Board of
Directors
Regular Meeting
October 26, 2023
Welcome
&
Call to
Order
Roll
Call
4 Land
Acknowledgement
Warm Welcome to our New Hires!
Ashley Rodriguez
Local Government
Affairs Manager
Christopher Stephens
Procurement Manager
Aaron Lu
Senior Rates and
Strategy Analyst
Timothy Treadwell
Senior Program
Manager
Items to
be Added,
Withdrawn
or
Reordered
on the
Agenda
Public
Comment
for Items
NOT
on the
Agenda
9 Consent
Agenda
1. Approval of September 28, 2023 Meeting Minutes
2. Receive and File Treasurer’s Report for Period Ending August 31, 2023
3. Receive and File Update on Programs
4. Receive and File Update on Power Services
5. Receive and File Update on Human Resources
6. Receive and File Update on Customer Operations
7. Receive and File Update on Marketing and Public Relations
8. Receive and File Update on Community Advisory Committee
9. Receive and File Update on Legislative and Regulatory Affairs
10. Approval of Ascend Analytics Pilot Extension Agreement for PowerSIMM Pilot Support Services for $50,000 through December 31, 2023
11. Approval of 10-year, 6MW Resource Adequacy Agreement with EnerSmart Alpine BESS LLC and authorize the CEO to execute the Agreement
12. Approval of SDCP New Alternate to the La Mesa Environmental Sustainability Commission
13. Approval of Amended and Restated Engagement Letter with Keyes and Fox LLP for up to $550,000 for Legal Services for Power Procurement through December 31, 2023
Public
Comment
for
Consent
Agenda
11 Regular
Meeting
Agenda
14.Update on Fiscal Year End 2023 Financial
Audit Progress Report
15.Update on Regional Energy Network (REN)
Progress
16.Approval of the Net Billing Tariff
17.Approval of Updates to the Existing Net
Energy Metering (NEM) Tariff
18.Update on Local Distributed Infill Plan
19.Approval of the NextEra Desert Sands
Standalone Storage Energy Storage Services
Agreement (ESSA)
20.Approval of the Pattern SunZia Power
Purchase Agreement (PPA)
12 Item 14
Fiscal Year End 2023 Financial Audit Progress
Report Presentation
Recommendation:
Receive and File Fiscal Year End 2023 Financial
Audit Progress Report Presentation
Presenter:
Dr. Eric Washington,
Chief Financial Officer
13 FYE 23 Audit Timeline
July
Board approves
contract extension
with Pisenti & Brinker
FYE 23 SDCP Audit
Engagement Begins
FRMC FYE 23 Audit
Update
Board FYE23 Audit
Update
FYE 23 Audit in
Progress
August September October November
FRMC receives full
FYE 23 Audit
Board receives full
FYE 23 Audit
San Diego Community Power
Report to the Board of Directors
October 26, 2023
Pisenti & Brinker LLP Introduction:
• Brett Bradford, CPA
• Audit Partner
• 20 years in public accounting and performing audits of government entities
• Currently working with several CCA’s throughout California • Aliandra Schaffer
• Supervisor
• 4 years in public accounting and performing audits of governments (CCA’s)
Update on Status of current audit:
• The June 30, 2023 audit is well underway:
• No issues to report at this time.
• The audit is going well and we are receiving all
requested data.
• We are approximately 90% complete at this time.
• No significant deficiencies or material weakness in
internal control noted at this time.
Brett Bradford: 707-577-1582
Aliandra Schaffer: 707-577-1535
Questions?
Public
Comment
for Item 14
19 Item 14
Recommendation:
Receive and File Fiscal Year End 2023 Financial
Audit Progress Report Presentation
20 Item 15
Update on Regional Energy Network (REN)
Progress
Recommendation:
Receive and File the Update on Regional Energy
Network (REN) Progress
Presenters:
Colin Santulli, Director of Programs
Sheena Tran, Senior Program Manager
21 In 2012, the CPUC issued a decision inviting local governments to collaborate and submit proposals for a new model for administering energy efficiency programs. REN criteria includes:
• Activities that utilities cannot or do not intend to undertake • Pilot activities where there is no current utility offering and where there is potential for scalability to a broader geographic reach, if successful
• Activities serving hard-to-reach markets, whether or not there is another utility program that may overlap
Regional Energy Network (REN)
Tan shaded areas indicate existing REN territory
22 Agenda
• SDREN Governance Structure and Core Values
• Draft SDREN Programs
• Stakeholder Engagement
• Timeline and Next Steps
SDREN Structure and
Core Values
24 • Oversight and Administration – Portfolio-level vision and strategy; enact program changes during portfolio cycle; oversee future
Business Plan development
• Lead Program Administrator – Fiscal,
regulatory, procurement, program
management
• Advisory Committee – Advisement on
outreach & enrollment, feedback on program
evaluation reports, recommendations on
program improvements
• Local & Regional Governments
• CBOs
• Program Operations Teams – Oversee day-to-day program operations; primarily consist of program managers and 3rd party
implementers
SDREN Governance Structure
25 SDREN Core Values
Integrate a collaborative and
purposeful investment in the
region’s underserved and hard-to-reach communities
Grow a regional clean power
economy that creates
opportunities for the local
workforce
Be a trusted local resource to
coordinate regional policy,
partnerships, and programs
Icons via flaticon.com
SDREN Draft Programs and
Budget
27 Sectors and Target Population
1. Workforce, Education & Training – High School students, adult workforce, and employers
2. Codes & Standards – City and County permitting authorities
3. Residential – Homeowners, renters, property owners, tenants
4. Commercial – Small and medium businesses
5. Public – All public agencies within San Diego County Budget Allocation
● Initial 4 year (2024-2027) annual budget - $25M - $35M ● Residential, Commercial, and Public sectors ~75% of total budget allocation Sectors and Budget Allocation
28 SDREN WE&T
Audience Description Sample offerings
WE&T
Program 1
High school
students
Provide exposure to green careers,
enrollment in college courses and
connections with employers
1:1 career pathway assistance, dual
enroll in STEM college courses at no
cost, paid internship, wraparound
services
WE&T
Program 2
Adult workforce Provide training and connect
participants with jobs in clean energy
economy
Training and certification course at no
cost, networking opportunities, on-the-job Training, wraparound services WE&T
Program 3
Employers Work with employers to develop career
pathways, provide assistance to
ensure employees move through
pathways
Stipends to participate in trainings;
training program development; training
policy development
Expected Budget Allocation: ~20% of overall portfolio budget 29 SDREN Codes & Standards
Audience Description Sample Offerings
C&S Program 1 Public agencies –
Permitting authorities
Policy and compliance support and
enhancing communication and
experience between permitting authorities
and permit applicants.
Needs assessment; Tools &
Templates; Customized one-on-one support; Educational
workshops
Expected Budget Allocation: ~5% of overall portfolio budget 30 SDREN Residential
Audience Description Sample Measures
Res Program 1:
Multifamily
Tenants; Property
owners/ managers
Site assessments, customized technical
assistance, and rebates to property owners
Kits and education to tenant (possible direct
install)
*coordinated with SDG&E program
Individual and central HPWH, LED
lighting/bulbs, HVAC heat pump,
smart thermostats, controls, duct
sealing/insulation, pool pump VSD,
showerheads, aerators, recirculation
pumps, heat pump clothes dryer,
induction stove
Res Program 2:
Single family
Homeowners;
renters
Provide guidance to identify energy programs
and upgrades through connected contractors
for homeowners
Provide kits and education to renters (possible
direct install)
HPWH, smart power strips, HVAC
heat pumps, shower heads, aerators,
LED bulbs, attic insulation, induction
stove, recirculation pumps, HP
clothes dryer
Expected Budget Allocation: ~30% of overall portfolio budget 31 SDREN Commercial
Audience Description Sample Measures
Comm Program 1 Small and medium
businesses
Raise awareness and increase adoption to
EE practices & measures. Connect a
dedicated energy coach to educate SMBs on
the value of EE, support access to funding
and financing, facility assessments, offer
technical assistance & direct install.
*coordinated with SDG&E program
Smart thermostats, HVAC tune-up,
LED lighting, controls, behavioral,
heat pumps, duct
sealing, appliances, faucet aerators,
auto door closers, VFDs, window film,
smart plugs
Comm Program 2 Small corner stores
and food donation
centers
Refrigeration replacement, direct install Glass door and solid door refrigeration & freezer units
Comm Program 3 Commercial
property owners
Work with contractors to offer customized
incentives to reduce energy use at peak
times
Smart thermostats, HVAC,
LED lighting, controls,
behavioral, heat pumps,
duct sealing, appliances,
VFDs, smart plugs
Expected Budget Allocation: ~30% of overall portfolio budget 32 SDREN Public
Audience Description Sample Measures
Public Program 1 Public agencies:
• Cities
• County
• Educational
agencies
• Special districts
Customized and unbiased hands-on expert
guidance and support services from EE project
identification to completion for public facilities and
assets including access to funding and financing.
Focuses on decarbonization measures.
Agency-wide benchmarking and strategic
energy resilience planning
*coordinate with SDG&E Public Sector programs
EE measures: HVAC, HPWH,
LED lighting, pipe insulation, window
film, pumping, process optimization,
RCx, controls, EMS upgrades
DER high-level educational
resources: PV, batteries, EVs, DR
programs, solar hot water heating,
water efficiency
Public Program 2 Tribes Tribal engagement to determine community needs for EE program services; collaborate on
program design modifications, specialized
initiatives, outreach and delivery.
*coordinate with County of SD tribal liaison
Overall stakeholder engagement and
outreach;
establish SDREN tribal collaborative
efforts; customized program
outreach; initiative design services
Expected Budget Allocation: ~15% of overall portfolio budget SDREN Engagement
34 Stakeholder Engagement
Local/Regional Public Agencies
• City of San Diego
• County of San Diego
• Imperial Beach
• Encinitas
• Chula Vista
• SD County Regional Airport Authority
CBOs/NGOs
• MAAC
• Project New Village
• Art Produce
• Chicano Federation
• Casa Familiar
Industry
• South County Economic
Development Council
• Cleantech San Diego
• SD Chamber of
Commerce
Other
• SDG&E
• IBEW 569
• CPUC Energy Division
• Existing RENs
• San Diego Foundation
• La Mesa
• National City
• Vista
• Oceanside
• Clean Energy Alliance
• International Code Council
(ICC) SD Chapter
• Community Colleges
• SD Workforce Partnership
• SD Regional Climate
Collaborative
• Climate Action Campaign
• SD Building Electrification
Coalition
• Coronado
• Carlsbad
• Port of SD
• SANDAG
• SD Green Building
Council
• City of San Diego
Business
Improvement District
Alliance
Timeline and Next Steps
36 REN Formation Timeline
May – October 2023:
• Governance Structure
• Draft Program Development
• Ongoing stakeholder engagement
(20+ presentations)
January 2024 - TBD:
• CPUC public process
• Develop and file Implementation
Plans
• Release RFPs for Implementation
November – December 2023:
• 10/26 SDCP BoD Progress Update
• Compile letters of support
• 12/16 SDCP BoD Seeking Approval
• End Dec File Business Plan
Public
Comment
for Item 15
38 Item 15
Recommendation:
Receive and File the Update on Regional Energy
Network (REN) Progress
39 Item 16
Approval of the Net Billing Tariff
Recommendation:
Approve the Net Billing Tariff
Presenters:
Jack Clark, Chief Operations Officer
Colin Santulli, Director of Programs
Nelson Lomeli, Program Manager
40 Table of
Contents
1. What is Net Billing
Tariff (NBT)?
2. Why adopt NBT?
3. Generation Adders
4. Net Surplus
Compensation
What is Net Billing Tariff?
42 • Net Billing Tariff (NBT) is the next evolution in the new set of rules in California for customers who generate their own clean electricity on-site. • NBT replaces Net Energy Metering (NEM) on how customers are compensated for self-generating electricity that they export to the grid to reduce their electric utility bill. • NBT is for new generation customers that interconnected on or after April 15, 2023. • Does not impact current NEM customers until they complete their 20-year legacy period.
What is Net Billing Tariff?
43 Background on Net Billing Tariff
A Lookback on Net Energy Metering
• Through its proceeding establishing NBT, the CPUC issued an evaluation of the NEM 2.0 Tariff (called a Lookback Study).
• The study determined that as it stands, the NEM program is not cost-effective and leads to higher rates.
• The CPUC determined that a new tariff was needed and solicited ideas from multiple parties in addition to commissioning Energy and Environmental Economics, Inc. (E3) to draft a white paper on potential successors.
• After various hearings, testimony, briefings, and proposals, the CPUC approved NBT in December 2022 for implementation by December 15, 2023.
44 • NBT is designed to balance the costs
to all customers and equity.
• Simultaneously, encourage
sustainable growth of distributed
generation.
• Designed to help promote the
adoption of battery storage for
renewable energy generation
sources.
• Intended to better reflect the needs of
the grid and send appropriate price
signals to help with grid resiliency.
Advantages of Net Billing Tariff
Adopt a Net Billing Tariff
and
Use SDG&E’s Avoided Cost
Calculator Rates
46 • Staff conducted an in-depth analysis
and forecast of solar growth to
determine options.
• Staff determined that adopting NBT
could save all SDCP customers over
$20.7 million over three years.
• These savings will be passed onto
customers through rate savings,
adders, and customer programs, such
as battery incentives.
Analysis of Net Billing Tariff
Anticipated Costs in Millions
$32
$8.5
$2.8
$0
$5
$10
$15
$20
$25
$30
$35
Extend NEM Adopt NBT
Millions
Costs over 3 Years ($ MM)
Adder
47 • Under NBT, credits for electricity
exported to the grid are valued at ACC
rates, instead of retail prices.
• SDCP Power Services Staff analyzed
SDG&E’s ACC documentation for
thoroughness, professionalism, and
adequacy.
• Staff determined that SDG&E’s ACC
rates were a sufficient proxy for
SDCP’s load curve.
• Staff recommends using SDG&E’s
ACC rates for NBT.
Analysis of Avoided Cost Calculator Rates
Example of ACC Rates
Average of Loa Months
Hour of Day 1 2 3 4 5 6 7 8 9 10 11 12 Grand Total
0 $ 0.053 $0.049 $0.051 $0.038 $0.053 $0.051 $0.053 $0.053 $0.052 $0.050 $0.046 $0.053 $ 0.050 1 $ 0.053 $0.049 $0.052 $0.031 $0.048 $0.047 $0.049 $0.051 $0.049 $0.047 $0.045 $0.053 $ 0.048 2 $ 0.054 $0.049 $0.052 $0.029 $0.044 $0.047 $0.049 $0.050 $0.048 $0.046 $0.045 $0.053 $ 0.047 3 $ 0.054 $0.048 $0.050 $0.028 $0.040 $0.048 $0.048 $0.050 $0.047 $0.046 $0.045 $0.052 $ 0.046 4 $ 0.053 $0.049 $0.050 $0.029 $0.041 $0.049 $0.047 $0.050 $0.046 $0.045 $0.045 $0.052 $ 0.046 5 $ 0.053 $0.049 $0.051 $0.031 $0.045 $0.049 $0.048 $0.049 $0.046 $0.045 $0.045 $0.053 $ 0.047 6 $ 0.056 $0.053 $0.053 $0.032 $0.043 $0.049 $0.049 $0.048 $0.048 $0.046 $0.047 $0.054 $ 0.048 7 $ 0.060 $0.053 $0.047 $0.026 $0.022 $0.042 $0.042 $0.049 $0.046 $0.047 $0.042 $0.055 $ 0.044 8 $ 0.057 $0.040 $0.032 $0.011 $0.018 $0.038 $0.041 $0.051 $0.043 $0.043 $0.042 $0.055 $ 0.039 9 $ 0.054 $0.037 $0.025 $0.009 $0.017 $0.040 $0.043 $0.053 $0.044 $0.042 $0.043 $0.055 $ 0.039 10 $ 0.053 $0.036 $0.024 $0.008 $0.017 $0.041 $0.043 $0.053 $0.044 $0.042 $0.042 $0.055 $ 0.038 11 $ 0.052 $0.036 $0.025 $0.008 $0.017 $0.040 $0.043 $0.052 $0.044 $0.043 $0.043 $0.053 $ 0.038 12 $ 0.051 $0.035 $0.024 $0.011 $0.016 $0.039 $0.042 $0.051 $0.043 $0.042 $0.042 $0.053 $ 0.037 13 $ 0.051 $0.036 $0.020 $0.008 $0.016 $0.038 $0.041 $0.050 $0.043 $0.041 $0.043 $0.052 $ 0.037 14 $ 0.051 $0.037 $0.020 $0.006 $0.014 $0.039 $0.041 $0.050 $0.042 $0.041 $0.045 $0.052 $ 0.036 15 $ 0.052 $0.040 $0.021 $0.003 $0.013 $0.039 $0.041 $0.051 $0.044 $0.043 $0.050 $0.054 $ 0.038 16 $ 0.060 $0.057 $0.025 $0.004 $0.013 $0.042 $0.044 $0.055 $0.051 $0.049 $0.054 $0.057 $ 0.043 17 $ 0.065 $0.066 $0.048 $0.011 $0.024 $0.053 $0.066 $0.151 $0.069 $0.077 $0.055 $0.061 $ 0.062 18 $ 0.065 $0.064 $0.064 $0.042 $0.059 $0.062 $0.070 $0.318 $3.121 $0.055 $0.054 $0.062 $ 0.336 19 $ 0.065 $0.064 $0.066 $0.041 $0.054 $0.062 $0.345 $0.923 $3.515 $0.055 $0.055 $0.061 $ 0.442 20 $ 0.065 $0.064 $0.065 $0.041 $0.056 $0.063 $0.149 $0.325 $0.175 $0.054 $0.055 $0.060 $ 0.098 21 $ 0.063 $0.064 $0.063 $0.040 $0.054 $0.060 $0.064 $0.441 $0.060 $0.055 $0.054 $0.057 $ 0.090 22 $ 0.058 $0.057 $0.060 $0.038 $0.053 $0.061 $0.061 $0.342 $0.058 $0.053 $0.050 $0.054 $ 0.079 23 $ 0.054 $0.052 $0.056 $0.037 $0.055 $0.058 $0.057 $0.056 $0.051 $0.049 $0.050 $0.055 $ 0.053 Grand Total $ 0.056 $0.049 $0.043 $0.023 $0.035 $0.048 $0.066 $0.143 $0.326 $0.048 $0.047 $0.055 $ 0.078 Generation Adders
49 • In establishing NBT, the CPUC aimed
for new customers to payback their
renewable energy investment within 9
years.
• The CPUC determined that due to the
high rates in SDG&E territory, projects
already achieve a 9-year payback.
• They provided adders for new
customers in PG&E and SCE territory,
but not SDG&E.
Net Billing Tariff Avoided Cost Calculator Plus
Adders
Simple Payback Periods for NBT Customers
Stand-alone Solar Payback Period (years)
Customer Segment SDG&E PG&E SCE
Residential Non-CARE $0.000 $0.022 $0.040
Residential CARE $0.000 $0.090 $0.093
All Non-Residential $0.000 $0.000 $0.000
CPUC-approve ACC+ Adders
50 SDCP Generation Adders
Proposed to Make the Tariff the Most Customer-centric and Competitive • Enhance the competitiveness of SDCP’s NBT and value of SDCP to customers • Close the generation bill credit gap and reduce the payback period to make adoption more financially attractive for customers
• Address and promote equity for CARE and/or FERA customers • Ensure simplicity and ease of understanding of the adder • Support grid reliability
51 SDCP Generation Adders
Proposed to Make the Tariff the Most Customer-centric and Competitive • Provide an adder for 6 years to all new customers, including commercial, that install new generation in the next three years
o Base adder of $0.0075/kWh makes for a 6-year simple payback period • Provide a higher adder for 6 years to CARE/FERA customers that install new generation in the next three years to reduce payback period
o CARE adder of $0.11/kWh reduces simple payback period to 6 years from 8 years! Proposed SDCP Adders
Customer
Class
Residential
(Non-CARE/FERA)
Residential
(CARE/FERA) Commercial
Adder Amount $0.0075/kWh $0.11/kWh $0.0075/kWh
Stand-alone
Solar Payback
Period (years)
5.83 5.91 7.33
Net Surplus Compensation
53 Net Surplus Compensation
A Customer-centric Approach for Annual Net Electricity Exported • Under NBT, the CPUC authorized the utilities to implement an “adjustment” to the NSC process that would result in a lower NSC amount for NBT customers. • The utilities contend that since all electricity exports are paid already at ACC rates, paying for NSC at the NSC rate (which is essentially the ACC) would be a double payment. • SDCP takes a customer-centric view that the generation of billing credits using the ACC is different than the compensation of excess annual electricity. • Staff propose to not implement an adjustment during the NSC process and cash out. • Staff estimates that NSC payments may cost approximately $3.2 million over three years. • NBT-served customers would follow the standard NSC process where a check is automatically issued if the NSC payment amount is $100 or more, otherwise, the amount is rolled over into the next billing cycle.
Stakeholder Engagement
55 Stakeholder Engagement
Broad Outreach Conducted to Solicit Feedback
• SDCP Board of Directors
• SDCP Community
Advisory Committee
Members
• Local Public Agencies’
Elected Officials and Staff
• California Solar & Storage
Association (CalSSA)
• Climate Action
Campaign (CAC)
Battery Energy Storage Pilot
Program
57 Battery Energy Storage Pilot Program
Developing a Pilot Program for 2024
• Incentivizing the addition of storage with generation is one of the goals of NBT. Adding storage reduces the payback period further for customers.
• Staff intend to launch a battery storage incentive program in 2024. • Update to the CAC and BoD in Q1 2024.
• Staff will engage with industry, customers, advocates, and community-based organizations on the design of the program. • Program can be funded through the savings achieved by adoption of NBT, current pilot project budget and future year budget allocations.
Recommendations Summary
59 Staff’s Recommendations
Create a More Equitable Playing Field for All
1. Approve NBT for all new customers and transitioning customers.
2. Utilize SDG&E’s Avoided Cost Calculator rates for billing credits.
3. Provide Generation Adders for 6 years to all new NBT customers that install generation systems in the next three years, with a higher amount for CARE/FERA customers.
4. Adopt the standard approach to Net Surplus Compensation for NBT customers and do not implement an adjustment.
Public
Comment
for Item 16
61 Item 16
Recommendation:
Approve the Net Billing Tariff
62 Item 17
Approval of Updates to the Existing Net Energy
Metering (NEM) Tariff
Recommendation:
Approve the Updates to the Existing Net Energy
Metering Tariff
Presenters:
Lucas Utouh, Senior Director of Data Analytics & Customer Operations Nelson Lomeli, Program Manager
63 1. Remove $2,500 Net Surplus Compensation (NSC) limit per account per relevant period
2. Adoption of a NEM Generation Credit Refund to ensure that customers are not negatively impacted by SDCP’s default monthly NEM billing option
Proposed Updates to SDCP’s NEM Policy
Public
Comment
for Item 17
65 Item 17
Recommendation:
Approve the Updates to the Existing Net Energy
Metering Tariff
66 Item 18
Update on Local Distributed Infill Plan
Recommendation:
Receive and File the update on Local Distributed
Infill Plan
Presenter:
Morgan Adam,
Senior Local Development Manager, Power Services
67 Provides relief
from CAISO
transmission
congestion
Supports local
workforce
development in
SD County &
provides local
tax revenue
Diversifies
SDCP’s
procurement
mix
Promotes
utilization of
developed sites
(e.g. rooftops,
parking lots,
brownfield
sites)
Supports grid
resilience
SDCP Infill Goal
Energy Portfolio Development Goal #3:
By 2035, 15% of load served by new, infill DERs
68 DERs: Wholesale & Customer Programs
Wholesale DER
Procurement
• Local RFI
• Solicitations/RFOs
• Feed-In-Tariff
• Community Solar
DER Customer
Programs
• Net Billing Tariff
• Demand Response
• Virtual Power Plants
• Microgrids/Resilience
69 Wholesale DER Overview
Local Rolling RFI
(ongoing)
Green Tariff Programs Solicitation
(Aug 2023)
Local Distributed RFO
(Oct 2023)
FIT Expansion
(Q1 2024)
Member Agency DER Development
(ongoing, Tranche 1 expected Q2 2024)
70 Local Request for Information (RFI)
EnerSmart: 6 distributed batteries in SD County (19.5 MW of Local RA) Multiple other opportunities under negotiation
Solar for Our Communities Green Tariffs
Solar Discount Program (DAC-GT)
Community Solar Program (CSGT)
Recent Successes
71 Local Distributed RFO
A broad solicitation to cast a wide infill net
Key Dates – Released this Week, Shortlist and Award in January .
.
NEW - Local Distributed Infill RFO
Eligible resources:
• Renewable and energy storage DERs
• 100kW – 10MW
• Distribution interconnected
• Located in San Diego County
Offers accepted through December 22, 2023
For more information, please visit https://sdcommunitypower.org/resources/solicitations/ 72 Upcoming Infill Procurement Initiatives
Feed-In-Tariff (FIT) Expansion
Expected Q124
Member Agency Site Development
Ongoing
Likely to expand FIT to increase project sizing and incorporate stand-alone storage
Include market intel from Distributed RFO
Continued collaboration with member agencies
Hone initial site list and identify highest viability sites for first tranche of development (expected Q2 2024)
73 Wholesale DER Recap
Local Rolling RFI
Green Tariff Programs
Local Distributed RFO
FIT Expansion
Member Agency DER Development
Public
Comment
for Item 18
75 Item 18
Recommendation:
Receive and File the update on Local Distributed
Infill Plan
76 Item 19
Approval of the NextEra Desert Sands Standalone
Storage Energy Storage Services Agreement
(ESSA)
Recommendation:
Approve a 20-Year NextEra Desert Sands Energy Storage Services Agreement (ESSA) with Desert Sands Energy Storage II, LLC for a 60 MW/480 MWh (8-hour) battery storage project.
Presenter:
Andrea Torres, Senior Portfolio Manager
77 Standalone Storage RFO
• SDCP issued an RFO on April 12, 2023 for standalone storage projects
• Standalone storage assets provide capacity, energy arbitrage and ancillary services for load serving entities like SDCP • SDCP received a robust response of offers for primarily lithium- ion battery storage projects of varying capacities and duration. • NextEra’s Desert Sands Energy Storage project was among those shortlisted for negotiations by staff and the Energy Contracts Working Group.
78 Desert Sands Energy Storage • 60 MW/480 MWh (8-
hour) lithium-ion battery
• Location: Palm Springs,
Riverside County
• Project is a portion of a
larger energy complex for
which the CCA Clean
Power Alliance has an
executed contract for 75
MW/600 MWh
79 Desert Sands Energy Storage: Key Terms
• Product: Full toll and Resource Adequacy benefits
• Pricing: Fixed capacity pricing adjusted for capacity and availability over a 20-year term
• Timeline: Guaranteed Commercial Operation Date: April 1, 2027 • SDCP receives financial compensation for failure to meet certain performance requirements including but not limited to achieving certain development milestones and meeting guaranteed round-trip efficiency rates over the delivery term. 80 Desert Sands Energy Storage: Staff Analysis
With FCDS status and commercial operations commencing in 2027, Desert Sands would fulfill SDCP’s Long-Duration Energy Storage MTR requirements under the extension to CPUC D.23-02-040.
Pricing is competitive with comparable product offerings received from SDCP’s recent RFOs for long-duration storage.
Long-duration storage will provide increased grid resiliency and reliability for our customers.
NextEra is a global leader in renewable and storage development with over 4 GW developed in California.
81 Desert Sands Energy Storage: Workforce Development
and Community Benefits
• NextEra is committed to making a $250,000 contribution to a community benefits fund that is to be established to directly benefit stakeholders in SDCP’s service area. • The entirety of Desert Sands will provide over 200 construction jobs for which NextEra will ensure that the project is built with union labor. • NextEra hosts a Renewable Energy Training (RET) simulation lab at the Desert Hot Springs High School in Desert Springs, CA (near the Desert Sands project) • NextEra has a collaborative partnership with College of the Desert (which serves the Coachella Valley region in Riverside County, CA) where NextEra provides training equipment and subject matter expertise in training students for solar construction. • NextEra established an internship program that leads to career opportunities at NextEra solar and storage sites.
Public
Comment
for Item 19
83 Item 19
Recommendation:
Approve a 20-Year NextEra Desert Sands Energy
Storage Services Agreement (ESSA) with Desert
Sands Energy Storage II, LLC for a 60 MW/480 MWh
(8-hour) battery storage project.
84 Item 20
Approval of the Pattern SunZia Power Purchase
Agreement (PPA)
Recommendation:
Approve a 15-Year Pattern SunZia Power Purchase
Agreement (PPA) with SunZia Wind PowerCo LLC
for a 150 MW portion of an approximately 3,500 MW
SunZia Wind project.
Presenter:
Andrea Torres, Senior Portfolio Manager
85 Long-Term California RPS-Eligible Renewable Energy
Request for Proposals (RFP)
• SDCP issued an RFP in October 2022 for renewables and paired renewables + storage projects.
• SDCP received a variety of offers for a solar, wind and battery assets.
• Pattern Energy’s SunZia Wind project was among those
shortlisted for negotiations by staff in consultation with the Energy Contracts Working Group.
86 SunZia Wind PowerCo LLC
• 150 MW of wind of
approximately 3,500
MW from the SunZia
Wind project
•Project location:
Lincoln, Torrance and
San Miguel counties,
New Mexico
87 SunZia Wind: Key Terms
• Product: Energy, PCC1 RECs, Resource Adequacy
• Pricing: Fixed pricing per MWh of deliveries
• Timeline: Expected Commercial Operation Date: March
31, 2026
• SDCP receives financial compensation for failure to
meet certain performance requirements including but not limited to achieving certain development milestones or
failure to deliver minimum MWh volumes annually.
88 SunZia Wind: Staff Analysis Pricing is competitive with comparable product offerings received from SDCP’s
recent RFOs for wind generation.
Wind generation is expected to be generally
complementary to solar photovoltaic
generation, both on a daily and seasonal
timeframe, providing needed diversity in
SDCP’s portfolio.
SunZia Wind will contribute toward SDCP’s
mid-term reliability requirements.
Pattern has 14 years of experience in
renewable energy development and operates
367 MW in wind generation projects in
California.
Pattern has placed more than 6,000 MW of
wind and solar projects into service
worldwide.
Figure. Illustrated SunZia daily wind profile compared to solar profiles (Source: Pattern SDCP RFO project narrative)
89 SunZia Wind: Workforce Development and
Community Benefits
The 3,500 MW SunZia Wind project is estimated to create approximately 2,000 construction jobs.
Pattern provides $50,000 annually to the Corona Landowners Association which provides scholarships to local students.
Pattern supports the Region 9 Educational Cooperative through a grant match to support youth vocational education on a mobile wind and solar technical training program.
SunZia Wind has received letters of support from IBEW International President, Kenneth Cooper and from the New Mexico Building Construction & Trades Council.
Public
Comment
for Item 20
91 Item 20
Recommendation:
Approve a 15-Year Pattern SunZia Power Purchase
Agreement (PPA) with SunZia Wind PowerCo LLC
for a 150 MW portion of an approximately 3,500 MW
SunZia Wind project.
Report by
Chief
Executive
Officer
We Are (Still) Hiring!
Open Positions
• Key Account Service Manager - Open
• Legislative Manager/Senior Legislative
Manager - Interviewing
• General Counsel - Open
• Senior Executive Assistant to the C-Suite -
Open
New Employee
Onboarding
Starting on Nov. 1:
Diana Gonzalez, Risk Manager
Erin Hudak, Compliance Analyst
Kiran Singh, Director of Data
Analytics and IT
Report by
General
Counsel
Director
Comments
Adjournment
Next Regular
Board of Directors Meeting
November 16, 2023