[PPT] - VCE Community Advisory Committee Meeting October 22, 2020 Via PowerPoint Presentation

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VCE Community Advisory Committee Meeting – October 22, 2020 Via Teleconference Item 9 – Strategic Plan – Next Steps

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Public Comments

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To Provide Public Comment on any agenda item please:

➢ E-mail 300 words or less to: meetings@valleycleanenergy.org OR Join the Public Comment Queue by ➢ “Raising Hand” on Zoom Meeting OR ➢ Press *9 if joining by phone

Emailed comments received before the item has concluded will be read into the record. Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.

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It Item 9 - Overvie iew

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Strategic Plan Finalized
Edits from October Board Meeting
New Section on Timing, Measurement & Updates
Next Steps in Planning Process

Purpose: Share Strategic Plan information and status with the CAC

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It Item 9 - Strategic ic Pla lan Fin inali lized

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Changes since September CAC Meeting:

Added Objective 3.7 about emerging and historically marginalized

communities

Added Objective 6.1 about developing a roadmap towards

formation of a local Publicly Owned Utility (POU)

Added the “Timing, Measurement & Updates” section to the Plan
Minor grammatical corrections

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It Item 9 - Key y Edit its from October Board Meeting

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Two new objectives were added to the Plan: Objective 3.7: Integrate and address the concerns and priorities of emerging and historically marginalized communities in the design and implementation of VCE's services and programs. Objective 6.1: Develop a roadmap to evaluate and guide future steps toward formation of a local Publicly Owned Utility (POU).

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It Item 9 - Tim imin ing, g, Measurement & Updates

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Highlights of new section on Timing, Measurement & Updates:

Cadence for staff review and updating of the Plan (at least

annually)

Directions for staff to implement a timeline and reporting

format

Reporting cadence (quarterly to VCE management, annually

to the Board and CAC)

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It Item 9 - Next xt Steps

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Next Steps in the Planning Process:

Share final Plan document with the CAC and Board
Staff to develop and share a detailed timeline and action list

to the Board and CAC

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VCE Community Advisory Committee Meeting – October 22, 2020 Via Teleconference Item 10 – Power Procurement Quarterly Update

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Public Comments

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To Provide Public Comment on any agenda item please:

➢ E-mail 300 words or less to: meetings@valleycleanenergy.org OR Join the Public Comment Queue by ➢ “Raising Hand” on Zoom Meeting OR ➢ Press *9 if joining by phone

Emailed comments received before the item has concluded will be read into the record. Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.

SLIDE 10

Item 10 - Power Procurement Quarterly Update – 2020 Targets vs. Forecast

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Renewable procurement target included 42% for Standard Green load plus a margin for

the 100% renewable UltraGreen load

33% large hydro procurement target to meet 75% carbon-free portfolio
All percentages are based on Retail Load
Load has been tracking below original forecast
Currently VCE 2020 power content is forecasted to exceed original targets for both

renewable and carbon free

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Item 10 - Power Procurement Quarterly Update – Year to Date Snapshot

11 Renewable Technology Breakdown Solar 41% Biomass 5% Natural Gas (CEC Renewable) 0.3% Small Hydro 3% Wind 34% RPS (TBD) 16%

Contracts delivery timing drives year

to date power content

Technology has been reported for

84% of RPS deliveries to date

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VCE Community Advisory Committee Meeting – October 22, 2020 Via Teleconference Item 11 – Dividend Program Update

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Public Comments

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To Provide Public Comment on any agenda item please:

➢ E-mail 300 words or less to: meetings@valleycleanenergy.org OR Join the Public Comment Queue by ➢ “Raising Hand” on Zoom Meeting OR ➢ Press *9 if joining by phone

Emailed comments received before the item has concluded will be read into the record. Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.

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It Item 11 - Overview

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Overview of Dividend Program
Dividend Program Guidelines
Board Options
Considerations & Next Steps

Purpose: Share Dividend Program information and status with the CAC

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It Item 11 - Overview of Div ivid idend Program

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Highlights of the Dividend Program:

Adopted by the Board in June 2019 and effective July 1, 2019
Guidance for allocation of VCE’s revenue above minimum

Net Margin amongst:

Cash Reserves
Customer Dividends
Local Program Reserve
Consideration of cash reserves
Following the completion of each audited fiscal year, the

Board will decide on how to allocate revenue above minimum Net Margin

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It Item 11 - Div ivid idend Program Guid idelin ines

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Guidelines of the Dividend Program:

VCE to match PG&E’s generation rates (less PCIA)
Before any dividends are paid:
Consideration of cash reserves
VCE must have > 5% Net Margin (less debt payments)
The enrollment process for the legacy NEM accounts must

have begun

For fiscal year ended June 30, 2020, these criteria have been met.

Note: Cash reserves for fiscal years 21/22 and 22/23 are forecast to drop below reserve thresholds

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It Item 11 - Div ivid idend Program Guid idelin ines

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Per program guidelines:

Net Margin up to 5% allocated as follows:
At least 5% (of the 5%) goes to Local Programs Reserve (LPR)
Up to 95% to Cash Reserves
Net Margin greater than 5% allocated as follows:
At least 50% to Cash Reserves
Remaining allocated among customer Dividends and LPR

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It Item 11 - Board Optio ions

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FY2020 produced Net Margin (less debt payments) of $6.3M, which is 11.4%. Based on Dividend Program guidelines, the ranges are:

Local Programs Reserve: at least $140,000
Customer Dividends: $0 to $1.8M
The balance goes to Cash Reserves

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It Item 11 - Consid iderations & Next xt St Steps

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Projected Days Cash on Hand (due primarily to projected PCIA and RA cost increases):

June 30, 2020: 103 days
June 30, 2021: 72 days
June 30, 2020: 17 days

Note: current cash reserve goal 90 days (typical 120 to 180 cash reserve for investment grade credit rating) Next Steps:

Staff will present detailed options to the Board at the

VCE Community Advisory Committee Meeting – October 22, 2020 Via Teleconference Item 9 – Strategic Plan – Next Steps

Public Comments

To Provide Public Comment on any agenda item please:

➢ E-mail 300 words or less to: meetings@valleycleanenergy.org OR Join the Public Comment Queue by ➢ “Raising Hand” on Zoom Meeting OR ➢ Press *9 if joining by phone

Emailed comments received before the item has concluded will be read into the record. Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.

It Item 9 - Overvie iew

Purpose: Share Strategic Plan information and status with the CAC

It Item 9 - Strategic ic Pla lan Fin inali lized

Changes since September CAC Meeting:

communities

formation of a local Publicly Owned Utility (POU)

It Item 9 - Key y Edit its from October Board Meeting

It Item 9 - Tim imin ing, g, Measurement & Updates

Highlights of new section on Timing, Measurement & Updates:

annually)

format

to the Board and CAC)

It Item 9 - Next xt Steps

Next Steps in the Planning Process:

to the Board and CAC

VCE Community Advisory Committee Meeting – October 22, 2020 Via Teleconference Item 10 – Power Procurement Quarterly Update

Public Comments

To Provide Public Comment on any agenda item please:

➢ E-mail 300 words or less to: meetings@valleycleanenergy.org OR Join the Public Comment Queue by ➢ “Raising Hand” on Zoom Meeting OR ➢ Press *9 if joining by phone

Emailed comments received before the item has concluded will be read into the record. Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.

Item 10 - Power Procurement Quarterly Update – 2020 Targets vs. Forecast

Item 10 - Power Procurement Quarterly Update – Year to Date Snapshot

VCE Community Advisory Committee Meeting – October 22, 2020 Via Teleconference Item 11 – Dividend Program Update

Public Comments

To Provide Public Comment on any agenda item please:

➢ E-mail 300 words or less to: meetings@valleycleanenergy.org OR Join the Public Comment Queue by ➢ “Raising Hand” on Zoom Meeting OR ➢ Press *9 if joining by phone

Emailed comments received before the item has concluded will be read into the record. Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.

It Item 11 - Overview

Purpose: Share Dividend Program information and status with the CAC

It Item 11 - Overview of Div ivid idend Program

Highlights of the Dividend Program:

Net Margin amongst:

Board will decide on how to allocate revenue above minimum Net Margin

It Item 11 - Div ivid idend Program Guid idelin ines

Guidelines of the Dividend Program:

have begun

For fiscal year ended June 30, 2020, these criteria have been met.

Note: Cash reserves for fiscal years 21/22 and 22/23 are forecast to drop below reserve thresholds

It Item 11 - Div ivid idend Program Guid idelin ines

Per program guidelines:

It Item 11 - Board Optio ions

FY2020 produced Net Margin (less debt payments) of $6.3M, which is 11.4%. Based on Dividend Program guidelines, the ranges are:

It Item 11 - Consid iderations & Next xt St Steps

Projected Days Cash on Hand (due primarily to projected PCIA and RA cost increases):

Note: current cash reserve goal 90 days (typical 120 to 180 cash reserve for investment grade credit rating) Next Steps:

November meeting and seek a decision on allocation of Net Margin