PeninsulaCleanEnergyCitizen’sAdvisoryCommitteeJuly7,2016

Agenda

Calltoorder/Rollcall

AdministeringtheOathofOffice

PublicComment

Actiontosettheagendaandapproveconsentitems

RegularAgenda

1. UpdatesfromCountyStaff(Discussion)

RegularAgenda

2.PresentationonRenewableEnergyvsGreenhouseFreeEnergyWhitePaper

(Discussion)

Roadmap

1:OverviewofRenewablevs.GreenhouseGas-FreeEnergy

2:RenewableEnergyinCalifornia

4:MarketingChallenges

5:Nextsteps

3:GreenhouseGas-FreeEnergyinCalifornia

1:OverviewofRenewablevs.GreenhouseGas-FreeEnergy

RenewableEnergy- electricityfromasourcethatisnotdepletedwhenused,andisnotderivedfromfossilornuclearfuel.

GHG-FreeEnergy- electricitythatdoesnotemitcarbonorothergreenhousegases.

Renewable GHG-Free

BiomassandWaste LargeHydroelectric

Geothermal Nuclear

SmallHydroelectric

Solar

Wind

2:RenewableEnergyinCalifornia

California’sRenewablePortfolioStandards(RPS)–requiresretailsellersofelectricitytosourceacertainpercentageofelectricitythattheygeneratefromrenewablesourcesbyfixeddates.

2:RenewableEnergyinCalifornia

RenewableEnergyCertificates(RECs)

• Acceptedmechanismforverifying“renewable”power.

• Representattributes(typeofgeneration,facilitylocation,dateofservice,etc.)ofoneMegawatt-Hour(MWh)ofpower.

• Canbeeither“bundled”withthepowertheyrepresentandincludedinthesale,or“unbundled”andsoldseparately.

Source:PinkelandWeinrub,2013

2:RenewableEnergyinCalifornia

CaliforniaRPSPortfolioContentRequirements– renewablefacilitiesmaybelocatedanywhereintheWesternInterconnectionregion.

Source:WashingtonPost,2013

2:RenewableEnergyinCalifornia

CaliforniaRPSPortfolioContentRequirements– allrenewableenergyprocuredfromcontractsafterJune1,2010areseparatedintothreecategories,or“buckets.”

• Category1RECs– EnergyandRECs(typicallyfromCA)deliveredtoaCaliforniabalancingauthority(CBA)withoutsubstitutingelectricityfromanothersource.

Californiabalancingauthorities

Balancingauthoritiesareentitiesresponsibleforoperatingatransmissioncontrolarea.Theymatchgenerationwithloadandmaintainelectricfrequencyonthegrid.

Source:CaliforniaISO,2016

2:RenewableEnergyinCalifornia

CaliforniaRPSPortfolioContentRequirements– allrenewableenergyprocuredfromcontractsafterJune1,2010areseparatedintothreecategories,or“buckets.”RetailersarerequiredtomeetRPSobligationswithaminimumpercentageofbucket1RECsandamaximumpercentageofbucket3RECs.

• Category1RECs– EnergyandRECs(typicallyfromCA)deliveredtoaCaliforniabalancingauthority(CBA)withoutsubstitutingelectricityfromanothersource.

RPSFacility

CBA

2:RenewableEnergyinCalifornia

CaliforniaRPSPortfolioContentRequirements– allrenewableenergyprocuredfromcontractsafterJune1,2010areseparatedintothreecategories,or“buckets.”RetailersarerequiredtomeetRPSobligationswithaminimumpercentageofbucket1RECsandamaximumpercentageofbucket3RECs.

• Category2RECs– EnergyandRECs(typicallyfromanout-of-staterenewableenergyproject)thatcannotbedeliveredtoaCBAwithoutsubstitutingenergyfromanothersource(i.e.intermittentwindenergyneedstosubstituteinanotherenergysourcetomeetdemandduringtimeswhenthewindfacilityisnotgeneratingelectricity).

Bucket2energyis‘firmedandshaped’

Intermediary

RPSFacility

CBA

OtherPower

2:RenewableEnergyinCalifornia

CaliforniaRPSPortfolioContentRequirements– allrenewableenergyprocuredfromcontractsafterJune1,2010areseparatedintothreecategories,or“buckets.”RetailersarerequiredtomeetRPSobligationswithaminimumpercentageofbucket1RECsandamaximumpercentageofbucket3RECs.

• Category3RECs– UnbundledRECs,orRECsthatdonotmeetCategory1and2conditions.

UnbundledRECsdonotcontainenergyinthetransaction;rather,theyaretherightstoenergy

2:RenewableEnergyinCalifornia

CaliforniaRPSPortfolioContentRequirements– retailersarerequiredtomeetRPSobligationswithaminimumpercentageofBucket1RECsandamaximumpercentageofBucket3RECsovertime.

≥65% ≥75% ≥75%

≤10%≤10%≤15%

Trendtowardincreasing Bucket1RECs(CArenewableenergy)anddecreasing unbundledRECs.

2:RenewableEnergyinCalifornia

PowerContentLabel– informationrelatedtowhereelectricityretailerssourcetheirrenewableenergy– aswellastotalenergy– isfoundhere(distributedinalladvertisementsthatretailerssendcustomersviamailandemail).

• “Nutritionlabel”forelectricity.

• However,doesnotcorrelatetoRPScompliance(RECsretiredversusactuallyenergybroughtintogrid)

≥65% ≥75% ≥75%

3:GreenhouseGas-FreeEnergyinCalifornia

GHG-FreeEnergy– Allrenewableenergysourcesandlargehydroelectricfacilities(PG&E’sDiabloCanyonfacilityisclosing).

• GHGemissionsfordifferentsourcesarecalculatedwithavarietyofdifferentstandardsandmethodologies.InCA,theCaliforniaAirResourcesBoardprovidestheclosesttoanindustry-acceptedstandard.

• RetailersuseaGHGemissionsfactortodeterminetheproportionateuseofenergysourceswithintheirportfolio.AnemissionsfactorgoesupwhenenergydeliveredtothegridcontainsGHGs(i.e.coal),andgoesdownwhenenergydeliveredtothegridisderivedfromGHG-freesources.

MarinCleanEnergyEmissionsFactorSummary

PG&EEmissionFactorSummary

3:GreenhouseGas-FreeEnergyinCalifornia

PCECleanEnergy:twoproducts

4:MarketingChallenges

EcoPlus(Default) Eco100

50%Renewables

75%GHG-Free

100%Renewables

100%GHG-Free

100%Renewables

100%GHG-Free

PCECleanEnergyvs.PG&E

4:MarketingChallenges

EcoPlus(Default) Eco100

PG&E(Default) PG&ESolarChoice

30%Renewables

60%GHG-Free

50%Renewables

75%GHG-Free

100%Renewables

100%GHG-Free

Pricing:PCE&PG&E

4:MarketingChallenges

PeninsulaCleanEnergyECOplus

PeninsulaCleanEnergyECO100

PG&E(opt-out)

50% renewableenergy** 100% renewableenergy** 30% renewableenergy**

$44.97

PG&EElectricDelivery

$44.97

PG&EElectricDelivery

$44.97

PG&EElectricDelivery

$30.33

ElectricGeneration

$34.78

ElectricGeneration

$43.09

PG&EElectricGeneration

$10.61

AdditionalPG&EFees

$10.61

AdditionalPG&EFees

____

AdditionalPG&EFees

$85.91avg.totalcost $93.94avg.totalcost $88.07avg.totalcost

SampleResidentialCostComparison(EffectiveJune23,2016)

TypicalMonthlyElectricCharges*

PCEMarketing:focusmessagingeffortsoneither“renewable”or“GHG-free.”Challengesanddrawbackstoboth:

• MarketingPCEasGHG-Free:

o HigherpercentageofdefaultproductisGHG-freeincomparisontorenewableenergy.

o PCE’sportfoliocontains15%moreGHG-freeenergythanPG&E’sdefaultchoice.

o FutureStatelegislationmaystandardizegreenhousegasemissionaccounting(thisiscurrentlynotstandardized)andpotentiallychangethepercentageofGHG-freeenergythatPCEcanclaiminitsenergyportfolio.

o LocalClimateActionPlansarebasedonreducinggreenhousegasemissions.

o Itremainsunclearwhetherlocalresidentsmorepositivelyperceivetheterm“GHG-free.”

4:MarketingChallenges

PCEMarketing:focusmessagingeffortsoneither“renewable”or“GHG-free.”Challengesanddrawbackstoboth:

• MarketingPCEasRenewable:o Focusingonrenewablecontentisconsistentwith

existingStatelegislationandRPSreportingrequirements,possiblyleadingtolessconsumerconfusionandmorestablemarketing.

o PCE’senergyportfoliocontains20%morerenewableenergythanPG&E’sdefaultchoice.

o Itremainsunclearwhetherlocalresidentsmorepositivelyperceivetheterm“renewable”versus“GHG-free”energy.

4:MarketingChallenges

Howshouldmarketingproceed?GHG-freeorrenewable?

5:Nextsteps

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RegularAgenda

3.DiscussiononCommercialOutreachStrategiesandPartnershipsfor

Marketing(Discussion)

CommercialMarketingJune7,2016|CitizensAdvisoryCommittee

CommercialCustomersCommercialcustomersinclude‘traditional’businesses,aswellasschools,specialdistricts,hospitals,transitagencies,etc.

ü Officespacesü Restaurantsü Retailü Hospitalityü Schools– K-12;Communitycolleges;Universitiesü Specialdistricts—Wateragencies;wastewaterü Hospitalsü Transitagencies

MessagingCleanerelectricityatlowerrates

• Lowerrates:EmphasizingthatPCE’sdefaultproduct—ECOplus—costslessthanPG&E

• Localbenefit:ProgramrevenuereinvestedbackinSanMateoCounty

• Cleaner:– ECOplus is50%renewableand75%carbonfree

• (comparedto30%/60%forPG&E)– ECO100is100%renewableandcarbonfree,foronlyslightlymorethanwhat

theypaynow.

• Automaticenrollment

Keepingmessagingcleanandsimple.

Challenges

• Hardtoreachthe“decision-maker”—Eitherthebusinessownerorthepropertyowner

• Newprogram—Lackofeducation/awareness

• “Green”benefitmayhavelimitedappeal,especiallyifitisperceivedtobemoreexpensive

• Skepticismofgovernmentprograms

• Differentratesfordifferentcustomers– Maycausecustomerconfusion

CommercialOutreachStrategies

ü Collateral

ü Website

ü Informationalworkshops

ü Merchantwalks

ü Presentations/Tabling

ü Partnerships

Collateral

Collateral• Printed+web

• Toinformcustomers:Pamphlet,FAQ,Copyofenrollmentnotice,Packetw/brandedfolders

• ForcustomerstohelpmarketPCE:Postcard,poster,web-badge,windowcling

Website

WorkshopsInformationalworkshops• 4workshops+webinars

§ Invitationsviachambers/partnernewsletters,fliers,linksofwebsites,localpress?

• Targetaudience:Smallandmediumcommercialcustomers(businessowners)

• Goal:EducatelocalbusinessownersonPCE’sbenefitsandlowerrates

• Potentialpartnerships:Chambers,businessorganizations,cities

Spreadtheword:Circulateworkshopfliers,invitelocalbusinessowners,providePCEstafflistsoflocalbusinesses,articleinyournewsletter

MerchantWalksMerchantwalks• PCEstaffandtrainedvolunteerswillwalkkeybusiness

corridorsandtalktobusinessownersaboutPCE§ Hosttrainingworkshop§ Providepacketofinformation- collateral§ Identifykeybusinesscorridors

• Targetaudience:Smallandmediumcommercialcustomers(businessowners)

• Goal:EducatelocalbusinessownersonPCE’sbenefitsandlowerrates

• Potentialpartnerships:AllPCEchampions

Spreadtheword:Volunteertowalkyourcity/neighborhood,Helpusrecruitvolunteers,Providelistofbusinesscorridors,Talktolocalbusinessowners

Presentations/Tabling

Presentations/Tabling• Presentationsatbusinessevents,businessorganizations/associationsandevents

targetedatcommercialcustomers• Continuetotableatcommunityevents• 1:1meetingswithlarge/industrialcustomers

• Targetaudience:Smallandmediumcommercialcustomers(businessowners)

• Goal:IncreaseawarenessaboutandinterestinPCEandbuildbrandrecognition.

• Potentialpartnerships:AllPCEchampions,Cities,Chambers/BusinessOrganizations

Spreadtheword:Volunteertotable,NotifyPCEstaffofpotentialtabling/presentationopportunities(events,boardmeetings,membershipmeetings,etc.)

SchoolsSchools

• Targetaudience:K-12&Universities/communitycolleges;Private+public

• Goal:EducatelocalsuperintendentsandCBOsonPCE’sbenefitsandlowerrates

• Challenges:Ratesensitivity;Multipleaccountsindifferentlocations;Potentiallycomplexratestructures

• Potentialpartnerships:SMCSchoolBoardsAssociations,SMCOfficeofEducation,Cities

Howyoucanhelp:• ProvidePCEstaffwithalistofbusinessorganizations,localbusinesses

and/orbusinesscorridorsinyourarea

• Volunteeronamerchantwalkinyourneighborhood

• Recruitvolunteersformerchantwalk

• Circulateinformationforvolunteertrainingand/orbusinessworkshops

Howyoucanhelp:• Leverageand/orbuild1:1connectionswithlocalbusinessowners

• Circulatecollateral

• PutanarticleaboutPCEinyournewsletter

• NotifyPCEstaffofopportunitiestotableorprovideapresentation

Questions?

RegularAgenda

3.CommitteeMemberReports

Adjourn(nextmeetingAugust4th)