HomeMy WebLinkAbout2022-06-30; Clean Energy Alliance JPA; ; Consider Authorization of Execution of Agreement with San Diego Gas & Electric for Renewable Energy through the Voluntary Allocation Market Offer Process~
CLEAN ENERGY ALLIANCE
DATE:
TO:
FROM:
Staff Report
June 30, 2022
Clean Energy Alliance Board of Directors
Barbara Boswell, Chief Executive Officer
ITEM 10: Consider Authorization of Execution of Agreement with San Diego Gas & Electric for
Renewable Energy through the Voluntary Allocation Market Offer Process
RECOMMENDATION
Authorize the Board Chair and Chief Executive Officer to Execute an Agreement with San Diego Gas &
Electric for Renewable Energy through the Voluntary Allocation Market Offer Process and direct staff to
return to the Board for ratification of the final agreement.
BACKGROUND AND DISCUSSION
California Public Utilities Commission (CPUC) Decision 21-05-030 requires San Diego Gas & Electric
(SDG&E) to offer voluntary allocations of its Renewables Portfolio St andards resources to Community
Choice Aggregators and Energy Service Providers that are serving SDG&E's departed customers.
Voluntary Allocation deliveries of renewable energy are expected to begin January 1, 2023.
As a load serving entity (LSE), Clean Energy Alliance (CEA) is required to meet the CPU C's minimum
renewable energy standards for both short-term and long-term renewable energy procurements.
Participating in the Voluntary Allocation Market Offer (VAMO) process through SDG&E positions CEA to
meet its requirements since the facilities are already on line and delivering energy. In addition, the
resources allocated to CEA will be removed from the Power Charge Indifference Adjustment (PCIA)
portfolio and will mitigate t he impact of the PCIA charge to CEA's customers.
The Voluntary Allocation process must follow the schedule as determined in the CPUC decision, which is
outlined below.
VOLUNTARY ALLOCATION ACTIVITIES DUE DATES
Meet and Confer(s) Ongoing as needed
LSE not ifies SDG&E of its intent to take a
Voluntary Allocation No later than July 1, 2022
Contracting for Voluntary Allocation
commences July 1, 2022
LS E's notify SDG&E of Voluntary Allocation
Election percentage Jul y 15 -22, 2022
Deadline for LS Es to execute and return
Voluntary Allocation Agreement
June 30, 2022
Mid-Term Reliability
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July 29, 2022
As demonstrated in the schedule above, the process for entering into the agreement is quite
compressed. CEA's desired allocation quantities will be determined in coordination with CEA's portfolio
managers and the CPUC decision requires that the pricing will be set based on current market pricing.
CEA's actual allocation will be determined after all LSE's submit their elections and SDG&E determines
the quantities available for each LSE participating.
Staff recommends the Board authorize the Board Chair and Chief Executive Officer to execute the
agreement with SDG&E and return to the Board after the agreement is finalized for ratification.
FISCAL IMPACT
The anticipated costs related to t he Voluntary Allocation procurement have been factored into the
financial pro-forma.
ATTACHMENTS
None
Item 10: Agreement with SDG&E for
Renewable Energy
• Recommendation:
• Authorize Board Chair and Chief Executive Officer to Execute
Agreement with SDG&E for Renewable Energy through Voluntary
Allocation Process and return to Board for Ratification of
Agreement.
CLEAN
ENERGY
ALLIANCE
6/30/22 27
Item 10: Agreement with SDG&E for
Renewable Energy
• Background:
• CPUC Decision 21-05-030
• Requires SDG&E to offer voluntary allocations of its renewable energy
portfolio to CCAs
• Renewable deliveries to begin January 1, 2023
• Benefits to CEA
• SDG&E allocations are for projects currently online and generating power
• Assist CEA to meet Renewable Energy requirements
• Allocations from resources included in Power Charge Indifference
Adjustment portfolio -reduce contracts that contribute to PCIA Charge tQ
customers CLEAN
ENERGY
ALLIANCE
6/30/22 28
Item 10: Agreement with SDG&E for
Renewable Energy
6/30/22
Timeline pursuant to CPUC decision
VOLUNTARY ALLOCATION ACTIVITIES
Meet and Confer(s)
LSE notifies SDG&E of its intent to take a
Voluntary Allocation
Contracting for Voluntary Allocation
commences
LSE's notify SDG&E of Voluntary
Allocation Election ercenta e
Deadline for LSE's to execute and return
Voluntary Allocation Agreement
DUE DATES
Ongoing as needed
No later than July 1, 2022
July 1, 2022
July 15 -22, 2022
July 29, 2022 CLEAN
ENERGY
ALLIANCE
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