Community Choice EnergyIn San Mateo County

County CCE Advisory CommitteeMay 28, 2015

Goals of a Countywide CCA Program

1. Lower greenhouse gas intensity than PG&E2. Lower electricity rates3. Priority on local power development, local energy programs and

minimal/no use of unbundled RECs4. Quantifiable and equitable economic development benefits; local

jobs, local business partnerships, low-income communities5. Different energy options, customer choice6. Stimulate growth of new renewable power development7. Promote energy conservation and demand reduction8. Foster community resilience; local ownership of energy resources9. Well managed, fiscally sound, publicly transparent organization10. Foster inter-jurisdictional cooperation, consumer benefit and local

business opportunity

Structure of Countywide CCE Program

Organizational Structure: Joint Powers Agency • Common legal structure for multi-jurisdictional programs• Creates a legal firewall between assets and liabilities of the JPA and those of

municipal general funds; municipalities protected from contract and program risk• Administrative overhead currently between 4-6% for existing JPAs• Local yet scalable approach to achieve community goals and objectives

Statutory/Regulatory Requirements • Load data/customer protections, enabling ordinance, implementation plan, utility

service agreement, customer enrollment, resource adequacy, renewable portfolio Standard (RPS) and other regulatory reporting.

Governance/Staffing • Local elected officials provide local accountability. Two-tier voting structure. Board

oversight of Agency operations, all revenues/expenses, power supply decisions, rate setting, and related energy programs. 10 – 20 staffers depending on size and scope.

Surplus Revenues • Can be leveraged for broad community benefit -- new energy and environmental

programs, local power development, held in reserves for long-term rate stabilization.

Elements of CCE Formation & Operations

1. Local Policy, State Statutory & Regulatory

Requirements

2. Community Engagement/Marketing

3. CCA Program & JPA Development

4. Technical – power procurement, rate-setting,

forecasting

5. Financial/Legal

Overview of SMC Formation Timeline

San Mateo County could launch a CCA by Q3 2016.

Phase 1 Phase 2

January -September 2015 Sept. 2015 - April 2016 May – September 2016

Pre-Planning & Due Diligence

Community Outreach; CCA Planning & Development

Preparing for Launch

• Internal planning team• Initial outreach to cities

and key stakeholders• Workshops & education• CCE technical study• Formation of CCE

advisory committee

• CCE Program design, JPA formation

• Public outreach• Local ordinances• Implementation Plan • RFP for Energy Services • JPA staffing/working

capital

• Energy supply and other service contracts

• Utility Service Agreement

• Regulatory registrations• Call Center & Customer

Enrollment

Phase 3

Proposed CCA Formation Budget

Phase I Phase II Phase III TOTALS:

Internal Planning; CCA JPA Development $60,000 $220,000 $100,000 $370,000

External Affairs/ Community Engagement $75,000 $350,000 $210,000 $635,000

Technical & Energy Services

$150,000-$160,000 $220,000 $80,000 $470,000

Financing Partner(s) $5,000 $10,000 $10,000 $25,000

TOTALS $300,000 $800,000 $400,000 $1.5M*

* Includes ~$200,000 in contingency funding

County is sponsoring start-up investment; all start-up costs are recoverable through early CCE revenues

Existing CCE Financial Conditions

Both Marin and Sonoma’s programs are fiscally sound; All financials are audited/public

MCE (FY15-16 Budget) SCP (FY15-16 Budget)

Total Revenue $145,933,000 $165,495,000

Expenses $141,433,000 $148,588,000

Cost of Energy $129,522,000 $130,100,000

Cost of Administration 4% 3.5%

Net Increase in Reserves

$4,500,000 $16,907,000

Accomplishments Thus Far

Focused outreach to all 20 cities; unanimous participation in Countywide Technical Study

Formed internal staff + consultant team to manage process Unanimous Board agreement to fund CCA program development Robust community engagement: Stakeholder database, e-notifications,

website, educational workshops and community events First Advisory Committee meeting on May 28 Technical Study underway in June Return to BOS in early September for study results and Phase II funding

Next Up Through August

Technical Study Load analysis/demand forecast, can program be price competitive; can

program significantly reduce GHGs, projected rates 10 years out; power supply options; projected economic devt impacts

Evaluation of program options

Advisory Committee Mtgs – continued education, prep for Phase II

Continued local government, business and community outreach