HomeMy WebLinkAbout2022-09-13; City Council; ; Clean Energy Alliance UpdateCA Review CKM
Meeting Date: Sept. 13, 2022
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Jason Haber, Intergovernmental Affairs Director
jason.haber@carlsbadca.gov, 442-339-2958
Subject: 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, supply, and
aggregate electricity for themselves and their customers. The cities of Escondido and San
Marcos joined the Clean Energy Alliance in 2021 and customers in those cities are expected to
receive service beginning in 2023. The cities of Oceanside and Vista joined the Clean Energy
Alliance in 2022 and customers in those cities are expected to receive service beginning in
2024.
This item will present an informational report summarizing the agency’s operations and
performance to date, service expansions to occur in 2023 and 2024, and the agency’s Fiscal
Year 2022-2023 operating budget, 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.
Sept. 13, 2022 Item #11 Page 1 of 1
Update to Carlsbad
September 13, 2022
CEA Celebrates 1st Anniversary!
•Successfully launched program –92.2% Participation
•3 power supply offerings
•Clean Impact –50% Renewable
•Clean Impact Plus –75% Carbon Free
•Green Impact –100% Renewable
•Reduced Greenhouse Gas Emissions by over 50%
•Saved customers nearly $2.0M
•Net Energy Metering customers with excess generation earned more than double in Net Surplus Compensation compared to SDG&E
9/13/22 2
CEA Growth
•2021 –Escondido and San Marcos joined CEA
•CEA service expansion April 2023
•2022 –Oceanside & Vista jointed CEA
•CEA service expansion April 2024
•CEA will become 10th largest CCA in state
•Increase from ~ 60,000 accounts to ~270,000 accounts
•Increase load from 650 GWh to 2,500 GWh
9/13/22 3
CEA Comparison to Other CCAs
9/13/22 4
CEA Financial & Budget Snapshot
(Millions $)FY 21/22 Budget FY 21/22 Year End
Estimates
FY 22/23 Adopted
Budget
Revenues $57.3 $61.1 $80.8
Operating
Expenditures
$61.1 $62.6 $76.7
Net Results ($3.8)($1.5)$4.1
Other Sources 6.0 8.5 0.0
Chg in Fund Balance $2.2 $7 $4.1
Beginning Fund
Balance
($2.7)($2.7)$4.3
Ending Fund
Balance
($.5)$4.3 $8.4
9/13/22 5
FY 22/23 Budget Initiatives
•Successful launch –Escondido & San Marcos
•Marketing & Outreach
•Energy Procurement
•New Positions
•Account Services & Program Manager
•Regulatory Analyst
•Procurement Manager
9/13/22 6
Rates
•CEA rates set in January 2022, and adjusted February 2022, met goal of 2% generation cost savings
•CEA’s rates reflective of current market conditions
•Provide sufficient revenue to cover operational costs
•SDG&E 6/1/2022 rate decrease –Protested by CEA
•Average bill for customers in 2020 PCIA vintage (Carlsbad & Del Mar) slightly higher than SDG&E ~ $1.44 per month
•Average bill for customers in 2017 PCIA vintage customers (Solana Beach) lower than SDG&E ~ $5.42 per month savings
•SDG&E rates projected to increase January 2023
•Current Rates not reflective of market conditions
•CEA anticipated to return to 2% generation cost savings
9/13/22 7
Bill Comparison –rates eff 2/1/2022
9/13/22 8
Bill Comparison –rates eff 6/1/2022
9/13/22 9
Rate Outlook
•SDG&E currently undercollecting revenue
•Rate Application for rates effective 1/1/2023
•Generation rate increase
•Exit Fee (PCIA) decrease –Vintage 2020 80% decrease
•Current per kWh exit fee -$.03864
•Proposed per kWh exit fee -$.00751
•SDG&E to update rate application in November
•CEA will have better visibility into final 2023 SDG&E rates
•CEA will be reviewing rates in December 2022 with recommendation to Board in January 2023
9/13/22 10
Questions/Discussion
9/13/22 11