Samuel Golding’s Insight Into the South Bay Clean Power Business Plan

2017-02-16_15-48-44As the primary author of the South Bay Clean Power Business Plan, Samuel Golding, of Community Choice Partners, has been consulting for our SBCP Working Group since the summer of 2016.  Here’s Samuel’s guest post on the models employed for the best practices that drive the strategic direction and planning for South Bay Clean Power’s CCA:

With Great Power Comes Great Responsibility

South Bay Clean Power is BIG. Two times the size of the largest CCA under implementation in Northern California. And when all of Los Angeles County goes CCA, almost one-third of Southern California Edison’s current load will be served by public power:

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One of the most important takeaways from our research, analysis and planning is that with this scale comes the responsibility to design an appropriate kind of CCA. The launch process and routine that has worked for smaller CCAs will not work for South Bay Clean Power. Our Business Plan details the design and process that will work, based on proven models and best practices.

The main issue is that South Bay Clean Power should not rely on a primary power supplier at the outset, as other CCAs have done.  Instead, the program must diversify its sources and suppliers of power — from Day 1. The CCA also need to work with Southern California Edison to make sure that the transition goes smoothly. Both parties share the responsibility to make that happen — proactively and collaboratively – because South Bay Clean Power is so large.

The ability to do all that practically means contracting for a full suite of energy risk management services – and doing so based on the proven model of capabilities that established public power entities employ. Growing these risk management capabilities incrementally over a period of years, like smaller CCAs have done, is not a viable option for South Bay Clean Power — the CCA needs to launch with those capabilities in place. Continue reading