The URL can be used to link to this page

Home My WebLink About2021-02-18; Clean Energy Alliance JPA; ; Clean Energy Alliance Operational, Administrative and Regulatory Affairs UpdateNEW- CLEAN ENERGY ALLIANCE Staff Report DATE: February 18, 2021 TO: Clean Energy Alliance Board of Directors FROM: Barbara Boswell,.Interim Chief Executive Officer ITEM 5: Clean Energy Alliance Operational, Administrative and Regulatory Affairs Update RECOMMENDATION 1)Approve Issuance of Interest Letter to Prospective New Member Agencies. 2)Receive and File Operational and Administrative Update Report from Interim CEO. 3)Receive Community Choice Aggregation Regulatory Affairs Report from Special Counsel. BACKGROUND AND DISCUSSION This report provides an update to the Clean Energy Alliance (CEA) Board regarding the status of the operational, administrative, and regulatory affairs activities. OPERATIONAL UPDATE CEA is meeting its milestones for the implementation of its community choice aggregation (CCA) program and is on track to begin serving customers in May 2021/June 2021. (Attachment A - Clean Energy Alliance Timeline of Implementation Action Items). CEA Launch Schedule San Diego Gas & Electric (SDG&E) has been working over the past several years on their Customer Information System replacement program, known as Envision. They had committed to, and were on track, for a January 4, 2021 go live, despite the challenges of working remote in the COVID-19 environment. With a January 2021 go live, SDG&E committed to supporting the CEA launch of May 2021. On Friday July 10, CEA staff, its regulatory attorney Ty Tosdal and data manager Calpine Energy Solutions participated in a call with San Diego Community Power and SDG&E regarding the recently approved California Public Utilities Commission (CPUC) Decision D. 20-06-003, which requires the Investor Owned Utilities (IOU) to adopt rules and policy changes designed to reduce the number of residential disconnections, provide assistance with debt forgiveness, and offer extended payment plans. The program, known as Arrearage Management Payment program, is required to be implemented by April 2021. This timing has presented a challenge to SDG&E to keep its go live date of January 4, 2021 while also meeting the requirements of the decision. SDG&E submitted a letter to the CPUC requesting an extension to September 30, 2021 for implementing the new procedures and policies required by the decision. This request was denied by the CPUC, resulting in SDG&E postponing implementation of its February 18, 2021 Admin & Regulatory Update Page 2 of 5 Envision project to April 2021. The postponement of the Envision go live date impacts CEA's implementation. CEA and its consultants have worked diligently with SDG&E to develop a launch schedule that minimized impact to CEA while also minimizing the risk of incorrect bills being sent to customers. SDG&E and CEA have agreed to a two-phased schedule with accounts transitioning to CEA in May and June 2021, and the Board authorized the Interim Chief Executive Officer to enter into a letter agreement with SDG&E memorializing the phased approach. The May 2021 Phase 1 would include the transition of Solana Energy Alliance customers to CEA as well as customers in Carlsbad and Del Mar who do not have complex billing plans. Those customers who have been identified with complex billing plans would transition in June 2021. Staff continues to work with Calpine and SDG&E to fine tune the customer list for each phase. CEA Communications and Marketing Update Work continues on CEA's communications and marketing initiatives. The updated website went live on December 1, 2020. Brand Standards (letterhead, email signatures, etc.) have been provided; social media presence has been established on Facebook, Twitter, and Instagram; creation of communications tools (FAQs, information sheets) and development of customer notices are underway. Tripepi Smith is also working on the customer outreach strategy. Community Advisory Committee The Community Advisory Committee held its special meeting on February 4, 2021. The focus of the meeting was on CEA's customer outreach and communications. The Committee Members will be identifying key community groups that CEA should engage as part of its outreach strategy. Risk Oversight Committee The Risk Oversight Committee (ROC) held its first meeting on February 4, 2021. The ROC received a report from Pacific Energy Advisors regarding power supply procurements. CEA is currently compliant with its Energy Risk Management Policy. Expansion of Clean Energy Alliance At its January 21, 2021 meeting, the CEA Board updated the Agency Outreach Matrix. Staff recommends for the next step, letters be sent to prospective agencies that provides an update on where CEA is in its CCA launch and offering to set up a meeting to initiate conversations between the agencies. Discussions with Key Potential CEA Customers Staff continues its discussions with San Diego County Water Agency (SDCWA) regarding Clean Energy Alliance and implications to SDCWA of its electric accounts within CEA territory becoming customers. SDCWA staff anticipates a SDCWA Board discussion regarding CCA at an upcoming Board meeting. CEA staff was contacted by management of Encina Wastewater Authority regarding CEA's upcoming launch, and the two agencies are working together regarding Encina's energy needs and CEA's role in meeting those needs. February 18, 2021 Adm in & Regulatory Update Page 3 of 5 Resource Adequacy Compliance As a load serving entity serving customers in 2021, CEA has an obligation to procure Resource Adequacy (RA), based on quantities allocated by CPUC and California Independent System Operator (CAISO). RA procurements do not supply any energy to CEA or its customers, rather it commits the seller to be available to supply energy to the grid if called upon by the CAISO and reduce the possibility of outages. This process is key to ensuring grid reliability. CEA successfully procured all its RA requirements and is fully compliant with its RA obligation. Long-Term Renewable Procurement As a load serving entity, CEA will be required to procure 65% of its minimum state required renewable portfolio standards in contracts of 10-years or longer. To ensure compliance with this requirement, CEA's initial renewable energy solicitation is underway. The solicitation process, from beginning through final execution can be lengthy, particularly in light of the impacts of COVID-19 on the renewable development industry. The solicitation opened on July 1, 2020, with proposals due July 27, 2020. CEA's consultant, Pacific Energy Advisors, has identified a short list of projects and negotiations are proceeding. It is anticipated final contracts will be before the Board in first quarter 2021. Staff has also begun discussions with SDG&E regarding entering into bilateral agreements for the procurement of renewable energy. These discussions are on-going, and any proposed agreement will be brought to the CEA Board for approval. Administrative and Operational Policies During the coming months as CEA prepares for its implementation and operation, policies will be brought to the Board for consideration in future Board meetings. The policies as proposed will be based on Government Code or regulatory requirements and best practices of successfully operational CCAs. The policies and timeline as currently anticipated are: February 18 Board Meeting •Investment Policy Contracts $50,000 - $100,000 entered into by Interim Chief Executive Officer REGULATORY UPDATE CEA's regulatory attorney, Ty Tosdal, will provide an update to the Board on current regulatory activities. February 18, 2021 Admin & Regulatory Update Page 4 of 5 FISCAL IMPACT There is no fiscal impact by this action. ATTACHMENTS Attachment A - Clean Energy Alliance Timeline of Implementation Action Item Attachment B —Tosdal APC Regulatory Update Report February 18, 2021 Admin 84 Regulatory Update Page 5 of 5 Attachment A. Clean Energy Mance Timeine of Action Items CCA Program Related liming Description Status 3rd Qtr '20 4drilli '20 1st QI3- '21 Apr-21 May-21 Jun-21 Jul-21 9/3120 Marketing/C_ustomer Outreach Plan Development & tGckoff 9/17/20 Bid Evaluation and Criteria Scoring System Complete 9/17/20 Award Scheduling Coordinator Services Complete 11/19/20 Introduce/Ackrpt Energy Risk Management Policy Complete 10/15 & 11/19 10/15/20 Records Retention Policy Complete ,System Testing with SDG&E In progress Set up Call Center/Scripting/1YR Recordings In Progress 1/21/21 Credit Solution Complete 2/18/21 CEA Default Products/programs/renewable energy policies 2/1/21 Create Customer Pre- and Post-Enrollment Notices In progress 1/21/21 Social Media Policy Complete 1/21/21 Debt Management Policy Complete 2/18/21 Investment Policy 3/1/21 Rate Setting Energy Supply Procurement 3/1/21 Customer Noticing 5/1/21 , Launch - 2 phases May &June 2021 Key: Board Actions/Activity Staff/Consultant Activity Marketing/Customer Outreach La unch A[Eachineirr Clean Energy Alliance Board Update February 18, 2021 T SDAL Ty Tosdal Tosdal APC ENERGY & ENVIRONMENTAL LAW Overview •SDG&E 2021 ERRA Forecast (A. 20-04-014) •SDG&E's 2020 ERRA Trigger (A. 20-12-007) •SDG&E's GRC Phase ll (A. 19-03-002) •Emergency Reliability (R. 20-11-003) SDG&E's 2021 ERRA Forecast Application •Annual proceeding updates SDG&E rates, PCIA charges and EcoChoice rates for the next year. •SDG&E has requested an extension until February 23, 2021 to implement SAPC method for bundled generation rates. •SDG&E plans to file a single advice letter incorporating ERRA Forecast and ERRA Trigger decisions into March 1, 2021 rates. SDG&E's 2020 ERRA Trigger •Final decision approves a 22-month amortization to reduce rate shock. •Decision denies CCA request for more process and relies on Energy Division to verify accuracy of proposal despite lack of support in the record. •Access to data remains an ongoing issue under discussion with SDG&E. SDG&E's General Rate Case Phase II •SDG&E is proposing as part of a settlement agreement: •To adopt a sales forecast that does not take into account departing load for November nd December 2021; and •To file a standalone application to update sales forecast for 2022. •CEA and SDCP filed a motion for party status, and it has been granted. •Statements are due next week regarding conflicts between the ERRA decision and SDG&E's proposals. Emergency Reliability •Commission has ordered IOUs to buy capacity (resource adequacy) to serve load in Summer 2021. •Purpose of the order is to avoid power shortages that occurred in Summer 2020. •No specific capacity levels are identified. •Costs to be recovered through the the Cost Allocation Mechanism (CAM). Supporting Materials Supporting materials referenced in this presentation can be found at the following link: https://www.dropbox.com/shigtxam8z50t24wtIMAAS7aUH2eq vY4E8VDczz82ca?d1=0