Staff Report – Item 3
To: The Governing Board
From: Sam Kang, Chief Operating Officer
Item 3: Biomass Update
Date: 7/21/2022
RECOMMENDATION
Receive an update on Pioneer Community Energy’s (Pioneer) biomass activity.
BACKGROUND
Pioneer places a high priority on biomass projects due to the many benefits it provides to the communities it serves. Biomass energy provides a sustainable energy solution to help address wildfire mitigation, create local jobs, reduce reliability shortfalls and de-energization events, contribute towards decarbonization goals, and supplement the state’s forest health and vegetation management initiatives. It can also reduce public safety power shutoff impacts when directly connected to and powering a substation.
To show commitment to bioenergy, in August 2020 your Board approved Pioneer’s Integrated Resource Plan (IRP) that includes 5 MW of biomass resources starting in 2024. The difficulty Pioneer faces in contracting for new biomass projects is the high cost associated with buying energy from a biomass project.
In order to solve the problem, staff worked together with a small group of Community Choice Aggregators (CCAs) and was coauthor with Marin Clean Energy for a bill that would enable CCAs to be able to pay for higher bioenergy without raising costs to its ratepayers through participation in the existing BioMAT program. AB 843 (Aguiar-Curry) enables CCAs to participate in the BioMAT program that has been underutilized by the investor-owned utilities without increasing the scope of the California Public Utilities Commission (CPUC) program. In addition to minimizing wildfire risk and creating jobs, the BioMAT program is a clear equity play for CCAs because CCA customers have been, and continue to pay into a program that they receive none of the benefits from.
On September 7, 2021, AB 843 was presented on the Assembly Floor and passed by a unanimous vote of 71- 0, revealing wide bipartisan support. Governor Newsom signed the bill on September 23, 2021, and AB 843 goes into effect on January 1, 2022. The CPUC still has to implement the addition of CCAs to the BioMAT program.
ANALYSIS & DISCUSSION
Regulatory/Legislative
The passage of AB 843 opened the door for CCAs to access the BioMAT program that made energy from new-build biomass plants affordable. Since the passage of the bill last September, the CPUC still has not implemented AB 843 into the BioMAT program. Staff has exchanged numerous emails and calls with the CPUC since the beginning of this year and have not received any information on the status of, nor timing of the implementation of AB 843.
In order to garner attention to the implementation of AB 843, Staff, together with MCE Clean Energy is in the process of writing a letter to the Commissioners of the CPUC addressing its concerns on the delay of the fJONEER
COMMUNITY ENERGY
Agenda Item: 3 Agenda Date: 7/21/2022
implementation and the need to implement the bill immediately. Pioneer will also engage your Board and our legislative representatives in either joining or sending separately the letter to the CPUC Commissioners (Commissioners) – Staff and MCE Clean Energy will be discussing with the original lobbying consultants that assisted with AB 843 on the most effective way to engage the Commissioners. Once the letters have been sent, Staff will actively follow up to expedite the process of implementing AB 843.
Project Development and Energy Procurement
Staff has been actively working with developers on identifying and developing biomass projects. The following are the most developed and promising projects to date:
1. Western Placer County Waste Management Authority: 3 MW facility. Several potential sites have been identified with conceptual designs and initial interconnection studies completed. Site location will be finalized with new landfill operator in the coming months. Power purchase agreement signature ready only awaiting implementation of AB 843.
2. Colfax landfill: 3 MW facility. Potential connection to Shady Glen substation for grid resiliency during public safety power shutoff events. Several potential funding sources are being explored to pay for remediation of the landfill including CalRecycle and the Environmental Protection Agency.
3. Black Oak Mine School District: 65 kW behind the meter (BTM) project. Plan is to include a small lumber mill to incorporate into the student Regional Occupational Program. Application for CAL FIRE grant submitted.
4. South Tahoe Refuse: 125 kW BTM project at the Material Recovery Facility located within the City of South Lake Tahoe.
In addition to development of new biomass plants, Staff is currently negotiating a 10-year power purchase agreement with a biomass facility that will help fulfill Pioneer’s long-term renewables portfolio standard and IRP planning.
FISCAL IMPACT
None.
ATTACHMENTS
None.
Staff Report – Item 4
To: The Governing Board
From: Mark Riffey, Director, Public Affairs, Marketing and Programs Item 4: Non-Residential Customer Engagement Plan
Date: 7/21/2022
RECOMMENDATION
Receive an overview of the non-residential customer engagement plan (PLAN), including recent successes and pending activities.
BACKGROUND
The 2021 – 2024 Strategic Plan identifies local engagement as a top priority. Additionally, connecting with our top commercial and industrial customers has been considered a key factor in achieving success.
In early 2022, Pioneer hired a key accounts manager. The primary role of this position is to create a positive relationship with our top non-residential customers.
The participation rate within the assigned accounts is very strong. A total of 98.3 percent of eligible accounts are signed up with Pioneer. Additionally, it is estimated that 95.7 percent of eligible load (MWh) is enrolled with Pioneer. Eligible accounts do not include Direct Access customers.
ANALYSIS & DISCUSSION
The intention of this PLAN is to further Pioneer’s relationship within the business community with our existing customers, but also those customers that are not enrolled with Pioneer.
Pioneer’s customer service team will be undertaking a variety of steps to ensure success. These are as follows:
1. Identify our customers and key regional influencers
a. Categorize by sector and size
2. Develop customer contacts
a. Capture contact information for multiple contacts in various areas of each firm
3. Establish relationships with each customer and contacts a. Connect with each customer on a regular basis
4. Enhance relationships with each customer and contacts a. Understand the customer’s business and topics of interest
5. Communicate with key internal staff (executive, finance, and power supply) a. Impactful changes to future loads and revenues
STRATEGIC PLAN
This plan supports Pioneer’s 2021- 2024 Strategic Plan in a variety of areas.
1. Local Engagement - Strengthen comprehensive relationships, which includes engaging the top 20 non-residential customers in each county
2. Quality in Service - Maintain the trust and responsiveness Pioneer customers expect in their service experiences.
3. Financial Stability & Strategic Growth - Build policies and procedures that facilitate the growth of our service area
fJONEER
COMMUNITY ENERGY
Agenda Item: 4 Agenda Date: 7/21/2022
FISCAL IMPACT
None
ATTACHMENTS
None
Staff Report – Item IV-B
To: The Governing Board
From: Don Eckert, Executive Director
Item IV-B: Executive Director Report
Date: 7/21/2022
REPORT
Personnel
Cianan Mauk joined the Pioneer team on July 6th as our Power Contracts Manager. Cianan brings several years of transactional legal experience to Pioneer to assist in the negotiation and management of power purchase agreements. He is excited to bring his skills to help the communities in the Sierra foothills access affordable, reliable, and clean energy. In his free time, he enjoys hiking and camping with his wife, young son, and dog. Cianan is a graduate of Santa Clara University School of Law and is a licensed California attorney.
All approved positions have been filled. Upon Board approval of the four (4) new positions, staff will begin the recruitment process.
Public Safety Power Shutoff (“PSPS”) Event
There are no PSPS events to report.
Executive Director Agreements Executed
Capital Network Solutions – Diamond Managed Information Technology Package, cybersecurity services, not-to-exceed $50,000, term ending June 30, 2023 Board Meeting Reminder
There are no Board or Committee meetings for the month of August. Governing Board meetings will resume in September at the City of Auburn. Meeting arrangements will be sent to the Board well in advance. Enjoy your summer vacation from Pioneer!
How to Read Your Bill Video
Pioneer’s marketing consultants JSR Strategies will be presenting a draft of the “How to Read Your Bill” video.
Expansion Update
Staff briefed the expansion committee in late June. As of this report, staff will commission Pacific Energy Advisors to conduct an impact assessment study on Nevada County and the City of Grass Valley. The results of the study will be presented at the September Board meeting.
Update on Legislation Impacting the Brown Act
AB1944
Summary: AB1944 would allow a local agency to use teleconferencing during public meetings without having to publish private addresses and make their private address open to members of the public if the members participating remotely are identified on the agenda (must be updated if changes after agenda posted) and if, by fJONEER
COMMUNITY ENERGY
Agenda Item: IV-B Agenda Date: 7/21/2022
a majority vote, the body decides that members will not be required to identify the address of any private location from which the member elects to teleconference (determination remains applicable to the legislative body until such time as the legislative body votes otherwise). The meeting would be required to be live streamed and allow for remote public participation. This bill would sunset January 1, 2030.
Status Update: The bill was amended on June 23 and June 30 as follows:
• Sunset date revised from Jan. 1, 2028, to 2026.
• Revisions clarify the circumstances under which a member may appear remotely and the process for requesting remote accommodation. There are generally 2 circumstances where remote appearances are allowed: 1) up to two “just cause” circumstances in a calendar year, and 2) emergency circumstances. For each, the member must alert the body at the earliest opportunity possible, including at the start of a regular meeting, of their need to participate remotely and provide a general description of the circumstances relating to their need to appear remotely at the given meeting. For emergency requests, the body takes action at the beginning of the meeting at which the request was made.
o “Just cause” means any of the following: (A) A childcare or caregiving need that requires them to participate remotely; (B) A contagious illness that prevents a member from attending in person; (C) A need related to a physical or mental disability not otherwise accommodated; and (D) Travel while on official business of the legislative body or another state or local agency.
o “Emergency circumstances” means a physical or family medical emergency that prevents a member from attending in person.
• Revisions change the overall limits on remote participation. A member of a legislative body may not participate in meetings solely by teleconference from a remote location for a period of more than three consecutive months or 20 percent of the regular meetings for the local agency within a calendar year, or more than two meetings if the legislative body regularly meets fewer than 10 times per calendar year.
AB2449
Summary: AB2449 would allow a local agency to use teleconferencing during public meetings so long as at least a quorum of members of the legislative body participates in person, without requiring that each teleconference location be noticed and accessible.
Status Update: Bill is not moving forward. On 7/5/2022 - Failed Deadline pursuant to Rule 61(b)(14). (Last location was S. GOV. & F. on 6/8/2022)
Executive Director Power Supply Contracts Executed
The following agreements have been executed by the Executive Director, consistent with the authority delegated by the Board:
Presentations and Relevant Meetings attended by the Executive Director
1. Participated n CalCCA Weekly/Monthly Board meetings
2. Participated in discussion with Assemblymember Gallagher’s Office
3. Participated in site visit with Wisewood Energy and City of Colfax staff reviewing landfill site for biomass project
4. Participated in site visit to Redwood Coast Energy for the launch of their microgrid project located at the local airport. Connections and ideas were brought back to consider a similar venture for Pioneer.
5. Participated in discussions with Redwood Coast Energy and Sierra Business Council regarding Pioneer joining the RuralRen initiative which will focus on programs for rural communities Counterparty Name
Execution
Date Type Product Start Date End Date Notional Value
Calpine Energy Services, L.P. 6/17/2022 Buy Pioneer North System Flexible 8/1/2023 12/31/2023 $3,007,500 Clean Energy Alliance 6/8/2022 I I Buy Pioneer South System I I 8/1/2022 8/31/2022 $12,500 Agenda Item: IV-B Agenda Date: 7/21/2022
ATTACHMENTS
1. Agenda Planning Document
2. Monthly Legislative and Regulatory Update
3. Monthly Marketing and Public Outreach Report
4. Minutes from most recent Community Advisory Programs Committee Agenda Planning Document – Pioneer Community Energy Updated 7/12/2022 C:\Users\TeresaWillock\Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates This is a planning document which remains fluid pending staff communication Assigned items are listed with the Report Writer’s name as they will be initiating the report
BOARD OF
DIRECTORS
JULY 13, 2022
3:00 PM
Special Meeting
CLOSED
SESSION
JULY 21, 2022
3:00 PM
(Post Agenda: JUL 15)
Alternate attending for Placer
August
Recess - No Meeting
SEPTEMBER 15, 2022
3:00 PM
City of Auburn
(Post Agenda: SEPT 9)
Alternate attending for Placer
OCTOBER 20, 2022
3:00 PM
County of El Dorado
(Post Agenda: OCT 14)
NOV 17: County of Placer
IN THE FUTURE
Closed
Session
GC§ 54957.6
Conference with Labor
Negotiators
(TBD) Closed Session: Executive
Director review (2-meeting process)
General
Function I
Public Report-Closed Session GC
Agenda Review
Agenda Review Agenda Review
Consent
1a
Approve meeting minutes
JUN 16, 2022 (Action - Eckert)
Teresa
Approve meeting minutes
JUL 21, 2022 (Action - Eckert)
Teresa
Approve meeting minutes
SEPT 15, 2022 (Action - Eckert)
Teresa
(FEB) By-Laws Article V, Section 5.2
1b MONTHLY – reaffirm Pioneer AB
361 Remote Meeting
Continuation Findings & receive
Leg/Reg update (Action – Eckert) GC
*more than 30 days from June 16 –
requires a new determination
MONTHLY – reaffirm Pioneer AB
361 Remote Meeting
Continuation Findings & receive
Leg/Reg update (Action – Eckert) GC
*more than 30 days from July 21 –
requires a new determination
MONTHLY – reaffirm Pioneer AB
361 Remote Meeting
Continuation Findings & receive
Leg/Reg update (Action – Eckert)
GC
*more than 30 days from September
15 – requires a new determination
RE: AB 361 Remote Meeting
Continuation Findings
1c Receive Draft Financials: MAY
2022 (Koehn)
Receive Draft Financials:
through JUNE 2022 (Koehn)
Receive Draft Financials: x 2022
(Koehn)
1d RES amend #x to JSR contract
(Action – Riffey)
IT Policy (Action-Koehn) Steve
1e RES Salary Matrix/Comp Studies
(Action – Koehn)
1f RES approving job descriptions
(Action – Koehn)
Regular
2 RES authorizing CCCFA
Membership for Power Prepay
(Action – Koehn/Berwanger)
Expansion-Impact Assessment
results (Action – Eckert)
RES IRP approval (Action-Kang) (TBD) mPOWER report
(TBD) CPAC report
(TBD) NEM 3.0 update
3 Biomass Update (Discussion –
Kang)
JPA Amendment re: Expansion
(approve issuance of a 30-day
notice) (Action-Eckert)
(TBD) Data Flow presentation
(TBD) AG Rate Changes
(TBD) PG&E Rate Changes
4 Non-Resident Customer
Engagement Plan (Discussion -
Riffey)
(TBD) Presentation by Biomass
Producer, Bayview (Director Hidahl)
General
Function II
IV-B
Executive Director’s Report
introduce new Power Supply
Contracts Manager, Cianan Mauk;
presentation: “How to Read Your
Bill” video (JSR); Reports: Leg/Reg;
Community Engagement; CPAC
minutes – JUNE
Executive Director’s Report
Reports: Leg/Reg; Community
Engagement; Q3 Strategic Plan
update; CPAC minutes – JULY;
Executive Director’s Report
Reports: Leg/Reg; Community
Engagement; CPAC minutes – SEPT;
Executive Director Report - Quarterly
Update re: Strategic Plan objectives
JUN – SEPT – DEC – MAR
IV-C Informational Items: Glossary of
Terms
Informational Items: Glossary of
Terms
Informational Items: Glossary of
Terms
If more than 30 days between meetings, must
make a new determination – NO committee
meetings scheduled during a lapsed period
Existing committee members shall be affirmed
by the Governing Body each year at its
February meeting
LJ
I
■ ■ ■
-i
I I 7
-
2:30PM - Closed Session
GC§ 54957.6 Conference with Labor
Negotiators
Agenda Planning Document – Pioneer Community Energy Updated 7/12/2022 C:\Users\TeresaWillock\Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates
AUDIT/FINANCE COMMITTEE
DATE
following September 15 Board
(mid-late September)
DATE DATE IN THE FUTURE
Greg Janda, Chair
Jeff Duncan, Vice Chair
Dan Karleskint
Dennis Thomas
Budget Kick-off
Power Prepay Update
Audit Kick-off
1st meeting of calendar year
Selection of Officers
COMMUNITY PROGRAMS
ADVISORY COMMITTEE
JULY 27, 2022
2:00 PM
AUGUST
sub-committee only
SEPTEMBER 28, 2022
2:00 PM IN THE FUTURE
(7) Community Members
Geoff Mclennan, Chair
Glen Kramer, Vice Chair
4th Wednesdays at 2:00 PM
Post agenda Thursday, 7/21 Post agenda Thursday, 9/22 Officers set for duration of the Committee ≥ April 2023
ENERGY PROCUREMENT
REVIEW
AD HOC COMMITTEE
DATE
TBD October DATE DATE IN THE FUTURE
John Hidahl, Chair
Alice Dowdin Calvillo, Vice Chair
Jeff Duncan
Greg Janda
1st meeting of calendar year
Selection of Officers
EXPANSION
AD HOC COMMITTEE
DATE
prior to September 15 Board DATE DATE IN THE FUTURE
Alice Dowdin Calvillo, Chair
Jim Holmes, Vice Chair
Dan Karleskint
Preview of Impact Assessment
Studies
1st meeting of calendar year
Selection of Officers
By-Laws Article V, Section 5.3
Each committee shall on an annual
basis choose its officers, comprised of a Chairperson and Vice-Chairperson Ad Hoc Member Limit fewer members than majority of board (<5)
Ad Hoc Member Limit fewer members than majority of board (<5)
Ad Hoc sub-committee Member Limit
fewer members than majority of CPAC
(<4) I I
I I
I I
July 21, 2022 - Pioneer Community Energy Legislative and Regulatory Update Pioneer Community Energy Legislative and Regulatory Update July 21, 2022
Legislative Affairs
California Legislature Update
Governor Newsom recently signed into law the budget revise which contains a $49 billion budget surplus and includes an $8 billion proposal for energy reliability. The majority of the energy proposal appropriates $4 billion to the State Department of Water Resources (DWR) to procure additional resources for use in energy emergencies. This appropriation will allow the DWR to procure at a quicker pace than other Load Serving Entities, bypassing permitting and siting constraints, will allow extensions of once through cooling plants, and could potentially lead to an extension of Diablo Canyon nuclear plant’s contract. The Legislature began Summer Recess on July 1, 2022 and will reconvene on August 1, 2022. Much of the legislative session work will take place in August. The legislative session ends on August 31, 2022, and the Governor must sign or veto all bills by September 30, 2022. Any bills not signed or vetoed by September 30, 2022 will become law on January 1, 2023.
Pioneer staff continues to monitor priority bills, bill amendments, and Committee hearings through the Legislative session and will keep the Board apprised.
Pioneer Legislative Update
Pioneer staff continues engagement with CalCCA, individual CCAs, and other stakeholders developing legislative and policy strategies for the remaining 2022 session and beyond. Pioneer staff is also independently engaged advocating with the Board, Member Agencies, and our Legislative Representatives on key bills of particular importance. Position letters on several key bills have been submitted to bill authors and staff, legislators, and hearing Committees during the 2021-2022 legislative session. Pioneer leadership and staff met with Senator Nielsen’s staff on June 2, 2022, Assemblymember Bigelow’s staff on June 3, 2022, Assemblymember Gallagher’s staff on June 27, 2022, and Assemblymember Aguiar-Curry’s staff on July 5, 2022. All meetings were highly productive as Pioneer staff introduced Pioneer and its general legislative priorities, and those specific to this legislative session. The main area of discussion was biomass and supporting biomass. Additionally, staff discussed Pioneer’s top three priority bills: AB 2878 (Aguiar-Curry), SB 1109 (Caballero), SB 881 (Min), and the implementation with the California Public Utilities Commission (CPUC) of AB 843 (Aguiar-Curry, 2021). The meetings were successful and laid the foundations for relationships with Pioneer’s legislative representatives’ offices.
July 21, 2022 - Pioneer Community Energy Legislative and Regulatory Update Position letters submitted on active bill measures:
AB 1956 (Mathis) – Solid waste: woody biomass: collection and conversion.
Bill was held under submission in Assembly Natural Resources Committee Support.
The bill would create a 5-year woody biomass rural county collection and disposal pilot Program and provide funding to collect and dispose of biomass at local biomass facility to reduce GHGs had the waste been disposed of or burned. Counties with a population under 250,000 are eligible for the Program.
AB 2878 (Aguiar-Curry) – Forest Biomass Waste Utilization Program.
Bill is in Senate Appropriations Committee, awaiting hearing date Support.
The bill helps to achieve the state’s forest heath and wildfire risk reduction goals by increasing the productive use of forest waste through energy generation and wood products manufacturing. In doing so, AB 2878 will: 1) help reduce future emissions related to the open burning or natural decomposition of forest residuals; 2) increase energy reliability and resiliency in those communities at greatest risk of losing power; and 3) create jobs and improve the economy in many of California’s rural communities.
SB 612 (Portantino) – Electrical Corporations and other load serving entities: allocation of legacy resources.
Bill remains in Senate Utilities, Energy, and Communications Committee Support.
This CalCCA sponsored bill proposes the Power Charge Indifference Adjustment (PCIA) Working Group 3 report to ensure fair and equal access to the benefits of legacy resources held in IOU portfolios and address the management of these resources to maximize value for all customers.
SB 833 (Dodd) – Community Energy Resilience Act of 2022.
Bill is in Assembly Appropriations Committee, hearing date August 3, 2022 Support.
The bill would require the California Energy Commission (CEC) to develop and implement a technical grant Program for local governments to develop community energy resilience plans and expedite permit review of distributed energy resources by local governments. The bill would require a plan to identify critical facilities, locations, and facilities where microgrids or other distributed energy resources could meet local resilience needs, and potential funding sources for implementing projects in the plan.
SB 1109 (Caballero) – California Renewables Portfolio Standard Program: bioenergy projects.
Bill is in Assembly Appropriations Committee, hearing date August 3, 2022 Support.
This bill proposes changing the feedstock requirements and increases the cumulative rated generating capacity from bioenergy projects to 225 MW. The bill would also require the following: require those entities with a contract to procure electricity generated from biomass that expires or expired on or July 21, 2022 - Pioneer Community Energy Legislative and Regulatory Update before December 31, 2028, to seek to amend the contract to include, or seek approval for a new contract that includes, a 5-year extension date in the contract if that contract was operative in 2022.
SB 881 (Min) – Load Serving Entities (LSE): integrated resource plans.
Bill was held under submission in Senate Appropriations Committee, effectively dead Oppose; updated from Oppose, Unless Amended.
This bill would require the CPUC to prescribe and require each LSE to undertake sufficient procurement to achieve a diverse, balanced, and reliable statewide portfolio and realize specified electricity sector greenhouse gas emissions reductions. The CPUC may assess penalties to LSEs that fail to satisfy procurement obligations and may authorize additional procurement to satisfy unmet needs.
SB 1287 (Bradford) – Electric service providers (ESP) and community choice aggregators: financial security requirements (FSR).
Bill did not make it out of Senate Utilities, Energy, and Communications Committee, effectively dead Oppose.
This bill would require the posted FSR amount, or demonstrated insurance amount, at the time of registration by an ESP or CCA to be no less than $500,000, rather than the current amount of $147,000.
The bill would also require the CPUC to update the FSR for ESPs and CCAs to instead include costs for no less than 12 months of incremental procurement incurred by the provider of last resort, upon customers’ involuntary return.
Pioneer’s legislative efforts continue to focus on the issues of bioenergy and biomass, grid resiliency/reliability, Public Safety Power Shutoff (PSPS)/Enhanced Powerline Safety Settings (EPSS) and wildfire mitigation, microgrid development, addressing Power Charge Indifference Adjustment (PCIA) volatility, transportation electrification funding, and preparing to avoid and oppose potentially threatening bills. As the 2022 legislative landscape progresses, Pioneer staff will continue to update the Board and may reach out for efforts to either support or oppose specific bill measures, as needed.
Regulatory Proceedings
Below is a summary table of the key issues followed by further detail on activities since our last Board Meeting on a few ongoing priority Pioneer regulatory Proceedings and matters. More updates will follow at future Board meetings as regulatory Proceedings and matters evolve.
Proceeding Issue Pioneer Position
R.17-06-026 Power Charge Indifference
Adjustment (PCIA)
Reduce the PCIA and rate volatility
for CCA customers; increase data
transparency from the IOUs
R.17-09-020; R.19-11-009; R.21-
10-002
Resource Adequacy (RA) Reform &
Implementation Tracks
Refine the current RA Program
construct; reduce volatility of RA
prices; increase RA procurement
July 21, 2022 - Pioneer Community Energy Legislative and Regulatory Update availability and grid reliability
R.18-12-005 Utility De-energization/Public
Safety Power Shutoffs (PSPS)
Reduce impacts of PSPS events;
increase coordination and
communications with IOUs to
ensure public safety during de-energization; limit PSPS impact on CCA load scheduling
A.20-02-009; A.21-03-008; A.21-
06-001; A.22-05-029
PG&E 2019 Energy Resource
Recovery Account (ERRA)
Compliance Application; PG&E
2020 ERRA Compliance
Application; 2021 ERRA
Compliance Application; 2022
ERRA Compliance Application;
2023 ERRA Compliance
Application
Reduce the ERRA impact on the
PCIA; increase data transparency
from the IOUs
• PCIA:
o This Proceeding seeks to improve the methodology used in the ERRA Proceeding to determine the PCIA.
o Phase 2 of the Proceeding created three Working Groups to formulate processes to address additional PCIA proposals.
Working Group 1 (Benchmark Issues) sought to address outstanding benchmark issues and the benchmark true-up. An April 18, 2022 Ruling was issued regarding Market Price Benchmark (MPBs), requesting comments on Staff Implementation Plan to address RPS Voluntary Allocation Transactions in MPB Calculations; Comments were filed on April 28, 2022; Replies were filed on May 12, 2022. IOUs and any other parties were allowed to file proposals on the Energy Index MPB calculation; Proposals were due May 27, 2022; Comments were due June 16, 2022; Replies were due June 30, 2022. On June 10, 2022, an ALJ Proposed Decision (PD) was issued that, if adopted, will resolve Phase 2 issues related to data access and voluntary allocations in the MPB in the ERRA and PCIA forecast. This PD may be voted on at the July 14, 2022 CPUC voting meeting. On June 29, 2022, a Workshop was held to discuss the Proposals to revise the energy index MPB. On July 8, 2022, Opening Comments on the Joint IOU Energy Index MPB Proposal were filed; Replies are due on July 22, 2022 Working Group 2 (Prepayment) seeks to resolve issues surrounding PCIA prepayment options, should a CCA choose to do so. On March 17, 2022, Resolution E-5134 approved protocols proposed by IOUs to administer, process, and negotiate requests to prepay PCIA obligations. A Ruling is pending.
Working Group 3 (Portfolio Optimization) sought to resolve issues on portfolio optimization and resource allocation. A PD on Working Group 3 matters was issued on April 5, 2021. The Decision was unfavorable and did not address Working Group 3 July 21, 2022 - Pioneer Community Energy Legislative and Regulatory Update recommendations. CalCCA submitted comments on the Decision focusing on addressing the Working Group 3 recommendations that the PD disregarded or pushed to a later date. CalCCA filed an Application for Rehearing (AfR) on the PCIA Cap and Portfolio Optimization Decision. On April 7, 2022, the CPUC rejected the AfR and declined to revisit the aspects of the Decision that the AfR challenged. On May 11, 2022, SJCE and 3CE filed a Petition for Writ of Review with the California 6th Court of Appeals challenging the CPUC PCIA Working Group 3 Decision; this will probably be dealt with in the fall. The petition’s argument is that the CPUC treated this proceeding as quasi-legislative, when it was a rate setting proceeding; the Petition also argues that the CPUC made legal error and did not consider the Working Group 3 reports. A Ruling is pending. The Voluntary Allocation Market Offer (VAMO) process is continuing in the RPS proceeding. On June 24, 2022 an Amended Scoping Ruling extending the statutory deadline to June 30, 2023 to address remaining issues in Phase 2 (GHG free resources, long-term fixed price transactions in RPS adder, calculation of Energy Index MPB, and VAMO).
• Resource Adequacy:
o R.21-10-002 established a Reform Track and an Implementation Track for RA compliance year 2023.
o Reform Track (formerly known as Track 3B.2): Slice of Day proposals and implementation topics were discussed through five workshops conducted in the fall of 2021 through the end of 2021. A Workshop Report was released in February 2022. The Workshop process was intended to lead to significant changes to the RA Program starting in 2024. A recent PD adopted Local Capacity Obligations for 2023-2025, Flexible Capacity Obligations for 2023, and Reform Track Framework; Comments were due June 9, 2022, and Reply Comments were due June 14, 2022.
A Final Decision is expected summer 2022.
o Implementation Track: seeks to address system, flexible, and local RA capacity requirements and all other issues relating to RA procurement obligations and Program implementation details. Phase 2 is addressing Flexible Capacity Requirements, Local Capacity Requirements, modifications to the Planning Reserve Margin (PRM), and Qualifying Capacity (QC) Counting.
Proposals were filed January 21, 2022. On May 20, 2022, a PD was issued addressing RA requirements and Phase 2 Implementation Issues. On June 9, 2022, PCE, SJCE, and CalCCA filed Opening Comments on the PD; Reply Comments were filed on June 14, 2022. A Final Decision is expected summer 2022. Phase 3 will deal with 2024 requirements for flexible RA and the 2024-2026 local RA requirements. Phase 3 is anticipated to conclude summer 2023. • Deenergization/PSPS/EPSS:
o In the fall of 2021, former CPUC President Batjer sent a letter to PG&E regarding PG&E's Enhanced Powerline Safety Settings (EPSS) Program which deenergizes lines to prevent utility-caused wildfires. EPSS’ have turned off the power to thousands of customers in northern California since the Program began in July 2021, including many in El Dorado County. These outages are related to PSPS as a measure to prevent wildfires caused by PG&E infrastructure, July 21, 2022 - Pioneer Community Energy Legislative and Regulatory Update however, are not accountable under the CPUC established PSPS rules: there is no advanced warning, and no communication takes place; power can be out for hours or days, presenting inconvenience, confusion, and dangers to those who rely on electricity for medical reasons.
Pioneer sent a letter to President Batjer in the fall of 2021 regarding EPSS issues. The letter supported the comments in Batjer’s letter to PG&E seeking to address problems with the EPSS Program and requested additional information from PG&E in EPSS incident reports o Pioneer staff has been working with BBSW to get more detail in PG&E’s EPSS reports to demonstrate to our customers that Pioneer is working to address their concerns with the effects of the power shutoffs and to mitigate the effects of the shutoffs. Pioneer staff is leading an effort among Joint CCAs and other stakeholders asking the CPUC for the consideration of EPSS issues in the Deenergization Proceeding. Pioneer, along with Joint CCAs and Rural County Representatives of California, filed a motion with the CPUC, on July 12, 2022, to consider EPSS issues in the Deenergization Proceeding. The arguments in the motion are to treat EPSS events with the same regulations and oversight as PSPS events. • PG&E ERRA Compliance and ERRA Forecast:
o The ERRA Proceeding acts as a review of an IOU’s prior year portfolio management and accounting and seeks to identify errors and discrepancies between PG&E’s revenue requirements vis-à-vis collected revenues through the IOU’s General Rate Case which ultimately affects CCA rates through the PCIA.
o PG&E Compliance Review of PABA and ERRA Entries 2019, Phase 2: Phase 2 seeks to address PSPS cost recovery methodology for lost revenues for 2019 and future PSPS events in the ERRA. At the end of March 2022, Brian Dickman from New Gen testified regarding the IOUs' unrealized revenue calculation for the 2019 and future PSPS events. Brian’s testimony also sought to correct the numbers in the IOUs’ Supplemental Testimony and to note Joint CCAs’ lack of disagreement with PG&E’s methodology for calculating lost wholesale generation revenues from hydroelectric resources; Reply Briefs were due June 17, 2022. Pioneer and Joint CCAs are in a good place on the methodology to include wholesale generation revenues, but this may not be applied to 2019 events.
o PG&E Compliance Review of PABA and ERRA Entries 2020: on March 16, 2022, a PD was issued resolving Phase 1 issues; a Final Decision was adopted at the April 21, 2022 Commission Voting Meeting. The Joint CCAs won on all outstanding contested issues with PG&E in the Proceeding. o PG&E Compliance Review of PABA and ERRA Entries 2021: on February 28, 2022, PG&E submitted their 2021 ERRA Compliance Application. On April 6, 2022, CalCCA and other stakeholders filed Protest to the Application; on April 18, 2022, PG&E replied to the Protests. A virtual Prehearing Conference was held on June 9, 2022. o 2022 PG&E ERRA Forecast: On March 31, 2022, PG&E filed its 2023 ERRA Forecast Application.
On May 16, 2022, PG&E filed AL 6596-E notifying the CPUC that PG&E’s PABA balances had surpassed the 4% trigger amount. When the 4% Trigger threshold has been met, and it does not appear it will self-correct, PG&E is required to file an expedited application to increase bundled rates (placing CCA rates in a more competitive position). PG&E envisions a $107 million under collection at year end. A large under collection means increased bundled July 21, 2022 - Pioneer Community Energy Legislative and Regulatory Update generation rates.
o 2023 PG&E ERRA Forecast: PG&E filed their annual Forecast Application on May 31, 2022, forecasting its electric procurement cost revenue requirement and electricity sales for 2023.
Protests/Responses were due on July 6, 2022. Forecasted revenue requirements will become effective January 1, 2023.
• Disconnections Rulemaking:
• A second arrearages forgiveness Program, Percentage of Income Payment Plan (PIPP), was created to address surfacing issues regarding cost collection and other disputed issues. A PD was issued on September 2, 2021 authorizing the Public Purpose Program Charge (PPPC) PIPP Pilot Program inclusive of CCAs, with cost recovery coming through the PPPC. A Final Decision was voted out at the October 7, 2021 CPUC Business meeting. IOUs began PIPP Implementation Working Group Meetings at the end of 2021 and the beginning of 2022. • Outstanding issues from the closed COVID Debt Proceeding are now taking place in this Proceeding. A Working Group was convened to file a proposal on the Community-Based Organization (CBO) Pilot Program to create a budget, payment structure and evaluation method. One CCA from each IOU service territory is participating in the Working Group.
Customers targeted for the Pilot Program will continue to be discussed in this Proceeding. On May 3, 2022, a Pilot CBO Working Group kickoff meeting was held; meetings are ongoing through July 2022. IOU Arrearage Management Plan (AMP) implementation is ongoing. Parties’ Comments on implementation issues were raised on May 16, 2022. • 2021 Emergency Reliability OIR:
o On October 29, 2021, a PD directed the IOUs to take action to ensure reliability during extreme weather in summer 2022 and 2023. The PD adopted several supply and demand-side requirements to ensure adequate electrical power in the event of extreme weather during times of greatest need in summers 2022 and 2023. The PD directed the IOUs to procure a total of between 2,000 and 3,000 MW of supply-side resources and expanded the procurement role of the Central Procurement Entities (CPEs) but did not impose penalties for new procurement if reasonable efforts are demonstrated to meet the procurement targets. The PD also expanded the Emergency Load Reduction Program (ELRP) which increases incentives for customers to reduce electrical usage during times when the grid is most vulnerable. The proposal also expanded existing authorization to procure supply-side resources including, for example, storage, imports, and gas plant efficiencies which can count toward procurement targets.
CalCCA’s Comments on the PD argued that procurement should be limited to 2,000 MW and to define “reasonable” attempts IOUs must make to meet emergency procurement obligations. o On May 16, 2022, PG&E filed an AL regarding efforts to prioritize generator interconnections to meet grid reliability initiatives. On May 24, 2022, PG&E filed AL 6604-E seeking approval of 12 short-term agreements to procure incremental capacity to serve at peak and net peak to prepare for potential extreme weather events in summer of 2022. PG&E will be procuring for all customers in its service territory and is requesting to pass on all costs to all benefitting customers through the Cost Allocation Mechanism (CAM).
July 21, 2022 - Pioneer Community Energy Legislative and Regulatory Update • Net Billing (Formerly NEM 3.0):
o This Proceeding proposes to create a successor Program to NEM 2.0 to address some of the identified issues with the existing Program. The objective is to increase equity and eliminate cost shifts onto lower income customers who are subsidizing, to some degree, residential solar owners. On May 9, 2022, an ALJ Ruling was issued allowing parties to respond to 14 different questions on four distinct topics being considered in the Proceeding: transitional “glide path” for NEM 3.0 implementation, associated non-bypassable charges, and applicable community solar tariffs. This ALJ Ruling reopened the Proceeding to address outstanding NEM matters.
Comments were filed on June 10, 2022, and Replies were filed on June 24, 2022. A group of Joint CCAs filed Opening Comments but not Replies. Pioneer did not sign-on. 7/15/2022
1 Customer Engagement Update
July 2022 Board Meeting
Types of Engagement
Getting to know our customers: • Phone Calls & Emails
• In Person Customer Site Visits
• Event Attendance & Sponsorship
• Community Presentations
• Key External Stakeholder
Meetings
• Social Media
• Paid Media
• Earned Media
1 2
7/15/2022
2 New Website
• New website launched June 1, 2022
• www.pioneercommunityenergy.org
• Online rates calculator • Tips for saving energy
• More resources
• Aggressive public
awareness campaign
Direct Customer Engagement
In Person Site Visits
• Key Accounts – 4
• Major Accounts – 3
Phone Calls/Emails
• 722 customer calls (call
center)
• 93.9% satisfied with
customer service
• 177 emails
• 83 team calls
• 22 bill analysis
3 4
7/15/2022
3 Joint Rate Mailer
PG&E/Pioneer Results
• 165,000 emails sent
• Residential (155,000)
• 80,000 unique open (55%)
• Non-Residential (10,000)
• 4,000 unique open (39%) •22,000 mailers delivered
Key External Stakeholder Meetings
• El Dorado County Fair Booth
• Rocklin Government Relations
Committee
• Sons in Retirement (Auburn)
• Placer Biomass Consortium
• Rocklin State of City
• Rural Regional Energy
Network (REN)
• Loomis Chamber
• Auburn Greater Area
Economic Development
5 6
7/15/2022
4 Social Media
Website
• 5,341 Site Visits
• 4,800 new users in June
Facebook
• 780 Followers
• 9 Items Posted
• 4,900 Page Content Clicks
• 657 Likes
LinkedIn
• 181 Followers
• 6 Items Posted
• 383 Post Impressions
Other Media
Earned Media
• 2 - Total # of Stories
• 7,800 - Total Audience
• $250 - Total estimated value
Paid Radio Spots
204 30-second Spots
• KXJZ (NPR)
• KAHI
• KFBI News
• KSTE (Talk 650)
Paid Media
Save 6% or More Campaign
• Bus Stop Signs
• Discover Magazines
• Newspaper Ads
• Social Media Ads
• Google Ads
7 8
PIONEER COMMUNITY ENERGY
COMMUNITY PROGRAMS ADVISORY COMMITTEE
June 22, 2022
Minutes
Entry No. 1
Heard General Administration Functions, Part I.
Call to Order
Pioneer Community Energy Community Programs Advisory Committee (“CPAC”) met in open session at 2:02 PM on June 22, 2022. Pursuant to Government Code section 54953(e) and other applicable provisions of the Brown Act, the meeting was conducted via live streamed teleconference accessed and viewed at the following web link: https://us06web.zoom.us/j/88322361917.
Roll Call
P A Title Name Actions
x Chair Geoff McLennan
x Vice Chair Glen Kramer Previously informed Committee and staff of this absence
x Member James Curtis
x Member David Deckman
x Member Lee Kosla
x Member Glenn Krakow
x Member Brandon Reinhardt
Director Riffey reported that a resignation had been received from Member Akyol effective June 17, 2022.
This brings the Committee to seven members which will require 4 members for a quorum and limits ad hoc sub-committees to no more than 3 participants.
Public Comment
There were no comments from members of the public.
Entry No. 2
Acted on the Consent Agenda as follows:
Approved minutes of the May 25, 2022 Committee meeting.
MOTION: Deckman/Krakow. Vote: 5:0:2.
ROLL CALL: Deckman, Kosla, Krakow, McLennan, Reinhardt.
No/Abstain: None.
Absent: Curtis, Kramer
Entry No. 3
Discussed Report Preparation
Reviewed the timeline for July Kick-Off and work throughout August.
Director Riffey reminded the Committee that there would be no regular meeting in the month of August; that the Report drafts would be provided to the Committee for review in September and October with the final Report revisions approved by the Committee in November; then to prepare Board presentation for December.
i. Created an Ad Hoc Sub-Committee to assist in drafting the Report; and selected Chair McLennan, Vice Chair Kramer, and Member Kosla to serve on the Sub-Committee Member Kosla inquired if other CCAs have generated similar reports for program recommendations to their Boards.
Director Riffey stated he would research this but had not found any currently available; and reminded the Committee that each of the CCAs are directed in differing areas of focus. Pioneer’s Board of Directors primarily focus on competitive rates.
Chair McLennan reminded the Committee that the Pioneer Board had requested this report.
Continued to discuss the Report preparation and outlined the Table of Contents.
Section I, Board Direction, and Section II, The Committee, have already been completed by the first ad hoc Sub-Committee; Section III, Work Methodology, includes the working documents used in the regular Committee meetings; Section IV, Education, and Section V, Recommendations, along with attachments will be the final focus.
Director Riffey defined the Recommendations to the Board as the request to receive and accept the Report and Direct staff to move forward with the availability of funding.
Entry No. 4
Continued discussion of Community Programs by rearranging and ranking programs in the Near-Term (<12 months), Mid-Term (12-36 months), and Long-Term (3-5 years) categories into clusters by priority.
This could assist in guiding decisions regarding stakeholders (PG&E, Roseville Electric, SMUD) which are heavily vested in electrification programs.
The Committee will add a column for programs to build upon; and will focus on Near-Term programs to begin as early as January pending availability of funding.
Discussed the Near Term (<12 months) programs.
LED Lighting and Smart Control – screw-in bulbs and troffers (retro kits). It was suggested that this program would be a cheaper, easy to acquire and install.
Permit Incentives - clarified that the program pays the owner to pull a permit for the project instead of doing work without a permit.
Community Programs Advisory Committee
June 22, 2022
Multi-family Direct Install – for the contractor to coordinate with property owners to permit the tenant to have work done, and the tenant must show proof of owner’s permission to do so.
Non-residential Non-profits – clarified that issues are not usually with government agencies but may be with small multi-family or small churches.
Discussed the Mid Term (12-36 months) programs.
Suggested to not prioritize in clusters due to the extended length of term but by prioritizing customer class. By that time, could better utilize results from Near-Term programs.
Discussed clustering programs in regard to cost effectiveness and cost benefit - bottom line: reducing and shifting the load.
HVAC tune up – high impact right away; expected high participation; highly successful; contractors will promote program to their customers.
Onsite EV Chargers (multi-family) – designate existing vs. new buildings; expect more participation in older existing buildings. It must be an existing building due to high expense – multi-family or school can be marketed by solar installers.
Reminder to be sensitive to all customer groups including low income, seniors, and disabled customers.
Marketing: add “education” to Near-Term programs – set aside funding for educating contractors and installers ; find key installers in area – enhanced rebates available, business for contractor, program accessible for customers.
EV Fleet Conversion and Chargers – install wall of chargers for commercial fleets (delivery vehicles, buses, metro transit).
Commercial Cooking Equipment – kitchens in restaurants, corporate offices, institutions such as churches, schools, and hospitals; must be at opportune time (equipment break down requiring a replacement); PG&E list of efficiency rated appliances.
State law electrification mandates will accelerate changes.
Focus: residential programs for whole house fans, pool pumps, HVAC tune ups; and multi-family programs for refrigerator replacement/recycling.
Discussed how hair blow dryers have a high draw on energy and it is extremely difficult to measure usage; and concluded that the program savings must be predictable and measurable.
Discussed Long-Term programs (3-5 years).
Utilize Pioneer to bring awareness and education to local community colleges and high schools.
Community Programs Advisory Committee
June 22, 2022
The Committee requested the Programs document be updated per today’s discussion and distributed to the Committee. Director Riffey confirmed distribution per request.
Discussed and updated the Programs document by adding Fuel Cells/Hydrogen on site.
Suggested a list of keywords and acronyms to be added to the final Report – Terms and Definitions.
Entry No. 5
Continued discussion of Barriers to Entry for Community Programs across all customer classifications.
Entry No. 6
Heard General Administration Functions, Part II.
A. Closing Comments
Chair McLennan expressed appreciation for Director Riffey and staff; and acknowledged former Member Akyol with well wishes and recognized his contribution to the Committee.
Heard closing comments from Mark Riffey, Director of Public Affairs, Marketing, and Programs.
Director Riffey confirmed distribution of the updated Programs document; and will contact Member Kramer regarding availability for ad hoc Sub-Committee meetings, then will schedule the July kick-off meeting.
B. Adjournment
The meeting adjourned at 3:33 PM.
The next regular meeting is scheduled for July 27, 2022, at 2:00 PM.
ATTEST:
Minutes approved as presented by a majority vote
of the Community Programs Advisory Committee on
July 27, 2022.
Teresa Willock, Board Secretary
Community Programs Advisory Committee
June 22, 2022
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Pioneer Community Energy
Glossary of Terms
CAISO – California Independent System Operator - a non-profit independent system operator that oversees the operation of the California bulk electric power system, transmission lines and electricity market generated and transmitted by its members (~80% of California’s electric flow). Its stated mission is to “operate the grid reliably and efficiently, provide fair and open transmission access, promote environmental stewardship and facilitate effective markets and promote infrastructure development. CAISO is regulated by FERC and governed by a five-member governing board appointed by the governor.
CALCCA – California Community Choice Association – Association made up of Community Choice Aggregation (CCA) groups which represents the interests of California’s community choice electricity providers.
CARB – California Air Resources Board – The CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change in California.
CEC – California Energy Commission
CPUC – California Public Utility Commission
C&I – Commercial and Industrial – Business customers
CP – Compliance Period – Time period to become RPS compliant, set by the CPUC (California Public Utilities Commission)
DA – Direct Access – An option that allows eligible customers to purchase their electricity directly from third party providers known as Electric Service Providers (ESP).
DA Cap – the maximum amount of electric usage that may be allocated to Direct Access customers in California, or more specifically, within an Investor-Owned Utility service territory.
DA Lottery – a random drawing by which DA waitlist customers become eligible to enroll in DA service under the currently-applicable Direct Access Cap.
DA Waitlist – customers that have officially registered their interest in becoming a DA customer but are not yet able to enroll in service because of DA cap limitations.
DAC – Disadvantaged Community
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DASR – Direct Access Service Request – Request submitted by C&I to become direct access eligible.
Demand - The rate at which electric energy is delivered to or by a system or part of a system, generally expressed in kilowatts (kW), megawatts (MW), or gigawatts (GW), at a given instant or averaged over any designated interval of time. Demand should not be confused with Load or Energy.
DER – Distributed Energy Resource – A small-scale physical or virtual asset (e.g. EV charger, smart thermostat, behind-the-meter solar/storage, energy efficiency) that operates locally and is connected to a larger power grid at the distribution level.
Distribution - The delivery of electricity to the retail customer’s home or business through low voltage distribution lines.
DLAP – Default Load Aggregation Point – In the CAISO’s electricity optimization model, DLAP is the node at which all bids for demand should be submitted and settled. Pioneer settles its CAISO load at the PG&E DLAP as Pioneer is in the PG&E transmission access charge area.
DR – Demand Response - An opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.
DWR – Department of Water Resources – DWR manages California’s water resources, systems, and infrastructure in a responsible, sustainable way.
ELCC – Effective Load Carrying Capacity – The additional load met by an incremental generator while maintaining the same level of system reliability. For solar and wind resources the ELCC is the amount of capacity which can be counted for Resource Adequacy purposes.
EPIC – Electric Program Investment Charge – The EPIC program was created by the CPUC to support investments in clean energy technologies that provide benefits to the electricity ratepayers of PG&E, San Diego Gas & Electric Company (SDG&E), and Southern California Edison Company (SCE)
ERRA – Energy Resource Recovery Account – ERRA proceedings are used to determine fuel and purchased power costs which can be recovered in rates. The utilities do not earn a rate of return on these costs, and only recover actual costs. The costs are forecast for the year ahead.
If the actual costs are lower than forecast, then the utility gives money back, and vice versa.
ESP – Energy Service Provider - An energy entity that provides service to a retail or end-use customer.
EV – Electric Vehicle
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GHG – Greenhouse gas - water vapor, carbon dioxide, tropospheric ozone, nitrous oxide, methane, and chlorofluorocarbons (CFCs). A gas that causes the atmosphere to trap heat radiating from the earth. The most common GHG is Carbon Dioxide, though Methane and others have this effect as well.
GRC – General Rate Case – Proceedings used to address the costs of operating and maintaining the utility system and the allocation of those costs among customer classes. For California’s three large IOUs, the GRCs are parsed into two phases. Phase I of a GRC determines the total amount the utility is authorized to collect, while Phase II determines the share of the cost each customer class is responsible and the rate schedules for each class. Each large electric utility files a GRC application every three years for review by the Public Advocates Office and interested parties and approval by the CPUC.
GWh – Gigawatt-hour - The unit of energy equal to that expended in one hour at a rate of one billion watts. One GWh equals 1,000 megawatt-hours.
IEP – Independent Energy Producers – California’s oldest and leading nonprofit trade association, representing the interest of developers and operators of independent energy facilities and independent power marketers.
IOU – Investor Owned Utility – A private electricity and natural gas provider.
IRP – Integrated Resource Plan – A plan which outlines an electric utility’s resource needs in order to meet expected electricity demand long-term.
kW – Kilowatt – Measure of power where power (watts) = voltage (volts) x amperage (amps) and 1 kW = 1000 watts
kWh – Kilowatt-hour – This is a measure of consumption. It is the amount of electricity that is used over some period of time, typically a one-month period for billing purposes. Customers are charged a rate per kWh of electricity used.
LCFS – Low Carbon Fuel Standard – A CARB program designed to encourage the use of cleaner low-carbon fuels in California, encourage the production of those fuels, and therefore, reduce greenhouse gas emissions.
LCR – Local (RA) Capacity Requirements – The amount of Resource Adequacy capacity required to be demonstrated in a specific location or zone.
LMP – Locational Marginal Price – Each generator unit and load pocket is assigned a node in the CAISO optimization model. The model will assign a LMP to the node in both the day- ahead and real time market as it balances the system using the least cost. The LMP is comprised of three components: the marginal cost of energy, congestion and losses. The LMP is used to financially settle transactions in the CAISO.
Load - An end use device or customer that receives power from an energy delivery system.
Load should not be confused with Demand, which is the measure of power that a load receives or requires. See Demand.
SE – Load-serving Entity – Entities that have been granted authority by state, local law or regulation to serve their own load directly through wholesale energy purchases and have chosen to exercise that authority.
NEM – Net Energy Metering – A program in which solar customers receive credit for excess electricity generated by solar panels.
NRDC – Natural Resources Defense Council
OIR – Order Instituting Rulemaking - A procedural document that is issued by the CPUC to start a formal proceeding. A draft OIR is issued for comment by interested parties and made final by vote of the five Commissioners of the CPUC.
MW – Megawatt – measure of power. A megawatt equals 1,000 kilowatts or 1 million watts.
MWH – Megawatt-hour – measure of energy
NP-15 – North Path 15 – NP-15 is a CAISO pricing zone usually used to approximate wholesale electricity prices in northern California in PG&E’s service territory.
PCC1 – RPS Portfolio Content Category 1 – Bundled renewables where the energy and REC are dynamically scheduled into a California Balancing Authority (CBA) such as the CAISO. Also known as “in-state” renewables.
PCC2 – RPS Portfolio Content Category 2 – Bundled renewables where the energy and REC are from out-of-state and not dynamically scheduled to a CBA.
PCC3 – RPS Portfolio Content Category 3 – Unbundled REC PCIA or “exit fee” - Power Charge Indifference Adjustment (PCIA) is an “exit fee” based on stranded costs of utility generation set by the California Public Utilities Commission. It is calculated annually and assessed to customers of CCAs and paid to the IOU that lost those customers as a result of the formation of a CCA.
PCL – Power Content Label – A user-friendly way of displaying information to California consumers about the energy resources used to generate the electricity they sell, as required by AB 162 (Statue of 2009) and Senate Bill 1305 (Statutes of 1997).
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PD – Proposed Decision – A procedural document in a CPUC Rulemaking process that is formally commented on by Parties to the proceeding. A PD is a precursor to a final Decision voted on by the five Commissioners of the CPUC.
Pnode – Pricing Node – In the CAISO optimization model, it is a point where a physical injection or withdrawal of energy is modeled and for which a LMP is calculated.
PPA – Power Purchase Agreement – A contract used to purchase the energy, capacity and attributes from a renewable resource project.
RA – Resource Adequacy - Under its Resource Adequacy (RA) program, the California Public Utilities Commission (CPUC) requires load-serving entities—both independently owned utilities and electric service providers—to demonstrate in both monthly and annual filings that they have purchased capacity commitments of no less than 115% of their peak loads.
RE – Renewable Energy - Energy from a source that is not depleted when used, such as wind or solar power.
REC - Renewable Energy Certificate - A REC is the property right to the environmental benefits associated with generating renewable electricity. For instance, homeowners who generate solar electricity are credited with 1 solar REC for every MWh of electricity they produce.
Utilities obligated to fulfill an RPS requirement can purchase these RECs on the open market.
RPS - Renewable Portfolio Standard - Law that requires CA utilities and other load serving entities (including CCAs) to provide an escalating percentage of CA qualified renewable power (culminating at 33% by 2020) in their annual energy portfolio.
SCE – Southern California Edison
SDG&E – San Diego Gas & Electric
SGIP – Self-Generation Incentive Program – A program which provides incentives to support existing, new, and emerging distributed energy resources (storage, wind turbines, waste heat to power technologies, etc.)
TCR EPS Protocol – The Climate Registry Electric Power Sector Protocol – Online tools and resources provided by The Climate Registry to assist organizations to measure, report, and reduce carbon emissions.
Time-of-Use (TOU) Rates — The pricing of delivered electricity based on the estimated cost of electricity during a particular time-block. Time-of-use rates are usually divided into three or four time-blocks per 24-hour period (on-peak, mid-peak, off-peak and sometimes super off-peak) and by seasons of the year (summer and winter). Real time pricing differs from TOU rates Page | 5
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in that it is based on actual (as opposed to forecasted) prices that may fluctuate many times a day and are weather sensitive, rather than varying with a fixed schedule.
TURN – The Utility Reform Network - A ratepayer advocacy group charged with ensuring that California IOUs implement just and reasonable rates.
Unbundled RECs - Renewable energy certificates that verify a purchase of a MWH unit of renewable power where the actual power and the certificate are “unbundled” and sold to different buyers.
VPP – Virtual Power Plant – A cloud-based network that leverages an aggregation of distributed energy resources (DERs) to shift energy demand or provide services to the grid.
For example, thousands of EV chargers could charge at a slower speed and hundreds of home batteries could discharge to the grid during a demand peak to significantly reduce the procurement of traditional supply resources.