PeninsulaCleanEnergyBoardofDirectorsMee7ng

November17,2016

June23,2016

AgendaCalltoorder/RollcallPublicCommentAc7ontosettheagendaandapproveconsentitems

Agenda

1. ChairReport(Discussion)

RegularAgenda

2. CEOReport(Discussion)

We’re hiring! •  Community Outreach Manager / Coordinator:

closed Nov. 14; 39 applications received •  Customer Care Manager / Director: closing

Nov. 28 •  Contracts and Compliance Manager: closing

Dec 1 •  Additional positions will be posted soon:

– Energy Analyst – Regulatory Analyst

Meetings with CPUC •  Executive Director – November 16 •  Commissioner Michael Florio – November 17 •  Scott Murtishaw, Energy Advisor to CPUC President

Michael Picker – November 17 •  Commissioner Liane Randolph – November 29 •  Commissioner Catherine Sandoval – Nov 29 •  Commissioner Carla Peterman – early 2017

Regular Agenda

3. ProvideanUpdateontheCi7zensAdvisoryCommiMee(Discussion)

4. AdoptaResolu7ononForma7onofaCi7zensCommiMee(Ac7on)

RegularAgenda

5. ProvideanUpdateonRecentCommunityOutreachandMarke7ngEfforts

Past Presentations (last month)

•  City of San Mateo Community Workshop •  Skyline College Sustainability Ambassador

Network

Upcoming Presentations

None in the coming month

Ad Campaign Metrics

Ad Campaign Metrics WEBSITE (Nov 7-14) •  2,342 views (4,644 views/week last month due

to launch) •  58.6% returning; 41.4% new FACEBOOK CAMPAIGN •  Facebook is top referral source to our website •  We will launch ECO100 Facebook ads this

month

Upcoming Outreach •  Sending final two enrollment notices for Phase 1

–  #4 dropped already –  #5 going out later this month –  Using postcard format to reduce costs

•  NEM enrollment notices ongoing •  Phase 2 Launch preparation •  Developing business “proposal” and ECO Business

Directory •  Developing new swag for business and ECO100

Opt-Outs

Opt-Ups

RegularAgenda

6. DiscussiononMarke7ngMaterialsinDifferentLanguages(Discussion)

Enrollment Notice Requirements

Everycustomermustreceiveano:ceinwri:ngincludingtheTerms&Condi:ons:

(1)atleasttwiceduringa60dayperiodinadvanceofthedateofAutoma:cEnrollment;and

(2)atleasttwiceduringa60dayperiodfollowingenrollmentinaCCA’sService.

PCE’s Enrollment Notice History

InPhase1PCEsent5no:cestoeachcustomer

Format Treatmentofnon-EnglishLanguages

No:ce1 LeOer Fulltransla:onofSpanishorChinesesenttoselectci:es

No:ce2 Brochure Fulltransla:onofSpanishorChinesesenttoselectci:es

No:ce3 Postcard Par:altransla:onofSpanishandChinesesenttoall

No:ce4&5 Postcard Par:altransla:onofSpanishandChinesesenttoall

Use of PCE Non-English Assets CallcenterWebsite

WebsiteVisitsbyLanguage:July4–November14,2016

Language #ofSessions

English 32,304

Spanish 5,685

Mandarin 1,040

October YearThroughOctober

English 386 1863

Spanish 10 40

Mandarin 1 16

Cost

Phase1es:mateddirectcostperpieceforprin:ngandmailing(doesnotincludingdesignorstaff:me):

• LeOer:$0.76• Foldedself-mailer:$0.88• Postcards:$0.53

OurbudgettargetforPhase2is$0.60includingpostage

Considerations •  PCEwillsendover1millionno:cesin2017•  Thereareopportuni:estoreducecostbychanginglayout,

sendingbybulkpostagerate,andothertac:cs•  PCEmayhaveanopportunitytodooneno:ceasaPG&Ebill

insertinMay–  Lowcost–  Notsufficientrealestatefortransla:ons

•  ThePhase1approachwassuccessfulinkeepingopt-outrateslow,butwascomplexandpaper-intensive

•  No:cesareaprimarymeansofcustomersengagingwithourbrand

•  PCEwantstoberespecculofournon-Englishspeakingcustomers

Discussion

Should PCE repeat the same notice format and language translation approach utilized in Phase 1 (some receive only English, some receive English and full-translation Spanish, and some receive English and full-translation Mandarin)?

OR

Should PCE send all customers the same mailing piece

with only partial translations in Spanish and Mandarin?

RegularAgenda

7. ProvideanUpdateontheRenewableSupplyRequestforOffers

(Discussion)

•  CriteriastatedintheRFOInstruc:ons:–  Overallqualityofresponse,includinggeneralcompletenessandconformance

withRFOinstruc:ons–  Projectloca:on&localbenefits(Includinglocalhiringandprevailingwage

considera:on)–  Interconnec:onstatus,includingqueueposi:on,fulldeliverabilityofRAcapacity,

andrelatedstudycomple:on,ifapplicable–  Si:ng,zoning,permiingstatus,ifapplicable–  Price–  Qualifica:onsofprojectteam–  Ownershipstructure–  Environmentalimpactsandrelatedmi:ga:onrequirements–  Financingplanandfinancialstabilityofprojectowner/developer–  AcceptanceofPCE’sproformacontractterms–  Developmentmilestoneschedule,ifapplicable

PCE’sOfferEvalua7onCriteria

26

•  TheRFOwebsitewillnotallowsubmiOalofincompleteoffers•  PCEisnowreviewingofferandprojectdetails•  IfPCEiden:fiesamistakeorminorissue,weprovideanopportunitytocure•  Nonconformingoffersarebeingeliminatedfromconsidera:on

–  (veryfewofthese)–  e.g.,ifthelatestinterconnec:onstudyisnotaPhaseIIstudy

IstheOfferCompleteandConforming?

27

•  PCEcollectedthefollowinginforma:onfrombidders,regardingpast,currentand/orplannedeffortsbyprojectdevelopersandtheircontractorsto:–  EmployworkersandusebusinessesfromthePCEserviceterritory–  Employproperlylicensed(A,B,C10,C7,C46)contractorsandCaliforniaCer:fied

electricians–  U:lizemul:-tradeprojectlaboragreementsontheproposedprojectoranyprior

projectdevelopments–  U:lizelocalappren:ces,par:cularlygraduatesoflocalpre-appren:ceship

programs–  Payworkersthecorrectprevailingwageratesforeachcran,classifica:onand

typeofworkperformed–  Displayaposteratjobsitesinformingworkersofprevailingwagerequirements–  Provideworkerscompensa:oncoveragetoon-siteworkers–  SupportanduseStateofCaliforniaapprovedappren:ceshipprograms

ProjectLoca7onandLocalBenefits

28

•  Bidderswererequiredtouploadthelatestcompletedinterconnec:onstudyforeachproject–  TheminimumrequirementforeligibilityisaPhaseIIinterconnec:onstudy

•  Assuch,aprojectmusthavefirmcostandschedulees:matesfornewfacili:esrequiredtoallowinterconnec:onandtransmissionofpowertothegrid

•  Toreachthispoint,developershavetoinvestsignificant:meandmoneyintheinterconnec:onstudyprocess,showingthattheyhave:–  Sitecontrol–  Engineeringdesignspecifica:onsanddrawings,etc.

•  Thesearestrongindica:onsofaviableprojectthatwillbeabletoreachcommercialopera:onanerobtainingapowerpurchaseagreement

Interconnec7onStatus

29

•  BidderssubmiOedprojectdevelopmentmilestoneschedulesindica:ngactualorplannedcomple:ondatesformajorpermits,etc.

•  Becausetheprojectsarewellalonginthedevelopmentprocess,anykeyenvironmentalandpermiingissueshavebeeniden:fiedandresolved

Si7ng,Zoning,Permi`ngStatus

30

•  Bidpricesarebeingnormalizedtoaccountfordifferentstartdates,transmissioncostsandresourceadequacy(RA)benefits

•  Othercosts,suchasconges:onissuesindicatedbynega:veloca:onalmarginalpricesataproject’spricingnode,arebeinges:mated

•  Offersarebeingrankedinascendingordertofurtherevaluatethemagainsttheothercriteriadiscussedhere

Price

31

•  Adeveloper’squalifica:onsareprimarilyafunc:onofopera:ngprojectsthefirmhasdeveloped

•  ManyofthebiddershavesignificantexperienceandarewellknowntothePCEteam

•  Ownershipstructureandthefirm’sprojectfinancingplanindicatethefirm’sabilitytoobtainfinancingfortheproject,successfullycompleteitsconstruc:onandbringitonline

Qualifica7onsandOwnershipStructure

32

•  PCEpublishedaproformapowerpurchaseagreement(PPA)andrequiredbidderstobidtothiscontractform

•  Inaddi:on,bidderswererequiredtosubmitacompletedPPAcoversheetandaPPAredline

•  PCE’sinten:onistoconductonlytheminimumamountofnego:a:onsnecessarytoconformeachPPAtotheprojectcharacteris:cs

•  Therefore,offersthatareaccompaniedbyaheavyamountofredliningwillbegivenlessconsidera:onintheselec:onprocess

•  Issue:PCE’scredit

AcceptanceofPCE’sContractTerms

33

•  MeetwithanadhoccommiOeeofBoardmemberstomorrow(November18)toapplytheaboveevalua:oncriteriaandobtaininputonasmallnumberofprojectsunderconsidera:on

•  ReachouttobiddersofcandidateprojectstodiscussPPAtermsandresolveanypointsrequiringnego:a:on

•  FinalizePPAsbasedonthesediscussions•  OnDecember5,no:fyallbiddersastothestatusoftheiroffers,andprovide

signature-readyPPAstoselectedbidders(thisstepandthefollowingonesmayslipdependingontherevisionstothePPAs)

•  OnDecember12,receiveexecutedsignaturepagesfromtheselectedbidders•  OnDecember15,brieftheBoardofDirectorsontheselectedprojectsand

requestapprovalforPCEtoexecutethosecontracts•  OnDecember20,executePPAs

NextSteps

RegularAgenda

8.AdoptPCEAMission(Ac7on)

PeninsulaCleanEnergyisSanMateoCounty’slocallycontrolledelectricityprovider.Weare

reducinggreenhousegasemissionsandofferingcustomerchoiceatcompe::verates.

RegularAgenda

9.AdoptPCEAStrategicGoals

1.Designadiversepowerporcoliothatisgreenhousegasfree.

–  100%GHGfreeby2021–  sourcedby100%CARPSeligiblerenewableenergyby2022–  createaminimumof20MWsofnewlocalpowerby2025

2.Con:nuallystrivetoofferECOPlusatratesthatareatparityorlowerthanPG&Erates.3.S:mulatedevelopmentofnewrenewableenergyprojectsandclean-techinnova:oninSanMateoCountyandCaliforniathroughPCE’sprocurementac:vi:es.

4.Demonstratequan:fiableeconomicbenefitstotheCounty/regionandplaceapriorityonlocalhiringandworkforcedevelopmentprac:ces.5.Implementprogramstofurtherreducegreenhousegasemissionsbyinves:nginlocalcleanpowerproduc:on,energyefficiency,anddemandresponse,andpartneringeffec:velywithlocalbusiness.

6.Maximizeandmaintaincustomerpar:cipa:oninPCE.

–  Provideasuperiorcustomerexperience– DevelopPCEbrandawarenessandloyaltythroughouttheCounty

– Ac:velyencouragevoluntarypar:cipa:oninitsECO100renewableenergyproduct

– Ac:velyencouragepar:cipa:oninotherprogramsPCEdevelops

– Achieverecogni:onfromtheEPA’sGreenPowerPartnershipforGreenPower

–  Communi:esforallci:eswithmunicipalaccountsenrolledinECO100by2018

7.Buildafinanciallysustainableorganiza:on.– Buildsufficientreservesinaratestabiliza:onfund– Achieveaninvestmentgradecreditra:ngby2021

8.Fosteraworkenvironmentthatespousessustainablebusinessprac:cesandcul:vatesacultureofinnova:on,diversity,transparency,integrity,andcommitmenttotheorganiza:on’smissionandthecommuni:esitserves.

RegularAgenda

10.AdoptPCEAPolicyonEthicalVendorStandards(Ac7on)

PeninsulaCleanEnergy(PCE)iscommiOedtothehigheststandardsofresponsiblebehaviorandintegrityinallofitsbusinessrela:onships.

PCEwillconsideracompany’sbusinessprac:ces,environmentaltrackrecord,and

commitmenttosustainabilityinitsprocurementdecisions.

RegularAgenda

11.ReviewFinancialStatements(Discussion)

RegularAgenda

12.BoardMembers’Reports(Discussion)

RegularAgenda

Adjourn