Executive Committee Meeting
Wednesday, April 3, 2024
12:00 P.M.
Public comments may be made in person or remotely via the details below. 1125 Tamalpais Avenue, San Rafael, CA 94901 (MCE)
2300 Clayton Road, Suite 1150, Concord, CA 94920 (MCE)
391-5 Kagiyacho, Shimogyo Ward, Kyoto,Kyoto, Japan (Danville) Remote Meeting Participation for Members of the Public
Video Conference: https://t.ly/DnY7U
Phone: Dial (669) 900-9128, Meeting ID 861 2234 3784, Passcode 415565 Agenda Page 1 of 2
1. Roll Call/Quorum
2. Board Announcements (Discussion)
3. Public Open Time (Discussion)
4. Report from Chief Executive Officer (Discussion)
5. Consent Calendar (Discussion/Action)
C.1 Approval of 3.6.24 Meeting Minutes
6. Virtual Power Plant Ten Year Vision (Discussion)
7. Achieving MCE’s Mission by Addressing Risk (Discussion)
8. Committee & Staff Matters (Discussion)
9. Adjourn
QMCE ~r::ri:~r~ng
Energy Future
CONTRA COSTA I MARIN I NAPA I SOLANO
MARIN COUNTY I NAPA COUNTY I UNINCORPORATED CONTRA COSTA COUNTY I UNINCORPORATED SOLANO COUNTY
BENICIA I CONCORD DANVILLE I EL CERRITO I FAIRFIELD I HERCULES I LAFAYETTE I MARTINEZ I MORAGA I OAKLEY
PINOLE I PITTSBURG I PLEASANT HILL I RICHMOND I SAN PABLO I SAN RAMON I VALLEJO I WALNUT CREEK The Executive Committee may discuss and/or take action on any or all of the items listed on the agenda irrespective of how the items are described.
DISABLED ACCOMMODATION: If you are a person with a disability who requires an accommodation or an alternative format, please contact MCE at (888) 632-3674 or [email protected] at least 72 hours before the meeting start time to ensure arrangements are made.
DRAFT
MCE EXECUTIVE COMMITTEE MEETING MINUTES
Wednesday, March 6, 2024
12:00 P.M.
Present: Sally Wilkinson, City of Belvedere
Eli Beckman, Town of Corte Madera, joined at 12:10 pm
Cindy Darling, City of Walnut Creek
David Fong, Town of Danville
Gabriel Quinto, City of El Cerrito
Max Perrey, City of Mill Valley
Eduardo Martinez, City of Richmond
Absent: Maika Llorens Gulati, City of San Rafael
Devin Murphy, City of Pinole
Shanelle Scales-Preston, City of Pittsburg
Holli Thier, Town of Tiburon
Staff
& Others: Jesica Brooks, Board Clerk and Executive Assistant to the COO John Dalessi, Consultant, PEA
Vicken Kasarjian, Chief Operating Officer
Tanya Lomas, Internal Operations Assistant
Lindsay Meehan, Manager of Human Resources
Catalina Murphy, General Counsel
Ashley Muth, Internal Operations Assistant
Justine Parmelee, Director of Internal Operations
Garth Salisbury, Chief Financial Officer & Treasurer
Daniel Settlemyer, Internal Operations Coordinator
Maira Strauss, Manager of Finance
Jamie Tuckey, Chief of Staff
Dawn Weisz, Chief Executive Officer
1. Roll Call
Chair Perrey called the regular Executive Committee meeting to order at 12:02 p.m. with quorum established by roll call.
2. Board Announcements (Discussion)
There were no comments.
3. Public Open Time (Discussion)
Chair Perrey opened the public comment period and there were no comments.
DRAFT
4. Report from Chief Executive Officer (Discussion)
CEO, Dawn Weisz, introduced this item and addressed questions from Committee members.
5. Consent Calendar (Discussion/Action)
C.1 Approval of 12.6.23 Meeting Minutes
C.2 Proposed Third Amended and Restated Schedule A.2 to the Master Services Agreement with Association for Energy Affordability C.3 Proposed Amended and Restated Energy Storage Service Agreement with Cormorant Energy Storage, LLC
Chair Perrey opened the public comment period and there were no comments.
6. Proposed Fiscal Year 2024/2025 Budget (Discussion/Action) Garth Salisbury, Chief Financial Officer & Treasurer, and Maira Strauss, Manager of Finance, presented this item and addressed questions from Committee members.
Chair Perrey opened the public comment period and there were no comments.
Action: It was M/S/C (Quinto/Beckman) recommend approval of the proposed Fiscal Year 2024/25 budgets and the creation of the Asset Acquisition Fund to the full Board. Motion carried by roll call vote. (Abstained: Fong, and Wilkinson, Absent: Directors Darling, Gulati, Murphy, Scales-Preston, and Thier).
7. Review Draft 3.21.24 Board Agenda (Discussion)
Jamie Tuckey, Chief of Staff, presented this item and addressed questions from Committee members.
Chair Perrey opened the public comment period and there were no comments.
Action: No action required.
8. Committee Matters & Staff Matters (Discussion)
Comments were made by Directors Quinto, and Wilkinson.
Action 1: It was M/S/C (Martinez/Fong) to approve Consent Calendar items C.1 and C.2. Motion carried by unanimous roll call vote. (Absent: Directors Gulati, Murphy, Scales-Preston, and Thier).
Action 2: It was M/S/C (Beckman/Martinez) to approve Consent Calendar item C.3. Motion carried by unanimous roll call vote. (Absent: Directors Gulati, Murphy, Scales-Preston, and Thier).
DRAFT
9. Adjournment
Chair Perrey adjourned the meeting at 2:59 p.m. to the next scheduled Executive Committee Meeting on April 3, 2024.
___________________________________________
Max Perrey, Chair
Attest:
___________________________________________
Dawn Weisz, Secretary
1 Virtual Power Plant
Ten Year Vision
April 2024
ONTRA COSTA
Lead California to an equitable, clean, affordable, and reliable energy economy by serving as a model for
community-based renewable energy, energy efficiency,
and cutting-edge clean-tech products and programs.
VISION
MISSION Confront the climate crisis by eliminating fossil fuel greenhouse gas emissions, producing renewable energy,
and creating equitable community benefits.
VALUES Innovation: We fight climate change with leading edge, community-centered programs and policies.
Equity: We prioritize environmental and economic justice for communities of concern.
Accessibility: We serve our communities and customers through open and transparent engagement.
Inclusivity: We celebrate diverse identities at work and in our communities.
Sustainability: We strive for a sustainable workplace, community, and planet.
Fiscal Responsibility: We maintain financial strength to deliver sustainable programs and rates. 2
Market
Challenges
MCE’s ‘peaky load’ results
from widespread solar,
causing customer demand
spikes in late afternoon to
early evening as solar power
ramps down and household
electricity use surges.
This is what we call the
“duck’s neck.”
Addressing the Over-Generation of Solar
Energy
3 California's duck curve is getting deeper
CAISO lowest net load day each spring (March-May, 2015-2023), gigawatts 25 20
15 10
5 0
12 AM 2 AM 4 AM 6 AM 8 AM 10 AM 12 PM 2 PM 4 PM 6 PM 8 PM 10 PM Evolving Settlement Requirements
- Managing energy in shorter time frames requires
faster controls to keep up with supply and
demand changes.
- Resource matching for 24x7 settlement to ensure
energy supply matches the energy demand on
a continuous basis, every day of the week, all
year round.
- As California retires natural gas power plants, we
need new tools so grid operators can match
load / supply on a 4 second basis.
Market
Challenges
‘Settlement’ in energy markets
is the process of reconciling all
transactions between
electricity suppliers and
customers, ensuring accurate
payment to generators and
billing for customers.
Settlement processes can
vary in frequency, from hourly
to daily, and involve complex
calculations.
4 Managing Rising Costs
- New purchasing rules, or procurement
mandates, mean that suppliers can keep their
prices artificially high since they know we’re
required to buy it. Without a limit on what they
can charge, prices can go up significantly for
securing reliable energy sources.
- We face increased expenses for maintaining
energy reliability (resource adequacy) while
intense competition for green energy sources is
intensifying.
- The process to connect to the energy network
(interconnection) is becoming longer,
impacting our ability to bring new sources online
efficiently.
Market
Challenges
5 What is a Virtual Power Plant
Keeping the Balance
Instead of an industrial power
plant taking up a lot of land, this
connects many smaller physical
assets throughout a community.
A VPP taps into existing distributed
energy resources - solar, smart
thermostats, smart plugs, batteries,
electric vehicles - and sends them
digital signals to charge up or
release power to the grid at
strategic times.
It quietly and invisibly creates
pockets of power to support and
decarbonize the grid.
6 Fossil
Fuels
Solar
CAISO /BALANCING AUTHORITY
±0.50%
Wind Batteries
Geo-thermal
SUPPLY (Utility Scale Resources) DEMAND (Behind the Meter Load) In 10 years, build a new paradigm of
People Power
Weave together MCE’s incredible programs to
create a “spectrum of controllability.”
Community members engage at various levels
to optimize value through controllable devices
and behavior change.
Share value of a suite of DERs with MCE
customers while competing against for-profit
3rd parties to:
- alleviating pressure on MCE power
procurement
- creating bill savings for customers
- creating value for MCE
- promoting local grid health with smart
devices
All inclusive
Solution
Dispatchable
Resources
Energy
Efficiency
(non-dispatchable)
Demand
Response PeakFlex
Virtual Power Plant
7 Direct MCE
Benefits
Cost benefits:
- Smaller up front investment than large
power plants
- Allows for distributed and incremental
solutions to closely match demand growth
- Mitigates the risk of transmission or
distribution (T&D) bottlenecks where
significant power is locked behind
congested T&D corridors
- Use power where it’s needed - tap into
inherent benefits of co-location of demand
and supply
- Closed loop of value - customer generates
and shares value with MCE which then
returns to the customer
8 Direct MCE
Benefits
Settlement benefits:
- Access real-time device data
- Facilitates time-sensitive peak load
reductions
- Reduces associated procurement &
resource adequacy obligations
9 Benefits of a
VPP
- A decade of MCE programs means our
communities have years of upgrades that
can be integrated into the VPP to generate
additional value for the customer
- Lots of install jobs, especially important in
Disadvantaged Communities (DAC)
- Modernized building stock, including with
energy resilience
- Reduce demand for polluting peaker plants
- Reduce emissions of entire system due to
localized usage of power
- Value sharing tariff transforms passive
consumers into a active agents of grid health
- Increased customer awareness and
participation in the energy system
- Cost savings from more efficient usage as
well as from bill credits
Direct
Community
Benefits
10 Implementation
11 “No customer left behind” - Multiple strategies - Meet people where they are Solar Storage
Credit
MCE Sync
Peak
Flex
Energy
Storage
Program EE and
Electrification
Retrofits
Richmond
VPP model
Less Control More Control
MCE VPP
\ I
Next Steps (part 1)
Richmond VPP:
● 1.5MW Flex Load + 1 MW Solar + 2MWh batteries
● Use OpenADR DERMS to monitor and dispatch
● Bid Capacity and Energy into Day Ahead Markets
MCE Sync:
● 7,000 Vehicles by June 2025
● Shift 95% of EV Charging Load out of Peak Hours
● Bid into Day Ahead Market
● Incorporate Dynamic Pricing Signals
Peak Flex:
● Build on the 3MW of demand reduction achieved in 2022 ● Focus on storage, building control systems, EV chargers 12 Next Steps (part 2)
Energy Efficiency Programs:
● Single family homes: Install 280
heat pump water heaters
(HPWH), 100 smart thermostats,
300 HAN devices
● Build local capacity for HPWH
installs through workforce
training programs
● Multifamily Properties: 300+
HPWHs and 200 smart
thermostats
Energy Storage Program:
● Initial Launch: 1.2 MWh
residential installs (complete) &
4.5 MWh batteries at Non-Res
Critical Facilities. Collect usage
data and issue performance
payments
● Phase 2: 2.5 MWh batteries at
C&I facilities, integrated into
Open ADR DERMS to monitor
and dispatch.
13 14
2032 Average hourly profile
900 ~ ----------------------------------------~
800 -------------------------------------------------------------------------------- 700
600
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300
200 -------- -------------------------------------------------------------------------------------------------- 100 ---------------------------------------------------------------------------------------------------------------------- Hours
--Load --Generation Portfolio
Closing Remarks
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