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Community Choice Aggregation Feasibility Analysis Alameda County June, 2016 15 MRW & Associates, LLC Startup Costs Table 4 shows the estimated CCA startup costs. They are based on the experience of the existing CCAs as well as from other CCA feasibility assessments. Table 4. Estimated Start-Up Costs Item Cost Technical Study $200,000 JPA Formation/Development $100,000 Implementation Plan Development $50,000 Power Supplier Solicitation & Contracting $75,000 Staffing $1,000,000 Consultants and Legal Counsel $500,000 Marketing & Communications $500,000 PG&E Service Fees $75,000 CCA Bond $100,000 Miscellaneous $500,000 Total $ 3,300,000 Working Capital $51,000,000 Total $54,300.000 Working capital is set to equal three months of CCA revenue, or approximately $50 million. This amount would cover the timing lag between when invoices for power purchases (and other account payables) must be remitted and when income is received from the customers. Initially, the working capital is provided by a bank on credit to the CCA. Typical power purchase contracts require payment for the prior month’s purchases by the 20th of the current month. Customers’ payments are typically received 60 to 90 days from when the power is delivered. These startup costs are assumed to be financed over 5 years at 5% interest. Energy Efficiency Program Costs CCA’s have the opportunity use both electric and gas public purpose program funds to provide energy efficiency programs to customers, and using rules defined in CPUC Ruling R.09-11-014 and various cost reports.26As discussed in Chapter 7, approximately $3.9 million would be available for programs administered by a CCA to Alameda County residents, including both 26 Electric and Gas Utility Cost Report. Public Utilities Code Section 913 Report to the Governor and Legislature, April 2016.