LAKE COUNTY, Calif. – A company that had proposed to the county of Lake the implementation of a community choice aggregation program to cover utilities in the unincorporated county has been sold.
California Clean Power, based in Windsor, announced last week that it was acquired by Pilot Power Group.
As a result, California Clean Power said it was ceasing operations, with Pilot Power Group to “seamlessly transfer ongoing or outstanding projects” from California Clean Power.
California Clean Power had been pursuing a contract with the county to operate the community choice aggregation program, which allows jurisdictions to generate electricity for businesses and residents, with investor-owned utilities like Pacific Gas and Electric delivering the service through existing utility systems.
Such programs seek to save money for consumers and allow for communities to build portfolios of power sources that include renewables.
Pilot Power Group Chief Financial Officer Denis Vermette said the company is interested in offering the same service to the county of Lake or in putting in a new proposal.
“As it stands right now, it's sort of in their control,” he told Lake County News.
In early 2015, Peter Rumble of California Clean Power first made a presentation to the Board of Supervisors, proposing the contract.
After additional discussions and presentations, in December the board approved issuing a request for proposals from companies to develop a community choice aggregation program.
In March, the board discussed the four requests the county received from California Clean Power, Sonoma Clean Power, Tanoak Energy Advisors and the Energy Authority, as Lake County News has reported.
At that March meeting, the board considered whether or not to move forward and discussed changes to the rules covering such programs that may make them less beneficial, including the ability of utilities to charge increased exit fees, also called power charge indifference adjustments. Approved by the California Public Utilities Commission, those increased fees went into effect Jan. 1.
Despite concerns from then-incoming County Administrative Officer Carol Huchingson about the ability of staff to move forward on the proposal, the board wanted to keep its options open and reached consensus to have Huchingson form a consultant selection committee.
In May, Huchingson brought the matter back, outlining her concerns, with the board agreeing to put off pursuing such a program until at least after the new fiscal year budget is complete.
“I explained to the board early on in my administration that my office does not have the capacity to move forward with this project. The project remains on hold,” Huchingson told Lake County News this week.
Rumble told Lake County News that Pilot Power Group is still very much interested in delivering community choice aggregation services to Lake County, “and they are well positioned to do so after the purchase.”
As for Rumble, he said he is moving on and “taking this opportunity to decide what is next.”
Vermette said Pilot Power Group, which has been in the direct access market in California for 15 years, had worked with California Clean Power on various projects prior to the purchase.
He said Pilot Power Group decided to be proactive and acquire California Clean Power's collected assets to make sure they continued.
In addition to acquiring California Clean Power, Vermette said the majority owner of Tanoak Energy Advisors – another of the firms that had proposed to offer community choice aggregation services to Lake County – recently joined Pilot Power Group's team. She previously had acted as a consultant to the firm.
As for whether Pilot Power Group has offered community choice aggregation services, “We have participated in other bidding processes with various other cities and counties,” said Vermette, but so far they have not won a bid on such a project.
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