Status
A Proposed Decision (PD) was published by the CPUC on October 10, 2023. The PD strikes a reasonable balance between stakeholder positions on capacity allocation, queue management, BioMAT cost recovery, and process. The PD is a positive outcome for CCAs on the issue of PPP cost recovery and in its support for additional renewable resources that improve the reliability of California’s grid.
Next Steps
On October 30th, CalCCA will submit comments in support of the PD. 3CE will provide an update to the board once a Final Decision is approved and will prepare to participate in the program to help meet procurement goals and support member agencies.
Integrated Resource Planning (IRP)
Issue
Integrated Resource Planning (IRP) is the CPUC’s greenhouse gas (GHG) reduction planning program.
LSEs must submit IRPs every two years demonstrating their planned future procurement will fall within GHG emissions benchmarks, contribute to sector-wide GHG targets, and help maintain grid reliability.
Previous IRP cycles have produced the three procurement mandates, which applied to 3CE and other CCAs. All LSEs, including 3CE, submitted their most recent IRPs in November 2022.
Status
On October 5, 2023, the Administrative Law Judge (ALJ) overseeing the IRP proceeding issued a ruling seeking 2023 Preferred System Plan (PSP) and Transmission Planning Process (TPP) portfolios. The ruling recommends a 25 million metric ton (MMT) Core Portfolio as the PSP and transmits a model for the California Independent System Operator (CAISO) to study in its 2024-2025 TPP. 3CE’s 2022 portfolio comports with the CPUC’s ruling and exceeds the 25 MMT GHG reduction. As part of its work, the CAISO will study the transmission resources and costs necessary to plan for the potential future retirement of fossil-fueled resources as their economics decline.
The ALJ ruling also addressed a request by two stakeholders to extend the Long Lead Time resource deadline given in the procurement mandates, stating that if an extension is granted, the CPUC should order additional procurement of 2,000 megawatts (MW) of Net Qualifying Capacity of renewable or zero-emissions resources by 2028.
Next Steps
Opening comments on the ruling and associated portfolios are due by November 13, 2023, with reply comments due by December 1, 2023. 3CE will continue to advocate for procurement targets based on the realities of California’s interconnection process issues, which have created significant delays in bringing new projects online.
Energy Resources Recovery Account (ERRA) Compliance
Issue
Energy Resource Recovery Account (ERRA) compliance filings are made annually by the Investor Owned Utilities (IOUs) for the approval of costs associated with Utility Owned Generation (UOG) operations and fuel procurement, Portfolio Allocation Balancing Account (PABA) entries, economic dispatch of electric resources, and contract administration. IOUs are required to demonstrate compliance with CPUC decisions and the California Public Utilities Code. All CCAs participate jointly in these proceedings
through CalCCA to ensure unbundled customers are treated equitably in IOU rate-setting decisions.
PG&E Status
On October 6, 2023, PG&E submitted a Motion to Strike CalCCA’s witness testimony on the grounds the testimony addressed out-of-scope issues. In its testimony, CalCCA criticized PG&E’s handling of excess RA in 2022, specifically its failure to offer excess RA resources to other Load Serving Entities as required.
In its motion, PG&E maintained that it complied with CPUC orders relevant to the proceeding.
CalCCA filed a response on October 23, 2023, arguing that its testimony is within the proceeding’s scope and that PG&E’s ERRA filing must evaluate IOU compliance with all procurement-related orders, including its obligation to make reasonable efforts to sell excess RA to LSEs needing RA for compliance purposes.
SCE Status
CalCCA also responded to an SCE’s Petition for Modification on October 11, 2023. CalCCA has argued that it is correct for bundled customers to pay back now-departed customers for their current use of banked RECs. SCE argues this practice results in bundled customers paying twice. However, the practice requires bundled customers to pay now-departed customers what they are owed using Renewable Energy Credit prices in the year in which they are used.
Next Steps
3CE will continue to advocate for just treatment of unbundled customers and hold the IOUs accountable for following CPUC rules.
Energy Resources Recovery Account (ERRA) Forecast
Issue
ERRA forecast applications are filed annually by IOUs to look ahead at energy procurement-related revenue requirements, including the allocation of costs across PCIA vintages. CCAs participate through CalCCA to ensure: (1) accuracy of forecast account balances, rates, and cost calculations; (2) proper attribution of PCIA vintage; (3) proposer attribution between bundled and unbundled customers; (4) appropriateness of IOU proposals within the context of an ERRA forecast proceeding.
PG&E Status
PG&E submitted its ERRA update on October 17, 2023. Overall, PCIA rates are forecasted to increase slightly from figures cited in PG&E’s initial filing due to a decrease in energy prices. RA and RPS benchmark increases dampened the effect on energy prices, but overall ended up in a net increase to forecasted PCIA rates.
SCE Status
SCE filed its update on October 13, 2023, showing PCIA forecast rates decreasing since its initial filing.
High RA and RPS benchmarks offset reduced energy prices, resulting in a net decrease.
On October 27, CalCCA commented on two issues in the SCE update. SCE argued that RECs before 2019 have no value to the PCIA as they have already been paid by bundled service customers. However, CalCCA pointed out that because many of those customers have since departed bundled service, they should be credited for these resources through a lowering of their PCIA charge. The second issue is SCE’s application of a lower Market Price Benchmark to energy storage discharge instead of the expected on-Page 150 of 368 peak market price. Batteries are generally deployed at times of higher grid stress and higher cost. If the ALJ agrees with CalCCA’s argument, it would constitute a nine-figure reduction in total PCIA recovery costs that would directly benefit all customers.
Next Steps
Comments on PG&E’s October updates are due on November 1. The CCAs will continue to review the work presented by the IOUs to ensure the just treatment of both bundled and unbundled customers.
Staff Report Item 5
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Juan Lopez, Director of Finance
SUBJECT: Receive the Treasurer’s Report for the period October 1, 2022, through August 31, 2023 DATE: November 8, 2023
RECOMMENDATION:
Receive the Treasurer’s Report for the period October 1, 2022, through August 31, 2023.
SUMMARY:
For the eleven months ending August 31, 2023, operating revenues totaled $412.6 million, while operating expenses totaled $364.9 million for a net operating income of $47.7 million. Non-operating revenue added an additional $8.8 million, tallying a positive change in net position of $56.5 million.
Revenues are in line with the budget. Expenditures are below budget due to lower-than-budgeted costs for energy, energy programs, personnel, and professional services. These positive results for the eleven months are instrumental for the remainder of the fiscal year and fiscal year 2023-24, as higher energy costs and resource adequacy compliance purchases materialize.
FISCAL IMPACT:
There is no financial impact by receiving this report.
ATTACHMENT(S):
1. August 31, 2023 Treasurer’s Report
Compiled Financial Statements 1
Compiled Budgetary Comparison Schedule 6
Budget Variance Commentary 9
Financial Dashboard 10
Investment Summary 11
Table of Contents
TREASURER REPORT
Fiscal Year to Date
As of August 31, 2023
1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Central Coast Community Energy
Management is responsible for the accompanying financial statements of Central Coast Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of August 31, 2023, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
Central Coast Community Energy’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
September 25, 2023
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com
Current assets
Cash and cash equivalents 191,831,154 $
Accounts receivable, net of allowance 32,434,691
Accrued revenue 25,308,798
Other receivables 3,852,972
Loan receivable 187,201
Prepaid expenses 14,441,951
Deposits 6,222,329
Restricted cash 294,000
Investments 59,166,955
Total current assets 333,740,051
Noncurrent assets
Deposits 23,182
Loan receivable 1,520,797
Lease asset, net of amortization 1,454,437
Capital assets, net of depreciation and amortization 576,691 Total noncurrent assets 3,575,107
Total assets 337,315,158
Current liabilities
Accrued cost of electricity 45,295,679
Accounts payable 1,468,293
Other accrued liabilities 8,055,400
User taxes and energy surcharges due to other governments 1,660,019 Lease liability 298,423
Security deposits - energy suppliers 6,501,030
Total current liabilities 63,278,844
Noncurrent liabilities
Security deposits - energy suppliers 9,131,250
Lease liability 1,192,729
Total noncurrent liabilities 10,323,979
Total liabilities 73,602,823
Net investment in capital assets 539,976
Restricted for security collateral 294,000
Unrestricted 262,878,359
Total net position 263,712,335 $
NET POSITION
As of August 31, 2023
STATEMENT OF NET POSITION
CENTRAL COAST COMMUNITY ENERGY
ASSETS
LIABILITIES
OPERATING REVENUES
Electricity sales, net 411,782,768 $
Liquidated damages 750,000
Other income 84,826
Total operating revenues 412,617,594
OPERATING EXPENSES
Cost of electricity 341,280,198
Contract services 9,119,486
Staff compensation 5,587,060
Other operating expenses and incentives 8,515,586
Depreciation and amortization 371,281
Total operating expenses 364,873,611
Operating income (loss) 47,743,983
NONOPERATING REVENUES (EXPENSES)
Interest and investment returns 7,354,731
Grant revenue 1,450,969
Financing costs (47,906)
Nonoperating revenues (expenses) 8,757,794
CHANGE IN NET POSITION 56,501,777
Net position at beginning of period 207,210,558
Net position at end of period 263,712,335 $
Eleven Months Ended August 31, 2023
AND CHANGES IN NET POSITION
STATEMENT OF REVENUES, EXPENSES
CENTRAL COAST COMMUNITY ENERGY
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 426,598,980 $
Receipts from liquidated damages 897,000
Other operating receipts 84,826
Payments to suppliers for electricity (343,489,617)
Payments for other goods and services (17,127,348)
Payments for staff compensation (5,914,460)
Payments of taxes and energy surcharges to other governments (7,728,549) Net cash provided by operating activities 53,320,832
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Principal payments received of loan receivable 292,002
Grant revenue 1,450,969
Net cash provided by non-capital
financing activities 1,742,971
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments of lease liability (234,949)
Payments to acquire capital assets (504,893)
(739,842)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 6,247,040
Proceeds from investment sales 98,511,957
Purchase of investments (117,348,673)
Net cash provided (used) by investing activities (12,589,676) Net change in cash and cash equivalents 41,734,285
Cash and cash equivalents at beginning of year 150,390,869 Cash and cash equivalents at end of period 192,125,154 $ Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) 191,831,154 $
Restricted cash 294,000
Cash and cash equivalents 192,125,154 $
Eleven Months Ended August 31, 2023
STATEMENT OF CASH FLOWS
CENTRAL COAST COMMUNITY ENERGY
Operating income (loss) 47,743,983 $
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation and amortization expense 371,281
(Increase) decrease in:
Accounts receivable, net 14,672,909
Accrued revenue (7,146,854)
Other receivables (1,622,091)
Prepaid expenses (14,133,532)
Deposits 2,071,601
Increase (decrease) in:
Accrued cost of electricity 5,221,097
Accounts payable (120,918)
Other accrued liabilities 44,271
User taxes and energy surcharges due to other governments (281,945) Security deposits - energy suppliers 6,501,030
Net cash provided by operating activities 53,320,832 $
CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
Eleven Months Ended August 31, 2023
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
6 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Central Coast Community Energy
Management is responsible for the accompanying special purpose statements of Central Coast Community Energy (a California Joint Powers Authority) which comprise the budgetary comparison schedule and a supplemental budgetary comparison schedule for the period ended August 31, 2023, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of the Authority.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
Central Coast Community Energy’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
September 25, 2023
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com
2022/23 YTD
Budget (Amended)
2022/23 YTD
Actual
2022/23 YTD
Budget Variance
(Under) Over
2022/23 YTD
Actual / Budget %
2022/23 Annual
Budget (Amended)
2022/23 Budget
Less Actual
2022/23 Budget
Remaining /
Budget %
REVENUES AND OTHER SOURCES
Electricity sales 422,593,000 $ 419,505,169 $ (3,087,831) $ 99% 463,110,000 $ 43,604,831 $ 9% Uncollectible accounts (6,875,000) (6,271,432) 603,568 91% (7,500,000) (1,228,568) 16% Net revenue - electricity 415,718,000 413,233,737 (2,484,263) 99% 455,610,000 42,376,263 9% Investment and miscellaneous income 5,672,000 7,439,557 1,767,557 n/a 6,187,000 (1,252,557) n/a Total revenues and other sources 421,390,000 421,423,294 33,294 100% 461,797,000 40,373,706 9% EXPENDITURES AND OTHER USESCurrent Expenditures
Cost of energy 342,491,681 360,556,000 (18,064,319) 95% 403,427,000 60,935,319 15% Energy programs (incentives and grants) 14,593,000 7,342,890 (7,250,110) 50% 15,920,000 8,577,110 54% Data manager 2,638,414 2,645,000 (6,586) 100% 2,975,000 336,586 11% Utility service fees 1,658,000 1,626,723 (31,277) 98% 1,808,000 181,277 10% Staffing 8,425,000 5,587,060 (2,837,940) 66% 9,191,000 3,603,940 39% Professional services 3,040,000 1,882,596 (1,157,404) 62% 3,317,000 1,434,404 43% Legal services 1,705,000 1,048,894 (656,106) 62% 1,860,000 811,106 44% Marketing and customer enrollment 872,000 553,464 (318,536) 63% 951,000 397,536 42% Other general & administration 3,299,000 1,965,687 (1,333,313) 60% 3,599,000 1,633,313 45% Total current expenditures 396,793,000 365,137,409 (31,655,591) 92% 443,048,000 77,910,591 18% Other Uses
Capital outlay 203,000 104,766 (98,234) n/a 203,000 98,234 n/a Total other uses 203,000 104,766 (98,234) n/a 203,000 98,234 Total expenditures and other uses 396,996,000 365,242,175 (31,753,825) 92% 443,251,000 78,008,825 18% Surplus (Deficit) $ 24,394,000 $ 56,181,119 $ 31,787,119 $ 18,546,000 $ (37,635,119) -203% Reserves at end of reporting period: Held for working capital 46,800,000 $ Held for reserves - cash and cash equivalents 140,331,154 Held for reserves - investments 59,166,955 Total 246,298,109 $
CENTRAL COAST COMMUNITY ENERGY
SUPPLEMENTAL BUDGETARY COMPARISON SCHEDULE
Eleven Months Ended August 31, 2023
CCA Program Surplus/(Deficit)
per budgetary comparison schedule: 56,181,119 $
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:
Add back GASB 87 lease amortization not in operating budget 187,045 Subtract depreciation expense (371,281)
Add back capital asset acquisitions 504,894
Change in Net Position 56,501,777 $
REVENUES, EXPENSES AND CHANGES IN NET POSITION
CENTRAL COAST COMMUNITY ENERGY
BUDGET RECONCILIATION TO STATEMENT OF
Eleven Months Ended August 31, 2023
Budget Item YTD Variance Comment
Electric Sales Revenue (0.7%) Sales revenue includes revenues actually billed to customers as well as estimated customer usage during the reporting period that is not yet billed.
Cost of Energy (5.0%) Variances in this category are typically due to (1) timing difference between projected and actual REC deliveries, (2) variance from actual to anticipated market prices, and (3) variance from actual to expected volume used by customers. Cost of energy includes scheduling coordinator fees for budget purposes only.
Staffing (33.7%) Staffing expenses are under budget due to the timing of new hires.
Professional Services (38.1%) This category includes accounting, IT, technical and other consultants.
Legal Costs (38.5%) This category includes outside legal costs for regulatory and energy procurement needs.
Marketing and customer enrollment (36.5%) Variance is mostly due to the lower than anticipated costs of recent customer enrollments.
Data Management Services (0.2%) These fees non-discretionary and are charged on a per customer basis.
Utility Service Fees (1.9%) These are PG&E and SCE fees charged on a per customer basis.
Other General & Administrative (40.4%) This category includes occupancy costs, industry membership dues, and other general and administrative costs.
Energy and Related Programs (49.7%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items
CENTRAL COAST COMMUNITY ENERGY
October 1, 2022 through August 31, 2023
9
$7.1
$0.2
Act
Bud
$70.7
$55.2
$52.2
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget $413.2
$415.7
$455.6
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual (T48/T8) 415 407 429 406 370 383 362 399 389 424 442 Budget 453 425 424 431 393 432 396 419 426 442 456 435
0 50
100
150
200
250
300
350
400
450
500
CUSTOMERS
SALES VOLUME
442 GWh
STD MARGIN
$7.1M (17%)
Δ in NET ASSETS
$5.1M
REVENUE
$43.7M
Cumulative YTD Electricity Sales
Cumulative YTD Direct Margin
(Electricity Sales less Cost of Energy)
Data Definitions:
CUSTOMERS: Count of active customers from Calpine.
REPORTED / SALES VOLUME: Best available estimate of actual meter volume. Currently based on T+8 SQMD Report and T+48 when available.
REVENUE: Total Operating Revenue, net of uncollectible, (excludes Miscellaneous and Interest income).
NON-OP REV: Other uses, primarily Interest Income
ELECTRICITY SALES: Sales from electricity (net of uncollectible).
STD MARGIN: Electricity Sales less cost of energy (Forecasting & scheduling included in Cost of Energy to match budget) ACTUAL: Same as sales volume above
BUDGET: Volumes from FY22/23 budget
Monthly Sales Volume (GWh)
Financial Dashboard: August 2023
Margin %
CUSTOMERS
457,000
ACTIVE
August revenue of $43.7M accounts for 442
GWh in net retail consumption.
Year-to-date electricity revenue is $413.2M
compared to an amended budget of
$415.7M. YTD Direct Margin (defined as
Electricity Sales less Cost of Energy) of
$70.7M is ahead of amended budget by
$15.5M.
The chart to the right shows volume
comparison to budgeted volume.
The charts below display cumulative
revenue and margin $ vs budget.
26%
41%
23%
37%
46%
16%
Res
Com
Ag
YTD Month
25%
38%
21%
39%
43%
16%
Res
Com
Ag
YTD Month
Revenue $43.7
C.O.E. $35.6
OpEx $2.9
Net Income $5.1 16.6%
0.6%
Act
Bud
Margin $
10
Return of Investments YTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CASH AND CASH EQUIVALENTSRiver City Bank - Money Market and other Interest Earning AccountsFunds Invested - Average Balance $ 68,793,882 $ 70,230,463 $ 70,636,473 $ 68,570,477 $ 76,819,998 $ 92,274,506 $ 105,080,118 104,647,869 $ $ 111,614,272 $ 114,000,514 $ - 119,614,629 $Gains/Losses/Interest $ 2,171,578 $ 85,008 $ 94,651 $ 119,286 $ 123,533 $ 137,627 $ 205,218 $ 240,392 $ 257,694 $ 273,188 $ 302,124 $ 332,859 Average APY 1.48% 1.62% 2.03% 2.16% 2.15% 2.67% 2.76% 2.94% 2.94% 3.18% 3.34%INVESTMENTSRiver City Bank - Treasury-indexed productsFunds Invested - Average Balance $ 40,162,814 $ 45,259,882 $ 55,127,902 $ 47,699,367 $ 47,828,254 $ 42,893,075 $ 42,856,284 $ 42,594,899 $ 42,768,287 $ 32,732,944 $ 47,754,493 $ - Gains/Losses/Interest $ 1,931,788 67,213.37 146,549.22 207,805 214,163 186,551 167,504 148,003 185,195 177,344 206,535 $ 224,925 Average APY 2.01% 3.89% 4.52% 5.39% 4.68% 4.69% 4.14% 5.22% 4.98% 7.57% 5.65%RBC GAM / Principal Financal/ Schwab/ ChaseFunds Invested - Average Balance $ 75,380,564 $ 75,641,706 $ 75,948,593 $ 76,212,285 $ 76,458,827 $ 76,851,697 $ 77,101,019 $ 77,341,109 $ 77,675,387 $ 77,988,923 $ 78,339,918 $ - Gains/Losses/Interest $ 3,111,835 143,733.97 261,142.30 306,886.17 266,301.86 246,542.46 392,869.54 252,509.11 240,089.34 334,278.08 316,486.41 $ 350,995 Average APY 2.29% 4.14% 4.85% 4.19% 3.87% 6.13% 3.93% 3.73% 5.16% 4.87% 5.38%
CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2022 through August 31, 2023
11
Staff Report Item 6
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: CEO Report
DATE: November 8, 2023
STAFFING UPDATE
Griffin Boyle joined the Energy Programs team in October as an Energy Programs Analyst. Born and raised in Petaluma, California, Griffin moved north after high school to attend Western Washington University where he earned a degree in Energy Policy and Management with an Economics minor. He has a background in home weatherization and electrification as a project coordinator where he also worked to raise awareness of energy efficiency programs.
POWER SUPPLY UPDATE
On October 16, 2023, 3CE issued a Request for Offers (RFO) to install batteries at existing natural gas facilities. The RFO responds to the Policy Board’s direction to reduce emissions at existing generation facilities while also providing stable and lower-cost Resource Adequacy to meet regulatory obligations.
Offers were received at the end of October, and staff are currently reviewing the responses.
PROPERTY OWNERSHIP PRINCIPLES
3CE is pursuing property acquisition for the San Luis Obispo (SLO) satellite office, as the current office’s lease expires in March 2024. Staff are following the principles previously approved by the Operations Board in its search for a new SLO office and intend to explore ownership as the preferred path over continued leasing. The long-term financial benefit of owning over leasing is the major driver for this direction, which is appropriate given that 3CE expects to have a permanent presence in SLO. Within the next several months, staff will bring forward a recommendation to purchase property for a satellite office in SLO, and within the next 12 months, will bring forward a recommendation to purchase property for an agency headquarters. More information will be provided as these efforts move forward.
PREPAY UPDATE
On October 26, 2023, 3CE successfully issued $647 million in bonds to prepay energy procurement for four Power Purchase Agreements (AES, Ormat, Cosco, and Rabbitbrush). In June 2023, the Policy Board approved moving forward with a prepay transaction, setting a minimum target of 10% savings. The market was incredibly chaotic given recent treasury volatility and world events; nevertheless, the agency exceeded the 10% target and issued bonds at an 11.38% savings, approximately $5 million annually. This accomplishment creates a roadmap for future transactions and positions 3CE to deliver those savings directly to our customers. Prepay transactions are scheduled to begin in April 2024.
ATTACHMENT(S):
1. Contract list under $200k
CCCE Contracts < $200k
Vendor Total Engagement Amount From To Service Scope Remarks 1 ADP Global $13,810 8/18/2023 As needed Master agreement between 3CE and vendor providing payroll support to the agency. 2 Daniel Keen Consulting $17,900 11/1/2023 3/30/2024 Facilitation and change management support to 3CE's CEO and Board of Directors. 3 DocuSign $7,400 10/31/2023 10/31/2024 1-year subscription renewal service used for sending and executing agreements between 3CE and external parties.
Staff Report Item 7
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Mary Federico, Billing Operations and Rates Analyst SUBJECT: Receive an Update on the Rate Design Request for Proposal (RFP) DATE: November 8, 2023
RECOMMENDATION:
This provides the Operations Board an update on the selection of a rate design consultant from the recently held RFP and the proposed timeline for the project.
BACKGROUND:
On August 21, 2023, 3CE issued an RFP to contract a rate design consultant to complete a territory-wide Cost of Service (COS) study and rate design for calendar years (CYs) 2025 through 2027 and provide operational and rate support. The COS study and rate design for the next three years is a vital component of the budget development process.
DISCUSSION/ANALYSIS:
3CE received three proposals on September 13, 2023, in response to the Rate Design Consultant RFP.
The three vendors were Energy and Environmental Economics, Inc. (“E3”), MRW & Associates, LLC, and NewGen Strategies and Solutions, LLC (“NewGen”). Potential vendors were evaluated based on their qualifications, experience, pricing, demonstrated capacity to fulfill Scope of Work (SOW) as outlined, and 3CE’s Local Preference Policy. NewGen was selected based on their extensive experience and qualifications, how they addressed the SOW and the provided pricing.
Work will begin immediately upon execution of the negotiated agreement. Newgen will analyze the performance of the prior 2022-2024 COS rate design and subsequent rate changes in the PG&E territory.
Simultaneously, 3CE and NewGen will create a forecasted revenue requirement for CYs 2025-2027 using forecasted load, expenses, and reserve policies. Once the revenue requirement is complete, NewGen will finalize the COS study and rate design.
The COS study and rate design will be examined using two scenarios: (1) COS rate design for PG&E and SCE territories separately and (2) all 3CE territories combined. 3CE staff will also work with NewGen to incorporate rate tariffs added since the last study and analyses on the future implementation of the Solar Billing Plan, also known as Net Billing Tariff.
Staff anticipates presenting the COS study, rate design, and analysis to the Policy and Operations Boards in the spring and summer of 2024. NewGen will also consult 3CE in the development of a plan for real-time pricing (RTP) implementation. The RTP Plan will be presented to the Policy Board for approval in Q1 of 2024 prior to submission to the California Energy Commission in April 2024.
FISCAL IMPACT:
The total amount payable by 3CE to NewGen over three fiscal years under the agreement will not exceed $392,500. Funding for the first year of the agreement is included in the Fiscal Year 2023-24 Adopted Budget.
CONCLUSION:
3CE selected NewGen for rate design consulting services. Staff anticipates presenting the COS study, rate design, and analysis to the Policy and Operations Boards in the spring and summer of 2024.
ATTACHMENT(S):
1. COS Timeline
2. NewGen Agreement
Attachment 1 – Cost of Service (COS) Project Timeline
COS Study & Rate Analyses November 2023 - February 2024 •Kickoff Meetings in November with 3CE staff and NewGen. •Development of revenue requirements for CYs 2025 - 2027. •NewGen updates COS model and completes scenario analysis. •NewGen completes analysis on Net Billing Tariff (NBT) rate design and consults in the development of the Load Management Standards (LMS) Compliance Plan. •Staff presents on the Cost of Service study, LMS Compliance Plan, and NBT rate design at the Policy Board meeting in February.
COS Rate Design February 2024 - June 2024
•NewGen develops the COS rate design for CYs 2025-2027. •Staff delivers the LMS Compliance Plan in compliance with California Energy Commission requirements.
•Staff presents COS rate design to the Policy and Operation Boards at the meetings in May and June.
General Rate Support November 2023 - September 2026
•NewGen provides 3CE regulatory and state energy market trend monitoring and reporting throughout the project.
•NewGen evaluates and updates current and forecast 3CE rate competivieness for each rate schedule for each IOU rate change.
Attachment 2 – NewGen Agreement Draft
CENTRAL COAST COMMUNITY ENERGY
STANDARD SERVICES AGREEMENT
This Agreement is made by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and NewGen Strategies & Solutions, LLC (hereinafter “CONTRACTOR”), a Rate Consulting business located at 225 Union Blvd. Ste. 450, Lakewood, CO 80228. 3CE and CONTRACTOR may be individually referred to herein as “Party” or collectively as “Parties.”
In consideration of the mutual covenants and conditions set forth in this Agreement, the Parties agree as follows:
1. GENERAL DESCRIPTION
1.1. 3CE hereby engages CONTRACTOR to perform, and CONTRACTOR hereby agrees to perform, the services described in Exhibit A in conformity with the terms of this Agreement. The goods and/or services are generally described as Rate Design Consulting and Support.
2. PAYMENT PROVISIONS
2.1. 3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B, subject to the limitations set forth in this Agreement. The total amount payable by 3CE to CONTRACTOR under this Agreement shall not exceed the sum of $392,500.
3. TERM OF AGREEMENT
3.1. The term of this Agreement is from the date of execution until December 31, 2026 unless sooner terminated pursuant to the terms of this Agreement. This Agreement is of no force or effect until signed by both the CONTRACTOR and 3CE, with 3CE’s execution to be last in time.
CONTRACTOR may not commence work under this Agreement before 3CE signs this Agreement.
3.2. 3CE reserves the right to cancel this Agreement, or any extension of this Agreement, without cause with thirty (30) days written notice, or with cause immediately.
4. SCOPE OF SERVICES AND ADDITIONAL PROVISIONS
4.1. The following attached exhibits are incorporated herein by reference and constitute a part of this Agreement:
4.1.1.Exhibit A: Scope of Services
4.1.2.Exhibit B: Payment Terms
4.1.3.Exhibit C: Procedures for Unauthorized Release of Covered Information
5. PERFORMANCE STANDARDS
5.1. CONTRACTOR warrants that CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors performing services under this Agreement are specially trained, experienced, competent, and appropriately licensed to perform the work and deliver the services required under this Agreement and are not employees of 3CE or immediate family of an employee of 3CE.
5.2. CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors shall perform all work in a safe and skillful manner and in compliance with all applicable laws and regulations. All work performed under this Agreement that is required by law to be performed or supervised by licensed personnel shall be performed in accordance with such licensing requirements.
5.3. CONTRACTOR shall furnish, at its own expense, all materials, equipment, and personnel necessary to carry out the terms of this Agreement, except as otherwise specified in this Agreement. CONTRACTOR shall not use 3CE premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement.
6. PAYMENT CONDITIONS
6.1. Prices shall remain firm for the initial term of the Agreement and, thereafter, may be adjusted annually as provided herein. 3CE does not guarantee any minimum or maximum amount of dollars to be spent under this Agreement.
6.2. Negotiations for rate changes shall be commenced, by CONTRACTOR, a minimum of ninety days (90) prior to the expiration of the Agreement. Rate changes are not binding unless mutually agreed upon in writing by 3CE and the CONTRACTOR.
6.3. Invoices shall be submitted monthly on a form acceptable to 3CE and provide sufficient detail, as determined by 3CE, of services rendered for the invoiced period.
6.4. 3CE shall certify the invoice for payment in either the amount requested, or in such other amount as 3CE determines is due in conformity with this Agreement. Invoices shall be certified and paid within 45 days of submission to 3CE.
7. TERMINATION
7.1. During the term of this Agreement, 3CE may terminate the Agreement for any reason by giving written notice of termination to the CONTRACTOR at least thirty (30) days prior to the effective date of termination. Such notice shall set forth the effective date of termination. In the event of such termination, the amount payable under this Agreement shall be reduced in proportion to the services provided prior to the date of termination.
7.2. 3CE may cancel and terminate this Agreement for good cause effective immediately upon written notice to CONTRACTOR. “Good cause” includes the failure of CONTRACTOR to perform
the required services at the time and in the manner provided under this Agreement. If 3CE terminates this Agreement for good cause, 3CE may be relieved of the payment of any consideration to CONTRACTOR, and 3CE may proceed with the work in any manner, which 3CE deems proper. The cost to 3CE shall be deducted from any sum due the CONTRACTOR under this Agreement.
8. INDEMNIFICATION
8.1. CONTRACTOR shall indemnify, defend, and hold harmless 3CE, its Directors, Board members, officers, agents and employees from any claim, liability, loss, injury or damage arising out of, or in connection with, performance of this Agreement by CONTRACTOR and/or its agents, employees or sub-contractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of personnel employed by 3CE. It is the intent of the parties to this Agreement to provide the broadest possible coverage for 3CE. The CONTRACTOR shall reimburse 3CE for all costs, attorneys’ fees, expenses and liabilities incurred with respect to any litigation in which the CONTRACTOR is obligated to indemnify, defend and hold harmless 3CE under this Agreement.
8.1.1. The CONTRACTOR’s selection of counsel to satisfy CONTRACTOR’s defense and hold harmless obligation as set forth in section 8.1 above, shall be subject to review and approval by 3CE.
8.1.2. Notwithstanding any other provision of this Agreement, 3CE shall be entitled to participate fully in the defense of any claim or action.
9. INSURANCE REQUIREMENTS
9.1. Prior to commencement of this Agreement, the CONTRACTOR shall provide a “Certificate of Insurance” certifying that coverage as required herein has been obtained. Individual endorsements executed by the insurance carrier shall accompany the certificate. In addition, the CONTRACTOR upon request shall provide a certified copy of the policy or policies. This verification of coverage shall be sent to 3CE.
9.2. Without limiting CONTRACTOR’s duty to defend and indemnify, CONTRACTOR shall maintain in effect throughout the term of this Agreement a policy or policies of insurance with the following minimum limits of liability:
9.2.1.1. Commercial General Liability Insurance, including but not limited to premises and operations, including coverage for Bodily Injury and Property Damage, Personal Injury, Contractual Liability, Broad form Property Damage, Independent Contractors, Products and Completed Operations, and cross-liability with a combined single limit for Bodily Injury and Property Damage of not less than $1,000,000 per occurrence, and $2,000,000 in the aggregate.
9.2.1.2. Business Automobile Liability Insurance, covering all motor vehicles, including owned, leased, non-owned, and hired vehicles, used in providing services under this
Agreement, with a combined single limit for Bodily Injury and Property Damage of not less than $500,000 per occurrence.
9.2.1.3. Workers’ Compensation Insurance, if CONTRACTOR employs others in the performance of this Agreement, in accordance with California Labor Code section 3700 and with Employer’s Liability limits not less than $1,000,000 each person, $1,000,000 each accident and $1,000,000 each disease.
9.2.1.4. Professional Liability Insurance, if required for the professional services being provided, (e.g., those persons authorized by a license to engage in a business or profession regulated by the California Business and Professions Code), in the amount of not less than $1,000,000 per claim and $2,000,000 in the aggregate, to cover liability for malpractice or errors or omissions made in the course of rendering professional services. If professional liability insurance is written on a “claims-made” basis rather than an occurrence basis, the CONTRACTOR shall, upon the expiration or earlier termination of this Agreement, obtain extended reporting coverage (“tail coverage”) with the same liability limits. Any such tail coverage shall continue for at least three years following the expiration or earlier termination of this Agreement.
9.3. Unless otherwise specified by this Agreement, all such insurance shall be written on an occurrence basis, or, if the policy is not written on an occurrence basis, such policy with the coverage required herein shall continue in effect for a period of three years following the date CONTRACTOR completes its performance of services under this Agreement.
9.4. Commercial general liability and automobile liability policies shall provide an endorsement naming 3CE, its Directors, Board members, officers, agents, and employees as Additional Insureds with respect to liability arising out of the CONTRACTOR’S work, including ongoing and completed operations, and shall further provide that such insurance is primary insurance to any insurance or self-insurance maintained by 3CE and that the insurance of the Additional Insureds shall not be called upon to contribute to a loss covered by the CONTRACTOR’S insurance.
10. RECORD AND CONFIDENTIALITY
10.1. CONTRACTOR and its officers, employees, agents, and subcontractors shall comply with any and all federal, state, and local laws, which provide for the confidentiality of records and other information. CONTRACTOR shall not disclose any confidential records or other confidential information received from 3CE or prepared in connection with the performance of this Agreement, unless 3CE specifically permits CONTRACTOR to disclose such records or information. CONTRACTOR shall promptly transmit to 3CE any and all requests for disclosure of any such confidential records or information. CONTRACTOR shall not use any confidential information gained by CONTRACTOR in the performance of this Agreement except for the sole purpose of carrying out CONTRACTOR’s obligations under this Agreement.
10.1.1. Confidential Information specifically includes Covered Information (as defined in Exhibit C), including Protected Personal Information(“PPI”) that identifies, relates to, describes, or is capable of being associated with, or could reasonably be linked, directly or indirectly, with a consumer, household, or customer account. All such Covered Information and PPI must fully be protected from disclosure as set forth in California Public Utility Commission Decision D.12-08-045. In the event of an unauthorized release of Covered Information and PPI, CONTRACTOR shall comply with Exhibit C, Procedures for Unauthorized Release of Covered Information.
10.2. Upon expiration or termination of this Agreement, CONTRACTOR shall return to 3CE any 3CE records which CONTRACTOR used or received from 3CE to perform services under this Agreement.
10.3. CONTRACTOR shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and local rules and regulations related to services performed under this Agreement. CONTRACTOR shall maintain such records for a period of at least three years after receipt of final payment under this Agreement. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the three-year period, then CONTRACTOR shall retain said records until such action is resolved.
10.4. 3CE shall have the right to examine, monitor and audit all records, documents, conditions, and activities of the CONTRACTOR and its subcontractors related to services provided under this Agreement. Pursuant to Government Code section 8546.7, if this Agreement involves the expenditure of public funds in excess of $10,000, the parties to this Agreement may be subject, at the request of 3CE or as part of any audit of 3CE, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.
10.5. 3CE shall have a royalty-free, exclusive and irrevocable license to reproduce, publish, and use, and authorize others to do so, all original computer programs, writings, sound recordings, pictorial reproductions, drawings, and other works of similar nature produced in the course of or under this Agreement. CONTRACTOR shall not publish any such material without the prior written approval of 3CE.
11. NON-DISCRIMINATION
11.1. During the performance of this Agreement, CONTRACTOR, and its subcontractors, shall not unlawfully discriminate against any person because of race, religious creed, color, sex, national origin, ancestry, physical disability, mental disability, medical condition, marital status, age (over 40), or sexual orientation, either in CONTRACTOR’s employment practices or in the furnishing of services to recipients. CONTRACTOR shall ensure that the evaluation and treatment of its employees and applicants for employment and all persons receiving and requesting services are free of such discrimination. CONTRACTOR and any subcontractor shall, in the performance of this Agreement, fully comply with all federal, state, and local laws and regulations which prohibit discrimination. The provision of services primarily or
exclusively to such target population as may be designated in this Agreement shall not be deemed to be prohibited discrimination.
12. INDEPENDENT CONTRACTOR
12.1. In the performance of work, duties, and obligations under this Agreement, CONTRACTOR is at all times acting and performing as an independent contractor and not as an employee of 3CE.
No offer or obligation of permanent employment with 3CE and CONTRACTOR shall not become entitled by virtue of this Agreement to receive from 3CE any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. CONTRACTOR shall be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of CONTRACTOR’s performance of this Agreement. In connection therewith, CONTRACTOR shall defend, indemnify, and hold 3CE harmless from any and all liability which 3CE may incur because of CONTRACTOR’s failure to pay such taxes.
13. NOTICES
13.1. Notices required under this Agreement shall be delivered personally or by first-class, postage pre-paid mail to 3CE and CONTRACTOR’S contract administrators at the addresses listed below:
Central Coast Community Energy NewGen Strategies & Solutions, LLC Chief Financial Officer Attn: Tony Georgis
70 Garden Court, Suite 300 225 Union Blvd, Suite 450
Monterey, CA 93940 Lakewood, CO 80228
14. MISCELLANEOUS PROVISIONS
14.1. Conflict of Interest. CONTRACTOR represents that it presently has no interest and agrees not to acquire any interest during the term of this Agreement, which would directly, or indirectly conflict in any manner or to any degree with the full and complete performance of the services required to be rendered under this Agreement.
14.2. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by 3CE and the CONTRACTOR.
14.3. Waiver. Any waiver of any terms and conditions of this Agreement must be in writing and signed by 3CE and the CONTRACTOR. A waiver of any of the terms and conditions of this Agreement shall not be construed as a waiver of any other terms or conditions in this Agreement.
14.4. Contractor. The term “CONTRACTOR” as used in this Agreement includes CONTRACTOR’s officers, agents, and employees acting on CONTRACTOR’s behalf in the performance of this Agreement.
14.5. Disputes. CONTRACTOR shall continue to perform under this Agreement during any dispute.
14.6. Assignment and Subcontracting. The CONTRACTOR shall not assign, sell, or otherwise transfer its interest or obligations in this Agreement without the prior written consent of 3CE None of the services covered by this Agreement shall be subcontracted without the prior written approval of 3CE. Notwithstanding any such subcontract, CONTRACTOR shall continue to be liable for the performance of all requirements of this Agreement.
14.7. Successors and Assigns. This Agreement and the rights, privileges, duties, and obligations of 3CE and CONTRACTOR under this Agreement, to the extent assignable or delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, and heirs.
14.8. Compliance with Applicable Law. The parties shall comply with all applicable federal, state, and local laws and regulations in performing this Agreement.
14.9. Headings. The headings are for convenience only and shall not be used to interpret the terms of this Agreement.
14.10. Time is of the Essence. Time is of the essence in each and all of the provisions of this Agreement.
14.11. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California.
14.12. Non-exclusive Agreement. This Agreement is non-exclusive and both 3CE and CONTRACTOR expressly reserve the right to contract with other entities for the same or similar services.
14.13. Construction of Agreement. 3CE and CONTRACTOR agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement.
14.14. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.
14.15. Authority. Any individual executing this Agreement on behalf of 3CE or the CONTRACTOR represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement.
14.16. Integration. This Agreement, including the exhibits, represent the entire Agreement between 3CE and the CONTRACTOR with respect to the subject matter of this Agreement and shall supersede all prior negotiations, representations, or agreements, either written or oral, between 3CE and the CONTRACTOR as of the effective date of this Agreement, which is the date that 3CE signs the Agreement.
14.17. Interpretation of Conflicting Provisions. In the event of any conflict or inconsistency between the provisions of this Agreement and the Provisions of any exhibit or other attachment to this Agreement, the provisions of this Agreement shall prevail and control.
SIGNATURE OF THE PARTIES:
Vendor Central Coast Community Energy
BY:__________________________________ BY:______________________________________ Title:_____________________________ Robert M. Shaw, Chief Executive Officer Date: ____________________________ Date: ____________________________ Vendor Approved as to Form
BY:__________________________________ BY:______________________________________ Title:_____________________________ Charles McKee, General Counsel Date: ____________________________ Date: ____________________________ Approved as to Financial Terms
BY:______________________________________
Dewayne Woods, Chief Financial Officer
Date: ____________________________
Exhibit A: Scope of Services
Task 1 – Cost of Service Analysis
Task 1.1: Project Startup, Data Request, and Kickoff Meeting Immediately upon authorization to proceed, we will issue a data request in support of the Study and, specifically, updating the existing COS model. NewGen will develop an initial data request to gather all supporting power supply contract costs, operating expenses, budgets and projections, customer class load data, and related data to support the development of the revenue requirement, COS, and eventual rate recommendations. NewGen will also collaborate with 3CE and their data provider to gather the PG&E and SCE AMI data to support COS allocations, strategic rate decisions, and related rate making.
NewGen will then review initial data responses from 3CE and identify any gaps or additional data needs prior to the kickoff meeting. As NewGen is familiar with 3CE’s system and multiple service territories, we will review the data and perform initial updates in the COS model to prepare for the virtual kickoff meeting with 3CE staff and the core NewGen team. This kickoff meeting will also act as an initial workshop to discuss and review current/desired 3CE rate setting practices and potential margins, and to facilitate a discussion on the overall rate strategy and objectives. The kickoff meeting will also include a discussion of the overall project and schedules, a discussion of emerging rate trends, and a review of outstanding data needs/revisions where applicable.
The financial forecast model will be critical in projecting financial performance, annual cash requirements, reserve needs for rate stabilization, needed rate changes, and related financial key performance indicators (KPIs) (e.g., minimum cash on hand, effective rates, etc.). This discussion will also include the definition or evaluation of different scenarios and sensitivities 3CE wants to evaluate over the forecast period to better mitigate risks and understand impacts to rates and KPI performance.
As a part of Task 1, NewGen will update the existing COS model with actual expense, customer load, and rate data. This update will evaluate the initial projected results of the COS model and compare them to the actual conditions 3CE experienced in 2022 through 2024. This will highlight how “across the board” rate increases affected the cost recovery by class, how certain classes may affect the overall system costs, how close actual conditions were to projected, and how other costs or customer data may affect results.
Task 1.2: Development of 3CE’s Test Year Revenue Requirement NewGen will develop a three-year Test Year Revenue Requirement; however, we will update the COS model to allow individual Test Years if significant variability in the load, annual expenses, or other key inputs are present or expected. This functionality will allow 3CE to “toggle” between the two options for Test Year Revenue Requirement time periods to better inform rate-related decisions. The model will also allow for the ability to maintain separate service territories for SCE and PG&E or to consolidate them and instantly see the impacts to the COS results by customer class.
The COS model will maintain the 3CE budgeting system, chart of accounts, separate service territories, and any existing 3CE specific accounting practices that should be tracked through the COS and allocation to customer classes or products offered. NewGen will also work with 3CE to project or analyze specific system changes and/or refine specific cost projections as needed, such as:
• General and administrative, programmatic, cost of energy, uncollectible, and any other relevant components of the required revenue.
• Rate stabilization fund levels, cash reserves, and stabilization strategies. • PCIA and/or other applicable non-bypassable generation charges projections.
Test Year Revenue Requirement
Using the financial model and any desired scenario analysis, NewGen will collaborate with 3CE staff to optimize cash reserves, rate stabilization strategies, rates, KPIs, and related goals to develop the Test Year Revenue Requirement based on a three-year revenue requirement projection. This Test Year Revenue Requirement to be included in the COS will include all costs the utility must collect through rates for the desired period. It will also include any known and measurable adjustments necessary to account for material or significant changes to the 3CE power supply or delivery systems, such as a large new customer added or market fluctuations. As previously mentioned, the existing 3CE COS model will be updated to allow for increased flexibility and scenario analysis functionality. Specifically, the model will include the ability to seamlessly switch between multiple or individual Test Years, in addition to evaluating the impacts of consolidating the disparate SCE and PG&E territories into a single 3CE service territory for generation rates.
Task 1.3: Cost of Service
Based on the results of the financial forecast and final selection of the Test Year Revenue Requirement, NewGen will begin the COS. The Test Year Revenue Requirement will then be functionalized, classified, and allocated to the customer classes. NewGen will update and review all allocation factors with 3CE staff to highlight any major changes or refinements.
As a CCA, 3CE has a unique COS, which requires integrating and evaluating the impacts of the PCIA charge from two separate IOUs and the impact of a large service territory spanning the two IOUs and varying climate zones and load profiles for each customer class. The AMI or interval data is critical in developing supporting COS calculations and eventual customer allocations for these options.
The COS model currently uses basic Excel tools such as reference tables, pull down menus, and lists for inputs and adjusting selections such as allocation methodologies or specific allocators. The COS will allocate costs to the summary-level customer classes used by 3CE (e.g., domestic/residential, small commercial, medium commercial, etc.). These costs will then be compared to the revenue generated under current 3CE generation rates to determine the current over or under recovery by class. The development of a COS for each customer class will be completed for a consolidated and separate 3CE service territories.
NewGen will hold periodic virtual review meetings with the Project Team and 3CE staff to review the draft results at key milestones in the update of the COS model including the revenue requirements, review of consolidated/separate service territories, functionalization, and individual customer classes’ COS with comparisons to current rate revenues. Feedback from the meeting and any modifications requested from 3CE will be integrated into the final COS results.
Task 1.4: Rate Strategy and Design
Based on COS results, current rates, and competitive position (including benchmarking with current and projected PCIA rates), NewGen will hold a virtual meeting with 3CE staff to discuss the rate strategy and
any tailoring of the strategy to different service territories, if utilized. This will entail understanding the COS and cost-based results for each customer class, current and future PCIA rates, PG&E and SCE generation rate benchmarking, and current 3CE competitive position and customer churn. The results of the discussion will lead to the development of a COS-based or informed rate setting approach considering expected margin contributions, cash reserve contributions, product offerings, and other 3CE considerations for final rate recommendations. This strategy will drive the subsequent rate design for 3CE customers.
The final analytical step in the Study is developing the rate design model which will include design rates by class and by service territory, if applicable; customer average bill impacts; and benchmarking to incumbent IOU rates. Rate design will include designing base rates and related adjustments, discounts, or riders (e.g., CARE, Energy Cost Adjustment Charges) for each of the customer class rates (e.g., Domestic, small commercial, etc.) and confirming their ability to fully recover the Test Year Revenue Requirement.
The 3CE rates will be designed and bills calculated considering both PG&E and SCE delivery and non-bypassable charges. Furthermore, we will design rates appropriate to the existing TOU periods. Finally, if new rate structures or policies (e.g., EV, net metering, demand response, and standby rates) are identified in prior tasks and through discussions with 3CE staff, those rates will also be integrated into the rate design model in the appropriate approaches. NewGen will design rates for a period of one to three fiscal years (as determined by desired 2025–2027 Study period) to fully recover 3CE costs over that same period and ensure financial performance by tracking KPIs, such as annual over/under recovery, reserve levels, or fixed cost recovery.
After completing the recommended rates, the revenue adequacy of the new rates will be proven by forecasting and calculating the annual rate revenue generated for each customer class by 3CE rate tariffs and comparing it to the class and total system COS. NewGen will translate the final recommended rates to any 3CE rate templates or sheets as needed to integrate with the IOU billing system for a January 1 implementation date.
Average bills and related impacts for each class will automatically be calculated to compare existing, COS-based, IOU, and recommended new 3CE rates. The results of the initial rate design will be presented and discussed via a virtual meeting or webinar with 3CE staff. Based on feedback from the rate review, we will revise or provide an optional or alternative rate design scenario such as a phase-in of rate changes or adjustments in customer/demand/energy rate components.
Task 1.5 Stakeholder and Board Presentation
After final rate recommendations are completed and endorsed by the 3CE staff, NewGen will develop a draft presentation of the overall Study process, results, and recommendations for the 3CE Board.
NewGen will provide the draft presentation to 3CE staff for feedback and any refinements. NewGen will be available for an in-person presentation to the 3CE Board as needed to discuss the overall Study and rate recommendations.
Task1 Deliverables:
• Virtual Kickoff Meeting
• Periodic webinars and related project progress meetings for COS milestones
• Updated COS model with 2022- 2024 actual data to compare with the initial projected COS results • Development of 3CE financial forecast model and scenario analyses, and development of draft and final Test Year Revenue Requirement for review with 3CE Staff • Evaluation of 3CE AMI interval meter profiles to support development of customer class load profiles and characteristics from MDEF data
• Unbundled, classified, dynamic COS model for evaluating scenarios or variable adjustments • COS model functionality and results to support the development of multiple rate structures and/or incentives and results by consolidated or separate service territories • Virtual meeting with 3CE to discuss and review final COS results for each customer class comparing the revenue requirement for each class with associated Test Year revenues • Virtual meeting to collaborate and discuss rate setting approaches and strategy • Rate design model with recommended rates and phasing-in where needed • In-person presentation of Study findings, results, and rate recommendations to the 3CE Board Task 2 – Design of New Rate Structures
Task 2 will include the development of new rate structures for 3CE that may not align with existing SCE or PG&E rate codes or time periods. NewGen will leverage the COS model and results where possible to support the development of new or alternative rates. This may include the development of RTP rate options as required by the California Energy Commission (CEC), support of new “super off peak” TOU rates, or options regarding NEM rates.
If or as 3CE evaluates rate options that do not align with existing IOU billing periods and rate codes, NewGen will support the development of the cost-basis or COS-based charges for alternative time periods and will evaluate the potential customer behavioral impacts of the new charges and/or time periods. The COS model will also provide detailed information and the cost-basis for NEM rates for 3CE’s review. NewGen can quantify the potential fixed cost recovery or cost shifting driven by existing NEM customers.
As the RTP rate options are required by the CEC, NewGen will conduct research and benchmarking of PG&E and SCE’s RTP rate options. As it is easiest for CCAs to adopt existing IOU rate structures and time periods, we will evaluate a RTP option for 3CE that is compatible with the IOU’s existing plans, tariffs, and rate options for customers. NewGen will also collaborate with 3CE to develop a tactical implementation plan for the new RTP rate spanning the cost-basis for developing the rates and charges to eventual generation rates compatible with the IOU’s billing systems and structures. NewGen will also confirm requirements for the new RTP rate and ensure 3CE meets all applicable criteria and requirements.
Task 2 Deliverables:
• Alternative rate design recommendations including but not limited to RTP and new “super off peak” time period rate incentives.
• Existing NEM rate evaluation and quantification of potential cost shifting under current rates and policies.
• Tactical implementation plan for RTP in compliance with CEC requirements Task 3 – Rate Analytics and Rate Change Support
To remain competitive and up to date on rate, market, and regulatory trends that will impact 3CE’s rates and customers, NewGen will provide ongoing monitoring and reporting of key regulatory proceedings or policies. NewGen will leverage our relationship with CalCCA and our team of regulatory experts that remain engaged in the annual ERRA proceedings and larger General Rate Cases (GRCs) for the IOUs to provide periodic summaries of the emerging issues, decisions, rulings, or cases of which 3CE should be aware. The key component of the policy trends and regulatory proceedings monitoring will be tracking expected IOU generation rate changes and forecasting the PCIA. By monitoring the rate changes and ERRA filings for expected PCIA rates, NewGen can quickly develop generation rate competitive analyses and benchmarking for 3CE customer bills or consumption profiles.
To further support and document IOU rate trends, NewGen will maintain an electronic spreadsheet of current 3CE and IOU generation and PCIA rates. We will collaborate with 3CE staff, and specifically the IT and data scientist staff, to develop and design the spreadsheet for integration with a data warehouse, existing customer bill calculator, and other internal tools. As IOU generation or delivery rates change, or NewGen has insights on the future trends for rates (e.g., our work in the annual ERRA filings informing likely PCIA rates), we will update the spreadsheet or database of rates for more seamless integration with 3CE tools. NewGen will leverage our data analytics expertise and experience with other CCAs to provide an efficient update and rate database tool for 3CE that maintains up-to-date rates for benchmarking and bill comparisons for existing or prospective customers.
Finally, as a part of Task 3, NewGen will provide broad rate-related decision support and quality control/quality assurance for 3CE rate support staff as needed. This could include reviews of joint bill comparisons with the IOUs, confirmation of the treatment of PCIA rates and related taxes or fees applicable to 3CE rates, and general analytical and decision support for rate-related efforts. Where possible, NewGen will collaborate with 3CE staff to develop QA/QC tools and automate them as applicable. To support the broader as-needed staff support services, NewGen recommends maintaining an online collaboration and project tracking tool such as Wrike which we have used with 3CE in the past.
This would provide a comprehensive site or tool to request, monitor, and track projects or tasks related to staff rate support.
Task 3 Deliverables:
• Regulatory and California energy market trend monitoring and reporting including tracking the PCIA rates and forecasts
• Evaluate and update current and forecasted 3CE rate competitiveness for each rate schedule with updates for each IOU rate change
• Develop and maintain an electronic database of 3CE and IOU rates to be updated periodically and integrated with data warehouse
• Broader 3CE rate and financial staff support, including QA/QC where necessary
Exhibit B: Payment Terms
NewGen will provide the deliverables described in Exhibit A. All tasks and work will be billed on a time and material basis at the billing rates included. Task 1&2 defined tasks and deliverables are to be considered fully paid once the not-to-exceed amounts are reached each fiscal year (FY). The FY 2024-25 and FY 2025-26 will be evaluated at the end of the previous fiscal year and the deliverables defined within the Not to Exceed (NTE) as described below. The NTE amounts are $169,500 for FY 2023-24 and $111,500 annually for FY 2024-25 and FY 2025-26. The billing rates will be set at the rates shown below in the table titled ‘NewGen Strategies and Solutions 2023 Billing Rates’ for the duration of the contract.
Task
Fiscal Year 2023-24 Fiscal Year 2024-25 Fiscal Year 2025-26 Not to Exceed Not to Exceed Not to Exceed
Cost of Service Analysis1 $62,000 $34,500 $34,500
Design of New Rate Structures2 $22,300 $9,000 $9,000
Rate Analytics and Rate Change Support3 $85,200 $68,000 $68,000 Total Annual NTE $169,500 $111,500 $111,500
Notes:
1. Budget for SOW in years 2 and 3 assumes one-time costs and efforts will not be recurring. This includes simple updates of the COS and rate models, rather than development, modifications, expansions, and enhancements.
2. Budget for SOW in years 2 and 3 assumes one-time costs such as the development of the RTP rate and implementation plan will not be recurring.
General alternative rate design support remains for evaluation or creation of a new rate each year and some ongoing support for NEM analysis.
3. Budget for SOW in years 2 and 3 assumes one-time costs such as the development of the rate database will not be recurring. Maintenance and updating of the tool and databases remains.
NewGen Strategies and Solutions
2023 Billing Rates
Position Hourly Billing Rate
Partner $250 – $385
Principal $235 – $385
Senior Manager $210 – $265
Manager $185 – $210
Senior Consultant $160 – $185
Consultant $150 – $160
Administrative Services $120
Exhibit C: Procedures for Unauthorized Release of Covered Information SCOPE
CONTRACTOR hereby agrees to adhere to these Procedures for detecting and reporting the unauthorized release of Covered Information, including Protected Personal Information (“PPI”).
These Procedures apply to the following unauthorized release activities:
1. Unauthorized access
2. Unauthorized destruction
3. Unauthorized use
4. Unauthorized modification
5. Disclosure to third parties for Secondary Purposes (see below)
DEFINITIONS
Covered Entity – (1) any Community Choice Aggregator or Electrical Service Provider (when providing service to residential or small commercial customers), or any third party that provides services to a Community Choice Aggregator or Electrical Service Provider (when providing service to residential or small commercial customers) under contract, (2) any third party who accesses, collects, stores, uses or discloses covered information pursuant to an order of the Commission, unless specifically exempted, who obtains this information from an electrical corporation, a Community Choice Aggregator or an Electrical Service Provider (when providing service to residential or small commercial customers), or (3) any third party, when authorized by the customer, that accesses, collects, stores, uses, or discloses covered information relating to 11 or more customers who obtains this information from an electrical corporation, a Community Choice Aggregator or an Electrical Service Provider (when providing service to residential or small commercial customers).
Covered Information -- any usage information obtained through the use of the capabilities of Advanced Metering Infrastructure when associated with any information that can reasonably be used to identify an individual, family, household, residence, or non-residential customer, except that covered information does not include usage information from which identifying information has been removed such that an individual, family, household or residence, or non-residential customer cannot reasonably be identified or re-identified. Covered information, however, does not include information provided to the California Public Utilities Commission (the “Commission”) pursuant to its oversight responsibilities.
Primary Purposes – The “primary purposes” for the collection, storage, use, or disclosure of covered information, as outlined in Rule 1(c) of Attachment B, are to:
1. Provide or bill for electrical power or gas,
2. Provide for system, grid, or operational needs,
3. Provide services as required by state or federal law or as specifically authorized by an order of the Commission, or
4. Plan, implement, or evaluate demand response, energy management, or energy efficiency programs under contract with a Community Choice Aggregator or and Electrical Service Provider (when providing service to residential or small commercial customers), under contract with the
Commission, or as part of a Commission authorized program conducted by a governmental entity under the supervision of the Commission.
Secondary Purposes – “Secondary purpose” means any purpose that is not a primary purpose.
Non-Covered Entity – “Non-Covered Entity” means any entity not defined as a Covered Entity.
Responsible Parties -- 3CE, CONTRACTOR, and any staff, employees, or sub consultants contracted by 3CE or CONTRACTOR.
PROCEDURE
Detecting and Reporting of Unauthorized Releases
1. All Responsible Parties are required to protect Covered Information from unauthorized release activities as set forth above.
2. Any request by any non-Covered Entities, for access to Covered Information must be reviewed and approved by an 3CE manager level employee to ensure no unauthorized or inadvertent release of Covered Information.
3. All authorized releases of Covered Information to Non-Covered Entities shall be logged and reported to 3CE on a quarterly basis.
4. Any discovery of any unauthorized release of Covered Information must be reported to 3CE within one week of detection.
Unauthorized Release Handling Procedure
1. The discovering party after detecting, or discovery of, the unauthorized release of Covered Information must contact 3CE’s Dir. of Finance and Administration (or another executive manager) immediately.
2. CONTRACTOR will quantify and validate the type and extent of unauthorized release and report that information to 3CE’s Dir. of Finance and Administration in writing with sufficient detail for 3CE to determine the extent and impact of the unauthorized release.
3. CONTRACTOR shall prepare a written annual report of all discoveries of unauthorized releases of Covered Information.
Review and Training
1. At least annually, CONTRACTOR will review these Procedures with its staff, employees, or sub consultants.
2. Any proposed changes to these Procedures shall be provided in writing to 3CE’s Dir. of Finance and Administration for their consideration.
Staff Report Item 8
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Jon Griesser, Director of Energy Programs
SUBJECT: Approve and authorize the CEO to execute Amendment No. 3 to the Electrify Your Home implementation services agreement with Cohen Ventures, Inc., DBA Energy Solutions, to increase the not-to-exceed amount by $1,500,000 for a total of $3,260,000 with no change to the agreement term
DATE: November 8, 2023
RECOMMENDATION:
This report recommends authorizing Amendment No. 3 to 3CE's support services agreement with Cohen Ventures, Inc., DBA Energy Solutions, to implement the Electrify Your Home program. The proposed amendment will add $1.5 million to the not-to-exceed amount in the agreement, for a total of $3.26 million. No change to the agreement term, which expires in September 2024, is recommended.
BACKGROUND:
On March 9, 2022, the Operations Board authorized the CEO to execute an agreement with Energy Solutions in an amount not to exceed $1,760,000 and a term ending September 30, 2022, to support residential electrification program implementation.
In May 2022, 3CE launched the Electrify Your Home Program (EYH). The residential electrification program provides incentives to enrolled contractors who recommend and switch out gas-powered appliances in existing single and multi-family buildings with all-electric heat pump water heating and heat pump heating, ventilation, and air conditioning (HVAC) technologies. These incentives directly reduce the upfront cost for 3CE customers who make the switch to all-electric heat pump technology.
This program partners with the TECH Clean California Initiative (TECH), a statewide program, to leverage funds, support contractor enrollment, and offer training on heat pump technology and installation to support local workforce and economic development opportunities.
On August 10, 2022, the Operations Board approved Amendment No. 1 to the Agreement with Energy Solutions to extend the term of the Agreement by one (1) year to September 30, 2023, and adjust fees and incentive levels with no change to the not to exceed amount.
On August 9, 2023, the Operations Board approved Amendment No. 2 to the Agreement with Energy Solutions to extend the term of the Agreement by one (1) year to September 30, 2024, and modify the Scope of Work with no change to the not to exceed amount.
Beginning in May 2023, 3CE’s EYH program experienced a significant increase in applications, resulting in the payment or reservation of $1.17 million in incentives over a five-month period. At present, the total amount of funds paid or committed is $1,743,000, only $17,000 less than the total not-to-exceed amount in 3CE’s agreement with Energy Solutions.
On September 22, 2023, as a result of increased participation and demand, the EYH program closed to new applications. To continue offering the program as planned through the Fall of 2024, it is necessary to increase the not-to-exceed amount in the agreement.
DISCUSSION/ANALYSIS:
The marked increase in applications for 3CE’s EYH program during Summer 2023 coincided with TECH’s statewide relaunch and promotional campaign for its single-family heat pump HVAC incentives in May 2023 as well as 3CE’s own outreach campaign for EYH.
Between October 2022 and April 2023, 3CE’s EYH program received an average of 18 applications per month. After the TECH heat pump HVAC incentives became available in May, that number rose to an average of 47 per month, a 161% increase.
Figure 1: EYH advertising dollars spent and number of EHY applications received per month. 0 10
20 30
40 50
60 $0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
EYH Applications Received and Ad Spend Over FY
2022-23
No. of Applications Ad Spending
TECH HVAC Relaunch
During the summer of 2023, project payments or reservations under the EYH program increased from a previous average of $50,000 per month (October – April) to $233,000 per month (May – September).
In FY 2022-23, incentives paid and reserved under the EYH program supported the installation of 590 all-electric heat pump water heaters and HVAC units across 3CE’s service area. As shown in Table 1 below, a significant majority of single-family projects were heat pump HVAC installs.
EYH Project Type Unit Count
Single-family heat pump HVAC 252
Single-family heat pump water heater 38
Multifamily heat pump HVAC 160
Multifamily heat pump water heater 140
TOTAL 590
Table 1: Heat pump units incentivized through EYH for single-family and multifamily residential buildings in FY 2022-23.
Completion of these projects will result in the annual avoidance of 415 metric tons of carbon dioxide emissions, which is equivalent to avoiding the emissions from 92 gasoline-powered passenger vehicles driven for one year or 52 homes’ energy use for one year.
Given FY 22-23 EYH program performance, the high demand for heat pump HVAC incentives, and the relaunch of TECH heat pump water heater incentives on October 31, 2023, staff plan to adjust EYH incentive levels to both fully leverage and align with state funding, while also increasing EYH’s impact on emissions reductions. Key proposed modifications include:
Reducing incentive levels for single-family heat pump HVAC. Eliminating incentives for market-rate multifamily heat pump water heaters and decreasing incentives for income-qualified multifamily heat pump water heaters, in response to the availability of new state incentive funding available through TECH. Reducing the project cap for multifamily projects to $100,000 to allow for more, smaller projects.
Single-Family Incentive Level Changes
Heat Pump HVAC FY 2022-23 Incentive Per Unit FY 2023-24 Incentive Per Unit Baseline Efficiency $2,500 $1,500
Tier 1 Efficiency $3,000 $2,000
Tier 2 Efficiency $3,500 $2,500
Table 2: Single-family heat pump HVAC incentive levels in FY 2022-23 and 2023-24.
Multifamily Incentive Level Changes
Equipment
Type Capacity
FY 2022-23
Incentive Per Unit
(Market Rate)
FY 2022-23
Incentive Per Unit
(Income-Qualified)
FY 2023-24
Incentive Per Unit
(Market Rate)
FY 2023-24
Incentive Per Unit
(Income-Qualified)
Unitary
Heat Pump
Water Heater
<55 gal. $2,100 $2,800 $0 $1,000
>55 gal. $3,150 $4,200 $0 $1,000
Central
Heat Pump
Water Heater
<17 gal.
per
bedroom
$1,800 $2,400 $0 $1,000
>17 gal.
per
bedroom
$2,700 $3,600 $0 $1,000
Table 3: Multifamily heat pump water heater incentive levels in FY 2022-2023 and FY 2023-2024. 3CE aims to incentivize 700 heat pump installations across its service area in FY 2023-24, or approximately 58 installations per month. Achievement of this goal would represent a 19% increase in total annual installations, and a 23% increase in average installations per month, as compared to the average rate experienced since May 2023. This installation goal accounts for the proposed incentive level changes above and assumes the following:
A slower but continued increase (10 – 15%) in market demand for heat pump HVAC incentives. A significant increase (100%) in market demand for heat pump water heater incentives due to relaunch of TECH heat pump water heater incentives. It is also assumed that most heat pump water heater installations will primarily leverage new state incentive funding and participate in demand response. As a result, 3CE’s EYH budget will stretch farther and support more projects.
While the goal of 700 heat pump installations may seem ambitious compared to past performance, it represents a small fraction of the target set by Governor Newsom in July 2022 to install six million heat pumps in California by 2030.
FISCAL IMPACT:
The proposed increase to the not-to-exceed amount in the Cohen Ventures, Inc., DBA Energy Solutions agreement is supported by 3CE’s FY 2023-24 Budget, approved by the Policy Board on September 14, 2023.
CONCLUSION:
The Board’s approval of this action will result in the continued availability of 3CE’s Electrify Your Home program incentives through September 30, 2024, and substantively contribute to GHG emission reductions from residential buildings on the Central Coast.
ATTACHMENTS:
1. Amendment No. 3 to Cohen Ventures, Inc., DBA Energy Solutions, Agreement
2. Amendment No. 2 to Cohen Ventures, Inc., DBA Energy Solutions, Agreement
3. Amendment No. 1 to Cohen Ventures, Inc., DBA Energy Solutions, Agreement
4. Original Cohen Ventures, Inc., DBA Energy Solutions, Agreement
Amendment No. 2 To Agreement Between Energy Solutions and 3CE 1 AMENDMENT NO. 2
TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND
CENTRAL COAST COMMUNITY ENERGY
This Amendment No.2 to the Services Agreement (“Agreement”) which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”); (CCCE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:
RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of a residential electrification program (“Program”); and
WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining CCCE incentive funds with state incentive funds; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022; and
WHEREAS, without changing the Not to Exceed amount of the Agreement, 3CE and CONTRACTOR seek to extend the term of the Agreement to September 30, 2024; and WHEREAS, 3CE seeks to further support victims of declared natural disasters by providing enhanced incentives through the Electrify Your Home Program; and WHEREAS, 3CE seeks to leverage State funding available through the Self Generation Incentive Program to further support customers who choose to participate in Demand Response programs.
AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:
1. Amend the first sentence of Section 3.1 to read as follows:
The term of this Agreement is from the date of execution until September 30th, 2024, unless sooner terminated pursuant to the terms of this Agreement.
2. Replace Exhibit A-1 with Exhibit A-2, attached and incorporated herein.
3. Except as provided herein, all remaining terms, conditions and provisions of the EP-2023-019
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
Amendment No. 2 To Agreement Between Energy Solutions and 3CE 2 Agreement Amendment No. 1 are unchanged and unaffected by this Amendment No. 2 and shall continue in full force and effect.
4. The terms and conditions in this Amendment No. 2 shall control over any inconsistent terms and conditions in the original Agreement and Amendment No. 1.
5. A copy of this Amendment No. 2 shall be attached to the Original Agreement.
6. This Amendment No. 2 shall be effective when signed by both parties.
IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.
Cohen Ventures, Inc. DBA Energy Solutions
BY:_________________________________
Samuel Cohen, President
Date: ____________________________
Central Coast Community Energy
BY:___________________________________
Robert M. Shaw, Chief Executive Officer
Date: ____________________________
Approved as to Form
BY:___________________________________
Charles McKee, General Counsel
Date: ____________________________
Approved as to Financial Terms
BY:__________________________________
Dewayne Woods, Chief Financial Officer
Date: ____________________________
EP-2023-019
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 8/17/2023
8/24/2023
8/24/2023
8/24/2023
8/14/2023 3 Contract Number: EP-2023-019_
Exhibit A-2: Scope of Services
Task 1 - Program Administration
CONTRACTOR will collaborate with CCCE to develop, implement, and manage the CCCE Electrify Your Home Program (“The Program”) with activities including, but not limited to processing applications, paying incentives, reporting, and representing CCCE’s interests with third parties and participating contractors. CONTRACTOR will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.
Activities:
• Meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
CONTRACTOR will provide reports to CCCE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, CONTRACTOR’S software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit CCCE’s preferences.
CONTRACTOR will prepare a monthly report with a summary of current participation and performance indicators that are determined by CONTRACTOR and approved by CCCE. These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and CONTRACTOR.
Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.
Deliverables:
• Raw data provided ad hoc.
Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. CONTRACTOR will work with contractors to create DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
8/14/2023 4 Contract Number: EP-2023-019_
installs in CCCE territory and provide support on how to submit applications through the Incentive Clearinghouse. Contractors previously enrolled in the TECH Clean California Initiative will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.
Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all Program incentives, including potential future incentives that may be integrated from other parties (e.g., TECH or other State incentives). The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse are to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.
CONTRACTOR will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.
CONTRACTOR will process applications, conduct QA/QC, and pay incentives for CCCE on the Incentive Clearinghouse. If potential future incentives from third parties become available for program integration, payments to contractors will combine both CCCE and additional incentives into a single check paid to participants to simplify the payment process.
Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives. • Processing and Payment of CCCE Incentive applications.
Table 1: Estimated Percentage of Time Per Task
Task Estimated Percent of Time
Task 1 – Program Administration 30%
Task 2 – Monthly Data Reports 20%
Task 3 – Contractor Outreach 20%
Task 4 – Incentive Clearinghouse 30%
Program Incentives and Implementation
Incentive Plan
The tables below show incentive values for Heat Pump Heating, Ventilation, and Air Conditioning (HPHVAC) and Heat Pump Water Heater (HPWH) measures under the Program. In all cases, the incentive is limited by the project cost, which will be a required application field. The incentives will be available throughout CCCE service area and are subject to change based on CCCE’s discretion. The CCCE funded incentives will be paid by the CONTRACTOR and dispersed through the Contractor’s Incentive Clearinghouse to provide a seamless experience to market actors.
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
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Single Family Incentives
Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for single family homeowner customers converting from a gas or propane HVAC to all-electric HPHVAC.
Table 2: Unitary/Split System Heat Pump HVAC Incentives Equipment
Type* Size Category Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
Unitary Split
System and
mini/multi-split
< 5.4 tons Ducted
Baseline HP Replacement $2,500
1 16.0 SEER 9.5 $3,000
2 18.0 SEER 10.0 $3,500
*Incentives available for installations providing full-home heating/cooling. Load calculations showing the installed mini-/multi-split serves full home will be required as part of the application.
The Program will provide an added incentive to income qualified applicants installing a HVAC measure.
The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.
Table 3: Income Qualified Kicker - HPHVAC
Measure Qualifier
CCCE
Incentive
per Unit
Income Qualified Kicker CARE/FERA enrollment $1,000
The Program will provide added incentives for the installation of HPWH measures when (a) a customer certifies to Contractor they are located at a single-family home that was damaged by a Governor-proclaimed disaster occurring in or after February 2023, (b) Contractor passes this information on to 3CE and (c) 3CE thereafter notifies Contractor the customer is eligible for the added incentive. Contractor shall have no responsibility for determining eligibility for such added incentives and shall bear no costs or liabilities with respect to added incentives paid to customers subsequently determined to be ineligible.
Table 4: Equipment Replacement Disaster Kicker - HPHVAC Measure Qualifier
CCCE
Incentive
per Unit
Equipment Replacement
Disaster Kicker - HPHVAC
Damage to home resulting
from declared natural
disaster
$3,000
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
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Heat Pump Water Heater (HPWH) Measures
The Program will provide incentives for single family homeowner customers converting from a gas or propane water heater to all-electric HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive. For projects that leverage incentive funding from the California Public Utility Commission’s Self Generation Incentive Program (SGIP) under CPUC Decision 22-04-036, 3CE will provide a reduced incentive amount that can be combined with SGIP funds. Table 5: Heat Pump Water Heater Incentives
Previous WH Fuel Type HPWH Capacity
CCCE
Incentive per
Unit
CCCE
Incentive per
Unit for
Projects that
Leverage SGIP
funding
Natural Gas/Propane
< 55 Gallons $3,300 $1,500
> 55 Gallons $3,800 $1,500
The Program will provide added incentive for income qualified residential customers installing HPWH measures. The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.Table 6: Income Qualified Kicker - HPWH Measure Qualifier
CCCE
Incentive
per Unit
Income Qualified Kicker CARE/FERA enrollment $1,000
The Program will provide added incentives for the installation of HPWH measures when (a) a customer certifies to 3CE or Contractor a project is located at a single-family home that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later and (b) Contractor passes this information onto 3CE and (c) 3CE thereafter notifies Contractor the customer is eligible for the added incentive. Contractor shall have no responsibility for determining eligibility for such added incentives and shall bear no costs or liabilities with respect to added incentives paid to customers subsequently determined to be ineligible.
Table 7: Equipment Replacement Disaster Kicker - HPWH
Measure Qualifier
CCCE
Incentive
per Unit
Equipment Replacement
Disaster Kicker - HPWH
Damage to home resulting
from declared natural
disaster
$1,000
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
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Panel Replacement Measures
The Program will offer incentives for panel replacements or upgrades to single family homeowner customers that increase the effective panel capacity to support additional electrical load related to the installation of HPHVAC or HPWH measures. This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
Table 8: Panel Upgrade and Replacement Incentives
Measure Category
CCCE
Incentive per
Unit
Panel upgrade $2,000
Multi-Family Incentives
Gas to Electric HPWH
The Program will provide incentives for multifamily building owner customers converting from a gas or propane water heater to all-electric HPWH.
Table 9: Multifamily Unit HPWH Incentives
Measure Market Rate
Incentives per Unit
Income
Qualified
Incentives per
Unit
Gas/propane to HPWH - unitary $2,100 $2,800
Upsizing kicker Gas/propane to
HPWH - unitary $1,050 $1,400
Non HPWH to HPWH - central $1,800 $2,400
Upsizing kicker non HPWH to
HPWH - central $900 $1,200
Panel/Electrical service
upgrade* $2,000 $2,800
Disaster Replacement Kicker** $1,000 $1,000
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
** The incentive is determined by a project located at a multi-family dwelling that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later.
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Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for multifamily building owner customers converting from a gas or propane HVAC to all-electric HPHVAC.
Table 10: Multifamily Unit HP HVAC Incentives
Measure Market Rate Incentives
per Unit
Income
Qualified
Incentives per
Unit
Split or Rooftop HP - individual apt. $3,000 $4,000
PTHP, SPVHP, unitary through the
wall - individual apt. $750 $1,000
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$1,500 $2,000
HP HVAC - multiple apts. $1,500 $2,000
Split or Rooftop HP - common area $2,700 $3,600
PTHP, SPVHP, unitary through the
wall - common area
$450 $600
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$1,200 $1,600
Panel/Electrical service upgrade $2,000 $2,800
Disaster Replacement Kicker** $2,000 $2,000
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
** The incentive is determined by a project located at a multi-family dwelling that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later.
TECH Clean California Data Sharing
CCCE acknowledges and agrees that over the course of CONTRACTOR carrying out its obligations under this agreement, customer program participation data may need to be disclosed to CONTRACTOR’S subcontractors and representatives carrying out their obligations under the TECH Clean California program. In its agreements with subcontractors and representatives, CONTRACTOR will require the same adherence to all confidentiality and data security measures described by this Agreement, including Section 10. Record and Confidentiality and Exhibit C: Procedures for Release of Covered Information.
CONTRACTOR is solely responsible for any breach or non-compliance of these terms by its TECH Clean California subcontractors or CONTRACTOR representatives in safeguarding confidential information in accordance with this Agreement.
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 1 AMENDMENT NO. 1
TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND
CENTRAL COAST COMMUNITY ENERGY
This Amendment No.1 to the Services Agreement (“Agreement”) which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“CCCE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”); (CCCE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:
RECITALS
WHEREAS, CCCE and CONTRACTOR entered into the Agreement on March 11, 2022, to provide goods and/or services generally described as services to implement a Residential Electrification Program (“Program”) for CCCE customers; and WHEREAS, CCCE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining CCCE incentive funds with state incentive funds; and
WHEREAS, due to high demand, in May 2022, TECH Clean California Initiative funds became either fully reserved or substantially reserved throughout CCCE’s service area, impacting the Program’s ability to provide CCCE customers with incentives at the desired levels to accelerate electrification; and
WHEREAS, CCCE seeks to extend the term of the Agreement to September 30, 2023; and
WHEREAS, without changing the Not to Exceed amount of the Agreement, CCCE seeks to supplement incentive funds that were offered under the TECH Clean California Initiative to allow building electrification incentives to remain unchanged for CCCE customers.
AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:
The Agreement is hereby amended on the terms and conditions as set forth in the Agreement, except as specifically set forth below.
1. Amend the first sentence of Section 3.1 to read as follows:
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DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 2 The term of this Agreement is from the date of execution until September 30th, 2023, unless sooner terminated pursuant to the terms of this Agreement.
2. Replace Exhibit A with Exhibit A-1, attached and incorporated herein.
3. Replace Exhibit B with Exhibit B-1, attached and incorporated herein.
4. Except as provided herein, all remaining terms, conditions and provisions of the Agreement are unchanged and unaffected by this Amendment No. 1 and shall continue in full force and effect.
5. A copy of this Amendment No. 1 shall be attached to the Original Agreement.
6. This Amendment No. 1 shall be effective when signed by both parties.
IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.
Cohen Ventures, Inc. Central Coast Community Energy
BY:
Title: Associate Director
BY:
Tom Habashi, CEO
Date: 8/2/2022 | 8:19 AM PDT Date:
Approved as to Form
BY:
Brian Kimball, General Counsel
Date:
Approved as to Financial Terms
BY:
Jaya Bajpai, Chief Financial Officer
Date:
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Exhibit A-1: Scope of Services
Task 1 - Program Administration
CONTRACTOR will collaborate with CCCE to develop, implement, and manage the CCCE Electrify Your Home Program (“The Program”) with activities including, but not limited to processing applications, paying incentives, reporting, and representing CCCE’s interests with third parties and participating contractors. CONTRACTOR will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.
Activities:
• Meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
CONTRACTOR will provide reports to CCCE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, CONTRACTOR’S software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit CCCE’s preferences.
CONTRACTOR will prepare a monthly report with a summary of current participation and performance indicators that are determined by CONTRACTOR and approved by CCCE. These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and CONTRACTOR.
Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.
Deliverables:
• Raw data provided ad hoc.
Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. CONTRACTOR will work with contractors to create EP-2022-013
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installs in CCCE territory and provide support on how to submit applications through the Incentive Clearinghouse. Contractors previously enrolled in the TECH Clean California Initiative will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.
Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all Program incentives, including potential future incentives that may be integrated from other parties (e.g., TECH or other State incentives). The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse are to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.
CONTRACTOR will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.
CONTRACTOR will process applications, conduct QA/QC, and pay incentives for CCCE on the Incentive Clearinghouse. If potential future incentives from third parties become available for program integration, payments to contractors will combine both CCCE and additional incentives into a single check paid to participants to simplify the payment process.
Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives. • Processing and Payment of CCCE Incentive applications.
Table 1: Estimated Percentage of Time Per Task
Task Estimated Percent of Time
Task 1 – Program Administration 30%
Task 2 – Monthly Data Reports 20%
Task 3 – Contractor Outreach 20%
Task 4 – Incentive Clearinghouse 30%
Program Incentives and Implementation
Incentive Plan
The tables below show incentive values for Heat Pump Heating, Ventilation, and Air Conditioning (HPHVAC) and Heat Pump Water Heater (HPWH) measures under the Program. In all cases, the incentive is limited by the project cost, which will be a required application field. The incentives will be available throughout CCCE service area and are subject to change based on CCCE’s discretion. The CCCE funded incentives will be paid by the CONTRACTOR and dispersed through the Contractor’s Incentive Clearinghouse to provide a seamless experience to market actors.
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Single Family Incentives
Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for single family homeowner customers converting from a gas or propane HVAC to all-electric HPHVAC.
Table 2: Unitary/Split System Heat Pump HVAC Incentives Equipment
Type* Size Category Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
Unitary Split Baseline HP Replacement $2,500
System and
mini/multi- < 5.4 tons Ducted 1 16.0 SEER 9.5 $3,000
split 2 18.0 SEER 10.0 $3,500
*Incentives available for installations providing full-home heating/cooling. Load calculations showing the installed mini-/multi-split serves full home will be required as part of the application.
The Program will provide an added incentive to income qualified applicants installing a HVAC measure.
The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.
Table 3: Income Qualified Kicker - HPHVAC
Measure Qualifier
CCCE
Incentive
per Unit
Low-Income Kicker CARE/FERA enrollment $1,000
Heat Pump Water Heater (HPWH) Measures
The Program will provide incentives for single family homeowner customers converting from a gas or propane water heater to all-electric HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive.
Table 4: Heat Pump Water Heater Incentives
Previous WH Fuel
Type HPWH Capacity
CCCE
Incentive
per Unit
Natural Gas/Propane < 55 Gallons $3,300
> 55 Gallons $3,800
The Program will provide an added incentive to income qualified applicants installing HPWH measure.
The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.
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Table 5: Income Qualified Kicker - HPWH
Measure Qualifier
CCCE
Incentive
per Unit
Low-Income Kicker CARE/FERA enrollment $1,000
Panel Replacement Measures
The Program will offer incentives for panel replacements or upgrades to single family homeowner customers that increase the effective panel capacity to support additional electrical load related to the installation of HPHVAC or HPWH measures. This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
Table 6: Panel Upgrade and Replacement Incentives
Measure Category
CCCE
Incentive per
Unit
Panel upgrade $2,000
Multi-Family Incentives
Gas to Electric HPWH
The Program will provide incentives for multifamily building owner customers converting from a gas or propane water heater to all-electric HPWH.
Table 7: Multifamily Unit HPWH Incentives
Measure Market Rate
Incentives per Unit
Low Income
Incentives per
Unit
Gas/propane to HPWH - unitary $2,100 $2,800
upsizing kicker Gas/propane to
HPWH - unitary $1,050 $1,400
non HPWH to HPWH - central $1,800 $2,400
upsizing kicker non HPWH to
HPWH - central $900 $1,200
Panel/Electricalservice
upgrade* $2,000 $2,800
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
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Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for multifamily building owner customers converting from a gas or propane HVAC to all-electric HPHVAC.
Table 8: Multifamily Unit HP HVAC Incentives
Measure Market Rate Incentives
per Unit
Low Income
Incentives per
Unit
Split or Rooftop HP - individual apt. $3,000 $4,000
PTHP, SPVHP, unitary through the
wall - individual apt. $750 $1,000
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$1,500 $2,000
HP HVAC - multiple apts. $1,500 $2,000
Split or Rooftop HP - common area $2,700 $3,600
PTHP, SPVHP, unitary through the
wall - common area $450 $600
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$1,200 $1,600
Panel/Electricalservice upgrade $2,000 $2,800
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
TECH Clean California Data Sharing
CCCE acknowledges and agrees that over the course of CONTRACTOR carrying out its obligations under this agreement, customer program participation data may need to be disclosed to CONTRACTOR’S subcontractors and representatives carrying out their obligations under the TECH Clean California program. In its agreements with subcontractors and representatives, CONTRACTOR will require the same adherence to all confidentiality and data security measures described by this Agreement, including Section 10. Record and Confidentiality and Exhibit C: Procedures for Release of Covered Information. CONTRACTOR is solely responsible for any breach or non-compliance of these terms by its TECH Clean California subcontractors or CONTRACTOR representatives in safeguarding confidential information in accordance with this Agreement.
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Exhibit B-1: Payment Terms
Incentive Reimbursement
CONTRACTOR will pay incentives and be reimbursed by CCCE to simplify payment process.
CONTRACTOR will provide invoices with details of incentive payments as well as fixed price and performance payments in a format required by CCCE. Invoices will be submitted to CCCE by the 15th of each month.
Budget
CONTRACTOR will be compensated with an administration budget based on a fixed price (Fixed Price Start-Up Fee) and performance basis (Performance Payment). The Fixed Price Start-Up Fee and Performance Payment covers all the services in the Scope of Work. The Fixed Price Start-Up Fee covers costs associated with Program start-up, including 1) contractor outreach and enrollment across CCCE’s service area; 2) coordination with additional TECH Clean California Initiative activities, including but not limited to contractor outreach, contractor training, vendor engagement, data analysis, data reporting, marketing, and pilot activities; and 3) configuration of the Incentive Clearinghouse. The Program Implementation Fee covers ongoing services described in the Scope of Work. The Fixed Price Start-Up Fee shall be $50,000 and the Program Implementation Fee shall be 7% of all incentives paid out over $500,000. Associated with Program start-up, the Fixed Price Start-Up Fee will be invoiced upon receiving the Program’s first claim through the Incentive Clearinghouse and demonstration of completed activities 1 – 3 above, deemed satisfactory by CCCE. Tables 1 and 2 below provide a breakdown of the budget and budget thresholds for each building type.
Table 1: Budget Breakdown
Expense Type Total
Incentive Reimbursement $1,600,000
Administration Costs $160,000
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $110,000
Total Costs $1,760,000
Table 2. Budget per Category
Category Minimum Budget Maximum Budget Per Project
Single Family (SF) $600,000 $100,000*
Multi-Family (MF) $400,000 $100,000
Low-Income (SF or MF) $200,000 $200,000
*Includes large group single family projects such as a military base.
These budgets per category are intended to promote geographic equity and diversity across the Program’s projects. Incentive caps per category may be changed at CCCE's discretion and documented in email.
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CENTRAL COAST COMMUNITY ENERGY
STANDARD SERVICES AGREEMENT
This Agreement is made by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”), a California corporation with its principal place of business located at 449 15th Street, Suite 400, Oakland, CA . 3CE and CONTRACTOR may be individually referred to herein as “Party” or collectively as “Parties.” In consideration of the mutual covenants and conditions set forth in this Agreement, the Parties agree as follows:
1. GENERAL DESCRIPTION
1.1. 3CE hereby engages CONTRACTOR to perform, and CONTRACTOR hereby agrees to perform, the services described in Exhibits A in conformity with the terms of this Agreement. The goods and/or services are generally described as services to implement a Residential Electrification Program for CCCE customers.
2. PAYMENT PROVISIONS
2.1. 3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B, subject to the limitations set forth in this Agreement. The total amount payable by 3CE to CONTRACTOR under this Agreement shall not exceed the sum of $1,760,000.00.
3. TERM OF AGREEMENT
3.1. The term of this Agreement is from the date of execution until September 30th, 2022, unless sooner terminated pursuant to the terms of this Agreement. This Agreement is of no force or effect until signed by both the CONTRACTOR and 3CE, with 3CE’s execution to be last in time.
CONTRACTOR may not commence work under this Agreement before 3CE signs this Agreement.
3.2. 3CE reserves the right to cancel this Agreement, or any extension of this Agreement, without cause with thirty (30) days written notice, or with cause immediately.
4. SCOPE OF SERVICES AND ADDITIONAL PROVISIONS
4.1. The following attached exhibits are incorporated herein by reference and constitute a part of this Agreement:
4.1.1.Exhibit A: Scope of Services
4.1.2.Exhibit B: Payment Terms
4.1.3.Exhibit C: Procedures for Unauthorized Release of Covered Information DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
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5. PERFORMANCE STANDARDS
5.1. CONTRACTOR warrants that CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors performing services under this Agreement are specially trained, experienced, competent, and appropriately licensed to perform the work and deliver the services required under this Agreement and are not employees of 3CE or immediate family of an employee of 3CE.
5.2. CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors shall perform all work in a safe and skillful manner and in compliance with all applicable laws and regulations. All work performed under this Agreement that is required by law to be performed or supervised by licensed personnel shall be performed in accordance with such licensing requirements.
5.3. CONTRACTOR shall furnish, at its own expense, all materials, equipment, and personnel necessary to carry out the terms of this Agreement, except as otherwise specified in this Agreement. CONTRACTOR shall not use 3CE premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement.
6. PAYMENT CONDITIONS
6.1. Prices shall remain firm for the initial term of the Agreement and, thereafter, may be adjusted annually as provided herein. 3CE does not guarantee any minimum or maximum amount of dollars to be spent under this Agreement.
6.2. Negotiations for rate changes shall be commenced, by CONTRACTOR, a minimum of ninety days (90) prior to the expiration of the Agreement. Rate changes are not binding unless mutually agreed upon in writing by 3CE and the CONTRACTOR.
6.3. Invoices shall be submitted monthly on a form acceptable to 3CE and provide sufficient detail, as determined by 3CE, of services rendered for the invoiced period.
6.4. 3CE shall certify the invoice for payment in either the amount requested, or in such other amount as 3CE determines is due in conformity with this Agreement. Invoices shall be certified and paid within 45 days of submission to 3CE.
7. TERMINATION
7.1. During the term of this Agreement, 3CE may terminate the Agreement for any reason by giving written notice of termination to the CONTRACTOR at least thirty (30) days prior to the effective date of termination. Such notice shall set forth the effective date of termination. In the event of such termination, the amount payable under this Agreement shall be reduced in proportion to the services provided prior to the date of termination.
7.2. Either Party may provide notice to the breaching Party of the non-breaching Party’s intent to cancel and terminate this Agreement for Good Cause (defined below). Termination shall occur DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
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if the Parties fail to agree on a plan for the breaching Party to cure within fifteen (15) days of the breaching Party’s receipt of such notice. “Good Cause” includes the failure of CONTRACTOR to perform the required services at the time and in the manner provided under this Agreement, or failure for 3CE to render payment for completed services following CONTRACTOR’s written demand for payment, in accordance with Exhibit B – Payment Conditions. If either Party terminates this Agreement for Good Cause, 3CE may be relieved of payment for work not performed and 3CE may proceed with the work in any manner, which 3CE deems proper.
8. INDEMNIFICATION
8.1. CONTRACTOR shall indemnify, defend, and hold harmless 3CE, its Directors, Board members, officers, agents and employees from any claim, liability, loss, injury or damage arising out of, or in connection with, performance of this Agreement by CONTRACTOR and/or its agents, employees or sub-contractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of personnel employed by 3CE. It is the intent of the parties to this Agreement to provide the broadest possible coverage for 3CE. The CONTRACTOR shall reimburse 3CE for all costs, attorneys’ fees, expenses and liabilities incurred with respect to any litigation in which the CONTRACTOR is obligated to indemnify, defend and hold harmless 3CE under this Agreement.
8.1.1.The CONTRACTOR’s selection of counsel to satisfy CONTRACTOR’s defense and hold harmless obligation as set forth in section 8.1 above, shall be subject to review and approval by 3CE.
8.1.2.Notwithstanding any other provision of this Agreement, 3CE shall be entitled to participate fully in the defense of any claim or action.
9. INSURANCE REQUIREMENTS
9.1. Prior to commencement of this Agreement, the CONTRACTOR shall provide a “Certificate of Insurance” certifying that coverage as required herein has been obtained. Individual endorsements executed by the insurance carrier shall accompany the certificate. In addition, the CONTRACTOR upon request shall provide a certified copy of the policy or policies. This verification of coverage shall be sent to 3CE.
9.2. Without limiting CONTRACTOR’s duty to defend and indemnify, CONTRACTOR shall maintain in effect throughout the term of this Agreement a policy or policies of insurance with the following minimum limits of liability:
9.2.1.1. Commercial General Liability Insurance, including but not limited to premises and operations, including coverage for Bodily Injury and Property Damage, Personal Injury, Contractual Liability, Broad form Property Damage, Independent Contractors, Products and Completed Operations, and cross-liability with a combined single limit for Bodily Injury and Property Damage of not less than $1,000,000 per occurrence, and $2,000,000 in the aggregate.
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9.2.1.2. Business Automobile Liability Insurance, covering all motor vehicles, including owned, leased, non-owned, and hired vehicles, used in providing services under this Agreement, with a combined single limit for Bodily Injury and Property Damage of not less than $500,000 per occurrence.
9.2.1.3. Workers’ Compensation Insurance, if CONTRACTOR employs others in the performance of this Agreement, in accordance with California Labor Code section 3700 and with Employer’s Liability limits not less than $1,000,000 each person, $1,000,000 each accident and $1,000,000 each disease.
9.2.1.4. Professional Liability Insurance, if required for the professional services being provided, (e.g., those persons authorized by a license to engage in a business or profession regulated by the California Business and Professions Code), in the amount of not less than $1,000,000 per claim and $2,000,000 in the aggregate, to cover liability for malpractice or errors or omissions made in the course of rendering professional services. If professional liability insurance is written on a “claims-made” basis rather than an occurrence basis, the CONTRACTOR shall, upon the expiration or earlier termination of this Agreement, obtain extended reporting coverage (“tail coverage”) with the same liability limits. Any such tail coverage shall continue for at least three years following the expiration or earlier termination of this Agreement.
9.3. Unless otherwise specified by this Agreement, all such insurance shall be written on an occurrence basis, or, if the policy is not written on an occurrence basis, such policy with the coverage required herein shall continue in effect for a period of three years following the date CONTRACTOR completes its performance of services under this Agreement.
9.4. Commercial general liability and automobile liability policies shall provide an endorsement naming 3CE, its Directors, Board members, officers, agents, and employees as Additional Insureds with respect to liability arising out of the CONTRACTOR’S work, including ongoing and completed operations, and shall further provide that such insurance is primary insurance to any insurance or self-insurance maintained by 3CE and that the insurance of the Additional Insureds shall not be called upon to contribute to a loss covered by the CONTRACTOR’S insurance.
10. RECORD AND CONFIDENTIALITY
10.1. “Confidential Information” is defined as certain confidential, secret and proprietary information, disclosed either orally or in writing or in printed, graphic or electronically recorded materials, records, data, specifications, formulas, technology, inventions, devices, products, methods, know-how, processes, financial data, specific client data and requirements, client and potential client lists, information concerning each Parties employees, agents or divisions, pricing information, and other trade secrets which have been or will be developed and owned by either of the Parties or their respective client(s).
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10.1.1. Confidential Information specifically includes Covered Information (as defined in Exhibit C), including Protected Personal Information(“PPI”) that identifies, relates to, describes, or is capable of being associated with, or could reasonably be linked, directly or indirectly, with a consumer, household, or customer account. All such Covered Information and PPI must fully be protected from disclosure as set forth in California Public Utility Commission Decision D.12-08-045. In the event of an unauthorized release of Covered Information and PPI, CONTRACTOR shall comply with Exhibit C, Procedures for Unauthorized Release of Covered Information.
10.2. The Parties and their respective officers, employees, agents, and subcontractors shall comply with any and all federal, state, and local laws, which provide for the confidentiality of records and other information. A Party receiving Confidential Information (the “Receiving Party”) shall not disclose any confidential records or other Confidential Information received from the other Party (the “Disclosing Party”) or prepared in connection with the performance of this Agreement, unless the Disclosing Party specifically permits the Receiving Party to disclose such records or information. The Receiving Party shall promptly transmit to 3CE any and all requests for disclosure of any such confidential records or Confidential Information. The Receiving Party shall not use any Confidential Information gained by the Receiving Party in the performance of this Agreement except for the sole purpose of carrying out the Receiving Party’s obligations under this Agreement.
10.3. Upon expiration or termination of this Agreement, the Receiving Party shall return to the Disclosing Party any Disclosing Party records which the Receiving Party used or received from the Disclosing Party to perform services under this Agreement.
10.4. CONTRACTOR shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and local rules and regulations related to services performed under this Agreement. CONTRACTOR shall maintain such records for a period of at least three years after receipt of final payment under this Agreement. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the three-year period, then CONTRACTOR shall retain said records until such action is resolved.
10.5. 3CE shall have the right to examine, monitor and audit all records, documents, conditions, and activities of the CONTRACTOR and its subcontractors related to services provided under this Agreement. Pursuant to Government Code section 8546.7, if this Agreement involves the expenditure of public funds in excess of $10,000, the parties to this Agreement may be subject, at the request of 3CE or as part of any audit of 3CE, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.
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10.6. CONTRACTOR shall not publish any and all original computer programs, writings, sound recordings, pictorial reproductions, drawings, and other works of similar nature without the prior written approval of 3CE.
11. INTELLECTUAL PROPERTY RIGHTS
11.1 “Iris Platform” is defined as the Iris online software and associated data, owned and maintained by CONTRACTOR and provided as a part of the services to 3CE under this Agreement, that functions as an incentive processing and program reporting platform for 3CE’s customers and other third parties.
11.2 Intellectual Property Rights to the Iris Platform. All right, title, and interest in and to the Iris Platform (including without limitation all intellectual property rights therein) and all modifications, improvements, extensions, customizations, scripts or other definitive works of the Iris Platform provided or developed by the CONTRACTOR, whether prior to or during the Term of this Agreement, are and shall remain at all times solely vested in the CONTRACTOR. The Iris Platform was developed in its entirety by CONTRACTOR prior to the term of this Agreement, is the sole and exclusive property of CONTRACTOR, and CONTRACTOR retains all intellectual property rights thereto, including but not limited to copyrights (including all registrations and applications therefor), trade secrets, service marks, trademarks, trade names, trade dress, trademark applications and registrations, internet domain names, and all other proprietary and intellectual property rights, including moral rights.
Use of the Iris Platform by 3CE, its customers or any third party as part of the services shall not convey any rights of ownership to the Iris Platform, express or implied, including any intellectual property rights thereto, to any such party. During the term of this Agreement, CONTRACTOR grants to 3CE a non-exclusive, non-assignable, royalty-free, worldwide limited right to access and use the Iris Platform in connection with the services. Except as expressly provided herein, Company agrees not to assign, sublicense, transfer, copy, reproduce, distribute, republish, display, post or transmit in any form or by any means, any part of the Iris Platform to any third party. 3CE agrees not to access the Iris Platform by any means other than through the interfaces that are provided by CONTRACTOR.
Notwithstanding any conflicting terms of this Agreement, the Iris Platform and any and all works, expressions, inventions, ideas, discoveries, improvements and developments made to the Iris Platform by any person during the term of this Agreement, are explicitly excluded as "work for hire" pursuant to this Agreement.
Any data provided by 3CE to CONTRACTOR on the Iris Platform remains the property of 3CE and, upon request, shall be exported and/or deleted from the Iris Platform.
11.3 Iris Platform Terms of Use. All users of the Iris Platform shall be required to comply with the Iris Platform's standard Terms of Use, including 3CE employees who accesses the Iris Platform in connection DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
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with the services; provided, however, that if any Terms of Use applicable to 3CE employees conflict with any provisions of this Agreement, with respect to 3CE's use of the Iris Platform in connection with the services, the provision of this Agreement shall control.
12. NON-DISCRIMINATION
12.1. During the performance of this Agreement, CONTRACTOR, and its subcontractors, shall not unlawfully discriminate against any person because of race, religious creed, color, sex, national origin, ancestry, physical disability, mental disability, medical condition, marital status, age (over 40), or sexual orientation, either in CONTRACTOR’s employment practices or in the furnishing of services to recipients. CONTRACTOR shall ensure that the evaluation and treatment of its employees and applicants for employment and all persons receiving and requesting services are free of such discrimination. CONTRACTOR and any subcontractor shall, in the performance of this Agreement, fully comply with all federal, state, and local laws and regulations which prohibit discrimination. The provision of services primarily or exclusively to such target population as may be designated in this Agreement shall not be deemed to be prohibited discrimination.
13. INDEPENDENT CONTRACTOR
13.1. In the performance of work, duties, and obligations under this Agreement, CONTRACTOR is at all times acting and performing as an independent contractor and not as an employee of 3CE. No offer or obligation of permanent employment with 3CE and CONTRACTOR shall not become entitled by virtue of this Agreement to receive from 3CE any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. CONTRACTOR shall be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of CONTRACTOR’s performance of this Agreement. In connection therewith, CONTRACTOR shall defend, indemnify, and hold 3CE harmless from any and all liability which 3CE may incur because of CONTRACTOR’s failure to pay such taxes.
14. NOTICES
14.1. Notices required under this Agreement shall be delivered personally, by email, or by first-class, postage pre-paid mail to 3CE and CONTRACTOR’S contract administrators at the addresses listed below. In the case of email, Notices are considered received upon the date of confirmation of receipt or read receipt:
Central Coast Community Energy CONTRACTOR
Chief Financial Officer Contract Services
70 Garden Court, Suite 300 449 15th Street, Suite 400
Monterey, Ca 93940 Oakland, CA 94612
Email: [email protected] Email: [email protected] DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
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15. MISCELLANEOUS PROVISIONS
15.1. Conflict of Interest. CONTRACTOR represents that it presently has no interest and agrees not to acquire any interest during the term of this Agreement, which would directly, or indirectly conflict in any manner or to any degree with the full and complete performance of the services required to be rendered under this Agreement.
15.2. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by CCCE and the CONTRACTOR.
15.3. Waiver. Any waiver of any terms and conditions of this Agreement must be in writing and signed by 3CE and the CONTRACTOR. A waiver of any of the terms and conditions of this Agreement shall not be construed as a waiver of any other terms or conditions in this Agreement.
15.4. Contractor. The term “CONTRACTOR” as used in this Agreement includes CONTRACTOR’s officers, agents, and employees acting on CONTRACTOR’s behalf in the performance of this Agreement.
15.5. Disputes. CONTRACTOR shall continue to perform under this Agreement during any dispute.
15.6. Assignment and Subcontracting. The CONTRACTOR shall not assign, sell, or otherwise transfer its interest or obligations in this Agreement without the prior written consent of 3CE None of the services covered by this Agreement shall be subcontracted without the prior written approval of 3CE. Notwithstanding any such subcontract, CONTRACTOR shall continue to be liable for the performance of all requirements of this Agreement.
15.7. Successors and Assigns. This Agreement and the rights, privileges, duties, and obligations of 3CE and CONTRACTOR under this Agreement, to the extent assignable or delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, and heirs.
15.8. Compliance with Applicable Law. The parties shall comply with all applicable federal, state, and local laws and regulations in performing this Agreement.
15.9. Headings. The headings are for convenience only and shall not be used to interpret the terms of this Agreement.
15.10. Time is of the Essence. Time is of the essence in each and all of the provisions of this Agreement.
15.11. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California.
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15.12. Non-exclusive Agreement. This Agreement is non-exclusive and both 3CE and CONTRACTOR expressly reserve the right to contract with other entities for the same or similar services.
15.13. Construction of Agreement. 3CE and CONTRACTOR agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement.
15.14. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.
15.15. Authority. Any individual executing this Agreement on behalf of 3CE or the CONTRACTOR represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement.
15.16. Integration. This Agreement, including the exhibits, represent the entire Agreement between 3CE and the CONTRACTOR with respect to the subject matter of this Agreement and shall supersede all prior negotiations, representations, or agreements, either written or oral, between 3CE and the CONTRACTOR as of the effective date of this Agreement, which is the date that 3CE signs the Agreement.
15.17. Interpretation of Conflicting Provisions. In the event of any conflict or inconsistency between the provisions of this Agreement and the Provisions of any exhibit or other attachment to this Agreement, the provisions of this Agreement shall prevail and control.
Energy Solutions Central Coast Community Energy
BY:__________________________________ BY:______________________________________ Title:_____________________________ Tom Habashi, CEO
Date: ____________________________ Date: ____________________________ Approved as to Form
BY:______________________________________
Brian Kimball, General Counsel
Date: ____________________________
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Director, Energy Efficiency
3/9/2022
3/11/2022
3/11/2022
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
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Approved as to Financial Terms
BY:______________________________________
Jaya Bajpai, Chief Financial Officer
Date: ____________________________
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/10/2022
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
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Exhibit A: Scope of Services
Task 1 - Program Administration
Consultant will collaborate with CCCE to develop, implement, and manage the Program with activities including, but not limited to program budget and tracking and representing CCCE’s interests with third parties and participating contractors. Consultant will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.
Activities:
• In Person meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
Consultant will provide reports to CCCE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, our software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit CCCE’s preferences.
Consultant will prepare a monthly report with a summary of current participation and performance indicators that are determined by Consultant and approved by CCCE.
These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and Consultant.
Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. Consultant will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.
Deliverables:
• Raw data provided ad hoc.
Task 3 - Contractor Outreach
Consultant will leverage trade ally outreach efforts of TECH to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. Consultant will work with contractors to create installs in CCCE territory and provide support on how to submit applications through the DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
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Incentive Clearinghouse. Contractors enrolled in TECH will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.
Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all TECH incentives. This feature will be used for statewide, pilot, and regional incentives offered by TECH, and will be essential to scale and integrate new initiatives as building electrification is more widely adopted. The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse is to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.
Consultant will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.
Consultant will pay process, QA/QC and pay incentives for CCCE on the clearinghouse. Payments to contractors will combine both CCCE and TECH incentives into a single check paid to participants to simplify the payment process.
Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives • Processing and Payment of CCCE Incentive applications.
Estimated Percentage of Time Per Task:
Task Estimated Percent of Time
Task 1 – Program Administration 30%
Task 2 – Monthly Data Reports 20%
Task 3 – Contractor Outreach 20%
Task 4 – Incentive Clearinghouse 30%
Program Duration
Program duration is at the discretion of CCCE, but the current proposal assumes the program will run from July 1, 2022, through July 1st, 2025, or until the budget is spent.
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Program Incentives and Implementation
Incentive Plan
The below tables show the incentive values for HP HVAC and HPWH measures. In all cases, the incentive is limited by the project cost, which will be a required application field. The incentives will be available throughout CCCE territory.
Single Family Incentives
Heat Pump HVAC Measures
TECH plans to offer baseline incentives of $3,000 per unit to all Gas IOU customers in California. TECH is seeking to partner with other program administrators that want to provide incentives to support quicker adoption by supporting an enhanced incentive structure that offers up to $3,600 in additional incentives. Consultant proposes that CCCE funds $1,500 per HP HVAC installation, which will allow the TECH to provide complementary incentives for the installation of higher efficiency equipment with higher installation quality. These CCCE funded incentives will be paid by the Consultant and dispersed through the Incentive Clearinghouse with the TECH funds to provide a seamless experience to market actors.
Table 1: Unitary/Split System Heat Pump HVAC Incentives *Incentives available for installations providing full-home heating/cooling. Load calculations showing the installed mini-/multi-split serves full home will be required as part of the application. **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.
Energy Solutions will inform CCCE of any potential changes to TECH incentives.
Table 2: Heat Pump HVAC Quality Installation Bonuses
Quality Installation Measure* Qualifier
CCCE
Incentive
per Unit
TECH
Incentive per
Unit**
Total
Incentive per
Unit
Manual J Completed Provide Calculations $0 $600 $600
Duct Testing and Sealing 5% Total leakage or less $0 $600 $600 Equipment
Type
Size
Category
Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
TECH
Incentive
per
Unit**
Total
Incentive
per Unit
Unitary Split
System and
mini/multi-split
< 5.4 tons Ducted
Baseline HP Replacement $1,500 $1,500 $3,000
1 16.0 SEER 9.5 $1,500 $2,400 $3,900
2 18.0 SEER 10.0 $1,500 $3,300 $4,800
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Field Measured Performance
(based on ASHRAE 221-2020)
Heating System Performance Ratio (HSPr)
or Cooling System Performance Ratio
(CSPr) = 80% or better
$0 $600 $600
*Incentives only available as add-on bonuses to heat pump installation. **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.
Energy Solutions will inform CCCE of any potential changes to TECH incentives.
The HP HVAC measures are for gas to heat pump conversion scenarios only. In all cases, the applicant must show that the gas equipment has either been fully decommissioned or setup to run in emergency scenarios only. In addition, the HP HVAC incentives are based on heat pumps that provide full-home heating and cooling. The incentives are available in cases when the customer does not have previous cooling.
CCCE would also be funding a low-income adder, with a flat rate of $1,000/unit.
Measure Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit
Total
Incentive
per Unit*
Low-Income Kicker CARE/FERA enrollment $1,000 $0 $1,000 Heat Pump Water Heater Measures
The Program will offer incentives for customers converting from a gas, propane, or electric resistance water heater to HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive. Like the HP HVAC measures, TECH plans to offer baseline incentives for HPWH’s but will offer an enhanced incentive structure (up to a total of $6,600) for partners that want to provide incentives for these technologies. The enhanced incentive structure will support additional incentives for replacing electric resistance water heaters and for panel upgrades needed in conjunction with HPWH installations. Consultant proposes that CCCE offer $1,500 for gas to electric conversions. These incentives will be funded by CCCE and distributed by the Consultant with the complimentary TECH incentives. This contribution of funding enables TECH to offer complimentary incentives that are more attractive for replacing electric resistance replacement, and enable electric panel upgrades, overcoming a major barrier to many installations.
Table 3: Heat Pump Water Heater Incentives
Previous WH Fuel
Type HPWH Capacity
CCCE
Incentive
per Unit
TECH
Incentive
per Unit*
Total
Incentive
per Unit
Natural Gas/Propane
< 55 Gallons $1,500 $1,600 $3,100
> 55 Gallons $1,500 $2,300 $3,800
Electric resistance All $0 $1,500 $1,500
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.
Energy Solutions will inform CCCE of any potential changes to TECH incentives.
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Table 4: Panel Upgrade/Smart Load Center Incentives
Measure Category Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit**
Total
Incentive
per Unit
Panel upgrade Up to 200 amps
$1,000 $1,800 $2,800
Smart Load Center* None
*Incentives only available as add-on bonuses to heat pump water heater installation **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.
Energy Solutions will inform CCCE of any potential changes to TECH incentives.
The incentive rates for natural gas or propane to HPWH are differentiated to support upsizing HPWHs to ensure the units have capacity to run primarily in heat pump mode, while also having load available to shift out of peak demand periods.
TECH will offer panel upgrade incentives for customers sizing up to 200 amps or installing a smart load center if the smart load center increases the effective panel capacity to support the added electrical load from the HPWH.
CCCE would also be funding a low-income adder, with a flat rate of $1,000/unit Measure Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit
Total
Incentive
per Unit
Low-Income Kicker CARE/FERA enrollment $1,000 $0 $1,000 Consultant will re-evaluate incentive levels and participation after the first year, 2022, to determine whether the incentive design should be updated to meet the needs of CCCE and TECH. The soon to be released 120-volt “plug-in” HPWHs will be eligible for the incentive amount associated with the previous water heater fuel type. Consultant may establish a future measure category specifically available for the 120-volt HPWHs once more data on unit install cost are collected.
Multi-Family Incentives
Multifamily incentives are proposed to be 50% of current TECH offering for market rate incentives and 100% of the TECH incentives for low income. These incentives reflect similar incentives offered by other Program Administrators in the state and can be layered directly with the TECH incentives. This format will ensure that there is little confusion with multifamily contractors.
Gas to Electric HPWH
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Measure CCCE Market Rate
Incentives
CCCE Low
Income
Incentives
TECH
Layered
Incentives*
Gas/propane to HPWH - unitary $700 $1,400 $1,400
upsizing kicker Gas/propane to
HPWH - unitary
$350 $700 $700
non HPWH to HPWH - central $600 $1,200 $1,200
upsizing kicker non HPWH to
HPWH - central
$300 $600 $600
Panel/Electrical service upgrade $700 $1,400 $1,400
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.
Energy Solutions will inform CCCE of any potential changes to TECH incentives.
Gas to Electric HP HVAC Incentives
Measure CCCE Market Rate
Incentives
CCCE Low
Income
Incentives
TECH Layered
Incentives*
Split or Rooftop HP - individual apt. $1,000 $2,000 $2,000 PTHP, SPVHP, unitary through the
wall - individual apt.
$250 $500 $500
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$500 $1,000 $1,000
HP HVAC - multiple apts. $500 $1,000 $1,000
Split or Rooftop HP - common area $900 $1,800 $1,800
PTHP, SPVHP, unitary through the
wall - common area
$150 $300 $300
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$400 $800 $800
Panel/Electrical service upgrade $700 $1,400 $1,400
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.
Energy Solutions will inform CCCE of any potential changes to TECH incentives.
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Exhibit B: Payment Terms
Incentive Reimbursement
Consultant will pay incentives and be reimbursed by CCCE to simplify payment process. Consultant will provide invoices with details of incentive payments as well as fixed price and performance payments in an agreed upon between Consultant and CCCE. Invoices will be submitted to CCCE by the 15th of each month.
Budget
Consultant will be compensated with an administration budget based on a fixed price (Fixed Price Start-Up Fee) and performance basis (Performance Payment). The Fixed Price Start-Up Fee and Performance Payment covers all the services in the Scope of Work. The Fixed Price Start-Up Fee covers costs associated with Program start-up, including 1) contractor outreach and enrollment across CCCE’s service area, 2) coordination with additional TECH activities, and 3) configuration of the Incentive Clearinghouse. The Program Implementation Fee covers ongoing services described in the Scope of Work. The Fixed Price Start-Up Fee shall be $50,000 and the Program Implementation Fee shall be 10% of all incentives paid out over $500,000. Associated with Program start-up, the Fixed Price Start-Up Fee will be invoiced upon receiving the Program’s first claim through the Incentive Clearinghouse and satisfactory demonstration of completed activities 1 – 3 above. Table 6 below provides the key performance indicators and budget for the Program.
Table 5: Budget and Participation Estimates
Key Metric Total
Estimated HP HVAC Units 667
Estimated HPWH Units 400
Incentive Reimbursement $1,600,000
Total Administration Costs $160,000
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $110,000
Total Costs $1,760,000
Table 6. Budget per Category
Category Minimum Budget Maximum Budget Per Project
Single Family (SF) $600,000 $100,000*
Multi-Family (MF) $400,000 $100,000
Low-Income (SF or MF) $200,000 $200,000
*Includes large group single family projects such as a military base.
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0
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These budgets per category are intended to promote geographic equity and diversity across the Program’s projects. Incentive caps per category may be changed through agreement with both parties and documented in email.
Exhibit C: Procedures for Unauthorized Release of Covered Information SCOPE
CONTRACTOR hereby agrees to adhere to these Procedures for detecting and reporting the unauthorized release of Covered Information, including Protected Personal Information (“PPI”).
These Procedures apply to the following unauthorized release activities:
1. Unauthorized access
2. Unauthorized destruction
3. Unauthorized use
4. Unauthorized modification
5. Disclosure to third parties for Secondary Purposes (see below)
DEFINITIONS
Covered Entity – (1) any Community Choice Aggregator or Electrical Service Provider (when providing service to residential or small commercial customers), or any third party that provides services to a Community Choice Aggregator or Electrical Service Provider (when providing service to residential or small commercial customers) under contract, (2) any third party who accesses, collects, stores, uses or discloses covered information pursuant to an order of the Commission, unless specifically exempted, who obtains this information from an electrical corporation, a Community Choice Aggregator or an Electrical Service Provider (when providing service to residential or small commercial customers), or (3) any third party, when authorized by the customer, that accesses, collects, stores, uses, or discloses covered information relating to 11 or more customers who obtains this information from an electrical corporation, a Community Choice Aggregator or an Electrical Service Provider (when providing service to residential or small commercial customers).
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Covered Information -- any usage information obtained through the use of the capabilities of Advanced Metering Infrastructure when associated with any information that can reasonably be used to identify an individual, family, household, residence, or non-residential customer, except that covered information does not include usage information from which identifying information has been removed such that an individual, family, household or residence, or non-residential customer cannot reasonably be identified or re-identified. Covered information, however, does not include information provided to the California Public Utilities Commission (the “Commission”) pursuant to its oversight responsibilities.
Primary Purposes – The “primary purposes” for the collection, storage, use, or disclosure of covered information, as outlined in Rule 1(c) of Attachment B, are to:
1. Provide or bill for electrical power or gas,
2. Provide for system, grid, or operational needs,
3. Provide services as required by state or federal law or as specifically authorized by an order of the Commission, or
4. Plan, implement, or evaluate demand response, energy management, or energy efficiency programs under contract with a Community Choice Aggregator or and Electrical Service Provider (when providing service to residential or small commercial customers), under contract with the Commission, or as part of a Commission authorized program conducted by a governmental entity under the supervision of the Commission.
Secondary Purposes – “Secondary purpose” means any purpose that is not a primary purpose.
Non-Covered Entity – “Non-Covered Entity” means any entity not defined as a Covered Entity.
Responsible Parties -- 3CE, CONTRACTOR, and any staff, employees, or sub consultants contracted by 3CE or CONTRACTOR.
PROCEDURE
Detecting and Reporting of Unauthorized Releases
1. All Responsible Parties are required to protect Covered Information from unauthorized release activities as set forth above.
2. Any request by any non-Covered Entities, for access to Covered Information must be reviewed and approved by an 3CE manager level employee to ensure no unauthorized or inadvertent release of Covered Information.
3. All authorized releases of Covered Information to Non-Covered Entities shall be logged and reported to 3CE on a quarterly basis.
4. Any discovery of any unauthorized release of Covered Information must be reported to 3CE within one week of detection.
Unauthorized Release Handling Procedure
1. The discovering party after detecting, or discovery of, the unauthorized release of Covered Information must contact 3CE’s Dir. of Finance and Administration (or another executive manager) immediately.
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2. CONTRACTOR will quantify and validate the type and extent of unauthorized release and report that information to 3CE’s Dir. of Finance and Administration in writing with sufficient detail for 3CE to determine the extent and impact of the unauthorized release.
3. CONTRACTOR shall prepare a written annual report of all discoveries of unauthorized releases of Covered Information.
Review and Training
1. At least annually, CONTRACTOR will review these Procedures with its staff, employees, or sub consultants.
2. Any proposed changes to these Procedures shall be provided in writing to 3CE’s Dir. of Finance and Administration for their consideration.
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DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 1 AMENDMENT NO. 1
TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND
CENTRAL COAST COMMUNITY ENERGY
This Amendment No.1 to the Services Agreement (“Agreement”) which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“CCCE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”); (CCCE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:
RECITALS
WHEREAS, CCCE and CONTRACTOR entered into the Agreement on March 11, 2022, to provide goods and/or services generally described as services to implement a Residential Electrification Program (“Program”) for CCCE customers; and WHEREAS, CCCE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining CCCE incentive funds with state incentive funds; and
WHEREAS, due to high demand, in May 2022, TECH Clean California Initiative funds became either fully reserved or substantially reserved throughout CCCE’s service area, impacting the Program’s ability to provide CCCE customers with incentives at the desired levels to accelerate electrification; and
WHEREAS, CCCE seeks to extend the term of the Agreement to September 30, 2023; and
WHEREAS, without changing the Not to Exceed amount of the Agreement, CCCE seeks to supplement incentive funds that were offered under the TECH Clean California Initiative to allow building electrification incentives to remain unchanged for CCCE customers.
AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:
The Agreement is hereby amended on the terms and conditions as set forth in the Agreement, except as specifically set forth below.
1. Amend the first sentence of Section 3.1 to read as follows:
EP-2022-013
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DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 2 The term of this Agreement is from the date of execution until September 30th, 2023, unless sooner terminated pursuant to the terms of this Agreement.
2. Replace Exhibit A with Exhibit A-1, attached and incorporated herein.
3. Replace Exhibit B with Exhibit B-1, attached and incorporated herein.
4. Except as provided herein, all remaining terms, conditions and provisions of the Agreement are unchanged and unaffected by this Amendment No. 1 and shall continue in full force and effect.
5. A copy of this Amendment No. 1 shall be attached to the Original Agreement.
6. This Amendment No. 1 shall be effective when signed by both parties.
IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.
Cohen Ventures, Inc. Central Coast Community Energy
BY:
Title: Associate Director
BY:
Tom Habashi, CEO
Date: 8/2/2022 | 8:19 AM PDT Date:
Approved as to Form
BY:
Brian Kimball, General Counsel
Date:
Approved as to Financial Terms
BY:
Jaya Bajpai, Chief Financial Officer
Date:
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Exhibit A-1: Scope of Services
Task 1 - Program Administration
CONTRACTOR will collaborate with CCCE to develop, implement, and manage the CCCE Electrify Your Home Program (“The Program”) with activities including, but not limited to processing applications, paying incentives, reporting, and representing CCCE’s interests with third parties and participating contractors. CONTRACTOR will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.
Activities:
• Meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
CONTRACTOR will provide reports to CCCE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, CONTRACTOR’S software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit CCCE’s preferences.
CONTRACTOR will prepare a monthly report with a summary of current participation and performance indicators that are determined by CONTRACTOR and approved by CCCE. These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and CONTRACTOR.
Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.
Deliverables:
• Raw data provided ad hoc.
Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. CONTRACTOR will work with contractors to create EP-2022-013
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installs in CCCE territory and provide support on how to submit applications through the Incentive Clearinghouse. Contractors previously enrolled in the TECH Clean California Initiative will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.
Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all Program incentives, including potential future incentives that may be integrated from other parties (e.g., TECH or other State incentives). The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse are to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.
CONTRACTOR will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.
CONTRACTOR will process applications, conduct QA/QC, and pay incentives for CCCE on the Incentive Clearinghouse. If potential future incentives from third parties become available for program integration, payments to contractors will combine both CCCE and additional incentives into a single check paid to participants to simplify the payment process.
Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives. • Processing and Payment of CCCE Incentive applications.
Table 1: Estimated Percentage of Time Per Task
Task Estimated Percent of Time
Task 1 – Program Administration 30%
Task 2 – Monthly Data Reports 20%
Task 3 – Contractor Outreach 20%
Task 4 – Incentive Clearinghouse 30%
Program Incentives and Implementation
Incentive Plan
The tables below show incentive values for Heat Pump Heating, Ventilation, and Air Conditioning (HPHVAC) and Heat Pump Water Heater (HPWH) measures under the Program. In all cases, the incentive is limited by the project cost, which will be a required application field. The incentives will be available throughout CCCE service area and are subject to change based on CCCE’s discretion. The CCCE funded incentives will be paid by the CONTRACTOR and dispersed through the Contractor’s Incentive Clearinghouse to provide a seamless experience to market actors.
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Single Family Incentives
Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for single family homeowner customers converting from a gas or propane HVAC to all-electric HPHVAC.
Table 2: Unitary/Split System Heat Pump HVAC Incentives Equipment
Type* Size Category Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
Unitary Split Baseline HP Replacement $2,500
System and
mini/multi- < 5.4 tons Ducted 1 16.0 SEER 9.5 $3,000
split 2 18.0 SEER 10.0 $3,500
*Incentives available for installations providing full-home heating/cooling. Load calculations showing the installed mini-/multi-split serves full home will be required as part of the application.
The Program will provide an added incentive to income qualified applicants installing a HVAC measure.
The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.
Table 3: Income Qualified Kicker - HPHVAC
Measure Qualifier
CCCE
Incentive
per Unit
Low-Income Kicker CARE/FERA enrollment $1,000
Heat Pump Water Heater (HPWH) Measures
The Program will provide incentives for single family homeowner customers converting from a gas or propane water heater to all-electric HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive.
Table 4: Heat Pump Water Heater Incentives
Previous WH Fuel
Type HPWH Capacity
CCCE
Incentive
per Unit
Natural Gas/Propane < 55 Gallons $3,300
> 55 Gallons $3,800
The Program will provide an added incentive to income qualified applicants installing HPWH measure.
The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.
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Table 5: Income Qualified Kicker - HPWH
Measure Qualifier
CCCE
Incentive
per Unit
Low-Income Kicker CARE/FERA enrollment $1,000
Panel Replacement Measures
The Program will offer incentives for panel replacements or upgrades to single family homeowner customers that increase the effective panel capacity to support additional electrical load related to the installation of HPHVAC or HPWH measures. This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
Table 6: Panel Upgrade and Replacement Incentives
Measure Category
CCCE
Incentive per
Unit
Panel upgrade $2,000
Multi-Family Incentives
Gas to Electric HPWH
The Program will provide incentives for multifamily building owner customers converting from a gas or propane water heater to all-electric HPWH.
Table 7: Multifamily Unit HPWH Incentives
Measure Market Rate
Incentives per Unit
Low Income
Incentives per
Unit
Gas/propane to HPWH - unitary $2,100 $2,800
upsizing kicker Gas/propane to
HPWH - unitary $1,050 $1,400
non HPWH to HPWH - central $1,800 $2,400
upsizing kicker non HPWH to
HPWH - central $900 $1,200
Panel/Electricalservice
upgrade* $2,000 $2,800
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
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Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for multifamily building owner customers converting from a gas or propane HVAC to all-electric HPHVAC.
Table 8: Multifamily Unit HP HVAC Incentives
Measure Market Rate Incentives
per Unit
Low Income
Incentives per
Unit
Split or Rooftop HP - individual apt. $3,000 $4,000
PTHP, SPVHP, unitary through the
wall - individual apt. $750 $1,000
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$1,500 $2,000
HP HVAC - multiple apts. $1,500 $2,000
Split or Rooftop HP - common area $2,700 $3,600
PTHP, SPVHP, unitary through the
wall - common area $450 $600
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$1,200 $1,600
Panel/Electricalservice upgrade $2,000 $2,800
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
TECH Clean California Data Sharing
CCCE acknowledges and agrees that over the course of CONTRACTOR carrying out its obligations under this agreement, customer program participation data may need to be disclosed to CONTRACTOR’S subcontractors and representatives carrying out their obligations under the TECH Clean California program. In its agreements with subcontractors and representatives, CONTRACTOR will require the same adherence to all confidentiality and data security measures described by this Agreement, including Section 10. Record and Confidentiality and Exhibit C: Procedures for Release of Covered Information. CONTRACTOR is solely responsible for any breach or non-compliance of these terms by its TECH Clean California subcontractors or CONTRACTOR representatives in safeguarding confidential information in accordance with this Agreement.
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Exhibit B-1: Payment Terms
Incentive Reimbursement
CONTRACTOR will pay incentives and be reimbursed by CCCE to simplify payment process.
CONTRACTOR will provide invoices with details of incentive payments as well as fixed price and performance payments in a format required by CCCE. Invoices will be submitted to CCCE by the 15th of each month.
Budget
CONTRACTOR will be compensated with an administration budget based on a fixed price (Fixed Price Start-Up Fee) and performance basis (Performance Payment). The Fixed Price Start-Up Fee and Performance Payment covers all the services in the Scope of Work. The Fixed Price Start-Up Fee covers costs associated with Program start-up, including 1) contractor outreach and enrollment across CCCE’s service area; 2) coordination with additional TECH Clean California Initiative activities, including but not limited to contractor outreach, contractor training, vendor engagement, data analysis, data reporting, marketing, and pilot activities; and 3) configuration of the Incentive Clearinghouse. The Program Implementation Fee covers ongoing services described in the Scope of Work. The Fixed Price Start-Up Fee shall be $50,000 and the Program Implementation Fee shall be 7% of all incentives paid out over $500,000. Associated with Program start-up, the Fixed Price Start-Up Fee will be invoiced upon receiving the Program’s first claim through the Incentive Clearinghouse and demonstration of completed activities 1 – 3 above, deemed satisfactory by CCCE. Tables 1 and 2 below provide a breakdown of the budget and budget thresholds for each building type.
Table 1: Budget Breakdown
Expense Type Total
Incentive Reimbursement $1,600,000
Administration Costs $160,000
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $110,000
Total Costs $1,760,000
Table 2. Budget per Category
Category Minimum Budget Maximum Budget Per Project
Single Family (SF) $600,000 $100,000*
Multi-Family (MF) $400,000 $100,000
Low-Income (SF or MF) $200,000 $200,000
*Includes large group single family projects such as a military base.
These budgets per category are intended to promote geographic equity and diversity across the Program’s projects. Incentive caps per category may be changed at CCCE's discretion and documented in email.
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CENTRAL COAST COMMUNITY ENERGY
STANDARD SERVICES AGREEMENT
This Agreement is made by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”), a California corporation with its principal place of business located at 449 15th Street, Suite 400, Oakland, CA . 3CE and CONTRACTOR may be individually referred to herein as “Party” or collectively as “Parties.” In consideration of the mutual covenants and conditions set forth in this Agreement, the Parties agree as follows:
1. GENERAL DESCRIPTION
1.1. 3CE hereby engages CONTRACTOR to perform, and CONTRACTOR hereby agrees to perform, the services described in Exhibits A in conformity with the terms of this Agreement. The goods and/or services are generally described as services to implement a Residential Electrification Program for CCCE customers.
2. PAYMENT PROVISIONS
2.1. 3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B, subject to the limitations set forth in this Agreement. The total amount payable by 3CE to CONTRACTOR under this Agreement shall not exceed the sum of $1,760,000.00.
3. TERM OF AGREEMENT
3.1. The term of this Agreement is from the date of execution until September 30th, 2022, unless sooner terminated pursuant to the terms of this Agreement. This Agreement is of no force or effect until signed by both the CONTRACTOR and 3CE, with 3CE’s execution to be last in time.
CONTRACTOR may not commence work under this Agreement before 3CE signs this Agreement.
3.2. 3CE reserves the right to cancel this Agreement, or any extension of this Agreement, without cause with thirty (30) days written notice, or with cause immediately.
4. SCOPE OF SERVICES AND ADDITIONAL PROVISIONS
4.1. The following attached exhibits are incorporated herein by reference and constitute a part of this Agreement:
4.1.1.Exhibit A: Scope of Services
4.1.2.Exhibit B: Payment Terms
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5. PERFORMANCE STANDARDS
5.1. CONTRACTOR warrants that CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors performing services under this Agreement are specially trained, experienced, competent, and appropriately licensed to perform the work and deliver the services required under this Agreement and are not employees of 3CE or immediate family of an employee of 3CE.
5.2. CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors shall perform all work in a safe and skillful manner and in compliance with all applicable laws and regulations. All work performed under this Agreement that is required by law to be performed or supervised by licensed personnel shall be performed in accordance with such licensing requirements.
5.3. CONTRACTOR shall furnish, at its own expense, all materials, equipment, and personnel necessary to carry out the terms of this Agreement, except as otherwise specified in this Agreement. CONTRACTOR shall not use 3CE premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement.
6. PAYMENT CONDITIONS
6.1. Prices shall remain firm for the initial term of the Agreement and, thereafter, may be adjusted annually as provided herein. 3CE does not guarantee any minimum or maximum amount of dollars to be spent under this Agreement.
6.2. Negotiations for rate changes shall be commenced, by CONTRACTOR, a minimum of ninety days (90) prior to the expiration of the Agreement. Rate changes are not binding unless mutually agreed upon in writing by 3CE and the CONTRACTOR.
6.3. Invoices shall be submitted monthly on a form acceptable to 3CE and provide sufficient detail, as determined by 3CE, of services rendered for the invoiced period.
6.4. 3CE shall certify the invoice for payment in either the amount requested, or in such other amount as 3CE determines is due in conformity with this Agreement. Invoices shall be certified and paid within 45 days of submission to 3CE.
7. TERMINATION
7.1. During the term of this Agreement, 3CE may terminate the Agreement for any reason by giving written notice of termination to the CONTRACTOR at least thirty (30) days prior to the effective date of termination. Such notice shall set forth the effective date of termination. In the event of such termination, the amount payable under this Agreement shall be reduced in proportion to the services provided prior to the date of termination.
7.2. Either Party may provide notice to the breaching Party of the non-breaching Party’s intent to cancel and terminate this Agreement for Good Cause (defined below). Termination shall occur DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B
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if the Parties fail to agree on a plan for the breaching Party to cure within fifteen (15) days of the breaching Party’s receipt of such notice. “Good Cause” includes the failure of CONTRACTOR to perform the required services at the time and in the manner provided under this Agreement, or failure for 3CE to render payment for completed services following CONTRACTOR’s written demand for payment, in accordance with Exhibit B – Payment Conditions. If either Party terminates this Agreement for Good Cause, 3CE may be relieved of payment for work not performed and 3CE may proceed with the work in any manner, which 3CE deems proper.
8. INDEMNIFICATION
8.1. CONTRACTOR shall indemnify, defend, and hold harmless 3CE, its Directors, Board members, officers, agents and employees from any claim, liability, loss, injury or damage arising out of, or in connection with, performance of this Agreement by CONTRACTOR and/or its agents, employees or sub-contractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of personnel employed by 3CE. It is the intent of the parties to this Agreement to provide the broadest possible coverage for 3CE. The CONTRACTOR shall reimburse 3CE for all costs, attorneys’ fees, expenses and liabilities incurred with respect to any litigation in which the CONTRACTOR is obligated to indemnify, defend and hold harmless 3CE under this Agreement.
8.1.1.The CONTRACTOR’s selection of counsel to satisfy CONTRACTOR’s defense and hold harmless obligation as set forth in section 8.1 above, shall be subject to review and approval by 3CE.
8.1.2.Notwithstanding any other provision of this Agreement, 3CE shall be entitled to participate fully in the defense of any claim or action.
9. INSURANCE REQUIREMENTS
9.1. Prior to commencement of this Agreement, the CONTRACTOR shall provide a “Certificate of Insurance” certifying that coverage as required herein has been obtained. Individual endorsements executed by the insurance carrier shall accompany the certificate. In addition, the CONTRACTOR upon request shall provide a certified copy of the policy or policies. This verification of coverage shall be sent to 3CE.
9.2. Without limiting CONTRACTOR’s duty to defend and indemnify, CONTRACTOR shall maintain in effect throughout the term of this Agreement a policy or policies of insurance with the following minimum limits of liability:
9.2.1.1. Commercial General Liability Insurance, including but not limited to premises and operations, including coverage for Bodily Injury and Property Damage, Personal Injury, Contractual Liability, Broad form Property Damage, Independent Contractors, Products and Completed Operations, and cross-liability with a combined single limit for Bodily Injury and Property Damage of not less than $1,000,000 per occurrence, and $2,000,000 in the aggregate.
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9.2.1.2. Business Automobile Liability Insurance, covering all motor vehicles, including owned, leased, non-owned, and hired vehicles, used in providing services under this Agreement, with a combined single limit for Bodily Injury and Property Damage of not less than $500,000 per occurrence.
9.2.1.3. Workers’ Compensation Insurance, if CONTRACTOR employs others in the performance of this Agreement, in accordance with California Labor Code section 3700 and with Employer’s Liability limits not less than $1,000,000 each person, $1,000,000 each accident and $1,000,000 each disease.
9.2.1.4. Professional Liability Insurance, if required for the professional services being provided, (e.g., those persons authorized by a license to engage in a business or profession regulated by the California Business and Professions Code), in the amount of not less than $1,000,000 per claim and $2,000,000 in the aggregate, to cover liability for malpractice or errors or omissions made in the course of rendering professional services. If professional liability insurance is written on a “claims-made” basis rather than an occurrence basis, the CONTRACTOR shall, upon the expiration or earlier termination of this Agreement, obtain extended reporting coverage (“tail coverage”) with the same liability limits. Any such tail coverage shall continue for at least three years following the expiration or earlier termination of this Agreement.
9.3. Unless otherwise specified by this Agreement, all such insurance shall be written on an occurrence basis, or, if the policy is not written on an occurrence basis, such policy with the coverage required herein shall continue in effect for a period of three years following the date CONTRACTOR completes its performance of services under this Agreement.
9.4. Commercial general liability and automobile liability policies shall provide an endorsement naming 3CE, its Directors, Board members, officers, agents, and employees as Additional Insureds with respect to liability arising out of the CONTRACTOR’S work, including ongoing and completed operations, and shall further provide that such insurance is primary insurance to any insurance or self-insurance maintained by 3CE and that the insurance of the Additional Insureds shall not be called upon to contribute to a loss covered by the CONTRACTOR’S insurance.
10. RECORD AND CONFIDENTIALITY
10.1. “Confidential Information” is defined as certain confidential, secret and proprietary information, disclosed either orally or in writing or in printed, graphic or electronically recorded materials, records, data, specifications, formulas, technology, inventions, devices, products, methods, know-how, processes, financial data, specific client data and requirements, client and potential client lists, information concerning each Parties employees, agents or divisions, pricing information, and other trade secrets which have been or will be developed and owned by either of the Parties or their respective client(s).
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10.1.1. Confidential Information specifically includes Covered Information (as defined in Exhibit C), including Protected Personal Information(“PPI”) that identifies, relates to, describes, or is capable of being associated with, or could reasonably be linked, directly or indirectly, with a consumer, household, or customer account. All such Covered Information and PPI must fully be protected from disclosure as set forth in California Public Utility Commission Decision D.12-08-045. In the event of an unauthorized release of Covered Information and PPI, CONTRACTOR shall comply with Exhibit C, Procedures for Unauthorized Release of Covered Information.
10.2. The Parties and their respective officers, employees, agents, and subcontractors shall comply with any and all federal, state, and local laws, which provide for the confidentiality of records and other information. A Party receiving Confidential Information (the “Receiving Party”) shall not disclose any confidential records or other Confidential Information received from the other Party (the “Disclosing Party”) or prepared in connection with the performance of this Agreement, unless the Disclosing Party specifically permits the Receiving Party to disclose such records or information. The Receiving Party shall promptly transmit to 3CE any and all requests for disclosure of any such confidential records or Confidential Information. The Receiving Party shall not use any Confidential Information gained by the Receiving Party in the performance of this Agreement except for the sole purpose of carrying out the Receiving Party’s obligations under this Agreement.
10.3. Upon expiration or termination of this Agreement, the Receiving Party shall return to the Disclosing Party any Disclosing Party records which the Receiving Party used or received from the Disclosing Party to perform services under this Agreement.
10.4. CONTRACTOR shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and local rules and regulations related to services performed under this Agreement. CONTRACTOR shall maintain such records for a period of at least three years after receipt of final payment under this Agreement. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the three-year period, then CONTRACTOR shall retain said records until such action is resolved.
10.5. 3CE shall have the right to examine, monitor and audit all records, documents, conditions, and activities of the CONTRACTOR and its subcontractors related to services provided under this Agreement. Pursuant to Government Code section 8546.7, if this Agreement involves the expenditure of public funds in excess of $10,000, the parties to this Agreement may be subject, at the request of 3CE or as part of any audit of 3CE, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.
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10.6. CONTRACTOR shall not publish any and all original computer programs, writings, sound recordings, pictorial reproductions, drawings, and other works of similar nature without the prior written approval of 3CE.
11. INTELLECTUAL PROPERTY RIGHTS
11.1 “Iris Platform” is defined as the Iris online software and associated data, owned and maintained by CONTRACTOR and provided as a part of the services to 3CE under this Agreement, that functions as an incentive processing and program reporting platform for 3CE’s customers and other third parties.
11.2 Intellectual Property Rights to the Iris Platform. All right, title, and interest in and to the Iris Platform (including without limitation all intellectual property rights therein) and all modifications, improvements, extensions, customizations, scripts or other definitive works of the Iris Platform provided or developed by the CONTRACTOR, whether prior to or during the Term of this Agreement, are and shall remain at all times solely vested in the CONTRACTOR. The Iris Platform was developed in its entirety by CONTRACTOR prior to the term of this Agreement, is the sole and exclusive property of CONTRACTOR, and CONTRACTOR retains all intellectual property rights thereto, including but not limited to copyrights (including all registrations and applications therefor), trade secrets, service marks, trademarks, trade names, trade dress, trademark applications and registrations, internet domain names, and all other proprietary and intellectual property rights, including moral rights.
Use of the Iris Platform by 3CE, its customers or any third party as part of the services shall not convey any rights of ownership to the Iris Platform, express or implied, including any intellectual property rights thereto, to any such party. During the term of this Agreement, CONTRACTOR grants to 3CE a non-exclusive, non-assignable, royalty-free, worldwide limited right to access and use the Iris Platform in connection with the services. Except as expressly provided herein, Company agrees not to assign, sublicense, transfer, copy, reproduce, distribute, republish, display, post or transmit in any form or by any means, any part of the Iris Platform to any third party. 3CE agrees not to access the Iris Platform by any means other than through the interfaces that are provided by CONTRACTOR.
Notwithstanding any conflicting terms of this Agreement, the Iris Platform and any and all works, expressions, inventions, ideas, discoveries, improvements and developments made to the Iris Platform by any person during the term of this Agreement, are explicitly excluded as "work for hire" pursuant to this Agreement.
Any data provided by 3CE to CONTRACTOR on the Iris Platform remains the property of 3CE and, upon request, shall be exported and/or deleted from the Iris Platform.
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with the services; provided, however, that if any Terms of Use applicable to 3CE employees conflict with any provisions of this Agreement, with respect to 3CE's use of the Iris Platform in connection with the services, the provision of this Agreement shall control.
12. NON-DISCRIMINATION
12.1. During the performance of this Agreement, CONTRACTOR, and its subcontractors, shall not unlawfully discriminate against any person because of race, religious creed, color, sex, national origin, ancestry, physical disability, mental disability, medical condition, marital status, age (over 40), or sexual orientation, either in CONTRACTOR’s employment practices or in the furnishing of services to recipients. CONTRACTOR shall ensure that the evaluation and treatment of its employees and applicants for employment and all persons receiving and requesting services are free of such discrimination. CONTRACTOR and any subcontractor shall, in the performance of this Agreement, fully comply with all federal, state, and local laws and regulations which prohibit discrimination. The provision of services primarily or exclusively to such target population as may be designated in this Agreement shall not be deemed to be prohibited discrimination.
13. INDEPENDENT CONTRACTOR
13.1. In the performance of work, duties, and obligations under this Agreement, CONTRACTOR is at all times acting and performing as an independent contractor and not as an employee of 3CE. No offer or obligation of permanent employment with 3CE and CONTRACTOR shall not become entitled by virtue of this Agreement to receive from 3CE any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. CONTRACTOR shall be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of CONTRACTOR’s performance of this Agreement. In connection therewith, CONTRACTOR shall defend, indemnify, and hold 3CE harmless from any and all liability which 3CE may incur because of CONTRACTOR’s failure to pay such taxes.
14. NOTICES
14.1. Notices required under this Agreement shall be delivered personally, by email, or by first-class, postage pre-paid mail to 3CE and CONTRACTOR’S contract administrators at the addresses listed below. In the case of email, Notices are considered received upon the date of confirmation of receipt or read receipt:
Central Coast Community Energy CONTRACTOR
Chief Financial Officer Contract Services
70 Garden Court, Suite 300 449 15th Street, Suite 400
Monterey, Ca 93940 Oakland, CA 94612
Email: [email protected] Email: [email protected] DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B
3/9/2022 8 Contract Number: ______________
15. MISCELLANEOUS PROVISIONS
15.1. Conflict of Interest. CONTRACTOR represents that it presently has no interest and agrees not to acquire any interest during the term of this Agreement, which would directly, or indirectly conflict in any manner or to any degree with the full and complete performance of the services required to be rendered under this Agreement.
15.2. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by CCCE and the CONTRACTOR.
15.3. Waiver. Any waiver of any terms and conditions of this Agreement must be in writing and signed by 3CE and the CONTRACTOR. A waiver of any of the terms and conditions of this Agreement shall not be construed as a waiver of any other terms or conditions in this Agreement.
15.4. Contractor. The term “CONTRACTOR” as used in this Agreement includes CONTRACTOR’s officers, agents, and employees acting on CONTRACTOR’s behalf in the performance of this Agreement.
15.5. Disputes. CONTRACTOR shall continue to perform under this Agreement during any dispute.
15.6. Assignment and Subcontracting. The CONTRACTOR shall not assign, sell, or otherwise transfer its interest or obligations in this Agreement without the prior written consent of 3CE None of the services covered by this Agreement shall be subcontracted without the prior written approval of 3CE. Notwithstanding any such subcontract, CONTRACTOR shall continue to be liable for the performance of all requirements of this Agreement.
15.7. Successors and Assigns. This Agreement and the rights, privileges, duties, and obligations of 3CE and CONTRACTOR under this Agreement, to the extent assignable or delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, and heirs.
15.8. Compliance with Applicable Law. The parties shall comply with all applicable federal, state, and local laws and regulations in performing this Agreement.
15.9. Headings. The headings are for convenience only and shall not be used to interpret the terms of this Agreement.
15.10. Time is of the Essence. Time is of the essence in each and all of the provisions of this Agreement.
15.11. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California.
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B
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15.12. Non-exclusive Agreement. This Agreement is non-exclusive and both 3CE and CONTRACTOR expressly reserve the right to contract with other entities for the same or similar services.
15.13. Construction of Agreement. 3CE and CONTRACTOR agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement.
15.14. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.
15.15. Authority. Any individual executing this Agreement on behalf of 3CE or the CONTRACTOR represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement.
15.16. Integration. This Agreement, including the exhibits, represent the entire Agreement between 3CE and the CONTRACTOR with respect to the subject matter of this Agreement and shall supersede all prior negotiations, representations, or agreements, either written or oral, between 3CE and the CONTRACTOR as of the effective date of this Agreement, which is the date that 3CE signs the Agreement.
15.17. Interpretation of Conflicting Provisions. In the event of any conflict or inconsistency between the provisions of this Agreement and the Provisions of any exhibit or other attachment to this Agreement, the provisions of this Agreement shall prevail and control.
Energy Solutions Central Coast Community Energy
BY:__________________________________ BY:______________________________________ Title:_____________________________ Tom Habashi, CEO
Date: ____________________________ Date: ____________________________ Approved as to Form
BY:______________________________________
Brian Kimball, General Counsel
Date: ____________________________
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Director, Energy Efficiency
3/9/2022
3/11/2022
3/11/2022
3/9/2022 10 Contract Number: ______________
Approved as to Financial Terms
BY:______________________________________
Jaya Bajpai, Chief Financial Officer
Date: ____________________________
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/10/2022
3/9/2022 11 Contract Number: ______________
Exhibit A: Scope of Services
Task 1 - Program Administration
Consultant will collaborate with CCCE to develop, implement, and manage the Program with activities including, but not limited to program budget and tracking and representing CCCE’s interests with third parties and participating contractors. Consultant will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.
Activities:
• In Person meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
Consultant will provide reports to CCCE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, our software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit CCCE’s preferences.
Consultant will prepare a monthly report with a summary of current participation and performance indicators that are determined by Consultant and approved by CCCE.
These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and Consultant.
Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. Consultant will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.
Deliverables:
• Raw data provided ad hoc.
Task 3 - Contractor Outreach
Consultant will leverage trade ally outreach efforts of TECH to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. Consultant will work with contractors to create installs in CCCE territory and provide support on how to submit applications through the DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B
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Incentive Clearinghouse. Contractors enrolled in TECH will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.
Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all TECH incentives. This feature will be used for statewide, pilot, and regional incentives offered by TECH, and will be essential to scale and integrate new initiatives as building electrification is more widely adopted. The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse is to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.
Consultant will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.
Consultant will pay process, QA/QC and pay incentives for CCCE on the clearinghouse. Payments to contractors will combine both CCCE and TECH incentives into a single check paid to participants to simplify the payment process.
Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives • Processing and Payment of CCCE Incentive applications.
Estimated Percentage of Time Per Task:
Task Estimated Percent of Time
Task 1 – Program Administration 30%
Task 2 – Monthly Data Reports 20%
Task 3 – Contractor Outreach 20%
Task 4 – Incentive Clearinghouse 30%
Program Duration
Program duration is at the discretion of CCCE, but the current proposal assumes the program will run from July 1, 2022, through July 1st, 2025, or until the budget is spent.
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B
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Program Incentives and Implementation
Incentive Plan
The below tables show the incentive values for HP HVAC and HPWH measures. In all cases, the incentive is limited by the project cost, which will be a required application field. The incentives will be available throughout CCCE territory.
Single Family Incentives
Heat Pump HVAC Measures
TECH plans to offer baseline incentives of $3,000 per unit to all Gas IOU customers in California. TECH is seeking to partner with other program administrators that want to provide incentives to support quicker adoption by supporting an enhanced incentive structure that offers up to $3,600 in additional incentives. Consultant proposes that CCCE funds $1,500 per HP HVAC installation, which will allow the TECH to provide complementary incentives for the installation of higher efficiency equipment with higher installation quality. These CCCE funded incentives will be paid by the Consultant and dispersed through the Incentive Clearinghouse with the TECH funds to provide a seamless experience to market actors.
Table 1: Unitary/Split System Heat Pump HVAC Incentives *Incentives available for installations providing full-home heating/cooling. Load calculations showing the installed mini-/multi-split serves full home will be required as part of the application. **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.
Energy Solutions will inform CCCE of any potential changes to TECH incentives.
Table 2: Heat Pump HVAC Quality Installation Bonuses
Quality Installation Measure* Qualifier
CCCE
Incentive
per Unit
TECH
Incentive per
Unit**
Total
Incentive per
Unit
Manual J Completed Provide Calculations $0 $600 $600
Duct Testing and Sealing 5% Total leakage or less $0 $600 $600 Equipment
Type
Size
Category
Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
TECH
Incentive
per
Unit**
Total
Incentive
per Unit
Unitary Split
System and
mini/multi-split
< 5.4 tons Ducted
Baseline HP Replacement $1,500 $1,500 $3,000
1 16.0 SEER 9.5 $1,500 $2,400 $3,900
2 18.0 SEER 10.0 $1,500 $3,300 $4,800
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B
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Field Measured Performance
(based on ASHRAE 221-2020)
Heating System Performance Ratio (HSPr)
or Cooling System Performance Ratio
(CSPr) = 80% or better
$0 $600 $600
*Incentives only available as add-on bonuses to heat pump installation. **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.
Energy Solutions will inform CCCE of any potential changes to TECH incentives.
The HP HVAC measures are for gas to heat pump conversion scenarios only. In all cases, the applicant must show that the gas equipment has either been fully decommissioned or setup to run in emergency scenarios only. In addition, the HP HVAC incentives are based on heat pumps that provide full-home heating and cooling. The incentives are available in cases when the customer does not have previous cooling.
CCCE would also be funding a low-income adder, with a flat rate of $1,000/unit.
Measure Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit
Total
Incentive
per Unit*
Low-Income Kicker CARE/FERA enrollment $1,000 $0 $1,000 Heat Pump Water Heater Measures
The Program will offer incentives for customers converting from a gas, propane, or electric resistance water heater to HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive. Like the HP HVAC measures, TECH plans to offer baseline incentives for HPWH’s but will offer an enhanced incentive structure (up to a total of $6,600) for partners that want to provide incentives for these technologies. The enhanced incentive structure will support additional incentives for replacing electric resistance water heaters and for panel upgrades needed in conjunction with HPWH installations. Consultant proposes that CCCE offer $1,500 for gas to electric conversions. These incentives will be funded by CCCE and distributed by the Consultant with the complimentary TECH incentives. This contribution of funding enables TECH to offer complimentary incentives that are more attractive for replacing electric resistance replacement, and enable electric panel upgrades, overcoming a major barrier to many installations.
Table 3: Heat Pump Water Heater Incentives
Previous WH Fuel
Type HPWH Capacity
CCCE
Incentive
per Unit
TECH
Incentive
per Unit*
Total
Incentive
per Unit
Natural Gas/Propane
< 55 Gallons $1,500 $1,600 $3,100
> 55 Gallons $1,500 $2,300 $3,800
Electric resistance All $0 $1,500 $1,500
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.
Energy Solutions will inform CCCE of any potential changes to TECH incentives.
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B
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Table 4: Panel Upgrade/Smart Load Center Incentives
Measure Category Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit**
Total
Incentive
per Unit
Panel upgrade Up to 200 amps
$1,000 $1,800 $2,800
Smart Load Center* None
*Incentives only available as add-on bonuses to heat pump water heater installation **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.
Energy Solutions will inform CCCE of any potential changes to TECH incentives.
The incentive rates for natural gas or propane to HPWH are differentiated to support upsizing HPWHs to ensure the units have capacity to run primarily in heat pump mode, while also having load available to shift out of peak demand periods.
TECH will offer panel upgrade incentives for customers sizing up to 200 amps or installing a smart load center if the smart load center increases the effective panel capacity to support the added electrical load from the HPWH.
CCCE would also be funding a low-income adder, with a flat rate of $1,000/unit Measure Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit
Total
Incentive
per Unit
Low-Income Kicker CARE/FERA enrollment $1,000 $0 $1,000 Consultant will re-evaluate incentive levels and participation after the first year, 2022, to determine whether the incentive design should be updated to meet the needs of CCCE and TECH. The soon to be released 120-volt “plug-in” HPWHs will be eligible for the incentive amount associated with the previous water heater fuel type. Consultant may establish a future measure category specifically available for the 120-volt HPWHs once more data on unit install cost are collected.
Multi-Family Incentives
Multifamily incentives are proposed to be 50% of current TECH offering for market rate incentives and 100% of the TECH incentives for low income. These incentives reflect similar incentives offered by other Program Administrators in the state and can be layered directly with the TECH incentives. This format will ensure that there is little confusion with multifamily contractors.
Gas to Electric HPWH
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B
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Measure CCCE Market Rate
Incentives
CCCE Low
Income
Incentives
TECH
Layered
Incentives*
Gas/propane to HPWH - unitary $700 $1,400 $1,400
upsizing kicker Gas/propane to
HPWH - unitary
$350 $700 $700
non HPWH to HPWH - central $600 $1,200 $1,200
upsizing kicker non HPWH to
HPWH - central
$300 $600 $600
Panel/Electrical service upgrade $700 $1,400 $1,400
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.
Energy Solutions will inform CCCE of any potential changes to TECH incentives.
Gas to Electric HP HVAC Incentives
Measure CCCE Market Rate
Incentives
CCCE Low
Income
Incentives
TECH Layered
Incentives*
Split or Rooftop HP - individual apt. $1,000 $2,000 $2,000 PTHP, SPVHP, unitary through the
wall - individual apt.
$250 $500 $500
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$500 $1,000 $1,000
HP HVAC - multiple apts. $500 $1,000 $1,000
Split or Rooftop HP - common area $900 $1,800 $1,800
PTHP, SPVHP, unitary through the
wall - common area
$150 $300 $300
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$400 $800 $800
Panel/Electrical service upgrade $700 $1,400 $1,400
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.
Energy Solutions will inform CCCE of any potential changes to TECH incentives.
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B
3/9/2022 17 Contract Number: ______________
Exhibit B: Payment Terms
Incentive Reimbursement
Consultant will pay incentives and be reimbursed by CCCE to simplify payment process. Consultant will provide invoices with details of incentive payments as well as fixed price and performance payments in an agreed upon between Consultant and CCCE. Invoices will be submitted to CCCE by the 15th of each month.
Budget
Consultant will be compensated with an administration budget based on a fixed price (Fixed Price Start-Up Fee) and performance basis (Performance Payment). The Fixed Price Start-Up Fee and Performance Payment covers all the services in the Scope of Work. The Fixed Price Start-Up Fee covers costs associated with Program start-up, including 1) contractor outreach and enrollment across CCCE’s service area, 2) coordination with additional TECH activities, and 3) configuration of the Incentive Clearinghouse. The Program Implementation Fee covers ongoing services described in the Scope of Work. The Fixed Price Start-Up Fee shall be $50,000 and the Program Implementation Fee shall be 10% of all incentives paid out over $500,000. Associated with Program start-up, the Fixed Price Start-Up Fee will be invoiced upon receiving the Program’s first claim through the Incentive Clearinghouse and satisfactory demonstration of completed activities 1 – 3 above. Table 6 below provides the key performance indicators and budget for the Program.
Table 5: Budget and Participation Estimates
Key Metric Total
Estimated HP HVAC Units 667
Estimated HPWH Units 400
Incentive Reimbursement $1,600,000
Total Administration Costs $160,000
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $110,000
Total Costs $1,760,000
Table 6. Budget per Category
Category Minimum Budget Maximum Budget Per Project
Single Family (SF) $600,000 $100,000*
Multi-Family (MF) $400,000 $100,000
Low-Income (SF or MF) $200,000 $200,000
*Includes large group single family projects such as a military base.
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B
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These budgets per category are intended to promote geographic equity and diversity across the Program’s projects. Incentive caps per category may be changed through agreement with both parties and documented in email.
Exhibit C: Procedures for Unauthorized Release of Covered Information SCOPE
CONTRACTOR hereby agrees to adhere to these Procedures for detecting and reporting the unauthorized release of Covered Information, including Protected Personal Information (“PPI”).
These Procedures apply to the following unauthorized release activities:
1. Unauthorized access
2. Unauthorized destruction
3. Unauthorized use
4. Unauthorized modification
5. Disclosure to third parties for Secondary Purposes (see below)
DEFINITIONS
Covered Entity – (1) any Community Choice Aggregator or Electrical Service Provider (when providing service to residential or small commercial customers), or any third party that provides services to a Community Choice Aggregator or Electrical Service Provider (when providing service to residential or small commercial customers) under contract, (2) any third party who accesses, collects, stores, uses or discloses covered information pursuant to an order of the Commission, unless specifically exempted, who obtains this information from an electrical corporation, a Community Choice Aggregator or an Electrical Service Provider (when providing service to residential or small commercial customers), or (3) any third party, when authorized by the customer, that accesses, collects, stores, uses, or discloses covered information relating to 11 or more customers who obtains this information from an electrical corporation, a Community Choice Aggregator or an Electrical Service Provider (when providing service to residential or small commercial customers).
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B
3/9/2022 19 Contract Number: ______________
Covered Information -- any usage information obtained through the use of the capabilities of Advanced Metering Infrastructure when associated with any information that can reasonably be used to identify an individual, family, household, residence, or non-residential customer, except that covered information does not include usage information from which identifying information has been removed such that an individual, family, household or residence, or non-residential customer cannot reasonably be identified or re-identified. Covered information, however, does not include information provided to the California Public Utilities Commission (the “Commission”) pursuant to its oversight responsibilities.
Primary Purposes – The “primary purposes” for the collection, storage, use, or disclosure of covered information, as outlined in Rule 1(c) of Attachment B, are to:
1. Provide or bill for electrical power or gas,
2. Provide for system, grid, or operational needs,
3. Provide services as required by state or federal law or as specifically authorized by an order of the Commission, or
4. Plan, implement, or evaluate demand response, energy management, or energy efficiency programs under contract with a Community Choice Aggregator or and Electrical Service Provider (when providing service to residential or small commercial customers), under contract with the Commission, or as part of a Commission authorized program conducted by a governmental entity under the supervision of the Commission.
Secondary Purposes – “Secondary purpose” means any purpose that is not a primary purpose.
Non-Covered Entity – “Non-Covered Entity” means any entity not defined as a Covered Entity.
Responsible Parties -- 3CE, CONTRACTOR, and any staff, employees, or sub consultants contracted by 3CE or CONTRACTOR.
PROCEDURE
Detecting and Reporting of Unauthorized Releases
1. All Responsible Parties are required to protect Covered Information from unauthorized release activities as set forth above.
2. Any request by any non-Covered Entities, for access to Covered Information must be reviewed and approved by an 3CE manager level employee to ensure no unauthorized or inadvertent release of Covered Information.
3. All authorized releases of Covered Information to Non-Covered Entities shall be logged and reported to 3CE on a quarterly basis.
4. Any discovery of any unauthorized release of Covered Information must be reported to 3CE within one week of detection.
Unauthorized Release Handling Procedure
1. The discovering party after detecting, or discovery of, the unauthorized release of Covered Information must contact 3CE’s Dir. of Finance and Administration (or another executive manager) immediately.
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2. CONTRACTOR will quantify and validate the type and extent of unauthorized release and report that information to 3CE’s Dir. of Finance and Administration in writing with sufficient detail for 3CE to determine the extent and impact of the unauthorized release.
3. CONTRACTOR shall prepare a written annual report of all discoveries of unauthorized releases of Covered Information.
Review and Training
1. At least annually, CONTRACTOR will review these Procedures with its staff, employees, or sub consultants.
2. Any proposed changes to these Procedures shall be provided in writing to 3CE’s Dir. of Finance and Administration for their consideration.
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B
DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-AD41CA02CF33 Amendment No. 3 To Agreement Between Energy Solutions and 3CE 1 AMENDMENT NO. 3
TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND
CENTRAL COAST COMMUNITY ENERGY
This Amendment No. 3 to the Services Agreement (“Agreement”) which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”); (3CE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:
RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of the Electrify Your Home Program (“Program”); and
WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining state incentive funds with the 3CE’s Program; and
WHEREAS, due to high demand, in May 2022, TECH Clean California Initiative funds became substantially reserved throughout CCCE’s service area, impacting the Program’s ability to provide CCCE customers with incentives at the desired levels to accelerate electrification; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022 to extend the Agreement, with no change to the Not to Exceed Amount, and to modify the Scope of Work to reflect changes in the TECH Clean California Initiative; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 2 to the Agreement on August 24, 2023 to extend the term of the Agreement to September 30, 2024, with no change to the Not to Exceed Amount, and to modify the Scope of Work to support victims of declared natural disasters and to more effectively leverage State Funds; and WHEREAS, in the Summer of 2023, the second release of TECH Clean California, combined with the Parties continued marketing and outreach efforts, and growing contractor participation led to rapid acceleration of Program applications, resulting in the substantial reservation of Program funds allowed under the contract; and WHEREAS, without changing the term of the Agreement, 3CE and CONTRACTOR seek to extend the Not to Exceed Amount of the Agreement by $1,500,000 for a total Not to Exceed Amount of $3,260,000 to further support building electrification and the DocuSign Envelope ID: 04EDE983-DB32-42B0-9231-2F12B0EDF8A9
DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-AD41CA02CF33 Amendment No. 3 To Agreement Between Energy Solutions and 3CE 2 Electrify Your Home Program throughout Fiscal Year 2023-24.
AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:
1. Amend Section 2.1 to read as follows:
3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B-1, subject to the limitations set forth in this Agreement. The total amount payable by 3CE to CONTRACTOR under this Agreement shall not exceed the sum of $3,260,000.00.
2. Amend Table 1: Budget Breakdown in Exhibit B-1 to read as follows:
Expense Type Total
Incentive Reimbursement $2,963,636
Administration Costs $296,634
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $246,364
Total Costs $3,260,000
3. The terms and conditions in this Amendment No. 3 shall control over any inconsistent terms and conditions in the original Agreement and Amendment No. 2.
4. A copy of this Amendment No. 3 shall be attached to the Original Agreement.
5. This Amendment No. 3 shall be effective when signed by both parties. [Signatures are on following page]
DocuSign Envelope ID: 04EDE983-DB32-42B0-9231-2F12B0EDF8A9
DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-AD41CA02CF33 IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.
Energy Solutions Central Coast Community Energy
BY: BY:
Title:_Chief Operating Officer
Date: 10/25/2023 |_2:40 PM PDT
Robert M. Shaw, CEO
Date:
Approved as to Form
BY:
Charles McKee, General Counsel
Date:
Approved as to Financial Terms
BY:
Dewayne Woods, Chief Financial Officer
Date:
10/25/2023 3 Contract Number: EP-2023-024
DocuSign Envelope ID: 04EDE983-DB32-42B0-9231-2F12B0EDF8A9 10/26/2023
10/30/2023
Staff Report Item 9
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Dennis Dyc-O’Neal, Chief Operating Officer SUBJECT: Approve and authorize the CEO to execute a Power Purchase Agreement (“PPA”) with SunZia Wind PowerCo, LLC, in a form substantially similar to the attached, as well as any necessary ancillary documents, including potential replacement PPA(s) with the same terms and conditions as the attached except for any necessary administrative changes, with a power delivery term of 15 years starting with an expected Commercial Operation Date of September 30, 2026, in an amount not to exceed $715,000,000 DATE: November 8, 2023
RECOMMENDATION:
This recommends the Operations Board approve and authorize CEO to execute a Power Purchase Agreement (“PPA”) with SunZia Wind PowerCo, LLC, in a form substantially similar to the attached, as well as any necessary ancillary documents, including potential replacement PPA(s) with the same terms and conditions as the attached except for any necessary administrative changes, with a Power Delivery Term of 15 years starting with an expected Commercial Operation Date of September 30, 2026, in an amount not to exceed $715,000,000.
BACKGROUND:
Central Coast Community Energy (“3CE”) seeks to serve 100% of its retail load with clean and renewable energy by 2030, fifteen years ahead of California’s 100% mandate. 2023 Renewable Energy and Storage Request for Offers
3CE launched a request for offers (“RFO”) in February 2023 targeting procurement of renewable energy and storage resources to help meet our internal goals and regulatory requirements. 3CE received a robust response to the RFO for 48 different projects. Staff evaluated these projects based on quantitative and qualitative criteria.
The RFO solicitation, shortlisting, and negotiations were each initiated prior to the Policy Board’s June approval of 3CE’s Project Selection Criteria which help to categorize projects based on market and regulatory value, local workforce, innovation, project location, environmental stewardship, and benefits accruing to underserved communities.
DISCUSSION/ANALYSIS:
Approval of the SunZia Wind PowerCo, LLC project (the “SunZia Project”) provides 3CE with a renewable generation profile that complements our existing portfolio, made up predominately of solar plus storage.
Projects were shortlisted and selected considering several factors, including an evaluation of the developer’s ability to perform, a quantitative evaluation of the project, and a review of qualitative criteria.
Developer
SunZia Wind PowerCo LLC is a wholly owned, indirect subsidiary of Pattern Energy Group, LP (“Pattern”).
The SunZia Project is being developed by Pattern, a San Francisco-based company that develops, owns, and operates utility-scale wind and solar facilities, as well as transmission projects.
Pattern markets itself as one of the world’s largest privately-owned developers and owns over 6 GW of operating wind, solar, and storage projects. In July 2022, Pattern became the primary owner and developer of the SunZia Transmission project, which is 550 miles of 525 kV direct current transmission line from New Mexico to south-central Arizona where it can tie directly to the CAISO. While transmission construction is an inherently lengthy process, we assess the risk with the SunZia Transmission as “low” because the transmission project began construction in September 2023.
Contribution to 3CE’s Mission and Goals
The SunZia Project is a critical component of meeting 3CE’s mission and goals of providing 100% of its retail demand through clean and renewable generation while stimulating the local economy and remaining cost competitive.
The SunZia Project’s qualitative performance was on par with or exceeded other submitted projects, in large part due to its complementary generation profile and the higher capacity factor of New Mexico wind.
New Mexico wind generally generates throughout
the day and peaks later in the day, when California
solar begins to wane. This generation profile
provides 3CE with needed evening ramp
generation resources, which can reduce 3CE’s
overall cost of energy by fixing a greater portion of
3CE’s demand profile with stable PPA pricing.
Additionally, the New Mexico wind profile would
reduce strain on the CAISO grid during net peak
hours.
The bid price of the SunZia Project is above the interquartile of the received bid submissions across all generation technologies; however, when compared with other submitted wind projects, the SunZia project provides 3CE with the highest benefit because of its lower pricing and higher capacity factor.
Serving approximately 11% of 3CE’s demand, the SunZia Project will represent substantial progress toward meeting 3CE’s 100% renewable by 2030 goal and contribute heavily toward 3CE’s compliance with Renewable Portfolio Standards (RPS). Its wind generation profile complements our existing solar project profile and will be valuable for Resource Adequacy (RA) compliance in the new RA 24-hour Slice of Day paradigm.
The SunZia Project’s expected Commercial Operation Date, in 2026, adds additional value as a potential resource for Mid-Term Reliability compliance.
Overview of the Project
Counterparty SunZia Wind PowerCo LLC
Parent Company Pattern Energy Group LP
Product As-available Wind PCC1 renewable energy, including Energy, Renewable Energy Credits, Resource Adequacy Benefits.
Delivery Term 15 years
September 30, 2026, through September 29, 2041
Project Name SunZia Wind
Contract Capacity 205 MW Wind
3CE will be taking a share of a planned Wind facility buildout of up to 3,515 MW
Percentage of 3CE Demand
Served
11%
Location Lincoln, Torrance and San Miguel Counties, New Mexico Not to Exceed Amount $715,000,000
Project Bifurcation or Transition and Replacement PPA(s) To facilitate project financing, SunZia Wind PowerCo LLC requires the ability to bifurcate or transition the project to an affiliate of SunZia Wind PowerCo LLC at a future date. If such bifurcation or transition were to occur, the affiliate would need to enter into one or two Replacement PPAs with 3CE and terminate the original PPA. The Replacement PPAs would have the same terms and conditions as the original PPA except for those administrative changes necessary to effectuate the transition or bifurcation. The Replacement PPA(s) need to be pre-approved by 3CE’s Board for this transaction to work. Pre-approval of these replacement PPA(s) is being requested as part of today’s PPA approval request.
Approval of the staff proposed SunZia wind project provides significant renewable generation to assist 3CE in providing our customers with clean and renewable energy. Adding wind generation helps diversify our portfolio and provides energy to charge our storage assets. Due to its location, the SunZia wind project produces a beneficial energy curve that reduces 3CE’s exposure over peak hours.
Workforce Development
Pattern is committed to paying the local New Mexico prevailing wage and providing health care coverage for all on-site employees. The project is supported by the local IBEW, Building Trades Council, and Green Chamber of Commerce.
Innovation
3CE supports projects that accelerate decarbonization while remaining cost competitive. Innovative projects can be those that introduce new technologies, achieve scale for existing technologies, or reduce barriers to the adoption of already scaled technologies.
The SunZia Project, located in a region with more constant wind speeds, coupled with the new SunZia Transmission project helps reduce barriers to the adoption of wind technology by providing a pathway to reliable wind resources in New Mexico. In total, the SunZia Transmission project will provide access to over 3,500 MW of abundant wind generation and transmit sufficient clean energy for over 3 million homes.
Location and Environmental Stewardship
The SunZia Project is located in central New Mexico but is pseudo-tied into the CAISO.
The United States Geological Survey determined the SunZia Project is not located in a protected area and the Bureau of Land Management issued its Record of Decision in May 2023. Pattern notes the SunZia Wind and Transmission projects have been developed with a deep commitment to environmental stewardship. Cultural resource surveys were conducted within the project area and the project is designed to avoid direct impacts to cultural resources.
Benefits Accrued to Underserved Communities
Pattern’s submission notes its meaningful engagement with local community-based organizations at the neighborhood, local, regional, and state levels. Pattern notes it has actively engaged with stakeholders and the general community throughout the project footprint to help address public concerns and provide updates on the project. For both SunZia Wind and SunZia transmission, several public information sessions and landowner events have been held to provide a venue for the community to interact with the Pattern team, ask questions, and address concerns. Pattern has sought to incorporate this feedback into the project and believes it has led to a better, more environmentally compatible, and socially responsible project.
FISCAL IMPACT:
The fiscal impact of the SunZia Wind project will not exceed $715 million over the 15-year term of the PPA.
CONCLUSION:
Approval of this PPA will provide enough renewable energy to meet approximately 11% of 3CE’s retail sales. It will also contribute to 3CE meeting our aggressive goal of 100% RPS by 2030, meeting our regulatory compliance obligations. Finally, the project provides a complementary renewable generation profile to our portfolio of solar, geothermal, wind, and energy storage projects to cost-effectively manage 3CE’s overall cost of energy.
ATTACHMENT(S):
1. PPA between SunZia Wind PowerCo LLC and 3CE (Redacted)
RENEWABLE POWER PURCHASE AND SALE AGREEMENT
This Renewable Power Purchase and Sale Agreement (“Agreement”) is entered into as of [_______], 2023 (the “Effective Date”), between Buyer and Seller. Buyer and Seller are sometimes referred to herein individually as a “Party” and jointly as the “Parties.”
RECITALS
WHEREAS, Seller intends to develop, design, construct, own, and operate the Facility; and
WHEREAS, Seller desires to sell, and Buyer desires to purchase, on the terms and conditions set forth in this Agreement, the Product;
NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the sufficiency and adequacy of which are hereby acknowledged, the Parties agree to the following:
ARTICLE 1
DEFINITIONS
1.1 Contract Definitions. The following terms, when used herein with initial capitalization, shall have the meanings set forth below:
“AC” means alternating current.
“Accepted Compliance Costs” has the meaning set forth in Section 3.12. “Adjusted Energy Production” has the meaning set forth in Exhibit E. “Affiliate” means, with respect to any Person, each Person that directly or indirectly controls, is controlled by, or is under common control with such designated Person. For purposes of this definition and the definition of “Permitted Transferee”, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any Person, shall mean (a) the direct or indirect right to cast at least fifty percent (50%) of the votes exercisable at an annual general meeting (or its equivalent) of such Person or, if there are no such rights, ownership of at least fifty percent (50%) of the equity or other ownership interest in such Person, or (b) the right to direct the policies or operations of such Person. “Agreement” has the meaning set forth in the Preamble and includes any Exhibits, schedules and any written supplements hereto, the Cover Sheet, and any designated collateral, credit support or similar arrangement between the Parties. “Alternative Delivery Point” means a Scheduling Point, as defined in the CAISO Tariff, other than the Delivery Point, that is agreed upon by Buyer and Seller. “Approved Meter” means a CAISO-approved revenue quality meter or meters, or if a CAISO approved meter is not consistent with PTO requirements, then a PTO-approved meter or