Executive Committee Meeting
October 16, 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
Solar Billing Plan (SBP)
(Previously Net Billing Tariff (NBT))
Leslie Brown
Executive Committee
October 16th, 2023
Peninsula Clean Energy
What is Solar Billing Plan?
• New solar interconnection policy for all new interconnection applications after April 15, 2023.
o PG&E is currently scheduled to begin billing customers on the Solar Billing Plan (SBP) on December 15th, 2023.
• Per the California Public Utilities Commission(CPUC), the new policy changes are intended to:
o Credit excess solar generation at its grid value (vs retail prices). o Charge SBP customers for grid electricity based on high differential Time Of Use (TOU) tariffs and encourage solar + battery storage installations. o Discourage mid-day solar exports to the grid and encourage shifting exports to later in the day with battery storage to help curb demand during On Peak hours (4pm-9pm). 4 Peninsula Clean Energy
PCE SBP Policy
• Primary Billing: PCE’s proposed Solar Billing Plan will closely model PG&E’s SBP tariff.
o Customers will be charged for consumption at the standard retail rates for their applicable rate schedule and credited at the Energy Export Credit (EEC) rate.
• The Export Credit Rates are determined through a public proceeding managed by the CPUC using the Avoided Cost Calculator.
o Energy Export Credit rates vary by the hour and day throughout the year.
Credit values for solar systems connected by 2027 will be predetermined and set for nine years. Credit values for systems connected after 2027 will updated every two years to reflect the most current energy prices. 5 *Export Credit Rate Information from PG&E
Peninsula Clean Energy
Example Monthly Energy Export Credit Table
6 Peninsula Clean Energy
Annual Cash Out on SBP
• SBP customers will follow the Annual Cash Out timeline that occurs after each April billing cycle, similar to NEM customers. o The Annual Cash Out for SBP customers will be calculated under the Net Surplus Compensation (NSC) model, as mentioned previously they will be credited at the EEC rate monthly rather than retail.
o Cash out amounts will be calculated based off the net kWh quantity at the end of their 12-month period and PG&E NSC rate. PCE will include an additional $0.01 per kWh adder to the PG&E NSC rate.
o Customers with NSC credit amounts in excess of $300 will be issued a check and amounts under $300 will be applied as an on-bill credit. 7 Peninsula Clean Energy
Alterations from PG&E SBP
• The Export Credit Reversal “clawback” charge will not be assessed to PCE customers at the time of their annual cash out.
o Since the customer is being credited monthly at the EEC rate, the customer is already losing value compared to the retail credits provided under the NEM tariff.
o Adding the NSC cash out payment on top of monthly EEC credits increases value of excess generation for customers, while still falling below the retail rate earned on the NEM tariff.
8 Peninsula Clean Energy
PCE Policy Considerations
• PCE will benefit from an observational approach, as only ~1% of our NEM customers will transition to SBP in it’s first year. o EEC values will still apply to T&D exports regardless of CCA Generation export rates, so any variance in PCE credit rates could create a confusion. o Analyzing the first year of billing on this tariff will provide a better assessment of its success and how programmatic incentives and/or export credit adders can be most impactful.
9 Executive Committee
October 16, 2023
Distributed Energy Resource
Framework and Future
Programs
Peninsula Clean Energy
Agenda
1. DERs in PCE Programs
2. Definition of Distributed Energy Resources & Objectives
3. Scale Comparisons
4. Virtual Power Plants (VPP)
5. Outages
6. PCE’s Portfolio & Next Steps
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Context: Distributed Energy
Resources Framework
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Peninsula Clean Energy
Programs Overview
13 New!
EV Managed Charging
(Res)
Peninsula Clean Energy
Definition
Distributed Energy Resources (DERs) are assets on
the distribution grid, typically close to load, and usually behind the meter, which can be used individually or in
aggregate to provide value to the grid and individual
customers.
Peninsula Clean Energy
PCE DER Objectives
• Provide grid benefits, especially peak shaving to reduce wholesale costs and carbon intensity, aiding further penetration of renewables • Provide resilience
• Lower operating costs for customers
• Make electrification more economically beneficial
• Deepen PCE-customer relationships and foster retention • Reduce PCE costs and support self-sufficient business model 15 Peninsula Clean Energy
Grid of the Future
16 Peninsula Clean Energy
Scale Comparison: Typical Residential
17 Capacity/day: 13 kWh
Shift potential/day: 9 kWh*
Deployed: 3,600+
Capacity/day: 7 kWh**
Shift potential/day: 7 kWh
Deployed: 45,000+
Capacity/day (HPWH): 0.45 kWh***
Shift potential/day: 0.225 kWh
Deployed: 1,300+
* 30% reserve
** 25 miles/day / 3.5 mi/kWh
*** 240V HPWH, more potential with HVAC if actively heating or cooling Peninsula Clean Energy
Commercial Scale Systems
• GovPV program – scoped battery sizes
o GovPV1: 200-400 kWh
o GovPV2: up to 4.5 MWh
• Microgrid: Arcata Airport and US Coast Guard Station in Humboldt Co. o 2.2 MW PV array DC-coupled to 2.2 MW/8.8 MWh battery storage o CAISO wholesale market participation
o $11M in ~2021
18 Virtual Power Plants
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Peninsula Clean Energy
Virtual Power Plant (VPP): Definition
Network of distributed energy resources
dispatchable for grid services
20 Peninsula Clean Energy
DER VPP Supply Chain (BTM)
Rates
Market-based, contractual, direct control
Ex: Sunrun or PCE
Asset
Control
mechanism
Manager
Programs
Rates & Costs
Value capture pathways Ex: CPUC or Wholesale market
Ex: Direct or
Behavioral
Outages
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Peninsula Clean Energy
Outage classes • Extreme heat > extreme
demand or fire o Generation or transmission o Local distribution o Rolling blackouts • Extreme heat > preventative
shutoff (PSPS)
• High wind accidents • Site failures • Planned maintenance 23 Peninsula Clean Energy
Preliminary Outage Findings – 2021 & 2022 in SMC
• Total outages: 6,210
o Accounts: 76% outage events < 100; 10% > 900 accounts o Duration: 22% < 1 hr; 62% < 5 hrs; 4% > 1 day
• 50% of outages are unplanned (locations & times vary widely) • Hotspots circuits in Belmont, Daly City, HMB, Menlo Pk, Woodside 24 Class Typical Customer Impact Possible Resolution
Low/None No outages or very short None required
Medium One 5-hour outage* Site level
High (Hotspot) Frequent &/or long duration Distribution level (and possibly site level)
*Not all customers were affected. An outage on a circuit does not mean all customers on the circuit are affected
Peninsula Clean Energy
Resilience Tactics (PCE could deliver)
• Grid support: VPPs/RA/Local Generation
• Microgrid – circuit/neighborhood(?)
• Microgrid – campus
• Commercial site battery (& generators)
• Residential site battery
• End use storage
25 PCE’s Portfolio & Next
Steps
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Peninsula Clean Energy
Programs Overview
27 New!
EV Managed Charging
(Res)
Peninsula Clean Energy
DER Next Steps
1. Execute on GovPV including adding storage
2. Develop new residential solar and storage program
3. Scaling EV managed charging and FLEXmarket
4. Develop end use storage approach
28 Adjournment