Executive Committee Meeting
September 11, 2023
Peninsula Clean Energy
Agenda
• Call to Order / Roll Call
• Public Comment (for items not on the Agenda)
• Action to set the Agenda and Approve Consent Items
o Public Comment
• Regular Agenda
• Committee Members Reports
• Adjourn
Chair Report
Item 1
CEO Report
Item 2
Peninsula Clean Energy
CEO Discussion Items and Announcements
5 • CEO and Vice Chair met with Mayor and City Mgr. in Los Banos on September 6th
• Procurement Subcommittee met on September 6th to discuss RA compliance and budget impacts
• Surplus Fund Committee met on September 8th and will meet again shortly to continue allocation discussions
• Upcoming staff retreat at Costanoa September 20-21
• Legislative Update – AB 1373 (Neutral), SB 537 (sponsoring), Climate Bond, Mike McGuire, Senate Pro Tem designee
Peninsula Clean Energy
Open Positions
Currently posted:
oChief Operating Officer
oChief Financial Officer/Director of Finance
and Administration
o Los Banos Community Relations Associate
Manager/Manager
6 Proposed In-House Customer
Service Center
Executive Committee
Sept. 11, 2023
Peninsula Clean Energy
Agenda
• Context for Customer Service Center
• Problem: Current Customer Support Architecture
• One-Stop Shop Vision
• Peer Agencies
• Proposed Approach
• Budget
• Timeline
| 8
Peninsula Clean Energy
Context: What customers are telling us
• This sparked my interest in switching from gas to electric appliances, but I honestly have no idea how much it would cost, where I'd even begin to research replacing my appliances, or who to reach out to • …it feels like a daunting task to do the research to select the right unit, line up the contractor, schedule the work, submit a rebate application, etc. • Before I start, I wanted to get an estimate for getting a heat pump HVAC for my house. I just want a ballpark estimate, before calling for real estimates. • Having a program that makes us confident that we're getting a good deal on a quality brand and connects us with both the equipment and a trusted local contractor to install it could be what it takes to make us act. | 9
Peninsula Clean Energy
Context: Vision for Residential Services
10 Scale to Whole Home Increase Homes Impacted per Year One-Stop Shop Services Live “Concierge”
Technical Assistance
Turnkey Services
Peninsula Clean Energy
Context: From Transactions to Relationships
Customer-first
• Personal & custom
Data-driven
• Targeted insights
Scalable
• Online marketplaces & tools
11 Peninsula Clean Energy
Problem: Current Customer Support Architecture
12 General Inquiries Key Accts Programs
info@pce programs@pce
programs
team
Residential
Commercial
Support
Partners
Comm
Method
Customer
Class
EV Home
Upgrade
Appliance
Incentives
Home
Solar
Data Transfers
EV
Charging
support@pce 800 line
Acct Services
Sub-contracted
Call center
Peninsula Clean Energy
One-Stop Shop Vision – Customer View
13 One-Stop Website
Contractor network
Info & education
Why, how, rebates, etc.
Appliance marketplace
Energy calculator /
Virtual Energy Audit
One-Stop Phone
Referrals and Service Dispatch
Account Status, Billing, Rates
Program Navigation, Incentives &
Eligibility
Rebate and Services Status
Peninsula Clean Energy
Peer Agencies: Internal Call Center
MCE experience
o Improved service response times (38%)
o Improved customer retention (>20%)
o Increased call volume, esp. Spanish
(>45%)
14 Peninsula Clean Energy
PCE Proposed Approach
• Phased transition – adds program coverage over time
• Possible overflow support from Calpine call center
• Limited new investment in systems
• Continue to use Calpine CRM
15 Peninsula Clean Energy
Initial Budget Estimate
16 New Investment Annual
Staff (manager & 3 representatives) and Systems $550,000 Avoided Costs/Savings
Calpine call center savings $74,000
Phase out current services (GRID) $96,000
Avoided new program-specific call ctr (Turnkey/Concierge) $120,000 Total Savings $290,000
Net Annual Cost $260,000
Peninsula Clean Energy
2023 2024 2025
Timeline
17 Customer
Center
Evaluation
Customer
Center
Setup
Residential Turnkey Services
Residential Storage Program
Development of Turnkey Service
Customer Center Operations
Solar and Storage for Public Buildings
Program (“GovPV”) Round 2
considerations and strategy
Executive Committee
Sept. 11, 2023
| 18
Peninsula Clean Energy
Agenda
• Program Overview and Approach
• Status of Round 1 and Developments
• Broader Strategy
• Status of Round 2
• Considerations in Round 2 and beyond
• Contracting Approaches
| 19
Peninsula Clean Energy
Program Overview
Summary: Accelerate renewable energy at local government facilities Objectives
• Reduce agency energy costs; insulate against rising PG&E rates • Support public agencies in achieving sustainability goals • Help PCE reach its goal of 20 MW of Local Power
Initial Cohorts
• Round 1 (Pilot): 12 sites, 1.7 MW solar, 3 sites w/ follow-on batteries • Round 2: RFP issued, install first half 2024
20 Peninsula Clean Energy
Approach: PCE Services
1. Technical assistance, designs, financial analysis, and project development
2. Procurement process – Reduces customer effort
3. Group purchase with other agencies - Reduces total cost
4. Finance via Power Purchase Agreement - No upfront cost, low cost of capital
5. No profit motive, transparent process – Services are at cost with full visibility 21 Peninsula Clean Energy
Status: Round 1 Installations Begun
22 • Systems to begin coming online
in late Q4 / early Q1
• 1.7 MW across 12 sites
• 3 sites to include batteries, after
solar completed
• Projected customer
savings: $15+ million over life of
systems
San Carlos Youth Center
29.5 kW
Peninsula Clean Energy
Major developments from Round 1 Pilot
• Evaluated multiple financial partnerships
• Vetted access to Investment Tax Credit (ITC)
• Developed new business model for PCE
• Created custom Power Purchase Agreement (PPA)
• Addressed risk management (insurance, liabilities, etc.) • Established operating protocols (billing, maintenance) - in-progress • Generated visibility for PCE
23 Peninsula Clean Energy
Broader Strategy Concept: Model for local renewables
Initial
business
model
Incorporate
battery
systems
Expand to
other
segments
Add
electrification
24 Peninsula Clean Energy
Status: Round 2
• Accelerated due to NEM 2 phase out and transition to Net Billing Tariff • RFP issued Aug 29th
• Included non-member public agencies
• Included non-customer meters: SMCCCD
o Rationale: participation is not subsidized, participation replaces DA load with PCE program, and cultivates relationship with account that may switch to PCE • Round 2 divided into 2 sub-groups
o 2a: 33 sites, solar-only projects immediately economical, 4.5 MW o 2b: 9 sites, solar and storage, up to 12 MW solar and 6 MWh of batteries o B19 and B20 rates - Solar-only not economical
25 Peninsula Clean Energy
Considerations in Round 2 and beyond
• Capital Outlay
o 2a may be approximately $20 million in capital
o Already in budget forecast; recommend same approach as Round 1/ownership o 2b may be $60 million for solar and an additional $8 million or more for batteries o Considerations re: PCE capital vs. more expensive third-party capital vs. bond, etc. o For example, 4% rate results in approximately 50% cost increase over 20 years o Will come back to EC with detail for further direction (Dec/Jan) • Ownership, risk management, contracting model
o PCE ownership allows for better customer economics, grid-serving battery use o Ownership includes more operating requirements and additional risks:
termination/non-payment, legal issues, operational risk such as battery fires o If PCE does not own systems, option exists to facilitate procurement without being party to the long-term contract
26 Peninsula Clean Energy
Contracting Approaches
Direct ownership & finance
• Better economics, battery use
• Risks: long-term operations,
repayment, legal risks
27 Facility
2 Facility
3 Facility
1 PPA 1
EPC
Contractor PPA 2
Construction-only Own Systems PPA 3
Arranges finance
& tax credits
Facility
2 Facility
3 Facility
PPA 1
Developer
PPA 2
Owns Systems PPA 3
Construction and finance
& tax credits
Facility
2 Facility
3 Facility
1 PPA 1
Developer
PPA 2
PPA 3
Initial design & procurement only
“In the Middle”
• Battery use, possible option to
acquire
• Risks: repayment, legal risks
Owns Systems
Construction and finance
& tax credits
Facilitator only
• Lowest risk
• Little/no battery use
PPA 1
Committee Members’ Reports
Item 5
Adjournment