Operations Board Meeting
September 13, 2023
Item 13
Approve and Authorize the CEO to Execute an Amended and Restated Power Purchase Agreement with SF Jasmine LLC, and any necessary ancillary documents, to increase the size of the energy storage system in an Amount Not to Exceed $187,000,000
About Jasmine Solar + Storage Project
Original PPA
Amended and Restated
Counterparty
SF Jasmine LLC
SF Jasmine LLC
Parent Company
Idemitsu Renewables
Idemitsu Renewables
Product
As-available Solar PV PCC1 renewable energy and dispatch rights of Energy Storage system, including Energy, Renewable Energy Credits, Resource Adequacy Benefits and Ancillary Services.
As-available Solar PV PCC1 renewable energy and dispatch rights of Energy Storage system, including Energy, Renewable Energy Credits, Resource Adequacy Benefits and Ancillary Services.
Delivery Term
12 years
June 1, 2023, through May 31, 2035
10 years
June 1, 2026, through May 31, 2036
Project Name
Jasmine
Jasmine
Contract Capacities
70 MW Solar PV
17.5 MW Energy Storage (Lithium-Ion), 4‐hour Discharge Duration 70 MW Solar PV
64.4 MW Energy Storage (Lithium-Ion), 4‐hour Discharge Duration, Grid-Chargeable Location
Kern County
Kern County
Not to Exceed Amount ($,000)
$79,000,000
$187,000,000
Approval of the Amended & Restated PPA will preserve and enhance the project’s value to 3CE, allowing us to meet our aggressive goal of 100% RPS by 2030, ensuring regulatory compliance, and increasing our energy hedging abilities.
Powering the Future
September 13, 2023
FY 2023-24
Recommended Budget
Agenda
Office Budgets
01 Budget Summary
02 Financial Policies
03 CEO COO
CFO CCO
04 Wrap Up
Recommendation
Committee Discussion
Budget Summary
01 Finance
Fiscal Year
2023-24
Our commitment
3CE is committed to fiscal transparency and continous improvement Our Recommendation
Is structurally balanced while addressing the increasing COE Our Finanical Policies
Provide a foundation and guildance for decsions and financial stabilty
Total Recommended Appropriations: $562,833,448
FY 2023-24Recommended Budget
Total Recommended Appropriations/Revenue: $562,833,448
Credit Rating
Standard & Poor’s Assigned 3CE its ‘A’ Issuer Credit Rating in 2020 The ‘A’ rating results from 3CE’s strong enterprise and financial risk profiles.
The Importance of a Credit Rating
Credit ratings measure the credit risk of an organization; the lower the credit risk, the lower the borrowing costs.
A strong credit rating can lead to lower financial collateral for power purchase agreements (PPAs) and more significant savings in prepay bond issuances and other financing vehicles.
Reassurance to energy suppliers of 3CE’s financial footing and low risk, securing the best collateral thresholds.
Resource Adequacy
Growing difficulty in acquiring sufficient RA volumes.
Western market constraints reveal RA supply deficiency.
RA Market Dynamics
Regulatory limitations affect RA value for renewables.
Energy import restrictions and strategic reserves impact supply.
Regulatory policies increase supply obligations.
Compliance & Costs
Decreased supply, rising demand, and regulatory factors inflate prices.
CCAs struggle with compliance, even while paying high prices. 3CE faced penalties and cost implications due to RA deficiency.
FY 2023-24 Cost Drivers
Resource Adequacy
Growing difficulty in acquiring sufficient RA volumes.
Western market constraints reveal RA supply deficiency.
FY 2023-24 Cost Drivers
Notes: 2024 & 2025 Estimated & RA Expenses captured by calendar year (includes any penalties)
Financial Policies
02 Financial Philosophy
Sustain adequate financial liquidity to meet normal operating and contingent obligations; Ensure a sufficient financial base is maintained to withstand local, regional, national, and global economic impacts; Foster the ability to adjust efficiently to the community’s changing service requirements; Maintain and improve infrastructure and capital assets; Regularly review programs and operational methods to improve processes that result in higher productivity, eliminate repetitive and duplicative functions; Encourage collaboration with other government entities, the private sector, and public-private partnerships where cost and risk are minimized in the delivery of services within 3CE’s service area; Promote sharing of costs and benefits by service users; Ensure the legal use of financial resources through an effective system of internal controls; Support sound financial management by providing accurate and timely information on 3CE’s financial condition; and Provide a framework for the wise and prudent use of debt financing and maintain a good credit rating in the financial community.
FY 2023-24Financial Policies
FY 2023-24Financial Policies
Roles and Functions
Outlines at the highest level the general roles and functions of the CEO, CFO, Audit & Finance Committee, and the Energy Risk Management Committee.
Services & Fund Structure
Defines the fund structure and overarching principals for recommending rates, expenses and net position.
Operating Budget
Comprehensive guidance on the building, managing and reporting on the budget.
FY 2023-24Financial Policies
Net Position
The measurement of overall financial resources
Use of Unreserved Net Position
3CE’s goal is to only use unreserved Net Position as a source to finance one-time investments, reserves, and/or commitments..
Strategic Reserve
Recommended Strategic Reserve Policy equal to twenty-five percent (25%) of budgeted appropriations.
FY 2023-24Financial Policies
Rate Stablization Reserve
Energy Rate Stabilization Reserve equal to twenty (20%) of the budgeted COE, for large fluctuations in the COE Renewable Energy Innovation…
Reserve equal to five percent (5%) of the budgeted COE. For investments in furtherance of the Boards’ goals to accelerate utilization of 100% clean and renewable energy.
Capital Infrastructure Reserve
Capital Infrastructure Reserve sufficient to provide for the operation, routine scheduled maintenance, reasonably anticipated unplanned repair, and ultimate replacement.
Office Budgets
Office of the CEO
Office of the CFO
Office of the COO
Office of the CCO
03 FY 2023-24Office of the CEO
FY 2023-24Office of the CEO
FY 2023-24Office of the CFO
FY 2023-24Office of the COO
FY 2023-24Office of the CCO
Wrap Up
04 Policy Board:Consider supporting to the Policy Board the Fiscal Year 2023-24 Recommended Budget for Central Coast Community Energy (3CE) including updated Financial Policies; and adopt Resolution No. 2023-PB-07 approving cost-based rate adjustments