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
Wednesday, June 29, 2022
3:30 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/89652524389?pwd=NGFNR3JkKzI0b2Uzb3pkV2ZsaTZxZz09 Passcode: 364638
One tap mobile:
US: +16699009128,,89652524389#
By Phone:
Dial In #: +1 669 900 9128
Webinar ID: 896 5252 4389
Passcode: 364638
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- Chair Geoff Kors, Councilmember, City of Palm Springs
2. 3.
ROLL CALL – Jennifer Nelson
A. Member Roster 4
AGENDA MODIFICATIONS (IF ANY)
4. 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.
5. BOARD MEMBER / DIRECTOR COMMENTS
6. CONSENT CALENDAR
A. Approve Minutes from Board Meeting of April 11, 2022 5 B. Reaffirm that findings still exist, pursuant to Assembly Bill 361, and 8 authorize continuation of remote teleconference/virtual meetings of Desert Community Energy
C. Adopt Resolution 2022-03, approving the 2021 Power Source Disclosure (PSD) 9 Annual Report and associated 2021 Power Content Labels for Desert Saver and Carbon Free products, and attest to their veracity
D. Authorize the Executive Director to negotiate and execute a 10-year Western 26 Systems Power Pool Resource Adequacy Confirmation with Resi Station, LLC for resource adequacy benefits from a demand response project
7. DISCUSSION / ACTION
A. DCE Fiscal Year 2022/23 Budget – Don Dame and Claude Kilgore 40 Recommendation: Adopt Resolution 2022-04 approving Desert Community Energy’s Fiscal Year 2022/23 Budget
B. First Amendment to Credit Agreement with River City Bank – David Freedman 50 Recommendation: Adopt Resolution 2022-05, approving the First Amendment to Credit Agreement with River City Bank for an increased total not to exceed $13,000,000, and authorize the Executive Director, in consultation with Legal Counsel, to take the necessary steps to finalize and execute the credit agreement amendment and related documents
C. DCE Renewable Energy Procurement and SCE’s PCIA Voluntary Allocation 63 – David Freedman
Recommendation: Approve a voluntary allocation of Southern California Edison’s Power Charge Indifference Adjustment Long-Term Renewable Energy Portfolio and authorize the Executive Director to execute the Voluntary Allocation Election Form
8. INFORMATION
A. Attendance Record 68
B. Fiscal Year 2022/2023 Meeting Calendar for DCE and the Coachella Valley 69 Association of Governments
C. Unaudited Financial Report for July 1, 2021 to April 30, 2022 70 D. Unaudited Year-to-Year Financial Report as of April 30, 2022 74 E. DCE’s 2022 Summer Readiness Outreach Strategy 76
9. 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.
10. ANNOUNCEMENTS
The next DCE meeting will be held July 18, 2022 at 3:00 p.m. via Zoom webinar.
The Coachella Valley Association of Governments’ General Assembly meeting is scheduled for June 27, 2022 at 6:00 p.m. via Zoom webinar.
11. 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 6A
Desert Community Energy Board
Meeting Minutes
April 11, 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
Joanna Stueckle
Jennifer Nelson
Janice Reitman
Kevin Broadie
Jiajing Cheng
Shannon Ayala
Jaclyn Harr
Chris Weber
Don Dame
Davis Farr
The Energy Authority
The Energy Authority
Donald Dame Consulting
3. PUBLIC COMMENTS ON AGENDA ITEMS
None.
4. BOARD MEMBER / DIRECTOR COMMENTS
Katie Barrows gave an update on the accomplishments over the last two years since DCE began serving customers in Palm Springs in April 2020.
The audio file for this meeting can be found at: http://www.desertcommunityenergy.org Desert Community Energy Board of Directors
Meeting Minutes – April 11, 2022
5. CONSENT CALENDAR
IT WAS MOVED BY MAYOR PRO TEM JONATHAN AND SECONDED BY
COUNCILMEMBER KORS TO:
A. Approve Minutes from Board Meeting of February 14, 2022 B. Reaffirm that findings still exist, pursuant to Assembly Bill 361, and authorize continuation of remote teleconference/virtual meetings of Desert Community Energy
THE MOTION CARRIED WITH 2 AYES.
Mayor Pro Tem Jonathan Aye
Councilmember Kors Aye
6. DISCUSSION / ACTION
A. DCE’s Audit for Fiscal Year 2020/21 and Related Reports – Claude Kilgore Claude Kilgore introduced Shannon Ayala from Davis Farr, who presented the results of the FY 2020/21 audit, covered future auditing standards, and recommended the DCE Board adopt a purchasing policy.
Vice Chair Jonathan recognized the finance staff for their hard work and asked that the purchasing policy recommendation be placed on a future DCE agenda.
No action was taken as this was an informational item.
B. DCE Financial Outlook and Budget Outlook – Jaclyn Harr and Claude Kilgore Ms. Harr provided a presentation on the healthy financial outlook for DCE, including information on the predicted revenue and cost changes over the next year. Mr. Kilgore gave an update on the budget outlook for Fiscal Year 2022/2023.
Vice Chair Jonathan requested information on a three-year budget at a future board meeting.
No action was taken as this was an informational item.
C. March 2022 Rate Adjustment Summary – Don Dame
Mr. Don Dame provided a brief update on the 2022 rate adjustments.
No action was taken as this was an informational item.
7. INFORMATION
The following items were included in the agenda packet for members’ information :
A. Attendance Record
B. Unaudited Financial Report for July 1, 2021 to December 31, 2021 Desert Community Energy Board of Directors
Meeting Minutes – April 11, 2022
C. Supplier Diversity Report to the CPUC
D. Community Advisory Committee Update
E. DCE Meeting Calendar for 2022
8. PUBLIC COMMENT ON NON-AGENDA ITEMS
None.
9. ANNOUNCEMENTS
The next DCE meeting is scheduled to be held May 16, 2022 at 3:00 p.m. via Zoom webinar.
Chair Kors indicated he had a conflict for the May 16th meeting. Other possible meeting dates in May were discussed, with direction to staff to confirm a date that Board members are available.
10. ADJOURNMENT – Chair Kors adjourned the meeting at 3:42 p.m.
Respectfully submitted,
Jennifer Nelson,
Executive Assistant/Clerk
ITEM 6B
a
STAFF REPORT
Subject: Remote Teleconference/Virtual Meetings Pursuant to Assembly Bill 361 Contact: Jennifer Nelson, Executive Assistant/Clerk ([email protected]) Recommendation: Reafirm 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. The Coachella Valley Association of Governments staff will also be soliciting feedback from its member jurisdictions about the use of virtual meetings. Staff anticipates conducting a survey this summer that is similar to the one conducted last year, which showed 71% of the respondents supported continuing with virtual meetings.
Fiscal Analysis: There are no additional costs to DCE for hosting virtual meetings.
Desert Community Energy Board
June 29, 2022
Item 6C
STAFF REPORT
Subject: 2021 Power Source Disclosure Report and Associated Power Content Labels Contact: Liz Barnwell, Management Analyst ([email protected]) Recommendation: Adopt Resolution 2022-03, approving the 2021 Power Source Disclosure (PSD) Annual Report and associated 2021 Power Content Labels for Desert Saver and Carbon Free products, and attest to their veracity Background: All retail sellers of electricity, including Community Choice Aggregation (CCA) energy providers such as DCE, are required by the California Public Utilities Code to disclose “accurate, reliable, and simple-to-understand information on the sources of energy” that are delivered to their customers each year. DCE started service to customers in Palm Springs in spring 2020, which was the first year DCE was required to provide this information on energy sources. Participation in the Power Source Disclosure (PSD) Program includes submitting an Annual PSD Report and associated Power Content Label (PCL) to the California Energy Commission (CEC).
The 2021 Power Source Disclosure reports for DCE’s Desert Saver and Carbon Free products (attached) were submitted to the CEC by the June 1, 2021 deadline. The reports include specific power purchases, resales, and self-consumption of energy by fuel type for each electricity product offered to DCE customers. Information from DCE’s 2021 Power Source Disclosure Annual Report is included in in Schedule 3 of the attached PSD Reports for DCE’s Carbon Free and Desert Saver products. The PCLs, shown below, will be posted on the CEC website and have already been posted to the DCE website per CEC requirements.
The CEC provides auditing and verification regulations governing the PSD Program. Retail sellers were initially required to have the PSD Annual Reports for each electricity product audited by an accredited CPA or third-party verifier. However, these regulations were modified in May 2020 to allow a public agency to have the Board attest to the veracity and approve the Annual PSD Report and PCL for each product at a public meeting.
Staff recommends that the Board adopt Resolution 2022-03 approving DCE’s 2021 PSD Annual Reports and associated Power Content Labels for the Desert Saver and Carbon Free products.
The Resolution also confirms that the Board attests to the veracity of the data in the Annual Reports. Adoption of the resolution enables DCE to comply with the CEC regulation implementing SB 1305 (California Code of Regulations, Title 20, Article 5, Sections 1390 to 1394).
Summary of Power Content Labels and Annual Report
As shown in the Schedule 3 Power Content Label, DCE provided Desert Saver customers with an energy supply including 2.1% Renewable Portfolio Standard (RPS) eligible renewable energy from solar, wind, and small hydropower facilities. DCE provided 100% carbon free energy to Carbon Free customers, including 35.8% RPS eligible renewable energy purchased from solar sources (7.4%), wind sources (18.9%), and small hydropower (9.5%). The remaining carbon free Desert Community Energy Board
June 29, 2022
energy was purchased from large hydropower sources (64.2%). The DCE 2021 PSD Annual Reports for Desert Saver and Carbon Free were prepared with assistance from The Energy Authority (TEA). TEA performed a detailed review of all power purchases completed for the 2021 calendar year. This review included an inventory of all renewable energy transfers within DCE’s Western Renewable Energy Generation Information System (WREGIS) accounts and pertinent transaction records. Based on staff’s review of available data, the information presented in the PSD Annual Reports and the Power Content Label was determined to be accurate.
Fiscal Analysis: Adoption of Resolution 2022-03 does not result in any financial impact to DCE.
Attachments:
1. Resolution 2022-03 approving 2021 Power Source Disclosure Annual Reports and associated Power Content Labels
2. 2021 Power Source Disclosure Annual Report for DCE’s Desert Saver product
3. 2021 Power Source Disclosure Annual Report for DCE’s Carbon Free product RESOLUTION NO. 2022-03
A RESOLUTION OF THE BOARD OF DIRECTORS
OF DESERT COMMUNITY ENERGY
APPROVING AND ATTESTING TO THE VERACITY OF THE 2021
POWER SOURCE DISCLOSURE ANNUAL REPORT
AND ASSOCIATED POWER CONTENT LABEL FOR THE
DESERT SAVER PRODUCT AND CARBON FREE PRODUCT
WHEREAS, Desert Community Energy (DCE) is a joint powers authority established on October 30, 2017 for the purpose of implementing community choice aggregation programs under Public Utilities Code Section 366.2.0; and
WHEREAS, Senate Bill 1305 was adopted in 1997, establishing an Electricity Generation Source Disclosure Program, (“Power Source Disclosure Program”), which requires retail suppliers of electricity to disclose to their customers each year the sources of electricity delivered to customers in the previous year, and to annually submit a Power Source Disclosure Report to the California Energy Commission.
WHEREAS, Desert Community Energy is a retail supplier of electricity as defined by the Power Source Disclosure Program (Ca. Code of Regs., Title 20, Section 1391(r)).
WHEREAS, the Power Source Disclosure Regulation was updated effective May 4, 2020 allowing the board of directors of a public agency providing electric services to approve, at a public meeting, the submission to the California Energy Commission of an attestation of the veracity of each product’s 2021 Power Source Disclosure Annual Report and 2021 Power Content Label, WHEREAS, DCE staff and consultants performed a detailed review of all power purchases completed for the 2021 calendar year; including an inventory of all renewable energy transfers within DCE’s WREGIS account, and transaction records;
WHEREAS, pursuant to the current California Energy Commission regulations, California Code of Regulations section 1394.2, the Board is required to attest to the veracity of the 2021 Power Content Labels;
WHEREAS, the Board desires to attest to the veracity of the 2021 Power Source Disclosure Annual Reports for the Desert Saver product and the Carbon Free product and to the 2021 Power Content Labels so that all the required statements and attestations required by section 1394.2 are contained in one resolution;
NOW, THEREFORE BE IT RESOLVED, the Board of Directors of Desert Community Energy does hereby resolve, determine, and order as follows:
1. Approves the submission and attests to the veracity of the attached 2021 Power Source Disclosure Annual Reports and 2021 Power Content Labels for Desert Community Energy.
ADOPTED AND APPROVED by the Board of Directors of Desert Community Energy on this 29 th
day of June 2022 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
___________________________________
Geoff Kors
Chair, Desert Community Energy
Attest:
_____________________________________
Tom Kirk
Secretary, Desert Community Energy
Version: May 2022
CONTACT INFORMATION
2021 POWER SOURCE DISCLOSURE ANNUAL REPORT
For the Year Ending December 31, 2021
RETAIL SUPPLIER NAME
Desert Community Energy
ELECTRICITY PORTFOLIO NAME
Desert Saver
Retail suppliers are required to use the posted template and are not allowed to make edits to this format. Please complete all requested information.
GENERAL INSTRUCTIONS
NAME David Freedman
TITLE DCE/I-REN Program Manager
MAILING ADDRESS 73-710 Fred Waring Drive, Suite 200
CITY, STATE, ZIP Palm Desert, CA 92260
PHONE (760) 346-1127
EMAIL [email protected]
If you have questions, contact Power Source Disclosure (PSD) staff at [email protected] or (916) 805-7439.
NOTE: Information submitted in this report is not automatically held confidential. If your company wishes the information submitted to be considered confidential an authorized representative must submit an application for confidential designation (CEC-13), which can be found on the California Energy Commissions's website at https://www.energy.ca.gov/about/divisions-and-offices/chief-counsels-office.
WEBSITE URL FOR
PCL POSTING
https://desertcommunityenergy.org/about/key-documents/
Submit the Annual Report and signed Attestation in PDF format with the Excel version of the Annual Report to [email protected]. Remember to complete the Retail Supplier Name, Electricity Portfolio Name, and contact information above, and submit separate reports and attestations for each additional portfolio if multiple were offered in the previous year.
Version: May 2022
Schedule 1: Procurements and Retail Sales
Schedule 2: Retired Unbundled RECs
Schedule 3: Annual Power Content Label Data
Schedule 1 - Procurements and Retail Sales
INTRODUCTION
Retail suppliers are required to submit separate Annual Reports for each electricity portfolio offered to California retail consumers in the previous calendar year. Enter the Retail Supplier Name and Electricity Portfolio Name at the top of Schedule 1, Schedule 2, Schedule 3, and the Attestation.
A complete Annual Report includes the following tabs:
PSD Intro
Instructions
Schedule 2 - Retired Unbundled Renewable Energy Credits (RECs) Schedule 3 - Annual Power Content Label Data
Asset-Controlling Supplier (ACS) Procurement Calculator PSD Attestation
INSTRUCTIONS
GHG Emissions Factors
Specified Purchases: A Specified Purchase refers to a transaction in which electricity is traceable to specific generating facilities by any auditable contract trail or equivalent, such as a tradable commodity system, that provides commercial verification that the electricity claimed has been sold once and only once to retail consumers. Do not enter data in the grey fields. For specified purchases, include enter following information for each line item:
Facility Name - Provide the name used to identify the facility.
Fuel Type - Provide the resource type (solar, natural gas, etc.) that this facility uses to generate electricity.
Location - Provide the state or province in which the facility is located.
Identification Numbers - Provide all applicable identification numbers from the Western Renewable Energy Generation Information System (WREGIS), the Energy Information Agency (EIA), and the California Renewables Portfolio Standard (RPS).
Gross Megawatt Hours Procured - Provide the quantity of electricity procured in MWh from the generating facility.
Megawatt Hours Resold - Provide the quantity of electricity resold at wholesale.
Unspecified Power: Unspecified Power refers to electricity that is not traceable to specific generation sources by any auditable contract trail or equivalent, or to power purchases from a transaction that expressly transferred energy only and not the RECs associated from a facility. Do not enter procurements of unspecified power. The schedule will calculate unspecified power procurements automatically.
Complete this schedule by entering information about unbundled REC retirements in the previous calendar year.
Unbundled RECs will be automatically displayed on Schedule 3 as a percentage of retail sales.
Retail suppliers of electricity must complete this schedule by entering information about all power procurements and generation that served the identified electricity portfolio covered in this filing in the prior year. The schedule is divided into sections: directly delivered renewables, firmed-and-shaped imports, specified non-renewables, and procurements from ACSs. Insert additional rows as needed to report all procurements or generation serving the subject product.
Provide the annual retail sales for the subject product in the appropriate space. At the bottom of Schedule 1, provide the retail suppliers’ other electricity end-uses that are not retail sales, such as transmission and distribution losses.
Retail suppliers shall submit a purchase agreement or ownership arrangement documentation substantiating that any eligible firmed-and-shaped product for which it is claiming an exclusion was executed prior to January 1, 2019. Any retail supplier that offered multiple electricity portfolios in the prior year must submit separate Annual Reports for each portfolio offered.
Version: May 2022
ACS Resource Mix Calculator
GHG Emissions Factors
Attestation
Retail suppliers may report specified purchases from ACS system power if the ACS provided its fuel mix of its specified system mix to the Energy Commission. Use the calculator to determine the resource-specific procurement quantities, and transfer them to Schedule 1.
This template provides the attestation that must be submitted with the Annual Report to the Energy Commission, stating that the information contained in the applicable schedules is correct and that the power has been sold once and only once to retail consumers. This attestation must be included in the package that is transmitted to the Energy Commission. Please provide the complete Annual Report in Excel format and the complete Annual Report with signed attestation in PDF format as well.
This tab will be displayed for informational purposes only; it will not be used by reporting entities, since the emissions factors below auto-populate in the relevant fields on Schedules 1 & 3.
This schedule is provided as an automated worksheet that uses the information from Schedule 1 to calculate the power content and GHG emissions intensity for each electricity portfolio. The percentages calculated on this worksheet should be used for your Power Content Label.
Version: May 2022
40,648
29,694
10,954
-
-
-
29,694
4,688
0.1153
DIRECTLY DELIVERED RENEWABLES
Facility Name Fuel Type
State or
Province WREGIS ID RPS ID N/A EIA ID
Gross MWh
Procured
MWh
Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions (in
MT CO2e) N/A
CED Lost Hills Solar, LLC - Frontier Solar Solar CA W7139 62516A 58712 175 - 175 175 - - Coachella Hills Wind CA W11291 64593A 64323 149 - 149 149 #N/A EDF Renewable Wind Farm V, Inc. - LaBrisa Wind Project Wind CA W732 64042A 54453 109 - 109 109 - - El Dorado - Montgomery Creek Hydro Eligible Hydro CA W589 60154A 55009 7 - 7 7 - - Kittitas Valley Wind Farm - Sagebrush Power Partners, LLC Wind WA W1876 60939A 56858 - - - - - - Mustang Hills, LLC - Mustang Hills, LLC Wind CA W2482 61287A 57833 124 - 124 124 - - Nine Mile HED - Nine Mile HED Eligible Hydro WA W216 60497A 3869 11 - 11 11 - - Nine Mile HED 2 - Nine Mile HED 2 Eligible Hydro WA W283 60497A 3869 60 - 60 60 - - Snow Mtn Hydro (Burney) - Burney Creek Eligible Hydro CA W673 60177A 10706 1 - 1 1 - - Snow Mtn. Hydro - Lost Creek 1 Eligible Hydro CA W670 60179A 10708 21 - 21 21 - - Snow Mtn. Hydro - Lost Creek 2 Eligible Hydro CA W671 60180A 10709 10 - 10 10 - - Tule Wind, LLC - Tule Wind, LLC Wind CA W5902 63271A 57913 62 - 62 62 - - Upper Falls HED - Upper Falls HED Eligible Hydro WA W217 60499A 9096 115 - 115 115 - - - - #N/A
FIRMED-AND-SHAPED IMPORTS
Facility Name Fuel Type
State or
Province WREGIS ID RPS ID
EIA ID of
REC
Source
EIA ID of
Substitute
Power
Gross MWh
Procured MWh Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions
(in MT CO2e)
Eligible for
Grandfathered
Emissions?
- - #N/A
- - #N/A
- - #N/A
- - #N/A
- - #N/A
SPECIFIED NON-RENEWABLE PROCUREMENTS
Facility Name Fuel Type
State or
Province N/A N/A N/A EIA ID
Gross MWh
Procured MWh Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions
(in MT CO2e) N/A
Mid-C Hydro - Priest Rapids & Wanapum Dams (Grant County PUD) Large Hydro WA 3887 9,225 - 9,225 9,225 - - Mid-C Hydro - Rocky Reach (Chelan County PUD) Large Hydro WA 3883 1,147 - 1,147 1,147 - - Mid-C Hydro - Wells (Douglas County PUD) Large Hydro WA 3886 11,560 - 11,560 11,560 - - Mid-C Hydro - Rock Island (Chelan County PUD) Large Hydro WA 6200 96 - 96 96 - - G.M. Shrum Hydroelectric Generation Facility (CAN) Large Hydro BC, Canada P206 4,608 - 4,608 4,608 - - Mica Hydroelectric Generation Facility (CAN) Large Hydro BC, Canada P210 1,103 - 1,103 1,103 - - Revelstoke Hydroelectric Generation Facility (CAN) Large Hydro BC, Canada P212 5 - 5 5 - - Lake Chelan Hydro Large Hydro WA 6424 - - - - - -
Mammoth Hydro Large Hydro CA 344 1,106 - 1,106 1,106 - - - - #N/A
PROCUREMENTS FROM ASSET-CONTROLLING SUPPLIERS
Facility Name Fuel Type N/A N/A N/A N/A EIA ID
Gross MWh
Procured MWh Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions
(in MT CO2e) N/A
- #N/A
- #N/A
- #N/A
- #N/A
END USES OTHER THAN RETAIL SALES MWh
GHG Emissions Intensity (in MT CO2e/MWh)
Net Specified Natural Gas
Net Specified Coal & Other Fossil Fuels
Net Specified Nuclear, Large Hydro, Renewables, and ACS Power GHG Emissions (excludes grandfathered emissions)
Retail Sales (MWh)
Net Specified Procurement (MWh)
Unspecified Power (MWh)
Procurement to be adjusted
2021 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 1: PROCUREMENTS AND RETAIL SALES
For the Year Ending December 31, 2021
Desert Community Energy
Desert Saver
Instructions: Enter information about power procurements underlying this electricity portfolio for which your company is filing the Annual Report.
Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto-populate as needed and should not be filled out. For EIA IDs for unspecified power or specified system mixes from asset-controlling suppliers, enter "Unspecified Power", "BPA", or "Tacoma Power" as applicable. For specified procurements of ACS power, use the ACS Procurement Calculator to calculate the resource breakdown comprising the ACS system mix. Procurements of unspecified power must not be entered as line items below; unspecified power will be calculated automatically in cell N9. Unbundled RECs must not be entered on Schedule 1; these products must be entered on Schedule 2. At the bottom portion of the schedule, provide the other electricity end-uses that are not retail sales including, but not limited to transmission and distribution losses or municipal street lighting. Amounts should be in megawatt-hours.
Version: May 2022
-
RETIRED UNBUNDLED RECS
Facility Name Fuel Type
State or
Province RPS ID Total Retired (in MWh)
Total Retired Unbundled RECs
2021 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 2: RETIRED UNBUNDLED RECS
For the Year Ending December 31, 2021
DESERT COMMUNITY ENERGY
DESERT SAVER
INSTRUCTIONS: Enter information about retired unbundled RECs associated with this electricity portfolio. Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto-populate as needed and should not be filled out.
Version: May 2022
Adjusted Net
Procured (MWh)
Percent of Total
Retail Sales
Renewable Procurements 844 2.1%
Biomass & Biowaste - 0.0%
Geothermal - 0.0%
Eligible Hydroelectric 225 0.6%
Solar 175 0.4%
Wind 444 1.1%
Coal - 0.0%
Large Hydroelectric 28,850 71.0%
Natural gas - 0.0%
Nuclear - 0.0%
Other - 0.0%
Unspecified Power 10,954 26.9%
Total 40,648 100.0%
40,648
254
0.0%
Total Retail Sales (MWh)
GHG Emissions Intensity (converted to lbs CO2e/MWh)
Percentage of Retail Sales Covered by Retired Unbundled RECs
2021 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 3: POWER CONTENT LABEL DATA
For the Year Ending December 31, 2021
DESERT COMMUNITY ENERGY
DESERT SAVER
Instructions: No data input is needed on this schedule. Retail suppliers should use these auto-populated calculations to fill out their Power Content Labels.
Version: May 2022
CONTACT INFORMATION
2021 POWER SOURCE DISCLOSURE ANNUAL REPORT
For the Year Ending December 31, 2021
RETAIL SUPPLIER NAME
Desert Community Energy
ELECTRICITY PORTFOLIO NAME
Carbon Free
Retail suppliers are required to use the posted template and are not allowed to make edits to this format. Please complete all requested information.
GENERAL INSTRUCTIONS
NAME David Freedman
TITLE DCE/I-REN Program Manager
MAILING ADDRESS 73-710 Fred Waring Drive, Suite 200
CITY, STATE, ZIP Palm Desert, CA 92260
PHONE (760) 346-1127
EMAIL [email protected]
If you have questions, contact Power Source Disclosure (PSD) staff at [email protected] or (916) 805-7439.
NOTE: Information submitted in this report is not automatically held confidential. If your company wishes the information submitted to be considered confidential an authorized representative must submit an application for confidential designation (CEC-13), which can be found on the California Energy Commissions's website at https://www.energy.ca.gov/about/divisions-and-offices/chief-counsels-office.
WEBSITE URL FOR
PCL POSTING
https://desertcommunityenergy.org/about/key-documents/
Submit the Annual Report and signed Attestation in PDF format with the Excel version of the Annual Report to [email protected]. Remember to complete the Retail Supplier Name, Electricity Portfolio Name, and contact information above, and submit separate reports and attestations for each additional portfolio if multiple were offered in the previous year.
Version: May 2022
Schedule 1: Procurements and Retail Sales
Schedule 2: Retired Unbundled RECs
Schedule 3: Annual Power Content Label Data
Schedule 1 - Procurements and Retail Sales
INTRODUCTION
Retail suppliers are required to submit separate Annual Reports for each electricity portfolio offered to California retail consumers in the previous calendar year. Enter the Retail Supplier Name and Electricity Portfolio Name at the top of Schedule 1, Schedule 2, Schedule 3, and the Attestation.
A complete Annual Report includes the following tabs:
PSD Intro
Instructions
Schedule 2 - Retired Unbundled Renewable Energy Credits (RECs) Schedule 3 - Annual Power Content Label Data
Asset-Controlling Supplier (ACS) Procurement Calculator PSD Attestation
INSTRUCTIONS
GHG Emissions Factors
Specified Purchases: A Specified Purchase refers to a transaction in which electricity is traceable to specific generating facilities by any auditable contract trail or equivalent, such as a tradable commodity system, that provides commercial verification that the electricity claimed has been sold once and only once to retail consumers. Do not enter data in the grey fields. For specified purchases, include enter following information for each line item:
Facility Name - Provide the name used to identify the facility.
Fuel Type - Provide the resource type (solar, natural gas, etc.) that this facility uses to generate electricity.
Location - Provide the state or province in which the facility is located.
Identification Numbers - Provide all applicable identification numbers from the Western Renewable Energy Generation Information System (WREGIS), the Energy Information Agency (EIA), and the California Renewables Portfolio Standard (RPS).
Gross Megawatt Hours Procured - Provide the quantity of electricity procured in MWh from the generating facility.
Megawatt Hours Resold - Provide the quantity of electricity resold at wholesale.
Unspecified Power: Unspecified Power refers to electricity that is not traceable to specific generation sources by any auditable contract trail or equivalent, or to power purchases from a transaction that expressly transferred energy only and not the RECs associated from a facility. Do not enter procurements of unspecified power. The schedule will calculate unspecified power procurements automatically.
Complete this schedule by entering information about unbundled REC retirements in the previous calendar year.
Unbundled RECs will be automatically displayed on Schedule 3 as a percentage of retail sales.
Retail suppliers of electricity must complete this schedule by entering information about all power procurements and generation that served the identified electricity portfolio covered in this filing in the prior year. The schedule is divided into sections: directly delivered renewables, firmed-and-shaped imports, specified non-renewables, and procurements from ACSs. Insert additional rows as needed to report all procurements or generation serving the subject product.
Provide the annual retail sales for the subject product in the appropriate space. At the bottom of Schedule 1, provide the retail suppliers’ other electricity end-uses that are not retail sales, such as transmission and distribution losses.
Retail suppliers shall submit a purchase agreement or ownership arrangement documentation substantiating that any eligible firmed-and-shaped product for which it is claiming an exclusion was executed prior to January 1, 2019. Any retail supplier that offered multiple electricity portfolios in the prior year must submit separate Annual Reports for each portfolio offered.
Version: May 2022
ACS Resource Mix Calculator
GHG Emissions Factors
Attestation
Retail suppliers may report specified purchases from ACS system power if the ACS provided its fuel mix of its specified system mix to the Energy Commission. Use the calculator to determine the resource-specific procurement quantities, and transfer them to Schedule 1.
This template provides the attestation that must be submitted with the Annual Report to the Energy Commission, stating that the information contained in the applicable schedules is correct and that the power has been sold once and only once to retail consumers. This attestation must be included in the package that is transmitted to the Energy Commission. Please provide the complete Annual Report in Excel format and the complete Annual Report with signed attestation in PDF format as well.
This tab will be displayed for informational purposes only; it will not be used by reporting entities, since the emissions factors below auto-populate in the relevant fields on Schedules 1 & 3.
This schedule is provided as an automated worksheet that uses the information from Schedule 1 to calculate the power content and GHG emissions intensity for each electricity portfolio. The percentages calculated on this worksheet should be used for your Power Content Label.
Version: May 2022
377,809
377,809
-
-
-
-
377,809
0 0.0000
DIRECTLY DELIVERED RENEWABLES
Facility Name Fuel Type
State or
Province WREGIS ID RPS ID N/A EIA ID
Gross MWh
Procured
MWh
Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions (in
MT CO2e) N/A
CED Lost Hills Solar, LLC - Frontier Solar Solar CA W7139 62516A 58712 28106 - 28,106 28,106 - - Coachella Hills Wind CA W11291 64593A 64323 23,951 - 23,951 23,951 #N/A EDF Renewable Wind Farm V, Inc. - LaBrisa Wind Project Wind CA W732 64042A 54453 17,515 - 17,515 17,515 - - El Dorado - Montgomery Creek Hydro Eligible Hydro CA W589 60154A 55009 1,083 - 1,083 1,083 - - Kittitas Valley Wind Farm - Sagebrush Power Partners, LLC Wind WA W1876 60939A 56858 25 - 25 25 - - Mustang Hills, LLC - Mustang Hills, LLC Wind CA W2482 61287A 57833 19,876 - 19,876 19,876 - - Nine Mile HED - Nine Mile HED Eligible Hydro WA W216 60497A 3869 1,737 - 1,737 1,737 - - Nine Mile HED 2 - Nine Mile HED 2 Eligible Hydro WA W283 60497A 3869 9,548 - 9,548 9,548 - - Snow Mtn Hydro (Burney) - Burney Creek Eligible Hydro CA W673 60177A 10706 94 - 94 94 - - Snow Mtn. Hydro - Lost Creek 1 Eligible Hydro CA W670 60179A 10708 3,355 - 3,355 3,355 - - Snow Mtn. Hydro - Lost Creek 2 Eligible Hydro CA W671 60180A 10709 1,524 - 1,524 1,524 - - Tule Wind, LLC - Tule Wind, LLC Wind CA W5902 63271A 57913 9,938 - 9,938 9,938 - - Upper Falls HED - Upper Falls HED Eligible Hydro WA W217 60499A 9096 18,504 - 18,504 18,504 - - - - #N/A
FIRMED-AND-SHAPED IMPORTS
Facility Name Fuel Type
State or
Province WREGIS ID RPS ID
EIA ID of
REC
Source
EIA ID of
Substitute
Power
Gross MWh
Procured MWh Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions
(in MT CO2e)
Eligible for
Grandfathered
Emissions?
- - #N/A
- - #N/A
- - #N/A
- - #N/A
- - #N/A
SPECIFIED NON-RENEWABLE PROCUREMENTS
Facility Name Fuel Type
State or
Province N/A N/A N/A EIA ID
Gross MWh
Procured MWh Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions
(in MT CO2e) N/A
Mid-C Hydro - Priest Rapids & Wanapum Dams (Grant County PUD) Large Hydro WA 3887 77,553 - 77,553 77,553 - - Mid-C Hydro - Rocky Reach (Chelan County PUD) Large Hydro WA 3883 9,641 - 9,641 9,641 - - Mid-C Hydro - Wells (Douglas County PUD) Large Hydro WA 3886 97,192 - 97,192 97,192 - - Mid-C Hydro - Rock Island (Chelan County PUD) Large Hydro WA 6200 803 - 803 803 - - G.M. Shrum Hydroelectric Generation Facility (CAN) Large Hydro BC, Canada P206 38,743 - 38,743 38,743 - - Mica Hydroelectric Generation Facility (CAN) Large Hydro BC, Canada P210 9,274 - 9,274 9,274 - - Revelstoke Hydroelectric Generation Facility (CAN) Large Hydro BC, Canada P212 46 - 46 46 - - Lake Chelan Hydro Large Hydro WA 6424 3 - 3 3 - -
Mammoth Hydro Large Hydro CA 344 9,298 - 9,298 9,298 - - - - #N/A
PROCUREMENTS FROM ASSET-CONTROLLING SUPPLIERS
Facility Name Fuel Type N/A N/A N/A N/A EIA ID
Gross MWh
Procured MWh Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions
(in MT CO2e) N/A
- #N/A
- #N/A
- #N/A
- #N/A
END USES OTHER THAN RETAIL SALES MWh
GHG Emissions Intensity (in MT CO2e/MWh)
Net Specified Natural Gas
Net Specified Coal & Other Fossil Fuels
Net Specified Nuclear, Large Hydro, Renewables, and ACS Power GHG Emissions (excludes grandfathered emissions)
Retail Sales (MWh)
Net Specified Procurement (MWh)
Unspecified Power (MWh)
Procurement to be adjusted
2021 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 1: PROCUREMENTS AND RETAIL SALES
For the Year Ending December 31, 2021
Desert Community Energy
Carbon Free
Instructions: Enter information about power procurements underlying this electricity portfolio for which your company is filing the Annual Report.
Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto-populate as needed and should not be filled out. For EIA IDs for unspecified power or specified system mixes from asset-controlling suppliers, enter "Unspecified Power", "BPA", or "Tacoma Power" as applicable. For specified procurements of ACS power, use the ACS Procurement Calculator to calculate the resource breakdown comprising the ACS system mix. Procurements of unspecified power must not be entered as line items below; unspecified power will be calculated automatically in cell N9. Unbundled RECs must not be entered on Schedule 1; these products must be entered on Schedule 2. At the bottom portion of the schedule, provide the other electricity end-uses that are not retail sales including, but not limited to transmission and distribution losses or municipal street lighting. Amounts should be in megawatt-hours.
Version: May 2022
-
RETIRED UNBUNDLED RECS
Facility Name Fuel Type
State or
Province RPS ID Total Retired (in MWh)
Total Retired Unbundled RECs
2021 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 2: RETIRED UNBUNDLED RECS
For the Year Ending December 31, 2021
DESERT COMMUNITY ENERGY
CARBON FREE
INSTRUCTIONS: Enter information about retired unbundled RECs associated with this electricity portfolio. Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto-populate as needed and should not be filled out.
Version: May 2022
Adjusted Net
Procured (MWh)
Percent of Total
Retail Sales
Renewable Procurements 135,256 35.8%
Biomass & Biowaste - 0.0%
Geothermal - 0.0%
Eligible Hydroelectric 35,845 9.5%
Solar 28,106 7.4%
Wind 71,305 18.9%
Coal - 0.0%
Large Hydroelectric 242,553 64.2%
Natural gas - 0.0%
Nuclear - 0.0%
Other - 0.0%
Unspecified Power - 0.0%
Total 377,809 100.0%
377,809
-
0.0%
Total Retail Sales (MWh)
GHG Emissions Intensity (converted to lbs CO2e/MWh)
Percentage of Retail Sales Covered by Retired Unbundled RECs
2021 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 3: POWER CONTENT LABEL DATA
For the Year Ending December 31, 2021
DESERT COMMUNITY ENERGY
CARBON FREE
Instructions: No data input is needed on this schedule. Retail suppliers should use these auto-populated calculations to fill out their Power Content Labels.
ITEM 6D
STAFF REPORT
Subject: DCE Mid-term Reliability Procurement: Resi Station LLC / OhmConnect Contact: David Freedman, Program Manager ([email protected]) Jaclyn Harr, The Energy Authority
Recommendation: Authorize the Executive Director to negotiate and execute a 10-year Western Systems Power Pool Resource Adequacy Confirmation with Resi Station, LLC for resource adequacy benefits from a demand response project Background: At the October 18, 2021 meeting, the DCE Board of Directors approved the release of DCE’s Mid-term Reliability Request for Proposals (RFP) to meet the needs required by California Public Utilities Commission (CPUC) Mid-term Reliability procurement order, Decision 21-06-035 from June 2021. As detailed in the staff report, this decision requires DCE, like other California load-serving entities including CCAs and Investor-Owned Utilities, to procure resources to meet electric system reliability needs. 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, battery storage, geothermal and other renewable resources, as well as demand response 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).
DCE staff worked with other CCAs on a joint procurement, rather than conducting a stand-alone solicitation. DCE’s partners are California Choice Energy Authority (CalChoice), a CCA whose members include the City of Rancho Mirage, and Clean Energy Alliance, a CCA whose members are five cities in northern San Diego County. This collaboration has been 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 has reviewed the proposals and provided a recommendation for potential contracts. The first contract now ready for Board approval is a Western Systems Power Pool (WSPP) Resource Adequacy Confirmation (Confirmation) with Resi Station LLC (Resi Station), a subsidiary of OhmConnect, for system resource adequacy (RA) benefits from an aggregated demand response project. DCE’s pro rata share of the project is 4.5 megawatts (MW) of the 15MW peak volume over a 10-year period beginning January 1, 2023. RA is a regulatory construct developed by the CPUC and the California Independent System Operator (CAISO) to ensure the state/CAISO has sufficient resources available to serve electric demand under all but the most extreme conditions. System RA helps the CAISO ensure that it has enough resources to meet monthly system peak.
Desert Community Energy Board
June 29, 2022
OhmConnect is already familiar with DCE and its customers. At the direction of the Board, DCE began partnering with OhmConnect in late 2021 on its demand response project, which encourages residential customers to save money on their energy bill by receiving a smart thermostat or two smart plugs for a nominal charge of 99 cents. OhmConnect pays residential customers to conserve power during times of peak demand, sells the collective energy savings back to the grid, and then passes their earnings onto their users in the form of cash and prizes.
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 for the CVAG areas within the Southern California Edison (SCE) service territory, including the City of Palm Desert. As of May 31, 2022, 407 DCE customers have signed up with OhmConnect, with 284 customers connecting their devices to the OhmConnect application. As of the same date, 20 CVAG-area SCE customers have signed up with OhmConnect, with all 20 customers connecting their devices to the OhmConnect application.
The RA product that OhmConnect offers in the proposed Confirmation through its Resi Station subsidiary aggregates demand response by participating customers throughout California, so it may include local customers. The proposed Confirmation is accordingly aligned with DCE’s preference in the RFP for projects located close to DCE’s service territory.
The Confirmation is governed by the master WSPP agreement, with specific terms agreed to by the parties. The Confirmation includes standard terms on contract price and quantity, Resi Station’s obligations to deliver the contracted quantities as well as the consequences should it fail to do so. DCE has the right to resell any of its contracted RA quantity should the expected delivery be in excess of DCE’s needs under the CPUC Mid-term Reliability procurement order and its general RA rules. TEA frequently conducts purchase and sale transactions of RA products for DCE consistent with DCE’s Energy Risk Management Policy adopted by the Board. This Confirmation provides additional flexibility for TEA while locking in DCE’s right to system RA at a fixed price for the 10-year term. Consistent with DCE’s load profile, higher amounts of system RA are delivered in the summer months than in the winter. The 4.5 MW peak volume to be delivered by Resi Station represents approximately 4.5% of DCE’s current peak system RA requirements.
The Confirmation will be consistent with the term sheet, which is attached with confidential pricing and other terms redacted. The Confirmation is under review by the legal counsel representing the three CCAs in the joint procurement, as well as by DCE’s legal counsel. All substantive business and legal terms have been agreed upon, and legal counsel in the joint procurement and DCE legal counsel will work with OhmConnect and TEA to finalize a few minor terms and execute this agreement in coordination with CalChoice and CEA upon DCE Board approval.
With this item, DCE staff recommends the Executive Director be authorized to finalize the Confirmation in order to meet DCE’s Mid-term Reliability obligations and reduce price volatility in DCE’s power portfolio, which will allow for increased rate certainty. The joint procurement team continues to work on other agreements, including for geothermal and battery storage resources.
Potential contracts will be brought back for Board approval once the negotiation process is complete, expected to occur later this summer.
Fiscal Analysis: The costs associated with the RFP are covered under the existing TEA contract and staff time. Under the pricing terms in the agreement, DCE will pay for the system RA generated by the project at a fixed-price rate per MWh (megawatt hour) ranging from a low point for the months of November - March throughout the contract term to a high point for September 2023. The contract currently under consideration reflects pricing that is typical in the current market for new Demand Response resources.
CPUC Decision 21-06-035 sets out annual procurement amounts for LSEs, with the first annual compliance tranche required to be online date no later than August 1, 2023. A total of four developers offered projects that were able meet this deadline. Relative to other eligible projects offered, the Resi Station was closely aligned with DCE’s procurement need for 2023 and is expected to reduce the overall costs for compliance with the decision. TEA estimates that the Resi Station project should result in cost savings of more than $1 million compared to the next most economical project offered.
Attachment: Term sheet
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Ψϯ͘ϬϬΨϯ͘ϬϬΨϯ͘ϬϬΨϯ͘ϱϬΨϰ͘ϰϭΨϰ͘ϵϬΨϳ͘ϲϴ
Ψϭϰ͘ϰϲΨϮϯ͘ϵϬ
Ψϳ͘ϮϯΨϯ͘ϬϬΨϯ͘ϬϬ
Ψϯ͘ϬϬΨϯ͘ϬϬΨϯ͘ϬϬΨϯ͘ϱϬΨϰ͘ϯϵΨϰ͘ϴϴΨϳ͘ϲϭ
Ψϭϰ͘ϭϬΨϮϯ͘ϭϵ
Ψϳ͘ϬϱΨϯ͘ϬϬΨϯ͘ϬϬ
Ψϯ͘ϬϬΨϯ͘ϬϬΨϯ͘ϬϬΨϯ͘ϱϬΨϰ͘ϯϳΨϰ͘ϴϱΨϳ͘ϱϯ
Ψϭϯ͘ϳϱΨϮϮ͘ϰϵ
Ψϲ͘ϴϳΨϯ͘ϬϬΨϯ͘ϬϬ
Ψϯ͘ϬϬΨϯ͘ϬϬΨϯ͘ϬϬΨϯ͘ϱϬΨϰ͘ϯϰΨϰ͘ϴϯΨϳ͘ϰϲ
Ψϭϯ͘ϰϬΨϮϭ͘ϴϮ
Ψϲ͘ϳϬΨϯ͘ϬϬΨϯ͘ϬϬ
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Ψϯ͘ϬϬΨϯ͘ϬϬΨϯ͘ϬϬΨϯ͘ϱϬΨϰ͘ϯϮΨϰ͘ϴϬΨϳ͘ϯϴ
Ψϭϯ͘ϬϳΨϮϭ͘ϭϲ
Ψϲ͘ϱϯΨϯ͘ϬϬΨϯ͘ϬϬ
Ψϯ͘ϬϬΨϯ͘ϬϬΨϯ͘ϬϬΨϯ͘ϱϬΨϰ͘ϯϬΨϰ͘ϳϴΨϳ͘ϯϭ
ΨϭϮ͘ϳϰΨϮϬ͘ϱϯ
Ψϲ͘ϯϳΨϯ͘ϬϬΨϯ͘ϬϬ
1 ITEM 7A
STAFF REPORT
Subject: DCE Fiscal Year 2022/23 Budget
Contact: Don Dame, DCE Energy Consultant;
Claude T. Kilgore, Director of Finance/Administration ([email protected]); Janice L. Reitman, Accounting Manager ([email protected]) Recommendation: Adopt Resolution 2022-04 approving Desert Community Energy’s Fiscal Year 2022/23 Budget
Background: By the end of June of each year, DCE staff prepares a detailed forthcoming fiscal year budget for Board review and approval. DCE's FY 2022/23 budget, covering the period from July 1, 2022 through June 30, 2023, pertains to DCE’s third full year of operation for its electricity customers in the City of Palm Springs. The budget process was previewed at the DCE Board’s April 2022 meeting. The June 2022 Board meeting provides an opportunity for further budget questions and comments, and for the Board to consider budget approval as prescribed by the DCE Joint Powers Agreement. While the format of the FY 2022/23 budget largely resembles past DCE budgets, DCE staff is working behind the scenes to allow for budget-to-actual comparisons throughout the upcoming fiscal year. In addition, DCE staff anticipates future budgets remaining the same in function with slightly different form as it moves to building out a budget book for FY 2023/24.
The proposed budget includes the current expected business outcome for FY 2022/23. Future uncertainties remain, however, including residual economic impacts from the COVID-19 pandemic, western United States’ generally poor hydro conditions, climate impacts, load variability, power market price volatility and forthcoming power purchase agreement CODs and performance. In addition to these factors, Southern California Edison’s (SCE) retail rates and the Power Charge Indifference Adjustment (PCIA, or exit fee) were adjusted effective January 1 and March 1 of this year and further revisions and regulatory actions will occur. Largely in response to these SCE changes, DCE adjusted its retail rates effective March 1, 2022. It is important to note the proposed budget is a planning document and staff will continue to coordinate with The Energy Authority (TEA) to update power supply costs, retail sales receipts, climate impacts, regulatory mandates and other factors throughout the year as actual revenues/expenses occur and more reliable projections can be made.
DCE’s FY 2022/23 budget assumptions include:
1. Accrual accounting practices are implemented so costs/revenues are booked when incurred.
2. Palm Springs is the only city where DCE is actively serving CCA customers.
3. Projected loads, resources, revenues, and costs are as detailed in TEA's June 1, 2022 financial model output.
Desert Community Energy Board
June 29, 2022
2 4. An opt-out rate of about 10 percent (those customers remaining with SCE bundled service), and an opt-down rate of about 12 percent (those DCE customers that choose Desert Saver as opposed to the 100% Carbon Free default product).
5. Board approved rate-setting objectives. The residential Desert Saver customer bill, on average, is to be about 0.5% less than SCE’s bundled base customer bill and meets full RPS compliance. DCE’s 100% Carbon Free residential product is priced, on average, not to exceed a 14% total bill premium when compared to SCE’s bundled base product.
6. DCE’s subsidy suspension for the Carbon Free energy to customers enrolled in low-income assistance programs continues, and these customers are enrolled in the Desert Saver product.
7. Rates are sufficient to recover wholesale supply costs, yield positive net margin, build cash reserves and meet applicable loan terms, conditions, and financial covenants.
8. TEA will continue to provide credit support functions to DCE during FY2022/23 with a goal to reevaluate this function moving into the FY2023/24 budget.
9. Non-energy costs were estimated with increases between 3-10% on a budget-line level to reflect budgetary conservatism in a high-inflation market.
10. Cost allocation and rate setting is based on cost recovery, fairness, and equity.
11. DCE meets regulatory, legislative, and operating requirements.
12. DCE continues ongoing collaboration with CalCCA, other CCAs and public power groups.
13. DCE maintains necessary and adequate internal staffing and continues the contract support relationship with the Coachella Valley Association of Governments (CVAG).
14. DCE will monitor and adjust forecast retail loads, revenues and costs based on actual experience and revise expectations accordingly throughout the forthcoming year.
15. DCE follows adopted Board policies and objectives.
3 The following tables summarize DCE’s expenses/revenues for the current fiscal year (through June 30, 2022) and provide DCE's budget projections for FY 2022/23. They also summarize additional forecasted projections for FY 2023/24 and FY 2024/25, which has been requested by the Board and is provided for informational purposes.
Table 1 presents a comparison between the estimated actual results for the end of FY 2021/22 compared to DCE’s originally adopted FY 2021/22 budget. This comparison is based on 10 months of actual FY 2021/22 cost data, plus a projection of the last two months of FY 2021/22.
For CVAG related facilities support, the data was provided by CVAG and included six months of actual expenditures with estimated amounts for the remainder of the fiscal year. As these amounts are estimates, they may differ from actual results.
Table 1
Customer loads were below forecast for the FY 2021/22 budget period and DCE has calibrated its model accordingly. FY 2021/22 revenues exceed budget projections by 6%, primarily reflecting DCE rate adjustments necessary to recover higher power supply costs which exceeded budget projections by 2%. The “Net Credit Fees” category for FY 2021/22 deviates significantly due to DCE’s drawing on its River City Bank revolving credit facility. In addition, before the River City Bank revolving credit facility was established, DCE was obligated to pay interest on invoiced amounts outstanding to TEA. These amounts were not budgeted in FY2021/22 and totaled approximately $66,000. Projected FY 2022/23 revenues and costs versus FY 2021/22 actuals increased approximately 33% and 8% respectively, reflecting sustained higher power market prices, recent DCE rate adjustments and targeted contributions to DCE’s financial reserves.
With regard to year-over-year cost escalation and excluding wholesale power supply charges, aggregated non-power supply costs are up about 6% for the coming budget year, below the inflation rate that’s exceeded 8% in the western U.S. during the last 12 months. In order for DCE staff to build out budget-to-actual comparisons for future reporting purposes, blanket contingency and miscellaneous expense lines have been removed from the FY 2022/23 budget as expenses were evaluated on a budget-line basis and represent anticipated increased costs. In addition, 2 Retails Sales + Other Revenue $46,356,668 $ 48,970,682 106% $65,099,508 $ 16,128,826 133% 3 Net Credit Fees $ (18,789) $ (74,462) 396% $ (70,380) $ 4,082 95% 4 Total Revenues $46,337,879 $ 48,896,220 106% $65,029,128 $ 16,132,908 133% 5 6 Power Supply Costs
7 Wholesale Power Supply $40,772,748 $ 41,569,341 102% $44,730,744 $ 3,161,402 108% 8 9 Non Power Operating Costs
10 DCE Position Support $ 455,390 $ 449,764 99% $ 652,248 $ 202,484 145% 11 Contract and Other Labor $ 126,293 $ 120,239 95% $ 129,256 $ 9,017 107% 12 CVAG Related Facilities Support $ 69,216 $ 111,824 162% $ 103,989 $ (7,835) 93% 13 Wholesale Support Svcs (TEA, Calpine, SCE, etc.) $ 1,840,267 $ 1,755,839 95% $ 1,693,006 $ (62,833) 96% 14 Retail Business Support Activities $ 30,554 $ 47,318 155% $ 50,866 $ 3,549 108% 15 Customer Programs $ 75,360 $ 26,279 35% $ 125,000 $ 98,721 476% 16 Office Supplies, Dues, Membership Expenses $ 158,856 $ 184,233 116% $ 285,579 $ 101,346 155% 17 Contingency $ 90,000 $ - na $ - $ - na
18 Total Non Power Operating Costs $ 2,845,936 $ 2,695,496 95% $ 3,039,944 $ 344,449 113% 19 20 Total Power and Operating Costs $43,618,684 $ 44,264,837 101% $47,770,688 $ 3,505,851 108% 21 22 Retail Load (MWh, net of losses) 500,447 421,724 84% 434,872 13,148 103% 1 DCE Prior Year Budget to Actuals and FY2022/23 Proposed Budget FY2022/23
Budget v.
FY2021/22
Actuals
FY2022/23
Budget as %
FY2021/22
Revenues FY2021/22
Budget
FY2021/22
Projected
Actual
FY2021/22
Act. v.
Budget %
FY2022/23
Budget
4 DCE Position Support costs are projected to increase from roughly $450,000 in FY 2021/22 to approximately $650,000 in FY 2022/23. Since its inception, DCE has been very reliant on consultants and will continue to be reliant on the expertise of TEA, Don Dame, and other external consultants; however, in line with original organization strategies, as more and more internal expertise is acquired, DCE staff would look to reduce the number of contracts with consultants.
The regulatory, customer service, policy, and programming needs of DCE continue to grow and having in-house staff resources to respond to those needs has benefits and creates efficiencies.
It is DCE staff expectation that increased personnel costs will be offset, to some degree, by reduction in the use of consultants and professional services. For example, CVAG is currently recruiting for a program assistant whose primary role will be to take on the DCE’s increased needs will take on the sometimes-tedious reporting requirements to the CPUC. This staff member, like others at CVAG, also work with CVAG’s Energy & Sustainability Department, so only their time spent on DCE is billed to DCE. It also creates unique synergies, particularly as it pertains to the new Inland Regional Energy Network (I-REN). Under the CPUC-approved business plan, I-REN has a nearly $66 million budget through 2027 and will bring in new programs that will benefit DCE’s customers. Additionally, the CVAG staff who work on I-REN also work on DCE, meaning they can work in concert with each other rather than inadvertently creating overlapping sustainability related objectives and programs.
Table 2 displays how costs in the coming fiscal year are proposed to be allocated within the budget process between DCE and Palm Springs (PS) as the only active member.
Table 2
FY 2023 Cost Allocation between DCE and Palm Springs
Costs and or revenues specific to the Palm Springs CCA operations are allocated solely to Palm Springs (Use 4). Uses 1, 2 and 3 provide a means to share costs that benefit both DCE, the Palm Springs CCA program, and the City of Palm Desert. The herein described FY 2022/23 budget assigns all costs/revenues to the active PS CCA. Staff proposes to use best reasonable judgment to fairly allocate any expenses that may be attributable to both DCE and the Palm Springs CCA, and to bring to the Board for discussion any items that may not fall within the above four categories.
Use DCE PS-CCA TOT
1 DCE 100.00% 0.00% 100.00%
2 50% active PS-CCA, 50% "DCE" 50.00% 50.00% 100.00%
3 75% active PS-CCA 25.00% 75.00% 100.00%
4 100% active PS-CCA 0.00% 100.00% 100.00%
Use 1 is DCE-wide.
Use 2 is 50% DCE-wide, 50% Active PS-CCA.
Use 3 is 75% Active PS-CCA.
Use 4 is 100% Active PS-CCA.
How Displayed
5 The following pie chart provides a high-level budget overview for FY 2022/23:
Chart 1
FY 2022/23 Accrual Budget
(The “yellow” slice reflects DCE’s internal General and Administrative costs of $1,346,939) The dark blue area represents total physical power supply costs of approximately $44.7 million, about 94% of DCE’s total operating costs. The red area represents DCE’s wholesale vendor services charges from TEA, Calpine and SCE attributable to Palm Springs CCA. The yellow slice shows the budget portion of DCE internal charges attributable to Palm Springs' CCA operations (including CVAG services and facilities utilization) of approximately $1.2 million. The green slice shows projected accrual net margins which may be available for reserves (see Chart 2, below). 6 Table 3 shows the FY 2022/23 budget summary:
Table 3
FY 2022/23 Budget Summary Detail
Table 3, Lines 2-7 show revenues and costs associated with PS CCA, as taken from the TEA financial model. Lines 10 - 18 show projected DCE non-power supply operating costs. Lines 13, 15 and 17 are assigned to PS only as a function of CCA operations. These costs include TEA and Calpine services, TEA credit fee, SCE billing charges, and programs that benefit just the customers of the City of Palm Springs. The net of credit draws, interest and fees associated with DCE’s River City Bank revolving credit agreement are shown on Line 3. FY 2022/23 total power and operating costs of $47,770,688 are approximately 8% above FY 2021/22 actuals, reflecting generally higher power market conditions due to COVID-19, poor hydro conditions, climate impacts and international energy market turmoil. Total FY 2022/23 revenue of $65,029,128 reflects recent rate adjustments necessary to recover costs, respond to SCE rate actions and contribute to Board adopted reserve accumulation goals. It is important to note the FY 2022/23 budget results are accrual based and actual revenues and available reserves will fluctuate accordingly and differ from cash-on-hand. Actual revenue receipts can lag sales by as much as two months and are about $8 million estimated on year-end FY2022/23. Line 22 in Table 3 shows an estimated net amount available for reserves of approximately $17 million; however, when adjusting for the revenue lag and considering the projected credit facility amount, actual cash on hand is estimated closer to $10 million of that amount. The same logic is true for Cumulative Net Position as identified on line 95 in Table 4.
The following Chart 2 shows DCE’s accrued margins attained during the prior fiscal year and projected for FY 2022/23, FY 2023/24 and FY 2024/25. The recent negative margins, primarily due to increasing power supply costs and revenue lag, were partially offset utilizing credit arrangements with River City Bank and invoicing support from TEA. Commencing in FY 2022/23, DCE is projecting to accumulate positive reserves which may reach reserve policy target levels during FY 2023/24, adding to DCE’s financial health and stability. DCE staff has held conversations with TEA regarding the credit support function it currently provides on behalf of DCE. While DCE is projected to be building reserves by the end of FY 2022/23, it is unlikely for DCE to be in a financial position to begin entering directly into credit agreements prior to FY 2023/24, at the earliest; therefore, to maintain a conservative approach, DCE staff is assuming Line MWh Load: 434,872
1 Revenues * FY2022/23 Avg $/Month Avg $/MW/h DCE PS CCA 2 Retail Sales + Other Revenue $ 65,099,508 $ 5,424,959 $ 149.70 4 $ - $ 65,099,508 3 Net Credit Fees $ (70,380) $ (5,865) $ (0.16) 4 $ - $ - 4 Total DCE Revenue $ 65,029,128 $ 5,419,094 $ 149.54 $ - $ 65,099,508 5 6 Power Costs * FY2022/23 Avg $/Month Avg $/MW/h
7 DCE Wholesale Power Supply $ 44,730,744 $ 3,727,562 $ 102.86 4 $ - $ 44,730,744 8 9 DCE Operating Costs FY2022/23 Avg $/Month Avg $/MW/h USE DCE PS CCA 10 DCE Position Support $ 652,248 $ 54,354 $ 1.50 4 $ - $ 652,248 11 Contract and Other Labor $ 129,256 $ 10,771 $ 0.30 4 $ - $ 129,256 12 CVAG Related facilities support $ 103,989 $ 8,666 $ 0.24 4 $ - $ 103,989 13 Wholesale Support Svcs (TEA, Calpine, SCE chgs, etc) $ 1,693,006 $ 141,084 $ 3.89 4 $ - $ 1,693,006 14 Retail Business Support Activities $ 50,866 $ 4,239 $ 0.12 4 $ - $ 50,866 15 Customer Programs $ 125,000 $ 10,417 $ 0.29 4 $ - $ 125,000 16 Outreach Services, Dues, Memberships Expenses $ 285,579 $ 23,798 $ 0.66 4 $ - $ 285,579 17 Contingency $ - $ - $ - 4 $ - $ -
18 Total non-power Operating Costs $ 3,039,945 $ 253,329 $ 6.99 $ - $ 3,039,945 19 20 Total Power and Operating Costs $ 47,770,688 $ 3,980,891 $ 109.85 $ - $ 47,770,688 21 Effective DCE / CCA Shares this FY 0.00% 100.00%
22 Estimated FY Net Rev Available for Reserves & Other $ 17,258,439 (Without beginning cash or Cr balance adjustment) * Accrual
USE
7 credit support function from TEA in FY2022/23 and will continue to reevaluate and keep the DCE Board informed.
Chart 2
Residual Margin and Reserves
Fiscal Analysis: The costs and revenues for DCE are outlined in the above and attached budget tables. The proposed budget incorporates multiple assumptions regarding CCA program participation, retail loads, wholesale supply cost, and economic impacts from the COVID-19 pandemic. Recent regulatory actions include the potential imposition of a substantial increase to DCE’s (and other CCAs’) Financial Security Requirement (“FSR”), which increase could be in the $5 million range. DCE staff is currently assessing the most prudent manner to provide these additional depository funds and the DCE budget would be impacted accordingly. Additionally, SCE will likely submit additional rate changes over the period covered by this budget. DCE staff will actively monitor and report to the Board events which may materially alter expected budget results and as warranted, bring back to the Board any proposed budget revisions deemed prudent and necessary to maintain DCE Board policies and objectives.
Attachments:
1. Table 4: FY total budget for FY2021/22, proposed budget for FY2022/23, and projected estimates for FY2023/24 and FY2024/25. Monthly detail is included for FY 2022/23.
2. Table 5: DCE internal cost totals for FY2021/22, FY2022/23, and projected estimates for FY 2023/24 and FY2024/25. Monthly detail is included for FY 2022/23.
3. Resolution No. 2022-04 approving DCE’s FY 2022/23 budget. 8 Table 4
FY 2021/22 Total Budget and Projected Year-End Actuals; FY 2022/23 Proposed Budget by Month; and Projected FY 2023/24 and FY 2024/25 Budget Totals
Table 4 includes DCE’s internal costs and expenses, which are displayed in greater detail on Table 5. Also note the budget is constructed using projected revenues and costs as accrued, and that reserve accumulation and actual cash on hand may be substantially affected by revenue receipts which can lag actual power sales by up to two months.
FY2021/22 Budget1 FY2021/22
Projected Actuals
FY2022/23
Total Jul 2022 Aug 2022 Sep 2022 Oct 2022 Nov 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 Jun 2023 Projected FY2023/24 Total
Projected
FY2024/25 Total
1 Load Particulars
2 DCE Retail Load (MWh) net of opt-outs and losses 500,447 421,724 434,872 62,338 56,344 45,989 28,129 25,656 25,306 26,023 21,220 23,803 29,262 36,635 54,167 449,358 457,941 3 DCE Wholesale Load (MWh, retail load+ losses) 529,237 444,666 458,529 65,730 59,409 48,491 29,659 27,052 26,683 27,439 22,375 25,098 30,853 38,628 57,113 473,803 482,853 4 Estimated Distribution Losses (%) 5.8% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 5 Losses (MWh) 28,790 35,156 23,657 3,391 3,065 2,502 1,530 1,396 1,377 1,416 1,154 1,295 1,592 1,993 2,947 24,445 24,912 6 7 Revenue Particulars
8 Gross Revenue $ 47,388,248 $ 46,947,599 $ 66,590,008 $ 9,609,367 $ 8,694,457 $ 7,147,270 $ 3,305,272 $ 2,977,518 $ 2,967,330 $ 4,040,840 $ 3,280,180 $ 3,654,982 $ 4,505,463 $ 5,724,641 $ 10,682,689 $ 68,721,015 $ 54,251,388 9 Less Uncollectable Accounts $ (1,624,164) $ 1,408,428 $ (1,997,700) $ (288,281) $ (260,834) $ (214,418) $ (99,158) $ (89,326) $ (89,020) $ (121,225) $ (98,405) $ (109,649) $ (135,164) $ (171,739) $ (320,481) $ (2,061,630) $ (1,627,542) 10 Net DCE Total Retail Revenue $ 45,764,084 $ 48,356,027 $ 64,592,308 $ 9,321,086 $ 8,433,624 $ 6,932,852 $ 3,206,114 $ 2,888,193 $ 2,878,310 $ 3,919,614 $ 3,181,774 $ 3,545,332 $ 4,370,299 $ 5,552,902 $ 10,362,209 $ 66,659,385 $ 52,623,846 11 Average Monthly Revenue ($/MWh) $ 91.45 $ 114.66 $ 148.53 $ 149.52 $ 149.68 $ 150.75 $ 113.98 $ 112.57 $ 113.74 $ 150.62 $ 149.94 $ 148.95 $ 149.35 $ 151.57 $ 191.30 $ 148.34 $ 114.91 Other Revenue $ 592,584 $ 614,655 $ 507,200 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 500,600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 258,400 $ 259,000 Other Revenue $ 592,584 $ 609,655 $ 500,000 $ - $ - $ - $ - $ - $ - $ 500,000 $ - $ - $ - $ - $ - $ 250,000 $ 250,000 Investment Income $ - $ 5,000 $ 7,200 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 8,400 $ 9,000 12 Accrual Monthly Revenues $ 46,356,668 $ 48,970,682 $ 65,099,508 $ 9,321,686 $ 8,434,224 $ 6,933,452 $ 3,206,714 $ 2,888,793 $ 2,878,910 $ 4,420,214 $ 3,182,374 $ 3,545,932 $ 4,370,899 $ 5,553,502 $ 10,362,809 $ 66,917,785 $ 52,882,846 13 14 Total DCE Power Cost (w/o DCE Direct))
15 Wholesale Power Supply (All Physical Components) $ 40,772,748 $ 41,569,341 $ 44,730,744 $ 7,587,538 $ 7,824,886 $ 6,688,224 $ 2,535,995 $ 2,029,140 $ 3,255,468 $ 2,404,029 $ 1,899,836 $ 1,691,891 $ 1,754,127 $ 2,281,614 $ 4,777,994 $ 43,848,947 $ 42,721,101 16 TEA Services $ 645,548 $ 640,789 $ 660,013 $ 54,997 $ 54,997 $ 54,997 $ 54,997 $ 54,997 $ 53,395 $ 54,997 $ 54,997 $ 54,997 $ 54,997 $ 54,997 $ 56,647 $ 679,813 $ 700,208 17 TEA Credit Support $ 535,894 $ 544,127 $ 528,909 $ 71,595 $ 65,274 $ 54,356 $ 35,524 $ 32,917 $ 32,548 $ 33,304 $ 28,240 $ 30,963 $ 36,718 $ 44,493 $ 62,978 $ 544,183 $ 518,043 18 TEA Interest2 $ - $ 65,654 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 19 Calpine Data Management $ 577,297 $ 442,744 $ 441,158 $ 36,763 $ 36,763 $ 36,763 $ 36,763 $ 36,763 $ 36,763 $ 36,763 $ 36,763 $ 36,763 $ 36,763 $ 36,763 $ 36,763 $ 441,158 $ 441,158 20 SCE Billing Services $ 81,528 $ 62,525 $ 62,925 $ 5,218 $ 5,218 $ 5,218 $ 5,218 $ 5,218 $ 5,218 $ 5,270 $ 5,270 $ 5,270 $ 5,270 $ 5,270 $ 5,270 $ 63,555 $ 64,190 21 Total Wholesale Cost, Accrual (FiMo) $ 42,613,015 $ 43,325,180 $ 46,423,749 $ 7,756,111 $ 7,987,139 $ 6,839,558 $ 2,668,497 $ 2,159,035 $ 3,383,392 $ 2,534,364 $ 2,025,106 $ 1,819,883 $ 1,887,875 $ 2,423,137 $ 4,939,652 $ 45,577,656 $ 44,444,700 22 Average Wholesale Cost $/MWh $ 85.15 $ 102.73 $ 106.75 $ 124.42 $ 141.76 $ 148.72 $ 94.87 $ 84.15 $ 133.70 $ 97.39 $ 95.43 $ 76.46 $ 64.52 $ 66.14 $ 91.19 $ 101.43 $ 97.05 23 24 River City Bank Credit Facility FY2021/22 Budget FY2021/22 Total FY2022/23 Total Jul 2022 Aug 2022 Sep 2022 Oct 2022 Nov 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 Jun 2023 FY2023/24 Total FY2024/25 Total 27 Related RCB Charges and Fees $ 18,789 $ 74,462 $ 70,380 $ 5,865 $ 5,865 $ 5,865 $ 5,865 $ 5,865 $ 5,865 $ 5,865 $ 5,865 $ 5,865 $ 5,865 $ 5,865 $ 5,865 $ 70,380 $ 35,190 28 Net RCB Credit Accrual $ (18,789) $ (74,462) $ (70,380) $ (5,865) $ (5,865) $ (5,865) $ (5,865) $ (5,865) $ (5,865) $ (5,865) $ (5,865) $ (5,865) $ (5,865) $ (5,865) $ (5,865) $ (70,380) $ (35,190) 29 30 Estimated Operating Expenses FY2021/22 Budget FY2021/22 Total FY2022/23 Total Jul 2022 Aug 2022 Sep 2022 Oct 2022 Nov 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 Jun 2023 FY2023/24 Total FY2024/25 Total 83 Total DCE Internal Operations Charges $ 1,005,669 $ 939,656 $ 1,346,939 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 1,447,959 $ 1,556,556 84 DCE Internal, $ / MWh $ 2.01 $ 2.23 $ 3.10 $ 1.80 $ 1.99 $ 2.44 $ 3.99 $ 4.38 $ 4.44 $ 4.31 $ 5.29 $ 4.72 $ 3.84 $ 3.06 $ 2.07 $ 3.22 $ 3.40 85 86 Total Non Power Opr Exp (DCE + All Services) $ 2,845,936 $ 2,695,495 $ 3,039,945 $ 280,817 $ 274,497 $ 263,579 $ 244,747 $ 242,139 $ 240,169 $ 242,579 $ 237,515 $ 240,238 $ 245,993 $ 253,768 $ 273,903 $ 3,176,669 $ 3,280,155 87 Operating Expenses $/MWh $ 5.69 $ 6.39 $ 6.99 $ 4.50 $ 4.87 $ 5.73 $ 8.70 $ 9.44 $ 9.49 $ 9.32 $ 11.19 $ 10.09 $ 8.41 $ 6.93 $ 5.06 $ 7.07 $ 7.16 88 89 Expected Accrual Results $ -
90 Revenues + Net RCB Credit Facility Impact $ 46,337,879 $ 50,181,565 $ 65,029,128 $ 9,315,821 $ 8,428,359 $ 6,927,587 $ 3,200,849 $ 2,882,928 $ 2,873,045 $ 4,414,349 $ 3,176,509 $ 3,540,067 $ 4,365,034 $ 5,547,637 $ 10,356,944 $ 66,847,405 $ 52,847,656 91 Power and Operations Costs $ 43,618,684 $ 44,264,836 $ 47,770,688 $ 7,868,356 $ 8,099,384 $ 6,951,803 $ 2,780,742 $ 2,271,280 $ 3,495,637 $ 2,646,608 $ 2,137,351 $ 1,932,128 $ 2,000,120 $ 2,535,382 $ 5,051,897 $ 47,025,616 $ 46,001,256 92 Net Margin Avail After Expenses - Accrual $ 2,719,195 $ 5,916,408 $ 17,258,439 $ 1,447,465 $ 328,975 $ (24,216) $ 420,107 $ 611,648 $ (622,592) $ 1,767,741 $ 1,039,158 $ 1,607,939 $ 2,364,914 $ 3,012,255 $ 5,305,046 $ 19,563,389 $ 6,846,400 93 Annual Cumulative Accrual Revenues $ 83,610,108 $ 87,453,794 $ 96,769,615 $ 105,197,973 $ 112,125,560 $ 115,326,409 $ 118,209,336 $ 121,082,382 $ 125,496,731 $ 128,673,240 $ 132,213,307 $ 136,578,341 $ 142,125,978 $ 152,482,922 $ 219,330,326 $ 272,177,983 94 Annual Cumulative Accrual Power and Operations Cost $ 81,679,690 $ 82,367,330 $ 90,235,686 $ 98,335,069 $ 105,286,872 $ 108,067,614 $ 110,338,894 $ 113,834,531 $ 116,481,139 $ 118,618,490 $ 120,550,619 $ 122,550,739 $ 125,086,121 $ 130,138,018 $ 177,163,634 $ 223,164,890 95 Cumulative Net Position - Accrual $ 1,930,418 $ 5,086,464 $ - $ 6,533,929 $ 6,862,904 $ 6,838,688 $ 7,258,795 $ 7,870,443 $ 7,247,851 $ 9,015,592 $ 10,054,750 $ 11,662,689 $ 14,027,603 $ 17,039,857 $ 22,344,903 $ 42,166,693 $ 49,013,093 1 Certain budget line items have been regrouped for presentation purposes and as a means to integrate budget-to-actual reporting capabilities. This consolidating of categories for presentation purposes did not have an effect on the total approved budget. 2 This line item represents an unbudgeted expenditure related to payment of interest on outstanding invoices for procurement by TEA prior to the credit agreement with River City Bank and is not anticipated or budgeted in FY 2022/23.
FY2021/22 Total Budget and Projected Year-End Actuals; FY2022/23 Proposed Budget by Month; and Projected FY2023/24 and FY2024/25 Budget Totals 9 Table 5
FY 2021/22 Total Budget and Projected Year-End Actuals; FY 2022/23 Proposed Budget by Month; and Projected FY 2023/24 and FY 2024/25 Budget Totals
--------
DCE Internal Budget Costs
Estimated Operating Expenses FY2021/22 Budget FY2021/22 Total FY2022/23 Total Jul 2022 Aug 2022 Sep 2022 Oct 2022 Nov 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 Jun 2023 FY2023/24 Total FY2024/25 Total DCE Positions (Accessed via CVAG) Salary and Benefits $ 455,390 $ 449,764 $ 652,248 $ 54,354 $ 54,354 $ 54,354 $ 54,354 $ 54,354 $ 54,354 $ 54,354 $ 54,354 $ 54,354 $ 54,354 $ 54,354 $ 54,354 $ 701,167 $ 753,755 Total Salaries $ 344,104 $ 339,853 $ 494,708 $ 41,226 $ 41,226 $ 41,226 $ 41,226 $ 41,226 $ 41,226 $ 41,226 $ 41,226 $ 41,226 $ 41,226 $ 41,226 $ 41,226 $ 531,811 $ 571,697 Total Benefits $ 111,286 $ 109,912 $ 157,541 $ 13,128 $ 13,128 $ 13,128 $ 13,128 $ 13,128 $ 13,128 $ 13,128 $ 13,128 $ 13,128 $ 13,128 $ 13,128 $ 13,128 $ 169,356 $ 182,058 Contracts and Contract Labor (not incl. elsewhere) $ 126,293 $ 120,239 $ 129,256 $ 10,771 $ 10,771 $ 10,771 $ 10,771 $ 10,771 $ 10,771 $ 10,771 $ 10,771 $ 10,771 $ 10,771 $ 10,771 $ 10,771 $ 138,951 $ 149,372 4425 · Legal Services $ 91,286 $ 82,387 $ 88,566 $ 7,380 $ 7,380 $ 7,380 $ 7,380 $ 7,380 $ 7,380 $ 7,380 $ 7,380 $ 7,380 $ 7,380 $ 7,380 $ 7,380 $ 95,208 $ 102,349 4431 · Professional Services $ 7,800 $ 10,352 $ 11,128 $ 927 $ 927 $ 927 $ 927 $ 927 $ 927 $ 927 $ 927 $ 927 $ 927 $ 927 $ 927 $ 11,963 $ 12,860 4432 · Consultants (w/o TEA, Calpine, SCE) $ 27,207 $ 27,500 $ 29,563 $ 2,464 $ 2,464 $ 2,464 $ 2,464 $ 2,464 $ 2,464 $ 2,464 $ 2,464 $ 2,464 $ 2,464 $ 2,464 $ 2,464 $ 31,780 $ 34,163 CVAG Related Support $ 69,216 $ 111,824 $ 103,989 $ 8,666 $ 8,666 $ 8,666 $ 8,666 $ 8,666 $ 8,666 $ 8,666 $ 8,666 $ 8,666 $ 8,666 $ 8,666 $ 8,666 $ 111,788 $ 120,172 Office Operations $ 16,072 $ 15,428 $ 38,559 $ 3,213 $ 3,213 $ 3,213 $ 3,213 $ 3,213 $ 3,213 $ 3,213 $ 3,213 $ 3,213 $ 3,213 $ 3,213 $ 3,213 $ 41,451 $ 44,560 Meeting Attendance Stipends $ 1,551 $ 1,760 $ 2,408 $ 201 $ 201 $ 201 $ 201 $ 201 $ 201 $ 201 $ 201 $ 201 $ 201 $ 201 $ 201 $ 2,589 $ 2,783 Employee Travel or Training $ 12,360 $ 3,577 $ 6,906 $ 576 $ 576 $ 576 $ 576 $ 576 $ 576 $ 576 $ 576 $ 576 $ 576 $ 576 $ 576 $ 7,424 $ 7,981 Facility Expenses $ 34,330 $ 41,099 $ 38,629 $ 3,219 $ 3,219 $ 3,219 $ 3,219 $ 3,219 $ 3,219 $ 3,219 $ 3,219 $ 3,219 $ 3,219 $ 3,219 $ 3,219 $ 41,527 $ 44,641 Professional Services $ 4,903 $ 49,960 $ 17,486 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 18,797 $ 20,207 Retail Business Support Activities $ 30,554 $ 47,318 $ 50,866 $ 4,239 $ 4,239 $ 4,239 $ 4,239 $ 4,239 $ 4,239 $ 4,239 $ 4,239 $ 4,239 $ 4,239 $ 4,239 $ 4,239 $ 54,681 $ 58,783 4200 · Accounting / Bank Services $ 23,344 $ 37,966 $ 40,813 $ 3,401 $ 3,401 $ 3,401 $ 3,401 $ 3,401 $ 3,401 $ 3,401 $ 3,401 $ 3,401 $ 3,401 $ 3,401 $ 3,401 $ 43,874 $ 47,165 4353 · Insurance $ 7,210 $ 9,352 $ 10,053 $ 838 $ 838 $ 838 $ 838 $ 838 $ 838 $ 838 $ 838 $ 838 $ 838 $ 838 $ 838 $ 10,807 $ 11,618 DCE Programs $ 75,360 $ 26,279 $ 125,000 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 134,375 $ 144,453 4455 · Customer Programs $ 75,360 $ 26,279 $ 125,000 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 10,417 $ 134,375 $ 144,453 Office Supplies and Other Expenses $ 158,856 $ 184,233 $ 285,579 $ 23,798 $ 23,798 $ 23,798 $ 23,798 $ 23,798 $ 23,798 $ 23,798 $ 23,798 $ 23,798 $ 23,798 $ 23,798 $ 23,798 $ 306,997 $ 330,022 4433 · Outreach Services $ 40,020 $ 42,532 $ 133,250 $ 11,104 $ 11,104 $ 11,104 $ 11,104 $ 11,104 $ 11,104 $ 11,104 $ 11,104 $ 11,104 $ 11,104 $ 11,104 $ 11,104 $ 143,244 $ 153,987 4435 · Technology Costs (IT) $ 9,970 $ 1,863 $ 2,002 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 2,153 $ 2,314 4440 · Postage $ 6,617 $ 17,745 $ 19,076 $ 1,590 $ 1,590 $ 1,590 $ 1,590 $ 1,590 $ 1,590 $ 1,590 $ 1,590 $ 1,590 $ 1,590 $ 1,590 $ 1,590 $ 20,506 $ 22,044 4441 · Printing $ 8,088 $ 20,550 $ 22,092 $ 1,841 $ 1,841 $ 1,841 $ 1,841 $ 1,841 $ 1,841 $ 1,841 $ 1,841 $ 1,841 $ 1,841 $ 1,841 $ 1,841 $ 23,749 $ 25,530 4500 · Registrations/Memberships $ 86,746 $ 101,543 $ 109,159 $ 9,097 $ 9,097 $ 9,097 $ 9,097 $ 9,097 $ 9,097 $ 9,097 $ 9,097 $ 9,097 $ 9,097 $ 9,097 $ 9,097 $ 117,346 $ 126,147 Miscellaneous Expenses3 $ 7,415 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Contingency3 $ 90,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total DCE Internal Operations Charges $ 1,005,669 $ 939,656 $ 1,346,939 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 112,245 $ 1,447,959 $ 1,556,556 DCE Internal, $ / MWh $ 2.01 $ 2.23 $ 3.10 $ 1.80 $ 1.99 $ 2.44 $ 3.99 $ 4.38 $ 4.44 $ 4.31 $ 5.29 $ 4.72 $ 3.84 $ 3.06 $ 2.07 $ 3.22 $ 3.40 3 Blanket contingency and miscellaneous expense lines have been removed from the FY 2022/23 budget as expenses were evaluated on a budget-line basis and represent anticipated increased costs.
RESOLUTION NO. 2022-04
A RESOLUTION OF THE BOARD OF DIRECTORS OF
DESERT COMMUNITY ENERGY
ADOPTING FISCAL YEAR 2022/23 ANNUAL BUDGET
THE BOARD OF DIRECTORS OF DESERT COMMUNITY ENERGY DOES HEREBY FIND, RESOLVE, AND ORDER AS FOLLOWS:
WHEREAS, Desert Community Energy ("DCE") is a joint powers authority established on October 30, 2017 for the purpose of implementing community choice aggregation programs under Public Utilities Code Section 366.2.0; and
WHEREAS, under Section 5.3.1 of the DCE Joint Powers Agreement the Board of Directors is to approve an annual budget by June 30th of each year for the next following fiscal year; and
WHEREAS, this budget pertains to Fiscal Year July 1, 2022, through June 30, 2023; and WHEREAS, this budget provides guidelines to allocate DCE costs and revenues between Members with and without an active CCA program; and WHEREAS, the DCE Fiscal Year 2022/23 Budget was presented to the Board of Directors at a duly noticed public meeting for its consideration and adoption.
NOW THEREFORE, the Board of Directors ("Board") of Desert Community Energy does hereby resolve, determine, and order as follows:
1. The Board of Directors hereby adopts the DCE Fiscal Year 2022/23 Budget.
ADOPTED AND APPROVED by the Board of Directors of Desert Community Energy on this 29th day of June 2022.
___________________________________
Geoff Kors
Chair, Desert Community Energy
Attest:
_____________________________________
Tom Kirk
Secretary, Desert Community Energy
ITEM 7B
STAFF REPORT
Subject: First Amendment to Credit Agreement with River City Bank Contact: David Freedman, Program Manager ([email protected]) Recommendation: Adopt Resolution 2022-05, approving the First Amendment to Credit Agreement with River City Bank for an increased total not to exceed $13,000,000, and authorize the Executive Director, in consultation with Legal Counsel, to take the necessary steps to finalize and execute the credit agreement amendment and related documents Background: At the January 10, 2022, meeting, the DCE Board of Directors authorized the Executive Director to negotiate and execute a Credit Facility with River City Bank (RCB) for an amount not to exceed $8,000,000 for three years in order to help DCE address short-term working capital requirements. DCE entered into the revolving line of credit agreement (Credit Agreement) on February 11, 2022. As of May 31, 2022, there is an outstanding balance of $3.4 million.
Under the rules of the California Public Utilities Commission (CPUC), CCAs such as DCE must post a financial security requirement (FSR) with the Investor-Owned Utility (IOU) that serves them to cover increased costs the IOU may incur should there be an involuntary return of the CCA’s customers to the IOU because the CCA is no longer able to serve those customers. The FSR is recalculated each May 10 and November 10, with the FSR to be posted by the following July 1 and January 1. DCE is served by Southern California Edison (SCE), and the FSR is calculated according to SCE’s Rule 23, its tariff for CCAs in its service territory.
DCE’s required FSR posting has been the minimum, currently $147,000, and that amount was expected to continue when DCE arranged for the Credit Agreement for up to $8 million. However, on May 10, SCE filed with the CPUC an Advice Letter informing DCE and the other CCAs in its territory of very large increases in their FSRs to be posted by July 1 for the period through December 31, 2022. According to SCE’s May 10 filing, DCE’s FSR would increase to almost $5.2 million, and the total FSR for the CCAs in SCE territory is estimated at in excess of $120 million.
The direct cause of this sudden astronomic increase in the FSR amount is higher forecast wholesale energy prices during the six-month forward period of June – November 2022. In its FSR calculation SCE relied on forward electricity prices quoted in April 2022, which were much higher than the March 2022 forward prices. The spike in forward prices is partly due to the Russian invasion of Ukraine and its direct effect on the worldwide price for natural gas, which is the benchmark for electricity prices.
Through its legal counsel, DCE filed a protest letter with the CPUC on May 31, 2022 to contest SCE’s FSR calculation as being inconsistent with CPUC decisions and SCE Rule 23. DCE also asked the CPUC to require SCE to base its FSR calculation on the March 2022 forward energy process, to be consistent with the FSR calculations the other two IOUs, Pacific Gas & Electric and San Diego Gas & Electric, used for the CCAs in their service territories. Had SCE used the March prices, DCE’s FSR posting for the period of July 1 to December 31, 2022, would have remained at $147,000.
Desert Community Energy Board
June 29, 2022
DCE is working with California Community Choice Association (CalCCA), the trade association for the CCAs, which also filed a protest letter, as did Orange County Power Authority, which is another CCA in SCE territory. In response to these protest letters, SCE agreed in a June 7 filing that it had misapplied its Rule 23 tariff and lowered DCE’s total FSR to approximately $4.5 million.
CalCCA is also party to a CPUC proceeding to reform the FSR calculation methodologies that may remove some of their current volatility. A decision in that proceeding is not expected until the first part of 2023.
On June 9, the CPUC Energy Division staff suspended SCE’s Advice Letter until October 6, 2022, for further consideration by the CPUC of the arguments raised by the parties. However, the Energy Division staff could act on the Advice Letter before then. If the protest letter is ultimately unsuccessful, SCE’s proposed new FSR for DCE, together with expected drawings under the Credit Agreement with RCB during the FSR period of July – December 2022, would require DCE to exceed the existing Credit Agreement’s $8 million commitment limit. Accordingly, DCE staff requested from RCB an increase in the Credit Agreement commitment from $8 million to $13 million. RCB has agreed to offer a $5 million increase to DCE’s Credit Agreement, under a First Amendment to Credit Agreement (First Amendment) to be used specifically for the issuance of standby letters of credit such as the FSR. RCB will structure the line with an $8 million cash advance sublimit (equal to the existing commitment), and up to $13 million can be used for letters of credit. Any existing cash advances and letters of credit issued under the line will reduce the available commitment.
RCB requires that the increased commitment of up to $13 million be covered by the Guaranty of the City of Palm Springs, approved by the Palm Springs City Council on January 27, 2022 for the original Credit Agreement. The Guaranty also states that any amendment of the Credit Agreement that would increase the amount of the commitment requires the prior written consent of the City as guarantor. DCE staff is working with City staff to complete the necessary documents for its Consent and Reaffirmation of Guaranty consenting to the increase in the commitment from $8 million to $13 million. A resolution from the Palm Springs City Council for approval of the Consent and Reaffirmation of Guaranty is required and was approved by the Council at its June 16 meeting.
DCE staff is recommending that the Board of Directors adopt Resolution 2022-05 to delegate authority to the DCE Executive Director, in consultation with General Counsel, to negotiate, finalize and execute the First Amendment with RCB and an Amended and Restated Revolving Credit Promissory Note (Promissory Note) and Letter of Credit Note in favor of SCE for the required FSR amount (Credit Note), together with such changes as may be deemed necessary or appropriate upon advice from the General Counsel and DCE’s advisors. This delegation is requested due to the time-sensitive nature of negotiations. Drafts of these documents provided by RCB are attached to this staff report.
Fiscal Analysis: Under the terms of the First Amendment offered by RCB, a line of credit of up to $13 million with an $8 million cash advance sublimit for three years would be available to help DCE address short-term working capital requirements and its FSR obligations to SCE. The line of credit will be secured by Consent and Reaffirmation of Guaranty from the City of Palm Springs.
The interest on the line of credit is floating at the three-month US Treasury (“UST”) bill yield plus
1.75 percent. The three-month UST bill yield was 1.12 percent at close of trading hours on June 1, 2022, indicating an all-in rate of 2.87 percent. The debt service payments and fees under the Credit Agreement as modified by the First Amendment are incorporated into the Fiscal Year 2022/2023 budget.
While standby letters of credit such as the FSR reduce the Credit Agreement availability, there is no interest accrual on the letter of credit commitment as long as the letter of credit remains undrawn. However, under the terms of the Credit Agreement, RCB charges various fees for issuance of a letter of credit. Assuming DCE were required to post the $4.5 million FSR requested by SCE for the period of October – December 2022, the RCB fees would be approximately $35,000. This amount is also incorporated into the Fiscal Year 2022/2023 budget.
Attachments:
1. Resolution 2022-05
2. First Amendment to Credit Agreement with River City Bank
3. Amended and Restated Revolving Credit Promissory Note
4. Letter of Credit Note in favor of SCE
RESOLUTION NUMBER 2022-05
A RESOLUTION OF THE BOARD OF DIRECTORS
OF DESERT COMMUNITY ENERGY
APPROVING AN AMENDED CREDIT FACILITY AND
AUTHORIZING THE EXECUTIVE DIRECTOR TO APPROVE RELATED AGREEMENTS WHEREAS, Desert Community Energy (DCE) is a joint powers authority established on October 30, 2017 for the purpose of implementing community choice aggregation programs under Public Utilities Code Section 366.2.0; and
WHEREAS, Desert Community Energy (“DCE”) entered into a Credit Agreement with River City Bank (“RCB”) to provide a Commercial Revolving Line of Credit for working capital in the amount of up to $8,000,000 on February 11, 2022; and WHEREAS, DCE may be required to post a letter of credit of up to $5 million in collateral for the benefit of Southern California Edison to satisfy regulatory requirements imposed by the California Public Utilities Commission and has negotiated an increase in the amount available under the Credit Agreement to $13,000,000 to allow for such posting pursuant to that certain draft First Amendment to Credit Agreement, Amended and Restated Revolving Credit Note and Letter of Credit Note with RCB (collectively, the “Revised Loan Documents”), and WHEREAS, the increased line of credit under the Credit Agreement, as modified by the Revised Loan Documents, will continue to be secured by an unconditional guaranty of all obligations of DCE as borrower from the City of Palm Springs; and WHEREAS, the DCE Board of Directors desires to delegate authority to the Executive Director and General Counsel to finalize and execute Revised Loan Documents with RCB in satisfaction of DCE’s additional credit requirements, consistent with the terms and conditions set forth in the Credit Agreement, as amended by the Revised Loan Documents, and pending approval of a Consent and Reaffirmation of Guaranty from the City of Palm Springs; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of DCE as follows:
1. The Board of Directors has reviewed the Revised Loan Documents and the recommendations of DCE staff and legal counsel and has determined that the recitals herein are true and correct.
2. The expanded line of credit of $13,000,000, as documented in the Revised Loan Documents, is hereby approved, together with such changes and additions as the Executive Officer and General Counsel may deem necessary, appropriate or advisable, for the performance of DCE’s obligations thereunder and the consummation of the transactions contemplated thereby be, and are hereby, approved.
3. The Board of Directors hereby authorizes the Executive Director, or his designee, with the advice of legal counsel, to finalize and execute the Revised Loan Documents, as well as any documents ancillary thereto.
4. This Resolution shall be effective immediately upon approval by the Board of Directors.
PASSED AND ADOPTED by the Board of Directors of Desert Community Energy on this 29th day of June, 2022.
AYES:
NOES:
ABSTAIN:
ABSENT:
__________________________________
Geoff Kors
Chair, Desert Community Energy
Attest:
___________________________
Tom Kirk
Secretary, Desert Community Energy
Approved as to form:
___________________________
Glen Price
DCE Legal Counsel
FIRST AMENDMENT TO CREDIT AGREEMENT
PAGE 1
FIRST AMENDMENT TO CREDIT AGREEMENT
This First Amendment to Credit Agreement (this “Amendment”) is entered into as of June ___, 2022, by and between DESERT COMMUNITY ENERGY, a public agency formed under the provisions of the Joint Exercise of Powers Act of the State of California, Government Code Section 6500 et. seq. (“Borrower”), and RIVER CITY BANK, a California corporation (“Lender”).
1. Background and Purpose.
1.1 Lender and Borrower have entered into a revolving credit facility as set forth in that certain Credit Agreement (the “Credit Agreement”) dated as of February 11, 2022.
Capitalized terms used but not defined herein shall have the meanings set forth in the Credit Agreement.
1.2 Borrower has requested certain modifications of the Credit Agreement. Lender is willing to grant Borrower’s request, on the terms and conditions set forth in this Amendment.
NOW, THEREFORE, in consideration of the mutual benefits of the parties hereto and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
2. Amendment of Credit Agreement. The Credit Agreement is hereby amended as follows:
2.1 Revolving Credit Commitment. The Revolving Credit Commitment is hereby increased from $8,000,000.00 to $13,000,000.00; provided, however, that Working Capital Advances shall be subject to a sublimit of $8,000,000.00. In no event will Borrower be entitled to request Working Capital Advances in an aggregate amount in excess of $8,000,000.00 outstanding at any time. The term “Promissory Note” as used in the Credit Agreement is hereby amended to mean that certain Amended and Restated Revolving Credit Promissory Note dated as of the date of this Amendment, made by Borrower and payable to the order of Lender in the original principal amount of $13,000,000.00.
2.2 Letter of Credit Increase. The Irrevocable Non-Transferable Standby Letter of Credit No. SLCPPDX08105 issued December 7, 2020, for the benefit of Southern California Edison Company, will be increased from $147,000.00 to $5,192,792.00 and will no longer be cash secured; rather it will be deemed a Letter of Credit Advance under the Revolving Credit and subject to the terms and conditions of the Credit Agreement.
3. Conditions Precedent. The effectiveness of this Amendment is expressly conditioned upon the satisfaction of all of the following conditions:
3.1 Documents. Borrower shall have executed (if applicable) and Lender shall have received all of the following documents:
(a) this Amendment, the Amended and Restated Revolving Credit Promissory Note, and the Letter of Credit Note, in the form provided herewith;
FIRST AMENDMENT TO CREDIT AGREEMENT
PAGE 2
(b) the Consent and Reaffirmation of Guaranty in the form provided herewith, duly executed by Guarantor;
(c) a favorable written legal opinion from Borrower’s counsel as to power and authority of Borrower to enter into this Amendment and perform its Obligations under the Credit Agreement, as amended; the power and authority of Guarantor to enter into Consent and Reaffirmation of Guaranty and perform its Obligations under the Guaranty, as amended; and the due execution, validity and enforceability of this Amendment and the Consent and Reaffirmation of Guaranty; and
(d) such other documents, instruments and agreements as Lender may reasonably request.
3.2 Fees and Costs. Lender shall have received, in immediately available funds, payment of all fees and costs listed on the Invoice provided herewith.
3.3 Representations and Warranties. All representations and warranties contained herein shall be true and correct in all material respects, and no Default or Event of Default shall have occurred and be continuing.
4. Representations and Warranties. By signing this Amendment, Borrower hereby represents and warrants that (a) all representations and warranties in the Credit Agreement are true and correct in all material respects as of the date hereof, (b) Borrower is duly authorized to enter into this Amendment, and (c) no Default or Event of Default has occurred or is continuing under the Credit Agreement.
5. Continuing Validity. Except as expressly modified by this Amendment, the terms of the original Credit Agreement remain unchanged and in full force and effect. Consent by Lender to this Amendment does not waive Lender’s right to strict performance of the Credit Agreement as modified, nor obligate Lender to make any future amendments.
FIRST AMENDMENT TO CREDIT AGREEMENT
PAGE 3
IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the first date written above.
BORROWER:
DESERT COMMUNITY ENERGY
By: _____________________________
Thomas Kirk
Executive Director
LENDER:
RIVER CITY BANK
By: _____________________________
Name: _____________________________
Its: _____________________________
AMENDED AND RESTATED REVOLVING CREDIT PROMISSORY NOTE 1 LOAN NO. 5084549791-101
AMENDED AND RESTATED REVOLVING CREDIT PROMISSORY NOTE
$13,000,000.00 June __, 2022
FOR VALUE RECEIVED, DESERT COMMUNITY ENERGY, a public agency formed under the provisions of the Joint Exercise of Powers Act of the State of California, Government Code Section 6500 et seq. (“Borrower”), promises to pay to the order of RIVER CITY BANK (“Lender”) the principal sum of up to THIRTEEN MILLION and No/100 DOLLARS ($13,000,000.00), pursuant to the terms of that certain Credit Agreement (as amended, the “Credit Agreement”) dated as of February 11, 2022, between Borrower and Lender, together with interest thereon as provided herein and therein. All payments under this Amended and Restated Revolving Credit Promissory Note (this “Note”) shall be made to Lender at its address specified in the Credit Agreement, or at such other place as the holder of this Note may from time to time designate in writing, in accordance with the terms of this Note and the Credit Agreement. Capitalized terms used but not defined in this Note shall have the definitions provided in the Credit Agreement.
Payment Terms. Borrower agrees to pay monthly payments of interest only on the unpaid principal balance of this Note as of each Payment Date beginning on July 1, 2022, with all subsequent payments due and payable on each Payment Date thereafter as provided in Section 3 of the Credit Agreement. Interest will accrue prior to maturity (whether by lapse of time, acceleration or otherwise) at the Applicable Rate and after maturity (whether by lapse of time, acceleration or otherwise), whether before or after judgment, at the Default Rate, until paid in full.
Maturity Date. The outstanding principal balance of this Note and all accrued but unpaid interest thereon shall be due and payable in full on the Revolving Credit Termination Date.
Under the terms of the Credit Agreement and subject to the conditions set forth therein, Borrower may request that any Working Capital Advances outstanding under this Note be converted into a Term Loan evidenced by a Term Note.
Default and Acceleration. Upon the occurrence of any Event of Default described in Section 11.1 of the Credit Agreement, Lender or any permitted holder of this Note may exercise any or all of the rights and remedies set forth therein, including the exercise of Lender’s option to accelerate this Note and declare all Advances and all indebtedness under this Note then outstanding to be immediately due and payable, with or without notice to Borrower, as applicable.
Miscellaneous. This Note and the holder hereof are entitled to all of the rights benefits provided for in the Credit Agreement. All of the terms, covenants and conditions contained in the Credit Agreement are hereby made part of this Note to the same extent and with the same force as if they were fully set forth herein. In the event of a conflict or inconsistency between the terms of this Note and the Credit Agreement, the terms and provisions of the Credit Agreement shall control.
AMENDED AND RESTATED REVOLVING CREDIT PROMISSORY NOTE 2 LOAN NO. 5084549791-101
This Note may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of Borrower or Lender, but only by an agreement in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought.
This Note will be construed in accordance with, and governed by, the internal laws of the State of California.
Borrower promises to pay all costs and expenses (including reasonable attorneys’ fees and expert witnesses’ fees) suffered or incurred by Lender or subsequent holder of this Note in the collection of this Note or the enforcement Lender’s rights and remedies under the Credit Agreement.
Borrower hereby waives presentment for payment and demand. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forego enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive any applicable statute of limitations, presentment, demand for payment, and notice of dishonor.
Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) the obligations evidenced by this Note or release any party or guarantor or collateral, or impair, fail to realize upon or perfect Lender’s security interest in the collateral, if any; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify the terms of this Note without the consent of or notice to anyone other than the party with whom the modification is made.
Prior to signing this Note, Borrower read and understood all the provisions of this Note and the Credit Agreement, including the variable interest rate provisions in the Credit Agreement. Borrower agrees to the terms of this Note and the Credit Agreement.
Borrower acknowledges receipt of complete copies of this Note and the Credit Agreement.
DESERT COMMUNITY ENERGY
By:
Name:
Its:
1 LETTER OF CREDIT NOTE
$5,192,792.00 Date: June __, 2022
FOR VALUE RECEIVED, DESERT COMMUNITY ENERGY, a public agency formed under the provisions of the Joint Exercise of Powers Act of the State of California, Government Code Section 6500 et. seq. (“Borrower”), promises to pay to the order of RIVER CITY BANK (“Lender”) the principal sum of FIVE MILLION ONE HUNDRED NINETY TWO THOUSAND SEVEN HUNDRED NINETY TWO AND NO/100 DOLLARS ($5,192,792.00,) pursuant to the terms of that certain Credit Agreement (as amended, the “Credit Agreement”) dated as of February 11, 2022, between Borrower and Lender, together with interest thereon as provided herein and therein. All payments under this Letter of Credit Note (this “Note”) shall be made to Lender at its address specified in the Credit Agreement or at such other place as the holder of this Note may from time to time designate in writing, in accordance with the terms of this Note and the Credit Agreement. Capitalized terms used but not defined in this Note shall have the definitions provided in the Credit Agreement.
Letter of Credit. This Note is executed in connection with a Letter of Credit (as amended, the “Letter of Credit”) issued by US Bank, N.A. (“Issuing Bank”) on December 7, 2020, in favor of Southern California Edison Company (as Beneficiary) and identified as number: SLCPPDX08105, as amended by Amendment No. 1 dated June __, 2022, increasing the amount of the Letter of Credit from $147,000.00 to $5,192,792.00. This Note restates and replaces that certain Promissory Note dated December 2, 2020, made by Borrower and payable to the order of Lender in the original principal amount of $147,000.00.
Draw or Demand under the Letter of Credit. Borrower directs and authorizes Lender to immediately advance funds under this Note to repay in full any demand or draw request form Beneficiary under the Letter of Credit (the “Disbursement”).
Payment Terms. Borrower agrees to pay any Disbursement immediately upon demand from Lender and in no event less than three (3) calendar days from the date of the Disbursement (the “Demand Date”). From the date of the Disbursement to the Demand Date, Borrower shall pay interest only on the unpaid principal balance of this Note (whether by lapse of time, acceleration or otherwise) at the Applicable Rate and after the Demand Date (whether by lapse of time, acceleration or otherwise), whether before or after judgment, at the Default Rate, until paid in full.
Maturity Date. The repayment obligations from Borrower to Lender under this Note shall remain in full force and effect until the original Letter of Credit including any and all amendments is surrendered to Issuing Bank undrawn and cancelled to the satisfaction of Issuing Bank.
Credit Agreement and Cash Collateral. Borrower shall provide Cash Collateral to Lender with a value of not less than 110% of the stated principal amount of this Note upon the occurrence of any of the events described in Section 4.4 of the Credit Agreement. 2 Default and Acceleration. Upon the occurrence of any Event of Default described in Section 11.1 of the Credit Agreement, Lender or any permitted holder of this Note may exercise any or all of the rights and remedies set forth therein, including the exercise of Lender’s option to accelerate this Note and declare all Advances and all indebtedness under this Note then outstanding to be immediately due and payable, with or without notice to Borrower, as applicable.
Miscellaneous. This Note and the holder hereof are entitled to all of the rights and benefits provided for in the Credit Agreement. All of the terms, covenants and conditions contained in the Credit Agreement are hereby made part of this Note to the same extent and with the same force as if they were fully set forth herein. In the event of a conflict or inconsistency between the terms of this Note and the Credit Agreement, the terms and provisions of the Credit Agreement shall control.
This Note may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of Borrower or Lender, but only by an agreement in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought.
This Note will be construed in accordance with, and governed by, the internal laws of the State of California.
Borrower promises to pay all costs and expenses (including reasonable attorneys’ fees and expert witnesses’ fees) suffered or incurred by Lender or subsequent holder of this Note in the collection of this Note or the enforcement Lender’s rights and remedies under the Credit Agreement.
Borrower hereby waives presentment for payment and demand. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forego enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs or endorses this Note, to the extent allowed by law, waive any applicable statute of limitations, presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) the obligations evidenced by this Note or release any party or collateral, or impair, fail to realize upon or perfect Lender’s security interest in the collateral, if any; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify the terms of this Note without the consent of or notice to anyone other than the party with whom the modification is made. / / /
/ / /
3 Prior to signing this Note, Borrower read and understood all the provisions of this Note and the Credit Agreement, including the variable interest rate provisions in the Credit Agreement. Borrower agrees to the terms of this Note and the Credit Agreement.
Borrower acknowledges receipt of complete copies of this Note and the Credit Agreement.
DESERT COMMUNITY ENERGY
By:
Name:
Title:
ITEM 7C
STAFF REPORT
Subject: DCE Renewable Energy Procurement and SCE’s PCIA Voluntary Allocation Contact: David Freedman, Program Manager ([email protected]) and Jaclyn Harr, The Energy Authority
Recommendation: Approve a voluntary allocation of Southern California Edison’s Power Charge Indifference Adjustment Long-Term Renewable Energy Portfolio and authorize the Executive Director to execute the Voluntary Allocation Election Form Background: DCE customers reimburse Southern California Edison (SCE) for above-market costs of the energy resources procured on behalf of those customers, including renewable energy contracts, through the Power Charge Indifference Adjustment (PCIA) or “exit fee.” In the past, DCE customers paid for these above market costs through the PCIA, but DCE was not able to count the PCIA resources in its portfolio. In 2021, the California Public Utilities Commission (CPUC) ordered the Investor-Owned Utilities (IOUs) to offer PCIA-paying load-serving entities (LSEs) like DCE voluntary allocations of PCIA-eligible renewable resources, and then sell any unallocated resources through an annual Market Offer process. This program is referred to as the Voluntary Allocation & Market Offer (VAMO) process. DCE now has an opportunity to secure allocations of PCIA-eligible renewable resources from SCE. DCE would pay the annual Market Price Benchmark (MPB) for resources allocated through this process. This MPB fluctuates in any given year and is the benchmark used to set the renewable energy portion of the PCIA.
In order to secure voluntary allocations, DCE must participate in SCE’s enrollment process by providing a Voluntary Allocation Election Form by July 1, 2022 and then entering into a voluntary allocation agreement by July 29, 2022. A portion of the PCIA-eligible renewable energy resources includes long-term contracts (meaning they have at least 10 years in the remaining term). Per DCE’s Energy Risk Management Policy, any power purchase transactions greater than two years require approval by the Board.
With this item, DCE staff is providing details on the enrollment process, an overview of the options that have been reviewed and a recommended approach in the voluntary allocation election. If approved by the Board, staff will return to the Board of Directors in July with a Voluntary Allocation Agreement to complete the process.
Voluntary Allocation Portfolio Overview
DCE has the option to receive allocations from the SCE PCIA renewable portfolio based on DCE’s most recent annual load share. SCE provided DCE with a list of contracts and an indicative forecast of each resource’s generation output that would be available to DCE. 1 The long-term
resources are comprised primarily of solar and wind, as shown below:
1 The allocation forecast data is confidential, therefore DCE is only presenting aggregated data in this staff report.
Desert Community Energy Board
June 29, 2022
Long-Term Voluntary Allocation Portfolio – Resource Type and Percentage of Total Portfolio
The portfolio only includes Renewable Portfolio Standard (RPS)-eligible renewable energy and does not include any nuclear or fossil fuel resources. The PCIA renewable allocation is comprised of renewable energy resources but does not include Resource Adequacy (RA) value or deliver an energy hedge for DCE.
Voluntary Allocation & Market Offer (VAMO) Process
There are many key features to the Voluntary Allocation Process:
• DCE may elect its allocation in 10% increments of its total allowable allocation (e.g., 0%, 10%, 20%, 30%... up to 100%), in three separate categories, as described in the below table:
Category Description of Resources in Final Load Share Allocations A Short-term load share resources - less than 10 years remaining on the contracts with allocations for 2023 and 2024 only
B
Long-term load share resources - 10 years or longer remaining on the contracts with allocations for the remainder of the term of the contract but excluding utility-owned generation or evergreen contracts (i.e., without an end to the term)
Solar, 59%
Wind, 37%
Geothermal, 2%
Small Hydro, 1%
DCE VAMO Long-Term Allocation Share
Solar Wind Geothermal Small Hydro
C Additional long-term load share resources - 10 years or longer remaining on the contracts with allocations for 2023 and 2024 only As a condition to making an election of Category C resources, DCE must first elect 100% of its Category A short-term load share. If does not intend to accept any Category C resources, then it is not required to elect 100% of its Category A short-term load share.
The total of the long-term load share allocations accepted by DCE may not exceed the amount of short-term and long-term resources in the final load share allocations.
Specifically, DCE’s combined elections of Category B and Category C, both for long-term resources, cannot exceed 100%. Similarly, DCE’s election of Category A for short-term resources cannot exceed 100%.
• DCE will pay for the delivered renewable energy at the Market Price Benchmark, which is representative of the current market value of renewables in any given year. • If DCE elects an allocation, SCE will continue to remain the counterparty of the resource contracts (i.e., the contracts are not assigned to DCE and DCE will not take on the obligations of the contract).
• If DCE chooses to receive a Category B long-term allocation, the allocation commitment will span the full term of the underlying contracts. The longest contract term in the portfolio extends through 2040.
• Once the allocation is transferred to DCE, DCE may resell the renewable energy. • Allocations will be offered once per RPS Compliance Period, which is currently in California RPS Compliance Period 4 (2021-2024). The next opportunity to receive an allocation will be in 2024 for the 2025-2027 Compliance Period.
SCE will sell any remaining allocations not taken by LSEs to the market through the Market Offer process, which will be carried out by the end of 2022. DCE may participate in this Market Offer process to secure additional renewable energy not already elected for allocation. Staff will review with TEA Market Offer opportunities and will bring any purchase recommendations to the Board for consideration. Any unsold volumes in the Market Offer will remain with SCE for the benefit of their customers despite their above market costs being paid for by DCE customers through the PCIA.
Rationale For Electing Allocations
There are several reasons why electing allocations is beneficial for DCE customers:
• DCE has a large and growing renewable energy demand, for which DCE will need to procure supply. The renewable allocations will be particularly helpful in the near term to help meet the additional renewable energy demand caused by DCE’s default product being 100% carbon free.
• Pursuant to SB 350, DCE is subject to long-term contracting requirements.2 While DCE has already met and exceeded these requirements with resources already under contract to come online through 2024, there is a risk that DCE could miss its compliance 2 65% of DCE’s RPS compliance requirement must be met with contracts that are 10 years or longer in term. requirement for the 2021-2024 period due to project delays or failures. Electing additional long-term contracts from the PCIA renewable portfolio that will start delivering renewable energy to DCE starting in 2023 will mitigate this compliance risk. • Allocations that remain in SCE’s portfolio (i.e., not obtained by DCE and other LSEs) will only benefit SCE’s customers.
• While electing allocations is beneficial to DCE, allocations of these existing resources will effectively reduce DCE’s demand for new-build renewables. Therefore, the selection of allocations must be balanced with DCE’s priority of expanding the availability of new renewable and clean energy resources on California’s grid.
Voluntary Allocation Recommendation
On June 9, 2022, The Energy Authority (TEA) presented DCE staff with allocation election options. Staff supported TEA’s recommendation to take a 0% allocation of short-term load share resources (Category A), 100% allocation of long-term load share resources (Category B), and 0% allocation of additional long-term load share resources (Category C). This recommendation would help ensure DCE meets its SB 350 long-term contracting requirement in the 2021-2024 RPS Compliance Period. It also minimizes volume of PCIA resources at risk of being stranded in the Market Offer process. It allows room for DCE to do additional procurement of new build renewable resources. And, notably, unbundled RECs3 make up a very small portion of the long-term portfolio.
Should DCE seek to secure additional long-term renewable allocation, the next 2024 VAMO process will be another opportunity for DCE to obtain these resources.
With this item, DCE staff recommends approval of the voluntary allocation election recommended by TEA for the reasons described above. The voluntary allocation will be secured via the Voluntary Allocation Agreement to be executed by DCE and SCE. SCE has filed its Standard Voluntary Allocation Pro Forma Contract with the CPUC and is awaiting CPUC approval, which is expected to occur at the CPUC’s June 23 Voting Meeting. Upon approval of this item, DCE staff, TEA and DCE’s legal counsel will review the Voluntary Allocation Agreement and will bring it to the Board for approval at the July 18 meeting.
Fiscal Analysis: The costs associated with determining the recommended allocation are covered under the existing TEA contract and staff time. DCE expects the cost of this procurement to average $2 million per annum. Given the nature of the product being contracted for, this cost would likely be a subset of currently expected renewable and carbon free procurement.
Attachment:
SCE Voluntary Allocation Election Form
3 Unbundled RECs or “PCC3 RECs” are low-value renewable energy credits and are not associated with direct energy delivery. The state’s RPS rules permit up to 10% of renewable resources to be provided through PCC3 RECs.
Contract Participant Name:
(As it should appear on the Voluntary Allocation
Agreement)
Category Election, % Description of Resources in Final Load Share Allocations A
Short-term load share resources - less than 10 years remaining on the contracts with allocations for 2023 and 2024 only)
B
Long-term load share resources - 10 years or longer remaining on the contracts with allocations for the remainder of the term of the contract but excluding utility-owned generation or evergreen contracts (i.e., without an end to the term) C
Additional long-term load share resources - 10 years or longer remaining on the contracts with allocations for 2023 and 2024 only
Total Election from Long Term Portfolio%
Authorized LSE Representative:
Title:
E-mail:
Date:
Signature:
Southern California Edison
2022 PCIA Voluntary Allocation Election Form
Instructions- Indicate your elections of the final load share allocations SCE provided to you which you intend to accept in the table below. - Elections must be provided in 10% increments for each of the three Categories A, B, and C below.- A percentage election must be entered for all three categories in below, and none of the fields below may be left blank. - If you do not intend to accept any portion of your load share allocations for one or more categories, then enter “0” for each such category in the relevant cell. - SCE will prepare a Voluntary Allocation Agreement between SCE and you using the information you provide in this form. I am authorized to submit this Voluntary Allocation election form on behalf of LSE and understand that the election percentage cannot be modified after submittal. The information contained herein is true and correct to the best of my knowledge. Requirements and Conditions to Making Elections
1. As a condition to making an election of Category C resources, you must first elect 100% of your Category A short-term load share. a. If you do not intend to accept any Category C resources, then you are not required to elect 100% of your Category A short-term load share.
2. The total of the long-term load share allocations accepted by you may not exceed the amount of short-term and long-term resources in the final load share allocations. a. Specifically, your combined elections of Category B and Category C, both for long-term resources, cannot exceed 100%. b. Similarly, your election of Category A for short-term resources cannot exceed 100%.Notes - This election form is due by Friday, 5/27/2022 5 pm- Please provide your name, title, e-mail, and submittal date to acknowledge that your volutary allocation elections are final. - Elections made in this Form are binding and may not be modified after submittal.
ITEM 8A 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.
COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS SCHEDULE OF MEETINGS FISCAL YEAR 2022/2023
CVAG STANDING
COMMITTEES
DAY TIME JULY
(Dark)
AUG
(Dark)
SEPT OCT
(Dark)
NOV DEC
(Dark)
JAN FEB MAR
(Dark)
APR MAY JUN
EXECUTIVE COMMITTEE Last Monday 4:30 p.m. - - 26 - H
Dec 5 - 30 27 - 24 HJune 5 26
TRANSPORTATION COMMITTEE 1st Monday 10:00 a.m. - H
Aug 29 - 7 -
H
Jan 9
11:00 am
6 - 3 1 5
COACHELLA VALLEY
CONSERVATION COMMISSION 2nd Thursday 10:30 a.m. - - 8 - 10 - 12 9 - 13 11 8 DESERT COMMUNITY ENERGY 3rd Monday 3:00 p.m. 18 22 19 17 21 - H Jan 9
H
Feb13 20 17 15 12
ENERGY AND ENVIRONMENTAL
RESOURCES COMMITTEE 2nd Thursday 12:00 p.m. - - 8 - 10 - 12 9 - 13 11 8 PUBLIC SAFETY COMMITTEE 2nd Monday 9:00 a.m. - - 12 - 14 - 9 13 - - 8 12 HOMELESSNESS COMMITTEE 3rd
Wednesday 10:00 a.m. - - 21 - 16 - 18 15 - 19 17 21
GENERAL ASSEMBLY Last Monday
in June 6:00 p.m. - - - - - - - - - - - 26
H = Holiday * = Special Meeting AGENDAS CAN BE FOUND AT: www.cvag.org. UPDATED: June 20, 2022 PLEASE NOTE: When it becomes necessary to have a special meeting or to change the date of a meeting, committee members will be alerted and the change will be noted on the CVAG website calendar.
ITEM 8E
STAFF REPORT
Subject: DCE’s 2022 Summer Readiness Outreach Strategy
Contact: Liz Barnwell, Management Analyst ([email protected]) Recommendation: Information
Background: The summer of 2021 once again saw sustained high temperatures that impacted the Coachella Valley, leading to renewed calls statewide about encouraging residential and business customers to do their part to reduce energy demands on the grid. High temperatures have arrived and the need to conserve energy during periods of extreme heat is anticipated in the summer of 2022. The California Independent System Operator (CAISO), California Public Utilities Commission (CPUC), and California Energy Commission (CEC) are annually asking Community Choice Aggregation providers such as DCE to report on their existing efforts to address the increased need to reduce higher energy use that occurs in the summer and continue the summer readiness strategy.
DCE staff continues working with CalCCA and other CCAs to address summer readiness planning and messaging to customers. Flex Alerts, which are issued by the CAISO to request the public to voluntarily conserve electricity in times of combined high demand and low energy supply, generally are issued with only few days – or even hours - of notice. DCE is working with its outreach coordinator, Burke Rix Communications, to prepare its messaging in advance of forecasted heat waves and to ensure all Flex Alert messages are passed on to the public as quickly as possible.
DCE staff anticipates a summer outreach strategy similar to last year’s program to encourage customers to reduce energy use, especially during peak hours. Given the immediacy and urgency of the CAISO Flex Alerts, DCE – like the majority of CCAs – will rely heavily on social media to promote these messages. DCE staff is working closely with its communication team, Burke Rix, to implement this outreach strategy with a heavy emphasis on reducing energy use during peak operating hours, which are typically between 4 p.m. to 9 p.m. DCE’s public outreach educates and encourages customers to avoid peak hours by letting them know what times are best for using energy intensive appliances like washing machines and dishwashers, as well as best times to charge electric vehicles. DCE will continue to work with member agencies to encourage their residents and businesses to reduce consumption. The outreach team is broadcasting through various social media channels helpful tips and tricks on saving money and energy this summer.
In addition, the attached Ways to Save Energy flyer shared with the Board in April will be distributed at public locations in Palm Springs. DCE will aim to expand its audience by working with other social media accounts and will be coordinating with the Cities of Palm Springs and Palm Desert throughout the summer.
Earlier this month, DCE staff also joined workshops on Zoom that Southern California Edison hosted for the public in this region on Time-of-Use billing and ways to reduce energy use during peak periods. The June 3 presentation was done in Spanish, and the June 6 presentation was in English.
Desert Community Energy Board
June 29, 2022
In addition, DCE has updated its web page dedicated to saving money and energy. Customers can visit this site https://desertcommunityenergy.org/save-money-energy/ to learn about energy saving programs offered and cost saving tips to help them survive the heat and lower their electric bills. Links to Flex Alert, SCE’s rotating outage page, Public Safety Power Shutoff (PSPS), and other websites are also on the website as part of the summer readiness outreach.
DCE has been working with OhmConnect since November 2021 on outreach to encourage residential customers to avoid peak hours to save energy and money. DCE continues to promote OhmConnect’s 2022 Spring/Summer outreach campaign to our customers via email, social media, and other outreach. Through the partnership with OhmConnect, customers are incentivized to switch out old thermostats with new ones and use smart plugs. The program lets customers know when they need to turn things off and rewards them with points when they meet OhmConnect hours. Customers who enroll in OhmConnect’s demand response program can receive prizes and rewards such as gift certificates and even cash. This program will continue through June 30, 2022.
Fiscal Analysis: DCE has an existing contract with Burke Rix. The cost for the summer readiness outreach strategy have been incorporated under the marketing & outreach costs in the Fiscal Year 2022/2023 Budget, which is being recommended for adoption at the June meeting. DCE staff estimates that the costs associated with this outreach strategy will be between $3,000 to $5,000 for a summer social media campaign.
Attachment: “Ways to Save” flyer
Here are tips to saving both money and energy:
Ways to Save with Time-of-Use
Run your dishwasher, washer, and dryer in the morning, early afternoon (before 4:00 p.m.!), or after 8:00 or 9:00 p.m.
The time of day when you use electricity is as important as how much electricity you use.
Working with nature, you can use less energy and save more money. Using the renewable power of the sun during the day and wind during the night also provides you a level of energy independence. Time-of-Use, or TOU, plans allow you to take advantage of lower electricity rates by avoiding the peak hours between 4:00 and 9:00 p.m., depending on your chosen plan.
It’s best to set your pool pump to run 4 to 6 hours in the morning or after 9:00 p.m.
Pre-cool your home in the morning and set your thermostat to 78 degrees (or higher) later in the day.
Best time to charge your electric or plug-in hybrid vehicle is after 9:00 p.m. (or during the day before 4:00 p.m. if you have a solar PV system generating more energy than you use then).
More ways to save with Time-of-Use Plans:
More information from SCE:
DCE has lots of tips to help you save more:
https://www.sce.com/residential/rebates-savings/Ways-to-Save-with-Time-of-Use-Plans https://www.sce.com/residential/rates/Time-Of-Use-Residential-Rate-Plans https://desertcommunityenergy.org/save-money-energy/
Aquí brindamos algunos consejos para ahorrar dinero y cuidar la energía:
Formas de ahorrar dinero con el harario de uso
Use el lavavajilla, la lavadora y la secadora en la mañana, temprano por la tarde (antes de las 4.00 PM) o después de las 8.00 o 9.00 p.m.
El horario en el que se usa la electricidad es tan importante como la cantidad de energía que se consume. Si trabajamos a la par de la naturaleza, podremos usar menos energía y ahorrar dinero. El uso de la energía renovable del sol durante el día y del viento durante la noche también nos otorga un determinado nivel de independencia energética. Los planes de horario de uso (o TOU, en inglés) permiten aprovechar las tarifas de servicio eléctrico más bajas al evitar el consumo durante el horario pico de las 4.00 a las 9.00 PM, según el plan elegido.
Es mejor configurar la bomba de la piscina para que funcione entre 4 y 6 horas en la mañana o después de las 9.00 p.m.
Enfríe previamente su hogar por la mañana y configure el termostato en 78 grados (o más) más tarde durante el día.
El mejor horario para cargar o enchufar vehículos híbridos es después de las 9.00 p.m. (o durante el día, antes de las 4:00 pm, si tiene un sistema solar fotovoltaico que genera más energía de la que utiliza entonces).
Más información sobre formas de ahorrar dinero con los planes de horario de uso:
Más información de SCE:
DCE tiene muchas recomendaciones para ahorrar más:
https://www.sce.com/residential/rebates-savings/Ways-to-Save-with-Time-of-Use-Plans https://www.sce.com/residential/rates/Time-Of-Use-Residential-Rate-Plans https://desertcommunityenergy.org/save-money-energy/