This document introduces the Silicon Valley Community Choice Energy Partnership, which would allow local communities to purchase electricity on behalf of residents and businesses from renewable sources. It finds that such a partnership has the potential to meet climate goals and offer initially lower rates than PG&E. The path ahead includes technical studies, public outreach, forming a joint powers authority, and enabling ordinances, with a target launch date of winter 2017. Risks exist but can be mitigated.

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Introducing the Silicon
Valley Community
Choice Energy
Partnership
Saratoga City Council
Wednesday, November 4, 2015
Melody Tovar
City of Sunnyvale | SVCCEP

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What is Community Choice Energy?

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Why are we considering this?
• Communities adopting Climate Action Plans
for Greenhouse Gas Reduction
• Transportation and Electricity Consumption are
largest community contributors of GHG
• Transforming Electricity Sourcing is essential
to reaching goals

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Accelerating Renewables
Solar
Wind
Biomass

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Introducing SVCCEP - Silicon Valley
Community Choice Energy Partnership
Sponsoring Agencies
Sunnyvale | Cupertino | Mountain View | Santa Clara County
Also Participating
Campbell | Gilroy | Los Altos | Los Altos Hills
Monte Sereno | Morgan Hill | Saratoga

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www.SVCleanEnergy.org

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Assessment Report LEAN Energy US, May 2015
Key Findings
• Good potential to meet climate action goals
• Timing is good
• Existing CCE programs are performing well
• Anticipated rate savings in the near term
• Risks exist but can be mitigated

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Proven Model in Current Programs
• Green power; more renewables
• Competitive rates – currently lower
• Enhanced local energy programs
• Financially sound
27 36
100
0%
50%
100%
PG&E CleanStart EverGreen
Unspecified
Nuclear
Natural Gas
Large Hydro
Renewable
8
24
21
21 20
44
Electric Power Generation Mix*
PG&E – Sonoma Clean Power Comparison

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Parallel Tracks
Technical Study &
Program Development
Stakeholder
Engagement
Agency Agreement &
Preparation

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Community Engagement
• Community Meetings
 Round 1 (6 meetings) complete
 Round 2 in December/January
• Targeted Stakeholder Forum
 November 17th in Sunnyvale
• Business Engagement
 Webinar November 4th
 Business Forum Meeting – December
 Business Groups, Chambers
• Grows in next phase
• Customer Noticing 60 days before service

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The Path Ahead

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Partner Decision Making
• Managers and Electeds Forum
on November 19:
- Tech Study Presentation
- Discuss Input to JPA Agreement
- Discuss Cost-sharing Contribution
• Council/Board Action
- Adopt CCE Ordinance
(with 2nd reading)
- Resolution to Join JPA; approve final agreement
- Approve Cost-sharing Contribution
• Target – Action by March 31, 2016
- Council preparatory info by December 9, 2015
- Sponsoring Agencies targeting action by January 31, 2016
- First JPA meeting in April 2016

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Thank you.

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Pocket Slides

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SVCCEP Milestones and Timeline
We are Here
Phase 1 Phase 2 Phase 3
INITIAL STUDY TECHNICAL FEASIBILITY CCE PROGRAM
DEVELOPMENT
CCE LAUNCH
 ID potential agency
partners
 ID opportunities, costs,
and risks
 Investigate other CCEs
 Inform community and
gather feedback
 Framework for next steps
 ID partners & funding
 Technical Study: load
and rate analysis,
economics, supply
options, environmental
outcomes
 Community outreach &
input
 JPA Formation
 Expand Outreach
 Energy Svcs Pricing and
Procurement
 Enabling Ordinance
 Implementation Plan to
CPUC
 Agmt with PG&E
 Bridge financing to
revenue
 Staffing and Org setup
 Energy and other Service
Contracts
 Customer notifications
and service
 Conservation &
Renewables
programming
Fall 2015
Technical Study
Completed
Winter 2015
Communities
Decide  JPA
Spring 2016
Implementation
Plan to CPUC
Winter 2017
Program Launch!
Summer 2016
Ramp-up Operations and
Communications

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SVCCEP Priority Goals
• Offer renewable energy supply options that exceed the
renewable content offered by IOU.
• Reduce GHG emissions to support local climate action
goals.
• Provide competitive, potentially lower, electricity rates
for all customers.
• Facilitate the use of clean technology, local clean
power, and other energy innovations.
• Create and maintain a local public agency that is well
managed and financially sustainable.

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Overview of Usage by Community
Sunnyvale
Mountain View
Unincorporated Santa Clara
Cupertino
Campbell
Gilroy
Los Altos
Los Altos Hills
Los Gatos
Monte Sereno
Morgan Hill
Saratoga
68%
32%
Electricity Usage by Community
4 Million MWh Total

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Technical Study Scenarios
1. Match PG&E GHG-free content and start at 35%
Renewable Portfolio Content
2. Exceed PG&E content, starting at 50% RP escalating to
75% by 2030, and ensure that GHG remains 20% below
PG&E
3. Maximize GHG-free and RP content, while achieving
rate parity with PG&E
 Include 100% RP voluntary program in all scenarios
 Utilize Product Content Category 1, 2 split of 75%/25% in all
scenarios
Technical Study Results Presentation at 11/19 Managers &
Electeds Meeting

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Risks Exist But Can Be Mitigated
20
Risks related to CCE
 Financial Risk
 Competitive and Pricing Risk/
Opt‐Out Rates
 Market Exposure
 Regulatory Risk
 Political Risk
Assessment Report analyzes these risks and
outlines potential risk‐mitigation measures
Effect
on Business
Probability
of Event