Business Forum on Community Choice Energy for Silicon Valley. January 29, 2015

Transcription

1 Business Forum on Community Choice Energy for Silicon Valley January 29, 2015

2 Background and Purpose Local governments to conduct Community Choice Energy Feasibility Study - Accelerate switch to cleaner power? - Will new competition and choice provide more local control over energy costs? Critical to engage corporate/business community Begin initial education, outreach and solicitation of feedback 2

3 Who s Involved? Tara Martin-Milius, Vice Mayor Rod Sinks, Mayor Melody Tovar, Regulatory Programs Elaine Marshall, Environmental Programs Connie Verceles, Economic Development Erin Cooke, Environmental Affairs Angela Tsui, Economic Development John McAlister, Mayor Steve Attinger, Environmental Sustainability Alex Andrade, Economic Development Joe Simitian, Supervisor Kris Zanardi, Supervisor Simitian s Office Demetra McBride, Climate/Sustainability Russ Hancock, CEO Don Bray, Public/Private Energy Programs Kara Gross, Public Sector Climate Programs Ann Hancock, Exec Director Barry Vesser, Energy Programs 3

4 An Energy System Transformation Today s Energy System... Linear Non-Renewable Dependent Closed Loop Inefficient Smart Energy Network of the Future Integrated Renewable Distributed Community-Scaled Efficient 4

5 5 Today s Agenda 10:30am Introduction and Overview Host Welcome 10:45 Community Imperatives for Clean Energy 10:50 Overview of Community Choice Energy in California 11:00 Community Choice Energy in Practice 11:25 Community Choice Energy from a Business Perspective Don Bray, Joint Venture Silicon Valley Brian Glazebrook, Senior Global Sustainability Manager, NetApp Vice Mayor Tara Martin-Milius, City of Sunnyvale Mayor Rod Sinks, City of Cupertino Mayor John McAlister, City of Mountain View 11:55 Discussion/Feedback/Next Steps Melody Tovar, City of Sunnyvale Joe Como, Director, Office of Ratepayer Advocates, California Public Utilities Commission Damon Connolly, Board Chair Marin Clean Energy Ann Hancock, Executive Director, Business for Clean Energy; Sonoma Clean Power Steering Committee Joe Carroll, Project Manager/Facilities Engr, Keysight Technologies Julien Gervreau, Senior Sustainability Manager, Kendall Jackson Jason Simon, Director of Policy Strategy, Enphase Energy 12:15pm Lunch and Table Networking Ann Hancock, Executive Director, Business for Clean Energy 1:00 Closing Melody Tovar / Ann Hancock

6 6 Today s Agenda Introduction and Overview Host Welcome Community Imperatives for Clean Energy Overview of Community Choice Energy in California Community Choice Energy in Practice Community Choice Energy from a Business Perspective Discussion/Feedback/Next Steps Vice Mayor Tara Martin-Milius, City of Sunnyvale Mayor Rod Sinks, City of Cupertino Mayor John McAlister, City of Mountain View Lunch and Table Networking Closing

7 Business Forum on CCE for Silicon Valley January 29, 2015 Cities of Sunnyvale, Cupertino, and Mountain View County of Santa Clara Joint Venture Silicon Valley Business for Clean Energy

8 CCE 8 graphic courtesy of Sonoma Clean Power

9 Mayor Jim Griffith Vice Mayor Tara Martin-Milius Mayor Rod Sinks Mayor John McAlister Supervisor Joe Simitian

10 10 Communities adopting Climate Action Plans for Greenhouse Gas Reduction Transportation and Gas/Electricity Consumption are largest community contributors of GHG Transforming Electricity Sourcing is essential to reaching goals 45% Sunnyvale/Mountain View GHG Sources C&I Electricity 7% 8% 26% 8% 6% C&I Nat Gas Res Electricity Res Nat Gas Transporation Solid Waste/Other

11 Systematic Change Big Impact Can Implement Quickly % of Cupertino 2020 CAP Targets % of Sunnyvale 2020 CAP Targets 51% 24-49% CCE Other CAP 46% 54% CCE Other CAP

12 12 Initial Study 4 Key Questions: Cities interested in a South Bay CCE Costs and risks to establish a CCE CAP actions that could be implemented through a CCE How to move forward, including framework and founding/lead agency Next Steps Council in May 2015 JPA formation? Funding for Technical Study, Outreach, and Program development?

13 13 Today s Agenda Introduction and Overview Host Welcome Community Imperatives for Clean Energy Overview of Community Choice Energy in California Community Choice Energy in Practice Community Choice Energy from a Business Perspective Discussion/Feedback/Next Steps Joe Como, Director, Office of Ratepayer Advocates, California Public Utilities Commission Lunch and Table Networking Closing

14 Community Choice Aggregation: A Customer Perspective Joe Como, Director January 2015

15 Overview Community Choice Aggregation CCA is a utility service adopted into law in the states of Massachusetts, Ohio, California, New Jersey, Rhode Island, and Illinois which allows cities and counties to aggregate the buying power of individual customers within a defined jurisdiction in order to secure alternative energy supply contracts on a community-wide basis Goal: More local control of energy supplies Goal: More renewable energy than IOU Benefits energy efficiency program funds, innovation in customer programs The Voice of Consumers, Making a Difference! 15

16 The Voice of Consumers, Making a Difference! 16

17 CCA History in California Authorized by AB 117 (Migden, 2001) Expanded by SB 790 (Leno, 2011) SB 790 also required CPUC to open Rulemaking to adopt a Code of Conduct, associated rules, and enforcement procedures, to govern the conduct of an electrical corporation relative to the CCAs D The Voice of Consumers, Making a Difference! 17

18 State Law Favors a Hands off Approach to CCA Service 1. CCAs register with the CPUC and submit an Implementation Plan. 2. By default utility customers in the geographic area of the CCA are CCA customers, unless they opt out. 3. CCAs need to provide universal access 4. Reliability 5. Equitable treatment of all classes of customers 6. Service Agreement with the underlying utility 7. Evidence of insurance or self-insurance The Voice of Consumers, Making a Difference! 18

19 ( /kwh) Evolution of the Four Tiers PG&E s history of tiered rates since energy crisis Tier 5 (> 301% of Baseline) Tier 4 ( % of Baseline) Tier 3 ( % of Baseline) Tier 2 ( % of Baseline) Baseline (Tier 1) Rate Revolt in Kern County Summer Rate Relief GRC Ph. 2 rates implemented 6/20/ Energy Crisis Average Residential Rate

20 Non-CARE Bills Non-CARE Summer Recent Evolution of Electricity Rates for the Residential Class Jan 2014 Jan 2015 Jan 2014 Jan 2015 Jan 2014 Jan 2015 Bill at Top Bill at Top Bill at Top Bill at Top Bill at Top Bill at Top of Tier of Tier $ Impact % Impact of Tier of Tier $ Impact % Impact of Tier of Tier $ Impact % Impact T1 <100 $ $ $ % $ $ $ % $ $ $ % T $ $ $ % $ $ $ % $ $ $ % T $ $ $ (30.48) -16% $ $ $ (10.80) -7% $ $ $ % T4 >200 (300) $ $ $ (27.72) -8% $ $ $ % $ $ $ % CARE Summer $ - PG&E Bill Impact SCE Bill Impact SDG&E Bill Impact T1 <100 $ $ $ % $ $ $ % $ $ $ % T $ $ $ % $ $ $ % $ $ $ % T $ $ $ % $ $ $ (0.60) 0% $ $ $ % T4 >200 (300) $ $ $ % $ $ $ (0.90) -1% $ $ $ % The Voice of Consumers, Making a Difference! 20

21 21 Today s Agenda Introduction and Overview Host Welcome Community Imperatives for Clean Energy Overview of Community Choice Energy in California Community Choice Energy in Practice Community Choice Energy from a Business Perspective Discussion/Feedback/Next Steps Damon Connolly, Board Chair Marin Clean Energy Ann Hancock, Executive Director, Business for Clean Energy; Sonoma Clean Power Steering Committee Lunch and Table Networking Closing

22 Marin Clean Energy Cleaner energy and lower rates January 2015 Honig Winery, Rutherford

23 About MCE Formed in 2008 Service start in 2010 ~165,000 customers served by mid-2015 (including Marin County, Unincorporated Napa County, Richmond, San Pablo and El Cerrito) 59,421 metric tons of greenhouse gas reductions $5.9 million customer savings in 2014

24 Community Choice Aggregation Communities collectively purchase electricity as an alternative to investor-owned utility power supply Community Choice in 6 States California Illinois Massachusetts New Jersey Ohio Rhode Island

25 How MCE works with PG&E

26 MCE is your solution to Not having a choice 3 new power supply choices! Negative environmental impacts Renewable energy options! High bills with unstable rates Lower rates!

27 Power Choices PG&E 22%* Renewable MCE Light Green 50% Renewable MCE Deep Green 100% Renewable MCE Local Sol 100% Local Solar *Most recently reported by PG&E

28 MCE Power Sources

29 MCE Local Development

30 Community Benefits Not-forprofit, public agency No shareholders Local Reinvestment 30

31 Average annual savings MCE customers saved $5.9 M in 2014 $34 $166 $97 Annual savings are based on MCE Light Green 50% renewable rates and PG&E rates effective January 2015.

32 Residential Cost Comparison Delivery rates stay the same Generation rates vary by service option PG&E assesses additional fees for MCE customers

33 Commercial Cost Comparison Delivery rates stay the same Generation rates vary by service option PG&E assesses additional fees for MCE customers

34 mcecleanenergy.org

35 Additional reference slides

36 MCE Board of Directors 15-Member Board of Directors (including San Pablo and Unincorporated Napa County) Local government elected officials Public oversight of rates, power sources and policies Report to California Public Utilities Commission, California Energy Commission, and customers 36

37 2013 Electric Power Content Mix PG&E MCE Light Green MCE Deep Green Renewable 22% 51% 100% Bioenergy 4% 6% 0 Geothermal 5% 0 0 Small hydroelectric 2% 12% 0 Solar 5% <1% 0 Wind 6% 33% 100% Large Hydroelectric 10% 10% 0 Natural Gas 28% 0 0 Nuclear 22% 0 0 Unspecified 18% 39% 0 TOTAL 100% 100% 100% 2012 GHG Emissions (lbs CO2e/MWh)

38 A Note About the Electric Grid Why is MCE s electricity not going directly from the source to my home or office? Each building would need a separate wire to get the power directly from the source. All of the electricity is put onto the same grid where electrons are mixed and flow freely. Kathmandu, Nepal 38

39 Energy Savings Programs $4.1 M program funded through Public Purpose Charge No-cost energy assessments for multifamily properties and businesses Valued at $3,000 - $5,000 Cash rebates Averaging 25-60% of project costs No-cost direct installs for multifamily tenant units On-bill financing loans 39

40 Customer-Sited Solar $23,500 towards residential solar rebates with priority for low-income customers Generous Net Energy Metering Premium credits (retail rate + 1 /kwh) Credits never zero out Annual cash out payout for solar customers 40

41 Local Programs Electric vehicle charging stations Tesla pilot program Bidgley Home Area Network pilot program Marin Green Business program Ruben Pendroza, RichmondBUILD graduate 41

42 New Renewable Energy, New Jobs 11 local projects Electricity to power up to 11,932 homes per year 14 suppliers Ensure a sufficient supply of clean and affordable energy 177 megawatts New, California renewable energy projects in development 2,400 jobs New solar projects will create more than 750,000 union work hours in just 12 months. 42

43 New Renewable Energy, New Jobs 85,000 homes per year Powered by MCE s new California renewable energy projects 750,000 hours More than 750,000 union work hours over 1 year created from new solar projects 59,421 Metric tons MCE greenhouse gas emission reductions since 2010 $515.9 M committed $353.9 million for new solar $44.7 million for new wind $117.2 million for new waste to energy 43

44 10 New Local Projects Underway 1 MW solar carport shade structure in Novato (Q2, 2015) Feed-In Tariff Projects: 999 kw solar in Greenbrae (Q1, 2015) 998 kw solar at Richmond Parkway (Q1, 2015) 998 kw solar in Richmond (Q1, 2015) 1.5 MW solar at Cooley Quarry in Novato (Q1, 2015) 990 kw solar at Novato Self Storage (Q3, 2015) 286 kw rooftop solar at CostPlus building in Larkspur (Q3, 2015) 4 MW biogas at Redwood Landfill in Novato (Q1, 2016) Local Renewable Development Fund Projects: 2-12 MW solar at Richmond Chevron-owned property(q3, 2015) 2-5 MW solar at Richmond Port brownfield site (Q2, 2016) 44

45 Sonoma Clean Power Sunnyvale - January 29, 2015 A program of the 45

46 SCP Phases 1. Commercial customers in first group of cities 2. All remaining customers in first group of cities 3. All customers in 3 cities that joined in 2014 Total - approximately 170,000 customers

47 Basic Service 33% 33% renewable power Competitive rates 5 to 8% lower than PG&E (January 2015) Available to everyone in participating cities Default service designed for maximum participation Total peak load (capacity) is approx. 250MW 47

48 CleanStart: Power Sources 30% Natural Gas + Other 33% Renewables 45% Natural Gas + Other 22% Renewables 11% Hydropower 37% Hydropower 22% Nuclear 2014 Contracted Sources PG&E 2013 Preliminary Reporting 48

49 Optional Premium Service 100% 100% local, 100% renewable power (geothermal) Premium of 3.5 cents per kwh (about 20% more than CleanStart) First of its kind in California driving innovation Optional program available to everyone in participating cities 49

50 Clear Options - Including the choice to opt out SonomaCleanPower.org 50

51 Keeping it Simple: Still just one bill from PG&E SCP Generation Charge 51

52 For Solar Customers: Net Green Bonus of $0.01 per kwh makes up for lower prices SCP generation credits never zero out Payment option if credits exceed $100 Unlike PG&E s program, incentivizes larger arrays

53 ProFiT: Sell Renewable Power Feed-in Tariff: A way for SCP to buy power from local businesses, developers, and entrepreneurs Larger than home array; 1 MW or less Adds to local power generation

54 SCP Results Lower rates Local economic boost ($6M) More choice & competition Greener power, lower GHGs Access to policy-makers (voice) Innovation platform 54

55 Thank you! Ann Hancock O: x112 M:

56 56 Today s Agenda Introduction and Overview Host Welcome Community Imperatives for Clean Energy Overview of Community Choice Energy in California Community Choice Energy in Practice Community Choice Energy from a Business Perspective Discussion/Feedback/Next Steps Joe Carroll, Project Manager/Facilities Engr, Keysight Technologies Julien Gervreau, Senior Sustainability Manager, Kendall Jackson Jason Simon, Director of Policy Strategy, Enphase Energy Lunch and Table Networking Closing

57 A Brief History of Keysight : The Hewlett-Packard years A company founded on electronic measurement innovation Our Roots are in Silicon Valley We share DNA as leaders, risk takers, innovators within our industries : The Agilent Technologies years Spun off from HP, Agilent became the World s Premier Measurement Company In September 2013, announced the spin off its electronic measurement business 2014: Keysight begins operations Focused 100% on electronic measurement industry Page

58 Keysight at a Glance REVENUE IN FY13 $2.9 billion (more than 60% generated outside the U.S.) EMPLOYEES 9,500 PRESIDENT and CEO Ron Nersesian GLOBAL HEADQUARTERS Santa Rosa, California CUSTOMER LOCATIONS 100+ countries MANUFACTURING AND R&D LOCATIONS U.S., Europe, Asia Pacific NYSE KEYS Page

59 Customers of Santa Rosa Businesses Leading manufacturers of: Mobile phones Cellular base stations Telecommunications networks Satellites Semiconductors Surveillance equipment Defense electronics Page 59

60 Opt In Decision Business rationale: The right Choice for Keysight Projected annual rate comparison at site current electrical power usage: PG&E -- $4.8 million Sonoma Clean Power -- $4.5 million Estimated annual savings -- ~$300,000 Electricity from SCP cleaner (higher percentage of renewable energy sources) than PG&E, supporting Agilent s approach to sustainability. Reduces carbon footprint & green house gases. Purchasing electricity from SCP will not impact site business continuity; power transmission/distribution will still be provided by PG&E. Rate structure is more stable than PG&E, improving budget forecasting. Billing process remains the same. Decision to support our local community and lead by example. Page

61 Lessons Learned...a few wrinkles PG&E with Sonoma Clean Power provided a detailed analysis to support our decision. $6,000,000 Rate Comparison Decision is reversible $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 PCIA/FF Fee Transmission and Distribution Charge Generation Charges You must understand PG&E Rate Structures (& increase notification) Tariffs, Demand Charges, Hidden Fees Opt in / Opt Out clauses & penalties. $- PG&E SCP All are more complicated if you have multiple meters & addresses. Page

62 Before PG&E was our partner in Transmission, Delivery & Power. Maintaining Status Quo Zero Business Interruption. After PG&E is still our partner! Transmission & Delivery. Sonoma Clean Power provides the power. Spurs competition & innovation in our community.. Choice Zero interruption to our business. Keysight PG&E Power Sonoma Clean Power PG&E T&D Keysight Page

63 Be First - Think Globally, Act Locally Sustainability Community Support Local Technology Page

64 64 Today s Agenda Introduction and Overview Host Welcome Community Imperatives for Clean Energy Overview of Community Choice Energy in California Community Choice Energy in Practice Community Choice Energy from a Business Perspective Discussion/Feedback/Next Steps Joe Carroll, Project Manager/Facilities Engr, Keysight Technologies Julien Gervreau, Senior Sustainability Manager, Kendall Jackson Jason Simon, Director of Policy Strategy, Enphase Energy Lunch and Table Networking Closing

65 Enphase CCE Business Forum Presentation Jason Simon Director of Policy Strategy

66 Enphase In California Over 550 employees worldwide, 400 in Petaluma and Santa Clara All design and test facilities + limited manufacturing in CA, operating 24 hours a day Develop energy management systems for the residential and commercial solar industry Mission is to scale solar to 100% of demand Recipient of 2014 Global Frost & Sullivan Award for Technology Leadership Enphase Energy, Inc.

67 Enphase Energy Management System Enphase Energy, Inc.

68 Rapid Global Adoption More than 200,000 systems (7M units) = >1GW Enphase Energy, Inc.

69 The Benefit of CCAs Better for the environment Local job creation Increased customer choice Lower overall energy costs Enphase Energy, Inc.

70 70 Today s Agenda Introduction and Overview Host Welcome Community Imperatives for Clean Energy Overview of Community Choice Energy in California Community Choice Energy in Practice Community Choice Energy from a Business Perspective Discussion/Feedback/Next Steps Joe Carroll, Project Manager/Facilities Engr, Keysight Technologies Julien Gervreau, Senior Sustainability Manager, Kendall Jackson Jason Simon, Director of Policy Strategy, Enphase Energy Lunch and Table Networking Closing

71 71 Today s Agenda Introduction and Overview Host Welcome Community Imperatives for Clean Energy Overview of Community Choice Energy in California Community Choice Energy in Practice Community Choice Energy from a Business Perspective Discussion/Feedback/Next Steps Melody Tovar, City of Sunnyvale Lunch and Table Networking Closing

72 72 Today s Agenda Introduction and Overview Host Welcome Community Imperatives for Clean Energy Overview of Community Choice Energy in California Community Choice Energy in Practice Community Choice Energy from a Business Perspective Discussion/Feedback/Next Steps Lunch and Table Networking Ann Hancock, Executive Director, Business for Clean Energy Closing

73 Business Forum on Community Choice Energy for Silicon Valley Thank You! For more information, please contact: Melody Tovar, City of Sunnyvale (Lead) Elaine Marshall, City of Sunnyvale Erin Cooke, City of Cupertino Steve Attinger, City of Mountain View Demetra McBride