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I Katie, it's good to see you.

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I think we're just waiting for a quorum. We had a note from some of our members that they're stuck in traffic and may be up to 10 minutes.

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Thanks for the update. I'm just testing my audio.

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We can hear you.

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I call on the meeting of the Central Coast Community Energy Community Advisory Council to order.

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Clerk Bale, would you like to do a roll call?

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Thank you, Chair.

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Number one, is abstain.

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Domain.

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Violent.

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Domain host is abstain.

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It is abstain.

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Johnson is abstain, the clash.

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Absent.

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Morten.

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President.

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President.

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Statement.

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Here.

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To it's a bookie.

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Here.

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Vice your data.

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Here.

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We have a quote.

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Thank you very much.

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I'd like to invite everyone to stand with me and pledge the flag.

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Thank you.

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Do we have any corrections or additions to our agenda today?

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There has been a request to just jog things around.

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And move up our discussion on, which one was that?

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Catherine, that we're moving forward?

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The proposal, Chair.

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Sorry, is to move the work plan presentation before the CEO report, because we'll have an outside presenter.

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Item five, moving up before item four.

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Do we have any public comment on items not on our agenda today?

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No public comments, Chair.

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Thank you.

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Does anybody have want to pull anything off our consent calendar or make a motion to approve?

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Chair, I recommend we put the, I mean, since we put the first 140 pages of the agenda packet in the consent calendar,

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it's just put the whole thing in the consent calendar.

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We've done a lot quicker.

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Overruled.

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Okay.

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I moved accepting the consent calendar.

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We have a motion.

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Do we have a second?

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Second.

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Thank you.

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Do we need a roll call vote on that?

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Yes, that's a clerk file.

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Could you please do a roll call vote?

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Yes, thank you, Chair.

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Alan?

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Yes.

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Alan?

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I.

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Byron?

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I.

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Nicklish?

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I.

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Nathan?

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I.

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Thada?

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I.

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That, then?

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Yes.

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To it's a vote key?

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Yes.

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By strategist?

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Aye.

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Chair, Kate.

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Aye.

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So we will be moving then to the next item.

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Hmm.

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Is the work plan presentation item number five on our agenda?

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Yes.

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Thank you, Chair.

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So our presentation on the community advisory councils fiscal year 2023 24 work plan includes an overview and discussion on battery monitoring in support of residential load shifting.

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So with that, I would like to welcome Chris Cook, our director of energy programs to present this item.

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Can you hear me?

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Oh, that's better.

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Great.

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So as I mentioned, I am Chris Cook director of energy programs at 3C and this afternoon I will be giving a presentation on the demand response work plan.

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So at 3C our power for good has a three-tier approach.

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First we source clean renewable energy and then we utilize that clean and renewable energy for electrification programs.

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So later do ag building and transport.

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And then finally now we have a demand response element with load, shifting and shaving.

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So this presentation I will be giving an overview related to several components of demand response.

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First the need for battery storage demand response from a high level state perspective.

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Next status of 3C's battery storage demand response pilot project.

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Then next steps with battery storage and load shifting.

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And finally a presentation from texture that does platforming, that has a platform analyzing load shifting.

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So first from that high level state perspective.

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Kiso is the California Independent System Operators.

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And what they do is they manage the high voltage lines and also the a wholesale energy market.

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And so they look at it kind of from a state level perspective and you can go on their website and you can see what's happening real time with power throughout the kiso system.

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And this graph that you see on the screen right here I took from May 22nd so two weeks before today.

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I think is a good representation of what's happening right now.

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This is specific to renewables and the trends there.

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So the blue line that's wind and you can see there's some variation there it is a little bit intermittent.

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It's fluctuates from approximately 5,000 megawatts to 2000 megawatts but it's not necessarily time dependent.

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However when you look at solar that orange or yellow line that one added those red dash lines at 6am and 8pm as everybody knows right now that's approximately sunrise and sunset.

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Well before 6am you have no power being produced from solar and after 8pm you have no power also but in the middle of the day you have approximately 17,000 megawatts being produced from solar.

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So that's you know a significant part of our renewable energy being provided for the system.

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And what that means in terms of overall supply trends you can see the part and green here of the graph again I added those red dash lines for reference.

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You know the before 6am after 8pm you have that wind that's renewable but then the solar takes over in the midday and you see that abundance of renewable supply available with the solar and the wind combined.

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And in fact you can see on the graph it dips down it has a surplus slightly of power available.

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But then you look at the evening time where there's the peak in the day and the solar is going away.

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So you have more demand and you have less supply of solar and that's when they need to ramp up other generations sources such as gas or imports to be able to make up that difference.

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But there is also another component in there that light kind of tan tan brown at the bottom and you can see that is charging during that midday time when you have that renewable you have the lower cost energy.

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And then it's discharging at those peak times when you're more reliant on non renewables there's more demand there's more cost.

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So you're able to shift that load and this is one where you see that steep incline of the peak and the need for other generation sources that's been commonly referred to as the duck curve.

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And now we're actually hearing it being referred to as the canyon because there's so much solar midday and then having to adjust so quickly the canyon is now what people are referencing.

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Here's another view from Kisos website on May 22 from CO2 emissions standpoint you can see you know that's there's a direct correlation there where when the solar is is no longer available.

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The emissions go up with it imports and gases being now being used.

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And then from a price map perspective again from this website I just took from 3 p.m. and 5 p.m. just with those two time differences you can't really it's hard to see on this screen but the medium price.

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Tripled in those in that time between 3 and 5 p.m. and if you look at it at noon sometimes it can go negative in price and then you look at it in the evening it can get significantly higher.

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So you can have that energy arbitrage where if you have a battery system what you can do is actually at certain situations midday you could be paid to charge the battery and then be paid significantly higher to discharge it.

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So there's a price benefit along with the renewables and other aspects.

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So as as I mentioned load shifting the shifting of load with battery storage has multiple benefits using cleaner power lower costs for everyone and more reliability for the grid and resiliency for customers if they are say a PSPS PG and he event there's an outage.

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They also have that battery and a commercial or residential or other location to be able to use this backup. So there's still a clear need for more battery storage.

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In terms of our own demand response pilot we had an RFP that was sent out we got four proposals back for respondents. Two of those we took forward with interviews one was demand response providers.

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DRPs were enrolled to be enrolled in a marketplace pricing platform so being able to pull on demand response providers when needed in this in this marketplace platform.

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And then another was behind the meter virtual power plant with incentive plants so this is more of a battery storage concept with being able to activate discharge charge at various times and incentivizing.

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For the panel it was made up of six staff of 3C from four different departments and overall it had a conclusion that these proposals all had clear drawbacks.

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So one of those was that was that looking at the cost of of the different pilots a lot of cases the cost of the pilots didn't necessarily outweigh the cost to the customer didn't necessarily outweigh the benefits of the pilot itself.

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And then for the battery storage ones there was limitations in terms of say a single battery manufacturer being able to be used so having potential participation limits related to.

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No different battery manufacturers and that could limit customer participation too.

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And then in terms of demand response itself it would be hard to validate that there's not double counting.

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So what that could mean is if kisos relying on a certain demand response.

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Low say a load shifting from the grid and that's not able to be achieved well then you know they have to be curtailments or other things happen to be able to make that happens we have to have assurance that what we're saying we're going to do we can provide to be able to meet the needs.

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But at the same time as mentioned before there's really clear benefits of demand response particularly as they relate to battery storage with all the benefits that we talked about so.

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So we do feel that it's important to keep pursuing this and and realize the the demand that demand response pilot so what we're going to be doing to further this is we're looking to refine the demand response pilot RFP scope so this will ensure that the proposals we get in are comparable we can have competitive.

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And then also that the scope is one where every proposal, if it meets the scope, would meet grid and customer needs.

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And then to help refine this RFP scope, we're launching a new battery rebate program, allowing staff to further analyze battery storage for load shifting.

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So this battery rebate program, this is one that would be focused on load shifting with residential customer rebates.

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And then for that, what we would be doing is we would be discharging at least 50% of the battery during peak hours.

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So really making sure that those batteries discharge and shift load during the critical times when it's needed.

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And that will allow us to realize a lot of the benefits that are there, but also track the load being shifted.

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And that provides a number of ways for potential analysis for us moving forward.

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We can look at participation rates with this battery rebate program.

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We can see specifically for low income what the reach is there, how we're doing with that customer base.

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We can see incentive methods, if front end rebates versus long term incentives, whether front end rebates can drive the participation rates.

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And then looking at overall load shifting impact, if we can get a good start with a battery rebate program in terms of load shifting, being able to have a sense of how that could six scale and the overall benefits that could be achieved.

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So with that, looking specifically at the load shifting impact, we did invite texture to speak, they have a platform that can track energy systems and in our case, you know, looking at batteries and load shifting and being able to quantify that.

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So with that, I'd like to pass it over to Eric and maybe Nicholas with texture.

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Thanks Chris, I could have to do everyone, I appreciate the introduction.

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My name is Eric Roth, I worked at a company called texture.

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Our kind of platform is really focused on data infrastructure.

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So just by way of background, on the head of business development and texture,

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I could make unfortunately the two thoughts that could make it tonight.

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But he sends a few words.

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My background just before we move on, I've been energy about 10 years, actually started as an attorney and all kind of focused on the demand side.

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And for the last seven kind of been focused on technology that can help.

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Both customers and companies understand their energy usage more thoroughly and that's what texture comes in.

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So pushing to the next slide, what we do is pretty simple.

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The mission of our company, if you go to the next slide, is we help energy companies be more data driven.

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And that includes installers of assets that include companies who manage assets and then of course utilities and folks like PC.

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So we met 3C and Chris about two months ago when he was considering this program and we've been in conversation sense.

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So very honored and pleased to present what we do, just a couple slides.

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If you move to the next slide, what we do is pretty simple.

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We're a platform to view and track your energy network.

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And so what that means is we have a platform that looks like a platform you can engage with where you can view.

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Individual homeowners and once they give permission.

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To connect whatever DER they might have whether it's an electric vehicle, a thermostat, solar inverter or a battery.

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You can view that asset in real time.

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You can understand whether it's plugged in, whether it's charging.

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If a battery, you can understand whether it's just actually any whether it's story.

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I thought it was that you can understand set points.

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And the idea is that organizations like 3C and others are able to view.

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All of the customers understand very specifically that assets and DERs they have in their home.

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And understand the real time implications of those assets, whether it's an EV or a battery.

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And all of this is powered by the end user, the homeowners permission.

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So if you go to the next slide.

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So what we are is a data platform.

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What we're not is a demand response company or a VPP.

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So we don't compete with companies like own connect or see power or voltage.

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Somebody's demand response companies that actually may have responded to the RFP.

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We're truly an diagnostic data platform that just allows the data to flow and be visualized on our platform.

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We also don't monetize the patient.

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So we don't charge based on connecting the device.

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Charge based on a traditional software model of a platform fee.

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We also don't build product in applications.

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And so what our customers do or the end user does with the battery, for example, is totally up to them.

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We don't have any perspective or interpretation of when a battery should discharge or store.

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That's entirely up to our companies and the end users.

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And so just to give you a sense of what the platform looks like.

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This is kind of what our customers see.

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So this gives you an opportunity to view all of the customers that have connected with the battery.

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Understand very specifically they're addressed when they added the battery.

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Kind of consumption of the battery production of a solar storage or solar area unit.

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For example, or of course the battery production.

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And if you look on the right, you can kind of click into the specific address or site as we call it.

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And understand very specifically the utility.

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But also market.

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And we can't marry that information with energy consumption and storage.

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Data.

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We also marry that with emissions data that we kind of put on the platform for our customers to understand.

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The initial impact of contaminant.

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And that allows our customers to view individual sites.

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You can go to the next slide.

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So the really do this.

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It's a pretty simple process.

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All of our customers rely on the end user or the homeowner to actually get permission and allow the data to flow.

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And so once a customer of ours has connected.

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An interface battery.

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The data will flow, but the connection process is a pretty simple process where if they've installed an interface battery.

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And our customers send them an email link.

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And then they go through this connect flow.

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And all they do is to put a simple information.

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It's your address.

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It's what is your specific battery.

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So whether it's in phase or solar edge or Franklin.

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And then they slide into their existing account.

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And they give us permission to view the data in real time.

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And that's it.

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And so what that actually looks like on the platform.

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This is an example of a battery view.

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And this is an example customer.

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You can see again.

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Very specifically.

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Customer information in terms of home address.

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Email where they're located on the grid.

224
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You can see what devices they can permission to view on our platform.

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And then on the right, you're able to understand and track battery storage and dispatch.

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So the bottom right and kind of the grade.

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Orc is a little bit of a Christmas speaking about this.

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The battery.

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Stories throughout the day and then discharge is at night.

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And so.

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It, you know, as the day goes on, the battery storage more and then the amount of a discharge at night.

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And you can track that.

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And if the goal of the platform is really to allow our customers to see this.

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Individual, but also.

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Company why.

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And so you can use our platform to view analytics.

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Do you analytics not just individual customers, but you're an entire number?

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That's all.

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Please strike more platform.

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I have to answer any questions, but I'd appreciate the opportunity.

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Great.

242
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Thank you, Eric.

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And you've got...

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With that, we're to our recommendations.

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So this memorandum provides the CAC overview of three C's,

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fiscal year 2023, 2024 work plan,

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the presentation on battery monitoring and supportive residential load shifting.

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So...

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Thank you.

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Thank you.

251
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Open it up to questions from the council.

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Lou?

253
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Thank you.

254
00:24:08,000 --> 00:24:09,000
Thank you.

255
00:24:09,000 --> 00:24:11,000
Thank you for the presentation, Chris.

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Just so I understand this idea would be that the residents

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would have lithium batteries in their homes,

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and they would sell back to the grid.

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Have you considered centralizing, would it make more sense,

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to centralize and have a battery farms, maybe in crystal planes,

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near the topest solar plant, or something similar to that,

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where you could bond the capital costs,

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based on the pricing differential between daytime and nighttime.

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Versus decentralized, where you'd have less control.

265
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Thank you, Dr. Ballman.

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It is the exact right question, and on the power supply space,

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that is exactly what we're doing.

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So we just did an RFO.

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We'll mention it in a moment here,

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where we've solicited developer proposals

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for energy storage and generation,

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but that larger scale sort of bang for your buck opportunity

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to whether it is utilize that battery for its capacity.

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It's a resource adequacy,

275
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or to arbitrage the energy cost of low energy

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dollars in the morning.

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That's more of a power supply effort that's done in front of the meter.

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The effort here with the demand response is less about meeting

279
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or load serving entity requirements,

280
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but empowering individual customers to be able

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to control their own consumption and energy usage,

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that we'll have a benefit in the overall grid area,

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but very much at the margins,

284
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not at the scale that front of the meter can do,

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or frankly at the price point,

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which is one of the reasons that the recommendation was

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not to move forward with one of the A proposal from the RFP we ran,

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because it's not cost effective at this point to do so.

289
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And Chris, I'll let you follow up on this,

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but I think what the proposal is is pair of residential demand,

291
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or residential battery incentive program,

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which we'll talk about under a different item,

293
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with the learning opportunity that texture provides.

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For those that don't know,

295
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we currently rely on the IOUs,

296
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to provide us metering and customer management services.

297
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So we get data only through the IOUs,

298
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and only on interval basis and not in a real time basis.

299
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Getting the opportunity at a customer election,

300
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so you are going slowly customer by customer

301
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to see how customers are using and consuming energy in real time,

302
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is light years ahead of where we currently are with the IOUs.

303
00:27:01,000 --> 00:27:05,000
And then that learning helps us to inform how can we design

304
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a demand response program that can be cost effective.

305
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So that's the longer term goal with what we want to accomplish.

306
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And Chris, happy to fill you out onto that.

307
00:27:15,000 --> 00:27:17,000
Yeah, I think you said it well. Thank you.

308
00:27:25,000 --> 00:27:27,000
Yeah, I was curious too,

309
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if you've rolled this out in another area of community

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and kind of what problems you ran into or successes that you've had with that too.

311
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Because I would think that would have to be bundled with the rebate

312
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or the battery backup because you're relying on the end user

313
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to enroll themselves.

314
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And I think there's already kind of maybe an uncomfortableness

315
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with releasing that information.

316
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So the incentive would be the battery rebate

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coupled with obviously the enrollment into the program.

318
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But I did know texture had seen something like this

319
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in another community.

320
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You know, in another region of the country,

321
00:28:01,000 --> 00:28:04,000
if you could speak to that, that would be great.

322
00:28:04,000 --> 00:28:07,000
Yeah, great question.

323
00:28:07,000 --> 00:28:12,000
We haven't engaged specifically with another program with these parameters

324
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in other parts of the country.

325
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The way we tend to work is customers with a lot of themselves,

326
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and so we rely on our customers and companies to actually do the marketing.

327
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So that would be up to 3CE in this case.

328
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Yeah.

329
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And I would add that the front end rebate is a model that's been done

330
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by other CCAs that we've seen and they have gotten participation in it.

331
00:28:46,000 --> 00:28:50,000
And one of the things we'll be looking at is ensuring that they enroll

332
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in a load shift tracking platform before the rebate is given,

333
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because it's really important to us to be able to have that information

334
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to quantify and refine what we're doing.

335
00:29:03,000 --> 00:29:07,000
And just real quick, so that would be demand response

336
00:29:07,000 --> 00:29:09,000
would also be included in that as well.

337
00:29:09,000 --> 00:29:12,000
So demand response, then the data management,

338
00:29:12,000 --> 00:29:16,000
and then the battery rebate, would it all be together?

339
00:29:16,000 --> 00:29:22,000
Yeah, so what I would say is, so the battery rebate program is a separate program

340
00:29:22,000 --> 00:29:27,000
that we'll be presenting on, but it's used to refine for our demand response pilot

341
00:29:27,000 --> 00:29:28,000
that we'll be doing.

342
00:29:28,000 --> 00:29:31,000
So when we do a future demand response pilot,

343
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we'll absolutely be tracking any load shifting or other things that happen.

344
00:29:35,000 --> 00:29:40,000
But the battery rebate program is kind of its own standalone load

345
00:29:40,000 --> 00:29:45,000
shifting with tracking, so we would be doing that with a future demand response

346
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pilot we'd have to be able to do, like we mentioned,

347
00:29:48,000 --> 00:29:52,000
ensure that we're not double counting our demand response and other aspects

348
00:29:52,000 --> 00:29:55,000
that we want to make sure we're accurately tracking.

349
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But for now, it's more with the actual battery rebate program.

350
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If that makes...

351
00:30:00,000 --> 00:30:22,000
And if I could also add that, you know, in speaking with other CCAs that have run demand response programs, where they have direct control of batteries and in our research, what we found is that the customer reticenses really about giving over control of that battery.

352
00:30:22,000 --> 00:30:38,000
But just in terms of tracking the use, I think there's much more receptivity, especially if it is tied to the incentive of helping to pay for the purchase and installation of the battery.

353
00:30:38,000 --> 00:30:42,000
So it would be end phase batteries only. Is that right?

354
00:30:42,000 --> 00:30:52,000
Does that, because the technology with those different reporting capabilities of the different batteries, I know it's changing it like light speed.

355
00:30:52,000 --> 00:30:58,000
Yeah, and I didn't know if there were going to be other battery manufacturers that would be a part of it to just from a cost standpoint.

356
00:30:58,000 --> 00:31:07,000
I don't know, Eric, if you wanted to speak to the availability of safe telemetry on battery storage and how you work with the manufacturers.

357
00:31:07,000 --> 00:31:09,000
Yeah, great question.

358
00:31:09,000 --> 00:31:23,000
We are advice agnostic. So we're able to integrate with kind of a reading, no VMs, we worked with some of folks on three CE to identify what those are in the service territory.

359
00:31:23,000 --> 00:31:31,000
We claim we are integrated with n-phase test solar edG, which tends to be kind of it's an 8020 in batteries.

360
00:31:31,000 --> 00:31:41,000
But that tend to be the reading manufacturers, our platform, we don't reverse engineer any of these connections we work directly with manufacturers.

361
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So those are the top we integrate with today, but we're very open to integrated with more future.

362
00:31:49,000 --> 00:32:01,000
And one comment about probably necessarily apologize, but other CCAs doing this. We've had conversations with leaning on that, not sure if familiar with that.

363
00:32:01,000 --> 00:32:08,000
That organization that would be executive director last week to kind of talk about this type of monitoring for other CCAs.

364
00:32:08,000 --> 00:32:15,000
So other folks are thinking about it, but haven't we haven't implemented a program like this yet, but it is out there.

365
00:32:19,000 --> 00:32:35,000
And if I just want to stress the importance of what Eric was just sharing that technology or device agnostic stance, one of the challenges in the RFP proposal is that they are very device oriented.

366
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So they have there preferred technology that they work with.

367
00:32:40,000 --> 00:32:48,000
That limits the number of batteries that solar installers can work with. So from an installer standpoint, it's very limiting.

368
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Whether they could utilize our proposed battery program effectively, because they have their deals in place and their supply contracts in place.

369
00:32:58,000 --> 00:33:09,000
The ability to work across multiple platforms, even if it's not 100% of every platform that's going to be utilized, is a really significant development

370
00:33:09,000 --> 00:33:15,000
that texture adds that a lot of other monitoring areas are still trying to catch up to.

371
00:33:15,000 --> 00:33:32,000
But it's really significant because it's allowing customers to make decisions about what technology they want to utilize, what installer they want to utilize, and it doesn't limit what they're going to be utilizing.

372
00:33:32,000 --> 00:33:35,000
Council Member Johnson.

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00:33:35,000 --> 00:33:41,000
Thank you, sir. We really, traffic was terrible.

374
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Light years ahead, this kind of data collection, light years ahead, you said.

375
00:33:46,000 --> 00:33:52,000
Mr. Shaw, do we have to share the data with PG&E?

376
00:33:53,000 --> 00:33:58,000
Technically, PG&E will have the data, because, again, they are building in customer agent.

377
00:33:58,000 --> 00:34:05,000
So I would consider PG&E a partner as we move forward in anything that we're going to be doing.

378
00:34:05,000 --> 00:34:13,000
But if we were to get to that step, we'd have to have some discussions about how we're going to do that, but we have all shared customers in PG&E has the data.

379
00:34:13,000 --> 00:34:23,000
They won't have access to the unique user interface that texture might add, but PG&E has more data access than we do.

380
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And would you anticipate after reviewing and analyzing the data that's collected and lessons learned regarding how we may design and refine our demand response programs in the future?

381
00:34:37,000 --> 00:34:41,000
Would you anticipate we would share those with other CCAs?

382
00:34:41,000 --> 00:34:44,000
There's lessons learned, I should say.

383
00:34:44,000 --> 00:34:54,000
I would say that the CCAs are very much a collaborative environment where we're constantly looking at the innovations of each other and then seeing how we can improve upon them.

384
00:34:54,000 --> 00:34:57,000
So, absolutely, we'd be sharing that information.

385
00:34:57,000 --> 00:35:04,000
The other thing that we'll be monitoring very closely is the success of the existing demand response programs.

386
00:35:04,000 --> 00:35:08,000
There are programs out there that a lot of customers are utilizing.

387
00:35:08,000 --> 00:35:10,000
The commission is put in place.

388
00:35:10,000 --> 00:35:12,000
We've made available to our customers.

389
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So they're not branded 3CE programs, but they're there in their effective.

390
00:35:17,000 --> 00:35:20,000
And we want to see how that develops over the next few years.

391
00:35:20,000 --> 00:35:29,000
And when last question, at what juncture we launched this with texture, at what juncture do we look back and say,

392
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And of course we're going to analyze the data, but we look back and see this is effective.

393
00:35:33,000 --> 00:35:34,000
This is helping.

394
00:35:34,000 --> 00:35:37,000
Do we have a time frame in mind for that?

395
00:35:37,000 --> 00:35:40,000
I know we have a contact, I anticipate a contract.

396
00:35:40,000 --> 00:35:42,000
Time frame, I'm sure.

397
00:35:42,000 --> 00:35:54,000
Yes, with that one, we're looking at the first six months of the program launch to go back and re-evaluate or the first 500,000 in rebates given.

398
00:35:54,000 --> 00:35:59,000
Whichever one comes first, we go back and evaluate and that's in our next presentation.

399
00:35:59,000 --> 00:36:06,000
And one of the big focuses that too will be just income qualified customers, making sure we're reaching out to them effectively.

400
00:36:06,000 --> 00:36:10,000
But the whole tracking will be part of that also.

401
00:36:10,000 --> 00:36:11,000
Thank you.

402
00:36:11,000 --> 00:36:16,000
Council Member Byron.

403
00:36:16,000 --> 00:36:17,000
Chair, thank you.

404
00:36:17,000 --> 00:36:19,000
Thank you very much.

405
00:36:20,000 --> 00:36:25,000
I was going to try and keep it to two, but I think the first one is just a yes or no question.

406
00:36:25,000 --> 00:36:27,000
I may have missed this.

407
00:36:27,000 --> 00:36:34,000
This new energy storage program, rebate program, is it integrated with PV?

408
00:36:34,000 --> 00:36:39,000
Because I mean, are we encouraging people to put in batteries without photovoltaics or.

409
00:36:39,000 --> 00:36:42,000
Yes, so that'll be in the next presentation.

410
00:36:42,000 --> 00:36:50,000
We actually have a rebate incentive for somebody say who's.

411
00:36:50,000 --> 00:36:58,000
Doesn't have solar or get solar at the time of the battery versus somebody who already has solar, maybe they're an M1.0 or 2.0 customer in the switch over to.

412
00:36:58,000 --> 00:37:03,000
MBT, you know, they get an additional.

413
00:37:03,000 --> 00:37:05,000
Re-bate with with that.

414
00:37:05,000 --> 00:37:06,000
Yeah, I'm just trying to understand.

415
00:37:06,000 --> 00:37:09,000
Are we encouraging people to just put in batteries with this program?

416
00:37:09,000 --> 00:37:11,000
They, they can without solar.

417
00:37:11,000 --> 00:37:21,000
Yes, that is an option, but the solar is definitely one where it would be part of it and a lot of our outreach will be kind of focused in that knowing that people with solar.

418
00:37:21,000 --> 00:37:22,000
So you actually.

419
00:37:22,000 --> 00:37:23,000
Please.

420
00:37:23,000 --> 00:37:28,000
These are another question, and this is a little bit out of the order I was going to ask, but.

421
00:37:28,000 --> 00:37:33,000
You know, the former CEO of this organization, I had a conversation with him years ago.

422
00:37:33,000 --> 00:37:36,000
I don't remember his name.

423
00:37:36,000 --> 00:37:40,000
And he said something to me that was just, you know, you just don't say this.

424
00:37:40,000 --> 00:37:42,000
We're going to go to 100% renewables.

425
00:37:42,000 --> 00:37:46,000
Why do we need to worry about energy efficiency and demand response?

426
00:37:46,000 --> 00:37:49,000
And of course, when you work at the energy commission, you drink the cool aid.

427
00:37:49,000 --> 00:37:53,000
I mean, those are those are the loading order.

428
00:37:53,000 --> 00:37:55,000
So why are we worrying about this?

429
00:37:55,000 --> 00:37:57,000
What's the real purpose here?

430
00:37:57,000 --> 00:38:00,000
Are we are we under some RA obligation that we have to meet?

431
00:38:00,000 --> 00:38:02,000
Are we just trying to be good citizens?

432
00:38:02,000 --> 00:38:03,000
Don't give me wrong.

433
00:38:03,000 --> 00:38:06,000
That's, those are good, those are good reasons.

434
00:38:06,000 --> 00:38:07,000
But why are we doing this?

435
00:38:07,000 --> 00:38:09,000
We're spending money on DR.

436
00:38:09,000 --> 00:38:14,000
Maybe when we get to 100% renewable, we don't want to restrict how much energy people use.

437
00:38:14,000 --> 00:38:17,000
As long as it's renewables and efficient.

438
00:38:17,000 --> 00:38:19,000
Why, why would we worry about all this?

439
00:38:19,000 --> 00:38:21,000
So it's kind of a long term question.

440
00:38:21,000 --> 00:38:26,000
Are we doing this because there's something requirement of imposed upon us to do it?

441
00:38:27,000 --> 00:38:36,000
So from a strategy standpoint, I think staff have tried to make this clear through the number of presentations we've had.

442
00:38:36,000 --> 00:38:38,000
But this comes down to two things.

443
00:38:38,000 --> 00:38:43,000
There is no requirement from the CPUC or otherwise.

444
00:38:43,000 --> 00:38:48,000
But there is I think the direction from the policy for that we want to encourage battery storage.

445
00:38:48,000 --> 00:38:51,000
Because it helps further our climate goals.

446
00:38:51,000 --> 00:39:02,000
So giving customers the ability to control their energy consumption to be a part of the reliability solution allows customers to help manage some of their cost.

447
00:39:02,000 --> 00:39:08,000
It's going to help in at the margins around those net peak hours.

448
00:39:08,000 --> 00:39:13,000
So we can be a 100% renewable, but renewable is still intermittent.

449
00:39:13,000 --> 00:39:19,000
So you need a significant amount of battery storage to make that feasible at 100%.

450
00:39:19,000 --> 00:39:24,000
Giving customers the ability to be part of a response in the long term.

451
00:39:24,000 --> 00:39:26,000
And this is a long term play.

452
00:39:26,000 --> 00:39:30,000
It's going to be when does demand response become meaningful?

453
00:39:30,000 --> 00:39:33,000
Probably when we have vehicle to grid capabilities.

454
00:39:33,000 --> 00:39:37,000
Probably whenever we have penetration of storage at a much higher level.

455
00:39:37,000 --> 00:39:38,000
It's good answer.

456
00:39:38,000 --> 00:39:41,000
So we're basically doing this to save customers money in the long run.

457
00:39:41,000 --> 00:39:44,000
That's a good reason and it has grid benefits on the side.

458
00:39:44,000 --> 00:39:46,000
And add grid reliability.

459
00:39:46,000 --> 00:39:51,000
So this is a little more difficult question.

460
00:39:51,000 --> 00:39:58,000
I think if I understand the response to the RFPs were pretty much non-responsive.

461
00:39:58,000 --> 00:40:00,000
They weren't what you were looking for.

462
00:40:00,000 --> 00:40:02,000
So what happened?

463
00:40:02,000 --> 00:40:05,000
Are we asking for stuff that hasn't been done in DR before?

464
00:40:05,000 --> 00:40:07,000
Or do the response?

465
00:40:07,000 --> 00:40:08,000
It's missed the boat on this.

466
00:40:08,000 --> 00:40:11,000
Because I understand you're going to refine it and you're going to put it out again.

467
00:40:11,000 --> 00:40:14,000
Because you want to move forward with some programs, some DR programs.

468
00:40:14,000 --> 00:40:16,000
So the scope would happen.

469
00:40:16,000 --> 00:40:19,000
Did they all just try and sell their batteries to us?

470
00:40:19,000 --> 00:40:20,000
Is that what they were doing?

471
00:40:20,000 --> 00:40:24,000
Yeah, I mean, my take on it is you look at the different proposals that were done.

472
00:40:24,000 --> 00:40:28,000
And they were pretty broad in terms of what they provided.

473
00:40:28,000 --> 00:40:39,000
So I think I think us going back and using things like that battery rebate program to refine the scope in a way that we're getting apples to apples comparison.

474
00:40:39,000 --> 00:40:45,000
Getting it quite price competitive and in the scope that addresses directly our needs.

475
00:40:45,000 --> 00:40:46,000
I think is important.

476
00:40:46,000 --> 00:40:54,000
So I think it's one where quite frankly, I think we need a little more time to refine that scope to be exactly what we need it.

477
00:40:54,000 --> 00:40:56,000
And then we can send it back out.

478
00:40:56,000 --> 00:41:04,000
And I don't think it's ahead of, I think it's right where things are going and it's part of that.

479
00:41:04,000 --> 00:41:06,000
But I don't think we're ahead of it.

480
00:41:06,000 --> 00:41:13,000
I think when we refine the scope, we'll be getting proposals that meet our customer needs.

481
00:41:13,000 --> 00:41:14,000
Thank you.

482
00:41:14,000 --> 00:41:15,000
Good luck.

483
00:41:15,000 --> 00:41:16,000
Thank you.

484
00:41:16,000 --> 00:41:18,000
And I just have a follow-up comment.

485
00:41:18,000 --> 00:41:20,000
So one of your questions, Jeff.

486
00:41:20,000 --> 00:41:27,000
I know I shared with Rob several months ago an article in the press about Green Mountain energy.

487
00:41:27,000 --> 00:41:29,000
I think it is in Vermont.

488
00:41:29,000 --> 00:41:35,000
Which is, I believe there are a power company utility.

489
00:41:35,000 --> 00:41:41,000
But they were providing batteries to all of their customers.

490
00:41:41,000 --> 00:41:46,000
And their study showed that it was going to save their customers money.

491
00:41:46,000 --> 00:41:52,000
So you know, they're in a very different market in geography and regulatory environment than we are.

492
00:41:52,000 --> 00:41:58,000
But I think the idea with this is that it's going to benefit everybody.

493
00:41:59,000 --> 00:42:05,000
Any questions in the other locations too?

494
00:42:05,000 --> 00:42:08,000
Okay, please speak up.

495
00:42:08,000 --> 00:42:09,000
Yeah.

496
00:42:09,000 --> 00:42:10,000
So I have a question.

497
00:42:10,000 --> 00:42:12,000
This is Katie Davis.

498
00:42:12,000 --> 00:42:18,000
And I think the program to encourage batteries is great.

499
00:42:18,000 --> 00:42:20,000
We need a lot more of them on the grid.

500
00:42:20,000 --> 00:42:22,000
So I like the instead of idea.

501
00:42:22,000 --> 00:42:25,000
I have a word of warning with all of these.

502
00:42:26,000 --> 00:42:31,000
As all these diverse science programs come online and there are overlaps.

503
00:42:31,000 --> 00:42:34,000
And in particular with these integrations.

504
00:42:34,000 --> 00:42:35,000
Because I have this experience.

505
00:42:35,000 --> 00:42:40,000
I have solar battery trying to join a slow virtual power plant.

506
00:42:40,000 --> 00:42:44,000
And to that I know you see a suddenly helping medicine.

507
00:42:44,000 --> 00:42:49,000
The IOU said you're already using a demand response system.

508
00:42:49,000 --> 00:42:54,000
You know, which tells you to power off things when you need to.

509
00:42:54,000 --> 00:42:55,000
So we onion roll from that.

510
00:42:55,000 --> 00:42:57,000
And then we try to get that in roll.

511
00:42:57,000 --> 00:43:00,000
And you're like, no, now you're going to be something called leap.

512
00:43:00,000 --> 00:43:03,000
And we have no idea what that is.

513
00:43:03,000 --> 00:43:10,000
And there's no fight number or email for them because they're because they're at so party.

514
00:43:10,000 --> 00:43:11,000
Kind of like you.

515
00:43:11,000 --> 00:43:17,000
And so we have to ask experts and finally figured out that my husband signed up for this.

516
00:43:17,000 --> 00:43:22,000
That tells you when to charge your car.

517
00:43:22,000 --> 00:43:26,000
So always it's like a lot of weeks to time and effort.

518
00:43:26,000 --> 00:43:28,000
Very confusing for consumers.

519
00:43:28,000 --> 00:43:30,000
And then she also figured out this.

520
00:43:30,000 --> 00:43:32,000
You think about rolling out a program like this.

521
00:43:32,000 --> 00:43:37,000
The thing about this kind of overlaps and and and problems that are.

522
00:43:37,000 --> 00:43:39,000
Up there right now.

523
00:43:39,000 --> 00:43:41,000
If it is the way he's work.

524
00:43:41,000 --> 00:43:44,000
So to that in mind.

525
00:43:45,000 --> 00:43:52,000
Great comment that is something that we're looking into really appreciate it.

526
00:43:52,000 --> 00:43:56,000
We have any other council members.

527
00:43:56,000 --> 00:44:03,000
Feel free to speak up in the remote sites because it's hard to see everybody on the screen here.

528
00:44:03,000 --> 00:44:10,000
I had a couple of questions myself if everyone else is spoken their piece.

529
00:44:10,000 --> 00:44:17,000
In in your staff report it talked about putting a focus on commercial demand response.

530
00:44:17,000 --> 00:44:21,000
And I wonder if you could just give us a little bit more specificity about that.

531
00:44:21,000 --> 00:44:30,000
It's not something that we've talked about a whole lot during the the last year here.

532
00:44:30,000 --> 00:44:33,000
I'll take a stab in and then turn it to Chris.

533
00:44:33,000 --> 00:44:43,000
So when we started the the discussion one of the first places we started was an assessment of customers looking at their load and their ability to respond.

534
00:44:43,000 --> 00:44:49,000
So commercial customers statistically while a smaller number of customers much more significant load.

535
00:44:49,000 --> 00:44:57,000
So you know the three areas that that Chris identified that we didn't move forward at this point was cost effectiveness.

536
00:44:57,000 --> 00:45:01,000
The ability to verify whether or not.

537
00:45:00,000 --> 00:45:12,000
We're not people who are already in a demand response program exactly what Councilwoman Davis, which is identified, and then that battery issue.

538
00:45:12,000 --> 00:45:27,000
So, in the commercial space, you're addressing two of three of those, which is you're moving it outside of the small battery, you can do larger batteries, and you get a much better bang for your buck in terms of actual demand response.

539
00:45:27,000 --> 00:45:37,000
So, it's really about, if there's anywhere that there's a solution where demand response can be cost effective, we want to investigate that area.

540
00:45:37,000 --> 00:45:48,000
And it's likely a focus for the staff over the summer next part of next year to further refine some proposals to think about whether or not it makes sense to move forward there.

541
00:45:48,000 --> 00:46:02,000
And I were calling correctly when early on when we were talking about demand response that didn't we do a demand response commercial program a couple of years ago, and we found that it wasn't very effective.

542
00:46:02,000 --> 00:46:07,000
So, is that that's just a learning experience that we try to figure out how to make it work better.

543
00:46:07,000 --> 00:46:20,000
That's a, we did a behavioral demand response program where we utilize the flex alert to tell customers, you know, when there is a flex alert reduce your, your consumption.

544
00:46:20,000 --> 00:46:28,000
So, it wasn't given customer the two things that they need to do to be able to respond education and actual tools to do so.

545
00:46:28,000 --> 00:46:39,000
And we were counting on customers to be able to respond and what we determined in follow up conversations with those customers is while the dollar amount was really significant.

546
00:46:39,000 --> 00:46:44,000
And I believe it was a dollar 50 a kilowatt, so 150 dollars of megawatt.

547
00:46:44,000 --> 00:46:48,000
Oh, I'm sorry, $1,500 a megawatt.

548
00:46:48,000 --> 00:46:54,000
That's a significant cost, but most commercial entities said that's not enough for me to change my operation.

549
00:46:54,000 --> 00:47:05,000
I am in the business of building widgets and not in the business of producing nano watts, but still those customers who did not change their operation.

550
00:47:05,000 --> 00:47:20,000
If their performance was improved over a baseline of I think two weeks prior, which was much more dependent on whether than any proactive steps that the customer would have taken, they would have profited from the program.

551
00:47:20,000 --> 00:47:31,000
So it was an intended program and if you recall a few years ago when we did that, we did not expect that it was going to lead to any actual demand response and change in behavior.

552
00:47:31,000 --> 00:47:44,000
But we wanted to do it for the education and be able to point that out to the commission because at the time the commission was looking to require a behavioral demand response program of all LSEs.

553
00:47:44,000 --> 00:47:52,000
So apples and oranges between what that was and what we think is necessary to get actual response.

554
00:47:53,000 --> 00:47:57,000
Do we have any further comments from the council?

555
00:47:57,000 --> 00:48:01,000
Chris, thank you very much for that report.

556
00:48:01,000 --> 00:48:02,000
Appreciate it.

557
00:48:02,000 --> 00:48:14,000
And I just want to thank Eric for attending, taking the time with us, walking through the platform really appreciate your time and your willingness to share your expertise with us.

558
00:48:15,000 --> 00:48:16,000
Thank you all.

559
00:48:16,000 --> 00:48:20,000
We have any public comment on this item.

560
00:48:20,000 --> 00:48:22,000
No public comment, sure.

561
00:48:22,000 --> 00:48:26,000
Thank you.

562
00:48:26,000 --> 00:48:32,000
So we're going to go to the CEO report next, I believe.

563
00:48:32,000 --> 00:48:33,000
Thank you, Chair.

564
00:48:33,000 --> 00:48:40,000
So in the CEO report, I'm going to take it a little bit out of order because I'm going to have chief operating officer, Mr. Dichoniel,

565
00:48:40,000 --> 00:48:45,000
walk through the 100% renewable energy update.

566
00:48:45,000 --> 00:48:51,000
And what you see on the first page is really a lot of work around staffing.

567
00:48:51,000 --> 00:49:00,000
So I appreciate both the human resource effort and then the management effort to go through and identify candidates to bring them on board.

568
00:49:00,000 --> 00:49:07,000
The investments that you're seeing here in terms of staff around energy programs, data analysts,

569
00:49:07,000 --> 00:49:16,000
our communications and engagement with underserved communities, our deputy county council who, or I'm sorry.

570
00:49:16,000 --> 00:49:24,000
Maybe maybe a Freudian slip, our deputy general council who came from the county council's office in Monterey,

571
00:49:24,000 --> 00:49:28,000
as well as Operation Management and the Power Services area.

572
00:49:28,000 --> 00:49:35,000
These are all really significant investments to our operations, both on the power services side and the program space.

573
00:49:35,000 --> 00:49:45,000
Really happy to see these hires. There's a lot of other sort of movement and promotions within the agency and some other significant hires that are days away.

574
00:49:45,000 --> 00:49:59,000
So really looking forward, I think we've we've tipped over to 40 employees for the first time meeting that we're cutting in to what was sort of a systemic.

575
00:50:00,000 --> 00:50:14,000
So we still have other positions and I think additional growth in the agency will be necessary, especially as more and more energy assets come online as the number of PPAs were operating increases.

576
00:50:14,000 --> 00:50:29,000
The need to optimize those operations in the market, the settlement and back end of making sure that we're settling out all of the payment obligations are really significant sophisticated operations.

577
00:50:29,000 --> 00:50:37,000
So I see even beyond the positions we have currently that we may grow in that space in particular.

578
00:50:37,000 --> 00:50:44,000
The other item that I just wanted to note if you were at the Operations Board or we're listening into the Operations Board.

579
00:50:44,000 --> 00:50:53,000
The Operations Board have established an ad hoc committee to look at sort of the structure of communications.

580
00:50:53,000 --> 00:51:03,000
At 19 members on the policy board and 19 members on the Operations Board that's 38 I can no longer say I have more bosses than employees.

581
00:51:03,000 --> 00:51:22,000
But it's a significant number and I think the issues have been around sort of how do we communicate the non seeded member agencies, how does that allocation of seats work what are the responsibilities for those individuals that are in those permanent seats to help us communicate the other members.

582
00:51:22,000 --> 00:51:38,000
How are we using city selection committees and other formal processes to do that so they're working on that and that's their task over the summer and then as they conclude any recommendations to come out of that will be taking to the policy board.

583
00:51:38,000 --> 00:51:48,000
And with that, if I'll pause and take any questions on the two pieces I shared before turning it over to Dennis and we can bring up his PowerPoint.

584
00:51:48,000 --> 00:51:53,000
Are there any questions for me?

585
00:51:53,000 --> 00:51:55,000
Great.

586
00:51:55,000 --> 00:51:57,000
John, do you want to bring up the PowerPoint?

587
00:51:57,000 --> 00:52:01,000
Excuse me, we do have a question from council member Byron.

588
00:52:01,000 --> 00:52:03,000
So I have a feeling.

589
00:52:03,000 --> 00:52:09,000
Steiko Niel is going to talk about interconnection and piece pph challenges, right?

590
00:52:09,000 --> 00:52:10,000
That's right.

591
00:52:10,000 --> 00:52:14,000
So this governance challenge that you've identified.

592
00:52:14,000 --> 00:52:17,000
I'm not quite sure I understand the way you were to that but.

593
00:52:17,000 --> 00:52:23,000
How how's how significant do you think that is?

594
00:52:23,000 --> 00:52:25,000
I mean, this is this is a big challenge.

595
00:52:25,000 --> 00:52:30,000
The geographical area is so large that like you say so many different jurisdictions.

596
00:52:30,000 --> 00:52:35,000
Is it is it causing some difficulty for for governing this organization?

597
00:52:35,000 --> 00:52:42,000
It is probably an administrative challenge and you all are experiencing it as well.

598
00:52:42,000 --> 00:52:46,000
You know, needing to have a certain number of set remote locations.

599
00:52:46,000 --> 00:52:48,000
How you notice those having them be staffed.

600
00:52:48,000 --> 00:52:50,000
Uniform every time.

601
00:52:50,000 --> 00:52:52,000
So the customers have a sense of where they're going.

602
00:52:52,000 --> 00:52:54,000
These are the types of challenge.

603
00:52:54,000 --> 00:52:57,000
They're easy relatively easy to overcome.

604
00:52:57,000 --> 00:53:00,000
But they require some purposeful thought around them.

605
00:53:00,000 --> 00:53:03,000
But you know, we have a very engaged board.

606
00:53:03,000 --> 00:53:07,000
We have an operations board that is looking at some of the challenges.

607
00:53:07,000 --> 00:53:10,000
I wouldn't say that they're significant in any way.

608
00:53:10,000 --> 00:53:17,000
I just think that at 35 member agencies and two boards of nineteen.

609
00:53:17,000 --> 00:53:25,000
There are some needs to put in some better communications and procedures so that we're all operating in the same space.

610
00:53:25,000 --> 00:53:27,000
So, you know, one area.

611
00:53:27,000 --> 00:53:29,000
I mentioned the city selection committee.

612
00:53:29,000 --> 00:53:38,000
Currently members can have an MOU amongst themselves or some other agreement or utilize the city selection committee.

613
00:53:38,000 --> 00:53:47,000
Well, that means the relationship and how people are sharing information among joint seats changes from one area to the other.

614
00:53:47,000 --> 00:53:54,000
And it's more about unifying a lot of that communication so that everybody feels they're a part of the agency.

615
00:53:54,000 --> 00:53:59,000
I'm really glad to see that this is operations board is taking this up.

616
00:53:59,000 --> 00:54:05,000
I mean, that's a heads-up approach to a maybe a problem that may grow bigger at some point.

617
00:54:05,000 --> 00:54:06,000
Thank you.

618
00:54:06,000 --> 00:54:11,000
Yeah, I'd like to just like to follow up and say, I'm really glad to see that that's happening also.

619
00:54:11,000 --> 00:54:17,000
I've attended most of the policy and operations board meetings since our inception.

620
00:54:17,000 --> 00:54:22,000
And, you know, with that many people sitting especially on the policy board.

621
00:54:22,000 --> 00:54:30,000
If there's anything that there's any difference of opinion on and everybody wants to say their peace, it just takes a huge amount of time.

622
00:54:31,000 --> 00:54:43,000
And the turnover in the composition of those boards is challenging because all of us here know that it's a complicated business and it's hard when it's new faces all the time.

623
00:54:43,000 --> 00:54:56,000
So I know there's been an effort to keep city members in the loop when they're not sitting on the board in between times, but it is a big challenge and look forward to some creative solutions.

624
00:54:56,000 --> 00:55:01,000
Thank you, Chair. John, can you bring up the presentation?

625
00:55:04,000 --> 00:55:18,000
Good afternoon, Chair Capron and other council members, Dennis Teachoneel. She's operating officer here to provide an update on our progress on our getting to 100% clean and renewable power.

626
00:55:19,000 --> 00:55:26,000
I want to start with going back to when we adopted this policy in September of 2020.

627
00:55:26,000 --> 00:55:34,000
The policy board decided that there's a more impactful path we could pursue.

628
00:55:34,000 --> 00:55:47,000
And the discussions at the time pertain to one, you know, what we were doing at the time was purchasing renewable power from existing power plants and buying what we say.

629
00:55:47,000 --> 00:56:05,000
And the parlance is carbon free attribute purchasing and it was identified that there's a more impactful way to go about it securing and focusing on long term contracting does produce new projects being built with the ultimate goal of displacing the existing conventional fleet.

630
00:56:05,000 --> 00:56:16,000
So that was one aspect for why we adopted this 100% policy. The second was there was a lot of focus on regulatory accounting mechanism called the power content level.

631
00:56:16,000 --> 00:56:25,000
Our content level most folks are familiar with that, but there there are some weaknesses to it, which I want to illustrate here.

632
00:56:25,000 --> 00:56:30,000
And it was part of the decision to adopt the new policy.

633
00:56:30,000 --> 00:56:45,000
And what I know there's a lot of information here and I'll talk as you as you look at it, but if you look at the far right, that is those percentages represent the mix for PG&E of their power supply based on the retail sales.

634
00:56:45,000 --> 00:56:49,000
And that's what shows up on the power content level.

635
00:56:49,000 --> 00:56:55,000
But what I've presenting to you here is what are the volumes that drove those percentages.

636
00:56:55,000 --> 00:57:08,000
And on the left hand side is really what everything PG&E procured and this is public information you can request from the PUC about those volumes.

637
00:57:08,000 --> 00:57:24,000
And what is what and I'm doing this to highlight that this regulatory accounting is somewhat flawed and what what it's showing is that 25.5% of PG&E's procurement supply was from natural gas.

638
00:57:24,000 --> 00:57:29,000
But the CEC who administers the power content level has this.

639
00:57:29,000 --> 00:57:34,000
This arcane hard to understand rule called over procurement adjustment mechanism.

640
00:57:34,000 --> 00:57:40,000
Maybe council member Byron can help us understand that, but.

641
00:57:40,000 --> 00:57:50,000
Yeah, but it's what it does is what if a load serve an entity over procures, they have a way of cutting the volumes in the falling order.

642
00:57:50,000 --> 00:57:57,000
They first cut natural gas and then they will cut these other fuels.

643
00:57:57,000 --> 00:58:02,000
You know, they go natural gas, coal, nuclear, large hydro then renewable.

644
00:58:02,000 --> 00:58:08,000
So what this does is it adjust the volumes that get used for the power content level.

645
00:58:08,000 --> 00:58:15,000
So on the on the right hand side shows the volumes that were used to drive the percentage mix that goes shows up on the power content level.

646
00:58:15,000 --> 00:58:27,000
So what you see here is this accounting in accuracy is that PG&E's procurement was 25.5% natural gas, but what shows up on the power content level is 4.8.

647
00:58:27,000 --> 00:58:34,000
So it's allowing PG&E because they've over procured and a lot of that has to do with their departing load.

648
00:58:34,000 --> 00:58:40,000
That they appear more carbon-free than they really are.

649
00:58:40,000 --> 00:58:50,000
And so that was part of the discussion back in 2020 and it was the policy board decided we want to do something more impactful and long term contracting.

650
00:58:50,000 --> 00:59:05,000
And getting to 100% is going to dry as move the needle more than then just focusing on our power content label showing a higher percentage.

651
00:59:05,000 --> 00:59:11,000
So I want to turn now to what have we been doing since we've adopted this policy.

652
00:59:11,000 --> 00:59:31,000
And I want to show you that since that time we've entered into 15 renewable contracts, about nine of them are sorry, eight of them are solar plus storage projects, two wind projects, four geothermal projects and one solar only project.

653
00:59:31,000 --> 00:59:41,000
Now this is producing over this will produce when all these projects are aligned over a thousand megawatts of new renewable power for the grid.

654
00:59:41,000 --> 00:59:52,000
And in addition to the batteries that are necessary ingredient to be able to dispatch the solar in more opportune times.

655
00:59:52,000 --> 00:59:56,000
I've left out of this chart kind of our standalone energy storage agreements.

656
00:59:56,000 --> 01:00:00,000
There's seven of those those are necessary ingredient, but we're talking about here about our.

657
01:00:00,000 --> 01:00:11,000
Our RPS goals. I want to turn to of those 15 projects. Seven of them have begun delivering for our customers.

658
01:00:11,000 --> 01:00:22,000
And really, this is a big accomplishment. I want to highlight a couple things. Victory pass, the bottom one, just came online in March and added, is serving 5% of our customers load.

659
01:00:22,000 --> 01:00:29,000
The geothermal, man with Casa Diablo, first geothermal power plant to be built within California in the last 30 years.

660
01:00:29,000 --> 01:00:41,000
We were responsible for that. And so, right now, we are serving about 33% of our load. I know I have 29% in the chart.

661
01:00:41,000 --> 01:00:50,000
What I mentioned is that starting at 2025, we are expanding to add the city of Atasca Dero and San Luis Fiscal County.

662
01:00:50,000 --> 01:01:02,000
And that's moving the needle a little bit on our load. So, it shifts it to a 29% of our load would be served once those communities are being served by us.

663
01:01:02,000 --> 01:01:12,000
But I actually want to turn now to what I would call, introduce some dunkel flauta into the conversation.

664
01:01:12,000 --> 01:01:22,000
For folks who were in attendance at our fall 2022 conference, I introduced that term. It's a German word meaning dark doldrums.

665
01:01:22,000 --> 01:01:29,000
And it's used in the German energy renewable energy industry to represent when solar and wind is not producing.

666
01:01:29,000 --> 01:01:40,000
But I want to expand that discussion. The doldrums we're in now is with the development cycle projects getting online, according to the plan.

667
01:01:40,000 --> 01:01:47,000
And of these seven projects, five of them were delayed three to eight months.

668
01:01:47,000 --> 01:01:56,000
So, that's just one example that we are in this dunkel flauta as it relates to renewable project development.

669
01:01:57,000 --> 01:02:08,000
Moving on to what are the driving issues for why development of these projects is taking longer than anyone has anticipated.

670
01:02:08,000 --> 01:02:13,000
The one that started with COVID is the supply chain issues.

671
01:02:13,000 --> 01:02:25,000
And these developers were really through a wrench in their plans back when when the supply chain of solar panels that are coming primarily from China were interrupted.

672
01:02:25,000 --> 01:02:30,000
And it introduced delays into their projects being able to come online.

673
01:02:30,000 --> 01:02:43,000
Now, the solar piece has somewhat ease, but there's there's other the associated equipment step up transformers as a new issue that's introducing problems for developers.

674
01:02:43,000 --> 01:02:59,000
What used to take a year is now taking three to four years to get those parts, which means these developers have to be very proactive at placing the orders for these necessary interconnection equipment for these solar.

675
01:02:59,000 --> 01:03:03,000
And other renewable farms.

676
01:03:03,000 --> 01:03:12,000
So the supply chain is something that one it impacted our online projects that were delayed, but it's also where we have about our under development.

677
01:03:12,000 --> 01:03:20,000
We have eight projects under development. They're all doing the best they can to try to come online to what to the date say committed to.

678
01:03:21,000 --> 01:03:30,000
Excuse me. But but but but they're still that that concern with the supply chain for some of the equipment they need to come online.

679
01:03:30,000 --> 01:03:38,000
But really the more the more prominent problem, this dunkelflower issue in my mind is the interconnection process.

680
01:03:38,000 --> 01:03:59,000
This process has become very dysfunctional in my opinion. It's it's a very challenging up effort for a developer who has to submit an interconnection application with with with the entities responsible for for these power plants to come online.

681
01:03:59,000 --> 01:04:08,000
And what used to take pretty routinely two to three years to submit an interconnection request and beyond line is now taking five to eight years.

682
01:04:08,000 --> 01:04:14,000
And so this this is this is the one that keeps me up at night worrying because I see this problem.

683
01:04:14,000 --> 01:04:20,000
I think all the regulators see the problem even the federal government is putting out.

684
01:04:20,000 --> 01:04:34,000
Memos to say you got to fix this because it's not just occurring within California it's all across the North America with with slow interconnection times.

685
01:04:34,000 --> 01:04:42,000
And so this is this is these are these are issues that persist for our under development under development projects.

686
01:04:42,000 --> 01:04:52,000
But turning to kind of our getting to the bottom line how are we how's our what's our progress looking like for getting to our goal.

687
01:04:52,000 --> 01:05:03,000
And I mean I got two charts here about really the let's focus on the one on the left because that shows our position with regard to getting that 100% goal.

688
01:05:03,000 --> 01:05:11,000
Before we move the goal post and adds a task of their own slow right let's talk about the the chart on the left for the moment.

689
01:05:11,000 --> 01:05:26,000
If you look at the green line that's really showing our under contract projects and what percentage of our anticipated load it would serve and by 2030 we would have been at 74% with our existing projects.

690
01:05:27,000 --> 01:05:36,000
I mean moving over to the shift to goal post of a taskator and slow at 64% for those same batch of projects.

691
01:05:36,000 --> 01:05:44,000
And we plan the dotted line is showing that we plan to go out and contract for more to get to that 100% goal we still have time to do that.

692
01:05:44,000 --> 01:05:55,000
I want to show that that red line because what is that showing we these are experienced delays for our online projects and even projects under development that have had asked for more time.

693
01:05:55,000 --> 01:06:07,000
And you can see a huge drop right I mean in 2023 2024 we're talking in the 30% reduction in how much renewable energy we expected but didn't get.

694
01:06:07,000 --> 01:06:27,000
And so this is really interfered with our abilities to get gets closer to that goal quicker and it also is also affected our compliance obligation sometimes we have to we have to take action to make sure we're going to be compliant with some of the regulatory obligations we have.

695
01:06:27,000 --> 01:06:40,000
So so this is you know I want to kind of move out of the dark doldrums here a little bit and just tell you that we are cautiously optimistic that we can still get to our goal.

696
01:06:40,000 --> 01:06:59,000
We've we've just issued an RFO got we got over 100 offers on May 22nd and we're currently sifting through them analyzing them and we're hopeful that we can find projects that one can help us get to our goal and come online in time to do so.

697
01:06:59,000 --> 01:07:13,000
And and we'll continue to to strive towards that goal and and hope that that the for in my mind the interconnection process needs reform to be streamlined and get back to that two to three years cycle.

698
01:07:13,000 --> 01:07:20,000
So that we can get there and that concludes my presentation happy to take any questions may have.

699
01:07:21,000 --> 01:07:31,000
If I can just add to quick points maybe three two points in a story I promise to be brief one is the plan moving forward.

700
01:07:32,000 --> 01:07:53,000
8 to 12 percent of load a year as we move forward we'll still get us to that 2030 so as Dennis mentioned cautiously optimistic and as we're evaluating projects that interconnection queue position it really means they need to restart a few years ago so developers if you're listening and you're thinking that you're walking in today.

701
01:07:53,000 --> 01:08:04,000
You know your project may be there but we may be thinking further along than this the other piece is you know I think it's important to keep in mind.

702
01:08:04,000 --> 01:08:09,000
What energy procurement means for customers and costs so.

703
01:08:10,000 --> 01:08:17,000
You know Mr. Osmers not here but I always want to make the point that he makes so well which is.

704
01:08:17,000 --> 01:08:36,000
Our climate goals are tied to the cost of energy and if we cannot electrify right the goal is you decarbonize the grid you use that decarbonize electricity to go after the low hanging fruit of electrify everything and then you focus on the industrial pieces that are difficult to electrify.

705
01:08:37,000 --> 01:08:58,000
And without the low cost our climate goals are going to be further away so as we move forward at a very high cost in the energy market highest market that we've seen in some 20 to 25 years it's important that we keep in mind what our ultimate goals are which is to.

706
01:08:58,000 --> 01:09:12,000
Move away from fossil fuels entirely you know so I just I add that caution that it's not just a number that we have for 2030 and our goal of 100% we do want to get there.

707
01:09:12,000 --> 01:09:19,000
But as we move forward we're very mindful of where the market is where the value in the market is and you know whether.

708
01:09:19,000 --> 01:09:29,000
It makes sense today to go after 8% or maybe is 4% and then we plan for a larger portion in future years when we see where the market is going.

709
01:09:29,000 --> 01:09:36,000
It's just important to keep that in mind as part of our planning not just you know the dotted line on the chart.

710
01:09:36,000 --> 01:09:42,000
The other point that I wanted to raise is is a bit of a story and I apologize for this which is.

711
01:09:42,000 --> 01:09:57,000
I had an opportunity recently to meet with an interconnection consultant and he's been in the industry since the early 2000s and this is his job is to look for capacity and citing and to help developers site projects so that they can get done.

712
01:09:57,000 --> 01:10:15,000
What he shared with me was I started this in this industry and I didn't know anything it was the best job in the world because they would come to me and they say where can I site a project it was 2006 in renewable energy was important the answer was anywhere you darn well please.

713
01:10:15,000 --> 01:10:25,000
Because there's capacity out there this political appetite that build these projects you know the commission of set procurement targets and the answer was easy anywhere you want.

714
01:10:25,000 --> 01:10:33,000
He says now I'm at the tail end of my career and you know I look at it and I think this is the easiest job in the world.

715
01:10:33,000 --> 01:10:43,000
Because 20 years ago the answer was cited anywhere you want and the answer today is you can't site it anywhere there is no capacity so he says might the book ends in my career is.

716
01:10:43,000 --> 01:10:52,000
I basically sit in my computer and collect my check that I don't have to do anything because the answer is the same as it was to our 20 years ago just for different reasons.

717
01:10:52,000 --> 01:10:58,000
Anyway just a little bit of color to the point that Dennis is making.

718
01:10:58,000 --> 01:11:00,000
Councilmember Sedan.

719
01:11:00,000 --> 01:11:10,000
As Dennis thanks for the presentation I guess I'm sort of warning where the guard rails are contractually because only seven out of the 15 projects were delivered.

720
01:11:10,000 --> 01:11:20,000
What was the expectation with regard to the other eight when were they going to come online and then of course I hear about the introduction introduction issues and that.

721
01:11:20,000 --> 01:11:38,000
Siting and all that that's a big problem and I know there's a lot of we just had a meeting with carb and CEC and CPU you see they're talking about you know permit streamlining and all that stuff but I guess if you're writing if you have a contract they should have a delivery date.

722
01:11:39,000 --> 01:11:56,000
And they shouldn't be able to say well we don't we can't meet the process is I guess what's the given take their relative to fulfilling the contracts and over those eight that are not online when are they anticipated to be online.

723
01:11:56,000 --> 01:12:03,000
Well just in terms of the contracts in general we tend to build in a some cushion with allowed.

724
01:12:03,000 --> 01:12:25,000
Extensions to the time anywhere from three to six months in it it has to have to be very specific reasons to to allow that you know force measure is one example of something beyond the developers control but we have other things related to interconnection being one of them which we talk about that's often something they don't have control over.

725
01:12:26,000 --> 01:12:38,000
Usually though if they run up against those allowed extensions in the contract then it brings about a much more serious discussion on whether or not we're going to take action and maybe.

726
01:12:38,000 --> 01:12:54,000
We have to usually have to men the contract which we've done with several of our projects the ones that are still under development they have they have very they have different stages a lot of them are going to be in the 25 to 27 timeframe.

727
01:12:54,000 --> 01:13:05,000
Currently and and so those will be that's when they're they're currently planned to come online.

728
01:13:06,000 --> 01:13:08,000
Councilmember Bowman.

729
01:13:08,000 --> 01:13:18,000
Thank you Dennis what impact will the new tariffs on solar from the Biden administration have is if you can highlight that.

730
01:13:18,000 --> 01:13:27,000
Yeah actually I had a note to comment on that but I didn't want to go too dark don't go flout but yeah that one is sort of looming right is that.

731
01:13:27,000 --> 01:13:44,000
That the re-imposition of the solar terraces is also going to return the developers challenges on on getting those product those solar panels shipped over and whatever timeline they had expected because what it did last time was.

732
01:13:44,000 --> 01:13:50,000
The shipers just left them in the ports they didn't want to send them over to the US until it got resolved.

733
01:13:50,000 --> 01:14:00,000
And so they just sat there on ships and and that's likely to happen again with the I don't I don't think it's fully imposed yet right it's just being talked about.

734
01:14:00,000 --> 01:14:15,000
And then if I may and in terms of you know projection of total energy consumption due to AI and crypto currency and so forth once you find yourself regardless of how many projects you have online.

735
01:14:15,000 --> 01:14:24,000
It'll still be a smaller and smaller percent of the total load not not that you can do anything about it but it's just something to think about in terms of the long term goals.

736
01:14:24,000 --> 01:14:37,000
I think right you're just commenting on what is our expected low growth and we do try to we do try to follow what the state the state does look at what is the year over your low growth due to AI EV.

737
01:14:37,000 --> 01:14:52,000
EV adoption rates right and I think there's been recently there's been criticism of the CEC of not doing a good job on that we tend to defer to them but we also look at other sources and and try to adopt.

738
01:14:52,000 --> 01:14:59,000
I think the low growth that we believe to be the most reasonable in terms of for planning purposes.

739
01:14:59,000 --> 01:15:00,000
I just want to.

740
01:15:00,000 --> 01:15:06,000
To both questions first about tariffs, there is a little bit of window before those are in effect.

741
01:15:06,000 --> 01:15:12,000
And I would strongly encourage that developers that want to do business need to be securing their supply chain now.

742
01:15:12,000 --> 01:15:28,000
And I think we've seen a lot of developers going to do that. And this is a carrot and stick operation from the Biden administration, encouraging US soil manufacturing of PV and battery components.

743
01:15:28,000 --> 01:15:38,000
And also saying we're going to have tariffs for imported. So we are seeing more manufacturing moved to the United States and developers should be moving to secure that.

744
01:15:38,000 --> 01:15:48,000
The other piece that may we may see change is the design of the battery modules because of the way the tariffs are currently proposed.

745
01:15:48,000 --> 01:15:55,000
Moving the high cost components outside of the battery containment unit.

746
01:15:55,000 --> 01:16:05,000
As with respect to the AI, Dennis exactly right, we are constantly looking and forecasting our potential load growth.

747
01:16:05,000 --> 01:16:15,000
AI is an interesting northern Virginia is the primary location. The other locations that you're seeing AI data centers being cited.

748
01:16:15,000 --> 01:16:19,000
The Pacific Northwest where there's significant water.

749
01:16:19,000 --> 01:16:29,000
And then also in areas where there is very cheap land, there is own a desert, which also has a nuclear power facility nearby.

750
01:16:29,000 --> 01:16:40,000
They have gone to the point that the demand is so significant, the load that they would be adding to the grid that they're really looking at stable supply of energy.

751
01:16:40,000 --> 01:16:54,000
So renewables scare them a little bit. They are looking at how can I co-locate next to constant base load resources and then cost of the land is really significant.

752
01:16:55,000 --> 01:17:14,000
If I could add to that there's current legislation proposed right now that would allow server farms and data mining operations as well as AI to actually use diesel fired generators and be able to skip air district permitting requirements.

753
01:17:14,000 --> 01:17:34,000
Of course my association is opposed to that because of the environmental and health cost, but that's the thinking right now is the state on one hand is saying we need all renewables and the other hand is saying let's build as many diesel fired generators as we can to support these projects.

754
01:17:34,000 --> 01:17:43,000
There's not really a unification or any direction north arrow that's being followed that I can see right now.

755
01:17:43,000 --> 01:17:58,000
So we'll have to wait and see how that pencils out, but these generator farms have the ability to actually have an area go into a non-attainment with federal and state air quality standards there that massive.

756
01:17:58,000 --> 01:18:21,000
So we're very concerned about what may be happening and then there's also the diesel emergency response during heat crisis and so forth that's something that's been shelved right now at car but it's going to find this way back very shortly so I'll let you know when that happens you're definitely going to want to participate in that.

757
01:18:29,000 --> 01:18:30,000
Council Member Byron.

758
01:18:30,000 --> 01:18:32,000
Thank you Mr. Chair.

759
01:18:32,000 --> 01:18:43,000
I think this is a really significant issue and I thank you for highlighting this obviously there's a lot of reasons around these delays and you've and you've touched on all of them.

760
01:18:43,000 --> 01:18:49,000
I would think for the most part everybody in the procurement business is in the same boat.

761
01:18:49,000 --> 01:19:00,000
Right I mean it's not as though we're not going out and asking for something that no one else is it and you want to increase everybody else wants to increase we got some strong goals in the state.

762
01:19:00,000 --> 01:19:09,000
CCA's are driving it well well beyond to my understanding well beyond with the but the PUC's requiring the IOUs to do.

763
01:19:09,000 --> 01:19:18,000
But having worked in this industry for a long time and I haven't been in the procurement process for at least ten years and some of these issues are not new.

764
01:19:18,000 --> 01:19:25,000
Okay the interconnection issues with with the IOUs I know you say the ISO but.

765
01:19:25,000 --> 01:19:32,000
The IOUs own these lines right and and I doubt the POUs are having problems.

766
01:19:32,000 --> 01:19:39,000
Building and procurement what they want to the publicly on utilities are having the municipal's are having any trouble.

767
01:19:39,000 --> 01:19:47,000
So the gating issue still is the IOUs and the incentives that they have are contradictory to what.

768
01:19:47,000 --> 01:19:49,000
We're trying to do here.

769
01:19:49,000 --> 01:20:06,000
For 25 years the IOUs in the state have resisted renewables kicking in screaming from the first legislation that was passed you know the sheer legislation back in about 2000 to set an RPS a renewable portfolio standard.

770
01:20:06,000 --> 01:20:09,000
They're still kicking in screaming except.

771
01:20:09,000 --> 01:20:17,000
You know now they can put this in the rate base well they always could and that's how they make money and and.

772
01:20:17,000 --> 01:20:27,000
So I'm still concerned Mr. Dyson ill that what we've got the gating issue here is the IOUs and I know we're all working together and.

773
01:20:27,000 --> 01:20:34,000
Mr. Shaw's reluctant to say anything negative about are being good team members with our investor on utilities.

774
01:20:34,000 --> 01:20:40,000
But I'd like to ask if you could be pretty candid with this house how concerned do you.

775
01:20:40,000 --> 01:20:41,000
I mean.

776
01:20:41,000 --> 01:20:46,000
I don't know exactly how to ask the question except that's my primary concern.

777
01:20:46,000 --> 01:20:50,000
This is not new we've seen this before.

778
01:20:50,000 --> 01:20:58,000
I appreciate the question. Council member Byron I don't know if I agree that the IOUs are the.

779
01:20:58,000 --> 01:21:07,000
The cause I mean they do contribute to the delays because they don't adequately resource the work crews to do the interconnection work.

780
01:21:07,000 --> 01:21:15,000
It's not just the work is the reviews I mean I know the insameteo county there's one person that does the distribution interconnection work for PG&E.

781
01:21:15,000 --> 01:21:28,000
But but I do think and and even the federal energy regulatory commission has identified that the way that the KISO runs its interconnection queueing program is is has problems where.

782
01:21:28,000 --> 01:21:43,000
People interconnect and get in the queue and they sit there and they never move forward on developing their projects and now because they've closed the door on new interconnection request you see gaming behavior by the developers on trading out these.

783
01:21:43,000 --> 01:21:49,000
These positions and so to me the major reform has to happen with the KISO.

784
01:21:49,000 --> 01:21:58,000
To to give more transparency and clarity and certainty to the development community on how long it's going to take.

785
01:21:58,000 --> 01:22:04,000
And and and what they need to do to get their their projects online and delivering.

786
01:22:05,000 --> 01:22:16,000
The IOUs look I I acknowledge that we've had some some information provided to us by developers that there's there's there they're introducing delays but it's really.

787
01:22:16,000 --> 01:22:21,000
Under resourcing by the IOUs of the necessary interconnection work.

788
01:22:21,000 --> 01:22:33,000
We still have a hybrid market as far as I understand you're not you do not participate in the procurement review groups at the investor on utilities those are all still closed not NDA confidential.

789
01:22:33,000 --> 01:22:43,000
Processes they're out there procurement power and nobody knows because of their monopsomy power they nobody sees that information that they can disclose.

790
01:22:43,000 --> 01:22:51,000
In fact they make everybody that submits a proposal sign an NDA saying they will not discuss whether or not they're on the short list, etc.

791
01:22:51,000 --> 01:22:57,000
But I think it's worth watching how the IOUs are doing in their procurement process.

792
01:22:57,000 --> 01:23:12,000
Right and I don't have any sense of that because I haven't been following that for a while but I am still dubious that that's where it is and of course the conclusion from all of this is we have to face facts we're not going to hit our renewable goals.

793
01:23:12,000 --> 01:23:22,000
The way we've projected them to be I know you want to be optimistic but it looks to me like we're lagging at least five years behind.

794
01:23:22,000 --> 01:23:31,000
Let me jump in on two things first the PG&E has asked for an extension around their midterm reliability procurement mandate.

795
01:23:31,000 --> 01:23:42,000
Meaning that they weren't able to meet the deadlines set by the CPUC so the IOUs are seeing the same interconnection delays and challenges that we are seeing.

796
01:23:42,000 --> 01:23:53,000
I think that there are really three major issues so from a policy standpoint and how we're trying to engage in the regulatory space.

797
01:23:53,000 --> 01:23:59,000
The first Dennis mentioned which is appropriately resourcing.

798
01:23:59,000 --> 01:24:11,000
So the commission asked a few years ago tell us do you need more rate based work to be able to complete interconnections on time.

799
01:24:11,000 --> 01:24:21,000
Southern California Edison I believe their response was we do if you want to meet these goals this is what what it would cost and PG&E's response was.

800
01:24:21,000 --> 01:24:32,000
We're fine we we have gotten that and that's I can't give you an advice letter number but but it is their official response to the commission's request.

801
01:24:32,000 --> 01:24:41,000
And I think that's you follow the money where where is the focus and it's not currently in the interconnection space.

802
01:24:41,000 --> 01:24:48,000
The second area Dennis also mentioned which is the speculative nature the interconnection.

803
01:24:48,000 --> 01:25:01,000
A lot of focus has been about how to evaluate projects coming into the interconnection space but it's doing nothing to weed out the zombie projects that are currently eating up the interconnection space.

804
01:25:01,000 --> 01:25:09,000
And there's a new market that is happening which is the speculative market of your interconnection position.

805
01:25:09,000 --> 01:25:19,000
That is out there and it's happening and that's not helping get projects delivered any faster at a cheaper rate because it's a cost component.

806
01:25:19,000 --> 01:25:33,000
And then the third area I think is around tariff design and this isn't so much about renewable and generation pieces but evaluating standalone energy storage assets and how they interconnect.

807
01:25:33,000 --> 01:25:43,000
We have seen that you know we have to plan or the kysotaires require PG&E and the IOU's plan to a worst case scenario.

808
01:25:43,000 --> 01:26:01,000
So they are treating batteries as demand on the system even if we are willing to acknowledge or sign a covenant that would restrict our ability to charge the batteries so that we would only ever discharge in the net peak hours and never charge it.

809
01:26:01,000 --> 01:26:09,000
They still have to plan as though we may act in that sort of non-responsible and non-economic manner.

810
01:26:09,000 --> 01:26:24,000
And that needs to be evolved because battery storage the number of projects they're waiting to be interconnected is just growing 100 fold over and over again across the kysotan interconnection cues.

811
01:26:24,000 --> 01:26:32,000
So I would say those three areas are areas that there are solutions in the interconnection space but they're difficult to do.

812
01:26:32,000 --> 01:26:38,000
Thank you both.

813
01:26:38,000 --> 01:26:46,000
I don't see any more council member comments I have a couple of questions.

814
01:26:46,000 --> 01:26:53,000
The rates that we're looking at in the current proposals that you're evaluating now for what our costs will be.

815
01:26:53,000 --> 01:26:58,000
How does that fit in with our rates for our customers?

816
01:26:58,000 --> 01:27:01,000
Is it going to have a big effect or is it still?

817
01:27:01,000 --> 01:27:04,000
I know we have a lot of other costs besides just the power cost.

818
01:27:04,000 --> 01:27:09,000
Is it going to have a significant pressure on pushing our rates up?

819
01:27:09,000 --> 01:27:15,000
Power costs are about 92 to 94% of our total budget.

820
01:27:15,000 --> 01:27:22,000
So it's a significant cost but as we move forward the PPAs are still generally a planned cost.

821
01:27:22,000 --> 01:27:31,000
So when we're procuring energy we're not necessarily operating to beat the market over a 20 or 25 year PPA.

822
01:27:31,000 --> 01:27:35,000
We're looking to stabilize and be able to plan around those costs.

823
01:27:35,000 --> 01:27:42,000
But when you're taking such a long-term view it is important to step back and say where are we in the market today.

824
01:27:42,000 --> 01:27:46,000
In 2028 we saw significantly different prices.

825
01:27:46,000 --> 01:27:52,000
Some more than 100% lower than we are today.

826
01:27:52,000 --> 01:28:01,000
So this is a significant change and we need to be able to step back and be purposeful in how we're considering projects.

827
01:28:01,000 --> 01:28:07,000
So I'm sorry I didn't quite get the sort of bottom line if in terms of our current rates today.

828
01:28:07,000 --> 01:28:16,000
If it's likely to put upward pressure on those if we were to sign contracts at the rate you're getting proposals right now.

829
01:28:16,000 --> 01:28:19,000
I think it's one consideration right that we look at that.

830
01:28:19,000 --> 01:28:24,000
We also have regulatory obligations that we also have to meet.

831
01:28:24,000 --> 01:28:33,000
So we're looking at the whole schedule of things affordability costs impact on rates but also compliance meeting our compliance.

832
01:28:33,000 --> 01:28:36,000
There's the midterm reliability obligation.

833
01:28:36,000 --> 01:28:41,000
There's our obligations and of course achieving our goal here.

834
01:28:41,000 --> 01:28:48,000
But I think that the cost consideration is an important one and it's part of our decision.

835
01:28:48,000 --> 01:28:55,000
It's difficult chair to give you a bottom line of signing a cost equals a percentage increase in rates.

836
01:28:55,000 --> 01:29:06,000
It is an important component but we analyze every one of these projects from the criteria established by the policy board.

837
01:29:06,000 --> 01:29:12,000
That criteria means that we're going to look at the load serving energy and responsibilities.

838
01:29:12,000 --> 01:29:15,000
But we're also going to look at the value of the project in the market.

839
01:29:15,000 --> 01:29:21,000
There's a price that we pay, a fixed price that we pay but how can we utilize that asset in the energy markets.

840
01:29:21,000 --> 01:29:32,000
So it's value today may change as we move forward over the value of the duration of the contract based on the energy market where the energy market sits.

841
01:29:32,000 --> 01:29:41,000
So I would say as a roll of thumb it's not a good idea to sign a bunch of contracts at the highest point in the 25 year period.

842
01:29:41,000 --> 01:29:54,000
But the value of those products over that duration of that PPA is going to depend very heavily on how you operate it and the conditions of the market and which you're operating it in.

843
01:29:54,000 --> 01:29:57,000
No crystal balls involved.

844
01:29:57,000 --> 01:30:00,000
Really big data analytic tools.

845
01:30:00,000 --> 01:30:09,000
The other thing I wanted to ask is there's been a lot in the press lately about federal regulatory action on trying to make it easier to put power lines in.

846
01:30:09,000 --> 01:30:27,000
And when you talk about the low-hanging fruit, that transmission capacity is getting to be a bigger, bigger factor in terms of, I mean, you have the interconnection issues with the delays with the utilities doing the engineering and whatever they have to do on there.

847
01:30:27,000 --> 01:30:30,000
But also just the capacity issues in the grid.

848
01:30:30,000 --> 01:30:41,000
And do you see any, are we getting to the point now where a lot of these projects are being built in the central valley and then sending energy to the coast?

849
01:30:41,000 --> 01:30:51,000
Are we starting to see transmission bottlenecks that are going to be a factor in where projects are located?

850
01:30:51,000 --> 01:30:56,000
Especially if it's taking eight to ten years to build a new transmission line.

851
01:30:56,000 --> 01:31:00,000
I think it takes much longer to build a new transmission line.

852
01:31:00,000 --> 01:31:06,000
I think that the challenge is more as generation moves further away from loads.

853
01:31:06,000 --> 01:31:17,000
So when you get into isolated areas like the Owens Valley, Nevada, parts of New Mexico, that transmission capacity and bringing it into kiso.

854
01:31:17,000 --> 01:31:24,000
That's where the real investment needs to occur because, again, that's where projects, that's where the wind is.

855
01:31:24,000 --> 01:31:30,000
So that's where that will go. That's where some of the low cost energy or low cost of land is for sighting solar.

856
01:31:30,000 --> 01:31:36,000
And then that's where some of the geothermal is. And so with renewables, you've got to go to where that resource is.

857
01:31:36,000 --> 01:31:43,000
So as you get further away from load, you've got to have the transmission capacity that may be new lines.

858
01:31:43,000 --> 01:31:49,000
It may be reengineering and Dennis can help me on the term.

859
01:31:49,000 --> 01:31:55,000
But changing the capacity carrying capabilities of existing lines.

860
01:31:55,000 --> 01:31:58,000
Okay, thank you.

861
01:31:58,000 --> 01:32:06,000
Not seeing any other hands from the council, I wonder if we have any public comment on this item.

862
01:32:06,000 --> 01:32:13,000
Yes, we do have public comment, but Garrett, we're ready for you.

863
01:32:13,000 --> 01:32:21,000
Hi, yeah, this is Brett Garrett and Santa Cruz and as we're moving to the 100% clean and renewable goal.

864
01:32:21,000 --> 01:32:30,000
I just want to strongly urge a strong emphasis on low-core renewable generation within 3 CE territory, even if it costs more.

865
01:32:30,000 --> 01:32:38,000
As I was just hearing some of you talk about how, you know, in order to use these renewables, we need to build transmission.

866
01:32:38,000 --> 01:32:44,000
But if we could build the renewables here in our region, then that additional transmission wouldn't be needed.

867
01:32:44,000 --> 01:32:48,000
It would just, the whole thing would work so much smoother.

868
01:32:48,000 --> 01:32:51,000
Lock over renewables, reduce the need for transmission infrastructure.

869
01:32:51,000 --> 01:33:04,000
We currently have kind of an insane billing structure in California, at least in the IOU territory, which means I need to pay the same transmission chart regardless of where the energy was generated.

870
01:33:04,000 --> 01:33:13,000
But I am very hopeful that someday we will have a more reasonable system with minimal transmission charges for low-core energy.

871
01:33:13,000 --> 01:33:28,000
The clean coalition, for example, has a detailed proposal, including draft legislation to reform the transmission access charges, so that they would actually be based on how nearby the energy is included.

872
01:33:28,000 --> 01:33:37,000
But even our current environment, it's a really good idea to reduce the need for transmission infrastructure by building our resources locally.

873
01:33:37,000 --> 01:33:46,000
Local generation can also create local jobs, so please give a preference to some local projects.

874
01:33:46,000 --> 01:33:48,000
Thank you.

875
01:33:48,000 --> 01:33:51,000
Thank you.

876
01:33:51,000 --> 01:33:53,000
Do we have any other public comment?

877
01:33:53,000 --> 01:33:56,000
That was a final public comment, Chair.

878
01:33:56,000 --> 01:33:59,000
Okay. Thank you.

879
01:33:59,000 --> 01:34:02,000
Does that conclude your CEO's report?

880
01:34:02,000 --> 01:34:04,000
It does, Chair. Thank you.

881
01:34:04,000 --> 01:34:08,000
All right. Thank you.

882
01:34:08,000 --> 01:34:21,000
So the next item on our agenda is a request that we support policy boards consideration of the behind-the-meter battery rebate program.

883
01:34:21,000 --> 01:34:36,000
Again, yes, this item is asking the CAC to support policy board consideration of our proposed behind-the-meter battery rebate program.

884
01:34:36,000 --> 01:34:47,000
And again, I will invite our Director of Energy Programs, Chris Cook, to present this item.

885
01:34:48,000 --> 01:34:50,000
Thank you.

886
01:34:50,000 --> 01:34:57,000
So as mentioned, this will be a presentation on three Cs for a pose behind-the-meter residential battery rebate program.

887
01:34:57,000 --> 01:35:07,000
So I spoke to this a little bit in the demand response work plan, but this presentation goes into some more detail on that.

888
01:35:07,000 --> 01:35:16,000
So first of all, as mentioned previously with the battery rebate program, this would allow for load shifting to occur.

889
01:35:16,000 --> 01:35:26,000
So essentially enabling the electricity consumption to shift off of those peak demand hours.

890
01:35:26,000 --> 01:35:39,000
And in turn, allowing for the benefits that was previously discussed of using cleaner renewable power, reduced overall costs of customers and purchase of the power,

891
01:35:39,000 --> 01:35:48,000
and then increased resiliency for the grid, and I would add increased reliability for customers.

892
01:35:48,000 --> 01:35:53,000
So then getting into more of the details of the battery rebate program.

893
01:35:53,000 --> 01:35:58,000
You can see on the chart on the right, there's two different rebate mounts.

894
01:35:58,000 --> 01:36:03,000
So the first one would be for our three CE choice and prime customers.

895
01:36:03,000 --> 01:36:13,000
These are customers who either non-solar or they're getting solar at the time of the battery install.

896
01:36:13,000 --> 01:36:19,000
And they would have a rebate amount of $300 per kilowatt hour.

897
01:36:19,000 --> 01:36:24,000
So an average residential battery might be about 13 kilowatt hours.

898
01:36:24,000 --> 01:36:33,000
So that would equate to approximately $3,900 rebate or about 20 to 30% of a battery install cost.

899
01:36:33,000 --> 01:36:48,000
So in looking at, then looking at for customers that may be already had solar, they could be a NEM 1.0 2.0 customer and the requirement that they

900
01:36:48,000 --> 01:36:56,000
become they go on to NBT or also for care, fairer, and medical baseline customers.

901
01:36:56,000 --> 01:37:07,000
They would have a $500 per kilowatt hour rebate, which, again, for a 13 kilowatt hour battery, would be approximately $6,500.

902
01:37:07,000 --> 01:37:13,000
And I would note that for these income qualifying customers, there's other rebates too.

903
01:37:13,000 --> 01:37:24,000
With other agencies or IOS where you can stack those and they might be able to get up to 100% of the cost of the battery through the various programs.

904
01:37:24,000 --> 01:37:34,000
So with these rebates and the new program we're anticipating approximately 400 battery install per year,

905
01:37:34,000 --> 01:37:40,000
which would equate to a budget of approximately $2 million per year for the incentives.

906
01:37:40,000 --> 01:37:50,000
And for eligibility, we would be looking for this fiscal year, any batteries that were installed after January 1, 2024.

907
01:37:50,000 --> 01:37:55,000
As part of that rebate, we would be requiring several items.

908
01:37:55,000 --> 01:38:06,000
First of all, they would be required to discharge at least 50% of their capacity during the peak hours of 4 PM to 9 PM.

909
01:38:06,000 --> 01:38:10,000
And we'd be able to do tracking to be able to verify that.

910
01:38:10,000 --> 01:38:14,000
Also they would need to be enrolled in the net billing tariff rates.

911
01:38:14,000 --> 01:38:21,000
So if they're currently a NEM 1.0 or 2.0 they would have to switch over the net billing tariff rates.

912
01:38:21,000 --> 01:38:29,000
And additionally as previously discussed, they would need to be registered and signed up for a battery performance tracking methods,

913
01:38:29,000 --> 01:38:33,000
with some things that we could track their load shifting,

914
01:38:33,000 --> 01:38:40,000
show that they're registered in that tracking method that we would have prior to receiving the rebate.

915
01:38:40,000 --> 01:38:46,000
And then focusing in more on the income qualified customers,

916
01:38:46,000 --> 01:38:54,000
this is one where we took a look at it and really wanted to set a goal of participation for our care and phara customers.

917
01:38:54,000 --> 01:38:58,000
And our initial goal would be 15%.

918
01:38:58,000 --> 01:39:03,000
So this is based on for 3C's current NEM customers,

919
01:39:03,000 --> 01:39:06,000
13% of them qualify for care phara.

920
01:39:06,000 --> 01:39:12,000
So we're using that 13% going slightly higher to the 15 as an initial goal.

921
01:39:12,000 --> 01:39:16,000
That would equate to 60 rebates per fiscal year,

922
01:39:16,000 --> 01:39:25,000
approximately 300,000 annual expenditures or incentive rebates and 780 kilowatt hours of new energy storage,

923
01:39:25,000 --> 01:39:29,000
assuming 13 kilowatt hour of battery.

924
01:39:29,000 --> 01:39:35,000
And to achieve this we would have with our CNO team would do a targeted multi-lingual outreach.

925
01:39:35,000 --> 01:39:41,000
So this includes webinars, flyers, emails, social media.

926
01:39:41,000 --> 01:39:47,000
They've done similar outreach targeted efforts with our electrify year ride program.

927
01:39:47,000 --> 01:39:59,000
And we've seen really strong success with that in terms of participation for customers who could qualify for certain income programs.

928
01:39:59,000 --> 01:40:06,000
And so with that we'd be looking to meet or exceed the 15% participation.

929
01:40:06,000 --> 01:40:12,000
And then after the first six months or 500,000 rebates,

930
01:40:12,000 --> 01:40:20,000
we would go back and we'd evaluate how the percentage of participation within come qualified customers

931
01:40:20,000 --> 01:40:27,000
and if anything needs to be done to be able to reach more customers or meet that goal.

932
01:40:28,000 --> 01:40:39,000
And as mentioned previously, during that six months we'll also look at the overall program, the load shifting and other impacts that occurred.

933
01:40:39,000 --> 01:40:43,000
And to be able to do that overall review we'd have program tracking.

934
01:40:43,000 --> 01:40:51,000
So this is where a 3C staff or evaluating how to track battery performance we talked about this a little bit previously.

935
01:40:51,000 --> 01:40:55,000
We're looking at ensuring that as part of their enrollment process,

936
01:40:55,000 --> 01:41:04,000
the customer would register for a tracking method where you could see the discharge and charge of the batteries with the load shifting verification.

937
01:41:04,000 --> 01:41:15,000
And that would correlate to the performance tracking that performance on both an individual customer basis being able to look at that and then aggregating those in different methods to be able to say,

938
01:41:15,000 --> 01:41:27,000
OK, the overall program after six months has achieved this much shift in load and then being able to see which customers are compliant.

939
01:41:27,000 --> 01:41:36,000
So then for this new program, we have this project delivery schedule that our energy programs team has been working on.

940
01:41:36,000 --> 01:41:58,000
There's been there was work on design of the of the program application wording and now it's really focused on being able to make sure it integrates with our customer relationship management software and also CNOs outreach efforts.

941
01:41:58,000 --> 01:42:05,000
And overall we'd be looking at a late June early July start of this program.

942
01:42:05,000 --> 01:42:16,000
So with that, this recommends that the 3C, CAC support seeking policy board consideration and support of 3C's proposed behind the meter residential battery rebate program.

943
01:42:16,000 --> 01:42:18,000
Thank you.

944
01:42:18,000 --> 01:42:20,000
Thank you.

945
01:42:20,000 --> 01:42:22,000
Council member Sedan.

946
01:42:22,000 --> 01:42:25,000
Thank you, Chris good presentation.

947
01:42:25,000 --> 01:42:32,000
My comment is that rather than have a rebate which reaches back to before the program even started.

948
01:42:32,000 --> 01:42:43,000
Why not have an incentivized program that actually ties us people to go out and pushes them over the edge to get a battery instead of just paying for battery.

949
01:42:43,000 --> 01:42:58,000
Once they happen to hear about a rebate, this is a dilemma we've had with electric vehicles whether we're just paying for people to purchase a vehicle or lease a vehicle or we trying to drive them into the vehicle by using you know this.

950
01:42:59,000 --> 01:43:07,000
So I just think that you know paying for people that will find out about this. Oh great. I already already wanted to do this.

951
01:43:07,000 --> 01:43:16,000
This is already important to me and I did it but now I can get additional money from 3CE which could have been used to entice people to go that way.

952
01:43:16,000 --> 01:43:20,000
Yeah, that's a great point. I have a couple items on that first of all.

953
01:43:21,000 --> 01:43:45,000
I think that in terms of kind of making certain that we're part of that decision making process our team has been doing already webinars with solar installers and others to make sure that you know they're getting the message on the front end and you know the battery manufacturers can know about it and others so that you know when the customers coming looking at options they can be able to speak to that as part of it.

954
01:43:45,000 --> 01:44:01,000
And then in terms of that January 1st date others might have other responses on this but one of the things that I noticed is in my neighborhood there are two batteries that people installed and all of us as neighbors came and asked a million questions of them.

955
01:44:01,000 --> 01:44:13,000
So I think there's also something to be said for if a battery was recently installed and that person can be a steward for the program and say oh well you know if you do this you get an additional rebate and in that way.

956
01:44:14,000 --> 01:44:23,000
Further motivate people who might be interested but a good a good point in terms of trying to close stay in front of the purchase as much as possible especially moving forward.

957
01:44:25,000 --> 01:44:27,000
Councilmember Bowman.

958
01:44:27,000 --> 01:44:40,000
Thank you. So in terms of the rebate because it's based on energy use would this be a perpetual obligation of three CE to continue to pay through the life cycle of the battery.

959
01:44:40,000 --> 01:44:49,000
Yeah, so so what it is is it's actually so it is energy in terms of kilowatt hours like how much can be stored in the battery.

960
01:44:49,000 --> 01:45:00,000
But it's it's the it's not the demand side like the power side so it's just a one time upfront rebate right now and from what we've initially heard it.

961
01:45:00,000 --> 01:45:25,000
And I think if I can just add one clarification just because listeners in the public may hear it and it's an important distinction. It's not energy, it's it's capacity. So it's the size of the battery, not the individuals usage. So the incentive is based on the capacity of the battery.

962
01:45:25,000 --> 01:45:35,000
Thank you. And then for the customers that do not have solar is our way to explain to the customer what their return on investment will be.

963
01:45:35,000 --> 01:45:43,000
So in other words, if they make this purchase, you know, how long will it be before they quote unquote get their money back?

964
01:45:43,000 --> 01:45:53,000
Yeah, and that is something that we are looking at and one of the key drivers on that is the price of of electricity during peak and off peak hours.

965
01:45:53,000 --> 01:46:11,000
So it in some initial work that I was looking at, it's pretty much doubled during the peak hours versus off peak. So you can use that to be able to look at it in the life of the battery and communicate some of the incentives that way beyond just, you know, back up power that a lot of people think of.

966
01:46:11,000 --> 01:46:15,000
So absolutely.

967
01:46:16,000 --> 01:46:20,000
As I have a question here in Samaria, I just wanted to clarify.

968
01:46:20,000 --> 01:46:30,000
For existing them customers, they, everyone has to go under MBT to qualify for the re-aids. Is that correct?

969
01:46:30,000 --> 01:46:38,000
Yes, that is correct. They would have to switch over to the net billing tariff before qualifying for the rebate.

970
01:46:38,000 --> 01:46:49,000
I wouldn't think we would have to have really good documentation explaining exactly what is going to change with their existing solar when they do that.

971
01:46:49,000 --> 01:46:54,000
That is a big, big shift.

972
01:46:54,000 --> 01:46:59,000
And one that I would imagine most people would clearly understand it probably would not do.

973
01:47:00,000 --> 01:47:11,000
For the customers who are MBT already, five of the existing solar, that's a tricky equation.

974
01:47:11,000 --> 01:47:24,000
And that is something that we have looked at in terms of that's perspective too, but that's a great point and we will work on talking points on that too.

975
01:47:25,000 --> 01:47:27,000
Thank you.

976
01:47:27,000 --> 01:47:42,000
And on the theme of Dr. Balman's question, do you anticipate doing any education for prospective customers around the financial benefits of them of having battery backup?

977
01:47:42,000 --> 01:47:50,000
It's great that you're going to ask them to discharge during the peak that actually helps them a great deal in their bottom line.

978
01:47:50,000 --> 01:47:55,000
But I think a lot of people think of batteries as a resilience measure.

979
01:47:55,000 --> 01:48:03,000
I certainly did when I installed a couple of Tesla walls a few years ago, because of blackouts, where I get my power and so forth.

980
01:48:03,000 --> 01:48:10,000
But it turns out that actually using your battery in a creative way saves you a lot of money.

981
01:48:10,000 --> 01:48:16,000
And while I knew we ended that, so have you got any idea of how you would educate folks about that?

982
01:48:16,000 --> 01:48:21,000
It's important to note that these are going to be installed through solar installers.

983
01:48:21,000 --> 01:48:26,000
So the goal here is that driver behind this isn't necessarily an incentive we're offering.

984
01:48:26,000 --> 01:48:35,000
The driver is the way the net billing tariff is changing the billing mechanism and how customers extract value from that system.

985
01:48:35,000 --> 01:48:39,000
So we want to encourage battery adoption.

986
01:48:39,000 --> 01:48:42,000
The real driver is going to be the tariff structure.

987
01:48:43,000 --> 01:48:56,000
The benefit here is that it's our local solar installers that have the opportunity to go to existing customers and to new customers with an incentive.

988
01:48:56,000 --> 01:49:09,000
And anyone that's gone through this process knows that the installers will give you estimated ranges of your return on investment, how you utilize, how you size, what your history of energy usage is.

989
01:49:09,000 --> 01:49:13,000
And a summary of what demand response programs are currently available.

990
01:49:13,000 --> 01:49:18,000
So a lot of that information comes from those solar installers.

991
01:49:18,000 --> 01:49:26,000
We're working closely with them so that they're aware of the program, getting feedback from them about how that program is going to operate.

992
01:49:26,000 --> 01:49:30,000
You know, to Councilmember McClish's comment.

993
01:49:30,000 --> 01:49:38,000
I think the reality here is we want to design a program that's available to everybody, whether they have solar on the rooftop or not.

994
01:49:38,000 --> 01:49:43,000
If they want a battery only and be a grid fed battery customer, they can do that.

995
01:49:43,000 --> 01:49:51,000
I think we can all be grown up enough to realize that the solar installers are who are going to be having these customer conversations.

996
01:49:51,000 --> 01:49:54,000
And they're going to encourage customers to put solar on their roof.

997
01:49:54,000 --> 01:49:59,000
But the design of the program shouldn't presuppose that they have to do that.

998
01:49:59,000 --> 01:50:04,000
So that's the mechanism here and that return on investment, how you're going to operate.

999
01:50:04,000 --> 01:50:12,000
A lot of that education comes from the solar installers and we're going to continue that communication with them and partnership with them.

1000
01:50:12,000 --> 01:50:20,000
So that they understand how the program works and so that they're communicating directly to customers around how to utilize these assets.

1001
01:50:20,000 --> 01:50:22,000
My experience of solar installers.

1002
01:50:22,000 --> 01:50:26,000
I feel like I had a particularly good one.

1003
01:50:27,000 --> 01:50:34,000
Sort of all over the map in terms of their ability to articulate to the customer.

1004
01:50:34,000 --> 01:50:40,000
They can certainly articulate the benefits of the customer on the solar and the generation and all that kind of thing.

1005
01:50:40,000 --> 01:50:44,000
But the other the flip side of that is here's a battery.

1006
01:50:44,000 --> 01:50:51,000
And oh sure you just need to go and download the app and it'll tell you how to use it cleverly so you can save money.

1007
01:50:51,000 --> 01:50:56,000
It's pretty much what the guidance we got from our particular install for our battery.

1008
01:50:56,000 --> 01:51:08,000
So I mean I don't know if it would be useful at some point if you find that you're not getting as much of it uptake as you'd like to provide some training to the solar installers.

1009
01:51:08,000 --> 01:51:20,000
Not sure because I think just benefit of the quality of how they approach their own customers and how they educate their customers is not consistent.

1010
01:51:20,000 --> 01:51:24,000
So thanks.

1011
01:51:24,000 --> 01:51:30,000
And one question I had that I wanted to kind of circle back around on was the switch over to the net billing tariff.

1012
01:51:30,000 --> 01:51:33,000
Is there any way that that can be appealed at all?

1013
01:51:33,000 --> 01:51:35,000
Is that a CPUC regulation?

1014
01:51:35,000 --> 01:51:45,000
I'm not familiar enough with that to understand but I think in order to bring on customers that are on them one and them two is maybe the possibility that they could appeal that.

1015
01:51:45,000 --> 01:51:55,000
That change in status to net billing tariff because I think financially that's going to be a much better story to tell in terms of battery backup or battery storage.

1016
01:51:55,000 --> 01:52:06,000
So I wasn't sure if that was a CPUC guideline or regulation if you could comment on that and if there's a possibility that we could get a waiver and appeal to that switch over to NBT would I think would be huge.

1017
01:52:06,000 --> 01:52:12,000
You see allows us to add battery through the existing analysis without changing the depth estimation.

1018
01:52:13,000 --> 01:52:14,000
Yeah.

1019
01:52:14,000 --> 01:52:23,000
So the change to NBT is either you know not sure who's required that but it's if you see isn't right now.

1020
01:52:23,000 --> 01:52:24,000
So.

1021
01:52:24,000 --> 01:52:28,000
If you have a source of the system you have to change but a battery by itself.

1022
01:52:29,000 --> 01:52:44,000
I can't remember damners I want to make sure I understand your question you're asking is as the design of the program the requirement of eligibility that you move early to NBT whether that's required.

1023
01:52:44,000 --> 01:52:46,000
Okay.

1024
01:52:46,000 --> 01:52:57,000
The answer is no that's not required by the CPUC that is required as part of our proposal because the policy board direction was was really too full.

1025
01:52:57,000 --> 01:53:11,000
One we want to reduce the subsidy that's being paid to solar customers so that non solar customers aren't subsidizing free electricity to solar enabled customers.

1026
01:53:11,000 --> 01:53:23,000
And then adding an additional benefit to those customers that are already getting free electricity at the expense of non solar customers who tend to be lower income.

1027
01:53:23,000 --> 01:53:32,000
Of apartment dwelling customers so the first direction than the CP or from the policy board was reduced the subsidy.

1028
01:53:32,000 --> 01:53:45,000
The second direction was to encourage battery adoption and then the third direction was to give customer tools and ability to be able to respond in future demand response programs.

1029
01:53:45,000 --> 01:53:49,000
So this is taking those steps to be able to do so.

1030
01:53:49,000 --> 01:54:05,000
The battery incentive available to them one and two customers who are already getting subsidies that the commission is determined or out of whack with California's policies and goals would not meet that first objective of reducing the customer subsidy.

1031
01:54:05,000 --> 01:54:15,000
The early transition to NBT that is defined as I think one full billing cycle before their grandfathering period would run.

1032
01:54:15,000 --> 01:54:26,000
So a customer could move early really at any point that the IOU and their billing cycle and I'm sure that we'll be working with installers so they can explain that to customers.

1033
01:54:26,000 --> 01:54:41,000
It allows customers to move early to NBT but early is can be late when you're talking about a 20 year grandfathering period.

1034
01:54:42,000 --> 01:55:05,000
Just a quick note I believe this the batteries may be eligible for the residential clean energy IRS credit which is like 30% so if that can be included in the customer information and so forth that so between years and and that credit makes it quite a bit more affordable.

1035
01:55:05,000 --> 01:55:29,000
I had a follow a question on that is that I know when I put batteries in to get the credit it had to be powered by solar and you can't charge the battery under at least you know the regulations when I install batteries can't charge off the grid and put it back in the grid you can only charge from solar if you're going to get that tax credit has that changed under the IRA.

1036
01:55:29,000 --> 01:55:39,000
I'm not familiar with non grid charge component of the IRA that would limit the ability for that but we will look into that.

1037
01:55:39,000 --> 01:55:47,000
Okay yeah it was always tied to the solar tax credit before so it had to sort of be part of your solar system in order to qualify.

1038
01:55:48,000 --> 01:56:02,000
And I would add for low income customer qualifications there's others to like S chip and others that provide significant rebate so there's a number of programs out there.

1039
01:56:03,000 --> 01:56:04,000
Thank you chair.

1040
01:56:05,000 --> 01:56:11,000
These are all really good questions and I guess I'd like to put a bow around let me ask first I think this a yes or no.

1041
01:56:12,000 --> 01:56:19,000
Is this being presented for recommendation to to this CIC for the first and only time tonight.

1042
01:56:21,000 --> 01:56:31,000
Well I missed last meeting so yeah so so we are looking to launch this program end of June early July so we will be.

1043
01:56:33,000 --> 01:56:37,000
Looking to launch it before you know an XCAC meeting potentially.

1044
01:56:38,000 --> 01:56:47,000
However like I mentioned we're going to be going through evaluations and looking at how it's doing and I can definitely see if there's a recommendation to bring it back that.

1045
01:56:48,000 --> 01:56:51,000
So this is the first time the CAC seeing it.

1046
01:56:51,000 --> 01:56:55,000
So it's a lot of good comments here from a number of the members I think.

1047
01:56:55,000 --> 01:57:01,000
And I think I I would summarize adding on to what I've heard from others.

1048
01:57:02,000 --> 01:57:05,000
I think what's missing in this is there's no real.

1049
01:57:06,000 --> 01:57:12,000
Radi impact or cost benefit analysis there's no financials here for us to evaluate the efficacy of the program.

1050
01:57:13,000 --> 01:57:20,000
You know there's which we're kind of doing back at the envelope calculations is to what's what's the benefits of the customer.

1051
01:57:20,000 --> 01:57:31,000
You're preserving 40% of their capacity you're rebating in 20 to 30% there's a there's an additional there's additional rebates that could make it more attractive.

1052
01:57:32,000 --> 01:57:37,000
I know I'd be reluctant to give up 50% of my power except there is the.

1053
01:57:38,000 --> 01:57:47,000
I'm I'm sorry I'm I'm trying to mix it all together because I'm not seeing that and there's no analysis here that helps the customers that we're trying to incentivize.

1054
01:57:47,000 --> 01:57:53,000
Understand why they would want to participate in this program as Mr. Steadon said and move.

1055
01:57:54,000 --> 01:57:58,000
As a result of this not just because they're trying to backfill paying for their battery.

1056
01:57:59,000 --> 01:58:05,000
And the second is it's hard for me to to recommend this although I'm sure I will.

1057
01:58:06,000 --> 01:58:11,000
As to you know the efficacy what what's are we are we spent and are we spent in.

1058
01:58:11,000 --> 01:58:22,000
We spent in 3 CE money wisely here with this rebate program and I don't see any any any analysis that would indicate that so that's my my comment back on this program.

1059
01:58:23,000 --> 01:58:25,000
Yeah absolutely so.

1060
01:58:26,000 --> 01:58:34,000
So as I mentioned in terms of the overall program I would like to kind of take a step back and remind that it's also.

1061
01:58:34,000 --> 01:58:53,000
So load shifting overall that we're achieving with this so it's I mean price is a component of it because as I mentioned you know the price during peak hours is significantly different for both the customer and 3 CE so benefits everybody for somebody doing this load shifting versus off peak.

1062
01:58:54,000 --> 01:59:00,000
But then you also have that clean renewable component that we're talking about you also have.

1063
01:59:01,000 --> 01:59:19,000
The the reliability component for backup of power and you know we did do some preliminary work it's still in development so it's not something I could present here but we did look at okay the life cycle of a battery the peak versus off peak.

1064
01:59:19,000 --> 01:59:30,000
And and what that could mean for a customer given the rebate given a cost of a battery and it did look like something that would be cost effective for a customer but I think.

1065
01:59:31,000 --> 01:59:46,000
In my mind at least it's a whole package of benefits including clean renewable reducing emissions and adding reliability and reducing grid stress and the cost so I would not see it as just one item that's benefiting.

1066
01:59:46,000 --> 02:00:00,000
And and and it may not be the sole reason why somebody buys a battery but it definitely motivates them additionally to buy it would be my right and and and as you said in your earlier presentation I think I asked.

1067
02:00:00,000 --> 02:00:24,000
Do you have to put solar in to get these batteries rebate program? And I think the answer I got was no. So not necessarily all those benefits would apply in that circumstance. There's Ms. Johnson points out somebody like, and I know people have done this. They put their Tesla walls in just because they want that resiliency that backup power. And we don't necessarily want to reward those folks, because there's no real grid benefits for that.

1068
02:00:24,000 --> 02:00:36,000
So I guess I'm just not seeing that my comment is I'm not seeing the analysis that would indicate for me as a CAC member to recommend this.

1069
02:00:36,000 --> 02:00:47,000
What is it is a good bank for the buck, and I'm not seeing how the customer evaluates whether or not this is something that incentivizes them properly.

1070
02:00:47,000 --> 02:01:05,000
Let me step in. I disagree with the premise that using the battery for our backup purposes doesn't help the grid and that being grid fed for the battery doesn't have a demand response or load shifting capability.

1071
02:01:05,000 --> 02:01:16,000
So the analysis is really through the net billing tariff. That is the structure by which you're really excuse me. That's not true.

1072
02:01:16,000 --> 02:01:27,000
So the driver here is how does an economic person utilize their battery if they're going to be discharging the battery to the grid.

1073
02:01:27,000 --> 02:01:44,000
They must be on a them program. So they do not have to have solar. So they could be grid fed with the battery. If they want to be grid entitled with the battery and not have a discharging capabilities, then there's still some load shifting that they could do, but they wouldn't be eligible for our program.

1074
02:01:44,000 --> 02:02:00,000
At the end of the day, this is an investment in trying to operationalize this. That's what the texture platform is utilized for monitoring behavior and whether or not the batteries are being utilized, how we can educate and then add additional tools.

1075
02:02:00,000 --> 02:02:13,000
It's important, I think, from my perspective, that where are the CEC and the Commission going to? The CEC is going to real-time pricing. They're requiring that all load serving entities build real-time pricing.

1076
02:02:13,000 --> 02:02:24,000
And if there isn't a battery, if customers don't have tools to be able to respond to real-time pricing, charging their battery and low cost hours utilizing that energy in the high peak dollar hours,

1077
02:02:24,000 --> 02:02:33,000
then customers are going to be hurt tremendously during that time period. Because what customers won't do is follow when is the off peak hour.

1078
02:02:33,000 --> 02:02:38,000
Those of us that have an electric car or some reason to look at it, we will look at that.

1079
02:02:38,000 --> 02:02:51,000
But the net peak time period and time of use time periods changed dramatically. As you know, probably when you are on the CEC, we were telling everybody don't use electricity between the hours of noon and two.

1080
02:02:51,000 --> 02:02:57,000
That's not what we tell them now, because there is a glut of renewable energy that's available in those low cost high solar hours.

1081
02:02:57,000 --> 02:03:00,000
Actually, there's another rate structure still set up for that.

1082
02:03:00,000 --> 02:03:10,000
I don't think it is. The off peak hours are now in the middle of the day and your high cost hours are in the end of the day.

1083
02:03:10,000 --> 02:03:17,000
So those are the changes that are coming and this is an investment in preparing customers to be able to respond to those costs.

1084
02:03:17,000 --> 02:03:24,000
And the cost benefit of how we structure this is something that will continue to monitor as we move forward.

1085
02:03:24,000 --> 02:03:32,000
But it's currently within budget entirely. I think that's important to note as well that, you know, we don't need an augmentation or additional budget.

1086
02:03:32,000 --> 02:03:36,000
We have the program budget to be able to move forward with the program.

1087
02:03:36,000 --> 02:03:43,000
Well, thank you and it's a lot of esoteric discussion on my part there and I apologize, but it's just I'm not seeing the financials.

1088
02:03:43,000 --> 02:03:53,000
I'm not seeing the analysis in this two and a half pages to really provide you with I think a good recommendation.

1089
02:03:53,000 --> 02:03:55,000
Council Member Steadman.

1090
02:03:55,000 --> 02:03:56,000
Yeah.

1091
02:03:56,000 --> 02:03:59,000
This is an esoteric, so don't don't worry.

1092
02:03:59,000 --> 02:04:02,000
So what happens is this first come person.

1093
02:04:02,000 --> 02:04:13,000
Once you spend up to the a lot of budgeted amount or do you have a provision to revisit it and perhaps fund additional amounts to that program.

1094
02:04:13,000 --> 02:04:20,000
Yes, so that will be part of that first 500,000 or six months to do a reevaluation of it.

1095
02:04:20,000 --> 02:04:22,000
So we want to see what the participation is.

1096
02:04:22,000 --> 02:04:28,000
We want to evaluate from there. I mean, we have talked with people in the industry see what they're thinking.

1097
02:04:28,000 --> 02:04:39,000
There's other CCA students, we have a sense of what it would do, but yes, we're going to look back and evaluate at that point.

1098
02:04:39,000 --> 02:04:42,000
Council Member Bowman.

1099
02:04:42,000 --> 02:04:49,000
So you presented a lot of compelling arguments why this should go forward and intuitively it makes sense to me.

1100
02:04:49,000 --> 02:05:04,000
But to our Mr. Byron's comments, perhaps I could make a motion that we move this item requesting that you provide the operational boards to go to them and to the policy board more analysis.

1101
02:05:04,000 --> 02:05:15,000
And simple to understand terms for customers what the advantage to the customer will be what options they have for tax rebates both with solar and on solar.

1102
02:05:15,000 --> 02:05:20,000
And to the comment, I think came from San Luis Obispo, what will mean to solar customers.

1103
02:05:20,000 --> 02:05:25,000
And in that way, those boards can have that information before them.

1104
02:05:25,000 --> 02:05:32,000
But I think conceptually, at least for myself, I would say that this is a promising proposal.

1105
02:05:32,000 --> 02:05:38,000
And I think with those analyses, they'll have the information they need to make a good decision.

1106
02:05:38,000 --> 02:05:43,000
I'll second Dr. Mohammed's motion, thanks.

1107
02:05:43,000 --> 02:05:48,000
Could you restate your motion, please?

1108
02:05:48,000 --> 02:05:59,000
That we move this item forward requesting that the financial analysis that Mr. Byron referred to are presented to the operational board and ultimately the policy board.

1109
02:05:59,000 --> 02:06:04,000
So they have the information they need to make a good financial decision.

1110
02:06:04,000 --> 02:06:08,000
It's just one correction, the operations board has seen this already.

1111
02:06:08,000 --> 02:06:10,000
So we're just going forward to the policy board.

1112
02:06:10,000 --> 02:06:15,000
So if you would adjust your motion in that regard, so I'm at it.

1113
02:06:15,000 --> 02:06:19,000
Thank you.

1114
02:06:19,000 --> 02:06:22,000
I have a couple of questions and comments.

1115
02:06:22,000 --> 02:06:31,000
I wanted to mention that this program was recommended by our CAC through the ad hoc committee work three years ago.

1116
02:06:31,000 --> 02:06:34,000
It's one of the programs that we suggested we move forward with.

1117
02:06:34,000 --> 02:06:39,000
And in terms of one of the things you were talking about, Jeff, a 50% reserve requirement.

1118
02:06:39,000 --> 02:06:43,000
I think most people who have battery backup.

1119
02:06:43,000 --> 02:06:48,000
You can set what your reserve requirement is it's usually 50% or less anyway.

1120
02:06:48,000 --> 02:06:51,000
So I don't think that would really impact people in their use of the battery.

1121
02:06:51,000 --> 02:06:58,000
You want to be able to use that battery for backing themselves up in the evening,

1122
02:06:58,000 --> 02:07:02,000
so that they're not using expensive electricity.

1123
02:07:02,000 --> 02:07:08,000
I just wondered, it seemed to me that and maybe you've gotten input from solar installers.

1124
02:07:08,000 --> 02:07:16,000
But it seemed to me that all new solar purchasers going forward are going to want to put batteries in.

1125
02:07:16,000 --> 02:07:21,000
So you could kind of assume that, you know, assuming that our communication is good,

1126
02:07:21,000 --> 02:07:27,000
that however many solar systems get installed in our service area, all of them are going to apply for this rebate.

1127
02:07:27,000 --> 02:07:32,000
And I'm wondering if you've looked at numbers to see what that's going to do to the volume.

1128
02:07:32,000 --> 02:07:38,000
Yeah, that's a great question. So that is where we got that 400 participants annually from.

1129
02:07:38,000 --> 02:07:49,000
There is approximately 4,100 new solar installers each year in the 3C area and about, you know, 9% do battery right now.

1130
02:07:49,000 --> 02:07:55,000
So that's going to be the initial amount and then we'd see from there what the intake would be.

1131
02:07:55,000 --> 02:07:58,000
So you're basing on the 9%?

1132
02:07:58,000 --> 02:08:07,000
So we would be, so we're basing it on the 9% of battery installers right now.

1133
02:08:07,000 --> 02:08:13,000
So if, you know, if they went up significantly and amount, yeah, we would have to look at that further.

1134
02:08:13,000 --> 02:08:16,000
Yeah, assuming that everybody did the rebate too, that was there.

1135
02:08:16,000 --> 02:08:17,000
Yeah.

1136
02:08:17,000 --> 02:08:19,000
Yeah, I think couple who's.

1137
02:08:19,000 --> 02:08:32,000
Yeah, I think it's solar is not a good cost proposition without a battery under the.

1138
02:08:32,000 --> 02:08:34,000
I'm doing them requirements.

1139
02:08:34,000 --> 02:08:35,000
That's right.

1140
02:08:35,000 --> 02:08:38,000
But yeah, for the most part, we need a battery now.

1141
02:08:38,000 --> 02:08:40,000
Yeah, and we have also.

1142
02:08:40,000 --> 02:08:48,000
Yeah, so I think I think that moving forward it will it sounds like there's already a pretty high percentage with the ones that are doing it now.

1143
02:08:48,000 --> 02:08:53,000
We are seeing with other CACs that are running similar programs. I think they're first.

1144
02:08:53,000 --> 02:08:59,000
We talked to one in a committee meeting and their first month they had that recently happened.

1145
02:08:59,000 --> 02:09:01,000
There was similar rebate levels.

1146
02:09:01,000 --> 02:09:04,000
They had approximately 30 participants that month.

1147
02:09:04,000 --> 02:09:09,000
So considering just one of the other CACs as a reference.

1148
02:09:09,000 --> 02:09:15,000
It's it's one that I think we'll just have to see within the first six months what we would get and.

1149
02:09:15,000 --> 02:09:18,000
Yeah, probably using that as a better reference.

1150
02:09:18,000 --> 02:09:21,000
I wonder if you have any information, you know, that.

1151
02:09:21,000 --> 02:09:27,000
In trying to make sure that we're serving all our customers and this is available for lower income customers.

1152
02:09:27,000 --> 02:09:28,000
We're kind of counting on.

1153
02:09:28,000 --> 02:09:35,000
Ask you up being part of the equation so that lower income customers conceivably could get a hundred percent of the cost covered.

1154
02:09:35,000 --> 02:09:36,000
Do you have any idea.

1155
02:09:36,000 --> 02:09:39,000
I haven't followed it the last couple of years.

1156
02:09:39,000 --> 02:09:48,000
How as ship funding is going are they are they are they is it being funded to the level of of demand or is it.

1157
02:09:48,000 --> 02:09:52,000
Do they run out of money halfway through the year every year like they used to.

1158
02:09:52,000 --> 02:09:54,000
That's a good question.

1159
02:09:54,000 --> 02:10:01,000
I I'd have to look back on that and get back to you in terms of their funding levels and whether that runs out at the end of the year not but I can check on that.

1160
02:10:01,000 --> 02:10:08,000
So I think that that would be something we want to be looking at contingently that we don't want this to just be kind of like solar used to be.

1161
02:10:08,000 --> 02:10:13,000
Something that benefited people of a lot of means.

1162
02:10:13,000 --> 02:10:22,000
And maybe think about other strategies to make sure we're serving our low income customers also in some component of this.

1163
02:10:22,000 --> 02:10:33,000
I was really glad to hear you talking about taking a look you know six months down the road and that we do have more program funding available conceivably so that if this program was.

1164
02:10:33,000 --> 02:10:41,000
And a strong response that potentially we'd be able to apply more program funding.

1165
02:10:41,000 --> 02:10:43,000
To continue it.

1166
02:10:43,000 --> 02:10:58,000
I just wondered if you could give us a look at where we are what what the staff's projections are you know is the end of last year it was it was somewhat disappointing that we were not utilizing a bigger percent of the funds that.

1167
02:10:58,000 --> 02:11:08,000
Or did it make available to us. Do you have any if you guys looked at sort of where you think we're going to be at the end of the year I know that you know there's a lot of variables it's hard to know but.

1168
02:11:08,000 --> 02:11:18,000
Do you do you see the possibility with all of our programs to still have some room to increase budget if demand ends up being high.

1169
02:11:18,000 --> 02:11:39,000
In terms of budget projections that's in the works right now but from a high level where we stand through year end the two million for battery rebate program we wouldn't currently be looking to go back for board approval in terms of that overall budget amount and then in terms of additional I think we'd have to see where it goes from there I don't have a.

1170
02:11:39,000 --> 02:11:54,000
I don't have a big picture on the budget and I think that's what that is really important for you and the two million we were looking at in terms of projection and that should fit within our existing energy programs budget and then yes and as time goes on we'd keep evaluating that on a monthly basis and see how it.

1171
02:11:54,000 --> 02:12:02,000
And the big picture on our budget, does it still look like we have a fair amount of excess funds?

1172
02:12:02,000 --> 02:12:04,000
I mean, maybe that's the wrong term.

1173
02:12:04,000 --> 02:12:09,000
The funds that we may not spend during the year depending on how the project uptake is.

1174
02:12:09,000 --> 02:12:14,000
I mean, is your best estimate that there might be some extra funds at this point in time?

1175
02:12:14,000 --> 02:12:23,000
Well, I'm hesitant to give a response set just because we're doing a lot right now to train increased project impact.

1176
02:12:23,000 --> 02:12:27,000
Like we expanded scope of plan year fleet.

1177
02:12:27,000 --> 02:12:31,000
We're looking at various outreach methods of different programs.

1178
02:12:31,000 --> 02:12:36,000
But we are certainly with that two million for the battered rebate programs saying that aside.

1179
02:12:36,000 --> 02:12:39,000
And there is a chance there could be extra available.

1180
02:12:39,000 --> 02:12:42,000
And that's part of the evaluation that we'd be doing.

1181
02:12:42,000 --> 02:12:43,000
Okay.

1182
02:12:43,000 --> 02:12:45,000
Well, thank you.

1183
02:12:45,000 --> 02:12:49,000
Do we have any public comment on this item?

1184
02:12:49,000 --> 02:12:52,000
No, public comment, sure.

1185
02:12:52,000 --> 02:12:53,000
All right.

1186
02:12:53,000 --> 02:12:55,000
Well, we have a motion in a second on the floor.

1187
02:12:55,000 --> 02:12:58,000
Can we have a roll call vote, please?

1188
02:12:58,000 --> 02:12:59,000
Thank you, sure.

1189
02:12:59,000 --> 02:13:00,000
Alan.

1190
02:13:02,000 --> 02:13:03,000
Okay.

1191
02:13:03,000 --> 02:13:04,000
Alan.

1192
02:13:04,000 --> 02:13:05,000
Sir.

1193
02:13:05,000 --> 02:13:06,000
Alan.

1194
02:13:06,000 --> 02:13:07,000
Alan.

1195
02:13:07,000 --> 02:13:08,000
All right.

1196
02:13:08,000 --> 02:13:09,000
Alan.

1197
02:13:09,000 --> 02:13:10,000
I.

1198
02:13:10,000 --> 02:13:11,000
Dan was?

1199
02:13:11,000 --> 02:13:12,000
No.

1200
02:13:12,000 --> 02:13:13,000
I.

1201
02:13:13,000 --> 02:13:14,000
Jesus.

1202
02:13:14,000 --> 02:13:15,000
I'm sorry.

1203
02:13:15,000 --> 02:13:16,000
Johnson.

1204
02:13:16,000 --> 02:13:18,000
I.

1205
02:13:18,000 --> 02:13:20,000
McCreish.

1206
02:13:20,000 --> 02:13:21,000
I.

1207
02:13:21,000 --> 02:13:22,000
No.

1208
02:13:22,000 --> 02:13:23,000
I.

1209
02:13:23,000 --> 02:13:24,000
Sarah.

1210
02:13:24,000 --> 02:13:25,000
I.

1211
02:13:25,000 --> 02:13:26,000
Stadman.

1212
02:13:26,000 --> 02:13:27,000
Hi.

1213
02:13:27,000 --> 02:13:28,000
Two to go.

1214
02:13:28,000 --> 02:13:29,000
Hi.

1215
02:13:29,000 --> 02:13:31,000
Vice chair Davis.

1216
02:13:31,000 --> 02:13:33,000
I.

1217
02:13:33,000 --> 02:13:34,000
Chair Keeper.

1218
02:13:34,000 --> 02:13:35,000
Hi.

1219
02:13:35,000 --> 02:13:36,000
Aye.

1220
02:13:36,000 --> 02:13:37,000
Chair Keeper.

1221
02:13:37,000 --> 02:13:38,000
Aye.

1222
02:13:38,000 --> 02:13:39,000
Okay.

1223
02:13:39,000 --> 02:13:44,000
So the motion is passed.

1224
02:13:44,000 --> 02:13:48,000
And would this be a good time for us to take a break?

1225
02:13:49,000 --> 02:13:52,000
I think it would be a good time for us to take a break.

1226
02:13:52,000 --> 02:13:59,000
So we will be back at 635.

1227
02:13:59,000 --> 02:14:02,000
Thank you.

1228
02:14:02,000 --> 02:14:03,000
Yes.

1229
02:14:18,000 --> 02:14:20,000
Thank you.

1230
02:14:48,000 --> 02:14:50,000
Thank you.

1231
02:17:00,000 --> 02:17:10,000
We're going to call our meeting back to order. Clerk, file, could you check for quorum, do I will call?

1232
02:17:10,000 --> 02:17:12,000
Yes, chair.

1233
02:17:12,000 --> 02:17:14,000
Aaron.

1234
02:17:14,000 --> 02:17:16,000
Here.

1235
02:17:16,000 --> 02:17:18,000
Bellman.

1236
02:17:18,000 --> 02:17:19,000
Present.

1237
02:17:19,000 --> 02:17:20,000
Byron.

1238
02:17:20,000 --> 02:17:22,000
Back for more.

1239
02:17:22,000 --> 02:17:24,000
Yes, more.

1240
02:17:24,000 --> 02:17:25,000
Here.

1241
02:17:25,000 --> 02:17:26,000
Johnson.

1242
02:17:26,000 --> 02:17:27,000
Here.

1243
02:17:27,000 --> 02:17:29,000
Niklash.

1244
02:17:29,000 --> 02:17:30,000
Here.

1245
02:17:30,000 --> 02:17:31,000
Morton.

1246
02:17:31,000 --> 02:17:32,000
Here.

1247
02:17:32,000 --> 02:17:33,000
So, though.

1248
02:17:33,000 --> 02:17:34,000
Here.

1249
02:17:34,000 --> 02:17:35,000
Steadman.

1250
02:17:35,000 --> 02:17:36,000
Here.

1251
02:17:36,000 --> 02:17:37,000
Toodoki.

1252
02:17:37,000 --> 02:17:38,000
Here.

1253
02:17:40,000 --> 02:17:52,000
Vice chair Davis.

1254
02:17:52,000 --> 02:17:54,000
I think she had to take off.

1255
02:17:54,000 --> 02:17:56,000
Thank you, and I'm chair Kaper.

1256
02:17:56,000 --> 02:17:57,000
Here.

1257
02:17:57,000 --> 02:17:58,000
You're here.

1258
02:17:58,000 --> 02:17:59,000
I have a call.

1259
02:17:59,000 --> 02:18:01,000
Thank you very much.

1260
02:18:01,000 --> 02:18:09,000
Our next item is to provide input and provide staff, a support, staff's action plan to implement the

1261
02:18:09,000 --> 02:18:13,000
UNServed communities outreach and engagement action plan.

1262
02:18:13,000 --> 02:18:17,000
So, I think this is a follow-up to the actual document itself.

1263
02:18:17,000 --> 02:18:21,000
How it's going to be implemented.

1264
02:18:21,000 --> 02:18:22,000
Yes.

1265
02:18:22,000 --> 02:18:24,000
Thank you, chair.

1266
02:18:24,000 --> 02:18:25,000
You'll be call.

1267
02:18:25,000 --> 02:18:28,000
We presented to you earlier this year.

1268
02:18:28,000 --> 02:18:35,000
The CAC had been instrumental in the development of our underserved communities outreach and engagement plan.

1269
02:18:35,000 --> 02:18:40,000
We've since decided to add an action plan element to that plan.

1270
02:18:40,000 --> 02:18:45,000
So, we really are looking at measurable outcomes and actions.

1271
02:18:45,000 --> 02:18:52,000
We presented at one of your meetings earlier this year that we were embarking on this initiative.

1272
02:18:52,000 --> 02:18:57,000
Saw your input on what items could be included in that action plan.

1273
02:18:57,000 --> 02:19:03,000
And we're now at the point where we have taken that input and created the action plan.

1274
02:19:03,000 --> 02:19:15,000
So, your input into this process has been invaluable and we're very much looking forward to receiving your feedback on this initiative.

1275
02:19:15,000 --> 02:19:19,000
And with that, I will turn things over to Jenna Espinoza.

1276
02:19:19,000 --> 02:19:24,000
She's our Manager of Customer Account Services and she will present this item.

1277
02:19:24,000 --> 02:19:26,000
Thank you.

1278
02:19:26,000 --> 02:19:27,000
Thank you.

1279
02:19:27,000 --> 02:19:28,000
Good evening.

1280
02:19:28,000 --> 02:19:30,000
Community Advisory Council.

1281
02:19:30,000 --> 02:19:32,000
Thank you for the opportunity to present to you.

1282
02:19:32,000 --> 02:19:41,000
I just want to note that in addition to leading our community engagement and customer services teams.

1283
02:19:41,000 --> 02:19:49,000
I am also accompanied by my colleague Fernando O'Connor who's in the audience in the main room tonight.

1284
02:19:49,000 --> 02:19:55,000
And as a member of my team, she leads our bilingual community engagement efforts.

1285
02:19:59,000 --> 02:20:11,000
This evening I will be sharing an update on the work that has been conducted to review and prioritize outreach strategies in furtherance of the underserved communities outreach and engagement plan.

1286
02:20:11,000 --> 02:20:20,000
And I subsequent development of an action plan which is intended to guide staffs activities throughout the next fiscal year.

1287
02:20:20,000 --> 02:20:25,000
In the instance that you are not already familiar with the underserved communities outreach and engagement plan.

1288
02:20:25,000 --> 02:20:33,000
I want to share a brief background on the plan and revisit our definition of underserved communities.

1289
02:20:33,000 --> 02:20:48,000
The underserved communities outreach and engagement plan was developed by 3CE staff and an ad hoc committee of the community advisory committee in 2021 and accepted by the policy board in 2022.

1290
02:20:49,000 --> 02:21:04,000
In April this year, we are not done. I brought to an update on the agency's progress in the plan and presented a preliminary action plan to prioritize staffs work in the Serena for the next fiscal year.

1291
02:21:04,000 --> 02:21:11,000
3CE considers communities to be underserved if they are underrepresented in matters discussed by the agency.

1292
02:21:11,000 --> 02:21:19,000
And as an access to public investments resources, education and information about energy service is limited.

1293
02:21:19,000 --> 02:21:38,000
As a role, communities face greater barriers to access because of their geographic location, cultural or language differences socioeconomic status, health risks, their position within the digital divide and exposure to environmental hazards.

1294
02:21:38,000 --> 02:21:48,000
While we are always actively building relationships and meeting with key community partners, we want to hold focused meetings specifically for the purpose of conducting and

1295
02:21:48,000 --> 02:21:55,000
informal rapid needs assessments, specifically focused on underserved communities.

1296
02:21:55,000 --> 02:22:03,000
To do this, we met internally across departments with a handful of current and past members of the community advisory council.

1297
02:22:03,000 --> 02:22:11,000
10 community-based organizations across our service area and four public electricity providers across the state.

1298
02:22:12,000 --> 02:22:21,000
In our internal meetings, we identified lessons learned since development of plan and current barriers to more equitably serving our customers.

1299
02:22:21,000 --> 02:22:29,000
And we met with current and past members of the community advisory council who were involved in the development of the original plan.

1300
02:22:30,000 --> 02:22:40,000
Now, while there are thousands of community-based organizations in our service area for the purpose of prioritizing our work under this plan for the next fiscal year,

1301
02:22:40,000 --> 02:22:49,000
we met with community-based organizations that provide direct services to those community members in our service area for the most economically vulnerable.

1302
02:22:49,000 --> 02:22:57,000
Through these conversations, we learned that while many of the agencies have the ability to serve customers in English and Spanish,

1303
02:22:57,000 --> 02:23:05,000
translating into indigenous languages even for the purpose of supporting their most basic of needs is very challenging.

1304
02:23:05,000 --> 02:23:16,000
This emphasized even further how important it is for us to simplify our communications in both English and Spanish to make it as easy as possible to share our message.

1305
02:23:17,000 --> 02:23:24,000
One of these organizations was focused in particular on culturally and linguistically appropriate marketing and outreach,

1306
02:23:24,000 --> 02:23:32,000
and this conversation highlighted ways that we could reduce barriers to participation in our programs through new outreach strategies.

1307
02:23:32,000 --> 02:23:38,000
These conversations also centered around the cost of living with housing being the most challenging.

1308
02:23:38,000 --> 02:23:47,000
Most of the agencies we spoke to provide direct bill pay assistance, but there was varying consistency across these agencies in them going,

1309
02:23:47,000 --> 02:23:57,000
and referring customers to care for a worldwide heap and we see a great opportunity to improve in this arena.

1310
02:23:58,000 --> 02:24:08,000
We also met with the community foundation in each county to get a regional view of the needs facing our community and the organizations doing work that is most relevant to our agency.

1311
02:24:08,000 --> 02:24:21,000
These conversations were focused on identifying potential partners with whom we could build stronger relationships to advance awareness of care fair and other bill pay assistance programs.

1312
02:24:21,000 --> 02:24:46,000
I lost my third programs that reach winners, reduced barriers, and increased the impact of energy programs on underserved communities through direct install pilots and building workforce development pathways.

1313
02:24:46,000 --> 02:25:02,000
Additionally, we met with four other public electricity providers such as ourselves to discuss best practices in energy equity through the maintaining relationships with community-based organizations and energy program design.

1314
02:25:02,000 --> 02:25:09,000
These key findings have been developed into an action plan for fiscal year 2024 25.

1315
02:25:09,000 --> 02:25:27,000
The action plan follows the format of the underserved communities outreach and engagement plan, and therefore has been organized into four key goals on the screen.

1316
02:25:27,000 --> 02:25:42,000
To increase awareness about customer financial resources, we aim to establish relationships with one social service agency and each county to build awareness among community-based organizations regarding our competitive rates,

1317
02:25:42,000 --> 02:25:55,000
develop bilingual resources, new call center scripts, and continue to host our farmwork or outreach program.

1318
02:25:55,000 --> 02:26:10,000
To increase awareness and access to energy programs, we intend to create an inquiry process to help specific customers complete their energy program applications and use this as an opportunity to identify ways to improve the application process.

1319
02:26:10,000 --> 02:26:17,000
We're also partnering with at least two community-based organizations to advance applications.

1320
02:26:17,000 --> 02:26:25,000
We will also explore the pilot of a direct install program for heat pumps.

1321
02:26:25,000 --> 02:26:39,000
To collect customer feedback, we will host focus groups, explore opportunities to support career pathways, and continue to incorporate Spanish language outreach into our annual customer survey.

1322
02:26:39,000 --> 02:27:05,000
Finally, we will launch a re-enrollant and customer awareness outreach campaign that will include a focus on caring for customers, social media, developing a process to adjust our materials so that they're easier to read and connect better with Spanish-speaking customers, their Spanish media, and by featuring Spanish speakers in our promotional campaigns.

1323
02:27:05,000 --> 02:27:15,000
So I mentioned knowledge that measuring the success of engagement in underserved communities is a challenge that 3CE and other agencies are still working on.

1324
02:27:15,000 --> 02:27:21,000
CS and members ask that we build a set of measures for this action plan in order to track benchmarks.

1325
02:27:22,000 --> 02:27:39,000
The measurable items that were included in the plan are to finalize relationships and partner with one social service agency in each county in order to share 3CE's information regarding bill assistance rates, cost-saving tactics, and general awareness.

1326
02:27:39,000 --> 02:27:47,000
To host 16 pharmacist outreach events to distribute information on care, care, and 3CE programs.

1327
02:27:47,000 --> 02:28:00,000
To develop one screen share instruction and video on how to complete an energy program's application based on common barriers identified through the program inquiry process.

1328
02:28:00,000 --> 02:28:04,000
The partner was at least two community-based organizations.

1329
02:28:04,000 --> 02:28:07,000
One, if you could go back one slide.

1330
02:28:07,000 --> 02:28:18,000
Thank you. One in each, the Northern and Southern parts of our region to facilitate increased program referrals and energy program application assistance.

1331
02:28:18,000 --> 02:28:27,000
On a quarterly basis, review and address customer feedback and barriers identified during the energy programs inquiry process.

1332
02:28:27,000 --> 02:28:34,000
To continue to incorporate Spanish language outreach as part of our annual customer survey.

1333
02:28:34,000 --> 02:28:45,000
To develop a process of using infographics and narratives to align development of new and updated materials with the community's literacy levels.

1334
02:28:45,000 --> 02:28:53,000
And to feature Spanish speaking customers and community members in two paid promotional campaigns.

1335
02:28:54,000 --> 02:29:10,000
So, in conclusion, I want to acknowledge the time that dozens of people took to meet with us to help us think creatively to identify barriers and solutions and identify ways that we can show them community better and more successfully.

1336
02:29:10,000 --> 02:29:20,000
And for not in particular, did the heavy lifting to organize these meetings and put thought into how those meetings could be most successful.

1337
02:29:20,000 --> 02:29:28,000
And she was very thoughtful and expressing her gratitude to each and every individual who sat down with us.

1338
02:29:28,000 --> 02:29:39,000
So with that, the full action plan is in your pocket and after we receive your feedback today, we'll be bringing this action plan to the policy board during their June 26 meeting.

1339
02:29:39,000 --> 02:29:45,000
So thank you for your time and attention this evening and I'm happy to answer any questions.

1340
02:29:45,000 --> 02:29:47,000
Thank you very much.

1341
02:29:47,000 --> 02:29:51,000
Do we have questions or comments from the council?

1342
02:29:53,000 --> 02:29:56,000
Council member Johnson.

1343
02:29:56,000 --> 02:29:57,000
Thank you.

1344
02:29:57,000 --> 02:30:00,000
So at some point, I'm imagining.

1345
02:30:00,000 --> 02:30:07,000
As you're deploying this plan, you'll be feeding back and evaluating an update on the plan, how

1346
02:30:07,000 --> 02:30:12,200
it's going, how you're hitting your metrics, so forth and so if that's a question, I assume

1347
02:30:12,200 --> 02:30:16,840
that you're going to be doing that and you'll be bringing that back to the CAC episodically

1348
02:30:16,840 --> 02:30:20,240
to let us know how it's going. I hope.

1349
02:30:20,240 --> 02:30:26,680
Yes, so this is a action plan for the next fiscal year, so I would imagine that we would give

1350
02:30:26,680 --> 02:30:33,680
an update perhaps mid year, but we haven't determined exact cadence of feedback.

1351
02:30:33,680 --> 02:30:39,680
That seems right, thank you.

1352
02:30:39,680 --> 02:30:48,680
I'm not seeing comments from other council members. I had one question. I know that there's

1353
02:30:48,680 --> 02:30:53,680
some specific measures that we've taken in the past that are planning the future for

1354
02:30:53,680 --> 02:31:00,680
reaching out to farm workers, which are you really, are artists to reach customers.

1355
02:31:00,680 --> 02:31:09,680
I wonder if you have any other strategies for trying to connect with other low-income groups,

1356
02:31:09,680 --> 02:31:14,680
besides farm workers, groups or individuals who aren't farm workers?

1357
02:31:14,680 --> 02:31:22,680
Yes, so this next fiscal year, we will really be focusing on formalizing a few key relationships

1358
02:31:22,680 --> 02:31:29,680
with community-based organizations in hopes that those organizations that are already doing

1359
02:31:29,680 --> 02:31:40,680
direct service or grassroots-based work will be able to better connect with those community members.

1360
02:31:40,680 --> 02:31:48,680
I think that's great. We're making further connections with our community-based organizations.

1361
02:31:48,680 --> 02:31:57,680
I think there are a resource that we should continue to develop relationships with

1362
02:31:57,680 --> 02:31:59,680
Congress Mayor Soto.

1363
02:31:59,680 --> 02:32:01,680
I just got promoted.

1364
02:32:01,680 --> 02:32:04,680
I just got promoted.

1365
02:32:04,680 --> 02:32:12,680
I have, well first, I do want to commend the hard work that went into developing this action plan.

1366
02:32:12,680 --> 02:32:16,680
And thank you for the presentation. I thought it was very thorough.

1367
02:32:16,680 --> 02:32:21,680
And what impressed me the most is how community-centered your strategies are.

1368
02:32:21,680 --> 02:32:24,680
But I think that's valuable. It's very important.

1369
02:32:24,680 --> 02:32:30,680
It's key. There was a couple of points that were mentioned that kind of stuck out at me and

1370
02:32:30,680 --> 02:32:38,680
identifying who those trusted messengers are in the communities to be able to further expand the conversation

1371
02:32:38,680 --> 02:32:43,680
on this and not just from a community education perspective, but even just breaking it down

1372
02:32:43,680 --> 02:32:52,680
to what are the benefits and what are the messages that align most with the core values of the communities you're trying to reach.

1373
02:32:52,680 --> 02:32:57,680
And I often boast and say that Mexicans invented reuse recycle.

1374
02:32:57,680 --> 02:33:02,680
And because nothing is wasted in our homes and it's just part of our culture.

1375
02:33:02,680 --> 02:33:10,680
Part of our values, we don't waste. I don't go and buy garbage bags.

1376
02:33:10,680 --> 02:33:15,680
That's just one very minor example.

1377
02:33:15,680 --> 02:33:27,680
But taking care of and being good stewards of the earth is very important to many indigenous members of our community

1378
02:33:27,680 --> 02:33:32,680
and most especially in the culture that I represent as well.

1379
02:33:32,680 --> 02:33:39,680
It's very important to us. So being able to come from that message point will be very well received

1380
02:33:39,680 --> 02:33:45,680
and it will resonate with most of the community members that you're trying to reach and what is considered the heart to reach

1381
02:33:45,680 --> 02:33:51,680
or the underserved and under-resourced historically marginalized communities. I think that's really important.

1382
02:33:51,680 --> 02:34:01,680
I also wanted to state that I, the building the relationships across sectors is very valuable in reaching the communities

1383
02:34:01,680 --> 02:34:06,680
and particularly in media as well when you have strong relationships with media.

1384
02:34:06,680 --> 02:34:17,680
Not only will they give you more for your book, but they'll also definitely help continue to spread the word and have conversations around that.

1385
02:34:17,680 --> 02:34:32,680
One particular radio station in the Latino communities, Spanish speaking community, radio is usually the most the biggest form of media that we rely on and get our information from

1386
02:34:32,680 --> 02:34:37,680
because we take radios everywhere. They're in the fields if you were in the hospitality industry.

1387
02:34:37,680 --> 02:34:42,680
It's what's playing in the background and the kitchens and the restaurants that's what's playing in the background.

1388
02:34:42,680 --> 02:34:51,680
So having deep and strong relationships with media is going to have a big impact in the work that you're doing with this action plan.

1389
02:34:51,680 --> 02:35:05,680
One particular station, not just because it's my favorite and I used to be a volunteer DJ, radio, radio, they have several talk shows throughout the week.

1390
02:35:05,680 --> 02:35:12,680
And really that's another strategy I would recommend you consider is working with them so that they could break down.

1391
02:35:12,680 --> 02:35:18,680
I mean, you could probably have a show every month just to break down a lot of the work that we're doing here.

1392
02:35:18,680 --> 02:35:26,680
So that you can kind of focus on different things and compartmentalize, you know, big part of what you want to do before you operationalize is normalized, right?

1393
02:35:26,680 --> 02:35:40,680
So really bringing this conversation to community in a very unique way that is not just not just comprehensive but also relational and that aligns with core values.

1394
02:35:40,680 --> 02:35:44,680
I think you're going to go a long way when when you approach it in that manner.

1395
02:35:44,680 --> 02:35:46,680
So those are my comments. Thank you very much.

1396
02:35:46,680 --> 02:35:50,680
Thank you for the hard work. Thank you, Rosemary.

1397
02:35:50,680 --> 02:35:53,680
Councilmember Norton.

1398
02:35:53,680 --> 02:36:01,680
Yeah, I also want to commend the hard work that you're doing and just to sort of support what Councilmember Soto just said.

1399
02:36:01,680 --> 02:36:07,680
I think radio by I think my friend Jose Martinez saw Donna just became colleague executive director of that.

1400
02:36:07,680 --> 02:36:11,680
So I think that's a great resource and she shouldn't pass it up.

1401
02:36:11,680 --> 02:36:22,680
And the other just piece of advice that I didn't see it here, but maybe it's in the CBOs that you're hiring, but also to work, especially in San不了 County.

1402
02:36:22,680 --> 02:36:27,680
I think work with the communities of faith.

1403
02:36:27,680 --> 02:36:38,680
I think especially in San不了 County, there's a lot of folks that are attending church on city mornings that aren't outside of the normal places of contact.

1404
02:36:38,680 --> 02:36:48,680
And so I think that maybe an effort is probably true of other places, but I know in San不了 County that that's a place you don't want to mess in order to reach I think the target audience.

1405
02:36:48,680 --> 02:36:51,680
Thank you.

1406
02:36:51,680 --> 02:36:55,680
Thank you.

1407
02:36:55,680 --> 02:37:06,680
Yeah, I just I wanted to say one of the reasons I've proud to have been involved with the organization is because of the priority we placed on reaching out to underserved communities.

1408
02:37:06,680 --> 02:37:11,680
And the resources we put to that and the great staff work that you guys have been doing.

1409
02:37:11,680 --> 02:37:14,680
So appreciate that.

1410
02:37:14,680 --> 02:37:19,680
This item is I believe an action item for us to make a recommendation to the policy board.

1411
02:37:19,680 --> 02:37:26,680
So I would entertain a motion on that.

1412
02:37:26,680 --> 02:37:29,680
Second.

1413
02:37:29,680 --> 02:37:33,680
Do we have any further discussion on the motion?

1414
02:37:33,680 --> 02:37:36,680
Chair, we do need to call for public comments.

1415
02:37:36,680 --> 02:37:37,680
That's an excellent idea.

1416
02:37:37,680 --> 02:37:41,680
Thank you.

1417
02:37:41,680 --> 02:37:43,680
It doesn't look like we have any public comments.

1418
02:37:43,680 --> 02:37:47,680
And I guess the motion and the second.

1419
02:37:47,680 --> 02:37:51,680
Thank you.

1420
02:37:51,680 --> 02:37:53,680
Norton, Norton made the motion.

1421
02:37:53,680 --> 02:37:55,680
Statement second.

1422
02:37:55,680 --> 02:37:59,680
Thank you.

1423
02:37:59,680 --> 02:38:02,680
Could you please call a roll call vote?

1424
02:38:02,680 --> 02:38:03,680
Yes.

1425
02:38:03,680 --> 02:38:04,680
Chair.

1426
02:38:04,680 --> 02:38:05,680
Alan.

1427
02:38:05,680 --> 02:38:06,680
I.

1428
02:38:06,680 --> 02:38:09,680
Dr. Domain.

1429
02:38:09,680 --> 02:38:11,680
All right.

1430
02:38:11,680 --> 02:38:12,680
All right.

1431
02:38:12,680 --> 02:38:13,680
Five in.

1432
02:38:13,680 --> 02:38:14,680
Aye.

1433
02:38:14,680 --> 02:38:15,680
Timers.

1434
02:38:15,680 --> 02:38:17,680
Aye.

1435
02:38:17,680 --> 02:38:18,680
Johnson.

1436
02:38:18,680 --> 02:38:19,680
Yes.

1437
02:38:19,680 --> 02:38:21,680
Thanks.

1438
02:38:21,680 --> 02:38:23,680
Nick Wish.

1439
02:38:23,680 --> 02:38:26,680
Aye.

1440
02:38:26,680 --> 02:38:28,680
Norton.

1441
02:38:28,680 --> 02:38:30,680
Aye.

1442
02:38:31,680 --> 02:38:32,680
So, though.

1443
02:38:32,680 --> 02:38:34,680
Aye.

1444
02:38:34,680 --> 02:38:35,680
Statement.

1445
02:38:35,680 --> 02:38:36,680
Yes.

1446
02:38:36,680 --> 02:38:38,680
To it to Boogie.

1447
02:38:38,680 --> 02:38:40,680
Aye.

1448
02:38:40,680 --> 02:38:41,680
Chair.

1449
02:38:41,680 --> 02:38:42,680
Aye.

1450
02:38:42,680 --> 02:38:45,680
Motion is carry.

1451
02:38:45,680 --> 02:38:50,680
Our next item is to receive a report from our nominations committee.

1452
02:38:50,680 --> 02:38:59,680
And before I turn that silver to Wayne Norton, who's going to bring that to us, I just wanted to say.

1453
02:39:00,680 --> 02:39:01,680
What a pleasure.

1454
02:39:01,680 --> 02:39:06,680
It's been sharing this council for the last two years and serving on it for the last six years.

1455
02:39:06,680 --> 02:39:12,680
It's an amazing organization to have been part of the growth, if a nominal growth.

1456
02:39:12,680 --> 02:39:21,680
And just to see us from our early beginnings get up to the high level of professional work that's being done now.

1457
02:39:21,680 --> 02:39:24,680
I really enjoyed working with the staff.

1458
02:39:24,680 --> 02:39:27,680
I'm happy to see new staff coming on board today.

1459
02:39:27,680 --> 02:39:33,680
Especially enjoyed working the last two years with Catherine and Rob who I've been working closely with.

1460
02:39:33,680 --> 02:39:39,680
And I think that I've served with 26 members on this council over the last six years.

1461
02:39:39,680 --> 02:39:47,680
And, you know, the thing I've been impressed with is I don't think people have come to this this room with their own agendas.

1462
02:39:47,680 --> 02:39:54,680
Even though some of us were put on on the council because of the particular interest we had previously.

1463
02:39:54,680 --> 02:40:03,680
I think universally people have come here because they were committed to the big picture work that we're trying to do in terms of climate.

1464
02:40:03,680 --> 02:40:14,680
And we've just had a number of terrific council members that's been really a pleasure serving with all of you.

1465
02:40:14,680 --> 02:40:18,680
So council number.

1466
02:40:18,680 --> 02:40:20,680
Yeah, thank you.

1467
02:40:20,680 --> 02:40:24,680
And first of all, I just went before we pick us success.

1468
02:40:24,680 --> 02:40:35,680
I just want to say thanks to Seth, you know, Seth that I've worked together on a numerous projects over the 30 or 35 years that we've known each other.

1469
02:40:35,680 --> 02:40:37,680
And Seth has always had.

1470
02:40:37,680 --> 02:40:44,680
Seth has always had the community and heart and in front of mind and broader community.

1471
02:40:44,680 --> 02:40:52,680
And when it comes to the three CE remember, Seth has been with this organization before it became an organization.

1472
02:40:52,680 --> 02:41:02,680
Seth was one of the grassroots people who worked hard to build the public support for this for this organization to exist.

1473
02:41:02,680 --> 02:41:11,680
So, you know, Seth's been here since before the beginning and I know that he will not this won't be the last time while he was voice.

1474
02:41:11,680 --> 02:41:19,680
I'm sure that when Janie calls for public comment, I'm sure that someday Seth is going to be the guy out there and the security attention.

1475
02:41:19,680 --> 02:41:22,680
So anyway, thank you, Seth, appreciate all of you that.

1476
02:41:22,680 --> 02:41:23,680
So thank you.

1477
02:41:23,680 --> 02:41:25,680
Just start when you yield for a moment.

1478
02:41:25,680 --> 02:41:26,680
Yeah, please.

1479
02:41:26,680 --> 02:41:27,680
Just chairman.

1480
02:41:27,680 --> 02:41:30,680
I, I too am stepping down.

1481
02:41:30,680 --> 02:41:34,680
And I'd like to also express my appreciation for your leadership these last two years.

1482
02:41:34,680 --> 02:41:40,680
And as Mr. Norton said, all the years prior certainly to before I got here six years ago as well.

1483
02:41:40,680 --> 02:41:47,680
So well done, but may I may I make just a few closing remarks also and unless you prefer I go later.

1484
02:41:47,680 --> 02:41:50,680
Okay, I just want to say a couple of things as well.

1485
02:41:50,680 --> 02:41:56,680
I really appreciate this this council as does as does the chair.

1486
02:41:56,680 --> 02:41:59,680
I appreciate all of you as volunteers.

1487
02:41:59,680 --> 02:42:05,680
I don't think you get enough recognition for serving your community.

1488
02:42:06,680 --> 02:42:10,680
A statement is nice, but it's not the same as saying thank you.

1489
02:42:10,680 --> 02:42:12,680
And I don't think you hear it often enough.

1490
02:42:12,680 --> 02:42:16,680
So I'd like to put my thank you in for your service as well.

1491
02:42:16,680 --> 02:42:20,680
Of course, it's self serving because I'm in the same capacity I suppose.

1492
02:42:20,680 --> 02:42:27,680
But I do want to say two other things and it's just a little bit of perspective and hopefully encouraging.

1493
02:42:27,680 --> 02:42:34,680
CCAs are the, are the the best thing that was created in the electric power industry in my career in California.

1494
02:42:34,680 --> 02:42:40,680
You know, we'd like to take credit for a lot of good things, you know, renewables and energy storage.

1495
02:42:40,680 --> 02:42:45,680
But CCAs are a really good thing.

1496
02:42:45,680 --> 02:42:56,680
And, you know, California is a leader in really throughout the world but certainly in the United States on environmental and energy issues.

1497
02:42:56,680 --> 02:43:03,680
And, and I have to say this vertically integrated regulated monopolies are antiquated structures.

1498
02:43:03,680 --> 02:43:09,680
We don't need them anymore, except for the wires, let them run the wires.

1499
02:43:09,680 --> 02:43:15,680
CCAs are the unrealized promise of deregulation that goes back to the 90s.

1500
02:43:15,680 --> 02:43:23,680
It really, it really is a powerful thing and I think some of some of us recognize that early on.

1501
02:43:23,680 --> 02:43:33,680
And, and, and I don't think we realize that are, we need to be reminded often that the full power of the promise of CCAs and what we have beneath our feed here.

1502
02:43:33,680 --> 02:43:36,680
We need to exercise it serve our customers.

1503
02:43:36,680 --> 02:43:39,680
We can serve customers without regulators.

1504
02:43:39,680 --> 02:43:52,680
Nobody else gets to do that without shareholders and without what I would characterize as the, the warp measures of the regulatory rate making process in San Francisco.

1505
02:43:52,680 --> 02:43:54,680
We don't do that.

1506
02:43:54,680 --> 02:44:03,680
And, and, so we need to continue that as an advisory council, help our elected officials put that power to work.

1507
02:44:03,680 --> 02:44:08,680
I'd also like to just say a little bit about 3 CE.

1508
02:44:08,680 --> 02:44:13,680
I've been promoting CCAs around the state for a long time.

1509
02:44:13,680 --> 02:44:16,680
I think this is amongst the best.

1510
02:44:16,680 --> 02:44:20,680
It's, it's got the best.

1511
02:44:20,680 --> 02:44:24,680
Governance structure as difficult as it may be.

1512
02:44:24,680 --> 02:44:29,680
And, and I think we've got some of the best staff and leadership.

1513
02:44:29,680 --> 02:44:33,680
And, of course, the champions that brought this forward years ago.

1514
02:44:33,680 --> 02:44:37,680
Every, every CCA had a, had a champion of some kind.

1515
02:44:37,680 --> 02:44:47,680
And, and, Mr. Mr. McPherson, any standout for having seen this through.

1516
02:44:47,680 --> 02:44:52,680
So, I encourage you to ask yourselves before every meeting or during every meeting.

1517
02:44:52,680 --> 02:44:55,680
What is the best thing we can do for three CE customers?

1518
02:44:55,680 --> 02:44:59,680
And I'll end on, on a bit of a cautionary note.

1519
02:45:00,000 --> 02:45:05,000
There is a organization out there that lurks constantly.

1520
02:45:05,000 --> 02:45:14,000
I think I've talked enough about that organization today, but I just want to remind you, this is an enormous threat to their business practices.

1521
02:45:14,000 --> 02:45:22,000
And as much as we need to get along and work together, they ran a ballot initiative and spent $50 million to try and bury this.

1522
02:45:22,000 --> 02:45:25,000
They ran legislation to try and bury this.

1523
02:45:25,000 --> 02:45:33,000
They've put in roadblocks, right in left, departing load, procurement, charge, and different allegations, on and on and on.

1524
02:45:33,000 --> 02:45:36,000
And you've overcome all those barriers.

1525
02:45:36,000 --> 02:45:39,000
Interconnection may be the new one.

1526
02:45:39,000 --> 02:45:43,000
Mr. Dyson Neal is gone.

1527
02:45:43,000 --> 02:45:50,000
And remember, they can even go bankrupt and still emerge from the dead.

1528
02:45:50,000 --> 02:45:53,000
We do not get that option.

1529
02:45:53,000 --> 02:46:02,000
So be vigilant because I just really think, as as low as the risk may be, the consequences are severe.

1530
02:46:02,000 --> 02:46:11,000
So again, I, my best wishes to all you, to all, it's exciting time with new leadership.

1531
02:46:11,000 --> 02:46:14,000
So I wish our new leaders good luck as well.

1532
02:46:14,000 --> 02:46:17,000
But Seth, you're going to pleasure working with you.

1533
02:46:17,000 --> 02:46:19,000
See you in the future.

1534
02:46:19,000 --> 02:46:22,000
Thank you.

1535
02:46:22,000 --> 02:46:23,000
All right.

1536
02:46:23,000 --> 02:46:26,000
So just a little bit about the process.

1537
02:46:26,000 --> 02:46:28,000
By the way, Jeff, thanks a lot.

1538
02:46:28,000 --> 02:46:31,000
I've learned a lot from you over the course of the couple years I've been here.

1539
02:46:31,000 --> 02:46:32,000
Thank you. I appreciate it.

1540
02:46:32,000 --> 02:46:33,000
And thank you for your service.

1541
02:46:33,000 --> 02:46:35,000
So that a little bit about the process.

1542
02:46:35,000 --> 02:46:45,000
So in order to not violate the broad act, all the communication to the CAC members was done through the clerk.

1543
02:46:45,000 --> 02:46:50,000
We explored interest and position.

1544
02:46:50,000 --> 02:46:55,000
Anyone who just didn't say no right out was contacted.

1545
02:46:55,000 --> 02:47:00,000
So we could delve into it a little bit more.

1546
02:47:00,000 --> 02:47:04,000
And I also want to acknowledge the work of John Hughes, who's in here tonight.

1547
02:47:04,000 --> 02:47:07,000
But, I can't remember John Hughes was served with me on the ad hoc.

1548
02:47:07,000 --> 02:47:13,000
And in the end, we have two great leaders that are going to, I hope,

1549
02:47:14,000 --> 02:47:18,000
lead us well and wisely through the next couple years.

1550
02:47:18,000 --> 02:47:22,000
Council members, Jonathan, to have a two-key, so her ignored.

1551
02:47:22,000 --> 02:47:25,000
And I was practicing that in the car.

1552
02:47:25,000 --> 02:47:26,000
I'm sorry.

1553
02:47:26,000 --> 02:47:28,000
I messed that up.

1554
02:47:28,000 --> 02:47:33,000
But I'm happy with the process, the process worked well, I think.

1555
02:47:33,000 --> 02:47:41,000
And so, Seth, if you're ready chair, I will make an nomination to,

1556
02:47:41,000 --> 02:47:45,000
oh, you want to do it from four, how would you want to proceed with the nominations,

1557
02:47:45,000 --> 02:47:47,000
would you like me to make a nomination?

1558
02:47:47,000 --> 02:47:49,000
Nomination for chair first, yeah.

1559
02:47:49,000 --> 02:47:50,000
All right.

1560
02:47:50,000 --> 02:47:53,000
I nominate Jenny Johnson for chair.

1561
02:47:53,000 --> 02:47:56,000
Okay, that's the nomination brought to us by the nominating committee.

1562
02:47:56,000 --> 02:48:01,000
Does anybody else have any further nominations for chair?

1563
02:48:01,000 --> 02:48:08,000
Can I ask the clerk to bring that to a vote, please?

1564
02:48:08,000 --> 02:48:10,000
Thank you chair, Alan.

1565
02:48:10,000 --> 02:48:12,000
Bye.

1566
02:48:14,000 --> 02:48:16,000
Dr. Downham.

1567
02:48:16,000 --> 02:48:18,000
Gladly, I.

1568
02:48:18,000 --> 02:48:20,000
Violin?

1569
02:48:20,000 --> 02:48:22,000
Very gladly. I.

1570
02:48:22,000 --> 02:48:23,000
Do you want more?

1571
02:48:23,000 --> 02:48:25,000
Yes, for sure.

1572
02:48:25,000 --> 02:48:27,000
Johnson?

1573
02:48:27,000 --> 02:48:29,000
Yes.

1574
02:48:29,000 --> 02:48:32,000
McClish?

1575
02:48:32,000 --> 02:48:34,000
Aye.

1576
02:48:34,000 --> 02:48:36,000
Northern?

1577
02:48:36,000 --> 02:48:37,000
Aye.

1578
02:48:38,000 --> 02:48:42,000
Staten?

1579
02:48:42,000 --> 02:48:43,000
Yes.

1580
02:48:43,000 --> 02:48:45,000
Do you want to vote?

1581
02:48:45,000 --> 02:48:46,000
Yes.

1582
02:48:46,000 --> 02:48:48,000
Chair Capron.

1583
02:48:48,000 --> 02:48:50,000
Aye.

1584
02:48:52,000 --> 02:48:56,000
And for vice chair, I nominate Norman Tuva.

1585
02:48:56,000 --> 02:48:57,000
Tuke?

1586
02:48:57,000 --> 02:48:58,000
Tuke?

1587
02:48:58,000 --> 02:48:59,000
Tuke, Tuke?

1588
02:48:59,000 --> 02:49:01,000
Tuke, Tuke, Tuke?

1589
02:49:01,000 --> 02:49:02,000
Sorry.

1590
02:49:03,000 --> 02:49:05,000
Thank you.

1591
02:49:05,000 --> 02:49:10,000
And do we have any nominations from the floor for vice chair?

1592
02:49:10,000 --> 02:49:15,000
Seeing none, could the clerk please call the roll?

1593
02:49:15,000 --> 02:49:17,000
Alan?

1594
02:49:17,000 --> 02:49:18,000
Aye.

1595
02:49:18,000 --> 02:49:20,000
Dr. Downham?

1596
02:49:20,000 --> 02:49:22,000
Aye.

1597
02:49:22,000 --> 02:49:23,000
Violin?

1598
02:49:23,000 --> 02:49:24,000
Very much.

1599
02:49:24,000 --> 02:49:26,000
Aye.

1600
02:49:26,000 --> 02:49:27,000
Evers?

1601
02:49:27,000 --> 02:49:29,000
Yes.

1602
02:49:30,000 --> 02:49:31,000
Johnson?

1603
02:49:31,000 --> 02:49:33,000
Yes.

1604
02:49:33,000 --> 02:49:35,000
McClish?

1605
02:49:35,000 --> 02:49:37,000
Aye.

1606
02:49:37,000 --> 02:49:38,000
Northern?

1607
02:49:38,000 --> 02:49:39,000
Aye.

1608
02:49:39,000 --> 02:49:41,000
So, then?

1609
02:49:41,000 --> 02:49:43,000
Aye.

1610
02:49:43,000 --> 02:49:44,000
Zadman?

1611
02:49:44,000 --> 02:49:46,000
Yes.

1612
02:49:46,000 --> 02:49:47,000
Do you want to vote?

1613
02:49:47,000 --> 02:49:49,000
Yes.

1614
02:49:49,000 --> 02:49:50,000
Check it, Cran.

1615
02:49:50,000 --> 02:49:52,000
Aye.

1616
02:49:52,000 --> 02:49:53,000
The eyes have it.

1617
02:49:53,000 --> 02:49:57,000
Congratulations to our new chair and vice chair.

1618
02:49:57,000 --> 02:50:10,000
It feels great to be leaving this body and good hands and look forward to working

1619
02:50:10,000 --> 02:50:13,000
with you guys in the future.

1620
02:50:13,000 --> 02:50:16,000
Is this my last name?

1621
02:50:16,000 --> 02:50:17,000
Yes.

1622
02:50:17,000 --> 02:50:19,000
Well, yeah.

1623
02:50:19,000 --> 02:50:21,000
And I just want to thank both of you.

1624
02:50:21,000 --> 02:50:23,000
Thank you very much for your service.

1625
02:50:23,000 --> 02:50:25,000
It's been great working with you.

1626
02:50:25,000 --> 02:50:32,000
And I do remember, Seth Kaper and being at 11 o'clock in the evening, Hollister City Council meeting.

1627
02:50:32,000 --> 02:50:37,000
Hang in there with us and answering all the questions we finally got a good vote on that one.

1628
02:50:37,000 --> 02:50:39,000
That was very painful.

1629
02:50:39,000 --> 02:50:43,000
So, he was there and he suffered through it all.

1630
02:50:43,000 --> 02:50:48,000
Thank you so much for your service and for your time and for what you helped build here.

1631
02:50:48,000 --> 02:50:51,000
And thank you for the committee.

1632
02:50:51,000 --> 02:50:52,000
Thanks, Wayne.

1633
02:50:52,000 --> 02:50:53,000
I appreciate it.

1634
02:50:53,000 --> 02:50:54,000
Thank you.

1635
02:50:55,000 --> 02:51:04,000
Thank you both Seth and Jeff for your guidance and your leadership being new to the board.

1636
02:51:04,000 --> 02:51:11,000
Or to the council to understand all of the intricacies that go behind and what's involved in electricity itself.

1637
02:51:11,000 --> 02:51:12,000
And so I'm learning a lot.

1638
02:51:12,000 --> 02:51:17,000
And all of the questions you guys asked are asking our things that I don't think of.

1639
02:51:17,000 --> 02:51:19,000
And so I appreciate the opportunity to learn.

1640
02:51:19,000 --> 02:51:21,000
We talked a little bit about it earlier.

1641
02:51:21,000 --> 02:51:26,000
Before it to serve me folks supporting you folks as council members and also this agency.

1642
02:51:26,000 --> 02:51:29,000
I've been also supporting our new chair.

1643
02:51:29,000 --> 02:51:31,000
So appreciate the opportunity.

1644
02:51:31,000 --> 02:51:33,000
Well.

1645
02:51:33,000 --> 02:51:35,000
Thank you.

1646
02:51:35,000 --> 02:51:38,000
Thanks for your willingness to serve.

1647
02:51:38,000 --> 02:51:39,000
Yeah.

1648
02:51:39,000 --> 02:51:41,000
How are we?

1649
02:51:41,000 --> 02:51:44,000
We are adjourned.

1650
02:51:44,000 --> 02:51:48,000
Before we adjourn chair, we do just have one last.

1651
02:51:48,000 --> 02:51:53,000
As you were I done.

1652
02:51:53,000 --> 02:52:06,000
Which is that as has been noted, this is the last meeting for two very important and longstanding members of this council.

1653
02:52:06,000 --> 02:52:13,000
Seth, you and Jeff have been members of the community advisory council since 2018.

1654
02:52:13,000 --> 02:52:21,000
You have both served as chair and both added so much value to this organization.

1655
02:52:21,000 --> 02:52:26,000
Not just this committee, but our agency as a whole.

1656
02:52:26,000 --> 02:52:37,000
So on behalf of everyone at three CE or board the staff, we want to really thank you both for your meaningful contributions.

1657
02:52:37,000 --> 02:52:42,000
We wish you all the best in your future endeavors and hope that you stay in touch.

1658
02:52:42,000 --> 02:52:50,000
And I do just want to present to you a small token of our appreciation.

1659
02:52:50,000 --> 02:52:52,000
Thank you.

1660
02:52:52,000 --> 02:52:54,000
Thank you.

1661
02:52:54,000 --> 02:52:56,000
Thank you.

1662
02:52:56,000 --> 02:52:57,000
Thank you.

1663
02:52:57,000 --> 02:52:58,000
Thank you.

1664
02:52:58,000 --> 02:52:59,000
Thank you.

1665
02:52:59,000 --> 02:53:01,000
Just for the record.

1666
02:53:01,000 --> 02:53:03,000
I wanted to announce that we did not have any.

1667
02:53:03,000 --> 02:53:05,000
That would comment on that last title.

1668
02:53:35,000 --> 02:53:39,000
Thank you.