2075 Woodside Road | Redwood City, CA 94061
(650) 260-0005 | peninsulacleanenergy.com
Regular Meeting of the Board of Directors of the
Peninsula Clean Energy Authority (PCEA)
AGENDA
Thursday, June 22, 2023
6:30 p.m.
PLEASE NOTE: This meeting will be held in a hybrid format with both in-person and Zoom participation options for members of the public; Board members shall appear in person.
In-Person Meeting Locations:
PCEA Lobby, 2075 Woodside Road, Redwood City, CA 94061
Los Banos City Hall, Conference Room A, 520 J Street, Los Banos, CA 93635 Zoom, Virtual Meeting Link: https://pencleanenergy.zoom.us/j/82772843517 Meeting ID: 827-7284-3517 Passcode: 2075 Phone: +1(669) 444-9171 This meeting of the Board of Directors will be held at the Peninsula Clean Energy Lobby: 2075 Woodside Road, Redwood City, CA 94061 and Los Banos City Hall, Conference Room A, 520 J Street, Los Banos, CA 93635 and by teleconference pursuant to California Assembly Bill 2449 and the Ralph M. Brown Act, CA Gov’t Code. Section 54950, et seq. Members of the Board are expected to attend the meeting in person and should reach out to Assistant General Counsel for Peninsula Clean Energy, Jennifer Stalzer, with questions or accommodation information ([email protected]). For information regarding how to participate in the meeting remotely, please refer to the instructions at the end of the agenda. In addition, a video broadcast of the meeting can be viewed at https://www.peninsulacleanenergy.com/board-of-directors following the meeting.
Public Participation
The PCEA Board meeting may be accessed through Zoom online at https://pencleanenergy.zoom.us/j/82772843517. The meeting ID is: 827-7284-3517 and the passcode is 2075. The meeting may also be accessed via telephone by dialing +1(669) 444-9171.
Enter the webinar ID: 827-7284-3517, then press #. (Find your local number:
https://pencleanenergy.zoom.us/u/kTlH1Ocod). Peninsula Clean Energy uses best efforts to ensure audio and visual clarity and connectivity. However, it cannot guarantee the connection quality.
Members of the public can also attend this meeting physically at the Peninsula Clean Energy Lobby at 2075 Woodside Road, Redwood City, CA 94061 or Los Banos City Hall, Conference Room A, 520 J Street, Los Banos, CA 93635.
Written public comments may be emailed to PCEA Board Clerk, Nelly Wogberg ([email protected]) and such written comments should indicate the specific agenda item on which the member of the public is commenting.
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1 Spoken public comments will be accepted during the meeting in the Board Room(s) or remotely through Zoom at the option of the speaker. Please use the “Raise Your Hand” function in the Zoom platform, or press *6 if you phoned into the meeting, to indicate that you would like to provide comment.
ADA Requests
Individuals who require special assistance or a disability related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting, should contact Nelly Wogberg, Board Clerk, by 10:00 a.m. on the day before the meeting at ([email protected]). Notification in advance of the meeting will enable PCEA to make reasonable arrangements to ensure accessibility to this meeting, the materials related to it, and your ability to comment.
Closed Captioning is available for all PCEA Board meetings. While watching the video broadcast in Zoom, please enable captioning.
CALL TO ORDER / ROLL CALL/ APPROVE TELECONFERENCE PARTICIPATION UNDER AB 2449
This item is reserved to approve teleconference participation request for this meeting by Director pursuant to Brown Act revisions of AB 2449 due to an emergency circumstance to be briefly described.
PUBLIC COMMENT
This item is reserved for persons wishing to address the Board on any PCEA-related matters that are not otherwise on this meeting agenda. Public comments on matters listed on the agenda shall be heard at the time the matter is called. Members of the public who wish to address the Board are customarily limited to two minutes per speaker. The Board Chair may increase or decrease the time allotted to each speaker.
ACTION TO SET AGENDA AND TO APPROVE CONSENT AGENDA ITEMS
1. Approval of the Minutes for the May 25, 2023 Board of Directors Meeting
2. Appointment of Members to the Citizens Advisory Committee (CAC)
REGULAR AGENDA
3. Chair Report (Discussion)
4. CEO Report (Discussion)
5. Citizens Advisory Committee Report (Discussion)
6. Recognition of Chief Executive Officer Jan Pepper Upon Retirement (Discussion)
7. Approval of the Fiscal Year (FY) 2023-2024 Budget (Action) PCE - 2
2 8. Approve Resolution Delegating Authority to Chief Executive Officer to Execute Power Purchase Agreement (PPA) With Sunzia Wind Powerco LLC, and any Necessary Ancillary Documents, Including A Potential Replacement PPA With no Material Changes From Those Presented to the Board, With a Power Delivery Term of 15 Years Starting at the Commercial Operation Date on or About September 30, 2026, in an Amount Not-to-Exceed $858 Million (Action)
9. Approval of Staff’s Recommendation on Delivery of 100% Renewable Energy Annually by 2025 and on a 99% Time-Coincident Basis by 2027 (Action)
10. Approval of Resolution Approving Appointment of Shawn E. Marshall as Chief Executive Officer (CEO) and an Agreement for her Service as CEO for the Term of July 1, 2023 to June 30, 2026 in an Amount Not-to-Exceed $400,000 Annually (Action)
11. Regionalization Study Session (Discussion)
12. Board Members’ Reports (Discussion)
INFORMATIONAL REPORTS
13. Update on Marketing, Outreach Activities, and Account Services
14. Update on Regulatory Policy Activities
15. Update on Legislative Activities
16. Update on Community Energy Programs
17. Update on Energy Supply Procurement
18. Report on California Community Power (CCP) Joint Powers Authority
19. Industry Acronyms and Terms
ADJOURNMENT
Public records that relate to any item on the open session agenda are available for public inspection. The records are available at the Peninsula Clean Energy offices or on PCEA’s Website at:
https://www.peninsulacleanenergy.com.
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3 Instructions for Joining a Zoom Meeting via Computer or Phone Best Practices:
• Please mute your microphone when you are not speaking to minimize audio feedback • If possible, utilize headphones or ear buds to minimize audio feedback • If participating via videoconference, audio quality is often better if you use the dial-in option (Option 2 below) rather than your computer audio Options for Joining
A. Videoconference with Computer Audio – see Option 1 below B. Videoconference with Phone Call Audio– see Option 2 below C. Calling in via Telephone/Landline – see Option 3 below Videoconference Options:
Prior to the meeting, we recommend that you install the Zoom Meetings application on your computer by clicking here https://zoom.us/download.
If you want full capabilities for videoconferencing (audio, video, screensharing) you must download the Zoom application.
Option 1 Videoconference with Computer Audio:
1. From your computer, click on the following link that is also included in the Meeting Calendar Invitation: https://pencleanenergy.zoom.us/j/82772843517
2. The Zoom application will open on its own or you will be instructed to open Zoom.
3. After the application opens, the pop-up screen below will appear asking you to choose ONE of the audio conference options. Click on the Computer Audio option at the top of the pop-up screen.
4. Click the blue, “Join with Computer Audio” button.
5. In order to enable video, click on “Start Video” in the bottom left-hand corner of the screen. This menu bar is also where you can mute/unmute your audio.
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4 Option 2 Videoconference with Phone Call Audio:
1. From your computer, click on the following link that is also included in the Meeting Calendar Invitation: https://pencleanenergy.zoom.us/j/82772843517
2. The Zoom Application will open on its own or you will be instructed to Open Zoom.
3. After the application opens, the pop-up screen below will appear asking you to choose ONE of the audioconference options. Click on the Phone Call option at the top of the pop-up screen.
4. Please dial +1(669) 444-9171
5. You will be instructed to enter the meeting ID: 827-7284-3517 followed by #
6. You will be instructed to enter in your participant ID. Your participant ID is unique to you and is what connects your phone number to your Zoom account
7. After a few seconds, your phone audio should be connected to the Zoom application on your computer
8. In order to enable video, click on “Start Video” in the bottom left-hand corner of the screen. This menu bar is also where you can mute/unmute your audio Audio Only Options:
Please note that if you call in/use the audio only option, you will not be able to see the speakers or any presentation materials in real time.
Option 3: Calling in via Telephone/Landline:
1. Dial +1(669) 444-9171
2. You will be instructed to enter the meeting ID: 827-7284-3517 followed by #
3. You will be instructed to enter your Participant ID followed by #. If you do not have a participant ID or do not know it, you can press # to stay on the line
4. You will be instructed to enter the meeting passcode 2075 followed by # PCE - 5
5 Item No. 1
Regular Meeting of the Board of Directors of the
Peninsula Clean Energy Authority (PCEA)
Minutes
Thursday, May 25, 2023
6:30 p.m.
Zoom Video Conference and Teleconference
CALL TO ORDER
Meeting was called to order at 6:32 p.m. in virtual teleconference, in the Peninsula Clean Energy Authority lobby, in the Los Banos City Hall conference room A, and the Homewood Suites Anaheim Resort in California.
ROLL CALL
Participating:
Dave Pine, San Mateo County
Rick DeGolia, Atherton, Chair
Julia Mates, Belmont
Coleen Mackin, Brisbane
Donna Colson, Burlingame, Vice Chair
Ken Gonzalez, Colma
Roderick Daus-Magbual, Daly City
Carlos Romero, East Palo Alto
Sam Hindi, Foster City
Harvey Rarback, Half Moon Bay
Leslie Ragsdale, Hillsborough
Paul Llanez Faria, Los Banos
Betsy Nash, Menlo Park
Anders Fung, Millbrae
Tygarjas Bigstyck, Pacifica
Jeff Aalfs, Portola Valley
Elmer Martinez Saballos, Redwood City
Marty Medina, San Bruno
Pranita Venkatesh, San Carlos
Adam Loraine, San Mateo
Kevin Bryant, Woodside
Absent:
Ray Mueller, San Mateo County
James Coleman, South San Francisco
A quorum was established.
PUBLIC COMMENT
None
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6 Item No. 1
ACTION TO SET THE AGENDA AND APPROVE REMAINING CONSENT AGENDA ITEMS MOTION: Director Medina moved, seconded by Director Hindi to set the Agenda, and approve Agenda Item Numbers 1-2.
1. Approval of the Minutes for the March 23, 2023 and April 27, 2023 Board of Directors Meetings
2. Approval of revisions to the Disadvantaged Communities Green Tariff (DAC-GT) and Community Solar Green Tariff (CSGT) Tariff Sheet
MOTION PASSED: 21-0 (Absent: San Mateo County, South San Francisco)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Pine X
San Mateo County Director Mueller X
Atherton Director DeGolia X
Belmont Director Mates X
Brisbane Director Mackin X
Burlingame Director Colson X
Colma Director Gonzalez X
Daly City Director Daus-Magbual X
East Palo Alto Director Romero X
Foster City Director Hindi X
Half Moon Bay Director Rarback X
Hillsborough Director Ragsdale X
Los Banos Director Llanez X
Menlo Park Director Nash X
Millbrae Director Fung X
Pacifica Director Bigstyck X
Portola Valley Director Aalfs X
Redwood City Director Martinez Saballos X
San Bruno Director Medina X
San Carlos Director Dugan X
San Mateo Director Lee X
South San Francisco Director Coleman X
Woodside Director Bryant X
Totals 21 2
REGULAR AGENDA
3. Chair Report
Chair DeGolia gave a recap of the CalCCA Conference in San Diego, California. Chair DeGolia noted that Garth Salisbury, the Chief Financial Officer at Marin Clean Energy will present to the June 12, 2023 Audit and Finance Committee meeting.
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7 Item No. 1
4. CEO Report
Jan Pepper, Chief Executive Officer, gave a presentation including a note that Peninsula Clean Energy Staff is working on improving audio quality for the recorded meetings, a staffing update including summer interns, a legislative update, information on Community Impact Awards from the CalCCA Conference, and a recap of staff volunteer events in the community. Jan reported that Peninsula Clean Energy received two Community Impact Awards: we received first place in the Equity Category for our Community Outreach Grants Program and we received runner-up in the Decarbonization Category with EBCE and SVCE for the reach codes work.
5. Citizens Advisory Committee Report
Cheryl Schaff, Citizens Advisory Committee (CAC) Chair, gave a presentation recapping the May 11, 2023 Citizens Advisory Committee Meeting, including enthusiasm for a committee name change to the Community Advisory Group.
Director Romero asked the process for the CAC changing their name. Chair DeGolia explained the name change will be brought to the Board for official adoption.
Director Aalfs asked when new CAC members would be approved. Cheryl explained that new members would be approved at the June Board meeting and sworn in at the July 13, 2023 CAC meeting.
Director Nash offered her gratitude for the interest in the local government electrification program.
6. Approval of DEAI Action Plan (Action)
Kirsten Anders-Schwind, Senior Manager of Community Relations, introduced the Diversity, Equity, Accessibility, and Inclusion (DEAI) Action Plan.
Vice Chair Colson shared background information on Peninsula Clean Energy’s DEAI Commitment.
Shayna Barnes, Operations Specialist, continued the presentation with the Action Plan development and the DEAI Action Plan outline.
Kirsten continued the presentation with the foundation of strategic goals, organizational culture and DEAI commitment actions, actions for human resources, staffing and recruitment, Chair DeGolia asked for clarification on Self-ID. Kirsten explained, that self-ID is asking individuals to identify in a safe way and allowing for ongoing change.
Kristen continued the presentation with Energy Program development and implementation, and Marketing and Account Services actions.
Director Mackin asked to see a simplification of messaging to older residents included in the action plan.
Vice Chair Colson noted that she is working on Age Friendly Cities documents in Burlingame to work with organizations like Peninsula Clean Energy, One Shoreline, City/County Association of Governments, and others to figure out ways to engage our seniors back in the political process and encouraged participation at the city level.
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8 Item No. 1
Shayna continued the presentation with vendor and energy supplier diversity actions, monitoring and evaluation, an overview of appendices, and training plan recommendations.
Director Mates noted her thanks for the Citizens Advisory Committee (CAC) and the DEAI Subcommittee and Staff for their important work on DEAI and asked if staff is on board with the aggressive timeline? Kirsten explained that it is important to start aggressively and do our best.
Director Mates also noted the importance of making sure that trainings speak to all the different kinds of diversity definitions that exist.
Chair DeGolia noted that he hopes this item could come before CalCCA next year and that to make that work we have to know how to define this so it can be easily explained to others.
Director Daus-Magbual thanked Vice Chair Colson and the DEAI Subcommittee, including Staff and GCAP for their work on the DEAI Action Plan.
Director Bigstyck noted the strong stance Peninsula Clean Energy is taking on this version of equity, and shared that Jonathan Cordero, the Executive Director of the Association of Ramaytush Ohlone, offers some trainings that he will connect with Staff about. Director Bigstyck also noted that environmental justice hasn’t been mentioned tonight and is a connection to Peninsula Clean Energy’s environmental mission.
Director Hindi shared gratitude to others on the DEAI Subcommittee and thanked the Board for direction to do the maximum amount of effort.
Director Romero asked if the DEAI Council has been formed and if not, when is that Council expected for form. Kirsten explained that is an internal Staff council was formed in Fall 2022 and has been expanded to include representatives from all departments. The staff-led DEAI Council meets twice a month to assist departments in implementing the Action Plan.
Director Romero asked how the annual review process will work. Kirsten explained that is yet to be determined. Director Romero suggested an outside vendor work with the DEAI Council to review the status of meeting DEAI goals.
Vice Chair Colson suggested the original consultant, GCAP, or other consultants who were interviewed previously could be brought in again to help with annual monitoring.
Director Romero expressed his gratitude to those who have worked hard to keep the DEAI Action Plan moving forward.
Director Mackin shared that internal annual reporting is equally important to external reporting and suggested a debriefing from contractors that Peninsula Clean Energy contracts with to see the ease of complying with what is asked of them.
MOTION: Director Romero moved, seconded by Director Daus-Magbual to Adopt Peninsula Clean Energy Diversity, Equity, Accessibility, and Inclusion (DEAI) Action Plan MOTION PASSED: 21-0 (Absent: San Mateo County, South San Francisco)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Pine X
San Mateo County Director Mueller X
PCE - 9
9 Item No. 1
Atherton Director DeGolia X
Belmont Director Mates X
Brisbane Director Mackin X
Burlingame Director Colson X
Colma Director Gonzalez X
Daly City Director Daus-Magbual X
East Palo Alto Director Romero X
Foster City Director Hindi X
Half Moon Bay Director Rarback X
Hillsborough Director Ragsdale X
Los Banos Director Llanez X
Menlo Park Director Nash X
Millbrae Director Fung X
Pacifica Director Bigstyck X
Portola Valley Director Aalfs X
Redwood City Director Martinez Saballos X
San Bruno Director Medina X
San Carlos Director Venkatesh X
San Mateo Director Loraine X
South San Francisco Director Coleman X
Woodside Director Bryant X
Totals 21 2
7. Review of Fiscal Year 2023-2024 Draft Budget (Discussion) Andy Stern, Interim Chief Financial Officer, gave a presentation including a budget review and approval schedule, key assumptions of the draft budget for Fiscal Year (FY) 2023-2024, revenue assumptions for PG&E generation rate and Power Charge Indifference Adjustment (PCIA) assumptions, and revenue assumptions with PG&E PCIA and generation rate assumptions.
Director Loraine asked when Peninsula Clean Energy would be free of the PG&E PCIA obligation.
Jan Pepper, Chief Executive Officer, added that the PCIA would remain until 2040 or 2045.
Chair DeGolia noted that the only thing we’ve seen in the last few years is that projections are impossible to predict. Jan added that the day when projections are done, they are as good as can be, and that outside forces change things.
Director Romero asked for clarification on the two conservatism contingencies from key assumptions.
Andy explained that cost of energy is budgeted at $311 million, with the $39 million increase inclusive of almost $16 million in contingencies. Andy noted that without the contingencies the forecast would still be 9% higher.
Vice Chair Colson noted that the carryover of 180 days cash on hand is to absorb unexpected volatility and added that our conservative financial policies are why Peninsula Clean Energy has cash on hand.
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10 Item No. 1
Jan Pepper added that the 24/7 goal is less expensive than being subject to the volatility of natural gas prices and fossil fuels. Jan added that once you contract for renewables there isn’t any fuel volatility and that even if the 24/7 timeline goals weren’t met it would be more expensive to purchase renewable energy credits rather than having locked in prices for contracts.
Andy Stern continued the presentation with cost of energy assumptions, staffing assumptions, other budgeting assumptions including the Solar and Storage on Public Buildings program, and the summary initial draft budget for FY 2024.
Director Romero asked if the predictions for market price of Resource Adequacy (RA) could vary greatly. Jan Pepper explained that yes, they could, and that prices are currently very high.
Andy Stern noted that a signification amount has been factored in for volatility and contingency, and that a significant chunk of the $5 million happened in a 10-day period in September 2022 during the heat wave.
Andy Stern continued the presentation with the Draft Budget FY 2023-2028 Budget summary and 5- year Plan.
Jan Pepper shared staff’s recommended steps to discuss excess funds including a recommendation that the Executive Committee form a subcommittee to determine a policy on use of excess funds, considering Peninsula Clean Energy’s mission and other objectives and noting that this is a policy decision and the Executive Committee’s role is to work through policy changes.
Andy Stern added that energy prices are volatile, the PCIA is extremely difficult to predict, and that long-term projections are based on continued rate-setting using PG&E’s rates and expected PCIA which are not reliable 5-years out. Andy added that Staff is simultaneously investigating a cost-of-service rate setting format which would tie rates to cost. Andy also shared that 180 days cash on hand is a company policy, but in his opinion it is lower than recommended.
Vice Chair Colson asked if moving to a cost-of-service model would reduce the overages that tend to occur in the current model. Andy explained that if load and costs could be accurately predicted, it would narrow it. Andy shared that the Investor Owned Utilities (IOUs) set their rates on a cost-of-service model within the California Public Utilities Commission (CPUC) margin they are allowed to charge, but that they frequently miss the mark in part because it is difficult to predict what will happen in energy markets.
Director Aalfs shared that rate setting could reward consumers for saving during critical times and could become strategic as a conservation tool. Director Aalfs asked if there is a negative correlation between RA and PCIA. Andy explained that one of the contributors to why RA prices change is that more Community Choice Aggregations (CCAs) are chasing the same resources to be compliant.
CCAs are only getting bigger and more prevalent and that could be a counterweight to the prediction.
Public Comment: Micah
Chair DeGolia noted that projections are highly volatile and that the numbers in the budget are large in contrast to the budgeted loss 2 years prior and supported Staff’s decision to create a mechanism to address the policy issue.
Director Llanez shared information on the financial demographics in Los Banos and noted that Los Banos and San Mateo County are not on level playing fields. He also noted that the policy on days PCE - 11
11 Item No. 1
cash on hand should be adjusted before creating the budget. Andy Stern explained that the policy is a minimum days cash on hand policy with the intention of the policy that if the amount went below 180, there would need to be a marked change of either increased rates or cuts in programs. The policy does not address a maximum, which is a Board decision.
Director Nash shared that within the budget in Menlo Park there are strong climate goals and one of the pieces that isn’t coming together is the Electric Vehicle (EV) charging infrastructure, especially for emergency vehicles. Director Nash asked for $300,000-$500,000 for two fast EV chargers for emergency vehicles in Menlo Park.
Vice Chair Colson noted that many cities are trying to electrify fleets and that this falls under policy work and is a broader topic for partially using reserves as a pool for electrification standards for municipal buildings. Knowing that EV infrastructure is a need, the Board could set up a fund and allocate money, rather than a one-off for an individual city.
Director Aalfs noted Peninsula Clean Energy has an EV charging structure program. Director Nash shared that Menlo Park is in the Peninsula Clean Energy program for EV infrastructure which covers approximately 6-10% of the costs, and that because these are lighter duty vehicles the cost is is not covered by PG&Es rebates.
Vice Chair Colson suggested a program to consider could be a revolving loan program with a low interest rate, giving flexibility to pay it back over different budget cycles.
Shawn Marshall, Chief Operating Officer, added that some of this is being contemplated with the local government electrification program which is under development.
Chair DeGolia noted that this is a policy issue, and the Board needs to figure out the right mechanism with what to do, not as part of a one-off, but with specific uses of the funds to achieve the goals that are targeted. Peninsula Clean Energy had the highest discount rate of any CCA in California; Pioneer Clean Energy now has a 15% discount rate. It is impossible to predict what will happen with rates, but Peninsula Clean Energy’s mission is not just to provide clean energy but to also do it at a lower cost. Chair DeGolia added that he is interested in increasing the discount so all customers can feel that.
Director Daus-Magbual suggested a framework such as an equity net that can show specific needs in each city.
Director Mates noted that Staff recommends the Executive Committee forms a subcommittee and asked if the subcommittee could be formed differently.
Jan Pepper explained that the suggestion would be to not have a quorum of any committee.
Directors Fung noted that this should be viewed holistically and through an equity lens while prioritizing Peninsula Clean Energy’s goals and taking Andy Sterns consideration on the number of days cash on hand into account.
Jennifer Stalzer, Associate County Counsel, noted that an ad-hoc subcommittee could meet as a derivative of the board to determine what to do with these funds.
Director Nash shared that climate action is important and is affecting our most vulnerable communities first.
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12 Item No. 1
Chair DeGolia restated that Staff suggested forming an ad-hoc subcommittee at the June 12, 2023 Executive Committee and to let the Chair know of interest in serving on the ad-hoc committee. Chair DeGolia suggested the subcommittee return with a recommendation on how to address the surplus, not necessarily the answer, but to bring this back to the entire Board.
Director Medina noted submitting ideas to Staff versus the ad-hoc subcommittee.
Director Ragsdale added that ideas could be brought to the Citizens Advisory Committee (CAC).
Chair DeGolia agreed that this is an important issue for the CAC.
Jan Pepper asked for clarification. Chair DeGolia suggested that the Executive Committee discuss and decide what type of ad-hoc committee to set up, and for those who are not on the Executive Committee to let the Chair know. The Executive Committee will return to the Board at the next meeting to set policy rather than approve individual projects.
8. Approval of New Peninsula Clean Energy Rates to be Effective July 1, 2023 with a Net 5% Discount in Generation Charges for ECOplus Compared to PG&E Generation Rates (Action) Justin Pine, Strategic Accounts Manager, gave a presentation including the PG&E June 1, 2023 rate change, an explanation of the E-TOU-C rate, information in the E-TOU-C rate change, and the Peninsula Clean Energy rate change and bill impact.
Director Loraine clarified that there are two parts to the recommendation, one in response to PG&Es rates but the other part is an ongoing program that Peninsula Clean Energy has already begun. Justin explained that the statewide transition in 2021 changed the default rate from all Investor Owned Utilities (IOUs) and Community Choice Aggregation (CCAs) to the E-TOU-C rate. The rate schedule that customers can choose and is the dafult when they start service with PG&E and Peninsula Clean Energy.
Director Romero asked what the chances are of the Canary Media article on assumption of rates.
Chair DeGolia noted that this isn’t on the agenda but there are a lot of issues around this, and that there will be assessment of the impacts as this would be changing rates from a usage basis to household income.
MOTION: Director Hindi moved, seconded by Director Ragsdale to Approve a Resolution authorizing staff to calculate and implement new Peninsula Clean Energy ECOplus rates to be effective July 1, 2023 to reflect changes to PG&E rates happening June 1, 2023 ensuring a minimum net 5% discount.
MOTION PASSED: 20-1 (Absent: San Mateo County, South San Francisco)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Pine X
San Mateo County Director Mueller X
Atherton Director DeGolia X
Belmont Director Mates X
Brisbane Director Mackin X
Burlingame Director Colson X
Colma Director Gonzalez X
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13 Item No. 1
Daly City Director Daus-Magbual X
East Palo Alto Director Romero X
Foster City Director Hindi X
Half Moon Bay Director Rarback X
Hillsborough Director Ragsdale X
Los Banos Director Llanez X
Menlo Park Director Nash X
Millbrae Director Fung X
Pacifica Director Bigstyck X
Portola Valley Director Aalfs X
Redwood City Director Martinez Saballos X
San Bruno Director Medina X
San Carlos Director Venkatesh X
San Mateo Director Loraine X
South San Francisco Director Coleman X
Woodside Director Bryant X
Total 20 1 2
9. Board Members’ Reports
Director Bigstyck shared that the Pacifica Pride Parade will be held on June 3, 2023.
CLOSED SESSION
The Board went into closed session at 8:55 p.m. and returned from closed session at 9:51 p.m. with no reportable action.
ADJOURNMENT
Meeting was adjourned at 9:51 p.m.
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14 PENINSULA CLEAN ENERGY AUTHORITY
Board Correspondence
DATE: June 1, 2023
BOARD MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: Majority Present
TO: Honorable Peninsula Clean Energy Authority (PCE) Board of Directors FROM: Board Committee on Citizens Advisory Committee Recruitment SUBJECT: Appointment of Members to Citizens Advisory Committee (CAC) RECOMMENDATION:
Adopt a Resolution Appointing Members to the Peninsula Clean Energy Authority Citizens Advisory Committee.
BACKGROUND:
On February 23, 2017, the Peninsula Clean Energy Board of Directors approved a proposal and a resolution approving the formation of a Citizens Advisory Committee (CAC) and indicating that it should consist of 11 to 15 members. On May 24, 2017, the Board of Directors appointed 15 members to the Citizens Advisory Committee (CAC).
As outlined by the Board of Directors, the general term for CAC members is three years.
However, initial CAC members were appointed to staggered terms of either one year, two years, or three years. CAC members are eligible for re-appointment for up to three total terms.
Three CAC members have terms ending in 2023: Michael Closson, Katie Green, and Desiree Thayer. Two members requested to be re-appointed to another three-year term:
Michael Closson and Desiree Thayer. Katie Green did not seek reappointment to the Committee.
In addition, four CAC members, Joe Fullerton, Michael Garvey, Ed Love, and Bryan Tran, stepped down from the Committee before their term ended, creating four additional openings.
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15 Peninsula Clean Energy staff publicly solicited applications to gather a pool of potential appointees. Twenty-two applications were received, and all candidates were invited to interview with a subcommittee of the Board of Directors consisting of Donna Colson, Dave Pine, and Pranita Venkatesh. CAC members seeking re-appointment were evaluated amongst the new pool of applicants, with overall contributions and history of CAC meeting attendance considered.
Discussion:
The Board Subcommittee on Citizens Advisory Committee Recruitment recommends that the Peninsula Clean Energy Board of Directors reappoint the two CAC members whose three-year terms expires in 2023 and who requested reappointment. These members are Michael Closson of Menlo Park and Desiree Thayer of Burlingame.
The Board Committee on Citizens Advisory Committee Recruitment also recommends the Board appoint the following applicants as new appointees. • Mele Heimuli of East Palo Alto
• Aurelio Huizar of Burlingame
• Gail Lee of San Bruno
• Shreyas Sudhakar of Menlo Park
• Robert Whitehair of San Mateo
More information on their qualifications is included in Attachment 1 to the Resolution accompanying this memo.
PCE - 16
16 RESOLUTION NO. _____________
PENINSULA CLEAN ENERGY AUTHORITY, COUNTY OF SAN MATEO,
STATE OF CALIFORNIA
* * * * * *
RESOLUTION APPOINTING MEMBERS TO THE PENINSULA CLEAN ENERGY
AUTHORITY CITIZENS ADVISORY COMMITTEE (CAC)
______________________________________________________________ RESOLVED, by the Peninsula Clean Energy Authority of the County of San Mateo, State of California (“Peninsula Clean Energy” or “PCE”), that WHEREAS, PCE was formed on February 29, 2016; and
WHEREAS, Section 3.5 of the PCE Joint Powers Agreement states that the “Board may establish any advisory commissions, boards, and committees as the Board deems appropriate to assist the Board”; and
WHEREAS, PCE believes that establishment of an advisory committee, made up of members drawn from the community, would assist PCE in carrying out its mission; and
WHEREAS, the Board approved the creation of a Citizens Advisory Committee (“Committee” or “CAC”) on February 23, 2017, to be appointed by the PCE Board through an application process including review and recommendation by a committee of the PCE Board; and
PCE - 17
17 WHEREAS, the Board appointed fifteen members to the Citizens Advisory Committee on May 24, 2017, and
WHEREAS, there are three members whose terms are expiring in 2023 and who are eligible for reappointment, and
WHEREAS, two members of the CAC sought reappointment,
WHEREAS, there are four additional members of the CAC who are stepping down from their seats and for which new appointments are needed, and WHEREAS, the Board publicly solicited applications for the Citizens Advisory Committee, these applications were reviewed by a Subcommittee of Board Members in April 2023, and that Subcommittee has recommended specific applicants for appointment.
NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Board appoints the individuals listed in Attachment 1 hereto as members of the Citizens Advisory Committee for the term 2023-2026.
* * * * * *
PCE - 18
18 Attachment 1
June 2023 Recommendations for Appointment1 to the Peninsula Clean Energy Citizens Advisory Committee
Term Name City Selected Background
Renewed
Term
Michael
Closson
Menlo Park Former CAC Chair and Executive Director of Acterra.
Advocated for Community Choice Aggregation in San
Mateo County and served on the original Peninsula
Clean Energy formation committee.
Renewed
Term
Desiree
Thayer
Burlingame Former CAC Chair. Active in engaging youth across San Mateo County with the Burlingame Citizens
Environmental Council. Extensive outreach and
legislative volunteer experience through Oxfam.
New Term Mele
Heimuli
East Palo
Alto
Community affordable housing advocate and former
office manager for a local family construction
business. Eager to contribute to neighborhood and
community as a member of the CAC.
New Term Aurelio
Huizar
Burlingame Program Coordinator for El Concilio conducting outreach across San Mateo County and helping
income-qualified residents enroll in energy utility bill discounts such as CARE, usually in Spanish.
New Term Gail Lee San Bruno Sustainability Director for UCSF and former Director of Environmental Health and Safety for Mills Hospital.
Brings deep experience of energy use in health care
settings.
New Term Shreyas
Sudhakar
Menlo Park Entrepreneur leading a startup focused on residential electrification through heat pump technology.
Interested in shaping electrification initiatives to
accelerate the transition to clean electricity.
New Term Robert
Whitehair
San Mateo Co-leader of the San Mateo Climate Action Team.
Active community champion and spokesperson for
building electrification. Recipient of the Peninsula
Clean Energy All-Electric Leader Award for
Outstanding Residential Modernization.
1 The length of the appointment is three years, from June 2023 until June 2026.
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19 PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: June 13, 2023
BOARD MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority (PCEA) Board of Directors FROM: Jan Pepper, Chief Executive Officer
SUBJECT: CEO Report
REPORT
With Thanks and Gratitude
It has been such a privilege to serve as your Chief Executive Officer for the first seven years of Peninsula Clean Energy’s existence. The opportunity to start-up a new public agency, with a mission to reduce greenhouse gas emissions through cleaner and greener electricity has been my dream position! Thank you to all of you on the Board for your willingness and support for Peninsula Clean Energy to lead the energy industry in implementing one of the most aggressive renewable energy goals in the world, namely delivering 100% renewable energy on a 24/7 basis by 2025 (or 2027). And at the same time, we are delivering this superior energy product at a cost savings to our customers.
From day one, we have accelerated the State’s clean energy goals, and we continue to do that as we use this clean electricity to decarbonize transportation and buildings.
Demonstrating that clean electricity is less expensive for customers is critical for encouraging adoption across the state, country, and the world, ultimately leading to a more sustainable and affordable energy future for all.
All of this is possible because of the amazing staff here at Peninsula Clean Energy. It has been a real joy to work with such a talented and dedicated group of people. From our small team working at the long white desk in the Office of Sustainability back in 2016, to the 40 team members we now have, it has been incredibly satisfying and fulfilling to have built this organization to this point.
As I transition to a different role and empower the next generation to carry on this important work, I look forward to continuing to spread the word about what we have achieved and will continue to achieve here at Peninsula Clean Energy.
PCE - 20
20 Staffing Updates
We are currently recruiting for the following open positions. The job descriptions can be found on the website. If you know of any great candidates, please send them our way.
Power Resources Analyst / Specialist
Account Services Specialist
Senior Analyst, Account Services
Senior Manager, Local Power Development
Chief Financial Officer
CalCCA Conference Awards
At this year’s CalCCA Annual Conference in San Diego, Peninsula Clean Energy was the recipient of two Community Impact Awards. It was an incredible honor to be recognized by our peers for the innovative ways we make an impact on our community.:
• In the Equity category, Peninsula Clean Energy was awarded first-place for our Outreach Grants program. Recognition for the tremendous work in this area goes to Kirsten Andrews-Schwind. o PCE Staff was asked to put together a short video detailing our Outreach Grants program for the event. A link to that event can be found here:
https://youtu.be/8WcMs92f86c.
• In the Decarbonization category, Peninsula Clean Energy, along with our partners East Bay Community Energy and Silicon Valley Clean Energy, were awarded the runners-up for our Reach Code Initiative. Recognition for the excellent work in this area goes to Rafael Reyes and Blake Herrschaft.
Presentations and Speaking Events
One of my goals and objectives from the board is to seek out speaking opportunities to evangelize the work we are doing at PCE, and in particular, the work we are doing on the 24/7 renewables goal. With the January 10 publishing of “Achieving 24/7 Renewable Energy by 2025”, the number of opportunities has increased:
• I recorded a podcast on The Decarbonization Race, sponsored by Cleartrace. The podcast, “Pioneer Portrait: Inside Jan Pepper’s Push to Provide 24/7 Renewable Energy for Californians” was published on June 12 and can be found here. • On June 22, I will be presenting our 24/7 results to an international audience at the UN Energy Compact Webinar: “This webinar will focus on two great examples of businesses on a journey to achieve 24/7 CFE (carbon free energy) and decarbonization. Peninsula Clean Energy, a community choice aggregator serving PCE - 21
21 21 cities and towns in the Bay Area set a goal to deliver 100% renewable energy to match demand on an hour-by-hour basis by 2025. NEOM Energy is currently pursuing groundbreaking efforts in building a megacity in Saudi Arabia powered by 100 percent clean energy, through renewable solar, wind, and green hydrogen-based energy.” • On June 27, I will be presenting our 24/7 renewable energy work at a workshop on “Loads, Resources and Reliability with more 24/7 Carbon Free Energy”, sponsored by the Regulatory Assistance Project (RAP). “The goal of this webinar is to begin a discussion regarding the grid and resource data required to effectively plan for and integrate 24/7 CFE transition portfolios.”
California Community Power (CC Power)
Peninsula Clean Energy has been participating in an ad hoc committee at CC Power to start actively gathering information on the opportunity to contract for offshore wind due to be developed offshore California toward the end of this decade. To that end, CC Power issued a Request for Information (RFI), with responses received from 4 of the BOEM (Bureau of Ocean Energy Management) Lease-Holders and a renewable energy developer with off-shore wind experience. Mehdi Shahriari and Roy Xu from the PCE power resources team have been actively engaged with the CCA working group along with representatives from 3CE and RCEA. I have been participating on the board level Ad Hoc Committee. A presentation on the activities to date and recommendations on next steps will be made at the CC Power board meeting on June 21.
Other Meetings and Events Attended by CEO
Attend weekly and monthly CalCCA Board and Executive Committee meetings.
Attend monthly California Community Power (CCPower) board meetings.
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22 PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: June 16, 2023
BOARD MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Shawn Marshall, Chief Operating Officer, Peninsula Clean Energy Authority
Nelly Wogberg, Executive Assistant to the Chief Executive Officer, Board Clerk, and Office Manager
SUBJECT: Recognition of Chief Executive Officer, Jan Pepper Upon Retirement RECOMMENDATION:
Honor and recognize contributions made by Chief Executive Officer, Jan Pepper, on her retirement.
BACKGROUND:
The Peninsula Clean Energy Authority, founded in 2016, is the community choice aggregation (CCA) agency for San Mateo County and the City of Los Banos. Jan Pepper joined Peninsula Clean Energy in May 2016 as the first employee and founding Chief Executive Officer of the agency. Under her leadership, Peninsula Clean Energy has grown to a team of nearly 40 professionals and is a recognized leader within the community choice energy industry. Notable Peninsula Clean Energy accomplishments under Jan’s leadership include:
• Saving PCE customers $107 Million since 2016
• Reducing greenhouse gas emissions from electricity by 98% as compared to 2016 emissions
• Publishing two industry-leading White Papers on 100% Renewable Energy on a 24/7 time-coincident basis
• Serving as a founding CCA Board member of Cal-CCA and California Community Power
• Expanding Peninsula Clean Energy service territory to include the City of Los Banos in 2020
• Developing and offering robust energy programs for residential and commercial customers. Noteworthy programs have included:
PCE - 23
23 o Community Outreach Grants
o EV Ride-Hailing Program with Lyft
o Used and New EV Rebates
o Building Electrification Programs and Awards
o Home Upgrade Program
o Creation of a power portfolio that includes over 800 MW of new renewable power including development of Wright Solar in Los Banos, the largest utility scale solar project developed on behalf of a CCA in California Jan plans to stay engaged in the energy and utility industry and will support Peninsula Clean Energy as an advisory consultant over the next six months, ensuring a seamless leadership transition and advancing Peninsula Clean Energy’s 24/7 goals.
DISCUSSION:
Members of the Board are invited to share words of appreciation for Jan Pepper.
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24 PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: June 12, 2023
COMMITTEE MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: Majority Vote
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Andy Stern, Interim Chief Financial Officer
SUBJECT: Proposed Fiscal Year 2023-2024 Budget and 5-year Projections RECOMMENDATION:
Approve Proposed Fiscal Year 2023-2024 (July 1, 2023, through June 30, 2024) budget with an amount of $350,657,317 as a not-to-exceed amount of Total Operating Expenses.
BACKGROUND:
On May 16, 2023, Staff presented a draft Fiscal Year 2023-2024 budget to the Audit & Finance Committee to solicit comments and input. Staff presented the same draft budget to the full Board of Directors on May 25, 2023. Staff then presented a version of the budget updated with the most current assumptions to the Audit and Finance Committee and to the Executive Committee in separate meetings on June 12, 2023.
DISCUSSION:
Fiscal Year 2023-2024 (July 1, 2023, through June 30, 2024) budget presentation and details will be provided for review. The bottom-up approach included discussions with the department heads to develop their areas of the budget and with the Peninsula Clean Energy CEO and COO to include cross-cutting elements of the budget. The final budget has been updated to reflect additional refinement of select revenue and expense categories.
At its meeting on June 8, 2023, the Citizens Advisory Committee made the following recommendation:
The CAC appreciates the significant work that went into developing the budget and the budget details that were shared with us. We support the creation of an ad-hoc subcommittee, including a CAC member, to make a recommendation on what to do with excess FY24 funds. We would like to receive programmatic budget information in order to continue to advise on the potential uses of the excess funds, specifically focused on programmatic funding moving forward. The CAC would like to recommend Steven Booker to serve on that subcommittee.
PCE - 25
25 The resolution for Board approval reflects a Not-to-Exceed level of Total Operating Expenses allowing for various categories to be above or below the planned level as long as the Total Operating Expenses do not exceed the requested level of $350,657,317 for the full Fiscal Year 2023-2024.
ATTACHMENTS:
The final version of the proposed Fiscal Year 2023-2024 Budget and 5-year Projections will be distributed during the meeting.
PCE - 26
26 RESOLUTION NO. _____________
PENINSULA CLEAN ENERGY AUTHORITY, COUNTY OF SAN MATEO, STATE OF
CALIFORNIA
* * * * * *
RESOLUTION THAT THE BOARD OF DIRECTORS APPROVE THE FISCAL YEAR 2023-2024 BUDGET WITH TOTAL OPERATING EXPENSES NOT TO EXCEED $350,657,317
______________________________________________________________ RESOLVED, by the Board of Directors of the Peninsula Clean Energy Authority (PCEA) of the County of San Mateo, State of California, that WHEREAS, PCEA Staff reviewed a draft budget for Fiscal Year 2023-2024 and the underlying assumptions with the Audit and Finance Committee at its meeting on May 16, 2023 to solicit input and recommended changes, and; WHEREAS, PCEA Staff reviewed a draft budget for Fiscal Year 2023-2024 and the underlying assumptions with the Board of Directors at its meeting on May 25, 2023 to solicit input and recommended changes, and;
WHEREAS, PCEA Staff reviewed an updated version of the budget, presented as the proposed and final version of the budget for the Fiscal Year 2023-2024 with the most updated and current information available with the Audit and Finance Committee on June 12, 2023, and;
WHEREAS, the Audit and Finance Committee of the Peninsula Clean Energy Authority reviewed such final version of the budget for Fiscal Year 2023-2024 and PCE - 27
27 approved a resolution at its meeting on June 12, 2023 recommending to the Board of Directors approval at the Board’s meeting on June 22, 2023.
NOW, THEREFORE, IT IS HEREBY RESOLVED that the PCEA Board of Directors approves the Fiscal Year 2023-2024 budget with Total Operating Expenses not to exceed $350,657,317.
* * * * * *
PCE - 28
28 Item No. 8
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: June 9, 2023
BOARD MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: Majority Present
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Jan Pepper, Chief Executive Officer
Roy Xu, Director of Power Resources
Sara Maatta, Power Resources and Compliance Manager
SUBJECT: Approve Resolution Delegating Authority to Chief Executive Officer to Execute Power Purchase Agreement and any necessary ancillary documents, including potential Replacement PPA(s) with the same terms and conditions as the agreement presented to the Board except for any necessary administrative changes, with SunZia Wind PowerCo LLC or an affiliate, with a Power Delivery Term of 15 years starting at the Commercial Operation Date on or about September 30, 2026, in an amount not to exceed $858 million.
RECOMMENDATION:
Approve Resolution Delegating Authority to Chief Executive Officer to Execute Power Purchase Agreement and any necessary ancillary documents, including potential Replacement PPA(s) with the same terms and conditions as the agreement presented to the Board except for any necessary administrative changes, with SunZia Wind PowerCo LLC or an Affiliate of SunZia Wind PowerCo LLC, with a Power Delivery Term of 15 years starting at the Commercial Operation Date on or about September 30, 2026, in an amount not to exceed $858 million.
BACKGROUND:
The Board set a goal for Peninsula Clean Energy to procure 100% of its energy supply from 24/7 renewable energy by 2027 on a 99% time-coincident basis. One critical technology that will help Peninsula Clean Energy to meet this goal is wind energy. Staff conducted a preliminary analysis of the necessary resources to attain this goal and found that Peninsula Clean Energy should pursue as much capacity from wind resources as possible, and particularly, that Peninsula Clean Energy should pursue capacity from out-of-state wind resources. Out-of-state wind resources tend to have excellent fit with PCE - 29
29 Item No. 8
Peninsula Clean Energy’s portfolio, because out-of-state wind tends to generate energy in winter and overnight periods, when the solar resources in our portfolio do not generate as much energy.
2021 Renewable Energy and Storage Request for Offers
Peninsula Clean Energy launched a request for offers (RFO) in late 2021 targeting procurement of renewable energy and storage resources to help meet our internal goals and regulatory requirements.
Peninsula Clean Energy received a robust response to the RFO from 34 participants for 70 different projects. Staff evaluated these projects based on value to Peninsula Clean Energy, development status, project viability, project team experience, compliance with workforce policy and environmental impact.
Staff conducted extensive analysis to identify the top projects to shortlist. The SunZia Wind project was determined to be in the top tier of projects that would provide the most value to Peninsula Clean Energy.
Staff reviewed the project with the CEO and then entered into exclusive negotiations with the project. Since early 2022, Peninsula Clean Energy has worked with the project developer on negotiating the Power Purchase Agreement.
Additionally, staff met with a subcommittee of Board members convened by Staff in June 2023 to review the recommended contract with SunZia Wind PowerCo LLC.
Overview of Project
Project Name SunZia Wind
Technology Wind
Capacity 3,515 MW (Total project)
Peninsula Clean Energy Share 220 MW
Annual Generation 694,477 MWh
Commercial Operation Date 9/30/2026
Project Owner SunZia Wind PowerCo LLC
Developer Pattern Energy Group LP (“Pattern”)
Location Lincoln, Torrance, and San Miguel
Counties, New Mexico
The SunZia Wind Project is a new wind project with a total capacity of 3,515 MW located in New Mexico in the counties of Lincoln, Torrance, and San Miguel. The project is located on over 1,000,000 acres of private and state-owned land. The project will interconnect to a new SunZia Transmission Line that is also being constructed by Pattern. The SunZia Transmission Line will carry the project energy to the Pinal Central substation in central Arizona, and Pattern has secured firm transmission rights with third party transmission PCE - 30
30 Item No. 8
providers to deliver energy to the Palo Verde Substation in Arizona. The Palo Verde Substation is considered to be a part of CAISO, and Peninsula Clean Energy can receive delivery of the energy at the Palo Verde Substation. Pattern will retain the scheduling coordination rights for the wind project.
The SunZia Wind project is eligible for Resource Adequacy as long as Peninsula Clean Energy can successfully obtain Import Allocation Rights at Palo Verde from CAISO.
Peninsula Clean Energy is confident that we can obtain at least a moderate amount of the necessary Import Allocations Rights, which will allow us to count a substantial portion of the SunZia Wind capacity for Resource Adequacy purposes.
The Commercial Operation Date is September 30, 2026. The project is expected to start construction later this year.
Under the contract, Peninsula Clean Energy will purchase the renewable energy generated by our share of the facility at a fixed-price rate per MWh with no escalation, for the full term of the contract (15 years). Peninsula Clean Energy will receive energy, renewable energy credits, and (contingent on receiving Import Allocation Rights from CAISO) resource adequacy. The output from the project represents approximately 13% of Peninsula Clean Energy load over the contract term.
Developer
SunZia Wind PowerCo LLC is a wholly owned, indirect subsidiary of Pattern. The project is being developed by Pattern, which has a team with a wide range of experience developing and operating various energy technologies. Pattern owns over 6 GW of operating wind, solar and storage projects, including the 1,050 MW Western Spirit Wind Project located close to SunZia in New Mexico. Pattern currently operates over 6 GW of renewable energy projects in the US.
Environmental Review
Peninsula Clean Energy staff worked with several environmental non-profits to develop a system for evaluating the environmental impact of projects. Specifically, we asked each bidder to provide a geospatial footprint of their project. During the evaluation period, staff studied the geospatial footprint of the project to evaluate whether the project is located in a restricted or high conflict area for renewable energy or storage development. These areas include but are not limited to:
• Protected areas at the federal, state, regional, local level (e.g., County-designated conservation areas, BLM Areas of Critical Environmental Concern, critical habitat for listed species, national, state, county parks, etc.). • Identified and mapped important habitat and habitat linkages, especially for threatened and endangered species (either state or federally listed).
PCE - 31
31 Item No. 8
Further, projects that are located in areas designated for renewable energy development or in areas that are not suitable for other developmental activities, such as EPA re-power sites, receive positive environmental scores.
For this project, the analysis showed that the project was not located in a protected area based on the USGS Protected Areas Database1 (PAD-US).
The primary land use approval document (Record of Decision) was issued by the Bureau of Land Management on May 18, 2023.
Workforce Requirements
Pattern Energy Group LP will pay New Mexico prevailing wage and provide full health care coverage to all onsite employees. Pattern is currently in discussion with the International Brotherhood of Electrical Workers regarding the project construction.
Project Bifurcation or Transition and Replacement PPA(s) In order to facilitate the financing of the project, SunZia Wind PowerCo LLC requires the ability to bifurcate or transition the project to an Affiliate of SunZia Wind PowerCo LLC at a future date. If such bifurcation or transition were to occur, the Affiliate would need to enter into one or two Replacement PPAs with Peninsula Clean Energy and terminate the original PPA. The Replacement PPAs would have the same terms and conditions as the original PPA except for those administrative changes necessary to effectuate the transition or bifurcation. The Replacement PPA(s) need to be pre-approved by Peninsula Clean Energy’s Board for this transaction to work. The Board is being asked to approve the execution of such Replacement PPA(s) as part of tonight’s motion.
DISCUSSION:
The Strategic Plan approved by the Board set Peninsula Clean Energy’s Priority One to “design a power portfolio that is sourced by 100% renewable energy by 2027 that aligns supply and consumer demand on a 24x7 basis”. Out-of-state wind energy will play a key role in meeting Peninsula Clean Energy’s renewable energy goals by providing energy during winter and overnight periods, an excellent complement to the solar resources already in our portfolio.
Staff recommends that the Board approve the SunZia Wind PPA, including pre-approving a potential Replacement PPA with the same terms and conditions as the agreement presented to the Board except for any necessary administrative changes.
FISCAL IMPACT:
1 USGS PAD-US: https://www.usgs.gov/core-science-systems/science-analytics-and-synthesis/gap/science/protected-areas PCE - 32
32 Item No. 8
The fiscal impact of the SunZia Wind project will not exceed $858 million over the 15- year term of the Agreement. There will be no fiscal impact to the FY 23/24 budget.
STRATEGIC PLAN:
The SunZia project supports the following objectives in Peninsula Clean Energy’s strategic plan:
• Priority 1: Design a power portfolio that is sourced by 100% renewable energy by 2027 that aligns supply and consumer demand on a 24/7 basis • Power Resources Goal 1: Secure sufficient, low-cost, clean sources of electricity that achieve Peninsula Clean Energy's priorities while ensuring reliability and meeting regulatory mandates
ATTACHMENTS:
SunZia Wind Power Purchase Agreement (Redacted Version) PCE - 33
33 RESOLUTION NO. _____________
PENINSULA CLEAN ENERGY AUTHORITY, COUNTY OF SAN MATEO, STATE OF
CALIFORNIA
* * * * * *
RESOLUTION DELEGATING AUTHORITY TO CHIEF EXECUTIVE OFFICER TO
EXECUTE POWER PURCHASE AGREEMENT AND ANY NECESSARY ANCILLARY
DOCUMENTS, INCLUDING POTENTIAL REPLACEMENT PPA(S) WITH THE SAME
TERMS AND CONDITIONS AS THE AGREEMENT PRESENTED TO THE BOARD
EXCEPT FOR ANY NECESSARY ADMINISTRATIVE CHANGES, WITH SUNZIA WIND POWERCO LLC WITH A POWER DELIVERY TERM OF 15 YEARS STARTING AT THE COMMERCIAL OPERATION DATE ON OR ABOUT SEPTEMBER 30, 2026, IN AN AMOUNT NOT TO EXCEED $858 MILLION.
______________________________________________________________ RESOLVED, by the Peninsula Clean Energy Authority of the County of San Mateo, State of California, that
WHEREAS, the Peninsula Clean Energy Authority (“Peninsula Clean Energy”) was formed on February 29, 2016; and
WHEREAS, Peninsula Clean Energy is purchasing energy, renewable energy, carbon-free energy, and related products and services (the “Products”) to supply its customers; and
PCE - 34
34 WHEREAS, Peninsula Clean Energy conducted a request for offers for renewable energy and storage resources including standalone storage and engaged in negotiations for the SunZia Wind project; and
WHEREAS, Peninsula Clean Energy seeks to execute a Power Purchase Agreement (PPA) to procure renewable energy from 220 MW of capacity from the SunZia Wind project, based on the project’s desirable offering of products, pricing, and terms; and
WHEREAS, in order to facilitate project financing, SunZia Wind PowerCo LLC requires the ability to bifurcate or transition the project to an Affiliate of SunZia Wind PowerCo LLC at a future date, and requires Peninsula Clean Energy to pre-approve a Replacement PPA(s) that would effectuate such project bifurcation or transition; and WHEREAS, any Replacement PPA(s) would have the same terms and conditions as the agreement presented to the Board except for any necessary administrative changes; and
WHEREAS, staff is presenting to the Board for its review the PPA, reference to which should be made for further particulars; and
WHEREAS, the Board wishes to delegate to the Chief Executive Officer authority to execute the Agreement and any other ancillary documents required for said purchase of renewable energy from SunZia Wind PowerCo LLC; and
WHEREAS, the Board’s decision to delegate to the Chief Executive Officer the authority to execute the Agreement is contingent on the SunZia Wind PowerCo LLC Board approving the Agreement’s terms consistent with those presented to the Board.
PCE - 35
35 NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Board delegates authority to the Chief Executive Officer to:
Execute the Agreement and any ancillary documents, including potential Replacement PPA(s) with the same terms and conditions as the agreement presented to the Board except for any necessary administrative changes, with SunZia Wind PowerCo LLC or an affiliate of SunZia Wind PowerCo LLC with terms consistent with those presented, in a form approved by the General Counsel; and for a power delivery term of up to fifteen years, in an amount not to exceed $858 million. * * * * * *
PCE - 36
36 PCE - 37
37 PCE - 38
38 Seller:
Company Name: SunZia Wind PowerCo LLC
Address: 1088 Sansome St.
San Francisco, CA 94111
Attention: General Counsel
Phone No.: (415) 283-4000
Email: [email protected]
Scheduling:
Company Name: SunZia Wind PowerCo LLC
Address: 888 Westheimer Road, Suite 213
Houston, TX 77006
Attention: Manager 24/7 Operations Control Center
Fax No.: (281) 694-2848
Email: [email protected] and [email protected]
Buyer:
Peninsula Clean Energy Authority
2075 Woodside Road
Redwood City, CA 94061
ATTN: Director of Power Resources
Phone No.:
Email: [email protected]
With a copy to:
Peninsula Clean Energy Authority
400 County Center, 6th Floor
Redwood City, CA 94063
Attention: David Silberman, General Counsel
Fax No.: (650) 363-4034
Phone No.: (650) 363-4749
Email: [email protected]
[Signatures on following page.]
PCE - 39
39 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the Effective Date.
SELLER
SunZia Wind PowerCo LLC
By:
Name:
Title:
BUYER
Peninsula Clean Energy Authority
By:
PCE Executive Officer
PCE - 40
40 PCE - 41
41 TABLE OF CONTENTS
Page
ii
ARTICLE 5 TAXES ........................................................................................................................ 40
5.1 Allocation of Taxes and Charges ............................................................................. 40
5.2 Cooperation .............................................................................................................. 41 ARTICLE 6 MAINTENANCE OF THE FACILITY ...................................................................... 41
6.1 Maintenance of the Facility ...................................................................................... 41
6.2 Maintenance of Health and Safety ........................................................................... 42
6.3 Permits and Approvals ............................................................................................. 42
6.4 Energy to Serve Station Use ..................................................................................... 42 ARTICLE 7 METERING ................................................................................................................ 42
7.1 Metering ................................................................................................................... 42
7.2 Meter Verification .................................................................................................... 42 ARTICLE 8 INVOICING AND PAYMENT; CREDIT ................................................................. 43
8.1 Invoicing ................................................................................................................... 43
8.2 Books and Records ................................................................................................... 43
8.3 Payment .................................................................................................................... 43
8.4 Payment Adjustments; Billing Errors....................................................................... 44
8.5 Billing Disputes ........................................................................................................ 44
8.6 Netting of Payments ................................................................................................. 44
8.7 Seller’s Development Security ................................................................................. 44
8.8 Seller’s Performance Security .................................................................................. 45
8.9 First Priority Security Interest in Cash or Cash Equivalent Collateral ..................... 45 ARTICLE 9 NOTICES .................................................................................................................... 46
9.1 Addresses for the Delivery of Notices ..................................................................... 46
9.2 Acceptable Means of Delivering Notice .................................................................. 46 ARTICLE 10 FORCE MAJEURE ................................................................................................... 46
10.1 Definition.................................................................................................................. 46
10.2 No Liability If a Force Majeure Event Occurs ......................................................... 47
10.3 Notice ....................................................................................................................... 48
10.4 Termination Following Force Majeure Event .......................................................... 48 ARTICLE 11 DEFAULTS; REMEDIES; TERMINATION ........................................................... 48
11.1 Events of Default ...................................................................................................... 48
11.2 Remedies; Declaration of Early Termination Date .................................................. 51
11.3 Termination Payment ............................................................................................... 52
11.4 Notice of Payment of Termination Payment ............................................................ 52
11.5 Disputes With Respect to Termination Payment ..................................................... 53 PCE - 42
42 PCE - 43
43 TABLE OF CONTENTS
Page
iv
19.4 Disclosure to Representatives .................................................................................. 62
19.5 Disclosure to Credit Rating Agency ......................................................................... 63
19.6 Public Statements ..................................................................................................... 63 ARTICLE 20 MISCELLANEOUS .................................................................................................. 63
20.1 Entire Agreement; Integration; Exhibits .................................................................. 63
20.2 Amendments ............................................................................................................. 63
20.3 No Waiver ................................................................................................................ 63
20.4 No Agency, Partnership, Joint Venture or Lease ..................................................... 63
20.5 Severability ............................................................................................................... 63
20.6 Mobile-Sierra............................................................................................................ 64
20.7 Counterparts ............................................................................................................. 64
20.8 Facsimile or Electronic Delivery .............................................................................. 64
20.9 Binding Effect .......................................................................................................... 64
20.10 No Recourse to Members of Buyer .......................................................................... 64
20.11 Change in Electric Market Design ........................................................................... 64 Exhibits:
Exhibit A Description of Facility
Exhibit B Facility Construction and Commercial Operation Exhibit C Emergency Contact Information
Exhibit D Guaranteed Energy Production Damages Calculation Exhibit E Progress Reporting Form
Exhibit F Form of Commercial Operation Date Certificate Exhibit G Form of Installed Capacity Certificate
Exhibit H Form of Construction Start Date Certificate
Exhibit I Form of Letter of Credit
Exhibit J Insurance
Exhibit K Form of Replacement RA Notice
Exhibit L Annual Energy Forecast and Monthly Expected Available Capacity and Delivered Energy
Exhibit M Operating Restrictions
Exhibit N
PCE - 44
44 PCE - 45
45 2
“Attestation” has the meaning set forth in Section 4.1(b). “Availability Incentive Payment” has the meaning set forth in the CAISO Tariff. “Available Capacity” means the capacity from Buyer’s Share of the Facility, expressed in whole MWs, that is available at a particular time to generate Energy. “Balancing Authority” has the meaning set forth in the CAISO Tariff. “Bankrupt” means with respect to any entity, such entity that (a) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankruptcy, insolvency, reorganization or similar Law, (b) has any such petition filed or commenced against it which remains unstayed or undismissed for a period of ninety (90) days, (c) makes an assignment or any general arrangement for the benefit of creditors, (d) otherwise becomes bankrupt or insolvent (however evidenced), (e) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed with respect to it or any substantial portion of its property or assets, or (f) is generally unable to pay its debts as they fall due. “Bid” has the meaning set forth in the CAISO Tariff.
“Business Day” means any day except a Saturday, Sunday, the Friday after the U.S.
Thanksgiving holiday, or a Federal Reserve Bank holiday in California. A Business Day begins at 8:00 a.m. and ends at 5:00 p.m. local time for the Party sending a Notice, or payment, or performing a specified action.
“Buyer” has the meaning set forth on the Cover Sheet.
“Buyer Default” means a failure by Buyer to perform its obligations hereunder. “Buyer’s Share” means the percentage that is equal to the quotient of the Guaranteed Capacity divided by the Installed Capacity, not to exceed one hundred percent (100%), as such percentage may change from time to time with changes to the Installed Capacity, if applicable. “Buyer’s WREGIS Account” has the meaning set forth in Section 4.8(a). “CAISO” means the California Independent System Operator Corporation or any successor entity performing similar functions.
“CAISO Approved Meter” means a CAISO approved revenue quality meter or meters, CAISO approved data processing gateway or remote intelligence gateway, telemetering equipment and data acquisition services sufficient for monitoring, recording and reporting, in real time, all Energy produced by the Facility less Electrical Losses and Station Use, in accordance with the CAISO Tariff.
“CAISO Grid” has the same meaning as “CAISO Controlled Grid” as defined in the CAISO Tariff.
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meeting (or its equivalent) of Seller or, if there are no such rights, ownership of at least fifty percent (50%) of the equity or other ownership interest in Seller, or (ii) the right to direct the policies or operations of Seller, and (b) any direct or indirect change in the Control of Seller shall not be a Change of Control hereunder if the entity acquiring Control of Seller, directly or indirectly, is a Qualified Transferee and Buyer is given written Notice of the change of Control within five (5) Business Days of its occurrence.
“Commercial Operation” has the meaning set forth in Exhibit B. “Commercial Operation Date” means the date on which Commercial Operation is achieved.
“Commercial Operation Delay Damages” means an amount equal to “Compliance Actions” has the meaning set forth in Section 3.13. “Compliance Expenditure Cap” has the meaning set forth in Section 3.13. “Confidential Information” has the meaning set forth in Section 19.1. “Construction Start” has the meaning set forth in Exhibit B. “Construction Start Date” has the meaning set forth in Exhibit B. “Contract Price” has the meaning set forth on the Cover Sheet. “Contract Revenues” has the meaning set forth in Section 4.5(b). “Contract Term” has the meaning set forth in Section 2.1. “Contract Year” means a period of twelve (12) consecutive months. The first Contract Year shall commence on the Commercial Operation Date, and each subsequent Contract Year shall commence on the anniversary of the Commercial Operation Date. “Control” (including, with correlative meanings, the terms “Controlled by” and “under common Control with”), as used with respect to any Person, shall mean (a) the direct or indirect right to cast more than fifty percent (50%) of the votes exercisable at an annual general meeting (or its equivalent) of such Person or, if there are no such rights, ownership of more than fifty percent (50%) of the equity or other ownership interest in such Person, or (b) the right to direct the policies or operations of such Person.
“Costs” means, with respect to the Non-Defaulting Party, brokerage fees, commissions and other similar third-party transaction costs and expenses reasonably incurred by such Party either in terminating any arrangement pursuant to which it has hedged its obligations or entering into new arrangements which replace this Agreement; and all reasonable attorneys’ fees and other expenses incurred by the Non-Defaulting Party in connection with terminating this Agreement.
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“Forced Facility Outage” means an unexpected failure of one or more components of the Facility or any outage on the Transmission System that prevents Seller from making power available at the Delivery Point and that is not the result of a Force Majeure Event. “Forced Labor” has the meaning set forth in Section 13.4. “Forward Certificate Transfers” has the meaning set forth in Section 4.8(a). “Future Environmental Attributes” shall mean any and all emissions, air quality or other environmental attributes (other than Green Attributes or Renewable Energy Incentives) under the RPS regulations and/or under any and all other international, federal, regional, state or other Law, rule, regulation, bylaw, treaty or other intergovernmental compact, decision, administrative decision, program (including any voluntary compliance or membership program), competitive market or business method (including all credits, certificates, benefits, and emission measurements, reductions, offsets and allowances related thereto) that are attributable, now, or in the future, to Buyer’s Share of the generation of electrical energy by the Facility. Future Environmental Attributes do not include (i) any energy, capacity, reliability or other power attributes from the Facility, (ii) investment or production tax credits associated with the construction or operation of the Facility and other financial incentives, including in the form of credits, reductions, or allowances associated with the Facility that are applicable to a state or federal income taxation obligation, (iii) fuel-related subsidies or “tipping fees” that may be paid to Seller to accept certain fuels, or local subsidies received by the generator for the destruction of particular preexisting pollutants or the promotion of local environmental benefits, or (iv) emission reduction credits encumbered or used by the Facility for compliance with local, state, or federal operating and/or air quality permits. “Gains” means, with respect to any Party, an amount equal to the present value of the economic benefit to it, if any (exclusive of Costs), resulting from the termination of this Agreement for the remaining Contract Term, determined in a commercially reasonable manner. Factors used in determining the economic benefit to a Party may include, without limitation, reference to information supplied by one or more third parties, which shall exclude Affiliates of the subject Party, including without limitation, quotations (either firm or indicative) of relevant rates, prices, yields, yield curves, volatilities, spreads or other relevant market data in the relevant markets, comparable transactions, forward price curves based on economic analysis of the relevant markets, settlement prices for comparable transactions at liquid trading hubs (e.g., Palo Verde), all of which should be calculated for the remaining Contract Term, and includes the value of Green Attributes and Capacity Attributes.
“Governmental Authority” means any federal, state, provincial, local or municipal government, any political subdivision thereof or any other governmental, congressional or parliamentary, regulatory, or judicial instrumentality, authority, body, agency, department, bureau, or entity with authority to bind a Party at law, including CAISO and WREGIS; provided, however, that “Governmental Authority” shall not in any event include any Party. “Green Attributes” means any and all credits, benefits, emissions reductions, offsets, and allowances, howsoever entitled, attributable to Buyer’s Share of the generation from the Facility, and its displacement of conventional Energy generation. Green Attributes include but are not limited PCE - 52
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to Renewable Energy Credits, as well as: (a) any avoided emissions of pollutants to the air, soil or water such as sulfur oxides (SOx), nitrogen oxides (NOx), carbon monoxide (CO) and other pollutants; (b) any avoided emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride and other greenhouse gases (GHGs) that have been determined by the United Nations Intergovernmental Panel on Climate Change, or otherwise by Law, to contribute to the actual or potential threat of altering the Earth’s climate by trapping heat in the atmosphere; (c) the reporting rights to these avoided emissions, such as Green Tag Reporting Rights. Green Attributes do not include (i) any energy, capacity, reliability or other power attributes from the Facility, (ii) investment or production tax credits associated with the construction or operation of the Facility and other financial incentives, including in the form of credits, reductions, or allowances associated with the Facility that are applicable to a state or federal income taxation obligation, (iii) fuel-related subsidies or “tipping fees” that may be paid to Seller to accept certain fuels, or local subsidies received by the generator for the destruction of particular preexisting pollutants or the promotion of local environmental benefits, or (iv) emission reduction credits encumbered or used by the Facility for compliance with local, state, or federal operating and/or air quality permits. If the Facility is a biomass or landfill gas facility and Seller receives any tradable Green Attributes based on the greenhouse gas reduction benefits or other emission offsets attributed to its fuel usage, it shall provide Buyer with sufficient Green Attributes to ensure that there are zero net emissions associated with the production of electricity from the Facility. “Green-e Certified” means the Green Attributes provided to Buyer pursuant to this Agreement are certified under the Green-e Energy National Standard. “Green-e Energy National Standard” means the Green-e Renewable Energy Standard for Canada and the United States (formerly Green-e Energy National Standard) version 3.5, updated December 15, 2020, as may be further amended from time to time. “Green Tag” means a certificate or other instrument recognized by a Governmental Authority, with one (1) Green Tag representing the Green Attributes associated with one (1) MWh of Energy.
“Green Tag Reporting Rights” means the right of a purchaser of renewable energy to report ownership of accumulated Green Tags in compliance with and to the extent permitted by applicable Law and include, without limitation, rights under Section 1605(b) of the Energy Policy Act of 1992, and any present or future federal, state or local certification program or emissions trading program, including pursuant to the WREGIS Operating Rules.
“Guaranteed Capacity” has the meaning set forth on the Cover Sheet. “Guaranteed Commercial Operation Date” has the meaning set forth in Exhibit B. “Guaranteed Energy Production” has the meaning set forth in Section 4.7(b). “Guaranteed Energy Production Damages” has the meaning set forth in Exhibit D.
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“Guaranteed RA Amount” means Buyer’s Share of the Net Qualifying Capacity of the Facility.
“Hourly Delivery Cap” means the maximum amount of Energy and associated Renewable Energy Credits and Green Tags delivered to the Delivery Point and sold to Buyer in any given hour under this Agreement, which amount shall be equal to Buyer’s Share multiplied by 2,131 MW. “Imbalance Energy” means the amount of Energy, in any given Settlement Period or Settlement Interval, by which the amount of Delivered Energy deviates from the amount of Scheduled Energy.
“Indemnified Party” has the meaning set forth in Section 17.1(a). “Indemnifying Party” has the meaning set forth in Section 17.1(a). “Initial Synchronization” means the initial delivery of Energy from the Facility to the Delivery Point.
“Installed Capacity” means the actual generating capacity of the Facility, measured at the point of interconnection (which point of interconnection is specified in the Interconnection Agreement) and adjusted for ambient conditions on the date of the performance test, as evidenced by a certificate substantially in the form attached as Exhibit G hereto provided by Seller to Buyer, as it may be updated from time to time by delivery of a subsequent certificate from a Licensed Professional Engineer substantially in the form attached as Exhibit G hereto. “Inter-SC Trade” or “IST” has the meaning set forth in the CAISO Tariff. “Interconnection Agreement” means the interconnection agreement entered into by Seller pursuant to which the Facility will be interconnected with the PTO’s Transmission System, and pursuant to which Seller’s Interconnection Facilities and any other Interconnection Facilities will be constructed, operated and maintained during the Contract Term. “Interconnection Facilities” means the interconnection facilities, control and protective devices and metering facilities required to connect the Facility with the PTO’s Transmission System in accordance with the Interconnection Agreement.
“Interest Rate” has the meaning set forth in Section 8.2. “Joint Powers Act” means the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.).
“Joint Powers Agreement” means that certain Joint Powers Agreement dated February 29, 2016 under which Buyer is organized as a Joint Powers Authority in accordance with the Joint Powers Act.
“Law” means any applicable law, statute, rule, regulation, decision, writ, order, decree or judgment, permit or any interpretation thereof, promulgated or issued by a Governmental Authority, and includes the CAISO Tariff.
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“Operating Restrictions” means the operational characteristics of the Facility set forth in Exhibit M.
“Owner” has the meaning set forth in Section 2.2.
“Participating Transmission Owner” or “PTO” means an entity that owns, operates and maintains the Transmission System or distribution lines and associated facilities and/or has entitlements to use certain transmission or distribution lines and associated facilities where the Facility is interconnected. For purposes of this Agreement, the Participating Transmission Owner is set forth in Exhibit A.
“Party” or “Parties” has the meaning set forth in the Preamble. “Performance Measurement Period” has the meaning set forth in Section 4.7(b). “Performance Security” means (i) cash, or (ii) a Letter of Credit, in the amount specified on the Cover Sheet, deposited with Buyer in conformance with Section 8.8. “Performance Security End Date” has the meaning set forth in Section 8.8. “Person” means any individual, sole proprietorship, corporation, limited liability company, limited or general partnership, joint venture, association, joint-stock company, trust, incorporated organization, institution, public benefit corporation, unincorporated organization, government entity or other entity.
“Portfolio Content Category 1” or “PCC1” means any Renewable Energy Credit associated with the generation of electricity from an Eligible Renewable Energy Resource consisting of the portfolio content set forth in California Public Utilities Code Section 399.16(b)(1), as may be amended from time to time or as further defined or supplemented by Law. “Product” has the meaning set forth on the Cover Sheet. “Production Tax Credits” or “PTCs” means production tax credit under Section 45 of the Internal Revenue Code as in effect from time-to-time throughout the Delivery Term or any successor or other provision providing for a federal tax credit determined by reference to renewable electric energy produced from wind or other renewable energy resources for which Seller, as the owner of the Facility, is eligible.
“Progress Report” means a progress report including the items set forth in Exhibit E. “Project” has the same meaning as Facility.
“Project Bifurcation” has the meaning set forth in Section 2.3. “Project Transition” has the meaning set forth in Section 2.3.
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“S&P” means Standard & Poor’s Financial Services LLC (a subsidiary of The McGraw-Hill Companies, Inc.) or its successor.
“Schedule” means the actions of Seller and/or its designated representatives, or Scheduling Coordinator, including Seller’s Transmission Providers, if applicable, of notifying, requesting and confirming to each other and the CAISO the quantity of Energy to be delivered in any given Settlement Interval on any given day or days at a specified Delivery Point. “Scheduled Energy” means the Energy from Buyer’s Share of the Facility that clears under the applicable CAISO market based on the final Schedule developed in accordance with this Agreement, the operating procedures developed by the Parties pursuant to this Agreement, and the applicable CAISO Tariff, protocols and Scheduling practices. “Scheduled Maintenance” has the meaning set forth in Section 6.1. “Scheduling Coordinator” or “SC” means an entity certified by the CAISO as qualifying as a Scheduling Coordinator pursuant to the CAISO Tariff for the purposes of undertaking the functions specified in “Responsibilities of a Scheduling Coordinator,” of the CAISO Tariff, as amended from time to time.
“Security Interest” has the meaning set forth in Section 8.9. “Seller” has the meaning set forth on the Cover Sheet.
“Seller’s WREGIS Account” has the meaning set forth in Section 4.8(a). “Settlement Amount” means the Non-Defaulting Party’s Costs and Losses, on the one hand, netted against its Gains, on the other. If the Non-Defaulting Party’s Costs and Losses exceed its Gains, then the Settlement Amount shall be an amount owing to the Non-Defaulting Party. If the Non-Defaulting Party’s Gains exceed its Costs and Losses, then the Settlement Amount shall be zero dollars ($0). The Settlement Amount shall not include consequential, incidental, punitive, exemplary or indirect or business interruption damages. “Settlement Interval” has the meaning set forth in the CAISO Tariff. “Settlement Period” has the meaning set forth in the CAISO Tariff, which as of the Effective Date is the period beginning at the start of the hour and ending at the end of the hour. “Shared Facilities Agreements” has the meaning set forth in Section 4.12. “Showing Deadline” means the initial deadline that a Scheduling Coordinator must meet to submit its RA Plan, as established by CAISO or any other Governmental Authority. For illustrative purposes only, the CAISO monthly Showing Deadline is approximately forty-five (45) days prior to the RA delivery month.
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Requirements. For illustrative purposes only, pursuant to the applicable CPUC Decisions in effect as of the Effective Date, the monthly compliance showing made in June is for the Showing Month of August.
“Site” means the real property on which the Facility is or will be located, as further described in Exhibit A, and as shall be updated by Seller at the time Seller provides to Buyer an executed certificate of the Construction Start Date, substantially in the form attached as Exhibit H hereto. “Site Control” means that Seller: (a) owns or has the option to purchase the Site; (b) is the lessee or has the option to lease the Site; or (c) is the holder of an easement or an option for an easement, right-of-way grant, or similar instrument with respect to the Site. “Station Use” means:
(a) The Energy produced by the Facility that is used within the Facility to power the lights, motors, control systems and other electrical loads that are necessary for operation of the Facility; and
(b) The Energy produced by the Facility that is consumed within the Facility’s electric energy distribution system as losses.
“SunZia Transmission Line” means that certain 3,000-MW high-voltage (+/-525-kV) transmission line originating at the Facility in New Mexico and terminating near Phoenix, Arizona.
The western terminus of the line will connect to the 500-kV Pinal Central Substation. “SunZia Wind North” means the portion of the Facility located on the northern portion of the Site, as further described and shown on the map in Exhibit A. “SunZia Wind South” means the portion of the Facility located on the southern portion of the Site, as further described and shown on the map in Exhibit A. “Supply Plan” has the meaning set forth in the CAISO Tariff. “System Emergency” means any condition that: (a) requires, as determined and declared by CAISO or a Transmission Provider, automatic or immediate action to (i) prevent or limit harm to or loss of life or property, (ii) prevent loss of transmission facilities or generation supply in the immediate vicinity of the Facility, or (iii) to preserve Transmission System reliability, and (b) directly affects the ability of any Party to perform under any term or condition in this Agreement, in whole or in part.
“Tangible Net Worth” means the tangible assets (for example, not including intangibles such as goodwill and rights to patents or royalties) that remain after deducting liabilities as determined in accordance with generally accepted accounting principles. “Tax” or “Taxes” means all U.S. federal, state and local and any foreign taxes, levies, assessments, surcharges, duties and other fees and charges of any nature imposed by a Governmental Authority, whether currently in effect or adopted during the Contract Term, including ad valorem, PCE - 62
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(a) headings and the rendering of text in bold and italics are for convenience and reference purposes only and do not affect the meaning or interpretation of this Agreement; (b) words importing the singular include the plural and vice versa and the masculine, feminine and neuter genders include all genders; (c) the words “hereof”, “herein”, and “hereunder” and words of similar import shall refer to this Agreement as a whole and not to any particular provision of this Agreement; (d) a reference to an Article, Section, paragraph, clause, Party, or Exhibit is a reference to that Section, paragraph, clause of, or that Party or Exhibit to, this Agreement unless otherwise specified;
(e) a reference to a document or agreement, including this Agreement shall mean such document, agreement or this Agreement including any amendment or supplement to, or replacement, novation or modification of this Agreement, but disregarding any amendment, supplement, replacement, novation or modification made in breach of such document, agreement or this Agreement;
(f) a reference to a Person includes that Person’s successors and permitted assigns;
(g) the term “including” means “including without limitation” and any list of examples following such term shall in no way restrict or limit the generality of the word or provision in respect of which such examples are provided;
(h) references to any statute, code or statutory provision are to be construed as a reference to the same as it may have been, or may from time to time be, amended, modified or reenacted, and include references to all bylaws, instruments, orders and regulations for the time being made thereunder or deriving validity therefrom unless the context otherwise requires; (i) in the event of a conflict, a mathematical formula or other precise description of a concept or a term shall prevail over words providing a more general description of a concept or a term;
(j) references to any amount of money shall mean a reference to the amount in United States Dollars, and references to a LMP shall mean the LMP at the Delivery Point unless expressly provided otherwise;
(k) the expression “and/or” when used as a conjunction shall connote “any or all of”;
(l) words, phrases or expressions not otherwise defined herein that (i) have a generally accepted meaning in Prudent Operating Practice shall have such meaning in this Agreement or (ii) do not have well known and generally accepted meaning in Prudent Operating Practice but that have well known and generally accepted technical or trade meanings, shall have such recognized meanings; and
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efforts to deliver Energy in accordance with the Scheduled Energy. Any CAISO costs or revenues assessed as a result of Imbalance Energy shall be solely for the account of Seller.
3.5 Ownership of Renewable Energy Incentives. Seller shall have all right, title and interest in and to all Renewable Energy Incentives. Buyer acknowledges that any Renewable Energy Incentives belong to Seller. If any Renewable Energy Incentives, or values representing the same, are initially credited or paid to Buyer, Buyer shall cause such Renewable Energy Incentives or values relating to same to be assigned or transferred to Seller without delay. Buyer shall reasonably cooperate with Seller, at Seller’s sole expense, in Seller’s efforts to meet the requirements for any certification, registration, or reporting program relating to Renewable Energy Incentives.
3.6 Future Environmental Attributes.
(a) The Parties acknowledge and agree that as of the Effective Date, Future Environmental Attributes may be created by a Governmental Authority through Laws enacted after the Effective Date. The Parties shall promptly notify each other upon becoming aware of the existence of Future Environmental Attributes and, subject to the final sentence of this Section 3.6(a), Buyer shall have the right to obtain such Future Environmental Attributes without any adjustment to the Contract Price paid by Buyer under this Agreement, but Buyer shall bear all material incremental costs associated with the transfer, qualification, verification, registration and ongoing compliance for such Future Environmental Attributes. Seller shall have no obligation to incur material costs or alter the Facility or its operations in order for Buyer to realize the full value of such Future Environmental Attributes for its benefit unless the Parties have agreed on all necessary terms and conditions relating to such alteration and Buyer has agreed to reimburse Seller for all related costs.
(b) If Buyer elects to receive Future Environmental Attributes pursuant to Section
3.6(a), the Parties agree to negotiate in good faith with respect to the development of further agreements and documentation necessary to effectuate the transfer of such Future Environmental Attributes, including agreement with respect to (i) appropriate transfer, delivery and risk of loss mechanisms, and (ii) the determination of any additional costs to be borne by Buyer, as set forth above; provided, that the Parties acknowledge and agree that such terms are not intended to alter the other material terms of this Agreement.
3.7 Test Energy. If and to the extent the Facility generates Test Energy, no less than fourteen (14) days prior to the first day on which Test Energy is expected to be available from the Facility, Seller may, at its option, notify Buyer of the availability of the Test Energy. Upon such Notice, Buyer may, at its option, purchase from Seller all Test Energy and any associated Green Attributes on an as-available basis. As compensation for any such Test Energy and Green Attributes, Buyer shall pay Seller for each MWh of Test Energy an amount equal to . If Buyer does not, within five (5) Business Days of Seller’s Notice, agree to purchase Test Energy, Seller may sell such Test Energy, and any related products or attributes, to third parties and keep any and all revenues (and bear any and all costs) associated with such sales.
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3.13 Compliance Expenditure Cap. If Seller establishes to Buyer’s reasonable satisfaction that a change in Law occurring after the Effective Date has increased Seller’s cost above the cost that could reasonably have been contemplated as of the Effective Date to take all actions to comply with Seller’s obligations under this Agreement with respect to obtaining, maintaining, conveying or effectuating Buyer’s use of (as applicable), the items listed in Sections 3.13(a), (b), (c), and (d), then the Parties agree that the maximum amount of costs and expenses Seller shall be required to bear in the aggregate during the Delivery Term shall be capped at (“Compliance Expenditure Cap”):
(a) CEC Certification and Verification;
(b) Green Attributes;
(c) WREGIS; and
(d) Capacity Attributes.
Any actions required for Seller to comply with its obligations set forth in the first paragraph above, the cost of which will be included in the Compliance Expenditure Cap, shall be referred to collectively as the “Compliance Actions.”
If Seller reasonably anticipates the need to incur out-of-pocket expenses in excess of the Compliance Expenditure Cap in order to take any Compliance Action Seller shall provide Notice to Buyer of such anticipated out-of-pocket expenses.
Buyer will have sixty (60) days to evaluate such Notice (during which time period Seller is not obligated to take any Compliance Actions described in the Notice) and shall, within such time, either (1) agree to reimburse Seller for all or some portion of the costs that exceed the Compliance Expenditure Cap (such Buyer-agreed upon costs, the “Accepted Compliance Costs”), or (2) waive Seller’s obligation to take such Compliance Actions, or any part thereof for which Buyer has not agreed to reimburse Seller. If Buyer does not respond to a Notice given by Seller under this Section
3.13 within sixty (60) days after Buyer’s receipt of same, Buyer shall be deemed to have waived its rights to require Seller to take the Compliance Actions that are the subject of the Notice, and Seller shall have no further obligation to take, and no liability for any failure to take, the Compliance Actions that are the subject of the Notice for the remainder of the Contract Term.
If Buyer agrees to reimburse Seller for the Accepted Compliance Costs, then Seller shall take such Compliance Actions covered by the Accepted Compliance Costs as agreed upon by the Parties and Buyer shall reimburse Seller for Seller’s actual costs to effect the Compliance Actions, not to exceed the Accepted Compliance Costs, within sixty (60) days from the time that Buyer receives an invoice and reasonable documentation of such costs from Seller.
The term “commercially reasonable efforts” as used in Sections 3.11 and 4.8(h) means efforts consistent with and subject to this Section 3.13.
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ARTICLE 4
OBLIGATIONS AND DELIVERIES
4.1 Delivery.
(a) Energy. Subject to the terms and conditions of this Agreement, Seller shall make available and Buyer shall accept all Delivered Energy on an as-generated, instantaneous basis.
Each Party shall perform all obligations under this Agreement, including all generation, scheduling, and transmission services in compliance with (i) the CAISO Tariff (as applicable), (ii) WECC scheduling practices, and (iii) Prudent Operating Practice. Seller shall effectuate the delivery of Delivered Energy through Dynamic Transfers, and shall be responsible for, at Seller’s sole cost, securing such arrangements with CAISO, the PTO and any other Transmission Provider as are necessary in connection therewith.
(b) Green Attributes. Seller hereby provides and conveys all Green Attributes associated with the Delivered Energy as part of the Product being delivered. Seller represents and warrants that Seller holds the rights to all Green Attributes from the Facility, and Seller agrees to convey and hereby conveys all such Green Attributes to Buyer as included in the delivery of the Product from the Facility. To support Buyer’s efforts to qualify the Green Attributes transferred by Seller as Green-e Certified, upon request of Buyer, Seller shall submit a Green-e® Energy Tracking Attestation Form (“Attestation”) for Product delivered under this Agreement to the Center for Resource Solutions (“CRS”) at https://www.tfaforms.com/4652008 or its successor; provided, to the extent Seller incurs any material third-party costs and/or expenses to prepare or submit such Attestations, Buyer shall reimburse Seller for such costs and/or expenses. Seller may elect to invoice Buyer separately for any such costs and/or expenses (in which case Buyer shall pay such invoices within thirty (30) days after Seller’s delivery of such invoices) or include such costs and expenses in the monthly invoices submitted to Buyer in accordance with Section 8.1. The Attestations shall be submitted in accordance with the requirements of CRS and shall be submitted within thirty (30) days of Buyer’s request or the last day of the month in which the applicable Energy was generated, whichever is later. Notwithstanding any provision of this Section 4.1(b), Seller provides no representation or warranty of any kind whatsoever regarding the eligibility of the Green Attributes to be Green-e Certified.
4.2 Title and Risk of Loss.
(a) Energy. Title to and risk of loss related to the Delivered Energy shall pass and transfer from Seller to Buyer at the Delivery Point.
(b) Green Attributes. Title to and risk of loss related to the Green Attributes shall pass and transfer from Seller to Buyer upon the transfer of such Green Attributes in accordance with WREGIS.
4.3 Scheduling Coordinator Responsibilities.
(a) Seller as Scheduling Coordinator for the Facility. Seller shall be the Scheduling Coordinator or designate a qualified third party to provide Scheduling Coordinator services with the CAISO for the Facility for the delivery of the Product at the Delivery Point. Subject PCE - 76
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(b) Monthly Forecast of Energy and Available Capacity. No less than thirty (30) days before the beginning of Commercial Operation, and thereafter ten (10) Business Days before the beginning of each month during the Delivery Term, Seller shall provide to Buyer and Buyer’s designee (if applicable) a non-binding forecast of the hourly expected Available Capacity and expected Delivered Energy, for each day of the following month in forms substantially similar to the tables attached hereto as Exhibits L-2 and L-3, respectively. (c) Daily Forecast of Available Capacity and Expected Energy. By 5:30 AM Pacific Prevailing Time on the Business Day immediately preceding the date of delivery, Seller shall provide Buyer with a non-binding forecast of its best estimate of (i) Available Capacity and (ii) the Buyer’s Share of the Approved Vendor Forecast, not to exceed the Hourly Delivery Cap, in each case, for each hour of the immediately succeeding day (“Day-Ahead Forecast”). A Day-Ahead Forecast provided in a day prior to any non-Business Day(s) shall include non-binding forecasts for the immediately succeeding day, each succeeding non-Business Day and the next Business Day. (d) Real-Time Available Capacity and Expected Energy. During the Delivery Term, Seller shall notify Buyer of any changes from the Day-Ahead Forecast of one (1) MW or one (1) MWh, as applicable, or more in (i) Available Capacity or (ii) the Buyer’s Share of the Approved Vendor Forecast, not to exceed the Hourly Delivery Cap, in each case, whether due to Forced Facility Outage, Force Majeure Event or other cause, as soon as reasonably possible, but no later than one (1) hour prior to the deadline for submitting Schedules to the CAISO in accordance with the rules for participation in the Real-Time Market. If the Available Capacity or, if applicable, Buyer’s Share of the Approved Vendor Forecast changes by at least one (1) MW or one (1) MWh as of a time that is less than one (1) hour prior to the Real-Time Market deadline, but before such deadline, then Seller must notify Buyer as soon as reasonably possible. Such real-time forecasts shall contain information regarding the beginning date and time of the event resulting in the change in Available Capacity or Approved Vendor Forecast, as applicable, the expected end date and time of such event, and any other information required by the CAISO or reasonably requested by Buyer.
With respect to any Forced Facility Outage, Seller shall use reasonable efforts to notify Buyer of such outage within ten (10) minutes of becoming aware of the Forced Facility Outage. Seller shall inform Buyer as soon as reasonably practicable of any developments that are reasonably likely to affect either the duration of such outage or the availability of the Facility during or after the end of such outage. These forecasts and changes to Available Capacity shall be communicated by email to Buyer, unless Buyer requests an alternative method of communications reasonably acceptable to Seller; provided that Buyer specifies such alternative method no later than sixty (60) days prior to the requested effective date for such alternative method.
4.5 Dispatch Down/Curtailment.
(a) General. Subject to Section 4.5(b), Seller agrees to reduce the Facility’s generation by the amount and for the period set forth in any Curtailment Order; provided that Seller is not required to reduce such amount to the extent it is inconsistent with the limitations of the Facility set out in the Operating Restrictions. Buyer has no obligation to purchase or pay for any Product delivered in violation of any Curtailment Order or for any Product that could not be delivered to the Delivery Point due to a Force Majeure Event.
PCE - 78
78 PCE - 79
79 PCE - 80
80 PCE - 81
81 38
4.8 WREGIS. Seller shall, at its sole expense, but subject to Section 3.13, take all actions and execute all documents or instruments necessary to ensure that all WREGIS Certificates associated with all Renewable Energy Credits corresponding to all Delivered Energy are issued and tracked for purposes of satisfying the requirements of the California Renewables Portfolio Standard for Buyer’s sole benefit. Seller shall transfer the Renewable Energy Credits to Buyer. Seller shall comply with all Laws, including the WREGIS Operating Rules, regarding the certification, issuance, and transfer of such WREGIS Certificates to Buyer, and Buyer shall be given sole title to all such WREGIS Certificates. Seller shall satisfy its obligations pursuant to Section 4.2(b) and Section
4.8(g) by fulfilling its obligations under Sections 4.8(a) through (f) below. (a) Prior to the Commercial Operation Date, Seller shall register the Facility with WREGIS and establish an account with WREGIS (“Seller’s WREGIS Account”), which Seller shall maintain until the end of the Delivery Term. Seller shall transfer the WREGIS Certificates using “Forward Certificate Transfers” (as described in the WREGIS Operating Rules) from Seller’s WREGIS Account to the WREGIS account(s) of Buyer or the accounts of a designee that Buyer identifies by Notice to Seller (“Buyer’s WREGIS Account”) Seller shall be responsible for all expenses associated with registering the Facility with WREGIS, establishing and maintaining Seller’s WREGIS Account, paying WREGIS Certificate issuance and transfer fees, and transferring WREGIS Certificates from Seller’s WREGIS Account to Buyer’s WREGIS Account. (b) Seller shall cause itself or its agent to be designated as the Qualified Reporting Entity for the Facility. Seller shall cause Forward Certificate Transfers to occur on a monthly basis in accordance with the certification procedure established by the WREGIS Operating Rules. Since WREGIS Certificates will only be created for whole MWh amounts of Energy generated, any fractional MWh amounts (i.e., kWh) will be carried forward until sufficient generation is accumulated for creation of a WREGIS Certificate. WREGIS Certificates must be matched with E-Tags associated with the Dynamic Transfers.
(c) Seller shall, at its sole expense, ensure that the WREGIS Certificates for a given calendar month correspond with the Delivered Energy for such calendar month as evidenced by the Facility’s metered data and matching E-Tags associated with the Dynamic Transfers. (d) Due to the approximately ninety (90) day delay in the creation of WREGIS Certificates relative to the timing of invoice payment under Section 8.2, Buyer shall make an invoice payment for a given month in accordance with Section 8.2 before the WREGIS Certificates for such month are formally transferred to Buyer in accordance with the WREGIS Operating Rules and this PCE - 82
82 PCE - 83
83 PCE - 84
84 PCE - 85
85 PCE - 86
86 43
that the inaccuracy persisted during one-half of such period so long as such adjustments are accepted by CAISO and WREGIS; provided, such period may not exceed twelve (12) months.
ARTICLE 8
INVOICING AND PAYMENT; CREDIT
8.1 Invoicing. Seller shall deliver an invoice to Buyer for Product no later than after the end of the prior monthly billing period. Each invoice shall provide Buyer (a) records of metered data, including metering and CAISO transaction data sufficient to document and verify the amount of Delivered Energy for each Settlement Period during the preceding month, including the amount of Delivered Energy as set forth in the first CAISO settlement statement for the prior month that includes meter data from the CAISO Approved Meter, the calculation of Deemed Delivered Energy and Adjusted Energy Production, the applicable Contract Price, the LMP in the Day-Ahead Market and Real-Time Market (if applicable for purposes of any calculations with respect to such invoice) at the Delivery Point for each Settlement Period, all CAISO costs and revenues for which Buyer is responsible (if any), the amount of Replacement RA delivered to Buyer (if any), any revenue and incremental costs associated with third-party sales of Product pursuant to Section 4.5(b), the PTC Amount (if any); (b) a reconciliation of hourly meter data, E-Tag data and associated calculations, including the lesser of each by hour, plus any additional data as may be reasonably required by Buyer for compliance with CPUC reporting obligations, including pursuant to the CPUC’s Energy Division Portfolio Content Category Classification Review Handbook (or successor publication); (c) a statement of the quantity of WREGIS Certificates transferred during the prior month that have been matched with E-Tags associated with the Dynamic Transfers; and (d) access to any records, including invoices or settlement data from the CAISO, necessary to verify the accuracy of any amount. Invoices shall be in a format reasonably agreed upon by the Parties, covering the services provided in the preceding month determined in accordance with the applicable provisions of this Agreement.
8.2 Books and Records. To facilitate payment and verification, each Party shall maintain all books and records necessary for billing and payments, including copies of all invoices under this Agreement, for a period of at least two (2) years or as otherwise required by Law. Either Party, upon fifteen (15) days written Notice to the other Party, shall be granted reasonable access to the accounting books and records within the possession or control of the other Party pertaining to all invoices generated pursuant to this Agreement.
8.3 Payment. Buyer shall make payment to Seller for Product by wire transfer or ACH payment to the bank account provided on each monthly invoice. Buyer shall pay undisputed invoice amounts within after receipt of the invoice. If such due date falls on a weekend or legal holiday, such due date shall be the next Business Day. Payments made after the due date will be considered late and will bear interest on the unpaid balance. If the amount due is not paid on or before the due date or if any other payment that is due and owing from one Party to another is not paid on or before its applicable due date, a late payment charge shall be applied to the unpaid balance and shall be added to the next billing statement. Such late payment charge shall be calculated based on an annual interest rate equal to the prime rate published on the date of the invoice in The Wall Street Journal (or, if The Wall Street Journal is not published on that day, the next succeeding date PCE - 87
87 44
of publication), plus (the “Interest Rate”). If the due date occurs on a day that is not a Business Day, the late payment charge shall begin to accrue on the next succeeding Business Day.
8.4 Payment Adjustments; Billing Errors. Payment adjustments shall be made if Buyer or Seller discovers there have been good faith inaccuracies in invoicing that are not otherwise disputed under Section 8.5, an adjustment to an amount previously invoiced or paid is required due to a correction of data by the CAISO, or there is determined to have been a meter inaccuracy sufficient to require a payment adjustment. If the required adjustment is in favor of Buyer, Buyer’s next monthly payment shall be credited in an amount equal to the adjustment. If the required adjustment is in favor of Seller, Seller shall add the adjustment amount to Buyer’s next monthly invoice. Adjustments in favor of either Buyer or Seller shall bear interest at the Interest Rate, until settled in full, in accordance with Section 8.2, accruing from the date on which the adjusted amount should have been due. Except for adjustments required due to a correction of data by the CAISO, any adjustment described in this Section 8.4 is waived if Notice of the adjustment is not provided within twelve (12) months after the invoice is rendered or subsequently adjusted.
8.5 Billing Disputes. A Party may, in good faith, dispute the correctness of any invoice or any adjustment to an invoice rendered under this Agreement, or adjust any invoice for any arithmetic or computational error, within twelve (12) months of the date the invoice, or adjustment to an invoice, was rendered. In the event an invoice or portion thereof, or any other claim or adjustment arising hereunder, is disputed, payment of the undisputed portion of the invoice shall be required to be made when due. Any invoice dispute or invoice adjustment shall be in writing and shall state the basis for the dispute or adjustment. Payment of the disputed amount shall not be required until the dispute is resolved. Upon resolution of the dispute, any required payment shall be made within five (5) Business Days of such resolution along with interest accrued at the Interest Rate from and including the original due date to but excluding the date paid. Inadvertent overpayments shall be returned upon request or deducted by the Party receiving such overpayment from subsequent payments, with interest accrued at the Interest Rate from and including the date of such overpayment to but excluding the date repaid or deducted by the Party receiving such overpayment. Any dispute with respect to an invoice is waived if the other Party is not notified in accordance with this Section 8.5 within twelve (12) months after the invoice is rendered or subsequently adjusted, except to the extent any misinformation was from a party other than the Party seeking the adjustment and such party corrects its information after the twelve-month period. If an invoice is not rendered within twelve (12) months after the close of the month during which performance occurred, the right to payment for such performance is waived.
8.6 Netting of Payments. The Parties hereby agree that they shall discharge mutual debts and payment obligations due and owing to each other on the same date through netting, in which case all amounts owed by each Party to the other Party for the purchase and sale of Product during the monthly billing period under this Agreement, including any related damages calculated pursuant to Exhibits B and D, interest, and payments or credits shall be netted so that only the excess amount remaining due shall be paid by the Party who owes it.
8.7 Seller’s Development Security. To secure Seller’s obligations under this Agreement, including the obligations of Seller to pay liquidated damages to Buyer as provided in PCE - 88
88 PCE - 89
89 46
(a) Exercise any of its rights and remedies with respect to the Development Security or Performance Security, as applicable, including any such rights and remedies under Law then in effect;
(b) Draw on any outstanding Letter of Credit issued for its benefit and retain any cash held by Buyer as Development Security or Performance Security, as applicable; and (c) Liquidate all Development Security or Performance Security (as applicable) then held by or for the benefit of Buyer free from any claim or right of any nature whatsoever of Seller, including any equity or right of purchase or redemption by Seller.
Buyer shall apply the proceeds of the collateral realized upon the exercise of any such rights or remedies to reduce Seller’s obligations under this Agreement (Seller remains liable for any amounts owing to Buyer after such application), subject to Buyer’s obligation to return any surplus proceeds remaining after these obligations are satisfied in full.
ARTICLE 9
NOTICES
9.1 Addresses for the Delivery of Notices. Any Notice required, permitted, or contemplated hereunder shall be in writing, shall be addressed to the Party to be notified at the address set forth on the Cover Sheet or at such other address or addresses as a Party may designate for itself from time to time by Notice hereunder.
9.2 Acceptable Means of Delivering Notice. Each Notice required, permitted, or contemplated hereunder shall be deemed to have been validly served, given or delivered as follows:
(a) if sent by United States mail with proper first class postage prepaid, three (3) Business Days following the date of the postmark on the envelope in which such Notice was deposited in the United States mail; (b) if sent by a regularly scheduled overnight delivery carrier with delivery fees either prepaid or an arrangement with such carrier made for the payment of such fees, the next Business Day after the same is delivered by the sending Party to such carrier; (c) if sent by electronic communication (including electronic mail, facsimile, or other electronic means), at the time indicated by the time stamp upon delivery once the receiving Party acknowledges receipt of such electronic communication; or (d) if delivered in person, upon receipt by the receiving Party.
Notwithstanding the foregoing, Notices of outages or other scheduling or dispatch information or requests, may be sent by electronic communication and shall be considered delivered upon successful completion of such transmission. In addition, for any Notice sent pursuant to (a), (b) or (d) above, the Party sending such Notice shall send a courtesy copy by email to the email address of the other Party provided on the Cover Sheet.
ARTICLE 10
FORCE MAJEURE
10.1 Definition.
(a) “Force Majeure Event” means any act, event or circumstance that delays or prevents a Party from timely performing all or a portion of its obligations under this Agreement or from complying with all or a portion of the conditions under this Agreement if such act, event or PCE - 90
90 PCE - 91
91 PCE - 92
92 PCE - 93
93 PCE - 94
94 51
a different issuer meeting the criteria set forth in the definition of Letter of Credit, in each case, in the amount required hereunder within ten (10) Business Days after Seller receives Notice of the occurrence of any of the following events:
(A) the issuer of the outstanding Letter of Credit shall fail to maintain a Credit Rating of at least “A-” by S&P or “A3” by Moody’s; (B) the issuer of such Letter of Credit becomes Bankrupt; (C) the issuer of the outstanding Letter of Credit shall fail to comply with or perform its obligations under such Letter of Credit and such failure shall be continuing after the lapse of any applicable grace period permitted under such Letter of Credit;
(D) the issuer of the outstanding Letter of Credit shall fail to honor a properly documented request to draw on such Letter of Credit; (E) the issuer of the outstanding Letter of Credit shall disaffirm, disclaim, repudiate or reject, in whole or in part, or challenge the validity of, such Letter of Credit;
(F) such Letter of Credit fails or ceases to be in full force and effect at any time; or
(G) Seller shall fail to renew or cause the renewal of each outstanding Letter of Credit on a timely basis as provided in the relevant Letter of Credit and as provided in accordance with this Agreement, and in no event less than sixty (60) days prior to the expiration of the outstanding Letter of Credit.
11.2 Remedies; Declaration of Early Termination Date. If an Event of Default with respect to a Defaulting Party shall have occurred and be continuing, the other Party (“Non-Defaulting Party”) shall have the following rights:
(a) to send Notice, designating a day, no earlier than the day such Notice is deemed to be received and no later than twenty (20) days after such Notice is deemed to be received, as an early termination date of this Agreement (“Early Termination Date”) that terminates this Agreement (the “Terminated Transaction”) and ends the Contract Term effective as of the Early Termination Date;
(b) to accelerate all amounts owing between the Parties, and to collect as liquidated damages (i) the Damage Payment (in the case of an Event of Default by Seller occurring before the Commercial Operation Date) or (ii) the Termination Payment calculated in accordance with Section 11.3 below (in the case of an Event of Default by Seller after the Commercial Operation Date or an Event of Default by Buyer throughout the Contract Term); (c) to withhold any payments due to the Defaulting Party under this Agreement; PCE - 95
95 PCE - 96
96 PCE - 97
97 54
ARTICLE 12
LIMITATION OF LIABILITY AND EXCLUSION OF WARRANTIES.
12.1 No Consequential Damages. EXCEPT TO THE EXTENT PART OF AN EXPRESS REMEDY, INDEMNITY OBLIGATION UNDER ARTICLE 17, OR MEASURE OF
DAMAGES HEREIN, NEITHER PARTY SHALL BE LIABLE TO THE OTHER OR ITS
INDEMNIFIED PERSONS FOR ANY SPECIAL, PUNITIVE, EXEMPLARY, INDIRECT, OR
CONSEQUENTIAL DAMAGES, OR LOSSES OR DAMAGES FOR LOST REVENUE OR
LOST PROFITS, WHETHER FORESEEABLE OR NOT, ARISING OUT OF, OR IN CONNECTION WITH THIS AGREEMENT, BY STATUTE, IN TORT OR CONTRACT.
12.2 Waiver and Exclusion of Other Damages. EXCEPT AS EXPRESSLY SET
FORTH HEREIN, THERE IS NO WARRANTY OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE, AND ANY AND ALL IMPLIED WARRANTIES ARE DISCLAIMED. THE PARTIES CONFIRM THAT THE EXPRESS REMEDIES AND
MEASURES OF DAMAGES PROVIDED IN THIS AGREEMENT SATISFY THE ESSENTIAL PURPOSES HEREOF. ALL LIMITATIONS OF LIABILITY CONTAINED IN THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, THOSE PERTAINING TO SELLER’S LIMITATION OF LIABILITY AND THE PARTIES’ WAIVER OF CONSEQUENTIAL
DAMAGES, SHALL APPLY EVEN IF THE REMEDIES FOR BREACH OF WARRANTY PROVIDED IN THIS AGREEMENT ARE DEEMED TO “FAIL OF THEIR ESSENTIAL PURPOSE” OR ARE OTHERWISE HELD TO BE INVALID OR UNENFORCEABLE.
FOR BREACH OF ANY PROVISION FOR WHICH AN EXPRESS AND EXCLUSIVE
REMEDY OR MEASURE OF DAMAGES IS PROVIDED, SUCH EXPRESS REMEDY OR
MEASURE OF DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY, THE OBLIGOR’S LIABILITY SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION, AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED.
IF NO REMEDY OR MEASURE OF DAMAGES IS EXPRESSLY PROVIDED HEREIN, THE OBLIGOR’S LIABILITY SHALL BE LIMITED TO DIRECT DAMAGES ONLY. THE VALUE
OF ANY TAX BENEFITS, DETERMINED ON AN AFTER-TAX BASIS, LOST DUE TO BUYER’S DEFAULT (WHICH SELLER HAS NOT BEEN ABLE TO MITIGATE AFTER USE
OF REASONABLE EFFORTS) AND AMOUNTS DUE IN CONNECTION WITH THE
RECAPTURE OF ANY RENEWABLE ENERGY INCENTIVES, IF ANY, SHALL BE DEEMED TO BE DIRECT DAMAGES.
TO THE EXTENT ANY DAMAGES REQUIRED TO BE PAID HEREUNDER ARE LIQUIDATED, INCLUDING THE DAMAGE PAYMENT UNDER SECTION 11.2 AND THE TERMINATION PAYMENT UNDER SECTION 11.3, AND AS PROVIDED IN EXHIBIT B
AND EXHIBIT D, THE PARTIES ACKNOWLEDGE THAT THE DAMAGES ARE DIFFICULT
OR IMPOSSIBLE TO DETERMINE, THAT OTHERWISE OBTAINING AN ADEQUATE
REMEDY IS INCONVENIENT, AND THAT THE LIQUIDATED DAMAGES CONSTITUTE A
REASONABLE APPROXIMATION OF THE ANTICIPATED HARM OR LOSS, AND (UNLESS EXPRESSLY STATED TO THE CONTRARY) AN EXCLUSIVE REMEDY. IT IS
THE INTENT OF THE PARTIES THAT THE LIMITATIONS HEREIN IMPOSED ON PCE - 98
98 PCE - 99
99 56
(e) The Facility will be located in the State of New Mexico. (f) All Energy and associated Green Attributes to be sold and delivered to Buyer hereunder, qualify as PCC1.
(g) The sole point of interconnection between the Facility and the Transmission System is through the Facility’s interconnection to the SunZia Transmission Line.
13.2 Buyer’s Representations and Warranties. As of the Effective Date, Buyer represents and warrants as follows:
(a) Buyer is a joint powers authority and a validly existing community choice aggregator, duly organized, validly existing and in good standing under the laws of the State of California and the rules, regulations and orders of the California Public Utilities Commission, and is qualified to conduct business in each jurisdiction of the Joint Powers Agreement members. All persons making up the governing body of Buyer are the elected or appointed incumbents in their positions and hold their positions in good standing in accordance with the Joint Powers Agreement and other Law.
(b) Buyer has the power and authority to enter into and perform this Agreement and is not prohibited from entering into this Agreement or discharging and performing all covenants and obligations on its part to be performed under and pursuant to this Agreement, except where such failure does not have a material adverse effect on Buyer’s performance under this Agreement. The execution, delivery and performance of this Agreement by Buyer has been duly authorized by all necessary action on the part of Buyer and does not and will not require the consent of any trustee or holder of any indebtedness or other obligation of Buyer or any other party to any other agreement with Buyer.
(c) The execution and delivery of this Agreement, consummation of the transactions contemplated herein, and fulfillment of and compliance by Buyer with the provisions of this Agreement will not conflict with or constitute a breach of or a default under any Law presently in effect having applicability to Buyer, including but not limited to community choice aggregation, the Joint Powers Act, competitive bidding, public notice, open meetings, election, referendum, or prior appropriation requirements, the documents of formation of Buyer or any outstanding trust indenture, deed of trust, mortgage, loan agreement or other evidence of indebtedness or any other agreement or instrument to which Buyer is a party or by which any of its property is bound. (d) This Agreement has been duly executed and delivered by Buyer. This Agreement is a legal, valid and binding obligation of Buyer enforceable in accordance with its terms, except as limited by Laws of general applicability limiting the enforcement of creditors’ rights or by the exercise of judicial discretion in accordance with general principles of equity. (e) Buyer warrants and covenants that with respect to its contractual obligations under this Agreement, it will not claim immunity on the grounds of sovereignty or similar grounds with respect to itself or its revenues or assets from (i) suit, (ii) jurisdiction of court, (iii) relief by way of injunction, order for specific performance or recovery of property, (iv) attachment of assets, or (v) execution or enforcement of any judgment.
PCE - 100
100
PCE - 101
101
PCE - 102
102
PCE - 103
103
60 16.4 Venue. The Parties agree that any suit, action or other legal proceeding by or against any Party (or its Affiliates or designees) with respect to or arising out of this Agreement shall be brought in the federal courts of the United States or, if such federal courts refuse jurisdiction notwithstanding the Parties’ agreement, then in the courts of the State of California, in either case sitting in County of San Mateo, California.
ARTICLE 17
INDEMNIFICATION
17.1 Indemnification.
(a) Each Party (the “Indemnifying Party”) agrees to indemnify, defend and hold harmless the other Party and its Affiliates, directors, officers, employees and agents (collectively, the “Indemnified Party”) from and against all third-party claims, demands, losses, liabilities, penalties, and expenses (including reasonable attorneys’ fees) for personal injury or death to Persons and damage to the property of any third party to the extent arising out of, resulting from, or caused by the violation of Law or the negligent or willful misconduct of the Indemnifying Party, its Affiliates, its directors, officers, employees, or agents. (b) Nothing in this Section 17.1 shall enlarge or relieve Seller or Buyer of any liability to the other for any breach of this Agreement. Neither Party shall be indemnified for its damages resulting from its sole negligence, intentional acts or willful misconduct. These indemnity provisions shall not be construed to relieve any insurer of its obligation to pay claims consistent with the provisions of a valid insurance policy.
17.2 Claims. Promptly after receipt by a Party of any claim or Notice of the commencement of any action, administrative, or legal proceeding, or investigation as to which the indemnity provided for in this Article 17 may apply, the Indemnified Party shall notify the Indemnifying Party in writing of such fact. The Indemnifying Party shall assume the defense thereof with counsel designated by such Party and reasonably satisfactory to the Indemnified Party; provided, however, that if the defendants in any such action include both the Indemnified Party and the Indemnifying Party and the Indemnified Party shall have reasonably concluded that there may be legal defenses available to it which are different from or additional to, or inconsistent with, those available to the Indemnifying Party, the Indemnified Party shall have the right to select and be represented by separate counsel, at the Indemnifying Party’s expense, unless a liability insurer is willing to pay such costs. If the Indemnifying Party fails to assume the defense of a claim meriting indemnification, the Indemnified Party may at the expense of the Indemnifying Party contest, settle, or pay such claim; provided that settlement or full payment of any such claim may be made only following consent of the Indemnifying Party or, absent such consent, written opinion of the Indemnified Party’s counsel that such claim is meritorious or warrants settlement. Except as otherwise provided in this Article 17, in the event that a Party is obligated to indemnify and hold the other Party and its successors and assigns harmless under this Article 17, the amount owing to the Indemnified Party will be the amount of the Indemnified Party’s damages net of any insurance proceeds received by the Indemnified Party following a reasonable effort by the Indemnified Party to obtain such insurance proceeds.
PCE - 104
104
PCE - 105
105
PCE - 106
106
63 19.5 Disclosure to Credit Rating Agency. Notwithstanding anything to the contrary in this Article 19, Confidential Information may be disclosed by either Party to any nationally recognized credit rating agency (e.g., Moody’s Investors Service, Standard & Poor’s, or Fitch Ratings) in connection with the issuance of a Credit Rating for that Party or its Affiliates, provided that any such credit rating agency agrees in writing to maintain the confidentiality of such Confidential Information.
19.6 Public Statements. Neither Party shall issue (or cause its Affiliates to issue) a press release regarding the transactions contemplated by this Agreement unless both Parties have agreed upon the contents of any such press release.
ARTICLE 20
MISCELLANEOUS
20.1 Entire Agreement; Integration; Exhibits. This Agreement, together with the Cover Sheet and Exhibits attached hereto constitutes the entire agreement and understanding between Seller and Buyer with respect to the subject matter hereof and supersedes all prior agreements relating to the subject matter hereof, which are of no further force or effect. The Exhibits attached hereto are integral parts hereof and are made a part of this Agreement by reference. The headings used herein are for convenience and reference purposes only. In the event of a conflict between the provisions of this Agreement and those of the Cover Sheet or any Exhibit, the provisions of first the Cover Sheet, and then this Agreement shall prevail, and such Exhibit shall be corrected accordingly.
This Agreement shall be considered for all purposes as prepared through the joint efforts of the Parties and shall not be construed against one Party or the other as a result of the preparation, substitution, submission or other event of negotiation, drafting or execution hereof.
20.2 Amendments. This Agreement may only be amended, modified or supplemented by an instrument in writing executed by duly authorized representatives of Seller and Buyer; provided, that, for the avoidance of doubt, this Agreement may not be amended by electronic mail communications.
20.3 No Waiver. Waiver by a Party of any default by the other Party shall not be construed as a waiver of any other default.
20.4 No Agency, Partnership, Joint Venture or Lease. Seller and the agents and employees of Seller shall, in the performance of this Agreement, act in an independent capacity and not as officers or employees or agents of Buyer. Under this Agreement, Seller and Buyer intend to act as energy seller and energy purchaser, respectively, and do not intend to be treated as, and shall not act as, partners in, co-venturers in or lessor/lessee with respect to the Facility or any business related to the Facility. This Agreement shall not impart any rights enforceable by any third party (other than a permitted successor or assignee bound to this Agreement).
20.5 Severability. In the event that any provision of this Agreement is unenforceable or held to be unenforceable, the Parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby. The Parties shall, however, use their best endeavors to agree on the replacement of the void, illegal or unenforceable provision(s) with legally acceptable clauses which correspond as closely as possible to the sense and purpose of the affected provision and this PCE - 107
107
64 Agreement as a whole.
20.6 Mobile-Sierra. Notwithstanding any other provision of this Agreement, neither Party shall seek, nor shall they support any third party seeking, to prospectively or retroactively revise the rates, terms or conditions of service of this Agreement through application or complaint to FERC pursuant to the provisions of Section 205, 206 or 306 of the Federal Power Act, or any other provisions of the Federal Power Act, absent prior written agreement of the Parties. Further, absent the prior written agreement in writing by both Parties, the standard of review for changes to the rates, terms or conditions of service of this Agreement proposed by a Party shall be the “public interest” standard of review set forth in United Gas Pipe Line Co. v. Mobile Gas Service Corp., 350 U.S. 332 (1956) and Federal Power Commission v. Sierra Pacific Power Co., 350 U.S. 348 (1956).
Changes proposed by a non-Party or the FERC acting sua sponte shall be subject to the most stringent standard permissible under applicable Law.
20.7 Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one and the same instrument and each of which shall be deemed an original.
20.8 Facsimile or Electronic Delivery. This Agreement may be duly executed and delivered by a Party by execution and facsimile or electronic format (including portable document format (.pdf)) delivery of the signature page of a counterpart to the other Party, and, if delivery is made by facsimile or other electronic format and the other Party so requests, the executing Party shall promptly deliver, via overnight delivery, a complete original counterpart that it has executed to the other Party, but this Agreement shall be binding on and enforceable against the executing Party whether or not it delivers such original counterpart.
20.9 Binding Effect. This Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns.
20.10 No Recourse to Members of Buyer. Buyer is organized as a Joint Powers Authority in accordance with the Joint Exercise of Powers Act of the State of California (Government Code Section 6500, et seq.) pursuant to its Joint Powers Agreement and is a public entity separate from its constituent members. Buyer shall solely be responsible for all debts, obligations and liabilities accruing and arising out of this Agreement. Seller shall have no rights and shall not make any claims, take any actions or assert any remedies against any of Buyer’s constituent members, or the employees, directors, officers, consultants or advisors of Buyer or its constituent members, in connection with this Agreement.
20.11 Change in Electric Market Design.
(a) If a change in the CAISO Tariff renders this Agreement or any provisions hereof incapable of being performed or administered, then any Party may request that Buyer and Seller enter into negotiations to make the minimum changes to this Agreement necessary to make this Agreement capable of being performed and administered, while attempting to preserve to the maximum extent possible the benefits, burdens, and obligations set forth in this Agreement as of the Effective Date. If a change to any Law occurs after the Effective Date, including any rule or requirement of WREGIS, that impacts the number or quality of Resource Adequacy Benefits or PCE - 108
108
PCE - 109
109
PCE - 110
110
PCE - 111
111
PCE - 112
112
PCE - 113
113
PCE - 114
114
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115
Exhibit C - 1
EXHIBIT C
EMERGENCY CONTACT INFORMATION
BUYER:
Peninsula Clean Energy Authority
2075 Woodside Road
Redwood City, CA 94061
Attn: Director of Power Resources
Phone No.: 650-260-0005
Email: [email protected]
SELLER:
Attn:
Phone:
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Exhibit E - 1
EXHIBIT E
PROGRESS REPORTING FORM
Within fifteen (15) days after the close of (i) each calendar quarter from the first calendar quarter following the Effective Date until the Construction Start Date, and (ii) each calendar month from the first calendar month following the Construction Start Date until the Commercial Operation Date, Seller shall provide to Buyer a written Progress Report in the form specified below.
Each Progress Report must include the following items:
1. Executive summary.
2. Facility description.
3. Site plan of the Facility.
4. Description of any planned changes to the Facility or the Site.
5. Gantt chart schedule showing progress on achieving each of the Milestones.
6. Summary of activities during the previous calendar quarter or month, as applicable, including any OSHA labor hour reports.
7. Forecast of activities scheduled for the current calendar quarter.
8. Written description about the progress relative to Seller’s Milestones, including whether Seller has met or is on target to meet the Milestones.
9. List of issues that could potentially affect Seller’s Milestones.
10. A status report of start-up activities including a forecast of activities ongoing and after start-up, a report on Facility performance including performance projections for the next twelve (12) months.
11. Progress and schedule of all agreements, contracts, permits, approvals, technical studies, financing agreements and major equipment purchase orders showing the start dates, completion dates, and completion percentages.
12. Pictures, in sufficient quantity and of appropriate detail, in order to document construction and startup progress of the Facility, the interconnection into the Transmission System and all other interconnection utility services.
13. Any other documentation reasonably requested by Buyer.
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Exhibit G - 1
EXHIBIT G
FORM OF INSTALLED CAPACITY CERTIFICATE
This certification (“Certification”) of Installed Capacity is delivered by [Licensed Professional Engineer] (“Engineer”) to PENINSULA CLEAN ENERGY AUTHORITY (“Buyer”) in accordance with the terms of that certain Power Purchase and Sale Agreement dated __________ (“Agreement”) by and between SUNZIA WIND POWERCO LLC (“Seller”) and Buyer. All capitalized terms used in this Certification but not otherwise defined herein shall have the respective meanings assigned to such terms in this Agreement.
As of the date set forth below, [___] wind turbines with a collective nameplate capacity of [__] (“Installed Capacity”) have been installed ([__] MW at SunZia Wind North and [__] MW at SunZia Wind South), and testing and commissioning of each such wind turbines has been completed in accordance with the turbine supply agreement and each such wind turbine has delivered electricity to the point of interconnection specified in the Interconnection Agreement.
EXECUTED by [LICENSED PROFESSIONAL ENGINEER]
this ________ day of _____________, 20__.
[LICENSED PROFESSIONAL ENGINEER]
By:
Its:
Date:
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Exhibit J - 1
EXHIBIT J
INSURANCE
Liability Insurance
To the fullest extent allowable by law, Seller shall purchase and maintain such insurance as will protect it from the claims set forth below which may arise out of or result from Seller’s operations under this Agreement whether such operations be by itself or by anyone directly or indirectly employed by them, or by anyone for whose acts any of them may be liable. Limits shall be all the Insurance Coverage and/or limits carried by or available to the Seller, the minimum limits as required herein.
General Conditions
Seller shall maintain completed operations liability insurance for the entire Contract Term.
Seller shall maintain policies of insurance in full force and effect, at all times during the performance of this Agreement.
All insurance companies shall have a Best’s rating of A-VII or better.
In addition, Seller shall provide Buyer with 45 days’ notice in case of cancellation or non-renewal, except 10 days for non-payment of premium.
Certificates of Insurance Acord Form 25 and all relevant Endorsements shall be filed with Buyer within (5) working days of execution of the contract and/or prior to commencement of any work performed.
If requested by Buyer in writing, Seller shall provide a copy of any or all relevant policies.
Acceptance of the certificates or endorsements by Buyer shall not constitute a waiver of Seller’s obligations hereunder.
If Seller fails to secure and/or pay the premiums for any of the policies of insurance required herein, or fails to maintain such insurance, Buyer may, in addition to any other rights it may have under this Agreement or at law or in equity, terminate this Agreement or secure such policies or policies of insurance for the account of Seller and charge Seller for the premiums paid therefore, or withhold the amount thereof from sums otherwise due from Buyer to Seller. Neither the Buyer’s rights to secure such policy or policies nor the securing thereof by Buyer shall constitute an undertaking by Buyer on behalf of or for the benefit of Seller or others to determine or warrant that such policies are in effect.
Seller shall be fully and financially responsible for all deductibles or self-insured retentions.
Coverage Forms & Limits
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Exhibit J - 3
incidental to the fulfillment of all contract obligations hereunder. Such insurance shall provide coverage for bodily injury, property damage, clean- up costs and remediation expenses (including costs for investigation, sampling, characterization, and monitoring), legal costs, defense costs, natural resource damage, and transportation of pollutants on and off the project site. Coverage shall also extend to pollution conditions arising out of the Seller’s operations for sudden and accidental release arising from Seller’s operations including operations of any of its Seller’s or consultants.
Such insurance shall be in an amount of not less than per claim or occurrence and annual aggregate. This limit may be met with in combination with the Umbrella or Excess Liability Insurance.
Additional Insured / Primary-Noncontributory / Waiver of Subrogation Requirements To the fullest extent of coverage allowed under applicable law, Buyer shall be named as additional insured on a primary and non-contributory basis for all required lines of coverage except Statutory Workers Compensation, arising out of all operations performed by or for the Seller under this Agreement. Buyer shall accept General Liability Additional Insured forms CG 20 10 11/85, CG 20 10 10/01 & CG 20 37 10/01 or their equivalent.
Seller’s insurance shall be Primary as respects to Buyer and Seller, and any other insurance maintained by Buyer and Seller shall be excess and not contributing insurance with Seller’s insurance.
In the event that any policy provided in compliance with this Agreement states that the coverage provided to an additional insured shall be no broader than that required by contract, or words of similar meaning, the Parties agree that nothing in this Agreement is intended to restrict or limit the breadth of coverage or limits available.
The additional insured status shall remain in full force and effect for the Contract Term.
Buyer reserves the right, in its sole and subjective discretion, to reject any Additional Insured forms that are deemed not equivalent to what is required herein.
Waiver of Subrogation – Seller shall provide a Waiver of Subrogation in favor of the Buyer for all lines of coverage.
Additional Requirements
Seller is solely responsible for loss or damage to its personal property.
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Exhibit L2 - 3
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EXHIBIT M
OPERATING RESTRICTIONS
Operating Restrictions of the Facility for Market Curtailment Periods are as follows:
Interconnection Capacity (Maximum Injection Amount): 3,000 MW Minimum operating capacity: 0.0 MW
Maximum number of start-ups per calendar day (if any such operational limitations exist): N/A Ramp Rate: To be provided by Seller upon Notice to Buyer prior to Commercial Operation; provided, in no event shall it take more than ten (10) minutes for the Facility to ramp up from zero (0) MW to Pmax or ramp down from Pmax to zero (0) MW.
Minimum Down Time: N/A
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PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: June 15, 2023
BOARD MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Jan Pepper, Chief Executive Officer
Roy Xu, Director of Power Resources
Mehdi Shahriari, Manager of Planning and Analytics
SUBJECT: Adopt Staff’s Recommendation on Delivery of 100% Renewable Energy Annually by 2025 and on a 99% Time-Coincident Basis by 2027 RECOMMENDATION:
Based on the updated results of the 24/7 analysis presented by staff, adopt staff’s recommendation to deliver 100% renewable energy annually by 2025 and on a 99% time-coincident basis by 2027.
BACKGROUND:
In 2017 Peninsula Clean Energy (“PCE”) set an ambitious goal to deliver 100% time-coincident renewable energy to its customers by 2025, which means delivering renewable energy that matches customers’ demand each and every hour of the day. In the ensuing years, staff developed and leveraged a new 24/7 clean energy procurement modeling tool that has been helping Peninsula Clean Energy understand the best path to achieving this goal.
In December 2021, Peninsula Clean Energy published its White Paper Part I on this topic, explaining PCE’s vision for its 24/7 renewable energy goal. Building on the work in the first white paper, staff presented the results of extensive portfolio modeling to the Board of Directors at the Board Retreat in September 2022. In that presentation, staff explained how Peninsula Clean Energy can achieve time-coincident renewable energy targets and how different time-coincident targets would impact Peninsula Clean Energy’s cost of energy. Further, staff presented how time-coincident renewable energy procurement could provide benefits to society by reducing greenhouse gas emissions and improving grid performance.
In November 2022, the Board of Directors adopted staff’s recommendation on delivering 100% renewable energy annually on a 99% time-coincident basis by 2025. In January 2023, Peninsula Clean Energy published its White Paper Part II that describes how PCE will achieve its 24/7 goal. At that time, PCE also published the Modeling Around-The-Clock PCE - 138
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Hourly Energy (MATCH) modeling tool, a free, open-source modeling tool that can be used by other communities to find the optimal portfolio to meet similar 24/7 goals for their community.
Staff has continued to update its modeling and analysis with the most recent power resource availability and market conditions. Delays in resource development due to global supply chain and financial issues, labor shortages, and interconnection delays have resulted in fewer resources available to Peninsula Clean Energy by 2025 than originally planned. Given these new conditions, staff has re-evaluated the optimal approach to delivering 24/7 renewable energy to our customers.
SUMMARY:
Peninsula Clean Energy Staff leveraged the MATCH modeling tool to evaluate the optimal implementation of Peninsula Clean Energy’s 24/7 goal given updated market conditions and resource availability. Due to delays in resource development, only a limited pool of resources is available to begin delivering time-coincident renewable energy by 2025 and these resources are not a good fit for Peninsula Clean Energy’s portfolio because of their generation profiles. Contracting with such resources will increase over-procurement, and lead to higher long-term cost and risk to Peninsula Clean Energy. In contrast, there is a more diverse set of potential resources available for time-coincident renewable energy delivery in 2027 and some are a much better fit for Peninsula Clean Energy’s portfolio.
Contracting with these resources would decrease over-procurement and reduce the long-term cost and risk. As such, staff recommends updating PCE’s 99% time-coincident goal from 2025 to 2027 in order to incorporate the more optimal and cost-effective resources in Peninsula Clean Energy’s portfolio. Staff further recommends keeping the goal of delivering 100% renewable energy annually by 2025. Staff will continue to monitor and evaluate the feasibility of achieving the 24/7 goal by 2027.
DISCUSSION:
Staff has updated its modeling of the 24/7 renewable goal using the most recent market information and resources availability. Due to global supply chain and financial issues, as well as labor shortages and interconnection delays, there are significant delays in the development of renewable resources. There are limited resources available in 2025, with a wider availability of resources of different technologies expected to be available in 2027 and beyond. The resources available in 2027 tend to be a better fit for Peninsula Clean Energy’s portfolio. For example, several important wind resources are expected to be online in 2027. Wind resources are an excellent fit for Peninsula Clean Energy, as they complement solar generation by providing overnight and winter generation.
In addition, staff has been actively pursuing short-term contracts with existing renewable resources in an effort to meet the 24/7 goal by 2025, but has had limited success due to unavailability of such products in the current high-priced market. As a result, staff expects that Peninsula Clean Energy will need to rely more on long-term contracts with new resources to meet its 24/7 time-coincident goal. However, if Peninsula Clean Energy chooses to enter long-term contracts with sub-optimal resources for delivery in 2025 to try PCE - 139
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to meet the 99% time-coincident goal by 2025, then Peninsula Clean Energy won’t have room in its portfolio for more optimal resources becoming available in 2027.
Staff has compared the portfolio structures between meeting the 99% goal in 2025 versus meeting it in 2027. Staff notes that the significant amount of capacity required from less-desirable resources to meet the 99% time-coincident goal by 2025 translates directly into high volumes of over-procurement, which Peninsula Clean Energy would try to sell, but the ability to sell at fair prices is not guaranteed. The high amount of capacity and the over-procurement could lead to increased costs and increased portfolio risk that would extend into the next ten to fifteen years. On the other hand, by targeting 24/7 in 2027, staff would have more flexibility to contract with resources having favorable profiles and attributes that are a better fit for Peninsula Clean Energy’s portfolio. In the long run, shifting the target date by two years will decrease over-procurement and reduce the total cost and risk to PCE.
The staff’s analysis indicates that the recommended strategy to achieve 24/7 by 2027 is the optimal approach to balance the costs and benefits to Peninsula Clean Energy’s customers. At the same time, PCE will maintain the goal of delivering 100% renewable energy annually by 2025. Staff notes that it will continue to monitor and evaluate the opportunity of achieving the 99% time-coincident goal by 2027, and promptly communicate any changes to the Board of Directors.
FISCAL IMPACT:
Updating the implementation of a 99% time-coincident renewable energy procurement target to 2027 will reduce the expected cost and risk of Peninsula Clean Energy’s future portfolio, relative to a 2025 target. There is no immediate impact to the current 2023-2024 FY budget.
STRATEGIC PLAN:
The updated 24/7 Renewable Strategy is in support of the following objectives in Peninsula Clean Energy’s strategic plan:
• Organizational Priority 1: “By 2025, deliver 100% renewable energy each and every hour of day.” If the Board adopts the current recommendation, staff suggests updating this Priority to “By 2025, deliver 100% renewable energy annually, and by 2027, deliver renewable energy each and every hour of the day.” • Power Resources Goal 1: Secure sufficient, low-cost, clean sources of electricity that achieve Peninsula Clean Energy's priorities while ensuring reliability and meeting regulatory mandates.
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RESOLUTION NO. _____________
PENINSULA CLEAN ENERGY AUTHORITY, COUNTY OF SAN MATEO, STATE OF
CALIFORNIA
* * * * * *
RESOLUTION ADOPTING STAFF’S RECOMMENDTION ON DELIVERY OF 100% RENEWABLE ENERGY ANNUALLY BY 2025 AND ON A 99% TIME-COINCIDENT BASIS BY 2027
______________________________________________________________ RESOLVED, by the Peninsula Clean Energy Authority of the County of San Mateo, State of California, that
WHEREAS, the Peninsula Clean Energy Authority (“Peninsula Clean Energy”) was formed on February 29, 2016; and
WHEREAS, in 2017, Peninsula Clean Energy set an ambitious goal to deliver 100% time-coincident renewable energy to its customers by 2025; and WHEREAS, in 2022 the Peninsula Clean Energy Board of Directors adopted a resolution to achieve 100% renewable energy annually and meet a 99% time-coincident target by 2025; and
WHEREAS, staff modeling and analysis of current available resources and current market conditions indicate that meeting a 99% time-coincident renewable target by 2025 is cost prohibitive and would lead to non-optimal long-term portfolio structure; and PCE - 141
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WHEREAS, staff modeling and analysis indicate that meeting a 99% time-coincident renewable target by 2027 is potentially achievable in a way that reduces costs and optimizes portfolio structure,
NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Board adopts the staff’s Recommendation of delivery of 100% renewable energy annually by 2025 and on a 99% time-coincident basis by 2027.
* * * * * *
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PENINSULA CLEAN ENERGY
JPA Board Correspondence
DATE: June 15, 2023
BOARD MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: Majority Vote
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: David Silberman, General Counsel
Jennifer Stalzer, Assistant General Counsel
SUBJECT: Approval of Appointment of Shawn E. Marshall as Chief Executive Officer (CEO) and an Agreement for her Service as CEO for the Term of July 1, 2023 to June 30, 2026 in an Amount Not-to-Exceed $400,000 annually
RECOMMENDATION
The Board’s Ad Hoc Committee (consisting of Dave Pine, Marty Medina, Donna Colson, and Rick DeGolia) recommends that the Board approve an Agreement with Shawn E.
Marshall in the position of Chief Executive Officer for Peninsula Clean Energy. The Agreement commences on July 1, 2023 and concludes on June 30, 2026 with the possibility of an extension; and (2) provides for an annual base salary of $375,000 effective July 1, 2023 with the possibility of an annual bonus of up to $25,000, subject to the PCEA Board’s sole discretion.
BACKGROUND/CURRENT STATUS
Upon the retirement of Peninsula Clean Energy Authority’s founding Chief Executive Officer, Janis C. Pepper, on June 30, 2023, the Board’s Ad Hoc Committee recommends that Shawn E. Marshall be appointed as the Chief Executive Officer of the company effective July 1, 2023. The Board’s Ad Hoc Committee led and managed a comprehensive recruitment for the position and received a number of qualified candidates. Ad Hoc Committee members reviewed applicants’ resumes and held interviews in aid of finding the most qualified candidate for the position. Based on a thorough review of qualifications, the Ad Hoc Committee determined that Ms. Marshall is the most qualified candidate given her background, experience, knowledge, and understanding of the CCA landscape. The committee recommends her appointment for an initial three (3) year term.
The Ad Hoc Committee, with the assistance of counsel, conducted a salary analysis in comparison with other nearby and comparable Community Choice Aggregators for the position and based on this information gathering, drafted the attached Agreement inclusive PCE - 143
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of comprehensive compensation (including salary, retirement contributions, benefits, and time off). The Agreement also provides for an annual Performance Review to occur on or around June 30th of each year. Subsequent to the completion of the annual performance review, the Board will have the option of awarding up to a $25,000 bonus to Ms. Marshall.
In conclusion and based on the above-described reviews and analysis, the Ad Hoc Committee recommends approval of the attached Employment Agreement and welcomes Shawn E. Marshall as Chief Executive Officer of PCEA.
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RESOLUTION NO. _____________
PENINSULA CLEAN ENERGY AUTHORITY, COUNTY OF SAN MATEO, STATE OF
CALIFORNIA
* * * * * *
RESOLUTION APPROVING APPOINTMENT OF SHAWN E. MARSHALL AS CHIEF
EXECUTIVE OFFICER AND AN AGREEMENT FOR HER SERVICE AS CEO FOR THE TERM OF JULY 1, 2023 TO JUNE 30, 2026 IN AN AMOUNT NOT TO EXCEED $400,000 ANNUALLY
______________________________________________________________ RESOLVED, by the Peninsula Clean Energy Authority (PCEA) of the County of San Mateo, State of California, that
WHEREAS, PCEA was formed on February 29, 2016; and
WHEREAS, Janis Pepper has been the Chief Executive Officer of PCEA since May 27, 2016; and
WHEREAS, Janis Pepper is retiring from the position effective June 30, 2023; and WHEREAS, the PCEA Board of Directors initiated a recruitment for the position and as such, an Ad Hoc Committee of PCEA’s Board of Directors consisting of Dave Pine, Marty Medina, Donna Colson, and Rick DeGolia assisted with the Chief Executive Officer recruitment and recommendation process; and
WHEREAS, the Board’s Ad Hoc Committee led and managed a comprehensive recruitment for the position and received a number of qualified applicants; and PCE - 145
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WHEREAS, Shawn E. Marshall, who has served ably as Chief Operating Officer of PCEA, was one of those applicants; and
WHEREAS, at the conclusion of the recruitment process, the Ad Hoc Committee now recommends that the PCEA Board select Shawn E. Marshall as PCEA’s Chief Executive Officer and sign an agreement to that effect with Ms. Marshall; WHEREAS, the term of the Agreement shall be from July 1, 2023 to June 30, 2026 in an amount not to exceed $400,000 annually;
WHEREAS, this amount is inclusive of $25,000 per contract year for an optional annual bonus, the dispensation of which and the amount of which shall be determined on or about June 30 of each contract year and is dispersed at the sole discretion of the Board; and
WHEREAS, this Board has been presented with a form of such agreement and has examined and approved as to both form and content and desires to enter into the same.
NOW THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Chair of Peninsula Clean Energy be, and hereby is authorized and directed to execute said Agreement Between the Peninsula Clean Energy Authority and Shawn E. Marshall for Service as Chief Executive Officer for and on behalf of Peninsula Clean Energy, and the Clerk of the Board may attest the Chair’s signature thereto. * * * * * *
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AGREEMENT BETWEEN THE PENINSULA CLEAN
ENERGY AUTHORITY AND SHAWN E. MARSHALL FOR
SERVICE AS CHIEF EXECUTIVE OFFICER
THIS AGREEMENT is entered into this 1st day of July, 2023, between the PENINSULA CLEAN ENERGY AUTHORITY (“PCEA”), a joint powers agency established by the County of San Mateo and Cities within the County, and SHAWN E. MARSHALL (“CEO”).
W I T N E S S E T H
WHEREAS, SHAWN E. MARSHALL has served ably as Chief Operating Officer of PCEA;
WHEREAS, PCEA conducted a recruitment and selected SHAWN E. MARSHALL as the CEO of PCEA;
NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions as hereinafter set forth, the parties agree as follows:
1. SHAWN E. MARSHALL is hereby employed as CEO of PCEA pursuant to this Agreement. This Agreement, and CEO’s term of employment, commences on July 1, 2023, and ends on June 30, 2026. The specification of a term indicates only the maximum length of this Agreement and is not a guarantee of employment for any period of time. CEO is an at-will employee and shall serve at the pleasure of the PCEA Board of Directors (“PCEA Board”).
PCEA may terminate this Agreement, without cause, at any time for any reason effective immediately upon written notice. CEO may terminate this agreement, without cause, at any time for any reason upon 60 days written notice.
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2. CEO shall be responsible for the day-to-day administration of PCEA under the direction of PCEA Board. CEO shall seek advice and assistance from the Executive Committee and any other committee constituted by PCEA for that purpose. Duties to be performed by CEO are set forth in the job description attached as Exhibit A to this Agreement. CEO shall devote her full-time efforts to the performance of the duties of CEO of the PCEA.
3. Beginning July 1, 2023, CEO shall receive an annual salary of THREE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($375,000.00) in 24 bimonthly installments of $15,625.00. This salary will remain in effect until at least June 30, 2026.
4. Any further salary increase will be made in conjunction with CEO’s annual performance reviews, which will generally take place on or about June 30th of each succeeding year. The determination of whether any salary adjustments are merited and the amount of the adjustments are within the sole discretion of the PCEA Board, whose decision shall be final.
Further, CEO shall be eligible for an annual bonus of up to TWENTY-FIVE THOUSAND DOLLARS ($25,000) to the extent that the Executive Committee of the PCEA Board (or an ad hoc committee appointed by the Executive Committee) determines that the CEO has met or exceeded the goals and objectives established by Executive Committee (or an ad hoc committee appointed by the Executive Committee). The determination of whether any bonus is merited and the amount are within the sole discretion of the PCEA Executive Committee (or an ad hoc committee appointed by the Executive Committee), whose decision shall be final.
5. PCEA shall provide CEO with a Defined Contribution Plan or Plans. The Plan(s) will provide for a matching contribution from PCEA in the same manner and amount as that currently provided to other PCEA staff. The matching contribution from PCEA will vest in PCE - 148
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accordance with the vesting terms established for other PCEA employees set forth in the Plan(s) but in no event will the vesting period exceed four years.
6. CEO shall accrue paid leave and such paid leave shall be accrued and capped in a manner consistent with that of other PCEA management employees.
7. CEO shall be provided with paid holidays in conformance with the paid holidays established for other PCEA employees.
8. CEO is eligible for health, vision, dental and other benefits in the same manner and cost as other PCEA employees.
9. During the employment term PCEA shall reimburse CEO for budgeted and reasonable out-of-pocket expenses incurred in connection with PCEA’s business, including reasonable expenses for mileage, travel, conferences, and membership dues in professional organizations that are appropriate to PCEA’s goals, as approved by the Chair of the Board.
10. PCEA shall pay CEO for all services through the effective date of termination.
CEO shall have no right to any additional compensation or payment, except as provided below and except for any accrued and vested benefits.
a. If PCEA terminates this Agreement (thereby terminating CEO’s employment) without cause, PCEA shall pay CEO a lump sum severance benefit equal to four (4) months of her then applicable base salary thereafter. b. If PCEA terminates this Agreement (thereby terminating CEO’s employment) with cause, CEO shall not be entitled to any severance. As used in this Agreement, cause shall mean termination due to:
(1) A judgment or adverse determination by any court, the State Attorney General, a grand jury, or the California Fair Political Practices PCE - 149
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Commission involving any misconduct in the course and scope of duties, including but not limited to: intentional tort or violation of any statute or law constituting misconduct in office, misuse of public funds or conflict of interest; (2) Conviction of a felony;
(3) Conviction of a misdemeanor arising out of CEO’s duties under this Agreement and involving a willful or intentional violation of law or any crime of moral turpitude;
(4) Willful abandonment of duties;
(5) A pattern of repeated, willful and intentional failures to carry out materially significant and legally constituted policy decisions of the Board made by the Board as a body or persistent and willful violation of properly established rules and procedures; and
(6) Any other action or inaction by CEO that materially and substantially harms PCEA’s interests, materially and substantially impedes or disrupts the performance of PCEA, or that is detrimental to employee safety or public safety.
c. If CEO terminates this Agreement (thereby terminating CEO’s employment), CEO shall not be entitled to any severance. d. Any other term of this Agreement notwithstanding, the maximum severance that CEO may receive under this Agreement shall not exceed the limitations provided in Government Code Sections 53260 – 53264, or other applicable law. Further, in the event CEO is convicted of a crime involving an abuse of office or position, CEO PCE - 150
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shall reimburse the PCEA for any paid leave or cash settlement (including severance), as provided by Government Code Sections 53243 – 53243.4.
11. This Agreement represents the entire agreement between the parties with respect to the subject matter addressed herein, and any previous agreements between the parties, whether written or oral, with respect to the subject matter of this agreement are of no further force and effect. All subsequent modifications of this agreement shall not be effective unless set forth in writing and executed by CEO and by Resolution of PCEA Board.
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year written below.
Dated____________________ PENINSULA CLEAN ENERGY AUTHORITY By______________________________________
Rick DeGolia
Chair, PCEA Board of Directors
ATTEST:
_________________________
General Counsel
Dated_____________________ By____________________________________ Shawn E. Marshall
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PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: June 2, 2023
COMMITTEE MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Jan Pepper, Chief Executive Officer
Jeremy Waen, Director of Regulatory Policy
Marc Hershman, Director of Government Affairs
SUBJECT: Regionalization Study Session
BACKGROUND AND DISCUSSION:
The California Legislature is considering legislation that would enable the State’s grid operator, the California Independent System Operator (CAISO), to expand service to other states within the Western Electricity Coordinating Council (WECC). This is a complex issue that has previously been before the legislature, with multiple stakeholders and several policy and operational implications to consider.
Staff will present an overview of the issue and its current status.
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PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: June 9, 2023
BOARD MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Gwen Rose, Director of Marketing &
Leslie Brown, Director of Account Services
SUBJECT: Update on Marketing, Outreach Activities, and Account Services
BACKGROUND
The Marketing, Community Relations, and Account Services Teams are responsible for enhancing Peninsula Clean Energy’s brand reputation, educating and engaging customers, driving participation in programs, and ensuring customer satisfaction and retention. Tactics include community outreach, content creation and storytelling through owned (e.g. online, social media), earned (e.g. public relations), and paid media (advertising), school engagement programs, and customer care.
DISCUSSION
The following is an update of activities that are currently underway. Please refer to the “Strategic Plan” section below for further information/explanation as to how these activities support Peninsula Clean Energy’s strategic plan objectives.
Zero Percent Loan Program and Appliance Rebates
These programs are being promoted in our Energy Programs Bulletin, which is emailed every other month to about 200,000 residential customers, and in paid search. In the last 30 days, 676 users visited the Zero Percent Loan webpage, 1,298 visited the heat pump water heater program page, and 2,517 visited the heat pump heating and cooling program page.
Electrification Messaging and Campaign Support of Decarbonization We are encouraging electrification in email communications and online advertising. In the last 30 days, 2,021 users have visited our all-electric web page. Our search ads for this campaign are currently achieving a click-through rate of 10% at a cost of $1.65 per click.
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The campaign supports our organizational priority to contribute to our community reaching a goal of 100% greenhouse gas-free for buildings and transportation by 2035.
Used Electric Vehicle (EV) Campaign
In the past 30 days, 2,818 users visited the main EV page on our web site. A search advertising campaign addressing barriers and benefits of electric vehicles is currently achieving a click-through rate of 4.93% at a cost of $3.11 per click.
Outreach Grants
Some recent and upcoming program highlights include:
• 350.org Bay Area organized building electrification workshops in San Mateo and Pacifica with over 65 attendees at each. Acterra Home Electrification Workshop on 6/8
• Burlingame Senior Center Presentation on 6/26
• Chinese language radio and online ads from Sound of Hope continue to drive significant traffic to Peninsula Clean Energy’s programs webpages. • Outreach grantee organizations will begin organizing focus groups to provide feedback to Peninsula Clean Energy staff on messaging and programs. • Collaboration with grantees to promote the E-Bikes for Everyone program beings this month. El Concilio and Senior Coastsiders will help customers enroll in person or on the phone.
Schools and Youth Programs
Peninsula Clean Energy is supporting energy education in various ways, including:
• Funding green awareness field trips for junior high and high school students through the San Mateo County Office of Education Career and Technical Education program. The field trips are designed to interest students in careers as electricians and in other related careers that support our program implementation. • Funding student stipends for the Youth Climate Ambassadors program • Sponsoring the annual Youth Climate Film Festival
• Sponsoring energy dashboards for school districts to track campus energy usage • Funding the San Mateo County Office of Education to assist school districts in baseline assessments of gas equipment and electrical upgrade needs to help them develop building electrification plans in the future.
Los Banos Update
We are sad to share that our Los Banos representative will be moving on from Peninsula Clean Energy in order to focus on her family. Kirsten Andrews-Schwind and Marc Hershman will serve as interim representatives at the community and local government levels in Los Banos while we hire for this position. We thank Sandra for her wonderful work leveraging her vast network in Los Banos for a smooth and successful launch in this community.
News & Media
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Full coverage of Peninsula Clean Energy in the news can be found on our News & Media webpage.
ENROLLMENT UPDATE
ECO100 Statistics (since May report)
Total ECO100 accounts at end of May: 6,544
ECO100 accounts added in May: 22
ECO100 accounts dropped in May: 34
Total ECO100 accounts at the end of April: 6,556
Enrollment Statistics
Opt-outs during May 2023 were 150, which is 13 more than the previous month of April 2023 (137). This includes 57 opt outs in our new service territory of Los Banos during the month of April and 94 from San Mateo County during this month. Total participation rate across all of San Mateo County as of the end of May was 97.08%. The participation rate for the City of Los Banos as of the end of May 2023 was 88.47%.
In addition to the County of San Mateo, there are a total of 15 ECO100 cities which means they have elected to receive 100% renewable energy for their municipal accounts. As of May 30, 2023, the ECO100 towns and cities include: Atherton, Belmont, Brisbane, Burlingame, Colma, Foster City, Half Moon Bay, Hillsborough, Menlo Park, Millbrae, Portola Valley, Redwood City, San Carlos, San Mateo, and Woodside.
The opt-up rates below include municipal accounts, which may noticeably increase the rate in smaller jurisdictions.
Table reflects data as of May 30, 2023
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STRATEGIC PLAN
This section describes how the above Marketing and Community Care activities and enrollment statistics relate to the overall goal and objectives laid out in the strategic plan.
The table indicates which objectives and particular Key Tactics are supported by each of the Items/Projects discussed in this memo. The strategic goal for Marketing and Customer Care is: Develop a strong brand reputation that drives participation in Peninsula Clean Energy’s programs and ensures customer satisfaction and retention.
Item/Project
Objective A:
Elevate Peninsula
Clean Energy’s
brand reputation as
a trusted leader in
the community and
the industry
Objective B:
Educate and
engage
stakeholders in
order to gather
input, inspire action
and drive program
participation
Objective C:
Ensure high
customer
satisfaction and
retention
Social Media Policy KT3 Tell the story
of Peninsula Clean
Energy through
diverse channels
Zero Percent Loan
and Heat Pump
Rebates programs
KT6: Promote
programs and
services, including
community energy
programs and
premium energy
services
Electrification
Messaging Project
KT5: Provide
inspirational,
informative content
that spurs action to
reduce emissions.
EV Campaign KT6 (see above)
All-Electric Leader
Awards
KT6 (see above)
Los Banos Update KT4: Engage
community through
participation in
local events
KT6 (see above)
Los Banos Update KT4: Engage
community through
participation in
local events
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News and Media
Announcements
KT1: Position
leadership as
experts on CCAs
and the industry
KT2: Cultivate
relationships with
industry media and
influencers
KT3 (see above)
ECO100 and
Enrollment Statistics
Reports on main
objective C
* “KT” refers to Key Tactic
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PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: June 9, 2023
BOARD MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority (PCE) Board of Directors FROM: Jeremy Waen, Director of Regulatory Policy
Doug Karpa, Senior Regulatory Analyst
Matthew Rutherford, Senior Regulatory Analyst
Zsuzsanna Klara, Regulatory Compliance Analyst
SUBJECT: Update Regarding Regulatory Policy Activities
SUMMARY
Jeremy continues to direct the team, oversee key proceedings relating to the Power Charge Indifference Adjustment (PCIA) and annual rate adjustments.
Doug has been heavily focused on Resource Adequacy and Integrated Resources Planning at the California Public Utilities Commission’s (CPUC). He has also engaged with the California Independent System Operator on issues of Resources Adequacy, Transmission Planning, Interconnection, and Deliverability.
Matthew has continued his work in supporting PCE’s programmatic efforts through Transportation Electrification, Building Decarbonization, Resiliency, Supplier Diversity, Demand Flexibility, Demand Response, and DAC-Green Tariff matters.
Zsuzsanna worked with the Power Resources and the Programs team on coordinating the filings due in May and April. She is also focused on the future challenges on the Green-e program and coordinating the Meet & Greets with CPUC and CEC Commissioners.
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DEEPER DIVE
Regulatory Compliance
In May Zsuzsanna focused on coordinating the annual Meet & Greets with the CPUC and CEC Commissioners and preparing the necessary presentation materials with team members.
Zsuzsanna continued the discussions with other CCAs, PG&E and the SMUD regarding the news that California Air Resources Board (CARB) may run out of allowances for the 2023 Green-e Energy reporting year. The goal is to lobby CARB to allocate more allowances to Voluntary Renewable Energy Program (VREP), and lobby Center for Resource Solutions (CRS) to change the requirements for the Green-e program. She also worked on finalizing a letter to CARB;signatories will be EBCE, CPA, CleanPowerSF, PCE, and probably OCPA. The letter is expected to be sent in the third week of June.
Zsuzsanna coordinated the filings of data requests for the Power Resources team and the Programs to have up-to-date information about the status of the monthly ongoing filings and the May and June due filings. Zsuzsanna worked on a PG&E data request about DAC-GT and CSGT budget for Program Year 2022. Zsuzsanna started to work with the Programs team on managing future compliance obligations regarding the FLEXmarket program.
In May/June the main compliance filings included the following:
• AMI Annual Data Report, due 5/1 (submitted)
• Q1 DAC-GT quarterly report, due 5/1 (submitted)
• Monthly Procurement Status Report (CPUC) – Due 5/11/23 (submitted) • Q1-2023 QFER Report / CEC 1306B (CEC) – Due 5/15/23 (submitted) • Power Source Disclosure (CEC) – Due 6/1/23 (submitted) • Mandatory GHG Emissions Reporting Requirement (CARB) – 6/1/23 (submitted) • Monthly Procurement Status Report (CPUC) – Due 6/8
• DAC-GT Annual Budget AL needed correction because of previous formula error:
the supplemental AL (AL 30-E-A) was submitted on 6/8
Integrated Resource Planning & Resource Adequacy
The CPUC has issued a Proposed Decision, which among other changes, would prohibit CCAs from filing expansion plans for two years after any RA deficiency. This proposed prohibition is already under challenge from CalCCA, and various parties are advocating for a more flexible structure than what is presently contemplated within the Commission’s Proposed Decision. This Proposed Decision also includes new requirements for unspecified RA imports, making RA compliance likely to be more challenging in future cycles.
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The Commission has recently resumed its IRP-related policymaking efforts starting with further system modeling which may feed into future procurement decisions. (Public Policy Objective A, Key Tactic 1, and Key Tactic 2; Public Policy Objective C, Key Tactic 3)
California Independent System Operator
The California independent System Operator has implemented three new stakeholder processes that are likely to have critical impacts on Peninsula Clean Energy’s operations:
1. RA: the CAISO is undertaking a reform of their Resource Adequacy methodologies in light of the CPUC’s adoption of the 24 hourly “slice-of-day" methodology (the CAISO RA requirements run in parallel to the CPUC requirements, and so ideally would be harmonized).
2. Interconnection: the CAISO is undertaking a comprehensive review of their interconnection study processes. If successful, the reforms may clear up the significant backlog of applications and speed future interconnection studies that are currently a bottleneck for bringing new generation capacity online.
3. Deliverability: the CAISO is also undertaking a review of the deliverability methodologies, which determine whether a generator is eligible to provide Resource Adequacy services. If successful, this could increase the amount of available Resource Adequacy capacity to some degree.
The RA stakeholder process may run into 2025, but the other two stakeholder processes are currently scheduled to be completed by the end of 2023. (Public Policy Objective A, Key Tactic 1, and Key Tactic 2; Public Policy Objective C, Key Tactic 3)
DAC-GT/CSGT Applications for Program Review
Matthew continues to lead PCE’s engagement in policy matters related to PCE’s Disadvantaged Communities Green Tariff (DAC-GT) and Community Solar Green Tariff (CSGT) programs.
In May 2022, PG&E, SCE, and SDG&E each filed applications for review of the DAC-GT/CSGT programs, as well as the Green Tariff Shared Renewables and Enhanced Community Renewables programs, collectively referred to as the Green Access Programs (GAP). The CPUC consolidated the applications into one proceeding which has also considered the creation of new programs or tariffs that would propose the development of solar facilities. The Parties have completed several rounds of testimony and briefing. A Proposed Decision (PD) is currently anticipated for Quarter 3 2023.
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PCE has collaborated on a joint engagement effort with several CCAs who administer their own DAC-GT and CSGT programs. The Joint CCA’s primary focuses throughout the proceeding have been to advocate for ways in which the DAC/CSGT programs should to improve upon the efficient delivery of program benefits to participating low-income customers, and to ensure that program administrators will continue to receive cost recovery for the long-term solar PPAs they signed to serve these programs. Many parties’ filings have opined that the DAC-GT and CSGT programs should be frozen or discontinued while failing to acknowledge the success of many of the CCAs’ programs that have delivered millions of dollars of rate relief to the low-income participants and procured enough new resources to cover roughly 2/3 of their allocated program capacity.
Parties have also submitted proposals to establish a new community renewable energy program consistent with Assembly Bill 2316 (Ward, 2022). The proposal that has received the most attention is the Net Value Billing Tariff propose by the Coalition for Community Solar Access (CCSA). As it follows a tariff structure, CCAs cannot be compelled by the CPUC to offer the tariff. In its essence, the proposal is to stablish a feed-in-tariff which would pay combined solar and storage facilities for the energy they export using a valuation structure that is meant to reflect the actual value of those exports to the load serving entity (e.g. the facility would be paid for energy according to the CAISO day ahead marginal price, theoretically offsetting costs the LSE would have otherwise paid). The IOUs have pointed out many potential issues with the proposal which will either need to be settled in the PD or through subsequent process. One example of the issues is whether these facilities as designed would be behind the meter or in front of meter (IFOM). This raises questions as to whether they would be CPUC or FERC jurisdictional, whether the valuation scheme as proposed would be appropriate for IFOM projects, and whether they would provide the LSE with any Resource Adequacy benefit as claimed by CCSA. The IOUs have also estimated that their billing systems would each require upgrades in excess of $10 million in order to offer the tariff.
(Public Policy Objective A, Key Tactic 1, Key Tactic 2, and Key Tactic 3) Building Decarbonization & Transportation Electrification The Commission’s proceedings relating to building and transportation electrification remain quiet as well. As such, staff bandwidth has shifted towards supporting PCE’s other programmatic objectives such aiding the implementation of the Disadvantaged Communities (DAC-GT) program and PCE’s FLEXmarket program. (Public Policy Objective A, Key Tactic 1, and Key Tactic 2; Public Policy Objective C, Key Tactic 3)
STAKEHOLDER OUTREACH
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Dr. Karpa hosted Peninsula Clean Energy’s regular monthly call with environmental justice and environmental advocates and other CCA staff on May 24 to discuss the environmental and justice implications of the proposed Income Graduated Fixed Charge and also on June 14th to discuss ongoing legislative and regulatory issues. (Public Policy Objective A, Key Tactic 2)
FISCAL IMPACT
Not applicable.
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PENINSULA CLEAN ENERGY AUTHORITY
Board Correspondence
DATE: June 8, 2023
BOARD MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Marc Hershman, Director of Government Affairs
SUBJECT: Update on Peninsula Clean Energy’s Legislative Activities SACRAMENTO SUMMARY:
The 2023-24 state legislative session policy and budget committees held hearings throughout the months of April and May.
April 28 was the deadline for bills with a fiscal component to be heard in committee in their house of origin. Those bills with a fiscal component were required to pass their respective policy committees and were then referred to the respective fiscal committees in each house. The fiscal committees had until May 19 to hear those bills and report them to the floor of their respective houses.
May 5 was the deadline for bills that are not fiscal in nature to be heard in committee and then reported to the floor in their house of origin. May 12 was the last date on which policy committees met. They can resume hearings on June 5.
June 2 was the last date by which each house could pass a bill introduced in that house.
The state budget must be passed by midnight on June 15.
The leadership of the state Assembly is scheduled to change on July 1. It was announced late last year that Assemblymember Robert Rivas (D-Hollister) would become the Speaker, replacing Speaker Anthony Rendon. It is unclear whether additional changes will also take place. We will monitor closely any information regarding the chairs and composition of the Assembly’s key energy and other relevant legislative committees.
The Legislature’s summer recess will run from July 14 to August 14.
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PENINSULA CLEAN ENERGY SPONSORED LEGISLATION - BROWN ACT BILL SB 537, introduced by Senator Josh Becker and sponsored by Peninsula Clean Energy, addresses the ability of board members of multijurisdictional bodies, like ours, to attend meetings virtually from remote locations.
SB 537 was heard in the Senate Committee on Governance and Finance on April 19.
Peninsula Clean Energy Vice Chair Donna Colson was a lead witness and aided by her strong testimony the bill passed that committee by a vote of 6-2.
We greatly appreciate the many letters of support for SB 537 from local jurisdictions and elected officials. These include Atherton, Brisbane, Burlingame, Colma, Foster City, San Bruno, San Carlos, San Mateo, South San Francisco, Menlo Park Councilmember Betsy Nash, and Hillsborough Councilmember Leslie Ragsdale.
In addition to local support, letters and official support was also lodged by the League of California Cities, CalCCA, Streets for All, Los Angeles County Sanitation Districts, and sister CCAs Sonoma Clean Power and San Diego Community Power.
Opposition to the bill has come from the ACLU, California News Publishers, Cal Aware, California Broadcasters Association, First Amendment Coalition, Howard Jarvis Taxpayers Association, and the Leadership Council for Justice and Accountability.
At the insistence of the Committee on Governance and Finance, several amendments to the bill were made. Of greatest significance, the bill was amended so that virtual participation has been limited to board members who reside more than 40 miles from the venue in which the meeting is being held and the location of the participant must be included in the agenda of the meeting.
SB 537 was then heard by the Senate Committee on the Judiciary on Tuesday, May 2.
Peninsula Clean Energy Director Marty Medina provided compelling lead testimony and the Committee voted 9-2 in support of SB 537.
Of note, several other bills that would amend the Brown Act were introduced in this legislative session. Peninsula Clean Energy sent in a letter of support for AB 1379, authored by Assemblymember Diane Papan. However, that bill was pulled from consideration by the author before it was heard in committee.
SB 537 was considered by the full Senate on May 30. It was passed off the floor of the Senate by a vote of 32-8 and is now awaiting assignment to an Assembly committee.
We continue to work with the author and Committee representatives to improve the bill and ensure its passage.
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AB 538 (Holden) – LEGISLATION TO REGIONALIZE THE GRID
AB 538 is a renewed effort by Assemblymember Holden to move California away from the California Independent System Operator as the manager of our state’s electric grid and in its place have California join a multi-state regional transmission system.
Proponents have argued that a regional system could accelerate California’s ability to meet its clean energy goals, ensure the reliability of the grid and enable the system to scale up to meet the needs of the state’s customers. It has also been posited that a regional system will be more transparent around energy prices and emissions while saving money.
Opponents theorize that joining a regional transmission system would dilute California's ability to meet those very same needs and diminish our state’s voice on critical clean energy issues. Of significant concern is the impact a regional system would have on California utility workers.
AB 538 was heard in the Assembly Committee on Utilities and Energy. It was passed out of the committee on April 26 after the author, Assemblymember Holden, agreed to work on changes to the bill. Before the bill was amended and could come up for a vote in the Assembly Committee on Appropriations, which Mr. Holden chairs, the bill was withdrawn from consideration.
Shortly thereafter Governor Newsom issued a press release indicating his interest in advancing regionalization.
Given these developments, AB 538 could be revisited by the Legislature at any time.
FY 2023-24 State Budget / AB 1373 (E. Garcia)
As noted in previous Legislative Updates, the Governor introduced a budget trailer bill earlier this year that has raised significant issues of concern. In the budget proposal the Governor seeks to broaden the scope of procurement by enabling the Department of Water Resources to act as a central procurement entity. The trailer bill also adds a capacity payment penalty for Resource Adequacy deficiencies. Further it seeks to clarify the California Public Utilities Commission’s Integrated Resource Plan authority over CCAs.
Peninsula Clean Energy and CalCCA have met with legislators, their staff members and Administration officials to try and move this from a budget bill, which would short circuit the hearing process, to a policy bill. We were successful in the Assembly and in April AB 1373 (E. Garcia) was introduced.
In meetings with legislative staff, we have expressed our concerns with the substance of AB 1373, and we filed a letter taking the position of “Oppose Unless Amended”. Our letter questioned the need for a central procurement entity and highlighted our biggest concerns: interconnection and the transmission system.
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Along with the Municipal Utilities, CalCCA provided the lead testimony expressing our concerns with the bill in the Assembly hearing on AB 1373. We also expressed our opposition to the bill’s proposal giving the Public Utilities Commission an expanded, ill-defined Integrated Resource Plan jurisdiction over CCA procurement autonomy. And we raised objection to the bill proposal of a capacity penalty payment for Resource Adequacy deficiencies.
AB 1373 passed the Assembly Committee on Utilities and Energy. It then went to the Committee on Appropriations where it passed on May 18. The bill was then sent to the floor of the Assembly where on May 26 it passed by a vote of 57-17 (with 6 members not voting.
We continued to work with local legislators and other stakeholders to refine the bill to address our issues of concern. We are pleased to report that the Assembly adopted many of the amendments CCAs sought and the version of AB 1373 that was passed off the floor of the Assembly on May 26 was significantly improved. As a result, we have drafted a letter withdrawing our opposition and moving to a neutral position on the legislation.
As of this writing the Senate budget bill has not been printed and we have concerns that despite our efforts and those of CaCCA the Senate version of this legislation will contain many of the policy provisions found in the trailer bill proposal introduced by the Governor.
Governor Newsom unveiled his proposed 2023-24 budget on January 10. His revised budget, advanced by the Governor on May 12, and based in part on the receipt of the April tax revenues, shows that an even larger deficit looms.
It is noted that due to the natural disasters in California both the state and federal government have extended the deadline for Californians filing tax returns which could hamper officials from accurately determining the size of revenues available for the next fiscal year. The Legislature must adopt the budget for the next fiscal year in June, which is months before the new tax filing deadline.
(Public Policy Objective B, Key Tactic 1)
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PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: June 9, 2023
BOARD MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Jan Pepper, Chief Executive Officer, Peninsula Clean Energy Rafael Reyes, Director of Energy Programs
SUBJECT: Community Programs Report
SUMMARY
The following programs are in progress, and detailed information is provided below:
1. Highlights from Prior Month
2. Building and EV Reach Codes
3. Buildings Programs
3.1. Appliance Rebates and On-Bill Financing
3.2. Low-Income Home Upgrades & Electrification
3.3. Building Pilots
3.4. Refrigerator Recycling
4. Distributed Energy Programs
4.1. Solar and Storage for Public Buildings
4.2. Residential Solar + Battery Backup
4.3. FLEXmarket
4.4. Community Solar, DAC-GT
5. Transportation Programs
5.1. “EV Ready” Charging Incentive
5.2. Used EV Rebate
5.3. EV Ride & Drives/EV Rental Rebate
5.4. E-Bikes for Everyone Rebate
5.5. Municipal Fleets
5.6. Transportation Pilots
DETAIL
1 Highlights from Prior Month
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• 32 new smart outlets were installed in a Belmont apartment building, as part of the EV Ready program, the largest multi-family residential install in the program to date.
• The buildings program has crossed over 1,000 electric heat pump water heaters and heat pump space conditioning systems since inception in 2021 • PCE’s Residential FLEXmarket opened and is available to aggregators of energy efficiency and building electrification projects to shape customer load to reduce grid costs and GHG emissions.
• The Lyft electrification pilot has delivered over 250 thousand rides and 3.5 million miles
2 Building and EV Reach Codes
Background: In 2018 the Board approved a building “reach code” initiative to support local governments in adopting enhancements to the building code for low-carbon and EV ready buildings. The initiative is a joint project with Silicon Valley Clean Energy (SVCE) and East Bay Community Energy (EBCE). The program includes no-cost technical assistance, model codes and other tools. The tools and model code language are available on the project website (www.BayAreaReachCodes.org).
In addition, in January 2020 the Board approved an extension of the reach code technical assistance plus additional elements – Education and training for developers and contractors, and consumer education program on the benefits of all-electric buildings.
This technical assistance is publicly available at www.AllElectricDesign.org. In December 2020, the Board approved to extend the contract with TRC Engineers include technical assistance for developing policy for existing buildings. In February 2022 the Board extended the initiative for another two years.
Model Code Summary
• New construction building electrification codes require all-electric and include a menu of exceptions for cities to choose from • New construction EV codes are the same as last cycle for most building types, requiring more access than the state code. Multi-family buildings are required to provide at least one level 2 charging access point for every dwelling unit. 15% must be Level 2 charging stations. 85% can be low-power Level 2 EV ready. • Existing building model codes provide a full menu of options for cities to choose from, including: end of flow requirements, time-of-replacement mandates, time of sale disclosure requirements, and a requirement to upgrade existing EV-capable circuits to EV-ready by a time-certain deadline.
Status:
• City Progress: Most cities with reach codes from the prior cycle have re-adopted or adopted for the first time, including:
o New construction
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Adopted: Atherton, Belmont, Brisbane, Burlingame, County of San Mateo, Daly City, Half Moon Bay, Hillsborough, Menlo Park, Millbrae, Pacifica, Portola Valley, Redwood City, San Bruno, San Carlos, San Mateo, East Palo Alto
Continuing reach codes from 2019: Hillsborough
In Progress: South San Francisco, Colma
o Existing buildings
Adopted: Portola Valley, City of San Mateo
Exploring: San Carlos, Menlo Park, County of San Mateo • Berkeley 9th circuit ruling – The 9th circuit court of appeals has ruled against Berkeley in a case brought by the California Restaurant Association and funded by Sempra (SoCalGas.) Berkeley’s has requested an En Banc hearing from the 9th circuit.The next step after that, for either party, would be an appeal to the Supreme Court. o The 9th circuit ruling is specific to the Berkeley code. Most cities adopted a different code based on the state energy code.
o Our legal staff is available to connect with Cities’ attorney, and has already done that for some jurisdictions. Ultimately, it is up to each jurisdiction how they move forward at the moment.
o Our team is developing alternative code approaches to provide options for cities to continue to support building decarbonization
Strategic Plan:
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation, and initiate the transition to clean energy buildings • Key Tactic 3: Ensure nearly all new construction is all-electric and EV ready • Key Tactic 4: Establish preference for all-electric building design and appliance replacement among consumers and building stakeholders
3 Buildings Programs
3.1 Appliance Rebates and Zero Percent Loans
Background: In May 2020, the Board approved a 4-year, $6.1 million for electrifying existing buildings. This included $2.8 million for implementing an appliance rebate program. Peninsula Clean Energy successfully launched the heat pump water heater (HPWH) rebates on January 01, 2021. Peninsula Clean Energy rebates were exclusively offered in partnership with BayREN’s Home+ program, which offers additional rebates for HPWHs that are combined with Peninsula Clean Energy’s. Additionally, in August 2021, the Board approved an On-Bill Financing program (now referred to as the Zero Percent Loan program) with $1.0 million in loan capital (treated as a balance sheet asset and not part of the annual budget). The program offers qualified residential customers a 0% interest loan up to $10,000 to fund the cost of eligible electrification and complementary electrical and energy efficiency upgrades.
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On October 17, 2022, Peninsula Clean Energy launched its Zero Percent Loan program and rolled out modifications and enhancements to the Appliance Rebates Program including increasing its HPWH rebate, launching a new heat pump heating ventilation and air conditioning (HVAC) rebate, adjusting the eligibility criteria for its electrical panel upgrade bonus rebate, and creating a rebate application process for customers not working with BayREN contractors, while still maintaining the integrated application process with the BayREN Home+. These modifications were made to A) bring fuel switching/electrification to at least cost parity with gas replacements, B) backstop the loss of state incentives, and C) support the adoption of existing building reach codes.
Status: The table below summarizes the number of rebates issued as of June 9, 2023.
Upgrade Type Count
HPWH rebates 607
Heat pump HVAC rebates 322
Electrical panel rebates 127
Zero percent loans completed 110 for $987,302
Additional zero percent loans reserved 82 for $797,440
The chart below summarizes the number of applications received by month by upgrade type.
Strategic Plan:
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation, and initiate the transition to clean energy buildings • Key Tactic 4: Establish preference for all-electric building design and appliance replacement among consumers and building stakeholders
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3.2 (Low-Income) Home Upgrade Program
Background: In May 2020, the Board approved $2 million for implementing a turnkey low-income home upgrade program to offer minor home repair, energy efficiency, and electrification measures to income-qualified homeowners at no cost to them. The measures implemented in each home will vary depending on the home’s needs but will include at least one electrification measure such as installing a HPWH or replacing a gas stove with an electric induction stove. The Board approved a contract extension for $1.5 million in February 2023 which included more homes for the current service plus 4-6 whole home electrification upgrades.
Status: The program was announced on September 28, 2021. The below table summarizes the program’s status as of the end of May.
Stage/category #s
Leads 4259
Reached 1349
Pre-assessments 624
Enrolled and eligible 233
Installations in progress 19
Fully complete 178
The following table summarizes the number of electrification measures implemented on the fully complete homes.
Measure Count
Heat pump water heater 71
Induction cooktop/range 44
Electric dryer 42
Central or mini split heat pump (HVAC) 3
Window or wall mounted heat pump (HVAC) 10
Portable heat pump (HVAC) 45
Strategic Plan:
Goal 3 – Community Energy Programs
Objective B: Community Benefits: Deliver tangible benefits throughout our diverse communities
• Key Tactic 1: Invest in programs that benefit underserved communities • Key Tactic 3: Support workforce development programs in the County
3.3 Building Pilots
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Background: In May 2020, The Board approved $300,000 for piloting a new innovative technology from Harvest Thermal Inc., a Bay Area-based startup, that combines residential space and water heating into a unified heat pump electric system with a single water storage tank. Through this project, this technology will be installed in 3-5 homes within the San Mateo County to assess its performance and demonstrate its effectiveness for emission reductions.
Status (no updates from last month): The home recruitment process began in late April 2021 and the project received 290 applications. Homes were selected based on technical criteria (home characteristics, energy usage patterns, and technical feasible of the upgrade within budget). The four pilot homes are located in Daly City, South San Francisco, Redwood City, and Menlo Park. As of September 7, 2022, all four homes have had their system installed. The consulting firm TRC has been contracted to provide independent measurement and verification services for the project and have begun collecting data on the homes installed. The 12-month data collection period ended on 4/23, with draft results expected in the summer, final results in the fall, and project closure by the end of the year.
Strategic Plan:
Goal 3 – Community Energy Programs
Objective C: Innovation and Scale: Leverage leadership, innovation, and regulatory action for scaled impact
• Key Tactic 1: Identify, pilot, and develop innovative solutions for decarbonization
3.4 Refrigerator Recycling
Background: In April 2019, Peninsula Clean Energy launched a small turnkey refrigerator recycling program with a budget of $75,000 as part of the Community Pilots program. The program administrator, ARCA Recycling, manages orders intake, pick up scheduling, and rebate processing. The objective of the program is to capture high impact greenhouse gas gases from old appliances by facilitating proper recycling of the appliance’s refrigerants and foaming agents for insulation.
Peninsula Clean Energy executed an amendment effective March 1, 2023 to add $95,000 to the residential program and remove bulk pickups.
Status: This program is on pause. ARCA is going through an ownership change, and they stopped doing pickups during this transition. Customers can still place orders, but they will not be scheduled until ARCA has resumed appliance pick-ups. They have not provided an estimated timeframe.
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Since inception in April 2019, the recycling program has recycled 842 refrigerators and freezers resulting in over 1,600 MTCO2e in greenhouse gas reduction.
Strategic Plan:
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation, and initiate the transition to clean energy buildings • Key Tactic 4: Establish preference for all-electric building design and appliance replacement among consumers and building stakeholders
4 Distributed Energy Programs
Peninsula Clean Energy has Board-approved strategies for the promotion of 20 MW of new distributed energy resources in San Mateo County and is advancing distributed energy resources to provide resilience, lower decarbonization costs, provide load shaping to support our strategic goal for 24/7 renewables. The projects described below are efforts towards meeting both of these goals.
4.1 Solar and Storage for Public Buildings
Background: The Solar and Storage for Public Buildings is aimed at aggregating local government facilities into a group procurement of solar and optionally storage systems.
Peninsula Clean Energy provides no-cost site assessments and preliminary designs as well as manages the procurement process. Participating sites have systems installed as part of power purchase agreements directly with Peninsula Clean Energy. As part of the pilot phase, in October 2020, the Board approved a Solar Site Evaluation Services contract with McCalmont Engineering for Solar site evaluation and designs for County and municipal facilities identified as candidates for solar-only or solar + storage resilience projects. In March 2022, the board approved up to $8 million in capital for system installations to be repaid over 20 years and $600,000 for technical assistance on the second round of the aggregated solar program. Intermountain Electric Company was selected in the competitive solicitation on the basis of its pricing, experience, labor practices, and other metrics. Intermountain is a local union firm with an excellent reputation. At the January, 2023 Board Meeting, the Board of Directors granted authority to the CEO to execute the installation contract and power purchase agreements with participating agencies in the first round.
In December 2022, the CPUC finalized a decision to change rules to net metering, which will reduce the value of solar exported to the grid during the day. Customers can get grandfathered into current net metering rules (“NEM 2.0”) before the rules go into effect (“NEM 3.0”). Interconnection applications were submitted for the first portfolio of systems in October 2022 to secure a grandfathered position under NEM 2.0.
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Staff is running the second round of the program. Staff expects to increase the size of the portfolio from round one and help our customers lock-in NEM 2.0 for their projects.
Status
For the first round of the Program, 12 PPAs for 1.27 MWdc have been executed with 10 jurisdictions. w. Intermountain Electric Company is finalizing technical designs and related documentation for all sites. Construction is expected to begin by the end of this calendar year, with all sites being complete by end of Q1, 2024.
A total of 23 agencies expressed interest in the second round of the program, providing staff with 120 facilities to evaluate for their solar potential. Site walks have been executed at all viable facilities with engineering firms NV5 and SepiSolar. 38 interconnection applications for >16 MWdc were submitted by the April 14th deadline to grandfather them into the more favorable NEM 2.0 rules.. Other sites considered were disqualified for technical reasons.
Staff is currently developing the energy contract, construction contract, financial proposal, and procurement documents as part of the second round.
4.2 Residential Solar + Battery Backup
Background: The Residential Solar + Battery Backup offers energy resiliency program in partnership with Sunrun. This program provides energy storage systems paired with solar power to single family customers. Customers who sign up for this program receive an incentive up to $500. At Peninsula Clean Energy’s direction, Sunrun will dispatch the stored energy during evening hours when renewable generation on the California grid is low and electricity prices are high. This will also help Peninsula Clean Energy to reduce its peak load and thereby reduce our resource adequacy requirements.
Status (no updates from last month): The program has commenced dispatching customer batteries in the evening to help reduce Peninsula Clean Energy’s net peak.
Sunrun continues to enroll new customers throughout 2023 and, as they enroll more customers, available capacity from their distributed battery storage fleet continues to increase as well. Sunrun and staff included distributed battery storage in their 2024 load forecast submission, which will result in a lower net peak and smaller RA allocation for calendar year 2024.
4.3 FLEXmarket
Background: In November 2021 the Board approved a program plan for the establishment of an innovative “virtual power plant” using what is known as FLEXmarket.
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incentives on confirmed performance using meter data. This novel structure was innovated by MCE and is also being implemented by East Bay Community Energy and Sonoma Clean Power. In addition, the program plan was developed for submission to the CPUC to allow Peninsula Clean Energy to run the program with fully reimbursed funding through the CPUC. Peninsula Clean Energy’s billing data services provider Calpine has entered into a strategic partnership with the firm Recurve to provide FLEXmarket services through a streamlined structure.
Status: The residential FLEXmarket is officially open. Providers of energy efficiency and building electrification equipment can apply for incentives through this program. In addition, Peninsula Clean Energy anticipates submitting its own projects to receive CPUC funds under the program. Staff is developing the commercial version of the program to be launched later in 2023.
4.4 Community Solar, DAC-GT & CSGT
Background: The Disadvantaged Communities Green Tariff program (“DAC-GT”) and associated Community Solar Green Tariff (“CSGT”) are community solar programs developed by the California Public Utilities Commission (CPUC) to enable DAC residents to participate in renewable energy projects, and to promote development of renewable projects in DACs. Participating customers will receive a 20% discount on their full electric bill (PG&E and Peninsula Clean Energy charges). Peninsula Clean Energy administers these programs on behalf of its customers.
Peninsula Clean Energy began enrolling DAC-GT customers in San Mateo County in January 2022 and customers in Los Banos in April 2022. Those customers are currently served by an interim resource procured from Marin Clean Energy pending Peninsula Clean Energy’s procurement of a new renewable resource for the program.
Per the CPUC DAC program guidelines, Peninsula Clean Energy is authorized to procure up to 3MW of solar capacity. Until a new solar resource is procured, Peninsula Clean Energy will serve customers from MCE’s interim resource. Peninsula Clean Energy executed a PPA with Marin Clean Energy for its existing Goose Lake Solar project, which meets DAC program guidelines, to provide for its DAC customers until a permanent resource is procured.
Status: The program is currently serving approximately 1,000 customers. Peninsula Clean Energy signed a PPA with Renewable America, LLC for a 3MW solar resource located in Dos Palos, CA, approximately 15 miles southeast of the City of Los Banos. The Dos Palos Clean Power solar project has a Commercial Operation Date of August 1, 2023. In June, staff expanded their contract with MCE’s interim resource Goose Lake Solar to 3.74MWdc. This will allow more customers to subscribe to the program and receive on-bill benefits.
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Staff launched a Request for Proposals for 402kW of solar as part of their Community Solar Green Tariff (“CSGT”). Proposals were due by February 28, 2023 and are now being evaluated.
Strategic Plan
• Distributed Energy Resources: Support strategic decarbonization and local power • Key Tactic 1: Create minimum of 20 MW of new local renewable power sources in PCE service territory by 2025
• Key Tactic 2: Support distributed energy resources to lower costs, support reliability, and advance distributed and grid decarbonization • Key Tactic 3: Foster Resilience
5 Transportation Programs
5.1 Used EV Rebate Program
Background: Launched in March 2019, the Used EV Rebate Program (formerly referred to as “DriveForward Electric”) provided an incentive up to $4,000 for the purchase of used plug-in hybrid electric vehicles (PHEVs) and full battery electric vehicles (BEVs) to income-qualified San Mateo County residents (those making 400% of the Federal Poverty Level or less).
In October 2020, the Board approved expanding the program to offer used EV incentives to all San Mateo County and Los Banos residents, while maintaining the increased incentives for income-qualified residents. In February 2021, Peninsula Clean Energy executed a competitively bid contract with GRID Alternatives (“GRID”) to administer the expanded program. This rebate is available point-of-sale at qualifying dealerships or post-purchase. The incentives may be combined with other state-funded income-qualified EV incentive programs.
Status: Since the re-launch of the program in August 2021, 229 rebates have been provided under the new program (see monthly chart below).
Used EV rebates paid by month
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Strategic Plan
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation, and initiate the transition to clean energy buildings • Key Tactic 1: Drive personal electrified transportation to majority adoption Objective B: Community Benefits: Deliver tangible benefits throughout our diverse communities
• Key Tactic 1: Invest in programs that benefit underserved communities
5.2 “EV Ready” Charging Incentive Program
Background: In December 2018 the Board approved $16 million over four years for EV charging infrastructure incentives ($12 million), technical assistance ($2 million), workforce development ($1 million), and administrative costs ($1 million). Subsequent to authorization of funding, Peninsula Clean Energy successfully applied to the California Energy Commission (CEC) for the CEC to invest an additional $12 million in San Mateo County for EV charging infrastructure. Of Peninsula Clean Energy’s $12 million in incentives, $8 million was previously administered through the CEC’s California Electric Vehicle Incentive Project (CALeVIP) and $4 million under a dedicated, complementary Peninsula Clean Energy incentive fund. The dedicated Peninsula Clean Energy incentives address Level 1 charging, assigned parking in multi-family dwellings, affordable housing new construction, and public agency new construction. In August, Peninsula Clean Energy elected to directly administer the not yet approved pool of funds that were previously administered through CALeVIP, worth approximately $4 million, further described below.
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Status: Peninsula Clean Energy implemented changes in August 2022 to expedite installations, including providing customers with greater flexibility in selecting contractors, adjusted incentive levels to account for rising costs, and direct management of all Level 2 projects not already approved by the Center for Sustainable Energy in the CALeVIP program (worth approximately $4 million in funding). Since the changes were implemented in mid-August, there has been significant uptake in the program. Over ten new contractors have been added to the Technical Assistance component of the program, including 4 minority or woman-owned businesses. Customers receiving Technical Assistance may choose from these contractors or another of their choosing.
Summary of program metrics is outlined in the table below:
Sites/ Applications Ports Incentive Amount
# of sites in PCE Technical
Assistance
194 2,000+ -
# of Technical Assistance site
evaluations approved by PCE
158 1,800 -
Total # of funding applications
approved in Peninsula Clean
Energy incentive program
104 1,700 $5.8 million
# of approved funding
applications in progress in
Peninsula Clean Energy
incentive program
87 1,400 $5.2 million
# of current CALeVIP
applications*
40 630
Total # of ports installed 30 432 $1.5 million
*Includes DCFC and L2 ports: 272 DCFC, 358 L2 ports
Strategic Plan:
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation, and initiate the transition to clean energy buildings • Key Tactic 1: Drive personal electrified transportation to majority adoption • Key Tactic 5: Support local government initiatives to advance decarbonization Objective B: Community Benefits: Deliver tangible benefits throughout our diverse communities
• Key Tactic 3: Support workforce development programs in the County
5.3 E-Bikes for Everyone Rebate Program
Background: The Board initially approved the income-qualified E-Bikes Rebate program in July 2020 with a budget of $300,000, approved an increase of an additional $300,000 in December 2022, and approved a further increase of $150,000 in August 2022, bringing the total program budget to $750,000.
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The program runs in annual cycles and is available to residents with low to moderate incomes. The program has provided 510 rebates since 2021. Customers can use the rebate either at a qualifying bike shops for a point-of-sale discount, or at any other shop for a post-purchase rebate. Enrolled bike shops include Summit Bicycles, Mike’s Bikes, Sports Basement, Chain Reaction, and Epicenter Cycling. Rebates will be distributed on a first-come, first-served basis.
Status: This program reopened on June 12 for income-qualifying customers. There is enough available funding for 238 bikes. Staff will enroll 500 applicants since we expect a 50% attrition rate. Everyone after that will be placed on a waiting list.
Staff is marketing this program to CARE/FERA customers and through Peninsula Clean Energy’s Outreach Grant partners.
Strategic Plan:
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation, and initiate the transition to clean energy buildings • Key Tactic 1: Drive personal electrified transportation to majority adoption Objective B: Community Benefits: Deliver tangible benefits throughout our diverse communities
• Key Tactic 1: Invest in programs that benefit underserved communities
5.4 Public EV Fleet Program
Background: The Board approved the Public EV Fleet Program in November 2020. This program will run for three years with a total budget of $900,000 and is comprised of three components to help local agencies begin their fleet electrification efforts: hands-on technical assistance, gap funding, and a vehicle to building resiliency demonstration that will assess the costs and benefits of utilizing fleet EVs as backup power resources for agencies in grid failures and other emergencies. In August 2022, the Board of Directors approved a contract with Optony to assist in administration of this program. A workshop was held on November 16 to promote the program and recruit local agency fleet managers.
Status: The program has now started. Menlo Park, Burlingame, San Mateo, South San Francisco, and Daly City are now receiving technical assistance. Menlo Park will be installing several charging stations for fleet vehicles at the City Hall, Police Department, and Corporation Yard. Pre-construction site designs have been developed as part of the program. Other agencies are encouraged to apply, when ready, at https://www.peninsulacleanenergy.com/public-ev-fleets-program/.
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Strategic Plan:
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation and initiate the transition to clean energy buildings • Key Tactic 2: Bolster electrification of fleets and shared transportation • Key Tactic 5: Support local government initiatives to advance decarbonization Objective C: Innovation and Scale: Leverage leadership, innovation, and regulatory action for scaled impact
• Key Tactic 1: Identify, pilot, and develop innovative solutions for decarbonization
5.5 Transportation Pilots
Ride-Hail Electrification Pilot
Background: This pilot, approved by the Board in March 2020, is Peninsula Clean Energy’s first program for the electrification of new mobility options. The project partners with Lyft and FlexDrive, its rental-car partner, to test strategies that encourage the adoption of all-electric vehicles in ride-hailing applications with up to 100 EVs. Because ride-hail vehicles drive much higher than average miles per year, each vehicle in this electrification pilot is expected to save over 2,000 gallons of gas and 20 tons of greenhouse gas emissions per year.
Status: The 100 EV fleet has been put into service by Lyft and Peninsula Clean Energy is monitoring progress. Over 250 thousand rides have been provided. 350+ unique drivers have already rented them, with each rental averaging over three months. Over
3.5 million all electric miles have been driven so far with an average of 120 miles/day per vehicle, comparable to gas counterparts. Vehicles include a customer-facing PCE branded placard that informs riders about the pilot and directs them to the PCE website for more information.
Strategic Plan
Goal 3 – Community Energy Programs
Objective A: Decarbonization Programs: Develop market momentum for electric transportation and initiate the transition to clean energy buildings • Key Tactic 2: Bolster electrification of fleets and shared transportation Objective C: Innovation and Scale: Leverage leadership, innovation, and regulatory action for scaled impact
• Key Tactic 1: Identify, pilot, and develop innovative solutions for decarbonization EV Managed Charging Pilot
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Background: Peninsula Clean Energy aims to facilitate EV charging that avoids expensive and polluting evening hours through “managed charging” systems. This work is in the second phase of a pilot. In 2020, Peninsula Clean Energy ran a proof-of-concept pilot for EV managed charging with startup FlexCharging to test timing of EV charging through vehicle-based telematics. This was a limited pilot with approximately 10 vehicles.
The system utilizes existing Connected Car Apps and allows Peninsula Clean Energy to manage EV charging via algorithms as a non-hardware-based approach to shift more charging to occur during off-peak hours. The pilot is moving to Phase 2 intended for a larger set of 1,000+ vehicles. In October of 2021, the Board approved a contract up to $220,000 with the University of California, Davis’ Energy Economics Program (DEEP) to develop and advise on an incentive structure experiment that will be used to inform the Peninsula Clean Energy managed charging program design. This collaboration has been ongoing. In November, the Board approved a contract up to $220,000 with ev.energy as the platform provider for EV managed charging services.
Status: The project began development in December, including platform and data warehouse systems preparation. Large-scale recruitment recently launched, targeting a random sample of EV drivers, with the goal of recruiting at least 1,000 customers for the pilot. 200+ participants have already joined after the initial recruitment round, several additional recruitment campaigns are upcoming. A Technical Advisory Committee, consisting of staff from CEC, CPUC, CCAs, and NGOs, is also informing the pilot with an upcoming meeting in late July. .
Strategic Plan
Goal 3 – Community Energy Programs
Community Benefits: Deliver tangible benefits throughout our diverse communities • Key Tactic 1: Invest in programs that benefit underserved communities Innovation and Scale: Leverage leadership, innovation and regulatory action for scaled impact
• Key Tactic 1. Identify, pilot, and develop innovative solutions for decarbonization o Pilot and scale EV load shaping programs to ensure that 50% of energy for EV charging takes places in non-peak hours
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PENINSULA CLEAN ENERGY
JPA Board Correspondence
DATE: June 9, 2023
BOARD MEETING DATE: June 22, 2023
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Jan Pepper, Chief Executive Officer
Roy Xu, Director of Energy Programs
SUBJECT: Energy Supply Procurement Report – June 2023
BACKGROUND
This memo summarizes energy procurement agreements entered into by the Chief Executive Officer since the last regular Board meeting in May. This summary is provided to the Board for information purposes only.
DISCUSSION
Execution
Month
Purpose Counterparty Term
April Purchase of Resource
Adequacy
Direct Energy Business
Marketing, LLC
24 Months
May Purchase of Resource
Adequacy
SEMPRA GAS & POWER
MARKETING, LLC
12 Months
May Purchase of Resource
Adequacy
East Bay Community Energy
Authority
2 Months
May Purchase of Resource
Adequacy
Calpine Energy Services, L.P. 12 Months
May Purchase of Resource
Adequacy
Pacific Gas & Electric
Company
1 Month
May Purchase of Resource
Adequacy
City of Vernon 1 Month
June Purchase of Resource
Adequacy
Southern California Edison
Company
1 Month
June Purchase of Resource
Adequacy
Southern California Edison
Company
1 Month
June Purchase of Resource
Adequacy
San Diego Gas & Electric
Company
1 Month
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June Purchase of Resource
Adequacy
City of Banning 1 Month
June Purchase of Resource
Adequacy
Shell Energy North America
(US), L.P.
1 Month
June Sale of Import
Allocation Rights for
Resource Adequacy
Silicon Valley Clean Energy 1 Month
In January 2020, the Board approved the following Policy Number 15 – Energy Supply Procurement Authority.
Policy: “Energy Procurement” shall mean all contracting for energy and energy-related products for PCE, including but not limited to products related to electricity, capacity, energy efficiency, distributed energy resources, demand response, and storage. In Energy Procurement, Peninsula Clean Energy Authority will procure according to the following guidelines:
1) Short-Term Agreements:
a. Chief Executive Officer has authority to approve Energy Procurement contracts with terms of twelve (12) months or less, in addition to contracts for Resource Adequacy that meet the specifications in section (b) and in Table 1 below. b. Chief Executive Officer has authority to approve Energy Procurement contracts for Resource Adequacy that meet PCE’s three (3) year forward capacity obligations measured in MW, which are set annually by the California Public Utilities Commission and the California Independent System Operator for compliance requirements.
c. Chief Financial Officer has authority to approve any contract for Resource Adequacy with a term of twelve (12) months or less if the CEO is unavailable and with prior written approval from the CEO.
d. The CEO shall report all such agreements to the PCE board monthly.
Table 1:
Product Year-Ahead Compliance
Obligation
Term Limit
Local Resource
Adequacy
In years 1 & 2, must demonstrate
capacity to meet 100% of monthly
local obligation for years 1 and 2
and 50% of monthly local obligation
for year 3 by November 31st of the
prior year
Up to 36 months
System Resource
Adequacy
In year 1, must demonstrate
capacity to meet 90% of system
obligation for summer months (May
– September) by November 31st of
the prior year
Up to 12 months
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2) Medium-Term Agreements: Chief Executive Officer, in consultation with the General Counsel, the Board Chair, and other members of the Board as CEO deems necessary, has the authority to approve Energy Procurement contracts with terms greater than twelve (12) months but not more than five (5) years, in addition to Resource Adequacy contracts as specified in Table 1 above. The CEO shall report all such agreements to the PCE board monthly.
3) Intermediate and Long-Term Agreements: Approval by the PCE Board is required before the CEO enters into Energy Procurement contracts with terms greater than five (5) years.
4) Amendments to Agreements: Chief Executive Officer, in consultation with the General Counsel and the Board Chair, or Board Vice Chair in the event that the Board Chair is unavailable, has authority to execute amendments to Energy Procurement contracts that were previously approved by the Board.
STRATEGIC PLAN
The contracts executed in April, May and June support the Power Resources Objective 2 for Procurement: Procure power resources to meet regulatory mandates and internal priorities at affordable cost.
Flexible Resource
Adequacy
In year 1, must demonstrate
capacity to meet 90% of monthly
flexible obligation by November 31st
of the prior year
Up to 12 months
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Item No. 18
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
This item will be published as part of the July 27, 2023 Board of Directors Meeting.
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COMMONLY USED ACRONYMS AND KEY TERMS
AB xx – Assembly Bill xx
ALJ – Administrative Law Judge
AMP- Arrears Management Plans
AQM – Air Quality Management
BAAQMD – Bay Area Air Quality Management District
BLPTA – Buyer Liability Pass Through Agreement
CAC – Citizens Advisory Committee
CAISO – California Independent System Operator
CalCCA – California Community Choice Association
CAM – Cost Allocation Mechanism
CAP – Climate Action Plan
CAPP – California Arrearage Payment Program
CARB – California Air Resources Board, or California ARB CARE- California Alternative Rates for Energy Program
CBA – California Balancing Authority
3CE- Central Coast Community Energy (Formerly Monterey Bay Community Power-MBCP) CCA – Community Choice Aggregation (aka Community Choice Programs (CCP) or CCE – Community Choice Energy (CCE)
CCP – Community Choice Programs
CEC – California Energy Commission
CPP- Critical Peak Pricing
CPSF – Clean Power San Francisco
CPUC – California Public Utility Commission (Regulator for state utilities) (Also PUC) CSD – California Department of Community Services and Development CSGT - Community Solar Green Tariff
DA – Direct Access
DAC-GT - Disadvantaged Communities Green Tariff
DER – Distributed Energy Resources
DG – Distributed Generation
DOE – Department of Energy
DR – Demand Response
DRP – Demand Response Provider
DRP/IDER – Distribution Resources Planning / Integrated Distributed Energy Resources EBCE – East Bay Community Energy
ECOplus – PCE’s default electricity product, 50% renewable and 50% carbon-free (in 2021) ECO100 – PCE’s 100% renewable energy product
EDR – Economic Development Rate
EE – Energy Efficiency
EEI – Edison Electric Institute; Standard contract to procure energy & RA EIR – Environmental Impact Report
ELCC – Effective Load Carrying Capability
ESP – Electric Service Provider
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ESS – Energy Storage Systems
ESSA – Energy Storage Services Agreement
ERRA – Energy Resource Recovery Account
EV – Electric Vehicle
EVSE – Electric Vehicle Supply Equipment (Charging Station) FERA- Family Electric Rate Assistance Program
FERC – Federal Energy Regulatory Commission
FFS – Franchise Fee Surcharge
GHG – Greenhouse gas
GHG-Free – Greenhouse gas free
GTSR – Green Tariff Shared Renewables
GWh – Gigawatt Hours (Energy) = 1000 MWh
IDER – Integrated Distributed Energy Resources
IOU – Investor-Owned Utility (e.g. PG&E, SCE, SDG&E)
IRP – Integrated Resource Plan
IVR – Interactive Voice Response
ITC – Investment Tax Credit (it’s a solar tax credit)
JCC – Joint Cost Comparison
JPA – Joint Powers Authority
JRC – Joint Rate Comparison
JRM – Joint Rate Mailer
kW – kilowatt (Power)
kWh – Kilowatt-hour (Energy)
LDS – Long Duration Storage
LDES – Long Duration Energy Storage
LIHEAP- Low Income Home Energy Assistance Program
Load Shaping – changing when grid energy is used
LSE – Load Serving Entity
MCE – Marin Clean Energy
Methane Gas - formerly known as ‘natural gas’
Microgrid – building or community energy system
MW – Megawatt (Power) = 1000 kW
MWh – Megawatt-hour (Energy) = 1000 kWh
MUD – Multi-unit Dwelling
NBCs – non-bypassable charges
NEM – Net Energy Metering
NERC – North American Electric Reliability Corporation
NDA – Non-Disclosure Agreement
NG – Natural Gas
OBF – On-bill Financing
OBR – On-bill Repayment
OES – Office of Emergency Services
OIR – Order Instituting Rulemaking
PACE – Property Assessed Clean Energy
PCC – Portfolio Content Category (aka “buckets”) – categories for RPS compliance PCC1 – Portfolio Content Category 1 REC (also called bucket 1 REC) PCC2 – Portfolio Content Category 2 REC (also called bucket 2 REC) PCC3 – Portfolio Content Category 3 REC (also called bucket 3 REC or unbundled REC) PCE - 187
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PCE – Peninsula Clean Energy Authority
PCIA – Power Charge Indifference Adjustment
PCL – Power Content Label
PLA – Project Labor Agreement
POU – Publicly Owned Utility
PPA – Power Purchase Agreement
PPSA – Project Participation Share Agreement (CC Power) PSPS – Public Safety Power Shutoff
PV – Photovoltaics (solar panels)
RA – Resource Adequacy
RE – Renewable Energy
REC – Renewable Energy Credit/Certificate
RICAPS - Regionally Integrated Climate Action Planning Suite RPS – California Renewable Portfolio Standard
SB xx – Senate Bill xx
SCP – Sonoma Clean Power
SJCE – San Jose Clean Energy
SJVAPCD - San Joaquin Valley Air Pollution Control District SMD – Share My Data, interval meter data
SQMD – Settlement Quality Meter Data
SVCE – Silicon Valley Clean Energy
TEF – Transportation Electrification Framework (CPUC Proceeding) TNCs – Transportation Network Companies (ridesharing companies) TOB – Tariff on Bill
TOU RATES – Time of Use Rates
VGI – Vehicle-Grid Integration
V2G – Vehicle-to-Grid
VPP – Virtual Power Plant
WECC – Western Energy Coordinating Council
WREGIS – Western Renewable Energy Generation Information System WSPP – Western Systems Power Pool; standard contract to procure energy and RA PCE - 188
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