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After CCA study and municipal‑energy presentations, Bakersfield council directs staff to study utility‑scale distributed energy resources
Summary
Following presentations from Cal Choice and private energy partners about CCAs, municipal utilities and microgrids, the council directed staff to pursue planning and preliminary analysis for utility‑scale distributed energy resources while stopping short of committing to a CCA launch timetable.
City staff and outside consultants presented two related but distinct options for Bakersfield’s energy future on March 25: forming a community choice aggregator (CCA) and pursuing municipal energy projects (utility‑scale distributed energy resources, microgrids and hydrogen systems).
Cal Choice (Barbara Boswell) presented a technical study that estimated startup costs for a Bakersfield CCA at roughly $16 million (about $6.8 million in implementation costs and the balance for working capital, security and initial power purchases). Boswell said the study assumed an initial opt‑out rate of about 10% and noted that CCA competitiveness versus the incumbent utility (PG&E) will vary year-to-year, in part because of the power‑charge indifference adjustment (PCIA) exit fee. “We estimate the upfront cost to be $16 million,” Boswell said, adding that in some years the CCA could be more expensive for customers and in others it could offer savings.
Separately, consultants from Wildan and partners described municipal energy pathways — behind‑the‑meter projects, municipal or “spot” utilities, microgrids, battery energy storage systems and hydrogen development — that could allow the city to reduce long‑term operating costs, create revenue streams and support economic development. Presenters noted Bakersfield faces relatively high utility rates and has underused land that could host utility‑scale solar, storage and hydrogen production; they offered to perform a preliminary analysis at no cost to the city, with a memorandum of understanding and staff coordination.
Public and council reaction: Public commenters and some council members urged caution and more time for outreach, pointing to late financial reports and the need for public education about bill impacts. Other council members highlighted the potential economic development benefits, including sites for data centers, industry or large commercial users that face high energy costs. Council members asked detailed operational and financing questions — about franchise fees, how CCAs affect city revenue, financing of startup costs, staffing and whether a CCA is required to pursue municipal energy projects.
Council action: Council Member Smith moved to direct staff to pursue preliminary implementation planning for utility‑scale distributed energy resources (DER), decoupling that work from a final commitment to a CCA launch; the motion passed with Council members Kleman and Bashier Tash voting no and Council member Weir absent. The action directs staff to return with further analysis, a timeline and recommended next steps.
Why it matters: The decision authorizes staff to analyze municipal energy opportunities that could affect rates for businesses and residents, the city’s capital planning, and economic development recruitment. It stops short of committing the city to a CCA or to specific projects but opens a path to more detailed feasibility and community engagement work.
What’s next: Staff will scope the preliminary DER analysis, which may include economic modeling, land‑use considerations, financing options and community outreach; a future report will come back to council with recommendations before any binding commitments are made.
