1 • Subtitle
New SV Clean Energy
PowerPoint Template
SVCE Long-term Clean Targets
SVCE Executive Committee
October 25, 2024
Item 3
PRESENTATION
2 What we will discuss today
Background: September Board Discussion Recap
Potential Targets:
• Annual
• Monthly (new)
• Hourly
• CFE
• PPA Metric (new)
Other Considerations
Staff Recommendations for Board Consideration
Item 3
PRESENTATION
3 Key Planning and Policy Questions
What should SVCE's Clean and RPS target be for 2030, 2035, 2040, 2045? Should we set an Annual, Hourly and/or Other Clean target? How to balance long-term vs. short-term contracts?
Should SVCE have an additionality requirement (i.e., only new build)? How much should SVCE rely on hydro and nuclear (market & allocations)? How much “room” to leave for CPE and emerging technologies? What is the role of virtual power plants and distributed energy resources in meeting targets?
Should we pursue local generation?
Given overall targets, what should customer product offerings look like? Item 3
PRESENTATION
4 September Board Recap and New
Considerations
Board Meeting:
• Presented E3 findings including build, rate impact, and cost of achieving 24/7 carbon-free portfolio
• Discussed uncertainty due to market conditions, load and regulatory risk (esp. allocations from PG&E and CPE)
• Overall support for not adopting 24/7 given the risk, however desire to go beyond 100% clean on an annual basis
Post-meeting Additions:
• Staff assessed adding a monthly clean target and/or including a greenhouse gas (GHG) reducing metric in making portfolio decisions • Clarification on definition of clean to align with the state’s definition including line losses
• Inclusion of uncertainty bands
Item 3
PRESENTATION
5 Capacity Additions to Meet Various Clean
Targets
• 100% hourly matching requires 2,300 MW of new capacity by 2035 vs. 664 MW in 100% annual case • High probability of hourly matching vs. expected hourly matching increases need 15-20% • Wind resources are a significant contributor to hourly matching Existing contracts
and assumed
allocations
(~1400 MW)
New contract
requirements
Pattern filled resources are existing resources already in portfolio CFE:
88%
CFE:
98%
CFE Scores for Hourly Scenarios exceed 99%
Item 3
PRESENTATION
Installed Capacityfor Select Scenarios- 2035
Hydro Allocation >4-hr Battery 8-hr Battery + 10-hr PSH Solar aWind Geothermal 6 Cost and Risk Summary
Modelled annual procurement costs increase $300M under a 100% hourly matching scenario • Costs may be largely offset by revenues but there is significant market risk • More over-procurement = more portfolio risk
Item 3
PRESENTATION
7 Net Procurement Costs for 100% Hourly
Case
Expected Cost: 4.3 cents/kWh ($43/MWh).
Expected Offsetting revenue: 3.6 cents/kWh ($36/MWh)
Net costs 0.7 cents/kWh or $7 MWh
Analysis assumes SVCE is a price-taker and market
prices are based on 2024 Preferred System Plan;
assumes market participants will not exceed SB100
requirements.
Results suggest procurement costs may largely be offset by market revenues based on model assumptions. However, These results are highly uncertain and dependent on market conditions.
Item 3
PRESENTATION
2022
cents/kWh
5.00 4.50
4.00 3.50
3.00 2.50
2.00 1.50
1.00 0.50
0.00 -0.50
Procurement Costs
(assuming noenergy or REC sales)
PotentialEnergy Revenue
2 _ Net Costs w/ Energy Revenue
(assuming 75% revenue)
Net Costs w/ Energy Revenue
-Irl (assuming 100%revenue)
Net Costs w/ Energy REC Revenue
(assuming 100% revenue)
PotentialREC Revenu
Hourly
100%
8 Previously Presented Merits of Clean
Options
Minimum
Compliance
Annual
(90 to 100%)
Hourly – 24x7 CFE
2035 Target 90% annual 90 to 100% 100% 90%+
Clean
GHG reduction
Reliable
Meets RA
Affordable
Rate Impact
Comments • Higher compliance
risk (no built-in
excess)
• Current SVCE
policy
• Short-term
challenges
• Aligns with SB100
• Hard to set
achievable target
• Risk of stranded
assets due to over
procurement
• Incents putting
resources in
“dirtier” hours
without islanding
the LSE
Item 3
PRESENTATION
9 New Option: Monthly
• What: Achieve 100% clean on a monthly basis (vs. annual) • How: Purchase monthly Short-term renewable energy credits (RECs) and/or carbon-free to fill gaps in long-term portfolio. • Why: Closer to 24x7 than annual requirement.
• Why Not: Emissions follows a daily pattern; limited seasonal benefits.
Seasonal patterns for LT resources creates difficult to fill (or sell) open positions. Likely expensive given resource availability.
Not recommended as
part of Clean Targets.
Item 3
PRESENTATION
450
400
350
g 300
250
£ 200
X 150
100
50 0
Monthly Matching
10 New Option: PPA GHG Metric
• What: Evaluate each long-term PPA for emissions impact on SVCE portfolio
• How: Estimate SVCE emissions and system-wide reduction in gas dispatch for each project. Exact details to be determined. • Why: Ensures SVCE’s long-term portfolio and impact on grid dispatch minimize GHG emissions without “islanding” SVCE.
• Why Not: Shifts focus away from solely economic/ risk evaluation.
Forecast emissions may be inaccurate.
CO2 Unit 2030 2035
Total MMt/yr 0.36 0.21
Average emissions intensity tCO2/MWh 0.094 0.053
CO2 Unit 2030 2035
Total MMt/yr 0.32 0.18
Average emissions
intensity tCO2/MWh 0.084 0.044
SVCE Example Results: With and without wind project:
SVCE CEO already has the authority to establish evaluation metrics and has considered GHG in previous evaluations. Recommend that we monitor and report as part of Clean Targets.
Item 3
PRESENTATION
11 How would we measure clean hours
By including GHG-emissions in evaluation efforts, SVCE will increase value of resources which emit in “dirtier” hours, thereby improving its hourly clean outlook. • Starting in 2028 SVCE will begin reporting hourly emissions as part of SB 1158. • Hourly emissions can be calculated based on:
• Carbon Free Energy Score
• Whether SVCE’s clean portfolio met its demand in a given hour • How much of SVCE’s clean portfolio met its demand in a given hour • CFE calculation includes emissions which are out of SVCE’s control (CAISO dispatches gas plants and therefore emissions as needed).
• Staff therefore recommends using Portfolio Specific data to report to the board:
• How many hours SVCE was 100% clean
• Heat map of how much SVCE is covering its hourly demand with its clean portfolio 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 73% 75% 75% 72% 68% 72% 74% 87% 93% 93% 95% 96% 96% 97% 94% 93% 82% 66% 65% 65% 65% 68% 71% 72% 2 75% 77% 77% 77% 73% 72% 76% 89% 93% 93% 95% 95% 97% 97% 96% 97% 93% 70% 67% 66% 66% 69% 72% 74% 3 91% 91% 91% 91% 87% 80% 93% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 83% 74% 75% 81% 87% 90% 90% 4 92% 94% 96% 95% 92% 90% 99% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 92% 82% 83% 89% 91% 91% 92% 5 95% 95% 96% 95% 93% 98% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 96% 87% 87% 92% 95% 95% 95% 6 90% 93% 94% 93% 90% 97% 99% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 97% 87% 86% 90% 90% 90% 90% 7 74% 77% 79% 78% 77% 84% 94% 99% 100% 100% 100% 100% 100% 100% 100% 99% 97% 89% 79% 79% 80% 76% 72% 74% 8 66% 69% 71% 69% 66% 76% 88% 93% 97% 98% 99% 99% 99% 98% 98% 96% 92% 79% 73% 74% 72% 66% 65% 66% 9 63% 66% 66% 65% 62% 66% 83% 92% 98% 100% 100% 99% 100% 99% 98% 95% 85% 73% 72% 72% 69% 66% 66% 66% 10 79% 81% 82% 81% 77% 74% 90% 94% 99% 100% 100% 100% 100% 100% 100% 99% 82% 70% 69% 68% 70% 72% 74% 77% 11 67% 70% 74% 73% 74% 73% 80% 94% 98% 100% 100% 100% 100% 100% 99% 92% 65% 64% 64% 64% 64% 65% 66% 68% 12 64% 65% 66% 65% 66% 67% 69% 82% 82% 89% 92% 93% 93% 93% 91% 81% 66% 63% 62% 61% 62% 62% 63% 64% Hours clean:
3,579 (41%)
Item 3
PRESENTATION
12 Defining 100% Clean
• Eligible Resources – new and existing:
• All Renewable Portfolio Standard (RPS) eligible resources. Note “buckets” for Power Content Categories (“PCC”), may change beyond 2030. In such a case staff will return to board to seek guidance
• Carbon-free Large Hydro
• Carbon-free Nuclear
• Line Losses
• SVCE has historically bought to cover “line losses” – the energy lost over transmission and distribution lines as it is transmitted from the generation facility to the customer.
• Compliance obligations are historical on “retail sales” and therefore ignore line losses (SB100), however increasingly line losses are being considered. • Historically losses has been assumed to be 6% but new regulations have created additional volatility in its value.
Item 3
PRESENTATION
13 Long-term Portfolio Uncertainty
SVCE has uncertainties on both the supply and demand side. • Significant allocation
uncertainty
• May need room for additional
procurement orders (not
shown)
• “Laddering” strategy requires
room for short-term contracts
• Supply constraints expected
to increase until new clean
capacity comes on-line
• Setting a single target is
difficult to achieve.
Item 3
PRESENTATION
SVCE Long-term Position and Potential Allocations
Geothermal ^B Biomass ^B Solar ^B Wind
^B Large Hydro (Non-Allocated) PG&E Nuclear Allocation (High Prob.) PG&E Nuclear Allocation (Unknown) ^B PG&E Hydro Allocation (High Prob.) 388888 PG&E Hydro Allocation (Unknown) IB® CPE (Unknown) Total Load LowLoad —High Load
14 Managing Uncertainty
Staff needs flexibility in managing such uncertainty.
Year Compliance
Req.(a) per SB
100
SVCE Proposed
Target
(b)
Amount Above
Compliance
(a – b)
Proposed
Uncertainty
Band below
Clean Target
SVCE minimum
clean position
2030 60% RPS
N/A Clean
75% RPS
106% Clean
15%
46%
10% 65% RPS
96% Clean
2035 60% RPS
90% Clean
100% RPS
106% Clean
40%
16%
10% 90% RPS
96% Clean
2040 60% RPS
95% Clean
100% RPS
106% Clean
40%
11%
10% 90% RPS
96%Clean
2045 60% RPS
100% Clean
100% RPS
106% Clean
40%
6%
6% 90% RPS
96% Clean
Renewable Portfolio Standard (RPS) & Overall Clean Target (RPS plus Carbon Free) as a percent of Retail Sales
Item 3
PRESENTATION
I
15 Staff Recommendation for Board Approval
Establish the following Clean targets for SVCE (as a % of retail sales):
• 2030-2034: 75% RPS/ 106% Clean measured annually
• 2035-2045: New Target 100% RPS/106% Clean measured annually • Allow for 10% margin of error on targets to help manage risk. If expected short-fall exceeds 10% staff would return to the board for additional guidance.
Additionally:
• Direct staff to include GHG emissions impact as part of PPA evaluation process.
• Direct staff to report on an annual basis the number of clean hours each year. • Define clean to align with state definition of clean under SB100 which as of now includes the following resources: RPS eligible resources*, nuclear and large hydro.
*RPS eligible resources, or at least “buckets” for Power Content Categories (“PCC”), may change. In such a case staff will return to board to seek guidance on what RPS resources it should procure.
Item 3
PRESENTATION
• Subtitle
New SV Clean Energy
Item 4
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
SVCE Participation in CPUC Hourly
Flex Pricing Pilot
SVCE Executive Committee Meeting
October 2024
•
•
•
•
Item 4
PRESENTATION
Purpose of Presentation
Purpose: ask the Executive Committee to recommend that the Board approve SVCE’s participation in the California Public Utilities Commission's (CPUC) Hourly Flex Pricing (HFP) pilot
Key Info:
HFP pilot is CPUC-designed and PG&E-administered 3-year pilot Participation will benefit customers, help SVCE and regulators learn more about hourly rate implementation, and supports Load Management Standard (LMS) compliance
Approval lets staff roll out HFP pilot, take any contracting/implementation actions needed
If SVCE does not participate, then SVCE customers interested in enrolling in the CPUC pilot would need to opt-out of SVCE to participate 2 •
•
•
•
Item 4
PRESENTATION
SVCE & California regulators (CPUC and CEC) increasingly focused on shifting usage out of costly & dirty hours of the day CEC introduced Load Management
Standards to push widespread
demand flexibility
Interest in stronger and more
granular signals than Time of Use
Push usage into cleanest hours
This push supports SVCE and
customer interests in lowering costs,
cleaner grid
CAISO hourly average net load
Hour
3 •
•
•
Item 4
PRESENTATION
0 HFP Pilot Relationship to SVCE LMS Plan
Reminder: in
March 2024,
SVCE Board
adopted SVCE’s
first Load
Management
Standards
Compliance Plan
Load Management Standards (LMS)
regulations require load serving entities
to file a plan to the California Energy
Commission (CEC)
SVCE’s plan explored rates and
programs to meet LMS goals and
described SVCE’s intent to participate in
HFP pilot
Approval of HFP participation helps
SVCE execute on contents of plan and
therefore meet LMS obligations
4 Item 4
PRESENTATION
CD Customers Eligible for HFP Pilots
HFP pilots each focus on shifting usage for certain customer segments. They all share the same CPUC-directed hourly pricing incentive structure.
Applicable Classes Eligible Rates
Agricultural
AG-A1,
AG-A2,
AG-B, and AG-C
Commercial and Residential
E-ELEC, EV2-A
B-6,
B-10,
B-19, and B-20
Residential and Commercial Bi-Directional
EV2-A, E-ELEC, B-6, B-10,
B-19, and B-20
Business EV BEV-1 and BEV-2
5 Item 4
PRESENTATION
Pilot Adds to SVCE’s Growing Portfolio of
Demand Flexibility Efforts
Demand flexibility
helps SVCE better
match its demand
to supply.
Key to unlocking
cleaner and
cheaper future grid.
SVCE’s Lights On
Silicon Valley Program
SVCE’s Electric
Homes Rate (E-ELEC)
SVCE’s GridShift
Program
Request for
Proposals for
Comprehensive
Demand Flex
Solar and battery to
shift out of peak daily
Additional differentiation
on TOU periods
Managed app; now
piloting hourly price signal
Out now -looking for
customer demand flexibility
services
6 Item 4
PRESENTATION
O How is the Pilot Structured?
Customers still get their normal monthly bill, savings earned are trued up annually The pilot is not a new rate that will be charged to customers. It is an hourly incentive mechanism separate from regular bill a customer pays.
Hourly price is applied to change in load from customer’s previous year baseline.
Customer receives an informational-only performance report every month.
How can customers save? Reduce load from baseline during high hourly price hours (peak) and increase load from baseline during low hourly price hours (off-peak) After 12 months, performance reports are trued up & net savings are credited. Bill protection: net total recorded charges & credits will never result in more than regular bill. •
•
•
•
•
•
•
Item 4
PRESENTATION
Pilot Fiscal Impacts
Depends on scale of uptake and response to prices
Impacts to SVCE -
SVCE covers the cost of customer savings
(i.e, annual true-up credits)
No substantial budget impact- cost-neutral
from a power supply perspective because
customer savings are offset by power
supply savings
SVCE also eligible to receive CPUC-funded
incentive based on amount of SVCE load
enrolled
Impacts to SVCE Customers -
Opportunity for performance incentive in
the form of an annual credit, if customer
shifts load
Customer savings expected to be $2MM
but could range between $200k and
$8MM depending on the level of customer
opt-in rates, market prices, and changes in
usage
Bill protection, so no risk
Can access CPUC-funded incentives: e.g,
equipment costs
•
•
•
•
•
•
•
Item 4
PRESENTATION
Significant Learnings and Value Expected from
Participation
Test effectiveness of hourly price signals
How big is the impact?
What is the role/value of automation?
Test effectiveness of hourly incentive baseline approach with no punitive element
See if customer and SVCE energy savings materialize
Ensure customers interested in pilot stay with SVCE
If SVCE does not participate, then customers interested in enrolling in the pilot would need to opt-out of SVCE to participate
•
•
•
•
•
Item 4
PRESENTATION
CD Actions Needed to Move Forward
Approval by Board will delegate to staff the ability to take next steps, continue to work with PG&E on launch and annual performance reconciliation SVCE will need to:
Enter into agreement with PG&E
Submit an Advice Letter to the CPUC
Implementation details are being finalized, but SVCE may also need to:
Adjust method for annual performance reconciliation
PG&E soft launch
between October and
November; full
outreach in January
2025
Enter into implementation agreements with other vendors SVCE has option to:
Stop new customer enrollment at any time and can adjust, if needed
10 Item 4
PRESENTATION
HFP Pilot participation key for LMS compliance and SVCE’s exploration of real-time pricing CD Concluding Thoughts + Request
Request: the EC recommend
the Board of Directors approve
SVCE’s participation in the
CPUC HFP pilot for eligible
agricultural, residential, and
commercial customers as
aligned with PG&E’s offers and
with delegation to staff to effect
implementation.
I
I
I
I
Nov 2024 BOD Approval
Nov 2024 SVCE submits participation letter to CPUC
Aug 2026 CPUC pilot mid-term evaluation
2025-2027 SVCE continues to assess pilot impacts and
demand flexibility options beyond pilot
11 Item 4
PRESENTATION
•
•
•
Item 4
PRESENTATION
Promoting Demand Flexibility Through
Hourly Pricing aka Real Time Pricing
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 rates (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 Also called dynamic rate/price
or hourly rate/price
Item 4
PRESENTATION
Existing Demand Flexibility Programs/Rates
SVCE’s Lights On
Silicon Valley
Program
Helps customers install solar and battery
systems that in addition to providing
resiliency benefits are used to form an
aggregation of batteries that can be
controlled to benefit the grid reducing
demand during system peak periods.
SVCE’s Electric
Homes Rate (E-ELEC)
Increases the cost of energy that’s used
during peak periods by 10% relative to PG&E’s
generation charges, while providing a 30%
discount to all energy that’s used during off-peak periods.
GridShift:
EV Charging
®
E
SVCE’s GridShift
Program
Provides an app that helps customers
optimize their EV charging so that they’re
using electricity at the ideal time given pricing
and grid conditions. The program is being
expanded to pilot hourly signals. 14
Item 4
PRESENTATION
Baseline Calculation
Step 3: Calculate the hourly Baseline
Scaling Factor X hourly delivered kWh from prior year = hourly baseline load Step 1: Calculate the Scaling Factor
Avg delivered kWh in current month billing period 4- Avg delivered kWh in same month of prior year = Scaling Factor Step 2: Calculate 24-hour average delivered load of same month of prior year; weekdays & weekends are averaged separately
Baseline Load & Customer Savings Formula
The Baseline calculation methodology is designed to reduce customer’s monthly bill variability Customer Savings Calculation
(Actual Usage X TOU) - ((Baseline Load X TOU) + (Actual Usage - Baseline load X RTP)) 15 Item 4
PRESENTATION
Illustrative Example of Customer with Electric Vehicle
Home Charqinq
EV2A Example Profile
to Illustrate Analysis:
Hourly kWh Change x Market Price at time
EV2A Example Avg 24Hour Day Hourly
Base EV2A Usage Medium Shift EV2A Usage
Relative TOU Relative Price Shape Relative Hourly Price Shape 16 •
•
Item 4
PRESENTATION
CD Savings Analysis Assumptions
Key assumptions used in tabulating possible range of savings Rate Classes Modeled:
Electric Vehicle Home
Charging Rate
Commercial and Industrial
Customer Rates
Adoption Scenarios
Rate Low Medium High
EV2A 0.5% 4% 8%
B20S 5% 10% 15%
B20P 1% 8% 17%
B20T 1% 8% 17%
Shifting Scenarios
Rate Low Medium High
EV2A 273% 54.5% 81.8%
B20S 0.1% 0.8% 4.2%
B20T 0.2% 1.6% 8.2%
B20P 0.1% 0.9% 4.3%
EV2A Low Medium High Full
Low $4,119 $32,955 $65,909 $823,868
Medium $11,421 $91,366 $182,732 $2,284,153
High $22,373 $178,983 $357,966 $4,474,581
Per
Customer
Change
Rate Class Adoption
B20S Low Medium High Full
Low $5,371 $10,743 $16,114 $107,426
Medium $6,503 $13,006 $19,508 $130,056
High $11,532 $23,063 $34,595 $230,633
Rate Class Adoption
Per
Customer
Change
B20P Low Medium High Full
Low $2,857 $22,857 $48,572 $285,715
Medium $3,466 $27,726 $58,917 $346,571
High $6,170 $49,363 $104,897 $617,042
Rate Class Adoption
Per
Customer
Change
B20T Low Medium High Full
Low $2,129 $17,030 $36,188 $212,869
Medium $3,006 $24,048 $51,103 $300,604
High $6,905 $55,243 $117,391 $690,535
Rate Class Adoption
Per
Customer
Change
Total EV2A & B20 Low Medium High Full
Low $14,476 $83,584 $166,783 $1,429,878
Medium $24,395 $156,146 $312,260 $3,061,384
High $46,980 $306,653 $614,850 $6,012,791
Low Medium High Full
Low $194,757 $1,124,483 $2,243,781 $19,236,616
Medium $328,198 $2,100,678 $4,200,939 $41,185,786
High $632,041 $4,125,498 $8,271,769 $80,892,021
Approximate SVCE 32 Month Total
MWh
10,666,667
Per
Customer
Change
Approximate All of SVCE Adoption
Approx. All of SVCE 32 Month MWh
Rate Class Adoption
Total 32 Month MWh 792,865
Per
Customer
Change
Item 4
PRESENTATION
EV and Industrial Customer Scenarios
Pilot Savings for Customers Over 32 Months* by Scenario Combination *November 2024- June 2027
TJ
CD
NOTES:
1) This is the potential revenue impact with corresponding cost reduction. Effectively $0 margin impact.
2) SVCE would also receive an incentive for enrolling customers of $20 per kW-year of customer enrollment subject to a $3,600,000 cap for all CCAs
18 1
• Subtitle
New SV Clean Energy
PowerPoint Template
GreenPrime Product and
Rate Methodology
Approval
SVCE Executive Committee Meeting
October 25, 2024
Item 5
PRESENTATION
2 Request of Executive Committee
Recommend that the Board of Directors approve
changes to the GreenPrime (GP) program including:
1. Starting in 2025 reprice GP premium over GreenStart
to be based on updated methodology, balancing
portfolio renewable energy credit (REC) value with
marginal REC cost; and
2. Capping participation at 200 gigawatt hours per year and 20 GWh per customer per year
GreenPrime Rate to be finalized and recommended to the Board in November 2024
Item 5
PRESENTATION
3 Goals of Refreshing Product Offering
1. Establish longer-term roadmap with YOY RPS targets for GreenStart, and integrated GreenStart/GreenPrime RPS
sourcing needs
2. Update positioning of GreenPrime offering, and establish more certainty around future GreenPrime RPS needs
3. Plan for uncertainty in RPS deliveries, and future PPA COD dates
4. Establish updated methodology for valuing GreenPrime premium to avoid cross-subsidization and year-to-year price shocks
Acronyms:
YOY: Year-over-year, RPS: Renewable Portfolio Standard, COD: Commercial Operation Date Item 5
PRESENTATION
4 GreenStart & GreenPrime Product Offering:
Background and Progress on Future
GreenPrime History
• 100% RPS
• Solar and Wind
• Green-e Certified through
2023
• Voluntary
• Mix of Large Commercial
and Industrial (C&I),
Member Agencies,
Residential customers
• Rate Premium:
• 2017-2023: $0.008/kWh
• 2024: $0.015/kWh
1. Staff developed a long-term roadmap for
GreenStart (GS) and GreenPrime (GP)
through 2035
2. Offering driven by portfolio and diminishing
difference between GreenStart and
GreenPrime RPS level
3. GreenStart customers will not subsidize
GreenPrime
4. GreenPrime will benefit from portfolio, but
must rely on marginal RECs if needed to
fully source difference between GS and GP;
GreenStart gets greatest portfolio REC
benefit
Item 5
PRESENTATION
5 GreenStart & GreenPrime Product Offering:
Long Term Roadmap Through 2035
Product Roadmap
• Evaluate GreenStart (GS)
and GreenPrime (GP)
needs for the next
decade
• Projects GS achieves
100% annual RPS
starting 2035
• As we get closer to 2035,
GS becomes increasingly
renewable
• The value proposition of
GP changes over time
50.00%
54.00%
58.00%
62.00%
66.00%
70.00%
76.00%
82.00%
88.00%
94.00%
100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%
54.97%
58.91%
62.84%
66.75%
70.65%
74.54%
80.43%
86.31%
92.22%
98.13%
100.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
RPS Target % by Product
RPS Target - GS RPS Target - GP SVCE Overall RPS
Item 5
PRESENTATION
6 GreenPrime Product Offering:
Program Capped at 200 GWh per Year;
Equivalent to approx. 5% of Total Load in 2025
Enrollment
Requirements
• 200 GWh total load
• 20 GWh load per
customer
• Larger customers
interested in staying
100% RPS
encouraged to
explore a C&I deal
200
200
200
200
200
200
200
200
200
200
200
3,000
3,200
3,400
3,600
3,800
4,000
4,200
4,400
4,600
4,800
5,000
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
GWh
SVCE Load Forecast through 2035
Retail Sales - GS + GPD Retail Sales - GP
Item 5
PRESENTATION
7 GreenPrime Product Offering:
GreenPrime may require marginal RPS
GreenPrime Supply
Requirements
• Portfolio RPS allocated to
GP not expected to
exceed GS RPS level
• Supply discounted by 15%
to account for uncertainty
• GP receives their load
share of Portfolio RPS
Example portfolio RPS to GP:
2000 GWh x 85% = 1700
1700 x 5% = 85 GWh that go
toward GreenPrime
200 - 85 = 115 GWh sourced
from marginal/market supply
Hypothetical SVCE RPS Portfolio
(GWh)
GreenPrime Supply Sources (GWh)
Item 5
PRESENTATION
8 GreenPrime Product Offering:
Rate Premium Based on Portfolio + Marginal RPS
Premium Methodology
• Weighted Average RPS Price
accounts for cost of RPS
from portfolio and from
marginal (market) supply
• Applied to the difference
between 100% RPS and the
GreenStart RPS level
• Gives GreenPrime portfolio
benefit, but does not cross-subsidize
• Formula applied on rolling 4-
year average to account for
prior year actual cost and
forward year estimates
𝑮𝒓𝒆𝒆𝒏𝑷𝒓𝒊𝒎𝒆 𝑷𝒓𝒆𝒎𝒊𝒖𝒎
= 𝟏𝟎𝟎% − 𝑮𝒓𝒆𝒆𝒏𝑺𝒕𝒂𝒓𝒕 𝑹𝑷𝑺 % 𝒙(𝑾𝒆𝒊𝒈𝒉𝒕𝒆𝒅 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑹𝑷𝑺 𝑷𝒓𝒊𝒄𝒆) 𝑮𝒓𝒆𝒆𝒏𝑷𝒓𝒊𝒎𝒆 𝑷𝒓𝒆𝒎𝒊𝒖𝒎
= 𝟏𝟎𝟎% − 𝑮𝒓𝒆𝒆𝒏𝑺𝒕𝒂𝒓𝒕 𝑹𝑷𝑺 % 𝒙 (𝑾𝒆𝒊𝒈𝒉𝒕𝒆𝒅 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑹𝑷𝑺 𝑷𝒓𝒊𝒄𝒆) = 𝟏𝟎𝟎% − 𝟓𝟎% 𝒙 $𝟔𝟎 − 𝟑𝟎
= 𝟓𝟎% 𝒙 $𝟔𝟎 − 𝟑𝟎
= 𝟓𝟎% 𝒙 $𝟑𝟎
= $𝟏𝟓 𝒑𝒆𝒓 𝑴𝑾𝒉 𝒐𝒓 $𝟎. 𝟎𝟏𝟓 𝒑𝒆𝒓 𝒌𝑾𝒉
-Illustrative Example-Item 5
PRESENTATION
9 Request of Executive Committee
Recommend that the Board of Directors approve
changes to the GreenPrime (GP) program including:
1. Starting in 2025 reprice GP premium over GreenStart
to be based on updated methodology, balancing
portfolio renewable energy credit (REC) value with
marginal REC cost; and
2. Capping participation at 200 gigawatt hours per year and 20 GWh per customer per year
GreenPrime Rate to be finalized and recommended to the Board in November 2024
Item 5
PRESENTATION
10 Thank you
Item 5
PRESENTATION
1 New SV Clean Energy
PowerPoint Template
• Subtitle
Delegation of Authority to
Purchase Carbon-free
Nuclear Energy for 2025-
2027
Executive Committee
10/25/2024
Item 6
PRESENTATION
2 Request of Executive Committee
Recommend to the SVCE Board of Directors a Delegation of Authority allowing the Chief Executive Officer CEO to execute agreement(s) to purchase Carbon-Free Nuclear Energy with the following conditions:
1. Delivery in calendar years 2025-2027;
2. Paid volume not to exceed 750,000 MWhs per year;
3. Executed with any counterparty via a WSPP agreement;
4. Expected dollar amount per year 10.8M
Item 6
PRESENTATION
3 SVCE and Nuclear Power
COSO
This request will allow SVCE more flexibility in purchasing nuclear carbon free attributes • In 2020 SVCE started to accept the Nuclear allocations from PG&E for the Diablo Canyon Power Plant.
This authority to accept allocations did not extend to procurement. • Due to shrinking availability of Large Hydro Carbon Free attributes. Staff has requested transaction authority to procure these attributes, if available on a year-to-year basis (2024). • At June the board meeting SVCE staff requested the ability to procure these attributes for 2025 with certain budget constraints for fiscal year 2024-25.
• Through the Clean Pathways analysis and recommendation, SVCE will further define Carbon Free to align with SB100 defined resources which includes large hydro and nuclear.
Item 6
PRESENTATION
4 Change in Clean Position
2025 2026 2027
Clean Target 85% 100% 100%
Current Clean Position 83.1% 85.3% 92.4%
Expected Clean Position with
Nuclear Purchase (750K) 101.7% 103.7% 110.6%
If transaction(s) is executed:
1. CEO will report to the Board volume, term and counterparty
2. Operating Budget increase associated with the transaction(s) will be included as part of Fiscal Year's 2024-25 budget update in December 2024
Item 6
PRESENTATION
5 Request of Executive Committee
Recommend to the SVCE Board of Directors a Delegation of Authority allowing the Chief Executive Officer CEO to execute agreement(s) to purchase Carbon-Free Nuclear Energy with the following conditions:
1. Delivery in calendar years 2025-2027;
2. Paid volume not to exceed 750,000 MWhs per year;
3. Executed with any counterparty via a WSPP agreement;
4. Expected dollar amount per year 10.8M
Item 6
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Programs Snapshot:
Fleet Electrification
Planning Assistance
October 25, 2024
Executive Committee Meeting
Tony Eulo, Senior Manager of Public Sector Services
Item 7
PRESENTATION
2 Fleet Planning: The What & Why
• What:
• Providing customized technical
assistance to fleet owners to guide
planning for vehicle electrification and
charging infrastructure
• Outcome: Fleet electrification plan for
2025-2040
• Why:
• Fleet emissions are significant
• EV Fleets demonstrate EV viability
• Advanced Clean Fleets Regulations
Item 7
PRESENTATION
3 Fleet Planning: The Who
10 Fleets Engaged (all public)
• 7 Member Agencies
• Campbell
• Cupertino
• Gilroy
• 2 School Districts
• Morgan Hill Unified
• Mountain View Whisman
• 1 Water District
• Purissima Hills
• Morgan Hill
• Saratoga
• Los Altos
• Los Gatos
Item 7
PRESENTATION
4 Fleet Planning: The How
• Program funded at $300K (allocated via EVI Plan
in 2019)
• Consulting services provided by Optony
• Key objectives:
• Meet fleet owners where they are
• Few employees have fleet electrification assigned as a major task….it is often an “extra” task that they must fit in • Data….Reports….Opportunity for Agency Actions
Item 7
PRESENTATION
5 Fleet Planning: The How
Kick-Off, Data Collection, and Fleet Baseline
EV Suitability, Total Cost of Ownership Analysis, & Emissions Reductions Charging Infrastructure Needs Assessment
Project Planning & Site Design for Priority Domicile
Item 7
PRESENTATION
6 Fleet Planning: The How
Minimum
Compliance
Package
Electrification of
• medium- and heavy-duty
vehicles only
Prioritizes ACF compliance
Economic
Optimization
Package
Electrification of
• medium- and heavy-duty
• cost-effective* light-duty
Comprehensive
Electrification
Package
Electrification of
• all vehicles
*Cost effective light duty vehicles are defined by a lower total cost of ownership for an EV compared to the equivalent ICEV Item 7
PRESENTATION
FLEET ELECTRIFICATION TIMELINE
7 0
2 4
6 8
10 12
14 16
18 20
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Count of Vehicles to be Electrified
Minimum Compliance Package Economic Optimization Package Comprehensive Electrification Package
EXAMPLE
Item 7
PRESENTATION
8 $(200,000)
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Marginal Total Cost of Ownership ($)
Minimum Compliance Package Economic Optimization Package Comprehensive Electrification Package
ANNUAL TOTAL COST OF OWNERSHIP
EXAMPLE
Item 7
PRESENTATION
GHG EMISSIONS REDUCTION
9 • The Comprehensive Electrification Package will reduce the fleet’s annual emissions by around 530 MTCO2e, or 100% of the fleet’s emissions.
• This is the equivalent of the MTCO2e sequestered by 8,764 tree seedlings grown for 10 years. 0 100
200
300
400
500
600
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 MT CO2e
Baseline
Economic Optimization Package
Minimum Compliance Package
Comprehensive Electrification Package
EXAMPLE
Item 7
PRESENTATION
10 July 2024 July 2024 – present Jan 2026
10 public fleets
enrolled into program
All 10 fleet plans
completed
Program ends
Development of
fleet electrification
plans continues, all
are at different
stages
Jan 2023
Consultant contract
executed
Recruitment of
agencies begins
Next Steps
We are here
Item 7
PRESENTATION