Bakersfield council directs staff to study utility-scale energy options after CCA presentation

Bakersfield City Council voted March 25 to direct staff to pursue preliminary planning for utility-scale distributed energy resources (DER) after hearing a technical study on Community Choice Aggregation (CCA) and a separate pitch for municipal energy projects.

The council’s action came after a presentation by Barbara Boswell of the California Choice Energy Authority (Cal Choice), which summarized a city-commissioned technical analysis of forming a local CCA and the costs and steps involved. Boswell said the study estimates total startup costs of about $16 million, including roughly $6.8 million in implementation expenses such as staffing, regulatory filings and customer outreach. “We estimate that that upfront cost to be $16 million,” Boswell said during her presentation.

Why it matters: council members framed the discussion as a search for tools that could reduce long-term energy costs, support local resilience and spur economic development. Proponents said municipal energy and DER could help Bakersfield attract industry and lower operating costs for city facilities; skeptics cautioned about startup costs, regulatory uncertainty and the need for broad public outreach.

What presenters said: Boswell outlined the statutory steps to form a CCA, noted program benefits such as local control and the ability to invest revenues in community programs, and warned that rates could be higher or lower than the incumbent utility depending on variable elements such as the Power Charge Indifference Adjustment (PCIA). She warned that while a CCA is technically feasible, market and regulatory conditions mean there will be years when CCA rates may exceed investor-owned utility rates.

Representatives from Wildan (an energy services partner engaged by the city) described complementary options to a CCA: behind-the-meter solar and battery projects, microgrids for large developments, and “spot municipal” or municipal utility models that could provide off-grid energy for industrial or data center customers. Wildan’s presenters highlighted opportunities to develop underused city land for large-scale generation and said such projects can yield deeper margins than a pure CCA model.

Public response and concerns: Michael Turnupseed of the Kern County Taxpayers Association asked why a feasibility report was not more accessible and urged the council to ensure robust public outreach before major decisions. Turnupseed raised the city’s delayed annual financial reports and asked how the city could responsibly pursue large energy projects without current audited financial statements. City staff acknowledged the need for clear outreach and said additional community engagement would be part of any next steps.

Council debate and decision: council members split on the near-term path. Supporters, including Councilmember Smith, emphasized Bakersfield’s acreage and economic-development potential and said municipal energy could help recruit businesses. Skeptical council members raised concerns about vendor presentations, procurement transparency and the scale of needed investment.

Councilmember Smith moved to direct staff to proceed with utility-scale DER implementation planning and return with recommended next steps. The motion passed; the clerk recorded Councilmember Kleman and Councilmember Bashier Tash voting no and Councilmember Weir absent.

What the vote means: the council’s direction does not commit the city to forming a CCA or to specific contracts. Staff said the next steps would include more detailed technical and financial analysis, community outreach, evaluation of financing options (the city anticipates startup costs would likely be financed rather than paid from the general fund) and return-to-council briefings before any binding commitments.

Quotes: “Forming a CCA is starting a new business and as any new business you have upfront costs before you start bringing in revenue,” Boswell said, describing implementation and working capital needs. “We have 6,000 acres of underutilized land,” Councilmember Smith said in support of pursuing municipal energy options, adding that local generation could help attract industry and expand the tax base.

Next steps: Staff will scope preliminary implementation planning for utility-scale DER and report back to the council with a recommended process, anticipated costs, community outreach plans and procurement options. Any later decision to form a CCA, enter contracts, or issue financing would require subsequent council approval.