Peninsula Clean Energy
Board of Directors Regular Meeting
July 27, 2023
Peninsula Clean Energy
Agenda
• Call to Order / Roll Call
• Public Comment (for items not on the Agenda)
o Please note, send any chats to Board Clerk, Nelly Wogberg • Action to set the Agenda and Approve Consent Items 1-3 o Consent - Public Comment
• Regular Agenda
• Adjournment
Chair Report (Discussion)
CEO Report (Discussion)
Peninsula Clean Energy
CEO Topics For Tonight
• Cal-CCA Study Session on Rates Forecast and PCIA Update • Staffing and Organizational Updates
• Surplus Funds Ad-hoc Committee
• Commercial Customer Engagement: Summer Heat Event Prep & Demand FlexMarket Rollout
• PCE Brand Audit
• FYI Items
Peninsula Clean Energy
Cal-CCA - PCIA and Rates Forecast Study Session
• Based on latest analysis of PCIA and PG&E generation rates:
o 2023 is an exceptionally good year for revenues due to high energy and capacity prices; PCIA charges were 0 to negative in some cases, which benefited our customers and our balance sheet.
o However, long-term market forecasts show energy prices dropping, leading to less favorable PCIA and PG&E rates in 2024 and beyond o This is consistent with the assumptions in our long-term budget forecast o More clarity on 2024 PCIA/PG&E gen rates will be available in Q4 of 2023 Peninsula Clean Energy
Staffing Updates: Promotions and New Hires
• Connor Prince, Senior Analyst, Account Services (started 7/16) • Jayden Hanan, Account Services Specialist (starting 8/16) • Jaxon Stuher, Power Resources Analyst (starting 9/1)
• Kim Le, from Senior Manager to Director of Data and Technology • Doug Karpa, PhD/JD, from Sr Regulatory Analyst to Managing Counsel, Regulatory Policy • Philip Kobernick from Manager to Senior Manager of Transportation Programs • Matthew Rutherford from Senior Regulatory Analyst to Manager of Regulatory Policy • Alejandra Posada from Associate Programs Manager to Programs Manager Peninsula Clean Energy
PCE Managed Growth & "Planned Redundancy"
8 Peninsula Clean Energy
Currently Posted Positions
Please help us spread the word!
• Chief Operating Officer (recruiter support)
• Chief Financial Officer (recruiter support)
• Senior Program Manager, Local Power Resources
• Energy Programs Analyst
• Regulatory Analyst
https://www.peninsulacleanenergy.com/join-our-team/
Peninsula Clean Energy
Surplus Funds Committee
Committee Members: Rick DeGolia, Donna Colson, Marty Medina, Tygarjas Bigstyck, Paul Llanez, Betsy Nash, Stephen Booker, PCE Staff
10 MEETINGS TIMEFRAME TOPICS/FOCUS
1 July 18 Kick-off; committee purpose, scope, gameplan; guiding principles, PCE background info/staff presentations
2 August 9 Carry over items and staff presentations from meeting 1; Evaluative framework discussion
3/4 Late Aug-Mid Sept
Presentation of various ideas for uses of funds; committee discussion and evaluation (likely 2 meetings)
5 Late
September
Narrow options and develop recommendations
Recommendations October/
November
Executive Committee (October) and Board (November)
Peninsula Clean Energy
Commercial Customer Engagement: Heat Events
11 Peninsula Clean Energy
Commercial Customer Engagement
• Performance-based incentive platform that offers financial incentives to residential and commercial customers for load shaping and fuel switching.
• Focused on building electrification and energy efficiency (EE); compensates customers that complete certain EE and electrification measures demonstrating measurable load modification and reduction. • Roll out to commercial customers is happening now.
Peninsula Clean Energy Brand Assessment
Peninsula Clean Energy Launch
Early branding was approachable, friendly,
non-threatening.
2016
Updates to Look and Feel
We transitioned to a more professional,
modern, clear, upbeat and clean look, as a
trusted advisor delivering electrification
programs.
2020
Brand Strategy Assessment
Assess and evaluate the brand in the
context of internal and external changes,
e.g. organizational growth and how to best
serve our customers
2023
Brand
Assessment
Phase 1:
Brand Audit
& Positioning
Exploration
The Organization
Examine where we've
been and where we
want to go.
Customer Insights
Who are our
customers and what
are their interests and
motivations?
Market Context
Electricity market
context and a review
of similar entities
Culture
What are the relevant
trends?
2018
Peninsula Clean Energy
August Meetings
• Citizens Advisory Committee:
o Thursday, August 10 at 6:30 p.m.
• Audit and Finance Committee:
o Monday, August 14 at 8:30 a.m.
• Executive Committee:
o Monday, August 14 at 10:00 a.m.
• Board of Directors:
o Thursday, August 24 at 6:30 p.m.
Peninsula Clean Energy
And Finally...
• Friday morning office hours with the CEO; sign-up link in the weekly Board newsletter
• Board Survey due tomorrow. Check your inbox and please reply! 15 CAC Report
Review of 2022-23 Citizens Advisory
Committee Work Plan Deliverables
(Discussion)
July 27, 2023
Peninsula Clean Energy
2022-23 CAC Work Plan
In summer 2022, the Board of Directors approved an
annual work plan for the Citizens Advisory Committee
• Included forming ad hoc working groups to collaborate with PCE staff on specific projects
• Each working group wrote a brief memo as deliverable
• Memos included in this agenda packet
18 Peninsula Clean Energy
Working Group Result Highlights
Building Electrification Education: Informed community networks about reach codes
Home Upgrade Program: Gave feedback on early program
implementation
Demand-Side Strategies for 24/7 Grid Decarbonization: Gave feedback on potential strategies for load shifting
Education Initiatives: Brainstormed ways to serve students and schools in Los Banos
19 Peninsula Clean Energy
Working Group on Function of CACs
Conducted two surveys:
1. Staff liaisons for advisory committees at other CACs
2. Advisory committee members at other CACs
Low participation in surveys, but we did see some trends:
• Challenge of finding the best ways to engage volunteer talents • Solution: working groups with well-defined tasks to channel expertise • Some tension between the priorities of staff and CAC members • Community outreach is an important and useful role
• Best practice: send meeting materials ahead of time
20 Approval of 2023-24 Citizens Advisory
Committee Work Plan, Objectives, and
New Committee Name (Action)
July 27, 2023
Peninsula Clean Energy
Proposed CAC Name Change
• The Citizens Advisory Committee (CAC)
recommended changing its name to the
“Community Advisory Committee”
• Intended to increase inclusivity
oUnited States citizenship is not a
requirement of service
23 New and reappointed CAC
members take the Oath of Office
Peninsula Clean Energy
Proposed Update to CAC Role and Responsibilities
• Advise on substantial public-facing program initiatives before they are presented to the Board for approval, as practical given staff and CAC capacity. • Engage in outreach to the community and advocate for Peninsula Clean Energy mission, goals, and programs.
• Advise on high-level legislative and regulatory direction of the organization • Provide a forum for community discussions on a wide variety of strategies to reduce carbon emissions in conjunction with staff and board. • Form working groups, as recommended by the CAC membership, to assist Peninsula Clean Energy’s staff and Board with projects of importance to the organization.
Peninsula Clean Energy
CAC Work Plan Development
• Ad hoc working groups focus on specific projects with PCE staff • 2023 working group projects suggested by staff and CAC members Work Plan Guiding Principles
• Ensure PCE Staff and Board understand how to leverage CAC in a way that is useful and drives PCE strategic priorities
• Ensure CAC members feel fully engaged and utilized if they have interest and bandwidth
• Maximize efficiency of CAC impact on staff resources
Peninsula Clean Energy
Proposed 2023 CAC Working Groups
Project Proposed Task Description and Deliverables Staff Liaison Building
Electrification
Programs
Provide input on the next iteration of Peninsula Clean
Energy’s building electrification programs and strategy.
Deliverable: Brief memo summarizing input provided by CAC members regarding building electrification programs and strategy between June 2023 and April 2024. Delivered to staff prior to the April 2024 CAC meeting.
Rafael Reyes,
Programs Team
Electric Vehicle
(EV) Managed
Charging
Program
Develop ideas for scaling Peninsula Clean Energy’s EV
managed charging program, including recommendations for program design and recruitment strategy.
Deliverable: Brief memo summarizing input on the EV
managed charging program between June 2023 and April
2024. Delivered to staff prior to the April 2024 CAC meeting.
Phillip Kobernick,
Programs Team
Peninsula Clean Energy
Proposed 2023 CAC Working Groups (continued)
Project Proposed Task Description and Deliverables Staff Liaison Local Solar +
Storage
Programs
Conduct research on successful residential solar + storage and virtual power plant programs in the United States,
including:
• Summary of program equity metrics (especially low-income customer participation), program benefits, potential challenges, and applicability for Peninsula Clean Energy’s customers
• Recommendations on additional areas of research
required to vet a scalable solar + storage program
Deliverable: Brief memo summarizing research conducted
between June 2023 and April 2024. Delivered to staff prior to the April 2024 CAC meeting.
Peter Levitt,
Programs Team
Peninsula Clean Energy
Proposed 2023 CAC Working Groups (continued)
Project Proposed Task Description and Deliverables Staff Liaison Education
Initiatives
Provide input on initiatives to expand clean energy curriculum and decarbonization projects in schools, especially in the City of Los Banos.
Deliverable: Brief memo summarizing input on education
initiatives provided between June 2023 and April 2024.
Delivered to staff prior to the April 2024 CAC meeting.
Vanessa Shin,
Marketing Team
Diversity,
Equity,
Accessibility,
and Inclusion
(DEAI)
Provide occasional feedback to staff on development of new organizational guidelines to implement the DEAI Action Plan.
Deliverable: Brief memo summarizing input on DEAI Action Plan implementation provided between June 2023 and April 2024. Delivered to staff prior to the April 2024 CAC meeting.
Kirsten Andrews-Schwind,
Marketing Team
Approval of Proposed School Partnership
with the San Mateo County Office of
Education (SMCOE) (Action)
July 27, 2023
Peninsula Clean Energy
Schools Engagement Goals in PCE Strategic Plan
Continue to support schools-based literacy programs focused on energy
1. Work with San Mateo County Office of Education, San Mateo County Community College District and Los Banos schools to identify and support opportunities to educate students, teachers and administrators about energy-related environmental impact in order to inspire action
2. Sponsor awards that recognize student and schools-based achievements in energy and the environment
Peninsula Clean Energy 31
Problem 1: To achieve our goals, we need to educate all students about clean energy and related careers.
Train educators on
energy literacy
curriculum
Use school districts
as living labs
Raise awareness of
clean energy careers
among students &
educators
Coordinate Teacher
Fellowship & Workshops to
Introduce Clean Energy
Concepts and Curriculum
Provide Curriculum, Training,
and Field Trip Funding to
Teach About Clean Energy
Careers
Support Electrification
of School Districts and
Related Curriculum
Green Career Awareness
Peninsula Clean Energy 32
Problem 2: Districts are not taking advantage of the
funding & resources available for school decarbonization Build staff capacity
& expertise around
decarbonization
of facilities
Foster school
champions and
inspire leadership
Understand current
needs and track
progress towards
goals
Support Updates of Facilities
Master Plans to Include
Decarbonization
Collect Baseline Data
Related to Electrification
from School Districts;
Track Progress Through
Energy Dashboards
Convene Administrators &
Youth at Decarbonization
Summits; Recognize School
Districts for Decarbonization
Projects
Peninsula Clean Energy
Green Career Awareness Program – Already Funded
• Expand education on clean energy
careers to 7-12th grade students
• Led by SMC Office of Education,
Career Technical Education (CTE)
• $190,000 in funding from 2023-25:
oMiddle school clean energy curriculum
oClean energy field trips
33 Peninsula Clean Energy
Teacher Fellowship & Workshops
• Make it easier for K-12 teachers to deliver
energy curriculum
oYear-long Teacher Fellowship; OR
o 2-hour workshops with windmill kits
• PCE to collaborate on curriculum content
and present directly to participants
Peninsula Clean Energy
School Facility Decarbonization Program
Provide capacity and technical expertise
to help school districts decarbonize
• Collect baseline data on district
buildings, fleets, etc.
• Connect districts with available funding
•Identify equipment upgrades
Peninsula Clean Energy
FY23-24 Schools Budget Proposal
Status Program Budget
Current
Request
SMCOE School Decarbonization Program $120,000.00
Energy Teacher Fellowship & Lesson Plan Workshops $ 32,500.00 Decarbonization Summits & Awards $ 7,500.00
School Facilities Dashboard Support $ 12,000.00
Indirect Expenses $ 24,733.60
Contingency Funds $ 8,267.00
SMCOE Total $205,000.00
Committed SMCOE Green Careers Awareness Program $ 65,000.00 Budgeted
BCEC Youth Climate Ambassadors $ 87,500.00
SMCCCD Museum of Tomorrow Fellow & Interns $128,250.00
TBD Los Banos School Programs Placeholder $ 50,000.00
Total $535,750.00
Peninsula Clean Energy
Recommendation
Adopt a resolution to delegate
authority to the Chief Executive
Officer to finalize and execute a
contract with the San Mateo
County Office of Education for
an amount not to exceed
$205,000 in 2023-24
37 Electricity Grid
Regionalization and AB 538
(Continued from June 26, 2023
BOD Meeting)
July 27, 2023
Peninsula Clean Energy
Summary • The California Legislature is considering
a bill that would enable the State’s grid
operator (CAISO) to expand to other
states
• This is a significant policy question that
the State has previously considered
• Key stakeholders are split on how the
State should approach this issue
• Staff is seeking feedback from the
Board on how PCE should approach
this issue
39 Peninsula Clean Energy
The U.S. Power Grid and California
• The U.S. power grid consists of the
bulk power system, high-voltage
transmission equipment, and the
lower-voltage distribution system.
• It is broken into 3 independent grids.
o The Western Interconnect, which
includes 38 separate balancing
authorities, including CAISO.
o The Eastern Interconnect, which
includes 36 balancing authorities
o The Electric Reliability Council of Texas
(ERCOT)
• The Western Interconnect is
overseen by the Western Electric
Coordinating Council (WECC)
40 1. https://www.tanc.us/understanding-transmission/the-western-us-power-system/ Peninsula Clean Energy
Electric System Operations • The actual operations of the electric system are managed by balancing
authorities (BA), which manage the
supply and demand of energy across their
territory, and transfer of electricity with
other BAs.
• There are 38 BAs within the WECC,
representing about 20% of all generation
capacity in the U.S. and Canada.
• BAs are regulated by both the Federal
Energy Regulatory Commission (FERC)
and the North American Electric
Reliability Corporation (NERC).Operations
41 Peninsula Clean Energy
CAISO Today
42 • Overview: The CAISO is both a BA and regional transmission operator that manages the flow of electricity across the high-voltage bulk power system that makes up 80% of California’s and a small part of Nevada’s electric grid.
• Governance: CAISO is regulated by both the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC). o Unlike other RTOs, the CAISO’s 5-person governing board is appointed by the California Governor and confirmed by the Senate
• Interstate Markets: CAISO operates 2 markets that involve multiple states and participants:
o WEIM: The Western Energy Imbalance Market (WEIM), a real-time bulk power trading market that involves 19 voluntary participants (and more coming) across 10 western states o EDAM: Building on the success of WEIM, the extended day-ahead market (EDAM) is a voluntary day-ahead electricity market that CAISO will launch in early 2024 • Both market programs are designed to deliver economic, environmental, and reliability benefits to participants by increasing regional coordination
Peninsula Clean Energy
The Need to Revisit Regionalization
• California has set ambitious climate goals to
reach 100% clean energy by 2045. CPUC’s
integrated resource planning analysis shows that
the grid would need an additional 86 GWs, more
than double what is currently on the grid.
• California needs to import electricity to meet its
Resource Adequacy requirements, and to meet
the demand of extreme summer heat events
• There are doubts as to whether California can
build the new 86 GW of resources it needs fast
enough inside California to both meet climate
goals and reliability needs if the supply of imports
begins to decline.
43 Peninsula Clean Energy
The Need to Revisit Regionalization, continued
• An existing RTO, the Southwest Power Pool (SPP), is asking Western States to join their new market, called Markets+, similar to CAISO’s WEIM and EDAM. Unlike WEIM and EDAM, Markets+ will be operated by a governance board that is not appointed by a specific state or participant. • Many WEIM participants have already made commitments to leave WEIM for Markets+, jeopardizing resources available to WEIM and CAISO.
• Supporters of regionalization have raised concerns that if California doesn’t expand to an RTO, resources across Western states will become less and less available to California.
Peninsula Clean Energy
How Could Regionalization Be Structured?
Peninsula Clean Energy
Arguments in Support of Regionalization
46 • Improved reliability: Better coordination on Resource Adequacy by pooling generation resources across a larger region
• Accelerated decarbonization: Easier to match variable demand and renewable generation across the region; less curtailment of wind and solar resources • Improved transmission planning: Streamlining the process of long-term resource planning
• Cost reduction: Reduce transmission congestion costs, streamlining the cost of RA/operating reserve to maintain reliability, more efficient use of renewables are estimated to save $379 Million to $574 million annually for California electricity customers, approx. 4.5% of total annual costs
Peninsula Clean Energy
Key Supporters
47 Environmental
• NRDC
• Environmental Defense Fund
• California Environmental Voters
(formally CLCV)
• Ceres
Business
• CalChamber
• CA Manufacturing & Technology
Association
• CA Community Economic
Development Association
• Microsoft
• San Jose Chamber of
Commerce
• Silicon Valley Leadership Group
Energy
• CAISO
• American Clean Power
• Apex Clean Energy
• CA Energy Storage Association
• EDF Renewable Energy
• Engie North America
• Independent Energy Producers
• MCE
• Pattern Energy
• Southern California Edison
• Solar Energy Industry
Association
• CA Wind Energy Association
Peninsula Clean Energy
Arguments Against Regionalization
48 • Loss of state control: A regional board of directors will likely be less accountable to California ratepayers and California’s environmental and energy policy goals. California will likely only have one vote whereas California’s load is much larger than other Western states
• Federal oversight: FERC may have greater oversight over California policies that express preferences for renewable or carbon-free resources and is more subject to national politics and policies
• Job Creation: More projects may be built outside of California and California LSEs may purchase more of those resources
• State-level decarbonization: While more states have adopted renewable/carbon-free electricity goals, fossil fuel resources will still be more abundant across the west and therefore may be imported into California more easily
Peninsula Clean Energy
Key Opponents
49 Environmental
• Sierra Club
• Clean Coalition
• Food and Water Watch
• The Climate Center
• CA Alliance for Community
Energy
• CA Climate Voters
• CFROG
• Climate Reality Project
Ventura County
• Various 350 chapters
• All indivisible chapters
Labor
• California Labor Federation
• Coalition of California Utility
Employees
• CA State Association of
Electrical Workers
• CA State Council of Laborers
• CA State Pipe Trades Council
Ratepayer/Other
• Consumer Watchdog
• CMUA
• TURN
Peninsula Clean Energy
• Introduced by Asm. Holden, it is possibly a 2-year bill • CAISO develops and submits a governance proposal to the CEC to meet specific governance requirements (next slide)
• CEC, in consultation with CPUC and CARB, reviews the governance proposal and holds at least 5 public hearings (plus additional verification between agencies) • Legislature reviews and provides feedback on the structure • CAISO implements a governance structure, if there is intention from non-participating transmission owners to join and the FERC has approved any changes to CAISO tariff that are necessary. Open to transmission owners, retails sellers, POUs • Additional checks and balances to ensure compliance with FERC requirements, CEC, CAISO, and the Secretary of State
AB 538: Regionalization Process
50 Enable the transition of the CAISO to a regional transmission operator with independent governance. Process:
Peninsula Clean Energy
• Governance by a western states’ committee with an equal number of representatives from each state. California rep is appointed by Governor and confirmed by Senate • Open meeting standards consistent with Bagley-Keene Act plus public access to records • Maintaining state authority over state matters related to procurement policy, resource planning, and resource or transmission siting within the state, including setting resource adequacy standards, and prohibiting the operation of a centralized capacity market • Ensuring the dispatch of resources appropriately reflects the costs for resources to comply with California’s climate policies
• Establishing a clear structure for state regulators to provide guidance to the organization • Enabling participation of demand response, storage, and distributed energy resources • Maintaining California’s renewable portfolio standard compliance requirements that favor in-state renewable energy development over out-of-state development AB 538: Regionalization Process
51 Governance requirements include:
Questions and Discussion
Adjournment
Peninsula Clean Energy