New SV Clean Energy
PowerPoint Template
Subtitle
Item 3
PRESENTATION
December 11, 2024
Item 3
PRESENTATION
Purpose
Authorize the implementation of SVCE
generation rate changes and adopt the
updated fiscal year 2024-2025 operating
budget.
Main Areas of Discussion
1. Recap of assumptions used in setting
the adopted budget and an update on
the budget forecast using the recent
rate forecasts
2. Comparison of adopted and updated
Budget
3. Updated reserve projection
4. Proposal on funding long-term
strategic priorities
5. Additional uncertainty in budget
projections
Item 3
PRESENTATION
FY24-25 Budget Development Timeline
May May/June August August
BOD adopts the budget and
agrees to revisit additional
expenditures later in the
year when there would be
more certainty on PG&E
rates
Executive Committee and
Finance and Admin Committee
review the updated budget
based on the revised PG&E rate
filing and provide feedback on
any additional expenditures
BOD reviews and adopts
amendments to the budget
incorporating any additional
expenditures
Mid-Year Budget
Review / Adjustment
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Item 3
PRESENTATION
Key Messages
Recap of Adopted Budget Assumptions
Conservative assumptions used in estimating revenues
CPUC’s fall updating of RA and RPS prices used for setting the Market Price Benchmark (MPB) was highly uncertain Budget conservatively showed contribution to reserves of $14 million using prior year’s RA and RPS MPBs Staff estimated an additional increase in revenues of $145 million if higher RPS and RA MPB prices were adopted Budget provided a 4% customer discount and an additional 1% offered as bill credits to low-income customers Highlights of the Updated Budget
SVCE’s forecasted revenues are higher by about $85 million using CPUC’s updated MPB prices Revenues are $60 million lower than staff anticipated primarily because of the recent decline in energy prices Updating for revenues and power supply expenses, the net contribution to reserves increases from $14.0 million to $96.7 million Trues up the budget to fund transfers to programs at 2% of updated revenues and to fund the “1%” low-income customer bill credits Reserves slightly exceed the target days of cash on hand of 350 but remain below the maximum target of 500 (excluding earmarked funds) 4 •
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SILICON VALLEY CLEAN ENERGY
FY 2024-25 OPERATING BUDGET
($ in thousands)
FY 2024-25 FY 2024-25
ADOPTED UPDATED
DESCRIPTION BUDGET BUDGET $ %
Energy Revenues 441,050 526,513 85,463 19.4%
Power Supply Expense 387,145 390,091 2,946 0.8%
Operating Margin 53,905 136,422 82,516 153.1%
Operating Expenses 36,433 36,433 0 0.0%
Non-Operating Revenue (Expense) 16,275 19,168 2,893 17.8% Annual Transfers and Other Expenses
Capital Outlay 1,002 1,002 0 0.0%
Program Fund 8,821 10,530 1,709 19.4%
Nuclear Allocation 3,708 3,708 0 0.0%
Customer Bill Relief 4,411 5,370 959 21.7%
Hanford Emissions Mitigation Fund 1,800 1,800 0 0.0%
BALANCE AVAILABLE FOR RESERVES 14,005 96,746 82,741 590.8% Change
Item 3
PRESENTATION
FY 24-25 Adopted and Updated Budget
Higher RA and RPS MPBs
increase revenues
Power Supply Costs increase
slightly
Portfolio updates, including those
for additional clean resources and
Power Purchase Agreement
changes and resulting higher RPS
and RA costs, more than offset
declines in energy prices.
Program fund is trued up for
updated revenues
Customer bill relief, low-income
bill credit, also trued up
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450
397
366 364
300
382
345 333 339
300
0 100
200
300
400
500
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
DCOH
Days Cash on Hand (DCOH)
DCOH (Inc. Unspent Earmarked Funds)* DCOH (Excl. Unspent Earmarked Funds)* Max Reserves Target Reserves
Min Reserves
Item 3
PRESENTATION
Reserve Projection
Projected End of FY Reserves:
382 Days of Cash on Hand
(DCOH)
Excludes Unspent Program
Funds and Building Fund
450 Days of Cash on Hand
(DCOH)
If unspent Program Funds and
Building Fund were included
in the reserve calculation
* Earmarked funds are unspent SVCE Program Funds and Building Fund. 6 •
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Item 3
PRESENTATION
Funds Above Projected SVCE Reserve Target
For fiscal year 2024-25, the forecast ending DCOH is 382, which is 32 DCOH above the target DCOH of 350 and equates to $40 million.
Financial projection enables SVCE to consider funding longer-term key SVCE mission-aligned strategic priorities
These strategic priorities are addressed in the next agenda item •
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Item 3
PRESENTATION
Funding Criteria for Strategic Priorities
Generally, direct funds above target DCOH
During the December budget update or the mid-year budget update, staff will propose the funding level after reviewing the available information on prior fiscal year financial results and accounting for the level of uncertainty in the budget forecast For the fiscal year 2024-25, Staff does not recommend any funding yet There’s greater uncertainty on rates the CPUC will approve in December Staff may recommend funding during the mid-year budget update 8 •
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Item 3
PRESENTATION
Additional Uncertainty In this Fiscal Year’s Budget
PG&E continues to propose capping RA MPBs at last year’s levels The CPUC’s proposed decision issued on November 25, 2024, states that PG&E’s arguments are out of scope but could be considered in another proceeding (possibly reopening of the PCIA proceeding)
Still some uncertainty on how the CPUC will rule
Final rates are expected to be published at the end of December, after PG&E further updates ERRA account balances, incorporates CPUC decision likely on Dec. 15, and files its Annual Electric True-up advice letter.
9 Item 3
PRESENTATION
CD Board Approval
Adopt Resolution 2024-16
1) Authorizing the CEO to implement SVCE generation rate changes to establish a 4 % discount to PG&E’s applicable generation rates when PG&E’s updated rates are implemented, expected to be January 1, 2025, or after allocation of the sufficient time window for implementing new generation rates in SVCE’s billing system, expected to be within three weeks of PG&E’s release of the new 2025 rates
2) Updating the fiscal year 2024-2025 operating budget that projects depositing $96.75 million into the reserves, considering updated revenues, power supply expenses, and investment¬ earning forecasts; and the following additional allocations:
a) $0.96 million towards bill credits for CARE/FERA customers b) $1.7 million to the Programs Fund
10 Item 3
PRESENTATION
Thank you! / Questions?
11 2024 2025 2024 2025* 2024 2025 2024 2025 2024 2025
Rate Schedule (as of Oct, 2024) E-TOUC Est. Avg E-TOUCL Est. Avg B-1 Est. Avg B-10S Est. Avg B-19S Est. Avg PG&E Bundled Gen Rate ($/kWh) $ 0.1501 $ 0.1553 $ 0.1503 $ 0.1553 $ 0.1499 $ 0.1469 $ 0.1581 $ 0.1541 $ 0.1442 $ 0.1459 SVCE Gen Rate ($/kWh) $ 0.1320 $ 0.1407 $ 0.1323 $ 0.1407 $ 0.1324 $ 0.1330 $ 0.1395 $ 0.1396 $ 0.1270 $ 0.1322 PG&E Delivery Rate ($/kWh)** $ 0.2807 $ 0.2807 $ 0.1242 $ 0.1242 $ 0.2830 $ 0.2830 $ 0.2108 $ 0.2108 $ 0.1613 $ 0.1613 PG&E PCIA/FF ($/kWh) $ 0.0121 $ 0.0084 $ 0.0121 $ 0.0084 $ 0.0116 $ 0.0080 $ 0.0122 $ 0.0084 $ 0.0115 $ 0.0079 Total Electricity Cost ($/kWh)** $ 0.4248 $ 0.4298 $ 0.2685 $ 0.2733 $ 0.4270 $ 0.4240 $ 0.3625 $ 0.3588 $ 0.2998 $ 0.3014 SVCE CARE/FERA Monthly Credit* $ (12.50) $ (16.94)
Est. Average Usage (kWh/month) 491 491 491 491 1,851 1,851 22,540 22,540 148,625 148,625 SVCE Gen Rate Discount vs PG&E 4% 4% ~21%* ~26%* 4% 4% 4% 4% 4% 4% Est. Av. Monthly Savings vs PG&E $ 3.09 3.05 $ 15.59 19.99 $ 11.16 10.87 $ 143.54 138.97 $ 902.81 867.53 *Estimated, based on PG&E October 2024 ERRA update and average historic residential usage and number of CARE/FARE customers as of September 27, 2024. ** The 2025 PG&E delivery charges are at current levels (as of October 2024) because 2025 rates are not yet available.
Residential Res CARE* Small Commercial Medium Commercial Large Commercial Item 3
PRESENTATION
Estimated Customer Billing Rate Breakdown and
Comparison Y-o-Y
Total CARE bill discount (including T&D) vs average residential customer, assuming the same usage (491 kWh/month) is about 44%.
On average, CARE usage is about 12% lower than that of an average E-TOUC customer. 12 SVCE PG&E SVCE PG&E SVCE PG&E SVCE PG&E SVCE PG&E
Rate Schedule (eff. July 1, 2024) E-TOUC E-TOUC B-1 B-1 B-10 B-10 B-19S B-19S Average Usage (kWh/month) 491 491 491 491 1,851 1,851 22,540 22,540 148,625 148,625 Annual Peak Demand (kW) 499 499
PG&E Electric Delivery $ 124.84 $ 124.84 $ 55.22 $ 55.22 $ 482.30 $ 482.30 $ 4,755.94 $ 4,755.94 $25,884.53 $25,884.53 Electric Generation $ 68.34 $ 77.36 $ 68.34 $ 77.36 $ 246.10 $ 278.69 $ 3,169.39 $ 3,588.37 $19,964.14 $22,570.19 CARE/FERA monthly bill credit $ (12.50)
PG&E Added Fees (PCIA, Franchise)$ 5.93 $ 5.93 $ 21.43 $ 275.44 $ 1,703.24 Average Total Cost $ 199.11 $ 202.20 $ 116.99 $ 132.58 $ 749.83 $ 760.99 $ 8,200.77 $ 8,344.31 $47,551.91 $48,454.72 Average Monthly Savings $ 3.09 $ 15.59 $ 11.16 $ 143.54 $ 902.81 *Estimated based on average residential customer usage, PG&E delivery charges and number of CARE/FERA customers as of September 27, 2024.
Residential Res CARE* Small Commercial Medium Commercial Large Commercial Item 3
PRESENTATION
(^) Typical Customer Bill Savings
(Current Rates)
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Item 3
PRESENTATION
Market Price Benchmarks (MPB)
reflect higher RPS and RA prices
RPS prices for 2024/2025 have
increased 72%/125%.
RA prices for 2024/2025 have
increased 55%/179%.
Energy prices for 2024/2025 have
decreased -13%/-16%.
Updated budget rate forecast,
incorporating latest MPB prices,
shows PG&E gen rates in January
decreasing on average by 8% from
2024 blended rates.
Relative to adopted budget
assumptions, SVCE’s margins, on
average, improved by ~31%. Resulting
in a ~$85 million increase in
revenues.
Rates are not final until late
December
PG&E continues to challenge CPUC
MPB methodology, proposing to
utilize last year’s MPBs.
The adoption of one of PG&Es
proposals could reduce SVCEs
projected FY2025 revenue by $20 to
$134 Million.
Current Blended
2024 Rate
Adopted Budget Estimated Budget Updated Budget
Blended Jan-Dec
2024 Rate* 2025 Rate** 2025 Rate*** 2025 Rate
PG&E Gen Rate:
16.00 <r/kWh
4% SVCE discount
PG&E Gen Rate:
16.69 <t/kWh
* Source: Blended PG&E Jan-Jun 2024 & Jul-Dec 2024 Average Rate (Weighted for SVCE Portfolio Load) " CaICCA NewGen Model analysis using market data as of 6/28/2024 and CPUC attribute benchmarks adopted for CY 2024 (Weighted for SVCEWortfolio Load) 14 "* CaICCA NewGen Model analysis using market data as of 6/28/2024 and market RA and RPS prices (Weighted for SVCE Portfolio Load) Above margin analyses ignore minor reductions for franchise fees (0.09 <t/kWh) Item 3
PRESENTATION
If forecasted rates prevail, SVCE customer rates on
average will be close to current levels.
Forecast of 2025 Rate
PG&E Gen Rate: PG&E Gen Rate:
Current Jul-Dec
2024 Rate
Above margin analyses ignore minor franchise fees (0.09 d/kWh) 15 MPB Impact on Rate Projections •
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2023 2024 2025
Forecast RPS
Transacted in
09/2021 - 08/2022
for CY 2023
Transacted in
09/2022 - 08/2023
for CY 2024
Transacted in
09/2023 - 08/2024
for CY 2025
Final RPS
Transacted in
12/2021 - 08/2023
for CY 2023
Transacted in
12/2022 - 08/2024
for CY 2024
Transacted in
12/2023 - 08/2025
for CY 2025
Forecast RA - system & flex
Transacted in
09/2021 - 08/2022
for CY 2023
Transacted in
09/2022 - 08/2023
for CY 2024
Transacted in
09/2023 - 08/2024
for CY 2025
Forecast RA - local
Transacted in
09/2019 - 08/2022
for CY 2023
Transacted in
12/2020 - 08/2023
for CY 2024
Transacted in
09/2021 - 08/2024
for CY 2025
Final RA - system & flex
Transacted in
12/2021 - 08/2023
for CY 2023
Transacted in
12/2022 - 08/2024
for CY 2024
Transacted in
12/2023 - 08/2025
for CY 2025
Final RA- local
Transacted in
12/2019 - 08/2023
for CY 2023
Transacted in
12/2020 - 08/2024
for CY 2024
Transacted in
12/2021 - 08/2025
for CY 2025
Set by CPUC in October 2023
Will be set by CPUC in October 2024
Item 3
PRESENTATION
2025 Rate
Estimated FY2025 Revenue 2025 Rate
Estimated FY2025 Revenue
$525M
Estimated FY2025 Revenue
$441M 4% SVCE discount PCIA 0,06 $/kWh
4% SVCE discount
4% SVCE discount
PCIA 0.7 <t/kWh
PCIA 2.92 <t/kWh
CM 0
CO
cn cn
o
CD
Ct
o
CD
Ct
o
CD
Ct
o
0 LU
o
0 LU
CD
0 LU
CPUC uses a historical volume-weighted average of all IOU, CCA, and ESP market transactions
executed in a specific time frame to
set next year’s MPBs.
Updated 2025 system RA MPB is r
165% / 54% above 2024 forecast /
actual MPBs
Energy
RA
RPS
>G&E Gen Rate:
13.76 C/kWh
>G&E Gen Rate:
14.76 C/kWh
Energy
System RA
Local/Flex RA
RPS
2025 Rate*
MPBs for RA and RPS are significantly
above last year’s levels, while energy
prices have declined.
Updated 2025 forecast RPS MPB is
~125% / 31% higher than 2024
forecast/actual MPBs Adopted Budget
2025 $586M
*G&E Gen Rate:
16.69 e/kWh
* Source: CaICCA NewGen Model analysis using market data as of 6/28/2024 and CPUC MPBs (Market Price Benchmark) adopted for CY 2024 (Weighted for SVCE Portfolio Load) " Blended PG&E Jan-Jun 2024 & Jul-Dec 2024 Average Rate (Weighted for SVCE Portfolio Load) "* CaICCA NewGen Model analysis using market data as of 6/28/2024 and estimated CPUC MPBs for CY 2025 (Weighted for SVCE Portfolio Load) Above margin analyses ignores minor reductions for franchise fees (0.09 <t/kWh) 2025 Forecast On Peak Energy MPB 64.77 64.77 55.02 -15.1% -15.1% 2025 Forecast Off Peak Energy MPB 63.78 63.78 53.18 -16.6% -16.6% 2024 Actual On Peak Energy MPB 50.75 50.75 44.08 -13.1% -13.1% 2024 Actual Off Peak Energy MPB 47.95 47.95 42.22 -11.9% -11.9% 2025 Forecast RPS MPB 31.73 62.00 71.24 124.5% 14.9% 2.4% 2024 Actual RPS MPB 31.73 50.00 54.56 72.0% 9.1% 0.8%
2025 Forecast System RA MPB 15.23 33.50 42.54 179.3% 27.0% -0.6% 2025 Forecast Local RA MPB 9.52 20.94 13.29 39.6% -36.5% -7.3% 2025 Forecast Flex RA MPB 9.12 20.06 14.16 55.3% -29.4% -3.0% 2024 Actual System RA MPB 15.23 21.40 28.65 88.1% 33.9% 4.0% 2024 Actual Local RA MPB 9.52 13.38 12.22 28.4% -8.6% -1.1% 2024 Actual Flex RA MPB 9.12 12.81 12.89 41.3% 0.6% 0.0% Impact on the headroom
(gen rate - PCIA) - Est.
Budget vs Upd. Budget
-6.5%
-4.2%
Estimated
Budget
6/28
% Change
from
Budget
% Change
from Est.
Budget
Adopted
Budget 6/28
Updated
Budget
10/25
Item 3
PRESENTATION
O Updated Market Price Benchmark
New SV Clean Energy
PowerPoint Template
• Subtitle
Item 4
PRESENTATION
Item 4
PRESENTATION
Discussion Item
Proposal to establish the Silicon Valley Clean Energy Community Fund
SILICON VALLEY
CLEAN ENERGY 2
Item 4
PRESENTATION
Discussion Structure
1. Why we need this fund
2. Funding priorities and targets
3. Funding allocations and FY24/25 budget estimates
4. Implementation process and accounting overview
SILICON VALLEY <3/ CLEAN ENERGY
Item 4
PRESENTATION
Why We Need This Fund
Strategic direction from the Board will enable staff to plan for and grow the impact of SVCE’s strategic
community investments.
Item 4
PRESENTATION
SVCE Mission
Reduce dependence on fossil fuels by providing
carbon free, affordable, and reliable electricity and
innovative programs for the SVCE community.
SILICON VALLEY
CLEAN ENERGY
Item 4
PRESENTATION
SVCE is at an inflection point that requires strategic
direction.
1. As reserves reach target levels, SVCE can fund longer-term mission-aligned strategic priorities.
2. Increasing electric bills underscore the need for SVCE to have consistent discounts.
3. New air district policies will exponentially increase the demand for heat pumps and the need for support to ensure affordability for all.
4. Evolving market conditions make it more difficult to hit clean targets and amplify the need for new technologies and local developments to supply affordable and reliable clean energy.
SILICON VALLEY
CLEAN ENERGY 6
Item 4
Board
PRESENTATION
direction will enable staff to plan for large investments & grow impact.
1. Instead of making decisions every year, we need multi-year strategic direction.
2. Staff has proposed three priority areas for funding.
3. Board retains authority to shift direction if circumstances change.
SILICON VALLEY
CLEAN ENERGY
Item 4
PRESENTATION
Determining the Availability of Funds & Allocations
1. Funds above Reserve Policy Targets will be identified as part of budget process.
2. For FY 24-25, based on the updated December 2024 budget estimate ~$40M is available to establish the Fund.
3. At mid-year Budget, March 2025, staff will confirm estimates and make a recommendation to fund the Fund.
Allocations are based on Board set priorities. The following examples assume $40M available in total.
SILICON VALLEY
CLEAN ENERGY 8
Item 4
PRESENTATION
Funding Priorities and Targets
By investing in three priority areas, SVCE will be doing its best to ensure the energy transition is affordable
and accessible for all in the short, medium and long
term.
Item 4
PRESENTATION
This three-pronged approach can help clean energy be
affordable for all-today and in the future.
1. Discount Stabilization & Bill Affordability-The discount should be secure and the most vulnerable should be protected.
2. Scalable Support for Pollution-Free Appliances -Everyone must be able to upgrade to a heat pump.
3. Local and Emerging Power Supply Technology -We need new solutions for a long-term clean supply.
SILICON VALLEY
CLEAN ENERGY 10
Item 4
PRESENTATION
11 Discount Stabilization
Recommendation Customer Benefit Cost to SVCE
Build a fund to ensure a
rate discount even in
bad years and to
provide extra
affordability protections
Each 1% discount:
"60 cents/month/residential
customer
~$3/month for average non-res
customer
Larger monthly savings for large C&l
who have more usage
Provides funding to invest in
additional affordability measures, such
as emergency bill support
Up to $75M
Stabilizes discount three years
Each 1% discount costs
~$5M/year
Item 4
PRESENTATION
Scalable Support for Pollution-Free Appliances
1 Recommendation Customer Benefit Cost to SVCE
Up to $90M
Estimate needed for three years.
Build a fund to
provide scalable rebates
and financing for
HPWHs installed after
regulation.
Rebates and/or financing to lower upfront cost.
Aim design of programs to provide support for up
to 100% of HPWH installations.
Consistent funding, not come-and-go state
programs.
Actual programs deployed will
depend on funding available and
learnings from ongoing programs.
Program timing would align with
regulations going into effect.
- Staff ran several scenarios to
estimate funding needed for three
years of support-example in
appendix.
Note: SVCE will also continue to consider external funding sources such as energy efficiency program dollars, to better ensure sufficient support coverage. •
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Item 4
PRESENTATION
Local & Emerging Power Supply Technology
Recommendation Customer Benefit Cost to SVCE
Investments in emerging technology can
bring down costs long term and help to
Build a fund to stabilize emissions. Upto $100M
invest in the above
market costs of local
and emerging
This fund would be set aside for the
benefit of all SVCE customers:
Staff will develop investment
recommendations based on
power supply
technologies. Local projects
Demand flexibility
Emerging technologies
level of funding.
13 Item 4
PRESENTATION
Discussion: Summary of Proposed Priorities & Targets
Priority Investment Cap Key Risks
$75M
Discount Stabilization and Bill Estimate needed to secure three years of a 5% discount or other bill
relief
- Customers don’t notice or feel
Affordability value
Scalable Support for Pollution-Free Appliances
$90M
Estimate needed to provide
support the first three years of
BAAQMD. Example in appendix.
- Low demand (BAAQMD
changes)
- Programs scaling challenges
Local and Emerging Technology
$100M
Estimate needed to catalyze a
combination of demand flex, local
- Technology doesn’t work
- Costs are much higher
- Technology not available
Item 4
PRESENTATION
Funding Allocations and FY24/25 Budget
Estimates
15 Item 4
PRESENTATION
Option A: Strict Waterfall- Discount Funded First
This option would fund each target fully, in order of priority, starting with the discount. Thus, the preceding priorities wouldn’t be funded until the preceding priority was 100%.
Priority Allocation FY 24/25-Estimated $40M
Discount Stabilization and Bill
Affordability 100% ~$40M or 53% of target
Scalable Support of Pollution-Free
Appliances 0% until discount funded $0
_ _ , . 0% until discount and appliances Power Supply Emerging Technology funded $0 Item 4
PRESENTATION
Option B: Strict Waterfall- Appliances Funded First
This option would fund each target fully, in order of priority, starting with appliances. Thus, the preceding priorities wouldn’t be funded until the preceding priority was 100%.
Priority Allocation FY 24/25-Estimated $40M
Scalable Support of Pollution-Free
Appliances
Discount Stabilization and Bill
Affordability
Power Supply Emerging Technology
100%
0% until appliances are funded
0% until appliances and rate are
funded
~$40M or 44% of target
$0
$0
Item 4
PRESENTATION
RECOMMENDED Option C: Percent Allocation
In this option, each priority would receive a portion of funding starting in FY 24/25. Once the discount and appliances allocations are at their targets, all remaining funds would go towards emerging tech.
Priority Allocation FY 24/25-Estimated $40M
Discount Stabilization and Bill
Affordability 40% ~$16M or 21% of target
Scalable Support of Pollution-Free
Appliances 40% ~$16M or 18% target
Power Supply Emerging Technology 20% ~$8M or 8% of target Item 4
PRESENTATION
Discussion: Staff Recommends Option C
Priority Option Allocation Options
FY 24/25
FY 24/25 -
Estimated $40M
Discount Stabilization and
A 100% $40M - 53% target
0% - 0% target Bill Affordability B $0
C 40% $16M - 21% target
A 0% $0 - 0% target
Universal Support of
Pollution-Free Appliances
B 100% $40M - 44% target
C 40% $16M - 18% target
A 0% $0 - 0% target
Power Supply Emerging
Technology B 0% $0 - 0% target
C 20% $8M - 8% target
19 Item 4
PRESENTATION
Implementation Process and Accounting Overview
Item 4
PRESENTATION
Proposed Process and Guidelines
1. Board adopts a resolution to establish the Silicon Valley Clean Energy Community Fund (the Fund), with threshold to determine funding level available, set funding priorities, targets, and allocations.
2. As part of the budgeting process, if funds are available, the Board approves the annual transfers to each initiative based on the predetermined allocations.
3. Staff will bring spending proposals for the Fund priorities to the Board for review and approval as necessary.
4. Each of the Fund’s priorities is capped based on recommended maximums. Total Fund set at $265M. NOTE: This fund is distinct from the programs fund.
5. The Board may adopt changes to the allocation percentages and/or targets at any time.
SILICON VALLEY VS/ CLEAN ENERGY 21
Item 4
PRESENTATION
Appendix M svcleanenergy.org
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SILICON VALLEY
CLEAN ENERGY 22
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Item 4
PRESENTATION
Heat pump water heater demand will exceed
current budget
SVCE has budget for
2,145 new water heaters
through FY 26-27.
In 2027, heat pump
water heater demand is
expected to increase
about 10,000 per year
due to local policies.
O 30000
co
co
“
25000
CD
co
20000
<D
toj 15000
Q.
E
10000
T
5000
FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
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Item 4
PRESENTATION
Current programs budget spend is ramping up; will
mostly be deployed by Fiscal Year 2026-2027
Demonstrating approaches,
learning, gathering data, and
informing how to scale.
Actual spend depends on
program uptake, so forecast
has large uncertainty.
Budget used for all decarb
programs (buildings and
transportation), resilience,
C&l decarb, E-ELEC, etc.
Cumulative spend doubled
over two years prior to FY
23-24.
•Total budget is not inclusive of any additional
24 Major Variables
% Customer Participation 85%
% BAAQMD Compliance 75%
SVCE Admin Cost (%) 20%
Income Group AMI Range ($ for family of 4) Offering
% SVCE
Housing
Annual
HPWHs
through
SVCE
SVCE Annual
Rebate &
Finance Cost
Annual
Admin Cost
Total Annual
SVCE Cost
Very Low <60% (<$84,960) Full cost coverage 1% 50 $0.4M $0.08M $0.5M Low 60-80% ($84,960 - $113,280) $4,500 rebate 9% 790 $3.6M $0.7M $4M Median 80-150% ($113,280 - $212,400) $2k + 0% financing 49% 4,285 $12.4M $2.5M $15M High >150% ($212,400) $1k or 0% financing 41% 3,560 $4.6M $0.9M $6M SMB - $2k + 0% financing - 300 $0.9M $0.2M $1M
TOTAL 100% 8,685 $21M $4M $26M
Item 4
PRESENTATION
Appliance Support Needed - Example
Item 4
PRESENTATION
Community Advocates Ranking Recommendations
26 Item 4
PRESENTATION
Thank you! M svcleanenergy.org
|^| [email protected]
SILICON VALLEY
CLEAN ENERGY 27
1 • Subtitle
New SV Clean Energy
PowerPoint Template
2024 Legislative Report and
2025 Policy Platform and
Legislative Ad Hoc Committee
Bena Chang, Director of Government and Legislative Affairs December 11, 2024
Item 5
PRESENTATION
2 Objectives
1. Summarize 2024 legislative year and forecast
2025 legislative activities.
2. Requesting SVCE Board approval of:
• SVCE’s 2025 Legislative Policy Platform; and
• Creation of the 2025 Legislative Ad Hoc
Committee.
Item 5
PRESENTATION
3 Recap of 2024 Legislative Year + 2025
Forecast
2024 Review
• State – affordability, programs reporting, investments through Proposition 4
• Federal – education on CCA model
2025 Forecast
• Regionalization
• Affordability
• Defense of federal funding, permitting streamlining
Item 5
PRESENTATION
4 2025 Legislative Policy Platform
No proposed changes to main guiding principles
• Affordability and Rates
• Climate Change Mitigation/Fuel Switching
• Clean, Reliable Grid
• Competitive Equity/Do No Harm
• Health Impact/Safety
• Equity
Item 5
PRESENTATION
5 2025 Legislative Policy Platform - Updates
Includes feedback from Ad Hoc Committee
• Refined affordability policies
• Support optimizing utility allowances for affordable
housing, streamlining process/timelines for
energization, and increased access to submeter data
• Support fair valuation of Distributed Energy
Resources, policies to encourage demand flexibility
Item 5
PRESENTATION
6 2025 Legislative Policy Platform - Updates
Includes feedback from Ad Hoc Committee
• Advocate for CCA program autonomy, streamlined
reporting standards
• Inclusion of community and health benefits in cost-effectiveness tests • Removed Climate Bond and Provider of Last Resort
fees
Item 5
PRESENTATION
7 Board’s Engagement on Legislation
Regular communication and action requests on high-priority issues • Communications
• Monthly written update in CEO Report
• Ad hoc verbal updates to Board on high priority
legislation
• Legislative Ad Hoc Committee
• Board Role
• Advocacy support on priority legislation
Item 5
PRESENTATION
8 Legislative Ad Hoc Committee
Request Board approval to establish Legislative Ad Hoc Committee.
Purpose:
• Facilitate engagement between SVCE
Board and staff on legislative issues
Item 5
PRESENTATION
9 Recommendations
1.Approve SVCE’s 2025 Legislative Policy
Platform; and
2.Create the 2025 Legislative Ad Hoc
Committee
Item 5
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Policy Streamlining
Project
Michael Callahan
Demarie Weber
December 11, 2024
Item 6
PRESENTATION
2 Recommendation for Board
Adopt staff’s proposed revisions to policies including the following:
Policies for Adoption Policies for Retirement
• Finance Accounting Policy
• Finance Budget Policy
• Finance Purchasing and
Spending Policy
• Finance Investment Policy
• Finance Delinquent
Accounts & Collections
Policy
• Finance Capitalization
Policy
• Finance Customer
Generation Rates
• IT Information
Technology Policy
• Finance Capital Projects Policy
• IT Information Systems Use
Policy
• IT Email Use Policy
• IT Asset Management Policy
• IT Internet Usage Policy
• IT Security Plan Policy
• IT Access Control Policy
• IT Password Protection Policy
• IT Malware Defense Policy
• IT Security Audit Policy
• IT Disaster Recovery Policy
• IT Threat-Risk Assessment
Policy
• IT Satisfaction Policy
• IT Data Breach Policy
• IT Workstation Security for
HIPPA Policy
• IT Clean Desk Policy
Item 6
PRESENTATION
3 Recommendation for Board
Adopt staff’s proposed revisions to policies including the following:
Policies for Adoption Policies for Retirement
• G&A Files and Records
Management Policy
• G&A Vehicle and Charger
Use Policy
• G&A California Public
Records Act Policy
• G&A CEO Absence Policy
• G&A Hybrid Meetings
Policy
• HR Personnel and
Reimbursement Policy
• G&A Travel and Meeting Expense Reimbursements Policy
• G&A Vehicle Use Policy
• G&A Charging Station Policy
• HR Smartphone Stipend Policy
• HR Recruitment Incentive Policy
• HR Volunteer Time Off Policy
• HR Unpaid Leave Policy
• HR Paid Time Off Cash Out
• HR Tuition Assistance Policy
• HR Cash in Lieu of Health Benefits Policy
• HR Fitness Reimbursement Benefit Policy
Item 6
PRESENTATION
4 Framework
2024 Policy Refresh
November 2023: Discussion with
Finance and Administration
Committee
Review all policies for needed
updates
Ensure right level of detail
November 22, 2024:
Executive Committee
Recommended Changes
General and
Administrative
2024: Internal staff work
to recommended
changes
Update and reduce
language
Eliminate
redundancies
Transfer extensive or
sensitive details to
standards
Keep key policy details
at the Board
November 25, 2024:
Finance and
Administration Committee
Recommended Changes
General and
Administrative
Finance
Information Technology
Human Resources
December 11, 2024:
Board Meeting
Adopt Changes
Retire policies
Adopt new
policies
December 2024:
After Board
decision
Staff Adopts all
finalized
standards
Near-term Post
Adoption
Roll out to staff
Long-term Post
Adoption
Regular reviews
Regular trainings
Item 6
PRESENTATION
O
November 2023: Discussion with
Finance and Administration
Committee
• Review allpolicies for needed
updates
• Ensure right levelof detail
November 22, 2024:
ExecutiveCommittee
Recommended Changes
• General and
Administrative
December 11,2024:
Board Meeting
Adopt Changes
• Retire policies
• Adopt new
policies
Near-term Post
Adoption
• Roll outtostaff
fai
2024: Internalstaff work
to recommended
changes
• Update and reduce
language
• Eliminate
redundancies
• Transfer extensive or
sensitive details to
standards
• Keep key policy details
at theBoard
November 25, 2024:
Finance and
Administration Committee
Recommended Changes
• General and
Administrative
• Finance
• InformationTechnology
• Human Resources
December 2024:
After Board
decision
• StaffAdopts all
finalized
standards
Long-term Post
Adoption
• Regular reviews
• Regulartrainings
5 Policies, Standards, and Procedures
New structure proposed for rules guiding the agency’s work • Policies - Board approved
• High-level
• Enable conduct with specified limitations
• Standards - CEO approved
• Operational-level details
• Establish additional details and controls to guide policy implementation • Procedures - CEO approved
• Step-by-step process
• Provides clear direction for staff to perform certain functions consistently within the bounds of policies and standards Item 6
PRESENTATION
6 Controls Considered
• Designed to prevent malicious activity related to fulfilling policies
• Examples of controls:
• Required reporting to the Board Committee with jurisdiction over the policy (Executive or Finance and Administration)
• Delegated CEO purchasing authority must be documented • CFO must approve all wire and ACH transfers
• Additional controls in standards and procedures
Item 6
PRESENTATION
7 RECORDS BY TYPE (%)
STANDARD
30 (37%)
POLICY
21 (26%)
RETIRED
30 (37%)
SVCE
82 DOCUMENTS
TAKEAWAYS
63% (52 of 82 records) are existing records.
• 26% (21 of 82 records) are policies.
• 37% (30 of 82 records) are standards.
• 1% (1 of 82 records) is a handbook that includes
information found in policies and standards.
37% (30 of 82 records) are retired policies.
• 10% (3 of 30 retired policies) fall under General and Administrative
• 13% (4 of 30 retired policies) fall under Finance
• 27% (8 of 30 retired policies) fall under Human
Resources
• 50% (15 of 30 retired policies) fall under Information Technology
Policy
HANDBOOK
1 (1%)
Standard
Handbook
Retired
Status Summary
2024 Policy Refresh
Item 6
PRESENTATION
8 KEY TAKEAWAYS
1) Delegates $250k
CEO signing
authority
2) Removes Fossil Fuel
Investments
3) Increases
capitalization limits
to $5K
• Clarified the F&A Committee doesn’t need to be five members • Clarified the capital projects and debt limit rules will be standards • Added delegations of purchasing authority and solicitation requirements • Investment policy migrated several detailed sections to a standard • Clarified SVCE does not have the power of disconnection for delinquent accounts
• Moved Customer Generations Rates and Chart of Accounts policies to a standard
Other Finance Revisions
Finance Policy Takeaways
2024 Policy Refresh
Item 6
PRESENTATION
9 Finance
2024 Policy Refresh
SUMMARY GRAPHIC – FINANCE
FP-01 FP-02 FP-04 FP-06 FP-08 FP-09 FP-10 FP-11
FS-07 FS-01 FS-03 FS-06 FS-08 FS-04
FP-03 FP-05 FP-07 FP-13
FP01 – Accounting
FP01A01 – Establish Audit Committee
FP01A02 – Establish Finance and Administrative
Committee
FP02 - Budget
FP04 - Debt Limitations
FP06 – Purchasing and Spending
FP08 - Investment
FP09 - Financial Reserves
FP10 - Delinquent Accounts & Collections Policy
FP11 - Capitalization Policy
ERMP - Energy Risk Management Policy
FS01 - Capital Projects
FS03 - Customer Generation Rates
FS04 - Investment
FS06 - Purchasing Card Standard
FS07 - Chart of Accounts
FS07A01 - Chart of Accounts
FS-08 - Purchasing and Spending
ERMS - Energy Risk Management Standard
[Retired] FP03 - Capital Projects Policy
[Retired] FP05 - Customer Generations Rates
[Retired] FP07 - Purchasing Card Policy
[Retired] FP13 - Chart of Accounts
[Transferred] FP12 - Files and Records Management
Policy to GAP-10 - Files and Records Management Policy
ERMP
ERMS
9 Policies
7 Standards
4 Retired
Item 6
PRESENTATION
10 KEY TAKEAWAYS
1) Replaced previous
IT policies with new
model policy and
standards
2) Transferred
language of former
policies (15 retired
policies) to
standards
• Adopted a new model IT policy and associated standards • Staff undertook a review to ensure the key provisions in SVCE’s former policies were included in the new policy and standards • Content moved to standards is either operational-level detail or sensitive from an IT or data security perspective
• Retired IT Satisfaction Policy to allow staff more discretion to determine the means to ensure satisfaction with IT systems
• Migrated policies related to Information Systems Use, Email Use, IT Asset Management, Internet Usage, IT Security Plan, Access Control, Password Protection, Malware Defense, Security Audit, Disaster Recovery, Threat-Risk Assessment, Data Breach, Workstation Security for HIPAA, and the Clean Desk Policy into new IT standards
Other Information Technology Revisions
Information Technology Policy Takeaways
2024 Policy Refresh
Item 6
PRESENTATION
11 Information Technology
2024 Policy Refresh
SUMMARY GRAPHIC – INFORMATION TECHNOLOGY
ITP-01
ITS-01 ITS-02 ITS-03
ITP-01 ITP-02 ITP-03
ITP01 – Information Technology
ITS01 - Vehicle and Charger Use
ITS02 - Data Management
ITS03 - Asset Management
ITS04 - Information Security
ITS05 - Identity and Access Management
Network Management
ITS06 - Physical Security
ITS07 - Vulnerability Management
ITS08 - Business continuity Disaster Recovery
ITS09 - Incident Response
ITS09A01 - Incident Response Plan
[Retired] ITP-01 Information Systems Use Policy
[Retired] ITP-02 Email Use Policy
[Retired] ITP-03 IT Asset Management Policy
[Retired] ITP-04 Internet Usage Policy
[Retired] ITP-05 It Security Plan Policy
[Retired] ITP-06 Access Control Policy
[Retired] ITP-07 Password Protection Policy
[Retired] ITP-08 Malware Defense Policy
[Retired] ITP-09 Security Audit Policy
[Retired] ITP-10 Disaster Recovery Policy
[Retired] ITP-11 Threat-Risk Assessment Policy
[Retired] ITP-12 IT Satisfaction Policy
[Retired] ITP-13 Data Breach Policy
[Retired] ITP-14 Workstation Security for HIPAA Policy
[Retired] ITP-15 Clean Desk Policy
ITP-08 ITP-09 ITP-10
ITP-04 ITP-05 ITP-06
ITP-11 ITP-12 ITP-13
ITP-07
ITP-14
ITS-04 ITS-05 ITS-06 ITS-07 ITS-08 ITS-09
ITP-15
1 Policy
9 Standards
15 Retired
Item 6
PRESENTATION
12 KEY TAKEAWAYS
1) Delegates rules for
staff travel and
reimbursement to
CEO
2) Records retention
was refreshed to
streamline the
information
• Established reimbursement rules for the Board in the Purchasing and Spending Policy
• Files and Records Management document categories and retention timelines were consolidated and reformatted for clarity
• Created new standards for Files and Records Management with operational details
• Vehicle and Charger Use policies consolidated into a single new policy with a new standard
• CEO Absence and Hybrid Meetings policies were refreshed with administrative clean up
• California Public Records Act was refreshed to include exceptions Other General and Administrative Revisions
General and Administrative Policy Takeaways
2024 Policy Refresh
Item 6
PRESENTATION
13 General and Administrative
2024 Policy Refresh
SUMMARY GRAPHIC – GENERAL AND ADMINISTRATIVE
GAP-01 GAP-04 GAP-05 GAP-06 GAP-07 GAP-08 GAP-09 GAP-10 GAS-01 GAS-03*
GAS-02
GAP-01 GAP-02 GAP-03
GAP01 - Vehicle and Charger Use
GAP04 - California Public Records Act
GAP05 - Code of Ethics
GAP06 - Chair and Vice Chair Vacancy
GAP07 - CEO Absence
GAP08 - Ticket and Pass Distribution
GAP09 - Hybrid Meetings
GAP10 - Files and Records Management
GAS01 - Vehicle and Charger Use
GAS02 - Files and Records Management
GAS02A01 - Files and Records Management - Retention
Periods
GAS03 - Travel and Meeting Expense Reimbursements
[Retired] GAP01 - Travel and Meeting Expense
Reimbursements
[Retired] GAP02 - Vehicle Use Policy
[Retired] GAP03 - Charging Station Policy
8 Policies
3 Standards
3 Retired
*GAS-03 falls under HRP-01 Personnel and Reimbursement
Item 6
PRESENTATION
14 KEY TAKEAWAYS
1) Consolidated
personnel authority
in a new policy
2) Transferred
language of former
policies (8 retired
policies) to
standards
• Created new policy for Personnel and Reimbursement from existing authority • Resolution 2021-22 on personnel authority
• Budget Policy with overhire authority
• Travel and Reimbursements policy absorbed
• Refreshed HR Handbook standards to remain consistent with changes in law and SVCE practices
• Moved Smartphone Stipend, Recruitment Incentive, Volunteer Time Off, Unpaid Leave, Paid Time Off Cash Out, Tuition Assistance, Cash in Lieu of Health Benefits, and Fitness Reimbursement Benefit policies to standards Other Human Resources Revisions
Human Resources Policy Takeaways
2024 Policy Refresh
Item 6
PRESENTATION
15 Human Resources
2024 Policy Refresh
SUMMARY GRAPHIC – HUMAN RESOURCES
HRP01 – Personnel and Reimbursement
HR Handbook
HRS01 – Technology Stipend
HRS02 - Recruitment Incentive
HRS03 - Volunteer Time Off
HRS04 – Unpaid Leave
HRS05 – Paid Time Off Cash Out
HRS06 – Tuition Assistance
HRS07 – Cash in Lieu of Health Benefits
HRS08 – Fitness Reimbursement Benefits
HRS09 – Flexible Work
[Retired] HRP-01 Smartphone Stipend Policy
[Retired] HRP-02 Recruitment Incentive
[Retired] HRP-03 Volunteer Time Off
[Retired] HRP-04 Unpaid Leave
[Retired] HRP-05 Paid Time Off Cash Out
[Retired] HRP-06 Tuition Assistance
[Retired] HRP-07 Cash in Lieu of Health Benefits
[Retired] HRP-08 Fitness Reimbursement Benefits
HRP-01
HR
Handb
ook
HRS-01
HRS-02
HRP-01HRP-02HRP-03HRP-08
HRP-04HRP-05HRP-06HRP-07
HRS-03
HRS-04
HRS-05
HRS-06
HRS-07
HRS-09
1 Policy
9 Standards
1 Handbook
8 Retired
Item 6
PRESENTATION
16 Process
• (Previous Steps)
• Nov 22 – Executive Committee recommendation
• Nov 25 – Finance and Administration Committee recommendation • Dec 11 – Board Meeting
• All policies
• Dec 12 to 20 – Staff adopts standards
• Q1 2025 – Roll out policy changes to staff & train incoming Board members
• Continuous improvement with regular reviews and trainings Item 6
PRESENTATION
17 Thank you! Questions?
Item 6
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
2025 SVCE Elections Information
Item 7
PRESENTATION
Item 7
PRESENTATION
(2) Purpose
Review the selection process and timeline for 2025 SVCE appointments of Board Chair, Vice Chair, and committees. •
•
Item 7
PRESENTATION
December 13th:
O Selection Process
January BOD Meeting
Board Chair/Vice Chair
Appointments
Executive Committee
Appointments
Letters of Interest requested for Board
Chair/Vice Chair
Notification of Executive Committee interest
requested
Deadline: December 31st: Notification to Board
Clerk for Board Chair, Vice Chair, or Executive
Committee due
Selections made at annual meeting on January
8, 2025 by vote 3
Item 7
PRESENTATION
O Selection
February
All other Committee
Appointments (Audit,
Finance and
Administration, any Ad
Hoc Committees)
Process (Cont.)
January 10th:
Request for members to notify Board Clerk of
interest in serving on remaining Committees
Deadline: January 31st: Notification to Board
Clerk for committee interests due
Selections made at February 12, 2025 Board of
Directors Meeting by vote.
Item 7
PRESENTATION
CD Timeline Snapshot
Dec
Jan
Feb
11th: SVCE BOD meeting Info item
13th: Requests for Board Chair/Vice Chair letters and Executive Committee interest emailed
31st: Board Chair/Vice Chair Interest Letters & Executive Committee notification of interest due
10th: Selections made at BOD meeting
11th: Written information for committee interests distributed 31st: Interest responses for committees due
12th : Remaining committee assignments made at BOD meeting 5 Item 7
PRESENTATION
Thank you
6 Item 7
PRESENTATION
Appendix
7 •
•
•
•
Item 7
PRESENTATION
CD SVCE Committees Outline
Executive Committee (Appointments in January)
Provides input and support on operational matters
Membership: Up to six primary board members; typically
includes Chair and Vice Chair of the Board
Finance and Administration Committee (Appointments in February) Works with SVCE staff on items related to financial and administrative issues that impact the agency
Membership: No fewer than three members, no greater than six members
8 •
•
•
Item 7
PRESENTATION
CD SVCE Committees Outline
Audit Committee (Appointments in February)
Works with SVCE staff on the initiation and receiving of the annual audit.
Membership: No fewer than three members and no greater than six members
*Pendinq approval: 2025 Legislative Ad Hoc Committee
(Appointments in February)
General advocacy strategy development for state and federal activities; limited to policy areas identified by the board for 2025.
9