CITY INITIATIVES ROADMAP -
CLEAN ENERGY RESILIENCE:
POWER PROCUREMENT
AGREEMENTS
October 18, 2022
Lori Mitchell, Director
Jeanne Solé, Deputy Director of Power Resources
Kelly Morris, Senior Power Resources Specialist
REQUEST FOR AUTHORITY TO PURCHASE POWER
Calendar
Year Existing Authority Requested Additional
Authority
Total Authority
with Request
Target Coverage
Ratio Max.
2022 $360,200,000 $20,000,000 $380,200,000 125%
2023 $320,100,000 $32,800,000 $352,900,000 115%
2024 $291,500,000 $45,800,000 $337,300,000 95%
2025 $247,800,000 $73,800,000 $321,600,000 90%
2026 $159,300,000 $121,400,000 $280,700,000 90%
2027 $158,000,000 $111,800,000 $269,800,000 85%
Total $1,536,900,000 $405,600,000 $1,942,500,000
• SJCE recommends increasing the authority to purchase power products including energy, renewable energy, resource
adequacy and low carbon products for the period 2022-2027. 2 • Authority is needed to meet customer’s electric demand. • SJCE plans to approach the upper limit of the Energy Risk Management Regulations coverage ratio (expected load) to reduce its exposure to market volatility.
• Procuring ahead limits SJCE’s exposure to short-term market disruptions and high prices in the Day-Ahead and Real-Time markets.
BACKGROUND
3 EXISTING AUTHORITY, COMMITTED AMOUNTS, AND
ADDITIONAL REQUEST
4 Recommendation
Increase the authority granted to the Director of CED or designee to negotiate and execute agreements five years and under to procure power products by $405.6M from $1.54B to an amount not to exceed $1.9B in 2022-2027, to be paid solely from the San José Clean Energy Operating Fund, and subject to the Energy Risk Management Policy and Regulations, the appropriation of funds, and the following annual limits:
QUESTIONS?
2022 2023 2024 2025 2026 2027
$380.2M $352.9M $337.3M $321.6M $280.7M $269.8M
Presenting staff:
Lori Mitchell, Director
Jeanne Solé, Deputy Director of Power Resources
Kelly Morris, Senior Power Resources Specialist
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