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Introducing the Silicon Valley Community

Choice Energy Partnership

Saratoga City CouncilWednesday, November 4, 2015

Melody TovarCity of Sunnyvale | SVCCEP

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What is Community Choice Energy?

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Why are we considering this?

• Communities adopting Climate Action Plansfor Greenhouse Gas Reduction

• Transportation and Electricity Consumption are largest community contributors of GHG

• Transforming Electricity Sourcing is essential to reaching goals

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Accelerating Renewables

Solar

Wind

Biomass

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Introducing SVCCEP - Silicon Valley Community Choice Energy Partnership

Sponsoring Agencies

Sunnyvale | Cupertino | Mountain View | Santa Clara County

Also ParticipatingCampbell | Gilroy | Los Altos | Los Altos Hills

Monte Sereno | Morgan Hill | Saratoga

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www.SVCleanEnergy.org

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Assessment Report LEAN Energy US, May 2015

Key Findings• Good potential to meet climate action goals• Timing is good• Existing CCE programs are performing well• Anticipated rate savings in the near term• Risks exist but can be mitigated

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Proven Model in Current Programs

• Green power; more renewables

• Competitive rates – currently lower

• Enhanced local energy programs

• Financially sound

27 36

100

0%

50%

100%

PG&E CleanStart EverGreen

UnspecifiedNuclearNatural GasLarge HydroRenewable

824

21

21 20

44

Electric Power Generation Mix*PG&E – Sonoma Clean Power Comparison

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Parallel Tracks

Technical Study & Program Development

Stakeholder Engagement

Agency Agreement & Preparation

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Community Engagement

• Community Meetings Round 1 (6 meetings) complete Round 2 in December/January

• Targeted Stakeholder Forum November 17th in Sunnyvale

• Business Engagement Webinar November 4th

Business Forum Meeting – December Business Groups, Chambers

• Grows in next phase• Customer Noticing 60 days before service

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The Path Ahead

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Partner Decision Making• Managers and Electeds Forum

on November 19:- Tech Study Presentation- Discuss Input to JPA Agreement- Discuss Cost-sharing Contribution

• Council/Board Action- Adopt CCE Ordinance

(with 2nd reading)- Resolution to Join JPA; approve final agreement- Approve Cost-sharing Contribution

• Target – Action by March 31, 2016- Council preparatory info by December 9, 2015- Sponsoring Agencies targeting action by January 31, 2016- First JPA meeting in April 2016

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Thank you.

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Pocket Slides

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SVCCEP Milestones and TimelineWe are Here

Phase 1 Phase 2 Phase 3INITIAL STUDY TECHNICAL FEASIBILITY CCE PROGRAM

DEVELOPMENTCCE LAUNCH

ID potential agency partners ID opportunities, costs,

and risks Investigate other CCEs Inform community and

gather feedback Framework for next steps

ID partners & funding Technical Study: load

and rate analysis, economics, supply options, environmental outcomes Community outreach &

input

JPA Formation Expand Outreach Energy Svcs Pricing and

Procurement Enabling Ordinance Implementation Plan to

CPUC Agmt with PG&E Bridge financing to

revenue

Staffing and Org setup Energy and other Service

Contracts Customer notifications

and service Conservation &

Renewables programming

Fall 2015Technical Study Completed

Winter 2015Communities Decide JPA

Spring 2016Implementation Plan to CPUC

Winter 2017Program Launch!

Summer 2016Ramp-up Operations and Communications

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SVCCEP Priority Goals

• Offer renewable energy supply options that exceed the renewable content offered by IOU.

• Reduce GHG emissions to support local climate action goals.

• Provide competitive, potentially lower, electricity rates for all customers.

• Facilitate the use of clean technology, local clean power, and other energy innovations.

• Create and maintain a local public agency that is well managed and financially sustainable.

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Overview of Usage by Community

Sunnyvale

Mountain View

Unincorporated Santa Clara

Cupertino

Campbell

Gilroy

Los Altos

Los Altos Hills

Los Gatos

Monte Sereno

Morgan Hill

Saratoga

68%

32%

Electricity Usage by Community4 Million MWh Total

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Technical Study Scenarios

1. Match PG&E GHG-free content and start at 35% Renewable Portfolio Content

2. Exceed PG&E content, starting at 50% RP escalating to 75% by 2030, and ensure that GHG remains 20% below PG&E

3. Maximize GHG-free and RP content, while achieving rate parity with PG&E Include 100% RP voluntary program in all scenarios Utilize Product Content Category 1, 2 split of 75%/25% in all

scenarios

Technical Study Results Presentation at 11/19 Managers & Electeds Meeting

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Risks Exist But Can Be Mitigated

20

Risks related to CCE

Financial Risk Competitive and Pricing Risk/

Opt‐Out Rates Market Exposure Regulatory Risk Political Risk

Assessment Report analyzes these risks andoutlines potential risk‐mitigation measures

Effecton Business

Probabilityof Event