CleanPowerSF Rate Proposal FY

Transcription

1 Services of the San Francisco Public Utilities Commission CleanPowerSF Rate Proposal FY Michael Hyams and Charles Perl April 10,

2 Agenda 1. Background 2. Changes Since Last Rate Action 3. Proposed CleanPowerSF Rates 4. Financial Forecast 5. Discussion 2

3 Background: Rate Proposal Objectives Ensure CleanPowerSF Green and SuperGreen program rates: 1. Recover costs 2. Satisfy financial covenants, including funding reserves and satisfying debt service coverage requirement 3. Remain competitive 4. Comply with PUC policies 3

4 Background: CleanPowerSF Program Status Program serving customers since May 2016 Serving about 81,000 customers now Program opt-out rate consistently at 3.2% CleanPowerSF offering two products Green 40+% renewable energy, our default product into which customers are auto-enrolled SuperGreen 100% renewable energy, an upgrade 4% of customers have opted up to SuperGreen Preparing next auto-enrollment for July 2018 Final auto-enrollment for July

5 Background: Phasing Policy December 8, 2015 the Commission adopted a CleanPowerSF Phasing Policy Rates-related Phasing Policies that must be met for additional CleanPowerSF customer enrollment: Program rates being sufficient to cover program costs Rates for a subsequent phase are projected to be at or below PG&E rates at the launch of each phase 5

6 Background: Rate Setting Policy December 8, 2015 the Commission adopted a CleanPowerSF Rate Setting Policy, consistent with the Charter (Section 8B.125) On September 12, 2017 the Commission adopted a Ratepayer Assurance Policy, to ensure: Revenue Sufficiency Customer Equity Environmental Sustainability Affordability Predictability Simplicity Transparency Compliance CleanPowerSF rates are set consistent with these policies 6

7 May 2016 Background: Previous Rate Actions Adopted a Net Energy Metering Tariff for customers with on-site renewable generation (Schedule NEM-CleanPowerSF) Adopted new residential Time-of-Use rates to mirror those put in place by PG&E (E-TOU) April 2017 Reduced Green rates by 4% on average and reduced SuperGreen product rates for FY January 2018 Reduced SuperGreen premiums, effective March 2018 Adopted modifications to the NEM Tariff 7

8 $/kwh Changes Since Last Rate Action: PG&E Generation Rates Went Up on 3/1/18 Avg. Rate Effective 1/1/18 Avg. Rate Effective 3/1/18 (Actual) $0.12 $0.10 $ $ $ $ $ $ $ $ $ $0.08 $ $ % +8.8% +10.4% +6.8% +8.3% $0.04 $0.02 $0.00 Res. (E1) Sm.Comm. (A1) Med.Comm. (A10S) Lge.Comm. (E19S) Industrial (E20P) 8

9 $/kwh Current CleanPowerSF Rates Green (Residential) $0.12 PG&E Rates 3/1/18 Adopted Green Rates 7/1/17 $0.11 $0.10 $0.09 $0.08 Savings, $ PCIA + FFS, $ $0.07 $0.06 $0.05 Generation Rate, $ Generation Rate, $ $ % less $0.04 $0.03 $0.02 $0.01 $0.00 PG&E CleanPowerSF Green 9

10 $/kwh Current CleanPowerSF Rates SuperGreen (Residential) $0.14 $0.13 $0.12 $0.11 $0.10 $0.09 $0.08 $0.07 $0.06 $0.05 PG&E Rates 3/1/18 100% Renewable Premium, $0.020 Generation Rate, $ Adopted Green Rates 7/1/17 + New SuperGreen Premium Savings, $ % Renewable Premium, $0.015 PCIA + FFS, $ Generation Rate, $ $ % less $0.04 $0.03 $0.02 $0.01 $0.00 PG&E Solar Choice CleanPowerSF SuperGreen 10

11 $/kwh Current CleanPowerSF Rates Green v. New PG&E Generation and PCIA Rates PG&E Avg. Rate (3/1/18) CleanPowerSF Avg. Green Rate (7/1/17) PG&E PCIA + FFS (3/1/18) $0.120 $0.100 $ % -5.8% -7.4% -6.6% -5.7% $ $ $ $ $ $ $ $ $ $ $0.060 $0.040 $ $ $ $ $ $0.020 $0.000 Res. (E1) Sm.Comm. (A1) Med.Comm. (A10S) Lge.Comm. (E19S) Industrial (E20P) 11

12 Proposed FY CleanPowerSF Rates Green Rates Increase rates about 5%, on average, but maintain a 2% discount relative to PG&E after accounting for surcharges Rates recover operating costs, satisfy financial covenants and fund program reserves SuperGreen Rate Premiums Reduce Medium and Large Commercial Premiums from 1.0 cents per kwh to 0.5 cents per kwh SuperGreen revenues projected to recover SuperGreen costs Late Opt-out Fee Set residential and commercial termination fees to $0 through the end of the citywide enrollment period 12

13 $/kwh Proposed CleanPowerSF Rates (2% Discount) Green v. New PG&E Generation and PCIA Rates PG&E Avg. Rate (3/1/18) CleanPowerSF Avg. Green Rate (7/1/17) PG&E PCIA + FFS (3/1/18) $0.120 $ % -2.0% -2.0% -2.0% -2.0% $ $ $ $ $ $0.080 $ $ $ $ $ $0.060 $0.040 $ $ $ $ $ $0.020 $0.000 Res. (E1) Sm.Comm. (A1) Med.Comm. (A10S) Lge.Comm. (E19S) Industrial (E20P) 13

14 $/kwh Proposed SuperGreen Rates Medium Commercial (A-10) Average Generation Rate PG&E PCIA + FFS Premium for 100% Renewable Energy $0.14 $0.12 $0.10 $0.08 $ $ % +3.4% -0.8% $ $ $ $ $ $ $ $ $ $0.06 $ $0.04 $ $ $ $0.02 $0.00 PG&E Solar Choice Current Rates (3/1/18) CleanPowerSF Current Rates (3/1/18) CleanPowerSF Proposed Green Rates & Current SuperGreen Premium CleanPowerSF Proposed Green Rates & Proposed SuperGreen Premium 14

15 Financial Forecast for FYE 19 Total Revenues (incl. Green and SuperGreen) Scenario No Change from Current Rates Rate Proposal (2% Discount from PG&E) 0.25% Discount from PG&E Total Revenue ($M) Projected Contribution to Reserves ($M) Projected Year End Fund Balance ($M, % of Target) $147.9 $12.4 $ % $157.7 $22.1 $ % $161.3 $25.8 $ % 15

16 Discussion 16

17 Services of the San Francisco Public Utilities Commission Attachments 17

18 Background: CleanPowerSF Initial Rates The Commission also adopted rates for program launch using the Not-to-Exceed rate setting methodology presented to the RFB on April 17, 2015: PG&E Generation Rate(s) PG&E Power Charge Indifference Adjustment (PCIA) PG&E Franchise Fee Surcharge (FFS) = CleanPowerSF NTE rate(s) for default product CleanPowerSF Green rates set 0.25% below PG&E rates as of March 1, 2016 minus PCIA and FFS Results in greener energy and bills lower compared to PG&E SuperGreen $0.02/kWh premium over Green rates 18