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Home My WebLink About2021-05-27; Clean Energy Alliance JPA; ; Exhibits-2021-05-27CLEAN ENERGY ALLIANCE Regular Board Meeting May 27, 2021 CLEAN ENERGY ALLIANCE Item 4: Administrative and Regulatory Update Item 4: Administrative a Regulatory Update •Recommendation: •Receive and File Operational Et Administrative Update Report. •Receive CCA Regulatory Affairs Report. CLEAN ENERGY ALLIANCE 5/27/21 4 Item 4: Administrative Et Regulatory. Update 5/27/21 •Call Center Activity through 5/16/21 •Total Calls - 1,370 •Connected to agent - 1,339 •Average answer time - 9 seconds •Opt Outs •Total Non-SEA - 2,262 •Participation - 96.1% •Total including SEA - 3,071 •Participation - 95.33% •Opt up to Green Impact - 66 •Opt Down to Clean Impact - 0 CLEAN ENERGY ALLIANCE 5 Item 4: Administrative Et Regulatory Update •Customer Outreach •Chamber Green Business Expo Booth •Encinitas and North County Democratic Club Presentation •Carlsbad Unified School District meetings •Solana Beach School District meeting CLEAN ENERGY ALL IANCE 5/27/21 6 Item 4: Administrative Et Regulatory 1 Update •Regulatory Update - Ty Tosdal, Tosdal APC CLEAN ENERGY ALLIANCE 5/27/21 7 CLEAN ENERGY ALLIANCC Item 5: CEA Proposed Fiscal Year 21/22 Budget 1 Item 5: Proposed CEA FY 21/22 Budget •Recommendation: •Review proposed Clean Energy Alliance Fiscal Year 21/22 Budget and Schedule adoption for June 24, 2021 CLEAN ENERGY ALLIANCE 5/27/21 9 1 Item 5: Proposed CEA FY 21/22 Budget •Assumptions: •7% opt out rate - current opt out rate under 5% •Power supply costs based on actual executed contracts and April forward price curves •Consulting services based on approved contracts •Reserve contribution to achieve 5% of revenue •Reflects Board direction to continue existing contracts through FY 21/22 CLEAN ENERGY ALLIANCE 5/27/21 10 •Sufficient revenue generated to cover costs based on assumptions listed above Item 5: Proposed CEA FY 21/22 Budget •Current Energy Market •Forward price curves have been increasing •Concerns about summer reliability •Impacts of Texas winter weather events on gas prices •Low California reservoir levels •Diablo Canyon unit 2 concerns •If prices continue to increase, CEA wilt need to adjust rates to cover costs •Staff is monitoring market and anticipates bringing updatedstAN Board in fall ENERGY ALLIANCE 5/27/21 11 Item 5: Proposed CEA FY 21/22 Budget •Proposed additions: •Programs/Key Account Manager - $50,000 •Identify and develop initial CEA programs •Work with Key Accounts •Can be provided on interim contract basis •Human Resources Consultant - $40,000 •Develop staffing plan, job descriptions, personnel policies •Provide recruitment services •Not included in draft budget CLEAN ENERGY ALLIANCE 12 5/27/21 Item 5: Proposed CEA FY 21/22 Budget Projected Revenue from Energy Sales $53,573,000 Estimated Expenditures $51,547,500 Net Results of Operations $2,025,500 Beginning Reserves $1,050,000 Projected Ending Reserves $3,075,500 % of Revenue 5.74% CLEAN ENERGY 41111110.- ALLIANCE 5/27/21 13 CLEAN ENERGY ALLIANCE Questions/Discussion 5/27/21 CLEAN ENERGY ALLIANCE Item 6: Adopt Resolution Establishing Policy for Adding New Members to Clean Energy Alliance 5/27121 Item 6: Policy Adding New Members to 1 CEA 5/27/21 CLEAN ENERGY e - ALLIANCE 16 •Recommendation: •Adopt Resolution No. 2021-011 Establishing Policy for Adding New Members to Clean Energy Alliance. uItem 6: Policy Adding New Members to S CEA •Section 2.4 of CEA Joint Powers Agreement, for new members after October 1, 2020: •Adoption of Resolution by 2/3 vote of entire CEA Board authorizing membership •Adoption of Ordinance by proposed member •Payment of a membership fee, if any •Satisfaction of any other condition established by the CEA Board CLEAN ENERGY ALLIANCE 17 5/27/21 Item 6: Policy Adding New Members to 1 CEA •Proposed Policy: •Positive feasibility for prospective member load using CEA's pro forma and assumptions •Addition does not create financial burden for CEA •Addition is consistent with goals of CEA •Costs related to adding new member to CEA borne by prospective member •New member eligible for reimbursement within three years of CA service •Costs related to CCA launch in new member territory •CEA would consider using reserves or other financing sources CLEAN •Board has flexibility to waive or add conditions as appropriate ENERGY e•- •ALLIANCE 5/27/21 18 CLEAN ENERGY ---/I11111 ALLIANCE Questions/Discussion 5/27/21 CLEAN ENERGY 11/11.- ALLIANCE Item 7: Response to San Diego County re: CCE Inquiry Item 7: Approve Response to County re: CCE Inquiry •Recommendation: •Approve response to County of San Diego requesting CCE information. CLEAN ENERGY ALLIANCE 5/27/21 21 Item 7: Approve Response to County re: CCE Inquiry •Background •April 6, 2021 - County adopted Guiding Principles and directed staff to engage CEA and San Diego Community Power regarding CCE •April 18, 2021 - County sent letter to CEA inquiring CEA and membership •April 22, 2021 - CEA Board directed staff to prepare response to County Letter CLEAN ENERGY ALLIANCE 5/27/21 22 Item 7: Approve Response to County re: CCE Inquiry •Guiding Principles: •Prioritize social equity and environmental stewardship •• Provide cost competitiveness compared to the incumbent utility •Achieve 100% renewable electricity by 2030;encourage within- County buildout of renewable energy, battery storage and energy efficiency programs; and prioritize Category 1 renewable energy •Support requirements for prevailing wages, as defined in California Labor Code section 1770 et seq., and skilled and trained workforce, as defined in California Public Contract Code section 2601, for CCc: owned generation, feed-in-tariff and energy efficiency projects. c_,LEAN ENERGY ALLIANCE 5/27/21 23 Item 7: Approve Response to County re: CCE Inquiry •Guiding Principles (cont): •Encourage the development of equitable jobs pipeline for individuals from communities of concern; the use of bid evaluation policy prioritizing the selection of new local renewable energy and storage projects; and the workforce development criteria prioritizing the use of State-certified apprenticeship and proper assignment of work to crafts that traditionally perform the work, as permitted by applicable law. •Limit General Fund Liability. 5/27/21 CLEAN ENERGY ALLIANCE 24 Vt Vt ,/ Item 7: Approve Response to County re: CCE Inquiry GP1 GP2 GP3 GP6 GP4 GP5 Joint Powers Agreement Inclusive & Sustainable Workforce Policy Bid Criteria Policy Adopted Rates Power Supply Product Offerings * County Guiding Principles are aligned with CEA's policies and commitments — meeting new member addition policy condition * CEA official documents and policies reflect alignment with County Guiding Principles CLEAN ENERGY ourp.- ALLIANCE 5/27/21 25 Item 7: Approve Response to County re: CCE Inquiry •Specific Questions •CEA Rates vs SDGE •Membership fees, if any •Current or anticipated payment obligations of JPA members •Liabilities County may incur by joining •Rates for new members vs current members •Process to join and deadlines •Rollout of CCE in 2023 - all at once or phases •Role of County staff •Recent pro forma 5/27/21 CLEAN ENERGY ALLIANCE 26 Item 7: Approve Response to County re: CCE Inquiry •CEA response: •Response consistent with CEA policy •Consistent with practices related to founding members •Costs reimbursed within 3 years of CCE service •Generation rates same across cities •Timeline •Established to ensure meeting CPUC deadline for 2023 CCE implementation •CEA wilt submit its response by June 1 as requested 5/27/21 CLEAN ENERGY ALLIANCE 27 CLEAN ENERGY J ALLIANCE Questions/Discussion CLEAN ENERGY ALLIANCE Item 8: Approve Long-Term Renewable Agreement with Shell Energy North America =1111111.11..M.M.M11111111 orTrem 8: Long-Term Renewable Energy Agreement with Shell Energy North America •Recommendation: •Approve entering into a long-term renewable energy agreement with Shell Energy North America for Portfolio Category 1 renewable energy and authorize the Interim Chief Executive Officer to execute Transaction Confirmation, for an amount not to exceed $6,000,000, in a form substantially as attached, subject to Transactions Attorney •approval. CLEAN ENERGY ALLIANCE 5/27/21 30 ern 8: Long-Term Renewable Energy Agreement with Shell Energy North America •Background: •SB350 requires 65% of state mandated renewable energy standards be in contracts of 10-years or longer, beginning in 2021. •Solana Energy Alliance was required to comply with that requirement since it served customers through May 2021. •Through its solicitation process, SEA selected Shell Energy North America to fulfill the requirement. •With the transfer of SEA customers to CEA, the long-term requirement for those customers transfers to CEA CLEAN ENERGY •Execution of this agreement ensures compliance with SB350 ALLIANCE 5/27/21 31 pp oimminiminniesim em 8: Long-Term Renewable Energy Agreement with Shell Energy North America •Consistent with CEA goals, the renewable energy will be from in-state category 1 sources. •Pricing is within pro forma costs. •Sufficient revenue will be generated to pay the costs through the term of the contract at CEA's current rates. •CEA has long-term renewable contracting requirements beyond this agreement and continues to negotiate with ottwEAN suppliers. ENERGY ALLIANCE 5/27/21 32 CLEAN ENERGY ALLIANCE Questions/Discussion