1. East Bay Community Energy Board Briefing on Policy Issues – Session #1 DRAFT June 7, 2017
Presented by:
Gary Saleba, President/CEO Ryan Ramos, President
EES Consulting, Inc. RS2 Energy

2. Agenda Introductions and Session Objectives
Background on Policy Decisions
Detailed Discussion
Governance
Administrative
Finance
Rates/Programs
Preview of Issue at Next Session (June 21??)
Wrap-Up
Questions/Answers

3. Introductions and Session Objectives

4. Background on Policy Decision
Schedule for Launch by 1Q 2018 is Tight
Critical Path Issue is Getting Data Management/Billings Aligned with PG&E
In Order to Get Data Alignment Started, Must Have:
Data management vendor hired
PG&E administrative paperwork completed
EBCE Implementation Plan certified by California Public Utilities Commission – file mid July, 2017
Proposed Policy Decision Making Process
Session #1 – Governance, Administrative, Financing, Rates, Programs
Session #2 – Load Forecast, Power Supply, Phase-In Schedule, Power Supply Portfolio Options
Session #3 – Risk Management, Financial Reserves, Power Supply Risk Management Parameters

5. Policy Decisions Needed for Implementation Plan (Session 1)
Introduction
Initial policy decisions directed at getting the Implementation Plan (IP) filed
All decisions can be adjusted later as circumstances/policy changes
Course correction common in dynamic market
Some issues easy and will just raise briefly
Others will require discussion

6. EBCE Decision Schedule
Org Structure
Rate Design
Programs
Select Power Supply Vendor
Key Board Decisions:
Decide power product offerings and power sourcing strategy
Select Financing Partner

7. Policy Decisions Needed for Implementation Plan (Session 1) (cont’d)
Governance – (Completed)
Statement of intent from JPA agreement
Secure electrical energy supply and rate stability for customers
Address climate change by reducing GHG emissions
Foster local economic benefits: job creation, local energy programs
Termination of JPA (completed)
JPA agreement may be terminated by mutual agreement of all Parties
Surplus assets in possession of the Authority shall be returned to the then-existing Parties in proportion to the contributions made by each once all liabilities, costs, expenses, and charges incurred are paid.

8. Operational Structure Options
Maximize Internal Staffing
Balance Staffing & Consultants
Maximize Consultants
We also discussed the continuum of staffing scenarios – from:
- Minimal to full staffing – where there’s a range of CCA functions performed by internal staff and consultants/ contractors; maintains max. control over decision-making and revenues
- Third-party turnkey model – which would still require minimal staffing but where a third-party would finance and perform the majority of start up duties for a cut of the revenues.

9. Sample Org Chart – Full Internal Staffing
Board of Directors
CEO
Director of Administration & Finance
Finance Manager
Administrative Analyst (2)
Administrative Assistant
Contract Support:
Accounting
IT/Telecom
Director of Power Resources
Power Contracts and Compliance Specialist
Power Resource Planning and Programs Analyst (2)
Energy Contract Attorney
ESP/Schedule Coordination
General Counsel & Director of Government Affairs
Regulatory/Legislative Analyst
CCE Association
Regulatory Attorney
Lobbyist (Sacramento)
Director of Marketing & Public Affairs
Community Outreach Manager
Account Services Manager
Account Representative
Community Outreach Specialist
Graphic & Web Design
Data Mgmt/Call Cntr
Executive Assistant/Clerk

10. Administrative/Finance
Financing
Short-term start out
County loan
Longer-term/roll out
RFP for financial advisor
RFP for loan
RFP for line of credit, deferred payment plans
Select least costly option

11. Rates Structural Options PG&E rate with % discount
Pros
Easy to design, explain and verify discount
All operating CCAs follow the incumbent IOU’s rate structure
Cons
Does not match cost causation
Possible revenue instability issues with DER/DSM/EE
Cost based rates – perform cost of service analysis and follow
Matches cost causation
Stabilize revenues
User pays/equitable
Hard to compare to PG&E rates
Winners and losers

12. Rates (cont’d) Process Staff Recommendation Staff recommendation
Public notice
Public vetting/Citizens’ Advisory Committee input and comments
Final determination
Staff Recommendation
Start with straight discount off of PG&E rates
After stable operations are achieved, analyze possible transition to cost-based rates specific to EBCE or stay with PG&E rates with discount
Marin Clean Energy:
“The Executive Officer, with support of appropriate staff, advisors and committees, will prepare an annual budget and corresponding customer rates and submit these as an application for a change in rates to the Board of Directors. The rates will be approved at a public meeting of the Board of Directors no sooner than sixty days following submission of the proposed rates, during which affected customers will be able to provide comment on the proposed rate changes. MEA will initially adopt customer noticing requirements similar to those the CPUC requires of PG&E. These notice requirements are described as follows: Notice of rate changes will be published at least once in a newspaper of general circulation in the county within ten days of after submitting the application. Such notice will state that a copy of said application and related exhibits may be examined at the offices of MEA as are specified in the notice, and shall state the locations of such offices. Within forty-five days after the submitting an application to increase any rate, MEA will furnish notice of its application to its customers affected by the proposed increase, either by mailing such notice postage prepaid to such customers or by including such notice with the regular bill for charges transmitted to such customers. The notice will state the amount of the proposed increase expressed in both dollar and percentage terms, a brief statement of the reasons the increase is required or sought, and the mailing address of MEA to which any customer inquiries relative to the proposed increase, including a request by the customer to receive notice of the date, time, and place of any hearing on the application, may be directed.”
Sonoma Clean Power: pg. 37
“Program rates are established in a public process originating with staff assessment of the revenue requirement, presentation of a combined budget and rate proposal to the Community Advisory Committee, followed by presentation of the draft budget and rates to the Board of Directors. Staff then develop a proposed final budget and set of customer rates based on public feedback, first to the Customer 38 October 2016 Advisory Committee for recommendation and then for adoption to the SCPA Board of Directors.”

13. Programs  × Programs MCE SCP CPSF PCE SVCE LCE Net Energy Metering
Feed-In Tariffs ×
Demand Response
Electric Vehicle Incentives
Distributed Energy Resource Incentives
Energy Efficiency
Energy Storage Pilot

14. Programs (cont’d) Other Rates/Programs (cont’d) Staff recommendation
Adopt most PG&E programs initially
Improve on these programs once EBCE is operational
Program levels will be contingent on flow
Consult Citizens’ Advisory Committee

15. Next Session – June 21?? Load Forecast – Who’s In?
Phase-In Strategy – How Many, Who and When?
Resource Portfolio Offerings – How Much Green, Carbon Free and Market? What is Default Option?
Power Supply Purchasing Risk Strategy – How Much Short/Long-Term? How Much Fixed Price vs. Market?
Financial Reserves – How Large, How Quickly Accrued?

16. Wrap-Up

17. Questions/Answers