AGENDA SONOMA CLEAN POWER AUTHORITY JOINT MEETING RATEPAYER ADVISORY COMMITTEE BUSINESS OPERATIONS COMMITTEE TUESDAY, DECEMBER 17, 2013 9:30 A.M. 12:00 P.M. Hyatt Vineyard Creek Hotel Russian River Ballroom 170 Railroad Street, Santa Rosa, California I. CALL TO ORDER II. JOINT MEETING CALENDAR 1. Discussion and possible direction on how the Ratepayer Advisory and Business Operations Committees can best collaborate. 2. Presentation on the rate setting process in community choice programs, the basis for establishing rates and review of draft retail customer rates. 3. Presentation of the statutory noticing requirements and review draft enrollment letter content. 4. Agenda items for future meetings. III. IV. PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA (Comments are restricted to matters within the Committee jurisdiction. The Committee will hear public comments at this time for up to thirty minutes. Please be brief and limit your comments to three minutes. Any additional public comments will be heard at the conclusion of the meeting.) ADJOURN DISABLED ACCOMMODATION: If you have a disability which requires an accommodation, an alternative format, or requires another person to assist you while attending this meeting, please contact the Clerk at (707) 978-3463, as soon as possible to ensure arrangements for accommodation. NOTE: Minutes from the December 4, 2013 Ratepayer Advisory Committee meeting will be brought for approval at the January 8, 2014 meeting. Minutes from the November 18, 2013 Business Operations Committee meeting will be brought for approval at the January 21, 2014 meeting.
Staff Report To: From: Item: Sonoma Clean Power Authority Ratepayer Advisory and Business Operations Committees Geof Syphers Committee Collaboration for Ratepayer Advisory and Business Operations Committees Date: December 17, 2013 Requested Action: Discussion and possible direction on how the two SCPA committees can best collaborate and coordinate. Background The purpose, scope and function of the two SCPA committees is described in the Joint Powers Agreement. However, there is interest by some members of both committees to be more involved and to better coordinate. Areas that have been identified include Business Operations Committee input into matters within the scope of the Ratepayer Advisory Committee (e.g., the rate setting process), and Ratepayer Advisory Committee input into matters within the scope of the Business Operations Committee (e.g., contracts). The purpose of this discussion is to explore options for addressing this interest for better coordination.
Staff Report To: From: Sonoma Clean Power Authority Ratepayer Advisory and Business Operations Committees Geof Syphers Item: Draft Rates for 2014-2015 Fiscal Year Date: December 17, 2013 Requested Action: Provide feedback to staff on the proposed draft customer rates for power. Background The process for rate setting in a community choice aggregation (CCA) is different from the process for setting rates in a monopoly utility (e.g., with PG&E prior to SCP) or in a government program in which there is no ability to choose an alternative provider (e.g., a wastewater treatment district). This distinction along with the basis for rates and the proposed rate schedules is provided in the following materials. The purpose of this item is to gather input from the committee and the public on the proposed rates so that staff and consultants can bring a strong set of proposed final rate schedules to the January committee and board meetings for adoption.
MEMORANDUM TO: GEOF SYPHERS FROM: JOHN DALESSI, DMC SUBJECT: SCP PRELIMINARY RATES DATE: 12/11/13 INTRODUCTION DMC has prepared a preliminary set of SCP retail rates to be used as a starting point for discussions with the Ratepayer Advisory Committee and other stakeholders, leading to adoption of final Fiscal Year 2014-2015 SCP rates in January. The proposed rates observe the fundamental ratesetting requirement that the adopted SCP generation rates must be designed to recover all projected costs associated with operating the SCP program during the relevant time period for which rates are being designed. Based on current forecasts of enrolled customers, electricity sales, and program costs, including the costs associated with energy provided under the Constellation and Calpine contracts, the preliminary rate proposal is to set SCP generation rates to allow for a 5% discount for SCP customers relative to the comparable PG&E proposed 2014 generation rates. These proposed SCP generation rates are predicted to recover all program costs for the 2014-2015 fiscal year and yield sufficient reserves to facilitate rate stability over a longer time period as additional customer phases are enrolled. METHODOLOGY The accompanying document contains the proposed SCP generation rates for each applicable rate schedule and provides a comparison to the equivalent PG&E generation rate. To facilitate cost comparisons, the SCP generation rate is also shown with the addition of the PG&E customer surcharges (Power Charge Indifference Adjustment and Franchise Fee Surcharge) that PG&E will impose directly on SCP customers bills. 1 Comparing the PG&E Generation rates with the SCP generation rate plus PG&E surcharges allows for a bottom line comparison to be made, including the impact of the applicable PG&E surcharges. For purposes of the preliminary rate design, each component of the PG&E Generation rate was reduced by 5% and the PG&E customer surcharges were subtracted, yielding the SCP generation rate. The resulting SCP generation rates allow for the participating customer s generation cost to be reduced despite the imposition of the PG&E customer surcharges. This rate design approach has the advantages of easy comparability and ease of 1 PG&E proposed 2014 generation rates and the applicable PCIA and FF surcharges are set forth in PG&E Advice Letter 4278-E, dated August 30, 2013.
customer communications in that the generation cost discount is the same, on a percentage basis, for all potential customers. 2 Such comparability will ease the transition for customers to SCP service and ensure similar rate benefits are obtained by all participating customers. Note that the savings on total electric charges will vary because of the wide variation in transmission and distribution charges, including the residential tiered rates. In future ratesetting cycles, it may be desirable to evaluate other potential rate designs that may include: 1) simplification in terms of the number of different rate schedules offered and the variety of charges contained within each rate schedule; 2) adjustments to demand charges with offsetting changes to energy charges; 3) adjustments to specific charges to ensure alignment with SCP s cost structure; or 4) addition of new rate options designed to encourage local policy objectives. 100% RENEWABLE ENERGY OPTION The proposed rate for the 100% renewable energy option is designed based on the costs of supplying energy from local renewable generation sources and would add an additional per kwh charge to the bills of customers selecting this option. The proposed charge is equivalent to the per unit cost difference between locally produced renewable energy and the energy mix supplying SCP s 33% renewable energy/70% carbon free content. This premium is calculated to be $0.035 per kwh. NET ENERGY METERING OPTION Net Energy Metering ( NEM ) is a service option administered by electric utilities, including SCP, to address energy produced by customer-sited, small-scale renewable generating projects that have been designed with the primary purpose of offsetting the customer-generator s typical energy use. NEM service options have a direct impact on the development of such renewable generators by providing certain rate-related signals that change the overall economics of these locally situated projects. Primarily, NEM addresses the scenario that exists when customer-sited renewable generators produce more energy than they use, spinning the meter backwards. In such instances, the utility must determine the manner in which the customer-generator will be credited for the power that it supplies back to the grid (which marginally reduces energy quantities that must be purchased by SCP from other sources) SCP s preliminary draft NEM tariff, Electric Schedule NEM, addresses this situation and has been developed in an effort to balance a broad range of considerations affecting the customer, SCP, and the achievement of overall policy objectives, including ongoing development of customer-sited renewable generating capacity During the development of SCP s draft NEM tariff, staff reviewed and ultimately adopted Marin Clean Energy s ( MCE ) recently updated (December 2013) NEM documents. Over the past year, MCE spent a great deal of time debugging certain NEM billing and settlement issues with the cooperation of its data manager, Noble Americas Energy Solutions ( Noble ), and PG&E. SCP s draft NEM tariff reflects the development 2 Customers served under seasonal rate schedule RES-8 would see a larger cost reduction under the proposal to set these rates equivalent to the RES-1 rate schedule. The reason for this proposal is due to the extremely high generation rates charged on the PG&E equivalent E-8 rate schedule, which would far exceed SCP s cost of providing generation service to these customers. 2
of these procedural enhancements as well as technically feasible billing solutions. SCP s NEM tariff also utilizes similar language, where appropriate, to PG&E s Electric Schedule NEM, which should facilitate cross-referencing between the two documents while minimizing the need for ongoing administrative edits to SCP s tariff (to ensure consistency with certain key elements of PG&E s program and applicable state regulations). When SCP NEM customers produce more energy than they use, SCP will provide bill credits for any excess electric generation while PG&E will provide applicable credits for any distribution charges that may be reversed. The credit amounts and settlement processes that apply in such instances are independently determined by the two organizations. As such, SCP s NEM tariff is exclusively focused on the administration of charges and credits that may apply to the generation (or electric commodity) portion of the customer s bill. PG&E will continue to administer the application of all charges and credits related to transmission and distribution services as well as other mandated fees. As previously noted, SCP s NEM tariff balances a broad range of considerations that are intended to promote locally-situated, small-scale renewable project development without disproportionately affecting other customers. To the extent that NEM incentives are increased through rate design, a portion of related costs will be imposed on other (non- NEM) customers. As discussion evolves regarding the NEM service option, there are a few key features of this program that will need to be evaluated based on the relative impacts to different customer groups: Retention of customer bill credits: as drafted, bill credits accrued under SCP s NEM service option will not expire; this represents a key benefit relative to the PG&E tariff. Periodic cash out option: SCP s NEM tariff incorporates a mechanism that would allow customers to receive direct payments annually for any accrued credit balances above a threshold of $100; this also represents a benefit relative to the PG&E tariff. Treatment of customer credit balances following relocation, account closure and opt-out: the draft SCP tariff provides opportunities for customers to receive direct payments for accrued credit balances when these events occur. Applicable rates for excess NEM production: developing this important element of NEM service should, at a minimum, consider general impacts to local renewable project development, desired financial incentives (and related bill impacts), administrative complexity, and the relationship between surplus energy value and applicable rates. 3
SCP FY 2014 Test Year Revenue Requirement Explanatory Notes Revenue at Proposed PG&E Generation Rates $ 61,340,692 PG&E 2014 AET Filed Rates, Aug. 30, 2013. PG&E Customer Surcharges Power Charge Indifference Adjustment $ 6,623,506 PG&E 2014 AET Filed Rates, Aug. 30, 2013. Franchise Fee Surcharge $ 465,493 PG&E 2014 AET Filed Rates, Aug. 30, 2013. Total PG&E Customer Surcharges $ 7,089,000 SCP Revenue Requirement Power Supply Expenses $ 37,869,602 Shaped energy, renewable energy, resource adequacy, CAISO, losses. Inludes Constellation and Geysers contract supply/costs. Staffing, professional services, data management, PG&E fees, and general administration Other Operational Expenses $ 3,655,826 expenses. Debt Service $ 976,437 Required payments under FCB startup and working capital loans. Uncollectible Accounts $ 153,468 0.35% of annual receivables per SCP Policy No. 2. Debt Retirement $ 5,000,000 Additional principal payments. Contingency Reserve/Rate Stabilization $ 3,500,629 Addresses forecast uncertainty and ensures maintenance of required debt service coverage ratio. Total SCP Revenue Requirement $ 51,155,962 Total annual revenue to be recovered through SCP retail rates. SCP Customer Savings $ 3,095,730 Total reduction in customer energy costs. Customer Generation Rate Discount -5.0% Customer savings relative to PG&E Proposed 2014 Rates. PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY
SONOMA CLEAN POWER PRESENT AND FY 2014-15 PROPOSED RATES SCP PROPOSED PG&E PROPOSED SCP PROPOSED WITH PG&E GENERATION PG&E EQUIVALENT SCHEDULE SCP RATE SCHEDULE UNIT/PERIOD RATE SURCHARGES RATE RESIDENTIAL CUSTOMERS E-1, M, S, SR, T RES-1 All Energy 0.07500 0.08779 0.09256 EL-1 (CARE) RES-1-L All Energy 0.07500 0.08779 0.09256 E-6 RES-6 Summer Peak 0.21600 0.22879 0.24122 Summer Part Peak 0.09800 0.11079 0.11683 Summer Off-Peak 0.05000 0.06279 0.06629 Winter Partial Peak 0.06900 0.08179 0.08661 Winter Off-Peak 0.05700 0.06979 0.07323 EL-6 (CARE) RES-6-L Summer Peak 0.21600 0.22879 0.24122 Summer Part Peak 0.09800 0.11079 0.11683 Summer Off-Peak 0.05000 0.06279 0.06629 Winter Partial Peak 0.06900 0.08179 0.08661 Winter Off-Peak 0.05700 0.06979 0.07323 E-7 RES-7 Summer Peak 0.42400 0.43679 0.46011 Summer Off-Peak 0.06400 0.07679 0.08045 Winter Peak 0.27100 0.28379 0.29904 Winter Off-Peak 0.03900 0.05179 0.05472 PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY Page 1 of 12 December 6, 2013
SONOMA CLEAN POWER PRESENT AND FY 2014-15 PROPOSED RATES SCP PROPOSED PG&E PROPOSED SCP PROPOSED WITH PG&E GENERATION PG&E EQUIVALENT SCHEDULE SCP RATE SCHEDULE UNIT/PERIOD RATE SURCHARGES RATE EL-7 (CARE) RES-7-L Summer Peak 0.42400 0.43679 0.46011 Summer Off-Peak 0.06400 0.07679 0.08045 Winter Peak 0.27100 0.28379 0.29904 Winter Off-Peak 0.03900 0.05179 0.05472 E-8 RES-8 Summer 0.07500 0.08779 0.19532 Winter 0.07500 0.08779 0.12896 EL-8 (CARE) RES-8-L Summer 0.07500 0.08779 0.19532 Winter 0.07500 0.08779 0.12896 E-9 RES-9 Summer Peak 0.17900 0.19179 0.20167 Summer Part Peak 0.10800 0.12079 0.12757 Summer Off-Peak 0.05800 0.07079 0.07405 Winter Partial Peak 0.08800 0.10079 0.10585 Winter Off-Peak 0.04400 0.05679 0.0603 EV RES-EV Summer Peak 0.19400 0.20679 0.21825 Summer Part Peak 0.08700 0.09979 0.10519 Summer Off-Peak 0.03700 0.04979 0.05286 Winter Peak 0.06500 0.07779 0.08156 Winter Partial Peak 0.03600 0.04879 0.05095 Winter Off-Peak 0.03900 0.05179 0.05474 PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY Page 2 of 12 December 6, 2013
SONOMA CLEAN POWER PRESENT AND FY 2014-15 PROPOSED RATES SCP PROPOSED PG&E PROPOSED SCP PROPOSED WITH PG&E GENERATION PG&E EQUIVALENT SCHEDULE SCP RATE SCHEDULE UNIT/PERIOD RATE SURCHARGES RATE COMMERCIAL, INDUSTRIAL AND GENERAL SERVICE CUSTOMERS A-1 COM-1 0.10100 0.11232 0.11791 WINTER 0.06100 0.07232 0.07629 A-1 TOU COM-1-TOU PEAK 0.12000 0.13132 0.13810 PART-PEAK 0.11100 0.12232 0.12924 OFF-PEAK 0.08600 0.09732 0.10226 WINTER PART-PEAK 0.07100 0.08232 0.08623 OFF-PEAK 0.05200 0.06332 0.06692 A-6 COM-6 PEAK 0.30900 0.32032 0.33690 PART-PEAK 0.11900 0.13032 0.13752 OFF-PEAK 0.05000 0.06132 0.06413 WINTER PART-PEAK 0.08100 0.09232 0.09708 OFF-PEAK 0.04800 0.05932 0.06263 A-10-A COM-10-A 0.08900 0.10123 0.10674 WINTER 0.06700 0.07923 0.08313 DEMAND CHARGE ($/KW) MAX 3.90 3.90000 4.17 - PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY Page 3 of 12 December 6, 2013
SONOMA CLEAN POWER PRESENT AND FY 2014-15 PROPOSED RATES SCP PROPOSED PG&E PROPOSED SCP PROPOSED WITH PG&E GENERATION PG&E EQUIVALENT SCHEDULE SCP RATE SCHEDULE UNIT/PERIOD RATE SURCHARGES RATE A-10-B COM-10-B PEAK 0.10500 0.11723 0.12383 PART-PEAK 0.09800 0.11023 0.11609 OFF-PEAK 0.07600 0.08823 0.09257 WINTER PART-PEAK 0.07700 0.08923 0.09349 OFF-PEAK 0.05700 0.06923 0.07331 DEMAND CHARGE ($/KW) MAX 3.90 3.90000 4.17 E-19-S, V COM-19-S PEAK 0.12200 0.13206 0.13894 PART-PEAK 0.07300 0.08306 0.08757 OFF-PEAK 0.04100 0.05106 0.05392 WINTER PART-PEAK 0.06700 0.07706 0.08075 OFF-PEAK 0.04500 0.05506 0.05777 DEMAND CHARGE ($/KW) PEAK 12.40 12.40000 13.04 PART-PEAK 2.70 2.70000 2.82 - E-19-P, V COM-19-P PEAK 0.11000 0.12006 0.12640 PART-PEAK 0.06800 0.07806 0.08182 OFF-PEAK 0.04200 0.05206 0.05527 WINTER PART-PEAK 0.06300 0.07306 0.07679 OFF-PEAK 0.04500 0.05506 0.05845 DEMAND CHARGE ($/KW) PEAK 12.80 12.80000 13.50 PART-PEAK 2.50 2.50000 2.61 - PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY Page 4 of 12 December 6, 2013
SONOMA CLEAN POWER PRESENT AND FY 2014-15 PROPOSED RATES SCP PROPOSED PG&E PROPOSED SCP PROPOSED WITH PG&E GENERATION PG&E EQUIVALENT SCHEDULE SCP RATE SCHEDULE UNIT/PERIOD RATE SURCHARGES RATE PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY Page 5 of 12 December 6, 2013
SONOMA CLEAN POWER PRESENT AND FY 2014-15 PROPOSED RATES SCP PROPOSED PG&E PROPOSED SCP PROPOSED WITH PG&E GENERATION PG&E EQUIVALENT SCHEDULE SCP RATE SCHEDULE UNIT/PERIOD RATE SURCHARGES RATE E-19-T, V COM-19-T PEAK 0.05800 0.06806 0.07118 PART-PEAK 0.05300 0.06306 0.06673 OFF-PEAK 0.03900 0.04906 0.05120 WINTER PART-PEAK 0.05200 0.06206 0.06516 OFF-PEAK 0.04000 0.05006 0.05284 DEMAND CHARGE ($/KW) PEAK 15.50 15.50000 16.32 PART-PEAK 3.40 3.40000 3.61 - E-20-S COM-20-S PEAK 0.11000 0.11945 0.12556 PART-PEAK 0.06900 0.07845 0.08232 OFF-PEAK 0.04200 0.05145 0.05381 WINTER PART-PEAK 0.06300 0.07245 0.07618 OFF-PEAK 0.04300 0.05245 0.05496 DEMAND CHARGE ($/KW) PEAK 12.20 12.20000 12.83 PART-PEAK 2.50 2.50000 2.60 - E-20-P COM-20-P PEAK 0.11100 0.12003 0.12599 PART-PEAK 0.06900 0.07803 0.08196 OFF-PEAK 0.04400 0.05303 0.05621 WINTER PART-PEAK 0.06400 0.07303 0.07699 OFF-PEAK 0.04800 0.05703 0.06021 DEMAND CHARGE ($/KW) PEAK 11.80 11.80000 12.46 PART-PEAK 2.20 2.20000 2.28 PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY Page 6 of 12 December 6, 2013
SONOMA CLEAN POWER PRESENT AND FY 2014-15 PROPOSED RATES SCP PROPOSED PG&E PROPOSED SCP PROPOSED WITH PG&E GENERATION PG&E EQUIVALENT SCHEDULE SCP RATE SCHEDULE UNIT/PERIOD RATE SURCHARGES RATE - PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY Page 7 of 12 December 6, 2013
SONOMA CLEAN POWER PRESENT AND FY 2014-15 PROPOSED RATES SCP PROPOSED PG&E PROPOSED SCP PROPOSED WITH PG&E GENERATION PG&E EQUIVALENT SCHEDULE SCP RATE SCHEDULE UNIT/PERIOD RATE SURCHARGES RATE E-20-T COM-20-T PEAK 0.07200 0.07997 0.08387 PART-PEAK 0.05400 0.06197 0.06533 OFF-PEAK 0.03900 0.04697 0.04981 WINTER PART-PEAK 0.05500 0.06297 0.06672 OFF-PEAK 0.04300 0.05097 0.05385 DEMAND CHARGE ($/KW) PEAK 15.30 15.30000 16.13 PART-PEAK 3.30 3.30000 3.50 - PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY Page 8 of 12 December 6, 2013
SONOMA CLEAN POWER PRESENT AND FY 2014-15 PROPOSED RATES SCP PROPOSED PG&E PROPOSED SCP PROPOSED WITH PG&E GENERATION PG&E EQUIVALENT SCHEDULE SCP RATE SCHEDULE UNIT/PERIOD RATE SURCHARGES RATE AGRICULTURAL CUSTOMERS AG-1-A AG-1-A DEMAND CHARGE ($/KW) 0.08400 0.09515 0.10068 WINTER 0.06500 0.07615 0.0805 MAX 1.40 1.40000 1.44 WINTER MAX 0.00 - - AG-1-B AG-1-B DEMAND CHARGE ($/KW) 0.08500 0.09615 0.10154 WINTER 0.06400 0.07515 0.07888 MAX 0.06 0.06400 2.15 WINTER MAX 0.00 - - AG-4-A AG-4-A PEAK 0.14100 0.15215 0.16034 OFF-PEAK 0.05400 0.06515 0.06852 WINTER PART-PEAK 0.05800 0.06915 0.07268 OFF-PEAK 0.04700 0.05815 0.06175 CONNECTED LOAD ($/HP) 1.30 1.30000 1.43 WINTER 0.00 - - AG-4-B AG-4-B PEAK 0.10300 0.11415 0.12053 OFF-PEAK 0.05500 0.06615 0.06943 WINTER PART-PEAK 0.05300 0.06415 0.06767 OFF-PEAK 0.04300 0.05415 0.0574 DEMAND CHARGE ($/KW) PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY Page 9 of 12 December 6, 2013
SONOMA CLEAN POWER PRESENT AND FY 2014-15 PROPOSED RATES SCP PROPOSED PG&E PROPOSED SCP PROPOSED WITH PG&E GENERATION PG&E EQUIVALENT SCHEDULE SCP RATE SCHEDULE UNIT/PERIOD RATE SURCHARGES RATE MAX 2.30 2.30000 2.45 PEAK 2.40 2.40000 2.53 WINTER - - PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY Page 10 of 12 December 6, 2013
SONOMA CLEAN POWER PRESENT AND FY 2014-15 PROPOSED RATES SCP PROPOSED PG&E PROPOSED SCP PROPOSED WITH PG&E GENERATION PG&E EQUIVALENT SCHEDULE SCP RATE SCHEDULE UNIT/PERIOD RATE SURCHARGES RATE AG-5-A AG-5-A PEAK 0.12900 0.14015 0.14807 OFF-PEAK 0.05800 0.06915 0.07257 WINTER PART-PEAK 0.06100 0.07215 0.07608 OFF-PEAK 0.05000 0.06115 0.06469 CONNECTED LOAD ($/HP) 3.60 3.60000 3.76 WINTER 0.00 - AG-5-B AG-5-B PEAK 0.12600 0.13715 0.14415 OFF-PEAK 0.03400 0.04515 0.04764 WINTER PART-PEAK 0.05300 0.06415 0.06775 OFF-PEAK 0.02600 0.03715 0.03933 DEMAND CHARGE ($/KW) MAX 4.30 4.30000 4.53 PEAK 5.20 5.20000 5.54 WINTER - - - AG-5-C AG-5-C PEAK 0.10100 0.11215 0.11775 PART-PEAK 0.05300 0.06415 0.06746 OFF-PEAK 0.03500 0.04615 0.04874 WINTER PART-PEAK 0.04000 0.05115 0.05435 OFF-PEAK 0.03200 0.04315 0.04583 DEMAND CHARGE ($/KW) PEAK 9.70 9.70000 10.19 PART PEAK 1.80 1.80000 1.92 PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY Page 11 of 12 December 6, 2013
SONOMA CLEAN POWER PRESENT AND FY 2014-15 PROPOSED RATES SCP PROPOSED PG&E PROPOSED SCP PROPOSED WITH PG&E GENERATION PG&E EQUIVALENT SCHEDULE SCP RATE SCHEDULE UNIT/PERIOD RATE SURCHARGES RATE WINTER - - - STREET AND OUTDOOR LIGHTING LS-1, LS-2, LS-3, OL-1 SL-1 0.07700 0.07925 0.08385 TC-1 TC-1 0.06600 0.07732 0.08103 100% RENEWABLE OPTION Customers electing the 100% Local Renewable service option will pay the otherwise applicable SCP rate plus the 100% Renewable Energy Charge. 0.03500 PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY Page 12 of 12 December 6, 2013
Sonoma Clean Power FY 2014-2015 Cost of Voluntary 100% Renewable Energy Option $/MWh Cost of Local Renewable Energy (Baseload) 80.00 Less Energy Costs Included in Standard Tariff Shaped Energy @43.29 $/MWh X.9 Baseload Adjustment Factor 38.94 Renewable Energy Premium @ 33% Standard Renewable Content 6.29 Total of Comparable Energy Costs Included in Standard Tariff 45.23 Voluntary 100% Renewable Energy Tariff Cost Premium 34.77 Voluntary 100% Renewable Energy Tariff Cost Premium ($/KWh) 0.035 PRELIMINARY DRAFT FOR DISCUSSION PURPOSES ONLY
ELECTRIC SCHEDULE NEM - NET ENERGY METERING SERVICE APPLICABILITY: This net energy metering (NEM) schedule is applicable to a customer who uses an eligible Renewable Electrical Generation Facility, as defined in PG&E s Electric Schedule NEM (http://www.pge.com/tariffs/ers.shtml#ers), within the capacity limits described in PG&E s Electric Schedule NEM that is located on the customer s owned, leased, or rented premises, is interconnected and operates in parallel with PG&E s transmission and distribution systems, and is intended primarily to offset part or all of the customer s own electrical requirements (hereinafter eligible customer-generator or customer ). The NEM schedule is available on a first-come, first-served basis, subject to the participatory limit(s) established in PG&E Electric Schedule NEM (the participatory limit ), to customers that satisfy all necessary application, interconnection and inspection requirements (as described in PG&E Electric Schedule NEM). This NEM schedule also applies to customers served under NEMV (Virtual Net Energy Metering), NEMVMASH (Virtual Net Energy Metering for Multifamily Affordable Housing), NEMA (NEM Aggregation) and Multiple Tariff facilities as described by PG&E Electric Schedule NEM. Once the participatory limit has been reached, this NEM schedule will be closed to new customers. TERRITORY: The entire SCP service area. RATES: All rates charged under this NEM schedule will be in accordance with the eligible customer-generator s otherwise-applicable SCP rate schedule (OAS). An eligible customer-generator served under this NEM schedule is responsible for all charges associated with its OAS, including monthly minimum charges, customer charges, meter charges, facilities charges, demand charges and surcharges, and all other charges owed to SCP or PG&E any applicable PG&E charges will be addressed in a corresponding tariff (http://www.pge.com/tariffs/ers.shtml#ers). Charges for energy (kwh) supplied by SCP, will be based on net metered usage in accordance with this NEM schedule. BILLING: Customers with NEM service will be billed by SCP as follows: a) For a customer with Non-Time of Use (TOU) Rates: The cost/(credit) associated with any net usage/(production) during the customer s normal billing cycle shall be determined as follows:
If the eligible customer-generator is a Net Consumer, as determined by usage exceeding production during a discrete billing cycle, the eligible customer-generator will be billed in accordance with the eligible customergenerator s OAS. If the eligible customer-generator is a Net Generator, as determined by production exceeding usage during a discrete billing cycle, the net energy production shall be valued in consideration of the customer-generator s OAS plus a NEM production premium of $0.01/kWh. The value of all net energy production during the billing cycle shall be credited to SCP customers as described in Section (c). b) For a customer with TOU Rates: If the eligible customer-generator is a Net Consumer (as defined above) during any discrete TOU period, the net kwh consumed during such period shall be billed in accordance with the eligible customer-generator s OAS. If the eligible customer-generator is a Net Generator (as defined above) during any discrete TOU period, net energy production during each TOU period shall be valued in consideration of the eligible customer-generator s OAS plus a NEM production premium of $0.01/kWh, applying OAS rates to the quantity of energy produced within each TOU period. The value of all net energy production during the billing cycle shall be credited to SCP customers as described in Section (c). c) Monthly Settlement of SCP Charges/Credits: NEM customers will receive a statement in their monthly PG&E bills indicating any accrued charges for usage during the billing cycle. Customers who have accrued credits during previous billing cycles will see these credits applied against current charges. Any remaining balance will be due and must be paid in consideration of the due date and remittance advice reflected on each PG&E bill. When a customer s net energy production results in a net bill credit during any billing cycle, the value of any net energy production during the billing cycle shall be noted on the customer s bill and carried over as a bill credit for use in subsequent billing period(s). 2
d) SCP Annual Cash-Out: During the April billing cycle of each year, all current SCP NEM customers with a credit balance greater than $100 will be offered a direct payment option as compensation for the accrued credit balance this payment will be made by check issued from SCP to the customer; any credit balance will be determined as of the final date of the customer s March billing cycle. Customers who participate in the SCP Cash-Out process will have an equivalent credit removed from their NEM account balance at the time of check issuance. In the event that customers do not elect to receive a check for accrued NEM credits, such credits will continue to be tracked by SCP and will remain on the customer s account for future use (i.e., reduction of future SCP charges). Customers who close their electric account through PG&E or move outside of the SCP service area prior to the April billing cycle of each year are also eligible for the annual SCP Cash-Out process. e) Return to PG&E Bundled Service: SCP customers with NEM service may opt out and return to PG&E bundled service at any time. Customers should be advised that PG&E will perform a true-up of their account at the time such customers return to PG&E bundled service. As described in PG&E Electric Rule 23 (http://www.pge.com/tariffs/er.shtml#er ), certain SCP customers returning to PG&E service may receive Transitional Bundled Service (TBS) for a limited period of time; TBS will expose such customers to various market price risks please review PG&E s applicable electric rules and tariffs for additional information. If an SCP NEM customer opts-out of the SCP program and returns to bundled service, that customer may request the direct payment option, described above in Section (d), for any generation credits that remain on the account, provided that such request is received by SCP within 90 calendar days of the customer s return to PG&E service. f) PG&E NEM Services: SCP NEM customers are subject to PG&E s terms, conditions and billing procedures for any non-generation services, as described in PG&E s Electric Schedule NEM and related PG&E tariff options addressing NEM service. 3
Customers should be advised that while SCP reconciles payment/credit balances for generation on a monthly basis, PG&E will continue to assess charges for delivery, transmission and other services. Most NEM customers will receive an annual true-up from PG&E for these non-generation services. Customers are encouraged to review PG&E s most up-to-date NEM tariffs, which are available on PG&E s website: http://www.pge.com/tariffs/ers.shtml#ers. 4
Staff Report To: From: Sonoma Clean Power Authority Ratepayer Advisory and Business Operations Committees Geof Syphers Item: Draft Enrollment Notices Date: December 17, 2013 Requested Action: Provide feedback to staff on the proposed draft enrollment notices. Background The enrollment process is our first opportunity to directly communicate with customers. In Phase 1, we are enrolling approximately 20,000 customers, 14,000 commercial and 6,000 residential. Service for Phase 1 customers begins in May 2014. Regulations and laws set forth in in AB 117, PG&E Electric Rule 23, and CPUC Code Section 366.2 govern our noticing of customers. These regulations and laws require that customers be notified twice within 60 days prior to the start of service and twice during the first 60 days of service. Because PG&E takes 30 days to perform the service cutover, the actual schedule for Phase 1 customers is: February 1-7, 2014 March 1-7, 2014 April 1-30, 2014 May 1-31, 2014 Receive first enrollment notice (letter) Receive second enrollment notice (large format postcard) PG&E Service initiation process SCP service begins for Phase 1 customers, and receive third enrollment notice (letter)
June 1-30, 2014 Receive fourth and final enrollment notice (large format postcard) The first notice will be a detailed letter about the SCP program, including our terms and conditions of service. The letter will be in English and Spanish. The second notice will be an oversized postcard with less information, designed to attract the attention of people who may have missed the original letter. The third notice will be the same detailed letter with terms and conditions. The fourth and final notice will be another oversized postcard with simplified information. The use of a combination of letters and oversized postcards is designed to maximize the likelihood that customers will be aware of their opt-out rights. Sonoma Clean Power s logo and colors will be used to identify the program, and a series of high-profile marketing efforts will coincide with the enrollment letter process to further enhance the program s name recognition and public awareness. This will include print ads, radio, outdoor advertising and public talks and events. It is our responsibility to let Phase 1 customers know they are being enrolled in our CleanStart 33% renewable product, and to offer them the opportunity to opt out of the program or choose EverGreen, our 100% local, 100% renewable product. All enrollment notice letters will be mailed out in English and Spanish to commercial and residential customers. The oversized postcards will be printed in English with a short statement in Spanish prompting the recipient to call the tollfree number for more information. There are Spanish-speaking customer service representatives in the call center that customers can reach via the IVR (phone tree) when they call in. The Opt Out and Opt Up pages of the website will be available in English and Spanish. Other languages will be handled via Google Translate on the website and by third party translators through the call center. There are two basic types of Enrollment Letters: one for residential customers and one for all other customers (including commercial, industrial, non-profit, government and agricultural). Utilities sometime refer to the nonresidential category as commercial despite the inclusion of these other types of customers. Within each type there are categories (and combinations of categories) including 2
Discounted, Net Energy Metering (NEM), and Balanced Payment Plan (BPP). Enrollment Postcards are the same for all groups. 3
DRAFT COMMERCIAL CUSTOMER ENROLLMENT LETTER February 1, 2014 <ACCOUNT HOLDER NAME> <ADDRESS 1> <ADDRESS 2> <CITY><STATE>><ZIP> Sonoma Clean Power is your new local renewable electricity choice! Dear {CUSTOMER}, We are pleased to inform you that your electric account(s) will be enrolled in Sonoma Clean Power s CleanStart 33% renewable energy service in May 2014, unless you choose to opt out and continue to receive electricity from PG&E. Sonoma Clean Power (SCP) is not- for- profit public agency and electricity provider, and offers you the choice of having more of your electricity supplied from clean, renewable sources at stable and affordable rates. The choice is yours: If you take no action, you will be enrolled in SCP CleanStart 33% renewable service at a slightly lower price than you pay now. Your electric account(s) will be transferred to SCP s CleanStart service in May 2014 on your regularly scheduled meter read date. You may also elect to enroll in SCP EverGreen 100% local renewable power service, for a premium of about 20% of your total power charges. This option is for those who want to help create a clean energy economy today. You may also opt out of Sonoma Clean Power and continue to receive PG&E s 20% renewable energy service. To opt out, call 1 (XXX) XXX- XXXX or visit www.sonomacleanpower.org. Have your PG&E bill on hand because we ll need your account information to process your request. If you choose SCP, PG&E will continue to read your meter, send your bill and provide the same power line maintenance and repair services they always have. The only difference is that with Sonoma Clean Power you can choose to purchase one- third (or with our EverGreen 100% renewable service, all) of your electricity from 1
clean, renewable sources such as solar, wind and geothermal, compared to only 20% renewable electricity from PG&E. You can expect to pay similar rates for SCP CleanStart with 33% renewable energy compared to PG&E s 20% renewable energy. Today, we are able to offer a small discount of about 2½% of your total power bill for this product. To see how choosing SCP will impact your bill based on your monthly usage, visit www.sonomacleanpower.org/rates (TBD) or call us at 1 (XXX) XXX- XXXX. (For NEM Commercial Customers) We also offer one of the best Net Energy Metering (NEM) programs in California. That s because we pay premium rates (retail generation rate plus $0.01 per kilowatt- hour) for any excess electricity that your solar panels produce over a billing period. Excess generation credits roll over month after month and are paid out on an annual basis if they are $100 or more. Plus, your credits will never zero out with SCP. PG&E bills NEM customers annually, but SCP will provide our true- up every month, so that customers can better track their solar performance. This means that your charges and credits for electric generation will be done monthly, but you will still get your annual charges and credits from PG&E once per year. If you become an SCP customer, PG&E will true- up your account at the time of your SCP enrollment. When PG&E performs the true- up you will receive your bill from PG&E for all of the electric charges incurred since your previous annual true- up. If you are already a Net Energy Metering customer with PG&E and switch to Sonoma Clean Power, your account will automatically be enrolled in our Net Energy Metering program. You won t have to do anything to get started. (For BPP Commercial Customers) If you use the Balanced Payment Plan (BPP) option with PG&E, you will continue to receive your gas and electric delivery charges from PG&E in the BPP form. However, your electric generation charges from SCP will not be included as part of the BPP and will vary from month to month depending on your usage. Therefore, you will see some variance on your monthly bills. SCP is currently working on implementing a BPP program for its charges as well. (For Discounted BPP Commercial Customers: Include Discounted paragraph followed 2
by BPP paragraph.) (For Discounted NEM Commercial Customers: Include the Discounted paragraph followed by the four NEM paragraphs.) (For BPP NEM Commercial Customers: Include the BPP paragraph followed by the four NEM paragraphs.) (For Discounted BPP NEM Commercial Customers: Include Discounted paragraph followed by BPP paragraph followed by four NEM paragraphs.) (The following is for all commercial customers) At Sonoma Clean Power, we believe competition is healthy for the marketplace. That s why we provide an alternative greener, local product at a competitive price. More and more consumers are looking for products sold by businesses that value local customers and the environment. If you choose SCP, we can help promote your business as a local, green leader and encourage the thousands of people in our network to thank you through their trade. As a not- for- profit public agency, SCP will reinvest money in Sonoma County to develop local renewable power sources and support local jobs. That s why, out of the gate, we are offering our EverGreen product using 100% locally produced renewable power. As we grow, we will develop local energy efficiency programs and renewable power sources to continue to support our community. Starting in May, you will begin receiving cleaner power from SCP at a slightly lower price, unless we hear from you. California law makes SCP the default service in jurisdictions that have chosen to participate, because of the significant benefits SCP provides. This means you will be enrolled with SCP CleanStart in May 2014 unless you call or contact us online to opt out, or choose to opt- up to SCP EverGreen 100% local renewable power. It s your choice. Based in Santa Rosa, Sonoma Clean Power is a public agency governed by a Board of Directors made of local, elected representatives from Sonoma County and the participating cities of Sonoma, Santa Rosa, Cotati, Windsor and Sebastopol. For more information about SCP, to opt out, or to choose our EverGreen program: please call us at 1 (XXX) XXX- XXXX or visit www.sonomacleanpower.org. 3
SONOMA CLEAN POWER TERMS AND CONDITIONS OF SERVICE (The entire document also in Spanish and printed on the same paper with the same design and color treatment.) 4
DRAFT RESIDENTIAL CUSTOMER ENROLLMENT LETTER February 1, 2014 <ACCOUNT HOLDER NAME> <ADDRESS 1> <ADDRESS 2> <CITY><STATE>><ZIP> Sonoma Clean Power is your new local renewable electricity choice! Dear {CUSTOMER}, We are pleased to inform you that your electric account(s) will be enrolled with Sonoma Clean Power s CleanStart 33% renewable energy service in May 2014, unless you choose to opt out and continue to receive electricity from PG&E. Sonoma Clean Power (SCP) is a not-forprofit public agency and electricity provider, and offers you the choice of having more of your electricity supplied from clean, renewable sources at stable and affordable rates. The choice is yours: If you take no action, you will be enrolled in SCP CleanStart 33% renewable service at a slightly lower price than you pay now. Your electric account(s) will be transferred to SCP s CleanStart service in May 2014 on your regularly scheduled meter read date. You may also elect to enroll in SCP EverGreen 100% local renewable power service, for a premium of about 20% of your total power charges. This option is for those who want to help create a clean energy economy today. You may also opt out of Sonoma Clean Power and continue to purchase PG&E s 20% renewable energy service. To opt out, call 1 (XXX) XXX-XXXX or visit www.sonomacleanpower.org. Have your PG&E bill on hand because we ll need your account information to process your request. 1
If you choose SCP, PG&E will continue to read your meter, send your bill and provide the same power line maintenance and repair services they always have. The only difference is that with Sonoma Clean Power you can choose to purchase one-third (or with our EverGreen 100% renewable service, all) of your electricity from clean, renewable sources such as solar, wind and geothermal, compared to only 20% renewable electricity from PG&E. You can expect to pay similar rates for SCP CleanStart with 33% renewable energy compared to PG&E s 20% renewable energy. Today, we are able to offer a small discount of about 2½% of your total power bill for this product. To see how choosing SCP will impact your bill based on your monthly usage, visit www.sonomacleanpower.org/rates (TBD) or call us at 1 (XXX) XXX-XXXX. (For Discounted Residential Customers the following paragraph) Customers enrolled with SCP will continue to receive their full discounts from programs like CARE (California Alternative Rates for Energy), FERA (Federal Electric Rate Assistance), and Medical Baseline Allowance. The Low Income Home Energy Assistance Program (LIHEAP) is also available to SCP customers. There is no change to these programs for SCP customers and no need to fill out new or additional forms. If you are enrolled in any of these programs with PG&E, you will continue to be enrolled if you choose SCP. (For NEM Residential Customers) We also offer one of the best Net Energy Metering (NEM) programs in California. That s because we pay premium rates (retail generation rate plus $0.01 per kilowatt-hour) for any excess electricity that your solar panels produce over a billing period. Excess generation credits roll over month after month and are paid out on an annual basis if they are $100 or more. Plus, your credits will never zero out with SCP. PG&E bills NEM customers annually, but SCP will provide our true-up every month, so that customers can better track their solar performance. This means that your charges and credits for electric generation will be done monthly, but you will still get your annual charges and credits from PG&E only once per year. If you become an SCP customer, PG&E will true-up your account at 2
the time of your SCP enrollment. When PG&E performs the true-up you will receive your bill from PG&E for all of the electric charges incurred since your previous annual true-up. If you are already a Net Energy Metering customer with PG&E and switch to Sonoma Clean Power, your account will automatically be enrolled in our Net Energy Metering program. You won t have to do anything to get started. (For BPP Residential Customers This one paragraph) If you use the Balanced Payment Plan (BPP) option with PG&E, you will continue to receive your gas and electric delivery charges from PG&E in the BPP form. However, your electric generation charges from SCP will not be included as part of the BPP and will vary from month to month depending on your usage. Therefore, you will see some variance on your monthly bills. SCP is currently working on implementing a BPP program for its charges as well. (For Discounted BPP Residential Customers: Include Discounted paragraph followed by BPP paragraph.) (For Discounted NEM Residential Customers: Include the Discounted paragraph followed by the four NEM paragraphs.) (For BPP NEM Residential Customers: Include the BPP paragraph followed by the four NEM paragraphs.) (For Discounted BPP NEM Residential Customers: Include Discounted paragraph followed by BPP paragraph followed by four NEM paragraphs.) (The following is for all Residential customers) As a not-for-profit public agency, SCP will reinvest money in Sonoma County to develop local renewable power sources and support local jobs. That s why, out of the gate, we are offering our EverGreen product using 100% locally produced renewable power. As we grow, we will develop local energy efficiency programs and renewable power sources to continue to support our community. 3
Starting in May, you will begin receiving cleaner power from SCP at a slightly lower price, unless we hear from you. California law makes SCP the default service in jurisdictions that have chosen to participate, because of the significant benefits SCP provides. This means you will be enrolled with SCP CleanStart in May 2014 unless you call or contact us online to opt out, or choose to opt-up to SCP EverGreen 100% local renewable power. It s your choice. Based in Santa Rosa, Sonoma Clean Power is a public agency governed by a Board of Directors made of local, elected representatives from Sonoma County and participating cities including Sonoma, Santa Rosa, Cotati, Windsor and Sebastopol. For more information about SCP, to opt out, or to choose our EverGreen program: please call us at 1 (XXX) XXX-XXXX or visit www.sonomacleanpower.org. SONOMA CLEAN POWER TERMS AND CONDITIONS OF SERVICE (The entire document also in Spanish and printed on the same paper with the same design and color treatment.) 4
TERMS AND CONDITIONS OF SERVICE Sonoma Clean Power (SCP) electric generation rates are stable and affordable. View our rates at (INSERT URL) or call 1-XXX-XXX-XXXX for more information. Any changes to SCP rates will be adopted at duly noticed public meetings of the Sonoma Clean Power Authority Board of Directors. PG&E will also charge SCP customers a Power Charge Indifference Adjustment (PCIA) and Franchise Fee Surcharge. Please visit our website or contact PG&E for more information. BILLING SCP customers will receive a single monthly bill from PG&E that will include all of the electric charges. PG&E will forward the payments you make on the portion of the bill for power generation to SCP. PG&E will continue to charge you for transmission, distribution, public goods programs and other nongeneration charges at the same rates it charges its non-scp customers. ENROLLMENT SCP is now the default electricity provider in the unincorporated areas of Sonoma County, the cities of Cotati, Santa Rosa, Sebastopol, and Sonoma, and the Town of Windsor. You will be automatically enrolled in the SCP CleanStart 33% renewable energy service in May 2014, unless you choose to opt out and remain with PG&E. You may request to opt out at any time. You may also choose to enroll in the SCP EverGreen 100% local 100% renewable energy service. To opt out, or to sign up for EverGreen, please call 1-XXX- XXX-XXXX or visit www.sonomacleanpower.org. Please have your PG&E bill on hand so that we can quickly process your request. OPT OUT You may request to opt out of SCP at any time by calling 1-XXX-XXX-XXXX or by visiting www.sonomacleanpower.org. Please have your PG&E bill on hand so that we can quickly process your request. If you choose to opt out more than 60 days after your SCP service starts, you will be subject to the payment of a one-time fee of $25 (if you are a commercial customer) or $5 (if you are a residential customer), and will not have the option to return to SCP for one year. You will also be subject to PG&E s terms and conditions of service. For information on PG&E s terms and conditions visit (INSERT URL). You will not be charged a termination fee if you opt out within the first 60 days after your enrollment with SCP or if you cancel electric service altogether (for example, if you move). If you opt out, you will be charged for all electricity procured by SCP on your behalf prior to the transfer of electric service to PG&E. Accounts will be transferred to PG&E on the day of the electric account meter read and cannot be transferred during the middle of a billing cycle. In order for your opt out request to be processed on your next 1
meter read date, your request must be received at least 5 business days prior to the meter read date. FAILURE TO PAY SCP may transfer your account to PG&E upon 14 calendar days written notice to you if you fail to pay any portion of the SCP charges on your bill. If your service is transferred you will be required to pay the termination fee described above. 2