SSDA Today - Fall/Winter 2016 - 20
NEWS AND NOTES
Small Schools
Engage
Battle Over
Utility Rates
BY LISA SALISBURY
LEGISLATIVE ADVOCATE
SAN DIEGO COUNTY OFFICE OF EDUCATION
S
mall school districts all across California have been experiencing huge utility rate increases over the past few
years prompting important legislative action that started
among districts in San Diego County. Gina Potter, the Assistant
Superintendent for Business in Lemon Grove School District
in San Diego County joined with colleagues across her county
in a coalition of more than 40 districts, mostly small, to take
on the powerful utility industry. Because school districts have
few options for increasing revenue in response to increased
operational costs, the unanticipated, unannounced surge in utility costs directly undermine the fiscal recovery of schools and
targeted objectives of the Local Control Funding Formula (LCFF).
For instance, the San Diego county school districts estimate that they experienced on average a 39% increase in
electricity costs in 2014-15, for an estimated year-over-year increase
of about $30 million for all county districts. More importantly, this
means that the electricity cost increases consumed an estimated
19% of the school districts' 2014-15 increase to their LCFF base
grants. This kind of cut to funding is particularly unsustainable for
small school districts, and impedes their ability to achieve the main
objective of the LCFF to improve services for students.
Another effect of these rate increases is that school districts
have become apprehensive about implementing new solar projects due to the threat to the economic viability from proposed
changes to solar rate structures. Currently, the only mechanism
available to school districts to protect their investments in solar
and thwart efforts to substantially increase electricity rates is
to intervene in proceedings before the California Public Utilities
Commission (CPUC), but school districts - especially small
districts - are in no position to front legal fees of $150,000 to
$300,000 for legal and rate expert services that are necessary
to intervene in CPUC proceedings.
The Coalition therefore worked with Assembly Member Shirley
Weber (D) San Diego and Senator Ben Hueso (D) San Diego to
20
SSDA TODAY | FALL/WINTER 2016
introduce bills that would provide some economic relief.
Assembly Member Weber introduced AB 2120 to ensure
that school districts can obtain reimbursement for costs
associated with intervening in proceedings before the CPUC.
The Coalition also approached Senator Hueso to run legislation that would establish a separate customer class rate for
school districts to recognize their unique electricity usage
profile and inability to increase revenue in response to higher
operational costs caused by factors beyond their control,
which emerged as SB 1041.
Although these bills face strong opposition from utilities
companies, they have passed through every committee so
far. AB 2120 has survived with minor amendments and will
next be heard in the Senate Appropriations Committee in
August. During its most recent hearing before the Assembly
Utilities and Commerce Committee, however, Senator Hueso
had to take significant amendments to SB 1041 or the bill
would not have passed through committee. After heavy lobbying from the utilities, several committee members became
uncomfortable with the new proposed rate structure. Their
concern centered on whether schools, particularly those
served by municipal utilities, would actually be charged
higher rates under the proposed cost-causation methodology. The bill, as it will be amended, now calls for a study on
school electricity rates. Specifically, the amended bill would
require the CPUC to consider the effects of establishing a
rate for electric service specific to public elementary schools,
taking into consideration (1) the extent to which the average electric bills paid by schools will increase or decrease
and (2) the consistency between establishing such a rate
and other statutory obligations and state policies. While a
study delays relief for schools, it may be a necessary step
in order to establish a rationale for a separate rate structure
in the future.
Table of Contents for the Digital Edition of SSDA Today - Fall/Winter 2016
Executive Director's Column
New Federal Guidance on Transgender Bathroom Access
List of Initiatives Headed to November Ballot Long and Diverse
Ballot Measure Wild Card: Gov. Jerry Brown
What Every Leader Needs to Know about Technology: Education Innovation Alliance
Is Your Compensation “Creditable” Towards Retirement? New CalSTRS Regulations Seek to Further Clarify the Answer
Super Strong: The Extraordinary Nature of Leadership Resilience
News and Notes
Advertiser's Index
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