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Home My WebLink About2022-01-18; City Council; ; Clean Energy Alliance UpdateCA Review CKM Meeting Date: To: From: Staff Contact: Subject: Jan. 18, 2022 Mayor and City Council Scott Chadwick, City Manager Jason Haber, Intergovernmental Affairs Director jason.haber@carlsbadca.gov, 760-434-2958 Clean Energy Alliance Update Recommended Action Receive an informational report from Clean Energy Alliance Executive Director Barbara Boswell on the Clean Energy Alliance’s operations and performance. Executive Summary/Discussion The Clean Energy Alliance is a community choice energy joint powers authority that began serving electric utility customers within the cities of Carlsbad, Del Mar and Solana Beach in May 2021. Community choice energy programs allow local governments to purchase their own power, and to choose how it is generated. The cities of Escondido and San Marcos have now joined the Clean Energy Alliance to begin receiving service in 2023. This item will present an informational report summarizing the agency’s operations and performance to date, potential member agency expansions to occur in 2022, and an overview of the alliance’s 2022 operating plans, rates and priorities. Fiscal Analysis This item has no fiscal impact. Next Steps None. Environmental Evaluation Receiving a presentation does not qualify as a "project" under the California Environmental Quality Act under CEQA Guidelines Section 15378, because it does not result in a direct or reasonably foreseeable indirect physical change in the environment. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to scheduled meeting date. Exhibits None. Jan. 18, 2022 Item #7 Page 1 of 1 Tammy Cloud-McMinn From: Sent: To: Subject: egg222plant-solar@yahoo.com Tuesday, January 18, 2022 1 :59 PM City Clerk Item 7 1/18/22 Clean Energy Alliance Hello Carlsbad Mayor and City Council, All Receive -Agend a Item# 2 For the Information of the: CITY COUNCIL Date J/J-g/)a..cA ~ cc _:::::- CM ./°'ACM _/[)CM {3) / 1. Prior to a possible 27 January 2022 CPUC decision on proposed changes to the SDG&E Net Energy Metering Program, I urge the Clean Energy Alliance to make a timely submission of comments in support of protecting rooftop solar power generation and expanding clean energy access. 2. Question: If the CPUC adopts the proposed changes to the SDG&E Net Energy Metering Program, what will be the changes to the Clean Energy Alliance NEM rates and Personal Impact Option? 3. Question: . If the CPUC adopts the proposed changes to the SDG&E Net Energy Metering Program, and if rooftop solar adoption slows, what fiscal and clean energy sourcing impact would this have on the Clean Energy Alliance? Thank you for your kind attention. Best regards, Carina Chiang Carlsbad resident CAUTION: Do not open attachments or click on links unless ou recognize the sender and know the content i safe. 1 Clean Energy Alliance Update City of Carlsbad City Council January 27, 2022 CLEAN ENERGY ~ llllillll ALLIANCE Clean Energy Alliance Update •Current Status of Program •Service Expansion •Rate Update •Credit Amendment 1/27/22 2 CLEAN ENERGY ALLIANCE Current Status of Program •Participation Rate –~ 92%; 60,000 Service Accounts •Primary Reason for Opt-Out –Automatic Enrollment •Green Impact 100% Renewable Energy Enrollments -~370 •~ 170 Residential •~ 100 Non-Residential •Clean Impact 50% Renewable Energy Opt Downs -~110 •~100 Residential •~10 Non-Residential •Average 250 calls per month to Call Center •50% Calls re: Billing Inquiry 31/27/22 CLEAN ENERGY ALLIANCE Service Expansion •Escondido & San Marcos Joined CEA •April 2023 Service Launch •Implementation Plan Amendment Approve 12/30/21 •Filed with California Public Utilities Commission 12/30/21 •Anticipate CPUC certification by 3/20/22 •Evaluating Oceanside, San Clemente, & Vista Joining •2024 Service Launch 41/27/22 CLEAN ENERGY ALLIANCE Impact of Escondido & San Marcos Escondido San Marcos Current CEA Expanded CEA Total Accounts 56,348 36,820 60,000 153,168 Annual Energy (MWh)538,000 353,000 600,000 1,491,000 1/27/22 5 Service expansion will add approx. 93,168 accounts and more than double annual electric demand CLEAN ENERGY ALLIANCE Rate Update •Board Approved Rate Adjustment Effective 1/1/2022 •Maintains 2% generation cost savings compared to SDG&E •Takes into account Exit Fees paid to SDG&E •Rates to be further refined effective 2/1/2022 to ensure 2% savings is maintained 61/27/22 CLEAN ENERGY ALLIANCE CEA vs SDG&E Generation & Exit Fees 1/27/22 7 Solana Beach Carlsbad & Del Mar 0.12 0.1 0.08 0.06 0.04 0.02 0 SDGE CEA Generation Rate Comparison -Proposed Rates { SDG&E -----------------------------------------------~E~~~---- CEA 2017 Vintage ■Generation Rate ■ Exit Fees CEA Generation Rate > CEA 2020 Vintage CLEAN ENERGY ALLIANCE Projected Residential Bill Comparisons for Clean Impact -2020 Vintage PCIA (Carlsbad & Del Mar) 1/27/22 8 * 3.3% Avg Bill Increase * 2021 delivery rates used in comparisons. 2022 delivery rates are likely to increase but are not known at this time. Rate: Residential DR Current Rates Eff 3/1/21 CEA SDG&E Generation $ 30.13 $ 45.80 $ SDG&E PCIA & FF $ 14.64 $ Total Generation Related Costs $ 44.77 $ 45.80 $ SDG&E Delivery * $ 71.26 $ 71.26 $ TOTAL AVERAGE MONTHLY BILL $ 116.03 $117.06 $ GENERATION COST SAVINGS -2.25% TOTAL BILL SAVINGS -0.88% Proposed Rates Eff 1/1/22 CEA SDG&E 37.75 $ 49.64 10.90 48.65 $ 49.64 71.26 $ 71.26 119.91 $ 120.90 -1.99% -0.82% % Change CEA SDG&E 8.67% 8.38% 3.34% 3.28% CLEAN ENERGY ALLIANCE Projected Residential Bill Comparisons for Clean Impact Plus-2020 Vintage PCIA (Carlsbad & Del Mar) 1/27/22 9 * 3.3% Avg Bill Increase * 2021 delivery rates used in comparisons. 2022 delivery rates are likely to increase but are not known at this time. Rate: Residential DR Current Rates Clean Impact Plus Eff 3/1/21 CEA SDG&E Generation $ 30.13 $ 45.80 Clean Impact Plus Premium $ 0.35 SDG&E PCIA & FF $ 14.64 Total Generation Related Costs $ 45.12 $ 45.80 SDG&E Delivery* $ 71.26 $ 71.26 TOTAL AVERAGE MONTHLY BILL $ 116.03 $117.06 GENERATION COST SAVINGS -1.48% TOTAL BILL SAVINGS -0.88% $ $ $ $ $ $ Proposed Rates Eff 1/1/22 CEA SDG&E 37.75 $ 49.64 0.35 10.90 49.00 $ 49.64 71.26 $ 71.26 120.26 $ 120.90 -1.29% -0.53% %Change CEA SDG&E 8.60% 8.38% 3.65% 3.28% CLEAN ENERGY ALLIANCE Projected Residential Bill Comparisons for Clean Impact -2017 Vintage PCIA (Solana Beach Customers) 1/27/22 10 * .3% Avg Bill Decrease * 2021 delivery rates used in comparisons. 2022 delivery rates are likely to increase but are not known at this time. Rate: Residential DR Current Rates Eff 3/1/21 CEA SDG&E Generation $ 30.13 $ 45.80 $ SDG&E PCIA & FF $ 16.78 $ Total Generation Related Costs $ 46.91 $ 45.80 $ SDG&E Delivery* $ 71.26 $ 71.26 $ TOTAL AVERAGE MONTHLY BILL $ 118.17 $117.06 $ GENERATION COST SAVINGS/PREMIUM 2.42% TOTAL BILL SAVINGS 0.95% Proposed Rates Eff 1/1/22 CEA SDG&E 37.75 $ 49.64 8.75 46.50 $ 49.64 71.26 $ 71.26 117.76 $ 120.90 -6.33% -2.60% % Change CEA SDG&E -0.87% 8.38% -0.35% 3.28% CLEAN ENERGY ALLIANCE FY 21/22 Budget vs Updated Projections 1/27/22 11 Reflects rates effective 2/2/22 and current power supply costs 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 Revenue CEA Budget vs Current Projection --Expenses Reserve Contribution Cumulative Reserves & Net Surplus ■ Budget ■Current Projections CLEAN ENERGY ALLIANCE Updated Financial Forecast 1/27/22 12 Reflects rates effective 2/2/22 and current power supply costs Includes Escondido & San Marcos April 2023 Launch •Rates sufficient to recover costs over forecast period •FY 21/22 Shortfall due to short-term power supply costs •Shortfall addressed through JPMorgan credit line increase •Cost of credit & repayment reflected in projection •Expenses lower based on forward energy prices 160,000,000.00 140,000,000.00 120,000,000.00 100,000,000.00 80,000,000.00 60,000,000.00 40,000,000.00 20,000,000.00 --FY 21/22 Revenue -■ .I ■ FY 22/23 FY 23/24 FY 24/25 ■Expenses ■ Reserve Contribution ■Cumulative Reserves & Net Sur plus • FY 25/26 CLEAN ENERGY ALLIANCE Forward Price Curve of Energy 1/27/22 13 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 Jan-22Feb-22Mar-22Apr-22May-22Jun-22Jul-22Aug-22Sep-22Oct-22Nov-22Dec-22Jan-23Feb-23Mar-23Apr-23May-23Jun-23Jul-23Aug-23Sep-23Oct-23Nov-23Dec-23$/MWhSouthern California Energy Prices (SP 15) Feb-21 Jun-21 Sep-21 Dec-21 Power Supply Cost Certainty through Hedge Contracts For Existing Load: •90% 2022 •65% 2023 •40% 2024 By Year End to include Escondido & San Marcos CLEAN ENERGY ALLIANCE JPMorgan Credit Line Increase •$9.00MM increase –to available $15.00MM •Board approved 1/13/22 •Includes contingency funds related to service expansion -$3.00MM •Term remains same –1/31/2026 •Interest Rate converts from LIBOR to SOFR (Secured Overnight Financing Rate) •Sample Interest Rate calculated based on SOFR –3.60% •Credit fully obligation of CEA •No recourse in event of default to member agencies 141/27/22 CLEAN ENERGY ALLIANCE Questions/Discussion 1/27/22 15