Peninsula Clean Energy
Board of Directors Regular Meeting
6:30 p.m.
May 25, 2023
Peninsula Clean Energy
Agenda
• Call to Order / Roll Call
• Public Comment (for items not on the Agenda)
o Please note, send any chats to Board Clerk, Nelly Wogberg • Action to set the Agenda and Approve Consent Items 1-2 o Consent - Public Comment
• Regular Agenda
• Adjournment
Chair Report (Discussion)
CEO Report (Discussion)
Peninsula Clean Energy
Topics to be Covered Tonight
• Staffing Update
• Legislative Update
• CalCCAAnnual Conference
• Upcoming Meetings
Peninsula Clean Energy
Staffing Updates
Currently posted on PCE website:
• Power Resources Analyst/Specialist
• Account Services Specialist
We are hiring 7 summer interns.
o Offers made and accepted for 3
o Offer awaiting acceptance for 1
o Final interviews wrapping up for 3
Coming Soon: Senior Manager of Local Power Development
Peninsula Clean Energy
Legislative Update
• SB 537 (Becker) to amend Brown
Act – PCE is sponsor
• AB 1373 (Garcia) - DWR to be
central procurement entity and
CPUC jurisdiction over CCA IRPs
• AB 538 (Holden) to expand CAISO
as a multi-state regional
transmission system
Peninsula Clean Energy
CalCCA Annual Conference
• Community Impact Awards:
o PCE awarded 1st place in the Equity category with Outreach Grants Program o PCE was a runner-up in the Decarbonization category with Reach Code Initiatives 8 Peninsula Clean Energy
Volunteering in the Community
• At the April All-Staff meeting,
Staff worked as a team to put
together 398 hygiene kits for
the Samaritan House in San
Mateo
• On May 12th, PCE Staff worked
with Second Harvest Food
Bank to help sort 25,500 lbs of
produce
9 Peninsula Clean Energy
Upcoming Meetings
• Citizens Advisory Committee:
o June 8 at 6:30 p.m. (In-person and zoom)
• Audit and Finance Committee:
o June 12 at 8:30 a.m. (In-person and zoom)
• Executive Committee:
o June 12 at 10:00 a.m. (In-person and zoom)
• Board of Directors:
o June 22 at 6:30 p.m. (In-person and zoom)
CAC Report
Diversity, Equity, Accessibility
and Inclusion Action Plan
Review
May 2023
Peninsula Clean Energy
Outline of Presentation
1. DEAI Policy Commitment Review
2. Development of the DEAI Action Plan
3. Plan Outline and Structure
4. Key Actions
5. Overview of Appendices
6. Recommended Action
13 Peninsula Clean Energy
Peninsula Clean Energy's DEAI Commitment
"Peninsula Clean Energy has a vision of a sustainable world with clean energy for everyone.
We recognize there are longstanding systemic barriers that impede the advancement of fair and inclusive policies and limit the full participation of historically underserved and disadvantaged communities. This includes our stakeholders that face the most adverse impacts from economic, health, and environmental burdens.
Peninsula Clean Energy recognizes that we have an obligation to maximize our efforts to eliminate disparities and ensure that our programs, policies, and practices are inclusive and accessible for everyone in the geographic markets we serve."
14 Peninsula Clean Energy
DEAI Commitment Continued
"Peninsula Clean Energy commits to making diversity, equity, accessibility, and inclusion a priority during decision making.
We firmly uphold anti-racism, anti-discrimination, diversity, equity, accessibility, and inclusion as core values.
The Peninsula Clean Energy team, including all staff, Board of Directors, committees, and community groups, is committed to this DEAI Policy.
This policy is a foundation for operating our business and Peninsula Clean Energy’s goals as detailed in the Strategic Plan 2020-2025." - Peninsula Clean Energy's DEAI Policy (Policy 22)
15 Peninsula Clean Energy
Action Plan Development
• Implements PCE's DEAI Policy passed Oct 2022
• Includes recommendations from needs assessment and stakeholder engagement phase
• Developed by equity consultants GCAP
• Strengthened by staff feedback from all departments
• Feedback from Board DEAI Subcommittee and CAC incorporated • Living document to be updated by staff as needed
16 Peninsula Clean Energy
DEAI Action Plan Outline
Executive Summary
Foundation for Strategic Goals
Purpose and Elements
Gap Analysis Summary
Action Plan (43 Actions touching all departments)
Getting Started and Evaluation
Appendices
17 Peninsula Clean Energy
Foundation of Strategic Goals
18 Peninsula Clean Energy
Area of Focus DEAI Goal Description
Organizational Culture and
DEAI Commitment
Advance DEAI within PCE’s workforce, business practices, policies, and programs.
Human Resources, Staffing,
and Recruitment
Create a workforce that is more representative; provide equitable access to employment opportunities for underrepresented members of our communities.
Training and Development
Require employees to complete DEAI related training, and encourage Board and CAC members to do so as well.
Energy Program Development
and Implementation
Define energy equity and set goals and metrics for achieving it through our programs.
Increase input and feedback from diverse and low-income communities.
Marketing and Account
Services
Improve awareness, communication, and accessibility of PCE customer service, among low-income, disadvantaged, and limited English proficiency customers.
Vendor and Energy Supplier
Diversity and Social
Responsibility
Ensure that the vendors and suppliers that do business with PCE are environmentally conscious and have equitable business practices. Create opportunities and eliminate barriers to equal participation for all vendors.
19 Exhibit 1: PCE DEAI Area of Focus & DEAI Goal Description Peninsula Clean Energy
Organizational Culture and DEAI Commitment
Advance and promote diversity, equity, accessibility, and inclusion within PCE’s workforce, business practices, policies, and programs.
20 Establish a DEAI
Action Plan
Dashboard within the
Strategic Plan, and
incorporate into the
annual staff
performance review
process
Deploy a visual, user-friendly dashboard to track
DEAI Action Plan initiatives
and include information on
the following: alignment to
Strategic Plan and DEAI
Policy, lead
department/staff, progress
status, next steps,
recommendations to
improve, etc.
Integrate accountability for
implementing actions
outlined in the DEAI Acton
Plan into staff annual
performance review
process
Q2 2023 DEAI Lead
and Council
Strategic Plan Dashboard
has been deployed and is
tracked on an on-going
basis
All DEAI Action Plan
initiatives have been
assigned to a lead
department/staff to follow
through
Staff annual review process
has been updated to
include a requirement for
specific reporting on each
DEAI action assigned to
specific staff
Deploy a dashboard that is
easily manageable by the
agency (see Appendix C for
an example)
Consider incorporating into
existing Strategic Plan
Dashboard
Dashboard should be
reviewed regularly with
executive leadership team
for awareness, feedback.
Actions Steps Timeline Lead Metrics Recommendations
Peninsula Clean Energy
Organizational Culture and DEAI Commitment 2
21 Actions Steps Timeline Lead Metrics Recommendations
Establish DEAI
Framework for
Decision Making
Develop a list of DEAI
questions to consider and ask
before producing policies,
programs, practices, and
decisions
Q2/Q3 2023 DEAI Council
All employees are aware of these
DEAI questions and have
implemented into daily practices
Consider including the following
questions:
Who is this work positively or
negatively impacting?
Have you considered gender,
race, religion, physical ability,
location, socioeconomics, etc.?
Who could be excluded by this
work?
Does this work impact groups
differently?
What does the data say?
Has this work been
communicated transparently?
Could this work hinder feeling of
belonging, especially in
underrepresented groups?
How will you ensure criteria is
fair and transparent?
Peninsula Clean Energy
Additional DEAI Commitment Actions
• Adopt DEAI Policy
• Adopt DEAI Action Plan
• Form DEAI Council
• Appoint a DEAI Lead
• Annually review and ensure that Peninsula Clean Energy’s Legislative and Regulatory Policy Platform section on environmental justice and affordability is meaningfully implemented • Participate in or monitor CPUC, CARB, and CEC proceedings regarding energy affordability and environmental justice, in dialog with environmental justice networks 22 Peninsula Clean Energy
Human Resources, Staffing, and Recruitment
Create a workforce that is more representative and inclusive of people of all backgrounds; provide equitable access to employment opportunities for underrepresented and underserved members of the communities PCE serves.
23 Actions Steps Timeline Lead Metrics Recommendations
Increase the diversity
of our staff team
Research and diversify
places we advertise our job
opportunities
Analyze workforce needs,
qualifications and work with
hiring managers to determine
bona-fide qualifications
Gather current data to
understand the ethnic,
gender, disability, veteran
composition of our
communities so that PCE
can strive to be reflective
within its workforce
Identify and remove artificial
barriers to entry
Ongoing
Leadership
and Human
Resources
Number of open and filled
positions with diverse
employees
Outreach to diverse
communities during
recruitment
Monitor changes in diversity of
the candidate pool throughout
the interview and hiring
process
Leadership, especially hiring
managers, increased diversity
in the workforce
Prioritize open management
positions, especially senior
manager roles
Use S.M.A.R.T. (specific,
measurable, attainable,
relevant, and time-bound)
goals to establish your
strategic diversity goals
Peninsula Clean Energy
Additional Human Resources Actions
• Finalize and Adopt DEAI Revisions to the Strategic Plan, Employee Handbook, Policy 9, and Policy 10
• Actively Outreach to a Diversity of Communities/Groups in Recruitment Process • Ensure Salary Transparency
• Enhance DEAI in the Application and Interview Process • Integrate DEAI Metrics in Employee Performance Reviews • Launch a Self-ID Campaign
24 Peninsula Clean Energy
Additional Training and Development Actions
• Finalize and Approve DEAI Training Plan (See Appendix D) • Select Training Method & Develop Training Courses
• Provide Training on How to Respond to an Accommodations Request • Provide Training on Community Engagement for Program Planning • Ensure Professional Development Opportunities are Available and Accessible 25 Peninsula Clean Energy
Energy Program Development and Implementation
Define energy equity and set goals and metrics for achieving it through our programs. Increase input and feedback from diverse communities, especially low-income and disadvantaged groups, to improve equity in program development and implementation.
26 Actions Steps Timeline Lead Metrics Recommendations
Create Organizational
Definition of and
Goals for Energy
Equity and
Incorporate into
Programs
• Research energy equity
frameworks and definitions
• Create energy equity
definition, goals, and metrics
for PCE
• Solicit input from community
stakeholders, CAC, and
Board and finalize based on
feedback
• Implement, including
evaluating current and future
programs for how well they
meet these goals and what
changes need to be made
Q2 2023
DEAI Council,
Director of
Programs,
Programs
Team,
Director of
Account
Services
Energy equity definition,
goals, and metrics
drafted
Community input
incorporated from
partners, CAC, and
Board
Definition, goals, and
metrics finalized
Changes made to
programs and budgets
as needed to meet
goals
Engage all members of
the Programs Team in
this effort
Include Account
Services to evaluate the
role of rate structures as
well
Peninsula Clean Energy
Additional Energy Program Actions
• Develop and Finalize a Worksheet Template for Community Engagement in Program Development • Engage with Community Leaders and Community Based Organizations in the Early Stages of Public Facing Program Development
• Review Current Programs for Gaps & Inequities and Continuously Refine Programs to Better Align with Customer Needs
• Develop and implement PCE language and technology access policy for entire customer journey for PCE programs
27 Peninsula Clean Energy
Marketing and Account Services
Improve awareness, communication, and accessibility of PCE customer service, energy supply, and energy programs, especially among low-income and disadvantaged populations, and limited English proficiency groups.
28 Actions Steps Timeline Lead Metrics Recommendations
Develop PCE
Language and
Technology Access
Policy
Survey other agencies’
language and technology
access policies for best
practices
Identify metrics used to
quantify language and
technology isolation across
our service territory, if
available
Draft/amend policy that
incorporates best practices
and addresses language and
technology access needs of
our customers
Q2 2023
Marketing and
Community
Relations
Language and Technology
access policy finalized,
implementation started
Circulate language and
technology access policy to
appropriate CBO
partners/stakeholders to
gather feedback prior to
finalization
Peninsula Clean Energy
Additional Marketing and Account Services Actions
• Ensure that customer awareness surveys include and are reflective of PCE’s diverse customer base
• Ensure PCE public website is accessible
• Develop a DEAI webpage
• Increase accessibility in public meetings
• Increase accessibility and diversity in outreach materials and customer notifications • Ensure customer service representatives provide quality customer service in all PCE priority languages
• Ensure customer email inquiries in PCE priority languages receive accurate responses in same time frame as inquiries in English
29 Peninsula Clean Energy
Vendor and Energy Supplier Diversity
Ensure that the vendors and suppliers that do business with PCE are environmentally conscious and have equitable business practices. Establish a level playing field by creating opportunities and eliminating barriers to equal participation for all vendors.
30 Actions Steps Timeline Lead Metrics Recommendations
Finalize and Adopt
Recommended
Revisions of PCE’s
Contracting
Documents and
Templates
Review contracting
documents and templates
(Contracting Template, RFO,
RFP, and Supplier Diversity
Questionnaire) to identify
potential bias and inequities
in the language
Review and finalize GCAP
suggested edits and updates
to the contracting documents
and templates
Integrate DEAI principles and
commitment into documents
and templates
Q2 2023 Account
Services
Revised documents published
and available to PCE
employees engaged in
procurement activities
All contracting documents and
templates have DEAI
commitment
Review and update these
documents on a regular basis
to keep current with legislative
and regulatory requirements
Notify Primes of commitment
to DEAI
Peninsula Clean Energy
Additional Supplier Diversity Actions
• Finalize and Adopt the Recommendations in the Legislation & Regulatory Analysis Report (See Appendix E) • Finalize and Adopt Recommended Revisions of PCE’s Contracting Documents and Templates • Add Qualitative Questions to RFO Template for Utility Scale Procurements Regarding Environmental Stewardship, Disadvantaged Community Outreach, Workforce Development, Responsible Procurement, and Supplier Diversity
• Adopt Supply Chain Code of Conduct
• Develop and Implement Diverse Subcontractor Reporting • Develop Outreach Materials on How to do Business with PCE and a GO 156 FAQ document • Increase Visibility of Solicitations Webpage
• Conduct Supplier Diversity Training for All Staff
• Encourage Vendors/Suppliers to Practice Equity
• Measure customer satisfaction with customer service provided by vendors 31 Peninsula Clean Energy
Monitoring and Evaluation
32 Action Plan Execution
• Execute and initiate the activities within the DEAI Action Plan and monitor progress.
Team Collaboration
• Collaborate between teams for input and feedback on specific tasks.
Adjust the Work
• If gaps in the monitoring and evaluation process are identified, make adjustments and improvements as necessary.
Annual Review
• Conduct annual reviews to revisit and identify PCE priorities.
Peninsula Clean Energy
Overview of Appendices
A. Gap Analysis
• Areas of focus identified through internal and external stakeholder surveys last summer • Results reviewed with this committee previously
B. DEAI Glossary
C. DEAI Metrics Dashboard Example
D. DEAI Training Plan
E. Legislation and Regulatory Analysis
Review of related laws and regulations that support or inhibit PCE’s DEAI implementation F. Monthly Diverse Subcontractor Paid Report Summary and Payment Verification 33 Peninsula Clean Energy
Training Plan Recommendations
DEAI Basics
4-hour training with outside facilitator, October 2022 Will be offered periodically to new staff as well
Inclusive Leadership
Cultural Competency
How to Be an Ally
Inclusive One-to-One Meetings
Inclusive Hiring
Mitigating Unconscious Bias in Performance Reviews
How to Crawl, Walk, and Run with Diversity Data
Creating and Leading Mentoring Circles
34 The October 2022 all-staff retreat focused on DEAI training Peninsula Clean Energy
Recommended Action
Approve Diversity, Equity, Accessibility and Inclusion (DEAI) Action Plan as a living document to guide staff in implementing the DEAI Policy, and to be updated by staff as needed.
35 FY 2023-2024
(July 1, 2023 – June 30, 2024)
Budget Review
Initial Draft
Peninsula Clean Energy
Schedule – Budget Review and Approval
37 • May 16, 2023 – Reviewed Initial Draft Budget with Audit & Finance Committee • May 25, 2023 – Review Initial Draft Budget with Board of Directors • June 12, 2023 – Review Revised Draft Budget with Audit & Finance Committee • June 12, 2023 – Review Revised Draft Budget with Executive Committee • June 22, 2023 – Approve Final Budget by Board of Directors Peninsula Clean Energy
Draft Budget FY 2023-2024 – Key Assumptions (Page 1 of 2) 38 PG&E Generation Rates – Slight decline in rates for next 4 years o January 1, 2024 – Increase 1%
PCIA Rates – Continuing decrease in rates as of January 1, 2024 o January 1, 2024
o San Mateo – Drop to $0.00 from already low rate
o Los Banos – Drop to $0.00 from already low rate
o After 2024
o Significant increases for next 4 years, near to rates of 2022, but still not approaching rates of 2021
Customer Rates to PCE – Relatively flat for next 3 years, then lower in 2027 and 2028 (but still well above low year of 2021)
Peninsula Clean Energy
Draft Budget FY 2023-2024 – Key Assumptions (Page 2 of 2) 39 Cost of Energy –
o Budgeted at $311 million - Increase of $39 million (14%) over FY23 forecast o Resource Adequacy cost projection accounts for nearly $31 million of the increase o Overall budget includes 2 conservatism contingencies
o Energy Cost Volatility = $15 million/year
o Achieving 100% Renewable with 99% Time Coincidence by 2027 = $56 million over 5 years; $770K in FY24
o To achieve this by 2027, requires signing of 15 projects on detailed planned timeline – delays would result in additional REC and RA costs and more market volatility exposure o Total cost is 9% higher than FY23 forecast without conservatism adders Peninsula Clean Energy
Revenue Assumptions
40 2021 2022 2023 2024 2025 2026 2027 2028
Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Example Residential Rate: PG&E E-1 Rate
San Mateo County 0.11314 0.15152 0.15614 0.15737 0.16119 0.15934 0.14490 0.13533 YoY % Change 33.93% 3.05% 0.79% 2.42% -1.15% -9.06% -6.61% Los Banos 0.15152 0.15614 0.15737 0.16119 0.15934 0.14490 0.13533 YoY % Change 3.05% 0.79% 2.42% -1.15% -9.06% -6.61%
Example Business Rate: PG&E B10-S Summer Off-Peak
San Mateo County 0.10299 0.13999 0.14359 0.14472 0.14823 0.14653 0.13325 0.12445 YoY % Change 35.93% 2.57% 0.79% 2.42% -1.15% -9.06% -6.61% Los Banos 0.13999 0.14359 0.14472 0.14823 0.14653 0.13325 0.12445 YoY % Change 2.57% 0.79% 2.42% -1.15% -9.06% -6.61%
Calendar Year
PG&E Generation Rate Assumptions
Peninsula Clean Energy
Revenue Assumptions
41 2021 2022 2023 2024 2025 2026 2027 2028
Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Example Residential Rate: PG&E E-1 Rate
San Mateo County 0.04579 0.02010 0.00335 0.00000 0.00463 0.00932 0.01767 0.02331 YoY % Change -56.10% -83.33% -100.00% n/a 101.44% 89.52% 31.96% *
Los Banos 0.02572 0.00335 0.00000 0.00463 0.00316 0.01168 0.01800 YoY % Change -86.98% -100.00% n/a -31.72% 269.65% 54.09% *
Example Business Rate: PG&E B10-S Summer Off-Peak
San Mateo County 0.04764 0.02054 0.00338 0.00000 0.00467 0.00941 0.01783 0.02352 YoY % Change -56.88% -83.54% -100.00% n/a 101.44% 89.52% 31.96% *
Los Banos 0.02594 0.00338 0.00000 0.00467 0.00319 0.01179 0.01816 YoY % Change -86.97% -100.00% n/a -31.72% 269.65% 54.09% *
* Note - PCIA is expected to be negative. We have assumed zero.
PG&E PCIA Assumptions
Calendar Year
Peninsula Clean Energy
Revenue Assumptions
42 2021 2022 2023 2024 2025 2026 2027 2028
Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Example Residential Rate: PG&E E-1 Rate
San Mateo County 0.06120 0.12057 0.14388 0.14841 0.14740 0.14095 0.11889 0.10415 YoY % Change 97.02% 19.34% 3.15% -0.68% -4.38% -15.65% -12.40% *
Los Banos 0.11752 0.14388 0.14841 0.14740 0.14711 0.12488 0.10946 YoY % Change 22.43% 3.15% -0.68% -0.20% -15.11% -12.35% *
Example Business Rate: PG&E B10-S Summer Off-Peak
San Mateo County 0.04970 0.10895 0.13191 0.13637 0.13503 0.12867 0.10764 0.09359 YoY % Change 119.23% 21.08% 3.38% -0.98% -4.71% -16.34% -13.06% *
Los Banos 0.10544 0.13191 0.13637 0.13503 0.13489 0.11368 0.09895 YoY % Change 25.10% 3.38% -0.98% -0.10% -15.72% -12.96% PCE Customer Generation Rate Assumptions
Calendar Year
Peninsula Clean Energy
Cost of Energy Assumptions
43 • 100% Renewable Power by end of CY2025
• 100% Renewable and 99% Time Coincident by end of CY2027 • Forward Price Curve from third-party provider based on March 22, 2023 pricing – details by nodes for each PPA and hedge contract • RA purchases at market prices in all months for each calendar year • EV Adoption rates add ~50 to 100GWh/year (1% to 3% of load) 2024 2025 2026 2027 2028
Forecast Forecast Forecast Forecast Forecast
Loss Adjusted Load 3,721,576,759 3,775,401,772 3,857,638,693 3,993,193,610 4,154,575,319 Calendar Year
Load Assumptions (MWh)
Peninsula Clean Energy
Staffing Assumptions
44 • Current 38 Positions
• FY 24 Budget assumes adding:
o Account Services – Senior Account Services Analyst
o Regulatory - Regulatory Analyst
o Marketing - Community Outreach Specialist
o Programs – Program Analyst/Program Manager
o Data and Technology - Data Analyst
o Finance – Finance and Rates Manager
o Power Resources – Power Resources Specialist/ Analyst o Power Resources - Senior Manager Local Generation
o Human Resources - HR Specialist/Admin Asst
Peninsula Clean Energy
Other Budgeting Assumptions
45 • Solar and Storage on Public Buildings
oCapital Outlay
o PV1 - $7.4 million in FY 24
o PV2 - $43.0 million in FY 25
o Investment Tax Credit – 30-35%
o PV1 - $2.2 million in FY 26
o PV2 - $15.0 million in FY 27
oRepayment based on usage over 20-year period
Peninsula Clean Energy
Initial Draft Budget FY24 – Summary
46 2023 2023 2023 2024
Budget Forecast Variance - Fav/(Unf) Draft Budget
perating Revenues 367,783,691 431,254,981 63,471,290 474,624,034
OPERATING EXPENSES
Cost of energy 264,208,440 269,342,688 (5,134,249) 311,261,389 Total Operating Expenses 294,429,488 293,405,542 1,023,946 349,657,317 Operating Income (Loss) 73,354,203 137,849,439 64,495,237 124,966,717 Total Nonoperating Income/(Expense) 600,000 2,192,412 1,592,412 645,192 CHANGE IN NET POSITION 73,954,203 140,041,851 66,087,648 125,611,909 Net Position at the beginning of period 174,211,272 167,670,734 (6,540,538) 300,430,872 Net Position at the end of period 248,165,475 307,712,585 59,547,110 426,042,781 Total Cash & Cash Equivalents 244,006,205 379,902,700
Unrestricted Cash Days on Hand 304 397
Fiscal Year Fiscal Year
Peninsula Clean Energy
Initial Draft Budget FY 24 – Detail
47 2023 2023 2023 2024
Budget Forecast Variance - Fav/(Unf) Draft Budget
OPERATING REVENUES
Electricity Sales, net 364,961,141 428,282,058 63,320,918 471,670,872 Green electricity premium 2,822,550 2,972,923 150,373 2,953,162 perating Revenues 367,783,691 431,254,981 63,471,290 474,624,034
OPERATING EXPENSES
Cost of energy 264,208,440 269,342,688 (5,134,249) 311,261,389 Staff compensation 8,583,221 7,373,531 1,209,691 10,922,801 Data Manager 3,600,000 3,574,069 25,931 3,871,152
Service Fees - PG&E 1,350,000 1,305,818 44,182 1,400,000 Consultants & Professional Services 1,431,813 1,044,479 387,334 1,788,491 Legal 1,474,000 1,383,211 90,789 1,574,558
Communications and Noticing 2,686,208 1,524,403 1,161,805 2,850,940 General and Administrative 2,359,806 2,233,614 126,192 4,027,236 Community Energy Programs 8,640,000 5,542,963 3,097,037 11,726,000 Depreciation 96,000 80,765 15,235 234,750
Total Operating Expenses 294,429,488 293,405,542 1,023,946 349,657,317 Operating Income (Loss) 73,354,203 137,849,439 64,495,237 124,966,717 NON-OPERATING REVENUES (EXP.)
Total Nonoperating Income/(Expense) 600,000 2,192,412 1,592,412 645,192 CHANGE IN NET POSITION 73,954,203 140,041,851 66,087,648 125,611,909 Net Position at the beginning of period 174,211,272 167,670,734 (6,540,538) 300,430,872 Net Position at the end of period 248,165,475 307,712,585 59,547,110 426,042,781 Total Cash & Cash Equivalents 244,006,205 379,902,700
Unrestricted Cash Days on Hand 304 397
Fiscal Year Fiscal Year
Peninsula Clean Energy
Draft Budget FY 2023-2028 – Budget Summary & 5-year Plan 2024 2025 2026 2027 2028
Draft Budget Projection Projection Projection Projection perating Revenues 474,624,034 487,194,674 485,715,240 455,048,558 405,882,856
OPERATING EXPENSES
Cost of energy 311,261,389 383,611,464 382,474,223 344,299,885 329,946,422 Total Operating Expenses 349,657,317 431,907,562 438,723,088 406,769,676 396,572,285 Operating Income (Loss) 124,966,717 55,287,112 46,992,152 48,278,882 9,310,571 Total Nonoperating Income/(Expense) 645,192 673,580 703,218 734,160 766,463 CHANGE IN NET POSITION 125,611,909 55,960,692 47,695,370 49,013,041 10,077,033 Net Position at the beginning of period 300,430,872 426,132,781 482,188,873 529,985,368 579,105,600 Net Position at the end of period 426,042,781 482,093,473 529,884,244 578,998,409 589,182,634 Total Cash & Cash Equivalents 379,902,700 433,325,042 484,752,203 533,919,686 544,157,425 Unrestricted Cash Days on Hand 397 367 406 482 504
Fiscal Year
Peninsula Clean Energy
Draft Budget FY 2023-2028 – Budget Detail & 5-year Plan 2023 2024 2025 2026 2027 2028
Forecast Draft Budget Projection Projection Projection Projection
OPERATING REVENUES
Electricity Sales, net 428,282,058 471,670,872 484,233,036 482,737,236 452,054,000 402,863,671 Green electricity premium 2,972,923 2,953,162 2,961,637 2,978,004 2,994,557 3,019,185 perating Revenues 431,254,981 474,624,034 487,194,674 485,715,240 455,048,558 405,882,856
OPERATING EXPENSES
Cost of energy 269,342,688 311,261,389 383,611,464 382,474,223 344,299,885 329,946,422 Staff compensation 7,373,531 10,922,801 11,578,169 12,272,859 13,009,231 13,789,784 Data Manager 3,574,069 3,871,152 4,103,421 4,349,626 4,610,604 4,887,240 Service Fees - PG&E 1,305,818 1,400,000 1,484,000 1,573,040 1,667,422 1,767,468 Consultants & Professional Services 1,044,479 1,788,491 1,091,949 1,119,665 1,168,642 1,199,674 Legal 1,383,211 1,574,558 1,633,099 1,707,767 1,786,843 1,870,626 Communications and Noticing 1,524,403 2,850,940 2,964,912 3,048,580 3,134,757 3,223,520 General and Administrative 2,233,614 4,027,236 3,748,298 3,929,634 4,121,293 4,336,551 Community Energy Programs 5,542,963 11,726,000 20,630,000 25,781,000 30,355,000 32,935,000 Depreciation 80,765 234,750 1,062,250 2,466,694 2,616,000 2,616,000 Total Operating Expenses 293,405,542 349,657,317 431,907,562 438,723,088 406,769,676 396,572,285 Operating Income (Loss) 137,849,439 124,966,717 55,287,112 46,992,152 48,278,882 9,310,571 NON-OPERATING REVENUES (EXP.)
Total Nonoperating Income/(Expense) 2,192,412 645,192 673,580 703,218 734,160 766,463 CHANGE IN NET POSITION 140,041,851 125,611,909 55,960,692 47,695,370 49,013,041 10,077,033 Net Position at the beginning of period 167,670,734 300,430,872 426,132,781 482,188,873 529,985,368 579,105,600 Net Position at the end of period 307,712,585 426,042,781 482,093,473 529,884,244 578,998,409 589,182,634 Total Cash & Cash Equivalents 244,006,205 379,902,700 433,325,042 484,752,203 533,919,686 544,157,425 Unrestricted Cash Days on Hand 304 397 367 406 482 504
Fiscal Year Fiscal Year
Peninsula Clean Energy
Excess Funds
50 • Recommended steps:
1. Executive Committee to form Subcommittee to develop overall policy on use of excess funds considering the mission of PCE and other objectives
2. Staff to develop possible options/recommendations on use of funds
3. Board members submit ideas to staff (to avoid Brown Act issues)
4. Staff to provide analysis of Board member and staff options for consideration by EC subcommittee
5. EC Subcommittee to meet with staff to evaluate options for use of excess funds based on staff analysis
6. EC Subcommittee provide recommendation to Executive Committee in 90-120 days
7. Executive Committee present recommendation to full Board (possibly at September Board retreat)
Peninsula Clean Energy
Next Steps on Adoption of FY 24 Budget
• Update to year-end FY24 forecast to reflect April 2023 financial results – expected to be available in time for June Audit and Finance meeting
• June 12, 2023 – Review Revised Draft Budget with Audit & Finance Committee
• June 12, 2023 – Review Revised Draft Budget with Executive Committee
• June 22, 2023 – Approve Final Budget by Board of Directors 51 July 1, 2023 Rate Change
Board Meeting Discussion
May 25, 2023
Peninsula Clean Energy
PG&E June 1, 2023 Rate Change
• Distribution Rate Impacts
o Four revenue requirement changes with net decrease to system average rate of 0.50 cents ($0.005), or ~2%
• Residential E-TOU-C Structural Rate Change
o Structural rate change increasing Peak (4-9 pm) and Off Peak differential pricing for both distribution and generation rates
o Rate change is “revenue neutral” for PG&E customer base o This is the first step of three structural rate changes following 2020 GRC Phase 2 decision
53 Peninsula Clean Energy
What is E-TOU-C
• E-TOU-C is the default electricity rate for residential customers • ~164K customers currently have E-TOU-C as their rate schedule • Peak pricing is 4-9 p.m. every day
54 Peninsula Clean Energy
E-TOU-C Rate Change
55 • TOU-C was intentionally introduced with mild Peak/Off Peak price differentials with a plan to phase in greater differentials over time • June 1 rate change increases differential between Peak and Off Peak by 1 cent/kWh
PG&E E-TOU-C Generation Rates
Summer Rate Peak Off Peak Differential
Current $0.20433 $0.15089 $0.05344
June 1, 2023 Rates $0.21085 $0.14741 $0.06344
Net Change $0.00652 ($0.00348) $0.01000
Peninsula Clean Energy
Peninsula Clean Energy Rate Change and Bill Impact
• The average TOU-C customers will save $0.31 (0.53%) monthly in electric generation costs (CARE customers will save $0.25 (0.49%)) • Structural rate change benefits customers who use more electricity during off peak hours (all hours outside of 4-9 p.m.)
56 Rate Component
Peninsula Clean Energy
Rates In Effect Today
Proposed Peninsula
Clean Energy Rates
Effective July 1 $/kWh Change
Summer Peak $0.18966 $0.19586 $0.00619
Summer Off Peak $0.1389 $0.13559 ($0.00331)
Winter Peak $0.14334 $0.14969 $0.00635
Winter Off Peak $0.12906 $0.12591 ($0.00315)
Peninsula Clean Energy
Recommendation
• Approve this resolution authorizing the implementation of new Peninsula Clean Energy rates to be effective July 1, 2023 to maintain a 5% discount in generation charges as compared to PG&E generation rates
57 Adjournment
Peninsula Clean Energy