1 • Subtitle
New SV Clean Energy
PowerPoint Template
ORR Amendment to
Expand Executive
Committee Membership
Executive Committee
March 24, 2023
Item 3
PRESENTATION
2 SVCE Executive Committee
Membership
and Purpose
• Appointed Annually in January of each year
• Consists of five primary Board members
• Members serve one-year terms, with no
limit on number of terms
• Address policy, operational and
organizational matters and perform such
other responsibilities, tasks or activities as
delegated to it by the Board
Item 3
PRESENTATION
3 Amendment Request
Amend Operating Rules and Regulations language to reflect the Executive Committee can consist of up to six Board members
• Allows flexibility for the Board to elect six members instead of limiting to five
• SVCE’s other committees allow up to six members
• Adds an additional seat for another member of the Board to participate Item 3
PRESENTATION
4 • First adopted in 2016
• Amended previously to
include/revise various
administrative matters
• Last amended in January 2021
• Requires a multi-step process for
amendment approval:
• 1. Proposal at regular board meeting
• 2. Action at next or later regular meeting of
the Board for final adoption
• Proposed amendment must be distributed with a
written notice of the amendment at least 10 days
prior to the date of the meeting at which final action
on amendment is to be taken
SVCE’s Operating Rules and Regulations
Item 3
PRESENTATION
rA, s1L1coN VALLEY ~ CLEAN ENERGY
SILICON VALLEY CLEA!~ ENERGY AUTHORITY
OPERATING RULES AND REGULATIONS
ARTICLE I
FORMATION
The Silicon Valley Clean Energy Authority (the "Authority") was established on March 31, 2lll.6 pursuant to the execution of the Silicon Valley Clean Energy Authority Joint Powers Agreement (the "Agreement") by the County of Santa Clara, the Cities of Campbell, Cupertino, Gilroy, Los Altos, Monte Sereno, Morgan Hill, Mountain View, Saratoga and Sunnyvale and the Towns of Los Altos Hills and Los Gatos. The members of the Authority are referred to as Party or Parties in these Operating Rules and Regulations. As defined by the Agreement, these Operating Rules and Regulations consist of mies, regulations, policies, bylaws and procedures governing the operation of the Authority.
ARTICLE II
PURPOSES
The Authority is formed to study, promote, develop, conduct, operate, and manage energy and energy-related climate change programs, and to exercise all other powers necessary and incidental to accomplishing this purpose. These programs include but are not limited to the establishment of a Community Choice Aggregation Program known as Silicon Valley Clean Energy in accordance with the terms of the Agreement.
ARTICLE III
BOARD OF DIRECTORS
Section I. Appointment of Chair and Vice-Chair. The Board shall appoint from among themselves by majority vote a Chair and Vice-Chair. The Chair and Vice-Chair shall be appointed for one-year terms expiring at the annual meeting held in January of each year. As provided by the Agreement, there are no limits on the number of terms that a Board member may se1ve as Chair or Vice-Chair.
Section 2. Appointment of Secretary and Treasurer. The Secretary and Treasurer shall be appointed by the Board for one-year terms expiring at the annual meeting held in January of each year.
Section 3. Extension of Term of Office. If for any reason, the appointment of a Board officer is not made in Janua1y of any year, such officer shall continue to serve in his or her position until an appointment is made at a meeting of the Board.
Section 4. Removal of Officers. An officer of the board shall be subject to removal as an officer of the board at any time for any reason by a majority vote of the entire Board. I 12660-0002\I 961 754v2.doc
Amcndcd:lll.3.L2.1
5 Proposed ORR Change
Executive Committee. There shall be an Executive Committee consisting of up to six Board members. The duties of the Executive Committee shall be to review and provide advice to the Chief Executive Officer and the entire Board on policy, operational and organizational matters and perform such other responsibilities, tasks or activities as delegated to it by the Board.
Article V, Section 2
Item 3
PRESENTATION
6 Next Steps
Should the Executive Committee approve staff’s recommendation, next steps would be:
1. Propose this amendment to the Board of Directors at the April 12, 2023 Board of Directors Meeting
2. Agendize the item on Consent at the May 10, 2023 Board of Directors meeting (will provide written notice of amendment 10 days prior)
3. Agendize an action item at the May 10, 2023 meeting to appoint a sixth member to the 2023 Executive Committee
Item 3
PRESENTATION
7 Recommendation
Executive Committee recommend the SVCE Board of Directors approve the proposed amendment to SVCE’s Operating Rules and Regulations (ORR) to expand Executive Committee membership to up to six Board members.
Item 3
PRESENTATION
8 Thank you
Item 3
PRESENTATION
1 Middle River Power – Hanford Hybrid
Natural Gas Power Plant with New Battery
Energy Storage System
SVCE Executive Committee Meeting
March 24, 2023
Item 4
PRESENTATION
2 Request
Executive Committee recommend to Board:
1. Delegation of authority to CEO to finalize negotiations and execute a Power Purchase Agreement with Middle River Power for the Hanford Hybrid Natural Gas Power Plant to meet Resource Adequacy and Mid-term Reliability Procurement Order Requirements;
2. Approve an exception to Board-approved Energy Risk Management Policy to manage cost associated with the Hanford PPA; and
3. Direct staff to develop a proposal to establish a fund and guidelines to mitigate emissions associated with the Hanford PPA
Item 4
PRESENTATION
3 Overview
1. California’s Clean Goals, Reliability Challenges and Requirements
2. SVCE’s Energy and Capacity Portfolio, Procurement and Progress Efforts
3. Middle River Power’s Hanford Hybrid Natural Gas Power Plant with Battery Energy Storage System
4. Recommendation
January 2023
Board discussion on
California and SVCE’s
Clean Energy Goals
and Progress
February 2023
Board discussion on
Reliability and need
for natural gas
capacity
February 2023
Executive Committee
discussion on
Resource Adequacy
Program and
Challenges
Item 4
PRESENTATION
4 California’s Power Fleet in Transition
To achieve aggressive greenhouse gas reduction goals, California must transition from a fossil based fleet to a clean source of electricity generation.
Primarily Natural Gas, Coal
Hydro and Nuclear
Natural Gas, Hydro,
Nuclear, Solar, Wind,
Geothermal and limited
Storage
Solar, Wind, Geothermal,
Hydro, Storage, Demand
Response, Off-shore Wind
& New Technologies. Less
natural gas and no nuclear.
Past Present Future
Item 4
PRESENTATION
5 September 6, 2022 – Gas Keeps Lights on in
California
Existing fossil gas generation continues to play a critical role in grid reliability on September 6, 2022
• The heatwave in September
2022, stressed the grid
• Load peaked in
evening hours when
Renewables ramped down
• Demand Response played a
critical role in avoiding rolling
blackouts
• Back-up generators were
deployed
Climate change, droughts, changes in load and resources have put a focus on how we will meet Reliability
Source: 2022 Scoping Plan for Achieving
Carbon Neutrality
Item 4
PRESENTATION
2.5,000
2.0,000
I 15,000
>
Q. §" 10,000
Ul
>
~ ru 5,000
C
w
0 -5,000
0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
;..; i-J ~ ~ u-i u::i r:.:: co
- Re11ewables
- Imports
0 0 0 0 0
0 0 0 0 0
cri 0 ;..; r-.i ~ ..... .-t ..... .-t
- Fossil Gas
Batteries
0 0 0
0 0 0
~ u-i ..:0
,-,I ..... .-.I
0 0 0 0 0 0 0
0 0 0 0 0 0 0
r:-.:. cici cri 0 ,:..i r-.i ~ ..... .-t .-.I N N N N
·--Large hydro
--Nuclear and Coal
0 0
0 6
Clean Energy Generation Varies
Baseload and Quick Start Resources such as Natural Gas and Geothermal provide 24/7 reliability.
88%
90%
92%
94%
96%
98%
100%
102%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 MW Annual Average Hourly Profiles by Technology
Natural Gas Geothermal
Item 4
PRESENTATION
-
7 Clean Energy Generation Varies
Future Grid will increase
reliance on optimal resource
pairings such as solar and
battery storage
0 0.1
0.2 0.3
0.4 0.5
0.6 0.7
0.8 0.9
1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 MW Annual Average Hourly Profiles by Technology
Solar Wind Solar + Storage
Item 4
PRESENTATION
8 Resource Adequacy (RA) Program Overview
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
2. Determine technology effectiveness
3. SVCE's RA Capacity Requirement is ~850 MWs
4. Calendar year 2023, SVCE expects to be deficient for a portion of its RA obligations and will likely face penalties
1. Changes to obligation
2. Changes to technology effectiveness
3. Scarcity in market
Item 4
PRESENTATION
9 SVCE's PPAs and their RA Capacity
SVCE has over 900 MWs of Capacity from renewables that qualifies for about 408 MWs of RA Capacity
To meet RA requirements with
Clean capacity an additional
2000 to 2500 MW Nameplate
Capacity of Solar + Storage
resources are needed
Typical lead time to build new
renewable resources is 3-5
years
Changes to CPUC’s RA
Program will continue to erode
counting capacity for
intermittent resources and
require more nameplate
capacity
30% of Solar +
Storage Nameplate
Capacity counts
towards for RA
Item 4
PRESENTATION
1000
900
800
700
600
500
400
300
200
100
0 PPA Nameplate Capacity & RA Capacity (MW)
Nameplate Capacity (MW) RA Capacity Adjusted (MW)
■ Geothermal ■ Wind Solar+ Storage ■ Long Duration Storage ~ Planned Storage 10 SVCE's Energy & Capacity Portfolio
Estimated for 2025
GWhs Percent of Total
Retail Sales
Percent of Total RA
Requirement
Biomass 175 4.4% 2%
Geothermal 507 12.8% 7%
Solar 1,292 32.8% 1%
Wind 584 14.8% 2%
Large Hydroelectric 1,375 35.2% 0%
Battery Storage 0 0% 30%
Natural Gas 0 0% 58%
Total 3,933 100% 100%
• 100% of Energy needs are met
by Clean resources – Renewable
Portfolio Standard (RPS) and
carbon-free such as Large Hydro
• By 2025 SVCE’s PPAs achieve
65% RPS, 18% above
California’s RPS; but only meet
12% of RA requirements
• Storage capacity will meet 30% of
RA Requirement but no energy
• Capacity to meet RA and
reliability is met primarily through
natural gas
Item 4
PRESENTATION
11 SVCE’s Reliability Challenge
Status Quo:
• 900 MWs of renewable projects under long-term contract to meet clean energy • Renewable and storage capacity effectiveness is expected to decrease over time • Natural gas power plants will continue to be needed for reliability over the next ten to 20 years • SVCE relies primarily on short-term, natural gas RA-only capacity contracts to meet RA requirements, but market is tightening and cost are increasing Adapt:
• SVCE needs to layer in longer-term gas RA purchases to reduce sensitivities to price, supply, and compliance risk, while still planning for a clean energy transition.
Item 4
PRESENTATION
12 Possible Reliability Solutions
As we transition to a Clean grid, SVCE must look at all options to meet Resource Adequacy and reliability requirements
• Clean Alternatives
• New storage, stand-alone and
paired with solar
• Out-of-state wind
• New and/or existing baseload
renewables such as
geothermal and biomass
• Distributed Energy Resources
and Demand Response
including Virtual Power Plants
• New Technologies
• Other Alternatives
• Long-term RA-only capacity
contracts
• Natural Gas Peaker Power
Plant with or without Hybridized
Battery Energy Storage System
(BESS)
Item 4
PRESENTATION
13 Clean Alternative Challenges
Additionally, SVCE faces regulatory uncertainty around future procurement orders and/or central procurement of clean capacity.
Technology Strategy Challenges
New storage, stand-alone and paired with solar and/or wind • Long-lead time to build (three to five years); • Large development risk associated with supply chain, labor and interconnection
• Could result in sub-optimal portfolio if too much storage is added Out-of-state wind • Lead time
• Development risk
• Transmission to bring wind into California is expensive Existing and/or new geothermal, biomass or other clean baseload renewable capacity
• Scarce resource
• Lead time
• Development risk
• Most likely to be built outside of CAISO requiring transmission.
Distributed Energy Resources and Demand Response including Virtual Power Plants
• Potential amount of capacity is limited
• Rules for counting towards RA are in-flux
• Long lead time
SVCE needs near term solutions to meet reliability requirements Item 4
PRESENTATION
14 Hanford Hybrid Natural Gas Power Plant with Battery
Energy Storage System –Alternative
Middle River Power’s (MRP) Hanford Natural Gas Peaker Power Plant (“Hanford”) with grid-charging BESS Over time, the BESS will compete for transmission capacity at the site and the Natural Gas Power Plant (“Peaking Gas Unit”) will operate less and less, thus reducing emissions at the Hanford project location Item 4
PRESENTATION
Reliability
99,.4 MWs ,, .. -----,
Prima 111I ly run for
grid re,111 ia1 bi I ity 9---------i
QUJicker startup - can
g1enerate with in
10 minutes of bei'ng idlle
Peaking
Gas Unit
Battery
Storage
Emissions Reduction
---- 131.4 M'Ws/131.4 MWhs
Will slhi'ft energy to when
1----. it is needed once per day
Golocated : Wi llll
econom1icalllly displa,ce
pec1ker energy with g1rid
char,ged energy
15 Hanford Project Attributes & Benefits
Seller: Middle River Power
Project:
1. Existing 99.4 MW Peaking
Natural Gas Power Plant w/
Energy Toll and RA Capacity
2. New BESS 131.4 MW one-hour
Lithium-ion
Price:
• RA Capacity fixed cost per month
• Energy Toll fixed cost per month
plus Variable Operation and
Maintenance adder
• Expected cost: $280,000,000
Expected Commercial Operation
Date: April 2024
Term: 12 Years
Location: Fresno, CA
Resource Adequacy Capacity – 115.4 MW
• 99.4 MW from Existing Peaker Plant
• 16 MW from 131.4 MW of new BESS
Mid-term Reliability Procurement – 16 MW
• From the new BESS
Energy Toll
• Dispatchable energy from existing Peaker plant to be
used during constrained market conditions for reliability and under limited operating constraints
Item 4
PRESENTATION
16 Hanford Portfolio Impacts & Benefits
Estimated 2025
GWhs Percent of Total Retail
Sales
Percent of Total RA
Requirement
Biomass 175 4.4% 2%
Geothermal 507 11.2% 7%
Solar 1,292 11.4% 1%
Wind 584 21.6% 2%
Large Hydroelectric 1,375 35% 0%
Battery Storage 0 0% 32%
Natural Gas 0 0% 40%
Hanford – Natural Gas Est. 8 .2% 16%
Total 3,933 100% 100%
Hanford will contribute
significantly to SVCE's reliability
and RA requirements:
• 131.4 MW of RA capacity for
12 years. ~16% of needs
Hanford will only generate energy
when needed for grid stability.
Estimated ~ 0.2% of load.
SVCE procures enough clean
energy to meet it retail sales plus
losses so that emissions
associated with Hanford will be
insignificant on the Power Content
Label
Item 4
PRESENTATION
17 Environmental Impacts
• Expected Annual
Energy: 8,000 MWh
or 0.2% of SVCE’s
load
• Emissions: 0.6612
MT CO2e/MWh x
8000 MWhs
= 5,289.6 MT CO2e
per year
• Other types of
emissions are
generated at the site
• BESS will compete with gas power plant
• GHG emissions are expected to decrease over time
• Consider establishing a fund to mitigate impacts
• Fund details to be discussed with Board and other
stakeholders
Item 4
PRESENTATION
18 Middle River ERM Policy Exception
• ERM Policy allows for tolling agreements
• Not explicit for gas tolling agreements
• Staff will seek Board approval of the Hanford
PPA with the gas toll
• An exception to the ERM Policy is needed to
enable any gas transactions needed to
manage the risks from the Hanford PPA
Board-approved Energy Risk
Management (ERM) Policy
adopted Nov 2021, section 6.3
Item 4
PRESENTATION
6.,3 Approved Transactions
Authorized transactions which SVCE authorized
traders can utilize must be consistent withthis Policy.
Transactions must be directly rellated to the
procurement and/ or administrationof:
• electric energy,
• reserve capacity,
• transmission and distribution service,
• anciillary services,
• congestion revenue ri,ghts (CRRs),
• renev.rable energy,
• renewable energy certificates (RECs ),
• basi s transactions,
• ,-,~---- issiions allowances,
• ~-~~--~' and
• bilateral purchases of ,energy products.
19 SVCE’s Reliability Near-term Solution
• The Hanford Hybrid Natural Gas Power Plant with BESS is a sustainable and affordable strategy to meet reliability.
• The Hanford PPA is primarily being sought for Resource Adequacy Capacity • The new BESS helps meet Mid-term Reliability Procurement Order • Emissions are low and will decrease over time with the inclusion of the BESS • The project has little development risk
• Relative to alternative Clean Capacity resources, Hanford is competitively priced and adds portfolio value
• The term of the Hanford PPA aligns with California’s transition to a Clean grid Item 4
PRESENTATION
20 Request from Executive Committee
Recommend the Board:
1. Delegate Authority to CEO to finalize and execute a Power Purchase Agreement with Middle River Power for its Hybrid Natural Gas Power Plant with Battery Energy Storage System, with the following parameters:
• 99.4 MW of Resource Adequacy Capacity from Natural Gas Power Plant • New 131.4 MW, one-hour BESS at site for an additional 16 MW of Resource Adequacy and Mid-term Reliability Procurement Order compliant capacity
• Option to utilize toll energy under certain conditions to meet reliability • 12-year term with an expected on-line date of April 2024 • Not to exceed dollar amount: $280,000,000
2. Approve exception to the Energy Risk Management Policy to enable gas transactions needed to manage Hanford PPA
3. Direct staff to develop a policy and/or guidelines to set aside funds to be used for programs and/or projects to mitigate emissions associated with energy produced by the Hanford project resulting from the Hanford PPA
Item 4
PRESENTATION
21 • Back up
Item 4
PRESENTATION
22 Hanford – Tolling Agreement
Like a car lease, the purchaser, in this case SVCE, will pay a fixed price to the seller to use the facility and generate electricity. • SVCE will be responsible for procuring natural gas fuel, measured in Metric Million British Thermal Units or “MMBtus”, for the power plant to operate.
• Hanford has an efficiency rating for converting natural gas to electricity, known as a “Heat Rate” that will be used as the basis for determining economic dispatch
• Hanford’s Heat Rate is 10.2 MMBtus per MWh
• Because Hanford is a peaking facility, it will only generate electricity when market revenues exceed its cost to generate
• Hanford has a limit of 2000 hours that it can run each year • SVCE may need to execute forward gas contracts to lock in price SVCE Pays a Fixed
Monthly Price to use the
Facility
SVCE procures Daily
Natural Gas and delivers
via pipeline it to the
facility
SVCE submits offers to
the CAISO Market and
generates electricity
Item 4
PRESENTATION
1 Rio Bravo Fresno Biomass
SVCE Executive Committee Meeting
March 24, 2023
Item 5
PRESENTATION
2 Request and Justification
Recommend Board delegate authority to CEO to execute a short-term power purchase agreement with Rio Bravo Fresno Biomass energy, with the following parameters:
• Capacity: 25 megawatts
• Est. Annual Generation: 175,000 MWhs
• Price: fixed dollar per megawatt hour
• Term: 2.75 years, May 1, 2023 through December 31, 2025 • Not-to-exceed dollar amount: $60,000,000
Rio Bravo Fresno Biomass is needed to meet Renewable Portfolio Standard and Resource Adequacy requirements for calendar years 2023, 2024 and 2025 Rio Bravo Fresno is not an enabled counterparty with SVCE and therefore the Board-approval or delegation of authority to the CEO is necessary.
Item 5
PRESENTATION
3 Rio Bravo Fresno Biomass
Capacity: 25 megawatts
Est. Annual Generation: 175,000
MWhs
Term: 2.75 years, May 1, 2023 through
December 31, 2025
Renewable Portfolio Standard (RPS)
PCC1: 4 to 5% per year
Resource Adequacy Capacity: 25 MW,
24-hour RA which will be effective in
meeting RA reform in 2025
Background
Rio Bravo Fresno Biomass is located in California’s agricultural region in the community of Malaga. RBF was built in 1988
Fuel Source
Agricultural pruning’s and urban wood
Technology Used
The circulating fluidized bed (CFB) boiler technology used allows for a more complete and efficient burn of the biomass, thus air pollutants are dramatically reduced.
Emissions Factor: .04
MTCO2e/MWh (equates to
about 1lb of Emissions on
SVCE’s Power Content Label)
Item 5
PRESENTATION
4 Request and Next Steps
Recommend Board delegate authority to CEO to execute a short-term power purchase agreement (PPA) with Rio Bravo Fresno Biomass energy, with the following parameters:
• Capacity: 25 megawatts
• Est. Annual Generation: 175,000 MWhs
• Price: fixed dollar per megawatt hour
• Term: 2.75 years, May 1, 2023, through December 31, 2025 • Not-to-exceed dollar amount: $60,000,000
Next Steps:
• Seek Board approval on April 12, 2023
• Finalize and execute PPA
• Provide fully executed PPA to Board
Item 5
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Electrification Discount
Design – Executive
Committee Discussion
March 24th, 2023
Item 6
PRESENTATION
AMENDED
Agenda
1. Background
2. Discount Design
3. Takeaways & Discussion
Item 6
PRESENTATION
AMENDED
3 1. Background
Item 6
PRESENTATION
AMENDED
4 Today we’re exploring updating our residential
electrification discount (E -ELEC rate)
The Board recently
approved $9.5M to
fund a multi -year
discount to the E -
ELEC rate
• PG&E’s new E-ELEC (“Electric Home”) rate is
available to residential customers with a heat pump,
HPWH, EV, and/or ESS
• E-ELEC is currently unavailable to NEM customers
• A flat 10% discount is currently in place for SVCE’s
E-ELEC residential rate
• Staff informed Board we would reevaluate discount
design in the coming months
• For equitable access to electrification , the Board
simultaneously voted to approve $9.5M in additional
funding for a multifamily direct -install program
Item 6
PRESENTATION
AMENDED
There is opportunity to better align the discount
with SVCE’s decarbonization mission
The electrification discount was established to support electrification by reducing on -bill impacts of replacing gas appliances.
However…
We have the opportunity to go further by structuring our discount to promote beneficial electrification :
• Lower customer energy bills
• Reduce grid stress
• Better align electricity usage with solar and wind generation Item 6
PRESENTATION
AMENDED
6 We’ve been working on the discount design update for
several months, and plan to bring it to the BOD in April 12/14/2022:
BOD
approves E-ELEC
discount
1/1/2023:
10% flat
discount
applied to
SVCE’s E-ELEC rate
2/13: 1st Staff
Design
Review
Meeting
3/13: 2nd
Staff Design
Review
Meeting
3/24 :
Executive
Committee
discussion
4/12:
Present to
Board of
Directors for
approval
Item 6
PRESENTATION
AMENDED
7 2. Discount Design
Item 6
PRESENTATION
AMENDED
8 We evaluated 4 different discount approaches
based around TOU periods
1. Flat 10% – discount applied equally across all TOU periods
2. TOU Standard – discount applied only to Off-Peak period
3. TOU Plus – increased Peak rate, deeper discount for Off-Peak
4. TOU Super – even more increased Peak, even deeper Off-Peak discount TOU = Time-of-Use
Item 6
PRESENTATION
AMENDED
12a.m. OFF-PEAK 3 p.m. 4 p.m. PEAK 9 p.m. 12a.m.
-- PARTIAL-PEAK ----
9 Beneficial Electrification is supported by the cost
difference between Peak and Off -Peak periods
Flat 10% TOU Std TOU Plus TOU Super
Winter
Off-Peak -10% -20% -25% -30%
Partial-Peak -10% 0% 0% 0%
Peak -10% 0% +5% +10%
Summer
Off-Peak -10% -20% -25% -30%
Partial-Peak -10% 0% 0% 0%
Peak -10% 0% +5% +10%
SVCE’s E-ELEC Generation Discount Rates per TOU Period
Item 6
PRESENTATION
AMENDED
10 We evaluated three different customer profiles
to gauge the impact of discounts
Average Customer Sure, I care about my
energy bills, but I’m busy.
I’ve got all my appliances
programmed to minimize my
carbon footprint, it’s awesome!
Since when is it a crime
to love late-afternoon air
conditioning? Savvy Customer
Heavy Peaker
= Off-Peak = Partial-Peak = Peak
55%
20%
25%
70%
18%
12%
40%
25%
35%
90% of
SVCE
Customers
5% of SVCE
Customers 5% of SVCE
Customers
Item 6
PRESENTATION
AMENDED
■ ■ ■
11 $0
$50
$100
$150
$200
$250
Average Customer Savvy Customer Heavy Peaker
Annual Customer Savings
Annual Customer Generation Discount vs PG&E's E-ELEC
Flat 10% TOU Standard TOU Plus TOU Super
3%
The average customer could ~2x their discount
through behavioral changes on TOU Super
= Off-Peak
= Partial-Peak
= Peak
% Annual
Energy Usage
by TOU-period
55%
20%
25%
70%
18%
12%
40%
25%
35%
10%
10%
10%
9% 9% 10%
12%
15%
17%
5%
4%
Generation
discount
relative to
PG&E
90% of SVCE
Customers 5% of SVCE
Customers
5% of SVCE
Customers
Item 6
PRESENTATION
AMENDED
[~ ....... ] [ ]
■ ■ ■ ■
12 Customer Journey – Electrifying the typical Single-Family Home Item 6
PRESENTATION
AMENDED
MEET AVERAGE CUSTOMER
Average Customer pays -$270/month for gas
& electricity.
R.ETR.OFITS FUR.NACE TO HEAT PUMP
Average Customer saves an extra $11/month
($32/month total savings) after retrofitting
their furnace to heat pump.
R.ETR.OFITS TO HPWH
Average Customer saves an average
$6/month after retrofitting their heat pump
water heater (HPWH).
SHIFTS ENERGY USAGE OFF-PEAK
Average Customer saves an extra $16/month
($48/month total savings) after shifting their
energy usage off-peak.
ENROLLS IN E-ELEC RATE
Average Customer saves an extra $15/month
($21/month total savings) after enrolling in
E-ELEC rat e with SVCE's TOU Discount.
REDUCE YOUR. BILLS, NOT YOUR. LIFESTYLE
Be like Average Customer and save
$48/month while still enjoying the same level
of comfort and convenience at home.
13 3. Takeaways & Discussion
Item 6
PRESENTATION
AMENDED
14 Summary of Key Takeaways
• We can use our discount to encourage beneficial electrification to reduce customer bills and align with our decarb mission • A flat discount structure promotes the opposite – the more Peak energy used, the bigger the reward
• This is a low/no risk opportunity to pilot a customized rate that promotes behavioral changes – the more a customer shifts their usage, the bigger their discount becomes
• We can leverage findings to inform future custom rates that support affordable electrification for our customers
Item 6
PRESENTATION
AMENDED
15 Staff Recommendation & Open Items
Staff Recommendation to BOD:
• Update the E-ELEC discount to reflect the “TOU Super” design structure Open Items for Today’s Discussion:
1. Would you support the staff recommendation to adopt the “TOU Super” discount design?
2. Would you support the decision not to include bill-protection? • Very unlikely a customer would pay more than with PG&E (8 out of 240,000)
3. Should we guarantee the discount until 2027 to align with BAAQMD’s zero-NOx appliance rulemaking? Item 6
PRESENTATION
AMENDED
16 APPENDIX SLIDES
Item 6
PRESENTATION
AMENDED
17 What is E-ELEC?
• E-ELEC (“Electric Home”) is a non-tiered, opt -in residential rate schedule • Intended to incentivize residential electrification by lowering volumetric charges on transmission and distribution (T&D) rate components • Includes a fixed monthly charge of $15 to recover PG&E’s fixed costs (meter reading, maintenance, service, O&M, etc.)
• Residential customers are eligible if the customer uses electricity for any of the following:
• Heat pump space and/or water heating,
• EV Charging, or
• Energy storage charging
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18 Current E-ELEC Generation Rates
10%
10%
10%
10%
10%
10%
Discount
Level
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sv,c:1: Rate·
.Schedu le
E-ELEC
T1ime of ruse
Peri,od
Summe1r {Jun-Sep)
SUMMER PEAK
SUMMER PART-PEAK
SUMMEIR OlfF-PEAK
Win1ter (Oct-May)
W IIINIITIER PEAK
W IIINIITIER PART-PEAK
WINITIER OFF-PEAK
,5VC:E
Ge·ne·ration
1Rates1
$ 0.. 261 26
$ 0 . 17206
$ 0,.13147
$ 0..11534
$ 0,.09737
$ 0,.0853.5
sv,c:11:
,Gene1ratiion
Servioe2
$ 0 .2652.6
$ 0 . 17606
$ 0.13547
$ 0 . 11934,
$ 0 . 10137
$ 0 .08935
PG&E
$ 0 .29473
$ 0 .19562
$ 0 .lS0S:2
$ 0 .13260
$ 0 .11263
$ 0 .09928
19 Over 60% of average usage occurs Off-Peak – we
want to push this even higher
0 100
200
300
400
500
600
700
800
900
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
kWh
Annual Electricity Usage (All-Electric Single-Family Home model) Off-Peak Partial-Peak Peak
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■ ■ ■
20 Discount Options – Details
PG&E Gen Flat 10% Discount TOU Std Discount TOU Plus Discount TOU Super Discount Winter
Off-Peak $0.09928 $0.08935 10% $0.07942 20% $0.07446 25% $0.06950 30% Partial-Peak $0.11263 $0.10137 10% $0.11263 0% $0.11263 0% $0.11263 0% Peak $0.13260 $0.11934 10% $0.13260 0% $0.13923 -5% $0.14586 -10% Summer
Off-Peak $0.15052 $0.13547 10% $0.12041 20% $0.11289 25% $0.10536 30% Partial-Peak $0.19562 $0.17606 10% $0.19562 0% $0.19562 0% $0.19562 0% Peak $0.29473 $0.26526 10% $0.29473 0% $0.30946 -5% $0.32420 -10% Item 6
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21 $0.00
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
E-ELEC Flat 10% TOU Standard TOU Plus TOU Super
Price Difference Between Peak and Off-Peak Rates
Peak vs. Off-Peak Price Delta (E-ELEC Bundled Rates)
Summer Winter
Beneficial electrification is supported by the
difference between Peak and Off -Peak prices
$0.067
$0.271
$0.056
$0.249
$0.033
$0.204
$0.036
$0.219
$0.079
$0.293
(PG&E)
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[ ) [ )
[ ) [ )
[ ) [ ) [ ) [ ) [ )
■ ■
22 $0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Average Customer Savvy Customer Heavy Peaker
Annual Utility Cost (Electricity + Methane Gas)
Annual Utility Costs (Single -Family Home)
Mixed-Fuel Home E-TOU-C PG&E's E-ELEC Flat 10% TOU Standard TOU Plus TOU Super EV-2A We anticipate the All -Electric single-family home on E-ELEC will save money compared to being Mixed -Fuel
55%
20%
25%
70%
18%
12% 40%
25%
35%
= Off-Peak
= Partial-Peak
= Peak
% Annual
Energy
Usage by
TOU-period
All-Electric
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■ I· . ■ ■ • • • I
■
■
■
23 Additional Takeaways from the Rate Analysis
• Peak usage would have to exceed 50% of total annual kWh while Off-Peak was below 30% to lose money on TOU Super (0.004% of res customers) • All three customer scenarios realize savings on E-ELEC compared to E-TOU-C, regardless of the discount approach • Based on PG&E’s published 2023 methane gas price forecast, the average All-Electric single-family home saves money over Mixed-Fuel by enrolling in E-ELEC (even without a discount)
• Rate participation is voluntary – customers can always select a different rate if their needs change (e.g., TOU-C, EV-2A, etc.)
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24 Total Peak usage is consistent across all residential SEVI groups
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%
# SAIDs (as % of total res customers)
Peak Annual Usage as % of Total Annual kWh
Residential Peak Usage Characteristics by SEVI
All SEVIs SEVI 1 SEVI 2 SEVI 3 SEVI 4
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25 The EV rate paints an idealized picture of what reduced Peak usage could look like
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
# SAIDs (as % of total rate subscription)
Peak Annual Usage as % of Total Annual kWh
Peak Usage Profiles by Residential Rate Category
All Res Rates E1 ETOUC EM EV2A
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26 For the average customer, peak usage represents 25% of total annual consumption, and Off -Peak ~53%
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# Residential SAIDs
I-" I-" N N w w .i=,. y, ~o y, ~o ~u, ~o ~u, ~o
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0%
2.5%
5.0% I I I I I I I I 0 VI
rt
1.s% I
I I I I I I I I
.,
10.0% ]
C'" C
rt
12.5% ;::J I
I I I I I I I
0 ::,
15.0% 0
-+.
17.5% I I I I I I I -0 ro
cu 20.0% I I I I I :,;:-
22.5% I I cu ::, 25.0% I Cl. 0 27.5% I
?ft. I -0
0 30.0% I ro
- cu
c;i 32.5% I :,;:- ...,. ::0 OJ
)> 35.0% I ro
::J VI ::J 37.5% :J Cl. C ro OJ
-
40.0% :J ::, C rt
VI cu OJ 42.5% ()"Cl
(D I I I I I I I I C 45.0% I VI cu
47.5% I I I I I O'Q ro
50.0% I I I cu VI 52.5%
I I I I : I I I I I 55.0% rt
cu
57.5% I I I I
-
)>
60.0% I I I I I I ::,
::,
62.5% ~
I I I I I I I
C
cu
-
65.0% :=:J :,;:-67.5% :=:J I I I I I I I I ::::r
---- 70.0%
72.5% 75.0% ] I I I I I I 0 0
- ::i
I
- I
77.5% ] I I I I I I "'O "'O (l) (l)
Q) Q)
7" 7" 80.0% .
27 Economics of the TOU Plus & Super discounts depend on the balance of Peak vs. Off-Peak energy usage
“Savvy”
customers: 5%
“Average”
customers: 90%
“Heavy
Peakers”: 5%
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OFF-PEAK/ PEAK __ o ... . o,.,¼ ___ 2-..5=¼.-_5_. O=¼,... __ 7.=5¼ ... ❖ __ 10 .... o,.,¼ __ 12-.. 5=¼--_15_. O=¼,.,. _ 1_7.-=5¼ .... _ 2_0 .... o,.,¼ ___ 22-.. 5=¼.-_2_5.0=¼,... _ 2_7.=5¼ .... _ 3_0 .... 0,.,¼ ___ 32-.. 5=¼--_3_5.0=¼,.,. _ 3_7.-=5¼ .... _ 4_0 .... 0,.,¼ ___ 42 __ . 5=¼.-_4_5.0=¼,... _ 4_7.=5¼ .... _ 5_0 .... o,.,¼ ___ 52 __ . 5=¼--_5_5.0=¼,... _ 5_7.-=5¼ .... _ s_o .... O=¼ 0~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
2~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
7.~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ --------- ~ ~ n~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Q~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
fi~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
v~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
m~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
ll~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
n~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
30.0¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ 0¼,--......,,0.,..¼,-----,0,.,.¼--0=¼""'". -......,,.O¼""".-----=o""'"¼,-----,0,.,.¼--0=¼""'" . -......,,.O¼""".-----=o""'"¼,-----,0,.,.¼--~ O¼ O¼ O¼ O¼ O¼ r~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
n~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
ill~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Q~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ u u u ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
45.0¼ O¼ 0% 0% O¼ O¼ 0¼...-----,0 .... ¼--0 ... ¼.,.. --o¼""".--o"""¼--0"""% __ ..,.1¼ ...--2%""".--2"""¼--l"""¼ ...... -O ... ¼ .... --o¼""". --o"""¼--O...., ¼ 0% 0% 0% 0% 0% 0% Q~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ U TI ~ U U ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ U TI ~ ~ U ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
2~ ~ ~ ~ ~ ~ ~ ~ ~ ~ U ~ ~ U ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
¼~ ~ ~ ~ ~ ~ ~ ~ ~ u ~ ~ u ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~ ~ ~ ~ ~ ~ ~ U TI ~ TI U ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
W~ ~ ~ ~ ~ ~ ~ ~ U TI U U ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
R~ ~ ~ ~ ~ ~ ~ ~ U U U ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
65.0% 0% 0¼,-----;;0..-¼,------;0,.;,.¼;;,-.-.;;;,0¼""". - ........ O¼,_;,.L..----;;0..-¼,---1.;;,.¼;;,-.-;;;;,1%""". -......,;.0¼;,.;,.----;;0..-%,......----;0,.;,.%;;,-.-.;;;,0%""". - ........ %;,.;,.----;;0..-;, .:--a 0% 0% 0% 0% 0% ~~ ~ ~ ~ ~ ~ ~ ~ u ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
m~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
n~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
77.5% % O¼.___o .... ¼---o""'¼--"""'o¼""". --o¼-.--o .... ¼---""'% __ ...,0%""'. --% .... ---- O¼ % O¼ % O¼ % % O¼ % 00~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
%~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ---------,% ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
100.0%.__ ___ o.,.% __ 0 __ % __ ..., 0¼ .... __ 0%.., ____ o.,.% __ 0 __ % __ ..., 0¼ .... __ 0%..,. ____ o.,.% __ 0 __ % __ ..., 0¼ .... __ 0%..,. ____ o.,.% __ 0 __ % __ ..., 0¼ .... _ ...... 0%..,. ____ o ... ¼ __ 0 __ % __ ..., 0¼ .... _ ...... 0%..,. ____ o ... ¼ __ 0 __ % __ ..., 0¼ .... _ ...... 0%..,. ____ o._. % 28 How do we market the discount to our
customers?
• Targeted marketing to customers who already qualify for E-ELEC based on participation in HPWH, FFH, and/or GridShift programs • General awareness campaign via e-mail/newsletter
• Embed rate optimization into customer programs upon project completion (e.g., as part of a concierge service)
• Experiment with different messaging to groups of participating customers in order to evaluate impact on behavioral changes • Explore engagement tools – how can we inform customers about TOU and make load shifting easy and accessible?
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AMENDED
29 SCE’s “Appliance Energy Use Cost Estimator” for residential customers – a tool to encourage Off -Peak usage
https://www.sce.com/residential/rates/Time-Of-Use-Residential-Rate-Plans/Appliance-Energy-Use-Cost-Estimator Item 6
PRESENTATION
AMENDED
Appliance Energy Use Cost Estimator
See how much you can save by shifting
energy use to off-peak hours
Whole House
HVAC
Based on less than 1
hour per day
$59.00 Super Off-Peak
per month 8 a.m. - 4 p.m.
$54.00 Off-Peak
per month 9 p.m. - 8 a.m.
$94.00 Mid-Peak
4 p.m. - 9 p.m. per month
Disclaimer: These cost estJimates are based on average monthly usage of eaclh appliance and currently applicable Soutllern California Edison (SCE) rates and is provided to illustrate potent1ial bill impacts to hellp you understand how Time-of-Use peak periods impact tlhe price you pay. Appliances with 3+ hours of average daily usage may cross into other peak periods. Additional usage is calculated at the next lowest price and included in the cost in an effort to provide the most accurate estimate of total potential cost impacts. The costs above are estim ates and cannot be guaranteed to reflect M ure potentJial costs that might be experienced under these rate plans. Actual costs will vary due to changes i11 usage patterns, weather variability, taxes, and.lor pending and futt re rate changes. Changes to these numerous vari1abl
1es willl affect actual costs. These estimates do not inc!lt1de baseline credit amounts, or rate discount programs llike CARE, FERA or Summer Discount Plan {SOP). Unfortunately at tih is time the TOU-0 -T rate plan is not factored into our appliance tool.
• Subtitle
New SV Clean Energy
PowerPoint Template
Building Member Agency
Capacity for Climate
Action
March 24, 2023
Item 7
PRESENTATION
2 >$10M to Support Your Agency
Upgrading to Clean &
Resilient Buildings
• $5M Community Energy
Resilience
• $3.6M Electrification
Demonstration
Improving Planning,
Policies & Permitting
This Photoby Unknown Author is licensed under CC BY
• $3M Permit Modernization
• $1.9M Policy Experimentation
• $400K Reach Codes
• $300K EV Fleet Planning Grants
Supporting Engagement &
Collaboration
• $3M Permit Modernization
• Member Agency Working Group
• SVTEC
• Grant Coordination
Item 7
PRESENTATION
3 Appendix
Item 7
PRESENTATION
4 Completed Resilience Projects
Item 7
PRESENTATION
5 MAWG Activities
• MAWG includes staff from SVCE member agencies
• Monthly meetings via Zoom
• Weekly brief newsletter
• Purposes
• Inform agency staff about SVCE programs
• Get input from agency staff on SVCE programs in development • Share general information among entire group about other local, regional, state, and federal programs
• Provide access to agency staff both to and from SVCE
Item 7
PRESENTATION