Marin Energy Authority will seek $63 million in federal stimulus money

Meeting for the first time this week, the board of the newly formed Marin Energy Authority agreed to seek $63 million of the federal stimulus package working its way through Congress.

Dawn Weisz, the Marin County sustainability planner who was named the authority's interim director, will travel to Washington D.C. this month in an effort to lobby for funding.

The authority was formed in November to explore projects to reduce greenhouse gas emissions.

"We propose to put into action a shovel-ready pilot project to implement solar, wind, hydroelectric and methane facilities, install smart grid technologies, retrofit buildings to increase energy efficiency and undertake studies to evaluate the cost effectiveness and feasibility of additional energy conservation and renewable energy generation projects," states a letter the authority will send to U.S. Secretary of Energy Steven Chu.

Peter Luchetti of San Rafael, a financier who serves on the authority's volunteer advisory group, acknowledged at Thursday's board meeting, "our projects actually aren't quite shovel ready." But, Luchetti added, "What have we got to lose?"

The authority, which has two employees and a $330,000 budget provided by the county of Marin to cover its first six months of operation, consists of the county of Marin and every municipal jurisdiction in Marin except Novato, Larkspur and Corte Madera - whose councils are stilling mulling over the idea.
Chief among the authority's projects would be the Marin Clean Energy initiative, which calls for the authority to compete with Pacific Gas and Electric Co. as the retailer of electricity to Marin customers, in order to boost usage of renewable energy in the county. The idea is for Marin Clean Energy to match PG&E's rates while substantially reducing use of nonrenewable, "dirty" energy required to meet Marin County's energy needs.

Weisz has said that Marin residents who leave PG&E to join Marin Clean Energy will have a choice of using 100 percent renewable power, which she expects to cost 8 to 10 percent more than PG&E's electricity, or a "light green" option, which she said will maximize the percentage of renewable power used while matching PG&E's rate.

PG&E representatives say customers will have to spend far more for the cleaner energy: 20 percent more for the light green product and 30 to 40 percent more for 100 percent renewable energy.

Eventually, the Marin Energy Authority intends to build its own renewable energy generation projects. Initially, however, the plan is for the authority to sign a five- to seven-year contract with a financially stable energy supplier who will be responsible for delivering the 240 megawatts the county uses.

On Thursday, the authority's board approved paying Chicago-based Navigant Consulting $100,000 to prepare a request for proposals. The plan is to discuss the request for proposals over the next several months and to release it into the market in May for three months. Weisz has said whether the authority or PG&E is right about cost forecasts will become clear once bids start coming in. She expects to begin reviewing the responses during the late spring and summer months.

"If we get some favorable responses, we'll begin to develop a contract or more than one contract," Weisz said.

Once a contract has been developed, the jurisdictions that make up the authority will have a minimum of 90 days to decide whether to remain as members.

"This would be the go, no-go decision and that is likely to occur this time next year," Weisz said. "Around that same time we would be submitting an implementation plan to the California Public Utilities Commission."

PG&E continues to vigorously oppose the Marin Clean Energy initiative. In a letter to authority board members sent earlier this week, PG&E spokesman Joshua Townsend noted that the San Joaquin Valley Power Authority, the first authority certified by the CPUC to compete with PG&E, has been unable to finalize an agreement with a power supplier "due to credit and energy market volatility." A tentative deal with Citigroup Energy fell through.

"We believe you can and should reconsider your decision to enter into the electricity business in Marin County, and instead pursue a partnership with PG&E," Townsend wrote the board.

Weisz said the San Joaquin authority was unable to sign a contract with Citigroup earlier due to PG&E's interference. First, she said, the San Joaquin authority was delayed by settlement talks with PG&E that stemmed from its complaint to the CPUC that PG&E was using unfair tactics in its marketing campaign against it. In the settlement agreement PG&E signed with San Joaquin it acknowledged that while it was once neutral with respect to community choice it now intended to market against community choice efforts.

More recently, Weisz said, the San Joaquin authority's progress has been blocked by PG&E's insistence that it post a large bond to protect PG&E in case it later goes out of business and PG&E has to absorb its stranded customers.

Read more San Rafael stories at the IJ's San Rafael section.

Contact Richard Halstead via e-mail at rhalstead@marinij.com

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