LEAN Energy US California CCA Market Update

August 10, 2018

Welcome & Webinar Tips

The webinar will begin in a few moments. The presentation will run for about 50 minutes followed by 5-10 minutes for Q&A as time allows.

You may submit a question at any time during the webinar. Should your question require an immediate answer, we will do our best to answer it right away. Some questions may be held until the Q&A period at the end.

Thank You For Joining Us!

Today’s Agenda

Welcome & Announcements

Update on California and Western States CCA Expansion

Shawn Marshall, Executive Director, LEAN Energy US

Update on Desert Clean Energy’s Decision to Postpone Launch

Katie Barrows, Director of Energy and Environmental Resources, Coachella Valley Association of Govts. (CVAG)

It’s Wildfire Season: Anticipating Energy Consumption Impacts, Procurement Response and

Program Recovery

Deb Emerson, Director of Power Services, Sonoma Clean Power

California Legislative Report

Beth Vaughan, Director, CalCCA

California Regulatory UpdateDavid Peffer, Attorney, Braun, Blaising, Smith, Wynne

Q&A and Wrap Up

On Today’s Call…

Guest Speakers

David PefferAttorney,

Braun, Blaising, Smith, Wynne

Beth VaughanDirector, CalCCA

Deb EmersonDirector of Power Services,

Sonoma Clean Power

Katie BarrowsDirector of Energy and

Environmental Resources, CVAG

California CCA Update - Operational

NORTHERN CALIFORNIA

MCE Clean Energy Marin, Napa, Contra Costa Counties, City of Benicia

MCE paid out $1.8 M to NEM customers for excess energy in FY 2017-2018 and made available $1M in energy efficiency incentives for Napa fire rebuild; Launch of new MCEv charging station rebates for commercial and multi-family properties; Open inclusion period for new member agencies through September 15, 2018; Check out www.mcecleanenergy.org for more info.

Sonoma Clean PowerSonoma and Mendocino Counties

New 1 MW ProFiT project in Petaluma now serving100% renewable Evergreen customers; 4 additional FiT projects are underway in Sonoma/Mendocino; Drive EV rebate program is in its 3rd round through November with 6 dealers including Ford, Chevrolet, Kia, BMW and Chrysler; 103 applications received thus far for Advanced Energy Rebuild program, a partnership with PG&E and Bay Area Air Quality Management District, for Oct 2017 fire rebuild. Check out SCP’s rebrand at www.sonomacleanpower.org;

East Bay Community EnergyAlameda County

Completed first fiscal year (June 2018) with revenue (and only 1 month of operations); Adopted Local Development Business Plan; Completed post enrollment for Phase 1 commercial customers and gearing up for residential enrollment this Fall; Opt outs remain below 3%; several open positions -- check out www.ebce.org.

Peninsula Clean EnergySan Mateo County

PCE launching suite of Go Electric programs to promote EV usage in the County; PCE reduced San Mateo County’s GHG emissions from electricity by 50% this past year. Check out www.peninsulacleanenergy.com

Silicon Valley Clean EnergySanta Clara County

Recently completed joint procurement effort with MBCP resulting in 15-year contract for 110 MW of New Mexico wind which complements intermittency of CA solar and helps flatten duck curve; power is CA-RPS eligible and will serve 10% of SVCE’s load starting in late 2020; Completed service area GHG inventory which highlights a 20% reduction in local GHGs from SVCE service; Launched local outreach grants program to build local partnerships and ensure accurate information sharing about SVCE’s services and programs. www.svcleanenergy.org

California CCA Update - Operational

NORTHERN CALIFORNIA

San Jose Clean EnergyCity of San Jose

Phase I municipal accounts begin service on September 1 – Congrats! Launch event in conjunction with Global Climate Action Summit on September 12th; RFP for 2500 GWh of renewables has been issued to serve Phase II customer load; Several new job postings this Fall; Check out www.sanjosecleanenergy.org

Monterey Bay Community PowerMonterey, Santa Cruz, San Benito Counties

Phase II residential enrollments began July 1 and are going well– holding steady at 97% customer retention; Completed long-term joint procurement with SVCE for 15 years/90 MW of New Mexico wind; MBCP is first CCE to have onsite call center with 4 people hired for customer service/call center; Launched MBPRime, a 100% renewable offering to augment MBGreen and MBShare programs. Open postings for General Counsel and Business Development Manager; www.mbcommunitypower.org

Valley Clean EnergyYolo County, Cities of Davis and Woodland

VCE launched service in one mass enrollment in June and reports 97% customer retention rate. NEM program to commence in 2019 will closely match PG&E’s approach with better over-generation payout--customers will retain their annual true-up date and annual billing cycle. Customers with annual net bill exceeding $500 on monthly billing. www.valleycleanenergy.org

Redwood Coast Energy AuthorityHumboldt County

2.25 MW solar+storage microgrid project at airport co-sponsored by Schatz Energy Research Center and funded by an EPIC grant will operate in grid-isolated mode to support critical airport and coast guard loads and during normal conditions will use excess storage to reduce wholesale power procurement costs for RCEA; Peak Day Pricing protection program is ongoing with day-ahead alerts via text and email to participating customers; Completing public-private partnership with consortium of companies and lease with Federal Bureau of Ocean Energy Mgmt for 100-150MW floating offshore wind project in Humboldt Bay; RCEA and other CCAs/LSEs as joint off-takers. www.redwoodenergy.org

California CCA Update - Operational

SOUTHERN CALIFORNIA

Desert Community Energy Delayed August 1st launch due to market conditions; Katie Barrows from CVAG to provide update.

Clean Power Alliance - Southern CALA and Ventura Counties

CPA now serving 34,000 non residential accounts in unincorporated LA County, South Pasadena and Rolling Hills Estates; Gearing up for Feb 2019 enrollment of 925,000 residential accounts serving all of CPA’s 31 member communities which includes Ventura County and some of its cities. Final enrollment of 135,000 non residential accounts will follow in May 2019. Three positions – Director of Marketing and Account Services, Power Supply and Compliance Senior Analyst, and Manager of Finance and Risk Mgmt – are currently open. Receiving applications for CPA Community Advisory Committee. CivicSpark fellow assigned to work on CPA equity plan. Check out www.cleanpoweralliance.org.

California Choice Energy Authority (CCEA)- PRIME, San Jacinto Power, Rancho Mirage Energy Authority

Pico Rivera/PRIME, San Jacinto Power, and Rancho Mirage are now fully enrolled. 6 other cities – Hanford, Baldwin Park, El Monte, Santa Paula, Pomona, Commerce – are in the midst of tech studies/Implementation Plans. Expected launch in 2020. www.californiachoiceenergyauthority.com

California CCA Update – In Development

IN PROCESS/2020-2021 Launches

Cities of San Luis Obispo/Morro BayTEA selected as technical and wholesale energy services provider; JPA Agreement is circulating among interested SLO cities; Go/no-go decision expected in September with Implementation Plan submitted by year-end for early 2020 program launch. Working name is Central Coast Community Energy Authority.

Santa Barbara County

In July, the County Board of Supervisors and City Councils of Carpinteria, Goleta and Santa Barbara voted to move forward with formation of JPA serving SB County; current plan is to form JPA in 2019 and file an implementation plan by December 2020 for 2021 program launch; discussions on-going with City of San Luis Obispo so a partnership could re-emerge there – TBD.

Riverside County- Western Community Energy- Unincorporated Riverside County

5 communities have joined Western Community Energy since June and WCE expects 1 or 2 more in coming weeks – Congrats! Plan is to complete Implementation Plan by end of this year for 2020 program launch; County working with Good Energy toward 2020 program launch.

San Diego County: City of Solana Beach City of San DiegoNorth County Cities (Encinitas, Carlsbad, Oceanside, DelMar)

Solana Beach - launched in June – Congrats!City of San Diego - will decide by end of 2018 whether to pursue CCE or accept SDG&E proposal for goal of 100% clean energy by 2035; Climate Action Campaign, SDEDF and others are pushing hard;North San Diego cities – draft Business Plan is complete and going through internal review; will go public by end of August and begin circulation with City Councils this Fall. Unknown whether 2020 or 2021 launch is anticipated.

Other Emergent CommunitiesKing City (Monterey County) Butte CountyCentral Valley

King City – Expected service launch this FallButte County – Technical Study is complete; Presentations before County BOS and City Councils including city of Chico are underway; Go/no-go for 2020 launch expected next month. Central Valley – Recent indications that City of Stockton would like to evaluate their options; discussion underway for a joint study session between City and County of Fresno; Many southern central valley communities interested in outcome of Hanford’s study; due out soon.

LEAN Update August 10, 2018

California Citygate - Previous 12 Months

Emergency Preparedness

2017 California Wildfire Season

• For SCP, these fires included the Tubbs and Nuns Fires in our service territory across Sonoma and Mendocino Counties (there were a series of 250 wildfires that burned across Northern California, including the destructive Atlas fire in Napa County).

• Tubbs Fire impacted was the most destructive wildfire in California history, with nearly 37,000 acres burned, affecting mostly Santa Rosa and destroying ~5% of the city’s residential dwellings.

• Currently, we are dealing with the largest wildfire in California history in acre size in the Mendocino Complex Fire at over 304,000 acres burned with 51% containment as of August 9th.

What did this mean for SCP?

• Overnight we lost ~ 9% of load. Currently that loss is 3-4% with rebuilds just now starting.

• In addition, we had local generation that was impacted.• Our office was closed for two weeks, one week mandatory

by building owner and second week voluntary with no air conditioning and masks required to enter the building.

• Getting the information from PG&E was difficult, although we did meet daily to discuss the loss of meters, red tags and yellow tags.

• We worked with Shell, our scheduling coordinator, and with the use of information from CAL FIRE and PG&E Outage Map, we were able to estimate the loss of load by assessing the percentage of working meters for their model in order to make adjustments to our bids.

What Did We Learn?

• Have a plan. SCP has developed and Emergency Response Plan (happy to share it!)

• Having a great scheduling coordinator is invaluable.• Recognize that fires are more than load, more than

numbers. Remember many peoples’ lives are impacted.

• Volunteer and give back in supporting your community. Encourage and support your employees to get involved in the community.

• Remember, we’re COMMUNITY Choice Aggregators.

Thank youAny questions? Feel free to reach out to us, Deb Emerson (707) 978-3469.

LEAN Webinar

August 10, 2018

CalCCA Bills

❑ SB 901/SB 1088 (Wildfire Conference Committee)

❑ SB 100 (60% RPS and 40% GHG-free)

❑ SB 237 (direct access)

❑ SB 813 (regionalization)

❑ AB 2345 (virtual net metering)

❑ Mandate bills: Geothermal (AB 893), storage (SB 1347),

pump storage (AB 2787)

Key Regulatory Developments

▪ Issuance of the proposed decision in Track 2 of the PCIA

Rulemaking (R.17-06-026)

▪ Issuance of the final version of the Customer Choice

Green Book http://www.cpuc.ca.gov/CustomerChoice/

▪ Developments in the IRP Rulemaking (R.16-02-007)

▪ Resource Adequacy Rulemaking (R.17-09-020).

▪ RPS Procurement Plan Compliance Filings.

▪ CCA Bond Requirements (R.03-10-003)

Announcements & Wrap Up

CPX Webinar: CCAs + IDER: The

Case for Why and When

August 22, 11:00 am – 12:00 pm

California Adaptation Forum

August 27-29, Sacramento

CalCCA Annual Meeting

September 5-6, Pacific Grove

3rd Annual Community Choice

Forum

September 7, San Diego

Global Climate Action Summit

September 12-14, San Francisco

Solar Power International (SPI) and

Energy Storage International (ESI)

September 24-27, Anaheim

Sustain Orange County:

Smart CCA v2.0

September 20, Irvine

Next LEAN Market Call

October 12, 10:00 am – 11:00 am

Find links and more information on these events at www.leanenergyus.org/news-events/