The Clear the Air Coalition believes a government-controlled CCA should achieve two requirements to gain the support of elected officials: it should not burden taxpayers with significant financial risks, and it should fulfill the City’s goal of delivering 100 percent renewable energy.
The City of San Diego’s Draft CCA Report acknowledges the financial risks could be in the billions, and nothing modeled in the report achieves the City’s Climate Action Plan goal of 100% renewable energy.
Moving forward with CCA would be like buying a house without knowing what your mortgage would be.
The city’s report makes it clear that Community Choice Aggregation (CCA) would be a massive undertaking and involve significant risk for taxpayers:
- San Diego taxpayers could be on the hook for $2.8 billion.
- City would need to issue $410 million in 30-year bonds to create a government-run CCA.
- Government-controlled energy would cost the city about $1 billion a year. The city's annual operating budget - for police, fire, parks, libraries, rec. centers, etc. - is $1.4 billion.
Can we trust politicians and bureaucrats to navigate complicated and volatile energy markets?
The city’s report acknowledges that energy commodity markets present significant market risks, noting that, “Managing a portfolio of power supply is an exercise in forecasting dynamic and often unpredictable consumer demand…” and “the magnitude of this proposed venture could significantly impact risk exposure in ways not yet experienced by other CCA programs.”
This has the potential to be another pension crisis.
There’s no rush. The City should not move forward until it has all the facts. Be quick but don’t hurry.
We need to know what the costs are.