Operations Board of Directors
February 12, 2025
Consent Calendar 2-9
Approve minutes from the November 13, 2024, Operations Board special meeting Approve minutes from the November 13, 2024, Operations Board regular meeting Approve and authorize the CEO to execute a First Amendment to the Power Purchase Agreement with SF Jasmine, LLC, in a form substantially similar to the attached, and any necessary ancillary documents with no change to the previously Board-approved not to exceed amount Approve and authorize the CEO to execute an agreement with Salesforce Corporation for mass digital communications in an amount not to exceed $91,010, effective April 1, 2025, with an initial delivery term of 28 months and authorize the CEO to execute up to two (2) amendments that do not exceed 10% of the total purchase price, subject to approval by the General Counsel Update on 3CE's Energy Programs
Regulatory Update
Financial report for the period October 1, 2024, through November 30, 2024 Investment performance report for the period of October 1, 2023, through September 30, 2024
Item 10
Consider and appoint candidates for Operations Board Chair and Vice Chair
Item 11
CEO Report
a. Staffing update
b. Enrollment update
c. Staff proposed review of 2025 rates for potential adjustment d. CPUC Investment and General Order-167-C Proposal
e. Federal Action Limiting Funding for renewable generation and electrification f. Energy trade deal portal development update
Item 12
Presentation on Residential Battery Rebate Program performance and initial findings
Residential Battery Rebate Program Update
Operations Board
Chris Cook, PE
Director of Energy Programs
Agenda
Benefits of Battery Storage
Recap of Program Design
Program Goals & Performance
Program Enhancements
Future Opportunities
Questions
It is recommended that the Operations Board receive a presentation on the Residential Battery Rebate Program performance and initial findings.
Recommendation
Intermittent solar meeting demand in middle of day, then quickly ramp down Gas and other generation sources ramp up at end of day
Battery storage charges during low-cost hours and shifts renewable load to buffer net peak day requirements.
CAISO – Overall Supply Trend
Price increases during net peak hours with reduced use of solar and wind.
CAISO – Price Map
Benefits of Battery Storage
Enhanced
Grid
Reliability
Maximize Renewable Energy
Reduce Costs
Program Design
Post-purchase rebates available for cost and installation of behind-the-meter battery systems up to 26 kWh Discharge requirement of 50% of battery capacity during peak 4 PM- 9 PM Launched July 16, 2024
Program Offering
Base Incentive: 3Cchoice, 3Cprime, and NBT customers
$300 per kWh
NBT Early Adopters; CARE, FERA, & Medical Baseline
$500 per kWh
Customers received an average of $5,483 per application
Program Goals
Deployment of 400 battery systems
per FY (200 in 6 months)
15% of applications CARE/FERA
or otherwise income qualified
1 2
Goal 1
Applications Received versus Rebated
GOAL: Deployment of 400 battery systems per FY (200 in 6 months) 123 applications received
26 customer rebates with $127,800 distributed
86 applicants with approx. $472,000 of rebates pending
86 123
26 11
Load Shift Tracking
200 kWh of load shifted per day during 4 PM – 9 pm
Potential for ~1 MWh of load shift based on 123 applications received
Discharge Example
Customer’s Battery Discharge During Peak Period (4-9 pm)
Discharge Scheduling
Goal 2
7% of applications received are CARE/FERA enrolled
11% of applications received from Medical Baseline
24% of applications received with leased battery systems GOAL: 15% of applications CARE/FERA or otherwise income qualified *Applicants can be designated as more than one applicant type and may be cross listed.
Battery System Leases
Expanded Program Eligibility- Leased Systems
Alleviate additional burden of upfront cost
Improve accessibility for income-qualified customers
12 customers with leased systems rebated
More applications being finalized
Future Enhancements
Customer Facing Dashboard
Interact with battery schedule
Real-time view of energy consumption
See battery system’s discharge throughout the day
Customer education and awareness
Thank you
OPERATIONS BOARD
February 12, 2024
Item 13 Approve and authorize CEO to execute a Hybrid-Battery Energy Storage System Power Purchase Agreements with MRP Pacifica Marketing III, LLC for the Tracy Hybrid Project, in forms substantially similar to the attached, as well as any necessary ancillary documents, with a power delivery term of 15.5 years with a Start Date of January 1, 2027, in an amount not to exceed $783,000,000. (Action Item)
How we identified this project
3CE’s Policy Board unanimously supported an innovative hybrid-battery ESS approach to:
reduce existing natural gas facility emissions; while also, securing valuable Resource Adequacy product for 3CE through a hybrid natural gas power purchase agreement.
The Policy Board’s direction implemented a component of 3CE’s strategic approach to RA compliance.
Leveraging PPA projects to maximize RA value, including baseload renewables Accelerating battery storage buildout with varied tech and dispatch capabilities Layering short and long-term RA contracts to hedge against price volatility Control existing traditional dispatch resources
Developing short and long-term load shifting strategies that include DR.
In May 2024, 3CE issued a Request for Offers (RFO).
MRP Tracy was selected and shortlisted.
Tracy Hybrid PPA
Counterparty
MRP Pacifica Marketing III LLC
Parent Company
Middle River Power
Product
Existing Natural Gas Power Plants with new construction Battery Energy Storage System (BESS), providing Resource Adequacy (RA) benefits and dispatchable energy Delivery Term
15.5 years
January 1, 2027 – June 30, 2042
Project Name
Tracy Hybrid
Contract Capacity
98 MW Natural Gas Combined Cycle Gas Turbine (CCGT)
13.3 MW 8-hour discharge duration Lithium-Ion Battery Energy Storage System (BESS) This represents 1/3 of the total project size of 336 MW gas unity and 40 MW BESS, with two other CCAs taking 2/3 combined % of 3CE RA Obligation
18%
Location
Tracy, San Joaquin County, California
Not to Exceed Amount
$783,000,000
Project Selection Criteria
Selection was made inclusive of 3CE’s Project Selection Criteria 3CE’s Project Selection Criteria assesses potential projects based on six categories:
Ability to cost effectively meet 3CE’s regulatory obligations and 3CE’s goal of 100% Clean and Renewable by 2030 Workforce and Local Workforce Development
Innovation
Location
Environmental Stewardship
Benefits to Underserved and Low-Income Communities
Each category is ranked on a scale of Low, Medium, or High.
Ability to cost effectively meet 3CE’s regulatory obligations and 3CE’s goal of 100% Clean and Renewable by 2030 With the volatile Resource Adequacy (“RA”) market dynamics, inclusive of a major reform called the 24-hour Slice-of-Day paradigm that went live in 2025, this hybrid resource will provide valuable fixed-price RA benefits to ensure RA compliance for 3CE.
Tracy Hybrid will meet approximately 18% of 3CE’s RA obligation.
It will provide a cost-effective energy hedge to 3CE and the CAISO. During constrained market condition events and it is dispatched, the financial structure has the energy being purchased directly by the CAISO from Seller. Thus, there will be no reportable emissions on 3CE’s Power Content Label. 3CE will work to maximize the charging and discharging of the new 8-hour BESS to provide the greatest value for 3CE customers and to reduce the utilization rate of the unit, and thus reduce emissions that would have otherwise occurred absent the BESS. 3CE’s ranking is High
Workforce Development
The developer, MRP, represents that BESS construction work will also be bound under a project labor agreement (“PLA”) to which 3CE shall not be a party, and expect the number of construction jobs to be around thirty. After the commercial online date, the developer represents that the project will hire two additional operators to manage and maintain the BESS resources. 3CE’s ranking is High
Innovation
This project is a creative repurposing of existing site, utilizing its valuable and scarce transmission capacity to transition away from conventional power facilities towards energy storage systems.
The modeling indicates the new energy storage system will compete with the existing CCGT to use the interconnection capacity and is predicted to reduce emissions on average 12%. 3CE’s ranking is High.
Location
While not located within the 3CE jurisdictional footprint, the facilities are in San Joaquin County and grid-tied to the CAISO balancing authority. 3CE’s ranking is Medium.
Environmental Stewardship
Projects is in an area zoned for industrial surrounded by farmland and glass factory Land, biological and cultural surveys are complete and were included in technical reports to San Joaquin County and no significant impacts were identified. As both the existing CCGT and new BESS facility are on a developed parcel, no significant impacts are anticipated.
The project is anticipated to reduce CCGT output and thereby lower emissions in the local area. 3CE’s ranking is High.
Benefits Accrued to Underserved Communities
MRP’s submission notes it has a plan to engage with the local community regarding the construction of the new energy storage system. As the Project is integrating an energy storage system to reduce output from the existing CCGT unit, it will thereby lower emissions in the area.
MRP is planning for approximately 75% of their workers to be hired from the local area for the construction of energy storage system. 3CE’s ranking is Medium.
Project Selection Criteria: Tracy Hybrid
Impact on Existing Facility by adding a new construction Battery Energy Storage System BESS will compete with Natural Gas Plant to use the valuable and scare transmission capacity. The more the BESS operates, the lower the emissions Emission Reduction Potential: 12%
Actual results are contingent on the real time energy market prices charging and discharging the battery as well as the discharge of the CCGT facility.
Tracy BESS – Strategic Fire Mitigation
Moss Landing facility incidents demonstrate the importance of adhering to current designs standards and an industry move away from older lithium manganese cobalt (“NMC”) technology.
MRP sources batteries from CATL & SYL, the world’s largest Tier 1 BESS suppliers backed by a strong performance history.3 LFP technology is the new standard in utility-scale storage with a chemistry least likely to release flammable gases in the event of overheating.
Source #1: “How Liquid-Cooled Technology Unlocks the Potential of Energy Storage.” Wood Mackenzie, 23 Jan. 2023.
Source #2: Lithium-Ion Battery Fires and Fire Protection.” National Fire Sprinkler Association, 30 Oct. 2024.
Source #3: James Daggett, “2022 Battery Scorecard,” DNV GL (2022).
Source #4: “Research on the Thermal Runaway Behavior and Flammability Limits of Sodium-Ion and Lithium-Ion Batteries,” MDPI, 12 Jan. 2025, www.mdpi.com/2313-0105/11/1/24.
Point #2: Outdoor installations with significant separation for more convenient and safer firefighting access.2 Spacing between containers include 28 feet of separation, far exceeding NFPA 855 standards & 6.5 feet requirement, isolating a single container from the rest should an unlikely event occur. 2 Point #1: Liquid-cooled configurations have significantly improved heat transfer ability, keeping cells cool during charge/discharge. Includes safety mechanism automatically derating BESS, and in certain cases, completely shutting down the container. 1 Containers include internal fire-suppression aerosol coupled with fire water available to deluge the adjacent containers to avoid propagation.
Staff recommend approval of this PPA, in substantial form to attachments, with MRP Pacifica Marketing III LLC LLC as it will:
Provide 3CE a high value RA product,
Reduce 3CE’s RA non-compliance risks,
Obtain cost certainty in a volatile market,
Encourage good-paying jobs in support of battery construction, and Reduce emissions from existing natural gas facility.
+
Questions
Dennis Dyc-O’Neal
Chief of Power Supply
Central Coast Community Energy
Closed Session under Government Code 54950 relating to the following itema. Pursuant to Government Code section 54956.9(d)(4), the Board will confer with legal counsel regarding onematter Closed Session