Regular Board Meeting
July 27, 2023
Item 5: CEO Administrative and
Regulatory Update
7/27/23 2
Item 5: Administrative and Regulatory
Update
• Recommendation:
• Receive .and file operational and administrative report from CEO. • Receive Regulatory Affairs Report from Regulatory Counsel. 7/27/23 3
Item 5: Administrative and Regulatory
Update
7/27/23 4
STAT ESCONDIDO SAN MARCOS BOTH CITIES
Total Eligible Customers 58,099 38,162 96,261
Opt-Outs 1,824 1,248 3,072
Opt-Out Percentage 3.14% 3.27% 3.19%
-1,000
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Opt-Out Stats
Monthly Opt-Out Stats Cumulative Opt-outs
Item 5: Administrative and Regulatory
Update
• AB 1373 – Energy
• Introduced 2/17/23 - Garcia
• Would impact CEA’s procurement autonomy and costs
• CalCCA launched an effort to have the bill amended
• Good progress made
• Amended in assembly 4/13/23 & 5/22/23
• CalCCA now has a neutral position
• CEA, San Diego Community Power and Orange County Power Authority continue to have concerns with bill as amended 7/27/23 5
Item 5: Administrative and Regulatory
Update
• Bill was not heard by policy committee prior to recess • Risk that bill could still be heard
• Contains urgency clause
• Planned and Activities to date (Board Chair & CEO):
• Meetings with elected officials
• Joint meetings between CCAs
7/27/23 6
Questions/Discussion
7/27/23 7
Item 6: Approval of Agreement
with Calpine Energy Solutions
and Recurve for Summer Peak
Load Reduction Pilot Program
7/27/23 8
Item 6: Summer Peak Load Reduction
Pilot Program
• Recommendation:
• Approve agreement with Calpine Energy Solutions and Recurve Analytics, Inc. for Summer Peak Load Reduction Pilot Program for an amount not to exceed $150,000 and authorize the Chief Executive Officer to execute all documents subject to General Counsel Approval
7/27/23 9
Item 6: Summer Peak Load Reduction
Pilot Program
• Background:
• Calpine and Recurve have developed and operates a peak load reduction program in other CCAs using their FLEXmarket Platform • The Platform identifies non-residential customers through usage analysis that would be good candidates for energy efficiency projects that result in a reduction in usage during peak times • The CCA does not incur any costs or pay for any projects unless there is proven reduction in usage through the projects • The FLEXmarket program has proved successful in the CCAs where they are in place
7/27/23 10
Customers
Identified
Energy Efficiency
Measures
Implemented
Usage Analyzed Load Reductions
Verified
Payments to
Calpine/Recurve
7/27/23 11
Item 6: Summer Peak Load Reduction
Pilot Program
Calpine Contributing $50,000
CEA Budget $150,000
Total Pilot $200,000
Targeting one non-residential customer in
each operational city
Goal: projects complete by end
of August
Item 6: Summer Peak Load Reduction
Pilot Program
• Benefit to CEA
• Peak load reductions
• Reduces exposure to energy costs during heat events
• Reduces Resource Adequacy requirements in future years • On-going cost savings
• Benefit to Customer
• Energy efficiency measures at no cost to customer
• Bill savings
• Generation & Delivery savings
7/27/23 12
Questions/Discussion
7/27/23 13
Item 7: Approval of MOU with
Poseidon Resources, LP and San
Diego County Water Authority for
service to Carlsbad Desalination
Plant
7/27/23 14
Item 7: MOU with Poseidon Resources
and SDCWA
• Recommendation:
• Approve MOU with Poseidon Resources, LP and San Diego County Water Authority regarding enrollment of Carlsbad Desalination Plant and authorize the Chief Executive Officer to execute all documents subject to General Counsel Approval
7/27/23 15
• Background:
• Carlsbad Desalination Plant owned by Poseidon Resources (Channelside)
• Located in City of Carlsbad
• San Diego County Water Authority has decision-making authority related to energy provided through Water Purchase Agreement • Desalination Plant is largest in US, delivering nearly 50 million gallons of desalinated water, 1/3 of water generated in County 7/27/23 16
Item 7: MOU with Poseidon Resources
and SDCWA
• Channelside opted out of CEA service during 2021 mass enrollment
• CEA and SDCWA have kept in contact over past 2 years
regarding CEA serving load
• Channelside load represented 40% of CEA’s total load of the original 3 cities
• Unique considerations related to serving load of this size • Risk of opt-out has significant financial implications to CEA • With CEA’s expansion the load represents ~10% of CEA total load 7/27/23 17
Item 7: MOU with Poseidon Resources
and SDCWA
• CEA & SDCWA have identified a unique opportunity to serve the Plant while mitigating risks to CEA
• New CEA Program Offering - Wholesale Market Access Tariff • CEA manages energy portfolio specific to Plant’s load • Includes all products including Resource Adequacy and Renewable Energy requirements
• SDCWA participates in procurement activities
• Wholesale cost of energy passed to the Channelside account • Administrative, overhead and fee charged on top of wholesale energy • Incidental costs of managing portfolio also passed to Channelside 7/27/23 18
Item 7: MOU with Poseidon Resources
and SDCWA
• Positive Enrollment Agreement
• Establishes a minimum opt-out period (at least 3-years) • Sets enrollment date no earlier than January 2025
• Accounts would be in San Diego Gas & Electric 2024 PCIA Vintage based on enrollment between January – June 2025
• Rancho Peñasquitos Hydroelectric Generation Facility
• Good faith negotiations between CEA and SDCWA PPA of energy produced
7/27/23 19
Item 7: MOU with Poseidon Resources
and SDCWA
• Benefits to CEA
• Meeting greenhouse gas emissions reductions by serving large load
• Predictable revenue stream
• Benefits to SDCWA/Channelside
• Electric cost savings
• Control over energy portfolio
• In alignment with future goals for Channelside
7/27/23 20
Item 7: MOU with Poseidon Resources
and SDCWA
• Key Next Steps
• With Board Approval, CEA/SDCWA/Channelside execute MOU • CEA develops Wholesale Market Access Tariff and Positive Enrollment Agreement for Board approval no later than October 26, 2023
• Rancho Peñasquitos PPA negotiations
• November 2023 Agreements Executed
• Throughout 2024
• Channelside load included in April 2024 Year Ahead RA filing • Energy procurement for load
7/27/23 21
Item 7: MOU with Poseidon Resources
and SDCWA
Questions/Discussion
7/27/23 22