Executive Committee Meeting
February 12, 2024
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 Item 1
o Public Comment
• Regular Agenda
• Committee Members Reports
• Adjourn
Chair Report
CEO Report
Peninsula Clean Energy
CEO Report
• Audit and Finance Report Out
• Rate Freeze - Feedback and Communications
• Minutes - Backlog and Shift to Action Minutes
• Upcoming:
o Policy 16 Board and Committee Amendments; JPA Agreement Clean Up o Cal-CCA Lobby Day and New Legislator CCA Training
o CEO/Council Briefings
- February 15 – Brisbane April 1 - Burlingame
- March 6 – Los Banos April 23 – San Bruno
- March 11 – Hillsborough May 13 – San Carlos
May 15 - Atherton
5 Single-Family Turnkey
Electrification Installation
Service
Executive Committee
February 12, 2024
Presentation Overview
Context
Current Building Electrification Efforts
New Building Electrification Efforts
Turnkey Installation Service
7 Context
8 2035 DECARBONIZATION ANALYSIS
RESULTS REFRESHER
Programs Portfolio
9 2035: Buildings Electrification
• 2035 Decarbonization Feasibility Assessment
and Plan shows we need to rapidly scale
building electrification.
• PCE is best positioned to affect change in small
residential sector.
• Following program components needed to
succeed:
1. Flexible Incentives
2. High touch support
3. Links to Finance
10 Current Building
Electrification
11 2035 DECARBONIZATION ANALYSIS
RESULTS REFRESHER
12 What We Have
Rebates for heat pump water
heaters & heat pump HVAC
0% loans up to $10k for heat
pump water heaters & heat pump
HVAC
Home Upgrade program: no-cost
electrification & minor home repairs for
income-qualified homeowners
Participants Count
Rebate & loan program 1,862
Home Upgrade program 281
Appliances installed (all
programs)
Count
Heat pump water heater 1,114
Heat pump HVAC 1,096
Induction cooktop/range 75
Electric dryer 73
What We Still Need
• Current program provides incentives but minimal guidance/support • Updated services needs to address barriers customers face:
o Emergency replacements
o Lack of clear information
o Difficulty selecting contractors and equipment
o Limited time and money
o Technically complicated installations
Future Building
Electrification
14 2035 DECARBONIZATION ANALYSIS
RESULTS REFRESHER
Peninsula Clean Energy
Vision Building Electrification v2
15 Scale to Whole Home Increase Homes Impacted per Year One-Stop Shop Services Concierge Services Turnkey Installation Services 2023 2024 2025
Building Electrification v2: Timeline
16 RFP & Contracting Income-Qualified Install Service
In-house Contact Center
Exploration (Tentative)
Develop one-stop shop website v1 One-stop shop website v2 One-stop shop website v3 Market-Rate Install Service
In-house Contact Center
Operations (Tentative)
Concierge Hiring &
Development
Concierge
Operations
Emergency Replacement Service
Turnkey Installation Service
Service Overview & Contract
17 2035 DECARBONIZATION ANALYSIS
RESULTS REFRESHER
RFP For Turnkey Installation Services
Select experienced consultant + installation contractors team to implement three suites of installation services:
18 Income-Qualified
No-Cost Electrification
Market-Rate
Low-Cost Electrification
Emergency
Water Heater Replacements
No-cost whole-home
electrification for low-income residents
(Home Upgrade v2)
Low-cost installation
services to non-income-qualified
residents
(NEW)
Rapid replacement of
failing gas water
heaters with heat
pump water heaters
(NEW)
RFP Detail
Process
• Joint RFP with SVCE; they intend launch the same
services
• Released in August, proposals due October, selection
in December
Results
• Received 5 proposals
• 2 shortlisted for interviews & follow up questions
• Selected Franklin Energy as the awardee
19 About Franklin Energy and Team
• Franklin Energy
o Large (~1,000 employees) nation-guide energy consulting firm, very active in CA o Experience in with electrification and energy efficiency, and working in San Mateo County • Contractors
o Enso: works on MCE program with Franklin. Will focus on income-qualified installs. o Fuse Service: large Bay Area contractor experienced in electrification. Will focus on market-rate installs & emergency replacements. o Electrify My Home: electrification-focused contractor. Will focus on market-rate installs. • Others
o Xerohome: energy modeling software to help develop home scopes and target customers 20 Peninsula Clean Energy
Average Electrification Costs Per Home
21 Measure Cost
Heat pump water heater (65 gallon, 240V) $6,350
Heat pump HVAC (ducted, inverter-driven, 2 ton) $12,300 Electric induction range $2,450
Electric clothes dryer $2,000
Level 1 EV-ready circuit $1,200
4 Circuits $4,800
Sub-panel $1,600
Permits & HERs test $1,000
Total $31,700
Panel replacement, if required $6,850
• Program will pay prevailing wage.
• Contract contains detailed measures table with costs, i.e. multiple configurations for water heaters, HVAC, etc. • Some income-qualified homes will also receive minor home repairs, light energy efficiency & resiliency measures.
Average cost per whole-home electrification for a typical home, per Franklin contracting pricing Peninsula Clean Energy
Contract Overview
22 • Counts for income-qualified assume all homes are fully electrified; count is likely to be greater. • Actual expenditures will be based on program uptake; market-rate and emergency water heaters are especially variable. • Implementation costs refer to all non-installation costs including customer support, contractor oversight, site assessments, admin and reporting tasks. Some costs will be shared with SVCE.
• Menlo Park budget will be entirely allocated to income-qualified installs (and associated implementation costs).
FY23-24 FY24-25 FY25-26 FY26-27 3-Yr Total
Income-Qualified Installs
Count 15 150 180 180 525
Budget $530,000 $5,300,000 $6,700,000 $7,030,000 $19,290,000 Market-Rate Installs Count 0 30 45 100 175
Budget $185,000 $260,000 $615,000 $1,300,000
Emergency Water Heater
Installs
Count 0 20 40 67 127
Budget $60,000 $120,000 $190,000 $400,000
Implementation Costs Budget $190,000 $685,000 $955,000 $1,180,000 $3,010,000 Total PCE Budget $720,000 $6,230,000 $8,035,000 $9,015,000 $24,000,000 Total Menlo Park Budget $200,000 $1,800,000 N/A N/A $2,000,000 Total Contract Not To
Exceed Amount $26,000,000
Thank you!
Questions?
| 23
Update on In-House
Contact Center
Executive Committee
February 12, 2024
Peninsula Clean Energy
Context: Vision for Residential Services
33 Scale to Whole Home Increase Homes Impacted per Year One-Stop Shop Services Live “Concierge”
Technical Assistance
Turnkey Services
Peninsula Clean Energy
Problem: Current Customer Support Architecture
34 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
35 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
Customer Centricity and DEAI
• Many of our customers have been telling us that they need a higher level of support from PCE to confidently take the next steps to invest in decarbonization and electrification
• Meeting customers where they are at in their journey is a critical piece to making sure our programs and benefits are accessible to all. • Doing the research and making the investment into building out robust frontline customer contact experience is an important step in PCE’s journey towards Customer Centricity
36 Peninsula Clean Energy
Next Steps
Timeframe: March-May 2024
• Working with external consultants/staff to do a deep dive into existing customer systems
o Calpine IVR, CRM
o Powerpath
• Identify gaps/necessary technology solutions to bridge existing platforms with new offerings
• Develop budget and staffing plan to bring back to the full Board later this Spring
37 Community Advisory
Committee Recruitment
Options
Kirsten Andrews-Schwind
Peninsula Clean Energy
Roles of the Community Advisory Committee
• Advise on substantial public-facing program initiatives before they are presented to the Board for approval, as practical given timeliness and 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 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. | 39
Peninsula Clean Energy
Current New Member Selection Process
February
o Board of Directors forms an Ad Hoc Committee for CAC recruitment. Committee reviews application. o Staff posts and advertises application form online.
o Open application period usually runs through the end of March.
April-May
o Staff screens applicants for conflicts of interest.
o Staff schedules times for the Ad Hoc Committee to interview applicants and supports the interview process. o Staff and Board Committee interviews all candidates.
o Ad Hoc Committee decides which candidates to recommend for appointment. o Ad Hoc Committee makes recommendations to full Board of Directors at the May meeting, Board approves or amends.
June
o New CAC members are offered an orientation and sworn in for 3-year terms. o All other applicants are informed that they were not appointed.
Mid-term vacancies on the CAC were usually left open until annual appointments were made in May. | 40 Peninsula Clean Energy
Increased Demand for CAC Openings
Average openings:
2-5/year
In 2023 we turned
down 17 good,
motivated candidates
Number of Applicants
2021 6
2022 13
2023 22
41 Peninsula Clean Energy
Challenges
• Increased staff and Board time to review applications and interview many candidates
• We have to turn away most applicants, many of them qualified! oNot a great customer experience
42 Peninsula Clean Energy
Reasons to Revise Approach
Creating a pipeline of qualified candidates will allow us to:
oReduce time burden on staff and Board members
oProvide a better experience for CAC applicants
oFill CAC vacancies with qualified candidates more quickly 43 Peninsula Clean Energy
Recommendations
1. Revisit the large 2023 pool of qualified CAC applicants to fill vacancies in 2024 instead of opening up another full recruitment cycle.
2. Rank and maintain a list of top runner-up applicants so that they may be appointed, if still interested and available, as vacancies open on the CAC.
3. Run a full recruitment cycle every 2-3 years instead of annually.
This will allow PCE to form a pipeline of qualified candidates and will allow candidates who may not have been selected in one round to still be considered in another.
44 Adjournment