HomeMy WebLinkAbout2020-06-18; Clean Energy Alliance JPA; ; Clean Energy Alliance Operational, Administrative and Regulatory Affairs UpdateClean Energy Alliance
JOINT POWERS AUTHORITY
DATE:
TO:
FROM:
ITEM 3:
Staff Report
June 18, 2020
Clean Energy Alliance Board of Directors
Barbara Boswell, Interim Chief Executive Officer
Clean Energy Alliance Operational, Administrative and Regulatory Affairs Update
RECOMMENDATION:
1) Receive and File Community Choice Aggregation Update Report from Interim CEO.
2) Receive Community Choice Aggregation Regulatory Affairs Report from Special
Counsel and Discuss San Diego Gas & Electric 2021 Energy Resource Recovery
Account Rate Application.
3) Approve collaborating with San Diego Community Power (SDCP) for the purpose of
participating in the 2021 San Diego Gas & Electric ERRA proceeding and engaging
NewGen to provide analytical support, for an amount not to exceed $28,358, which
represents 50% of the estimated cost. Authorize the Interim Executive Director to
sign all documents related to the partnership with SDCP, subject to General Counsel
approval.
BACKGROUND AND DISCUSSION:
This report provides an update to the Clean Energy Alliance (CEA) Board regarding the status of the
operational, administrative and regulatory affairs activities.
OPERATIONAL UPDATE
CEA is meeting its milestones for the implementation of its community choice aggregation (CCA)
program and is on track to begin serving customers in May 2021. (Attachment A -Clean Energy Alliance
Timeline of Implementation Action Items).
Pro-Forma Scenario Updates
CEA's technical consultants, Pacific Energy Advisors (PEA) continue to monitor market conditions and
update the CEA pro-forma. PEA has initiated a solicitation for resource adequacy to meet CEA's
requirements. Responses to the solicitation reflect increased costs from assumptions in the prior pro-
forma versions.
The tables below reflect updated conditions related to energy product costs, based on the following
scenarios:
• Base Assumption
o 50% Renewable Default Energy Product increasing to 100% by 2035
o 82% Portfolio Content Category (PCC) 1/18% PCC 2 Renewable Energy Product Mix
• Option 1
o 50% Renewable Default Energy increasing to 100% by 2035
o 100% PCC 1 at launch
• Option 2
June 18, 2020 Item #3 Page 1 of 11
June 18, 2020
Operational & Regulatory
Update
Page 2 of 8
o 50% Renewable Default Energy increasing to 100% by 2035
o 100% PCCl by 2023
• All three above modeled at rate parity, 1% Rate Discount & 2% Rate Discount
Base -Rate Parity
Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program• Base
Clean Energy Alliance
Fiscal Year Ending: 2020 2021 2022 2023 2024 2025
I. Revenue 9,913,235 69,767,349 71,127,161 72,508,987 73,913,166
II. Operating Expenses
Power Supply 8,988,017 60,976,876 59,978,716 61,512,028 62,261,087
Staff 50,000 235,000 600,000 618,000 636,540 655,636
Administrative Costs* 253,000 1,108,938 2,459,148 2,497,813 2,558,347 2,616,275
Subtotal Operating Expenses 303,000 10,331,956 64,036,023 63,094,529 64,706,915 65,532,998
Operating Margin (303,000) (418,721) 5,731,326 8,032,632 7,802,071 8,380,167
Ill. Financing
Interest 107,250 113,819 70,047 24,944 0
Principal 450,000 1,343,143 1,507,125 1,552,116 131,416
Subtotal Financing 557,250 1,456,962 1,577,172 1,577,059 131,416
Operating Margin Less Financing (303,000) (975,971) 4,274,364 6,455,460 6,225,012 8,248,751
IV. Cash From Financing 450,000 4,450,000
V. Other Uses
CPUC and CAISO Deposits 147,000 500,000
Collateral Deposits 0 2,500,000
Reserve Additions 495,662 3,488,367 3,556,358 3,625,449 3,695,658
Subtotal Other Uses 147,000 3,495,662 3,488,367 3,556,358 3,625,449 3,695,658
VI. Net Surplus/(Deficit) (21,633) 785,996 2,899,102 2,599,562 4,553,092
VII. Cumulative Reserve 495,662 3,984,029 7,540,387 11,165,837 14,861,495
VIII. Cumulative Net Surplus (21,633) 764,364 3,663,466 6,263,028 10,816,120
* Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles
Base -1% Discount
Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program -1% Discount
Clean Energy Alliance
Fiscal Year Ending: 2020 2021 2022 2023 2024 2025
I. Revenue 9,773,664 68,750,216 70,094,719 71,461,007 72,849,414
II. Operating Expenses
Power Supply 8,988,017 60,976,876 59,978,716 61,512,028 62,261,087
Staff 50,000 235,000 600,000 618,000 636,540 655,636
Administrative Costs* 253,000 1,108,938 2,459,148 2,497,813 2,558,347 2,616,275
Subtotal Operating Expenses 303,000 10,331,956 64,036,023 63,094,529 64,706,915 65,532,998
Operating Margin (303,000) (558,292) 4,714,192 7,000,190 6,754,091 7,316,415
Ill. Financing
Interest 107,250 113,819 70,047 24,944 0
Principal 450,000 1,343,143 1,507,125 1,552,116 131,416
Subtotal Financing 557,250 1,456,962 1,577,172 1,577,059 131,416
Operating Margin Less Financing (303,000) (1,115,542) 3,257,230 5,423,018 5,177,032 7,184,999
IV. Cash From Financing 450,000 4,450,000
V. Other Uses
CPUC and CAISO Deposits 147,000 500,000
Collateral Deposits 0 2,500,000
Reserve Additions 488,683 3,437,511 3,504,736 3,573,050 3,642,471
Subtotal Other Uses 147,000 3,488,683 3,437,511 3,504,736 3,573,050 3,642,471
VI. Net Surclus/(Deficit) (154,225) (180,280) 1,918,282 1,603,982 3,542,528
VII. Cumulative Reserve 488,683 3,926,194 7,430,930 11,003,980 14,646,451
VIII. Cumulative Net Surplus (154,225) (334,505) 1,583,777 3,187,759 6,730,287
* Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles
June 18, 2020 Item #3 Page 2 of 11
Base -2% Discount
Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program · 2% Discount
Clean Energy Alliance
Fiscal Year Ending: 2020 2021
I. Revenue 9,634,093
II. Operating Expenses
Power Supply 8,988,017
Staff 50,000 235,000
Administrative Costs* 253,000 1,108,938
Subtotal Operating Expenses 303,000 10,331,956
Operating Margin (303,000) (697,862)
Ill. Financing
Interest 107,250
Principal 450,000
Subtotal Financing 557,250
Operating Margin Less Financing (303,000) (1,255,112)
IV. Cash From Financing 450,000 4,450,000
V. Other Uses
CPUC and CAISO Deposits 147,000 500,000
Collateral Deposits 0 2,500,000
Reserve Additions 481,705
Subtotal Other Uses 147,000 3,481,705
VI. Net Surolus/(Oeficrt) (286,817)
VII. Cumulative Reserve 481,705
VIII. Cumulative Net Surolus (286,817)
2022 2023
67.733,082 69,062,278
60,976,876 59,978,716
600,000 618,000
2,459,148 2,497,813
64,036,023 63,094,529
3,697,059 5,967,749
113,819 70,047
1,343,143 1,507,125
1,456,962 1,577,172
2,240,097 4,390,577
3,386,654 3,453,114
3,386,654 3,453,114
(1,146,557) 937,463
3,868,359 7,321,473
(1,433,374) (495,911)
June 18, 2020
Operational & Regulatory
Update
Page 3 of 8
2024 2025
70,413,027 71,785,662
61,512,028 62,261,087
636,540 655,636
2,558,347 2,616,275
64,706,915 65,532,998
5,706,112 6,252,664
24,944 0
1,552,116 131,416
1,577,059 131,416
4,129,052 6,121,247
3,520,651 3,589,283
3,520,651 3,589,283
608,401 2,531,964
10,842,124 14,431,407
112,490 2,644,454
* Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles
Option 1 (100% PCCl at Launch) -Rate Parity
Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program -Rate Parity -All PCC 1 at Launch
Clean Energy Alliance
Fiscal Year Endina: 2020 2021 2022 2023 2024 2025
I. Revenue 9,913,235 69,767,349 71,127,161 72,508,987 73,913,166
II. Operating Expenses
Power Supply 9,008,910 61,168,848 60,232,062 61,785,316 62,526,043
Staff 50,000 235,000 600,000 618,000 636,540 655,636
Administrative Costs* 253,000 1,108,938 2,459,148 2,497,813 2,558,347 2,616,275
Subtotal Operating Expenses 303,000 10,352,848 64,227,996 63,347,875 64,980,203 65,797,955
Operating Margin (303,000) (439,613) 5,539,353 7,779,286 7,528,783 8,115,211
Ill. Financin9
Interest 107,250 113,819 70,047 24,944 0
Principal 450,000 1,343,143 1,507,125 1,552,116 131,416
Subtotal Financing 557,250 1,456,962 1,577,172 1,577,059 131,416
Operating Margin Less Financing (303,000) (996,863) 4,082,391 6,202,114 5,951,724 7,983,795
IV. Cash From Financing 450,000 4,450,000
V. Other Uses
CPUC and CAISO Deposits 147,000 500,000
Collateral Deposrts 0 2,500,000
Reserve Additions 495,662 3,488,367 3,556,358 3,625,449 3,695,658
Subtotal Other Uses 147,000 3,495,662 3,488,367 3,556,358 3,625,449 3,695,658
VI. Net Surplus/(Deficit) (42,525) 594,024 2,645,756 2,326,275 4,288,136
VII. Cumulative Reserve 495,662 3,984,029 7,540,387 11,165,837 14,861,495
VIII. Cumulative Net Surplus (42,525) 551,499 3,197,255 5,523,529 9,811,666
* Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Un collectibles
June 18, 2020 Item #3 Page 3 of 11
Option 1-1% Rate Discount
Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program -1% Discount and No PCC2
Clean Energy Alliance
Fiscal Year Endinq: 2020 2021 2022
I. Revenue 9,773,664 68,750,216
II. Operating Expenses
Power Supply 9,008,910 61,168,848
Staff 50,000 235,000 600,000
Administrative Costs* 253,000 1,109,006 2,460,107
Subtotal Operating Expenses 303,000 10,352,916 64,228,956
Operating Margin (303,000) (579,252) 4,521,260
Ill. Financing
Interest 107,250 113,819
Principal 450,000 1,343,143
Subtotal Financing 557,250 1,456,962
Operating Margin Less Financing (303,000) (1,136,502) 3,064,298
IV. Cash From Financing 450,000 4,450,000
V. Other Uses
CPUC and CAISO Deposits 147,000 500,000
Collateral Deposits 0 2,500,000
Reserve Additions 488,683 3,437,511
Subtotal Other Uses 147,000 3,488,683 3,437,511
VI. Net Surolus/(Deficit) (175,185) (373,213)
VII. Cumulative Reserve 488,683 3,926,194
VIII. Cumulative Net Surolus (175,185) (548,398)
2023
70,094,719
60,232,062
618,000
2,499,080
63,349,142
6,745,577
70,047
1,507,125
1,577,172
5,168,406
3,504,736
3,504,736
1,663,670
7.430,930
1,115,272
June 18, 2020
Operational & Regulatory
Update
Page 4 of 8
2024 2025
71,461,007 72,849.414
61,785,316 62,526,043
636,540 655,636
2,559,714 2,617,600
64,981,570 65,799,279
6,479,437 7,050,134
24,944 0
1,552,116 131,416
1,577,059 131,416
4,902,378 6,918,718
3,573,050 3,642,471
3,573,050 3,642,471
1,329,327 3,276,247
11,003,980 14,646,451
2,444,599 5,720,846
* Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles
Option 1-2% Rate Discount
Annual DRAFT Pro Form a Projections for a Community Choice Aggregation Program • 2% Discount and No PCC2
Clean Energy Alliance
Fiscal Year Endina: 2020 2021 2022 2023 2024 2025
I. Revenue 9,634,093 67,733,082 69,062,278 70.413,027 71,785,662
II. Operating Expenses
Power Supply 9,008,910 61,168,848 60,232,062 61.785,316 62,526,043
Staff 50,000 235,000 600,000 618,000 636,540 655,636
Administrative Costs* 253,000 1.109,006 2,460,107 2,499,080 2,559,714 2,617,600
Subtotal Operating Expenses 303,000 10,352,916 64,228,956 63,349,142 64,981,570 65,799,279
Operating Margin (303,000) (718,823) 3,504,126 5,713,136 5,431,458 5,986,383
Ill. Financing
Interest 107,250 113,819 70,047 24,944 0
Principal 450,000 1,343,143 1,507,125 1,552,116 131.416
Subtotal Financing 557,250 1,456,962 1,577,172 1,577,059 131,416
Operating Margin Less Financing (303,000) (1,276,073) 2,047,164 4,135,964 3,854,398 5,854,966
IV. Cash From Financing 450,000 4,450,000
V. Other Uses
CPUC and CAISO Deposits 147,000 500,000
Collateral Deposits 0 2,500,000
Reserve Additions 481,705 3,386,654 3,453,114 3,520,651 3,589,283
Subtotal Other Uses 147,000 3,481,705 3,386,654 3,453,114 3,520,651 3,589,283
VI. Net Surolus/(Deficit) (307.777) (1,339.490) 682,850 333.747 2,265,683
VII. Cumulative Reserve 481,705 3,868,359 7,321.473 10,842,124 14.431.407
VIII. Cumulative Net Surolus (307,777) (1,647,267) (964,417) (630,670) 1,635,013
* Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles
June 18, 2020 Item #3 Page 4 of 11
Option 2 (100% PCCl by 2023) -Rate Parity
Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program• Rate Parity• All PCC 2 at Launch
Clean Energy Alliance
Fiscal Year Endina: 2020 2021 2022
I. Revenue 9,913,235 69,767,349
II. Operating Expenses
Power Supply 8,988,017 61,018,825
Staff 50,000 235,000 600,000
Administrative Costs* 253,000 1,108,938 2,459,148
Subtotal Operating Expenses 303,000 10,331,956 64,077,973
Operating Margin (303,000) (418,721) 5,689,376
Ill. Financing
Interest 107,250 113,819
Principal 450,000 1,343,143
Subtotal Financing 557,250 1,456,962
Operating Margin Less Financing (303,000) (975,971) 4,232,414
IV. Cash From Financing 450,000 4,450,000
V. Other Uses
CPUC and CAISO Deposits 147,000 500,000
Collater•I Deposits 0 2,500,000
Reserve Additions 495,662 3,488,367
Subtotal Other Uses 147,000 3,495,662 3,488,367
VI. Net Surplus/(Deficit) (21,633) 744,047
VII. Cumulative Reserve 495,662 3,984,029
VIII. Cumulative Net Surplus (21,633) 722,414
2023
71,127,161
60,161,460
618,000
2,497,813
63,277,274
7,849,887
70,047
1,507,125
1,577,172
6,272,715
3,556,358
3,556,358
2,716,357
7,540,387
3,438,771
June 18, 2020
Operational & Regulatory
Update
Page 5 of 8
2024 2025
72,508,987 73,913,166
61,785,316 62,526,043
636,540 655,636
2,558,347 2,616,275
64,980,203 65,797,955
7,528,783 8,115,211
24,944 0
1,552,116 131,416
1,577,059 131,416
5,951,724 7,983,795
3,625,449 3,695,658
3,625,449 3,695,658
2,326,275 4,288,136
11,165,837 14,861,495
5,765,046 10,053,182
• Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles
Option 2 -1% Rate Discount
Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program• 1% Discount and Phase Out of PCC2
Clean Energy Alliance
Fiscal Year Ending: 2020 2021 2022 2023 2024 2025
I. Revenue 9,773,664 68,750,216 70,094,719 71,461,007 72,849,414
II. Operating Expenses
Power Supply 8,988,017 61,018,825 60,161,460 61,785,316 62,526,043
Staff 50,000 235,000 600,000 618,000 636,540 655,636
Administrative Costs* 253,000 1,108,938 2,459,357 2,498,727 2,559,714 2,617,600
Subtotal Operating Expenses 303,000 10,331,956 64,078,183 63,278,187 64,981,570 65,799,279
Operating Margin (303,000) (558,292) 4,672,033 6,816,532 6,479,437 7,050,134
Ill. Financing
Interest 107,250 113,819 70,047 24,944 0
Principal 450,000 1,343,143 1,507,125 1,552,116 131,416
Subtotal Financing 557,250 1,456,962 1,577,172 1,577,059 131,416
Operating Margin Less Financing (303,000) (1,115,542) 3,215,071 5,239,360 4,902,378 6,918,718
IV. Cash From Financing 450,000 4,450,000
V. Other Uses
CPUC and CAISO Deposits 147,000 500,000
Collateral Deposits 0 2,500,000
Reserve Additions 488,683 3,437,511 3,504,736 3,573,050 3,642,471
Subtotal Other Uses 147,000 3,488,683 3,437,511 3,504,736 3,573,050 3,642,471
VI. Net Surplus/(Deficit) (154,225) (222,440) 1,734,624 1,329,327 3,276,247
VII. Cumulative Reserve 488,683 3,926,194 7,430,930 11,003,980 14,646,451
VIII. Cumulative Net Surplus (154,225) (376,665) 1,357,959 2,687,287 5,963,534
* Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles
June 18, 2020 Item #3 Page 5 of 11
Option 2 -2% Rate Discount
Annual DRAFT Pro Form a Projections for a Community Choice Aggregation Program -2% Discount and Phase Out of PCC2
Clean Energy Alliance
Fiscal Year Ending: 2020 2021 2022
I. Revenue 9,634,093 67,733,082
II. Operating Expenses
Power Supply 8,988,017 61,018,825
Staff 50,000 235,000 600,000
Administrative Costs* 253,000 1,108,938 2,459,357
Subtotal Operating Expenses 303,000 10,331,956 64,078,183
Operating Margin (303,000) (697,862) 3,654,899
Ill. Financing
Interest 107,250 113,819
Principal 450,000 1,343,143
Subtotal Financing 557,250 1,456,962
Operating Margin Less Financing (303,000) (1,255,112) 2,197,937
IV. Cash From Financing 450,000 4,450,000
V. Other Uses
CPUC and CAISO Deposits 147,000 500,000
Collateral Deposits 0 2,500,000
Reserve Additions 481,705 3,386,654
Subtotal Other Uses 147,000 3,48:,705 3,386,654
VI. Net Surplus/(Deficit) (286,817) (1,188,717)
VII. Cumulative Reserve 481,705 3,868,359
VIII. Cumulative Net Surolus (286,817) (1,475,534)
2023
69,062,278
60,161,460
618,000
2,498,727
63,278,187
5,784,091
70,047
1,507,125
1,577,172
4,206,919
3,453,114
3,453,114
753,805
7,321,473
(721,729)
June 18, 2020
Operational & Regulatory
Update
Page 6 of 8
2024 2025
70,413,027 71,785,662
61,785,316 62,526,043
636,540 655,636
2,559,714 2,617,600
64,981,570 65,799,279
5.431,458 5,986,383
24,944 0
1,552,116 131,416
1,577,059 131,416
3,854,398 5,854,966
3,520,651 3,589,283
3,520,651 3,589,283
333,747 2,265,683
10,842,124 14,431,407
(387,982) 1,877,701
* Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles
The above scenarios do not reflect the financing options that the Board will be considering later in the
agenda. An updated base pro-form a will be provided to the Board reflecting the two financing options
in that staff report.
Expansion of Clean Energy Alliance
Staff has been in communication with City of Oceanside staff and provided an update regarding CEA's
implementation, staffing, start-up costs and the steps needed for an agency to join CEA prior to and
after October 1, 2020. In addition, a copy of the Joint Powers Authority Agreement was provided.
Oceanside staff indicated they would reach out with any follow up questions.
Regulatory Compliance Filings
CEA's 2020 Renewable Portfolio Standards (RPS) Procurement Plan is in process and on track to meet
the June 29, 2020 filing deadline. This report preparation is included in the current Pacific Energy
Advisors scope of work.
The Integrated Resource Plan (IRP) provides the CPUC with CEA's 10-year projected electricity load as
part of the integrated resource planning process to ensure that California's electric sector meets its GHG
reduction goals while maintaining reliability at the lowest possible costs. The IRP was originally due in
April 2020, was pushed out to July 2020, and has now been further pushed out to September 2020.
Coordination with San Diego Community Power
CEA staff has begun regular meetings with San Diego Community Power (SDCP) staff to share updates
and discuss opportunities to coordinate and collaborate for the mutual benefit of CEA and SDCP. Two
opportunities are being proposed to the Board at today's meeting, one related to SDG&E's 2021 ERRA
Application and another related to Long-Term Renewable Energy Solicitation.
June 18, 2020 Item #3 Page 6 of 11
Long-Term Renewable Procurement
June 18, 2020
Operational & Regulatory
Update
Page 7 of 8
As a load serving entity CEA will be required to procure 65% of its minimum required renewable
portfolio standards in contracts of 10-years or longer. To ensure compliance with this requirement,
work has begun in developing specification for a long-term renewable solicitation. The process of the
solicitation process, from beginning through final execution can be lengthy, and in light of the impacts of
COVID-19 on the renewable development industry, the solicitation is targeted to kick-off the end of June
2020. The Board will hear an update and discuss the solicitation process in a separate staff report.
Administrative and Operational Policies
During the coming months as CEA prepares for its implementation and operation, policies will be
brought to the Board for consideration in future Board meetings. The policies as proposed will be based
on government code or regulatory requirements and best practices of successfully operational CCAs.
The policies and timeline as currently anticipated are:
July 2020 Board Meeting
• Inclusive & Sustainable Workforce Policy
• Unsolicited Proposals Policy
• Non-Energy Procurement Policy
• Records Retention Policy
• Investment Policy
• Reserve Policy
• Bid Evaluation & Scoring System Policy
August Board Meeting
• Energy Risk Management Policy
REGULATORY UPDATE
Attached is a regulatory report from Ty Tosdal, Special Counsel, providing a summary of key regulatory
proceedings (Attachment B -Tosdal APC Energy Regulatory Update). The regulatory report includes a
discussion of the SDG&E 2021 ERRA Application which will includes a recommendation that the Board
approve partnering with SDCP in engaging a consulting firm to provide analytical support in participating
in the ERRA rate process.
FISCAL IMPACT
CEA's share of the NewGen agreement is estimated at $28,358. Funds are available in the professional
services budget to fund this request.
ATTACHMENTS:
Attachment A -Clean Energy Alliance Timeline of Implementation Action Items
Attachment B -Tosdal APC Energy Regulatory Update
June 18, 2020 Item #3 Page 7 of 11
Attachment A
Clean Energy Alliance
Timeline of Implementation Related Action Items
Date
Timing completed Description Dec-19 Jan-20
12/19/19 12/19/19 Appoint Interim Executive Director
12/19/19 & Approve & File Implementation Plan & Statement of
12/19/19 12/23/19 Intent
1/16/20 1/16/20 Direction on Bankimr: and Credit Solutions
Authorize RFP for Technical Consultant to Assist with
1/16/20 1/16/20 Reaulato,v Filings
1/16/20 1/16/20 Authorize RFP for Data Manaaer/call Center
1/16/20 1/16/20 CEA Public Outreach and Marketina Kickoff
1/20/20 1/20/20 Issue RFP for Technical Consultant & Data Manager
2/20/20 2/20/20 Select Financial Institution & Approve Financing Plan
Select Technical Consultant to Assist with Regulatory
2/20/20 2/20/20 Flllnas
2/20/20 2/20/20 Select Data Mana•er
2/20/20 2/20/20 Staff Develoo & Submit Draft Customer Notice to CPUC
2/20/20 2/20/20 Develoo Renewable Portfolio Standards Procurement Plan
2/20/20 2/20/20 Authorize Execution of Service Aitreement with SOG&E
4/20/20 4/23/20 Post CCA Bond with CPUC
4/20/20 4/23/20 Execute Service Aareement with SDG&E & Submit to CPUC
4/20/20 4/20/20 Year-Ahead Resource Adeauacv Forecast Filine:
6/30/20 Initial Resource Adecuacv Solicitation
6/29/20 File 2020 Renewable Portfolio Standards Procurement Plan
8/20/20 Aoorove lnteJZrated Resource Plan
8/31/20 File lnteJZrated Resource Plan
June 18, 2020
Feb-20 Mar-20
June 18, 2020
Operational & Regulatory
Update
Page 8 of 8
Apr-20 Mav-20 Jun-20 Jul-20 Aua-20
Item #3 Page 8 of 11
TOSDALAPC
Attachment B
ENERGY REGULATORY UPDATE
To: Barbara Boswell, CEO, Clean Energy Alliance
From: Ty Tosdal, Regulatory Counsel, Tosdal APC
Re: Energy Regulatory Update
Date: June 12, 2020
The energy regulatory update summarizes important decisions, orders, notices and
other developments that have occurred at the California Public Utilities Commission
("Commission") and that may affect Clean Energy Alliance ("CEA"). The summary presented
here describes high priority developments and is not an exhaustive list of the regulatory
proceedings that are currently being monitored or the subject of active engagement by CEA. In
addition to the proceedings discussed below, Tosdal APC monitors a number of other regulatory
proceedings as well as related activity by San Diego Gas & Electric ("SDG&E") and other
Investor-Owned Utilities ("IOUs").
1. SDG&E ERRA Forecast Proceeding (A. 20-04-014)
SDG&E filed an application to recover the cost of its electric procurement revenue
requirement forecast ("ERRA Forecast Application") on April 15, 2020. This is an annual
process designed to reconcile revenues and costs previously approved in rates with forecasts
that are informed by actual revenues and costs. PCIA rates for the following year are also
approved as part of the ERRA Forecast proceeding. SDG&E has proposed a PCIA rate as part
of its application but stresses there is uncertainty and plans to update the rate proposal with
additional data in November of this year. A final decision will be issued at the end of the year.
Specifically, SDG&E's ERRA Forecast Application seeks approval for the following:
• Forecasted 2021 revenue of $920.317 million, a decrease of $574.9 million
compared to the amounts currently effective in SDG&E's rates;
• Collectively, SDG&E's proposal would decrease the current system average rate
by 2.696 cents/KWh, or 11.24%;
1
June 18, 2020 Item #3 Page 9 of 11
TOSDALAPC
• A typical residential customer in the inland climate zone using 400 kilowatt-hours
could see a monthly summer bill decrease of 8.5% or $10.03 and a monthly
winter bill decrease of 9.2% or $9.95; and
• A system total PCIA charge of 3.413 cents/KWh for 2020 vintage customers.
ERRA Forecast proceedings are complex and involve a substantial amount of utility
accounting. At the same time, they are important proceedings because of the substantial
changes that can occur to SDG&E's rates, as well as changes to PCIA charges.that CCA
customers pay. Such changes can affect CCA program competitiveness, resource planning
and ratesetting. Additional technical analysis is required to obtain a full picture of SDG&E's
proposed changes. Customarily, CCA programs retain consultants to assist with the process of
analyzing the proposals advanced by IOUs in ERRA Forecast proceedings.
2. Resource Adequacy (R. 17-09-020)
The Commission issued a final decision on June 11, 2020, in one of the operative
RA proceedings, R. 17-09-020, adopting a central procurement model in Pacific Gas & Electric
("PG&E") and Southern California Edison (''SCE") territories, and designating these IOUs as
central buyers responsible for the purchase of local Resource Adequacy ("RA"). CCA programs
in those territories will no longer be responsible for procuring local RA and their customers will
be charged for the resources procured on their behalf by the central buyers, i.e., PG&E and
SCE. The CCA programs will be responsible for procuring system and flexible RA, as they
traditionally have.
SDG&E was exempted from central procurement because SDG&E's transmission area
is unique in that local RA requirements typically meet or exceed the system requirements. A
central buyer that procures all local capacity in the San Diego local areas would leave no
system or flexible capacity for CCA programs or other Load Serving Entities ("LSEs") to
purchase. For the time being, CCA programs in SDG&E territory, including CEA, will be
responsible for procuring a pro rata share of local RA (as well as other types of RA) based on
the size of their load. The Commission will monitor local RA in SDG&E territory and has
explicitly left the door open to adopting central procurement in the future.
The decision rejected a settlement proposal advanced by CalCCA and SDG&E to adopt
a "residual" central procurement model for local RA. The settlement proposal would have
permitted utilities and CCA programs to continue buying their own local RA and rely upon a
central buyer for any unmet or residual need. The final decision finds that the settlement
2
June 18, 2020 Item #3 Page 10 of 11
TOSDALAPC
proposal is not reasonable in light of the whole record or supported by several affected parties,
does not present a fair compromise, and did not identify a central buyer.
3. Renewable Portfolio Standard (R. 18-07-003)
The Commission issued a ruling on May 6, 2020, titled Ruling Identifying Issues and
Schedule of Review for 2020 RPS Procurement Plans ("Ruling"). The Ruling requires IOUs,
Direct Access ("DA") providers, current CCA programs, and any CCA program that intends to
serve customers in 2020 or 2021, including programs like CEA that have already filed an initial
RPS Plan, to file a Draft 2020 RPS Plan. They are due June 29, 2020. Final RPS Plans are
expected to be due in the fourth quarter of 2020.
Notably, the Ruling calls for a significant expansion of content and reporting required for
RPS Plans. A number of specific revisions to the quantitative reporting templates are now
required and the Ruling includes new detailed instructions regarding the type of narrative
information that must be included in each of the RPS Plan's fifteen sections.
Finally, the Ruling seeks comments from parties on the merits of developing a staff
proposal to amend the current RPS citation program. Currently, retail sellers are penalized for
non-compliance with mandatory filing deadlines and reporting requirements. The proposal
would expand the current citation program to include late Draft RPS Plans and late deficient
Final RPS Plans. Parties are invited to submit comments no later than June 26, 2020.
3
June 18, 2020 Item #3 Page 11 of 11