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Home My WebLink About2021-01-21; Clean Energy Alliance JPA; ; Clean Energy Alliance Operational, Administrative and Regulatory Affairs Update111•1100- CLEAN ENERGY ALLIANCE Staff Report DATE: January 21, 2021 TO: Clean Energy Alliance Board of Directors FROM: Barbara Boswell, Interim Chief Executive Officer ITEM 6: Clean Energy Alliance Operational, Administrative and Regulatory Affairs Update RECOMMENDATION 1)Receive and File Operational and Administrative Update Report from Interim CEO. 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 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/June 2021. (Attachment A - Clean Energy Alliance Timeline of Implementation Action Items). CEA Launch Schedule San Diego Gas & Electric (SDG&E) has been working over the past several years on their Customer Information System replacement program, known as Envision. They had committed to, and were on track, for a January 4, 2021 go live, despite the challenges of working remote in the COVID-19 environment. With a January 2021 go live, SDG&E committed to supporting the CEA launch of May 2021. On Friday July 10, CEA staff, its regulatory attorney Ty Tosdal and data manager Calpine Energy Solutions participated in a call with San Diego Community Power and SDG&E regarding the recently approved California Public Utilities Commission (CPUC) Decision D. 20-06-003, which requires the Investor-Owned Utilities (IOU) to adopt rules and policy changes designed to reduce the number of residential disconnections, provide assistance with debt forgiveness, and offer extended payment plans. The program, known as Arrearage Management Payment program, is required to be implemented by April 2021. This timing has presented a challenge to SDG&E to keep its go live date of January 4, 2021, while also meeting the requirements of the decision. SDG&E submitted a letter to the CPUC requesting an extension to September 30, 2021, for implementing the new procedures and policies required by the decision. This request was denied by the CPUC, resulting in SDG&E postponing implementation of its January 21, 2021 Admin & Regulatory Update Page 2 of 6 Envision project to April 2021. The postponement of the Envision go live date impacts CEA's implementation. CEA and its consultants have worked diligently with SDG&E to develop a launch schedule that minimized impact to CEA while also minimizing the risk of incorrect bills being sent to customers. SDG&E and CEA have agreed to a two-phased schedule with accounts transitioning to CEA in May and June 2021, and the Board authorized the Interim Chief Executive Officer to enter into a letter agreement with SDG&E memorializing the phased approach. The May 2021 Phase 1 would include the transition of Solana Energy Alliance customers to CEA as well as customers in Carlsbad and Del Mar who do not have complex billing plans. Those customers who have been identified with complex billing plans would transition in June 2021. Staff continues to work with Ca'pine and SDG&E to fine tune the customer list for each phase. CEA Communications and Marketing Update Work continues on CEA's communications and marketing initiatives. The updated website went live on December 1, 2020. Next deliverables include Brand Standards (letterhead, email signatures, etc.); establishing social media presence; creation of communications tools (FAQs, information sheets); and development of customer notices. Community Advisory Committee The first meeting of the CEA Community Advisory Committee took place on December 3. Alternate Board Member Dwight Worden was ratified as CAC Chair, pursuant to Board identification that the Board Alternate appointment would serve as CAC Chair, and Dr. Don Mosier was elected Vice Chair. The CAC is very enthused and look forward to working on programs to support CEA's success. Risk Oversight Committee The Energy Risk Management Policy, adopted by the CEA Board November 19, 2020, directs establishment of the Risk Oversight Committee (ROC), selected by the Chief Executive Officer. The CEO has identified the following as members of the ROC: Chief Executive Officer, Chair Board Chair Chief Financial Officer General Counsel Pacific Energy Advisors, to serve as technical advisors The first meeting of the ROC is scheduled for February 4, 2021, and quarterly thereafter. Expansion of Clean Energy Alliance The Board will be reviewing and updating the Outreach Matrix at this meeting. There have been no contacts made since the last meeting. January 21, 2021 Admin & Regulatory Update Page 3 of 6 Discussions with Key Potential CEA Customers Staff has continued its discussions with San Diego County Water Agency (SDCWA) regarding Clean Energy Alliance and implications to SDCWA of its electric accounts within CEA territory becoming customers. SDCWA staff anticipates a SDCWA Board discussion regarding CCA at an upcoming Board meeting. CEA staff has also had discussions with Walmart regarding CEA and its products and services as compared to SDG&E. Resource Adequacy Compliance As a load serving entity serving customers in 2021, CEA has an obligation to procure Resource Adequacy (RA), based on quantities allocated by CPUC and California Independent System Operator (CAISO). RA procurements do not supply any energy to CEA or its customers, rather it commits the seller to be available to supply energy to the grid if called upon by the CAISO and reduce the possibility of outages. This process is key to ensuring grid reliability. CEA successfully procured all its RA requirements and is fully compliant with its RA obligation. Long-Term Renewable Procurement As a load serving entity, CEA will be required to procure 65% of its minimum state required renewable portfolio standards in contracts of 10-years or longer. To ensure compliance with this requirement, CEA's initial renewable energy solicitation is underway. The solicitation process, from beginning through final execution can be lengthy, particularly in light of the impacts of COVID-19 on the renewable development industry. The solicitation opened on July 1, 2020, with proposals due July 27, 2020. CEA's consultant, Pacific Energy Advisors, has identified a short list of projects and negotiations are proceeding. It is anticipated final contracts will be before the Board in first quarter 2021. Staff has also begun discussions with SDG&E regarding entering into bilateral agreements for the procurement of renewable energy. These discussions are on-going, and any proposed agreement will be brought to the CEA Board for approval. 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: February 18 Board Meeting •Investment Policy January 21, 2021 Admin & Regulatory Update Page 4 of 6 Contracts $50,000 - $100,000 entered into by Interim Chief Executive Officer VENDOR DESCRIPTION AMOUNT None REGULATORY UPDATE CEA's regulatory attorney, Ty Tosdal, will provide an update to the Board on the following regulatory activities: SDG&E 2021 ERRA Forecast Proceeding (A.20-04-014) Annual proceeding in which SDG&E sets its energy generation and Power Charge Indifference Adjustment rates for the coming year. SDG&E 2020 ERRA Trigger (A20.12.007) The 2020 ERRA Trigger application addresses an undercollection SDG&E has incurred in 2020. The application addresses how the undercollection will be addressed through rate increases in 2021. 2020 Renewable Portfolio Standards (RPS) Procurement Plans (R.18-07-003) CEA previously submitted its 2020 Renewable Portfolio Standards (RPS) Procurement Plan with the CPUC. The CPUC has ordered many CCAs, IOUs and Energy Service Providers (ESP) to submit additional information regarding its plans to meet the state's renewable energy goals. FISCAL IMPACT There is no fiscal impact by this action. ATTACHMENTS Attachment A - Clean Energy Alliance Timeline of Implementation Action Item Attachment B — Tosdal APC Regulatory Update Report January 21, 2021 Admin & Regulatory Update Page 5 of 6 Attachment A Board Actions/Activity Staff/Consultant Activity . Marketing/Customer Outreach January 21, 2021 Admin & Regulatory Update Page 6 of 6 Clean Energy Alliance Timeline of Action Items CCA Program Related liming Description Status 3rd Qtr '20 4th Qtr '20 1st Qtr '21 Apr-21 May-21 Jun-21 141-21 9/1/20 Marketing/Customer Outreach Plan Development & Kickoff Complete I I Marketing Strategic Plan Complete Logo Design Complete Website Refresh Complete 9/17/20 Bid Evaluation and Criteria Scoring System Complete 9/17/20 Award Scheduling Coordinator Services Complete 10/15 & 11/19 11/19/20 Introduce/Adopt Energy Risk Management Policy Complete 10/15/20 Records Retention Policy Complete System Testing with SDG&E In Progress 1/21/21 Credit Solution In Progress 1/21/21 (IA Default Products/programs/renewable energy policies In Progress 2/1/21 Create Customer Pre- and Post-Enrollment Notices t 1/21/21 Social Media Policy 1/21/21 Debt Issuance Policy 2/1121 Set up Call Center/Scripti ng/IVR Recordings 2/18/21 Rate Setting 2/18/21 Investment Policy Energy Supply Procurement - Short Term Renewable &Conventional 3/1/21 Customer Noticing 5/1/21 Launch - 2 phases May &June 2021 Key: CCA Launch Attachment B Clean Energy Alliance Board Update January 14, 2021 T SDAL Ty Tosdal Tosdal APC ENERGY & ENVIRONMENTAL LAW Overview •SDG&E 2021 ERRA Forecast (A. 20-04-014) •SDG&E's 2020 ERRA Trigger A. 20-12-007) •2020 RPS Procurement Plans (R. 18-07-003) •Percent Income Payment Plan (R. 18-07-005) SDG&E's 2021 ERRA Forecast Application •The Alternate Proposed Decision (APD) requiring SDG&E to incorporate departing load into sales forecast was adopted. •There will be no drastic reduction in SDG&E rates. •The System Average Percent Change (SAPC) allocation method adopted. SDG&E's advice letter to be issued before February 1, 2021, will provide additional details. SDG&E's 2020 ERRATrigger SDG&E has applied for a modest rate increase. •San Diego CCAs submitted a Joint Protest on January 5, 2021. •SDG&E has committed to applying the energy requirements approved in the ERRA Forecast proceeding. •San Diego CCAs Propose March 4, 2021, Commission Vote for implementation June 1. 2020 RPS Procurement Plans •CEA and other CCAs, ESPs and IOUs are ordered to provide additional details to multiple sections of the RPS Plans by February 15, 2021. •PEA is currently working on the amendments to CEA's RPS Procurement Plan narrative and RNS calculations. •SDG&E's request to hold RPS sales solicitations in 2021 is approved. RPS Progress to Target Comparison fignre 1:Aggregated lOttProgiess 0300.403034RPS Mr" 50000 4JIIU hut 100 11111 I CCAs Proven rowan., 60% RPS 4400 34000 3000 La 111111111 CIAalin scam Ds, pan me Er Ca t ..--. ed Source: CPUC Proposed Decision on 2020 RPS Plans, Filed December 11, 2020. Percentage of Income Payment Plan (PIPP) •The program aims to assist customers with the lowest income and provides a fixed, minimum bill based on income. •Party comments reflect wide disagreement regarding PIPP income eligibility and program parameters. •CalCCA supports PIPP as a 12-18 month pilot for IOUs only and PPP as cost recovery mechanism. •SDG&E opposes the PIPP program entirely, citing duplicative nature of CARE/FERA and other factors. Supporting Materials Supporting materials referenced in this presentation can be found at the following link: https://www.dropbox.com/sh/4sdi7dczafu3w27/AACCZGmnC00 9fLrXRxVzE59a?d1=0