The Bay Area Council supports changes in California’s energy policy to support a reliable supply of energy for the region provided in a market-driven structure that lowers costs. 

Employers and consumers alike must have a reliable, affordable, clean, high-quality power supply to sustain a prosperous economy and high quality of life.  The portfolio of energy options must contribute to a carbon neutral economy whereby energy sources, conservation, and energy efficiency measures continual reduce net carbon contributions to help meet the greenhouse gas emissions reduction targets established in AB 32, the Global Warming Solutions Act of 2006.

The Bay Area Council framework for energy policy supports:

1. Assure adequate energy reserves through long term planning and procurement
2. Lower energy costs through competitive wholesale procurement
3. Align utility rates and cost allocation to be equitable based on the cost of service to the user
4. Provide retail choice for California’s businesses
5. Encourage energy supply from cost competitive renewable energy resources and alternative fuels that reduce impact on the environment.
6. Upgrade and expand transmission line capacity to provide added security and capacity to receive energy from new and existing sources.
7. Promote aggressive conservation and demand management through financial incentives to customers as well as voluntary efforts.
8. Promote adequate supplies of natural gas to assure reliable supply at competitive prices for California.

A comprehensive package of short-term, intermediate-term and long-term actions are needed to ensure the availability of reliable, affordable, high-quality electrical power.  The following objectives should be pursued and achieved in the shortest time-frame possible.

These improvements build upon policy such as AB57 to foster the conditions in which a healthy wholesale market for electricity resources can develop.  A healthy wholesale market will lead to lower costs and more reliable service for all Californians and create the opportunity for business consumers to find in the marketplace the electrical service that best meets their individual needs. 

Assure Resource Adequacy
It is essential that the state assure that there are adequate supplies of electricity and natural gas. This is necessary for a healthily business environment and quality of life for all Californians.

Lower Costs for All Californians through Competitive Wholesale Procurement
New generation should be procured through a competitive bid solicitation process as provided by existing law (AB 57, Wright, 2002), the provisions of which are being implemented by the Public Utilities Commission in an ongoing proceeding.  These proceedings also address the critical issue of resource adequacy. The Bay Area Council advocates for implementing this process as soon as possible.
 
Relevant Committee:
Energy and Natural Resources
Business Council on Climate Change