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Home My WebLink About2020-08-20; Clean Energy Alliance JPA; ; Clean Energy Alliance Meeting ExhibitsClean Energy Alliance JOINT POWERS AUTHORITY Regular Board Meeting August 20, 2020, 2 p.m. Hosted by the City of Solana Beach 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 1 Item 2: Clean Energy Alliance Interim Chief Executive Officer & Regulatory Affairs Update Barbara Boswell, Interim Chief Executive Officer Ty Tosdal, Tosdal APC 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 2 Item 2: Clean Energy Alliance Interim CEO & Regulatory Affairs Update • Recommendation O Receive & file CEA Interim Chief Executive Officer Report o Receive & file CEA Regulatory Affairs Update Report 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 3 Item 2: Clean Energy Alliance Interim CEO & Regulatory Affairs Update • CEA Launch Schedule o San Diego Gas & Electric Billing Replacement Delay O CEA working with SDG&E to determine amended launch schedule o Potential 2-phased approach • May 2021 — SEA transition to CEA & select "non-complex" accounts O June 2021— all remaining accounts o Staff working with SDG&E, Calpine & Pacific Energy Advisors to determine customer mix that minimizes risk of billing issues, and impact to CEA financial results 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 4 Item 2: Clean Energy Alliance Interim CEO & Regulatory Affairs Update • Communications & Marketing REP Results o May 21, 2020 Board Authorized RFP o Scope of Work o Community outreach and stakeholder engagement o CEA branding, design, messaging and identity o Website update, content development related to CEA implementation and maintenance o Regulatory required noticing, marketing and advertising campaign o Media relations and public affairs • Project management/performance metrics 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 5 Item 2: Clean Energy Alliance Interim CEO & Regulatory Affairs Update • Eleven proposals received • Proposals evaluated based on: o Experience & Qualifications o Approach to performance of scope of work o Project costs o Four firms short-listed invited to interview O Top two firms references were checked 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 6 Item 2: Clean Energy Alliance Interim CEO & Regulatory Affairs Update • Tripepi Smith selected through this evaluation process o Experience performing similar work for new CCAs o Firm focus on local government communications & marketing O Contract cost is within CEA Interim Chief Executive Officer authority of $100,000 and within FY 2020/21 approved budget • Tripepi Smith team available for Board introduction and questions 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 7 Item 2: Clean Energy Alliance Interim CEO & Regulatory Affairs Update • Regulatory Affairs Update — Ty Tosdal, Tosdal APC O SDG&E Trigger Application (A.20-07-009) o SDG&E ERRA Proceeding (A.20-04-014) • Integrated Resource Planning (R.20-05-003) 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 8 Item 2: Clean Energy Alliance Interim CEO & Regulatory Affairs Update Board Questions/Discussion 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 9 Item 3: Clean Energy Alliance Integrated Resource Plan Barbara Boswell, Interim Chief Executive Officer John Dalessi, Pacific Energy Advisors 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 10 Item 3: CEA Integrated Resource Plan • Recommendation 0 Adopt Resolution Approving CEA Integrated Resource Plan 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 11 Item 3: CEA Integrated Resource Plan • Background O All CPUC jurisdictional load serving entities must file an IRP with the CPUC every two years O 2020 IRP consists of a narrative template, resource data template, and clean system power calculator (GHG calculator) showing planned energy and capacity resources through 2030 o Plans are assessed for reliability, greenhouse gas emissions, and local air pollutant minimization in disadvantaged communities O Two plans are required, consistent with a statewide GHG emission limit for the electric sector for 2030 of 46 MMT and a lower limit of 38 MMT 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 12 Item 3: CEA Integrated Resource Plan LSE Proportion 2030 Proportion 2030 GHG 2030 GHG of 2030 Load of 2030 emissions emissions emissions (GWh) Load benchmark benchmark inclusive of within (MMT) —46 (MMT) --38 industrial IOU MMT MMT load* Territory scenario scenario SDG&E Area Bundled 5,366 29.46% 1.198 0.990 Direct Access 3,940 21.63% 0.880 0.727 Clean Energy Alliance 8.84% 992 5.45% 0.222 0.183 Solana Energy Alliance 0 0.00% 0.000 0.000 San Diego Community Power 7,914 43.45% 1.768 1.460 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 13 Item 3: CEA Integrated Resource Plan • CEA Board Determination regarding CEA's Preferred Conforming Portfolios o Achieves economic, reliability, environmental, security and other benefits consistent with Utilities Code Section 454.52 o Includes a diversified procurement portfolio consisting of short- term and long-term electricity and electricity-related and demand reduction products o Achieves Resource Adequacy requirements o Consistent with the procurement timing, resource mix and operational attributes of 38MMT RSP And 46MMT RSP 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 14 Item 3: CEA Integrated Resource Plan • CEA Preferred Conforming Portfolios 0 38 MMT Preferred Conforming Portfolio o 82% renewable energy content by 2030, reflecting progress toward 100% goal by 2035 o 5% large hydro energy o 13% system energy o 46 MMT Preferred Conforming Portfolio o 74% renewable energy content by 2030 (limited to meet GHG benchmark) o 26% system energy 8/20/20 CLEAN ENERGY ALLIANCE-DRAFT 15 Item 3: CEA Integrated Resource Plan • Planned Capacity Resources o 150/75 MW of new solar + storage o 75 MW of new wind o 7 MW of new long duration storage o 117 MW of existing resource adequacy capacity needed to meet reliability obligations • New CEA resource additions may be adapted in future IRP processes to the extent actual procurement differs from noted projections 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 16 Item 3: CEA Integrated Resource Plan • IRP narrative developed based on template consistent with CCAs throughout state • Meets Utilities Code requirements • Reflects State benchmarks and resources build-out forecasts • Will be filed by due date of September 1, 2020 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 17 Item 3: CEA Integrated Resource Plan Board Discussion 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 18 Item 4: Clean Energy Alliance Credit Solution Update Barbara Boswell, Interim Chief Executive Officer 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 19 Item 4: Clean Energy Alliance Credit Solution Update • Recommendation o Authorize Interim Chief Executive Officer to execute $400,000 Promissory Note with Calpine Energy Solutions to provide operational funding through February 2021, subject to General Counsel Approval o Direct Interim Chief Executive Officer to continue to work towards a credit solution for remaining CEA start-up funding needs and to return with options at the November 19, 2020 CEA Board Meeting 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 20 Item 4: Clean Energy Alliance Credit Solution Update • Background O June 18, 2020 Board considered credit solution options o Funding Needed for FY 20/21 through start-up: Funding for FY 20/21 Operating Budget $ 1,000,000 Repayment of initial Member Advances 450,000 CAISO Deposit 500,000 Lockbox Reserves & Cash flow 2,500,000 Total Funding Needed $ 4,450,000 CI Board considered two options: River City Bank (RCB) and JP Morgan 0 Selected RCB as option to initially pursue 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 21 Item 4: Clean Energy Alliance Credit Solution Update • RCB Option O Requires Security for $2.5M of credit line o Board directed staff contact Member Agencies regarding possibility of providing the loan guaranty o Pro-rata share of guaranty based on load: AGENCY % OF LOAD PRO-RATA SHARE Carlsbad 90% $ 2,250,000 Del Mar 3% $ 75,000 Solana Beach 7% $ 175,000 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 22 Item 4: Clean Energy Alliance Credit Solution Update • July 8 Solana Beach Approved Loan Guaranty • July 20 Del Mar Approved Loan Guaranty • July 14 Carlsbad considered loan guaranty and alternative option of providing the credit solution • July 28 Carlsbad City Council considered possible terms of CEA financing — did not approve financing or the guaranty 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 23 Item 4: Clean Energy Alliance Credit Solution Update • Carlsbad City Council cited concerns regarding O Uncertainty regarding launch schedule o Resolution expected late August/Early September o SDG&E ERRA Rate Proceeding & Impact to CEA Rates 0 Impacts known November o SDG&E Trigger Application & Impact to CEA 0 Impacts known September 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 24 Item 4: Clean Energy Alliance Credit Solution Update • Credit Solution options: o Continue to Pursue RCB guaranty options from other sources o Begin working with JP Morgan for its credit solution o Loan from Calpine Energy Solutions for FY 20/21 Operational Budget Needs 0 Option up to $650,000 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 25 Item 4: Clean Energy Alliance Credit Solution Update • Staff recommends executing loan with Calpine in the amount of $400,000 to fund operations through February 2021: Professional Consulting Services $ 98,000 Technical Consulting Services 118,000 Legal Services 115,000 CalCCA Membership Dues 15,000 Balance due on CCA Bond 47,000 Operational costs through Feb 2021 $ 393,000 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 26 Item 4: Clean Energy Alliance Credit Solution Update • Calpine Loan Terms: o Interest 1-Month LIBOR plus 2% on date funds deposited 0 Libor on 8/14/20 was .1515% o Repayment in twelve equal installments beginning 90-days after CEA begins serving customers ID No recourse to Member Agencies Provide funding for operational costs while current areas of concern are resolved 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 27 Item 4: CEA Credit Solution Board Discussion 8/20/20 CLEAN ENERGY ALLIANCE- DRAFT 28 Item 5: Clean Energy Alliance Inclusive & Sustainable Workforce Policy Barbara Boswell, Interim Chief Executive Officer 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 29 Item 5: Clean Energy Alliance Inclusive & Sustainable Workforce Policy • Recommendation 0 Review, Provide Input & Approve CEA Inclusive & Sustainable Workforce Policy 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 30 Item 5: Clean Energy Alliance Inclusive & Sustainable Workforce Policy • Background 0 May 7, 2020 CEA Board provided input & direction to staff to bring an Inclusive & Sustainable Workforce Policy to Board for consideration 0 July 23, 2020 CEA Board considered draft Inclusive & Sustainable Workforce policy o Recommendations submitted to Board by IBEW 569 o Directed staff to bring draft Policy back to CEA Board at next meeting. 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 31 Item 5: Clean Energy Alliance Inclusive & Sustainable Workforce Policy Board Discussion 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 32 Item 6: Clean Energy Alliance Community Advisory Committee Work Plan Barbara Boswell, Interim Chief Executive Officer 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 33 Item 6: CEA Community Advisory Committee Work Plan • Recommendation: o Review, provide input and approve CEA Community Advisory Committee Scope of work and desired outcome for CAC work plan. 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 34 Item 6: CEA Community Advisory Committee Work Plan • Background: o July 16, 2020 — CAC Policy Approved o July 23, 2020 — CAC Timeline Approved o August 3, 2020 — CAC Applications Period Opened o August 28, 2020 — Applications due to Board Secretary o October 15, 2020 — Board to discuss & Approve Appointees • November/December — CAC First Meeting 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 35 Item 6: CEA Community Advisory Committee Work Plan • Scope of Work Identified at May 7, 2020 Special Meeting: o Community Outreach o Social Equity Issues o CEA Program Review for meeting CEA goals of equity & innovation O Monitoring Climate Action Plan Goals O Play role in strategic plan process • Further refine scope of work • Board desired outcomes for scope of work 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 36 Item 6: CEA Community Advisory Committee Work Plan Board Discussion 8/20/20 CLEAN ENERGY ALLIANCE- DRAFT 37 Item 7: Clean Energy Alliance Award RFQ #2020-004 Portfolio Manager Services Barbara Boswell, Interim Chief Executive Officer 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 38 Item 7: Clean Energy Alliance Award RFQ #2020-004 Portfolio Manager Svcs • Recommendation 0 Authorize Interim Chief Executive Officer to execute agreement with Pacific Energy Advisors to provide Portfolio Management Services, through June 30, 2023, for an amount not to exceed $120,000, subject to General Counsel approval. 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 39 Item 7: Clean Energy Alliance Award RFQ #2020-004 Portfolio Manager Svcs • Background O May 21, 2020 Board authorized issuance of RFQ for Portfolio Manager and Scheduling Coordinator Services O May 26, 2020 — RFQ Issued O June 17, 2020 — Responses Due 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 40 Item 7: Clean Energy Alliance Award RFQ #2020-004 Portfolio Manager Svcs • Scope of Work Task 1— Portfolio Manager o Portfolio Management Strategy o Energy Risk Management Policy Development o Power Procurement o Policy and Program Development o Other Services offered by Responder o Task 2 — Scheduling Coordinator Services o Scheduling of Load into CAISO O Congestion Revenue Rights Management 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 41 Item 7: Clean Energy Alliance Award RFQ #2020-004 Portfolio Manager Svcs • Responders could propose either or tasks O Task 1: Portfolio Manager — 4 Responses O Task 2: Scheduling Coordinator — 4 Responses • Proposals were evaluated and short list developed • Firms interviewed from short list • Task 2 continues to be evaluated 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 42 Item 7: Clean Energy Alliance Award RFQ #2020-004 Portfolio Manager Svcs • Task 1 Short List FIRM NOT TO EXCEED NOTES AMOUNT Pacific Energy Advisors $100,000 FY 20/21 $120,000 FY 21/22 & FY 22/23 Additional services added: Rate Setting Reporting included Monthly EIA and Quarterly QFER, and Joint Rate Comparison Preparation The Energy Authority $103,000 FY 20/21 $198,000 FY 21/22 & FY 22/23 ZGlobal $69,100 FY 20/21 $82,920 FY 21/22 & FY 22/23 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 43 Item 7: Clean Energy Alliance Award RFQ #2020-004 Portfolio Manager Svcs • Pacific Energy Advisors Recommended o Expertise in providing services o Additional value of services Added o Focus on supporting CCA programs o Cost effectiveness of proposal o Positive experience with PEA providing existing Scope of Services to CEA • Pacific Energy Advisors available for Board questions/comments 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 44 Item 7: Clean Energy Alliance Award RFQ #2020-004 Portfolio Manager Svcs • Scheduling Coordinator Services Recommendation anticipated for September 17, 2020 Board meeting 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 45 Item 7: CEA Award RFQ #2020-004 Portfolio Manager Svcs Board Discussion 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 46 Item 8: Clean Energy Alliance Interim Treasurer Barbara Boswell, Interim Chief Executive Officer 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 47 Item 8: Clean Energy Alliance Interim Treasurer • Recommendation 0 Authorize Interim Chief Executive Officer to execute agreement with Marie Berkuti to provide Interim Treasurer Services, through June 30, 2021, for an amount not to exceed $10,000, subject to General Counsel approval. 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 48 Item 8: Clean Energy Alliance Interim Treasurer • Background o Section 5.4 of CEA Joint Powers Agreement requires Board Appoint Treasurer/Chief Financial Officer & Auditor o November 4, 2019 CEA Board appointed Marie Berkuti, City of Solana Beach Finance Director Treasurer as CEA Interim Treasurer • Ms. Berkuti is retiring from City of Solana Beach September 2020 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 49 Item 8: Clean Energy Alliance Interim Treasurer • Inquiry of Member Agencies regarding providing Interim Treasurer Services 0 Current workloads don't allow the bandwidth • Ms. Berkuti is available to continue to provide services on contractual basis through June 30, 2021 • Funds available in CEA Approved Budget to cover • Solana Beach would continue to provide accounting services (processing of invoice payments, internal control) • Board to determine subsequent Treasurer fulfillment thought FY 21/22 budget process 8/20/20 CLEAN ENERGY ALLIANCE - DRAFT 50 Item 8: Clean Energy Alliance Interim Treasurer Board Discussion 8/20/20 CLEAN ENERGY ALLIANCE- DRAFT 51