2020 RPS & Storage RFO Update

PRESENTED BY: Howard Chang

DATE: July 9, 2021

Goals & Objectives

• Secure a portfolio of contracts to provide EBCE customers with affordable renewable and clean energy sources

• Meet a significant percent of SB350 long-term contracting requirements, equal to 65% of RPS obligations

• Meet IRP Near- and Mid-Term Resource Adequacy Reliability Procurement mandates

• Create new renewable energy projects to deliver PCC1 RECs

• Contract low-cost energy hedges to complement existing portfolio

Actions

• Issued a broad, open, competitive solicitation to ensure wide array of opportunities considered

• Evaluated exhaustive combinations of projects to achieve desired volume targets, while optimizing project risk, location, workforce development, economics, and other characteristics

• Encouraged RFO participants to be creative and provide proposal variations on individual projects and include battery storage

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Project CharacteristicsFacilities:• Location: Projects may be within or

outside of California. All energy must be deliverable to CAISO.

• Construction Status: Energy and related products may come from new or existing resources.

Capacity:• Minimum Contract Capacity: 10 MW• Maximum Contract Capacity: 200 MW

Delivery Date:• Energy and RPS attribute delivery must

be within calendar years 2021, 2022, 2023, or 2024, with a preference for projects that begin delivery earlier within this window.

Contract Duration:• 5-20 year durations

Technology:• Renewables, Storage, and Large Hydro

Solicitation Overview

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Participation• Robust project offering with over 70 unique project sites and over 400

contract variations

• All 6 products that were solicited were offered

• Offers included solar, wind, geothermal, hydro, and storage

• Projects based in 6 different states, predominantly CA

Evaluation Process• Evaluation Rubric scored 3 areas:

– Counterparty Execution, Offer Competitiveness, and Project Development Status– Multiple items under each area

• Two reviewers were assigned to each project. • Staff reviewed all submitted information and provided scores for all categories except

for Term Sheet Markups and NPV.– Each item has 10 point max. at its own weighting.– Term Sheet Markups were scored by one assigned reviewer.– NPV scores were directly incorporated into overall project score with a weighting of 45%.

• The Net Present Value was calculated based on simulations on 3 different forward curves • For each forward curve we took a weighted average of the P5 (50%), P50 (25%), and P95 (25%) and then took

a simple average across the 3 curves • We normalized this number on a $/MW basis and the projects were then assigned a 0-10 score based on the

NPV distribution• Scoring and rubric were consistent with the selection process for the 2018 California

Renewables RFP.

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Regulatory considerations• SB350

– Requires a minimum 65% of RPS contracts to be under long-term (10yrs+) PPAs

• SB100– 50% renewables by 2026, 60% renewables by 2030, 100% carbon-free energy by 2045– EBCE board adopted a target of 100% carbon-free energy by 2030

• PCIA WG3– Addresses the disposition of IOU's long renewables position. Anticipate transfers initiating

in 2023, uncertainty on volumes and long vs short term positions

• CPUC IRP Ruling – Mandates additional incremental RA procurements from 2023 to 2026

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Projects Proposed for ExecutionSeeking approval for four contracts: one RPS Power Purchase Agreement (PPA), one Energy Storage Agreements (ESA), one RPS PPA+ESA, and one indexed RPS contract with Resource Adequacy, submitted into EBCE’s 2020 Renewable Energy & Storage Resource RFO

• 10-year 100 MW wind farm based in New Mexico with Pattern Energy. Expected to be operational in December 2021.

• 12-year 47 MW/188 MWh battery storage project in Kern County with Terra-Gen. Expected to be operational in June 2022.

• 15-year 50 MW solar and storage project with a 12.5MW/50MWh battery, in San Bernadino County, with Clearway. Expected to be operational in March 2023.

• 15-year 125MW solar + 125 MW RA from battery storage project in Riverside County with Intersect Power. Expected to be operational in December 2023.

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Pattern Project Details• Selected via the 2020 Renewable Energy & Storage RFO• 100MW wind project based in Torrance and Guadalupe counties, New Mexico

– Total project size is 272 MW• 10-year contract• Expected Commercial Operation Date is Dec 31st, 2021• Project has an executed interconnection agreement and site control• Pattern is investing into EBCE’s Community Investment fund as part of this contract• Utilizing union and non-union labor and prevailing wages in New Mexico• The contracting entity under Pattern is Tecolote Wind LLC

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Pattern Company Overview• Pattern Energy is one of the world’s largest privately-owned developers and operators of

wind, solar, transmission, and energy storage projects.• Founded in 2009, Pattern's operational portfolio includes 28 renewable energy facilities

that use proven, best-in-class technology with an operating capacity of 4.4 GW in the United States, Canada and Japan.

• Pattern has a strong track record in CA and experience with CCAs; Owns and operates at least 1 executed PPA contracted with CCAs:

– Duran Mesa Wind, New Mexico with SVCE and CCCE (200 MW)– Grady Wind, New Mexico with SMUD (220 MW)– Hatchet Ridge Wind, Shasta County with PG&E (101 MW)– Ocotillo Wind, Imperial County with SDG&E (265 MW)

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Terra-Gen Project Details• Selected via the 2020 Renewable Energy & Storage RFO• 47MW / 188MWh standalone battery storage project based in Kern County, neighboring Edwards Air

Force Base– Project location near solar projects signed out of 2018 RFP, serves as a hedge– 47MW of RA and includes ability to extend duration in the future

• 12-year contract; Tolling structure; P-node settled project• Expected Commercial Operation Date is June 2022

– EBCE to receive 2022 summer RA: either from project if CAISO operational study results enable June 2022 COD, or from neighboring new build project if study results require November 2022 COD.

• Project has an executed interconnection agreement, site control, and is fully permitted under CEQA.• Terra-Gen is investing into EBCE’s first Community Investment fund as part of this contract• Terra-Gen has already executed a Project Labor Agreement (PLA) utilizing union labor• The contracting entity under Terra-Gen is Edwards Sanborn Storage III, LLC

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Terra-Gen Company Overview• Terra‐Gen is an independent power producer focused on the development, construction and operation

of power generation facilities utilizing clean energy resources such as wind, solar, geothermal and battery storage with over 1,300 MW in operations and construction and 3+ GW in development

• Terra‐Gen was established in August 2007 and acquired by Energy Capital Partners (ECP) in September 2015

• Terra‐Gen is comprised of a development business, an operations and maintenance (“O&M”) platform and an Operating Portfolio (~1 GW)

• Strong track records in CA and among CCAs, having at least 1 executed PPA with the following:– EBCE (Edwards Solar II – 100 MW solar and virtual storage, approved by EBCE Board Sept. 2019)– MCE– CPA– CPSF– SJCE– Pioneer

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Clearway Project Details• Selected via the 2020 Renewable Energy & Storage RFO• 50 MW of Solar PV capacity• 12.5 MW / 50 MWh of co-located battery storage• The facility is part of the advanced stage Daggett facility which is 482 MW solar PV and

storage complex located in San Bernardino County, CA of which portions are scheduled to come online in 2022

• 15-year contract term with the expected Commercial Operation Date March 1st, 2023• Project has an executed interconnection agreement, site control, and is fully permitted under

CEQA.• Clearway is investing into EBCE’s Community Investment fund as part of this contract and has

signed a Letter of Intent to execute a five-trade PLA• The contracting entity under Clearway is Daggett South Power 3, LLC

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Clearway Company Overview• Clearway Energy Group is a well-capitalized, privately-owned company with access to

sufficient funds to complete development of the proposed projects• With the corporate offices in San Francisco and Carlsbad, Clearway has approximately 150

employees based in California• Clearway, with over a decade of experience in developing, financing, and operating

renewable energy projects; and owns and operates a portfolio of 5 GWs of renewable energy assets across 26 states and owns a pipeline of over 10 GWs of wind, solar, and energy storage projects under development

• Strong track records in CA and some experience with CCAs, having at least 1 executed PPA with the following:

– EBCE (Rosamond (online)– 112 MW solar, approved by EBCE Board Sept. 2019)– CPA

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Intersect Project Details• Selected via the 2020 Renewable Energy & Storage RFO• 125 MW solar PV + 100MW battery storage project based in Desert Center, Riverside

County– Total project size is 500 MW PV + storage across all off-takers

• 15-year contract for Index + PCC1 REC• 10-year contract for RA• Expected Commercial Operation Date is December 31, 2023• Obtained Full Capacity Deliverability Status in April 2021• Project has a total of 6,300 acres under site control with 3,500 being used for solar and

battery installations.• Intersect is investing into EBCE’s Community Investment fund as part of this contract

and is in the process of signing PLA to utilize union labor• Contracting entity is IP Oberon II, LLC

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Intersect Company Overview• Intersect Power is a clean infrastructure company bringing efficient, innovative, and scalable low-

carbon solutions to its customers in energy and commodity markets.– Intersect Power and Softbank Energy are joint venture partners in Intersect Power

Renewable Energy Holdings• Intersect Power has successfully developed, permitted and contracted a 1.7GWp portfolio of 250

MWp + PV projects across California and Texas.• Intersect Power is a company of 22 employees, 7 of which reside in Alameda County and majority

in the greater San Francisco Bay Area.• Intersect has a portfolio of solar PV projects across the country with utilities and merchants

including:– East Bay Community Energy (Aramis Project – RA Only)– Austin Energy– Direct Energy– Lower Colorado River Authority

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Portfolio Characteristics• The final portfolio will include storage

projects brought to Board in June and future approvals

• Projects range from 47 to 125 MWs in nameplate capacity, all storage has 4 hour duration

• Project maturities range from early to late-stage development

• All three in-state projects are committed to utilizing union labor

• Final portfolio selection does account for project fall-out risk

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100 MW WindDec. 2021 COD

47 MW BatteryJune 2022 COD

50 MW Solar12.5 MW StorageMarch 2023 COD

125MW Solar125 MW RA

Dec. 2023 COD

Gray icons represent existing EBCE contracts.

RPS Portfolio – Existing Contracts

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Contracted Portfolio:

Developer TechnologyNameplate

MW Storage MW County

Actual or Expected

COD Term SettlementClearway Energy Group Solar 112 N/A Kern 12/22/2020 15 DLAPSalka Energy Group Wind 57.5 N/A Alameda 6/30/2021 20 PnodeIdemitsu Solar Solar 55.8 N/A Tulare 12/31/2021 15 DLAPEDP Renewables North America Solar+Storage 100 30MW/120MWh Fresno 12/31/2022 20 PnodesPower Solar+Storage 125 80MW/160MWh Kern 12/31/2022 20 PnodeTerra-Gen Solar+Virtual Storage 100 TBD Kern 12/31/2022 15 Pnode

Next Steps• Complete negotiations of additional projects under consideration.

• Informational update to Board following execution of all contracts from the 2020 RPS & Storage Resource RFO.

• Assess projects as they hit key milestones and mature further.

• Update filing to CPUC on status of 2021-2023 Electric Reliability Requirements due August 2, 2021.

• CPUC’s 2021 IRP cycle provides formal opportunity for portfolio review and analysis of open position, cost and risk. Further engagement with board and community in spring/summer timeframe.

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