Clean Energy Alliance: Regulatory Update
Tim Lindl – Keyes & Fox LLP
August 29, 2024
Overview
● Refresher on Power Charge Indifference Adjustment (PCIA) Ratesetting
● SDG&E 2025 Energy Resource Recovery Account (ERRA)
Forecast Case (A.24-05-010)
● Quick Hits: Bill Presentment Issues
2 3
Setting PCIA Rates
YEAR-END
PABA BALANCE
FORECASTED
INDIFFERENCE
AMOUNT
PCIA REVENUE
REQUIREMENT
4 Setting PCIA Rates
TOTAL COST
OF UTILITY
PORTFOLIO
MARKET
VALUE OF
UTILIY
PORTFOLIO
INDIFFERENCE
AMOUNT
(PCIA)
RPS ADDER
($/GWH) *
GWh
MARKET
VALUE OF
UTILITY
PORTFOLIO
ENERGY
INDEX
($/GWH) *
GWh
RA ADDER
($/MW) *
MW
Developments in the ERRA
● Out of Scope: Proposal to Cap RA Adder
● Testimony on how to value:
○ Common costs
○ Renewable energy SDG&E uses to meet RPS requirements
○ SDG&E’s RA capacity
5 Quick Hit
SDG&E Phase II General Rate Case Opening Brief
● How the PCIA is presented on customers’ bills
● Seeking a fair playing field
6 QUESTIONS?
Tim Lindl
[email protected]
(510) 314-8385
7 Duration of CEA’s Power Charge
Indifference Adjustment Obligations
Tim Lindl – Keyes & Fox LLP
Carlo Bencomo-Jasso – NewGen Strategies & Solutions, LLC August 29, 2024
PCIA Vintaging
Each municipality’s PCIA obligation is based on the following:
● Customers are assigned a vintage based on when those
customers departed SDG&E’s service for CEA service.
● Generation assets are assigned to each vintage.
● Customers are responsible for assets assigned to their vintage and all assets in prior vintages
Example PCIA Revenue Requirement by Vintage
$000s
UOG Legacy 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total Portfolio Costs 12,390 509,726 100,433 193,555 44,490 1,908 1,381 1,570 - 7,142 191 25,919 - 166,190 - - 1,064,894 Portfolio Market Value 1,583 380,516 68,020 167,748 46,644 3,702 887 3,718 - 18,072 1,278 42,131 - 78,107 - - Total Forecasted Indifference 13,972 890,242 168,453 361,303 91,134 5,610 2,267 5,289 - 25,214 1,468 68,050 - 244,297 - - 1,064,894 PABA True Up Balance 10,537 24,292 75,752 72,699 12,357 37,489 2,387 (39,067) 38,525 (51,247) 10,006 2,470 (44,873) 70,066 46,174 (122,141) 194,228 ERRA True Up Balance - - - - - - - - - - - - - - - - 48,800 48,800 Total Revenue Requirement
10 PCIA Vintaging
Generation assets “roll out” of the PCIA at:
● The end of the contract term for third-party-owned
generation
● The original “end of life date” for a utility-owned
generator
11 CEA’s PCIA Vintages
Solana Beach 2017
Carlsbad 2020
Del Mar 2020
Escondido 2022
San Marcos 2022
Oceanside 2023
Vista 2023
12 PCIA Obligations By Municipality (MW)
0 1,000
2,000
3,000
4,000
5,000
6,000
MW
Carlsbad Del Mar Escondido Oceanside
San Marcos Solana Beach Vista
13 PCIA Obligations By Municipality (Resources)
0 10
20 30
40 50
60 70
80 Number of Resources
Carlsbad Del Mar Escondido Oceanside
San Marcos Solana Beach Vista
14 Still Work to Be Done
Policing Vintaging:
● Whether there should be “Forever PCIA” assets
● Contract amendments and extensions
● Commission cases establishing vintages for specific
procurement orders
QUESTIONS?
Tim Lindl
[email protected]
(510) 314-8385
Carlo Bencomo-Jasso
[email protected]
(909) 908-2970
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