City allegedly misused anniversary event money

This is disturbing on so many levels. Calexico needs to do something about the mayor misappropriating funds that were meant for the City’s 100th anniversary. Reminds me of the scandal the police department had a few years ago when the FBI was confiscating files. Maybe law enforcement should be looking at this…

Read the story by Roy Dorantes (below) that was posted on the KYMA website on August 24 yourself, and be sure to watch the video by clicking here. Additionally, please call Calexico City and ask for a copy of the report (hope I see it on Facebook soon!).  Their number is (760) 768-2110.

City allegedly misused anniversary event money

CALEXICO, Calif. – A Calexico economic commissioner said the city used funds collected for the city’s 110th anniversary in April for other events not part of the celebration.

Commissioner Ben Horton said, “Financed the Mayor’s Summit which ran up to about $3,638 which the public was not aware of this, which the public was not permitted to be involved with.”

Calexico Mayor Maritza Hurtado

A Calexico city official who didn’t want to be named admits some money donated for the anniversary was used for the mayor’s conference. An event closed to the public, but he said it was approved by the sponsor who donated the funds. He showed us an email as proof.

Horton questions why the community was not informed of that.

“The public was under the impression that this money was going to be used exclusively for the 110th anniversary.”

The city official also said no city employees worked on the event. Horton disagrees with that statement.

“And then, I find out that city employees were used to work on the event, which originally the 100th event was supposed to be no cost to the city, which there was cost to the city and hours or comp times

Horton questions why the expense list was not made public sooner.

“I would say the public was misled, and they were misled to the point that the money was used for other activities that they were not aware of,” Horton said.

The report that shows how the money was spent item by item is freely available to the public at Calexico City Hall.

Unemployment in Imperial County

The following is from a daily email, The Nooner, by Scott Lay (please note that information has been deleted from the original email for space):

CA ECONOMY: On Friday, we received generally good employment news for the Golden State. The unemployment rate remained steady at 4.2%, That’s a decline of 0.5% from July 2017. July saw a net game on 46,700 net jobs from June. The labor force increase by 113,000, which combined with the unemployment rate, paints a very good picture.

Of the eight economic sectors tracked, only construction (-1,200) and financial services (-900) experienced declines. The top three month-over-month increases were in numbers were professional and business services (15,100), trade, transportation and utilities (11,200), and leisure and hospitality (9,500).

Five counties with the lowest unemployment in July (not seasonally adjusted):

  1. San Mateo: 2.3% (-0.9% from July 2017)
  2. San Francisco: 2.4% (-1.0% from July 2017)
  3. Marin: 2.5% (-0.9% from July 2017)
  4. Napa: 2.9% (-1.0% from July 2017)
  5. Sonoma: 2.9% (-1.0% from July 2017)

Five counties with the highest unemployment in July (not seasonally adjusted):

  1. Imperial: 19.3% (-4.9% from July 2017)
  2. Colusa: 10.5% (-1.1% from July 2017)
  3. Tulare: 9.3% (-1.5% from July 2017)
  4. Kern: 8.1% (-1.6% from July 2017)
  5. Merced: 8.1% (-1.6% from July 2017)

From the Desert Sun: California farm baron offered to drop water lawsuit — if his family got a special exemption

This was posted on the Desert Sun’s website yesterday. A must read…

A lawsuit in California’s Imperial Valley could determine who controls the single largest share of Colorado River water in the West — a few hundred landowning farmers, or the elected five-member board of the Imperial Irrigation District.

But a newly obtained document shows that the farmer who filed the lawsuit,

Water runs through the Imperial Valley

Mike Abatti, was willing to sidestep that explosive legal question — if he and his family got a special exemption from a plan that could have limited his access to Colorado River water.

Abatti “would be willing to dismiss the present litigation with prejudice in exchange for a binding commitment from the IID to supply Mr. Abatti, his brother James Abatti, and father Ben Abatti with the water they reasonably need for farming,” Hejmanowski wrote.

If the three Abattis had received such an exemption, it could have angered other farmers — if other farmers ever found out about the deal.

“Mr. Abatti is willing to consider different structures and terms for documenting (the proposed settlement) so that it poses the least potential difficulty for the IID in regard to other persons,” Hejmanowski wrote.

IID didn’t accept either settlement offer.

The entire story can be read by clicking here.

Forbes.com: Subsidizing The Rich Through California’s Solar Scheme

We found this article while scanning the web on rooftop solar info. Below is a small pull out, but you can read the complete article here.

Subsidizing The Rich Through California’s Solar Scheme

So what’s the problem? First, the credit paid in California for the excess solar power is far higher than the cost of alternative electricity sources, usually from utilities or from the spot power market. Consumers without such solar installations have to finance that excessively expensive electricity, so that overall power prices are forced above the level that would prevail in the absence of the net metering system. This system, by the way, subsidizes the affluent (median income of those installing solar systems: $91,210) at the expense of all other power consumers (median of $67,821), an embarrassing reality from which the supporters of the net-metering system prefer to avert their eyes. 

Subsidizing The Rich Through California’s Solar Scheme

Who Controls Distribution of the Imperial Valley’s Water?

While looking around the Internet we came across this great article on The Desert Review by Brian McNeece. Please read it as it is a very important take on the water in the Imperial Valley.

Some locals have asked, “What does it matter who controls the water?”  It matters a lot.  Farmers rightly claim that they contribute the majority of value to

Farmland in the Imperial Valley

the local economy. They also claim that if they were to control the water, the Imperial Valley would be in good hands….

If you are one of about 500 farmers here, being in control of the water sounds mighty sweet, but if you’re among the other 179,500 residents of Imperial County, you might want those decisions to be made by elected representatives sworn to uphold the public good.

Link to the article at The Desert Review is here.

 

2018 Energy & Sustainability Summit

Leadership in an Era of Rollbacks & Setbacks

Overview
In 2017, after years of forward progress, the globe took a step backward as some of the world’s most important environmental protections were loosened and jeopardized. At the same time, last year saw the global transition to clean energy intensify as well as a renewed focus on public-private partnerships to advance environmental sustainability.
With the cost of renewables continuing to fall at an unprecedented rate, policy makers and business leaders increasingly feel emboldened to advance concrete commitments and work to accelerate climate action, even in the face of determined efforts to prolong the inevitable transition to clean energy. While the U.S. government pulled out of the Paris Agreement, American businesses resoundingly said “We’re still in”, and over 50 U.S. cities put forward ambitious timetables for getting to 100% clean energy.
Business is also advancing environmental sustainability and looking to increase profitability while reducing dependence on natural resources in a constrained world. Additionally, companies are looking to align their corporate strategy with the United Nation’s Sustainable Development Goals; realizing the SDGs, it’s projected, could create upwards of 350 million jobs and opportunities worth $12 trillion across a range of sectors.

Join Us on May 24! Silicon Valley Energy & Sustainability Summit 2018
Join us on May 24 at Oracle to learn about the latest policy and regulatory developments and to explore how to employ the latest innovative technologies and practices to create lasting value and explore what you can do on a practical level to prepare for an evolving landscape. The 6th Annual Silicon Valley Energy and Sustainability Summit will include C-Suite plenaries, policy round tables and case studies, all focused on the business case for clean and efficient energy, environmental sustainability, water conservation and climate action. The event brings together policy experts, elected and appointed officials, business executives and NGO leaders for a series of thoughtful and engaging discussions.

Why Am I Paying $65/year for Your Solar Panels?

Below is a great article from Lucas Davis, a UC Berkeley professor that published a report a few years ago about the closing of San Onofre, the nuclear facility north of San Diego, and how replacing the nuclear energy with natural gas was the equivalent of adding 2,000,000 vehicles to the roads of California.

Why Am I Paying $65/year for Your Solar Panels?

700,000 California homes now have solar panels; what does this mean for everyone else’s rates?

“This is the future,” one of my neighbors recently told me, proudly showing off his rooftop solar panels, “Forget the old, inefficient utility.” The panels do look great, and, for a moment, I got caught up in my neighbor’s “green glow” of eco-righteousness. Should I be doing “my part” for climate?

But wait a second. I already am! As Severin Borenstein has been pointing out for years, a big part of the reason why rooftop solar is so popular in California is our electricity rates. And because of the way rates work, every time another neighbor installs solar, my rates go up. I’m tired of it. Why should they get all the “green glow”? Why should I be paying more for their rooftop solar, particularly given that grid-scale renewables are so much cheaper?

Almost 700,000 homes in California have installed solar, about 5% of all homes in California. Today I want to figure out what this means for the rest of us. No fancy econometrics, no complicated model. I just want to do a simple back-of-the-envelope calculation to try to figure out how big of a deal this is.

brick

Note: Green glow. Image licensed under creative commons.

 

Utilities have a lot of Fixed Costs

It is helpful to take a step back and think about what it takes to deliver electricity. Utilities have lots of what economists call “fixed costs”. For example, utilities have to maintain all the transmission and distribution lines used to deliver power. These costs are fixed (not marginal) because they do not depend on how much electricity is consumed.

truck

Note: Utilities have lots of cool trucks. Image licensed under creative commons.

 

Who pays for these fixed costs? We all do. Every time you use electricity, you help pay for these fixed costs. There is a long history in the United States of regulators setting electricity prices equal to average costs.  Economists have argued that it would be more efficient to set prices equal to marginal cost. But the truth is this didn’t matter much in the past, in part because people didn’t have much choice about whether or not to consume electricity.

Until now. Rooftop solar is an opportunity for consumers to radically reduce the amount of electricity they buy from the utility. In Hawaii there is a lot of talk of “grid defection”, but in 99.9%+ of cases solar homes continue to be connected to the grid. Solar homes use the grid just as much as other households, as they are always either importing or exporting electricity, it’s just that they consume much less grid-electricity.

What this means is that good people like my neighbor contribute much less to paying for utility fixed costs. The fixed costs haven’t gone away, but my neighbor now has a lower electricity bill so pays far less of them. This leaves the utility with a revenue shortfall, and it is forced to raise prices. So who pays for the fixed costs my neighbor used to pay? Everyone else.

wires

Note: Utilities have lots of fixed costs.

 

A key subtlety here is “net metering”. Households who install rooftop solar pay only for the electricity they consume “on net” after solar generation. This is easy and simple, but also wrong. Implicitly, this means that they get compensated for their solar panels’ sales to the grid at the retail electricity rate. This is too high, significantly exceeding what the utility saves from not having to supply that electricity. Under an alternative rate structure, in which households were paid the wholesale rate, you would not have this “cost-shifting” away from solar households.

Cost Shifting 

Ok, but how much cost shifting is actually happening? Outside California, Arizona, and Hawaii, probably not much. But California has a lot of solar, about half of all U.S. rooftop solar. How much have California electricity rates increased due to the 700,000 homes with solar?

spiral.png

Note: Utility Death Spiral? Source here.

 

This is tricky because we don’t actually know how much electricity is being produced by rooftop solar. Almost everyone is on net metering, so we only observe net consumption, not solar production. Fortunately, the California Energy Commission has poured over solar radiation information and other data and estimated that total annual generation from California behind-the-meter solar is 9,000 GWh. About two-thirds of this is residential, so about 6,000 GWh. To put this in some context, total annual residential electricity consumption in California is 90,000 GWh.

So how much “cost shifting” does this imply? The average residential electricity price in California is $0.185/kWh, while the average wholesale price is about $0.04/kWh. Accounting for electricity that is lost during delivery to the end customer adds about 9% more per kWh delivered. Thus, each time a California household produces a kWh, the utility experiences a revenue shortfall of about $0.14. Multiply this by total residential distributed solar generation, and you get $840 million annually. California utilities receive $15 billion annually in revenue from residential customers, so the total shortfall is about 5%.

This is a crude calculation, and it could undoubtedly be refined. For example, distributed solar proponents argue that local generation allows the utility to avoid distribution system upgrades, which would represent an additional benefit. These impacts have been found to be relatively small, but this continues to be an area of active research. On the other hand, I’ve also made an assumption that significantly decreases my estimate of cost shift. In particular, I’ve used the average residential retail price, but California customers actually pay increasing block rates so most solar customers face a marginal price well in excess of the average price.

Conclusion

The total revenue shortfall works out to about $0.01 per kWh, or $65/year for the average California household. This is more than I expected. And, I’d bet most Californians are not even aware that this cost shift is happening.

So why am I paying $65/year for other people to have solar? It doesn’t make sense. Sure, I’m concerned about climate change, but my $65/year could go a lot farther if it was used instead for grid-scale renewables. Moreover, this is almost certainly bad from an equity perspective, as we know that high-income households adopt solar much more often than other households. Rooftop solar isn’t getting rid of the utility. It’s just changing who pays for it.

To read the article please click here.

Lucas Davis

Lucas Davis is an Associate Professor at the Haas School of Business, Faculty Director at the Energy Institute at Haas, and Research Associate at the National Bureau of Economic Research. His research focuses on energy and environmental markets, and in particular, on electricity and natural gas regulation, pricing in competitive and non-competitive markets, and the economic and business impacts of environmental policy. His work appears in leading academic journals including the American Economic Review, the RAND Journal of Economics, and the Journal of Political Economy. He blogs along with other Energy Institute researchers at energyathaas.wordpress.com.

 

WELL 2018 Annual Conference

WELL is convening a state-wide educational water conference on March 22-23rd, 2018 in Sacramento for California local elected officials. Local elected officials can make a difference for all Californians by taking the necessary steps to understand the dynamic of California water to assure adequate clean water for our communities, protect our natural resources and our local economies. Our hope is to facilitate understanding towards comprehensive long-term water policies that will sustain California’s economy and quality of life. We invite you to participate!

Call us more more info!
323-349-0661

IID, CAISO settlement promotes local renewable energy development

March 9, 2018

CONTACT: Antonio Ortega (760) 604-1092

IID, CAISO settlement promotes local renewable energy development

Imperial Irrigation District and the California Independent System Operator announced this week the two parties have reached a settlement that ends existing litigation between them.

As a result, more climate-friendly energy from the IID service area can be delivered to the rest of California.

“For IID, this has always been about ensuring basic fairness, a level playing field and protecting our balancing authority and our ratepayers for the sustained benefit of the region,” said Kevin Kelley, IID general manager.

As part of the settlement, CAISO has agreed to upgrade one of IID’s power lines (S-Line) that will allow more electricity to flow from the Imperial Valley to other markets. CAISO has also agreed to do more to help promote geothermal development, a priority for the district, in the Salton Sea Known Geothermal Resource Area.

Both parties also agreed to establish a local coordination working group to address important issues that may arise in the future.

Resolving the dispute gives the parties a common platform to move forward on issues that both agencies care about, Kelley added.

Located in what is considered  the “renewable energy capital of the world” IID can serve as a conduit for renewable energy development in the west, helping California meet its aggressive renewable energy and climate goals while creating added economic development and job opportunities in a region that desperately needs them.

 

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