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Home My WebLink About2022-02-24; Clean Energy Alliance JPA; ; Clean Energy Alliance Operational, Administrative and Regulatory Affairs Update~ CLEAN ENERGY ALLIANCE Staff Report DATE: February 24, 2022 TO: FROM: Clean Energy Alliance Board of Directors Barbara Boswell, Chief Executive Officer ITEM3: Clean Energy Alliance Operational, Administrative and Regu latory Affairs Update RECOMMENDATION 1) Receive and File Operational and Administrative Update Report from Chief Executive Officer. 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 operational, administrative, and regulatory affairs activities. OPERATIONAL UPDATE Expansion of Clean Energy Alliance In connection with CEA's evaluation of the cities of Ocean side, Vista, and San Clemente (''The Cities") joining CEA with a potential 2024 service launch, CEA has received energy usage for those cities and is in the process of analyzing the data. The assessment reports related to the service expansion to these cities will be presented to the CEA Board at the April Board meeting. Should the results of the assessment report be favorable, and the CEA Board indicate a desire to expand into the cities, the following timeline is anticipated: ACTIVITY TIMING Assessment Report Results to CEA Board and April 2022 Oceanside, Vista, and San Clemente City Councils Resolution to Join CEA and 1st Reading of May 2022 Ordinance to Establish a CCA before the City Councils 2nd Reading of Ordinance M ay/June 2022 Resolution approving new cities joining CEA/Direct preparation of Implementation Plan Amendment Draft Implementation Plan Amendment to CEA Board File Implementation Plan Amendment Return to In-Person CEA Board Meetings July 2022 October 2022 December 2022 February 24, 2022 Admin & Regu latory Update Page 2 of6 The CEA Board has begun consideration of the return to in-person meetings and directed staff to reach out to the member agencies to determine capabilities related to hosting CEA Board meetings. Priorities regarding hosting CEA meetings include: • Geographic proximity to all member cities • Broadcast capabilities to allow for broadcasting on CEA's You Tube channel • Appropriate meeting space to hold public meetings pursuant to the Brown Act Initial discussions with staff have revea led: • City of San Marcos o Most central of all member agencies o Ability to broadcast through CEA's You Tube channel o Appropriate meeting space • City of Carlsbad o Northern most end of CEA territory o Unable to broadcast through CEA's You Tube channel • Would require broadcast through Carlsbad's channels o Appropriate meeting space • City of Del Mar o Southern most end of CEA territory o Unable to broadcast through CEA's You Tube channel o Appropriate meeting space Staff will be following up with the cities of Escondido and Solana Beach, however, based on initial discussions San Marcos currently best meets CEA's priorities for in-person meetings. CEA will continue to research the options and return to the March CEA Board meeting with a recommendation. Call Center Activity The chart below reflects ca ll activity to CEA's ca ll center through January 31, 2022: 1,lD0 1,000 800 600 400 200 0 Mar·2l Apr-21 Mav·21 calls to Call Center Jun-21 Jul-21 Aug-21 S<p,21 -Total C,lb -C&llsConnectedtoAgents February 24, 2022 Admin & Regulatory Update Page 3 of6 Oct·2l Nov-21 0tc·21 Jan·22 35 30 25 20 15 10 0 Mar•21 Apr-21 May-21 Jun-21 Call Center Avg Seconds to Answer Avg Call Duration Jul-21 Aug•2l S.i>-21 -Avg Seconds to Ar6wer -Avg (.a II Duration February 24, 2022 Admin & Regulatory Update Page 4 of 6 Oct·21 Nov-21 Oec-21 Jan-22 The following chart reflect s the monthly and cumulative opt-outs for CEA. 6,000 5,000 4,000 3,000 2,000 1,000 0 I Mar-21 Apr-21 May-21 -1,000 Opt-Out Stats I I Jur>21 Jul-21 Aug-21 Sep-21 -Monthly Opt-Olf. Stats -cumUative Opt-ol.ts February 24, 2022 Admin & Regulatory Update Page 5 of6 --Oct-21 Nov-21 I Jan-22 CEA realized a net increase in opt outs in January of 133 service accounts and overall participation rate of 92.53%. Enrollments in CEA's power supply products are: Clean Impact -50% Renewable 120 Clean Impact Plus -75% Carbon Free 59,581 Green Impact -100% Renewable 378 Resource Adequacy Compliance The Year-Ahead Resource Adequacy has begun for calendar year 2023, with the initial forecast due to be filed in April 2022. CEA is coordinating with San Di ego Gas & Electric (SDG&E} for its 2023 forecast related to accounting for Escondido and San Marcos customers transferring from SDG&E to CEA in 2023. Contracts $50,000 -$100,000 entered into by Chief Executive Officer I VENDOR None I DESCRIPTION REGULATORY UPDATE February 24, 2022 Admin & Regulatory Update Page 6 of6 I AMOUNT CEA's regulatory attorney, Ty Tosdal, will provide an update to the Board on current regulatory activities (Attachment A). FISCAL IMPACT There is no fiscal impact by this action. ATTACHMENTS Attachment A-Tosdal APC Regulatory Update Report Item 3 Attachment A Clean Energy Alliance Regulatory Update February 24, 2022 T n SDAL ENERGY & ENVIRONMENTAL LAW Overview • Financial Security Requirements (R. 21-03-011 ) • SDGE Advice Letter 3936-E Seeking Approval for RPS Transaction • RPS VAMO (R. 17-06-026) • Update on NEM 3.0 Proceeding (R. 20-08-020) • Financial Security Requirements • Financial Security Requirements (FSRs) are being addressed in the Provider of Last Resort (POLR) proceeding, R. 21-03-011 . • Existing rules require 6-month advance procurement costs, plus an administrative fee per customer, offset by anticipated revenues. • To meet current FSRs, CEA is required to maintain a letter of credit for $147,000. • Existing rules have been heavily criticized: o Outdated inputs o Improper offsets o Inadequate amount • Related, there is discussion about providing the CPUC with additional information about CCA financial performance, potentially through existing documentation. • SDG&E RPS Transaction • SDG&E submitted Advice Letter (AL) 3936-E on January 19, 2022, seeking approval for RPS transactions with SDCP and CEA. • Cal Advocates filed a protest and stated that the CEA ag reement did not appear to meet the 10-year long-term RPS requirement. • DA parties filed a protest and argued the transaction was premature because the RPS VAMO will be implemented in short order. • SDG&E filed a reply on February 15, 2022. • Next step is additional staff review. SDG&E {AL) 3936-E will ultimately require Commission approval via resolution. • RPSVAMO • April 2022: As part of the ERRA Meet & Confer Process, the IOUs will finalize the CCAs' potential VAMO shares based on vintaged, annual load forecasts. • May 2022: CCAs will inform IOUs of their interest in Voluntary Allocation shares and finalize their elections. Payment based on the 2023 RPS MPB will be due upon election. • June 2022: IOUs and CCAs include the proposed Voluntary Allocations in their 2022 RPS Plans. • December 2022: Commission expected to issue a decision on 2022 RPS Plans and address VAMO. • January 2023: IOUs file final RPS VAMO Plans to comply with Commission decision. • 21 Days After Final RPS Plans: IOUs commence Voluntary Allocations. • October 2023: Initial payments trued-up based on updated RPS MPB. • Update on NEM 3.0 Proceeding Administrative Law Judge circulated an email on February 3, 2022: • The proposed decision "will not appear on the Commission's voting meeting agenda until further notice." • Commission reassigned Rulemaking 20-08-020 to President Alice Reynolds, who "has requested additional time to analyze the record and consider revisions to the proposed decision based on party comments." • "Furthermore, the assigned Commissioner wants to ensure all five Commissioners participate in oral arguments. Accordingly, the oral argument hearing will be rescheduled at a later date." •