jaime and to cordell. she's the communication director and cordell is the chief engineering manager. >> hi, jaime thanks for being here today. >> thank you for having me. i'm excited to be here. i'm the communications direct are for clean energy and i started working on the cca effort in 2007. so i got to see a lot of the process from the early beginning when we were just forming and determining if this would be workable in marine until today. so i'll get started with telling you about more about our program. so our agency was formed in december of 2008. and when we started up, we spent about a million and a half on our initial feasibility studies determining whether or not this was going to be something that was

workable in marin and whether it was something that the customers in marin were interested in. when we launched in may of 2010, we needed $2.2 million to get off the ground. today our finances are looking really good. we've got a budget of $100 million budget and we're in net position of $8 million. we are providing service to approximately 125,000 customers in our service area which includes the county of marin but the city of richmond. the city much richmond expressed interest in joining marin clean energy a couple of years ago and we started service to richmond customers last summer, so about exactly one year ago. we're assuming 77% of the customers in our area, so in marin and richmond and the other portion of those

customers have decided to opt out and stay with -- >> say that again. >> we're serving 77% of the people in our area. and the other 77 percent opted out and remain with pch services. we have reduced by 131 million towns. we're governed by a board of directors. there are 13 directors, each representing one of the communities that we serve, so 12 of the directors are from marin communities and we have one director from the city of richmond. they all elected council member and they provide oversights of our rate and policies and customer noticing, and our power sources. we also have to report to the california energy

commission and to the cpuc regarding our power sources, and that's the cpc and to the cec. to the cpc, we provide information to them about how we implement our program and what our plan is for roll out and et cetera. so you probably have seen a slide or image like this before. this is a recap of how cca works. it's a hybrid approach between your traditional investment utilities like sacramentos or municipal utilities like p jenny. they're responsible for preparing the electricity and producing that power. p jenny do the delivery and the maintenance. they send the electricity over the wire and they do the billing and

customer services. the customer has a seamless experience when they transfer to a cca bill. the customer pays that to p jenny and they give our portion to us. >> customers in our service area actually have four choices for their power supply. they can choose pg and e which is currently 22% renewable or choose our light green product which is 55% renewable and that's the product that customers are automatically enrolled into if they don't choose another option. we offer degreen, that's 100% renewable and it's verified by green e energy. we have just announced a third option for mce which is shares which is a local solar projects built within our service area that customers are

purchase as well. >> can i - sorry. you're going to talk about that local build component. >> yes, i am. this shows our power sources between 2010 and 2013. we have contracts with approximately 12 different power suppliers and we buy our power from all over california, from oregon and washington state. we currently have 54 megawatts of new renewable energy that's being built for our customers in california and that doesn't include the local renewables that we have being built for our customers and i'll talk about that in a couple of minutes. this is a slide that shows the break down of the power resources mixed between pg and e, between our light green, 50% and our deep green, 50%. one thing that they're required to do every year in partnership with pg and e is to sent out a mailler. it

has our logo and it includes a cost comparison, a break down of the power sources and also admission compare -- comparison. we just sent this out two weeks ago to our customers. we get our renewable resources. we purchase some large hydro and we use system power as well in addition to the greenhouse gas free power that we buy. we had 39% system power unspecified as shown on that slide. all electric utilities by this unspecified power and the reason why we're buying a large portion because we said we won't enter into a contract for nuclear energy, so to make up the

other part that's not renewable or large hydro, we use the young specified power. you can see on the very bottom, there is a greenhouse admission comparison. it's cutting off on the bottom of the slide. but it's the mega watt hour. you can see the pg and e is at 445 and light green which is at 380 and 0 for deep green because it's 100 percent renewable. the question i get asked is what is it going to cost me if i switch to mce. the exciting thing is even with the highest percentage of renewable energies, it's lower. this year we're expect to save our customers $5.1 million. this is showing what the average monthly bill would cost for a customer.

light green is a little bit cheaper than what pg and e would be charging. deep green is more expensive. we charge our customers an additional penny per kilo watt. and then whole shares, the 100% local solar project which is going to come online later this year is more expensive. it's linked to a feed and turf program that we offer. so the cost of shares is the cost of what we're paying the producer in our service area to build that. it's a rate that is locked in to a 20 year term because it's directly connected to this contract so it will never exceed that amount and there's a possibility that the cost of solar shares will increase. one thing i want to point out, we're breaking the charges out between generation, delivering and pg

and e. pg and e still charge delivery, so that part doesn't change. the generation part is what changes. and pg and e adds on exit fees to our customer's bill. they're charged on a monthly basis based on the amount of electricity you use and they charge those to make themselves hole for contracts that they entered into for customers who have switched to a cca. that's important to keep in mind and when i'm telling you the total cost difference, we're keeping -- taking into account pg and e added fees as well. this is a commercial cost comparison and you can see light green and deep green is cheaper than pg and e for our average customer. and one of the other things that i think is really great about a cca program and it's a wonderful opportunity for local communities to utilize is the fact that it's a revenue generating entity and we're a

public not for profit agency so we can reinvest our rate payer dollars instead of paying it to shareholder and dividends. we invest in a variety of different projects and programs. so far we've dedicated just under $40,000 towards customer rebates. anything that we offer to our customers are an addition to anything that p and g offers. if pg and e was offering a rebate, we would offer that too. we have a really great net meter program for our customers. if you want to get the most money back for the electricity that your solar panels are giving out, you want to choose c -- we

thought it was fair if we were charging customers 100% renewal, we should pay them that. we have an annual cash out. anyone who has a $100 credit or more will get a check at the end of the fiscal year and we recently gave tens of thousands of dollars in checks back to our customers. i mentioned earlier the -- it's a standard offered purchase a greem so anyone in our service area who wants to build a solar project at one mega watt or less can enter into a contract with us. we're offering really generous incentives so 1 kilo watts. those are pictures from

the airport, and we've got several more in the pipeline for the tara. we have seven new local projects under way that's going to be built in marin and richmond totaling of 11 megawatts for our customers. we have a one mega watt carport structure that's going to be built for our customers. that was an addition to a contract we negotiated for 30 mega watt in the central valley for our customers. as apart of our negotiations we were able to get this company to build on one mega watt in our solar area. we have four new terrace in the pipeline which is exciting. one thing i didn't mention about deep green, our deep green customers who pay a penny per kilo watt -- it's put into a development fund and we're using that for the initial cost of our local project, so we've

got two local projects. mc owned and they would be partially funded by deep green customers. and there's a description of those there. some other local programs that we offer our customers are a very robust energy efficient program. the energy efficient program that we offer to our customers is funded through the public goods fun. that program was authorized to us by the california utility commission. pg and e offers the same and we're offering something as well. we offer rebates, technical assistance and we're offering an on bill repayment program for our customers who want to implement energy efficient upgrade. that's unique because we've partnered with local bank and they're

offering loans for the upgrades and they pay the loan back on our customer bills so increase a direct tide. we also have paid for the fund -- for the installation of electrical vehicle charging. we're offering a battery storage program to our immediate yaum and large commercial customers. we partnered with an organization called bidgley. and those are basically tools that give energy -- it can tell you how much the appliances are costing you. we help fund the marine green business program. it's apart of the bay area green business

program. finally i want to mention that pca create local jobs and that's something we're proud of. more than 1300 california jobs have been created through mce since we started service in 2010. i have some fliers with some in depth information about those jobs and union labor which has been a hot top he can and if you're interested, we can pass that out. we have 20 full-time employees at mce and we have venders and then we've been able to create jobs through energiy -- energy efficient program.

they're creating and supporting jobs. so that's all about mce. and i'll be happy to turn it to the next speaker. >> what has been your experience with shell. >> we partnered with shell when we first offered service and that was in 2010. we did an rfe for our energy renewable supply. at that time our board made a decision we wouldn't launch and get a minimum of 25 percent of renewable energy and shell did that. our contract with them expired in 2017 which is the reason we've been on contracts for so many suppliers. to date, shell has been a good partner for us, but we understand that some people in our community don't

-- because they provide electricity. >> you were partnering with pg and e. >> whether you're with pg and e -- >> how green is the shell product. >> shell offered -- they provide 75% of our power supply right now and so since we offer 50%, renewable on the 100% renewable they're helping to meet those targets and shell helps us to do our scheduling. >> i see. you mentioned in your testimony that the kilo watt per hour cost, i think it was in the san [inaudible] airport -- what is it for the user in that rin --

marin. 7.9. do you know the state wide? ours is 7.9 and pg and e is 9.3. >> you were saving the marin residents 7 cents per month. >> i think it's closer to 90 cents so it's less than an hour. >> it's not that hard to subtract. yeah, i can do the subtraction. >> so you allege. i'm astonished by the rights you're getting because i was with the governor of hawaii and he was saying their rates were 50 cents per kilo watts. >> they have an interesting rate. >> yeah, it's called monopoly. >> thank you so much and i wish you good luck in your work.

>> commissioner vietor. >> there was a substitution clause. >> right now our power supply is 28%, california renewable portfolio standard and meeting rps. in addition to that we purchase an additional 23% of unbundled renewable energy certificates so that gets us up to the 50% for our light green. we have that substitution clause and that's apart of the way we've been ramping down since our contract closes with them in 2017. >> you haven't shifted the rec mix but you've shifted the power providers for the moment so substitute the shell portion out? >> right. it's a work in progress as we prepare to close. >> do you plan to ramp out the

rec amount or not yet? >> we have a resources plan that our board does every year and so we release that in september. i think september of every year, so we'll be doing that sement -- doing that in september of every year. any other questions. >> i want to move to marin and sign up. >> is that your motion? >> can you stick around if we have more questions? >> oh, yes. of course. >> were you talking to me? >> yes. you got a directive from the general manager. >> yes, i will. >> how are you doing? >> good afternoon, my name is cordel and i have to correct barbara. i'm the deputy. i do not work for clean and power but i was involved in the formation of it. i'll get into that. and i'm going to skip through some of my slides because jaime covered them so

well. so we are at project timeline. i want to give you an idea of how long it took us to get up and running and our steps. we started this project in march of 2011 when the water agency authorized the feasibility study. we directed them to be as conservative as possible. we wanted to not to over promise what we can provide to our customers. we didn't want to get into a situation where we couldn't provide what we said we could. that was completed in 2011. we made outreach efforts to the commissioner and we provided commercial and resident surveys to see what the appetite. based on the surveys which were positive, we moved forward and formed a jpa in december of 2012. that jp -- that included the

water agency, but it gave us some credibility when we went forward with trying to initiative a power supply contract. we went about it differently than marin did on the power contract. i'll get into that on the next slide, but we started with an rfp in february of 2013. the gpa and the financing for our program was finalized in july of 2013 and that's when the remainder of the city joined our program and we lined up a local bank for finances. service began in may of 2014. getting back to the supply contract, initially we sent out a request to power companies. we gave them our data what what we were expecting as far as power content and they said tell us what you can do. we got 15 or 16 different companies submitted on that rfi. based on the

information received in that rfi which also included pricing, but also comments on our power purchase agreement and contractual. we got 12 serious respond ants and what that told me at that time was that power companies were starting to take them seriously. other things were working back east and in the midwest and they're trying to break into california. they understand there's a monopoly here and they want to be competitive in california. after analyzing those 12 proposals we broke it down. >> mr. president. >> was shell apart of the 12? >> shell was apart of the 12. they were not short listed. >> what was the reason? >> mainly price. >> the other --

>> not the nature of the product. >> no, not the nature of the product. it was based on price but on some of the services they could provide us, the energy efficient program. >> why do you think that marin went with them and you didn't. >> i can't comment on marin's process. jaime is here. she can answer that question. >> she wouldn't know what you went through. >> we were about four years behind. >> i'd like to tell a joke about marin. we have a friendly rivalry. >> tell a bunch. >> we have a friendly rivalry and we said they can do this and we said how hard can it be. >> but you make better beer in santa rosa. >> better wine too. >> i'll take jaime outback later. so we went to all the

cities, as there was in marin and they had some cities and it's the same in samona county. clover dale is getting ready to bring this before their council in july. the governance of our program is similar to marin clean energy. they appoint members to power authority. as i mentioned, we rolled up to 20,000 customers in may of 2013. our opt rate is 8.4 percent. we plan to roll out an additional 144 accounts in 2015 and any remaining cities that choose to join after that will roll out in 2016. so how we

got this started financially? the water agency provided a speed loan. we covered the cost of the consultant, staff time, surveys and marketing and that sort of thing between march of 2011 and january of 2013. that's a loan that ended up being $1.7 million and we'll get paid back with 3% interest on january 1st of 2015. the operating line of credit if -- the credit from where it left off is a $2.5 million operating loan from first community bank. that line of credit is guaranteed by the county of samona's treasury. the bridge loan which will pay power cost from the time we buy the power and the time we collect rates is also provided by first community bank and that's an unsecured loan. we have a 33%

renewable base product which is called clean start. it's four or five percent below pg and e. it will remain that way through the end of this fiscal year. no, calendar year. and it's available to anyone in the participating cities. we also have a 100% renewable and local product. we entered into a contract with pine kyle. it's maybe 20% more. that's available to anyone right now. we rolled out to 20,000 customers but if you want to sign up for the ever green product, you can do that. >> it's a sign up, not an opt out? >> it's a sign up program similar to marin clean up. our power sources, 33 percent renewable

based on the portfolio standard. we have 37 hydro and 30 percent natural gas -- she messengered unspecified -- our board also designated no poll or power mix. again, much like marin, we have basic comparisons of the commercial system. the numbers are obvious, four or five percent lower for our green start and for our ever green and the same for our residential system. we do have a net energy meter program and it's identical to marin and if you see something good, you copy it. so we did.

it's a privilege of being second. we're in the process of putting in a feed and turf. our price is lower than marin. more like in the 10 and a half to 11 range to see what's out there and what people can do. we do have a power contract with consolation energy. they were bidder out of our process. the energy we purchase from them drops down and we substitute that with other power contracts. i mentioned the power con track for cal pine, the ten megawatts growing to 18 megawatts over the next couple of years. we're expecting our 100 percent green program to grow and lead this 18 megawatts. we entered into a contract for 38 megawatts of power and that's in the central valley. that has been introduced into its 20 year fixed contract. we

open proposals just a couple of weeks ago for 30 megawatts. we got very good results. we expect to are contracts by the end of this year and construction by the end of 2016. excuse me. and finally we've been working on a project of up to 20 megawatts at our local airport which is in environmental review. that's the end of my presentation. everybody has a website. lots of more information there and i'm happen tea to answer questions you have. >> commissioner vietor. >> do you have a local build out plan. >> we're working on that now. we spent time getting up and running. we expect to have a draft in august and a final by of the end of the year. >> that's the goal to have that be a key component of the program? >> yes. >