Agenda Item: IV-B Agenda Date: 5/16/2024
PLACER FOOD BANK
Pioneer recently participated in a volunteer event at the Placer Food Bank. Many employees worked a shift bagging fruits and vegetables for distribution throughout Placer, El Dorado, and Nevada Counties. Pioneer is planning to volunteer again in early September.
COMMUNITY ADVISORY COMMITTEE ("CAC")
The CAC convened on May ist at Pioneer's office. Topics discussed included:
• Review of the Uplight Program that is being voted on by the Board. • Review of the expansion of the Greenlight Program that is on consent agenda. • Discussion of administrative issues.
CHIEF EXECUTIVE OFFICER POWER SUPPLY CONTRACTS EXECUTIED There are no items to report.
Presentations and Relevant Meetings attended by the Chief Executive Officer
1. Participated in CalCCA Weekly/Monthly Board meetings.
2. Participated in meetings with staff from Nevada and Tuolumne Counties regarding joining Pioneer.
ATTACHMENTS
1. Agenda Planning Document
2. Legislative and Regulatory Report
3. Marketing/Outreach Report
Agenda Planning Document - Pioneer Community Energy Updated 5-10-2024 MAY 16, 2024 JUNE 20, 2024 JULY 18, 2024 *SPECIAL MEETING* *SPECIAL MEETING* REGULAR MEETING BOARD OF (2:30 PM) CONVENE & (x PM) CONVENE & 3:00 PM IN THE FUTURE DIRECTORS Adjourn to Closed Session Adjourn to Closed Session (3:00 PM) RECONVENE (3:00 PM) RECONVENE (Post Agenda: July 12) (Post Agenda: May 10) (Post Agenda: June 14) *NO MEETING IN AUGUST" General Function I Closed Session Closed Session
Conference with Labor Negotiators Conference with Labor Negotiators Agency Negotiator: Board Chair Unrepresented: All Employees Unrepresented: Chief Executive Officer GC §54957.6
GC §54957.6
Public Report of Closed Session Public Report of Closed Session Agenda Review Agenda Review Agenda Review
Consent Minutes for Approval Minutes for Approval Minutes for Approval {JUNE} Reimbursement Policy 1a APRIL 25, 2024 MAY 16, 2024 JUNE 20, 2024
1b Receive Draft Financials: MAR 2024 Receive Draft Financials: APR 2024 Receive Draft Financials : MAY 2024 Joint-Rate Mailer (Stassi-Vanacore) (Koehn) (Koehn) (Koehn)
1c RES Contract Amendment - ZGlobal RES EE welfare & benefit modifications Power Content Label (Stassi-Vanacore) (Kang) (Koehn)
1d RES Contract - lobbyist (Kang) RES Marketing Contract (Stassi-Vanacore) 1e RES Contract Amendment- Greenlite RES Contract (Maher) (Stassi-Vanacore)
1f RES approving CEO Employment
Agreement Amendment No. 4
Regular RES Uplight program contract (action- IT Annual Audit (discussion-Koehn) Participate.Energy/ Pioneer Economic Biomass Project update (Kang) 2 Stassi-Vanacore) Review (action- Stassi-Vanacore)
3 Strategic Plan - Discussion Strategic Plan - Final Review Power Supply-State of the Markets Thule (Eckert) Kim Tucker (discussion-Eckert) Kim Tucker (discussion-Kang) AgFIT (discussion - Stassi-Vanacore) 4 FY 2024-25 Operating Budget RES FY 2024-25 Operating Budget Lobbyist report from the Capitol (SEPT} RES approving Strategic Plan ( discussion-Koehn) (action-Koehn) (discussion-Kang) (action-Eckert) Kim Tucker 5 2nd Amended & Restated JPA Update (SEPT) Update on Expansion ( discussion-Eckert) ( discussion-Eckert)
(OCT) Integrated Resource Plan (Kang)
RES ED>CEO t itle change per Board-approved Employment Agreement Amendment No. 3 (action> COi)
General Function II Chief Executive Officer's Report Chief Executive Officer's Report Chief Executive Officer's Report Chief Executive Officer's Report IV-8 REG Reports: Leg/Reg; Programs; REG Reports: Leg/Reg; Programs; REG Reports: Leg/ Reg; Programs; -QTRLY Updates requested by the Board Community Engagement; personnel Community Engagement; personnel Community Engagement; QTRLY Updates: JAN -APR- JULY -OCT introductions; NEM annual cash outs; JRM; introductions; Strategic Plan, Sponsorship Activity, Income . Strategic Plan Objectives Graduated Fixed Charge . Sponsorship Activity ■ Income Graduated Fixed Charge JV-C Informational Items Informational Items Informational Items Glossary of Terms Glossary of Terms Glossary of Terms
Agenda Planning Document - Pioneer Community Energy Up_dated 5-10-2024
AUDIT/FINANCE COMMITTEE TO BE SCHEDULED IN THE FUTURE
in-person & remote locations
Greg Janda, Chair
John Hidahl, Vice Chair
Gary Petersen
David Ring
ENERGY PROCUREMENT REVIEW TO BE SCHEDULED IN THE FUTURE AD HOC COMMITTEE zoom only Greg Janda, Chair Thule
Gary Petersen, Vice Chair
Alice Dowdin Calvillo
John Hidahl
EXPANSION TO BE SCHEDULED IN THE FUTURE AD HOC COMMITTEE (late August / early September) zoom only
Alice Dowdin Calvillo, Chair Impact Assessment Studies
David Yarbrough, Vice Chair
Jim Holmes
COMMUNITY ADVISORY COMMITTEE JUNE 26, 2024 IN THE FUTURE TO THE EXECUTIVE DIRECTOR Meets on the 4th Wednesday AUGUST 28
(even-numbered months) OCTOBER 23
DECEMBER 11
EMPLOYEE HEAL TH & WELFARE MAYS, 2024 JUNE 6, 2024
AD HOC COMMITTEE 9:00 AM 2:00 PM zoom only zoom only
Board Chair (Dowdin Calvillo)
Audit & Finance Committee Chair (Janda)
Evaluation of Employee Welfare & Benefit modifications Evaluation of Employee Welfare & Benefit modifications EPRC Chair (Janda)
Expansion Committee Chair (Dowdin Calvillo)
Plf)NEER
COMMUNITY ENERGY
Attachment: Legislative and Regulatory Update
Date: 5/16/2024
Legislative Affairs
• Pioneer submitted a letter of support for AB 2787 (Joe Patterson) which would ease the solar requirements for property owners that have lost their homes due to a wildfire. It has passed the Assembly and is currently in the Senate.
• Pioneer drafted a support letter for AB 2902 (Wood) which would, among other things, require CalRecycle to exclude residents included in department-issued low population or elevation waivers from the population in determining a local jurisdiction's organic waste procurement target. The bill is currently in the Assembly Committee on Appropriations.
• CalCCA's Legislative Committee has voted to send five bills to CalCCA's Board to support:
o AB 1834 (Garcia) would allow the CPUC or CEC to take into account mitigating factors when determining whether to force a Load Serving Entity (LSE) to make a payment to the Department of Water Resources (DWR) in the event DWR has to procure Resource Adequacy for a deficient LSE.
o AB 2329 (Muratsuchi) would consolidate several sources for electricity decarbonization, clean energy, and affordability into a newly established Climate Equity Trust Fund. Currently, ratepayer charges on bills provide funding for a variety of programs mandated by the state legislature or CPUC. AB 2329 would move costs off of bills and have the impacted programs paid via different funds from the Climate Equity Trust Fund. This fund would be administered by the California Affordable Decarbonization Authority which is jointly administered by the CPUC and CEC.
o AB 2672 (Petrie-Norris) would require management of master metered facilities to pass on CARE benefits to their residents.
o SB 1014 (Dodd)
o SB 1095 (Becker) would allow residents in Home Owner Associations (HOA) to switch appliances from gas to electric without being in violation of any existing HOA rules. • AB 1999 was amended on May 8, 2024, which essentially revived the bill in the Assembly. As amended, the bill would cap the maximum amount the fixed charge could be at $10 per month, sunset the fixed charge in July 2028 and repeal it as of January 1, 2029.
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.22-07-005 Order Instituting Rulemaking Limit negative impacts of the (OIR) to advance Demand Income Based Graduated Fixed
Flexibility through electric rates Charge and educate Pioneer Board and customers prior to
the rollout.
R.22-10-010 Order Instituting Rulemaking to Expeditiously implement AB Implement AB 843 (2022) - 843 to allow CCA access to the The Bioenergy Adjusting Tariff BioMAT program for future Program
Attachment: 2 Agenda Date: 5/16/2024
subsidies for biomass
procurement
A.20-02-009; A.21-03-008; PG&E 2019 Energy Resource Reduce the ERRA impact on the A.21-06-001; A.22-05-029 Recovery Account (ERRA) PCIA; increase data Compliance Application; PG&E transparency from the IOUs 2020 ERRA Compliance
Application; 2021 ERRA
Compliance Application; 2022
ERRA Compliance Application;
2023 ERRA Compliance
Application; 2023 ERRA
Forecast Application; 2024
ERRA Forecast Application
R.20-08-020 Rulemaking to develop a Mitigate impacts to Pioneer NBT successor to existing Net customers and inform
Energy Metering (NEM) tariffs customers of upcoming changes and to review and refine to the program
existing NEM tariffs
R.21-03-011 Provider of Last Resort (POLR) Limit the impacts of changes to Order Instituting Rulemaking the Financial Security
Requirement (FSR)
R.17-09-020; R.19-11-009; Resource Adequacy (RA) Refine the current RA Program R.21-10-002 Reform & Implementation construct; reduce volatility of Tracks RA prices; increase RA
procurement availability and
grid reliability
R.18-12-005 Utility De-energization, Public Reduce impacts of PSPS and Safety Power Shutoffs (PSPS), EPSS events; increase
and Enhanced Powerline Safety coordination and
Settings (EPSS) communications with IOUs to
ensure public safety during de-energization; limit PSPS and EPSS impacts on CCA load
scheduling
CEC - OIR - 21-0IR-03, 23- Load Management Standards Ensure Pioneer Maintains LMS-01 (LMS) compliance with CEC mandates
and requirements
AB 843 OIR:
• October 20, 2022- The OIR was opened to examine the implementation of AB 843. • April 28, 2023- Workshop held.
• November 30, 2023- CPUC voted to approve the revised Proposed Decision, which clarified many of the issues raised in the comments of the PD, while retaining the favorable outcome for CCAs. • January 2, 2024- the IOUs submitted their Tier 2 ALs modifying the BioMAT Tariff to incorporate CCAs. • January 29, 2024- 60 days from the Decision- CCAs finalized two provisions with Accion for website work and third-party administrator. In addition, CCAs submitted a revised tariff, a program participation request, power purchase agreement, rate schedule, and balancing statement as part of a Tier II AL to the CPUC. • February 1, 2024, Tier III ALs were submitted by 4 CCAs indicating interest in participating in the BioMAT program (3CE, Pioneer, RCEA, and OCPA).
• February 23, 2024, CalCCA submitted a 15-day extension until March 14 to meet the requirement for the central BioMAT Accion webpage and standard framework for individual CCA webpages within 90 days of the
Attachment: 2 Agenda Date: 5/16/2024
decision due to an issue raised by Accion in the third-party administrator Statement of Work that the CCAs, IOUs, and Accion are attempting to resolve.
• February 25, 2024, RCRC submitted reply comments in support of the Joint CCAs proposal to consider extending the BioMAT program sunset date.
• March 1, 2024, A group of CCAs (Pioneer, RCEA, 3CE, OCPA, MCE, and VCE) submitted comments in the RPS proceeding asking the CPUC to consider expediting consideration of an extension to the BioMAT program beyond 2025.
• March 5, 2024, there is an agreement with Accion as the Third-Party Administrator. The agreement has been reviewed and signed by Pioneer as well as the other 3 CCAs. • On March 13, 2024, CalCCA submitted a second request for extension of time for an additional 15-day extension.
• March 20, 2024, CPUC granted CalCCA's first request for a 15-day extension of time. • March 21, 2024, there was a meeting with CPUC staff on implementation of AB 843. Brad Hill will be moving over to Natural Resources Agency.
• March 28, 2024 Assembly Member Aguiar-Curry submitted a letter of support to the CPUC for the extension of the BioMAT program. This letter included the support of other legislators: Senator Alvarado-Gil, Senator Dahle, Senator Talamantes Egg man, and Assembly Member Dahle. • March 28, 2024 CalCCA submitted a third request for extension of time for an additional 31-day extension of time (until April 29) for the central BioMAT Accion webpage and standard framework for individual CCA webpages to be completed within 90 day of the effective date of the decision. Work has been delayed pending final agreement from all parties to revisions to the third-party administrator Statement of Work. • April 4, 2024, there was a prehearing conference to address the preliminary scope of issues in the OIR for IRP where the Joint CCAs are asking for an extension of the BioMAT program. During this conference, Scott Blaising represented the Joint CCAs and asked for 1) the CPUC to expedite the extension of the BioMAT program and 2) broadly review the program.
• May 1, 2024 CPUC approved the joint CCAs Tier 2 Advice Letter which approved the BioMAT standard program documentation which included the tariff, the pro-forma power purchase agreement, program participation request forms, BioMAT program website and portal development contracts, independent third-party contracts, initial balancing account statements, and non-bypassable charge rate scheduled.
Demand Flexibility:
• June 30, 2022- AB 205 passed giving the CPUC the authority to approve a pricing structure that incorporates an Income Based Graduated Fixed Electricity Charge (IGFC). • July 14, 2022- The Commission issued an OIR to begin this proceeding to establish demand flexibility policies and modify electric rates to advance the following objectives: 1) enhance the reliability of California's electric system; 2) make electric bills more affordable and equitable; 3) reduce the curtailment of renewable energy and greenhouse gas emissions associated with meeting the state's future system load; 4) enable widespread electrification of buildings and transportation to meet the state's climate goals; 5) reduce long-term system costs through more efficient pricing of electricity; and 6) to enable participation in demand flexibility by both bundled and unbundled customers. • July 31, 2023- Parties submitted Comments on the IGFC Implementation Pathways considering the ALJ Ruling's questions.
• August 21, 2023- CalCCA submitted Reply Comments to refute parties' arguments regarding including the PCIA or Competitive Transition Charge (CTC) as fixed costs eligible for inclusion in the IGFC. • October 27, 2023- 22 Democratic lawmakers sent a letter to the CPUC asking for an extension of the timeline for the proceeding and require public participation hearings before implementing an IGFC. • November 3, 2023- Track A (IGFC)- CalCCA filed a reply brief continuing to refute party proposals that the PCIA be included in the IGFC and noting that the parties advocating for inclusion of the PCIA have not addressed the arguments put forth by CalCCA.
Attachment: 2 Agenda Date: 5/16/2024
• December 15, 2023- Track B (demand flexibility)- The CPUC issued a PD which directs PG&E to expand the Valley Clean Energy Ag-Fit pilot program. CCAs that participate in the expanded pilot may receive $20/kW for each year of customer enrollment in the PGE Ag-Fit pilot as an incentive. The incentive is capped at $1.8 million for PG&E's territory. The budgets are for all the CCAs wanting to participate to share. PG&E will be administering the pilot so there will be no administrative costs, but several of the CCAs want to have a say in how the pilot is administered and the education and outreach of the pilot. December 18, 2023- Track A (IGFC)- CPUC issued a ruling requesting implementation information from the IOUs on the IGFC. The ruling directs the IOUs to file additional information about the proposed budgets for implementing the first income-graduated fixed charges by January 24, 2024. • January 23, 2024-(Track B) There was a revised PD on the expanded pilots. Pioneer is considering offering the expanded Ag-Fit program to its customers. The pilot will be administered by PG&E so it will involve minimal work on behalf of Pioneer staff, but it will also bolster our Load Management Standards program and keep us competitive with PG&E.
• January 26, 2024- The CPUC approved the expanded pilots revised decision. In D.24-01-032 to Advance Demand Flexibility Through Electric Rates, the CPUC directed PG&E to expand the Valley Clean Energy Ag Real Time Pricing Pilot (VCE AgFIT Pilot). The decision orders PG&E to extend the duration and expand participation of the VCE Ag FIT Pilot to agricultural customers throughout PG&E's service territory. • January 30, 2024- (Track A)- There was a press conference held by a group of 20 Democratic Legislators calling for the repeal of income-graduated fixed charge. AB 1999 would repeal the income-graduated fixed charge approved under AB 205 (2022) and replace it with a $5 fixed charge for CARE customers and a $10 fixed charge for all other residential customers.
• February 13, 2024 Pioneer staff sent PG&E an email indicating interest in possibly participating in the expanded pilot expansion program, particularly the Ag Pilot. • February 13, 2024 at the Senate Utilities, Energy and Communications hearing the IGFC was brought up by CPUC president, Alice Reynolds, who indicated the CPUC was working on an IGFC decision possibly by the end of Ql.
• March 1, 2024 there is an expanded pilot workshop to address dual participation, since some demand flexibility programs are dual enrollment prohibited. Dual Participation is allowed for- Critical Peak Pricing:
(Peak Day Pricing and SmartRate), Electrification Rates: (E-ELEC), TOU Rates (E-TOU, E-TOU-D), Simple NEM and NBT, and ELRP Subgroup A: (Al-A6). Dual Participation is Prohibited- Supply-Side DR Programs (BIP, CBP, ART, DRAM, non-DRAM DR RA Contracts, DSGS Option 2), Flex Market Pilot, DAHRTP, ELRP Subgroup B: Bl-B2, and Other Event-Based Load-Modifying Programs (OBMC, SLRP). • March 25, 2024, PG&E submitted their Tier 2 AL for implementation plans for PG&E's Expanded Ag Pilot. 5 CCAs have expressed an interest in participating in PG&E's Ag Pilot in 2024 (Ava, SVCE, VCE, 3CE, and Pioneer). PG&E will launch the pilot in June of 2024. Participants will continue to pay their current bill and will receive the shadow bill, which they will not pay. The shadow bill will illustrate a customer's potential savings under the dynamic pilot rate. There is also a $20 per unbundled kW per year incentive, subject to a $1.8 million cap for all CCA incentives.
• March 27, 2024, the CPUC issued a proposed decision addressing AB 205 (Income Graduated Fixed Charge) requirements for electric utilities. The earliest this proposed decision could be adopted is May 9, 2024. This decision authorizes all IOUs to shift the recovery of a portion of fixed costs from volumetric rates to a separate, fixed amount on bills without changing the total costs that utilities may recover from customers.
As a result, this decision reduces the volumetric price of electricity (in cents per kilowatt hour) for all residential customers of IOUs. The CPUC did not adopt the IOUs' proposal and instead the proposal would have Tier 1 (customers enrolled in CARE) pay $5 a month, Tier 2 (customers enrolled in FERA or who live in affordable housing restricted to residents with incomes at or below 80% of Area Median Income) pay $12 a month, and Tier 3 (all other customers) pay $24.15 per month. This new billing structure would apply to all residential rates of the IOUs, except for master-meter rates that are not sub-metered. • May 9, 2024 CPUC approved implementation of the Income Graduated Fixed Charge without any changes to the structure described in the previous bullet.
Net Billing Tariff (NBT):
Attachment: 2 Agenda Date: 5/16/2024
• December 15, 2022- The CPUC issued a PD that was voted out unanimously. New solar customers that sign up after April 14, 2023, will be placed on NBT. This Proceeding created 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.
• August 2, 2023- The CPUC issued a Proposed Decision on the remaining issues in the NBT proceeding, including virtual NEM, enhanced consumer protection, and fuel cell participation. • August 8 ,2023- Comments were filed by Joint CCAs: SDCP, PCE, Pioneer, SCP, RCEA, and SJCE. The comments argued that the Proposed Decision, with some adjustments, can improve bill clarity for NEM customers and future NBT customers.
• September 14, 2023- A California appeals court will hear a lawsuit seeking to overturn the CPUC's rooftop solar decision which would significantly reduce the credits customers receive. • September 16, 2023- There was a letter signed by members of the Legislature on the NEM program for agricultural users.
• October 26, 2023- Joint CCAs have held ex parte meetings with the CPUC, and President Reynolds, who recommended meeting with the Energy Division.
• October 30, 2023- Energy Division released a Proposed Resolution approving the IOUs NBTs, with modifications.
• November 2, 2023- CPUC has delayed their decision implementing Virtual Net Energy Metering (VNEM) and other aspects of NBT until November 16, 2023, at the earliest. • November 16, 2023- CPUC adopted revision 2 of the VNEM Decision. • November 20, 2023- PG&E requested an extension of time to comply with the Residential Net Billing Tariff to August 31, 2024. Pioneer led a coalition of CCAs that submitted a letter to the CPUC in support of the extension request to allow for a more enhanced customer service process. • December 14, 2023- CPUC granted an extension for PG&E until April 15, 2024. • December 20, 2023- An appeals court in San Francisco upholds the CPUC decision on the vote to overhaul rooftop solar rules. Protect Our Communities Foundation, Center for Biological Diversity, and the Environmental Working Group filed the lawsuit. This decision could be taken to the Supreme Court. • Week of April 22, 2024- Pioneer will send a postcard to all customers impacted or potentially impacted by the Solar Billing Plan. Themed as "Top 5 Things to Know About the Sollar Billing Plan," this mailer clarifies information provided in PG&E's required mailers and will arrive before customers receive bills that reflect changes due to the Solar Billing Plan. Roughly 175 customers in Pioneer's service area will be immediately affected. The mailer will go to all 723 customers with interconnection applications pending, as well as those who will see billing changes over the next year (about 1,800).
PG&E ERRA Compliance and ERRA Forecast:
• The ERRA Proceedings act 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-a-vis collected revenues through the IOUs' General Rate Case (GRC) which ultimately affects CCA rates through the Power Charge Indifference Adjustment (PCIA).
• May 14, 2023- PG&E's 2023 - 2024 ERRA Forecast and Testimony was released. • June 1, 2023- NewGen sent over the new rate forecast spreadsheet. The forecast looks good with the PCIA remaining negative over many vintages, but this will change before the October Update. • June 16, 2023- Keyes and Fox filed a Protest to PG&E's Forecast Application. • August 10, 2023- CalCCA filed a Protest to PG&E's ERRA Trigger Application proposing a rate increase in November to correct and account for under-collections.
• September 6, 2023- CalCCA provided Testimony on the 2024 PG&E ERRA Forecast case and touched upon the fixed generation cost issue .
• October 16, 2023- PG&E's October Update to its 2024 ERRA Forecast came out. Energy prices have softened relative to PG&E's original forecast (which would, all else equal, cause PCIA rates to increase), but RA and RPS benchmarks have increased significantly since PG&E's filing (dampening the impact of energy prices).
Attachment: 2 Agenda Date: 5/16/2024
All told, forecast rates increased relative to the original forecast across the board, but forecast rates remain negative for vintages 2021 and later.
• November 1, 2023- Keyes and Fox submitted comments on PG&E's ERRA Trigger proposal and comments on PG&E's October update.
• November 16, 2023- The CPUC unanimously approved the Alternate Proposed Decision and indicated that "the decision balances a myriad of competing interests- affordability, feasibility, safety, and reliability." PG&E requested $15.4 billion for 2023 and the decision reduced that amount by $1.8 billion to $13.5 billion.
This is an 11 % increase from the authorized 2022 revenue requirement. For the typical residential customer, their combined monthly electric and natural gas bill will increase by $32.62 or 12.8%, compared to PG&E's request of $38.73 or 17.9% increase.
• November 30, 2023- The PD for the PG&E ERRA Forecast came out. There were a couple of disputed issues including whether to amortize the 2023 trigger balance over 6 months or 12. CalCCA was asking for 12 and PG&E was asking for 6 months. The CPUC adopted PG&E's recommendation. The second issue was whether PG&E should apply a first-in-first-out methodology to the use of excess prior year RECs or a last-in-first-out methodology. The CPUC ruled with PG&E on a last-in-first-out methodology. • December 12, 2023- A revision to the proposed decision came out and CalCCA won its argument on first-in-first-out, meaning the CPUC is requiring PG&E to use a first-in-first-out methodology for RECs banked in or after 2019.
• December 29, 2023- PG&E submitted their Annual True-Up to change PG&E's electric rates on January 1, 2024.
• March 21, 2024, there was a Preliminary Issue Review with Keyes and Fox. 2021 ERRA proceeding is still open but coming to an end, 2022 is still busy and 2023 is just starting up. Some of the big issues to watch include PG&E's RA Sales and Accounting; DWR reimbursement to PG&E; and Retained, Sold and Unsold RPS.
Resource Adequacy:
• May 25, 2023- The CPUC issued a PD barring non-compliant LSEs from expansion for two calendar years following a system RA deficiency.
• June 14, 2023- CalCCA filed Opening Comments recommending the CPUC fully reject the PD's restrictions on LSE expansion due to RA deficiencies and modify the RA deficiency penalty. • June 19, 2023- CalCCA filed reply comments on June 19, 2023. • June 27, 2023- a Redlined PD was issued. The revisions included: adopting a one percent minimum threshold for RA deficiencies that would limit CCA expansions; clarifying that if an LSE "cures" its year-ahead RA deficiency in the month-ahead timeframe, the year-ahead deficiency will not be applied to the expansion requirement.
• June 29, 2023- The PD was adopted by the Commission.
• July 26, 2023- CalCCA and CCCE filed two Applications for Rehearing (AfR) of the decision to limit CCA expansion for two years due to uncured RA deficiencies. CalCCA's PfR cited a lack of CPUC statutory authority to limit CCA expansion, and that it gives itself new unauthorized powers to needlessly discriminate against CCAs to prevent their growth; it also asserted, that without credible evidence, the CPUC determined that addition of new CCA load would be detrimental to grid reliability, and that the decision violates the CPUC's legal requirement to apply RA enforcement measures in a nondiscriminatory manner, not just to CCAs.
• October 5, 2023- CalCCA filed a Petition for Writ of Review of Resolution E-5258 and D.23-08-052 over the decision with the First Appellate District.
• On September 19, 2023, PG&E and SCE submitted their annual CPE reports. PG&E is short RA for all months - up to 4,400 MW.
• October 12, 2023- The Commission opened the new RA proceeding through its Order Instituting Rulemaking (OIR). The OIR proposes the scope, schedule, and administration of this next RA proceeding. • November 9, 2023- CalCCA submitted comments recommending additional scoping items for the RA proceeding, including additional refinements to the RA program for the local RA CPE, compliance and penalty structure, SOD transactability, and RA import rules.
Attachment: 2 Agenda Date: 5/16/2024
• December 14, 2023- CPUC denied CalCCA's request for a rehearing of the decision on RA procurement obligations and the prohibition against CCA expansion for failure to comply. • January 17, 2024- Petition for Writ of Review prohibition of CCA expansion filed. Shell also filed a petition for somewhat different reasons. CPUC is seeking to consolidate since there are two filings. CalCCA did not oppose the motion.
• January 19, 2024- Proposals due in the RA proceeding for Track 1, addressing time-sensitive issues that must be resolved for the 2025 RA compliance year. CalCCA has identified 3 major problems that the RA proposals should address: RA market scarcity, the potential exercise of market power, and removing the economic incentives not to comply. CalCCA is seeking to remove the prohibition from CCA expansion in the event of noncompliance and add the ability for the CPUC to waive penalties if CCAs can show reasonable efforts to comply were unsuccessful. The RA proposal approved by CalCCA's Board included a temporary waiver proposal for system and flexible RA from 2025 to 2027. Partial waivers would waive the penalty points and non-fiscal consequences and a full waiver would also be available that would waive financial penalties as well under certain circumstances. A slice of day waiver would also be available. • February 14, 2024, there was Proposal Workshop to discuss the various proposals. Since not everyone was able to make a presentation, there was a second workshop on February 28 where CalCCA presented its proposal.
• February 23, 2024, there was a SOD proposal workshop. CalCCA is asking for a delay in SOD implementation from 2025 until 2026 because the showing and compliance tools are not working properly. • March 22, 2024, CalCCA submitted comments on the RA Program with regards to considering RA reforms and refinements and establishing forward RA procurement obligations. CalCCA believes the focus should be to adopt proposals that protect customers against excessive RA costs and increase RA capacity availability. • March 22, 2024- The CPUC issued a response to CalCCA's Writ Petition #2 and denied that a writ should be issued. Comments are due May 16.
Utility Deenergization, PSPS, and EPSS:
• July 12, 2022-Pioneer, along with Joint CCAs, Joint Local Governments, and Rural County Representatives of California (RCRC), filed a motion with the CPUC on July 12, 2022, to consider EPSS issues in the Deenergization or its own Proceeding. The arguments in the motion seek to treat EPSS events with the same regulations and oversight as Public Safety Power Shutoff (PSPS) events. • September 21, 2023- The CPUC approved a PSPS citation program for violations of the established PSPS guidelines.
• August 30-31, 2023- PG&E provided a post PSPS report. A total of 3,928 customers were deenergized. • October 10, 2023- The Joint CCAs, RCRC, and Joint Local Governments had a meeting with the Public Advocates Office to see if there is agreement on the need to further do more with regards to Fast Trips. The Public Advocates Office indicated that the CPUC and Office of Energy Infrastructure Safety are not inclined to act to regulate Fast Trips and that more data is needed. The Public Advocates Office is looking to submit a report in the beginning of 2024.
• January 16, 2024- The data for December's Fast Trips and YTD data came out. These are the following circuits in Pioneer's territory with 8 or more outages in 2023:
o Placerville 2106 (EDH)- 19
o Apple Hill 2102 (EDH)- 18
o Shingle Springs 2109 (EDH)- 11
o Mountain Quarries 2101 (EDH)- 11
o El Dorado PH 2101 (EDH)- 11
o Clarksville 2104 (EDH)- 9
o Apple Hill 2104 (EDH)- 9
o Lincoln 1101 (Placer)- 8
o Penryn 1103 (Placer)- 8
o Penryn 1107 (Placer)- 8
o Brunswick 1105 (Nevada)- 17
Attachment: 2 Agenda Date: 5/16/2024
o Brunswick 1106 (Nevada)- 15
• January 29, 2024- A data request was made by joint CCAs (including Pioneer) using the circuits listed above to PG&E requesting the number of customers served by each circuit, the number of life support customers, the number of medical baseline customers, and the number of critical facilities served by each circuit. • March 8, 2024 part of the information we were seeking regarding the data request came back. Pioneer staff will be reviewing this information.
Provider of Last Resort (POLR):
• October 2, 2019- SB 520 passed requiring the establishment of a Provider of Last Resort (POLR). As part of the proceeding to implement SB 520, the CPUC is seeking to establish new policies to plan for and prevent catastrophic failures in the event of an unplanned return en masse of CCA customers to IOU service.
Additionally, the CPUC will review and update existing procedures and policies for Financial Security Requirements (FSR), reentry fees, and LSE deregistration process and compliance requirements. • July 31, 2023- CalCCA's Reply Briefs were submitted and address PG&E's proposal to modify the FSR to reflect two months of forecast energy costs, other parties' recommendations on elements of the existing FSR calculation, mandatory contract assignments, financial monitoring, and the duration of POLR service. • March 14, 2024, the CPUC came out with a proposed decision. April 18 is the first opportunity the CPUC could adopt the decision. The proposed decision has a mix of favorable and unfavorable decisions. For example, it rejected PG&E's proposal to require FSR postings to reflect 2 months of POLR service, it maintains the ability to use service bonds, and it keeps confidential the information about LSEs that trigger financial monitoring. However, the proposed decision also approved using PG&E's Administrative Fee ($4.24) without sufficient evidence of the costs, the CPUC should clarify that November 2024 FSR Calculation would be the earliest possible calculation under the new rules, and the CPUC should clarify the timing of the second tier of reporting requirements so CCAs know when to evaluate their metrics. The biggest issue the proposed decision addressed was updating the FSR requirements. The minimum remains $147,000, but now CCAs must use the IOU's Administrative and multiply that figure by the number of accounts the CCA has.
The higher of that amount or the $147,000 will be the new FSR. For CCAs that are in PG&E's territory the administrative fee is $4.24 per customer, while the other IOUs' administrative fees are significantly less (around $.50 per customer). If the final decision requires CCAs within PG&E's service territory to use PG&E's administrative fee, all CCAs within PG&E's service territory will likely be paying an FSR well over the $147,000 minimum.
• April 23, 2024, CPUC adopted a revised POLR Decision inclusive of several of CalCCA's requests. Specifically:
o Reducing RA costs in the FSR by accounting for returning CPE RA allocations, in addition to the CAM and DR RA allocations.
o Nets PCIA in the FSR whether the PCIA is positive or negative. o Affirms current timing for calculating FSRs.
o Provides CCAs with an additional 60 days to file first FSR following IOU tariffs implementing this decision.
o Requires CCAs to file the Tier 1 audited financial report to Energy Division once a year, in January or July, whichever comes earlier relative to the availability of the audited financial statement.
o Allows 90 days for CCAs to submit joint advice letter on new CCA registration process.
CEC Load Management Standards (LMS):
• October 12, 2022- The CEC adopted the Load Management Standards regulation which requires the development of a statewide standard tool for authorized rate data access by third parties that is compatible with each IOU, large POUs, and large CCAs with the idea that electricity customers or their authorized third-party agents can look at rates that the customer is eligible to switch and allow the customer to change the customer's current rate to rates they are eligible for. • June 8, 2023- CEC staff provided a schedule of the key LMS adoption and compliance dates. • August 1, 2023- Pioneer, through Calpine, uploaded its rates and will continue to work with Calpine on
Attachment: 2 Agenda Date: 5/16/2024
uploading all time dependent rates to meet deadlines.
• January 17, 2024- Workshop on implementation of LMS. Comments on the workshop are due on January
31. • March 21, 2024- Pioneer's LMS plan presented to the Pioneer's Board for approval. • March 26, 2024- Pioneer submitted the Board-approved LMS plan. • April 1, 2024, all large CCAs are required to file their plan for compliance with LMS regulations. • April 16, 2024, CEC held a scoping meeting to discuss development of the statewide rate access tool.
Discussion on how the tool will be funded are ongoing.
Marketing and Outreach Report
May 16, 2024
Notable Accomplishments
• KCRA-Channel 3 featured Pioneer Community Energy in its Studio Story on April 9, providing an excellent visibility opportunity. The sponsored story received 985K
impressions, 3,160 clicks, and 67 clicks to links in the story.
• Active involvement in local chambers resulted in
recognition as a partner and source of energy-related
information.
• The launch of programs is supported by marketing efforts to promote program participation, as well as the
reinforcement of messaging about local input and
Pioneer’s commitment to the communities we serve.
April Outreach
Community outreach efforts during April included the addition of Field Days in expansion communities, as well as increased participation in and presentations to the Government Relations committees of several local chambers.
Outreach Efforts Expand to Include Participation in Chamber Committees As with the chatbot, there was a
slight decrease in traffic to the
website during April, likely due
to the refinement of our paid
social media campaign,
including a sight pause in
running ads.
With an average of two
conversations per day, there
was a slight decrease in
chatbot activity during April.
Chatbot conversation time also
decreased in March.
The satisfaction rating for April
increased from 4 to 4.5 stars.
April interactions:
• 20,500 (down from 22K in
March)
Total Conversations:
• 34
• Average of 2 per day
Average conversation length:
• 5.75 minutes
Customer satisfaction rating
• 4.5
Chatbot By the Numbers Website
• Field Days: Auburn Senior
Center, Grass Valley City Hall,
Lincoln, Cameron Park/Shingle
Springs
• Rocklin GRC meeting
• El Dorado Hills Chamber
Business Lunch Sponsor and
presentation
• Loomis Chamber GRC
• Rocklin Chamber Morning
Business Meeting
• Rocklin Chamber Sunrise
Meeting
• Nevada City Co-Housing
Neighborhood Association
presentation
• Lincoln Chamber GRC meeting
• Grass Valley Field Day
• Lincoln Chamber Business
Roundtable Sponsor and booth
• Lincoln Chamber CEO
sponsorship meeting
Pioneer was featured in KCRA-Channel 3’s
Studio Story in April
Paid Advertising Focuses on Savings, Service and Programs Both the general awareness and expansion campaigns are still running, focusing on savings, service, and the introduction of programs. Ads are appearing on radio, bus shelters, and digitally.
General awareness efforts also include paid social media ads and a special segment on KCRA’s Studio Story. Expansion ads are running in print, radio, and paid digital and reinforce messages about choice and savings.
• Ads are running
weekly in multiple
publications of The
Union newspaper
• ~15,000 circulation
• Audacy Radio
• Over the air
o KKDO 94.7
o KUDL 106.5 The End
o KSEG 96.9 The Eagle
– 768,400 impressions
• Streaming
- 128,698 impressions
• OTT/CTV
- 201,329 impressions
- 344 clicks/.14 CTR
• iHeartRadio
o KFBK 93.1
o Talk 650 KSTE
–492,698 impressions
• Capital Public Radio
o 90.9 KXJZ
o 88.9 KXPR
• Banner Ads/App Ads/
Newsletter Ads
- 261,756 impressions
Radio
Out of Home/Bus Shelters
• El Dorado County
– 2.2M impressions (Dec-May)
Television
• KCRA 3 – commercials
• 1.35 M Impressions
• Studio Story
o Read time average 5m 44s
o 985,000 impressions
o 3,160 clicks
o 67 clicks to links in the story
Google and paid social ads are
running until the budget is exhausted
or 5/31/24
Paid Digital Advertising
• 3,935,933 impressions
• 24,183 clicks
Google
General Awareness
Expansion
Newsprint
Radio
Ads are running on hyper-local
KVMR radio, which broadcasts
to over 50,000 listeners.
Paid Digital Advertising
Google, paid social media and
banner ads with YubaNet are
running.
Google and paid social ads
target our service area by zip
code and 18+ male and female
demographics.
Google
- 219,977 impressions
- 2,417 clicks
YubaNet
- 331,836 impressions
- 56 clicks
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
DASR- Direct Access Service Request- Request submitted by C&I to become direct access eiigible.
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. !RP- 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 Page I 3
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.
PCCl - 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 I 5
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.
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