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Pioneer Community Energy presents expansion study; recommends October 2027 launch for Chico

Chico City Council · October 1, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Pioneer Community Energy told Chico council an impact study shows expansion into Chico can be financially viable but resource adequacy constraints mean a 2027 launch is more feasible than 2026. Council members asked about solar customers, financial risk to the city and the relationship with Butte Choice Energy.

Pioneer Community Energy representatives told the Chico City Council on Oct. 1 that an impact‑assessment study finds adding Chico could double Pioneer’s size and still produce savings for customers compared with PG&E.

"We have saved our customers since 2018 over $85,000,000 and we're projecting another 24,000,000 this year," Pioneer presenter Lisa Delavi said during the presentation to Mayor Coolidge and council. Pioneer said the expansion would increase its service from about 200,000 meters to roughly 400,000 meters and estimated retail sales would grow from about 2,000,000 to 4,000,000 megawatt‑hours.

The study identified resource adequacy — the regulatory requirement to pre‑procure capacity above peak load — and the cost of RA procurement as the principal challenge. Gina Stassy Vanicore, Pioneer’s director of communications, said that when Pioneer combined conservative assumptions, "We can make this work," but recommended delaying launch to October 2027 rather than 2026 to avoid costly summer procurement periods.

Council members asked practical questions about the transition. A council member asked whether rooftop solar customers would be affected; Stassy Vanicore said Pioneer currently serves thousands of solar customers and "everything just rolls right on over," noting small premium payments for net generators or net consumers. Another council member asked whether Chico’s general fund would be on the hook if revenue projections underperformed; Pioneer replied no, saying the only cost to the city was funding the impact assessment study.

Pioneer described next steps: additional due diligence over the next two months, briefing the Pioneer board in December, and returning to Chico in January or February to ask the council to vote on joining. If council approved, Pioneer said it would file an implementation plan with the CPUC by the end of March; CPUC approval could allow Pioneer to begin purchasing power by the following June.

The presenters said they had checked regulatory counsel about Butte Choice Energy and emphasized the city cannot be a member of two CCAs at once, explaining the timing needed to terminate existing membership and then vote to join Pioneer. Council took no immediate action beyond questions and directed staff follow‑up.

Looking ahead, Pioneer said staff continue to evaluate whether a phased rollout (residential first, then commercial/ag) may be necessary and that they have issued an RFP to assess resource availability. The council requested additional information to evaluate customer impacts, governance and a financial comparison to remaining with PG&E.