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CC 2022-02-22_06c CCCE Annual JPA Update_PP PresentationAnnual Member Agency Update City of Arroyo Grande February 22, 2022 1 How Does CCA Work? “A Partnership to support shared customers” Assembly Bill 117, passed in 2002, established CCAs. CCAs offer an opportunity for communities to join together to choose the source of their electricity. 3CE buys power for its collective ratepayers and it is delivered over existing transmission lines as a cleaner, competitive alternative to your existing utility. A city or county joins Central Coast Community Energy to gain more control over its electricity needs and provide economic and environmental benefits to the community. 3CE procures the energy, which is delivered via PG&E’s transmission and distribution lines to you, the customer. 3CE is one of 13 CCAs that collaborate with PG&E this way. By 2021, 50% of customers in the State of California will be served by CCAs. Revenue generated by 3CE stays local - and helps keep electricity rates lower for our customers, while also funding energy program. 2 WHO WE ARE? 3 CCCE GOVERNANCE Policy Board: Meets 4 Times Annually including Annual Meeting Operations Board: Meets 10 Times Annually including Annual Meeting Community Advisory Council: Meets 7 Times Annually including Annual Meeting *City representative currently serving in a shared seat. 4 CCCE ACCOMPLISHMENTS 3Cchoice – clean & renewable offering 3Cprime – 100% renewable offering 94% enrollment Contracts with Local Vendors Over $1,000,000 38 full time employees 2 offices – Monterey & San Luis Obispo Received an A rating with S&P Over $140 Million in Rate Stabilization Fund Service and Loans Paid Off 889 MWs of Renewables – solar, wind, geothermal 261 MWs of battery storage Pathway to 100% clean & renewable $50+ million – Customer benefits Over $14 million set aside for FY 21/22 Energy Programs 5 Photo Credit: 2020 Rutgers, The State University of New Jersey 6 FAST TRACKING NEW ENERGY DEVELOPMENT Cost of Service (COS) Rate Design These projects will serve about 61% of CCCE’s retail load when all are online, expected in 2025. Local Control 3CE Board takes charge of setting rates and decouples from IOU rate making which is not consistent with 3CE customer base Simplicity Reduce number of classes and customer confusion Fairness Each class of customers is responsible for the cost 3CE incurs to serve them and provides greater rate equity among all customers Predictability Setting rates based on a 3-year revenue requirement term allows for greater consistency and less rate changes Competitiveness Recovering cost to service customers allows for lowest rates while offering options and delivering on 3CE goals 7 CCCE Commitment to Renewable Procurement contracted for approximately $1 billion in long term solar plus storage contracts since 2018 shortlisted 7 local projects through its local renewables RFP Joined other CCAs to advance long duration storage RFP to support grid reliability through existing and new technologies issued an RFQ for up to 100MW of front of the meter battery storage, with the potential to island projects for increased resiliency We invite the City of Seaside to join this project and identify key sites 8 CCCE Historic Rates & Covid-19 Response In light of the Pandemic and what is happening in our communities. We felt our role was to create as much value for our customers we could through a rate reduction. Our board voted to cut 50% off all 3CE electric generation charges in May and June of 2020. We then reduced our rates by 2% from July 1st thru December 31st of this year. **At the start of this year, 3CE had $50 million in reserves. We accessed those reserves to provide this savings. Our customers received a cumulative bill reduction of approximately $24 million – from our actions, this puts resources back into the hands of our community. . (talk to slide res, commercial, ag $$) Most customers saved more money with the 50% discount than if we’d stayed at 7% savings the entire year. 9 Long-term rate adoption increases predictability and rate stability Customer choices and transparency improve with simplified customer classes New rates increase customer rate equity throughout customer segments New rate structure maintains competitive rates across all customer segments https://3cenergy.org/2022-energy-choices/ GOALS of 2022 CCCE Service Offerings To that end, we are creating a new CCCE generation rate that will no longer follow the PGE generation rates with the goals of providing predictable and stable rates over a 3-year period, simpler rates, fair rates across all rate classes, and competitiveness by aiming for CCCE rates that are a minimum of 1% lower than PG&E’s generation. 10 APPROVED approach to rate design Cost of Service (COS) Rate Design Estimate the total cost necessary to serve all 3CE customers Power procurement Energy Programs Rate stabilization fund Administrative costs Create simple, easily understood customer classes based on size and usage profile Allocate total cost across customer classes Adjust allocations so each class will save a minimum of 1% relative to PG&E Design rates for each customer class to recover costs allocated to that class Rates will go live effective March 1, 2022 for customers within PG&E’s service territory Local Control 3CE Board takes charge of setting rates and decouples from IOU rate making which is not consistent with 3CE customer base Simplicity Reduce number of classes and customer confusion Fairness Each class of customers is responsible for the cost 3CE incurs to serve them and provides greater rate equity among all customers Predictability Setting rates based on a 3-year revenue requirement term allows for greater consistency and less rate changes Competitiveness Recovering cost to service customers allows for lowest rates while offering options and delivering on 3CE goals 11 Overview: $1.3 million in FY 18/19 $5.4 million in FY 19/20 $6.2 million in FY 20/21 Estimated $14.1 million in FY 21/22 4% of operating revenue in FY 21/22 Electrification in building and transportation sectors could result in $3 billion of untapped revenue market wide CCCE Energy Programs 12 12 Planning and Implementation Funding for planning and implementation projects related to electrification Intended for member agencies to electrify their vehicle fleets, municipal properties, and the community infrastructure that serves households and businesses. Innovation Funding to deploy new and innovative electrification or other clean energy-related technology for municipal or community buildings and/or fleets. Intended to foster market transformation, demonstrate scalable and replicable solutions, and identify potential future CCCE energy program concepts.  Electrification and Innovation Grant Program 13 Locally Sited Front of the Meter Distributed Energy Storage Projects Benefits Rate Stability reduced energy cost & reduced RA cost Grid Stability local power supply, critical period imports reduced => fewer outages Grid services balance power flows Reduced GHGs evening dispatch of day-time “solar” electrons Local jobs building and maintaining facilities Potential “microgrid” islanding => resiliency Program Objectives Reduce grid stress during high grid stress periods Increase grid reliability Increase staff learning and capacity Reduce GHGs associated with conventional electricity generation Member Agency Participation -- Provide “no cost sites” 15-20 year term -- Potential critical facility resiliency -- Opportunity to submit sites 2xs per year 15 Member Agencies submitted 90 sites. 10 of these agencies have less than 50k population. 14 Medium and Heavy-Duty Vehicle Electrification Program Intended to support the electrification of Member Agency medium and heavy-duty fleet vehicles Potential applications include street sweepers, refuse trucks, dump trucks, and first response vehicles CCCE will reserve funds for qualifying projects and funds will be dispersed once purchases and/or projects are completed Intended to work in coordination with city/county purchasing schedules and policies Incentives likely to be tied to increased cost of electric models from standard internal combustion options Other programs Reach Codes Greenhouse Gas Inventory 15 September 30, 2021 COMING MID-NOVEMBER 2021 New and expanded Electrify Your Ride program will incentivize EV's, EV Chargers AND Electric Bikes with our largest energy program budget to date! 16 City of Arroyo Grande by The Numbers (96.74% Enrollment) 8,343 total enrolled customers 7,218 Residential 1,057 Commercial 14 Agricultural ENERGY PROGRAM FUNDS Electrify Your Ride $18.7k 17 Salinas & San Luis Obispo Provided lunch & PPE to almost 500 workers and counting FIELD PROMOTION 2021 CCCE is committed to expanding access to clean energy, and clean energy education within the communities that we serve. 2021 saw dedicated customer webinars, public forums and Facebook Live events in Spanish. CCCE, successfully restarted the Farmworker Outreach Program in partnership with local radio station La Tricolor Additionally, the Farmworker Outreach Program expanded to San Luis Obispo County as part of a new partnership with local radio station La Ley. The DAC Ad Hoc Committee has been formed to ensure that we 18 Customer Resources & Tools Phase 1 Creating resources to help customers get access to data and make informed rate decisions Customer Energy Portal Rate Comparison Tool for Cost of Service Phase 2 Harnessing customer data to integrate energy programs and opportunities for electrification - Currently in beta testing Will be available for residential customers in November 2021 Customers will be able access and apply for energy programs through the portal 19 Vendor Registry 20 A Unified Central Coast CCA Key Updates: Adopted Cost of Service rate structure to achieve agency goals Working with CCCE member agencies on regulatory and legislative matters that ensure customer fairness and equal access to resources Pathway to achieve 100% clean and renewable energy by 2030 Leveraging Community Advisory Council for outreach and non-voting seat participation on Operations & Policy Boards Engaging with the community around development of future programs Enrollment of over 140k customers in 2021 & 2022 across 12 communities 21 Stay Connected with CCCE Follow us online, join our newsletter and board agenda notification list, and check our extensive FAQ section on the website. www.3Cenergy.org info@3CE.org 1.888.909.6227 @3CEnergy @3CEnergy @3CEnergyEnEspanol 22