San Diego Business Journal

The Solana Beach city government approved a three-year deal to buy energy that does not come from sources that create greenhouse gases.

The move comes as other California cities take the same step, and as San Diego lawmakers move to put their city on the same path.

The Solana Beach City Council, meeting on Jan. 9, gave its city manager the go-ahead to sign a 36-month deal with The Energy Authority (or TEA) to buy greenhouse gas-free energy, as an alternative to that supplied by San Diego Gas & Electric Co. The deal runs from 2019 to 2021.

TEA is a Jacksonville, Florida-based nonprofit entity owned by public power companies.

The average cost for electricity would be $3.65 per megawatt hour, according to a city manager’s report to the council.

Under a best-case scenario — where there is ample hydroelectric power and Solana Beach gets more partners to make a purchase — electricity may cost $3.19 per megawatt hour. It would be $3.75 per megawatt hour in a worst-case scenario. The three-year deal makes prices more stable, the report said.

The city’s financial model anticipates greenhouse gas-free resources will cost an average of $3.25 per megawatt hour in 2019 and $3.94 per megawatt hour in 2021.

In San Diego, Mayor Kevin Faulconer plans to take a step toward buying renewable energy as early as February, when he plans to introduce a resolution to the San Diego City Council to create a joint powers entity — an entity separate from the city — to buy clean energy. Faulconer plans to invite the county and local cities to join the joint powers entity.

The San Diego City Council’s Environment Committee is expected to take up the matter on Thursday at 1 p.m.