months ago. -- i served as a chairman of the marin energy authority. we are and 8 member agency consisting of several of the smaller cities. we are a joint power agency. i will move over to the over microphone so i can provide a power point. i will fast forward to a couple of the slides because i know commissioners have them and we are tight on time. i want to focus on some slides. i will go to slide numberfour.

that includes the title. the energy authority is primarily focused on clean energy programs there are other things that we are working on as well. right now, we call ours the seed program. we intend to use the legal authority to provide a solar financing district route marin county. we have been very aggressive in seeking grant money from the department of energy and the california energy commission to implement a smart grid technology and command side programs. we are working on some software

tools that will facilitate smart grid methodology. those programs are off and launching right now. as the chairman indicated, my main purpose is to update you on our recent activities. the next slide syrups and has a review. we have organized ourselves to add two critical products to our of ratepayers. -- the next slide serves as a review. this would be starting in late may. that light cream product guarantee is a 25% renewable content with no cost premium.

for people that want to opt up to the agreement content, we offer a 100% product for our customers. -- the light green thproduct guarantees 25% when mobile content. -- renewable content. mordida we have had a very conflicts political battle to reassure the council that this was the way it was a originally predicted. there was a lot of political opponents. we often have to compare the value of these program with the

status quo. basically, the choice that citizens will make whether or not to opt out starting this spring will really well down to whether they think that 15% renewable power is good enough and if the government can provide an alternative that would bring renewable content up to 25%. the focus on the political effort between the proponents and opponents has boiled down to a public sense of what is the risk of letting government move into a space that is occupied by the monopoly. different people have different points of view on that question. the good news is that 8 of our nine original members that form the energy authority about a year and a half ago are still

with us today. there have been literally 30-50 public meetings throughout the county. the idea is to look at the the contract and decide whether it is safe in the jurisdiction. we have to been pinning down the details of our contract with shell energy, north america. i will skip to slide number9. our plan is very similar to yours. we will launch later this year with a 25% qualifying renewable content in our mix. our business plan target is the

50% renewable by 2015 and 100% by 2016. these targets are discussed on a five-year basis. we're looking to get a 100% renewable content within six years. so for all the indications are that they will meet this goal. they will be able to meet this with no cost premiums whatsoever. our product costs and our deep green costs will converge in six years. at that point and time, our plan is to have everyone merge into our 100% program assuming that we can beat the incumbent

utilities generation cost. >> and little bit of healthy competition between marin county and san francisco. >> that's right. it is good to provide for each other and to have some competition. they also serve -- how can government stay efficient. pg&e will be attempting to get under us in terms of a generation costs. i think that competition is a wonderful thing. that is the main policy objective that we appreciated. this allows the jurisdictions like yours and hours to do this. we want to say how grateful we are that our brothers and sisters over the golden gate

bridge are serious. when san joaquin pulled up short, we felt kind of lonely. thanks to you all, we don't feel lonely. we are very interested in a cooperative effort. there are probably some opportunities that we can enjoy with respect to energy efficiency programs. what we are doing here on day one is a pretty straight forward brokered power purchase agreement for existing stocks of power. this allowed us to tie up our load and kick it all certified given the cost constraints that we had. ours is a simple approach. we are purchasing existing power.

we will focus our efforts on building renewable power projects. the types of values that you commissioners have addressed our very admirable and those are the things that we will try to emulate across the bridge. you can see there's some uncertainty indicated at the bottom. we now that our products will be 25% guaranteed renewable. it will be slightly cheaper than the generation, for when we launch in our efforts when we approved the contract.

we have to roll into our costs that is imposed upon aggregation of ratepayers. with all of those administrative costs, exit fees, and the actual underlined generation, we will have an equivalent number on our utility bills. our approach with shell energy was to get a full requirement. they do all of the interface with puc. in contrast to the power choice

approach, we are keeping responsibility for a couple of things that you will be able to get through your power to force. this is an impressive bunch. marin energy decided to maintain agency management of the items listed here we are getting this directly with the puc. we will handle most of our customer service issues. we will have deprograms within our agents separately from the contracts we are getting from shell energy. ours is a slightly different approach. >> why did you decide to do

that? >> it was a judgment call about the kinds of policy-making and activities that are citizens wanted to see and the cost effectiveness that we believe that we could achieve with our staff. >> just to clarify, will we be the main point for customer service? >> the answer is yes. we would be the primary agents. >> if people have an issue,

would they pick up the phone and kit a puc staff person? >> in terms of doing customer outreach, i think that that would be us. in terms of the provider of account services, the thought process is in the up front phase. there would be a big piece that might be all sorts. >> i would ask that we look at

these pieces and that we learn. >> this is other energies as well. >> another comment that i could make that you have done a year of hong work on your building division about how you will source at your renewable project. the power twist is an excellent partner. in our case, we have not identified where and how we will swap out our broker power to

deal with our projects. the nature of the power twist team is better able to meet your vision than they would have been. we needed a strong broker to get stuff in the marketplace. in our case, shell did a good job of arguing the advantages. marin is behind your efforts and we were trying to identify how we would build a renewable in the future. we want to implement a hard line program and then start hunting for projects as we go.

thanks to san francisco and marin and san francisco and the other cities, we are already adding value to the marketplace. we wanted to have 50 megawatts of wind power. we would not be having this conversation if we were looking at a community choice also we were talking about putting a methane and chin on a couple of landfills. there is discussion about diverting food and green waste into a methane digester. this is good for the market. even if none of us survived the marketing, i am proud of what

has been done for the signal for the sake of the renewable energy developers. better yet, if we get into the business and we get those guys were rolling and we create a self directed revenue stream so we can decide where and how we build renewable projects that help our own people. we have already added value in the public policy arena by trying to do this so far. >> we should also mention that it is not ephemeral. marin and san francisco is providing the architecture for the creation. we don't have green lines that will get us to where we want to go. >> i could end by providing a

picture of what our time line in vaults. on february 4th, our energy authority board intends to improve the power purchase agreement, our service agreement, to receive the california public utilities commission. we can launch operations. we intend to be operational on june 1st and about 10,000 of our accounts are in marin. a scary guillotine hovers over the kennedys on community twist aggregation. -- hovers over the

community on community choice aggregation. we are moving with all deliberate speed to make sure that we get our program up and running by june 1st so there is no question about our rights to do this. i think it is important that citizens understand the stake on that ballot measure. the last thing i will share with you as far as the technical update is the technical contract which is different from what you develop. we need to be able to substitute the power with our self designed and self created renewable power projects. there has been in research substitution developed.

our goal is to substitute as much of the broker power out of our supply as possible in the next five years. if we survive the launch efforts, the ballot measure. then we can get to work and employee energy efficiency programs and utilize the revenue stream that is unique to community choice aggregation. there will be funding available for us for us to invest as a public agency or purchasing power that private developers use. we do hope that we will be able to generate 100% of the electricity that we need on a renewable basis. our revisions are very closely aligned.

we are working very well to meet these objectives. >> several of the slides talk about the efforts and the structures in place to manage risk. >> there has been an enormous amount of misunderstanding about the nature of this enterprise with respect to risk to the general funds of the member agencies of our authorities. something you have not had to deal with. another purposeful brand of misinformation in plain that there is general risk to the county by the taxpayer. many of the slides that we provided tried to address that misinformation. there was an effort to lead the

agency because there was an assertion and somehow the generation would be put at risk. the lawyers say that this is an issue that we have to deal with. i put it that answer to rest in sausalito. this has been a very time- consuming debate. there was an assertion that on like a water district, the liability is required by the energy enterprise would somehow land on the general taxpayer including taxpayers in

jurisdiction that did not join the jurisdiction in the first place. the management and cost structure developed by that agency. the main risk remaining is whether the energy authority can manage this project cost effectively enough to make sure that our costs to not start to go above pg&e. for the rate payer, that is a minor risk because they always have the right to opt out. there is a risk that they would have to pay an exit fee. if this is still lower than what

they suffered, they can make that decision for themselves. we had to spend a lot of time talking about how we mitigate this risk. there was the effort to make sure that the agreement did not allow some loophole that someone could go through to git to the taxpayer or the general fund. >> house central to that is the structure itself? >> it was critical for marin. in a sense, san francisco is a public corporation. the liabilities did not become the liabilities of the taxpayer. it was much more complicated because we had to create a jpa and convince the city members

that this would not be tapped by the joint power authorities. some creditor cannot get this out of the general fund. we had to teach people about corp. maulaws. this was really kind our civic ignorance at local level. that is the game. as i sit back now seven years or 8 years hence looking at the law, one of the down sides of the way the law is structured is that the joint power agency's suffered an enormous burden of work to keep all of the nervous members in place.

san joaquin saw this, they lost two of their members in the final hours of their efforts. we lost 1 because of fear, innuendo, and confusion. this is the reality of what we are facing relative to our utility and what they stand to use because community choice aggregations are formed. when you are dealing with 9 nervous city councils, each of whom have elected council members, there is a lot of -- that has to take place. my counterpart and i have spent a lot of time trying to make sure the councils are comfortable. the good news is, we are done with that. as of january 12th, this is for us to have been removed.

>> i want to thank you for being here and the way in which he has really reached out to san francisco. i appreciate the close working relationship that has been established. we need to brace ourselves. it is helpful that there is a partnership between marin and san francisco. i look forward to continuing to work together. >> a former assemblyman has been

hired to run an organization. this is funded by one entity, pg and e. there are marketing pieces to the ratepayers encouraging them to opt out. i know you have filed a complaint with the public utilities commission around the behavior of the incumbent utility trying to scare people out of the aggregation of prematurely. we are submitting that information. they are already trying to encourage them to sign up on a website prematurely indicating their desire to opt out of based on misinformation in the flyer. the processe has to be processed

through the procedure we are about to launch into. we are designing our notices. i want you to be aware that this kind of marketing shenanigan is already off and running in marin county. i suggest that you don't have long to wait before you see this in san francisco. you have to fight to contactor marketing activities and to maintain our customer base. at the same time, a simple majority can block each efforts to to aggregations without incurring the costs. there is a 2 front war brewing on those bases. another thing that i want to mention is one thing that our jurisdiction is starting to