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HomeMy WebLinkAbout2021-04-22; Clean Energy Alliance JPA; ; Clean Energy Alliance Operational, Administrative and Regulatory Affairs UpdateCLEAN ENERGY ALLIANCE Staff Report DATE: April 22, 2021 TO: Clean Energy Alliance Board of Directors FROM: Barbara Boswell, Interim Chief Executive Officer ITEM 2: Clean Energy Alliance Operational, Administrative and Regulatory Affairs Update RECOMMENDATION 1)Receive and File Operational and Administrative Update Report from Interim CEO. 2)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 Update CEA is on schedule to begin mass enrollment of customers beginning May 1, 2021 and will continue through June 30, 2021. Enrollment notices have gone out with the following schedule: ENROLLMENT PHASE NOTICE DATE SENT May Enrollment — Non-SEA Notice #1 3/15 & 3/17/21 May Enrollment — SEA Notice #2 4/1/21 June Enrollment — Non-SEA Notice #1 4/1/21 May Enrollment — Non-SEA Notice #2 4/12 & 4/14/21 Call Center Activity CEA's call center opened in mid-March to coincide with the first enrollment notices. Since that time, there have been 312 total calls to the call center, with 301 calls being connected to an agent. Calls are being answered on average in 31 seconds. Through April 11, there have been 416 opt outs, resulting in April 22, 2021 Admin & Regulatory Update Page 2 of 5 a current participation rate of 99.25%. There have been no opt downs to CEA's Clean Impact power supply and no opt ups to Green Impact 100% renewable energy product. Customers that do not opt-out of CEA will be automatically enrolled in CEA at the end of their billing period in the month of enrollment. SDG&E Envision Project 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 Ca!pine 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 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 Envision project to April 2021. The postponement of the Envision go live date impacts CEA's implementation. The Envision system went live on April 4, 2021, and all indications are that SDG&E and Calpine's efforts to thoroughly test has resulted in a successful implementation. There have been no fatal issues that would disrupt CEA's launch schedule. CEA Communications and Marketing Update The CEA communications team at Tripepi Smith has completed the CEA Toolkit (Attachment B), which includes the Brand Statement, Talking Points, Pocket Guide, and PCIA Fact Sheet. CEA has begun making presentations to community groups, including the Carlsbad Chamber of Commerce Government Affairs Committee and Torrey Pines Democratic Club. Staff has been meeting with key large customers to review impacts of enrollment in CEA and answer questions. CEA has been actively monitoring social media activity and addressing topics of concern in articles and social media posts. Expansion of Clean Energy Alliance Pursuant to Board of Supervisor direction, County of San Diego and CEA staff met to discuss CEA's status and steps related to the County potentially joining CEA. A report will be presented to the CEA Board at today's meeting. April 22, 2021 Admin & Regulatory Update Page 3 of 5 Discussions with Key Potential CEA Customers Staff continues its discussions with San Diego County Water Agency (SDCWA), Encina Wastewater Authority, and Carlsbad Municipal Water District regarding Clean Energy Alliance and implications related to enrollment in CEA. SDCWA presented a CCA overview to its Board at its February 25, 2021, Board of Directors meeting. 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 ten-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. Final power purchase agreements will be brought to the CEA Board for consideration of approval. 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 consideration of approval. Contracts $50,000 - $100,000 entered into by Interim Chief Executive Officer VENDOR DESCRIPTION AMOUNT REGULATORY UPDATE CEA's regulatory attorney, Ty Tosdal, will provide an update to the Board on current regulatory activities (Attachment B). FISCAL IMPACT There is no fiscal impact by this action. April 22, 2021 Admin & Regulatory Update Page 4 of 5 ATTACHMENTS Attachment A - Clean Energy Alliance Timeline of Implementation Action Items Attachment B —Tosdal APC Regulatory Update Report April 22, 2021 Admin & Regulatory Update Page 5 of 5 Attachment A Clean Energy Alia nce limeine of Action Items CiA Program Related Timing Description Status 3rd Qtr 70 4111 tlIr 20 1st QIT 71 Apr-21 May-21 Jun-21 Jul-21 9/1/20 Marketing/Customer Outreach Plan Development & IGdcaff 9/17/20 Bid Evaluation and Criteria Scoring System Complete 9/17/20 Award Scheduling Coordinator Services Complete 11/19/20 Introduce/Adopt Energy Risk Management Policy Complete 10/15 & 11/19 10/15/20 Records Retention Policy Complete System Testing with SDG&E Complete Set up Call Center/Scripting/IVR Recordings Complete 1/21/21 Credit Solution Complete 2/18/21 CEA Default Products/programs/renewable energy policies Complete 2/1/21 Create Customer Pre- and Past-Enrollment Notices In progress 1/21/21 Social Media Policy Complete 1/21/21 Debt Management Policy Complete 2/18/21 Investment Policy Complete 3/1/21 Rate Setting Complete Energy Supply Procurement In progress 3/1/21 Customer Natidng In progress 5/1/21 Launch- 2 phases May &June 2021 I Key: Boa rd Actions/Activity Staff/Consultant Activity Marketing/Customer Outreach CCA Launch Clean Energy Alliance Board Update April 22,2021 T SDAL Ty Tosdal Tosdal APC ENERGY & ENVIRONMENTAL LAW Item 2 Attachment B Overview •SB 612 and PCIA Proposed Decision (R. 17-06-026) •Provider of Last Resort (R. 21-03-01 I) •Emergency Reliability (R. 20-11-003) Senate Bill 612 •SB 61 2 would require IOUs to offer a proportional allocation of each power product in the legacy IOU portfolio to CCA programs. •RPS resources with I 0 or more years remaining under contract must also be offered for allocation. •CCA programs can elect amount. •Unallocated legacy resources offered for sale. •Resources are valued at the Market Price Benchmark currently used in the PCIA formula. PCIA Proposed Decision •Proposed Decision lifts the annual PCIA cap. •Approves modified version of the WG 3 RPS allocation mechanism. •Rejects RA and GHG Free allocation mechanisms. •Declines to address ERRA timing issues. •Requires IOUs to hold RFI for RPS contract assignment. •Requires IOUs to file Tier 2AL justifying RA portfolio. Provider of Last Resort (POLR) •SB 520 defines a POLR as a designated LSE that provides electric service in cases where an LSE fails to provide service or otherwise fails to meet its obligations. •Currently, SB 520 designates IOUs as POLRs for their service territory. •Bill also establishes broad Commission jurisdiction over entities that serve as POLRs. Provider of Last Resort (POLR) Phase I of the proceeding will establish a framework, including: •Procurement requirements •Cost allocation •Cost recovery •Options to maintain GHG emissions reductions in the event of an unplanned LSE failure Emergency Reliability •CCA programs asked to adopt Critical Peak Pricing (CPP) programs for Summer 2021. •IOUs held workshops on non-IOU CPP programs on April 6, 202 I . •Data and time constraints prevent adoption of CPP program for Summer 2021, but data should be available for 2022. •Various demand response programs, including CPP, are currently under review by CCA programs.