AGENDA – BOARD OF DIRECTORS – SAN DIEGO COMMUNITY POWER 1 AGENDA
Regular Meeting of the Board of Directors of
San Diego Community Power (SDCP)
May 26, 2022
5:00 p.m.
The meeting will proceed as a teleconference meeting in compliance with waivers to certain provisions of the Brown Act provided for under Government Code section 54953(e)(1)(A), in relation to the COVID-19 State of Emergency and recommended social distancing measures. There will be no location for in-person public attendance. In compliance with the Brown Act, SDCP is providing alternatives to in-person public attendance for viewing and participating in the meeting. Further details are below.
Note: Any member of the public may provide comments to the Board of Directors on any agenda item.
When providing comments to the Board, it is requested that you provide your name and city of residence for the record. Commenters are requested to address their comments to the Board as a whole through the Chair. Comments may be provided in one of the following manners:
1. Providing Oral Comments During Meeting. To provide comments during the meeting, join the Zoom meeting by computer, mobile phone, or dial-in number. On Zoom video conference by computer or mobile phone, use the “Raise Hand” feature. This will notify the moderator that you wish to speak during a specific item on the agenda or during non-agenda Public Comment.
Members of the public will not be shown on video but will be able to speak when called upon. If joining the meeting using the Zoom dial-in number, you can raise your hand by pressing *9.
Comments will be limited to three (3) minutes. Please be aware that the Chair has the authority to reduce equally each speaker's time to accommodate a large number of speakers.
2. Written Comments. Written public comments must be submitted prior to the start of the meeting by using this (web form). Please indicate a specific agenda item when submitting your comment.
All written comments received prior to the meeting will be provided to the Board members in writing. In the discretion of the Chair, the first ten (10) submitted comments shall be stated into the record of the meeting. Comments read at the meeting will be limited to the first 400 words.
Comments received after the start of the meeting will be collected, sent to the Board members in writing, and be part of the public record.
If you have anything that you wish to be distributed to the Board, please provide it via [email protected] and it will be distributed to the Members.
The public may participate using the following remote options:
Teleconference Meeting Webinar https://zoom.us/j/94794075133 Telephone (Audio Only) (669) 900-6833 or (346) 248-7799 | Webinar ID: 947 9407 5133 AGENDA – BOARD OF DIRECTORS – SAN DIEGO COMMUNITY POWER 2 Welcome
Call to Order
Pledge of Allegiance
Roll Call
Items to be Added, Withdrawn, or Reordered on the Agenda Public Comments
Opportunity for members of the public to address the Board on any items not on the agenda but within the jurisdiction of the Board. Members of the public may provide a comment in either manner described above.
Consent Calendar
All matters are approved by one motion without discussion unless a member of the Board of Directors requests a specific item to be removed from the Consent Calendar for discussion. A member of the public may comment on any item on the Consent Calendar in either manner described above.
1. Approval of Findings to Continue Holding Remote/Teleconference Meetings Pursuant to Assembly Bill 361
2. Approval of January 20, 2022 Meeting Minutes for Regular and Closed Session
3. Receive and File Treasurer’s Report for Period Ending 3/31/22
4. Update on Back Office Metrics/Dashboard
5. Update on Marketing and Public Relations
6. Approval of San Diego Community Power Ticket and Pass Distribution Policy Regular Agenda
The following items call for discussion or action by the Board of Directors. The Board may discuss and/or take action on any item listed below if the Board is so inclined.
7. Presentation of the FY 2023 Operating Budget
Recommendation: Receive and file presentation of the FY 2023 Operating Budget
8. Discussion on 2022 Legislative Platform and AB 2838; Update on Legislative and Regulatory Items
Recommendation: Review and discuss SDCP 2022 Legislative Platform; Discuss SDCP position on AB 2838; Receive and discuss update on pending legislation and regulatory items
9. Update on Power Resources
Recommendation: Receive and file update on Power Resources
10. Update on Customer Energy Programs
Recommendation: Receive and file update on Customer Energy Programs AGENDA – BOARD OF DIRECTORS – SAN DIEGO COMMUNITY POWER 3 Reports by Management and General Counsel
SDCP Management and General Counsel may briefly provide information to the Board and the public.
The Board may engage in discussion if the specific subject matter of the report is identified below, but the Board may not take any action other than to place the matter on a future agenda. Otherwise, there is to be no discussion or action taken unless authorized by law.
Director Comments
Board Members may briefly provide information to other members of the Board and the public, ask questions of staff, request an item to be placed on a future agenda, or report on conferences, events, or activities related to SDCP business. There is to be no discussion or action taken on comments made by Directors unless authorized by law.
Adjournment
Compliance with the Americans with Disabilities Act
SDCP Board of Directors meetings comply with the protections and prohibitions of the Americans with Disabilities Act. Individuals with a disability who require a modification or accommodation, including auxiliary aids or services, in order to participate in the public meeting may contact (888) 382-0169 or [email protected]. Requests for disability-related modifications or accommodations require different lead times and should be provided at least 72-hours in advance of the public meeting.
Availability of Board Documents
Copies of the agenda and agenda packet are available at https://sdcommunitypower.org/resources/meeting-notes/. Late-arriving documents related to a Board meeting item which are distributed to a majority of the Members prior to or during the Board meeting are available for public review as required by law. Previously, public records were available for inspection at San Diego Community Power at Moniker Commons, located at 2869 Historic Decatur Road, San Diego, CA 92106. However, due to the Governor’s Executive Orders N-25-20 and N-29-20 and the need for social distancing, in-person inspection is now suspended. Public records, including agenda-related documents, can instead be requested electronically at [email protected] or by mail to SDCP, 815 E Street, Suite 12716, San Diego, CA 92112. The documents may also be posted at the above website.
SAN DIEGO COMMUNITY POWER
Staff Report – Item 1
--------------------------------------------------------------------------------------------------------------------- To: San Diego Community Power Board of Directors
From: Ryan Baron, General Counsel
Subject: Findings to Continue Holding Remote/Teleconference Meetings Pursuant to Assembly Bill 361
Date: May 26, 2022
---------------------------------------------------------------------------------------------------------------------
RECOMMENDATION
Find and determine that the Board has reconsidered the circumstances of the COVID-19 State of Emergency; the State of Emergency remains in effect; state or local officials continue to impose or recommend social distancing measures; and meetings of SDCP legislative bodies may be held remotely in compliance with Government Code section 54953(e) for the next 30 days.
BACKGROUND
As more fully described in the staff report for the October 28, 2021 meeting related to AB 361, the State of California has adopted AB 361, which allows public agencies to hold fully or partially virtual meetings under certain circumstances without being required to follow certain Brown Act teleconferencing requirements. Under AB 361, a legislative body holding a fully or partially virtual meeting pursuant to AB 361 must make certain findings at least every thirty (30) days to continue holding such meetings.
If the Board desires to continue allowing Directors and members of SDCP committees to participate remotely pursuant to AB 361, the Board must reconsider the COVID-19 State of Emergency, find that the proclaimed State of Emergency remains in effect, and find either: (1) that state or local officials continue to impose or recommend measures to promote social distancing; or (2) that as a result of the COVID-19 emergency, meeting in person would present imminent risks to the health or safety of attendees.
ANALYSIS AND DISCUSSION
Based on the continued COVID-19 State of Emergency and continued required or recommended social distancing measures, as initially described in the staff report for October 28, 2021 meeting relating to AB 361, the Board may make the findings necessary to continue allowing Board members and members of all SDCP committees to participate remotely pursuant to AB 361.
FISCAL IMPACT
None.
ATTACHMENTS
None.
MINUTES – BOARD OF DIRECTORS – SAN DIEGO COMMUNITY POWER 1 SAN DIEGO COMMUNITY POWER (SDCP)
BOARD OF DIRECTORS
MINUTES
January 20, 2022
This meeting was conducted utilizing teleconferencing and electronic means consistent with Government Code Section 54953, as amended by Assembly Bill 361, in relation to the COVID-19 State of Emergency and recommended social distancing measures.
The Board minutes are prepared and ordered to correspond to the Board Agenda. Agenda Items can be taken out of order during the meeting.
The Agenda Items were considered in the order presented.
WELCOME
CALL TO ORDER
Chair Mosca (Encinitas) called the SDCP Board of Directors meeting to order at 5:30 p.m.
PLEDGE OF ALLEGIANCE
Chair Mosca (Encinitas) led the Pledge of Allegiance.
CEREMONIAL OATH OF OFFICE
Executive Assistant/Assistant Board Clerk Isley administered the Oath of Office to Director LaCava (San Diego).
ROLL CALL
PRESENT: Chair Mosca (Encinitas), Vice Chair Padilla (Chula Vista), Director Dedina (Imperial Beach), Director Baber (La Mesa), Alternate Director Bush (National City), Director LaCava (San Diego), and Director Lawson-Remer (San Diego County) ABSENT: Director Sotelo-Solis (National City)
Also Present: Interim Chief Executive Officer (“CEO”) Carnahan, Chief Operating Officer (“COO”) Hooven, General Counsel Baron, Interim Board Clerk Wiegelman
REPORT FROM CLOSED SESSION
815 E Street Suite 12716
San Diego, California 92112
MINUTES – BOARD OF DIRECTORS – SAN DIEGO COMMUNITY POWER 2 General Counsel Baron announced there were no reportable actions from Closed Session.
ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED ON THE AGENDA There were no items to be added, withdrawn, or reordered.
PUBLIC COMMENTS
Matthew Greenbergs inquired about the 2022 rate increase.
Jim Whalen spoke regarding financially feasible energy pricing.
Curtis Dowds spoke regarding solar energy and the rules and laws regulating solar energy.
CONSENT CALENDAR
(Items 1 through 8)
1. Approval of September 23, 2021 Meeting Minutes
Approved.
2. Receive and File Treasurer’s Report for Period Ending 11/30/2021 Received and filed.
3. Receive and File 6/30/21 Fiscal Year End Audited Financial Statement Received and filed.
4. Appointment of Director LaCava to the Finance and Risk Management Committee Approved.
5. Update on Back Office Metrics/Dashboard
Received and filed.
6. Update on Regulatory and Legislative Affairs
Received and filed.
7. Update on Community Advisory Committee
Received and filed.
8. Update on Residential Enrollment Public Relations
Received and filed.
MINUTES – BOARD OF DIRECTORS – SAN DIEGO COMMUNITY POWER 3 ACTION: Motioned by Alternate Director Bush (National City) and seconded by Director LaCava (San Diego) to approve Consent Calendar Items 1 through 8. The motion carried by the following vote:
Vote: 7-0
Yes: Chair Mosca (Encinitas), Vice Chair Padilla (Chula Vista), Director Dedina (Imperial Beach), Director Baber (La Mesa), Alternate Director Bush (National City), Director LaCava (San Diego), and Director Lawson-Remer (San Diego County) No: None
Abstained: None
Absent: None
REGULAR AGENDA
9. Election of Chair and Vice Chair for Calendar Year 2022 Chair Mosca and Vice Chair Padilla expressed their interest in continuing to serve as Chair and Vice Chair.
Board questions and comments ensued.
ACTION: Motioned by Alternate Director Bush (National City) and seconded by Director Dedina (Imperial Beach) to appoint Director Mosca (Encinitas) as Board Chair and Director Padilla (Chula Vista) as Vice Chair for Calendar Year 2022. The motion carried by the following vote:
Vote: 7-0
Yes: Chair Mosca (Encinitas), Vice Chair Padilla (Chula Vista), Director Dedina (Imperial Beach), Director Baber (La Mesa), Alternate Director Bush (National City), Director LaCava (San Diego), and Director Lawson-Remer (San Diego County) No: None
Abstained: None
Absent: None
10. Approval of 2022 Rates
Interim CEO Carnahan, COO Hooven, Chief Financial Officer (“CFO”)/Treasurer Washington, and Data Analytics and Account Services Director Utouh provided an overview of the 2022 rates, highlighting the rate setting process, the guiding principles of the process, the 2021/2022 rates timeline, the pro forma analysis, the fiscal impact with no rate change, the fiscal impact with the proposed rates, the projected bill comparison for small commercial and residential customers, and how SDCP rates compare to San Diego Gas & Electric (“SDG&E”) rates.
Board questions and comments ensued.
Curtis Dowds spoke regarding the residential demand response rate schedule.
Board questions and comments continued.
MINUTES – BOARD OF DIRECTORS – SAN DIEGO COMMUNITY POWER 4 ACTION: Motioned by Director LaCava (San Diego) and seconded by Alternate Director Bush (National City) to approve the rates to be effective as of February 1, 2022. The motion carried by the following vote:
Vote: 5-1
Yes: Chair Mosca (Encinitas), Vice Chair Padilla (Chula Vista), Director Dedina (Imperial Beach), Alternate Director Bush (National City), and Director LaCava (San Diego) No: Director Baber (La Mesa)
Abstained: None
Absent: Director Lawson-Remer (San Diego County)
11. Update on CEO Search Ad Hoc Committee Efforts
Vice Chair Padilla (Chula Vista) provided an update on the CEO search and reviewed the next steps in the process.
Following Board questions and comments, no action was taken.
REPORTS BY MANAGEMENT AND GENERAL COUNSEL
Interim CEO Carnahan reported on the CEO search, Phase 3 rollout, and the strategic planning workshop tentatively scheduled for March 4, 2022.
DIRECTOR COMMENTS
None.
ADJOURNMENT
Chair Mosca (Encinitas) adjourned the meeting at 6:30 p.m.
Megan Wiegelman, CMC
Interim Board Clerk
MINUTES – BOARD OF DIRECTORS – SAN DIEGO COMMUNITY POWER 1 SAN DIEGO COMMUNITY POWER (SDCP)
BOARD OF DIRECTORS
815 E Street Suite 12716
San Diego, California 92112
SPECIAL MEETING MINUTES
January 20, 2022 – 4:00 PM
This meeting was conducted utilizing teleconferencing and electronic means consistent with AB 361 (2021).
The Board minutes are prepared and ordered to correspond to the Board Agenda. Agenda Items can be taken out of order during the meeting.
The Agenda Items were considered in the order presented.
CALL TO ORDER
Chair Mosca (Encinitas) called the SDCP Board of Directors Special meeting to order at 4:00 PM
ROLL CALL
PRESENT: Chair Mosca (Encinitas), Vice Chair Padilla (Chula Vista), Director Dedina (Imperial Beach), Director Baber (La Mesa), Alternate Director Bush (National City), Director LaCava (San Diego), and Director Lawson-Remer (San Diego County) ABSENT: Director Sotelo-Solis (National City)
Also Present: Cindy Krebs, Alliance Resource Consulting, General Counsel Baron and Counsel Norvell
PUBLIC COMMENTS ON CLOSED SESSION ITEMS
There were no public comments.
CLOSED SESSION
ACTION ITEM
1. Approval of Findings to Continue Holding Remote/Teleconference Meetings Pursuant to Assembly Bill 361
MINUTES – BOARD OF DIRECTORS – SAN DIEGO COMMUNITY POWER 2 Recommendation: Find and determine that the Board has reconsidered the circumstances of the COVID-19 State of Emergency; the State of Emergency remains in effect; state or local officials continue to impose or recommend social distancing measures; and meetings of SDCP legislative bodies may be held remotely in compliance with Government Code section 54953(e) for the next 30 days.
2. PUBLIC EMPLOYEE APPOINTMENT PURSUANT TO GOVERNMENT CODE SECTION 54957
Title: Chief Executive Officer
3. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6
Agency designated representative(s): Cindy Krebs, Alliance Resource Consulting Unrepresented employee: Chief Executive Officer
REPORT FROM CLOSED SESSION
General Counsel Baron announced there were no reportable actions from Closed Session.
ADJOURNMENT
Chair Mosca (Encinitas) adjourned the closed session meeting at 5:30 pm
SAN DIEGO COMMUNITY POWER
Staff Report – Item 3
-------------------------------------------------------------------------------------------------------------------- To: Financial and Risk Management Committee
From: Eric Washington, Chief Financial Officer
Via: Karin Burns, Chief Executive Officer
Subject: Treasurer’s Report –Presentation of Financial Results for Fiscal Year 2022 Period ended 3/31/22
Date: May 26, 2022
--------------------------------------------------------------------------------------------------------------------
RECOMMENDATION
1. Receive and File Report
BACKGROUND
San Diego Community Power (SDCP) maintains its accounting records on a full accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) as applicable to governmental enterprise funds.
SDCP has prepared year-to-date financial statements for the period ended March 31, 2022, along with budgetary comparisons.
ANALYSIS AND DISCUSSION
Financial results for the period ended 3/31/22: $251.38 million in net operating revenues were reported compared to $253.50 million budgeted for the period. $245.79 million in total expenses were reported (including $239.80 million in energy cost) compared to $249.86 million budgeted for the period (including $242.31 million budgeted for energy costs). After expenses, SDCP’s change in net position of $5.59 million was reported for Fiscal Year 2022. The following is a summary of the actual results compared to the Fiscal Year 2022 Budget.
• Net operating revenues finished -$2.12 million (or -0.8 percentage points) under the amended budget primarily as a result of a timing differential related to billing.
Budget Comparison
YTD FY22 as of
3/31/22 (9 mos)
FY22 YTD
Budget
Budget
Variance ($) Budget (%)
Net Operating Revenues $ 251,375,501 $ 253,498,793 $ (2,123,292) 99 Total Expenses $ 245,788,242 $ 249,855,356 $ (4,067,114) 98 Change in Net Position $ 5,587,259 $ 3,643,437 $ 1,943,822 • Operating expenses finished -$4.07 million (or -1.6 percentage points) under the amended budget
Financial results for the period were over the projections presented in the year-to-date proforma. SDCP’s change in net position was 27.92% over the projection primarily due to lower-than projected energy costs. This was partially offset by lower-than expected net operating revenue.
The following is a summary to actual results compared to the fiscal year-to-date proforma.
COMMITTEE REVIEW
The report was reviewed by the Financial Risk Management Committee (FRMC) on May 12, 2022.
FISCAL IMPACT
N/A
ATTACHMENTS
Attachment A: 2022 Year-to-Date Period Ended 3/31/22 Financial Statements Proforma Comparison
YTD FY22 as of
3/31/22 (9 mos)
FY22 YTD
ProForma
ProForma
Variance ($) Proforma (%)
Net Operating Revenues $ 251,375,501 $ 253,054,678 $ (1,679,177) -0.66% Total Expenses $ 245,788,242 $ 248,686,920 $ (2,898,678) -1.17% Change in Net Position $ 5,587,259 $ 4,367,758 $ 1,219,501 27.92% $-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
Net Operating Revenues Total Expenses Change in Net Position YTD FY22 Results v. Proforma
YTD FY22 as of 3/31/22 (9 mos) FY22 YTD ProForma
1 ACCOUNTANTS’ COMPILATION REPORT
Management
San Diego Community Power
Management is responsible for the accompanying financial statements of San Diego Community Power (a California Joint Powers Authority) which comprise the statement of net position as of March 31, 2022, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
April 28, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Current assets
Cash and cash equivalents 6,512,357 $
Accounts receivable, net 20,229,932
Accrued revenue 14,278,465
Prepaid expenses 818,878
Deposits 6,012,057
Total current assets 47,851,689
Noncurrent assets
Restricted cash 10,000,000
Deposits 3,450,000
Total noncurrent assets 13,450,000
Total assets 61,301,689
Current liabilities
Accrued cost of energy 39,351,938
Accounts payable 815,108
Other accrued liabilities 413,942
Security deposits 754,000
Interest payable 70,256
Total current liabilities 41,405,244
Noncurrent liabilities
Other noncurrent liabilities 517,741
Bank note payable 22,840,082
Loans payable 5,000,000
Total noncurrent liabilities 28,357,823
Total liabilities 69,763,067
Unrestricted (8,461,378)
Total net position (deficit) (8,461,378) $
NET POSITION
SAN DIEGO COMMUNITY POWER
STATEMENT OF NET POSITION
As of March 31, 2022
ASSETS
LIABILITIES
See accountants' compilation report. 2
OPERATING REVENUES
Electricity sales, net 251,375,501 $
OPERATING EXPENSES
Cost of energy 239,801,680
Contract services 1,788,762
Staff compensation 2,351,528
General and administration 1,400,744
Total operating expenses 245,342,714
Operating income 6,032,787
NONOPERATING EXPENSES
Interest and financing expense 445,528
Nonoperating expenses 445,528
CHANGE IN NET POSITION 5,587,259
Net position at beginning of period (14,048,637)
Net position at end of period (8,461,378) $
SAN DIEGO COMMUNITY POWER
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Nine Months Ended March 31, 2022
See accountants' compilation report. 3
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 231,001,249 $
Receipts of supplier security deposits 184,000
Other operating receipts 5,596,638
Payments to suppliers for electricity (218,041,178)
Payments for goods and services (3,086,717)
Payments to employees for services (2,289,392)
Payments for deposits and collateral (6,573,708)
Payments for state surcharges (560,365)
Net cash provided (used) by operating activities 6,230,527
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Interest and related expense payments (438,736)
Net cash provided (used) by non-capital
financing activities (438,736)
Net change in cash and cash equivalents 5,791,791
Cash and cash equivalents at beginning of period 10,720,566 Cash and cash equivalents at end of period 16,512,357 $ Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) 6,512,357
Restricted cash 10,000,000
Cash and cash equivalents 16,512,357 $
SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS
Nine Months Ended March 31, 2022
See accountants' compilation report. 4
Operating income 6,032,787 $
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities
Provision for uncollectible accounts 2,539,146
(Increase) decrease in:
Accounts receivable (21,652,957)
Accrued revenue (2,058,156)
Other receivables 4,043,272
Prepaid expenses (818,878)
Deposits (5,562,057)
Increase (decrease) in:
Accrued cost of electricity 23,207,217
Accounts payable 452,826
Other accrued liabilities 75,977
Due to State of California 237,350
Supplier security deposits (266,000)
Net cash provided (used) by operating activities 6,230,527 $
SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS (continued)
Nine Months Ended March 31, 2022
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
See accountants' compilation report. 5
1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
San Diego Community Power
Management is responsible for the accompanying special purpose statement of San Diego Community Power (SDCP), a California Joint Powers Authority, which comprise the budgetary comparison schedule for the period ended March 31, 2022, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of SDCP.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
SDCP’s annual audited financial statements will include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows.
Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to SDCP because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
April 28, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 2021/22
YTDAmended
Budget
2021/22 YTD
Actual
2021/22 YTD
Amended
Budget
Variance
(Under) Over
2021/22
YTD
Actual/
Amended
Budget %
2021/22 Annual
Amended
Budget
2021/22
Amended
Budget
Remaining
REVENUES AND OTHER SOURCES Gross Ratepayer Revenues 255,351,504 253,914,647 $ (1,436,857) 99% 380,816,532 $ 126,901,885 $ Less Uncollectible Customer Accounts (1,852,711) (2,539,146) (686,435) 137% (2,763,026) (223,880) Total Revenues and Other Sources 253,498,793 251,375,501 (2,123,292) 378,053,506 126,678,005 OPERATING EXPENSES Cost of Energy 242,309,646 239,801,680 (2,507,966) 99% 329,517,592 89,715,912 Personnel Costs 2,711,092 2,351,528 (359,564) 87% 4,023,175 1,671,647 Professional Services and Consultants 2,416,754 1,450,872 (965,882) 60% 5,126,016 3,675,144 Marketing and Outreach 1,144,311 1,061,205 (83,106) 93% 1,748,699 687,494 General and Administrative 539,605 677,429 137,824 126% 783,581 106,152 Total Operating Expenses 249,121,408 245,342,714 (3,778,694) 341,199,063 95,856,349 Operating Income (Loss) 4,377,385 6,032,787 1,655,402 36,854,443 30,821,656 NON-OPERATING REVENUES (EXPENSES) Debt Service and Bank Fees (733,948) (445,528) 288,420 61% (978,000) (532,472) Total Non-Operating Revenues (Expenses) (733,948) (445,528) 288,420 (978,000) (532,472) CHANGE IN NET POSITION $ 5,587,259 3,643,437 $ 1,943,822 $ 35,876,443 $ 30,289,184 $
SAN DIEGO COMMUNITY POWER
BUDGETARY COMPARISON SCHEDULE
Nine Months Ended March 31, 2022
SAN DIEGO COMMUNITY POWER
Staff Report – Item 4
-------------------------------------------------------------------------------------------------------------------- To: San Diego Community Power Board of Directors
From: Lucas Utouh, Director of Data Analytics and Account Services Via: Karin Burns, Chief Executive Officer
Subject: Update on Back-Office Metrics and Dashboard
Date: May 26, 2022
--------------------------------------------------------------------------------------------------------------------
RECOMMENDATION
Receive update on various back-office activities.
BACKGROUND
Staff will provide regular updates to the Board of Directors regarding San Diego Community Power’s (SDCP) back-office activities centered around tracking opt actions (i.e., opt outs, opt ups and opt downs) as well as customer engagement metrics. The following is a brief overview of items pertaining to back-office operations.
ANALYSIS AND DISCUSSION
A) Phase 3 Enrollment Update
Staff is happy to report that our Phase 3 efforts for Imperial Beach, La Mesa, Encinitas and Net Energy Metering (NEM) customers with a true up month of February, March and April are now complete. Our largest mass enrollment in Chula Vista and City of San Diego along with May NEM customers’ mass enrollment efforts are currently underway and so far as of 5/19/2022, our cumulative count of active accounts being served under our portfolio currently stands at 396,908.
B) AMI Data Privacy Audit
Consistent with CPUC’s Decision 12-08-045, SDCP completed the 2021 Triennial AMI Data Privacy Audit as well as the Annual AMI Data Privacy Audit and our audit engagement firm i.e., Abbott, Stringham & Lynch (ASL) noted no CPUC’s requirement exceptions. The IT Audit Specialists ascertained that SDCP implemented technical and physical safeguards to protect Covered Information acquired, stored, processed, or shared by SDCP from unauthorized access, disclosure, destruction, use or modification.
Key IT documentation such as policies and procedures related to both general IT controls and Covered Information are scoped and updated. Data sharing with third-party vendors (TPV) is tracked and secured. The IT Audit Specialists also used third-party risk-ranking service, BitSight, to provide additional context around SDCP’s risk rating specific to the utilities space and concluded that SDCP is currently ranked in the top 10% of utility companies.
C) Participation Tracking
Staff and Calpine have worked together to create a reporting summary of customer actions to opt-out, opt-up to Power100 or opt-down from Power100 to PowerOn. The below charts summarize these actions accordingly as of May 16th, 2022:
I. Opt Outs
II. Opt Ups to Power100
III. Opt Downs from Power100
IV. Participation Rate.
For Phase 3, this participation rate is fluid and will change as we ramp up mass enrollment across all member cities throughout 2022. The true participation rate will be computed once customers across all member cities are fully enrolled. In the interim, we are reporting on the opt outs and eligible accounts associated with the phase on a rolling basis as of the reporting month:
D) Contact Center Metrics
Consistent with expectations after our pre-enrollment notices drop in City of San Diego and Chula Vista, call and email volumes have exponentially increased over the last month i.e. April. We are expecting call volumes to remain relatively high in May and certainly through June and July as customers in Chula Vista and City of San Diego start seeing SDCP’s generation charges on their bills. The chart below summarizes contact made by customers broken down by month through May 16th:
In analyzing this data set since our pre-enrollment notifications started dropping to customers' mailboxes in December, we see the trend of our customers calling into our Contact Center’s Interactive Voice Response system tree and being able to self-serve their opt actions using the recorded prompts in nearly 50% of instances. The other half of customer calls are connected to our Customer Service Representatives to answer additional questions, assist with account support, or submit opt actions.
We have a total of 30 Customer Service Representatives staffed at our Contact Center and are also continuing to enforce our robust Quality Assurance (QA) procedures to ensure that our customers are getting a world-class customer experience when they contact us.
COMMITTEE REVIEW
N/A
FISCAL IMPACT
N/A
ATTACHMENTS
N/A
SAN DIEGO COMMUNITY POWER
Staff Report – Item 5
--------------------------------------------------------------------------------------------------------------------- To: San Diego Community Power Board of Directors
From: Rita de la Fuente, Director of External Affairs
Via: Karin Burns, Chief Executive Officer
Subject: Residential Enrollment Marketing Public Relations Update Date: May 26, 2022
---------------------------------------------------------------------------------------------------------------------
RECOMMENDATION
Receive and file update on Phase 3 Marketing and Public Relations (PR) Campaign for residential enrollment.
BACKGROUND
San Diego Community Power (SDCP) is working with Civilian, Inc. (Civilian) on an array of marketing activities to drive awareness, spark community engagement, and minimize opt-outs during the Phase 3 Residential Enrollment period (Residential Enrollment). The Phase 3 Marketing and PR Campaign began in December with direct mail enrollment notices to residents and will continue throughout the months following Residential Enrollment with various tactics to educate and engage customers.
ANALYSIS AND DISCUSSION
SDCP has had a successful engagement campaign during the Residential Enrollment of Imperial Beach, La Mesa and Encinitas. There has been a steady increase of traffic to SDCP’s website since the beginning of the Residential Enrollment campaign. Since January 1, 81.3% of website visitors have been new visitors. This month, staff and Civilian have continued to actively promote residential service to San Diego and Chula Vista, the largest group of customers.
Public Engagement Events
SDCP has recently participated in the following outreach events:
4/30/22 NAACP Every Day is Earth Day
5/2/22 University City Democratic Club Presentation
5/4/22 South Bay Farmer's Market
5/5/22 National City Community Design Workshop
5/10/22 Chula Vista Community Collaborative Partners Meeting Presentation 5/11/22 La Mesa Rotary Presentation
5/17/22 Kiwanis Club of Scripps Ranch Presentation
SDCP is tentatively scheduled to participate in the following upcoming outreach:
6/2-6/3/22 Environmental Training Symposium & Conference 6/8/22 Gameday sponsor of the Fernando Tatis Jr. Player’s Hat Giveaway 6/10/22 San Diego Regional Bike Summit
6/21/22 American Federation of Teachers, Retiree Chapter Presentation Paid Media
Creative Concepts and behavioral research-based messaging continue to build trust and relatability during Residential Enrollment. These ads will be seen in English and Spanish social media ads (Twitter, Facebook, Instagram, Nextdoor) through June and regionwide digital display through July.
SDCP also has a presence in print publications including the Union-Tribune, El Latino, Star News, Voice & Viewpoint Filipino Press, Nquoi Viet Tu Do, San Diego Chinese Tribune, and other smaller community publications.
Radio ads began in April and will continue through July. Billboard advertising and convenience store posters have also been introduced, providing an outdoor presence in communities with less access to online technology.
Power100 Champion Comarketing
During the current Residential Enrollment, SDCP announced Sharp HealthCare and the San Diego Padres as our newest Power100 Champions. Each of these announcement campaigns were successful in generating positive engagement.
Aside from customer partnerships, SDCP continues to explore and develop local partnerships with community organizations such as the San Diego Bike Coalition.
Highlighting partnerships with regional community leaders creates trust, credibility, and regional pride.
Communications and Outreach Strategy
PR strategies continue with press releases and outreach to regional media. The local media has shown great interest in SDCP’s Residential Enrollment, with over 100 individual articles or broadcast clips that were published online during residential enrollment. SDCP news reached a wide audience throughout the regions since coverage is seen in a broad mix of newspapers, TV and radio, as well as online news outlets and Spanish news media. Mainstream media news was picked up by community press, and combined with the op-eds published, helped increase familiarity with SDCP and the concept of Community Choice in hyper local markets.
Editorials authored by Community Advisory Committee members have been published in each city’s local paper, with San Diego’s editorial scheduled to publish this month. Staff and Civilian continues to provide speaking points and prepared social media posts to advocates, who have proven to be excellent spokespeople in communicating to the public and targeted groups.
At the end of Residential Enrollment for San Diego and Chula Vista, SDCP is coordinating a media event to celebrate the final stage of residential roll-out, thank Power100 Champions, and report out on progress toward climate action goals and other metrics.
The event will be held on June 8, 2022 at Petco Park, and will be followed by a cobranded giveaway night with the San Diego Padres when they play the New York Mets.
COMMITTEE REVIEW
This item was reviewed by the Community Advisory Committee on May 13, 2022.
FISCAL IMPACT
N/A
ATTACHMENTS
N/A
SAN DIEGO COMMUNITY POWER
Staff Report – Item 6
--------------------------------------------------------------------------------------------------------------------- To: San Diego Community Power Board of Directors
From: Lee Friedman, Key Accounts Manager
Via: Karin Burns, Chief Executive Officer
Subject: Approval of Ticket and Pass Distribution Policy Date: May 26, 2022
---------------------------------------------------------------------------------------------------------------------
RECOMMENDATION
Adopt Resolution 2022-07 approving a Ticket and Pass Distribution Policy pursuant to FPPC Regulation 18944.1 and other FPPC regulations.
BACKGROUND
Fair Political Practices Commission (FPPC) Regulation 18944.1 establishes rules by which tickets or passes received and distributed by local government agencies to government officials for use for official public business will not constitute reportable gifts under the Political Reform Act (Gov. Code § 81000, et seq.) as long as the agency complies with specified distribution and reporting requirements.
Staff is recommending that the Board of San Diego Community Power (SDCP) adopt a Ticket and Pass Distribution Policy (Policy) to establish best management practices and ensure that any future tickets or passes that SDCP is provided, purchases or are otherwise acquired are distributed pursuant to Regulation 18944.1.
If adopted, the Policy would require that tickets and passes distributed by SDCP under the Policy be disclosed on FPPC Form 802 and posted to SDCP’s website within forty-five days of distribution, as required by Section 18944.1(d).
This Policy would apply to tickets and passes that provide admission to a facility, event, show or performance for an entertainment, amusement, recreational or similar purpose, and are either:
1. Gratuitously provided to SDCP by an outside source;
2. Acquired by SDCP by purchase;
3. Acquired by SDCP as consideration pursuant to the terms of a contract for the use of an SDCP venue; or
4. Acquired and distributed by SDCP in any other manner.
If adopted, the Policy would apply to all members of SDCP, including any officers, employees, consultants, Board members, or other appointed officials.
ANALYSIS AND DISCUSSION
General Provisions
The general terms of the Ticket and Pass Distribution Policy are set to ensure fair use and distribution of any tickets or passes acquired by SDCP and allow for disciplinary action up to and including dismissal and/or termination of contract, if violated.
Other general provisions include rules regarding how tickets/passes can be used (both by the agency and by those receiving the tickets), the authority of the CEO to establish further procedures for distribution (in accordance with the Policy and any applicable rules or regulations of the FPPC), and how to establish the value of the tickets/passes.
Public Purposes
SDCP shall only provide a ticket and/or pass to a Public Official, or at the behest of a Public Official, to accomplish a public purpose. The policy provides an illustrative list of public purposes ranging from rewarding volunteer public service, recognizing meritorious service by an SDCP employee, promotion of community programs and resources available to residents within SDCP’s service area, or facilitating the performance of a ceremonial role or function by a Public Official on behalf of SDCP at an event.
Reporting and Disclosure
If approved, the Ticket and Pass Distribution Policy shall be posted on SDCP’s website in a prominent manner, and it shall be the duty of CEO or their designee to ensure SDCP’s compliance with Section 18944.1(d) pertaining to the reporting of the distribution of tickets by SDCP.
If SDCP is reimbursed from the Public Official within 30 days or otherwise treats any received tickets/passes as income (consistent with applicable federal and state income tax laws), the ticket/passes shall not be subject to disclosure provisions of the Policy or treated as a gift.
Otherwise, all tickets/passes distributed by SDCP to any Public Official pursuant to the Policy must be recorded on Form 802 or, on such alternative form(s) as may from time to time be designated by the FPPC. This form must be maintained as a public record, and be subject to inspection and copying as required under Government Code section 81008(a). Within 45 days of distributing a ticket or pass, SDCP must post these forms on its website and email a website link to the FPPC that displays the form, and the form must contain the information required by Section 18944.1 (d).
COMMITTEE REVIEW
N/A
FISCAL IMPACT
N/A
ATTACHMENTS
Attachment A: Resolution No. 2022-07 Adopting a Ticket and Pass Distribution Policy Attachment B: San Diego Community Power Ticket and Pass Distribution Policy 55682.00001\34968988.1
San Diego Community Power
Ticket and Pass Distribution Policy
Effective Date: 5/26/2022
SECTION 1. Purpose
The purpose of this Ticket and Pass Distribution Policy (“Policy”) is to ensure that all tickets and/or passes provided to San Diego Community Power (“SDCP”) are distributed in furtherance of a public purpose as required under Section 18944.1, Title 2, of the California Code of Regulations (“Section 18944.1”) and in such a manner that the ticket and/or pass will not constitute a reportable gift under the Political Reform Act, provided that the ticket/pass is distributed pursuant to the provisions of this Policy. The Board of Directors has determined that tickets and passes distributed for the purposes listed in Section 6 of this Policy are distributed for a public purpose.
In addition, the purpose of this Policy is to ensure that tickets and passes distributed by SDCP under this Policy are disclosed on Form 802 and posted to SDCP’s website within forty-five days of distribution, as required by Section 18944.1(d).
SECTION 2. Applicability
This Policy applies to tickets and passes that provide admission to a facility, event, show or performance for an entertainment, amusement, recreational or similar purpose, and are either:
a. Gratuitously provided to SDCP by an outside source;
b. Acquired by SDCP by purchase;
c. Acquired by SDCP as consideration pursuant to the terms of a contract for the use of an SDCP venue; or
d. Acquired and distributed by SDCP in any other manner.
SECTION 3. Scope
This Policy applies to all Public Officials, as defined below. 55682.00001\34968988.1
SECTION 4. Definitions
Unless otherwise expressly provided herein, words and terms used in this Policy shall have the same meaning as that ascribed to such words and terms in the Political Reform Act of 1974 (Government Code section 81000 et seq., as the same may from time to time be amended) and the Fair Political Practices Commission (“FPPC”) Regulations (Title 2, California Code of Regulations, section 18110 et seq., as the same may from time to time be amended).
Term Definition
Public Official Every member, officer, employee or consultant of SDCP, as defined by Government Code section 82048 and
Regulation 18700.3. Such term shall include, without
limitation, any Board member, other appointed official, employee, or a consultant required to file an annual
Statement of Economic Interests (Form 700).
Immediate family The Public Official’s spouse and dependent children.
Ticket A “ticket” shall have the meaning set forth in Regulation 18946 and referenced in Regulation 18944.1, as each
may be amended. The regulations currently define “ticket” as anything that provides access, entry, or admission to a specific future event or function and for which similar tickets are sold to the public to view, listen to, or otherwise take advantage of the attraction or activity for which the ticket is sold and includes any benefits that the ticket provides.
Pass A “pass” shall have the meaning set forth in Regulation 18946 and referenced in Regulation 18944.1, as each
may be amended. The regulations currently define “pass” as a ticket that provides repeated access, entry, or
admission to a facility or series of events and for which similar passes are sold to the public.
SECTION 5. General Provisions
a. Those in violation of this Policy could be subject to disciplinary action up to and including dismissal and/or termination of contract, as described in further detail under the “Violations” section of this Policy.
b. All questions regarding the interpretation or applicability of this Policy should be directed to Human Resources for clarification.
55682.00001\34968988.1
c. The use of complimentary tickets or passes is a privilege extended by SDCP and not the right of any person to which the privilege may from time to time be extended.
d. Tickets or passes distributed to a Public Official pursuant to this Policy shall not be transferred to any other person, except to members of such Public Official’s immediate family solely for their personal use or no more than one guest solely for their attendance at the event.
e. No person who receives a ticket or pass pursuant to this Policy shall resell or receive compensation for the value of such ticket or pass. f. The Chief Executive Officer (“CEO”) shall have the authority, in their sole discretion, to establish further procedures for the distribution of tickets or passes in accordance with this Policy or in furtherance of any applicable rule or regulation of the FPPC. All requests for tickets or passes which fall within the scope of this Policy shall be made in accordance with the procedures established by the CEO.
The distribution of a ticket or pass by the CEO or their designee shall accomplish one or more of the public purposes set forth in Section 6 g. The CEO or their designee shall be the “agency head,” as that term is used in Section 18944.1, for purposes of implementing the provisions of this Policy under Section 18944.1 and completing and posting the Form 802. In such case, where the CEO desires to obtain a ticket or pass, the Board of Directors authorizes the CEO to exercise SDCP’s sole discretion in determining whether the CEO’s use or behest of tickets or passes is in accordance with the terms of this Policy. h. No ticket or pass gratuitously provided to SDCP by an outside source and distributed to, or at the behest of, a Public Official pursuant to this Policy shall be earmarked by the original source for use by a particular Public Official. i. A ticket or pass provided to a Public Official and one guest of the Public Official at which the Public Official performs a ceremonial role, as defined in Regulation 18942.3, on behalf of SDCP must be disclosed on Form 802 as set forth below.
Any additional effort by SDCP to either limit or expand permissible ceremonial roles will require that the revised Policy to be forwarded to the FPPC. j. The disproportionate use of tickets or passes distributed pursuant to this Policy by a member of the Board of Directors, the CEO, the heads of SDCP departments or divisions, or any appointed officers, is prohibited.
k. The value of any ticket or pass shall be the fair value of the ticket or pass. The “fair value” is the face value of the ticket or pass, or the price at which the ticket or pass would otherwise be offered for sale to the general public by the operator or host. Where the ticket or pass does not have a face value indicated, or has a face value that is not available to the general public, the fair value of the ticket or pass shall be the price at which the ticket or pass would otherwise be offered for sale 55682.00001\34968988.1
to the general public by the operator of the venue or host of the event who offers the ticket or pass for public sale. Where the price indicated on the ticket or pass does not reflect the actual cost for a ticket or pass in a luxury box or suite, the face value is determined by dividing the total cost of the box or suite by the number of tickets or passes available for that box or suite
l. If any paragraph, sentence, clause or phrase of this Policy is held invalid for any reason, said invalidity shall not affect the remaining portions of this Policy.
SECTION 6. Public Purposes
a. Subject to the provisions of this Policy, SDCP shall only provide a ticket and/or pass to a Public Official, or at the behest of a Public Official, to accomplish a public purpose. The following is a list of public purposes SDCP may accomplish through the distribution of tickets or passes. The list is illustrative rather than exhaustive:
1) Facilitating the performance of a ceremonial role or function by a Public Official on behalf of SDCP at an event.
2) Facilitating the attendance of a Public Official at an event where the job duties of the Public Official require their attendance. 3) Promotion of intergovernmental relations and/or cooperation and coordination of resources with other governmental agencies, including, but not limited to, attendance at an event with or by elected or appointed public officials from other jurisdictions, their staff members, and their guests. 4) Promotion of local and regional businesses, economic development and tourism activities within SDCP’s service area that serve or may potentially serve SDCP’s residents, including conventions and conferences. 5) Promotion of SDCP-run, sponsored or supported events, activities, or programs.
6) Promotion of community programs and resources available to residents within SDCP’s service area, including nonprofit organizations and youth programs.
7) Marketing promotions highlighting the achievements of local residents and businesses.
8) Promotion and marketing of private facilities available for use by residents within SDCP’s service area, including charitable and nonprofit facilities. 9) Promotion of public facilities available for use by residents within SDCP’s service area.
55682.00001\34968988.1
10) Promotion of SDCP growth and development, including outreach efforts, energy development, and job creation opportunities.
11) Promotion of specific SDCP community events provided by or sponsored by SDCP.
12) Promotion of any SDCP owned sites or facilities.
13) Exchange programs with foreign officials and dignitaries. 14) Promotion of SDCP recognition, visibility, and/or profile on a local, state, national or worldwide scale.
15) Promotion of SDCP services on a local, state, national or worldwide scale. 16) Promotion of open government and/or community relations by Public Official appearances, participation and/or availability at business or community events.
17) Sponsorship agreements involving private events where SDCP specifically seeks to enhance SDCP’s reputation both locally and regionally by serving as hosts or sponsors providing the necessary opportunities to meet and greet visitors, dignitaries, and residents.
18) All written contracts where SDCP, as a form of consideration, has required that a certain number of tickets or passes be made available for SDCP use. 19) Employment retention or recognition programs.
20) Special outreach programs for veterans, teachers, emergency services, medical personnel and other civil service occupations.
21) Encouraging or rewarding significant academic, athletic, or public service achievements by residents or businesses of SDCP’s service area. 22) Charitable 501(c)(3) fundraisers for the purpose of networking with other community and civic leaders.
23) Promotion of and participation in intergovernmental relations and activities. 24) Promoting, supporting and/or showing appreciation for programs or services rendered by charitable and non-profit organizations benefiting residents within SDCP’s service area.
25) Attracting or rewarding volunteer public service.
26) Recognizing or rewarding meritorious service by a SDCP employee. 27) Promoting enhanced SDCP employee performance or morale. 55682.00001\34968988.1
28) Recognizing contributions made to SDCP by former Board members or SDCP employees.
29) Use of a ticket or pass by the spouses of a Public Official in order to accompany them to any of the events listed above.
30) Any purpose similar to the above included in any SDCP contract. b. When a public purpose involves the oversight or inspection of facilities by a Public Official, the Public Official is required to provide a written inspection report and/or recommendation.
c. Subject to the provisions of this Policy, tickets or passes obtained by SDCP pursuant to the terms of a contract or purchased at fair market value may be distributed to Public Officials. Any distribution must accomplish a public purpose in accordance with Section 6(a), above.
d. Any ticket or pass obtained pursuant to Section 6(c) which is distributed to a Public Official, other than an elected official or member of the governing body of SDCP, for the Public Official’s personal use, to support general employee morale, retention, or to reward public service is also deemed to serve a public purpose. Such ticket or pass distribution shall be disclosed pursuant to Section 7, below. For purposes of this subsection, “personal use” is defined as use by the Public Official, their family, or no more than one guest.
e. Any Public Official, any member of the Public Official’s immediate family, or guest of the Public Official may return any unused ticket to SDCP for redistribution pursuant to this Policy.
f. The provisions of this Policy apply only to benefits the Public Official receives that are provided to all members of the public with the same class of ticket.
SECTION 7. Reporting and Disclosure
a. This Policy shall be posted on SDCP’s website in a prominent manner.
SDCP shall, within 30 days of adoption or amendment, send to the FPPC by email a website link that displays the Policy. It shall be the duty of the CEO or their designee to ensure SDCP’s compliance with Section 18944.1(d) pertaining to the reporting of the distribution of tickets by SDCP.
b. Except as provided in subsections (c) and (d) below, tickets or passes distributed by SDCP to any Public Official pursuant to this Policy must be recorded on Form 802 or, on such alternative form(s) as may from time to time be designated by the FPPC. This form must be maintained as a public record, and be subject to inspection and copying as required under Government Code section 81008(a). Within 45 days of distributing a ticket or pass, SDCP must post these forms on its website and email a website link to the FPPC that displays the form, and the form must contain the information required by Section 18944.1 (d).
55682.00001\34968988.1
c. Tickets or passes distributed by SDCP for which SDCP receives reimbursement from the Public Official within 30 days shall not be subject to this Policy or the disclosure provisions of Section 7(b), and shall not be treated as a gift to the Public Official.
d. Tickets or passes that a Public Official treats as income consistent with applicable federal and state income tax laws shall not be subject to this Policy or the disclosure provisions of Section 7(b), and shall not be treated as a gift to the Public Official.
e. For tickets or passes distributed to a department or other unit of SDCP, and not used by a member of the Board of Directors, the CEO, the head of an SDCP department or division, or an appointed officer, SDCP may report the name of the department or other unit of SDCP and the number of tickets or passes provided to the department or other unit in lieu of posting the name of the individual employee(s) as otherwise required.
55682.00001\34968995.1
RESOLUTION NO. 2202-07
A RESOLUTION OF THE BOARD OF DIRECTORS
OF SAN DIEGO COMMUNITY POWER
ADOPTING A TICKET AND PASS DISTRIBUTION POLICY
PURSUANT TO FAIR POLITICAL PRACTICES COMMISSION
REGULATION 18944.1
A. San Diego Community Power (“SDCP”) is a joint powers agency formed pursuant to the Joint Exercise of Powers Act, Cal. Gov. Code § 6500 et seq., California Public Utilities Code § 366.2, and a Joint Powers Agreement effective on October 1, 2019, as amended (“JPA Agreement”).
B. Pursuant to Government Code Section 6509 and Section 3.4 of the JPA Agreement, SDCP’s powers are subject to the restrictions upon the manner of exercising power possessed by the City of Encinitas, a general law city.
C. The Fair Political Practices Commission (“FPPC”) has adopted Regulation 18944.1 establishing rules by which tickets distributed by local government agencies to government officials will not constitute reportable gifts under the Political Reform Act (Gov. Code § 81000, et seq.). Regulation 18944.1 defines the circumstances under which the receipt of tickets and passes by a public official would need to disclosed by SDCP and the circumstances in which they would be distributed to public officials and not require disclosure for the purposes of the public official’s Statement of Economic Interests (“Form 700”).
D. Regulation 18944.1 requires that local government agencies adopt a written policy governing distribution of tickets to local government officials in order that receipt of tickets will not necessarily be treated as reportable gifts. Such rules and procedures apply to SDCP as a local public agency.
E. From time to time, SDCP may purchase or receive tickets or passes from third party sources, either public or private, and finds that the receipt of all such purchased, discounted, or free tickets and/or passes are public resources, and SDCP desires to distribute these public resources in a manner that furthers SDCP’s governmental and public purposes as reasonably described in the attached ticket and pass distribution policy.
F. The FPPC has clearly stated that it recognizes the discretion of the legislative or governing body of an agency to determine whether the distribution of tickets and/or passes serves a legitimate public purpose of SDCP, provided that the determination is consistent with applicable law.
G. In order to comply with Regulation 18944.1, SDCP desires to adopt the attached Ticket and Pass Distribution Policy to govern the distribution of tickets and passes by SDCP to its officials, officers, employees, and covered consultants. 55682.00001\34968995.1
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of San Diego Community Power as follows:
Section 1. The Board of Directors finds that the foregoing recitals are true and correct and are incorporated herein.
Section 2. The Ticket and Pass Distribution Policy attached hereto as Exhibit A is incorporated as though fully set forth herein, and is hereby adopted as the official Ticket and Pass Distribution Policy of SDCP. SDCP shall distribute tickets and passes to designated SDCP officials in accordance with the requirements and procedures set forth in the Ticket and Pass Distribution Policy and with applicable law.
Section 3. The Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) designated by the CEO are authorized to perform any and all acts necessary to give effect to and comply with the terms and intent of the Ticket and Pass Distribution Policy. The CEO and CFO shall be responsible for the administration of the distribution of tickets and passes pursuant to the Ticket and Pass Distribution Policy.
Section 4. If any provision of this resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the resolution which can be given effect without the invalid provision or application, and to this end the provisions of this resolution are severable. The Board of Directors hereby declares that it would have adopted this resolution irrespective of the invalidity of any particular portion thereof.
Section 5. This resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED at a meeting of the Board of Directors of San Diego Community Power held on May 26, 2022.
_____________________________
Chair, Board of Directors
San Diego Community Power
ATTEST:
_______________________________
Secretary, Board of Directors
San Diego Community Power
55682.00001\34968995.1
EXHIBIT A
TICKET AND PASS DISTRIBUTION POLICY
1 SAN DIEGO COMMUNITY POWER
Staff Report – Item 7
--------------------------------------------------------------------------------------------------------------------- To: San Diego Community Power Board of Directors
From: Eric Washington, Chief Financial Officer
Via: Karin Burns, Chief Executive Officer
Subject: Presentation of the FY 2022-23 Operating Budget Date: May 26, 2022
---------------------------------------------------------------------------------------------------------------------
RECOMMENDATION
Receive and file presentation of the FY 2022-23 Operating Budget.
BACKGROUND
On October 1, 2019, the Founding Members of San Diego Community Power (SDCP) adopted the Joint Powers Agreement (JPA) which was amended and restated on December 16, 2021. Section 4.6.2 of the JPA specifies that the SDCP Board of Directors (Board) shall adopt an annual budget with a fiscal year that runs from July 1 to June 30.
Section 7.3.1 of the JPA specifies that that all subsequent budgets of SDCP shall be prepared and approved by the Board in accordance with its fiscal management policies that should include a deadline for approval.
Table 1 illustrates the draft FY 2022-23 budget in comparison to SDCP’s budgets from prior years.
Table 1. SDCP Budgets
ANALYSIS AND DISCUSSION
The draft FY 2022-23 budget includes net operating revenue of $689,211,188 and total expenses of $679,977,395, resulting in net income of $9,233,792. 2 The FY 2022-23 budget includes the key assumptions outlined below. A more detailed breakdown and explanation of revenues and expenses are presented in Attachment A.
Operating Revenue
Allow for revenues from sales of electricity to customers for Phase 1, 2, 3 and the beginning of Phase 4. Assumptions include an overall 5% opt-out rate.
Cost of energy includes all the various services purchased from the power market through our suppliers to supply energy to SDCP’s customers.
Operating Expenses
SDCP’s operating expenses fall into four categories: personnel costs, professional services and consultants, marketing and outreach, and general and administration.
Expense assumptions include the following:
• Personnel include salaries, payroll taxes, benefits, and excused absence and paid time off for staff. The recruitment strategy includes the addition of approximately 14 new staff members and two interns during the FY 2022-23 budget cycle. • Professional Services and Consultants include SDG&E fees, data management fees from Calpine, technical support (for rate setting, load analysis, energy scheduling, etc.), legal/regulatory services and other general contracts related to IT services, audits and accounting services. Funding is also included for a program consultant to guide future program investments in the community.
• Marketing and Outreach includes expenses for mandatory enrollment notices, communication consultants, mailers, printing, sponsorships, and partnerships to inform the community of SDCP.
• General and Administration budget covers the cost of office space, equipment, membership dues, and other general operational costs.
• Programs includes funding to support initial pilot programs after the SDCP Community Power Plan is launched and other community-based program efforts.
Non-Operating Expenses
SDCP’s budget also includes non-operating expenses related to interest and related expenses used to finance its operations. These costs are comprised of repayment of loan principle, associated interest costs as well as potential renewal fees on debt or letters of credit.
Net Income
The proposed FY 2022-23 budget results in a net position of $9,233,792. 3 The following table illustrates SDCP’s proposed FY 2022-23 operating budget compared to its amended budget for FY 2021-22.
Table 2. FY 2022-23 Proposed Budget compared to FY 2021-22 Amended Budget Community Choice Aggregator (CCA) Comparison
Upon completion of Phase 4 in FY23, San Diego Community Power’s budget will be similar in proportion when compared to other similar CCAs in California.
FY 2022-23 Budget Development Schedule
The current schedule for development of the draft FY 2022-23 budget is shown in Table 4 below.
Table 4. Current Budget Development Schedule
COMMITTEE REVIEW
The final draft budget is set for review at the FRMC on June 2, 2022 before it is advanced to the Board for approval on June 23, 2022.
Item FY 23 Proposed
Budget, $M
FY 22 Amended,
$M
Gross Revenue 696.2 380.8
Less Uncollectible Accounts (7.0) (2.7)
Net Revenue 689.2 378.1
Cost of Energy 641.9 329.5
Non-Energy Costs 31.7 11.7
Subtotal Operating Expense 673.6 341.1
Debt Service 6.3 0.7
Total Expense 680.0 341.9
Net Position 9.2 36.1
4 FISCAL IMPACT
The proposed FY 2022-23 budget is expected to result in a net position of $9,233,792.
ATTACHMENTS
Attachment A: FY2022-23 Operating Budget
FISCAL YEAR 2022-23 BUDGET
for the period
July 1, 2022 through June 30, 2023
2 3
OPERATING REVENUE
SDCP’s sole source of revenue is from the retail sale of electricity to its customers.
Revenue reflects a full fiscal cycle of retail sales to our commercial and industrial customer base and a portion of retails sales to our residential customer base. Additional revenue assumptions include:
• The Enrollment for Phase 4 for the County of San Diego and National City beginning in April 2023.
• The substantial completion of Enrollment Phases 1,2, and 3. • Uncollectible accounts are assumed to be at 1% of total gross revenue. • The overall opt-out rate is assumed to be 5%.
• Participation rate in Power100 is assumed at 7% of revenues.
COST OF ENERGY
Cost of energy includes all the various services purchased from the power market through our suppliers. This includes purchased energy, capacity, CAISO fees and other miscellaneous power market expenses. Energy costs assume hedging for FY 2022-23 as of May 2022 and forward electricity prices for the remaining, unhedged energy. This category represents the large majority of SDCP expenses.
OPERATING EXPENSES
SDCP’s operating expenses fall into four categories: personnel costs, professional services and consultants, marketing and outreach, and general and administration.
SDCP’s budget also includes non-operating expenses related to interest and related expenses used to finance its operations. Additional expense assumptions follow below. • Personnel include salaries, payroll taxes, benefits, and excused absence and paid time off for staff. The recruitment strategy includes the addition of approximately 14 new staff members and two interns during the FY 2022-23 budget cycle to support the continued growth of SDCP. Most notably, the hiring strategy assumes:
o Power Services expands to eight staff to support the continued procurement of energy, SDCP’s largest expense.
o Programs builds up to seven staff to position SDCP to receive public feedback and establish community programs.
• Professional Services and Consultants
o Data Management includes a broad scope of services that includes all “back office” billing data validation, bill coordination with SDG&E, call center services and billing technical support, customer enrollment database management, move-in/move-out services, customer research for enrollment support, and many support functions related to data reporting.
4 o SDG&E Fees include various service fees paid to SDG&E. This includes mass enrollment fees related to Phase 3 and Phase 4.The fees also cover SDG&E’s costs associated with meter reading, additional data processing and bill coordination as mandated and regulated by the California Public Utilities Commission (CPUC). Further, there are numerous small fees associated with data requests.
o Technical Support includes consultants to assist with rate setting, policies, joint rate comparisons with the IOU, load analysis, new member analyses and a scheduling coordinator. After electric power is scheduled for delivery to customers and ultimately consumed by those customers, the actual electric consumption must be trued up against the forecasted and scheduled energy.
This true-up occurs through the settlement process. Settlements also entail addressing a number of other market and regulatory requirements. o Legal/Regulatory includes legal counsel to assist with the complex aspects of the regulatory, compliance, power supply contract negotiations as well as its general legal needs. This line item also includes the retention of a lobbyist to support SDCP’s legislative and regulatory efforts.
o Other Services include contracts for IT services, audits (data and financial audits), accounting services, and human resource services. As SDCP matures we will continue to monitor these services to determine whether it is more cost effective or efficient to bring this work in-house.
o Programs Consultant to develop a detailed analysis of housing and demographics to inform future program investment. This will help position targeted investments in future programs for SDCP.
• Marketing and Outreach
o Printing includes all statutory pre- and post-enrollment notification printing, postage and mailing requirements as part of our Phase 3 and Phase 4 mass enrollment efforts. SDCP also performs additional outreach in the form of mailers.
o Sponsorships and Local Memberships includes outreach to educate the community of the benefits of community choice. This comes in the form of media advertising, sponsorships of community events, community organizations and partnerships.
o Communications Consultants continues to be an important focus of SDCP in ensuring the community is informed about SDCP and that we continue to build professional-level name recognition, trust, and education. This also covers design of all required notifications sent out to customers, informing them of their enrollment in SDCP, opt-out procedures, rate comparisons, as well as other notices or educational or marketing information.
5 • General and Administration costs include leasing office space, industry fees or memberships (e.g., bank fees, CalCCA dues), equipment and software, as well as other general operational costs including Board and Committee expenses, Board stipends, staff travel or professional development, logo gear, and team building. • Programs includes funding to support initial pilot programs after the SDCP Community Power Plan is complete in calendar year 2023, grants to community organizations, investments that generate equitable energy-related benefits, education campaigns, opportunities for increased collaboration with member agencies and funding for a potential new CPUC energy-efficiency program.
NON-OPERATING EXPENSES
Interest and related expenses including the repayment of loan principle, associated interest costs as well as potential renewal fees on debt or letters of credit.
SAN DIEGO COMMUNITY POWER
Staff Report – Item 8
--------------------------------------------------------------------------------------------------------------------- To: San Diego Community Power Board of Directors
From: Laura Fernandez, Director of Regulatory and Legislative Affairs Via: Karin Burns, Chief Executive Officer
Subject: Discussion on 2022 Legislative Platform and AB 2838; Update on Legislative and Regulatory Items
Date: May 26, 2022
--------------------------------------------------------------------------------------------------------------------
RECOMMENDATIONS
Review and discuss SDCP 2022 Legislative Platform; Discuss SDCP position on AB 2838; Receive and discuss update on pending legislation and regulatory items
BACKGROUND
Staff will provide regular updates to the Board of Directors regarding SDCP’s regulatory and legislative engagement.
ANALYSIS AND DISCUSSION
A) Review Legislative Platform
At the March 24, 2022 SDCP Board Meeting, the Board of Directors approved SDCP’s Legislative Policy Platform (Platform) as part of the Consent Agenda. The March staff report as well as the Platform are attached to this staff report. Staff will provide an overview of the Platform as well as the Delegation of Authority to the CEO for Regulatory and Legislative Matters. The Delegation of Authority is also attached to this staff report.
B) Assembly Bill 2838 Update
As discussed during the last board meeting, AB 2838 is legislation that that would authorize the CPUC to allow termination of green tariff programs, such as SDG&E’s EcoChoice program. AB 2838 would also allow the CPUC to consider whether outstanding program costs may be recovered from non-participating ratepayers.
The CalCCA Board of Directors voted to take an “Oppose Unless Amended” position on AB 2838 and CalCCA will take the lead on advocacy in the Senate. SDCP previously submitted a letter in opposition to AB 2838. This letter is also available via SDCP’s Legislative Tracker, which can be accessed through the following link:
https://sdcommunitypower.org/legislative-priorities/ .
AB 2838 passed the Assembly Floor and was ordered to the Senate on May 5, 2022.
C) Senate Bill 881 Update
SDCP previously took an “Oppose, Unless Amended” position on SB 881 (see letter).
While well-meaning, SB 881 would significantly diminish SDCP’s ability to determine the best way to reach SDCP’s greenhouse-gas reduction goals, which in turn infringes on the right to local clean energy self-determination. SB 881 could allow the CPUC to tell CCAs like SDCP what to buy and when, with no regard for the goals SDCP’s Board has set to govern SDCP's power purchases. SB 881 has been moved to the suspense file as of May 16, 2022.
D) Engagement on the Federal Level
On April 22, 2022, SDCP sent a joint letter along with Central Coast Community Energy, Clean Power Alliance, East Bay Community Energy (EBCE), MCE, Sonoma Clean Power, and Silicon Valley Clean Energy to our congressional delegation offering comments on clean energy investments in future investment packages following the Infrastructure Investment and Jobs Act in 2021. The topics addressed in the letter include: Clean Electricity Tax Credits, Qualified Infrastructure Bonds for State and Local Governments; and Investments in Electric Vehicles and Building Decarbonization. This letter is attached to this staff report.
As SDCP grows its brand and presence in the region, SDCP will continue to engage with elected officials in order to educate and raise awareness of the various programs and ideas SDCP may offer for the purpose of pursuing deep decarbonization of the region.
E) Completion of Government Affairs Services Request for Proposals On March 11, 2022, SDCP issued a Request for Proposals (RFP) for Government Affairs Services. SDCP received responses from multiple proposers by the April 4, 2022 deadline. SDCP reviewed the responses and conducted interviews in accordance with the schedule outlined in the RFP. Staff is pleased to report that SDCP has contracted with Full Moon Strategies for Government Affairs services. This service will significantly increase our capacity to represent the interests of SDCP with legislators and regulatory agencies.
F) Power Charge Indifference Adjustment – Voluntary Allocation, Market Offer (VAMO)
In 2021 with Decision (D.) 21-05-030, the CPUC authorized new processes for optimization of the IOUs’ Power Charge Indifference Adjustment (PCIA) portfolios with the goal of reducing uneconomic resources and/or resources that are not necessary to meet necessary to meet bundled customers’ needs and compliance requirements.
Specifically, D.21-05-030 authorized new Voluntary Allocation and Market Offer (VAMO) processes for Renewables Portfolio Standard (RPS) contracts subject to the PCIA. • Voluntary Allocations shall comprise a “slice” of an IOU’s entire PCIA-eligible RPS portfolio, in which PCIA-eligible load-serving entities (LSEs) within the respective IOU territory may elect to take a short-term allocation, a long-term allocation (paying a fixed market price benchmark price), or may choose to decline all or a portion of their allocation.
• All PCIA-eligible RPS energy remaining after a Voluntary Allocation will be offered for sale by the IOUs through a Market Offer process.
D. 21-05-030 concluded that the CPUC should review, approve, and monitor the RPS VAMO activities through the CPUC’s RPS proceeding and compliance processes, therefore issues regarding implementation and schedule still need to be resolved. SDCP is working with CalCCA to address remaining issues within the VAMO framework.
On April 18, 2022, the CPUC issued a ruling seeking comment on the Portfolio Content Category (PCC) classification of resources following the Voluntary Allocation and the VAMO timeline. CalCCA filed responsive comments. On May 2, the IOUs filed a joint Market Offer process proposal.
As currently proposed, both Voluntary Allocations and Market Offer products would be a “slice” of the IOUs’ entire RPS-eligible portfolio, therefore SDCP would not have discretion over the resource mix. For Voluntary Allocations, this framework was considered a tradeoff to provide LSEs the option to receive an allocation from the IOUs’ PCIA-eligible RPS energy portfolios without allowing them to select the most desirable resources from the IOU portfolios. SDCP will continue to monitor and engage in the details of VAMO implementation and raise concerns that will impact SDCP’s decisions to participate in VAMO.
G) Net Energy Metering – Reopened Record to Take Comment on Limited Basis On May 9, the CPUC officially re-opened the Net Energy Metering 3.0 proceeding (Rulemaking 20-08-020), via a ruling which allows parties to provide comment on certain topics within the proceeding. As mentioned in the February Update on Regulatory and Legislative Affairs staff report (page 39 of the Agenda Packet), this comes after the CPUC’s Proposed Decision on NEM 3.0 was officially put on hold via a procedural email sent on February 3. At that point, CPUC President Alice Reynolds had “requested additional time to analyze the record and consider revisions to the proposed decision based on party comments.”
The recent ruling invites parties to respond to specific questions regarding: (1) The Glide Path Approach; (2) Non-Bypassable Charges on Gross Consumption; and (3) Community Distributed Energy Resources.
SDCP has been active since the start of the NEM 3.0 proceeding, with the most recent action on January 7, when SDCP filed joint comments with East Bay Community Energy (EBCE). These comments addressed several issues which were described in the February 2022 Update on Regulatory and Legislative Affairs provided to the Board. Staff is currently analyzing the recent ruling and working with EBCE and other CCAs to draft comments that align with SDCP’s priority of ensuring sustainable growth of the solar industry. Opening comments are due June 10, and reply comments are due June 24.
H) Application For Review on Disadvantaged Communities Green-Tariff and Community Solar Green Tariff Programs, as well as Green Tariff Shared Renewables
Decision (D.) 18-06-027, issued June 22, 2018, adopted alternatives to promote solar distributed generation in disadvantaged communities via the Disadvantaged Communities Green Tariff (DAC-GT) and Community Solar Green Tariff (CSGT) programs. Ordering Paragraph 16 of D.18-06-027 required that the Investor-Owned Utilities (IOUs) “each file an application for review (AFR) of the DAC-GT and CSGT programs no later than January 1, 2021, and that the resulting proceeding would include a review of both the programs’ costs and benefits, and may result in revisions to the tariff, if appropriate.”
Since then, the IOUs were granted two extensions. One on December 2020 for one year until January 1, 2022, and another in October 2021 which granted the IOU’s request for an extension to file their DAC-GT/CSGT Applications until the 60th day following issuance and service of the 2021 DAC-GT and CSGT Evaluation Report (“Report”). The Report was made available March 31, 2022, meaning that the applications for review will be filed May 31, 2022.
As noted on page 81 of the Agenda Packet for the October 28, 2021 Board meeting, SDCP sought megawatt allocation under these two programs, which would provide low-income customers that qualify for the CARE discount to receive an additional 20% bill discount and 100% renewable energy from a local generating facility. While SDCP plans to submit an implementation advice letter later this Fall, SDCP will engage in the upcoming AFR process to ensure that SDCP ratepayers’ needs are met and that the program is successful given our region’s unique characteristics.
Lastly, the CPUC also directed the IOUs to include implementation details for their Green Tariff Shared Renewables Programs in these AFRs. SDCP will monitor the comments and engage as needed.
COMMITTEE REVIEW
N/A
FISCAL IMPACT
N/A
ATTACHMENTS
Attachment A: Legislative Policy Platform Staff Report (March 24, 2022) Attachment B: Final Legislative Policy Platform (Adopted March 24, 2022) Attachment C: Delegation of Authority to CEO for Regulatory and Legislative Matters Attachment D: Joint CCA Comments on Clean Energy Investments in Future Federal Investment Packages
SAN DIEGO COMMUNITY POWER
Staff Report – Item 8a
--------------------------------------------------------------------------------------------------------------------- To: San Diego Community Power Board of Directors
From: Laura Fernandez, Director of Regulatory and Legislative Affairs Via: Cody Hooven, Chief Operating Officer
Subject: Adopt Legislative Policy Platform
Date: March 24, 2022
---------------------------------------------------------------------------------------------------------------------
RECOMMENDATIONS
Adopt Legislative Policy Platform
BACKGROUND
SDCP’s Legislative Policy Platform (Platform) serves as a guide to the SDCP Board of Directors and SDCP staff in their advocacy efforts and engagement on policy matters of interest to SDCP. The Platform allows both Board members and staff to pursue actions at the local, regional, state and federal legislative levels in a consistent manner and with the understanding that they are pursuing actions in the best interest of the organization and its mission, its member agencies, and its customers. The Platform enables the organization to move swiftly to respond to issues before Legislature and Executive Branch agencies including California Public Utilities Commission (CPUC), the California Energy Commission (CEC), California Independent System Operator (CAISO), and the California Air Resources Board (CARB) so that SDCP’s views can be heard on important matters in a timely fashion. This Platform is applicable to statewide referenda, grant funding opportunities, and local ballot initiatives. The Platform provides guidance to the Chief Executive Officer on support or oppose positions that should be taken on legislative matters identified by the SDCP Director of Regulatory and Legislative Affairs and the California Community Choice Association (CalCCA) Board of Directors.
ANALYSIS AND DISCUSSION
SDCP has three major legislative priorities:
1. Accelerating Deep Decarbonization, including electrification of buildings and the transportation sector;
2. Promoting Local Development, and
3. Stabilizing Community Choice.
SDCP support of legislation will be contingent upon that legislation adhering to these legislative priorities as well as SDCP’s organizational goals and priorities. Moreover, SDCP supports any and all policies that will preserve or enhance the ability of SDCP to promote these priorities at the local level.
The entire legislative policy platform is attached to this staff report.
COMMITTEE REVIEW
This item was presented to the Community Advisory Committee on March 11, 2022.
FISCAL IMPACT
N/A
ATTACHMENTS
Attachment A: San Diego Community Power Legislative Platform San Diego Community Power Legislative Platform
Overview and Purpose
San Diego Community Power’s (SDCP) Legislative Policy Platform (Platform) serves as a guide to the SDCP Board of Directors and SDCP staff in their advocacy efforts and engagement on policy matters of interest to SDCP. The Platform allows both Board members and staff to pursue actions at the local, regional, state and federal legislative levels in a consistent manner and with the understanding that they are pursuing actions in the best interest of the organization and its mission, its member agencies, and its customers. The Platform enables the organization to move swiftly to respond to issues before Legislature and Executive Branch agencies including California Public Utilities Commission (CPUC), the California Energy Commission (CEC), California Independent System Operator (CAISO), and the California Air Resources Board (CARB) so that SDCP’s views can be heard on important matters in a timely fashion. This Platform is applicable to statewide referenda, grant funding opportunities, and local ballot initiatives. The Platform provides guidance to the Chief Executive Officer on support or oppose positions that should be taken on legislative matters identified by the SDCP Director of Regulatory and Legislative Affairs and the California Community Choice Association (CalCCA) Board of Directors.
The Platform outlines the legislative priorities and stances of SDCP with the intent to inform customers, representatives, and policymakers on the myriad of public policies that intersect with SDCP’s priorities, programs, and services.
SDCP has three major legislative priorities:
1. Accelerating Deep Decarbonization, including electrification of buildings and the transportation sector;
2. Promoting Local Development, and
3. Stabilizing Community Choice.
SDCP support of legislation will be contingent upon that legislation adhering to these legislative priorities as well as SDCP’s organizational goals and priorities. Moreover, SDCP supports any and all policies that will preserve or enhance the ability of SDCP to promote these priorities at the local level.
Any questions regarding this Platform can be directed to Laura Fernandez, Director of Regulatory and Legislative Affairs, at [email protected].
General Legislative Principles
SDCP has three general legislative principles. These priorities serve as the foundation for all actions SDCP will take, including the lobbying for policies that promote those same guiding priorities. Public policy encompasses a myriad of subject and topic areas. However, as these policies intersect at the local level, they have the ability to impact SDCP revenues, programs, and/or administrative discretion and control. SDCP will support policies that accelerate deep decarbonatization, promote local development, stabilize community choice, or any combination thereof. If a given policy does not meet these criteria, SDCP will oppose, support with amendments, or in some cases take no stance on that policy or legislation. The General Legislative Principles for SDCP are:
Accelerating Deep Decarbonization
• Support the creation or expansion of federal, state, and local policies, programs and funding that enable SDCP to provide 100% renewable energy by 2035 or sooner to customers within its service territory as well as contribute to the State’s efforts to reduce greenhouse gas emissions, including through building electrification and transportation electrification
• Oppose any legislation, policies, programs, referenda, unfunded mandates and budgets that would have an adverse impact on SDCP’s ability to advance decarbonization through its procurement, programs, projects, and services.
Promoting Local Development
• Support any legislation, policy, funding, referenda, and budgets that enhance community choice energy providers’ ability to invest in local clean energy, distributed energy resources, grid resiliency, zero-emission transportation, all while promoting equity in the communities that it serves.
• Oppose any legislation, policy, funding, referenda, and budgets that limit or undermine SDCP’s ability to invest in local clean energy, distributed energy resources, zero-emission transportation, all while promoting equity in the communities that it serves.
Stabilizing Community Choice
• Support any legislation, policies, funding, referenda, and budgets that maintain or improve the stability of community choice energy providers by ensuring regulatory structure is equitable and enables Community Choice Aggregators (CCAs) to meet their mission and goals. Maintaining local decision-making authority, including rate-setting authority and procurement of energy, is a key pillar for this stability. • Oppose any legislation, policies, funding, referenda, and budgets that undermine or circumvent CCAs and impede the ability of SDCP to achieve its mission and goals or its value proposition.
The list of policy positions below is by no means exhaustive. In addition to the general legislative priorities, SDCP takes the following more specific public policy positions:
I. Governance and Authority
a. Oppose legislation that limits the local decision-making authority for CCAs, including rate-setting authority and procurement of energy and capacity to serve their customers.
b. Oppose legislation that limits SDCP’s ability to effectively serve its customers. c. Support legislation that makes it easier for other cities and counties that are not served by a publicly owned utility to form a CCA, become members of SDCP or other CCAs, and oppose legislation that restricts that ability.
II. Deep Decarbonization
a. Advocate for and support legislative efforts to accelerate deep decarbonization of the energy sector, transportation and the built environment. b. Advocate for and support legislative efforts to support and expand access to transportation and building electrification.
c. Advocate for and support efforts to ensure flexibility in program design so that local data and local needs directly inform program offerings. d. Support state funding for electric vehicle infrastructure grant programs. e. Advocate for and support legislative efforts to provide incentives to support communities of concern achieving deep decarbonization.
III. Environmental Justice
a. Support legislation that supports the ability of communities of concern in the SDCP service area to have affordable, reliable and clean energy. b. Support legislation that strengthens the resilience of vulnerable communities to the impacts of climate change.
c. Support legislation that enables all communities, including emerging and historically marginalized communities in California, to participate in deep decarbonization efforts.
d. Support legislation and initiatives that would reduce local air pollution, reduce other negative local impacts associated with energy production, and boost adoption of distributed energy resources within communities of concern. e. Oppose legislation and initiatives that have the potential to disproportionately and negatively impact communities of concern.
IV. Environmental Sustainability
a. Support legislation and initiatives that increase funding for the creation of sustainable and stable energy supply infrastructure.
b. Support legislation and initiatives that encourage the conservation of energy resources as well as the development of dynamic load-shifting capabilities. c. Support legislation and funding for renewable and advanced energy technology that increase efficient consumption.
d. Support legislation and funding for pilot energy and resource efficiency programs.
e. Support legislation and initiatives with the goal of reducing and mitigating the effects of climate change and building local resiliency.
V. Investor-Owned Utility (IOU) Charges and Exit Fees - Power Charge Indifference Adjustment (PCIA)
a. Support efforts that seek to eliminate exit fees including the PCIA or wind down exit fees within a reasonable time frame.
b. Support efforts to minimize the cost of the PCIA generally and minimize its impact on SDCP’s rates.
c. Support CalCCA efforts to increase the transparency of IOU electricity contracts that provide the basis for PCIA charges.
d. Support legislation that would bring stability to the PCIA and/or provide new mechanisms for CCAs to securitize PCIA charges.
e. Support legislation that advances ratepayer equity.
f. Oppose legislation that would increase or expand exit fees on CCA customers.
VI. Resource Adequacy
a. Support legislation by CalCCA to implement the recommendations from Working Group 3 via statute.
b. Oppose legislation that would supplant CCAs’ procurement authority for Resource Adequacy.
c. Support reform of the CPUC Resource Adequacy program to allow for stability in the resource adequacy value of existing resources.
d. Advocate for and support efforts to remove barriers to demand response, microgrids and behind the meter resources to provide Resource Adequacy.
VII. Nonbypassable Charges
a. Oppose legislation that restricts or limits SDCP’s ability to procure its own energy products to meet state policy goals.
b. Support legislation that promotes a level playing field between CCAs and other market participants.
c. Support legislation that enhances the flexibility of CCA programs to support statewide procurement policy and develop and expand programs, local options, and rate design to support SDCP’s community and customers.
VIII. Community Resilience
a. Advocate for and support funding for programs implemented by CCAs and their member jurisdictions to increase community resilience to wildfires, public safety power shutoff (PSPS) events and other potential service disruptions. b. Support legislation that reduces barriers to microgrid development by CCAs. c. Oppose legislation that would enable IOUs to be the only developer of microgrids.
d. Support legislation that increases development of community-level resources and distributed energy resources that increase resilience and reduce the need for new transmission and distribution infrastructure.
IX. Local Economic Development
a. Support legislation that is consistent with SDCP’s commitment to an inclusive and sustainable workforce.
b. Support legislation that enhances opportunities for CCAs to promote local economic development through locally designed programs that meet the unique needs of their member agencies, communities, and customers. c. Support efforts to enhance development of local and regional sources of renewable energy.
d. Support legislation that enables CCAs to collaborate with their member jurisdictions on local energy resources and projects to advance environmental objectives.
e. Advocate for and support efforts to direct federal economic stimulus/recovery funding to CCAs to deliver local energy resources and projects, as appropriate.
X. California Energy Market Structure
a. Oppose legislation that expands direct access or the ability or economic incentives for electric service providers to selectively recruit CCA or IOU customers.
b. Support legislation that would create renewable content and environmental standards for electric service providers to match the products offered by CCAs. c. Support legislation that changes California’s market structures towards innovative models that reduce costs of energy service and support the expansion of carbon-free resources.
d. Support legislation that advocates for equitable and timely data access/sharing between the IOUs, CCAs and other LSEs to support accurate and timely load forecasts, which aid in overall statewide grid reliability and resiliency efforts.
XI. Finance
a. Support legislation that enhances the financial standing of CCAs and their ability to receive a positive credit rating.
b. Oppose legislation that reduces or removes the tax-exempt status of municipal bonds.
c. Oppose any legislation that would divert CCA revenues to the State or other governmental entities.
XII. Educational, Neighborhood and Social Services
a. Support legislation that aids or helps to fund SDCP to provide energy support services, education, and opportunities for reducing energy costs to people who are low-income, seniors, veterans, and/or people with disabilities. b. Support legislation and initiatives that increase funding for energy efficiency, demand response, solar plus storage, and transportation electrification programs, and energy literacy services.
EXHIBIT “A”
SAN DIEGO COMMUNITY POWER
Subject: Delegation of authority to Chief Executive Officer to take a position and/or action regarding regulatory and legislative matters of import to SDCP.
Purpose: On occasion, the Chief Executive Officer is approached with a time-sensitive request to take a position or action on a regulatory, legislative, or other governmental matter related to San Diego Community Power’s mission and operations. This policy is intended to delegate authority to the Chief Executive Officer and/or relevant designee(s) to take necessary regulatory or legislative action consistent with SDCP’s mission and goals when certain conditions are met.
Policy: San Diego Community Power hereby delegates authority to the Chief Executive Officer or relevant designee to sign regulatory or legislative documents or related materials on behalf of SDCP, when all of the following conditions are met:
1. The regulatory, legislative, or other proposed action is directly related to and consistent with or will adversely impact SDCP’s mission and operations.
2. Because of time constraints, bringing the matter to the Board of Directors at its next regularly scheduled meeting is not practical.
3. Calling a special meeting of the Board to address the matter is neither practical nor necessary under the circumstances.
4. The CEO has investigated and is aware of the positions, if any, of (1) other California CCAs and its trade association Cal-CCA; (2) state and federal legislators representing the San Diego region its cities, and (3) SDCP’s member agencies.
5. The CEO has conferred with the Chair of the Board (or Vice Chair in the Chair’s absence) and both the CEO and the Chair/Vice Chair agree that: (a) the position that the CEO intends to take is consistent with the mission of SDCP; (b) bringing the matter to the Board at its next scheduled meeting is not practical or appropriate under the circumstances; and (c) taking the position without a vote of the Board is appropriate under the circumstances.
6. The CEO will report positions taken pursuant to this policy at the next regularly scheduled Board of Directors meeting as part of the CEO’s Report or the Regulatory/Legislative Report.
POLICY #______
Delegation of Authority to CEO for
Regulatory and Legislative Matters
1 815 E Street, Suite 12716
San Diego, CA 92112
sdcommunitypower.org
April 22, 2022
The Honorable Mike Levin
United States Congressmember
1030 Longworth House Office Building
Washington, DC 20515-0549
The Honorable Scott Peters
United States Congressmember
1201 Longworth Office Building
Washington, DC 20515-0552
The Honorable Juan Vargas
United States Congressmember
2244 Rayburn House Office Building
Washington, DC 20515-0551
The Honorable Sara Jacobs
United States Congressmember
1232 Longworth House Office Building
Washington, DC 20515-0553
Re: Comments on Clean Energy Investments in Future Federal Investment Packages
Dear Congressmembers Levin, Peters, Vargas, and Jacobs:
Thank you for your leadership in passing the Infrastructure Investment and Jobs Act in 2021. The Infrastructure Investment and Jobs Act is a critical down payment on climate change mitigation and resilience, and we were excited to see the significant investments in clean energy technologies, home weatherization, and EV infrastructure. Additional, focused investments are still essential given the scale of the challenge. As you discuss future federal packages, we wanted to offer comments for your consideration on behalf of Central Coast Community Energy, Clean Power Alliance, East Bay Community Energy, MCE, San Diego Community Power, Sonoma Clean Power, and Silicon Valley Clean Energy.
Clean Electricity Tax Credits
In order to reach the Administration’s national goal of 100% carbon-free electricity by 2035, it is critical to pass a comprehensive package of long-term, flexible, full-value tax credits for new clean electricity generating capacity. Long-term extensions to tax credits like the Investment Tax Credit (ITC) and Production Tax Credit (PTC) provide certainty to developers and investors, and they give supply chains time to scale up to meet increasing demand. Additionally, Investment Tax Credits for stand-alone storage technology is critical to our ability to store renewable energy and get to 24/7 clean energy. Legislation such as S. 1298 (Wyden), H.R. 848 (Thompson), and H.R. 1684 (Doyle)/S. 627 (Martin) would help provide tax credit support to develop and strengthen this technology.
2 Qualified Infrastructure Bonds for State and Local Governments Our agencies support qualified infrastructure bonds that spur clean energy investments and technology. For example, American Infrastructure Bonds (AIBs) would be permanent ways for state and local governments to finance projects for which tax-exempt financing would otherwise be available. AIBs present an important opportunity to lower the cost of renewable electricity for millions of California consumers through prepayment transactions. Prepayment transactions allow tax-exempt electricity providers the ability to pay up-front for energy from solar, wind and other renewable resources and save 10% - 15% on energy costs. By lowering the cost of existing renewable energy, AIBs will free up resources to invest in new projects. AIBs would also reduce the cost of future projects, accelerating investment in the buildout of clean energy infrastructure, which will also create much-needed jobs. Currently, market conditions do not support the use of prepayment transactions using tax-exempt debt.
Taxable AIBs would immediately make prepayment transactions possible.
Investments in Electric Vehicles and Building Decarbonization According to the United States Environmental Protection Agency, in 2019 the transportation sector represented 29 percent of overall greenhouse gas emissions, and commercial/residential buildings represented 13 percent of overall emissions.1 The scale of the challenge in these two sectors argues for the need for additional robust federal investment. The recent increase in gasoline prices is making more urgent the need to transition to electric vehicles. For lower income families especially, the upfront cost of electric vehicles remains a significant barrier. We support electric vehicle purchase incentives at the point of sale, including tax credits for light-duty battery electric vehicles and zero-emission commercial vehicles, to immediately bring down the upfront cost of the vehicle.
On building decarbonization efforts, any new federal funds should concentrate on retrofitting existing homes. We support the expansion of existing home energy and efficiency tax credits, as well as new consumer rebate programs for the purchase and installation of devices that enhance home electrification including heat pump water heaters and induction cooktops. In California, the Governor is proposing funds for direct installations of building decarbonization projects. Complementary federal programs to expand the reach of this funding is critical to scale these efforts.
Thank you for considering our comments. We look forward to continuing to work closely with you as conversations in DC progress.
1 https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions 3 Sincerely,
Tom Habashi
CEO
Central Coast Community Energy
Ted Bardacke
Executive Director
Clean Power Alliance of Southern
California
Nick Chaset
CEO
East Bay Community Energy
Dawn Weisz
CEO
MCE
Karin Burns
CEO
San Diego Community Power
Geof Syphers
CEO
Sonoma Clean Power
Girish Balachandran
CEO
Silicon Valley Clean Energy
cc: Congressional Delegation for Central Coast Community Energy, Clean Power Alliance, East Bay Community Energy, MCE, San Diego Community Power, Sonoma Clean Power, and Silicon Valley Clean Energy
SAN DIEGO COMMUNITY POWER
Staff Report – Item 9
--------------------------------------------------------------------------------------------------------------------- To: San Diego Community Power Board of Directors
From: Byron Vosburg, Director of Power Services
Via: Karin Burns Chief Executive Officer
Subject: Update on Power Resources
Date: May 26, 2022
---------------------------------------------------------------------------------------------------------------------
RECOMMENDATION
Recommendation: Receive and file update on Power Resources
BACKGROUND
Staff provides the updates below to the Board of Directors regarding SDCP’s power energy procurement activities.
ANALYSIS AND DISCUSSION
Clean Firm RFO
As SDCP strives to meet its environmental, financial, and regulatory compliance goals and requirements, long-term power purchase agreements (PPAs) are becoming integral components of its energy supply portfolio. Long-term PPAs provide renewable generation facility developers with the certain revenue stream against which they can finance up-front capital requirements, so each long-term PPA that SDCP signs with a developing facility will underpin a new, incremental renewable energy project. In addition, long-term PPAs lock in renewable energy supply around which SDCP can build its power supply portfolio while also providing power supply cost certainty around which SDCP can develop its pro forma financial model. Moreover, the California Renewable Portfolio Standard (RPS), as modified in 2015 by Senate Bill 350, requires that SDCP provide 65% of its RPS-required renewable energy from contracts of at least ten years in length.
Finally, in D.21-06-025, the California Public Utilities Commission (CPUC) required each Load Serving Entity (LSE) in California to make significant long-term purchase commitments for resource adequacy from new, incremental generation facilities that will achieve commercial operation during 2023 through 2026 for purposes of “Mid Term Reliability” (MTR).
One category of resource that the CPUC has required LSEs to procure by 2026 is “clean firm” renewable energy – capacity factor of at least 80%, no associated energy storage, and not reliant upon intermittent resources. Staff expect that these requirements are most likely to be met by bioenergy and geothermal resources.
In pursuit of long-term contracts for “clean firm” renewable energy, staff have released an RFO for eligible resources. Responses are expected to be received in the last week of June and reviewed with the Ad Hoc Contracts Committee in early July. Staff and the AHCC will evaluate submissions per the recently adopted Interim Energy Proposal Evaluation Criteria prior to entering negotiations with selected participants. Assuming that Staff and shortlisted developer(s) are able to agree to mutually agreeable contracts consistent with terms authorized by the AHCC, Staff then review draft agreements with SDCP’s Finance and Risk Management Committee (FRMC) and, presuming the FMRC supports, then with the SDCP Board for approval and authorization to execute the relevant documents.
VAMO
As discussed in the Regulatory and Legislative Update this month, the CPUC has enacted a “Voluntary Allocation, Market Offer” process(es) via which LSEs can opt to receive allocations and bid to purchase additional deliveries from PCIA-eligible resources within IOU portfolios. While the uncertainty regarding these processes, products offered, and associated contracts prevents LSEs from making informed decisions at this time, SDCP will likely need to make elections for short-term and long-term Voluntary Allocations from SDG&E’s portfolio in the coming months. Staff will convene with an Ad-Hoc Contracts Committee and confer with the FRMC and your Board as appropriate once outstanding issues have been sufficiently clarified.
COMMITTEE REVIEW
N/A
FISCAL IMPACT
N/A
ATTACHMENTS
N/A
SAN DIEGO COMMUNITY POWER
Staff Report – Item 10
--------------------------------------------------------------------------------------------------------------------- To: San Diego Community Power Board of Directors
From: Cody Hooven, Chief Operating Officer
Colin Santulli, Director of Programs
Subject: Customer Energy Programs Update
Date: May 26, 2022
---------------------------------------------------------------------------------------------------------------------
RECOMMENDATION
Receive and file an update on customer energy programs.
BACKGROUND
One of the core purposes of San Diego Community Power (SDCP), as articulated in the Joint Powers Authority (JPA) Agreement, is to foster local economic benefits such as job creation, local energy programs, and local power development.
Since our inception, the Board of Directors and staff have been diligently working to ensure a smooth rollout of the organization which have included but not limited to the hiring of permanent staff, procurement of power to meet demand, and successfully enrolling customers throughout the service territory.
Staff continues to recognize the importance of customer programs as an additional benefit and has been working to establish the foundations of customer programs and designing programs that ensure the smooth transition of customers to SDCP service.
ANALYSIS AND DISCUSSION
To this point, staff has prioritized developing programs that are necessary to ensure the successful enrollment of customers, while providing benefits to our local economy and environment, benefits our low-income customers and communities of concern, and support our member agencies. Concurrently, staff have begun development of the long-term program guidance document known as the Community Power Plan (CPP) as well as early steps to secure funding to support the portfolio of programs to be identified in the CPP. These efforts are outlined below:
Existing Programs: Programs that were necessary to implement in order to serve customers transitioning into our service or programs were previously adopted by the Board. This includes:
Net Energy Metering
• Ensures that the more than 90,000 customers that installed on-site generation transition to SDCP service.
Feed-In Tariff
• A renewable energy purchasing program which sets the rules and price for the purchase of electricity from small-scale wholesale renewable electricity projects within our service territory.
• Opened in March 2022, inquires to staff about program but no applications submitted to date.
Next Steps: Track progress and review program guidelines to identify areas for improvement.
Programs Under Development: Staff are actively working to establish and launch the Disadvantaged Communities Green Tariff (DAC-GT) and the Community Solar Green Tariff (CSGT) programs later this year. These two programs funded by the California Public Utilities Commission (CPUC) will offer 100% renewable energy to customers who are eligible for the California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance Program (FERA) discounts, and provide an additional 20% discount on the electricity and delivery portion of the customers' bills.
As noted in the Regulatory and Legislative staff report from the November 18, 2021 Board meeting, the CPUC accepted and approved SDCP's allocation request of 14.39 megawatts (MW) under DAC-GT and 4 MW under the CSGT programs, making SDCP’s program the largest allocation in the state. SDCP will also be requesting additional allocation transfer from the CPUC since the City of National City is now a member of San Diego Community Power and contains several disadvantaged communities as defined by Decision (D.) 18-06-027.
Two fully funded staff are anticipated to be brought on to support this program next fiscal year (FY). A more detailed update will be presented to the Board this Fall when the launch date is solidified.
Next Steps: Continue developing program guidelines with anticipation of submitting Advice Letter to CPUC in October 2022 seeking program approval.
Community Power Plan: The CPP will guide SDCP in the further development of program strategies that would address community needs uncovered during a community-wide needs assessment and recommend an initial 5-year program suite. The project kicked off in early May with our consultants (Arup and Kearns & West) and Community Advisory Committee (CAC) representatives. The final Community Power Plan (CPP) is expected to be presented to the Board for adoption in early 2023.
The first step is completing a community needs assessment to identify key issues that are impacting our customers and can be addressed through programs. The engagement strategy for the community needs assessment is currently under development with the heaviest initial engagement expected to begin in June and continue through September.
Engagement strategies include public listening sessions with community-based organizations (CBOs), goal setting workshops with the Board, CAC, and the public at large, tabling at community events and a broadly distributed customer survey.
Next Steps: Finalize engagement strategy and begin community needs assessment.
CPUC Funding Opportunities: Staff anticipates that a mix of funding will be required to support the full program portfolio that will be outlined through the CPP process. As such, staff are beginning the relatively lengthy administrative process to secure funding from State sources, specifically the CPUC. Beginning the process(es) now will position the organization to launch programs more expeditiously after the CPP is completed.
Additionally, the community needs assessment portion of the CPP will generate valuable market and customer information (e.g., customer preferences, existing accessible and inaccessible programs, etc.) that will be required to apply for CPUC funding. Leveraging the community needs assessment engagement process now will reduce the administrative burden and cost of developing CPUC funding applications in the future.
Staff has identified two preferred options to access CPUC program funding:
Elect-To-Administer (ETA)
• Least administratively burdensome method of accessing public funds administered by the CPUC to conduct energy efficiency work; at least 9 CCAs are administering or actively pursuing ETA funding.
• Development timeline is 9-12 months depending on staff resources and the types of proposed programs.
• Restrictive cost-effectiveness requirements make it difficult to design/implement innovative programs and limit the ability to target hard-to-reach customers. • Funding available is expected to be <$1M and reducing over time; staff to finalize funding analysis this month.
• Commercial / Industrial demand response programs have been a popular use of this funding by other CCAs to meet the restrictive cost-effectiveness requirements.
Regional Energy Network (REN)
• Significant administrative effort to develop with on-going administrative effort largely dependent on governance structure; currently five (5) RENs throughout the state (SoCalREN, BayREN, 3C-REN, I-REN, RuralREN).
• Development timeline is 12-24 months depending on staff resources, conflicts with existing, overlapping program administrators and the sectors being targeted. • Not subject to cost-effectiveness requirements; intended fill gaps in existing program offerings and serve hard-to-reach customers.
• Significant funding opportunities with the appropriate justification (e.g., Inland REN approved 6 year, $65M budget).
An additional funding model was also considered and deemed inferior to the other options:
Apply-To-Administer (ATA)
• Most administratively burdensome method of accessing public funds administered by the CPUC to conduct energy efficiency work; only one CCA has chosen this funding model.
• Development timeline is 12-24 months depending on staff resources and the types of proposed programs.
• Restrictive cost-effectiveness requirements apply to the majority of proposed programs.
• Requirement to propose entire program portfolio (i.e., Equity, Market Support, Codes & Standards, Resource Acquisition) creates the possibility for significant funding if appropriate justification is provided.
• Programs are required to be opened to everyone in the territory, regardless of if customers are actively being served by SDCP or if they have opted out of service.
Next Steps: Pending approval of related expenses in the proposed FY 22-23 budget, complete competitive procurement for consultant to assist in development of PUC application process(es) and add staff to support application development and program management.
COMMITTEE REVIEW
The Community Advisory Committee (CAC) is an active member of CPP project, with representatives meeting weekly with the consultant team and staff. Starting in May 2022, the CAC has a standing item on the CPP and related efforts, including the funding opportunities presented in this report.
FISCAL IMPACT
Fiscal impacts are factored into the proposed FY22-23 budget.
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 Utilities 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 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. SVCE settles its CAISO load at the PG&E DLAP as SVCE 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
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.
LSE – 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).
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 - Renewables 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, midpeak, off-peak and sometimes super off-peak) and by seasons of the year (summer and winter). Real time pricing differs from TOU rates 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.
62 AB Assembly Bill
AL Advice Letter
ALJ Administrative Law Judge
ARB Air Resources Board
AReM Alliance for Retail Energy Markets
BayREN Bay Area Regional Energy Network
CAISO California Independent System Operator
CalCCA California Community Choice Association
CALSEIA California Solar Energy Industries
Association
CALSLA California City County Street Light
Association
CAM Cost Allocation Mechanism
CARE California Alternate Rates for Energy
CBE Communities for a Better Environment
CCA Community Choice Aggregator
CCSF City and County of San Francisco
CEC California Energy Commission
CEE Coalition for Energy Efficiency
CLECA California Large Energy Consumers
Association
CPUC California Public Utilities Commission
DA Direct Access
DACC Direct Access Customer Coalition
DER Distributed Energy Resources
DR Demand Response
DRP Distributed Resource Plans
DWR Department of Water Resources
ECR Enhanced Community Renewable
ED Energy Division
EE Energy Efficiency
ELCC Effective Load Carrying Capacity
EPIC Electric Program Investment Charge
ERRA Energy Resource Recovery Account
ES Energy Storage
ESA Energy Storage Agreements
ESP Electric Service Provider
EV Electric Vehicle
FCR Flexible Capacity Requirements
GHG Greenhouse Gas
GRC General Rate Case
GTSR Green Tariff Shared Renewables
ICA Integration Capacity Analysis
IDER Integrated Distributed Energy Resources
IDSM Integrated Demand-Side Management
IEP Independent Energy Producers
IMD Independent Marketing Division
IOU Investor Owned Utility
IRP Integrated Resource Planning
LCE Lancaster Choice Energy
LCFS Low Carbon Fuel Standard
LCR Local (RA) Capacity Requirements
LNBA Locational Net Benefits Analysis
LSE Load-Serving Entity
LTPP Long- Term Procurement Rulemaking
MCE Marin Clean Energy
MEO Marketing, Education And Outreach
MW Megawatt
NAESCO National Association of Energy Service
Companies
NDA Non-Disclosure Agreement
NEM Net Energy Metering
NBC Non-Bypassable Charge
NRDC Natural Resources Defense Council
OIR Order Instituting Rulemaking
OSC Order to Show Cause
ORA Office of Ratepayer Advocates
PA Program Administrator (for EE Business
Plans)
PAC Public Agency Coalition
PAM Portfolio Allocation Methodology
PCE Peninsula Clean Energy Authority
PCIA Power Charge Indifference Adjustment
PD Proposed Decision
PG&E Pacific Gas & Electric
PHC Prehearing Conference
PPA Power Purchase Agreement
PRP Priority Review Project
PRRR Progress On Residential Rate Reform
PUC Public Utilities Code
PURPA Public Utilities Regulatory Policy Act
RA Resource Adequacy
RAM Renewables Auction Mechanism
REC Renewable Energy Credit
RES-BCT Renewable Energy Self-Generation Bill
Credit Transfer
RFO Request for Offers
RICA Renewable Integration Cost Adder
RPS Renewables Portfolio Standard
SB Senate Bill
SCE Southern California Edison
SCP Sonoma Clean Power Authority
SDG&E San Diego Gas & Electric
SGIP Self-Generation Incentive Program
SUE Super User Electric
SVCE Silicon Valley Clean Energy
TE Transportation Electrification
TM Tree Mortality
TOU Time-of-Use
TURN The Utility Reform Network
62 AB Assembly Bill
AL Advice Letter
ALJ Administrative Law Judge
ARB Air Resources Board
AReM Alliance for Retail Energy Markets
BayREN Bay Area Regional Energy Network
CAISO California Independent System Operator
CalCCA California Community Choice Association
CALSEIA California Solar Energy Industries
Association
CALSLA California City County Street Light
Association
CAM Cost Allocation Mechanism
CARE California Alternate Rates for Energy
CBE Communities for a Better Environment
CCA Community Choice Aggregator
CCSF City and County of San Francisco
CEC California Energy Commission
CEE Coalition for Energy Efficiency
CLECA California Large Energy Consumers
Association
CPUC California Public Utilities Commission
DA Direct Access
DACC Direct Access Customer Coalition
DER Distributed Energy Resources
DR Demand Response
DRP Distributed Resource Plans
DWR Department of Water Resources
ECR Enhanced Community Renewable
ED Energy Division
EE Energy Efficiency
ELCC Effective Load Carrying Capacity
EPIC Electric Program Investment Charge
ERRA Energy Resource Recovery Account
ES Energy Storage
ESA Energy Storage Agreements
ESP Electric Service Provider
EV Electric Vehicle
FCR Flexible Capacity Requirements
GHG Greenhouse Gas
GRC General Rate Case
GTSR Green Tariff Shared Renewables
ICA Integration Capacity Analysis
IDER Integrated Distributed Energy Resources
IDSM Integrated Demand-Side Management
IEP Independent Energy Producers
IMD Independent Marketing Division
IOU Investor Owned Utility
IRP Integrated Resource Planning
LCE Lancaster Choice Energy
LCFS Low Carbon Fuel Standard
LCR Local (RA) Capacity Requirements
LNBA Locational Net Benefits Analysis
LSE Load-Serving Entity
LTPP Long- Term Procurement Rulemaking
MCE Marin Clean Energy
MEO Marketing, Education And Outreach
MW Megawatt
NAESCO National Association of Energy Service
Companies
NDA Non-Disclosure Agreement
NEM Net Energy Metering
NBC Non-Bypassable Charge
NRDC Natural Resources Defense Council
OIR Order Instituting Rulemaking
OSC Order to Show Cause
ORA Office of Ratepayer Advocates
PA Program Administrator (for EE Business
Plans)
PAC Public Agency Coalition
PAM Portfolio Allocation Methodology
PCE Peninsula Clean Energy Authority
PCIA Power Charge Indifference Adjustment
PD Proposed Decision
PG&E Pacific Gas & Electric
PHC Prehearing Conference
PPA Power Purchase Agreement
PRP Priority Review Project
PRRR Progress On Residential Rate Reform
PUC Public Utilities Code
PURPA Public Utilities Regulatory Policy Act
RA Resource Adequacy
RAM Renewables Auction Mechanism
REC Renewable Energy Credit
RES-BCT Renewable Energy Self-Generation Bill
Credit Transfer
RFO Request for Offers
RICA Renewable Integration Cost Adder
RPS Renewables Portfolio Standard
SB Senate Bill
SCE Southern California Edison
SCP Sonoma Clean Power Authority
SDG&E San Diego Gas & Electric
SGIP Self-Generation Incentive Program
SUE Super User Electric
SVCE Silicon Valley Clean Energy
TE Transportation Electrification
TM Tree Mortality
TOU Time-of-Use
TURN The Utility Reform Network