1 • Subtitle
New SV Clean Energy
PowerPoint Template
Strategic Focus Areas Update
August 25, 2023
SVCE Executive Committee
Item 3
PRESENTATION
2 May
Enterprise Risk &
Opportunities
Budget
Strategic Focus
Areas
May-Aug
Strategic Plan Input
& Updates
September
Approve Budget,
Strategic Focus
Areas
Sep-Oct
CEO evaluation&
Priorities (Sep)
Present detailed
work plan and
measures (Oct)
Oct-Sep
Implementation
Strategic Plan & Budget Timeline
April & May & Q3 - Staff input
May 26 - Executive Committee (strategic plan & budget) June 14 - Board (strategic plan)
June 23 - Executive Committee (strategic plan & budget) August 1 - Finance Committee (budget)
August 9 - Board (budget)
September 13 – Strategic Focus Areas and Budget Approval October 11 – SVCE Work Plan presented to Board
Item 3
PRESENTATION
3 SVCE Planning & Budgeting Process
SVCE Mission: Reduce dependence on fossil fuels by
providing carbon-free, affordable, and reliable
electricity and innovative programs for the SVCE
community.
Comprehensive assessment of risks and
opportunities to optimally achieve mission
Organization-wide priorities and
alignment toward achieving the mission
Funding in alignment with achieving
the strategic focus areas
Budget
Strategic Focus
Areas
Enterprise Risk
Management
Item 3
PRESENTATION
4 Strategic Work Plan & Focus Areas Staff driven
Board driven
Item 3
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
STRATEGIC PLAN
Mission
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5 No Changes to Mission & Measure
MISSION:
Reduce dependence on fossil fuels by providing carbon free, affordable, and reliable electricity and innovative programs for the SVCE community MEASURE:
SVCE, working with SVCE member agencies, aspires to achieve energy and transportation GHG reductions of 30% from the 2015 baseline by 2021, 40% by 2025, and 50% by 2030 Item 3
PRESENTATION
6 1. 24x7 Clean Energy
2. Customer Base and Electrification
3. Inflation Reduction Act
4. Finance
5. Employee
FY 24 Focus Areas
FY 23
Supporting Work:
Risk and Opportunities being updated
Strategies (21), Measures (80) being updated
Utilize Monday.com to track during the year
Update details under each Strategic Focus Area
1. Expand Clean and Reliable Grid Actions
2. Expand Customer Base & Interaction
3. Accelerate Building & Transportation Electrification
4. Implement Innovative Financing Solutions
5. Attract & Retain Employees
FY 24
Item 3
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
7 5 Strategic Focus Areas – FY 24
Expand Clean &
Reliable Grid
Actions
Explore 24x7 clean
energy delivery at
scale; evaluate
SVCE role in
enhancing
distribution and
transmission
reliability
Expand Customer
Base & Interaction
Grow non-residential
customer base;
Expand Offerings &
emphasize
electrification to all
customers
Accelerate Building
& Transportation
Electrification
Accelerate
deployment of
currently adopted
decarbonization
strategies and
goals; evaluate and
capitalize on
federal and state
funding
opportunities
Innovative
Financing Solutions
Implement
innovative financing
solutions to
increase impact of
decarbonization
program offerings,
especially to lower-income customers
Attract & Retain
Employees
Be the Employer of
Choice, and
Increase Staffing;
Hire CEO*
Synergy & Overlap
*Only addition since June 14, 2023 board meeting
Item 3
PRESENTATION
8 May
Enterprise Risk &
Opportunities
Budget
Strategic Focus
Areas
May-Aug
Strategic Plan Input
& Updates
September
Approve Budget,
Strategic Focus
Areas
Sep-Oct
CEO evaluation&
Priorities (Sep)
Present detailed
work plan and
measures (Oct)
Oct-Sep
Implementation
Strategic Plan & Budget Timeline
April & May & Q3 - Staff input
May 26 - Executive Committee (strategic plan & budget) June 14 - Board (strategic plan)
June 23 - Executive Committee (strategic plan & budget) August 1 - Finance Committee (budget)
August 9 - Board (budget)
September 13 – Strategic Focus Areas and Budget Approval October 11 – SVCE Work Plan presented to Board
Item 3
PRESENTATION
9 APPENDIX
Item 3
PRESENTATION
10 1. EXPAND CLEAN & RELIABLE GRID ACTIONS
Explore 24x7
clean energy
delivery at scale,
evaluate SVCE
role in enhancing
distribution and
transmission
reliability
• Explore pathways to measure & achieve carbon free
24x7 for the entire portfolio and aligned with SVCE’s
mission
• Implement Google’s Carbon Free Energy (CFE)
framework and explore opportunities to offer
expanded clean offerings to other customers
• Explore VPP opportunities and how we can
demonstrate the “grid of the future”
• Explore targeted SVCE role to enhance distribution
and transmission reliability
Item 3
PRESENTATION
11 2. EXPAND CUSTOMER BASE & INTERACTION
Grow non-residential
customer base;
Expand Offerings
& emphasize
electrification to
all customers
• Be the Supplier of Choice; attract and retain DA
customers
• Maintain competitive rates; increase customer
offerings and demand side programs
• Expand value proposition emphasizing
electrification
Item 3
PRESENTATION
12 3. ACCELERATE BUILDING AND
TRANSPORTATION DECARBONIZATION
Accelerate
deployment of
currently adopted
decarbonization
strategies and goals;
evaluate and
capitalize on federal
and state funding
opportunities to
further improve
programs
• Grow our capacity and deploy programs at a much larger scale
• Operationalize equity into programs
• Assist member agencies evaluating federal and state
decarbonization policies and program impacts
• Explore opportunities to influence and partner with other organizations on supporting a clean energy workforce."
Item 3
PRESENTATION
13 4. IMPLEMENT INNOVATIVE FINANCE
SOLUTIONS
Leverage Balance
Sheet for Structured
Financing and use
financing solutions to
increase impact of
decarbonization
program offerings,
especially to lower-income customers
• Continue building strong financial reserves
• Attract and retain DA customers
• Implement innovative financing solutions to
customers, particularly to reach those with
barriers to conventional programs (e.g., low
income, renters)
Item 3
PRESENTATION
14 5. EMPLOYEES
Be The Employer
of Choice, &
Increase Staffing
• Hire CEO
• Attract and Hire New Employees, passionate
about our mission and with excellent job
knowledge
• Build and maintain a high-performance
agency; preserve start-up culture of employee
innovation, engagement, and collaboration
• Continue enhancing remote, hybrid and in-person work
Item 3
PRESENTATION
15 WORKPLAN - 21 Goals and 75 Measures
(to be updated & presented to Board in October 2022)
Each Goal
associated
with
Measures
Item 3
PRESENTATION
STRATEGIC PLAN GOALS
1. Build and maintain a high-performing team
2. Maintain an enjoyable and rewarding workplace
3. Get great at prioritizing, and rebalancing to align work plan with higher level goals
4. Plan for resources to meet SVCE’s mission while balancing multiple stakeholder objectives
5. Acquire clean and reliable electricity in a cost effective, equitable and sustainable manner
6. Manage and optimize power supply resources to meet affordability. GHG reduction and reliability objectives
7. Work with the community to plan and track achieving energy and transportation GHG reductions of 30% from the 2015 baseline by 2021. 40% by 2025. and 50% by 2030
8. Coordinate development of decarbonization and resilience strategy, lead design of local policy and programs, and support program deployment
9. Use DAISY to enable data-driven decision-making across the organization
10. Empower customers with the awareness, knowledge and resources needed to make effective clean energy choices
11. Engage a full range of public, private, and non-profit stakeholders to leverage our decarbonization efforts
12. Enact competitive service offerings and programs that deliver measurable environmental and economic benefits
13. Commit to maintaining a strong financial position
14. Avoid failures in management of market, credit, liquidity, operational and enterprise risks
15. Advocate for policies that protect CCA customer investments and furthers decarbonization, grid reliability, affordability, and social equity with federal and state elected officials and regulators
16. Engage regulators, legislators, and local elected officials in representing SVCE priorities
17. Develop and enhance internal processes related to Supplier Diversity. Staffing and Compliance
18. Encourage the development of regulations that proactively support the changing, evolving energy market and facilitate grid innovation
19. Drive SVCE's local policy objectives by leveraging key stakeholders
20. Ensure SVCE’s Information Technology infrastructure is secure, reliable, and disaster resilient to provide 24/7/365 online access
21. Enable data-driven decision-making across the organization; automate, integrate, and streamline business processes to minimize operational risk and move organization toward industry best practices from its startup phase
B. POWER
SUPPLY
SVCE's Power Resource Team is responsible for planning, acquiring, and managing power supply resources to meet the community's clean energy goals and state-mandated power and reliability requirements. This is done through a balanced approach which considers cost.risk, long-term value, and best fit in meeting community goals. This requires sustainable planning,innovative thinking, prudent risk management and the constant search for the best solutions. Going forward, to be successful SVCE must adapt to new climate and social challenges: customer specific needs; support region-wide decarbonization and electrification goals: integrate distributed energy resources: collaborate and leverage opportunities for joint procurement: and become technology and data driven.
GOAL MEASURES
Plan for resources to
maat SVCE's mission
while balancing
multiple stakaholdar
objectives
Acquire claan and
reliable electricity
in a cost effective,
equitable and
sustainable manner
1. Integrated Resource I
affordable, reliable, and
2030 and beyond (204
2. Develop a platform t
distributed energy reso
operations
3. Implement process a
and policy integration t
Policy Teams
1. Achieve SVCE 100% < RPS mandate of 65%: n
procurement mandates
2. Meet SVCE's standar
(i.e.. GreenPrime and Gi
development of sustain
GreenPrime Direct and
custom product offerin
3. Pursue joint procurei
resource adequacy and
through CC Power and
power partners
"The successful planning and acquisition of clean and reliable energy serves as the foundation of SVCE's mission. Moving forward, we aspire to strengthen and diversify our portfolio with new cost-effective and innovative resources such as long-duration storage." Monica Padilla
A Director of Power Resources
GOAL MEASURES
Manage and optimize
power supply resources
to meet affordability,
GHG reduction and
reliability objectives
1. Manage Power Supply Portfolio and Energy Risk
2. Implement and Operate Power Purchase Agreements
to enhance value to SVCE
3. Ensure SVCE adopts the appropriate tools, systems,
and resources to support portfolio optimization,
risk management, load forecasting, compliance, and
settlements
16 Last Year's 5 Strategic Focus Areas – FY 23
24x7 Clean
Energy
Explore 24x7 clean
energy delivery at
scale, to improve
on the current 100%
clean energy goal
Customer Base
& Electrification
Grow Customer
Base & Offerings,
Emphasize
Electrification
Inflation
Reduction Act
Accelerate
deployment of
currently adopted
decarbonization
strategies and
goals; evaluate and
capitalize on the
Inflation Reduction
Act to further
improve programs
Finance
Leverage Balance
Sheet for
Structured
Financing and use
financing solutions
to increase impact
of decarbonization
program offerings,
especially to lower-income customers
Employee
Be the Employer of
Choice, and
Increase Staffing
Synergy & Overlap
Synergy & Overlap
Item 3
PRESENTATION
17 1. 24x7 CLEAN (FY23)
Explore 24x7
clean energy
delivery at scale,
to improve on the
current 100%
clean energy goal
• Explore pathways to measure & achieve
carbon free 24x7 for the entire portfolio
• Implement 24/7 service with Google and
explore with other customers
• Explore VPP opportunities and how we can
demonstrate the “grid of the future”
Item 3
PRESENTATION
18 2. CUSTOMER BASE & ELECTRIFICATION
(FY23)
Grow Customer
Base, Offerings, &
Emphasize
Electrification
• Be the Supplier of Choice; attract and retain DA
customers
• Maintain competitive rates; increase customer
offerings and demand side programs
• Expand value proposition emphasizing
electrification
Item 3
PRESENTATION
19 3. INFLATION REDUCTION ACT (FY23)
Accelerate
deployment of
currently adopted
decarbonization
strategies and goals;
evaluate and
capitalize on the
Inflation Reduction
Act to further
improve programs
• Evaluate clean energy asset ownership to structurally lower costs and lower risk
• Grow our capacity and deploy programs at a much larger scale
• Operationalize equity into programs; utilize SEVI framework in double-down programs
• Assist member agencies evaluating IRA decarbonization policies and program impacts
• Evaluate policies related to the utilization of organized labor in utility-scale projects and decarbonization programs and present options to the Board
Item 3
PRESENTATION
20 4. FINANCE (FY23)
Leverage Balance
Sheet for Structured
Financing and use
financing solutions to
increase impact of
decarbonization
program offerings,
especially to lower-income customers
• Continue building strong financial reserves
• Attract and retain DA customers
• Strategically use balance sheet to advance
our mission; providing innovative financing
solutions to customers, particularly to reach
those with barriers to conventional
programs (e.g., low income, renters)
Item 3
PRESENTATION
21 5. EMPLOYEES (FY23)
Be The Employer
of Choice, &
Increase Staffing
• Attract and Hire New Employees, passionate
about our mission and with excellent job
knowledge
• Build and maintain a high-performance
agency; preserve start-up culture of employee
innovation, engagement, and collaboration
• Develop plans for remote, hybrid and in-person work
Item 3
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 4
PRESENTATION
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Item 4
PRESENTATION
April 10th day-ahead hourly prices
$5/MWh at 4pm
$102/MWh at 8pm
August 7th day-ahead hourly prices
$52/MWh at 9am
$193/MWh at 8pm
(y Grid energy prices vary significantly during the day, month to month, and year to year.
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Item 4
PRESENTATION
In response, SVCE:
procures energy,
hedges and RA
to cover peaks
maintains strong
reserves
But what if SVCE could help shape customer
demand to better match low-cost supply?
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PRESENTATION
Effectively managing demand will be critical in meeting future clean energy and electrification goals.
Past ... Future...
>
Q
Q
2 (/)
E
O
D
co
E
Q
Fossil-based
Predictable capacity
Seasonal price volatility
Mixed fuel
Flat/declining load
Dumb on/off appliances
TOU rates w/'v15% ‘deltas’
Manual control during
9-15 peak events/year
Renewable
Variable capacity
Daily price volatility
All-electric
70%+ load growth
Connected/flexible loads
Dynamic rates
Automated/continuous
optimization & control
4 •
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Item 4
PRESENTATION
Enabling dynamic matching of demand and supply
directly supports SVCE’s mission.
Clean
Affordable Reliable
As the grid becomes more reliant on intermittent
renewables, the ability to shape demand to match
supply boosts grid reliability and affordability
Effectively matching usage with power that is
greenest and lowest-cost improves customer
economics, and helps further advance electrification
5 •
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Item 4
PRESENTATION
‘VPP’ is now shorthand for a variety of ways customers
can be incentivized to shift demand.
• reducepeak demand
when supply is
constrained
« X *
shift/shape demand
to cleaner op
lower-cost hours Demand-Side /
Management /
(DSM) /
k /
\ Demand /
\ Flexibility /
\
(DF) y
6 Item 4
PRESENTATION
(fj Studies are showing connected devices using dynamic pricing and control can shift demand by 5-20% (vs 1-5%).
Centralized vs. Decentralized Demand Response: Evidence from a Field Experiment Figure 8. Average Treatment Effect of Participants by Group and Technology Megan Bailey, David P. Brown, Blake Shaffer, Frank A. Wolak; January 2023 Preliminary and Incomplete. Please do not cite or circulate.
Reforming Retail Rates to
Increase DF - LBNL Study*
> Fully 20% of load is potentially shiftable to time periods associated with low wholesale energy prices and energy curtailment
> By 2030, CA can shift 2-5% of daily load (10-20 GWh) and save $200-$500 million in annual costs associated with curtailing renewable generation > Conclusions currently being debated by stakeholders
‘Lawrence Berkeley National Laboratory (LBNL), "The California Demand Response Study, Phase 3" (2020).
CPUC Perspective: DemandInflexibility Based on Grid Design:
“Historically we designed the electric power system with the assumption that customer demand for electricity was inflexible, and for the majority of the past 140 years that approach made sense. Customer demand was inflexible, and we didn’t have the tools and technology needed to send time-varying rates.” -CPUC Commissioner Darcie L. Houck, Remarks at Exploratory Workshop on Demand Flexibility, May 25, 2021 7 •
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Item 4
PRESENTATION
While promising, deploying dynamic demand-side
management at scale faces many challenges.
How will new products
and services take
advantage of dynamic
energy pricing?
Development of new customer services, tariffs and products savings, convenience, reliability, mitigation of price risk . . .
Simple/seamless customer interface(s), integration of customer devices, data, billing etc.
New business models between utilities, product and service providers, customers
measurement and capture of sufficient energy and capacity value to drive activity
Customer engagement, education and adoption
Equity and access
8 •
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Item 4
PRESENTATION
SVCE is engaged in multiple related proceedings,
service and rate pilots.
Regulatory Proceedings CPUC Demand Flexibility CalFUSE
- California Flexible Unified Signal for Energy
- new real-time rate structures, income-graduated fixed charges CEC Load Management Standard MIDAS
- Market Informed Demand Automation Server
- statewide time-varying rates database
SVCE Pilot Projects in
Operation
GridShift EV -SVCE-branded EV.energy charging application Lights On Silicon Valley -SunRun solar/battery aggregation Electric Home Rate -Time-of-use rate to support electrification Muni battery storage aggregation pilot - 2023
SVCE Pilot Projects Planned
or Under Development
PG&E Real-Time Pricing Pilots - residential & commercial - 2024 PG&E Vehicle to Grid (VGI) Pilots - 2024
9 Item 4
PRESENTATION
In 2024, SVCE will refine our VPP approach and priorities - how can we best enable/accelerate?
Strategic Plan Elements
1) Establish cross-departmental VPP workgroup, document shared vision, provide visibility & coordination of related activities 2) Support range of technical/business/policy requirements for deployment of PG&E’s Real-time Pricing and Vehicle-to-Grid pilots, MIDAS and CalFUSE (ESCR, 4PRO lead) **
3) Conduct cross-departmental RFI/RFP for ‘Customer Engagement Platform for Demand Flexibility’, evaluation of potential strategic partnership(s), and support subsequent launch (DPP, ESCR lead) ** ** will likely require BOD action/approvals in FY2024 10 Item 4
PRESENTATION
In FY24, SVCE will refine our VPP approach and priorities - how can we best enable/accelerate?
Strategic Plan Elements
4) Support development of detailed 'bottoms up’ [2030] load forecast, including impacts of electrification (4PRO lead) 5) Develop cross-departmental financial opportunity analysis for load flexibility v/v capacity and energy value (F&A lead) 6) Coordinate employee participation and learnings from VPP/load flexibility pilots, related vendor offerings (ESCR lead) 11 Item 4
PRESENTATION
Questions
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 5
PRESENTATION
C&l Program Update
SILICON VALLEY
CLEAN ENERGY
Adam Selvin
SVCE Executive Committee
August 25, 2023
The News: SMB Rebates are Live!
Item 5
PRESENTATION
0 SILICON VALLEY
CLEAN ENERGY ABOUT US- GO ELECTRIC -REBATES & OFFERS- RATES & BILLING-Get up to $20,000 in rebates for updating your old gas equipment to new electric equipment. Plus, get an
additional $5,000 if your business is a nonprofit
Small-to-Medium
Business Rebates
Available Now!
Quick Facts
❑
❑
❑
✓
✓
✓
Item 5
PRESENTATION
Rebates for space and water heating electrification
Program structure mirrors FutureFit Homes but modified for the SMB sector Up to $20,000 per project, and $25,000 for nonprofits
Who Qualifies?
Buildings up to 50,000 sq. ft.
Up to 250,000 kWh consumed annually
Up to 25,000 therms consumed annually
~20,000 SMB customers meet these criteria
Rebates can help accelerate electric retrofits of
~7,000 gas-fired HVAC and water heaters in SMBs
All data from 2022 TRC Market Segmentation Study performed for PCE & SVCE. Equipment saturation data from RASS and ACS survey data, costs from local contractor interviews. Data reflects small commercial buildings (<30k SF) only. •
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Item 5
PRESENTATION
Packaged Rooftop Units
(RTUs) with Gas Furnaces
7,000 units in SVCE territory
$2-3k incremental cost for a
Heat Pump (HP) RTU
Equivalent heat pump
technology has existed for
decades
^80% of RTUs already have
enough electrical capacity to
support a heat pump
Gas-fired Storage Water
Heaters
6,500 units in
Small/Medium
Businesses in SVCE
territory
Incremental costs:
$5.5k (Res)
$8k (Comm)
Coming Soon: C&I Offerings
Commercial &
Industrial Strategic
Energy Management
for Decarbonization
Identify, incentivize, and
operationalize decarbonization in
Large C&I customer facilities
Item 5
PRESENTATION
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Item 5
PRESENTATION
What problem
are we solving?
Why pursue
this?
No existing product for C&l
decarbonization
Lacking incentives to reduce
carbon
Unknown opportunities and best
practices around decarbonization
Engage Large C&l Customers in
decarbonization and SVCE
Mission/value prop
High touchpoint with customers
Potential for significant and cost
effective GHG reductions
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Item 5
PRESENTATION
CD C&l Program Design
Customer Solutions Leverage innovative EE program designs Uncover emissions reductions opportunities
Create goals/road mapping
Incent emissions reductions
Electric & gas improvements
Behavioral, Retro-Commissioning, and Operational
Fuel switching
Capital improvements
Increase positive relationships with engaged customers
Save the world
7 Item 5
PRESENTATION
O Strategic Energy Management
Goal Setting
Document customers
targets for energy
reduction, cost
savings, and
environmental impact
Workshops
Educational modules
on energy
management, peak
load shifting, and
electrification
Treasure Hunts
Site visits to assess
current building
operations, energy
usage, operational
practices, and identify
opportunities
No/Low-cost
O&M Projects
Implement low/no
cost behavioral,
retro-commissioning, and
operation measures
Capital Projects
Implement custom
capital EE upgrade
projects and
electrification
Ongoing Technical Support
and Coaching
8 •
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Item 5
PRESENTATION
O Commercial End Uses
Decarbonization Opportunities
New technologies and
approaches are needed
California loading order
Retrofit, Lifecycle, New
Construction ® NW
mo
9 0 500 1,000 1,500 2,000 2,500 3,000 3,500
0.0 M 2.0 M 4.0 M 6.0 M 8.0 M 10.0 M 12.0 M 14.0 M 16.0 M 18.0 M Usage Number of Accounts
Item 5
PRESENTATION
Industrial End Uses
Number of Accounts
Processheat (20%)
worxsnop iviacnmes
(5%)
Pumps (7%)
Air-compressor (9%)
AirConditioning
System(5%)
I otal Annual Gas Usage (therms)
Lighting (9%)
.Electrical Motors
L
(48%)
INDUSTRIAL
10 • Large commercial, industrial,
and public customers with
annual energy usage of 10
million kWh or greater
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Item 5
PRESENTATION
’ Targeted Customer Segments
Industrial sector has a small number of
accounts with huge usage and emissions
Data centers and hospitals also follow this
trend
Office buildings and hospitality are the
second largest in terms of customer count
and usage, followed by retail
Food service is the largest sector in terms
of customer count and usage
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Item 5
PRESENTATION
CD An Intentional Electricity Rate
1^ V
SVCE’s Electrification Discount Rate (E-ELEC)
Enrollment recently surpassed 700 customers
Average generation discount savings of 13%
Approximately 1/3 of participants live in low-to-moderate income areas
Nearly 10% of participants are CARE/FERA customers who
are saving a combined 33% discount off monthly electric bills
Now open to NEM Customers