Introduction and Update
for Prospective
Business Customers
Wednesday, November 4, 2015
11:00 am - noon
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Webinar Objectives
• Provide an update on the Silicon Valley Community Choice Energy
Partnership, current development efforts and next steps
• Offer a primer on Community Choice Energy, and what it means
for commercial energy customers
• Engage prospective business customers and key commercial
stakeholders
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Community Choice Energy - Context
IOU
Investor-Owned
Utility
(e.g. PG&E)
CCE
Community Choice
Energy
(e.g. Marin Clean Energy)
Muni
Municipally-Owned
Utility
(e.g. CPAU/Palo Alto)
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Business Customers and Impact
64%
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Speaker Introductions
Melody Tovar, City of Sunnyvale
Regulatory Programs Division Manager, City of Sunnyvale
SVCCEP Project Team Lead
Shawn Marshall, LEAN U.S.
Founder and Executive Director
Local Energy Aggregation Network, U.S.
Don Bray, Joint Venture Silicon Valley
Executive Director, Energy Initiatives
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Today’s Agenda
11:00am
Introduction and Overview
Don Bray, Joint Venture Silicon Valley
11:05
Introduction to the Silicon Valley
Community Choice Energy Partnership
Melody Tovar
City of Sunnyvale
Regulatory Programs Division Manager
11:15
Primer: Community Choice Energy
• Regulatory history
• How does CCE work?
• Where has this been done, and with
what results?
• How is energy procured and priced?
• What are the costs and savings?
opportunities? risks?
Shawn Marshall
LEAN Energy U.S.
Executive Director
11:40
Summary of Questions Frequently Asked
by Commercial Energy Customers
Don Bray
11:45
Moderated Audience Q&A
Shawn Marshall, Melody Tovar, Don Bray
11:55
Next Steps and Key Resources
Melody Tovar, Don Bray
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What is Community Choice Energy?
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What is Motivating CCE?
• Communities adopting Climate Action Plans
for Greenhouse Gas Reduction
• Transportation and
Electricity
Consumption
are largest community
contributors of GHG
• Transforming Electricity
Sourcing is essential
to reaching goals
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Major companies in the area have
similar motivations:
1)
2015 National Top 100
Intel
2)
Microsoft
4)
Apple
5)
Google
12)
Cisco
18)
Equinix
23)
Lockheed
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100% of Energy
from
Renewables
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Introducing SVCCEP - Silicon Valley
Community Choice Energy Partnership
Sponsoring Agencies . . .
Mayor
Jim Griffith
Mayor
Rod Sinks
Mayor
John McAlister
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Supervisor
Joe Simitian
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SVCCEP Priority Goals
• Offer renewable energy supply options that exceed the
renewable content offered by IOU.
• Reduce GHG emissions to support local climate action
goals.
• Provide competitive, potentially lower, electricity rates
for all customers.
• Facilitate the use of clean technology, local clean
power, and other energy innovations.
• Create and maintain a local public agency that is well
managed and financially sustainable.
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Interest has Grown
Electricity Usage by Community
4 Million MWh Total
Sunnyvale
68%
Mountain View
Unincorporated Santa Clara
Cupertino
Campbell
Gilroy
Los Altos
32%
Los Altos Hills
Los Gatos
Monte Sereno
Morgan Hill
Saratoga
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SVCCEP Milestones and Timeline
We are Here
Phase 1
INITIAL STUDY
 ID potential agency
partners
 ID opportunities, costs,
and risks
 Investigate other CCEs
 Inform community and
gather feedback
 Framework for next steps
TECHNICAL FEASIBILITY
Phase 2
Phase 3
CCE PROGRAM
DEVELOPMENT
CCE LAUNCH
 ID partners & funding
 JPA Formation
 Staffing and Org setup
 Technical Study: load
and rate analysis,
economics, supply
options, environmental
outcomes
 Expand Outreach
 Energy and other Service
Contracts
 Community outreach &
input
 Energy Svcs Pricing and
Procurement
 Enabling Ordinance
 Implementation Plan to
CPUC
 Agmt with PG&E
 Customer notifications
and service
 Conservation &
Renewables
programming
 Bridge financing to
revenue
Fall 2015
Winter 2015
Summer 2016
Technical Study
Completed
Communities
Decide  JPA
Ramp-up Operations and
Communications
Spring 2016
Implementation
Plan to CPUC
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Winter 2017
Program Launch!
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Today’s Agenda
11:00am
Introduction and Overview
Don Bray, Joint Venture Silicon Valley
11:05
Introduction to the Silicon Valley
Community Choice Energy Partnership
Melody Tovar
City of Sunnyvale
Regulatory Programs Division Manager
11:15
Primer: Community Choice Energy
• Regulatory history
• How does CCE work?
• Where has this been done, and with
what results?
• How is energy procured and priced?
• What are the costs and savings?
opportunities? risks?
Shawn Marshall
LEAN Energy U.S.
Executive Director
11:40
Summary of Questions Frequently Asked
by Commercial Energy Customers
Don Bray
11:45
Moderated Audience Q&A
Shawn Marshall, Melody Tovar, Don Bray
11:55
Next Steps and Key Resources
Melody Tovar, Don Bray
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Community Choice Energy in the U.S.
Authorized by CA Assembly Bill 117 in 2002
CCEs in 7 States
• California
• Illinois
• Massachusetts
• New Jersey
• Ohio
• Rhode Island
• New York
Under
Consideration:
Utah, Delaware,
Minnesota
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History in California
• Authorized by AB 117 (Migden, 2001)
• Expanded by SB 790 (Leno, 2011)
 Also required CPUC to open Rulemaking to adopt a Code of
Conduct, associated rules, and enforcement procedures, to govern
the conduct of an electrical corporation relative to the CCAs
 D. 12-12-036
• Community Choice operating in:
 Marin County and neighboring jurisdictions
 Sonoma County
 City of Lancaster
• Now under study in numerous additional jurisdictions
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Expansion in CA
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State Law Elements of CCA Service
• Local governments participate by passing an ordinance and joining
a Joint Powers Agency (JPA)
• Utility (PG&E) continues to provide consolidated billing, customer
service, power line and grid maintenance
• CCA becomes default electric provider; Customers receive minimum
4 opt-out notices over 120 days, can return to PG&E service at any
time.
• New CCA agencies register with CPUC, submit Implementation Plan
• Service Agreement with PG&E codifies CCA/utility operating
relationship
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How is a CCE operated and governed?
• Proposed as a Joint Powers Agency of multiple municipal members
• Key Functions of the JPA:
o Power procurement/development
o Rate design and setting
o Legal/regulatory compliance
o Ancillary energy programs
o Customer engagement
• JPA Agreement specifies terms of municipal membership
• Governance proposed as one elected representative from each
member city/county, plus alternate
• The Board meets monthly in a public setting. The Board sets JPA
direction, approves procurement strategy and power contracts, sets
rates and provides organizational oversight
• Specifically qualified staff run daily operations
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How is CCE visible to customers?
SCP Generation
Charge
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What offerings are available to CCE
customers?
Launch Year
2010
Power Supply Options
“Light Green” - 50% Renewable
“Dark Green” - 100% Renewable
“Sol Shares” - 100% Local Solar
2014
“Clean Start” - 36% Renewable
“Evergreen” - 100% Renewable
2015
“Clear Choice” - 35% Renewable
“Smart Choice” - 100% Renewable
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Customer offerings are sourced to
meet specific goals.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Electric Power Generation Mix*
PG&E – Sonoma Clean Power Comparison
21
20
Unspecified
21
44
100
24
PG&E
Natural Gas
Large Hydro
8
27
Nuclear
Renewable
36
CleanStart
EverGreen
*The generation data represents 2014 and is provided in the “Annual Report to the California Energy Commission: Power Source Disclosure Program,” excluding voluntary unbundled renewable
energy credits. PG&E data is subject to an independent audit and verification that will not be completed until October 1, 2015. The figures above may not sum up to100 percent due to rounding.
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Goals include reducing carbon
emissions from electricity generation.
500
CO2 Emissions, lbs/MWh
Pounds per Megawatt-Hour
450
400
350
300
250
200
427
445
150
294
100
50
70
0
PG&E
Sonoma Clean Start Sonoma Evergreen
2013 PG&E / 2014 SCP Data
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CCE Generation Rate Comparison
(Per Kwh; As of May 2015)
Generation Rate
PG&E
MCE
Light Green
E-1 (residential)
$0.097
$0.082
$0.092
A-1 (small commercial)
$0.102
$0.082
$0.092
E-19S (large industrial)
$0.099
$0.081
$0.091
AG-1A (agricultural)
$0.103
$0.093
$0.103
PG&E
SCP
Clean Start
SCP
Evergreen
E-1 (residential)
$0.097
$0.071
$0.106
A-1 (small commercial)
$0.102
$0.076
$0.111
E-19S (large industrial)
$0.099
$0.077
$0.112
AG-1A (agricultural)
$0.103
$0.081
$0.116
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MCE Deep
Green
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Anticipated Rate Savings in the
Near Term
Illustrative Rate
Comparison
Sonoma Clean Power
2015 Commercial
Com-1/A-1, 1500 kWh
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Anticipated Rate Savings in the
Near Term
Illustrative Rate Comparison
Sonoma Clean Power
2015 Commercial
A-10, E-19 Examples
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CCE Investment in Local Energy
Development – Innovation and Opportunity
Solar on a Brownfield
Floatovoltaics
Energy Efficiency
Battery Storage
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The timing for CCE formation is good.
Market Conditions/Utility Rate Trends
•
Wholesale power and natural gas prices are at
historic lows.
•
Utilities are fully resourced through 2020 and thus
excess power is available.
•
Affordable financing available due to low interest
rates.
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CCE programs are demonstrating
sound fiscal performance.
Marin Clean Energy (MCE) and Sonoma Clean Power (SCP)
•Provide greener energy at competitive rates
•Provide enhanced energy programs
•Are fiscally sound
v
MCE (Draft FY15-16)
SCP (Draft FY15-16)
Total Revenue
$146M
$165M
Expenses
$141M
$149M
Cost of Energy
$129M
$130M
4%
3.5%
$4.5M
$16.9M
Cost of Administration
Net Increase in Reserves
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Risks exist but can be mitigated.
Risks related to CCE
•
Financial risk
•
Competitive and pricing risk
/opt-out rates
•
Market exposure
•
Regulatory risk
•
Political risk
Probability
of Event
Effect
on Business
Assessment Report analyzes these risks and
outlines potential risk-mitigation measures
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Summary – Business Value Proposition
• CCE adds additional choices and opportunity for
C&I customers
• CCEs established today should be able to compete
on costs for the foreseeable future
• CCEs provide cost-effective renewable energy and
reduction of Scope 2 GHG emissions
• CCE revenue can fund local private/public partnership
activity, e.g. Feed-In Tariffs, PEV Infrastructure, Demand
Response, Energy Conservation, Storage
• Great opportunity for local pilots and innovation
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Today’s Agenda
11:00am
Introduction and Overview
Don Bray, Joint Venture Silicon Valley
11:05
Introduction to the Silicon Valley
Community Choice Energy Partnership
Melody Tovar
City of Sunnyvale
Regulatory Programs Division Manager
11:15
Primer: Community Choice Energy
• Regulatory history
• How does CCE work?
• Where has this been done, and with
what results?
• How is energy procured and priced?
• What are the costs and savings?
opportunities? risks?
Shawn Marshall
LEAN Energy U.S. - Local Energy
Aggregation Network
Executive Director
11:40
Summary of Questions Frequently Asked
by Commercial Energy Customers
Don Bray
11:45
Moderated Audience Q&A
Shawn Marshall, Melody Tovar, Don Bray
11:55
Next Steps and Key Resources
Melody Tovar, Don Bray
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Some Business FAQs
• What energy options are available to commercial customers?
• Would service reliability be affected?
• How are Direct Access customers affected?
• What do commercial rate schedules look like?
• What elements of the utility bill are affected? Not affected?
 Demand Charges?
 Fees?
 NEM?
• How are rates set? When?
• What steps are required to become a customer of the CCE
entity?
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Today’s Agenda
11:00am
Introduction and Overview
Don Bray, Joint Venture Silicon Valley
11:05
Introduction to the Silicon Valley
Community Choice Energy Partnership
Melody Tovar
City of Sunnyvale
Regulatory Programs Division Manager
11:15
Primer: Community Choice Energy
• Regulatory history
• How does CCE work?
• Where has this been done, and with
what results?
• How is energy procured and priced?
• What are the costs and savings?
opportunities? risks?
Shawn Marshall
LEAN Energy U.S. - Local Energy
Aggregation Network
Executive Director
11:40
Summary of Questions Frequently Asked
by Commercial Energy Customers
Don Bray
11:45
Moderated Audience Q&A
Shawn Marshall, Melody Tovar, Don Bray
11:55
Next Steps and Key Resources
Melody Tovar, Don Bray
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Next Steps
Technical Study &
Program Development
Stakeholder
Engagement
Agency Agreement &
Preparation
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Technical Study Scenarios
1. Match PG&E GHG-free content and start at 35%
Renewable Portfolio Content
2. Exceed PG&E content, starting at 50% RP
escalating to 75% by 2030, and ensure that GHG
remains 20% below PG&E
3. Maximize GHG-free and RP content, while
achieving rate parity with PG&E
 Include 100% RP voluntary program in all scenarios
 Utilize Product Content Category 1, 2 split of 75%/25% in all
scenarios
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Decision Making
• 12 partners
• Council/Board action
- Adopt CCE Ordinance
- Resolution to join JPA;
approve final agreement
- Approve cost-sharing contribution
• Target – action by March 31, 2016
- Council preparatory info by December 9, 2015
- First JPA meeting in April 2016
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Community Engagement
• Community Meetings – 12 minimum
• Targeted Stakeholder Forum
 November 17th in Sunnyvale
• Business Engagement
 Website – e-mail updates, comments
 Business Forum Meeting – December
 Business Groups, Chambers
• Grows in next phase
• Customer Noticing 60 days before service
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www.SVCleanEnergy.org
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Thank you.
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