Spring 2019 Request for Proposals Item 6 PRESENTATION Goals - - PowerPoint PPT Presentation

Clean Energy Procurement Update:

Execute a 15-Year Power Purchase Agreement with Rabbitbrush Solar, LLC for Renewable Solar PV Supply (PCC1) and Energy Storage (Action) Monica Padilla, Director of Power Resources April 8, 2020

Item 6 PRESENTATION

SILICON VALLEY

CLEAN ENERGY

Spring 2019 Request for Proposals

2

Issued Joint RFP

Shortlist & Exclusivity Agreements

Evaluate, Scoring, Rank & Analyze

Negotiation

• f PPAs –

Terms & Conditions

April 2019 May - July 2019 July – August 2019 September 2019 - now

• Goals & Requirements
• RPS Eligible Resources
• Contract for Minimum of 10% of SVCE’s needs – 400 GWh/year
• Meet Long-term RPS procurement mandate for CP #4 26%
• Diversify technology, location and suppliers
• Contract start date no later than January 1, 2023
• Jan 2020: Approved Ormat Geothermal
• Mar 2020: Approved Coso Geothermal
• April 2020: Seek Approval of Rabbitbrush

Solar + Storage

• Negotiating: 3 new Solar with Storage

Item 6 PRESENTATION

SILICON VALLEY

CLEAN ENERGY

3

RFP Implementation Update

Project/ Technology ~ % of load Term (years) Status

1 Ormat Geothermal 1.4% 10 Executed 2 Coso Geothermal 9.6% 15 Executed 3 Rabbitbrush Solar + Storage 3.0% 15 Pending Approval 4 Solar+Storage 6.3% 20 Under negotiation 5 Solar+Storage 3.9% 20 Under negotiation 6 Solar+Storage 1.1% 15 Under negotiation 25%

Item 6 PRESENTATION

SILICON VALLEY

CLEAN ENERGY

Rabbitbrush Contract

1 Product New Solar plus Battery Storage Bucket 1 (PCC1) Renewable Energy 2 Delivery Term

15 years June 2022 through June 2037

3 Location Kern County, CA 4 Average Annual Contract Capacity 40 MW Solar Photovoltaic (PV) 8 MW Battery (2.5-hour discharge duration) 5 Percentage of Retail Load Served 3% 6 Contract Price Structure Fixed price ($/MWh) for PV plus fixed battery capacity payment ($ per kW-month). No escalator.

Total amount not-to-exceed $64,323,500.

Item 6 PRESENTATION

Compliance with State Mandate

Compliance Period → 2021-2024

2025-2027 2028-2030

1. State Mandated

RPS per Compliance Period - % of Retail Sales 40% 50% 57%

2. State Mandated

% of Mandated RPS (Row #1) to be Contracted Under RPS Long-term Contracts 65% 65% 65%

3. State Mandated Retail Sales % with Long-term Contracts (Row 2 * Row 1)

26% 33% 37%

4. SVCE Compliance with (Row #3): CURRENT 29% 33% 31% 5. SVCE Compliance with (Row #3): PROPOSED

31% 36% 34%

Item 6 PRESENTATION

SILICON VALLEY

CLEAN ENERGY

6

2019 RFP Implementation Overall Annual & Nominal Cost

Project/ Technology ~ % of load Lifetime Nominal contract cost (M$) Average Annual Cost (M$) Nominal cost as %

• f power supply

expenses Expected Board date

1 Ormat Geothermal 1.4% $43 $4 2% Feb-20 2 Coso Geothermal 9.6% $331 $22 9% Mar-20 3 Rabbitbrush Solar + Storage 3.0% $64 $4 2% Apr-20 4 Solar+Storage 6.3% $180 $9 4% Jun-20 5 Solar+Storage 3.9% $82 $4 2% Jun-20 6 Solar+Storage 1.1% $32 $2 1% Jun-20 25% $730 $46 19%

Item 6 PRESENTATION

SILICON VALLEY

CLEAN ENERGY

Request

Authorize the Chief Executive Officer (CEO) to Execute Power Purchase Agreement (PPA) with Rabbitbrush Solar, LLC (“Rabbitbrush”) in substantial form and any necessary ancillary agreements and documents with the following key terms:

• 40 MW of Solar photovoltaic (PV) supply with 8 MW of energy

storage qualifying as Portfolio Category Content One (PCC1) renewable resource;

• 15-Year term power delivery from June 30, 2022 to June 29, 2037;

and

• Total amount not-to-exceed $64,323,500.

Item 6 PRESENTATION

SILICON VALLEY

CLEAN ENERGY

Questions?

Item 6 PRESENTATION

i

SILICON

V A L L E Y

CLEAN ENERGY

i

V'

I