Los Angeles County Community Choice Aggregation Regional CCA Task Force Meeting October 28, 2015

Benefits for Local Governments Local control over energy mix – Meet or exceed Renewable Portfolio Standard (RPS). Economic development – Create quality jobs and local, renewable generation assets. Environmental – Meet or exceed Climate Action Plan goals. Local energy programs – Integrated Demand Side Management. Rate stability – Lower costs for homeowners and businesses. Consumer choice – Competition for lower rates.

Steps Required to Launch CCA Technical Feasibility Study – Ongoing. CCA Ordinance – All entities must opt-in. Implementation Plan – Must be certified by the CPUC. Utility Service Agreement – Filed with CPUC establishes CCA/IOU relationship. Governing Entity – Legal body (JPA) that manages CCA operations. Customer Enrollment – Must give consumers the opportunity to opt- out and return to IOU bundled service.

Establish Regional CCA Task Force Develop a Regional CCA Task Force. Share other jurisdictions’ experiences in implementing CCA. Discuss potential CCA governance and financial models for CCA operations. Work with cities in the County to gauge interest in CCA. Explore issues related to scale in a County-wide program. Develop risk mitigation strategies. Host regular meetings. Send updates to Task Force members. Track action items and next steps.

Develop a 20-Year Budget Procure aggregated load profile data from SCE for unincorporated LA County and all cities served by SCE. Develop a 20-year Budget projecting all costs associated with operating a CCA. Develop modeling which will determine retail rates. Electricity loads to be served within CCA jurisdictions. Costs to procure wholesale power to serve the electricity loads (traditional and clean power). Scenarios for the number of customers to be served. Other costs associated with operating a CCA.

SCE Data Required Information Normally Provided at No Charge Number of accounts in each Rate GroupNo Charge Aggregate annual consumption for each Rate GroupNo Charge Aggregate annual consumption for each Rate GroupNo Charge Aggregate coincident demand in each Rate GroupNo Charge Coincidence peak factors which estimate coincident demandsNo Charge Standard system average load profiles by Rate GroupNo Charge The proportional share in a CCA’s territory or proposed territory as defined in the Commission’s Energy Efficiency Policy Manual No Charge

SCE Data Required (continued) Additional Information Monthly Energy Efficiency participation data provided for Commission reportingNo Charge Mapping of Rate Schedules by Rate GroupNo Charge Public Goods Charge, Residential Tier Data, Generation Revenue Information$ Special Requirements Data Base Processing Fee (required for any report below)$ Aggregate by Zip Code$ Aggregate by Customer Status (Direct Access vs. Bundled Customers)$ Aggregate by Rate Schedule$ Total Cost of Data Requested Payable to SCE$801.60

Comparison to SCE CCA customers will pay the CCA’s cost for generation and SCE’s cost for non-generation (transmission and distribution). CCA customers will pay the Power Charge Indifference Adjustment (PCIA) fee and other regulated charges. CCA rates must be at or below SCE’s rates for the analysis period. Study will forecast SCE’s generation and non-generation rates as well as projecting the PCIA based on the most recent CPUC decision regarding the calculation of the PCIA.

Financing Options Some level of working capital financing will be necessary to support startup of the CCA program. Financing costs will be recovered through retail rates. The current study will explore options for financing and determine the associated costs to be recovered through rate design.

Economic Development One goal of the CCA will be to invest in local renewable resources and integrated demand side management. The CCA will have a positive impact on the local economy and create quality jobs in the service area. The current study will model the economic impact of CCA and estimate the direct and indirect benefits. The modeling will identify potential changes in economic activity in the CCA service area based on different scenarios, and determine the resulting CCA specific economic development potential.

Cash Flow Analysis Cash Flow Analysis estimates the level of working capital that will be required during the start-up and customer phase-in period through full implementation. The analysis will focus primarily on the costs and revenues associated with implementation, and will account for the transition or “Phase-In” of CCA Customers from SCE’s service territory. The Cash Flow Analysis identifies funding requirements while recognizing the potential lag between payments received and payments made during the implementation period.

Marketing and Notifications Statute requires minimum customer enrollment/notification within a 120 day window. Minimum 60 days prior to launch. Within 60 days post launch. Marin and Sonoma differed greatly in marketing approach. Need to establish a brand. Develop marketing strategic plan. Local, community based vs. regional. Determine level of marketing and outreach.

Reports A draft report with the results of the feasibility analysis will be provided after the preliminary analysis is finalized. Comments will be incorporated and a final report will be submitted to LA County. The final report will have sufficient analytical data to allow local governments to make a decision to adopt CCA.