Board of
Directors
Regular Meeting
May 23, 2024
Welcome
&
Call to
Order
Roll
Call
4 Land
Acknowledgement
Proclamation for outgoing Community
Advisory Committee member
Anna Webb
Items to
be Added,
Withdrawn
or
Reordered
on the
Agenda
Public
Comment
for Items
NOT
on the
Agenda
9 Consent
Agenda
1. Approve April 25, 2024, Meeting Minutes
2. Receive and File Treasurer’s Report for Period
Ending March 31, 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 Update on Regulatory and
Legislative Affairs
9. Receive and File Update on Community Advisory
Committee
Public
Comment
for
Consent
Agenda
11 Regular
Meeting
Agenda
10. Consideration and Approval of Community Advisory Committee (CAC) Appointment for the City of Imperial Beach
11. Receive and File Update on IT and Data Analytics
12. Presentation of Draft FY2024-25 Budget
13. Approve the Contract for Professional Services for Marketing, Communications, Website Redesign and Website Maintenance with JSR Strategies in the Not-to-Exceed Amount of $500,000 Over Two Years with Options for Two, One-Year Extensions with Not-to-Exceed Amounts of $200,000 for Each Subsequent Year
14. Approve Energy Storage Service Agreement with Euismod Project I, LLC
15. Approve Financially Settled Toll and Energy Storage Agreement with MRP Pacifica Marketing LLC for Hybridization of Border Facility
16. Approve Financially Settled Toll and Energy Storage Agreement with MRP Pacifica Marketing II LLC for Hybridization of Enterprise Facility 12 Item 10
Consideration and Approval of Community
Advisory Committee (CAC) Appointment for the
City of Imperial Beach
Recommendation:
Approve appointment to the Community Advisory
Committee (CAC) for the City of Imperial Beach.
Presenter:
Jack Clark, Chief Operating Officer
13 Membership Criteria & Selection Process
• The Community Advisory Committee (CAC) includes 2 members from each member agency.
• Appointments are to prioritize residents from diverse social, economic and racial backgrounds that are representative of all residents within SDCP's service territory.
• Staff promoted the vacancy via social media, the Board of Directors, the CAC, and directly engaging with member agency staff and the public in Imperial Beach; and worked with Director Aguirre to review and determine a nomination for appointment based on Membership Terms & Criteria.
• Director Aguirre has nominated Kenneth Hoyt.
Public
Comment
for Item 10
15 Item 10
Consideration and Approval of Community
Advisory Committee (CAC) Appointment for the
City of Imperial Beach
Recommendation:
Approve appointment to the Community Advisory
Committee (CAC) for the City of Imperial Beach.
Presenter:
Jack Clark, Chief Operating Officer
16 Item 11
Receive and File Update on IT and Data Analytics
Recommendation:
Receive and File update on IT and Data Analytics
Presenter:
Kiran Singh, Director of Data Analytics and IT
SDCP Data
Analytics &
IT
Building a World Class IT & Data
Organization to deliver clean energy for
local communities with global impact
Kiran Singh, Director of IT and Data
Analytics
May, 2024
18 Table of
Contents
19 Executive Summary
A robust technology and data strategy, and successful execution of it has delivered business transformation for many organizations world-wide and has proved to be a game changer in providing customer benefits.
San Diego Community Power (SDCP) is on a path to deliver 100% clean energy by 2035 or sooner to the consumers within its territories and is committed to its mission. SDCP’s goal of sustained enrollment and excellent financial standing requires efficient and low-cost operations. This deck shares options and technology strategy to enable SDCP to deliver on its commitment to SDCP Board Of Directors (BOD) and to its communities.
The plan shared in this deck includes opportunities through which SDCP would build technology and analytics capabilities.
As a growing organization, we must have effective and low-cost operations, and in-house IT & Data capabilities would help achieve these goals and sustain market volatility. 20 Discovery
Process
22 Current State - SDCP Data & IT Landscape
Goals: Collect current state info
Current enterprise IT & data
landscape
Current organization wide
initiatives
Current pain points
Goals: Assess current state.
Understand system capabilities,
cyber risks, resource allocations,
data privacy standards
Understand & prioritize
organization-wide initiatives
Understand & prioritize issue
resolutions to serve
Goals: Meeting of minds
Strategic approach to developing
a world class modern IT & Data
org
Reliable, trusted & scalable
systems that enable growth &
innovation
IT structures & processes that
empower enterprise teams
Discovery Assessment Desired State
23 Assessment Kickoff
of current state
Current State - Roadmap & Plan
Templates for discovery
Timeline & Schedule –
Enterprise wide discovery
Identify resources to
execute on D/A/D
Assessment
& socialization
Desired State – discussions &
consensus w/ E-team and
leadership
Mobilization with extended
broader team, Change MGT plan
Training of resources
Strategy &
Execution/Roll
Out Plan
November, 2023 December, 2023 Jan, 2024
Current State Discovery
process
Assessment
25 Key systems and essential capabilities
SDCP staff needs to succeed and deliver on
clean energy goals
26 SDCP Growth in Numbers
Current State – Findings
500+ Hardware
Equipment
50+
Software
2x growth in staff $ in revenue,
doubled
Enrollments #, up
26+%
10+ community
programs
19 internal
initiatives
4000
Customer calls/
month
Estimated annual technology and data spend is $20Million + 27 Pain points and challenges impacting SDCP Value Proposition Current State – Findings
Issues impacting strategic value:
Cost of operations
Enrollment sustainability
Market volatility
Community visibility & expectation
Talent acquisition
SDG&E impact
Higher cost of living in SD
Access to data for broader visibility & strategic decision-making Customer connections & experience
Issues impacting operations & efficiencies
Manual processes hurting emp experience & burn out,
Risk and governance issues due to third-party dependencies Number of software applications in use
Lack of enterprise standard software for core
business operations
Large pool of hardware & Software but no tool for tracking No consistent way to track vendors for deliveries
Limited use of data for analytics and reporting
Data quality, governance, approval process to access info or prevent unauthorized access.
Opportunities
29 Current State – Assessment
Opportunities – Simplifications, Transformation and Effectiveness Organizational Structure
– Evolution, steering
towards industry
standards
Efficiencies via
simplification and
governance – processes
and frameworks
Business optimization by
right-sourcing aligning
insourcing of core
business operations
Business
Transformation
underpinned by Digital
& Data Transformation
1 4 3
2 30
Business Transformation underpinned by
Digital & Data Transformation
Stabilization, Transform and Innovate
1 2024+ IT Plan
Cyber security controls
Digitization of tracking &
monitoring of SDCP assets
Work management
Insource IT Services &
Users Support
Develop Business
Applications Portfolio
Digitization of business operati
ons
Consolidation of Software
applications
Cost Visibility
Modernize to
improve employee experience
Unlock Value Through
Data
Build SDCP data
platform
Centralization of internal
& external data
Analytics roadmap
Enable responsible AI
31 Impact - Digital & Data Transformation
Increased efficiency, greater operational agility and, ultimately, the unlocking of new value for staff, customers and agency constituents.
• Drive growth by digitizing
and rewiring operational processes
• Build and provide right tools to operate.
• Work management tools – Plan ahead and
be ready for market changes, reduce rework
• Drive sustainability efforts through
innovative technologies
• Improve collaboration within and across
functions – ETRM, CRM and customer
connections
• Single source of truth
• Improve Time-to-Market using SDCP's
own secure data platform
• Improve the customer experience – use
data driven approach
to proactively respond to customer
needs
• Improving staff experience
and driving cultural change to reduce
manual touch points
• Robust internal IT eco-system to deliver
higher staff productivity.
• Improve support and service quality
• Cost containment
and cost reduction on vendor spend.
• Ensure adequate protection from
cyber threats and provide cyber
security to everyone
• Self-reliant and reduce dependency
on external vendors for core operations.
32 ETRM
Business optimization by right-sourcing
aligning insourcing of core business operations
Right-sourcing and insourcing would require prioritization and growth strategy Right-sourcing and insourcing strategy & roadmap
• Reduce dependencies on external vendors
• Build core capabilities internally & evolve
• Better functional controls and change management
• Right behavior - Cost-Benefit-Risk analysis
• Documented Operational models and visibility to on-going costs 2 33
Impact - Business optimization
Better insights into core business activities, controls and improved time to market
• Reliance on technology and application eco-system such as Customer Relation Management and Energy Trade Risk Management for business operation vs depends on vendors • Evolve and mature business processes
• Reduce manual touches and automate
• Digital transformation and do more with less
• Controller of SDCP data
• Deliver AI and analytics using SDCP data
34 Organizational Structure – steering towards
industry standards
Growth requires structures and framework for efficiencies Market
sustainability
SDCP
operational
model
Toolset Clear Roles &
Responsibilities
Clear
Departmental
Strategy
3 35
Impact - Organizational Structure
Clear visibility, efficient work allocation, prioritization, innovation, caring of staff and focus on goals.
• Standard operating procedure leading to better decision-making. • Processes removing ambiguity and continuous improvement • Roles and responsibility leading to staff retention
• Improved collaboration leading to higher productivity • Effective functional organization that allows goal alignment • Staff morale and focus on SDCP goals
36 Efficiencies via simplification and governance –
processes and frameworks
Simplifying processes and governance would lead to staff effectiveness Structures & Processes
Policy & Governance
Vendor Oversight/audit
4 37
Impact - Efficiencies via simplification and governance Governance, effectiveness, strategic, readiness to respond to market volatility • Manage external complexity with the governance and policy • Effective and powerful strategies to navigate through complexities • Better organizational performance
• Organized vendor selection and management
• Focus on local jobs and sustainability
38 CY 2024
COST VISIBILITY
CY 2025
COST CONTAINMENT
Roadmap
IT Strategy - Short-term, Long-term
Process workshops w/ dept leaders -> business operations Cyber Security/safety strategy – awareness, workshop & monitoring IT Budgets &
Funding model
Simplification strategy – App Standarization
Asset & Work MGT Tools – POC, Decision, funding & deployment Data Platform Strategy
Modernization & Improved employee experience
Platform reference architecture delivery
Prioritize business
drivers
Analytics outcomes & operational
strategy
Resource/Hiring Strategy - procurement
and SOW
Data Analytics team structure
Data Analytics Operational Model & funding
Cyber Security strategy – Revisit, new measure
Analytics execution plan & priorities
ETRM – RFP, Product selection & Deployment strategy
REN – CRM, Data collection, System building & external/SDGE Collaborations Asset & Work MGT- Cost Controls measures
Operational & Cost Efficiencies – predictions delivery
IT Support Streamlining – IT RFP, transition and tracking Responsible & Ethical AI – Use Cases, CoPilot, ChatBot Data Science & ML opportunities – use cases & strategy ETRM – Implementation, Operations and support
IT Long-term Strategy – Capabilities review
Review IT Budgets &
Funding model
Platform execution & analytics delivery
39 Future State – Impact
Simplifications, Transformation and Effectiveness
Staff retention and productivity
Focus on sustainability and effective management of external complexities
Focus on customer and clean energy goals
1 Local jobs
4 3
2 Thank You
41 Assessment Kickoff
of current state
Current State - Roadmap & Plan
Templates for discovery
Timeline & Schedule –
Enterprise wide discovery
Identify resources to
execute on D/A/D
Assessment
& socialization
Desired State – discussions &
consensus w/ E-team and
leadership
Mobilization with extended
broader team, Change MGT plan
Training of resources
Strategy &
Execution/Roll
Out Plan
November, 2023 December, 2023 Jan, 2024
Current State Discovery
process
Public
Comment
for Item 11
43 Item 11
Receive and File Update on IT and Data Analytics
Recommendation:
Receive and File update on IT and Data Analytics
Presenter:
Kiran Singh, Director of Data Analytics and IT
44 Item 12
Presentation of Draft FY2024-25 Budget
Recommendation:
Receive and File Draft FY2024-25 Budget.
Presenter:
Tim Manglicmot, Senior Finance Manager
45 Budget Highlights
Thoughtfully scales the agency by adding
24 staff to grow to 80 total staff.
Continued outreach through community
events, sponsorships and educational
opportunities to raise public awareness of SDCP.
Rescoping Professional Services
Operating
Budget Development for FY 2024-25
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
Financial and Risk
Management
Committee Review
SDCP Board Approval
July 1st Budget
Implemented
Mid-year budget
review (February)
Budget amendments
as necessary
47 Budget Principles for FY 2024-25
• Maintain a fiscally responsible and sustainable
budget.
• Maintain sufficient funds and reserves to
sustain operations while considering future
economic conditions.
• Provide an easier to understand and user-friendly operating budget for both internal and external users.
• Develop budget within framework of public-agency guidelines and best practices. • 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.
48 Draft Budget – Summary
Item FY 24 Amended
Budget, $M
FY 25 Draft Budget,
$M
Gross Revenue 1,365.7 1,223.9
Less Uncollectible Accounts (61.5) (55.1)
Net Revenue 1,304.3 1,168.8
Cost of Energy 1,020.8 1,059.1
Non-Energy Costs 43.8 54.1
Subtotal Operating Expense 1,064.6 1,113.2
Debt Service 2.4 2.5
Capital Investment Plan 3.9 10.3
Total Expense 1,071.0 1,126.0
Net Position 233.3 42.8
Cumulative Net Position 419.3 462.1
95% Cost of Energy
49 Draft FY 2025-29 Capital Investment Plan (CIP)
5-year planning document for tracking program spending over multiple years and non-recurring project costs
Leverages state and federal funding
Inform region of community anticipated needs
Key projects in the CIP:
Solar Battery Savings Program
Regional Energy Network
CIP
50 Draft Budget – Reserves
Operating Budget, $M FY21 FY21 FY22 FY23 FY24 FY25
Net Revenue 0.0 14.8 386.3 891.6 1,304.3 1,168.8
Total Expense 1.1 27.8 329.7 748.2 1,071.0 1,126.0
Annual Reserve (Net Position) (1.1) (13.0) 56.6 143.4 233.3 42.8 Cumulative Net Position (1.1) (14.0) 42.5 186.0 419.3 462.1 180-Day Expense 0.5 13.7 162.6 369.0 530.7 576.4
(1.1) (13.0)
56.6 143.5
233.3 42.8
0 200
400
600
800
1,000
1,200
1,400
1,600
FY20 FY21 FY22 FY23 FY24 FY25
Net Position
Total Expenses
Cumulative Net Position
180-Day Expense
$M
Historical Proposed
51 Draft FY 2024-25 Budget
Budget Changes by Category
Revenue
Cost of Energy
Enrollment complete. Board approved
rate change in January 2024.
All contracts updated. Forward energy
prices updated for open positions.
FY24
$1,365.7m
FY24
$1,020.8m
Professional
Services
Personnel
Marketing and
Outreach
General and
Administrative
FY25
$1,223.9m
FY25
$1,059.1m
Calpine higher with full enrollment.
ETRM included. IT managed services,
procurement counsel increased.
FY24
$22.3m
FY25
$25.1m
Recruitment strategy of 24 new staff
growing the agency to 80 total staff.
FY24
$11.7m
FY25
$17.9m
Customer interface improvements, slight
increases to Partnerships and Events &
Sponsorships.
FY24
$2.9m
FY25
$3.3m
Increased G&A budget to support
operating and staff growth anticipated for
FY25.
FY24
$6.8m
FY25
$7.7m
Programs Programs budget included in CIP as
continuing projects. Overall admin in
operating.
FY24
$0.1m
FY25
$0.1m
52 Draft 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 56 - - - - -
Data Analytics and IT/
Customer Operations 6 21 15 17 9 9
Executive Team - 5 8 4 6 4
Finance 1 5 12 5 2 5
Human Resources 1 5 3 5 1 1
Operations - 6 1 3 7 -
Power Services 6 7 14 12 9 5
Programs 4 19 6 12 7 4
Regulatory and
Legislative/Legal 3 11 11 8 6 2
Public Affairs 3 16 8 9 8 4
Total 80 95 78 75 49 38
53 Draft 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 1,006,961 1,393.30 67.51 1,585.29 88% San Diego Community
Power Oct 2019 921,471 1,059.10 54.10 1,168.80 91%
East Bay Community Energy Dec 2016 643,275 753.52 56.62 962.74 78% Marin Clean Energy Dec 2008 586,296 688.76 45.55 787.86 87% Central Coast Community
Energy Mar 2018 445,377 520.30 42.54 562.83 92%
Peninsula Clean Energy Feb 2016 309,994 437.86 56.71 466.93 94% *Source: CalCCA as of December 2023
**CPA from 5/16/24 Community Advisory Committee FY25 draft budget. SDCP from proposed FY25 budget. EBCE from 5/8/24 Finance Subcommittee FY25 draft budget. MCE from 3/21/24 Board meeting FY25 proposed budget. PCE from 5/13/14 Audit and Finance Committee FY25 draft budget. 3CE from FY24 adopted budget.
Public
Comment
for Item 12
55 Item 12
Presentation of Draft FY2024-25 Budget
Recommendation:
Receive and File Draft FY2024-25 Budget.
Presenter:
Tim Manglicmot, Senior Finance Manager
56 Item 13
Approve the Contract for Professional Services for Marketing, Communications, Website Redesign and Website Maintenance with JSR Strategies in the Not-to-Exceed Amount of $500,000 Over Two Years with Options for Two, One-Year Extensions with Not-to-Exceed Amounts of $200,000 for Each Subsequent Year Recommendation:
Approve the contract in substantially similar form to Attachment A for professional services for Marketing, Communications, Website Redesign and Website Maintenance with JSR Strategies in the not-to-exceed amount of $500,000 over two years with options for two, one-year extensions with not-to-exceed amounts of $200,000 for each subsequent year.
Presenter:
Jill Monroe, Senior Manager Marketing & Communications
57 Marketing, Communications, Website Redesign &
Maintenance RFP Design
Group 1 Services:
• Agency Branding, Design, Messaging and Identity
• Marketing and Advertising Campaigns
• Project Management & Tracking Performance Metrics
• Agency Branding, Design, Messaging and Identity Transition (Optional) Group 2 Services:
• Website Redesign, Content Development and Maintenance • Website Transition (Optional)
58 Marketing, Communications, Website Redesign &
Maintenance RFP Timeline
RFP Issued
March 5
Pre-Proposal
Webinar
March 14
Respond to
Questions
March 21
Submission
Date
April 10
Proposal
Review
April 10 - 22
Interviews
April 26 & 29
Contract
Negotiation
Ongoing
Anticipated
Approval
May 23
59 60
61 62
63 Public
Comment
for Item 13
65 Item 13
Approve the Contract for Professional Services for Marketing, Communications, Website Redesign and Website Maintenance with JSR Strategies in the Not-to-Exceed Amount of $500,000 Over Two Years with Options for Two, One-Year Extensions with Not-to-Exceed Amounts of $200,000 for Each Subsequent Year Recommendation:
Approve the contract in substantially similar form to Attachment A for professional services for Marketing, Communications, Website Redesign and Website Maintenance with JSR Strategies in the not-to-exceed amount of $500,000 over two years with options for two, one-year extensions with not-to-exceed amounts of $200,000 for each subsequent year.
Presenter:
Jill Monroe, Senior Manager Marketing & Communications
66 Item 14
Approve Energy Storage Service Agreement with
Euismod Project I, LLC
Recommendation:
Approve Energy Storage Service Agreement with Euismod
Project I, LLC for a 200 MW (4-hour) Battery Energy System Storage (BESS) facility.
Presenter:
Byron Vosburg, Managing Director Power Services
67 Eusimod: Project Summary
• 200MW/800MWh (4-hour) lithium-ion battery
• Location: Kern County
• Developer: Aypa
68 Eusimod: Key Terms
• Product: Full toll and Resource Adequacy benefits
• Pricing: Fixed for a 15-year term
• Timeline: Guaranteed Commercial Operation Date is June 1, 2028 • Deliverability: Contract is contingent on Aypa obtaining delivery for the Eusimod project via the CAISO Transmission Planning Process in 2024 or 2025
• SDCP would receive financial compensation in the event of seller’s failure to successfully achieve certain development milestones as well as seller’s failure to meet guaranteed storage capacity, availability, and efficiency rates.
69 Eusimod: Staff Analysis
• Project would contribute to SDCP’s reliability and capacity targets • Pricing is competitive with comparable RA offers received from SDCP’s recent RFPs. • Aypa Power, formerly known as NRStor C&I, was founded in Toronto in 2017 with its first project coming online in 2018. In March of 2020, the business was acquired by Blackstone and changed its name to Aypa Power.
• Aypa has 33 solar and lithium-ion battery energy storage projects either under construction or in operation to date, with 18 projects in various stages of development in California. 70 Eusimod: Workforce Development & Community
Benefits
• The project is estimated to create approximately 180 construction jobs and 12 permanent jobs
• Aypa will require that the energy, procurement and construction contractor utilize a Project Labor Agreement
• The project has committed $100,000 to a community benefit fund to benefit SDCP customers
Public
Comment
for Item 14
72 Item 14
Approve Energy Storage Service Agreement with
Euismod Project I, LLC
Recommendation:
Approve Energy Storage Service Agreement with Euismod
Project I, LLC for a 200 MW (4-hour) Battery Energy System Storage (BESS) facility.
Presenter:
Byron Vosburg, Managing Director Power Services
73 Item 15
Approve Financially Settled Toll and Energy
Storage Agreement with MRP Pacifica Marketing
LLC for Hybridization of Border Facility
Recommendation:
Approve Financially Settled Toll and Energy Storage Agreement with MRP Pacifica Marketing LLC for a thermal resource including 51.25 MW of Resource Adequacy and a co-located 52 MWh Battery Storage (“Border Project”) and authorize execution by CEO.
Presenter:
Asikeh Kanu, Portfolio Manager
Byron Vosburg, Managing Director Power Services
74 SDCP RA Procurement
• Long-term RA agreements provide cost and capacity certainty in SDCP’s portfolio
• Long-term agreements provide developers with a certain revenue stream against which they can finance up-front capital requirements, incentivizing new incremental renewable energy and storage buildout. • This project came through the rolling local RFI and SDCP’s 2024-2026 RA solicitation.
75 Border Project Summary
• 52MW/52MWh (1-hour) lithium-ion battery (new construction) • 51.25 MW natural gas-fired facility (legacy plant)
• Location: Otay Mesa, CA (San Diego County)
• Interconnection: CAISO (Border Substation)
76 Border: Key Terms
• Products: SD-IV Local RA & Financial Toll
• Pricing: Fixed for a 15-year term
• Timeline: RA start date is January 1, 2026. Guaranteed Commercial Operation Date (BESS & financial toll) is June 1, 2026. • Deliverability: RA is associated with the legacy asset and is not contingent on construction of the BESS.
• SDCP would receive financial compensation in the event of seller’s failure to successfully achieve certain development milestones as well as seller’s failure to meet guaranteed resource adequacy guarantees once the project is operational.
77 Border: Staff Analysis
• This project would contribute to SDCP’s resource adequacy contracting goals providing local, 24/7 and flex attributes. These attributes address SDCP’s compliance requirements.
• Pricing is competitive with comparable product offerings received from SDCP’s recent RFPs. The long-term purchase of resource adequacy will provide SDCP with value and cost certainty over the term of this agreement. • MRP is an experienced developer with 6 GW of projects under management nationally, including 491 MW of hybrid peaker projects under construction or in advanced development with four other CCAs
• Operation of the BESS should “cannibalize” operation of the legacy thermal asset. Legacy plant currently operates at a 3-5% capacity factor. BESS operation is envisioned decreasing operation of thermal asset by half or more at the start and to continue decreasing annually.
78 Border: Workforce Development and Community Benefits • MRP has committed to use an EPC contractor that will enter into PLA agreement to build the resource.
• Project development will bring approximately 20 clean-energy jobs throughout construction with one job remaining during operations. • The project will help displace gas-fired generation at the peaker located on-site (Otay Mesa)
• The project has committed $125,000 to a community benefit fund to benefit SDCP customers.
Public
Comment
for Item 15
80 Item 15
Approve Financially Settled Toll and Energy
Storage Agreement with MRP Pacifica Marketing
LLC for Hybridization of Border Facility
Recommendation:
Approve Financially Settled Toll and Energy Storage Agreement with MRP Pacifica Marketing LLC for a thermal resource including 51.25 MW of Resource Adequacy and a co-located 52 MWh Battery Storage (“Border Project”) and authorize execution by CEO.
Presenter:
Asikeh Kanu, Portfolio Manager
Byron Vosburg, Managing Director Power Services
81 Item 16
Approve Financially Settled Toll and Energy
Storage Agreement with MRP Pacifica Marketing II
LLC for Hybridization of Enterprise Facility
Recommendation:
Approve Financially Settled Toll and Energy Storage Agreement with MRP Pacifica Marketing II LLC for a thermal resource including 48.04 MW of Resource Adequacy and a co-located 52 MWh Battery Storage (“Enterprise Project”) and authorize execution by CEO.
Presenter:
Asikeh Kanu, Portfolio Manager
82 SDCP RA Procurement
• Long-term RA agreements provide cost and capacity certainty in SDCP’s portfolio
• Long-term agreements provide developers with a certain revenue stream against which they can finance up-front capital requirements, incentivizing new incremental renewable energy and storage buildout. • This project came through the rolling local RFI and SDCP’s 2024-2026 RA solicitation.
83 Enterprise Project Summary
• 52MW/52MWh (1-hour) lithium-ion battery (new construction) • 48.04 MW natural gas-fired facility (legacy plant)
• Location: Escondido, CA (San Diego County)
• Interconnection: CAISO (Escondido Substation)
84 Enterprise: Key Terms
• Products: SD-IV Local RA & Financial Toll
• Pricing: Fixed for a 15-year term
• Timeline: RA start date is January 1, 2026. Guaranteed Commercial Operation Date (BESS & financial toll) is December 1, 2026. • Deliverability: RA is associated with the legacy asset and is not contingent on construction of the BESS.
• SDCP would receive financial compensation in the event of seller’s failure to successfully achieve certain development milestones as well as seller’s failure to meet guaranteed resource adequacy guarantees once the project is operational.
85 Enterprise: Staff Analysis
• This project would contribute to SDCP’s resource adequacy contracting goals providing local, 24/7 and flex attributes. These attributes address SDCP’s compliance requirements.
• Pricing is competitive with comparable product offerings received from SDCP’s recent RFPs. The long-term purchase of resource adequacy will provide SDCP with value and cost certainty over the term of this agreement. • MRP is an experienced developer with 6 GW of projects under management nationally, including 491 MW of hybrid peaker projects under construction or in advanced development with four other CCAs
• Operation of the BESS should “cannibalize” operation of the legacy thermal asset. Legacy plant normally operates at a 3-5% capacity factor (1.5% in 2023). BESS operation is envisioned decreasing operation of thermal asset by half or more at the start and to continue decreasing annually. 86 Enterprise: Workforce Development and Community Benefits • MRP has committed to use an EPC contractor that will enter into PLA agreement to build the resource.
• Project development will bring approximately 20 clean-energy jobs throughout construction with one job remaining during operations. • The project will help displace gas-fired generation at the peaker located on-site (Escondido)
• The project has committed $125,000 to a community benefit fund to benefit SDCP customers.
Public
Comment
for Item 16
88 Item 16
Approve Financially Settled Toll and Energy
Storage Agreement with MRP Pacifica Marketing II
LLC for Hybridization of Enterprise Facility
Recommendation:
Approve Financially Settled Toll and Energy Storage Agreement with MRP Pacifica Marketing II LLC for a thermal resource including 48.04 MW of Resource Adequacy and a co-located 52 MWh Battery Storage (“Enterprise Project”) and authorize execution by CEO.
Presenter:
Asikeh Kanu, Portfolio Manager
Report by
Chief
Executive
Officer
Report by
General
Counsel
Director
Comments
Adjournment
Next Special
Board of Directors Meeting
May 30, 2024