WHAT’S NEW WITH CCA PROCUREMENT?

1. WHAT’S NEW WITH CCA PROCUREMENT? September 25, 2019

2. San José Clean Energy (SJCE) is the CCA that serves the City of San José. Unlike most CCAs, SJCE is a single jurisdiction rather than a JPA. SJCE is an enterprise department of San Jose with a designated fund. Launched in September 2018 to municipal accounts and in February 2019 to residential and commercial accounts. Annual demand: ~5,000 GWh: Peak load: ~1 GW WHO is San Jose Clean Energy?

3. Who Makes up San Jose? • San José is the 10th largest city in the US with over one million people. • Very diverse community: • 34% Hispanic; 33% Asian

4. SJCE Program Goals San Jose Muni Code Title 26: A method by which the City of San Jose can help ensure the provision of clean, reasonably priced and reliable electricity to residents and businesses. Purpose to enhance public welfare and give residents and businesses local control over prices, resources and quality of service.

5. COMPETITIVE SOLICITATIONS • As a government entity, we must transact through a competitive process. • We release competitive solicitations for all of our products and are able to participate in solicitations released by others. • www.sanjosecleanenergy.org/energy-procurement

6. Enabling Counterparties • SJCE may only transact with enabled counterparties: • Credit assessment and limit determined by the San Jose finance department. • SJCE transacts pursuant to the WSPP and the EEI. • City specific language required; most practical to have a Master EEI agreement. • No backing by the City of San Jose but SJCE has a credit facility of $80M with Barclays. • SJCE is transacting with many large power suppliers.

7. KEY PRODUCTS

8. Energy • Procure in small ongoing purchases. • Outstanding need for super-peak and flexible products for 2020. • Will procure for 2021 and 2022 when prices are favorable.

9. Resource Adequacy • State and local requirements (in light of PSPS). • Tight market and Seller market power. • System RA for 2020, and Local RA for 2020-2022. • Individual solicitations and Joint solicitation with other Bay Area CCAs. • Seeking import capability to pair with import RA (Malin, Nob, other locations) • Exploring mid- to long- term solutions (e.g. storage). • Exploring mid- to long- reliability plan for San Jose Area. • Regulatory uncertainty is a deterrent to commitments the City would otherwise consider.

10. Renewables/Carbon-Free 2019 BASE POWER MIX • Procuring RPS and GHG-free for 2020-2021. • Authorized to contract for ~450MW renewables pursuant to long-term contracts for a total of $50M per year. • Must consider IOU allocation possibilities. • Interested in fixed price GHG-free energy in 2021. 45% RENEWABLE 35% CARBON-FREE 20% OTHER

11. Current solicitation in shortlist review and negotiation. Limited to 2021 CODs. Considering stand alone storage RFO in Fall 2019. Next LT solicitation allowing for further out CODs and all technologies expected in Q1 of 2020. Long-term procurement and storage

12. Have partnered with East Bay Community Energy (EBCE). Good match given similar size and start up schedule. One project under contract and another under negotiation. SJCE named as partner on EBCE standalone storage RFI issued Sept. 2019. Joint Procurement w/ other CCAS

13. Jeanne Solé Deputy Director of Power Resources Jeanne.Sole@sanjoseca.gov