Board of
Directors
Regular Meeting
January 23, 2025
Welcome
and
Call to
Order
Roll
Call
4 Land
Acknowledgement
6 Warm Welcome!
Brittany Smith
Senior Cybersecurity Analyst
Amy Biltz
Information Technology
System Analyst
Ruby Laity
Assistant General Counsel
Items to
be Added,
Withdrawn
or
Reordered
on the
Agenda
Public
Comment
for Items
not
on the
Agenda
9 Consent
Calendar
1. Approve December 12, 2024, Meeting Minutes
2. Receive and File Treasurer’s Report for Period Ending November 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 Community Advisory
Committee
9. Approve the 2025 Community Advisory Committee Work
Plan
Public
Comment
for
Consent
Agenda
11 Regular
Agenda
10. Election of Officers for Community Power for Calendar Year 2025
11. Appointment of a Member to the Finance and Risk Management Committee
12. Adopt Resolution No. 2025-01 Approving the San Diego Regional Energy Network (SDREN) Energy Efficiency Programs and Budget Agreement with San Diego Gas and Electric (SDG&E) for Years 2024-2027 and Authorize the Chief Executive Officer to Accept, Appropriate and Expend the SDREN Funds in an Amount Not-to-Exceed $124,274,206 in the FY 2024-25 Capital Budget and FY 2025-29 Capital Investment Plan, and Related Actions
13. Approval of Power Purchase Agreement Portfolio with Luminia CA DevCo I, LLC
14. Approval of Power Purchase Agreement with Luminia CA DevCo 4, LLC
15. Approve a Contract with Maher Accountancy for General Accounting Professional Services in an Up-to-Amount, Not-to-Exceed $1,185,000 from February 1, 2025, Through January 31, 2028, and for Two Optional One-Year Extensions for a Total Up-to-Amount, Not-to-Exceed $2,069,700, and Authorize the Chief Executive Officer to Execute the Contract
16. Authorize the Chief Executive Officer to Enter into a Sublease Agreement with CORELATION, INC. for Office Space
17. Approval of Community Advisory Committee Appointment for the County of San Diego (Unincorporated)
18. Update on 2025 Projected Rate Changes
19. Update on Regulatory and Legislative Affairs
20. Update on Solar Battery Savings Program
12 Item No. 10
Recommendation:
Elect a Chair and Vice Chair for Calendar Year 2025.
Presenter:
Chair LaCava
Election of Officers for Community Power for Calendar Year 2025 Public
Comment
for Item
No. 10
14 Item No. 11
Recommendation:
Approve the Chair’s Nomination of a New Member to the Finance and Risk Management Committee.
Appointment of a Member to the Finance and Risk Management Committee Public
Comment
for Item
No. 11
16 Item No. 12
Recommendation:
Adopt Resolution No. 2025-01 (Attachment A) approving and authorizing the Chief Executive Officer to: (1) execute the San Diego Regional Energy Network (SDREN) Energy Efficiency Programs and Budget Agreement with SDG&E and to negotiate and execute any amendments, extensions, or renewals of such agreement (Attachment B); and (2) accept, appropriate, and expend the SDREN funds in an amount not to exceed $124,274,206 in the FY 2024-25 Capital Budget and FY 2025-29 Capital Investment Plan; and (3) take all necessary action to administer, monitor, manage, and ensure compliance with the agreement and to negotiate and execute contracts with third parties to implement the agreement or use of funds.
Presenter:
Colin Santulli, Director of Programs
Sheena Tran, Associate Director of Programs
Adopt Resolution No. 2025-01 Approving the San Diego Regional Energy Network (SDREN) Energy Efficiency Programs and Budget Agreement with San Diego Gas and Electric (SDG&E) for Years 2024-2027 and Authorize the Chief Executive Officer to Accept, Appropriate and Expend the SDREN Funds in an Amount Not-to-Exceed $124,274,206 in the FY 2024-25 Capital Budget and FY 2025-29 Capital Investment Plan, and Related Actions 17 Regional Energy Network (REN)
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
There were four RENs in the state when we decided to pursue creation of SD REN. Tan shaded areas indicate existing REN territory 18 REN Formation Timeline
November – December 2023:
• 10/26 SDCP BoD Progress Update
• Compile letters of support
• 12/16 SDCP BoD Approved Business
Plan filing
May – October 2023:
• Governance Structure
• Draft Program Development
• Ongoing stakeholder engagement
(20+ presentations)
January 2024 – January 2025:
• File Business Plan
• CPUC public process
• Develop and file Implementation
Plans
• Execute Programs Agreement
19 Regional Support
SDREN received support from dozens of businesses, community-based organizations, public agencies, and environmental groups throughout the San Diego region. 20 SDREN Governance Structure
• Oversight and Administration – Portfolio-level
vision and strategy; enact program changes during
portfolio cycle; oversee future Business Plan
development
• Lead Program Administrator – Fiscal, regulatory,
procurement, program management
• Advisory Committee – Advisement on outreach &
enrollment, feedback on program evaluation reports,
recommendations on program improvements
• Local & Regional Governments
• CBOs
• Program Operations Teams – Oversee day-to-day
program operations; primarily consist of program
managers and 3rd party implementers
21 SDREN Core Values
22 SDREN Programs
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 • SMB 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) - Tribes
- $21M
- $2M
Workforce,
Education &
Training
• Energy Pathways Program (MS) - High school students
• Workforce Training & Capacity Building (MS) - Adult workforce & employers - $7M
- $12M
Codes &
Standards
• Codes & Standards - Public agencies i.e., Permitting authorities - $7M 23 SDREN Energy Efficiency Programs and Budget
Agreement
• Defines SDG&E’s and Community Power’s roles and responsibilities • Enables SDG&E payments to Community Power for SDREN authorized funds to implement programs
• Identifies a payment schedule for funds through 2027
24 Resolution No. 2025-01
Approves and authorizes the Chief Executive Officer to:
1. Execute the San Diego Regional Energy Network (SDREN) Energy Efficiency Programs and Budget Agreement with SDG&E and to negotiate and execute any amendments, extensions, or renewals of such agreement (Attachment B); and
2. Accept, appropriate, and expend the SDREN funds in an amount not to exceed $124,274,206 in the FY 2024-25 Capital Budget and FY 2025-29 Capital Investment Plan; and
3. Take all necessary action to administer, monitor, manage, and ensure compliance with the agreement and to negotiate and execute contracts with third parties to implement the agreement or use of funds.
Public
Comment
for Item
No. 12
26 Item No. 13
Recommendation:
Approve Power Purchase Agreements and a Framework Agreement, in substantially final forms, for a Local RFO portfolio with Luminia CA DevCo I, LLC, for up to 3.7 MW of rooftop(s) photovoltaic (PV) generation for twenty years and authorize the Chief Executive Officer to execute the agreements.
Presenter:
Morgan Adam, Sr. Manager of Local Renewable Development Approval of Power Purchase Agreement Portfolio with Luminia CA DevCo I, LLC 27 SDCP Long-Term Procurement
• Goal of 75% renewables by 2027, 100% renewables by 2035 • 15% of load served by new, local infill resources by 2035 • Long-term PPAs provide developers with a certain revenue stream against which they can finance up-front capital requirements, incentivizing new incremental renewable energy and storage buildout.
• Long-term PPAs provide power supply cost certainty in Community Power’s portfolio. • This project came through a competitive solicitation Community Power issued in late 2023 for local, distributed projects. The project was shortlisted by SDCP’s energy contract working group.
28 Luminia Rooftop Portfolio : Project Summary
• 3.7 MW PV across four (4) commercial rooftops – 500kW to 1.5MW each • Location: San Diego County
• Chula Vista (2)
• City of San Diego
• County of San Diego
29 Luminia Rooftops: Key Terms
• Product: Energy and Renewable Portfolio Standard (RPS) credits • Pricing: Fixed for a 20-year term
• Timeline: Guaranteed Commercial Operation Date is March 31, 2027 • SDCP receives financial compensation for failure to meet certain performance requirements including but not limited to meeting the guaranteed commercial operation date and meeting performance metrics over the delivery term. • A separate Framework Agreement will manage development of the individual site PPAs at a portfolio level. The Framework Agreement governs a process by which the four (4) PPAs presented for approval here may be replaced by PPAs at different site locations not to exceed the aggregate 3.7 MW PV portfolio. 30 Luminia Rooftops: Staff Analysis
• The Luminia rooftops portfolio will contribute to Community Power’s 100% renewable by 2035 target, providing approximately 7,400 MWh of renewable energy per year. • The portfolio will also contribute to Community Power’s 15% local infill by 2035 target • The long-term purchase of energy and RPS attributes will provide Community Power with cost certainty over the term of this PPA.
• Luminia is a local, San Diego-based solar and storage developer founded in 2019 that focuses on distributed and community solar projects across the country with over 50 MW of commercial and community solar projects in operation and development in California and New England.
31 Luminia Rooftops: Workforce Development and Community Benefits • Over $2.5 MM in roof or land lease revenue to local building and property owners over the term
• Over $2 MM in local labor wages and salaries during the construction phases of the projects • Developer commitment to using local labor, prevailing wages and hiring from San Diego-based apprenticeship programs • Infill rooftop PV sites take advantage of previously developed/disturbed, under-utilized rooftop space for energy projects
Public
Comment
for Item
No. 13
33 Item No. 14
Recommendation:
Approve Power Purchase Agreement, in substantially final form, with Luminia CA DevCo 4, LLC, for 1.7 MW of rooftop and carport canopy photovoltaic (PV) generation for twenty years and authorize the Chief Executive Officer to execute the agreement.
Presenter:
Morgan Adam, Sr. Manager of Local Renewable Development Approval of Power Purchase Agreement with Luminia CA DevCo 4, LLC 34 SDCP Long-Term Procurement
• Goal of 75% renewables by 2027, 100% renewables by 2035 • 15% of load served by new, local infill resources by 2035 • Long-term PPAs provide developers with a certain revenue stream against which they can finance up-front capital requirements, incentivizing new incremental renewable energy and storage buildout.
• Long-term PPAs provide power supply cost certainty in Community Power’s portfolio. • This project came through a competitive solicitation Community Power issued in mid-2023 for local, distributed projects as part of Community Power’s Solar Advantage Program. The project was shortlisted by SDCP’s energy contract working group. 35 Luminia CV Retail Center: Project Summary
• 1.7 MW PV – rooftop and solar parking
canopies
• Location: Retail center in Chula Vista
• First project to be contracted as part of
Community Power’s Solar Advantage Program
(CPUC DAC-GT program)
• CPUC subsidization of above market
procurement and 20% electricity bill
discounts for low-income residential
customers
36 Overview - Solar Advantage Program -
Disadvantaged Communities Green Tariff (DAC-GT)
Description & Benefits
• Designed to increase renewable energy
generation among residential customers
in DACs per CalEnviroScreen 4.0.
• Offers 100% renewable energy to
customers who are eligible for the
California Alternate Rates for Energy
(CARE) or Family Electric Rate
Assistance Program (FERA) discounts.
• Provides an additional 20% discount on
the electricity and delivery portion of the
customers' bills.
• Funding for DAC-GT is fully refundable
by the CPUC.
Program Capacity & Enrollment*
*Eligible customers will be auto-enrolled
when new projects come online.
DAC-GT
MW Allocation 20.16
Estimated Customer
Enrollment
~9,000
37 Luminia CV Retail Center: Key Terms
• Product: Renewable energy and RPS credits
• Pricing: Fixed for a 20-year term
• Timeline: Guaranteed Commercial Operation Date is June 30, 2027 • SDCP receives financial compensation for failure to meet certain performance requirements including but not limited to meeting the guaranteed commercial operation date and meeting performance metrics over the delivery term. • Agreement is contingent upon subsequent PPA approval from the CPUC 38 Luminia CV Retail Center: Staff Analysis
• The Luminia CV retail center project will contribute to Community Power’s 100% renewable by 2035 target, providing approximately 3,600 MWh of renewable energy per year.
• The portfolio will also contribute to Community Power’s 15% local infill by 2035 target • The long-term purchase of energy and RPS attributes will provide Community Power with cost certainty over the term of this PPA.
• Projects that are approved through this program will not only benefit low-income customers in Community Power’s territory through bill discounts but will also be partially subsidized for above market procurement costs through CPUC program funding. • Luminia is a local, San Diego-based solar and storage developer founded in 2019 that focuses on distributed and community solar projects across the country with over 50MW of commercial and community solar projects in operation and development in California and New England.
39 Luminia CV Retail Center: Workforce Development and Community Benefits • Over $1.75 MM in property rents and improvements over the term of the agreement • Over $1 MM in local labor wages and salaries during the construction phases of project • Developer commitment to use local labor, prevailing wage, and hiring from San Diego-based apprenticeship programs
• Developer commitment to work with shopping center owner to help with community outreach including on-site displays and organizing educational days, in coordination and collaboration with the City of Chula Vista
• Infill rooftop and carport PV sites take advantage of previously developed/disturbed, under-utilized rooftop and parking space for energy projects Public
Comment
for Item
No. 14
41 Item No. 15
Recommendation:
Approve a Contract with Maher Accountancy for General Accounting Professional Services in an Up-to-Amount Not-to-Exceed $1,185,000 from February 1, 2025 through January 31, 2028, and for Two Optional One-Year Extensions for a total up-to-amount, not-to-exceed $2,069,700, and Authorize the Chief Executive Officer to Execute the Contract.
Presenter:
Dr. Eric Washington, Chief Financial Officer
Approve a Contract with Maher Accountancy for General Accounting Professional Services in an Up-to-Amount, Not-to-Exceed $1,185,000 from February 1, 2025, Through January 31, 2028, and for Two Optional One-Year Extensions for a Total Up-to-Amount, Not-to-Exceed $2,069,700, and Authorize the Chief Executive Officer to Execute the Contract 42 General Accounting Professional Services
Timeline
Maher Accountancy
current general
accounting provider
Pre-November 2024 November 2024
Issuance of RFP for
General Accounting
Professional Services
December 2024
Deadline for proposals
Evaluation of
proposals
January 2025
Notification of intent to
award
FRMC Review and
Potential Board Approval
New Professional
Services contract in
place
43 Recommendation: Approve a Contract with Maher Accountancy for General Accounting Professional Services in an Up-to-Amount Not-to-Exceed $1,185,000 from February 1, 2025 through January 31, 2028, and for Two Optional One-Year Extensions for a total up-to-amount, not-to-exceed $2,069,700, and Authorize the Chief Executive Officer to Execute the Contract.
Approval of Contract with Maher Accountancy
Term • Initial three-year term of 2/1/25 to 1/31/28
• Two optional one-year extensions
Not-to-Exceed • Initial three-year term: $1,185,000
• Two optional one-year extensions
• Total: $2,069,700
Scope of Work
• Monthly Financial Operational Assistance ($28,000/month) • Financial Statement Audit Support ($16,000/yearly audit) • Contingency for out-of-scope items ($75,000 for the initial term and $25,000 additional for each optional one-year extension) • Additional scope since FRMC: 5% annual escalator
Public
Comment
for Item
No. 15
45 Item No. 16
Recommendation:
Authorize the Chief Executive Officer to enter into a sublease agreement with CORELATION, INC., for office space located at 2305 Historic Decatur Road, San Diego, CA, in the amount of $638,208, plus utilities, for 24 months, with a potential option to extend for an additional year, and related documents.
Presenter:
Dr. Eric Washington, Chief Financial Officer
Authorize the Chief Executive Officer to Enter into a Sublease Agreement with CORELATION, INC. for Office Space
46 Approval to Enter into a Sublease Agreement
Property Lease
Per section 3.2.5 of the Joint
Powers Agreement, the ability
to lease any property is a
power which may be
exercised at the discretion of
the SDCP Board of Directors.
JPA Section 3.2.5
Proposed Lease
2305 Historic Decatur
Road, San Diego,
California 92106
Key Terms:
• Lease term: 24 months
• Option to extend one year
• Three months abated rent
• Size: 8,864 square feet
• Cost: $3.00/square ft. per month
• No budget impact in FY 2024-25
$26,592
Monthly Lease
• Supports continued growth
• Much needed meeting space
• Dedicated storage space
• Space is fully built out
47 SD Community Power Staffing
11 FTE
Budget
23 FTE
Budget
40 FTE
Budget
59 FTE
Budget
80 FTE
Budget
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
The hiring strategy proposes that SD Community Power will continue to grow beyond the 80 full-time employees that are currently authorized in the FY 2024-25 budget.
Current Lease
2305 Historic Decatur
Road, San Diego,
California 92106
• Lease term: 11/1/23 to 10/31/25
• Option to extend to 10/31/26
• Size: 13,704 square feet
• Cost: $3.75/square ft. per month
70+
People
Capacity
$51,390
Monthly Lease
48 Approval to Enter into a Sublease Agreement
Property Lease
Per section 3.2.5 of the Joint
Powers Agreement, the ability
to lease any property is a
power which may be
exercised at the discretion of
the SDCP Board of Directors.
JPA Section 3.2.5
Proposed Lease
2305 Historic Decatur
Road, San Diego,
California 92106
Key Terms:
• Lease term: 24 months
• Option to extend one year
• Three months abated rent
• Size: 8,864 square feet
• Cost: $3.00/square ft. per month
• No budget impact in FY 2024-25
$26,592
Monthly Rent
Current Lease
2305 Historic Decatur
Road, San Diego,
California 92106
Key Terms:
• Lease term: 11/1/23 to 10/31/25
• Option to extend to 10/31/26
• Size: 13,704 square feet
• Cost: $3.75/square ft. per month
$51,390
Monthly Rent
Total Lease • Total square feet: 22,568
• Total monthly rent: $77,982
• Total annualized rent: $935,784
Public
Comment
for Item
No. 16
50 Item No. 17
Approval of Community Advisory Committee Appointment for the County of San Diego (Unincorporated)
Recommendation:
Approve the Appointment of Ross Pike to the Community Advisory Committee for the County of San Diego (Unincorporated).
Presenter:
Xiomalys Crespo, Sr. Community Engagement Manager
51 • 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 Community Power'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; and worked with Director Lawson-Remer's staff to review applications and determine a nomination for appointment based on Membership Terms & Criteria.
• Director Lawson-Remer has nominated Ross Pike.
Membership Criteria & Selection Process
Public
Comment
for Item
No. 17
53 Item No. 18
Recommendation:
Receive and file an update on San Diego Community Power’s 2025 projected rate changes.
Presenter:
Lucas Utouh, Sr. Director of Data Analytics and Customer Operations Aaron Lu, Rates and Strategy Manager
Update on 2025 Projected Rate Changes
54 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.
February 1, 2025*
Community Power's Board
adopts 2025 rates,
retroactively effective on
February 1, 2025.
February 7, 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. The Commission granted the extension on Dec. 19, 2024.
**SDG&E filed consolidated filing for 2025 rates on Jan. 21. Community Power staff is analyzing the latest information to bring proposed 2025 rates to the Board of Directors on Feb. 7, 2025. 55 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
56 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?
57 • 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.
• The proposed 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:
58 • 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 ($/kWh)
Rate Trifurcation By Vintage
Vintage 2020 Vintage 2021 Vintage 2022
59 Illustrative SDG&E commodity rates, effective 02-01-2025 • SDG&E’s system avg. commodity rates are projected to increase by 3.32%. • The primary driver for the increase in commodity rates is the SDG&E’s 2022 General Rate Case impacts.
2025 Commodity Rate Projections
Customer Class 1/1/2023 1/1/2024 3/1/2024 10/1/2024* 1/1/2025** 1/1/2025*** 2/1/2025 1/1/2023 -
1/1/2024
1/1/2024 -
3/1/2024
3/1/2024 -
10/1/2024
10/1/2024 -
1/1/2025
10/1/2024 -
2/1/2025
Residential 0.1967 0.1514 0.1517 0.1517 0.1519 0.1622 0.1578 -23.03% 0.19% 0.00% 6.96% 4.03% Small Commercial 0.1742 0.1283 0.1285 0.1285 0.1288 0.1385 0.1348 -26.34% 0.19% 0.00% 7.78% 4.85% M/L C&I 0.2039 0.1578 0.1581 0.1581 0.1578 0.1660 0.1616 -22.61% 0.18% 0.00% 5.04% 2.21% Agricultural 0.1455 0.1120 0.1122 0.1122 0.1116 0.1174 0.1142 -23.00% 0.18% 0.00% 4.61% 1.78% Lighting 0.1286 0.0991 0.0993 0.0993 0.0995 0.1063 0.1034 -22.92% 0.19% 0.00% 7.07% 4.13% System Total 0.1947 0.1499 0.1502 0.1502 0.1503 0.1595 0.1552 -23.03% 0.19% 0.00% 6.20% 3.32% * SDG&E 10/1/2024 rate change did not revise commodity rates and PCIA. ** SDG&E proposed 1/1/2025 rates from Oct. 2025 ERRA Update, filed 10/21/2024. ** *SDG&E proposed 1/1/2025 rates from Nov. Consolidated Rates Filing, filed 11/15/2024.
SDG&E Avg. Commodity Rate ($/kWh) SDG&E Avg. Commodity Rate Change (%) 60 • Staff is reviewing SDG&E’s recently filed final 2025 commodity rates and PCIA rates, that will go into effect on February 1, 2025. • Staff continues to monitor updates from SDG&E & CPUC. • Due to variation in PCIA for vintage years, staff will continue to recommend trifurcated rates.
• Staff will recommend to the Board to adopt a rate change on February 7, 2025.
Next Steps
Public
Comment
for Item
No. 18
62 Item No. 19
Update on Regulatory and Legislative Affairs
Recommendation: Receive and file the Update on Regulatory and Legislative Affairs.
Presenters:
Aisha Cervantes-Cissna, Senior Policy Manager
Patrick Welch, Senior Legislative Manager
63 Disconnections
New Disconnection and Reconnection Policies Being Considered • Investor-Owned Utilities (IOUs) must restore service to a residential customer whose service was previously terminated for nonpayment upon a customer entering into a payment plan or agreement.
• When can the California Public Utilities Commission (CPUC) authorize IOUs to disconnect customers again after reconnection?
• Should an IOU take into account a customer's ability to pay before terminating service due to nonpayment?
• Should there be limits on the number of reconnections allowed? • Should the CPUC limit the amount an IOU can collect from a customer that is unable to pay their bill?
• Should disconnection prohibitions due to extreme heat be expanded? 64 Disconnections
California Community Choice Association (CalCCA) Position • Balance customer protections with arrearages to mitigate the level of arrearages going back into rates
• Hire a third party to perform a holistic examination of disconnection protection and payment programs
• Adopt expanded disconnection protections for high and low temperature risks
65 Legislative Update • Community Power and other Community Choice Aggregators (CCAS) issued a budget letter
requesting $200 million for California Energy
Commission program that could support programs
like Solar Battery Savings.
• Governor Newsom's January 10 budget proposal
includes $180 million for the program (plus $20
million for admin support). State budget must be
finalized and adopted by June 15.
• New 2-year legislative session began on
December 2. The main policy focus for 2025 will
likely be affordability and wildfires.
• Community Power's Regulatory & policy Platform
supports state and federal funding "that enables
SDCP to provide 100% renewable energy or
sooner."
66 Legislative Update • Federal: The new Congress was sworn in on January 3. Community Power staff is monitoring
potential changes Inflation Reduction Act renewable
energy and storage tax credits.
• Community Power's Congressional letter advances
the following: o No retroactive changes o Protect the Investment Tax Credit and Production Tax Credit.
o The Energy Communities and Domestic Content
tax credit adders have been materially beneficial.
o Home Energy Efficiency Improvement Credit
(HEEIC), and the Residential Clean Energy
Credit are critical to local resource development.
• Consistent with the Policy Platform's support for deep decarbonization, promoting local development, and
achieving strong financial stability.
Public
Comment
for Item
No. 19
68 Item No. 20
Update on Solar Battery Savings Program
Recommendation:
Receive and File Update on Solar Battery Savings Program.
Presenters:
Emily Fisher, Senior Program Manager
Colin Santulli, Director of Programs
69 Evolution of Customer Generation Credits
Net Energy Metering
(NEM) 1.0: Customers
credited for energy exported
to the grid at the same rate
they were paying for energy
(kWh in = kWh out).
Net Energy Metering
(NEM) 2.0: Customers
credited for energy exported
to the grid at the same rate
they were paying for energy.
Required paying an
interconnection fee,
transferring to a Time-of-Use
(TOU) rate and added
charges.
Net Billing Tariff (Solar
Billing Plan, “NEM 3.0”):
Customers credited at the
avoided-cost calculator value
when the energy is exported
(ranging from ~$0.02-$3.00)
depending on the month and
hour.
Net Metering allows your home to send energy produced (on site) back to the grid for energy credits to reduce your utility bill.
Pre - July 1, 2017 July 1, 2017 – April 15,
2023
Post - April 15, 2023
70 Net Billing Tariff Adoption
• Staff conducted an in-depth analysis and Anticipated costs in millions forecast of solar growth to determine
options.
• Staff determined that adopting NBT could
save all Community Power customers over
$20.7 million over three years.
• These savings will be passed onto
customers through rate savings, adders,
and customer programs, such as battery
incentives.
$32
$8.5
$2.8
$0
$5
$10
$15
$20
$25
$30
$35
Extend NEM Adopt NBT
Millions
Costs over 3 Years ($ MM)
Adder
71 Program Goals
Install solar + storage in single-family homes throughout Community Power territory (Target Goal: 50% of incentives to Communities of Concern)
Support clean energy and reliability
• Local infill goal (15%)
• Reliable capacity for on-peak hours
Leverage non-Community Power incentives for our customers Build strong relationships with our customers and the industry
72 Research for Program Development
Research on
national and
statewide programs
Discussions with
other CA CCAs
about existing or
planned programs
Engagement with
CALSSA and other
industry orgs
Interviews, feedback
and workshops with
industry
73 Program Parameters
Program Incentives
Market Rate CARE/FERA and/or
Communities of Concern
Solar Upfront Incentive N/A Up to $450/kW-AC1
Storage Upfront Incentive $350/kWh
(nameplate useable capacity)
Up to $500/kWh2
(nameplate useable capacity)
Storage Performance
Incentive
$0.10/kWh
(based on actual performance over the dispatch period during on-peak periods) 1Up to based on if customer is eligible for other solar incentives, i.e., SGIP, DAC-SASH and City of San Diego Solar Equity Program 2Up to based on if customer is eligible for other upfront storage incentives, i.e., SGIP 74 How the Program Works
Assumes customer discharges 50% of the battery during the window:
75 Program Training
Contractors
• Contractors are the messengers to our
customers regarding the program
• Mandated contractor training
• Trained 44 contractors ahead of
program launch at a local distributor
and International Brotherhood of
Electrical Workers (IBEW)’s training
facilities
• Converted training to virtual format
following program launch
Battery Manufacturers
• Program training held for interested battery
manufacturers and shared virtually with
battery manufacturers as they registered
• Individual meetings with battery
manufacturers to discuss operationalizing
the batteries and data sharing
76 Program Timeline
Contractor & Battery
Manufacturer Trainings
Start Accepting
Applications
Funding fully
allocated
Contractor &
Customer
Surveys Release
June 2024
July 2024
November 2024
December 2024
Upfront Incentive
Payments Start
September 2024
77 Customer Success
Customer Participation: - Total Approved Projects: 1,636 (87% approval rate)
- Total Approved Batteries: 2,249 - Total Projects Paid: 572 (35%) - Average Incentive: $6,870 - $6,150 – Market Rate - $8,469 – Non-Market Rate - 55% of customers had additional solar added; 18% of those customers had a solar
incentive
- 7.4 MW Enrolled
78 Contractor Engagement
• 77% of approved contractors have participated
• 37% of contractors are DBE
• 4% of contractors are union
• 37% of contractors have less than 15 projects
# of Employees # of Contractors
<=10 employees 20
10-50 employees 17
>50 employees 15
Contractor Name Total
Projects
% of
Projects
Baker Home Energy 410 25%
TMAG Industries Inc, DBA Stellar Solar 176 11%
Sunline Energy 144 9%
Aloha Solar Power & Electrical Services Inc. 131 8%
KBI Electric, Inc. DBA Build Brothers 85 5%
Semper Solaris 76 5%
SolHome 64 4%
Homegrown Energy Solutions LLC 60 4%
Tesla, Inc. 59 4%
Solar Tech Energy 50 3%
Cosmic Solar Inc. 47 3%
Solare Energy, Inc. 40 2%
Johnson Solar 33 2%
SunVantage 31 2%
Sattler Solar Inc 25 2%
G C Electric Solar 24 1%
Alltech Solar, Inc. 21 1%
Palomar Solar LTD 18 1%
Incentive Solar 18 1%
San Diego Solar Inc 15 1%
79 Battery Manufacturer Engagement
- 14 Approved Battery OEMs
- 46 Approved Battery Products
- 8 OEMs with products enrolled
OEM # of Batteries
Approved
Tesla 1,857 (83%)
Enphase 254 (11%)
sonnen 101 (4.5%)
Franklin 12 (<1%)
NeoVolta 7 (<1%)
StackRack 7 (<1%)
PointGuard 4 (<1%)
Canadian Solar 3 (<1%)
Total 2,249
80 Updates & Next Steps
• Featured as a case study in the Department
of Energy’s Virtual Power Plant Liftoff report
on Jan 10, 2025.
• Distributed program survey to contractors
and participating customers
• Complete initial program evaluation in Q1
2025 to inform a future relaunch later this
year
• Evaluate & develop a non-residential pilot
Public
Comment
for Item
No. 20
Report by
Chief
Executive
Officer
83 Report by Chief Executive Officer
Updates
• Community outreach at local libraries
• Successful Board Orientation last week!
• Customer Feedback Survey is live
o Open to all residents and businesses in
our service territory
o Promotional materials to be provided
• Community Power to provide updates to
member agencies between Feb. and April
• Community Power is still hiring!
Directors'
Comments
Adjournment
Next Special
Board of Directors Meeting
February 7, 2025
10 a.m.