Peninsula Clean Energy
Executive Committee
Meeting
May 12, 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)
CEO Report (Discussion)
CEO Report
• On track for Board approval of FY 25-26 Budget in June • Upcoming Rating Agency meetings
• PCIA Rulemaking underway – Track 1 and 2
• Risk Management next steps
• July /August public meetings
5 Facilities Update
May 12, 2025
Nelly Wogberg & Nick Bijur
Background
• Current lease ends in September 2026
• 7,660 sq ft between two suites
• 2075 (5,968 sq ft) and Suite 150 at 2055 (1,692 sq ft) • Staff growth from 10 (2017) to 63 employees (2025)
• Currently 27 workstations
• Workplace of Choice Committee formed to assess future space needs
• Interviewed four leading brokers, Jones Lang LaSalle
Brokerage, Inc. (JLL) selected
7 Challenges with Current Office
• Workstation availability during busier in-office days • Boardroom is modest in size (~900 sq ft), making hybrid public meetings more challenging
• Limited transit options make public access more difficult and is inconsistent with PCE’s values
• Fragmented office layout no longer fully supports hybrid work; flexible, collaborative spaces are limited
• Quarterly all-staff gatherings require outside venues, creating added logistical burden and cost
8 The Ideal Office – Next 5-7 Years
• Sufficient and flexible workstations and shared areas that adapt to evolving team needs and maximize in-person collaboration
• A larger, fully accessible boardroom purposefully-built for inclusive hybrid meetings • Improved public access with multiple transit connections and a welcoming environment • Amenities that matter most to staff, including:
• Ample and secure parking plus increased public transit accessibility • Walkability to restaurants and services
• Natural light and a modern, flexible design
• A more central location within San Mateo County to best serve staff, the Board, and the community
• Sufficient capacity for all-staff gatherings, eliminating costly external venue rentals 9 •
“Center of Gravity” study
• Belmont (weekly in-office staff)
• San Mateo (all staff and Board)
• Needs assessment: ~8,500 sq ft
• Inclusive of larger boardroom and
unified space
• Staff survey
• Toured 12 sites
• Checked with SMC for available
space
Work with JLL
10 Notable Explored Sites
Address 7-Year Cost NPV* (est.) Vs Current
1300 S. El Camino Real, San Mateo $4.5 million -2%
2075 Woodside Road, Redwood City $4.6 million n/a
152 N. Rollins Road, Millbrae (SamTrans) $5.1 million 11% 401 Warren Street, Redwood City $5.3 million 14%
993 Laurel Street, San Carlos $5.5 million 20%
220 Park Road, Burlingame $6.8 million 48%
999 Main Street, Redwood City $6.9 million 49%
520 S. El Camino Real, San Mateo $7.8 million 70%
*Note: Est. NPV = (Rent + OpEx + CapEx)
11 • Built in 1987, renovated in 2016
• Class B building; 6 stories
• Multiple suites available on the 5th floor
• 6-min walk from local Caltrain stop
• 15 min walk to downtown San Mateo
• 3.4/1,000 parking spaces
• EV parking available
• Asking rent: $4.95/sq ft
• Limited landlord funded tenant improvement
• 7-year cost: $4.5 million
1300 El Camino Real, San Mateo
12 • Brand new building • Class A building; 3 stories • Entire 2nd floor (8,100 sq ft) and 3rd floor available (8,500 sq ft)
• 14-min walk to local Caltrain stop
•2-min walk to downtown San Carlos
• 1.9/1,000 parking spaces • EV parking available • Asking rent: $7.95/sq ft • Landlord will fund buildout (turnkey) • 7-year cost: $5.5 million 993 Laurel Street, San Carlos
13 220 Park Road, Burlingame
• Brand new building
• Class A building; 6 stories
• Office space available on 4th and 6th floor
• 4-min walk to bullet Caltrain stop
• Located in downtown Burlingame
• 1.7/1,000 parking spaces
• EV parking available
• Asking rent: $10.00/sq ft
• Landlord will fund buildout (turnkey)
• 7-Year cost: $6.8 million
14 December 2024 - May 2025
Workplace of Choice Committee:
Pre-work + Tour Sites
Final recommendation
to Executive Committee
August 2025
August/September 2025
BOD approval delegating
to CEO to negotiate lease
Lease signed and tenant
improvements begin
October – December 2025
Short list site selection based on EC feedback
“Trade papers” with selected properties
May - June
Anticipated move-in date
August/September 2026
Construction completed,
furniture and IT build out
~June 2026
Discussion with Executive Committee
May 2025
Next Steps & Anticipated Timeline
15 Discussion & Direction
Contract for a
Distributed
Energy Resource
Management
System (DERMS)
1. Context
2. What is a DERMS?
3. RFP for Customer Demand Flexibility Solutions
4. Overview of Lunar Energy
5. Contract Structure
6. Next Steps
Agenda
Context
PCE Next Strategic Plan 2026 - 2030
As part of PCE’s next 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 Proposed Distributed Energy Resources (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 to scale 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 What is a Distributed Energy
Resource Management
System?
What is a DERMS?
• 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
Benefits of a DERMS Platform
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
Resource Adequacy Value
25 Load Modification
• Reduce PCE’s RA obligation
• Daily load shift
• CEC peak demand forecast
CAISO Market Integration
• Meet PCE’s RA obligation
• Event-based
• CAISO market participation via
Proxy Demand Response (PDR)
Program Integration
DERMS
26 Our aim is to ensure we can shift load with many of the devices we deploy under our energy programs Solar +
Battery
Savings
GovPV
Residential
Solar +
Storage
Appliances
Home
Upgrade
Event-Based DR
Gov BE (incl. Behavioral)
Commercial Building
Energy Management
Systems
EV
Managed
Charging
Gov EV/
Fleets
Distributed Generation &
Storage Buildings Electric Vehicles
* Existing PCE programs in green, potential future programs in blue What is the local potential?
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
RFP for a DERMS Platform
RFP Process
RFP Issued
• Sept.11, 2024
RFP Responses
• Oct. 30, 2024
• 17 proposals
Shortlist
• Nov. 20, 2024
• 5 proposals
Interviews
• Dec. 2 – 13, 2024
Final Comparison
• Dec. 16 – end of Jan.
2025
• 3 proposals
Request for
Contract Approval
• May 2025
• Lunar Energy
29 Lunar Energy
• DERMS provider and battery
manufacturer
• Offer the Gridshare platform
• International background (UK),
local presence (Mountain View)
• Ava Community Energy’s DERMS
provider
Lunar Energy Capabilities
31 Experience
• 100,000 devices worldwide
• Focus on load modification pathway
but open to CAISO market integration
• Focus on residential customers
• Focus on energy storage device
integration, followed by EVs
Capabilities
DERMS Contract
Contract Structure and Budget
33 MSA
Scope: Legal terms and conditions
Scope 1
Scope: Gridshare delivery, service fees and performance guarantees Budget: $700,000
Scope 2
Scope: CCA-Administered Programs
Budget: $2.4 million
Scope 3
Scope: Load-Modification
Agreement
Budget: TBD
Scope 4
Scope: New 3rd Party-Administered Programs
Budget: TBD
Budget Principles
• Fixed platform fees and volumetric fees for device integration • Volumetric fees apply once devices are integrated under the DERMS platform • Better economics due to collaboration with SVCE
34 Fee Type Description 5-year Budget
Scope Platform fees One-time setup fee, annual platform fee, one-time CRM integration fee
$700,000
Lunar Connected Capacity Fee Ongoing fee for integration of device under the platform
$1,300,000
Device Partner fees Set-up fees and ongoing API fees $1,100,000 $3,100,000
Performance Guarantees
1. Ability to terminate the contract for cause and for convenience
2. Service Level Agreement for software services
• Timelines for technical support response and resolution, categorized by four severity levels
• Performance credits paid by Lunar if timelines are not met
3. Load shift performance guarantees
• Performance credits paid by Lunar if these load shift guarantees are not met 35 Next Steps
Next Steps and Timeline
June/ July 2025
• Scope 1:
Platform launch
• Scope 2:
Integration of
PCE Solar +
Battery Savings
Program (SGIP)
By EOY 2025
• Scope 3: Load
Modification
Agreement
• Scope 4: New
3 rd-party
administered
programs
Through 2026
• Integration of
existing PCE
energy
programs (HUP,
GovPV etc.)
Recommendation
Approval of a main services agreement (MSA) and two sub-contracts (“Scopes”) with Lunar Energy for a DERMS platform with a term of 5 years and a not-to-exceed budget of $3.1 million • Scope 1: Delivery of the Gridshare platform
• Scope 2: Integration of PCE-administered programs
Questions and
Comments
Jana Kopyciok-Lande
[email protected]
Peter Levitt
[email protected]
Committee Members’ Reports
Peninsula Clean Energy
Adjournment
Peninsula Clean Energy