Clean Energy Alliance Board of Directors
July 28, 2022

Regular Board Meeting
July 28, 2022
Item 3: CEO & Regulatory Report
7/28/22 2
Item 3: CEO Report
• SDG&E Rate Adjustment
• Approx 4% rate decrease effective 6/1/22
• CEA along with San Diego Community Power filed protest with CPUC
• Rates based on outdated assumptions
• Rates not reflective of current market conditions
• SDG&E now undercollecting revenue
• CPUC Agreed with the CCAs and set aside the Advice Letter • Rates still moved forward and went into affect
• CPUC may still take action related to the protest filed by CEA 7/28/22 3
Item 3: CEO Report
• CEA rates set in January 2022, and adjusted February 2022, met goal of 2% generation cost savings
• CEA’s rates reflective of current market conditions
• Provide sufficient revenue to cover operational costs • SDG&E’s rate decrease results in average bill for customers in 2020 PCIA vintage (Carlsbad & Del Mar) slightly higher than SDG&E • 2017 PCIA vintage customers (Solana Beach) average bill lower than SDG&E
7/28/22 4
Item 3: CEO Report
7/28/22 5
PCIA Vintage 2017
City of Solana Beach
Residential: TOU-DR1
SDG&E
31%
Renewable
CEA
50%
Renewable
Clean Impact
CEA
Clean Impact
Plus
75% Carbon
Free
CEA
Green
Impact
100%
Renewable
Generation $ 60.07 $ 44.13 $ 44.13 $ 44.13
Clean Impact Plus/Green Impact
Premium $ - $ - $ 0.41 $ 3.10
SDG&E PCIA+FFS - 2017 Vintage $ - $ 10.11 $ 10.11 $ 10.11 Generation Related Costs $ 60.07 $ 54.24 $ 54.65 $ 57.34 SDG&E Delivery $ 95.37 $ 95.37 $ 95.37 $ 95.37
Total Average Monthly Bill $ 155.44 $ 149.61 $ 150.02 $ 152.71 $ Savings to SDG&E - Total Bill $ (5.83) $ (5.42) $ (2.73) % Savings to SDG&E - Generation Costs -9.71% -9.99% -5.00% % Savings to SDG&E - Total Bill -3.75% -3.49% -1.76%
Average 413 kWh Usage
Average Bill Comparison PCIA Vintage 2017 - Rates Effective 6/1/2022 Item 3: CEO Report
7/28/22 6
Average Bill Comparison PCIA Vintage 2017 - Rates Effective 2/1/2022 PCIA Vintage 2017
Solana Beach
Residential: TOU-DR1
SDG&E
31%
Renewable
CEA
50%
Renewable
Clean Impact
CEA
Clean Impact
Plus
75% Carbon
Free
CEA
Green
Impact
100%
Renewable
Generation $ 62.54 $ 44.13 $ 44.13 $ 44.13
Clean Impact Plus/Green Impact
Premium $ - $ - $ 0.41 $ 3.10
SDG&E PCIA+FFS - 2020 Vintage $ - $ 10.11 $ 10.11 $ 10.11 Generation Related Costs $ 62.54 $ 54.24 $ 54.65 $ 57.34 SDG&E Delivery $ 92.46 $ 92.46 $ 92.46 $ 92.46
Total Average Monthly Bill $ 155.00 $ 146.70 $ 147.11 $ 149.79 $ Premium to SDG&E - Total Bill $ (8.30) $ (7.89) $ (5.20) % Premium to SDG&E - Generation Costs -13.27% -14.54% -9.52% % Premium to SDG&E - Total Bill -5.36% -5.09% -3.36%
Average 413 kWh Usage
Item 3: CEO Report
7/28/22 7
PCIA Vintage 2020
Carlsbad & Del Mar
Residential: TOU-DR1
SDG&E
31%
Renewable
CEA
50%
Renewable
Clean Impact
CEA
Clean Impact
Plus
75% Carbon
Free
CEA
Green
Impact
100%
Renewable
Generation $ 60.07 $ 44.13 $ 44.13 $ 44.13
Clean Impact Plus/Green Impact
Premium $ - $ - $ 0.41 $ 3.10
SDG&E PCIA+FFS - 2020 Vintage $ - $ 16.97 $ 16.97 $ 16.97 Generation Related Costs $ 60.07 $ 61.10 $ 61.51 $ 64.20 SDG&E Delivery $ 95.37 $ 95.37 $ 95.37 $ 95.37
Total Average Monthly Bill $ 155.44 $ 156.47 $ 156.88 $ 159.57 $ Premium to SDG&E - Total Bill $ 1.03 $ 1.44 $ 4.13
% Premium to SDG&E - Generation Costs 1.71% 2.36% 6.71% % Premium to SDG&E - Total Bill 0.66% 0.93% 2.65%
Average 413 kWh Usage
Average Bill Comparison PCIA Vintage 2020 - Rates Effective 6/1/2022 Item 3: CEO Report
7/28/22 8
PCIA Vintage 2020
Carlsbad & Del Mar
Residential: TOU-DR1
SDG&E
31%
Renewable
CEA
50%
Renewable
Clean Impact
CEA
Clean Impact
Plus
75% Carbon
Free
CEA
Green
Impact
100%
Renewable
Generation $ 62.54 $ 44.13 $ 44.13 $ 44.13
Clean Impact Plus/Green Impact
Premium $ - $ - $ 0.41 $ 3.10
SDG&E PCIA+FFS - 2020 Vintage $ - $ 16.97 $ 16.97 $ 16.97 Generation Related Costs $ 62.54 $ 61.10 $ 61.51 $ 64.20 SDG&E Delivery $ 92.46 $ 92.46 $ 92.46 $ 92.46
Total Average Monthly Bill $ 155.00 $ 153.56 $ 153.97 $ 156.66 $ Premium to SDG&E - Total Bill $ (1.44) $ (1.03) $ 1.66 % Premium to SDG&E - Generation Costs -2.30% -1.68% 2.69% % Premium to SDG&E - Total Bill -0.93% -0.66% 1.07%
Average 413 kWh Usage
Average Bill Comparison PCIA Vintage 2020 - Rates Effective 2/1/2022 Item 3: CEO Report
• Benefits of CEA
• Reduce greenhouse gas emissions
• Minimum 50% renewable energy
• Customers defaulted into 75% carbon free
• SDG&E - 31% renewable sources
• 100% renewable energy available – average $3 per month • SDG&E 100% renewable - average $100 monthly premium
• SDG&E seeking to eliminate program
• Meet Climate Action Plan Goals
• Local Control
• Board from member agency elected officials
• Community Advisory Committee
• Revenue stays local for benefit of communities
• This is a temporary situation and expected to turn around in a few months 7/28/22 9
Item 3: CEO Report
• May 31 - SDG&E Filed 2023 Energy Resource Recovery
Account (ERRA)
• Sets generation and PCIA rates for 2023
• Forecasts generation rates increasing
• Forecasts PCIA rates decreasing
• Will result in CEA’s costs being lower than SDG&E
• Annual Joint Rate Mailers
• Due to customers by September 1
• Will be based on rates effective 6/1/2022
7/28/22 10
Item 3: CEO Report
• CEA Expansion
• Escondido & San Marcos – April 2023 Launch
• Timeline:
• Implementation Plan Amendment Certified by CPUC – RECEIVED! • April 2022 – Include energy usage in CEA Year Ahead Resource Adequacy(RA) Filing with CPUC – First Procurement Related Action - FILED • May 2022 – Energy Hedge Procurement Begins
• July 2022 – RA requirements received from CPUC – Procurement Obligations • August 2022 – CAC Input into marketing and outreach strategy • October 2022 – Contracts for RA finalized; submittal to CPUC • October 2022 – Marketing & Outreach Begins
• February 2023 – Required Noticing begins
• April 2023 – Service Enrollments
7/28/22 11
Item 3: CEO Report
• CEA Expansion
• Oceanside, Vista, San Clemente – 2024 service
• Timeline:
• April 2022 – Results to cities
• May 2022
• May 3 - Vista Council Workshop
• May 26 – CEA Board Update
• June 2022 - Cities consider resolution to join CEA and Ordinance establishing CCA • June 8 & 22 – Oceanside City Council Approved Resolution to Join CEA and Ordinance • June 28 – Vista City Council Approved Resolution and Introduced and Adopted Ordinance • July 2022
• July 12 – San Clemente Community workshop
• July 19 – San Clemente City Council Voted to Table Consideration of Joining • July 28 - CEA approve cities joining; direct preparation of Implementation Plan Amendment • August 2022 – New Board Members Oath of Office
• October 2022 – Draft Implementation Plan Amendment to CEA Board for approval • December 2022 – File Implementation Plan Amendment with CPUC 7/28/22 12
Item 3: CEO Report
• Community Advisory Committee
• Applications being accepted through 7/31/22 for vacancies for City of Del Mar and City of Solana Beach
• Information and application on website
• www.TheCleanEnergyAlliance.org
7/28/22 13
Questions/Discussion
7/28/22 14
Item 4: Consider Resolution 2022-
004 Authorizing Oceanside &
Vista to Become Parties to JPA
and Members of CEA
7/28/22 15
Item 4: Authorize Oceanside & Vista to
Join CEA
• Recommendation:
• Adopt Resolution 2022—004 authorizing cities of Oceanside & Vista to become parties to the JPA and members of CEA;
• Schedule approval of the Amendment of the JPA for August 25, 2022;
• Direct staff to prepare and Implementation Plan Amendment reflecting service expansion into Oceanside & Vista and return to Board for approval October 27, 2022
7/28/22 16
Item 4: Authorize Oceanside & Vista to
Join CEA
• Background:
• Section 2.4 of JPA – Addition of members
• Adoption of Resolution authorizing membership – 2/3 vote of Board • May be denied if Board determines within 60 days after submittal of feasibility study that the addition would create an undue risk or financial hardship to CEA or to the achievement of the Climate Action Plan goals of the parties • Adoption of CCA Ordinance by proposed new member
• Approval and execution of the JPA Agreement and other necessary agreements by the proposed new member
• Payment of a membership fee, if any
• Satisfaction of any other conditions established by the Board 7/28/22 17
Item 4: Authorize Oceanside & Vista to
Join CEA
• Assessment Report prepared based on each agency’s
electric usage
• Results reflect sufficient revenue can be generated with rates increased from CEA’s current rates
• Savings may be achieved using the adjusted rates based on current assumptions
7/28/22 18
Item 4: Authorize Oceanside & Vista to
Join CEA
7/28/22 19
Oceanside Financial Assessment – Current Rates
FYE 2024 FYE 2025 FYE 2026
Revenue $9.86 $53.55 $53.82
Power Costs -$8.88 -$50.54 -$49.50
Other Costs -$0.65 -$1.60 -$1.61
Net Operating Margin $.33 $1.41 $2.71
5% Operating Reserve -$.49 -$2.68 -$2.69
Surplus/(Deficit) ($0.16) ($1.27) $0.02
Figures shown in millions
FYE 2025 is first full fiscal year
Item 4: Authorize Oceanside & Vista to
Join CEA
7/28/22 20
Oceanside Financial Assessment – 2.5% Increase to Rates FYE 2024 FYE 2025 FYE 2026
Revenue $10.11 $54.89 $55.17
Power Costs -$8.88 -$50.54 -$49.50
Other Costs -$0.65 -$1.60 -$1.61
Net Operating Margin $0.58 $2.75 $4.06
5% Operating Reserve -$0.51 -$2.74 -$2.76
Surplus/(Deficit) $0.07 $0.01 $1.30
Figures shown in millions
FYE 2025 is first full fiscal year
Item 4: Authorize Oceanside & Vista to
Join CEA
7/28/22 21
Oceanside Bill Comparison – based on 2.5% rate increase City of Oceanside
Residential: DR
SDG&E
31%
Renewable
CEA
50%
Renewable
Clean Impact
CEA
Clean Impact
Plus
75% Carbon
Free
CEA
Green
Impact
100%
Renewable
Generation $ 49.86 $ 36.70 $ 36.70 $ 36.70
Clean Impact Plus/Green Impact
Premium $ - $ - $ 0.32 $ 2.43
SDG&E PCIA+FFS - 2022 Vintage $ - $ 9.73 $ 9.73 $ 9.73
Generation Related Costs $ 49.86 $ 46.43 $ 46.75 $ 48.86 SDG&E Delivery $ 73.08 $ 73.08 $ 73.08 $ 73.08
Total Average Monthly Bill $ 122.94 $ 119.51 $ 119.83 $ 121.94 $ Savings to SDG&E $ (3.44) $ (3.11) $ (1.00)
% Savings to SDG&E -2.79% -2.53% -0.81%
Average 324 kWh Usage
Item 4: Authorize Oceanside & Vista to
Join CEA
7/28/22 22
Vista Financial Assessment – Current Rates
FYE 2024 FYE 2025 FYE 2026
Revenue $6.19 $32.96 $33.12
Power Costs -$5.62 -$31.49 -$30.85
Other Costs -$0.32 -$0.85 -$0.85
Net Operating Margin $0.25 $0.62 $1.42
5% Operating Reserve -$.31 -$1.65 -$1.66
Surplus/(Deficit) ($0.06) ($1.03) ($0.24)
Figures shown in millions
FYE 2025 is first full fiscal year
Item 4: Authorize Oceanside & Vista to
Join CEA
7/28/22 23
Vista Financial Assessment – 2.5% Rate Increase
FYE 2024 FYE 2025 FYE 2026
Revenue $6.34 $33.78 $33.95
Power Costs -$5.62 -$31.49 -$30.85
Other Costs -$0.32 -$0.85 -$0.85
Net Operating Margin $0.40 $1.44 $2.25
5% Operating Reserve -$.32 -$1.69 -$1.70
Surplus/(Deficit) $0.08 ($0.25) $0.55
Figures shown in millions
FYE 2025 is first full fiscal year
Item 4: Authorize Oceanside & Vista to
Join CEA
7/28/22 24
Vista Bill Comparison – based on 2.5% rate increase
City of Vista
Residential: DR
SDG&E
31%
Renewable
CEA
50%
Renewable
Clean Impact
CEA
Clean Impact
Plus
75% Carbon
Free
CEA
Green
Impact
100%
Renewable
Generation $ 52.63 $ 38.73 $ 38.73 $ 38.73
Clean Impact Plus/Green Impact
Premium $ - $ - $ 0.34 $ 2.57
SDG&E PCIA+FFS - 2022 Vintage $ - $ 10.26 $ 10.26 $ 10.26 Generation Related Costs $ 52.63 $ 48.99 $ 49.34 $ 51.56 SDG&E Delivery $ 77.14 $ 77.14 $ 77.14 $ 77.14
Total Average Monthly Bill $ 129.77 $ 126.13 $ 126.48 $ 128.70 $ Savings to SDG&E $ (3.64) $ (3.29) $ (1.07)
% Savings to SDG&E -2.80% -2.54% -0.83%
Average 342 kWh Usage
Item 4: Authorize Oceanside & Vista to
Join CEA
7/28/22 25
Combined Oceanside & Vista Financial Assessment – 2.5% Rate Increase FYE 2024 FYE 2025 FYE 2026
Revenue $16.46 $88.67 $89.12
Power Costs -$14.50 -$82.03 -$80.35
Other Costs -$0.97 -$2.45 -$2.46
Net Operating Margin $0.99 $4.19 $6.31
5% Operating Reserve -$0.82 -$4.43 -$4.45
Surplus/(Deficit) $0.17 ($0.24) $1.86
Figures shown in millions
FYE 2025 is first full fiscal year
Item 4: Authorize Oceanside & Vista to
Join CEA
• Actions Taken by Oceanside & Vista
• Adoption of Ordinance establishing CCA
• Oceanside – 6/22/22; effective 7/22/22
• Vista – 6/28/22; effective 7/28/22
• Approval & Execution of JPA
• Oceanside – Approval 6/8/22;
• Vista – Approval 6/28/22
• Execution by 8/25/22
• Oceanside & Vista to split costs of Implementation Plan Amendment per CEA Policy
• Reimbursable within 3 years of CEA service commencement 7/28/22 26
Item 4: Authorize Oceanside & Vista to
Join CEA
• JPA Requirements for Addition of Oceanside & Vista have been met.
• Next Steps
• Members have been provided written notice of the Proposed Amendment to JPA
• Proposed Amendment to come before Board for Consideration 8/25/22
• Implementation Plan Amendment to be prepared and come before Board for consideration 10/27/22 & Filed with CPUC by 12/31/22 for 2024 service commencement
7/28/22 27
Questions/Discussion
7/28/22 28