Title
RESOLUTION NO. 2015-137 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CONTINUATION OF ELECTRICITY COMMODITY PURCHASES FROM SHELL ENERGY AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH THE PURCHASES
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution(s).
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SUMMARY
In order to help foster price competiveness, the California Public Utilities Commission in 1998 began allowing certain energy customers to purchase electricity from third-party providers (instead of their local Investor-Owner Utility), know as Direct Access Service. The City of Chula Vista purchases electricity for four municipal buildings from Shell Energy under Direct Access Service. The City is now updating its electricity procurement rates with Shell Energy, which are similar to last year's and approximately 30% lower than historical commodity prices. This approval would allow for continuation of the electricity commodity purchases for up to 1-year.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the proposal consists of a continuing administrative action involving the purchase of electricity. Therefore, pursuant to Section 15378(b)(2) of the State CEQA Guidelines the activity is not subject to CEQA review.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
In 1998, the California Public Utilities Commission began implementation of Assembly Bill 1890 (The Electric Utility Industry Restructuring Act) to make the generation of electricity more competitive in California. One of the key provisions was the creation of "Direct Access Service" options in which commercial, industrial, and agricultural customers could select to purchase electricity from a third-party ...
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