Item 2
Shown During 2/24/23 EC Meeting
Active
$2.6M
N450
households
Development
Summer 2023
Hard to
estimate
Planning
Fall 2023
$11.5M
N1,500
households
Planning, will
return to BOD
Early 2024
N500
households 1
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 3
PRESENTATION
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Solar Wind Geothermal Natural Gas
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Peak Load Forecast w/ PRM
Item 3
PRESENTATION
California must ensure there is sufficient Capacity to meet Demand under strained conditions California Public Utilities Commission (CPUC) oversees RA Program
1. Determine Load Serving Entities (LSEs) obligation -- Peak Monthly Demand with a buffer or Planning Reserve Margin (PRM) of 16%
2. Determine technology effectiveness at delivering to peak load during stressed conditions SVCE's Monthly Forecasted System Resource
Adequacy Obligation
Month
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Technology Effectiveness Factors for every MW of
Capacity
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Month
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Item 3
PRESENTATION
SVCE must demonstrate compliance to the CPUC
Year-Ahead Compliance
Filings (''YARA'')
90% coverage for May-October
Filed end of October the year . pnor
For CY 2023 submitted
12/31/22 (extended)
SVCE is deficient in the 2023
YARA filing
Month-Ahead Compliance
Filings (''MARA'')
100% monthly coverage
Due 45 days before start of
compliance month
Ability to cure YARA
deficiencies, but still subject to
penalties
SVCE expects to be deficient in
some summer months in MARA 3
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Short-Term Gas RA Long-Term Clean RA
Item 3
PRESENTATION
© SVCE's 2023 Resource Adequacy Supply
Laddered
procurement strategy
Power Purchase
Agreements (PPAs)
Storage
Baseload resources
Solicitations
Bilateral Market
Broker Market
CPUC determines how much each
technology counts towards RA.
Solar and wind resources get a big
"haircut"
PPA Nameplate Capacity & RA Capacity (MW}
1000
900
800
700 30% of Solar+
600 Storage Nameplate
500 Capacity counts
towards for RA
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300
200
100
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Nameplate Capacity (MW) RA Capacity Adjusted (MW)
■ Geothermal ■ Wind Solar+ Storage ■ Long Duration Storage ;i: Planned Storage SVCE must rely heavily on baseload
resources, such as natural gas, to
meet RA obligations
SVCE's 2023 RA Capacity Mix
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Item 3
PRESENTATION
Since 2018 SVCE
has executed 18
PPAs
Several projects
facing delays
Globally, COVID, supply-chain and labor issues
Nationally, tariff circumvention and forced labor
concerns
Locally, interconnection, permitting and
transmission upgrades
Project economics and financing
SVCE has over 450 MW of Solar and 218 MW of
Storage subject to delays and/or termination in
2023
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Item 3
PRESENTATION
SVCE along with many other LSEs believe RA Supply in California is insufficient and do not expect the problems to improve in the immediate future.
Issues Affecting RA Construct -
CPUC's counting rules erode value of
renewable technologies
CPUC's regulatory framework creates
market uncertainty (e.g., changing the
PRM, import rules)
Timing of allocations of Central
Procurement Entity (CPE) procured
resources (local) have disrupted
LSE procurement efforts
Issues Affecting Supply-Out-of-state entities and non-CAISO entities are procuring RA supply
and/or not selling to California
Investor-owned utilities (IOUs) are
allowed to procure or retain
resources based on Effective
Summer PRM (20-22.5%)
Department of Water Resources
(DWR) is retaining capacity for the
Strategic Reliability Reserve
6 • Modify import requirements to be less onerous
• Modify CPE timeline and notification
• IOU effective PRM needs refinement to avoid effectively double penalizing CCAs • Be more proactive on interconnection and transmission problems causing delays in bringing on new resources
• Create more transparency in the market for buyers and sellers • Support sound efforts towards regionalization
• Develop a plan which considers fossil fuel plant retirement in the transition to a clean grid
Regulators must acknowledge the severely constrained market conditions in designing policy responses
Item 3
PRESENTATION
© Potential Solutions to Supply Issue
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Item 3
PRESENTATION
Based on YARA filing
SVCE is deficient in its
compliance
SVCE expects to be
deficient in MARA
filings
SVCE is subject to
YARA and MARA
penalties
SVCE is not alone in
its deficiency
Increased obligation due to changes in load
Delays in bringing PPAs on-line
Big Beau
Haircut on wind, solar and storage resources
CPE's failure to procure sufficient Local RA
and timing
Insufficient supply offered into SVCE's RFOs
Lack of award in other RFOs
SVCE continues to try to fill its
monthly RA obligations! 8
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Item 3
PRESENTATION
CPUC has a "no waiver for System RA" policy and imposes penalties based on YA and MA deficiencies
CPUC Penalties
Summer Deficiency Rate: $8.88/kW-month
= $8,880/MW-month
Winter Deficiency Rate: $4.44/kW-month
= $4,440/MW-month
CPUC point system
6 Points = 2x Deficiency Rate
11 Points = 3x Deficiency Rate
Points assessed based on
historical number of months
deficient and magnitude of
deficiency
Example:
LSE has 6 points
10 MW deficient in
Summer
Penalty: 10 MW x
(2x $8880) =
$177,600
CPUC enforces this Penalty structure to motivate LSEs to comply with RA requirements LSEs are penalized for past deficiencies based on multiplier effect CPUC does not take into consideration market conditions and/or individual LSE's efforts 9 •
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Item 3
PRESENTATION
Continue to try to fill monthly deficiencies for 2023
Issue RA RFOs for 2024 and beyond
Continue Clean RFOs with bundled energy and capacity
Work with developers and Governor's Go-Biz office to bring new projects on-line ASAP
Consider natural gas peaker plant with hybridized battery energy storage system to meet longer-term RA needs
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Item 3
PRESENTATION
Regulatory change is
needed at CPUC
Legislative fixes may
be the only way to
solve some of the
problems
Filing comments in CPUC's RA proceeding (SVCE and CalCCA) on issues currently being considered:
Setting the PRM and effective PRM
Resource eligibility for effective PRM
CPE showing timelines
Non-compliance and ability to serve new load
Penalties
Supporting CalCCA on advocacy efforts and discussions with CPUC staff
Assessing/supporting legislation that improves the
interconnection and transmission enhancement process as well as regionalization efforts
Tracking the CA Budget Bill and educating legislators on complexity of RA market and effects of expanding penalties 11 •
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Item 3
PRESENTATION
CPUC's RA framework and Integrated Resource Plan process need to work together to ensure resource sufficiency for grid reliability IOU bundled and unbundled customers should be treated fairly Increasing or augmenting penalties will not get more resources built Market dynamics and procurement efforts should be considered before penalizing an LSE
Significant costs resulting from RA market dynamics along with penalties will fall on all customers' shoulders
12 • Subtitle
New SV Clean Energy
PowerPoint Template
Item 4
PRESENTATION
Item 4
PRESENTATION
2 eVl
BUILDING EV INFRASTRUCTURE
Item 4
PRESENTATION
CAL
eVIP
BUILDING EV INFRASTRUCTURE
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Item 4
PRESENTATION
Goal: Install N1,100 L2 and N85 DCFC EV chargers
How
BUILDING EV INFRASTRUCTURE
Objectives: install DC Fast Chargers (DCFCs) and L2 chargers Target Audience: public agencies, property owners, EVSE providers, non-profits, schools Sites: public parking lots and garages, multifamily buildings, retail/commercial sites Timeline: 2020 - ongoing
SVCE territory - total $12M:
$6M from CEC for DCFC
$6M match from SVCE for L2 chargers
$55.2M across Peninsula-Silicon Valley Project
& PAVLO ALTO (i) PENINSULA • UTILITIES .. CLEAN ENERGY
SANJOSE ...... \ I ; _,,,, f'/j' SILICON VALLEY
CLEAN ENERGY ~CLEAN ENERGY
A Program of the City of San Jose
,, S1L1CON
VALLEY
POWER. CITY OF SANTA CLARA
4 Item 4
PRESENTATION
Incentives offered
~ $4.5K-6K per L2
connector, up to
75% project cost
$50K-80K per 11 DCFC, up to 75%
project cost
Adders for
disadvantaged and
/ow-income sites
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C
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LL
$6M
$280K
$4M
$2M
Level2 DCFC
■ Reserved . . (To be rele
ased
■ Wa1tl1sted in future years)
■ Funds Issued Being Processed 5
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Item 4
PRESENTATION
Adder for multifamily properties
Joint partnership across counties
First-come, first served
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Item 4
PRESENTATION
Continue to process applications
DCFC funding oversubscribed, L2 still
available
Planning to open SVCE's $6M to allow L2
or DCFC in March
Program details at:
https://svcleanenergy.org/calevip/
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