Peninsula Clean Energy
Board of Directors
Regular Meeting
June 27, 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 1-6 o Consent - Public Comment
• Regular Agenda
• Closed Session
• Adjournment
Chair Report (Discussion)
CEO Report (Discussion)
Peninsula Clean Energy
CEO Report
5 Congressional Earmark Request Moves Forward
o $2M request to support low income home energy upgrades was included by both Senators Butler and Padilla in the Housing, Transportation & Urban Devt Appropriations Bill - stay tuned!
Regulatory Policy Wins Support Low Income and Disadvantaged Communities
o Community Solar Green Tariff (CGST) retired to allow for 30% DAC-GT Expansion o Authorization of new Community Renewable Energy Program Successful NEM Cash Out
Peninsula Clean Energy
CEO Report
6 Recent DEAI Presentations and Panels
o Asian American and Pacific Islander Heritage
o Learning About Juneteenth
o Celebrating Pride Month
2026/2027 Facilities Planning
o Quarterly Staff meeting in June / Field Trip to SCP Advanced Energy Center o Facilities Committee Launched
Peninsula Clean Energy
CEO Report: Programs Update
Zero Percent Loans/On Bill Financing
o Crossed the 500 mark; 66 contractors participating!
Member Agency Energy Grants
o Proposals received from: Burlingame (landscape equipment electrification), Foster City (community center), Los Banos (heat pump HVACs), San Bruno (LED streetlights incl. with solar/storage backup), and South San Francisco (LED streetlights)
Gov BE/Buildings
o Applications for Local Govt Electrification Grants & Loans –deadline extended to July 3 Electric Transportation
o 2024 E-Bikes program launched – 340 applications received, 30 already purchased Distributed Resources
o GovPV Round 2 has 12 of 23 PPAs signed. Next system complete: San Bruno Aquatic Center (August) | 7
Peninsula Clean Energy
CEO Report Legislative Update
• 2024-25 State Budget
• June 15 Constitutional Deadline
• June 26 Vote
• Energy Trailer Bill
• Climate Bond: AB 1567 (Garcia) and SB 867 (Allen)
• June 27 Deadline for November 5 Ballot
• July 3 Deadline for November 5 Ballot
8 Peninsula Clean Energy
Upcoming Council Briefings
• South San Francisco - August 14
• San Mateo – August 19
• Half Moon Bay – August 20
• San Carlos – August 26
• San Mateo County Board of Supervisors
- August 27
• Menlo Park – August 27
• Millbrae - September 10
• Woodside – September 24
• Portola Valley - September 25
9 Peninsula Clean Energy
Staffing Updates
Welcome!
• Justin Kudo, Associate Director of Rates Strategy; started June 24th • Andy Wang, Data Engineer in our Data/IT Department; starts July 1 • Gaby Ibarra, Buildings Program Concierge; starts July 16 • 4 new interns started in June!
Recent Promotions
• Sara Maatta, Senior Mgr Power Resources
• Mehdi Shahriari, Senior Mgr, Planning & Analytics
• Vanessa Shin, Assoc Mgr, Community Relations
Posted Position
Energy Efficiency Programs Mgr (contract-to-hire)
10 Peninsula Clean Energy
Upcoming Meetings
• Citizens Advisory Committee:
o Thursday, August 8 at 6:30 p.m.
• Audit and Finance Committee:
o Monday, August 12 at 8:30 a.m.
• Executive Committee:
o Monday, August 12 at 10:00 a.m.
• Board of Directors:
o Thursday, August 22 at 6:30 p.m.
No Meetings in July - Enjoy Your Summer Break!
CAC Report (Discussion)
FY 2024-2025
Budget Review and Approval
Peninsula Clean Energy
Schedule – Budget Review and Approval
14 • May 13, 2024 – Review Initial Draft Budget with Audit & Finance Committee • June 10, 2024 – Review Revised Draft Budget with Executive Committee • June 27, 2024 – Approve Final Budget by Board of Directors Peninsula Clean Energy
Product
FY25 Increase
relative to FY24 ($ in '000) FY25 Increases
Energy ($/MWh) 9% Capacity 34,371
REC ($/MWh) 69% Energy 26,681
GHG-Free ($/MWh) 452% Contingency 23,157
RA ($/kW-month) 46% REC/GHG-Free 13,041
Other (815)
Total 96,435
Cost of Energy
• Cost of Energy increase due to:
o Significantly higher REC, GHG-Free and RA prices (see below) o Load increase due to organic growth and normalized weather (~2%) and new commercial load (~3%)
o Contingency (~7% of FY25 costs)
15 ($ in '000) 2023 2024 2025
Actual Forecast Budget $ %
Cost of Energy 265,208 326,969 423,404 96,435 29%
Variance vs FY2024
Peninsula Clean Energy
Expenses
Buildings - Codes 200
Buildings - Existing 15,000
EV - Vehicles 800
EV - Managed Chg 150
EV - Chg (EV Ready) 4,000
EV - Fleet 360
EV - Bike 300
DER - Gov Solar 160
DER - Residential 500
DER - FLEXmarket 2,200
Member Agency Energy Grants 3,000
Other/misc/uncategorized 700
Programs - Expense
• Increase in Programs expense driven by:
o Surplus Funds (member agency grants, school building electrification) o New programs (GovBE, TurnkeyBE, Resi PV+storage)
o Ramp-up in existing programs (Home Upgrades, appliances, EV charging) 16 ($ in '000) 2023 2024 2025
Actual Forecast Budget $ %
Community Energy Programs 7,233 14,221 27,370 13,149 92% Variance vs FY2024
Peninsula Clean Energy
Programs – Revenue and Capital Expense
• Programs expenses offset in part
by external revenues ($5.3 million)
• Expanded capital programs
o GovPV ($21 million)
o Surplus Funds (~$7 million) to
support GovBE and residential
storage
17 Program Revenues
CPUC Revenues (2,300)
Menlo Park CEC Grant (2,000)
Other (CALeVIP return) (950)
Total External Revenues (5,250)
Balance Sheet
Outlay
OBF Capital 3,000
DER-Gov Solar 21,100
GovBE Capital 3,600
Resi Energy Storage 3,000
Inflow
OBF Revenues (950)
DER-Gov Solar (240)
GovBE Revenue (514)
All Revenues & Outlays 23,746
Peninsula Clean Energy
($ in '000) 2023 2024 2025
Actual Forecast Budget $ %
Staff Compensation 8,002 9,765 13,581 3,816 39%
# of FTE 39 53 61
% of Operating Revenues 1.9% 2.1% 2.9%
Variance vs FY2024
Compensation
• Staff compensation increase due to:
o 14 additional headcount in FY24 (3 of which vacancies from 2023) o 8 new headcount proposed in FY25 (4 of which are for the in-house customer contact center)
o Salary increases (average of 5% merit/COLA plus selective, one-time market adjustments)
• Proforma compensation increase of 19% (assuming full staffing in 2024) 18 Peninsula Clean Energy
Other Operating Expenses
• Consultants increase primarily due to Power Resources (battery optimization, transmission, CC Power project and reclass of broker fees)
• Legal support for Power Resources and increased Federal activities • Additional communications expense for branding, marketing, website support and community partner/school grants
• New software across multiple departments
19 ($ in '000) 2023 2024 2025
Actual Forecast Budget $ %
Data Manager 3,604 3,592 3,600 8 0%
Service Fees (PG&E) 1,324 1,333 1,334 1 0%
Consultants & Professional Services 952 1,334 2,145 810 61% Legal 1,206 987 1,394 407 41%
Communications & Noticing 1,329 2,035 2,700 665 33%
General & Administrative 2,284 3,051 4,677 1,626 53%
Depreciation 75 135 339 203 150%
Variance vs FY2024
Peninsula Clean Energy
($ in '000) 2023 2024 2025
Actual Forecast Budget $ %
Electricity Sales 423,844 446,060 451,925 5,865 1%
Green Electricity Premium 3,011 3,003 3,764 761 25%
Non-Energy Revenues 2,152 5,832 6,004 172 3%
Rate Stabilization Fund - (68,000) 15,000 83,000 -122%
Total Revenues 429,008 386,896 476,693 89,797 23%
Variance vs FY2024
Revenues
• 5% increase in base load
• Rates set based on “hybrid” Cost of Service = 3% net discount to PG&E • Recognition of $15 million from the Rate Stabilization Fund provides opportunity to set rates at a 5% net discount to PG&E
• Slightly lower system average rate (-4%)
20 1% increase in sales
excluding impact of the
Rate Stabilization Fund
Peninsula Clean Energy
($ in '000)
Budget Forecast Var - Fav/(Unfav) Budget Increase/(Decrease) Operating Revenues 474,624 454,896 (19,728) 461,693 6,797 Rate Stabilization Fund - (68,000) (68,000) 15,000 83,000 Total Revenues 474,624 386,896 (87,728) 476,693 89,797
Cost of Energy 311,261 326,969 (15,707) 423,404 96,435
Gross Profit 163,363 59,927 (103,436) 53,289 (6,637)
Operating Expenses 39,396 36,454 2,942 57,140 20,686
Operating Income (Loss) 123,967 23,473 (106,378) (3,851) (27,324) Non-Operating Income 645 11,829 11,184 9,103 (2,726)
CHANGE IN NET POSITION 124,612 35,302 (95,194) 5,252 (30,050) 2024 2025
Summary FY25 Budget
21 Peninsula Clean Energy
($ in '000)
Budget Forecast Var - Fav/(Unfav) Budget Increase/(Decrease) Beginning Cash 262,950 253,505 (9,445) 382,090 128,585
(+) Change in Net Position(1) 124,612 103,302 (21,310) (9,748) (113,050) (-) Net Capital Programs 10,400 8,000 (2,400) 29,750 21,750 (+/-) Working Capital - 33,283 33,283 - (33,283)
(=) Ending Cash 377,162 382,090 4,929 342,592 (39,498)
Days Cash on Hand (DCOH) 393 384 (9) 260 (123)
2024 2025
Cash Position
(1) Excludes Rate Stabilization Fund 22
Peninsula Clean Energy
($ in '000) 2025 2026 2027 2028 2029
Budget Forecast Forecast Forecast Forecast
Operating Revenues 461,693 465,087 485,877 468,199 507,085 Rate Stabilization Fund 15,000 53,000 - - -
Total Revenues 476,693 518,087 485,877 468,199 507,085
Cost of Energy 423,404 456,581 417,955 395,243 427,633
Gross Profit 53,289 61,506 67,921 72,956 79,451
Operating Expenses 57,140 67,817 72,631 69,720 82,566
Operating Income (Loss) (3,851) (6,311) (4,710) 3,236 (3,115) Non-Operating Income 9,103 7,820 7,011 7,061 7,110
CHANGE IN NET POSITION 5,252 1,509 2,301 10,297 3,995
Cash 342,592 273,313 270,057 276,135 276,773
DCOH 260 191 202 218 199
5-Year Forecast
Recognition of $68 million from
the Rate Stabilization Fund
DCOH within target of
180-250 days 23
Peninsula Clean Energy
Recommendation
ADOPT RESOLUTION APPROVING THE FISCAL YEAR 2024-2025 BUDGET 24 Appendix
Peninsula Clean Energy
($ in '000)
Budget Forecast Var - Fav/(Unfav) Budget Increase/(Decrease) Electricity Sales 471,671 446,060 (25,611) 451,925 5,865 Green Electricity Premium 2,953 3,003 50 3,764 761
Non-Energy Revenues - 5,832 5,832 6,004 172
Rate Stabilization Fund - (68,000) (68,000) 15,000 83,000 Total Revenues 474,624 386,896 (87,728) 476,693 89,797
Cost of Energy 311,261 326,969 (15,707) 423,404 96,435
Gross Profit 163,363 59,927 (103,436) 53,289 (6,637)
Compensation 10,923 9,765 1,158 13,581 3,816
Data Manager 3,871 3,592 279 3,600 8
Service Fees (PG&E) 1,400 1,333 67 1,334 1
Consultants & Professional Services 1,788 1,334 454 2,145 810 Legal 1,575 987 587 1,394 407
Communications & Noticing 2,851 2,035 816 2,700 665
General & Administrative 4,027 3,051 976 4,677 1,626
Community Energy Programs 12,726 14,221 (1,495) 27,370 13,149 Depreciation 235 135 99 339 203
Operating Expenses 39,396 36,454 2,942 57,140 20,686
Operating Income (Loss) 123,967 23,473 (100,494) (3,851) (27,324) Non-Operating Income 645 11,829 11,184 9,103 (2,726)
CHANGE IN NET POSITION 124,612 35,302 (89,310) 5,252 (30,050) 2024 2025
Detailed FY25 Budget
26 Peninsula Clean Energy
($ in '000) 2023 2024 2025 2026 2027 2028 2029
Actual Forecast Budget Forecast Forecast Forecast Forecast Electricity Sales 423,844 446,060 451,925 446,199 476,600 460,684 489,030 Green Electricity Premium 3,011 3,003 3,764 4,570 4,594 4,619 4,644 Non-Energy Revenue 2,152 5,832 6,004 14,319 4,683 2,897 13,411 Rate Stabilization Fund - (68,000) 15,000 53,000 - - -
Total Revenues 429,008 386,896 476,693 518,087 485,877 468,199 507,085 Cost of Energy 265,208 326,969 423,404 456,581 417,955 395,243 427,633 Gross Profit 163,800 59,927 53,289 61,506 67,921 72,956 79,451 Compensation 8,002 9,765 13,581 16,037 17,278 18,798 20,014 Data Manager 3,604 3,592 3,600 3,600 3,600 3,600 3,600
Service Fees (PG&E) 1,324 1,333 1,334 1,334 1,334 1,334 1,334 Consultants & Professional Services 952 1,334 2,145 2,193 2,231 2,264 2,313 Legal 1,206 987 1,394 1,442 1,493 1,546 1,602
Communications & Noticing 1,329 2,035 2,700 2,129 2,176 2,224 2,274 General & Administrative 2,284 3,051 4,677 4,733 4,973 5,208 5,434 Community Energy Programs 7,233 14,221 27,370 34,830 36,860 32,060 43,310 Depreciation 75 135 339 1,519 2,685 2,685 2,685
Operating Expenses 26,009 36,454 57,140 67,817 72,631 69,720 82,566 Operating Income (Loss) 137,791 23,473 (3,851) (6,311) (4,710) 3,236 (3,115) Non-Operating Income 2,164 11,829 9,103 7,820 7,011 7,061 7,110 CHANGE IN NET POSITION 139,955 35,302 5,252 1,509 2,301 10,297 3,995 Total Cash & Cash Equivalents 254,074 382,090 342,592 273,313 270,057 276,135 276,773 DCOH 319 384 260 191 202 218 199
Detailed 5-Year Forecast
27 Updates to PCE Rate Tables and Rates to
be effective August 1, 2024
Leslie Brown, Director of Account Services
Peninsula Clean Energy
Recommendation
Approve Resolution authorizing PCE staff to recalculate Peninsula Clean Energy ECOplus rates to be set at a net 5% discount to July 1, 2024 PG&E rates based off of the 2016 PCIA and Franchise Fee Surcharges, and apply this rate to all PCE customers effective August 1, 2024.
29 Peninsula Clean Energy
Background
• PG&E will be updating electric rates effective July 1, 2024; actual PG&E rates expected to publish at the end of June.
• PG&E generation rates are expected to decrease system wide by ~11% as a 2023 under-collection surcharge sunsets
• PCE is currently maintaining two rate schedules (Vintage 2016 & Vintage 2022)
• Staff is proposing to move to one rate schedule for all customers with PCE's next rate adjustment taking effect in August, if approved by the Board
30 Peninsula Clean Energy
One vs. Two Rate Schedules for FYE 2025
• Setting one rate schedule aligned with PCE's 2016 Vintage will allow for a minimum 5% discount for customers across all Vintages
o ~95% of PCE customers are assigned Vintage 2016
o ~85% of Los Banos customers are assigned Vintage 2021 o Remaining Los Banos customers are assigned Vintage 2022 and remaining SMC customers have Vintages spread across 2016-2023
• PCE originally set and maintained two rate schedules because the 2016 PCIA was previously lower than 2021 and 2022 Vintage surcharges. • The 2016 surcharges are now higher than later Vintages and all customers can benefit with a discount from one rate schedule calibrated to the 2016 Vintage
31 Peninsula Clean Energy
Current PCIA Vintage Differential 2016 vs 2022
32 Peninsula Clean Energy
Considerations for Moving to One Rate Schedule
• For FYE 2025 PCE would collect more revenue if two rate schedules were implemented (~$1.2M)
o Vintage 2022 rates (predominantly Los Banos customers) would have higher PCE charges if we maintained two rate schedules- PCE would collect more revenue per kWh from customers because of lower PCIA and FFS collected by PG&E
• One rate schedule reduces complexity for both Calpine and PCE with regards to billing operations and maintenance
• Reduced confusion for customers when looking for rates and rate comparisons on our website with one schedule
• Customers with Vintages other than 2016 will have a higher discount 33 Peninsula Clean Energy
Staff Proposal-2024 Rate Update
• Recalibrate PCE rates following PG&E’s July 1, 2024 rate update • Move to one rate schedule applied to all customer based off PCIA 2016 Vintage surcharges
• Net minimum 5% discount is estimated to require allocation of $15M from Rate Stabilization Fund
• New PCE Rates effective August 1, 2024
Questions?
34 Peninsula Clean Energy
Recommendation
Approve Resolution authorizing PCE staff to recalculate Peninsula Clean Energy ECOplus rates to be set at a net 5% discount to July 1, 2024 PG&E rates based off of the 2016 PCIA and Franchise Fee Surcharges and apply this rate to all PCE customers effective August 1, 2024
35 Adjust Premium for ECO100
Effective January 1, 2025
Leslie Brown-Director of Account Services
Board of Directors Meeting June 27, 2024
Peninsula Clean Energy
Recommendation
Approve Resolution authorizing staff to adjust the ECO100 premium to $0.015 kWh (1.5 cents per kWh) to be effective January 1, 2025. 37 Peninsula Clean Energy
Background
• ECO100 has been a Green-e® certified product with a $0.01 premium since PCE launched service
• Review of ECO100 program initially driven by projected changes to Green-e® program
• Green-e® program issues have since resolved
• Program analysis included a ‘true cost’ review with Power Resources 38 Peninsula Clean Energy
Estimated “True” Cost of ECO100 Service
Increasing the ECO100 Premium would increase FY revenues by approximately $1.5M ($750K for FY25 with rates adjusted Jan 1, 2025) Peninsula Clean Energy
ECO100 Customer
Segmentation
ECO100 Sales
Large Commercial and Large Municipal
Res and Small Commerial/Municipal
• 85% of ECO100 sales are to 20 Large
Commercial and Municipal Customers
• 15% of ECO100 sales are to Residential
and Small Com/Municipal accounts
• Current ECO100 annual sales ~$3MM
• Total ECO100 customers ~6,500
Peninsula Clean Energy
Staff Proposal-ECO100 Premium
• Staff is proposing to increase ECO100 premium to 1.5 cents ($0.015) effective January 1, 2025
• Adjusting premium effective January 1 provides plenty of time for staff to create noticing materials for ECO100 customers (minimum 30 days required by Green-e®)
• Adjusting rates on the calendar year also aligns with Green-e® program year and compliance reporting
• A calendar year adjustment will also allow our large commercial customers time to make informed budget decisions for continued participation Questions?
41 Peninsula Clean Energy
Recommendation
Approve Resolution authorizing staff to adjust the ECO100 premium to $0.015 kWh (1.5 cents per kWh) to be effective January 1, 2025 42 Item 13 – Approval of Two
Energy Storage and Services
Agreements (ESSA) for the
Gabriel Storage I & II Projects
Roy Xu, Director of Power Resources
Sara Maatta, Sr. Power Resources Manager
June 27, 2024
Peninsula Clean Energy
Recommendation
Approve Resolution Delegating Authority to the Chief Executive Officer to Execute Two Energy Storage and Services Agreements (ESSA) with San Gabriel Project II, LLC for the Gabriel Storage I & II Projects, and Any Necessary Ancillary Documents, with a Delivery Term of 15 Years Starting at the Commercial Operation Date on or about June 1, 2027, in a Total Amount Not-to-Exceed $208 Million
44 Peninsula Clean Energy
Agenda
1. Project Overview
2. Environmental, Workforce and Community Benefits
3. Expected Operations and Fit in Portfolio
4. CPUC Mid-Term Reliability Procurement Mandate
5. Recommendation
45 Project Overview
Peninsula Clean Energy
Background
• 2023 Request for Proposal: 28 Respondents offered 58 projects • The Gabriel Storage Project was shortlisted for its desirable attributes and overall value to Peninsula Clean Energy
• Negotiation on the Energy Storage and Services Agreement started in early 2023 • Splitting the Gabriel Project into two contracts: a 4-hr system and a 8-hr system • The Gabriel Storage I & II Projects, if approved, will be the fifth and sixth standalone storage resources to be added to Peninsula Clean Energy’s portfolio 47 Peninsula Clean Energy
Gabriel Storage – Project Overview
Project Owner San Gabriel Project II LLC
Developer Aypa Power Development LLC
Location Irwindale, CA
(Los Angeles County)
Technology Lithium-ion battery (4-hour and 8-hour)
Capacity 65 MW 4-hr battery (260 MWh) – Gabriel I
10 MW 8-hr battery (80 MWh) – Gabriel II
Term 15 years
Delivery Start June 1, 2027
Project Site Located in a DAC. The 16 acre site is a
former landfill with inert rubble fill and will
require General Plan and Specific Plan
updates as well as some remediation prior to
development.
Gabriel Storage Project Vicinity Map
Peninsula Clean Energy
Energy Storage and Service Agreement (ESSA)
Structure
• Two separate agreements:
o 65MW, 4-hour contract (Gabriel I)
o 10MW, 8-hour contract (Gabriel II)
• Pay for at a fixed $/kilowatt-month
rate, no escalation
• Contract term: 15 years
• Peninsula Clean Energy will be the
Scheduling Coordinator
• Peninsula Clean Energy is entitled to
all products and attributes from the
facility
49 Storage Charging and
Discharging
Resource Adequacy
Ancillary Services
Mid-Term Reliability
Compliance
Peninsula Clean Energy
Developer – Aypa Power
• The Gabriel Storage Project is being
developed by Aypa Power Development,
LLC, a subsidiary of Aypa Power, a
Blackstone Portfolio Company.
• Aypa Power, develops, owns, and
operates standalone battery storage and
hybrid projects. Currently, Aypa has 365
MW of capacity in operation, and 20 GW
more in development across North
America.
50 Environmental, Workforce
and Community Benefits
Peninsula Clean Energy
Environmental Review
• The site is an existing landfill in an
urban area. The project is developing
clean energy resources on a
brownfield site.
o The Gabriel project is not located
in a protected area based on the
USGS Protected Areas Database
(PAD-US)
• The City of Irwindale has completed a
Draft EIR for the project.
o The impacts due to the energy
storage project are limited to
construction impacts that will be
mitigated.
52 Link to draft EIR: https://www.irwindaleca.gov/DocumentCenter/View/9077/IrwindaleGatewaySpecificPlan-DraftEIR?bidId= Peninsula Clean Energy
Permitting
• The site is currently zoned for Heavy
Manufacturing (M-2). Project development
requires the City of Irwindale to prepare a
General Plan Amendment, Specific Plan,
Zone Change and a Site Plan review.
• Due to the previous use of the site as a
landfill and quarry, site remediation is
required and currently underway; work
includes: removing the inert materials,
processing, and recompacting all materials
to allow for future development.
53 Link to Specific Plan: https://www.irwindaleca.gov/590/13620-Live-Oak-Lane---Irwindale-Gateway- Peninsula Clean Energy
Labor
• Aypa has agreed that the construction of the projects will be conducted using a project labor agreement, or similar agreement, providing for terms and conditions of employment with applicable labor organizations
54 Peninsula Clean Energy
Community Benefits • 184 new construction jobs • 4 new full-time permanent jobs • $86 million in property taxes over project lifetime, of which $18
million is attributed to Peninsula
Clean Energy’s offtake portion
• Development Agreement (in
progress) with the City of Irwindale,
which will include a community
benefit payment
55 Expected Operations and
Fit In Portfolio
Peninsula Clean Energy
Battery Charge/Discharge Profile (2028)
57 Peninsula Clean Energy
Contribution to Portfolio - Seasonal (2027)
58 CPUC Mid-Term Reliability
Procurement Mandate
Peninsula Clean Energy
Procurement Category 2023 2024 2025 2026 2027 2028 Total New Generic Capacity 38 113 51.4 35 35 - 272.4
Zero-emissions generation, generation paired with
storage, or demand response resources2
- - 47 - - - 47
New firm zero-emitting resources - - - - - 19 19
New long-duration storage resources3 - - - - - 19 19
Total Annual Net Qualifying Capacity (NQC) Requirements 38 113 51.4 35 35 38 310.4 Peninsula Clean Energy MTR Requirement
60 1. Obligation is in NQC MW (not nameplate) and subject to ELCC factor
2. Zero-emissions resources required to replace Diablo Canyon must be procured by 2025 and are a subset of New Capacity Required and may occur in any of the years 2023-2025; therefore, this row is now additive with the others.
3. Minimum 8-hour discharge
Procurement Obligation in NQC1 MW for Peninsula Clean Energy by Category and Year (Gabriel Storage I & II will contribute to the generic 2027 and the long-duration storage requirements) Recommendations
Peninsula Clean Energy
Recommendation
Approve Resolution Delegating Authority to the Chief Executive Officer to Execute Two Energy Storage and Services Agreements (ESSA) with San Gabriel Project II, LLC for the Gabriel Storage I & II Projects, and Any Necessary Ancillary Documents, with a Delivery Term of 15 Years Starting at the Commercial Operation Date on or about June 1, 2027, in a Total Amount Not-to-Exceed $208 Million
62 Proposed Administrative Updates to the
Joint Powers Authority (JPA) Agreement (Action)
Shawn Marshall, CEO
Nelly Wogberg, Board Clerk
Peninsula Clean Energy
Background and Context
• In reviewing and updating language in policies 14, 15 and 16, Staff identified several elements of the JPA Agreement that were outdated, duplicative and/or in need of clarification.
• JPA Amendments proposed are primarily administrative/operational in nature
• Once the Board approves the proposed amendments, the revised JPA Agreement will be sent to member agencies for a 30-day comment period before final Board approval.
64 Peninsula Clean Energy
Proposed JPA Updates
1) Section 3.1.1 Directors Emeritus. Move to Policy 16
2) Section 3.3.7 Add Board authorities for CPUC, FERC, and other agency filings 3) Section 3.4 Move dollar value of CEO contract authority to Policy 14 4) Section 3.9.1 Update officer term limits from a maximum of three years to two years to better align with local election cycles
5) Section 6.1.1 Update Right to Withdraw from 6 to 12 months to better align with current RA rules
6) Section 5.3.1 Update Budget language to reflect current practice 65 Peninsula Clean Energy
Recommendation
Approve the proposed administrative edits to PCE's Joint Powers Agreement and authorize 30 day comment period.
66 Committee Members’ Reports
Peninsula Clean Energy
Closed Session
Peninsula Clean Energy
Adjournment
Peninsula Clean Energy