Board of Directors &
Community Advisory
Committee
Special Meeting
Board Workshop
April 21, 2023
Welcome
&
Call to
Order
Roll
Call
4 5
THANK YOU El Centro Cultural De La Raza for the use of this beautiful space. The Centro has been a sacred space instrumental in Chican, Latin, and Indigenous art and culture. They support local artisans and artists. Rental fees for the use of this space are used on community programs. All staff here are volunteers.
Current exhibition is entitled Walking in Beauty – Indigenous Resilience. To bring awareness and advocacy for missing and murdered women and relatives.
For more information: https://centrodelaraza.com/
Jaya Bajpai
Chief Operating Officer
SDCP
Welcomes
Charlene Hoffman You!
Human Resources Analyst
Public
Comment
for Items
NOT
on the
Agenda
8 Workshop
Agenda
• Introduce Facilitator / Adopt Session Objectives / Adopt Ground Rules and Facilitation Guidelines /
Housekeeping
• Board Reflection / Strategic Plan Overview
• Status Report of 2023-2027 Key Focus Areas and Goals
• Strategic Planning Discussion Topic #1 – Draft
Community Power Plan / Proposed Program Types
• Strategic Planning Discussion Topic #2 – Distributed
Energy Resource Plan (DER Plan)
• 2023-2027 Strategic Plan Discussion – Key Challenges
• Discussion on Modifications to 2023-2027 Strategic Plan • Confirm Assignments / Evaluation / Lessons Learned /
Closing Reflection
• Closing Comments
Public
Comment for
Workshop
~ Introduce Facilitator
~ Adopt Session Objectives
~ Adopt Ground Rules &
Facilitation Guidelines
~ Housekeeping
~ Board Reflection
~ Strategic Plan Overview
Status Report of 2023-2027
Key Focus Areas and Goals
by:
CEO, Karin Burns & Team
13 San Diego Community Power
14 Our Board Members
Councilmember Ditas Yamane
City of National City
Mayor Paloma Aguirre
City of Imperial Beach
Councilmember Colin Parent
City of La Mesa
Mayor John McCann
City of Chula Vista
Councilmember Kellie Hinze
City of Encinitas
Supervisor Terra Lawson-Remer
County of San Diego
Councilmember Joe LaCava
City of San Diego
15 Our Alternate Board Members
Councilmember Marni Von Wilpert
City of San Diego
Councilmember Jack Fisher
City of Imperial Beach
Councilmember Jack Shu
City of La Mesa
Councilmember Carolina Chavez
City of Chula Vista
Supervisor Nora Vargas
County of San Diego Mayor Tony Kranz
City of Encinitas
Councilmember Marcus Bush
City of National City
16 CAC Members
National City
•Aida Castañeda, Vice Chair
•Larry Emerson
Chula Vista
•Carolyn Scofield
•Anthony Sclafani
County of San Diego
•Peter Andersen
Imperial Beach
•Anna Webb,
Secretary
•(vacant)
San Diego
•Eddie Price, Chair
•Matthew Vasilakis
La Mesa
•David Harris
•Lauren Cazares
Encinitas
•Gary L. Jahns
•Tara Hammond
SDCP
Mission Statement
San Diego Community Power is a community-owned
organization that provides affordable clean energy and
invests in the community to create an equitable and
sustainable future for the San Diego region.
SDCP is a Values Led and Mission Driven Organization
SDCP Vision
Statement
A global leader inspiring
innovative solutions to
climate change by
powering our
communities with 100%
clean affordable energy
while prioritizing equity,
sustainability, and high-quality jobs.
19 SDCP Core Values
The ‘JIST’ of SDCP
• Justice, Equity, Diversity, & Inclusion (JEDI)
• Impact
• Integrity
• Innovation
• Servant Leadership
• Togetherness
20 The Culture of ‘We’
Our Top Five ‘We’ Statements
We will put our customers and community at the heart of our decision-making process and in the actions we take; serving them with care, honesty and transparency We will value and make space for diversity and different perspectives when confronting challenges, making decisions, and working towards our common goals We will work together to build trust, empathy, togetherness, and understanding within our teams and office at large
We will work towards collaborative consensus, hear divergent views, and support the ultimate decisions of the team
We will act with integrity in all that we do
21 $1.0 Billion cumulative revenues since launch
Doubled team size from 16 to 35 – purposefully, inclusively and optimally Enrolled 833,000 customers and counting, with one of the highest participation rates at
95.9% of eligible load
Negotiated 6 PPAs, 2 of which will create 600 high paying jobs directly and 4 will support another 1,850
8.7 million bills processed; 99% billing accuracy rate. 38,000 customer calls directed to contact center
Invested $3.5 million in our community through sponsorships, grant programs and locally owned vendors
Managed through an historic summer heat wave this past September at a time when the organization was still in its infancy
Key Milestones & Accomplishments
22 SDCP Staff - #DreamTeam
Current SDCP Team
Kimberly
Isley
Laura
Fernandez
Byron
Vosburg
Lee
Friedman
Nelson
Lomeli
Lucas
Utouh
Eric
Washington
Carlos
Gomes
Carly
Newman
Ryan
Hanke
Tim
Manglicmot
Colin
Santulli
Lorena Puga
Bernaden
Stephen
Gunther
Karin
Burns
Rachel
Hommel
Sandra
Vences
Kenny
Key
23 SDCP Staff - #DreamTeam
Current SDCP Team (cont’d)
Victoria
Abrenica
Tacko
Diate-Koumba
Alyson
Scurlock
Tessa
Tobar
Jen
Lebron
Chris
Do
Samantha
Gunzl Asikeh Kanu Andréa Torres
Sheena
Tran
Karlee
Mink
Chandra
Pugh
Chris
Stewart
Morgan
Adam
Britt
Williams
Jill
Monroe
Jaya
Bajpai
Charlene
Hoffman
Key Focus Areas &
Organizational Goals
Financial Stability
Practice fiscal strategies to
promote long-term organizational
sustainability
26 GOALS
Adopt financial controls and policies to meet or
exceed best practices and manage risk.
Adopt plan to increase reserves to $175M by
10/2023 (90 DCOH) and $360M by 10/2025 (180
DCOH).
Obtain an investment grade credit rating by Nov
2025.
Develop Rate Stabilization Reserve of $70M to
mitigate power cost fluctuations and economic
downturns.
27 Goal 1: Adopt financial controls and policies
to meet or exceed best practices
and manage risk
Reviewed CalCCA Model Practices Guide & sample state audits for alignment with all best practices
Policy development including:
Approved policies - Financial Reserves Policy, resolution providing signature authority, Rate Development Policy, Budget Policy, and adopted the NIST Privacy and Security Policy Draft policies - Debt Policy, Investment Policy, Debt Collection Policy 28 Goal 2: Adopt plan to increase reserves to
$175M by 10/2023 (90 DCOH) and $360M by
10/2025 (180 DCOH)
Set rates in January to enable reserve building to 90- and 180-DCOH by 10/23 and 10/25 goals Maintained focus on controllable costs; underbudget on energy expenses Reserve balance of $203M projected by fiscal-year end, June 30, 2023 29 Goal 3: Obtain an investment grade credit
rating by Nov 2025
Expand access to credit - Secured $150M credit line to enhance liquidity -February 2023 Improved financial management and forecasting tools
Opened conversations with credit rating agencies
Energy
Portfolio Development
Provide sufficient, reasonably
priced, clean electricity to our
customers
31 GOALS
Manage portfolio to manage risk, cost, and reliability objectives through risk management tools, sufficient staffing, and staff training.
Develop secure Clean Energy Portfolio with goals of 50% RE (2022), 75% (2027), 85% (2030), and 100% (2035).
15% of our energy coming from new, distributed infill storage/solar+ storage resources in Member Agencies by 2035. 600MW of new Local Wholesale Energy and/or Battery Storage Projects (utility scale projects within San Diego and Imperial counties) by 2035.
Create high quality local jobs in renewable energy that support healthy families and vibrant communities.
Support development of innovative energy sources to improve resiliency through pilot programs, grant programs, and
partnerships.
32 Goal 1: Manage portfolio to manage risk,
cost, and reliability objectives through
risk management tools, sufficient
staffing, and staff training
Grew team from 2 to 8 in line with hiring philosophy
Maintained energy and capacity portfolios, risk hedging program, and other foundational elements of the power team while operating in an extremely volatile energy market
• Hedging strategy has saved customers $200mm+ since SDCP inception Transacted ~100+ Resource Adequacy (RA) contracts since SDCP inception 33 Goal 2: Develop secure Clean Energy
Portfolio with goals of 50% RE (2022), 75%
(2027), 85% (2030), and 100% (2035)
5 long-term, renewable PPAs
• One online
• One expected to achieve COD in June 2023
• Two renegotiated to remain viable
• VAMO contract with SDG&E
Transacted ~40 short-term renewable and carbon-free energy contracts Launched Local RFI, Clean-Firm RFO, and Nov 2022 and March 2023 Long-term Renewable RFPs
• 4-8 PPAs expected for board review in April-June 2023 Power Content expected to be ~52% Renewable and ~60% Carbon-Free in 2022. 34 Goal 3: 15% of our energy coming from new,
distributed infill storage/solar+ storage
resources in Member Agencies by 2035
Hired Sr. Manager of Local Distributed Energy Renewable Portfolio Development Reviewed various structures and methods for developing a local DER portfolio Presenting in April to Board on initial ideas for feedback and guidance to prioritize efforts 35 Goal 4: 600MW of new Local Wholesale
Energy and/or Battery Storage Projects
(utility scale projects within San Diego
and Imperial counties) by 2035
226.8 MW of Local Solar+Storage capacity under contract Initiated Local RFI, Clean-Firm RFO, and Nov 2022 and March 2023 Long-term Renewable RFPs
• 4-8 PPAs expected for board review in April-June 2023 In negotiation with developers about multiple additional potential projects 36 Goal 5: Create high quality local jobs in
renewable energy that support healthy
families and vibrant communities
250 construction jobs to be created by Viking Solar Farm 350 construction jobs to be created by Jacumba Solar & Storage Energy Farm Community Program
Delivery / Energy
Programs
Implement energy projects and programs
that reduce greenhouse gas emissions,
align energy supply and demand, and
provide benefits to community
stakeholder groups
38 GOALS
Implement CPP recommended programs through
continuous community engagement and assessment
of community benefits while considering technology/
market changes and changing community needs.
Invest in programs that target underserved
communities (communities of concern) and are
distributed throughout our Member Agencies.
Invest in programs that promote residential and
commercial solar, infill solar and/or distributed battery storage.
Develop local support for deep decarbonization
through building and transportation electrification.
39 GOALS
(Continued)
Develop workforce opportunities in the local clean
energy economy (green careers).
Support local government and state initiatives to
advance decarbonization in alignment with
Member Agency Climate Action Plans.
Provide all customers with actionable clean
energy education.
Maintain appropriate and sufficient data sources
to support smart program design, implementation
and evaluation.
40 Goal 1: Implement CPP recommended programs
through continuous community engagement and
assessment of community benefits...
Goal 2: Invest in programs that target
underserved communities (communities of concern) and
are distributed throughout our Member Agencies
Completed draft Community Power Plan (CPP)
• Added 1 FTE to support CPP development and related projects Initiate Regional Energy Network (REN) formation process • Added 1 FTE dedicated to REN formation
Created Community Grant Program - $300K expected to be granted end of this FY 41 Goal 3: Invest in programs that promote
residential and commercial solar, infill
solar and/or distributed battery storage.
Received approval from CPUC to become Program Administrator of Green Tariff programs – Disadvantaged Community Green Tariff (DAC-GT) / Community Solar Green Tariff (CSGT) • Added 1 FTE dedicated Green Tariff programs
• Largest allocation in state (20MW)
Implementation of Feed-in-Tariff program
• Projects must pay prevailing wages per the Inclusive & Sustainable Workforce Policy • Prices based on Time-of-Delivery to encourage energy storage • Bonuses to price for local businesses, previously developed sites, and projects sited within a Community of Concern
42 Goal 6: Support local government and state
initiatives to advance decarbonization in
alignment with Member Agency
Climate Action Plans
Established Energy Resiliency Working Group through partnership with the San Diego Regional Climate Collaborative (SRDCC)
Initiate Regional Energy Network (REN) formation process • Added 1 FTE dedicated to REN formation
43 Goal 7: Provide all customers with
actionable clean energy education
Ohm Connect partnership to increase awareness energy efficiency opportunities notifications Researching customer educational best practices from existing CCAs and others to support Q1 FY 23/24 initiative launch
SDCP website initiatives: “Did you know?” and “Summer Readiness” Contact Center and customer service engagement
44 Goal 8: Maintain appropriate and sufficient
data sources to support smart program
design, implementation and evaluation
Establishing process for the development of a jurisdiction-wide existing buildings database and accompanying funding gap analysis to inform future program design, scaling and potential impact
• Leveraging lessons learned from City of San Diego Building and Housing Stock Assessment
Marketing/Branding
(Trusted Brand Building)
Develop trusted brand reputation to
help drive participation in programs
and support customer service
and retention
46 GOALS
Identify and address gaps between
perception and desired brand identity.
Translate policy issues into consumer-friendly information and communication. Become known as leadership experts on the CCA model
and the industry.
Foster relationships with city planning
offices, CBOs, NGOs, and Trade Associations.
Develop relationships with industry
media and influencers.
Engage community through participation in local events. 47 Goal 1: Identify and address gaps between
perception and desired brand identity
There have been significant enrollment outreach efforts to introduce SDCP to new customers • More than 8 million impressions from billboards, radio ads, website ads, promoted social media, and posters in heavily-trafficked locations
Partnerships with the Padres, Wave Fútbol Club and San Diego Loyal SC help create trusted brand ambassadors
• More than 20 million total impressions are expected for the current seasons through in-stadium brand placement, social media mentions and joint earned media opportunities Increased focus on earned media
• Worked with hyper-local news outlets that are seen as trusted community leaders such as the Ramona Sentinel, The Star News and Borrego Sun
48 Goal 2: Translate policy issues into consumer-friendly information and communication The SDCP website is constantly being updated and revised to make information easier to understand
• SDCP often prioritizes edits based on customer feedback Press releases and news stories that explain SDCP-related issues provide customers with easy-to-understand information Created a bill explainer video and a bill comparison tool to help customers better understand their bills
Regular posts on Facebook, LinkedIn, Twitter and Instagram keep customers apprised of our activities
49 Goal 3: Become known as leadership experts
on the CCA model and the industry
CEO featured on Flanigan's Eco-Logic podcast as a CCA expert Acted as contributors to the CalCCA Model Practices Guide • CFO Eric Washington
• Managing Director of Power Services Byron Vosburg
• Director of Regulatory & Legislative Affairs Laura Fernandez Participated in over a dozen interviews with media outlets about what a CCA is and how it makes an impact on customers
50 Goal 4: Foster relationships with city planning
offices, CBOs, NGOs, and trade associations
Created a Strategic Partnerships section in the Public Affairs team that works with member agency staff, large nonprofits and businesses
Participated in regular meetings with city officials
• Monthly check-ins with member agency staff
Presented at more than a dozen community planning group and trade association meetings Worked with a variety of nonprofits to sponsor and attend events • More than $50,000 has been invested in community events this fiscal year 51 Goal 5: Develop relationships with
industry media and influencers
Increased earned media opportunities by
reaching out to a diverse group of local and
statewide reporters
Hosted background information sessions for
reporters from key local outlets to help them
better understand SDCP's mission, vision,
values, goals and operations
Hired a Sr. Manager of Marketing &
Communications with San Diego media
relations experience
52 Goal 6: Engage community through
participation in local events.
Averaged attending 8 events per month since the beginning of FY23 (with a small staff) Created a tracking system to create an equitable outreach plan • FY23 focused on outreach in National City and the unincorporated areas of San Diego County due to enroll on April 1
Developed a sponsorship policy to invest in organizations that align with SDCP's mission, vision, values and goals
• Sponsored 20 different events and organizations including Lung Force Walk, "Electrification, Equity, & Efficiency" Exhibit at the Art Produce Gallery and South Bay Earth Day Legislative/Regulatory
Advocate for public policies
that advance
SDCP organizational priorities
54 GOALS
Proactively educate and engage policymakers to
develop policies that support SDCP’s organizational
priorities, including advocacy around PCIA reductions.
Sponsor and support legislation and regulation that
is consistent with SDCP’s mission, vision, and goals.
Develop annual legislative plan to advance and support SDCP objectives and share with local Senate and
Assembly members and staff.
Develop plan to meet more proactively with and
educate key decisionmakers (e.g. CEC, CPUC
commissioners).
Coordination with Member Agency government affairs’
teams to align on legislative positions.
Continue to be an active participant in CalCCA and
develop partnerships and coalitions to advance SDCP’s
policy and legislative agenda through CalCCA efforts.
55 Goal 1: Proactively educate and engage
policymakers to develop policies that
support SDCP’s organizational priorities,
including advocacy around PCIA reductions
Hosted in-person Sacramento Lobby Day on March 9, 2023 Conducted over 30 meetings with stakeholders and policymakers in Sacramento and San Francisco
Developed one-pager "leave behind" document for stakeholder meetings Active litigating of Energy Resource Recovery Account (ERRA) proceedings (PCIA is derived from indifference amount, which is updated annually in ERRA) 56 Goal 2: Sponsor and support legislation
and regulation that is consistent with
SDCP’s mission, vision, and goals
Submitted support letters for 5 pieces of legislation in the current legislative cycle Lobbyists testify in support of legislation that we are supporting Weekly meetings with CalCCA Legislative Committee and SDCP Lobbyists to track current legislative activities
Active monitoring of over 40 CPUC proceedings with strategic intervention and commenting 57 Goal 3: Develop annual legislative plan
to advance and support SDCP
objectives and share with local Senate
and Assembly members and staff
Regulatory and Legislative Policy Platform already updated for current year, posted to website Feedback solicited internally and externally
Lobbyists use Policy Platform as a guide in lobbying efforts and share with legislative delegation 58 Goal 4: Coordination with Member
Agency government affairs’ teams
to align on legislative positions
SDCP policy staff regularly meet with member agency staff Regular coordination and communication between City of San Diego Mayor's Office and SDCP SDCP lobbyists dialoging with member agency lobbyists 59 Goal 5: Continue to be an active
participant in CalCCA and develop
partnerships and coalitions to advance
SDCP’s policy and legislative agenda
through CalCCA efforts
Active ongoing participation on CalCCA regulatory, legislative and compliance committees Tiger team membership and support
CEO elected to CalCCA Executive Committee
CalCCA Lobby Day on March 8 and SDCP Lobby Day on March 9 in Sacramento Staff supporting and co-hosting CalCCAAnnual Conference in San Diego in May 2023 Data Analytics &
Account Services
Ensure high customer retention
and satisfaction
61 GOALS
Ensure customer satisfaction through
key relationships including back-office support
and key stakeholders.
Continually strive to offer competitive rates.
Maintain and grow high levels of customer
participation and satisfaction.
Achieve 10% of our load at the Power 100 service
level by 2027.
Build a robust data ecosystem for effective
procurement, including program design,
management & evaluation.
62 Goal 1: Ensure customer satisfaction
through key relationships including back-office support and key stakeholders Current active accounts count of 832,719 and growing (2nd largest CCA) 8.7 million bills processed and over $1.0 billion dollars cumulatively billed so far Over 99% bill accuracy and timeliness
Over 38,000 customer calls directed to our Contact Center so far with an average of 14 seconds to connect with a Customer Service Rep
3,610 customer service emails answered or escalated within 24 hours Creation of Power100 Champions in our region
Weekly status calls with Calpine Energy Solutions and SDG&E to enhance customer operations Weekly calls with CalCCA and other CCAs on billing and customer operations that ensure SDCP is providing a world class customer experience
63 Goal 2: Continually strive to offer
competitive rates
Board approved rates effective February 2023 that provide a 3% value proposition relative to SDG&E's base commodity rates
Our customers are currently paying 1%-2% less on their total electric bill compared to SDG&E while getting much more renewable energy service
64 Goal 3: Maintain and grow high levels of
customer participation and satisfaction
Exceeding participation rate goal of 95%
Current participation rate by number of customers is 96.3% Current participation rate by load at 95.9%
For reference, as of March 2023, Clean Power Alliance's overall participation rate was 93% with Clean Energy Alliance's at 91.9%
65 Goal 4: Achieve 10% of our load at the
Power 100 service level by 2027
Current Power100 participation rate by load at 7.31%
Current Power100 participation rate by revenue at 7.14% 66 Goal 5: Build a robust data ecosystem for
effective procurement, including program
design, management & evaluation
Adoption of BigQuery/Google Cloud Platform(GCP) as our data warehousing solution Creation of robust retail data pipelines from SDG&E/Calpine into SDCP's GCP account Creation of a bill scraping tool that allows us to monitor bill volumes, accuracy, timeliness etc. Leveraging Business Intelligence analytics to track KPIs including revenues, participation rates, accounts payable, load forecast, customer engagement etc.
Organizational Development
& Excellence
Ensure excellence by adopting sustainable
business practices and fostering a workplace
culture of innovation, diversity,
transparency and integrity
68 GOALS
Create an organizational culture of inclusion, mutual respect, trust, innovation, and collaboration that
upholds organization's core values.
Develop an annual staffing plan that identifies and
addresses resource needs and gaps.
Provide training and professional development
opportunities that build new skills and abilities.
Foster culture of innovation to yield solutions that
accelerate our mission and drive toward SDCP’s vision.
Build institutional capacity of CAC and the Board to
support the mission and core goals of SDCP.
Design & implement an internal program that attracts
workforce from our member cities and
creates opportunities for candidates new to CCAs and
the industry.
69 Goal 1: Create an organizational culture
of inclusion, mutual respect, trust,
innovation, and collaboration
that upholds organization's core values
2 Day JEDI Training
Development of WE statements
Multiple team bonding events
Listening sessions
Monthly recognitions
Team events (Summer picnic, Holiday party, Baby Showers, Anniversaries, Birthdays, Team lunches, etc.)
1 hour Mission-Vision –Values –Goals orientation for each new team member 70 Goal 2: Develop an annual staffing plan
that identifies and addresses resource
needs and gaps
Developed staffing plan through FYE 2023, over 95% of planned hires completed Developed hiring process, policies, and salary bands
Thoughtful hiring to best invest in and reflect our San Diego communities Team optimization
Doubled team size to 35 within 9 months
71 Goal 3: Provide training and
professional development opportunities
that build new skills and abilities
Conflict Management Training
Communication Styles Training
Effective Presentations Training
Brown Act, Ethics & Public Records Request Training
$1,500 separate stipend for individual professional growth & dev Subscription to full suite of Linked-In learnings for entire team Performance reviews
Career pathing
72 Goal 4: Foster culture of innovation to
yield solutions that accelerate our
mission and drive toward SDCP’s vision
2- day Innovation workshop with East Bay Community Energy Start-Up guest speakers / brown bag lunches (Nuvve, GRID Alternatives) Ongoing communications with / Board seat on San Diego Cleantech Foundation Ongoing meetings with innovative companies to understand technologies 73 Goal 5: Build institutional capacity of
CAC and the Board to support the
mission and core goals of SDCP
Detailed four- hour Board & CAC Orientation and handbook Annual strategic planning session involving Board, CAC and Staff Scheduled Meet & Greets with Board and/or CAC members Established Board & CAC Ad Hoc committees (Executive, Programs, Community, Contracts) CAC Workplan development
74 Goal 6: Design & implement an internal
program that attracts workforce from our
member cities and creates opportunities for
candidates new to CCAs and the industry
Internal hiring philosophy promotes building industry capacity through our direct hires Additional workforce development plans in early discussion 10 minute Break
Roll
Call
Strategic Plan
Discussion Topic #1
Draft Community Power
Plan / Proposed Program
Types
Customer Energy
Programs
Discussion by Colin Santulli, Director
Programs
April 21st 2023
79 Community Power Plan
Community
Power Plan
Community goals,
needs, and
priorities
Organizational
goals, needs, and
priorities
Existing programs
and awareness
Funding
availability
SDCP’s five-year strategic
plan for customer energy
programs
80 Process
*
Engage
with community
members
Survey the
community to
determine
most prioritized
issues
Report back to
the community on
needs uncovered
Assess
which programs
may
meet community
needs
Draft the
Community Power
Plan and release
for public review
and comment
Adopt the final
Community Power
Plan to guide
program
development
July – October 2022 November – December 2022 January – May 2023 Community Needs Assessment
82 • Learn the goals, needs, and priorities of our community and stakeholders (internal and external) to ensure that future SDCP program offerings align • Engaged community leaders and member agency staff to inform engagement strategy • Co-hosted 12 listening sessions with community-based organization engaging nearly 200 community members
• Pop-up events in unincorporated San Diego County engaging over 100 community members
• Six interviews with interest group stakeholders
• Virtual workshops with businesses, large accounts, and the public engaging over 40 participants
Community Needs Assessment
83 • Further understand the diverse needs and priorities of SDCP’s communities
• Open for 7 weeks between August-October 2022
• Available in English, Spanish, and Tagalog
• Promoted widely, including:
o Mailer to over 600,000 customers
o Customer bills, website banner, social media posts,
and targeted ads in hard-to-reach communities
o Print ads in Spanish and Filipino-speaking
publications
o In-person survey collection at community events
Community Needs Survey
84 2,980
complete, validated responses from within SDCP’s
service territory
2,849 residential
131 commercial
Survey Responses
Recommended Program Types
Short-Term Program Types
87 Short-Term (FY23/24 – FY 24/25)
• Relatively low-cost
implementation
• Filling immediate needs
and increase visibility
• Leverage existing external
funding and/or minimal
SDCP funding commitment
• Pilots to prepare for mid-term broader incentive
programs
Strategy Program Types
Customer Energy Awareness and Education
Application Assistance
Disadvantaged Communities Green Tariff and
Community Solar Green Tariff
Pilot Programs
Grant Programs
88 Customer Energy Awareness and Education
Description & Benefits
• Help customers understand and be aware
of all-things energy (e.g., energy bills, how
usage impacts costs, benefits of clean
energy)
• Lists of vetted contractors and equipment
installers
• Can lead to behavioral changes that reduce
energy use/bills and help increase
awareness of programs
Design & Funding Considerations
• Partner with community-based
organizations to increase access to
resources and grow awareness of SDCP –
provide funding to them to help administer
education programs
• Target K-12 classrooms
• Contractor training to support clean energy
technologies
• Fund from SDCP revenues to expedite
implementation
Short-Term
89 Application Assistance
Description & Benefits
• Many programs are already available to
SDCP customers that can help meet
community needs, but application
processes can create barriers
• Connect customers to existing resources to
support bill reductions and clean technology
adoption
Design & Funding Considerations
• Target application assistance for under-resourced community members, small businesses, and organizations that support
Communities of Concern
• Work with partners to identify a targeted list
of program types to provide application
assistance for
• Allocate internal resources (i.e., SDCP staff
time)
Short-Term
90 Green Tariffs
Disadvantaged Communities Green Tariff (DAC-GT) & Community Solar Green Tariff (CSGT) Description & Benefits
• Provide benefits of solar at a 20% bill
discount to income-qualified residential
customers in under-resourced communities
with barriers to installing solar on their roof
• CalEnviroScreen tool identifies eligible
“disadvantaged communities” as census
tracts that are disproportionately burdened
by and vulnerable to multiple sources of
pollution
Design & Funding Considerations
• Partner with community-based
organizations and remove jargon from
program descriptions to increase
awareness of program benefits/keep
customers from opting out
• Fully CPUC-funded; design elements are
established by the CPUC
Short-Term
91 Pilot Programs
• Test innovative program
concepts and/or business
models
• Answer questions related to
program implementation (e.g.,
program design, delivery, and
customer acceptance) before
attempting to scale a program
• Opportunity to partner, support,
and learn from community-based organizations
• Integrate opportunities to
capture lessons learned (e.g.,
data capture, performance
evaluations, on-going
stakeholder dialogue)
• Fund smaller projects from
SDCP revenues and seek
external funding to scale or
maximize impact
• Emergency Water Heater
Loaner Grant from TECH
Clean CA
o Provides a temporary water
heater for emergency
replacements while
electrical work is done to
support a heat pump water
heater
• Education on the price of
time-of-use periods using
visual cues
• Roof repairs to support solar
systems incentivized by State
programs
Description & Benefits Design & Funding
Considerations Example Concepts
Short-Term
92 Grant Programs
Description & Benefits
• Support creative ideas that may not be
possible through traditional funding sources
• Create tangible trust- and relationship-building opportunities • Increasing visibility of SDCP within the
communities it serves
Design & Funding Considerations
• Focus on addressing the key priorities
heard during the community engagement
process for the CPP
• Consider partnering with trusted and proven
regional organizations to streamline grant
program development and implementation
while easing administrative burden on staff
• Internal funding initially, future philanthropic
funding may be available for future grant
programs
Short-Term
93 Short-Term (FY23/24 – FY 24/25)
• Relatively low-cost
implementation
• Filling immediate needs
and increase visibility
• Leverage existing external
funding and/or minimal
SDCP funding commitment
• Pilots to prepare for mid-term broader incentive
programs
Strategy Program Types
Customer Energy Awareness and Education
Application Assistance
Disadvantaged Communities Green Tariff and
Community Solar Green Tariff
Pilot Programs
Grant Programs
Mid-Term Program Types
95 Mid-term (FY25/26 – FY26/27)
• External funding sources
developed
• Better positioned to direct
internal revenues to
customers via programs
• Require more time to
establish
• Require identifying and/or
gathering additional data
Strategy Program Types
Building Electrification: Appliances
Building Electrification: Heat Pump Technologies
Distributed Energy Resources: Energy Storage Systems
Distributed Energy Resources: Demand Response
Energy Efficiency
Transportation Electrification: Infrastructure
Transportation Electrification: Light-Duty Vehicles
Transportation Electrification: Medium- and Heavy-Duty Vehicles 96 Appliance Electrification
Description & Benefits
• Encourage adoption of electric building
appliances (e.g., stoves and clothes dryers)
• Induction stoves provide a safer cooking
environment, improved indoor air quality,
and are more efficient than gas stoves
• Heat pump dryers are more efficient, can
have lower installation costs due to not
needing vents, and require less
maintenance
Design & Funding Considerations
• Provide education and outreach for
induction cooking (including
demonstrations) and incentives to offset
higher equipment costs
• Offer incentives for panel upgrades (e.g.,
direct installation or up-front incentives for
income-qualified and Communities of
Concern)
• Federal IRA funding coming via CA Energy
Commission
Mid-Term
97 Heat Pump Technology
Description & Benefits
• Encourage installation of electric heat
pumps for space heating, cooling, and
water heating
• More efficient and cleaner than gas
counterparts, less indoor air pollution
• Electrical panel upgrades may be needed
and can often be a barrier for projects due
to costs
Design & Funding Considerations
• Direct installation programs for income-qualified and multi-family affordable housing that include renter protections
• Contractor training and mid-stream
incentives to address lack of skilled labor
and equipment carried
• Support customers with federal IRA funding
(e.g., HOMES Rebate)
• Fund incentives with SDCP revenues
to stack on top of TECH Clean California
funding
Mid-Term
98 Energy Storage Systems
Description & Benefits
• Support installation of energy storage
systems to be paired with renewable
energy resources (e.g., onsite solar)
• Cleaner and makes better use of
renewables (less reliance on fossil-fuels)
• Can increase grid resiliency and provide
backup power during outages
Design & Funding Considerations
• Work with local governments/others to
implement energy storage at scale in critical
facilities or resilience hubs
• Incentives to stack on other energy storage
funding sources (e.g., Self-Generation
Incentive Program) or creative financing
(up-front incentives instead of rebates)
• Consider federal EPA Greenhouse Gas
Reduction Fund (GGRF) opportunities
Mid-Term
99 Demand Response
Description & Benefits
• Incentivize customers to reduce electricity
use during peak demand on grid
• Encourages behavioral changes or smart
devices to shift or reduce usage
• Helps control customer costs, increases
grid resiliency, and makes best use of
renewables
Design & Funding Considerations
• Gap around installing smart controls on
other systems (e.g., heat pumps, electric
vehicle chargers, energy storage) – could
establish technology requirements across
other programs
• Monitor CEC and CPUC for funding
opportunities
• Consider opportunities to leverage SDCP
procurement budgets in cases where
demand response programs could reduce
resource adequacy obligation and costs
Mid-Term
100
Energy Efficiency
Description & Benefits
• Measures to reduce the amount of energy
buildings use – results in lower bills and
increased indoor air quality and comfort
• Examples: Insulation, improved windows
and doors, and cool roofs
Design & Funding Considerations
• Consider free or low-cost upgrades for
income-qualified and Communities of
Concern
• Address the split incentive between tenants
and landlords for multi-family buildings
• Regional Energy Network is primary
potential funding source
Mid-Term
101
Electric Vehicle Infrastructure
Description & Benefits
• Support deployment of charging
infrastructure and related technologies
• Help increase customer confidence to
switch to an electric vehicle (reduced
carbon emissions and local air pollution)
Design & Funding Considerations
• Focus on geographical areas or market
sectors (e.g., multi-family housing and
Communities of Concern) where private sector
is not investing
• Add incentives to stack on existing regional
and state funding opportunities
• Partner with SANDAG, Air Pollution Control
District, and member agencies via Accelerate
to Zero Emissions Collaboration
• CPUC Locally Invested Transportation Equity
funding
Mid-Term
102
Vehicle Electrification (LD, MD, HD)
Description & Benefits
• Support the transition to electrification
• Reduces carbon emissions and improve
local air quality
• Reduces vehicle operating and
maintenance costs
• Potential to help with grid resiliency
Design & Funding Considerations
• Prioritize expanding access to electric
vehicles for income-qualified customers
• Communities around ports are
disproportionately impacted where heavy
commercial vehicles regularly travel
• Partner with car dealerships to offer point-of-sale incentives on used vehicles instead of after-sale rebates
• Fund incentives from SDCP revenues to
stack on available state/regional funding
Mid-Term
103
Mid-term (FY25/26 – FY26/27)
• External funding sources
developed
• Better positioned to direct
internal revenues to
customers via programs
• Require more time to
establish
• Require identifying and/or
gathering additional data
Strategy Program Types
Building Electrification: Appliances
Building Electrification: Heat Pump Technologies
Distributed Energy Resources: Energy Storage Systems
Distributed Energy Resources: Demand Response
Energy Efficiency
Transportation Electrification: Infrastructure
Transportation Electrification: Light-Duty Vehicles
Transportation Electrification: Medium- and Heavy-Duty Vehicles Lunch Break
~12:15-1:00
Roll
Call
Strategic Planning
Discussion Topic #2
Distributed Energy
Resource Plan
(DER Plan)
Distributed
Energy
Resources
Discussion by Morgan Adam, Manager
Power Services
April 21st 2023
108
SDCP Distributed Resource Planning
NEM
Customer Programs
Wholesale Procurement
109
Net Energy Metering
• Existing tariff • How most residential and C&I
customers utilize distributed solar
and storage
• Recent CPUC adoption of NEM
3.0 (also known as Net Billing
Tariff) reduces value of exported
energy, challenging economics
• Expected to remain a significant
enabler of solar and storage
adoption and will help drive
energy storage deployment
110
Customer Energy Programs
• Pilot Programs
• Green Tariffs
• Building Electrification
• Transportation Electrification
• Customer Solar, Storage, and Demand
Response (Virtual Power Plants)
111
Wholesale Procurement Opportunities
• Feed-in Tariff (FIT)
• Green Tariffs
• Disadvantaged Communities Green
Tariff (DAC-GT)
• Community Solar Green Tariff (CSGT)
• Local Request For Information (Local RFI)
• All-source Renewable Energy RFPs
• Local Infill Plan (LIP)
112
Initial LIP Buildout
• Feasibility assessments with
consultant support
• Site preliminary designs &
pre-engineering
•Holistic prioritization (price,
community and workforce
attributes, RA & grid
participation potential, etc)
• Regulatory and legislative
evolution
• Interconnection backlogs
• Supply chain challenges
• Local & state permitting to
facilitate renewable
development
• Member agency staff and
parcels
• SD County Regional Decarb.
Framework
• Collaboration w/ Industry and
Private Land Owners
•Within SDCP member
communities
• Primary : Rooftops and
Parking Lots
• Secondary : Infill Land
Parcels
• Public or Private Owned
•Distribution level
interconnection
Sites Resources
Assessment Dynamic
Landscape
113
LIP Site Identification
Sector Examples
Public
Member Agency
Parcels
Other Public
Agencies
School Districts
Private
Property Owners
Developers /
Retailers
REITs
LIP Round 1:
Overlap with current
Feed-in-Tariff and Local RFI
LIP Round 2:
Initial area of focus
114
Possible Implementation Plan –
Member Agency Opportunities
• Compile list of potential sites
with member agencies
• Conduct initial site
assessments and feasibility
studies
• Finalize shortlist of viable
opportunities
SITE SELECTION
• Group viable sites into
portfolio
• Vendor Selection via
Public Solicitation
• Contract Execution
PROCUREMENT
• Projects are designed and
permitted
• Awarded vendor procures and
constructs project at member
agency sites
• SDCP oversees project
execution
IMPLEMENTATION
Current Phase
115
Infill / Distributed Local Development
Next Steps to Develop Local Infill Plan in next 6 Months Feedback and guidance from SDCP Board, Community Advisory Committee, and other stakeholders to confirm needs and goals
Continued discussion and collaboration with other CCAs and potential partners for shared experiences, lessons learned & best practices Visit with member agencies to evaluate potential sites and opportunities Review scope and schedule of initial Local Infill Development plan with SDCP Board
116
Action for today
• Please direct us to the appropriate staff within each of your teams to assist with site review and selection
• Initial guidance and suggestions
• Any questions?
2023-2027 Strategic Plan
Discussion
Key Challenges
Challenges
Power Services Presentation –
Byron Vosburg
Reg & Leg Presentation –
Laura Fernandez
119
Regulatory and Legislative Challenges
The Big Picture: Clarity on Jurisdiction and CCA Autonomy What differentiates CCA Programs from Direct Access providers and Investor-owned Utilities (IOUs)? • Local elected officials get to decide whether a community joins a CCA Program • Decision making authority held by locally elected officials that comprise our board • Ratemaking Autonomy = Board sets rates
• Procurement Autonomy = Board decides what resources to procure and from where • Programs Autonomy = Board decides what programs to offer, to who and when • Nonprofit
• This local aspect enables CCAs to tailor rates, programs, and procurement to local needs • Relatively new model means a lack of clarity on jurisdiction and objectives in legislative and regulatory bodies
120
Legislative Proposals
Budget Change Proposal and AB 1373 (Policy Bill) Concerns Proposals to:
1. Expand CPUC Jurisdiction over CCA procurement autonomy
2. Create a new Central Procurement process to allow Department of Water Resources or investor-owned utilities to procure new resources
3. Enact Capacity Penalty Payments for load-serving entities that are short on year ahead Resource Adequacy requirements
121
Integrated Resource Planning Primer
Background
• All load serving entities under the jurisdiction of the CPUC are required to file an Integrated Resource Plan (IRP) every two years
• The IRP looks out at a multi-year horizon (2023-2035) and details the procurement plan for meeting state goals
• Plans are assessed for greenhouse gas emissions, reliability, and local air pollutant minimization in disadvantaged communities
• The IRP is a compliance filing that is a long-term plan and modeling exercise, therefore it is non-binding
• SDCP filed IRP most recently in 2022
• SDCP’s procurement strategy may evolve from the 2022 IRP 122
Expansion of CPUC Jurisdiction via
proposed Legislation
CCAs would be subject to same requirements as IOUs for IRP • CCAs are not “public utilities” or “electrical corporations” subject to the broad jurisdiction of the CPUC
• CCAs must have the flexibility to modify their plans, as market conditions and customer needs evolve, while still meeting or exceeding state procurement requirements • The current proposals would place detailed, significant new requirements on CCAs - effectively giving the CPUC control over CCA procurement and cost recovery (rates) 123
Central Procurement: Quick Primer
Central Procurement Overview
• To meet state procurement goals, a centralized procurement process would enable the DWR or IOUs to procure energy resources on behalf of LSEs
• The intent is to meet growing clean energy needs that LSEs may not be able to procure themselves due to expense and risk
• This would have an impact on CCA procurement and rates • Costs of centralized procurement for the state would be recovered by ratepayers • The state has limited history of central procurement in response to the early 2000s energy crisis • IOUs currently can act as the central procurement entity for RA in PG&E and SCE territories but have faced challenges in this role
124
Central Procurement: Underlying Challenges
Lack of infrastructure (interconnection/transmission)
• Load serving entities, including CCAs, have met requirements for new, clean energy resources • Load serving entities exceeded Mid Term Reliability procurement order • CCAs over-procured by 500 MWs
• CCAs have collectively identified over 790 MWs that they have procured but are experiencing significant interconnection delays
• CCAs have attempted to procure geothermal and have reached out to developers to procure offshore wind, however, the necessary infrastructure (transmission) is not available for procurement contract negotiations to begin
125
Central Procurement: Underlying Challenges
Challenges with the Central Procurement Budget Proposal • SDCP understands that the intention may be to spur offshore wind or geothermal development • However, there are currently no guard rails on the types of projects that may be directed • Example: long lead time projects (5+ years) in resource rich areas (e.g. Salton Sea) • No guidance on how the CPUC will account for procurement plans of other LSEs before directing procurement
• There is currently a potential for this proposal to override individual LSE procurement • Without clear boundaries on what projects the central procurement entity would be established for, it would seem developers may be hesitant to enter procurement discussions with LSEs 126
Resource Adequacy: Quick Primer
Resource Adequacy Overview
• The goals of the resource adequacy program are to ensure the safe and reliable operation of the grid by ensuring sufficient capacity is available when and where it is needed • CPUC manages the RA program in coordination with CAISO • LSEs are obligated to procure and demonstrate sufficient RA resources to meet demand • If LSEs are unable to procure sufficient RA, they are charged a penalty by the CPUC • If CAISO backstops the deficiency, the LSE also pays CAISO 127
Resource Adequacy: Capacity Payments
Challenges with the RA Capacity Payment Proposal
• Proposal for LSEs that fail to meet RA obligations (short) to pay capacity payment into strategic reliability reserve • Penalty would be an additional penalty on top of payments already made to CPUC and CAISO • RA penalties go to General Fund, not to new procurement contracts • Shortage of RA supply in the market that is not addressed by the proposal • Many LSEs are unable to comply despite best efforts and willingness to pay high prices • Requiring LSEs to pay both a CPUC penalty and a DWR capacity payment for deficiencies when the RA market supply is insufficient to meet the needs of all California LSEs penalizes customers with higher costs. Unclear whether it would provide significant new supply
• New build is driven by the IRP process, not the RA program 128
Expansion of CPUC Jurisdiction
Proposal in Resource Adequacy Proceeding to Freeze CCA Expansion • Energy Division staff proposes limiting expansion and taking on new customer load for any CCA that has had even a minor deficiency in the last 2 calendar years • Deficiency of greater than 2.5% of its system RA requirement on a month ahead RA filing • Lack of jurisdictional clarity: CPUC lacks authority under AB 117 to prohibit CCA formation or, by extension, CCA expansion
• Lack of jurisdictional clarity: The CPUC's RA authority under Public Utilities Code Section 380, while permitting enforcement, does not expand its jurisdiction over CCAs 129
CPUC Jurisdictional Clarity
Effective Dates for CCA Expansion Plans
• CPUC has a ministerial duty to certify amended implementation plans within 90 days of submission to determine earliest possible effective date for implementation of CCA programs • Energy Division recently certified implementation plans for East Bay Community Energy and Central Coast Community Energy, but withheld effective dates for launch
• Draft Resolution E-5258 (to be voted on April 27) sets January 1, 2025 as the earliest effective dates, rather than proposed 2024 launch dates
• Justification cited is failures of these CCAs to procure sufficient capacity in the past (citations for violations of RA program)
• Neither Section 366.2(c)(8) nor Resolution E-4907 provide for a draft resolution process to determine an effective date for CCA implementation plans.
• Unclear if Energy Division has authority to create new administrative procedure for the purpose of delaying performance of its statutory obligations.
• Petition for Writ of Mandumus filed and ongoing
130
Regulatory and Legislative Challenges Review
Proposals at Legislature, CEC and CPUC
• Legislative Proposals would expand jurisdiction of CPUC effectively giving the CPUC control over CCA procurement and cost recovery, increase penalties for RA, and establish central procurement entity that could drive procurement efforts of individual entities • CPUC actions may impact expansion of two CCAs due to RA non-compliance • Separate Energy Division Proposal would freeze expansion of CCAs if not meeting RA requirements
131
Energy Procurement Challenges
Power and Gas Market Volatility
1. Geopolitical unrest drives global gas markets
2. Climate change-fueled weather events
exacerbates impacts in CA and WECC
132
Energy Procurement Challenges
Pandemic-related Supply Chain Delays and Cost Increases
1. New projects delayed
2. Many PPAs renegotiated
3. Buyers and their customers bear additional
cost and risks
133
Energy Procurement Challenges
Permitting Delays Continue
134
Energy Procurement Challenges
Interconnection Backlog Worsens
1. CAISO CEO says the current process
“just doesn’t work”
2. “The total capacity of all projects
awaiting interconnection now exceeds
the capacity of the entire U.S. power
plant fleet”
135
Energy Procurement Challenges
CA Capacity Shortfall
1. Retirement of fossil and nuclear units, not just in CA but throughout WECC
• CA has historically relied on neighbors, now
competing with them
2. Incremental intermittent resources reduce their
ability to reliably serve load
3. Increased electrification and extreme heat events
increase demand
136
Energy Procurement Challenges
CA Energy Policy Is Inefficient, Reactionary, and Overly Complex
1. Frequent redesign of CPUC RA program, which overlays CAISO RA requirement
a) “Fighting the previous battle”
b) Short-term focus vs long-term solutions
2. Ever-changing IRP requirements and methodologies
3. Constant “distractions”
Or … (“What Laura said!”)
137
Energy Procurement: The Tailwind
We’re ready to go.
Morgan Adam
Senior Local Development
Manager
10 minute Break
Roll
Call
Discussion on modifications
to 2023-2027 Strategic Plan
Confirm Assignments
Evaluation
Lessons Learned
Closing Reflection
Closing Comments
Adjournment
Board of Directors
Next Regular Meeting
April 27, 2023