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HomeMy WebLinkAbout2021-03-25; Clean Energy Alliance JPA; ; Update on Clean Energy Alliance Member Agency Default Power Supply Selections and Net Energy Metering Customer EnrollmentsOW- CLEAN ENERGY ALLIANCE Staff Report DATE: March 25, 2021 TO: Clean Energy Alliance Board of Directors FROM: Barbara Boswell, Interim Chief Executive Officer ITEM 7: Update on Clean Energy Alliance Member Agency Default Power Supply Selections and Net Energy Metering Customer Enrollments RECOMMENDATION Receive Report on Clean Energy Alliance Member Agency Default Power Supply Selections and Net Energy Metering Customer Enrollments. BACKGROUND AND DISCUSSION At its special meeting March 4, 2021, the Clean Energy Alliance (CEA) Board approved power supply product options to be available for member agencies to select as their default power supply and for individual customers to select as options. The approved power supply options are: NAME CONTENT AVAILABLE AS DEFAULT AVAILABLE FOR INDIVIDUAL OPTION Clean Impact Minimum 50% Renewable Y Y Clean Impact Plus Minimum 50% Renewable/75% Carbon Free Y N Green Impact 100% Renewable Y Y Default power supply selections by the member agencies are: •Carlsbad — Clean Impact Plus •Del Mar—Clean Impact Plus •Solana Beach —Clean Impact Plus Customers will be defaulted into the default power supply selected by their city upon enrollment with CEA, unless the customer makes an alternative selection. The customer can make alternative selections either on the CEA website or by calling customer service at (833) 232-3110. March 25, 2021 Update Power Supply and Net Energy Metering Page 2 of 2 Net Energy Metering CEA staff has been working with San Diego Gas & Electric (5DG&E) staff to evaluate options related to enrolling Net Energy Metering (NEM) customers in CEA. Customers with self-generation systems such as rooftop solar are typically enrolled in the NEM program. The NEM program tracks credits and charges throughout a 12-month Relevant Period, with the Relevant Period beginning in the month the customer starts NEM service. At the end of the Relevant Period, credits and charges are trued-up, if there is a charge due the customer is billed the charge, and if there is a credit the account is zeroed out and a new Relevant Period begins. In addition to the monetary true-up, the customer's account is trued-up with regards to the kWh generation by the system as compared to the kWh energy used by the customer through the Relevant Period. If the system generated more energy on a kWh basis than the customer used, the customer is eligible to receive Net Surplus Compensation. When a NEM customer enrolls in CEA, the NEM account is trued-up, regardless of when the Relevant Period normally ends, and a new Relevant Period will be established which will begin in the month the customer enrolls in CEA. This mid-Relevant Period true-up may result in a customer owing a charge due to not having the benefit of the full 12-month Relevant Period. Staff and SIDG&E had been contemplating enrolling NEM customers throughout the year, based on the customer's normal Relevant Period end date. Upon further evaluation, it was discovered that customers that enroll starting in July 2021 would be assigned the 2021 Power Charge Indifference Adjustment (PCIA) vintage by SDG&E. The current rate for the 2021 PCIA vintage is $.04517/kWh, this is 20% higher than the 2020 PCIA Vintage for Carlsbad & Del Mar customers enrolling in May & June ($.03769/kWh) and 4% higher than the 2017 PCIA Vintage for Solana Beach customers transitioning from Solana Energy Alliance ($.04340/kWh). Due to the impact this higher PCIA rate will have on NEM customers, staff recommends enrolling NEM customers in May and June 2021, along with all other Carlsbad & Del Mar non-NEM customers. Current Solana Energy Alliance NEM customers will maintain their 2017 PCIA vintage and will enroll in May 2021. In order to ensure NEM customers are fully aware of the impact of enrollment in CEA, a letter will be sent to existing NEM customers in early April that fully explains the enrollment process and related true- up. Should the customer decide that a mid-Relevant Period is not to their advantage, information on how to opt-out of CEA enrollment will be provided. Call Center staff will also be available to answer any questions from NEM customers related to the true-up. FISCAL IMPACT There is no fiscal impact. ATTACHMENTS None