Board of
Directors
Regular Meeting
July 27, 2023
Welcome
&
Call to
Order
Roll
Call
4 Land
Acknowledgement
Renata Halls-Gordon
Temporary
Administrative
Assistant
Aisha Cissna
Senior Policy Manager
and
Eddie Price, Chair
Aida Castañeda, Vice-Chair
Anna Webb, Secretary
Outgoing CAC Officers
Lea Nepomuceno
FY 2023-2024
Community Advisory Committee Officers
~Welcome~
Matthew Vasilakis, Chair
David Harris, Vice-Chair
Lauren Cazares, Secretary
Items to
be Added,
Withdrawn
or
Reordered
on the
Agenda
Public
Comment
for Items
NOT
on the
Agenda
12 Consent
Agenda
1. Approval of April 21, 2023, April 27, 2023, May 25, 2023 and June 22, 2023 Meeting Minutes
2. Receive and File Treasurer’s Report for Period Ending May 31, 2023
3. Receive and File Update on Power Services
4. Receive and File Update on Human Resources
5. Receive and File Update on Customer Operations
6. Receive and File Update on Marketing and Public Relations
7. Receive and File Update on Community Advisory Committee
8. Approval of Second Amendment to Professional Services Agreement with Pisenti and Brinker for up to $80,400 for financial audit services in FY 2023-24
9. Approval of Amended and Restated Engagement Letter with Keyes and Fox LLP for up to $400,000 for Legal Services for Power Procurement.
10. Approval of Member Agency Grant Program Policy
Public
Comment
for
Consent
Agenda
14 Regular
Meeting
Agenda
11.Update on Regulatory and Legislative
Affairs
12.Approval of First Amendment to Data
Management Agreement with Calpine
Energy Solutions, LLC for up to $300,000
for Peak Load Reduction Pilot Services
13.Approval of the Language Access Policy
14.Approval of Default Service Change Policy
15.Update on Quarterly Report for Community
Advisory Committee
15 Item 11
Update on Legislative and Regulatory Affairs
Recommendation:
Receive and File the update on Regulatory and
Legislative Affairs and Presentation by Outside
Counsel, Keyes & Fox on SDG&E Regulatory Matters
Presenter:
Laura Fernandez, Director of Regulatory and Legislative Affairs Tim Lindl, Partner - Keyes & Fox
How SDG&E Ratemaking Impacts SDCP
Tim Lindl – Keyes & Fox LLP
July 27, 2023
Keyes & Fox LLP
● Founded in 2008 by Jason Keyes and Kevin Fox.
● 13 lawyers – have appeared before over 40 different state public utility commissions and the Federal Energy Regulatory Commission ● Renewable energy and public utility law is our only practice area (both transactional and regulatory)
● Substantial experience before the CPUC, including representation of SDCP and CalCCA
17 PCIA Overview
● Law requires remaining SDG&E customers to be left economically “indifferent” to SDCP’s customers leaving SDG&E’s service. ● The PCIA is the “exit fee” that is intended to ensure such indifference. 18 PCIA Overview
TOTAL COST
OF SDG&E
PORTFOLIO
MARKET
VALUE OF
SDG&E
PORTFOLIO
INDIFFERENCE
AMOUNT
(PCIA)
RPS ADDER
($/GWH) *
GWh
MARKET
VALUE OF
SDG&E
PORTFOLIO
ENERGY
INDEX
($/GWH) *
GWh
RA ADDER
($/MW) *
MW
19 Phase I: General Rate Case
TOTAL COST
OF SDG&E
PORTFOLIO
TOTAL COST
OF SDG&E vs PORTFOLIO
20 Phase II: General Rate Case
21 SDG&E Annual ERRA Forecast Applications:
Setting the PCIA in Two Parts
Example PCIA Revenue Requirement by Vintage
$000s
UOG Legacy 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Portfolio Costs - 417,862 77,589 199,188 63,567 5,020 1,139 1,833 - 12,360 42,422 13 (229) - - 820,765 Portfolio Market Value - 306,269 49,256 150,735 45,658 6,312 2,677 2,812 - 18,819 45,993 183 (229) - - 628,485 Total Forecasted Indifference - 111,592 28,334 48,453 17,909 (1,292) (1,538) (979) - (6,458) (3,571) (170) - - - 192,279 PABA True Up Balance - 88,939 30,388 (36,288) (40,402) 86,543 (2,410) (92,401) 89,339 (78,809) (21,020) 62,337 (99,089) 190,740 - 177,867 ERRA True Up Balance - - - - - - - - - - - - - - 319,739 319,739 Total Revenue Requirement $0 $200,531 $58,722 $12,165 ($22,493) $85,251 ($3,948) ($93,380) $89,339 ($85,267) ($24,591) $62,168 ($99,089) $190,740 $319,739 $689,885 22 23
THE Major Influencer: Gas Prices
Source: California Energy Markets, Issues 1723 and 1753 24 SDG&E’s PCIA Trends
25 Reviewing the PCIA:
SDG&E Annual ERRA
Compliance Applications
• SDG&E files an ERRA
Compliance application on
June 1 of each year
• Essentially making sure
SDG&E’s generation costs
were put in the right
accounting bucket to ensure
CCA customers have not
overpaid
26 Look forward to working with you.
Tim Lindl
[email protected]
510-314-8385
27 Public
Comment
for Item 11
29 Item 11
Recommendation:
Receive and File the update on Regulatory and
Legislative Affairs and Presentation by Outside
Counsel, Keyes & Fox on SDG&E Regulatory
Matters
30 Item 12
Approval of First Amendment to Data Management
Agreement with Calpine Energy Solutions, LLC for up to
$300,000 for Peak Load Reduction Pilot Services
Recommendation:
Approve the First Amendment to Data Management
Agreement with Calpine Energy Solutions, LLC for up to
$300,000 for Peak Load Reduction Pilot Services
Presenter:
Jack Clark, Chief Operating Officer
31 Peak Load Reduction Pilot Background
• Calpine Energy Services (Calpine) is an energy service and management company that provides comprehensive data management and back-office support
• Recurve Analytics (Recurve) is a technology company that provides energy management program technologies to utility clients o Recurve currently serves several of Calpine’s CCA customers 32 Peak Load Reduction Pilot Background
• Staff presented several pilot program concepts at the April 2023 Board Strategic Planning Session and May 2023 Community Advisory Committee and Board meetings
• SDCP’s Board of Directors approved the FY 2023-2024 budget at the June Board meeting, which included a multi-year $2M budget to implement pilot programs
• Staff presented a brief overview of the proposed Peak Load Reduction Pilot at the July 2023 Community Advisory Committee meeting 33 Peak Load Reduction Pilot Design
Goal
• Reduce load during peak hours during summer months (August/September) • Evaluate pilot design and scalability to larger future program Mechanism
• Identify projects and sites that have potential to deliver peak load reductions this summer • Primarily lighting/HVAC projects with commercial and industrial customers • Projects installed by end of August in anticipation of early September peak load • “Pay for Performance” model using the CPUC avoided cost curve – incentives vary by hour
• SDCP only paying for actual savings realized relative to a control group of buildings and pay more for the most ‘valuable’ reductions
34 Peak Load Reduction Pilot Design
Mechanism
• Leverage existing Demand FLEXMarket product used by dozens of utilities across the country
• Basis for CPUC’s $150M Market Access Program to address peak reliability issues in 2022 and 2023
*
35 Peak Load Reduction Pilot Design
Evaluation
• Total budget of $450K ($300K from SDCP, $150K from Calpine) • Upon project enrollment(s), estimated impacts will be calculated (e.g., kw, kWh, GHG)
• Initial evaluation report expected by December 2023; final report December 2024 • Inform future summer and year-round peak load reduction programs 36 Contract Amendment
• Per the SDCP Procurement Policy, SDCP is seeking a sole source agreement with Calpine to administer the proposed Pilot based on Calpine’s:
o Unique position with its existing SDCP contract that gives them secure access to confidential customer data needed for a pilot of this type to be successful o Unique ability to repurpose existing scope of work items and associated budget to financially support the proposed Pilot
o Existing relationship with Recurve and the FLEXMarket platform o Sites are currently being evaluated for immediate installations • Achieved through an amendment to existing Data Management Agreement o $300K SDCP obligation to fund the Pilot
o $150K in Calpine funding repurposed toward the Pilot
Public
Comment
for Item 12
38 Item 12
Recommendation:
Approve the First Amendment to Data Management
Agreement with Calpine Energy Solutions, LLC for up to
$300,000 for Peak Load Reduction Pilot Services
39 Item 13
Approval of the SDCP Language Access Policy
Recommendation:
Approve the SDCP Language Access Policy
Presenter:
Carly Newman, Senior Account Services Analyst
Lucas Utouh, Director of Data Analytics & Account Services 40 Language Access in the San Diego Region
• According to the most recent Census Bureau data:
• Nearly 40% of residents in San Diego County speak a language other than English at home
• More than 10% of residents in San Diego County speak English "less than very well"
• In order to make an informed decision about their electricity provider, our customers must be able to access SDCP materials and information in a format and language that they can understand 41 Language Access Policy
Purpose Background Policy
Establish procedures for
providing information
and services directly to
SDCP communities in a
way that makes them
accessible to our
customers, including
those who are not
proficient in the English
language.
Essential to the success
of SDCP’s mission and
vision to provide
meaningful and
equitable access to the
services, programs, and
activities offered by
SDCP to all customers,
regardless of their
primary language.
Set forth effective
guidelines for
meaningful and effective
language access
services as well as
procedures for providing
effective communication
between SDCP and the
communities we serve.
Public
Comment
for Item 13
43 Item 13
Recommendation:
Approve the SDCP Language Access Policy
44 Item 14
Approval of Default Service Change Policy
Recommendation:
Approve the Default Service Change Policy
Presenter:
Lucas Utouh, Director of Data Analytics & Account Services 45 Purpose of the Default Service Change Policy
To provide the framework for San Diego Community Power (SDCP) Board and Staff to evaluate and implement member agencies' change of their default service.
This policy allows SDCP to have a process in place to support member agencies' change of their default service from their original selections by adequately planning from an energy procurement, financial impact, communication and operational perspective.
46 Default Service Change Policy Objectives
SDCP’s Default Service Change policy objectives and highlights:
• Advance notice by a member agency to SDCP
• Customer communication
• Implementation period for a default service change
• Frequency of default service change by member
agencies
• Safeguard for customers prior opt actions
Public
Comment
for Item 14
48 Item 14
Recommendation:
Approve the Default Service Change Policy
49 Item 15
Recommendation:
Receive and File the Quarterly Report from the
Community Advisory Committee
Presenters:
Eddie Price, Community Advisory Committee Chair (Outgoing) Xiomalys Crespo, Community Engagement Manager
Quarterly Report from the Community Advisory
Committee
50 Community Advisory Committee (CAC) Quarterly Report
• At the direction of the Chair of the Board of Directors, the CAC shall provide quarterly updates during the regular meetings of the Board of Directors on a quarterly basis. This update summarizes April through June 2023.
• Newly-elected FY 2023-2024 Officers:
Matthew Vasilakis (City of San Diego), Chair
David Harris (La Mesa), Vice-Chair
Lauren Cazares (La Mesa), Secretary
• Vacancies: Imperial Beach and County of San Diego
• Key Discussion Topics: Community Power Plan, Legislative and Regulatory Updates, Pilot Programs, Green Tariffs, Sustainable and Equitable Workforce Policy • Programs Ad-Hoc Committee and Community & Equity Ad-Hoc Committee meeting monthly through January 2024.
Public
Comment
for Item 15
52 Item 15
Recommendation:
Receive and File the Quarterly Report from
the Community Advisory Committee
Report by
Chief
Executive
Officer
Office Space Search
Our Process:
• Hire 3rd party consultant for search
• Receive initial list
• Rank and narrow property list based on key criteria
• Review with Exec Team and Directors
• Shortlist top five
• Send out an RFP to short-listed properties to confirm / firm prices and specs • Site visits to top five
• Presentation, recommendation, and Board vote in Q3 2023 Examples of Key Criteria:
• Size
• Price
• Timing
• Walk Score
• Single Floor
• Nearby Amenities
• Green Building
• Green Space
• Transit Accessibility
• Sufficient Parking
55 We Are (still)
Hiring!
Director of Risk Management
Public Outreach Coordinator (2)
Programs Project Manager
Account Services Analyst
Local Govt Affairs Manager
Financial Analyst
Procurement Manager
Human Resources Coordinator
New Employee Onboarding:
Alyson Smith, Digital Media
Coordinator
Starts on August 1st !
Community Clean Energy
Innovation Grants
57 Report by
General
Counsel
Director
Comments
Adjournment
Next Regular
Board of Directors Meeting
August 24, 2023