Laserfiche WebLink
Community Choice Energy (CCE) Financing Overview <br />November 8, 2016 <br /> <br /> <br /> 4 <br />A question has arisen about the disposition of a credit guarantee provided by a member agency <br />if that agency decides to terminate JPA membership and participation. Per the EBCE JPA <br />Agreement, here’s how that is addressed: <br />1) The only opportunity for a member jurisdiction to withdraw from EBCE prior to launch <br />of service is if the program can’t beat PG&E on generation rates, level of renewables <br />and GHG emissions. No credit will be spent (nor power contract signed) until EBCE has <br />power supply proposals that say with certainty that these minimum thresholds can be <br />met. If those thresholds are met, the member agencies are obligated to move forward. <br />If the thresholds cannot be met, the line of credit will go unused and the County will be <br />“out” its initial seed capital. We do not expect this to happen. <br /> <br />2) If a jurisdiction decides to terminate membership and participation after program <br />launch, the status of the credit guarantee will be included with its pro-rata share of <br />residual contact expenses and other carry-over costs associated with its departure. The <br />good news is that the credit guarantee requirements don’t remain in place for long <br />(usually a year or less) and it’s highly unlikely a city would leave within the first year. The <br />cost and administrative considerations would make departure so soon after program <br />launch difficult for the member agency. <br /> <br />If you have any questions about this information, please feel free to reach out to Bruce Jensen <br />on our team by email or phone. As noted, credit and financing for the new Agency will be one <br />of the early operational elements the EBCE Board will address. <br /> <br /> <br /> <br />