< 8 LEAN on MCE The Galvin Electricity Initiative launched in 2005. Founder Robert Galvin served for more than 30 years at Motorola, Inc., where he was CEO and chairman when he departed. The idea grew out of the massive blackouts in the northeastern United States and eastern Canada in 2003 that left about 50 million people in the dark. The core is the Perfect Power System, which promotes consumer control over an energy grid rather than ceding control to monolithic utilities. Itâ&#x20AC;&#x2122;s an idea that parallels what could be the ultimate result of community choice aggregation (public power) in California. Marshall released the LEAN white paper in January with the title, â&#x20AC;&#x153;Forming a National Community Choice Aggregation Network: Feasibility, Findings and Recommendations.â&#x20AC;? After submitting the paper to the Galvin Initiative, Marshall and her founding partner in LEAN, Megan Matson, learned that Galvin liked it. That led to an infusion of funds from Galvin to the tune of â&#x20AC;&#x153;a couple of hundred thousand dollars,â&#x20AC;? says Marshall, the executive director of LEAN. â&#x20AC;&#x153;They deďŹ nitely saw the value [of the proposal] because they are very engaged in expanding [community choice] in the Midwest and on the East Coast. It was a great alliance to try and go national.â&#x20AC;? Matson played an important role in getting LEAN out of the starting gate, working with Marshall to accomplish all the tasks needed to form a nonproďŹ t organization.
Matson, LEANâ&#x20AC;&#x2122;s strategy and policy director, is a grassroots political consultant who founded another nonproďŹ t organization, Mainstreet Moms Organize or Bust, which grew out of dissatisfaction with the Bush administration. In 2006, Matson and her organization began investigating climate change and looking for solutions. MCE was an obvious candidate, says Matson, and the group started focusing on outreach and advocacy efforts with the goal of spreading the public power model across the Bay Area, the state and the country. Thatâ&#x20AC;&#x2122;s also the goal at the Galvin Initiative, which â&#x20AC;&#x153;had been researching best practices that really empower consumers and communities to take charge of their energy future,â&#x20AC;? says Kelly; he, along with Marshall and Daniel Douglass, is on the founding LEAN board of directors. Douglass is a principal in Douglass & Liddell, a ďŹ rm that specializes in energy law issues. (McGlashanâ&#x20AC;&#x2122;s seat will be ďŹ lled eventually, and the board will expand to seven members.) â&#x20AC;&#x153;We have concluded that there are [some] basic market transformations that need to occur,â&#x20AC;? says Kelly. â&#x20AC;&#x153;One is empowering consumers through pricing, net metering and other policy reforms that value consumer participation in the marketplace. The second area we identiďŹ ed was that cities are really a critical partner for both utilities and for clean-power procurement. We have been working on policies that empower communities. Community choice aggregation start-
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wake of a $4 million PG&E campaign to oppose MCE. And thatâ&#x20AC;&#x2122;s in addition to the tens of millions PG&E spent trying to sabotage public power with Proposition 16, which voters soundly defeated. And the utility isnâ&#x20AC;&#x2122;t relaxing. It currently has 11 submissions before the California Public Utilities Commission aimed at dinging MCE. â&#x20AC;&#x153;Because the gateway to CCA is the local political government,â&#x20AC;? says Marshall, â&#x20AC;&#x153;you need the political will and the political courage to step up to the plate. Charles personiďŹ ed that.â&#x20AC;? In talking with others interested in starting a public power program, Marshall says, â&#x20AC;&#x153;We often say, â&#x20AC;&#x2DC;Who is your Charles McGlashan? You have to ďŹ nd your Charles to get this thing rolling.â&#x20AC;&#x2122;â&#x20AC;? The core concept of LEAN posits a public power model supported by three legs: political, ďŹ nancial and technical. In addition to ďŹ nding politicians willing to take the slings and arrows of naysayers, supporters of prospective public power agencies obviously need the technical expertise to enter a cutthroat marketplace currently dominated by investor-owned utilities. A nascent public power agency also faces a ďŹ nancial hurdle at startup because it produces no revenue until it secures and distributes a power stream to customers. Although a loose alliance of public power advocates existed before LEAN, the organization is the ďŹ rst of its kind to bring together the knowledge and practical experience each public power agency has accumulated and cross-pollinate for future potentialâ&#x20AC;&#x201D;a vision
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ed with the Cape Light Compact in Massachusetts, spread to Ohio and we helped to pass a [public power law] in Illinois in 2009. When we saw that Marin had been successful in California, it attracted our interest. â&#x20AC;&#x153;We were looking for policies that would result in not just incremental transformation but dramatic transformation.â&#x20AC;? McGlashan, who shared this vision, said maintaining the status quo shouldnâ&#x20AC;&#x2122;t be an option. His promotion of the SMART rail system, his work to enact bag bans in Marin and his championing of MCE attest to his vision. Of all the programs he supported and fought for, MCE could have the longest lasting impact on the widest area and the largest number of people. In the LEAN white paper, Marshall writes, â&#x20AC;&#x153;In some areas, local legislative support for CCA is growing. But there exists a dearth of political leadership to support CCA expansion. Current economic conditions are an inďŹ&#x201A;uencing factor, but lack of awareness of the CCA model, its local beneďŹ ts and how the program works are also barriers.â&#x20AC;? A strong and resilient politician, McGlashan was more than window dressing in the push to create public power. Even as MCE cleared hurdle after hurdle, even after it repaid startup loans and secured reďŹ nancing based on a sound business model, critics continued to attack MCE and lobbed vicious personal attacks at McGlashan. It got rough for councilmembers promoting the idea of public power in their cities, especially in the
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