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Community Choice Aggregation Feasibility Analysis Alameda County June, 2016 32 MRW & Associates, LLC Chapter 5: Macroeconomic Impacts Each of the three scenarios discussed thus far is next examined for job impacts within Alameda County. To understand just how job impacts can come about, and the extent of those changes (plus or minus), a brief description of elements associated with the CCA and how they influence the existing economy is provided. How a CCA interacts with the Surrounding Economy The establishment and operation of a CCA creates a new set of spending (also referred to as demands) elements as a community changes the type of electricity generation they want to purchase, where the new mix of generation is (to be) located, adjustments necessary for existing generating assets of the provider utility, and implications on customers’ bills as a result of retail rate differentials. Some of these new elements have temporary effects, while others have long- term effects. Investment in locally situated elements (such as operation & maintenance) will result in the direct creation of jobs, and when a job is created in a sector, there will be a multiplier response on “backwardly-linked” jobs with supplier businesses. The new elements include:  Administration – [direct jobs, long-term effect] county staffing, professional-technical services and I/T-database services  Net Rate Savings (or bill savings) – [long-term effect] county households have an increase in their spending ability, county commercial and industrial energy customers experience a reduction in their costs-of-doing business which makes them each more competitive, garnering more business that requires more employees, and municipal energy customers can provide more local services which requires more local government staff.  New Renewable Capacity Investment within County – [direct jobs, short-term]  New Renewable Operations within County – [direct jobs, long-term]  New Energy-efficiency within County – [direct jobs, short-term]  Net Generating Capacity and Operations offsets for PG&E outside of county – [direct jobs, short & long-term] To frame expectations around how many direct jobs can be created in the county from the above CCA elements, consideration must be given to (a) how much of the spending associated with the CCA scenario is fulfilled by a within county business or resident workforce, and (b) what do these locally-fulfilled dollars represent in terms of current annual county business activity, e.g. is this a large spending event. Table 15 presents these considerations, which are shaped in part by assumptions defined by the MRW study team. For instance, the labor share required on the annual investments (or the operating budget) was assumed to be 100 percent satisfied by within county resident laborers.