Board of
Directors
Special Meeting
December 12, 2024
Welcome
and
Call to
Order
Roll
Call
4 Land
Acknowledgement
6 Warm Welcome!
Mark Alfaro
Finance Manager
Items to
be Added,
Withdrawn
or
Reordered
on the
Agenda
Public
Comment
for Items
not
on the
Agenda
9 Consent
Calendar
1. Approve November 21, 2024, Meeting Minutes
2. Receive and File Treasurer’s Report for Period Ending September 30, 2024
3. Receive and File Update on Programs
4. Receive and File Update on Power Resources
5. Receive and File Update on Customer Operations
6. Receive and File Update on Human Resources
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
10. Receive and File Update on San Diego Community Power Network Request for Qualifications
11. Adoption of Resolution No. 2024-12, A Resolution of the Board of Directors of San Diego Community Power
Designating Dates, Time, and the Location for Regular
Meetings for Calendar Year 2025
12. Annual Energy Usage Voting Share Update
Public
Comment
for
Consent
Agenda
11 Regular
Agenda
13. Approve a Contract in Substantially Similar Form to Attachment A for the Enterprise Data Platform (EDP)
Development and Deployment with Harman Connected
Services, Inc. for a Not-to-Exceed Amount of $850,000 Over Twelve Months, and Authorize the Chief Executive Officer to Execute the Contract
14. Approve a Contract with the San Diego Padres for
Marketing, Promotional, Outreach, Educational and other Sponsorship-Related Activities in an Amount Not-to-Exceed $882,700 from January 1, 2025, through October 31, 2027, and Authorize the Chief Executive Officer to Execute the Contract
15. Approval of Allocation from PG&E of GHG-Free attributes from Diablo Canyon Nuclear Power Plant for 2025-2030
16. Update on 2025 Projected Rate Changes
17. Approve the Marketing Community Initiative Partnership with TEGNA through December 31, 2025, in an Amount Not-to-Exceed $174,044, and Authorize the Chief Executive Officer to Execute the Agreement
12 Item No. 13
Recommendation:
Approve a contract for Enterprise Data Platform (EDP) development and deployment with Harman Connected Services, Inc. for a not-to-exceed amount of $850,000 over twelve months, and authorize the Chief Executive Officer to execute the contract.
Presenter:
Ryan Hanke, Data Analytics Manager
Approve a Contract in Substantially Similar Form to Attachment A for the Enterprise Data Platform (EDP) Development and Deployment with Harman Connected Services, Inc. for a Not-to-Exceed Amount of $850,000 Over Twelve Months, and Authorize the Chief Executive Officer to Execute the Contract
13 Enterprise Data Platform Summary
What is it?
- Secure, scalable, cloud-based data
platform for customer, billing, and meter
data
What will it do?
- Centralize data from various vendors and
data sources
- Enable advanced analytics and insights
to support SDCP
Why is it needed?
- Will allow us to serve reporting and
analytics needs as SDCP grows
- Allows Community Power to understand
our customers, revenue and load so that
we can retain customers, ensure revenue
collection, and forecast to make informed
decisions
14 Enterprise Data Platform RFP Timeline
Release of
RFP
Questions
Due
Proposals
Due
Anticipated
Approval
Proposal
Review
Vendor
Interviews
Contract
Negotiation
Aug 23 Sept 6
Question
Period
Proposal
Period
Proposals
Scored
Sept 30 Oct 14 - 18 Dec 12
15 Harman Connected Services, Inc
• Over two decades of experience building various large scale data platforms for consumers • Experience with utility datasets including Meter data management • Expertise in Data architecture and engineering, Analytics, Technology Architecture, Data Science and Gen AI • Expertise in implementing GCP and AWS (Amazon Web Services) best practices (Well Architected Framework) & AWS consulted solution architecture.
16 Scope
Primary Use Cases in Scope:
1. Centralized Customer Account Database with History
2. Centralized Customer Usage Database
3. Centralized Customer Billing Database
4. 360 Customer View
5. KPI Tracking
6. Data Clustering/Grouping/Profiling
7. Data Monitoring
8. Outlier Detection
9. Forecasting
10.Weather-Normalization
11.Weather Scenarios
12.Standardized Mailing Address
Secondary Use Cases in Scope:
1. Short Term Load Forecasting
2. Long Term Load Forecasting
3. Long Term Revenue Forecasting
Tasks:
1. Administration
2. Platform Development and Deployment
3. Analytics and Report Development for
Primary Use Cases
4. Analytics and Report Development along
with SDCP for Secondary Use Cases
5. Support
17 Timeline
Milestone Timelines Deliverable
Assessment & Analysis End of week 4 BRD, Environment setup, Implementation Plan Iteration 1 Release End of month 3.5 Deployment and Release of Iteration 1 to Pre prod Iteration 2 Release End of month 5.5 Deployment & Release of Iteration 2 to Pre-Prod Iteration 3 Release to production
(Go-Live)
End of month 7.5 Completion of Cybersecurity & penetration testing and Go-Live
SD Community Power Transition &
Handover
End of month 8.5 Transition Sign-off and SD Community Power user training completed
Schedule of Project – Proposed Project Plan
Public
Comment
for Item
No. 13
19 Item No. 14
Approve a Contract with the San Diego Padres for Marketing, Promotional, Outreach, Educational and other Sponsorship-Related Activities in an Amount Not-to-Exceed $882,700 from January 1, 2025, through October 31, 2027, and Authorize the Chief Executive Officer to Execute the Contract Recommendation:
Approve a contract with the San Diego Padres for marketing, promotional, outreach, educational and other sponsorship-related activities in an amount not to exceed $882,700 from January 1, 2025, through October 31, 2027, and authorize the Chief Executive Officer to execute the contract.
Presenter:
Lee Friedman, Senior Strategic Partnerships Manager
20 Background
• In effort to build brand recognition and trust,
Community Power’s marketing strategy
includes sponsorships/partnerships with
local institutions
• Community Power entered into first
sponsorship agreement with Padres in
August 2021 and subsequently into a two-season agreement from 2023 through 2024 • Current proposed sponsorship agreement
would cover seasons 2025 through 2027
21 Padres 2023 Season Metrics Recap
Videoboard and Grandstand Bugs Fixed Homeplate Pad Sign • Padres increased average attendance per game from 36,879 in 2022 to 40,915 in 2023 (including franchise record 61 sellout games) – total season attendance exceeding 3.2 million fans. • The Padres ranked as #1 in attendance based on park capacity and #2 in total attendance in the MLB • Padres social media engagement remains highly ranked across MLB and has #2 follower engagement in Instagram with 1.1 million followers
22 Padres 2023 Season Metrics Recap
Tonight’s Lights Pre-Game LED
Community Power Crowd Noise Meter
Performance Snapback Giveaway
Social Media Posts and Email Blasts
• 40,000 Padres fans in
attendance received
branded Community
Power hat
23 Padres 2023 Press Conference
24 Padres 2024 Season Metrics Recap
Videoboard and Grandstand Bugs Fixed Homeplate Pad Sign • Padres increased average attendance per game from 40,915 in 2023 to 41,118 in 2024 (franchise record) • The Padres still ranked as #1 in attendance based on park capacity and set an all-time franchise record of 3,314,593 total attendance
25 Padres 2024 Season Metrics Recap
Tonight’s Lights Pre-Game LED
Community Power Crowd Noise Meter
Performance Snapback Giveaway
Social Media Posts and Email Blasts
• 40,000 Padres fans in
attendance received
branded Community
Power hat
26 Padres 2024 Power100 Champions Branding
100% Renewable Power Branding On Ballpark Escalators
100% Renewable Power Branding On L-BAR
• Padres total season attendance exceeds 3.2 million fans and averaged 41,118 fans per game in 2024
27 Padres 2025-27 Sponsorship Terms • [NEW] San Diego Section – Presenting Sponsor of high school baseball and softball display located inside Petco Park.
Will receive branding on permanent display and be presenting partner of the Padres High School All Star Game & Home Run Derby, Padres High School Coach of the Year and co-presenting sponsor of Coach of the Week • [NEW] Activation Kiosk – On-site activation in the San Diego Section during four Padres games throughout the season • Tonight’s Lights – Pregame show announcement with Community Power as the Proud Power Provider of the San Diego Padres
• L-Bar Branding – Branding on all in-stadium televisions for a half season • Fixed Home Plate Padding – Fixed sign on padding to the left of the rotational signage behind home plate for one mutually agreed upon Padres game each season
• Energy Meter Custom Feature – Presenting partner of the Energy Meter crowd feature • Giveaway Item / Activation Kiosk – Presenting sponsor of one giveaway item during each season, and the opportunity for on-site activation during the game when the giveaway item is distributed • Email & Social Media Post – Inclusion of marketing or education material in one dedicated email blast and one social media post each season
• First Pitch – Entitled to have one representative throw out an honorary first pitch at one mutually agreed upon Padres Game each season
• Hospitality - $5,000 ticket bank
28 Thank you, and Go Padres!
Public
Comment
for Item
No. 14
30 Item No. 15
Approval of Allocation from PG&E of GHG-Free attributes from Diablo Canyon Nuclear Power Plant for 2025-2030
Recommendation:
Elect to accept Community Power’s allocation from PG&E of GHG-Free attributes from Diablo Canyon Nuclear Power Plant for 2025 through 2030 and authorize the Chief Executive Officer to execute the associated transaction confirmations via annual allocation processes, or as otherwise required.
Presenter:
Stephen Gunther, Regulatory Manager
Byron Vosburg, Chief Commercial Officer
31 Legislative Background
• Diablo Canyon Nuclear Power Plant (DCPP)
• Owned and operated by Pacific Gas & Electric (PG&E)
• Located in San Luis Obispo County
• Combined generation capacity of 2,240 megawatts (MW)
• Began operating in 1985; scheduled to be decommissioned in 2024/25 • Senate Bill 846 (Dodd)
• Signed into law in 2022 extending the operation of the DCPP until October 31, 2029 (Unit 1) and October 31, 2030 (Unit 2)
• Rationale: address reliability challenges in the wake of the extreme heat events of August 2020 while avoiding increases in greenhouse gas (GHG) emissions • Costs: Given the extension is intended to meet the state’s reliability needs, SB 846 authorizes the costs to be collected through a non-bypassable charge applicable to the customers of all load-serving entities under the jurisdiction of the California Public Utilities Commission (CPUC), including San Diego Community Power
Source: calmatters.org/environment/2023/03/diablo-canyon-nuclear-power-plant/ 32 California Public Utilities Commission
Decision on Costs and Benefits
On December 14, 2023, the California Public Utilities Commission adopted a decision directing and authorizing extended operations at Diablo Canyon Nuclear Power Plan pursuant to Senate Bill 846 and ruling on implementation details.
• Costs for extended operations will be borne by all ratepayers through a non-bypassable charge, allocated to each Load Serving Entity using the Cost Allocation Methodology based on 12- month coincident demand.
• The Commission agreed with CalCCA and other parties that it is fair and reasonable for the benefits to be allocated to all customers already paying for extended operations.
Costs
Non-bypassable charge
to all ratepayers
allocated to Load Serving
Entities,
including Community
Power customers
Resource Adequacy Benefits
Automatically allocated to Load Serving Entities by the California Public Utilities Commission as a reduction in load obligations
Greenhouse gas-free Attributes Benefits
Voluntary allocations for Power Content Label
purposes Load Serving Entities can choose to accept
33 Greenhouse Gas-Free Attributes Process
Pacific Gas & Electric (PG&E) shall offer to Load Serving Entities (LSEs) that are paying for extended operations of Diablo Canyon Nuclear Power Plant (DCPP) the ability to use their share of DCPP’s greenhouse gas (GHG)-free attributes for their power content label.
The existing process for voluntarily offering the GHG attributes of certain resources to LSEs should be used as a model.
PG&E will receive percentage allocations from the California Public Utilities Commission by November each year.
PG&E will reach out to LSEs to determine whether they will accept their allocation by January 1 of the year.
Community Power must elect to accept or deny the allocation of GHG-free attributes for use on its Power Content Label.
Note: Unclaimed allocations, if any, would be unused for that delivery year and would not be reported on any individual Load Serving Entity power content label or other communications. 34 Impact of Accepting the Allocation
Does acceptance of the allocation...
...increase
costs for
Community
Power?
No, Community Power customers
are paying for Diablo Canyon
Nuclear Power Plant (DCPP)
through a non-bypassable charge
either way.
...impact the
operations of
DCPP?
No, DCPP will operate through
2029/30 as mandated by state
law.
...make an
impact on
Community
Power?
The Diablo Canyon Nuclear
Power Plant allocation will make
reporting on the Power Content
Label more transparent by
acknowledging the:
• Percentage of nuclear power
as part of the mix
• Reduction in carbon intensity
35 Market Value and Fiscal Implications
• Community Power allocation:
4.84% of DCPP output
– Total DCPP output: ~18,000,000 MWh/year
~900,000 MWh to Community Power
~12% of PowerOn/Power Base
~20% reduction in GHG emissions intensity in PowerOn and PowerBase portfolios • Nuclear allocation “market value”: 900,000 MWh at $10-15/MWh = ~$10-12 MM/year • Reduction of carbon-free hydro purchases from 5% to 0%: ~$12 MM/year savings 36 Recap
Summary of Key Facts
• Community Power customers are already paying for the extension of DCPP, which was decided by state law, through a separate non-bypassable charge on energy bills • DCPP is operational, providing over 2 GW of baseload power to the CA grid, and will remain operational through 2030 as mandated by state law (Community Power has no say over the operation of the plant) • Community Power has already received Resource Adequacy (RA) benefits (~$40MM annually) directly through the CPUC due to a reduction in RA purchase obligations from the nuclear allocation for reliability • Accepting the GHG-free attributes would:
• Reduce the carbon intensity of our PowerOn and PowerBase products by ~20% • If paired with a reduction in carbon-free purchases from existing hydroelectric resources, reduce costs by ~$12M annually
• Not impact Power100 or Power100 Green+ products, which include only renewable energy • Not impact any of Community Power’s targets, contracts, or commitments regarding renewable energy content 37 Recommended Portfolio Actions
• Accept, at no additional cost, full allocation of 4.84% of DCPP carbon-free nuclear attributes for 2025-2030; and
• Reduce PowerOn and PowerBase carbon-free hydro targets to zero for the same period to save ~$12MM/year
Public
Comment
for Item
No. 15
39 Item No. 16
Update on 2025 Projected Rate Changes
Recommendation:
Receive and File 2025 Projected Rate Changes Update.
Presenter:
Aaron Lu, Rates and Strategy Manager
40 2025 Rates Timeline
Board adopted rates,
effective February 1, 2024.
January 18, 2024
SDG&E submitted its
Application for Approval of its
2025 Electric Sales Forecast.
May 15, 2024
Board adopted Power100
Green-e certified product
and Powerbase service,
effective July 1, 2024.
May 30, 2024
SDG&E filed October Update
to 2025 Electric Sales
Forecast.
October 21, 2024
SDG&E filed November
Prelim. 2025 Consolidated
Rates.
November 15, 2024
Staff provided update to CAC
& Board on 2025 rate
projections.
December 5, 2024 and
December 12, 2024
SDG&E’s implements its
2025 generation rates and
the Power Charge
Indifference Adjustment.
January 1, 2025*
Community Power's Board
adopts 2025 rates, effective
February 1, 2025.
January 23, 2025*
*SDG&E filed an extension request to the Commission on Dec. 9, 2024 to implement rates on Feb. 1, 2025, to allow for additional time to include 2024 General Rate Case revenue requirements and to reduce rate volatility. 41 Rate Development Policy Objectives:
• Cost Recovery,
• Reserves,
• Rate Competitiveness and Customer Value,
• Rate Stability,
• Equity Among Customers,
• Rate Structure Simplicity and Comparability,
• Transparency,
• Avoidance of Cost Shifting, and
• Cost of Service.
Rate-Setting Process Overview
42 Rate-Setting Process Overview
• Generation costs
• SDG&E Delivery costs
• Additional fees
• Power Charge Indifference Adjustment (PCIA) includes above-market costs related to power supply commitments that the utilities made many years ago. • Franchise fees is a surcharge applied to electricity transported over SDG&E systems that are constructed in public streets and highways. All customers i.e., bundled and un-bundled, are assessed Franchise Fees.
What are the components of Community Power rates?
43 • Equality means an individual or a group of
people is given the same resources or
opportunities.
• Equity recognizes that each person has
different circumstances and allocates the exact
resources and opportunities needed to reach
an equal outcome.
• This trifurcation will maintain a fair, equitable,
and balanced rate structure that does not
create winners and losers across our
customers.
Rate Setting Mechanics
Equality vs. Equity:
44 • Community Power's Phase 1 and 2
customers (vintage 2020), Phase 3
customers (vintage 2021), and Phase 4
customers (vintage 2022) are all
charged a different Power Charge
Indifference Adjustment (PCIA) by
SDG&E because they are enrolled in
different “vintage” years.
• Due to the substantial deltas expected
between PCIA vintages 2020, 2021, and
2022, staff will recommend to the Board
trifurcation of three sets of rates in 2025.
Rate Setting Mechanics
Competitive Factor (Discount) 3% 3% 3%
Rates ($/kWh) Vintage 2020 Vintage 2021 Vintage 2022
SDG&E Commodity Rate 0.1800 0.1800 0.1800
PCIA -0.0051 0.0027 0.0364
Franchise Fees 0.0020 0.0020 0.0020
Resulting Illustrative SDCP Rate 0.1777 0.1700 0.1362
Illustrative Rate Setting Process Based On Trifurcation -0.0500
0.0000
0.0500
0.1000
0.1500
0.2000
SDG&E Commodity Rate PCIA Franchise Fees Resulting Illustrative SDCP Rate
Rates ($/kWh)
Rate Trifurcation By Vintage
Vintage 2020 Vintage 2021 Vintage 2022
45 Illustrative SDG&E commodity rates, effective 01-01-2025 • SDG&E’s system avg. commodity rates are projected to increase by 6.20%. • The primary drivers for the increase in commodity rates is adjustments between SDG&E’s balancing accounts and impacts from its General Rate Case. 2025 Commodity Rate Projections
Customer Class 1/1/2023 1/1/2024 3/1/2024 10/1/2024* 1/1/2025** 1/1/2025*** 1/1/2023 - 1/1/2024 1/1/2024 - 3/1/2024 3/1/2024 - 10/1/2024 10/1/2024 - 1/1/2025 Residential 0.1967 0.1514 0.1517 0.1517 0.1519 0.1622 -23.03% 0.19% 0.00% 6.96% Small Commercial 0.1742 0.1283 0.1285 0.1285 0.1288 0.1385 -26.34% 0.19% 0.00% 7.78% M/L C&I 0.2039 0.1578 0.1581 0.1581 0.1578 0.1660 -22.61% 0.18% 0.00% 5.04% Agricultural 0.1455 0.1120 0.1122 0.1122 0.1116 0.1174 -23.00% 0.18% 0.00% 4.61% Lighting 0.1286 0.0991 0.0993 0.0993 0.0995 0.1063 -22.92% 0.19% 0.00% 7.07% System Total 0.1947 0.1499 0.1502 0.1502 0.1503 0.1595 -23.03% 0.19% 0.00% 6.20% * SDG&E 10/1/2024 rate change did not revise commodity rates and PCIA. ** SDG&E proposed 1/1/2025 rates from Oct. 2025 ERRA Update, filed 10/21/2024. ** *SDG&E proposed 1/1/2025 rates from Nov. Consolidated Rates Filing, filed 11/15/2024.
SDG&E Avg. Commodity Rate ($/kWh) SDG&E Avg. Commodity Rate Change (%) 46 • Staff continues to monitor updates from SDG&E & CPUC throughout the remainder of the year and into 2025.
• SDG&E commodity rates and PCIA rates, that will go into effect on 01-01-2025, will not be finalized until the last week of December.
• Staff will recommend to the Board to adopt a rate change in January. • A few key early considerations are as follows:
• Due to variation in PCIA for vintage years, staff will continue to recommend trifurcated rates.
• Final SDG&E commodity costs and PCIA rates will determine the trajectory of SDCP’s proposed 2025 rates.
Next Steps
Public
Comment for
Item No. 16
48 Item No. 17
Approve the Marketing Community Initiative Partnership with TEGNA through December 31, 2025, in an Amount Not-to-Exceed $174,044, and Authorize the Chief Executive Officer to Execute the Agreement
Recommendation:
Approve the Marketing Community Initiative Partnership with TEGNA through December 31, 2025, in an amount not to exceed $174,044, and Authorize the Chief Executive Officer to execute the agreement.
Presenter:
Jen Lebron, Director of Public Affairs
49 Background
Working for Our Community Partnership
• TEGNA owns local news stations
CBS8, KFMB and NFMB, which have
an initiative that highlights local
nonprofits and all they do for the
greater San Diego community.
• Community Power entered into a one-year agreement as part of the "Working for Our Community"
partnership in January 2024.
50 Agreement highlights Long-form segments that explain what Community Power is and how it is making
an impact on San Diegans
30- and 15-second advertisements that
encourage customers to take advantage
of Community Power benefits that will air
on San Diego CBS and CW affiliate
television stations and streaming services
A 30-minute special on CBS8+,a
streaming service
Promos for the special CBS8.com home page take over Billboards 51 Creative summary
52 Half-hour specials
53 Agreement metrics
5,036,374 household impressions from TV and streaming in first nine months 54 ZIP codes with largest audience shares
1.91911 – Chula Vista
2.91910 – Chula Vista
3.92154 – Otay Mesa
4.91913 – Otay Ranch
5.92139 – Bay Terraces
6.92113 – Logan Heights
7.91942 – La Mesa
8.92024 - Encinitas
9.91950 – National City
10.91941 – La Mesa
55 Recommendation:
Approve the Marketing Community Initiative Partnership with TEGNA through December 31, 2025, in an amount not to exceed $174,044, and Authorize the Chief Executive Officer to execute the agreement.
Public
Comment
for Item
No. 17
Report by
Chief
Executive
Officer
Directors'
Comments
Adjournment
Next Regular
Board of Directors Meeting
January 23, 2025