AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER 1 Appro
AGENDA
Meeting of the Finance and Risk Management Committee
San Diego Community Power (SDCP)
May 16, 2024
3:00 p.m.
City of San Diego Metropolitan Operations Complex (MOC II) Auditorium 9192 Topaz Way, San Diego, CA 92123
The meeting will be held in person at the above date, time and location. Finance and Risk Management Committee (FRMC) Members and members of the public may attend in person. Under certain circumstances, FRMC Members may also attend and participate in the meeting virtually pursuant to the Brown Act (Gov. Code § 54953). As a convenience to the public, SDCP provides a call-in option and internet-based option for members of the public to virtually observe and provide public comments at its meetings. Additional details on in-person and virtual public participation are below. Please note that, in the event of a technical issue causing a disruption in the call-in option or internet-based option, the meeting will continue unless otherwise required by law, such as when an FRMC Member is attending the meeting virtually pursuant to certain provisions of the Brown Act.
Note: Any member of the public may provide comments to the Finance and Risk Management Committee on any agenda item. When providing comments to the FRMC, it is requested that you provide your name and city of residence for the record. Commenters are requested to address their comments to the FRMC as a whole through the Chair. Comments may be provided in one of the following manners:
1. Providing Oral Comments During Meeting. Anyone attending in person desiring to address the FRMC is asked to fill out a speaker’s slip and present it to the Clerk of the Board or the Secretary. To provide remote comments during the meeting, join the Zoom meeting by computer, mobile phone, or dial-in number. On Zoom video conference by computer or mobile phone, use the “Raise Hand” feature.
This will notify the moderator that you wish to speak during a specific item on the agenda or during non-agenda Public Comment. Members of the public will not be shown on video but will be able to speak when called upon. If joining the meeting using the Zoom dial-in number, you can raise your hand by pressing *9. Comments will be limited to three (3) minutes.
2. Written Comments. Written public comments must be submitted prior to the start of the meeting by using this (Web Comment Form). Please indicate a specific agenda item when submitting your comment. All written comments received prior to the meeting will be provided to the FRMC members in writing. In the discretion of the Chair, the first ten (10) submitted comments shall be stated into the record of the meeting. Comments read at the meeting will be limited to the first 400 words. Comments received after the start of the meeting will be collected, sent to the FRMC members in writing, and be part of the public record.
If you have anything that you wish to be distributed to the FRMC, please provide it via [email protected], who will distribute the information to the Members.
AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER 2 The public may participate using the following remote options:
Teleconference Meeting Webinar https://zoom.us/j/93476863568 Telephone (Audio Only) (669) 900-6833 or (253) 215-8782 | Webinar ID: 934 7686 3568
WELCOME
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED ON THE AGENDA
PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
Opportunity for members of the public to address the Board on any items not on the agenda but within the jurisdiction of the Board. Members of the public may provide a comment in either manner described above.
CONSENT CALENDAR
1. Approve April 11, 2024, Meeting Minutes
Recommendation: Approve April 11, 2024, Meeting Minutes.
MEETING AGENDA
2. Review of Treasurer’s Report for Period Ending March 31, 2024 Recommendation: Receive and File Treasurer’s Report for Period Ending March 31, 2024.
3. Presentation and Discussion of the FY 2024-25 Operating Budget Recommendation: Receive staff presentation on the preliminary proposed FY 2024-25 Operating Budget.
4. Recommend Board Approval of Power100 Green-e Certified Service Recommendation: Recommend Board approval of Power100 Green-e Certified Service.
Committee Member Announcements
Committee Members may briefly provide information to other members and the public. There is to be no discussion or action taken on comments made by Directors unless authorized by law.
ADJOURNMENT
The Finance and Risk Management Committee will adjourn to the next regular meeting scheduled on June 20, 2024.
AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER 3 Compliance with the Americans with Disabilities Act
SDCP Committee meetings comply with the protections and prohibitions of the Americans with Disabilities Act. Individuals with a disability who require a modification or accommodation, including auxiliary aids or services, in order to participate in the public meeting may contact (888) 382-0169 or [email protected]. Requests for disability-related modifications or accommodations require different lead times and should be provided at least 72-hours in advance of the public meeting.
Availability of Committee Documents
Copies of the agenda and agenda packet are available at https://sdcommunitypower.org/resources/ meeting-notes/. Late-arriving documents related to a Board meeting item which are distributed to a majority of the Members prior to or during the Board meeting are available for public review as required by law. Public records, including agenda-related documents, can be requested electronically at [email protected] or by mail to SDCP, PO BOX 12716, San Diego, CA 92112. The documents may also be posted at the above website. Such public records are also available for inspection, by appointment, at San Diego Community Power, 2305 Historic Decatur Road, Suite 200, San Diego, CA 92106. Please contact [email protected] to arrange an appointment.
MEETING MINUTES – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER –APRIL 11, 2024 1 FINANCE AND RISK MANAGEMENT COMMITTEE
SAN DIEGO COMMUNITY POWER (SDCP)
City of San Diego Metropolitan Operations Complex (MOC II) Auditorium 9192 Topaz Way, San Diego, CA 92123
Meeting Minutes
April 11, 2024
________________________________________________________________________________________ The Committee minutes are prepared and ordered to correspond to the Committee Agenda. Agenda Items can be taken out of order during the meeting.
The Agenda Items were considered in the order presented.
WELCOME
CALL TO ORDER
Chair McCann (Chula Vista) called the Finance and Risk Management Committee meeting to order at 3:01 p.m.
ROLL CALL
PRESENT: Chair McCann (Chula Vista), Director Yamane (National City) ABSENT: Director Aguirre (Imperial Beach)
Also Present: Chief Financial Officer (“CFO”)/Treasurer Washington, General Counsel Tyagi, Deputy Clerk Vences
PLEDGE OF ALLEGIANCE
Director Yamane led the Pledge of Allegiance.
ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED ON THE AGENDA CFO/Treasurer Washington noted that Item No. 3, regarding Approval of Power100 Green-e Certified Service would be withdrawn from the agenda and scheduled for a future FRMC meeting.
MEETING MINUTES – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER –APRIL 11, 2024 2 PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
There were no public comments.
MEETING AGENDA
1. Approve February 15, 2024, Meeting Minutes
ACTION: Motioned by Director Yamane (National City) and seconded by Chair McCann (Chula Vista) to approve the minutes of the Finance and Risk Management Committee meeting held Thursday, February 15, 2024. The motion carried unanimously by the following vote:
Vote: 2-0
AYES: Chair McCann (Chula Vista) and Director Yamane (National City) NOES: None
Abstained: None
2. Review of Treasurer’s Report for Period Ending February 29, 2024 CFO/Treasurer Washington presented the Treasurer’s Report for the period ending February 29, 2024.
Following Committee questions and comments, no action was taken.
3. Recommend Board Approval of Power100 Green-e Certified Service Item No. 3 was withdrawn from the agenda.
Committee Member Announcements
There were no announcements.
ADJOURNMENT
Chair McCann (Chula Vista) adjourned the meeting at 3:11 p.m. to the next Finance and Risk Management Committee meeting scheduled on Thursday, May 16, 2024.
____________________________________
Sandra Vences, Assistant Clerk of the Board
SAN DIEGO COMMUNITY POWER
Staff Report – Item 2
-------------------------------------------------------------------------------------------------------------------- To: San Diego Community Power Finance and Risk Management Committee From: Eric W. Washington, Chief Financial Officer
Via: Karin Burns, Chief Executive Officer
Subject: Review of Treasurer’s Report for Period Ending March 31, 2024 Date: May 16, 2024
--------------------------------------------------------------------------------------------------------------------
RECOMMENDATION
Receive and File Treasurer’s Report for Period Ending March 31, 2024.
BACKGROUND
San Diego Community Power (SDCP) maintains its accounting records on a full accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) as applicable to governmental enterprise funds.
SDCP has prepared its year-to-date financial statements for the period ended March 31, 2024, along with budgetary comparisons.
SDCP additionally reports monthly metrics during its Board meetings as part of its Update on Back-Office Operations. As part of the Treasurer’s Report, certain key metrics related to risk are to be presented during Financial and Risk Management Committee (FRMC) meetings.
On February 22, 2024, the SDCP Board of Directors (Board) approved a mid-year budget amendment for Fiscal Year 2023-24 that included net operating revenues of $1,304,274,067, total expenses of $1,071,601,284, and a resulting net position of $232,672,783. Given that the Board approval occurred on February 22, 2024, the review of the Treasurer’s Report for period ending March 31, 2024, and reports for the remaining fiscal year will include a comparison against the mid-year budget amendment adopted by the Board. Additionally, given that the mid-year budget amendment is very closely aligned with the SDCP ProForma, treasurer’s reports moving forward will no longer include a ProForma comparison.
ANALYSIS AND DISCUSSION
Actual financial results for the period ended 3/31/24: $998.84 million in net operating revenues were reported compared to $1.06 billion budgeted for the period. $810.67 million in total expenses were reported (including $790.83 million in energy costs) compared to $842.22 million budgeted for the period (including $803.66 million budgeted 2 for energy costs). After expenses, SDCP’s change in net position of $188.17 million was reported for Fiscal Year 2023-24. The following is a summary of the actual results compared to the Fiscal Year 2023-24 Amended Budget.
Table 1: Budget Comparison Versus Actual Result
• Net operating revenues finished $66.07 million (or 6.0 percentage points) under the budget primarily due to lower-than-expected customer load corelated with cooler weather in the summer months of 2023.
• Operating expenses finished $31.55 million (or 4.0 percentage points) under the budget primarily similarly due to lower-than-expected customer load corelated with cooler weather in the summer months of 2023.
Figure 1: Proforma versus Actual Results
For the period ending 3/31/24, SDCP contributed $188,172,317 to its net position compared to the expected gain of $222,690,646 per the Fiscal Year 2023-24 amended budget. Total SDCP reserves at the end of the period were $388,527,712 based on cash and cash equivalents – unrestricted, and total available liquidity (including lines of credit) was $501,027,712. SDCP has a total Fiscal Year 2023-24 year-end reserve target of $524,984,866, which is equivalent to 180-days of total operating expenses as set in SDCP’s Strategic Goals.
Budget Comparison
YTD FY24 as of
03/31/24 (9 mos)
FY24 YTD
Amended Budget
Budget Variance
($) Budget (%)
Net Operating Revenues $ 998,841,535 $ 1,064,910,269 $ (66,068,734) 94% Total Expenses $ 810,669,218 $ 842,219,623 $ (31,550,405) 96% Change in Net Position $ 188,172,317 $ 222,690,646 $ (34,518,329) -16% $-
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
Net Operating Revenues Total Expenses Change in Net Position YTD FY24 Results v. Budget
YTD FY24 as of 03/31/24 (9 mos) FY24 YTD Amended Budget 3 Figure 2: Participation Rates as of 5/1/2024
Phase 4 mass enrollment process in National City and Unincorporated County of San Diego for Non-Net Energy Metering (NEM) customers was officially completed as of May 2023. The participation rate for SDCP reflects full enrollment of current member agencies.
We are reporting on the opt outs and eligible accounts associated with the phase based on those accounts that we have noticed for enrollment on a rolling basis as of the reporting month.
Staff is also presenting the state of SDCP Arrearages related to financial risk for FRMC consideration and for regular review. Additional metrics can be added by request. The below arrearage data includes SDCP’s Receivables aged 120+ Days as of 5/1/2024. 4 Figure 3: State of SDCP Arrearages as of 5/01/2024
Figure 4: State of SDCP Arrearages Residential vs Commercial as of 5/01/2024
FISCAL IMPACT
N/A
ATTACHMENTS
Attachment A: 2024 Year-to-Date Period Ended 3/31/24 Financial Statements 1 ACCOUNTANTS’ COMPILATION REPORT
Management
San Diego Community Power
Management is responsible for the accompanying financial statements of San Diego Community Power (a California Joint Powers Authority) which comprise the statement of net position as of March 31, 2024, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements. San Diego Community Power’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
April 29, 2024
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com ITEM 2 ATTACHMENT
Current assets
Cash and cash equivalents - unrestricted 388,527,712$
Cash and cash equivalents - restricted 500,000
Accounts receivable, net of allowance 69,565,566
Accrued revenue 39,591,980
Prepaid expenses 9,251,255
Other receivables 873,033
Deposits 1,901,222
Total current assets 510,210,768
Noncurrent assets
Cash and cash equivalents - restricted 1,147,000
Lease asset, net of amortization 1,347,879
Capital assets, net of depreciation 132,609
Total noncurrent assets 2,627,488
Total assets 512,838,256
Current liabilities
Accrued cost of electricity 125,765,417
Accounts payable 3,940,240
Other accrued liabilities 2,289,261
State surcharges payable 578,353
Deposits - energy suppliers 3,812,500
Interest and finance costs payable 281,693
Lease liability 950,071
Total current liabilities 137,617,535
Noncurrent liabilities
Supplier security deposits 624,000
Lease liability 572,502
Total noncurrent liabilities 1,196,502
Total liabilities 138,814,037
Restricted for collateral 1,647,000
Unrestricted 372,377,219
Total net position $ 374,024,219
NET POSITION
SAN DIEGO COMMUNITY POWER
STATEMENT OF NET POSITION
As of March 31, 2024
ASSETS
LIABILITIES
See accountants' compilation report. 2
OPERATING REVENUES
Electricity sales, net $ 997,761,785
Grant revenue 807,250
Other income 322,200
Total operating revenues 998,891,235
OPERATING EXPENSES
Cost of electricity 790,875,856
Contract services 14,006,692
Staff compensation 8,221,548
Other operating expenses 2,456,015
Depreciation and amortization 505,922
Total operating expenses 816,066,033
Operating income 182,825,202
NON-OPERATING REVENUES (EXPENSES)
Interest income 6,575,706
Interest and financing expense (1,389,020)
Nonoperating revenues (expenses), net 5,186,686
CHANGE IN NET POSITION 188,011,888
Net position at beginning of year 186,012,331
Net position at end of year $ 374,024,219
SAN DIEGO COMMUNITY POWER
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Nine Months Ended March 31, 2024
See accountants' compilation report. 3
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 1,079,731,434$
Receipts of supplier security deposits 34,626,179
Receipts from wholesale sales 16,474,870
Other operating receipts 1,129,450
Payments to suppliers for electricity (748,830,123)
Payments for goods and services (15,447,375)
Payments of staff compensation and benefits (7,862,170) Payments for deposits and collateral (4,304,693)
Payments of state surcharges (1,742,916)
Net cash provided by operating activities 353,774,656
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Principal payments - bank note (35,730,000)
Interest and related expense payments (1,627,931)
Net cash provided (used) by non-capital
financing activities (37,357,931)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments of lease liability (350,466)
Payments to acquire capital assets (71,550)
Net cash (used) by capital and related financing activities (422,016)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 6,349,123
Net change in cash and cash equivalents 322,343,832
Cash and cash equivalents at beginning of year 67,830,880 Cash and cash equivalents at end of year 390,174,712$
Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) 388,527,712$
Restricted cash - current 500,000
Restricted cash - noncurrent 1,147,000
Cash and cash equivalents 390,174,712$
SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS
Nine Months Ended March 31, 2024
See accountants' compilation report. 4
Operating income $ 182,825,202
Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation and amortization expense 505,922
(Increase) decrease in:
Accounts receivable, net 40,948,165
Accrued revenue 39,200,804
Prepaid expenses 21,276,243
Other receivables (412,735)
Deposits 15,755,128
Increase (decrease) in:
Accrued cost of electricity 48,420,074
Accounts payable 3,500,975
Other accrued liabilities (1,505,386)
State surcharges payable 77,764
Supplier security deposits 3,182,500
Net cash provided by operating activities $ 353,774,656
SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS (continued)
Nine Months Ended March 31, 2024
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
See accountants' compilation report. 5
1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
San Diego Community Power
Management is responsible for the accompanying special purpose operating fund budgetary comparison schedule of San Diego Community Power (SDCP), a California Joint Powers Authority, for the period ended March 31, 2024, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of SDCP.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
SDCP’s annual audited financial statements will include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows.
Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to SDCP because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
April 29, 2024
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 2023/24 YTD
Amended
Budget
2023/24 YTD
Actual
2023/24 YTD
Amended
Budget
Variance
(Under) Over
2023/24
YTD
Actual/
Amended
Budget %
2023/24 Annual
Amended Budget
2023/24
Amended Budget
Remaining
REVENUES AND OTHER SOURCES Gross Ratepayer Revenues 1,115,089,287 $ 1,039,335,193 (75,754,094) 93% 1,365,732,007 $ $ 326,396,814 Less: Uncollectible Customer Accounts (50,179,018) (41,573,408) 8,605,610 83% (61,457,940) (19,884,532) Grant Revenue - 807,250 807,250 - (807,250) Other income 272,500 272,500 - (272,500) Total Revenues and Other Sources 1,064,910,269 998,841,535 (66,068,734) 1,304,274,067 305,432,532 OPERATING EXPENSES Cost of Energy 803,659,343 790,826,157 (12,833,186) 98% 1,020,844,552 230,018,395 Professional Services and Consultants 16,950,554 13,376,168 (3,574,386) 79% 22,250,657 8,874,489 Personnel Costs 8,809,332 8,221,548 (587,784) 93% 11,603,394 3,381,846 Marketing and Outreach 2,229,224 1,464,619 (764,605) 66% 2,925,978 1,461,359 General and Administration 5,196,691 1,706,299 (3,490,392) 33% 6,812,564 5,106,265 Programs 88,000 259,518 171,518 295% 115,500 (144,018) Total Operating Expenses 836,933,144 815,854,309 (21,078,835) 1,064,552,645 248,698,336 Operating Income (Loss) 227,977,125 182,987,226 (44,989,899) 239,721,422 56,734,196NON-OPERATING REVENUES (EXPENSES) Investment Income - 6,575,706 6,575,706 - (6,575,706) Interest and Related Expenses (1,795,229) (1,390,615) 404,614 77% (2,393,639) (1,003,024) Transfer to Capital Investment Program (3,491,250) - 3,491,250 0% (4,655,000) (4,655,000) Total Non-Operating Revenues (Expenses) (5,286,479) 5,185,091 10,471,570 (7,048,639) (12,233,730) NET INCREASE (DECREASE) $ 222,690,646 $ 188,172,317 $ (34,518,329) $ 232,672,783 $ 44,500,466
SAN DIEGO COMMUNITY POWER
BUDGETARY COMPARISON SCHEDULE
Nine Months Ended March 31, 2024
OPERATING FUND
See accountants' compilation report.
SAN DIEGO COMMUNITY POWER
Staff Report – Item 4
-------------------------------------------------------------------------------------------------------------------- To: San Diego Community Power Finance and Risk Management Committee From: Lucas Utouh, Senior Director of Data Analytics and Customer Operations Byron Vosburg, Managing Director of Power Services
Via: Karin Burns, Chief Executive Officer
Subject: Recommend Board Approval of Power100 Green-e Certified Service Date: May 16, 2024
RECOMMENDATION
Recommend Board Approval of Power100 Green-e Certified Service.
BACKGROUND
Currently, San Diego Community Power (SDCP) offers two levels of service to our customers: PowerOn, our standard service offering which provides a minimum of 50% renewable power and is competitively priced to San Diego Gas & Electric (SDG&E); and Power100, our premium service that provides customers with 100% renewable and carbon-free energy and is currently priced at $0.0075/kWh on top of PowerOn service.
The cost of Power100 will be adjusted upwards to $0.01/kWh effective as of July 1, 2024, to better reflect the increase in cost of procuring 100% renewable power, as approved by the Board of Directors in January 2024. SDCP is now considering offering a third level of service.
ANALYSIS AND DISCUSSION
Through multiple engagements with our key Commercial and Industrial customers over the past two years, SDCP staff has received feedback that a stand-alone 100% renewable and carbon-free service that is Green-e® certified would be desirable. For these customers, being able to enroll in a Green-e® service would cater to their very specific sustainability and Leadership in Energy and Environmental Design (LEED) rating system goals. For some of these customers, the new level of service could also help them comply with new Securities and Exchange Commission rules to enhance and standardize climate-related disclosures.
LEED is the world's most widely used green building rating system. LEED certification provides a framework for healthy, highly efficient, and cost-saving green buildings, which offer environmental, social and governance benefits. LEED certification is also a globally 2 recognized symbol of sustainability achievement, and it is backed by an entire industry of committed organizations and individuals paving the way for market transformation.
LEED-certified buildings and premises are critical to addressing climate change and meeting environmental, social, and governance (ESG) goals, enhancing resilience, and supporting more equitable communities. LEED is a holistic system that does not simply focus on one building element, such as energy, water or health. Instead, it looks at the big picture, factoring in all critical elements that work together to create the best building possible. The goal of LEED is to create better buildings that:
• Reduce contribution to global climate change;
• Enhance individual human health;
• Protect and restore water resources;
• Protect and enhance biodiversity and ecosystem services; • Promote sustainable and regenerative material cycles; and • Enhance community quality of life.
LEED goals are aligned with those of SDCP. One of the very tangible ways in which SDCP can assist our customers in achieving a LEED certification is by creating a Power100 Green+ service that will allow for their project/building needs to earn points through adherence to prerequisites and credits that address carbon, energy, water, waste, transportation, materials, health and indoor environmental quality. As part of the LEED points, specifically as it pertains to renewable energy, customers can choose one or more strategies for renewable energy procurement from the categories below. Points achieved in each category may be added for a total of 5 points. • Tier 1: On-site renewable energy generation
o On-site renewable energy generation, environmental attributes (e.g., Renewable Energy Credits) retained
• Tier 2: New off-site renewable energy
o Off-site renewable electricity that is produced by a generation asset(s) built within the last five years or contracted to be operational within two years of building occupancy
o Green-e® Energy certification or equivalent is required for one-time purchase and delivery of energy attribute certificates (EACs) of more than 100% of the project’s annual electricity use
• Tier 3: Off-site renewable energy
o Off-site renewable electricity that is Green-e® Energy certified or equivalent or captured bio-methane
Therefore, as part of SDCP’s commitment and responsiveness to its customers in meeting their sustainability goals, staff is proposing that the Board of Directors approve this new service offering effective as of July 1, 2024. This new product will be priced as a $0.02/kWh adder to the PowerOn service and will allow SDCP customers to earn LEED Tier 2 or 3 points in the renewable energy category. Initially, the Power100 Green+ would only be available to Commercial & Industrial customers and SDCP staff expects 3 approximately 2% of its load would enroll. SDCP staff will re-evaluate the service if enrollment approaches 5% of the load.
AD-HOC COMMITTEE AND/OR SUBCOMMITTEE REVIEW
N/A
FISCAL IMPACT
SDCP estimates $3.2 million in annual revenue based on the proposed $0.02/kWh adder for the Power100 Green+ service offering. These estimates were additionally factored into the fiscal projections reviewed by the Board on January 18, 2024, as part of the item for Approval of SDCP’s 2024 Rates Schedule. Staff additionally note that there are compliance and administrative costs associated with the new service offering.
If approved, revenue and costs for the Power100 Green+ service offering will be included in the proposed FY 2024-25 operating budget that is planned to be reviewed by the Board on May 23, 2024, and on June 27, 2024.
ATTACHMENTS
N/A