IMPERIAL IRRIGATION DISTRICT Energy Consumers Advisory Committee Regular Meeting: Monday, July 9, 2018, 6 p.m. IID BOARDROOMS 1285 Broadway, El Centro, CA 81-600 Avenue 58, La Quinta, CA Web Access: www.iid.com NOTICE: For accommodations for persons with disabilities, please call the ECAC Coordinator at (760) 898-1877. Notifications received 48 hours in advance of the meeting will enable reasonable accommodations be made. ECAC Members Imperial Valley Division 1 Jeffrey Plourd Thomas Brinkerhoff Division 2 Shorty Hickingbottom Gil Perez Division 3 Gerald Gauna Eric Reyes Division 4 Guillermo Hermosillo Chad Cooper Division 5 Michael Anderson Esther Gomez Supplemental Agenda ACTION ITEMS Green Energy Renewable Service Program (B. Valenzuela) 1 Coachella Valley City of Coachella Philip Bautista Jacob Alvarez City of Indio Lupe Ramos Watson Brian Macy City of La Quinta Steve Sanchez George Christopher County of Riverside Becky Broughton Patricia Saleh Steven Bayard Cities of Palm Desert & Rancho Mirage Joel Montalvo For more information, please visit www.iid.com or contact: Rosa Maria Gonzales rmgonzales@iid.com O: 760.398.5812 M: 760.898.1877
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Imperial Irrigation District Energy Consumers Advisory Committee Agenda Report 2 TO: FROM: SUBJECT: ECAC Members Belen Valenzuela, chief financial officer Araceli Gutierrez, business control analyst Green Energy Renewable Service Program DATE: July 9, 2018 Staff Recommendation/Motion: Staff seeks the ECAC s recommendation for board approval of the Green Energy Renewable Service Program. Financial Analysis: The green rate is estimated to range from $0.0130 to $0.0200 per kilowatt-hour of renewable energy subscribed. Background: Staff has fielded requests from new and existing customers requesting an opportunity to purchase renewable energy form IID to meet their individual energy load needs and renewable requirements. Customers have expressed interest in seeking an alternative solution to help support the environment without having to make the investment in installing onside renewable generation systems. As such, staff has created program guidelines and requirements for a green rate program consistent with other utilities green rate programs. Energy Department has additional renewable energy procured beyond the state-mandated renewable portfolio compliance standards requirement, of which 5 MW would be allocated to the green rate program. Under the program, a customer can select its level of participation with a subscription for renewable energy up to 100 percent of the customer s energy load requirements. The program would be available to all retail electric customers, with an exception applying to customers that have installed onsite renewable systems or wholesale power customers receiving standby service. The green rate will be determined and is intended to fluctuate based on IID s 12-month actual incremental cost for procuring renewable resources and will be applied to the customer s bill. Information regarding this program will be available to customers via the IID s website. Included for the ECAC s consideration are the guidelines for the green rate program.
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4 IMPERIAL IRRIGATION DISTRICT Imperial, California Green Energy Renewable Service Program APPLICABILITY Applicable to customers who elect to participate in the Green Energy Rate Program for the purpose of having IID procure or use a renewable resource to meet customer subscriptions under IID s Green Energy Rate Program. This schedule is available to customers on a first-come, first-serve basis until the utility reaches the 5 MW allocated to the program. Customers receiving service under Rate Schedule NM, Net Metering and Rate Schedule DG, Distributive Self-Generation Service, and wholesale power service customers receiving standby service under Rate Schedule A-2, General Wholesale Power Service, are not eligible to participate under this program. Customers participating in the program shall be responsible for all charges and rates specified in the customer s applicable rate schedule for service. Enrollment in the program does not alter the customer s utility usage or other utility related services. MONTHLY RATE The monthly rate shall apply to the customer s kilowatt-hour allocation subscribed under the IID s Green Energy Rate Program. As determined by the district, the rate shall be adjusted annually or as needed. Rate Determination: Customers will be billed for all electric usage under the applicable IID rate schedule. The green rate will be applicable on the customers chosen green percentage of electric usage. The green rate will be calculated by taking the actual incremental cost to procure renewable resources for the previous 12-months required to meet the renewable portfolio compliance standards. The monthly rate will fluctuate based on IID s cost to procure renewable resources. Customers can access the updates and changes to the green rate and program through IID s website under IID s Green Energy Rate Program at www.iid.com. SPECIAL CONDITIONS A. Customer Enrollment and Term: Service under this schedule shall become effective at the start of the next billing period after IID receives a request from the customer to take service. The request must include the customer s elected subscription option. If the customer elects to no longer receive service under this schedule, the change will become effective at the start of the next billing period after the date that IID receives the customer s request to de-enroll from the Green Energy Rate Program. Board Action Page 1 of 2 Date Effective
5 IMPERIAL IRRIGATION DISTRICT Imperial, California B. Customer Subscriptions: Prior to receiving service under this schedule, customers must elect a subscription option of either 100 percent or lower of their registered monthly kilowatt-hour load. IID will calculate the customer s subscribed monthly kilowatt-hour load elected and allowed under the program. Any kilowatt-hours subscribed exceeding the customer s subscription shall be subject to negotiation. Customers may change their subscription option once in any given 12-month period, and such change shall become effective at the start of the next billing period after the customer notifies IID of the change. Customers with existing subscriptions who relocate elsewhere within IID s service territory can retain their subscription at their new service address. The subscription will apply to the new service account, unless the customer elects to no longer receive service under this schedule at the time the new service account is established. C. Billing: (1) Each billing period, the district shall measure the energy provided to the customer in kilowatt-hours and apply charges under the customer s applicable rate schedule for electric service. (2) The district shall bill the customer each billing month for all applicable charges under the customer s rate schedule. (3) Each billing month, the customer s subscribed kilowatt-hour allocation under the Green Energy Rate Program shall be multiplied by the rate shown in the rate determination section above. (4) Customer charges shall be paid in accordance with the district s normal monthly billing cycle. D. Customers participating under this program shall adhere to the Imperial Irrigation District s Regulations Governing the Sale of Electric Energy. Board Action Page 1 of 2 Date Effective
6 Green Energy Renewable Service Program Belen Valenzuela Chief Financial Officer July 9, 2018 www.iid.com
Overview 7 The green energy renewable service program enables customers to increase the production of renewable energy Demonstrate environmental responsibility Reduce greenhouse gas emissions Provide customers a choice All customer types access to additional renewable energy www.iid.com 2
How It Works 8 Renewable Resources Electric Grid Electricity is generated and purchased from a renewable resource Additional renewable energy is supplied to the grid Your Home Your Business By choosing the Green Rate, more renewable electricity is delivered at a premium to customers www.iid.com 3
Program Guidelines 9 Available to IID s Customers Simple and Attractive Program IID offers 5 MW of its renewable resources First come, first served Customers may elect to purchase up to 100 percent of their electrical load No term, sign-up or termination fee Commercial customers have expressed interest Green rate is expected to fluctuate monthly based on cost. Estimated rate range may be from 1.31 cents to 2.00 cents per kwh www.iid.com 4
Green Rate 10 Rate Determination: 12-month actual incremental renewable cost to meet the Renewable Portfolio Compliance Standard Additional renewable energy is billed at the green rate and applied on customer s monthly electric bill Current rate of 1.31 for each kwh of usage served on the Green Rate Program Example Commercial customer, monthly bill $13,000, 100,000 kwh: Additional $655/month for 50 percent green energy www.iid.com 5
Recommendation 11 Staff recommends board approval at the next meeting Program would become available to customers on the last quarter of 2018 Allows time for billing programming Setup of green rate program information for customers on IID website www.iid.com 6