Summary – MCE (Marin Clean Energy), one of California’s 25 not-for-profit renewable energy entities, provides electricity to most households and businesses in Marin County, and in three nearby counties, as an alternative to electricity provided by Pacific Gas & Electric Company (PG&E). At the height of the electricity cost market in the fall of 2024, MCE entered into expensive contracts that eventually increased its energy expenses over the prior year by about $200 million — more than 25 percent. This issue prompted the Civil Grand Jury to investigate MCE.
At the height of the electricity cost market in the fall of 2024, MCE entered into expensive
contracts that eventually increased its energy expenses over the prior year by about $200 million
— more than 25 percent. This issue prompted the Civil Grand Jury to investigate MCE. We
found a Board of Directors that rarely asserted its responsibility of governance, and management
that appeared to be taking advantage of this situation. We also found that controls for contract
approval and other internal processes were not being followed. The investigation concluded with
a number of key findings, some of which we summarize here:
(1) MCE’s Board of Directors has not taken a sufficiently active role in the important
decisions affecting the agency — and has failed to systematically review its policies,
performance, and future strategy.
(2) By delegating to the CEO, the Board’s approval authority over hiring of MCE’s
General Legal Counsel, the Board has lost access to adequate independent legal advice
when it is needed.
(3) The energy contracts at the heart of MCE’s business are complex — and Board
members face a considerable challenge to understand the relationship between those
contracts and the renewability of the electricity that MCE provides to its customers.
(4) On multiple occasions, MCE management has been insufficiently transparent with its
Board.
For a link to the full report, click here.