Peninsula Clean Energy
Board of Directors
Meeting
March 27, 2025
This meeting will begin shortly. Thank you!
Agenda
Call to Order / Roll Call
Public Comment (for items not on the Agenda)
• Please note, send any chats to Administrative Assistant, Brianna Arroyo Action to set the Agenda and Approve Consent Items 1-3
• Consent - Public Comment
Regular Agenda
Adjournment
Chair Report (Discussion)
CEO Report (Discussion)
CEO Report: Legislative Update
March 17 Assembly and March 26 Senate: Last opportunity to amend spot bills April 10 – 21 Spring Legislative Recess
Pathways Initiative: SB 540 (Becker)
• April Board Presentation by CalCCA Policy Director
Wildfire Package: AB 306 (Schultz)
• Heading for a floor vote
Caltrain/Regenerative Breaking: AB 1285 (Papan)
• PCE/SJCE working with staff to resolve issue and remove CCAs from the bill BESS: AB 303 (Addis)/SB 283 (Laird)/AB 1285 (Mult. Authors) • CalCCA has taken an oppose position on AB 303
5 CEO Report: FY 2025-2026 Budget Process
6 • Budget Season is Upon Us!
• Department Directors are working on their budget projections now • Executive Team/Directors' Budget Meeting on April 16
• Draft Budget presented to Audit and Finance Committee on May 12 • Final/Proposed Budget to Audit and Finance/Executive Cmtes on June 9 • Budget Adoption by Board of Directors on June 26
CEO Report: Community Benefit Materials
Information about PCE benefits for your jurisdiction will be sent by email to you and your City Managers tomorrow, March 28
These materials include annual metrics for energy bill savings and greenhouse gas emissions reduced from electricity
Appreciate a share out with your Council/Supervisor colleagues and with your communications teams for your local websites and newsletters
April 2025
Discussion of Phase 1 edits with
Board Ad-hoc, CAC Ad-hoc, and
Executive Committee
Discussion of Phase 2 with
Board Ad-hoc, CAC Ad-hoc,
and Executive Committee
Early August 2025
August 2025 BOD Meeting
Board Discussion on
Phase 2 (5-Year Agency
Goals)
Close out of 2020-2025
Strategic Plan
September 2025
Staff working on 5-year
Agency Goals and Objectives
and Key Results (OKRs)
Summer 2025
Board approval of Final
2026-2030 Strategic Plan
October 2025 BOD Meeting
Discussion of all pieces to 2026-
2030 Strategic Plan with Board
Ad-hoc, CAC, and Executive
Committee
Early October 2025
Board Discussion on
Phase 1 edits
May 2025 BOD Meeting
CEO Report: 2026-2030 Strategic Plan Timeline
PCE "EV Ready"
Program Recent
Highlights
Record-breaking EV charging at
apartment and condo properties
• 92 smart outlets at
Woodland Creek Condos,
East Palo Alto
• All residents covered
• Cost to customer (after
incentives): $400/charger
EV Ready Program Successes
4th largest multi-family EV charging project in the state! But wait, there’s more!!
EV Ready Program Successes
3rd largest multi-family EV charging project in the state! • 140 smart outlets at Edgeview Terrace Apts. (Daly City) • All residents covered
• Under construction
But wait, there’s more!!
EV Ready Program Successes
2nd largest multi-family EV charging project in the state! • 143 smart outlets at Bayview Condos (Millbrae/Burlingame) • All residents covered
• $0 cost to customer (after incentives)
But wait, there’s more!!
EV Ready Program Successes
1st largest multi-family EV charging project in the nation! • 200+ smart outlets at Peninsula Pines Apts.
(South SF)
• All residents covered
• Construction starting soon
EV Ready Program Successes
PCE's Proven Strategy for EV Charging
• 1,500+ chargers installed
• 70%+ at multi-family properties
• Right-size EV charging allows
greater scaling
• Cost-effective PCE incentives
CEO Report: April Community Events
15 • April 2 - Electricity Career Panel at Skyline College, San Mateo County • April 12 - Earth Day, Foster City
• April 12 - 4th Annual Egg Hunt, Los Banos
• April 16 - Canada College Earth Fest, Redwood City
• April 22 - College of San Mateo Earth Fest, San Mateo • April 22 - Earth Day Resource Day, Half Moon Bay
• April 23 - Skyline College Earth Fest, San Bruno
• April 23 - Gilead Earth Day, Foster City
• April 24 - Panel Careers for a Sustainable World, Virtual • April 26 - Earth Day of Action and Pelican Fest, Pacifica • April 26 - Love Our Earth Festival, Menlo Park
• April 27 - Eco Fest, Millbrae
• April 27 - Earth Day, Atherton
April is Earth Day Month! Let
us know if you would like to
come table with us.
CEO Report: Staffing Updates
Announcing PCE's Summer Internships – Apply by April 15:
• Account Services - Data Analyst
• Programs - Municipal Electrification Program
• Marketing and Community Research
• Power Resources - Energy Analysis and Resource Planning 16 Upcoming Meetings – April 2025
Community Advisory Committee:
• Thursday, April 10 at 6:30 p.m.
Executive Committee:
• Monday, April 14 at 10:00 a.m.
Board of Directors Meeting:
• Thursday, April 24 at 6:30 p.m.
Audit and Finance Committee:
• Monday, May 12 at 8:30 a.m.
Community Advisory Committee
Report
Study Session:
PCE Energy 101
Board of Directors
March 27, 2025
Peninsula Clean Energy and the Electricity Grid
20 Peninsula Clean Energy
procures clean energy
from renewable resources
PCE customers
receive energy from
the grid
The Electricity Grid
transmits and
distributes energy
Load = Electricity Consumption
~490 MW
1 MW = 1,000 kW
490 MW = 490,000 kW
Units Explained: MW to MWh
22 490,000 kW x 1 hour = 490,000kWh or 490MWh
Capacity (kW) x Time (hour)
= Energy (kWh) or Amount of Electricity Used
Analogy:
Size of nozzle or rate of water flow x Time
= Amount of water used
1 Hour 1 Year = 8,760 Hours
490 MWh PCE Load =3,403,000 MWh or 3,403 GWh
PCE’s Annual Load ~ 1.5% of system load on our grid
PCE’s Annual Load
Year Forecasted Load
(GWh)
2024 3,403 (act.)
2025 3,559
2026 3,604
2027 3,670
2028 3,794
The California Grid
23 • The CA grid is composed of multiple Balancing
Authorities and the CA Independent System
Operator (CAISO) is the largest one, serving 80%
of the State.
• A Balancing Authority manages the flow of
electricity across high-voltage power lines, balances
loads and generations on the system and maintains
grid reliability.
• PCE operates within the CAISO.
• Investors-Owned Utilities
• Public-Owned Utilities
•CCA (PCE)
• Energy Service Providers
Load
Serving
Entities
(LSE)
Source: CAISO
Western Interconnection
24 • Spans 1.8 million square miles across 14 States,
British Columbia and Alberta, and the northern part
of Baja California in Mexico.
• Interconnected by 136,000 miles of transmission
lines.
Source: CAISO/Brattle Group
CAISO
Export
CAISO – A Centralized Wholesale Energy Market
Fossil fuel
plants
Renewables
Customer
Load
Customer
Load
25 • All generations injected into the CAISO
• All consumptions drawn from the CAISO
• The CAISO acts as a clearinghouse
• Market runs 24/7 non-stop
• Different locations on the grid have
different market prices
OBJECTIVE:
Procure and supply enough
generation to the grid to match
PCE’s load or demand
Energy Settlement Through the Market - Example
26 PCE Load = 100 MWh
Mkt Price= $100/MWh
(DLAP)
PCE Gen = 100 MWh
Mkt Price = $90/MWh
(P-node)
Pays CAISO
$10,000
Paid by CAISO
$9,000
Energy Flow
Energy Flow
Pays PPA Cost: $40 x 100MWh = $4,000
PPA Cost Mkt Cost Mkt Rev. Net Cost
Settlement $4,000 $10,000 -$9,000 $5,000
Congestion Cost = $1,000
PCE's Resource Portfolio (Contracted & Operational)
*Short-term Large Hydro Purchases are not shown in this figure PCE Load & Resources
28 2021 2024
2024 Resource Mix
Products PCE Procures
30 Energy RA
REC MTR
1 Renewable Energy Credit (REC) = 1MWh of
energy generated by an eligible renewable resource
and delivered to the grid.
Resource Adequacy (RA) is a compliance
requirement for each LSE to demonstrate it has
enough generation capacity to serve its monthly
peak load plus a planning reserve margin.
1 Carbon Free Attribute (CF) = 1MWh of energy
generated by a carbon free resource and delivered
to the grid.
CF
Mid-term Reliability Order (MTR) is CPUC-mandated procurements of new capacity to support reliability in the near to mid-term given expected
load growth and power plant retirements.
Procurement Types and Channels
31 Energy RA
REC MTR
CF
Request for Offer (RFO)
Bilateral Engagement
Joint Procurement through
CC Power
Energy RA REC
Long-Term Bundled Transaction
Board Approval Required
Short-Term Product Transaction
Governed by Energy Risk Management Policy
PCE’s Procurement Puzzle
32 PRIORITIES
Serving Load
Compliance
ECO Plus/100
Renewable 100% Annual
Renewable 24/7 Hourly
PRODUCTS/INSTRUMENTS
Energy
PCC-1 REC RA MTR
PCC-1 REC
Procurement
Strategies
Who?
Where?
What?
When?
How?
Financial Stability / Affordability Cost of Energy < Revenue (Rates & PCIA) Carbon Free
PCC-1 REC
“24/7
Products”
+Risk
PCC-1 REC
* 90% of Budget
CRR
Questions?
Managing
Volatility
March 27, 2025
Overview
Cost of
Energy
Volatility
PCIA and
Revenue
Volatility
Cash
Flow
Volatility
35 Cost of Energy Volatility
Extreme Weather
Inflation & Interest Rates
Supply Chain & Labor Shortage
Interconnection Delays
Regulatory Changes
Additional Tariff
Tax Credits Uncertainty
New Demand
RISK
FACTORS
36 Electricity Market Price
37 RA and REC Market Prices
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$/lw-mo
2025 RA Price as of
2025 RA Market Price
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
$/MWh
2025 REC Price as of
2025 REC Market Price
38 PCE Forecasted Cost of Energy
39 Power Charge Indifference Adjustment (PCIA)
The PCIA is a fee which assigns “above-market” portfolio costs to CCA customers, principally to ensure customer departures don't raise rates for remaining customers 40 Why Market Price Matters
PG&E Portfolio Cost
– Market Value
PCIA Cost
Lower market prices
→ higher PCIA
(and vice versa)
$-
$20
$40
$60
$80
$100
$120
High Market Prices Low Market Prices
Total Portfolio Cost
Below Market Above Market (PCIA)
Market Value
41 Impact of Market Prices and PCIA on PCE Rates
$0.030
$0.010
$0.063
$0.104
$-
$0.020
$0.040
$0.060
$0.080
$0.100
$0.120
$0.140
PG&E
Generation
Rate
PCIA Current
Discount
(10%)
PCE
Generation
Rate
Low Market Prices / High PCIA
$0.014
$0.123
$0.136
0 0.02
0.04 0.06
0.08 0.1
0.12 0.14
PG&E
Generation
Rate
PCIA ($0) Current
Discount
(10%)
PCE
Generation
Rate
$/kWh
High Market Prices / Low PCIA
42 PG&E Rate and PCIA Forecasting
Confidence
Interval
Data Points
March Low Forward market price trends
May Low PG&E forecast update (uses old data)
CPUC proposed decision on capacity market
September Medium Volatile summer prices available
October High PG&E forecast update (uses new data)
December
31 Certain Final rates published by PG&E
Revenue projections are data-driven, but challenging as budget precedes most critical market data
43 Historical and Projected PCIA Rates
$0.029
$0.034 $0.034
$0.032
$0.047
$0.019
$0.003
$0.010
$0.011 $0.006
$0.026
$0.046
$-
$0.005
$0.010
$0.015
$0.020
$0.025
$0.030
$0.035
$0.040
$0.045
$0.050
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
$/kWh
Historical PCIA PCIA Low PCIA Mid PCIA High
44 Historical and Projected Annual PCIA Costs
$84
$121 $120 $109
$156
$81
$11
$36 $36
$21
$90
$160
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
(Est.)
Millions
Estimated PCIA Paid Forecast PCIA Low PCIA Mid PCIA High 45 Conclusion
$389
$343
$273 $270 $276 $277
393
260
190 201 217 198
0 100
200
300
400
500
FY23-24
Actual
FY24-25 FY25-26 FY26-27 FY27-28 FY28-29
Cash (in millions) DCOH
Board-approved
DCOH range (180-
250 days)
• Energy markets and the PCIA
are very volatile, resulting in
cash flow uncertainty
• PCE maintains an appropriate
cash balance to help manage
such risks
• Days Cash on Hand (DCOH)
range of 180-250
• Current cash position, while
higher than the range, will help
PCE stabilize rates over the next
few years and ensure sufficient
liquidity
46 Graph based on 5-year forecast presented to the Board in June 2024 47 Appendix
Impact of Volatility on Rate Competitiveness
$0.080
$0.061
$0.125
$0.145
$0.158
$0.139
$0.074
$0.105
$0.138
$-
$0.02
$0.04
$0.06
$0.08
$0.10
$0.12
$0.14
$0.16
$0.18
2020 2021 2022 2023 2024 2025 2026
PG&E Gen Rate (incl. PCIA)
$/kWh
Parity Rate Low Mid High
Reducing PCE rates by $0.01/kWh is equivalent to $37.5 M in revenue 48 48
Board Members’ Reports
Peninsula Clean Energy
Adjournment
Peninsula Clean Energy