Board of
Directors
Regular Meeting
May 25, 2023
Welcome
&
Call to
Order
Roll
Call
4 Welcome!
We are glad you’re here!
Xiomalys (see-oh)
Crespo
Community
Engagement
Manager
Items to
be Added,
Withdrawn
or
Reordered
on the
Agenda
Public
Comment
for Items
NOT
on the
Agenda
8 Consent
Agenda
1. Approval of November 17, 2022, December 6, 2022, December 15, 2022, January 18, 2023, January 23, 2023 Meeting Minutes
2. Receive and File Treasurer’s Report for Period Ending March 31, 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. Receive and File Update on Community Advisory Committee
9. Approval of Fourth Amendment to Professional Services Agreement with Neyenesch Printers for up to $1,228,218 for Printing Services through June of Fiscal Year 2025
10. Approval of First Amendment to the Professional Services Agreement with Full Moon Strategies for up to $600,000 for Government Affairs Services through May 30, 2028
11. Approval of Third Amendment to the Professional Services Agreement with Futura Energy Group, LLC for up to $520,000 for recruiting services through March 31, 2024
12. Approval of Updated Voting Shares
Public
Comment
for
Consent
Agenda
10 Regular
Meeting
Agenda
13. Approval of the Community Power Plan (CPP)
14. Update on Pilot Programs
15. Presentation on the FY 2023-24 Operating Budget
16. Approval of the SDCP Investment Policy
17. Approval of the Interim Compliance Plan for the
California Energy Commission’s (CEC) Load
Management Standards
18. Approval of the Long-Term Market Offer Sales
Confirmation for Purchase of Long-Term, Bundled
RPS Energy from SDG&E and authorize CEO to
execute the agreement
11 Item 13
Approval of the Community Power Plan (CPP)
Recommendation:
Approve the Community Power Plan
Presenter:
Colin Santulli, Director of Programs
Nelson Lomeli, Program Manager
12 Timeline
Q3 & Q4 2022
Engage
with community
members
Survey
community to
determine
most prioritized
issues
Report back to
the community
on findings
Assess
programs and
develop
program
prioritization
framework
Release
Community
Power Plan for
public review &
comment
Board
considers
approval of
Community
Power Plan
Listening Sessions
Co-hosted with
community-based
organizations
Interest groups
General public
Businesses
Community-wide Survey
Community
priorities and
program
interest
Reporting
results of
survey &
listening
sessions
Database of
possible
programs
Ranked list of
programs
that meet
needs
Public Draft of
Community Power Plan
Q3 2022 Q4 2022 Q1 2023 Q2 2023
Approval of the
Community Power Plan
14 Community Power Plan
15 Community Power Plan
16 Community Power Plan
Short-term Program Types (FY 23/24 – FY 24/25)
Energy Awareness and Education
Application Assistance
Disadvantaged Communities Green Tariff and
Community Solar Green Tariff
Pilot Programs
Grant Programs
Mid-term Program Types (FY 25/26 – FY 26/27)
Building Electrification: Appliances
Building Electrification: Heat Pump Technologies
Distributed Energy Resources: Energy Storage
Systems
Distributed Energy Resources: Demand
Response & Load Modification
Energy Efficiency
Transportation Electrification: Infrastructure
Transportation Electrification: Light-Duty Vehicles
Transportation Electrification: Medium- and
Heavy-Duty Vehicles
17 Next Steps
• The CAC unanimously recommended to the Board of Directors adoption/approval of the Community Power Plan at their May 11, 2023 meeting
• Pending adoption, the final Community Power Plan will be uploaded to SDCP’s website (in English, Spanish, and Tagalog) along with a survey data portal • The Community Power Plan, as a strategic document, will guide SDCP in the selection and development of program offerings going forward
• The Community Power Plan is expected to be updated in five years to ensure SDCP programmatic activity continues to align with community needs and priorities and organizational goals
Public
Comment
for Item 13
19 Item 13
Recommendation:
Approve the Community Power Plan
20 Item 14
Update on Pilot Programs
Recommendation:
Receive and File the Pilot Programs Update
Presenter:
Colin Santulli, Director of Programs
21 Pilot Programs
Description & Benefits
• 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
Design & Funding Considerations
• 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
22 1) Building Electrification
• Appliances
• Heat Pump Technology
2) Distributed Energy Resources
• Energy Storage Systems
• Demand Response
• Load Modification
3) Energy Efficiency
4) Transportation Electrification
• Infrastructure
• Light-Duty Vehicles
• Medium- and Heavy-Duty
Vehicles
General Categories for Potential Pilot Programs
23 Emergency Water Heater Loaner Program
Market Barrier/Gap Filled
• Most water heaters are only replaced when
they fail
• Scheduling electricians/contractors and
receiving permits can take weeks—not
feasible to go that long without hot water
• Allows residents to restore hot water while
enabling fuel-switching
• Gives the resident more time to complete
the upgrades to install a Heat Pump Water
Heater (HPWH)
Concept Overview
• Provide a loaner gas water heater to be
installed in “emergency” situations when a
water heater fails
• In the meantime, electrical upgrades/permit
work can be completed to support a
“permanent” HPWH
• Loaner gas water heater is uninstalled (and
reused) when HPWH is installed
24 120V Induction Stove Incentive
Market Barrier/Gap Filled
• Electric induction stoves require
220/240V outlets
• May require increased electrical capacity,
new electrical line, and/or panel upgrade
• Lack of incentives/funds for panel upgrades
at existing homes
Concept Overview
• Test out a 120V full range, 4-“burner”
induction stove to determine:
o If it provides the same performance of a
220/240V stove while only using a
standard 120V outlet
o If it is more cost-effective to install
compared to panel/electrical upgrades
required for a 220/240V stove
• 120V induction stoves also include a built-in
battery which may allow them to be used for
demand response
25 Disadvantaged Communities–Single-Family
Affordable Solar Homes (DAC-SASH) Roof Repair
Market Barrier/Gap Filled
• Participation in State-funded rooftop solar
incentive programs requires a roof in good
condition
• State programs, like DAC-SASH, don’t
allow for funds to be used for roof repairs
• ~50% of potential DAC-SASH participants
can’t participate based on roof or panel
incompatibility
Concept Overview
• Fund roof repairs for homes otherwise able
to participate in DAC-SASH to allow more
State funding to flow into San Diego
neighborhoods
26 Smart Thermostat Incentive
Market Barrier/Gap Filled
• No current offering of a free smart
thermostat for customers not enrolled in
California Alternate Rates for Energy
Program (CARE)/Family Electric Rate
Assistance Program (FERA) programs
Concept Overview
• Provide a smart thermostat to customers in
Communities of Concern not enrolled in
CARE/FERA programs
o Customers enrolled in CARE/FERA
programs are eligible for a free device
through SDG&E
• Provide technical assistance and enroll
customers in OhmConnect
27 Energy Kits for Kids
Market Barrier/Gap Filled
• No current offering of energy literacy
program directed towards K-12 students
and their families
Concept Overview
• Offer “kits” to elementary school students
with energy efficiency items to take home
and install with an adult
• Can help families save money and energy
• Can include incentive to participate (e.g., if
a certain % of students participate,
classroom can earn $1,000 incentive to use
at their discretion)
28 ENERGY STAR Refrigerator/Freezer Swap Out
Market Barrier/Gap Filled
• Small commercial customers are
consistently hard to reach for energy
program participation and engagement
• California Department of Food and
Agriculture (CDFA) currently has a grant
available for small businesses to get free
refrigerators/freezers but there has been
limited participation to date
• SDG&E closed their small commercial
program
• Statewide third-party program offers
rebates at point of sale ($50-100/unit)
Concept Overview
• Apply for CDFA grant on behalf of
customers and facilitate the equipment
upgrade
• Provide energy efficient
refrigerators/freezers to corner stores in
Communities of Concern and encourage
them to stock stores with healthier food
options
29 Managed Electric Vehicle (EV) Charging
Market Barrier/Gap Filled
• Many customers plug in their EV after work
during super on peak times that are more
expensive and dirtier than off peak
Concept Overview
• Provide upfront and monthly incentives to
customers for charging their EVs during
“low-carbon” events when power is cleaner
and/or more affordable
• Customers can download an app, enter
their utility account information, and connect
their EV or charger using existing
manufacturer login details
30 • Budget request included in FY 23-24 budget to implement pilot programs • Staff will develop a decision-making rubric to inform objective selection of pilot program concepts for implementation
• Staff will work with the CAC Programs Ad-Hoc committee on pilot programs and bring back updates to the Board and CAC at future meetings
• Development of pilot programs will be staggered throughout the fiscal year Next Steps
Public
Comment
for Item 14
32 Item 14
Recommendation:
Receive and File the Pilot Programs Update
33 Item 15
Presentation and Discussion of the FY 2023-24
Operating Budget
Recommendation:
Presentation on the FY 2023-24 Operating Budget
Presenter:
Dr. Eric Washington, Chief Financial Officer
34 Budget Principles for FY 2023-24
• Maintain a fiscally responsible and sustainable
budget.
• Ensure sufficient funding to continue to grow
and deliver the level of service needed for the
public.
• Build SDCP reserves and develop policies that
consider future economic conditions.
• Provide an easier to understand and user-friendly operating budget for both internal and external users.
• Engage the SDCP Board, constituent groups,
and the public in the budget process and inform
them about sustainable energy needs.
• Keep the SDCP Board of Directors and Executive
Team informed on the fiscal condition of SDCP.
• Develop a budget that will ultimately prioritize
people, transparency, and our communities.
35 • First full fiscal year of full enrollment
from Phase 1, 2, 3 and 4.
• Thoughtfully scale the agency by adding
23 staff to grow to 59 total staff.
• Continued outreach through community
events, sponsorships and advertising
to inform customers about SDCP.
• Addition of Capital Investment Plan
(CIP) to shift programs and projects over
multi-year periods.
Budget - Highlights
Budget Development for FY 2023-24
The Board adopted schedule for budget development is
the following.
Develop Operating
Revenue Estimate
Develop Operating
Expense Estimate
Develop financial
plan for credit rating
in 3-years
February March-April
Strategic planning
sessions with SDCP
Board
Staff develop
operating budgets
Baseline budget is
developed
May
Financial and Risk
Management
Committee Review
SDCP Board
Preview (Information
Item)
June
SDCP Board Approval July 1st Budget
Implemented
Mid-year budget
review (February)
Budget amendments
as necessary
37 75%
Cost of
Energy
FY24 Cost of Energy /
Net Revenue
Budget – Summary
Item FY 23 Amended
Budget, $M
FY 24 Proposed
Budget, $M
Gross Revenue 939.2 1,346.3
Less Uncollectible Accounts (9.4) (53.9)
Net Revenue 929.8 1,292.4
Cost of Energy 738.8 971.6
Non-Energy Costs 32.0 47.1
Subtotal Operating Expense 770.8 1,018.7
Debt Service 1.3 2.4
Capital Investment Program 0.0 4.2
Total Expense 772.1 1,025.3
Net Position 157.7 267.1
Cumulative Net Position 200.2 467.3
Days Cash on Hand 94.8 167.4
38 FY 2024-28 Capital Investment Plan (CIP)
Planning
Document
Community
Power Plan
Short-Term
Program
Types
Leverage
Funds
Helps Community
Anticipate Needs
Distributed
Resource
Planning
39 Budget 5-Year CIP
Program, $000 FY24 FY25 FY26 FY27 FY28 Total
(Proposed)
CPUC Green Tariffs 335.23 212.50 212.50 212.50 212.50 1,062.50 Member Agency Grants 380.00 380.00 380.00 380.00 380.00 1,900.00 Building Electrification Education 0.01 0.01 0.01 0.01 0.01 0.05 Customer Education 350.00 350.00 350.00 350.00 350.00 1,750.00 Building and Housing Stock 250.00 250.00 250.00 250.00 250.00 1,250.00 Community Grants 500.00 500.00 500.00 500.00 500.00 2,500.00 PUC Energy Efficiency Program 250.00 250.00 250.00 250.00 250.00 1,250.00 Customer Program Pilots 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 10,000.00 Local Dev. Feasibility Studies 100.00 100.00 100.00 100.00 100.00 500.00 Total 4,175.2 4,042.5 4,042.5 4,042.5 4,042.5 20,122.55 FY 2024-28 Capital Investment Plan (CIP)
FY 2024-28 CIP:
First year is appropriated in the budget process
Years two through five are planned and not
appropriated
Projects and Programs are considered multi-year
efforts
Funds appropriated in the budget will be in a continuing fund to be available in subsequent budget years
40 Item FY 24 Proposed Budget,
$M
FY 23 Amended,
$M
Gross Revenue 1,346.3 939.2
Net Revenue 1,292.4 929.8
Subtotal Operating Expense 1,018.7 770.8
Total Expense 1,025.3 772.1
Net Position 267.1 157.7
Days Cash on Hand 167.4
Budget – Reserves
SDCP will allocate up to 15% of gross
revenue annually toward building an
Operating/Working Capital Reserve
equivalent to 90 days of total operating
expenses held as unrestricted cash.
90-Day Total Reserve Goal
Goal
Goal
(90-Days)
$201.9 m FY22
$56.6 m
FY23
$157.7 m
Total
(212.7 days cash on hand w/ LOC)
$467.3 m
FY 24
$267.1 m
FY 21/22
($14.1 m)
FY24 Reserves
Year-end
41 Proposed FY 2023-24 Budget
Budget Changes by Category
Revenue
Cost of Energy
Phase 1-4 enrollment for entire FY24
included, Board approved rate change on 1/23/23.
Increased energy load with full Phase 1- 4 enrollment. All forward energy prices updated.
FY24
$1,292.4m
FY24
$971.6m
Professional
Services
Personnel
Marketing and
Outreach
General and
Administrative
FY23
$929.8m
FY23
$738.8m
Calpine and SDG&E fees higher with
increased enrollment.
FY24
$22.9m
FY23
$17.3m
Recruitment strategy of 23 new staff
growing the agency to 59 total staff.
FY24
$13.4m
FY23
$7.4m
Reduction primarily due to lower printing
costs related to mandatory enrollment
mailers.
FY24
$3.0m
FY23
$4.2m
Increased G&A budget to support
operating and staff growth anticipated for
FY24.
FY24
$7.5m
FY23
$1.9m
Programs Programs budgeted included in CIP as
continuing projects. Overall admin in
operating.
FY24
$0.3m
FY23
$1.3m
42 56.6
157.7
267.1 92.4 124.1
0 200
400
600
800
1,000
1,200
1,400
1,600
FY22 FY23 FY24 FY25 FY26
90-Day Threshold
Jun 2023
$M
Operating Budget, $M FY22 FY23 FY24 FY25 FY26
Net Revenue 383.8 929.8 1,292.4 1,189.5 1,232.1
Total Expense 327.2 772.1 1,025.3 1,106.6 1,105.9
Annual Reserve (Net Income) 56.6 157.7 267.1 92.4 124.1 Reserves (Cumulative Net Surplus) 42.5 200.2 467.3 559.7 683.8 90-Day Expense Target 81.8 193.0 256.3 276.7 276.5
180-Day Expense 163.6 386.1 512.7 553.3 553.0
180-Day Threshold
Aug 2024
Updated ProForma Projections
43 Budget Context – Reserve Comparison
CCCE
S&P (‘A’ Issuer Credit
Rating)
MBCP minimum target is 30% of total,
with a goal of 50% of total operating
budget expenditures. The max reserve
is 75% of total op. budget expenditures.
180 days
Of Operating
Expense
$209.1m
Based on FY23
Operating Expense
CPA
Non-Investment Grade
Credit Rating
CPA minimum reserve target equal to
30%, with a maximum reserve target of
50% of total op. budget expenditures.
Reserves shall not exceed 60%.
180 days
Of Operating
Expense
$457.8m
Based on FY23
Operating Expense
MCE
Fitch (BBB+/Stable)
MCE’s goal of securing 240 days
liquidity on hand (includes lines of
credit).
240 days
Of Operating
Expense
$463.0m
Based on FY24
Operating Expense
PCE
Fitch (BBB+/Stable)
PCE’s goal of securing one hundred
eighty (180) days of total operating
expenses.
180 days
Of Operating
Expense
$150.6m
Based on FY24
Operating Expense
SDCP
Non-Investment Grade
Credit Rating
SDCP will allocate up to 15% of gross
revenue annually toward building an
Operating/Working Capital Reserve
equivalent to 90 days of total operating
expenses.
90 days
Of Operating
Expense
$256.3m
Based on FY24
Proposed Expense
Contingencies • Power supply shocks
• Maintain rate competition
• economic downturns
Reserves help with:
Cash Availability
• Used to bridge temporary low
levels of cash
Interest • Avoids interest expense with
borrowing debt
Credit Rating • Favorable terms with vendors
• Helps with issuing debt
(bonds, commercial paper…)
44 Budget – Personnel
Department
SDCP
(Existing/
Proposed)
Marin Clean
Energy
Clean Power
Alliance
East Bay
Community
Energy
Peninsula
Clean Energy
Central Coast
Com. Energy
Existing SDCP Staff 36 - - - - -
Data Analytics and
Account Services 6 16 12 11 8 7
Executive Team - 5 6 2 3 8
Finance 3 4 9 3 2 3
Human Resources 1 5 3 3 6 6
Operations 1 6 1 4 7 3
Power Services 4 7 15 8 7 4
Programs 1 16 4 7 8 2
Regulatory and
Legislative 3 10 11 8 8 2
Public Affairs 4 16 5 8 3 7
Total 59 85 66 54 41 35
45 Budget – CCA Comparison
Community Choice
Aggregator
Years Est.
(JPA eff.
Date)
Customer
Accounts*
Cost of
Energy, $M**
Non-Energy
Costs, $M
Net
Ratepayer
Revenue, $M
Energy
Costs/Net
Revenue (%)
Clean Power Alliance Jun 2017 1,005,000 1,245.00 56.00 1,583.00 79% San Diego Community
Power Oct 2019 897,445 971.61 54.06 1,292.47 75%
East Bay Community Energy Dec 2016 635,000 684.00 94.00 935.00 73% Marin Clean Energy Dec 2008 580,000 666.00 40.00 800.00 83% Central Coast Community
Energy Mar 2018 430,000 378.00 40.00 429.00 88%
Peninsula Clean Energy Feb 2016 310,919 311.00 39.00 350.00 88% *Customer accounts citations: CPA: May 2023 Board Meeting Agenda, EBCE: Press Release 11/17/22, MCE: Website “FAQ” What is MCE?, 3CE: Website “About 3CE”, PCE: Board Meeting April 2023. **Cost of energy, non-energy costs and ratepayer revenue are from FY24 drafted budgets. 3CE FY23 adopted budget. SDCP from proposed FY24 budget. ***SDCP includes CIP and debt service costs whereas most other CCAs do have minimal or zero debt service costs.
Public
Comment
for Item 15
47 Item 15
Recommendation:
Presentation on the FY 2023-24 Operating Budget
48 Item 16
Approval of SDCP Investment Policy
Recommendation:
Approval of SDCP Investment Policy
Presenter:
Dr. Eric Washington, Chief Financial Officer
49 Development of Investment Policy
Investment Policy
Peer CCAs
Member
Agencies
Reporting
Financial
Best
Practices
Investment
Objectives
Investment
Types
Prohibited
Investments
Controls
50 Investment Objectives (Safety, Liquidity, Return,
Standard of Care)
Safety
Ensure the preservation of
principal.
Liquidity
Remain sufficiently liquid to
meet operating needs.
Return
Portfolio shall be designed to
attain a market rate of return.
Care
SDCP will manage investments
accordance with the “Prudent
Investor Standard”.
SDCP will manage investments pursuant to California Government Code 53600.3
51 Acceptable Investment Types
Deposits at Banks
Local Agency Investment Fund (LAIF)
US Treasury Obligations
Federal Agency Securities
Bankers’ Acceptances
Negotiable Certificates of Deposit
Placement Service Deposits
Money Market Funds
Commercial Paper
All Authorized investment types for SDCP are pursuant to California Government Code 53601. 52 Acceptable Investment Types
All Authorized investment types for SDCP are pursuant to California Government Code 53601.
Acceptable Investment Types Maximum Maturity Maximum % of Portfolio Maximum % with One Issuer Minimum Rating Gov. Code SDCP Policy Gov. Code SDCP Policy Gov. Code SDCP Policy Gov. Code SDCP Policy Bankers' Acceptances 180 Days 180 Days 40% 40% 30% 5% None A-1 Local Agency Investment Fund N/A N/A None None None None None None US Treasury Obligations 5 Years 5 Years None None None None None None Federal Agency Securities 30 Years 30 Years 25% 25% None None None None Deposits at Banks 2 Years 2 Years 10% 10% None None A A Negotiable Certificate of Deposit 2 Years 2 Years 10% 10% None None None None Placement Service Deposits 2 Years 2 Years 10% 10% None None A A Money Market Funds N/A N/A 20% 20% 10% 10% AAAm AAAm
Commercial Paper 270 Days 270 Days 40% 40% 10% 10% A-1 A-1 53 Prohibited Investment Types
Pursuant to Section 53601.6, SDCP shall not invest Funds in any security that could result in a zero-interest accrual, or less, if held to maturity. These prohibited investments include, but are not limited to:
ₓ Inverse Floaters
ₓ Range Notes
ₓ Mortgage-derived Interest-only Strips
In addition SDCP will prohibit the following investment types:
ₓ Foreign Currency
ₓ Crypto Asset Securities
ₓ Trading securities for the sole purpose of speculating on the future direction of interest rates.
ₓ Purchasing or selling securities on margin.
54 Internal Controls and Reporting
Annual Policy Review
Annual Audits
Reporting
Annually
Quarterly
Monthly
Control of Collusion
Clear Delegation of Authority to Subordinate Staff Members Delivery-Versus-Payment (DVP)
Safekeeping and Custody
Avoidance of Physical Delivered Bearer Securities
Written Confirmation of Telephone Wire Transfers
Custodian
= SDCP imposed controls
The Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. Accordingly, the Treasurer shall establish and maintain internal controls that shall address the following points:
The internal control structure shall be
designed to provide reasonable
assurance that these objectives are met.
The concept of reasonable assurance
recognizes that:
1. The cost of a control should not
exceed the benefits likely to be
derived; and
2. The valuation of costs and benefits
requires estimates and judgments by
management.
Public
Comment
for Item 16
56 Item 16
Recommendation:
Approval of SDCP Investment Policy
57 Item 17
Approval of the Interim Compliance Plan for the
California Energy Commission’s (CEC) Load
Management Standards
Recommendation:
Approve the Interim Compliance Plan for the California
Energy Commission’s Load Management Standards
Presenter:
Stephen Gunther, Senior Regulatory Analyst
58 Background
Requirements:
• Develop retail electricity rates that change at
least hourly to reflect grid costs and
greenhouse gas emissions
• Maintain up-to-date rates in a database called
the Market Informed Demand Automation
Server (“MIDAS”)
• Educate customers about time-dependent
rates and automation technologies
The California Energy Commission (CEC) adopted updates to the state’s Load Management Standards (LMS) on October 12, 2022
Prior to adoption SDCP raised concerns over jurisdiction and implementation barriers CEC Staff Workshop Presentation, April 12, 2021
59 Timeline & Working Groups
Beginning in November 2022, CEC staff convened a Working Group to develop functional requirements for MIDAS and the format for Rate Identification Numbers (RIN) To date, there have been seven Working Group meetings and SDCP staff have been active participants 60 Implementation Concerns
Requirements for RINs and MIDAS protocols are not
finalized
Critical implementation questions include:
• How to address unbundled vs. bundled rates
• What rate modifiers be included and how?
• What rate data granularity should be used?
Application programming interface requirements must be
finalized with current documentation.
• SDCP is unable to cost effectively develop
automated systems while the system is in active
development
• Manual upload of rates would be a time and
labor-intensive process
Uploading all existing time-dependent rates to the MIDAS system by July 1, 2023, is not
cost effective or technologically
feasible prior to the CEC
addressing these issues
61 Coordination with CEC and Request for
Extension
• SDCP staff has coordinated with CalCCA to inform
discussions with CEC staff and Commissioner McAllister
• SDCP joined in a request for extension of MIDAS upload requirement submitted by the three investor-owned utilities and the thirteen “Large CCAs” subject to the LMS
requirements on April 28, 2023
• CEC filed a Proposed Order in response to the
extension request on May 19, 2023
• The Proposed Order is scheduled to be voted on at the May 31, 2023, CEC business meeting
62 Interim Compliance Plan
• California Code of Regulations, Title 20, Section 1623.1(a)(2) authorizes CCA Boards to delay or modify compliance with LMS requirements if “despite a Large POU’s or Large CCA’s good faith efforts to comply, requiring timely compliance with the requirements of this article would result in extreme hardship to the […] CCA,” or would not be “technologically feasible or cost effective.”
• LMS requires approval of a compliance plan for delay by a CCA governing board prior to submission of that plan to the CEC’s Executive Director by April 1, 2024 • SDCP staff recommends the Board approve an Interim Compliance Plan that would extend the July 1, 2023, deadline for uploading rates into MIDAS, if necessary Public
Comment
for Item 17
64 Item 17
Recommendation:
Approve the Interim Compliance Plan for the California
Energy Commission’s Load Management Standards
65 Item 18
Approval of Long-Term Market Offer Sales Confirmation
for Purchase of Long-Term, Bundled RPS Energy from
SDG&E and authorize CEO to execute the agreement
Recommendation:
Approve and authorize CEO to enter into Long-Term Market Offer Sales Confirmation for purchase of long-term, bundled renewable energy from SDG&E
Presenter:
Byron Vosburg, Managing Director, Power Services
66 Item 18
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
67 Item 18
“Long-term” portfolio: Category 1, bundled renewable energy • Wind
• Solar PV
March 2023: SDG&E Issued Long-term Market Offer Solicitation • Pricing structure: Index-plus REC price bids
• Term: 2023-2040
April 2023:
• SDCP bids submitted
May 2023:
• SDCP bid short-listed by SDG&E
• SDCP awarded bid by SDG&E
Q2-Q3 2023: SDG&E submits agreement for CPUC approval
68 Item 18
Contract Summary:
• Start Date: Upon approval by CPUC (expected in Q3-Q4 2023) • End Date: Expiration of SDG&E’s relevant PCIA-eligible renewable energy supply contracts (expected in 2040)
• Structure: Index plus fixed-price renewable premium
• Price: Confidential
• Portfolio Slice “Election” Quantity: Confidential while SDG&E completes MO solicitation process
• Estimated Annual Generation: Confidential. Varies by year, subject to intermittent resource generation, and declining over time as SDG&E’s relevant PCIA-eligible renewable energy contracts expire
Public
Comment
for Item 18
70 Item 18
Recommendation:
Approve and authorize CEO to enter into Long-Term Market Offer Sales Confirmation for purchase of long-term, bundled renewable energy from SDG&E
Report by
Chief
Executive
Officer
72 CalCCA Conference
May 17 – 19
73 Japanese Delegation
May 23
74 Outreach & Engagement
Spring Valley Day, April 29
North Park Music Fest, May 27
Report by
General
Counsel
Director
Comments
Adjournment
Next Regular
Board of Directors Meeting
June 22, 2023
Board of
Directors
Special Meeting
Closed Session
May 25, 2023
80 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
82 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
83 Special
Meeting
Agenda
Roll Call
Report from Closed Session
Adjournment