1 • Subtitle
New SV Clean Energy
PowerPoint Template
2025 Clean Power Supply
Recommendation Offerings
Executive Committee Meeting
May 24, 2024
Item 4
PRESENTATION
2 What we will discuss today
• Overview of SVCE product offerings
• Continued challenges with carbon-free energy procurement for 2025
• Request to support recommendation to the Board to relax the 100% Carbon-free target for 2025
Item 4
PRESENTATION
3 SVCE Product Offerings 2024
GreenStart –
78-85% Clean
Standard offer
~50% from Renewables
~28-35% Carbon-free (large
hydro and nuclear*)
GreenPrime –
100%
Renewable
Opt-up premium
product
100% Renewable
$0.015 premium
*currently only PG&E allocations of Diablo Canyon
GreenPrime Direct – Available to only certain commercial industrial customers
Other:
Item 4
PRESENTATION
4 Product Mix
GreenStart GreenPrime
Clean Energy
Standard
78-85% Clean Energy measured annually 100% Renewable Energy or RPS measured annually
Product Content RPS above California’s RPS or ~50% via
Power Purchase Agreements (PPA) and Short-term PCC1 RECs +
Balance from Carbon/GHG-free non-RPS
resources
100% RPS via PPA and Short-term PCC1 RECs.
PCC3 RECs only used if necessary to meet
increased participation requirements.
Eligible Resources RPS: CEC defined, solar, geothermal, biomass, small hydro, and wind
Carbon-free: Large Hydro and nuclear
allocations
Portfolio PCC1 RECs.
Rate Set at discount to PG&E GreenStart rate + $0.015 premium Customers 90-95% of retail load 5% of retail load
Emissions Low to zero zero
Item 4
PRESENTATION
5 Board Directive for 2024
SVCE Board relaxed GreenStart Clean target for 2024 due to lack of affordable supply.
Parameters:
1. Continue to seek carbon-free resources within budget parameters for calendar year 2024
2. Approve the procurement of nuclear carbon-free resources, provided:
1. Allocations from PG&E are not available
2. Sufficient volume is available to achieve 100% Clean below budget
3. If carbon-free resources are not available within budget, adjust 100% Clean goal for 2024 to current position of ~78% Clean
Staff was not able to procure sufficient carbon-free resources for 2024 to achieve 100% Clean. Latest estimate for 2024 is 80% Clean.
Item 4
PRESENTATION
6 GreenStart: Carbon Free Market Implications
• Renewable Energy Certificates (RECs) and non-renewable, carbon-free attributes remain at record high levels.
• In 3 years, market prices have increased six-fold signifying a dramatic rebalancing of supply and demand.
• Recent RFOs and market surveys have confirmed that the carbon free attribute has become a scarce resource
• Large Hydro resources from Northwest have
historically provided carbon-free to California, however Northwest is undergoing multi-year drought
• Hydro allocations from PG&E are highly uncertain
• SVCE's nuclear allocation from Diablo Canyon will be reduced starting in 2024
• Additional affordable nuclear attributes were not found Market Conditions that
led to 2024 situation
persist.
For 2025 it is expected
to cost tens of
million to fill clean
position for GreenStart.
Finding sufficient
supply remains a
challenge.
Item 4
PRESENTATION
7 GreenStart: Options for 2025
Option Description Benefits Drawbacks
#1 Revert to 100% Carbon Free for 2025
Expected reportable emissions on Power
Content Label: 74 lbs of Co2*
• Returns SVCE’s historic
product offering
• Unlikely
• If possible expensive
• Limited emissions
reductions for grid
#2 Stick with current Carbon Free position
(~78%-85% in 2025) which assume
PG&E Large Hydro allocations and a
lower amount of Diablo Canyon Power
Plant allocations.
Expected reportable emissions on Power
Content Label: ~170 lbs of Co2
• Lower power supply
cost, which helps
maintain SVCE reserves,
discount and/or
program funding
• May create concern
from customers,
especially GreenStart
customers with
Climate Action Plans
*emissions associated with Coso Geothermal renewable resources, which will change starting in 2026 Item 4
PRESENTATION
8 Outlook and Next Steps
Ability to achieve 100% Clean target through short-term procurement and/or allocations will continue to be a challenge
• Return with recommended overall Clean target for CY 2026- 2030 as part of 2024 Integrated Resource Plan and 2045
Pathway to Carbon Neutral discussion
• Re-assess GreenStart and GreenPrime offerings holistically with consideration for findings from above analysis including product value proposition, cost allocation, hedging and price premium • Pathways assessment expected to come to Executive
Committee and/or Board in August/September 2024
Item 4
PRESENTATION
9 Request of Executive Committee: GreenStart
Staff recommends the Executive Committee recommend the Board approve the following for 2025:
1. Continue to seek carbon-free resources within Board
parameters approved for 2024 for calendar year 2025
2. If carbon-free resources are not available and/or the cost is not within budget, adjust 100% Clean goal for 2025 to
current position of ~78% to 85% Clean, depending on
carbon-free allocations from PG&E – Option #2 – Slide 7
3. For FY 2024-2025 proposed Operating Budget, assume 85% Clean position. Board to consider Budget in September 2024 Item 4
PRESENTATION
10 • Subtitle
New SV Clean Energy
PowerPoint Template
Questions & Discussion
Item 4
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 5
PRESENTATION
•
•
•
•
•
•
Item 5
PRESENTATION
CD Overview
Fiscal Year 2024-25 Strategic Planning & Budget process Review existing Strategic Focus Areas (SFA)
Highlight progress on SFAs
Staff’s input and direction on SFAs
Receive feedback
Next Steps
2 Item 5
PRESENTATION
Past Strategic Plan Development Process
May
June
August
Sept.
Oct.
Strategic Focus Areas development and discussion with Executive Committee begins; New Strategic Plan amendments with leadership team begins Continued updates to new Strategic Plan with leadership team; BOD receives update on progress
Update provided to Executive Committee;
Leadership team makes final edits to new plan
BOD adopts Strategic Focus Areas and receives update on Strategic Plan progress Workplan is approved on BOD Consent Calendar
3 Item 5
PRESENTATION
0 SVCE Planning & Budgeting Process
Budget
Organization-wide priorities and
alignment toward achieving the mission.
Helps set CEO & Board priorities.
Comprehensive assessment of risks and
opportunities to optimally achieve mission and
helps direct strategic focus areas.
Identifies funds needed to achieve
Strategic Focus Areas and Strategic Work
Plan
SVCE Mission: Reduce dependence on fossil fuels by
providing carbon-free, affordable, and reliable
electricity and innovative programs for the SVCE
community. REMAINS THE SAME!
4 Item 5
PRESENTATION
O Strategic Focus Areas
9 Scan the Landscape
• New Threats/Risks/Challenges
• Opportunities
• New priorities -Board, customer or staff directed
Review and Reflect on Existing SFAs
• Progress on achieving -is it now operational?
• Priority - top 5 item to focus on for next 12 months? • Challenges -is the SFA unachievable or beyond our
scope?
Propose SFAs
• Existing
• New 5
Board Approved 5 Strategic Focus Areas
for FY 2024
SFA1 SFA2 SFA3 SFA4 SFA5
Item 5
PRESENTATION
Synergy & Overlap
Expand Clean &
Reliable Grid
Actions
Expand Customer
Base & Interaction
Accelerate Building
& Transportation
Electrification
Implement
Innovative
Financing Solutions
Attract & Retain
Employees
Explore 24x7 clean
energy delivery at
scale; evaluate
SVCE role in
enhancing
distribution and
transmission
reliability
Grow non-residential
customer base;
Expand Offerings &
emphasize
electrification to all
customers
Accelerate
deployment of
currently adopted
decarbonization
strategies and
goals; evaluate and
capitalize on
federal and state
funding
opportunities
Implement
innovative financing
solutions to
increase impact of
decarbonization
program offerings,
especially to lower-income customers
Be the Employer of
Choice, and
Increase Staffing;
Hire CEO
6 •
•
•
•
•
•
•
•
•
•
•
•
Item 5
PRESENTATION
SFA1: Expand Clean & Reliable Grid Actions
Explore 24x7 clean energy delivery at scale; evaluate SVCE role in enhancing distribution and transmission reliability
Progress to date:
Assess various clean metrics including 24x7, 100%
annual and CFE
Developed enhanced load forecasting capabilities
including new load modifiers for long-term forecast
Completed 1st year of Google CFE contract
Internal Tiger Team on SVCE’s role in distribution
enhancements
Participating in proceedings on transmission,
energization and interconnection enhancements
Demand Flexibility/VPP team, roadmap development
and Load Management Standard compliance report
Challenges & Opportunities: affordability; lack ofclean reliable resources; what do customers value; SVCE has little influence on distribution and transmission related costs.
What’s to come:
Develop pathway scenarios for 2030, 2035 and 2045
2024-2035 Integrated Resource Plan
Participate and advocate for Regionalization
Deployment of Demand Flex & VPP roadmap
Revamp of GreenStart and GreenPrime
Continued advocacy on energization and
interconnection enhancements
•
• Continued to launch new programs to target
new customers (e.g. Go Electric Advisor)
• Google CFE Framework implementation
• New programs (e.g. multifamily and single
family direct install programs)
• New C/I Decarbonization program
•
• Continuing to adjust existing programs based
on feedback.
• Increasing stakeholder engagement around
program offerings to learn more
Item 5
PRESENTATION
SFA2: Expand Customer Base & Interaction
Grow non-residential customer base; Expand Offerings & emphasize electrification to all customers
Progress to date:
Maintained rate discount 4% w/plan for 4%
next two years
What’s to come:
C/l team seeking new DA opportunities
Challenges & Opportunities: Lengthy timelines for DA conversion and market expansion opportunities; large decarb potential for large commercial customers 8 • New portfolio management tool being deployed
• Improvements to internal processes for program
design, launch, and re-launch
• Rapid progress on large programs (FFH, GEA,
CHAMP, Single Family Install)
• Policy and permitting experimentation and
reform getting traction with member agencies
• Advocacy and analysis around IGFC
•
•
•
•
•
Item 5
PRESENTATION
SFA3: Accelerate Building & Transportation
Electrification
Accelerate deployment of currently adopted decarbonization strategies and goals; evaluate and capitalize on federal and state funding opportunities Progress to date: What’s to come:
Pursuit of grant funding (SVCE and member
agencies)
Deploy dollars to member agencies for
localized decarb projects/programs - $10M
Grants
Continue stakeholder engagements and
integration into design (incl. program equity
training)
Continue workforce development support
Coordination on BAAQMD rules
Challenges & Opportunities: Cost of funding to scale; BAAQMD rule amendments coming; Reach Codes at risk; affordability and reliability concerns • Evaluation of program funding options for full
electrification
• Tariff On Bill discussions with state/IOUs and
developing our own pilot plan
• Participating in CC Power Build Transfer
Ownership RFP to get direct IRA benefits for
new renewable projects
• Launch TOB pilot later this year
•
• Assess cost of abatement for various measures
Item 5
PRESENTATION
SFA4: Implement Innovative Financing Solutions
Implement innovative financing solutions to increase impact of decarbonization program offerings, especially to lower-income customers Progress to date: What’s to come:
Finalize Decarbonization Funding White
Paper
Challenges & Opportunities: CPUC moving too slowly on TOB approval; California budget deficit
•
•
•
•
•
•
•
•
•
•
•
•
•
Item 5
PRESENTATION
SFA5: Attract & Retain Employees
Be the Employer of Choice, Increase Staffing and hire new CEO Progress to date:
Hired new HR Director
Hired new CEO
Hired new General Counsel
One employee separated since FY 23-24
11 new employees - now at 60 total
8 Promotions
Enhanced on-boarding process
Enhanced remote work practices
Challenges & Opportunities: additional compliance needs with growth, increasing benefits costs (prices & staff maturation), continued competitive environment for talent 11 What’s to come:
Individual learning and development plan to
meet core competencies
2 new hires in process, five pending
Rollout of new employee system
Policy revamp and new standards
Benchmark compensation & benefits project
with CaICCA to inform future needs
•
•
•
•
•
•
•
•
•
•
•
•
Item 5
PRESENTATION
O Staff Input on SFAs
SFA1: Expand Clean & Reliable Grid Actions
Keep and modify to focus on Pathways study (not just 24/7) and clean value proposition SFA2: Expand Customer Base Interaction
Keep and modify to focus on C/l decarbonization efforts SFA3: Accelerate Building Transportation and Electrification Keep and modify to focus on preparing for BAAQMD Rule implementation SFA4: Implement Innovative Financing Solutions
Drop as much progress has been made and operationalized SFA5: Attract and Retain Employees
Keep and modify to focus on employee retention and establishing optimal workforce New SFA: Affordability
Identified as a key issue/challenge which may impact SVCE’s ability to achieve its mission 12 Item 5
PRESENTATION
O Strategic Work Plan & Focus Areas
a
qqq
Q Q QQQ
Q Q QQ
Q Q QQQ
00@ @0 @ 00®@00
000000000000
000000000000
000000000000
000000000000
13 Feb-May
Staff Input
Review current SFAs
New Opportunities &
Threats
May-Aug
Board Input
Strategic Plan &
Budget - focus
September
Approve Budget,
Strategic Focus
Areas & SP
Oct
Present detailed
work plan and
measures (Oct)
Oct-Sep
Implementation
FY 24-25 Strategic Plan & Budget Process
❑
❑
❑
❑
❑
❑
❑
❑
❑
Item 5
PRESENTATION
^^\Feb to May -Staff input; risks, opportunities, priorities, resources, budget etc.
May 13 -Finance Committee -Budget Overview
May 24 -Executive Committee -Strategic Plan, Strategic Focus Areas Overview & direction June 12 -Board -Strategic Plan & Budget Overview
August TBD- Finance Committee -Budget Recommendation
August 14 -Board -Budget Feedback
August 23 -Executive Committee -Strategic Plan, Strategic Focus Areas Update September 11 -Board -Strategic Focus Areas and Budget Approval October 9- Board - SVCE Work Plan Approval - TBD
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 6
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
Community Resilience
Grant Program
May 24, 2024
Executive Committee Meeting
•
•
Item 6
PRESENTATION
Building Resilience in Our Communities
The board approved $5M in funding in June 2020 to help our region reduce the impacts of power outages and climate emergencies while supporting decarbonization and local job creation.
The Program:
Provides grants to each agency to invest in capital projects that support municipal and community resilience
Concludes in December 2024
2 •
•
o
•
Item 6
PRESENTATION
Innovative Projects Increase Resilience Across
Region
At program completion:
9 battery back projects that provide clean power backup at critical facilities or traffic lights
5 off-grid EV charger projects that can provide mobile, clean, resilient charging during power outages
2 Ford F-150 Lighting trucks for fleet use (optional add-on) 1 urban heat island reduction demonstration
3 •
•
•
•
Item 6
PRESENTATION
Program Success Required High-Level Support and
Flexibility
Hands-on support for member
agencies:
Created a streamlined process
to access funds
Access to consultants for
technical assistance
Developed resources for
agencies and SVCE to consider
energy resilience in existing
and future efforts Solar + battery installed at Milpitas’ Community & Senior Center 4 Item 6
PRESENTATION
Building and EVI Resilience
City of Cupertino City of Sunnyvale
Off-grid EV chargers (EVARCs) at Cupertino Library Solar + battery installed at Sunnyvale’s City Hall 5 Item 6
PRESENTATION
0 Emergency Operations & Heat Mitigation
City of Saratoga
Battery backup at traffic light signals throughout city Town of Los Altos
Cool pavement coating in downtown Los Altos
Projects can be found on the program webpage: https://svcleanenergy.org/community-resilience/ 6