CLIMATE ACTION PLANS: UTILITIES DISCUSSION California Higher Education Sustainability Conference Eric Eberhardt - UC Office of the President

Utility Discussion for CAPs  Utility Forecasting Overview  Power Content Forecasting and RPS  Energy Pricing Considerations  Third Party Power Providers - DA/CCA  Energy Efficiency Programs - UC/CSU Partnership 2

Utility Forecasting Overview 3

Power Content Forecasting and RPS  Current 33% RPS Requirement by 2020  Unknown future of 2050 RPS and milestone goals  CPUC GHG Calculator (E3 1 ) Emissions Factors  Utilities have ~2 year lag Climate Registry verified EF 2 4 Projected CO2 Intensity tonnes/MWh E3, GHG Calculator version 3c, worksheet tab “CO2 Allocations,” cells AH35 - AK44 PG&ESCESDG&ESMUDLADWP E3 GHG Calculator, 2 Natural Gas emission factors do not change significantly, using tonnes CO2/therm, per U.S. EIA Voluntary Reporting of GHG Program

Energy Pricing - Gas  Key Drivers in California  Pipeline Safety, Environmental, US/World Economy  How quickly will prices rise?  Large users typically procure commodity  Hedging positions vary dramatically  Utilities provide updates on T&D  Monitor pipeline upgrade proposals 5

Energy Pricing - Electricity  Key Drivers in California  Gas Prices, Allowance Prices, RPS Costs  Energy Info Administration Outlook 3 –  % Annual (Newer, historically low)  CPUC GHG Calculator 3 (E3) –  % Annual (Created for CA, older data)  Utilities have multiple rate changes per year  Typically provide updates but not long term forecasts 6 3 Model Run Summaries from UC Davis EE Center Report – The Future of Energy Prices in California, Johnathan Cook Ph.D.,

Third Party Electric Power Providers DA/CCA  Currently Direct Access (DA) participation is capped  Legislation required with limited political interest  Community Choice Aggregation (CCA) is active  Marin and Sonoma are live, many others looking  AB 2145 would impact new CCAs – require opt-in  Every CCA and their offerings are different  Provide alternative to IOU bundled service  Understand pricing, content and commitment 7

Energy Efficiency Programs UC/CSU Partnership  2015 a stand-alone program cycle – mirrors 2014  2016 projected to be start of 10 year rolling cycle  Opportunities for “major overhaul”  Carbon based criteria for projects  Flexibility to utilize non-CPUC funds  Whole building EM&V  Incentive structure will likely change 8