Welcome! Community Choice Aggregation Expansion in California and - - PowerPoint PPT Presentation

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, Renewable Energy Manager Ross Markey, Renewable Energy Analyst

Our Presenters

June Brashares,

Study Lead Author, Energy Policy Analyst

Neal Reardon,

Regulatory Affairs Manager, Sonoma Clean Power

• Clean Power Exchange: Map, E-News,

Policy Page

• Symposium
• Webinars: 2nd Wednesdays at Noon
• White Papers & Reports
• New CPX Forum:

http://cleanpowerexchange.org/forums/

Our Work

http://cleanpowerexchange.org/cali fornia-community-choice/

California communities expected to begin Community Choice service

• ver 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”

.

11,302.345 6,433.486

• 2,000.000

4,000.000 6,000.000 8,000.000 10,000.000 12,000.000 2017 CCA DL in PG&E Territory PG&E'S 2017 ERRA CCA DL GWh

Projected CCA load compared to PG&E's ERRA forecast of CCA Departing Load

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

• f 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

Neal Reardon Regulatory Affairs Manager Sonoma Clean Power Authority

21

Clean Power Exchange Webinar: IOU & CCA Procurement August 3, 2017

Operating Community Choice Aggregators (CCAs)

CalCCA Members Customer Accounts Minimum RPS (2017) Uses Unbundled RECs? Annual Load Projected 2017 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 Authority 61,000 40% 0% 730* CalCCA Member Totals 1,243,000 48% (avg) 1% (avg) 13,773

*Represents a partial year due to mid-year launch

Building California Renewables

23

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

24

25

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.

26

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

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…

http://subscribecpuc.cpuc.ca.gov/ Subscribe to the PCIA Proceeding at: Rulemaking #: R1706026

CPX Forum:

http://cleanpowerexchange.org/forums/

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 Center for Climate Protection Cordel Stillman, Sonoma Clean Power

Woody Hastings

Renewable Energy Manager Center for Climate Protection

707-525-1665 ext. 117 woody@climateprotection.org

Th Thank you you for

• r joi
• ining

g us!