October 12, 2023
Providing Marketing &
Communications Services
Presented by REACH Strategies Team
Dedicated Team POCs
reach-strategies.org 2
Michelle Davis
Communications
Program Strategist, III
Amanda Scarborough
Director, Program Strategy
and Development
reach-strategies.org 3
About REACH Strategies
• Established in 2011
• Mission-driven, full-service communications firm
• Focus on education and outreach for:
• Utilities & CCAs
• Public agencies
• Non-governmental organizations
• Work extends across the country in B2B and B2C
communications
• Strategic partnership approach
reach-strategies.org 4
Integrated Marketing and
Communications Support
• Web Management &
Design
• Social Media
• Email Campaigns
• Press and Media
Relations
• Program Collateral
• Customer Engagement
• Team Extension
Engagement Kick-Off: March 2023
• Developed and launched new look/feel
• Lifestyle and diverse imagery
• Engaging graphics
• Social media presence
• Five-year anniversary logo design
reach-strategies.org 5
Branding
• 5-year anniversary community events
(3)
• Ride & drive delivering 60 EV
experiences
• Community event participation
• Sponsorship coordination
• Event preparation
• Promotion
• EV Program Phase 2 survey
administration
• 542 responses
• Two email sends
• Average open rate of 63.2%
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Community Engagement
• Social media campaigns
• 60% increase in LinkedIn followers
• 63.74% increase in Facebook engagement
• 918.75% increase in Instagram engagement
• Content development
• Monthly blog
• Infographics
• 5-Year anniversary video
• Newsletter revamp
• 47% open rate, up 7.6%
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Residential Marketing
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Digital Resources
• Complete audit (Feb. 2023)
• Security monitoring
• Page development
• Events
• Home EE (draft)
• Business EE (in dev.)
• Rebuild home page (in dev.)
• Ongoing support and management
• JRM & Rate tables
• LinkedIn engagement
• AgFIT program award highlights
• Press placement in Winters Express
• UltraGreen Spotlight social media
campaign
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Commercial Marketing
• Contact list development
• Over 200 contacts
• Press release development (4)
• Distribution and coordination
• Received four placements
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Press & Media Relations
• 5-Year Anniversary Board
celebration coordination
• 5-Year impacts highlights
• Giveaway development
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Regulatory/Stakeholder
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Project Management
Driven Dashboard: Continuous Updates
• Single project management portal
• Running notes
• Monthly/annual reporting
• Budget tracking
Q & A
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Closing / Next steps
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Amanda Scarborough
[email protected]
(707) 889-0493
Michelle Davis
[email protected]
(909) 918-6464
Valley Clean Energy Board Meeting – October 12, 2023
via video/teleconference
Item 15 – Legislative Updates 15
yvonnehunterphotography.com
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 1 6
Item 15 – Legislative Update
Change is Afoot
➢ Many new legislators in 2023, many more to come in 2025 ➢ Legislative Leadership:
o New Assembly Speaker Robert Rivas
o Incoming Senate Pro Tem Mike McGuire
➢ Budget Riches to Budget Decline
o 2022 = $97.5B Surplus | 2023 = $31.5B Deficit
➢ Bonds
o Energy funding for the first time in a legislative bond proposal o Mental health bond – March 2024 ballot
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 1 7
Item 15 – Legislative Update
AB 1373 (Garcia) Central Procurement Entity
➢ Started out as Governor’s proposal in trailer bill
o Did not identify CPE, allowed IOUs to play the role
o Did not specify resources
o Included IRP Enforcement
o Burdensome RA Penalty Provisions
➢ Lobbied to move proposal into policy bill
➢ AB 1373 became the vehicle in the Spring – VCE Oppose Unless Amended ➢ Resolved IRP and RA penalty issues early – VCE moved to Neutral position ➢ CPE details refined through the end of session – PCE reaffirmed Neutral position Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 1 8
Item 15 – Legislative Update
AB 1373 (Garcia) Continued
➢ Resources that DWR may procure are limited to resources that:
o Are not fossil-fuel based
o Are found by the PUC to not be under contract at sufficient levels o Have a construction and development lead time of at least five years o Does not use combustion
➢ Provisions provide clarity on how DWR will cover RA deficiencies of LSEs o Deficient LSEs will be assessed a capacity payment
o Deficient LSEs may also be assessed a penalty, the capacity payment may cover all or a portion of the penalty ➢ Authorizes LSEs to voluntarily obtain incremental resources from DWR Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 1 9
Item 15 – Legislative Update
Budget Woes
➢ After two years of surplus, state budget settled at a $31.5 billion deficit ➢ Governor reduced, deferred, or shifted many aspects of climate budget, including energy programs
o Governor has intimated a climate bond can backfill
➢ Budget may be in worse shape, tax filing deadline extended to October ➢ Budget outlook for FY 2024-25 is continued deficit
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 2 0
Item 15 – Legislative Update
What’s Ahead
➢ Climate Bond
o Must be signed by Governor by June 27, 2024, to be placed on November 2024 ballot o Proposals right now around $15.5 billion total with $2 billion for clean energy programs ➢ Clean Energy Reliability Investment Program Funding
o $400 million in FY 24-25
o $500 million in FY 25-26
➢ Hydrogen Policy
o How it’s produced and how it’s used
➢ Regional Grid
o West-Wide Governance Pathways Initiative
Valley Clean Energy Board Meeting – October 12, 2023
Item 16 - 2023 Operating Budget Update 2024 Preliminary Budget 21 Public Comments
22 To Provide Public Comment on any agenda item please:
➢ E-mail 300 words or less to: [email protected] OR
If in person, complete a COMMENT CARD
OR
Join the Public Comment Queue by
➢ “Raising Hand” on Zoom Meeting
OR
➢ Press *9 if joining by phone
Emailed comments received before the item has concluded will be read into the record.
Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Overview
VCE’s short-term (2024) outlook indicates some stability in power market prices and increased volatility for Resource adequacy and Renewable Energy Credits (REC’s). VCE’s Longer-term outlook (2025-2027) indicates healthy margins/reserves.
This presentation will provide:
• Key Factors influencing short-term operating budgets
• 2023 Financials Update
• 2024 Preliminary Budget and Multi-Year Forecast Update 23 Item 16 – 2023 Operating Budget Update / 2024 Preliminary Budget Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Key factors – Operating Budgets Results
• Load Forecast - 2023 energy use has been significantly less than forecasts due to (1) residential and (2) commercial use related to agriculture due to wet and long winter, lower overall summer temperatures, and reduced heat events. • Power Prices - Average forward market power prices have decreased from the high 2022/23 winter costs due to an abnormally wet winter and increased hydro production.
• Budgeted revenues - Budgeted normalized load revenues have not fully materialized due to the lower overall load as described above. 24 Item 16 – 2023 Operating Budget Update / 2024 Preliminary Budget Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 25 Item 16 – 2023 Operating Budget Update / 2024 Preliminary Budget Energy sector has
increased by 10%+
compared to other
sectors
2022 CPI Trend (Prior Year) 2023 CPI Trend (Current Year) Energy sector has
decreased -4%
compared to other
sectors
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 26 Item 16 – 2023 Operating Budget Update / 2024 Preliminary Budget Net ~20% Overall Increase in Energy Sector for 2023 & 2024 Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 27 Item 16 – Operating Budget Update
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
600,000
650,000
700,000
750,000
800,000
850,000
900,000
950,000
1,000,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 MWh
Renewable 13% 18% 54% 80% 82% 85% 86% 83% 80% 77%
Annual RPS Position
Fish Lake Contracted
Ormat Contracted
Willow Springs Contracted
Gibson Contracted
Resurgence Contracted
Putah Creek Contracted
Indian Valley Contracted
Aquamarine Contracted
Short-Term RECs
VCE Retail Load
RPS Requirement
VCE Annual RPS Positon
• VCE’s Power Purchase
Agreements have
significantly increased
in 2023 and 2024
• RA Contributions from
PPAs have been
outpaced by RA cost
increases
• Forecast for 2025 and
2026 see reduced VCE
RA requirements
Resource Adequacy (RA)
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 28 Item 16 – 2023 Operating Budget Update / 2024 Preliminary Budget 2023 Budget Proforma Update (8 Months Actuals – unaudited) Key Highlights
• Budgeted Revenues - Lower than normalized load has resulted in lower revenues. • Power Costs – Lower near term power costs have been outpaced by RA and Renewable Energy Credits prices.
Description Variance
Revenue $ 109,500 $ 98,800 $ (10,700)
Power Cost $ 71,650 $ 75,200 $ (3,550)
Other Expenses $ 6,430 $ 6,600 $ (170)
Net Income $ 31,420 $ 17,000 $ (14,420)
APPROVED
2023 BUDGET
2023 Proforma
(8 Month Actuals +
4 Month forecast)
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 29 Item 16 – 2023 Operating Budget Update / 2024 Preliminary Budget Updated Multi-Year Forecast
Key Factors in Multi-Year Forecast
• Continue to contribute to reserve funds to obtain an initial investment grade credit rating • PCIA: 2024 PCIA to have a net zero change due to decreased energy cost recovery offset by increased recovery of resource adequacy costs and renewable energy credits.
• PG&E Bundled rates (PCIA & Generation): 4% decrease – Results in approximately $4M reduced revenue incorporated into table for 2024
Actuals
Description 2022 2023 2024 2025 2026 2027
Customer Revenue 85,323 98,800 87,500 98,000 101,000 105,000 Power Cost 75,130 75,200 68,600 62,900 68,500 77,500
Other Expenses 4,469 6,600 6,800 7,100 7,500 7,900
Net Income 5,724 17,000 12,100 28,000 25,000 19,600
2022 Proforma
(8 Month Actuals +
4 Month Budget) Preliminary Forecast*
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 30 Item 16 – 2023 Operating Budget Update / 2024 Preliminary Budget Other Considerations
• High Power Prices - Generally, increased power costs increase PG&E rates, decrease PCIA, and increase VCE’s ability to recover costs and set competitive rates. • Budget Other operating expenses (not including power costs) are nearly flat compared to the 2023 budget, reflecting only a 3% increase
Next Steps
• Mid October– PG&E filing for PCIA & Rates
• November 2023 – Preliminary 2023 Budget
• December 2023 – Adopt 2024 Budget & Rates
Discussion
Valley Clean Energy Board Meeting – October 12, 2023
Item 17 – 3-Year Programs Plan Update, 2024 Program Concepts 31 yvonnehunterphotography.com
Public Comments
32 To Provide Public Comment on any agenda item please:
➢ E-mail 300 words or less to: [email protected] OR
If in person, complete a COMMENT CARD
OR
Join the Public Comment Queue by
➢ “Raising Hand” on Zoom Meeting
OR
➢ Press *9 if joining by phone
Emailed comments received before the item has concluded will be read into the record.
Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 33 Item 17 – 3-Year Programs Plan Update, 2024 Program Concepts The 3-Year Programs Plan (3YPP) focuses on two main strategies; to:
1) Promote the electrification of transportation, residential and commercial buildings, and agricultural operations.
2) Encourage and incentivize energy efficiency, demand response flexibility, and resiliency.
2021-2024 Strategy and Priorities
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 34 Item 17 – 3-Year Programs Plan Update, 2024 Program Concepts Active Pilots and Educational Programs:
o EV Rebate Program
o Electrify Yolo
o ERRO (to be launched 2023)
o Heat Pump Pilot
o EV Information (Educational)
Strategy 1: Promote the electrification of transportation, residential and commercial buildings
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 35 Item 17 – 3-Year Programs Plan Update, 2024 Program Concepts Active Pilots and Educational Programs:
• AgFIT
• ERRO (to be launched 2023)
• OhmConnect
• Energy Efficiency Information (Educational)
Strategy 2: Encourage and incentivize energy efficiency, demand response flexibility, and resiliency.
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 36 Item 17 – 3-Year Programs Plan Update, 2024 Program Concepts • Video Bill Explainer
• Customer Concierge Service
2024 Program Concepts
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 37 Item 17 – 3-Year Programs Plan Update, 2024 Program Concepts • Continue active programs
• Re-design eligibility process, T&Cs, admin needs for
Phase 2 EV Rebate Program
• Design/Implementation forms completed for 2024
concepts, seek POTG/CAC feedback, bring back to Board
Next Steps