Community Choice Energy In San Mateo County County CCE Advisory Committee May 28, 2015

Goals of a Countywide CCA Program 1.Lower greenhouse gas intensity than PG&E 2.Lower electricity rates 3.Priority on local power development, local energy programs and minimal/no use of unbundled RECs 4.Quantifiable and equitable economic development benefits; local jobs, local business partnerships, low-income communities 5.Different energy options, customer choice 6.Stimulate growth of new renewable power development 7.Promote energy conservation and demand reduction 8.Foster community resilience; local ownership of energy resources 9.Well managed, fiscally sound, publicly transparent organization 10.Foster inter-jurisdictional cooperation, consumer benefit and local business opportunity

Structure of Countywide CCE Program Organizational Structure: Joint Powers Agency Common legal structure for multi-jurisdictional programs Creates a legal firewall between assets and liabilities of the JPA and those of municipal general funds; municipalities protected from contract and program risk Administrative overhead currently between 4-6% for existing JPAs Local yet scalable approach to achieve community goals and objectives Statutory/Regulatory Requirements Load data/customer protections, enabling ordinance, implementation plan, utility service agreement, customer enrollment, resource adequacy, renewable portfolio Standard (RPS) and other regulatory reporting. Governance/Staffing Local elected officials provide local accountability. Two-tier voting structure. Board oversight of Agency operations, all revenues/expenses, power supply decisions, rate setting, and related energy programs. 10 – 20 staffers depending on size and scope. Surplus Revenues Can be leveraged for broad community benefit -- new energy and environmental programs, local power development, held in reserves for long-term rate stabilization.

Elements of CCE Formation & Operations 1.Local Policy, State Statutory & Regulatory Requirements 2. Community Engagement/Marketing 3. CCA Program & JPA Development 4. Technical – power procurement, rate-setting, forecasting 5. Financial/Legal

Overview of SMC Formation Timeline San Mateo County could launch a CCA by Q Phase 1 Phase 2 January -September 2015Sept April 2016May – September 2016 Pre-Planning & Due Diligence Community Outreach; CCA Planning & Development Preparing for Launch Internal planning team Initial outreach to cities and key stakeholders Workshops & education CCE technical study Formation of CCE advisory committee CCE Program design, JPA formation Public outreach Local ordinances Implementation Plan RFP for Energy Services JPA staffing/working capital Energy supply and other service contracts Utility Service Agreement Regulatory registrations Call Center & Customer Enrollment Phase 3

Proposed CCA Formation Budget Phase IPhase IIPhase IIITOTALS: Internal Planning; CCA JPA Development $60,000$220,000$100,000$370,000 External Affairs/ Community Engagement $75,000$350,000$210,000$635,000 Technical & Energy Services $150,000- $160,000 $220,000$80,000$470,000 Financing Partner(s)$5,000$10,000 $25,000 TOTALS$300,000$800,000$400,000$1.5M* * Includes ~$200,000 in contingency funding County is sponsoring start-up investment; all start-up costs are recoverable through early CCE revenues

Existing CCE Financial Conditions Both Marin and Sonoma’s programs are fiscally sound; All financials are audited/public MCE (FY15-16 Budget)SCP (FY15-16 Budget) Total Revenue$145,933,000$165,495,000 Expenses$141,433,000$148,588,000 Cost of Energy$129,522,000$130,100,000 Cost of Administration4%3.5% Net Increase in Reserves $4,500,000$16,907,000

Accomplishments Thus Far Focused outreach to all 20 cities; unanimous participation in Countywide Technical Study Formed internal staff + consultant team to manage process Unanimous Board agreement to fund CCA program development Robust community engagement: Stakeholder database, e-notifications, website, educational workshops and community events First Advisory Committee meeting on May 28 Technical Study underway in June Return to BOS in early September for study results and Phase II funding

Next Up Through August Technical Study  Load analysis/demand forecast, can program be price competitive; can program significantly reduce GHGs, projected rates 10 years out; power supply options; projected economic devt impacts Evaluation of program options Advisory Committee Mtgs – continued education, prep for Phase II Continued local government, business and community outreach