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Home My WebLink About2022-03-31; Clean Energy Alliance JPA; ; Clean Energy Alliance Operational, Administrative and Regulatory Affairs Update~ CLEAN ENERGY ALLIANCE Staff Report DATE: March 31, 2022 TO: FROM: Clean Energy Alliance Board of Directors Barbara Boswell, Chief Executive Officer ITEM2: Clean Energy Alliance Operational, Administrative and Regulatory Affairs Update RECOMMENDATION 1) Receive and File Operational and Administrative Update Report from Chief Executive Officer. 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 operational, administrative, and regulatory affairs activities. OPERATIONAL UPDATE CEA Outreach Activities CEA staff will be participating in two unique outreach activities during the month of April: A Regional Energy Procurement Workshop organized by Cleantech San Diego and the Carlsbad Chamber of Commerce Green Business Expo. In response to the development community's questions regarding energy procurement by the load serving entities in the San Diego region, Cleantech San Diego has organized a webinar to provide an opportunity for CEA, San Diego Community Power and San Diego Gas & Electric to answer questions and discuss opportunities re lated to energy procurements to meet the needs of the region. The webinar is scheduled for April 13. Once again, CEA is looking forward to participating in the Carlsbad Chamber of Commerce Green Business Expo, to be held at the Carlsbad Flower Fields on April 20. Staff will be available to answer questions, provide information about CEA's clean energy goa ls and encourage enrollments in CEA's 100% renewable Green Impact power supply. March 31, 2022 Admin & Regulatory Update Page 2 of 5 Expansion of Clean Energy Alliance In connection with CEA's evaluation of the cities of Oceanside, Vista, and San Clemente ("The Cities") joining CEA with a potential 2024 service launch, CEA has received energy usage for those cities and is in the process of analyzing the data. The assessment reports related to the service expansion to these cities will be presented to the CEA Board at the April Board meeting. Should the results of the assessment report be favorable, and the CEA Board indicate a desire to expand into the cities, the following timeline is anticipated: ACTIVITY TIMING Assessment Report Results to CEA Board and April 2022 Oceanside, Vista, and San Clemente City Councils Resolution to Join CEA and 1st Reading of May 2022 Ordinance to Establish a CCA before the City Councils 2nd Reading of Ordinance May/June 2022 Resolution approving new cities joining July 2022 CEA/Direct preparation of Implementation Plan Amendment Draft Implementation Plan Amendment to October 2022 CEA Board File Implementation Plan Amendment December 2022 CEA Potential Growth through 2024 350,000 300,000 Vl ..., 250,000 C ::, 200,000 0 u u <i 150,000 -0 :ii: 100,000 50,000 Initial Phase lExp Phase 2Exp (potential) -Accounts -Load (Gwh) 3,000 2,500 2,000 ..c 3 1,500 <D -0 re 1,000 0 _J 500 CEA meeting with San Diego Gas & Electric Executive Team March 31, 2022 Admin & Regulatory Update Page 3 of5 At the request of San Diego Gas & Electric (SDG&E), quarterly meetings have been scheduled between CEA and SDG&E Executive team to discuss items of mutual interest. The first quarterly meeting was held Friday March 25, 2022, with Board Chair Becker and Chief Executive Officer Barbara Boswell in attendance. Return to In-Person CEA Board Meetings Staff has continued to evaluate options related to in-person CEA board meetings. A separate report will be presented to the Board at today's meeting. Call Center Activity The chart be low reflects ca ll activity to CEA's call center through February 28, 2022: Calls to Call Center 1.200 1,000 600 •oo 200 M••21 4pr•21 M,_,,-21 Jun-21 Jul-21 Aur-21 Sep-21 OCt-21 Nov-21 D11e-2..l Jan-22 Feb-22 -rotll CIiis -c,-,.s Connect.d1o Ajent.f The chart be low reflects call center average seconds to answer and average call duration: 3S 30 " 20 15 10 Mu•21 Apl-21 Ju~21 Call Center Avg Seconds to Answer Avg Call Duration Jul-21 S.p-21 -Avs Secomh to Ans....et -Ava: ~II 0,HltiO'I No'r-21 March 31, 2022 Adm in & Regulatory Update Page 4 of5 Otc-21 ftb-22 The following chart reflects the monthly and cumulative opt-outs for CEA. Opt-Out Stats •.mo ,.mo ,.mo 3,000 2.000 LtxlO I I I --M•ll Apr-21 Ma.,.-21 Jun-21 Jul-21 A.Uf-21 !rlep-21 OC.1·21 Nov-21 I Jat-22 ·l.000 -MonthlyOpt-OLASta?S -curT'IIJ«-tveOpt-OUIS March 31, 2022 Admin & Regulatory Update Page 5 of5 CEA realized a net increase in opt outs in January of 10 service accounts and overall participation rate of 92.51%. Enrollments in CEA's power supply products are: Clean Impact -50% Renewable 122 Clean Impact Plus -75% Ca rbon Free 59,571 Green Impact -100% Renewable 384 Resource Adequacy Compliance The Year-Ahead Resource Adequacy has begun for calendar year 2023, with the initial forecast due to be filed in April 2022. CEA is coordinating with San Diego Gas & Electric (SDG&E) for its 2023 forecast related to accounting for Escondido and San Marcos customers transferring from SDG&E to CEA in 2023. Contracts $50,000 -$100,000 en tered into by Chief Executive Officer VENDOR DESCRIPTION AMOUNT Maher Accountancy Provide full-service accounting services $100,000 To meet CEA's growing accounting needs, Maher Accountancy has been engaged to provide full-service accou nting services including accounts payable, accounts receivable, t ransaction analysis and financial reporting. As accounting information is transitioning to Maher the next Treasurer's report will be presented at the April Board meeting for transactions through February 2022. REGULATORY UPDATE CEA's regulatory attorney, Ty Tosdal, will provide an update t o the Board on current regulatory activities (Attachment A). FISCAL IMPACT There is no fiscal impact by this action. ATTACHMENTS Attachment A -Tosdal APC Regulatory Update Report Clean Energy Alliance Regulatory Update March 31 , 2022 T n SDAL ENERGY & ENVIRONMENTAL LAW Attachment A Overview • Provider of Last Resort {R. 21-03-011 ) • SDG&E RPS Voluntary Allocation and Market Offer {R. 17-06-026) • SoCal Gas Fine (R. 13-11-005) • Provider of Last Resort PG&E argues that in addition to Financial Security Requirements (FSRs), POLR requires liquidity in the event of a mass return of customers and has proposed an insurance pool to be funded according to load share. • Problem: Energy purchases must be made immediately when customers return to ensure adequate resources, but the current FSR mechanism does not provide for cash flow. • Analysis: Current framework imposes cost shift on IOU customers. Two months of cash flow are needed before new customer revenue begins flowing. • PG&E Proposal: • Establish a credit facility to be drawn upon by IOU for energy purchases in the event of a mass return of customers. • Pool funded by CCA programs with cash or letters of credit. • Draws on pool by utility refunded by failing CCA program customers through non-bypassable charge. • Provider of Last Resort CalCCA argues that PG&E's liquidity pool is unworkable and that traditional balancing account treatment should be used. Arguments: • Real issue is financing costs, not liquidity. • Financing costs can be obtained through the commercial paper rate that is traditionally applied to balancing accounts. • Cost Allocation Mechanism adjustments will mitigate resource needs. • Changes to FSRs should be adequate to address financing costs. • Provider of Last Resort New proposed legislation, Senate Bill 1287, would raise Financial Security Requirements (FSR) amounts: • Establishes a minimum $500,000 financial security requirement for CCA programs, instead of the current $147,000 minimum; and • Requires FSR amounts to be based on 12 months, rather than the current 6 months of procurement costs. • Provider of Last Resort Next Steps: • March 28, 2022 -Workshop comments due. • April 15, 2022 -Replies due. • Q2, 2022 -Evidentiary hearings scheduled. • Q4, 2022 -Proposed decision issued . • RPS VAMO RPS Voluntary Allocation and Market Offer (VAMO) is a process that allows CCA programs to purchase power allocations from utility portfolios. • Approved in PCIA proceeding to implement utility "portfolio optimization" and correct the resource imbalance that results from customers leaving for CCA service. • CCA programs contract for an allocation that represents a "slice" of the utility portfolio. • Pricing set at RPS Market Price Benchmark (MPB), which is revised annually to capture market price of renewables. SDG&E submitted Advice Letter 3962-E on February 28, 2022, seeking approval for a pro forma contract. • SDG&E's Advice Letter raised issues around pricing, data and discretion over the resource pool and collateral requirements. • CalCCA filed protests to PG&E, SCE and SDG&E's Advice Letters with our collaboration. • RPS VAMO • April 2022 -As part of the ERRA Meet & Confer Process, the IOUs will finalize the CCAs' potential VAMO shares based on vintaged, annual load forecasts. • May 2022 -CCAs will inform IOUs of their interest in Voluntary Allocation shares and finalize their elections. Payment based on the 2023 RPS MPB will be due upon election. • June 2022 -IOUs and CCAs include the proposed Voluntary Allocations in their 2022 RPS Plans. • December 2022 -Commission expected to issue a decision on 2022 RPS Plans and address VAMO. • January 2023 -IOUs file final RPS VAMO Plans to comply with Commission decision. • 21 Days After Final RPS Plans -IOUs commence Voluntary Allocations. • October 2023 -Initial payments trued-up based on updated RPS MPB. • SoCal Gas Fine SoCal Gas has been fined $9.8 million and ordered to repay all ratepayer funds that were improperly used to lobby against local and other reach codes. • Reach codes go beyond current bu ilding codes in state law to achieve energy efficiency and emissions goals. • Reach codes have the effect of reducing gas consumption in many cases. • Substantial advocacy was related to appliance standards, including dishwashers, pool pumps, cook tops, heat pumps, portable air conditioners, and fans. • SoCal Gas prohibited from using ratepayer funds for any standards activity until policy changes are made. • CLEAN ENERGY ALLIANC E Regular Board Meeting March 31, 2022 Item 2: CEO Report • CEA Expansion 3/31/22 • Oce?nside, Vista, San Clemente Assessment Underway -2024 service • Timeline: • April 2022 -Results to CEA Board and cities • Meeting with cities scheduled • Results to CEA Board April Board Meeting • May/ June 2022 -Cities consider resolution to join CEA and Ordinance establishing CCA • July 2022 -CEA approve cities joining; direct preparation of Implementation Plan Amendment • October 2022 -Draft Implementation Plan Amendment to CEA Board forCLEAN approval ENERGY • December 2022 -File Implementation Plan Amendment with CPUC ALLIANCE 3 3/31/22 Item 2: CEO Report CEA Potential Growth through 2024 350,000 300,000 !'.l 250,000 C 5 200,000 u u ~ 150,000 0 ~ 100,000 50,000 Initial Phase 1 Exp Phase 2 Exp (potential) -Accounts -Load (Gwh) Initial -2021 -Carlsbad, Del Mar, Solana Beach Phase 1 Exp -2023 -Escondido, San Marcos Phase 2 Exp -2024 -Oceanside, San Clemente, Vista 3,000 2,500 2,000 ::2 ?; 1,500 ~ "O "' 1,000 3 500 Phase 1 142% increase# Accts 137% Increase Load Phase 2 92% increase# Accts 76% increase Load CLEAN ENERGY ~- ALLIANCE 4 Item 3: CEO Report • Outreach Activities • April 13 -Cleantech San Diego Procurement Webinar • CEA/SDCP/SDG&E • For Cleantech San Diego Membership 3/31/22 • Local renewable developers • Doing business w ith the local load serving entities • April 20 -Carlsbad Chamber Green Business Expo • Carlsbad Flower Fields CLEAN ENERGY --~ . ALLIANCE 5 Item 3: CEO Report • CEO/Chair meeting with SDG&E Executive Team • CEA Planned Expansions • Opportunities to improve working relationship • Recurring Quarterly 3/31/22 CLEAN ENERGY ALLIANCE 6