CA Review CKM
Meeting Date:
To:
From:
Staff Contact:
Subject:
Jan. 18, 2022
Mayor and City Council
Scott Chadwick, City Manager
Jason Haber, Intergovernmental Affairs Director
[email protected], 760-434-2958
Clean Energy Alliance Update
Recommended Action
Receive an informational report from Clean Energy Alliance Executive Director Barbara Boswell on the Clean Energy Alliance’s operations and performance.
Executive Summary/Discussion
The Clean Energy Alliance is a community choice energy joint powers authority that began serving electric utility customers within the cities of Carlsbad, Del Mar and Solana Beach in May 2021. Community choice energy programs allow local governments to purchase their own power, and to choose how it is generated. The cities of Escondido and San Marcos have now joined the Clean Energy Alliance to begin receiving service in 2023.
This item will present an informational report summarizing the agency’s operations and performance to date, potential member agency expansions to occur in 2022, and an overview of the alliance’s 2022 operating plans, rates and priorities.
Fiscal Analysis
This item has no fiscal impact.
Next Steps
None.
Environmental Evaluation
Receiving a presentation does not qualify as a "project" under the California Environmental Quality Act under CEQA Guidelines Section 15378, because it does not result in a direct or reasonably foreseeable indirect physical change in the environment.
Public Notification
This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to scheduled meeting date.
Exhibits
None.
Jan. 18, 2022 Item #7 Page 1 of 1
Tammy Cloud-McMinn
From:
Sent:
To:
Subject:
[email protected]
Tuesday, January 18, 2022 1 :59 PM
City Clerk
Item 7 1/18/22 Clean Energy Alliance
Hello Carlsbad Mayor and City Council,
All Receive -Agend a Item# 2
For the Information of the:
CITY COUNCIL
Date J/J-g/)a..cA ~ cc _:::::-
CM ./°'ACM _/[)CM {3) /
1. Prior to a possible 27 January 2022 CPUC decision on proposed changes to the SDG&E Net Energy Metering Program,
I urge the Clean Energy Alliance to make a timely submission of comments in support of protecting rooftop solar power generation and expanding clean energy access.
2. Question:
If the CPUC adopts the proposed changes to the SDG&E Net Energy Metering Program, what will be the changes to the Clean Energy Alliance NEM rates and Personal Impact Option?
3. Question: .
If the CPUC adopts the proposed changes to the SDG&E Net Energy Metering Program, and if rooftop solar adoption slows, what fiscal and clean energy sourcing impact would this have on the Clean Energy Alliance?
Thank you for your kind attention.
Best regards,
Carina Chiang
Carlsbad resident
CAUTION: Do not open attachments or click on links unless ou recognize the sender and know the content i safe.
1 Clean Energy Alliance Update
City of Carlsbad City Council
January 27, 2022
CLEAN
ENERGY
~ llllillll
ALLIANCE
Clean Energy Alliance Update
•Current Status of Program
•Service Expansion
•Rate Update
•Credit Amendment
1/27/22 2
CLEAN
ENERGY
ALLIANCE
Current Status of Program
•Participation Rate –~ 92%; 60,000 Service Accounts
•Primary Reason for Opt-Out –Automatic Enrollment
•Green Impact 100% Renewable Energy Enrollments -~370
•~ 170 Residential
•~ 100 Non-Residential
•Clean Impact 50% Renewable Energy Opt Downs -~110
•~100 Residential
•~10 Non-Residential
•Average 250 calls per month to Call Center
•50% Calls re: Billing Inquiry
31/27/22
CLEAN
ENERGY
ALLIANCE
Service Expansion
•Escondido & San Marcos Joined CEA
•April 2023 Service Launch
•Implementation Plan Amendment Approve 12/30/21
•Filed with California Public Utilities Commission 12/30/21 •Anticipate CPUC certification by 3/20/22
•Evaluating Oceanside, San Clemente, & Vista Joining
•2024 Service Launch
41/27/22
CLEAN
ENERGY
ALLIANCE
Impact of Escondido & San Marcos
Escondido
San
Marcos
Current
CEA
Expanded
CEA
Total Accounts 56,348 36,820 60,000 153,168
Annual Energy (MWh)538,000 353,000 600,000 1,491,000
1/27/22 5
Service expansion will add approx. 93,168 accounts and more than double annual electric demand CLEAN ENERGY
ALLIANCE
Rate Update
•Board Approved Rate Adjustment Effective 1/1/2022
•Maintains 2% generation cost savings compared to SDG&E •Takes into account Exit Fees paid to SDG&E
•Rates to be further refined effective 2/1/2022 to ensure 2% savings is maintained
61/27/22
CLEAN
ENERGY
ALLIANCE
CEA vs SDG&E Generation & Exit Fees
1/27/22 7
Solana
Beach
Carlsbad
& Del Mar
0.12 0.1
0.08 0.06
0.04 0.02
0 SDGE
CEA Generation Rate Comparison -Proposed Rates
{
SDG&E
-----------------------------------------------~E~~~---- CEA
2017 Vintage
■Generation Rate ■ Exit Fees
CEA
Generation
Rate >
CEA
2020 Vintage
CLEAN
ENERGY
ALLIANCE
Projected Residential Bill Comparisons
for Clean Impact -2020 Vintage PCIA
(Carlsbad & Del Mar)
1/27/22 8
* 3.3% Avg Bill Increase
* 2021 delivery rates used in comparisons. 2022 delivery rates are likely to increase but are not known at this time.
Rate: Residential DR Current Rates
Eff 3/1/21
CEA SDG&E
Generation $ 30.13 $ 45.80 $
SDG&E PCIA & FF $ 14.64 $
Total Generation Related Costs $ 44.77 $ 45.80 $
SDG&E Delivery * $ 71.26 $ 71.26 $
TOTAL AVERAGE MONTHLY BILL $ 116.03 $117.06 $
GENERATION COST SAVINGS -2.25%
TOTAL BILL SAVINGS -0.88%
Proposed Rates
Eff 1/1/22
CEA SDG&E
37.75 $ 49.64
10.90 48.65 $ 49.64
71.26 $ 71.26
119.91 $ 120.90
-1.99%
-0.82%
% Change
CEA SDG&E
8.67% 8.38%
3.34% 3.28%
CLEAN
ENERGY
ALLIANCE
Projected Residential Bill Comparisons
for Clean Impact Plus-2020 Vintage
PCIA (Carlsbad & Del Mar)
1/27/22 9
* 3.3% Avg Bill Increase
* 2021 delivery rates used in comparisons. 2022 delivery rates are likely to increase but are not known at this time.
Rate: Residential DR Current Rates
Clean Impact Plus Eff 3/1/21
CEA SDG&E
Generation $ 30.13 $ 45.80
Clean Impact Plus Premium $ 0.35
SDG&E PCIA & FF $ 14.64
Total Generation Related Costs $ 45.12 $ 45.80
SDG&E Delivery* $ 71.26 $ 71.26
TOTAL AVERAGE MONTHLY BILL $ 116.03 $117.06
GENERATION COST SAVINGS -1.48%
TOTAL BILL SAVINGS -0.88%
$
$
$
$
$
$
Proposed Rates
Eff 1/1/22
CEA SDG&E
37.75 $ 49.64
0.35 10.90
49.00 $ 49.64
71.26 $ 71.26
120.26 $ 120.90
-1.29%
-0.53%
%Change
CEA SDG&E
8.60% 8.38%
3.65% 3.28%
CLEAN
ENERGY
ALLIANCE
Projected Residential Bill Comparisons
for Clean Impact -2017 Vintage PCIA
(Solana Beach Customers)
1/27/22 10
* .3% Avg Bill Decrease
* 2021 delivery rates used in comparisons. 2022 delivery rates are likely to increase but are not known at this time.
Rate: Residential DR Current Rates
Eff 3/1/21
CEA SDG&E
Generation $ 30.13 $ 45.80 $
SDG&E PCIA & FF $ 16.78 $
Total Generation Related Costs $ 46.91 $ 45.80 $
SDG&E Delivery* $ 71.26 $ 71.26 $
TOTAL AVERAGE MONTHLY BILL $ 118.17 $117.06 $
GENERATION COST SAVINGS/PREMIUM 2.42%
TOTAL BILL SAVINGS 0.95%
Proposed Rates
Eff 1/1/22
CEA SDG&E
37.75 $ 49.64
8.75 46.50 $ 49.64
71.26 $ 71.26
117.76 $ 120.90
-6.33%
-2.60%
% Change
CEA SDG&E
-0.87% 8.38%
-0.35% 3.28%
CLEAN
ENERGY
ALLIANCE
FY 21/22 Budget vs Updated
Projections
1/27/22 11
Reflects rates effective 2/2/22 and current power supply costs 70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0 Revenue
CEA Budget vs Current Projection
--Expenses Reserve Contribution Cumulative Reserves & Net Surplus
■ Budget ■Current Projections CLEAN
ENERGY
ALLIANCE
Updated Financial Forecast
1/27/22 12
Reflects rates effective 2/2/22 and current power supply costs Includes Escondido & San Marcos April 2023 Launch
•Rates sufficient to
recover costs over
forecast period
•FY 21/22 Shortfall
due to short-term
power supply costs
•Shortfall addressed
through JPMorgan
credit line increase
•Cost of credit &
repayment reflected
in projection
•Expenses lower
based on forward
energy prices
160,000,000.00
140,000,000.00
120,000,000.00
100,000,000.00
80,000,000.00
60,000,000.00
40,000,000.00
20,000,000.00 --FY 21/22
Revenue
-■ .I ■
FY 22/23 FY 23/24 FY 24/25
■Expenses ■ Reserve Contribution ■Cumulative Reserves & Net Sur plus • FY 25/26
CLEAN
ENERGY
ALLIANCE
Forward Price Curve of Energy
1/27/22 13
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
Jan-22Feb-22Mar-22Apr-22May-22Jun-22Jul-22Aug-22Sep-22Oct-22Nov-22Dec-22Jan-23Feb-23Mar-23Apr-23May-23Jun-23Jul-23Aug-23Sep-23Oct-23Nov-23Dec-23$/MWhSouthern California Energy Prices (SP 15) Feb-21 Jun-21 Sep-21 Dec-21
Power Supply Cost
Certainty through Hedge
Contracts
For Existing Load:
•90% 2022
•65% 2023
•40% 2024
By Year End to include
Escondido & San Marcos
CLEAN
ENERGY
ALLIANCE
JPMorgan Credit Line Increase
•$9.00MM increase –to available $15.00MM
•Board approved 1/13/22
•Includes contingency funds related to service expansion -$3.00MM •Term remains same –1/31/2026
•Interest Rate converts from LIBOR to SOFR (Secured Overnight Financing Rate)
•Sample Interest Rate calculated based on SOFR –3.60%
•Credit fully obligation of CEA
•No recourse in event of default to member agencies
141/27/22
CLEAN
ENERGY
ALLIANCE
Questions/Discussion
1/27/22 15