Peninsula Clean Energy
Board of Directors Meeting
November 17, 2022
Peninsula Clean Energy
Agenda
• Call to Order / Roll Call
• Public Comment (for items not on the Agenda)
• Action to set the Agenda and Approve Consent Items 1-4 o Consent - Public Comment
• Regular Agenda
• Adjournment
Chair Report (Discussion)
CEO Report (Discussion)
Peninsula Clean Energy
Staffing Update
Open Positions:
• Director of Power Resources
New Hires:
• Brooke Morales, Senior Marketing
Communications Specialist, starting
Nov. 21
• Justine Pine, Strategic Accounts
Manager, starting Nov. 28
Peninsula Clean Energy
Regulatory Updates
• NEM 3.0 Proposed Decision (PD)
issued on November 10
o Comparison to last year’s PD that was
widely protested
• Projected PCIA Update
o Latest information from PG&E is PCIA will
be close to zero or negative in 2023 for
2016 and 2021 vintages; small PCIA for
2022 vintage
6 Peninsula Clean Energy
Solar+Storage on Public Buildings
• First cohort of 15 projects in 13 jurisdictions
o Customer PPA almost finalized
o EPC contract coming to Board in December
• Looking for projects for next cohort
o Other city facilities
o Other public facilities – school districts, water
treatment and waste treatment facilities, transit
agencies
o Please contact us if with contact information of
interested parties
7 Peninsula Clean Energy
News from Sacramento
• Election Update
o Assembly Speaker(s) for 2023
• AB 361 Emergency Meetings
end Feb 28, 2023
8 Peninsula Clean Energy
PCE Ad Hoc Subcommittees
• Any interest in serving on:
oAd hoc Legislative
Subcommittee
oAd hoc Subcommittee on
Emeriti Board Positions
9 Peninsula Clean Energy
“Retiring” Board Members
For some Board Members, this will be their
final meeting with Peninsula Clean Energy.
Our sincerest gratitude for all you have
contributed during your time on our board.
We will recognize all retiring board members
and alternates at our December meeting. Larry May Giselle Hale Laura Parmer-Lohan Rick Bonilla Carole Groom (earlier this year) 10 Peninsula Clean Energy
Upcoming Meetings
• Citizens Advisory Committee:
o December 1 at 6:30 p.m. (Zoom)
• Executive Committee:
o December 5, at 10:00 a.m. (Zoom)
• Board of Directors:
o December 15 at 6:30 p.m. (Zoom)
• Audit and Finance Committee:
o February 13, 2023, at 8:30 a.m. (Zoom)
CAC Report (Discussion)
Approve the Audited Financial
Statements for Fiscal Year 2021-2022
November 17, 2022
Peninsula Clean Energy
Auditor Conclusions
• Auditor Required Communications Findings/Summary
• Unmodified opinion – The financial statements are materially accurate • No significant deficiencies or material weakness in internal control noted • The significant accounting policies adopted by PCE throughout the periods audited appear appropriate and consistently applied
• No significant or unusual transactions or applications of accounting principles where a lack of authoritative guidance exists
• No disagreements with management concerning the scope of audits, the application of accounting principles, or the basis for management’s judgments on any significant matters
14 Peninsula Clean Energy
Summary & Recommendation
• Audit & Finance Committee – October 12, 2022
• Reviewed draft financial statements
• Met with Auditors
• Approved resolution recommending approval by Board of Directors • Audit complete and signed off on November 8, 2022
Recommendation:
• Approve the Audited Financial Statements for Fiscal Year 2021-2022 15 Adopt Staff’s Recommendation on
Delivering 100% Renewable Energy
Annually on a 99% Time-Coincident Basis
November 17, 2022
Peninsula Clean Energy
Recommendation
• Adopt Staff’s Recommendation on Delivering 100%
Renewable Energy Annually on a 99% Time-Coincident
Basis
17 Peninsula Clean Energy
Strategic Plan
18 ORGANIZATIONAL PRIORITIES:
By 2025, deliver 100% renewable
energy each and every hour of day.*
Contribute to our community reaching a
goal of 100% greenhouse gas-free in
buildings and transportation by 2035.
Peninsula Clean Energy
Progress to Date
2016
- Peninsula Clean Energy sets
100% renewable goal
2017
- Peninsula Clean Energy sets
24/7 100% renewable goal
2018-2019
- Procure resources and conduct
preliminary analysis
2020
- Begin development of 24/7
planning model
- Get preliminary modeling results
refine model
2021
- Publish White Paper, Part I
- Finalize model development and
analyze results
- Board Retreat and Subcommittee
Updates
- Convene external advisory group
2022
- Finalized modeling work
- Shared 24/7 strategy recommendation
with the board
- Developing Part II of the White Paper
19 Peninsula Clean Energy
Why do we have this goal?
• Peninsula Clean Energy currently delivers to all of our customers electricity that is 100% from GHG-free or renewable resources on an annual basis
• Our goal is to match our electricity supply to consumer load on an hourly basis
o We will not be relying on system power (methane gas plants) and can maximally reduce GHG emissions from our electricity supply • Peninsula Clean Energy wants to take the lead to show it’s possible to provide hourly renewable energy in a cost-effective way 20 Peninsula Clean Energy
2021 Peninsula Clean Energy 24/7 Emissions Footprint
due to use of California grid energy
Hour of
Day
12am
6am
12pm
6pm
11:59pm
Day of Year
Jan 1 Apr 1 Jun 1 Oct 1 Dec 1
Color Scale: lbs CO2 / MWh of Carbon Emissions
21 Peninsula Clean Energy
Phasing our time-coincident renewable goal
Phase 1
(by 2025)
• Use Planning Forecasts
• Target time-coincident renewable energy using
planning forecasts
Phase 2
(beyond 2025)
• Use Real-Time Data
• Continue to evaluate the cost/benefit of delivering
time-coincident renewable energy in real-time
22 Peninsula Clean Energy
Modeling Approach
23 Scenario Design
MATCH model
(Deterministic
Portfolio Planning)
Analyze results
PowerSimm model
(Stochastic
Portfolio Analysis)
Analyze results
Final
Recommendation
Peninsula Clean Energy
Renewable Goal Scenarios
24 Peninsula Clean Energy
New Capacity Required to Add to our Portfolio
• New capacity required
to be added to our
portfolio generally
increases as time-coincident target
increases.
• More firm resources are
needed at higher time-coincident targets.
25 Peninsula Clean Energy
Cost of Time-Coincident Procurement
26 • Based on our analysis, time-coincident renewable energy procurement up to 99% can be achieved with only 2% cost increase
Scenario Difference in Expected Cost of Energy*
relative to Current Portfolio (%)
Current Portfolio 0%
Annual 100% -1%
Hourly 90% 0%
Hourly 95% 1%
Hourly 99% 2%
Hourly 100% 12%
Peninsula Clean Energy
• Increasing our time- coincident target will reduce
our hourly carbon intensity
* The hourly carbon intensity
accounts for our use of grid
energy in some hours, and
does not give us "credit" for
supplying excess energy in
other hours
** This method is anticipated to
be similar to the method
adopted in SB 1158 (Becker)
Emissions Reductions: Hourly Carbon Intensity
27 Peninsula Clean Energy
Effects on Grid: System Net Peak
• Our portfolios reduce the
net peak, which improves
the entire grid system
operations
28 Peninsula Clean Energy
70 75
80 85
90 95
100
Sim u lation s
Plan n ed
% Tim e -coincide nt
29 • In real-time
operations, the
portfolios fall short of
the time-coincident
target by 1% to 3%,
due to variability in
load and generation.
Real-Time Operations: Time-coincident performance
Peninsula Clean Energy
Summary
• Time-coincident renewable procurement can be cost-effective under a variety of market conditions
o Based on our analysis, 99% time-coincident would increase our cost by 2% compared to our current portfolio
o 100% time-coincident could increase our cost of energy significantly • Procuring time-coincident renewable energy results in benefits to the society by reducing emissions and improving grid impacts
30 Peninsula Clean Energy
Recommendation
• Adopt Staff’s Recommendation
on Delivering 100% Renewable
Energy Annually on a 99% Time-Coincident Basis
31 Approval of Seventh Amended and Restated
Agreement Between Peninsula Clean Energy
Authority and Chief Executive Officer (Action)
November 17, 2022
Board Members’ Reports (Discussion)
Adjournment
Peninsula Clean Energy