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2-2 <br />1217� <br />711A* <br />Date- December 19, 2018 <br />To: The Honorable City Council <br />vim Stephanie DeWolfe, City Manager <br />City Council Meeting December 19, 2018- City Council Item <br />Ra. Proposed letter to the California Public Utilities Commission regarding Southern <br />California Edison Power Procurement Costs <br />The subject matter is on the agenda at the request of Councilmember Diana Mahmud. It concerns <br />pending litigation at the California Public Utilities Commission (CPUC) regarding Southern <br />California Edison's (SCE's) attempt to raise next year's energy rates to recover the costs it <br />incurred over this surnmer to procure energy, estimated at $972 million. SCE wants to charge <br />approximately $125 million of the shortfall to more than one million homes and businesses that <br />will leave Edison over the next few months to join Clean Power Alliance (CPA). <br />Background <br />The City of South Pasadena (City) was the second city to join the CPA in 2017. The goal of <br />community choice aggregators like the CPA is to offer more energy options to local consumers. <br />As a member of the CPA, electricity customers are automatically enrolled in the program. <br />However, the consumers, have the right to opt out and continue to obtain power through SCE. <br />On February 21, 2018, the City Council approved the default energy mix for business and <br />government customers at 50% greenhouse gas (GHG) free mix as it represents a substantial <br />increase in renewable energy compared to SCE's energy mix. On October 17, 2018, the City <br />Council approved a default energy mix of 100% GHG free mix for residential consumers, to take <br />effect in February 2019, <br />Action Requested <br />The City Council may approve the letter (attached) to the CPUC expressing concern on SCE's <br />filing seeking recovery of its losses by unfairly passing on the cost to CPA member constituents. <br />