Executive Committee Meeting
December 5, 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
o Public Comment
• Regular Agenda
• Committee Members Reports
• Adjourn
Chair Report
Item 4
CEO Report
Item 5
Peninsula Clean Energy
Staffing Updates
Welcome to:
o Brooke Morales, Senior Specialist, Marketing Communications o Justin Pine, Strategic Accounts Manager
Open Positions:
oDirector of Power Resources
5 Peninsula Clean Energy
Other Updates
• Solar and Storage on Public Buildings:
o Seeking public building sites for cohort 2
• Meetings with each jurisdiction (city manager, PCE Board Member, PCE Alternate) ongoing
• Recognition of retiring Board members at Dec 15 Board meeting 6 2023 Rate Change
Discussion
Peninsula Clean Energy Executive Committee
December 5, 2022
Peninsula Clean Energy
PCE Standard Ratemaking Process
((PG&E Bundled Gen rate)*0.95)-PCIA-FFS
=PCE Gen rate
PCE Gen Rate + PCIA + FFS= net 5% discount from PG&E Gen Rate 8 Peninsula Clean Energy
Maintaining 5% Value Proposition to New Customers
• PCIA Vintage year for San Mateo County is 2016
o Bulk of customers in SMC transitioned to PCE during the 2016 Vintage year o 2016 PCIA and FFS are used to calculate PCE rates for SMC • Los Banos primarily enrolled during 2021 Vintage year o Small number of NEM customers enrolled in 2022 Vintage year due to rolling NEM enrollment (~1000 customers)
o Los Banos PCE rates were initially calculated using 2021 PCIA and FFS to ensure LB customers also received a net 5% discount from PG&E • Going forward PCE anticipated needing to maintain two sets of rates so customers in each territory would receive a 5% discount 9 Peninsula Clean Energy
2023 Rate Filings Project Negative PCIA for Some
Vintages
• October update for 2023 ERRA proceeding forecasted negative PCIA rates for Vintages 2016 and 2021 and positive rates for Vintage 2022 • Annual Electric True-up (AET) filing from November 15th shifted projections so that only Vintage 2021 is negative
• Rates will change again when final advice letter is filed at the end of December, 2016 may end up being negative in final tariff update 10 2016 2021 2022
(0.00256) (0.00796) 0.01077
2016 2021 2022
0.00098 (0.00455) 0.01383
Peninsula Clean Energy
What if PCIA is Negative?
• If PCIA is negative, propose we modify PCE rate calculation process to allow customers to keep the PCIA credit on PG&E side of the bill ((PG&E Bundled Gen Rate)*0.95)-(-PCIA)-FFS
((PG&E Bundled Gen Rate)*0.95)+PCIA-FFS
((PG&E Bundled Gen Rate)*0.95)-FFS=PCE Rate
Net Effect > 5% discount
11 Peninsula Clean Energy
E1 Rate Example 2021 PCIA Vintage
• Standard Rate Calculation:
((0.15683)*0.95)-(-0.00455)-(0.00117)
=(0.14899)+(0.00455)-(0.00117)
=(0.14899)+(0.00338)
=0.15237 PCE Rate Net Discount 5%
• Modified Rate Calculation
((0.15683)*0.95)-(0.00117)
=(0.14899)-(0.00117)
=0.14782 PCE Rate Net Discount 5.75%
12 Peninsula Clean Energy
Ratemaking With Both +/- PCIA Vintages
• 2023 rates will not be known until final advice letter is filed on December 30th 2022
• However, we do know that we will have both positive and negative PCIA rates for our customers in Los Banos (Vintage 2021 and 2022) • San Mateo County (Vintage 2016) will be very close to a $0 PCIA, but it could be either +/-
• Flexibility to use both the standard or modified ratemaking process depending on final rates is ideal
13 Peninsula Clean Energy
Minimizing Rate Complexity
• Ideally continue to maintain at most two rate schedules for PCE customers
o One rate for San Mateo County and Los Banos Vintage 2021 customers o One rate for Los Banos Vintage 2022 customers
• Effective discounts for each customer group
o Los Banos 2022 customers will have a 5% discount
o Los Banos 2021 customers will have a slightly more than 5% discount o San Mateo County customers will have at least a 5% discount (more than 5% if 2016 PCIA is negative)
• Majority of PCE customers would all be on the same rate schedule 14 Peninsula Clean Energy
Request to Board
At the December Board meeting staff plans to request flexibility to apply either our standard or the proposed modified rate making process to calculate PCE rates based on PCIA impact by Vintage and allow customers with negative PCIA to keep the credits as an extra discount.
15 Discussion on Net Energy Metering
(NEM) 3.0 Proposed Decision
Peninsula Clean Energy Executive Committee
December 5, 2022
Committee Members’ Reports
Item 8