Board of
Directors
Regular Meeting
April 25, 2024
Welcome
&
Call to Order
Roll
Call
4 Land
Acknowledgement
Warm Welcome to our New Hires!
Maricela Hernandez
Clerk of the Board
Items to
be Added,
Withdrawn
or
Reordered
on the
Agenda
Public
Comment
for Items
NOT
on the
Agenda
9 Consent
Agenda
1. Approve March 28, 2024, Meeting Minutes
2. Receive and File Treasurer’s Report for Period Ending February 29, 2024
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, Public Relations, and Local Government Affairs
8. Receive and File Community Advisory Committee Monthly Report
9. Receive and File Update on Regulatory and Legislative Affairs
10. Approve Sixth Amendment to Professional Services Agreement with NewGen Strategies and Solutions
11. Adopt Resolution Appointing an SDCP Secretary
12. Approve Fifth Amendment to Professional Services Agreement with Brentech Inc. for up to $316,680 for Computer and IT-Related Services through June 30, 2024
Public
Comment
for
Consent
Agenda
11 Regular
Meeting
Agenda
13. Update on Vehicle-Grid Integration Strategy Overview
14. Quarterly Report on Community Advisory Committee
15. Approve First Amendment to the EEI Transaction
Confirmation for Modified CAM Resource Adequacy
between SDCP and SDG&E
16. Approve Amended and Restated Power Purchase
Agreement (PPA) with Pelicans Jaw Solar, LLC
12 Item 13
Update on Vehicle-Grid Integration Strategy
Overview
Recommendation:
Receive and File Vehicle-Grid Integration Strategy
Overview.
Presenter:
Timothy Treadwell, Senior Program Manager
13 Executive Summary
• California is undergoing a rapid transition to electric vehicles (EVs), presenting both opportunities and challenges to grid management.
• San Diego County is at the forefront of EV adoption, offering a compelling case study for exploring managed charging options and grid integration strategies. • This presentation:
• Discuss vehicle-grid integration strategies and grid optimization use cases as an extension of the Flexible Load Strategy
• Provide a recommended strategy and roadmap for VGI at SDCP 14 -
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Electric PHEV Cumulative
Source: California Energy Commission. (2023, April). Light-Duty Vehicle Population in California.
Retrieved from https://www.energy.ca.gov/data-reports/energy-almanac/zero-emission-vehicle-and-infrastructure-statistics/light-duty-vehicle EV Market Characterization in San Diego County
15 Regulatory Framework
Senate Bill (SB) 676 (2019) required the CPUC to establish strategies and quantifiable metrics to maximize the use of feasible and cost-effective electric vehicle grid integration (VGI) by 2030.
Per the Decision, VGI is defined as:
“Electric vehicle grid integration means any method of altering the time, charging level, or location at which grid-connected light-duty electric vehicles, medium-duty electric vehicles, heavy-duty electric vehicles, off- road electric vehicles, or off-road electric equipment charge or discharge, in a manner that optimizes plug-in electric vehicle or equipment interaction with the electrical grid and provides net benefits to ratepayers by doing any of the following:
• Increasing electrical grid asset utilization and operational flexibility • Avoiding otherwise necessary distribution infrastructure upgrades and supporting resiliency • Integrating renewable energy resources
• Reducing the cost of electricity supply
• Offering reliability services consistent with the resource adequacy requirements established by Section 380 or the Independent System Operator tariff.” 16 VGI Categories
V2G
Vehicle-to-Grid
V2B
Vehicle-to-Building
V2H
Vehicle-to-Home
V1G
Unidirectional Grid-to-Vehicle
Unmanaged Charging
V2G
Vehicle-to-grid bidirectional charging and
discharging, under which EVs may discharge
onto the grid in addition to characteristics
offered by V1G. V2B & V2H
Vehicle-to-building
integration, under which an
EV may provide power
directly to a home or
building. V1G
Vehicle charging is managed to respond
to grid requirements to improve reliability
and reduce costs. This includes pricing
signals (TOU and DR) and active control
of vehicle charging.
Unmanaged
Charging
Vehicle charging
is performed
solely by the
customer.
17 V1G – Managed EV Charging
V1G Explained
V1G focuses on of when kWh are delivered to the EV battery by leveraging intelligent management of EV charging based on grid needs and/or electricity pricing, focusing on reducing costs and optimizing grid load.
• May involve charging primarily during off-peak hours or dynamically adjusting charging rates in response to real-time grid conditions.
• Does not involve sending power back from the EV to the grid.
V1G
Provider
OEM OEM
18 V1G Opportunities
Participant Bill Savings
• Optimize EV charging schedule around time-of-use rates • Provide summary of charging history and alignment with low-cost periods Energy Procurement
• Reduce on-peak usage through targeted daily load shifting • Increase consumption during low/negative pricing events using chemical/thermal storage • Manage usage in real time to align load with forecasted/hedged position Resource Adequacy (RA)
• Reduce demand and RA obligation through daily load shifting • Monetize customer capacity through California Independent System Operator (CAISO) market integrated programs
19 Pilot Programs –
Customer API
Access
Peninsula Clean Energy
Objectives
• Reduce overall daily peak loads and
maximize for daytime solar
• Reduce customer bills
• Test customer reactions to different
incentive types
Strategy
• Leverages OEM cloud-based telematics for
charge scheduling
• Assesses load shift through rate
modification and TOU design
Quick Stats
• ~700 customers recruited
Customer Journey
• High retention
• Program participants used less energy overall
• $100 one-time incentive most effective, $12.50
customer bill savings per month
20 Pilot Programs –
Direct OEM API
Pacific Gas & Electric
Objectives
• Improve grid resiliency
• Optimize charging around low cost and low
carbon periods
• Increase EV driver preparedness in PSPS
impacted communities
Strategy
• Leverages OEM cloud-based telematics for
charge scheduling
• Assesses customer preferences, utility
rates, and electricity grid needs
Quick Stats
• ~3,500 customers recruited
Customer Journey
• Invited customers in eligible zip codes
• Received a recommended charging schedule with
access to a personalized dashboard that will show
optimal charging times
• Text alerts to prepare for PSPS events
• $50 incentive for joining and up to $100 more for
continued participation
21 V2X – Bidirectional EV Charging
V2X Explained
V2X allows for power to flow from the battery to meet site load or grid needs. This allows EVs to support grid operation, as well as act as resilience assets for customers during grid outages. • Existing EV storage is 5x the amount of stationary storage currently on the grid (25 GWh in 2023)1
• Interconnection requirements for V2G capable PEVs screened as “generating resources” under Rule 21.
1With a sales-weighted average battery size of 60 kilowatt-hours (kWh) for light-duty EVs, (source) the United States’ (U.S.) 2.1 million battery electric vehicles (BEVs) represent approximately 126
Gigawatt-hours (GWh) in storage capacity (source).
BEHIND IN FRONT
22 V2X Configurations
V2G
Description: EV provides
supplementary power to a building
while connected to or disconnected
from the grid.
Benefits: Saves customers money
by reducing the customer’s peak
demand from the utility and/or is
used to provide backup power to a
building during blackouts.
Limitations: Can operate as grid
isolated or parallel, non-exporting.
Interconnection agreements are
required if set up for parallel
operation.
Description: EV operates as grid
resource, allowing charge and
discharge, supporting various grid
services.
Benefits: Reduces net load during
system and distribution peak hours
to lower customer bills and
operational costs.
Limitations: Interconnection
required and many of the use
cases/value streams are not
compensated for under current
markets/rules.
V1G: Interconnection not required.
V2H/V2B: Requires interconnection agreement.
V2G: Requires interconnection agreement.
V2H/V2B
V1G
V2G
V2H/V2B
23 Bidirectional Charging Applications
Application Description V2H/B V2G
Peak Shaving Discharge vehicle batteries to support real-time usage without dispatching to grid. X X Grid Export Discharge vehicle batteries across the meter to provide grid services. X Grid-tied
Non-export Discharge vehicle batteries behind the meter (V2H & V2B) to meet site load. X Islanded
Operations Discharge vehicle batteries to meet site load when grid is down. X Renewable
Integration
Charge and discharge vehicle batteries in coordination with intermittent renewable generation. X X
Energy
Arbitrage Charge and discharge vehicle batteries based on market signals/price differentials. X X 24 VGI Value Streams
SDCP SDG&E ISO
Generation Energy
& Capacity:
Estimate of hourly
wholesale value of
energy and the
costs of building
new generation
capacity to meet
system peak loads
Distribution
Capacity: The
costs of expanding
distribution capacity
to meet peak loads
Ancillary Services:
The marginal costs
of providing
transmissions,
system operations
and reserves for
grid reliability
Net Cost Resource Adequacy
Ancillary Services Revenue
System Energy Cost CO2 Cost
Distribution Capacity
RPS Cost
Cost &
Benefit
Net
Value
Unmanaged
Charging V1G V2G
Real Levelized $ per Year per
EV
Cost &
Benefit
Net
Value
Cost &
Benefit
Net
Value
Source: Chhaya, Sunil & Mccollou, Norm & Ananth, Viswanath & Maitra, Arindam & Ravikumar, Ramakrishnan & Dunckley, Jamie & Bellino, George & Bourton, Michael & Scholer, Richard & Cutter, Eric & Botsford, Charles. (2019). Distribution System Constrained Vehicle-to-Grid Services for Improved Grid Stability and Reliability. 10.13140/RG.2.2.20018.25288.
System Energy Cost
CO2 Cost
RPS Cost
Resource Adequacy
Ancillary Services
Revenue
Distribution
Capacity
25 VGI Roadmap Overview
V1G Charge Management Strategies
• Scale: Pilot scale enrollment of hundreds of
customers.
• Customer Centric: Optimize based on rate
schedule and customer preference (e.g. set
points, vehicle departure times, nomination
capacity)
• Operationally Efficient: Dispatch to
maximize retail-wholesale spread and
minimize RA
V2X Bidirectional Charging
• Scale: Demonstration scale enrollment of
tens of customers.
• Grid and Customer Value: Discharge
when RA/Energy value exceeds round trip
efficiency losses and T&D costs
• Resiliency: Operate to minimize impacts
during customer outages
• Leveraged Funding: Coordinate with
CEC awardees
26 VGI Roadmap Timeline
Gantt chart with PS, LMS, all programs, RA, etc.
2024 2025
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Market Assessment
Pilot Planning
Procurement Process
Implementation Customer Enrollment
Public
Comment
for Item 13
28 Item 13
Update on Vehicle-Grid Integration Strategy
Overview
Recommendation:
Receive and File Vehicle-Grid Integration Strategy
Overview.
Presenter:
Timothy Treadwell, Senior Program Manager
29 Item 14
Quarterly Report on Community Advisory
Committee
Recommendation:
Receive and file the Quarterly Report on the
Community Advisory Committee.
Presenter:
Matthew Vasilakis, CAC Chair
30 Quarterly Report on Community Advisory
Committee
Key Highlights
• 2024 CAC Ad-Hoc Committees:
o Community Grants
o Power100
• CAC did not meet in March
January 2024 through March 2024
Public
Comment
for Item 14
32 Item 14
Quarterly Report on Community Advisory
Committee
Recommendation:
Receive and file the Quarterly Report on the
Community Advisory Committee.
Presenter:
Matthew Vasilakis, CAC Chair
33 Item 15
Approve First Amendment to the EEI Transaction
Confirmation for Modified CAM Resource Adequacy
between SDCP and SDG&E
Recommendation:
Approve the First Amendment to the EEI Transaction Confirmation for Modified CAM Resource Adequacy between SDCP and SDG&E and authorize the CEO to execute the agreement in substantially similar form.
Presenter:
Byron Vosburg, Managing Director Power Services
34 Modified CAM Amendment
Background:
• CPUC Decision 19-11-016 (IRP Proceeding) ordered procurement of 3300 MW of System Resource Adequacy (RA)
• LSEs allocated procurement responsibility based on load-share • SDCP was not yet serving load
• CPUC Decision 22-05-015 required SDG&E to sell SDCP its share of resources • SDCP and SDG&E disagreed about the appropriate calculation methodology • SDCP agreed to SDG&E’s methodology in the interest of complying timely with DD.22- 05-015, resulting in original MCAM transaction (SDCP Board approved June 2022) • SDCP and CEA filed a PFM to clarify the load-share calculation methodology • CPUC Decision 23-12-014 granted PFM and offered non-IOU LSEs the opportunity to amend MCAM purchase transactions
35 Modified CAM Amendment
Proposed Transaction:
• SDCP to buy its load share of SDG&E’s D.19-011-016 contracted capacity • Amendment increases SDCP load share from ~34% to ~57% effective January 2025 • SDG&E’s total obligation is 293 MW, required to be online by 2023 • SDCP’s share expected to increase from ~109 MW to ~182 MW • Contract Start: Sept 1, 2022
• Term: Through expiration of SDG&E’s upstream contracts • Price: CPUC Market Price Benchmark for RA
• Resources: Various energy storage, renewable energy, and natural gas Public
Comment
for Item 15
37 Item 15
Approve First Amendment to the EEI Transaction
Confirmation for Modified CAM Resource Adequacy
between SDCP and SDG&E
Recommendation:
Approve the First Amendment to the EEI Transaction Confirmation for Modified CAM Resource Adequacy between SDCP and SDG&E and authorize the CEO to execute the agreement in substantially similar form.
Presenter:
Byron Vosburg, Managing Director Power Services
38 Item 16
Approve Amended and Restated Power Purchase
Agreement (PPA) with Pelicans Jaw Solar, LLC
Recommendation:
Approve a 15-year Amended and Restated Renewable Power
Purchase Agreement with Pelicans Jaw Solar, LLC for a 440 MW solar photovoltaic electric (PV) generation facility and 238.5 MW (4-hour) Battery Energy System Storage (BESS) facility.
Presenter:
Byron Vosburg, Managing Director Power Services
39 Pelicans Jaw: Project Summary
• 440 MW PV and 238.5/954 MWh (4-hour) lithium-ion battery • Location: Kern County
40 History
• This project came through a competitive solicitation SDCP issued in early 2023. The project was shortlisted by SDCP’s energy contract working group. • SDCP’s board of directors approved a PPA for 226 MW PV and 118/472 MWh (4-hour) lithium-ion battery at the January 2024 board meeting.
• Additional volume from the project became available and staff discussed with the energy contract working group. Upon approval to move forward with negotiations, staff reached terms mutually agreeable to both parties.
• This A&R PPA seeks to add 214 MW PV and 120.5/482 MWh (4-hour) lithium-ion battery capacity to the previously approved PPA.
41 Pelicans Jaw: Key Terms
• Product: RPS, capacity and ancillary services
• Pricing: Fixed for a 15-year term
• Timeline: Guaranteed Commercial Operation Date is 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 efficiency rates over the delivery term. 42 Pelicans Jaw: Staff Analysis
• The Pelicans Jaw project will contribute to SDCP’s 100% renewable by 2035 target, providing over 1,200,000 MWh of renewable energy per year, in addition to energy management and capacity benefits from battery energy storage. • With commercial operations commencing in 2027, Pelicans Jaw would help fulfill SDCP’s Mid-Term Reliability requirements under CPUC D.21-06-025. • Pricing is competitive with comparable product offerings received from SDCP’s recent RFPs. The long-term purchase of energy, RPS attributes, and capacity will provide SDCP with significant value and cost certainty over the term of this PPA. • With the additional volume, staff was able to reduce the Renewable Rate and Storage Rate, to lower costs for SDCP rate payers
• SBE is a California-based solar and storage developer, owning and operating 1.4 GWac of solar projects in US, including 450 MWac of solar projects operating in California with 3 GWac of solar and 4.8 GWac of storage in its California pipeline, including the Pelicans Jaw project.
43 Pelicans Jaw: Workforce Development and Community Benefits • The project will provide 800 construction jobs and 6-8 permanent jobs. • The project has a fully executed Project Labor Agreement with:
• Operating Engineers Local 12 – San Diego, CA
• Southwest Regional Council of Carpenters – Los Angeles, CA • Southern California District Council of Laborers and its affiliated Local Union 220 – Bakersfield, CA • IBEW Local 428 – Bakersfield, CA
• IBEW Local Union 47 – Diamond Bar CA
• Ironworkers Locals 416 and 433 – Norwalk, CA & City of Industry, CA • The project has committed $500,000 to a community benefit fund to benefit SDCP customers.
Public
Comment
for Item 16
45 Item 16
Approve Amended and Restated Power Purchase
Agreement (PPA) with Pelicans Jaw Solar, LLC
Recommendation:
Approve a 15-year Amended and Restated Renewable Power
Purchase Agreement with Pelicans Jaw Solar, LLC for a 440 MW solar photovoltaic electric (PV) generation facility and 238.5 MW (4-hour) Battery Energy System Storage (BESS) facility.
Presenter:
Byron Vosburg, Managing Director Power Services
Report by
Chief
Executive
Officer
Report by
General
Counsel
Director
Comments
Adjournment
Next Regular
Board of Directors Meeting
May 24, 2024