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Exhibit CC 12-01-2015 Item No. 19 Community Choice Aggregation ProgramCommunity Meeting Winter 2015|1 City Council Meeting December 1, 2015 Community Meeting Winter 2015|2 Recommended Actions •Accept the Technical Study •Conduct first reading of Ordinance Authorizing the Implementation of a Community Choice Aggregation Program to create and participate in the Silicon Valley Clean Energy Authority (SVCEA) •Adopt Resolution Approving JPA Establishing SVCEA •Authorize CM to remit $450,000 as previously budgeted to SVCEA •Approve $100,000 increase for SVCEA contingency •Direct staff return with: update and action regarding bridge financing; proposal for a services agreement; and appointment to Board of Directors Community Meeting Winter 2015|3 Agenda •Introduction to CCE •Partnership Overview •Community Engagement •Technical Study Preliminary Findings •Timeline & Next Steps Silicon Valley Clean Energy Authority Financing & Costs Community Meeting Winter 2015|4 Introduction to Community Choice Energy (CCE) Community Meeting Winter 2015|5 What is Community Choice Energy? •Customers automatically enrolled into CCE program •Customers can “opt-out” to stay with PG&E for bundled service •Customers receive at least 4 notices (2 pre-and 2 post-enrollment) Community Meeting Winter 2015|6 Community Meeting Winter 2015|7 Proven Model in Current Programs •Green power; more renewables •Competitive rates –currently lower •Enhanced local energy programs •Financially sound 27 36 100 0% 50% 100% PG&E CleanStart EverGreen Unspecified Nuclear Natural Gas Large Hydro Renewable 8 24 21 21 20 44 Electric Power Generation Mix*PG&E –Sonoma Clean Power Comparison Community Meeting Winter 2015|8 Silicon Valley Community Choice Energy Partnership (SVCCEP) Overview Community Meeting Winter 2015|9 Introducing SVCCEP -Silicon Valley Community Choice Energy Partnership Sponsoring Agencies Sunnyvale | Cupertino | Mountain View | Santa Clara County Also Participating Campbell | Gilroy | Los Altos | Los Altos HillsMonte Sereno | Morgan Hill | Saratoga| Los Gatos Community Meeting Winter 2015|10 Why are we considering this? •Communities adopting Climate Action Plans for Greenhouse Gas Reduction •Transportation and Electricity Consumption are largest community contributors of GHG •Transforming Electricity Sourcing is essential to reaching goals Community Meeting Winter 2015|11 SVCCEP Priority Goals •Offer renewable energy supply options that exceed the renewable content offered by current utility, PG&E. •Reduce GHG emissions to support local climate action goals. •Provide competitive, potentially lower, electricity rates for all customers. •Facilitate the use of clean technology, local clean power, and other energy innovations. •Create and maintain a local public agency that is well managed and financially sustainable. Community Meeting Winter 2015|12 Community Engagement Community Meeting Winter 2015|13 Community Engagement •Community Meetings Round 1 (6 meetings) complete Round 2 in December/January •Targeted Stakeholder Forum November 17th in Sunnyvale •Business Engagement Webinar November 4th Business Forum Meeting –December Business Groups, Chambers •Grows in next phase •Customer Noticing 60 days before service Community Meeting Winter 2015|14 Round 1: Polling Results Community Meeting Winter 2015|15 www.SVCleanEnergy.org Community Meeting Winter 2015|16 Overview of Progress/ Technical Study Key Findings Community Meeting Winter 2015|17 SVCCEP Milestones and Timeline We are Here Phase 1 Phase 2 Phase 3 INITIAL STUDY TECHNICAL FEASIBILITY CCE PROGRAMDEVELOPMENT CCE LAUNCH ID potential agency partners ID opportunities, costs, and risks Investigate other CCEs Inform community and gather feedback Framework for next steps ID partners & funding Technical Study: load and rate analysis, economics, supply options, environmental outcomes Community outreach & input JPA Formation Enabling Ordinance Energy Svcs Pricing and Procurement Expand Outreach Implementation Plan to CPUC Agmt with PG&E Bridge financing to revenue Staffing and Org setup Energy and other Service Contracts Customer notifications and service Conservation & Renewables programming Fall 2015Technical Study Completed Winter 2015-16Communities Decide JPA Spring 2016Implementation Plan to CPUC Winter 2016-17Program Launch! Summer 2016Ramp-up Operations and Communications Completed July 2015 Community Meeting Winter 2015|18 Assessment Report LEAN Energy US, May 2015 Key Findings •Good potential to meet climate action goals •Timing is good •Existing CCE programs are performing well •Anticipated rate savings in the near term •Risks exist but can be mitigated Community Meeting Winter 2015|19 Technical Study -Scenarios •Additional Assumptions for All Scenarios: Scenario 1 No GHG Redux:Match PG&E GHG, Exceed PG&E RE MAXIMIZE$ Savings Scenario 2 Reduce GHG 20%Exceed RPS RE51% (Yr 1), 66% (Yr 10) $ Savings Scenario 3 MAXIMIZERE/GHG-Free No $ Savings:Match PG&E $ 2% Opt-Up (100% RE) Local Energy Program $ (Net Metering, Feed-in-Tariff) No Unbundled RECs No Nuclear, No Coal 85% Participation Community Meeting Winter 2015|20 Customer Classification Customer Accounts Customer Accounts (%of Total)Energy Use (MWh)Share of Energy Use (%) Residential 218,049 90%1,336,200 34% Small Commercial 19,120 8%423,180 11% Medium Commercial 2,527 1%569,501 14% Large Commercial 1,166 <1%780,723 20% Industrial 43 <1%771,462 19% Ag and Pumping 944 <1%62,238 2% Street Lighting 1,588 1%20,619 1% TOTAL 243,440 100.0%3,971,985 100% Peak Demand (MW)660 (July) Bundled Energy Use by Customer Classification SVCCE Load Summary Community Meeting Winter 2015|21 Composition by Jurisdiction Top five jurisdictions account for almost 76% of total SVCCE electric consumption and 68% of total SVCCE customer accounts Community Meeting Winter 2015|22 Tech Study Findings & Conclusions •No “correct” answer, but in general terms, the technical study indicates that the SVCCE program could be economically viable while also achieving the Partners’ environmental objectives Scenario 1 Yr. 1: 36% RE63% GHG-free 4% cost savings Yr. 10: 49%RE 75% GHG-free3% cost savings Scenario 2 Yr. 1: 51% RE, 70% GHG-Free 20% GHG savings3% cost savings Yr.10: 66% RE 80% GHG-Free 20% GHG savings 1% cost savings Scenario 3 Yr. 1: 76% RE85% GHG-Free 60% GHG savings 1% cost savings Yr.10: 76% RE 97% GHG-Free 86% GHG savings Rate Parity Rate Competitive No GHG Impacts Rate Competitive w/RE & Carbon- Free Content Rate Parity w/ Environmental Benefits Community Meeting Winter 2015|23 Risks Exist But Can Be Mitigated 23 Risks related to CCE Financial Risk Competitive and Pricing Risk/ Opt-Out Rates Market Exposure Regulatory Risk Political Risk Assessment Report analyzes these risks and outlines potential risk-mitigation measures Effect on Business Probability of Event Community Meeting Winter 2015|24 Timeline & Next Steps Community Meeting Winter 2015|25 Parallel Tracks Technical Study & Program Development Stakeholder Engagement Agency Agreement & Preparation Community Meeting Winter 2015|26 The Path Ahead Community Meeting Winter 2015|27 Partner Decision Making •Council/Board Action -Adopt CCE Ordinance (with 2nd reading) -Resolution to Join JPA; approve final agreement -Approve Cost-sharing Contribution •Target –Action by March 31, 2016 -Council/Board preparatory info by December 9, 2015 -Sponsoring Agencies targeting action by January 31, 2016 -First JPA meeting in April 2016 Community Meeting Winter 2015|28 Partner Decision Making: Fiscal Impact Cost Item Amount Internal Staff $730,000 Technical Consulting and Legal Services $620,000 Marketing and Communications $280,000 Customer Noticing and Mailers $120,000 Security Deposits $40,000 Miscellaneous Administrative and General $95,000 CCE Bond $100,000 Debt Service $720,000 Other Pre-launch Activities $180,000 Total $2,885,000 Community Meeting Winter 2015|29 Partner Decision Making: Fiscal Impact Party Phase 1(*)Phase 2 and 3 (**)Phase 2 & 3 w/Contingency (***) Campbell --$100,000 $150,000 Cupertino $170,000 $350,000 $450,000 Gilroy --$100,000 $150,000 Los Altos --$100,000 $150,000 Los Altos Hills --$25,000 $25,000 Los Gatos --$100,000 $150,000 Monte Sereno --$25,000 $25,000 Morgan Hill --$100,000 $150,000 Mountain View $170,000 $350,000 $450,000 Santa Clara County (Unincorporated)$170,000 $350,000 $450,000 Saratoga --$100,000 $150,000 Sunnyvale $170,000 $350,000 $450,000 Total $680,000 $2,050,000 N/A Community Meeting Winter 2015|30 Next Steps Date/ Time Agency Tuesday, 12/1/15 Cupertino City Council Tuesday,12/15/15 Sunnyvale City Council Thursday, 12/16/15 Morgan Hill City Council Tuesday, 1/12/16 County Board of Supervisors (Study Session) Tuesday, 1/12/16 Mountain View City Council Tuesday, 1/19/16 Los Gatos Council Wednesday, 1/20/16 Gilroy City Council Wednesday, 1/20/16 Saratoga City Council Tuesday, 2/23/16 Los Altos City Council Tuesday,3/1/16 Campbell City Council Partner Decision Making Schedule Photo Credit: http://acesolarstore.com/wp-content/uploads/2015/07/SolarHoller6415.jpg Community Meeting Winter 2015|31 Thank you. SILICON VALLEY COMMUNITY CHOICE ENERGY FINANCIAL PRO FORMA ANALYSIS SCENARIO I CATEGORY YEAR I YEAR 2 YEAR 3 YEAR 4 YEARS YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 I. CUSTOMER ACCOUNTS, RESIDENTIAL (E-1) 61,781 124,179 187,200 188,136 189,076 190,022 190,972 191,927 192,886 193,8SI SMALL COMMERCIAL (A-I) S,08S 10,221 IS,409 I S,486 I S,S63 IS,641 IS,719 IS,798 IS,877 IS,9S6 SMALL COMMERCIAL (A-6) 332 667 1,006 1,011 1,016 1,021 1,026 1,032 1,037 1,042 MEDIUM COMMERCIAL (A-1 0) 716 1,439 2,169 2,1 80 2,191 2,202 2,213 2,224 2,23S 2,247 LARGE COMMERCIAL (E-19) 331 66S 1,002 1,007 1,012 1,017 1,022 1,027 1,032 1,037 INDUSTRIAL (E-20) 12 24 37 37 37 37 38 38 38 38 STREET LIGHTING AND TRAFFIC CONTROL (LS-3) 4S2 908 1,369 1,376 1,383 1,390 1,397 1,404 1,411 1,418 AGRICULTURAL (AG-I B, AG-4A, AG-4B, AG-SA, AG-SB, AG-SC) 267 S38 810 814 819 823 827 831 83S 839 SUB TOT Al · CUSTOMER ACCOUNTS 68,976 138,642 209,003 210,048 211,098 212,1 S3 213,214 2 14,280 21 S,3S2 216,428 II. LOAD REQUIREMENTS (KWH), RESIDENTIAL (E-1) 379,302,23S 762,397,493 1,149,314,221 I, I SS,060,792 I, 160,836,096 I, 166,640,276 I, 172,473,478 I, I 78,33S,84S I, I 84,227,S24 I, 190, 148,662 SMALL COMMERCIAL (A-1) 103,830,97S 208,700,2S9 314,61S,641 316, 188,7 19 317,769,663 319,3S8,S 11 320,9SS,304 322,S60,080 324, 172,881 32S,793,74S SMALL COMMERCIAL (A-6) IS,S89,202 3 I ,334,29S 47,236,4SO 47,472,633 47,709,996 47,948,S46 48, 188,289 48,429,230 48,671,376 48,914,733 MEDIUM COMMERCIAL (A-I 0) 161,290,281 324, 193,466 488,721,6SO 491, I 6S,2S8 493,621,084 496,089, 190 498,S69,636 SOl,062,484 S03,S67,796 S06,08S,63S LARGE COMMERCIAL (E-19) 226, I S7,4S3 4S4,S76,480 68S,274,044 688,700,414 692, 143,916 69S,604,636 699,082,6S9 702,S78,072 706,090,963 709,621,418 INDUSTRIAL (E-20) 213,906,622 429,9S2,3 I 0 648, I S3, I 07 6S 1,393,872 6S4,6S0,84 I 6S7,924,096 661,213,716 664,S 19,78S 667,842,384 671,1 81,S96 STREET LIGHTING AND TRAFFIC CONTROL (LS-3) S,830,063 11,718,427 17,66S,S29 I 7,7S3,8S7 17,842,626 17,931,839 18,021,498 18,1 11,606 18,202, 164 18,293, 17S AGRICULTURAL (AG-I B, AG-4A, AG-4B, AG-SA, AG-SB, AG-SC) 18,032,203 36,244,729 S4,638,929 S4,912, 124 SS, 186,684 SS,462,618 SS,739,931 S6,0l 8,630 S6,298,723 S6,S80,217 SUB TOT Al -LOAD REQUIREMENTS I, I 23,939,03S 2,2S9,l 17,460 3,40S,619,S71 3,422,647,669 3,439,760,907 3,4S6,9S9,71 l 3,474,244,SIO 3,491,61 S,733 3,S09,073,8 I l 3,S26,6I9,180 Ill. CCA OPERATING COSTS($) SHORT TERM MARKET PURCHASES $S,041,0l 3 $10,132,991 $14,681,238 $14,891, 117 $I S,310,728 $1 S,848,723 $16,237,063 $16,791,1S7 $17,023,403 $17,414,879 TERM CONTRACT PURCHASES $ l 2,703,3S2 $61,S38,738 $90,S98,28S $120,270,043 $I 22,099,08S $124,231,022 $142,640,040 $143,68S,314 $I S0,230,703 $1 S0,904,67S SHORT TERM RENEWABLE MARKET PURCHASES AND RECS $24,96S,932 $23,699, 137 $34,63S,089 $16,80S,807 $21,442, 193 $26,684,873 $16,084,761 $23,234,929 $24,S03,443 $31,730,964 SHORT TERM CARBON FREE MARKET PURCHASES $13,777,449 $31,6 18,914 $S3,S29, I S6 $S8, I 23,04S $S9,786,S8 I $61,774,017 $63,729, 119 $6S,S08,62 I $6S,9S7,309 $66,808,386 ANCILLARY SERVICES AND CAISO CHARGES $3,40S,692 $7,07S,827 $I 0,997,94S $I I ,428,S79 $I I ,866,79S $12,334,026 $12,821,7 1S s 13,326,878 $13,812,781 $I 4,33S,SS8 RESOURCE ADEQUACY CAPACITY $S,S70,842 $9,270,S4S $13,329,099 $ l 3,009,33S $13,391,766 $13,788,938 $13,812,9S3 $14,402, 178 $14,74S,4SS $I S,381,372 STAFF AND OTHER OPERATIONS COSTS $7, 169,346 $8,Sl7,394 $9,928,7S2 $10, 146, 128 $10,368,322 $10,S9S,44S $10,827,606 $11,064,9 18 $1 1,307,498 $11,SSS,463 BILLING AND DATA MANAGEMENT $1,622,317 $3,3S8,684 $S,21s,11 2 $S,398,424 $S,S88, 178 $S,784,603 $S,987,931 $6, 198,407 $6,416,281 $6,641,814 UNCOLLECTIBLES EXPENSE $384,S99 $789,381 $1, 177,893 $1,263,682 $1,312,S88 $1,3SS,208 $1,410,706 $1,471,062 $1,SI 9,984 $1,S73,866 STARTUP FINANCING $2,663,926 $2,663,926 $2,663,926 $2,663,926 $2,663,926 $0 $0 $0 $0 $0 CCA BOND CARRYING COST $1,SOO $1,SOO $1,SOO $1,SOO $1,SOO $1,SOO $1,SOO $1,SOO $1,SOO $1,SOO SUBTOTAL· CCA OPERATING COSTS $77,30S,968 $I S8,667,037 $236,7S7,99S $2S4,001,S84 $263,831,662 $272,398,3SS $283,SS3,394 $29S,684,964 $30S,SI 8,3S8 $316,348,477 IV. REVENUES FROM GREEN PREMIUM AND MARKET SALES ($) GREEN PRICING PREMIUM 271,812 S62,733 873,770 886,393 890,614 894,036 896,S99 898,237 898,882 898,463 MARKET SALES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 v. CONTRIBUTION TO PROGRAM RESERVES($) $3,092,239 $6,346,681 $9,470,320 $10, 160,063 $10,SS3,266 $10,89S,934 $11,342,136 $11,827,399 $12,220,734 $I 2,6S3,939 VI. CCA REVENUE REQUIREMENT ($) $80, 126,394 $I 64,4S0,98S $24S,3S4,S4S $263,27S,2SS $273,494,314 $282,400,2S4 $293,998,932 $306,614, 126 $316,840,210 $328, I 03,9S3 CCA PROGRAM AVERAGE RATE (CENTS/KWH) 7.1 7.3 7.2 7.7 8.0 8.2 8.S 8.8 9.0 9.3 PG&E AVERAGE GENERATION COST (CENTS/KWH) 9.6 9.7 10.1 10.S 10.7 10.9 11.3 11.6 11.9 12.3 VII. PG&E CCA CUSTOMER SURCHARGES ($) POWER CHARGE INDIFFERENCE ADJUSTMENT $17,176,S39 $34,339,2S9 $S7,624,201 $S9,979,S92 $68,846,649 $71,301,137 $73,39S,868 $72,904,287 $76,084,978 $7S,601,919 FRANCHISE FEE SURCHARGE $807,311 $1,64S,16S $2,S66,976 $2,677,997 $2,76S,271 $2,826,86S $2,939,449 $3,028,912 $3, 132,039 $3,233,921 SUBTOTAL -PG&E CCA CUSTOMER SURCHARGES I 7,983,8SI $ 3S,984,424 $ 60,191,178 $ 62,6S7,S88 $ 71,611,920 $ 74, 128,002 $ 76,33S,317 $ 7S,933,200 $ 79,217,017 $ 78,83S,840 VIII. CCA REVENUE REQUIREMENT PLUS PG&E CCA CUSTOMER SURCHARGES $98, 110,24S $200,43S,409 $30S,S4S,722 $32S,932,843 $34S, I 06,23S $3S6,S28,2SS $370,334,248 $382,S47,326 $396,0S7,227 $406,939,792 IX. REVENUE AT PG&E GENERATION RATES $I 07,931,990 $219,947,272 $343, 187, 142 $3S8,029,788 $369,697,818 $377,932,408 $392,984,207 $404,944,826 $418,732, 178 $432,3S3,066 X. TOTAL CHANGE IN CUSTOMER ELECTRIC CHARGES OR SURPLUS (9,821,745) (19,511,863) (37,641,419) (32,096,944) (24,591,584) (21,404, 153) (22,649,959) (22,397,500) (22,674,951) (25,413,274) CHANGE IN CUSTOMER ELECTRIC CHARGES OR SURPLUS (%) -4% -4% -5% -4% -3% .. Jo/o -3% -3% -3% -3% CC 12-01-15 Item #19 Attachment A: Technical Study Draft Report, Appendix A: SVCCE Pro Forma Analyses (pg. 83) SILICON VALLEY COMMUNITY CHOICE ENERGY FINANCIAL PROFORMA ANALYSIS SCENARIO 2 CATEGORY YEAR l YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 CUSTOMER ACCOUNTS, RESIDENTIAL (E-1) 61,781 124,179 187,200 188, 136 189,076 190,022 190,972 191,927 192,886 193,851 SMALL COMMERCIAL (A-1 ) 5,085 10,221 15,409 15,486 15,563 15,641 15,719 15,798 15,877 15,956 SMALL COMMERCIAL (A-6) 332 667 1,006 1,011 1,016 1,021 1,026 1,032 1,037 1,042 MEDIUM COMMERCIAL (A-1 0) 716 1,439 2,169 2,180 2,191 2,202 2,213 2,224 2,235 2,247 LARGE COMMERCIAL (E-19) 331 665 1,002 1,007 1,012 1,017 1,022 1,027 1,032 1,037 INDUSTRIAL (E-20) 12 24 37 37 37 37 38 38 38 38 STREET LIGHTING AND TRAFFIC CONTROL (LS-3) 452 908 1,369 1,376 1,383 1,390 1,397 1,404 1,411 1,418 AGRICULTURAL (AG-18, AG-4A, AG-48, AG-5A, AG-5B, AG-5C) 267 538 810 814 819 823 827 831 835 839 SUBTOT Al -CUSTOMER ACCOUNTS 68,976 138,642 209,003 210,048 211,098 212,153 213,214 214,280 215,352 216,428 II. LOAD REQUIREMENTS (KWH), RESIDENTIAL (E-1) 379,302,235 762,397,493 1,149,314,221 1, 155,060,792 l, 160,836,096 l, 166,640,276 1, 172,473,478 1, 178,335,845 l, 184,227,524 l, 190, 148,662 SMALL COMMERCIAL (A-1) 103,830,975 208,700,259 314,615,641 316,188,719 317,769,663 319,358,511 320,955,304 322,560,080 324, 172,881 325,793,7 45 SMALL COMMERCIAL (A-6) 15,589,202 31,334,295 47,236,450 47,472,633 47,709,996 47,948,546 48, 188,289 48,429,230 48,671,376 48,914,733 MEDIUM COMMERCIAL (A-1 0) 161,290,281 324, 193,466 488,721,650 491,165,258 493,621,084 496,089, 190 498,569,636 501,062,484 503,567,796 506,085,635 LARGE COMMERCIAL (E-19) 226, 157,453 454,576,480 685,274,044 688,700,414 692,143,916 695,604,636 699,082,659 702,578,072 706,090,963 709,621,418 INDUSTRIAL (E-20) 213,906,622 429,952,310 648, 1 53, 1 07 651,393,872 654,650,841 657,924,096 661,213,716 664,519,785 667,842,384 671,181,596 STREET LIGHTING AND TRAFFIC CONTROL (LS-3) 5,830,063 11,718,427 17,665,529 17,753,857 17,842,626 17,931,839 18,021,498 18,111,606 18,202, 164 18,293,175 AGRICULTURAL (AG-lB, AG-4A, AG-48, AG-5A, AG-58, AG-5C) 18,032,203 36,244,729 54,638,929 54,912, 124 55, l B6,684 55,462,618 55,739,931 56,018,630 56,298,723 56,580,217 SUBTOT Al -LOAD REQUIREMENTS l, 123,939,035 2,259, 117,460 3,405,619,571 3,422,647,669 3,439,760,907 3,456,959,711 3,474,244,510 3,491,615,733 3,509,073,811 3,526,619, 180 Ill. CCA OPERATING COSTS($) SHORT TERM MARKET PURCHASES $4,059,363 $8, 161,906 $11,803,457 $11,999,206 $12,339, 124 $12,774,593 $13,055,640 $13,504,281 $13,694,329 $14,012,698 TERM CONTRACT PURCHASES $10,229,594 $56,571,604 $83,346,275 $112,982,427 $114,610,645 $116,484,213 $134,622,855 $135,402,388 $141,841,435 $142,331,178 SHORT TERM RENEWABLE MARKET PURCHASES AND RECS $35,076, l 03 $45,044,757 $67,963,379 $48,982,201 $56,858,919 $65,786,260 $59, 197,404 $70,642,350 $75,808,294 $87,544, l 05 SHORT TERM CARBON FREE MARKET PURCHASES $10,013,757 $23, 149,763 $39,463, 112 $44,779,872 $44, l 05,738 $43,422,383 $42,427,284 $40,997,517 $38,438,717 $35,815,942 ANCILLARY SERVICES AND CAISO CHARGES $3,405,692 $7,075,827 $10,997,945 $11,428,579 $11,866,795 $12,334,026 $12,821,715 $13,326,878 $13,812,781 $14,335,558 RESOURCE ADEQUACY CAPACITY $5,570,842 $9,270,545 $13,329,099 $13,009,335 $13,391,766 $13,788,938 $13,812,953 $14,402, 178 $14,7 45,455 $15,381,372 STAFF AND OTHER OPERATIONS COSTS $7, 169,346 $8,517,394 $9,928,752 $10,146,128 $10,368,322 $10,595,445 $10,827,606 $11,064,918 $11,307,498 $11,555,463 BILLING AND DATA MANAGEMENT $1,622,317 $3,358,684 $5,215,112 $5,398,424 $5,588, 178 $5,784,603 $5,987,931 $6,198,407 $6,416,281 $6,641,814 UNCOLLECTIBLES EXPENSE $399,055 $819,072 $1,223,555 $1,306,950 $1,358,967 $1,404,852 $1,463,767 $1,527,695 $1,580,324 $1,638,091 STARTUP FINANCING $2,663,926 $2,663,926 $2,663,926 $2,663,926 $2,663,926 $0 $0 $0 $0 $0 CCA BOND CARRYING COST $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 SUB TOT Al -CCA OPERATING COSTS $80,211,494 $164,634,977 $245,936, 112 $262,698,547 $273, 15 3,881 $282,376,814 $294,218,655 $307,068, 11 2 $317,646,612 $329,257,722 IV. REVENUES FROM GREEN PREMIUM AND MARKET SALES($) GREEN PRICING PREMIUM $ 209,086 $ 432,872 $ 672, 130 $ 695,756 $ 684,201 $ 670,974 $ 655,973 $ 639,087 $ 620,204 $ 599,204 MARKET SALES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 V. CONTRIBUTION TO PROGRAM RESERVES ($) $3,208,460 $6,585,399 $9,837,444 $10,507,942 $10,926, 155 $11,295,073 $11,768,746 $12,282,724 $12,705,864 $13, 170,309 VI. CCA REVENUE REQUIREMENT($) $83,210,867 $170,787,505 $255,101,426 $272,510,733 $283,395,835 $293,000,912 $305,331,428 $318,711,749 $329,732,273 $341,828,827 -- CCA PROGRAM AVERAGE RATE (CENTS/KWH) 7.4 7.6 7.5 8.0 8.2 8.5 8.8 9.1 9.4 9.7 PG&E AVERAGE GENERATION COST (CENTS/KWH) 9.6 9.7 10.l l 0.5 10.7 10.9 11.3 11.6 11.9 12.3 - VII. PG&E CCA CUSTOMER SURCHARGES($) POWER CHARGE INDIFFERENCE ADJUSTMENT $17,176,539 $34,339,259 $57,624,201 $59,979,592 $68,846,649 $71,301,137 $73,395,868 $72,904,287 $76,084,978 $75,601,919 FRANCHISE FEE SURCHARGE $807,311 $1,645, 165 $2,566,976 $2,677,997 $2,765,271 $2,826,865 $2,939.449 $3,028,912 $3, 132,039 $3,233,921 SUBTOTAL -PG&E CCA CUSTOMER SURCHARGES $ 17,983,851 $ 35,984,424 $ 60,191,178 $ 62,657,588 $ 71,611,920 $ 7 4, 128,002 $ 76,335,317 $ 75,933,200 $ 79,217,017 $ 78,835,840 VIII. CCA REVENUE REQUIREMENT PLUS PG&E CCA CUSTOMER SURCHARGES $101,194,718 $206,771,929 $315,292,604 $335, 168,322 $355,007,755 $367, 128,913 $381,666,745 $394,644,949 $408,949,290 $420,664,666 IX. REVENUE AT PG&E GENERATION RATES $107,931,990 $219,947,272 $343, 187, 142 $358,029,788 $369,697,818 $377,932,408 $392,984,207 $404,944,826 $418,732,178 $432,353,066 X. TOTAL CHANGE IN CUSTOMER ELECTRIC CHARGES OR SURPLUS $ (6,737,272) $ (13,175,343) $ (27,894,538) $ (22,861 ,466) $ (14,690,063) $ ( 1 0,803,495) $ (11,317,462) $ (10,299,877) $ (9,782,888) $ (11,688,400) CHANGE IN CUSTOMER ELECTRIC CHARGES OR SURPLUS (o/o) -3% -3% -4% -3% -2% -1% -1% -1% -1% -1% SILICON VALLEY COMMUNITY CHOICE ENERGY FINANCIAL PROFORMA ANALYSIS SCENARIO 3 CATEGORY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEARS YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 CUSTOMER ACCOUNTS, RESIDENTIAL (E-1 ) 61,781 124,179 187,200 188,136 189,076 190,022 190,972 191,927 192,886 193,8S1 SMALL COMMERCIAL (A-1) S,08S 10,221 lS,409 1 S,486 1 S,S63 lS,641 1 S,719 lS,798 lS,877 1S,9S6 SMALL COMMERCIAL (A-6) 332 667 1,006 1,011 1,016 1,021 1,026 1,032 1,037 1,042 MEDIUM COMMERCIAL (A-1 OJ 716 1,439 2,169 2,180 2,191 2,202 2,213 2,224 2,23S 2,247 LARGE COMMERCIAL (E-19) 331 66S 1,002 1,007 1,012 1,017 1,022 1,027 1,032 1,037 INDUSTRIAL (E-20) 12 24 37 37 37 37 38 38 38 38 STREET LIGHTING AND TRAFFIC CONTROL (LS-3) 4S2 908 1,369 1,376 1,383 1,390 1,397 1,404 1,411 1,418 AGRICULTURAL (AG-1 B, AG-4A, AG-4B, AG-SA, AG-SB, AG-SC) 267 S38 810 814 819 823 827 831 83S 839 SUB TOT Al -CUSTOMER ACCOUNTS 68,976 138,642 209,003 210,048 211,098 212, 1 S3 213,214 214,280 21 S,3S2 216,428 II. LOAD REQUIREMENTS (KWH), RESIDENTIAL (E-1) 379,302,23S 762,397,493 1,149,314,221 1, 1 SS,060,792 1, 160,836,096 1, 166,640,276 1, 172,473,478 1, 178,33S,84S 1, 184,227,S24 1, 190, 148,662 SMALL COMMERCIAL (A-1) 103,830,97S 208,700,2S9 314,61 S,641 316,188,719 317,769,663 319,3S8,S 11 320,9SS,304 322,S60,080 324, 172,881 32S,793,74S SMALL COMMERCIAL (A-6) 1 S,S89,202 31,334,29S 47,236,4SO 47,472,633 47,709,996 47,948,S46 48, 188,289 48,429,230 48,671,376 48,914,733 MEDIUM COMMERCIAL (A-1 OJ 161,290,281 324, 193,466 488,721,6SO 491,16S,2S8 493,621,084 496,089, 190 498,S69,636 SOl ,062,484 S03,S67,796 S06,08S,63S LARGE COMMERCIAL (E-19) 226, 1 S7,4S3 4S4,S76,480 68S,274,044 688,700,414 692,143,916 69S,604,636 699,082,6S9 702,S78,072 706,090,963 709,621,418 INDUSTRIAL (E-20) 213,906,622 429,9S2,310 648, 1S3,107 6S 1,393,872 6S4,650,841 6S7,924,096 661,213,716 664,S 19,78S 667,842,384 671, 181,S96 STREET LIGHTING ANO TRAFFIC CONTROL (LS-3) S,830,063 11,718,427 17,66S,S29 17,7S3,8S7 17,842,626 17,931,839 18,021,498 18,111,606 18,202, 164 18,293, 17S AGRICULTURAL (AG-1 B, AG-4A, AG-4B, AG-SA, AG-SB, AG-SC) 18,032,203 36,244,729 S4,638,929 S4,912, 124 SS, 186,684 SS,462,618 SS,739,931 56,018,630 S6,298,723 56,S80,217 SUBTOTAL -LOAD REQUIREMENTS 1, 123,939,035 2,2S9,117,460 3,40S,619,S71 3,422,647,669 3,439,760,907 3,4S6,9S9,711 3,474,244,510 3,491,61 S,733 3,S09,073,811 3,S26,619, 180 Ill. CCA OPERATING COSTS($) SHORT TERM MARKET PURCHASES $2, 138,349 $4,000,476 $4,990,4S7 $4,840,8S7 $4,7S1,013 $4,699,S24 $4,S63,8S2 $4,S09,270 $4,3S7,738 $4,232,619 TERM CONTRACT PURCHASES $S,388,639 $46,084,798 $66, 177,S 1 S $94,943,387 $9S,488,604 $96, 13S,040 $113,223,S49 $112,734,9S8 $118,313,226 $117,68S,380 SHORT TERM RENEWABLE MARKET PURCHASES AND RECS $S 1,926,387 $80,620,791 $123,S10,S29 $107,698,247 $112,467,877 $118,060,841 $107,S91,967 $114,483,986 $11 3,868,272 $119,473,820 SHORT TERM CARBON FREE MARKET PURCHASES $4,929,960 $12,792,21 3 $24,041,S7S $29,030,947 $32,S21,7SS $36,49S,SS8 $40,807,49S $45,397,707 $49,423,S60 $S4, 107,821 ANCILLARY SERVICES AND CAISO CHARGES $3,40S,692 $7,07S,827 $10,997,94S $11,428,S79 $11,866,79S $12,334,026 $12,821,71S $13,326,878 $13,812,781 $14,33S,5S8 RESOURCE ADEQUACY CAPACITY $S,S70,842 $9,270,S4S $13,329,099 $13,009,335 $13,391,766 $13,788,938 $13,812,9S3 $14,402, 178 $14,7 4S,4SS $1S,381,372 STAFF AND OTHER OPERATIONS COSTS $7, 169,346 $8,S17,394 $9,928,7S2 $10,146,128 $10,368,322 $10,S9S,44S $10,827,606 $11,064,918 $11,307,498 $11,SSS,463 BILLING AND DATA MANAGEMENT $1,622,317 $3,3S8,684 $S,21S,112 $5,398,424 $S,S88, 178 $S,784,603 $S,987,931 $6, 198,407 $6,416,281 $6,641,814 UNCOLLECTIBLES EXPENSE $424,077 $871,923 $1,304,27S $1,39S,799 $1,44S,S41 $1,489,470 $1,S48,18S $1,610,S92 $1,661,224 $1,717,069 STARTUP FINANCING $2,663,926 $2,663,926 $2,663,926 $2,663,926 $2,663,926 $0 $0 $0 $0 $0 CCA BOND CARRYING COST $1,500 $1,SOO $1,SOO $1,SOO $1,SOO $1,500 $1,SOO $1,SOO $1,500 $1,SOO SUB TOT Al -CCA OPERATING COSTS $8S,241,036 $17 S,2S8,077 $262, 160,68S $280,SS7, 129 $290,SSS,277 $299,384,946 $311,186,7S4 $323,730,394 $333,907,S33 $34S, 132,416 IV. REVENUES FROM GREEN PREMIUM AND MARKET SALES($) GREEN PRICING PREMIUM 104,S43 216,436 336,06S 347,878 360,106 372,764 38S,866 399,429 413,469 428,003 MARKET SALES $S9,746 $2S4,892 $1S0,42S $914,SS7 $1,200,SSS $1,S80,940 $2,278,637 $2,830,291 $3,378,309 $3,990,921 v. CONTRIBUTION TO PROGRAM RESERVES($) $3,407,2S2 $7,000, 127 $10,480,41 0 $11, 18S,703 $11,S74,189 $11,912,160 $12,3S6,32S $12,836,004 $13,221,169 $13,64S,660 VI. CCA REVENUE REQUIREMENT($) $88,483,999 $181,786,877 $272, 1 S4,60S $290,480,396 $300,S68,806 $309,343,403 $320,878,S7S $333,336,678 $343,336,924 $3S4,3S9, 152 CCA PROGRAM AVERAGE RATE (CENTS/KWH) 7.9 8.0 8.0 8.S 8.7 8.9 9.2 9.S 9.8 10.0 PG&E AVERAGE GENERATION COST (CENTS/KWH) 9.6 9.7 10.1 10.S 10.7 10.9 11.3 11.6 11.9 12.3 VII. PG&E CCA CUSTOMER SURCHARGES($) POWER CHARGE INDIFFERENCE ADJUSTMENT $17, 176,S39 $34,339,2S9 $S7,624,201 $S9,979,S92 $68,846,649 $71,301,137 $73,39S,868 $72,904,287 $76,084,978 $7S,601,919 FRANCHISE FEE SURCHARGE $807,311 $1,64S, 165 $2,S66,976 $2,677,997 $2,76S,271 $2,826,86S $2,939,449 $3,028,912 $3, 132,039 $3,233,921 SUBTOTAL -PG&E CCA CUSTOMER SURCHARGES 17,983,8S1 $ 35,984,424 $ 60,191,178 $ 62,6S7,S88 $ 71,611,920 $ 74, 128,002 $ 76,335,317 $ 7S,933,200 $ 79,217,017 $ 78,83S,840 VIII. CCA REVENUE REQUIREMENT PLUS PG&E CCA CUSTOMER SURCHARGES $106,467,849 $217,771,301 $332,34S,782 $3S3, 137,98S $372, 180,726 $383,471,404 $397,213,892 $409,269,878 $422,SS3,941 $433,194,991 IX. REVENUE AT PG&E GENERATION RATES $107,931,990 $219,947,272 $343, 187, 142 $3S8,029,788 $369,697,818 $377,932,408 $392,984,207 $404,944,826 $418,732, 178 $432,3S3,066 X. TOTAL CHANGE IN CUSTOMER ELECTRIC CHARGES OR SURPLUS (1,464,141) (2, 175,971) (10,841,360) (4,891,803) 2,482,908 5,538,996 4,229,685 4,325,052 3,821,763 841,925 CHANGE IN CUSTOMER ELECTRIC CHARGES OR SURPLUS (%) .. 1% Oo/o -2% -1% 0% 1% 1% 1% 0% 0% CC 12-01-2015 Item No. 19 1 Lauren Sapudar Subject:FW: Please vote in favor of Silicon Valley Community Choice Energy at tonight's meeting From: J Butts [mailto:jb.ecomail@gmail.com] Sent: Tuesday, December 01, 2015 10:22 AM To: Barry Chang Subject: Please vote in favor of Silicon Valley Community Choice Energy at tonight's meeting Dear Council Member Chang, I support Silicon Valley Community Choice Energy. Joining SVCCE is the single most powerful action the city can take to reduce Greenhouse Gas Emissions, and it is a critical step in meeting Cupertino's Climate Action goals. And simply, it is the right thing to do for our residents and for the planet. Cupertino has been a leader and an investor in the development of Silicon Valley Community Choice Energy. I ask for your vote in favor of Silicon Valley Community Choice Energy at tonight's Council meeting. Please do all in your power to make it a unanimous favorable decision tonight. Thank you, Jan Butts CC 12-01-2015 Item No. 19 1 Lauren Sapudar Subject:FW: Your support for Cupertino joining SVCCEP From: Bruce Naegel [mailto:bnaegel@sustainablesv.org] Sent: Tuesday, December 01, 2015 2:27 PM To: Rod Sinks Subject: Your support for Cupertino joining SVCCEP Dear Rod, We have met at a few meetings, the last one being at Hitachi on the Grid. I am writing to you to support Cupertino joining SVCCEP (Silicon Valley Community Choice Energy Partnership) . As a resident of Mountain View and a member of an advocacy group supporting Community Choice Energy for Mountain View, we need to have Cupertino in SVCCEP. I am writing this letter of support since I cannot attend tonight’s meeting. Having Cupertino in SVCCEP is of high importance to me for a number of reasons. First as one of the initial 4 members of SVCCEP, we need Cupertino to have a strong SVCCEP. With a strong SVCCEP, we are in a better position to drive more quickly to an electrical supply built on renewable energy for SVCCEP at competitive pricing. A strong SVCCEP presents competition to our current utility, driving them to higher renewable energy content in the electricity they supply. The transportation segment emits close to 40% of the GHG (Green House Gas) content. If we move transportation to electric locomotion, we eliminate tailpipe emissions. If we make the electricity from renewable sources we have transportation that is nominally carbon free. If we can drive all of our energy uses from electrical sources that are carbon free, we have moved very close to a carbon free economy. The SVCCEP will help to get us there. The state of California has legislated that GHGs need to be reduced by 40% by 2030 and 80% by 2050, as compared to the 1990 baseline. These goals can be met, but they are not easy. Having tools like CCAs or CCEs available increases the probability we will get to our goals on time. Thanks in advance for considering supporting Cupertino to be a member of SVCCEP. Sincerely, Bruce Naegel Senior Adviser Sustainable Silicon Valley 650 318 3638 X 399 office 650 996 5793 Mobile bnaegel@sustainablesv.org Error! Filename not specified. CC 12-01-2015 Item No. 19 1 Lauren Sapudar Subject:FW: Cupertino supporting SVCCEP From: Bruce Naegel [mailto:bnaegel@sustainablesv.org] Sent: Tuesday, December 01, 2015 3:01 PM To: City Council Subject: Cupertino supporting SVCCEP I am writing to you to support Cupertino joining SVCCEP (Silicon Valley Community Choice Energy Partnership) . As a resident of Mountain View and a member of an advocacy group supporting Community Choice Energy for Mountain View, we need to have Cupertino in SVCCEP. I am writing this letter of support since I cannot attend tonight’s meeting. Having Cupertino in SVCCEP is of high importance to me for a number of reasons. First as one of the initial 4 members of SVCCEP, we need Cupertino to have a strong SVCCEP. With a strong SVCCEP, we are in a better position to drive more quickly to an electrical supply built on renewable energy for SVCCEP at competitive pricing. A strong SVCCEP presents competition to our current utility, driving them to higher renewable energy content in the electricity they supply. The transportation segment emits close to 40% of the GHG (Green House Gas) content. If we move transportation to electric locomotion, we eliminate tailpipe emissions. If we make the electricity from renewable sources we have transportation that is nominally carbon free. If we can drive all of our energy uses from electrical sources that are carbon free, we have moved very close to a carbon free economy. The SVCCEP will help to get us there. The state of California has legislated that GHGs need to be reduced by 40% by 2030 and 80% by 2050, as compared to the 1990 baseline. These goals can be met, but they are not easy. Having tools like CCAs or CCEs available increases the probability we will get to our goals on time. Thanks in advance for considering supporting Cupertino to be a member of SVCCEP. Sincerely, Bruce Naegel Senior Adviser Sustainable Silicon Valley 650 318 3638 X 399 office 650 996 5793 Mobile bnaegel@sustainablesv.org Error! Filename not specified. CC 12-01-2015 Item No. 19 1 Lauren Sapudar Subject:FW: Please vote YES tonight on CCE for Cupertino From: Jeralyn Moran [mailto:jeralyn.moran@gmail.com] Sent: Tuesday, December 01, 2015 3:06 PM To: Rod Sinks Subject: Please vote YES tonight on CCE for Cupertino Dear Mayor Sinks, Please vote YES for the Cupertino Community Choice Energy (CCE) Ordinance! The crisis of Climate Change is upon us, and aggressive action at the local level is vital right now. There is no time to waste. Consider what you will have to say to your grandchildren if you fail to support this important step - make Cupertino a Leader and vote YES for CCE! Sincerely, Jeralyn Moran Co-Chair of the Green Sanctuary Committee, Unitarian Universalist Church of Palo Alto -- jeralyn.moran@gmail.com ..... the Time for Climate Action Is Now. CC 12-01-2015 Item No. 19 1 Lauren Sapudar Subject:FW: VOTE YES FOR CLEAN ENERGY From: MARIBEL ANDONIAN [mailto:mrandonian@mac.com] Sent: Tuesday, December 01, 2015 3:56 PM To: Barry Chang Subject: VOTE YES FOR CLEAN ENERGY Dear Barry: It’s imperative—for our kids and grandkids—that ALL municipalities become green communities by transitioning away from fossil fuel-based energy to renewable, CLEAN energy. Cupertino has an opportunity to lead other Silicon Valley cities toward a clean energy future. My husband and I have lived in Cupertino for over 30 years. Our children were educated in our local schools and we have participated in the community as active volunteers. We urge the Cupertino City Council to join the Community Choice Energy program. Please VOTE YES for clean energy. Your neighbor on Lindy Lane, Maribel Andonian CC 12-01-2015 Item No. 19 1 Lauren Sapudar Subject:FW: Vote yes on Community Choice Energy From: Mike Balma [mailto:mike.balma@yahoo.com] Sent: Tuesday, December 01, 2015 4:41 PM To: Barry Chang Subject: Vote yes on Community Choice Energy Barry, please vote yes tonight on the issue of joining/creating a JPA for Community Choice Energy. I worked at HP for 20 years in Cupertino and I'm now with a nonprofit solar organization helping home owners go solar. We have many customer and volunteers from Cupertino. And I live in Mountain View which is teaming with Cupertino on this opportunity. A CCE will help Cupertino achieve it's Climate Action Plan with minimum investment. It is the single biggest action that Cupertino can do. And the cost will be paid back by the CCE. A CCE is good for business because they have demonstrated an ability to not only provide electricity with lower green house gases, but they do it at a lower price than PG&E. That's good for business. And the leading employer in Cupertino is a strong supporter of renewable energy since they run all their data centers on renewable energy. They could be a good partner and ally in expanding the pool of cost effective renewable energy. A CCE is good for existing and future solar customers too. The existing CCEs provide incentives for locally produced solar energy including residential solar. In particular, the Marin policies encourage larger solar systems. So homes that have roof tops with good sun exposure can help generate energy for their neighbors and get compensated for that. Please vote Yes for Community Choice Energy. Regards, Mike Balma SunWork.org CC 12-01-2015 Item No. 19 1 Lauren Sapudar Subject:FW: Support for the Cupertino CCE Ordinance From: Jacky Lee [mailto:dr.jackylee@yahoo.com] Sent: Tuesday, December 01, 2015 5:04 PM To: City Council Subject: Support for the Cupertino CCE Ordinance Dear Cupertino City Council Members, I am a high school student and former Cupertino resident and I would like to urge you all to support joining the Silicon Valley Community Choice Energy program. Multiple studies conducted by different groups, including the Sierra Club, have concluded that joining a CCE program is the most cost-effective action a city can take to reduce the greenhouse gas emissions of its residents and businesses. The technical study which was co-funded by Cupertino has shown that communities can significantly reduce greenhouse gas emissions in addition to providing lower costs for electricity. Furthermore, the studies have indicated that CCE programs have various benefits and pose little risk to participating jurisdictions. Current CCE programs such as Marin Clean Energy and Sonoma Clean Power have been able to provide renewable energy to its customers at prices competitive with that of PG&E. I hope that you all will consider the benefits and opportunities that being a part of a CCE program will provide and vote in favor of joining the Silicon Valley CCE. Sincerely, Jacky Lee CC 12-01-2015 Item No. 19 1 Lauren Sapudar Subject:FW: Please vote yes on Community Choice Energy From: Thida Cornes [mailto:tcornes@gmail.com] Sent: Tuesday, December 01, 2015 5:05 PM To: Rod Sinks; Barry Chang; Gilbert Wong; Darcy Paul; Savita Vaidhyanathan Cc: Cherie Walkowiak; Jeralyn Moran Subject: Please vote yes on Community Choice Energy Dear City Council, I urge your yes vote on moving forward with the next step towards Community Choice Energy (CCE). Someone has to be the first, but I and others will work hard to ensure my own city of Mountain View and other cities join Cupertino. CCE is a very cost effective way of reducing greenhouse emissions. It's also attractive to many high- tech businesses, who as you know, often require a lot of energy to run their networks, servers, etc, but want to tout their sustainability to their customers. Thanks, Thida Cornes