Staff Report Item 14
Staff Report Item 14
TO: East Bay Community Energy Board of Directors
FROM: Marie Fontenot, Vice President of Power Resources SUBJECT: PG&E Modified CAM Agreement (Informational)
DATE: January 18, 2023
__________________________________________________________________ Recommendation
Accept the informational update on PG&E Modified CAM Agreement.
Background and Discussion
East Bay Community Energy (EBCE) is eligible to enter into a bilateral agreement with PG&E to acquire Resource Adequacy (RA) due to EBCE’s load expansion that occurred in 2021, per CPUC Decision 22-05-015 Decision on Modified Cost Allocation Mechanism for Opt-Out and Backstop Procurement Obligations. To address load migration, LSE’s have the option to receive a one-time allocation of RA capacity associated with IOU procurement for D.19-10-001. Due to the time sensitivity of the one-time allocation, EBCE executed on an agreement with PG&E on December 27, 2022. The details are below:
15-year RA agreement with PG&E for EBCE’s share (3.2%) of available capacity from PG&E’s D.19-10-001 resource pool, comprised of lithium-ion battery storage projects.
Price is the Market Price Benchmark for that calendar year, as determined through the Power Charge Indifference Adjustment (PCIA) proceeding.
Fiscal Impact
Estimated neutral fiscal impact since contract price is the Market Price Benchmark for RA.