Welcome! Community Choice Aggregation Expansion in California and its Relation to Investor-Owned Utility Procurement August 3, 2017
Overview/Housekeeping • This webinar is being recorded • Enter questions in control panel chat area at any time – Q&A will be in the final ~20 minutes • If you are having trouble hearing or seeing, we will try to resolve, but either way, you will receive the recording • Handouts: Report and Bios
Your Webinar Team Woody Hastings, Ross Markey, Renewable Renewable Energy Manager Energy Analyst
Our Presenters June Brashares, Neal Reardon, Regulatory Affairs Manager, Study Lead Author, Sonoma Clean Power Energy Policy Analyst
Our Work • Clean Power Exchange: Map, E-News, Policy Page • Symposium • Webinars: 2 nd Wednesdays at Noon • White Papers & Reports • New CPX Forum: http://cleanpowerexchange.org/forums/
http://cleanpowerexchange.org/cali fornia-community-choice/
California communities expected to begin Community Choice service over the next few years .
Projected Growth of Community Choice Energy (GWh)
PG&E’s projections to 2020 PG&E’s “Joint Proposal for the Orderly Replacement of Diablo Canyon Power Plant with Energy Efficiency and Renewables”
Projected CCA load compared to PG&E's ERRA forecast of CCA Departing Load 12,000.000 11,302.345 10,000.000 8,000.000 6,433.486 GWh 6,000.000 . 4,000.000 2,000.000 - 2017 CCA DL in PG&E Territory PG&E'S 2017 ERRA CCA DL
Recommendations Community Choice stakeholders should participate in the CPUC’s process for the Integrated Resources Plan and Long Term Procurement Plan (IRP-LTPP) to ensure that IOU procurement plans include correct CCA growth projections and load reductions.
Power Charge Indifference Adjustment (PCIA) “Exit Fee” • IOU’s total energy portfolio costs minus portfolio’s market value • The PCIA is based on forecasted figures, reset each year, and is not trued-up
PROBLEMS WITH THE PCIA • Market Price B is not a proper valuation • Shifts costs if forecasted amounts are different from what occurs • Volatility • Unfair cost increases • Complex • Lack of transparency -- IOUs’ energy contracts are confidential
Recommendations Support proposal for reviewing representatives of CCAs and ESPs to have access to confidential data
Recommendations Incentivize IOUs to reduce costs of procurement contracts
Recommendations An alternative to the PCIA that will provide certainty and put a time limit on the fee
Recommendations A CPUC proceeding should be initiated to reform the structure and nature of the PCIA / exit fees
Stay Informed Subscribe to the PCIA Proceeding at: http://subscribecpuc.cpuc.ca.gov/ Rulemaking #: R1706026
Thank you! Contact Info: june.brashares@gmail.com 415-425-3733
Clean Power Exchange Webinar: IOU & CCA Procurement August 3, 2017 Neal Reardon Regulatory Affairs Manager Sonoma Clean Power Authority 21
Operating Community Choice Aggregators (CCAs) Annual Load Minimum Uses Projected Customer RPS Unbundled 2017 CalCCA Members Accounts (2017) RECs? GWh MCE 255,000 55% 0 - 3% 2,743 Sonoma Clean Power 235,000 43% 0% 2,550 Lancaster Choice Energy 55,000 35% 8% 595 CleanPowerSF 76,000 40% 0% 520 Peninsula Clean Energy 290,000 50% 0% 3,800 Apple Valley 28,000 35% 8% 235* Silicon Valley Clean Energy 243,000 50% 0% 2600* Redwood Coast Energy 61,000 40% 0% 730* Authority CalCCA Member Totals 1,243,000 48% (avg) 1% (avg) 13,773 *Represents a partial year due to mid-year launch
Building California Renewables About $2 billion in construction to date Majority of spending on projects with project labor agreements Constructing renewables quickly Takes 3-5 years of operations to create a diverse long-term portfolio 23
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California’s Greenhouse Gas Goals CCAs have average GHG emissions that are 44% lower than PG&E and 61% lower than SCE. CCAs are governed by public boards. Most have adopted stronger GHG targets than the State. CCAs have a lower cost of capital than IOUs, and can build at a lower cost. CCAs are poised to take lead role in transportation electrification: Local transportation agencies should drive shift to electric vehicles. Priority maps + no profit motive to drive up ratepayer costs. 25
Customer Serving Programs Responsive to local needs • Low-income retrofits • Electric vehicle focus (incl. CARE customers) • Fuel switching Rapid development (3-12 months to deploy) Low cost to implement programs 26
PCIA: Volatile Increases Since Launch 27
Exit Fees “Decoupling” means that for-profit utilities cannot win or lose. • Shareholders are immune to competition. CPUC is currently allowing utilities to double-procure. Increases • ratepayer costs. Current “PCIA” only allows unavoidable costs to be passed on to • ratepayers. Needs enforcement. Current PCIA holds veil over underlying contract information that • contributes to CCA customer’s PCIA fees. This makes forecasting and protecting customers very difficult. CalCCA Petition to modify these provisions is under review at • CPUC
Future of Utilities CPUC is asking whether for-profit utilities should transition to wires companies. • Conflicts at SDG&E and PG&E over selling natural gas. These utilities cannot • promote “fuel shifting.” CCAs offer a pathway for ensuring improved transparency, public oversight and • public access to competitive suppliers. Resolving the issue of unmanaged exit fees is the key to realizing the full social • and environmental value of community choice. Next Steps: PCIA OIR issued, comments received 7/31. (R.17-06-026) • CPUC will now determine scope of this new rulemaking • Full CPUC proceeding, likely through 2019. Should resolve before 2021 RPS • compliance period.
Questions? Neal Reardon nreardon@sonomacleanpower.org 30
Your Questions Please!
The Conversation Continues… CPX Forum: http://cleanpowerexchange.org/forums/ Subscribe to the PCIA Proceeding at: http://subscribecpuc.cpuc.ca.gov/ Rulemaking #: R1706026
NEXT WEBINAR Wednesday, Sept. 20, Noon to 1pm PST Beyond Combustion: Electric Vehicles and Community Choice A Sonoma County Case Study Trends, Goals, and Recommendations Doron Amiran Cordel Stillman, Center for Climate Protection Sonoma Clean Power
Thank you Th you for or joi oining g us! Woody Hastings Renewable Energy Manager Center for Climate Protection 707-525-1665 ext. 117 woody@climateprotection.org
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