ava . a mm ?"4131. City of Winters Briefing October 16, 2018 VALLEY CLEAN ENERGY WHAT IS VALLEY CLEAN ENERGY? Valley Clean Energy (VCE) is a local, community-based electricity provider that brings clean energy at competitive rates to residents and businesses in Woodland, Davis and unincorporated Yolo County. As a Community Choice Energy (CCE) Program, VCE partners with PG&E to give its member communities a choice in how much of its electricity comes from clean and renewable sources. 2 WHAT IS COMMUNITY CHOICE How Community Choice Energy Works source delivery customer buying and building delivering energy, benefitting from electricity supply maintaining lines, affordable rates, billing customers local control, cleaner energy CCE IS ON THE RISE IN CALIFORNIA There are currently 20 operational CCE programs in the State of California serving nearly 3 million customers, with several others in planning and development phases 4 VCE HISTORY IN BRIEF YEAR ACTIVITY 2015-2016 • Feasibility study and initial planning 2016/17 • JPA forms with Yolo County, Davis and Woodland as founding members • SMUD partnership formed • Implementation Plan certified 2018 • Service launch in June • Customer program development • Outreach to nearby communities 5 WHAT ARE VCE’s BENEFITS? COMPETITIVE RATES LOCAL CONTROL SUSTAINABILITY REINVESTMENT IN THE COMMUNITY CUSTOMER CHOICE VCE’s ENERGY OPTIONS Standard Option: • All customers automatically enrolled June 2018 • Competitive rates (2018 rate is 2½% below PG&E’s) • Cleaner energy than PG&E (2018 mix is 42% renewable) 100% Clean Energy Option: • Customers can choose to opt up for slightly higher rate (1.5¢/kWh) • 100% clean energy • Greatest reduction in greenhouse gas emissions DOES VCE REPLACE PG&E? No, Valley Clean Energy sources the energy and PG&E continues to: • Deliver electricity and natural gas • Maintain power lines • Respond to new service requests, power outages and emergencies. • Send one consolidated bill HOW DOES CUSTOMER ENROLLMENT WORK? • CCE’s are by statute, opt-out programs • Eligible customers will be automatically enrolled and VCE will become the default electricity provider • Customers receive 4 notices as required by law – 60 days prior to service commencement and 60 days post enrollment • Customers always have the option to opt-out and return to PG&E’s bundled utility service • Commercial accounts served by Direct Access are exempt VCE Charges on the Bill NERGY STATEMENT N03 102345678943 Statement Date: 07/02/2018 .pge.com/MyEnergy Due Date: 07/23/2018 Service For: Your Account Summary SPARKY JOULE Credit Balance on Previous Statement $135.67 1234 MAIN STREET Payment(s) Received Since Last Statement -135.67 WOODLAND, CA 95695 Previous Unpaid Balance 0.00 Questions about your hill? 1 24 hours per day, 7 days per week Phone: 1-866-743-0335 Total Amount Due by 07/23/2018 $131.03 Local Office Address 242 NORTH WEST STREET WOODLAND, CA 95695 Breakdown of Charges on the Bill Your Electric Charges Breakdown Conservation Incentive -$13.50 Generation 41 .13 Transmission 16.?7 Distribution 50.14 Electric Public Purpose Programs 9.10 Nuclear Decommissioning 0.90 DWR Bond Charge 3.33 Competition Transition Charges (CTC) 0.79 PCIA 17.57 Tax and Other 4.80 Total Electric Charges $131.03 HOW IS SMUD INVOLVED? SMUD is a contractor to VCE to provide power procurement and operational services VCE maintains fiduciary autonomy and decision-making authority Provides bundled services to VCE • Technical and energy services, data management and call center services, wholesale energy services, credit support services, and business operations support Provides best value to Valley Clean Energy • Mission alignment, cost competitiveness, and extensive energy sector experience SOLAR CUSTOMERS Will be automatically enrolled–no additional paperwork required Will earn credit based on the amount of electricity generated to offset some or all charges normally paid for electricity Credits will roll over, not zero out Valley Clean Energy will purchase excess power through our net metering program (1 cent/kWh higher than PG&E). 1 3 Risks and Mitigation RISK (Examples) MITIGATION Regulatory: CPUC – Power Charge Indifference Adjustment (PCIA) • • • • Customer Opt Out • Strong customer service • Demonstrate value of local control, price competitiveness, clean energy • Reinvest in local communities Demand Reduction • Facilitate technological advancements that allow VCE to provide energy services (e.g. EV charging & grid services) Final CPUC Decision: October 12, 2018 Studying impacts Considering options to challenge ruling CalCCA 1 4 TIMELINE & PROCESS FOR NEW COMMUNITIES For Spring 2020 Service: 1. Authorize PG&E load data for technical analysis (Aug/Sept) 2. Join VCE as a new member agency by passing JPA resolution and CCE ordinance (Oct/Nov) 3. Appoint JPA Board member and alternate (Nov) 4. VCE will amend Implementation Plan for submittal to CPUC by December 31, 2018 (Nov/Dec) 5. Cost to Join: $25k to $50k; reimbursable 6. Local staff to assist with community outreach and public information (2019) For Spring 2021 Service: • Same steps as above (with expanded timeline) • Amended Implementation Plan to CPUC by December 2019 1 5 HOW TO STAY INFORMED Join our email list • ValleyCleanEnergy.org Follow us on social media • Facebook.com/ValleyCleanEnergy • @VCleanEnergy Attend a public Board of Directors meeting • 2nd Thursday of each month, 5:30-7:30pm Become a brand champion • Email info@valleycleanenergy.org 1 6 ValleyCleanEnergy.org VALLEY CLEAN ENERGY