• Subtitle
New SV Clean Energy
PowerPoint Template
Item 3
PRESENTATION
Item 3
PRESENTATION
Request for Executive Committee Action: discuss and approve staff recommendation on a budgetary commitment to support electric vehicle charging in new affordable housing developments
Background
- State Code
Recommended Reach Code
- Suggested Approach
rA, SILICON VALLEY r- .._
~ CLEAN ENERGY ~
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Item 3
PRESENTATION
Housing crisis well-documented in SV
Affordable housing challenging to fund and construct
State law now making local governments more "responsible" for actual housing production - not just zoning
State regulations, trends, and climate action activities are increasing the number of electric vehicles (EVs) on the road
Charging at home is strongly preferred and least costly way to charge EVs Electric vehicle charging infrastructure (EVI) is an emerging cost component in housing production
SVCE approved $1.5M in funding assistance for affordable housing development to meet EVI reach codes via "double-down" budget allocation rA, s1L1coN VALLEY ~ CLEAN ENERGY 3
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Item 3
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Base State Code will take effect in January
For EVI, calls for mix of high-power, mid-power, and low-power charging opportunities
Provides charging opportunities for 40% of the number of units rA, s1L1coN VALLEY ~ CLEAN ENERGY 4
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Item 3
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SVCE Recommended Reach Code for EVI at
Multi-family Developments
Both equity considerations and climate action considerations call for multi-family occupants to have access to EVI at home
SVCE model reach code calls for access to 100% of the units, e.g., a 100-unit apartment building would need a total of 100 opportunities to charge Mix of high-power Level 2 and low-power Level 1 chargers in order to balance access and cost
Increases development cost by approximately $1,000 per unit over State Code rA, s1L1coN VALLEY ~ CLEAN ENERGY 5
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Item 3
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Cost Implications of SVCE Model Reach Code
Given cost of producing housing, $1,000 per unit is not terribly significant Given depth of housing problem and challenge to construct affordable units, any increase will be considered significant by some
Regional Housing Needs Allocation (RHNA) numbers call for 7,564 very low income and low income units in the SVCE territory to be built in this 8-year cycle At $1,000 per unit, the collective construction cost increase is $7.5M during the three-year period
rA, s1L1coN VALLEY ~ CLEAN ENERGY 6
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Item 3
PRESENTATION
Request that EC recommend to the Board the
following approach for EVI Support
Current budget allocation is $1.5M; max impact of model code is $7.5M Staff recommended approach:
1. Consistent with our Equity Framework, SVCE states it is committed to ensuring that residents in new affordable housing developments have equal access to EV charging opportunities by funding the incremental costs of EVI associated with the SVCE recommended model code for this cycle; and
2. Authorize staff to re-allocate unspent or future programs dollars up to $6M to cover the impact of the EVI model code on affordable housing - dollars would be added above the currently budgeted $1.5M as needed, depending on how many jurisdictions adopt the code and construction that actually occurs. Additional funds from future programs allocations will be incorporated into the recommended budget presented to the Board.
rA, s1L1coN VALLEY ~ CLEAN ENERGY 7
Item 3
PRESENTATION
New SV Clean Energy
PowerPoint Template
Subtitle
Item 4
PRESENTATION
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Item 4
PRESENTATION
Discuss Budget Framework
Seeking feedback/validation on
principles and assumptions
Budget numbers to be computed in
July based on feedback
Methodology could be tweaked if
results from actual numbers in July do
not align with expectations
1. Revenue Modeling
PCIA and PG&E Gen Rate
Uncertainty
2. Reserve Targets
3. Customer Discount Rate and
Funding for Programs
4. Power Supply Costs
5. Other Cost Drivers
Personnel, BPO, Legal,
Cybersecurity
Item 4
PRESENTATION
© FY22-23 Budget will be ready for Discussion in August Budget Framework
at Exec Comm
August (tbd)
Present Draft
Budget to Finance
&Admin Comm
August 8
Present Draft
Budget to BOD
Present Recommended
Budget to BOD. Adopt
updated Strategic Plan
Late August
Incorporate
Changes based
on BOD feedback
March 2023
Mid-Year Budget
Review/ Adjustment
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Item 4
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Strategic Focus Areas: Impacts all five strategic focus areas
1. Revenues
Issue
PG&E's preliminary 2023 rate forecast,
issued 5/21, is based on outdated market
prices. Results in lower SVCE revenues
than likely the case.
Attempt to calibrate NewGen Model to
likely prices used by PG&E overstates
rates by N15-20%.
Staff Recommendation
Use latest market data in
NewGen model and
discount results (reduce
headroom) by 20% for
modeling error.
Implications/Reasons
Likely aligns revenues
closer to rates that PG&E
will update in October.
Better aligns revenues
with power supply costs
Primarily for budget
setting purposes.
Additional expenditures
based on headroom
projections will be made
by the Board likely in
December when actual
PG&E and PCIA rates are
known.
4 Healthy SVCE Margins Remain
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Item 4
PRESENTATION
Current Effective
Rate*
PG&E Gen Rate:
14.30 ¢/kWh
1% SVCE discountt
PG&E ERRA Forecast
2023 Rate**
PG&E Gen Rate:
12.62 ¢/kWh
* Source: PG&E June 2022 Updated Rates
Proposed
Methodology
(illustrative) ***
PG&E Gen Rate:
13.35 ¢/kWh
Di~ount TBD;
For illustration used 1%
** Source: PG&E 2022 ERRA Forecast (Weighted for SVCE Portfolio Load) 5 *** Using NewGen Model with 5/28/2022 Forward Curves and 20% haircut for PG&E Gen Rate •
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Item 4
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Strategic Focus Areas: Impacts all five strategic focus areas
2. Reserve
Targets
Issue
Ensure SVCE maintains sufficient
reserves to manage risks such as
those modeled under Stress Test
Scenario Two.
Prices collapse reducing revenues
and there's additional draw on
reserves from increase in financial
posting requirements to the
Provider of Last Resort (PG&E).
Use stress test 2 scenario
assumptions and update for Fiscal
Year period (Oct 2022 to Sep 2023) and
latest market data
Staff Recommendation
Target to keep reserves above 120
Days Cash On Hand (DCOH) for
FY 2022-2023 and FY 2023-2024
(under stress test scenario 2 assumptions)
Reset Upper Reserve Target such
that over the next 5 fiscal years
reserves do not fall below 90
DCOH
Implications/Reasons
FY 23 margins not
guaranteed given true-up
in 2024 for PCIA and
PG&E Gen rate
If adverse conditions
materialize, need 120
days to reshape strategy
and secure additional
liquidity
Increase upper reserve
target to take advantage
of good margin years to
manage risks over 5-year
period
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Item 4
PRESENTATION
© Reserve Target Methodology Illustration
Illustrative Numbers Based on Stress Test Scenario 2 Analysis* Reserve Targets
Minimum
Goal (Target)
Maximum (Upper Target)
Current
120
230
320
Derivation assuming stress test scenario 2 occurs:
Draw on reserves in 2024 would be $215 million
Illustrative
120
375
475
To end up with 120 DCOH in 2024, need to end 2023 with $310 million in reserves $310 million is equivalent to holding 375 DCOH
*Tobe updated with Budget assumptions and modeled over fiscal year as opposed to calendar year 7 •
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Strategic Focus Areas: Supplier of Choice; Work Electrification into SVCE's Value Prop. to Customers Issue Staff Recommendation Implications/Reasons -- -
3. Additional Continue to provide Add'I expenditure (above current 1% discount and Reaching new target reserve Expenditure competitively-priced and high- funding for programs) set such that reserves do not levels ensures SVCE can valued services to SVCE fall below new reserve target withstand adverse risk 1% discount over 12 customers scenarios
months N$5.2 million Target discount at 3%
1% discount over 9 Funds not needed to cover cost- 2% for all customers Keeping the discount rate to a months (Jan - Sep) of-service flow to customers via Additional 1% converted to $ bill credits to CARE reasonable level N$4 million lower SVCE rates (discount to & FERA customers Enables additional funding for comparable PG&E rates) valued customer programs
Monthly Average Bill Board can change the budgeted discount rate, such as decarbonization Savings of 1% Cost-of-service includes funds once actual PG&E rates are known, which is efforts Discount: needed to cover operations, Residential - expected to occur in late Dec 2022. Until then Ensures there's more N$0.70 meet reserve targets, and fund current 1% discount rate continues. organizational resiliency to Small Commercial decarbonization programs respond to risks over the 5-yr - N$2.50 planning horizon
Medium Revisit additional funding for programs during
Commercial - mid-year budget update in March given time N$30 Time SVCE rate change with needed to ramp up new initiatives to utilize PG&E rate change when Board existing authorized funds will have more certainty on
PG&E Gen and PCIA rates
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Item 4
PRESENTATION
4. Power
Supply
>90% of
Expenses
Strategic Focus Areas: Supplier of Choice, 24x7 Clean Energy Delivery Issue
Power prices are near record high levels
and market is very volatile
In addition to PG&E Gen Rate and PCIA
uncertainty, power price volatility makes
budget projections more uncertain
Currently hedged N70%
Remaining 30% exposed to volatile
market prices
Preliminary projections show load has not
recovered to pre-COVID level.
Pre-COVID: 3.95 TWh
Projection: 3.85TWH
Contract delays/renegotiations further add
uncertainty
Cost of carbon-free energy is high due to low
hydro conditions. PG&E allocations help
Resource Adequacy requirements are changing,
and costs are high
Staff Recommendation
Continue hedging to current ERM
(Energy Risk Management) targets
Staff conducting additional analyses of
hedging targets based on stress test
findings. Recommendations to be
developed later.
Continue with SVCE 100% clean policy
Purchasing remaining carbon free
allocations expected to cost about
$0.7 million to $6 million depending
on PG&E allocations.
Implications/Reasons
High hedge targets increase
risk to price collapse; does not
account for correlation of prices
to PCIA and PG&E Gen rate
Need further analysis before
changing policy given
challenges of uncertainty in
modeling PCIA and PG&E Gen
Rates
Maintain high customer value
proposition with 100% clean
energy and serve SVCE
mission
Furthers SVCE focus toward
24x7 clean energy goal
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Strategic Focus Area: Employer of Choice; Leverage Balance Sheet for Structured Financing
5. Additional
Costs
Issue
Growth in all areas of the
organization requires
additional staffing
Decarb Programs effort
increasing from N$2M/year to
N$20/year for the next 3 years
Going from hundreds of
rebates to thousands
Increased engagement with
local agencies
Increase employee salaries
for cost-of-adjustment and
merit/promotions
Enhance employee benefits
to remain competitive with
peer CCAs
Budget for BPO, legal costs,
consulting for structed
financing, and cybersecurity
enhancements
Staff Recommendation
Add 8 full time staff positions to the
current headcount of 39, bringing new
headcount level to 47 (Details in next slide)
4.6% adjustment for COLA
Based on 6-month rolling average of SF
Bay Area CPI
CEO discretion applied depending on
employee pay relative to market range,
performance, and date of hire
N$430k annual cost increase @ 39 FTE
Any additional increases for merit and
promotions based on CEO discretion
N$430k annual cost increase @ 39 FTE
Employee benefit enhancements (see
detailed slide) - N$300k annual cost increase
Other Additional Costs:
BPO - $1.375 million
Legal - $1.5 million
Structured Finance: $150k
Cybersecurity improvements: $250k
Implications/Reasons
Additional staff needed to:
Scale up programs team for double down
effort (more details in appendix)
Reduce high level of existing employee
workload
Advance strategic focus area goals
Create organization depth for business
continuity
Adjustments to employee compensation and
benefits needed to retain and attract talent
BPO, a key FY 21-22 strategic focus area to
mature operations to industry standards and
reduce operational risks
Sustained investments in cybersecurity
preparedness; FY22-23 efforts include virtual
CISO; Incident Response Tabletop exercises;
and a combined IT audit/ security
assessment, along with continued monitoring
and security tools. 10
• 39 full-time employee
• 1 on Maternity Leave
• 5 intern positions
• 1 currently filled
• 4 part-time employees
• Don Bray transitioned to part-time as Director
of Strategic Development
• 2 Climate Corps Fellows
• 2 long-term independent
consultants
Decarbonization Programs and Policy:
• Senior Programs Specialist – Community Programs – to support design and implementation of decarbonization programs
• Programs Specialist – Policy – to support state and local policy and government initiatives
• Additional Staff – Will need additional staff over coming 12 months as programs scale up and more clarity is gained on types of resources needed 4PRO
• Regulatory Analyst – to support engagement at CPUC, CAISO, CPUC • Power Data / Markets Analyst – to support increased data analysis from operational PPAs
ESCR
• Energy Services Specialists (2) – to support rate implementations and commercial / industrial offerings
• Outreach Specialist – to support outreach directly to member agencies and community groups
Finance & Admin
• Risk Control Analyst– to support middle office functions and administration of internal controls including implementation of BPO
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Item 4
PRESENTATION
© Staffing - Propose 8 Additional Full-time Positions
Current Staffing
Personnel Authority
CEO can approve job titles, salary ranges,
and org chart positions
Positions can be swapped / changed and
added within Board-approved budget
Additions will not exceed 10% of
authorized number shown in budget
Changes/ hires communicated in next
CEO report to Board
Per CEO personnel authority, these and existing positions may change to address evolving business needs.
11 Benefit Current Proposed Supporting Detail
Health Reimbursement
Account (HRA) Cap $6000 / year Cap @ $18k (3x annual) SVCE leading (3CE offers $3600 / year), but balances growing beyond useful limits.
Cash In Lieu of Health Benefits $250 / mo $600 / mo CCA range ($250 - $750) Monthly Premium
Contribution $1200 / mo $1500 / mo CCA range ($1200 - $1891) Phone / Internet Allowance $50 / mo (phone only) $120 / mo CCA range ($50 - $150) – combine into a single “remote technology” allowance
Paid Parental Leave (bonding) none
120 hours during 1st year
after birth Offered by MCE and PCE
Employee Participation in
Program Incentives none
Employees can participate
like customers.
Support employees with mission-aligned benefits. Limited to programs where SVCE does not have discretion on selecting participants or level of participation. For programs administered by SVCE, not eligible for first-come-first-serve programs that are available while funds last. Programs that are not practical/feasible to offer also not available.
Item 4
PRESENTATION
SVCE is proposing benefit increases to remain competitive with peer CCAs ~ 2
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Summary - Despite ongoing
uncertainty, the overall financial
picture looks good for FY22-23
Biggest risks include late-year adjustments to
PCIA / PG&E Gen Rate and significant volatility in . power prices Reserve targets increase to account for risks as
modeled in the stress test analyses
Keep 1% customer discount rate and revisit once
PG&E and PCIA rates are known
Power supply costs will increase, but margins
showing favorable improvement
Budget increases for operating expenses other
than power supply needed to advance strategic
focus areas including retaining and attracting
employees, reducing operational risks, and
enhancing operational efficiency.
Many Risks can Deplete Reserves
Market Prices
Reduced Revenues
via Higher PCIA and
Lower PG&E Rates;
Increased Power
Supply Expense
SUPPLY
Project delays;
PPAs Default or
Renegotiate for
Higher Prices
L&R ISSUES PAYMENTS LOAD LOSS CYBER·RISK
IRP, RPS, RA Customer Defaults Direct Access Hardware, Software, R f IP it· and Potential for and Training to combat e orm ena 1es, Expansion Ransomware and PCIA, POLR Phishing
RATE
Rate Increases due
to socialized wildfire
costs, Energy Price
Increases will
ultimately impact
usage and
electrification
13 Item 4
PRESENTATION
Budget Framework
at Exec Comm
August (tbd)
Present Draft
Budget to Finance
&Admin Comm
August 8
Present Draft
Budget to BOD
Present Recommended
Budget to BOD. Adopt
updated Strategic Plan
Late August
Incorporate
Changes based
on BOD feedback
March 2023
Mid-Year Budget
Review/ Adjustment
14 Item 4
PRESENTATION
Item 4
PRESENTATION
All are
important
Shining a
spotlight on
incremental
areas
Workplan will
include the
details on how
we will address
these and
other
areas/goals
(internal
document)
I
1. Employer of Choice
I
5. 24x7 clean energy
delivery
9. Expand focus on C&I
decarb/industrial load
2. Supplier of Choice
(electrification, rates,
DA customers, 24x7
CFE ... )
6. Operationalize
resources and
portfolio/asset
management in the
wholesale market to
achieve objectives
10. Expand/scale digital
and in-person
electrification
awareness and
education
3. Leverage Balance
Sheet for Structured
Financing
7. Ensure state and
federal policy
landscape preserve
CCA autonomy +
program policies
11. Execute on planned
programs to
demonstrate impacts
and influence policy
4. Efficient and
Effective Internal
Operations
8. Work electrification
into SVCE's value
proposition to
customers
12. Operationalize
equity into programs
16 ₵
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Item 4
PRESENTATION
© NewGen Projection vs PGE ERRA Forecast
Comparing 2023 PCIA / Gen Rates using 3/28 curves
Gen Rate ( /KWH)
PCIA ( /KWH)
Headroom ( /KWH)
* Source: MRW and NewGen 2.5
Proposed PGE
ERRA Rate
(3/28)
12.62 1.43
11.06 NewGen
Projection
(3/28)*
14.46 1.72
12.6 Variance
1.84 0.29
1.53 17
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Item 4
PRESENTATION
© 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
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
18 Item 4
PRESENTATION
Forward Price Levels elevated compared to history
GI
$200
$180
$160
$140
-~ $120 a..
~ $100
~ sso -en.
S60
S40
s20
so
Jan-18
On-Peak NPlS Historical and Simulated Monthly Prices
Jan-19 .Jan-20 Jan-21 Jan-22 Jan-23 .Jan-24 Jan-25 Jan-26 - NP-15 On-Peak ($/MWh) Historical - NP-15 On-Peak (S/MWh) MEAN :!!
·;:
a..
$300
$250
s200
~ $150
:!:
~ $100
$50
so
.Jan-18
Off-Peak NPlS Historical and Simulated Monthly Prices
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 .Jan-25
- NP-15 Off-Peak (S/MWh) Historical - NP-15 Off-Peak ($/MWh) MEAN Jan-26
19 Item 4
PRESENTATION
Under stress case scenario 2, ensure 120 DCOH over next two fiscal years Additional expenditure limited to amounts available above that required to maintain 120 DCOH under stress case scenario 2
Illustration:
FY 22-23 Ending Reserve Level Projection* : $350 million Less Reserve Target: $310 million (375 DCOH equates to N$310 million) Available for Add'I Expenditure: $40 million
*After covering all expenses including current level of funding for programs and customer discount at 1% discount. 20 Item 4
PRESENTATION
© Energy Risk Management Min/Max Bands
We hedge to manage market price risk. 70% of FY 23 load is hedged. However only 60% of Cal 23 is hedged. Front office team is working on hedging to target levels.
Period
Prompt Quarter (Q3 2021)
Balance of Year (July-December
2021)
Year 2 - 2022*
Year 3- 2023
Year 4- 2024
Year 5 - 2025
ERM Min
Tolerance -
LRB%
85%
80%
70%
55%
40%
0%
ERM Max
Tolerance
LRB%
105%
105%
90%
75%
60%
50%
Curren
tLRB
%
98%
99%
70%
58%
55%
55%
Target
LRB%
per Plan
100%
monthly
100%
monthly
100%
monthly
75%
annual
TBD
TBD
Net Open Position Tolerance and Positions
120%
100%
80%
60%
40%
20%
0%
2022 2023 2024 2025 2026
Base Tolerance Range -0-Contracted
21 Item 4
PRESENTATION
JCEO I
Chief I Director of I Chief Senior Board Clerk I Director of Internal Director of Operating Strategic Financial Government Executive Energy Operations Decarbonization Officer(COO) Development Officer and Affairs Assistant SeMcesand Program Programs and and Director ~------------------------------, Director of Manager CEO Community Manager Policy of Power I Administrative CEO Relations CEO DPP
Resources I Services ESCR
I 4PO I F&A I
I I I r I r I I I I r r I t r r 1 1 r r 1
Senior Power Senior Power Power Power Senior I Senior Risk I
Deputy Senior Technology Energy Energy Communications Interim Manager of Senior Data I
Deputy Director
Manager of Resources Manager of Resources Supply Supply Manager of Manager Director of Financial Services Services Services Manager Communications Community Analyst of Power Planner Power Manager Program Program Energy Policy F&A Administration Analyst Manager Lead Lead ESCR Manager Programs DPP Decarbonization Resources 4PRO Operations 4PRO Manager Manager and Services F&A F&A ESCR ESCR ESCR DPP Programs & Manager 4PRO 4PRO 4PRO Regulatory F&A Policy
4PRO Analysis DPP
4PRO
Wholesale Power Regulatory & Senior Senior Senior Senior i Data Senior Public Energy Settlements Compliance Quanbtative Management Marketing Programs Engineer Sector Markets & Manager Analyst Analyst Specialist Specialist DPP Services Manager Compliance 4PRO F&A F&A ESCR DPP Manager
4PRO Analyst DPP
4PRO
Associate Senior ~ Administrative Marketing Senior Energy Power Regulatory Assistant Specialist Programs Services Analyst Analyst F&A ESCR Specialist Specialist
4PRO 4PRO DPP DPP
Human Marketing ClimateCorps
Resources Specialist - Funding
Generalist ESCR and Finance
F&A Fellow
Full-Time DPP
Part-Time Interim Senior
Administrative Communications
VACANT Assistant Specialist
F&A ESCR
ClimateCorps
- Community
Outreach
Fellow
• Director
• Programs-focused team (3
staff)
• Policy and government
support team (3 staff)
• Data team (1 staff, hiring
another now)
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Item 4
PRESENTATION
© Decarb Programs and Policy Staffing - today
Current Staff Recent Re-org
Consolidated staff working to design and manage
programs
Emphasized tie-in for programs to support local
government initiatives and policy
Double Down
Direction from Board to increase efforts 2X over next
few years
Major scale-up in program scope and local policy
support
On top of ongoing and planned current efforts
23 • Need to go from
~$2M/year to ~20M/year
for next three years
• Need to go from hundreds
of rebates to thousands
• Need to meet more with
local agencies to explore
options and provide
support
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Item 4
PRESENTATION
© Decarb Programs and Policy Staffing - future
Significant Increase in
Efforts
More Staff Required
Build capacity for managing additional, larger
programs
Ensure time available for analysis, review and
optimizing efforts
Developing relationships is labor intensive
Tools Required
Simplify and streamline budgeting, tracking and
reporting
Facilitate increased volume of applications
24 •
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Item 4
PRESENTATION
© Decarb Programs and Policy Staffing - needs
Known
Data analysis support - further inform program approaches and respond to policy questions from cities (hiring Data Engineer now)
Program roll-out capacity - move planned but de-prioritized projects forward, add ability to handle new projects that arise, and increase ability to dig deeper into program details to improve the offerings we have (requesting Sr Programs Specialist) Government and policy support - allow for more concurrent analysis of requests from different cities, ramp up conversations sooner, and deeply participate in key state-level proceedings impacting decarbonization (requesting Programs Specialist) Currently Unknown - will evolve over coming 12 months
To reach necessary scale of programs, do we need more staff? Consultants? What is the level of uptake from our cities in policy experimentation and exploration? How much effort is required to implement new tools? Once in place, how much time do they free up? 25
Year COLA
FY17-18 3%
FY18-19 4%
FY19-20 4%
FY20-21 0%
FY21-22 5%
FY22-23 (4 mo
trailing CPI) –
proposed 4.8%
FY22-23 (6 mo
trailing CPI) -
proposed 4.6%
Item 4
PRESENTATION
Proposed 4.6% COLA to be based on SF Bay Area CPI; smoothed over trailing months Add'I Merit/promotional increases at CEO discretion
Cha.rt 1. Ov,er-the-y,e.ar percent chang,e in CPI-U, San Francisco-Oaklland-Hayward, CA, April 2.019-April 202:2
--Allt.ems
P'ercent change - - - - All t.e ms less food and e nergry 6_0 ,-----------------------------,
,,
3_0 1--.-------::------------------------,rr-' - --....--, o_o A--------------------------------- pr Jun Aug Oct Dec Fe b Apr Jun Aug Oct Dec Fe b Apr Jun Aug Oct Dec Fe b Apr 2019 2020 2021 2022'
Source: U_S_ Bureau of Labor Statistics_
Consumer Price Index, San Francisco Area - U.S. Bureau of Labor Statistics (bis.gov) 26 Headcount
Total Personnel
Cost COLA (4.6%) Merit (5% avg) Total Annual Budget
39 $8,535,000 $426,750 $426,750 $9,388,500
47 $10,286,000 $514,300 $514,300 $11,314,600
Item 4
PRESENTATION
© Budget Impact of COLA & Merit Increase Proposals
Proposed 4.6% COLA to be based on SF Bay Area CPI; smoothed over trailing months Merit increases at CEO discretion
27 Benefit Current Proposed Total Added Annual
Cost % of Personnel Budget Supporting Detail
Health
Reimbursement
Account (HRA) Cap
$6000 / year Cap @ $18k (3x
annual) $0 0% SVCE leading (3CE offers $3600 / year), but balances growing beyond useful limits.
Cash In Lieu of Health
Benefits $250 / mo $600 / mo $37,800 0.4% CCA range ($250 - $750) Monthly Premium
Contribution $1200 / mo $1500 / mo $136,800 1.6% CCA range ($1200 - $1891) Phone / Internet
Allowance
$50 / mo (phone
only) $120 / mo $39,480 0.5% CCA range ($50 - $150) – combine into a single “remote technology” allowance Paid Parental Leave
(bonding) none
120 hours during 1st
year after birth $84,000 1.0% Offered by MCE and PCE
Employee
Participation in
Program Incentives
none
Employees can
participate like
customers
Minor Impact 0%
Limited to programs where SVCE does not have discretion on selecting participants or level of participation. For programs administered by SVCE, not eligible for first-come-first-serve programs that are available while funds last. Programs that are not practical/feasible to offer also not available.
TOTAL $298,080 3.5%
Item 4
PRESENTATION
SVCE is proposing benefit increases to remain competitive with peer CCAs 21 HRA Balance # of FTEs
Above $18k 6
$10k - $18k 5
$5k - $10k 11
Under $5k 6
Item 4
PRESENTATION
© Staffing I Benefits - Fiscal Impacts
HRA Levels by# of FTEs
29 Since March 2020, the overall arrearage amounts have grown roughly 2.5x.
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
31+ Days
•
•
•
Item 4
PRESENTATION
SVCEs Arrearage Total for customers 31+ days late
31+ Days Date Amount
High 11/29/2021 $7.99M
Low 4/17/2020 $2.54M
Current 5/30/2022 $6.45M
Green arrow indicates receipt of
$1.3M in Federal CAPP funds
A second round of CAPP funding is
expected for late summer/fall 2022
Growth at red arrow indicates short-term growth in 31-60 day aging 30 bucket only - will likely decrease
Low Medium High
2022 Additional $660,895 $1,982,290 $3,964,579
2019 Ordinary Loss $414,580 $414,580 $414,580
$-
$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
SVCE 2022 Customer Debt Write-off Bookends
• 2019 Average 31+ Day Arrearage of $2.5M
yielded $415k in Write-offs (16.7% of total)
• 2022 Arrearage is $3.9M higher than 2019 after
receiving $1.3M in CAPP payments in March 2022
• Remaining $3.9M used as basis for the following
write-off scenarios:
$1,075,475
$2,396,869
$4,379,159
Item 4
PRESENTATION
f: [ [
Scenario Assumptions
Low 16.7% of $2.5M PLUS 16.7% of $3.9M-same as 'normal' year Medium 16.7% of $2.5M PLUS 50% of $3.9M
High 16.7% of $2.5M PLUS 100% of $3.9M
Data Current 5/30/2022 31
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 4
PRESENTATION
BPO is a key initiative under the strategic focus area: Internal Operations & Cyber Risk Management Auditable
Integrated
Data, systems, standards and
processes are audltable, documented,
and incorporate proper controls Automated
Integrated, single source of truth;
common assumptions/Inputs,
connections between functions
Engaged
Full staff engagement, "buy-Inn,
efficacy and efficiency; tools responsive
to needs; appropriate training;
embedded 1n culture
Adaptable
The system Is adaptable to
accommodate changes to business
requirements and technology
Processes, analyses and reporting
are automated, streamlined and
efficient
Secure
Data and systems are centralized
and secure; users have appropriate
levels of access
Right-Sized
The system 1s right-sized for our org
but scalable and extensible to
accommodate ant1c1pated needs
32 •
•
•
•
•
•
•
•
•
Item 4
PRESENTATION
Current: Phase 1 of the project focuses on Deal
Capture and Settlements
$500k year 1 license
$600k implementation
$275k contingency
Phase 2 will focus on portfolio and risk
management integrations
Phase 3 will be defined later but could include:
Customer Relationship Management Including
Program Design and Implementation
Meter Data Forecasting and Analysis
Financial Management and Modeling
ETRM & Regulatory Complianice Mgmt.
Integrated, Automated, and Auditable Business Process
Met•r Dlt•
Foru.t$tin1 • nd
A,..1.,.1,
Fin•rw::i•I
M• n•prnt:nt •nd
A«ounti"'I
Input SV!lems, A1rnlyticijl MQl!el.li &
Models & Flies fool.li I&\ r;:::::==========;-i
Users
Dashboards
Alerts, Metrics, & Reports
Including Compliance
33 Item 4
PRESENTATION
© BPO - Next Steps for Deal Capture and Settlements
System
June/July 2022 • Contract negotiation
• Seek BOD approval
Aug. & Sep. 2022 • Work commences
• Project timeline
• Vendor proposals indicate a 6-12-month implementation plan • Implementation complete
34 •
•
•
•
•
•
•
Bilateral Settlements
# of PPAs 13
# of Data Points (Price, Quantity, Amount) 3
# of Intervals per Hour 12
# of Hours per Day 24
# of Days per Month 31
Total Intervals of Data 348,192
CAISO Settlements
# of Relevant CAISO Charge Codes 20
# of Settlement Versions 5
Total Intervals of CAISO Data 34,819,200
Contract Costs Paid to Suppliers $25,000,000
Absolute Value of CAISO Settlements per Month $50,000,000 Total Dollars Settled per Month $75,000,000
Item 4
PRESENTATION
© Value of Deal Capture and Settlements
Scale of SVCE's Wholesale Portfolio
SVCE's wholesale portfolio is scheduled and settled at an hourly and sub-hourly basis
Monthly settlements with suppliers are payables of over $25M per month and based on over 348K rows of data
CAISO settlements have approximately 20 highly
relevant charge codes applicable to SVCE's portfolio and CAISO settles each trading day 5 times resulting in nearly 35M rows of data per month and over $SOM in total
costs and revenues
Sheer magnitude of portfolio requires a Deal Capture and Settlements system
Not manageable with spreadsheets (Excel limit is N1M rows) Significant operational risk if SVCE operates without a scalable system
System is basis for confidence in accuracy of SVCE's portfolio costs and revenues
35 FY 2021-22
DESCRIPTION
ADJUSTED
BUDGET
ENERGY REVENUES
Energy Sales 384,498
Green Prime 1,005
TOTAL ENERGY REVENUES 385,502
ENERGY EXPENSES
Power Supply 274,979
OPERATING MARGIN 110,523
OPERATING EXPENSES
Data Management 3,249
PG&E Fees 1,450
Salaries and Retirement 8,535
Professional Services 5,669
Marketing & Promotions 908
Notifications 131
Lease 525
General & Administrative 1,225
TOTAL OPERATING EXPENSES 21,693
OPERATING INCOME (LOSS) 88,831
NON-OPERATING REVENUES
Other Income 50
Interest Income 300
Grant Income 0
TOTAL NON-OPERATING REVENUES 350
NON-OPERATING EXPENSES
Financing 40
Interest 0
TOTAL NON-OPERATING EXPENSES 40
TOTAL NON-OPERATING INCOME
(EXPENSES) 310
CHANGE IN NET POSITION 89,141
CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER
Capital Outlay 150
Transfer to CRCR Fund 0
Transfer to Programs Fund 6,781
Nuclear Allocation 600
Double Down Programs Allocation 17,000
Customer Bill Relief 3,000
Other 0
TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER $27,531
BALANCE AVAILABLE FOR RESERVES $61,609
Item 4
PRESENTATION
36 • Subtitle
New SV Clean Energy
PowerPoint Template
Item 5
PRESENTATION
•
•
•
•
•
•
Item 5
PRESENTATION
FutureFit EV Charging Installation Incentive Program (CHIIP) provides up to $45k rebates for multifamily properties to install EV charging for residents on-site.
Objectives:
Increase EV charging access for multifamily residents
Encourage EV adoption among multifamily residents
Test managed Level 1 and Level 2 charging solutions
Target Audience: Multifamily properties
Phase 1: FutureFit Assist - EV Charging participants
•
•
•
Item 5
PRESENTATION
FutureFit Assist: EV Charging
Free technical assistance including site
assessment, design, contractor bid
support, connecting to incentives
Get Support Upgrading Your
Multi-Unit Property at No Cost
FutureFit Assist: EV Charging for Apartments and Other Multi-Family Housing FutureFit EV Charging Installation
Incentive Program (CHIIP)
Incentives build upon existing technical
assistance program
FutureFit Assist participants are eligible
for rebates during first phase of CHIIP
SVCE-funded Level 2 EV charging station installed at Murphy Ranch, an affordable housing property in Morgan Hill, CA (Source)
3 •
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•
•
Item 5
PRESENTATION
Up to $40k incentives (or up to 75% total cost) per
property for installation of Level 1 and Level 2
charging equipment, panel upgrades, pre-wiring,
and load management technology.
Higher incentive level (up to $45k) for affordable
housing, no cost share requirement
Phase 1: June 2022
Budget: $400k
Target: Applicants from 8+ multifamily sites
Phase 2: Q4 2022
Budget: +$1M
Expand eligibility to properties beyond
FutureFit Assist participants
Item 5
PRESENTATION
SVCE-funded Level 2 EV charging station installed at Murphy Ranch, an affordable housing property in Morgan Hill, CA (Source)
For more information, visit:
FutureFitAssist - EV Charging:
SVCleanEnergy.org/ev-charging-assist
FutureFit EV CHIIP:
SVCleanEnergy.org/multifamily-charging
5