Voluntary Allocation
and Market Offer
(VAMO)
MAY 2022
What is VAMO?
• In May of 2021, the CPUC issued a Decision (D.21-05-030) that proposed the allocation of products (RPS, RA, Carbon Free) to all LSEs in IOU service territories as part of the Power Charge Indifference Adjustment (PCIA) process • This means that because EBCE customers pay the PCIA, those customers are entitled to a proportional share of the products that they are paying for through the PCIA
• The Voluntary Allocation and Market Offer (VAMO) is the process for PG&E to allocate a proportional share of their renewable portfolio to EBCE and other LSEs within their service territory
2 VAMO - Renewable Product
• EBCE would be allocated generation from PG&E’s eligible renewable portfolio proportional to the amount of electricity sales that EBCE has in PG&E territory
• This is similar in design to the annual allocation that EBCE receives from PG&E large hydro resources
• Cost for product would be the Market Price Benchmark (MBP) which is an annual, established REC price determined through the PCIA process and based on market executed transactions
3 VAMO - Renewable Product
• The VAMO allocation is split between short-term and long-term contract allocation.
Short-term reflects a 1-year term and long-term reflects PPAs with 10 years or longer remaining
• For long-term, term length would match the contract term length of the allocated long-term projects with delivery starting in 2023
• The annual volumes through 2030 available to EBCE from PG&E through the allocation:
4 MWh LT ST
2023 1,283,572 272,103
2024 1,299,909 248,135
2025 1,335,291 241,524
2026 1,330,724 197,953
2027 1,325,452 175,474
2028 1,323,801 171,652
2029 1,316,050 131,873
2030 1,311,159 129,780
VAMO – Timeline
• PG&E formally notified LSEs of VAMO allocation amounts on 5/16 • Deadline to formally respond with an attestation to accept is June 10th • Contract execution will take place June-July '22
• VAMO allocation process is expected to be finalized by October '22 • Staff is currently evaluating the allocation amounts to determine what to accept in relation to existing portfolio hedges and compliance requirements related to SB350/RPS
5 SB350 and Long-Term RPS
• SB350: Is a Senate Bill that requires EBCE and other LSE’s in the state to have 65% of their RPS generation come from contracts of 10 years or longer to be compliant with the CA Renewable Portfolio Standard (RPS)
• The annual RPS percent is the state’s renewable content target that increases annually to 60% in 2030
• This is measured across a compliance period, the current compliance period (CP4, 2021-2024) is the first applicable CP • Most of the renewable generation from VAMO would come from PG&E contracts of 10 years or longer and would count towards EBCE’s SB350 requirement 6
Next Steps
• As part of VAMO EBCE must elect the amount of the allocation that would be received with deliveries starting in 2023 and anticipates accepting up to the full allocation for long-term renewable energy • This election can be made in 10% increments of EBCE’s share and is due on June 10th, 2022
• The renewable generation would count as EBCE renewable content on the PCL, and towards EBCE’s RPS requirement including SB350 and not count as PG&E’s renewable content
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