Peninsula Clean Energy
Executive Committee
Meeting
April 14, 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 Item 1
• Consent - Public Comment
Regular Agenda
Adjournment
Chair Report (Discussion)
Chair Report: 2025 Board Ad-Hoc Committee
Standing Committee Evaluation. Recommend establishment of a 6-7month Board Ad-Hoc Committee to review the scope, operations and effectiveness of PCE's standing/Brown Act committees to ensure optimal functionality and value/service to the Agency over the next 5 years. a) CAC, Exec Committee, Audit and Finance
b) Will benchmark against other CCA best practices
c) May involve brief surveys/interviews
d) Evaluation of the Committees as units of PCE governance; not focused on participants e) May result in some amendments to Policy 16: Board and Committee Operations Board of Directors Survey. Recommend survey of the full Board to receive feedback on Board operations, staff service and support, suggested changes/improvements, etc. a) Last Board survey was conducted in July 2023
Proposed Ad-Hoc Committee Members. Donna Colson, Marty Medina, Colleen Mackin, Leslie Ragsdale, Craig Taylor
4 CEO Report (Discussion)
CEO Report: A Grab Bag of Agency Updates
• PCE Insurance Policy – Expanded Cyber Coverage; total annual cost of $237,000 • Summer Intern Deadline is April 15
• Wright BESS Project Update
• AB 942 – Potential Changes to NEM 1.0/2.0
• SB 540 - Briefing at April Board meeting; letter of support has been filed • New - Department of Innovation Strategy
6 CEO Report: Innovation Strategy Department
7 1) Organizational strategy – Supporting executive leadership on specific organizational strategy objectives, such as the strategic plan. 2) Innovation and new areas of work – Supporting PCE’s early-stage investigation and initial implementation of advanced energy initiatives that require cross-department strategy development and project management. 3) Revenue diversification – Working across relevant departments, diversifying PCE’s program revenues via public funding opportunities as well as new business models. 4) Subject matter expertise – Follow cutting-edge energy trends in California and function as a subject matter expert to augment existing staff expertise in the areas of programs and policy.
Peninsula Clean Energy
Board Executive Committee
Meeting
April 14, 2025
What we’ll cover
• Why we’re updating our mission & vision
• The job done by the mission & vision
• Key inputs + opportunities to shape the mission & vision • Three mission & vision options for your feedback
Why Refresh PCE’s Mission & Vision?
● Align with our Strategic Plan update
● Reflect our brand refresh
● Reconnect to purpose, impact, and future direction
Strategic Plan
Brand refresh
The role of the mission & vision
Mission: The What and Why of PCE
● Clearly articulates purpose and
impact
● Motivates and unites our team
● Resonates with customers and
communities
Vision: The future
● Defines the future we’re working
toward
● Reflects equity, innovation, and
prosperity
● Aligns all stakeholders around
our long-term impact
Current Mission
“Our mission is to reduce greenhouse gas
emissions by expanding access to sustainable
and affordable energy solutions.”
Opportunities to grow
● From process to impact (focus on outcomes like health, prosperity) ● Add adaptability: innovation, climate resilience
● Reflect customer-centricity: equity, affordability, experience Which direction
resonates most?
Mission A
“PCE is leading the way to a carbon-free future
by delivering innovative and affordable clean
energy solutions, supporting equitable
community growth, and driving environmental
progress.”
Mission B
“We unleash the potential of clean energy,
transforming it into power that uplifts every
neighborhood. We are committed to ensuring
everyone benefits from a healthier, more
sustainable, and economically vibrant future.”
Mission C
“PCE delivers affordable, clean electricity and
supports local solutions that lower costs,
reduce pollution, and strengthen community
resilience.”
Current Vision
“Our vision is a sustainable world with
clean energy for everyone.”
Opportunities to evolve
● Emphasize leadership and innovation
● Make equity and resilience more central
● Describe a future that’s abundant, thriving, and shared What future do
we want to
align behind?
Vision A
“A carbon-free tomorrow where every home
and business thrives—through clean energy
that’s accessible, affordable, and supports
resilient communities.”
Vision B
“A future where clean energy powers
prosperity and resilience in every community—
so that everyone has the opportunity to
thrive.”
Vision C
“A resilient, carbon-free future where clean,
affordable energy helps every
neighborhood thrive.”
What happens next?
Briefings Feedback Refinement Board Vote
Forms sent via email:
https://forms.gle/PKRLXxkscBTKfXDi7
Guiding
Principles
26 27
Environmental Impact. PCE was founded on the vision of a sustainable world for everyone; a world in which energy choice could dramatically reduce harmful greenhouse gas emissions by accelerating the transition from a fossil-based grid to one that runs on carbon-free and renewable resources. PCE will continue to be champions for the environment in its procurement and program initiatives. PCE will expand its focus to include environmental justice in its decision-making and new clean energy technologies that leverage local renewables to support energy resilience and reliability.
Customer-Centric Approach. PCE would not exist without its customers. Keeping customer needs at the forefront of decision-making and program design is central to its continued success and will be at the core of what will differentiate PCE from other providers in the future. PCE’s customers are not only the clients it serves, they are also PCE’s critical partners in the transition to a clean energy future.
Guiding Principles
28 Economic Development. In its quest to expand renewable energy production, support electrification, and reduce greenhouse gases, PCE will also serve as an economic engine for its service area. It will do this by considering affordability in rate-setting, investing in local decarbonization and electrification efforts, supporting the development of new renewable projects (additionality), and expanding the “green economy” including local workforce development and local jobs.
Driving Innovation. PCE will continue to be an innovator and thought leader in the CCA industry — recognized locally, statewide and nationally for its leading-edge renewable procurement strategies, scalable and replicable building and transportation policies and programs, workforce DEAI initiatives, and piloted distributed energy resource and advanced energy projects that can be replicated for greatest environmental, economic, and customer impact — and that show the way towards broad market change.
Guiding Principles
Strategic
Policies
29 30
Over the next five years, PCE will advance operational infrastructure, systems, and processes to deliver outstanding customer service, empower staff, and enable efficiencies that will increase its mission impact.
More specifically, PCE will continuously improve and invest in its people, operational infrastructure, systems, and processes to enhance efficiency, resiliency, and adaptability. PCE’s policy is to ensure that its operations are aligned with best practices in the industry; leverage technological advancements; support a high-performing workforce that is equipped to meet the evolving needs of customers and stakeholders; and achieve its diversity, equity, access, and inclusion commitments.
Operational enhancements will be driven by the need to enhance PCE’s ability to partner effectively with the customers and communities it serves and to advance the organization’s mission impact. This policy encompasses the following key elements:
▪ Scalable Process Optimization. Continuously refine operational processes to improve workflow efficiency and reduce administrative burdens while investing in scalable technology solutions that can grow with PCE’s expanding programs and services to improve customer experience. ▪ Empowered and Agile Workforce. Provide its diverse workforce with the necessary training and resources to drive innovation, enhance collaboration, and maintain operational excellence in a rapidly evolving energy landscape.
Strategic Policy: Operational Excellence
31 ▪ Data-Driven Decision-Making. Leverage data analytics and automation to drive informed decisions, streamline operations, reduce costs, maintain a strong financial position, and continuously improve overall efficiency across the organization to better serve all of its customers. ▪ Cybersecurity and IT Resilience. Establish and maintain comprehensive cybersecurity measures and continuously strengthen IT infrastructure to protect customer data and sensitive information, ensure system reliability, and safeguard against emerging threats. ▪ Equity and Accessibility in Operations. Maintain efficient operations that also ensure the needs of all stakeholder segments are met. In particular, consider how operations can enhance access for equity customers by addressing language, ability, financial, and other needs. ▪ Effectively Managing Risk and Maintaining Compliance. Maintain PCE’s operational policies, conduct regular audits, and ensure adherence to legal and industry standards while navigating policy and market challenges and maintaining autonomy and financial stability.
Strategic Policy: Operational Excellence
Maintain a 100% zero-carbon power resource portfolio while working towards delivering 100% renewable energy on an annual basis by 2030 through strategic and cost-effective procurement of resources that maximize PCE’s 24/7 hourly matching of renewable energy and load.
This policy statement encompasses the following key elements:
▪ Continued commitment to achieving industry-leading renewable energy targets. ▪ Built-in flexibility on the 24/7 hourly matching goal to balance against potential cost impacts on PCE’s customers.
▪ An emphasis on strategic procurement to minimize cost and risk exposure to PCE, minimize cost pressures for customers, and maintain PCE’s financial health. ▪ A target of 60% minimum Renewable Portfolio Standard (RPS) of PCE's annual retail sales prior to 2030, with flexibility on the remaining portfolio composition to balance incremental gains toward the 100% renewable goal while maintaining cost competitiveness with PG&E. 32 Strategic Policy: Procurement
33 Equity/vulnerable communities are disproportionally impacted by the harms of climate change and frequently face barriers to receiving the benefits of market transformation. PCE’s policy is to reduce GHGs as quickly as possible by continuing to deliver programs and services that benefit a range of PCE customers, including designing certain programs and services with equity and/or vulnerable customers’ needs in mind by:
▪ Prioritizing rate affordability for all customers and offering targeted discounts for some equity customer segments with greatest need.
▪ Offering certain programs specifically designed for equity customers and, where programs have broad customer participation, providing tiered levels of support that enhance access and assistance for more vulnerable customers.
▪ Initiating policy initiatives and seeking third-party funding for equity programs that benefit vulnerable/equity customers and improve affordability and access to PCE services and benefits. ▪ Engaging equity customers and communities by working with community-based organization (CBO) partners to support equity customers, engage diverse and vulnerable communities, and solicit feedback on ways to improve PCE’s equity services.
Strategic Policy: Programs & Equity
Next Steps
▪ Solicit feedback from the Ad Hoc Strategic
Planning Committee (done)
▪ Solicit feedback from Board Executive
Committee (today)
▪ Solicit feedback from CAC Strategic Planning
Subcommittee
▪ Incorporate feedback
▪ Present strategy roadmap to board in May for
discussion; approval will follow in October with
full strategic plan
34 Thank you! Lester Olmstead-Rose
[email protected]
35 CPUC FLEXMarket Plan
Recommendation
Shelby Bush, Energy Efficiency
Programs Manager
Request
Recommend to the Board of Directors to Approve
the Program Plan for the California Public Utilities
Commission (CPUC) funded FLEXmarket Program.
FLEXmarket Overview
Overview
• Multi-technology load shaping program
• Pay-for-performance based on metered results
• Must meet CPUC cost-effectiveness metrics
• All program expenses reimbursed by the CPUC
• Other CCAs have run similar programs (MCE, SCP)
Objectives
• Offer a commercial energy efficiency program
• Align load with grid needs
• Second round to improve implementation with round one learnings Marketplace Architecture
AMI Data Price Register
Programs
Marketplace Platform
First round
Successes
• 11 commercial customers served, 1.24 million kWh saved • Measured savings exceeding forecasts by 30%
• 10% summer peak reduction at site
Lessons learned
• Balancing price signal with cost-effectiveness
• Implementing partner operation refinements
• CPUC requirements such as reporting
CPUC Background
• PCE’s FLEXmarket is fully funded by the California
Public Utilities Commission (CPUC)
• Board approved PCE FLEXMarket Nov. 2021
• PCE has operated FLEXMarket since 2022
• Current program funding cycle ends May 2025
• Seeking $2.9 million dollars from the CPUC to
fund the FLEXMarket 2025-2028
• CPUC requires CCA board approval of program plan
Next Steps
42 Timeframe Activity
Apr 2025 PCE EC recommends approval of FLEXMarket Program Plan PCE Board approves FlexMarket Program Plan
May 2025 PCE submits FLEXmarket Program Plan to CPUC
Summer 2025 Contract refinements
Q3 2025 CPUC approves PCE’s proposal (up to $2.9/3 years) Fall 2025 Re-engage providers and launch
Recommendation
Recommend to the Board of Directors to Approve
the Program Plan for the California Public Utilities
Commission (CPUC) funded FLEXmarket Program.
Distributed
Energy Resource
(DER)
Framework
April 14, 2025
1. Programs Overview
2. Strategic Plan
3. DER Definitions
4. DER Benefits and Barriers
5. 2025 – 2030 DER Goals
Agenda
Programs Overview
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 and business
models for CA to adopt
to
2. Mobilize market forces
to support
decarbonization
47 Transportation (Not-in-Scope)
13%
Transportation (In-Scope)
41%
Building Methane (In-Scope)
24%
Building Methane
(Not-in-Scope)
7% Electricity (Non-PCE)
2%
Water
0%
Wastewater
0%
Solid Waste
8%
Stationary Sources
5%
San Mateo Countywide Greenhouse Gas Emissions,
2035 Analysis: Board Approved Decarb Scope for PCE
Focus on segments PCE
is best positioned to influence
• Transportation
• Private passenger
• Small fleets
• Buildings
• Single-family residential
• Office
48 Heavy duty vehicles, etc.
Restaurants,
industrial, etc.
Existing Programs Portfolio
*
*
+
+
* Low-income program + Includes low-income benefits
Since inception: $60M
investment (incentive &
capital)
Statewide impact:
• Reach codes: set
standard for clean buildings
and EV readiness, now in
state code
• Cost-effectiveness
through right-sizing: ex.
80% lower cost for apt. EV
charging
• Innovation: tech,
methods, business models.
Market maturity differs for each solution
50 • Needs change over time as
market matures/transforms
• Over time increase emphasis on
low-income and target barriers
Our position
• Solar & storage supported
without incentives
• EVs (& ebikes) focus on equity
• Buildings & EV charging in
multi-family need most support
Buildings
EVs
Solar
How Major Programs Meet Our Objectives
Other smaller programs: Used EV, ebikes: equity; GovBE & GovEV: GHG & mbr svcs; FLEXmarket: commercial EE Reach codes
Residential electrification
EV charging
GovPV solar & storage
Residential solar & storage
(forthcoming)
GHG reduction
Equity
Affordability
Resilience
Grid services
Strategic Challenges
1. High Utility Rates/Lack of Affordability
• PG&E territory has some of the highest utility rates in the country • Adversely impacting customer economics, trust and electrification benefits
2. Air District Rules
• New rules to ban gas appliances starting 2027 – priority need: affordability
3. Access to Capital
• Developing approach to deployment of solutions at scale
4. Power Outages
• Power outages are creating both real and perceived customer problems resulting in reticence to electrify
52 DERs as key solution
• Distributed Energy Resources (DERs) are (clean) energy assets on the distribution grid
• DERs provide significant opportunities to address the strategic challenges through improved economics
• PCE framework establishes objectives within new Strategic Plan • Part 1 was presented to Executive Committee Oct 2023
• Definitions, scale and objectives
• Complete framework presented here
DER Framework 2025 - 2030
PCE Strategic Plan
As part of its Strategic Plan, PCE has developed four Strategic Policies that describe priorities to guide PCE’s work over the next five years. The following DER Strategic Policy has been developed:
Over the next five years, PCE will prioritize efforts to accelerate the development of carbon-free distributed energy resources (DERs) in order to support further innovation and market transformation of distributed energy technologies, accelerate greenhouse gas (GHG) reductions, and provide customer and community resilience.
Potential activities:
• DER Project Development
• Financial Services
• Consulting & Technical Assistance
• Policy Advocacy
This DER Framework further develops the proposed DER activities for 2025 – 2030 DER Definitions and Scale
Front-of-the-Meter (FTM)
projects, on transmission grid
FTM DERs, connected to
the distribution grid
Behind-the-meter (BTM)
projects, at customer sites
Currently available in service territory:
• BTM: ~30 MW shift potential (batteries, EVs, etc.)
• FTM: 11 MW in territory
Virtual Power Plants (VPP): aggregation of DERs for
grid services
DER Benefits and Barriers
Benefits of DERs
Customer
Benefits
• Lower energy costs
• Improve electrification financials
• Provide resilience
PCE Benefits
• Support PCE's renewable energy and GHG goals
• Reduce energy and Resource Adequacy (RA)
costs
• Deepen customer relationships
Grid and
Societal
Benefits
• Defer distribution grid upgrade needs
• Support local economic development
Barriers to DER Deployment
• Customer adoption: Dispatchable technologies are in early stages of adoption. Awareness varies and uptake is difficult to secure. • Upfront costs & capital: Significant added costs in many cases, financing can be inaccessible.
• Value stack access: Economics vary. Would improve if more grid value was unlocked.
• Complexity: For VPPs, technology and market is fragmented and complex. • Permitting and interconnection: Deployment timelines vary substantially.
Permitting and interconnections can be onerous.
2025 – 2030 DER Goals
DER Goals
1. Grow PCE’s behind-the-meter Local Power Portfolio by 15 MW of solar and 35 MWh of storage capacity leveraging scalable and self-sustaining financing solutions
2. Move towards a Whole-Home Energy Approach by integrating electrification, solar + storage, and EV offerings in a streamlined manner in major PCE program
3. Develop a Virtual Power Plant (VPP) that aggregates 10 MW of dispatchable capacity from customer-sited resources in PCE’s service area to the benefit of the customer, PCE and the grid
4. Explore business models to foster the development of front-of-the-meter Distribution Resources in PCE’s service area
5. Investigate additional behind-the-meter DER ownership models for DER growth
6. Make PCE DER programs more accessible to customers through technical assistance services
7. Engage in policy advocacy on DER value maximization and value stacking Grow PCE’s behind-the-meter Local Power Portfolio by 15 MW of solar and 35 MWh of storage capacity leveraging scalable and self-sustaining financing solutions • Target for local projects that PCE
can influence.
• Programs supporting this goal
include GovPV and a Residential
Solar + Storage Program
• Key objective: develop self-sustaining approach including third-party finance and net
financials to support growth
Move programs towards a Whole-Home Energy Approach integrated electrification, solar + storage, and EV offerings
• To date, different PCE programs support
different technologies
• In the future, PCE will move towards offering
a suite of DERs (electrification measures,
solar + storage, and EV readiness) to
customers under one integrated approach for
both residential and non-residential customers
• This will support a customer-centric approach
with streamlined DER offerings and improved
overall economic value
Develop a Virtual Power Plant (VPP) that aggregates 10 MW of dispatchable capacity from customer-sited resources in PCE’s service area to the benefit of the customer, PCE and the grid • VPPs use a Distributed Energy Resource Management System (DERMS) to control devices at a customer site
• A DERMS is a centralized software system that monitors, controls, and optimizes BTM DERs to provide reliable, clean, and cost-effective power
Explore business models to foster the development of front-of-the-meter Distribution Resources in PCE’s service area
Focus on the “Missing middle”; i.e., 1-10 MW distribution-connected, FTM resources, preferably in PCE’s service area
• Community solar + storage
• Community-scale, multi-customer microgrids
Examples/ opportunities
1. Community Renewable Energy (CRE) Program (leveraging federal IRA funds under the EPA’s Solar for All grant)
2. Microgrid Incentive Program (MIP) - $18 million from PG&E
3. Policy Advocacy on improved value stacking
Additional Goals
Investigate additional behind-the-meter DER ownership models • Asset ownership for equitable rate setting and controls • Offerings such as Energy Service Agreements (ESAs) and third-party capital Make PCE DER programs more accessible to customers through technical assistance services
• Build out Concierge and Consulting services
Engage in policy advocacy on DER value maximization and value stacking • Access resource Adequacy and distribution deferral value • Reduce interconnection and energization timelines
• Enable Vehicle to Grid (V2G) integration
Questions and
Comments
Rafael Reyes
[email protected]
Jana Kopyciok-Lande
[email protected]
Peter Levitt
[email protected]
Appendix
Statewide Impact of PCE Programs
1. Building Codes
• Reach codes since 2019: all-elec new construction, 100% of multifamily units EV-ready • 2025 state code matches PCE for new construction; PCE now focused on existing bld codes
2. Existing Building Electrification
• Benchmark for cost-effective residential electrification (billions in savings statewide) • Incentives, finance, tech pilots; Over 4,000 measures installed, >300 low-income homes
3. Solar and Storage
• Scaled deployment with innovative business model in GovPV • Among the first to receive Investment Tax Credits via elective pay
4. EV Charging
• Benchmark for cost-effective multi-family EV charging (billions in savings statewide) • ~1,500 chargers installed, 2/3 at multi-family housing, projects as large as 200 ports • PCE smart outlet avg cost: ~$2,700/ea. 7X cheaper than PG&E L2s, CALeVIP avg: $12,500/ea.
Electrification Pilots
Smart outlet charging
Solar and storage
DER Definitions
Definitions
Distributed Energy Resources (DERs) are
assets on the distribution grid, either on the
consumer’s side of the energy meter (behind-the-meter / BTM) or in front of the customer meter connected to the distribution grid (front-of-the-meter / FTM). They can be used individually or in aggregate to provide value to
the grid and individual customers. Importantly,
PCE will focus on “clean” DERs, which do not
emit greenhouse gases (GHGs) in their
operations.
BTM DERs and VPPs
Behind-the-meter (BTM) DERs are resources that are
interconnected at the customer side of the meter, including both residential and non-residential customers. PCE will integrate the majority of BTM DERs under its Virtual Power Plant (VPP).
A Virtual Power Plant (VPP) is a collection of energy resources that are located at a customer site that can be aggregated together and flexibly managed to meet grid needs. The devices comprising a VPP can include:
• Solar + energy storage systems (ESS) or standalone ESS • Electric vehicles (EVs) and electric vehicle supply equipment (EVSE)
• Heat pump water heaters (HPWHs) and other home appliances • HVAC equipment controlled via a smart control thermostat (SCT) • Commercial building energy management systems (BEMS)
FTM DERs
Front-of-the-meter (FTM) DERs refers to all
generation and storage resources that are
connected directly to the distribution system. In
contrast to BTM DERs, FTM resources are not
offsetting any customer load but instead directly
feed electricity into the distribution grid. FTM
DERs are typically 1-10 MW in size and act as a
wholesale resource, supplying energy directly to
the grid. FTM DERs include:
• Local community solar and storage systems
• Local community-scale, multi-customer
microgrids
Status of DERs in PCE’s Service Area – BTM DERs
Technology Number of
Devices
Nameplate
Capacity (MW)
Estimated Load Shift
Capacity (MW)
Solar PV 24,398 206 n/a
Energy Storage 5,448 50 17.5
Electric Vehicles 57,197 257.4 11.4
Heat Pump Water Heaters 430 0.215 0.086
Heat Pump HVAC 1,416 2.8 1.13
Technology Number of
Devices
Nameplate
Capacity (MW)
Estimated Load Shift
Capacity (MW)
Solar PV 15,639 242 n/a
Energy Storage 1,039 7.8 2.73
Electric Vehicles 2,879 13 0.576
Heat Pump Water Heaters 7 0.004 0.001
Heat Pump HVAC 126 0.252 0.101
San Mateo County
Merced County
Total Load Shift Potential
San Mateo County: 30 MW
Merced County: 3.4 MW
Status of DERs in PCE’s Service Area – FTM DERs
Technology Online
Capacity San
Mateo
County (MW)
Withdrawn
Capacity San
Mateo
County (MW)
Online
Capacity Los
Banos* (MW)
Withdrawn
Capacity Los
Banos* (MW)
Solar 2.04 24.26 7.72 127.67
Solar +
Storage
1.57 11.29 0 22.29
TOTAL 3.61 35.55 7.72 149.96
Source: PG&E’s Wholesale Distribution Access Tariff (WDAT) *Los Banos data based on known substations serving the City Committee Members’ Reports
Peninsula Clean Energy
Adjournment
Peninsula Clean Energy