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Study: City-Run Electric Utility Could Face ‘Financial Jeopardy’

9/23/2017

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By Chris Jennewein
A new study by economists at Point Loma Nazarene University concludes that a city-run electric utility would face “financial jeopardy.”

The study by Dr. Lynn Reaser and her team at the Fermanian Business and Economic Institute analyzed a report about the feasibility of San Diego becoming a “Community Chose Aggregator,” or CCA, to buy and resell power to residents.

California has adopted this program, which permits cities and counties to purchase or generate electricity for residents and businesses located within their boundaries, taking over from a privately-owned utility.

​“A CCA poses large risks to the city, which could jeopardize its financial stability and its ability to meet other funding priorities. This risk is particularly problematic in that the CCA is unlikely to achieve its objectives in terms of renewable energy, rate savings for customers, or economic benefits,” according to the study released earlier this week.
Read the full article on Times of San Diego...
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