Valley Clean Energy Board – February 10, 2022via video/teleconference Item 18 – Strategic Plan Report
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Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 3 Item 18 – Strategic Plan Report
Overview
Inform the general manager and CAC of the summarized progress on the VCE Three-Year Strategic Plan goals ratified at the November 12, 2020.
Quarterly Report to VCE Management
Staff will report quarterly to the Interim General Manager on the status of goals, objectives and metrics for which they are responsible.
Annual Report to Board and CAC Staff
Staff will report annually to the Board and CAC on the status of goals, objectives and metrics, and will recommend any mitigations or amendments as may be necessary for Board approval.
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GOAL 1 - FINANCIAL STRENGTH
Maintain a strong financial foundation and manage costs to achieve long-term organizational health.
1.1 - Maintain consistently healthy cash reserves to fund VCE’s mission, vision, and goals
1.2 - Achieve an investment grade credit rating by end of 2024.
1.3 - Commit to fiscal efficiencies to build a program foundation from which to deliver customer and community value.
1.4 - Manage customer rates to optimize VCE’s financial health while maintaining rate competitiveness with PG&E.
Obj.
2021 - Key Accomplishments & Developments
2022 Planned Activities
1.1 Developed collections policy for review by CAC & Board Renewed credit line with RCB through calendar 2021.
Received preliminary CAPP approval for funding ~$800K of COVID related receivables Collections policy approval Q1 2022
Renew and increase credit line(s)
1.2 Budgeted for a financial advisor to support the process of establishment of first credit rating Issue RFP for financial advisor Q1 2022
Recover cash reserves ~80+ Days
1.3 Review financial reserve, dividend, and programs fund policy
1.4 Adopted cost-based rate policy
Implemented rate change to maintain cash reserve minimums Develop an additional analytics model for cost study and long-term rates.
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GOAL 2 - PROCUREMENT & POWER SUPPLY
Manage power supply resources to consistently exceed California’s Renewable Portfolio Standard (RPS) while working toward a resource portfolio that is 100% carbon neutral by 2030.
2.1 - Continue to identify and pursue cost effective local renewable energy resources.
2.2 - Acquire sufficient bundled energy and renewable resources to achieve VCE’s greenhouse gas reduction targets.
2.3 - Deploy storage and other strategies to achieve renewable, carbon neutral, resource adequacy, and resiliency objectives.
2.4 - Identify and pursue cost effective, local distributed energy (e.g., behind the meter rooftop Solar + storage) resources to help meet reliability needs.
2.5 - Study and present options for achieving a 100% carbon neutral resource portfolio as well as 100% carbon free resource portfolio (carbon free hour by hour) by 2030.
2.6 - Optimize the hedging strategy to mitigate risk in accordance with the energy risk guidelines and procurement plan.
Obj.
2021 - Key Accomplishments & Developments
2022 - Planned Activities
2.2 Q1 2021, executed a 90MW PV +75MW BESS 20 yr. PPA with Resurgence. (COD – Q422) Q4 2021, executed a 72MW PV + 36MW BESS 15 yr PPA with Willow Springs. (COD – Q423) Note: Both PPAs bring VCE stable, low-cost power, resource adequacy, and RPS compliance.
2.3 Participation in RFPs with CC power (1) for (2-3) long-duration energy storage systems. (2) firm clean resources (e.g., geothermal, biomass, other new technologies.) Note: Both support CPUC mandate for additional resources – D.21-06-035 Finalize negotiations and bring them forward for Board approval.
Evaluate firm proposals and contract awards for Board approval.
2.5 Staff and Carbon neutrality task group – (1) Awarded RFP to Energeia to perform portfolio analysis for 100% carbon neutral and carbon-free hour-by-hour. (2) Provided input and reviewed results for final recommendations Final report to be delivered in February 2022 to Board to begin
2.6 N/A for 2021
Comprehensive review planned to incorporate long-term PPAs (EROC participation)
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GOAL 3 - CUSTOMERS & COMMUNITY (3.1 - 3.4)
Prioritize VCE’s community benefits and increase customer satisfaction and retention.
3.1 - Develop engagement strategies to increase awareness of, and participation in, local control of VCE’s energy supply and programs with a particular focus on engaging disadvantaged and historically marginalized communities.
3.2 - Develop programs and initiatives to better support community goals, including supporting member agency achievement of energy-sector emissions reduction targets.
3.3 - Design and implement a strategy to more effectively engage local business and agricultural customers.
3.4 - Build awareness and trust of the VCE brand through direct engagement with customers, communities and organizations.
Obj.
2021 - Key Accomplishments & Developments
2022 - Planned Activities
3.1 Initiated a mini-campaign in partnership with Davis Food Co-op on UltraGreen opt-ups, including collateral for the campaign.
Rolled out an online platform for customers to easily opt up online without their PG&E account number Launch, publicize, create awareness of programs for the low-income/at-risk Expand opt-up campaigns for Woodland and Winters (w/Spanish) Implement a program for opt-up sponsorship of low-income customers
3.2 Followed up on cost analysis for all member jurisdictions to opt up to UltraGreen re-initiated conversations about opting up.
Engaged the Woodland Sustainability Committee on VCE efforts and building electrification.
Engaged with the County of Yolo on the Climate Action Commission.
Upgrade analysis of impacts for enrollment of Member jurisdictions in support of targeted community goals.
Engage Key decision-makers in emission reduction programs.
3.3 AgFIT pilot (1) Approved by CPUC with launch in 2022 (2) outreach developed for key ag customers Developed and Launched campaign for UltraGreen commercial customers to advertise efforts and engage additional key accounts.
Successful AgFIT Launch in May-22.
Include additional key commercial accounts to the UltraGreen campaign.
3.4 Directly engaged with Mutual Housing (MH) management staff and conducted three customer centered public meetings (1 in Spanish). This resulted in much more awareness of VCE’s brand and activities.
Made significant improvements to the VCE website, including adding content on carbon-free vs. renewables, highlighting key UltraGreen customers on the homepage, updating FAQs, updating the financial resources page, and adding the VCE Power Contract map.
Staff conducted two educational presentations in elementary schools about VCE and climate change Staff co-lead energy related class at the UC Davis Graduate School of Management.
Continue to engage and continue conversations about partnering with MH on programs, e.g., multi-family EV Engage with GRID Alternatives for multi-family, EV charging, and workforce development training.
Continue to seek out opportunities to make classroom presentations with the local educational system.
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GOAL 3 - CUSTOMERS & COMMUNITY (3.5 – 3.7)
Prioritize VCE’s community benefits and increase customer satisfaction and retention.
3.5 - Develop customer programs and initiatives that prioritize decarbonization, community resiliency and customer savings.
3.6 - Measure and increase customer satisfaction, using tools such as surveys and focus groups, while maintaining an overall participation rate of no less than 90%.
3.7 - Integrate and address the concerns and priorities of emerging and historically marginalized communities in the design and implementation of VCE's services and programs.
Obj.
2021 - Key Accomplishments & Developments
2022 - Planned Activities
3.5 Made significant progress on three programs in Q3-4 2021. Ag pilot approved by the CPUC; programs for both EV rebates and heat pump rebates/support are in progress.
Staff was invited to present on building decarbonization to the Woodland Sustainability Committee (WSC) in January 2022 Approve and launch heat pump and EV rebate program; program design for higher incentives for low-income customers.
Incentivize low-income community with programs (CARE/FERA, PIPP, and ELRP.)
3.6 Maintained customer participation rate of over 90%
Reviewed and modified Opt-out process for improvements such as live customer service representative engagement for better awareness and education prior to final customer decision.
Focused engagement and outreach with communities with low participation.
3.7 Participating in Arrearage Management Program (AMP) and Percentage Income Payment Plan (PiPP) with PG&E and other CCAs so that customers at high risk of disconnection can get support in paying arrearages and avoid disconnection.
Monitor AMP and PiPP implementation with PG&E and SMUD.
Continue posting in Spanish, measure success in Mar. 2022
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GOAL 4 - DECARBONIZATION & GRID INNOVATION
Promote and deploy local decarbonization and grid innovation programs to improve grid stability, reliability, community energy resilience, and safety.
4.1 - Working with a variety of local, regional and state partners, develop a grid innovation roadmap for VCE’s service territory that supports community energy resilience and reliability.
4.2 - Develop a VCE decarbonization roadmap to guide near and long-term program decisions and offerings.
4.3 - Increase participation in VCE’s UltraGreen 100% renewable product.
4.4 - Identify external funding sources to support decarbonization and grid-related programs and initiatives.
Obj.
2021 - Key Accomplishments & Developments
2022 - Planned Activities
4.1 Worked w/ the CAC on a building electrification statement. The Board adopted a statement supporting and encouraging the electrification of new buildings.
Engage with the County of Yolo planning commission on decarbonization efforts.
4.2 Completed draft Carbon Neutral by 2030 Report (CNx2030).
Present final CNx2030 Report to Board Q1; Q3 return to Board with recom. based on CNx2030 Report.
Energy Resilience Task Group to contribute to building local energy resilience for essential community needs.
4.3 Followed up with member jurisdiction staff for UltraGreen Analysis & adoption Initiated a mini-campaign in partnership with Davis Food Co-op on UltraGreen opt-ups, including collateral for the campaign.
Rolled out online platform for customers to easily opt up online without their PG&E account number Continue to identify opt-up solutions for member jurisdictions Analyze VCE opt-up numbers in Q2 2022
4.4 Applied for County of Yolo American Rescue Plan funding for downtown Winters reliability upgrade.
Applied for funding to CPUC under the Reliability OIR to develop and deploy an agricultural autoDR pilot. Received $3.25M in funds for the 3-year pilot.
Continue to identify ARP and other funding sources with member districts, state, and federal agencies.
Tier 2 advice letter to be filed Jan 5, 2022.
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GOAL 5 - REGULATORY & LEGISLATIVE AFFAIRS
Strongly advocate for public policies that support VCE’s Vision/Mission.
5.1 - Work with CalCCA and other partners to proactively engage State regulators, legislators, and other State authorities in developing policy that furthers VCE’s mission and facilitates our contributions to decarbonization, grid reliability, energy resiliency, affordability, local programs and social equity.
5.2 - Develop relationships with community stakeholder organizations that foster support for VCE‘s mission and vision.
5.3 - Optimize regulatory compliance activities.
Obj.
2021 - Key Accomplishments & Developments
2022 - Planned Activities
5.1 Actively engaged in CalCCA sponsored legislation on PCIA – SB 612 (Portantino) Active support of AB 843 (Aguiar-Curry) – access for CCA’s to BioMat resources CAC Leg/Reg Task Group – bi-weekly meeting
Ongoing engagement in support legislation related to CCAs
5.2 Identify key stakeholder groups within VCE service territory – in process, Attended Winters Chamber of Commerce on 4.12.21
Met with Cool Davis to explore formalizing a relationship to work on shared decarbonization and electrification goals.
Decision around a structure to formalize relationships with community orgs (e.g., MOU Template)
5.3 Engaged with CalCCA PCIA forecasting team to make more informed forecasts of PCIA and PG&E rates.
Recruitment of Regulatory Staffing
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GOAL 6 - ORGANIZATION, WORKPLACE & TECHNOLOGY (6.1 – 6.4) Analyze and implement optimal long-term organizational, management, and information technology structure at VCE.
6.1 - Develop a roadmap to evaluate and guide future steps toward formation of a local Publicly Owned Utility (POU).
6.2 - Evaluate and pursue opportunities for shared services with other CCAs for certain functions.
6.3 - Develop an evaluation framework to guide future expansion opportunities beyond the existing service territory.
6.4 - Identify optimal management, staffing and contracting structure of VCE in the near and long term; factors include balance of internal staff vs. consultant support services, transition of leadership positions to permanent internal employees.
Obj.
2021 - Key Accomplishments & Developments
Planned Activities
6.1 Continuing to monitor POU formation activities in PG&E service territory.
Outreach to CMUA
Evaluate funding options for transitioning to a POU.
6.2 Continued Board and staff level engagement with CC Power for joint CCA procurement Continued Board and staff level engagement with CC Power for joint CCA procurement.
6.3 Ongoing investigation of other CCA expansion evaluation methods used in the process.
Participation with the City of Stockton regarding the City’s CCA feasibility study Continued Board and staff level support for expansion opportunities.
6.4 Budgeted (1) half time regulatory Analyst and (1) Intern for Marketing and Support Recruitment for Analyst & Intern for 2022.
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GOAL 6 - ORGANIZATION, WORKPLACE & TECHNOLOGY (6.5 – 6.8) Analyze and implement optimal long-term organizational, management, and information technology structure at VCE.
6.5 - Promote diversity, equity and inclusion in leadership, hiring, promotion, and contracting policies.
6.6 - Support health, wellness and a productive workplace.
6.7 - Create an innovation-focused culture that rewards proactive participation, problem solving, new ideas, and creative use of partnerships.
6.8 - Deploy a modernized IT infrastructure that enables knowledge management, analytics and collaboration through robust use of data and information resources.
Obj.
2021 - Key Accomplishments & Developments
Planned Activities
6.5 Completed annual diversity report (GO 156) for CPUC Actively recruited for new hire Analyst position on multiple platforms, including women in science and engineering associations.
Will complete annual diversity report (GO 156) for CPUC
6.6 Continued remote work option to address on-going pandemic issues.
Will continue remote work option as necessary to address on-going pandemic issues.
6.8 Working with County of Yolo GIS team on VCE platform for Dashboard and GIS mapping Adopted Datto as an organizational network drive
Implement Dashboard and GIS Mapping Q222