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Home My WebLink About2021-01-21; Clean Energy Alliance JPA; ; Approve Clean Energy Alliance Default and Optional Power Supply Product Offerings to be Available at LaunchCLEAN ENERGY ENERGY ALLIANCE Staff Report DATE: January 21, 2021 TO: Clean Energy Alliance Board of Directors FROM: Barbara Boswell, Interim Chief Executive Officer ITEM 11: Approve Clean Energy Alliance Default and Optional Power Supply Product Offerings to be Available at Launch RECOMMENDATION 1) Approve Clean Energy Alliance (CEA) Default and Optional Power Supply Product Offerings to be Available at Launch: •Green Impact — 50% Renewable Energy Product as default power supply for CEA •Name TBD - 50% Renewable/75% GHG-Free Product as an option for Member Agencies to select as default power supply •Clean Impact — 100% Renewable Energy Product as an option for Member Agencies to select as default power supply and opt-up product for individual customers to select 2) Provide direction on Local Impact program offering and criteria for customer eligibility. BACKGROUND AND DISCUSSION: At its December 17, 2020 regular meeting, the CEA Board considered power supply product offerings that it should make available at launch. At that meeting the Board considered the following options: •Green Impact - 50% renewable energy as the minimum default energy selection for CEA; •Clean Impact - 100% renewable energy as an option for Member Agencies to select as a default and for customers to voluntarily opt-up; •Local Impact - Minimum state required renewable energy (36% in 2021 increasing to 39% in 2022) for customers to voluntarily opt-down — open to residential customers enrolled in CARE/FERA and small businesses that meet certain criteria to be determined The Board also discussed offering an alternative power supply product sourced from 50% renewable/75% greenhouse gas-free energy in consideration of the current default Solana Energy Alliance provides its customers. After discussion, the Board requested that product offering options be presented to the City Councils of the member cities for input. As of posting of this agenda, the City Councils of Carlsbad and Solana Beach had met and received a presentation on the power supply product options the CEA Board is considering and provided input, as summarized below. January 21, 2021 Power Supply Products Page 2 of 2 City of Carlsbad The City of Carlsbad supported: •Green Impact - 50% renewable energy as the minimum default energy selection for CEA; •Clean Impact - 100% renewable energy as an option for Member Agencies to select as a default and for customers to voluntarily opt-up; •Option of 50% renewable/75% GHG-Free The City of Carlsbad did not support the Local Impact program that is proposed to be available for residential CARE/FERA enrolled customers and small business that meet certain criteria. City of Solana Beach The City of Solana 'Beach is interested in seeing the costs to CEA and proposed rates for all four options, as well as impact to CEA's pro forma. The City of Del Mar City Council meets on January 19 and feedback from that meeting will be provided as additional information on January 20 and presented to the CEA Board at its meeting. FISCAL IMPACT At the Boards direction, the power supply product options will be analyzed for impact on the CEA Financial Pro Forma and CEA rates developed, to be presented to the Board at its February 18, 2021 meeting. ATTACHMENTS Letter from Sierra Club Dated January 5, 2020 SIERRA CLUB SAN DIEGO CHAPTER January 5, 2020 CEA Board Members and Staff, We at the San Diego Sierra Club are encouraged by the progress of the CEA and the inclusion of two product offerings of 50% and 100% renewably sourced energy, labeled Clean Impact and Green Impact respectively. This is consistent with the creation of this CCA and its goals of shifting quickly to "Clean" energy, as your name states. We are concerned to see the inclusion of a "Local Impact" minimum RPS product offering starting in 2021 using only 36% renewably sourced energy. This product would apparently track the RPS minimum that is raised each year according to CPUC regulations as shown in the table included at the end of this letter. We understand this recommendation was made in the interest of protecting some ratepayers from paying more money; however, given that SDG&E currently delivers 45% renewably sourced energy for its default consumer choice, this offering could potentially make the CEA responsible for an increase in GHG emissions from local electricity usage for the next four years. The inclusion of a 75% GHG Free offering will likely be confusing to the consumer. The CEA's originating Joint Powers Agreement document claims that a reason for its existence is "addressing climate change by reducing energy-related greenhouse gas emissions." Sierra Club believes that creating the potential for consumers to choose an energy product that is less than the 45% renewable they already use today, until 2025, goes against the spirit of the formation of the CEA. Asking community members who are struggling to make ends meet to either choose to save money or choose to help in the fight against Climate Crisis is wrong. In offering a product with a renewable content that is this low, the CEA would place well intended people and small business owners in an impossible position and counteract one of the main intents of Community Choice Energy. Sierra Club San Diego urges the Board to reconsider this concept of tracking the minimum RPS and instead let the CARE and FERA programs defray the cost for consumers who are most impacted. We also find the name "Local Impact" a poor choice as it is neither focusing on local renewable power procurement nor meant to impact our local region in any positive way. We should not signal to consumers that making the choice for renewable energy means having to procure energy remotely. If the CEA finds the energy landscape doesn't offer suitable local renewable sources, the Board should seek to invest in locally sourced renewables more quickly through Feed In Tariffs or new local project contracts. Thank you, Karl Aldinger Conservation Organizer San Diego Sierra Club (760) 331-7885 karl.aldinger@sierraclub.org Year Compliance Period .11PS Percentage RPS Percentage (Cyb 2011 1 0,200000 20.0000 2012 1 0.200000 20.0000 2013 1 0.200000 20.0000 2014 2 0.217000 21.7000 2015 2 0.233000 23.3000 2016 2 0.250000 25.0000 7,017 0,270000 27.0000 2018 0.290000 29.0000 2019 3 0.310000 31.0000 2020 3 0,330000 33.0000 2021 •4 0.358000 35.8000 2022 4 0.385000 38.5000 2023 4 0.413000 41.3000 2024 4 0.440000 44„0000 2025 5 0.470000 47.0000 2026 5 0.492000 49.2000 2027 0.520000 52.0000 2028 6 0.546000 54.6000 2029 6 0,572000 57.2000 2030 6 0.600000 60.0000