ity San Diego COMMUNITY CHOICE ASSESSMENT September 20 5         Community Choice Energy In the City of San Diego: An Initial Assessment of Program Prospects     Prepared for the City of San Diego by Protect Our Communities Foundation September 25, 2015      Background and Scope of Report    The Protect Our Communities Foundation (POC) submits this report to the City of San Diego  with technical appendices provided by Community Choice Partners, Inc. (CCPartners). The  report provides a summary of initial economic modeling and analysis for feasibility of a  Community Choice Aggregation (CCA) program in San Diego along with relevant background  information regarding CCA programs in California.   POC is a 501(c)(3) nonprofit organization incorporated in the State of California with a mission  to defend communities and the natural environment in San Diego County, Imperial County, and  northern Baja California and advance energy and environmental solutions through advocacy  and law.   POC initiated a study of a CCA program for San Diego in early 2014 to assess the prospects for  CCA development in the region.  POC engaged CCPartners to draft a feasibility study.  To  facilitate the study, the Mayor of San Diego requested and received relevant customer usage  data from San Diego Gas and Electric Company (SDG&E).  Pursuant to a contract between  CCPartners and the City, the data was provided to CCPartners for its analysis of customer load  patterns and the development of an analysis to determine whether consumer energy rates  through CCA could be competitive.    CCPartners did not submit a full feasibility study to POC.  However, in June 2015, CCPartners  presented POC and the City with a “pro forma” analytical model that may be used to evaluate  financial viability and consumer rates at various program sizes, utilizing multiple cost and load  assumptions. CCPartners also provided two model results with different assumptions about  program design.   As an advocacy organization, POC has supported CCA development in the San Diego region and  believes that successful experiences of CCAs in California to date support an optimistic view of  CCA implementation in other California communities.  The intent of this report, however, is to  provide a preliminary feasibility assessment for a potential CCA program in the City of San  Diego, with the recommendation that the City conduct additional and more in‐depth analysis as  a practical next step.      i    Table of Contents  Page    1.0  Executive Summary .............................................................................................................. 1  2.0  Introduction to CCA ............................................................................................................. 3  3.0  CCA Program Opportunities and Challenges ....................................................................... 4  4.0   CCA Programs in California .................................................................................................. 5  5.0   The Results of the  CCPartners Pro Forma ........................................................................... 8  6.0   Additional Analysis Needed ............................................................................................... 10  7.0   Special Considerations in San Diego .................................................................................. 11  8.0   Next Steps .......................................................................................................................... 13    Appendices    A. Glossary of Terms   B. Sample CCA FAQs   C. MCE and SCP Rate Comparisons and Power Content Label  D. MCE 2015/16 Budget   E. CCPartners City of San Diego CCA Pro Forma Cost of Service Model   (residential/commercial)  F. Sample CCA Risk Matrix  ii      1.0  Executive Summary    This report provides a summary of initial economic modeling and analysis of the feasibility of a  Community Choice Aggregation (CCA) program in the City of San Diego, also known as  “Community Choice Energy.” CCA programs permit local governments to purchase and develop  energy resources on behalf of local residents and businesses as an alternative to service from  the incumbent investor‐owned utility.  Three CCAs are currently operational in  California.Dozens of other local governments throughout the state are exploring CCA as a  strategy to achieve multiple goals, including  to provide broader consumer choice and achieve  renewable energy targets set forth in local Climate Action Plans.     The prospects for CCA programs in California have improved significantly in recent years as a  result of a number of factors:       The success of Marin Clean Energy and Sonoma Clean Power in terms of financial  viability and meeting or exceeding public policy objectives;  Favorable wholesale energy market conditions and relatively low‐cost power;  Recognition that a CCA program can be a self‐supporting option for meeting Climate  Action Plan objectives and other public policy goals;  Reduced cost of renewable power and improvements in renewable technologies;   The development of expertise, best practices, and an expanded vendor base to serve  CCA programs.  Existing CCA programs in California – Marin Clean Energy (MCE), Sonoma Clean Power (SCP) and  Lancaster Choice Energy (LCE) – have been successful in procuring cleaner power at lower  electricity rates, providing innovative services, and supporting local economies with new energy  programs and projects. With somewhat different business strategies, California’s operational  CCAs have so far demonstrated the viability of CCA programs and motivated dozens of  California jurisdictions to investigate the prospects for CCA programs. That said, CCA programs  are not without risks.  The success of a CCA depends on strong management, appropriately  hedged supply portfolios and community support.     The initial analysis summarized in this report was performed by Community Choice Partners Inc.  (CCPartners). The analysis indicates favorable financial performance for a City of San Diego CCA  given reasonable assumptions about program design, utility rates, market prices and other  factors.  It also identifies a challenge that would need special consideration, namely, the impact  on customer rates resulting from the “stranded costs” that SDG&E might experience if a large  portion of customers within the City of San Diego were to take service from a CCA.    1    The CCPartners analysis provides some insights about the prospects for CCA in San Diego, but is  neither comprehensive nor validated.  Although general information about CCA program  development, program design, risks, and opportunities is now publicly available, the City will  need more analysis that is relevant to its circumstances before making any final decisions.      POC recommends the following if the City of San Diego moves forward with a more in‐depth  investigation of CCA:      Engage consultants to:  o Conduct a validation study of CCPartners’s pro forma model by testing its  specifications and assumptions  o Perform a more comprehensive analysis of program design, scenario  development and process  o Analyze ways to mitigate SDG&E stranded costs and associated increases to the  Power Charge Indifference Adjustment (PCIA);    Allocate staff to develop and manage the planning process;   Allocate funding for program planning and development costs;   Meet with key stakeholder groups to provide information and solicit initial feedback.    If, on the basis of additional analysis, the City believes it can design a program that will serve  community goals and be fiscally sustainable, the City should:         Engage consultants to support program staff with developing documents, planning  processes, analyzing program design options and developing a communications plan;  Articulate broad program goals and policy objectives as part of formal deliberations on  the adoption of a CCA ordinance;  Develop and implement a plan for community engagement, outreach and dissemination  of information;  Consider whether to appoint an advisory committee that would report to the City  Council and Mayor;  Consider whether to engage other local jurisdictions as part of an analysis regarding  whether the City should manage a CCA program within existing city government or as  part of a Joint Powers Authority (JPA) that would be able to permit participation by  other local communities.    2    2.0  Introduction to CCA     The California Legislature passed AB 117 in 2002 authorizing local jurisdictions to develop CCA  programs that would provide electricity services to local residents and businesses.1  CCA  programs enable local governments to determine the mix of generation resources and related  energy services on behalf of the community.  They are distinct from municipal utilities, which  typically own and manage distribution facilities.  CCA customers remain customers of the  incumbent utility for distribution and transmission services, as shown in Figure 1. Customers  experience no difference in their energy delivery or billing process.   Figure 1: CCA Power Delivery    (Graphic courtesy of LEAN Energy US)  State law also provides that:   Local governments may create CCA programs with the adoption of an ordinance by the  governing body;   CCA is an “opt‐out” program – customers are automatically enrolled in CCA services but  may choose to remain with the incumbent utility or return to utility service at any time  and they may choose to opt‐out for some accounts and not others;    CCAs must ultimately offer service to all residential customers;   CCAs are subject to the same energy resource policies that apply to the state’s “load  serving entities,” including requirements for renewable portfolio content, resource  adequacy, energy storage and reporting;                                                               1  Appendix A is a Glossary of Terms for terminology used throughout this report. Appendix B is a basic fact sheet  about CCA and how it works.   3     CCA customers must pay a monthly fee called the Power Charge Indifference  Adjustment (PCIA) to assure that customers who remain with the utility are cost‐ indifferent to the CCA serving former utility customers. The CCA must account for this  “exit fee”(also known as a non‐bypassable charge) when designing its own rates.  Although they are not considered regulated public utilities, CCAs are subject to certain  rules and oversight by the California Public Utilities Commission (CPUC);    CCAs are entitled access to utility data regarding customer load by customer class.  3.0 CCA Program Opportunities and Challenges     CCA programs offer a number of potential benefits for local communities:   Consumer Choice.  CCA programs give consumers an opportunity to choose from among  energy providers. The competition may also spur innovation and a greater variety of  consumer oriented services.    Revenues for Local Economic Development. Revenues from CCA programs remain in the  community, supporting the local economy and jobs.  CCA agencies can finance local energy  projects with tax‐exempt bonds and do not have to pay shareholder dividends or large  management salaries, resulting in lower costs and rates.     Environmental Benefits. Local governments can use CCA programs to increase community  reliance on energy supplies with lower greenhouse gas (GHG) emissions.  Many local  climate action plans have stressed that a major source of GHG is from power plants that  serve the area’s population, and suggest CCA programs can support progress toward  climate action goals.     New Local Energy Programs. CCA programs can implement energy initiatives, such as  energy efficiency and demand response programs that serve specific community goals.  CCAs may also qualify for substantial funding for such programs from the CPUC.   Rate Stability and Lower Prices. Because CCAs are not profit‐driven, they can promote  strategies, such as demand reduction, that lead to lower and more stable rates over the  long term.    Local Control of Energy Planning and Pricing. CCAs are either public agencies or programs  of public agencies with authority to set rates and make decisions about energy services to  their customers.  As local agencies of government, they are closer to the local public and  subject to state laws regarding open processes and transparency.  Accordingly, they are  more likely to be responsive to local needs and community objectives.    CCA programs also face risks. California law is unclear with regard to the extent to which local  governments may be responsible for CCA liabilities. The main risks associated with CCA include:  4                Market Price Fluctuations. California’s energy markets have been stable for several years,  and prices are low. The current buyer’s market is expected to continue for the coming  several years because California has excess energy supplies. However, energy markets could  change.  California law now requires CCAs to hedge their risks by purchasing long term  supplies for 65 percent of their supply portfolios by 2021, which could result in higher prices  for renewable energy.     Regulatory Risk.  In recent years, the CPUC has adopted some proposals for rates and  services that have not been favorable to CCAs. Subsequently, regulatory participation by  CCAs is essential and must be accounted for as a necessary cost.   Operational and Management Risk. CCA programs operate in complex energy markets and  are subject to complicated regulatory requirements. CCA success depends on realistic  business strategies and sound management.   Community Outreach and Communication Challenges. Experience in other jurisdictions  suggests CCA development and implementation will require communications strategies to  assure the program is accepted by local communities and that program design aligns with  community goals and expectations.  Even with a solid communications strategy, CCA  development may meet with opposition. Since passage of SB 790 in 2011, anti‐CCA  marketing has subsided to some extent as California statute prohibits utilities from  marketing against CCA development.   4.0   CCA Programs in California     Currently, California has three operating CCAs, two of which have demonstrated financial  viability, achieved environmental objectives, and provided new services to customers (the third  began operation in May 2015).  The State’s first CCA, Marin Clean Energy, launched in 2010 by serving a portion of Marin  County residents and businesses.  Today, it serves all of Marin County and unincorporated Napa  County, as well as the cities of El Cerrito, Richmond, Benicia, and San Pablo.  MCE has  purchased electricity from the state’s wholesale market and from local renewable projects.     Sonoma’s CCA, Sonoma Clean Power, launched in May 2014 and currently serves all of Sonoma  County. It has plans for developing about 90 MW of new renewable power supplies in its  service area in partnership with private developers.     The City of Lancaster launched Lancaster Choice Energy (LCE) in May 2015 and plans to  purchase power from local solar projects, including a 20‐year power‐purchase agreement with  sPower recently approved by the Lancaster City Council from the Western Antelope Dry Ranch  5    project priced at about $55/MWh. Additionally, LCE has announced plans for a large‐scale  energy storage project to support greater utilization of locally‐supplied solar energy.    Both MCE and SCP are providing energy‐related services such as energy efficiency retrofits, on‐ line energy usage monitoring, community electric vehicle charging stations, on‐bill financing,  and energy storage. MCE and SCP offer customers a 100 percent clean power option sourced  from local renewable resources. SCP and MCE have so far been successful financially, with solid  reserves after making substantial investments in the local community and offering services not  provided by the incumbent utility.  MCE and SCP were established at the county level and are each governed by a Joint Powers  Authority (JPA), which gives them flexibility to add new communities and protects their local  jurisdictions from operational and market risk. LCE is a program of city government. Table 1  summarizes the program elements in California’s three operational CCAs. More information  about these CCAs’ rates, services, financials and greenhouse gas impacts are included in  Appendices C and D.    6    Table 1. Summary of Program Elements ‐ Operational California CCAs    Marin Clean Energy (2010)  Sonoma Clean  Power (2014)  Lancaster Choice  Energy (2015)  Customers  165,000 by end of 12/15  ~200,000  56,000 by 10/15  Opt‐Out  Rate  22 percent  11 percent  TBD  FY 2015‐16  Budgets   $145,933,097  $165,495,000  $25,000,000  Service  Area  All Marin County; cities of  Richmond, San Pablo, El  Cerrito, Benicia, and  unincorporated Napa Co.  All Sonoma County  and Sonoma  County cities  City of Lancaster  Percentage  50 percent minimum with opt‐ RPS  up to 100 percent  Qualified  33 percent  minimum with  opt‐up to 100  percent  35 percent minimum  with opt‐up to 100  percent  2015  Generation  Rates   On average, 6‐9  percent lower than  PG&E; 10‐14  percent less for  low income  customers  On average, 3  percent lower than  Southern California  Edison (SCE)  On average, 3‐7 percent lower  than PG&E    The success of MCE and SCP has motivated many other California communities to investigate  CCA programs, as shown in Figure 2. Currently, more than 20 counties representing hundreds of  cites are investigating or actively pursuing CCA formation. The County of San Mateo and the  City of San Francisco are among the jurisdictions that are currently planning to launch services  in 2016.              7    Figure 2. California Political Jurisdictions with Operational CCAs or that Are Evaluating CCA    (Chart courtesy of LEAN Energy US, dated May 2015)  5.0   The Results of the CCPartners Pro Forma    The CCPartners pro forma provides a snapshot of the financial viability of a City of   San Diego CCA program based on certain strategies and using specific assumptions. The  modeling conducted by CCPartners for POC analyzes a City of San Diego CCA program in its first  three years of operation with the following program strategies:   Initial program launch in April 2016;   Initial service offered to 45 percent of residential and medium commercial customers,  and 100 percent of all other commercial customers;   A supply portfolio comprised of 33 percent renewable energy resources with no  unbundled “RECs”;   A net energy metering program that pays $.01 more than retail for local renewable  energy supplies;   $3 million allocated to CCA programs such as energy efficiency, demand response or  feed in tariffs;   Customer generation rates that are 5 percent lower than SDG&E’s, net of the PCIA exit  fee.    8    According to CCPartners, the model includes the following assumptions:   First year program costs of $9 million for management costs, consulting fees, regulatory  compliance and customer outreach, a cost higher than reported results for MCE and  SCP;   A PCIA “exit fee” (non‐bypassable charge) of $.01/kWh, based on SDG&E’s methodology  for calculating the PCIA (and higher than the current tariffed rate of $.008/kWh);   Wholesale energy prices that are consistent with the 2015 market forecasts of the  California Energy Commission;   Customer demand of approximately 2,600 gigawatt‐hours (GWh) in the first year,  growing to about 3,400 GWh in the second and third years;    Customer load profiles that are derived from and consistent with 2013 SDG&E‐supplied  customer data for 2013;    SDG&E generation rate increases according to an escalator from E3’s GHG calculator;   A 20 percent “opt‐out” rate, higher than either of the actual opt‐out rates in MCE or  SCP;   First year financing for energy purchases and other costs of approximately $50 million  with full repayment within 12 months.  Using these assumptions, the CCPartners pro forma suggests the City’s CCA could offer  generation rates at a 5 percent discount with a product offering that is comparable to SDG&E’s  existing renewable energy portfolio, with the modeled portfolio achieving the state’s  Renewable Portfolio Standard (RPS) 2020 requirements in the CCA’s second year of operation.    The pro forma results suggest the City would have substantial funds for local energy programs  and an adequate reserve at the end of the first year after paying off first year debt.  Specifically,  the pro forma shows a fund balance of about $60 million on gross revenues of approximately  $222 million. The fund balance would increase to about $176 million by the third year,  assuming no additional investment in local energy projects or programs. The CCPartners  spreadsheet analysis is provided in Appendix E.  CCPartners also analyzed the financials assuming service to all commercial customers but no  residential customers in the first three years.  The results are slightly more advantageous, with  a 10 percent rate discount and a fund balance of $206 million by the third year.  This program  design would need to be short‐term because of California’s statutory requirement that the CCA  offer service to all residential customers.  Although the law does not provide a timeline for the  service, the City would likely consider including some residential customers in the first three  years of the program to maintain broad public support.   9    While a comprehensive review of CCPartners modeling results has not been conducted by POC,  the CCPartners financial projections appear to rely on reasonable assumptions. For example,  the opt‐out rate is conservative as it is higher than actual opt‐out rates in operational CCA  jurisdictions. The SDG&E rate assumptions and market prices appear to be based on accepted  forecasts.    The first year margin of about 27 percent is higher than actual margins of existing CCAs, which  have so far been less than 15 percent.  However, the lower MCE and SCP results might be  expected since: (1) both CCAs have a higher proportion of more expensive renewable content  in their portfolios than assumed in the CCPartners analysis for San Diego’s program, (2) both  CCAs have made proportionately larger investments in local energy programs and projects that  would have the effect of reducing their respective fund balances, and (3) SDG&E has the  highest generation rates of any IOU in California, while wholesale market and forward prices for  the region are significantly lower than these rates.   The model assumes a launch date of April 2016.  This is not realistic and was not realistic at the  time of the model run in June 2015. However, the April 2016 launch date was chosen so that  the model would provide an “apples to apples” generation rate comparison with SDG&E under  current market conditions. A model run with updated information would undoubtedly change  the outcomes, although it is not obvious in which direction.  6.0   Additional Analysis Needed    The results from the CCPartners model are preliminary and are not comprehensive.  Although a  high level review of the model suggests both its assumptions and results are reasonable in light  of experiences in other jurisdictions, POC has not tested the way the pro forma model  calculates outcomes or verified every assumption.   As noted, the model would have to be  updated closer to when the City plans to launch a CCA.   Additionally the energy landscape is evolving in various ways, such as the RPS target moving  above 33 percent, that are not incorporated into the existing model runs.   The pro forma model can estimate rates and financials for different sets of assumptions about  program design, market conditions, and other metrics, but POC has not performed model runs  with different sets of assumptions. Before making any decisions about whether to proceed with  a CCA program, POC advises the City to consider:   Validation of the CCPartners model assumptions – The CCPartners pro forma model  should be reviewed for the accuracy of every model input and assumption regarding, for  example, SDG&E rates, the PCIA, customer load, commodity cost forecasts, congestion  and resource adequacy prices, and program costs.  All of the models inputs will affect its  results;  10     Validation of the CCPartners model’s functionality – POC has not tested the way the   CCPartners model is specified or its analytical rigor, for example, whether the forecast of  the PCIA changes with differing forecasts of load, and whether changed assumptions  regarding supply costs will be accurately reflected in net margin;   Scenario Development on program design: – More analysis is needed regarding  program design options and customer phase‐in strategies, for example: how a  “commercial customer first” program in the first several years might affect financials;  the schedule for phase‐in of various customer classes and regions, portfolio content,  customer services and build‐out strategies; and how partnerships with other regional  communities might affect program viability;   Sensitivity analysis –  The CCPartners model should be run for changes in assumptions  regarding, for example, SDG&E rates, program design, opt‐out rates, market prices,  portfolio composition and load by customer class;   Higher renewable energy levels – The CCPartners model assumed a 33 percent  renewable energy supply portfolio, with no unbundled “RECs,” by 2017; based on  comparable rates of renewable energy in the region, the City may wish to analyze higher  levels of renewable energy supply and various strategies for achieving its targets;   Relevance of 2013 load and customer class data – The CCPartners model relies on data  from 2013, with average customer usage escalated according to CEC load growth  forecasts. Because the City could not expect to launch a program before 2017, the City  may wish to update load data for incorporation in any additional analysis.  7.0   Special Considerations in San Diego     The City of San Diego’s customers’ energy demand represents almost half of SDG&E’s total  load.  This circumstance, which is so far unique for California CCA programs, has implications for  the CCA’s competitiveness, at least in the near‐term.  If the City’s CCA were to serve all San  Diego residents and businesses, SDG&E would have substantial “stranded investments” related  to long‐term energy supply commitments. Related costs are allocated to the CCA’s customers  according to state law in the form of an exit fee (non‐bypassable charge) to the CCA’s  customers.  The CPUC regulates this exit fee, which the CPUC and utilities refer to as the PCIA.   Even though customers pay the utility the PCIA, the impact of the PCIA on CCA customers must  be considered in any CCA rate analysis to assure CCA customers do not pay more for CCA  service than they would pay for SD&GE service.       11    CCPartners preliminary analysis suggests that, because of potential increases to the PCIA as it is  currently structured, CCA rates may not be competitive with SDG&E’s if initial customer  enrollment in the CCA is too large without additional regulatory reform related to how the PCIA  is calculated.     This threshold may occur when SDG&E loses more than about 3,500 GWh of load to the CCA.  This is roughly equal to the amount of energy forecasted to be used in 2016 by 80 percent of all  City of San Diego commercial customers. It is also the amount expected to be used in 2016 by  45 percent of the City’s residential and medium commercial load, plus 80 percent of the small  and large commercial load. This represents a substantial CCA customer base in the first three  years of operation.    Not coincidentally, CCPartners modeled initial CCA programs with these characteristics because  the associated customer class demand forecasts came in just under the 3,500 GWh threshold.     Because of the potential cost impact of substantial increases to the PCIA if there is a large  customer shift in the initial phase, a San Diego CCA could not offer full enrollment at  competitive rates to all San Diego customers during the first three years of the program unless  the CCA is able to negotiate some cost mitigations or develop PCIA mitigating program design  strategies.      This circumstance is a challenge that will require additional analysis and some creative thinking  about how to balance SDG&E’s obligation to provide reliable electric services and the CCA’s  need to offer competitive rates.  However, it is important to note that the two established CCAs  in California, MCE and SCP, have incrementally added customers over time. This same approach  would occur with a City of San Diego CCA as the PCIA issue is resolved.    If the City decides to move forward, it should engage both SDG&E and the CPUC in early  discussions about how to plan for a transition to full CCA service to all customer categories. For  example, the CCA may be able to purchase excess power supplies from SDG&E at cost rather  than going out into the wholesale market, which would reduce SDG&E’s liability and mitigate  increases to the PCIA.  In both modeled scenarios, the fund balance by the second year is  substantial, which could be used to mitigate PCIA impacts. SDG&E may be able to renegotiate  some of its contracts or sell power in wholesale markets to mitigate losses.      CPUC policy already requires that SDG&E develop realistic assumptions about “departing load”  in developing its long and medium term power supply strategies. SDG&E and the City may be  12    able to agree on procedures to facilitate good planning, such as a notification process or  schedule that provides some assurance to SDG&E regarding its future service obligations.     The City can accommodate this period of transition and mitigate cost impacts by phasing‐in  customer participation. California law does not specify a timeline for offering service to all  residential customers. Any reasonable timeframe may be acceptable, especially if the reason  for postponing expansion of the CCA customer base is to protect customers from higher rates in  a program that requires customers to affirmatively opt‐out.    8.0   Next Steps    If the City of San Diego decides to move ahead with the next stage of CCA investigation, it  should:    Engage consultants to conduct a validation study of CCPartners pro forma model results  by testing its specifications and assumptions; perform more comprehensive analysis of  program design, scenario development and process; and analyze ways to mitigate  SDG&E stranded costs and associated increases to the PCIA;    Allocate staff to develop and manage the planning process;   Allocate funding for program planning and development costs;   Meet with key stakeholder groups to provide information and solicit initial feedback.    If, on the basis of additional analysis, the City believes it can design a CCA program that will  serve community goals and be sustainable, the City should:         Engage consultants to support program staff with developing planning documents,  analyzing program design options and developing a communications plan;  Articulate broad program goals and policy objectives as part of formal deliberations on  the adoption of a CCA ordinance;  Develop and implement a plan for community engagement, outreach and dissemination  of information;  Consider whether to appoint an advisory committee that would report to the City  Council and Mayor;  Consider whether to engage other local jurisdictions as part of an analysis regarding  whether the City should manage a CCA program within existing city government or as  part of a JPA that would be able to permit participation by other local communities.  13    APPENDIX A    GLOSSARY OF TERMS  Term  Meaning  Behind‐the‐meter  Refers to energy efficiency or electricity generation that takes place on the customer side  of the electricity meter rather than on the utility/grid side.  California Public Utilities  Commission (CPUC)  California’s State agency in charge of regulating investor‐owned utilities.  Community Choice  Aggregation (CCA)  The legal term used in AB 117 and by the CPUC for programs herein referred to as  Community Choice Energy.  As authorized by statute, CCA allows local governments to  pool the municipal, residential and commercial electrical load within their  municipalit(ies) for the purpose of procuring and developing power on their behalf.   Demand response  Technology that lowers electricity demand (or consumption) in response to shortages in  the available supply of electricity.  Direct Access  A program that permits utility customers to purchase power supplies from a provider  other than the incumbent utility; CCA programs are not considered direct access   Feed‐in tariff  A standard power contract, usually for small projects 1MW or less, that requires the  utility to pay a set amount for generated renewable electricity for a set number of years,  depending on technology.  Greenhouse gas (GHG)  A gas that causes the atmosphere to trap heat radiating from the earth. The most  common GHG is Carbon Dioxide, though Methane and others have this effect.  MWh (megawatt‐hour)  A unit of electrical energy that is produced or consumed= to 1,000 kilowatt hours. Thus,  8,000 kwh = 8 MWh.   Implementation Plan  A plan CCAs must present to the CPUC for its certification and review for consistency  with state law and CPUC rules  Investor‐owned utility  A privately‐owned power distribution company, such as Pacific Gas and Electric (PG&E),  that in California is regulated by the CPUC.  Joint powers authority (JPA)  An entity permitted under the laws of some states, whereby two or more public  authorities (for example, local governments, or special districts) can operate collectively.  Electric Load  The amount of electricity a customer or group of customers uses; also referred to as  “demand.”  Load‐serving entity  A firm or organization that purchases electricity on behalf of any customer or group of  customers.  Once formed, a CCA is considered a load serving entity.   MW (megawatt)  A unit of electrical power equal to 1 million watts that expresses the capacity (or power  rating) of power plants or consuming devices.  As a unit of capacity, a MW is distinct  from a MWH, which is a unit of electricity.  For example, a solar plant with a capacity of 1  MW will – running at fully capacity – produce a MWH of electricity in one hour.   Microgrid  A local, small scale power grid that can operate independently of or in conjunction with  the central utility system.  14    Net metering  A state‐mandated program through which utility customers with behind‐the‐meter  renewable generating facilities smaller than 1 MW can receive bill credit for power not  used on‐site and delivered to the grid (causing the meter to run backwards).  PCIA or “exit fee”  Power Charge Indifference Adjustment (PCIA) is a nonbypassable charge based on  stranded costs of utility generation set by the California Public Utilities Commission. It is  calculated annually and assessed to customers who take service from an electric  generation provider (e.g. CCA) other than the incumbent utility. The electrical power demand at that time, over the course of a year and during the day,  when electricity consumption is greatest.  (nonbypassable charge)  Peak load  Power Purchase Agreement  (PPA)  Term for energy supply contract  Renewable energy certificate  (REC)  A certificate of proof that one MWh of electricity was generated and delivered to the  grid by an eligible renewable energy resource. A REC can be sold together with the  underlying energy or “unbundled,” and sold separately.  Law that requires CA utilities and other load serving entities (including CCAs) to provide  an escalating percentage of CA qualified renewable power (culminating at 33 percent by  2020) in their annual energy portfolio.    An arrangement by which many electricity customers in a community may each own a  portion of a solar PV generating facility, and therefore receive a share of the electricity  and/or revenue it generates.   An electricity supply network that uses electronic communications and management  systems to respond to changes in system requirements.  Renewable portfolio  standard (RPS)  Community shared solar  Smart grid  Solar PV  A solar electricity generating technology in which solar energy is transformed into  electricity through a photovoltaic (PV) effect.  Unbundled RECs  Renewable energy certificates that verify a purchase of a MWH unit of renewable power  where the actual power and the certificate are “unbundled” and sold to different buyers.  (Courtesy of LEAN Energy US)  15    APPENDIX B    SAMPLE CCA FAQ SHEET: PREPARED FOR SILICON VALLEY/SANTA CLARA   (courtesy of LEAN ENERGY US)    Community Choice Energy (CCA)   Frequently Asked Questions     What is Community Choice Energy? Community Choice Energy (CCA) is a program that enables  city and county governments to pool (or aggregate) the electricity demand of their communities  for the purpose of supplying electricity. A CCA buys and/or develops power on behalf of the  residents, business, and government electricity users in its jurisdiction. The electricity continues  to be distributed and delivered over the existing electricity lines by the incumbent utility‐which  is Pacific Gas and Electric (PG&E) in Northern California.       How will CCA be administered in Silicon Valley/Santa Clara County? The CCA program will be  administered by a joint powers agency that serves as a public, non‐profit agency on behalf of  municipalities that choose to participate in the CCA. It is important to note that through the JPA  structure, the assets and liabilities of the JPA remain separate from those of the County or City  general funds.  Thus, any surplus funds generated by the CCA will be reinvested back into the  community in the form of new energy projects and programs and will not flow back into the  general funds of the JPA’s member jurisdictions.    How are CCA’s funded?  All CCAs, once they are operational, are completely ratepayer funded  and are not subsidized by taxpayer dollars.  Ratepayer revenues for electrical generation  services currently go to the incumbent utility (PG&E), but would be re‐directed to the CCA  program which would become the County’s default provider of electrical generation services.     Why are so many local governments considering CCA? CCAs provide consumer choice where  none currently exists and have also resulted in lower electrical generation rates.2  In addition,                                                               2  http://www.mcecleanenergy.org/residential‐rates/   16    CCAs provide communities with local control over their energy supply, allowing them to increase  the amount of electricity procured from renewable sources, such as solar, wind, and  geothermal. CCAs can also develop innovative energy programs tailored specifically to their  communities and support the development of local renewable energy projects.  Finally, CCAs  introduce competition into the energy market, which helps drive costs down, stimulate new  energy investments, and diversify power choices. Customers in a CCA jurisdiction can choose to  stay with the CCA program or return to PG&E’s generation service; customers always have the  power to choose.      What are the economic advantages of CCA? In addition to the potential for customer rate  savings and the economic value of ratepayer revenues serving our community rather than a  utility territory ten times our size, CCAs can aCCAlerate the development of local renewable  energy projects and facilitate other energy innovations such as energy efficiency retrofits, home  area networks, battery storage and EV charging stations to name a few.  This translates into the  potential for new local services and consumer benefits as well as significant regional and local  job creation. It should be noted that renewable energy facilities provide many more jobs per  unit of investment than traditional natural gas and coal plants.3      What are the environmental advantages of CCA? CCAs can choose to purchase from and  develop electricity sources that are more heavily weighted towards renewable energy and  carbon free power resources. The production and burning of traditional energy sources, such as  coal and natural gas, generates large amounts of GHG emissions into the atmosphere. These  GHG emissions are a leading cause of pollution and climate change.      How does this relate to my city’s Climate Action Plan? Many cities and counties now have  “Climate Action Plans” that outline various measures that the city or county can take to reduce  its GHG emissions and conserve natural resources. In Santa Clara County, electricity  consumption is a main source of GHG emissions. Joining a CCA is one way jurisdictions in the  county can reduce their GHG emissions from electricity and meet their local climate goals.     Has this been done in other areas and what are the results? There are two CCA programs up  and running in California: Marin Clean Energy (MCE) in Marin County and Sonoma Clean Power  (SCP) in Sonoma County. Both MCE and SCP offer their customers 10‐30 percent more  renewable energy  than PG&E at prices that are competitive and currently lower than PG&E’s  rates. MCE and SCP are now actively procuring and co‐developing in‐State and local renewable  resources and offering specialized energy programs designed for their local service areas. A third  CCA in the City of Lancaster will begin serving customers in May, 2015 and there are many local  governments in California currently investigating CCA’s potential for their communities.     If a CCA is formed in Silicon Valley/Santa Clara County, what is PG&E’s role? If a CCA forms in  Santa Clara County, the CCA would be responsible for buying and/or developing all the  electricity required to meet the demands of its customers. Customers who choose to opt‐out of  the CCA would continue to have PG&E buy their electricity. All customers, whether they are a  part of the CCA not, continue to pay PG&E for transmission and distribution services and receive                                                                                                                                                                                                     http://sonomacleanpower.org/for‐my‐home/rates/   3  Pollin, Robert.2012, Economic prospects‐getting real on jobs and the environment: pipelines, fracking or clean  energy?, New Labor Forum 21(3):84‐87.  17       a single, consolidated bill from PG&E. The only difference between a CCA and PG&E customer’s  bill is the source of electricity and line‐item charge for energy generation.    If the power goes out, will PG&E still fix a CCA customer’s outage problem?  Yes, PG&E  continues to provide the same delivery, line maintenance, and customer services regardless of  whether that home or business is part of the CCA program.    If I join a CCA, will my electricity rates go up?  A technical study will examine the impacts of a  CCA on rates, but so far, CCA electrical rates have generally been 5 ‐ 8 percent lower than  PG&E‘s rates. This is dependent on the customer class and the particular CCA option each  customer chooses. Current CCAs offer a “default” option that is both cleaner and cheaper than  PG&E, as well as a 100% renewable energy option that is slightly more expensive than PG&E’s  default product.  In addition, CCAs have the added advantage of price stability. While PG&E  rates change several times a year, CCA rates generally adjust once per year, offering a measure  of rate stability for CCA customers.  While there is no guarantee that CCA generation rates will  always be lower than PG&E’s generation rates, CCAs do have the advantage of being small, non‐ profit agencies that pay no shareholder dividends, high corporate salaries, or income taxes like  investor‐owned utilities do.      How does a CCA procure electricity? A CCA must submit a plan to the California Public Utilities  Commission (CPUC) that specifies how it will purchase 115 percent of the estimated electricity  demand for its area for a period of one year. Once the plan is approved, CCAs negotiate the  purchase of electricity for its service area on the open energy market by entering in power  purchase agreements (PPAs) with energy providers. These PPAs can be long or short term,  depending on the needs of the CCA and type of energy being provided. A CCA can also sponsor a  bidding process whereby project developers can bid to build new electricity sources solely for  CCA customers. Through a utility service agreement, the power a CCA procures is transmitted  over PG&E’s power lines.     Do the electrons purchased or generated by the CCA actually go to my house?  No, when we  say that the CCA supplies power to customers, we mean that the CCA puts the same amount of  electricity onto the grid that its customers use. When the individual electrons from all power  resources go onto the grid no one can determine which electrons go where. Think of it as  depositing $100 in one ATM and taking out $100 in another.  It’s not the same $100 bill, but it’s  still your money.  One can think of electricity in the same way.  If you consume 500 kilowatt‐ hours in a month, the CCA must supply 500 kWH to the grid on your behalf. The advantage of a  CCA is that what’s supplied to the grid on your behalf can be both cleaner and less expensive  than what PG&E is putting on the grid.    How is a CCA program set up?  Local governments must pass an ordinance to join a CCA  program, and the CCA agency must draft an Implementation Plan that is approved by the CPUC.   This is typically done after an initial technical study to determine the amount of electricity that  will be required and to examine a CCA’s ability to be cost competitive with PG&E.  The  Implementation Plan outlines how the CCA will function, how it will set rates, how it will procure  electricity, and how it will carry out all other functions required under CPUC regulations.    18     I have heard that CCAs are “opt‐out” programs.  What does that mean?  When a county or city  decides to create or join a CCA, all customers within that jurisdiction are automatically enrolled  in the CCA; the CCA becomes the default provider of electrical supply. However, any customer  can choose to opt‐out and return to the incumbent utility (PG&E) for generation service at any  time (remember: gas service, electric power delivery and customer billing is always provided by  PG&E).  State law requires that customers receive several notifications to opt‐out just before  and just after a CCA program launches.  At any time after that initial launch period, a CCA  customer can return to the incumbent utility’s service for a small administration fee.   What is the governance structure of a CCA? There is no law regulating how the how the  governing body a CCA should be structured, so each CCA is a little different.  Most CCAs are  governed under a Joint Powers Agreement by a Board of Directors. The Board of Directors is  usually comprised of a representative from each member city (and the county) within the CCA  jurisdiction. The Board sets the CCA’s policies and electricity rates. A CCA may also have an  advisory committee made up of representatives from other stakeholder groups, such as local  businesses and community organizations. CCAs also employ a small staff to run the day‐to‐day  operations of the program and interface with CCA customers.  As a public agency, the CCA  process is designed to be very transparent with all meetings and information open to the public.   If I installed solar panels on my home or business, would I need a Power Purchase Agreement  to sell our excess energy to a CCA? No. This is called net metering, and the CCA would be able  to offer property owners fair market rates for their excess energy production without a  Purchase Power Agreement, even if that solar installation took place before the CCA launched.   CCAs have been able to offer better net metering rates for customers who generate surplus  electricity, and those customers would automatically be enrolled into a CCA’s net metering  program, unless they choose to opt‐out and remain with PG&E.  Larger solar projects that are  “in front of the meter” can also be facilitated under a CCA’s feed‐in‐tariff program which uses a  standard power contract with set prices to buy all the power generated from that facility on  behalf of CCA customers.    Are there other websites/resources I can check out?  Yes.   For information about Marin’s CCA program, go to www.mcecleanenergy.com   For information Sonoma’s CCA program, go to www.sonomacleanpower.org.    For general information about CCA, go to www.leanenergyus.org.     I want to learn more about the Silicon Valley Community Choice Energy Partnership. Who can  I contact?  For more information and contact information, please visit…..  19    APPENDIX RATE COMPARISONS AND POWER CONTENT LABELS . . Sonoma 2015 Realdentlai Cost ?nnPower ClganStart Ever?rgen 233,;- 33-32-12. 100% 54 Ermsq'; i antiwar-I: Irruwohlu Enum- 511313 5555:} 53130 553.35 5:53.35 $58.85 I-In-np- I '1 1' - I.l' .I I ll 511315? HEDGE: ?D?lEinu-cun calculated by Sommn?mr wanna data Jaruury 2015 MCE Residential Cost Comparison (Gamma, 505 MCE MC E- llgl'li? Deep Green Green 50% DEIIVEW $44.37 Ga nam?nn $5.21 $3723 A FEES $5.3 Dellveqr rates stayI the same Generatlnn rat-es vary by sewlce uptlan PGEE adds exlt fees on CD: customer Eye-n exit fees, total coat for light Green Is less than PGELE 20 I Sonoma Clean Power Generatlon MIX CiganStart EverGrgen Specific Purchases Percent of Total Retail Sales (kWh) 27% 36% 100% 5% 3% 0% 5% 12% 100*The generation data represents 2014 and is provided in the "Annual Report to the California Energy Commission: Power Source Disclosure Program," excluding voluntary unbundled renewable energy credits. data is subject to an independent audit and verification that will not be completed until October 1. 2015. 21 APPENDIX MCE 2015/2016 OPERATING BUDGET MARIN CLEAN ENE REY FUND Proposed Budget Fiscal ?I'ear 2015MB Eli-?15 H1316 Prep-used Prnpused Increase All-em BIKE Bud?! {Deni-easel All] WEE: Rename- Elemieitgr [netefalm] i 99.13.31? 145.533.1191 5 45.5mm Heuenue Gunshiem?m fun lease iermina?m 4mm - HDEIHJOE TDEH swans 99.53631? 145.933.1151" EIFEPIIHTLIREE Mil] DTHEH USES: 519005351 EARTH 41.321164 Fersumel 1mm 524.315 Ted'nieai unnsuilais 515.31? mm 54.0% Legal ant-?e] 4mm emsuilmls and misled exp-Elisa 75am 3'51.? 1m} Dela Hanger 2.551]. mean 312.? Bern-inefes 1121.? Dlhersauics 354. 113.1101! Gel-Mani! admin] 3mm mu - 251].? Iniegahed demmd side plat mans - 50.1?! sum-n Hal-in Calm green hua'?s man Lm inc-me seisr limp?ME 2553?1} WIND Tue! Maple-emira BEES-.551 111111.315 43.31.53.161 CAPITAL mv 420M meme} DEBT 1.19531} 1.11111.? Renew-die Enemy?eseme Fund 1mmu Lmai ?enewsilieEula-rm.I Devehzqanent 1mm 151.353 41.33-9- Tuiai 'nler?dnd haulers 1mg 1.1513!!- W. . Tali ewe-Hm Mel increase ?deuease] in available ind haiaree i ill-11.349 i $511.? I 1.455.151 WTEEJCDHIEHTS Eee?it?y Rewnue-pm?eted revenue- hduci?expancied and rate harem. helm-E emandedteniteries- Fersernei -irrereesedue13upiamed staffhhesfu?h?ar?ibn'mg m1: per?rmed by enema cummiea?nns cmsuitanls ta staff. and male eciLEu'nenls and mises. Tedurlical Winnie - 12-11515 imu'ease with expmded lerrimry. Legal priel'yrear. 'lha'l Lmexpected masts- reiatedteAE 2145 mned. Cumuniea?uns 5531:133- Him msi?m tn external emsmraris with staff. Dahllanayer? Mable Subtitles maga- permeter.whidl eupmsien. Serviaee U?w?eniees-plamied hueesefurirlia?en. ?ethereal bLI'ld'rI-g. su?'lebudgetisrechmed?nm leslyear.C-usb asseeiatedw'lh sayings. Dmupaley- this eeteh'y Nudes ul?iee lee-5e. utililia and maintenance in the nE'? af?ne buidim. Capibl {h?hy? Epita] required fnrtenant hip-menu"; en?eyeewista?ais i1 newI 22 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION SHORT TERM COST OF SERVICE MODEL Energy Requirements (MWH) LOAD AT METER LOSS ADJUSTED LOAD (LAL) On Peak Off Peak BILATERAL CONTRACTS & MARKET PURCHASES On Peak - SP15 (EZGen) Off Peak - SP15 (EZGen) Market Purchases Market Sales RPS Category 1 RPS Category 2 RPS Category 3 GHG Free Energy Prices ($/MWH) BASE POWER PRICE On Peak - SP15 (EZGen) Off Peak - SP15 (EZGen) RPS CATEGORY 1 ADDER RPS CATEGORY 2 ADDER RPS CATEGORY 3 ADDER CARBON FREE ADDER Energy Costs ENERGY RPS & GHG FREE ADDERS CAISO CHARGES & CONGESTION COSTS NET ENERGY METERING PROGRAM TOTAL RA Obligations & Allocations (MW-Mo) PEAK MW (LAL) PEAK MW (CEC ADJ. FOR COINCIDENCE & DER) ZONAL TOTAL (CEC ADJ. PEAK X 115%) DR Allocation - System DR Allocation - San Diego IV RMR Allocation CAM Allocation San Diego IV Flex Cap Category 1 Flex Cap Category 2 Flex Cap Category 3 ZONAL OBLIGATION (TOTAL-RMR-CAM-DR) System LCR - San Diego IV Flexible Category 1 Category 2 Category 3 Generic 2016 FEB 2018 2016 JAN 2017 2016 - 2016 MAR Program Launch 2016 APR 2016 MAY 2016 JUN 284,494 295,204 184,448 110,755 - 285,213 295,877 187,465 108,413 3,409,143 3,538,588 2,229,398 1,309,190 296,190 307,223 198,334 108,890 3,394,705 3,523,601 2,219,956 1,303,645 - 2,643,746 2,744,078 1,732,169 1,011,909 - 184,455 110,805 12,003 12,061 63,009 33,928 - - 187,567 108,321 15,445 15,456 63,009 33,928 - - 198,238 108,854 12,132 12,002 63,009 33,928 - 2,292,282 1,308,948 136,935 199,576 843,763 281,254 - $36.88 $26.49 $25.00 $6.00 2,282,573 1,303,404 136,355 198,731 840,189 280,063 - $36.91 $28.84 $25.00 $6.00 1,795,835 1,011,718 108,739 172,215 567,084 305,353 - $37.38 $30.53 $25.00 $6.00 $39.80 $33.06 $25.00 $6.00 $38.96 $32.00 $25.00 $6.00 $45.42 $36.35 $25.00 $6.00 $40.14 $33.16 $25.00 $6.00 $42.94 $34.43 $25.00 $6.00 $3.50 $40.52 $32.52 $25.00 $6.00 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $0 $0 $0 $0 $0 $10,611,049 $1,778,800 $1,323,596 $151,190 $13,864,634 $0 $0 $0 $0 $0 $11,202,360 $1,778,800 $1,397,354 $114,761 $14,493,276 $168,235,993 $22,781,601 $20,985,336 $794,943 $212,797,874 $11,660,087 $1,778,800 $1,454,450 $45,060 $14,938,398 $158,373,736 $22,685,116 $19,755,143 $767,503 $201,581,499 $0 $0 $0 $0 $0 $118,130,103 $16,009,204 $14,735,253 $679,034 $149,553,593 - 547 488 562 12 9 9 9 541 223 318 92 87 (1) 5 450 - 665 640 735 11 8 8 8 716 292 424 147 135 4 8 570 6,977 6,034 6,939 105 1,100 1,100 1,002 98 5,734 3,003 2,731 735 319 324 92 4,999 655 622 715 6 10 10 10 699 284 415 196 131 55 10 503 6,949 6,010 6,912 105 269 269 171 98 6,538 2,869 3,670 1,559 1,145 323 91 4,979 - 5,583 4,937 5,677 97 75 75 75 5,505 2,256 3,249 1,268 1,008 193 67 4,237 23 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION SHORT TERM COST OF SERVICE MODEL Energy Requirements (MWH) LOAD AT METER LOSS ADJUSTED LOAD (LAL) On Peak Off Peak BILATERAL CONTRACTS & MARKET PURCHASES On Peak - SP15 (EZGen) Off Peak - SP15 (EZGen) Market Purchases Market Sales RPS Category 1 RPS Category 2 RPS Category 3 GHG Free Energy Prices ($/MWH) BASE POWER PRICE On Peak - SP15 (EZGen) Off Peak - SP15 (EZGen) RPS CATEGORY 1 ADDER RPS CATEGORY 2 ADDER RPS CATEGORY 3 ADDER CARBON FREE ADDER Energy Costs ENERGY RPS & GHG FREE ADDERS CAISO CHARGES & CONGESTION COSTS NET ENERGY METERING PROGRAM TOTAL RA Obligations & Allocations (MW-Mo) PEAK MW (LAL) PEAK MW (CEC ADJ. FOR COINCIDENCE & DER) ZONAL TOTAL (CEC ADJ. PEAK X 115%) DR Allocation - System DR Allocation - San Diego IV RMR Allocation CAM Allocation San Diego IV Flex Cap Category 1 Flex Cap Category 2 Flex Cap Category 3 ZONAL OBLIGATION (TOTAL-RMR-CAM-DR) System LCR - San Diego IV Flexible Category 1 Category 2 Category 3 Generic 273,741 284,123 176,726 107,397 189,204 113,924 10,673 10,642 70,016 23,339 - 291,904 303,159 189,198 113,961 $42.35 $36.05 $25.00 $6.00 177,114 101,648 10,152 9,964 70,016 23,339 - 268,750 278,951 177,206 101,745 $3.50 $41.06 $35.37 $25.00 $6.00 170,851 104,189 9,990 10,090 70,016 23,339 - 265,019 274,940 170,826 104,114 $10,903,213 $1,890,426 $1,360,039 $48,326 $14,202,005 $3.50 $39.42 $31.35 $25.00 $6.00 177,191 97,297 10,844 10,727 70,016 23,339 - 264,743 274,604 177,276 97,328 2017 APR 262,878 272,579 163,112 109,467 176,792 107,367 11,086 11,123 63,009 33,928 - $42.13 $35.86 $25.00 $6.00 $3.50 $11,559,218 $1,890,426 $1,441,868 $30,926 $14,922,438 585 556 639 5 9 9 9 625 265 360 186 123 52 10 439 2017 MAR 280,257 290,822 189,723 101,098 163,188 109,526 11,982 12,118 63,009 33,928 - $41.61 $36.12 $25.00 $6.00 $3.50 $12,052,291 $1,890,426 $1,503,372 $9,008 $15,455,097 467 399 459 3 8 8 8 448 191 257 147 98 41 8 301 2017 FEB 344,171 357,673 226,737 130,936 189,741 101,013 13,539 13,472 63,009 33,928 - $42.02 $35.45 $25.00 $6.00 $3.50 $12,988,352 $1,890,426 $1,620,135 $6,553 $16,505,466 530 418 480 3 9 9 9 468 199 269 155 104 43 8 313 2017 JAN 291,616 302,906 191,765 111,141 249,523 130,846 14,068 36,764 63,009 33,928 - $43.08 $35.83 $25.00 $6.00 $3.50 $12,200,959 $1,778,800 $1,521,917 $4,800 $15,506,477 530 409 470 4 8 8 8 458 195 263 153 103 42 8 305 2016 DEC 325,187 337,671 213,859 123,813 211,004 111,162 8,738 27,997 63,009 33,928 - $43.42 $33.73 $25.00 $6.00 $3.50 $11,784,211 $1,778,800 $1,469,933 $13,760 $15,046,705 504 336 386 3 8 8 8 375 154 222 135 91 37 7 240 2016 NOV 235,327 123,823 9,746 31,224 63,009 33,928 - $43.58 $33.23 $25.00 $6.00 $3.50 $12,998,158 $1,778,800 $1,621,358 $57,531 $16,455,847 544 421 484 5 9 9 9 471 192 278 161 108 44 8 310 2016 OCT $42.46 $31.80 $25.00 $6.00 $3.50 $17,489,240 $1,778,800 $2,181,564 $61,292 $21,510,897 594 530 610 12 7 7 7 591 242 348 159 106 45 8 431 2016 SEP $3.50 $14,506,594 $1,778,800 $1,809,516 $124,702 $18,219,612 808 719 826 19 8 8 8 800 328 471 165 151 5 9 635 2016 AUG $15,677,445 $1,778,800 $1,955,565 $105,937 $19,517,748 600 557 640 14 8 8 8 618 254 364 100 94 1 5 519 2016 JUL 667 624 718 16 8 8 8 693 285 408 114 107 1 6 579 24 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION SHORT TERM COST OF SERVICE MODEL Energy Requirements (MWH) LOAD AT METER LOSS ADJUSTED LOAD (LAL) On Peak Off Peak BILATERAL CONTRACTS & MARKET PURCHASES On Peak - SP15 (EZGen) Off Peak - SP15 (EZGen) Market Purchases Market Sales RPS Category 1 RPS Category 2 RPS Category 3 GHG Free Energy Prices ($/MWH) BASE POWER PRICE On Peak - SP15 (EZGen) Off Peak - SP15 (EZGen) RPS CATEGORY 1 ADDER RPS CATEGORY 2 ADDER RPS CATEGORY 3 ADDER CARBON FREE ADDER Energy Costs ENERGY RPS & GHG FREE ADDERS CAISO CHARGES & CONGESTION COSTS NET ENERGY METERING PROGRAM TOTAL RA Obligations & Allocations (MW-Mo) PEAK MW (LAL) PEAK MW (CEC ADJ. FOR COINCIDENCE & DER) ZONAL TOTAL (CEC ADJ. PEAK X 115%) DR Allocation - System DR Allocation - San Diego IV RMR Allocation CAM Allocation San Diego IV Flex Cap Category 1 Flex Cap Category 2 Flex Cap Category 3 ZONAL OBLIGATION (TOTAL-RMR-CAM-DR) System LCR - San Diego IV Flexible Category 1 Category 2 Category 3 Generic 278,439 288,936 188,493 100,443 162,637 109,156 11,942 12,077 70,016 23,339 - 261,989 271,658 162,561 109,097 $45.20 $36.74 $25.00 $6.00 177,191 107,610 11,111 11,148 70,016 23,339 - 274,359 284,764 177,124 107,639 $3.50 $46.27 $38.44 $25.00 $6.00 190,009 114,409 10,719 10,688 70,314 23,438 - 293,146 304,448 190,002 114,446 $13,011,633 $1,898,467 $1,623,039 $9,329 $16,542,468 $3.50 $45.98 $37.98 $25.00 $6.00 177,867 102,080 10,196 10,006 70,314 23,438 - 269,893 280,137 177,960 102,177 2018 FEB 340,288 353,638 224,179 129,459 188,511 100,358 13,452 13,384 70,016 23,339 - $43.59 $36.47 $25.00 $6.00 $3.50 $14,210,277 $1,898,467 $1,772,554 $6,786 $17,888,085 532 419 482 3 98 98 90 9 380 209 172 66 15 43 8 315 2018 JAN 287,129 298,245 188,815 109,431 246,708 129,370 13,909 36,349 70,016 23,339 - $44.33 $37.01 $25.00 $6.00 $3.50 $12,991,986 $1,890,426 $1,620,588 $4,966 $16,507,966 532 410 472 4 94 94 85 8 375 204 170 68 18 43 8 306 2017 DEC 318,538 330,767 209,486 121,281 207,757 109,451 8,603 27,567 70,016 23,339 - $46.63 $36.73 $25.00 $6.00 $3.50 $12,146,686 $1,890,426 $1,515,147 $14,235 $15,566,495 505 337 387 3 89 89 81 8 295 161 134 59 13 39 7 236 2017 NOV 276,140 286,535 179,032 107,503 230,515 121,291 9,547 30,586 70,016 23,339 - $46.88 $36.15 $25.00 $6.00 $3.50 $13,304,665 $1,890,426 $1,659,591 $59,523 $16,914,205 543 420 483 5 99 99 90 9 380 200 179 76 21 46 9 304 2017 OCT 267,405 277,404 175,760 101,644 179,039 107,552 11,651 11,706 70,016 23,339 - $45.63 $34.62 $25.00 $6.00 $3.50 $18,645,239 $1,890,426 $2,325,760 $63,416 $22,924,841 591 527 606 12 7 7 7 587 252 335 165 109 47 9 422 2017 SEP 175,856 101,558 14,480 14,491 70,016 23,339 - $39.03 $27.18 $25.00 $6.00 $3.50 $15,413,516 $1,890,426 $1,922,643 $131,603 $19,358,188 799 711 818 18 8 8 8 791 339 452 171 156 6 9 620 2017 AUG $39.01 $29.64 $25.00 $6.00 $3.50 $16,564,000 $1,890,426 $2,066,152 $114,035 $20,634,614 591 548 631 14 7 7 7 609 262 348 98 92 1 5 511 2017 JUL $3.50 $10,799,767 $1,890,426 $1,347,136 $160,574 $14,197,904 654 612 703 16 8 8 8 680 292 388 114 107 2 6 565 2017 JUN $11,004,803 $1,890,426 $1,372,711 $124,338 $14,392,278 531 474 546 11 8 8 8 526 226 299 92 88 (0) 5 434 2017 MAY 624 600 690 10 8 8 8 672 286 386 144 132 4 8 528 25 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION SHORT TERM COST OF SERVICE MODEL Energy Requirements (MWH) LOAD AT METER LOSS ADJUSTED LOAD (LAL) On Peak Off Peak BILATERAL CONTRACTS & MARKET PURCHASES On Peak - SP15 (EZGen) Off Peak - SP15 (EZGen) Market Purchases Market Sales RPS Category 1 RPS Category 2 RPS Category 3 GHG Free Energy Prices ($/MWH) BASE POWER PRICE On Peak - SP15 (EZGen) Off Peak - SP15 (EZGen) RPS CATEGORY 1 ADDER RPS CATEGORY 2 ADDER RPS CATEGORY 3 ADDER CARBON FREE ADDER Energy Costs ENERGY RPS & GHG FREE ADDERS CAISO CHARGES & CONGESTION COSTS NET ENERGY METERING PROGRAM TOTAL RA Obligations & Allocations (MW-Mo) PEAK MW (LAL) PEAK MW (CEC ADJ. FOR COINCIDENCE & DER) ZONAL TOTAL (CEC ADJ. PEAK X 115%) DR Allocation - System DR Allocation - San Diego IV RMR Allocation CAM Allocation San Diego IV Flex Cap Category 1 Flex Cap Category 2 Flex Cap Category 3 ZONAL OBLIGATION (TOTAL-RMR-CAM-DR) System LCR - San Diego IV Flexible Category 1 Category 2 Category 3 Generic 288,351 299,514 189,618 109,896 247,757 129,920 13,968 36,504 70,314 23,438 - 341,735 355,142 225,133 130,010 $42.75 $35.56 $25.00 $6.00 189,313 100,785 13,509 13,441 70,314 23,438 - 279,624 290,165 189,295 100,870 $3.50 $42.77 $36.09 $25.00 $6.00 163,328 109,620 11,993 12,128 70,314 23,438 - 263,104 272,813 163,252 109,561 $12,775,355 $1,898,467 $1,593,566 $5,143 $16,272,530 $3.50 $43.29 $37.57 $25.00 $6.00 177,945 108,067 11,158 11,195 70,314 23,438 - 275,526 285,975 177,878 108,097 2018 DEC 319,893 332,174 210,377 121,797 208,641 109,917 8,640 27,684 70,314 23,438 - $48.23 $37.46 $25.00 $6.00 $3.50 $12,005,430 $1,898,467 $1,497,527 $14,742 $15,416,166 507 338 389 3 89 89 81 8 296 168 128 59 13 39 7 237 2018 NOV 277,315 287,754 179,794 107,960 231,495 121,807 9,587 30,716 70,314 23,438 - $49.46 $37.71 $25.00 $6.00 $3.50 $12,870,129 $1,898,467 $1,605,388 $61,652 $16,435,636 545 422 485 5 99 99 90 9 382 210 172 77 21 46 9 305 2018 OCT 268,543 278,584 176,508 102,076 179,801 108,009 11,700 11,756 70,314 23,438 - $50.84 $38.08 $25.00 $6.00 $3.50 $19,287,345 $1,898,467 $2,405,855 $65,685 $23,657,351 593 529 609 12 83 83 75 7 514 263 251 90 35 47 9 424 2018 SEP 265,869 275,772 178,030 97,742 176,604 101,990 14,542 14,552 70,314 23,438 - $46.93 $33.70 $25.00 $6.00 $3.50 $16,277,478 $1,898,467 $2,030,412 $136,310 $20,342,667 802 714 821 18 93 93 85 8 709 355 354 87 72 6 9 623 2018 AUG 266,147 276,109 171,552 104,557 177,945 97,711 10,890 10,773 70,314 23,438 - $43.90 $34.30 $25.00 $6.00 $3.50 $18,464,771 $1,898,467 $2,303,249 $118,114 $22,784,601 593 550 633 14 83 83 76 7 536 274 262 23 16 1 5 513 2018 JUL 171,577 104,632 10,032 10,133 70,314 23,438 - $41.50 $33.89 $25.00 $6.00 $3.50 $13,160,133 $1,898,467 $1,641,562 $166,318 $16,866,479 657 614 706 16 92 92 84 8 598 306 293 31 23 2 6 567 2018 JUN $43.17 $35.45 $25.00 $6.00 $3.50 $12,544,137 $1,898,467 $1,564,724 $128,785 $16,136,113 533 476 548 11 94 94 86 8 442 237 205 7 2 (0) 5 435 2018 MAY $3.50 $11,621,196 $1,898,467 $1,449,599 $50,050 $15,019,312 626 602 693 10 86 86 79 8 596 300 296 66 54 4 8 530 2018 APR $12,008,109 $1,898,467 $1,497,861 $32,029 $15,436,465 588 558 642 5 99 99 90 9 537 278 259 96 34 53 10 441 2018 MAR 469 401 461 3 89 89 81 8 369 199 169 66 17 41 8 302 26 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION SHORT TERM COST OF SERVICE MODEL RA Prices ($/kW-Mo) SYSTEM SAN DIEGO IV FLEX ADDER RA Cost SYSTEM SAN DIEGO IV FLEX ADDER TOTAL CAPACITY COST Customer Base & Retail Rates CUSTOMER ACCOUNTS Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total KWH BY CLASS Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total SDG&E CLASS AVERAGE WTD. AV. RATE Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total GROSS REVENUE BY CLASS Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total $0.54 $0.42 $0.00 $166,315 $180,939 $0 $347,254 $0.59 $0.44 $0.00 146 224 3,735 41,756 69 199,844 245,774 285,212,580 3,514,485 78,451,373 71,547,576 58,517,473 2,162,866 71,018,807 285,212,580 $244,906 $331,968 $0 $576,874 $0.84 $0.78 $0.00 $0.11 $0.13 $0.13 $0.13 $0.08 $0.08 $0.13 141 216 3,608 40,334 66 193,035 237,400 284,494,399 3,602,684 75,005,605 73,464,501 59,016,370 2,133,135 71,272,103 284,494,399 $362,831 $547,124 $0 $909,954 $1.63 $1.72 $0.00 2016 JUN $0.56 $0.38 $0.00 $0 $0 $0 $0 154 234 3,918 43,800 72 209,623 257,801 296,189,762 3,819,296 75,763,706 77,523,000 60,949,501 2,268,043 75,866,217 296,189,762 $0.11 $0.13 $0.13 $0.13 $0.08 $0.08 $0.13 $391,568 $9,955,979 $9,751,418 $7,492,631 $0 $179,020 $9,590,256 $37,360,871 2016 MAY $0.77 $0.59 $0.00 $0 $0 $0 $0 - $0.06 $0.07 $0.07 $0.07 $0.04 $0.04 $0.07 $381,981 $10,413,358 $9,496,972 $7,429,292 $0 $181,515 $9,556,173 $37,459,291 Program Launch 2016 APR $3.09 $4.78 $0.00 $0 $0 $0 $0 - $0.06 $0.07 $0.07 $0.07 $0.04 $0.04 $0.07 $214,545 $5,197,628 $5,318,321 $3,999,316 $0 $98,376 $5,276,097 $20,104,283 2016 MAR $3.00 $4.54 $0.00 $9,282,628 $13,041,814 $0 $22,324,442 - $0.06 $0.07 $0.07 $0.07 $0.04 $0.04 $0.07 $0 $0 $0 $0 $0 $0 $0 $0 2016 FEB $3.46 $5.17 $0.00 $8,609,251 $16,676,960 $0 $25,286,210 137 209 3,489 39,006 64 186,682 229,587 3,409,143,467 41,037,729 892,601,993 844,696,067 691,759,941 24,728,681 914,319,056 3,409,143,467 $0.06 $0.07 $0.07 $0.07 $0.04 $0.04 $0.07 $0 $0 $0 $0 $0 $0 $0 $0 2016 JAN $7,797,648 $16,794,646 $0 $24,592,294 137 209 3,489 39,006 64 186,682 229,587 3,394,705,030 40,863,926 888,821,637 841,118,602 688,830,192 24,623,950 910,446,723 3,394,705,030 $0.09 $0.11 $0.11 $0.10 $0.07 $0.07 $0.11 $0.11 $0 $0 $0 $0 $0 $0 $0 $0 2018 154 234 3,918 43,800 72 209,623 257,801 2,643,745,939 32,716,742 713,936,062 654,714,656 537,984,602 19,216,627 685,177,250 2,643,745,939 $0.09 $0.10 $0.10 $0.10 $0.07 $0.07 $0.11 $0.10 $3,715,262 $99,551,237 $91,908,479 $72,340,098 $0 $1,692,825 $99,789,139 $368,997,040 2017 $0.08 $0.10 $0.10 $0.10 $0.06 $0.06 $0.10 $0.11 $3,571,365 $95,695,500 $88,348,755 $69,538,281 $0 $1,627,260 $95,924,188 $354,705,350 2016 $3,021,712 $81,242,673 $73,276,528 $57,842,823 $0 $1,350,663 $77,742,236 $294,476,635 27 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION SHORT TERM COST OF SERVICE MODEL RA Prices ($/kW-Mo) SYSTEM SAN DIEGO IV FLEX ADDER RA Cost SYSTEM SAN DIEGO IV FLEX ADDER TOTAL CAPACITY COST Customer Base & Retail Rates CUSTOMER ACCOUNTS Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total KWH BY CLASS Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total SDG&E CLASS AVERAGE WTD. AV. RATE Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total GROSS REVENUE BY CLASS Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total $0.79 $0.61 $0.00 $114,012 $106,536 $0 $220,548 $0.57 $0.40 $0.00 137 209 3,489 39,006 64 186,682 229,587 265,019,446 3,075,667 65,522,673 67,281,628 53,880,431 2,108,502 73,150,544 265,019,446 $105,021 $112,249 $0 $217,270 $0.55 $0.44 $0.00 $0.06 $0.07 $0.07 $0.07 $0.04 $0.04 $0.07 137 209 3,489 39,006 64 186,682 229,587 264,742,575 3,413,792 67,719,689 69,292,195 54,478,344 2,027,239 67,811,317 264,742,575 $160,025 $161,582 $0 $321,607 $0.60 $0.45 $0.00 2017 APR $1.30 $1.03 $0.00 $154,152 $159,865 $0 $314,017 137 209 3,489 39,006 64 186,682 229,587 268,750,107 2,954,991 63,753,453 67,432,832 54,644,897 1,595,094 78,368,840 268,750,107 $0.06 $0.07 $0.07 $0.07 $0.04 $0.04 $0.07 $198,432 $4,807,275 $4,918,903 $3,698,959 $0 $90,987 $4,879,850 $18,594,406 2017 MAR $1.24 $0.92 $0.00 $199,971 $227,417 $0 $427,388 137 209 3,489 39,006 64 186,682 229,587 291,904,393 3,059,837 65,585,828 70,649,082 57,626,798 2,257,840 92,725,007 291,904,393 $0.06 $0.07 $0.07 $0.07 $0.04 $0.04 $0.07 $178,778 $4,651,313 $4,776,178 $3,658,362 $0 $94,635 $5,264,073 $18,623,338 2017 FEB $1.42 $1.19 $0.00 $239,021 $257,203 $0 $496,223 137 209 3,494 39,061 64 186,945 229,910 273,741,366 2,919,509 65,293,807 68,504,058 55,833,693 2,097,940 79,092,359 273,741,366 $0.06 $0.07 $0.07 $0.07 $0.04 $0.04 $0.07 $171,763 $4,525,720 $4,786,911 $3,710,267 $0 $71,592 $5,639,593 $18,905,846 2017 JAN $4.85 $7.44 $0.00 $345,011 $415,418 $0 $760,429 138 210 3,514 39,282 64 188,002 231,210 262,877,764 3,433,683 69,795,037 66,467,462 53,719,388 2,096,851 67,365,343 262,877,764 $0.06 $0.07 $0.07 $0.07 $0.04 $0.04 $0.07 $177,858 $4,655,796 $5,015,226 $3,912,732 $0 $101,337 $6,672,694 $20,535,643 2016 DEC $9.69 $16.80 $0.00 $1,591,556 $3,505,463 $0 $5,097,019 138 211 3,525 39,405 65 188,589 231,933 280,256,627 3,766,641 77,842,048 68,973,855 57,052,029 2,130,683 70,491,371 280,256,627 $0.06 $0.07 $0.07 $0.07 $0.04 $0.04 $0.07 $164,000 $4,479,360 $4,699,593 $3,663,633 $0 $90,997 $5,500,458 $18,598,042 2016 NOV $7.65 $12.76 $0.00 $2,465,350 $6,118,913 $0 $8,584,263 139 212 3,542 39,596 65 189,504 233,058 344,170,618 4,030,008 99,339,532 78,209,604 67,425,713 2,101,465 93,064,297 344,170,618 $0.11 $0.13 $0.13 $0.13 $0.08 $0.08 $0.13 $192,883 $4,788,159 $4,559,876 $3,524,899 $0 $90,950 $4,684,906 $17,841,673 2016 OCT $2,182,688 $5,210,202 $0 $7,392,889 139 213 3,557 39,761 65 190,294 234,029 291,616,056 3,622,027 80,644,746 71,654,571 59,820,927 2,102,924 73,770,862 291,616,056 $0.11 $0.13 $0.13 $0.13 $0.08 $0.08 $0.13 $409,388 $10,332,478 $9,155,346 $7,243,241 $0 $178,814 $9,485,202 $36,804,468 2016 SEP 140 214 3,575 39,967 66 191,277 235,239 325,186,767 4,008,410 91,800,209 78,370,030 65,649,508 2,122,720 83,235,890 325,186,767 $0.11 $0.13 $0.13 $0.13 $0.08 $0.08 $0.13 $438,012 $13,185,978 $10,381,266 $8,560,269 $0 $176,362 $12,522,577 $45,264,465 2016 AUG $0.11 $0.13 $0.13 $0.13 $0.08 $0.08 $0.13 $393,670 $10,704,498 $9,511,174 $7,594,777 $0 $176,484 $9,926,484 $38,307,088 2016 JUL $435,665 $12,185,235 $10,402,561 $8,334,765 $0 $178,146 $11,200,083 $42,736,454 28 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION SHORT TERM COST OF SERVICE MODEL RA Prices ($/kW-Mo) SYSTEM SAN DIEGO IV FLEX ADDER RA Cost SYSTEM SAN DIEGO IV FLEX ADDER TOTAL CAPACITY COST Customer Base & Retail Rates CUSTOMER ACCOUNTS Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total KWH BY CLASS Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total SDG&E CLASS AVERAGE WTD. AV. RATE Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total GROSS REVENUE BY CLASS Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total $1.28 $0.95 $0.00 $215,750 $141,633 $0 $357,383 $1.34 $1.06 $0.00 137 209 3,489 39,006 64 186,682 229,587 293,145,927 3,072,852 65,864,780 70,949,568 57,871,897 2,267,443 93,119,387 293,145,927 $166,209 $106,671 $0 $272,880 $0.81 $0.63 $0.00 $0.06 $0.07 $0.07 $0.07 $0.05 $0.05 $0.07 137 209 3,489 39,006 64 186,682 229,587 269,893,161 2,967,560 64,024,610 67,719,638 54,877,314 1,601,879 78,702,160 269,893,161 $122,929 $70,103 $0 $193,032 $0.59 $0.41 $0.00 2018 FEB $1.47 $1.23 $0.00 $256,431 $170,480 $0 $426,911 137 209 3,489 39,006 64 186,682 229,587 274,358,804 2,926,094 65,441,080 68,658,572 55,959,629 2,102,672 79,270,756 274,358,804 $0.06 $0.07 $0.07 $0.07 $0.05 $0.05 $0.07 $178,684 $4,708,069 $4,979,784 $3,859,760 $0 $74,476 $5,866,822 $19,667,595 2018 JAN $4.99 $7.66 $0.00 $368,989 $412,150 $0 $781,139 137 209 3,489 39,006 64 186,682 229,587 261,989,480 3,422,080 69,559,194 66,242,863 53,537,866 2,089,766 67,137,711 261,989,480 $0.06 $0.07 $0.07 $0.07 $0.04 $0.04 $0.07 $185,024 $4,843,386 $5,217,298 $4,070,382 $0 $105,420 $6,941,548 $21,363,059 2017 DEC $9.98 $17.31 $0.00 $1,693,947 $3,460,508 $0 $5,154,456 137 209 3,489 39,006 64 186,682 229,587 278,439,439 3,742,218 77,337,319 68,526,628 56,682,103 2,116,867 70,034,304 278,439,439 $0.06 $0.07 $0.07 $0.07 $0.04 $0.04 $0.07 $170,084 $4,645,521 $4,873,924 $3,799,535 $0 $94,373 $5,704,497 $19,287,933 2017 NOV $7.88 $13.15 $0.00 $2,613,064 $6,015,274 $0 $8,628,338 137 209 3,489 39,006 64 186,682 229,587 340,287,996 3,984,545 98,218,873 77,327,314 66,665,077 2,077,759 92,014,429 340,287,996 $0.11 $0.14 $0.14 $0.13 $0.09 $0.09 $0.14 $198,914 $4,937,857 $4,702,438 $3,635,102 $0 $93,794 $4,831,376 $18,399,481 2017 OCT $1.67 $1.77 $0.00 $2,301,573 $5,095,606 $0 $7,397,180 137 209 3,489 39,006 64 186,682 229,587 287,129,380 3,566,300 79,403,981 70,552,126 58,900,549 2,070,569 72,635,856 287,129,380 $0.11 $0.14 $0.14 $0.13 $0.09 $0.09 $0.14 $420,872 $10,622,319 $9,412,166 $7,446,425 $0 $183,830 $9,751,275 $37,836,887 2017 SEP $0.86 $0.81 $0.00 $379,110 $530,188 $0 $909,298 137 209 3,489 39,006 64 186,682 229,587 318,537,745 3,926,451 89,923,190 76,767,615 64,307,187 2,079,317 81,533,985 318,537,745 $0.11 $0.14 $0.14 $0.13 $0.09 $0.09 $0.14 $448,125 $13,490,411 $10,620,945 $8,757,905 $0 $180,434 $12,811,693 $46,309,513 2017 AUG $247,176 $310,887 $0 $558,063 137 209 3,489 39,006 64 186,682 229,587 276,140,424 3,496,894 72,803,119 71,307,269 57,283,397 2,070,497 69,179,249 276,140,424 $0.11 $0.14 $0.14 $0.13 $0.09 $0.09 $0.14 $401,087 $10,906,176 $9,690,369 $7,737,866 $0 $179,809 $10,113,504 $39,028,811 2017 JUL 137 209 3,489 39,006 64 186,682 229,587 267,405,241 3,295,057 73,553,237 67,080,480 54,863,916 2,027,827 66,584,725 267,405,241 $0.11 $0.14 $0.14 $0.13 $0.09 $0.09 $0.14 $441,591 $12,350,995 $10,544,070 $8,448,145 $0 $180,569 $11,352,441 $43,317,811 2017 JUN $0.11 $0.14 $0.14 $0.13 $0.09 $0.09 $0.14 $393,281 $9,999,544 $9,794,089 $7,525,418 $0 $179,803 $9,632,221 $37,524,356 2017 MAY $370,581 $10,102,573 $9,213,537 $7,207,566 $0 $176,098 $9,270,971 $36,341,326 29 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION SHORT TERM COST OF SERVICE MODEL RA Prices ($/kW-Mo) SYSTEM SAN DIEGO IV FLEX ADDER RA Cost SYSTEM SAN DIEGO IV FLEX ADDER TOTAL CAPACITY COST Customer Base & Retail Rates CUSTOMER ACCOUNTS Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total KWH BY CLASS Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total SDG&E CLASS AVERAGE WTD. AV. RATE Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total GROSS REVENUE BY CLASS Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total $5.14 $7.89 $0.00 $397,850 $317,145 $0 $714,995 $1.51 $1.27 $0.00 137 209 3,489 39,006 64 186,682 229,587 263,103,779 3,436,635 69,855,045 66,524,609 53,765,575 2,098,654 67,423,262 263,103,779 $276,488 $168,226 $0 $444,714 $1.32 $0.98 $0.00 $0.06 $0.07 $0.07 $0.07 $0.05 $0.05 $0.07 137 209 3,489 39,006 64 186,682 229,587 275,525,713 2,938,539 65,719,416 68,950,592 56,197,638 2,111,616 79,607,912 275,525,713 $232,625 $139,310 $0 $371,935 $1.38 $1.09 $0.00 2018 DEC $10.28 $17.83 $0.00 $1,826,440 $2,794,894 $0 $4,621,334 137 209 3,489 39,006 64 186,682 229,587 279,623,704 3,758,134 77,666,252 68,818,087 56,923,184 2,125,871 70,332,176 279,623,704 $0.06 $0.07 $0.07 $0.07 $0.05 $0.05 $0.07 $176,937 $4,832,697 $5,070,303 $3,952,624 $0 $98,175 $5,934,341 $20,065,077 2018 NOV $8.12 $13.54 $0.00 $2,817,446 $4,666,988 $0 $7,484,434 137 209 3,489 39,006 64 186,682 229,587 341,735,317 4,001,492 98,636,620 77,656,204 66,948,618 2,086,596 92,405,787 341,735,317 $0.12 $0.14 $0.14 $0.14 $0.09 $0.09 $0.14 $206,928 $5,136,812 $4,891,907 $3,781,567 $0 $97,573 $5,026,041 $19,140,828 2018 OCT $1.72 $1.82 $0.00 $2,481,592 $3,962,143 $0 $6,443,735 137 209 3,489 39,006 64 186,682 229,587 288,350,605 3,581,468 79,741,704 70,852,199 59,151,066 2,079,375 72,944,792 288,350,605 $0.12 $0.14 $0.14 $0.14 $0.09 $0.09 $0.14 $437,829 $11,050,311 $9,791,399 $7,746,454 $0 $191,237 $10,144,171 $39,361,400 2018 SEP $0.89 $0.83 $0.00 $408,762 $374,374 $0 $783,136 137 209 3,489 39,006 64 186,682 229,587 319,892,557 3,943,151 90,305,654 77,094,125 64,580,700 2,088,161 81,880,767 319,892,557 $0.12 $0.14 $0.14 $0.14 $0.09 $0.09 $0.14 $466,181 $14,033,963 $11,048,881 $9,110,776 $0 $187,704 $13,327,898 $48,175,403 2018 AUG $0.62 $0.46 $0.00 $266,509 $245,956 $0 $512,465 137 209 3,489 39,006 64 186,682 229,587 277,314,911 3,511,767 73,112,767 71,610,554 57,527,036 2,079,304 69,473,483 277,314,911 $0.12 $0.14 $0.14 $0.14 $0.09 $0.09 $0.14 $417,247 $11,345,605 $10,080,811 $8,049,638 $0 $187,054 $10,520,995 $40,601,349 2018 JUL $0.57 $0.45 $0.00 $172,542 $120,054 $0 $292,596 137 209 3,489 39,006 64 186,682 229,587 268,542,575 3,309,072 73,866,075 67,365,788 55,097,264 2,036,451 66,867,925 268,542,575 $0.12 $0.14 $0.14 $0.14 $0.09 $0.09 $0.14 $459,384 $12,848,637 $10,968,909 $8,788,535 $0 $187,844 $11,809,851 $45,063,161 2018 JUN $113,236 $75,949 $0 $189,185 137 209 3,489 39,006 64 186,682 229,587 265,868,585 3,428,311 68,007,716 69,586,910 54,710,053 2,035,862 68,099,733 265,868,585 $0.12 $0.14 $0.14 $0.14 $0.09 $0.09 $0.14 $409,127 $10,402,443 $10,188,709 $7,828,630 $0 $187,048 $10,020,320 $39,036,277 2018 MAY 137 209 3,489 39,006 64 186,682 229,587 266,146,632 3,088,748 65,801,356 67,567,792 54,109,596 2,117,470 73,461,670 266,146,632 $0.06 $0.07 $0.07 $0.07 $0.05 $0.05 $0.07 $385,513 $10,509,624 $9,584,766 $7,497,972 $0 $183,193 $9,644,514 $37,805,581 2018 APR $0.06 $0.07 $0.07 $0.07 $0.05 $0.05 $0.07 $206,427 $5,000,968 $5,117,094 $3,847,996 $0 $94,653 $5,076,468 $19,343,607 2018 MAR $185,981 $4,838,722 $4,968,618 $3,805,763 $0 $98,448 $5,476,171 $19,373,704 30 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION $151,086 $4,062,134 $3,663,826 $2,892,141 $0 $67,533 $3,887,112 $14,723,832 $192,343 $5,652,490 $5,125,735 $5,503,017 $0 $195,414 $5,588,279 $22,257,278 2016 $3,104,561 $82,533,887 $76,004,064 $57,620,410 $0 $1,244,154 $82,547,332 $303,054,408 $178,568 $4,784,775 $4,417,438 $3,476,914 $0 $81,363 $4,796,209 $17,735,268 $288,236 $8,376,838 $7,927,254 $8,440,957 $0 $301,743 $8,580,647 $33,915,675 2017 $234,681,466 $794,166 $4,132,566 $315,109,053 $1,567,707 $313,541,346 $3,240,037 $86,161,208 $79,352,085 $60,246,235 $0 $1,305,158 $86,182,540 $316,487,262 $185,763 $4,977,562 $4,595,424 $3,617,005 $0 $84,641 $4,989,457 $18,449,852 $289,462 $8,412,467 $7,960,970 $8,476,858 $0 $303,026 $8,617,143 $34,059,926 $50,000,000 $375,000 $87,500 $218,750 $68,750 $250,000 $0 $0 $0 $0 $1,000,000 -$1,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$1,208,333 $0 $208,333 $208,333 -$208,333 $0 $375,000 $87,500 $218,750 $68,750 $250,000 $0 $0 $0 $0 $1,000,000 -$1,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$1,671,956 $0 $208,333 $208,333 -$208,333 $0 $375,000 $87,500 $218,750 $68,750 $250,000 $463,623 $0 $461,464 $2,159 $1,463,623 -$1,463,623 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$1,797,024 $0 $208,333 $208,333 -$208,333 $0 $375,000 $87,500 $218,750 $68,750 $250,000 $201,989 $64,450 $21,528 $116,010 $1,588,691 -$1,588,691 $0 $0 $386,702 $0 $0 $0 $190,297 $4,579,384 $4,685,721 $3,424,511 $0 $79,508 $4,599,580 $17,559,002 $10,727 $259,881 $265,916 $199,966 $0 $4,919 $263,805 $1,005,214 $13,520 $358,362 $366,684 $374,839 $0 $13,948 $412,712 $1,540,067 -$1,764,026 $0 $208,333 $208,333 -$208,333 $0 $375,000 $87,500 $218,750 $68,750 $250,000 $187,031 $61,444 $14,989 $110,598 $1,555,692 -$1,555,692 $0 $0 $368,661 $0 $0 $0 $350,441 $9,521,615 $8,683,704 $6,697,945 $0 $159,137 $8,692,022 $34,104,864 $19,099 $520,668 $474,849 $371,465 $0 $9,076 $477,809 $1,872,965 $12,441 $371,075 $338,420 $359,882 $0 $13,302 $386,342 $1,481,463 $3,605,834 $0 $208,333 $208,333 -$208,333 $0 $375,000 $87,500 $218,750 $68,750 $250,000 $170,048 $59,350 $3,868 $106,830 $16,828,697 $3,814,168 $15,240,591 $61,957 $356,100 $20,746,079 -$103,214 $20,642,864 $359,236 $9,103,403 $8,916,360 $6,755,049 $0 $156,950 $8,723,023 $34,014,021 $19,578 $497,799 $487,571 $374,632 $0 $8,951 $479,513 $1,868,044 $12,754 $354,777 $347,487 $362,951 $0 $13,119 $387,720 $1,478,807 2016 JUN $2,678,283 $71,528,050 $64,486,967 $49,447,664 $0 $1,087,716 $68,266,845 $257,495,525 $301,911,382 $1,502,047 $300,409,336 $4,820,513 $1,124,786 $2,811,966 $883,761 $3,213,675 $1,928,531 $688,761 $0 $1,239,770 $254,391,429 $59,149,917 $0 $208,333 $208,333 $49,791,667 2016 MAY $223,340,953 $1,111,149 $222,229,804 $224,718,884 $766,776 $4,132,566 $0 $48,791,667 Program Launch 2016 APR $142,008,621 $643,554 $3,204,531 $4,657,500 $1,086,750 $2,716,875 $853,875 $3,105,000 $1,928,531 $688,761 $0 $1,239,770 $243,966,757 $56,442,579 $0 $0 $0 $0 2016 MAR $4,500,000 $1,050,000 $2,625,000 $825,000 $3,000,000 $2,009,574 $534,089 $511,967 $963,518 $159,866,279 $62,363,525 $0 $59,149,917 2016 FEB $50,000,000 $43,921,746 $12,500,000 $20,833 $12,520,833 -$12,520,833 2016 JAN $37,500,000 $2,031,250 $39,531,250 $10,468,750 2018 $72,832,275 SHORT TERM COST OF SERVICE MODEL FINANCING Deposit from Financing Debt Service Principal Interest Total Debt Service CASH FLOWS NON-CAP FINANCING ACTIVITIES PCIA CHARGES Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total RATE RELIEF Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total CCA REVENUE BY CLASS (NET OF PCIA & RATE RELIEF) Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total Cash Flow Analysis REVENUE FROM OPERATIONS Revenue - Electricity Less Uncollectible Accounts Total Operational Revenue COST OF OPERATIONS Wholesale Commodity Net Energy Metering Program Retail Services (EDI/ Billing/ Customer Care) Services Personnel Outreach & Communications Other Professional Services General & Administration Programs SDG&E Fees Monthly Billing Fees CCASR Miscellaneous Total Operational Expenses CASH FLOWS FROM OPERATING ACTIVITIES NET CASH FLOW 31 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION SHORT TERM COST OF SERVICE MODEL PCIA CHARGES Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total RATE RELIEF Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total CCA REVENUE BY CLASS (NET OF PCIA & RATE RELIEF) Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total Cash Flow Analysis REVENUE FROM OPERATIONS Revenue - Electricity Less Uncollectible Accounts Total Operational Revenue COST OF OPERATIONS Wholesale Commodity Net Energy Metering Program Retail Services (EDI/ Billing/ Customer Care) Services Personnel Outreach & Communications Other Professional Services General & Administration Programs SDG&E Fees Monthly Billing Fees CCASR Miscellaneous Total Operational Expenses CASH FLOWS FROM OPERATING ACTIVITIES FINANCING Deposit from Financing Debt Service Principal Interest Total Debt Service CASH FLOWS NON-CAP FINANCING ACTIVITIES NET CASH FLOW $25,548 $760,049 $675,320 $733,048 $0 $25,769 $695,265 $2,915,000 $21,901 $659,299 $519,063 $428,013 $0 $8,818 $626,129 $2,263,223 $28,426 $936,241 $737,099 $826,238 $0 $25,751 $877,099 $3,430,854 $362,350 $9,082,220 $8,047,523 $6,181,961 $0 $143,764 $8,346,585 $32,164,403 $20,469 $516,624 $457,767 $362,162 $0 $8,941 $474,260 $1,840,223 $26,568 $733,635 $650,055 $699,118 $0 $26,109 $664,357 $2,799,842 $36,468,322 -$181,434 $36,286,888 $159,019 $3,890,956 $3,705,450 $2,690,374 $0 $60,708 $3,815,765 $14,322,273 $9,644 $239,408 $227,994 $176,245 $0 $4,548 $234,245 $892,084 $24,220 $657,794 $626,433 $658,280 $0 $25,695 $634,895 $2,627,317 $17,158,745 $43,976 $344,865 $27,342,956 -$136,035 $27,206,921 $135,207 $3,640,020 $3,818,986 $2,796,263 $0 $60,739 $4,480,017 $14,931,233 $8,200 $223,968 $234,980 $183,182 $0 $4,550 $275,023 $929,902 $20,593 $615,372 $645,627 $684,189 $0 $25,708 $745,418 $2,736,907 $0 $388,125 $90,563 $226,406 $71,156 $258,750 $160,711 $57,397 $0 $103,314 $17,085,405 -$510,500 $15,529,168 $16,146 $344,381 $16,657,779 -$82,875 $16,574,905 $147,382 $3,804,883 $4,098,621 $3,010,934 $0 $68,603 $5,465,158 $16,595,580 $8,893 $232,790 $250,761 $195,637 $0 $5,067 $333,635 $1,026,782 $21,583 $618,124 $665,843 $706,161 $0 $27,668 $873,901 $2,913,280 -$7,161,797 $5,000,000 $0 $5,000,000 -$5,000,000 $0 $388,125 $90,563 $226,406 $71,156 $258,750 $160,711 $57,397 $0 $103,314 $17,475,592 -$2,161,797 $15,929,065 $6,436 $344,381 $15,390,364 -$76,569 $15,313,795 $142,332 $3,698,580 $3,912,034 $2,855,133 $0 $48,466 $4,619,014 $15,275,558 $8,588 $226,286 $239,346 $185,513 $0 $3,580 $281,980 $945,292 $20,843 $600,854 $635,531 $669,621 $0 $19,546 $738,599 $2,684,996 -$2,466,565 $0 $0 $0 $0 $0 $388,125 $90,563 $226,406 $71,156 $258,750 $160,711 $57,397 $0 $103,314 $18,360,150 -$2,466,565 $16,812,930 $7,128 $344,381 $15,973,052 -$79,468 $15,893,584 $148,145 $3,801,219 $3,903,262 $2,815,190 $0 $64,065 $4,311,451 $15,043,332 $8,939 $232,566 $238,809 $182,918 $0 $4,732 $263,204 $931,167 $21,694 $617,529 $634,106 $660,253 $0 $25,838 $689,419 $2,648,839 -$1,939,606 $0 $0 $0 $0 $0 $388,125 $90,563 $226,406 $71,156 $258,750 $160,711 $57,397 $0 $103,314 $17,222,456 -$1,939,606 $15,666,638 $15,727 $344,381 $15,359,265 -$76,414 $15,282,850 $164,431 $3,928,676 $4,019,903 $2,846,431 $0 $61,596 $3,996,760 $15,017,796 $9,922 $240,364 $245,945 $184,948 $0 $4,549 $243,993 $929,720 $24,079 $638,235 $653,055 $667,580 $0 $24,842 $639,098 $2,646,890 2017 APR $19,683 $535,225 $475,559 $379,739 $0 $8,824 $496,324 $1,915,354 $387,686 $11,590,438 $9,125,104 $7,306,018 $0 $141,792 $11,019,349 $39,570,388 $35,890,911 -$178,562 $35,712,349 $26,546,623 $67,698 $346,815 $375,000 $87,500 $218,750 $68,750 $250,000 $161,515 $57,478 $578 $103,460 $18,709,101 $8,497,821 $7,500,000 $20,833 $7,520,833 -$7,520,833 2017 MAR $28,274 $865,185 $738,611 $804,472 $0 $26,012 $784,470 $3,247,023 $348,438 $9,409,224 $8,360,296 $6,481,989 $0 $141,891 $8,734,895 $33,476,734 $35,710,805 -$177,666 $35,533,139 $26,679,174 $102,159 $347,900 $375,000 $87,500 $218,750 $68,750 $250,000 $164,174 $57,803 $2,327 $104,045 $28,125,310 $8,161,578 $0 -$8,031,334 2017 FEB $21,783 $609,262 $520,128 $416,738 $0 $8,907 $560,004 $2,136,823 $35,092,392 -$174,589 $34,917,803 $26,804,700 $117,372 $349,587 $375,000 $87,500 $218,750 $68,750 $250,000 $163,647 $57,983 $1,294 $104,370 $28,292,880 $7,419,469 $0 $945,737 $7,500,000 $52,083 $7,552,083 -$7,552,083 2017 JAN $385,608 $10,710,788 $9,143,822 $7,113,554 $0 $143,226 $9,855,609 $37,352,608 $14,623,399 $132,337 $351,044 $375,000 $87,500 $218,750 $68,750 $250,000 $165,154 $58,265 $2,014 $104,876 $28,436,814 $7,096,326 $0 $578,245 $7,500,000 $83,333 $7,583,333 -$7,583,333 2016 DEC $32,089,488 -$159,649 $31,929,839 $375,000 $87,500 $218,750 $68,750 $250,000 $165,558 $58,507 $1,738 $105,313 $16,272,338 $18,645,466 $0 -$195,114 $7,500,000 $114,583 $7,614,583 -$7,614,583 2016 NOV $14,955,390 $118,054 $352,859 $0 -$549,508 $7,500,000 $145,833 $7,645,833 -$7,645,833 2016 OCT $375,000 $87,500 $218,750 $68,750 $250,000 $166,833 $58,810 $2,166 $105,858 $16,593,135 $15,336,704 $7,500,000 $177,083 $7,677,083 -$7,677,083 2016 SEP $0 $10,968,382 2016 AUG $0 $208,333 $208,333 -$208,333 2016 JUL $15,128,371 32 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION SHORT TERM COST OF SERVICE MODEL PCIA CHARGES Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total RATE RELIEF Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total CCA REVENUE BY CLASS (NET OF PCIA & RATE RELIEF) Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total Cash Flow Analysis REVENUE FROM OPERATIONS Revenue - Electricity Less Uncollectible Accounts Total Operational Revenue COST OF OPERATIONS Wholesale Commodity Net Energy Metering Program Retail Services (EDI/ Billing/ Customer Care) Services Personnel Outreach & Communications Other Professional Services General & Administration Programs SDG&E Fees Monthly Billing Fees CCASR Miscellaneous Total Operational Expenses CASH FLOWS FROM OPERATING ACTIVITIES FINANCING Deposit from Financing Debt Service Principal Interest Total Debt Service CASH FLOWS NON-CAP FINANCING ACTIVITIES NET CASH FLOW $24,666 $686,144 $672,046 $701,953 $0 $25,372 $651,991 $2,762,172 $391,816 $10,885,950 $9,293,358 $7,237,715 $0 $146,060 $10,016,389 $37,971,289 $22,080 $617,550 $527,203 $422,407 $0 $9,028 $567,622 $2,165,891 $27,695 $847,495 $723,508 $788,023 $0 $25,480 $768,430 $3,180,632 $14,946,628 $141,333 $344,381 $34,388,202 -$171,086 $34,217,116 $355,877 $9,612,512 $8,540,921 $6,629,202 $0 $145,446 $8,923,261 $34,207,220 $20,054 $545,309 $484,518 $386,893 $0 $8,990 $505,675 $1,951,441 $25,155 $748,355 $664,930 $721,770 $0 $25,373 $684,568 $2,870,151 $0 $388,125 $90,563 $226,406 $71,156 $258,750 $160,711 $57,397 $0 $103,314 $29,583,091 $6,392,674 $27,917,758 $125,241 $344,381 $36,155,644 -$179,879 $35,975,765 $397,614 $11,890,211 $9,361,114 $7,503,093 $0 $145,951 $11,303,904 $40,601,887 $22,406 $674,521 $531,047 $437,895 $0 $9,022 $640,585 $2,315,476 $28,105 $925,679 $728,783 $816,917 $0 $25,461 $867,204 $3,392,150 $7,018,986 $0 $0 $0 $0 $0 $388,125 $90,563 $226,406 $71,156 $258,750 $160,711 $57,397 $0 $103,314 $29,502,690 $7,018,986 $27,854,924 $107,675 $344,381 $36,704,284 -$182,608 $36,521,676 $373,432 $9,362,325 $8,295,718 $6,379,518 $0 $148,698 $8,603,662 $33,163,354 $21,044 $531,116 $470,608 $372,321 $0 $9,191 $487,564 $1,891,844 $26,396 $728,878 $645,840 $694,585 $0 $25,940 $660,049 $2,781,688 $7,640,600 $0 $0 $0 $0 $0 $388,125 $90,563 $226,406 $71,156 $258,750 $160,711 $57,397 $0 $103,314 $29,626,325 $7,640,600 $28,015,881 $70,353 $344,381 $37,453,260 -$186,335 $37,266,926 $164,830 $4,035,393 $3,843,000 $2,797,292 $0 $63,496 $3,957,058 $14,861,068 $9,946 $246,893 $235,122 $181,755 $0 $4,690 $241,569 $919,974 $24,138 $655,571 $624,316 $656,055 $0 $25,608 $632,750 $2,618,439 $8,836,840 $0 $0 $0 $0 $0 $388,125 $90,563 $226,406 $71,156 $258,750 $160,711 $57,397 $0 $103,314 $19,221,410 $8,836,840 $17,635,821 $45,498 $344,381 $28,198,542 -$140,291 $28,058,250 $140,940 $3,796,485 $3,983,144 $2,923,826 $0 $63,888 $4,672,172 $15,580,456 $8,504 $232,276 $243,696 $189,977 $0 $4,719 $285,225 $964,397 $20,639 $616,760 $647,083 $685,732 $0 $25,766 $747,100 $2,743,080 -$371,082 $0 $0 $0 $0 $0 $401,709 $93,732 $234,330 $73,647 $267,806 $160,711 $57,397 $0 $103,314 $17,572,191 -$371,082 $15,979,171 $16,704 $344,381 $17,287,114 -$86,006 $17,201,109 $154,098 $3,980,464 $4,287,758 $3,157,698 $0 $72,364 $5,716,853 $17,369,235 $9,251 $242,169 $260,865 $203,519 $0 $5,271 $347,077 $1,068,153 $21,675 $620,753 $668,675 $709,165 $0 $27,785 $877,618 $2,925,671 -$2,457,155 $0 $0 $0 $0 $0 $401,709 $93,732 $234,330 $73,647 $267,806 $160,711 $57,397 $0 $103,314 $18,443,361 -$2,457,155 $16,860,384 $6,661 $344,381 $16,066,137 -$79,931 $15,986,206 $148,818 $3,869,256 $4,092,560 $2,994,303 $0 $51,123 $4,831,740 $15,987,800 $8,934 $235,403 $248,989 $192,988 $0 $3,724 $293,341 $983,380 $20,932 $603,410 $638,234 $672,469 $0 $19,629 $741,741 $2,696,415 2018 FEB $19,664 $499,977 $489,704 $376,271 $0 $8,990 $481,611 $1,876,218 $30,161,395 -$150,057 $30,011,339 $388,125 $90,563 $226,406 $71,156 $258,750 $160,711 $57,397 $0 $103,314 $16,628,053 $17,589,063 $0 $0 $0 $0 2018 JAN $23,242 $693,214 $632,210 $672,305 $0 $24,849 $627,538 $2,673,358 $348,951 $8,813,423 $8,632,338 $6,447,193 $0 $145,441 $8,498,619 $32,885,966 $14,826,003 $126,812 $344,381 $0 $6,392,674 2017 DEC $18,529 $505,129 $460,677 $360,378 $0 $8,805 $463,549 $1,817,066 $20,406,944 -$101,527 $20,305,417 $388,125 $90,563 $226,406 $71,156 $258,750 $160,711 $57,397 $0 $103,314 $16,492,907 $13,518,432 $0 $0 $0 $0 2017 NOV $328,810 $8,904,231 $8,120,650 $6,174,883 $0 $142,444 $8,179,884 $31,850,902 $14,475,286 $70,562 $344,381 $0 $17,589,063 2017 OCT $15,062,651 -$74,939 $14,987,713 $388,125 $90,563 $226,406 $71,156 $258,750 $160,711 $57,397 $0 $103,314 $16,085,940 $4,219,477 $0 $0 $0 $0 2017 SEP $15,108,782 $33,864 $344,381 $0 $13,518,432 2017 AUG $388,125 $90,563 $226,406 $71,156 $258,750 $160,711 $57,397 $0 $103,314 $16,682,738 -$1,695,025 $0 $0 $0 $0 2017 JUL $0 $4,219,477 2017 JUN $0 $0 $0 $0 2017 MAY -$1,695,025 33 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION SHORT TERM COST OF SERVICE MODEL PCIA CHARGES Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total RATE RELIEF Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total CCA REVENUE BY CLASS (NET OF PCIA & RATE RELIEF) Agricultural Commercial/Industrial - Large Commercial/Industrial - Medium Commercial/Industrial - Small Outdoor Lighting - Residential Outdoor Lighting - Small Commercial Residential Total Cash Flow Analysis REVENUE FROM OPERATIONS Revenue - Electricity Less Uncollectible Accounts Total Operational Revenue COST OF OPERATIONS Wholesale Commodity Net Energy Metering Program Retail Services (EDI/ Billing/ Customer Care) Services Personnel Outreach & Communications Other Professional Services General & Administration Programs SDG&E Fees Monthly Billing Fees CCASR Miscellaneous Total Operational Expenses CASH FLOWS FROM OPERATING ACTIVITIES FINANCING Deposit from Financing Debt Service Principal Interest Total Debt Service CASH FLOWS NON-CAP FINANCING ACTIVITIES NET CASH FLOW $24,182 $640,949 $655,833 $670,419 $0 $24,948 $641,817 $2,658,147 $342,896 $9,287,980 $8,470,629 $6,447,909 $0 $149,078 $8,532,081 $33,230,573 $19,276 $525,481 $479,238 $374,899 $0 $9,160 $482,226 $1,890,279 $23,341 $696,162 $634,899 $675,164 $0 $24,955 $630,207 $2,684,729 $15,261,858 $73,083 $344,381 $21,324,876 -$106,094 $21,218,782 $363,900 $9,193,258 $9,004,369 $6,732,259 $0 $152,215 $8,864,540 $34,310,542 $20,456 $520,122 $509,435 $391,431 $0 $9,352 $501,016 $1,951,814 $24,770 $689,063 $674,905 $704,939 $0 $25,480 $654,764 $2,773,920 $0 $401,709 $93,732 $234,330 $73,647 $267,806 $160,711 $57,397 $0 $103,314 $18,227,456 $13,089,858 $16,519,793 $131,347 $344,381 $31,473,901 -$156,587 $31,317,315 $408,602 $11,355,106 $9,693,878 $7,557,734 $0 $152,864 $10,447,660 $39,615,843 $22,969 $642,432 $548,445 $439,427 $0 $9,392 $590,493 $2,253,158 $27,813 $851,100 $726,586 $791,375 $0 $25,588 $771,698 $3,194,160 $16,493,246 $0 $0 $0 $0 $0 $401,709 $93,732 $234,330 $73,647 $267,806 $160,711 $57,397 $0 $103,314 $19,206,003 $16,493,246 $17,483,298 $146,389 $344,381 $35,877,745 -$178,496 $35,699,249 $371,123 $10,026,786 $8,909,013 $6,922,316 $0 $152,221 $9,307,465 $35,688,924 $20,862 $567,280 $504,041 $402,482 $0 $9,353 $526,050 $2,030,067 $25,262 $751,538 $667,758 $724,840 $0 $25,481 $687,480 $2,882,358 $6,717,720 $0 $0 $0 $0 $0 $401,709 $93,732 $234,330 $73,647 $267,806 $160,711 $57,397 $0 $103,314 $30,816,260 $6,717,720 $29,110,222 $129,721 $344,381 $37,721,650 -$187,670 $37,533,980 $414,647 $12,402,648 $9,764,554 $7,834,846 $0 $152,749 $11,790,611 $42,360,055 $23,309 $701,698 $552,444 $455,539 $0 $9,385 $666,395 $2,408,770 $28,225 $929,616 $731,883 $820,391 $0 $25,569 $870,893 $3,406,577 $8,724,807 $0 $0 $0 $0 $0 $401,709 $93,732 $234,330 $73,647 $267,806 $160,711 $57,397 $0 $103,314 $29,378,634 $8,724,807 $27,690,791 $111,526 $344,381 $38,293,959 -$190,517 $38,103,441 $389,430 $9,765,817 $8,653,242 $6,661,592 $0 $155,624 $8,974,106 $34,599,811 $21,891 $552,516 $489,570 $387,323 $0 $9,562 $507,209 $1,968,070 $26,508 $731,978 $648,587 $697,539 $0 $26,051 $662,857 $2,793,519 $9,018,674 $0 $0 $0 $0 $0 $401,709 $93,732 $234,330 $73,647 $267,806 $160,711 $57,397 $0 $103,314 $29,862,186 $9,018,674 $28,213,001 $72,869 $344,381 $39,075,264 -$194,404 $38,880,860 $172,341 $4,221,611 $4,020,340 $2,933,643 $0 $66,977 $4,139,298 $15,554,210 $10,346 $256,841 $244,595 $189,078 $0 $4,879 $251,302 $957,041 $24,240 $658,360 $626,972 $658,846 $0 $25,717 $635,441 $2,629,576 $10,576,846 $0 $0 $0 $0 $0 $401,709 $93,732 $234,330 $73,647 $267,806 $160,711 $57,397 $0 $103,314 $18,712,420 $10,576,846 $17,088,979 $47,125 $344,381 $29,435,712 -$146,446 $29,289,266 $147,363 $3,971,679 $4,166,952 $3,066,345 $0 $67,391 $4,887,346 $16,307,076 $8,847 $241,635 $253,515 $197,631 $0 $4,909 $296,717 $1,003,254 $20,727 $619,383 $649,836 $688,648 $0 $25,876 $750,277 $2,754,747 2018 DEC $10,321 $250,048 $255,855 $192,400 $0 $4,733 $253,823 $967,180 $15,765,143 -$78,434 $15,686,709 $401,709 $93,732 $234,330 $73,647 $267,806 $160,711 $57,397 $0 $103,314 $16,911,257 $4,307,526 $0 $0 $0 $0 2018 NOV $21,787 $620,155 $636,803 $663,061 $0 $25,948 $692,351 $2,660,105 $171,924 $4,109,970 $4,205,407 $2,985,177 $0 $64,973 $4,180,828 $15,718,279 $15,593,622 $35,072 $344,381 $0 $13,089,858 2018 OCT $9,299 $241,936 $248,431 $190,288 $0 $4,922 $273,809 $968,685 $16,075,447 -$79,977 $15,995,469 $401,709 $93,732 $234,330 $73,647 $267,806 $160,711 $57,397 $0 $103,314 $17,205,010 -$1,518,300 $0 $0 $0 $0 2018 SEP $154,895 $3,976,631 $4,083,384 $2,952,414 $0 $67,578 $4,510,012 $15,744,914 $16,726,171 $16,288 $344,381 $0 $4,307,526 2018 AUG $16,712,105 -$83,145 $16,628,960 $401,709 $93,732 $234,330 $73,647 $267,806 $160,711 $57,397 $0 $103,314 $18,318,775 -$2,323,306 $0 $0 $0 $0 2018 JUL $18,154,178 $7,382 $344,381 $0 -$1,518,300 2018 JUN $401,709 $93,732 $234,330 $73,647 $267,806 $160,711 $57,397 $0 $103,314 $19,737,876 -$3,108,917 $0 $0 $0 $0 2018 MAY $0 -$2,323,306 2018 APR $0 $0 $0 $0 2018 MAR -$3,108,917 34 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) 2016 FEB $45,911,377 $50,000,000 -$4,088,623 2016 MAR $44,114,353 $50,000,000 -$5,885,647 $42,350,328 $50,000,000 -$7,649,672 2016 MAY $45,956,162 $50,000,000 -$4,043,838 2016 JUN CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION 2016 JAN $47,583,333 $50,000,000 -$2,416,667 Program Launch 2016 APR $48,791,667 $50,000,000 -$1,208,333 $3,814,168 18 2018 $175,903,938 $0 $175,903,938 -$1,555,692 (7) 2017 $116,754,021 $0 $116,754,021 -$1,588,691 (8) 2016 $72,832,275 $12,500,000 $60,332,275 -$1,463,623 (7) SHORT TERM COST OF SERVICE MODEL FUND BALANCE Less Outstanding Debt Net Worth (Simplified) -$1,000,000 (5) $18,726,574 $49,000,000 235 $18,726,574 $59,149,917 $18,726,574 $43,942,579 $0 $74,863,525 - $0 2,109 $0 37 $0.069 $0.075 $0.093 $0.010 $0.005 $18,726,574 $17,202,387 -$15,302,549 -$1,899,838 $3,440,477 $22,167,051 $0.067 $0.073 $0.089 $0.010 $0.005 $18,726,574 $0 $0 $0 $0 $18,726,574 $865,385 $1,899,838 -$1,734,482 -$165,357 $865,385 $0.066 $0.074 $0.097 $0.008 $0.006 Summary & Financial Metrics FINANCIAL METRICS EBITDA Debt Service Capacity Ratio Debt Service Capacity Ratio - 12 Months SUMMARY METRICS ($/KWH) Cost Of Energy Cost Of Energy Sold Average Retail Rate PCIA Charges (Reimbursed) Customer Savings Cash Flow by Account SUPPLIER RESERVE AMOUNT $0 $0 $0 $18,726,574 $0 $18,726,574 $865,385 $0 -$1,764,026 $1,764,026 $865,385 $3,199,922 $0 $18,726,574 $600,000 $231,874 $19,558,448 $0 $0 $0 $0 $0 $0 $865,385 -$18,726,574 -$1,797,024 $20,523,598 $865,385 $4,963,947 $0 $165,357 $3,365,279 $18,726,574 $600,000 $231,874 $19,558,448 $0 $0 $0 $0 $0 $0 $865,385 $0 -$1,671,956 $1,671,956 $865,385 $25,487,545 $0 -$1,764,026 $3,199,922 $18,726,574 $600,000 $231,874 $19,558,448 $865,385 $0 -$1,208,333 $1,208,333 $865,385 $27,159,501 $0 -$20,523,598 $4,963,947 $18,726,574 $600,000 $231,874 $19,558,448 $0 $0 $0 $0 $0 $0 $28,367,834 $0 -$1,671,956 $25,487,545 $18,726,574 $600,000 $231,874 $19,558,448 SECURED REVENUE ACCOUNT BOM Revenue Account Balance Revenues, pre-disbursement Cost of Energy Discharge Disbursement from/(to) Operating Account Revenues, post-dispursement EOM Revenue Account Balance $0 $0 -$1,208,333 $2,073,718 $865,385 -$1,208,333 $27,159,501 $18,726,574 $600,000 $231,874 $19,558,448 OPERATING ACCOUNT BOM Operating Account Balance Disbursement from/(to) Revenue Account Non-Energy Expenses Disbursement from/(to) Reserve Fund EOM Operating Account Balance $0 -$19,558,448 $50,000,000 -$2,073,718 $28,367,834 COLLATERAL REQUIREMENTS Supplier Collateral Requirement CPUC and CAISO Bond Requirements SDG&E Deposit Total Other Uses RESERVE FUND BOM Reserve Fund Balance Collateral Requirements Deposit from Financing Disbursement from/(to) Operating Account EOM Reserve Fund Balance 35 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) FUND BALANCE Less Outstanding Debt Net Worth (Simplified) SHORT TERM COST OF SERVICE MODEL $18,726,574 $15,336,704 74 $61,084,533 $50,000,000 $11,084,533 2016 JUL $18,726,574 $600,000 $231,874 $19,558,448 $18,726,574 $11,145,466 1 $72,052,915 $42,500,000 $29,552,915 2016 AUG $18,726,574 $600,000 $231,874 $19,558,448 $18,726,574 -$403,674 (0) $71,503,407 $35,000,000 $36,503,407 2016 SEP $18,726,574 $600,000 $231,874 $19,558,448 $18,726,574 -$80,531 (0) $71,308,293 $27,500,000 $43,808,293 2016 OCT $18,726,574 $600,000 $231,874 $19,558,448 $18,726,574 $661,578 0 $71,886,538 $20,000,000 $51,886,538 2016 NOV $18,726,574 $600,000 $231,874 $19,558,448 $18,726,574 $997,821 0 37 $72,832,275 $12,500,000 $60,332,275 2016 DEC $19,556,789 $600,000 $222,523 $20,379,312 $19,556,789 -$8,010,500 (1) 10 $64,800,941 $5,000,000 $59,800,941 2017 JAN $19,556,789 $600,000 $222,523 $20,379,312 $19,556,789 -$7,161,797 (1) 7 $57,639,144 $0 $57,639,144 2017 FEB $19,556,789 $600,000 $222,523 $20,379,312 $19,556,789 -$2,466,565 7 $55,172,579 $0 $55,172,579 2017 MAR $19,556,789 $600,000 $222,523 $20,379,312 $19,556,789 -$1,939,606 8 $53,232,973 $0 $53,232,973 2017 APR CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION SUMMARY METRICS ($/KWH) Cost Of Energy Cost Of Energy Sold Average Retail Rate PCIA Charges (Reimbursed) Customer Savings Cash Flow by Account SUPPLIER RESERVE AMOUNT $18,726,574 $600,000 $231,874 $19,558,448 OPERATING ACCOUNT BOM Operating Account Balance Disbursement from/(to) Revenue Account Non-Energy Expenses Disbursement from/(to) Reserve Fund EOM Operating Account Balance SECURED REVENUE ACCOUNT BOM Revenue Account Balance Revenues, pre-disbursement Cost of Energy Discharge Disbursement from/(to) Operating Account Revenues, post-dispursement EOM Revenue Account Balance $12,388,879 $15,754,158 $3,365,279 $0 $865,385 $14,116,904 -$1,728,025 -$12,388,879 $865,385 $22,167,051 $25,749,870 -$15,073,443 -$14,116,904 $6,179,969 $24,906,543 $10,390,067 $26,144,224 $15,754,158 $0 $865,385 $19,583,752 -$9,193,685 -$10,390,067 $865,385 $24,906,543 $28,159,519 -$14,755,736 -$19,583,752 $6,758,285 $25,484,858 $286,587 $26,430,812 $26,144,224 $0 $865,385 $9,447,162 -$9,160,575 -$286,587 $865,385 $25,484,858 $29,610,949 -$26,922,072 -$9,447,162 $5,922,190 $24,648,764 -$1,184,992 $25,245,820 $26,430,812 $0 $865,385 $7,941,139 -$9,126,130 $1,184,992 $865,385 $24,648,764 $28,800,281 -$26,781,333 -$7,941,139 $6,912,068 $25,638,641 $1,442,497 $26,688,317 $25,245,820 $0 $865,385 $10,536,820 -$9,094,322 -$1,442,497 $865,385 $25,638,641 $30,239,073 -$26,614,321 -$10,536,820 $6,047,815 $24,774,388 $1,727,696 $28,416,014 $26,688,317 $0 $865,385 $10,786,160 -$9,058,464 -$1,727,696 $865,385 $24,774,388 $21,941,065 -$17,202,720 -$10,786,160 $5,265,856 $23,992,429 -$6,834,028 $20,761,122 $28,416,014 -$820,864 $865,385 $2,257,185 -$9,060,925 $6,834,028 $895,673 $23,992,429 $13,366,859 -$15,545,314 -$2,257,185 $3,208,046 $22,764,835 -$5,594,515 $15,166,607 $20,761,122 $0 $895,673 $945,577 -$6,540,091 $5,594,515 $895,673 $22,764,835 $13,673,032 -$15,935,501 -$945,577 $1,640,764 $21,197,553 -$3,901,979 $11,264,628 $15,166,607 $0 $895,673 -$2,361,888 -$1,540,091 $3,901,979 $895,673 $21,197,553 $12,817,407 -$16,820,058 $2,361,888 $3,076,178 $22,632,966 -$1,410,570 $9,854,058 $11,264,628 $0 $895,673 $129,522 -$1,540,091 $1,410,570 $895,673 $22,632,966 $12,735,709 -$15,682,365 -$129,522 $2,547,142 $22,103,931 Summary & Financial Metrics FINANCIAL METRICS EBITDA Debt Service Capacity Ratio Debt Service Capacity Ratio - 12 Months COLLATERAL REQUIREMENTS Supplier Collateral Requirement CPUC and CAISO Bond Requirements SDG&E Deposit Total Other Uses RESERVE FUND BOM Reserve Fund Balance Collateral Requirements Deposit from Financing Disbursement from/(to) Operating Account EOM Reserve Fund Balance 36 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) FUND BALANCE Less Outstanding Debt Net Worth (Simplified) SHORT TERM COST OF SERVICE MODEL -$1,695,025 10 $51,537,948 $0 $51,537,948 2017 MAY $4,219,477 13 $55,757,426 $0 $55,757,426 2017 JUN $19,556,789 $13,518,432 15 $69,275,858 $0 $69,275,858 2017 JUL $19,556,789 $17,589,063 37 $86,864,921 $0 $86,864,921 2017 AUG $19,556,789 $6,392,674 81 $93,257,595 $0 $93,257,595 2017 SEP $19,556,789 $7,018,986 186 $100,276,581 $0 $100,276,581 2017 OCT $19,556,789 $7,640,600 495 $107,917,181 $0 $107,917,181 2017 NOV $19,556,789 $8,836,840 2,109 $116,754,021 $0 $116,754,021 2017 DEC $19,861,838 -$371,082 - $116,382,939 $0 $116,382,939 2018 JAN $19,861,838 -$2,457,155 - $113,925,784 $0 $113,925,784 2018 FEB CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION Summary & Financial Metrics FINANCIAL METRICS EBITDA Debt Service Capacity Ratio Debt Service Capacity Ratio - 12 Months $19,556,789 $23,191,085 $14,273,398 -$16,867,045 -$735,601 $1,712,808 $21,574,646 $19,556,789 $24,987,418 $13,871,862 -$15,995,874 -$3,001,567 $3,329,247 $23,191,085 $927,022 $735,601 -$1,576,316 $840,716 $927,022 SUMMARY METRICS ($/KWH) Cost Of Energy Cost Of Energy Sold Average Retail Rate PCIA Charges (Reimbursed) Customer Savings Cash Flow by Account SUPPLIER RESERVE AMOUNT $25,767,943 $22,627,621 -$17,681,319 -$11,157,457 $5,430,629 $24,987,418 $895,673 $3,001,567 -$1,576,316 -$1,393,902 $927,022 $71,580,471 $0 $19,861,838 $600,000 $222,523 $20,684,361 $26,625,500 $31,055,771 -$28,086,234 -$10,038,249 $6,211,154 $25,767,943 $895,673 $11,157,457 -$1,540,091 -$9,617,365 $895,673 $70,491,618 -$305,049 -$840,716 $70,739,755 $19,861,838 $600,000 $222,523 $20,684,361 $25,552,750 $29,452,964 -$27,962,599 -$7,486,327 $7,068,711 $26,625,500 $895,673 $10,038,249 -$1,540,091 -$8,498,157 $895,673 $60,874,253 $0 $1,393,902 $71,580,471 $19,556,789 $600,000 $222,523 $20,379,312 $26,179,456 $29,979,804 -$28,043,000 -$8,559,472 $5,995,961 $25,552,750 $895,673 $7,486,327 -$1,540,091 -$5,946,235 $895,673 $52,376,096 $0 $9,617,365 $70,491,618 $19,556,789 $600,000 $222,523 $20,379,312 $25,365,435 $27,594,448 -$15,087,961 -$18,315,133 $6,622,668 $26,179,456 $895,673 $8,559,472 -$1,540,091 -$7,019,381 $895,673 $46,429,861 $0 $8,498,157 $60,874,253 $19,556,789 $600,000 $222,523 $20,379,312 $22,941,025 $24,202,692 -$14,952,815 -$12,634,113 $5,808,646 $25,365,435 $895,673 $18,315,133 -$1,540,091 -$16,775,042 $895,673 $39,410,480 $0 $5,946,235 $52,376,096 $19,556,789 $600,000 $222,523 $20,379,312 $22,457,636 $16,921,181 -$14,545,848 -$5,276,180 $3,384,236 $22,941,025 $895,673 $12,634,113 -$1,540,091 -$11,094,022 $895,673 $22,635,438 $0 $7,019,381 $46,429,861 $19,556,789 $600,000 $222,523 $20,379,312 $22,103,931 $12,086,865 -$15,142,646 $508,639 $2,900,848 $22,457,636 $895,673 $5,276,180 -$1,540,091 -$3,736,089 $895,673 $11,541,416 $0 $16,775,042 $39,410,480 $19,556,789 $600,000 $222,523 $20,379,312 $895,673 -$508,639 -$1,540,091 $2,048,731 $895,673 $7,805,327 $0 $11,094,022 $22,635,438 $19,556,789 $600,000 $222,523 $20,379,312 SECURED REVENUE ACCOUNT BOM Revenue Account Balance Revenues, pre-disbursement Cost of Energy Discharge Disbursement from/(to) Operating Account Revenues, post-dispursement EOM Revenue Account Balance $9,854,058 $0 $3,736,089 $11,541,416 $19,556,789 $600,000 $222,523 $20,379,312 OPERATING ACCOUNT BOM Operating Account Balance Disbursement from/(to) Revenue Account Non-Energy Expenses Disbursement from/(to) Reserve Fund EOM Operating Account Balance -$2,048,731 $7,805,327 COLLATERAL REQUIREMENTS Supplier Collateral Requirement CPUC and CAISO Bond Requirements SDG&E Deposit Total Other Uses RESERVE FUND BOM Reserve Fund Balance Collateral Requirements Deposit from Financing Disbursement from/(to) Operating Account EOM Reserve Fund Balance 37 APPENDIX E. CCPARTNERS SAN DIEGO CCA PRO FORMA COST OF SERVICE MODEL (RESIDENTIAL/COMMERCIAL) FUND BALANCE Less Outstanding Debt Net Worth (Simplified) SHORT TERM COST OF SERVICE MODEL -$3,108,917 - $110,816,867 $0 $110,816,867 2018 MAR -$2,323,306 - $108,493,562 $0 $108,493,562 2018 APR $19,861,838 -$1,518,300 - $106,975,262 $0 $106,975,262 2018 MAY $19,861,838 $4,307,526 - $111,282,787 $0 $111,282,787 2018 JUN $19,861,838 $13,089,858 - $124,372,645 $0 $124,372,645 2018 JUL $19,861,838 $16,493,246 - $140,865,891 $0 $140,865,891 2018 AUG $19,861,838 $6,717,720 - $147,583,611 $0 $147,583,611 2018 SEP $19,861,838 $8,724,807 - $156,308,418 $0 $156,308,418 2018 OCT $19,861,838 $9,018,674 - $165,327,092 $0 $165,327,092 2018 NOV $19,861,838 $10,576,846 - $175,903,938 $0 $175,903,938 2018 DEC CITY OF SAN DIEGO COMMUNITY CHOICE AGGREGATION Summary & Financial Metrics FINANCIAL METRICS EBITDA Debt Service Capacity Ratio Debt Service Capacity Ratio - 12 Months $19,861,838 $26,341,981 $23,620,376 -$17,136,103 -$12,964,416 $5,668,890 $25,530,728 $19,861,838 $27,236,698 $32,400,717 -$28,285,870 -$11,489,706 $6,480,143 $26,341,981 $927,022 $12,964,416 -$1,576,316 -$11,388,099 $927,022 SUMMARY METRICS ($/KWH) Cost Of Energy Cost Of Energy Sold Average Retail Rate PCIA Charges (Reimbursed) Customer Savings Cash Flow by Account SUPPLIER RESERVE AMOUNT $26,117,501 $30,728,582 -$27,802,318 -$9,181,927 $7,374,860 $27,236,698 $927,022 $11,489,706 -$1,576,316 -$9,913,390 $927,022 $117,373,728 $0 $19,861,838 $600,000 $222,523 $20,684,361 $26,771,370 $31,278,316 -$29,239,943 -$8,947,905 $6,255,663 $26,117,501 $927,022 $9,181,927 -$1,576,316 -$7,605,611 $927,022 $107,460,338 $0 $11,388,099 $128,761,827 $19,861,838 $600,000 $222,523 $20,684,361 $25,923,254 $28,789,717 -$17,629,686 -$17,221,446 $6,909,532 $26,771,370 $927,022 $8,947,905 -$1,576,316 -$7,371,588 $927,022 $99,854,727 $0 $9,913,390 $117,373,728 $19,861,838 $600,000 $222,523 $20,684,361 $23,398,302 $25,255,899 -$16,651,140 -$12,141,222 $6,061,416 $25,923,254 $927,022 $17,221,446 -$1,576,316 -$15,645,130 $927,022 $92,483,139 $0 $7,605,611 $107,460,338 $19,861,838 $600,000 $222,523 $20,684,361 $22,897,975 $17,682,319 -$15,334,940 -$5,383,516 $3,536,464 $23,398,302 $927,022 $12,141,222 -$1,576,316 -$10,564,906 $927,022 $76,838,009 $0 $7,371,588 $99,854,727 $19,861,838 $600,000 $222,523 $20,684,361 $22,527,750 $12,650,572 -$15,628,693 $312,209 $3,036,137 $22,897,975 $927,022 $5,383,516 -$1,576,316 -$3,807,199 $927,022 $66,273,103 $0 $15,645,130 $92,483,139 $19,861,838 $600,000 $222,523 $20,684,361 $23,080,346 $13,329,558 -$16,742,459 $194,392 $2,665,912 $22,527,750 $927,022 -$312,209 -$1,576,316 $1,888,526 $927,022 $62,465,904 $0 $10,564,906 $76,838,009 $19,861,838 $600,000 $222,523 $20,684,361 $21,574,646 $13,410,451 -$18,161,560 $3,038,301 $3,218,508 $23,080,346 $927,022 -$194,392 -$1,576,316 $1,770,709 $927,022 $64,354,430 $0 $3,807,199 $66,273,103 $19,861,838 $600,000 $222,523 $20,684,361 $927,022 -$3,038,301 -$1,576,316 $4,614,617 $927,022 $66,125,138 $0 -$1,888,526 $62,465,904 $19,861,838 $600,000 $222,523 $20,684,361 SECURED REVENUE ACCOUNT BOM Revenue Account Balance Revenues, pre-disbursement Cost of Energy Discharge Disbursement from/(to) Operating Account Revenues, post-dispursement EOM Revenue Account Balance $70,739,755 $0 -$1,770,709 $64,354,430 $19,861,838 $600,000 $222,523 $20,684,361 OPERATING ACCOUNT BOM Operating Account Balance Disbursement from/(to) Revenue Account Non-Energy Expenses Disbursement from/(to) Reserve Fund EOM Operating Account Balance -$4,614,617 $66,125,138 COLLATERAL REQUIREMENTS Supplier Collateral Requirement CPUC and CAISO Bond Requirements SDG&E Deposit Total Other Uses RESERVE FUND BOM Reserve Fund Balance Collateral Requirements Deposit from Financing Disbursement from/(to) Operating Account EOM Reserve Fund Balance 38   APPENDIX F  SAMPLE CCA RISK MATRIX, PREPARED FOR THE CITY OF BENICIA    In 2014, the City of Benicia retained MRW & Associates, LLC to examine the risks associated with joining  MCE and review the “Marin Clean Energy Applicant Analysis for the City of Benicia” as part of its due  diligence related to participation in MCE.      Description of Risk      Procurement Risks    Volume Risk: Uncertainty in load can cause under‐ or over‐procurement     Future Price Risk: MCE cannot procure power for incremental customers at  competitive costs      Expansion of CCA: Can current contract accommodate all new customers?    Magnitude or Importance of Risk    Contract Renewal: MCE cannot procure power at competitive prices at end  of current agreement      Regulatory and Policy Risks      Adverse CPUC Decisions: Exit Fees and bonding costs may be higher than  expected      MCE’s lack of low‐income ratepayer policy       Benicia’s interests may not always align with that of other JPA members      Customer Cost Risks      PG&E Exit Fees: Who bears risk of changes in exit fees?       Uncertainty in Departing Load Fees: How much must customers pay to exit  CCA after opt‐out period ends?      MCE Pricing Commitment: Will MCE meet or beat PG&E’s rates?      MCE Pricing Commitment: Will MCE guarantee CARE customers won’t pay  more with MCE than they would have with PG&E?†    High  39        Medium    Medium    Low    Medium    Low    Medium      High    Low    High    High      City‐Specific Risks        Supplier Guarantees: City must provide guarantees to power suppliers       New Generation Guarantees: City must provide support to obtain financing  for new generation      Financial liability if MCE fails      Low    40      Low    Low