What should municipal utilities do about climate change?

Banning is one of a few municipal electric utilities in the State. Before awareness of the impact of coal powered electricity on climate change and before certain regulations, our City purchased a minute percentage of a coal-powered electric generating plant and entered into two long term contracts to purchase coal powered electricity. 70% of our electricity is coal powered. If the cap and trade system is instituted our rates would have to be substantially raised. What can we do? Lacking growth at this time, the more our residents use renewable energy, the higher the rates have to go. We have contracts for renewable energy that fill the remainder of our electric portfolio. We are ahead of most utilities. But even if a magic wand were to be waved and somehow we could get out of the ownership and long term contracts, where is the transition plan that will take us to reliable 24/7 alternatives? Without a doubt Southern California has great potential for using renewable energy but who has the transition plan to allow that to happen?