Staff Report – Item 1h
Item 1h: Receive Updates to Business Electric Vehicle (BEV) Rate Components From: Girish Balachandran, CEO
Prepared by: Peyton Parks, Energy Services Lead
Kaley Dodson, Energy Services Specialist
Date: 2/14/2024
RECOMMENDATION
Receive updates to the Business Electric Vehicle (BEV) rate components and Power Charge Indifference Adjustment (PCIA) from January 10, 2024 Board of Directors meeting.
BACKGROUND
At the December 13, 2023 meeting of the SVCE Board of Directors, the Board adopted a 4% generation rate discount relative to PG&E for calendar year 2024. Following this direction, SVCE staff provided a full accompaniment of final SVCE generation rates for the Board at the January 10, 2024 meeting.
At the time of the January 10th meeting, PG&E was working to finalize both the PCIA and final resulting generation rate for their own Business Electric Vehicle (BEV) rate class. As a result, SVCE’s final BEV generation rate would need to change as PG&E’s generation rate changed in order to maintain the BOD-approved 4% discount. SVCE staff committed to monitor and adjust the resulting final SVCE rates for BEV and return to the Board with the final rates. PG&E made its adjusted rates effective as of February 1, 2024.
BEV rates are only applicable at commercial buildings where electric vehicle charging infrastructure is separately metered from the rest of the building’s load. SVCE currently services less than 60 BEV customer accounts in its territory.
ANALYSIS & DISCUSSION
PG&E had initially included two conflicting PCIA values in its published tariff for BEV when it updated rates on January 1, 2024. PG&E corrected this issue and made the new resulting SVCE generation rates effective on February 1, 2024.
FISCAL IMPACT
The fiscal impact of adopting the adjusted PG&E PCIA and generation rates for the purpose of performing SVCE’s 4% savings calculation to create a final generation rate is negligible.
ATTACHMENTS
1. Voided BEV1 and BEV2 SVCE rate sheets
2. Updated BEV1 and BEV2 SVCE rate sheets
Item 1h
Silicon Valley Clean Energy Medium Commercial
Non-Residential Generation Rates and Generation Service Cost Comparison SVCE Rate
Schedule
Time of Use
Period
SVCE
Generation
Rates1
SVCE
Generation
Service2 PG&E
Generation
Service3 Notes
BEV1 Summer/Winter
PEAK $ 0.29305 $ 0.30313 $ 0.31576 4:00 p.m. to 9:00 p.m.; Every day, including weekends and holidays OFF-PEAK $ 0.11779 $ 0.12787 $ 0.13320 2:00 p.m. to 4:00 p.m. and 9:00 p.m. to 9:00 a.m.; Every day, including weekends and holidays SUPER OFF-PEAK $ 0.09342 $ 0.10350 $ 0.10781 9:00 a.m. to 2:00 p.m.; Every day, including weekends and holidays BEV2S Summer/Winter
PEAK $ 0.31122 $ 0.32235 $ 0.33578 4:00 p.m. to 9:00 p.m.; Every day, including weekends and holidays OFF-PEAK $ 0.11599 $ 0.12712 $ 0.13242 2:00 p.m. to 4:00 p.m. and 9:00 p.m. to 9:00 a.m.; Every day, including weekends and holidays SUPER OFF-PEAK $ 0.09161 $ 0.10274 $ 0.10702 9:00 a.m. to 2:00 p.m.; Every day, including weekends and holidays BEV2P Summer/Winter
PEAK $ 0.30125 $ 0.31238 $ 0.32540 4:00 p.m. to 9:00 p.m.; Every day, including weekends and holidays OFF-PEAK $ 0.11311 $ 0.12424 $ 0.12942 2:00 p.m. to 4:00 p.m. and 9:00 p.m. to 9:00 a.m.; Every day, including weekends and holidays SUPER OFF-PEAK $ 0.08988 $ 0.10101 $ 0.10522 9:00 a.m. to 2:00 p.m.; Every day, including weekends and holidays VOID
Item 1h
Attachment 1
©
SILICONVALLEY
CLEAN ENERGY
Silicon Valley Clean Energy Medium Commercial
Non-Residential Generation Rates and Generation Service Cost Comparison SVCE Rate
Schedule
Time of Use
Period
SVCE
Generation
Rates1
SVCE
Generation
Service2
PG&E
Generation
Service3 Notes
BEV1 Summer/Winter
PEAK $ 0.29388 $ 0.30396 $ 0.31662 4:00 p.m. to 9:00 p.m.; Every day, including weekends and holidays OFF-PEAK $ 0.11862 $ 0.12870 $ 0.13406 2:00 p.m. to 4:00 p.m. and 9:00 p.m. to 9:00 a.m.; Every day, including weekends and holidays SUPER OFF-PEAK $ 0.09424 $ 0.10432 $ 0.10867 9:00 a.m. to 2:00 p.m.; Every day, including weekends and holidays BEV2S Summer/Winter
PEAK $ 0.31126 $ 0.32239 $ 0.33582 4:00 p.m. to 9:00 p.m.; Every day, including weekends and holidays OFF-PEAK $ 0.11603 $ 0.12716 $ 0.13246 2:00 p.m. to 4:00 p.m. and 9:00 p.m. to 9:00 a.m.; Every day, including weekends and holidays SUPER OFF-PEAK $ 0.09165 $ 0.10278 $ 0.10706 9:00 a.m. to 2:00 p.m.; Every day, including weekends and holidays BEV2P Summer/Winter
PEAK $ 0.30129 $ 0.31242 $ 0.32544 4:00 p.m. to 9:00 p.m.; Every day, including weekends and holidays OFF-PEAK $ 0.11315 $ 0.12428 $ 0.12946 2:00 p.m. to 4:00 p.m. and 9:00 p.m. to 9:00 a.m.; Every day, including weekends and holidays SUPER OFF-PEAK $ 0.08992 $ 0.10105 $ 0.10526 9:00 a.m. to 2:00 p.m.; Every day, including weekends and holidays Item 1h
Attachment 2
©
SILICONVALLEY
CLEAN ENERGY
Staff Report – Item 1i
Item 1i: Executive Committee Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Larry Klein, Executive Committee Chair
Date: 2/14/2024
At the first meeting of the 2024 Executive Committee on January 23rd, Executive Committee members appointed a Chair and Vice Chair of the committee, selected a regular meeting schedule for 2024, received an introduction to SVCE’s Load Management Standards compliance plan obligation, and heard a presentation from staff on the Silicon Valley Building Electrification: Stronger Together (BEST) program.
The committee appointed me as Chair, and Director Bryan Mekechuk as Vice Chair of the Executive Committee for 2024. A regular meeting schedule was established of the fourth Fridays of the month at 10:00 a.m., with a July summer recess. Some meetings were flagged by members as low attendance, which Sr.
Executive Assistant and Board Clerk Andrea Pizano will poll to confirm quorum.
Citlalli Sandoval, Senior Regulatory Advisor, and Maren Wenzel, Senior Manager of Policy and Regulatory Analysis presented an introduction to the Load Management Standards Compliance Plan Obligation. Their presentation outlined the objectives of the Load Management Standards, reviewed past demand management methods, and provided information on the California Energy Commission’s compliance plan requirement. Staff will be returning to the Executive Committee this month to discuss the content of this first Load Management Standards Compliance Plan prior to bringing to the Board of Directors for approval in March.
Eric Rodriguez, Decarbonization Programs and Policy Program Lead, and Zoe Elizabeth, Deputy Director of Decarbonization Programs and Policy, provided a presentation on the Silicon Valley Building Electrification:
Stronger Together program (SVBEST), which is SVCE’s umbrella initiative to develop and organize the strategic partnerships necessary to prepare our region for comprehensive building electrification.
Materials from this meeting can be found on SVCE’s website: SVCE Executive Committee Meeting, January 23, 2024
The next meeting of the Executive Committee will be February 23, 2024 at 10:00 a.m.; materials will be posted no later than 72 hours in advance of the meeting.
Item 1i
Staff Report – Item 1j
Item 1j: California Community Power Report
To: Silicon Valley Clean Energy Board of Directors
From: Girish Balachandran, CEO
Date: 2/14/2024
Per direction from the SVCE Board on December 9, 2020 for the CEO to provide a report of the ongoing activities of California Community Power (CC Power) after each of its meetings, this is to report CC Power held a regular board meeting on Wednesday, January 17, 2024.
Attached is a summary report from General Manager Alex Morris; materials from the January board meeting can be found here on the CC Power website: CC Power Meeting, 1/17/24 The next meeting of the board will be February 28, 2024 at 1:00 p.m.; meeting materials can be found on the CC Power website: https://cacommunitypower.org/meetings/ ATTACHMENTS:
1. CA Community Power Board Meeting Summary from General Manager Alex Morris, January 17, 2024 Item 1j
SILICON VALLEY \3/ CLEAN ENERGY
California Community Power
901 H St, Ste 120 PMB 157, Sacramento, CA 95814 | cacommunitypower.org A Joint Powers Agency whose members are:
Central Coast Community Energy | CleanPowerSF | East Bay Community Energy | MCE | Peninsula Clean Energy | Redwood Coast Energy Authority | San José Clean Energy | Silicon Valley Clean Energy | Sonoma Clean Power | Valley Clean Energy
TO: CC Power Board of Directors and Alternates DATE: 1/23/2023 FROM: Alex Morris – General Manager
SUBJECT: Report on CC Power Regular Board of Directors Meeting – December 17, 2023 The CC Power Board of Directors held its regularly scheduled meeting on January 17, 2023, via Zoom. Details on the Board packet, presentation materials, and public comment letters can be found under the Meetings tab at the CC Power website: Meetings and Agendas – ca community power Highlights of the meeting included the following:
• Matters subsequent to posting the Agenda. None.
• Public Comment. None.
• Consent Agenda - The Board approved the following items:
o Minutes of the Regular Board Meeting held on December 13, 2023 • Regular Agenda Voting Items:
o The Board adopted Resolution 24-01-01, electing Geof Syphers, CEO of Sonoma Clean Power, as Chair of CC Power, and Lori Mitchell, Director of San Jose Clean Energy, as Vice-Chair of CC Power for 2024
o The Board adopted Resolution 24-01-02 appointing Mitch Sears, Executive Officer of Valley Clean Energy, as Treasurer, and Rob Shaw, CEO of Central Coast Community Energy, as Board Secretary of CC Power for 2024
o The Board adopted Resolution 24-01-03, adjusting the dates of the pre-scheduled February, April, and June 2024 CC Power Board Meetings in order to avoid conflicts with Holidays and Cal-CCA events
o The Board adopted Resolution 24-01-04, Approval of California Community Power Exploration and Solicitation for Build-Own-Transfer Projects. This resolution authorizes CC Power to formulate and execute a project, if sufficient members participate to cover costs not to exceed $440,000 in total. Funds will be held in balancing accounts and unused funds can be returned or reapplied. This project authorization follows from discussions about the Inflation Reduction Act and possible CCA benefits available from a Build-Own-Transfer project, for which any willing CC Power members could pursue project ownership and bond issuance through CC Power. This Resolution only authorizes exploration of project bids through a competitive solicitation, yielding a short-list of candidate projects. After a short-list is determined, the Board may consider further actions regarding shortlisted projects.
Item 1j
Attachment 1
2 • General Manager Report – the Board heard several updates, including on 2024-2025 strategic planning and next steps. The strategic planning process will involve interviews with members during Q1 2024 to understand priorities and to develop proposed 2024- 2025 work-plans and budgets. As part of this, CC Power will consider updates to the multi-year CC Power Strategic Plan. • Closed Session – the Board discussed General Manager performance and 2024 goals.
Item 1j
Attachment 1
Staff Report – Item 1k
Item 1k: Additional Committee Reports
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Andrea Pizano, Sr. Executive Assistant and Board Clerk Date: 2/14/2024
There are no reports for the Finance and Administration Committee and Audit Committee as they have not met since 2023.
The next meeting of the Finance and Administration Committee and Audit Committee will be held in late February, based on member availability.
Item 1k
SILICON VALLEY
CLEAN ENERGY
Staff Report – Item 2
Item 2: CEO Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Girish Balachandran, CEO
Date: 2/14/2024
REPORT
Staff Updates
Emily Muniz joined SVCE January 22, 2024 as a Communications Specialist supporting the Marketing and Communications team. Emily’s background includes media pitching and content creation from her time at an SF-based communications and marketing firm, and experience leading restoration programs, collaboration with key stakeholders, and public outreach campaigns from her most recent role at a recreation and park district. She earned her degree in environmental science and sustainability from Cornell University with a minor in policy and governance.
Kris Van Vactor, formerly SVCE’s Wholesale Energy Markets Manager, will be SVCE’s new Director of Power Resources overseeing planning, procurement, portfolio management, load and resource scheduling and operations, settlements, contract management and compliance. Kris has over 20 years of experience in the industry of which he spent 13 years at SoCal Edison where he helped bring on utility scale and distributed resources, worked on regulatory and policy integration and CAISO settlements. At SVCE he has been leading the front office team responsible for portfolio management, procurement and operations of resources in the wholesale market.
Zak Liske, formerly SVCE’s Senior Manager of Operations, has been promoted to Deputy Director of Power Resources. In this role, he will retain many of his existing responsibilities including contract management, settlements and compliance within the Power Resources Department but will also report to Monica, Amrit and Don to lead and/or support many special projects including implementation of Business Process Optimization systems, IT Governance, power prepays and C/I custom products.
Personnel Officer Update
We currently have one open position for HR Payroll Analyst, and two offers accepted and in pre-employment process for the roles of Senior Program Specialist and Data Engineer.
Job descriptions and applications can be found on SVCE’s website: Current Job Openings CalCCA Annual Meeting
This year’s CalCCA annual conference is scheduled for April 16-18, 2024 in San Jose. For Board members who are unable to attend the full conference, there will be a scheduled elected officials lunch. Board members who are interested in attending should reach out to Board Clerk Andrea Pizano for registration.
Winter Reading: Clear Thinking book
In an effort to keep the tradition of suggesting good reads, board members will receive a copy of Clear Thinking Item 2
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 2 Agenda Date: 2/14/2024
by Shane Parrish. This book provides tools that can be used in both your professional and personal lives to recognize opportunities and identify helpful decision-making processes. As a board member, I believe this book will also help with good governance and communication. All members of SVCE staff have also received a copy.
CEO Agreements Executed
The following agreements have been executed by the CEO, consistent with the authority delegated by the Board:
1) 3Degrees, Amendment: Support in Generating Low Carbon Fuel Standard Credits, date extended to 5/31/24
2) Arup, Agreement: Data Analytics Support, 12/14/23 – 12/13/28; agreement approved by the SVCE Board of Directors at the 12/13/23 Board of Directors meeting 3) PFM Asset Management, Agreement: Investment Advisory Services, not to exceed $30,000, 1/9/24 – 1/25/24
4) Richard Heath and Associates, Agreement: Service Optimization Guides for Building Officials and Contractors, not to exceed $74,879, 1/15/24 – 8/31/24
5) City of Cupertino, Amendment: Video Production Services, amended terms and conditions 6) Tierra Resource Consultants, LLC, Agreement: Innovative Finance Analysis and Whitepaper, not to exceed $94,500, 1/11/24 – 8/21/24
7) Patricia LaFleur, Amendment: Office Mural Painting, not to exceed $13,300 8) ADM, Amendment to Task Order: Member Agency Working Group (MAWG) Engagement Evaluation 9) ADM, Amendment to Task Order: Customer Awareness Survey and eHub Evaluation, removed $16,090 from NTE, new NTE $89,840
10)ADM, Amendment to Task Order: Electrification Reach Codes Study 11) Creative F5, Consent to Assignment Agreement: Graphic and web design security and maintenance 12) Nicole Arlette Hirsch, PhD, Amendment: Diversity, Equity & Inclusion Training, not to exceed $46,179 13) SMUD, Task Order: Programs Portfolio Tool Support, not to exceed $33,600, 12/18/23 – 12/31/24 14) San Jose Conservation Corps, Agreement: Mobile Demonstration Home, not to exceed $50,000, 1/29/24 – 12/31/24
15) SMUD, Amendment: Task Order (1-12) consolidation and close out 16) NewGen Strategies & Solutions, Amendment: Advice and Expert Testimony; amendment of terms 17) County of Santa Clara, Agreement: Community Resilience Program – Capital Projects Agreement, not to exceed $229,997, expires 12/31/24
Item 2
CEO Power Supply Agreements Executed
Counterparty Name Execution/Effective
Date Transaction Type Product Start Date End Date Notional Value Morgan Stanley 1/17/2024 Purchase Carbon-Free Energy 4/1/2024 12/31/2024 $1,633,402.76 This agreement is included in the Board packet as Appendix A.
Item 2
SILICON VALLEY
CLEAN ENERGY
Presentations & Relevant Meetings Attended by CEO
- Participated in CalCCA Monthly board and executive meetings - 1/17/24, CC Power Board Meeting (meeting report included on Consent Calendar) Presentations from Staff
- 1/13/24: Silicon Valley Youth Climate Action’s Green New Year Celebration. Presentation by Monica Padilla, COO and Director of Power Resources
ATTACHMENTS
1. Clean Power Update, February 2024
2. Energy Services & Community Relations Update, February 2024
3. Regulatory and Legislative Update, February 2024
4. Agenda Look Ahead, February 2024 – June 2024
Item 2
SILICON VALLEY \3/ CLEAN ENERGY
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 2
Attachment 1
Clean Power Update, February 2024
SILICON VALLEY
CLEAN ENERGY
SVCE Board Meeting
February 14, 2024
CEO Report
Clean Power Update
•
•
•
•
•
•
•
•
•
•
•
•
Item 2
Attachment 1
Clean Power Update, February 2024
CD Clean Long-term Power Agreements
SACRAMENTO Q g GEOTHERMAL
BATTERY STORAGE
X SOLAR + STORAGE
X. SOLAR POWER
• WIND GENERATION
$3.7B+ in commitments
21 PPAs signed
18 new build projects
896 MW of Renewable Power
1,845 MWh of Battery Storage
7 Projects now delivering to SVCE
meeting "33% of energy needs:
COSO geothermal - January 2022
Slate Solar + Storage -January 2022
Casa Diablo geothermal-September 2022
Mountain View wind - July 2022
Rabbitbrush Solar + Storage -October 2022
Terra-Gen Wind - January 2023
Yellow Pine Solar + Storage - July 2023
2 Seller Project Name Technology Generation MW
Storage
MW Storage MWh
Approximate % of Annual
load in 2030
Term
(years)
Lifetime Not to
Exceed Authority
(MM$)
SVCE Board
Approval Status
1 MN8 Slate Solar + Storage 93 46.5 186 6.2% 17 $198 Oct-18 Online 2 Ormat Casa Diablo Geothermal 7 1.4% 10 $43 Feb-20 Online 3 Atlantica Coso Geothermal 43.8 6.1% 15 $331 Mar-20 Online 4 Leeward Rabbitbrush Solar + Storage 40 8 20 2.9% 15 $64 Apr-20 Online 5 NextEra Yellow Pine Solar + Storage 50 26 104 3.8% 20 $128 May-20 Online 6 Avantus Aratina Solar + Storage 80 50 200 6.3% 20 $368 Jun-20 Pre-construction 7 174 Power
Global Atlas Solar 50 3.6% 10 $32 Jan-21 Pre-construction 8 SB Energy Angela Solar + Storage 20 10 40 1.4% 15 $35 Mar-21 Pre-construction 9 AES Mountain View Wind 33.3 3.1% 20 $128 Apr-21 Online 10 Origis San Luis West Solar + Storage 62.5 15.625 62.5 3.9% 15 $132 Apr-21 Pre-construction 11 Clearway Victory Pass Solar + Storage 100 25 100 7.6% 15 $173 May-21 Construction 12 Terra-Gen Cameron Crest Wind 77.7 4.6% 15 $150 May-21 Online 13 Rev Renewables Tumbleweed
Long Duration
Storage 15.9375 127.5 15 $100 Feb-22 Pre-construction
14 Onward Goal Line
Long Duration
Storage 14.2 113.6 15 $100 Mar-22 Pre-construction
15 Ormat Geothermal Portfolio Geothermal 16.75 4.2% 20 $256 Jun-22 Pre-construction 16 OME Fish Lake Geothermal 1.82 0.4% 20 $30 Jun-22 Pre-construction 17 AES Baldy Mesa (RA-only) Storage 0 75 300 10 $81 Sep-22 Construction 18 MRP Hanford Thermal + BESS 99.4 131.4 131.4 12 $280 Apr-23 Pre-construction 19 NextEra Grace Solar 120 0 8.3% 15 $286 Aug-23 Pre-construction 20 NextEra Yellow Pine III Storage 0 115 460 15 $420 Aug-23 Pre-construction 21 Pattern SunZia Wind 100 0 0 7.6% 15 $361 Nov-23 Pre-construction Item 2
Attachment 1
Clean Power Update, February 2024
•
•
•
•
•
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Item 2
Attachment 1
Clean Power Update, February 2024
Clean Energy Resources Online Progress
as of 2/7/2024
F
2024 -Q1
1 •Victory Pass Solar + Storage: Construction mode- delayed Angela Solar + Storage: Pre-construction- delayed
2024 -Q2 Baldy Mesa (RA-Only Storage): Construction mode 2024 -Q4 •Hanford BESS on Peaker: Pre-construction
2025 -Q2 •Goal Line Long Duration Storage: Pre-construction •Aratina Solar + Storage: Pre-construction - delayed
•San Luis West Solar + Storage: Pre-construction - delayed 2025 -Q3+
Fish Lake Geothermal: Pre-construction
Ormat Geothermal Portfolio: Pre-construction
Tumbleweed Long Duration Storage: Construction mode
Atlas Solar: Pre-construction - delayed
Yellow Pine III Storage: Pre-construction
Grace Solar: Pre-construction
SunZia Wind: Pre-construction
Item 2
Attachment 1
Clean Power Update, February 2024
CA
RPS
Requirements
SVCE Progress Toward RPS Requirements
CALIFORNIA RPS REQUIREMENTS vs $VCE PROJECTED/REALIZED RPS 40% of SVCE’s total load is
2021
2023
Yellow Pine I
being met
by long-term
projects
Rabbitbrush
Mountain View
Diablo
Coso
Slate
Terra-Gen
2025
2030
Item 2
Attachment 1
Clean Power Update, February 2024
SVCE Has Contracted 896 MWh of Clean
Generation Capacity
|Geothermal Solar Wind
Project Name 6
Item 2
Attachment 1
Clean Power Update, February 2024
SVCE Battery Storage Projects
Stand Alone Storage
Long Duration Storage
Solar + Storage
Hybrid Storage
0 SVCE Has 1,845 MWh of Clean Storage
Item 2
Attachment 1
Clean Power Update, February 2024
BESS: 25 MW
Will meet approx. 8% of SVCE’s load
Developer: Clearway
Riverside County, CA
PV: 100 MW
CD Victory Pass Solar + Storage
COD in Q12024
8 Item 2
Attachment 1
Clean Power Update, February 2024
1 1. Outreach Events & Sponsorships
Date Sponsorship Location
1/31/2024 SV Reads Kick-Off
6:00 p.m. – 7:00 p.m.
Tabling
De Anza College VPAC
21250 Stevens Creek Blvd
Cupertino, CA 95014
2/12/2024 Sunnyvale Neighborhoods Presentation
7:00 p.m. – 8:30 p.m.
Presentation
Virtual
2/21/2024 SV Reads Author Talk on Climate
10:00 a.m. – 12:00 p.m.
Attendance and tabling
The Tech Interactive
201 S Market St
San Jose, CA 95113
2/24/2024 SV Reads Story Time at Milpitas Library
11:00 a.m. – 12:00 p.m.
Attendance and tabling
Milpitas Library
160 N Main St
Milpitas, CA 95035
3/1/2024 JVSV State of the Valley
8:30 a.m. – 12:30 p.m.
Attendance and sponsorship
SJSU Diaz Compean Student Union, 2nd Floor Ballroom
211 South 9th Street
San Jose, California 95192
Item 2
Attachment 2
ESCR Update, February 2024
2 1. Outreach Events & Sponsorships (cont.)
Date Sponsorship Location
3/7/2024 Silicon Valley Central Chamber Mayors’
Breakfast
7:30 a.m. – 10:30 a.m.
Attendance
Embassy Suites by Hilton Milpitas Silicon Valley
901 East Calaveras Boulevard
Milpitas, CA 95035
Item 2
Attachment 2
ESCR Update, February 2024
3 Participation Rate
Overall Participation
Rate
Residential 96.19%
96.23%
Commercial 96.62%
2. Customer Participation
Item 2
Attachment 2
ESCR Update, February 2024
SILICON VALLEY
CLEAN ENERGY
4 3. DIY Energy Savings Toolkit Premium
Items and Sweepstakes
SVCE is holding two promotions to increase DIY
Toolkit check-outs in 2024.
1. DIY Toolkit Premium Items: Every second
month starting in February, SVCE will release a
new Premium energy saving tool to all library
branch toolkits. Items include smart power
strips and smart LED bulbs.
2. DIY Toolkit Sweepstakes: Every 3 months,
starting in March, SVCE will hold a Sweepstakes
to giveaway big-ticket items to Toolkit winners.
Items include smart thermostats and a portable
induction cooktop.
Item 2
Attachment 2
ESCR Update, February 2024
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5 4. Press Release & Media
Press Releases
• Silicon Valley Clean Energy Sets 2024 Electric Generation Rates, Press Release, 01-09-24 • Silicon Valley Clean Energy Board of Directors Elects Chair and Vice Chair for 2024, Press Release, 01-17-24 • Residents Claim $2.8M in Home Upgrade Rebates from Silicon Valley Clean Energy, Press Release, 01-23-24 News Coverage
• Sunnyvale green energy nonprofit names new CEO, The Mercury News, 12-23-23 • Community News - Clean Energy Grants, The Mercury News, 12-31-23 • Silicon Valley Clean Energy CEO named Champion of the Year, The Mercury News, 01-07-24 • Grants for good, elESTOQUE, 01-24-24
• Town Hall: Getting Ready for Clean Buildings w/SPUR, KALW, 01-31-24 • 2024 Silicon Valley Power 100, Silicon Valley Business Journal, 02-02-2024 • Saratoga councilmember named chair of clean energy nonprofit, The Mercury News, 02-04-24 Item 2
Attachment 2
ESCR Update, February 2024
6 4. Press & Media (continued)
New Coverage (continued)
• Local Scene: Rebates available to upgrade to electric appliances, The Morgan Hill Times, 02-01-24 • FutureFitting homes, The Mercury News, 02-04-2024
Media Mentions
• San Mateo County's Peninsula Clean Energy details $68 million reinvestment project, Mountain View Voice, 01-01-24
• Opinion: A dose of sunshine, caffeine and optimism, Palo Alto Online, 01-13-24 • Model State Building Code for Equitable Electric Vehicle Charging in Multi-Family Housing, Enterprise Viewpoint, 01-15-24
• Meet the District 5 candidates looking to fill a seat on the Santa Clara County Board of Supervisors, Mountain View Voice, 01-18-2024
• Battery facility to replace Ice-Plex in Escondido, The San Diego Union-Tribune, 01-20-24 • Campbell breaks ground on new police station, San Jose Spotlight, 01-27-24 Item 2
Attachment 2
ESCR Update, February 2024
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 2
Attachment 3
SVCE Leg and Reg Update, February 2024
SVCE Legislative and
Regulatory Update
February 14, 2024
Item 2
Attachment 3
SVCE Leg and Reg Update, February 2024
CD Policy Updates
Regulatory Update:
1. Integrated Resource Planning
2. Resource Adequacy
3. Energization
Legislative Update:
1. Governor’s January Budget Proposal
2 2024 Legislative Calendar
2 Item 2
Attachment 3
SVCE Leg and Reg Update, February 2024
Regulatory
Update
Item 2
Attachment 3
SVCE Leg and Reg Update, February 2024
Key Regulatory Activities
Activity Purpose Status
Integrated Resource
Planning
(R.20-05-003)
CPUC planning proceeding to
ensure LSEs are collectively on
track to meet the State's clean
energy and reliability goals.
On January 10th, the CPUC issued a Proposed Decision to adopt the 2023 Preferred System Plan (PSP) based on LSEs individual 2022 IRPs. The plan achieves a less than 25 million metric ton (MMT) electricity sector GHG target by adding over 100 GW of new capacity by 2045. The PD adopts most LSEs individual plans, including SVCE's.
In addition to adoption of the PSP, the Proposed Decision would allow LSEs to further extend the online date for Long Lead Time resources (geothermal and long duration storage) for Mid-term Reliability (MTR) procurement to 2031. If LSEs use the extension they must procure generic resources to bridge the capacity to meet their 2028 obligations.
Resource Adequacy
(R.23-10-011)
Oversees the Resource
Adequacy programs,
considers program
refinements and establishes
forward looking resource
adequacy procurement
obligations
On January 19th stakeholders filed proposals for Track 1 of the Resource Adequacy proceeding. Issues for Track 1 include both Slice of Day implementation refinements and RA penalty reform. SVCE worked with CaICCAto file comments. CaICCA's comments proposed a temporary system RA penalty (through 2027) to help mitigate compliance risk due to both tight market conditions and likely challenges stemming from the transition to Slice of Day. CaICCA also requested the Commission request FERC, CAISO and the CAISO's Department of Market Monitoring investigate the RA capacity market to ensure just and reasonable rates.
In February, Energy Division Staff is expected to release a report on the Slice of Day test year. Shortly after a workshop will be held to review party proposals which will be followed by a comment period.
Order Instituting
Rulemaking to Establish
Energization Timelines
(R.24-01-018)
To establish timely energization
timelines.
The CPUC has adopted a new Order Instituting Rulemaking to implement the provisions adopted by Senate Bill 410 and Assembly Bill 50, which require the CPUC to establish reasonable average and maximum target energization time periods, as well as a procedure for customers to report energization delays. SVCE plans to engage in the development of these new timelines and will be monitoring the new rulemaking's developments.
Item 2
Attachment 3
SVCE Leg and Reg Update, February 2024
Legislative
Update
5 Item 2
Attachment 3
SVCE Leg and Reg Update, February 2024
Governor's January Budget Proposal Highlights
Governor’s current proposal uses cuts, deferrals and fund swaps to close a record $38B deficit. Final Budget to be adopted in June.
Program Funding Amount
Equitable Building Decarb $283M cut and $87M fund swap from Cap and Trade
Equitable At-Home Charging, Clean Cars 4 All,
ZEV Fueling Infrastructure Grants
$600M delay, $218.5M fund shift from Cap and
Trade to ZEV Fueling Infrastructure Grants
Extreme Heat and Community Resilience
Program
$40M cut
Electricity Supply Reliability Reserve Program $55M delay Long Duration Storage $57M shift from Cap and Trade
Clean Energy Reliability Investment Plan $400M delay
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Item 2
Attachment 3
SVCE Leg and Reg Update, February 2024
1 Key 2024 State Legislative Milestones
January 3—Legislature Reconvenes
January 12—Last day for policy committees to hoar fiscal bills from their house last year January 19—Last day to submit bill requests to Legislative Counsel; last day for committees to hoar and report to the floor bills introduced last year
January 31—Last day for each house to pass bills introduced last year February 16 - Last day for bills to be introduced
April 26 -Last day for policy committees to vote on fiscal bills May 17 - Last day for fiscal committees to hear bills introduced in that house May 24- Last day for each house to pass bills introduced in that house June 15 -Budget bill must pass by midnight
July 3 - Last day for policy committees to vote on bills August 16 - Last day for fiscal committees to vote on bills August 31- Last day for each house to pass bills
September 30 - Last day for Governor to sign bills
7 SVCE Agenda Look Ahead
February 2024 - June 2024
February 2024 March 2024 April 2024 May 2024 June 2024
Board of Directors, February 14: Board of Directors, March 13:
Consent:
Minutes
January 2024 Treasurer Report
Scheduling Coordinator Services Agreement
Committee Reports
Regular Calendar:
Mid-Year Budget
Audited Financial Statements
Approve SVCE's Load Management Standards
Compliance Plan
MRP/Gas Peaker Community Investment
Policy
Board of Directors, April 10:
Consent:
Minutes
February 2024 Treasurer Report
Committee Reports
Regular Calendar:
TBD
Board of Directors, May 8:
Consent:
Minutes
March 2024 Treasurer Report
Committee Reports
Regular Calendar:
TBD
Board of Directors, June 12:
Consent:
Minutes
April 2024 Treasurer Report
Committee Reports
Regular Calendar:
Introduction to SVCE Budget Framework
Executive Committee, Feb. 23:
Preview of SVCE’s Load Management Standards
Compliance Plan
MRP/Gas Peaker Community Investment Policy
Executive Committee, March 22:
Program Snapshot
Executive Committee, April 26:
Program Snapshot
Executive Committee, May 24:
Program Snapshot
Intro to 2025 Strategic Plan (Focus Areas)
Executive Committee, June 28:
Program Snapshot
Audit Committee - TBD
Finance & Administration Committee - TBD
2/8/24
Item 2
Attachment 4
—
— — —
Staff Report – Item 3
Item 3: Appoint 2024 Board Committee Members
From: Girish Balachandran, CEO
Prepared by: Andrea Pizano, Sr. Executive Assistant and Board Clerk Date: 2/14/2024
RECOMMENDATION
Staff recommends the Board appoint members to the 2024 Legislative Ad Hoc Committee, Audit Committee, and Finance and Administration Committee through February 2025.
BACKGROUND
SVCE’s Joint Powers Authority Agreement, Article 4, Section 4.7 Commissions, Board and Committees, states, “The Board may establish any advisory commissions, boards, and committees as the Board deems appropriate to assist the Board in carrying out its functions and implementing the CCA Program, other energy programs and the provisions of this Agreement.” Per SVCE’s Operating Rules and Regulations, the term of office for each committee established by the Board shall be one year. There are no limits on the number of terms that a Director may serve on a committee.
ANALYSIS AND DISCUSSION
2024 Legislative Ad Hoc Committee – *New Ad Hoc Committee for 2024 This ad hoc committee was created on November 8, 2023 to address the following policy areas:
• Affordability & Rates,
• Climate Change Mitigation/Fuel Switching,
• Clean, Reliable Grid,
• Competitive Equity/Do No Harm,
• Health Impact/Safety, and
• Equity
The committee meets as needed (based on member availability), and is comprised of up to six Directors or Alternate Directors of the Board. An alternate Director may not attend a Committee meeting on behalf of an absent regular Director. No more than one Committee member shall represent a particular member agency.
Audit Committee
The purpose of the Audit Committee is to oversee the accounting and financial reporting process and the audit of SVCE’s financial statements by the independent auditor. The Audit Committee meets twice a year and as needed, is comprised of a minimum of three and up to six Directors, Alternate Directors, or member agency Composition Expressed Interest for 2024
• Not more than six Directors/Alternate Directors of the Board (6 total)
• No more than one eligible Committee Member shall represent their respective Member Agency
• Alternates to appointed committee members is prohibited
1. Dir. Elliot Scozzola, Campbell
2. Dir. Zach Hilton, Gilroy
3. Dir. Bryan Mekechuk, Monte Sereno
4. Dir. Yvonne Martinez Beltran, Morgan Hill
5. Alt. Dir. Chuck Page, Saratoga
6. Dir. Larry Klein, Sunnyvale
Item 3
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 3 Agenda Date: 2/14/2024
staff nominated by a Board member, and no more than one eligible committee member shall represent their respective member agency.
Composition 2023 Roster Expressed Interest for 2024
• Minimum of three and no more
than six Directors of the Board or
appointees by the Board (3-6
total)
• Board Members, Alternate Board
Members, and member agency
staff nominated by a Board
Member can serve
• No more than one eligible
Committee Member shall
represent their respective Member
Agency
• Alternates to appointed committee
members is prohibited
1. Committee Chair Bryan
Mekechuk, Monte Sereno
2. Committee Vice Chair Sheila
Mohan, Cupertino
3. Alt. Dir. Sergio Lopez, Campbell
4. Harjot Sangha, Finance Director
for the City of Gilroy
5. Alt. Dir. Murali Srinivasan
1. Dir. Bryan Mekechuk, Monte
Sereno
2. Dir. Sheila Mohan, Cupertino
3. Alt. Dir. Sergio Lopez, Campbell
4. Harjot Sangha, Finance Director,
Gilroy *City of Gilroy Staff
Member nominated by Dir. Hilton
Finance and Administration Committee
The purpose of the Finance and Administration Committee is to provide financial and administrative oversight of SVCE. Tasks include budgeting, financial reporting, monitoring of internal controls, review financial and administrative policies and oversee investment strategies. The Finance and Administration Committee meets quarterly and as needed, is comprised of a minimum of three and up to six Directors, Alternate Directors, or member agency staff nominated by a Board member, and no more than one eligible committee member shall represent their respective member agency.
Composition 2023 Roster Expressed Interest for 2024
• Minimum of three and no more
than six Directors of the Board or
appointees by the Board (3-6
total)
• Board Members, Alternate Board
Members, and member agency
staff nominated by a Board
Member can serve
• No more than one eligible
Committee Member shall
represent their respective Member
Agency
• Alternates to appointed committee
members is prohibited
1. Committee Chair Hung Wei,
Cupertino
2. Committee Vice Chair Sally
Meadows, Los Altos
3. Dir. Elliot Scozzola, Campbell
4. Dir. Margaret Abe-Koga,
Mountain View
5. Dir. Tina Walia, Saratoga
1. Alt. Dir. Hung Wei, Cupertino
2. Dir. Elliot Scozzola, Campbell
3. Dir. Pat Showalter, Mountain
View
4. Alt. Dir. Murali Srinivasan,
Sunnyvale
Attached are two documents: 1) the 2024 Committee Summary Snapshot, which outlines who has expressed interest in each committee for 2024, and 2) a 2024 SVCE Assignments and Committee Interests document outlining our board roster and the assigned committees and interests identified for each member.
STRATEGIC PLAN
Not applicable.
Item 3
Agenda Item: 3 Agenda Date: 2/14/2024
ALTERNATIVE
There is no alternative to selecting members of SVCE’s committees.
FISCAL IMPACT
No fiscal impact as a result of selecting SVCE’s committee members.
ATTACHMENTS
1. 2024 Committee Summary Snapshot
2. 2024 SVCE Assignments and Committee Interests
Item 3
2/7/24
2024 Legislative Ad Hoc Committee Roster Member Agency
Elliot Scozzola Campbell
Zach Hilton Gilroy
Bryan Mekechuk Monte Sereno
Yvonne Martinez Beltran Morgan Hill
Chuck Page Saratoga
Larry Klein Sunnyvale
2024 SVCE Committee Summary Snapshot
Three committees up for appointments:
1. 2024 Legislative Ad Hoc Committee – *New Committee
Description:
Anticipated activities include:
General advocacy strategy development for state and federal activities;Feedback on priorities for legislation and the state budget; and Advocacy on key legislation.
The Policy Areas for 2024 include:
1. Affordability & Rates,
2. Climate Change Mitigation/Fuel Switching,
3. Clean, Reliable Grid,
4. Competitive Equity/Do No Harm,
5. Health Impact/Safety, and
6. Equity.
Membership:
No more than six members of the board.
Meeting Frequency:
As needed.
Item 3
Attachment 1
©
SILICONVALLEY
CLEAN ENERGY
2024 SVCE Committee Snapshot
2/7/24
2. Finance & Administration Committee
Description:
Works with SVCE staff on items related to financial and administrative issues that impact the agency.
Membership:
No fewer than three members and no greater than six members; Can be Board members, Alternate Board members, or a Board appointed member agency staff member.
No alternate directors may attend a committee meeting on behalf of an absent primary appointed director. No more than one Committee member shall represent a particular member agency.
Meeting Frequency:
Quarterly and as-needed (First meeting expected end of February 2024) 2024 Finance and Administration Committee Roster Member Agency Elliot Scozzola Campbell
Hung Wei Cupertino
Pat Showalter Mountain View
Murali Srinivasan Sunnyvale
3. Audit Committee
Description:
Works with SVCE staff on the initiation and receiving of the annual audit Membership:
No fewer than three members and no greater than six members; Can be Board members, Alternate Board members, or a Board appointed member agency staff member.
No alternate directors may attend a committee meeting on behalf of an absent primary appointed director. No more than one Committee member shall represent a particular member agency.
Meeting Frequency:
Twice yearly and as needed (First meeting expected in February 2024) 2024 Audit Committee Roster Member Agency
Sergio Lopez Campbell
Sheila Mohan Cupertino
Bryan Mekechuk Monte Sereno
Harjot Sangha* City of Gilroy Staff Member nominated by Dir. Hilton
Gilroy
Item 3
Attachment 1
©
SILICONVALLEY
CLEAN ENERGY
2024 SVCE Assignments and Committee Interests
Director Agency
Executive Committee
6 Members
2024 Leg Ad Hoc Committee
Meets as needed
6 Interested Members
Audit Committee
Meets Twice Yearly & as
needed
4 Interested Members
Finance and Administration
Committee
Meets Quarterly & as needed
4 Interested Members
Tina Walia, Chair Saratoga ●
Chuck Page Saratoga
(Alternate Director) ✅
George Tyson, Vice Chair Town of Los Altos Hills ●
Elliot Scozzola Campbell ✅ ✅
Sergio Lopez
Campbell
(Alternate Director) ✅
Sheila Mohan City of Cupertino ✅
Hung Wei
City of Cupertino
(Alternate Director) ✅
Zach Hilton City of Gilroy ✅
Harjot Sangha City of Gilroy (Staff - Finance
Director) ✅
Sally Meadows City of Los Altos ●
Rob Rennie Town of Los Gatos
Evelyn Chua City of Milpitas
Bryan Mekechuk City of Monte Sereno ● ✅ ✅
Yvonne Martinez Beltran City of Morgan Hill ● ✅
Pat Showalter City of Mountain View ✅
Larry Klein City of Sunnyvale ● ✅
Murali Srinivasan City of Sunnyvale
(Alternate Director) ✅
Otto Lee County of Santa Clara
● = Confirmed appointment for 2024
✅ = To be ratified at Feb. 14, 2024 Board of Directors Meeting Item 3
Attachment 2
Appendix A
Silicon Valley Clean Energy
Board of Directors Meeting
February 14, 2024
Appendix A
Power Resource Contracts Executed by CEO
SILICON VALLEY
CLEAN ENERGY
Execution Version
CARBON FREE PRODUCT CONFIRMATION
This confirmation (“Confirmation”) confirms the Transaction between Morgan Stanley Capital Group Inc., a Delaware Corporation (“Party A”) and Silicon Valley Clean Energy Authority, a California joint powers authority (“Party B”), each individually a “Party” and together the “Parties”, dated as of January 17, 2024 (the “Effective Date”). This Transaction is governed by, constitutes part of, and is subject to the terms and provisions of the Master Power Purchase and Sale Agreement dated November 23, 2016 between the Parties (the “Master Agreement”) as amended June 1, 2021. This Confirmation and the Master Agreement, including any appendices, exhibits or amendments thereto, shall collectively be referred to as the “Agreement.”
The Parties agree as follows:
Seller: Morgan Stanley Capital Group Inc. Buyer: Silicon Valley Clean Energy Authority Product: Carbon Free Product
Contract Price:
“Contract Price” shall be equal to the sum of (1) the Energy Price, and (2) the Carbon Free Premium, where:
“Energy Price” is equal to CAISO NP15 Day Ahead Index for Hour Ending 01 through Hour Ending 24; and
“Carbon Free Premium” is equal to
Contract Quantity:
1. The quantity of MWs of CAISO Energy per hour during the Delivery Term as shown below:
Month MW
2. Minimum Monthly Carbon
Free Energy Quantity (MWh):
Delivery Term: One contract year, as follows:
.
Carbon Free Energy Delivery
Point: CAISO balancing authority area
DocuSign Envelope ID: 8592119F-1A42-496F-BF26-98BDB12F8255 Appendix A MSCG
CAISO Energy Delivery Point: NP15 EZ GEN HUB
CAISO Energy Delivery Hours: Monday through Sunday HE 0100 through 2400 (24 Hours) CAISO Energy Quantity
(MW):
The quantity of MWs per hour during the Delivery Term, as shown below:
Month MW
DocuSign Envelope ID: 8592119F-1A42-496F-BF26-98BDB12F8255 Appendix A MSCG
[Signature Page to Carbon Free Product Confirmation]
This Confirmation is subject to the General Terms and Conditions and the Exhibit identified below and attached hereto:
Exhibit A – Carbon Free Sources
IN WITNESS WHEREOF, the Parties have signed this Confirmation effective as of the Effective Date.
MORGAN STANLEY CAPITAL GROUP
INC.
Sign:
Print:
Title:
SILICON VALLEY CLEAN ENERGY
AUTHORITY, a California joint powers authority
Sign:
Print:
Title:
Kevin Collins
Vice President
DocuSign Envelope ID: 8592119F-1A42-496F-BF26-98BDB12F8255 Appendix A MSCG
[Signature Page to Carbon Free Product Confirmation]
This Confirmation is subject to the General Terms and Conditions and the Exhibit identified below and attached hereto:
Exhibit A Carbon Free Sources
IN WITNESS WHEREOF, the Parties have signed this Confirmation effective as of the Effective Date.
MORGAN STANLEY CAPITAL GROUP
INC.
Sign:
Print:
Title:
SILICON VALLEY CLEAN ENERGY
AUTHORITY, a California joint powers authority
Sign:
Print:
Title:
DocuSign Envelope ID: 8592119F-1A42-496F-BF26-98BDB12F8255 Appendix A MSCG
DocuSigned by:
Girish Balachandran
CEO
GENERAL TERMS AND CONDITIONS:
1. PRODUCT.
1.1 Product. For the Carbon Free Energy component of the Product delivered under this Confirmation, Seller shall use one or more Carbon Free Sources set forth in Exhibit A; provided however, Seller may designate additional Specified Sources as Carbon Free Sources upon five (5) days’ prior written notice to Buyer thereof; provided that such additional Specified Sources shall meet the requirement of Carbon Free Source as defined herein.
1.2 Seller Delivery Obligation.
(a) Throughout the Delivery Period, Seller shall sell and deliver or make available, or cause to be sold and delivered or made available to Buyer, the Contract Quantity of the Product.
(b) The Contract Quantity is a firm obligation of Seller. If Seller fails to deliver the Contract Quantity of the Product, or any component thereof, Buyer shall be entitled to receive from Seller amounts calculated as follows:
(i) with respect to the CAISO Energy component of the Product, Buyer shall be entitled to receive from Seller an amount calculated in accordance with Article Four of the Master Agreement; provided, that the Replacement Price shall be calculated based on the costs reasonably incurred by Buyer to purchase such substitute Product, or in the absence of a purchase, the market price for the Product at the Delivery Point as determined by Buyer in a commercially reasonable manner.
(ii) With respect to the Carbon Free Energy component of the Product, for (A) each MWh of the Minimum Monthly Carbon Free Energy Quantity that Seller fails to deliver or (B) each MWh of the Annual Quantity that Seller fails to deliver, Buyer shall be entitled to receive from Seller an amount calculated in accordance with Article Four of the Master Agreement; provided, that the Replacement Price shall be calculated based on the costs reasonably incurred by Buyer to purchase such substitute Carbon Free Energy, or in the absence of a purchase, the market price for the Carbon Free Energy as determined by Buyer in a commercially reasonable manner, including by reference to prevailing market prices for carbon compliance instruments.
2. DELIVERY TERM. This Confirmation shall be in full force and effect as of the Effective Date.
The Parties’ obligations with respect to the delivery of the Product during the Delivery Term shall continue after the Delivery Term and this Confirmation shall terminate on the date on which both Parties have completed the performance of their obligations hereunder, unless earlier terminated pursuant to the terms hereof.
3. SCHEDULING. Seller, or its designated scheduling coordinator, will perform all scheduling requirements applicable to the Transaction contemplated under this Confirmation. All scheduling will be performed consistent with all applicable CAISO and WECC prevailing protocols. The DocuSign Envelope ID: 8592119F-1A42-496F-BF26-98BDB12F8255 Appendix A MSCG
Carbon Free Energy will be scheduled by the Seller from the Carbon Free Sources into CAISO without substituting electricity from another source. For greater certainty, the Parties hereby acknowledge and agree that the Contract Quantities of Carbon Free Energy shall be evidenced by the lesser of the metered Carbon Free Energy quantity generated by the Carbon Free Source and the NERC e-Tag showing the quantity of Carbon Free Energy scheduled into CAISO. For greater certainty, no NERC e-Tags will be generated for deliveries from a Carbon Free Source within the CAISO Balancing Authority. Each month the Seller will deliver at least the Minimum Monthly Product Quantity (MWh) of Carbon Free Energy until the Annual Quantity has been met. IST scheduling for CAISO Energy will be complete by the Business Day prior to the day of delivery.
Scheduling to be completed by 9:00 a.m. Pacific Prevailing Time (PPT). e-Tagging: Each e-tag for Carbon Free Energy from an out-of-state Carbon Free Source will include the following, depending on the Carbon Free Source from which Carbon Free Energy is delivered:
E-Tag Location Carbon Free Energy
Last CA (Control Area) under
‘Physical Path’
CAISO Balancing Authority
Last or ‘sink’ PSE (Purchasing
Selling Entity) under ‘Physical Path’
SVCE or MSCG01
NERC Source As set forth in Exhibit A
Misc(Token/Value) field As set forth in Exhibit A
Comment field As set forth in Exhibit A
4. MONTHLY BILLING SETTLEMENT.
4.1 Payment. For each month during the Delivery Term, (a) Buyer shall pay Seller an amount equal to the Energy Price multiplied by CAISO Energy Quantity delivered during such month, and (b) Buyer shall pay Seller an amount equal to the Carbon Free Premium multiplied by the Carbon Free Energy delivered during such month. Seller shall be entitled to retain all revenues associated with delivery of the Product to the CAISO. Each Party will settle this Transaction by making the payments required by this Transaction and by submitting, via the CAISO’s IST process, IST schedules to the CAISO consistent with the terms of this Transaction before the applicable IST deadline. If there is a failure with the submission of IST schedules that match this Transaction, the Parties shall work together to make such adjustments as are necessary to put the parties in the same position they would have been in if the proper IST submissions had been made.
4.2 Monthly Invoice Timeline. Buyer shall pay undisputed invoice amounts on or before the twenty-third (23rd) day of the month in which the invoice was received, provided that such invoice was received by the fifteenth (15th) day of the month, otherwise the invoice will be paid on the next month’s monthly distribution date under the Security Documents (i.e., the 23rd of the month).
5. TRACKING OF CARBON FREE ENERGY QUANTITY DELIVERIES.
DocuSign Envelope ID: 8592119F-1A42-496F-BF26-98BDB12F8255 Appendix A MSCG
(a) Seller shall be responsible for meeting all requirements for delivery and verification of Carbon Free Energy imports, including NERC e-Tags. In addition, Seller shall produce NERC e-Tags in a format that adequately demonstrates that Buyer is purchasing a Carbon Free Energy product hereunder. (b) Seller shall provide Buyer, within a reasonable time after request, (i) proof of the veracity of the representations made by Seller in Section 7 herein and (ii) hourly meter data or an equivalent report showing the actual generation for the Carbon Free Sources.
(c) Seller, upon the reasonable request of the Buyer, will deliver additional documents and information related to this Transaction to Buyer; provided however such obligation is only to the extent such information is either (i) in the Seller’s possession or (ii) reasonably available to Seller.
6. COMPLIANCE REPORTING. For Carbon Free Energy delivered pursuant to this Confirmation that is imported into California, Seller will be the electricity importer into California for purposes of the Cap and Trade Regulations. The Parties acknowledge that Seller will be responsible for satisfying the Compliance Obligation (as such term is defined in the Cap and Trade Regulations) under the Cap and Trade Regulation associated with any imported Carbon Free Energy that Seller schedules and delivers to the CAISO Balancing Authority and that they will work together such that Seller may claim that such Carbon Free Energy is from a Specified Source to mitigate such Compliance Obligation. Buyer shall be responsible for submitting compliance reports to the CPUC and/or other Governmental Authorities on behalf of Silicon Valley Clean Energy and will require resource information, electronic tagging information, and other documentation to be provided by Seller. Seller shall provide all reasonable information to Buyer necessary for Buyer to timely comply with periodic compliance reporting requirements and as otherwise required by Applicable Law with respect to the Product.
7. SELLER REPRESENTATIONS AND WARRANTIES. Seller hereby represents and warrants to Buyer that:
(a) it has the right to sell the Carbon Free Energy;
(b) the Carbon Free Energy has never been sold for any other purpose or use; (c) the Carbon Free Energy is free and clear of all liens or other encumbrances; (d) as of the Effective Date of this Confirmation, the Carbon Free Sources have been assigned an emissions factor of zero (0) by CARB as reported by CARB; and (e) it is one of: (i) the owner or operator of the Carbon Free Sources with prevailing rights to sell the electricity sold hereunder, or (ii) is selling or remarketing electricity procured pursuant to a Specified Source Transaction from the Carbon Free Sources through the market path and possesses or has the right to obtain copies of written documents that the energy it is reselling or remarketing was procured pursuant to Specified Source transaction(s) from the Carbon Free Sources through the market path.
DocuSign Envelope ID: 8592119F-1A42-496F-BF26-98BDB12F8255 Appendix A MSCG
8. STANDARD OF CARE AND GOOD FAITH. When performing its obligations hereunder, Seller shall act in good faith and shall perform all work in a manner consistent with Prudent Utility Practices.
9. COMPLIANCE WITH SECURITY DOCUMENTS. During the entire period that this Confirmation remains in effect, Buyer shall comply with the Security Documents.
10. BUYER LIMITED ASSIGNMENT. Notwithstanding anything to the contrary, Buyer may make a limited assignment to an entity (“Limited Assignee”) that has creditworthiness that is equal to or better than the creditworthiness of Buyer (measured as of the Effective Date) of Buyer’s right to receive the Product and its obligation to make payments to the Seller, which assignment shall be expressly subject to the Limited Assignee’s timely payment of amounts due under the Agreement, at any time upon not less than thirty (30) days’ Notice by delivering a written request for such assignment, which request must include a proposed form of agreement reasonably acceptable to Seller. Provided that Buyer delivers a proposed assignment agreement complying with the previous sentence, Seller agrees to (i) comply with Limited Assignee’s reasonable requests for “know-your-customer” and similar account opening information and documentation with respect to Seller, including but not limited to information related to forecasted delivery schedules, credit rating, and compliance with anti-money laundering rules, the Dodd-Frank Act, the Commodity Exchange Act, the Patriot Act and similar rules, regulations, requirements and corresponding policies; and (ii) promptly execute such assignment agreement and implement such assignment as contemplated thereby, subject only to the countersignature of Limited Assignee and Buyer and Seller’s ability to make the representations and warranties contained therein.
11. DEFINITIONS. Any capitalized terms used in this Confirmation but not otherwise defined below shall have the meaning ascribed to such term in the Master Agreement:
“ACS” means “asset-controlling supplier” as that term is defined in the Cap and Trade Regulations. “Applicable Law” means any statute, law, treaty, rule, tariff, regulation, ordinance, code, permit, enactment, injunction, order, writ, decision, authorization, judgment, decree or other legal or regulatory determination or restriction by a court or Governmental Authority of competent jurisdiction, or any binding interpretation of the foregoing, as any of them is amended or supplemented from time to time, that apply to either or both of the Parties, the Project(s), or the terms of the Agreement. “CAISO” means the California Independent System Operator Corporation or the successor organization to the functions thereof.
“CAISO Energy” means a quantity of Energy equal to the hourly quantity without Ancillary Services that is or will be scheduled as an Inter-SC Trade pursuant to the CAISO Tariff for which the only excuse for failure to deliver or receive is an Uncontrollable Force. Terms that are capitalized, but not defined in this definition shall have the meaning ascribed to them in the CAISO Tariff. “CAISO Tariff” means the California Independent System Operator Corporation Agreement and Tariff, Business Practice Manuals (BPMs), and Operating Procedures, including the rules, protocols, procedures and standards attached thereto, as the same may be amended or modified from time-to-time and approved by FERC.
“Cap and Trade Regulations” means the Mandatory Greenhouse Gas Emissions Reporting and California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms regulations (California Code of Regulations Title 17, Subchapter 10, Articles 2 and 5 respectively) promulgated by the DocuSign Envelope ID: 8592119F-1A42-496F-BF26-98BDB12F8255 Appendix A MSCG
California Air Resources Board of the California Environmental Protection Agency pursuant to the California Global Warming Solutions Act of 2006.
“Carbon Free Energy” means Energy deliveries from Carbon Free Sources. “Carbon Free Product” means Carbon Free Energy and CAISO Energy. “Carbon Free Source” means any Specified Source, except for nuclear-powered generation assets, that is located within the WECC and that is considered by the State of California to have zero Greenhouse Gas emissions in accordance with the Regulation for the Mandatory Reporting of Greenhouse Gas Emissions (title 17, California Code of Regulations, sections 95100 to 95133). Carbon Free Source does not include any Renewable Energy Credits or any Energy source with an e-tag with a source point associated with a nuclear or coal-fired generating resource. “Change in Law” has the meaning set forth in Section 2.2 hereof. “Commercially Reasonable Efforts” for the purposes of this Confirmation, “commercially reasonable efforts” or acting in a “commercially reasonable manner” shall not require a Party to undertake extraordinary or unreasonable measures.
“Compliance Obligation” has the meaning set forth by the Cap and Trade Regulations. “CPUC” means the California Public Utilities Commission. “Customers” means the residential, commercial, industrial, and all other retail end use customers that have not opted out of the Silicon Valley Clean Energy Program, as designated from time to time by Buyer as being served by Buyer within the jurisdictional boundaries of the County of Santa Clara. “Delivery Term” has the meaning set forth on page 1 of this Confirmation . “Effective Date” has the meaning set forth on page 1 of this Confirmation. “Energy” means electrical energy, measured in MWh.
“Exhibits” shall be those certain Exhibits, which are attached hereto and made a part hereof. “FERC” means the Federal Energy Regulatory Commission.
“GAAP” means generally accepted accounting principles as in effect from time to time in the United States.
“Governmental Authority” means any federal, state, local or municipal government, governmental department, commission, board, bureau, agency, or instrumentality, or any judicial, regulatory or administrative body, or the CAISO or any other transmission authority, having or asserting jurisdiction over a Party or the Agreement.
“Mandatory Reporting Rule” means the regulations entitled Mandatory Greenhouse Gas Emissions Reporting set forth in Article 2 of Subchapter 10 of Title 17 of the California Code of Regulations. “MW” means megawatt.
“MWh” means megawatt-hour.
DocuSign Envelope ID: 8592119F-1A42-496F-BF26-98BDB12F8255 Appendix A MSCG
“Prudent Industry Practices” means any of the practices, methods, techniques and standards (including those that would be implemented and followed by a prudent operator of generating facilities similar to the Project(s) in the United States during the relevant time period) that, in the exercise of reasonable judgment in the light of the facts known at the time the decision was made, could reasonably have been expected to accomplish the desired result, giving due regard to manufacturers’ warranties and recommendations, contractual obligations, the requirements or guidance of Governmental Authority, including CAISO, Applicable Law, the requirements of insurers, good business practices, economy, efficiency, reliability, and safety. Prudent Industry Practice shall not be limited to the optimum practice, method, technique or standard to the exclusion of all others, but rather shall be a range of possible practices, methods, techniques or standards.
“Security Documents” has the meaning set forth in the Master Agreement. “Silicon Valley Clean Energy Program” means the community choice aggregation program operated by Buyer.
“Specified Source” means an electricity generating facility that is a “specified source”, as such term is defined in the Mandatory Reporting Rule.
“Unspecified Sources of Power” means electricity that is not traceable to a specific generation source (e.g., what is commonly known as “market” or “system” power) by any auditable contract.
DocuSign Envelope ID: 8592119F-1A42-496F-BF26-98BDB12F8255 Appendix A MSCG
Exhibit A
EXHIBIT A
CARBON FREE SOURCES
Facility name Fuel Type LOCATION EIA CARB ID
Balch #1 PH Large hydroelectric California 217
Balch #2 PH Large hydroelectric California 218
Belden Large hydroelectric California 219
Bucks Creek Large hydroelectric California 220
Butt Valley Large hydroelectric California 221
Caribou 1 Large hydroelectric California 222
Caribou 2 Large hydroelectric California 223
Cresta Large hydroelectric California 231
Drum #1 Large hydroelectric California 235
Drum # 2 Large hydroelectric California 236
Electra Large hydroelectric California 239
Haas Large hydroelectric California 240
James B Black Large hydroelectric California 249
Kerckhoff #2 PH Large hydroelectric California 682
Kings River Large hydroelectric California 254
Pit 1 Large hydroelectric California 265
Pit 3 Large hydroelectric California 266
Pit 4 Large hydroelectric California 267
Pit 5 Large hydroelectric California 268
Pit 6 Large hydroelectric California 269
Pit 7 Large hydroelectric California 270
Poe Large hydroelectric California 272
Rock Creek Large hydroelectric California 275
Salt Springs Large hydroelectric California 279
Stanislaus Large hydroelectric California 285
Tiger Creek Large hydroelectric California 287
SOUTH FEATHER WATER AND POWER AGENCY
(Woodleaf and Forbestown)
Large hydroelectric California 417
NID‐CHICAGO PARK Large hydroelectric California 412
Hoover Dam Large hydroelectric Nevada 154 500066
Narrows PH (Hydro) Large hydroelectric California 262 910321 Narrows 2 Powerhouse (Hydro) Large hydroelectric California 455 910320 Colgate Powerhouse (Hydro) Large hydroelectric California 454 910312 Middle Fork Hydro Large hydroelectric California 425 910317 Wanapum Dam Large hydroelectric Washington State 3888 500054 Priest Rapids Dam Large hydroelectric Washington State 3887 500054 Rock Island Dam Large hydroelectric Washington State 6200 500003 Rocky Reach Dam Large hydroelectric Washington State 3883 500055 Boundary Dam Large hydroelectric Washington State 6433 500043 Lucky Peak Dam Large hydroelectric Idaho 10014 500046 Wells Large hydroelectric Washington State 3886 500237 Kerr (Seli'š Ksanka Qlispé) Dam Large hydroelectric Montana 2188 500014 DocuSign Envelope ID: 8592119F-1A42-496F-BF26-98BDB12F8255 Appendix A MSCG