Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the Clerk for the Authority at (408) 721-5301 x1005. Notification 48 hours prior to the meeting will enable the Authority to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.105 ADA Title II).
Tina Walia, Chair
City of Saratoga
George Tyson, Vice Chair
Town of Los Altos Hills
Elliot Scozzola
City of Campbell
Sheila Mohan
City of Cupertino
Zach Hilton
City of Gilroy
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
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
Silicon Valley Clean Energy
Executive Committee Meeting
Friday, August 23, 2024
10:00 am
Silicon Valley Clean Energy Office
333 W. El Camino Real, Suite 330
Sunnyvale, CA
Morgan Hill City Hall
17575 Peak Ave.
Morgan Hill, CA 95037
Villanueva 547
M5507 Lujan de Cuyo
Mendoza, Argentina
Teleconference Meeting Information:
https://svcleanenergy-org.zoom.us/j/84237492586
Telephone (Audio only):
US: +1 669 219 2599
Webinar ID: 842 3749 2586
Members of the public may observe this meeting electronically by accessing the meeting via instructions above. Public Comments can be sent in advance of the meeting via email up to three hours before the meeting begins to Board Clerk Andrea Pizano at [email protected] and will be distributed to the Executive Committee. The public will also have an opportunity to provide comments during the meeting. Members of the public using Zoom may comment during public comment or the applicable agenda item by using the Raise Hand feature and you will be recognized by the Chair. Those using the telephone (audio only) feature should press star 9 on your phones to initiate the “Raise Hand” function in Zoom. You will then be announced, unmuted, and your time to speak will begin.
The public may provide comments on any matter listed on the Agenda. Speakers are customarily limited to 3 minutes each, however, the Committee Chair may increase or decrease the time allotted to each speaker based on the number of speakers, the length of the agenda and the complexity of the subject matter. Speaking time will not be decreased to less than one minute.
If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (“ADA”) please contact Board Clerk Andrea Pizano at [email protected] prior to the meeting for assistance.
AGENDA
Call to Order
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Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the Clerk for the Authority at (408) 721-5301 x1005. Notification 48 hours prior to the meeting will enable the Authority to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.105 ADA Title II).
Tina Walia, Chair
City of Saratoga
George Tyson, Vice Chair
Town of Los Altos Hills
Elliot Scozzola
City of Campbell
Sheila Mohan
City of Cupertino
Zach Hilton
City of Gilroy
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
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
Roll Call
Public Comment on Matters Not Listed on the Agenda
The public may provide comments on any matter not listed on the Agenda provided that it is within the subject matter jurisdiction of SVCE. Speakers are customarily limited to 3 minutes each, however, the Committee Chair may increase or decrease the time allotted to each speaker based on the number of speakers, the length of the agenda and the complexity of the subject matter. Speaking time will not be decreased to less than one minute.
Consent Calendar (Action)
1) Approve Minutes of the June 28, 2024, Executive Committee Meeting Regular Calendar
2) CEO Update (Discussion)
3) Request the SVCE Executive Committee Recommend the Board of Directors Adopt the FY 24/25 Strategic Focus Areas and Strategic Plan (Action) 4) Request the SVCE Executive Committee Recommend the SVCE Board of Directors Approve the Expanded Education Fund in the Amount of $100,000 (Action)
5) Introduction to 2024 Member Agency Grants (Discussion) 6) Program Snapshot: Multifamily Retrofits (Information Only) Committee/Staff Remarks
Adjourn
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Staff Report – Item 2
Item 2: CEO Update
From: Monica Padilla, CEO
Prepared by: Andrea Pizano, Sr. Executive Assistant and Board Clerk Date: 8/23/2024
This item will be addressed in the form of an oral report to the Executive Committee.
Item 2
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Staff Report – Item 3
Item 3: Request the SVCE Executive Committee Recommend the Board of Directors Adopt the FY 24/25 Strategic Focus Areas and Strategic Plan
From: Monica Padilla, CEO
Prepared by: Andrea Pizano, Sr. Executive Assistant and Board Clerk Date: 8/23/2024
RECOMMENDATION
Staff requests the SVCE Executive Committee (“Committee”) recommend the SVCE Board of Directors (“Board”) adopt the following five proposed Fiscal Year 2024-2025 (FY 24/25) SVCE Strategic Focus Areas (Attachment 1), and the FY 24/25 Strategic Plan (“Plan”), as outlined in Attachment 2:
1. Expand Affordability Efforts
2. Expand Clean and Reliable Grid Actions
3. Expand Offerings to Commercial Industrial (C/I) Customers
4. Prepare Region for Electrification at Scale
5. Attract and Retain Employees
BACKGROUND
The Board has adopted annual Strategic Focus Areas since 2021. Adopting Strategic Focus Areas is useful for the Board and SVCE’s Chief Executive Officer (CEO) to establish high-level priorities. Although there are many focus areas, a handful are selected to spotlight for the year (and in many cases, remain a focus beyond one year).
The Plan is reviewed and updated annually to guide staff’s work in meeting SVCE’s mission to reduce dependence on fossil fuels by providing carbon-free, affordable, and reliable electricity and innovative programs for the SVCE community.
Both the FY 24/25 Strategic Focus Areas and Plan were introduced at the May 2024 Committee and June 2024 Board meetings to receive initial feedback from Board members.
ANALYSIS & DISCUSSION
FY24/25 Focus Areas
Staff has incorporated prior feedback from the Committee and Board and will be requesting the Board approve and adopt the following five strategic focus areas (SFA) for FY 24/25:
SFA1: Expand Affordability Efforts: Expand rate-related education, legislative and regulatory advocacy, and rate-setting principles to support all-electric as the most affordable and competitive option for customers.
SFA2: Expand Clean and Reliable Grid Actions: Develop a pathway to 2030, 2035 and 2045 for clean energy delivery at scale; and evaluate SVCE product offerings to ensure the agency provides customers a sustainable balance of clean, reliable and affordable energy.
Item 3
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Agenda Item: 3 Agenda Date: 8/23/2024
SFA3: Expand Offerings to C/I Customers: Engage commercial and industrial customers in new and/or expanded SVCE offerings, including electrification and demand-side management programs, and customized generation services.
SFA4: Prepare Region for Electrification at Scale: Inform and prepare for upcoming requirements such as Bay Area Air Quality Management District (BAAQMD) and California Air Resources Board (CARB) rules to ensure they are implemented sensibly, successfully, and equitably; and continue scaling SVCE efforts.
SFA5: Attract and Retain Employees: Be the Employer of Choice and maintain culture of innovation, collaboration, high performance, and passion for our mission.
There have been no changes to these proposed focus areas since they were last presented to the Committee and Board. Attachment 1 expands on the strategic focus areas including initiatives and efforts staff will prioritize in the coming year.
FY24/25 Strategic Plan
Staff have been developing the updated Plan since May 2024, taking input from the discussions with the Committee, Board, and across the organization. Past plans have been focused on the goals of each department, but since SVCE has grown and matured, cross-collaboration with all departments has become more apparent and essential to SVCE’s ability to carry out its mission. The work SVCE performs can be summarized in the following functions, with multiple groups working together:
• External Policy, Regulatory and Legislative Advocacy and Support • SVCE Strategy and Planning
• Power Procurement, Management and Operations
• Financial Planning
• Program Development and Implementation
• Customer Service and Community Relations
• Human Resources, Business Processes, Information Technology, Systems and Data Governance The proposed Plan has been organized by the functions above.
Through a series of meetings and retreats, the SVCE leadership group (in conjunction with work within their teams) have identified 11 key goals proposed as part of the Plan (Attachment 2). The number of goals included for the upcoming year is a decrease from last year’s Plan, which consisted of 25 goals. When staff began the process of developing the Plan, there was an intention to consolidate, eliminate redundancies, and ultimately highlight the goals that made the most sense from an organizational standpoint.
Table 1 is a summary of the proposed Plan including goals and reference to specific strategic focus areas.
Item 3
Agenda Item: 3 Agenda Date: 8/23/2024
Table 1: SVCE Proposed FY 24/25 Strategic Plan Goals
Functional Area Goal Strategic Focus
Area
External Policy,
Regulatory and
Legislative Advocacy
and Sup
1. Advance policies which support SVCE’s mission to
reduce dependence on fossil fuels.
SFA1, SFA4
SVCE Strategy and
Planning
2. Long-term, target for 100% clean energy annually by
building a balanced portfolio with consideration for
both affordability and reliability while exploring long-term pathways to clean power supply.
SFA1, SFA2
3. Create a long-term decarbonization plan that
integrates supply and demand changes, opportunities,
and challenges.
SFA1, SFA2
Power Procurement,
Management and
Operations
4. Acquire power supply resources in a cost-effective
manner to meet legislative and regulatory obligations,
Board directives and customer specific products.
SFA2, SFA3
5. Manage and optimize load and power resources to
meet affordability, GHG reduction and reliability
objectives.
SFA1, SFA2
Financial Planning 6. Avoid failures in management of market risk, credit risk, liquidity risk, operational risks, and enterprise risks.
7. Maintain healthy financial position.
Program Development
and Implementation
8. Support all SVCE communities to decarbonize through
local investments that reduce barriers and
demonstrate sensible, scalable, and equitable
solutions.
SFA1, SFA2,
SFA3, SFA4
Customer Service and
Community Relations
9. Engage customers and community stakeholders to
build trust of SVCE and advance decarbonization.
SFA1, SFA3,
SFA4
Human Resources,
Business Processes,
Information
Technology, Systems
and Data Governance
10. Implement industry best practices to enable data-driven decision making across the organization; enhance systems, standards and procedures to
streamline business processes and improve
operational effectiveness and reliability (aka SVCE
3.0).
11. Hire, retain and develop high-performing talent via competitive benefits and rewarding work culture.
SFA5
The accompanying measures for the Plan are provided in Attachment 2. These measures are shown to provide the Board a sense of the types of initiatives, programs and/or efforts staff are undertaking in support of the goals. These measures identify how staff plan to track and guide work to meet the goals that have been identified. The measures are not intended to be static as priorities change throughout the year and as such not a part of the Board-approved Plan.
Should the Board approve the Strategic Focus Areas and the Strategic Plan for FY 24/25, staff will proceed with tracking progress on the goals outlined in the Plan, and updates will be provided to the Board quarterly.
Item 3
Agenda Item: 3 Agenda Date: 8/23/2024
STRATEGIC PLAN
The focus areas support the overall SVCE Strategic Plan.
FISCAL IMPACT
N/A
ALTERNATIVE
Staff is open to suggestions and feedback from the Board on the proposed Focus Areas.
ATTACHMENT
1. FY24/25 Proposed Strategic Focus Areas
2. FY 24/25 Draft Strategic Plan
Item 3
Proposed FY 24/25 Strategic Focus Areas
SFA1: Expand Affordability Efforts
Expand rate-related education, legislative and regulatory advocacy, and rate-setting principles to support all-electric as the most affordable and competitive option for customers.
• Education: Develop and execute educational and outreach initiatives to help stakeholders and customers understand key affordability issues, and customer outreach to reduce bills and enroll customers in existing CARE and FERA low-income programs. • Advocacy: Refine an affordability policy platform and advocate for priorities at regulatory bodies and at the legislature which promote affordability, cost transparency and proper cost allocations.
• Internal Rate Analysis: Create dedicated rate analysis and cross-functional team to work on a rates strategy including analysis on alternate rate designs. Understand PG&E's rates and cost drivers.
SFA2: Expand Clean and Reliable Grid Actions
Develop a pathway to 2030, 2035 and 2045 for clean energy delivery at scale; evaluate SVCE product offerings to ensure the agency provides customers a sustainable balance of clean, reliable and affordable energy.
• Develop pathways to 2030, 2035 and 2045 with clear measure of clean including an assessment of achieving carbon free on a 24x7 basis.
• Ensure retail product offerings are sustainable and balance SVCE clean, reliable and affordable needs.
• Assess potential and ability to cost-effectively reduce GHG emissions within SVCE’s service territory.
• Support regionalization and/or expansion of grid and markets to promote the efficient deployment of clean resources.
SFA3: Expand Offerings to Commercial Industrial C/I Customers Engage commercial and industrial customers in new/expanded SVCE offerings, including electrification and demand-side management programs, and customized generation services.
• Launch C&I decarbonization and electrification services. • Pilot C&I dynamic rates to promote demand-side flexibility. • Pursue additional long-term generation service agreements with current and prospective. qualifying customers.
• Expand outreach and education efforts with large C&I customers. • Develop and test key account strategy and engagement.
Item 3
Attachment 1
Proposed FY 24/25 Strategic Focus Areas
SFA4: Prepare Region for Electrification at Scale
Inform and prepare for upcoming requirements such as BAAQMD and CARB rules to ensure they are implemented sensibly, successfully, and equitably; continue scaling SVCE efforts. • Continue to develop, deploy, and scale approaches to address key barriers and help the region implement at-scale electrification that works for all customers. • Help SVCE customers, workforce, and other stakeholders prepare for the roll-out of widespread electrification through programs, policies, and initiatives that reduce friction and increase equitable participation in the decarbonization transition. • Leverage SVCE program and policy experience to inform regional plans for electrification requirements.
SFA5: Attract and Retain Employees
Be the Employer of Choice and maintain culture of innovation, collaboration, high performance, and passion for our mission.
• Attract and hire top talent, retain and develop current staff and future leaders. • Build and maintain a high-performance agency; encourage employee innovation, engagement, and collaboration.
• Preserve culture and determine optimal organization size and alignment.
Item 3
Attachment 1
Draft FY 24/25 Strategic Plan
External Policy, Regulatory and Legislative Advocacy and Support Goal 1: Advance policies which support SVCE’s mission to reduce dependence on fossil fuels.
Measures:
M1: Develop and advocate for an affordability policy platform.
M2: Enact a strategy that eases the transition away from gas appliances.
M3: Advocate for policies that enable SVCE to meet our customer’s needs with clean energy and distributed energy resources.
SVCE Strategy and Planning
Goal 2: Long-term, target for 100% clean energy annually by building a balanced portfolio with consideration for both affordability and reliability while exploring long-term pathways to clean power supply.
Measures:
M1: Develop sustainable and cost-effective customer specific products and rates M2: Develop internal scenario analyses to assess risks and opportunities related to long-term procurement, with consideration for both supply and demand side opportunities.
Goal 3: Create a long-term decarbonization plan that integrates supply and demand changes, opportunities, and challenges.
Measures:
M1: Expand knowledge and insight into load modifiers to improve internal load forecasting.
M2: Advance understanding of load flexibility and distributed energy resources (DERs) portfolio and customer value.
M3: Determine cost-effective DER and virtual power plant (VPP) potential for SVCE’s portfolio as well as market structures to enhance potential.
M4: Share plan with Board and adjust ongoing work accordingly.
Power Procurement, Management and Operations
Goal 4: Acquire power supply resources in a cost-effective manner to meet legislative and regulatory obligations, Board directives and customer specific products.
Measures:
M1: Annually and/or per compliance period, meet or exceed agency goals for clean and reliable electricity.
M2: Deploy local renewables and VPP resources to enhance resiliency and manage power supply costs.
Goal 5: Manage and optimize load and power resources to meet affordability, GHG reduction and reliability objectives.
Item 3
Attachment 2
1 Draft FY 24/25 Strategic Plan
©
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Draft FY 24/25 Strategic Plan
Measures:
M1: Schedule load and power resources consistent with risk management and CAISO tariff requirements.
M2: Look for ways to measure and further optimize assets to minimize cost and/or maximize wholesale revenues.
M3: Manage power supply contracts including timely settlements, monitoring and reporting on contract and project performance.
Financial Planning
Goal 6: Avoid failures in management of market risk, credit risk, liquidity risk, operational risks, and enterprise risks.
Measures:
M1: Implement a comprehensive enterprise risk management program to manage risks and capture opportunities optimally.
M2: Maintain, enhance, and administer energy risk management policy.
M3: Develop optimal hedge targets to manage market risks.
Goal 7: Maintain healthy financial position.
Measures:
M1: Maintain adequate reserves/financial liquidity to withstand risks and adequately fund SVCE’s mission.
M2: Maintain investment grade credit ratings.
M3: Enable the organization to manage extreme but plausible risk events through the design of effective stress tests.
Program Development and Implementation
Goal 8: Support all SVCE communities to decarbonize through local investments that reduce barriers and demonstrate sensible, scalable, and equitable solutions.
Measures:
M1: Provide incentives and resources that make it easier for residential customers to upgrade to all-electric living.
M2: Offer programs and services that help local non-residential customers meet their environmental and financial objectives.
M3: Support member agencies in deploying electrification and preparing their communities for the electric future including resiliency needs.
Customer Service and Community Relations
Goal 9: Engage customers and community stakeholders to build trust of SVCE and advance decarbonization.
Item 3
Attachment 2
2 Draft FY 24/25 Strategic Plan
©
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Draft FY 24/25 Strategic Plan
Measures:
M1: Empower customers with the awareness, knowledge and resources to make effective clean energy choices.
M2: Build coalitions with local leaders and policy makers to enable widespread electrification through showcasing SVCE’s investments in the community
M3: Manage delivery, billing, and support of SVCE’s services to customers with a high degree of professionalism, accuracy and responsiveness.
Human Resources, Business Processes, Information Technology, Systems and Data Governance
Goal 10: Implement industry best practices to enable data-driven decision making across the organization; enhance systems, standards and procedures to streamline business processes and improve operational effectiveness and reliability (aka SVCE 3.0).
Measures:
M1: Enhance, maintain, and administer Business Process Optimization systems including: Energy Trade Risk Management and Settlement; Meter Data Management; Data Analytics In SVCE Territory (DAISY) platform; Net Revenue and Portfolio Valuation software; asset and battery optimization tools; load forecasting; task management software; and human resources software to enable effective and efficient business operations.
M2: Develop an Information Technology Governance model with defined scope, roles and proper management of data.
M3: Streamline board-approved policies and create standardized business processes and practices.
M4: Ensure Information Technology is secure, reliable, and disaster resilient through continued strengthen cybersecurity protections and maintaining or exceeding industry-established cybersecurity scorecard targets.
M5: Remediate all critical vulnerabilities identified in the annual IT audit/security assessments.
Goal 11: Hire, retain and develop high-performing talent via competitive benefits and rewarding work culture.
Measures:
M1: Annually achieve less than 5% voluntary turnover.
M2: Maintain competitive benefits and pay by evaluating benefits against the market annually M3: Continue developing existing workforce to meet future organizational needs through talent reviews and individual development plans.
M4: Preserve SVCE culture of excellence, collaboration, innovation and fun.
M5: Support productive and effective hybrid work approach balanced with culture through flexible work, well planned in-person retreats and meetings, dedicated connection time and accountability and focus on deep work.
Item 3
Attachment 2
3 Draft FY 24/25 Strategic Plan
©
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Staff Report – Item 4
Item 4: Request the SVCE Executive Committee Recommend the SVCE Board of Directors Approve the Expanded Education Fund in the Amount of $100,000 From: Monica Padilla, CEO
Prepared by: Pamela Leonard, Deputy Director of Marketing & Communications Juli Miller, Community Outreach Fellow
Date: 8/23/2024
This item will be addressed in the form of a presentation to the Executive Committee regarding the Expanded Education Fund. Staff seeks feedback from the Executive Committee on enhancements to the agency’s education initiatives, as well as a recommendation for SVCE Board approval at the October board meeting.
ATTACHMENTS
The presentation for this item is posted to the SVCE website.
Item 4
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Staff Report – Item 5
Item 5: Introduction to 2024 Member Agency Grants
From: Monica Padilla, CEO
Prepared by: Jessica Cornejo, Senior Programs Specialist Date: 8/23/2024
This item will be addressed in the form of a presentation to the Executive Committee providing an introduction to the new noncompetitive and competitive grants available for member agencies.
ATTACHMENT
The presentation for this item is posted to the SVCE website.
Item 5
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Staff Report – Item 6
Item 6: Program Snapshot: Mutlifamily Retrofits
From: Monica Padilla, CEO
Prepared by: Leanna Huynh, Senior Programs Specialist
Date: 8/23/2024
This item will be addressed in the form of a presentation to the Executive Committee providing a snapshot overview of the Multifamily Retrofits program.
ATTACHMENT
The presentation for this item is posted to the SVCE website.
Item 6
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