1 Rio Bravo Fresno Biomass
SVCE Board Meeting
April 12, 2023
Item 3
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 3
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 3
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
Item 3
PRESENTATION
1 Middle River Power – Hanford Hybrid
Natural Gas Power Plant with New
Battery Energy Storage System
SVCE Board Meeting
April 12, 2023
Item 4
PRESENTATION
Amended
2 Request
1. Consider 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
Amended
3 Background and 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
April 2023
Executive Committee
Request to Support
Hanford PPA
Item 4
PRESENTATION
Amended
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.
Fossil: Primarily Natural Gas, Coal
Clean: Hydro and Nuclear
Fossil: Natural Gas
Clean: Hydroelectric, Nuclear
Renewable: Solar, Wind, Geothermal
and limited Storage
Fossil: Less Natural gas
Clean: Hydro, Demand Response, & New
Technologies.
Renewable: Solar, Wind, Geothermal, Off-shore Wind, Storage Past Present Future
(-) Coal (mostly retired) (-) No nuclear
SB100: 100% Clean
electricity by 2045
3x the amount of Solar and Wind and 8x of
Storage over current rates of development are
needed
Item 4
PRESENTATION
Amended
5 What is Reliability?
California energy agencies are charged with ensuring that there is sufficient energy and capacity available on the power grid to meet demands at all times • Capacity (MW) - maximum output of electricity
+
• Energy (MWh) - electricity generated over time
=
• Reliability – Power Plant performance during certain
periods of time
Item 4
PRESENTATION
Amended
6 September 6, 2022 – Gas Keeps Lights on in
California
• Load peaked in
evening hours when
Renewables ramped down
• Demand Response helped
avoid rolling blackouts
Natural gas generation
played a critical role in
meeting peak demand
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
Amended
7 Clean Energy Generation Varies
Baseload and Quick Start Resources such as Natural Gas and Geothermal provide 24/7 reliability
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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
Geothermal Natural Gas
Natural Gas and
Geothermal
provide
consistent and
dependable
generation
Item 4
PRESENTATION
Amended
8 Clean Energy Generation Varies
Wind Resources can provide 24 Hour Reliability but at much lower capacity factors 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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
Wind Geothermal Natural Gas
Wind Resources
variability is
represented by a
lower capacity
factor throughout
the day
Item 4
PRESENTATION
Amended
9 Clean Energy Generation Varies
Solar Energy provides a consistent shape, but only during the middle of the day 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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 Geothermal Natural Gas
Solar provides
consistent
generation but is
confined to when
the sun is shining
Item 4
PRESENTATION
Amended
10 Clean Energy Generation Varies
Storage can shift solar energy and other forms of zero-emissions resources to hours where it is needed
Batteries will
charge from
solar power and
shift to hours
where it is
needed for
reliability
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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+Storage Wind Solar Geothermal Natural Gas
Item 4
PRESENTATION
Amended
11 Power Supply Products & Strategy
SVCE must procure electricity products to meet mandates and Board directives
Energy
100% Clean
RPS
Reliability Procurement Mandates
Hydro, Solar, Solar plus Storage,
Geothermal and Wind
Long-term Power Purchase Agreements
(PPA) and Short-term Resources
Capacity
Resource Adequacy
Reliability Procurement
Mandates
Natural Gas, Solar, Geothermal, Wind,
Storage
PPAs (bundled energy & capacity)
Short-term RA capacity only, products
Goal or
Requirement
What We Buy
How We Buy It
Item 4
PRESENTATION
Amended
12 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
SVCE's RA Capacity Requirement is ~850 MWs
• SVCE expects to be deficient in CY 2023
1. Changes to obligation
2. Changes to technology effectiveness
3. Scarcity in market
4. PPA project delays
Item 4
PRESENTATION
Amended
13 SVCE's PPAs and their RA Capacity
SVCE does not have a Clean Capacity goal, but has over 900 MWs of Clean Capacity that qualifies for about 408 MWs of RA Capacity Clean Only Capacity - 2000 to
2500 MW of Additional Solar +
Storage Nameplate Capacity
needed to meet requirements
Typical lead time to build new
renewable resources is 3-5
years
CPUC’s RA Program will
continue to erode counting
capacity for intermittent
resources
Renewable
Effectiveness
towards Reliability is
adjusted based on
expected availability
and duration
Item 4
PRESENTATION
Amended
14 SVCE's Energy & Capacity Portfolio
Estimated for
2025
Annual Energy
(GWhs)
Energy Source as a
Percent of Total Retail
Sales
Capacity Source as a
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
65% RPS from LT PPAs by 2025,
12% of RA Requirements
Storage capacity will meet 30% of
RA Requirement but no energy
Overall 42% Clean Capacity
RA and reliability met primarily
through natural gas
Item 4
PRESENTATION
Amended
15 Clean Capacity Challenges
Technology Strategy Challenges
New storage, stand-alone and/or paired with solar and wind • Long-lead time to build (three to five years); • Large development risk associated with supply chain,
labor and interconnection
• Sub-optimal portfolio if too much storage is added
Out-of-state wind & off-shore 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
Amended
16 SVCE’s Reliability Challenge & Strategy
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 • RA market is tightening and cost are increasing
• SVCE relies on short-term, natural gas RA-only capacity contracts • Regulatory uncertainty around future procurement orders and/or central procurement of clean capacity Adapt:
• Layer in longer-term gas RA purchases to reduce sensitivities to price, supply, and compliance risk • Continue to plan for a clean energy transition
Item 4
PRESENTATION
Amended
17 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
Amended
18 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
Amended
19 Hanford Portfolio Impacts & Benefits
Estimated 2025
Annual Energy
(GWhs)
Energy Source as a Percent
of Total Retail Sales
Capacity Source as a 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% 0%
Battery Storage 0 0% 32%
Natural Gas 0 0% 40%
Hanford – Natural Gas Est. 8 .2% 16%
Total 3,933 100% 100%
Resource Adequacy Capacity from
BESS – 2%
Resource Adequacy Capacity from
gas peaker – 16%
Total Resource Adequacy – 18%
Energy generated for grid stability
Estimated ~ 0.2% of load.
Item 4
PRESENTATION
Amended
1 20
Hanford Portfolio Impacts & Benefits
Estimated 2025
Annual Energy
(GWhs)
Energy Source as a Percent
of Total Retail Sales
Capacity Source as a 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% 0%
Battery Storage 0 0% 32%
Natural Gas 0 0% 40%
Hanford – Natural Gas Est. 8 .2% 16%
Total 3,933 100% 100%
Resource Adequacy Capacity from
BESS – 2%
Resource Adequacy Capacity from
gas peaker – 16%
Total Resource Adequacy – 18%
Energy generated for grid stability
Estimated ~ 0.2% of load.
Item 4
PRESENTATION
Amended
21 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
• Minimal reportable emissions on Power Content Label
• Consider establishing a fund to mitigate impacts
• Fund details to be discussed with Board and other
stakeholders
Item 4
PRESENTATION
Amended
22 SVCE’s Reliability Solution
Alternative strategies needed to mitigate supply and price risk and meet reliability obligations
Hanford PPA
• Primarily Resource Adequacy Capacity
• New BESS meets Mid-term Reliability
Procurement Order
• Emissions are low and decrease over time
• Little development risk
• Competitively priced and adds portfolio
value
• Term aligns with California’s transition to a
Clean grid
Additional Efforts
• Increase Long-term RA Purchases and
decrease reliance on short-term contracts
• Consider additional hybridized gas
resources for reliability
• Pursue additional Clean Capacity resources
including geothermal, biomass, wind, solar
& storage
• Build up portfolio of Demand Response,
Distributed Energy Resources and Virtual
Power Plants
Item 4
PRESENTATION
Amended
23 Portfolio Goals
SVCE has an aggressive Clean Energy Goal: 100% Clean Energy on an annual basis. Capacity procured to meet reliability and Resource Adequacy requirements.
Clean Annually
50% RPS: short-term PCC1
50% Carbon-free: Large Hydro and
Nuclear Allocations
Capacity
~95 to 100% Natural Gas Capacity Only
Short-term contracts
Clean Annually
50 to 75% RPS: long-term PPAs
Balance from Large Hydro
Capacity
25 to 50% from Clean Resources
50% from Natural Gas Some Long-Term
and/or Short-Term
Matched 24x7 Clean
50 to 75% RPS: long-term PPAs
Balance from Large Hydro
Capacity
75% from Clean Resources
25% from Short-Term Natural Gas
Past ~2036 ~2045
2022-23 Strategic Focus Area: 24x7 CLEAN ENERGY: Explore 24x7 clean energy delivery at scale, to improve on the current 100% clean energy goal Item 4
PRESENTATION
Amended
24 Request from Board
Approve Resolution 2023-06:
1. Delegates authority to CEO to finalize and execute a Power Purchase Agreement with Middle River Power for the Hanford Hybrid Natural Gas Power Plant with Battery Energy Storage System, with the following parameters:
• RA capacity from existing Hanford Natural Gas Power Plant of 99.4 MW • Additional RA capacity from a new BESS of 16 MW, counting towards the MTR Procurement Order • Dispatchable energy from peaker plant subject to operating constraints and to meet demand under certain market and grid conditions
• Term: April 1, 2024 date and delivery through April 30, 2036. • Not-to-exceed dollar amount: $280,000,000
2. Approves an exception to the Energy Risk Management Policy to enable gas transactions needed to manage Hanford PPA
3. Directs 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
Amended
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 5
PRESENTATION
o
o
o
Item 5
PRESENTATION
Update to "TOU Super" design
-30% Off-Peak rates: cost savings
+10% Peak rates: cost increase
0% adjustment to Partial-Peak
TOU-based design rewards customers the more they shift their usage to help the grid - beneficial electrification
Item 5
PRESENTATION
•
•
•
•
Item 5
PRESENTATION
© E-ELEC Residential Rate Background
The Board recently
approved $9.SM to
fund a multi-year
discount to the E-ELEC rate
PG&E's new E-ELEC ("Electric Home") rate open to
residential customers with heat pump, HPWH, EV,
and/or ESS
Currently unavailable to NEM customers
Flat 10% discount currently in place for SVCE's rate
pilot
Note: for equitable access to electrification, the
Board also set aside $9.5M for the multifamily
direct-install program
4 •
•
•
Item 5
PRESENTATION
Electrification discount established to support electrification by improving on-bill economics of switch from gas to electric appliances.
However ...
We can go further to promote beneficial electrification:
Lower bills
Reduce grid stress
Align usage with solar and wind generation
Item 5
PRESENTATION
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
6 Item 5
PRESENTATION
Item 5
©
PRESENTATION
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 12a.m. OFF-PEAK 3 p.m. 4 p.m. PEAK 9 p.m. 1.2a.m.
-- PARTIAL-PEAK ---
TOU = Time-of-Use 8
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%
Item 5
PRESENTATION
SVCE's E-ELEC Generation Discount Rates per TOU Period
Note: Discount options were designed to be revenue neutral to SVCE for the average customer. 9 Item 5
PRESENTATION
Average Customer
Savvy Customer
Customers
■ = Off-Peak ■ = Partial-Peak ■ = Peak 10
$0
$50
$100
$150
$200
$250
Average Customer Savvy Customer Heavy Peaker
Flat 10% TOU Standard TOU Plus TOU Super
3%
10%
10%
10%
9% 9% 10%
12%
15%
17%
5%
4%
Item 5
PRESENTATION
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ro
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Annual Customer Generation Discount vs PG&E's E-ELEC
90% ofSVCE
Customers
■
5% of SVCE
Customers
■ ■ ■
5% of SVCE
Customers
%Annual
Energy Usage
by TOU-period
=Off-Peak
■ = Partial-Peak
=Peak
Generation
discount
relative to
PG&E
11 Item 5
PRESENTATION
MEET AVERAGE CUSTOMER
Average Customer pays - $270/month for gas
& electricity.
RETROFITS FURNACE TO HEAT PUMP
Average Customer saves an extra $11/month
($32/month total savings) after retrofitting
their furnace to heat pump.
RETROFITS 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 enrol ling in
E-ELEC rate 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.
12 •
•
•
•
Item 5
PRESENTATION
Proposed E-ELEC design update:
Phase 1
Discount guaranteed through at least Jan 1, 2027
Limited to first 1,000 enrolled customers
SVCE to actively market discount and encourage usage shifting Phase 2
Staff to reevaluate time-guarantee based on Phase 1 participant data, remaining funding, and other relevant factors
13 Item 5
PRESENTATION
3. Takeaways & Staff Recommendation
14 •
•
Item 5
PRESENTATION
A flat discount promotes non-beneficial behavior - more Peak energy consumption gives a bigger reward
A TOU-based design rewards a customer more the more they shift their usage to a beneficial pattern - low/no risk opportunity 15 o
o
o
Item 5
PRESENTATION
Adopt Resolution 2023-07 to Update the E-ELEC discount to reflect the "TOU Super" design structure
-30% Off-Peak rates: cost savings
+10% Peak rates: cost increase
0% adjustment to Partial-Peak
16 Item 5
PRESENTATION
•
•
•
•
•
•
•
Item 5
PRESENTATION
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
18 Item 5
PRESENTATION
sv,c:1: Rate·
.Schedule
E-ELEC
T1im e of ruse
Peri,od
Summe1r {Jun-Sep)
SUMMER PEAK
SUMMER PART-PEAK
SUMMEIR OlfF-PEAK
W in1ter (Oct-May)
W IIINIITIER PEAK
W IIINIITIER PART-PEAK
WINITIER OFF-PEAK
,5VC:E
Ge·ne·rat ion
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
Discount
Level
10%
10%
10%
10%
10%
10%
19 0
100
200
300
400
500
600
700
800
900
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Off-Peak Partial-Peak Peak
Item 5
©
PRESENTATION
Over 60% of average usage occurs Off-Peak - we
want to push this even higher
Annual Electricity Usage (All-Electric Single-Family Home model) ■ ■ ■
20 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 5
PRESENTATION
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
Summer Winter
Item 5
PRESENTATION
© Beneficial electrification is supported by the
difference between Peak and Off-Peak prices
Peak vs. Off-Peak Price Delta (E-ELEC Bundled Rates)
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co
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~
co ( $0.293 ) <1)
( $0.271 ) a..
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0 ( $0.249 )
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co ( $0.204 ) <1)
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+-'
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( $0.079 ) C
( $0.067 )
<1)
,._
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( $0.056 ) ::::
0 <1) ( $0.036 ) ( $0.033 ) u
·;::
a..
(PG&E)
■ ■
22 $0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Average Customer Savvy Customer Heavy Peaker
Mixed-Fuel Home E-TOU-C PG&E's E-ELEC Flat 10% TOU Standard TOU Plus TOU Super EV-2A All-Electric
Item 5
PRESENTATION
U)
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+-'
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+-'
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+-'
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(f)
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:t:
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■ I·
Annual Utility Costs (Single-Family Home)
■ ■ ■ ■ ■ ■
%Annual
Energy
Usage by
TOU-period
■ = Off-Peak
■ = Partial-Peak
=Peak
23 •
•
•
•
Item 5
PRESENTATION
© 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.)
24 0%
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0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%
All SEVIs SEVI 1 SEVI 2 SEVI 3 SEVI 4
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PRESENTATION
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Peak Annual Usage as% of Total Annual kWh
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Item 5
©
PRESENTATION
Economics of the TOU Plus & Super discounts depend on
the balance of Peak vs. Off-Peak energy usage
OFF-PEAK / PEAK 0.0% 2.5% 50¼ 7.5% 100¼ 12.5¼ 150¼ 17.5% 20.0¼ 22.5¼ 25.0¼ 27.5¼ 30.0¼ 32.5¼ 35.0¼ 37.5¼ 400¼ 42.5¼ 450¼ 47.5% 500¼ 52. 5¼ 550¼ 57.5% 60.0¼
0.0% O¼ 0% O¼ 0% O¼ 0% O¼ 0% O¼ 0% O¼ 0% 0% 0% 0% 0% 0% O¼ 0% O¼ 0% O¼ 0% O¼ 0%
2.5% 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%
5.0¼ 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%
7.5¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
10.0¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% "Heavy 0% 0%
12.5¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% O¼ 0% 0%
15.0¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0 Peakers": 5% 0% 0%
17.5¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
20.0¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
22.5¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% O¼ 0% 0% 0% O¼ O¼
25.0¼ 0% 0% 0% 0% 0% 0% O¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% O¼ O¼ O¼ O¼ 0% O¼ 0%
27.5¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% O¼ O¼ O¼ 0% O¼ O¼ 0% O¼ 0% 0%
30.0% 0% 0% 0% 0% 0% 0% 0% O¼ 0% O¼ 0% O¼ 0% O¼ 0% O¼ 0% O¼ O¼ O¼ O¼ 0% 0% 0%
32.5¼ 0% 0% 0% 0% 0% O¼ 0% 0% 0% 0% O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ 0% 0% O¼ 0%
35.0¼ 0% 0% 0% 0% 0% 0% O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ 0% 0% 0% 0%
37.5¼ 0% 0% 0% 0% 0% 0% 0% O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ 0% 0% 0% 0%
40.0¼ 0% 0% 0% 0% 0% 0% 0% O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ O¼ 0% 0% 0% 0% 0%
42.5% 0% 0% 0% 0% O¼ 0% O¼ O¼ O¼ O¼ O¼ O¼ 1¼ 1¼ 1¼ O¼ O¼ O¼ O¼ O¼ 0% 0% 0% 0% 0%
45.0¼ 0% 0% 0% 0% O¼ O¼ O¼ O¼ O¼ O¼ O¼ 1¼ 2¼ 2¼ 1¼ O¼ O¼ O¼ O¼ 0% 0% 0% 0% 0% 0%
47.5¼ 0% O¼ 0% O¼ O¼ O¼ O¼ O¼ O¼ O¼ 1¼ 3¼ 4¼ 2¼ 1¼ O¼ O¼ O¼ 0% 0% 0% 0% 0% 0% 0%
50.0¼ 0% 0% 0% 0% O¼ O¼ O¼ O¼ O¼ 1¼ 3% 6% 4% 1¼ O¼ O¼ O¼ 0% 0% 0% 0% 0% 0% 0% 0%
52.5¼ 0% 0% O¼ 0% O¼ O¼ O¼ O¼ O¼ 2¼ 6% 5% 2¼ O¼ O¼ O¼ 0% O¼ 0% O¼ 0% O¼ 0% 0% 0%
55.0¼ 0% 0% O¼ O¼ O¼ O¼ O¼ O¼ 1% 5% 6% 2¼ O¼ O¼ O¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
57.5% O¼ 0% O¼ O¼ 0% O¼ 0% 1¼ 3% 5% 3% 1¼ 0% O¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
60.0¼ 0% 0% O¼ O¼ 0% O¼ 0% 1¼ 3% 2¼ 1% O¼ 0% O¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
62.5¼ O¼ 0% 0% O¼ O¼ O¼ O¼ 1¼ 2¼ 1¼ O¼ O¼ O¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
65.0¼ 0% O¼ O¼ O¼ O¼ O¼ 0% 1¼ 1% O¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
67.5¼ 0% O¼ O¼ O¼ O¼ O¼ O¼ 1¼ O¼ O¼ 0% 0% 0% 0% 0% "Average" 0% 0% 0% 0% 0%
70.0¼ 0% 0% O¼ O¼ O¼ O¼ O¼ O¼ O¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
72.5¼ 0% 0% 0% 0% 0% 0% O¼ 0% O¼ 0% 0% 0% 0% 0% 0% customers: 90% 0% 0% 0% 0% 0%
75.0¼ 0% 0% 0% O¼ 0% O¼ 0% O¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
77.5¼ 0% O¼ O¼ O¼ O¼ O¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
80.0¼ 0% O¼ O¼ O¼ O¼ O¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
82.5¼ 0% 0% O¼ O¼ O¼ O¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
85.0¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% "Savvy" 0% 0% 0% 0% 0% 0% 0% 0% 0%
87.5% O¼ O¼ O¼ O¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
90.0¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% customers: 5% 0% 0% 0% 0% 0% 0% 0% 0% 0%
92.5¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
950¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
97.5¼ 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 28 100.0¼ ¼ ¼ ¼ ¼ ¼ ¼ ¼ ¼ ¼ ¼ ¼ •
•
•
•
•
Item 5
PRESENTATION
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?
29 Item 5
PRESENTATION
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
https://www.sce.com/residential/rates/Time-Of-Use-Residential-Rate-Plans/Appliance-Energy-Use-Cost-Estimator 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.
30