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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