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Home My WebLink About2022-06-30; Clean Energy Alliance JPA; ; Clean Energy Alliance Operational, Administrative and Regulatory Affairs Update~ CLEAN ENERGY ALLIANCE Staff Report DATE: June 30, 2022 TO: FROM: Clean Energy Alliance Board of Directors Barbara Boswell, Chief Executive Officer ITEM 7: 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 Progress continues to be made related to the expansion to the cities of Oceanside, San Clemente, and Vista. City of Oceanside The City of Oceanside adopted its resolution to join Clean Energy Alliance and the first reading of the ordinance to establish a Community Choice Aggregation at its June 8 meeting and the second reading and adoption of the ordinance was held at the June 22, 2022, meeting. The ordinance will be effective on July 22, 2022. The Oceanside City Council appointed Deputy Mayor Ryan Keim as primary CEA Board Member and City Council Member Kori Jensen as alternate. City of San Clemente The City of San Clemente is scheduling a community workshop for July 12, 2022, and the resolution to join CEA and first reading of an ordinance establishing a Community Choice Aggregation for July 19, 2022. City of Vista The City of Vista is considering t he resolution to Join CEA and first reading of an ordinance establishing a Community Choice Aggregation at its City Council meeting June 28, 2022. June 30, 2022 Adm in & Regulatory Update Page 2 of5 The current timeline related to the expansion is as follows: ACTIVITY TIMING STATUS Assessment Report Results to CEA Board and Oceanside, Vista and San Clemente City Councils May 26, 2022 Complete Oceanside: Resolution to Join CEA and Adoption of Ordinance to Establish a CCA June 8 & 22, 2022 Complete San Clemente: Resolution to Join CEA and Adoption of Ordinance Community Workshop July 12, 2022 to Establish a CCA Council Consideration July 19, 2022 Vista: Resolution to Join CEA and Adoption of Ordinance to Establish a CCA Council Consideration June 28, 2022 CEA: Resolution approving new cities joining CEA/Direct preparation of Implementation Plan Amendment July 28, 2022 CEA: Draft Implementation Plan Amendment to CEA Board October 27, 2022 CEA: File Implementation Plan Amendment By December 31, 2022 Risk Oversight Committee Pursuant to CEA's Energy Risk Management Policy the Risk Oversight Committee (Committee) met May 31, 2022. The Committee reviewed recent CEA procurement activity, current portfolio positions and planning for future procurements, and portfolio mark to market and counterparty exposure. The Committee determined that CEA is in compliance with its Energy Risk Management Policy. Call Center Activity The chart below reflects ca ll activity to CEA's call center through May 31, 2022: 1,000 ,oo 100 700 600 ,oo ... ,oo ]00 Calls to Call Center June 30, 2022 Admin & Regulatory Update Page 3 of5 The chart below reflects call center average seconds to answer and average call duration: " ,0 " lO """" Jul-21 Call Center Avg Seconds to Answer Avg Call Duration June 30, 2022 Adm in & Regulatory Update Page 4 of 5 The following chart reflects the monthly and cumulative opt-outs for CEA. Opt-Out Stats 6,000 5,000 3,000 2.000 1,000 I I I ---Mey-21 Jun-21 Jol-21 AI.Je-'.21 Sep-11 Oc:t-21 N0'l-21 I Jan-22 Fttb-22 Mar-21 ADr-22 Mt)'·2'2 -1,000 CEA realized a net increase in opt outs in May of 43 service accounts with an overall participation rate of 92.29%. Enrollments in CEA's power supply products are: POWER SUPPLY PRODUCT APRIL 2022 MAY2022 Clean Impact -50% Renewable 132 136 Clean lmpactPlus -75% Carbon Free 59,415 59,378 Green Impact -100% Renewable 395 398 Resource Adequacy Compliance The Year-Ahead Resource Adequacy (RA) has begun for calendar year 2023, with the initial forecast 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. CEA anticipates receiving its final RA obligation in July 2022. Con tracts $50,000 -$100,000 entered into by Chief Executive Officer I VENDOR NONE I DESCRIPTION REGULATORY UPDATE Ju ne 30, 2022 Admin & Regulatory Update Page 5 of5 I AMOUNT CEA's Regulatory Attorney, Ty Tosdal, will provide an update to 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 lan7.t>JtmrertA CEA Regulatory Update June 30, 2022 Tosdal APC Overview SDG&E General Rate Case (A. 22-05-016) Resource Adequacy Proposed Decision (R. 21-10-002) Legislative Update: AB 2838 SDG&E Application to Terminate GTSR and DAC-GT (A. 22-05-023) Clean Energy Financing (R. 20-08-022) SDG&EGRC Summary • SDG&E seeks $286 million, or 6.7%, increase in its annual revenue requirement for electric beginning Jan!Jary 1, 2024, based on a 2024 Test Year. • SDG&E utilized the currently approved 10.2% ROE and 7.55% rate of return to calculate the requested revenue requirement increase. • Typical residential electric customer using 400 kWh/month would see a bill increase of $9.00 per month (5.6%). • SDG&E also proposes significant post-test year revenue hikes that would increase the system-wide revenue requirement for combined electric and gas by an additional 30.2% cumulatively from 2025-2027, beyond the 6.7% increase proposed for the 2024 Test Year. SDG&E GRC Contd. Major Issues 1. Test Year Increases 2. RAMP Request 3. Depreciation Rates 4. Grid Modernization 5. Clean Energy Innovations 6. Company-Owned DER Facilities 7. Wildfire and Vegetation Management 8. Smart Meters 9. CCAs 10. Electric Vehicles Resource Adequacy Proposed Decision CPUC issued a Proposed Decision adopting SCE's 24-hour proposal. • Energy providers required to have capacity to satisfy gross load profile including PRM in all 24 hours of CAISO's worst day of the month. • Worst day defined as the single day in the month that contains the hour with the highest coincident peak load forecast. • No unbundling of RA attributes. • PG&E exceedance methodology will be used to capture wind and solar values. • Current penalties, including point system adopted in D. 21-07-014, will apply to 24-hour framework. Rationale: • SCE's 24-hour proposal received greatest support from parties. • Proposal requires energy providers to maintain energy sufficiency for charging energy storage. • Restricts use-limited resources by linking resource value to its physical limitations: o Confirmation available through public RA Resource Master Database, cross-referenced with CAISO Master File. o Inclusion of resource in database renders values binding. Resource Adequacy PD Contd. Increases to Planning Reserve Margin • 16% PRM for 2023 • 17% PRM for 2024 (subject to further revision in June 2023) Additional Measures • Local and flexible requirements adopted. • ELCC values for 2023 adopted. Outstanding Issues • Transactions • Unforced capacity evaluation (UCAP) • Hedging requirement • Demand response qualifying capacity methodology Legislative Update: AB 2838 AB 2838 would have (1) clarified the Commission's right to terminate Green Tariff Shared Renewables (GTSR) programs, e.g., EcoChoice, and (2) permitted the Commission to charge non-participant ratepayers for costs associated with the program. • SDCP and CEA opposed the bill unless amended to remove the cost recovery language. • Existing statute states that non-participants shall not pay the costs of the program. • Lobby effort focused costs and violation of the ratepayer indifference principle. SDG&E agreed to drop the cost recovery language. • Bill moves forward with termination language. SDG&E Application to Terminate GTSR and DAC-GT SDG&E's application describes the history, implementation, results, and new proposals regarding its three GAP programs: GTSR, DAC-GT, and CSGT. SDG&E is seeking authorization to terminate its allocated MW portion of CSGT and DAC-GT programs. • Guidelines and geographical constraints of SDG&E's territory make projects unworkable. • CCA load departure caused customers to be ineligible or opt out. SDG&E is also seeking to recover uncollected GTSR, or EcoChoice, costs. • The application includes a request for expedited consideration to avoid ratepayer harm for the portion concerning SDG&E's GTSR program. • GTSR rates that are expected to be more than 20 times higher due to recent CCA departures leading to the costs of renewable procurement being spread over a small and shrinking number of customers. Clean Energy Financing Customer financing proposals for clean energy devices and equipment are under consideration. Eg) Electric heat pump Updated proposals were submitted June 15, 2022. • Proposals were submitted by LGSEG/SB Clean Energy, PG&E, SCE, SDG&E, SVCE and SoCal Gas. • Proposals are diverse and target different customer segments. • Financing proposals include on bill financing (OBF), rebates, energy efficiency funding, utility rates. Item 7: 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 6/30/22 • 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 10 Item 8: CEO Report • CEA Expansion 6 /30/22 • 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 8 & 22 -Oceanside City Council Approved Resolution to Join CEA and Ordinance • June 28 -Vista City Council • July 2022 • July 12 -San Clemente Community workshop • JulY. 19 -San Clemente City Council consider resolution to join CEA and Ordinance establishing CCA • July 28 -CEA approve cities joining; direct preparation of Implementation Plan Amendment • August 2022 -New Board Members Oath of Office CLEAN • October 2022 -Draft Implementation Plan Amendment to CEA Board for approval ENERGY • December 2022 -File Implementation Plan Amendment w it h CPUC ALLIANCE 11