Board of
Directors
Regular Meeting
April 27, 2023
Welcome
&
Call to
Order
Roll
Call
4 Items to
be Added,
Withdrawn
or
Reordered
on the
Agenda
Public
Comment
for Items
NOT
on the
Agenda
7 Consent
Agenda
1. Approval of October 27, 2022 Meeting Minutes
2. Receive and File Treasurer’s Report for Period Ending February 28, 2023
3. Receive and File Update on Back Office Operations
4. Receive and File Update on Marketing and Public Relations
5. Receive and File Update on Regulatory and Legislative Affairs
6. Receive and File Update on Power Services
7. Receive and File Update on Human Resources
8. Approval of Third Amendment to Information Technology (IT) Agreement with Brentech Inc. for up to $77,380 for Computer-Related and Information Technology (IT) Related Services and Technical Labor Services to SDCP through June 30, 2024
9. Approval of Professional Services Agreement with The Energy Coalition up to $350,000 for Consulting Services to support the formation of a Regional Energy Network through December 31, 2024
Public
Comment
for
Consent
Agenda
9 Regular
Meeting
Agenda
10. Approval of Debt Policy
11. Quarterly Report for the Community
Advisory Committee
12. Approval of Community Advisory
Committee (CAC) Appointment for
County of San Diego
13. Approve Market Offer Confirmation
Letter for Purchase of Long-Term
Market Offer RPS Energy from PG&E
and authorize CEO to execute the
agreement
10 Item 10
Recommend Board Approval of the SDCP Debt
Policy
Recommendation: Approval of the Debt Policy
Presenter:
Dr. Eric Washington,
Chief Financial Officer
11 Development of Debt Policy
4.12.2 Two-thirds vote (or such greater vote as
required by state law) of the appointed Directors
shall be required to take any action on the
following:
(a) Issue bonds or other forms of debt;
12 Development of Debt Policy
Debt Policy
Peer
CCAs
Member
Agencies
Financial Best
Practices
Scope
Tax Exempt
and Taxable
Permitted
Debt Type
Covenants
Scope and Authority
Debt Issuance
Debt Management
CA Government
Code Section 8855
Senate Bill 1029
13 Additional Policy Elements
SDCP has added three additional requirements to its proposed debt policy which are not required by local, state or federal law.
Green Bonds
To the extent possible, SDCP bond
issuances shall be green bonds. A
green bond is a type of fixed-income
instrument that is specifically
earmarked to raise money for
climate and environmental projects.
Pledged Revenues
No less than one and a half times
(1.5x) the maximum annual principal
and interest and debt service for the
aggregate outstanding senior lien
bonds including the debt service for
the new issuance.
Annual Debt Service
Long-term debt shall not exceed 5%
of the Agency’s annual total
expenses.
14 Permited Debt Types
Finance capital
expenditures
Structured within
expected useful life
Long-Term Debt Short-Term Debt
Interim funding
pending long-term debt
Maturity generally less
than 7 years
Variable Rate Debt
Long-term variable
rate debt as needed
Refunding Debt
Refinance bonds
Achieve debt service
savings
Restructure debt
service payments
Modify covenants
Reduce exposure to
counterparties
SDCP may legally issue both short-term and long-term debt, through either a direct loan or through the public market, using the debt instruments described below. 15 Example – Long-Term Debt (Revenue Bond)
SDCP Additional Bond Tests
1. Green bonds earmarked to raise money for climate and environmental projects.
2. Pledged revenues will be no less than one and a half times (1.5x) the maximum annual principal and interest
and debt service for the aggregate outstanding senior
lien bonds including the debt service for the new
issuance.
3. Annual debt service on long-term debt shall not exceed 5% of the Agency’s annual total expenses.
Example (Revenue Bond):
SDCP issues a $500 million
revenue bond to construct a
solar and storage project.
Loan amount: $500,000,000
Interest Rate: 5.00%
Pledged revenues: Ratepayer revenue
Repayment Term/Useful life: 20 years
Example For Illustration Purposes Only
16 Example – Long-Term Debt (Revenue Bond)
Net Revenue
$1,284 m
FY 2024
Projected
Total Expense
$974 m
Net Position
$310 m
1. Green Bonds
Solar/storage project.
Bond Test Passed
2. Pledged Revenues
FY24 Revenue = $1,284m
Aggregate Debt Service= $802m
Calculation
1.5 x $802m = $1,204m
$1,284m > $1,204m
Bond Test Passed
3. Annual Debt Service
FY24 Expense = $974m
Yearly Debt Service = $40.1m
Calculation
$974m x 5% = $48.7m
$48.7m > $40.1m
Bond Test Passed
Example For Illustration Purposes Only
Debt Service Schedule SDCP Bond Tests
Public
Comment
for Item 10
18 Item 10
Recommendation: Approval of the Debt Policy
19 Item 11
Receive Quarterly Report from the Community
Advisory Committee
Recommendation:
Receive and file the quarterly report from the San Diego Community Power Community Advisory Committee.
Presenter:
Eddie Price, Community Advisory Committee Chair
20 Background
• SDCP’s JPA states that the:
“primary purpose of the [CAC] shall be to
advise the Board of Directors and provide
for a venue for ongoing citizen support
and engagement in the strategic direction,
goals, and programs of [SDCP].”
• At the direction of the Chair of the Board,
the CAC, via staff, shall provide quarterly
updates during regular meetings of the
Board. The last update was provided on
February 23, 2023.
21 Key CAC Activities: Q1 2023
• Topics covered at the CAC Meetings:
• Receiving updates and providing feedback on the development of the Community Power Plan.
• Receiving updates and providing feedback on the Regional Energy Network (REN) process.
• Reviewing and providing input on SDCP’s Sponsorship Policy. • Receiving updates on Phase 4 Enrollment for National City and the unincorporated areas of San Diego County.
• Nominating Matthew Vasilakis (City of San Diego) and Gary L. Jahns (Encinitas) to participate on the Community Clean Energy Innovation Grants evaluation committee. • Reviewing and providing recommendations on the Fiscal Year 2022-2023 Community Advisory Committee Work Plan.
22 Key CAC Activities: Q1 2023
• The CAC met on Feb. 10 and March 10. The March meeting was the first post-Covid in-person meeting.
• Staff (including CEO Karin Burns) met with the CAC Chair and Vice-Chair regularly.
• CAC Members supported staff outreach efforts by volunteering at outreach events and writing op-eds for local publications. • Vice Chair Aida Casteñeda and Peter Anderson (San Diego County)
Public
Comment
for Item 11
24 Item 11
Recommendation:
Receive and File Quarterly Report for the Community
Advisory Committee
25 Item 12
Approval of Community Advisory Committee
(CAC) Appointment for County of San Diego.
Recommendation: Approve the Community Advisory
Committee (CAC) Appointment for County of San Diego.
Presenter:
Victoria Abrenica,
Public Outreach Associate
26 Background
Section 5.10.3 of the SDCP Joint Powers
Authority (JPA) Agreement:
“Each Party may nominate a committee
member(s) and the Board shall determine the
final section of committee members, who should
represent a diverse cross-section of interests,
skills sets and geographic regions.”
At the December 2021 Board Meeting, the
makeup of the CAC was updated to fourteen (14)
primary members, with two from each member
agency.
27 Analysis & Discussion
• County of San Diego application open period:
Released in September 2022
Open until filled
• Qualifications were based on residence or work impact • A total of 8 applications were received for County of San Diego 7 applicants qualified for the County of San Diego
• Members will serve a limit of two, three-year staggered terms Breakdown of seat terms found in Attachment A:
CAC Roster and Seat Assignments
28 Recommendation:
Approve the Community Advisory Committee (CAC) appointment for County of San Diego:
Member Agency Name Seat Term Ends
County of San Diego Lea Nepomuceno 12 2023
Item 12
Public
Comment
for Item 12
30 Recommendation:
Approve the Community Advisory Committee (CAC) appointment for County of San Diego:
Member Agency Name Seat Term Ends
County of San Diego Lea Nepomuceno 12 2023
Item 12
31 Item 13
Approve Market Offer Confirmation Letter for Purchase of Long-Term Market Offer RPS Energy from PG&E and
authorize CEO to execute the agreement
Recommendation: Approve and authorize CEO to enter
into Renewables Portfolio Standard Energy Market Offer
Confirmation Letter for purchase of long-term renewable energy from PG&E
Presenter:
Byron Vosburg
Managing Director, Power Services
32 Item 13: PG&E Market Offer Contract
Background:
VAMO = Voluntary Allocation + Market Offer
Voluntary Allocation (VA):
PCIA eligible LSEs offered voluntary allocation of their IOUs Long-term portfolios Market Offer (MO):
Long-term Market Offer of remaining PCIA eligible RPS volumes • CPUC directed
• Overseen by independent evaluators
• Bidding conducted by all 3 IOUs simultaneously
33 Item 13: PG&E Market Offer Contract
Background:
March 2023: PG&E Issued Long-term Market Offer Solicitation • Pricing structure: Index-plus REC price bids
• Term: 2023-2043
“Product C” portfolio: In-state, bundled renewable energy • Wind
• Solar
• Solar thermal
• Biomass
• Landfill
• Geothermal
• Small hydro
April 2023:
• SDCP bids submitted
• SDCP bid awarded by PG&E
Q2-Q3 2023: PG&E submits agreement for CPUC approval
34 Item 13: PG&E Market Offer Contract
Contract Summary:
• Start Date: Upon approval by CPUC (expected in Q3 2023) • End Date: Expiration of PG&E’s relevant PCIA-eligible renewable energy supply contracts (expected in 2043)
• Structure: Index plus fixed-price renewable premium
• Price: Confidential
• Portfolio Slice “Election” Quantity: Confidential while PG&E completes MO solicitation process • Estimated Annual Generation: Confidential. Varies by year, subject to intermittent resource generation, and declining over time as PG&E’s relevant PCIA-eligible renewable energy contracts expire
Public
Comment
for Item 13
36 Item 13
Recommendation: Approve and authorize CEO to enter
into Renewables Portfolio Standard Energy Market Offer
Confirmation Letter for purchase of long-term renewable energy from PG&E
Report by
Chief
Executive
Officer
38 Community Outreach
• South Bay Earth Day – 4/15
• Biocom Earth Day Panel – 4/20
39 Community Outreach
• La Mesa Earth Day – 4/22
• Fallbrook Avocado Festival – 4/23
40 Speaking Engagements
• Uncaged Podcast – 4/11
• League of Women Voters – 4/25
•
41 Strategic Planning
Report by
General
Counsel
Director
Comments
Adjournment
Next Regular
Board of Directors Meeting
May 25, 2023
Board of
Directors
Special Meeting
Closed Session
April 27, 2023
47 Special
Meeting
Agenda
Call to Order
Roll Call
PUBLIC COMMENTS ON CLOSED SESSION ITEMS
CLOSED SESSION
1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION PURSUANT
TO GOVERNMENT CODE SECTION 54957
Title: Chief Executive Officer
1. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO
GOVERNMENT CODE SECTION 54957.6
Agency designated representative(s): Ryan Baron, General Counsel Unrepresented employee: Chief Executive Officer
REPORT FROM CLOSED SESSION
ADJOURNMENT
Public
Comment
on Closed
Session
Item
49 Closed
Session
Agenda
1. PUBLIC EMPLOYEE PERFORMANCE
EVALUATION PURSUANT TO GOVERNMENT
CODE SECTION 54957
Title: Chief Executive Officer
2. CONFERENCE WITH LABOR NEGOTIATORS
PURSUANT TO GOVERNMENT CODE
SECTION 54957.6
Agency designated representative(s): Ryan
Baron, General Counsel Unrepresented
employee: Chief Executive Officer
50 Special
Meeting
Agenda
Roll Call
Report from Closed Session
Adjournment