Item 4
PRESENTATION
Approve SVCE Generation Rate Changes
Amrit Singh
Board of Directors
February 09, 2022
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CLEAN
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1 ENERGY
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Item 4
PRESENTATION
Action Requested
Implement rate changes to
maintain 1% discount rate
Seek recommendation on any
additional expenditure
Presentation Outline
Favorable market movement driving
improved net margin
Reversal of price trend presents
significant risk
Allocation of any additional
expenditure between
decarbonization programs and
customer discount
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Item 4
PRESENTATION
Key Messages
Market prices for power have moved in the direction that is favorable for us resulting in higher net margin.
Market prices can just as easily move in direction that can affect us adversely in the future.
Staff recommends we take the expected favorable outcome to:
1. Build reserves to withstand future adverse market price movements
2. Further serve our mission by setting aside an additional $20 million towards our decarbonization programs
3. Keep customer discount at 1% to PG&E generation rates Both the Executive Committee (EC) and the Finance and Administration Committee (F&A) agreed with staff to build reserves and limit additional expenditure to $20 million.
On how to allocate the $20 million between programs and additional customer discount, the EC decided to have that discussion at the Board meeting.
The F&A voted unanimously to recommend that the Board maintain a 1% customer discount and target to transfer $20 million to the programs fund at the March 2022 Mid-Year Budget Update. 3 New PG&E Gen and PCIA Rates Result in Higher
• Margin than FY 22 Budget Assumptions
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Item 4
PRESENTATION
Relative to assumptions
in the FY 22 Budget:
Current PG&E’s generation
rate is expected to
increase by about
21%
Budget
Projection *
PG&E Gen Rate:
14.59 <t/kWh
Assumptions
PG&E Gen Rate:
12.03 ct/kWh
SVCE
discount 1% SVCE
discount
PCIA is expected to
decrease by about
20%
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.C
0 ^. 5
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Relative to Budget, Higher Margin
SVCE’s margin improve
by about 32%
Q)
ro
01 c
cD 5 o o LU LU CPUC is expected to
approve actual rates on
February 10, 2022.
u
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*
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(A
* Source: NewGen Strategies estimate based on proposed decision. Final number will be available in late February.
4 FY 22 Budget ($ in thousands) Budget With Revised
Margins ** Variance
Revenues* 342,105 376,802 34,697
Power Supply Cost 273,561 282,835 9,274
Operating Margin 68,544 93,967 25,423
Other Costs 32,060 32,060 -
Net Contribution to Reserves 36,484 61,907 25,423
* Potential customer write-offs included in other costs. ** Assumes 1% customer discount.
Item 4
PRESENTATION
Estimated Impact on Budget
Based on preliminary calculations. To be updated next month as part of Mid-Year Budget r
0 SILICON VALLEY
CLEAN ENERGY 5
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Item 4
PRESENTATION
High Prices Driving Favorable Outcome but Price
Reversal Presents Significant Risks
2022 forward prices are at
all time high.
Extreme case of runup in
prices
Past Forecast Cal 2022 Prices Future Path
580-00
}J0O
$67/Mwhr
Most of the increase
occurred in the last 12
months
5 2022 Forecast as 2022 Actuals Low
tX of Nov 2021 Case Scenarios Percentile
& $ 67
$ 34 5%
Z $ 33 1%
:
Can Li.
’t predict future but
price trends could reverse,
and prices could drop
equally or more.
Leads to substantial draw
from reserves
* $34/Mwhr SWJOO
SJOJOO
-13JO -13.0 -11.0 -10.0 -9.0 -8.0 -7.0 -6.0 -S.0 -4.0 -10 -3.0 -1.0 OJO 1J0 3.0 10 4X> 5J0 6J0 70 8.0 9J0 IQO 1L0 12.0 110 Months relative to Nov 2021
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Item 4
PRESENTATION
CD What if Prices Plunge?
Staff conducted a stress test analysis where prices drop to historical low levels in 2022 and 2023 (analysis summarized in the appendix).
The analysis shows that such an adverse market movement could draw between 55% to 65% of the reserve, leaving us with only 159 to 121 days of cash on hand (DCOH).
Staff recommends to limit expenditure to no more than $20 million based on the analysis that if the stress test scenario were to occur, we can target to keep the reserves above the board-approved minimum of 120 DCOH. 7 Item 4
PRESENTATION
Programs vs Additional Customer Discount
Table below shows some options in allocating the $20
million between additional funding for programs and
additional customer discount:
Customer Discount
% Relative to PG&E
Monthly Savings | Monthly Savings | Monthly Savings
to Average
Residential
Customer
Allocate to Programs
Double Down Strategy*
(Spend will occur over 3- Generation Rate
to-5-year period)
to Small to Medium
Commercial Commercial
Customer Customer
20 million 1% (existing discount) $0.75 $2.68 $31.00
16.5 million 2% (add’l 1%) $1.50 $5.36 $62.00
13 million 3% (add’l 2%) $2.25 $8.04 $93.00
* Inclusive of equity program allocation to focus on low-income customers.
SILICON VALLEY
CLEAN ENERGY 8
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Item 4
PRESENTATION
Board Action
A. Board Approval
Adopt Resolution 2022-06, authorizing SVCE to implement rate changes to maintain a 1% discount to PG&E generation rates taking effect when PG&E implements its next generation rate change, which expected to occur on March 1, 2022.
B. Board Recommendation
Transfer $_ million from the operating budget to the programs decarbonization fund for the March 2022 Mid-Year Budget Update.
9 Item 4
PRESENTATION
Thank you! / Questions?
10 Item 4
PRESENTATION
Timeline
Dec 2020 March 2020 Sept. 2021
Board approves changing
SVCE rates to maintain a 1%
Discount (from 4%) to PG&E
Gen Rates, effective Jan
2021.
Board approves to maintain
1% discount rate to PG&E
Gen Rate in response to
increase in PCIA and PG&E
Gen Rate.
Board approves FY 22 budget that anticipates significant decrease in PCIA and increase in PG&E Gen Rate and maintains 1 % discount rate. Board to reconsider discount rate in Dec when there’s more certainty on PG&E rates and PCIA.
Nov. 17, 2021 Nov. 29, 2021 Feb 2022 March 2022
New SVCE rates
go in effect.
Board adopts
Mid-Year Budget
Update.
Board authorizes rate
changes.
Special session of the Finance and
Administration Committee (FA) to
review the same information as that
shared with the EC. FA
unanimously recommends keeping
customer discount at 1% and target
to transfer $20 million to the
Programs Fund at the Mid-Year
budget update.
The Executive Committee (EC) reviewed
updated SVCE margin analysis based on
the Nov. 8 released PG&E Gen Rate and
PCIA projections. EC reaches consensus
to spend an additional $20 million from
the FY 22 budget.
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Item 4
PRESENTATION
0 Risk Factors to Consider
Higher margins result from extreme increase in power market prices (black-swan type event).
PG&E Gen Rate also increased because of under recovery in ERRA account Black-swan type events that affect us adversely in the future can draw substantial funds from the reserves and/or increase customer rates to uncompetitive levels.
PCIA is based on current estimated market price benchmark/forwards (MPB) from the CPUC.
If realized prices are lower than MPB, then PCIA will be under collected and the under collection will raise 2023 PCIA rates
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Item 4
PRESENTATION
CD Can we improve our forecast?
Any modeling improvement will not eliminate the biggest contributor to uncertainty: Market Price Movements
Biggest source of uncertainty is market price volatility Can models be improved to eliminate significant amount of actual to forecast variances?
To a large extent, no
Market price volatility remains (to the extent not perfectly hedged) PCIA and PG&E generation rate calculations come from a blackbox Do not know the PCIA and PG&E generation portfolio positions CaICCA model is based on public information
Changing our hedging strategy to account for improved
modeling of PCIA and PG&E Generation rate could reduce risk 13 •
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Item 4
PRESENTATION
CD Stress Test - Market Prices Plunge
Assumes market prices drop to historical lows (1 percentile).
Cal 2023
Forecast
Stress Test
1.**
Stress Test
($ in thousands) 2.***
Revenues*
Power Supply Cost
Operating Margin
Other Costs
Net Contribution to Reserves
394,111
251,249
96,629
219,867
96,629
251,249
(123,238)
33,663
(154,620)
33,663
142,862
33,663
109,199 (156,901) (188,283)
* Potential customer write-offs included in other costs. ** Hedges for Cal 2023 at current 70% level. Assumes1% customer discount. *** Assumes Cal 2023 is hedged 100% at today's prices. Assumes1% customer discount.
The stress test above was performed in November 2021 using the higher initial PG&E ERRA Update Rates.
Based on the delay in implementation of rate change from January to March 2022, some of the revenues from 2022 are shifted to Calendar Year 2023.
The relative values among the scenarios for the most part are still relevant. 14 •
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Stress Tests
Beg. 2023 Forecast of
Reserves (DCOH)
Draw on
Reserves from
Stress Case
(DCOH)
Remaining
(DCOH)
Available for Use*
(Maintaining Min. Reserve
Threshold of 120 DCOH)
Available for Use
in $ Millions
Expected Case FY 22
Forecast of Reserves
(DCOH)
Price Drop to 1 percentile (100%
Hedged Case) 348 227 121 1 1 310
Price Drop to 1 percentile (70%
Hedged Case) 348 189 159 39 32 272
* Target to maintain 120 DCOH under the stress case scenario while ensuring that on an expected basis DCOH does not drop below the target threshold of 230 in FY22 .
Item 4
PRESENTATION
(
'
$) Reserve Analyses - Days Cash on Hand (DCOH)
(Based on November PG&E ERRA rates)
Recommendation: Maximum additional spend should be within the range of $1 to $32 million based on the above stress test analyses.
Other Considerations:
In the year the stress case event occurs, SVCE can also mitigate the financial impact with higher customer rates. Other CCAs have had rates higher than PG&E.
On an expected basis, PCIA should trend down as PG&E continues to recover stranded costs. 15 •
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Item 4
PRESENTATION
CD Options for use of Improved Margins
1. Hold in reserves for future black swan events
Forecast days cash on hand (DCOH) at the end of December 2021: 185 ($154 Million) The black swan event/stress test modeled would use 189 -227 DCOH.
2. Add funds to programs double down strategy
Currently programs are funded at 2% of revenues. Each 1% adds ^ $3.8 million.
3. Increase customer discount
Every 1% increase in customer discount diverts $5.7 million from reserves annually and ~$3.5 million for the remaining months of the current fiscal year (Mar to Sep).
4. Combination of above
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2022 Energy Price Change
(Forecast, Now – Forecast at budget)
+ -
2021 Energy Price
Change
(Actual – Forecast)
+
-
Item 4
PRESENTATION
CD Challenges in Forecasting Headroom
Energy price in the current and prior year have the
largest impact on headroom (cash reserves).
Based on historic price analysis Scenarios 1 and 4
are more common than Scenarios 2 and 3.
Additional Headroom Drivers
1. 2021Gen Rate (ERRA balance)
2. 2021 PCIA (PABA balance)
3. 2022 Net Revenue Increase Scenario 1
Large increase to cash
reserves
Scenario 2
Muted impact on cash
Key: reserves
+ + +
+ + +
+ 2021Gen Rate Increase (ERRA Under collection)
2021 PCIA Decrease (PABA Over collection)
2022 Net Revenue Increase
Scenario 4
Large decrease of cash
reserves
Scenario 3
Muted impact on cash
reserves
- 2021Gen Rate Decrease (ERRA Over collection)
- 2021 PCIA Increase (PABA Under collection)
- 2022 Net Revenue Decrease
17 Item 4
PRESENTATION
2023 Forward Price Stress Scenarios
2023 Forecast as of Nov 2021 2023 Low case scenarios Percentile $ sox
$ 44 5%
s 34 1%
SILICON VALLEY
CLEAN ENERGY 18
Item 4
PRESENTATION
February 9, 2022
2017 Vintage
Calendar Year
2021 Rates
PG&E AET1
12/30/20
2022 Rates
BUDGET
7/16/212
2022 Rates
PG&E Update
1/24/223
PG&E Gen Rate ($/kWh) 0.1096 0.1203 0.1459
PCIA (cents/kWh) 0.0459 0.0243 0.0193
Headroom (cents/kWh) 0.0638 0.096 0.1266
Assumptions
On-Peak Energy Price ($/MWh) 43.16 56.75 72.96
Off-Peak Energy Price ($/MWh) 35.50 42.54 58.34
System Capacity Price ($/KW-mon) 6.10 7.25 6.03
Local Capacity Price ($/KW-mon) 6.15 7.25 6.35
Flex Capacity Price ($/KW-mon) 5.69 7.25 6.41
Item 4
PRESENTATION
CD 2022 Forecast Compared to Budget
1 AET is the Annual Electric True-up that finalizes the rates based on changes across all proceedings. 2 Based on NewGen Model run with SVCE assumptions
3 Estimate based on proposed decision; number will be finalized in late February. 20 •
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2021 2022
0.1096 0.1459
Item 4
PRESENTATION
PG&E Generation Rate
The PG&E Generation Rate (Gen Rate) increased 33% between 2021 and 2022.
The large increase is mainly due to extremely high energy prices driven by high gas prices.
Gen Rate ($/kWh)
On-Peak Price ($/MWh)
'
43.6 72.96
Off-Peak Price ($/MWh)
'
35.5 58.34
Gas Prices at PG&E City
Gate ($/MMBtu)
2 [Winter Futures!
3.80 7.00
SILICON VALLEY
CLEAN ENERGY 1 Market Price Benchmark issued by CPUC
2 Data from Intercontinental Exchange 21
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2021
Forecast
2022
Forecast
Item 4
PRESENTATION
PG&E Generation Rate (continued)
The other driver of the high Gen Rate is due to the difference between the forecast energy price and the actual energy price.
The energy prices in 2021 were higher than the forecast resulting in bundled customers paying less than they should.
This “undercollection” is added to the 2022 prices thus compounding the increase in the 2022 Gen Rate.
On-Energy
Price
($/MWh)
43.6 72.96 Peak
Off-35.5 58.34 Peak SILICON VALLEY
CLEAN ENERGY 22
2019
Final
2020
Forecast
2020
Final
2021
Forecast
2021
Final
2022
Forecast
Item 4
PRESENTATION
Market Price Benchmarks 2019-22
On-Peak Energy Index
($/MWh) Off-Peak 29.93 35.5 58.34
System RA 2.77 4.59 5.20 6.10 7.33 6.03
Local RA 3.19 4.11 5.02 6.15 6.31 6.35
RA Adder
($/kW-month)
Flexible
RA 2.78 4.41 4.65 5.69 5.39 6.41
RPS Adder ($/MWh) 16.44 17.35 15.10 14.49 14.23 13.7
SILICON VALLEY
CLEAN ENERGY 23
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Item 4
PRESENTATION
Timeline
Week of October 18: Assumptions Review, Revise Analysis November 1: CPUC issues MPBs
November 8: PG&E Issues Updated PCIA and Gen Rate for 2022 November 15: PG&E Issues Preliminary AET
By mid to late November: NewGen and MRW 2022 Updated Forecasts Late January: Proposed Decision Issued
February: Final Decision, Final Annual Electric True-up (AET) filed The 2022 PCIA and Gen Rate will become final once PG&E Files the AET March 1, 2022: New Rates Implemented
0 SILICON VALLEY
CLEAN ENERGY 24
Item 5
PRESENTATION
REVISED
California Community Power
Long Duration Energy Storage
Tumbleweed Project
SVCE Board
February 9, 2022
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Item 5
PRESENTATION
REVISED
CD Summary
Background:
On October 8, 2021, CC Power Board approved notice of intent to negotiate an Energy Storage Service Agreement (ESSA) with LS Power for Tumbleweed Energy Storage Project (“Tumbleweed”)
On November 17, 2021SVCE Board directed CEO to vote in favor of Tumbleweed
On January 19, 2022, CC Power Board approved the Tumbleweed agreements
Request:
Delegate authority to CEO to execute necessary Tumbleweed Agreements with CC Power, Tumbleweed LLC and Other Participating CCAs
2 Interest & Information Gathering (RFI)
CCAs Issue a Joint- Request for Offers
(RFO)
California Community Power (CC Power) Formed/Long Duration Storage Project Oversight Committee formalized
LDS Projects Shortlisted, ESSA Negotiations start and begin to development of CC Power/CCA Agreements
CPUC Issues Mid-term Reliability Procurement Order
Item 5
PRESENTATION
REVISED
Long Duration Storage Procurement Timeline
CCAs set out to jointly procure cost-effective long duration storage (LDS) & support grid reliability \/
Jun
‘21
3 • Proposals received mid
-December 2020
• 51 Entities submitted offers (over 9,000 MW) • Total of 221 unique pricing offers • 160 Full Toll Offers • 57 RA Only Offers • 8 Technology types • 18 distinct technologies • 8,10,12-hour, and multi-day discharge durations • In-depth evaluation process led by a Project Oversight Committee
• CC Power Shortlisted & Negotiating three projects – Two Lithium-ion – One Emerging Technology Item 5
PRESENTATION
REVISED
Joint RFO
Technology
Battery
aqueous
-air
flow
lithium
-ion
zinc
Chemical Flow
iron redox flow
vanadium flow
Compressed Air
Fuel Cell
- Hydrogen
Hybrid
hydrogen
, combined
-cycle gas gen
li
-ion
, combined
-cycle gas gen
Mechanical
-Gravity
Pumped Hydro
Thermal
ice
(HVAC)
liquid air
molten Salt
molten Salt
& Gas gen
volcanic stone
water heat exchange
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Item 5
PRESENTATION
REVISED
(
<
£) CPUC’s Mid-Term Reliability Order:
Need Determination
CPUC conducted
resource stack analysis
found "11.5GW of need
60,000
11.5 GW
50,000 need
Due to nature of retiring
assets (DCPP), CPUC
required subset to be
met with firm clean
resources and 5-hr
batteries (4.5 GW)
D.21-06-035 adopted by
CPUC on June 24, 2021
to address mid-term
reliability needs
^
40,000
5 8.
2 30,000
8 Existing
resources <
O20,000
10,000
2022
Surplus
Specified Imports
Hybrids
Biomass
lin2 Managed Peak
2023
--"
Shortfall
Demand R
Solar
m Geothermal
“ — RA Requirement
2024 2025 2026
SVCE given load share
proportion: 237 MW
sric for D.l
ped Hydro
Unspecified Imports
Energy Storage
Hydro
Thermal
Gene 9-11-016
Wind
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Item 5
PRESENTATION
REVISED
Qft CPUC’s Mid-Term Reliability Order:
Allocation & Technology Carve-outs
Procurement
Cumulative Additions (NQC)
12,000
11.5 GW required to come online over
the 2023- 2026 timeframe 10,000
o3 8,000
Capacity is shown as Net Qualifying
Capacity (“NQC”), actual nameplate
will be higher but is dependent on
exact resource types procured.
3?
2 6,000
£
Q)
4,000
1/1
Long-duration storage and firm clean
resources are considered “long-lead
time” and are all expected in 2026.
LSEs may request extension to 2028.
Axis Title
Non-Specific RA Capapacity Zero-Emitting Peak Resources* Long-Duration Storage Firm Resources (e.g. Geothermal)BSVCE Share
*Zero-emitting resources must be online by 2025, however for illustrative purposes we assume 1/3 will come online in 2024 as they can be used to meet an LSEs 2024 obligations. They are expected to be largely comprised of 5-hr batteries, which meet the definition of being zero-emitting and available for delivery 4-9pm daily.
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Item 5
PRESENTATION
REVISED
Tumbleweed Project
Tumbleweed is the first LDS project out of the Joint RFO issued in October 2020 Seller - Tumbleweed Energy Storage, LLC
Developer - LS Power/Rev Renewables
Technology -Lithium-ion, 8 hours discharge duration
Project size - 69 MW/552 MWh
Product -Tolling Agreement w/full capacity rights
Location - Rosamond, Kern County
Expected COD - June 2026
Price - fixed $/kw-mo, no escalation
Term -15 years
7 Tumbleweed Benefits
• Provides Energy Arbitrage Value – tolling arrangement • Charge during solar producing hours and discharge during non-solar hours • Enhances grid reliability
• Ancillary Services
• Resource Adequacy
• Reduces GHG emissions – charge low emitting hours and discharge in high emitting hours
• Meets Mid-term Reliability Procurement Order requirements • Participating CCA’s Obligation 96 MW Net Qualifying Capacity (NQC) • SVCE’s expected share – 14.6 MW NQC
Long Duration Storage is needed to integrate renewable/intermittent resources Item 5
PRESENTATION
REVISED
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Item 5
PRESENTATION
REVISED
Mid-term Reliability Procurement Order:
Long Duration Storage
Tumbleweed meets ~55% of Participating CCAs’ LDS
Obligation per MTR Order (adjusted for ELCC)
1,000 MW of LDS by
June 2026
8-hour minimum
discharge
Grid-charged
Resource Adequacy
eligible
Minimum 10-year term
NQC Adjusted for
Effective Load Carrying
Capacity (ELCC) ~78%
Nameplate MW
(2026 ELCC)
CCA NQC MW
CleanPowerSF
Peninsula Clean Energy
Redwood Coast Energy
San Jose Clean Energy
Silicon Valley Clean Energy
Sonoma Clean Power
15.5 19.8
19.0 24.3
3.5 4.5
21.5 27.5
20.5 26.2
12.5 16.0
Valley Clean Energy
Total
4.0 5.1
96.5 123.4
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Item 5
PRESENTATION
REVISED
Energy Storage Service Agreement
LS Power and CC Power
15 year-term at COD
Development and Performance Deposits
Buyer’s Liability Pass Through Agreement (BLPTA) - guaranty performance by each Participating Member to CC Power & Tumbleweed (Exhibit L) Step-up provision - capped at 125% of Entitlement Share per Participating Member
Meets CC Power Board specified labor environmental, and environmental justice preferences
Executed on 2/24/22
90 days from execution for Participating Members to approve agreements 10 •
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Item 5
PRESENTATION
REVISED
CD Project Participation Share Agreement
CC Power and Participating CCAs
Agreement to fund Project obligations -deposits & payments Sharing of Project revenue and benefits
Step-up provision - capped at 125% of Entitlement Share per Participating Member
Liability and insurance provisions
Establishes need for a Coordinated Operating Agreement
Retain a Scheduling Coordinator
Establish scheduling strategy
Governance & Voting structure for operating PPSA:
Each Participating Member gets one vote
Non-participating members abstain
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Item 5
PRESENTATION
REVISED
CD Coordinated Operating Agreement
CC Power and Participating CCAs
Develop project operating
Sharing of Project revenue and benefits
Step-up provision - capped at 125% of Entitlement Share per Participating Member
Liability and insurance
Establishes need for an Operating Agreement
Retain a Scheduling Coordinator
Establish scheduling strategy
Governance & Voting structure for operating PPSA:
Each Participating Member gets one vote
Non-participating members abstain
12 Item 5
PRESENTATION
REVISED
0 Tumbleweed Participating CCAs
Each Participating CCA will
seek authority to cover
entitlement share plus
contingencies:
1) One large CCA drops-out before execution;
and
2) 25% step-up
% Entitlement Share in
ESSA/PPSA Member Entitlement Share MW
CPSF 16.06%
19.69%
3.62%
22.28%
21.25%
12.95%
4.15%
11.08 PCE 13.59
RCEA
SJCE
SVCE
SCPA
2.50 15.37
14.66 8.94
VCE 2.86
Total 100.00% 69
SVCE’s max authority to cover contingencies 22.41 MW
CleanPowerSF (J)
PENINSULA
Y CLEAN ENERGY
jfPtl REDWOOD COAST
EnergyAuthority
SANJOSEPH
CLEAN ENERGY
SILICON VALLEY
CLEAN ENERGY
A Program of the City of San Jose
Sonoma
Clean Power VALLEY
CLEAN ENERGY 13
Item 5
PRESENTATION
REVISED
CD Approval Process
Step 1: CC Power Board issues 60-day notice to consider ESSA for approval-October 8, 2021 Step 2: CC Power Board approves Tumbleweed Agreements - January 19, 2022 Step 3: General Manager & Tumbleweed execute agreements -January 24, 2022 Step 4: Participating Members seek respective Board Approvals of PPSA and BLPTA within 90 Days -April 24, 2022 October November January 19th January 2022 -March 2022
CC Power Board
issues 60-day
notice to consider
ESSA for approval
in December
Finalize
Tumbleweed ESSA
and CC Power/CCA
Supporting
Agreements
CC Power &
Tumbleweed
Execute
Agreements
Participating CCAs
Approve
Participation
Agreements
CC Power
Approves LS Power
Tumbleweed
Step 1
Request
Delegate authority to the CEO to execute on behalf of SVCE the necessary Tumbleweed Long Duration Energy Storage Agreements for a delivery term of 15 years starting on or about June 1, 2026, for a quantity not to exceed 22.41 MW and amount not to exceed $100 million Agreements:
1. Project Participation Share Agreement (PPSA) between Silicon Valley Clean Energy Authority, California Community Power and participating community choice aggregators (CCAs)
2. Energy Storage Service Agreement (ESSA) - Buyer Liability Pass Through Agreement (BLPTA) between Silicon Valley Clean Energy Authority, California Community Power and Tumbleweed Energy Storage
3. Coordinated Operations Agreement (COA) between Silicon Valley Clean Energy Authority, California Community Power and participating CCAs for Tumbleweed.
Item 5
PRESENTATION
REVISED
15 Project Oversight Committee
Role: solicit, evaluate, direct negotiations and recommend projects Item 5
PRESENTATION
REVISED
CCA POC Member Other Staff ESSA Negotiation Team:
Carrie Bentley, Gridwell Consulting
Kevin Fox, Keyes & Fox
PPSA & Other Legal Support:
BBSW -Tony Braun, Justin Wynne,
Brittany lies, Kris Kirkegaard
General Manager:
Timothy Haines
CleanPowerSF Michael Hyams Erin Mulberg
Peninsula Clean Energy Siobhan Doherty
Redwood Coast Energy Richard Engel Jocelyn Gwynn
San Jose Clean Energy Jeanne Sole Phil Cornish
Silicon Valley Clean Energy Monica Padilla Oren Weiner and Maren Wenzel Sonoma Clean Power Deb Emerson Ryan Tracey and Hannah Rennie Valley Clean Energy Gordon Samuel
A PENINSULA
W CLEAN ENERGY
SANJOSE
CLEAN ENERGY
CleanPowerSF
jfPtl REDWOOD COAST l|jjgP EnergyAuthority
SILICON VALLEY
CLEAN ENERGY
A Program of the City of San Jose
Sonoma
^
Clean Power VALLEY 16 CLEAN ENERGY
Item 5
PRESENTATION
REVISED
THANK YOU!
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Item 6
PRESENTATION
REVISED
Clean Power Update
SVCE Board Meeting
February 9, 2022
Monica Padilla,Director of Power Resources
•••
Item 6
PRESENTATION
REVISED
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Item 6
PRESENTATION
REVISED
Clean Procurement Efforts
CPUC Mid-term Reliability Procurement Order -11.5 GW of new capacity SVCE’s Obligation is 237 MW -based on nameplate capacity Long Duration Storage (2026) -20.5 MW -
Procuring through CC Power
Feb 9, 2022 -SVCE Board to consider Tumbleweed
Two additional resources under negotiations
Firm Clean Resources new geothermal and/or biomass (2026) -20.5 MW Procuring through CC Power RFO
Ormat’s geothermal will be a portion of obligation
Other requirements (2023-2025) - stand-alone storage, zero emitting resources (solar + storage) -196 MW Joint RFO with Sonoma Clean Power and Central Coast Community Energy Some of SVCE’s executed PPAs will count towards MTR Order 3 •
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Item 6
PRESENTATION
REVISED
Signed Power Purchase Agreements
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$1.6 B in commitments
62% RPS in 2024
13 PPAs singed
10 new build projects
"725 MW in total
173 MW lithium-ion storage
paired with 516 MW of Solar
CASADiAfitO
Mono County,CA
CwwKion 7 MW
Dtfvtiopcr.OnnM
Onfcne 7022
COSO
InyoCowrtty.CA
Ofwrjtton:447MW
PeuMoper COSOGeothermal
Online 7077
GEOTHERMAL
SOLAR POWER + STORAGE
SOLAR POWER SACRAMENTO
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X
V WIND GENERATION X
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FRANCISCO ^
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N-X
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x NEVADA X
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SAN JOSE
tRATINA
w
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ERESNO
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x PV X
IAS «FEl . 2 Projects now delivering to
SVCE
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BAKfRSFIElO X
CAMERON CREST KINGMAN
12 Projects to be operated with
Central Coast Community
Energy
KeenCounty,CA
Generation;77.7 MW
Developer Ten*
-Gen
Online:7073
X
ATLAS
LaPal County.A2
Generation;50MW
Ocretoper 174 Power Global
Online JOM
SANTA
RENEWABLE ENERGY
PROJECTS
X
VICTORY PASS
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A A LOS ANGELES
y. 25 MW tx: VP i
AESMOUNTAIN VIEW
Rrverude County.CA
Generation 33 MW
Developer;AES North
American Development
l
SILICON VALLEY
CLEAN ENERGY
ARIZONA
4 i
Online; 7023 %%
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Item 6
PRESENTATION
REVISED
PPA Progress
Some good news...
Coso Geothermal (38 MW) started delivering energy on January 1, 2022 - existing facility, no issues
Baseload resource A
'10% of load
Slate Solar (93 MW) + Storage (46.5 MW/186 MWh) - now operating in the CAISO market! COD delayed from original contract start date
Started receiving PCC1 renewable energy certificates in xxx under a testing period Scheduling Coordinator is pleased with battery performance Developing bidding/operational strategies consistent with SVCE objectives, project constraints and CAISO rules
Mountain View Wind (33.5 MW) - may come on-line earlier than expected 5 •
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Item 6
PRESENTATION
REVISED
0 PPA Updates
Projects are coming on-line but face many challenges
Interconnection delays due to labor issues, complicated requirements and too many projects in the queue
Global manufacturing and supply chain issues -BESS systems stuck in other countries or in ports Local jurisdictional permitting delays
Governor’s Office of Business Development (GO-Biz) has made it a priority to bring projects on-line ASAP
Tracking Energy Development (TED) Task Force - the CPUC, CEC, CAISO and Go-Biz SVCE is directing its project developers to communicate and work with the Task Force.
CPUC now requiring monthly updates on project development progress and known delays 6 •
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500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
2022 2023 2024 2025 2026 2027 2028 2029 2030 MWh per Year Calendar Year
SVCE Renewable Portfolio Standard - 2022 to 2030
Short-term PCC1 Geothermal Wind Solar plus Storage Solar Only SB 100
SVCE RPS Policy
Load Forecast
Item 6
PRESENTATION
REVISED
Renewable Portfolio Standard
SVCE RPS Policy has exceeded SB100 RPS requirements since 2017. 2022 State RPS is 38.5%.
SVCE’s RPS is 54%
2022 new long-term resources
(PPAs) start on-line in 2022
Fh;0
SVCE’s RPS via PPAs in 2024
>60% and 57% in 2030
2030 RPS Requirement 60%
Long-term requirement is 65%
of overall RPS per compliance
period
Executed short-term
transaction for CY 22 7
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Item 6
PRESENTATION
REVISED
Cy Long-term RPS Procurement
SB350 Requires 65% of RPS Resources be under long-term contracts per Compliance Period SVCE’s long-term PPAs
exceed minimum
requirements
70.0%
60.6%
60.0%
57.7%
Compliance Period 4 (2021-
24) currently expect 34.8%
and minimum is 25.9%
50.0%
37.00% 42.00%
37.3%
40.0%
34.8%
30.0% 31.0 32.1% £
SVCE’s IRP set a minimum
buffer of 5% per compliance
period to cover delays and
performance with PPAs
25.9%
20.0%
10.0%
0.0%
CP4 CP5 CP6
IContracted to Date Min LT Requirement IRP Target 8
Item 6
PRESENTATION
REVISED
PPA Expected Commercial On-line Dates
Slate, Coso, Casa Diablo Geothermal & Big Beau 2022 - Q1 Mountain View Wind & Rabbitbrush Solar + Storage 2022 - Q3 Yellow Pine Solar + Storage & Atlas Solar 2022 - Q4
Cameron Crest Wind 2023 - Q1
Angela & Aratina Solar + Storage 2023 - Q2, Q3
Victory Pass & San Luis West Solar + Storage 2023 - Q3, Q4 9 Item 6
PRESENTATION
REVISED
CD Projects Delivering to SVCE
£
Coso Geothermal (38 MW)
Slate Solar (93 MW) + Storage (46.5 MW)
COD January 2022
10 https://youtu.be/lMUOxx3hKRg
Item 6
PRESENTATION
REVISED
CD Project Construction
11 Item 6
PRESENTATION
REVISED
THANK YOU!
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