Community
Power
Orientation
January 17, 2025
Welcome
3 Agenda: • Who we are: Overview of Community Power's mission and vision • Board of Directors and Community Advisory Committee responsibilities • Community Power's formation and customer base
• Current Community Power initiatives
• Power purchasing
• Financial stability
• Competitive rate setting
• Customer programs
• Statewide policy influence
• Local community engagement
• Strengthening and streamlining internal operations
• Strategic planning
• Next steps
Who we are:
Community Power’s
Mission and Vision
5 Mission — To provide affordable clean energy and invest in the community to create an equitable and sustainable future for the San Diego region 6 Vision — To become a global leader and inspire innovative solutions to climate change by powering our communities with 100% affordable clean energy while prioritizing equity and sustainability
7 Our core values
The "JIST" of Community Power:
• Justice, Equity, Diversity and Inclusion (JEDI)
• Impact
• Integrity
• Innovation
• Servant Leadership
• Togetherness
8 How it works
Community Power ➜
purchase electricity from
renewable sources
SDG&E ➜
delivers power and manages
services
You
enjoy cleaner power at
competitive rates
9 Executive Team introduction
Karin Burns
Chief Executive Officer
Eric Washington
Chief Financial
Officer/Treasurer
Jack Clark
Chief Operating Officer
Veera Tyagi
General Counsel
Byron Vosburg
Chief Commercial
Officer
Board of Directors
and Community
Advisory Committee
responsibilities
11 Who does San Diego Community Power serve?
12 Our primary Board of Directors (as of Feb. 16)
Michael Inzunza
Chula Vista
City Councilmember
Luke Shaffer
Encinitas
City Councilmember
Paloma Aguirre
Imperial Beach
Mayor
Genevieve Suzuki
La Mesa
City Councilmember
Ditas Yamane
National City
City Councilmember
Sean Elo-Rivera
San Diego
City Councilmember
Terra Lawson-Remer
San Diego County
Interim Board Chair
13 Our alternate Board of Directors (as of Feb. 16)
Jose Preciado
Chula Vista
City Councilmember
Bruce Ehlers
Encinitas
Mayor
Jack Fisher
Imperial Beach
City Councilmember
Lauren Cazares
La Mesa
City Councilmember
Marcus Bush
National City
City Councilmember
Joe LaCava
San Diego
City Council President
TBD
San Diego County
Supervisor
14 Key Board responsibilities
As Community Power’s governing body, the Board of Directors:
• Set retail rates for power generation (transmission and delivery costs set by SDG&E and approved by the Public Utilities Commission and are not included in our rates) • Adopt a budget
• Conduct and oversee audits
• Approve power procurement and other contracts
• Set policies for procuring electric supply and non-delegated operational needs • Develop and implement a strategic plan
• Establish committees and appoint members, including the Community Advisory Committee 15 Finance and Risk Management Committee
Paloma Aguirre
Imperial Beach
Mayor
Ditas Yamane
National City
Vice Mayor
Vacant as of
December 2024
16 Key Finance and Risk Management Committee responsibilities The Finance and Risk Management Committee (FRMC) is a subcommittee of the Board • Provide input and oversight on the agency’s funding plan and budgets • Review financial and risk policies
• Receive detailed information about the agency’s financial performance • Make recommendations to the full board regarding financial matters The three FRMC members:
17 Community Advisory Committee Members
Chula Vista
• Anthony Sclafani (First term ends 2025)
• Vacant since January 2024
Encinitas
• Gary L. Jahns (Second term ends 2025)
• Tara Hammond (Second term ends 2026)
Imperial Beach
• Kenneth Hoyt (First term ends 2025)
• Ilian Sandoval (First term ends 2026)
La Mesa
• David Harris (Second term ends 2026)
• Vacant since December 2024
National City
• Aida Castañeda – Secretary (First term ends 2025)
• Lawrence Emerson – Vice Chair (Second term
ends 2026)
San Diego
• Luis Montero-Adams (First term ends 2025)
• Matthew Vasilakis – Chair (Second term ends
2026)
Unincorporated San Diego County
• Peter Andersen (First term ends 2025)
• Vacant since July 2023
18 Key Community Advisory Committee responsibilities
The Community Advisory Committee (CAC) is composed of two community members per agency.
• Advise the Board of Directors and engage in
public conversations about residents’ views on the
strategic direction, goals and programs of
Community Power
• Represent the views, concerns, priorities, and
needs of their member agencies and the larger
community, including equity, diversity and
inclusion initiatives
• Support and attend community outreach events
CAC members:
• Support information sharing to
community members about current rates,
goals and available community programs
• Adopt an annual work plan that aligns
with defined, Board-approved objectives
and scope to assist in decision-making
• Provide monthly reports and quarterly
updates to the Board on CAC activities
and recommendations
How did we get here?
Community Power’s
formation
20 Community choice in
California
• 25 operating programs, 200 cities and counties
• 14,000+ megawatts of clean energy power signed
by community choice aggregation programs
• More than 14 million customers served by
community choice energy organizations in
California
21 Not-for-profit organizations account for more
than half of California’s energy
Source: 2023 IEPR Forecast. California Energy Demand 2023-2040 Forecast - Planning Forecast Energy Provider 2024 Deliveries
(GWh)
Investor-owned utility 82,686
Community Choice Aggregation 63,743
Direct Access 28,672
Publicly-owned utility 70,795
Total statewide electricity
deliveries 245,895
22 What are CCAs doing to reduce electricity costs?
• On-bill savings: In 2023 alone, Community Choice Aggregators collectively saved their customers $760 million compared to non-CCA counterparts via long-term power purchase agreements.
• Leveraging the power of “green” bonds: The California Community Choice Financing Authority has issued nearly $10 billion in prepayment bonds, saving CCA customers about $60 million per year and accelerating the clean energy transition
• Programs to help customers lower bills: CCAs design programs that help customers realize the benefits of the clean energy transition and reduce their electric costs
23 How it happened:
Community Power’s enrollment timeline
Phase 1 – March 2021:
600+ Municipal
accounts
Phase 2 – June 2021:
72,000+ Commercial
& Industrial accounts
Phase 3 (Res & NEM) –
February 2022:
Imperial Beach
Phase 3 –
March 2022:
La Mesa
Phase 3 –
April 2022:
Encinitas
Phase 3 – May 2022:
San Diego and
Chula Vista
Phase 4 – April 2023:
County of San Diego,
National City
Who we serve today
25 Community Power participation
Total customer
accounts served: 955,094
Total load: ~ 8,000,000 MWh/year
Percentage of load in
California for scale:
~ 5%
26 Member agency participation as of Dec. 30, 2024
Current
Community Power
Initiatives
Power Purchasing
Byron Vosburg
Chief Commercial Officer
29 Energy Procurement goals
• Renewable Portfolio Standard (RPS)
• Long-term Contract Requirements
• Resource Adequacy (RA)
• Integrated Resource Planning (IRP)
• Voluntary Renewable Targets
• Local Development Goals
• Energy Risk Management Policy
The Power Services team oversees Community Power’s energy portfolio, ensuring:
Compliance
• Energy Costs directly impact rates
• FY25 Budget:
⚬ ~$1.18 billion revenue
⚬ ~$1.07 billion power cost (91%)
• Every “above market” expense
reduces contribution to net position
• Market price risk
• Counterparty credit risk
• Development risk
• Technology risk
• Locational risk
• Temporal risk
Value Risk Management
30 Community Power C
Renewable energy
Total Community C
Power Retail Sales
CA RPS C
Minimum Requirement
Renewable energy goals
Community Power’s RPS goals are more aggressive than the California State mandate. Some local jurisdictions have goals that are earlier than Community Power’s.
Renewables Portfolio Standard (RPS): A policy that requires energy providers to supply a minimum amount of energy from renewable sources. 31 Energy market fundamentals and challenges
Energy markets are volatile and correlated to natural gas prices 32 What is Resource Adequacy?
Resource Adequacy (RA) is “backup” power needed during heat waves and other high-energy usage events to avoid blackouts
• RA requirements are set by the
California Independent Systems
Operator (CAISO) and California
Public Utilities Commission
• Capacity in is extremely tight, so it’s
critical that Community Power find
new resources and creative solutions
to ensure compliance and reliability
33 2035 (forecast)
70+%
Energy from long-term, fixed-price PPAs
2028 (forecast)
~55%
2024
7%
Solutions: Power Purchase Agreements (PPAs)
Power Purchase Agreements (PPAs) are contracts in which a buyer, such as Community Power, purchases electricity from a third party at a fixed rate, typically for 10 to 20 years
• Long-term PPAs are a key tool in
Community Power’s mission to meet
Renewable Portfolio Standard and
Resource Adequacy goals affordably
and sustainably
• Ultimate benefit: Rate stability and
predictability for customers
34 Operational PPAs Developer Technology Gen MW Storage MW Commercial Operation Date (COD) Duran Mesa Pattern Wind 50 Feb. 2022
Oberon Intersect PV 75 June 2023
Pomona 2 Ormat BESS 9 January 2024
Vikings Arevon PV + BESS 138.8 145.5 June 2024
Arrowleaf Ormat PV + BESS 42 35 July 2025
Yellow Pine 3 NextEra PV + BESS 35 35 June 2027
Vidal Aypa PV + BESS 160 160 Dec. 2026
CVEC2 Wellhead BESS 49.7 June 2026
Avocet Arevon BESS 200 April 2026
JVR BayWa PV + BESS 90 70 Oct. 2026
Sunzia Pattern Wind 150 Oct. 2026
Pelicans Jaw SBE PV + BESS 440 238.5 April 2027
Purple Sage Primergy PV + BESS 400 400 June 2027
Purple Sage Primergy PV + BESS 400 400 June 2027
Border Middle River BESS 51.25 Jan. 2026
Border Middle River BESS 51.25 Jan. 2026
Enterprise Middle River BESS 48.04 Jan. 2026
Enterprise Middle River BESS 48.04 Jan. 2026
Renewable Power Purchase Agreement portfolio
Since its inception Community Power has signed:
• 13 long-term PPAs for
1,670 MW of renewable
energy, enough energy to
power 795,700 homes
• 14 contracts for 1,960 MW
of energy storage capacity,
the equivalent of 476,900
homes’ peak usage
Financial Stability for
Agency Longevity
Dr. Eric Washington
Chief Financial Officer/Treasurer
36 Historical Days’ Liquidity, $M FY20 FY21 FY22 FY23 FY24 Net Revenue 0.0 14.8 386.3 891.2 1,264.4
Total Expense 1.1 27.8 329.7 747.7 1,075.0
Annual Net Position (1.1) (13.0) 56.6 143.5 189.4
Cumulative Net Position (Reserves) (1.1) (14.1) 42.5 186.0 375.4 180-Day Expense 0.5 13.7 162.6 368.7 530.1
$530.1M
180-Days Cash on Hand FY24 Target
$375.4M
FY24 YTD Reserves
Enrollment of
First Five
Cities
Enrollment of
Last Two
Jurisdictions
Building a strong financial foundation
Financial stability ensures our start-up agency becomes a lasting institution (1.1) (13.0)
56.6 143.5
189.4
37 180-Day Target
$556.0 million
FY25 Reserve Target
Power Purchase
Agreements
Rate Stability
Debt Issuance
Long-Term
Financial Health
Programs
Leveraging
Funds
November 2024
$417.2 million
Current Reserve Level
Community Power’s strategic goal is to achieve
180-days cash on hand by October 2025
Strong reserves for a resilient agency
Reserves are more than a rainy-day fund
38 Aggregate Bond Principle
$1.0 billion
1ˢᵗ Transaction
Actual Discount
12.0%
Annual Savings
$6.8M
Prepay benefits and savings
• Reduce cost of power
purchases by 8% or more
per prepayment transaction
Goal
• Leverage use of tax-exempt bonding capacity
to secure long-term supply
• Codified in the U.S. tax law
• Used since the 1990s largely for
natural gas transactions
• Over 100 transactions totaling over
$75 billion completed in the U.S. –
mostly for gas
How Background
39 Cost Recovery
Rate Simplicity
Transparency
Avoid Cost-Shifting
Reserves
Rate
Competitiveness
Rate Stability
Equity
Cost of Service
• Adopt a plan to increase
reserves to $175M by Oct.
2023 (90-Days Cash On
Hand) and $360M by Oct.
2025 (180-DCOH).
• Obtain an investment
grade credit rating
• Develop Rate Stabilization
Reserve of $70M
Pillars of financial goals
Rate Setting Objectives Strategic Goals
Competitive
Rate Setting
Jack Clark
Chief Operating Officer
41 Rate-setting process overview
What are the components of Community Power rates?
• 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 42 Year Count of SDG&E Generation Rate Changes* Count of Community Power Generation Rate Changes 2024 2 1
2023 1 1
2022 2 1
2021 5 2
2020 3 N/A
2019 4 N/A
*Per effective date changes observed in historical SDG&E’s Schedule Electric Energy Commodity Cost (EECC).
We set our rates for predictability
Community Power typically sets its rates once per year
43 Our rates and service options
We want to empower customers to make choices about their electricity, whether they want to invest in the cleanest, most renewable power available or seek a lower-cost option PowerBase
45% renewable
PowerBase is our most affordable
service plan and is 45% renewable.
PowerOn
51% renewable
PowerOn is our standard service plan
and is 51% renewable.
Power100
100% renewable and carbon-free
Power100 is our premium service plan
and is 100% renewable and carbon-free.
Power100 Green+
100% renewable and carbon-free
Power100 Green+ is 100% renewable,
carbon-free, Green-e certified for
businesses looking to meet LEED
standards.
Customer Programs
Jack Clark
Chief Operating Officer
45 Community
Power Plan
Community
goals, needs,
and priorities
Organizational
goals, needs, and
priorities
Existing programs
and awareness
Funding
availability
Prioritize programs that will:
• Provide customer bill reductions
• Reduce Community Power
peak demand
• Increase access to clean
energy technologies
Programs that meet customer needs
Community Power Plan acts as a North Star for development of new programs 46 2024 grantees:
• Chula Vista Elementary
School District
• GRID Alternatives
• Groundwork San Diego –
Chollas Creek
• SBCS (formerly South Bay
Community Services)
• GoGreenish
• Suncoast Market Cooperative
• La Mesa Park & Recreation
Foundation
Community Clean Energy Grants
Community Power’s first program has injected nearly $2 million into local nonprofits • Ocean Discovery Institute
• South Sudanese
Community Center
• La Mestra Foundation, Inc.
• Climate Action Campaign
• Hammond Climate
Solutions Foundation
• MAAC Project
• San Diego 350
• I Am Green Inc.
• In Good Company Community Clean Energy Grant Program Press Conference 47 • Solar Battery Savings was a pilot
program Community Power launched
in 2024 that provided an incentive to
single-family residences that installed
solar power and battery storage
• It helped boost the struggling local
solar industry after the shift from Net
Energy Metering (NEM) to the Net
Billing Tariff (NBT)
• Supports local resiliency for high-energy usage periods and creates Resource Adequacy budget savings
Solar Battery Savings
A win-win-win for customers, local workforce and resource adequacy 48 Resource Adequacy (RA) and Energy
Power/Energy Agreements ($)
Flexible load as a resource
Reduce peak demand and deliver customer savings
Programs compensate customers for the energy and resource adequacy savings Community Power will receive – keeping revenues local and providing value back to our customers 49 Tan shaded areas indicate existing REN
territory as of 2023
San Diego Regional Energy Network (SDREN)
Collaboration with the County of San Diego to bring $125 million in energy efficiency programs to San Diego residents
In 2012, the CPUC issued a decision inviting local governments to collaborate and submit proposals for a new model for administering energy efficiency programs.
REN criteria includes:
• Activities that utilities cannot or do not intend to undertake • Pilot activities where there is no current utility offering and where there is potential for scalability to a broader geographic reach, if successful • Activities serving hard-to-reach markets, whether or not there is another utility program that may overlap
San Diego was the only major populated region in
the state without a REN as of 2023
50 Regional support
SDREN received support from dozens of businesses, community-based organizations, public agencies and environmental groups throughout the San Diego region 51 Sector Program Name, Segment, and Target Audience Budget Residential • Single Family (Equity) - Homeowners and renters of single-family residences • Multifamily (Equity) - Tenants; Property owners/ managers - $12M
- $23M
Commercial
• Small and Medium Business Energy Coach (Equity) - Small and medium businesses • Efficient Refrigeration (Equity) - Small corner stores and food donation centers • Market Access Program (Resource Acquisition) - Commercial property owners - $7M
- $11M
- $17M
Public • Climate Resilience Leadership (Market Support) - Public agencies • Tribal Engagement (Equity) – Tribal communities
- $21M
- $2M
Workforce,
Education &
Training
• Energy Pathways Program (Market Support) - High school students • Workforce Training & Capacity Building (Market Support) - Adult workforce & employers - $7M
- $12M
Codes & Standards • Codes & Standards - Public agencies i.e., Permitting authorities - $7M San Diego Regional Energy Network (SDREN)
SDREN programs
Statewide & National
Policy Influence
Jack Clark
Chief Operating Officer
53 Fighting for San Diegans in
Sacramento and Washington, D.C.
• Full-time Community Power Senior Legislative Manager based in Sacramento • Top-tier Sacramento and Washington, D.C. based lobbying firms on contract • Participate in CalCCA Lobby Day in Sacramento and organize our own meetings with the San Diego delegation
• Advocacy missions to Washington D.C. to educate policymakers on issues within federal jurisdiction, including potential federal funding opportunities as well as proposed legislation that affects the energy grid • Meet routinely throughout the year with policymakers at all levels of government • Actively coordinate with industry associations, including CalCCA and Local Energy Aggregation Network (LEAN)
State- and Federal-level engagement gives us a seat at the table 54 Policy wins result in $100 million in
savings for ratepayers
• Filed Petition for Modification at the CPUC
on the modified cost allocation mechanism
⚬ Regulatory victory: After initial denial,
CPUC reversed course and agreed
with Community Power
⚬ The final decision conservatively saves
bundled customers in San Diego
more than $100 million
⚬ The cost savings is the result of
avoided procurement costs and PCIA
costs for CCA ratepayers
Leading at the state and federal level results in local impact • State law mandates Diablo Canyon Nuclear Power Plant
operations be continued for 5 years and costs will be passed on to all ratepayers
⚬ Regulatory victory: CPUC decision agreed that it is fair and reasonable for the benefits to be allocated to all
customers paying for extended operations, meaning:
￭ Resource Adequacy benefits allocated automatically
￭ GHG-free attributes for our power content label
￭ $60 million in energy procurement cost savings over
5-year period while significantly reducing the GHG
intensity of both the PowerOn and PowerBase portfolios
Local engagement
Jack Clark
Chief Operating Officer
56 Locally-focused to serve our customers
Lee Friedman
Senior Manager
Strategic Partnerships
Ashley Rodriguez
Local Government
Affairs Manager
Meeting stakeholders where they are to ensure mutual understanding • Active local government affairs team ensures
Community Power regularly checks in with member
agencies and other local stakeholders
• Engagement has resulted in successful advocacy
for updated Climate Action Plans, ensuring the
continued development of utility-scale battery
storage facilities in the unincorporated areas of San
Diego County and support for Community Power
initiatives through letters of support
• Community Power maintains memberships with
over 20 local and national business chambers, trade
organizations, academic institutions and nonprofits
Your local government affairs team
57 Community engagement
Our on-the-ground team created opportunities to reach nearly 1 million people in 2024 • Community engagement team attends more than 100 in-person events every year to meet customers where they’re at and answer questions
• Launching the Power Network to work more closely with nonprofits throughout the greater San Diego region and work with them to enroll hard-to-reach constituencies into programs • Partnerships with trusted local brands such as CBS8 and the Padres help spread awareness 58 Power100 Champions
Local businesses opt in to 100% clean power and spread the word • Power100 Champions are local businesses that have opted up and want to encourage others to do so • Community Power creates co-branding opportunities to help support local businesses and build up a network of likeminded businesses
Strengthening and
streamlining internal
operations
Karin Burns
Chief Executive Officer
60 Community Power is evolving from startup to
steady state
• Information Technology
• Policy Review and Updates
• Standard Operating
Procedures
• Enterprise Data Platform
• Brand Recognition and
Web Design
Infrastructure
• Build Reserves
• Sign Long Term PPAs
• Manage Risk
• Launch ETRM
• Reduce arrearages
• Credit rating
• Slice of Day costs
Fiscal Sustainability
• Continue to build core team
• Retention, continuity &
succession plans
• Institutional culture of
managerial best practices
• Career development
• Team optimization &
utilization
People/HR
Strategic planning
The blueprint for Community
Power’s future
62 Strategic Plan high level timeline
Collaboration with our Team, CAC, and Board informs our plan and process Sep Oct-Dec Jan-Mar Apr-May
• Process overview
• Socialize with Exec
Team, Leadership
Team, All Staff and
Chair
• Assess current
situation, risks and
opportunities
• Develop department
three-year outlooks
• Determine high level
priority areas
• Socialize w/ Board
• Board, Staff and CAC
input
• Leadership retreats
• Strategic Plan Staff
Retreat
• CAC
Recommendation/
Board Approval
• Incorporate Strategic
Plan into Annual Budget
• Develop Annual Work
Plan, team, and
individual goal setting
• Team utilization,
optimization and
resource planning
Next steps
Maricela Hernandez
Clerk of the Board
64 • Board members are entitled to $300 per day for attending meetings of the Board of Directors or Board committees, including standing and ad hoc committees, and while on official business of Community Power.
This includes the orientation meeting. The per diem compensation is limited to four (4) payments in any calendar month. Policy can be found on Community Power's website under Resources; Key Documents; Agency Bylaws and Policies
• Advisory Committee Members’ Per Diem and Eligible Meetings. Members of Board-appointed Advisory Committees (“Advisory Committees”), including the Community Advisory Committee, shall be entitled to receive per diem compensation as follows:
⚬ $100 per day for attending meetings of Advisory Committees General information
What you need to know
Board and Committee Member Compensation Policy
65 Board member checklist
What you need to know
You should have received a notification by San Diego County Clerk of your requirement to file your Statement of Economics Interest (Form 700) Submit Ethics and Sexual Harassment prevention training certificates Please respond to the email from Maricela Hernandez that requests additional information
66 Special Board meeting
Friday, Feb. 7 at 10 a.m.
Regular Board meeting
Thursday, Jan. 23 at 5 p.m.
Next scheduled meetings
Thank you
68 Appendix of Supporting Documents
Who we are: Overview of Community Power's mission
and vision
• www.sdcommunitypower.org
Board of Directors and Community Advisory Committee
responsibilities
• Amended and Restated Joint Powers Authority Agreement – December 2021
• Bylaws
• Procurement Policy
• Public Meeting Agendas and Minutes
• Community Advisory Committee Policies and Procedures
• Conflict of Interest and Ethical Conduct Policy
• Integrated Resource Plan
• Glossary
• Other Key Documents including financial statements and budgets, agency policies and regulatory documents
Community Power's formation and customer base
• Information about CalCCA, the trade association for California Community Choice Aggregators
Current Community Power initiatives
• Power purchasing
⚬ Energy Risk Management Policy
• Financial stability
⚬ Budget Policy
⚬ Financial Reserves Policy
⚬ Investment Policy
⚬ Debt Policy
⚬ Fiscal Year 2025 Budget Book
• Competitive rate setting
⚬ Rate Development Policy
• Customer programs
⚬ San Diego Regional Energy Network supporting documents • Statewide policy influence
⚬ Legislative Priorities
⚬ Regulatory and Legislative Platform
• Local community engagement
⚬ Events page
⚬ Sponsorship Policy
⚬ Power100 Champions Hub
• Strengthening and streamlining internal operations
• Strategic planning
• Next steps