Peninsula Clean Energy
Board of Directors Regular Meeting
March 28, 2024
The meeting will begin shortly. Thank you!
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 1-5 o Consent - Public Comment
• Regular Agenda
• Adjournment
Chair Report (Discussion)
CEO Report (Discussion)
Peninsula Clean Energy
CEO Report
5 Programs Update
Ø CA Department of Housing and Community Development EV L1 Code Amendment Request
Ø SVCE Partnership on Turnkey Electrification Services
Regulatory Update
Ø Disadvantaged Community Green Tariff (DAC-GT) Program Expansion Ø CPUC Proposed Decision on Financial Security Requirement Peninsula Clean Energy
CEO Report: EPA Green Power Program Update
• Voluntary Environmental Protection Agency (EPA) Program • Participating cities get a sign and access to certain information resources • Peninsula Clean Energy has submitted annual reports on behalf of our member cities to EPA since 2018
• Due to recent eligibility update from EPA, most PCE cities are ineligible to remain in the program, or will be ineligible in the near future
• Criteria has become more stringent; requires shift to ECO100 and purchase of Carbon Allowances
• Peninsula Clean Energy will be ending participation in this program starting this year and is considering a program in its place
• Email will be sent to city sustainability staff, city manager, and corresponding Board member in the next week
| 6
Peninsula Clean Energy
CEO Report: PCE Federal Strategy
Purpose
• Boost PCE/CCA Awareness, Participate in /Influence Federal Energy Issues, Diversify Revenues to Help Scale Programs, Deepen DOE and Legislator Relationships
PCE Request
• Community Project Request for $2M to support ~ 200 additional low income home upgrades
DC Lobby Days
• March 20-21 with the Cal-CCA coalition was a success! | 7
Peninsula Clean Energy
CEO Report: Event Invitations
• CalCCAAnnual Conference – April 16-18 in San Jose
o 9 Board Members attending the conference this year
o Elected Officials and CCA Governing Board Members Luncheon on Thursday, April 18, at noon.
o Option to attend only the luncheon – in San Jose
• Sustainable San Mateo County’s Sustainability Awards Celebration o Wednesday, April 10, from 5:30 to 8:30 p.m.
o Three comp tickets available
Let Nelly know if you are interested in joining either event 8 Peninsula Clean Energy
CEO Report: Upcoming
Upcoming Board Topics
- Power Resources Discussions (March/April)
- Pre-Pay Bond Opportunity (April)
- JPA Amendments/Policy 16 (May/June)
- Customer Service Center (May)
- Budget Season (March – June)
- Set Rates for Q3/Q4 2024 (June)
- New Strategic Plan (kick off in
late summer/fall 2024)
- May consider cancelling July meeting (tbd)
9 Brisbane February 15
Los Banos March 6
Hillsborough March 11
Burlingame April 1
Pacifica April 8
San Bruno April 23
Menlo Park May 7
Atherton May 15
San Carlos May 28
East Palo Alto June 4
Foster City July 15
South San Francisco – August 14
County of San Mateo August 27
Millbrae September 10
Portola Valley September 25
Member Agency Briefings
Peninsula Clean Energy
Staffing Update
Welcome!
• Jana Kopyciok-Lande, Associate Director, Innovation and Strategy - March 1 • Ross Fisher our Associate Manager, DER Programs - March 18 • Lilly Meek our Community Outreach Specialist - March 18 • KellyLew-Quintal, Risk Manager - April 16
10 Peninsula Clean Energy
Currently Posted Positions
Please help us spread the word!
• Analyst/Senior Analyst, Building Electrification Support • Senior Manager, Strategic Analysis and Rates
• Internships:
o Summer Intern, Building Decarb Analytics
o Summer Intern, Transportation & Distributed Resources (DER) https://www.peninsulacleanenergy.com/join-our-team
Peninsula Clean Energy
Upcoming Meetings
• Executive Committee:
o Monday, April 8 at 10:00 a.m.
• Citizens Advisory Committee:
o Thursday, April 11 at 6:30 p.m.
• Board of Directors:
o Thursday, April 25 at 6:30 pm
• Audit and Finance Committee:
o Next meeting on May 13 at 8:30 a.m.
CAC Report (Discussion)
Selection of Board of Directors Chair and
Vice Chair (Action)
Proposed Revisions to NEM
Annual Cash Out Policy
Leslie Brown
Board of Directors Meeting
March 28th, 2024
Peninsula Clean Energy
Background
• Net Energy Metering customers (1.0 & 2.0) are cashed out once per year after their April billing cycle, having earned credits monthly at the retail rate.
o Applicable to both NEM 1 and NEM 2 customers.
o $100 or more is issued as a check.
o $100 or less is retained in customer’s credit escrow. o Cash out cap is $20,000.
16 Peninsula Clean Energy
Fiscal History
17 2023 2022 2021 2020 2019 2018
NEM Annual Cash Outs
Commercial Residental
$1.6M
$1.4M
$1.2M
$1.0M
$800K
$600K
$400K
$200K
$-
Peninsula Clean Energy
Considerations and Challenges
• 2% of checks have never been deposited.
• It costs $25 to reissue an expired check.
• On average 3-8 customers exceed the $20,000 cap each year. o Large commercial, school district, and municipal accounts. o Repeat customers
• All other CCAs have caps of $10,000 or less.
o Net Surplus Compensation (NSC) is the dominant program. o RCE is only other CCA that still credits at retail, $5,000 cap. 18 Peninsula Clean Energy
Proposed Revisions
• Raise the current $100 threshold for a customer to receive a check to $500 or more, effective the April 2024 annual cash out.
• Credit balances under the new threshold will be issued as an on-bill credit. o Reduction of checks by over 75% each year.
• Lower the cash out cap to $10,000, starting in April 2025. o Staff will analyze the impact in 2025 and may recommend lowering it to $5,000 in 2026.
19 Peninsula Clean Energy
Alternatives to $100 Check Threshold
Monetary Threshold # of Checks $ of Checks # of On Bill Credits $ of On Bill Credits $300< 3,007 $1,773,950 6,501 $853,924
$500< 1,285 $1,107,468 8,223 $1,520,406
$750< 449 $607,442 9,059 $2,020,432
$1,000< 181 $377,594 9,327 $2,250,281
20 *These are current estimates, actual amounts will differ at time of cash out.
Peninsula Clean Energy
Customer Notification
• These updates will be implemented with appropriate communication to all our solar customers.
o Email
o Letter mailed to customers without an email address.
o Direct outreach to customers affected by the lower cap. 21 Peninsula Clean Energy
Staff Recommendation
• Approval of the proposed updates to the NEM Annual Cash Out policy.
o Raising the annual cash out check threshold to $500 beginning in April 2024. o Lowering of the annual cash out cap from $20,000 to $10,000 beginning in April 2025.
22 Rate Setting Methodology
Board of Directors Meeting
March 28, 2024
Peninsula Clean Energy
• PCE has historically provided customers a 5% discount to PG&E’s generation rates, net of the PCIA
o Easily understandable by customers and stakeholders
o Consistent savings
• PCE elected not to adjust rates in February 2024 and rates were maintained at 2023 levels
o Analysis based on recently adopted liquidity reserve target o Discount to PG&E greater than 10% for most customers
• PCE is considering adjusting rate setting methodology to more closely align with costs
• Engaged NewGen to analyze Cost of Service ratemaking
• Recommendation based in part on results of NewGen analysis, PCE’s strong financial position, and customers’ focus on costs
24 Background
Peninsula Clean Energy
NewGen Analysis
• NewGen worked with staff to
develop a financial model to
calculate contribution margins by
customer class.
• Allocated all PCE costs (fixed and
variable) among customer classes
based on agreed-upon
methodologies.
• Model, once finalized, can be used
to set rates by customer class.
• Results are illustrative and based on
test years 2024 and 2025.
25 Indicative
Results
Significant subjectivity to
unbundle, classify and allocate
costs among customers
Contribution margins vary
widely by customer class
PCE rates exceed costs
across most customer classes
Peninsula Clean Energy
Rate Setting Options
1.Current Methodology – maintain net 5% discount to PG&E generation rates
2.Cost of Service rate setting, including PCE cost allocation
3.Hybrid Approach
26 Peninsula Clean Energy
Current Methodology – Net 5% Discount
• Description: Maintain net 5% discount to PG&E generation rates • Implementation: Adjust PCE rates after PG&E updates rates and/or PCIA changes so that PCE customers maintain net 5% discount to PG&E
Pros
• Positive, easily understandable and
consistent message
• Avoids potential arguments/debates on
cost allocation (uses PG&E allocation)
• Easy to implement
Considerations
• Revenues (and rates) set independent of
costs
• At times, may not be able to generate
enough revenue to cover costs
• At times, rates potentially higher than
necessary, resulting in financial reserves
greater than target
27 Peninsula Clean Energy
Cost of Service Including PCE Cost Allocation
• Description: Rates set based on forecasted cost of service by customer class • Implementation: Estimate cost of providing service to each customer class and set rates to recover costs by customer class; adjust rates mid-cycle if needed based on observed costs
Pros
• Rates set to recover costs on forecasted
basis
• Financial stability and credit positive
• Could be years when PCE rates
significantly less than PG&E (>5%
discount)
• Theoretically equitable rate setting
across customers, assuming proper cost
allocation
Considerations
• Subjectivity allocating costs by customer
class and could be contentious
• Could be years when PCE rates higher
than PG&E
• Discount (or premium) to PG&E will vary
by customer class
• Requires detailed rates analysis
resulting in incremental
administrative/consulting costs
28 Peninsula Clean Energy
Hybrid Approach
• Description: Revenue determined by cost of providing service as an Agency; rates based on PG&E cost allocation resulting in consistent discount across all customers • Implementation: Estimate cost of providing service and calculate discount needed to achieve desired revenues; adjust rates mid-cycle if needed based on actual costs Pros
• PCE rates set to recover costs
• Financial stability and credit positive
• Could be years when PCE rates
significantly less than PG&E (>5%
discount)
• Avoids potential contention on cost
allocation and easier to implement than
cost of service ratemaking
• Consistent message across customers
and easy to compare rates to PG&E
Considerations
• Could be a years when PCE rates higher
than PG&E
29 same as Cost of Service
Peninsula Clean Energy
CCA Benchmarking
“PG&E Minus” Cost of Service “Hybrid Approach”
30 Peninsula Clean Energy
Recommendation and Next Steps
Recommendation
• Adopt “hybrid” approach that includes elements of current “PG&E minus” and cost of service ratemaking methodologies
• Better ensures financial stability, while maximizing the discount provided to customers; also avoids subjectivity and possible contention of allocating costs among customers Next Steps
• Utilize budget process to forecast costs and continue to invest in customer programs • Pending Board approval, calculate revenue and the maximum discount possible while maintaining appropriate financial reserves
• Board approval of budget in June, including PCE rates and discount to PG&E • Update PCE rates on August 1
• Monitor costs and PG&E rate actions throughout year and adjust rates mid-cycle only if needed 31 Load Management Standard Plan
for California Energy Commission
Presented by:
Doug Karpa (Managing Counsel of Regulatory Policy)
Jeremy Waen (Sr. Dr. of Regulatory Policy)
Peninsula Clean Energy
Goals of the Load Management Standard
In January 2023, the California Energy Commission (CEC) established revised regulations for a Load Management Standard (LMS)
(20 Cal Code Regs. §§ 1621 – 1623.1)
These regulations seek to:
o “establish cost-effective programs and rate structures, which will o encourage the use of electrical energy at off-peak hours and o encourage the control of daily and seasonal peak loads o to improve electric system equity, efficiency, and reliability…” (20 Cal. Code Regs § 1621(a))
33 Peninsula Clean Energy
Load Management Standard Regulation (1 of 2)
The LMS asks Peninsula Clean Energy (PCE) to submit a plan to encourage off-peak energy use and control of daily and seasonal peak loads
This regulation provides two options to achieve these goals:
Option 1: Offer marginal cost-based rates
Option 2: Offer programs that respond to marginal cost signals 34 Peninsula Clean Energy
Load Management Standard Regulation (2 of 2)
LMS compliant rates and programs:
oMust be offered to each customer class
oMust be evaluated on:
35 § Cost-effectiveness § Benefits to the grid
§ Equity § Benefits to customers
§ Technological feasibility
Peninsula Clean Energy
Load Management Standard Requirements
Key Deadlines & Milestones
April 1, 2024 – Load Management Standard Plan due
May 31, 2024 – Board hearing to occur by this date
October 1, 2024 – List of load flexibility programs to be submitted to the CEC July 1, 2025 – One rate approved unless it would not materially reduce load April - May 2027 – Board review of the plan every three years after approval July 1, 2027 – Offer marginal cost-based rates and/or programs to customers 36 Peninsula Clean Energy
Option 1: Marginal Cost-Based Rates
Rates must be considered first for compliance
Preliminary assessments discourage developing PCE-specific rates due to cost-effectiveness, technically feasibility, benefits to the grid, and equity concerns
Instead, PCE staff is evaluating participation in PG&E’s Real-Time Pricing (RTP) rate pilots including:
• Agricultural Flexible Irrigation Technology (AgFIT)
• Business Electric Vehicle (BEV)
• Vehicle to Grid Integration (VGI)
37 Peninsula Clean Energy
Option 2: Marginal Cost-Based Programs (1 of 2)
If rates are not feasible, then programs can be offered as an alternative means for compliance.
PCE is pursuing many programs to manage peak loads, including:
38 § EV managed charging § FLEXmarket
§ Residential Solar and
Storage Programs
§ Residential Electrification Direct
Install
§ GovPV/BE/EV
Peninsula Clean Energy
Option 2: Marginal Cost-Based Programs (2 of 2)
By 2027: At least one program offered to each customer class Programs must respond to hourly signals.
• Needs Distributed Energy Resources Management Systems (DERMS) PCE’s own programmatic objectives may not align well with LMS regulation objectives
39 Peninsula Clean Energy
Load Management Standard Requirements
The Board may delay timely implementation if:
1. It would result in extreme hardship to the CCA,
2. It would result in reduced system reliability or efficiency,
3. It would not be technologically feasible or cost-effective to implement, or
4. Modification of the prior adopted LMS plan is needed to provide more technologically feasible, equitable, or cost-effective alternatives.
40 Peninsula Clean Energy
Next Steps
41 • PCE is likely to pursue a combination of PG&E’s RTP rate pilots and PCE programs to meet the goals of the LMS.
• The Draft PCE LMS Plan was provided within this
meeting’s packet.
• The Final PCE LMS Plan will be brought back for Board approval in April.
Update of 100% Annual Renewable
Energy Goal
Board of Directors Meeting
March 28, 2024
Peninsula Clean Energy
Agenda
• Background
• CY 2025-2026 Cost of Energy Analysis
• Considerations & Options
• Recommendation
CONFIDENTIAL 43
Peninsula Clean Energy
Recommendation
Approval of Revisions to Peninsula Clean Energy's Organizational Priority Number 1 of the Strategic Plan from:
"Delivering 100% Renewable Energy Annually by 2025" to
"Delivering 100% Renewable Energy Annually by 2030 Through Strategic Procurement of Resources to Maximize Peninsula Clean Energy's 24/7 Hourly Renewable Matching"
CONFIDENTIAL 44
Background
Peninsula Clean Energy
Current Priorities and Goals
PCE's Organizational Priority #1:
Delivering 100% renewable energy annually by 2025 and on a 99% time-coincident basis by 2027.
Power Resources' Strategic Goal #1:
Secure sufficient, low cost, clean sources of electricity that achieve Peninsula Clean Energy’s priorities while ensuring reliability and meeting regulatory mandates.
• Balancing Priorities: Affordability v. High Renewable Content (in the near term)
CONFIDENTIAL 46
Peninsula Clean Energy
Timeline
ØAddress the 2025 Annual Renewable Goal at the March BOD ØPrepare FY 24/25 Cost of Energy Budget based on the BOD Decision ØAddress the 2027 Hourly Renewable Matching Goal at the April 25 BOD ØBased on discussion at the November 2023 Board Retreat ØReflect adopted changes to either goal in the Strategic Plan ØMid-year review at the May 13 Executive Committee meeting ØApprove FY 24/25 Budget at the June BOD
CONFIDENTIAL 47
Peninsula Clean Energy
Snapshot:
Renewable % with Current Resource Portfolio
• Conservative Assumptions:
o Excluding several PPAs with significant
uncertainty around their commercial operation
dates;
o No new generation PPAs with commercial
operation dates in 2025-2027
• Annual renewable % may fluctuate in
future years due to addition of new
contracts, expiration of existing contracts,
actual performance of resources, and
load increases.
* Estimates based on existing Power Purchase
Agreements (PPAs) in the portfolio
Year PCE Portfolio Projected Renewable
Content as of March 2024*
2025 68%
2026 78%
2027 86%
2028 80%
2029 72%
2030 69%
CONFIDENTIAL 48
Peninsula Clean Energy
Challenges with the 2025 Target Year
• Achieving 100% renewable in 2025 will be
very expensive due to:
o Lack of near-term renewable resources for long-term
contracting
o Project delays and terminations
o Extremely high prices for PCC1 Renewable Energy
Credits (RECs)
CONFIDENTIAL 49
Year
Projected
Renewable % via
PPAs
Short-term PCC1
REC Purchase
Required
2025 68% 32%
• Buying RECs does not provide
any "additionality" benefits to the grid;
o PPAs allow developers the long-term financial stability to build new renewable projects that will displace natural gas resources (aka, “additional” GHG reductions)
Peninsula Clean Energy
Terminology
• "Eligible Renewable Energy Resources" is defined by California's Renewable Portfolio Standard (RPS)-
o Eligible resources include: wind, solar, geothermal, biomass and eligible small hydro o Regulatory requirement: Minimum % of retail sales must be renewable; % increases over time to 60% by 2030 • "Renewable Energy Credit (REC)" - 1 REC per 1MWh of generation from Eligible Renewable Energy Resources
• "Portfolio Content Categories" (PCC)
o PCC-1: "Bundled Energy and REC"
o In State or Interconnected to California or Dynamic Transfer o PCE Policy is to procure PCC-1 renewables only
o PCC-2: "Out-of-state renewable bundled with substitute energy" o PCC-3: "Unbundled" REC only
• "Greenhouse Gas (GHG) Free Resources" typically refers to large hydro and nuclear resources CONFIDENTIAL 50
Peninsula Clean Energy
Product Content
CONFIDENTIAL 51
• PCC1 REC: Eligible Renewable on PCL, emissions factor of the renewable facility (no emissions for solar and wind) • PCC2 REC: Eligible Renewable on PCL, emissions factor of unspecified power (looks like natural gas) • PCC3 REC: Unspecified power on PCL, will also show under "unbundled REC" area on PCL, emissions factor of unspecified power (looks like natural gas)
• Greenhouse Gas (GHG) Free: Large Hydro on PCL, no emissions 2022 POWER CONTENT LABEL (PCL)
ECO100:
• 100% Renewable
• 100% GHG Free
• 100% Clean
ECOplus:
• 100% Clean
• >50% Renewable
CY 2025-2026 Cost of Energy
Analysis
Peninsula Clean Energy
CY 2025 Assumptions
• Changes relative to the 5-yr forecast from June 2023:
o 5% increase in load forecast and 16% reduction in forecasted renewable supply o 105% and 383% increase in price forecasts for REC and GHG-Free attributes Variable Difference
Load (GWh) 5%
Renewable Supply (GWh) -16%
REC Price ($/MWh) 105%
GHG-Free Price ($/MWh) 383%
CONFIDENTIAL 53
Peninsula Clean Energy
CY 2025 Summary of Costs
• Meeting the 100% renewable energy goal in CY 2025 could increase PCE's Cost of Energy by around ~$17/MWh ($85 million) relative to the 5-yr forecast.
Scenario Difference relative to
5-yr Forecast (million $)
Difference relative to
5-yr Forecast ($/MWh)
5-yr Forecast for CY 2025
(100% Renewable) NA NA
100% Renewable 85 16.77
68% Renewable/
32% GHG-Free 24 1.43
50% Renewable/
50% GHG-Free -1 -4.97
CONFIDENTIAL 54
Peninsula Clean Energy
CY 2026 Assumptions
• Changes relative to the 5-yr forecast from June 2023:
o 3% increase in load forecast and 25% decrease in forecasted renewable supply o 100% and 314% increase in price forecasts for REC and GHG-Free attributes CONFIDENTIAL 55
Variable Difference
Load (GWh) 3%
Renewable Supply (GWh) -25%
REC Price ($/MWh) 100%
GHG-Free Price ($/MWh) 314%
Peninsula Clean Energy
CY 2026 Summary of Costs
• Meeting the 100% renewable energy goal in CY 2026 could increase PCE's Cost of Energy by around ~$27/MWh ($122 million) relative to the 5-yr forecast
Scenario Difference relative to
5-yr Forecast (million $)
Difference relative to
5-yr Forecast ($/MWh)
5-yr Forecast for CY 2026
(100% Renewable) NA NA
100% Renewable 122 26.92
78% Renewable/
22% GHG-Free 76 15.74
50% Renewable/
50% GHG-Free 28 3.75
CONFIDENTIAL 56
Peninsula Clean Energy
Change in Net Position - CY 2025
• For every 1% increase in
our renewable goal,
Change in Net Position
will decrease by ~$1.7
million in CY 2025
$41
$16
$(45)
$(50)
$(40)
$(30)
$(20)
$(10)
$-
$10
$20
$30
$40
$50
50% 60% 70% 80% 90% 100%
Change in Net Position (million $)
% Renewable
5-yr Forecast: $37M
(50% Renewable)
(68% Renewable)
(100% Renewable)
CONFIDENTIAL 57
Peninsula Clean Energy
Change in Net Position - CY 2026
• For every 1% increase in
our renewable goal,
Change in Net Position
will decrease by ~$1.9
million in CY 2026
$51
$3
($43)
($60)
($40)
($20)
$0
$20
$40
$60
$80
$100
50% 60% 70% 80% 90% 100%
Change in Net Position (million $)
% Renewable
5-yr Forecast: $81M
(50% Renewable)
(78% Renewable)
(100% Renewable)
CONFIDENTIAL 58
Consideration & Options
Peninsula Clean Energy
Decision Considerations
• Cost of Energy could be significantly reduced by adopting a more gradual approach to meeting the 100% annual renewable goal;
• Affordability and lower costs facilitate electrification efforts; • Current strategy involves buying substantial amount of PCC1 RECs in the short term, but buying RECs doesn’t provide additional emission reduction benefits to the grid;
• PCE's primary objective is to achieve a high time-coincident target, any new procurement should focus on best-fit resources for hourly matching; • Maintain a 100% renewable product for interested customers.
CONFIDENTIAL 60
Peninsula Clean Energy
Options
• Low Cost Option
o Higher of 50% annual renewable or Renewable Portfolio Standard (RPS) requirement, with the remainder fulfilled by carbon-free energy.
• Mid Cost Option
o Drive to 100% renewable portfolio in 2030 by procuring resources to maximize hourly renewable matching
§ Annual renewable percentage between CY 2025 and CY 2029 will continue on an upward trajectory with a minimum of 60% but will remain flexible based on available renewable resources, ability to sign long-term PPAs that match our portfolio needs, and balance the need to keep customer costs in check; § Facilitate increase in renewable content through contracting new long-term resources based on best-fit to maximize PCE's 24/7 hourly renewable matching, and avoid procurement of short-term RECs; • High Cost Option
o Achieve 100% Renewable by 2025 (i.e. the current target) CONFIDENTIAL 61
Peninsula Clean Energy
Benchmarking Against Other CCAs
CONFIDENTIAL 62
Factors to Note:
• PCE's portfolio and projections
are optimized to minimize
emissions and do not include:
o PCC-2 RECs
o PCC-3 RECs
o Biomass
• 100% Renewable Product
enrollment differs among CCAs
Note: Renewable content data on other CCAs are based on research from available public sources, and may not reflect the most current status or projections.
Peninsula Clean Energy
Estimated Cost Comparison
Year
LOW COST
OPTION-Renewable
Content
MID COST
OPTION-Renewable
Content
(Illustrative)
HIGH COST
OPTION-Renewable
Content
MID COST
OPTION Additional
Cost (million $)
Relative to LOW COST
OPTION*
HIGH COST OPTION
Additional Cost
(million $) Relative to
LOW COST OPTION
2025 50% 68% 100% 31 87
2026 50% 72% 100% 41 94
2027 52% 75% 100% 42 88
2028 54.7% 78% 100% 38 74
2029 57.3% 80% 100% 29 54
2030 60% 100% 100% 35 35
Total 216 432
*Estimates based on current analysis
CONFIDENTIAL 63
Recommendation
Peninsula Clean Energy
Staff Recommendation
With input from the Procurement Subcommittee, Staff recommends pursuing the Mid Cost Option - Drive to 100% renewable portfolio in 2030 by procuring resources to maximize hourly matching.
Reasons:
1. Keep costs low for our customers; encourage electrification
2. Maintain a minimum of 60% renewable content for CY 2025-2029;
3. Continue to procure new renewable projects based on hourly matching;
4. Grow renewable content each year using long-term contracts, and avoid buying significant amounts of expensive PCC1 RECs in the interim;
5. Maintain flexibility by not having prescriptive targets each year.
CONFIDENTIAL 65
Peninsula Clean Energy
Recommendation
Approval of Revisions to Peninsula Clean Energy's Organizational Priority Number 1 of the Strategic Plan from:
"Delivering 100% Renewable Energy Annually by 2025" to
"Delivering 100% Renewable Energy Annually by 2030 Through Strategic Procurement of Resources to Maximize Peninsula Clean Energy's 24/7 Hourly Renewable Matching"
CONFIDENTIAL 66
Adjournment
Peninsula Clean Energy