Politics & Government

School Board Opts Out of Marin Clean Energy

District officials cite higher costs compared to PG&E at a time of major budget concerns as the primary reason for decision.

The board voted earlier this month to opt out of the Marin Energy Authority’s Marin Clean Energy program, citing the higher costs associated with the venture’s alternative power provider as compared to those of utility giant Pacific Gas & Electric (PG&E).

In doing so, district officials cited the for 2012-2013, on top of a $550,000 projected deficit this school year.

“Given our financial situation at the moment, it’s more prudent for us to opt out for the time being,” said board president Robin Moses. “We’ll certainly revisit the issue in a year, but for now it’s not fiscally sound for us to do it.”

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MEA Executive Officer Dawn Weisz made a presentation to the board in April, and the board had to decide by the end of 2011 if it wanted to be part of , which begins in January. MEA spokesperson Jamie Tuckey declined to comment on the district’s decision, citing a confidentiality agreement keeping the agency from discussing its customers.

The agency’s retail arm, Marin Clean Energy (MCE), began selling power to local consumers in 2010 and all residents in Marin are now eligible to join after decisions by Corte Madera, Larkspur, Novato and Ross to join MEA in November.

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As MCE phases in new customers, those customers have some decisions to make. Consumers can choose to go with MCE or stay with PG&E as their energy supplier, but under state law, those wishing to remain with PG&E must formally opt out of MCE participation.

The Mill Valley School District joined MCE in August on a four-month trial basis, allowing MEA to conduct a cost comparison. MCE only competes with PG&E on electricity generation costs, as PG&E controls transmission and distribution. As a result, it can only directly control part of the costs passed onto its customers.

According to the district, the agency found that while the cost for generation of energy is lower with MEA, the administrative fees charged by PG&E increased the district’s overall energy costs with MEA. A recent decision by the California Public Utilities Commission to reduce those fees retroactive to April 2011 means that the District will see a credit on future bills reflecting that decrease.

MEA officials have said that cost is only one consideration for prospective customers, emphasizing that MEA’s whole mission is to purchase power from as many renewable sources as possible; currently the agency gets 27 percent of its electricity from renewable sources compared with 15.9 percent for PG&E. (Both of those figures exclude large-scale hydropower resources, which California doesn’t classify as “renewable.”)

But for the Mill Valley School District, cost was the driving force behind its decision, according to Superintendent Paul Johnson.

“It appears that the MEA is narrowing the gap in price but they’re not there yet and we’re in the middle of a budget crisis,” Johnson said.

The board agreed to review its decision annually and reserves its right to opt in should its financial situation improve.


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