INDICATOR

Renewable Energy Use and Clean Distributed Generation

 STATUS

The combined amount of renewable energy from SCE and Commerce Energy in 2006 was 531 Gigajoules, or 18% of total electricity usage, representing a 1% drop from 2005  levels.   This drop was caused by the decline in SCE renewable power mix for 2006 to 16% over its service area, down from 17% in 2005.  Commerce Energy, contributes 2% of total electricity usage.  Clean distributed energy is currently .10% of all electricity usage.

Much of the world’s current energy use and production is unsustainable. Pollutants generated during energy production and use take a dramatic toll on our environment. In contrast, most renewable energy technologies produce little or no pollution.  Renewable energy technologies have a low (<25%) reliance on fossil fuels to support their operations, and are therefore less polluting. Increased reliance on renewable energy is also a critical component of California’s plan to reduce greenhouse gas emissions.

The state has a Renewable Portfolio Standard (RPS) for electricity generation which targets a 20% total renewable portfolio in California by 2010, and 33% by 2020. Southern California Edison (SCE), Santa Monica’s electrical utility, boasts a renewable portfolio which well exceeds that of the state of California as a whole: 16% in 2006.  This compares favorably with other Investor Owned Utilities, which measure between 5% and 11%.

However, SCE started farther along in meeting 2010 goals and has only increased renewable generation .2% from 2002-2005 despite the proximity of the Tehachapi Wind Resource Area in its service area.  SCE is projected to maintain its 16% renewable portfolio in 2007.

In its analysis of the reasons for this slow progress as a whole, the California Energy Commission cited inadequacy of transmission capacity and in financing renewables generation as stumbling blocks. The next year or so will show whether these barriers can possibly be overcome by SCE and its fellow electricity providers in time to meet state targets.

The City became a direct access customer in 1999 when the State attempted electric utility deregulation.  Deregulation was suspended in 2001 and the City is one of the few remaining entities in California allowed to continue purchasing electricity from an electric service provider other than its serving utility.  
 
The city has a contract with Commerce Energy to purchase renewable energy to meet 100% of its electricity needs, however,  Commerce presently supplies only 59%.  This shortfall has arisen because the city’s agreement with SCE requires an application to switch the supply of electricity from SCE to Commerce within 90 days of meter activation.  If that time period lapses, the electricity is provided by SCE, the default provider, until the meter is turned off.  That lapse has occurred for 20% of the city’s active meters, representing 41% of city usage.  The remainder is provided by SCE at its current portfolio renewable rate of 16%, not its allowable 100%.  The city of Santa Monica has purchased green tags to offset the non-renewable portion of SCE’s power mix, 34% overall, or about 9 Million KWh annually, back to January 2007.
 
The city now has a procedure in place to ensure that all newly activated meters receive electricity from Commerce, so the amount of renewable energy purchased to meet the city’s needs should increase.  There is also some indication that the CPUC may once again allow direct access, further facilitating the purchase of renewable energy.