• Subtitle
New SV Clean Energy
PowerPoint Template
Item 4
PRESENTATION
Item 4
PRESENTATION
Action: Receive Exec Committee feedback & approval of
new program proposals for June board consent item
- Background
- Program recommendations for new community electrification engagement and demonstration programs
- Electrification Grants for Community Demonstration Programs - Community Education and Engagement Grants
- FutureFit Demonstration Home
rA, s1L1coN VALLEY ~ CLEAN ENERGY 2
Item 4
PRESENTATION
© Proposed Program & Budget Summary
$1.9M in funding available from 2021 PG&E carbon-free allocation savings Proposed Program
Electrification Grants for
Demonstration Projects
Community Electrification
Engagement Grants
FutureFit Demonstration Home
Budget
$1.2M
$350,000
$350,000
Selection Process
Competitive solicitation to all
member agencies (2-5 grants
anticipated)
Competitive solicitation to all
member agencies (2-5 grants
anticipated)
Open RFP issued to contractors
or workforce development
programs
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Item 4
PRESENTATION
Background - Past and Current Electrification
Education and Support Efforts
FY 20-21 strategic plan focused on a
"digital pivot"
SVCE developed robust online
resources and digital campaigns for
electrification education
In 2019, SVCE ran the All-Electric
Showcase Awards to highlight existing
all-electric homes and buildings
Resiliency grants offered to member
agencies in 2020
Electric Vehicle
Assistant
Appliances
Assistant
Solar + Battery
Assistant
Browse and compare cars, discover Building, doing a major remodel or Discover your options for a home solar incentives, and calculate your financial replacing appliances? Explore a wide system. Work with dedicated Solar and emissions savings when you drive variety of all-electric home appliances. Advisors to get multiple bids, an EV. Also, explore charging options Browse and compare with efficiency understand financing options and learn for home and on the road, all with the scores, explore customer reviews, track how battery storage can benefit you EV Assistant. prices and even find an installer. with the Solar+ Battery Assistant.
EV ASSISTANT rt APPLIANCES ASSISTANT rt SOLAR + BATTERY ASSISTANT rt eHub resources
rA, s1L1coN VALLEY ~ CLEAN ENERGY 4
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Item 4
PRESENTATION
Proposed programs will help advance electrification education through community engagement -- --------------------------
Higher visibility across customer segments
Showcase solutions to customers and key
stakeholders
Demonstrate accessibility and demystify all-electric technologies Provide support to member agencies, community
organizations, and others working toward similar
goals
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Item 4
PRESENTATION
Electrification Grants for Community
Demonstration Projects
Focused on public/community buildings and affordable housing Member agencies eligible to receive grants
Intended to stimulate and support projects that would not otherwise occur Eligible activities include:
- Decarbonization of government-owned buildings and fleets - Affordable housing project electrification and/or renewable energy/storage development
- Demonstration site development
rA, s1L1coN VALLEY ~ CLEAN ENERGY 6
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Item 4
PRESENTATION
Community Electrification Engagement Grants
Provide funding for member agency outreach and engagement activities Inspired by City of Mountain View electric yard care pilot Support for electrification-aligned member agency engagement programs EV ride & drives
Smart power strips purchases
Induction cooking education and promotion
Other electrification outreach
rA, s1L1coN VALLEY ~ CLEAN ENERGY 7
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Item 4
PRESENTATION
Mobile demonstration unit that can be toured at community events The demonstration home will feature all-electric appliances (heat pump heating and cooling, heat pump water heater, induction
cooking, smart thermostat, solar+battery,
etc.)
Will bring electrification education to
customers where they are and stand out at
events in an attractive display
Engage local workforce in
building/installation, storage and transport
rA, s1L1coN VALLEY ~ CLEAN ENERGY 8
Item 4
PRESENTATION
© Proposed Program & Budget Summary
$1.9M in funding available from 2021 PG&E carbon-free allocation savings Proposed Program
Electrification Grants for
Demonstration Projects
Community Electrification
Engagement Grants
FutureFit Demonstration Home
Budget
$1.2M
$350,000
$350,000
Selection Process
Competitive solicitation to all
member agencies (2-5 grants
anticipated)
Competitive solicitation to all
member agencies (2-5 grants
anticipated)
Open RFP issued to contractors
or workforce development
programs
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Item 4
PRESENTATION
Today - Action: Approve program recommendations for board approval on the June consent calendar
June - Seek board approval of funding allocations
03 - Further develop detailed program design
Q4/Q1 '23 - Launch programs
10 Item 4
PRESENTATION
Item 5
PRESENTATION
Business Process
Optimization (BPO)
Update
SVCE Executive Committee
May 27, 2022
A
M **
CURRENT STATE
1. Small group of people managing multiple
large transactions (~$275MM annually)
2. Leveraging many consultants & outside
experts
3. Adapting to new regulations continuously
4. Manual and labor-intensive processes
create operational and business
continuity risks
5. Non-integrated data impedes ability to
efficiently and effectively make insightful
data-driven decisions
Item 5
PRESENTATION
Overview
BPO is a key initiative under the strategic focus area: Internal Operations & Cyber Risk Management Auditable
Data, systems, standards and
processes are auditable, documented,
Integrated and incorporate proper controls Automated
Integrated, single source of truth;
common assumptions/inputs,
connections between functions
Processes, analyses and reporting
are automated, streamlined and K efficient \
Future /
Engaged Secure K Full staff engagement, "buy-ln",
efficacy and efficiency; tools responsive
to needs; appropriate training;
embedded in culture
Data and systems are centralized
and secure; users have appropriate
levels of access
Adaptable Right-Sized
The system is right-sized for our org
but scalable and extensible to
accommodate anticipated needs
The system is adaptable to
accommodate changes to business
requirements and technology
2 What will we have achieved as a result?
3 Efficiency
Staff is highly efficient; little to no re-work, manual processes; staff time freed up to focus on high-value work
Data Security
Data is secure; clean IT/AMI
audits; proper data permissioning
Overarching Achievement: Competitive Advantage
Keeping rates affordable while achieving climate targets; ability to move faster than our neighbors; industry leader Effective Risk Management
Optimized system leads to effective risk management
(market, credit, liquidity, operational, and enterprise risk); checks/controls prevent mistakes, compliance breaches,
supplier requirements; data integrity garners confidence in results, decision-making; designated accountability
Customer Satisfaction
High participation rate and enhanced customer
experience through compelling rate and program
offerings, effective digital engagement
Optimal Decision-Making
Robust and enhanced analyses, better insight and
judgement, optimal decision-making; enhanced ability
to plan/procure/track resources & design/deploy
programs; management of supplier relationship
Item 5
PRESENTATION
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Item 5
PRESENTATION
Phased Implementation of a Detailed Roadmap
Current: Phase 1 of the project focuses on
Deal Capture and Settlements
FY 21-22 budget: $900,000
Contracts Under Consideration
Initial Implementation: $200Kto $600K
Annual Ongoing Costs: $200K to $400K
(subject to annual escalation of
approximately 2-5%)
ETRM & Regulatory Compliance Mgmt.
Integrated, Automated, and Auditable Business Process
Input Systems,
Models & Files
Analytical Models &
Tools
Users
Market Data
o Dashboards
Credit Analysis
Limits)
Credit Exposure
Phase 2 will focus on portfolio and risk
management integrations
Net Revenue@Risk
PCIA & PG&E Rate
Assumptions Liquidity@Risk
Alerts,Metrics, & Reports
IncludingCompliance Phase 3 will be defined later but could include:
Scheduling &
Settlements;
Customer Relationship Management Including
Program Design and Implementation
Meter Data Forecasting and Analysis
Financial Management and Modeling
4 Item 5
PRESENTATION
CD Current Project - Phase 1
Deal Capture and Settlements System
• System to store and maintain the entire SVCE wholesale portfolio (PPAs, transactions, load forecast on an hourly basis)
• Tool to communicate our portfolio to scheduling coordinator and the CAISO
• Migration from Excel
• Mitigate operational risk
Deal
Capture
• Validate all SVCE’s supplier contracts (including complex PPAs) • CAISO market settlements (becomes crucial with physical resources in Settlements the portfolio) V 5
Item 5
PRESENTATION
Recap: process taken and work completed to date
• BOD approved project budget FY 2021
• RFP Released February 2022
• Proposals evaluated based on RFP criteria March 2022 and shortlisted • Vendor interviews
• Rated proposals based on defined list of functional
requirements
April 2022
• Working on vendor finalization and May 2022 reference checks 6 Item 5
PRESENTATION
Next Steps for Deal Capture and Settlements System
• Contract negotiation June/July 2022
• Seek BOD approval August 2022
• Work commences Aug. & Sep. 2022
• Project timeline
Balance of FY22 & 23 • Vendor proposals indicate a 6-12-month implementation plan • Implementation complete
Late FY23 & early FY24
7 Item 5
PRESENTATION
THANK YOU!
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Item 5
PRESENTATION
xipueddv
10 Future State of SVCE’s Business
Item 5
PRESENTATION
Customer Relationship
Management
(Meter Data Presentation, Program
Participation Tracking, Customer
Trends/Recommenadions,
Customer Engagement Tracking,
Green Button Connect, Custom
Billing)
ETRM
(Deal Capture/Confirmation,
Position Management, Risk
Analytics, Settlements, Simulation
Modeling [Net Energy Position,
Cost of Energy, Net Revenue at
Risk, etc.])
Regulatory Compliance
Management
(RPS, Carbon/Carbon Free,
Resource Adequacy, other required
reporting [ex. EIA-861])
Revenue & Rates
(Revenue Model, Rate Model, Net
Revenue Pro Forma)
i k
i T
Strategic Analysis &
Programs Development
(Program/Rate Scenarios,
Customer Segmentation/Analysis,
Avoided Cost/Emissions Model,
GHG Forecasting Model)
Financial Management and
Accounting
(General Ledger,
Payables/Receivables, Budgeting,
Compliance)
Meter Data Forecasting and
Analysis
(Load Profile Analysis, Load
Forecasting, Misc Reporting,
Load/Forecast Aggregation)
1 i 4
J
I
Central Data Repository
(e.g. DAISY data warehouse,
future power supply data
store, etc.)
j
‘ ‘ X 1
i
Other Datasets
(CAISO, weather, census, tax assessor, DMV, third-party program, third-party DER providers, resource telemetry, third-party forecasting, scheduling and settlement)
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«
Calpine PG&E
11 ETRM & Regulatory Compliance Mgmt.
Integrated, Automated, and Auditable Business Process
Central Data Repository
Dashboards
Alerts, Metrics, & Reports
Including Compliance
Input Systems,
Models & Files
Deal Capture
(DA, HA, Fwds, CRRs,
Options, etc.)
Market Data
(Fwds, Vols, Correlations,
historical CAISO)
Credit Analysis
(Credit Limits)
Load Forecast
Scheduling &
Settlements;
Analytical Models &
Tools
Mark-to-Market
Portfolio Mgmt
(Open Position, Contract
Valuation, Production Sim?)
Net Revenue@Risk
Liquidity@Risk
Credit Exposure
Bilateral Settlement
Analysis
Users
PCIA & PG&E Rate
Assumptions
Accounting and
Invoice Data
Meter Data
Forecasting and
Analysis
Financial
Management and
Accounting
Revenue & Rates
Item 5
PRESENTATION
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Item 5
PRESENTATION
RFP Evaluation Criteria
Deal Capture
Flexibility, Credit/Trader Limits, Deal Templates / Types / Hourly profiles, Deal Confirmation Generation, Built-In Reports Contract Management
Document storage, Integration with Deal Capture
PPA Management
Ability to capture PPA components
Settlements System
CAISO integration, Validation Parameters, Invoice Tracking/Reconciliation Overall Functional/Technical
Reporting/Customization, Security/Roles/Permissions/Auditing, Database design, Connectors with external systems, Ongoing internal IT needs Ease of Use
Proposed Work Plan and Schedule
Implementation Plan, Start to Finish Schedule, External Effort, Internal Effort, IT/Consulting Needs Customization
W/O touching code, W/ touching code
Staff Qualifications
Technical Knowledge, CAISO/California Experience, Support Staff/Service Level Agreement 12 1
• Subtitle
New SV Clean Energy
PowerPoint Template
Stress Test Analyses
Amrit Singh
Executive Committee Meeting
May 27, 2022
Item 6
PRESENTATION
2 Presentation
Highlights
• Construction of Stress Test
Cases
• Expectation vs Results • Insights on Drivers of
Biggest Financial Risks
Purpose
Present findings of the
stress test analyses
Item 6
PRESENTATION
3 Stress Scenarios for CY 2023 to CY2027 (five-year horizon):
1. Significant drop in energy prices including REC
• Higher PCIA and lower PG&E Gen Rate
2. Insufficient financial liquidity
• Price collapse triggers credit downgrade
• Collateral calls from counterparties and CAISO
• Increase in POLR (Provider of Last Resort) funding (called FSR – Financial Security Requirement)
3. PPAs default, renegotiate for higher prices, and/or delay start • RPS non-compliance penalty
• Replacement at higher prices
4. Load loss due to direct access and distributed load
5. Threat to Public Services or Facilities
Stress Test Scenarios
Extreme but plausible scenarios that can deplete reserves and make SVCE uncompetitive. • Ensure adequacy of
reserves and
organizational resiliency
• Guide development of
strategic plan
• Shape FY 22-23 budget
and reserve targets
• Price uncertainty Drives
the first 4 scenarios
Item 6
PRESENTATION
4 Expectation versus Analyses Results
Revenue sensitivity to market prices via PCIA and PG&E Gen rate impacts dwarf other stress factors.
Stress Case Expectation Results from Analyses
1. Prices Collapse Significant reduction in revenues and large draw of reserves
Same as expected
2. Price Collapse leads to
insufficient liquidity
Large draw of reserves Price collapse does not trigger any significant liquidity needs. New POLR requirements require $35 million in
liquidity.
3. PPAs default/delay/renegotiate
for higher prices
Price increases result in higher
replacement cost and higher
compliance penalties
Price increases lead to substantial increases in
revenues which far exceed expected increase in
procurement costs.
4. Load Loss Price Collapse leads to stranded
assets
Load loss helps the bleeding from negative margins
caused by significant reduction in revenues. Results are better than stress case 1.
Assumes current rate setting methodology continues.
Item 6
PRESENTATION
5 PCIA and PG&E Gen Rate determine SVCE Rates and
therefore Revenues
Key Takeaways – Price Uncertainty Stress Scenarios (1-4) SVCE Gen Rate SVCE
discount
PG&E Gen Rate: PCIA
Biggest contributor to risk: PCIA and PG&E Generation Rate Uncertainty.
Revenues
PCIA
PCIA
Revenues
PG&E Rate
PG&E Rate
Revenues decline when prices decline
Item 6
PRESENTATION
6 • PCIA2023 = PCIA Balancing Account2022 + Forecast Balance • Balancing Account = (Prior Year’s Forecast Prices2022 - Actual Prices2022)* PCIA Portfolio • Forecast Balance = (Legacy Contract Costs – Forecast Prices2023)* PCIA Portfolio • PG&E Gen Rate Set Similarly
• PG&E Gen Rate = ERRA Balancing Account + Forecast Costs * Simplified representation of concepts
Key Takeaways – Price Uncertainty Stress Scenarios –
Cont’d
Big contributor to PCIA and PG&E Generation Rate Uncertainty is Market Prices.
Can’t fully bank current year’s margin
• Deviations between actual and forecast costs are tracked in balancing accounts and trued up next year • If prices drop, then there can be substantial draw from reserves Next Year’s PCIA &
PG&E Gen Rate
Current Year’s actual
realized Prices
Forecast of Next
Year’s Market Prices
Item 6
PRESENTATION
7 Key Takeaways – Price Uncertainty Stress Scenarios –
Cont’d
Price collapse poses biggest financial risk.
• Revenues drop significantly
• Loss of revenues far exceed
savings from lower power
procurement costs
• Power procurement savings
dampened by existing hedges
Item 6
PRESENTATION
8 Past, Current, and Stress Case Modeled Commodity Prices • Forward prices are at all time
high.
• Extreme case of runup in
prices
• Most of the increase occurred
in the last 12 months.
• Can’t predict future but price
trends could reverse, and
prices could drop equally or
more.
• Prices were trading at the
modeled stress test levels as
recently as 12 months ago.
Past Future
$/Mwhr
Item 6
PRESENTATION
9 Base Case
High forward prices result in low PCIA and high PG&E Gen Rates resulting in healthy SVCE Margins. • If current forward prices are realized
and other model assumptions prevail:
• Significant growth in reserves from forecast
2022 level of $227 to $322 at the end of 2023
• Continued strong growth in margins over the
next 5 years
• Caveats:
• PCIA and PG&E Gen Rate portfolio
assumptions based on public data as best
modeled by NewGen Consultants
• PG&E’s portfolio management strategy and
portfolio contents may change from those
modeled
• CPUC may moderate rate impacts
• Uncertainty increases further out in time
• Focus on delta of base case to stress
test results
Current Reserves Targets:
• Minimum: 120 days
• Goal: 230 days
• Maximum: 320 days
$ millions
2023 2024 2025 2026 2027
Revenues $ 398 $ 410 $ 391 $ 374 $ 375
Power Supply Cost $ 271 $ 281 $ 279 $ 272 $ 272
Operating Margin $ 127 $ 129 $ 112 $ 102 $ 102
Other Costs $ 32 $ 32 $ 33 $ 33 $ 34
Net Contribution to Reserves $ 95 $ 97 $ 79 $ 69 $ 69
Projected Reserve Balance $ 322 $ 418 $ 497 $ 566 $ 635 Days Cash on Hand 388 487 582 677 758
Uncertain
Highly
Uncertain
Item 6
PRESENTATION
10 Reserve Balances Under Each Scenario
Projected Reserve Balance ($ millions) 2023 2024 2025 2026 2027
1. Prices Collapse $ 322 $ 144 $ 106 $ 67 $ 31
2. Price Collapse leads to insufficient liquidity $ 287 $ 109 $ 71 $ 32 $ (4)
3. PPAs default/delay/renegotiate for higher prices $ 334 $ 175 $ 153 $ 128 $ 105
4. Load loss $ 322 $ 144 $ 118 $ 92 $ 79
Corresponding Days Cash on Hand (DCOH) 2023 2024 2025 2026 2027
1. Prices Collapse 388 181 138 90 41
2. Price Collapse leads to insufficient liquidity 346 137 92 43 (5)
3. PPAs default/delay/renegotiate for higher prices 420 235 212 179 148
4. Load loss 388 181 177 141 143
Draw on Reserves
of $178 million.
Below minimum
target of 120 DCOH.
Add'l $35 million
for POLRFSR.
Item 6
PRESENTATION
11 Risk Mitigations
Best mitigation is to hold sufficient financial reserves.
Use results of these analyses to propose reserve target for next fiscal year’s budget • Examples:
1. Target/Build reserves such that if scenario 2 were to occur, reserves do not fall below the minimum reserve threshold of holding 120 days of cash (DCOH) on hand over the next
• 2 years
Or
• 5 years
2. Build reserves such that if scenario 2 were to occur, reserves do not fall below the minimum reserve threshold of holding 120 DCOH over the next 2 years and 60 days DCOH over years 3 to 5. • Level selected determines funds for additional customer discounts and decarbonization programs Other Risk Mitigation:
• Revisit current energy hedging strategy
• Allow for loss in revenues from price collapse to be mitigated by reduction in power supply costs • Challenges:
• Determining level of hedging given uncertainty in modeling PCIA and PG&E Generation Rates • Increased volatility in Power Supply Costs, Budget, and Reserves Item 6
PRESENTATION
12 Appendix
Item 6
PRESENTATION
13 Summary of Stress Test Results
Stress Case 1 - Significant Drop in Energy Prices
2023 2024 2025 2026 2027
Revenues $ 398 $ 112 $ 240 $ 236 $ 236
Power Supply Cost $ 271 $ 257 $ 246 $ 240 $ 239
Operating Margin $ 127 $ (145) $ (5) $ (5) $ (3)
Other Costs $ 32 $ 33 $ 33 $ 34 $ 34
Net Contribution to Reserves $ 95 $ (178) $ (38) $ (38) $ (36) Reserve Balance $ 322 $ 144 $ 106 $ 67 $ 31
Days Cash on Hand 388 181 138 90 41
Stress Case 3 - PPAs Default
2023 2024 2025 2026 2027
Revenues $ 398 $ 112 $ 240 $ 236 $ 236
Power Supply Cost $ 258 $ 239 $ 229 $ 227 $ 226
Operating Margin $ 139 $ (127) $ 11 $ 9 $ 11
Other Costs $ 32 $ 33 $ 33 $ 34 $ 34
Net Contribution to Reserves $ 107 $ (159) $ (22) $ (25) $ (23) Reserve Balance $ 227 $ 334 $ 175 $ 153 $ 128 $ 105
Days Cash on Hand 420 235 212 179 148
Stress Case 4 - Load Loss
2023 2024 2025 2026 2027
Revenues $ 398 $ 112 $ 216 $ 212 $ 189
Power Supply Cost $ 271 $ 257 $ 210 $ 204 $ 168
Operating Margin $ 127 $ (145) $ 7 $ 8 $ 21
Other Costs $ 32 $ 33 $ 33 $ 34 $ 34
Net Contribution to Reserves $ 95 $ (178) $ (26) $ (26) $ (13) Reserve Balance $ 227 $ 322 $ 144 $ 118 $ 92 $ 79
Days Cash on Hand 388 181 177 141 143
Stress Case 2 - Insufficient Liquidty
2023 2024 2025 2026 2027
Revenues $ 398 $ 112 $ 240 $ 236 $ 236
Power Supply Cost $ 271 $ 257 $ 246 $ 240 $ 239
Operating Margin $ 127 $ (145) $ (5) $ (5) $ (3)
Other Costs $ 32 $ 33 $ 33 $ 34 $ 34
Net Contribution to Reserves $ 95 $ (178) $ (38) $ (38) $ (36) Reserve Balance $ 227 $ 322 $ 144 $ 106 $ 67 $ 31
After FSR Requirement $ 287 $ 109 $ 71 $ 32 $ (4)
Days Cash on Hand 346 137 92 43 (5)
Item 6
PRESENTATION
14 Illustrative Methodology for Setting Target Reserves 2023 Required
Reserve Level
2023 Required
DCOH
Available for Add'l
Expenditure*
Next 5 years Reserves Remain Above 120 DCOH $380 million 460 $0 Next 4 years Reserves Remain Above 120 DCOH $345 million 415 $0 Next 3 years Reserves Remain Above 120 DCOH $310 million 370 12 Next 2 years Reserves Remain Above 120 DCOH $275 million 329 $47 * Based on current base case modeling.
Illustrative Methodology: Target reserves such that if scenario 2 were to occur, reserves do not fall below the minimum reserve threshold of holding 120 days of cash (DCOH) on hand over the next 2 years.
Base Case Reserve Projection: $322 million
Less Reserve Target: $275 million
Available for Add'l Expenditure: $47 million
Item 6
PRESENTATION
15 1. Significant Drop in Prices
Stress Scenario Construction*
• Energy: Statistical 1% low case prices
• RECs : 50% of current equilibrium curve
• RA : 50% of current RA cost
• Term : CY2023 to CY2027
• PCIA and PG&E gen-rate forecasts: NewGen
Model
• Price drops at once for all forward months and
stays at that level
• Hedges executed per ERM thresholds (hedge
to max targets)
• Current:
• Reserves to withstand the shocks
• Additional
• Additional reserves if needed
• Consider revising hedging strategy to
account for PCIA / gen-rate variability to
energy prices in the hedge plan
Mitigation Strategies
*Most stressful year modeled for term
Item 6
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
16 2. Insufficient Financial Liquidity
Stress Scenario Construction
• Persistent price raise followed by a steep/quick price collapse
• e.g., 2006 to 2008 price raise followed by the credit crisis scenario happens in year 4.
• Take nat. gas forwards from 2006 to 2008 and replicate the % changes to current energy price levels.
• All new hedges to the generic counterparty - avg.
unsecured credit given to us.
• Ratable execution based on ERM thresholds
• Increase POLR funding/ FSR impact – is additional cash impact – ~$ 35M - depending on methodology adopted
• Current:
• Lockbox
• Reserves
• Additional
• Exploring more counterparties in lockbox
• Reframing of credit policy
• Additional reserves if needed
SVCE Mitigation Strategies
Item 6
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
17 3. PPAs default and delay start
Stress Scenario Construction
• Some assets default and rest of them not online
yet will be delayed by ~6 months
• Valuation will include
• MTM of the defaulted assets and delays
(replacement at higher costs)
• SB350 penalties
• MTR penalties
• Current:
• Diversify technology
• Diversify counterparty
• Contractual language for delay damages
and default provisions
• Reserves to withstand the shocks
• Adding 10- year existing asset PPA to
exceed CP4 limits.
• Additional
• Additional reserves if needed
SVCE Mitigation Strategies
Item 6
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
18 4. Load Loss Due to Direct Access and Distributed Load Stress Scenario Construction
• Load Loss of 10% in Year 3 and another 10% in
Year 5
• DER – replicate the IEPR scenarios delta from
baseline to high DER scenario
• Prices in years 3-5 collapse to one percentile
(load loss creates stranded asset risk)
• Current:
• Custom Pricing to lock Customers to 10
years
• DER - NEM reform
• Additional:
• Seek non-bypassable charges (NBC) from
CPUC. PG&E has it, we don't.
• Additional reserves if needed
SVCE Mitigation Strategies
Item 6
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
19 • Operational Risks
• Modeling Errors
• Process Failures
• Governance and Risk Control Weaknesses
• Additional Risks from Regulatory and Legislative Actions • Additional Areas of Risks that can affect SVCE’s Services and Facilities
Other Potential Stress Test Scenarios
These could be considered in future analyses.
Item 6
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
1 • Subtitle
New SV Clean Energy
PowerPoint Template
Digital Engagement &
Customer Awareness
Update & Takeaways
Pamela Leonard, Communications Manager
Don Bray, Director of Energy Services & Community Relations Item 7
PRESENTATION
2 Purpose
Provide an update and key takeaways on digital engagement and customer awareness in relation to SVCE and electrification initiatives • Key digital engagement goals and metrics
• Website engagement
• Email outreach
• Online promotions
• Key takeaways and results of recent customer engagement survey Item 7
PRESENTATION
3 Background – The Digital Pivot
SVCE highlighted a ‘digital pivot’ - a shift to increase customer digital engagement, as a FY '20 - '21 Strategic Focus Area • Electronic communications are scalable, high-reach and low cost
• Digital Engagement Tools & Updates Implemented
o eHub – Online content, resources & services
o Granicus GovDelivery – Email marketing service
o Website redesign and content update
Homepage before redesign
Item 7
PRESENTATION
4 Background – Goals of eHub
Educate
Bring electrification to
customers' minds
• Emails
• Advertising
• Messaging
• Website content
• Sweepstakes
• Promotions
Inspiration
&
Awareness
Provide knowledge to
customers of
electrification
benefits
• Online resources
• Website content &
digital collateral
• Emails
• Promotions
• Sweepstakes
Assist customers to take
action
• Rebates
• Purchasing portals
• Concierge services
• Connecting customers to
SVCE programs and
outside resources
• Have the information to
start the buy > install >
operate process
Action
Supporting customer’s electrification journeys
Strategic Goal 11:
Empower customers
with the awareness,
knowledge and
resources needed to
make effective clean
energy choices
Item 7
PRESENTATION
5 Education
through
Digital
Engagement
Item 7
PRESENTATION
6 Website Engagement Grows After Digital Pivot
Increased number of users to the SVCE website by 280% with the digital pivot • Website user comparison before and after ‘digital pivot’ o Before: 65,732 users - September 1, 2018 - April 30, 2020 o After: 249,852 users - September 1, 2020 - April 30, 2022 • Tactics used to increase engagement include
o Email marketing with online promotions and sweepstakes o Digital, in-language and out-of-home advertising
o Member community cross-marketing
o Social media
• Conducted user testing to continue to further improve and optimize the website for customer use and education
Digital display ad examples
Item 7
PRESENTATION
7 Customers are engaging with eHub resources and
services
FY 21-22 Goal: Reach 200,000 unique users with eHub resources Surpassed FY
20-21 goal of
reaching 20,000
unique users by
reaching over
74,000 unique
users to eHub
resources
Item 7
PRESENTATION
8 Customers are spending time learning with the
eHub resources
A high average time on page shows how customers are engaging with the content and materials on the website
eHub Resource Unique Visits Average Time on Page
SVCE eHub Webpages 26,951 2 min 39 seconds
EV Assistant 17,633 2 min 15 seconds
Solar+Battery Assistant 9,425 1 min 34 seconds
Appliances Assistant 89,370 1 min 41 seconds
*54 seconds is the average time on page for all industries and between 2-3 mins is considered good. (Contentsquare’s 2021 Digital Experience Benchmark report)
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9 Inspiration &
Education
through Email
Campaigns
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10 Direct email campaigns produce a significant increase in electrification education and online engagement
FY 21-22 Goal: Deliver 2 million emails to customers with a 30% open rate Exceeded FY 20-
21 Goal of
sending 1 million
outbound emails
by delivering
over 2.1 million
emails
*SVCE's average open rate to date is 35%.
Industry-standard is about 22% (Enervee
Performance Benchmarks)
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11 Implementing learned best practices for email
content and design
• Crafting emails to provide education
on electrification with fun, easy to
digest language and calls-to-action
• Video content is an effective
educational tool within emails that
receive high engagement
• Creating an understanding of what
earns customers' attention through
A/B testing
• In-language email content increases
in-language website engagement
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12 Inspiration &
Action with
eHub
Promotions
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13 Ran promotions to inspire action and build
electrification education and awareness
Expanding and evaluating promotions to implement lessons learned for future offers
• Through promotions,
customers received
money off a purchase of
eligible electric items up
to $50.
• 1,097 total rebates
claimed through the
Appliances Assistant
with SVCE promotions.
243
93 6
235
520
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14 ‘Go Electric’ Earth Day Sweepstakes
Engaged customers through an online sweepstakes to share electrification resources and education on the benefits of all-electric homes • Prizes included the choice of an e-bike, induction
hob and Le Creuset cookware set, all-electric yard
care equipment or a $600 bill credit.
Users
Actions
Entries
4,364
25,397
98,390
Sweepstakes Engagement • Sweepstakes incentivized learning about the benefits of induction cooking and an all-electric
home, and features eHub resources.
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15 Providing 'concierge service' for customers
interested in home solar+battery
With the Solar+Battery Assistant, customers can identify their needs, have a system designed, and receive quotes from multiple local contractors Leads
Proposals
Sales
Sales that include a battery
387
189
36 20
Glossary:
Leads - customers who have created an account through the solar portal Proposals - leads that have completed a consultation call, provides necessary information, and received offers
Sales - leads that have selected an offer and signed a contract • Customers can get $1,000 off the
installation price of a main service panel
upgrade for a battery or solar+battery
installation.
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16 Customer Awareness
Survey
Key Findings & Takeaways
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17 Background
SVCE has deployed two customer awareness surveys through third-party ADM Goal: Measure SVCE customer awareness and engagement
• First survey conducted September - October 2020
o Presented findings to the Board of Directors at Jan. 2021 meeting • Recent survey conducted March – April 2022
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18 Methodology – 2022 Survey
• Administered via phone and email
o Provided in English, Traditional Chinese, Spanish and Vietnamese • 481 survey respondents
• Survey responses received in equal numbers from customers in four census tract groupings - ‘SEVI Quartiles’
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19 Majority of customers stated that they had heard of
SVCE
• Unaided recall of SVCE was 10% of respondents
• Once prompted with the name SVCE 73% of respondents heard of SVCE o No statistically significant increase from 2020 survey • 38% of respondents were aware of programs offered by SVCE Key takeaway: Most customers think of PG&E first
as their power provider; SVCE awareness requires
differentiated branding and messaging, and continued
outreach and education efforts
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20 Survey showed a significant increase in SVCE website visits from 2022 compared to 2020
• 22% of respondents answered that they
had visited the SVCE website
• This is a statistically significant increase
from 14% in 2020
Key takeaway: Continue marketing efforts
to increase website visits and engagement
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21 Cost, health and safety were the most important in
making purchasing decisions
• Costs were more important for individuals in SEVI 3 and 4 compared to SEVI 1 and 2
• Convenience and performance were more important for individuals in SEVI 1 Key takeaway: Increase education on cost savings and information on rebates to customers in SEVI 3 and 4, and health/safety messaging in overall marketing efforts
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22 On average customers are moderately concerned
about their fossil fuel usage
• Level of worry about fossil fuels use was lower in 2022 than 2020 Key takeaway: The 'current events' landscape in which the surveys were administered are different. Messaging can be flexed/tailored to lead with other benefits of going all-electric and include the reduction of fossil fuel as an additional benefit of all-electric technologies.
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23 Understanding customer interest and barriers to electric technologies inform messaging and program design
Interest:
• Most respondents have some level of interest in electric vehicles • Few homeowners have a heat pump water heater or have heard of one Barriers:
• Cost is among the top 5 barriers to adoption for each electric technology • Technology-specific barriers:
o EVs – driving range & charging locations
o Heat pump water heaters - Not having enough information, need to upgrade electric system/panel and concerns about technology reliability
o Solar+battery – Not enough information, reliability of technology and “other” barriers such as economics, space, and residence restrictions
Key takeaway: When delivering content on specific all-electric technologies, it is important to directly address top customer concerns and provide relevant resources Item 7
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24 Questions?
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