Desert Community Energy Board of Directors
February 14, 2022

ATTENTION: DCE VOTING MEMBERS WILL RECEIVE A UNIQUE PANELIST LINK BY EMAIL. PLEASE USE THIS LINK TO PARTICIPATE IN THIS MEETING.

DESERT COMMUNITY ENERGY

BOARD MEETING AGENDA
Monday, February 14, 2022
*Please note the start time of 3:00 p.m.*
Pursuant to Assembly Bill 361 and the findings made by the DCE Board, this meeting will only be conducted via video/teleconferencing.

INSTRUCTIONS FOR PUBLIC PARTICIPATION
Online:
https://us02web.zoom.us/j/85325433480?pwd=M1hIWVJkb0liajhKNzcrbmc0ejZTZz09 Passcode: 475380
One tap mobile:

US: +16699009128,,85325433480#
By Phone:

Dial In #: +1 669 900 9128
Webinar ID: 853 2543 3480
Passcode: 475380
This will provide listening access and ability to address the DCE Board when called upon.

IF YOU ARE UNABLE TO CONNECT VIA DIAL IN OPTION, PLEASE CALL 760-346-1127 Members of the public are encouraged to submit comment in connection with the Desert Community Energy meeting by email to: [email protected] by 5:00 p.m. on the day prior to the committee meeting. Comments intended to be read aloud into the record should be no more than 300 characters in length.

THIS MEETING IS HANDICAPPED ACCESSIBLE.

ACTION MAY RESULT ON ANY ITEMS ON THIS AGENDA.

1. CALL TO ORDER

2. ROLL CALL – Jennifer Nelson
A. Member Roster 4

3. PUBLIC COMMENTS ON AGENDA ITEMS
Any person wishing to address the Desert Community Energy Board on items appearing on this agenda may do so at this time. Please limit comments to 3 minutes. At the discretion of the chair, additional public comment time and/or opportunities during the meeting may be granted.

4. BOARD MEMBER / DIRECTOR COMMENTS

5. CONSENT CALENDAR
A. Approve Minutes from Board Meeting of January 10, 2022 5 B. Affirm that findings still exist, pursuant to Assembly Bill 361, and 8 authorize continuation of remote teleconference/virtual meetings of Desert Community Energy
C. Authorize the Executive Director to negotiate and execute 9 amendments to the Renewable Power Purchase Agreement and Renewable Energy Purchase and Sale Agreement with Deer Creek Solar I

6. DISCUSSION / ACTION
A. Contract for Distributed Energy Resources Program – David Freedman 11 Recommendation: Authorize the Executive Director to finalize and sign a contract with TerraVerde Energy for a Behind-the-Meter Distributed Energy Resources Program, requiring no costs to DCE until additional Board action is taken
B. Resolution in Support of Rooftop Solar and Net Energy Metering – 58 David Freedman
Recommendation: Adopt Resolution 2022-02 in support of Net Energy Metering and direct staff to distribute the resolution to Governor Newsom, the region’s legislative delegation, and members of the California Public Utilities Commission

7. INFORMATION
A. Attendance Record 63
B. Unaudited Financial Report for July 1, 2021 to November 30, 2021 64 C. Update on DCE Program Activities 68
D. Southern California Edison Time-Of-Use Billing Transition 71

8. PUBLIC COMMENTS ON NON-AGENDA ITEMS
Any person wishing to address the Board on items not appearing on this agenda may do so at this time. Please limit comments to 2 minutes. At the discretion of the chair, additional public comment time and/or opportunities during the meeting may be granted.

9. ANNOUNCEMENTS
The next DCE meeting will be held March 21, 2022 at 2:30 p.m. via Zoom webinar.

10. ADJOURNMENT

DESERT COMMUNITY ENERGY

BOARD MEMBER ROSTER
Voting Members Seat on Committee Representative
City of Palm Desert DCE Vice Chair
Sabby Jonathan
Mayor Pro Tem
Alternate: Councilmember Kathleen Kelly
City of Palm Springs DCE Chair
Geoff Kors
Councilmember
Alternate: Mayor Lisa Middleton
DCE Staff
Tom Kirk, Executive Director
Katie Barrows, Director
David Freedman, Program Manager
Liz Barnwell, Management Analyst
Janice Reitman, Accounting Manager
ITEM 2A
ITEM 5A
Desert Community Energy Board
Meeting Minutes
January 10, 2022
3:00 pm
Held via Zoom videoconference

1. CALL TO ORDER
The meeting of the DCE Board was called to order by Chair Geoff Kors, City of Palm Springs, at 3:00 p.m. via Zoom videoconferencing, pursuant to Assembly Bill 361.

2. ROLL CALL
Roll call was taken, and it was determined that a quorum was present.

Members Present Agency
Councilmember Geoff Kors, Chair City of Palm Springs
Mayor Pro Tem Sabby Jonathan, Vice Chair City of Palm Desert DCE Staff & Consultants
Tom Kirk
Katie Barrows
David Freedman
Liz Barnwell
Erica Felci
Claude Kilgore
Emmanuel Martinez
Jennifer Nelson
Jaclyn Harr
Chris Weber
Don Dame
Others Present
Don Barrett
Heather Horning
Tracy Sheldon
The Energy Authority
The Energy Authority
DCE Consultant
Community Advisory Committee
City of Palm Desert
City of Palm Springs

3. PUBLIC COMMENTS ON AGENDA ITEMS
None

4. BOARD MEMBER / DIRECTOR COMMENTS
Vice Chair Jonathan thanked the Chair and DCE staff for moving the meeting start time to accommodate a schedule conflict.

The audio file for this meeting can be found at: http://www.desertcommunityenergy.org Desert Community Energy Board of Directors
Meeting Minutes – January 10, 2022
Director Katie Barrows introduced two new staff members – David Freedman, Program Manager and Liz Barnwell, Management Analyst -- and provided a brief update on the OhmConnect Thermostat program as well as the distributed energy resources request for proposals.

5. CONSENT CALENDAR

IT WAS MOVED BY MAYOR PRO TEM JONATHAN AND SECONDED BY
COUNCILMEMBER KORS TO:

A. Approve Minutes from Board Meeting of November 29, 2021 B. Affirm the findings still exist, pursuant to Assembly Bill 361, and authorize continuation of remote teleconference/virtual meetings of Desert Community Energy
C. Appoint Don Barrett of Palm Springs to fill a vacancy on the Community Advisory Committee to complete the term ending in August 2023
THE MOTION CARRIED WITH 2 AYES.

Mayor Pro Tem Jonathan Aye
Councilmember Kors Aye
Don Barrett, newly appointed Community Advisory Committee member, shared his goals for participating in the Committee and thanked the Board members for the appointment.

6. DISCUSSION / ACTION
A. Line of Credit with River City Bank – Katie Barrows
Ms. Barrows provided the staff report, which included priorities related to cash flow, the request for proposals process, loan terms and the next steps in the process. Member discussion ensued on the line of credit terms and requirement of a guaranty from the City of Palm Springs.

Prior to the vote, Ms. Barrows noted that minor edits were needed in Resolution No. 2022- 01, removing the 0 from Code Section 366.2 and formatting in paragraph nine, would need to be included in the motion.

IT WAS MOVED BY COUNCILMEMBER JONATHAN AND SECONDED BY

COUNCILMEMBER KORS TO, CONTINGUENT ON THE CITY OF PALM SPRINGS CITY COUNCIL APPROVING THE GUARANTY, ADOPT RESOLUTION NO. 2022-01

WITH MINOR GRAMMATICAL EDITS INCORPORATED, APPROVING A CREDIT FACILITY WITH RIVER CITY BANK IN AN AMOUNT NOT TO EXCEED $8,000,000

AND AUTHORIZING THE EXECUTIVE DIRECTOR, IN CONSULTATON WITH LEGAL

COUNSEL, TO NEGOTIATE AND TAKE SUCH ACTION NECESSARY AND

APPROPRIATE TO FINALIZE AND EXECUTE THE CREDIT FACILTY DOCUMENTS

FOR A REVOLING LINE OF CREDIT CONSISTENT WITH THE TERM SHEET DATED DECEMBER 13, 2022, AND RELATED LOCKBOX AGREEMENTS, INCLUDING AND

EXHIBITS, SCHEDULES, CERTIFICATES, AND ANCILLARY DOCUMENTS

NECESSARY TO CLOSE THE CREDIT FACILITY AND OBTAIN ACCESS TO

FUNDING TO ADDRESS WORKING CAPITAL REQUIREMENTS
Desert Community Energy Board of Directors
Meeting Minutes – January 10, 2022
THE MOTION CARRIED WITH 2 AYES.

Mayor Pro Tem Jonathan Aye
Councilmember Kors Aye
B. Statewide Residential Emergency Load Reduction Program – David Freedman David Freedman provided the staff report.

IT WAS MOVED BY MAYOR PRO TEM JONATHAN AND SECONDED BY

COUNCILMEMBER KORSTO AUTHORIZETHE EXECUTIVE DIRECTOR TO TAKE ANY NECESSARY STEPS TO COORDINATE DCE’S PARTICIPATION IN THE

EMERGENCY LOAD REDUCTION PROGRAM
THE MOTION CARRIED WITH 2 AYES.

Mayor Pro Tem Jonathan Aye
Councilmember Kors Aye

7. INFORMATION
The following items were put in the agenda packet for members’ information :

A. Attendance Record
B. Unaudited Financial Report for July 1, 2021 to October 31, 2021 C. Update on California’s Arrearage Payment Program
Mayor Pro Tem Jonathan requested that future agendas include a comparison of the financials with the annual budget.

8. PUBLIC COMMENT ON NON-AGENDA ITEMS

None

9. ANNOUNCEMENTS
The next DCE meeting will be held February 14, 2022 at 2:30 p.m. via Zoom webinar.

10. ADJOURNMENT
Chair Kors adjourned the meeting at 3:25 p.m.

Respectfully submitted,
Jennifer Nelson
Executive Assistant/Clerk
ITEM 5B
a

STAFF REPORT
Subject: Remote Teleconference/Virtual Meetings Pursuant to Assembly Bill 361 Contact: Jennifer Nelson, Executive Assistant/Clerk ([email protected]) Recommendation: Affirm that findings still exist, pursuant to Assembly Bill 361, and authorize continuation of remote teleconference/virtual meetings of Desert Community Energy
Background: All meetings of the Desert Community Energy Board and its Community Advisory Committee are subject to the Ralph M. Brown Act (Gov. Code §§ 54950 et seq.), and must be open and public so that any member of the public may attend and participate in the meetings.

Starting in March 2020, Governor Newsom issued a series of executive orders aimed at preventing the spread of COVID-19, as it was determined that social distancing was an important factor addressing the pandemic. Among these were Executive Orders N-25-20, N-29-20 and N-35-20 (collectively, the “Brown Act Orders”) that waived the teleconferencing requirements of the Brown Act to allow legislative bodies to meet virtually.

On June 11, 2021, the Governor issued Executive Order N-08-21 to begin winding down some of the prior measures that were adopted to respond to COVID-19. Notably, this order rescinds the Brown Act Orders, effective September 30, 2021. On September 16, 2021, Governor Newsom signed Assembly Bill 361 (AB 361), which effective October 1, 2021, allows legislative bodies to meet virtually provided the legislative body makes specific findings.

Specific Findings Required under AB 361:

The DCE Board has previously made the following findings pursuant to AB 361:

1. A statewide state of emergency is currently in place;

2. State or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19; and

3. Meeting in person would present imminent risks to the health or safety of attendees.

With this item, staff is recommending the DCE Board confirm these findings still exist and continue virtual meetings, pursuant to AB 361.

Fiscal Analysis: There are no additional costs to DCE for hosting virtual meetings.

Desert Community Energy Board
February14, 2022
ITEM 5C
Desert Community Energy Board
February 14, 2022

STAFF REPORT
Subject: Contract Amendments with Deer Creek Solar I, LLC for Deer Creek Solar + Storage Project
Contact: Katie Barrows, Director ([email protected])
Recommendation: Authorize the Executive Director to negotiate and execute amendments to the Renewable Power Purchase Agreement and Renewable Energy Purchase and Sale Agreement with Deer Creek Solar I
Background: At the meeting of February 25, 2021, the DCE Board approved a 20-year renewable power purchase agreement (PPA) with Deer Creek Solar I, LLC (Deer Creek) for the Deer Creek Solar + Storage Project in Tulare County, California. The Deer Creek project consists of a 50 MW solar component connected to a 50 MW/200 MWh battery storage component (i.e., a 50 MW battery that can discharge for four hours). The solar component of the project will generate nearly 190,000 MWh annually in its first year of operation, which is the equivalent of powering 15,500 homes with 100% carbon-free electricity. The battery storage component will allow for the solar power to be stored and discharged at the time power is most needed by the grid, such as during the evening peak, providing much need reliability and solar integration to the grid as well as significant financial value to DCE.

To assist DCE in meeting its obligations under Senate Bill 350 to procure at least 65% of its required renewable energy under long-term contracts, DCE and Deer Creek also signed a Renewable Energy Purchase and Sale Agreement (REPSA). Under the terms of this agreement, Deer Creek delivers to DCE PCC1 renewable energy from its portfolio equal to the expected Year 1 output of the Deer Creek solar component until Deer Creek becomes commercially operational.

This energy is priced similarly to short-term PCC1 energy that The Energy Authority (TEA) could expect to procure on DCE’s behalf on the open market.

Deer Creek, through its developer Vesper Energy (Vesper), has informed DCE that because of delays imposed by Southern California Edison (SCE) in connecting the project to the SCE’s transmission lines, Deer Creek will not be able to achieve the Commercial Operation Date (COD) that was originally set out in the PPA.

As a result of the delay, DCE will need to acquire additional energy products, such as Resource Adequacy, to replace the products that would have been obtained from Deer Creek during the delay period. A portion of these products will be purchased through an increase in energy purchases under the REPSA.

Deer Creek and DCE staff are finalizing terms of an amendment to the PPA that extends the COD based on SCE’s current estimate for completion of interconnection facilities and allocates the financial impact of the delay between Deer Creek and DCE, with Deer Creek providing a cash payment now to assist DCE with the procurement of replacement energy. Deer Creek and DCE staff have also been finalizing the details of a draft amendment to the REPSA to reflect the increase in PCC1 renewable energy procurement.

Much like the original agreements, the amendments contain proprietary information that is being vetted by DCE and Deer Creek’s legal counsel. With this item, DCE staff is seeking authorization for the Executive Director to finalize the agreements to extend the COD and secure the lump-sum payment.

Fiscal Analysis: The amendment to the PPA would extend the COD based on SCE’s current estimate for completion of interconnection facilities and allocates the financial impact of the delay between Deer Creek and DCE, with Deer Creek providing a cash payment now to assist DCE with the procurement of replacement energy. A financial model prepared by TEA estimates the additional costs to DCE because of the delay to the interconnection facilities. Initial estimates show that additional costs of DCE’s renewable energy purchases, taking into account the lump-sum payment from Deer Creek, are expected to be approximately $3.1 million. TEA will continue to seek opportunities to find replacement energy products at the most efficient cost.

ITEM 6A
Desert Community Energy Board
February 14, 2022

STAFF REPORT
Subject: Contract for Distributed Energy Resources Program Contact: David Freedman, Program Manager ([email protected]) Recommendation: Authorize the Executive Director to finalize and sign a contract with TerraVerde Energy for a Behind-the-Meter Distributed Energy Resources Program, requiring no costs to DCE until additional Board action is taken Background: At the August 2021 Board meeting, DCE staff provided an update on efforts to respond to the Board’s interest in developing local renewable projects, particularly those featuring energy storage. Staff described the intent to solicit proposals from qualified industry partners capable of implementing an innovative program to deploy distributed energy resources, including battery energy storage, for DCE customers. A distributed energy resource is a small-scale unit of power generation that operates locally and is connected to a larger power grid at the distribution level, often behind a customer’s retail power meter. Rooftop solar, battery storage, microgrids, and energy efficiency and demand management are often collectively referred to as Distributed Energy Resources or DERs. When the energy from one of these DERs is generated at a home or business and can be used to directly offset the customer’s retail load, the resource is considered behind the meter (BTM).

On November 19, 2021, staff released a Request for Proposals (RFP) seeking qualified organizations and business entities to develop and implement a safe and affordable BTM battery energy storage program for DCE customers. DCE received five proposals by the deadline of December 23, 2021.

An evaluation team consisting of two DCE staff members, a portfolio manager from The Energy Authority (TEA) and DCE Community Advisory Committee member Daniel Paris, a Palm Desert resident, reviewed the proposals and independently scored them. This scoring process was in line with the criteria outlined in the RFP, which included experience and qualifications; the scope of work’s responsiveness to the RFP, including the proposed approach to the project, expected time commitment of key personnel and technical approach; and the price and costs.

The three highest scoring firms were invited to participate in interviews with the evaluation team, which occurred on January 24, 2022. Following the interviews, the evaluation team met again to review the shortlisted projects based on the information gathered in the interview process. They reviewed the proposals considering which would meet DCE’s customer needs and program goals, as well as the cost of the proposed program.

Based on the evaluation of proposals and the interviews, TerraVerde Energy (TerraVerde) had the highest score with its Distributed PPA Program proposal. The San Francisco-based company is an independent energy consulting firm that has, over the past 12 years, helped implement more than $500 million worth of distributed solar PV and battery energy storage systems. TerraVerde has developed a distributed power purchase agreement (PPA) program that enables CCAs to partner with customers in deploying distributed solar plus battery energy storage systems – with no up-front cost. Under this program framework, the CCA engages target customers with a cost savings and energy resiliency offering in the form of a solar plus battery PPA. Upon securing Letters of Interest from a cohort of customers, the CCA then procures a Distributed Solar + Battery PPA from developers for projects sited at these customer locations. Based on the pricing received from the market, the CCA then offers the electricity generated from the deployed solar PV systems to their cohort of customers at a rate that is higher than the Distributed PPA rate but lower than the customer's standard (or otherwise applicable) rate. Thus, the CCA charges the customer a PPA rate that is lower than the customer’s gross bill savings, but at a rate higher than what the CCA is paying to the vendor, thus generating both customer net savings, and CCA net revenue.

TerraVerde will provide program design, procurement planning, customer engagement, and solicitation administration services at no cost, and will only be compensated when DCE decides to proceed with implementation phase of the program. In the initial program design and feasibility assessment phase, TerraVerde will conduct a program design and feasibility assessment of a pilot distributed DER program (5-6 Megawatts, MW) for non-residential customers and present its findings. This phase will include identifying target customers, evaluating customer gross savings from solar and battery resources, evaluating DER portfolio impacts to DCE, determining the appropriate program structure as well as producing a cash flow pro forma.

The pilot program will focus on large non-residential customers whose energy use profiles and rates structures indicate a high-probability of both the customer and DCE benefiting from DERs at their locations. This could include larger commercial customers, municipal facilities, and public facilities such as schools and public safety facilities. In the program design and feasibility assessment phase, TerraVerde will consider possible incentives under the Self-Generation Incentive Program of the California Public Utilities Commission (CPUC), which provides a rebate for battery energy storage projects. Funding for this program is expected to be fully subscribed in the first half of 2022. TerraVerde also will factor in the effect of changes likely to occur in the coming months to the CPUC’s Net Energy Metering tariff, which may reduce the financial benefits of new energy projects, as well as expected reductions in the Federal Tax Credit starting at the end of next year. Other incentives may possibly become available through state and federal programs to encourage renewable energy and energy storage.

Staff will bring to the Board TerraVerde’s findings, including a cash flow pro forma for the program.

Should the Board provide direction to proceed to the Program Development phase, TerraVerde will engage target customers, develop program documents including the PPA and Program Participation Agreement between DCE and its customers to be approved by the Board, administer the RFP process for the PPA, and support DCE in presenting and negotiating the final Program Participation Agreements with customers. This phase would also be done at no cost to DCE. The program design and feasibility assessment and program development phases would largely run concurrently over a five-month period.

Program implementation is the final phase in TerraVerde’s proposed project. Should DCE choose to proceed with the program and move to the program implementation phase, Power Purchase Agreement(s) with vendors selected through the RFP process would be brought to the Board for approval and funding authorization. Procurement through the RFP process and contract negotiations would occur over a three-month period, followed by project design and permitting over another three-month period. TerraVerde will oversee the vendor in the implementation phase of the project and oversee vendor’s completion of the projects, expected to occur within 24 months of signature of the agreement with TerraVerde. Following completion, Terra Verde will provide program administration and asset management, including energy system and provider performance optimization, support for on-bill customer invoicing, Renewable Energy Certificate (REC) management and detailed energy performance analysis and financial reporting.

TerraVerde has substantial experience working with other CCAs. As part of the evaluation process, DCE staff spoke with staff of two CCAs that are currently working with TerraVerde, Pico Rivera Innovative Municipal Energy (PRIME) and California Choice Energy Authority (CalChoice).

PRIME and CalChoice staff both noted their positive experience working with TerraVerde under the same distributed PPA program described. DCE issued a Notice of Intent to Award on January 31, which was sent to all respondents to the RFP and posted on the DCE website. DCE did not receive protests from any other bidders within the deadline set out in the notice.

Staff is recommending the Board Authorize the Executive Director to finalize and sign a contract with TerraVerde Energy that is modeled after the services agreement provided with the RFP.

Much like Terra Verde’s other agreements with other CCA, it requires no up-front cost to DCE and instead outlines future costs should the Board provide the authorization to move to the next stages, including implementation. Additionally, staff would note that the distributed PPA program proposed by TerraVerde will provide DCE substantial opportunities to engage with large commercial customers as well as to solicit proposals from local solar companies in the PPA RFP process. This pilot program will provide an opportunity to evaluate the potential for an expanded program which would include residential customers. This program will help DCE achieve the goals frequently stressed by the Board, including exploring opportunities to promote local projects and local jobs, encouraging local investment and enhancing the clean energy profile of the Coachella Valley.

Fiscal Analysis: As noted above, TerraVerde will provide technical and financial due diligence, RFP development and administration services, and contract negotiation support services for the first and second phases of the project at no cost to DCE. TerraVerde is only compensated when the DCE Board approves projects for implementation.
• The contract with TerraVerde willoutline the payment terms for the implementation phase.

However, moving to this phase would require additional authorization from the Board.If approved by the Board, TerraVerde’s fees would be based on a percentage of the total project cost and scale of the DER portfolio. The proposed initial 5-6 MW pilot would have an estimated total project cost of roughly $15 million, and TerraVerde's development fee (at 6%) would be roughly $900,000, which would be paid in phases and based on deliverables: 50% of the development fee will be due upon DCE’s execution of the PPA with the selected vendor;
• 20% of the development Fee will be due upon DCE’s issuance of notice to the vendor to proceed with construction;
• 20% of the development fee will be due upon the receipt of Permission to Operate from Southern California Edison; and
• 10% of the development fee will be due upon DCE’s execution of the project completion form.

Although DCE will recover the development fee through the costs charged to its customers under their Program Participation Agreements, the development fee payments will likely be due to TerraVerde before the customers begin payments under their Program Participation Agreements.

Accordingly, staff will provide an analysis of the funding for the implementation phase of the project as part of the Board consideration of implementation agreements. In some cases, TerraVerde’s development fee can be reimbursed to DCE through the program capital financing structure
Terra Verde’s program administration and asset management services will be invoiced annually.

The annual fee for first year will be equivalent to $0.01 / kWh based on the estimated solar PV production and will increase annually by 3.5%. Assuming an average of 1500 kWh / kWp (kilowatt hour per kilowatt peak), this fee would be roughly $82,500 in the first year.

Any outreach costs for the program would be addressed through DCE’s existing outreach efforts and staff time.

Attachments:

1. TerraVerde Energy Distributed PPA Program Proposal

2. Request for Proposals: https://desertcommunityenergy.org/wp-content/uploads/2021/11/DCE-Request-for-Proposals-DER-final-11-2021-1.pdf :thumb

DISTRIBUTED PPA PROGRAM PROPOSAL
RESPONSE TO: BEHIND-THE-METER DISTRIBUTED ENERGY PROGRAM RFP December 23, 2021
prepared for
Desert Community Energy
Erica Felci
Katie Barrows
presented by
TerraVerde Energy
David Burdick
Executive Vice President

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 2 Proudly supporting CCAs with developing and implementing innovative customer programs TerraVerde Energy (“TerraVerde”) is pleased to present the following proposal to Desert Community Energy (“DCE”) regarding the Distributed Power Purchase Agreement (“PPA”) Program.

TerraVerde is a leading independent energy consulting firm proudly supporting CCAs with customer programs. Informed by our 12 years of Distributed Energy Resource (“DER”) project & program development expertise, we have extensive experience in supporting CCAs with the design, development, and implementation of customer programs, including:

Pico Rivera Innovative Municipal Energy’s
Distributed Power Purchase Agreement Program
Peninsula Clean Energy’s
Distributed Resource Adequacy Program
Sonoma Clean Power’s
Battery Backup Evaluation Program
In support of our work with CCAs, TerraVerde has developed software solutions that enable us to ingest CCA procurement cost data and customer meter data at scale, perform segment analysis to identify target customers, and run detailed analysis of the impacts of potential and existing programs for both CCAs and customers. Our expertise on both the retail and wholesale sides of the California’s electricity market empowers our innovative approach to supporting CCAs with developing customer DER programs.

TerraVerde is pleased to propose our innovative Distributed PPA Program (and related services) as our response to DCE’s request for behind-the-meter DER program proposals. This innovative program:
• Uniquely aligns CCA and customer interest in behind-the-meter solar + battery projects • Offers customers energy cost savings & resiliency (backup power) benefits from solar + battery systems deployed at customer facilities under a no-money down program participation agreement • Delivers a portfolio of local DERs that DCE can leverage to generate substantial value under current market conditions, as well as position against future opportunities as the market continues to evolve to provide more opportunities for DERs

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 3 Under our unique risk-free program development model, TerraVerde provides program design, procurement planning, customer engagement and solicitation administration services at no cost, and is only compensated when DCE decides to proceed with the program.

As further described in our proposal, TerraVerde’s highly qualified & experienced team will be dedicated to ensuring program success for both DCE and its customers, including:

Name Jen Petherick, PE Ali Chehrehsaz Daniel Postoian Ashley Hale David Burdick Title
Executive Vice
President, Projects
CEO Project
Developer
Project & Energy
Manager
Executive Vice
President, BD
Project Role Program Lead Program Support Project
Development Lead
Program Analysis
Lead
Customer
Engagement
Experience 15 Years 15 Years 14 Years 6 Years 6 Years
We would be thrilled to leverage our customer program expertise in partnering with DCE on this Distributed PPA Program, and trust that you will find our industry leading experience, capabilities, and expertise to be an excellent fit for your needs.

Regards,
David Burdick
Executive Vice President
TerraVerde Energy
1300 22nd Street, Unit 401
San Francisco, CA 94107
[email protected]
(415) 272-1014

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 4

TABLE OF CONTENTS

Cover Letter 2
Organization Profile / Qualifications 5
Project Approach 18
Exhibit A: Scope of Services 28
Exhibit B: Cost Proposal & Program Schedule 31
Exhibit C: Compensation Billing Rates 33
Exhibit D: Example Program Pro Forma 34

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 5

ORGANIZATION PROFILE / QUALIFICATIONS
Organization Name: TerraVerde Energy
A Brief History of TerraVerde Energy:

TerraVerde is a leading independent energy consulting firm proudly supporting CCAs with customer programs. Informed by our 12 years of Distributed Energy Resource (“DER”) project & program development expertise, we have extensive experience in supporting CCAs with the design, development, and implementation of customer programs, including:

Pico Rivera Innovative Municipal Energy’s
Distributed Power Purchase Agreement Program
Peninsula Clean Energy’s
Distributed Resource Adequacy Program
Sonoma Clean Power’s
Battery Backup Evaluation Program
When TerraVerde Renewable Partners LLC was founded in 2009, the sole mission of the company was to support public agencies in evaluating the feasibility of behind the meter solar PV, and if found feasible, to provide “owner’s rep” support services to assist in successful implementation of projects. Based on the success of this initial model, in 2014, the company expanded its offerings to include similar services for battery storage and a wide range of energy conservation measures. In early 2017, the company further broadened its scope to include DER program development support for CCAs. In 2018, the company Board decided to rebrand as TerraVerde Energy to reflect this broader scope, as well as, to accommodate a change in the company’s capitalization structure associated with one of the LLC’s members leaving the company.

Over these past 12 years, we have supported the successful deployment of over $500 million worth of DERs including 150 megawatts of solar PV and battery energy storage systems, for which we provided technical & financial due diligence, RFP development, solicitation administration, contract negotiations, and management of the installer through the design, permitting, installation, and commissioning phases of the projects. In addition, our asset management services team oversees the ongoing energy and financial performance of a portfolio of nearly 400 commercial scale solar PV & battery energy storage systems. We are currently working with 8 CCAs on our Distributed PPA Program including the Pico Rivera, Santa Barbara, Pomona, Baldwin Park, Lancaster, San Jacinto, Apple Valley, and Rancho Mirage.

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 6

THE TERRAVERDE ADVANTAGE

ORGANIZATIONAL CHART

ORGANIZATION SIZE
Total number of personnel: 15
Proposed number of personnel that could be available to provide services: 12

Objective Expertise | As independent energy advisors, TerraVerde operates as an extension of your team, leveraging financial, technical, and market expertise with your interests in mind.

Extensive Experience | Over the past 12 years, TerraVerde has developed $500 million in energy projects, including more than 150 MWs of solar, battery energy storage, and energy resiliency projects. To date, we have delivered over $50 million in energy cost savings to our clients.

Expertise on Both Sides of the Meter | Informed by our 12 years of working with CCAs, California Public Agencies (local governments, schools, water agencies, transit agencies), and commercial enterprises, TerraVerde has a deep, working knowledge of both the retail and wholesale sides of California’s electricity markets.

Risk-Free Development Model | TerraVerde can provide project due diligence and solicitation administration services at no cost to our client, and is only compensated when our client chooses to proceed with project implementation.

Ali Chehrehsaz
CEO
Jen Petherick
EVP Projects
Phil Villagomez
Sr. Director,
Asset Management
David Burdick
EVP Biz Dev
Ashley Hale
Project & Energy
Manager
Daniel Postoian
Project Developer
Steve Chan
Project Manager
Clayton Pierce
Project Developer
Tyler Cicero
Energy Engineer
Miya Lee
Energy Analyst
Robin Weldy
Asset Management
Portfolio Manager
Sarvesh Dandekar
Asset Management
Engineer
Kevin Ross
VP Biz Dev
Dylan Grayson
Software Developer
Milo Toor
Software Developer

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 7

QUALIFICATIONS OF PRINCIPAL TEAM MEMBERS
Jen Petherick
Title: Executive Vice President, Projects Role: Program Lead (Project Manager) TerraVerde Energy, San Francisco, CA Executive Vice President, 2015 – Present Leads the teams responsible for the analysis, development and implementation of Distributed Energy Resource projects and programs along with our CCA & other consulting engagements
GCL Solar Energy, San Francisco, CA. Project Manager, 2013 – 2015 Managed two utility scale solar PV projects of 7.5MWAC and 7MWAC from permitting phase through COD in 5 months. Worked on a 57MWAC solar PV project with 18 MW battery storage.

Pacific Utility, Concord, CA Manager, Engineering, 2011 – 2013 Responsible for the development and design of commercial through utility scale photovoltaic power projects.

Belectric, CA Manager, Project Design and Performance, 2009 – 2010 Successfully secured contract and managed development through construction of the first US project. Steered much of the early strategic and technical direction of the US office.

Years of Experience 15
Education
BS, Elec. Engineering,
2002
MA, Elec. Engineering,
2004
Certificates & Training
Licensed PE
LEED AP Certified
Ali Chehrehsaz
Title: CEO Role: Program Support
TerraVerde Energy, San Francisco, CA CEO, 2011 – Present Co-founded TerraVerde; lead analysis, engineering, and project development; transitioned to CEO in December of 2019
Tessera Solar, Houston, TX Project Manager, 2009
– 2011
Provided project management and development support as part of an IPP development team for multiple green field large scale solar electric power plants of up to 750 MW in generation capacity using PV and solar dish Stirling CSP technologies.

Petro-Canada, Calgary, AB & Houston, TX Project Engineer, 2006 – 2009 Conducted concept screening, front-end engineering and design, procurement, and construction planning of Fort Hills Oil Sands Projects.

Years of Experience 15
Education
BS, Engineering, 2006
Certificates & Training
Professional Engineer,
APEGA
Project Management
Professional, PMI

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 8 Daniel Postoian
Title: Project Developer Role: Project Developer
TerraVerde Energy, San Francisco, CA Senior Project Developer, 2021 – Present Focuses on project development, RFP administration, technical due diligence and contract negotiation for solar PV and battery energy storage projects on behalf of public agencies.

Baker Electric, Escondido, CA Engineering Manager, 2015 – 2021 Primary accountability for commercial solar & battery permitting and construction packages. Primary engineer on highest complexity projects, engineering contributor on many projects, engineering quality control on all project. Led site feasibility audits just prior to contract issuance to identify project risks that might call for adjustment to price or terms

Photonworks Engineering, Honolulu, HI Engineering & PM, 2013 – 2014 Responsible for project execution lifecycle of all commercial-scale PV projects at full service electrical EPC (1.37MWDC, 11 projects)

Integrated Power Corporation, Novato, CA Engineering & PD, 2008 – 2012 Technical leadership role at fast-paced startup, providing solar PV expertise and specialty procurement to electrical distributors and electrical contractors Years of Experience 14

Education
BS, Electrical Engineering,
2004
David Burdick
Title: Executive Vice President Role: Program Development Support TerraVerde Energy, San Francisco, CA Executive Vice President, 2019 – Present Leads TerraVerde’s Business Development Group, focused on assessing and developing Distributed Energy Resource programs and projects TerraVerde Energy, San Francisco, CA VP Asset Management, 2018 – 2019 Maximizing the energy and financial performance of distributed energy resources (solar energy systems, energy storage systems, energy efficiency projects) in their operational phase. Current Portfolio: $400M in projects, 100 MWs of solar & battery systems
Kurios Energy, Manteca, CA General Manager, 2015 – 2018 Commercial and residential solar and battery energy storage engineering, procurement, and construction; Lead development, installation, and administrative teams in the installation of 15 MW of solar and energy storage systems Years of Experience 6

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 9 Ashley Hale
Title: Project / Energy Manager Project Role: Analysis Lead TerraVerde Energy, San Francisco, CA Project / Energy Manager, 2018 – Present Preform feasibility analysis and savings projections for solar/storage modeling.

Support Asset Management department with development of quarterly reports.

Able Grid Energy Solutions, CA Data Analyst Intern, 2017 – 2018 Built an SQL database and then migrated data into the database for high output queries of energy market data. Analyzed the market trends for variations in pricing of capacity, energy and ancillary services across the state of California.

Katy’s Goodness, Chicago, IL Project Manager, 2016 – 2017 Implemented green initiatives, focusing on the addition of sustainable energy and energy efficiency tactics to the manufacturing facility. Including running the cost analysis of implementing solar and/or a wind turbine. Organized community drives, interacted with customers, represented the company at tradeshows and other events, and maintained inventory records.

Years of Experience 6
Education
BS, Engineering, 2016
MS, Engineering, 2019
ENERGY COMPANY CLIENTS SERVED OVER THE PAST 5 YEARS

Energy Company Project Years Served
MCE Building Efficiency Optimization &
Community Resiliency Centers
2017 – 2020
Lancaster Choice Energy Advanced Energy Community &
Distributed PPA Program
2019 – Present
Peninsula Clean Energy Distributed RA Program 2020 – Present Sonoma Clean Power Municipal & School Battery Studies 2020 – Present Pico Rivera Innovative Municipal Energy Distributed PPA Program 2020 – Present Apple Valley Choice Energy Distributed PPA Program 2021 – Present BPROUD (City of Baldwin Park) Distributed PPA Program 2021 – Present Pomona Choice Energy Distributed PPA Program 2021 – Present Rancho Mirage Energy Authority Distributed PPA Program 2021 – Present San Jacinto Power Distributed PPA Program 2021 – Present Santa Barbara Clean Energy Distributed PPA Program 2021 – Present

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 10

COMPREHENSIVE CLIENT LIST
Project Description
Client Name
Solar
PV Battery Project
Size
(kW) Size (kWh) Value
Community Choice Energy
Apple Valley Choice Energy
BPROUD (City of Baldwin Park)
Lancaster Choice Energy
Peninsula Clean Energy 4,147
Pomona Choice Energy
PRIME (City of Pico Rivera)
Rancho Mirage Energy Authority
San Jacinto Power
Santa Barbara Clean Energy
Sonoma Clean Power
School Districts
Armona Union ESD 550
Big Pine USD 198 $792K
Burton ESD 1,537 360 $6.2M
Calistoga JUSD N/A
Ceres USD N/A $4.2M
Chawanakee USD 708 $2.8M
Cinnabar SD 100 $290K
Clovis USD 16,372 4,000 $76.4M
Corcoran JUSD 1,327 $3.4M
Coronado USD
Delano UESD 4204 $3.2M
Dos Palos USD 316 $1.3M
Eureka USD 571 232
Fillmore USD N/A $938K
Firebaugh LDUSD 910 $4.1M
Fontana USD 13,453 12,127
Fowler USD 545 $2.1M
Golden Plains USD 987 $6.4M
Golden Valley USD 1,829 $7.1M
Hemet USD 3,094 1,890 $11.8M
Kerman USD 1,859 $8.2M
Kingsburg JUHSD 564 $1.5M
Lafayette ESD 500 $576K
Lakeport USD N/A
Lakeside Union Elem N/A $551K
Lancaster SD 2220 $4.3M
Lemon Grove SD/SDCOE 380 $925K
Lindsay SD 2,310 650 $12.8M
Los Altos SD 1,408 $5.2M

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 11 McSwain ESD N/A $246K
Mendota USD 1,538 $5.5M
Mendocino COE
Merced City ESD 1,323 $7.3M
Monterey Peninsula USD 761 $7.2M
Orinda USD 572 $3.0M
Pacific Union SD N/A $270K
Palmdale SD 7737 5408 $3.6M
Petaluma City Schools 1,060 $5.3M
Petaluma JUH 673 $5.5M
Pittsburg USD 3000
Placentia Yorba Linda USD N/A $5.4M
Pleasanton USD 3,028 $11.6M
Ramona USD
Riverdale JUSD 170 $1.1M
Riverway ES 138 $900K
Sanger USD 3,586 1,000 $15.9M
San Ramon Valley USD
Sierra USD 941 $3.9M
Taft City SD N/A
Tulare City Schools 2,538 540 $10.0M
Tulare JUHSD 3,406 $13.2M
Turlock USD N/A $3.1M
Twin Rivers USD N/A
Visalia USD 4,567 4,384 $22.3M
Washington USD 1,191 $4.8M
West Park ESD 136 $935K
Westside ESD 136 $757K
Windsor USD 1,564 548 $7.6M
Wright ESD 530 $3.4M
Yosemite USD 970 $3.8M
Alameda COE
Local Governments
City of Bishop 205 $631K
City of Davis N/A $9.0M
City of Lathrop 676 $2.1M
City of Woodland 2,469 $10.8M
City of Fairfield 1,100
City of Torrance
City of Riverside
City of Indian Wells
City of Gustine
El Dorado County 2,404 $7.1M
Inyo County 633 $1.7M
Water Agencies
Rancho California WD 5,011 $11.9M
Eastern MWD 15,911 $41.3M

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 12 Las Virgenes MWD 4,051 $8.7M
Santa Clarita Valley WA 5,459 $13.8M
Vallecitos WD 2,235 $4.9M
El Dorado ID 4,558 $11.3M
Novato Sanitary District 3,016 $2.1M
Valley Center MWD 1,320
Fallbrook PUD 1,120
Eastern Sierra CSD 110 $319K
Joshua Basin WD
South San Joaquin Irrigation District
Ventura River WD
Transit Agencies
Bay Area Rapid Transit 3,183 $14.8M
CA High Speed Rail 100,000 400,000
CalTrain
SamTrans

TOTAL CAPACITY OF BATTERY ENERGY STORAGE SYSTEMS INSTALLED TO DATE 19,971 kWh

SUBCONTRACTORS & SUPPLIERS
In service of our clients, we perform the development, implementation, and ongoing asset management of projects and programs with TerraVerde resources and do not subcontract for services. The only exception to this would be enlisting the services of a structural engineer (as needed) while evaluating the feasibility of rooftop solar PV projects. However, in the past 3 years, we have not subcontracted with any structural engineers or other service providers.

As outlined in our proposal, TerraVerde’s business model is to operate as independent advisors to CCAs in the development, deployment, and ongoing administration of Distributed Energy Resource programs.

As such, we do not partner or contract with suppliers. We create value for our clients by specifying feasible projects in detail and inviting suppliers to provide competitive proposals through our RFP process. We have an extensive history working with several suppliers and energy companies on behalf of our clients as we develop and implement programs on their behalf. We recommend public advertisement of project RFPs to obtain multiple competitive proposals for our clients. Additionally, we share the RFPs with participants (vendors) from our previous projects. We would be happy to share the distribution list with DCE.

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 13

REFERENCE PROJECTS & CONTACTS
Client PRIME (City of Pico Rivera)
Project Name Distributed PPA Program
Project Description DER program deploying behind-the-meter solar + battery projects that provide benefits to both CCAs and customers
Project Owner TBD
Project Partners TBD
Location City of Pico Rivera
Project Time Frame June 2020 – Present
Client Contact Kaitlin McGee
General Manager, Office of Sustainability
City of Pico Rivera
[email protected] | (562) 801-4437
TerraVerde Energy has been working with Pico Rivera Innovative Municipal Energy (PRIME) in developing an innovative distributed power purchase agreement program that is poised to lower customer electricity costs and generate millions in procurement cost savings to PRIME through the deployment of distributed solar PV & battery energy storage systems.

For this project, TerraVerde’s scope included:
• Project Assessment for Solar + Battery Projects at City & School District Facilities: including evaluation of the technical and financial feasibility solar backup power enabled solar + battery projects
• Energy Program Design: including assessment of potential real-time market, day ahead market, and resource adequacy savings results from implementing a virtual power plant including distributed solar + storage resources, identification of target customers, and program framework suggestions
• Energy Program Deployment & Implementation Support: including development of RFP & contracts, procurement administration, contract negotiations, managing vendor performance and program performance reporting, overseeing customer engagement Having completed the program feasibility assessment, PRIME & TerraVerde are engaging customers and preparing for a 2022 RFP for the solar + battery project.

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 14 Client Peninsula Clean Energy
Project Name Distributed Resource Adequacy Program
Project Description Customer program deploying residential behind-the-meter solar + battery projects that provide savings & backup power for customers and RA for PCE Project Owner Sunrun
Project Partners Sunrun (owner, installer)
Location San Mateo County
Project Time Frame November 2019 – Present
Client Contact Peter Levitt
Associate Manager of DERs
Peninsula Clean Energy
[email protected] | (650) 381-9233
In November of 2019, Peninsula Clean Energy (PCE), in a joint effort with other San Francisco Bay Area Load Serving Entities, released a Request for Proposals (RFP) for Distributed Resource Adequacy (RA) Capacity. This program is designed to incentivize the deployment of Distributed Energy Resources in order to increase community resiliency while providing RA to the Load Serving Entities. TerraVerde Energy was engaged to support PCE with solicitation management, vendor negotiations & selection, target customer identification, and ongoing program management services.

For this project, TerraVerde’s scope included:
• Solicitation Support: including evaluating & providing guidance regarding responses, support shortlisting & interviews, presentation of findings & suggestions, support with contract negotiations & board presentations.
• Target Customer Identification: including data collection (customer load data, PSPS event counts, EV ownership data, SGIP eligibility), customer clustering analyses to identify customer segments, and presentation of target customer lists
• Program Administration: including vendor performance & compliance management, program data room development & management, review of vendor submittals to validate compliance, administration of weekly standing vendor meetings, review of vendor monthly reporting, development, and presentation of on-going program performance reporting • Customer Experience Research: including development and administration of a digital feedback platform, facilitation of virtual focus Group / interview meetings, providing guidance based on findings

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 15 • CRM Integration Management Between CCA & Program Vendors: including development of integration specifications, development of the data transfer protocol, oversight & validation of integration activities
TerraVerde has completed the solicitation and target customer identification scope elements. Program administration (oversight of Sunrun), customer experience research, and CRM integration activities are underway. To date 4,147 kWh of battery energy storage systems have been deployed under the program.

Client Eastern Municipal Water District
Project Name Solar PV & battery energy storage projects Project Description Multiple phases of projects including NEM, RES-BCT, & SGIP projects Project Owner Tesla
Project Partners Tesla (owner, installer)
Location Riverside County
Project Time Frame 2016 – Present
Client Contact Sam Robinson
Energy Manager
Eastern Municipal Water District
[email protected] | (951) 928-3777 x4853
Multi-phase Solar PV and battery storage projects starting with comprehensive District-wide feasibility assessments that led to the identification of 15.91 MWs of solar PV projects across 5 sites (10.44 MWs NEM

2.0 projects at 4 sites and 5.47 MW RES-BCT project at 1 site), and 6 battery storage / microgrid projects .

In addition to multiple phases of consulting and owner’s rep services for the Solar PV and Battery/Microgrid projects, EMWD has retained TerraVerde to develop, implement, and manage a REC (Renewable Energy Certificates) Management Program for the District’s existing 6 MWs of district-owned solar PV, including WREGIS certification, market quotes, sales strategies, brokering, and sales consummation & reporting.

For this project, TerraVerde’s scope included:
• Feasibility Assessment: District-wide feasibility assessment (274 SCE meters), which included the District’s main recycled water treatment plant sites and other operations with large electrical loads.

The study included calculating the baseline energy production profile of the District’s existing NEM

1.0 solar PV systems (6MWdc at 6 sites installed in 2016), plus fuel cells (1.5MWs at 2 sites) and

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 16 micro-turbines (350kW at 1 site). TerraVerde also performed in-depth rate analysis, demand & billing analysis, historical performance assessment for the District’s existing solar PV systems, site due diligence, 12kV electrical infrastructure evaluation, and managed all 5 SCE Rule 21 interconnection applications from creation/submittal to executed GIA’s, which included numerous meetings with SCE over a 2yr period.
• Project Development Services: TerraVerde provided RFP development and administration/management services, and assisted the District in shortlist interviews, value engineering and final selection of a PPA Provider. TerraVerde also managed PPA contract negotiation and execution, participation in the CEQA/EIA study process, GIA negotiations with SCE, Gov code 4217 resolution process, separate Civil engineering & construction contracts for complex site prep scopes, and Board presentations. TerraVerde was able to gain TOU period grandfathering for the NEM 2.0 projects and the RES-BCT project through advising and acting expeditiously to submit Interconnection applications to SCE prior to the application deadline. The TOU period grandfathering will remain in place until July 2027 and add additional net savings benefit to the savings projections. TerraVerde was also successful in securing a one-time RES-BCT Indifference Payment from SCE valued at $781,000, which will be paid to the District at the 1yr anniversary of the RES-BCT project operations as a lump sum payment (TerraVerde was also successful in securing RES-BCT indifference payments from SCE for three other water agency clients, ranging from $900,000 to $2,150,000 through a CPUC proceeding attached to SCE’s 2017 General Rate Case).
• Project Implementation Management Services: TerraVerde is also providing turnkey owner’s rep construction management services, including oversight of design/engineering review & approvals, permitting requirements, RFI and contractor submittals review/approval, PPA contract compliance & amendments processing, site preparations (civil construction), interconnection & Utility upgrades, construction & equipment installations, commissioning management and performance verification, and project closeout.
• Battery Energy Storage/Resiliency Project Development Services: TerraVerde was retained by EMWD to conduct a comprehensive District-wide battery energy storage/microgrid feasibility assessment. This consulting effort included an expedited RFP process run by TerraVerde on behalf of the District, which facilitated submitting SGIP applications for 36 battery storage projects for SGIP Equity incentives. This work was followed by development of a 2nd battery storage RFP for the remaining 10 projects, and assistance with running the RFP process and vendor selection.

TerraVerde is also assisting the District with proposal evaluations, vendor interviews, vendor selection, contract negotiations, SGIP application submittals, and project management services to oversee implementation of District selected battery storage/microgrid projects. • Asset Management Services: TerraVerde currently has an administrative services contract to manage and broker/sell the Renewable Energy Certificates (RECs) produced by the District’s existing 6MW NEM systems.

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 17

EXPERIENCE WITH RELEVANT STAKEHOLDERS
Having successfully deployed over $500 million worth of distributed solar PV & battery energy storage systems on behalf of our clients, TerraVerde Energy has a proven track record of working with the broad array of stakeholders necessary to ensure project success including:
• Client Staff & Oversight Committees (including extensive experience working with public sector clients, their Boards and Councils)
• CCA Customers (providing education and outreach services to public, enterprise, and small business customers)
• Electric Utilities (through the data collection, interconnection application, and project permitting processes)
• Solar & Battery Installers and Constructions Companies (including extensive experience with both leading national and local companies)
• City and County Permitting Offices and Authorities Having Jurisdiction (through the project permitting, and inspection processes)
• CEQA (through the environmental permitting process)
• DSA (where required)
• CEC (having interfaced heavily through several grant projects we have led and / or participated in)

SPECIALIZED EXPERIENCE & PROFESSIONAL COMPETENCE
As highlighted in the Project Approach Section of this proposal, TerraVerde has unique expertise and tools that enable us to understand the values that DERs can generate on both sides of the meter. Having deployed over 150 megawatts of projects, our track record speaks to our competence in the successful development and implementation of these projects and programs. In addition to this expertise, we have developed our own software and tools (including SolarShadow featured on page 27 of this proposal) which enable us to efficiently identify opportunities, model project outcomes, transparently share financial projections with project stakeholders, and manage both the energy and financial performance of these resources in their operational phase.

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 18

PROJECT APPROACH

1.1 GW OF NEW DISTRIBUTED SOLAR IS INSTALLED IN CALIFORNIA EACH YEAR

Electricity customers in California’s Investor-Owned Utility markets have installed an average of 1.1 GW of new behind-the-meter solar PV systems each year. Customer needs for resiliency and clean energy will continue to drive solar plus battery adoption.

These market conditions present both a problem
and an opportunity for CCAs.

The Problem
The continued deployment of solar + battery
systems in California reduces CCA retail electricity
sales revenue.

The Opportunity
The customer desire for resiliency presents an
opportunity to deploy an innovative program that
positions CCAs as a beneficiary of solar + battery
projects.

THE DISTRIBUTED PPA PROGRAM
To mitigate the revenue losses to CCAs, TerraVerde has developed a Distributed PPA program that enables CCAs to partner with customers in deploying distributed solar plus battery energy storage systems.

In this program, CCAs are positioned as a beneficiary of the DER projects, overcoming the revenue loss challenge, and creating additional financial opportunities. Under this program framework, the CCA engages target customers with a cost savings and energy resiliency offering in the form of a solar + battery power purchase agreement. Upon securing Letters of Interest from a cohort of customers, the CCA, then procures a Distributed Solar + Battery PPA from developers for projects sited at these customer locations.

Based on the pricing received from the market, the CCA then offers the electricity generated from the deployed solar PV systems to their cohort of customers at a rate that is higher than the Distributed PPA rate but lower than the customer's standard (or otherwise applicable) rates thus:
• Lowering customer costs & providing backup power benefits • Generating a new revenue source for the CCA
• Overcoming the revenue loss challenge posed by the behind-the-meter generation • Developing a DER portfolio that generates significant procurement cost savings for the CCA • Building a long-term relationship between CCAs and their customers Capacity of Distributed Solar
installed in California’s IOU markets

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 19

TYPICAL PROGRAM STRUCTURES

THE DISTRIBUTED PPA PROGRAM
savings & resiliency
VENDOR

CUSTOMER CCA
PPA payments
DER services
Program payments
technical support / incentives
Co-marketing
savings & resiliency
CCA

CUSTOMER VENDOR
PPA payments
Customer acquisition savings
Distributed PPA Payments
DER installation & operation
The vendor is in the middle,
effectively earning what was previously
the retail electricity revenue of the CCA
Under the Distributed PPA Program,
the CCA is in the middle, driving value
for everyone involved.

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 20

THE DISTRIBUTED PPA PROGRAM DEVELOPMENT CYCLE

A CASE STUDY
A case study of the Distributed PPA program, modeling the impacts of deploying solar + storage systems at 175 commercial customers overcomes what would otherwise be a $62 million revenue loss, and provides the CCA with a net benefit of $68 million dollars.
• Customers: 175 Commercial Customers
• DERs: Solar + Battery Storage
• DER Operation: charge battery from solar exports, discharge against CCA’s evening peak load • Customer Benefits: energy cost savings & resiliency
• CCA Benefit: reduced RA obligation, reduced day-ahead purchases, REC purchase savings, and PPA net revenue
Commercial Solar + Battery Program Impacts Over 20 Years Electricity Sales Revenue Impact ($61.6 million)
Procurement Cost Savings $11.1 million
RA Obligation Reduction Savings $8.5 million
Avoided REC Purchases $11.3 million
Distributed PPA Net Revenue $99 million
Program Net Benefit $68.3 million
See the attached Sample Distributed PPA Program Pro Forma for further details Identify target customers and determine program feasibility Engage customers with program offer and secure letters of interest Procure Distributed PPA through a competitive solicitation CCA executes PPA with customers CCA executes Distributed PPA with vendor

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 21 CUSTOMERS & CCAs BOTH EARN BENEFITS
The following financials from the case study show that customers & CCAs both earn benefits under this Distributed PPA Program. The CCA charges the customer a PPA rate that is lower than the customer’s gross bill savings, but at a rate higher than what the CCA is paying to the vendor, thus generating both customer net savings, and CCA net revenue.

Additionally, this program enables CCAs to lock in a fixed margin on their electricity sales to these customers. Given the variability of wholesale procurement costs (i.e., Cost of Service), CCAs carry profitability risk on retail electricity sales. Under the Distributed PPA program, contract pricing & structure assures CCAs have a fixed margin on electricity sold through the program.

Customer Gross Bill Savings
$21,317,251.77 ($0.31 / kWh of solar production)
Year-1 Program Financials
Customer PPA Payments to CCA
$19,452,667.02 ($0.28 / kWh)
Customer Net Savings
$1,864,584.75 ($0.03 / kWh)
CCA PPA Payment to Vendor
$17,748,606.87 ($0.26 / kWh)
CCA Net Revenue
$1,704,060.15 ($0.02 / kWh)
Profit
(varies)
Cost of Service
(varies)
Revenue From
Retail Customer
Standard Retail Electricity Sales
Profit
(fixed)
Cost of Service
(fixed)
Revenue From
Distributed PPA
Customer
Distributed PPA Electricity Sales

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 22

EXAMPLE CUSTOMER OFFERING
Desert Community Energy (DCE), your locally run power provider, is launching a pilot program, partnering with select customers on solar PV & battery energy storage projects. For interested customers, DCE will:
• Evaluate your cost savings & backup power opportunities from installing a solar + battery system • Negotiate project agreements with qualified vendors on your behalf • Bring you a no-money-down program agreement for the financing and installation of the new solar + battery system
These resources will provide you with energy cost savings, as well as backup power during grid outages.

THE DCE PROGRAM ADVANTAGE
The Right Projects | DCE will provide the technical assistance and due diligence necessary to ensure that the specifications of your solar and battery systems are optimized to meet the unique needs of your facility
The Best Pricing | Through this program, DCE will be taking a portfolio of pre-vetted projects to market, in a highly-competitive solicitation process which has proven to deliver best value from the market Your Local Provider | As your locally run power provider, DCE will ensure that your projects deliver on their pre-deployment expectations over the 25-year life of these energy resources

THE TIME IS NOW
Join the DCE program today while incentives are the richest and utility programs provide the strongest cost savings value.

California’s Rich Battery Incentive is Moving Quickly | The SGIP program provides a rebate for battery energy storage projects. Incentives cover approximately 30% of the cost of the battery. Funding for this program is expected to be fully subscribed by early 2022 The Federal Tax Credit is Dropping in Value Soon | This incentive currently provides a tax credit of 26% of the project costs, but will begin stepping down in value annually, starting at the end of next year.

Net Energy Metering is Changing | Proceedings are underway at the CPUC considering a new Net Energy Metering tariff which is expected to reduce the financial benefits of new energy projects.

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 23

PROGRAM MILESTONES FROM CUSTOMER PERSPECTIVE

Initial Program Presentation: TerraVerde & DCE will meet with target customers to present the program with a call to action for the customer to submit their non-binding letter of interest regarding the program
Letter of Interest: Should the customer choose to take next steps with the program offering, they will submit a non-binding Letter of Interest (LOI)
Project Technical & Financial Due Diligence: Once the LOI is submitted, TerraVerde (on behalf DCE) will collect the following information from the customer • Site specific details to inform project siting, sizing, interconnection, and resiliency strategies • Access to their SDG&E billing & usage data
• Introduction to their SDG&E representative
• For sites with existing solar: historical solar performance data, solar contracts, drawings, permission to operate notice and interconnection agreements from SDG&E Once received, TerraVerde will review these details and prepare appropriate project specifications associated cash flow pro forma for their project(s)
Findings Presentation: Once completed, TerraVerde and DCE will meet with the customer to review the findings from the technical & financial due diligence to confirm the expected project specifications and financials
Project Procurement: After reviewing the findings, should the customer choose to proceed, TerraVerde will include their project(s) in the portfolio of projects to be procured on behalf of DCE Formal Program Participation Agreement Offering: Once the procurement process is completed, and TerraVerde & DCE are able to review final pricing from the qualified vendors, TerraVerde & DCE will present the customers with a formal Program Participation Agreement for their final consideration

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 24

ANTICIPATED INCENTIVES & CONTINGENCIES
The Federal Investment Tax Credit (ITC) provides an incentive for both stand-alone solar and solar + battery projects. This incentive currently provides a tax credit of 26% of the project costs. Third-party project owners can claim this benefit and share this value with site hosts through reduced agreement payments. This incentive will soon begin stepping down in value annually at the end of 2022. Substantial enhancements to the ITC are included in the Build Back Better Reconciliation Package (which passed the House and is currently in the Senate), including and increased credit value, an extension of the credit to stand-alone batter projects, and a direct-pay option for the incentive.

California’s Self-Generation Incentive Program (SGIP) is a rebate program that provides incentives for battery energy storage systems (along with other energy technologies). Based on the location of the project and the type of facility where the project will be deployed, SGIP rebates cover between ~30-100% of the cost of the project. Given the rich incentive levels, and substantial battery project demand, funding for this incentive program is expected to be fully subscribed by early 2022. Here’s a look at the funding remaining (and recent activity we have observed) for non-residential scale battery projects in DCE’s service territory:

SGIP Funding Available In DCE’s Service Territory
SGIP Project Category Remaining Funding
as of 12.22.2021
Difference Over Past 6
Months
SCE Large-Scale Storage
& Resiliency Adder
$1.1 M ($14.8 M)
SCE Equity Resiliency $0.0 M ($36.6 M)
SoCalGas Large-Scale Storage
& Resiliency Adder $12.3 M ($2.3 M)
SoCalGas Equity Resiliency $0.0 M ($43.5 M)

Proceedings are currently underway (Rulemaking 20-08-020) for the development and implementation of new Net Energy Metering Tariff. On December 13, 2021, the CPUC released their proposed decision, which includes:
§ A New Monthly Fee (“Grid Participation Charge”) for New Residential Solar Projects – Note: non-residential solar projects would not be charged this monthly fee. § A Substantial Discount to the Value of Exported Electricity for New Projects – Instead of earning credits based on retail electricity rates, exported electricity would be valued a significantly discounted rate (based on a new Avoided Cost Calculator). Initial estimates show an 80% reduction in credit values.

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 25 § A Shortened 15-Year Grandfathering Period for Existing NEM 1.0 & NEM 2.0 Projects – In the transition from NEM 1.0 to NEM 2.0, existing NEM 1.0 customers were granted a 20 year grandfathering period. Under this proposed decision, both NEM 1.0 and NEM 2.0 projects would transition to this new NEM program 15 years from the installation date of the project. § Only a 10-Year Guarantee that the Rules of the New Program Won’t Change A final decision could be in place as early as January 27, 2022. The sunset for access to the current NEM program for new projects is expected 4 months after that final decision. Thus, interconnection applications for new projects should be submitted to utilities by May 2022 to secure the current NEM program.

In the near-term, TerraVerde intends to leverage the NEM transition, scheduled step-down in ITC incentive value, and growing scarcity of SGIP incentive funding to drive a sense of urgency in the customer engagement phase of the program. As SGIP funding is fully subscribed and / or the NEM tariff changes, TerraVerde is prepared to update our modelling to reflect these changes which will inform the continued identification of and engagement with customers who will still benefit from behind-the-meter solar + battery projects at their facilities.

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 26

PROGRAM SCALABILITY
For the initial pilot phase of the Distributed PPA program, TerraVerde encourages CCA’s to target non-residential project opportunities for new solar + battery systems. These project opportunities provide the most efficient path to securing the target 5-6 MW portfolio needed to generate economies of scale benefits in the procurement phase. This initial pilot phase will help build a platform for DCE to leverage for on-boarding other customer segments in subsequent program phases, including existing solar customers, residential customers, and smaller commercial customers. To optimize efficiencies and establish a path to deploying the Distributed PPA program at scale, TerraVerde recommends the following approach to program phasing:

Program Phase Target
Capacity
Estimated
Number of
Customers To
Enroll
Key Factors To Enable Scale
Pilot Program 5-6 MW < 10 • Target non-residential customers whose energy use profiles and rates structures indicate a high-probability of both the customer and DCE benefiting from DERs at
their locations(s)
• Target customers who have the energy use profile and
space availability to accommodate at least a project size of 500 kW
• Develop form agreements (both the PPA to be
executed between DCE and the DER Vendor, and the
Program Participation Agreement to be executed
between DCE and their customers) that are optimized to
protect DCE and DCE customer interests, while
establishing a path for DER Vendors to bring forward
the strongest pricing for the projects
Subsequent Phases 5-50 MW ~10-100 • Build on the efficiencies of the marketing materials, and form agreements (e.g., PPA and Program Participation
Agreement) developed in the pilot program
• Leverage case studies & successes from customers in
the pilot program to support customer engagement in
subsequent phases
• Build and market a dedicated web page under DCE’s
website for customer education & outreach as well as in-bound inquiries

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 27

MEASUREMENT & VERIFICATION
As outlined in the scope in the Program
Services Proposal Section, TerraVerde will
support DCE with ongoing Program
Administration & Asset Management services
over the 25-year life of these DERs. TerraVerde
approach to these services is informed by our
experience over the past 11 years of managing
a DER portfolio of nearly 400 solar PV and
battery energy storage systems on behalf of
our clients.

In support of our Asset Management Services, TerraVerde has developed a proprietary software platform called SolarShadow which connects directly to solar performance monitoring platforms, battery performance monitoring platforms, and customer electric utility meter data, to enable:
• Solar performance monitoring & issues management
• Battery performance monitoring & issues management
• Customer energy usage
• Detailed energy usage & performance reporting
• Shadow billing and financial performance monitoring & reporting Our Asset Management team maintains an
electricity rate database which forms the
basis of our energy project savings (financial)
analysis. This rate database is structured to
enable real-time updates to each billing
determinate that is a part of each applicable
utility rate schedule. For example, PG&E’s E-19 rate (a common rate schedule for medium to high energy use commercial customers),
has 62 different rate structure variables
including (among other items) transmission
charges, distribution charges, generation
charges, and demand charges. Each time an
electric utility updates their rate schedule,
SolarShadow is updated to reflect these revised rates, enabling us to provide simulated shadow bills with utility level billing accuracy.

SolarShadow connects to utility, solar, and battery meter data SolarShadow manages each billing determinate of rate schedules

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 28 EXHIBIT A – SCOPE OF SERVICES

SCOPE OF SERVICES

1. Program Design &
Feasibility Assessment
In support of DCE, TerraVerde will:

1. Evaluate a pilot distributed PPA program (5-6 MW in scale, non-residential customers) a. Collect and evaluate customer load data for non-residential customers b. Identify target customers (based in energy use profile, rate structure, project space availability)
c. Determine DER system sizing (solar PV + battery energy storage) d. Evaluate customer gross savings from solar & battery resources e. Evaluate DER portfolio impacts to DCE, including load shape impacts, procurement cost savings, Resource Adequacy obligation reduction, retail revenue impact, Renewable Energy Certificate values, and Distributed PPA program revenues
f. Determine the appropriate Distributed PPA program structure (Project PPAs & customer program agreement pricing)
g. Produce a cash flow pro forma for the program

2. Present findings

2. Program Development Should DCE choose to proceed to the development phase, TerraVerde will:

1. Engage target customers
a. Develop marketing materials including a program one-pager, introductory presentation deck, and template Letter of Interest
b. Coordinate with DCE staff to identify key contacts at target customers & establish warm introductions
c. Reach out directly to all target customers via email & calls d. Conduct introductory program presentations to discuss the program and request the non-binding Letter of Interest from the customers e. Follow up with customers to secure Letters of Interest from a sufficient volume of customers to meet the pilot program target of 5-6 megawatts

2. Develop program documents, in collaboration with DCE staff and legal counsel, including:
a. Program Participation Agreement* (contract between DCE & Customers) b. Request for Proposal (RFP) package
c. Power Purchase Agreement (contract between DCE & the DER Vendor)

3. Support DCE staff in presenting the completed RFP package, contracts, and customer engagement update to Board for approval to release to the RFP to the market

4. Administer the RFP process, including
a. The release of the RFP to qualified vendors
b. Facilitation of Question and Answer (Q&A) Process
c. Evaluate RFP responses and support DCE staff with vendor selection d. Support contract negotiations with vendor

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 29

5. Support DCE in presenting & negotiating the final Program Participation Agreements with customers

6. Support DCE staff in presenting Power Purchase Agreements and Program Participation Agreements to Board for approval and execution

3. Program Implementation Should DCE choose to proceed to the implementation phase, TerraVerde will:

1. Oversee the vendor in the implementation phase of the project, including:
a. Review project designs at various stages, as appropriate b. Oversee vendor’s permitting process with Authority Having Jurisdiction and interconnection application process with SDG&E
c. Oversee vendor’s submittal of incentive applications (e.g. SGIP) and response to incentive program requirements
d. Coordinate with vendor and customers to ensure smooth project scheduling e. Oversee construction of projects to ensure that projects are delivered on-time, on-budget, and within the agreed-upon scope

2. Oversee vendor’s completion of the projects including a. Receipt of Permission to Operate from SDG&E
b. Completion of project punch list items
c. Proper system commissioning

4. Program Administration
& Asset Management

1. Energy System & Provider Performance Optimization
a. Monitor System Performance: comparative analysis of actual vs. expected performance, ensure early detection & appropriate response to system issues b. Issue Management: manage and enforce warranty claims, vendor’s maintenance obligations, and performance guarantees
c. Create & Maintain a Facility Operation Plan: a data room with current, relevant, source of truth documentation for these energy systems including contracts, contacts, drawings, and utility authorizations d. Oversee & Manage Maintenance Protocols: managing vendor’s completion of warranty and corrective maintenance work
e. Track & Enforce Performance Guarantees

2. Support on-bill customer invoicing, providing the needed bill determinates to DCE’s billing services provider

3. Renewable Energy Certificate (REC) Management
a. Coordinate the establishment of Agency Reporting services with the appropriate Performance Monitoring Service Provider(s)
b. Register each of the systems as Generating Units on the WREGIS platform c. Ensure RECs are properly registered to DCE

4. Detailed Energy Performance Analysis & Financial Reporting a. Quarterly analysis & reporting of

1. Actual vs. weather adjusted expected solar energy production

2. Actual vs. expected battery performance

3. Actual vs. expected energy usage

4. Issues and actions throughout the portfolio

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 30 b. Annual analysis & reporting of

1. Actual vs. expected financial performance (revenue, savings, expenses, net benefit)

2. Actual vs. weather adjusted expected solar energy production

3. Actual vs. expected battery performance

4. Actual vs. expected energy usage

5. Issues and actions throughout the portfolio

6. Performance guarantee accounting

DATA NEEDED FROM DCE
Data Category Data Specifics
Ideal Timeline for
Receiving Data
Customer Load Data SDG&E customer specific information for all non-residential customers, including: previous 12 months interval meter data, account number, rate schedule
Within 30 days of
being engaged by
DCE
CCA Load & Procurement
Cost Data
Scheduled Load (MW) Within 30 days of
being engaged by
DCE
Actual Load (MW)
Imbalance Load (MW)
Day Ahead Market Price ($/MW)
Resource Adequacy Cost ($/kW-month)
EXHIBIT B – COST PROPOSAL & PROGRAM SCHEDULE

COST PROPOSAL
Scope Item Amount Due

1. Program Design &
Feasibility Assessment No Charge

2. Program
Development No Charge

3. Program Implementation Development Fee:
6% of Total Project Cost1
• 50% of the Development Fee shall be due upon
the DCE’s execution of the vendor contract
TERRAVERDE’S RISK-FREE PROGRAM DEVELOPMENT MODEL
Under this unique program development structure, TerraVerde provides program design, procurement planning, customer engagement and solicitation administration services at no cost, and is only compensated when DCE decides whether to proceed with the program.

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 31 • 20% of the Development Fee shall be due upon
the DCE’s issuance of notice to the vendor to
proceed with construction2
• 20% of the Development Fee shall be due upon
the receipt of Permission to Operate from
Utility2
• 10% of the Development Fee shall be due upon
the DCE’s execution of the project completion
form2

4. Program Administration
& Asset Management
Annual Fee as described in the
following column
Program Administration & Asset Management Services will be invoiced annually based on the following:
• Annual Fee for Year 1 shall be equivalent to
$0.01 / kWh based on the estimated solar PV
production
• This fee shall increase annually by 3.5%
• This fee shall be due upon initiation of Program
Administration & Asset Management Services
and annually thereafter2
1 Total Project Cost: all costs and expenses incurred by DCE (and its counterparties in a Power Purchase Agreement) in designing, developing, purchasing, constructing, installing, and permitting Distributed Energy Resources. 2 Invoices for these fees may be invoiced on a pro rata basis as portions of the projects reach these milestones

PROGRAM SCHEDULE

Phase Duration
Start
(month number)
End
(month number)
Initial Feasibility Assessment 2 months 1 2
Concurrent:
• Customer Engagement
• Project Due Diligence
• RFP Development
3 months 3 5
Procurement (RFP) and Contract Negotiations 3 months 6 8 Project Design & Permitting 3 months 9 11
Project Construction 12 months 12 24

Note: This schedule represents the target time-line for developing this program. However, given that the actual timeline will be dependent upon several variables outside the control of TerraVerde & DCE, this target-timeline is a tentative schedule.

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 32

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 33 EXHIBIT C – COMPENSATION BILLING RATES
As outlined in this proposal, TerraVerde is proposing to engage under our under our unique Risk-Free Project Development Model, through which TerraVerde provides technical & financial due diligence, RFP development & administration services, and contract negotiation support services at-risk, and is only compensated when DCE approves projects for implementation. As such, our proposed fees would be based on a percentage of the Total Project Cost and scale of the DER portfolio.

For reference, the proposed initial 5-6 MW pilot would have an estimated total project cost of roughly $15,000,000. Thus, TerraVerde's Development Fee (at 6%) would be roughly $900,000. Reminder:

TerraVerde only earns this after we have
• Found a feasible program
• Engaged & secured letters of interest from customers
• Completed technical and financial due diligence on each of the projects • Administered the procurement for the projects
• Negotiated the contracts with both the vendors and the customers • And DCE has decided to proceed with the program
This Development fee also compensates TerraVerde for managing these projects through the pre-construction, construction, and commissioning phases, including: overseeing the vendor's design, permitting, and utility interconnection processes, managing construction to ensure projects are delivered on-time, on-budget, and within the agreed upon scope, and ensuring the systems are properly commissioned.

TerraVerde's Program Administration fee is $0.01 / kWh based on the estimated solar PV production.

Assuming an average of 1500 kWh / kWp, this fee would be roughly $82,500 and compensates TerraVerde for:
• Daily performance monitoring of the systems
• Managing the vendor's compliance with maintenance, warranty, and performance guarantee requirements
• Providing the monthly billing determinants to DCE’s billing services provider to facilitate on-bill customer invoicing of the Program Participation Fee
• Providing quarterly and annual reporting of actual vs. expected performance (including both energy and financial reporting)
• Management of the Renewable Energy Certificates associated with the portfolio

David Burdick | Executive Vice President | 415.272.1014 | [email protected] 34 EXHIBIT D – EXAMPLE PRO FORMA
Distributed PPA Program
Example Pro Forma
Confidential

Dashboard

DASHBOARD
Distributed PPA Program Analysis
Customer Information Costs & Escalator Assumptions
Energy Storage System Sizes 232 kWh Retail Electricity Costs Escalator 3% Customers on rate schedule TOU-8 8 Wholesale Electricity Costs Escalator 2% Customers on rate schedule TOU-GS-1 1 Resource Adequacy Starting Costs $/kW $6 Customers on rate schedule TOU-GS-2 137 Resource Adequacy Costs Escalator 5% Customers on rate schedule TOU-GS-3 19 REC Cost $/MWh) $17.5 Customers on rate schedule TOU-PA-2 7 REC Cost Escalator See Disclaimer Customers on rate schedule TOU-PA-3 3
DER Specifications
Summary Solar sizing for load offset 85%
Total Number of Customers 175 Round Trip Effieciency of the Battery 85% Total Solar Resources (kW) 41,605
Total BESS Resources 10,150 kW / 40,600 kWh Customer Usage in the Scenario Total Customer Bill Impacts (20 years) $61,604,088 Total Usage Pre DER (MWh) 80,958 Total CCA Impacts (20 years) $68,310,677 Total Usage Post DER (MWh) 13,933 Total Annual Load Modification (kW) 37,056
The objective of this analysis is to reduce system peaks utilizing commercial customers, solar PV, and battery energy storage systems. This is conducted utilizing solar sizes that offset 85% of the customer load, and 4 hour commercial battery energy storage systems (BESS).

Confidential

CCA Cash Flow
CCA Impacts Potential For Incentives GHG Impacts
Index Year
Electricity
Sales Impacts ($)
Day Ahead
Impacts ($)
Resource
Adequacy
Impacts ($)
Avoided REC
Payments Net Impacts
Impacts Per
kWh
Impacts Per
Customer
GHG Impacts
(tCO2)
Day Ahead
Cost Savings
per tCO2
($/tCO2)
1 2021 ($2,292,640) $457,486 $255,686 $1,172,938 ($406,529) ($0.0061) ($2,323) (18,714) $24 2 2022 ($2,361,419) $466,636 $268,471 $1,030,864 ($595,448) ($0.0089) ($3,403) (16,447) $28 3 2023 ($2,432,261) $475,969 $281,894 $1,059,036 ($615,362) ($0.0093) ($3,516) (16,896) $28 4 2024 ($2,505,229) $485,488 $295,989 $1,087,209 ($636,544) ($0.0096) ($3,637) (17,346) $28 5 2025 ($2,580,386) $495,198 $310,788 $1,115,381 ($659,019) ($0.0100) ($3,766) (17,795) $28 6 2026 ($2,657,798) $505,102 $326,328 $1,143,553 ($682,815) ($0.0104) ($3,902) (18,245) $28 7 2027 ($2,737,532) $515,204 $342,644 $989,111 ($890,573) ($0.0137) ($5,089) (15,781) $33 8 2028 ($2,819,658) $525,508 $359,776 $834,669 ($1,099,704) ($0.0170) ($6,284) (13,317) $39 9 2029 ($2,904,247) $536,018 $377,765 $680,227 ($1,310,237) ($0.0203) ($7,487) (10,853) $49 10 2030 ($2,991,375) $546,738 $396,654 $525,786 ($1,522,197) ($0.0238) ($8,698) (8,389) $65 11 2031 ($3,081,116) $557,673 $416,486 $406,409 ($1,700,548) ($0.0267) ($9,717) (6,484) $86 12 2032 ($3,173,550) $568,826 $437,311 $314,136 ($1,853,277) ($0.0292) ($10,590) (5,012) $113 13 2033 ($3,268,756) $580,203 $459,176 $242,813 ($1,986,564) ($0.0315) ($11,352) (3,874) $150 14 2034 ($3,366,819) $591,807 $482,135 $187,684 ($2,105,193) ($0.0335) ($12,030) (2,994) $198 15 2035 ($3,467,823) $603,643 $506,242 $145,071 ($2,212,867) ($0.0354) ($12,645) (2,315) $261 16 2036 ($3,571,858) $615,716 $531,554 $112,134 ($2,312,455) ($0.0372) ($13,214) (1,789) $344 17 2037 ($3,679,014) $628,030 $558,131 $86,674 ($2,406,178) ($0.0389) ($13,750) (1,383) $454 18 2038 ($3,789,384) $640,591 $586,038 $66,995 ($2,495,760) ($0.0405) ($14,261) (1,069) $599 19 2039 ($3,903,066) $653,403 $615,340 $51,784 ($2,582,539) ($0.0422) ($14,757) (826) $791 20 2040 ($4,020,158) $666,471 $646,107 $40,027 ($2,667,553) ($0.0438) ($15,243) (639) $1,044 ($61,604,088) $11,115,709 $8,454,515 $11,292,503 ($30,741,361) ($0.0061) ($175,665) (180,166.74) $4,391 Cash Flow
Confidential

CCA Cash Flow
DER Impacts Customer Payments CCA Payments Potential For Incentives Index Year
Solar Production
(kWh)
Battery Demand
Reduction (kW)
Customer Solar
ACOE ($/kWh)
Customer Battery
Savings ($/kW)
Customer Solar
Payments to
CCA
($/kWh)
Customer
Battery
Payments to
CCA ($/kW)
Customer
Savings

CCA PPA
Payments to
Provider
($/kWh)
CCA Battery
Payments to
Provider
($/kW)
CCA
Revenues
DER Program
Costs
DER Program
Cumulative
Cashflow
1 2021 68,814,670 1,128,936 $0.07600 $14.25 $0.0722 $12.83 $1,870,434 $0.0686 $11.54 $1,696,466 ($406,529) $1,289,936 2 2022 68,470,597 1,123,291 $0.07828 $14.68 $0.0705 $13.21 $2,184,917 $0.0696 $11.72 $1,735,575 ($595,448) $2,430,063 3 2023 68,128,244 1,117,675 $0.08063 $15.12 $0.0726 $13.61 $2,239,212 $0.0707 $11.89 $2,046,290 ($615,362) $3,860,991 4 2024 67,787,602 1,112,086 $0.08305 $15.57 $0.0747 $14.02 $2,294,857 $0.0717 $12.07 $2,367,382 ($636,544) $5,591,829 5 2025 67,448,664 1,106,526 $0.08554 $16.04 $0.0770 $14.44 $2,351,884 $0.0728 $12.25 $2,699,135 ($659,019) $7,631,945 6 2026 67,111,421 1,100,993 $0.08811 $16.52 $0.0793 $14.87 $2,410,328 $0.0739 $12.44 $3,041,840 ($682,815) $9,990,970 7 2027 66,775,864 1,095,488 $0.09075 $17.02 $0.0817 $15.32 $2,470,225 $0.0750 $12.62 $3,395,798 ($890,573) $12,496,195 8 2028 66,441,985 1,090,011 $0.09347 $17.53 $0.0841 $15.78 $2,531,610 $0.0761 $12.81 $3,761,314 ($1,099,704) $15,157,805 9 2029 66,109,775 1,084,561 $0.09628 $18.05 $0.0867 $16.25 $2,594,521 $0.0773 $13.00 $4,138,704 ($1,310,237) $17,986,272 10 2030 65,779,226 1,079,138 $0.09917 $18.60 $0.0892 $16.74 $2,658,994 $0.0784 $13.20 $4,528,289 ($1,522,197) $20,992,364 11 2031 65,450,330 1,073,742 $0.10214 $19.15 $0.0919 $17.24 $2,725,070 $0.0796 $13.40 $4,930,402 ($1,700,548) $24,222,218 12 2032 65,123,078 1,068,374 $0.10521 $19.73 $0.0947 $17.75 $2,792,788 $0.0808 $13.60 $5,345,381 ($1,853,277) $27,714,323 13 2033 64,797,463 1,063,032 $0.10836 $20.32 $0.0975 $18.29 $2,862,189 $0.0820 $13.80 $5,773,576 ($1,986,564) $31,501,334 14 2034 64,473,475 1,057,717 $0.11161 $20.93 $0.1005 $18.84 $2,933,315 $0.0832 $14.01 $6,215,342 ($2,105,193) $35,611,483 15 2035 64,151,108 1,052,428 $0.11496 $21.56 $0.1035 $19.40 $3,006,207 $0.0845 $14.22 $6,671,047 ($2,212,867) $40,069,662 16 2036 63,830,352 1,047,166 $0.11841 $22.20 $0.1066 $19.98 $3,080,912 $0.0858 $14.43 $7,141,066 ($2,312,455) $44,898,273 17 2037 63,511,201 1,041,930 $0.12196 $22.87 $0.1098 $20.58 $3,157,472 $0.0870 $14.65 $7,625,784 ($2,406,178) $50,117,880 18 2038 63,193,645 1,036,720 $0.12562 $23.56 $0.1131 $21.20 $3,235,936 $0.0883 $14.87 $8,125,597 ($2,495,760) $55,747,717 19 2039 62,877,677 1,031,537 $0.12939 $24.26 $0.1165 $21.84 $3,316,349 $0.0897 $15.09 $8,640,911 ($2,582,539) $61,806,090 20 2040 62,563,288 1,026,379 $0.13327 $24.99 $0.1199 $22.49 $3,398,760 $0.0910 $15.32 $9,172,141 ($2,667,553) $68,310,677 1,312,839,664 1,026,379 $0.13327 $24.99 $0.1199 $22.49 $54,115,980 $0.0910 $15.32 $99,052,039 ($30,741,361) $68,310,677 Cash Flow
Confidential

Disclaimers
Disclaimers and Assumptions
1) The analysis assumes the Battery Energy Storage Systems (BESS) will operate on a schedule based on charging from solar production and discharging during system peak hours.
2) The analysis includes customers that use a minimum of 140,000 kWh annually, in order to warrant a solar PV system large enough to adequately charge a 232 kWh battery.
3) Day Ahead wholesale market prices are based on CAISO's Open Access Same-time Information System (OASIS), hub SP15. 4) The analysis includes commercial customers that do not currently have solar exports in any 15-min interval. 5) The analysis assumes all customers will remain on their current rate schedule after the installation of the solar PV and BESS. 6) Customer bill impacts reflected in this analysis include only those impacts to the generation portion of the customer's bill. Additional impacts such as PCIA, transmission, or distribution charges are not included. 7) The REC values are adjusted annually based on the GHG impact values.

Confidential

Pre-DER System Peaks
Hours January February March April May June July August September October November December 0 22,670 23,660 19,890 19,008 18,990 22,616 34,987 28,240 30,753 22,294 21,699 25,101 1 21,322 22,380 18,530 18,229 18,049 21,097 32,916 26,520 28,799 20,813 20,558 23,725 2 20,732 21,650 17,908 17,793 17,851 20,571 31,677 25,699 27,553 20,297 19,607 22,410 3 20,438 21,574 18,693 18,672 18,601 20,887 31,556 26,090 27,643 20,659 19,615 22,166 4 21,492 22,404 21,157 20,339 20,682 22,034 30,708 27,018 28,816 22,211 21,445 23,486 5 23,493 24,503 24,042 22,358 23,327 23,546 28,459 28,340 29,400 24,496 23,881 25,992 6 26,044 27,493 25,470 23,544 24,005 25,249 30,586 29,624 31,492 25,164 24,594 28,800 7 27,042 27,976 25,138 23,780 24,759 27,341 32,661 31,894 35,108 25,456 24,897 28,828 8 27,105 27,321 25,657 24,430 26,068 29,918 35,759 34,875 38,746 26,851 25,339 28,825 9 27,686 27,033 26,203 25,368 27,170 33,687 40,678 37,995 42,674 29,035 26,076 29,276 10 28,445 27,866 27,001 26,256 26,470 37,452 45,565 40,958 47,183 30,791 27,281 28,940 11 29,159 27,972 26,849 27,546 27,301 41,116 49,962 44,896 51,339 33,326 29,091 28,021 12 28,636 27,546 26,583 29,313 28,320 44,566 54,056 48,918 54,465 37,460 30,882 28,119 13 28,400 27,442 26,380 30,547 28,703 47,061 56,158 51,803 57,100 40,577 32,421 27,820 14 27,836 28,006 26,310 31,051 28,955 48,163 56,142 53,939 58,840 42,173 33,466 27,144 15 27,846 27,189 26,336 30,759 29,171 47,540 54,988 54,412 59,125 42,992 34,070 27,560 16 29,004 27,703 26,163 30,352 29,068 47,421 53,667 53,845 56,903 41,674 34,198 29,528 17 30,950 29,789 26,948 29,803 29,028 47,325 52,262 51,101 53,938 40,408 34,842 32,643 18 31,668 32,065 28,643 31,136 29,110 44,242 49,257 48,744 52,234 38,731 33,772 34,179 19 32,138 32,857 28,436 30,828 30,150 42,137 51,527 47,417 50,976 36,234 32,695 34,494 20 31,800 32,198 27,724 28,520 28,040 38,337 51,316 43,663 47,373 33,162 31,125 34,536 21 30,323 30,768 26,140 25,045 25,209 33,533 46,829 38,458 42,048 29,498 28,495 33,133 22 27,739 28,161 23,729 22,107 22,821 28,754 41,497 33,880 36,945 26,194 25,666 30,358 23 25,219 25,536 21,615 19,979 20,958 27,851 37,720 30,645 33,263 23,777 23,415 27,390 Pre-DER System Peaks
Confidential

Post-DER System Peaks
Hours January February March April May June July August September October November December 0 22,670 23,660 19,890 19,008 18,990 22,616 34,987 28,240 30,753 22,294 21,699 25,101 1 21,322 22,380 18,530 18,229 18,049 21,097 32,916 26,520 28,799 20,813 20,558 23,725 2 20,732 21,650 17,908 17,793 17,851 20,571 31,677 25,699 27,553 20,297 19,607 22,410 3 20,438 21,574 18,693 18,672 18,601 20,887 31,556 26,090 27,643 20,659 19,615 22,166 4 21,492 22,404 21,157 20,339 20,682 22,034 30,708 27,018 28,816 22,211 21,445 23,486 5 23,493 24,503 24,042 21,908 22,429 22,165 27,940 28,340 29,400 24,496 23,881 25,992 6 26,044 27,493 24,354 21,786 22,249 24,363 25,640 28,784 27,700 24,423 23,993 28,800 7 24,702 27,586 24,016 20,880 21,687 24,942 30,186 27,879 26,272 24,772 23,521 26,456 8 23,825 25,502 23,176 22,363 20,548 25,988 26,296 27,724 26,562 24,332 22,627 23,936 9 24,544 26,193 24,218 20,397 17,836 26,544 25,973 27,050 28,402 22,318 23,971 22,172 10 23,804 23,209 22,073 18,702 15,452 29,912 22,777 28,814 29,889 21,783 25,463 22,330 11 19,297 25,299 22,920 21,782 21,045 36,042 25,056 28,011 30,600 20,572 26,538 21,559 12 20,979 22,740 18,541 21,976 15,903 41,499 20,469 24,349 34,187 23,798 27,427 21,941 13 22,544 23,170 23,109 24,659 19,748 41,430 32,844 15,654 35,307 20,404 29,118 21,816 14 21,804 23,174 23,202 22,869 16,432 43,272 34,409 27,408 37,047 25,135 25,896 19,358 15 24,590 24,513 21,430 24,133 13,999 43,763 41,541 34,585 37,219 26,981 28,466 24,964 16 25,341 25,246 22,067 24,640 18,438 41,964 42,310 42,676 44,906 35,532 30,064 28,727 17 27,315 29,353 25,355 26,896 25,051 42,966 47,804 49,305 51,888 40,408 31,965 32,643 18 28,195 29,632 25,983 27,278 26,241 43,561 48,780 48,744 52,234 38,731 31,169 28,292 19 28,795 31,263 26,186 28,272 29,204 42,137 51,527 47,417 50,976 36,234 32,695 29,724 20 28,378 31,289 25,070 28,520 28,040 38,337 51,316 43,663 47,373 33,162 31,125 30,527 21 30,323 29,815 26,140 25,045 25,209 33,533 46,829 38,458 42,048 29,498 28,495 30,545 22 27,739 28,161 23,729 22,107 22,821 28,754 41,497 33,880 36,945 26,194 25,666 30,358 23 25,219 25,536 21,615 19,979 20,958 27,851 37,720 30,645 33,263 23,777 23,415 27,390 Post-DER System Peaks
Confidential

Clean System Power 2022
Average Thermal Emission Factor by Month-Hour (tCO2/GWh) Hours January February March April May June July August September October November December 0 392 387 404 421 407 428 371 391 371 383 370 388
1 392 386 406 422 405 429 369 389 369 381 369 389
2 392 385 406 421 406 430 365 390 369 377 370 388
3 391 379 406 422 407 429 371 388 372 380 368 386
4 388 383 407 422 409 427 378 390 372 384 365 384
5 389 387 409 422 407 432 374 389 377 388 372 382
6 393 396 410 337 333 410 359 377 381 385 380 385
7 385 403 286 280 320 545 381 387 376 390 382 382
8 196 409 272 0 243 22 384 327 384 15 221 364
9 195 0 269 0 243 22 384 328 384 15 230 384
10 199 0 270 0 243 22 384 328 384 15 232 384
11 199 0 270 0 243 22 384 328 384 15 232 384
12 199 0 270 0 243 22 384 328 381 15 232 384
13 199 0 270 0 243 22 384 327 375 15 232 384
14 196 0 270 0 240 23 384 313 374 14 232 384
15 193 0 261 0 247 24 384 326 367 396 372 377
16 402 408 283 238 246 342 359 396 380 402 392 386
17 404 399 412 425 332 425 382 400 391 398 394 399
18 406 405 420 422 407 422 394 399 396 401 397 401
19 405 403 422 432 420 436 405 401 392 400 396 400
20 403 402 412 424 408 435 401 399 389 396 394 399
21 401 399 407 421 404 422 396 394 384 389 391 396
22 396 397 406 420 406 421 390 393 383 384 386 390
23 393 392 407 422 409 424 380 393 379 371 376 385
Clean System Power 2022
Confidential

Day Ahead SP15 Market Prices 2019
Average prices for each hour of each month ($/MWh)
Hours January February March April May June July August September October November December 0 36.99 $ $ 69.97 $ 37.12 $ 23.49 $ 18.36 $ 22.86 $ 27.95 $ 28.28 $ 31.41 $ 31.84 $ 37.40 $ 36.18 1 35.64 $ $ 66.30 $ 35.06 $ 21.41 $ 16.14 $ 20.83 $ 26.17 $ 27.07 $ 30.20 $ 30.48 $ 35.84 $ 34.99 2 34.68 $ $ 63.94 $ 33.20 $ 19.82 $ 14.10 $ 19.84 $ 24.87 $ 26.08 $ 29.04 $ 29.67 $ 34.74 $ 34.20 3 35.01 $ $ 63.59 $ 32.92 $ 19.77 $ 14.01 $ 19.30 $ 24.17 $ 25.48 $ 28.60 $ 29.43 $ 35.37 $ 34.36 4 36.64 $ $ 68.88 $ 35.69 $ 22.48 $ 17.63 $ 20.75 $ 25.23 $ 26.03 $ 29.29 $ 30.66 $ 37.23 $ 35.52 5 40.46 $ $ 82.35 $ 44.37 $ 30.30 $ 25.32 $ 24.17 $ 28.16 $ 28.58 $ 32.72 $ 35.69 $ 41.90 $ 38.87 6 48.59 $ 101.05 $ $ 55.69 $ 37.66 $ 26.93 $ 23.98 $ 28.17 $ 31.04 $ 37.56 $ 43.42 $ 47.70 $ 45.59 7 47.52 $ $ 86.73 $ 48.47 $ 29.78 $ 20.00 $ 17.12 $ 22.97 $ 26.78 $ 33.61 $ 40.11 $ 40.55 $ 44.00 8 38.27 $ $ 65.85 $ 34.98 $ 17.81 $ 12.89 $ 12.31 $ 18.63 $ 20.13 $ 24.58 $ 28.68 $ 33.79 $ 38.58 9 34.16 $ $ 52.05 $ 24.33 $ 11.65 $ 11.09 9.28 $ $ 19.50 $ 20.04 $ 21.61 $ 19.66 $ 29.30 $ 35.23 10 30.26 $ $ 46.13 $ 18.36 $ 9.15 $ 11.14 6.96 $ $ 21.34 $ 22.13 $ 22.20 $ 16.90 $ 27.12 $ 32.85 11 27.80 $ $ 40.17 $ 14.41 $ 7.57 $ 12.18 5.98 $ $ 23.70 $ 24.99 $ 24.49 $ 18.32 $ 26.86 $ 30.87 12 25.74 $ $ 36.68 $ 11.55 $ 6.65 $ 14.10 5.47 $ $ 27.12 $ 27.43 $ 27.13 $ 20.05 $ 27.56 $ 30.49 13 26.60 $ $ 37.43 $ 10.20 $ 6.84 $ 16.51 5.99 $ $ 30.04 $ 30.59 $ 29.56 $ 22.31 $ 30.13 $ 30.74 14 29.36 $ $ 40.07 $ 11.37 $ 6.84 $ 18.86 6.60 $ $ 31.83 $ 32.84 $ 33.57 $ 25.37 $ 33.60 $ 33.59 15 36.40 $ $ 50.17 $ 15.57 $ 9.56 $ 21.21 8.34 $ $ 33.48 $ 35.33 $ 35.88 $ 28.93 $ 42.53 $ 39.30 16 45.93 $ $ 73.50 $ 22.49 $ 12.56 $ 22.33 8.72 $ $ 35.75 $ 38.75 $ 38.76 $ 32.09 $ 59.78 $ 47.98 17 61.31 $ $ 97.30 $ 40.64 $ 21.76 $ 15.47 $ 26.16 $ 38.61 $ 43.22 $ 51.54 $ 49.83 $ 91.65 $ 62.60 18 60.88 $ 113.70 $ $ 60.53 $ 37.54 $ 27.78 $ 35.94 $ 48.98 $ 57.71 $ 72.35 $ 75.62 $ 66.17 $ 56.45 19 54.81 $ 103.32 $ $ 72.91 $ 59.29 $ 43.37 $ 52.18 $ 69.26 $ 67.45 $ 72.34 $ 58.64 $ 55.71 $ 52.98 20 49.33 $ $ 97.92 $ 62.18 $ 53.45 $ 49.53 $ 46.32 $ 49.45 $ 47.39 $ 48.83 $ 45.39 $ 48.93 $ 48.21 21 44.14 $ $ 90.78 $ 55.21 $ 42.25 $ 36.48 $ 34.65 $ 39.87 $ 38.44 $ 41.49 $ 41.18 $ 44.70 $ 44.06 22 40.62 $ $ 79.79 $ 46.15 $ 30.50 $ 25.98 $ 26.53 $ 32.07 $ 32.38 $ 36.31 $ 37.00 $ 41.37 $ 40.57 23 37.86 $ $ 73.78 $ 40.97 $ 26.32 $ 21.06 $ 23.29 $ 29.19 $ 29.97 $ 32.86 $ 33.37 $ 38.78 $ 37.46 Day Ahead SP15 Market Prices 2019
Confidential

ITEM 6B
Desert Community Energy Board
February 14, 2022

STAFF REPORT
Subject: Resolution in Support of Rooftop Solar and Net Energy Metering Contact: David Freedman, Program Manager ([email protected]) Recommendation: Adopt Resolution 2022-02 in support of Net Energy Metering and direct staff to distribute the resolution to Governor Newsom, the region’s legislative delegation, and members of the California Public Utilities Commission Background: Customers who install small solar, wind, biogas, and fuel cell generation facilities to serve all or a portion of onsite electricity needs are eligible for the Net Energy Metering (NEM) program adopted by the California Public Utilities Commission (CPUC). NEM allows customers who generate their own energy to serve their energy needs directly onsite and to receive a financial credit on their electric bills for any surplus energy fed back to their utility. NEM is designed to support the installation of customer-sited renewable energy generation, consistent with state law calling for the continued sustainable growth of such generation. This program applies to customers served by the state’s three investor-owned utilities (IOUs): Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric. Publicly owned utilities, such as Imperial Irrigation District, have their own NEM programs and are not subject to the CPUC’s NEM rules.

The CPUC adopted the current NEM program in Decision 16-01-044 on January 28, 2016. A previous NEM program is in effect for customers who were enrolled prior to the effective date of the 2016 decision. Through the NEM program, customers receive bill credits for excess generation that is exported to the grid, offsetting energy costs. NEM customers also pay the same charges for public services as non-NEM customers.

The CPUC launched a formal proceeding to update the current NEM structure in 2020. The new rulemaking is referred to as NEM 3.0 because this is the third iteration of the NEM program. Many different proposals have been submitted to the CPUC for consideration, including a joint proposal from the IOUs (otherwise known as the IOU Proposal). Opponents of the IOU Proposal claim that it would hinder the state’s highly successful rooftop solar market, which is a key strategy in the state reaching its strong clean energy, greenhouse gas reduction, and other environmental goals.

NEM 3.0 is currently progressing through the necessary steps at the CPUC as part of the rulemaking proceeding. On December 13, 2021, the CPUC issued a proposed decision that is very similar to the IOU Proposal. While it would be premature to advocate for one particular proposal of the many submitted, a number of local cities – including the City of Desert Hot Springs and Palm Springs – have started to weigh in on the issue.

Several Community Choice Aggregation programs (CCAs) have also expressed concern on proposed changes to the NEM rules. In a letter sent to Governor Newsom in December 2021, that was also shared to the CPUC members, MCE (formerly Marin Clean Energy), the first CCA to serve customers in California and one of the largest by load, stated that it opposed any CPUC proposal that imposes a penalty fee on past or future solar and solar + storage adopters. MCE noted that it is critical that low- and middle-income customers (including homeowners and renters) as well as those living in disadvantaged communities are not discouraged from installing solar and energy storage and enrolling in NEM programs.

East Bay Community Energy and San Diego Community Power stated in their joint filing with the CPUC that the Proposed Decision’s cumulative changes to the standard tariff from currently approved tariffs goes too far, too quickly. San José Clean Energy noted in its CPUC filing that state electrification goals and laws are increasing consumer demand on the California grid, and changes to the NEM program that disincentivize adoption of customer-sited renewable distributed generation are counter-intuitive to accelerated decarbonization of the state’s power supply.

DCE staff recommends that DCE also take a broad position and is presenting Resolution 2022- 02 to mirror the positions adopted locally and by other CCAs. The resolution is general in nature but includes the following key goals and themes:
• Protecting and expanding rooftop solar via a strong succeeding NEM tariff; • Expanding clean energy access by making it easier and more affordable for people to adopt rooftop solar and energy storage to meet California's ambitious clean energy targets; and
• Deploying solar in all communities and households, particularly those struggling to pay for electricity.

These goals and themes are consistent with goals and objectives previously adopted by the DCE Board, including promoting opportunities that benefit energy consumers, reducing greenhouse gas emissions, increasing renewable energy usage, and advancing climate action and resilience.

The draft resolution includes support for the items as stated above, and urges the CPUC to:
• Strengthen NEM to expand access to all households, particularly of low and moderate income;
• Expand access to other clean energy technologies that pair with solar, such as battery storage;
• Ensure that the solar installations continue to grow to meet climate goals set by the state and by DCE; and
• Exclude provisions in the IOU Proposal such as imposing high monthly fixed fees and reducing or eliminating credits for sharing electricity with the power grid.

While the IOU Proposal and the solar and environmental advocates’ plan are largely in opposition, a consensus is emerging that a fair and effective rooftop solar policy must provide benefits and opportunities for low-income and disadvantaged communities that have previously been left out.

One of the participants in the NEM 3.0 proceeding seeking to protect access to customer-sited clean energy among low-income customers is GRID Alternatives, which has installed solar panels on housing for low-income residents across the Coachella Valley, including in Palm Desert and Palm Springs, while providing workforce education and training in connection with these installations. Several advocates have also been building support through letters and columns printed in The Desert Sun. Additionally, a similar resolution is being presented to the CVAG Energy and Environmental Resources Committee when it meets on February 10 for recommended adoption by the CVAG Executive Committee when it meets on February 28.

Fiscal Analysis: There is no cost to DCE for adopting this resolution. Following the CPUC’s adoption of the NEM 3.0 Final Decision, which is expected to occur as soon as April, staff will present an analysis of its financial impact on DCE and DCE’s NEM customers. As of January 24, 2022, DCE had 4,372 customers enrolled in NEM, of which 4,270 customers were residential and the remaining 102 were non-residential accounts.

Attachment: Resolution 2022-02
RESOLUTION NO. 2022-02

A RESOLUTION OF THE BOARD OF DIRECTORS

OF DESERT COMMUNITY ENERGY

IN SUPPORT OF NET ENERGY METERING
WHEREAS, Net Energy Metering (NEM) is designed to support the installation of customer-sited renewable energy generation; and
WHEREAS, NEM allows customers to receive bill credits for power generated by their solar system and shared with the power grid and ultimately save money on their utility bills; and WHEREAS, NEM is what has allowed solar to become increasingly accessible to low- and moderate-income households; and
WHEREAS, the California Public Utilities Commission (CPUC) has launched a formal proceeding to update the current NEM structure to be introduced in 2022 as NEM 3.0, and a number of parties have submitted their proposal for what they believe NEM 3.0 should look like; and
WHEREAS, the California Investor Owned Utilities (IOUs), Pacific Gas and Electric, San Diego Gas & Electric and Southern California Edison, have submitted a joint proposal (the “IOU Proposal”) that calls for drastic changes to NEM that would make customer-sited renewable energy more expensive, increase the amount of time it takes for customers to pay off their systems, and grind to a halt the installation of distributed solar in California; and WHEREAS, the IOU Proposal would make it impossible for customer-sited renewables to continue to grow sustainably as mandated by law as a result of high monthly fixed fees for all solar installations, and slashing credits customers receive for sharing their excess electricity with the power grid; and
WHEREAS, proposals submitted to CPUC by GRID Alternatives, Protect Our Communities Foundation, Vote Solar, California Solar & Storage Association, Solar Energy Industries Association, and others not only would encourage new solar adoption but also include additional subsidies for low-income customers; and
WHEREAS, California cannot meet its clean energy targets in time with utility-scale solar alone and needs to triple the amount of rooftop solar, as reported by the California Energy Commission’s 2021 SB 100 Joint Agency Report Summary; and WHEREAS, protecting rooftop solar and expanding access to rooftop solar in communities of concern will help California as well as our own region to move toward 100 percent clean energy, lessen the impacts of the climate crisis, and reduce climate injustices from polluting energy; and WHEREAS, on December 13, 2021, the CPUC issued a Proposed Decision that is very similar to the IOU Proposal. Notable elements of it include the following:
• Credit value of excess energy saved and exported to the grid is slashed by nearly 80% • Inadequate market transition credits
• Eligibility term reduced for existing (NEM 1.0 and NEM 2.0) solar customers 2 • Dramatic increases in payback periods for rooftop solar systems; and WHEREAS, we are in a climate crisis and need to make the transition to clean energy more accessible.

NOW THEREFORE, BE IT RESOLVED that the Board of Directors of Desert Community Energy supports protecting and expanding rooftop solar via a strong succeeding NEM tariff and expanding clean energy access by making it easier, not harder, for people to adopt rooftop solar and energy storage in order to meet California's ambitious clean energy targets and deploy solar in all communities and households, particularly those struggling to pay for electricity; BE IT FURTHER RESOLVED that the Board of Directors of Desert Community Energy urges the CPUC to reject the Net Energy Metering 3.0 Proposed Decision issued on December 13, 2021, and instead to:

1. strengthen NEM to expand access to all households, particularly of low and moderate income;

2. expand access to other clean energy technologies that pair with solar, such as battery storage;

3. ensure that the solar installations continue to grow to meet the State’s and DCE member jurisdictions’ climate goals; and

4. exclude provisions in the IOU Proposal such as imposing high monthly fixed fees and reducing or eliminating credits for sharing electricity with the power grid.

BE IT FURTHER RESOLVED that copies of this Resolution shall be sent to Governor Gavin Newsom, State Senator Melissa Melendez, Assemblymembers Eduardo Garcia and Chad Mayes, and the members of the California Public Utilities Commission.

APPROVED AND ADOPTED on this 14th day of February 2022.

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________________
Geoff Kors
Chair, Desert Community Energy
ATTEST:
_________________________________
Tom Kirk
Secretary, Desert Community Energy
Approved as to form:
___________________________
Ryan Baron
General Counsel, Desert Community Energy
ITEM 7A DESERT COMMUNITY ENERGY BOARD
FY2021-2022 ATTENDANCE RECORD

FEB MAR APR MAY JUNE
City of Palm Desert      * 
City of Palm Springs      * 
Absent
No Meeting *
Voting Members JUL* AUG SEP OCT NOV DEC JAN
* July was a special meeting. The regular July meeting was cancelled.

Item 7C

STAFF REPORT
Subject: Update on DCE Program Activities
Contact: Elizabeth Barnwell, Management Analyst ([email protected]) Recommendation: Information
Background: DCE staff regularly provides updates to the Board about ongoing programs. The following is a recap of recent activities, and a preview of some upcoming initiatives.

Midterm Reliability Reporting: DCE, like other California load-serving entities including CCAs and Investor-Owned Utilities, is required to procure resources to meet electric system reliability needs as required by the California Public Utilities Commission’s (CPUC) and its Decision 21-06-035 from June 2021. The Mid-term Reliability procurement order is designed to achieve California’s ambitious greenhouse gas (GHG) emissions reduction targets for 2030 and to keep the state on a clear path to meeting the ultimate goal of 100 percent zero-carbon electricity resources by 2045. Eligible resources include solar, wind, geothermal and other renewable resources. The decision also states that the CPUC expects all of the resources procured pursuant to that decision to be zero-emitting, unless they otherwise qualify under renewables portfolio standard (RPS) eligibility requirements (biomass, for example). At the October 2021 meeting, the Board authorized staff to release a Request for Offers/Proposals (RFO/RFP) to meet these requirements. DCE was able to partner with other CCAs, CalChoice and Clean Energy Alliance, on a joint procurement. This collaboration is mutually beneficial for both DCE and the other CCAs, allowing for efficient use of resources and an opportunity to potentially obtain better pricing due to larger volumes. The joint procurement team issued an RFP in early January seeking projects that meet the basic requirements with a due date of February 4, 2022; The Energy Authority (TEA) is managing the procurement process on behalf of DCE. A total of 22 developers submitted proposals by the deadline. An evaluation team will review the proposals and provide a recommendation for potential contracts. The final selection of vendors and contracts will be brought back for Board approval once the selection process is complete.

OhmConnect Smart Thermostat Program: At the direction of the Board, DCE partnered with OhmConnect in late 2021 to encourage residential customers to save money on their energy bill by receiving a free smart thermostat or two-smart plugs. On December 6, 2021, the Coachella Valley Association of Governments (CVAG) Executive Committee authorized the Executive Director to enter into a similar partnership agreement with OhmConnect. Currently, staff is working on launching the second phase of the promotion which will make the offer available to customers within the CVAG region that are served by Southern California Edison (SCE). With the second phase of the promotion, which is scheduled to go live in early February 2021, both DCE and SCE customers in the Coachella Valley will have an opportunity to take advantage of the OhmConnect smart thermostat and smart plug promotion.

The DCE promotion generated 191 sign-ups for the smart device with 130 customers actually connecting the smart device to the OhmConnect application. However, DCE customers can still sign up through the CVAG-related outreach, which will be available until March 31, 2022. Additionally, OhmConnect is offering a new promotion will offer the same deal but for 99 cents. This change was Desert Community Energy Board
February 14, 2022
done to address issues related to connection rates of the smart thermostat device to the OhmConnect application. OhmConnect has found that charging 99 cents helps decrease skepticism of a “free” deal and also increases the rate of the connection of the smart device to the OhmConnect application.

Customers have 30 days from the day of receipt of the smart device to connect it to the OhmConnect application. Once connected to the OhmConnect application, they are eligible for the incentives and prizes offered by OhmConnect for saving energy.

Community Outreach & Engagement: The outreach program approved by the DCE Board in fall 2021 continues to highlight how Palm Springs residents and businesses are making a positive impact while expressing appreciation to them for going carbon free and doing their part to save the planet. Social media posts and DCE website information are building awareness that DCE is helping customers fight climate change with relatable examples. A letter to DCE customers is in the works, which also will note that the greenhouse gas emissions reduction in 2021 was the equivalent of taking 25,000 cars off the road. Outreach to local tourism organizations is planned, highlighting carbon free hotels and businesses, and touting Palm Springs as an eco-friendly destination. Another element of the outreach program focuses on outreach and appreciation for the businesses that have remained carbon free with DCE. The DCE outreach team is reaching out to other CCAs that have a business recognition program to identify best practices and hints for success.

DCE outreach also encourages customers about ways to save energy, especially during peak hours when energy is more expensive. The OhmConnect program also reinforces the energy saving message by encouraging people to avoid the peak hours of 4 to 9 pm when energy is more expensive. The “Save Money & Energy” page of the DCE website provides additional tips on energy-saving measures and ways to reduce their carbon footprint while saving money on energy bills. The online information includes links to SCE energy saving programs and rebates that DCE customers can take advantage of tips as well as additional resources which are available at:
https://desertcommunityenergy.org/save-money-energy/.

Transportation Electrification Legislation: The state Legislature is back in session and DCE staff is monitoring bills that would affect the operations of DCE. A proposed bill currently making its way through the Legislature would authorize community choice aggregators to file applications for programs and investments to accelerate widespread transportation electrification. Existing law requires that those programs proposed by investor-owned utilities seek to minimize overall costs and maximize overall benefits. The bill would extend this provision to community choice aggregators. AB 1814 would also authorize CCAs to submit applications to the CPUC to receive funding to administer transportation electrification programs in their service areas. DCE staff is monitoring this bill and will return with a recommendation if on sending a letter of support. Another goal is increased access to electric vehicles for low/moderate income communities and ensure that income-qualified Californians affected by environmental burdens see a direct benefit from the state's clean transportation investments. Staff will continue to monitor this potential bill and keep the Board apprised of its status. .

Supplier Diversity Plan and Report: DCE staff is currently working on the Annual Supplier Diversity report, which is due to the CPUC by March 1, 2022. The CPUC monitors supplier diversity in procurement by participating utilities, including CCAs, and oversees a clearinghouse of women, minority, disabled veteran, lesbian, gay, bisexual, and transgender business enterprises (WMDVLGBTBE). Last year was the first year CCAs were required to submit this report, which reflected activities promoting supplier diversity in 2020. DCE is committed to furthering equal access to economic opportunity for business enterprises owned by WMDVLGBT and other underserved or marginalized groups. DCE also continues efforts to include local and small businesses in the procurement process.

One of the goals of DCE is to keep profits in our local communities to benefit businesses and residents, including those who have suffered from economic marginalization. The 2021 report will identify DCE’s commitment to working with our existing and future suppliers on opportunities to expand institutional diversity and inclusion for WMDVLGBTBEs in 2022 and beyond. DCE staff is looking at ways to assist local diverse business that are interested in gaining certification to be listed on the state's Supplier Clearinghouse database. Opportunities to collaborate with local chambers of commerce, business networks, and others will be explored. The report will be filed by the March 1 deadline, and a summary will be provided to the DCE Board at its next meeting.

Fiscal Analysis: There is no additional cost to DCE for this informational update. Community engagement efforts and staff resources for these programs are covered under existing budgets.

Item 7D

STAFF REPORT
Subject: Southern California Edison Time-Of-Use Rate Transition Contact: Elizabeth Barnwell, Management Analyst ([email protected]) Recommendation: Information
Background: Over the last several years, Southern California Edison (SCE) has been implementing a plan to transition customers to default Time-of-Use (TOU) rates. This transition is in response to a statewide initiative from the California Public Utilities Commission (CPUC) that is intended to simplify rates, encourage conservation, increase use of clean energy to meet climate and air quality goals, and reduce stress on the electric grid. TOU is a rate plan in which the cost of electricity varies according to the time of day, season, and day type (weekday, weekend, or holiday). Higher rates are charged during the peak demand hours of 4:00 p.m. – 9:00 p.m. and lower rates are charged during off-peak demand hours. TOU rate plans are designed to encourage energy use during the day when the sun is shining and solar energy is available and electricity is least expensive. It also is meant to discourage use during the peak period when solar is not available and more polluting energy sources are used. Customers do have an option to stay with the existing tiered rate if they choose not to be part of the TOU transition. Because DCE customers are still serviced by SCE, they are included in this TOU transition.

The transition of SCE customers to TOU rates is being done in phases or waves. To mitigate customer confusion and to keep the bill and rates consistent, DCE TOU generation rates will remain consistent with SCE’s TOU delivery rates. SCE is in the process of transitioning DCE customers, who have not already been transitioned to TOU. This should occur in February and March 2022. The transition is estimated to conclude by March 2022. Recently opened accounts and large multi-accounts are planned to transition in March 2022. SCE has been updating DCE and other CCAs throughout this process, and has been sending direct mail and email notifications to customers to let them know their choices for TOU rates prior to their rate changes. Information about the TOU rates and how customers can potentially lower electricity bills is being added to the DCE website.

SCE will be providing a bill protection plan to customers as it relates to SCE delivery charges. If a customer pays more on a TOU rate plan than they would have paid on a previous tiered rate plan for the first 12 months, they will receive bill protection in the form of a one-time automatic bill credit for the difference after the first 12 months. On November 16, 2020 the DCE Board authorized a 12- month TOU bill protection plan for DCE residential customers for the generation portion of their bill.

The DCE bill protection program mirrors the SCE plan and will automatically issue a one-time credit to eligible customers after the first 12 months if those customers pay more on their TOU rate. Monthly bill protection tracking for both SCE and DCE will be provided on the customer’s bill.

Fiscal Analysis: There is no cost to DCE for this information item. The fiscal impact of the bill protection was estimated at $90,000 in 2020; a revised estimate based on actual customer participation in TOU will be incorporated into the Fiscal Year 2022/2023 Budget.

Desert Community Energy Board
February 14, 2022