The URL can be used to link to this page

Home My WebLink About2020-12-17; Clean Energy Alliance JPA; ; Approve Energy Product Options, Energy Product and Program Naming, and Terms and Conditions of Service and ProgramsClean Energy Alliance JOINT POWERS AUTHORITY Staff Report DATE: December 17, 2020 TO: Clean Energy Alliance Board of Directors FROM: Barbara Boswell, Interim Chief Executive Officer ITEM 7: Approve Energy Product Options, Energy Product and Program Naming, and Terms and Conditions of Service and Programs RECOMMENDATION: 1) Approve energy product options to offer at launch, or alternatives as determined by the Clean Energy Alliance (CEA) Board: •50% Renewable Energy Product — Minimum Default Product Offering •100% Renewable Energy Product — Alternative Default Option for Member Agencies and Voluntary Opt-Up for customers at a rate premium •Minimum State Renewable Portfolio Standards Product — Voluntary Opt-Down for customers at a reduced rate. 2) Approve Product Names, or alternative as determined by CEA Board: • • Green Impact — 50% Renewable Energy Product •Clean Impact — 100% Renewable Energy Product •Local Impact — Minimum State Renewable Portfolio Standards Product (If approved above) •Personal Impact — Net Energy Metering Program 3) Approve CEA Terms and Conditions — General Service and Net Energy Metering BACKGROUND AND DISCUSSION: As part of establishing CEA's Community Choice Aggregation (CCA) Program, initial product and program offerings, product naming and terms and conditions of service and program offerings need to be developed. These actions begin to establish CEA's brand for developing marketing materials and baseline offerings for setting rates. Energy Product Offerings Section 6.5 of the CEA Joint Powers Agreement (JPA), Power Supply Requirements, states that CEA's base default product will be greater than or equal to 50% qualified renewable resources. It further states that the Board will establish optional product offerings with higher renewable and/or GHG-free content that member agencies may select from as a default for their community. A survey of CCA product offerings throughout the state found: •19 CCAs offer a voluntary 100% renewable energy opt-up product •2 CCAs offer a voluntary 50% renewable energy opt-up product (one of these is 100% carbon free) December 17, 2020 Products, Naming and Terms & Conditions Page 2 of 3 None of the CCAs surveyed offered a 75% renewable energy product and a 100% renewable energy product. Clean Power Alliance allows its member agencies to select a default energy product from their 36% renewable, 50% renewable and 100% renewable energy product offerings. Individual customers may elect to change their product option at any time (e.g., if their community default is 100% renewable a customer may opt down to 50% renewable or 36% renewable and are charged the rate based on the option selected). Based on current market conditions and on the results of the CCA survey, staff recommends that CEA offer the following energy products at launch: •50% renewable energy as the minimum default energy selection for CEA; •100% renewable energy as an option for member agencies to select as a default and for customers to voluntarily opt-up; •Minimum state required renewable energy (36% in 2021 increasing to 39% in 2022) for customers to voluntarily opt-down. Offering a product that customers may opt-down to will address cost concerns individual customers may have regarding the higher renewable content default offerings and may serve as an alternative to a customer opting out. Staff will develop rates for Board consideration in January that would be set to reflect the product offerings, with 100% renewable set at a premium to reflect the higher renewable content costs and the minimum state renewable standards offering at a reduced rate to reflect the lower renewable content costs. Product Names Part of developing an identity and brand for CEA is establishing names for its products and programs. The product name should communicate a message to customers about the product. Staff and CEA's marketing and communications team from Tripepi Smith evaluated naming options and felt it best to avoid using renewable content (such as 50 or 100) in the product names to avoid issues if the renewable content were to change. In brainstorming and talking through CEA's goals, a consistent theme that came up was the priority of the Board to make a difference in their communities, whether by reducing green-house gas emissions, bringing local jobs and supporting local businesses, in short, making an "Impact". From this concept the following names were created: •Green Impact — 50% Renewable Energy Product •Clean Impact — 100% Renewable Energy Product •Local Impact — Minimum State Renewable Portfolio Standards Product (If Board Adopts) •Personal Impact — Net Energy Metering Program Staff sees potential in growing the concept of making an "Impact" with naming of future products and programs. Product names will be reflected on the CEA website and all customer communications as part of the enrollment notification process. December 17, 2020 Products, Naming and Terms & Conditions Page 3 of 3 Terms and Conditions Program terms and conditions communicate to customers their rights and obligations related to taking service with CEA. Initial terms and conditions for Board consideration include: •CEA General Operating Terms and Conditions (Attachment A) •CEA Net Energy Metering Terms and Conditions (Attachment C) The general operating terms and conditions are based on best practices and recommendations of currently operating CCAs. They provide customers with information on billing, enrollment, discount programs (CARE/FERA, etc.), opting out and failure to pay. CEA's Net Energy Metering (NEM) Terms and Conditions reflect the operating procedures that will guide the NEM program and is applicable to all CEA customers with self-generation systems such as rooftop solar. Key provisions include: •Customers will receive credit for system generated energy based on the rate in effect when the energy is generated. •Customers will receive a charge for energy they use based on the rate in effect when the energy is used. •Credits earned will offset energy charges in each billing period. •If the credits are not sufficient to cover charges, the net charge will be reflected on the customer's bill. •If the customer has excess credits, after offsetting charges, the credits will roll into the next month to offset future charges. •At the end of the customers 12-month relevant period, an evaluation of total energy produced by the customer's system (in kWh) and total energy used by the customer (in kWh). •If the customer was a "net generator" the customer will be eligible for a Net Surplus Compensation payment, to be calculated at the Net Surplus Compensation Rate (as established on the CEA rate schedule) multiplied by the net excess kWh produced by the system. •CEA will issue checks for Net Surplus Compensation payments in excess of $100. •Net Surplus Compensation payments less than $100 will be credited to the customer's bill to offset future charges. •All NEM accounts will be reset to zero upon completion of the annual True-Up. CEA's NEM program is designed to mirror that of SDG&E's program, with the exception of the Net Surplus Compensation Rate, which will be set by the Board during its rate setting process and may be a different rate than that offered by SDG&E. FISCAL IMPACT None. ATTACHMENTS: Attachment A — Clean Energy Alliance General Terms and Conditions Attachment B — Clean Energy Alliance Net Energy Metering Terms and Conditions 41111110- CLEAN ENERGY ALLIANCE TERMS AND CONDITIONS OF SERVICE Clean Energy Alliance (CEA) offers its customers a cleaner energy product at competitive rates. CEA rates are subject to change and will be adopted at duly noticed public meetings of the CEA Board of Directors. Information on current rates can be found on the CEA website at TheCleanEnergyAlliance.org. As a customer of CEA, San Diego Gas & Electric (SDG&E) continues to be responsible for delivering power to homes or businesses and for providing other related services. SDG&E bills CEA customers for these services, and these charges are the same whether the customer buys electricity from CEA or SDG&E. SDG&E also charges CEA customers a Power Charge Indifference Adjustment (PCIA or Exit Fee) and a Franchise Fee Surcharge. These fees are calculated on the number of kilowatt hours used each month. The PCIA is intended to ensure that remaining SDG&E customers to do not pay for electricity that SDG&E purchased for customers that switch to CEA. The PCIA and Franchise Fee are charged and collected by SDG&E and are not a charge of CEA. BILLING: CEA customers continue to receive a single monthly bill from SDG&E. This bill includes all electric charges, including CEA's power generation charges and SDG&E's charges for Transmission and Distribution services they provide. ENROLLMENT: As the default electricity provider for the cities of Carlsbad, Del Mar and Solana Beach beginning May 2021, customers are automatically enrolled into CEA services unless the customer takes action to opt out. The opt out must be received at least 5 business days before the meter read date during the enrollment month. Once enrolled, customer have an additional 60-days to opt-out without being subject to special conditions. See Opt Out below for more information. 100% RENEWABLE ENERGY PRODUCT: CEA offers a 100% Renewable Energy Product that customers may be defaulted into (if their community elected 100% Renewable Energy Product) or may voluntarily enroll in. Customers enrolled in Clean Impact may opt down to another CEA energy product at any time by calling (###) ###-#### or visiting TheCleanEnergyAlliance.org. DISCOUNT PROGRAMS: Customers currently enrolled in the California Alternative Rates for Energy (CARE) program, the Family Electric Rate Assistance (FERA) program, Medical Baseline continue to receive the same benefits and discounts as a CEA customer. OPT OUT: Customers have the right to opt out without penalty at any time. Customers will not be charged any fees by CEA if they opt-out or cancel electric service altogether (for example moving out of the CEA area). However, customers deciding to return to SDG&E after the 60- day opt out period are subject to SDG&E's one-time account processing fee (currently $1.121). In addition, customers will be required to remain with SDG&E for a minimum of twelve months before the can return to CEA service. By opting out customers are also subject to SDG&E's then current rates and terms of conditions of service. For more information on SDG&E's rates and terms and conditions of service please visit SDGE.com. Customers are not charged any fees if they opt out within the first 60-days after automatic enrollment in CEA or if they cancel service altogether (for example moving out of the CEA area). Customers will be charged for any electricity used before the transfer of service back to SDG&E. Accounts will be transferred on the date the electric meter is read and cannot be transferred during the middle of a billing cycle. In order to ensure timely processing of an opt-out request, the request must be received at least 5 business days prior to the next meter read date. To opt out, please call CEA at (###) ###-#### or visit TheCleanEnergyAlliance.org. Have your electric bill handy to process the request. FAILURE TO PAY: CEA may transfer your account to SDG&E upon 30 calendar days written notice to you if you fail to pay any portion of the CEA charges on your bill. If your service is transferred, you may be subject to additional requirements by SDG&E. For more information please call CEA at (###) ###-#### or visit TheCleanEnergyAlliance.org. SDG&E 's one-time account processing fee is subject to change. Visit SDGE.com for current rates. CEA Terms & Conditions 2 Adopted December 2020 11111111110- CLEAN ENERGY ALLIANCE NET ENERGY METERING TERMS AND CONDITIONS OF SERVICE A.PURPOSE The Purpose of the Net Energy Metering (NEM) Program terms & conditions (T&C) is to provide a process for how Net Energy Metering (commonly referred to as rooftop solar) customers are enrolled with Clean Energy Alliance (CEA) and how the program is administered. B.APPLICABILITY Customers enrolled in San Diego Gas & Electric's (SDG&E) Net Energy Metering Program (SDG&E NEM) are automatically enrolled in CEA's NEM Program. The Program is applicable for all NEM customers who have Renewable Generation Facilities such as rooftop solar. The facility must be eligible under SDG&E's Schedule NEM — Net Energy Metering or similar tariff option(s) focused on NEM, which may be amended or replaced by SDG&E from time to time. Each customer's eligible Renewable Generating Facility must fall within the capacity limits described in SDG&E's Schedule NEM and must be located on the customer's owned, leased, or rented premises, must be interconnected and operated in parallel with SDG&E's transmission and distribution systems, and must be intended primarily to offset part or all of the customer's own electrical requirements. This rate schedule will be available to customers that provide SDG&E with a completed SDG&E NEM Application and comply with all SDG&E NEM requirements as described in SDG&E's Schedule NEM. This includes, but not limited to, customers served by NEM-V (Virtual Net Energy Metering), VNM-A (Virtual Net Energy Metering for Multifamily Affordable Housing), VNEM-SOMAH (Virtual Net Energy Metering - Solar on Multifamily Affordable Housing) and Multiple Tariff facilities as described by SDG&E's Schedule NEM. C.TERRITORY Applicable in the CEA service area. D.RATES All rates charged under this schedule will be in accordance with the customer's otherwise applicable CEA rate schedule (OAS). A customer served under this schedule is responsible for all charges from its OAS including monthly minimum charges, customer charges, meter charges, facilities charges, demand charges and surcharges, and all other charges owed to CEA or SDG&E. Charges for energy (kWh) supplied by CEA will be based on the net metered usage in accordance with this tariff. E.BILLING 1. For a customer with Non-Time of Use (IOU) Rates. If the customer is a "Net Consumer," having overall positive usage during a specific billing cycle, the customer will be billed in accordance with the customer's OAS. If the customer is a "Net Generator," having overall negative usage during a specific billing cycle, any net energy production shall be valued in consideration of the customer's OAS. The calculated value of any net energy production shall be credited to the customer according to the OAS. 2.For a customer with TOU Rates. If the customer is a Net Consumer during any discrete TOU period reflected within a specific billing cycle, the net kWh consumed during such TOU period shall be billed in accordance with applicable TOU period-specific rates / charges, as described in the customer's OAS. If the customer is a Net Generator during any discrete TOU period reflected within a specific billing cycle, any net energy production shall be valued in consideration of the customer's OAS. The calculated value of such net energy production shall be credited to the customer according to the OAS. 3.CEA True-Up & Cash-Out Processes. a.True-Up. At the end of each NEM customer's 12-month relevant period, CEA will determine whether or not each customer has produced net surplus energy, as measured in kWh, over the most recent 12 billing cycles, or the period of time extending from the customer's commencement of participation in CEA's NEM program through the end of their relevant period, whichever is shorter (the "True- Up Period"). If the customer has not produced net surplus NEM energy, as measured in kWh, during the True-Up Period, all NEM credits, if any, generated through participation in CEA's NEM program in excess of currently applicable CEA charges shall be set to zero and any remaining balance will be due and payable. However, if a customer has produced net surplus NEM energy, as measured in kWh, resulting in a credit balance in excess of currently applicable CEA charges, then CEA shall credit such customer a Net Surplus Compensation (NSC) amount equal to the CEA NSC Rate per kWh, as defined in the CEA Rate Schedule, multiplied by the quantity of net surplus NEM energy produced by the customer during the True-Up Period, consistent with CEA's Cash-Out practice. All NEM accounts will be reset to zero kWh upon True-up. b.Cash-Out. At the end of each customer's relevant period, any current customer with a NSC Payment equal to or greater than $100, as determined during the applicable True-Up process, will be sent a direct payment by check. NSC payments less than $100 will be rolled over into the next relevant period and used to offset future charges. c.Aggregated NEM. Pursuant to California Public Utilities Commission Section 2827(h)(4)(B), aggregated NEM customers are "permanently ineligible to receive net surplus electricity compensation." Therefore, any excess accrued credits over the course of a year under an aggregated NEM account are ineligible for CEA's Cash-Out as described in Section 5. All other NEM rules apply to aggregated NEM accounts. CEA NEM Terms & Conditions 2 Adopted December 2020 F.ACCOUNT CLOSURES Customers who close their electric account through SDG&E or move outside of the CEA service area prior to the end of their relevant period and have produced net surplus NEM energy, as measured in kWh, resulting in a credit balance in excess of currently applicable CEA charges, shall receive a direct payment equal to the rate per kWh, as defined in the CEA Rate Schedule, multiplied by the net surplus NEM energy. CEA reserves the right to work with customers on a case-by-case basis to transfer NEM credits. G.SDG&E NEM SERVICES Customers are subject to the conditions and billing procedures of SDG&E for their non- generation services, as described in SDG&E's applicable NEM tariffs and options addressing NEM service. Customers should be advised that while CEA may settle out balances for generation on a monthly basis, SDG&E will continue to assess charges for delivery, transmission and other services. Customers are encouraged to review SDG&E's most up-to- date NEM tariffs, which are available at www.sdge.com. H.RETURN TO SDG&E BUNDLED SERVICE Customers with NEM service may opt-out and return to SDG&E bundled service at any time, pursuant to SDG&E's Rule 27. CEA will perform a true-up of their account (as described above), at the time of return to SDG&E bundled service, and customers will be subject to SDG&E's then current rates, terms and conditions of service. For details, please visit www.sdge.com. CEA NEM Terms & Conditions 3 Adopted December 2020