Agenda packet — Ava Community Energy Executive Committee, September 30, 2022

EBCE is committed to protecting our environment and is proud to be a Certified California Green Business
Executive Committee Meeting
Friday, September 30, 2022
12:00pm
https://us02web.zoom.us/j/998209098
Or join by phone:

Dial(for higher quality, dial a number based on your current location):

US: +1 669 900 6833 or +1 253 215 8782 or +1 346 248 7799 or +1 301 715 8592 or +1 312 626 6799 or 877 853 5257 (Toll Free) or 888 475 4499 (Toll Free) Webinar ID: 998 209 098
Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least 2 working days before the meeting at (510) 906-0491 or [email protected].

If you have anything that you wish to be distributed to the Executive Committee, please email it to the clerk by 5:00 pm the day prior to the meeting.

1. Welcome & Roll Call

2. Public Comment
This item is reserved for persons wishing to address the Executive Committee on any EBCE-related matters that are not otherwise on this meeting agenda. Public comments on matters listed on the agenda shall be heard at the time the matter is called. As with all public comment, members of the public who wish to address the Committee are customarily limited to three minutes per speaker and must complete an electronic speaker slip. The Executive Committee Chair may increase or decrease the time allotted to each speaker.

REGULAR AGENDA

3. Approval of Minutes from June 24, 2022

4. Health-E Communities Partnership (Informational Item)

5. Update to Net Energy Metering (NEM) Policy (Informational Item) Review proposed changes to the Net Energy Metering Policy to include an annual true-up option East Bay Community Energy
Board of Directors Page | 2

6. Integrated Resource Planning (IRP) Update (Informational Item) Informational update on progress in IRP analysis ahead of October meeting in which board must review and approve EBCE’s compliance filing, due November 1

7. Committee Member and Staff Announcements including requests to place items on future Board Agendas

8. Adjournment to October 28, 2022 at 12:00pm
EBCE is committed to protecting our environment and is proud to be a Certified California Green Business
Executive Committee Meeting
Draft Minutes
Friday, June 24, 2022
12:00 pm
https://us02web.zoom.us/j/998209098
Dial(for higher quality, dial a number based on your current location):

US: +1 669 900 6833 or +1 346 248 7799 or +1 253 215 8782 or +1 929 205 6099 or +1 301 715 8592 or 888 475 4499 (Toll Free) or 877 853 5257 (Toll Free) Webinar ID: 998 209 098
Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least 2 working days before the meeting at (510) 906-0491 or [email protected].

If you have anything that you wish to be distributed to the Executive Committee, please email it to the clerk by 5:00 pm the day prior to the meeting.

1. Welcome & Roll Call

Present: Directors: Arriola (Tracy), Mei (Fremont), and Chair Lopez (San Leandro), Excused: Kalb (Oakland), Martinez (Emeryville),
Member Kalb joined the meeting at 12:16pm.

Tom Kelly spoke regarding the Supreme Court’s decision to overturn Roe v. Wade and proposed EBCE not sign any contracts with companies or states that have made it impossible for a woman to get an abortion, such as the contract EBCE has signed with Vistra Energy, a fossil fuel company in Texas. Tom Kelly endorsed the letter that EBCE received from Mr. White regarding pulling the grant from Benioff Children's Hospital and opening up the process so other organizations that address climate change and East Bay Community Energy
Board of Directors Page | 2
energy efficiency could be given an opportunity to apply for that grant money. Tom Kelly also added that EBCE’s JPA requires EBCE to beat PG&E on greenhouse gas emissions, and it has not, and there should be a Board discussion regarding why that is and what can be done to correct it.

REGULAR AGENDA

3. Approval of Minutes from April 29, 2022, May 16, 2022, and May 27, 2022:

Member Kalb joined the meeting at 12:16pm.

Director Arriola motioned to approve the minutes as presented. Director Mei seconded the motion which passed 4/0. Excused: Director Martinez.

5. Joint Rate Mailer & 2021 Power Content (Informational Item) Overview of the contents in the upcoming Joint Rate Mailer Tom Kelly, who has spoken previously about how EBCE is supposed to be better than PG&E on greenhouse gas emissions, but is not, has never received an answer. Tom Kelly believes EBCE is buying renewable power from sites outside California, then taking the renewable energy credits associated with that power and applying it to system power in California, which is dirty, and that is the reason why all other CCAs in Northern California are so much better on greenhouse gas in spite of what their power mix is.

Tom Kelly said this feels like a con, because EBCE says they are doing better than PG&E on renewables, but PG&E’s renewables are carbon-free. Tom Kelly asked for an explanation of why EBCE is three times worse than PG&E on greenhouse gas emissions and hundreds of times worse than other CCAs.

Cynthia Landry spoke regarding the Bright Choice composition and asked what the 40% unspecified is. Cynthia Landry echoed Tom Kelly’s comments and requested EBCE specify what renewables are being talked about. Cynthia Landry liked Chair Lopez’s comments regarding not taking any nuclear. Cynthia Landry asked if EBCE is moving to lower than 40% unspecified next year?
The Committee Discussed:
• Having the mailer that goes out in October be multilingual, with portions in English, Spanish, and written Chinese, and phone numbers to get information in those languages.
• Clarifying information in the mailer that the PCIA is around transmission of energy, which is not part of EBCE’s infrastructure, and that be in bullet points or footnotes in EBCE’s communications with the public.

4. Legislative Update (Action Item)
Approval of Legislative Positions
There were not speakers for public comment.

East Bay Community Energy
Board of Directors Page | 3
Director Kalb motioned to approve staff’s recommended positions on SB 833 and SB 1158. Director Mei seconded the motion which passed 4/0. Excused: Director Martinez.

6. Committee Member and Staff Announcements including requests to place items on future Committee Agendas
Director Mei recently joined the Silicon Valley Leadership Group and several other CCAs in discussing ESG and carbon-free, and hoped they could continue to partner to create awareness.

7. Adjourned at 1:00pm to Friday, July 22, 2022, at noon.

Health-E
Communities
Partnership
Staff Presentation Item 4
Health-E Communities Partnership Goals
● Enhance understanding and evidence based program designs to reduce sources of air pollution that impact the most vulnerable populations (e.g. asthma patients)
● Deploy +1,000 indoor air quality monitors to measure indoor air pollution impacts of natural gas combustion in stove tops, water heats and furnaces
● Design and Deliver home electrification retrofits to participants in air quality monitoring program
● Enhance delivery of world class pulmonary care to high risk populations most impacted by air pollution
Staff Presentation Item 4
Health-E Communities Partnership Overview
1a) Air Pollution and Indoor Air
Quality Research Program Perform a multi year study of the nexus between air pollution, indoor air quality, electrification programs and medical care (2023-2028) 1b) Indoor Air Quality
Monitoring Project
Project to deploy up to 1,000 air quality monitors in homes of high acuity asthma patients to monitor indoor air quality impacts of gas appliances (2023)
1c) Health-E Home
Electrification Retrofit Project
Project to deploy home electrification interventions for indoor air quality study participants
(2023-2024)
1d) Community Asthma Care
grant
Investment to significantly enhance capabilities to deliver frontline asthma care across the East Bay with explicit integration to home and community electrification measures
(2023-2028)
Staff Presentation Item 4
Health-E Communities Partnership: Indicative
Participants/Roles
Program Partners 1a) Air Pollution and
Indoor Air Quality
Research Program
1b) Indoor Air Quality
Monitoring Project
1c) Health-E Home
Electrification Retrofit
Project
1d) Community
Asthma Care grant
Public Health Partner(s) lead co-lead lead
East Bay Community
Energy
co-lead co-funder co-funder co-funder
Building Decarb co-lead participant
Project Delivery Partner deployment lead deployment lead Air Quality Monitoring
Partner
co-lead
Grant/Philanthropy
Partner(s)
co-funder co-funder co-funder
Finance Partner(s) co-funder
Staff Presentation Item 4
Health-E Communities Partnership Actions
● Sept 2022 EBCE Exec Comm: Present Health-E Communities Program Concept to EBCE Executive Committee and seek
direction
● Oct 2022 EBCE Board Meeting: Present Health-E
Communities Program as informational item
● Nov 2022 EBCE Board Meeting: Seek Board Approval to
Proceed with Health-E Communities Partnership
● December 2022 to April 2023: EBCE begins process of
acquiring Health-E Communities partners and development Health-E Communities program agreement(s)
● April 2023: Seek Board approval of Health-E Communities Partnership agreements
● May 2023: Health-E Communities Program Launch
Staff Presentation Item 4
Letter # Location Last Name First Name
1 Alexandria, Virginia  Ryu Allison
2 Bellevue, Washington  Liao Logan
3 Berkeley  Britt Bonnie
4 Berkeley  Dervin Kathy
5 Berkeley  Ferguson Elizabeth
6 Berkeley  Garcia Bogar
7 Berkeley  Lenz Emelia
8 Berkeley  Lieblich Paige
9 Berkeley  Madron Akasha
10 Berkeley  Moore Eli
11 Berkeley  Moran Megan
12 Berkeley  Nussbaum Natalie
13 Berkeley  Redwood Leah
14 Berkeley  Stiller Tanya
15 Berkeley  Taller Dolores
16 Berkeley  Wolfe Saundra
17 Berkeley  Woo Jean
18 Berkeley  Yuan Albert
19 California  K A
20 Davis  Heins Dylan
21 Davis  Jin Ying
22 Davis  Sadler Henry
23 Davis  Villarreal Prisila
24 Hayward  Danos Lawrence
25 Kensington  Behrsin Ingrid
26 Livermore  Marone Sally
27 Oakland  Buysse Clair
28 Oakland  Eisenscher Michael
29 Oakland  Farrow Margaret
30 Oakland  Gassman David
31 Oakland  Griffith Lin
32 Oakland  Harvey Ann
33 Oakland  Kevess Robert
34 Oakland  MacLeod Heather
35 Oakland  Nanavati Shaina
36 Oakland  Park Susan
37 Oakland  Robinson Shina
38 Oakland  Tisdell Nyah
39 Oakland  Weinberger Beth
40 Oakland  Zang‐Rosetti Lea
41 Oceano  Nicole Anastasia
42 Pleasanton  Smith Julia
43 Richmond  greensyndicalist
44 Richmond  Morris Domenichi
45 San Francisco  Carlier David
46 San Francisco  Su‐Ang Rachel
47 San Leandro  Abbott Lawrence
EBCE BOD Public Comment Dossier for 9.21.22 Meeting

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Staff Report Item 5
Staff Report Item 5
TO: East Bay Community Energy Executive Committee
FROM: Kelly Brezovec, Director of Account Services
SUBJECT: Recommendations to Update the Net Energy Metering Policy, Effective April 2023
DATE: September 30, 2022
__________________________________________________________________ Recommendation
Adopt a resolution to Approve the Proposed Update to the Net Energy Metering Policy, Effective April 2023
Background
The initial NEM Policy was adopted on February 21, 2018, followed by an amendment to the NEM Policy to clarify language in the tariff and add an additional step in calculating the annual cash-out for our “Existing NEM” customers on February 20, 2019. At its December 16, 2020 meeting, the Board of Directors adopted an update to the Net Energy Metering (NEM) Policy to include the new communities of Tracy, Pleasanton, and Newark, while otherwise maintaining the existing policy. At the March 17, 2021 meeting, the Board of Directors voted to update the Net Energy Metering Policy to move the majority of NEM customers onto the Standard EBCE NEM program, which pays customers at the wholesale rate for energy.

EBCE’s NEM Policy has always included one major difference from PG&E’s Policy. PG&E, for the most part, has NEM customers on an annual true-up, meaning that customers accrue debt for under-generation and credits for over-generation over the course of a 12-month cycle.

EBCE does not hold on to that debt resulting from under-generation from month to month; rather, if a customer under-generates, EBCE will bill them for their usage. EBCE does carry over-generation credits from month-to-month. Our cycle for over-generation credits, or cash-out, is April to April for all customers.

Due to this timing discrepancy of when customers pay for their net usage, EBCE staff identified that customers who receive a wholesale cash-out may perform better on an annual true-up cycle. This is because customers pay for energy at the retail rate, but receive Staff Report Item 5
compensation at the wholesale rate. If customers have to pay throughout the year and over-generate at the end of the cash-out cycle, they may not be receiving the full retail value of their overgeneration credits. EBCE added a step, internally named the NEM Sweep, in 2019 to resolve this discrepancy and ensure that our NEM customers do just as well financially as they would on an annual true-up cycle.

EBCE staff have found this additional calculation to be burdensome and time intensive. In 2020, 2021 and 2022, there were issues with the NEM Sweep that caused checks and on-bill credits to be delayed until June, or later, creating a poor customer experience. NEM customers are very engaged and there is an uptick in calls regarding cash-outs during the April - June timeframe.

NEM customers who are familiar with PG&E’s annual true-up have expressed a request for an annual EBCE true-up, as well. In 2020, EBCE conducted a survey of 500 NEM customers and found about 45% of customers preferred an annual billing option. With this customer feedback and the challenge of the NEM Sweep, EBCE is proposing to offer an annual true-up cycle for the Standard EBCE NEM customers, giving customers a choice. An annual true-up would result in the same financial leveling as the NEM Sweep calculation.

Discussion
Current Programs and Policy
EBCE offers three different NEM programs, depending on the customer characteristics. The CARE/ FERA NEM program is for low-income customers that are on the CARE or FERA programs. Legacy municipal customers consist of municipal accounts in EBCE’s original jurisdictions that interconnected their systems after EBCE started service. The vast majority (90%) of EBCE NEM customers fall into the Standard EBCE NEM program.

Customers receive monthly credits on their bill for surplus generation that can be used to cover future charges until the annual cash-out period. Monthly settlements are valued as follows based on customer definition, shown in Table 1.

Every April is the cash-out period when customers are paid via bill credit or check for their surplus generation during the previous 12- month cycle. The cash-out amount is calculated based on the NEM program with EBCE. Standard EBCE NEM customers receive a cash-out at PG&E’s Net Surplus Compensation rate, which is the wholesale value of energy.

Standard EBCE NEM customers are also eligible for the NEM Sweep during the annual cash-out period. EBCE will review the financial outcomes of the Standard EBCE NEM Customers that have 1) been billed for retail charges by EBCE in the prior 12 months and 2) held a positive NEM balance ($) in April. EBCE will assess whether these accounts would have had a higher cash-out on an annual NEM service, and if so, issue a credit or check for the difference.

Staff Report Item 5
Table 1: Monthly Bill Credit and Annual Payout Credit Amount by Customer Type Customer Type Monthly Bill Credit per
kWh
Annual Payout Credit per
kWh
Standard EBCE NEM Customer Retail* PG&E’s Net Surplus
Compensation (NSC) value
Legacy Municipal NEM Customer Retail* + $0.01 Retail* + $0.01 CARE/FERA EBCE NEM Customer Retail* + $0.01 Retail* + $0.01 *Equivalent to the generation rate charged for power received from EBCE A large portion of Standard EBCE NEM customers currently receive a higher cash-out than just the NSC rate times their excess generation due to the NEM Sweep calculation. These numbers are indicated in Table 2 below.

Table 2: NEM Statistics for 2022 Annual Cash Out
Number of Standard EBCE NEM Customers 45,300
% Net Generators 32%
% Net Consumers 68%
# of Customers Receiving a Cash-out Only (no
Sweep)
9,000
# of Customers Receiving NEM Sweep 21,600
% Eligible Customers Receiving NEM Sweep 45%
Average NEM Sweep $20
Proposed 2023 NEM Policy
Starting with the 2023-2024 NEM cycle, EBCE staff propose offering an annual NEM true-up option to all Standard EBCE NEM customers and removing the NEM Sweep calculation.

Table 3: Proposed Changes for Standard EBCE NEM customers Current Proposed Monthly
Option
Proposed Annual
Option
Monthly credits at retail rate Yes Yes Yes
Annual cash-out in April at the
Net Surplus Compensation (NSC)
Yes Yes Yes
Staff Report Item 5
Rate
Monthly true-up (customers pay
for debts when they are due)
Yes Yes No
Annual true-up (credits and debits
roll over until annual cash-out in
April)
No No Yes, may be a
payment required to
EBCE or a
check/credit for
over-generation
Annual NEM Sweep calculation
(process to make the financials of
a monthly true-up mimic an
annual true-up)
Yes No; customers that
are concerned about
this potential
difference are able
to choose the annual
true-up option
No
Discussion of Proposed EBCE NEM Policy
Enrollment Timing: On-going
Customers will be able to change their true-up cycle once per year, prior to March 1, with the new plan effective after the April true-up/cash-out. New EBCE NEM customers will default to the monthly true-up and be able to choose their preferred true-up cycle, which will take effect after the next April cash-out. Ongoing NEM enrollments and new NEM move-ins will receive a special NEM welcome kit email to explain their NEM choices.

Customer Communications and Schedule for 2023 Option
EBCE will send, starting in December, at minimum, one letter or postcard and an email to every Standard EBCE NEM customer informing them of the policy change and new option to select an annual true-up.

Customers who received a cash-out benefit from the NEM Sweep will be sent a personalized notice stating how much they received from the 2022 NEM Sweep and indicating they may receive a higher cash-out with the annual true-up option.

Customers will remain on the monthly true-up option unless they select the annual option, which will be available via phone or email conversation with a live customer service representative, and potentially an online web form. Since over 90% of our NEM customers today have an email address on file, we expect to see uptake via web and email.

Customers that switch to the annual true-up option will be required to verify their email address so that EBCE has an up-to-date form of contact, should the customer close their account.

Discussion of CARE/ FERA and Legacy Municipal NEM
Staff Report Item 5
EBCE staff do not propose any changes to the CARE/ FERA and Legacy Municipal NEM programs. These customers are paid at the retail rate + $0.01/kWh for their monthly and annual settlements and do not receive the additional NEM Sweep calculation.

Overview of Bay Area CCA NEM Offerings
Table 4: Overview of Bay Area CCA NEM Program Design
CCA Monthly Credit Rate Annual Cash-Out
Rate
True-up
cycle
Cash-Out Cycle
A Retail + $0.01/ kWh Retail + $0.01/ kWh Monthly Every April B Retail 2X Net Surplus
Compensation (NSC)
rate
Monthly Every April
C Retail + $0.01/ kWh 2X NSC rate Monthly Every April
D Retail + $0.01/ kWh NSC + $0.01/kWh Monthly or
Annual
February (monthly) or
PG&E true-up date
(annual)
E Retail NSC + 25% Monthly or
Annual
Every April
F Retail 3X NSC rate Monthly Every April
EBCE staff have calculated the different cash-out values if we offered variations on NSC plus a premium, but found that this would not solve the timing discrepancy issue of the monthly vs. annual true-up that our NEM Sweep calculation accounts for, since customers that specifically over-generate in the later months of the NEM year, or over-generated in certain billing categories, such as taxes are not included in the cash-out.

These higher value NSC rates would, in theory, provide an incentive for a larger rooftop installation. However, EBCE found that our previous payout plan for new interconnections did not influence customer behavior around NEM installations.

Table 5: Cash-out Calculation Comparisons for 2022 Annual Cash-Out Cash-out value Total cash-outAverage
cash-out
# of Customers
Receiving a Cash-out
# of Customers that
Receive Less than
with an NSC + NEM
Sweep Policy
NSC + NEM Sweep $1.9M $40 31,800 N/A
NSC + $0.01/ kWh $1.65M $35 15,000 23,000
Staff Report Item 5
NSC X 2 $2.7M $56 15,000 21,500
NSC X 3 $4.0M $85 15,000 20,500
We still see 20,500 customers faring worse financially in a policy that provides a higher cash-out value but does not include the NEM Sweep calculation. These customers are part of the 35% of NEM Sweep recipients that were not annual over-generators, but otherwise paid monthly non-energy portions of their bill, such as taxes, or over-generated only at the end of the year.

Financial Implications
Annual True-up Billing
Customers that accrue debt to EBCE over the course of the NEM year will not be billed until April, annually. Figure 1 depicts various scenarios based on the mix of customers that choose the new annual true-up option. If all Standard NEM customers choose the annual option, EBCE could see $3.5 million in outstanding bills in December, mostly credits that customers would use during the winter months, ending with $2.2 million in bills that will go out in March and April. Customers would receive and pay these bills in April and May, restarting the cycle. Most likely is that the total outstanding debt peaks around $1.75 million or lower, assuming half of eligible NEM customers switch to an annual NEM true-up option.

Figure 1: Estimated Delayed Payment if Customers Switch to Annual True-Up Implementation Financial Implications
Staff Report Item 5
EBCE staff are confident that SMUD can smoothly facilitate an annual NEM true-up option, as they currently offer this for Valley Clean Energy, and have included this option in our contract. There may be an additional implementation fee, which EBCE staff expects will be largely covered under our annual task amendment budget.

Attachment
A. NEM Policy Update PPT
Recommendations to
Update the Net Energy
Metering Policy,
Effective April 2023
SEPTEMBER 30, 2022
Attachment Staff Report Item 5A
Background – EBCE and PG&E Policy Review
EBCE’s NEM policy and PG&E’s default annual NEM true-up handle true-up and cash-outs differently:

Standard EBCE
NEM
PG&E’s Annual
NEM
Monthly credits at retail rate for surplus generation Yes Yes Annual cash-out at the NSC rate per kWh for surplus
generation
Yes Yes
Annual true-up for consumption of electricity No Yes
Monthly true-up for consumption of electricity Yes No
Annual true-up for transmission and delivery charges Yes Yes Attachment Staff Report Item 5A
Background
● Staff identified that customers who receive a wholesale cash-out may have a better financial outcome with an annual true-up cycle ○ Customers pay for energy at the retail rate, but receive compensation at the wholesale rate
○ If customers pay throughout the year and overgenerate at the end of the cash-out cycle, they may not be receiving the full retail value of their overgeneration credits ● Staff added a step in 2019, the “NEM Sweep,” to account for this difference
● The NEM Sweep, while effective, is time-intensive, resulting in a delayed cash-out
● Nearly half of NEM customers surveyed in 2020 said they would prefer an annual true-up
Attachment Staff Report Item 5A
Staff Proposal
Offer customers a choice of:

1. A monthly true-up, or

2. An annual true-up in April
And - remove NEM Sweep calculation
Attachment Staff Report Item 5A
Current NEM Policy
EBCE NEM Program Monthly Bill Credit per kWh Annual Payout Credit per kWh Standard EBCE NEM
Customer
Retail* PG&E’s Net Surplus Compensation
(NSC) value
Legacy Municipal NEM
Customer
Retail* + $0.01/kWh Retail* + $0.01/kWh
CARE/ FERA NEM Customer Retail* + $0.01/kWh Retail* + $0.01/kWh *Equivalent to the generation rate charged for power received from EBCE Attachment Staff Report Item 5A
2022 NEM Cash-out: The Numbers
Number of Standard EBCE NEM Customers 45,300
% Net Generators 32%
% Net Consumers 68%
# of Customers Receiving a Cash-out Only (no Sweep) 9,000 # of Customers Receiving NEM Sweep 21,600
% Eligible Customers Receiving NEM Sweep 45%
Average NEM Sweep $20
Attachment Staff Report Item 5A
Proposed NEM Policy Compared to Current
Current Proposed Monthly Choice Proposed Annual Choice
Monthly credits at retail rate Yes Yes Yes
Annual cash-out in April at the Net Surplus
Compensation (NSC) Rate
Yes Yes Yes
Monthly true-up (customers pay for debits
when they are due)
Yes Yes No
Annual true-up (credits and debits roll over
until annual cash-out in April)
No No Yes, may be a payment required to
EBCE or a check/credit for over-generation
Annual NEM Sweep calculation (process to
make the financials of a monthly true-up
mimic an annual true-up)
Yes No; customers that are concerned
about this potential difference are able
to choose the annual true-up option
No
Attachment Staff Report Item 5A
Proposed NEM Policy- Discussion
● Enrollment Timing
○ Customers can change true-up cycle once per year. Change would be effective after next April cash-out
○ Defaulted to a monthly true-up
● Customer Communications
○ Starting in December 2022, EBCE will send a letter and email to all Standard EBCE NEM Customers
○ Customers can select preferred true-up cycle via phone or email by March 1 ○ Ongoing NEM enrollments and move-ins will receive a special NEM Welcome Kit that explains their choices
Attachment Staff Report Item 5A
Financial Implications - Delayed Payment
Attachment Staff Report Item 5A
Next Steps
• Staff propose bringing this to the full Board of Directors in October for discussion and a vote
• Approval in October would provide adequate advance notice to provide customer communications in December and build the new service for April 2023 • Note – the April 2023 true-up will follow the current policy, with the new annual option becoming available for April 2023-March 2024
Attachment Staff Report Item 5A
Thank You!
@PoweredbyEBCE
[email protected]
Questions? Give us a call:
1-833-699-EBCE (3223)
Español
ebce.org/es
中文
ebce.org/cn
11 Attachment Staff Report Item 5A
Additional Slides
12 Attachment Staff Report Item 5A
CCA Comparisons
CCA Monthly Credit Rate Annual Cash-Out Rate True-up
cycle
Cash-Out Cycle
A Retail + $0.01/ kWh Retail + $0.01/ kWh Monthly Every April B Retail 2X Net Surplus
Compensation (NSC)
rate
Monthly Every April
C Retail + $0.01/ kWh 2X NSC rate Monthly Every April
D Retail + $0.01/ kWh NSC + $0.01/kWh Monthly or
Annual
February (monthly) or
PG&E true-up date
(annual)
E Retail NSC + 25% Monthly or
Annual
Every April
F Retail 3X NSC rate Monthly Every April
Attachment Staff Report Item 5A
Other Cash-out Options
● Comparison to other cash-out calculations
○ EBCE staff calculated the difference in cash-outs if customers received NSC + a premium ○ We still see 20,500 customers faring worse financially on monthly true-up when NEM Sweep is not offered
○ Annual true-up provides same financial leveling as NEM Sweep Cash-out value Total cash-outAverage
cash-out
# of Customers
Receiving a Cash-out
# of Customers that
Receive Less than
with an NSC + NEM
Sweep Policy
NSC + NEM Sweep $1.9M $40 31,800 N/A
NSC + $0.01/ kWh $1.65M $35 15,000 23,000
NSC X 2 $2.7M $56 15,000 21,500
NSC X 3 $4.0M $85 15,000 20,500
Attachment Staff Report Item 5A
Staff Report Item 6
Staff Report Item 6
TO: East Bay Community Energy Board of Directors
FROM: Marie Fontenot, Vice President of Power Resources SUBJECT: Update on timeline and process for EBCE’s 2022 Integrated Resource Plan
DATE: September 21, 2022
__________________________________________________________________ Recommendation
Receive an informational update on EBCE’s 2022 Integrated Resource Planning (IRP) process in anticipation of a October review of results and request for Board approval of compliance filing.

Background and Discussion
The IRP proceeding includes two primary components: the biennial study workstream and the mandated procurement workstream. This memo refers only to the biennial study workstream.

The IRP is a long-term planning proceeding intending to evaluate all of the CPUC’s electric procurement policies and programs and the reliability and cost-effectiveness of the CPUC-jurisdictional entities’1 electric supply with the goal of reducing the cost of achieving GHG reductions and other CPUC policy goals. The IRP proceeding looks 10 years forward to determine the least-cost resource mix required to meet these goals while maintaining system reliability.

The IRP also evaluates the contribution of individual entities’ resource portfolios to the State’s greenhouse gas (GHG) emissions. This IRP cycle, the CPUC is requiring each entity to submit distinct portfolios that achieve their proportional share of two alternative statewide electric sector GHG targets. EBCE will report analysis results and proposed resource portfolios that address the question “what are the desired portfolios of resources based on a statewide electric sector goal of achieving (1) 30 million metric tons (MMT) of GHG emissions by 2030; and (2) a maximum of 25 MMT of GHG emissions by 2030.” The inputs and assumptions used 1 In context of IRP requirements, includes Investor Owned Utilities (IOUs), Energy Service Providers (ESPs), and Community Choice Aggregators (CCAs).

Staff Report Item 6
in the 30 MMT and 25 MMT scenario must be consistent with CPUC-assumptions; the required assumptions are discussed below. Entities are also permitted to submit an alternative portfolio that uses different assumptions, provided those assumptions are identified and justification for the discrepancies are described.

All CPUC-jurisdictional entities are required to file and serve their individual IRPs with the CPUC by November 1, 2022. CPUC Decision 22-02-004, issued February 10, 2022, adopted the 2021 IRP Preferred System Plan and established the November filing deadline. An subsequent Ruling, issued on June 15, 2022 established the final load forecasts and GHG benchmarks for the 2022 IRP Plans. The Ruling also clarified that load serving entity filing must include three documents: (1) a Narrative Template, (2) the Resource Data Template which details the resources in each LSE’s proposed portfolio, and (3) the Clean System Power (CSP) Calculator which calculates GHG and other emission results for each LSE’s portfolio. Staff will present the results of the 2022 IRP analysis and the recommended portfolio of resources in the October Board meeting. In this meeting, staff will seek the Board approval of the filing prior to the filing, consistent with the CPUC’s requirement of IRP filings completed by CCAs.

Financial Impact
None. Informational update only.

Attachments
A. Presentation
Integrated
Resource Plan
Update
SEPTEMBER, 2022
Attachment Staff Report Item 6A
Background
2 • Integrated Resources Plan (IRP): a biennial analysis and filing required by CPUC.
• Load serving entities (LSEs) submit long-term procurement plans to the CPUC
• Evaluate LSEs’ ability to contribute to emissions reduction while meeting electricity-related compliance obligations. • CPUC evaluates California’s resource needs for 10 coming years.
• Important: can result in CPUC-mandated procurement
Attachment Staff Report Item 6A
3 Deliverables
CPUC
1) Analyses based on CPUC-prescribed elements & with
EBCE-specified changes
2) Narrative – analyses, process,
results, lessons learned,
procurement targets
3) Resource Data Template –
conforming and preferred
portfolios
4) Clean System Power Calculator
EBCE Board
1) All CPUC materials for review and
approval pre-filing
2) Understand drivers of portfolio
costs
3) Evaluate macro-level resource
ability
4) Identify potential threats to EBCE
0MMT 2030 portfolio; later
develop mitigations
Attachment Staff Report Item 6A
Timeline
4 Date Event
February 2022 Decision Adopting 2021 PSP, Establishing 2022 IRP Schedule April 20, 2022 ALJ Ruling Proposes 2022 IRP load forecasts & GHG benchmarks June 28, 2022 Final load forecasts & GHG benchmark inputs July 15, 2022 Final Clean System Power Calculator (Emission analysis tool) July 15, 2022 Final Filing Requirements and guides published Aug 24, 2022 Final Resource Data Template
Aug – Sept 2022 EBCE performs quantitative analyses, develops portfolios Sept – Oct 2022 EBCE refines portfolio results, prepares filing narrative materials Oct 19, 2022 Presentation to EBCE Board; staff seeks approval to file Nov 1, 2022 IRP filing deadline to CPUC
Attachment Staff Report Item 6A
Analytical Benefits to EBCE
5 • CPUC-coordinated planning promotes a more stable statewide electricity system
• Alignment with CPUC view of the market; identification of specific differences in respective views
• Evaluation of costs & risks of different portfolios under different potential policy futures
• Identify barriers to EBCE’s emission reduction objectives • Open-source software can expand modeling & analytic
capabilities w/in EBCE
• Potential for EBCE to do future modeling in-house
Attachment Staff Report Item 6A
6 Analytical Approach
Capacity
Expansion
Model (CEM)
• Zonal modeling explores the tradeoffs between resource types and their suitability to serve California’s growing electricity needs
• GridPath modeling software optimizes statewide resource additions to lower emissions while still ensuring sufficient capacity on the system to avoid rolling blackouts Production Cost
Model (PCM)
• Hourly dispatch modeling of all generators in state determines price environment which EBCE will be operating into the future
• Captures expected shifts in price patterns that may arise from combinations of increased solar resource on the CA grid, electrification efforts, eventual retirement of Diablo Canyon, etc.

Portfolio
Expansion
Modeling (PEM)
• In the context of the CA energy system modeled above, EBCE optimizes resource procurement over the next 20 years to minimize the cost purchased energy while achieving state-mandated or locally-driven goals Attachment Staff Report Item 6A
7 Modeling Framework
Capacity
Expansion
Model (CEM)
•California Public Utilities Commission (CPUC) requires that all load-service entities (LSEs) submit plans consistent with a 30 million metric tons (MMT) and 25 MMT statewide emissions targets •Staff considers the 25 MMT case to be our “base case”
•EBCE has developed its own case in which capacity concerns keep Diablo and select natural gas-fired plants on the system beyond the retirement dates specified in the CPUC cases
Production Cost
Model (PCM)
•The base case assumes normal hydro conditions and a return to lower natural gas prices •Staff will also look at a case in which constrained hydro availability and potential ongoing natural gas supply disruptions put upward pressure on CA electricity prices
Portfolio
Expansion
Modeling (PEM)
•The base case assumes no expansion of EBCE territory and that all projects are completed on schedule •Staff will explore the impact of adding Stockton / San Joaquin County in 2024 (?) •Staff is also looking at a case in which supply chain disruptions lead to project delays, to understand the magnitude of the market exposure that arises in these cases and consider strategies to mitigate that exposure Attachment Staff Report Item 6A
Framing an IRP
8 Extreme
(high) Prices
EBCE Extreme
Project Delays
EBCE service
territory
expansion
Aisle 1 Aisle 2 Aisle 3
EBCE
electrification
30 MMT grid
emissions *
25 MMT grid
emissions *
Diablo retirement
delayed
O-T-C Gas
retirement
delayed
Stable Prices
Extreme
(low) Prices
Global Supply
Chain / new
resource delays
CPUC Price
Assumptions *
CPUC “base”
portfolio *
* Indicates CPUC requirement
Prices
Variation
Attachment Staff Report Item 6A
Framing an IRP
9 Extreme
(high) Prices
EBCE Extreme
Project Delays
Aisle 1 Aisle 2 Aisle 3
EBCE
electrification
30 MMT grid
emissions *
25 MMT grid
emissions *
Diablo retirement
delayed
O-T-C Gas
retirement
delayed
Stable Prices
Extreme
(low) Prices
Global Supply
Chain / new
resource delays
CPUC Price
Assumptions *
CPUC “base”
portfolio *
Prices
Variation
Delayed
retirements
EBCE service
territory
EBCE load expansion
growth
* Indicates CPUC requirement
Attachment Staff Report Item 6A
Impacts of the IRP
10 IRP-Directed Procurement Trend: More capacity
procurement, more procurement of specific technologies
• 2018 IRP: CPUC ordered 3,300 MW of incremental procurement online in 2021-2023. • 2020 IRP: CPUC ordered 11,500 MW of incremental procurement online in 2024-2026, including 1,000 MW of Geothermal and 1,000 MW of Long-Duration Energy Storage. • 2022 IRP Cycle indicates CPUC interest in Long-Duration Energy Storage (>4 hr) and Off-Shore Wind development.
• IRP Procurement Program proposal could start as early as 2023 with ongoing oversight of LSEs.

Risk that IRP Procurement Displaces EBCE's Resource Portfolio Design • IRP-driven procurement may mandate higher volumes of technology-specific procurement such as geothermal, off-shore wind, energy storage, or other resources than EBCE would select on its own.

Attachment Staff Report Item 6A
Thank You!
@PoweredbyEBCE
[email protected]
11 Questions? Give us a call:
1-833-699-EBCE (3223)
Español
ebce.org/es
中文
ebce.org/cn
Attachment Staff Report Item 6A
Appendix
12 Attachment Staff Report Item 6A

Ava Community Energy Executive CommitteeSeptember 30, 2022

Ava Community Energy Executive Committee
September 30, 2022