Navigant Consulting to help California’s Local Government Commission let cities and counties choose their electric provider

CHICAGO, Oct. 14, 2003 — Navigant Consulting Inc. has been selected by California’s Local Government Commission (LGC) to provide technical assistance to a demonstration project that will help implement the state’s “Community Choice Aggregation” law that was enacted in September 2002.

Under this law, cities, counties and joint power authorities are empowered to purchase power and to act as electric service providers. This means they can develop their own energy supply strategies (including what percentage will come from renewable energy) to provide electricity to their local communities and residents.

The LGC was recently awarded $694,000 by the California Energy Commission and the U.S. Department of Energy to work with selected communities as a first step in helping them procure power for their residents and businesses. The demonstration project is co-sponsored by the League of California Cities and the California State Association of Counties.

“The LGC demonstration project is designed to explore how Community Choice Aggregation can help reduce energy consumption through local efficiency and conservation programs, while increasing the use of renewable energy resources and other emerging technologies, and stimulating local economies,” said Bryan Griess, Managing Director of Navigant Consulting. “The underlying intent is to give local communities more choice in determining their source of power.”

California’s law was based on successful models in other states, including Ohio and Massachusetts, which allow local communities to gain control over energy costs and sources of power. The California version protects existing customers/ratepayers of utilities by requiring that Community Choice Aggregator customers pay their fair share of the costs associated with the Department of Water Resources long-term power contracts, as well as some prior power costs. Moreover, the California experiment is tied to its newly adopted Renewable Portfolio Standard, which specifies that retail electricity providers must include a certain percentage of renewable energy in their energy supply mix.

“As Congress and the nation grapple with a need for a comprehensive energy policy to help reach the nation’s energy security and reliability goals–including a standard for renewable energy use–California is moving aggressively ahead,” said California Energy Commissioner John Geesman. “For example, our recently adopted Renewable Portfolio Standard targets a goal to increase the renewable energy component of California’s power procurement to 20 percent by 2017. This LGC demonstration project seeks to double that goal to 40 percent of power from renewable energy. This is a worthy benchmark–and we believe it can be done.”

“Community Choice Aggregation is an exciting opportunity for cities and counties to determine if providing power to all classes of consumers within their boundaries can bring new benefits of lower rates, a higher level of renewable resources in their power portfolio and local energy efficiency and conservation programs,” said Judy Corbett, Executive Director of the Local Government Commission.

For more information about California’s Local Government Commission’s Community Choice Aggregation Demonstration Project, contact Tom Crooks, Navigant Consulting 916.631.3200 or email tcrooks@navigantconsulting.com.

About Local Government Commission

The Local Government Commission is a nonprofit, nonpartisan, membership organization comprised of nearly 1000 local elected officials, city and county staff, planners, architects and community leaders. It is dedicated to assisting local governments in establishing and nurturing the key elements of livable communities: a healthier human and natural environment, a more sustainable economy, an actively engaged populace, and an equitable society.

About Navigant Consulting

Navigant Consulting, Inc. (NYSE: NCI – News) is a specialized independent consulting firm providing litigation, financial, restructuring, energy and operational consulting services to government agencies, legal counsel and large companies facing the challenges of uncertainty, risk, distress and significant change. The Company focuses on industries undergoing substantial regulatory or structural change and on the issues driving these transformations. More information about Navigant Consulting can be found at www.navigantconsulting.com.

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