Board of Directors Meeting
February 27, 2025
Item 3: CEO Report
2 Oceanside & Vista Enrollment
Stats
3 City Eligible
Customers
Opt-Downs
to 50%
Renewable
Opt-Ups to
100%
Renewable
Opt-Outs Participation
Rate
Oceanside 73,939 216 94 4,217 94.3%
Vista 39,517 88 316 1,722 95.6%
TOTAL 113,456 304 410 5,939 94.8%
CEA Enrollment Stats
4 Member City Clean Impact – 50%
Renewable
Clean Impact Plus -
75% Carbon Free
Green Impact – 100%
Renewable
Carlsbad 158 49,443 225
Del Mar 4 2,774 72
Escondido 143 53,085 62
Oceanside 189 69,121 89
San Marcos 114 34,518 63
Solana Beach 15 7,091 158
Vista 82 37,241 311
TOTAL ACCOUNTS 705 248,734 980
Equitable Building Decarbonization
Direct Install Program
• Purpose: Accelerate large scale residential building decarbonization. • Funding:
• $329M for the 6 Southern California Counties (2024-2029) • L.A. County (Internal Services Department) is the fiscal agent • $1.3M Is budgeted for San Diego County Partners including CEA • Partners budget does not include implementors/project budgets • CEA will assist with:
• Program Marketing
• Program Design & Support
• Community Education & Training
• Participant Recruitment
5 Commercial & Industrial (C&I) Solar
Generation Plus Storage Behind-the-Meter (BTM) Request for Proposals (RFP) • Program will be designed for commercial & municipal customers • Deploys Solar Plus Batteries
• Deploys Battery Only Systems where applicable
• Enhances peak load management
• Increases local resiliency and reliability
• Supports overall grid health
6 7
Task: Date:
Issue RFP March 10, 2025
Deadline for written questions to be submitted March 21, 2025, 5:00 PM PDT Responses to written questions March 21, 2025
Submittal due date April 7, 2025, 5:00 PM PDT
Evaluate Proposals (oral interviews if needed) April 7 – May 9, 2025 Results to Board for Selection May 29, 2025
Commercial & Industrial (C&I) Solar
Generation Plus Storage Behind-the-Meter (BTM) Request for Proposals (RFP) Completed Community Events
8 DATE DESCRIPTION
February 5, 2025 California Efficiency + Demand Management Council (EM&V Forum)
February 12, 2025 SANDAG Regional Climate Workshop
February 15, 2025 NSDC NAACP Youth Council Black History Brunch February 19, 2025 San Marcos CAP Citizens Advisory Committee February 22, 2025 The Learn Program – Home Electrification Fair February 24, 2025 City of Oceanside Senior Listening Session February 24, 2025 Battery Storage Safety and Technological Advancements Discussion February 25-27, 2025 Intersolar & Energy Storage Conference Upcoming Community Events
9 DATE DESCRIPTION
March 15, 2025 NCAAWA 30th Anniversary Women's Conference March 27, 2025 Oceanside Chamber of Commerce: Meet the City Event April 16, 2025 Carlsbad Chamber of Commerce: Green Business Expo April 23, 2025 Vista Environmental Commission: Presentation on Microgrids April 24, 2025 San Diego County Farm Bureau Graze 2025
Solar Plus Update
10 • 12 Active / 4 Complete Contracts (as of 01/22/25)* • Solana Beach 4 Active, 0 Complete
• Carlsbad 1 Active, 1 Complete
• Escondido 2 Active, 0 Complete
• San Marcos 4 Active, 1 Complete
• Oceanside 5 Active, 1 Complete
• Vista 4 Active, 1 Complete
*Current focus is onboarding channel partners for program expansion Questions/Discussion
11 Item 4: Regulatory Update
12 Clean Energy Alliance: Regulatory Update
Tim Lindl – Keyes & Fox LLP
February 27, 2025
14 Overview
● Power Charge Indifference Adjustment (PCIA) Primer (cont’d) ● New Rulemaking 25-02-005: Revising the PCIA Ratemaking Methodology and Process
PCIA Overview
● The PCIA is the “exit fee” that is intended to ensure such indifference remaining SDG&E customers to be left economically “indifferent” to CEA’s customers leaving SDG&E’s service.
CEA’s
Portfolio
Costs
PCIA Revenue
Reuirement
PCIA Revenue
Requirement
CEA’s
Generation
Rate
16 Setting PCIA Rates
ACTUAL
YEAR-END
PABA BALANCE
FORECASTED
INDIFFERENCE
AMOUNT
PCIA REVENUE
REQUIREMENT
17 Setting PCIA Rates – Forecast Component
FORECAST
COST OF
UTILITY
PORTFOLIO
FORECAST
VALUE OF
UTILITY
PORTFOLIO
INDIFFERENCE
AMOUNT
(PCIA)
FORECAST
RPS ADDER
($/GWH) *
GWh
FORECAST
VALUE OF
UTILITY
PORTFOLIO
ENERGY
INDEX
($/GWH) *
GWh
FORECAST
RA ADDER
($/kW-mo) *
kW-mo
18 Setting PCIA Rates – True-Up Component
ACTUAL
COST OF
UTILITY
PORTFOLIO
ACTUAL
VALUE OF
UTILITY
PORTFOLIO
FINAL
RPS ADDER
($/GWH) *
GWh
ACTUAL
VALUE OF
UTILITY
PORTFOLIO
ACTUAL
COST OF
ENERGY
FINAL
RA ADDER
($/kW-mo) *
kW-mo
ACTUAL
YEAR-END
PABA
BALANCE
19 Setting PCIA Rates – RA Adder
RA ADDER
($/kW-mo)
* kW-mo
Three Different Kinds of Capacity
• * System *
• Local
• Flexible Capacity
20 Setting PCIA Rates – RA Adder
Developments in Last Year’s ERRA
• Publication of MPBs delayed and then revised twice
• October 8 ALJ Rulings requesting “procedural mechanisms” in ERRA Forecast cases to reduce potential over or under-collections tied to the RA MPB
• Decision 24-12-040 adopted 2025 PCIA rates for SDG&E
21 New PCIA Rulemaking 25-02-005
Goals:
• To consider and identify reasonable improvements to existing ERRA and PCIA rules, mechanisms, and processes to ensure best practices in utility forecasting and other procurement plan activities;
• To identify ways to mitigate and respond to rate volatility, whether resulting from market conditions or ratemaking constructs;
• To best ensure indifference among bundled and departed customers; and • To provide policy guidance to ensure that individual utility forecast ratemaking proceedings function as efficiently and consistently as possible. 22 New PCIA Rulemaking 25-02-005
Two Tracks
● Track 1: Focused on near-term revisions to the RA MPB ● Track 2: Lingering issues that have arisen during prior ERRA Forecast and Compliance cases
23 QUESTIONS?
Tim Lindl
[email protected]
(510) 314-8385
24 Item 5: Battery Storage
Informational Discussion
25 Battery Energy Storage Systems
• First in a series of presentations on BESS to orient and inform the CEA Board
• Energy Storage is and will play a pivotal role in providing and supporting renewable energy goals and maintaining
grid reliability during peak demand
• To reach its 2045 100% clean energy target, California is projected to need 52,000 Megawatts (52 Gigawatts) of
energy storage capacity
26 Battery
Energy
Storage
Systems
27 Battery
Energy
Storage
Systems
28 February 27, 2025
Clean Energy Alliance Board of Directors Meeting
Jason Anderson, President and CEO, Cleantech San Diego
Overview of Battery Energy Storage Systems
We are a business association founded 18 years ago by
visionary leaders from the private, public, and academic sectors who recognized a growing cleantech industry as the next great economic opportunity for the San Diego region.
Our support of the cleantech sector spans solar,
wind, energy efficiency, storage, electric
vehicles, and biorenewables.
We were founded on the premise that setting a high bar for sustainability would result in an economically-viable
response from industry to help meet those goals.
What do we do?
Position the greater San Diego region as a global leader in the cleantech economy.
How do we do it?
Foster collaborations across the private-public-academic landscape, lead advocacy efforts to promote cleantech priorities, support energy entrepreneurs, and encourage equitable investment across the San Diego region.
Who’s with us?
More than 135 businesses, universities, governments, and nonprofits committed to advancing sustainable solutions for the benefit of the economy, the environment, and all members of the community.
*Cleantech and Solar Installation Jobs are not mutually exclusive
THE CLEANTECH INDUSTRY IN SAN DIEGO
2023 ECONOMIC IMPACT STUDY
867
23,305 15,220
$128,188
Direct 21,305
Indirect 7,120
Induced 10,050
38,525
Direct $6.0 Billion
Indirect $1.6 Billion
Induced $1.8 Billion
$9.4 Billion
Agenda
• About BESS
• BESS Benefits
• Why BESS
• Technology Advancements
• Safety Codes and Standards
• Best Practices
• BESS in San Diego
• Public Sentiment
Context for BESS
Conversation
Sept. 2023: Fire in Industrial Park in Valley Center
May 2024: Fire in Industrial Park Near Otay Mesa
Sept. 2024: Fire in Industrial Park in Escondido
Sept. 2024: City of San Marcos Considers BESS Opposition Oct. 2024: City of Escondido Considers Ordinance
Prohibiting BESS
Dec. 2024: San Diego County Considers Additional
Requirements for BESS
Jan. 2025: Fire at Moss Landing
Feb. 2025: SD County Considers Support for AB 303
Incidents Have Significantly Decreased
• According to EPRI statistics,
BESS fire incidents are
decreasing while deployments
are increasing substantially
• The rate of BESS failure
incidents fell 97% between 2018
and 2023
• During this time, codes and
standards regulating BESS have
rapidly evolved to better address
safety concerns
Introduction to Battery
Energy Storage
Systems (BESS)
BESS = Battery Energy Storage System
BESS is one of the fastest growing and
rapidly evolving technologies in the energy
transition
What is a Battery?
• A device that stores energy that can be
used later
• Typically, electro-chemical energy
storage
What Can BESS Do?
• Charge/discharge energy at the time of
need
• Help stabilize the grid
• Regulate frequency and voltage
• Prevent blackouts
• Reduce the need for transmission
upgrades
Types of Battery Projects
• Residential or Commercial:
smaller and typically behind
the meter
• Utility Scale: 10MW+
4 hours of energy
• Long Duration Energy Storage:
8+ hours of energy
Batteries range from small-scale use for single family residences or businesses up to utility-scale systems
• More renewable energy can be placed on the grid
• Provides emergency back-up power
• Lowers costs by storing energy when the price of
electricity is low
• Balances power supply and demand instantaneously
• Makes the grid more reliable, resilient, and efficient BESS
Benefits
A 2024 CAISO
study estimated
that California is
projected to need
50 gigawatts of
energy storage by
2045 to meet its
greenhouse gas
reduction goals.
Why BESS
• Midterm Reliability
• Resource Adequacy (RA)
Requirements
• Integrated Resource Planning
• Renewable Portfolio Standards
CCA Obligations
Supported by BESS
Technology Advancements Are Rapidly Evolving
• Moving toward full engineering and secured outdoor containerized solutions as opposed to indoor installations
• Advancements in monitoring, detection, and thermal imaging • Advancements in chemistry options
Safety Codes
and Standards
National codes and safety standards guide the planning, developing, and operating of each energy storage project • NFPA 855 – mandatory requirements for design,
installation, commissioning, operation, maintenance,
and decommissioning of energy storage facilities
• UL9540A – comprehensive large-scale fire testing
that tests the equipment’s reaction to a possible
thermal event at the enclosure level, not just the
battery cells and modules.
• California Fire Code – based on national standards
with updates anticipated in July 2025
Today’s BESS safety features
and best practices provide:
• Hazard Mitigation Analysis
• Battery Management Systems
• Emergency Shutdown
• Flammable Gas Detection
• Fire Detection and Alarm
• Direct Injection Fire Suppressant
• Exhaust Ventilation
• Deflagration Venting
• First Responder Training
• Emergency Response Plans
Best Practices
BESS in San Diego County
San Diego County Residents Support BESS
Overview of Battery Energy Storage Systems
February 27, 2025
Clean Energy Alliance Board of Directors Meeting
Jason Anderson, President and CEO, Cleantech San Diego
Questions/Discussion
47 Item 6: Mid-Year Budget Review
48 FY24/25 Mid-Year Budget Review
and Full-year Forecast
February 27, 2024
Topics for Financial Review
• Actual financial performance through December 2024
• Forecast through June 2025
• JP Morgan credit line compliance
50 Financial Performance through December 31, 2024
51 Actual Budget
Variance:
Favorable /
(Unfavorable)
YTD Actual as %
of YTD Budget
OPERATING REVENUES
Total Operating Revenues $207,804,870 $199,667,399 $8,137,471 104%
OPERATING EXPENSES
Total Cost of Goods Sold (Energy Expense) 157,212,702 163,753,367 6,540,665 96% Other Operating Expenses (excluding COGS) 4,455,307 4,289,264 (166,043) 104% Total Operating Expenses $161,668,010 $168,042,631 $6,374,621 96% OPERATING INCOME/(LOSS) $46,136,860 $31,624,768 $14,512,092 146% NON-OPERATING REVENUES (EXP.) -
Total Nonoperating Income/(Expense) (887,024) (671,312) (215,712) 132% -
CHANGE IN NET POSITION $45,249,836 $30,953,456 $14,296,380 146% Beginning Net Position (16,964,834)
Ending Net Position 28,285,002
Year-to-date
YTD December 2024 (6 months)
Financial Highlights
• Revenues (billing to Customers)
• $8.1 million (4%) higher than budget
• Although usage was 2% lower than budget, it was 4% higher than budget during peak months of July-September when customer rates are higher
• Expenses
• 4% below budget
• Energy costs were lower than budgeted
• Non-energy costs were 4% above budget - mostly related to timing • Change in Net Position
• $45.3 million, or $14.3 million better than the budget of $31.0 million 52 Financial Performance Projected through June 30, 2024 53 Full Year Forecast
FY2024-2025
Full Year Budget
FY2024-2025
Variance: Favorable /
(Unfavorable)
OPERATING REVENUES
Total Operating Revenues $363,088,496 $360,839,549 $2,248,947
OPERATING EXPENSES
Total Cost of Goods Sold (Energy Expense) 311,953,629 317,090,165 5,136,536 Other Operating Expenses (excluding COGS) 9,649,949 9,378,650 (271,299) Total Operating Expenses $321,603,579 $326,468,815 $4,865,237 OPERATING INCOME/(LOSS) $41,484,918 $34,370,733 $7,114,184 NON-OPERATING REVENUES (EXP.) -
Total Nonoperating Income/(Expense) (1,136,089) (1,063,383) (72,705) -
CHANGE IN NET POSITION $40,348,829 $33,307,350 $7,041,479 Ending Net Position $23,383,949
Full Year FY2024-2025
Full-year FY2025 (12 months) Forecast
• Revenues (billing to Customers) expected to be $4.8
million, or 4%, higher than the full-year budget
• Expenses expected to be very close to budget
• Change in Net Position expected to be
• $40.3 million, or $7.0 million better than the budget of $33.3 million
• Less favorable in the 2nd half of the year, although could be better since some conservatism is built into the forecast 54 JP Morgan Credit Line
• Met both Credit Line Covenants at 9/30 and 12/31
• On track to comfortably meet covenants going forward
• Current credit line expires January 2026
55 Dec 31 Mar 31 Jun 30 Sept 30 Dec 31
2024 2025 2025 2025 2025
Metric
DSCR 1.0 12.2 16.1 27.7 48.0 60.3
DLOH 45 57 52 35 80 101
FY2025-2026 Budget Timeline
• Board Meeting May 29, 2025 – Draft Budget Review
• Board Meeting June 26, 2025 – Final Budget Approval
56