HomeMy WebLinkAbout03-31-2015 B3 Rumble, CA Clean PowerMayor Jan Howell Marx
San Luis Obispo City Hall
990 Palm Street
San Luis Obispo, CA 93401
Mayor Marx:
,� Y4
CLEAN POWER
COUNCIL MEETING,_q_34at 1 Zvi C _
ITEM NO.:Z�_
CA C \ear. �o.�e✓
March 31, 2015
Thank you for your time and engaging conversation on Monday, March 16th. The City of
San Luis Obispo has taken commendable first steps in exploring the benefits and
possibility of Community Choice. However, I understand from our meeting that San Luis
Obispo faces daunting challenges in starting a program - challenges in time and financial
resources, utilities expertise, and a lack of resources for ongoing program operation.
I founded California Clean Power to help cities just like San Luis Obispo overcome these
challenges. The public - private partnership model we have created will be transformative
for local governments, our State's energy market, and our shared environment.
Working together, San Luis Obispo can move quickly to establish a sustainable and
successful Community Choice program, and keep all of the control and benefits within
your community. California Clean Power provides a no cost, full - service solution, making
Community Choice easily available to every community in California in as little as 6 -8
months. We take on all of the market, financial and regulatory risk, while your city receives
guaranteed benefits.
The benefits for the City of San Luis Obispo are tremendous. Over the course of 10 years,
we can fix your community's energy costs, while increasing the amount of renewable
power delivered - as much as approximately 75% renewable - and generate a new stream
of revenue - as much as approximately $33 million - to build the economic and
environmental resilience of the City.
We look forward to what we hope will be a long and successful partnership.
CEO, California
r
cc: San Luis Obispo City Council
San Luis Obispo City Manager
California Clean Power I www. cac Lean power. corn 1 (707) 623 -99331 prumble@cacleanpower.corn
1,
California
CLEANPOWER
Community Choice Simplified
N
Our Core Team
Peter Rumble, CEO: over 15 years of staff level California government leadership
focusing on the environment, sustainability and health related issues; former Sonoma
County Deputy Administrator overseeing strategic projects, legislative and community
afairs, and public information; member of California Institute of Local Government.
Kelly Foley, General Counsel & Director of Regulatory Affairs: over two decades of
legal, energy and environmental experience at California utilities, state agencies and
environmental organizations; part of the Sonoma Clean Power Executive Management
launch team.
Nathanael Miksis, Director of Energy Procurement & Market Analysis: over a
decade of energy procurement experience including 3 years at PG &E; as Sonoma
Clean Power's Director of Energy Procurement, saved ratepayers over $30 million
dollars.
Shehzad wala, Associate Director of Energy Procurement: over a decade
of energy procurement experience including nearly a decade at PG &E; recently brought
Community Choice -like services (direct access) in -hie for the University of California
system.
Khyati Shah, VP of Marketing & Communications: over 15 years of communications
experience; including Apple and former senior communications manager at Solaraty.
2
_i!
Our Mission
California Clean Power empowers communities across
California to launch a local Community Choice power program
that brings guaranteed environmental and economic benefits to
their community's residents, schools and businesses.
u
!►t' -'• T,�a,r++„ .��y, _ _ we -.
v
V
r
R,
_ "Ye
w. ■fir. ;� s -��, -� �,.. -. -��. � ,.
Community Choice is...
source delivery customer
buys and builds delivers energy, choice, cleaner
cleaner energy repairs lines energy, local
supplies control and
competitive rates
Lower Rates - Support Your Community.
Residents, schools and businesses can collectively save millions on their annual energy bills.
Renewable Power - Influence California Energy.
You can choose to meet the 33% renewable standard 5 years ahead of schedule,
or move toward 100% renewable power.
New Revenue - Build Resilience in Your Community.
Invest in your key priorities, services, climate programs, economic development and infrastructure.
CLEAN POWER
4
Community Choice is...
Every Community's Right in California, and
a critical strategy in meeting State climate goals
*7T o : p
r ,L � r r
5
QuickStart -The Next Evolution
QuickStart is Fast, No Risk, No Cost
No Risk
QuickStart is performance based.
Your benefits are guaranteed, our
revenue isn't!
Guaranteed Benefits
We guarantee a fixed,
multi -year revenue stream, a mix
of renewables, and rates.
Local Control
You have complete control over the
combination of benefits and we will
help you manage them.
4
CLEANPOWER
I ::
r
n.
No Cost
You don't have to hire additional
staff or spend from your General
Fund, there is no cost to your city.
0
Be Operational within Months
You can have a fully operational
Community Choice in as little as 6 -8
months.
We Do it All
Power Procurement, Market
Analysis, Feasibility report,
Regulatory & Legal Matters,
Customer Service, Advocacy,
Public Awareness and more.
Your Community, Your Choice
Rates 3% below PG &E
50% Renewable Power
$11.8 million (10 year)
"q44
7_ighRenewable High Reve
Rates 0.5% below PG &E
75% Renewable Energy
$13.3 million (10 year)
7
Rates equal to PG &E
33% Renewable Power
$33.1 million (10 year)
QuickStart -Our Approach is Different
Emphasize the "Community" in Community Choice.
Your Each city has local control over their guaranteed mix of benefits:
Priorities
lower rates, more renewable options, new direct source of revenue.
Efficient Execution of YOUR Community Choice.
Our
'Expertis4 Cities can have their own program fully operational in 6 -8 months.
Communities don't have to invest in hiring new staff & multiple consultants.
No Risk
� pold
CLEANPOWER
Eliminate the Points of Risk for Local Government.
General fund, procurement, bond, market risk are all taken on by California
Clean Power. We are performance based, your benefits are guaranteed.
QuickStart -The Next Evolution
California Clean Power provides another option for communities,
an evolution from prior models
Public Model
• Uncertain Benefits
r Community 100% at Financial Risk
• Pre - Launch Costs in the Millions
• Reliance On Multiple Outside Vendors
• 3 to 10+ Years to Launch
• Joint Power Structures Limit Individual Communities
• Office Infrastructure, New Staff and New Appointed Seats
• Difficult to Attract Staff with Utility Industry Experience
CLEAN POWER
Public- Private Partnership: California Clean Power
• Guaranteed Benefits
• Private Investors 100% at Financial Risk
• California Clean Power Covers All Expenses
• All Core Functions Performed In House
• Launch Less Than A Year From Community Readiness
• Each Community Has Control, Regardless of Size
i 1/4 to 7/2 FTE Staff Time, Your Council governs
• Staffed by Experts In the Utility Industry
9
Mitigating Risk
California Clean Power addresses the most common challenges that cities
face when trying to launch Community Choice on their own:
TIME - Cities have Competing Priorities
r-� We manage the process from end -to -end and provide customer service to
your community. Cities don't have to hire extra staff,
0
CLEANPOWER
EXPERTISE - Legislative, Regulatory and Energy
Our team has deep experience in energy markets, legislative, regulatory
and communications field.
FINANCING - Benefits are Guaranteed
Our revenue is Performance Based. Yours is Guaranteed. Cities don't
have to spend anything from their general fund to launch or maintain
Community Choice operations.
10
Your QuickStart Energy Rate
California Clean Power guarantees your community an annual
Community Benefits revenue stream for 5 to 10 years. This can be used as General Fund
revenue for your city's specific needs: more clean power; lower electric
rates; environmental and energy programming, or towards serving critical
needs in your community.
Cost of Energy
Operating Costs
Performance -Based Revenue
California Clean Power manages the procurement of power for your
community. You can choose the amount and mix of renewable and carbon
free energy. We handle procurement of System Power, Renewable and
carbon free power; CAISO scheduling and imbalances; Credit and collateral.
California Clean Power provides all of the services for a successful
Community Choice program. Feasibility study, ordinance, implementation
plan, statement of intent, utility service agreement, bond payment, CPUC
certification and registration, community outreach, customer service (call
center, website, outreach), Presentations to your governing board,'
Compliance (noticing, emission performance standard, power content label,'
quarterly fuel and energy report, US Energy Information Administration
reporting), Regulatory (CPUC, CEC, CAISO, CARB), Environmental and
Energy program assistance.
California Clean Power is performance based. We make a profit only
after all of the guarantees to your community are met, and as we effectively
manage market risks and operational costs.
11
California Clean Power Execution Timeline
• Execute CCA Service Agreement
with IOU
• Letter of Credit/Collateral for IOU
Service Deposit
• File IOU Service Agreement &
Implementation Plan w /CPUC
• Deposit $100K bond w /CPUC
• Issue 60 -day
pre- notices
Service,
• Issue 60 -day
post- notices
• Pass Ordinance Month 1 Month 5 Month 7 Month 9
+ Approve Contract ._ ■ ■ ■ ■ ■ ■ ■■■■ ■ ■■■ ■■ ■ ■ ■ ■ ■ ■■
+Approve Implementation Plan &
Statement of Intent Month 2 Month 3 Month 4 Month 6 Month 8
�(AA
CLEANPOWER
• CPUC certifies Implementation Coordinate CCA customer Issue 30 -day Issue 30 -day
Plan & registers the CCA enrollment with IOU pre- notices post- notices
(could take up to 3 months)
12
r
���
wr•• ' i _
.p .' r .•.
yam,
�
s...Y
• `
_` e I
._.
r •
F
_
-
California Clean Power
PetW RLlmbke, CEO
70 �3 -9933
PrLImble@cacleanpow, er•com
ww. .cacleanpower•cb 'o-*,
QuickStart Community Choice Simplified
over BO9&ofconmunnors. have chosen their loca�Oomr-rurity Choice program as their preferred
electricity provider— because they can spend less for cleaner power and the savhngs are reinvested in their community.
Our unparalleled team is ready tro help your ccnimunity join the Community Choice movemeM . iUh our exclusive full-service
QuickStart solution. Let's get started today.
7 Peter Rumble,
'CeOfomia Clean Power
9`1'n
_
��
ME
No Cast, Risk Free
You don't have to spend a dime!
We are performance based. Your benefits
+ are guaranteed, our revenue isn't.
Community Support &
Customer Service
We are here for you!
We will raise public awareness and provide
customer service in your community.
Development & Operations
We manage the tough stuff!
We will manage utility relations,
power procurement, and
customer operations.
Legislative & Political Advocacy
We have your back!
Our team is unparalleled with a century of combined
policy and advocacy experience with energy and
environmental issues in California.
ri
'.*Tt'`
Community Choice Benefits Everyone
Community Choice is a proven, local program that provides communities with control over their energy,'Eind is a critical strategy
in meeting California's environmental mandates. As a result of California's„ energy crisis, the State gave the right and protection
to cities and counties to purchase power for their own communities. With Community Choice, cities and counties control their
mix of benefits which include:
Lower Electricity Rates
Residents, schools and businesses
can collectively save millions on their
annual energy bills.
New Direct Revenue Source
Communities can access new
revenue that can fund local programs
or provide critical services.
More Renewable Power
Communities can choose up to
100 % renewable power for their
energy needs.
li IN -l1 �
:pl {
■ice_ � �. ��,r`- �-= ;.�..�.� .
go � l !�
r
QuickStart The Next Evolution
" 4
QuickStart is California's first and only No Cost, Risk Free, Full- Service solution for Community Choice.
I QuickStart is your answer to launching a successful
i Community Choice program. Many communities in
California do not have the time, expertise or the funds
to make Community Choice a reality. We take the hassle
and cost out of planning and implementing a customized
Community Choice program for you. With QuickStart,
n
we can launch a Community Choice program in as little
as 6 -8 months. We enable cities and counties across
California to take control and choose the combination
of benefits that best suit the growing energy needs of
your residents, schools and businesses. QuickStart is
Community Choice Simplified.
California Clean Power accelerates our state's push to decrease greenhouse
gas emissions by dramatically shortening the time frame that any city or
county needs to establish their own Community Choice energy program. .RY
-Ann Hancock, Executive Director and Co- Founder, Center for Climate Protection
J
ei
savings to your
community and get years ahead of the ambitious 50% renewable energy goal, announced by California Governor Jerry Brown.
N