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Home My WebLink About2020-07-23; Clean Energy Alliance JPA; ; Presentations and ExhibitsClean Energy Alliance JOINT POWERS AUTHORITY Special Board Meeting July 23, 2020, 3 p.m. Hosted by the City of Carlsbad 7/23/20 CLEAN ENERGY ALLIANCE- FINAL 1 Item 1: Clean Energy Alliance Integrated Resource Plan Presentation Barbara Boswell, Interim Chief Executive Officer John Dalessi, Pacific Energy Advisors 7/23/20 CLEAN ENERGY ALLIANCE- FINAL 2 Item 1: Integrated Resource Plan • Recommendation 0 Receive Informational Item on Integrated Resource Plan 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 3 Item 1: Integrated Resource Plan • All CPUC jurisdictional load serving entities must file an IRP with the CPUC every two years • 2020 IRP consists of a narrative template, resource data template, and clean system power calculator (GHG calculator) showing planned energy and capacity resources through 2030 • Plans are assessed for reliability, greenhouse gas emissions, and local air pollutant minimization in disadvantaged communities • Two plans wills be required, consistent with a statewide GHG emission limit for the electric sector for 2030 of 46 MMT and a lower limit of 38 MMT 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 4 Item 1: Integrated Resource Plan 2030 GHG Benchmarks LSE Proportion 2030 Proportion 2030 GHG 2030 GHG of 2030 Load of 2030 emissions emissions emissions (GWh) Load benchmark benchmark inclusive of within (MMT) --46 (MMT) -- 38 industrial IOU MMT MMT load* Territory scenario scenario SDG&E Area Bundled 5,366 29.46% 1.198 0.990 Direct Access 3,940 . 21.63% 0.880 0.727 Clean Energy Alliance 8.84% 992 5.45% 0.222 0.183 Solana Energy Alliance 0 0.00% 0.000 0.000 San Diego Community Power 7,914 43.45% 1.768 1.4601 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 5 Item 1: Integrated Resource Plan • Reference System Portfolio o CPUC's Reference System Portfolio (RSP) represents the optimal (least cost) mix of resources to reliably meet electric sector's GHG emissions targets o CPUC modeling has identified the statewide Reference System Portfolio for the 46 MMT target and an alternative portfolio that would achieve a 38 MMT target o Both include large amounts of new solar, wind, and battery storage resources, as well as long-duration storage and out-of- state wind on new transmission 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 6 Shed DR Pumped Storage • Battery Storage Solar Wind 00S New Tx Wind 2021 2022 2023 2024 2026 2030 Gas Capacity Not Retained Item 1: Integrated Resource Plan Cumulative Buildout of New Resources in RSP 25,000 2 20,000 ra co 15,000 10,000 -a 5,000 L.) "T) 0 2020 -5,000 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 7 11111/11111111Nrilli • Shed DR I. Pumped Storage • Battery Storage Customer Solar Solar Wind 005 New Tx a Wind • Geothermal Biomass Hydro (Small) • Hydro (Large) C Hydro (NW scheduled Imports) a Gas • CHP Nuclear 2026 2030 Item 1: Integrated Resource Plan Cumulative Resources in RSP 120,000 111111111111111111 MEM MEE 11111111111111111111111 11111111111111111111 2020 2021 2022 2023 2024 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 8 100,000 80,000 60,000 a 3 Li 40,000 20,000 0 CEA Renewable Energy Portfolio Content iiiiiiIiI 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Item 1: Integrated Resource Plan Planning Assumptions for CEA's IRP • Planned renewable energy portfolio targets (PCC 2 phase out?) • Planned generation mix (solar, wind, nat. gas, batteries, etc.) for energy and capacity • Assumptions regarding new buildout vs. use of existing resources • Geographic regions for planned resources 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 9 Item 1: Integrated Resource Plan • Next Steps o Late July- Mid August: PEA to prepare IRP draft o August 20: Board review and approval o Assumes templates available from CPUC timely O September 1: IRP submission to CPUC 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 10 Item 1: Integrated Resource Plan Board Questions/Discussion 7/23/20 CLEAN ENERGY ALLIANCE- FINAL 11 Item 2: Clean Energy Alliance Credit Solution Update Barbara Boswell, Interim Chief Executive Officer 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 12 Item 2: Clean Energy Alliance Credit Solution Update • Recommendation: 0 Receive Update regarding CEA Credit Solution 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 13 Item 2: Clean Energy Alliance Credit Solution Update • Background: 0 June 18, 2020 CEA Board received report regarding financing options o River City Bank — selected as preferred option o JP Morgan 0 Funding Need: $1,000,000 Funding for FY 20/21 Operating Budget $450,000 Repayment of Initial Advances to Member Agencies $500,000 CAISO Deposit $2,500,000 Lockbox Reserves and Cash Flow $4,450,000 Total Funding needed 7/23/20 CLEAN ENERGY ALLIANCE- FINAL 14 Item 2: Clean Energy Alliance Credit Solution Update • River City Bank O $105,000 lower interest/costs than JP Morgan O Requires Security from Member Agencies o Cash Collateral O Guaranty O Pro Rata Guaranty by Agency AGENCY % OF LOAD PRO-RATA SHARE $ OF GUARANTY CARLSBAD 90% $2,250,000 $75,000 $175,000 DEL MAR SOLANA BEACH 3% 7% 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 15 Item 2: Clean Energy Alliance Credit Solution Update • Requested Members to consider Guaranty O July 8 Solana Beach Authorized Guaranty O July 20 Del Mar Authorized Guaranty O July 14 Carlsbad considering an alternative • Provide Funding Needed o Carlsbad City Council considering terms July 28 o Would need to come back to CEA Board to Authorize financing from Carlsbad 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 16 Item 2: Clean Energy Alliance Credit Solution Update • Benefits to CEA of Carlsbad Option: o Reduced costs related to elimination of loan fees charged by both banks; o Lower interest rate terms (possibly Carlsbad Treasurer's Avg Yield + 1%); o Cash flow benefit of annual interest payments vs monthly with banks o Streamlined process for executing the loan agreement and drawing down the funds. 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 17 Item 2: Clean Energy Alliance Credit Solution Update Board Discussion 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 18 Item 3: Clean Energy Alliance Regulatory Update Barbara Boswell, Interim Chief Executive Officer Ty Tosdal, Tosdal APC 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 19 Item 3: Clean Energy Alliance Regulatory Update • Recommendation O 1) Authorize filing protest of San Diego Gas & Electric Expedited Application 20-07- , Under the Power Charge Indifference Adjustment Account Trigger Mechanism. O 2) Authorize filing motion for party status of San Diego Gas & Electric 2021 ERRA Application 20-04-014. O 3) Direct staff to bring a draft Policy on Delegation of Authority to CEO Regarding Regulatory and Legislative Matters to the Board for consideration. 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 20 Item 3: Clean Energy Alliance Regulatory Update • Report from Special Counsel Ty Tosdal • Board Discussion 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 21 Item 4: Clean Energy Alliance Community Advisory Committee Timeline Barbara Boswell, Interim Chief Executive Officer 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 22 Item 4: Cornmunity Advisory Cornmittee • Recommendation o Review, Discuss and Approve Community Advisory Committee Timeline 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 23 Item 4: Cornmunity Advisory Cornmittee • Background o July 16, 2020 CEA Board reviewed & Approved Community Advisory Committee 0 Requested Timeline to return for discussion 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 24 Item 4: Cornmunity Advisory Cornmittee PROPOSED TIMELINE: TASK DATE Open Application Process CEA Board Approve Initial CAC Workplan & Meeting Schedule Applications due to CEA Board Secretary Applications distributed to CEA Board Member CEA Board Member Application Review & Evaluation CEA Board Meeting Review Recommendations & Approve Appointees First Meeting of CAC August 3, 2020 August 20, 2020 August 28, 2020 September 4, 2020 September 7 — October 2 October 15, 2020 November/December 2020 Timeline accommodates for CAC to Work on Customer Outreach & Marketing 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 25 Item 4: Community Advisory Cornmittee Timeline Board Discussion 7/23/20 CLEAN ENERGY ALLIANCE- FINAL 26 Item 5: Clean Energy Alliance Inclusive & Sustainable Workforce Policy Barbara Boswell, Interim Chief Executive Officer Gregory Stepanicich, General Counsel 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 27 Item 5: Clean Energy Alliance Inclusive & Sustainable Workforce Policy • Recommendation o Review, Provide Input & Approve CEA Inclusive & Sustainable Workforce Policy 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 28 Item 5: Clean Energy Alliance Inclusive & Sustainable Workforce Policy • Background O May 7, 2020 CEA Board provided input & direction to staff to bring an Inclusive & Sustainable Workforce Policy to Board for consideration. o July 16, 2020 Draft Policy presented to Board for Consideration. o Board requested the approval action to be considered at special meeting. 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 29 Item 5: Clean Energy Alliance Inclusive & Sustainable Workforce Policy • Two edits on current draft: o Page 2 - Updating language in the Non-Discrimination Pledge Section to require in its contracts with suppliers that the suppliers will not discriminate; o Page 3 - Deleting the specific licenses in the CEA Power Purchase Agreements with Third Parties Section 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 30 Item 5: Clean Energy Alliance Inclusive & Sustainable Workforce Policy Board Discussion 7/23/20 CLEAN ENERGY ALLIANCE - FINAL 31