Board of Directors Meeting
September 26, 2024
Item 4: CEO Report
2 Completed Community Events
3 DATE DESCRIPTION
August 29, 2024 VMW HOA Meeting
September 6, 2024 Carlsbad Regional Community Summit
September 6, 2024 Heroes of Oceanside and Camp Pendleton September 6, 2024 Calcities CiticPAC Event
September 9, 2024 RE + Conference
September 11, 2024 Solana Beach City Council Presentation September 18, 2024 Solana Beach Climate Action Commission Presentation September 25, 2024 Vista Environmental Commission Presentation Upcoming Community Events
4 DATE DESCRIPTION
September 29, 2024 City of Vista Cyclovia
October 9, 2024 CPUC Small and Diverse Business Expo
October 9, 2024 Del Mar Climate Coalition
October 8, 2024 Carlsbad City Council Presentation
October 10, 2024 CPUC Supplier Diversity En Banc
October 18, 2024 NEXUS: San Diego Climate Summit
October 26, 2024 Kiwani's Oceanside Pacific Spaghetti Dinner October 24, 2024 AWWEE Conference
October 30, 2024 CAISO Stakeholder Symposium
Oceanside & Vista Enrollment
Stats
5 City # of Eligible
Customers
# of Opt-Downs to
50%
Renewable
# of Opt-Ups to
100%
Renewable
# of Opt-Outs
Participation
Rate
Oceanside 67,004 167 63 3,212 95.2%
Vista 36,029 71 262 1,292 96.4%
TOTAL 103,033 238 325 4,504 95.6%
CEA Enrollment Stats
6 Member City Clean Impact – 50%
Renewable
Clean Impact Plus -
75% Carbon Free
Green Impact – 100%
Renewable
Carlsbad 159 49,452 215
Del Mar 4 2,775 67
Escondido 138 53,228 63
Oceanside 167 66,774 63
San Marcos 118 34,671 63
Solana Beach 15 6,896 157
Vista 71 35,696 262
TOTAL ACCOUNTS 672 249,493 890
Self-Generation Incentive Program
• California's Self-Generation Incentive Program (SGIP) provides financial incentives to residential and commercial customers who install solar and energy storage systems. • AB 209 expanded access to incentives for low-income
customers
• SGIP incentive covers approximately 85% of the average energy storage system.
• Staff is working to expand the Solar Plus program to
incorporated SGIP incentives for low-income customers.
7 CivicSpark Fellowship
• CEA is hosting a CivicSpark Fellow for 12-months to support program planning, customer service, and procurement.
• CivicSpark is an AmeriCorp program that places young
professionals in local government or non profit organizations to address climate change, sustainability and community resilience.
• Welcome Olivia!
8 Procurement Updates
9 • Released an RFQ in June seeking respondents interested in developing future 1-20 MW solar and/or battery projects near CEA service territory.
• To date, CEA has received 5 responsive submissions.
• Developed a process to intake product and project offers year-round via our new Open Offers Form.
• Currently prioritizing projects offering local Resource Adequacy, local projects, alternative technologies, and near-term commercial operation dates
Solar Plus Update
10 • 21 Enrolled Contracts (as of 9/18/24)
• Solana Beach - 1
• Carlsbad – 2
• Escondido – 4
• San Marcos – 5
• Oceanside – 5
• Vista – 4
FY 2024/25 Budget Update
11 • Revenues through August are 112% of projected budget at $88.2M actual to $78.7M budgeted
• Expenditures through August are 99% of projected at $55.7M actual to $56M budgeted
• Change in Net Position through August is 144% of Budget at $31.9M actual to $22.2M budgeted
• Note that these are preliminary, unaudited estimates and are subject to change
Questions/Discussion
12 Item 5: Regulatory Update
13 Clean Energy Alliance:
Regulatory Update
Jake Schlesinger – Keyes & Fox LLP
September 26, 2024
Overview
● Income graduated fixed charges (IGFCs)
● PCIA bill presentment in GRC Phase 2
● SDREN approval
● “Proportional Allocation” of collections on past-due bills IGFCs
● Aug. 13, 2024: SDG&E filed AL 4492-E to implement IGFCs pursuant to D.24-05-028
● Cal Advocates, SEIA, TURN and NRDC, CforAT, and CEJA filed protests ● Sept. 12, 2024: CPUC suspended the AL for 120 days until Jan 10, 2025 IGFCs
17 PCIA Bill Presentment
● Live issue since CalCCA raised it in 2016
● CPUC approved minor revisions to bills in 2021 but directed, “[f]urther bill changes. . .would require changes to the utilities’ time-differentiated rate structures. Such changes are out of scope of this resolution and should be addressed within each utility’s GRC phase 2 proceeding.”(emphasis added) ● PG&E made these changes in its 2021 GRC Phase 2
● SDG&E opposes the same changes in its current GRC Phase 2 SDREN
● REN = authorized by the CPUC to serve as program administrators and deliver energy programs to local communities
● SDCP and the County of San Diego govern SDREN through an oversight committee
● SDCP acts as the lead portfolio administrator
● CPUC approved SDREN on Aug. 7, 2024, with a budget of $124M+ through 2027
Proportional Allocation
● D.21-11-014 Re: Bill Debt from COVID-19 Pandemic: CPUC required IOUs to allocate payments on past-due electric utility bills proportionally between the IOUs and CCAs
● D.24-09-005 on Sept. 18, 2024: “The Commission finds the reasoning set out in D.21-11 014 still holds and therefore requires the electric IOUs to continue to use the proportional allocation method unless and until the Commission determines otherwise“
“waterfall method” “proportional allocation method”
Cal Advocates, PG&E, and SDG&E CalCCA, SCE, and UCAN
QUESTIONS?
Jake Schlesinger
[email protected]
(720) 639-2190
21 Item 6: Community Advisory
Committee Policy Amendments
22 Item 6: CAC Policy Amendments
23 • Recommendation: That the CEA Board adopt Resolution No. 2024-018 approving amendments to the CAC Policy.
Background
• Currently, CEA Policy No. 20, Chair-Vice Chair Term Limit Policy states that the CEA Board will appoint a Board
Alternate to serve as the CAC Chair, while the CAC Policy states the CAC appoints their Chair
• CAC members currently serve three-year terms with a two-term limit • Current members have expressed an interest in continuing to serve though they will be reaching their term limit at the end of this calendar year
24 Proposed Amendments
25 • CAC Chair will be a Board Alternate appointed by
the Board annually
• Terms of CAC Members will change from three-year
terms to two-year terms to closer align with Board
Member terms
• Removing the term limit for CAC Members
• CAC Members who wish to continue serving at the end of their term may apply for reappointment
Questions/Discussion
26 Item 7: Direction on Program
Funds
27 Item 7: Direction of Program Funds
28 • Recommendation:
• That the Board provide input and direction regarding the distribution and use of FY 2024/25 budgeted Program Funds.
Background
• CEA Board approved $600,000 for programs to CEA customers as part of the adopted Fiscal Year 2024/25 Budget.
• Section 7.6 of the CEA Joint Powers Authority (JPA) Agreement provides the following direction regarding expenditure of discretionary revenues:
• Discretionary revenue may be used to:
o Provide programs and develop projects of CEA;
o Allow Member Agencies to direct funds into qualified CEA programs and projects or other customer benefits.
• The Board shall endeavor to achieve a balanced distribution of program and project benefits substantially commensurate with each Member Agency’s energy load;
• The Board shall conduct periodic audits no less than every two years to verify the balanced distribution of program and project benefit and take corrective action necessary to achieve or continue to maintain a balanced distribution. 29 Background
30 MEMBER AGENCY 12-MONTHS USAGE
(MWh)
Percentage (%) of
Load
Allocation of
Funds
City of Carlsbad 587,116 28% $168,000
City of Del Mar 25,178 1% $6,000
City of Escondido 443,426 21% $126,000
City of Oceanside 467,097 22% $132,000
City of San Marcos 260,126 12% $72,000
City of Solana Beach 57,264 3% $18,000
City of Vista 275,071 13% $78,000
Total Territory 2,115,278 100% $600,000
Background
31 MEMBER AGENCY # OF CARE CUSTOMERS $ PER CUSTOMER
City of Carlsbad 5,002 $33.58
City of Del Mar 95 $63.15
City of Escondido 17,527 $7.18
City of Oceanside 15,562 $8.48
City of San Marcos 7,800 $9.23
City of Solana Beach 409 $44.01
City of Vista 10,221 $7.63
Background
32 • CARE customers in CEA’s territory are not distributed among its Member Agencies in the same proportion as load which creates a significant discrepancy in potential amount CARE customers would receive in each city. • If the objective is to provide a benefit to customers most in need of a possible PCIA rebate, allocations would not equitably distribute such a benefit.
• It is also important to note:
• This type of benefit would be a one-time rebate and would not provide an ongoing benefit/cost savings to CARE customers.
• CEA’s Member Agencies do not have to utilize their allocated program funds in the same program, which provides flexibility to evaluate other possible uses of the funds that would provide benefit to their customers.
Background
33 • Another Option:
• Utilize Program Funds to help fund the solar and battery storage equipment cost provided through CEA’s Solar Plus program. • Opportunity for ongoing savings for as long as the system is in use. • Staff is currently working on a proposed expansion of our Solar Plus program which would benefit CARE/FERA utilizing Self Generation Incentive Program (SGIP) grant funds from the California Public Utility Commission (CPUC)
• Board Members could then consider utilizing Program Funds to further reduce customer electric bills through this new program. • The SGIP Solar Plus program will be coming to the Board for consideration at its October Board meeting.
Questions/Discussion
34