Valley Clean Energy Board Meeting February 8, 2018 Davis Community Chambers 1
Consent Agenda Item Recommendation Approval of Minutes from January 18, 2018 Receive, review and approve the attached draft minutes from January 18, Board Meeting 2018 Board Meeting Delegation of Authority for Certain Adopt a resolution delegating certain authority to VCEA General Manager Regulatory and Legislative Matters and his designee(s) to take positions and action on regulatory and legislative items impacting VCEA. Approval of Regulatory and Legislative Adopt a resolution approving a Legislative/Regulatory Review and Action Review and Action Policy Policy. Approval of Organization Audit Schedule Approve VCEA Treasurer to request alternative audit cycle of a two year audit to the Board of Supervisors for the period of July 1, 2016 to June 30, 2018. Long Range Calendar Receive, review and approve the attached long range calendar.
It Item 9 – Approve Resolu lution Adopting Net Energy Metering (N (NEM) Polic licy (A (Acti tion) Customers on NEM Class # % Surplus Generators Residential 5,133 – Total 15% • 253 on Low Income or Medical Rate • 3,551 on Flat Rates • 1,534 on TOU Rates Small Commercial 157 26% Medium Commercial 12 8% Large Commercial 5 60% Agricultural 48 48% Total 5,306 18% 3
A Sample NEM True-Up Up kWh Price Bill Off-Peak Generation Usage Generation Net Peak Price Usage Generation Credit Net Price Adder January 682 218 464 $ 0.06458 $ 0.05256 $ 0.01 $ 35.85 $ (14.08) $ (2.18) $ 19.59 February 567 445 122 $ 0.06458 $ 0.05256 $ 0.01 $ 29.80 $ (28.74) $ (4.45) $ (3.39) March 566 537 29 $ 0.06458 $ 0.05256 $ 0.01 $ 29.75 $ (34.68) $ (5.37) $ (10.30) April 460 761 (301) $ 0.06458 $ 0.05256 $ 0.01 $ 24.18 $ (49.15) $ (7.61) $ (32.58) May 472 673 (201) $ 0.19113 $ 0.04031 $ 0.01 $ 19.03 $ (128.63) $ (6.73) $ (116.33) June 570 494 76 $ 0.19113 $ 0.04031 $ 0.01 $ 22.98 $ (94.42) $ (4.94) $ (76.38) July 672 516 156 $ 0.19113 $ 0.04031 $ 0.01 $ 27.09 $ (98.62) $ (5.16) $ (76.69) August 582 491 91 $ 0.19113 $ 0.04031 $ 0.01 $ 23.46 $ (93.84) $ (4.91) $ (75.29) September 630 480 150 $ 0.19113 $ 0.04031 $ 0.01 $ 25.40 $ (91.74) $ (4.80) $ (71.15) October 628 414 214 $ 0.19113 $ 0.04031 $ 0.01 $ 25.31 $ (79.13) $ (4.14) $ (57.95) November 638 298 340 $ 0.06458 $ 0.05256 $ 0.01 $ 33.53 $ (19.24) $ (2.98) $ 11.31 December 872 242 630 $ 0.06458 $ 0.05256 $ 0.01 $ 45.83 $ (15.63) $ (2.42) $ 27.78 Net Usage 1,770 Annual $ (461.39) Current PG&E policy would not pay out, since there was no net generation Several CCAs would pay out the $461 accumulated credits 4
CCA NEM Polic icy Comparison CCA Excess Gen - Excess Generation - True-Up Cash Out Limit Monthly Annual Peninsula Clean Energy Retail plus $0.01 Accumulated Credits April >$100 can elect cash out Retail plus deep green Marin Clean Energy Accumulated Credits April >$100 can elect cash out (currently $0.01) >$100 can elect cash out Sonoma Clean Power Retail plus $0.01 Accumulated Credits May $5,000 cap on payout Silicon Valley Clean Retail >$100 can elect cash out Accumulated Credits April GreenPrime if enrolled $5,000 cap on payout Energy Accumulated Credits None – Always cashed Lancaster Choice Energy Retail Credit not applied if annual net October out generation is less than zero. $0.0693 – average retail rate Clean Power SF Retail $0.0893 – average SuperGreen April None rate PG&E Wholesale, plus adder if given Annual based Retail None RECs on enrollment 5
Considerations for NEM Policy • Not harming existing NEM customers • Providing continued incentive for rooftop solar • Ensuring customer understanding of program • Managing impact to agency budget and overall power portfolio • Alignment with other NEM programs 6
Administrativ ive Poli licy Decis isions Recommendation Rationale Initial enrollment Minimize cash-flow impacts to customers. monthly True-up in April Minimize cash movement between CCAs and customers. Reduce administrative burden – cost and chance for errors. Cash out only customers Minimize customers receiving unexpected checks. with more than $100 in Minimize customer interactions required. credits who elect to be cashed out Settle monthly Eliminate year-end sticker shock. Minimize bill confusion. 7
NEM Options 1. Economic – Compensate monthly at retail – Settle annually at wholesale plus $0.005 2. Incentivize Solar to Meet Load – Compensate monthly at retail plus $0.01 – Settle annually at credit value, up to $2,500, and wholesale thereafter • If credit >$2,500, settle at $2,500 or wholesale plus adder, whichever is more. 3. Incentivize Solar, Including Surplus Generation – Compensate monthly at retail plus $0.01 – Settle annually at credit value, no limit
CAC Dis iscussion • Desire to signal that CCAs support NEM – want NEM to be a part of the solution • Concern about spending large amounts on existing customers, as they have already made their investment based on existing rates • Concern about incentivizing through rates vs. through incentives – rates can be difficult to adjust, and VCE may want to incentivize different things in the future. • Requested option that is more favorable to customers than PG&E, but does not primarily incentivize through rates.
Additional Options 1. Economic – Compensate monthly at retail – Settle annually at wholesale plus $0.005 2. Incentivize Solar to Meet Load – Compensate monthly at retail plus $0.01 – Settle annually at credit value, up to $2,500, and wholesale thereafter • If credit >$2,500, settle at $2,500 or wholesale plus adder, whichever is more. 3. Incentivize Solar, Including Surplus Generation – Compensate monthly at retail plus $0.01 – Settle annually at credit value, no limit 4. Economic Plus for existing NEM, Incentives for New NEM – Compensate monthly at retail plus $0.005 – Settle annually at wholesale plus $0.005 – Provide targeted incentives for new NEM installations 5. Economic Plus for existing NEM, Incentives for New NEM – Compensate monthly at retail plus $0.01 – Settle annually at wholesale plus $0.01 – Provide targeted incentives for new NEM installations 10
NEM Option Comparison Consideration 1 2 3 4 5 Notes Not harming existing NEM All options are more beneficial to NEM customers customers than existing policy Some options provide greater incentives for Providing continued over-generation, while others incentivize more incentive for rooftop solar evenly. Perceived complexity of the system may vary for Ensuring customer new customers vs. those coming from PG&E NEM understanding of program policy. Managing impact to agency budget and overall power Options 1, 4, and 5. portfolio Option 1 is significantly less incentive than other Alignment with other NEM CCAs. Option 2 treats net surplus differently than programs other CCAs. Options 4 and 5 adopt parts of existing CCA policies.
Cost and Dis istributive Im Impacts Option 1 benefits a few customers by a small amount. Option 2 benefits nearly all customers by a small amount. Option 3 primarily benefits large surplus generators, as compared to option 2. Option 4 benefits net surplus generators and customers not yet offsetting their bill. Option 5 benefits net surplus generators and customers not yet offsetting their bill. 12
Im Impacts by Location – Population Densit ity • ZIP? • Davis/Woodland/Yolo? % of NEM Customers % of MWh Returns NEM Participation % Net Surplus 95620 13
Im Impacts by Location – Median In Income % of NEM Customers % of MWh Returns NEM Participation % Net Surplus 14
Low In Income Programs • Low Income Programs tied to NEM can be built. They may take the form of: • Donating retail or wholesale adder to a low income benefit fund • Donating year-end cash-out to a low income benefit fund • Additional work would be required on program design and marketing. Program would not be available at launch. 15
Recommendation • Adopt NEM Administrative Policy Decisions, and Policy Option 4 Initial enrollment of NEM customers on a monthly basis, based on PG&E true-up date Annual true-up for all NEM customers held annually in April Cash-out only for customers with more than $100 in credits who opt-in. Other customers will have credit balance roll over to the next billing cycle. Credit customer monthly for excess generation at retail plus $0.005/kWh, without additional compensation for participation in renewable programs Settle annually at the wholesale value of net surplus generation plus a $0.005/kWh adder. • Coordinate with CirclePoint and local solar community on communication of NEM policy 16
Item 10 - Communications Update February 8, 2018
PRODUCT BRANDING 1 8
VALLEYCLEANENERGY.ORG LAUNCH
PHOTO SHOOT
PHOTO SHOOT
SOCIAL MEDIA
COLLATERAL MATERIALS 2 3
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