• Subtitle
New SV Clean Energy
PowerPoint Template
Item 3
PRESENTATION
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Item 3
PRESENTATION
Board approved $17M
last month
Extra funds for programs
on top of N$6M annually
allocated normally (2% of
revenue)
rA, s1L1coN VALLEY ~ CLEAN ENERGY
Asking for Board approval on initial program
allocation and details
Building on programs previously approved
by the Board and November discussion
Asking EC for input
2 Item 3
PRESENTATION
Timeline
Input on
direction from
stakeholders,
EC
Input from
Board on
direction
rA, s1L1coN VALLEY ~ CLEAN ENERGY
Board approval
of SVCE rates
and $20M for
programs
Today
Share initial
program details,
get approval on
allocations
Staff complete
program design,
launch programs,
give Board
updates on status
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Item 3
PRESENTATION
Double down programs expand on those already approved by Board Multifamily EV Charging Assistance
and Grants/Incentives
Whole-Building Electrification
Gra nts/1 ncentives
Reach Codes 2.0 and pilot policy
Permitting Simplification
Accessible Financing
4 Item 3
PRESENTATION
SVCE's programs provide the foundation to enable large-scale policy ~
l{o Q oJI Cost-Effectiveness
6 Awareness
@ Product
Availability
EB Easy Permitting
& Trained
Workforce
~ Demonstrations
c::::::,
- -
INDUCTION HEAT PUMP
COOKING HEATING AND
COOLING
SOLAR+ BATTERY
INTELLIGENT
CONTROL
STORAGE ELECTRIC
DRYER
HEAT PUMP
WATER HEATER
EV
CHARGING
•-- 5
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Item 3
PRESENTATION
Allocations out of the additional $17M and planned additional elements Program
Multifamily EV charging
assistance and funding
Whole-building electrification
emphasis and funding
Local policy support
Permitting simplification
Accessible financing
TOTAL
New Elements
Add incentives to existing technical assistance
Direct installation for toughest sites
Menu of incentives, pushing towards total electrification Direct installation for large, affordable multifamily
Continued work on Reach Codes 2.0
Support for cities to identify and pursue policies (e.g. retrofit-on-burnout, EV charging mandate, end-of-flow)
Funding and technical resources for cities to simplify their processes (and compliance support for EVI)
Pursue Tariffed On-Bill financing
Test out alternate financing approach(es)
Allocation
+$2M
+$4M
+$3M
+$3M
+$5M
+$17M
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Item 3
PRESENTATION
Objectives
Increase EV charging for multifamily
Give extra support to affordable
properties
Test managed L1 and L2 solutions
Increased Impact
+40 properties with N20 L 1 or N8 L2
chargers
Timeline
Program Element
Add incentives to technical +$1M
assistance program
Direct installation program
for toughest sites,
affordable housing
+$1M
How it will support future policy:
Allocation
Gather information on varied EVI approaches/costs and link to EV adoption Support workforce development to enable future mandates 7 •
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Item 3
PRESENTATION
Objectives
Continue support for residents to
electrify individual appliances
Push towards whole-building
electrification or pre-wiring
Give extra support to multifamily and
affordable housing sites
Increased Impact
+150 single-family homes, 400 multifamily
units, and 10 commercial sites electrified
Timeline
Program Element
Incentives menu, pushing
towards full electrification
Direct installation program
for larger, affordable
multifamily
Allocation
+$1 M for res.
+$1M for com.
+$2M for multifamily
How it will support future policy:
Gather information on approaches/costs and demonstrate viability Help develop the local product market and contractors, and learn about necessary program models to support a mandate or purchase ban 8 •
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Item 3
©
PRESENTATION
Reach Codes 2.0 and pilot policy (+$3M)
Objectives
Enable cities to test policies for existing
building electrification and EV charging
Support cities in exploring options and
trying approaches
Increased Impact
+many cities consider and a handful
adopt policy targeting existing buildings
Timeline
Program Element
Reach Codes 2.0 incentives +$1.5M
for EVI at affordable
housing new construction
Support for cities to explore +$1.5M
and pursue policy for
existing buildings
How it will support future policy:
Allocation
Test promising policy approaches to electrification of existing buildings Help interested cities take action through technical and programmatic support as needed 9
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Item 3
PRESENTATION
Objectives
Reduce friction for electrification
Promote regional consistency
Provide tailored support to each city
Enable cities to meet legislative
requirements
Increased Impact
+all jurisdictions have simplified
processes
Timeline
Program Element
General streamlining +$2.5M
EVI streamlining for AB 970 +$500k
compliance
How it will support future policy:
Make electrification more cost effective
Allocation
Remove perceived implementation barriers to widespread policy 10 •
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Item 3
PRESENTATION
Objectives
Unlock electrification for customers
without easy access to sufficient capital
Support renters' ability to participate in
programs
Enable scaling of electrification
Increased Impact
+600 single- and multifamily households
electrified
Timeline
Program Element
Pursue tariffed on-bill (TOB) +$4M
financing
Pilot alternate financing +$1M
option(s)
How it will support future policy:
Allocation
Key enabler for various policy levers (retrofit ordinances, appliance bans, etc.) because it avoids the need for major up-front capital investment Trial to track participation of lower-income customers and renters 11 Item 3
PRESENTATION
Staff will
systematically
incorporate equity
considerations into
program design,
deployment, and
evaluation
Design programs to meet needs of customers
in all SEVI quartiles
Incorporate program-specific equity indicators
in ongoing tracking and evaluation
Integrate community feedback (e.g. CBOs and
underserved populations) throughout lifecycle
12 Item 3
PRESENTATION
SocioEconom ic
Vulnerability Index
(SEVI)
SEVI Quartiles
D 1st Q\Jartile (Best otr}
I 2nd Quartile
I- 3rd Quartile
- 41h Quartlte (Worst off)
The worst-off quartile of SEVI (dark
blue) contains:
- ·18% of residential accounts
- 45% of CARE and FERA aC{:-OLmts
The best-off quartile of SEVI (light
grey) cont ains:
- 21% of residential accounts
- 8% of CARE and FERA account s
13 Item 3
PRESENTATION
SEVI groups have
different needs ' barriers, and
existing conditions
Best-off Quartile: Housing Composition
%SFH
Electrifi cation:
8%
■ MFH ■ Condo /Tcmnoome SFH
Worst-off Quartile: Housing Composition
%SFH
Electrifi ca tion:
3%
• MFH ■ Condo /Tawnhome SFH
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Item 3
PRESENTATION
Allocations out of the additional $17M and planned program changes Program
Multifamily EV charging
assistance and funding
Whole-building electrification
emphasis and funding
Local policy support
Permitting simplification
Accessible financing
TOTAL
New Elements
Add incentives to existing technical assistance
Direct installation for toughest sites
Menu of incentives, pushing towards total electrification Direct installation for large, affordable multifamily
Continued work on Reach Codes 2.0
Support for cities to identify and pursue policies (e.g. retrofit-on-burnout, EV charging mandate, end-of-flow)
Funding and technical resources for cities to simplify their processes (and compliance support for EVI)
Pursue Tariffed On-Bill financing
Test out alternate financing approach(es)
Allocation
+$2M
+$4M
+$3M
+$3M
+$5M
+$17M
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Item 3
PRESENTATION
Asking for approval of
program funding
breakdown and
programmatic elements
described
rA, s1L1coN VALLEY ~ CLEAN ENERGY
Staff will then commence with final design of
programs and launch
Equity Framework will be applied
Staff will provide periodic updates on
program statuses and final design decisions
Asking EC for input
16 Item 3
PRESENTATION
Item 3
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Item 3
PRESENTATION
$17M in "double down" funding is on top of ongoing 2% revenue allocation Table shows total combined funding across the three years staff estimate it will take to completely spend the double down funding
Program Area
Mobility
Built Environment
Innovation, Energy Efficiency and
Grid Integration, Education and
Outreach
General/ Unallocated/ Ad Hoc
TOTAL
"Typical" Allocation, Over
Three Years
$6M
$6M
$3M
$3M
N$18M
Additional Double Down
Allocation
+$3.5M
+$9M
+$1.5M
+$3M
+$17M 19
Item 3
PRESENTATION
© Double down program summary, at a glance
Program
Multifamily EV charging assistance
and grants/incentives
Whole-building electrification
g rants/incentives
Reach Codes 2.0 and pilot policy
Permitting simplification
Accessible financing
TOTAL
Current
Funding
$900k
$3M
$800k
$200k
$200k
$5.1M
Allocation
+$2M
+$4M
+$3M
+$3M
+$5M
+$17M
Est. Impact Increase Timeline
+40 properties with up to 20 L 1 or 8 L2 Q2 2022 - 2024 +150 homes electrified
(partially/completely) Q2 2022 - 2024 +10 commercial properties electrified +400 multifamily units electrified
+many cities consider and a handful
adopt policy targeting existing buildings Ongoing - 2024 +AH code compliance coverage for EV charging
+all jurisdictions have simplified Q2 2022 - 2024
processes
+600 single or multifamily households Q2 2022 - 2024 electrified 20 •
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Item 3
PRESENTATION
Objectives
Increase EV charging for multifamily
Give extra support to affordable
properties
Test managed L1 and L2 solutions
Increased Impact
+40 properties with N20 L 1 or N8 L2
chargers
Timeline
Program
Element
Incentives
Direct
installation
program
Allocation
+$1M
+$1M
Details
Add incentives to TA program
Enable futureproofing
Support tailored deployments to meet site
needs, track and compare effectiveness
Prioritize sites with no EV charging and
affordable
Provide tailored installation services
Higher cost coverage for affordable
housing
How it will support future policy:
Gather information on varied EVI approaches/costs and link to EV adoption Support workforce development to enable future mandates 21 •
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Item 3
PRESENTATION
Objectives
Continue support for residents to
electrify individual appliances
Push towards whole-building
electrification or pre-wiring
Give extra support to multifamily and
affordable housing sites
Increased Impact
+150 single-family homes, 400 multifamily
units, and 10 commercial sites electrified
Timeline
Program
Element
Incentives
menu
Direct
installation
program
Allocation
+$1M for res.
+$1M for com.
+$2M for
multifamily
Details
Provide a menu of incentives that includes
adders for pre-wiring and going all-electric; leverage outside incentives where available
Offer concierge support
Allow single-family, smaller multifamily,
and eventually commercial to participate
Target larger affordable multifamily
Provide wraparound services to facilitate
installation at no cost - leverage outside
incentives where available
Bundle with other values (community
engagement, jobs development)
How it will support future policy:
Gather information on approaches/costs and demonstrate viability Help develop the local product market and contractors, and learn about 22 necessary program models to support a mandate or purchase ban •
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Item 3
PRESENTATION
Objectives
Enable cities to test policies for existing
building electrification and EV charging
Support cities in exploring options and
trying approaches
Increased Impact
+many cities consider and a handful
adopt policy targeting existing buildings
Timeline
Program
Element
Reach Codes
2.0 Pilot policy
Allocation
+$1.SM
+$1.SM
Details
Continue as planned and previously
funded, add city grants
Offer incentives to 100% affordable
housing for EV charging reach code
compliance
Coordinate working group to identify best
practices in our region
Policy development support via third party,
funded by SVCE
Large "leadership award" to the first two
jurisdictions who adopt a policy
SVCE may offer a targeted incentive
program to support and enable such
policy (if necessary)
How it will support future policy:
Test promising policy approaches to electrification of existing buildings Help interested cities take action through technical and programmatic 23 support as needed
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PRESENTATION
Permitting simplification (+$3M} - detailed
Objectives
Reduce friction for electrification
Promote regional consistency
Provide tailored support to each city
Enable cities to meet legislative
requirements
Increased Impact
+all jurisdictions have simplified
processes
Timeline
Program
Element
General
streamlining
EVI
streamlining
Allocation
+$2.SM
+$500k
Details
Identify key permitting elements that need
to be in place for large-scale electrification
Provide funding to cities to spend staff
time considering adjustments
Offer technical support from a third party
May be grants available to cities for
making changes to achieve certain
outcomes (e.g. turnaround time, fees)
Provide support to get compliant with
AB970 ahead of 2023
How it will support future policy:
Make electrification more cost effective
Remove perceived implementation barriers to widespread policy 24 •
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PRESENTATION
Accessible financing (+$SM) - detailed
Objectives
Unlock electrification for customers
without easy access to sufficient capital
Support renters' ability to participate in
programs
Enable scaling of electrification
Increased Impact
+600 single- and multifamily households
electrified
Timeline
Program
Element
Allocation
Pursue tariffed +$4M
on-bill (TOB)
financing
Pilot alternate +$1M
financing
options
Details
Apply to CPUC-funded pilot and pursue
TOB deployment in 2023
Combine with other program incentives to
lower upfront costs for participants
TOB connects repayment to the utility
meter and is paid based on energy bill
savings
Issue an RFI in mid-2022 to learn more
about options
Run an Innovation Onramp cycle focused
on financing options to select a handful of
approaches to test out on a smaller scale
How it will support future policy:
Key enabler for various policy levers (retrofit ordinances, appliance bans, etc.) because it avoids the need for major up-front capital investment Trial to track participation of lower-income customers and renters 25 Item 3
PRESENTATION
Staff developed
Equity Framework
to guide program
development and
deployment
Fundamental
component:
develop strong ties
with local CBOs
re-design
munity ne
ntify relev
uity indica
or progra
Identify key
metrics and plan
for tracking
nsure
plement
ng and pl
leverage
ap custom
journey
portunitie
just desi
based on
26 Item 3
PRESENTATION
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Item 3
PRESENTATION
Board provided significant
input on program details
for staff to consider
rA, s1L1coN VALLEY ~ CLEAN ENERGY
Some input has already been incorporated
into initial program details
As final design work is completed for double
down programs, staff will continue to review
the Board input and consider specific design
decisions accordingly
28 Comment Status Staff Comment
Make sure we reach the decisionmakers at these properties. Plan to Include This is a key element of our existing program that offers free technical assistance.
Think about different charging power levels. Plan to Include The existing program includes L1 and L2
technologies, and we intend to support
incentives for both.
Item 3
PRESENTATION
Multifamily EV Charging Assistance and Grants/Incentives 29 Comment Status Staff Comment
Should we do geographical targeting with incentives? Plan to Include Important to consider as we try to support pruning of the natural gas distribution system.
Should we focus on newer homes because they are less likely to be renovated? That would protect the SVCE investment in electrification for longer. Under Consideration
We will continue to discuss this. There are
some concerns around unintended
consequences for equitable access to the
incentives.
Item 3
PRESENTATION
Whole-Building Electrification Grants/Incentives
30 Comment Status Staff Comment
Prioritize new construction. Plan to Include -
Common ordinances across cities would be helpful. Also consistency in interpreting the code by officials. Plan to Include - Consider the Utility User Tax as a tool and a potential barrier to electrification costs. Under Consideration We will work with cities to consider this topic and determine where/if to address it.
Using the codes to support EV charging at multifamily properties is a good idea. Plan to Include -
Can we share results from other cities that have adopted reach codes? What are the impacts? Plan to Include
We are working on the evaluation of Reach
Codes 1.0 and will share information when we
have it. Further, our support will include
analysis of other codes where applicable.
Could we summarize where each city is and share that? SVCE can keep pushing things forward. Plan to Include -
Item 3
PRESENTATION
Reach Codes 2.0 and Pilot Policy
31 Comment Status Staff Comment
What is the staff impact on city officials when so many pieces of equipment need to be replaced? What is the endgame – eventually no permits required? Could we certify at the state level so that there isn’t a need for inspection?
Under Consideration
We will discuss necessary support and
preferred approaches with city staff through
the program. SVCE will consider what
resources and policies may help.
Common ordinances across cities would be helpful. Plan to Include - Could we summarize where each city is and share that? SVCE can keep pushing things forward. Plan to Include
Staff has worked with city officials to complete
an initial assessment of permitting across all
cities and will build on that work.
Could SVCE offer grants/support to cities to help with staffing constraints on this (e.g. an intern/fellow)? Plan to Include Intending to include additional funding and
other resources to help all cities pursue
permitting simplification, even with staffing
constraints.
Item 3
PRESENTATION
Permitting Simplification
32 Comment Status Staff Comment
Could this include financing of the EVs, not just EV charging? Under Consideration We are tracking what else is happening at the
state and regional levels to determine what
role SVCE can best play.
Item 3
PRESENTATION
Accessible Financing
33 Comment Status Staff Comment
Should we be focusing on the biggest bang for the buck and/or the fastest return? Under Consideration
We want these, and also some other key
elements: scalability, equity, and things that
are within SVCE control/influence. We will
continue to consider this balance.
Leveraging relationships with city staff is important across cities. Plan to Include - Some concern about de-prioritizing the fleet electrification grants. Under Consideration The currently planned SVCE program would be
small-scale and focused on helping various
fleet owners plan for electrification – including
help going after other incentives for the
vehicles and charging. We will delay for now,
rather than cancel.
As a part of education and awareness, could we offer a 211-like help line for those with appliance failures to promote electrification at that moment?
Under Consideration
The SVCE suite of online resources in the eHub
has a lot of relevant info for customers in
these situations, but there may be other ways
we can continue to help make it come alive
and be engaging.
Item 3
PRESENTATION
For staff consideration generally, or as specific program ideas Comment Status Staff Comment
Should SVCE focus on supporting Caltrain electrification? Put in Parking Lot, for Now
SVCE Board members may be best suited to
help push this initiative forward, rather than
staff via a program. There are other entities
involved in planning and funding that are
better suited.
Doing substantial PR and awareness-building of electric technologies is important. Plan to Include
SVCE will continue ongoing and planned
outreach via emails, online, and returning to
in-person events. Further, the incentive
programs will help promote awareness through
demonstration projects.
Make sure we leverage best practices from others who are working on these same challenges. Plan to Include -
Could SVCE help cities compare and align their CAPs? Or play some sort of coordinating role there?
Put in Parking Lot, for
Now
SVCE has been and will continue to support
cities through compiling and maintaining GHG
inventories on an annual basis. SVCE also
provides a forum for cross-city sharing of key
topics like CAP approaches, initiatives and
deliverables. Further centralizing is challenging
given divergent timelines and processes.
Item 3
PRESENTATION
For staff consideration generally, or as specific program ideas Comment Status Staff Comment
Could we add police vehicles and/or support for VTA electrification to the SVCE fleet electrification program?
Put in Parking Lot, for
Now
Given the scope of the planned SVCE program,
it may include some police vehicles but was
not intended to support VTA given the other
entities engaged in that effort.
Figure out specific recommendations for cities to reduce emissions from their own operations. Under Consideration
SVCE will continue to discuss with city staff to
identify support needed. City staff will play a
key role here.
Think about the lifetime of equipment we are incentivizing as a part of the prioritization. Plan to Include
Lifetime emissions is an important factor that
will be considered. Scalability and key SVCE
role will also influence decisions.
Support autonomous EV deployment. Put in Parking Lot, for Now
Will keep an eye on the technology and see
when/if SVCE could play an important role.
Support hydrogen vehicle deployment, particularly for VTA. Put in Parking Lot, for Now
Will keep an eye on the technology. SVCE’s
core role as an electricity provider fits more
naturally with EVs, and the EV market is
greater for residential. VTA has support from
other entities that are better suited.
Item 3
PRESENTATION
For staff consideration generally, or as specific program ideas New SV Clean Energy
PowerPoint Template
• Subtitle
Item 4
PRESENTATION
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Item 4
PRESENTATION
© SVCE's 2022 Building Electrification Policy Goals
Focus of
Today's
Discussion
Adopt, extend, or enhance, reach codes for new construction for all 13 member agencies
building electrification
EV charging infrastructure
for most, a strict timeline v/v new 2022 code
2) Develop and pilot policies to electrify existing buildings e.g. new AC must be a bidirectional heat pump, lower
remodel triggers
strategic timelines
For purposes of this discussion, "reach code" refers to energy code amendments, municipal ordinance amendments, and/or zoning code amendments (EV charging) Photo by Unknown Author is licensed under CC BY-SA-NC
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Item 4
PRESENTATION
New construction updates
2022 model reach code options drafted for buildings and EV charging individual meetings held with Board Directors and alternates to discuss jurisdiction-specific goals and strategy in twelve SVCE communities
three individual meetings with agency staff (others being scheduled) presentations to SCC City Managers and Cities Association scheduled for April four public workshops held in February
Existing buildings
technical feasibility analysis of policy options
designing a community workshop for existing buildings
Today's Presentation:
review new construction reach code update process and key milestones describe SVCE-provided resources for new construction reach codes outline next steps (yours and ours) 3
Jurisdiction Date Who Attended
Los Altos Hills 12/10/2021 Tyson, Schmidt
Los Gatos 12/13/2021 Rennie
Saratoga 12/17/2021 Walia
Milpitas 1/5/2022 Chua
Sunnyvale 1/5/2022 Klein, Larsson
Campbell 1/6/2022 Gibbons, Lopez
Gilroy 1/11/2022 Hilton, Armendariz, Bryce Atkins (staff lead) Cupertino 1/21/2022 Willey, Wei
Los Altos 1/21/2022 Fligor, Meadows
Mtn View 1/21/2022 Abe-Koga
SCC 1/28/2022 Lee, Sandy Runyan (Supervisor's staff)
Morgan Hill 2/4/2022 Martinez-Beltran, Eulo
Monte Sereno TBD
Item 4
PRESENTATION
Your input helps to strengthen our collective efforts ... 4 Item 4
PRESENTATION
© 2019 Success - Your Efforts Made a Difference
Type
Building
Electric
Preferred
Mostly-Electric
All-Electric
Gas Ban
No Reach
How it works
Allows mixed-fuel buildings with high energy
performance. Electrification-ready panel and wiring
in mixed-fuel buildings.
Water and space heating must be electric,
exemptions for other appliances. Electrification-ready panel and wiring in mixed-fuel buildings.
All appliances must be electric, with very limited
exemptions.
No gas hookup (via municipal ordinance). Limited
exceptions.
Meet state code minimum requirements.
SVCE Members
2 - Milpitas, Monte Sereno
4 - Campbell (res), Los Altos, Los Altos
Hills (res), Saratoga
5 - County of Santa Clara, Cupertino,
Los Gatos (res), Mountain View,
Sunnyvale
1 - Morgan Hill
1 - Gilroy
5 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
LOI
Conduct Outreach
Effective
Vote
Potential CEC Submittals
Define Goals
Agendize
Engage Staff
Define Approach
Write Code Language
Council Info Sessions
Item 4
PRESENTATION
© Key Reach Code Tasks and Milestones
Goals and Approach Defined
Reach Codes Agendized
City Manager LOI Signed
Staff Responsibilities Defined
Proposed Code language complete
Outreach conducted
Council informed
Final code language complete
Vote complete, same meeting as state
code adoption
Documentation done 6
Item 4
PRESENTATION
Member Agency Actions
Define goals & approach
Engage staff
Conduct outreach
Write reach code
Council vote
SVCE Resources
Meeting facilitation
Technical expertise
Coordinate and facilitate
workshops for electeds
Address technical questions
$10K grant for staff time
Council presentations
Consultant Resources
Draft model codes
Staff, advocate, building industry
workshops - regional
Develop and conduct jurisdiction-level presentations
Reach code customization
Council presentations
7 Item 4
PRESENTATION
1. Define goal - level of reach
Identify key staff contacts
2. Determine approach
(ordinance vs. energy code
amendment)
3. Agendize vote for fall (when
state code is adopted)
4. City Manager signs LOI .,.
;\
Item 4
PRESENTATION
Zoe Elizabeth - project manager
[email protected]
Bena Chang - legislative engagement
[email protected]
Tony Eulo - city staff engagement
[email protected]
Don Bray - strategic advisor
[email protected]
Farhad Farahmand - technical consultant
[email protected]
Pam Leonard - communications and
marketing
[email protected]
Peter Mustacich - SVCE technical lead
[email protected]
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Item 4
PRESENTATION
Most jurisdiction must re-up their Reach Codes for them to remain in effect (Morgan Hill and Campbell are exceptions)
Immediate next steps: define goals & approach, engage staff, agendize We are here to help
Your action matters - thank you!
10 1
• Subtitle
New SV Clean Energy
PowerPoint Template
Request Recommendation to BOD on
How to Allocate $3M in Customer Relief
Executive Committee
February 25, 2022
Item 5
PRESENTATION
2 On Feb 9, the SVCE BOD approved $3M in funding
for equity relief, to help mitigate rate increases.
Background
• Residential electricity rates (in total) set to increase 13-14% on March 1st
• Financial impacts of COVID remain a major issue
o Number of CARE/FERA customers up nearly 30% since early 2020 • In 2020, SVCE provided $3.4M in COVID relief credits to qualifying residential and small business customers
o two $50 bill credits in successive months for ~26,000 CARE/FERA residential customers
o one $250 bill credit to ~3,000 small business customers returning applications
• Staff to bring recommendation for new equity relief payments back to the BOD in March
Item 5
PRESENTATION
3 CARE/FERA Rate Relief – Primary Options
29,800 CARE/FERA
customers as of Feb 2022
Average Electric Bill
- $90.31 in 2022
- $76.62 in 2021
1) One-Time Direct Bill Credit
• $100 to all CARE/FERA customers
• deliver in April 2022
2) Multiple Direct Bill Credits
• e.g. eight monthly $12.50 credits
• deliver April through November 2022
3) Discounted rate for CARE/FERA
• raise discount above 1% for CARE/FERA customers
• estimated (annualized) discount in range of ~15%
• several months to implement
Item 5
PRESENTATION
4 CARE/FERA Rate Relief – Evaluation of Options
Option 1: One-Time Bill Credit
Mechanics Considerations
• Credit is announced to customers via direct
SVCE communication (mail, email, etc.)
• Calpine receives list of qualified customers
from SVCE
• A single $100 credit is applied to customer
accounts, with on-bill message
• Customer sees direct reduction in amount
owed
• Majority of customers owe less than $100
monthly to SVCE for generation
• Credit dollars above and beyond SVCE gen
charges will flow to PG&E side of bill (T&D, gas)
• Credit dollars above and beyond SVCE + PG&E
charges will exist on account as credit until used
• No additional admin cost for billing
Item 5
PRESENTATION
5 CARE/FERA Rate Relief – Evaluation of Options
Option 2: Multiple Bill Credits
Mechanics Considerations
• Credit is announced to customers via direct
SVCE communication (mail, email, etc.)
• Calpine receives list of qualified customers
from SVCE
• A smaller credit amount (e.g. $12.50) is
applied over multiple months (e.g. 8) to
customer accounts, with on-bill message
• Customer sees direct reduction in amount
owed
• Majority of customers owe less than $100 monthly to
SVCE for generation
• With smaller monthly credit amounts, dollars are
more likely to apply directly offset SVCE gen charges
• Customers will see a credit amount from SVCE over
a period of many months, versus one month
• Credit dollars above and beyond SVCE + PG&E
charges will exist on account as credit until used
• No additional admin cost for billing
Item 5
PRESENTATION
6 CARE/FERA Rate Relief – Evaluation of Options
Option 3: Rate Discount to CARE/FERA Customers
Mechanics Considerations
• Credit (or Discount) is announced to
customers via direct SVCE communication
(mail, email, etc.)
• SVCE develops rate product based on
participation and revenues, Calpine
implements and bills customers
• ~15% reduction in residential rates yields a
savings of $3M across ~30k customers for
12 months
• Customers must be noticed, moved to special rate,
then taken off a special rate
• Rate relief will be proportional to customers’ usage - high users will benefit more
• Considerable add’l admin costs associated with a
Calpine ‘special project’ to create new rate product
• CARE/FERA participation must be tracked weekly
• SJCE invested significant staff and financial
resources to create a similar product.
Item 5
PRESENTATION
7 CARE/FERA Rate Relief
Recommendation
Staff views Option 2 – Multiple Bill Credits as the best approach for implementing rate relief:
• 8 months, $12.50/month – for all CARE/FERA customers
• Simple and proven process, no incremental data/billing administration costs • Smaller monthly credit amounts over multiple months will usually offset SVCE charges, versus other portions of the energy bill
• SVCE credit amounts visible on bill for multiple months • Credits can begin flowing soon (April timeframe)
Item 5
PRESENTATION
8 Learn more svcleanenergy.org
[email protected]
1-844-474-7823
@svcleanenergy
Questions
Item 5
PRESENTATION
1 • Subtitle
New SV Clean Energy
PowerPoint Template
Delegation of PPA
Amendment
Authority to the CEO
Monica Padilla
February 25, 2022
Item 6
PRESENTATION
2 Existing PPAs/ESSAs
SVCE’s Commitment to CA RPS, CPUC Mandate and Board Policy Directives • Thirteen renewable resources Power Purchase Agreements (PPAs) and one Energy Storage Service Agreement (ESSA) and more to come
Item 6
PRESENTATION
~
Lifetime
Notto Average
Exceed Annual Annual Cost as
Approximate % Authority Cost % of Power Board
Developer Project Name Technology Contract Type of load in 2024 Term (years) (MM$) (MM$) Supply Cost Approval Recurrent
1 Energy/Canadian Solar Slate New Solar+ Storage PPA 6.7% 17 $198 $12 5% Oct-18 2 EDF Big Beau New Solar+ Storage PPA 5.8% 20 $196 $10 4% Oct-18 3 Ormat Casa Diablo New Geothermal PPA 1.4% 10 $43 $4 2% Feb-20 4 Middle River Power Coso Existing Geothermal PPA 9.6% 15 $331 $22 9% Mar-20 5 First Solar/LS Power Rabbitbrush New Solar+ Storage PPA 3.0% 15 $64 $4 2% Apr-20 6 Nextera Yellow Pine New Solar+ Storage PPA 4.1% 20 $128 $6 3% May-20 7 8 Minute Energy Aratina New Solar+ Storage PPA 6.6% 20 $174 $9 4% Jun-20 8 174 Power Global Atlas New Solar PPA 3.8% 10 $27 $3 1% Jan-21 9 Samsung Angela New Solar+ Storage PPA 1.4% 15 $35 $2 1% Mar-21 10 AES Mountain View Existing Wind PPA 3% 20 $128 $6 3% Apr-21 11 Origis San Luis West New Solar+ Storage PPA 4% 15 $74 $5 2% Apr-21 12 Clearway Victory Pass New Solar+ Storage PPA 8% 15 $149 $10 4% May-21 13 Terra-gen Cameron Crest Existing Wind PPA 5% 15 $150 $10 4% May-21 14 LS Power/Rev Renewables Tumbleweed Long Duration Storage ESSA n/a 15 $100 $7 3% Feb-22 Total 62% $1,797 $110 43%
3 CEO’s Authority Under PPAs/ESSAs
Ministerial and Administrative in Nature
• The Board delegates the authority to SVCE’s Chief Executive Officer (CEO) to execute the PPAs/ESSAs and the associated ancillary documents for the PPAs/ESSAs • Any deviation from the terms and conditions in the agreements requires a formal Board approval
Item 6
PRESENTATION
4 Unanticipated Circumstances
Many Lessons Learned in the Project Implementation
• Start of Power Delivery
• One project ready for power delivery well ahead of PPA COD date • Many projects will have power deliveries delayed beyond the PPA COD date due to Force Majeure Event • Ancillary Costs Not Contemplated in the PPAs/ESSAs
• Telemetry costs
• Cost of changing project configuration
• Pricing for Phased Project
• Some projects may take a phased approach, e.g. solar PV starts operation before energy storage • PPA does not address how pricing should be handled for a phased project • More lessons to come
These deviations require amendments to the existing PPAs Item 6
PRESENTATION
5 Need for Timely Amendments to the PPAs
Developers Need Certainty to Proceed with Project Development • Timeliness in amending PPAs to accommodate COD deviations is essential • Certainty in pricing and cost responsibility are essential The existing CEO’s authority does not extend to these types of PPA amendments Item 6
PRESENTATION
rA, s1L1coN VALLEY ~ CLEAN ENERGY
6 Recommendation Title of the Page
• Executive Committee recommends the Board of Directors approve to delegate additional authority to CEO to amend existing PPAs/ESSAs within the following guidelines:
• Any amendment shall not extend the term of the existing PPA or ESSA without Board approval; • Any amendment shall not change the pricing under the PPA or ESSA after the delivery term starts without Board approval;
• Pricing amendment to the test energy could be allowed if in CEO’s best judgement provides the best value to SVCE;
• Any amendment shall not cause the not—to-exceed budget for the life of the PPA or ESSA originally approved by the Board to be exceeded without Board approval; • The CEO will provide timely updates to the Board when amendments to the Agreements are executed under this delegated authority
Item 6
PRESENTATION
rA, s1L1coN VALLEY ~ CLEAN ENERGY