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tv   [untitled]    April 26, 2015 7:00am-7:31am PDT

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program. >> so i'd like to now dive into what the proposed legislative proposal is by the way of background you know the board of supervisors currently has rules that require the puc to bring any contract that exceed 10 years in duration or or a $10 million in total costs for approval we have historically received deliberations of that limit contracting for energy applies that happened in the 1990s with the board adapted an ordinance that allows the puc to use one of the standards form contracts it is referred to as the western systems power contract to
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purchase from the power market and sell to the power market for durations up to one year that authority was extended to duration up to 5 years what we're seeking in the new legislative reform is authority to use that same feed of contract for up to 20 years we're also asking for up to 10 years for standard products in the market for purposes using not only the western standard form contract but also the he had son electric form contract over the years the additional form contracts are used rigorously in the market we're seung that authority for longer direct your attention and more than one standard form contract
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with those proposals we'll not be seeking to apply those new terms to projects that are developed on city owned property we expect to the extent for example, solar on the revolver of university mound or solar other city property we expect the city provisions contracts to apply we are targeting as i said the introduction of the legislation for april 21st next tuesday. >> i'll be happy to answer any questions i'm pausing that another point to see if you have questions i'm going to move on to the actual product improvements are. >> i have a question the electric industry standard contract would that be to purchase dirty power too. >> what we're proposing that's
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a good question for durations up to 10 years let me back up we currently have durations up to 5 years we're asking for that to be extended for a total of 10 for any type of power products we need we are also asking for delegated authority to contract for 20-year terms and that setting only for renewable and green house gas emission. >> why an expedition. >> not only for the non renewal or green house products but you're absolutely right we'll be able to make those purposes we are going to need to firm and shape the power we purchase and so we're going to need to have the flexibility to purchase non-
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non-weather did not eights non-you know non-renewal. >> that's part of reality. >> system power it also the other aspect of that is you know as california's policy is rachel up on the renewables there are now higher renewable content in the power purchase not everything that is contracting for power when their contracting for renewables are using all the electricity all the time so some of the electrical power, if you will spills into the general system market if you look at the california power what's in the system power were anticipating a increase over time and the renewable contract in the system power purpose.
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>> it will be getting confusing what kind of a power your buying. >> they don't specify the unit they're coming from. >> right. >> >> can't claim it's renewable but the california energy commission tracks the consent of even system power purposes you're seeing the purposes are getting greener over time any other questions on the legislature reform. >> thank you for the update and thank you. the r5e89s of implementation cause in between those points but as long as the key milestones are met or slippage in the times i want to thank you for that. >> thank you so moving to the target product offer
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as mr. carolyn alluded to we'll have two product oefgsz a default of basic priority offering a a premium product offering for the basic default prominent psz the product that quotes where pg&e product that is available to san francisco businesses and resident we're going to offer a supply that is greener than pg&e at a compatible price we are toorlth 32 to 50 percent 3wu78d you know california renewable portfolio standard power we're expecting during the initial period of the program our power will primarily be too renewable resources that are
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already selling power into the grid we hope that over time we will be able to contract for new you know either owned or purchased renewable generation that will come into market we're bringing new demands to the market our premium product the product that customers can say i want to be in your program and opt up to a greener product we're proposing to offer one hundred percent green house gas supply and use the revenues to help our local build power contents of the target we're 25rg9 at the beginning of the program will again be
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bundled in state rp s eligible resources so the power content here about not include your honor, bundled renewable energy perks once it is launched we're able to build new resources to serve the premium product in the end so meantime awhile we're developing the revenue stream and the track record to incorporate local and renewable; correct construction we're developing programs that induce the local construction of renewables and see at launch we will have a night energy program we'll have those present to encourage new san francisco solar customers to participate
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in our cca program we're developing a feed in terrace program that is where we'll have local generation under contract to us given those legislative reformed i've talked about under contract to sell the out put of the system and and use go solar and use those on city owned properties as we develop the financial track record our overall we expect to have an annual procurement process where we'll have the standardized procurement that marketplace will get use to us purposing for renewable electrical they'll accept that
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that will encourage further development responsive to our customers needs we'll also be providing energy efficiency in our response program relying on existing programs the energy watch and bay render that the department uses and the funded programs through pg&e we intended to begin working closely with the department of investment to develop pilot energy efficiency and programs to evaluate those pilots for continuing funding through the ratepayer fund that the california commission offenders and make choices like ours
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offers we're proposing to provide services to san francisco customers and businesses in this early period so it had been a mix of retain and commercial customers we're starting the program with thirty megawatts that is thirty megawatts of average 40 megawatts peak the idea to start small and work out the kingdz and minimize our risk at the early launch period we'll phase in load unanimously as i mentioned in conjunction with the annual supply procurement process and our build out levels will be extinct on the market conditions that's who we're serve let's talk about who we're targeting at the rates if you're ready to move on so again leading with
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affordability and maximizing participation in the program we're proposing to go to the rated fairness board on friday with rates for our default product that are based on on the current pg&e rates for their products and proposing to set premium rates this is the premium product rates based on what they are projecting pg&e's green tariff opposite p will be priced at and going forward our recites will cover our costs our program costs and we'll be seeking limit option from the fairness board to modify the rates much like we have with our 5 year rate plan for the water and wastewater and our rates for the municipal power rate we have flexibility over a nuke of years to modify the rate without going
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back to the fairness recite board we're proposing that for the cca program the supply prices allow us to stay within the raised not to exceed rates the target rates our next step to bring the supply contract forward for our approval and present the final rates to the board if the rates stays within the affordability metrics with the pg&e rates for the pg&e offering. >> i have a question in terms of rates we have a desire to bait pg&e of it's by a penny. >> we have that desire and the proof it in the pudding when we see the requests for the proposals and if we have the ability to have the rates below you know not just above the noifd by below the penguin rates
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we'll present that. >> i know there's a lot of moving parts to this and make that better because - >> yes, thank you. >> part of the sha bank. >> the repair sha bank. >> so i sort of reviewed the overall objectives how the math workouts a rate of 6 point 8 cents and the premium product 10 point 7 cents for a kilowatt, however, 10 point 7 cents for a renewable product we are factoring in as we look at those rates fish taco in the rate that pg&e will past the power charge and adjustment fee into their
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customers we're assuming we will eat that in order to meet that affordability to meet that target price and so we're going to need to be that much better anothers penguin as procuring resources for the customer base and so at those rates given the megawatt size what's that what are we expect to see overall we're expect for a thirty megawatt program at the supply prices we are projecting a at the rate we're projecting a revenue stream over the course of a year $23 million for the thirty megawatt size as we look at the split between
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uptake between the default and premium product at the top the split between you know if we have zero participation at the extreme left zero participation in the premium product all the revenue is associated with that sale of that default product around $23 million if as we slide to the right on the top chart greater participation in the premium product that means greater participation at the higher price as you can see the overall grow revenues climb up a bit when you take those gross revenues and look at it what they are on net this is what you're seeing on the bottom slide you're seeing at zero participation in the premium product full participation only
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in our standard product about $200,000 a year of net revenues we'll be able to invest in local construction or in rate stabilization efforts or other you know policy objectives but as the participation in the green product the darker green product grows the net revenues grow that is close to the one million dollars a with thirty megawatts of sales we expect the program to grow so that thirty megawatts to grow over to serving all available san francisco residential and commercial load so what do you mean right now pg&e serves 8 hundred megawatts in san francisco and we serve
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thirty with our municipal program so you imagine that thirty megawatts growing it could be quite a large opportunity to implement the policy goals and objectives that have been articulated imply the city for the last ten years in trying to launch this program starting small allows us to get our house in order and make sure we have the program any of or administrative program and begin to add load could we add load more quickly than an, an annual basis potentially but i want to make sure that the program stable lids at each incorporation of new load before we add more so the thirty megawatts will be given to communicate the opt out opportunities to the thirty meg
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wallets of load at the end of this calendaring year into the spring of 2016 they will still have opportunity to opt out of the program we want that thirty megawatts to hit a steady stage before we add nor load to the program it could be a 8 hundred megawatt program i'll be happy to answer any questions you may have. >> thank you i know that a lot of hard work has gone into this i have a couple of questions first on the numbers. >> yes. >> so that the 50 percent i guess the third observation from the 50 percent number it seem like there a availability in the renewable in the priority if we are that going out today to
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purchase is it might be more expensive than in 6 months that's an opportunity at some point to make a decision whether or not it leads to reduced rates increased customers or we then take the savings, if you will that center money into local bills; right? i mean, that's the design today. >> so today's design assumes any load this is contributed they'll will be margin to contribute to the rates but on the default product prides are really low and the supply costs effective we could go 50 percent renewal for that product or even higher in the commission deserves to do that but your pointing out we could stay at 50 have additional contributions to
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march because of the supplies are lower and take that margin and invest it in local build or rate stabilization or other policy objectives of the program. >> and it is on the reverse we talked about the rosy picture what if supply costs radio larger that's example wear asking for the authority to build it at 32 or 50 percent if the prices are hire and the program is costing more we want to slide down the scale to meet the affordability target. >> that includes the pg&e fee absorption would be in there as well. >> that's all the numbers i'm showing you factor that in and they assume we're packing the
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hetch hetchy back for the cost that we have incurred to establish the program. >> the operations; right? >> right. >> and on the ongoing operations. >> right >> one more question on the department of the investment efficiency work how does that get paid for . >> the initial program launched with the energy bay program those are funded with the pg&e recite parades make the contribution the california puc decides who gets that pg&e or local governments and the bay energy watch programs are fund. >> fund by the public goods. >> right but paying a pg&e bill. >> that's how there's no
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conceptual legal itself for the scc a. >> tha there are you have to be a cca customer and under the cca program penguin continues to provide the distribution services and the meeting services all those services that pg&e is providing to their base customers today will continue to be provided by pencil and paid for by those recite payers the one that his they'll not be paying for and per diem is not providing is the supply that's the piece we're proposing to provide. >> if we move towards the build out is there a possibility we'll ever dwell on the distribution i mean there will be complaktsdz. >> there's always a possibility
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if we're doing our own distributions it no longer a cca program. >> that's an i o u throughout the state. >> yes. the state of california they adopted the law for the program said to the utilities you must at that particular time this program and must provide the distribution meeting and billing serviced and work with the local jurisdiction to bill the consumers and allow them to provide the supply that's the foundational contract. >> and that public good feeds is not going to sunset any time. >> it comes up for renewal occasionally not terminate yet for the electrical customers. >> okay. thank you. >> you're welcome. >> a couple of questions thank you slide 8 you make reference to
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the energy meeting and terrace does that require a law change. >> that didn't require a law change, in fact, the programs the net energy metering and the feed and transfer programs are required for all the serving entities we'll be bringing the net energy and metering tariff program for the offensive as well not just four cca but for the program oefdz. >> did pg&e have to provide that. >> yes. yes you'll of the serving combritsz in california whether privately owned or cca. >> and in our slide 11 you talk about setting the premium rate based on the green tariff premium. >> uh-huh.
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>> there's just an observation that the ground floor tariff program has some deficiencies and not as green as some would like so, i say offer it that if there's an opportunity to do something that is markedly better. >> uh-huh. >> and couldn't limit our horizon to 3 tariff there is, of course there's a market issue i want to make sure this is not cast in stone my last question on your last chart you showed the net revenues not going up what drives this it happens to be at the same time our increasing our dark green offering is that what drives the net or - >> no what's driving the net is the participation in the program
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choice to be in the opt up in the premium program you'll be looking at on the extreme left on the net revenue slide no one is participating zero participating in the premium product and at the extreme right thirty percent of the consumers are participating that's why the net is higher. >> i'll suggest so for the basically programs your net is zero and for the premium program there are a net revenue on the directorer green. >> yes. at zero is $200,000 right. >> thank you so that also points out there are a narrow margin for the basic product offering for the default offering. >> i have 3 questions. >> we can start with the slide 13 we're on it right now.
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the whole concept of the dark green is that based on lower costs that people would opt into it >> for the dark green product it would be comparably priced to pg&e product. >> have we've seen evidence in the other program that people are increasing their dark green. >> so there are - there is participation in sonoma and other cca in their dark green offering in the participation is at thirty percent levels no and their community it is not yet. >> so their showing no-growth they're switching. >> i did not mean to say that in marin situations they have 10
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percent of their customers are in the darker green product so their overall the customers want to be in the more expensive greener program. >> people having not been switching into darker green. >> i don't know if i can answer adequately that question marin has had so much growth in their program they're offering services to the city of inconvenient irrational so there's quite a bit movement and opportunity for customers to continue to select into the darker green program. >> the reason i'm asking the question it was mined we're offering both programs at the beginning because if people choose to go to the dark green they'll probably stay there if you don't
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offer that people go into you call the light green and never switch into the carbon green i'm why i'm asking more people president obama for the dark green. >> i'm showing mathematically what the share of right side at various levels of participation in the dark green from zero to thirty percent i'm not saying we'll got to thirty percent but the rate of range from the different scenarios. >> not years. >> no not years percentages of participation. >> i'm sorry if i wasn't clear on that. >> and one of the things we've discussed i don't know if it is changed there would be phased in marketing and enrollment. >> i've. >>