Peninsula Clean Energy
Board of Directors
Regular Meeting
May 23, 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 Administrative Assistant, Brianna Arroyo • Action to set the Agenda and Approve Consent Items 1-7 o Consent - Public Comment
• Regular Agenda
• Adjournment
Chair Report (Discussion)
CEO Report (Discussion)
Peninsula Clean Energy
Recent Victories
1) Level 1 Charging Survives the Chopping Block at CA HCD o Kudos to Philip Kobernick and many others who moved quickly to resolve o Significant support from Cal-CCA and other strategic allies 2) San Mateo County Community College District (SMCCCD) votes to leave DA and join PCE service starting July 2024
o Kudos to Justin Pine and many others who brought this across the goal line o SMCCCD is 14GWh of new load; Almost 40 GWh brought over from DA ytd, and with Caltrain that will add up to 100 GWh of new load by year-end 5 Peninsula Clean Energy
Programs Update
• Member Agency Energy Grants
o Proposals received from: Los Banos (heat pump HVACs), San Bruno (LED streetlights incl. with solar/storage backup), and South San Francisco (LED streetlights) • Buildings
o GovBE incentives and finance for methane gas reduction launched – proposals due June 28 • Electric Transportation
o EV charging crossed 1000 ports installed, 2/3rds in multi-family o E-Bikes program for 2024 expected to launch next month • Distributed Resources
o Millbrae Recreation Center is now solar powered, installed through the GovPV program | 6
Peninsula Clean Energy
Legislative Update
• Bills, Bills, Bills
• AB 1999 (Irwin) – Income Graduated Fixed Charge
• AB 2054 (Bauer-Kahan) – Cooling Off Period
• SB 1095 (Becker) – Cozy Homes
• State Budget
• June 15 Constitutional Deadline
• Climate Bond: AB 1567 (Garcia) and SB 867 (Allen)
• June 27 Deadline for November 5 Ballot
7 Peninsula Clean Energy
PCE in the Community
• 5/18/2024; Los Banos Home Fair 2024
• 5/23/2024; Pacheco High School Wax Museum; Los Banos
• 5/24/2024; Pacheco High School Wax Museum; Los Banos
• 5/30/2024; Energy Discount Training with Thrive Alliance and El Concilio; San Mateo County
• 6/9/2024; Rise South City Spanish Workshop; South SF
• 6/17/2024; Climate Resilient Communities Focus Group on EVs; East Palo Alto
• 6/19/2024; (DATE TBC) E-Bike Happy Hour with SSMC; San Mateo County
8 Peninsula Clean Energy
Upcoming Council Briefings
• Foster City – June 3
• East Palo Alto - June 4
• Redwood City – June 10
• Half Moon Bay – June 18
• Daly City – August 12
• South San Francisco - August 14
• San Mateo – August 19
• San Carlos – August 26
• County of San Mateo - August 27
• Menlo Park – August 27
• Millbrae - September 10
• Woodside – September 24
• Portola Valley - September 25
9 Peninsula Clean Energy
Staffing Updates
Welcome!
• Melanie Jasper, Associate Programs Manager, EVs started on May 16th • Justin Kudo, Associate Director of Rates Strategy will start on June 24th • Andy Wang, Data Engineer in our Data/IT Department will start on July 1 • Gaby Ibarra, Buildings Program Concierge starting on July 16 • And 4 new interns starting in June!
10 Peninsula Clean Energy
Upcoming Meetings
• Audit and Finance Committee:
o Monday, June 10 at 8:30 a.m.
• Executive Committee:
o Monday, June 10 at 10:00 a.m.
• Citizens Advisory Committee:
o Thursday, June 13 at 6:30 p.m.
• Board of Directors:
o Thursday, June 27 at 6:30 pm
CAC Report (Discussion)
Rate Stabilization Fund
Peninsula Clean Energy
Rate Stabilization Fund Overview
• Accounting policy that allows government entities, such as PCE, to recognize expenses and revenues from rates designed to recover those costs in the same period • Rationale:
o Stabilize customer rates by avoiding rate increases to address spikes in energy costs, or to offset reductions in rates due to the PCIA
o Defer revenues in years when financial results are strong to be used in future years when financial results are not as strong or stressed
o Could be drawn upon to meet potential financial covenants if needed • Accounting impact (see next page):
o Reduce revenues (and Change in Net Position) in the accounting period deferral is made o Increase revenues (and Change in Net Position) in the accounting period revenue is recognized • No impact to cash
• MCE, Clean Power Alliance, Ava, Sonoma Clean Power, and CleanPowerSF have implemented Rate Stabilization Funds
14 Peninsula Clean Energy
Year 1 Year 2 Year 3 Year 1 Year 2 Year 3
Electricity Sales $100 $105 $110 $100 $105 $110
Revenue Deferred to/from Rate Stabilization Fund - - - (10) 10 - Total Operating Revenue 100 105 110 90 115 110
Costs 85 109 103 85 109 103
Change in Net Position $15 ($4) $7 $5 $6 $7
Balance Sheet
Cash 15 11 18 15 11 18
Rate Stabilization Fund (liability) - - - 10 - -
With Rate Stabilization Fund
Accounting Example
15 No impact
to cash
Revenue deferred
to Year 2
Smooths net
revenue without
changing rates
Peninsula Clean Energy
Proposed Guidelines
• Staff will consider deferral of revenues when projected addition to Net Position is greater than 3% of revenues
• Deposits can be made into the Rate Stabilization Fund until the balance equals 15% of revenues
• Staff will consider withdrawals of revenues when Change in Net Position is projected to be negative or as necessary to satisfy any covenants • Staff will notify the Board of Directors after a transfer (deferral or recognition) is made
16 Peninsula Clean Energy
Recommendation
• Establish a Rate Stabilization Fund under GASB 62 to help PCE stabilize customer rates
• Authorize the Chief Executive Officer or the Chief Financial Officer to transfer in or transfer out, from time to time, such amount as prudent and appropriate and based on the proposed guidelines
17 Proposal to Transition to an
In-House Contact Center
Leslie Brown Director of Account Services
Stephanie Elmore Contact Center Consultant
Presented to PCE Board of Directors
May 13th, 2024
Peninsula Clean Energy
Agenda
• Stephanie Elmore Introduction
• Business Objectives
• Contact Center Solution (Current and New Proposal)
• Peer Agency Analysis
• Financial Impact
• Implementation Timeline
• Recommendation
19 Peninsula Clean Energy
Stephanie Elmore- Call Center Expert
• Over a decade of call center management experience with a focus in escalations and customer service.
• Supported multiple customer service and retention call centers throughout New York, New Jersey, Connecticut, Texas, Virginia and California. • Supervised and trained representatives, monitored calls for quality assurance, and planned and implemented various initiatives, programs, and President’s Club award ceremony and trips.
• Aided in the development of new call centers.
20 Peninsula Clean Energy
Business Objectives for PCE Contact Center
1. Improve Customer Experience and Enhance Quality Control
2. 360 View and Customer Centric Support
3. Customer Retention and Reducing Opt-Outs
21 Peninsula Clean Energy
Problem: Current Customer Support Architecture
22 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
Current Service Ecosystem
Phone
Calls
InContact
IVR
ECC Tier
2 CSR
• Calpine/ECC CSRs are the first line of
contact for PCE customers.
• ECC representatives are unable to
provide in-depth explanations beyond
the information available on our
website and scripted talking points.
• PCE does not have immediate
feedback from customers.
• PCE is not allowed to have direct
contact with Calpine agents.
• Quality Assurance concerns & issues.
Peninsula Clean Energy
Current Service Escalation Ecosystem
Phone
Calls
InContact
IVR
Tier 2
CSR
Calpine CSR unable to resolve
customer issue due to limited
information
CSR creates an submits an
Escalation Ticket to our team
Account Services and/or Programs
review the ticket and resolve the issue
for Calpine.
Ticket and resolution sent back to
Calpine or PCE staff contacts
customer directly
This inconsistent
process causes a
delay in when our
customers receive a
resolution.
This loop does not
allow a customer to
receive a same day
resolution; there is a
minimum of a 1 day
turn around.
Peninsula Clean Energy
New In-House Contact Center Service Ecosystem
Phone
Calls
InContact
IVR
PCE
CSR
• Proposed Staffing: Contact
Center Manager and three
CSR’s. Minimum of one
bilingual Spanish CSR
• PCE is now in direct contact
with our customers. Immediate
enhanced and seamless
experience for PCE
Customers.
• Improved quality control and
immediate feedback as our
customers can ask questions
and voice concerns real-time
(VOC).
Peninsula Clean Energy
New Contact Center Service Escalation Ecosystem
Phone Calls InContact
IVR
PCE
CSR
Research completed while
speaking with the customer
Resolve customer
issue/concerns during initial call.
Our in-house contact
center is a one stop
shop where we
provide an improved
customer experience
resolving customer
issues and concerns
during their initial call.
Peninsula Clean Energy
Peer Agencies: Internal Call Center Transition
• MCE Experience
o Improved customer retention
o Increased Spanish call volume
o Better/faster service response times (SLA)
• CPSF Experience
o Improved customer experience
o Direct communication between Supervisors and CSRs
• Sonoma Experience
o Building rapport with their customers
o Improved quality control
Peninsula Clean Energy
Financial Impact
28 Peninsula Clean Energy
May 23, 2024
Board approval to
move forward with
in-house contact
center transition
Jul 1, 2024
Convert from
contracted Contact
Center Manager to
regular employee
status
Aug 2024
Recruit and hire a
team of 3 customer
service
representatives.
Sept - Oct 2024
Training of contact
center
representatives
Nov 2024
Transfer calls from
Calpine to the new
in-house contact
center having our
new representatives
handle all live calls.
Proposed Timeline
May 2024 November 2024
Peninsula Clean Energy
Staff Recommendation
Recommend Board of Directors approve PCE staff’s proposal to move forward with the development of an in-house customer contact center. 30 Review of Community
Advisory Committee 2023
Working Groups and
2024 Work Plan
May 23, 2024
Peninsula Clean Energy
2023-24 CAC Work Plan
• In July 2023, the Board of Directors
approved an annual work plan for the
Community Advisory Committee (CAC)
• Included voluntary working groups for
members to engage in specific tasks
32 CAC members taking the Oath of
Office in 2023
Peninsula Clean Energy
Working Group Result Highlights
Building Electrification: Advanced community education and supported development of turnkey service and GovBE
Electric Vehicle Managed Charging: Advised the design of the EV managed charging study and helped evaluate results Local Solar + Storage Programs: Researched 20+ programs related to distributed energy resources and virtual power plants 33 Peninsula Clean Energy
Working Group Result Highlights (continued)
Education Initiatives: Identified opportunities to serve Los Banos students with energy-related field trips and other educational programs
Diversity, Equity, Accessibility, and Inclusion: Provided feedback on language and technology access policies and the equity decision-making framework
34 Peninsula Clean Energy
2024 Work Plan Guiding Principles
• Ensure PCE staff and Board understand how to effectively leverage the CAC to drive 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 2024 CAC Working Groups
Project Proposed Task Description
Strategic Planning Provide input on strategic planning process Building Electrification
Programs
Provide input on the next iteration of building
electrification programs and strategy
Transportation
Electrification Programs
Provide input on residential programs for electric
vehicles, EV chargers, and electric bicycles
Marketing Strategy Advise branding strategy and campaigns, including programs marketing
Peninsula Clean Energy
Recommendation
Approve the 2024 Community
Advisory Committee Work Plan
37 Diversity, Equity, Accessibility and
Inclusion (DEAI) Action Plan
Implementation Update
May 2024
Peninsula Clean Energy
Our DEAI Policy
“Peninsula Clean Energy commits to making
diversity, equity, accessibility, and inclusion a
priority during decision-making.”
- Peninsula Clean Energy Policy 22
39 Peninsula Clean Energy
Action Plan Development
• DEAI Policy (Policy 22) passed Oct 2022
• Action Plan implements the Policy
• Developed by our equity consultants GCAP
• Includes recommendations from staff, Board, CAC and community • Approved by Board of Directors in May 2023
40 Peninsula Clean Energy
1 Year Action Plan Status
• 44 actions total
• 80% are complete or
in progress
• 20% not yet started
41 Peninsula Clean Energy
Organizational Culture and DEAI Commitment
Responsible: CEO, COO, CFO
Goal: Advance and promote diversity, equity, accessibility, and inclusion within PCE’s workforce, business practices, policies, and programs.
Total # of Actions: 9
Complete: 6
Started, ongoing: 2
Not yet started: 1
42 Peninsula Clean Energy
DEAI Commitment Highlight
Action: Establish a DEAI framework for goal-setting and decision-making
o Process to analyze the impacts of our major decisions across our customer segments from a DEAI perspective.
Status: Complete. Staff to be trained in implementation June 7. 43 Peninsula Clean Energy
Human Resources, Staffing, and Recruitment
Responsible: HR
Goal: Create a workforce that is more representative and inclusive of people of all backgrounds; provide equitable access to employment opportunities
Total # of Actions: 7
Complete: 4
Started, ongoing: 2
Not yet started: 1
44 Peninsula Clean Energy
Human Resources Opportunity
Action: Enhance DEAI in the Application and Interview
Process
• Train hiring managers on how to mitigate bias during the hiring/promotions processes
• Track diversity metrics for recruiting, hiring, promotion, and internal transfers • Add preference for candidates who are fluent in Peninsula Clean Energy priority languages to job announcements in customer facing teams Status: Not yet complete.
45 Peninsula Clean Energy
Training and Development
Responsible: HR, DEAI Lead
Goal: Require employees to complete DEAI related training and promote and encourage Board and Citizen Advisory
Committee members to do so as well
Total # of Actions: 5
Complete: 1
Started, ongoing: 2
Not yet started: 2
46 Peninsula Clean Energy
Training and Development Highlight
Action: Require employees to complete DEAI-related training Status: Ongoing
DEAI Staff Trainings to Date:
October 2022 (4 hours)
• Introduction to DEAI
December 2023 (2.5 hours)
• Environmental justice and our customers
• Microaggressions in the workplace
47 Peninsula Clean Energy
Energy Program Development and Implementation
Responsible: Programs Team
Goals:
• Define energy equity and set goals and metrics for achieving it through our programs.
• Increase input and feedback from diverse communities to improve equity in programs
Total # of Actions: 5
Complete: 1
Started, ongoing: 2
Not yet started: 2
48 Peninsula Clean Energy
Energy Programs Opportunity
Action: Review Current Programs for Gaps & Inequities
Re-examine the following program elements:
• Target audience
• Program qualifications and eligibility requirements
• Marketing methods
• Effort required to participate in programs (time burden) Status: Not yet started
49 Peninsula Clean Energy
Marketing and Account Services
Responsible: Marketing/Community Relations and Account Services Teams Goal:
• Improve accessibility of Peninsula Clean Energy customer service, energy supply, and energy programs…
• especially among low-income and disadvantaged populations, and limited English proficiency groups
Total # of Actions: 8
Complete: 1
Started, ongoing: 7
Not yet started: 0
50 Peninsula Clean Energy
Marketing Highlights and Opportunities
Action: Develop Peninsula Clean Energy Language and
Technology Access Guidelines
Status: Started, ongoing
• Outreach materials printed in Spanish and Traditional Chinese
• Outreach services offered in Spanish, Mandarin,
Cantonese, Tagalog, and other languages
• Robust guidelines nearing completion
51 Peninsula Clean Energy
Vendor Diversity and Social Responsibility
Responsible: Power Resources Team, and all teams
Goals:
• Ensure that PCE suppliers are environmentally conscious and have equitable business practices.
• Establish a level playing field by creating opportunities and eliminating barriers to equal participation for all vendors.
Total # of Actions: 10
Complete: 4
Started, ongoing: 3
Not yet started: 3
52 Peninsula Clean Energy
Social Responsibility Highlight
Action: Add questions to Request for Offers (RFO) template for utility scale procurement regarding:
• Environmental Stewardship
• Disadvantaged Community Outreach
• Workforce Development
• Responsible Procurement and Supplier Diversity
Status: Complete. 20% of the score when proposals for new power purchase agreements (PPAs) are evaluated.
53 Peninsula Clean Energy
Thank You to the DEAI Council
Staff supporting DEAI Action Plan implementation in their departments:
• Shalini Swaroop, C-Suite
• Catherine Hansen, Human Resources
• Phillip Kobernick, Energy Programs
• Vanessa Shin, Marketing
• Justin Pine, Account Services
• Shayna Levia, Power Procurement
• Zsuzsanna Klara & Jenna Sharp, Reg/Leg
• Kirsten Andrews-Schwind, DEAI Lead
54 Peninsula Clean Energy
Action Plan Implementation Challenges
1. HR capacity for DEAI implementation
2. Fully implementing our DEAI Training Plan
3. Ownership for DEAI Action Plan implementation
across all staff
55 Peninsula Clean Energy
Next Steps
• Keep working on implementation…
• While also integrating these actions into our updated long-term strategic plan
56 Board of Directors
May 23, 2024
Distributed Energy Resource:
Plan – Part 1
Peninsula Clean Energy
Agenda
•Overview of Programs
• DER Vision, Definitions & Objectives
• Current Programs
• Near-Term Plans
| 58
Peninsula Clean Energy
DER Plan: 2 parts
Part 1 (May)
1. DER Vision, Definitions & Objectives
2. Current Programs
3. Near-Term Programs & Timeline (1-2 yrs)
Part 2 (TBD)
1. Quantification: what we have, what we want to achieve
2. DER Challenges
3. Innovation
4. Policy Needs
5. Future Concepts (3-5+ years)
59 Overview of Programs
60 Peninsula Clean Energy
How We Effect Change
Drive
Innovation
Energy,
Tech,
Methods,
Data
Shape
Policy
Reach
Codes,
CALGreen,
CPUC, etc.
Influence
Individual
Decisions
Incentives,
Technical
Assistance,
Persuasion 1. Demonstrate scalable
methods for CA to adopt
And
2. Mobilize market forces to
support decarbonization
61 Peninsula Clean Energy
Programs Portfolio
62 *
*
*
+
* Low-income program + Includes low-income benefits
EV Managed
Charging
Distributed Energy
Resources (DER) Plan
Part 1
63 Peninsula Clean Energy
Grid of the Future
64 Peninsula Clean Energy
Distributed Energy Resources 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
Virtual Power Plant (VPP): Definition
Network of distributed energy resources
dispatchable for grid services
66 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 67 Peninsula Clean Energy
Current Programs
68 Residential solar and storage
Incentives for installations.
Provides “load modification” value
to PCE.
Size: ~600 homes Status: Enrollment closed
EV managed charging (Resi & GovEV)
Shifts charging to best time for
grid. Residential: Telematics based.
Upfront incentive to enroll. GovEV:
Part of fleet management & charging.
Resi Size: ~700 enrolled Status: general start
Solar & storage on
public buildings (“GovPV”)
PCE provides all project
development and procurement, no upfront cost.
Currently solar-only projects.
Size: 12 sites, 1.7MW Status: 22+ in rnd 2
FLEXmarket
Pay for performance incentives
to contractors for efficiency and
electrification. All sectors. Higher incentives for
grid benefits.
Size: $4.6M from CPUC Status: Rnd 1 ongoing
Near-Term Plans
69 Peninsula Clean Energy
Residential: Three Services
70 Fixed battery storage
(and solar)
Right-sized resilience “Virtual power plants”
Peninsula Clean Energy
New Residential Solar & Storage Program
71 PV + Battery
PCE Grid Services
PCE Finance
Customer
selects providers
Peninsula Clean Energy
Community DERs: Adding storage to GovPV
1. Add storage to existing sites
2. Develop new sites with solar and
storage
Includes:
1. New financial and operating model
2. Third-party finance
3. Grid services integration
72 Peninsula Clean Energy
Timeline
73 2020 2021 2022 2023 2024 2025 2026
Buildings LI Home Upgrade Home Upgrade v2 VPP homes
Resi solar & storage v1 Resi solar & storage v2
GovPV Rnd 1 installs, Rnd 2 start GovPV2 install GovPV2b batteries Round 3 start (add sectors)? FLEXMarket
EV Managed Charging (resi & fleet)
Innovation EV Mg Chg Pilot I EV Mg Chg Pilot II
Harvest Thermal
V2B pilot? Microgrid?
Local
Generation &
DERs
Committee Members’ Reports
Peninsula Clean Energy
Adjournment
Peninsula Clean Energy