• Subtitle
New SV Clean Energy
PowerPoint Template
Item 3
PRESENTATION
SVCE Executive Committee Meeting
February 2024
Item 3
PRESENTATION
Agenda & Purpose of Presentation
Purpose: discuss Load Management Standards Plan (Plan) content for the Executive Committee to consider approval and a recommendation that the Board of Directors adopt the Plan as a consent item at the March Board of Directors meeting.
1. Load Management Standards (LMS) Requirements
2. Context for Discussion and Relationship to Other Activities
3. Overview of Compliance Plan sections
4. SVCE’s Efforts to-date
5. Estimating Potential Dynamic Rate Impacts -4 Perspectives
6. Conclusion and Next Steps
2 •
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Item 3
PRESENTATION
Load Management Standards (LMS) Compliance
Plan Requirements
The LMS require load serving entities to file a plan to the California Energy Commission (CEC) for approval (Compliance Plan)
The plan must:
A. Describe how SVCE plans to meet the 4 load management standards goals:
1. Encouraging electricity use during off-peak hours
2. Encouraging control of daily and seasonal peak loads to improve system efficiency and reliability
3. Lessening or delaying need for capacity
4. Reducing fossil fuel consumption and GHG emissions
B. Evaluate cost effectiveness, equity, technological feasibility, benefits to the grid, and benefits to customers of marginal cost-based rates for each customer class or programs that enable automated response to marginal cost signals for each customer class
3 •
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Item 3
PRESENTATION
Context for Discussion
SVCE is required by the California Code
of Regulations Title 20 § 1623.1 to
submit a compliance plan to its rate
approving body for adoption
The Plan explores marginal cost-based
rates and programs that enable
customers to meet the Load
Management Standards goals but does
not commit SVCE to any future course
of action, due to the many unknowns
surrounding dynamic pricing
Submission of a
LMS Plan to SVCE’s
Board of Directors
for adoption is a
compliance
obligation.
Item 3
PRESENTATION
Compliance Plan’s Relationship to Other Activities
The Compliance Plan adoption is one part of several future Board actions tied to the Load Management Standards and demand flexibility efforts. 5 1. SVCE’s efforts to
better match supply
and demand to date
(existing programs)
2. Estimating
potential dynamic
rate impacts with
the limited
information available
3. Status of
administrative
components that will
enable customers to
easily access their
dynamic rate
4. Resources needed
to be able to
implement dynamic
rates
Item 3
PRESENTATION
Overview of Compliance Plan Content
SVCE and other load serving entities in learning mode.
6 •
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PRESENTATION
Many factors affecting SVCE’s
evaluation of dynamic pricing are
in flux.
CPUC dynamic pricing pilot implementation
parameters are changing.
Tools to support customer dynamic rate enrollment
are still in development.
SVCE's ability to directly influence dynamic rate
pricing platforms during and beyond pilots is not
known. 7
Item 3
PRESENTATION
Current Efforts to Better Match Supply and Demand
SVCE runs several programs (including rates) to encourage customers to change their demand.
SVCE’s
Lights On
Silicon Valley
Program
SVCE’s Electric Homes Rate (E-ELEC)
OFF-PEAK 3 p.m. PEAK
SVCE’s GridShift Program
©
SIUCONVALLEY
CLEAN ENERGY
Cheaper, Greener, Smarter
GridShift:
EV Charging
8 Scenario Description
Low • Based on assessment of SVCE customer class behavior and end uses • Best estimate of realistic load change potential
• Conservative customer participation
Medium • Less conservative assessment of participation and load change potential
High • Based on very robust customer participation and generous load change potential assumptions
• Extreme bookend of potential; unlikely to be realized Item 3
PRESENTATION
Estimating Potential Dynamic Rate Impacts -
Hypothetical Customer Response Scenarios Analyzed
CAISO Hourly Energy Prices, June 17 2022
C eanest a
Hours
20 How will
customers
change
loadin
response to
hourly price
signals?
123456789 10111213141516171819 202122 23 24
Hour
Scenarios analyzed based on customer class
participation and incrementally addressable load
assumptions:
9 Item 3
PRESENTATION
Estimating Potential Dynamic Rate Impacts - Load
Impact Results
Potential impact on load across all customer classes and scenarios expected to be low over the next several years. At most, SVCE expects around 2% of all customers to enroll in dynamic rates.
90,000
80,000
70,000
f 60,000
5 77 50,000
T
£ 40,000
g 30,000
20,000
10,000
0 Total Load Impact By Rate Class
Large Commercial Rate Class Load Impact
Low Medium High
Scenario
Agricultural Large Commercial Residential Small Med Commercial 10 •
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PRESENTATION
Estimating Potential Dynamic Rate Impacts -Equity
SVCE has many programs that strive to provide
underserved communities with electrification
opportunities and tools to change their
demand.
Underserved communities face barriers to
benefiting from dynamic rates pilots:
Inability to change their energy use to off-peak times due to demanding work schedules
Lack of access to smart appliances and
automation technology
Financial constraints
Older homes/rented homes
Language barriers
11 Item 3
PRESENTATION
Estimating Potential Dynamic Rate Impacts-Technological Feasibility Systems and related process issues must be resolved for SVCE to be able to successfully implement hourly rates and or programs that access hourly rates.
1. SVCE must continue to be able to differentiate
its pricing and programs from PG&E’s offerings
2. CPUC dynamic rate pilots and supporting
systems/processes are under development,
don’t always consider CCA priorities, and appear
to require manual/labor-intensive effort
3. Interfacing with California’s hourly rate database
server (MIDAS) has been challenging
Item 3
PRESENTATION
Estimating Potential Dynamic Rate Impacts- Customer
Benefits
1. Qualitatively speaking, customer benefits will depend on:
1. Customer acceptance of the new complex rate structure
2. Customer access to automation technology
2. The actual rate structures for the CPUC’s dynamic rate pilots are still being sorted out
3. SVCE cannot evaluate the customer benefits of dynamic rates without first seeing how customers respond to dynamic rate signals
13 Item 3
PRESENTATION
O Concluding Thoughts
By recommending adoption of the SVCE LMS Plan, the Executive Committee will support SVCE’s compliance with the Load Management Standards.
1. SVCE is already contributing to meeting the LMS
goals through its current program and rate
offerings
2. SVCE will continue to encourage the use of
energy at off-peak hours to improve the
electrical system’s efficiency, reliability, and
greenhouse gas footprint
3. SVCE will evaluate the outcomes of the CPUC’s
various dynamic rate pilots
14 •
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Item 3
PRESENTATION
Next Steps and Note About Pilots
March 2024 - BOD finalizes
adoption of 1st Compliance
Plan
April 1, 2024 - Plan Submitted
to the CEC
SVCE has been
working and continues
to work with PG&E on
dynamic rate pilot
implementation details.
Once the pilot
structures have been
finalized, SVCE staff
will share pilot specifics
with the Board.
15 Item 3
PRESENTATION
Appendix
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PRESENTATION
Consequences of Noncompliance
CEC Review,
Consequences of
Noncompliance,
and Annual Filings
CEC will be looking for “good faith efforts” to
comply with the regulations
After reviewing the plan, the CEC may request
additional information or recommend changes
If a load serving entity is noncompliant, then the
CEC’s Executive Director may file a complaint with
the CEC or seek injunctive relief
No citation program in place
After the 1st submission of the Compliance plan,
annual reports demonstrating SVCE’s
implementation of the approved plan will need to
be submitted
17 •
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✓
✓
✓
Item 3
PRESENTATION
What are the Load Management Standards?
Regulations adopted by
the California Energy
Commission (CEC) to
promote electricity
demand flexibility.
Demand flexibility
Load flexibility
Demand management
Demand-side management
The objectives of the Load Management
Standards are to:
Encourage the use of electrical energy
during off-peak hours
Control daily and seasonal peak loads
Improve equity, efficiency, and reliability
Lessen/delay need for new electrical
capacity
Reduce fossil fuel consumption
Reduce greenhouse gas emissions
Demand flexibility
can contribute to all
three of SVCE’s
service goals:
Affordable
Clean
Reliable
We anticipate very few customers enrolling in these optional hourly rate pilots.
Item 3
PRESENTATION
What are the CPUC Dynamic Rate Pilots?
Pilot Category PG&E Pilot Name Eligible Customer
Classes
Pilot Description Start Date
Demand
Flexibility
PG&E AgPilot AG-1A, AG-1B, AG-B,
AG-C
Pilot incentivizes shifting of
agricultural pumping loads
End of June
2024
Demand
Flexibility
PG&E Expanded
Pilot 2
E-ELEC, B-6, B-10, B-19,
B-20, EV2-A, BEV
Pilot incentivizes commercial
and industrial customers to shift
loads as well as EV owners and
electrified residential (E-ELEC)
End of June
2024
DAHRTP DAHRTP GRC B-6, B-19, B-20, E-ELEC Pilot incentivizes commercial and industrial customers to shift
loads as well as electrified
residential (E-ELEC)
By 2/28/25
)
Item 3
PRESENTATION
Load Management Standards (LMS) Compliance
Cycles and Relationship to RTP Pilot Activities
A LMS Compliance Plan must be submitted to the CEC every 3 years.
April 1, 2024 End of June
2024 Feb 28, 2025 July 1,2025 April 1, 2027 July 1, 2027 1st Compliance
Plan Due
2nd Cycle
Compliance Plan
Due
Demand Flexibility Pilots -AgFit Pilot Expansions
DAHRTP* Real Time Pricing Pilot (delayed)
BOD Approval of
Marginal Cost
Based Rates (RTP)
Customers have
the option of
enrolling in RTP
*DAHRTP = Day Ahead Hourly Real Time Pricing 20
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Item 3
PRESENTATION
Promoting Demand Flexibility
Through Real Time Pricing (RTP)
Time-dependent rate = a rate that can vary depending
on the time of day to encourage off-peak electricity use and reductions in peak electricity use
Time-of-use (TOU) rate = a rate with predefined prices
that vary according to the time of day, the season
and/or the day type (weekday, weekend)
Marginal cost-based rate (RTP) = a rate that accounts
for the marginal energy cost, the marginal capacity cost (generation, transmission, and distribution), and any
other appropriate time and location dependent marginal
costs, including the locational marginal cost of
associated greenhouse emissions, on a time interval of
no more than one hour
Item 3
PRESENTATION
The electrical grid is built to have enough capacity to meet the peak load on the system.
(5) Estimating Potential Dynamic Rate Impacts- Grid
Benefits
1. If customer demand can be moved to times when grid
conditions are more favorable, or if they can eliminate their demand during a certain period, then this
improves reliability on the grid
2. SVCE, customers, and other market participants would benefit from regulations that expand the value
associated with daily load flexibility
22 Item 3
PRESENTATION
Status of Administrative Components
SVCE is on track with meeting the two demand flexibility enabling administrative component requirements.
1. Market Informed Demand Automation Server (MIDAS)
1. Provides access to load serving entities time-varying rates, greenhouse gas emission signals, and CAISO Flex Alerts
2. SVCE’s TOU rates are uploaded to MIDAS and are updated with every rate change
2. Ratepayer Identification Number (RIN) Statewide Tool
1. Allows for authorized access to rates by third parties to enable device automation responsiveness to pricing signals
2. SVCE is participating in meeting with other stakeholders to develop the tool
23 •
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Item 3
PRESENTATION
Resources Needed to Implement Dynamic Rates
1. SVCE evaluated the following types of resources that would be needed to support dynamic rates for the 2024-2027 period Labor/staffing
Marketing/outreach
IT and system needs
Customer support
2. SVCE is preparing to support the implementation of dynamic rates
o
o
o
o
o
o
o
o
Item 3
PRESENTATION
More on Demand Flexibility
Demand reduction during a small number of peak hours
Grid-integrated / RA capacity value
Well-established customer offerings and business models How aggregators make money
Daily load shifting to lower-cost / cleaner hours
Potential load modification and energy value for LSEs
Nascent customer offerings and business models
CalFUSE vision - RTP and connected devices
25 1
• Subtitle
New SV Clean Energy
PowerPoint Template
Policy Presentation
February 23, 2024
Item 4
PRESENTATION
2 The Project
Policy Maintenance
To ensure compliance, good business practices and
transparency, policies are approved by the board and shared publicly on our website.
Regular maintenance on these policies is required to ensure continued compliance, adherence and updates as needed.
Setting an annual cadence for review & revision, as well as prioritizing time and space for this requirement is a priority Item 4
PRESENTATION
3 Current Policy Metrics
SVCE’s Public Facing, Board Adopted Policies – Current State Row Labels Count of Policies
Additional 3
Finance 13
G&A 9
HR 8
IT 15
Grand Total 48
6%
27%
19% 17%
31%
SVCE Policy Breakdown
Additional
Finance
G&A
HR
IT
Item 4
PRESENTATION
4 CCA Comprehensive Policy Metrics
Policy Categories
0 10 20 30 40 50 60
AvA
MCE
OCPA
PCE
SDCP
SFCP
Sonoma CP
SVCE
Additional Finance G&A HR IT Power Services and CEO spending Additional Customer Service
Finance G&A
HR IT
Power Services and CEO spending
Item 4
PRESENTATION
5 How Many Policies Should We Have?
The Right Ones
Policy - a general written document that establishes a
standard by which the institution manages its affairs
• mandates, specifies, or prohibits conduct in order to enhance the institution’s mission, ensure coordinated compliance with applicable laws and regulations, promote operational efficiency, and/or reduce institutional risk
• Ex: Energy Risk Management, Procurement Policy, Investment, Financial Reserves, Customer Confidentiality
Item 4
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
6 Policies, Standards and Procedures
The Right Ones Approval Document Characteristics
Board Policy
• Transparency: Public
• Purpose: Mandates or prohibits guiding agency standards • Detail: Low
• Significant importance (risk, fiscal, customer impact) • Few details on execution
Executive Staff Standard
• Transparency: workforce
• Purpose: Outlines an operational rule, mandate, or expectation • Detail: Medium
• May change often under operational authority to keep up with needs Executive Staff Procedure
• Transparency: workforce
• Purpose: details the means, tools, and process to meet the standard or policy • Detail: Very high
• Changes very frequently
Item 4
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
7 Use color
change to
indicate new
topic, etc.
(Optional!)
SVCE has 2 to 3
times more
public facing
policies than
other CCAs
Additional Customer Confidentiality Policy
Additional Non-Standard Pricing Agreement Policy
Additional SVCE Risk Management Policy
Finance Accounting Policy
Finance Budget Adoption, Control, and Reporting Policy
Finance Capital Projects Policy
Finance Capitalization Policy
Finance Chart of Accounts Policy
Finance Customer Generation Rates
Finance Debt Limitations
Finance Delinquent Accounts & Collections Policy
Finance Files & Records Management Policy
Finance Financial Reserves Policy
Finance Investments Policy
Finance Purchasing Card Policy
Finance Purchasing Policy
G&A California Public Records Act Policy
G&A CEO Absence Policy
G&A Chair and Vice Chair Vacancy Policy
G&A Charging Station
G&A Code of Ethics
G&A Hybrid Meetings Policy
G&A Ticket and Pass Distribution Policy Pursuant to FPPC Regulation 18944.1 G&A Travel and Meeting Expense Reimbursements for Employee Policy G&A Vehicle Use Policy
HR Cash In Lieu Of Health Benefits
HR Fitness Reimbursement Benefit
HR Paid Time Off (PTO) Cash-Out Option Policy
HR Recruitment Policy
HR Smartphone Stipend Policy
HR Tuition Assistance Policy
HR Unpaid Personal Leave Policy
HR Volunteer Time Off Policy
IT Access Control Policy
IT Clean Desk Policy
IT Data Breach Policy
IT Disaster Recovery Policy
IT E-mail Use Policy
IT Information Systems Use Policy
IT Internet Usage Policy
IT IT Asset Management Policy
IT IT Satisfaction Policy
IT IT Security Plan Policy
IT Malware Defense Policy
IT Password Protection Policy
IT Security Audit Policy
IT Threat-Risk Assessment Policy
IT Workstation Security for HIPPA Policy
Additional
Finance
G&A
HR
IT
Item 4
PRESENTATION
8 Policies, Standards and Procedures
Examples – Future State - HR
Exec Staff
Exec Staff
Board Personnel
Authority
Benefits
Standard
Cash in Lieu
Procedure
Fitness
Reimbursement
Procedure
Recruitment
Standard
Recruitment
Incentive
Procedure
Item 4
PRESENTATION
9 Policies, Standards and Procedures
Examples – Future State - IT
Exec Staff
Exec Staff
Board Information
Technology
Policy
IT Security
Plan
Standard
Password
Protection
Procedure
Clean Desk
Procedure
Informations
Systems Use
Standard
Email Use
Procedure
Item 4
PRESENTATION
10 Next Steps Part I Title of the Page
Review, revise, realign, reassign
48 policies become ~21 policies + standards + procedures Current State
Policy
Consolidate
7 14%
Policy
21 44%
Standard
11 23%
Standard
(Employee
Handbook)
9 19%
FUTURE
Item 4
PRESENTATION
SILICON VALLEY
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11 Next Steps Part II Title of the Page
Revised policies will be
brought for board adoption
List of retired, realigned
policies will be reviewed
Return annually for policy
updates and review
Ok, 14, 67%
Update , 7,
33%
POLICIES
Item 4
PRESENTATION
©
SILICON VALLEY
CLEAN ENERGY
12 Questions?
Feedback?
Item 4
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 5
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
Assigning New Program
Funding
Executive Committee
February 23rd, 2024
•
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•
Item 5
PRESENTATION
Today’s objective - seeking EC feedback
on ~$34M recently
added to Programs Fund:
Ongoing SVCE staff launching, revising programs
FY24 annual (~$9M)
December 2023
adjustment ($20M)
Existing, unassigned
program funds (~$5M)
Oct-Dec
2023
Oct 2023 -
Today
Board sets aside additional funding
SVCE staff review portfolio, feedback to date,
and align on new program concepts
Today Seeking EC feedback on program funding
assignment
SILICON VALLEY
CLEAN ENERGY
Mar 2024
and
onwards
Board approval. Staff complete designs,
additional stakeholder input, and launch
programs
2 Item 5
PRESENTATION
Programs help build the support ecosystem to help policy succeed CD Recap: transforming the market, at scale
Incentives and lower
up-front costs
Awareness and
acceptance
Quality and available
equipment
Efficient processes
Available workforce
INDUCTION
COOKING
HEAT PUMP
HEATING AND
COOLING HEAT PUMP
WATER HEATER
3 •
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Item 5
PRESENTATION
Recap: existing SVCE efforts
By end of FY23, have
20+ active programs with
"20% of funds spent and
another "65% “live” or
contracted
Have identified some
gaps and new tactics to
add
Case study -FutureFit Homes incentives
Rapidly increased uptake
Gathering cost data and supporting projects
BUT seeing limited pool of participant types
New areas:
Mechanism for those who are very busy -“turnkey”
Reach renters and low-income in single family homes
How can aggregating projects lower costs?
SILICON VALLEY
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Item 5
PRESENTATION
Process recap: staff review
Team reviewed current portfolio, feedback/needs, stakeholder/customer interests Analysis of existing programs: budget, objectives,
direct impact, state of market today, and size of market Analysis of portfolio: gaps and needs given SVCE
priorities, review of program data and customer input
Evaluated dozens of new ideas and selected
proposed list
KEY GOALS
QUALITY &
CUSTOMER EASE OF WORKFORCE ELECTRICITY EQUITY (working to reach ONLY SVCE CAN/WILL CRITICAL "UNLOCKING" AFFORDABILITY AWARENESS EXPERIENCE IMPLEMENTATION AVAILABILITY SUPPLY CHAIN RELIABILITY all customers) PLAY THIS ROLE? ELEMENT SCAUNG / ENABLING SCALE
XXX X XXX XX
Developed “program briefs” to guide discussion of
what to allocate and compile initial details
5 Item 5
PRESENTATION
Program summary
Planned allocations out of the $33.55M
Category Allocation
Expanded single family home electrification
(renters, lower costs) +$16M
Customer awareness
(experiential and marketing) +$11.5M
E-mobility incentives +$2M
Workforce +$1.3M
C&l projects +$2M
Other +$0.75M
$33.55M
6 Item 5
PRESENTATION
Program summary
Planned allocations out of the $33.55M
Category Allocation
Expanded single family home electrification
(renters, lower costs) +$16M
Customer awareness
(experiential and marketing) +$11.5M
E-mobility incentives +$2M
Workforce +$1.3M
C&l projects +$2M
Other +$0.75M
Program
Single Family Turnkey*
Neighborhood Electrification
Portable Heat Pumps
eHub
Community Demonstration Grants*
Programs Marketing Fund
E-Bikes
Targeted EV Rebates and Education
Workforce Development Partnerships
C&l Technical Support and Incentives
Virtual Power Plant
EM&V
*- $33.55M
*Note ^70% going
towards Turnkey
and Demo Grants
•
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Item 5
PRESENTATION
Expanded single family customer participation
in home electrification (+$16M)
Objectives
Easy participation pathways
Reach single family low-income
Reach renters
Aggregate projects to lower costs
Impacts
700 homes electrified (300 low income)
1,000 emergency water heaters
Neighborhood-level: 20+ homes
electrified, learn how this can scale
100 portable heat pumps installed
Program Element Planned
Allocation
No-cost install for low-income
Emergency water heater replacement +$14M
“Turnkey” install, with co-payment
Neighborhood-scale electrification +$1.5M
Portable heat pumps +$0.5M
Programs expected to run 2024-2027
•
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•
Item 5
PRESENTATION
Customer awareness (experiential and
marketing) +$11.5M
Objectives
Increase use of eHub services
Increase enrollment in programs
Assist member agencies on efforts
to decarbonize their communities
Impacts
Grants for all agencies, plus competitive
grants for decarb projects or programs
that promote customer awareness/action
1.5M email opens and 350K unique web
visits
Drive uptake in programs through
increased marketing
Program Element Planned
Allocation
eHub +$1M
Community Engagement Grants
-Community-specific projects or
programs
-Focus on engaging customers
-Open to member agencies and
other local organizations
+$10M
Programs Marketing Fund +$0.5M
Programs expected to run 2024-2027 9
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Item 5
PRESENTATION
E-mobility incentives +$2M
Objectives
Increase EV adoption (particularly
multifamily and low-to-moderate-income customers)
Build community awareness of EV
incentives and benefits
Impacts
450 EVs to targeted customers
10 events to build EV awareness
450 E-bikes
Program Element Planned
Allocation
E-Bikes +$0.5M
Targeted EV Rebates and Education +$1.5M
Programs expected to run 2024-2026 10
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Item 5
PRESENTATION
Workforce +$1.3M
Objectives
Prepare workforce in SVCE territory
to electrify buildings at scale
Supercharge existing regional
electrification workforce efforts
Invest in local workforce initiatives
Impacts
Engage with diverse set of contractors,
connect to customers and programs
Program Element Planned
Allocation
Workforce Development Partnerships +$1.3M
Support workforce development
organizations
Training/education/analysis
Details TBD
Program expected to run 2024-2025 11
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Item 5
PRESENTATION
C&l projects +$2M
Objectives
Support innovative electrification of
large commercial and industrial (C&l)
Pilot approaches in nascent market
Provide additional value to non-res
customers
Impacts
Upgrade C&l equipment to electric at
several customer sites (depends on
project size)
Program Element Planned
Allocation
C&l Technical Support and Incentives +$2M
Drive electric, therm, cost, and GHG
savings for customers
Program expected to run 2024-2026 12
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•
Item 5
PRESENTATION
Other +$0.75M
Objectives
Advance SVCE’s load flexibility
capabilities to prepare for increasing
load due to electrification and real¬
time pricing rates
Third-party evaluation of program
impacts
Impacts
Prepare to scale up load flexibility efforts
and automate customer response to real¬
time pricing rates
Details TBD - solicitation upcoming
Programs expected to run 2024-2027
Program Element Planned
Allocation
Virtual Power Plant +$0.5M
EM&V +$0.25M
13 Item 5
PRESENTATION
1 Recap: program summary
Planned allocations out of the $33.55M
Category Allocation Program
Expanded single family customer
participation in home electrification
Single Family Turnkey
+$16M Neighborhood Electrification
(renters, lower costs) Portable Heat Pumps
Customer awareness (experiential and
marketing)
eHub
+$11.5M Community Demonstration Grants
Programs Marketing Fund
E-mobility incentives +$2M
E-Bikes
Targeted EV Rebates and Education
Workforce +$1.3M Workforce Development Partnerships
C&l projects +$2M C&l Technical Support and Incentives
Other +$0.75M
Virtual Power Plant
EM&V
•
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Item 5
PRESENTATION
CD Plan for additional stakeholder input
Staff will refine
concepts through
additional input
Building on input
already received
and observed needs
Case study - Multifamily Direct Install program
Preliminary design completed based on known needs
Experienced vendor selected
Gathering more input
Holding a focus group with affordable housing managers
Working to do the same with tenants rights groups
Feedback loops built into program; plan to pivot
15 •
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Item 5
PRESENTATION
Today’s objective - seeking EC feedback
Asking for input on
staff’s intended
program funding
assignment
Future contracts for
this work will still come
to Board for approval
if >$100k
Next step is March Board approval (part of
mid-year budget discussion)
Staff will complete designs of programs and
launch
Continue to provide periodic updates on
program statuses and final design decisions
SILICON VALLEY
CLEAN ENERGY 16
Item 5
PRESENTATION
Discussion
17 Item 5
PRESENTATION
Appendix
18 Item 5
PRESENTATION
DETAIL: Expanded single family customer
participation in home electrification (+$16M)
Program Element Details Planned
Allocation
No-cost install for low-income Offer no-cost complete home electrification to income-qualified customers. Complement upcoming multifamily no-cost offer.
Emergency water heater replacement Quick-response installer to help in emergency failures. Provide a temporary heat pump if wiring upgrade work is needed for a permanent electric solution. +$14M
“Turnkey” install, with co-payment Provide a simple pathway for residents who want to electrify but don’t have time or knowledge. They still pay for the project themselves, after the SVCE rebates.
Neighborhood-scale electrification Combining projects in an area may lead to lower total costs.
Testing whether entire neighborhoods are willing to electrify at once is essential to future “gas system pruning” and scaling cost-effectively. +$1.5M
Portable heat pumps For renters and properties that aren’t good fits for more permanent heat pump solutions, these window unit heat pumps can provide electrification benefit.
+$0.5M
19 Item 5
PRESENTATION
DETAIL: Customer awareness (experiential and
marketing) +$11.5M
Program Element Details Planned
Allocation
eHub Components of the SVCE website that help customers on their electrification journey. Presently includes Solar/Battery Assistant, Appliance Assistant, and EV Assistant. Solicitation is ongoing to determine vendors for the second version.
+$1M
Community Engagement Grants Provide member agencies with grants to enhance their efforts to decarbonize their communities, demonstrate building
electrification, and/or increase community resilience. Focus on building customer awareness through local programs or
demonstrations. Will open competitive portion of grants to other community organizations.
+$10M
Programs Marketing Fund Separate funding to focus on marketing efforts to increase program enrollments. Covers email, social media, tabling, events, and other marketing channels.
+$0.5M
20 Item 5
PRESENTATION
DETAIL: E-mobility incentives +$2M
Program Element Details Planned
Allocation
E-Bikes Point of sale and post-purchase e-bike incentive that is income qualified.
+$0.5M
Targeted EV Rebates and Education The EV Education programming may consist of: Community Ride & Drive events where they are
not already happening, and/or incentivizing short¬
term EV rentals for customers to test drive EVs
and see how they integrate into their lifestyle. The
EV Incentives would provide incentives for new
and used EVs for income qualified customers.
+$1.5M
21 Item 5
PRESENTATION
(f) DETAIL: Workforce +$1.3M
Program Element Details Planned
Allocation
Workforce Development Partnerships Prepare workforce in SVCE territory to electrify buildings at scale. Identify opportunities to
supercharge regional electrification workforce
efforts. Invest in local workforce initiatives.
+$1.3M
22 Item 5
PRESENTATION
Q) DETAIL: C&l projects +$2M
Program Element Details Planned
Allocation
C&l Technical Support and Incentives Support energy and sustainability goals of C&l customers while strengthening customer
relationships with SVCE. Facilitate the completion
of energy efficiency and carbon emissions
reduction projects, particularly upgrading to
electric equipment.
+$2M
23 Item 5
PRESENTATION
(f) DETAIL: Other +$0.75M
Program Element Details Planned
Allocation
Virtual Power Plant Recruit, enroll, and encourage participation from customers in a demand flexibility service by
providing bill savings or incentives for customers
to earn, and minimal to no disruption in customer
convenience and comfort.
+$0.5M
EM&V Post-closing or mid-program evaluation and
measurement of a program’s impact, successes,
and challenges. Third-party validation of programs.
+$0.25M
24 $-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
FY18 FY19 FY20 FY21 FY22 FY23 FY24
$ Fund Size $ Spent
Item 5
PRESENTATION
Fund Allocation
Programs Fund Allocation FY24 Summary
Future / Still Planning ($36M)
(Proposed allocation for new
programs comes from here)
Planned to Go Live in
Coming ~4 Months ($23M)
Live I Available Now to
Customers ($31M)
Customer-Reserved
Incentives ($10M)
Spent ($16M)
(partial
year)
25 • Subtitle
New SV Clean Energy
PowerPoint Template
Item 5
PRESENTATION
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QjM Existing programs may help early adopters, but deeper assistance is needed to reach more single-family homes
Our programs address different customer needs and barriers eHub
Active
Online resource center for customers to
learn about electrification.
Go Electric Advisor
Active
One-on-one assistance for residential
customers via phone or web to learn how
to electrify their homes.
Incentives for single-family and small
multifamily properties to install heat pump
water heaters, heating/cooling systems,
and prewire for future circuits.
Single Family Installation
Coming Q3 2024
Electrification installation services
provided at no-cost to low-income
customers and cost-share for market-rate
customers. Includes emergency water
heater replacement.
Program Types
Technical assistance
Incentive
Direct install 27
•
•
•
•
•
Item 5
PRESENTATION
Single Family Installation Program
Target Market
Existing single-family properties (≤ 4 units)
3-year Budget*
$14M
Goals*
Fully electrify 600 households, including 250 low-income households
Upgrade 700 emergency failed water heaters
Program Elements
No-cost installation for low-income customers
Turnkey installation with cost-share contribution for market-rate customers
Emergency water heater loaner and upgrade
Collaboration*
Will align with similar upcoming Peninsula Clean Energy program to achieve administrative cost-savings 28
‘pending their contract approval, SVCE “piggybacking”
1 • Subtitle
New SV Clean Energy
PowerPoint Template
2023 Customer Survey
Findings
Executive Committee, Feb. 23, 2024
Adam Selvin, Michaela Pippin
Item 6
PRESENTATION
SILICON VALLEY
2 • Information item on annual residential customer survey to better understand our customers, which informs marketing and messaging. • Key takeaways show steady and expected levels of SVCE awareness, and growth in electrification interest and programs.
• Survey findings will be shared via consent at March board meeting.
Purpose
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PRESENTATION
SILICON VALLEY
CLEAN ENERGY
3 Background
SVCE runs an annual customer survey to measure SVCE and electrification awareness
Goal: Measure SVCE customer awareness and interest in electrification • 2023 survey conducted Aug. – Sept. 2023
• Past surveys
• September – October 2020
o March – April 2022
*2021 skipped due to vendor contracting delay
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PRESENTATION
4 Methodology – 2023 Survey
• Administered online, outreach conducted via email and mail o Provided in English, Traditional Chinese, Spanish and Vietnamese o Offered $10 incentive
• 653 survey respondents
Sample Design
• Stratified sample by SEVI quartile.
• Targeted 150 survey completions for each quartile.
• Weighted responses using SEVI quartile design weights with a post-stratification adjustment based on demographic characteristics. • Results account for sample bias
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PRESENTATION
5 Socio-Economic Vulnerability Index
Residential Customer
Engagement and Needs
by SEVI Census Tract
Quartile
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PRESENTATION
SEVI Quartiles
I
| 1st Quartile (Best off)
I I 2nd Quartile
I
~
] 3rd Quartile
4th Quartile (Worst off)
SILICON VALLEY
VyCLEAN ENERGY
6 Survey Completions
SEVI
Quartile
Number of
Responses
SEVI 1 167
SEVI 2 169
SEVI 3 163
SEVI 4 154
Total 653
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PRESENTATION
30.0%
25.0%
20.0%
15.0%
Percent of Customers Percent of Survey Respondents (2020) Percent of Survey Respondents (2022) Percent of Survey Respondents (2023) 7 SVCE awareness remains consistent with prior years
• Unaided recall of SVCE was 7% of respondents
• 73% of respondents heard of SVCE, once
prompted
o No statistically significant increase from past
surveys
Key takeaway: Most customers think of PG&E first
as their power provider; majority do not know
distinction of electric generation service
70%
18%
9%
2% 1%
74%
13% 9%
2% 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Does not know
who provides
electricity
generation service
SVCE PG&E Other SVCE-Close
Who provides electricity generation service?
2023 2022
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PRESENTATION
8 Understanding of SVCE Trends
Customers understand we provide clean electricity
• A larger share of customers
understood this about SVCE
compared to past years
• Could be result of increased
communications around our PPAs
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PRESENTATION
Believes that SVCE...
2003 2D22 2D2D
9 Our digital engagement efforts are paying off
• Share of customers who reported visiting the
SVCE website in 2022 and 2023 is 22%, up from
14% in 2020
• 6% of respondents cited the SVCE website as a
source of information on EVs. More SEVI 4
customers were likely to use this as a source of
information than those in SEVI 1 or SEVI 3.
Key takeaway: We are driving interest from
customers not otherwise seeking info about
electrification.
Website Visit Trends
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PRESENTATION
2023 «2022 2D2D
10 43% Awareness of select programs
• Awareness highest for efficient,
electric appliance rebates (FutureFit
Homes)
5%
10%
12%
16%
21%
36%
43%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Don't Homecrastinate education campaign
Education Fund grants or the Empower Silicon
Valley Film Competition
eHub, online resource center
GridShift EV Charging
Heat Pump Water Heater rebate
Rebates for efficient, electric appliances
Awareness of any program
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PRESENTATION
11 Cost, health and safety were the most important
considerations in making purchasing decisions
• Convenience and performance were ranked higher for those customers in SEVI 1 quartile than those in SEVI 4 quartile
Key takeaway: Affordability, health and safety – aligns with key messages in existing buildings electrification work
2.0 2.7 2.8
2.5 1.0
1.5 2.0
2.5 3.0
3.5 4.0
Environmental impacts Health and safety Cost Convenience/performance (4 = Ranked most important 1 = Ranked least)
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PRESENTATION
1 1 II
12 Cost was cited in the top 5 barriers for each technology Technology-specific barriers that were among the top 5 barriers for each technology:
• EVs: Driving range and charging location
• Heat pump water heaters: Not enough info, need to upgrade electric panel, and technology reliability.
• Solar/battery: Not enough info, technology reliability and “other” barriers. • The other barriers included site conditions (other than roof), HOA / Condo approvals needed, not cost-effective, and roof type or condition issues.
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13 Smart thermostats, heat pump heating and cooling systems, and EV chargers most likely purchases in the next three years Key Takeaway - Increased interest in heat pump water heaters! Item 6
PRESENTATION
evaluation equpment cooingsystem
2023 2022
14 Heat Pump Water Heater Results – At A Glance
Key takeaways – Need to address barriers, and utilize key channels for how customers get more info about these kinds of technologies 43%
40%
16%
Likelihood of Choosing
HPWH
Extremely or very likely
Somewhat likely
Not so / not at all likely
8%
10%
10%
9%
20%
20%
28%
0% 10% 20% 30%
Social media such as
Facebook or Instagram
Plumber
Contractor
SV Clean Energy
website /Appliances
Assistant online tool
Friend or family
News
Do it yourself or home
renovation media
Key Sources of Information
13%
30%
31%
36%
54%
0% 20% 40% 60%
Reliability of the
technology
Don’t know enough
information
Need to upgrade
electric system
Cost of electricity to
heat water
Cost of purchase and
installation
Top 5 Barriers
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PRESENTATION
15 Beliefs about electric homes mixed
• A clear majority (73%) of customers believed that all-electric homes improve indoor and outdoor air quality, but they were split as to whether or not they were more energy efficient (54% thought they were).
• Sixty-four percent thought they were expensive.
Key takeaway: Lots of continued education is needed, with an emphasis on affordability, i.e., rebates, E-ELEC rate, IRA tax credits, etc.
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PRESENTATION
16 EV Takeaways
• Multi-family home residents were more likely to report that not having a location to charge was a barrier to ownership, which confirms our understanding and programmatic approach.
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PRESENTATION
Table 3-25 Barriers by Multifamily and Single Family Home Type Barrier Single Family Multifamily
Cost of purchasing or leasing an electric vehicle 44% 54% Cost of operating an electric vehicle including electricity costs 22% 16% Driving range of the vehicle* 54% 41%
Reliability of the technology 14% 14%
Don’t know enough information about electric vehicles* 4% 12% Not enough models or styles to choose from 8% 5%
Not having a place to charge the vehicle at my home* 20% 42% Not knowing where 1 can charge it away from my home 28% 26% Concern about the safety of electric vehicle battery systems 20% 15% Unable to find one for sale 2% 3%
Other 16% 12%
*Indicates statistically significant difference across all groups at the p < .05 level. 17 Opportunity to grow interest in induction cooking
• 49% not interested
• When asked what information on induction
cooktops would be of interest, information on
differences in the technology from gas ranges
was the most desired information (18%).
• Key Takeaway – Need more outreach and
education, big opportunity coming with new
induction rebate.
Check out our latest induction
reel!
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PRESENTATION
18 • Results are aligned with expectations for SVCE awareness • Technology-specific results offer insights into tailored messaging • New or expanded marketing and outreach opportunities for different customer segments
Summary
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SILICON VALLEY
CLEAN ENERGY
19 Questions?
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20 Appendix
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21 Sample Bias
• Higher self-reporting technology
adoption led the team to question
sample bias assumptions
• Example – solar ownership reported
higher rates compared to
interconnection data, specially for
SEVIs 3 & 4
• Differences between survey sample
and population estimates may reflect
differences in ownership of systems,
misunderstanding of the question or
response options, or a combination of
these factors.
• Similar issues with EV and heat pump
water heater ownership reporting
Solar and Battery Ownership SEVI 1 SEVI 2 SEVI 3 SEVI 4 Solar without battery (Survey respondents) 18% 14% 12% 17% Solar without battery (Interconnection analysis) 14% 13% 8% 8% Solar with battery (Survey respondents) 8% 7% 5% 4%
Solar with battery (Interconnection analysis) 2% 2% 1% 0% Comparison of Survey and Interconnection Analysis
Estimates of Solar and Battery Storage
Item 6
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