Board of
Directors
Special Meeting
May 30, 2024
Welcome
&
Call to
Order
Roll
Call
4 Land
Acknowledgement
6 Special
Meeting
Agenda
1. Adopt a Power100 Green-e
Certified Product and
Approve its Rate
2. Adopt a PowerBase Service
and Approve its Rates
7 Item 1
Adopt a Power100 Green-e Certified Product and
Approve its Rate
Recommendation:
Recommendation: Adopt a Power100 Green-e
Certified Product and approve its pricing as a
$0.02/kWh adder to the PowerOn service.
Presenters:
Aaron Lu, Sr. Rates & Strategy Analyst
Lucas Utouh, Sr. Director Data Analytics & Customer Operations 8 Background
SDCP currently offers two levels of services.
PowerOn – standard service offering with a
minimum of 50% renewable power
Power100 – premium service with 100%
renewable and carbon-free power
• $0.0075/kWh adder
• Adjusted to $0.01/kWh as of July 1, 2024
9 Customer Feedback and Needs
LEED Certification and SEC Disclosures
• Commercial and industrial customers desire a stand-alone 100% renewable and carbon-free Green-e® certified service
• Cater to Leadership in Energy and Environmental Design (LEED) rating goals • LEED is the world’s most widely used green building rating system • Power100 Green+ will allow for project/buildings to earn LEED renewable energy points towards certification
• Cater to Securities and Exchange Commission (SEC) rules to enhance and standardize climate-related disclosure 10 Power100 Green-e Certified
Service Offering Details
• Effective as of July 1, 2024.
• This new service will be called Power100 Green+
• Priced as a $0.02/kWh adder to PowerOn.
• Initially available to commercial and industrial customers. • Expects 2% of load will enroll; enrollment will be capped at 5% of load unless modified by the Board. • Fiscal Impact:
• $3.2 million in net annual revenue.
• Estimate factored into fiscal projections reviewed and approved by the Board in SDCP’s 2024 Rates Schedule.
• Sourced primarily from resources under long-term contract to SDCP: Duran Mesa (wind), IP Oberon (solar), Vikings Energy Farm (solar)
Public
Comment
for Item 1
12 Item 1
Adopt a Power100 Green-e Certified Product and
Approve its Rate
Recommendation:
Recommendation: Adopt a Power100 Green-e
Certified Product and approve its pricing as a
$0.02/kWh adder to the PowerOn service.
Presenter:
Aaron Lu, Sr. Rates & Strategy Analyst.
Lucas Utouh, Sr. Director Data Analytics & Customer Operations. 13 Item 2
Adopt a PowerBase Service and Approve its Rates
Recommendation:
Adopt PowerBase, a product available to no more than 15% of SDCP customer load that will not be available as a
member agency-wide default service product, and approve the PowerBase rates in Attachment A to become effective on July 1, 2024.
Presenter:
Tim Manglicmot, Sr. Finance Manager
Lucas Utouh, Sr. Director Data Analytics & Customer Operations 14 Customer Choice and Needs
Balance competitive rates with SDCP financial stability • Proposal enhances customer choice and meets the diverse needs of SDCP customers with a focus on affordability
• Proposal intends to mitigate opt-outs and assist in maintenance and accrual of reserves
• Initially offer rates that are 2.5% lower than SDGE’s existing default service commodity rates that are effective as of March 1, 2024 • Closely aligned with the State of California’s Renewable Portfolio Standards (RPS)
15 98%
96% 96% 96% 96% 96%
95% 95%
94% 94%
93% 93%
92%
91%
90% 90% 90% 90%
87%
86% 86%
84%
83%
76%
70%
75%
80%
85%
90%
95%
100%
San Jose Clean Energy
CleanPowerSF
Peninsula Clean Energy
Rancho Mirage Energy Authority
San Diego Community Power
Silicon Valley Clean Energy
Ava Community Energy
Clean Energy Alliance
3CE
Santa Barbara Choice Energy
Clean Power Alliance
Prime
Pomona Choice Energy
Redwood Coast Energy Authority
Palmdale EPIC Energy
Lancaster Energy
San Jacinto Power
Valley Clean Energy
MCE
Apple Valley Choice Energy
Sonoma Clean Power
Pioneer Community Energy
Desert Community Energy
OCPA
Participation Rates by CCA
98% Retention
SJCE maintains the highest
participation rate among CCAs
+8% Differential
SJCE’s rates were +8% higher than Pacific Gas and Electric GreenValue
SJCE’s released GreenValue when
rates were +8% more expensive
PowerBase
PowerBase can retain customers
similar to SJCE.
Source: https://cal-cca.org/. Current as of December 2023. 16 Projected
FY 2024-25 Budget Net Revenue Total Expenses Net Income Current $ 1,138,002,518 $ 1,097,896,502 $ 40,106,017
Proposed $ 1,177,925,889 $ 1,137,634,546 $ 40,291,343
Difference $ 39,923,370 $ 39,738,044 $ 185,326
SDCP Financial Impacts
• The PowerBase product preserves
customer participation which by
comparison to other CCAs is difficult
to rebuild once it declines.
• In FY 2024-25, staff do not anticipate
a substantial impact to net income if
PowerBase is approved.
17 PowerBase
Service Offering Details
• Initially offer rates that are 2.5% lower than SDGE’s existing default service commodity rates that are effective as of March 1, 2024.
• Not eligible for member agency-wide default service changes. • Capped at no more than 15% of participating load; when 10% participation by load is reached, staff will return to the Board.
• Supports SDCP’s mission to provide an affordable option that is cleaner than the competition.
• Supports SDCP’s mission to achieve 100% renewable energy by 2035 or sooner through customer retention, especially for price sensitive customers. 18 Bill Impacts
Residential
Please note that individual customers’ actual bill impacts will vary with usage per month, by climate zone etc. 19 Bill Impacts
Small Commercial
Rate: ALTOU (Secondary Voltage)
Large Commercial SDGE PowerBase SDCP PowerOn SDCP Power100 Savings:PowerBase Vs. SDGE Generation $3,335.32 $3,660.86 $4,011.34 $4,256.72
*PCIA $385.00 -$34.60 -$34.60 -$34.60
*Franchise Fees $91.80 $91.79 $91.79 $91.79
$3,812.12 $3,718.05 $4,068.53 $4,313.91 -2.5%
SDGE Delivery $4,625.38 $4,624.89 $4,624.89 $4,624.89
Total Average Monthly Cost $8,437.50 $8,342.94 $8,693.42 $8,938.80 -1.1% Average Monthly Usage (kWh) 24,538
Average Monthly Demand (kW) 67.6
Vintage 2020
Please note that individual customers’ actual bill impacts will vary with usage and demand per month, by climate zone etc. 20 Bill Impacts
Large Commercial
Rate: ALTOU (Secondary Voltage)
Large Commercial SDGE PowerBase SDCP PowerOn SDCP Power100 Savings:PowerBase Vs. SDGE Generation $3,335.32 $3,660.86 $4,011.34 $4,256.72
*PCIA $385.00 -$34.60 -$34.60 -$34.60
*Franchise Fees $91.80 $91.79 $91.79 $91.79
Total Generation Related Charges $3,812.12 $3,718.05 $4,068.53 $4,313.91 -2.5% SDGE Delivery $4,625.38 $4,624.89 $4,624.89 $4,624.89
Total Average Monthly Cost $8,437.50 $8,342.94 $8,693.42 $8,938.80 -1.1% Average Monthly Usage (kWh) 24,538
Average Monthly Demand (kW) 67.6
Vintage 2020
Please note that individual customers’ actual bill impacts will vary with usage and demand per month, by climate zone etc.
Public
Comment
for Item 2
22 Item 2
Adopt a PowerBase Service and Approve its Rates
Recommendation:
Adopt PowerBase, a product available to no more than 15% of SDCP customer load that will not be available as a
member agency-wide default service product, and approve the PowerBase rates in Attachment A to become effective on July 1, 2024.
Presenter:
Tim Manglicmot, Sr. Finance Manager.
Lucas Utouh, Sr. Director Data Analytics & Customer Operations.
Adjournment
Next Regular
Board of Directors Meeting
June 27, 2024