Regular Board Meeting
January 26, 2023
Item 6: Consider Adoption of CEA
Rates Effective February 1, 2023
01/26/23 2
Item 6: Consider Adoption of CEA
Rates Effective 2/1/2023
• Recommendation:
• Conduct the Public Hearing: Open the Public Hearing, Receive Public Testimony and Close the Public Hearing.
• Adopt Resolution 2023-001, amending Resolution 2021-017, setting rates for Clean Energy Alliance effective February 1, 2023. 01/26/23 3
Item 6: Consider Adoption of CEA
Rates Effective 2/1/2023
• Setting rates is a critical function for CEA
• Appropriate rates are crucial to CEA’s operational and financial success
• Goals/Priorities in Rate setting process
• Generate revenue sufficient to cover costs
• Fund the minimum 5% Financial Reserve contribution
• Meet credit facility covenants
• Maintain competitiveness with SDG&E
• Provide customer rate stability
01/26/23 4
Item 6: Consider Adoption of CEA
Rates Effective 2/1/2023
Rate Development Process
SDGE Rates – Exit Fee* & Franchise Fees = CEA Starting Rate Discount by 2% - CEA’s targe minimum = CEA Initial Rate CEA’s Initial Rate used to calculate resulting revenue generation to determine if sufficient to cover costs.
If rate is sufficient Initial Rate is Proposed Rate.
* Highest Exit Fee of CEA’s vintages is used
01/26/23 5
Item 6: Consider Adoption of CEA
Rates Effective 2/1/2023
Projected Revenue & Expenses – Budget and Updated
01/26/23 6
65 70
75 80
85 90
95 Adopted Budget Updated Projections
Millions $
Revenue Expenses
• Rates when Budget Adopted sufficient
to meet projected expenditures
• Energy Market Conditions have driven
up expenditure projections
• Current Rates no longer sufficient to
meet expenses in current fiscal year
Item 6: Consider Adoption of CEA
Rates Effective 2/1/2023
01/26/23 7
• Market Conditions Impacting Costs
• Western US Natural Gas price spikes driving up California power prices
Item 6: Consider Adoption of CEA
Rates Effective 2/1/2023
Projected Revenue & Expenses – With Rate Adjustment
01/26/23 8
0 20
40 60
80 100
120
Adopted Budget Updated Projections
Millions $
Revenue Expenses
• Proposed Rates generate revenue
sufficient to cover costs
• Provide minimum 2% generation savings
compared to SDG&E
• Funds to 5% Financial Reserve
• Meet credit covenants
01/26/23 9
Item 6: Consider Adoption of CEA
Rates Effective 2/1/2023
-0.05
0.00 0.05
0.10 0.15
0.20 0.25
SDGE 6/2/2022 CEA
2017 Vintage
Feb 2022
CEA
2020 Vintage
Feb 2022
SDGE 1/1/2023 CEA
2017 Vintage
Proposed
CEA
2020 Vintage
Proposed
CEA
2022 Vintage
Proposed
cents per kWh
CEA Generation Rate SDG&E Generation & Exit Fees
CEA
Generation
Rate
SDG&E
Exit
Fees
CEA
Generation
Rate
• CEA/SDGE Comparison of rates for
average residential customer
• Left 3 columns rates effective
6/1/2022
• Right 4 columns SDG&E 1/1/23 rates
and CEA’s proposed Rates
• CEA’s Proposed rates 25% below
SDG&E average generation rate
• Customer savings based on Exit Fee
Vintage
Item 6: Consider Adoption of CEA
Rates Effective 2/1/2023
01/26/23 10
Bill Comparison – Average Residential Usage Rate Schedule TOU-DR1 2022 Vintage – Escondido & San Marcos – Enrolling April 2023 2020 Vintage – Carlsbad & Del Mar
2017 Vintage – Solana Beach
SDG&E
Residential: TOU-DR-1 2022 Vintage 2020 Vintage 2017 Vintage Generation $ 80.85 $ 60.00 $ 60.00 $ 60.00
SDG&E PCIA+FFS $ 19.23 $ 0.41 $ 2.52
Total Generation Costs Clean Impact $ 80.85 $ 79.23 $ 60.41 $ 62.53 Clean Impact Plus Premium $ 0.41 $ 0.41 $ 0.41
SDG&E Delivery $ 149.29 $ 149.29 $ 149.29 $ 149.29
Total Average Monthly Bill $ 230.14 $ 228.93 $ 210.12 $ 212.23 Monthly Bill Difference CEA vs SDGE $ (1.21) $ (20.02) $ (17.91) % Total Bill Savings CEA vs SDGE -0.52% -8.70% -7.78%
% Generation Savings CEA vs SDGE -2.00% -25.27% -22.66% CEA Proposed Rates
• Customer Notification of Rate Adjustment
• Public Hearing Notice Published in Coast News 1/13 & 1/20 • Press Release issued 1/16
• Pop-Up Notification on CEA Website
• Social Media Posts
01/26/23 11
Item 6: Consider Adoption of CEA
Rates Effective 2/1/2023
Questions/Discussion
01/26/23 12
Item 7: Consider Approval of CEA
Working with San Diego
Community Power in Exploring
Establishment of a Regional
Energy Network
01/26/23 13
Item 7: Consider Working with SDCP in
Evaluation Regional Energy Network
• Recommendation:
• Approve CEA working with San Diego Community Power in exploring establishment of a Regional Energy Network and direct staff to return with results and next steps.
01/26/23 14
• Key Goal of CEA Programs to support achievement of
Climate Action Plan goals of Member Agencies
• No CEA funds currently available for programs
• Evaluating options for alternative program funding
• Regional Energy Network is one possible alternative to bring program funds to CEA
01/26/23 15
Item 7: Consider Working with SDCP in
Evaluation Regional Energy Network
• CPUC Energy Efficiency Funding Access Pathways
01/26/23 16
Elect-to-Administer Apply-to-Administer Regional Energy Network CEA Independent Effort CEA Independent Effort Joint Regional Effort Least Administrative
Burden
Most Administrative
Burden
Significant Administrative
Burden provided by REN
9-12 month timeline 12-24 month timeline 12-24 month timeline ~ 9 CCAs actively
administering or pursuing
1 CCA known to actively
administering
5 RENS operational in CA –
none in San Diego
Restrictive cost-effectiveness thresholdsRestrictive cost-effectiveness thresholdsNot subject to cost-effectiveness thresholds Declining Available Funds Significant funding
possible
Significant funding
possible
Item 7: Consider Working with SDCP in
Evaluation Regional Energy Network
• SDCP reached out to CEA with suggestion to work together in evaluating establishing a REN
• Accessing funds would benefit both CEA and SDCP
customers
• SDCP has authorized funding to hire consultant to assist in evaluation and application processes
01/26/23 17
Item 7: Consider Working with SDCP in
Evaluation Regional Energy Network
• Staff recommends Board approval to work with SDCP in
evaluating establishing a REN
• Staff to return with results and next steps
01/26/23 18
Item 7: Consider Working with SDCP in
Evaluation Regional Energy Network
Questions/Discussion
01/26/23 19
Item 9: Receive Report and
Provide Direction on Physical
Meeting Location
01/26/23 20
Item 9: Receive Report and Provide
Direction on Physical Meeting Location
• Recommendation:
• Receive report and provide direction regarding physical location of Clean Energy Alliance Board and Community Advisory Committee Meetings.
01/26/23 21
Item 9: Receive Report and Provide
Direction on Physical Meeting Location
• Background:
• Section 4.8 of JPA
• Board shall establish date, hour, place of regular Board meetings annually by resolution • Section 1 of Bylaws
• Resolution shall set meeting schedule on fiscal year basis • May 26, 2022 – Resolution 2022-002 established meeting schedule for July 2022 – June 2023
• Identified San Marcos as physical location
• At that time Oceanside and Vista were not members
• Board requested staff evaluate feasibility of Oceanside as physical meeting location
01/26/23 22
Item 9: Receive Report and Provide
Direction on Physical Meeting Location
• CEA staff worked with Oceanside staff to evaluate feasibility • Oceanside City Council Chambers are available for current Board and CAC meeting dates
• Oceanside Council Chambers Equipment can accommodate live-stream and recording via Zoom • Unable to accommodate live-stream via YouTube
• Live-Stream via Zoom is sufficient for public viewing • Recordings would be posted to CEA’s YouTube channel for public access 01/26/23 23
Item 9: Receive Report and Provide
Direction on Physical Meeting Location
01/26/23 24
• Steps to Amend Physical Meeting Location
• Resolution with new Meeting Location to Board for Consideration at February 23, 2023 meeting
• New meeting schedule effective beginning March 2023
• Board and Community Advisory Committee meetings would be affected Questions/Discussion
01/26/23 25
Item 10: Consider CAC 2023
Workplan and Meeting Schedule
and Provide Direction re: CAC
Chair
01/26/23 26
Item 10: Consider CAC 2023 Workplan and
Meeting Schedule and Provide Direction
re: CAC Chair
• Recommendation:
• Approve CAC 2023 Workplan and Meeting Schedule and provide direction re: CAC Chair
01/26/23 27
Item 10: Consider CAC 2023 Workplan and
Meeting Schedule and Provide Direction
re: CAC Chair
• Background:
• Community Advisory Committee Policy establishes the Board sets the CAC annual workplan and meeting schedule.
• For 2022 the following workplan and schedule were approved:
01/26/23 28
MEETING DATE WORK PLAN/TOPICS
February 3, 2022 Review CEA Website & Provide input for Update April 7, 2022 Receive report from CEA Board Budget Workshop June 2, 2022 Review CEA Draft FY 2022/23 Budget
August 4, 2022 Marketing and Outreach Strategy for Escondido & San Marcos Launch October 6, 2022 Education, Outreach and Training Plan re: GHG Emissions Reductions Strategies
December 1, 2022 2022 Achievements and 2023 Workplan Suggestions for Board Consideration
Item 10: Consider CAC 2023 Workplan and
Meeting Schedule and Provide Direction
re: CAC Chair
• During the past year the CAC accomplished the workplan as established by the Board, as well as creating subcommittees to focus on various areas of interest, including:
• Electric Vehicle
• Local Programs
• Outreach to Underserved Communities
• The subcommittees are just getting started developing their purpose and and used the information gathered from their meetings in the proposed workplan for Board consideration 01/26/23 29
Item 10: Consider CAC 2023 Workplan and
Meeting Schedule and Provide Direction
re: CAC Chair
• In addition to discussing a proposed workplan, the CAC also discussed their meeting schedule and confirmed the current schedule of meeting the Thursday of even months has
worked well.
• The subcommittee requests Board consideration of the
following workplan for 2023
01/26/23 30
Item 10: Consider CAC 2023 Workplan and
Meeting Schedule and Provide Direction
re: CAC Chair
01/26/23 31
MEETING DATE WORK PLAN/TOPICS
February 2, 2023 Microgrid Program Presentation
Review Escondido & San Marcos Marketing & Education for CAC Assistance Assignment; Green Impact Champions Program Overview and Marketing Input April 6, 2023 Receive report from CEA Board Budget Workshop & Provide Input for Board Consideration Regional Energy Networks Presentation;
Presentation Regarding Inflation Reduction Act and Other Grant Opportunities for CEA Programs
June 1, 2023 Review CEA Draft FY 2022/23 Budget
Review Website
August 3, 2023 Escondido/San Marcos Enrollment Recap
Marketing and Outreach Strategy for Escondido & San Marcos Launch October 5, 2023 Review Subcommittee Work for Preparation to Present to Board Consider current structure of CAC in light of CEA growth December 7, 2023 2023 Achievements and 2024 Workplan Suggestions for Board Consideration in January Item 10: Consider CAC 2023 Workplan and
Meeting Schedule and Provide Direction
re: CAC Chair
• CAC Chair Discussion:
• CAC Policy states an Alternate Board Member shall serve as CAC Chair
• No term limits have been established for the CAC Chair • Dwight Worden, Alternate Board Member Del Mar, has served as CAC Chair since December 2020
• The Board requested the topic of CAC Chair be brought to the Board for discussion.
01/26/23 32
Questions/Discussion
01/26/23 33