DATE: August 8, 2017
SUBJECT:
Title
RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO AN ENERGY MANAGEMENT PLAN (EMP) CONTRACT WITH SAN DIEGO GAS AND ELECTRIC (SDG&E) FOR A PRELIMINARY FIVE YEAR EMP PURSUANT TO ASSEMBLY BILL 628 TO BE SUBMITTED BY SDG&E WITH THE DISTRICT'S SUPPORT TO THE CALIFORNIA PUBLIC UTILITIES COMMISSION (CPUC) FOR APPROVAL, CONTINGENT UPON THE CPUC'S APPROVAL OF AN INTERIM SHORE POWER RATE FOR THE DISTRICT'S CRUISE SHIP TERMINAL
Body
EXECUTIVE SUMMARY:
In an effort to mitigate the risk of increased energy rates applicable to the District's shore power system, San Diego Gas and Electric (SDG&E) and the District began discussing a cruise-specific electricity rate necessary to remain competitive and retain the local cruise business while meeting environmental requirements as established by the California Air Resources Board (CARB) At-Berth Regulation. The District and SDG&E entered into a Memorandum of Understanding (MOU) in April 2016 that maintained the legacy "Schedule A" rate for a limited period of time as an interim rate, subject to approval by the CPUC, and allowed staff from both organizations to discuss elements of a conceptual Energy Management Plan (EMP). Assembly Bill (AB) 628 authorizes ports and harbor districts to jointly prepare EMPs with electric and gas providers in recognition of the need to reduce energy costs and air pollution in their business operations. AB 628 also recognizes that "[e]nergy utility customers located within the state's port and harbor districts may benefit from the addition of new businesses and the retention of existing businesses through increased energy cost certainty." The interim rate request was submitted to the CPUC by SDG&E in May 2016 but no action has been taken by the CPUC. A resolution approving the interim rate is on the CPUC agenda for August 10, 2017. As a result, the Board's action authorizing the Executive Director to enter into an EMP Contract with SDG&E is contingent ...
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