SLO and Morro Bay now receive cleaner energy, and it’s cheaper, officials say
A new way of receiving cleaner power, called community choice energy, has arrived in San Luis Obispo and Morro Bay, and it will significantly reduce carbon emissions while saving customers money, officials say.
Monterey Bay Community Power, a nonprofit electricity provider serving Central Coast counties, began providing service to the two SLO County cities on Jan. 1.
Electricity will still be powered through PG&E’s infrastructure, and local customers won’t need to change anything about how they receive energy or pay monthly bills.
PG&E previously supplied electricity to those cities, using a combination of carbon and renewable energies.
The community choice energy program focuses on sourcing power from renewables such as wind and solar, as well as hydroelectricity, which is carbon free but technically not a renewable energy source under the government’s definition.
But now, customers will receive a monthly bill from PG&E with the inclusion of the Monterey Bay Community Power (MBCP) information as a part of the invoice.
“MBCP willl become the primary electric generation provider leveraging carbon-free resources at a lower cost, and PG&E will continue its traditional role delivering electricity as well as billing,” according to an MBCP news release. “Both MBCP and PG&E are committed to a transparent and informed transition for all customers.”
SLO County clean-energy customers will save money
Officials from SLO, Morro Bay and Monterey Bay Community Power held a news conference Thursday to announce the launch with a ceremonial “flip the switch” event, saying customers will pay $3 to $10 less per month through a standard MB Choice program that uses carbon-free energy.
Additionally, customers will have the option to choose a higher-level program that provides 100% renewable energy, using only solar and wind. That program, called MB Prime, costs $3 to $5 more per month than the standard MB Choice program.
“This program offers local choice, local control, clean energy and economic vitality,” said Morro Bay Mayor John Headding, who applauded the launch. “When do all of these come together?”
Headding said that a wind farm proposal in Morro Bay, as well as potential battery storage facility at the decommissioned power plant, could work in tandem in the future to supply carbon-free and renewable energy through Monterey Bay Community Power.
Customers can still opt out of the program by calling MBCP, or designating an opt out on the agency’s website, and select PG&E as provider. Otherwise, they’ll receive energy from MBCP.
SLO Mayor Heidi Harmon said that city residents would save an estimated $1 million total in 2020 and $9 million by 2025 because of cost reductions.
“We care deeply about social equity, as well as energy resilience and reliability,” Harmon said. “I’m so glad to see this brought to life.”
Harmon added that the change for SLO will remove 20,000 metric tons of carbon emitted into the atmosphere and help the city reach its carbon neutrality goals by 2035.
Headding said Morro Bay customers collectively will save about $250,000 on electric bills in 2020 and $6 million by 2025.
Two SLO County government agencies not yet signed on
Other local cities participating starting in 2021 include Arroyo Grande, Grover Beach, Paso Robles, Pismo Beach and Santa Maria.
The city of Atascadero and the county of San Luis Obispo have not yet signed on to the program; the county is conducting a financial analysis to determine whether it would participate.
J.R. Killigrew, the agency’s director of communications and energy programs, said that MBCP respects the right of any community to choose how its energy is provided, and it will remain available to any that have not joined.
“Transparency and accountability are hallmark principles of public agencies like Monterey Bay Community Power,” said agency CEO Tom Habashi, in a statement. “All our financials and our board meetings are accessible and open to the public. Like all other community choice energy agencies, we are accountable to our policy and operations board and to the communities that we serve.”
Where community choice energy came from
The idea of community choice energy, also referred to as community choice aggregation, was initiated with the California State Legislature bill AB 117 in 2002.
The idea behind the bill was to give authority on purchasing power to local communities, rather than almost exclusively leaving that responsibility to utility giants PG&E and Southern California Edison.
Currently, 19 community choice energy (CCE) programs in California serve about 10 million people. Elected officials from local jurisdictions vote to enter CCE programs.
Chris Read, SLO’s sustainability manager, said that the way energy is provided, the grid delivers energy sourced from carbon-free or carbon-based producers without distinction.
“The grid is like one big bath tub, and if you add a little yellow or a little blue, it changes the complexion,” Read said.
But the overall effect helps achieve climate action goals, Read said.
About half of the energy purchased by MBCP comes from out-of-state producers and half comes from California, with 34% renewable and 64% hydro-electricity, according to agency officials.
Clean energy impact on SLO County
MBCP is working to add infrastructure, such as electric-charging stations, in San Luis Obispo County, having already received state funding for millions of dollars of EV charging facilities in the Monterey area.
“We’re working toward adding as much as $16 million in EV infrastructure in SLO and Santa Barbara counties,” Killegrew said. “The state has recognized the need in this area.”
Molly Kern, the SLO Chamber’s director of governmental affairs, said community choice energy will unlock economic potential while supporting green industry and serving the organization’s 1,400 businesses and 38,000 employees.
Killigrew said that large customers have been known to save up to $1,000 per month in energy costs. Organizations such as hospitals could benefit from large savings.
Quinn Brady of the SLO Climate Coalition said the cities’ participation is a “testament to what’s possible with political will to bring visionary solutions to life.”
This story was originally published January 9, 2020 at 4:47 PM.
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