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Home My WebLink About2022-05-26; Clean Energy Alliance JPA; ; Clean Energy Alliance Operational, Administrative and Regulatory Affairs Update~ CLEAN ENERGY ALLIANCE Staff Report DATE: May 26, 2022 TO: FROM: Clean Energy Alliance Board of Directors Barbara Boswell, Chief Executive Officer ITEM 8: 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 Expansion of Clean Energy Alliance The assessment report in connection with CEA's evaluation of the cities of Oceanside, Vista, and San Clemente ("Cities") will be presented to the Board at today's meeting. The anticipated timeline should the cities join CEA is as follows: ACTIVITY TIMING Assessment Report Results to CEA Board and May 26, 2022 Oceanside, Vista, and San Clemente City Councils Cities: Resolution to Join CEA and ist Reading June 2022 of Ordinance to Establish a CCA before the City Councils 2nd Reading of Ordinance June/July 2022 CEA: Resolution approving new cities joining July 2022 CEA/Direct preparation of Implementation Plan Amendment CEA: Draft Implementation Plan Amendment October 2022 to CEA Board CEA: File Implementation Plan Amendment December 2022 Request for Qualifications -General Counsel May 26, 2022 Admin & Regulatory Update Page 2 of4 CEA issued a Request for Qualifications for General Counsel services on April 18, 2022, with responses due May 16, 2022. The Board appointed an Ad-Hoc Subcommittee of Vice Chair Druker and Board member Acosta to evaluate the responses, conduct interviews and make recom mendation to the Board. Four (4) responses were received, and the Subcommittee is in t he process of evaluating and scheduling interviews for the week of May 30. The Subcommittee plans to bring final recommendations to the Board at its June 30, 2022, regular meeting. Return to In-Person CEA Board Meetings Staff has conducted an on-site run through of in-perso n CEA Board meetings at the San Marcos City Council Chambers and the test was a success. CEA is on track for in-person meetings once conditions are such that the Board det ermines to return to in-person. Call Center Activity Th e chart below reflects call activity to CEA's call center through April 30, 2022: Calls to Call Center 1.200 1.000 800 600 400 200 Apr-21 May-21 Jun-21 Jul-21 Au,-21 Sep,21 Oct-21 Nov~l Oa:•21 J,n-22 Feb-22 Mat-22 Apf-22 -Total C,Us -Cal$ ConnectedtoAt,ents The chart below reflects call center average seconds to answer and average call duration: 25 20 10 Jur►21 Call Center Avg Seconds to Answer Avg Call Duration Autl-22 Sep,21 Oct•2l Dec·21 -A"'ls«on:btoAnS\wr -A"IQIOuratioo May 26, 2022 Adm in & Regulatory Update Page 3 of4 Ja,-22 Feb-22 The following chart reflects the monthly and cumulative opt-outs for CEA. Opt-Out Stats 6,000 5,000 4,000 3,000 2,000 1,000 I I I I --.opr-21 M"l•n Ju~21 JIJ~I Aus•n Sep.21 Ott-21 NoY-21 • Jan-Z2 ftl:>-22 M«-22 I ·1,000 ·2,000 May 26, 2022 Adm in & Regulatory Update Page 4 of4 CEA realized a net decrease in opt outs in March of service accounts with an overall participat ion rate of 94.02%. Enrollments in CEA's power supply products are: Clean Impact -50% Renewabl e 132 Clean Impact Plus -75% Carbon Free 60,520 Green Impact -100% Renewable 395 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 & Elect ric (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 entered into by Chief Executive Officer I VENDOR NONE I DESCRIPTION I AMOUNT REGULATORY UPDATE CEA's regulatory attorney, Ty Tosdal, will provide an update to the Board on current regulat ory activities (Attachment A). FISCAL IMPACT There is no fiscal impact by this action. ATTACHMENTS Attachment A-Tosdal APC Regulatory Update Report Ian 8 Attrlrnert CEA Regulatory Update May 26, 2022 Tosdal APC Overview Net Energy Metering (R. 20-08-020) Decision on Modified Cost Allocation Mechanism (R. 20-05-003) Update: Assembly Bill 2838 Net Energy Metering The CPUC has issued a new ruling in the NEM 3.0 proceeding seeking additional input on the Proposed Decision. • Transitional rates or glide path to NEM 3.0 • Applicability of non-bypassable charges • Adoption of a community solar tariff Comments are due June 10, and reply comments are due June 24. The ruling states that the proceeding will be resubmitted for decision following reply comments. Net Energy Metering Contd. The Proposed Decision was problematic for several reasons and was held by the CPUC. • Grandfathering rules changed to substantially reduce legacy periods. • Grid Participation Charge for residential customers set at $8/kW. Eg) A residential homeowner with a 6 KW system would be charged $48 per month. • Market Transition Credit was adopted to ensure the growth of distributed resources and set at $0/kW for SDG&E customers. Compare $0/kW to $5.25/kW for SCE and PG&E customers. • NEM customers must enroll in a single TOU rate schedule per utility. • Solar parties argued for a community solar tariff but it was not adopted. Net Energy Metering Contd. The Ruling seeks input on Market Transition Credit (MTC). • MTC is based on the Avoided Cost Calculator (ACC). • The Ruling proposes an ACC Plus concept. o Adder to MTC at fixed cents/kWh o Step down over time to ACC value • Detailed questions for parties are related to policy, methodology, impacts, application. Net Energy Metering Contd. The Ruling seeks input on non-bypassable charges. • Current non-bypassable charges include the Power Charge Indifference Adjustment, Public Purpose Program Charge, Nuclear Decommissioning Charge, Competition Transition Charge, and Department of Water Resources bond charges. • The Ruling proposes that non-bypassable charges be collected on gross consumption, ie, energy usage excluding generation credit. • Detailed questions related to application to different customer groups, selection of non-bypassable charges, and process for changing rate structure in the future. Net Energy Metering Contd. The Ruling seeks input on community solar tariff. • Community solar tariffs are opt-in subscription programs that permit customers to purchase the output of a solar generating facility or facilities. • Solar parties advocated for a broader community solar tariff that improved on the existing Community Solar Green Tariff (CSGl) program restricted to customers in disadvantaged areas. o Assembly Bill 2316 would create a community solar program. • Detailed questions for parties concern benefits for renters and low-income earners, whether a 20% bill discount should be applied similar to CSGT, implementation, enforcement, and examples in other states. Decision on Modified Cost Allocation Mechanism The CPUC has approve.d a decision ordering utilities to contract with new CCA programs, including CEA, for resource adequacy that was ordered shortly before the program launched. • D. 19-11-016 ordered SDG&E to procure System RA according to load share, but made no provision for new CCA programs including CEA and SDCP. • CEA and SDCP embarked on a campaign with other new CCA programs to advocate for a resolution. • Proposed Decision orders utilities to contract with CCA programs for share of resources at t he Market Price Benchmark. • Above-market costs will be recovered through the Power Charge Indifference Adjustment ("PCIA"). • Outcome puts CEA in a stronger position to meet its compliance requirements. Update: Assembly Bill 2838 Assembly Bill (AB) 2838 would permit SDG&E to obtain recovery of excess costs related to its EcoChoice program from non-participating ratepayers, including CCA customers. • Cost recovery would need to be approved by the CPUC. • Bill upends the ratepayer indifference principle. • Bill passed the Assembly. • Referred to Senate Energy, Utilities and Communications Committee. Item 8: CEO Report • CEA Expansion • Escondido & San Marcos -April 2023 Launch • Timeline: • Implementation Plan Amendment Certified by CPUC -RECEIVED! • April 2022 -Include energy usage in CEA Year Ahead Resource Adequacy(RA) Filing with CPUC -First Procurement Related Action -FILED 5/26/22 • May 2022 -Energy Hedge Procurement Begins • July 2022 -RA requirements received from CPUC -Procurement Obligations • August 2022 -CAC Input into marketing and outreach strategy • October 2022 -Contracts for RA finalized; submittal to CPUC • October 2022 -Marketing & Outreach Begins • February 2023 -Required Noticing begins • April 2023 -Service Enrollments CLEAN ENERGY •=- ALLIANCE 3 Item 8: CEO Report • CEA Expansi on • Oceanside, Vista, San Clemente -2024 service • Timeline: • April 2022 -Results to cities • May 2022 • May 3 -Vista Council Workshop • May 26 -CEA Board Update • June 2022 -Cities consider resolution to join CEA and Ordinance establishing CCA • June 18 -Oceanside City Council • June 26 -Vista City Council • TBD -San Clemente • July 2022 -CEA approve cities joining: direct preparation of Implementation Plan Amendment • August 2022 -New Board Members Oath of Office • October 2022 -Draft Implementation Plan Amendment to CEA Board for approval • December 2022 -File Implementation Plan Amendment with CPUC 5/26/22 CLEAN ENERGY jl[,.,_; ALLIANCE 4 Item 8: CEO Report • General Counsel Request for Qualifications • Board Subcommittee: Vice Chair Druker; Board Member Acosta 5/26/22 • April 18, 2022 -RFO Issued • May 16, 2022 -Proposals Due • 4 Proposals Received • May 31, 2022 -Subcommittee Interviews • June 30, 2022 -Board Interviews/Selection CLEAN ENERGY ._':.ill ALLIANCE 5