Agenda Page 1 of 2
AGENDA
BOARD OF DIRECTORS MEETING
THURSDAY, JULY 7, 2022
8:45 A.M.
___________________________________________________________ ****AB 361****
**RE CORONAVIRUS COVID-19**
CONSISTENT WITH THE PROVISIONS OF AB 361, MEMBERS OF THE BOARD OF DIRECTORS WILL PARTICIPATE IN THE JUNE 7, 2022, MEETING BY TELECONFERENCE. IN-PERSON
PARTICIPATION BY THE PUBLIC WILL NOT BE PERMITTED AND NO PHYSICAL LOCATION FROM WHICH THE PUBLIC MAY ATTEND THE MEETING WILL BE AVAILABLE. REMOTE PUBLIC PARTICIPATION DETAILS ARE LISTED BELOW.
Members of the public who wish to participate in the Board of Directors Meeting may do so via the following webinar link or teleconference call-in number and meeting code:
• Webinar link: https://us06web.zoom.us/j/88546704126
• Telephone number: 1 (253) 215-8782
• Meeting ID: 885 4670 4126
PLEASE NOTE: This meeting will be conducted entirely by teleconference.
How to Submit Public Comment During the Teleconference Meeting:
The Chair will request public comment during the Public Comment period for all items on the agenda. Comments may be submitted in writing to [email protected] or during the meeting via the webinar “raise your hand” feature. For detailed public comment instructions, please visit this page.
For written comments, state the agenda item number that you are commenting on and limit to 300 words. Written comments received prior to the meeting and/or the agenda item you wish to comment on will be read into the record up to 300 words.
DISABLED ACCOMMODATION: If you have a disability which requires an accommodation or an alternative format, please contact the Clerk of the Board at (707) 757-9417, or by email at [email protected] as soon as possible to ensure arrangements for accommodation.
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Staff recommendations are guidelines to the Board. On any item, the Board may take action which varies from that recommended by staff.
Agenda Page 2 of 2
CALL TO ORDER
BOARD OF DIRECTORS CONSENT CALENDAR
1. Approve June 2, 2022, Draft Board of Directors Meeting Minutes (Staff Recommendation: Approve)
2. Receive Geothermal Opportunity Zone Update (Staff Recommendation:
Receive and File)
3. Approve Additional Funding for the Existing On-Bill Finance Assistance Pilot Program and Delegate Authority to the CEO to Negotiate, Execute, and Amend a Professional Services Agreement for On-Bill Finance Administrator Agreement for a Not-to-Exceed Amount of $139,643 through June 30, 2023 (Staff Recommendation: Approve)
4. Authorize Extension of SCP Resolution 2021-05 Permitting Remote Teleconference Meetings of the Board of Directors and Community Advisory Committee Pursuant to AB 361 (Staff Recommendation: Approve)
5. Adopt a Resolution Setting a Date, Hour, and Place for Regular Meetings (Staff Recommendation: Approve)
BOARD OF DIRECTORS REGULAR CALENDAR
6. Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate (Staff Recommendation: Receive and File)
7. Receive Legislative and Regulatory Updates and Provide Direction as Appropriate (Staff Recommendation: Receive and File)
8. Approve the Continued Use of New Customer Rates Effective July 1, 2022 (Staff Recommendation: Approve)
9. Receive Presentation on Brand Awareness Survey Findings (Staff Recommendation: Receive and File)
BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
(Comments are restricted to matters within the Board’s jurisdiction. Please be brief and limit spoken comments to three minutes, or 300 words if written.)
ADJOURN
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COMMONLY USED ACRONYMS AND TERMS
CAC Community Advisory Committee
CAISO California Independent Systems Operator – the grid operator CCA Community Choice Aggregator – a public power provider CEC California Energy Commission
CleanStart SCP’s default power service
CPUC California Public Utilities Commission
DER Distributed Energy Resource
ERRA Energy Resource Recovery Account – one of PG&E’s rate cases at the CPUC EverGreen SCP’s 100% renewable, 100% local energy service, and the first service in the United States providing renewable power every hour of every day.
Geothermal A locally-available, low-carbon baseload renewable resource GHG Greenhouse gas
GRC General Rate Case – one of PG&E’s rate cases at the CPUC GridSavvy GridSavvy Rewards are available to SCP customers for reducing household energy use when needed to help California ensure reliable low-emission power. A form of ‘demand response.’
IOU Investor Owned Utility (e.g., PG&E)
IRP Integrated Resource Plan – balancing energy needs with energy resources JPA Joint Powers Authority
MW Megawatt is a unit of power and measures how fast energy is being used or produced at one moment.
MWh Megawatt-hour is a unit of energy and measures how much energy is used or produced over time.
NEM Net Energy Metering. NEM is a billing mechanism that credits solar energy system owners for the electricity they add to the grid.
NetGreen SCP’s net energy metering bonus
PCIA Power Charge Indifference Adjustment – a fee charged by PG&E to all electric customers to ensure PG&E can pay for excess power supply contracts that it no longer needs.
RA Resource Adequacy – a required form of capacity that helps ensure there are sufficient power resources available when needed.
RPS Renewables Portfolio Standard refers to certain kinds of renewable energy which qualify to meet state requirements, including wind, solar, geothermal.
SCP Sonoma Clean Power
TOU Time of Use, used to refer to rates that differ by time of day 3 of 49
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DRAFT MEETING MINUTES
BOARD OF DIRECTORS MEETING
THURSDAY, JUNE 2, 2022
8:45 A.M.
___________________________________________________________ ****AB 361****
**RE CORONAVIRUS COVID-19**
CONSISTENT WITH THE PROVISIONS OF AB 361 WHICH SUSPENDED CERTAIN
REQUIREMENTS OF THE BROWN ACT, MEMBERS OF THE BOARD OF DIRECTORS PARTICIPATED IN THE JUNE 2, 2022, MEETING BY TELECONFERENCE.
CALL TO ORDER
(8:48 a.m. - Video Time Stamp: 00:02:37)
Chair King called the meeting to order.
Board Members present: Chair King, and Directors Bagby, Landman, Peters, Rogers, Slayter, Felder, Gjerde, and Hopkins. Vice Chair Fudge and Director Elward were absent with prior notice.
Staff present: Geof Syphers, Chief Executive Officer; Michael Koszalka, Chief Operating Officer; Stephanie Reynolds, Director of Internal Operations; Rebecca Simonson, Director of Programs; Ryan Tracey, Director of Planning & Analytics; Deb Emerson, Director of Power Procurement; Hannah Rennie, Senior Energy Analyst; and Joshua Nelson, Special Counsel.
BOARD OF DIRECTORS CONSENT CALENDAR
(8:50 a.m. - Video Time Stamp: 00:03:45)
1. Approve May 5, 2022, Draft Board of Directors Meeting Minutes
2. Approve Three Year Professional Services Agreement with S2 Advertising for Comprehensive Media Consulting Services
3. Approve the Proposed Annual Budget for Fiscal Year 2022-2023
4. Receive Geothermal Opportunity Zone Update
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Public Comment: None
Motion to Approve the June 2, 2022, Board of Directors Consent Calendar by Director Bagby
Second: Director Peters
Motion passed by roll call vote
AYES: Bagby, Landman, Peters, King, Rogers, Slayter, Felder, Gjerde, Hopkins ABSENT: Elward, Fudge
BOARD OF DIRECTORS REGULAR CALENDAR
5. Authorize Extension of SCP Resolution 2021-05 Permitting Remote Teleconference Meetings of the Board of Directors and Community Advisory Committee Pursuant to AB 361
(8:51 a.m. - Video Time Stamp: 00:05:32)
Chair King requested this item be moved to the regular calendar, so the Board may discuss bringing in-person meetings back to SCP. He stated that his preference is a hybrid option.
Director Rogers stated that the City of Santa Rosa has been meeting in person for a year and inquired whether staff is prepared to go back to in-person meetings. Stephanie Reynolds, Director of Internal Operations, responded that SCP staff had been working on the transition to hybrid meetings and will be ready as soon as the Board gave direction.
Director Peters expressed wanting live, in-person meetings. He stated remote meetings lack the personal one-on-one rapport.
Director Hopkins said she supports returning to in-person meetings but supports the hybrid model and expressed an interest changing the Board meeting time to 9:00 a.m. Chair King expressed support for starting meetings at 9:00 a.m.
Director Felder stated that the City of Sonoma has gone to in-person meetings, but it is receiving some pushback and he would like SCP to reserve the right to move to hybrid meetings.
Director Bagby explained that hybrid meetings are “live” meetings and the idea of going to 100% in-person meeting only is not realistic. She explained 6 of 49
that outlying constituents appreciate the ability to call in and that society is shifting away from an in-person format. She said we should move forward with the hybrid format.
Director Landman explained he was for anything that worked if there was quality participation. He also warned that we should watch where COVID-19 numbers are and move into a hybrid format with flexibility.
Director Gjerde supported a hybrid model because it allows for the greatest flexibility.
Director Peters expressed that he is not opposed to the hybrid model but inquired if meetings could be held in service territories.
Public Comment: Denis Quinlan mentioned that the Community Advisory Committee would like to have their next meeting on June 16, 2022, via Zoom.
Motion to authorize the extension of SCP Resolution 2021-05 Permitting Remote Teleconference Meetings of the Board of Directors and Community Advisory Committee Pursuant to AB 361 by Director Bagby Second: Director Peters
Motion passed by roll call vote
AYES: Bagby, Landman, Peters, King, Rogers, Slayter, Felder, Gjerde, Hopkins ABSENT: Elward, Fudge
6. Receive Power Procurement Update
(9:17 a.m. - Video Time Stamp: 00:31:15)
CEO Geof Syphers introduced 3 new power supply procurements to the Board.
Hannah Rennie, Senior Energy Analyst, discussed the Tubbs Island Storage and Solar Project which will be operational on May 30, 2024, and will be a 20- year fixed price contract. She added that this is an EverGreen project and will be located near Sonoma Raceway.
Deb Emerson, Director of Power Procurement, announced the Fish Lake Project and the Ormat Portfolio Project. She said the Fish Lake Project will be operational in 2024 and the projects are both 20-year fixed price contracts. 7 of 49
Director Slayter asked for a historical prospective on fixed term costs.
Director Emerson responded that it depends on technology and there are limited geothermal resources available.
Director Rogers asked what the importance of battery storage is. CEO Syphers responded that battery storage helps match SCP’s supply with the load. Director Emerson also responded that while capacity value for solar alone is dwindling, with battery storage it is more valuable.
Director Bagby asked what level of investment is needed in material science and battery technologies. CEO Syphers answered that it is important to have diverse option and batteries are a very important part of that.
Director Landman requested that the slide presentation for this item be sent to the Board.
Public Comment: None
7. Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate
(9:38 a.m. - Video Time Stamp: 00:52:26)
Stephanie Reynolds, Director of Internal Operations, gave Advanced Energy Center updates and stated that the Energy Center has had 3,000 visitors, exceeding the goal previously set. She mentioned the Energy Center had hosted end of the year field trips from local schools and then pointed out SCP participation numbers.
CEO Syphers discussed SCP’s staff receiving an update on energy poverty from Eric Scheier, SCP’s new Department of Energy Fellow. CEO Syphers explained that the Integrated Resource Plan calendar had shifted due to new regulations, and he told the Board that Ryan Tracey, Director of Planning and Analytics, will bring an update in the future. He mentioned that an error was found in reporting on the reserve balances section, but the actual financial statements were correct. A report on actions to correct the error will be brought to the next meeting.
Director Gjerde asked about long-term balances and what are the benefits of those reserves. CEO Syphers explained that the benefits are related to sustaining strong credit to obtain lower cost supply contracts for customers and to mitigate against energy market volatility.
Public Comment: None
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8. Receive Legislative and Regulatory Updates and Provide Direction as Appropriate
(9:50 a.m. - Video Time Stamp: 01:04:06)
CEO Syphers then gave a legislative update. He mentioned AB 881 (Min) was killed. He stated that SCP was continuing to work with the author on SB 1158 (Becker) and is hopeful many of SCP’s issues can be worked out.
Director Slayter inquired about AB 3250 which would subsidize classic vehicles to become EVs. CEO Syphers replied he would confer with staff on the bill. Director Slayter mentioned that the EPA has opened the comment period on their cross-state pollution rule and CEO Syphers responded that SCP hasn’t been following the issue, but SCP can review.
Chair King asked if there was any update on SB 1393 (Archuleta). CEO Syphers updated that the California State Association of Counties had asked the author to remove natural gas requirement portions and the bill may get pulled.
Public Comment: None
9. Approve the Recognition of Deferred Revenue in the Operating Account Fund
(10:00 a.m. - Video Time Stamp: 01:14:40)
Michael Koszalka, Chief Operating Officer, stated that there was $26 million in deferred revenue. The reason for the deferral was PCIA risk and after the current fiscal year, the funds will be moved into reserves.
Motion to Approve the Recognition of Deferred Revenue in the Operating Account Fund by Director Bagby
Second: Director Rogers
Motion passed by roll call vote
AYES: Bagby, Landman, Peters, King, Rogers, Slayter, Felder, Gjerde, Hopkins ABSENT: Elward, Fudge
BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
(10:04 a.m. - Video Time Stamp: 01:17:46)
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Director Bagby thanked Deb Emerson and Hannah Rennie for bringing Item 6 to the Board.
Director Hopkins thanked departing staff member, Willy Linares, Marketing Coordinator, for all his service to SCP.
PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
(10:05 a.m. - Video Time Stamp: 01:19:48)
Public Comment: Dick Dowd stated that he was impressed with SCP’s financial status.
ADJOURN
(10:07 a.m. - Video Time Stamp: 01:21:30)
The meeting was adjourned by unanimous consent.
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Staff Report – Item 02
To: Sonoma Clean Power Authority Board of Directors
From: Ryan Tracey, Director of Planning & Analytics
Geof Syphers, Chief Executive Officer
Issue: Receive Geothermal Opportunity Zone Update
Date: July 7, 2022
Background
The Geothermal Opportunity Zone (GeoZone) was established by the SCP Board of Directors and the Boards of Supervisors in Sonoma and Mendocino Counties to explore expanding local geothermal power capacity. The purpose of the GeoZone is to develop the resources necessary to allow SCP to stop relying on natural gas power plants altogether. To that end, the GeoZone is seeking to sustain existing local geothermal production and add 500 MW of new geothermal capacity.
Given the activity in the GeoZone initiative, staff is now including regular updates in Board and Committee packets and will also continue to provide updated information and materials at https://sonomacleanpower.org/geozone.
Public-Private Solicitation
Staff are focused on the formation of a public-private partnership with geothermal companies to provide technology, experience, and capital. Following the close of a solicitation on April 29, a multi-discipline team including staff and experts in geology, air quality, water, geothermal development, business, and engineering have completed a detailed review of proposals. A subsequent round of interviews offered the evaluation team the opportunity to ask detailed questions to ascertain technical and financial viability.
Ultimately, the evaluation team recommended three finalists to proceed to a final stakeholder engagement round. The three finalists participating in the stakeholder engagement round include the following proposals:
• Eavor Technologies – A Canadian geothermal technology company proposes to use its Advanced Closed Loop (ACL) Eavor Loop technology in the 11 of 49
GeoZone. Eavor Loop involves drilling and connecting two deep multilateral wellbores to circulate fluid through deep granitic base rock. The fluid flows through a heat exchanger at surface connected to a binary power cycle that is also closed-loop with no operational emissions. Eavor’s technology can target areas without permeability or water as long as heat and rock conductivity are present.
• Chevron New Energies – A subsidiary of Chevron proposes to develop 500- 700 MW of new geothermal capacity through a staged development plan including exploration wells, pilots, conventional geothermal projects, and Enhanced Geothermal Systems (EGS) and Advanced Closed Loop (ACL) development. Chevron New Energies plans to deploy its subsurface modeling expertise, well factory approach to cost reductions, financing capability, and California operating experience to achieve GeoZone objectives. • Cyrq Energy – An established geothermal operator and development company in the Western US proposes to deploy thermal storage technology at existing or new geothermal resources at the Geysers. Thermal storage is heated from electric power during hours when the grid has significant solar production, and then the storage is dispatched to superheat the steam of geothermal plants to run the turbines more efficiently and reshape power supply to better match hourly market demand—improving the financial viability and flexibility of geothermal power.
Stakeholder Engagement
The three finalists participated in a stakeholder engagement event SCP hosted on June 28. SCP invited a group representing labor, environment, environmental justice, and local government to meet the potential private partners and provide early pre-project input into our community values.
Staff is preparing a detailed summary of the stakeholder engagement event. The meeting summary, along with presentations from the finalists and feedback received following the meeting, will be posted on SCP’s website at https://sonomacleanpower.org/geozone by mid-July.
The results of the stakeholder event will inform staff’s recommendation for a GeoZone partnership, which will be brought for recommendation to the Community Advisory Committee and Board of Directors later this summer. SCP will then enter negotiations in forming a partnership agreement that will establish expectations for SCP’s power offtake and the shared contributions in pursuing GeoZone development.
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Staff Report – Item 03
To: Sonoma Clean Power Authority Board of Directors
From: Chad Asay, Director of the Advanced Energy Center Issue: Approve Additional Funding for the Existing On-Bill Finance Assistance Pilot Program and Delegate Authority to the CEO to Negotiate, Execute, and Amend a Professional Services Agreement for On-Bill Finance Administrator Agreement for a Not-to-Exceed Amount of $139,643 through June 30, 2023
Date: July 7, 2022
Requested Board Action
Approve additional funding for the existing On-Bill Finance Assistance Pilot Program and delegate authority to the Chief Executive Officer or his designee to negotiate, execute, and amend a Professional Services Agreement (“PSA”) with Frontier Energy Inc (“Frontier”) using SCP’s standard form PSA with the attached scope of work (Exhibit A) and Fee Schedule (Exhibit B), for an amount not to exceed $139,643 through June 30, 2023. This work is for SCP’s On-bill Finance Assistance pilot program to establish a service for SCP residential customers to purchase and install approved technologies through the Advanced Energy Center.
Background
SCP was awarded the California Energy Commission’s EPIC Grant 17-304 to, among other things, establish the Advanced Energy Center (Center) in order to speed deployment of market-ready energy efficiency technologies.
In addition to the CEC grant’s expectation to establish the physical Advanced Energy Center, the Lead Locally team also proposed in the grant application to explore innovative ways to overcome financial barriers to stimulating the energy efficiency market in our area through an on-bill finance program. Although it is not a grant requirement, by establishing this pilot program SCP will assist in stimulating markets for these technologies.
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In June 2020, the Board approved the pilot program and authorized the CEO to execute a PSA with Frontier. The term date was extended to June 30, 2022, without increasing the not to exceed amount at that time due to Frontier ability to bill that administrative work towards the CEC grant for that period.
Discussion
On-bill Finance Program
The On-bill Finance Program (OBF) program will be offered to SCP residential service customers in good standing to fund the cost of purchasing and installing eligible energy efficient equipment. The OBF program is designed to assist in the stimulation and deployment of the energy efficient (EE) technology marketplace both online and physically through the Advanced Energy Center (AEC). The OBF program will allow qualified customers to receive zero percent (0%) interest, no-fee, unsecured financing for eligible improvement(s).
Financing is available to qualified customers for up to one hundred percent (100%) of the actual installed cost of approved improvement(s), less rebates or incentives received by customer from SCP under eligible programs). The maximum loan amount available per service account is ten thousand dollars ($10,000). The maximum loan term for a customer is ten (10) years.
Program Administrator
Program administrator (Frontier Energy Inc., on behalf of SCP); supports marketing at SCP’s direction; oversees installer/ contractors’ installations at customers’ locations per SCP-approved OBF Applications and Agreements; resolves customer and installer/ contractor issues; approves installations; reports on-bill charge to SCP/billing agent; coordinates data collection. Work is to be billed on a per project basis with an increased project cost should a change order occur.
The term of the contract is through June 30, 2023, with a not-to-exceed amount of $139,643.
Fiscal Impact
Staff is requesting $139,643 for the Frontier Energy agreement. The Frontier Energy administrative fee will come out of the FY2022-23 budget. 14 of 49
Attachments
The Professional Services Agreement for the Sonoma Clean Power Authority with Frontier Energy for the On-bill Finance Administrator Agreement, available at this link or by request to the Clerk of the Board 15 of 49
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Staff Report – Item 04
To: Sonoma Clean Power Authority Board of Directors
From: Geof Syphers, CEO
Issue: Authorize Extension of SCP Resolution 2021-05 Permitting Remote Teleconference Meetings of the Board of Directors and Community Advisory Committee Pursuant to AB 361
Date: July 7, 2022
Requested Action
Authorize extension of SCP Resolution 2021-05 to permit remote teleconference meetings of the Board of Directors and Community Advisory Committee pursuant to AB 361.
Summary of the Item
On September 16, 2021, the Governor signed AB 361, which allows legislative bodies to meet virtually provided there is a state of emergency, and either (1) state or local officials have imposed or recommended measures to promote social distancing; or (2) the legislative body determines by majority vote that meeting in person would present imminent risks to the health and safety of attendees.
In order to continue to qualify for AB 361’s waiver of in-person meeting requirements, the Board must, within thirty (30) days of its first meeting under AB 361, and every thirty (30) days thereafter, make findings that (a) state or local officials continue to recommend measures to promote social distancing, or that (b) an in-person meeting would constitute an imminent risk to the safety of attendees. This item would extend Resolution 2021-25 by making the necessary findings to permit remote meetings.
Attachment
Resolution 2021-05 of the Board of Directors of the Sonoma Clean Power Authority
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RESOLUTION NO. 2021 - 05
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SONOMA CLEAN POWER
AUTHORITY AUTHORIZING VIRTUAL BOARD AND COMMITTEE MEETINGS PURSUANT TO AB 361
WHEREAS, the Sonoma Clean Power Authority (“SCP”) is committed to preserving and nurturing public access and participation in meetings of the Board of Directors; and
WHEREAS, all meetings of SCP’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend and participate in SCP’s meetings; and WHEREAS, starting in March 2020, in response to the spread of COVID-19 in the State of California, the Governor issued a number of executive orders aimed at containing the COVID-19 virus; and
WHEREAS, among other things, these orders waived certain requirements of the Brown Act to allow legislative bodies to meet virtually; and WHEREAS, pursuant to the Governor’s executive orders, SCP has been holding virtual meetings during the pandemic in the interest of protecting the health and safety of the public, SCP staff, and Directors; and
WHEREAS, the Governor’s executive order related to the suspension of certain provisions of the Brown Act expired on September 30, 2021; and WHEREAS, on September 16, 2021 the Governor signed AB 361 (in effect as of October 1, 2021 – Government Code Section 54953(e)), which allows legislative bodies to meet virtually provided there is a state of emergency, and either (1) state or local officials have imposed or recommended measures to promote social distancing; or (2) the legislative body determines by majority vote that meeting in person would present imminent risks to the health and safety of attendees; and WHEREAS, such conditions now exist in SCP, specifically, a state of emergency has been proclaimed related to COVID-19, Sonoma and Mendocino County officials are imposing and recommending measures to promote social distancing, and because of the ongoing threat of COVID-19, meeting in person would present imminent risks to the health and safety of attendees;
WHEREAS, these recommendations include the September 24, 2021 Recommendation of the Sonoma County Health Officer Dr. Sundari R. Mase which outlines specific social distancing recommendations for in-person meetings by local agencies within Sonoma County;
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SONOMA CLEAN POWER AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.
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Section 2. Remote Teleconference Meetings: Consistent with the provisions of Government Code Section 54953(e), the Board of Directors finds and determines that (1) a state of emergency related to COVID-19 is currently in effect; (2) local officials in Sonoma and Mendocino Counties have imposed or recommended measures to promote social distancing in connection with COVID-19, including indoor mask requirements and minimum recommend distance between attendees; and (3) due to the COVID-19 emergency, meeting in person would present imminent risks to the health and safety of attendees. Based on such facts, findings and determinations, the Board authorizes staff to conduct remote teleconference meetings of the Board of Directors, including the Community Advisory Committee and other legislatives bodies, under the provisions of Government Code Section 54953(e).
Section 3. Effective Date of Resolution. This Resolution shall take effect October 7, 2021, and shall be effective for 30 days or until this Resolution is extended by a majority vote of the Board of Directors in accordance with Section 4 of this Resolution.
Section 4. Extension by Motion. The Board of Directors may extend the application of this Resolution by motion and majority vote by up to thirty days at a time, provided that it makes all necessary findings consistent with and pursuant to the requirements of Section 54953(e)(3).
PASSED AND ADOPTED by the Board of Directors of the Sonoma Clean Power Authority this 7th day of October 2021, by the following vote:
JURISDICTION NAME AYE NO ABSTAIN/
ABSENT
Cloverdale Director Bagby X
Cotati Director Landman X
Fort Bragg Director Peters X
Petaluma Director King X
Rohnert Park Director Elward X
Santa Rosa Director Rogers X
Sebastopol Director Slayter X
Sonoma Director Felder X
Windsor Director Fudge X
County of Mendocino Director Gjerde X
County of Sonoma Director Hopkins X
In alphabetical order by jurisdiction
Chair, Sonoma Clean Power Authority
Attest:
Clerk of the Board
APPROVED AS TO FORM:
Special Counsel,
Sonoma Clean Power Authority
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Staff Report – Item 05
To: Sonoma Clean Power Authority Board of Directors
From: Stephanie Reynolds, Director of Internal Operations Issue: Adopt a Resolution Setting a Date, Hour, and Place for Regular Meetings
Date: July 7, 2022
Recommendation:
Adopt Resolution Setting a Date, Hour, and Place for Regular Meetings.
Background:
Section 54954(a) of the California Government Code states that legislative bodies shall provide, by ordinance, resolution, bylaws, or by whatever other rule is required for the conduct of business by that body, the time and place for holding regular meetings. The Board of Directors adopted Resolution Nos. 2021-07 and 2018-03 establishing a time and place for regular meetings of the Board of Directors. This is currently 8:45 am on the first Thursday of each month at the Sonoma Clean Power Authority Headquarters (431 E St., Santa Rosa CA, 95404).
Discussion:
At its June meeting, the Board of Directors discussed transitioning to hybrid meetings.
As part of this discussion, the Board requested an item be brought forward to modify the time of its regular meetings from 8:45 a.m. to 9:00 a.m. The attached resolution would make this change. If adopted, the Board’s regular meeting would be held on the first Thursday of each month at 9:00 a.m., at the Sonoma Clean Power Authority Headquarters (431 E St., Santa Rosa CA, 95404). This change would take effect beginning with the August, 2022 Board meeting.
While not explicitly set forth in the draft resolution, it does not affect the Board’s ability to utilize AB 361. The Board retains the ability to conduct hybrid or fully remote 21 of 49
meetings under AB 361 as long as permitted under that law in response to the COVID-19 pandemic and statewide declaration of emergency.
Attachments:
Draft Resolution 2022-02 Setting a Time and Place for Regular Meetings 22 of 49
RESOLUTION NO. 2022 – 02
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SONOMA CLEAN POWER
AUTHORITY SETTING A TIME AND PLACE FOR REGULAR MEETINGS WHEREAS, section 54954(a) of the California Government Code states that legislative bodies shall provide, by ordinance, resolution, bylaws, or by whatever other rule is required for the conduct of business by that body, the time and place for holding regular meetings; and
WHEREAS, Section 4.8 of the Third Amended and Restated Joint Powers Agreement Relating to and Creating the Sonoma Clean Power Authority dated October 13, 2016 provides that the date, hour and place of each regular meeting shall be fixed by resolution or ordinance of the Board of Directors; and WHEREAS, the Board of Directors did duly pass and adopt Resolution Nos. 2018-03 and 2021-07, which established the time and place for regular meetings of the Board of Directors at the Sonoma Clean Power Authority; and
WHEREAS, the Board of Directors now wishes to amend the time of its regular meetings so that they will be held on the first Thursday of each month at 9:00 a.m. at the Sonoma Clean Power Authority Headquarters.
NOW, THEREFORE BE IT RESOLVED, by the Board of Directors of the Sonoma Clean Power Authority:
Section 1. That the foregoing recitals are true and correct and a substantive part of this Resolution.
Section 2. Commencing in August 1, 2022, the date, hour, and place for regular meetings of the Board of Directors as follows:
Date & Hour: First Thursday of each month at 9:00 AM.
Place: Sonoma Clean Power Headquarters, 431 E Street, Santa Rosa CA, 95404
Section 3. That Resolution No. 2021-07 is hereby repealed in its entirety.
Section 4. That the provisions of this Resolution shall become effective upon adoption.
[SIGNATURES APPEAR ON THE FOLLOWING PAGE]
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DULY ADOPTED this 7th day of July 2022
JURISDICTION NAME AYE NO ABSTAIN/
ABSENT
Cloverdale Director Bagby
Cotati Director Landman
Fort Bragg Director Peters
Petaluma Director King
Rohnert Park Director Elward
Santa Rosa Director Rogers
Sebastopol Director Slayter
Sonoma Director Felder
Windsor Director Fudge
County of Mendocino Director Gjerde
County of Sonoma Director Hopkins
In alphabetical order by jurisdiction
David King, Chair, Sonoma Clean Power
Authority
Attest:
Darin Bartow, Clerk of the Board
APPROVED AS TO FORM:
Joshua Nelson, Special Counsel,
Sonoma Clean Power Authority
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Staff Report – Item 06
To: Sonoma Clean Power Authority Board of Directors
From: Stephanie Reynolds, Director of Internal Operations Mike Koszalka, Chief Operating Officer
Issue: Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate
Date: July 7, 2022
ADVANCED ENERGY CENTER
The Energy Center has now assisted with over 400 home improvement projects.
Almost a quarter of those homes are utilizing the 0% financing program.
We recently hosted students from the Mike Hauser Academy, members of the Sonoma Bike Coalition, AIA Redwood Empire, Next Gen Trades Academy, held a celebrate Community Legacy Fund meeting, and a GeoZone Public Engagement meeting. We have also offered classes on the benefits of battery storage and heat pump water heaters.
CPUC-FUNDED FLEXMARKET
SCP is pleased to announce that on June 2, Sonoma Clean Power’s first CPUC-funded energy efficiency program was approved. Known as the “FLEXmarket” program, Sonoma Clean Power will receive $3.1 million dollars over a three-year period.
The program plan and application to the CPUC was brought to the Committee on December 12, 2021 and was ratified and approved by the Board of Directors at the January 6, 2022 Board meeting.
FLEXmarket is an established incentive program for energy efficiency projects in existing buildings. SCP will pay incentives based on time-of-day avoided energy costs for projects that permanently reduce total energy use and shift energy use away from peak hours. The program is run through Recurve’s FLEXmarket platform. Incentives are based on meter-measured performance. Any energy efficiency project with measured savings qualifies, including lighting and refrigeration. Our program 25 of 49
manager, Felicia Smith, will provide a more in-depth presentation at the Board meeting. This is Sonoma Clean Power’s first CPUC funded program and first energy efficiency program.
COMMUNITY NEEDS ASSESSMENT FOR PROGRAM DEVELOPMENT
SCP is preparing a Request for Qualifications to identify potential partners and consultants to conduct community needs assessments. The assessments will highlight customers’ needs, wishes, and concerns when it comes to energy efficiency and electrification. This will inform the development of more impactful customer programs that meet community needs.
This work is part of SCP's commitment, through the Programs Strategic Action Plan and Programs Equity Framework, to focus on the needs of the communities we serve.
SCP plans to launch up to five community needs assessments through 2024 that will address five different categories of needs:
Transportation and mobility
Home energy use
Home resiliency
Commercial building energy use and commercial resiliency Agricultural energy use
Watch our Solicitations & Business Opportunities page for more information, subscribe for updates, and to help spread the word:
https://sonomacleanpower.org/solicitations-business-opportunities
GRIDSAVVY REWARDS
Staff launched “GridSavvy Rewards” to customers on May 9, 2022. GridSavvy Rewards is an extension of the existing GridSavvy program that reduces energy load of customers when needed. GridSavvy was previously only available to customers with smart EV chargers, smart thermostats, and smart water heaters. The new GridSavvy Rewards program now also includes an option for customers to participate without special technology or installed devices. This evolution will allow customers to financially benefit from simple changes in behavior and without relying on making financial investments.
GridSavvy Rewards encourages, incentivizes, and notifies our customers to conserve energy during hours of high demand on the grid. Customers can choose whatever 26 of 49
energy saving strategy works for them and their lifestyle (e.g. pre-cooking meals, turning off lights, turning off plug loads, delaying appliance use, etc.). For more information see https://www.sonomacleanpower.org/earnrewards.
GridSavvy Rewards pays customers $2 for every kWh saved from their baseline during an energy saving event. Customers may also choose to donate their rewards to a selection of local Community Partners. For program launch, we are also offering $25 enrollment incentive bonuses.
This program is intended to help customers reduce energy bills, make them aware of their energy use and their impacts on the electricity grid, reduce wholesale energy costs for SCP during peak periods, reduce Resource Adequacy costs, reduce emissions from the electricity grid, and support grid reliability and reduce the risk of rolling black outs.
We directly communicated with CARE/FERA customers and customers that had the top 10% of summer peak hour energy usage in 2021. We sent emails and direct mailers. A copy of one of the postcards is attached to the end of this report.
In total, approximately 54,000 customers were contacted directly. We also distributed a follow-up postcard to the initial mailing list customers that had not yet enrolled.
Though our initial launch was targeted at the aforementioned customers, the program is open to all customers.
As of 6/8/22 over 1,300 customers have enrolled (which includes 1,013 CARE/FERA customers and 199 customers in Mendocino County). SCP has been able to reach customers that have historically been left out of programs; most notably Spanish speakers and customers that do not have services such as internet, email, or cell phones. All communication from SCP has been in English and in Spanish. SCP has enrolled customers over the phone that do not have access to internet, sent paper enrollment forms to customers that do not feel comfortable being enrolled over the phone, initiated automated voice calls to landlines for customer that do not have cell phones or email, provided checks instead of electronic gift cards to those that do not utilize or have internet, and spoken directly to dozens of customers over the phone to educate them on their energy use and how they can make a difference.
This evolution in the GridSavvy program is the direct result of our Programs Equity Framework, and our focus on serving those who are traditionally left out.
INTEGRATED RESOURCE PLAN UPDATE
Staff reintroduced SCP’s Integrated Resource Plan to the Board in April 2022. In that presentation, staff projected returning to the Board as soon as this month (July). As 27 of 49
described in last month’s meeting, several factors—including market dynamics caused by the war in Ukraine, supply shortages and new CPUC procurement orders—have led staff to delay finalizing the analysis for selecting a portfolio of supply and demand resources. Staff is now planning on presenting the Integrated Resource Plan and portfolios to the Board in October.
Although the presentation has been delayed, staff has been busy making improvements to process and building analytic products that will greatly benefit the 2022 Integrated Resource Plan. Activities to support the Integrated Resource Plan include the following:
• Completed and tested workflow for co-optimizing a portfolio in Ascend PowerSimm for targets on hourly emissions, cost, reliability, and compliance • Finished workshops with Procurement on calibrating assumptions on cost, availability, and contract strategy for candidate resources • Established a baseline portfolio for meeting minimum compliance obligations, including Mid-term Reliability Order procurement and RPS targets • Hosted a meeting with the Regional Climate Protection Authority (RCPA) to discuss opportunities to align climate goals between agencies, with a particular focus on cross-sector opportunities for SCPA to support local GHG reductions
• In collaboration with Programs, built a robust forecast of the energy and carbon impact of local EV adoption and residential building electrification anchored on territory-specific data but aligned with the trends required in the 2022 CARB Scoping Report’s preferred alternative for meeting 2045 net neutrality
• Submitted comments on CPUC’s ruling on 2022 IRP process to support electric sector GHG targets, but to also increase focus on meeting expected increases in load from cross-sector electrification
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MONTHLY COMPILED FINANCIAL STATEMENTS
The year-to-date change in net position is slightly better than projections. Revenue from electricity sales is under budget projections by approximately 2%, and cost of energy is over by approximately 1%. Year-to-date electricity sales reached $168,699,000.
SCP maintains a balanced portfolio by procuring electricity from multiple sources.
Net position reached a positive $99,512,000. In addition to Net Position, SCP maintains an Operating Account Fund of $26,000,000 at the end of the period.
Approximately $63,511,000 is set aside for operating reserves.
Aside from cost of energy, overall other operating expenses continued near or slightly below planned levels for the year.
BUDGETARY COMPARISON SCHEDULE
The accompanying budgetary comparison includes the 2021/22 amended budget approved by the Board of Directors in April 2022.
The budget is formatted to make comparisons for both the annual and the year-to-date perspective. The first column, 2021/22 YTD Budget, allocates the Board approved annual budget at expected levels throughout the year with consideration for the timing of additional customers, usage volumes, staffing needs etc.
The cost of electricity is more than the budget-to-date by less than 1%. Variation in this account is typically due to fluctuating cost of energy on open position purchases.
Major operating categories of Data Management fees and PG&E Service fees are based on the customer account totals and are closely aligned to budget.
In addition to the items mentioned above, SCP continues its trend of remaining near or under budget for most of its operating expenses.
ATTACHMENTS
GridSavvy Flier
May 2022 Financials
UPCOMING MEETINGS
Community Advisory Committee – July 21, 2022
Board of Directors – August 4, 2022
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1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Sonoma Clean Power Authority
Management is responsible for the accompanying special purpose statement of Sonoma Clean Power Authority (a California Joint Powers Authority) which comprise the budgetary comparison schedule for the period ended May 31, 2022, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of Sonoma Clean Power Authority.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
Sonoma Clean Power Authority’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
June 29, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 31 of 49
2021/22 YTD
Amended Budget
2021/22 YTD
Actual
2021/22 YTD
Amended Budget
Variance (Under)
Over
2021/22 YTD
Actual / Amended
Budget %
2021/22
Amended Budget
2021/22 Amended
Budget Remaining
REVENUE AND OTHER SOURCES: Electricity (net of allowance) * 169,181,204 $ 166,581,188 $ (2,600,016) $ 98% 191,599,000 $ 25,017,812 $ Evergreen Premium (net of allowance) 1,906,303 2,117,703 211,400 111% 2,074,000 (43,703) Inflow from Operating Account Fund Reserves - - - 0% - - CEC Grant 1,892,917 895,797 (997,120) 47% 2,065,000 1,169,203 BAAQMD grant 45,833 (15,575) (61,408) -34% 50,000 65,575 Interest income 770,000 307,055 (462,945) 40% 840,000 532,945 Total revenue and other sources 173,796,257 169,886,168 (3,910,089) 98% 196,628,000 26,741,832EXPENDITURES AND OTHER USES:CURRENT EXPENDITURES Cost of energy and scheduling 151,141,674 152,229,180 1,087,506 101% 165,468,936 13,239,756 Data management 2,931,455 2,844,589 (86,866) 97% 3,198,000 353,411 Service fees- PG&E 891,878 893,006 1,128 100% 973,000 79,994 Personnel 5,683,333 5,187,495 (495,838) 91% 6,200,000 1,012,505 Outreach and communications 1,237,500 888,555 (348,945) 72% 1,350,000 461,445 Customer service 332,750 339,303 6,553 102% 363,000 23,697 General and administration 1,045,000 1,112,573 67,573 106% 1,140,000 27,427 Legal 375,833 247,637 (128,196) 66% 410,000 162,363
Regulatory and compliance 394,167 246,255 (147,912) 62% 430,000 183,745 Accounting 229,583 209,820 (19,763) 91% 245,000 35,180 Legislative 110,000 40,000 (70,000) 36% 120,000 80,000
Other consultants 206,250 213,741 7,491 104% 225,000 11,259 Industry memberships and dues 491,333 440,577 (50,756) 90% 536,000 95,423 Program implementation 5,170,000 2,522,176 (2,647,824) 49% 5,640,000 3,117,824 Program - CEC grant 3,666,667 1,210,570 (2,456,097) 33% 4,000,000 2,789,430 Total current expenditures 173,907,423 168,625,477 (5,281,946) 97% 190,298,936 21,673,459 OTHER USES Capital outlay 1,276,917 991,418 (285,499) 78% 1,393,000 401,582 Total Expenditures, Other Uses and Debt Service 175,184,340 169,616,895 (5,567,445) 97% 191,691,936 22,075,041 Net increase (decrease) in available fund balance (1,388,083) $ 269,273 $ 1,657,356 $ 4,936,064 $ 4,666,791 $ * Represents sales of approximately 2,058,000 MWh for 2021/22 YTD actual.
RESERVES Current Balance
% of Long-Term Target Long-Term Target Balance
Operating Reserve (as of June 30, 2021) 63,511,000 $ 44% 145,983,000 $
SONOMA CLEAN POWER AUTHORITY
Eleven Months Ended May 31, 2022
BUDGETARY COMPARISON SCHEDULE
OPERATING FUND
See accountants' compilation report. 2
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Net increase (decrease) in available fund balance
per budgetary comparison schedule: $ 269,273
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:
Subtract depreciation expense (1,258,577)
Add back capital asset acquisitions 1,013,317
Add back certain program expenses
recognized for budget purposes only (200,000)
Change in net position (175,987) $
REVENUES, EXPENSES AND CHANGES IN NET POSITION
Eleven Months Ended May 31, 2022
SONOMA CLEAN POWER AUTHORITY
OPERATING FUND
BUDGET RECONCILIATION TO STATEMENT OF
See accountants' compilation report.
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3 1
ACCOUNTANTS’ COMPILATION REPORT
Management
Sonoma Clean Power Authority
Management is responsible for the accompanying financial statements of Sonoma Clean Power Authority (a California Joint Powers Authority) which comprise the statement of net position as of May 31, 2022, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
Sonoma Clean Power Authority’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
June 29, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 34 of 49
Current assets
Cash and cash equivalents 51,494,065 $
Accounts receivable, net of allowance 22,418,038
Other receivables 984,288
Accrued revenue 11,052,939
Prepaid expenses 2,044,827
Deposits 4,503,531
Total current assets 92,497,688
Noncurrent assets
Unrestricted cash in Rate Stabilization Fund 26,000,000 Land 860,520
Capital assets, net of depreciation 18,789,846
Deposits 846,256
Total noncurrent assets 46,496,622
Total assets 138,994,310
Current liabilities
Accrued cost of electricity 10,653,196
Accounts payable 1,023,577
Other accrued liabilities 1,255,995
User taxes and energy surcharges due to other governments 549,316 Total current liabilities 13,482,084
Rate Stabilization Fund 26,000,000
Investment in capital assets 19,650,366
Unrestricted 79,861,860
Total net position 99,512,226 $
NET POSITION
SONOMA CLEAN POWER AUTHORITY
STATEMENT OF NET POSITION
As of May 31, 2022
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
See accountants' compilation report. 2
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OPERATING REVENUES
Electricity sales, net 163,099,195 $
Evergreen electricity premium 2,117,703
Grant revenue 4,362,215
Total operating revenues 169,579,113
OPERATING EXPENSES
Cost of electricity 152,229,180
Contract services 8,468,899
Staff compensation 5,187,495
General and administration 1,708,759
Program rebates and incentives 1,209,245
Depreciation 1,258,577
Total operating expenses 170,062,155
Operating income (loss) (483,042)
NONOPERATING REVENUES (EXPENSES)
Interest income 307,055
Nonoperating revenues (expenses), net 307,055
CHANGE IN NET POSITION (175,987)
Net position at beginning of period 99,688,213
Net position at end of period 99,512,226 $
Eleven Months Ended May 31, 2022
AND CHANGES IN NET POSITION
STATEMENT OF REVENUES, EXPENSES
SONOMA CLEAN POWER AUTHORITY
See accountants' compilation report. 3
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CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 161,700,269
Other operating receipts 14,070,902
Payments to electricity suppliers (160,151,095)
Payments for other goods and services (10,537,085)
Payments for staff compensation (5,119,740)
Tax and surcharge payments to other governments (2,171,426) Payments for program rebates and incentives (2,261,420) Net cash provided (used) by operating activities (4,469,595)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments to acquire capital assets (3,455,273)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 322,569
Net cash provided (used) by investing activities 322,569 Net change in cash and cash equivalents (7,602,299)
Cash and cash equivalents at beginning of year 85,096,364 Cash and cash equivalents at end of period $ 77,494,065 Reconciliation to the Statement of Net Position
Unrestricted cash and cash equivalents (current) $ 51,494,065 Unrestricted cash and cash equivalents (noncurrent) 26,000,000 Cash and cash equivalents $ 77,494,065
Eleven Months Ended May 31, 2022
STATEMENT OF CASH FLOWS
SONOMA CLEAN POWER AUTHORITY
See accountants' compilation report. 4
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Operating income (loss) $ (483,042)
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation expense 1,258,577
Revenue adjusted for provision for uncollectible accounts (121,390) (Increase) decrease in:
Accounts receivable (3,521,519)
Other receivables 543,156
Accrued revenue (2,074,335)
Prepaid expenses (934,485)
Deposits 4,604,051
Increase (decrease) in:
Accrued cost of electricity (1,422,048)
Accounts payable (551,034)
Accrued liabilities (1,963,514)
User taxes due to other governments 29,188
Supplier security deposits 166,800
Net cash provided (used) by operating activities $ (4,469,595)
SONOMA CLEAN POWER AUTHORITY
STATEMENT OF CASH FLOWS (continued)
Eleven Months Ended May 31, 2022
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
See accountants' compilation report. 5
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Staff Report – Item 07
To: Sonoma Clean Power Authority Board of Directors
From: Neal Reardon, Director of Regulatory Affairs
Geof Syphers, Chief Executive Officer
Issue: Receive Legislative and Regulatory Updates and Provide Direction as Appropriate
Date: July 7, 2022
Requested Action
Receive legislative and regulatory updates and provide direction as appropriate.
Regulatory Updates
PG&E General Rate Case Litigation Underway
Sonoma Clean Power staff, working with a coalition of Northern California CCAs, recently submitted testimony on a variety of proposed customer charges in PG&E’s General Rate Case for the triennial period beginning 2023. In their initial Application, the utility requested that the California Public Utilities Commission approve a 2023 gas distribution, transmission and storage, electric distribution, and electric generation base revenue requirements of $15.46 billion, an increase of $3.56 billion over the 2022 adopted revenue requirements. PG&E is seeking an increase in rates and charges effective January 1, 2023
General Rate Cases govern the rate changes – and corresponding shareholder profits – utilities are permitted to generate. Assets the utility owns, such as distribution lines or generators, generate profits so long as these assets are determined to be used and useful. In addition, the statute requires that utilities must demonstrate that any costs they recoup from CCA customers were made on behalf of those customers. As a general measure, transmission and distribution costs are charged to all customers, while electricity generation costs are charged to customers who receive the electricity. 39 of 49
Testimony submitted to the assigned Judge highlights multiple instances where PG&E’s Application would hoist costs onto CCA customers that are not being made on their behalf. These include proposed upgrades to the Gateway natural gas generation station, extending the operating life of 9 hydroelectric facilities, and categorizing a new battery storage project as a distribution asset to be paid for by all customers.
Rebuttal testimony from PG&E, followed by evidentiary hearings and subsequent briefs will take place through this Summer and Fall. The Judge intends to issue a proposed decision adopting rate changes in the 4th quarter of the year, for implementation January 1, 2023. SCP staff will remain deeply engaged to advocate for close oversight of utility costs and shareholder responsibility for poor investments.
Supreme Court Removes EPA’s Authority to Regulate GHGs
On June 30, the U.S. Supreme Court ruled that the EPA does not have authority to regulate greenhouse gas emissions from power plants, essentially gutting the Clean Air Act. Justice Roberts asserted that Congress must specifically provide the EPA with authority to regulate greenhouse gas emissions, and that the Clean Air Act itself does not provide that power to the EPA. The full repercussions of this decision are not yet clear to staff, but it is fair to predict that many kinds of regulations on coal and fossil methane power plants will be lifted, harming climate progress.
Legislative Update
The California legislature passed its budget and is working to pass a number of junior budgets to clarify the details, including SB 122 the omnibus energy bill. SB 122 is far-reaching, and mostly contains positive elements to support grid reliability, transmission and renewable projects, and financial help for people unable to pay their bills early in the pandemic. However, the bill also contains a seriously problematic order for the Department of Water Resources to build 5,000 MW of new fossil gas-fired power plants. The better parts of the bill include:
• Adds $1.2B in debt relief for residential customers who couldn’t pay power or water bills in 2020 or 2021.
• Orders the CEC to create a program for providing incentives for long-duration storage of virtually any technology type except pumped hydro and lithium ion batteries.
• Orders the CEC to fund incremental capacity additions from existing renewable power sources, which may be supportive of SCP’s GeoZone efforts. 40 of 49
• Orders CEC to create the Distributed Electricity Backup Assets Program to incentivize more dispatchable resources, including (but not limited to) fuel cells and batteries. It unclear if fossil methane gas is allowed for such fuel cells. • Orders the CEC to create a Demand-Side Grid Support Program for load shedding, which could help other regions adopt programs similar to SCP’s GridSavvy.
• Creates three different levels of customer subsidy based on income, which modifies the existing CARE program starting in July 2024. • Orders the CEC to quickly study summer reliability through 2026 and report back on critical actions by January 2023.
Bill Author Summary Position
AB 1814
Transportation
electrification:
community choice
aggregators
Grayson Withdrawn – Bill would have accelerated
local and regional transportation
electrification by allowing CCAs to apply
for CPUC funding for electric vehicle
infrastructure. Sponsor was CalCCA.
Support
Bill withdrawn by
Author
AB 1944
Local
government:
open and public
meetings
Lee Facilitates the continued use of
teleconference meetings for local
governments, including SCP.
Support
AB 2061
Transportation
electrification:
electric vehicle
charging
infrastructure
Ting Requires data collection of EV chargers to
monitor reliability. This bill would require
EV charging companies to report the days
when their equipment is not functioning,
and could lead to future legislation
requiring more timely repair of charging
equipment.
Support
Action by Chair and
Vice Chair
AB 2316
Community
Renewable
Energy Program
Ward Creates the Community Renewable Energy
Program to provide an IOU pathway for
solar for communities that have not
benefited from current rooftop solar
initiatives. Not likely to produce any
results, however, because IOUs are
attempting to cancel their local solar
programs (see AB 2838)
Watch
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Bill Author Summary Position
AB 2399
Electrical services:
provider of last
resort
Mayes Removes the cap on direct access for for-profit energy service providers in situations where an IOU chooses to stop
being the Provider of Last Resort.
Sponsored by SDG&E, presumably
because the IOU wishes to find a way to
create a direct access company to serve
the most profitable electric customers and
get out of serving residential customers.
The bill would cause a large cost shift onto
residential and small business customers if
it were to pass.
Dead
AB 2696
Electricity:
renewable energy
and zero-carbon
resources:
transmission
planning
E. Garcia Would require the CEC to study how to
lower the cost of new transmission needed
for new renewable energy systems.
However, would also remove the
requirement for reviewing the necessity
and cost for new transmission projects.
Watch
AB 2703
Zero-emission
fueling station
reliability
standards
Muratsuchi Studies the reliability of ZEV refueling
stations.
Watch
AB 2838
Electrical
corporations:
green tariff shared
renewables
program
O’Donnell Allows an IOU to terminate a green tariff
shared renewables (GTSR) program. SCP
successfully lobbied against a provision
that would have allowed the costs of
cancelling an IOU 100% renewables
program to other customers who were
never enrolled in the program.
Neutral
SCP formerly opposed
the bill, but with June
23 edits removed
opposition.
AB 2937
Electrical
corporations:
wildfire mitigation
and climate
adaptation
expenditures
Calderon Allows IOUs to securitize costs for wildfire
and climate adaptation investments and
spread those costs across all customers
over longer time periods. It is unusual to
defer charging ratepayers for operations
and maintenance, and staff are exploring
the potential consequences for ratepayers.
Watch
ACR 188
CAISO
Regionalization
Study
Holden The proposed resolution would ask the
California Independent System Operator
to issue a study summarizing the impacts
of expanding regional cooperation with
Colorado and Nevada on California’s
climate goals.
Watch
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Bill Author Summary Position
SB 833
Community
Energy Resilience
Act
Dodd Creates grants for regional resiliency
planning, including for PSPS events.
Prioritizes low-income, disadvantaged and
PSPS-affected communities.
Support
Action by Chair and
Vice Chair
SB 839
Electricity:
demand response
Dodd Demand response bill that allows all
customers (including CCA customers) to
participate in an IOU load management
program. Possible concern is that it could
prevent CCAs from managing their own
load and forecasting accurately, which in
turn would increase ratepayer costs.
Watch
SB 852
Climate resilience
districts
Dodd Allows local governments to form Climate
Resilience Districts to raise and allocate
funds for capital projects addressing
climate mitigation and/or adaptation.
Specifically recognizes the Sonoma County
Regional Climate Protection Authority as a
Climate Resilience District.
Support
SB 881
Load-serving
entities:
integrated
resource plans
Min Dead. CalCCA successfully killed this bill
that would have created new powers for
the CPUC to order specific resource
procurement for individual CCAs, thus
taking away each CCA Board’s powers of
procurement. This was a major victory in
sustaining our ability to accelerate
solutions to the climate crisis, especially
when considering that the CPUC’s own
Reference System Plan has higher
greenhouse gas emissions than SCP’s
existing portfolio.
Oppose
Action by Chair and
Vice Chair
BILL IS DEAD
SB 884
Electricity:
expedited utility
distribution and
transmission
infrastructure
undergrounding
program
McGuire Would require accelerated distribution
line undergrounding plans, defer IOU
profits from that work until 5 years have
passed with no PSPS events or utility fires,
and require cooperation from telecom
companies using the affected power
poles.
Support
SB 887
Electricity:
transmission
facility planning
Becker Orders the CPUC to identify the critical
new transmission systems needed to
rapidly expand renewable energy in the
CAISO system through 2035. Includes
requirements to study wildfire impacts.
Watch
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Bill Author Summary Position
SB 1020
Clean Energy,
Jobs and Energy
Affordability Act
of 2022
Laird, Atkins,
Caballero,
Durazo
Creates interim climate goals for 2035 and
2040 in the electric power sector as well as
forms a new state organization to disburse
state and federal funding relating to
mitigating high energy costs for low-income and disadvantaged communities.
SCP supports the bill, but shared an
improvement that should be made to
allow State agencies to buy 100%
renewable power from existing services
like EverGreen, and avoid requiring
creating entirely new services just for State
agencies.
Support
Board delegated
authority to staff to
take a position when
valuable
SB 1112
Energy suppliers:
notice and
recordation of a
decarbonization
charge.
Becker Supports on-bill financing for building
decarbonization investments through
creating a deed notification requirement.
Support
Action by Chair and
Vice Chair
SB 1158
Retail electricity
suppliers:
greenhouse gas
emissions:
integrated
resource plans
Becker Would change reporting requirements for
GHG emissions to a 24/7 structure. Author
closely engaged with SCP and has
addressed all of SCP’s important concerns,
mostly around ensuring battery storage is
properly reported.
Support
Previously opposed
unless amended
SB 1174
Electricity:
resource
adequacy
requirements:
eligible
renewable energy
or energy storage
resources:
transmission and
interconnection
Hertzberg The bill originally would have provided
waivers for situations where
interconnection delays cause deficiencies
in resource adequacy compliance.
However, SDG&E asked the Chair of the
policy committee to remove the RA waiver,
and the Author did. It is unclear to staff
how the bill still has a purpose, so staff are
watching for further changes. Sponsor is
American Clean Power Association.
Watch
SB 1230
Zero-emission and
near-zero
emission vehicle
incentive
programs:
requirements.
Limón Would make changes to how EV incentives
are accessed.
Watch
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Bill Author Summary Position
SB 1287
Electric service
providers and
community choice
aggregators:
financial security
requirements.
Bradford Bill is dead.
Increases financial security requirements
for CCAs to protect IOUs from absorbing
CCAs customers in adverse market
conditions. In its current form, the bill
could prevent new CCAs from forming and
increase ratepayer costs for all CCAs. SCP
is advocating for some reasonable parts of
the bill, such as increasing the minimum
bond posting from $147,000 to $500,000
and eliminating language that would have
allowed CCA bonds to be virtually
unlimited and in the billions.
n/a
SB 1328
Prohibited
investments and
contracts: Russia
and Belarus.
McGuire Prohibits California State investments in
Russia and Belarus in response to Russia’s
war on Ukraine.
Support
Action by staff in
response to guidance
by Board
SB 1340
Property taxation:
new construction:
active solar
energy systems
and nonqualified
active solar
energy systems.
Hertzberg Would extend the deferral of property tax
reassessments for commercial properties
having solar arrays.
Watch
SB 1385
Electricity:
multifamily
housing local
solar program.
Cortese Would require IOUs to construct utility-owned solar arrays on or near multifamily housing. Potential significant concerns if
this removed customers from CCA service
without significant customer and climate
benefits. Notably, the bill does not require
systems to offset greenhouse gas
emissions.
Watch
SB 1376
State Energy
RCDC: strategic
plan: zero-carbon
resources.
Stern Strategic plan to connect 6,000 MW of
new renewable power per year to
California’s transmission system starting in
2025.
Watch
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Bill Author Summary Position
SB 1393
Energy:
appliances: local
requirements
Archuleta Would create a new requirement for cities
and counties wishing to phase out natural
gas in new construction to submit plans to
the California Energy Commission.
Originally, the bill would have significantly
increased legal risks to cities adopting
reach codes to phase out dependency on
fossil methane gas, however the author
recently took amendments from CSAC to
convert the bill to relatively meaningless
language in which the CEC is able to
provide “technical support” to cities
passing reach codes. As such, SCP has
withdrawn its original opposition.
Neutral
SB 1432
Electricity:
resource
adequacy
requirements:
electric service
providers.
Hueso Affects how generating resources used to
provide resource adequacy are selected or
approved and how costs of backstop
procurement are allocated.
Watch
SCR 53
Climate change
McGuire Resolution declaring the global climate
crisis
Support
Action by staff
Attachments
➢ Letter supporting NBNCBC, available at this link or by request to the Clerk of the Board
➢ Letter opposing SB 1136 (Portantino), available at this link or by request to the Clerk of the Board
➢ Letter supporting SB 1020 (Laird), available at this link or by request to the Clerk of the Board
➢ Letter AB 2838 (O’Donnell) – Removing Opposition, available at this link or by request to the Clerk of the Board
➢ Letter supporting SB 1158 (Becker), available at this link or by request to the Clerk of the Board
➢ Letter SB 1393 – Removing Opposition (Archuleta), available at this link or by request to the Clerk of the Board
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Staff Report – Item 08
To: Sonoma Clean Power Authority Board of Directors
From: Chris Golik, Revenue Manager
Erica Torgerson, Director of Customer Service
Issue: Approve the Continued Use of New Customer Rates Effective July 1, 2022
Date: July 7, 2022
Recommendation
Approve the continued use of new rates, adopted on July 1, 2022, under the CEO’s authority to make temporary rate changes, ensuring all SCP customers are at or below PG&E’s June 1, 2022 generation rates (including fees).
Background
SCP previously changed rates on April 1, 2022 to match bundled service bills based on PG&E’s rates that took effect on March 1, 2022. Subsequently, PG&E updated rates on June 1, 2022 to implement various CPUC-approved revenue requirements and rate design changes as detailed in Advice Letter 6603-E.
Per Section 4.5.2.1.1 of SCPA’s Joint Powers Agreement, “…the Chief Executive Office may change any rate for power sold by the Authority or any charge for services provided by the Authority if (a) the need for the change arises from…(ii) a change in rates or charges imposed on the Authority or its customers by PG&E, the CPUC, or any other regulatory agency…; and (b) the Chief Executive Officer determines, following consultation with the Chair of the Board of Directors, that the change is reasonably necessary for budgetary reasons or to keep the Authority's rates and charges competitive. Changes in rates or charges made by the Chief Executive Officer under this Section shall be brought to the Board of Directors at the next scheduled meeting for consideration and shall expire after 90 days unless ratified by the Board of Directors.”
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Discussion
On June 1, 2022, PG&E updated their distribution rates, generation rates, and the allocation of PCIA and franchise fees between rate schedules.
Changes to distribution rates impact both SCP and bundled customers, and increased by approximately 3% in total.
PG&E’s changes to generation rates and fee allocations resulted in an increase in some rate components and a decrease in others. In response, after consultation with the Chair and Vice Chair of the Board of Directors, the CEO decided to lower rates on July 1, 2022 to match PG&E for any rate component that was above PG&E. SCP did not increase any rate components, and as a result some SCP rates are below PG&E’s.
SCP’s rates are now the same or lower than PG&E’s rates on a total bill basis for all customers.
Fiscal Impact
The July 1, 2022, rate reduction is expected to decrease FY2022-23 revenue by approximately $1.5M or 0.6% of budgeted electricity sales.
Attachments
SCP Rate Schedule Effective July 1, 2022, available at this link or by request to the Clerk of the Board
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Staff Report – Item 09
To: Sonoma Clean Power Authority Board of Directors
From: Kate Kelly, Director of Public Relations and Marketing Issue: Receive Presentation on Brand Awareness Survey Findings Date: July 7, 2022
Recommendation
Receive a presentation on the summary of findings from recent Brand Awareness survey.
Background
As a continuation of market and demographic research being conducted by Sonoma Clean Power to better understand our customers, non-customers and communities, a comprehensive Brand Awareness survey was mailed to residential customers and non-customers in Sonoma and Mendocino counties, with an invitation to take the survey online. Communication was sent in Spanish and English languages.
Attachments
None
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