6. 1 EXISTING SYSTEM CAPACITY BALANCE
Capacity balance is shown in Figure 6- 1 for the Existing System Scenario. This Scenario assumes no additions to the system are added through 2037 and reflects the expiration of the Big Horn wind purchase after 2031.
The figure indicates sufficient generation capacity exists to meet capacity needs throughout the planning horizon; the excess generation capacity ranges from a high of 38 MW to 10 MW during the 2018- 2037 planning period. ( Section 8 will present a similar capacity balance for the preferred plan; the figure is a simplified summary of the CRAT table included in Appendix A for the preferred option.)
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6. 2 EXISTING SYSTEM SCENARIO ENERGY REQUIREMENTS AND RENEWABLE
ENERGY LEVELS
Figure 6- 1 provides additional information about the adequacy of the Existing System Scenario.
Table 6- 1 indicates the total generation from resources, purchases, and sales that occur under the Existing System Scenario. As seen in Figure 6- 2, the Station' s 1x1 and 2x1 natural- gas fueled combined cycle units are most active in the power market over the planning period, and market purchases account for a significant amount of COR' s energy requirements.
Figure 6- 3 indicates the ability to meet its RE targets if no additional RE resources are added. In the figure, a year in which a shortfall in RE occurs is displayed by the stacked bar chart not meeting the red line.
As indicated in Figure 6- 3, if no additional RE resources are added, RE targets starting in 2019, would not be met and the shortfall would continue through 2037. The shortfall would become increasingly severe, such that in 2030, only a 30 percent RE contribution would be received as compared to the 50 percent requirement. For the remainder of the 2037 study period, the shortage would dramatically increase once the Big Horn wind PPA expiries in 2031. Looking at the REC outlook, it is clear that the Existing System Scenario results in a deficiency of REC.
Figure 6- 3 is very significant because it shows that, while the Existing System can meet capacity requirements and energy needs, it is not acceptable in that it does not comply with the obligations necessary to meet the targeted RE levels.
Figure 6- 4lists data pertaining to the GHG emissions under the Existing System Scenario. These emissions are compared to the proposed CARB limits under the low and high targets proposed by CARB staff in July 2018. The 2030 targets proposed are between 57,000 (low target) and 101, 000 high target) of MTCOZe. Figure 6- 4 indicates that under the Existing System Scenario, 2030 emissions are projected to be105, 408 MTCOZe; this is in excess of the low and high targets proposed by CARB staf£ This means that, from an environment and GHG ( and RE) perspective, the Existing System Scenario is not a viable plan.
Based on the shortcomings of the Existing System Scenario, several additional Scenarios were developed and evaluated as part of this IRP process. The objective was to balance resource adequacy, economics, stakeholder input, and meet obligations for RE and GHG reductions. These scenarios are presented in Section 8.
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6. 3 SUPPLY SIDE RESOURCE TECHNOLOGY COSTS AND CHARACTERISTICS In consideration ofthe objective of achieving low electric costs, long-term reliability, and fuel diversity to lower risk of dependence on a single source, a list of multiple resource options were developed to evaluate as candidates to serve future resource needs. All incremental options considered in the analysis were RE solar or wind resources. These options are discussed further in this section.
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To obtain indicative RE PPA pricing, several locations were selected for modeling, with alternative price and performance estimates developed for each location. In total, five different modeling profiles were developed for different solar projects representing potential project sizes that could be located within each region. The projects are described in Table 6- 2 and were sized to reflect sample projects of differing proportions.
The solar projects in Table 6- 2 were assumed to consist of single axis tracking systems ( SAT). SAT systems tend to have better output in the late afternoons when generation is often the most valuable. The solar production for each location was modeled with SAM' s Detailed PV modeling module and used weather data representing each location. The inverter loading ratio ( ratio of module capacity to inverter capacity) was assumed to be 1. 3. Typical SAT systems have inverts of
1. 25 to 1. 30 today and are optimized for project location. The capacity factor was calculated based on the AC project capacity. Additionally, the long-term degradation ofthe systems was assumed to be 0. 7 percent per year.
It is noted that, independent of, and prior to the IRP process, analysis indicated that the addition of a 10 MW PV PPA in the 2021 timeframe would be beneficial. The project is being pursued through the NCPA. While the exact cost and performance will be determined through competitive bidding, the Site 1 project in Table 6- 2 is considered to be proxy for the project. The Project is currently in Phase Two ( out of three) in development and this phase includes all pre- construction engineering, design, and environmental review tasks. On June 5, 2018, the Council approved the Phase Two activities that include the following actions:
1) Authorize participation in Phase Two of NCPA Solar Project 1 including, approving the Second Phase Agreement, the Power Management and Administrative Services Agreement, and the Amended and Restated Facilities Agreement; 2) Authorize the City Manager, or designee, to execute the agreements and any associated amendments and administer the project;
3) Adopt Resolution approving the 34th Amendment to City Budget Resolution No. 2017- 057 transferring needed funds for phase two. 13 Due to the relatively advanced stage of this project, all scenarios developed in Section 8 of this IRP incorporate the 10 MW PV project in 2021, with the exception of the Existing System Scenario. The economic analysis in Section 8 will demonstrate that the addition ofthe project not only contributes to achieving RE and GHG targets, but the project is cost-effective when compared to the Existing System Scenario. For this reason, the addition of the Solar Project in 2021 ( and not the 13 City of Redding Report to the City Council, 4. 5( a)— Authorization to Participate in Phase Two of NCPA Solar Project 1, Daniel Beans, Director of Electric Utility,
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Table 6- 2 Solar Systems and Modeled Performance
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2 OR/ CA 100 130 20. 8% 27. 0% 0. 7%
3 Arizona 100 130 25. 5% 33. 1% 0. 7%
4 Central Valley 20 26 23. 5% 30. 6% 0. 7%
5 Central Valiey 100 130 22. 9% 29. 8% 0. 7%
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Two wind projects were also evaluated as developments within possible future planning Scenarios.
The wind project assumptions are shown in Table 6- 3. Wind projects now tend to be 100 MW or more, so it was not realistic to model smaller wind farms. It was assumed, however, that COR could purchase less than the full output of a large wind farm.
Wind capacity factors were derived from analysis performed for various geographic energy zones as part of the California Public Utility Commission' s ( CPUC) Renewable Portfolio Standard ( RPS) Calculator effort, to which Black& Veatch contributed. No degradation was assumed for wind farms.
The location of the solar and wind projects used in this RFP is shown in Figure 6- 5. The location impacts the project capacity factor, capital cost, and transmission cost.
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RE project costs vary depending on system size, year installed, and location costs. The capital costs provided represents an all- in installed cost, or total capital expenditures ( CAPEX), including EPC14, owner' s costs, developer fees, interconnection, financing fees, and construction interest. This total cost is used as the capital cost when calculating the levelized cost of energy ( LCOE) generation. As part of the CAPEX, Black& Veatch also assumed that interconnection costs for solar and wind would vary by size, as shown in Table 6- 4 and Table 6- 5. Actual interconnection cost will be highly site specific. The total operating expenses, including 0& M, property taxes, equipment replacement, and other administrative costs assumed in the analysis are generic and do not attempt to capture locational differences across the various project' s sites.
Table 6- 4 2020 Cost Assumptions for Solar SAT Systems( Nominal$) iu
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2 OR/ CA 100 5 1, 440 1, 108 26 2. 5%
3 Arizona 100 5 1, 380 1, 062 26 2. 5%
4 Central Valley 20 1 1, 730 1, 331 26 2. 5%
5 Central Valiey 100 5 1, 580 1, 215 26 2. 5%
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14 EPC stands for" engineer, procure, and construct". Additional trade tariffs were imposed on imported solar cells in January of 2018, resulting in increases in module costs. However, the new tariffs are set to decline over the next four years, and module costs are expected to continue to fall. Thus, module costs are assumed to be similar to 2017( evels by 2020.
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1 North CA 10 0. 64 2, 049 1, 576 33 2. 5%
2 OR/ CA 100 6. 4 1, 667 1, 282 33 2. 5%
3 Arizona 100 6. 4 1, 598 1, 229 33 2. 5%
4 Central Valley 20 1. 28 2, 003 1, 541 33 2. 5%
5 Central Valiey 100 6. 4 1, 829 1, 407 33 2. 5%
Source: Black& Veatch
Table 6- 7 2030 Cost Assumptions for Wind Systems ( Nominal$) i, , iu i , iu
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6 North CA 100 1, 968 45 2. 5%
7 Arizona 200 1, 794 45 2. 5%
Source: Black& Veatch
6.... L rr liz s E r Y f L E
To model the LCOE of each of the representative projects, Black& Veatch assumed a third- party independent power producer ( IPP) structure where PPA pricing is based on the LCOE. A number of financial incentives were incorporated into the modeling, as discussed below. As a tax exempt entity, COR cannot directly use the investment tax credit, however, by contracting with an IPP under a PPA, COR can share in the tax credit through the PPA pricing.
II ir51' lr r i f` r, rl i iiYlr, ri l I r ar, i. ai. r, a ri: i I r, ar i. arr, r GJISYIr, ri a E..' 1 Packet Pg. 546 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric
6.... Fi 6 1 ss o rns
The 2018 Tax Reform bill changed the federal corporate tax rate from 35 percent to 21 percent while still allowing state income taxes to be tax deductible, resulting in the composite income taxes for California, Arizona, and Oregon as shown below.
Table 6- 8 Assumed Federal and State Income Tax Rates
Vmi ii iii iiiii iii iiiYi imii fiii iiii iii iii iii iii iiii iiiiiii ii iui iii lu iiii ii iiilii u l i fii i Federal Income Tax 21% 21% 21% State Income Tax 8. 84% 6. 97% 7. 70%
Composite Income Tax 28. 0% 26. 5% 27. 1%
Source: Black& Veatch
6.... ° ° s
The Consolidated Appropriations Act, signed in December 2015, extended the investment tax credits ITC) that apply to solar technologies and wind. Wind project owners can opt for the ITC in lieu of the production tax credit( PTC), which was also extended, but wind typically benefits more from PTC at better wind sites. The credits do decline over time, as shown in Table 6- 9. The availability of tax credits shapes the strategy of purchasing wind and solar from private developers through a PPA instead of self-building since COR is a tax exempt.
ITC is a credit taken as a percentage against the capital cost of a RE system. The capital cost basis allowed is defined by the IRS. If the project owner opts for the ITC, the depreciation basis will need to be reduced by 50 percent of the ITC ( e.g., 30 percent ITC, therefore => Depreciation Basis would be 85 percent of the capital cost) PTC is an inflation- adjusted per- kilowatt- hour ( kWh) tax credit for electricity generated by qualified energy resources and sold by the taxpayer to an unrelated person during the taxable year. The duration ofthe credit is 10 years after the date the facility is placed in service.
For 2020, solar projects can receive a 30 percent ITC against the total capital cost of their project, if the project" begins construction" by the end of 2019. For this analysis, it was assumed that the solar projects begin construction in 2019 and come on- line in 2020 to take advantage of the 30 percent ITC. Otherwise the incentive drops to 26 percent in 2020. By 2030, the ITC drops to 10 percent.
While wind project owners can select between the ITC and the PTC, the drop in the benefits of the ITC occur sooner, so by 2020, there are no incentives available for wind, unless construction started in 2019. In this case, it was assumed that construction starts in 2019 and wind owners take advantage of the PTC at a rate of$ 9 per MWh, escalated at inflation for the first 10 years of the project. By 2030, wind does not receive any production tax credits, as displayed in Table 6- 9.
II ir51' lr r i f` r, rl i iiYlr, ri l I r ar, i. ai. r, a ri: i I r, ar i. arr, r GJISYIr, ri a E..' 13 Packet Pg. 547 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Table 6- 9 Tax Credit Assumptions
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Large Wind
Estimated P' I' per 9 1V/ A 1V/ A 1V/ A 1V/ A
MWh)
Source: Black& Veatch
6.... I r pr 6 0
Historically, solar and wind projects have been able to utilize a 5- year accelerated depreciation schedule ( MACRS) that helped improve project economics. The 2018 Tax Reform bill now allows RE projects to take 100 percent tax depreciation on the total cost of the project in year 1. Industry experts believe, while quite generous, few investors would be able to take full advantage of this new depreciation schedule, so the modeling in the analysis assumed a 5- year MACRS schedule, where approximately 90 percent of the total capital cost would be depreciable.
6.... 6 s i l
IPPs have multiple methods of funding RE projects. For modeling purposes, it was assumed that the debt/ equity structure for both solar and wind projects would be as shown Table 6- 10. In recent years, the cost of capital for RE projects has dropped substantially in terms oflower interest rates on debt as well as lower equity return requirements by investors. The debt term was modeled for 20 years, while the life of the project was 25 years in the analysis performed.
Table 6- 10 Cost of Capital Assumptions for Solar and Wind IIIIII
iii iiiii iii iiiii i iiiiiii iiiiiiii ii ii ii iii ii ii ii iiii iu' iiiiiiii iii ii ii Ili i iiiii iiiiiiiii Debt Percentage 50 60
Debt Interest Rate( percent) 4. 5% 4. 5%
Debt term( Years) 20 20
Economic life( Years) 25 25
Cost of equity( after tax) ( percent) 10% 10%
Source: Black& Veatch
6.... 7 L rr liz s E r Y
The LCOE for the renewable projects with commercial on-line dates in 2020 and 2030 resulting from the input assumptions and analysis are shown in the tables below. As displayed in Table 6- 11, Table 6- 12, and Table 6- 13, the LCOE represents what is assumed to be a fixed price, 25- year PPA.
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Table 6- 11 Renewable Energy Projects LCOE ( Nominal$) 2020 COD IC IC
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1 Solar SAT North CA 10 27. 9% 1, 770 30% 53
2 Solar SAT OR/ CA 100 27. 0% 1, 440 30% 48
3 Solar SAT Arizona 100 33. 1% 1, 380 30% 38
4 Solar SAT Central Valley 1 20 30. 6% 1, 730 30% 48
5 Solar SAT Central Valiey 2 100 29. 8% 1, 580 30% 46
6 Wind North CA 100 30. 0% 1, 700 $ 9/ MWh $ 60
7 Wind Arizona 200 30. 0% 1, 550 $ 9/ MWh $ 56
Source: Black& Veatch
Table 6- 12 Renewable Energy Projects LCOE ( Nominal$) 2030 COD IC I
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1 Solar SAT North CA 10 27. 9% 2, 049 10% 85
2 Solar SAT OR/ CA 100 27. 0% 1, 667 10% 75
3 Solar SAT Arizona 100 33. 1% 1, 598 10% 59
4 Solar SAT Central Valley 1 20 30. 6% 2, 003 10% 76
5 Solar SAT Central Valiey 2 100 29. 8% 1, 829 10% 73
6 Wind North CA 100 33. 1% 1, 968 0 75
7 Wind Arizona 200 33. 1% 1, 794 0 70
Source: Black& Veatch
Since the ITC and PTC vary year by year, the following table shows the year by year LCOE for projects that come on- line for that year, assuming construction start dates of the previous year.
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lii iiiiiiii iiiiii m iiiiii iiiii i IICii uiii Viii
Solar SAT Solar SAT Solar SAT Solar SAT Solar SAT Wind Wind Central Central
North CA OR/ CA Arizona Valley Valley North CA Arizona
2020 53 48 38 48 46 60 56
2021 58 52 41 52 50 70 65
2022 65 57 45 58 55 70 66
2023 75 66 52 67 65 71 66
2024 77 67 53 69 66 71 67
2025 78 69 54 70 67 72 67
2026 79 70 55 71 68 72 68
2027 81 71 56 72 69 73 68
2028 82 72 57 73 70 73 69
2029 83 73 58 75 71 74 69
2030 85 75 59 76 73 75 70
Source: Black& Veatch
Note: The above cost only includes energy; transmission is not included
6. 4 ENERGY EFFICIENCY
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California has continually increased the energy efficiency of new construction and appliances since the Warren Alquist Act( Act) of 1974. These efficiency standards ( Title 24) have since been updated to mandate Zero Net Energy ( ZNE) residential new construction starting in 2020. ZNE homes require energy efficiency that will be achieved through implementing a high efficiency envelope ( insulation, windows, etc.), and efficient Heating, Ventilation, and Air Conditioning HVAC) units. The remaining energy consumption must be offset by distributed generation, predominantly rooftop solar generation, sized so that the annual building consumption (excluding natural gas) is approximately equal to building's electricity generation. Effective in 2030, all new commercial construction will also be required to meet the ZNE standard. In addition, the Act requires that fifty percent of existing commercial buildings be retrofitted to ZNE by 2030 and fifty percent of new major renovations of state buildings be ZNE compliant by 2025. The increased energy efficiency standards will contribute to a lack of load growth in future years.
I irS I' lr r i f` r, rl i iiYlr, ri l r ar, i. ai. r, a ri: i I r, ar i. arr, r GJISYIr, ri a E..' 1E Packet Pg. 550 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric
6. 5 ENERGY STORAGE
As explained in Section 5. 5, COR has been heavily involved in the TES market for years and has invested more than $ 6 million in TES technologies.
Technology changes have led to increasing interest in the use of batteries in the energy market.
Battery Energy Storage Systems ( BESS), which can be independent systems not linked to EVs, can be useful in a broad variety of grid-beneficial applications including use as a capacity resource, for load shifting, and frequency and voltage support.
The CEC has recommended that POU' s consider the role of storage in addressing over- generation of RE when solar energy production exceeds local demand. In California, this can occur particularly during the daytime peak solar production periods. Ifthe excess RE is used to charge a BESS system, the stored energy can be used during the evening ramping period and allowing utilities to avoid GHG emissions that would otherwise be produced if the energy demand was met by conventional thermal resources.
A major benefit of BESS is the ability to provide multiple services in one location to meet the needs ofthe grid. BESS can be configured to respond to grid needs in less than a second, thereby providing the capability for a faster response time than conventional generation resources. Some of the concepts being considered for BESS applications include:
Load Shifting: In load shifting applications, BESS are charged with lower priced energy which can help mitigate curtailment of excess renewable generation— when renewable generation exceeds demand— and the stored energy used at a later time, such as during evening ramping periods.
Peaking Supply: The power output capacity of BESS can be used to meet capacity resource adequacy requirements and replace conventional peaking capacity to provide short- term power needs during periods of peak demand.
Frequency Regulation and Voltage Support: BESS can be used to mitigate load and generation imbalances and maintain grid frequency and voltage needed for grid stability.
Spinning Reserve: BESS can be utilized to provide energy needs within 10 minutes, as an alternative to conventional generation that must be kept online and synchronized to the grid in anticipation of a need.
Firming of Intermittent Resources: BESS can be used to" firm" energy production of a variable energy resource— such as solar or wind generation— and provide a more predictable energy profile to the grid.
Transmission iJpgrade Deferral: BESS may offer a way to defer or avoid transmission upgrades.
BESS applications are often selected for primary use in either a power or energy application. Power applications tend to be of shorter duration (approximately 15 minutes to one hour) with operational profiles involving frequent rapid responses or cycles. Energy applications generally require longer duration ( approximately 1 hour or more).
II ir51' lr r i f` r, rl i iiYlr, ri l I r ar, i. ai. r, a ri: i I r, ar i. arr, r GJISYIr, ri a E..' 17 Packet Pg. 551 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric No,. IV' drll II VIto-;:'711n"° a. 11V` nh, ", W' m l". u", ulh,,,PII IYIIF°` Ili drlVn". 0 i drl6" Iln"° Il i„ u i drl' o-;:'„ Because lithium ion batteries are widely accepted as a proven technology for BESS applications, a lithium ion battery was chosen as the technology for this analysis. Table 6- 14 highlights the BESS performance parameters used in the IRP analysis.
Table 6- 14 Representative Performance Parameters for Lithium lon Battery Systems IIIII
iiiYii iiiiii iiiii iiiii iiiiiiiii iii iiiiiiiii m iiiiiiii i iilu iii i Facility Capacity Power Rating, MW 5
Discharge Duration at Rated Capacity, hours 4
Facility Energy Rating, MWhl 20
Round- Trip Efficiency, percent 85%
Estimated life, cycles 5, 000
Installed Levelized Capital Cost,$/ kW- yrz 533
Fixed 0& M Costs,$/ kW- yr 20
Variable 0& M Costs,$/ kWh( charge or discharge) 0. 001 to 0. 005 Notes:
1. The rating is based on instalied project size.
2. Battery cost scales with MWh, whereas balance of plant and PCS costs tend to scale with power( MV1. Because of this, instalied costs tend to have a wide array of values.
Source: Biack& Veatch
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7. 1 MODELING ASSUMPTIONS
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The load forecast used for the IRP analysis was presented in Table 4- 3 of Section 4. 0. o . o, o^" oo-;:'' II, II a. 7IV 4 u a. 7". 0 a° 711 1 i, m l C @"" 416" a 7 ir"° ii"IV a 7 II IIm"°: ' II II°°",' W For the purposes of economic analysis, a projection of natural gas fuel prices and power energy prices were required ( see Figure 7- 1, Figure 7- 2, and Figure 7- 3). The methods used to produce these prices by Ascend Analytics Curve Developer and PowerSimm software suite are described in Section 7. 2 below.
Spot market prices for gas and power are simulated in the PowerSimm construct. Table 7- 1 demonstrates the average annual simulated spot gas and power prices ( mean, 5th, and 95tn percentiles ofthe simulations) delivered to PG& E City Gate and NP- 15 respectively. These prices drive model given that COR dispatches their own units, or transacts with these markets, to find the most economic electricity supply.
Table 7- 1 Natural Gas and Market Energy Prices Assumed in the IRP i IIIII I
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Ilii iiiiiiii iiiiii m uiii i iP ii iiiiiiiiiiii iiiii i Ilii iiii i u9 iiii Pi ii iiiiiiiiiii iiiii ii Ilii iiii i u9 iiii Pi ii iiiiiiiiiii iiiii ii Ili iii i iP 2033 2. 05 4.00 6. 52 42. 49 71. 69 111. 11 39. 11 41. 78 44. 83 2034 1. 95 4. 10 7. 03 39. 63 74. 41 121. 38 42. 04 44. 91 48. 19 2035 2. 04 4.20 8. 55 44. 99 77. 31 123. 11 45. 20 48. 28 51. 80 2036 2. 04 4. 31 8. 24 48. 73 80. 34 123. 41 48. 59 51. 90 55. 69 2037 1. 95 4.41 7. 76 51. 97 83. 56 126. 09 52. 23 55. 80 59. 87 The Average Market Energy Price data in the last three columns are average annual houriy values.
Source: Black& Veatch
POWER
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The analysis utilized a 2. 5 percent discount rate. This discount rate was applied to future costs and revenues to determine estimated future net costs of serving load on a net present value basis.
7. 2 ASCEND ANALYTICS PLANNING SUITE - TOOLS FOR MODERN RESOURCE
PLANNING
The Ascend Analytics Planning Suite is a set of software programs consisting of Curve Developer CurveDev) market harvesting and modeling, PowerSimm Planner ( PowerSimm) production cost model for system operations simulation, among other tools. The suite is designed, maintained, and supported by Ascend Analytics and was used for the IRP. oo s'", o, II, IVC @"" 4 n"' Ct, @" a. 711n@, "' i
dr\\ 11q" 41V", uIIII IYII V It °° II i dri drl l".'u i drll'" a. 711 II;°' 5': II II°", W Forecasting market prices by CurveDev begins by harvesting forward price quotes from the Intercontinental Exchange ( ICE). This is done for markets available at PG& E City Gate, California Carbon Allowance, NP15, and MidC. As there are no ICE quotes for COB, this value is derived from historical relationships to the NP15 and MidC price. Beyond the time horizon covered by the harvested broker quotes to the end of the study period, a 2. 5% annual increase is used for gas and energy prices and 7. 5% for carbon prices. Together, the broker harvest and post processing represents a single price curve for each market and are summarized annually in Table 7- 1.
Studies in this report use harvested data as of June 25, 2018. PowerSimm will pull in the latest price curve from CurveDev up until this date, and use this as the mean for all simulated prices. For stochastic studies, PowerSimm also pulls in the 90 business days prior to the June 25th harvest date of the study when simulating prices. The 90 days of data is used to calculate the correlations between markets and dates, as well as the volatility of each market. This information is then used to simulate a distribution of prices that matches the historical correlations and volatilities, while still scaling the mean to the most recent price curve. These prices were rolled- up to produce the annual data as presented in Table 7- 1.
Additional information on CurveDev and PowerSimm' s methods and capabilities can be found in Appendix D.
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dr\\ 11q" 41V"', uIIIIVIIYII It °° II i dri drl l".'u i drll'" i drh," 411" II M 1"°", ui drl,,, ll" i" 4 I a 711nIInIIIIY"„ Combined, CurveDev and PowerSimm tools form a platform for modern resource planning, in an era of increasing uncertainty in electricity supply driven by the deployment of variable renewable generation. The uncertainty in electric supply brings with it risk that will affect the cost and viability of potential projects needed to meet state- mandated renewable portfolio standards. Not only does PowerSimm provide the appropriate mean cost estimates under multiple correlated scenarios, but is also able to monetize ( assess an equivalent cost of the risk. This assessment, known as the" risk premium", can be equated to an insurance premium used to protect against uncertainty that could be caused by weather, market prices of gas or power, and variability of nondispatchable resources. While PowerSimm can report an abundance of useful output data, for IVIr irrliii> fa a ai, ii ilSYlr, ri a, I r l a, i i i IVIr S Yl ir ir lr.; i Packet Pg. 556 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric economic assessments of potential candidate plans, it is sufficient to compare the system annual mean cost and the annual risk premium together.
Additional information on CurveDev and PowerSimm' s method and capabilities can be found in Appendix D.
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In this section, the economic analysis performed for the system is described. In general, the analysis is aimed at minimizing system costs— a sentiment that was of utmost importance to Stakeholders— while also meeting the several targets that have arisen under the state RPS and environmental policies described in Section 2, including the following goals:
Low cost and reliability
50 percent renewable energy by 2030 and meet intermediate goals per SB 350 Increased energy efficiency per SB 350
2030 GHG within the July 2018 CARB staff recommended targets (low of 57,000 MTCO2e and high of 101, 000 MTCO2e per SB 350)
Based upon past experience and Stakeholder input, an important target has been identified:
selecting a resource planning scenario that reasonably balances multiple types of RE resources.
Specifically, to achieve a balance in PV and wind resources over the planning horizon is vital as a balanced portfolio may reduce risks associated with over-reliance on a single technology. Portfolio diversity protects customers from contingencies such as market fuel and power prices, fuel and power availability, as well as changes to the load and resources. Also, a balanced wind and solar PV energy generation combination is deemed to be a better fit to hourly system energy demand profile than a plan heavily weighted toward either wind or solar. A balanced wind and solar PV energy generation profile is also considered prudent for a number of other reasons.
As one example, just as there is a reluctance to develop additional hydroelectric renewable resources because of concerns about possible adverse impacts on fish and other wildlife, some industry stakeholders and several COR Stakeholders have expressed concerns about over reliance on wind generation due to the possible impact on avian populations. Thus, in addition to the above bulleted items, staff developed and ranked Scenarios with the objective of achieving a balance between wind and PV RE generation.
8. 1 ECONOMIC EVALUATION FRAMEWORK
The aim ofthe economic analysis is to meet these requirements while minimizing the long-term present worth cost of incremental power to customers. This cost is commonly called the cumulative present worth cost( CPWC) of a Scenario. The CPWC includes" incremental" costs, which refers to the power supply costs incurred directly or indirectly through interaction with the market and power producers during the 2018- 2037 evaluation period. Incremental costs do not include existing fixed costs or common costs such as general and administrative costs, as these are considered sunk costs or costs common to all future Scenarios. However, the capital costs associated with new resources are included as are variable costs incurred ( directly or indirectly) in a resource plan.
Due to reliance upon interaction with the power market, it is important that an economic analysis projecting future power costs model interaction with the market and project the costs and revenues associated with purchases from, or sales into, the market. A plan that relies heavily on assumed market purchases may incur risks associated with future power energy market prices increasing at a rate higher than assumed in the analysis. Therefore, to reduce the risk of higher retail rates associated with unexpected increases in future power energy market prices, plans with lower I v li.a Pir ri ri. i I r aial Y: a f..' 1
Packet Pg. 558 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric market purchases are preferable to plans with higher market purchases, all other factors being equal. Details about the modeling approach used to derive the CPWC are included in Section 8. 2.
8. 2 SCENARIO ANALYSIS
In the IRP, the CPWCs of several competing Scenarios were determined. A Scenario included one or more of seven potential solar and wind projects, first developed in Section 7, having the specifications summarized in Table 8- 1. The selection of projects listed in Table 8- 1 was based on the understanding from Section 6 that additional renewable resources will be required.
A total of eight Scenarios were evaluated through detailed modeling; these consisted ofthe Existing System Scenario ( identified as Scenario G), plus seven Scenarios that involved adding RE resources.
The various Scenarios evaluated are displayed in Table 8- 2, which also lists the specific projects from comprising each Scenario.
I v li.a Pir ri ri. i I r ; al Y: a f..
Packet Pg. 559 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Table 8- 1 RPS Project Definitions
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Name Local PV NorCal/ OR AZ PV CV PV 1 CV PV 2 NorCal/ AZ Wind w/ Bat PV OR Wind
Location Local OR/ NorCal Arizona Central Central OR/ Arizona Valley Valley NorCal
Type PV PV PV PV PV Wind Wind
Capacity( MW) 10 100 100 20 100 100 200
Scalable No Yes Yes No Yes Yes Yes
AC Capacity 27. 9% 27.0% 33. 1% 30. 6% 29. 8% 30. 0% 30. 0% Factor(%)
Annual Energy 24,440 236,520 289,956 53, 611 261,048 262,800 525, 600 MWh)
Annual 0. 70% 0. 70% 0. 70% 0. 70% 0. 70% 0. 00% 0.00%
Degradation(%)
Energy Storage? Yes Not Not Not Not Not Not
Yes/ No/ Maybe) included included included included included included ES Capacity( MW) 2. 50 Not Not Not Not Not Not
included included included included included included
ES Duration( Hrs) 4 Not Not Not Not Not Not
included included included included included included
Transmission None To COTP, To CAISO, NP26, To CAISO, To COTP, To CAISO, Requirements WAPA WAPA WAPA WAPA WAPA WAPA
LMP Market NP15 NP15 Palo Verde ZP26 SP15 NP15 Palo Verde Location( To
Value)
Transmission& 0.000 2. 258 3. 137 0.000 0. 000 $ 2. 258 3. 137 VERBS Costs
2018-$/ kW/ mo)
Transmission 0.000 0.000 11. 221 $ 11. 221 $ 11. 221 $ 0. 000 $ 11. 221 Costs( 2018-
MWh)
Transmission 5. 00% 4. 00% 4. 00% 4.00% 5. 00% 4.00%
Escalation Rate
Source: Black& Veatch
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Packet Pg. 560 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Table 8- 2 IRP Scenario and Projects
A
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A) Base Case MW: 10
Start: 2021
MWh r:
24,440
LCOE:$ 58
B) Balanced MW: 10 MW: 30 MW: 20 MW: 70
Mix Start: 2021 Start: 2028 Start: 2026 Start: 2032
MWh r: MWh r: MWh r: MWh r:
24,440 86,987 53, 611 183, 960
LCOE:$ 58 LCOE:$ 57 LCOE:$ 71 LCOE:$ 76
C) Balanced MW: 10 MW: 30 MW: 25 MW: 70
Mix- Alternate Start: 2021 Start: 2029 Start: 2026 Start: 2032 MWh r: MWh r: MWh r: MWh r:
24,440 70, 956 65,262 183,960
LCOE:$ 58 LCOE:$ 73 LCOE:$ 68 LCOE:$ 72
D) Heavy MW: 10 MW: 85
Wind Start: 2021 Start: 2026
MWh r: MWh r:
24,440 223, 380
LCOE:$ 58 LCOE:$ 68
E) Heavy MW: 10 MW: 85
Wind- Start: 2021 Start: 2026
Alternate
MWh r: MWh r:
24,440 223,380
LCOE:$ 58 LCOE:$ 72
F) Heavy MW: 10 MW: 90
Solar Start: 2021 Start: 2026
MWh r: MWh r:
24,440 212, 868
LCOE:$ 58 LCOE:$ 70
G) Existing
System
H) Optimized MW: 10 MW: 60 MW: 65
Balanced Mix Start: 2021 Start: 2026 Start: 2034
MWh r: MWh r: MWh r:
24,440 156,629 170, 820
LCOE:$ 58 LCOE:$ 68 LCOE:$ 77
Levelized Cost of Energy( LCOE) figures at stated at the plant bus bar and do not include transmission costs.
Source: Black& Veatch
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Packet Pg. 561 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric
8. 3 CONSOLIDATED RESULTS
The consolidated CPWC results for the Scenarios evaluated are shown in Table 8- 3. To facilitate interpretation, the results are presented as a" heat map" in which the best Scenario in any category is highlighted in dark green; Scenarios considered favorable but not the best in a category are shaded light green; Scenarios that are significantly less favorable than the best in a category are shaded light yellow, followed by rose colored and red colored shades signifying increasingly significant and unfavorable results compared to the best Scenario result in the category.
The Base Case Scenario in which 10 MW of local solar is added in 2021 is listed first in Table 8- 3.
This Scenario is important as it reflects the addition of the currently- planned Solar Project that is in the second phase of development( see Section 7). There are two key conclusions related to the Base Case Scenario.
First, by comparing the Base Case with the Existing System Scenario ( Scenario G) CPWC, it is clear that the Base Case has a lower CPWC. This helps to illustrate why adding the Solar Project( from Table 8- 1) provides benefit from a cost perspective and also by adding RE benefits over Scenario G.
This comparison explains the reason for identifying the Solar Project as the next resource addition and why this is considered to be the Base Case rather than the Existing System Scenario.
A second, very important conclusion about the Base Case Scenario is that, even though it achieves a higher RE percentage than Scenario G, it nevertheless falls short ofineeting the 2030 RE target of 50 percent. In fact, it achieves only 33 percent RE level in 2030 and also for the 2018- 2030 period.
Moreover, the Base Case Scenario is still very heavily reliant on wind energy ( 71 percent of all RE) even with the addition of the Solar Project in 2021. Due to these results, the Base Case is understood to contain the next project to be undertaken, but it is not considered to be the final mix of resources over the planning horizon. The need for additional renewable resources on the system beyond the 2021 solar addition led to the development ofthe remaining Scenarios in Table 8- 3. All of these, with the exception of Scenario G, involved the 2021 Solar Project, but also included additional RE resources after 2021.
Scenario H is the only plan identified in Table 8- 3 as having green or light green shading in all categories. Based on the overarching objective to balance economics, reliability, portfolio diversity, and environmental targets, Scenario H is considered to be the best overall plan in the 2019 IRP.
The Plan is within 2. 8 percent of the least cost plan; it achieves a 54 percent RE mix in 2030; it achieves all intermediate RE milestones ( in some years, the plan relies on banked RECs); and has a reasonably balanced mix of RE contributions- 53 percent from wind and 36 percent from solar.
In terms of lowest CPWC, Scenario D may appear on its surface to be the best plan as it is both costeffective and at 65 percent RE, it exceeds the mandated 2030 RE levels. However, this plan falls short in its lack of resource diversity—the plan is very heavily reliant on wind energy( 84 percent of all RE) and contains little solar energy( 6 percent). As a result, this plan receives low marks for its inability to achieve a balanced RE portfolio. This assessment is reflective of the preference that several Stakeholders expressed for solar energy and is consistent with the emphasis on a balanced RE portfolio.
Scenario C also achieves a very high percentage of RE in 2030 ( 65 percent) but is not economic and also suffers from a high reliance on wind energy. Scenario F is economically competitive and achieves 59 percent RE contribution, but the scenario is over- reliant on wind energy resources.
Scenario E reaches the best overall balance of RE production, with 42 percent coming from wind energy and 47 percent coming from solar energy projects. This plan also achieves all RE milestones I v li.a Pir ri ri. i I r ai. al Y: a f..
Packet Pg. 562 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric and reaches 61 percent in 2030. Nevertheless, the drawback of Scenario E is one of economics, as it achieves the favorable RE characteristics at a cost that is 6. 5 percent higher than the least cost Scenario D.
In least cost planning studies, it is common to consider a CPWC difference between two plans to be in the 1. 5 percent to 2. 5 percent range. The uncertainties involved in the SB 350 IRPs arguably increases this range, and a CPWC difference of 2. 0 percent to 3. 0 percent can reasonably be considered within the margin of error. As a result, it can be concluded that the RE benefits of Scenario E are obtained at a significantly higher cost than the plan having the lowest CPWC Scenario D). The issue, therefore, is whether a plan could be developed that better balanced cost and environmental benefits. The plan meeting these aims is the preferred plan, Scenario H.
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8. 4 DETAILED RESULTS OF THE PREFERRED EXPANSION PLAN
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As seen at the top of Figure 8- 1 and Figure 8- 2, existing sufficient resources and generation capacity are expected to meet energy needs throughout the planning horizon under Scenario H. The excess generation capacity ranges from 18 MW in 2018 to 43 MW in 2034 the planning period, once the RE projects are stated in terms of their firm capacity.
Table 8- 4, Figure 8- 1, and Figure 8- 2 reflect the addition of three renewable projects, the 2021 Solar Project( rated at 10 MW of which 3. 5 MW is firm), a second solar project in 2026 having a firm output of 21 MW, and a 2034 wind project having a firm output of 7 MW. The information in this table is simplified but reflects the comprehensive CRAT table included in Appendix A.
Table 8- 4 and Figure 8- 2 shows how the energy requirements will be met under Scenario H. Under the recommended plan, the 1x1 and 2x1 combined cycle projects are the only two generating units producing a significant amount of energy at the Station, while all RE projects are actively producing energy consumed by customers or sold into the market. Due to this market interaction, net sales are projected into the market starting in 2026 and for several ofthe subsequent years in planning period. It is seen in the table that the final two RE projects coming on-line in 2026 and 2034 are important contributors to the energy balance as soon as they go into commercial operation.
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As seen in the figure, Scenario H remains at or above the goal in all years with the allowances of banking RECs. Importantly, the figure shows that Scenario H maintains a positive REC balance over the entire planning period, meaning that, on the whole, the plan exceeds the cumulative RE credits during the planning horizon and never goes into a cumulative REC deficit in any year during the 2018- 2037 planning horizon.
Figure 8- 4 shows a projection of the GHG emissions in the form of MTCOZe during the planning horizon for the preferred expansion plan, Scenario H. Under this plan, there would be 99, 335 MTCOZe in 2030. This level of emissions is below the high target of 101, 000 in the CARB staff recommendations for the COR( although it is above the 57, 000 MTCOZe set as the lower end of the targeted range).
a".a " o, II II I° ° 5m:' IIII° h, "' s" ul" n"°"° '` drll u""' I fia. 71111i dr Table 8- 3 presented the CPWC of all Scenarios. The CPWC shown for Scenario H was $ 580, 966, 000.
In Table 8- 8, the derivation of the Scenario H CPWC is shown by year and by the components that contribute to the CPWC of all plans.
At the top of Table 8- 5, information about the addition of new renewable projects is listed. The project list for Scenario H includes the 10 MW local PV project added in 2021, the 60 MW PV project in 2026, and the 65 MW wind project added in 2034 ( all MW ratings are maximum plant output ratings, reductions are made to arrive at the firm ratings used in the capacity balance). The first year production and levelized cost of energy( LCOE) is also listed in this portion ofthe table.
Below the input section in Table 8- 5 are the yearly cost and revenue components that comprise the annual costs. The categories include supply costs related to self- generation plus power purchase costs ( from PPAs and the spot market) and wholesale sales revenue earned from sales into the market. The Total System Cost listed as a column heading includes the net cost once supply costs and wholesale sales are taken into account. Thus, in 2018, the Total System Cost is $ 35. 5 million.
Over time, the Total System Costs for each year trend upward, although there are years in which significant market revenues results in a decrease from the previous year ( see for example, the year 2031). In the final year of the planning horizon, the 2037 Total System Cost is projected to be$ 47.1 million.
To derive the CPWC of Scenario H, the Total System Cost for each year is discounted to 2018 at the assumed 2. 5 percent discount rate and summed. By the end of the planning horizon, the CPWC of Scenario H is$ 580. 966 million as seen in the bottom of the CPWC column in Table 8- 5 and as also reported in Table 8- 3.
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Section 8. 3 explained the development of the competing Scenarios considered and the rationale for selecting Scenario H as the preferred option. Some additional discussion of the Scenario H merits is provided in this section.
While the CEC Guidelines only require the future planning studies to extend to 2030, consideration of additional years beyond 2030 were encouraged. A 20- year plan that has the benefit of I v li.a Pir ri ri. i I r ; ial Y: a f..' 1
Packet Pg. 569 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric measuring the relative merits of various Scenarios beyond the next 12 years unti12030. While the 2037 difference in CPWC between Scenario H and the least cost option, Scenario D from Table 8- 3, is 2. 8 percent, at the 2030 mark,the difference is only 2. 1 percent and well within the range of uncertainty( while there is no definitive rule, in this analysis, CPWC results within no more than 2 to 3 percent are considered to be insignificant differences between plans). Thus, the CPWC results should be interpreted as showing that, while Scenario D is lower in absolute CPWC, the difference with Scenario H is on the margin of insignificance and while the CPWC is an important factor in plan selection, additional non- economic factors play a vital role in the selection ofthe preferred Scenario.
Scenario H is quite flexible in that, following the first resource addition in 2021 ( common to all plans), projects are layered in over a 20- year period, with the next project expected to be operational in 2026, which brings the following benefits:
The period between resource additions allows the continued assessment of industry events and system developments in order to adjust the specifics of Scenario H if conditions warrant;
It provides the ability to increase or decrease the size of the selected RE projects as necessary;
With the pliability this plan offers, staff can better match resources to comply with any future applicable in- state versus out- of-state requirements, such as those of the California Independent System Operator ( CAISO); and
The plan provides the ability to delay or accelerate the in- service date of the project based on a number of factors such as future legislation and market conditions Scenario D, however, offers less flexibility in that, beyond the 2021 solar addition that is also added in Scenario H, the plan consists of only one 85 MW wind addition in 2026. While economical to add this large wind project, the plan results in an unbalanced mix of solar and wind generation as indicated by the 84 percent wind and 6 percent solar mix of RE for Scenario D as indicated in Table 8- 3. It is important to achieve a balance in PV and wind resources over the planning horizon, since a balanced portfolio may reduce risks associated with over- reliance on a single technology. Also, a balanced wind and solar PV energy generation combination is deemed to be a better fit to the hourly system energy demand profile than a plan heavily weighted toward either wind or solar.
As noted earlier, due to reliance upon interaction with the power market, this analysis considers future interactions and estimates the costs and revenues associated with purchases from, or sales into, the market A plan that relies heavily on assumed market purchases or sales may incur risks associated with future power energy market prices increasing at a rate higher than assumed in the analysis if more heavily reliant on market purchases, or risks associated with future power energy market prices being lower than assumed in the analysis if more heavily reliant on market sales.
Therefore, to reduce the risk of higher retail rates associated with unexpected increases or decreases in future power energy market prices, plans with lower exposure to market volatility are preferable to plans with higher market purchases or sales, assuming others factors are equal.
Scenario H is also better than Scenario D with regards to the heavy reliance on wind and the end effects of ineeting future RE targets. Scenario D fails to meet the RPS requirements just beyond the planning horizon, ultimately requiring the procurement of an additional renewable project prior to the end of the planning window. For example, Scenario D relies on banked RECs during the last three years of the planning period and additional renewable resources would be required to I v li. a Pir ri ri. i I r ai. aPY a f..' 13
Packet Pg. 570 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric maintain RPS compliance after 2039. In contrast, Scenario H is above 50 percent in each of the final four years ( 2034- 2037) and meets ongoing RPS requirements in 2038 and beyond.
In summary, Scenario H is expected to have a slightly higher cost than Scenario D, however, it carries less exposure to extreme market conditions, brings less regulatory risk, provides better hourly production, and exhibits more resource diversity,thus meeting portfolio objectives.
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Packet Pg. 571 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric
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Packet Pg. 573 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric
8. 5 SENSITIVITY CASES
As discussed previously in Section 8, the PowerSimm Resources Planning Suite, developed by Ascend Analytics, was used to evaluate alternative resource additions to the portfolio that satisfy RPS requirements. PowerSimm employs a probabilistic approach in which the modeling results for a single Scenario include a range of possible outcomes based on agitations of input variables subject to uncertainty and for which correlated probability distributions are generated for the input. This method results in more than single deterministic output variables, but probability distributions on all the key output variables. This means that multiple, single variable sensitivity runs are not needed to understand the impact of uncertainty in one or more key input variables. For example, regarding fuel prices, the CPWC results reported in Figure 7- 2 are based on random expected draws offuel prices, correlated with random expected draws of other input variable, resulting in a 95 percent to 5 percent probability distribution range on the output variables. This means that fuel prices selected in the random expected draws are within a band expected to include the maximum fuel price 95 percent of the time and the low fuel price is not expected to go below the low fuel price more than 5 percent of the time. The results reported in this section are based on the mean results of all runs resulting from multiple draws on the stochastic input variables and simulated by the model.
8. 6 RETAIL RATES AND THE PREFERRED EXPANSION PLAN
Forecasts project power portfolio costs to increase by approximately$ 20 million ( nominal) from 2018- 2037, or 2. 25 percent annually( less than 1 percent when adjusted for inflation). Of this$ 20 million, approximately$ 15 million is due to the following power purchases related to environmental compliance:
60 MW share of Central Valley Solar beginning in 2026; despite the utility owning lower cost thermal generation, additional resources are required to meet state mandates. 65 MW share of Northern California/ Oregon Wind beginning in 2034 despite the utility owning lower cost thermal generation, additional resources are required to meet state mandates.
Due to forecasted retail sales in 2038 being within 3 percent of 2018 retail sales ( energy efficiency measures reducing base load growth), a$ 20 million increase in annual power portfolio costs represents an increase from today' s rates of approximately 15 percent, or less than 1 percent annually ( this is less than CPI). Due to the expected limited impact on rates from power supply costs over the forecast period, a separate report or study was not conducted. Any future update to COR' s IRP will continue to appropriately evaluate rate impacts related to power supply costs. While Power Supply is a significant portion of the utility's budget( see Figure 8- 6), it is not the only driver for rate changes. Other factors not included in this study such as debt service, personnel costs, maintaining the distribution system, and increasing reserves to manage financial risk associated with intermittent resources, will have significant impacts on the revenue requirement. In addition, while the 2018 Carr Fire had a substantial impact on the community, the COR had adequate reserves to fund infrastructure restoration efforts ( zero rate impact). Figure 8- 7 shows the projected portfolio cost of Scenario H and the level of retail sales through 2037.
I v li. a Pir ri ri. i I r ; ial Y: a f..' 17
Packet Pg. 574 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric r r
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Packet Pg. 575 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric
8. 7 THE PREFERRED PLAN IN CONSIDERATION OF FUTURE CONDITIONS AND RISKS
A number offactors could emerge in the energy industry, or in the economy, that could impose new conditions or risks not contemplated in this SB 350- based analysis. Some of these factors include new legislation and regulations that impact utility operation and could include the following:
SB 100 ( The 100 Percent Clean Energy Act of 2017) - SB 100 further modifies RPS requirements from 50 percent by 2030 ( set by SB 350) to 60 percent, and creates the policy of planning to meet all of the state' s retail electricity supply with a mix of RPSeligible and zero- carbon resources by December 31, 2045, thereby achieving a 100 percent clean energy supply.
On September 10, 2018, SB 100 was signed into law. COR anticipated that SB 100 would likely be signed by the Governor and as such, has begun some preliminary analysis on the potential impacts this law may have on RPS requirements into the planning horizon. The additional analyses, including detailed system modeling, is required to adequately evaluate all the potential impacts of the newly increased RPS obligations.
SB 100 accelerates the RPS obligations for retail sellers, including POUs as follows:
40 percent to 44 percent by 2024;
45 percent to 52 percent by 2027; and
50 percent to 60 percent by 2030.
The Bill also states that achieving this policy shall not increase carbon emissions elsewhere in the western grid and shall not involve resource shuffling. SB 100 also requires the CPUC, CEC, the CARB, and other state agencies to incorporate this policy into their regulations and decisions.
For the last several years, COR' s approach to RPS requirements ( changes/ increases in those requirements) has been to evaluate resources into the future to ensure compliance obligations are fully met. SB 100 carries with it a new level of RPS requirements of over 50 percent by 2030 which presents a more complex balancing of the power supply mix than what COR has considered in the past. SB 100 becomes effective in January 2019 and with that, regular updates to the modeling that supports the power supply strategy will continue and will fully integrate the requirements of SB 100 within that process in 2019 and beyond.
JJJJ: AB 813 ( Electric Regionalization) - The bill would open the door for the CAISO to expand its membership to include other balancing authorities across the 14 western states. This regionalization bill would require approval from the state before any California transmission owner, retail seller, or local publicly- owned utility joins a multistate regional transmission system organization. Bill proponents believe regionalization would reduce rates and costs, ensure consistent reporting and tracking of RE targets and achievements, and reduce transmission rates. Opponents believe that the bill would harm the independence of state policy including the progress made in California toward its RE standards, which are generally more aggressive than in other states.
I v li. a Pir ri ri. i I r ; ial Y: a f.. ld
Packet Pg. 576 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SB 1110 (Safeguarding Public iJtility Ratepayers from Bond Debt authored by Senator Bradford) - This bill protects COR from construction debt of power plants built in the early 2000' s in response to the energy crisis. In the early 2000' s— when many California cities were struggling with how to serve their communities with electricity and experiencing brown outs— Council, with decisive action, approved the speedy construction and operation of the state- of-the- art low emission, gas- fired generation that COR now owns. This action brought safety in delivering electricity, increased reliability, and an enhancement to the local economy with approximately 25 full-time positions earning favorable wages.
With construction ofthese safe, efficient, and reliable power generating facilities, debt was incurred. Currently, bond indebtedness is approximately$ 106 million dollars; which is scheduled to be paid in full by 2030.
SB 1110 was signed into law on September 20, 2018, providing protection of resource investments as our state traverses the path of 100 percent RE mandates by the 2040' s, and would allow the continued operation of these reliable and efficient facilities at a level that would allow us to finish paying for our assets without causing financial harm to our community.
Each of these laws or regulations could impact the decision process, as could economic growth that is significantly higher or lower than anticipated in this IRP. In anticipation of possible changes in future conditions and risks, the IRP has been developed such that it affords flexibility, balance, and margin. The recommended plan does not require an immediate commitment to projects needed well into the planning horizon. In fact, following the 2021 planned addition of the 10 MW Solar Project, incremental RPS resources are not projected to be added until sometime after 2023. The renewable projects under consideration can be developed in a relatively short time; as a result, COR can confirm that future developments identified in this IRP remain beneficial prior to making a firm commitment to these projects.
The recommended Scenario H is balanced in that it mixes solar and wind RE resources better than other Scenarios considered. This is important because, while the economic analysis did incorporate a probability analysis of possible production profiles for these two technologies, there are also nonquantifiable risks that suggest a balanced RE portfolio may help to mitigate future uncertainties.
This could include, for example, the possibility of opposition to a renewable technology in the future, that new incentives, taxes, or operational charges ( such as integration costs) could materialize and favor one technology over the other. By planning for a balanced portfolio, Scenario H is a way to protect against unforeseen developments that could favor wind over solar, or vice versa.
Finally, the recommended Scenario H provides margin in the sense that, as seen in Figure 8- 3, the plan will produce more than the minimum RE required to meet the existing RPS targets. This margin provides a risk reduction benefit should SB 100, or another law or regulation, require a more aggressive pursuit of RE.
I v li. a Pir ri ri. i I r ai. al Y: a f..
Packet Pg. 577 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric
8. 8 THE PREFERRED PLAN WITH CONSIDERATION OF LOCALIZED AIR
POLLUTANTS AND DISADVANTAGED COMMUNITIES
COR is not aware of any officially designated disadvantaged communities in its service territory.
Nevertheless, there are many areas served that are considered low income. To help serve the needs of low- income groups, the following strategies are utilized to maximize education and participation of low-income customers in the Low-Income Energy Efficiency Program ( LIEEP) program.
Program policies are specifically designed to facilitate coordination with the PG& E Energy Savings Assistance Program and with the California Department of Community Services and Development' s CSD) Weatherization Program. For example, CSD measure feasibility guidelines and installation standards have been adopted, and adopted PG& E ESA and CSD program participation as a categorical qualifier for the LIEEP Program. This seamless integration minimizes duplicative efforts, maximizes return on program marketing efforts, and delivers maximum benefits to our income- qualified customers.
The local non- profit weatherization provider who implements the PG& E ESA Program and CSD programs in Shasta County, also handles implementation of LIEEP.
COR partners with multiple mission driven, non- profit organizations to market the suite of resources available to income qualified customers including weatherization, a rate discount program, and an emergency bill assistance program.
Continuation of these programs, or similar programs and efforts, is anticipated to continue as a means to educate and assist low-income customers in the future. The preferred Scenario H is deemed to be in the interest of low- income customers, and all other customers, in that it achieves a balance between affordability( having a CPWC less than 3 percent higher than the lowest cost Scenario) and environmental benefits ( meeting 2030 RPS requirements and within the GHG limits recommended by CARB staff).
I v li. a Pir ri ri. i I r ; ial Y: a f.. 1
Packet Pg. 578 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric i
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This Report discussed the development of the IRP and presented the results. The IRP was developed to benefit and create value for customers and to deliver exceptional services through the strength and dedication of its employees. This overriding objective is achieved by providing reliable and safe service at low( cost- conscious) rates, while complying with environmental mandates and objectives.
The development of the IRP took over one year and was the result of collaborative efforts by COR staff, Black& Veatch, Itron, Ascend Analytics, and Stakeholders. Customers had important input and played a vital role in the planning process. As a result, the recommended Scenario is considered to be a plan that balances many different views and perspectives, and is also a robust plan that will provide low costs, flexibility, environmental compliance, and manageable risks over the 2018- 2037 planning period. This Report is designed to be a guiding document, not a procurement plan.
The recommended Scenario is identified in this report as Scenario H. This plan features the addition of the 10 MW( maximum rating, not firm) local Solar Project in 2021, followed by an additiona160 MW of solar capacity in 2026, and a 65 MW wind facility in 2034. This plan is low cost— within 2. 8 percent of the lowest overall plan on a cumulative basis but within 2. 1 percent through 2030; it allows the flexibility to adjust the size and timings of the 2026 and 2034 resource additions as conditions warrant; it is compliant with the targets for RE ( 50 percent in 2030 and all intermediate targets), 2030 GHG emissions proposed in the summer of 2018 by CARB; and the plan assumes continued investment in energy efficiency and demand reduction programs.
All of these objectives are met while also providing a reliable power plan that meets the planning reserve requirements. The details of Scenario H are presented in the discussion and accompanying tables and figures in Section 8. The four tables required in the CEC Guidelines are provided in Appendix A. These tables support the conclusion that Scenario H is a viable plan that meets the POU objectives and requirements for an IRP.
This IRP will be updated as conditions warrant, most likely every two to three years but, in any case, no longer than the five year limit established in the CEC Guidelines. Given the relatively short lead time for RE resources and the dynamics of the power sector, future IRP updates will be able to adjust to changing conditions as needed and will help ensure that the resource plan continues to serve the needs of its valued customers.
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The CEC Guidelines require four standardized tables to be part ofthe IRP Filing. The standardized tables presented in this Appendix for the recommended Scenario H are as follows:
Administrative Information: Summary of contact information for persons who prepared standardized tables
Capacity Resource Accounting Table ( CRAT): Annual peak capacity demand in each year and the contribution of each energy resource ( capacity) in the POU' s portfolio to meet that demand.
Energy Balance Table ( EBT): Annual total energy demand and annual estimates for energy supply from various resources.
RPS Procurement Table ( RPT): A detailed summary of a POU resource plan to meet the RPS requirements.
GHG Emissions Accounting Table ( GEAT): Annual GHG emissions associated with each resource in the POU' s portfolio to demonstrate. 16
16 page A- 4
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Black& Veatch completed a stochastic analysis of COR' s load and generation to estimate the 95 percent confidence interval of the deviation of actual hourly load less generation ( Net Load) compared to scheduled hourly Net Load. In the analysis, Black& Veatch also included a case where a 10 MW fixed tilt Solar Project( Solar Project) was included in COR' s Net Load.
The stochastic analysis was completed utilizing Palisade Corporation' s @RISK software; @Risk is a Microsoft Excel add- in which completes stochastic analyses similar to Crystal Ball. The 95 percent confidence intervals with and without the Solar Project were compared to assess if the addition of the Solar Project significantly increased the confidence interval. The key data and assumptions used in the analysis are summarized below.
Five minute load and generation data for 2014 through 2017 was utilized for the analysis The analysis was completed on a monthly basis to consider seasonality of load and generation
Five minute load data was assumed to follow a normal distribution utilizing the historical mean and standard deviation for 2014 through 2017
Five minute generation data was assumed to follow a log normal distribution utilizing the historical mean and standard deviation for 2014 through 2017 The generation from the Solar Project from 2014 through 2017 was estimated using US Climate Reference Network( CRN) data for a site located 20 miles NW of Redding Airport applied in a NREL Solar Advisor Model ( SAM) simulation of a 10 MW fixed tilt Solar Project Scheduled load and generation for each five minute period was assumed to be the historical mean for 2014 through 2017
Actual load and generation in each five minute period was estimated stochastically using the distributions defined
Deviation from schedule on a five minute basis was calculated as the difference between the actual Net Load and scheduled Net Load; actual Net Load greater than scheduled yielded a positive value, actual load less than scheduled yielded a negative value The hourly deviation from schedule was calculated as the average of the five minute values The stochastic analysis estimated 95 percent confidence intervals for hourly load deviation and hourly load less generation for each month
Further information on the development of the generation data for the Solar Project is included in Attachment A.
Figure C- 1 and Figure C- 2 below illustrate typical5 minute input distributions for the COR load and generation; the January 7 a.m. three minute load and generation input distributions without the additional of the generation from the Solar Project have been included.
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Figure C- 3 January 7 a. m. Load less Generation Deviation from Schedule In comparing the stochastic Net Load deviation from schedule with and without the addition of the Solar Project, in general Black& Veatch found that there was very limited difference between the 95% confidence intervals for each case. Figure C- 4 compares the 95% confidence intervals for Net Load with and with and without inclusion of the Solar Project in July; this month was selected as it is a period of high solar generation where it would be expected that the addition of solar would have more influence on the Net Load deviation from schedule.
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Black& Veatch suggests that a next step could be to schedule a call to discuss the results above and any further analysis which COR would like to complete. Some further analysis which could be completed could include:
Estimating the impact of increasing solar capacity( e. g. in 10 MW increments) to the results above.
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INTRODUCTION
Black& Veatch developed a representative historical solar energy production profile for a 10 MW PV plant located in Redding, CA. The historical production was simulated at a sub- hourly level with 5- min time steps for the period of 2014- 2017.
SOLAR RESOURCE ASSESSMENT
The historical ground solar resource data accessed in this study is from the US Climate Reference Network( CRN) site located near Redding, CA. The CRN station location is located 20 miles NW of Redding Airport( representative project location) at an elevation of approximately 1440 feet. The US CRN sites measure high quality observations of several meteorological parameters including solar radiation, ambient temperature, wind speed, precipitation etc., at 5- minute intervals. The measured data has been processed for any errors and the quality controlled data was used for the purposes of this study.
USCRN DATA OBSERVATION AND CORRECTIONS
Due to the high elevation of the Redding USCRN location, measured data obtained was reviewed to ensure its compatibility for robust solar energy simulation use. To assess the suitability of solar irradiance data from the CRN location, Black& Veatch compared long term satellite based GHI irradiance for Redding Airport site against the GHI obtained from US CRN site. Long- term trends appeared to be very similar at both these locations. Based on our review ofthe Redding CRN data the following trends were observed,
A slightly lower GHI was observed at the CRN site due to more frequent cloud formation associated with closer proximity to the Klamath Mountain range.
There appeared to be sensor shading due to the Klamath Mountains to the west of the station location and can be noticed on a clear day during late summer afternoons.
Therefore, any drop in the simulated production during late afternoon can be attributed to this shading effect in the input irradiance profile and should be taken into consideration when comparing late afternoon PV energy production with coincidental system load data.
This dataset from the CRN site was selected as a representative solar resource dataset due to overall high quality, high temporal resolution and proximity of the location of interest. Additionally, to represent the temperature profile accurately at the airport location an altitude temperature correction of+ 1. 5° C has been applied to the Redding CRN air temperature data to correct for the altitude difference between the Redding CRN and airport site ( approximately 1000 ft. altitude difference). No corrections have been applied to the CRN irradiance or wind speed data.
SOLAR PV PRODUCTION MODELING
Black& Veatch used NREL System Advisor Model to simulate the energy production of a 10 MW Solar Project. The system design information assumed during this simulation process is shown in the table below. All the system DC and AC loss assumptions were selected such that it represents a 10 MW ground mount utility- scale project.
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System DC Capacity( kWac) 10, 000
DC/ AC Ratio 1. 3
Mounting Type Fixed— Tilt 30° facing south
Ground- Coverage Ratio 33%
Module Type Crystalline— Silicon ( 335 W)
InverterType Central Inverters 2000 kW
Based on the analysis, Black& Veatch infers the following:
The output energy production appears to capture the solar resource variability at the subhourly level.
The output energy production profile does not capture the spatial variability across the entire PV array, and therefore assumes generation to be a point source. This variability however tends to smoothen out as the PV array size increases.
Due to high temporal resolution of the input temperature profile, high frequency production variation is noticed around solar noon during certain clear sky days. This variation however has very less magnitude and in fact cannot be noticed during the days when project is clipping. This high frequency spikes in production can also be seen in actual production data at sub- hourly level, but this effect is dampened to uneven spatial temperature distribution across the array and data averaging at the meter.
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The stochastic model results comparing the 95% confidence intervals for Net Load with and with and without inclusion of the Solar Project for each month are summarized in the figures below.
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FORWARD PRICING
PowerSimm simultaneously simulates multiple strips of forward curves into the future where parameters for the stochastic processes and the covariate factors are estimated from historic data.
PowerSimm builds a system of simultaneous equations that captures the stochastic component of each individual forward contract and the covariate relationship between neighboring contract months, other commodities, and other factors ( such as interest rates and exchange rates). The state-space modeling framework satisfies the criteria for developing a Cash Flow at Risk solution by producing simulations of prices that are realistic, benchmark well to historic data, and produce a payoff of cash flows consistent with market option quotes at multiple strike prices. The consistency of simulated prices with market expectations remains the principal benchmark criteria for forward market simulations.
Forward contracts may have institutionally determined and specified drift terms. The drift term is a percent change from the current forward price to the final evolved forward price. For example, a forward contract with a current price of$ 50 and a drift of 10% would have a final evolved price of
55. As a base simulation assumption, PowerSimm creates convergence between the initial forward price and the final forward price. This is the equivalent of a zero drift term. Even with a very limited number of assumptions the convergence criteria of Fo= FT will be satisfied.
The process flow for forward price simulation is shown in Figure D- 1. mawvard, P' ae S raae a m
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PowerSimm requires a history of forward price quotes for each delivery month to simulate market prices into the future. A minimum of 30 transaction dates for each delivery date is required for forward curve simulation.
PowerSimm has the ability to weight the historic data used in the parameter estimation process to give more weight to more recent events or reduce the impact of outlier events. The default historic weighting formula for forward market data used for parameter estimation follows a linearly declining function. It provides a weight of 1095 for the most recent observation, 1094 for the second most recent, and so on, until it reaches a value of 365 ( which corresponds to three years).
All historic quotes older than three years old receive a value of 365. Thus, yesterday' s quote receives three times the weight in the parameter estimation process as a value that is three years old.
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Output from the forward price simulation consists of fully evolved forward prices for each forward curve, simulation repetition, and delivery date in the study. The mean forward price for each delivery date is scaled to match the most recent available market forward curve data as of the run time of the study.
SPOT ELECTRIC PRICES
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The application ofthe fundamental drivers of electricity has influence on the daily and hourly formation of prices.
Regional electricity prices are primarily a function of daily gas prices and daily reserve margins as shown in Figure D- 9. Each variable explains about 50% of the variability in prices and jointly they explain about 90% of the variability. The split regression of Figure D- 9 contains a relatively modest amount of noise in the electricity price of+- $ 5/ MWh when reserves are greater than 15%. When daily reserves are less than 6 percent,the unexplained noise" switches" to a higher regime and captures uncertainty in prices of+- $ 40/ MWh. High electricity prices can also be caused by spikes in daily gas prices. The spikes in daily gas price carry a direct linear relationship to electricity prices. The joint relationship between high gas prices and low reserve margins follows from regional analysis.
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1. Simulation of the uncertainty in the parameter estimates and the covariate relationship of uncertainty in the parameter estimate;
2. Simulation of the exogenous variable through a series of simultaneous vector autoregressive equations;
3. Simulation of residual error.
Variables describing the supply stack, such as the percentage of gas fired generation were determined to be statistically insignificant and were removed from the model.
The simulated values for price are conditional upon the path- dependent weather and load simulations. The mean or median of the realized daily on- peak and off-peak spot prices are bucketed into monthly time steps and scaled so that the mean is equal to the monthly forward price.
Spot electric prices are typically simulated once a week, as new utility and system load values become available. The job management system oversees the appropriate execution of the simulations by way of the Process Flow Editor in the PowerSimm UI.
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The process flow for simulation of electric market prices is shown in Figure D- 3. The triangles on the left of the figure represent the historic data from which relationships between fundamental variables and electricity prices are determined. The linked simulations of each predictive variable are shown in the rectangular boxes to the right ofthe triangular inputs. Explanatory variables are linked to electricity prices through a structural state space model.
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The input data consists of the following:
Historic hourly load data
Historic hourly or daily hydro generation
Daily gas prices
Transmission imports and exports ( optional)
Daily reserve margins ( optional)
Supply stack characteristics ( optional)
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The default function for the weighting of historic spot market data used for parameter estimation is flat weighting( all historical data is weighted equally). Alternatively, the historical spot prices can be weighted according to a linearly declining function. This weighting system provides an initial weight for the most recent input spot prices of 730 and 729 for the two-day-old prices. The weights decline daily under the same pattern for two years until they reach a value of 365. All historic quotes older than two years receive a value of 365. Thus, yesterday' s quote receives twice the weight in the parameter estimation process as a value that is two years old. Users can adjust the default weighting formula through the UI
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The hourly spot price simulation produces daily on- peak and off-peak electric prices and hourly spot electric prices. The prices that are output are scaled to the final evolved forward prices from the corresponding forward price simulation module. More specifically, the average monthly spot price by peak period will be equal to the market forward price as of the scheduled run time of the study in which the forward price simulation was run.
SPOT GAS PRICES
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Developing accurate spot gas price simulations is critical for determining the cost of service, risks, and hedging strategies. A simulation approach is advantageous where a specified number of likely events ( realizations) can be used in conjunction with exogenous system shocks such as extreme weather events. The combination of market electric prices and spot gas prices is critical to accurately capturing the cost of generation and driving dispatch of generation assets. For each portfolio in PowerSimm, there will be only one central gas delivery point. The other points will be treated as basis points from the delivery point. In most cases, this construct will lead to Henry Hub as the central gas delivery point.
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ii a ii ii iK a ll lll ai d iiiiii^ d ] Il ii ,, d^° a ii ii lk m ll i. lk aill, The generation of new spot prices is run approximately once every month or quarter as new utility and system hydro data becomes available. The Job Management system oversees the appropriate execution ofthe simulations and provides users with summary statistics based on the last updated input data.
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The process flow for gas price simulation is shown below in Figure D- 4.
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Figure D- 4 Spot Gas Price Process Flow
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Estimation of the parameters to simulated spot gas prices utilizes input of historical gas spot prices, weather, and daily on-peak and off-peak electric prices. The simulated weather is input into the model on a simulation basis.
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The output data is identical to the daily historic input dataset except that it includes the requested number of spot price simulations for the requested simulation length. This dataset also includes the simulation date and time update along with a link table to describe the parameters used to run the simulation.
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The historic spot market data used for parameter estimation follows a linearly declining function.
The weighting system for market data provides an initial weight for the most recent input spot prices of 730 and 729 for the two- day-old prices. The weights decline daily under the same pattern for three years until they reach a value of 365. All historic quotes older than two years receive a value of 365. Thus, yesterday' s quote receives twice the weight in the parameter estimation process as a value that is two years old. Users can adjust the default weighting formula to their own weighting function through the UI.
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SimEngine produces daily spot gas price simulations over the forecast horizon. The summary statistics can be viewed in the standard output reports, which focus on the mean, 5th, and 95th percentile simulation results.
LMP & BASIS PRICE SIMULATION
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LMP hourly prices and spot gas basis prices share the same simulation structure. Prices are measured in terms of the difference from a central hub. By treating LMP prices as basis prices, we focus on capturing the uncertainty in basis prices between the delivery point and the hub price while maintaining the same correlation between nodal points and the central hub. Simulation of basis addresses market conditions where historic data exists to support estimation of time series relationships. For markets with historic data, it is important to preserve the time series relationships between structural variables such as system load and spot prices.
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ii a ii ii iK a ll lll ai d iiiiii^ d ] Il ii ,, d^° a ii ii lk m ll i. lk aill, Approximately once every month or quarter, generation of new basis prices is run as new utility and system hydro data becomes available. The job management system oversees the appropriate execution of the simulations to provide users with summary statistics based on the last updated input data.
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Simulation of spot gas prices requires input of historical gas spot prices and daily on- peak and offpeak electric prices. ai 71 ai lll a aa
The output data is identical to the daily historic input dataset except that it includes the requested number of basis simulations for the requested simulation length. This dataset also includes the simulation date and time update along with a link table to describe the parameters used to run the simulation.
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Gas Basis and Daily Electric Prices
Daily gas prices are linked to daily electric on- peak and off-peak prices through the residual error structure.
Hourly Electric Basis
The simulation of hourly electric basis prices follows the following time series model structure where each hour has its own equation.
Hour1 = Lag1( Hour24) + OffPeakPrice + OnPeakPrice + DayOfWeek+ MA1 + error Hour2 = Hour1 + OffPeakPrice + OnPeakPrice + DayOfWeek+ MA1 + error Hour3 = Hour2 + OffPeakPrice + OnPeakPrice + DayOfWeek+ MA1 + error Hour4 = Hour3 + OffPeakPrice + OnPeakPrice + DayOfWeek+ MA1 + error HourS = Hour4 + OffPeakPrice + OnPeakPrice + DayOfWeek+ MA1 + error Hour24 = Hour23 + OffPeakPrice + OnPeakPrice+ DayOfWeek+ MA1 + errorand similarly for OffPeakPrice.
Hour1 + Hour2 + Hour3 + Hour4+ HourS + Hour6 + Hour23 + Hour24 = OffPeakPrice The series of equations for hourly spot prices are estimated with different parameters for each month to capture seasonal effects.
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The default weighting of historic spot market data used for parameter estimation follows a linearly declining function. The default weighting system for market data provides an initial weight for the most recent input spot prices of 730 and 729 for the two-day-old prices. The weights decline daily under the same pattern for three years until they reach a value of 365. All historic quotes older than two years receive a value of 365. Thus, yesterday' s quote receives twice the weight in the parameter estimation process as a value that is two years old. Users can adjust the default weighting formula to their own weighting function through the UI. h° Il: a u . uu a lll,.{ a iiii ii i° ii. ik ii.
SimEngine produces basis price simulations over the forecast horizon. The summary statistics can be viewed in the standard output reports, which focus on the mean, 5th, and 95th percentile simulation results.
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POWERSIMM PLANNER - SIMULATION TO CAPTURE MEANINGFUL
UNCERTAINTY
PowerSimm is a dispatch optimization and production cost tool. The tool is comprised of two major elements, the Sim Engine and Dispatch Optimization, that work together to systematically bridge the physical and financial dimensions of electricity provision. PowerSimm uses a simulation-based approach to perform decision analysis for portfolio risk management and considers the volatility in important variables such as load, fuel price, power price, weather, renewable generation, load and system constraints, and outages.
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Figure D- 6 PowerSimm' s Sim Engine captures" Meaningful Uncertainty" in weather,( oad, renewables, and prices
The simulation of uncertainty with respect to weather is becoming ever more critical because weather conditions can be thought of as a new vital parameter in California' s emerging highrenewables system. To capture the changing market dynamics with renewables, PowerSimm simulates weather conditions to capture the effect on renewable output and its effect on energy price formation. This is part ofthe process of characterizing meaningful uncertainty by considering realistic paths of weather that, in turn, drives renewable production, market prices, and net utility loads.
PowerSimm is a stochastic construct model and each expansion plan simulation actually includes 100 or more simulations that allow all possible future states specified through ( appropriately correlated) model inputs and forecasts to be considered probabilistically. Figure D- 7 demonstrates the value of PowerSimm' s stochastic approach. The orange line represents the result of a single deterministic ( non- probabilistic) run that would have been calculated based on single values for model inputs such as load and market price. Conversely, using the probabilistic approach, PowerSimm models multiple possible outcomes stochastically, as represented by the blue bar plots in Figure D- 7, and characterizes a full distribution of possible outcomes of portfolio cost. This enables the determination of the most likely cost( black bar in the figure representing the mean results) associated with the input variables and forecasts. PowerSimm can make resource I h[ Y' ti4° II il u,; Vd u I IdI, P' dllAllru uoa'alu li LS. d Packet Pg. 609 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric decisions based not only on the mean of the distribution, but also by risk considerations informed by the 5th and 95th percentiles. Therefore, the model can solve for the optimal resource portfolio that strikes the best balance between cost and risk.
Using the probabilistic approach, the modeling results for a single run produce a range of possible outcomes for variables subject to uncertainty and for which a probability profile is entered. This means that multiple, single variable sensitivity runs need not be performed to understand the impact of uncertainty in one or more variables. For the simulations, a single cost result was generated for each ofthe Scenarios evaluated, and no additional sensitivity analyses were performed as is typically done in deterministic modeling approaches. q i . , , . ,;; ; St cP s c s t. a e r r
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mw°°Figure D- 7The Value ofStochastic Analysis in Resource Planning IIIU^°iiik ii a lll, ii^° lk lll ii . ii k° iiii aiii i° ii ° ii lll,. d aiii ] Il. ii^° ik ii ii l lli a ll iiii ii"PowerSimm also identifies the risk associated with each energy portfolio option, quantifying this as the "risk premium."Sincedifferent energy portfolios havedifferent simulated cost distributions, the risk premium will be larger for wider cost distributions, orriskier portfolios, and smaller for narrower cost distributions, or less risky portfolios. Ascend then adds the risk premium variable totheexpected value toput all energy portfolio options on the same playing field.Thefactors that drive risk in total portfolio cost include fuel price risk,carbon price risk, and other influential inputs that face
uncertainty. The risk premium is defined as the probability- weighted average of costs above the median, and this concept is illustrated below in Figure D8: I h[ Y' ti4° II il. u„Vd u I IdI, P' dllAllru uoa' alu li LS' Packet Pg. 610 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric b
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PowerSimm planner monetizes risk through applying an actuarial option approach where the value of risk( the risk premium) is calculated as the integral of the cost distribution from the mean to the upper tail of costs, reflecting the downside risk to ratepayers. The underlying cost distribution follows from production cost modeling determined through input simulations of market fuel prices and weather->load-> renewables. These underlying simulations are developed to satisfy a long set of validation criteria to ensure" meaningful" uncertainty is reflected in the final distribution of costs.
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Date:
RPS- 001 3
06/ 05/ 18 RPS PoI i ci es &
Effective Date: June 5, 201 Proced u res
Document Owner: Nick Zettel
Resources Division
RPS- 001 Renewables Portfolio
Standard Procu rement and
Enforcement Plan
Reviewed By:
Nick Zettel ( Electric Manager— Resources), Bill Hughes ( Electric Manager— Resources), Dan Beans ( Electric Utility Director) Adopted By: Redding City Council
Date: June 5, 2018
e ldiir g Ele c ric Utility
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TABLE OF CONTENTS
1. Introduction......................................................................................................... 3
1. 1 Utility Code ................................................................................................ 3
2. RPS Procurement Plan ...................................................................................... 3
2. 1 Purpose ..................................................................................................... 3
2. 2 Compliance Periods and Procurement Targets ......................................... 4
2. 3 Portfolio Content Categories...................................................................... 5 A. PCC1: ( RPS Enforcement Regulations 3203( a)) ........................... 5 B. PCC2: ( RPS Enforcement Regulations Section 3203( b)) .............. 6 C. PCC3: ( RPS Enforcement Regulations section 3203( c)) ............... 7 D. PCCO: ( RPS Enforcement Regulations section 3204( a)( 2))........... 7
2. 4 Redding' s Plan for RPS Compliance ......................................................... 8
2. 4. 1 Existing Eligible Renewable Resources.......................................... 8
2. 4. 2 Procurement Plan for Future Renewable Resources...................... 8
3. RPS Enforcement Program ............................................................................... 9
3. 1 Enforcement Policy.................................................................................... 9
3. 2 Optional Compliance Measures............................................................... 10 A. Excess Procurement: .................................................................... 10 B. Delay of Timely Compliance: ........................................................ 10 C. Cost Limitations for Expenditures:................................................. 10 D. Portfolio Balance Requirement Reduction: ................................... 11
4. Review and Updating Requirements .............................................................. 11
5. Review and Revision History .......................................................................... 12 o vl hll u°" olli::.u; I Idu dl 4, l rl ru. u• oaVu IE4: E..
Packet Pg. 613 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric 1 . Introduction
Senate Bill 2 in the First Extraordinary Session ( SBX1- 2) defines the California Renewables Portfolio Standard ( RPS) and imposes minimum renewable energy procurement targets for all retail sellers and publicly- owned utilities ( POUs), including the City of Redding ( Redding).
SBX1- 2 authorized the California Energy Commission ( CEC) to develop procedures for enforcement of the RPS for POUs. As part of that enforcement authority, the CEC adopted Enforcement Procedures for the Renewables Portfolio Standard for Local, Publicly-Owned Electric Utilities" ( RPS Enforcement Regulations).$ This document describes Redding' s RPS Procurement and Enforcement Plan, as required by the Public Utility Code, which must be approved by Redding' s City Council.
1. 1 Uti I ity Code
REU must comply with many state laws that govern certain aspects of utility operations. These include the following code sections, which relate to California' s Renewable Portfolio Standard:
Renewable Portfolio Standard requirement Public Utilities Code ( PUC) § 399. 30( a)( 1) Compliance Period and Procurement Targets PUC § 399. 30( b) and ( c) Portfolio Content Categories PUC § 399. 16( b) and ( c) RPS POU Compliance PUC § 399. 30( n)
Optional Compliance Measures PUC § 399. 30( d)
2. RPS Procurement Plan
2. 1 Purpose
The purpose of the RPS Procurement Plan is to identify the policies and procedures for Redding to meet the RPS requirements and any future adopted state-defined renewable goals.
The most recent adoption, SB350, mandates that 50 percent of retail sales must be created by eligible renewable energy sources by 2030. SB350 also requires Redding to produce an Integrated Resource Plan that will guide the Procurement Plan. 17 SBX1- 2 ( Simitian, Stats. 2011, Ch. 1) was signed by California' s Governor on April 12, 2011, and made significant revisions to Public Utilities Code § s 399. 11- 399. 32, the California Renewables Portfolio Standard Program. Various provisions of§ 399. 11, etseq., were subsequently modified.
18 The CEC adopted the RPS Enforcement Regulations on June 12, 2013, in Order No. 13- 0612- 5. o vl h I I 9° II if':.u; I I d V dl 4, IIAIIru. u oaVu IEIC E 3 Packet Pg. 614 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric
2. 2 Compliance Periods and Procurement Targets
Compliance periods are multiyear, required targets. Although Compliance Periods 1 and 2 have passed, they are included below for reference:
A. Compliance Period 1
1) During Compliance Period 1, January 1, 2011, to December 31, 2013, Redding shall procure, at a minimum, renewable energy resources equivalent to an average of 20 percent of retail sales over the three ( 3) years of the compliance period.
Expressed as:
10.0 EP2011 + EP2012 + EP2013>_ .20( RS2011 + RS2012 + RS2013) Where:
RS X = total retail sales made by POU for the specified year X.
EP X = electricity products procured for the specified year X; this may include excess procurement and historic carryover that the POU has chosen to apply to the compliance period containing year X.
B. Compliance Period 2
1) For Compliance Period 2, January 1, 2014, to December 31, 2016, Redding shall procure renewable energy resources to meet or exceed the sum of 20 percent of retail sales for each of 2014 and 2015, and 25 percent of retail sales for 2016.
Expressed as:
11. 0 EP 2014 + EP 2015 + EP 2016 >_ 0.20(RS 2014) + 0. 20 ( RS 2015) +
0. 25 ( RS 2016)
C. Compliance Period 3
1) For Compliance Period 3, January 1, 2017, to December 31, 2020, Redding shall procure renewable energy resources to meet or exceed 33 percent of retail sales by 2020. During the intervening years of Compliance Period 3, Redding shall increase procurement to reflect an imputed compliance obligation.
Expressed as:
EP2017 + EP2018 + EP2019 + EP2020)
0.27 ( RS2017) + 0. 29 ( RS2018) + 0.31 ( RS2019) + 0.33 ( RS2020) D. Compliance Periods beyond 2020
1) Compliance periods beyond 2020 are not formally established; however, SB350 requires a 50 percent renewable standard by 2030.
The following table summarizes the annual " soft" targets, but compliance is determined over the entire compliance period using the formulas above.
Com liance Period 3
2017 2018 2019 2020 2030
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Table 1: I F'Sl enewablel equirement
2. 3 Portfolio Content Categories
In addition to meeting the renewable energy procurement target, the RPS established Portfolio Content Categories ( PCC) that outline the eligible renewable energy resource products that must be procured to ensure compliance with minimum and maximum values as summarized in Table 2.
A. PCC1: ( RPS Enforcement Regulations 3203( a))
1) PCC1 electricity products must be bundled at the time of procurement to be classified as PCC1, and the POU may not resell the underlying electricity from the electricity product back to the eligible renewable energy resource from which the electricity product was procured. The electricity products must be generated by an eligible renewable energy resource that is interconnected to a transmission network within the Western Electricity Coordinating Council ( WECC) service territory. For purposes of this section 3203, the first point of interconnection to the WECC transmission grid is the substation, or other facility, where generation tie lines interconnect from the eligible renewable energy resource to the network transmission grid.
a) Electricity products must be generated by an eligible renewable energy resource that has its first point of interconnection within the metered boundaries of a California balancing authority area.
b) Electricity products must be generated by an eligible renewable energy resource that has its first point of interconnection to an electricity distribution system used to serve end- users within the metered boundaries of a California balancing authority area. For purposes of this section 3203, the first point of interconnection to an electricity distribution system is within the service area boundaries of a utility distribution company.
c) Electricity products from the eligible renewable energy resource with a first point of interconnection outside the metered boundaries of a California balancing authority area must be scheduled into a California balancing authority area without substituting electricity from another source. For purposes of this section 3203, electricity generated by the eligible renewable energy resource must be scheduled into a California balancing authority area on an hourly or sub- hourly basis. The POU' s governing board, or other authority as delegated by the POU governing board, must have approved an agreement before the electricity is generated to schedule the electricity from the eligible renewable energy resource into the California balancing authority area on an hourly or sub- hourly basis. If there is a difference between the amount of electricity generated within an hour and the amount of electricity scheduled into a California balancing authority area within that same hour, only the lesser of the two amounts shall be classified as PCC1.
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3) Electricity products originally qualifying in PCC1 that do not meet the criteria of section 3203 ( a)( 2)( A) and are resold — ( D) shall not be counted in PCC1.
B. PCC2: ( RPS Enforcement Regulations Section 3203(b)) 1) PCC2 electricity products must be generated by an eligible renewable energy resource that is interconnected to a transmission network within the WECC service territory, and the electricity must be matched with incremental electricity that is scheduled into a California balancing authority area.
2) PCC2 electricity products must be bundled when procured and must meet all of the following criteria:
a) The first point of interconnection to the WECC transmission grid for both the eligible renewable energy resource and the resource providing the incremental electricity must be located outside the metered boundaries of a California balancing authority area.
b) The incremental electricity used to match the electricity from the eligible renewable energy resource must be incremental to the POU. For purposes of this section 3203, " incremental electricity" means electricity that is generated by a resource located outside the metered boundaries of a California balancing authority area; prior to the date of contract or ownership agreement, electricity is not in the portfolio of the POU claiming the electricity products for RPS compliance from eligible renewable energy resources with which the incremental electricity is being matched; is executed by the POU, or other authority, as delegated by the POU governing board.
c) The governing board, or other authority as delegated by the governing board, executes the contract or ownership agreement for the incremental electricity at the same time or after the contract or ownership agreement for the electricity products from the eligible renewable energy resource is executed. d) The incremental electricity must be scheduled into the California balancing authority area within the same calendar year as the electricity from the eligible renewable energy resource is generated.
e) The electricity from the eligible renewable energy resource must be available to be procured by the POU and may not be sold back to that resource.
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D. PCCO: ( RPS Enforcement Regulations section 3204( a)( 2)) 1) Any contract or ownership agreement originally executed prior to June 1, 2010, shall count in full toward the procurement requirements if all of the following conditions are met:
a) The renewable energy resource met the Commission' s RPS eligibility requirements that were in effect when the original procurement or ownership agreement was executed.
b) Any contract amendments or modifications occurring after June 1, 2010, do not increase the nameplate capacity, expected quantities of annual generation, or substitute a different renewable energy resource.
c) If contract amendments or modifications after June 1, 2010, increase nameplate capacity or expected quantities of annual generation, increase the term of the contract, or substitute a different eligible renewable energy resource, only the MWhs or resources procured prior to June 1, 2010, shall count in full toward the RPS procurement targets. The remaining procurement must be classified into PCC1, 2, or 3, and follow the portfolio balance requirements in accordance with RPS Enforcement Regulations section 3204 ( c).
d) The duration of the contract may be extended if the original contract specified a procurement commitment of fifteen ( 15) years or more.
Compliance Period 1 Compliance Period 2 Compliance Period 3 2011- 2013 2014- 2016 2017- 2020
PCC1 ( Minimum) 50% 65% 75%
PCC2 ( No Direct Restriction) n/ a n/ a n/ a
PCC3 ( Maximum) 25% 15% 10%
PCCO Is not subject to portfolio balancing requirements Beyond 2020 is to be determined
Table 2: I F'SBalancingl equirement
2. 4 Redding' s Plan for RPS Compliance
2. 4. 1 Existing Eligible Renewable Resources
Redding currently has the following renewable energy resources under contract and/ or ownership that meet the RPS eligibility requirements:
Wind
Big Horn Wind Project ( PCCO) - In 2006, Redding entered into a 20- year contract with possible 5- year extension for wind energy through the M- S- R Public Power Agency by participation in the Big Horn Wind Project. Redding has contracted for 70 MW of capacity that yields approximately 180,000 MWh of eligible renewable energy annually. o vl h I I u°" o II i::. u; I I d u dl 4, I rl ru. u• oaVu IE4: E.. 7 Packet Pg. 618 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Hvdro (< 30MW)
Whiskeytown Hydro ( PCCO) - In the mid- 1980s, Redding invested in small hydrogeneration at Whiskeytown Dam. The Whiskeytown Project has a capacity of approximately 3 MW and yields roughly 26, 000 MWh of eligible renewable energy annually.
WAPA Small Hydro Program ( PCCO) - Redding participates in WAPA's Small Hydro Program; this contributes approximately 6, 000 MWh of eligible renewable energy to Redding annually.
2. 4. 2 Procurement Plan for Future Renewable Resources In order to meet the RPS mandates, Redding plans to preserve its existing PCCO resources, carry forward excess procurement from one compliance period to the next, and look for valuable opportunities to diversify and expand its RPS portfolio while protecting Redding' s customers from excessive rate increases that could jeopardize economic growth and viability within the City. The Integrated Resource Plan will be the guiding document and tool for choosing the optimal plan.
3. RPS Enforcement Program
3. 1 Enforcement Policy
In compliance with the requirement for the governing board of a POU to adopt a program for enforcement of the legislation prior to January 1, 2012, the Redding City Council passed Resolution 2011- 197 " Resolution of the City Council of the City of Redding to Revise the Renewable Portfolio Standard for the City of Redding' s Electric System" on December 20, 2011. Resolution 2011- 197 adopted the following RPS targets:
A. An average of 20 percent in 2011 through 2013;
B. 25 percent by 2016; and
C. 33 percent by 2020 and thereafter.
Resolution 2011- 197 also adopted the following Enforcement Policies:
A. Redding will make a reasonable effort in the context of Good Utility Practice to be in compliance with the requirements of SBX1- 2.
B. Redding will report annually to the City Council on its status of compliance with SBX1- 2.
C. Redding will notify the City Council of any potential for lack of compliance with the requirements of SBX1- 2 that may be considered for a notice of violation and penalty imposition.
D. Redding will provide an explanation and analysis to the City Council on such potential for o vl h I I u°" o II i::. u; I I d u dl 4, I rl ru. u• oaVu IE4: E.. f Packet Pg. 619 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric lack of compliance with SBX1- 2, as well as a plan of corrective action and timeframe for returning the City to compliant status.
E. At such time, the City Council will direct staff on its recommended course of action. o vl h I I u°" o II i::. u; I I d u dl 4, I rl ru. u• oaVu IEIC E. d Packet Pg. 620 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric
3. 2 Optional Compliance Measures
Specific optimal compliance measures are permitted, and are adopted, by Redding and the City Council. Redding adopts the following optional compliance measures, which may be utilized in the event that factors beyond reasonable control interfere with its ability to meet the procurement requirements set forth in Public Utilities Code § 399. 30 and § 3206 of the RPS Regulations.
A. Excess Procurement:
Redding shall be allowed to apply Excess Procurement from one compliance period to subsequent compliance periods using the criteria outlined in § 3206( a)( 1) of the RPS Enforcement Regulations beginning on January 1, 2011, and shall be calculated as set forth in RPS Enforcement Regulations § 3206( a)( 1)( D).
B. Delay of Timely Compliance:
Enforcement of timely compliance shall be waived if Redding demonstrates that any of the conditions defined in RPS Enforcement Regulations § 3206( a)( 2) are beyond the control of Redding, and Redding would have met its RPS procurement requirements but for the cause of delay.
C. Cost Limitations for Expenditures:
Redding establishes a Cost Limitation on the procurement expenditures for all eligible renewable energy resources used to comply with the RPS, consistent with RPS Enforcement Regulations § 3206( a)( 3).
The Cost Limitation applied to each RPS procurement expenditure will consider the following:
1) Incorporating the annual RPS expenditure into Redding' s current portfolio should not require rate increases of more than 1. 5 percent per year at any time during the life of the considered RPS procurement.
2) The per- kilowatt- hour cost of the considered RPS procurement expenditure should not exceed, nor be projected to exceed, 75 percent of Redding' s current per-kilowatthour retail residential energy charge. 3) When estimating the considered RPS procurement expenditure, the following costs will also be included:
a) The costs associated with firming and shaping, and/or storage, as needed for intermittent resources; and
b) The costs associated with delivery of the renewable energy.
In the event that procurement expenditures exceed the adopted Cost Lim itation, Redding shall re- evaluate its RPS Procurement Plan to ensure that other options are not available that would otherwise allow Redding to meet its RPS procurement requirement. Such review o vl h I I u° II if':.0; I I d u dl 4, I rl ru. u• o aV u IEIC E' 1 Packet Pg. 621 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric will include a re- evaluation of current procurement commitments, planned procurements, long-term commitments, and the availability of alternative resources in other portfolio content categories.
D. Portfolio Balance Requirement Reduction:
Redding shall be allowed to reduce the portfolio balance requirement for Procurement Content Category 119for a specific compliance period if conditions beyond the control of Redding occur that warrant a delay in timely compliance ( as adopted under§ 2. 2 ( B) of the RPS Enforcement Program) as defined in § 3206( a)( 4) of the RPS Enforcement Regulations.
If Redding uses this reduction measure, Redding will update its RPS Procurement Plan with the adjusted information and submit such updated plan to the CEC.
4. Review and UpdatingRequirements ( RPS Enforcement Regulations § 3205( a)) Redding is required to complete an Integrated Resource Plan that will guide the Procurement plan.
A. Redding will provide the following notice regarding new or updated renewable energy resources procurement plans:
1) Redding shall post notice in accordance with Chapter 9 ( commencing with § 54950) of Part 1, Division 2, Title 5 of the Government Code, whenever the City Council will deliberate in public on the RPS Procurement Plan.
2) Along with the posting of the notice of a public meeting to consider the RPS Procurement Plan, Redding shall notify the CEC of the date, time, and location of the public meeting to consider the RPS Procurement Plan. This requirement is satisfied if Redding provides the CEC with the uniform resource locator ( URL) that directly links to the notice for the public meeting. Alternatively, an e- mail with information on the public meeting in Portable Document Format ( PDF) may also be provided to the CEC. 19 Procurement Content Category 1 is defined in§ 3203( a) of the RPS Enforcement Regulations. o vl h I I 9° II if':.u; I I d V dl 4, IIAllru. u oaVu IEIC E' 1' 1 Packet Pg. 622 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric 3) Redding will notify the CEC if any URL provided by Redding no longer contains the correct link, and Redding will send the CEC a corrected URL that links to the information, or a PDF containing the information, as soon as it becomes available. 4) If Redding distributes information to its City Council related to its renewable energy resources procurement status, or future procurement or enforcement programs for the City Council' s consideration at a public meeting, Redding shall make all relevant information available to the public at the same time it is distributed to City Council, and shall provide an electronic copy of that information to the CEC for posting on the CEC' s website. a) This requirement is satisfied if Redding provides the URL that directly links to the documents or information regarding other manners of access to the documents to the CEC. Alternatively, an e- mail with the information in PDF inay also be provided to the CEC.
b) Redding will notify the CEC if any URL provided no longer contains the correct link, and Redding will send the CEC a corrected URL that links to the information, or a PDF containing the information, as soon as it becomes available.
5. Review and Revision History
Revision Revision Summary of Changes
Number Date
1 10/ 15/ 2013 Original version adopted by City Council Date:
October 15, 2013
2 10/ 07/ 2014 Annual update: Removed Lewiston and added Colusa 3 06/ 05/ 18 Combined Procurement and Enforcement plan.
Included SB350 updates, removed Colusa biomass
project, and rearranged information for a more clear,
concise document.
J: A14 RESOURCES\ O1 PROCEDURES AND FILINGS PROCEDURES RPS- 001 RPS PROCUREMENT AND ENFORCEMENT PLAN o vl hIIv9° Ilif':.U; I IdV dlv4, IIAllru'. u oflVu IEIC E' 1 Packet Pg. 623 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric II II .., ii iii ii .., iir iir ii II iii ii ... ii
Procedure No: ersion: pproval Date:
ESCP - 02 Draft 1 September
19, 2017 Energy Storage
Compliance Plan
Effective Date: OCtOber 1, 2017
Document Owner: Lowell Watros
Energy Services Division
ESCP- 02 Energy Storage Compliance
Plan (AB 2514 & AB 2227— Public
Uti I ities Code Sections 2835- 2839)
Reviewed By: Lowell Watros( Resource Planner— Enterprise ervices), Nick Zettel ( Manager— Enterprise Services), Dan Beans Interim Electric Utility Director)
f£ 1 E C' 1' IC ' III' f dopted By: Redding City Council Date: September 19, 2017
o vl h I I vu° II f':.u, I I d u dl v4, IIAllru'. u• ofl u k u' p' 1 Packet Pg. 624 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric
TABLE OF CONTENTS
1. Introduction/ Background............................................................................................................... 3
2. Energy Storage Procurement Plan................................................................................................. 4
2. 1 Plan Overview....................................................................................................................... 4
2. 2 Compliance Periods.............................................................................................................. 4
2. 3 Definitions ofEnergy Storage Technologies....................................................................... 4
3. ESCP Review Requirements............................................................................................................ 5 o. vi ii u, u:. u. i itiu di 4, uAuAp. u oa u u:
Packet Pg. 625 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Introduction/ Background
Redding Electric Utility( REU) started analyzing energy storage technologies in 2004. In 2005, REU installed its first thermal energy storage ( TES) devices within its service territory( a chiller- based TES system at Redding Municipal Airport and a direct expansion TES system at the Redding Fire Department).
Subsequent to REU' s continued pursuit of cost- effective TES installations throughout the Utility' s service territory, Assembly Bill (AB) 2514 ( Energy Storage Bill) was introduced to the California Legislature by Assembly woman Skinner in 2010. This bill passed and was signed into law( Public Utilities Code Section 2835- 2839) by Governor Arnold Schwarzenegger September 29, 2010.
This energy storage law requires the governing board ( City Council) of a local, publicly- owned electric utility by March 1, 2012, to open a proceeding to determine appropriate targets, if any, for the utility to procure viable and cost-effective energy storage systems and, by October 1, 2014, to adopt an energy storage system procurement target,if determined to be appropriate, to be achieved by the utility by December 31, 2016. The law includes a second target to be achieved by December 31, 2020. The law further specifies:
Section 2836 - As part ofthis proceeding, the governing board may consider a variety of possible policies to encourage the cost-effective deployment of energy storage systems, including refinement of existing procurement methods to properly value energy storage systems.
The governing board shall adopt the procurement targets if determined to be appropriate pursuant to paragraph ( 1) by October 1, 2014.
The governing board shall reevaluate the determinations made pursuant to this subdivision not less than once every three years ( in September 2017 and September 2020).
Section 2836.4 - An energy storage system may be used to meet the resource adequacy requirements established by a local, publicly-owned electric utility pursuant to Section 9620 ifit meets applicable standards.
Section 2836. 6 - All procurement of energy storage systems by a load- serving entity or local, publicly- owned electric utility shall be cost- effective. o. vi ii u, u:. u. i itiu di 4, uAuAp. u oa u u:
Packet Pg. 626 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Energy Storage Procurement Plan
2. 1 Plan Overview
The purpose of the ESCP is to identify the policies and procedures for REU to meet the requirements set forth with AB 2514 and the Energy Storage section of the Public Utilities Code ( Sections 2835- 2839).
a) The ESCP incorporates REU' s TES Program with the legislative mandate requiring utilities to review various energy storage technologies and to set procurement and periodic review targets.
b) Under AB 2514, each utility is to review the applicability of various storage technologies to their local operating requirements and identify which of those, if any, would benefit the utility' s electric service requirements. REU has completed an assessment of its TES Program and determined the Program to be beneficial in assisting the overall operating conditions of the Utility.
Under ESCP- 01, REU had a procurement target of 3. 6 MW to be installed and operational by July 1, 2017. That target was obtained and REU is now in the Operations and Maintenance 0& M) phase for the TES Program as it is now configured. Due to the current ( no growth) load forecast and adequate power supplies available for the foreseeable future, no further additions to REU' s energy storage capabilities are contemplated at this time. During the next review period, as part of ongoing Integrated Resource Plan ( IRP) efforts, REU will analyze the value of all qualified energy storage technologies as defined by AB 2514, including TES. The existing TES assets are expected to have an effective 20- year plus life span. While the TES systems have been proving to be quite reliable, some routine maintenance will be needed over the multi- year time period that the equipment is expected to be in service.
Compliance Periods
AB 2514 established the following compliance periods:
1. On or before March 1, 2012, REU must initiate a proceeding to determine appropriate storage targets.
2. Procurement targets must be adopted by October 1, 2014.
3. Review initial storage targets by September 2017.
4. Review the storage targets set in September 2017 by September 2020. o. vi i i u, u:. u. i i ti u di 4, uAuAp. u oa u u:
Packet Pg. 627 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric AB 2227 established the following compliance periods:
1. On or before January 1, 2017, REU must report to the California Energy Commission ( CEC) demonstrating that it had complied with storage targets adopted by City Council on October 1, 2014.
2. By January 1, 2021, in similar fashion as Item 1 above, again file a progress report with the CEC, related to City Council adopted targets on October 1, 2017.
Definitions of EnergyStorageTechnologies
AB 2514 specifically defines what constitutes and qualifies as an energy storage system. The definition as stated in the law( section 2835 ( a)( 1) — ( 2)( A)) is:
commercially available technology that is capable of absorbing energy, storing it for a period of time, and thereafter dispatching the energy." An " energy storage system" shall do one or more of the following:
1) Use mechanical, chemical, or thermal processes to store energy that was generated at one time for use at a later time.
2) Store thermal energy for direct use for heating or cooling at a later time in a manner that avoids the need to use electricity at that later time. 3) Use mechanical, chemical, or thermal processes to store energy generated from renewable resources for use at a later time. 4) Use mechanical, chemical, or thermal processes to store energy generated from mechanical processes that would otherwise be wasted for delivery at a later time.
ESCP Review Requirements
Redding adjusts its load forecast annually. This forecast will be used to anticipate the ESCP' s needs in future years. This ESCP will be updated as appropriate to reflect Redding' s periodic review of loads and available power resources, including energy storage technologies.
a) Redding will review the initial procurement targets set in September 2014 no later than September 2017, and again no later than September 2020.
AB 2227 added to the requirements of AB 2514 minimally in that local, publicallyowned electric utilities, such as REU shall submit a report to the Energy Commission demonstrating it had complied with the energy storage system procurement targets and policies adopted by the City Council in September 2014 by January 1, 2017, and in similar fashion by January 1, 2021. Basically, AB 2227 provides for routine progress reports to the CEC.
Ih[ Y' ti4° Ililu,; Vd uI IdI, P' dllAllru uoa'alu V' p Packet Pg. 628 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric umuu u46! i a
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REPORT TO THE CITY COUNCIL r u u m m i
MEETING DATE: December 19, 2017 FROM: Daniel Beans, Director of ITEM NO. 4. 5( d) Electric Utility
APPROVED BY***
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SUBJECT: 4. 5( d)-- Approve Professional Services Contract for Automated Rebate Processing Services for Reddin Electric Utilit .
Recommendation
Approve Consulting and Professional Services Agreement with Electric and Gas Industries Association, Inc. ( EGIA), a 501( C)( 6) non-profit organization, to provide automated rebate processing services to Redding Electric Utility in an amount not to exceed $ 1, 690, 623 annually; and authorize the City Manager, or his designee, to execute the Agreement and future renewals.
This agreement may be renewed for up to three successive one- year renewal terms by mutual agreement of both parties.
Background
In accordance with Public Utilities Code § 385, Redding Electric Utility (REU) offers rebates to promote energy efficiency and conservation within the Redding city limits. The Electric Department manually processes approximately 4, 000 energy efficiency rebate applications per year and expects this number to increase with the addition of modified commercial rebates and implementation of the recent electric vehicle rebate. An opportunity exists to improve customer service and reduce administrative costs by transitioning to a software-based automated rebate processing service. Features of the proposed automated rebate processing service are as follows:
Ability for the Electric Department to handle increased volume of rebates without hiring additional staff.
Capability for customers to apply for rebates using an electronic platform in addition to the current paper- based process.
Program reporting dashboard to provide real-time information related to rebates, savings and Program budget.
In 2015, the Southern California Public Power Agency ( SCPPA) performed a competitive Request for Proposal ( RFP) and awarded a rebate processing contract to EGIA for SCPPA members. Staff reviewed proposals submitted by all respondents and verified that the EGIA proposal encompassed the needs of REU at the lowest cost. In addition, the City of Redding' s Packet Pg. 629 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Report to Redding City Council December 12, 2017
Re: 4. 5( d)-- Approve Professional Services Contract forAutomated Rebate Processing ServicesPage 2 Purchasing Officer reviewed SCPPA' s RFP materials and determined that the City is able to award a contract to EGIA based on the SCPPA procurement.
If the Professional Services Contract is approved, the City will execute a one- year contract attached) with EGIA in an amount not to exceed $ 185, 623 per year for rebate processing services. Furthermore, an additional $ 5, 000 will be reserved for postage and printing services, and $ 1, 500, 000 will be reserved to fund rebates for the City' s customers applying for commercial, residential, electric vehicle, and custom rebates. The total budgeted amount is 1, 690, 623; however, the actual amount of this contract will be dependent on the number of rebate applications received. This agreement may be renewed for up to three successive one- year renewal terms by mutual agreement of both parties.
Issue
Should the Redding City Council ( Council) authorize the City Manager, or his designee, to approve the Professional Services Contract with Electric and Gas Industries Association, Inc. in the amount not to exceed $ 1, 690, 623?
Alternatives and Implications ofthe Alternatives
The Council has the following alternatives:
1. Authorize the City Manager, or his designee, to approve the Professional Services Contract and up to three, one- year contract renewal terms with the Electric and Gas Industries Association, Inc. in an amount not to exceed $ 1, 690, 623 annually.
2. Reject the proposed plan to transition to automated rebate processing and provide alternate direction to staff.
Fiscal Impact
Funding for this Project will be provided from the existing demand- side management program funds and will not be a material impact to REU.
Conclusion
Staff respectfully recommends the Council authorize the City Manager, or his designee, to approve the Professional Services Contract with Electric and Gas Industries, Inc. to provide automated rebate processing services to Redding Electric Utility.
Attachments
Consulting and Professional Services Agreement( available online) Packet Pg. 630 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric
CITY OF REDDING
CONSULTING AND PROFESSIONAL SERVICES CONTRACT
THIS CONTRACT is made at Redding, California, by and between the City ofRedding{" City"), a municipal corporation, and Electric and Gas Industries Association, Inc. {" EGIA" or Consultant") for energy efficiency rebate processing.
WHEREAS, City does not ha e sufficient personnel to perform the services required herein thereby necessitating this Contract for personal services.
NOW, THEREFORE, the Parties covenant and agree, for gOOd consideration hereby acknowledged, as follows:
ECTION 1. CONSULTANT ERVICES
Subject to the terms and conditions set forth in this Contract, Consultant shall provide to City the services described in Exhibit A and Eachibit C, attached and incorporated herein.
Consultant sha l provide the services at the time place and in the manner specified in Exhibits A and C.
SECTION 2. COMPENSATION AND REIMBURSEMENT OF COSTS
A. City shall pay Consultant for ser ices rendered pursuant to this Contract, at the times and in the manner set for h in Exhibits A and C, attached and incorporated herein, in a total amount not to exceed one hundred eighty five thousand, six hundred and twenty three dollars ($ 185, 623). This sum includes all out- of-pocket tra el, lodging and incidental expenses incurred by Consuitant that are reasonably associated with the provision of services under this Contract. The payments specified herein shal be the only payments to be made to Consultant for services rendered pursuant to this Contract.
Pursuant to Exhibit B, attached and incorporated herein, in addition to payment for services rendered, City shall reimburse Consultant for rebates paid to customers, , printing and postage in a total amount not to exceed one million, fi e hundred and ve thousand dollars ($ 1, 505, 000).
B. Consultant shall submit monthly invoices to City for work completed related to Exhibit B ltems 1- 6 to the date of the in oice. Consultant shall submit twice monthly invoices related to Exhibit S, Item 7. All invoices shall be itemized to reflect the amount billed to each task with sufficient backup to validate claimed performance and expenses incurred.
Consulting and Professional Services Agreement Page 1
Rev. 11/ 28/ 20l 7
Packet Pg. 631 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric C. All correct, complete and undisputed invoices sent by Consultant to City shall be paid within thirty (30} calendar days of receipt.
SECTION 3. TERM AND TERMINATION
A. This Agreement shall be effective as of th Effective Date and shalt continue for one year frorn the Program start date ( the " lnitial Term"), unless terminated earlier in accordance with this Agreement or otherwise amend d by agreement of both Parties.
This Agreement may be renewed for up to thr e successive one( 1) year renewai terms each, a " Renewal Term") by mutual agreem nt of the Parties in writing at least on hundr d and twenty ( 120) days prior to the expiration of the Initial Term or any Ren wal Term, as applicable. V ndor and Client shall rnutually agre to any additional terms and conditions or fee changes applicable to each such Renewal Ter n.
B. If Consultant fails to perform its duties to the satisfaction of City, or if consultant fails to fulfill in a timely and professional manner its obligations under this Contract, then City shall have the right to terminate this Contract effective immediately upon City giving writt n notice thereof to Consultant.
C. Either Parky may terminate this Contract without cause on thirty { 30) calendar days' written notice. Notwithstanding the preceding, ifth term set forth in Section 3. A. of this Contract exceeds ninety { 90) calendar days in duration, Consultant' s sole right to terminate shall be limited to termination for cause.
D. Consultant hereby acicnowledges and agrees that the obligation of City to pay under this Contract is contingent upon the availability of City' s funds which are appropriated or allocated by the City Council. Should the funding for the project andlor work set forth herein not be appropriated or allocated by the City Council, City may terminate this Agreement by furnishing at least thirty{ 30} calendar days' written notice of its intention to terrninate. In the event of a termination pursuant to this subdivision, Consultant shall not be entitled to a remedy of acceleration of payments due over the term of this Agreement. The Parties acicnowledge and agree that the power to teRninate described herein is required by Article 16, Section 18, of th California Constitution, and that constitutional provision supersedes any law, rule, regulatian or statute which conflicts with the provisions of this Section.
E. ln the event that City gives notice of termination, Consultant shall promptly provide to City any and all finished and unfinished reports, data, studies, photographs, charts or other work product prepared by Consultant pursuant to this Cantract. City shall have full ownership, including, but not lirnited to, intellectual properky rights, and control of all such finished and unfinished reports, data, studies, photographs, charts or other work product.
Co sulting and Professional 5ervices Agreement Page 2
Rev. I 1/ 28/ 2Q 17
Packet Pg. 632 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric F. In the e ent that City terminates the Contract, City shall pay Consultant the reasonable value of ser ices rendered by Consultant up to the date of termination pursuant to this Contract, pro ided, however, that City shall not in any manner be liable for lost profits which might have been made by Consuttant had Consultant completed the services required by this Contract. Consultant shall, not later than ten 10) calendar days after termination of this Contract by City, furnish to City such financial information as in the judgment of the City' s representative is necessary to determine the reasonable value of the services rendered by Consultant.
G. In no event shall the termination or expiration of this Contract be construed as a waiver of any right to seek remedies in law, equity or otherwise for a 1' arty' s failure to perform each obligation required by this Contract.
SECTION 4. MISCELLANEOUS TERMS AND CONDITIONS OF CONTRACT A. City shall make its facilities accessible to Consultant as required for Consultant' s performance of its ser ices under this Contract, and, upon request of Consultant, provide labor and safety equiprnent as required by Consultant for such access.
B. Pursuant to the City' s business license ordinance, Consultant shall obtain a City business license prior to commencing work.
C. Consultant represents and warrants to City that it has all licenses, permits, qualifications and approvals of any nature whatsoever that are legally required for Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Contract any licenses, permits and approvals that are legally required for Consultant to practice its profession.
D. Consultant shall, during the entire term of this Contract, be construed to be an independent contractor and nothing in this Contract is intended, nor shall it be construed, to create an employerlernployee relationship, association, joint enture relationship, trust or partzZership or to allow City to exercise discretion or control over the professional manner in which Consultant performs under this Cantract. Any and all taxes imposed on Consultant' s income, imposed or assessed by reason of this Contract or its performance, including but not iimited to sales or use taxes, shall be paid by Consultant. Consultant shall be responsible for any taxes ar penalties assessed by reason of any cla ms that Consultant is an employee of City. Consultant shall not be eligible for coverage under City' s workers' compensation insurance plan, benefits under the Public Ernployee Retirement System or be eligible far any other City benefit.
Consulting and Professional Services Agreement Page 3
Rev. 1 1/ 28120 1 7
Packet Pg. 633 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric E. No pro ision ofthis Cantract is intended to, or shall be far the benefit of, or construed to create rights in, or grant remedies tq any person ar entity not a party hereto.
F. No portion of the work or services to be performed under this Contract shall be assigned, transfet- ed, conveyed or subcontracted without the prior written approval of City. Consultant may use the ser ices of independent contractors and subcontractors to perfortn a portion of its obligatians under this Contract with the prior written approval of City. Independent contractors and subcontractors shall be provided with a copy of this Contract and Consultant shall have an affirmative duty to assure that said independent contractars and subcontractors comply with the same and agree to be bound by its terms. Consultant sha11 be the responsible party with respect to all actions of its independent contractors and subcontractars, and shall obtain such insurance and indemnity provisions from its contractors and subcontractars as City' s Risk Manager shall determine to be necessary.
G. Consultant, at such times and in such form as City may reyuire, shall furnish City with such periodic reports as it may request pertaining to the work or services undertaken pursuant to this Contract, the costs or obligations incurred or to be incurred in connection therewith, and any other matters covered by this Contract.
H. Consultant shall maintain accounts and recards, including personnei, praperty and financial records, adequate to identify and account for all costs pertaining to this Contract and such other records as may be deemed necessary by City to assure proper accounting far all project funds. These records shall be made a ailable for audit purposes to state and federal authorities, or any authorized representati e of City.
Consultant shall retain such records for three ( 3) years after the expiration of this Contract, unless prior permission to destroy them is granted by City.
I. Consultant shall perform all ser ices reyuired pursuant to this Contract in the manner and according to the standards observed by a competent practitioner of Consultant' s profession. Al! products of whatsoever nature which Consultant deli ers to City pursuant to this Contract shall be prepared in a professional manner and conform to the standards of quality normally obser ed by a person practicing the profession of Consultant and its agents, employees and subcontractors assigned to perform the services contemplated by this Contract.
J. All cornpleted reports and other data or documents, or cornputer media including diskettes, and other materials provided or prepared by Consultant in accordance with this Contract are the property of City, and may be used by City. City shall have all inte lectual property rights including, but not limited to, capyright and patent rights, in said documents, computer rnedia, and other materials pro ic ed by Consultant. City shall release, defend, indemnify and hold harmless Consultant from all claims, costs, expenses, damage or liability arising out of or resulting from City' s use ar modification of any reports, data, docurnents, drawings, specifications or other work Consulting and Professional Services Agreement Page 4
Re. 11/ 28/ 2017
Packet Pg. 634 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric product prepared by Consultant, except for use by City on those portions of the City' s project for which such items were prepared.
K. Consultant, including its employees, agents, and subconsultants, shal] not maintain or acquire any direct or indirect interest that conflicts with the performance of this Contract. Consultant shall comply with all requirements ofthe Political Reform Act Gove- nment Code § 8100 et seq.) and other laws re ating to conflicts of interest and Consultant shal] not make or participate in a decision made by City if it is reasonably foreseeable that the decision may have a material effect on Consultant' s economic interest.
SECTION 5. NSURANCE
A. Unless modified in writing by City' s Risk Manager, Consultant shall maintain the following noted insurance during the duration of the Contract:
Covera e Required Not Required
Commercial General Liability X
Comprehensive Vehicie Liability X
Workers' Compensation and Emplpyers' Liability X
Professional T, iability{ Errors and Omissions) X
Pkace an" x" in the appropriate box)
B. Coverage shall be at least as broad as:
1. Insurance Services Office form number CG- 0001, Commercial General Liability Insurance, in an amount not less than$ 1, 000,000 per occurrence and 2, 000, 000 general aggregate far bodily injury, personal injury and property damage;
Insurance Services Office form nurnber CA-0001 ( Ed. 1/ 87), Comprehensive Automobile Liability Insurance, which provides for total limits of not less than $ 1, 000,000 combined single imits per accident applicable to all owned, non- owned and hired vehicles;
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2. Statutory Workers' Compensation required by the Labor Code of the State of California and Ernplayers' Liability Insurance in an amount not less than I, 000, 000 per occu- rence. Both the Workers' Compensation and Employers' Liability policies shall contain the insurer' s waiver of subrogation in favor of City, its elected officials, officers, employees, agents and volunteers;
3. Professional Liability { Errors and Omissions) Insurance, appropriate to Consultant' s profession, against loss due to error or ornission or malpractice in an amount not less than $ 1, 000, 000.
4. The City does not accept insurance certi cates or endorsements with the wording " but only in the event of a named insured' s sole negligence" or any other verbiage lirniting the insured' s insurance responsibility.
C. Any deductibles or self-insured retentions must be declared to and approved by City.
At the option ofthe City, either: the insurer shall reduce or eIiminate such deductibles or self-insured retentions as respects the City, its elected officials, officers, employees, agents and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claims administration and defense expenses.
D. The General Liability shall contain or be endorsed to contain the following provisions:
1. City, its elected officials, officers, employees, and agents are to be cavered as additional insured as respects liability arising out of work or operations performed by or on behalf of Cansultant; premises owned, leased or used by Consultant; or automobiles owned, leased, hired or borrowed by Consultant.
The co erage shall contain no special limitations on the scope of protection afforded to City, its elected officials, officers, employees, agents and volunteers.
2. The insurance coverage of Consultant shall be primary insurance as respects City, its elected of cials, officers, emp oyees, agents and volunteers. Any insurance or self- insurance maintained by City, its elected officials, officers, employees, agents and volunteers, shall be in excess of Consultant' s insurance and shall not contribute with it.
3. Coverage shall state that the insurance of Consultant shall apply separately ta each insured against whom c aim is made or suit is brought, except with respect to the limits ofthe insurer' s iiability.
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4. Each insurance policy required by this Contract shall be endorsed to state that coverage shall not be canceled except after thiriy ( 30} calendar days' prior written notice has been given to City. In addition, Consultant agrees that it shall not reduce its coverage or limits on any such poiicy except after thirty 30) calendar days' prior written notice has been given to City.
E. Insurance is to be placed with insurers with a current A.M. Best' s rating of no Iess than A- VII.
F. Consultant shall designate the City of Redding as a Certificate Holder of the insurance. Consuitant shall furnish City with certificates of insurance and original endorsements effecting the coverages required by this clause. Certificates and endorsements shall be furnished to: Risk Management Department, City of Redding, 777 Cypress Avenue, Redding, CA 96001. The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City' s Risk Manager priar to the commencement of contracted services. City may withhold payments to Consultant if adequate certificates of insurance and endorsements required have not been provided, or not been pro ided in a timely manner.
G. The requirements as to the types and limits of insurance coverage to be maintained by Consultant as required by Section 5 of this Contract, and any approval of said insurance by City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by Consultant pursuant to this Contract, including, without limitation, provisions concerning indemnification.
H. If any policy of insurance required by this Section is a" claims made" policy, pursuant to Code of Civil Procedure § 342 and Government Code § 945. b, Consultant shall keep said insurance in effect for a period of eighteen( 1 S} months after the termination of this Contract.
L
If any damage, including death, personal injury or property damage, occurs in connection with the performance of this Contract, Consultant shall immediately notify City' s Risk Manager by telephone at( 530) 225- 4068. No later than three ( 3) calendar days after the event, Consu tant shall submit a written report to City' s Risk Manager containing the following infornnation, as applicable: 1) name and address of injured or deceased person( s}; 2} name and address of witnesses; 3) name and address of Consultant' s insurance company; and 4} a detailed description of the damage and whether any City property was in olved.
SECTION 6. INDEMNIFICATION AND HOLD HARNII.ESS
A. Consistent with California Civil Code § 2782. 8, when the services to be provided under this Cantract are design professional services to be performed by a design Consulting and Professional Services Agreement Page 7
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Packet Pg. 637 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric professional, as that term is defined under Section 2782. 8, Consultant shall, to the fullest extent permitted by law, indernnify protect, defend and hold hartnless, City, its elected officials, officers, employees, and agents, and each and e ery one of them, from and against all actions, damages, costs, liability, claims, losses, penalties and expenses ( including, but not limited to, reasonable attomey' s fees of the City Attorney or legal counsel retained by City, expert fees, litigation costs, and in estigation costs} of every type and description to which any or all of them may be subjected by reason of, or resulting from, directly or indirectly, the negligence, recklessness, or willful misconduct of Consultant, its of cers, employees or agents in the performance of professional services under this Contract, except when liability arises due to the sole negligence, active negligence or misconduct ofthe City.
B. Other than in the performance of professional services by a design professional, which is addressed solely by subdi ision ( A) of this Section, and to the fullest extent pe rnitted by law, Consultant shall indemnify protect, defend and hold harm ess, City, its elected officials, officers, employees, and agents, and each and every one of them, from and against all actions, damages, costs, liability, claims, losses, penalties and expenses related to Consultants rebate processing Scope of Work( including, but not lirnited to, reasonable attorney' s fees of the City Attomey or legal counsel retained by City, expert fees, litigation costs, and investigation costs) of every type and description to which any or all of them may be subjected by reason of the performance ofthe services required under this Contract by Consultant its officers, employees or agents in the performance of professional ser ices under this Contract, except when liability arises due to the sole negligence, acti e negligence or misconduct ofthe City.
C. The Consultant' s obligation to defend, indernnify and hold harmless shall not be excused because of the Consultant' s
inability to evaluate liability. The Consultant
shall respond within thirty { 30) calendar days to the tender of any claim for defense and indemnity by the City, unless this time has been extended in writing by the City. f the Consultant fails to accept ar reject a tender of defense and indemnity in writing de( ivered to City within thirty ( 30) calendar days, in addition to any other remedy authorized by law, the City may withhold such funds the City reasonably considers necessary for its defense and indemnity until disposition has been made of the clazm or until the Consultant accepts or rejects the tender of defense in writing delivered to the City, whiche er occurs first. This subdivision shall nat be construed to excuse the prompt and continued performance of the duties required of Consultant herein.
D. The obligation to indemnify, protect, defend, and hold harmless set forth in this Section applies to all claims and liability related to Consultants rebate processing Scope of Work, regardless of whether any insurance policies are applicable. The policy limits of said insurance policies do not act as a limitation upon the amount of indemnification to be pro ided by Contractor.
Consulting and Professional Services Agreement Page 8
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Packet Pg. 638 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric E.
SECTION 7. CONTRACT INTERPRETATION VENUE AND ATTORNEY FEES A. This Con#ract shall be deerned to have been entered into in Redding, California. All yuestions regarding the validity, interpretation or performance of any of its tertns or of any rights or obligations of the parties to this Contract shall be governed by California law. If any clairn, at law or otherwise, is made by either party to this Contract, the prevailing party shall be entitled to its costs and reasonable attorneys' fees.
B. This document, including all exhibits, contains the entire agreernent between the parties and supersedes whatever oral or written understanding each may have had prior to the execution of this Contract. This Contract shall not be altered, amended or modified except by a writing signed by City and Consuitant. No verbal agreement or conversation with any official, officer, agent or employee of City, either before, during or after the execution of this Contract, shall affect or modify any of the terms or conditions contained in this Contract, nor shall any such verbal agreement or conversation entitle Consultant to any additional payment whatsoever under the terms of this Contract.
C_ No covenant or condition to be performed by Consultant under this Contract can be waived except by the written consent of City. Forbearance or indulgence by City in any regard whatsoever shall not constitute a waiver of the covenant or condition in yuestion. Until perforcnance by Consultant of said covenant or condition is cornplete, City shall be entitled to invoke any remedy available to City under this Contract or by law or in eyuity despite said forbearance or indulgence.
D. lf any portion of this Contract or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Contract shall not be affected thereby and shall be enforced to the greatest extent pertnitted by law.
E. The headings in this Contract are inserted for convenience only and shall not constitute a part hereof. A waiver of any party of any provision or a breach of this Contract must be provided in writing, and shall not be construed as a waiver of any other provision or any succeeding breach of the same or any other pro isions herein.
F. Each Party hereto declares and represents that in entering into this Contract, it has relied and is reIying solely upon its own judgment, belief and knowledge of the nature, extent, effect and consequence relating thereto. Each Pariy further declares and represents that this Contract is made without reliance upon any statement or representation not contained herein of any other Party or any representative, agent or attorney of the other Party. The Parties agree that they are aware that they have the right to be advised by counsei with respect to the negotiations, ter ns, and conditions Consulting and Professional Services Agreement Page 9
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Packet Pg. 639 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric of this Cantract and that the decision of whether ar nat ta seek the advice of counsel with respect to this Contract is a decision which is the sole responsibility of each of the Parties. Accordingly, no party shall be deemed to have been the drafter hereof, and the principle of law set forth in Civil Code § l G54 that contracts are construed against the drafter shall not apply.
G. Each ofthe Parties hereto hereby irrevocably waives any and all right to trial by jury in any action, proceeding, claim or counterclaim, whether in contract or tort, at 1aw or in equiry, arising out of or in any way related to this Agreement or the transactions contemplated hereby. Each Party further waives any right to consolidate any action which a jury trial has been waived with any other action in which a jury trial cannot be or has not been waived.
H. In the event of a conflict between the tez-m and conditions of the body of this Contract and those of any exhibit or attachment hereto, the terms and conditions set forth in the body of this Contract proper shall prevail. In the event of a conflict between the terms and conditions of any two or mare exhibits ar attachments hereto, those prepared by City shalI prevail over those prepared by Consultant.
SECTION$. SURVIVAL
The provisions set forth in Sections 3 through 7, inclusive, of this Contract shall survive termination of the Contract.
SECTION 9. COMPLIANCE WITH LAWS - NONDISCRIMINATION
A. Consultarit shall comply with all applicable laws, ordinarices and codes of federal, state and local goverriments.
B. In the performance of this Contract, Consultarit shall not discriininate against any employee or applicant for employrnent because of race, color, ancestry, national arigin, religious creed, sex, sexual orientatian, disability, age, inarital status, political affiliation, or mernbership or nonmetnbership in any organization. Consultant shall take affirmative action to ensure applicants are employed and that employees are treated during their employment without regard to their race, color, ancestry, national origin, religious creed, sex, sexual orientation, disability, age, marital status, political affiliation, or meinbership or nonmembership in any organization. Such actions shall include, but not be jimited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other fo rr s of cornpensation and selection for training.
SECTION 10. REPRESENTATIVES
Consulting and Professional Services Agreement Page 10
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Packet Pg. 640 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric A. City' s representative for this Contract is Nathan Aronson, telephone number ( 530) 334- 7236, fax number { 530) 339- 7299. Al] of Consultant' s questions pertaining to this Contract shall be referred to the above- named person, or to the representative' s designee.
B. Consultant' s representative for this Contract is Becky Howarth, telephone number 916) 480- 7332 , fax number ( 800) 506- 9073. All of City' s questions pertaining to this Contract shatl be referred to the above- named person.
C. The representatives set forth herein shall have authority to give all notices required herein.
SECTION 11. NOTICES
A. Al notices, requests, demands and other communications hereunder shall be deemed given only if in writing signed by an authorized representative of the sender( may be other than the representatives referred to in Section 10} and delivered by facsimile, with a hard copy mailed first class, postage prepaid; or when sent by a courier or an express service guaranteeing overnight delivery to the receiving party, addressed to the respective parties as follows:
To City: To Consultant:
Daniel Beans Bruce Matulich
3611 Avtech Parkway 3800 Watt Ave., Suite 105
Redding, CA, 96002 Sacramento, CA 95 821
530. 339. 7333 866. 367. 3442 x 314
B. Either party may change its address for the purposes of this paragraph by giving written notice of such change to the other party in the manner provided in this Section.
C. Notice shall be deemed effective upon: 1) personal service; 2} two calendar days after mailing or transmission by facsimile, whichever is earlier.
SECTION 12. AUTHOR TY TO CONTRACT
A. Each of the undersigned signatories hereby represents and warrants that they are author zed to execute this Contract on behalf of the respective parties to this Contract; that they have full right, power and lawful authority to undertake all obligations as provided in this Contract; and that the execution, performance and delivery of this Contract by said signatories has been fully authorized by all requisite actions on the part of the respective parties to this Contract.
B. When the Mayor is signatory to this Contract, the City Manager andlor the Department Director having direct responsibility for managing the services provided Consulting and Pro essional Services Agreement Page 11
Rev. 1 112 8120 1 7
Packet Pg. 641 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric herein shall have authority to execute any amendment to this Contract which does not increase the amount of compensation allowable to Consultant or otherwise substantially change the scope of the services provided herein.
SECTION 13. DATE OF CONTRACT
The date of this Contract shalI be the date it is signed by City.
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Packet Pg. 642 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric IN WITNESS WHEREOF, City and ConsuItant have executed this Contract on the days and year set forth below:
CITY OF REDDING,
A Muaicipal Corporation
Dated: 20
By:
ATTEST: APPROVED AS TO FORM:
BARRY E. DeWALT
City Attorney
PAMELA MIZE, City Clerk By:
CONSULTANT
Dated: a y ,20
By m l l,
o
Tax ID No.: % y'"' o j
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Packet Pg. 643 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Exhibit A - Service Description
This Exhibit A is subject and shall be go erned by the P ofessional Ser iice Agreement( the" Agreement") between EGIA and the City of Redding, which is hereby incorporated by reference. Capitalized terms used but not otherwise defined in this Exhibit shall ha e the meaning ascribed to them in the Agreement.
WHEREAS, the parties wish to document EGIA implementaiion of energy efficiency rebate processing ser iices under this schedule as of the Eifecti e Date.
Introduction
The Services under this Exhibit A consist of automated rebate processing services pro ided to the City of Redding. These automated rebate- processing services will include three distinct components, which include 1) full ser iice processing of commercial and residential rebates, 2} rebate processing online application hosting ser iice for commercial lighting rebates, and 3) rebate processing online application hosting service foT commerciaE custom rebates.
City of Redding and EG IA each will assign a 1' ro ect Manager that will be responsible for completing the implementation ser iices outlined in this Exhibit A.
The Ser iices consists of the following major elements described in this schedule. 1) Task 1: Program De elopment and Start Up
2) Task 2: Full Service Rebate Processing for Commercial and Residential Deemed Rebates 3} Task 3: Rebate Processing Online Application Nosting Service for Commercial Lighting Rebates and Commercial Custom Rebates.
4) Task 4: Program Management and Reporting
5) Task 5: Service Management
6) Task 6: Task Orders
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O erview
In coordination with City of Redding, EGIA will adapt their proprietary rebate processing system described in Exhibit C to the specific needs of the City of Redding.
Responsibifity Matrix
The Program De elopment and Start Up functionality consists of the following:
Function City of EGIA
Redding
1 Identify Project Manager X X
2 Finalize All Program Specifications with City Program S X Management
3 Customize Program Specifications and Rufes S X
4 Customize Consumer Messaging Requirements S X
5 Design Check Stock and En elopes For Appro al ( if S X applicable)
6 Setup Bank Accountl Trust Account For Funding Rebate S X Checks { if applicable)
7 Finalize Program Messaging For Website Online S X
Application
8 Design Phone Script For Program For Approval S X
9 Program Checks and En elopes Sent To Printer S X
10 De elop Program Customer Communication Letters S X
11 Complete De elopment Of The Rebate Database and S X
Rebate Processors Desktop Application
12 Comp[ete De elopment of Online Application S X
13 Develop Program Specific Reporting S X
14 De elop Program In oicing S X
15 Record Final Draft Of Approved Phone Script S X
16 Draft and Program Customer Rebate Status emails S X
17 Complete Development of Automated Online Rebate S X
Status Function
18 Train CSR' s On Program, Including Terms 8 Conditions, S X I equirements, Quafifying Products and Application
19 Dev lop Standardized Online Reporting Qashboard S X
20 Final Test All Systems and Processes with City Final S X Approval
21 Launch Program & Begin Processing Rebate Applicakions S X Note: "X" indicates responsible party and" S" indicates supporting party.
Consul# ing and Professional Services Agreement Page 1 S Rev. 11/ 28/ 2017
Packet Pg. 645 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Timeline
Acti ity Phase 1: Development Phase 2: De efopment of
of Fully Hosted System Online Application for
for Residential and Lighting and Custom
Commercia! Deemed Rebates
Rebates
Business Days from Business Days from
Contract Appro al Completion of Phase 1
1 Identify Project Manager 2 2
2 Finalize All Program Specifications with City 15 15
Program Managernent
3 Customize Program 5pecifications and Rules 15 15
4 Customize Consumer Messaging 15 15
Requirements
5 Design Check Stock and Envelopes For 20 20
Approval ( if
applicable)
6 Setup Bank Accountl Trust Account For 20 20
Funding Rebate Checks( if applicable}
7 Finalize Program Messaging For Website 20 20
Online Application
8 Design Phone Script For Program For 20 20
Approval
9 Program Checks and n elopes Sent To 25 25
Printer
10 De elop Program Customer Communication 30 30
Letters
11 Complete De elopment Of The Rebate 30 30
Database and Rebate Processors Desktop
Application
12 Complete Development of Online Application 30 30
13 De elop Program Dashboard Reporting 30 30
14 de elop Program Invoicing 35 35
i 5 Record Final Draft Of Approved Phone Script 35 35
i 6 Draft and Program Customer Rebate Status 35 35
emails
17 Complete Development of Automated Online 35 35
Rebate Status Function
18 Train CSR' s On Program, Including Terms 8 40 40
Conditions, Requirements, Qualifying
Products and Application
19 Develop Online Reporting Template and 40 40
Standardized Reports
Consulting and Professional Services Agreement Page 16
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Packet Pg. 646 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric 20 Final Test All 5ystems and Processes with 40 40
City Final Appraval
29 Launch Program 8 Begin Processing Rebate 45 45
Applications
Task 2: Rebate Processinq
O erview
Using the processes and tools developed during program startup, EGIA wili process residential and commercial rebate applications submitted by City of Redding Electric Customers.
Responsibility Matrix
The rebate processing functions and responsibilities are shown below.
Functian City of EGIA
Redding
1 Validate Utility Customer 5tatus X
2 Validate Rebate Application Compliance X
3 Enter Rebate Application into Database X
4 PerForm field erificationlinspection of rebate reservations X pre-installation) and rebate applications ( past- installation) and update in database.
5 Maintain Rebate Filing 5ystem X
6 Main# ain Customer Call Center{ call handling and X
Customer Service)
7 Facilitate customer communication including customer X denial letterlemail correspondence
8 Follow- up Qn Incomplete or Deficient Applications X
9 Facilitate Issue Resolutionl Customer Escalations 5 X 10 Print Rebate Checks X
11 Mail Rebate Checks to Utiiity Custamer Account Holder X Note: " X" indicates responslble party and " S" indicates supparting parry.
Timeline
Rebate processing begins upon approval cornpletion of the startup phase, and will typically continue 2 rnonths after the last rebate is submitted at the end of the cantract.
Consulting and Professional Services Agreement Page 17
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Packet Pg. 647 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Task 3: Pro ide Online As plication Hostin Service
O erview
Using the processes and tools developed during program startup, EGIA will pro ide an online application hosting service for commercial lighting and commercial custom rebates. City of Redding Staff will be re iewing and appro ing commercial lighting rebates and custom rebates using EGIA' s online tool.
Responsibility Matrix
The Oniine Application Hosing Service functions and responsibilities are shown befow.
Function City of EGIA
Redding
1 fT Security Monitoring X
2 Ongoing Database& Network Maintenance X
3 Ongoing Application Updates/ Enhancements X
4 Data Integration & Updates X
5 Ongoing Dashboard Performance Reporting X
6 Automated In oicing x
7 Automated email Generation X
8 Application Hosting X
9 2417 IT Support x
1Q Maintain Auto Generated emaill Customer Correspondence Content X 11 Validate LJtility Customer Status when rebates are submitted X 12 Validate Rebate Application Compliance X
13 Enter Rebate Application into Database X
94 Perform field verificationlinspection of rebate reservations ( pre-installation) X and rebate applications ( post- instaflation) and update in database. 15 Maintain Rebate Filing System x
16 Maintain Customer Call Center{ call handling and Customer Service) X 17 Facilitate customer communication inciuding customer denial fetter/ email X correspondence
18 Follow- up On Incomplete or Deficient Applications X 19 Facilitate Issue Resolutionl Customer Escalations X
Consulting and Professiona 5ervices Agreement Page 18
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Packet Pg. 648 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric 20 Print Rebate Checks X
21 Mail Rebate Checks to Utility Customer Account Holder X Note: " X" indicates responsib e party and" S" indicates supporting party.
Time ine
Online application hosting begins upon appro al completion of the startup phase,.
Task 4: Proqram Management and Reportinq
EGIA wil provide program management serrrices required to implement the rebate program and report to the City of Redding. EGIA will pro ide an online dashboard that alfows for reporting. City of Redding will pro ide the sa ings per measure( kW and kWh} for each item on the rebate program qualified measure list and the rebatel incenti e amounts. GIA will produce a dashboard with standardized reporting to track the cumulative amount paid for incenti es, encumbered rebate funds, the remaining budget year- todate and kW and kWh sa ings on the dashboard. The City of Redding will also ha e online access to all utility specific data held in the EGIA ERPS system. This data can be downloaded at any t me into an excel file for full utility reporting and data anafysis to allow Redding lectric to generate additional program reports.
Responsibility Matrix
The program management functions and responsibilities are shown below.
Function City of EGIA
Redding
1 Fund Account Maintenance X
2 Call Center Management X
3 Enforce Financial Security Measures X
4 Prepare and Transmit Database Reportsl Program Files X 5 Ongoing Quality Assurance and Quality Controf X
6 Monthlyl Quarterly and Annual Reporting X
7 Twice Monthly Incenti e Reimbursement In oicing X
8 Monthly Rebate Processing Fee Invoicing X
9 Monthly Scheduled Conference Calls With Utility Program X Managers.
10 Qualified Product List( QPL} Maintenance X
11 Ongoing CSRI Rebate Processor Training X
12 IT Security Monitoring X
13 Ongoing Database& Network Maintenance X
14 Data Integration Updates( customer account and prior X participation updates)
15 Application Hosting X
16 IT Help Desk X
17 2417 ! T Support X
Consulting and Professional Services Agreement Page 19
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Packet Pg. 649 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Timeline
This activity is ongoing through the course of the contract.
Task 5: Service Mana ement
Overview
5er ice Management is the function of managing the program in a manner that that will achieve the City of Redding program goals within the program budget. These goals are listed in the Table below.
Quality Metric Goal
Rebate Processing Time
9 o o of rebates processed within 30 days of receipt of completed application. Frame Call center availability 95% of pho e calls answered within 60 seconds. 95% of calls monitored per EGIA quality assurance program achieve Call center quality rating of" meets expectations" or better. REU may request and monitor specific phone calls within 30 days of call receipt as needed for specia! circumstances { e. g. customer complaint)
Response Rate
97% of phone and email messages returned to customers within one business day.
Rebate Portal Availability
Rebate application portal maintains ser ice a ailability of 97% not including planned outages.
Functions
The functions of 5ervice Management consist of:
1) Facilitate or make data a ailable to enable City of Redding review of customer interactions including phone calls and email correspondence as needed for special circumstanced { e. g. customer complaint).
2) Prepare for and re iew quality metrics at monthly meetings. 3) Document issues discussed and agreed up on changes for moving forward. 4) Integrate agreed up on changes into EGIA' s service offering.
Function City of EGIA
REdding
1 Facilitate review or make data a ailable to enable review X X 2 Prepare for and re iew quality metrics at monthly meetings. X 5 3 Document issues discussed and agreed up on changes for X 5 mo ing forward.
4 Integrate agreed up on changes into EGIA' s service offering. X Note: " X° indicates responsible party and" 5° indicates supporting party.
Timeline
1) Facilitate re iew or make data a ailable to enable re iew— Monthly Consulting and Professiona! Services Agreement Page 20
Rev. 11/ 28/ 2017
Packet Pg. 650 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric 2} Prepare for and review quality metrics at monthEy meetings- monthly 3) Deliver meeting minutes— 5 business days from end of quarterly meeting 4) Document issues discussed and agreed up on changes for moving forward— within 5 business days after monthly meeting.
5) Integrate changes into service ofFering— 10 business days from monthly meeting.
Task 6: Task Orders
Consulting and Professional Services Agreement Page 21
Rev. 11/ 28/ 2017
Packet Pg. 651 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric O erview
At times additional services related to the scope of work may be requested by the City of Redding through the issuance of a written Task Order. These services may include adding new rebates to the program after the initial startup phase, changing existing rebates based regulatory requirements, updating program forms, development or updating of program materials or websites, or other tasks deemed necessary in support of the rebate processing services.
All Task Orders must be completed and signed in a form agreeable to both parties prior to proceeding with services but subject to the terms and conditions of this Agreement. Task Orders may be negotiated with a nat-to-exceed amount or as a fxed- price and may include milestones or project deliverables and timeEines. Consultant 5tandard Hourly Billing Rates included in Exhibit B will be used when calculating pricing associated with approved Task Orders.
Responsibility Matrix
The task order functions and responsibilities are shown below.
Function City of EGIA
Redding
1 Initiate a written task order defining scope of work andlor X deli erables.
2 Determine cost and schedule associated with fulfilling the X requested task.
3 Finalize task order by signed agreement of both parties X X 4 Perform work prescribed by task order X
Note: "X" indicates responsrble party and" 5" indicates supporting party.
Timeline
Timeline and cost associated with each task order will ary based on the task order.
Consulting and Professional Services Agreement Page 22
Rev. 1 1128/ 20 1 7
Packet Pg. 652 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Exhibit B — Fee Schedule
For each calendar month, EGIA shall invoice, and The City of Redding shall pay to EGIA the fees set forth in Exhibit B according to the payment criteria and other pro isions of this Agreement. r - • .
Task 1a: Program
1 Development and Startup— Each 1 3Q, Q00' 3a, 000
Phase 1
Task 1 b: Program
Development and Startup— Each 1 13, p00z 13, 000
Phase 2
Task 2: Residential Deemed Per Rebate
5000 1Q. 95 54, 750
Z
Rebate Processin A lication
Task 2: Com- nercial Per Rebate
400 15. 95 6, 380 Deemed Rebate Processin Application
Task 3: Pro ide online
Per Month 12 1, 250 15, Q00
hosting of CommerciaE
Lighting Rebate Application Per Rebate
1Q0 10_95 1, 095
3 and Processin S stem Application
Task 3: Pro ide online
Per Month 12
hosting of Commercial
8 Q 10, 200
Custom Rebate Application Per Rebate
50 15. 95 798
and Processin S stem Application
Task 4: Program
4 Management and Reporting Per Month 12 2, 450. 00 $ 29, 4Q0 AND Tasic 5: Service
Mana ement
5 Task Order Contin enc Annual Bud et 1 25, 000 25, 000 6 Printing and Postage
Annual Budget 1 5, 00 5, 000
reimbursed at cost
Monetary compensation
7 { rebates) paid to customers Annual Budget 1 1, 50Q, Op0 $ 1, 500, aaa reimbursed at cost}
Tatal Administrative Fee for Service - Ite ns 1, 2, 3, 4, 5 Not to Exceed 1$ 5, 623 Total Reimhursement for Rebates to Customers - Items 6, 7 Nat to Exceed 1, 505, 000 Total Not to xceed I, 690,623
Minimum Monthly Rehate Processing Charge
A minimum rebate- processing fee of$ 750/ month will be charged should monthly rebate processing olume fall below the 75- rebate application minimum.
50% of payment due at initiation of Phase 1 Development and remaining SO% due at completion of Phase 1 Development.
2 50% of paymen# due at inikiation of Phase 2 Development and remaining 50% due at completion of Phase 2 Development.
Consulting and Professional Services Agreement Page 23
Rev. 11/ 28/ 2017
Packet Pg. 653 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric f 1 '
ChieF Financial Officer 180
Chief Technology Officer
L SO
Senior Director, Marketing
l SO
Senior Director, Operations 145
Senior Application Developer ll5
Creative Director 115
IT System Administratorl
l Ietwork Operations l10
Application Developer 1Q5
Staff Accountant 90
Program Manager 90
Project Manager 9p
Designerl Front End Ileveloper 90
Lead Rebate Processing/ Customer Services Supervisors 70 Rebate Processingl Customer Services Representatives 45 Support Ser ices 45
Consulting
a
d Professional Services Agreement Page 24
Rev. 11/ 28/ 20 I 7
Packet Pg. 654 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric Exhibit C -- EGIA Product description
This Exhibit C provides and overview of EGIA' s proprietary" EGIA Rebate Processing System" ( ERPS).
This Exhibit defines the framework and specific features of the tool that will be adapted to the City of Redding' s needs. Unless explicitly stated otherwise and with approval from the City of Redding, all framework and specific features defined herein will be incorporated into the RPS.
Consulting and Professional Services Agreement Page 25
Rev. 11/ 28/ 2017
Packet Pg. 655 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SCPPA Rebate Program Automation Proposal
SECTI4N 4: REBATE PROCESSING SYSTEM ( ERPS)
The EGIA Rebate Processing System ( ERPS) is designed to cost effectively process traditional mail- in applications, instant rebate coupons, bounty programs, sales staff incentives, wholesale or retail buy lowns and other inno ati e incenti es specified by program sponsors. The EGIA Rebate Processing System also provides for 24/ 7 online application submittal, on ine program management reporting and has a fully developed rebate reser ation capability that can be rapidly tailored to address utility specific program requirements.
The rebate processing system is designed to accommodate and track outside funding such as state or community block grants, local go ernment funds or to leverage funds pro ided by multiple organizations. EGIA' s rebate processing system and online application can deli er combined energy/ water rebates.
The EGlA Rebate ProcessingSystem online application includes but is not be Eimited to providing:
Ability to customize online rebate application form to incorporate and match information requested on the utility rebate application reEated to customer' s purchases and rebate data fiefds required for the utility rebate program.
Automatic confirmation acknowledgment that the application has been received ( hardcopy or email) Automatically assigning a unique rebate number for easy application tracking.
Ability for the customer to print-out a copy of their online application and acknowledgment that their application has been received.
Online rebate status information so that customers can track where their application is in the process.
Ability to rapidly modify online application form to reflect qualified energy efficiency product or program changes.
Context sensiti e online help functionality that makes it easy for customers to na igate.
Web user interface that can be customized to the utilities Web design standards and will not require the client to download any additional software in order to use the application.
A modular design that can be seamlessly incorporated into the utilities existing Web sites navigational frameworks.
Data Validation
The ERPS will support server-side validation of all form fields processed on a utility request. This will include such elements as user input fields, select options, checkboxes, radio buttons or hidden fields. The system wiil also validate on the server side for valid data type, data length, and valid character ranges as wefl as disable HTML special characters for any input fields that cannot be adequately validated, such as free form input fields.
The online application is highly secure and has been successfully audited by PG& E and Nicor Gas IT security personnel. The application employs industry leading security protocol and is not susceptible to security vulnerabilities such as SQL injection attacks, cross site scripting, cross site request forgery, and buffer overflow.
For greater detail on EGIA' s technology solution and data security arch tecture, see the " IT Application and Data Security" section of this proposal.
Rebate S stems ln Place To Validate Com liance To Pro ram Rules And Eli ibili EGIA currently administers nearly $ 500, 000, 000 in public benefit funds for large scale rebate programs co ering o er 300 utilities and water agencies. The ERPS robust database allows t e utility using their own manpower through the software solution or EGIA CSR' s as part of a fufl ser ice turnkey solution to choose qualifying models from drop down lists. Web based appEications load directly into the database minimizing rebate processor data entry. All program rules and eligibility requirements are loaded into the database before p
E e ric as Indu Qri s ss Q o
a
Packet Pg. 656 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SCPPA Rebate Prograrn Automation Proposal
the program starts. Attempts to process applications that violate the rules and requirements automatically generate error codes assuring that no incenti e checks are issued unless the error code is resolved.
Existin Rebate Processin S stem Ca aci To Accommodate SCPPA Utiii Requirements
EGIA' s strength is in its systems and years of experience processing energy efficiency and water conservation rebates. EGIA' s information technology, database management and telecommunications systems currently ha e the capacity to handle all SCPPA utility rebate program olume simultaneously and accommodate any le el of future growth.
EGIA' s Rebate Proce in S stem Provides An Audit Trail of all P ocessin TransactFons
Every time an application is touched by a rebate processor, a date is entered into the database. Each time a CSR contacts an applicant or the applicant contacts the utility or EGIA, the details of the conversation can be typed into the comments section of the desktop application rebate form. When letters are sent, the date is recorded and a pdf of the letter is electronically sa ed. When a check is mailed the date and check number are recorded in the database automatically.
p
Electrgc G ndus r es e soc tio
9 Packet Pg. 657 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SCPPA Rebate Program Automation Proposal
Rebate Processing Flow
EGIA' s rebate processingsystem has been designed to ensure accurate, timely payment of qualifying purchases and prompt and courteous fol[ow-up. It is supported by a superior database management system that significantly reduces the chance of errors by automating most of the system functions. The following two process ow diagrams depict( 1) rebate processing as a hosted software service illustrating the relationship between the ERPS solution and utility processing manpower ( With the hosting ser ice all rebate processing manpower is provided by the utility, items highlighted in yellow represent areas where utility manpower is required and ( 2) the typical process flow if EGIA were delivering a full senrice turnkey rebate processing solution. nline p a r
r o r
Appiicauon Applic ti n I II
Ra sG ners not rF.+cetved ._ _._ . _...__.,....., _....._, c rsth n 74h sinessdayv
r_.........._...._ _.._....'_""'_"'__-____
Appl caUop ROC iY d R uns noc rcx. aived withm 14
1 ( U1iAA# y) i u3iness days
Applicaffm ReeeireA I . Date/ Time recorued
ERPS updated with II uqon reeeipc
1 , •
applirant infpfmaiOrl J I . Deta en; 6¢ 6 ERPS Reaxs naa receive i wit3rin 1A 3 usifiie: cl n l _ _
Atstomated Business Rules/ ValidaEions( EGIA IT}
QualOWed Product YalYd li3ilit CusUom r :
Pu1 Chagmd Custumer eccountverified
q° '' • Item is on QP list agalnst aecount li t
I
a=' 4f ebat' a'' 1 ` ', ! Pro itled by utfli?
d' ta[ ec'`°'
k,.: ;
Wftlt n 79 ne Frame i
perwork is postmarked Addrasa Mabchea Aceou;
within XX days of insta3latlon • F stallation addre9s fsver' fied a irst aetount informaUon €
s___..._. ,._,_,_U -. .. ..., _..__._.._ Yatid Porehase bate yDocame alion j • Itam purchasetl be[ ween
Reeehned( UiYlft r) program start/ end dates E
DatsfTlme recordetl
u on input
j.,.,... _. . .,... .
W..._....,.._.----- s.__.__--_ '----'--"-___.._._......,.»....,.....»..... w_._.. , . . i Rebate Application VaEidat on( Utikity)
All ApplieaMnn FY W9 Purchase/ Instelfation Date i
Cp p Equipment Description i R ba6m App0eatlon ReaAy For Pa) r neh! Ec} uipment make, model& [ • System verifles that appiication has passed all data inspecflon/ Indades ConfPrmalGon serial numper vslidation tests
j
P e( d ia Applicafion • Equipmertt cost& tntal eost i - Uti[ ity erlfies that ell supporting documentation nas been filed.
Written cornirmatlort of prof qionai contracmr' s rrame, ; • System updates atetua to" appraved' Reba[ e IV[ mber alsa eccepted phone number& atltlress '• • UGf3ty suhmlts file to File Room lodndas So pKy
Veriry payee Ready m submltto uul in nact irnroice
i PP Verify presenee of eustamer :
i Doeameofallon signawre Reaaie tacu9 uv sace s
R quir meMs
Totalnumberotunitsinsrallea i EAIA',RSba I,
w_..._,..___-•---
cr..---_----^.,
a_ 4..,,,,_,.._,_.....__..
roo+ms ln¢ S s ln„ t . .
Conected Rebat Application Roc iv d( 1/ dllt r) . - ' - Ftetiate aHSRIIcaEion deta . ,
P Date/ time re- recorded upon receip[ xr
94EluL Ls76`1 iSC,F•.9:
P'
uvocy' oocu m nl oecision I oeee Peuaess ea nn End
p
E c G s ndus ri s ss a ion
10 Packet Pg. 658 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SCPPA Rebate Program Automation Proposal
i •
C) riin. r
f' p?!
tic t'es
1ppi; catiwr< Ar p€=t8b.
r
iI
REspUra^ etre, c. r_, yed s
V[: 31ir +.$ L. i5 ii SS Ufly9
APPI qt on R G@'lved es 5 r:sr i e` r: e>veU v;nh,,,, 14 + EGiA) u: s: ness d s
Appl cation Reoeirrad Date/ Time recorded
ERPS updaEed with
upon receipt
appliCant infqrmaion . pata entered EftPS G2r. g X n> e rGwe:, v C wiEti= n 1. t;;; 53 tc55 dVS Automated Business Rules/ uafidations( EGEA fT)
Qu lifled Produet Yalid UtiEit r Custom r ;
s::::: s:<::::: s:-.... ......... i:;: ; prCEfRs d ustomer account verified :
e. :....._... s............
Ss
ltem is on QP list against account Hst
t
s:__°::_::€?€:::€ Provided by utili3Y1
IN thin Tirn Frarne
g=''=-:'";-`=`'`;;;'; : •
Paqerwork is Pos tmarked Address Mstches AccouM'
within 60 days of iRstallation ' Ilationaddress' rsverified agairLst account fnfirma6on
i Yalid Purehase Date
Documentation Rem purchased hetween
Recei red( fGIJU program start/ end dates
i
Date/ Time recorded ,
1 upoR input
CSR- Performed Validations{ EGIA)
A[ I Application Fletdg Purchese/ InsCatEation Date
p Equipment Descrfption Re6ate Application Read r For Payme rt Equipment make, mpde!& 5ystem erifies that app[ ication has passed alE daEa inspection/ E Ineludes ConRrmat on sertaf numher vatidation tests
Page( Online Applica'tion) • Equipment cost& Yotai cosE CSR verifies lhat all su Written confirmation of proqessiona contractor' s name, ; PPorting documentation has been frled.
5ystem updates status to" approved"
Rebate Number also acceRt Rhone number& address CSR submits fiEe to FE1e Room IRcludes Suppol' tlltg
Verify payee Ready Yo submit to utilRy in next invoice
Verify presence of customer
DoCuelelttdt1011
signature Rs!_ ite sc: t s up<sa c°a
i R qu reme s
Total number of units installed R' fi t t
s Processi; S eneCOITeCt d RB6aYB Appl C N• Re ateappEieahon; da4a 6, I l 01f R. Y. d{ EGIA) a, . f ; ,
Oate/ Ume r recorded upon recelpt 3
fL, R&` ye'°: s z•, 3i..,-,.
Y '
Document Decision Oatabase Praess I Be rnn4ng/ Entl
EGIA d t
Packet Pg. 659 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SCPPA Rebate Program Automation Proposal
Sam le A lication Exce tion Codes and Au o Generated Problem Letter One of the key features of the EGIA Rebate Processing System is its automated Problem Letter generation and follow- up system. If an application is deficient, the ERPS can automatically generate a letter/ email to notify the customer that either information is missing { i. e. customer signature, receipt, etc.) or the application is declined i. e. non ualifying measure, duplicate rebate submitted, etc.). In the case of an incomplete application, once a notification letter goes out the system will automatically alert the utility or EGIA processor if the missing information is not pro ided within a specified time period. At that point a second letter/ email can be sent or processing CSR can phone the customer to remedy the deficiency.
Below is a chart listingtypical error codes and a sample auto-generated customer email notification.
I
Go p .
to ti r
I
P,P,<;:< s>:` ' INST ADD12ES5 DOES N ' C1: HE 11JATER BIL;:. ' . R
AD SALES RECEIPTAPPEARS TO BE ALTERE M R
P}T CUSTOINER APPLIED NJlG k :,•`: .'; : r "•<;; 1G[:; D BC SUBMITTE WATER BI L IS OVER 6 MONTHS OL M R
Ce ` k,===. ' e CUSTOME6• NAME, ISERVIC DR S:Sfiil[SSINGFRO BILLx:":'":', IuF; F:::,=; R '':
CD CUSTOMER ASKE TD dELE7E REBATE M D
CR ' a ;: NEEI3CU5( JME.RS" SAl.ES"ftECEIP.. . ' x`=: x:`<'`:`<: M M DUPLICATE MEASURE p p
N ` i ;= NAME ON. 4PRLICAZION DOESN.`T AAA='-[ i!]F1ME ON BI ; H::;;;;:;` M " `' FO NO RESPONSE FROM CUSTOM1/ ER M D
IA ,' '' ND INSTAL" ATION'.°F4D RESS ON RE . . ; E. <,: ' x ' , r , M' ' s,:-:;.
IR 12ECEIPT fS ILLEGIBLE M a
MN ,.. ..'':°. ' , M4OEL NI MBER' t f Tc il RECEIPT °.. t+l; t NM NO CUS70MER NAME DN WATER SILL M R
NP : i ' N( _ RCMASE PRI'C°i- _ PP IE i ;
NQ NON- QUALIFYING MODELNUMBER A p
NR . _ II I PAPERWOIRK, ; P ' IDED BY 1 T ;. hp:<. e
p.." : y
NV N ED FURTHER VERIFICAl10N OF QUALIFICATIONS M R
QP ... .` ' ':-:`: € P17. HASED, BEFOR A RO, R,4M . OLt;:"`. f. "_. " _ D
OR COPY OF SALES RECEIP715 MISSINC
s+? Pll. „ S U OVER ONE, Y . ' f
PF PROOF OF FULL PAYMENTR£ QUiREC 5'i0etrt[ arme n:
14148 APPLE GRRVE CT
a, • WR . I L"NEEDEQ FOR: Afii:. COROHA, CA 92880 i
PP POSZNIARK 90 AYS AFTER ONLINE
C '_ N0: 1lJAL=I Y,IHG CITY 1
Rd NO SALES ATE ON FtECEIPT DARREH WILLWNS
13"_ @ Ef1UIRED. EFFIGE JCY1 Nb TMET e
14148APREGROVEC7
RO RESIDENTIAL APPLICANTS ONLY COROFU CA92881i
RT. a ` USTOMEF2 N,Ea.AA RCHAND[ S
SA NO SERVICE A DRESS ON WRTER BI DearDARREHdtlILLIANBS SI >_ :' _ [ NUAL3fl, STOR t,,'. '' :
UD UT1LffY DECLINE We have receivetl your appfiration tor6 e SoCel WeterSma t RebaEe Proqram. I1nLortnnale y, we annot UP l1RC SE PRICE k S51L ROM`RE e tl e processing M yo r ate application u l you p[ovtCe e doannenhation r esletl pelow.
UZ ZIP CODE OES NOT BELONG TO SEF
In rnder to verny me sialus o# yrnu vr er sgvlrP, please pr vide a capy a a recent vefer bll shavring tl e accaun[ hoWefs name, lhe se riw adtlress anG 4 e accaw l rnunLe.
The approprtate QocwneMalin must be e9anetl on a before JWy 26, 2045. If tt e doaar alian s not receired by Ihe date CsteA above, yaur appGraSon oi Ua prflcessed.+ u l exPue and he cenoeled.
Hoarever, yoa can reapprykv e tebate ihrough Ihe SoCat WateE$ mart vvQbsite ai www.saralwaters nart.can if yau obtai the rt ssln9 aur ntaGon ar make e D dwse al a later Aate.
To be e]ig 0e for a reDale, tha device must be purtl ased and appti tions wN[ all equueA CocumenF- aGon musl be pastEnaAcetl v ith ihe pro am period
Pleese be aware lhat hmding Ls Ilrn{[ed an6 submi g a re0a[e appbcation does nal S rartee tl a/ ym wip ire a reba[e, B elefore we e xaurage you 10 su6m[I 1Re m sng doamen tion, w raapqy as soo as P hle.
7liankyou,
The Adehopofiian Waier Oistrid R ate Processa g C tu
SoC Wal rt Rebale Ropiam
3800 Walt Avenue Suihe 165
Sazramrntn, Cq 95B2t
Phone:[ 688y 3763374
F2pc( BOOf 50fr9073
Ip E ec ric s Ir ius r es Ass c i t
12 Packet Pg. 660 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SCPPA Rebate Program Automation Proposal
Rebate In oice and Check Cuttin Process
The following process flow diagram depicts the typical rebate invoicing and chec C cutting process that is included in both the Hosted Service and the Full Service for the Clty of Redding.
Ip Eiectrrc Inc u e A so at or13
Packet Pg. 661 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SCPPA Rebate Program Automation Proposal
Rebate Ch tl s ' Q.` R e¢'',
@:,..> N Ys'4A,fl' S4 K`§ 7' F' f E MaiEed To aoaegs7,, s. k r , r: a $
AppliCanRs( EGU jls' emsa'4 i ;
OperatEons) ; e R 1; s
Check maited to $ 1, s l,,;;& 3 applicanGs'
d,}°
4 t}1b0r,; r
addresses p- " ' 1' fd tOz r` C .
g ' S ;
y.
e r :
s— u
r' s:` b:"+';%.
y '
6 a"Id i 6 l0ai z" r ' f y
d a, 4k;( 1¢ F.w d P
fE' oce:ss,ln. e11`
1 ia rreb a'-' M' Re rts Genrrat Reconcil d& Distributed c b ' w'H21 ABdR k i'm' j' 9,
X y. ,,
Rebate tracker is updated with paid data and
ba T
y'$ distributed weekly
Dai4y pmducUon reports are reconciled with rebate
tracker and disVibuted
Program goal is cred'rted with rebate amount
Fp s Transf R uest
DaiEy progress meter updated( lltility Webiste) Program sponsor transfers funding to EGIA for invoice amou) Monthly progress reports( Utility data group)
Monthly program reports( Utility Progra Manager
Monthly rebate transaction data uploaded fpr
r.i' a.' e' 81 . . . .
k:._. utility monitoring and Q/ A( Utitfty data group} . i .
Funds Araflable( F,GI!# Finanes) ey
EGlA has funds a ailabte for payments of applications
Appfica Submits Ch ck
To Bank For Fayme J
Rebate Appiieatlon Data( EGIA IT)
Gheck that rebate amount matches inwice AvbDmat d ProC 58 Compar s CNeek To Rebate Verify rebate is still in approv siatus Yeri iCatlpn L,ISt J r
Yes fi Ye. C r,
R co Fliatawe
Fundn Releas d _
Monthly reconciliation inwfrz detaits any changes p
nk
e;
duringfinalva]idation i
YC ti
Rebate C6eek Creat d( EGIA Ffnance) EGIA tnreskigat s And Resohres tssues Funds drawn from EGlR 6ank Account J J
gv' 1:. Tv ciEy; o
r-,---*,
E ( .. Doewnent Bank Decislon EAPS Prncess 9eginnin/ End Ip E ectric C as Ind stries ss c o
14 Packet Pg. 662 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SC PA Rebate Program Automation Proposal
Fraud Prevention and Mifigation
When EGIA is deli ering rebate process as a comprehensi e full service, we use an assortment of different methods described below to pre ent and detect fraud, based on the source of the potential fraud. If the utility is using EGIA' s hosted sol tion, they may want to consider similar steps to safeguard rebate program funds.
CO SumerS - For this type of rebate program there is the potential for customer fraud in several areas. A c stomer could copy their receipt and gi e it to another person to claim a rebate, a customer could attempt to get more than one rebate for the same de ice and in rare cases a customer can alter the rebate check with a bog s dollar amount greater than the authorized rebate.
The EGIA ER S EGIA' s tracks customers by name, address and measure making it virtually impossible for a customer to obtain more than one rebate for the same measure. To deal with receipt copies given to another person the ERPS can capture a transaction number or in oice number from the receipt. The database gives an error message if a rebate processor attempts to enter a receipt number that had already been used by that customer at that address. To prevent check alteration, EGIA use Positive Pay, a Wells Fargo product that compares e ery check presented for payment to a file of issued checks. The bank emails EGIA daily to confirm any exceptions. Any check that is presented to Wells Fargo that is not on the list of checks issued or is for a different amount will cause an exception email to be generated. EGIA would receive the email gi ing us the opportunity to review the check and decide if it should be paid or not.
Orga zatlo - At EGIA we pre ent the potential for fraud within o r organization by carefully segregating duties.
EGIA Chief Financial Officer ( CFO) invoices customers and receives payments for rebate funds. The senior bookkeeper prepares the deposit and records the receipt of funds in the general ledger. The CFO records the receipt of the funds in the invoice og file wh ch is not part of the general ledger. EGIA' s Information Technology Department runs the database to generate the rebate checks based on the in o ce. The senior bookkeeper prints the rebate checks. The mail processing department stuTfs the checks and ma91s them after comparing the number of checks recei ed to the in oice. Rebate programs have zip code restrictions so no employee can enter a rebate for themselves and use their own address. The senior bookkeeper cannot enter a rebate. The CFO reviews all rebate bank accounts each day and EGIA carries insurance against employee theft.
Returning Unspent Rebates
When EGIA provides full service rebate processing, we close{y monitor the un ashed check logs. Once a check becomes " stale", typically after fi0 days, EGIA contacts the customer to attempt to reissue the check. EGIA strives for zero unclaimed property for each of the rebate programs it administers. EGIA' s philosophy is to do e erything in its power to get the check inta tha applicant' s hands. Current program experienca is that about
99. 5% of issued checks are cashed within 60 days of issue date. For the 0. 5° that are not cashed, EG1A CSR' s call the c stomer to confirm their address and make arrangements to void the original check and reissue a check, if a propriate. It is our experience that irtually all reissued checks get cashed, so with our roacti e, hands n process there is ery little unclaimed property.
Howe er, in the event that the customer cannot be reached and checks remain uncashed for typically 9p days, EG1A will document the occurrence, report information to utility management and remit the outstanding funds back to the utility sponsor or upon instructions from utility program management roll the funds back into the program.
Reser ation S stem for Multi-Famil Rebates
The EGIA Rebate Processing System is configured to suppork a reservation or pre appro al process that reserves funds for rebate applicants and assures that program commitments never exceed authorized budgets. The system automatically tracks program expenditures and provides real- time updates on the status of rebate funds claimed and remaining in both percentage and dollar terms. This information is accessible to the utility program Ip lectric as industrie Ass ia r
Packet Pg. 663 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SCPPA Rebate Program Automation Proposal
managers through the online reporting portal ( see example of the Metropolitan Water District SoCalWaterSmart report below). EGIA currently operates a comprehensi e reservation/ budget tracking system for all of the water agencies participating in the Metropolitan Water District Commercial Rebate program.
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order to recei e an online reservation, consumers simply isit the online application, fill in a simple pull-down menu toensure eligibility andpro ide their contact information (.e. customer name, street address, email, utiiity account number and measures to be instaAed etc.). The system will then auto calculate the ant cipated rebate amount and generate aconfirmation page providing aunique reservation number and funds reser ed. Once the customer completes and submits the application, the reservation system blocks the amount requested for a period (.e. 60, 90, 120 days). If a completed application is not recei ed within the acceptable timeframe, the funds allocated tothat customer'sreservation will be cancelled, with those funds being reapplied tothe next a ailable consumer. If consumer interest in the program exceeds the le el of available program funds, the reservation system is equipped with a waiting list capability, allowing consumers toadd themselves tothe list on a first come first serve basis. The
ERPS reservation process will auto generate anemail notifying the waiting list consumer thatfunds are now a ai able, confirm their interest and automatically issue a reservation confirmation sothat they can proceed with the r purchase and recei e a rebate. lp
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Packet Pg. 664 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SCPPA Rebate Program Automation Proposal
Customer Carej Call Center Operation
When delivering rebate processing as a full service, EGIA provides comprehensive ca11 center support. To assist management and ensure high quality service, EGIA' s call center is equipped with silent monitoring. Leveraging this system monitoring capability, EGEA management is able to periodically assess CSR call handling perFormance and through ongoing program training and evaluation is able to ensure delivery of quality customer interaction, at all times. EGIA' s call center system is also equipped with substantial call tracking, cal! reporting and automated calf redirection capability. For exampfe, if the CSR group assigned one utilities customer calls is experiencing heavier than normal calf volume, the system can be programed to auto- direct overflow calls to other available cross trained CSR' s throughout the call center. This enables call peaking to be handled on the fly with no loss of service or reduction in overall call center performance.
Typical fuli service call center acti ity includes:
1. EGIA maintains a staffed, dedicate bi- lingual customer services call center during normal business hours of 8: 00 a. m. to 5: 00 p. m. PST, Monday - Friday( except federal holidays}.
2. EGIA establishes a dedicated toll-free telephone line to enable utility customers to automatically retrieve general program information, ask program related questions and inquire into rebate application status.
3. EGIA Customer Service Representatives { CSRs} return all phone messages within 24 hours of receipt, within the business week. EGIA provides after- hours voice mail services for customers calling outside of normal business hours.
4. To maintain high quality customer service and provide accurate program information, EGIA CSRs receive weekly program updates and have online automated informationai resources readily a ailable on their desktop workstation to assist in answering customer questions and tracking customer inquiries. CSRs also have an auto transfer capability to seamlessly forward complex or sensitive calls to higher level personnel within the office to assure customer issues are handled with utmost care and professionalism.
5. EGIA' s call center is equipped with industry leadjng call center management and tracking software that enabEes comprehensi e call monitoring and call reporting. At the outset of the program EGIA meets with utility program management to determine what le el of cali center activity reporting is desired by the utility.
6. EGIA recognizes the importance of providing superior customer service during every customer touch point. EGIA provides in lepth call handling, delivered through a highly trained and program dedicated team of CSR' s. EGIA CSR' s focus not only on addressing the customers' immediate inquiry, but also seek to further educate and inform customers regarding utility rebate programs, In support of new program launches, seasonal or special promotional activities, the EGIA call center supports outbound telemarketingto targeted consumers and trade allies.
7. EGIA maintains customer service support, after the termination of this program, until all rebate requests pending have been resolved.
Pro ram Performance Re ortin Dashboard
EGIA has de eloped and deploys a highly flexible online, secure and password protected real-time reporting dashboard for its utility clients. The reporting dashboard is designed with standardized reporting that provides program performance tracking information typically required by utility program managers, and can be customized to provide program management with the precise in#ormation and format required. In addition to the graphical and tabular charts illustrating program performance, utility program managers will also have 24/ 7/ 365 access to all utility specific data held in the EGIA ERPS system. This data can be downloaded at any time into an excel file for full utility reporting and data anafysis. p
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17 Packet Pg. 665 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SGPPA Rebate Program Automation Proposal
EGIA' s reporking system is highiy flexible and user friendly and enables the online deli ery of graphs and program analytics that allow utility program managers to gauge program participation le els, historical trends and other information that may be used to assess and refine the program.
Sample Customizable pashboard Reports
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Packet Pg. 667 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SCPPA Rebate Program Automation Proposal
ERPS IT Architecture and Da#a Sec ri
EGIA has developed and maintains a very robust database management system that can track every element of rebate programs administered by the utility through an EGIA application hosting solution or directly from EGIA through full ser ice delivery. The ERPS can be easily modified to incorporate any unique future requirements.
The database supports the development and delivery of all program reporting requirements and product and consumertracking reports.
Database security and the safeguarding of sensitive customer data is a high priority. The most reliable, rigorous security systems are used to protect program and customer data. EGIA systems are protected by multiple firewalls, SSL security and data encryption.
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The following is an overview of EGIA' s Information Physical Technology Architecture. EGIA has deployed a fully redundant IT infrastructure utilizing IT industry best practices, and a state of the art technology stack to ensure the greatest level of data security available while maintaining high levels of performance and reliability.
EGIA' s information technology team has develaped an all- inclusive database that maintains the technological security and integrity of the database and accurately reports gathered data. The database features include, but are not limited to:
Automated problem and decline email and letter generation Automated rebate status updates for consumers
Automated safeguards that reduce any deliberate or unintentional misuse of the program by applicants to a oid fraud ( i. e. duplicate receipts and serial numbers) A data entry screen that is modeled after the program specific application for fast and accurate data entry
Queries that can be written to ofFer any type of reporting from a! I program information Storage of all consumer and product information
Rebate check generation interface
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20 Packet Pg. 668 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SCPPA Rebate Program Automation Proposal
Network 7raffic Anomaly Detection
Systems are acti ely monitored for performance, to ensure uptimes and rEliability requirements are m eet.
Data is fully encrypted utilizing 256-bit Encryption. All sensitive data is encrypted and backed up to a secure o f-site location to protect against any system failure. 1PSiC VPN( aes 256 ENCRYP110 i
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7he consumer portal is a secure web based application where utility customers access the onlinE rebate application and rebate status information. The online application portal is customizable to accommodate unique utility branding. Typically the consumer online application wil! be linked form the utilities current program website. Additionally thE utility processing and reporting Qortal is a secure web based a plication that enables utility rEbate processors to re iew, validate and approvE applications and utility program managers to have access to all program data through the real-time program reporting dashboard. All access is role based and can bE authorized by the utility rogram administrator.
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22 Packet Pg. 669 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SCPPA Rebate Program Automation Proposaf
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The following diagram depicts the EGIA high level application communication flows. The transactional data flow is captured at various points. The database where customer data reside is cons9dered critical, and all steps are taken to ensure that security at no time is compromised. Data at rest is encrypted in Advance Oracle databases.
All systems are firewalled. The utility program managers will ha e access to the on- line reporting porta{. This allows real time reports to be generated by the utility program administrators. The detailed level reporting is configurable and can be tailored to meet specific utility management requirements. pplication Architecture
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23 Packet Pg. 670 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric SC PA Rebate Program Automation Proposal
Securi Authentication Aut# rization and Accountin
User Accourrt Administration
Microsoft Active Directory is utilized for user account administration. User accounts are stored and are synchronized between the Primary and Secondary domain controllers, for redundancy.
S rSterY1 LOgs
Webserver system, application logs and SMTP logs are stored on the local hard drives of the servers jn the defauft paths.
System Log Process
EGIA implements Nagios reviewing applications that automate alerts and quickly filter key Event ID codes, alerts, and reports to the appropriate personnel.
System ogs are Storage
System Event logs are stored using the built- in process of the applications and operating systems. Windows Server stores the logs on the local hard drives accessible only to Domain Administrators or Local Administrators.
SQL logs are stored on local hard drives in different locations System Log Re iew
Default viewers are used according to the applications and operating systems. ISA has its awn default viewers for Reports and Alerts. Windows Servers Event Logs are viewed using System Manager. IIS serriices are viewed using fVotepad. Managed services and/ or hosting #acilities are being reviewed at this time. Senior EGIA IT employees are used to review log files
Vulnerability M_anagement Prog am
Website Vulnerability Testing
EGIA is currently working with VeriSign to perform penetration testing and vulnerability tests, on a daily basis.
Anti irus & Anti-Spyware
Antivirus currently deployed on the network is Symantec End- point antivirus Security Patch Management
Currentky evaluating Kaseya, Microsoft System Center, and Managed Services ( outsourcing) to enhance patch management_
Svstem and Data Reco ery Program
System Reco ery
EGIA utilizes VMWare for high redundancy, and failover. The EGIA systems can failover to our secondary VM cluster at any point in time. Recovery time is very fast, and in most cases, transparent to our users Application Reco ery
Application recovery is executed us3ng the disk to disk backup system.
Reca ery Time& Recovery Point
Recovery times are same day or next using the local backup device p
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24 Packet Pg. 671 Attachment: Previous Staff Report - 02-15-22 - 4.5(b)--Agreement with EGIA for Rebate Processing Services (4.5(b)--Approve Redding Electric
CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: June 18, 2024 FROM: Nick Zettel, Director of ITEIVI NO. 9. 5( b) Redding Electric I7tility
APPROVED BY***
1c ct c, yrectc ii' e in tri ttt32ity t,(;? t 2 te r , ; ' rr 6,' 1' 1' C}? nzettel@cityofredding. org btippin@cityofredding. org
SUBJECT: 9. 5( b)-- Consider Professional Services Agreement with Self Help Home Improvement Project, Tnc. ( SHHIP) for Administration of Redding Electric Utility' s Residential Electrification Assistance Program.
Recommendation
Authorize and approve the following:
1) Authorize the Mayor to execute a contract in an amount not to exceed $ L2 million with the Self Help Home Improvement Project, Inc. for a three- year term with two, one- year extension options to implement and administer the City of Redding Electric Utility' s Residential Electrification Assistance Program; and
2) Authorize the City Manager to approve contract amendments or extensions in accordance with the Agreement.
Fiscal Impact
Funding for this program will be sourced from the Public Benefits Program and Low Carbon Fuel Standards funds for building electrification and transportation electrification measure installations, respectively. Both funds are sufficiently resourced to fund $ 400, 000 annually, or
1. 2 million for the three- year program.
Alte native Action
The City Council ( Council) may chaase na to approve the contract and provide alternate direction to staff.
Backg ound/AnaZysis
On September 21, 2021, Council approved Redding Electric Utility' s ( REU) Demand- Side Management Integrated Resource Plan ( DSM-IRP), transitioning the current Customer Program Portfolio from energy efficiency to electrification programs effective July 1, 2022. Current electrification programs offered include:
Packet Pg. 672 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's Report to Redding City Council June 12, 2024
Re: 9. 5( b)-- Residential Electrification Assistance Program Page 2 Residential Programs:
o Building Electrification Rebates: Heat Pump Water Heaters and Heat Pump Clothes Dryers;
o Single-Family New Construction Rebate: Heat Pump Equipment ( Space and Water Heating); and
o Transportation Electrification Retail Vouchers ( point- of-sale incentives): IncomeQualified Electric Vehicles and Income- Qualified E- Bikes.
Commercial Programs:
o Building Electrification Rebates: Heat Pump Water Heaters; and o Transportation Electrification Rebates: DC Fast Charging Stations and Demand Fee Credit.
Staff regularly reviews the Customer Programs Portfolio to ensure the programs continue to provide value to the community while meeting the objectives of the DSM- IRP. During the last review period, staff identified a need to deliver programs that help remove barriers for eustomers with affordability concerns. Many custoiners typically cannot afford to take advantage of new technologies, leaving them with aging gas infrastructure and less efficient appliances. As a result, when natural gas prices continue to climb, these customers will be faced with a higher energy burden. As California moves toward grid decarbonization, it is incumbent upon utilities to equitably promote utility bill savings and overall emission reductions to ensure that those vulnerable communities are not disproportionately impacted by the energy transition.
The California Air Resources Board' s Priority Populations Map identifies Redding as a lowincome coinmunity. Additionally, the federal Climate and Economic Justice Screening Tool designates 12 census tracts in Redding as disadvantaged communities, qualifying the City for federal program support. This underscores the importance of creating equity programs for the most underserved community members as the state continues its push to decarbonize the grid.
In response, REU staff developed the Residential Electrification Assistance Program, an incomeeligible, direct install program. This program removes gas appliances and replaces them with efficient electric measures ( fuel- switching or electrification) at no eost to the customer, reducing barriers for our most vulnerable community members.
Furthermore, this program fits within the spending requirements of the Public Benefits funds. Per Public Utilities Code § 385( a)( 4), one of the four categories that funding can be spent includes Services provided for low-income electricity customers, including, but not limited to, energy efficiency services, education, weatherization, and rate discounts." Due to its unique qualifications, REU pursued a contract with Self Help Home Improvement, Inc. ( SI I-IIP), a 501( e)( 3) non- profit organization, that specializes in administering low-income weatherization programs for federal, state, and locally funded programs. SHHIP holds all contractor licenses and certifications to perform the specified scope of work. Furthermore, SHHIP previously implemented REU' s Low Income Energy Efficiency Program ( LIEEP) from 2017- 2022. LIEEP provided weatherization and energy efficiency upgrades to income- qualified customers at no cost. By partnering with SHHIP, REU was able to help over 2,200 customers through the LIEEP Program from 2017- 2022, saving an estimated lifetime energy savings of 21, 000,000 kWh and reducing carbon emissions by 4,600 metric tons of carbon dioxideequivalent.
Packet Pg. 673 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's Report to Redding City Council June 12, 2024
Re: 9. 5( b)-- Residential Electrification Assistance Program Page 3 Staff submitted a Request for Proposal Bypass to the City' s Purchasing Officer, who has reviewed REU' s justification and affirmed that SHHIP is uniquely trained and qualified to administer public funds for low-income electrification programs.
Staff has worked with SHHIP to develop a contract for the Residential Electrification Assistance Program targeting a three- year term not to exceed $ 450, 000 per year, with the option to extend the Contract in successive one- year increments until all funds are expended. The Program is expected to last four years with an average expenditure of$ 400, 000 per year.
Key components of the Residential Electrification Assistance Program are as follows:
Leverages other funding sources from other qualifying state and federal programs; Removes fossil-fuel appliances and replaces them with efficient electric equipment, including heat pump water heaters, heat pump space heating and cooling systems, induction cooktops, and heat pump clothes dryers;
Includes eligible efficiency upgrades ( for example, upgrading electric resistance equipment with heat pumps or induction technologies) to reduce energy consumption of existing electric equipment;
Supports electric vehicle ownership by providing cost- effective charging solutions ( for example, installing circuit splitters, etc.);
Includes a11 income- qualified REU customers, including owners and renters residing in single-family and multi-family dwellings; and
Income requirements align with other programs currently being offered by REU.
SHI-IP is prepared to launch the Residential Electrification Assistance Program on July 1, 2024.
Envi onmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.
Council Prior ity/City ManageN Goals
Government for the 21St Century— `Be relevant and proactive to the opportunities and challenges of today' s residents and workforce. Anticipate the future to make better decisions today."
Attachments
Professional Services Agreement- SHHIP
Packet Pg. 674 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's
CITY OF REDDING
CONSULTING AND PROFESSIONAL SERVICES CONTRACT
THIS CONTRACT (" Contract") is made at Redding, California, by and between the City of Redding (" City"), a municipal corporation, and Self Help Home Improvement, Inc. (" Consultant" or " SHHIP") for the purpose of developing and implementing a low-income direct install electrification program, Consultant and City are hereinafter referred to individually as a" Party" and collectively as the " Parties."
RECITALS
WHEREAS, City does not have sufficient personnel to perform the services required herein thereby necessitating this Contract for personal services.
WHEREAS, California Government Code sections 37103 and 53060 generally provide that a municipality may contract with any specially trained corporation for special services relating to administration if such corporation is specially trained, experienced and competent to perform the special services required.
WHEREAS, pursuant to Redding Municipal Code (" RMC") § 4. 20. 120, bidding is unnecessary because the services acquired herein require a peculiar or specialized skill.
WHEREAS, Consultant is a 501( c)( 3) which, amongst other offerings, provides specialized energy efficiency services to income qualified customers on behalf of utilities.
WHEREAS, in light of its experience, training and capabilities, Consultant is uniquely qualified to provide weatherization program administration services to the City of Redding.
WHEREAS, Consultant is designated entity by the State of California to provide alike services and has obtained and may access other funding sources, enabling Consultant efficiently administer Consultant' s duties under this Contract.
NOW, THEREFORE, the Parties covenant and agree, for good consideration hereby acknowledged, as follows:
SECTION 1. CONSULTANT SERVICES
Subject to the terms and conditions set forth in this Contract, Consultant shall provide to City the services described in Exhibit A, attached and incorporated herein. Consultant shall provide the services at the time, place and in the manner specified in E chibit A SECTION 2. COMPENSATION AND REIMBURSEMENT OF COSTS
A. City shall pay Consultant for services rendered pursuant to this Contract, at the times and in the manner set forth in Exhibit B, attached and incorporated herein, in a total Consulting and Professional Services Agreement Page 1
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Packet Pg. 675 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's amount not to exceed one million two- hundred thousand dollars ($ 1, 200, 000) over the initial contract term (" Initial Term"). Subsequently, should the City and Consultant agree to extend the contract term, City shall pay Consultant an additional total amount not to exceed four hundred fifty thousand dollars ($ 450,000) per Renewal Term. This sum includes all out- of-pocket travel, lodging and incidental expenses incurred by Consultant that are reasonably associated with the provision of services under this Contract. The payments specified herein shall be the only payments to be made to Consultant for services rendered pursuant to this Contract.
B. Consultant shall submit monthly invoices to City for work completed to the date of the invoice. All invoices shall be itemized to reflect the employees performing the requested tasks, the billing rate for each employee and the hours worked.
C. All correct, complete and undisputed invoices sent by Consultant to City shall be paid within thirty ( 30) calendar days of receipt.
SECTION 3. TERM AND TERMINATION
A. The City and Consultant agree to the term of the contract for three ( 3) years from the Effective Date of the contract. Consultant shall commence work as of the Effective Date and complete said work no later than three years from the Effective Date, unless terminated earlier in accordance with this Agreement or otherwise amended by agreement of both Parties. The Agreement may be renewed for two ( 2) successive one ( 1) year renewal terms ( each, a " Renewal Term") by mutual agreement of the Parties in writing at least one hundred twenty( 120) days prior to the expiration ofthe Initial Term or any Renewal Term, as applicable. Parties shall mutually agree to any additional terms and conditions or fee changes applicable to each such Renewal Term.
B. If Consultant fails to perform its duties to the satisfaction of City, or if consultant fails to fulfill in a timely and professional manner its obligations under this Contract, then City shall have the right to terminate this Contract effective immediately upon City giving written notice thereof to Consultant.
C. Either Party may terminate this Contract without cause on thirty ( 30) calendar days' written notice. Notwithstanding the preceding, if the term set forth in Section 3. A. ofthis Contract exceeds ninety( 90) calendar days in duration, Consultant' s sole right to terminate shall be limited to termination for cause.
D. Consultant hereby acknowledges and agrees that the obligation of City to pay under this Contract is contingent upon the availability of City' s funds which are appropriated or allocated by the City Council. Should the funding for the project and/ or work set forth herein not be appropriated or allocated by the City Council, City may terminate this Agreement by furnishing at least thirty ( 30) calendar days' written notice of its intention to terminate. In the event of a termination pursuant to Consulting and Professional Services Agreement Page 2
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Packet Pg. 676 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's this subdivision, Consultant shall not be entitled to a remedy of acceleration of payments due over the term of this Agreement. The Parties acknowledge and agree that the power to terminate described herein is required by Article 16, Section 18, of the California Constitution, and that constitutional provision supersedes any law, rule, regulation or statute which conflicts with the provisions of this Section.
E. In the event that City gives notice of termination, Consultant shall promptly provide to City any and all finished and unfinished reports, data, studies, photographs, charts or other work product prepared by Consultant pursuant to this Contract. City shall have full ownership, including, but not limited to, intellectual property rights, and control of all such finished and unfinished reports, data, studies, photographs, charts or other work product.
F. In the event that City terminates the Contract, City shall pay Consultant the reasonable value of services rendered by Consultant pursuant to this Contract; provided, however, that City shall not in any manner be liable for lost profits which might have been made by Consultant had Consultant completed the services required by this Contract. Consultant shall, not later than ten ( 10) calendar days after termination of this Contract by City, furnish to City such financial information as in the judgment of the City' s representative is necessary to determine the reasonable value of the services rendered by Consultant.
G. In no event shall the termination or expiration of this Contract be construed as a waiver of any right to seek remedies in law, equity or otherwise for a Party' s failure to perform each obligation required by this Contract.
SECTION 4. MISCELLANEOUS TERMS AND CONDITIONS OF CONTRACT A. City shall make its facilities accessible to Consultant as required for Consultant' s performance of its services under this Contract, and, upon request of Consultant, provide labor and safety equipment as required by Consultant for such access.
B. Pursuant to the City' s business license ordinance, Consultant shall obtain a City business license prior to commencing work.
C. Consultant represents and warrants to City that it has all licenses, permits, qualifications and approvals of any nature whatsoever that are legally required for Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Contract any licenses, permits and approvals that are legally required for Consultant to practice its profession.
D. Consultant shall, during the entire term of this Contract, be construed to be an independent contractor and nothing in this Contract is intended, nor shall it be construed, to create an employer/ employee relationship, association, joint venture Consulting and Professional Services Agreement Page 3
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Packet Pg. 677 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's relationship, trust or partnership or to allow City to exercise discretion or control over the professional rnanner in which Consultant performs under this Contract. Any and all taxes imposed on Consultant' s income, imposed or assessed by reason of this Contract or its performance, including but not limited to sales or use taxes, shall be paid by Consultant. Consultant shall be responsible for any taxes or penalties assessed by reason of any claims that Consultant is an employee of City. Consultant shall not be eligible for coverage under City' s workers' compensation insurance plan, benefits under the Public Employee Retirement System or be eligible for any other City benefit.
E. No provision ofthis Contract is intended to, or shall be for the benefit of,or construed to create rights in, or grant remedies to, any person or entity not a party hereto.
F. No portion of the work or services to be performed under this Contract shall be assigned, transferred, conveyed or subcontracted without the prior written approval of City. Consultant may use the services of independent contractors and subcontractors to perform a portion of its obligations under this Contract with the prior written approval of City. Independent contractors and subcontractors shall be provided with a copy of this Contract and Consultant shall have an affirmative duty to assure that said independent contractors and subcontractors comply with the same and agree to be bound by its terms. Consultant shall be the responsible party with respect to all actions of its independent contractors and subcontractors, and shall obtain such insurance and indemnity provisions from its contractors and subcontractors as City' s Risk Manager shall determine to be necessary.
G. Consultant, at such times and in such form as City may require, shall furnish City with such periodic reports as it may request pertaining to the work or services undertaken pursuant to this Contract, the costs or obligations incurred or to be incurred in connection therewith, and any other matters covered by this Contract.
H. Consultant shall maintain accounts and records, including personnel, property and financial records, adequate to identify and account for all costs pertaining to this Contract and such other records as may be deemed necessary by City to assure proper accounting for all project funds. These records shall be made available for audit purposes to state and federal authorities, or any authorized representative of City.
Consultant shall retain such records for three { 3) years after the expiration of this Contract, unless prior permission to destroy them is granted by City.
I. Consultant shall perform all services required pursuant to this Contract in the manner and according to the standards observed by a competent practitioner of Consultant' s profession. All products of whatsoever nature which Consultant delivers to City pursuant to this Contract shall be prepared in a professional manner and conform to the standards of quality normally observed by a person practicing the profession of Consultant and its agents, employees and subcontractors assigned to perform the services contemplated by this Contract.
Consulting and Professional Services Agreement Page 4
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Packet Pg. 678 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's J. All completed reports and other data or documents, or computer media including diskettes, and other materials provided or prepared by Consultant in accordance with this Contract are the property of City, and may be used by City. City shall have all intellectual property rights including, but not limited to, copyright and patent rights, in said documents, computer media, and other materials provided by Consultant. City shall release, defend, indemnify and hold harmless Consultant from all claims, costs, expenses, damage or liability arising out of or resulting from City' s use or modification of any reports, data, documents, drawings, specifications or other work product prepared by Consultant, except for use by City on those portions ofthe City' s project for which such items were prepared.
K. Consultant, including its employees, agents, and subconsultants, shall not maintain or acquire any direct or indirect interest that conflicts with the performance of this Contract. Consultant shall comply with all requirements ofthe Political Reform Act Government Code § 8100 et seq.) and other laws relating to conflicts of interest, including the following: 1) Consultant shall not make or participate in a decision made by City if it is reasonably foreseeable that the decision may have a material effect on Consultant' s economic interest, and 2) if required by the City Attorney, Consultant shall file financial disclosure forms with the City Clerk.
I. Incorporation of Recitals. The rnatters recited above are hereby incorporated into and made part of this Contract.
SECTION 5. INSURANCE
A. Unless modified in writing by City' s Risk Manager, Consultant shall maintain the following noted insurance during the duration of the Contract:
Covera e Required Not Repuired
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers' Compensation and Employers' Liability X
Professional Liability( Errors and Omissions)
Place an" x" in the appropriate box)
B. Coverage shall be at least as broad as:
l. Insurance Services Office form number CG- 0001, Commercial General Liability Insurance, in an amount not less than$ 1, 000, 000 per occurrence and 2, 000, 000 general aggregate for bodily injury, personal injury and property damage;
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Packet Pg. 679 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's
2. Insurance Services Office form number CA- 0001 ( Ed. 1/ 87), Comprehensive Automobile Liability Insurance, which provides for total limits of not less than $ 1, 000,000 combined single limits per accident applicable to all owned, non- owned and hired vehicles;
3. Statutory Workers' Compensation required by the Labor Code of the State of California and Employers' Liability Insurance in an amount not less than 1, 000, 000 per occurrence. Both the Workers' Compensation and Employers' Liability policies shall contain the insurer' s waiver of subrogation in favor of City, its elected officials, officers, employees, agents and volunteers;
4. Professional Liability (Errors and Omissions) Insurance, appropriate to Consultant' s profession, against loss due to error or omission or malpractice in an amount not less than$ 1, 000, 000.
5. The City does not accept insurance certificates or endorsements with the wording " but only in the event of a named insured' s sole negligence" or any other verbiage limiting the insured' s insurance responsibility.
C. Any deductibles or self-insured retentions must be declared to and approved by City.
At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self- insured retentions as respects the City, its elected officials, officers, employees, agents and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claims administration and defense expenses.
D. The General Liability shall contain or be endorsed to contain the following provisions:
1. City, its elected officials, officers, employees, and agents are to be covered as additional insured as respects liability arising out of work or operations performed by or on behalf of Consultant; premises owned, leased or used by Consultant; or automobiles owned, leased, hired or borrowed by Consultant.
The coverage shall contain no special limitations on the scope of protection afforded to City, its elected officials, officers, employees, agents and volunteers.
2. The insurance coverage of Consultant shall be primary insurance as respects City, its elected officials, officers, employees, agents and volunteers. Any insurance or self-insurance maintained by City, its elected officials, officers, employees, agents and volunteers, shall be in excess of Consultant' s insurance and shall not contribute with it.
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Packet Pg. 680 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's
3. Coverage shall state that the insurance of Consultant shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer' s liability.
4. Each insurance policy required by this Contract shall be endorsed to state that coverage shall not be canceled except after thirty ( 30) calendar days' prior written notice has been given to City. In addition, Consultant agrees that it shall not reduce its coverage or limits on any such policy except after thirty 30) calendar days' prior written notice has been given to City.
E. Insurance is to be placed with insurers with a current A.M.Best' s rating of no less than A-VII.
F. Consultant shall designate the City of Redding, 777 Cypress Avenue, Redding, CA 96001 as a Certificate Holder of the insurance. Consultant shall furnish City with certificates of insurance and original endorsements effecting the coverages required by this clause. Certificates and endorsements shall be submitted electronically via the PINS Advantage system. A link will be provided for the Consultant, or their insurance agent, to enter and upload dacuments directly to PINS Advantage. The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. All endorsements are to be received and approved in PINS Advantage by the City' s Risk Manager prior to the commencement of contracted services. City may withhold payments to Consultant if adequate certificates ofinsurance and endorsements required have not been submitted as described above or provided in a timely manner.
G. The requirements as to the types and limits of insurance coverage to be maintained by Consultant as required by Section 5 of this Contract, and any approval of said insurance by City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by Consultant pursuant to this Contract, including, without limitation, provisions concerning indemnification.
H. If any policy of insurance required by this Section is a" claims made" policy, pursuant to Code of Civil Procedure § 342 and Government Code § 945. 6, Consultant shall keep said insurance in effect for a period of eighteen( 18) months after the termination of this Contract.
I. If any damage, including death, personal injury or property damage, occurs in connection with the performance of this Contract, Consultant shall immediately notify City' s Risk Manager by telephone at ( 530) 225- 4068. No later than three ( 3) calendar days after the event, Consultant shall submit a written report to City' s Risk Manager containing the following information, as applicable: 1) name and address of injured or deceased person( s); 2) name and address of witnesses; 3) name and address of Consultant' s insurance company; and 4} a detailed description of the damage and whether any City property was involved.
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Packet Pg. 681 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's SECTION 6. INDEMNIFICATION AND HOLD HARMLESS
A. Consistent with California Civil Code § 2782. 8, when the services to be provided under this Contract are design professional services to be performed by a design professional, as that term is defined under Section 2782. 8, Consultant shall, to the fullest extent permitted by law, indemnify protect, defend and hold harmless, City, its elected officials, officers, employees, and agents, and each and every one ofthem, from and against all actions, damages, costs, liability, claims, losses, penalties and expenses ( including, but not limited to, reasonable attorney' s fees of the City Attorney or legal counsel retained by City, expert fees, litigation costs, and investigation costs) of every type and description to which any or all of them may be subjected by reason of, or resulting from, directly or indirectly, the negligence, recklessness, or willful misconduct of Consultant, its officers, employees or agents in the performance ofprofessional services under this Contract, except when liability arises due to the sole negligence, active negligence or misconduct ofthe City.
B. Other than in the performance of professional services by a design professional, which is addressed solely by subdivision( A) of this Section, and to the fullest extent permitted by law, Consultant shall indemnify protect, defend and hold harmless, City, its elected officials, officers, employees, and agents, and each and every one of them, from and against all actions, damages, costs, liability, claims, losses, penalties and expenses ( including, but not limited to, reasonable attorney' s fees of the City Attorney or legal counsel retained by City, expert fees, litigation costs, and investigation costs) of every type and description to which any or all of them may be subjected by reason of the performance of the services required under this Contract by Consultant its officers, employees or agents in the performance of professional services under this Contract, except when liability arises due to the sole negligence, active negligence or misconduct of the City.
C. The Consultant' s obligation to defend, indemnify and hold harmless shall not be excused because of the Consultant' s
inability to evaluate liability. The Consultant
shall respond within thirty ( 30} calendar days to the tender of any claim for defense and indemnity by the City, unless this time has been extended in writing by the City.
Ifthe Consultant fails to accept or reject a tender of defense and indemnity in writing delivered to City within thirty ( 30) calendar days, in addition to any other remedy authorized by law, the City may withhold such funds the City reasonably considers necessary for its defense and indemnity until disposition has been made of the claim or until the Consultant accepts or rejects the tender of defense in writing delivered to the City, whichever occurs first. This subdivision shall not be construed to excuse the prompt and continued performance of the duties required of Consultant herein.
D. The obligation to indemnify, protect, defend, and hold harmless set forth in this Section applies to all claims and liability regardless of whether any insurance policies are applicable. The policy limits of said insurance policies do not act as a limitation upon the amount of indemnification to be provided by Consultant.
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Packet Pg. 682 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's E. City shall have the right to approve or disapprove the legal counsel retained by Consultant pursuant to this Section to represent City' s interests. City shall be reimbursed for all costs and attorney' s fees incurred by City in enforcing the obligations set forth in this Section.
SECTION 7. CONTRACT INTERPRETATION, VENUE AND ATTORNEY FEES A. This Contract shall be deemed to have been entered into in Redding, California. All questions regarding the validity, interpretation or performance of any of its terms or of any rights or obligations of the parties to this Contract shall be governed by California law. If any claim, at law or otherwise, is made by either party to this Contract, the prevailing party shall be entitled to its costs and reasonable attorneys' fees.
B. This document, including all exhibits, contains the entire agreement between the parties and supersedes whatever oral or written understanding each may have had prior to the execution of this Contract. This Contract shall not be altered, amended or modified except by a writing signed by City and Consultant. No verbal agreement or conversation with any official, officer, agent or employee of City, either before, during or after the execution of this Contract, shall affect or modify any of the terms or conditions contained in this Contract, nor shall any such verbal agreement or conversation entitle Consultant to any additional payment whatsoever under the terms of this Contract.
C. No covenant or condition to be performed by Consultant under this Contract can be waived except by the written consent of City. Forbearance or indulgence by City in any regard whatsoever shall not constitute a waiver of the covenant or condition in question. Until performance by Consultant ofsaid covenant or condition is complete, City shall be entitled to invoke any remedy available to City under this Contract or by law or in equity despite said forbearance or indulgence.
D. If any portion ofthis Contract or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Contract shall not be affected thereby and shall be enforced to the greatest extent permitted by law.
E. The headings in this Contract are inserted for convenience only and shall not constitute a part hereof. A waiver of any party of any provision or a breach of this Contract must be provided in writing, and shall not be construed as a waiver of any other provision or any succeeding breach of the same or any other provisions herein.
F. Each Party hereto declares and represents that in entering into this Contract, it has relied and is relying solely upon its own judgment, belief and knowledge of the nature, extent, effect and consequence relating thereto. Each Party further declares and represents that this Contract is made without reliance upon any statement or Consulting and Professional Services Agreement Page 9
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Packet Pg. 683 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's representation not contained herein of any other Party or any representative, agent or attorney of the other Party. The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms, and conditions ofthis Contract and that the decision of whether or not to seek the advice of counsel with respect to this Contract is a decision which is the sole responsibility of each of the Parties. Accordingly, no party shall be deemed to have been the drafter hereof, and the principle of law set forth in Civil Code § 1654 that contracts are construed against the drafter shall not apply.
G. Each of the Parties hereto hereby irrevocably waives any and all right to trial by jury in any action, proceeding, claim or counterclaim, whether in contract or tort, at law or in equity, arising out of or in any way related to this Agreement or the transactions contemplated hereby. Each Party further waives any right to consolidate any action which a jury trial has been waived with any other action in which a jury trial cannot be or has not been waived.
H. In the event of a conflict between the term and conditions ofthe body ofthis Contract and those of any exhibit or attachment hereto, the terms and conditions set forth in the body of this Contract proper shall prevail. In the event of a conflict between the terms and conditions of any two or more exhibits or attachments hereto, those prepared by City shall prevail over those prepared by Consultant.
SECTION 8. SURVIVAL
The provisions set forth in Sections 3 through 7, inclusive, of this Contract shall survive termination of the Contract.
SECTION 9. COMPLIANCE WITH LAWS - NONDISCRIMINATION
A. Consultant shall comply with all applicable laws, ordinances and codes of federal, state and local governments.
B. In the performance of this Contract, Consultant shall not discriminate against any employee or applicant for employment because of race, color, ancestry, national origin, religious creed, sex, sexual orientation, disability, age, marital status, political affiliation, or membership or nonmembership in any organization. Consultant shall take affirmative action to ensure applicants are employed and that employees are treated during their employment without regard to their race, color, ancestry, national origin, religious creed, sex, sexual orientation, disability, age, marital status, political affiliation, or membership or nonmembership in any organization. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training.
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Packet Pg. 684 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's SECTION 10. REPRESENTATIVES
A. City' s representative for this Contract is Kamryn Hutson, telephone number ( 530) 339- 7266. All of Consultant' s questions pertaining to this Contract shall be referred to the above- named person, or to the representative' s designee.
B. Consultant' s representative for this Contract is Scott Berg, telephone number ( 530) 378- 6905. All of City' s questions pertaining to this Contract shall be referred to the above- named person.
C. The representatives set forth herein shall have authority to give all notices required herein.
SECTION 11. NOTICES
A. All notices, requests, demands and other communications hereunder shall be deemed given only if in writing signed by an authorized representative of the sender( may be other than the representatives referred to in Section 10) and delivered by facsimile, with a hard copy mailed first class, postage prepaid; or when sent by a courier or an express service guaranteeing overnight delivery to the receiving party, addressed to the respective parties as follows:
To City: To Consultant:
Redding Electric Utility Self Help Home Improvement Program, Inc.
Attn: Nicholas Zettel Attn: Scott Berg
3611 Avtech Parkway 3777 Meadow View Dr. #100
Redding, CA 96002 Redding, CA 96002
B. Either party may change its address for the purposes of this paragraph by giving written notice of such change to the other party in the manner provided in this Section.
C. Notice shall be deemed effective upon: 1) personal service; 2) two calendar days after mailing or transmission by facsimile, whichever is earlier.
SECTION 12. AUTHORITY TO CONTRACT
A. Each of the undersigned signatories hereby represents and warrants that they are authorized to execute this Contract on behalf of the respective parties to this Contract; that they have full right, power and lawful authority to undertake all obligations as provided in this Contract; and that the execution, performance and delivery of this Contract by said signatories has been fully authorized by all requisite actions on the part of the respective parties to this Contract.
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Packet Pg. 685 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's B. When the Mayor is signatory to this Contract, the City Manager and/ or the Department Director having direct responsibility for managing the services provided herein shall have authority to execute any amendment to this Contract which does not increase the amount of compensation allowable to Consultant or otherwise substantially change the scope of the services provided herein.
SECTION 13. EFFECTIVE DATE OF CONTRACT
The effective date ( the " Effective Date") of this Contract shall be the date it is signed by City.
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Packet Pg. 686 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's IN WITNESS WI E OF, City and Consultant have executed this Contract on the days and year set forth below:
CTTY OF DDING,
A Municipal Cor oration
Dated: 20
By:
ATTEST: APPROVED AS TO FORM:
CHRISTIAN CURTIS
City Attorney
SHARLENE TIPTON, City Clerk By;
CONSULTANT
Dated: 20 E
By: SCOT BERG
Tax ID No.: "'" ; t,"'
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Packet Pg. 687 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's Exhibit A - Scope of Work
The tasks under this Exhibit A will consist of implementing the City of Redding' s ( COR) Electrification Assistance Program in accordance with the Program Guidelines as set forth herein and defined below. Self Help Home Improvement Project ( SHHIP) will provide the Services set forth in this Exhibit A for the applicable charges and rates specified in Exhibit B.
The following tasks consist of the major elements described in this Exhibit:
1) Project Management
2) Program Guidelines
3) Customer Enrollment
4) Dwelling Assessment
5) Energy Audit
6) Measure Installation
7) Program Marketing
8) Reporting and Record Retention
SHHIP shall offer and provide services as described in the tasks 3) to 6) to the City of Redding Electric Utility eligible customers upon the customers' request. The eligibility of the City of Redding Electric Utility customers for these services shall be determined based on the Program Guidelines.
1. Proiect Mana ement
Overview
Project Management is the function of managing the program in a manner that that will achieve the COR program goals within the program budget.
Task Activities
Project Management task activities consist of the following:
Task Name SHHIP Tasks COR Tasks
Residential Electrification Assistance Program 1
Packet Pg. 688 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's 1) Identify points of contact 1) Assign project manager for and project manager( s) implementation
2) Participate in program kick- 2) Initiate program kick-off off ineeting meeting within S business
3) Support and facilitate days of Contract execution
Quality Assurance Ride- 3) Develop a Quality
Along and Post- Inspections Assurance processes in the
Project per the Program Guidelines Program Guidelines for Task 1
Management 4) Deliver customer survey at Customer Enrollment, conclusion of jobs Dwelling Assessment,
5) Participate in quarterly Energy Audit, and Measure
meetings Installation task activities
4) Prepare quarterly reports
5) Initiate quarterly meetings
Develop Customer Survey
for tracking feedback
2. Program Guidelines
Overview
Program Guidelines define programmatic aspects of the Program, including customer eligibility criteria, material specifications, reporting criteria, forms, and other elements that define the nature of the program. The Program Guidelines are written with the understanding that elements of a program can change based on future regulatory development, a change in community needs, technology changes, and other factors.
The Program Guidelines may be updated with mutual consent of the COR and SHHIP, as long as the changes do not require modification to the pricing schedule.
Task Activities
Program Guidelines task activities consist of the following:
Task Name SHHIP Tasks COR Tasks
Program 1) Collaborate on 1} Develop and Approve
Task 2
Guidelines develo p ment of Pro g
ram Pro g ram Guidelines b Y Jul Y
Guidelines, including 1, 2024
Residential Electrification Assistance Program 2
Packet Pg. 689 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's identifying measure 2) Collaborate on changes to
installation guidelines Program Guidelines based
2) Implement the Program on customer, admin, &
Guidelines within 5 contractor feedback
business days of Approval
3) Implement updates to the
Program Guidelines within
5 business days of revisions
agreed
3. Customer Enrollment
Overview
SHHIP will enroll customers in the Program by completing the customer application per the requirements of the Guidelines. SHHIP currently performs enrollment for other low- income programs and will utilize qualified staff to interact with customers and identify feasible measures.
Task Activities
Customer Enrollment task activities consist of the following:
Task Name SHHIP Tasks COR Tasks
1) Provide qualified staff to 1) Conduct Quality Assurance enter customers' homes Ride- Along and Postand identify feasible Inspections ( notification to measures SHHIP within 5 business
2) Verify that the customer is days)
Customer the COR customer of record 2) Issue COR Badges within 15 Task 3
Enrollment 3 Verif l y that the customer days of contract execution meets all eligibility
requirements listed in the
Program Guidelines
4) Maintain database of
enrolled customers and
project information
Residential Electrification Assistance Program 3
Packet Pg. 690 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's 5) Record the estimated
quantity of feasible
measures, where measure
feasibility criteria are
defined by the standards
referenced in the Program
Guidelines
6) Obtain required signatures
from homeowners, their
agent, and tenants as
applicable
7) Provide a list of qualified
staff requiring badges
4. Dwelling Assessment
Overview
SHHIP will assess dwelling to identify safe, feasible electrification and energy saving measures that will provide energy saving benefits to participating customers. SHHIP is experienced reviewing the feasibility requirements of the various program measures and requires no additional training. Multiple assessments may be appropriate or required for each project, and may occur during one or multiple visits.
Task Activities
Task Name SHHIP Tasks COR Tasks
1) Determine if ineasures are 1) 1) Verify dwelling
feasible in each home per information in reports
Program Guidelines 2) Conduct Quality Assurance
2) Ensure measures installed Ride-Along and PostDwelling Task 4 in accordance with state Inspections ( notification to Assessment
and local building codes SHHIP within 5 business
3) Facilitate Quality Assurance days)
Ride- Along and PostInspections upon COR
request
Residential Electrification Assistance Program 4
Packet Pg. 691 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's
5. Ener y Audit
Overview
SHHIP will conduct energy audits to determine if certain measures are feasible in a home.
SHHIP is experienced in conducting energy audits per the guidelines defined in the program handbook. SHHIP currently conducts audits in other programs, and these audits may be used by the COR so as not to duplicate efforts.
Energy savings will be evaluated using (but not limited to) the Savings Investment Ratio (SIRj or other calculations approved in the Program Guidelines.
Task Activities
Task Name SHHIP Tasks COR Tasks
1) Perform on- site data 1) Develop electrification
collection and diagnostic savings calculation
information 2) Identify SIR calculation
2) Develop detailed measure required for energy
cost estimates efficiency measures
3) Perform computer analysis 3) Review and approve of
Task 5 Energy Audit per the program energy audit prior to 4) Submit energy audit and measure installation w/ in 5 supporting documentation business days
to the COR per program
guidelines
5) Conduct Energy Audits
based on Program
Guidelines
6. Measure Installation
Overview
SHHIP will install electrification and supportive energy-efficient measures in customers' homes. SHHIP currently has all required licenses to conduct business and perform the work required by this contract and is trained in proper installations of program measures.
SHHIP will ensure that feasible measures are installed in a safe and effective manner. Upon Residential Electrification Assistance Pragram S
Packet Pg. 692 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's project completion, SHHIP wiil inform customers of the work that was performed and educate them on the proper use of newly installed equipment.
Task activities
Measure Installation task activities consist of the following:
Task Name SHHIP Tasks COR Tasks
1) 1) Perform measure 1) Verify measure install
installation in accordance through Quality Assurance
with local, state, and process
federal requirements and 2) Conduct EM& V study within
Program Guidelines. two years of Program
2) Educate the customer implementation
regarding work that was 3) Conduct Quality Assurance
performed and proper use Ride-Along and PostMeasure of newly installed Inspections ( notification to Task 6
Installation equipment. SHHIP within 5 business
3) Clean up and dispose of days)
trash.
4) Provide labor warranty for
one year from date of
installation.
5) Facilitate Quality Assurance
Ride- Along and PostInspections upon COR
request
7. Program Marketin
Overview
In coordination with the COR, SHHIP will assist with marketing the program to prospective income- eligible customers for enrolling customers in the Program. SHHIP currently performs outreach for various low- income programs, including a call center, front counter, and website.
Outreach for the Program will be delivered in alignment with the COR' s current outreach processes, including ( but not limited to) a call center, a front counter, and a website.
Residentia) Electrification Assistance Program 6
Packet Pg. 693 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's The Marketing Plan will include details including targeted customers, marketing campaigns, co- branding opportunities, and marketing materials. Marketing materials may include digital graphics, social media, videos, copy, and printed media that will be shared by the COR and SHHIP. SHHIP will add a dedicated webpage about the Program on its website www. shipp. or), including ( at minimum) a brief description of the program, contact information for interested parties, and program eligibility guidelines.
The COR must review and approve of all Program marketing materials utilized by SHHIP before they are publicly released. The COR may also recommend changes to previously approved marketing materials.
Task Activities
Program Marketing task activities consist of the following:
Task Name SHHIP Tasks COR Tasks
1) Assist with Marketing plan 1) Develop Marketing plan 2) Develop Program and materials
information page on SHHIP 2) Provide digital and physica) website copies of approved
3) Provide preferred phone marketing materials
number, email, and physical 3) Provide list of potential address, for customer targeted customers
referrals
Program 4) Distribute Program
Task 7
Marketin g marketing materials
provided by COR
5) Identify customers and
conduct outreach to
promote Program
participation
6) As requested, attend
education and outreach
events to support and
promote the Program
8. Reportin and Records Retention
Residential Electrification Assistance Program 7
Packet Pg. 694 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's Overview
SHIPP will provide various reports on program progress to the COR on a monthly and annual basis. In addition, project- level data shall be reported for every home treated in the program.
Project records shall be maintained for a minimum of three years from the completion date of the project. Reports will be shared electronically. The COR will not have access to customer records other than those specifically required by this agreement.
Task Activities
Reporting and Records Retention task activities consist of the following:
Task Name SHHIP Tasks COR Tasks
1) Develop monthly reporting 1) Identify reporting
template that meets the requirements for
requirements of the compliance accounting
Program Guidelines. 2) Review all reports and
2) Develop dwelling level accept or deny acceptance
template that meets the by the 25th business day of
requirements of the the month.
Guidelines.
Required 3) Deliver monthly report to
Task 8
Reporting City of Redding by the 20th
business day of the month.
4) Deliver dwelling level
report to the City of
Redding by the 20th
business day of the month.
5) Retain project records for
minimum of three years
after completion of
contract
Residential Electrification Assistance Program 8
Packet Pg. 695 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's Exhibit B - Fee Schedule
Bud et Schedule
The following budget schedule provides the estimated annual budget throughout the Program life. SHHIP may exceed the annual average budget, but is limited to the total Program budget for the remainder of the Contract Term.
Program Year Year 1 Year 2 Year 3 Tota)
Estimated Annual
Budget
400, 000 400, 000 400, 000 1, 200, 000
Fees
1) For each calendar month, SHHIP shall invoice, and the COR shall pay to SHHIP the Fees set forth in Exhibit B according to the payment criteria and other provisions of this Agreement.
2) Unless otherwise specifically agreed, beginning on the first anniversary of the Effective Date, SHHIP will increase the Fees by three percent on an annual basis from each anniversary of the Effective Date.
Fee Schedule
Measure Description Measure Type Units Fee per Unit
Assessment Fee - Redding
1 Admin Home 285. 00
Program
2 Ceiling Insulation, R- 49 Efficiency Square Foot 2. 50 Heat Pump Water Heater3 Efficiency Water Heater 3, 600. 00 Replacing Electric
Heat Pump Clothes Dryer4 Efficiency Dryer 1, 100. 00
Replacing Electric
Induction Range - Replacing
5 Efficiency Range 1, 050. 00
Electric
Ceiling Insulation when any
6 Efficiency Square Foot 1. 85
already exists
Residential Electrification Assistance Program 9
Packet Pg. 696 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's Measure Description Measure Type Units Fee per Unit
7 NEOCharger Circuit Splitter Electrification Circuit 550. 00 8 Neo Charger and Splitter Electrification Circuit 850. 00 9 Simple Switch Circuit Splitter Electrification Circuit 1, 400. 00 10 Install Circuit Electrification Circuit 700. 00
11 Wi- Fi Enabled Smart Thermostat Electrification Thermostat 260. 00 Heat Pump Water Heater12 Electrification Water Heater 4, 200. 00 Replacing Gas
Package Heat Pump HVAC13 Electrification System Actual cost+ 8. 5% Replacing Gas
14 Minisplit HVAC- Replacing Gas Electrification System Actual cost+ 8. 5% 15 Level 2 EV Charger Electrification EV Charger 1, 000. 00 16 Panel Upgrade Electrification Panel 2, 500. 00
17 HP Dryer- Replacing Gas Electrification Dryer 1, 700. 00 18 Induction Range- Replacing Gas Electrification Range 1, 650. 00 Residential Electrification Assistance Program 10
Packet Pg. 697 Attachment: Previous Staff Report - 06-12-24 - 9.5(b)--Residential Electrification Assistance Program (4.5(b)--Approve Redding Electric Utility's
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to expenditures of Greenhouse Gas Capand-Invest (formerly Cap and Trade) Allowance Proceeds:
(1) Approve the establishment and implementation of the Energy Procurement Program; (2) Adopt Resolution approving and adopting the 26th Amendment to City Budget Resolution No. 2025-049 appropriating $1,579,000 of unallocated proceeds from the sale of California carbon allowances and interest accrued to fund the Energy Procurement Program; and
(3) Authorize the City Manager, or designee, to administer the program, including approving program specifics, making program modifications, adjusting funding between eligible programs, and allocating any additional allowance auction proceeds and interest earnings to eligible programs.
Fiscal Impact
The following table summarizes the Greenhouse Gas (GHG) Cap-and-Invest Proceeds:
DESCRIPTION AMOUNT
Auction Proceeds from Sale of Allowances Through 2020 $33,149,000 Estimated Interest Earned Through 2025 $1,843,000
Total GHG Funding Balance $34,992,000
Appropriated Programs $33,413,000
Unallocated GHG Funds $1,579,000
Cap-and-Invest (formerly Cap and Trade) proceeds are held as restricted reserves within Redding Electric Utility (REU). Adoption of the attached budget Resolution is needed to appropriate and expend these funds. Use of these restricted reserves will not affect REU’s financial metrics, including days of cash on hand. As noted in the Background/Analysis below, REU is required by California law to expend these funds for eligible purposes. Approximately $1,579,000 in restricted reserves is currently unallocated and available for appropriation.
MEETING DATE: April 7, 2026
ITEM NO. 4.5(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(c)--Resolution to Approve Expenditures of Greenhouse Gas Cap-and-Invest Allowance Proceeds
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 698 Attachment: Previous Staff Report - 04.07.26 - GHG and Energy Procurement Program (4.5(b)--Approve Redding Electric Utility's Report to Redding City Council April 1, 2026
Re: 4.5(c)--Resolution to Approve Expenditures of Greenhouse Gas Cap-and-Invest Allowance Proceeds Page 2
Alternative Action
Council may choose not to authorize the City Manager, or designee, to expend Cap-and-Invest allowance proceeds on the identified greenhouse gas (GHG) emission reduction programs. REU staff would study additional options and return to the City Council (Council) with an alternative proposal.
Background/Analysis
Assembly Bill 32 established California’s Greenhouse Gas Cap-and-Invest Program, requiring certain sectors, including publicly owned electric utilities, to reduce greenhouse gas emissions to 1990 levels. REU participates in this program and receives a limited allocation of free allowances from the California Air Resources Board (CARB) to offset compliance costs associated with emissions from the Redding Power Plant and imported electricity. Each allowance represents one metric ton of greenhouse gas emissions, and surplus allowances may be sold through State auctions. Under standard practice, REU first retires allowances required for compliance, then sells any remaining allowances through the auction. Proceeds from these sales, along with interest earnings, are restricted by statute and must be used for programs that benefit electric ratepayers and reduce GHG emissions.
Since 2013, the City Council has taken multiple actions to establish policies and approve programs that ensure allowance proceeds are used appropriately and provide the best community benefit. As a result, approximately $33 million in auction proceeds has been allocated to GHG Programs, including transportation electrification, energy efficiency upgrades to City facilities, non-motorized transportation, and income qualifying programs. These programs have helped reduce over 22,000 metric tons of carbon, or the equivalent of removing 5,132 gasoline-powered vehicles from the road for one year.
Due to reduced allowance allocations and increased compliance obligations, REU has not had surplus allowances available for sale in recent years (current funding is limited to proceeds accrued through 2020 and interest earnings). To date, only two programs remain active:
Transportation Electrification with a balance of $1,060,000 and City Energy Efficiency Measures with a balance of $551,000 (expected to end in Fiscal Year 2026). The Non-Motorized Transportation program closed in 2022, but has $186,000 in unused funding available for other GHG programs. All remaining program funds will be swept to the new Energy Procurement Program.
Staff regularly evaluates options to deploy available allowance proceeds in a manner that maximizes greenhouse gas reductions, complies with California Code of Regulations (CCR) §95892, and provides cost-effective benefits to electric ratepayers. This evaluation considers regulatory requirements, cost efficiency, and alignment with Renewable Portfolio Standard (RPS) obligations. Per CCR §95892(d)(3)(A)(1), funding can be used to purchase renewable energy resources that meet Portfolio Content Category 1 requirements.
Packet Pg. 699 Attachment: Previous Staff Report - 04.07.26 - GHG and Energy Procurement Program (4.5(b)--Approve Redding Electric Utility's Report to Redding City Council April 1, 2026
Re: 4.5(c)--Resolution to Approve Expenditures of Greenhouse Gas Cap-and-Invest Allowance Proceeds Page 3
To maximize the use of remaining unencumbered GHG funds, REU recommends that the City Council establish an Energy Procurement Program within its Cap-and-Invest Program. There are renewable energy purchases already under contract that meet the eligibility requirements for GHG funds and are impacting the utility’s balance sheet. It is recommended that Council approve and allocate unused restricted funding to the Energy Procurement Program for renewable energy purchases until remaining funding is exhausted. Applying available GHG funds to eligible renewable purchases reduces the amount that must otherwise be recovered through electric rates. By offsetting these costs with restricted funds, the program helps stabilize rates, limit future increases, and protect long-term affordability for REU customers.
Additionally, this approach reduces greenhouse gas emissions more economically than other available options and supports long-term sustainability objectives, including the RPS. Staff may request adjustments to certain attributes of the program with the overall goal of maximizing benefits to REU ratepayers.
Table 1 provides a summary of the total estimated funding available to fund the Energy Procurement Program.
Table 1: Estimated Funding Available for Energy Procurement Program Description Amount
Unallocated GHG Funds $1,579,000
Reallocation of Unused Budgeted Program Funds * $1,797,000 Total Available Funding for Energy Procurement Program $3,376,000 * Amounts are based on current estimates of unexpended program funds and are subject to final reconciliation
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• Government of the 21st Century – "Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today."
Attachments
Budget Resolution
Cap-and-Invest Programs Funding Update
Energy Procurement Program Outline
Previous Staff Report - 4-16-17 - 9.5(b) Approve Expenditures of Greenhouse Gas Cap and Trade Allowance Proceeds
Previous Staff Report - 4-17-18 - 9.5(b)- Approve Expenditures of Greenhouse Gas Cap and Trade Proceeds
Previous Staff Report - 7-21-20 - 4.11(k)--City of Redding COVID Economic Stimulus Program of Projects
Previous Staff Report - 2-4-26 - 9.11(d)--Accept Final Update to COVID-19 Economic Stimulus Package Projects
Packet Pg. 700 Attachment: Previous Staff Report - 04.07.26 - GHG and Energy Procurement Program (4.5(b)--Approve Redding Electric Utility's
RECOMMENDATION