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HomeMy WebLinkAboutCC_2019-06-25_MinutesCITY OF ATASCADERO CITY COUNCIL MINUTES Tuesday, June 25, 2019 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California (Entrance on Lewis Ave.) City Council Regular Session: 6:00 P.M. REGULAR SESSION — CALL TO ORDER: 6:00 P.M. Mayor Moreno called the meeting to order at 6:01 p.m. and Council Member Fonzi led the Pledge of Allegiance. ROLL CALL: Present: Council Members Fonzi, Funk, Newsom, Mayor Pro Tem Bourbeau and Mayor Moreno Absent: None Staff Present: City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Public Works Director Nick DeBar, Police Chief Jerel Haley, Community Development Director Phil Dunsmore, City Attorney Brian Pierik, Deputy City Manager/City Clerk Lara Christensen, Police Lieutenant Jason Carr and Senior Planner Callie Taylor APPROVAL OF AGENDA: MOTION: By Mayor Pro Tem Bourbeau and seconded by Council Member Funk to: 1. Approve this agenda; and, 2. Waive the reading in full of all ordinances appearing on this anon agenda, and the titles of the ordinances will be read aloud by the City Clerk at the first reading, after the motion and before the City Council votes. Motion passed 5:0 by a roll -call vote. Atascadero City Council June 25, 2019 Page 1 of 6 PRESENTATION: 1. Community Choice Energy Presentation by Monterey Bay Community Power J.R. Killigrew, Director of Communications, for the Monterey Bay Community Power Authority gave the presentation and answered questions from the Council (Exhibit A). PUBLIC COMMENT: The following citizens spoke on this item: Eric Greening, Dave Walters, Jason Anderson, Edward Vek, Peter Burne, Maria Kelly, Ellen Beraud, Janice Petko, Heather Howell, Scott Lewis, Rita Casaverde and Brian Auger. Following discussion by the Council, it was determined to place this item under Individual Determination for the Mayor at the July 9, 2019 City Council Meeting and at that time, decide whether or not to agendize participation in Monterey Bay Community Power's Community Choice Aggregation Program for the August 13, 2019 Meeting. Mayor Moreno closed the Public Comment period. A. CONSENT CALENDAR: 1. City Council Draft Action Minutes — June 11 2019 ■ Recommendation: Council approve the June 11, 2019 Draft City Council .... Meeting Minutes. [City Clerk] 2. May 2019 Accounts Payable and Payroll ■ Fiscal Impact: $2,092,698.05 ■ Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for May 2019. [Administrative Services] 3. 2019-2020 Citywide SalarV Schedule ■ Fiscal Impact: None. ■ Recommendation: Council approve the new Salary Schedule for Fiscal Year 2019-2020. [City Manager] MOTION: By Mayor Pro Tem Bourbeau and seconded by Council Member Fonzi to approve the Consent Calendar. Motion passed 5:0 by a roll -call vote. UPDATES FROM THE CITY MANAGER: City Manager Rachelle Rickard gave an update on projects and issues within the City. COMMUNITY FORUM: The following citizens spoke during Community Forum: Ellen Beraud and Eric Greening Mayor Moreno closed the COMMUNITY FORUM period. Atascadero City Council June 25, 2019 Page 2 of 6 Mayor Moreno recessed the meeting at 7:46 p.m. Mayor Moreno reconvened the meeting at 7:56 p.m. with all present. B. PUBLIC HEARINGS: Ordinance to Repeal and Replace Title 6 Chapter 6 "No -Smoking Areas Established in Certain Public Places" and Repeal Title 10, Chapter 1 Section 10-1.34 "Smoking and Tobacco Products" ■ Ex -Parte Communications: ■ Fiscal Impact: None. ■ Recommendation: Council introduce, for first reading by title only, Draft Ordinance repealing and replacing Title 6, Chapter 6 "No -smoking areas established in certain public places" of the Atascadero Municipal Code and deleting in its entirety Title 10, Chapter 1, Section 10-1.34 "Smoking and tobacco products". [Police Department] Ex ParteCommunications: Council Member Funk and Mayor Moreno both reported speaking with Wendy Lewis from ECHO regarding smoking. All other Council Members reported having nc communications on this item. Lieutenant Carr gave the staff report and answered questions from the Council. Chief Haley and City Manager Rickard also answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: Alicia Moore, Julie Jones, Kelly Pywtorak, Jayden Hoff, Alex Hall, Sean Hall (Exhibit B), and Steve Jones. Mayor Moreno closed the Public Comment period. Following comments from the public and discussion by the Council, the Council requested that adjustments be made to the Draft Ordinance as presented at the Council Meeting and be brought back to the Council for introduction. MOTION: By Mayor Moreno and seconded by Council Member Newsom to continue the Public Hearing to July 9, 2019 and direct staff to return to Council for further discussion and introduction of the Draft Ordinance. Motion passed 5:0 by a roll -call vote. 2. Planned Development Amendment for the Principal Mixed-use Project — PLN 2014-1519 • Ex -Parte Communications: ■ Fiscal Impact: If the project is approved for processing, it should be required to be fiscally neutral so the added residential units fund their fair share of impacts to City police, fire, and parks services. ■ Recommendations: Council: 1. Adopt Draft Resolution A, certifying Mitigated Negative Declaration No. 2019-0002 based on findings. Atascadero City Council June 25, 2019 Page 3 of 6 2. Adopt Draft Resolution B, approving a General Plan Land Use Diagram Amendment to change the designation of Lot 62 adjacent to EI Camino Real _ from Medium Density Residential to General Commercial based on findings. 3. Introduce for first reading, by title only, Draft Ordinance approving Title 9 Zone Text Amendments to the Planned Development Overlay Zone #24 (PD -24) and changing the zoning of Lot 62 from RMF -10 to CR based on findings. 4. Adopt Draft Resolution C, approving a Conditional Use Permit (2019 Master Plan of Development) and Vesting Tentative Subdivision Map (Tract 3070) based on findings and subject to Conditions of Approval and Mitigation Monitoring. [Community Development] Ex Parte Communications Mayor Pro Tem Bourbeau, Mayor Moreno and Council Member Fonzi reported speaking with the applicant. Council Members Funk and Newsom reported having no communications on this item. Community Development Director Dunsmore and Senior Planner Taylor gave the staff report and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: Royce Eddings and Barry Ephraim Mayor Moreno closed the Public Comment period. MOTION: By Mayor Pro Tem Bourbeau and seconded by Council Member Fonzi to: 1. Adopt Draft Resolution A, certifying Mitigated Negative Declaration No. 2019-0002 based on findings. 2. Adopt Draft Resolution B, approving a General Plan Land Use Diagram Amendment to change the designation of Lot 62 adjacent to EI Camino Real from Medium Density Residential to General Commercial based on findings. 3. Introduce for first reading, by title only, Draft Ordinance approving Title 9 Zone Text Amendments to the Planned Development Overlay Zone #24 (PD -24) and changing the zoning of Lot 62 from RMF -10 to CR based on findings. 4. Adopt Draft Resolution C, approving a Conditional Use Permit (2019 Master Plan of Development) and Vesting Tentative Subdivision Map (Tract 3070) based on findings and subject to Conditions of Approval and Mitigation Monitoring amended as follows by the Council: • Modify affordable housing requirements to be 3 low- and 1 moderate- income units in the stacked flats with an accompanying payment of $16,000 for each of the remaining 2 units that is required under the Ordinance. • Add a condition that all streets within the development be appropriately marked and/or signed, at staff's discretion, as no parking zones. Atascadero City Council June 25, 2019 Page 4 of 6 Deputy City Manager/City Clerk Christensen read the title of the Ordinance: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AMENDING TITLE 9, ARTICLE 28, PLANNED DEVELOPMENT OVERLAY DISTRICT #24 AND THE OFFICIAL ZONING MAP 9105, 9107, 9109 PRINCIPAL AVENUE/ 9300 PINO SOLO AVENUE (APNS 030-499-001, 013, 019, 020) ECR PRINCIPAL, LLC Motion passed 5:0 by a roll -call vote. (Resolution Nos. 2019-058, 2019-059 and 2019-060) Mayor Moreno recessed the meeting at 10:30 p.m. Mayor Moreno reconvened the meeting at 10:40 p.m. with all present. C. MANAGEMENT REPORTS: 1. Del Rio. Road 1 US 101 Interchange Traffic Sensitivitv Analvsis ■ Fiscal Impact: The current agreement with Wallace Group for Phase 2 (PAED) work has a remaining balance of approximately $450,000. If alternative improvement designs are appropriate for future traffic demands, there is a potential savings exceeding $10 million. ■ Recommendations: Council: 1. Receive and file Traffic Sensitivity Analysis for the Del Rio Road Interchange Report. 2. Direct staff to pause work on the current roundabout design for the Del Rio Road Interchange Project and amend the current agreement with Wallace Group to evaluate alternative interchange and corridor improvements that are consistent with traffic needs from anticipated development in the vicinity. [Public Works] Public Works Director DeBar gave the staff report and answered nuestions from the Council. On motion by Mayor Pro Tem Bourbeau and seconded by Council Membe: Fonzi the Council voted 5:0, by roll call, to continue the meeting past. 11:00 p.m. PUBLIC COMMENT: The following citizens spoke on this item: None. Mayor Moreno closed the Public Comment period. Atascadero City Council June 25, 2019 Page 5 of 6 MOTION: By Council Member Newsom and seconded by Council Member Funk to: 1. Receive and file Traffic Sensitivity Analysis for the Del Rio Road Interchange Report. 2. Direct staff to pause work on the current roundabout design for the Del Rio Road Interchange Project and amend the current agreement with Wallace Group to evaluate alternative interchange and corridor improvements that are consistent with traffic needs from anticipated development in the vicinity. Motion passed 5:0 by a roll -call vote. D. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS: The following Council Members made brief announcements and gave brief update reports on their committees since their last Council meeting-. Mayor Moreno 1, County Mayors Round Table Mayor Pro Tem Bourbeau 1. Integrated Waste Management Authority (IWMA) Council Member Fonzi 1. Air Pollution Control District omft Council Member Newsom 1. Visit SLO CAL Advisory Committee E. INDIVIDUAL DETERMINATION AND 1 OR ACTION: None. F. ADJOURN Mayor Moreno adjourned the meeting at 11.15 p.m. M 4�riGt7ense - ity Manager ity Clerk The following exhibf are available for review in the City Clerk's office: • Exhibit A — Monterey Bay Community Power literature • Exhibit B -- Handouts regarding tobacco APPROVED: July 9, 2019 Atascadero City Council June 25, 2019 Page 6 of 6 � VAL-A� -IML- City Council Minutes Exhibit A J.R. Killigrew Director of Communications & Energy Programs o: (831) 641-7239 m: (310) 488-7631 jkiliigrew@mbcp,org 4Q MontereyBay Community Power Tom Habashi Chief Executive Officer o: (831) 641-7215 m: (831) 313-5557 thabashi@mbcp.org MontereyBay Community Power r'xi► ;c Cleaner energy at a lower cost. Monterey Bay Community Power (MBCP) is a not-for-profit agency established by our own communities in 2018 to: Control electricity costs Reduce greenhouse gas (GHG) emissions Contribute to the economic vitality of the Monterey Bay region By sourcing cleaner, more affordable electricity for Monterey, San Benito and Santa Cruz counties MBCP has already made significant progress in these areas. And beginning January 2020, the cities of San Luis Obispo and Morro Bay will be joining MBCP. 2018 ACCOMPLISHMENTS in cost savings delivered through rebates of GHG emissions avoided secured for local energy programs t f While investor-owned utilities pass profits onto shareholders and investors, MBCP reinvests surplus revenues in the communities that it serves through cost savings, energy programs and renewable energy projects. op r 1110 cal, Not-Forrofit Electricity Provider 11. Small changes to your bill — big changes for our community. Committed to providing cleaner energy at a lower cost, MBCP replaces PG&E's role in determining how and where your electricity is generated; MBCP sources electricity exclusively from carbon -free and renewable energy sources. PG&E will continue delivering electricity and maintaining electric infrastructure along with billing. In addition to delivering a cost savings through the MBCP rebate, MBCP supports regional economic vitality by reinvesting surplus revenues through energy programs and renewable energy projects. Carbon -Free Same Reliable Community & Renewable Service Choice Energy ■ E 4%_A_A_.J 4 ��) WIN Electric Electric A Greener Generation Delivery Option MBCP adds PG&E provides Choose MBCP for clean energy to transmission, cleaner energy, the grid repairs, billing stable prices and and service local jobs SERVICE OFFERINGS m MBCP Energy Programs are 0 4QMBchaice Z designed to assist our business m and residential communities with C Because MBCP is now tri -county's the switch from fossil fuel -powered �] primary electricity provider, homes sources to clean -energy alternatives. and businesses are automatically Together, we are energizing In enrolled in MBchaice, supporting economic and environmental reinvestment in our community as progress for our region. well as carbon -free energy sources 0 such as wind, solar, and hydroelectric. -- Project5unshine r MBprim( 0 In partnership with GRID M MBCP`s 100% renewable energy Alternatives, MBCP launched Lf) offering supports cleaner air Project Sunshine to provide and cooler oceans. Powered funding for income -qualified exclusively from wind and solar, > homeowners to receive no -cost MBprime supports eligible solar installations on their homes. renewable energy sources for an extra cost of $.01 per kw/hour. MBCP and the Monterey Bay REBATE OPTIONS Am Air Resources District (MBARD) 4Q, MBshare are teaming Share your rebate by paying it forward up to provide major incentives and savings for electric vehicle in support of low-income rate payers purchases and leases through the and the Community Foundations in Monterey Bay electric Vehicle San Benito, Santa Cruz and Monterey Incentive Program (MBeVIP). counties. MBshare donations are tax deductible. 4QMBgreen+ EVInfrastructure go Green your rebate by paying it Businesses interested in forward in support of local renewable accelerating the rate of electric energy resources for our community. vehicle adoption in our region can plug into millions of dollars 40 MBkeep in funding dedicated to the buildout of charging stations in No action is needed to keep your rebate the Monterey Bay region. and receive it as a credit on your bill. Energy Programs: Part of a larger MBCP energy solutions initiative. As a not-for-profit electricity provider, Monterey Bay Community Power is uniquely positioned to research, explore, pilot and launch innovative, scalable programs to accelerate the electrification of the Monterey Bay region and California's Central Coast. WHY ELECTRIFY? With today's clean and renewable energy sources, generating electricity on a utility scale is no longer the source of endless pollution that it used to be. Today, getting more electric cars on the road and more homes, buildings and industrial sites off natural gas and onto electricity powered by clean -energy sources like wind, solar and hydroelectric presents an opportunity to potentially eliminate carbon emissions altogether. _0 look_ 1 Monterey Bay Community Power Speak with a Local Energy Advisor: 888-909-6227 {MBCP} 70 Garden Court Suite 300 Monterey, CA 93940 831-641-7222 info@mbcommunitypower.org mbcp.org Mix Pnp�f M1v� FSC mpawer awus FSC C104M OPF MBCP ENERGY Navig, Clean Energy Funding and Resources for Commercial and Residential Customers Monterey Bay Community Power Together we are energizing economic and environmental progress for our region. As your local not -far -profit electricity provider, MBCP returns ratepayer money to our community through rebates and energy programs. MBCP Energy Programs provide funding and resources to support the economic vitality of the Monterey Bay region as well as the growth of clean -energy resources. COMMITTED To REDUCING GREENHOUSE GAS (GHG) EMISSIONS MBCP Energy Programs target the transportation and building sectors to provide the greatest impact on reducing GHG emissions. Commercialll n dustrial 29% Monterey Bay Greenhouse Gas Emissions by Sector Five -Year Energy Programs Road Map MBCP is building a comprehensive electrification strategic plan which will culminate in a five-year energy programs road map designed to prioritize aggressive emission reductions while driving local economic development and stable, low electricity rates. In addition, as the region's transportation and building sectors switch from fossil -fuel energy sources to clean -energy sources, the program road map will aim to address community emergency preparedness and resiliency during times of power outages. Monterey Bay Community Power No -Cost Solar for Income -Qualified Homes Projcct5unshiner* In partnership with GRID Alternatives, MBGP launched Project Sunshine in spring 2019 to provide funding for 20 income - qualified homeowners to receive no -cost solar for their homes. These homeowners will also save thousands of dollars in electricity costs by utilizing solar energy. In addition to helping low-income communities and supporting the growth of renewable energy, Project Sunshine connects people to clean energy jobs by incorporating workforce development into each project. Trainees can participate in the installation process from start to finish for a full picture of industry opportunities. Project Sunshine is available for a limited time exclusively for low -to -moderate income homeowners, and the application process is already underway. To see if your household qualifies for the program, please visit www.gridsolar.org or call 831-784-8549. Speak with a Local Energy Advisor 888-909-6227 (MRCP) 70 Garden Court Suite 300 Monterey, CA 93940 831-641-7222 info@mbcornmunitypower.org mbcp.org Monterey Bay Community Power Get Plugged In!... .,,To over $1 million in incentives available through Monterey Bay Electric Vehicle Incentive Program (MBeVIP) MBCP and the Monterey Bay Air Resources District (MBARD) are teaming up to provide major incentives for electric vehicle (EV) purchases and leases this year through their Monterey Bay Electric Vehicle Incentive Program (Monterey Bay eVIP). A PHASE 1 Buy Local: May 1 - July 31, 2019 Buy Local offers significant discounts off MSRP plus additional MBCP-funded incentives on EVs purchased from participating, local dealers on select manufacturers and models for MBCP customers. • Apply for your incentive at mbcp.org $4,500 for income -qualified MBCP customers $3,000 for non-profit and public agency MBCP customers $1,000 for all other MBCP customers MBCP customers can apply for and redeem their incentive certificate any time between May 1 and July 31, 2019 • Visit one of our participating dealers to redeem your MBCP incentive certificate and take advantage of the dealership's EV discounts exclusively for MBCP incentive certificate holders Cardinale Nissan 1661 Del Monte Blvd Seaside, CA 93955 Eligible Models Nissan LEAF 2619, Nissan LEAF Plus 2019 Greenwood Chevrolet 270 San Felipe Rd Hollister, CA 95023 Eligible Model: 2019 Bolt Santa Cruz Volkswagen 1616 Soque! Ave Santa Cruz, CA 95062 Eligible Model: Volkswagen e -Golf 2019 Questions? Contact us at 'QMonterey Bay programs@mbcp.org or 888.909.MBCP (6227) Community Power See backside for Phase 2 information MBCP and the Monterey Bay Air Resources District (MBARD) are teaming up to provide major incentives for electric vehicle (EV) purchases and leases this year through their Monterey Bay Electric Vehicle Incentive Program (Monterey Bay eVIP). A PHASE UKA� Your Choice, Your Terms: August 1 until funds run out Your Choice, Your Terms offers any tri -county resident the opportunity to apply for MBARD funded incentives for any used or new alternative fuel vehicle of their choice from any dealer throughout California. • Apply for your incentive at mbard.org - $1,500 for new hydrogen fuel cell vehicle $1,000 for new battery electric vehicle - $500 for new plug-in hybrid electric vehicle $750 for used battery electric vehicle - $300 for used plug-in hybrid electric vehicle - $200 for new electric motorcycle *Income -qualified customers receive double incentive value **MBARD incentives pending 2019-2020 budget approval • Tri -county residents can apply for and redeem their incentive certificate anytime after August 1, 2019 until funds run out Questions? Contact MBARD at MontereyBayAir aromero@rnbard.org or call 831.647.9411 Resources District Protect the Planet V Save Money Enjoy the Ride! Speak with a Local Energy Advisor 888-909-6227 {MBCP} 70 Garden Court Suite 300 Monterey, CA 93940 831-641-7222 info@rnbcommunitypower.org mbcp.org MontereyBay Community Power M. 20 income -qualified homeowners to receive free solar for their home in 2019. Homeowners will also save thousands of dollars in electricity costs using solar energy, MBCP's Solar Program for Affordable Housing is available for a limited time exclusively for low -to - moderate income homeowners, and the application process is already underway. To see if your family qualifies for the program, please call 831-784-8549. MBCP Electric Vehicle (EV) Incentives Program Available Spring 2019, MBCP is offering EV incentives. Currently, EVs make up only 1% of all vehicles in the Monterey Bay Region. In order to meet statewide goals and continue shaping the Central Coast as an innovative leader in sustainability, our region's EV ownership must grow to 15% by 2030. For more about the EV Incentives Program, look for preliminary information on www.mbcp.org beginning in February. Electric Vehicle (EV) Infrastructure Program Beginning Summer 2019, Tri -County non-residential customers who are considering installing or upgrading EV charging stations will have access to valuable resources and incentives. Businesses interested in accelerating the rate of EV adoption in our region - through accommodating locals who live and work sustainably, as well as visitors who travel and stay sustainably - are encouraged to contact MBCP at programs@mbcp.org or visit www.mbcp.org to learn more. 4—Ql Monterey Bay Community Power 70 Garden Court, Suite 300, Monterey, CA 93940 info@mbcommunitypower.org (888) 989--6227 (MBCP) MBCommunityPower.org 111113©D G{.VI IVIi II►.. MILRLL%Y VI %I iG R-1h%I 11Li.1 GY L/RY F�tj 1~1 S. Together, by providing businesses and residents with carbon -free electricity, our community has taken a big step toward continued economic and environmental progress for our region. Plus an additional $5 million secured for the Monterey Bay Region from the California Energy Commission for California Electric Vehicle Infrastructure Project tCALeVIP] Powering Clean Energy Programs Through education and financial incentives, MBCP's Energy Programs are designed to assist our community with the switch from fossil fuel -powered sources to clean energy alternatives. Monterey Bay Greenhouse Gas Emissions by Sector ni Transportation Co mm erc is i/l nd u str is I Residential Sol id Waste Waste Water Based on greenhouse gas (GHG) emissions measures, focusing our programs on the transportation and building sectors will provide the greatest impact in reducing GHG emissions. 1 Over Stimulated Local Economy • Potential for 20 MW of local renewable generation • Employed 19 staff members, working and mostly living locally • Supported the move of MBCP's data management service energy advisors to our Monterey offices creating a local call center ■ Executed $450k in contracts with local businesses • Hosted Cal -CCA 2018 Annual Meeting at the Asilomar Conference Center, bringing over 300 clean energy industry leaders to the Monterey Bay Region ■ Sponsored and supported over 140 community events and organizations • Secured $5 MM in EV infrastructure funding for the Monterey Bay region via the California Energy Commission's CALeVIP program. • $825K for EV rebates and $100K for low-income solar installations SERVICE OFFERINGS: AWBchoice` MBCP's carbon -free default service offering guarantees rates that match PG&E and delivers a cost savings through a 3% rebate on MBCP charges, delivered in December for 2018 and bi-annually in June and December for 2019 and beyond. SMB b-irne MBCP's 100% renewable energy service offering for an extra cost of $.011kWh to support California's 100% re- newable energy goals, plus a cost savings through a 3% rebate on MBCP charges, delivered in December for 2018 and bi-annually in June and December for 2019 and beyond. REBATE OPTIONS - Keep or Donate: 4iMBgreen+ Green your rebate by redirecting it to fund the development of local renewable energy projects that benefit the tri -county community. 4"w",NlBshare Share your rebate by redirecting it in the form of a tax-deductible donation to fund local programs that support low-income ratepayers and greenhouse gas reduction efforts. 'MWMontereyBay Community Power 70 Garden Court, Suite 300, Monterey, CA 93944 info@nibcommunitypower.org (888) 909-6227 (MBCP) MBCommunityPower.org 91130 Monterey Bay Community Power (MBCP) opened its doors in January 2018 with three primary goals in sight: reducing greenhouse gas emissions, providing cost stability and savings, and supporting the economic vitality of Monterey, San Benito and Santa Cruz Counties. Thanks to overwhelming support from our business and residential communities, and to many renewable energy and community advocates, MRCP has been able to meet and exceed many of our goals. As we share some successes from our first year of operation, we hope that the communities we serve share in these accomplishments — we couldn't have done it without you! Affordable Rates and Community Re -Investment • 3% Rebate to all customers - over $4 million delivered as bill credits in 2018 • Solar customers received a 150% increase in Net Surplus Compensation (NSC) rates • 2% of gross revenue set aside for local customer energy programs - $1.25 million for MBCP customers in 2019 • Over 300 voluntary customer enrollments to MBprime, MBshare and MBgreen+ Reduced Greenhouse Gas (GHG) Emissions ■ MBchoice: Carbon free electricity provided to all MBCP customers through our default service offering • MBprime: 100% eligible renewable service offering created for customers with higher renewable energy standards • An estimated 300,000 metric tons of GhG reduced • 90 Megawatt (MW), 15 -year new renewable wind project to meet 10% of MBCP Annual demand ■ 125 MW Solar + 38 MW Storage in Kern & Kings Counties powering 32,000 homes annually Over What Does MBCP Mean for the Business Community? By the Numbers ■ 96% of the tri -county business community is enrolled with MBCP ■ More than 50% of MBCP's projected rebate dollars will go to the tri -county business community, totaling almost $2MM after fust seven months of service. Rebate dollars are expected to double in 2019 ■ Thetri-countybusiness community— including agriculture—accounts for approximately 60% of MBCP`s electricity demand Our Commitments to the Business Community ■ Carbon -free electricity — cleaner energy at a lower cost ■ MBCP matches PG&E rates and delivers cost -savings through a 3% rebate on MBCP charges ■ Quantifiable, marketable commitments to clean energy, community and the economic vitality of the Monterey Bay region ■ Local control and local access to direct customer support, from billing to supporting renewable energy project development RENEWABLE ENERGY SAME RELIABLE SERVICE COMMUNITY CHOICE EIetit ric '1771 r' ;"iari Electric Delivery A Greener option MBCP acids clean PG&E provides transmission, Choose MBCP for energy to the grid repairs, billing and service cleaner energy, stable prices, local jobs Future Programming Opportunities for the Business Community MBCP sets aside funds each year for local energy programs focused on transportation electrification, building electrification and distributed energy resources. MBCP aspires to support local businesses in these areas to help provide a competitive advantage and continue re -investing MBCP revenues locally. • EV incentives for All Vehicle Types • EV infrastructure for Level 2 and DC Fast Chargers ■ Building Electrification ■ Energy Storage • Distributed Energy Resources Rate Guarantees ■ MBCP Fixed Rate Agreement: For customers seeking greater certainty on rates, the Fixed Rate Agreement guarantees a 2% discount on PG&E rates —at comparable MBCP rate/tariff schedule — with a reduced MBCP rebate of 1% (as cornpared to 3% for other MBCP customers), for a period of 1 to 3 years. SERVICE OFFERINGS: MBchoice M BCP's carbon -free default service offering guarantees rates that match PG&E and delivers a cost savings through a 3% rebate on MBCP charges, delivered in December for 2018 and bi-annually in June and December for 2019 and beyond. SMB MBCP's god°Io renewable energy service offering for an extra cost of $-01/kWh to support California's 100% re- newable energy goals, Plus a cost savings through a 3% rebate on MBCP charges, delivered in December for 2018 and bi-annually in June and December for 2019 and beyond. REBATE OPTIONS. 4QMBgreen+ Green your rebate by redirecting it to fund the development of local renewable energy projects that benefit the tri -county community. Monterey Bay Conir' utilty Power 4 -wk Wshar>e Share your rebate by redirecting it in the form of a tax-deductible donation to fund local programs that support low-income ratepayers and greenhouse gas reduction efforts. 70 Ciarden Court Suite 300, Monterey, CA 93,940 info @-r.he-. rnrrir.Initypov'mi .,_arra (888) 909-62.27 (MB(7) MBCommunityPowcr.org ;i©® Monterey Bay Community Power (MRCP) is your new locally -controlled electric generation service provider for all residential customers in Monterey, Santa Cruz, and San Benito Counties starting in July 2018. As a not-for-profit public agency, surplus revenues are reinvested in the Tri -County region, Community Choice Energy (CCE) allows communities to buy clean -source power at a lower cost than PG&E, while retaining PG&E's role in maintaining power lines and providing customer service. Profits that once went to PG&E shareholders will be returned to MBCP customers, who can choose to receive a rebate or reinvest their rebate in local nonprofits and renewable energy projects. MRCP is the 12th CCE to go live in California. CaICCA projects that over 50% of customers are expected to receive clean power from a CCE by 2020. MBCP is committed to providing all customers with options to receive clean power at greater savings, along with an exceptional customer experience. We are elated to be working closely with the solar community; including residents, businesses and solar providers in our Tri -County region. NET ENERGY METERING (NEM): Monterey Bay Community Power will automatically enroll solar customers into our complementary NEM program. MBCP will match PG&E's rates and time of use hours and you will receive a 3% rebate on any generation charges. Your NEM 1.0 or 2.0 status will also remain unchanged, and you will receive the same value for the energy you send back to the grid. ENROLLMENT: When a solar customer enrolls with MBCP, PG&E will automatically true -up their NEM balance. To minimize any potential disruption or foss of value in dollar credits from NEM, MBCP has created special NEM enrollment times: Four Additional Enrollment Times for NEM Customers: NET SURPLUS COMPENSATION RATES: MBCP believes that PG&E does not adequately compensate net -generator NEM customers for the value of their surplus energy. Therefore, we have significantly increased the Net Surplus Compensation (NSC) rate and will pay all net - generator NEM customers more for their surplus energy. As of Feb. 2018, PG&E customers were paid a wholesale rate of just $.02793 for each kWh of surplus energy. MBCP is more than doubling that rate to $.06135. PG&E changes them- NSC rate monthly. MBCP is adding more consistency to the NSC rate equation by committing to an annual NSC Fate. A note on NSC: Most NEM customers are not net -generators of electricity and still draw power from the grid. These customers will receive the same lower total cost for power that all MBCP customers receive. MBCP will return a percentage of all generation charges back to customers as a rebate. The rebate value has been set at 3% for 2018, and NEM customers will receive this rebate as a bill credit during their annual true -up. Net Surplus Compensation Rates $.02793 IkWh Monterey Bay Community Power Monterey Bay Community Power looks forward to working with the Tri -County solar community, collaborating on program development, continuing to reduce greenhouse gas emissions and customer electricity costs. SERVICE OFFERINGS: 4Q MBchoice Electricity from all carbon - free sources, matched to PG&E`s prices, with a 3% rebate on MBCP charges. Producing ZERO pounds of CO2/Megawatt hour. -m. MB 100% Eligible Renewable electricity matched to PG&E's prices, plus 1 penny/kwh with a 3% rebate on MBCP charges. Producing ZERO pounds of CO2/Megawatt hour. REBATE OPTIONS: Q,MBgreen- Green your rebate: direct your 3% rebate to local investment in renewable energy resources Monterey Bay Community Power O MBshare Share your rebate: donate your 3% rebate to local programs serving low-income ratepayers and/or GhG reduction efforts 70 Garden Court, Suite 300, Monterey, CA 93940 info@mbcommunitypower,org (888) 909-6227 (M$CP) MBCommunityPower.org 1302 Important News from Our Community Many residents of Monterey, San Benito and Santa Cruz Counties have been solicited by alternative electric or gas energy providers promising lower rates. Some of these for-profit energy providers are going door-to-door, taking advantage of our residents and they are confusing our community about our own focal, not-for-profit electricity provider, Monterey Bay Community Power. _ About Monterey Bay Community Power MBCP was established by our own communities to source clean energy for Monterey, San Benito and Santa Cruz Counties while retaining PG&E's role delivering power and maintaining infrastructure. MBCP supports tri -county economic vitality by: providing cleaner energy at a lower cost, supporting low-income rate payers, and funding local energy projects. NOTE: if your energy bill has gone up, it is NOT due to MBCP. MBCP matches PG&E rates and provides a cost savings through a 3% rebate. Many energy bills increase during winter months because of increased gas/electricity use, as well as higher PG&E gas rates. MBCP is: • The tri -county's new electricity provider, as decided by our own cities and counties • A local, not-for-profit public agency • Providing a cost -savings to all customers when compared to PG&E ■ Overseen by our own elected officials • Transparent, accountable; all MBCP board meetings are open to the public • A proven concept that follows the Community Choice Energy model • One of 20 Community Choice Energy agencies serving California communities ■ Designed to benefit our own community, not investors or shareholders • Committed to clean and renewable energy like wind, solar and hydroelectric MBCP is NOT; • An extra charge on your bill - you've always paid Electric Generation Charges, they were hidden inside PG&E Bundled Service Charges prior to MBCP • Taxpayer funded nor a private business • A for-profit, investor-owned utility like PG&E or other alternative energy companies • A new, short-term solution or experiment • A gas provider; MBCP only provides electricity generation • Affected by PG&E bankruptcy • Doing anything with surplus revenues other than building reserves and reinvesting in our tri -county • Contributing to greenhouse gas emissions or the harmful effects of climate change • Supporting a private agenda - all meetings, guiding documents and principles are public Over Noticias Importantes Sobre Nuestra Comunidad Muchos residentes de los condados de Monterey, San Benito y Santa Cruz han silo solicitados par proveedores de energia electrica o de gas que prorneten tarifas mas baias. Estos proveedores de energia con fines de lucro van de Puerta en Puerta, aprovechandose de nuestros residentes. Monterey Bay Community Power es el nuevo proveedor de electricidad sin fines de lucro y nunca le hara solicitudes domiciliarias. ZQuien es Monterey Bay Community Power? MRCP fue establecido por funcionarios electos con la meta de obtener energia limpia para los condados de Monterey, San Benito y Santa Cruz. PG&E aun seguira con el surninistro de energia y el mantenirniento de la infraestructura. MBCA respalda la vitalidad econornica de los tres condados a]: proporcionar energia mas limpia a un costo mas bajo, el apoyar a la comunidad de bajos ingresos y el financiar proyectos locales. ATENCiON: Si su factura de energia ha aurnentado, NO se Bebe a MBCP. Muchas facturas de energia aumentan durance los ureses de invierno debido a un mayor use de gas/electricidad. MBCP iguala las tarifas de PG&E y proporciona un ahorro a traves de un reembolso del 3°lam. MBCP ES UNA AGENCIA: MBCP NO ES: • Clue prove electricidad a los Cres condados Un cargo adicional en su factura - siempre ha de Monterey, Santa Cruz y San Benito pagado el cargo de generation electrica, oculto en un paquete cobrado por PG&E antes de • Sin fines de lucro MBCP. • Supervisada por funcionarios electos • Financiado por contribuyentes • Transparente. Todas nuestras reuniones en Empresa privada gobernada por inversionistas relation con MBCP son abiertas al publico tomo PGH u otras companias de energia. • Que sigue el modelo estatal "Community Choice Energy" y una agencia entre 20 por todo el estado que siguen este modelo reconocido por su liderazgo ambiental. • Disenada para beneficiar a nuestra propia comunidad, no a los inversionistas. • Comprometida a la energia limpia y renovable con fuentes solares, eblicas e hidroelectricas. • Clue ofrece ahorros de costos a todos nuestros clientes en los tres condados. • Un experimento a corto plazo • Un proveedor de gas; MBCP solo proporciona electricidad • Afectado por la reciente declaracidn de bancarrota par parte de PG&E • Una agencia con inversionistas. MBCP se dedica a reinvertir en la comunidad. • Una agencia electrica que contribuye a las emisiones de gases de efecto invernade-ro o los electos nocivos del cambio climatico • Una agencia que respalde una agenda secreta. Todas la reuniones y documentos son publicos Monterey Bay Com m u n ity Power ADO, i\/Iorl rey, E -r. :�-:+_ Ir,r Lei;;-_.. )r':?.,"!_:c .iL',':;�r.C:r�� j.. s5 r ?'J J �! ,i/!�'..�-r MBC0MI- nLMityPa, er.org 9J©® CCA; PUTTING RENEWABLE ENERGY ON THE MAP Community Choice Aggregation (CCA) programs have contracted for more than 2,000 Megawatts (MW} of new Clean generation capacity, largely through power purchase agreements with terms of 10 years or more, fueling renewable energy development, green jobs and economic growth throughout California. Marin County ` 12 . 5 Megawatts 5 T 3 PDAs 1N 5 Mid 6 MLN 1� Stanislaus Co Kings County dip 393 Megawatts Solar 6 PPAs Irk 150 MW Snlar, 45 MWE)80 MWh Z PPAS Kern County 190 Megawatts Wind 4 PPAs 11128 MW Solar, 40 MW/160 MWh Storage 2 PPAs Mendocino County 1 !Megawatt Solar Sonoma County a=�5 Megawatts Solar PPAs apa County 6 Megawatts Solar 6 PPAs Placer County 4.8 Mega4vatts Biogas 1 PPA a.81,fLii Solana County 1 .6 Megawatts Biogas Contra Cosa County 1 PPA J.' 13.5 Megawatts Satar — - I 4 PPAs 13.6 MW Alameda County 126 kleg awatts Wind 1?6 MW 50 W." 2 Peds Santa Barbara County 100 100 Megawatts Wind MW 1 PPA ALCCA HtI ■ Solar` ■ Wind Biogas Wind and Solar* May also Include energy storage Los Angeles County ` 2; 5 Hegawars 5alar 3 PFA5 318 MW Riverside County "R•'30 meo__zwans 52i4r f FFA Merced County vr' ?:5 tleproat_s Soi tr State of New Mexico �'�^ �'.aah•atts ti4ir.0 PDA,. . Size Resource Provider/ Start PPA Term CCA (MW) Technology Project Name Location Date (Years) MCE 99 Wind EDP Renewables,'Risina Tree III Mojave, Dern County 2015 3.5 MCE 42 Wind Terra-Gen/Voyager Wind III Mojave, Kern County 2018 12 NICE 125 Wind Terra•Gen/Los Banos Wind Los Banos. Merced County 2018 12 MCE 100 Wind BayWa r. e. Wind, LLC/Strauss Wind Lompoc. Santa Barbara County 2020 15 SCP 46 Wind Next Era/Golden Hills North Livermore, Alameda County 201; 20 SCP SO Wind sPower/Sand Hill C, LLC Alameda County 2021 20 LCE 2 Wind 3 Phases Renewables/Tehachapi Pass Wind Kern County 2015 3 CPSF 47 Wind Terra-GenAVoyager IV Expansion Mohave, Kern CQurrty 2020 t S MBCP/SVCE 200 Wind Duran Mesa, LLC/Corona Wind Project New Mexico 2021 13 Size Resource Provider/ Start PPA Tern) CCA (MW) Technology Project Name location date (Years) NICE I Sa1ar San Rafael .Airport San Rafael, Marin County 2011 2a NICE 10 Solar Dorninion/RE Kansas Solar Stratford, Kings County 2015 NICE 23 Solar Dominion/Cottonwood Sotar Stratford, Kings County 201 25 NICE 1 Solar Dominion/Suck Ins!mile of Research on Aging Novato, Marin County 2016 25 NICE 0.3 Solar Rawson. 310111 & Lenn;`Cost PIUS Ptaza Larkspur, Marin County 2015 10 NICE 1 solar North Shore Solar PartnErs,'Freethy Industrial Pk nl Richmond, Contra Costa County 2f, 16 10 NICE I Solar North Shore Solar Partriers, Freethy Industrial Pk #2 Richmond, Contra Costa CoUntV 2015 10 MCE 015 So#ar REP Energy/Cooley Quarry Novato, Marm County ?{117 20 NICE I Solar REP Energy/Cooley Quarry Novato, Marin County 2017 20 NICE 10.5 Solar NICE 5ciar One Richmond, Contra Costa County 2,017 25 NICE 30 Solar Recurrent Energy/hlustana Solar Power Project Lemoore. Kings County 1 -rig 15 NICE 100 Solar Recurrent Energy, iranc[tObty 8 Tranquility, Fresno County 20i 6 is NICE 105 Solar saawer'Anteiope Expansion 2 Lancaster; Los Angeles Caunty Z0 S 10 NSCE 0.06 Solar Small World Trading,'EO Froducts Sar) Rafael, Mann Colrnry 2013 201 NICE O.1r9 5u13r Oakley RV & goal Storage Oakley. Ccntra Costa Ccur7ty ?013 ?C' MCF I Solar Arr+encarr Canvon A American Canyon. Napa County 2011) 10 NICE I Solar American Canyon B American Canyon, Napa Courity 019 1 (] NICE 1 Solar American Canyon C American Canyon, Napa Cmwtyr 2019 1 L) NICE I solar Central Marin Sanitation Agency San Rafael, Marin County 2019 10 Nick 1 Solar Palm Dri'v'e A [Napa, Napa County 2019 20 MCE 1 Saler Palm Drive li Napa. Napa County 217 r a L0 NINE i Solar P-,Ilm Drive C [Napa, Napa Cnun;>< .'_0719 10 NICE 0.1 Solar DRYS Quarry ;Novato. Marin County 2019 20 NICE L 1- Solar San Ratael Airport 11 San Rafaet, Marin County 2019. 20 MCE I. Solar Silveira Ranch A Novato. Marna County 2019 20 NICE I Solar Silveira Ranch B Novato, Marto County 2019 20 NICE I Solar Silveira Ranch C Novara, mmitl County 2F1151 20 NICE It'0 Solar First Solar-'Little Bear Solar Mendota. Fresno County 2020 10 NICE so Solar E 0 c Renevvablt.s,Des, rt Hafvesr Desert Cense(, Riverskl=' Cu_.c r, _020 '0 SCP 70 Solar Feer ' er7=`hSus+,;[71 I r tiTustang 3 _ moore, kings County 1-V?6 .0 -CP i Solar C, ;a veli Solar; [sort) Solar ?etalurrra• Sonoma County 201 i S 111 `h SCP 1 Solar '-Old•vrel' S':1 f2 Stage ZL.IC!, Solar P4[31brr.3, 50 nterT73 CCernty 0 r S 20 SC? Wes[ tie t. 111111 :i. S3ncm,11-0Ur1LY scr 1 Solar G-C.t�r =n2: pia wIu -- la treIt v East 'erarurr7a. SGFIG 13 CoUfTZ), „1 y SCP I Solar Ere•parc,+Cloverdale Solar Canter Cloverr;ale, sQnoma Cc un t} 2,013 211 SCF I ScIar 10ter%:ect"IP Matber 'JV1i1i:5, 4IEnc ccin0 Count'; 201? 2 SCP 50 Solar yexta<rr7 PfORima SElar. LLC. ] N'.11' Storage itan I st::::S lo!rrrtl 0 LCE Ta Solar sPower.fWesrrern Anteleve Dry Ranch Larcaster. Los Aiagelr- CC.,,; PCE 200 Solar FronClef' Renewables. U .'sigh[ Solar Park Sami Neils, %JerCed C. ,r iv :['1ti_ - PCC IUI] Sour NlusTsng it LVhrrlaway i emaore, Kings Cnur•r. '0-.9 CPSF 100 solar 'IP06ver?San Pablo Racer: +s Lancaster. Los-Uq,!ie: --ours v 1'319 _ NIPCF`:5VCE 150 Solar Recurren[rRE 5',ateI Solar- 45 Nl%ti, 187 MWh Star ag- _?rno3r�_, lanes Caunq MSCPrSVCE i t'8 5013r ED" 3igGetu Solar, 411 Ntr'11 e+i •%J1'Jf, 51,)•age Rcsamor}d. XprrtCot �.y =021 90 Size Resource Provider/ Start PPA Term CCA (MW) Technology Project Name Location Date (Years) MCE 1.6 Biogas G2 Energy/Hay Road Landfill Vacaville, Solano County 2013 is MCE 4.8 Biogas Genpower/Lincoln Landfill Lincoln, Placer County 2013 20 MCE 1.9 Blagas G2 Energy/Ostrom Road Landfill Wheatland, Yuba County 2013 is MCE ._.__: + �-_.�_LAr � n�L d►nrood. i artdfill L _IAW!L�t _ In - UY Y _ . - 94:1Z _� 1. 4_ . _ 4Q Monterey Bay Community Power Understanding Your Bill Though MRCP and PG&E are separate organizations, for customer convenience MBCP's electric generation charges are included on your PG&E bill. Your electricity is provided at the same rates as PG&E, plus it will be carbon -free and you'll receive a minimum 3% rebate. Residential customers receive their rebate as a bill credit in December, small to medium commercial twice a year in June and December, four times a year for large commercial customers in March, June, September and December. Net -Energy -Metering customers receive their rebate at their annual true -up date. You also have the g4iiiQn to direct ygur rebate to fund local green energy projects or local nonprofits that support programs that serve low-income ratepayers and/or efforts related to climate change. • MBCP now procures energy on your behalf from carbon -free energy sources; PG&E will no longer charge you for electric generation. • PG&E will continue to charge for electric delivery — the transmission and delivery of your electricity — as well as required regulatory and program charges, at the same rates they always have. To learn more about your PG&E energy statement visit pge,com. • M8CP service will never be more expensive than PG&E's. MBCP matches PG&E's electric generation rates, inclusive of PG&E's exit fees. Thanks to the minimum 3% rebate, you will see a savings when the rebate is applied to your bill. • There will never be any duplicate charges. MBCP and PG&E are charging for separate services on the same bill. The sample bill below provides further explanation. 0" ENERGY STATEMENT Account No: 9023455789-0 ' .rrwav pge.corrlNlyi nergy Statement Date: Due Date: 09/0712018 910712418Due 0912812018 Service For: Your Account Summary M9CP CUSTOMER Arnouitl Ouo nn Prvvirkin Shllermilt $207.16 1234 MAIN STREET Pnymem(s) Receiver/ Slnce Last Slalrruenl -207.16 MOWER EY. CA 93940 Previous Uapare Balance 59.00 Curaml PG&E Eleclnc Oeiivery Charges 5109.14 Mon;trey Bay Cnmrnwily PrrxerElccIdc..Gcneralinn Chargas 44.37 —0 Questions about your hili? Curran/ G05 Charges Isis Monday-Frkay 7 A.rr1 -9 p.m. 3alurclay 8 a.rn,•p p.m. Total Amount due by 09/28/2018 T„ �1T7_$fi Phone' 1-000.743.5900 F. _ _�. �__,_�..� __ _ _` _ __ _�-0 Kwo pUu.arnlrlMyEnwUy Account Number This is your PG&E account number, which you will need if you'd like to opt up to MBCP's 100% renewable service offering, MBprrme. You will also need this account number if you would like to change your r ig,l, a; keep your rebate, green your rebate by redirecting it to MBgreen-r, or share your rebate by donating it to MBshare. Your PG&E account number is also needed to opt out of MBCP service and return to PG&E. PG&E Delivery Charges PG&E charges to deliver electricity over their existing transmission lines, maintain infrastructure and other fees that support customer service and billing. MBCP Generation Charge This charge is to cover Monterey Bay Community Power's cost of purchasing clean, carbon -free electricity for customers. Total Amount Due Includes PG&E's electric delivery charge, MBCP's electric generation service and PG&E gas service, if applicable. This is the total amount you pay to PG&E, conveniently on one {gill for services provided by both PG&E and MBCP. �1 ENERGY STATEMENT Statement No: 10234511789-0 Date: 6910712018 Due Date: 0912812 0 1 8 Important Phone Numbers - Monday -Friday 7 a.m.-9 p.m., Saturday 8 a.m.-8 p.m. Customer service (AII Languages; Relay Calls Accapted) 1-800-743-5000 TTY 7.1.1 ..- alC w,-r"MWf8p..r.l�.w 1-8 &R C1,J, la••Sch lV. E: I V',rl�ain•a••i '•f:f:R.}^f;.;i'IA mn W.Ta%1r [c+:mm of 1.tl 77.97-'-SSSA a�s�nns Cuirarne• Scr l.ca <•5C9•ar-g�741 R41es and tdes 12345678910 'ft rrr:'-•a 9-e f+r I-a•r le- T. ran o_n wp .r a.w.a Q"•„� y r=�.�,r••K arn� r•„�',<,%m Your Electric Charges Breakdown This is the sum of Ifya,bWr.Innris•lwrwrm raa•• 44. P""W 'g7.71].SC.dq rP,�•.� *� M_ �W Ser xe Pnr 1234 MAIN STREET Servlee Agrs!caller[ IC 1234567890 charges from transmission, distribution and other fees, ryiT;, :�'i : y�� r � e•>".r sso,:c7•uc:. cnec-e: ora.. er,,:n ws va- RAIe SrhH[Stl l{!- �;1 I-Iie�rr141111:11 �u If1Y1CN The n10re kWh you Lansulna, she mar- %XP.F siv it is ew)Ilre Tr, Rimy ”"'"''""''" � fund 9 - Yr Ehc nc J 01110212018 - OW3112018 Your Tier Usage I 1 1 2 taxes, and programs that regional or statewide 7al.nc3l,r.ra:n=•yerw rar+rt:y Imvnn: ePl:e ercr.ly .ager r r:nwt�wcx;orraw,.t..:ru„i r:�u+.a •�w..Mv++.�,lwc•y..yr�.t programs such as ow -income assistance an I'm dnr•M ' M Gn1. G c n:.r1 arrea daywx b ru.aL F.Y rcva. o•reW fn ^'^^afro'°�°^�°°�'~ efficiency rebate This amount will match cMc �dd[rae rr111• 41[sttfn re lar mx.^er+arr M/arh�r•Jor rcrn. programs. 1,i y- ei:a:. F•Y•te •er i++l ^1•N"•'�"'�n 109ry7W «arxrClwpef W lap Yal! the PG&E Electric Delivery Charges. nr-tr.verb,eWkla,IgywrLlN,e.:vr._F.,daee+ane•vre.+ndr rw rvr r;. •+. •u rwasn ralN rr.k. r �ze'k CRHIi ratan v arw .we wl pmnAaa wl rJrfRvr a�rMan•,Y,�,J aaw pi Yaa m.f• W!, Wr(:U 76ur ryn,lc c"Fig" umakdenn r..,,,; sn.vq.,c..xxn r-Ya+a+warn Ir n •^t+9r arr.ra:7 p++;r..n frr r r•m, m -+'w, �e.'ti+nf Itirasrra C:•r ri, s ., -m .. �. 25 2, ImpmlaRs non nnrcn. q rrvr ....,'.- w:: Rxa�rna-wa9l Nnrka ncnvcvtm:r er,{Nx1 •evary Mee oxR [Ier.1•{Pke ru Pr 815 Wa• '+{roma .qvl c�ia.rt1•ra r..swlJ•cr�mn••mm� 71: I,rr,�9axsne allwrarce:�y: re,.e¢valydarur{yrtn• M=.i�aiatne rn4A +a�.w•2-a Cr�C a,un,,a Per Aw'A wnar,. LQW a•nr nmy� AM —e -.1r•1 fa-• I. ­q[ Of(rniK.(r".atea la 1— .. ,n• r•a r t:h"" 1.1 r.aM ar aariM.><.e rrra a•rarr.,�•aw.r_nwv,:�-n t an,:arc•1, LRtrnC aRec�:rrl=ri.•_•:I Jul T:n.:w1rn]r�.rr. alrcelb ,e Ye wr,m.aM1Ta•a•qu.rcn .}, :•A nos ;i<rr»� �r ra-•,r-7v �ry r..eHrnr •rrr�un. v.ry rlvwmr fa:na.a Cv. 71s l�eiu•rNaalwrN ren Ilpb Y.,�+::�-rac•euaa aee,�..Y•n Mnr.w ek[Irrs,•ry •..air.;. F'.w _--• ��._ fdYCMcVk Ch,rRerT � S10f-U ny Ta Cl4�+ah axle i alar :, n a b�aq Lbw:. 1'�•�f tM`Ft rNn ^p .i�+'r Ir,I1~%l iyar dcaWn Account : 10234567890 JW1 ENERGY STATEMENT Statement Date: 09!0712018 Due Date: 0912812018 Details of PG&E Electric Delivery Charges Service Inrannatian '.'r-lr•r Of 12345678910 08/0212018 - 0813112018 (30 billing days) Cefron! A.oLr Rea0tl 5012,.1 Ser xe Pnr 1234 MAIN STREET Servlee Agrs!caller[ IC 1234567890 Vrlrr W. .I@( Rnad,rp Tclal Uoi qa 49,5Tr 39•". C11A)W <Ml RAIe SrhH[Stl l{!- �;1 I-Iie�rr141111:11 �u If1Y1CN The n10re kWh you Lansulna, she mar- %XP.F siv it is ew)Ilre Tr, Rimy _ � Ifpol -So ufvs $prial 9 - Yr Ehc nc J 01110212018 - OW3112018 Your Tier Usage I 1 1 2 Ru1:14np ❑iNille Stuti, 9= Tip: 1 Allonaw 21aa w 6orA 1311 r:eys x 1-0 kW llleay) �wr7lJsagC 2l[:,q(170C: ki1'n $0711R.S $od 4!i liar? lJpa 365.000003 WAI,, So 71943 190.06 GenCrali9n,_dA •&4.57 Pyvrpr C'+arpn IRdffw; nce Mom rngnt ?e.04 Frarc ltlse Fen Sirpcl•:1f4N 6.33 Total PG&E Electric Delivery Charges $109.14 3315 :Inlaljr:d Pcyler fnur0cr Indllfem:!cr. Adlusunef+I 0 Service Agreement ID A service agreement documents your particular arrangement with PG&E (including billing days, metering information, and otherfactors) in order to calculate applicable charges. For customers with multiple meters under a single PG&E account, each meter will have a unique Service Agreement ID number. 0 Generation Credit This is the generation fee now provided by MBCP's generation service, so PG&E credits this charge back to your account to avoid any duplication of generation fees. Power Charge Indifference Adjustment PG&E charges Monterey Bay Community Power customers a Power Charge Indifference Adjustment (PCIA), which is calculated based on the number of kilowatt- hours used each month. The PCIA is intended to ensure that MRCP customers pay the difference between what PG&E paid for power contracted to serve them prior to their switch, and the current market value of that power. For most MBCP customers, the PCIA is currently two to three cents per kilowatt-hour, depending on when the customer switched to Monterey Bay Community Power and whether they are a residential or a commercial customer. MBCP's rate setting process is inclusive of the PCIA charge, so that in total, customers still save money compared to PG&E`s rates. Franchise Fee Surcharge The franchise fee is collected from PG&E to cover costs associated with rights to use public streets to provide gas and electric service. MBCP's rate setting process is inclusive of the Franchise Fee Surcharge, so that in total, customers still save money compared to PG&E's rates. JWJ ENERGY STATEMENT Details of Monterey Bay Community Power Electric Generation Charges 08/02/2018 - O8i310018 (30 billing days) 5.;:•.Ic�• F,: 1234 MAIN STREET S —m-Agrs•:rr"A lt,' 1234587890 L5R CAlvritu: Y4"L::r 1234%7890 ra■ 08!0212019 — 09/314019 Rale Schmille: e, savrlcra;rur+ 545.GIXg00 k•JJh r230.0T370 $414 20 NM Charycs 4F.20 Frrrgy Srrrtn:rr;" 0.17 U- MBCP RrbaIe rvr Currvi•I cl tar 4. Total Monterey Bay Community Power Electric Generation Charges $44,37 Account No: 1023456789-0 Statement Date: 09107/2018 Due Date: 09/28/2098 Service 10formalian T01d1 'wage 599C066W KV:'Y• Fal quW:onx Igmdvig 47argvs an tills page, p. ease: C chlacz MONT9 REy RA.'e COMMUMiY PC) VER I.888-gllSy'?2i vnrr.mbmmrrtuniiyFov+vr very Additional Messages •— Mw1ibrey =ay C:ornnt Urf lty Pot tF proMeS deCftklly In tho 0"nF c.01 AhillMy, SONtJ Cru. .:td San Reat;o cnllMly }rats ,a r. mablo and 1iy'rLa;lecim resourn:s 1?6c;r is a nol-rvr-;Il Met pugl.c apancy ar,8 drat: ds rates :n be can"'""%.+,M PGriE W.CF au prvvi ics all raslomer; wlh perl jx reltaln Inr tnr!ir enc -'0u coals V•s:t en GCnm m u nitypowor,org t: cal[ 18881 909.8227 (A19C?s to:earn mvrc FOIE :ortumi r5 io provi8v all d2vlrit &I lvc ry, p.Wrtg. and 5a3 .`.e'mce5 Per MF3GF' ter w.wy. f ry SY w4& pGt'L lot ,ol A:,i issues 0 ESP Customer Number This is your Energy Service Provider (ESP) Customer number for MRCP, 0 Rate Schedule This is your rate schedule determined by PG&E. Utility Users Tax varies from city -to -city in MBCP's service area and may not apply to every community in our jurisdiction. 40 Energy Surcharge This fee is collected on behalf of the California Energy Commission and applies to all customers, regardless of service provider, The California legislature established the Energy Commission tax in 1975. The tax provides additional funding for the California Energy Commission. 40 Est. MBCP rebate for Current Charges This shows the estimated amount of rebate earned far 'the current billing period. -;� Additional Messages This section explains more about MBCP and how to contact us. Questions? We're Here to Help. MBCP and PG&E are dedicated to working together to make your power service and billing as simple and convenient as we can. If you have questions about your MBCP charges, call us at 088) 909-MBCP (6227) or email us at infog 1bcpc3munitypQwer.ora, For questions about PG&E charges, call PG&E at (866) 743-0335, m boom m u n itypowe r. org %qALCCA NCING LOC'! ENERGY {HO![E Lockbox Structure riaanPniAia, C Some CCAs utilize a "lockbox" financial structure togive 4� confidence and reduce risk to partners that are concerned about the creditworthiness of a new CCA. Revenues from the sale of electricity are directly deposited into a separate trust account. A CCA's energy supplier is paid directly out of that account each month. It is not until the CCA pays those invoices that customer revenue gets swept over to the CCA to pay for operating expenses. It is a way for a developer or other counterparty to -Feel more secure that it will be paid ahead of the CCA putting aside funds into their reserves or spending it in other ways. Local Governance and No Shareholders As public agencies, CCAs are governed by a board of directors made up of elected officials from the CCA's service area. This responsibility results in conservative and Iong-term objectives that benefit customers, not decision-making oriented around quarterly earnings. As not-for-profit agencies, CCAs do not have shareholders. All surpluses are reinvested in the CCA's programs and products. Ratemaking Authority CCAs have the ability to change electricity rates to address financial needs. CCAs tend to keep rates slightly below those of the incumbent utility, while apportioning any residual revenue into local energy programs that benefit the community. Transparent Public Agencies Same Service • Cleaner Energy OW Monterey Bay Community Power 0 SILICON VALLEY CLEAN ENERGY CCAS are public agencies and as such are subject to the Brown Act and the Public Records Act. Board meetings are open to the public. CCAs produce financial reports on an annual basis with a third -party audit. kCALCCA ADVANCING LOW INRRG{ CHOI(E x` CCA Power Purchase There are 19 operatational Community Choice Aggregator (CCA) programs serving approximately S million customers in California. These CCAs have transacted to purchase power from established counterparties, providing customers with power that is cost -competitive with the rates of incumbent utilities, and in many cases greener. How do CCAs procure low cost, clean power? Expertise and iviissiori Like California's investor-owned utilities (IOUs), CCAs rely on staff and consulting experts in renewable energy procurement. Unlike IDUs, for whom generation service is a cost passed -through to customers, CCAs' procurement function is their Iifeialood. Long -T- ;rm Procurement Planning CCAs build reliability and rate stability through long-term planning and procurement of energy resources under short (a -S years), medium (6-10 years), and long-term (10+ years) power purchase agreements. Since much of the power California CCAs buy is from renewable resources that have no fuel cost, they hedge against fossil fuel price volatility. able & Uiversihe gI Cu;toi ner mase CCAs have a dependable rate base because they are the default generation provider within the communities they serve. CCAs have a mix of residential, commercial, industrial, and public -sector accounts. CCA participation rates are stable—most California CCAs serve more than 90% of the market in their service area. CCAs carefully manage cash to ensure they meet their financial obligations. In many cases, CCAs have bank lines of credit to supplement available cash. CCAs have an excellent track record of paying off loans early, and amply funding reserve accounts. CCAs manage their energy supply portfolios to ensure the right amount of energy is available when it is needed. CCAs ensure ,that energy purchased is diversified by supplier, location, duration, and technology type to provide stable rates for customers and stable revenues and costs for CCAs. MCE Sonoma Clean Power 0 PENINSULA = CLEAN ENERGY ��3u°u.1u�y MCE Q ,r_ PIONEER VALLEY BUTTE COUNTY G NEVADA LAKE CDU NTYQ COUNTY v ter_ D eanPowerSF PENINSULA CLEAN ENERGY 4 MontereyBay Community Power Q Q- Apple Valley Choice Energy Monterey Bay Community Power City of Apple Valley Unincorporated Monterey, San 6enito & Santa Crux Coun tl es & 16 citl es CleanPowerSF San Francisco COunly Peninsula Clean Energy Unincorporated San Mateo County Clean Power Alliance & 20 cities Unincorporated Ventura County & 6 cities, Unincorporated Pico Rivera Innovative Municipal Energy Los Angeles County & 23 cities City of Pico Rivera Desert Community Energy Pioneer Community Energy Clues of Palm Springs, Unincorporated Placer County& 5 cities Palm Desert & Cathedral City Rancho Mirage Energy Authority East Bay Community Energy City or Rancho Mirage Unincorporated Alameda County 8& 11 cities Redwood Coast Energy Authority Humbol dt County King City Community Power King Clty San Jacinto Power City of San Jacinto Lancaster Choice Energy City of Lancaster San Jose Clean Energy Clty aFSan lose MCE Marin & Napa Counties, 1 city in Silicon Valley Clean Energy Solano County, Unincorporated Contra Unincorporated Santa Clara County Cosra County & 13 cities & 13 clues Solana Energy Alliance City of Solana Beach Sonoma Clean Power SAN 10AQUEN L" ­unity Sonoma & Mendocino Counties COUNTY ener y Valley Clean Energy Yolo County & cities of Woodland - — ------ & Davis qqM`SAN 0' " I CLl E�IERGT w K 1 N slY N LUIS OBISPO OUNTY �•-••_•• NTA BARBARA COUNTY p EH�R6Y wwACtE 44llYY�r iGWFR AillANCE e POR RANCHO t� ENERGY MIRAGE atrtxowrrr M—r DESERT col uamr ENERGY � �SILICON VALL[l CLEAN ENERGY FRESNO v COUNTY TULARE cou�vTY SCIISIENfiSf�lnANEE SAN BERNARDINO COUNTY ^Fruma v Q SAN DIEGO COUNTY RIVERSIDE COUNTY YOUR COMMUNITY, YOUR CHOICE Local governments throughout California have chosen to participate in Community Choice Aggregation (CCA) to meet climate action goals, provide residents and businesses with more energy options, ensure local transparency and accountability, and drive economic development. To learn more about the benefits of Community Choice Aggregation for your home or business, contact your local CCA program. --r f Apple Valley Choice Energy MCE San Jacinto Power avchoiceenergy.com mcecleanenergy.org sanjacintopower. com -'-- _ 1-760.573-AVCE (2823) 1-888-632-3674 1-951-665-6812 CieanPowerSF Monterey Bay Community Power San Jose Clean Energy cleanpowersf.com mbcommunitypower.org sanjosecleanenergy.org 1-41 5-554-0773 1-888-909-MBCP (6227) 1-833-432-2454 Clean Power Alliance Peninsula Clean Energy Silicon Valley Clean Energy cleanpoweralliance.org peninsulacleanenergy.com sanjosecleanenergy.org 1-750-573-AVCE (2823) 1-866-966-0110 1 -844 -474 -SVCS (782 3) `- Desert Community Energy Pico Rivera Innovative Municipal Energy Solana Energy Alliance r desertcommunityenergy.org powered byprime. org solanaenergyalliance.org 1-855.3 57-9240 1 -800 -GO -PRIME (467-7463) 1-858-720.4422 East Bay Community Energy Pioneer Community Energy Sonoma Clean Power ebce.org pioneercommunityenergy.ca.gov sonomacleanpower.org 1-833.699-EBCE (3223) 1 -844 -YES -PIONEER (937.7466) 1-855-202-21 39 King City Community Power Rancho Mirage Energy Authority Valley Clean Energy 7.1 Icingcitycommunitypower.org ranchomirageenergy.org valleycleanenergy.org 1.833 -888 -KING (5464) 1-760-578-6092 1-855-699-8232 Lancaster Choice Energy Redwood Coast Energy Authority 611'asterchoiceenergy.com redwoodenergy.org 4 288-4LCE (4523) 1-707-269-1700 VON W 7.7 V,qALCCA NCING LOCAL ENERGY CHDICE cpl-cca org kc, ICCA Environmental Justice ifornia Community hoice Association {'] . Social LJJL Equity cal-cca.org Energy Efficiency for Home Comfort, Health & Savings $1.7 Million allocated annually through MCE's Low -Income Tenants & Families program for $1,200 per unit rebate and free electric heat pump. Participants must be at or below 200° Federal Poverty Guidelines. Sonoma Clean Power is expanding access to home energy audits with free do-it-yourself toolkit in all public libraries. $408,000 in energy efficiency rebates distributed by MCE to 760 affordable multifamily units. CCAs are committed to creating partnerships with and financially supporting organizations that provide workforce development opportunities, including training, apprenticeship and per -apprenticeship programs in diverse communities. $470,812 contributed to local green workforce job training and employment programs by MCE. • 1,797 hours of on the job training, Marin City Community Development Corporation • 330+ hours of construction skills training, numeracy and literacy training, job placement, case management, job -site mentoring and employment counseling, RichmondBUILD • Trained youth provided no -cost energy and water assessments and installations to Richmond, San Pablo and EI Cerrito residents through MCE's Multifamily Energy Savings Program, Rising Sun Energy Center • Local solar install training, focusing on under -served communities, GRID Alternatives Ruben Pendroxa and family, Rich mond BUILD graduate • Sonoma Clean Power provides electric vehicle purchase assistance and lease discounts for CARE customers; 30% of electric vehicle rebates are allocated for low-income customers. • Lancaster Choice Energy is partnering with Antelope Valley Transit Authority, which provides free transit to seniors, to convert to all -electric bus fleet within three years. 1125 Tamaipais Ave, San Rafael, CA 94901 • (415) 464-6689 • into@cal-cca.org • cal-cca.org CaICCA California Community Choice Association cal-cca.org Environmental Justice & Social Equity APRIL 2018 As local government agencies, CCAs strive to promote diversity and inclusion. By harnessing the dynamic power of community, we empower customers to make better choices for their households, for the climate, and for our collective future. We seek to ensure the diversity of our communities is included in our service offerings and programs, workforces and supply chains. Doing so invests back into our customer base and drives sustainable futures. CCAs have launched a wide range of programs and initiatives to increase equity and support disadvantaged community members. Local Control: Accessible, Accountable & Transparent Governance CCA Boards, goverened by locally elected officials, set policy for: Procurement Rates • Projects and Programs • Workforce Development • Community Benefits Board meetings are open to the public, subject to the Brown Act, and held in the communities they serve, inviting direct participation and observation in decision-making. By contrast, average customers do not have access to CPUC Commissioners, who are appointed, in the way they have access to CCA governing boards, who they elect and are located in their community. Customers also do not have access to IOU executives or IDU board members, as their primary legal obligation is to their shareholders. $2 Million allocated by CleanPower5F for solar rebates for underserved residential customers through GOSolarSF. Low- income homeowners can save up to 100% off the installed cost of solar. $345,004 allocated by NICE for low-income solar rebates. Estimates indicate rebate-asstisted installations have saved customers $2+ Million on their electricity bills. Lancaster Choice Energy focuses on low-income customers with California HERO and California first to offer Property Assessed Clean Energy (PACE) financing. {Continues on next page] 3 generations of Richmond residents? Kathy, poria, and Innua Robinson CaICCA California Community Choice Association cal-cca.org Creditworthiness As of April 2018, 13 Community Choice Aggregators {CCAs} have launched successfully throughout California and are serving more than 3.5 million customers. These CCAs have transacted to purchase power [from established counter parties), providing customers with power that is at price parity or below the rates of the incumbent utility, for power that is as clean or cleaner. Expertise and Mission Like California's investor-owned utilities (IOUs), CCAs rely on staff and consulting experts in renewable energy procurement, Unlike IOUs, for whom generation service is a cost passed -through to customers, CCAs' procurement function is their lifeblood. Long-term Procurement Planning CCAs build reliability and rate stability through long-term planning and procurement of energy resources under short (0-5 years), medium (6-10 years), and long-term (10+ years) contracts. Since much of the power California CCAs buy is from renewable resources that have no fuel cost, they hedge against fossil fuel price volatility. Stable & Diversified Customer Base CCAs have a dependable rate base because they are the default generation provider within the communities they serve. CCAs have a mixof residential, commercial, industrial, and public -sector accounts. CCA participation rates are stable—most California CCAs serve more than 90% of the market in their service area. Prudent Risk Management CCAs carefully manage cash to ensure they meet their financial obligations. In many cases, CCAs have bank lines of credit to supplement available cash. CCAs have an excellent track record of paying off loans early, and amply funding reserve accounts. CCAs manage their energy supply portfolios to ensure the right amount of energy is available when it is needed. CCAs ensure that energy purchased is diversified by supplier, location, duration, and technology type to provide stable rates for customers and stable revenues and costs for CCAs. (Continues on next page) APRIL 2018 CrCCA Creditworthiness I C CalifCommunity Choice Association ca kcca.org Lock box Structure Some CCAs utilize a "lock box" financial structure to give confidence and reduce risk to partners that are concerned about the creditworthiness of a new CCA. Revenues from the sale of electricity are directly deposited into a separate trust account. A CCA's energy supplier is paid directly out of that account each month. It is not until the CCA pays those invoices that customer revenue gets swept over to the CCA to pay for operating expenses. It is a way for a developer or other counter party to feel more secure that it will be paid ahead of the CCA putting aside funds into their reserves or spending it in other ways. Ratemaking Authority CCAs have the ability to change electricity rates to address financial needs. CCAs tend to keep rates slightly below those of the incumbent utility, while apportioning any residual revenue into local energy programs that benefit the community. Local Governance and No Shareholders As public agencies, CCAs are governed by a board of directors made up of elected officials from the CCA's service area. This responsibility results in conservative and long-term objectives that benefit customers, not decision-making oriented around quarterly earnings. As not-for-profit agencies, CCAs do not have shareholders. All surpluses are reinvested in the CCA's programs and products. Transparent Public Agencies CCAS are public agencies and as such are subject to the Brown Act and the Public Records Act. Board meetings are open to the public. CCAs produce financial reports on an annual basis with a third -party audit. Monterey Bay Community Power Contact Shelly Whitworth FOR IMMEDIATE RELEASE Telephone 0: 831-641-7206 C; 831-229-0277 March 15, 2019 Email swhitworth@mbcommunitypower.org Website www.mbcDmmunitypower.org MONTEREY BAY COMMUNITY POWER LAUNCHES "PROJECT SUNSHINE" AFFORDABLE HOUSING SOLAR INCENTIVE PROGRAM In Collaboration with GRID Alternatives, MBCP's First of Three 2819 Energy Programs Will Benefit Affordable Housing Residents in Tri -County Area Monterey, CA March 15, 2019 — In partnership with GRID Alternatives, Monterey Bay Community Power (MRCP) today announced the launch of Project Sunshine, a solar incentive program dedicated to assisting affordable housing residents by providing no -cost solar for families with limited or fixed incomes. By utilizing solar energy, Project Sunshine participants can also look forward to saving up to 90% on future electricity bills. "When the vision for MBCP was created, there was a very clear need and desire to direct benefits to our underserved communities and residents," shares MRCP CEO Tom Flabashi. "Thanks to this collaboration with GRID Alternatives, Project Sunshine exemplifies that commitment as well as MBCP's overarching mission to provide cleaner energy at a lower cost while contributing to the economic vitality of the Monterey Bay region." Project Sunshine funding is limited so interested MBCP customer families and residents are encouraged to go through the prequalifying and application processes as soon as possible. Applicants can learn if they qualify by visiting www.gridsolar.oror by calling 866-921-4696. After completing the prequaiification process, applicants are required to meet with a GRID Alternatives Customer Representative and complete the final application together. "GRID Alternatives is thrilled to have this partnership with MRCP that allows us to expand our impact in the tri -county area," explains Justin Hitchcock, Executive Director of GRID Alternatives Central Coast. "Every solar installation we complete comes out of a great collaborative effort of community partners. The impact of this effort is also shared by the community, from the families realizing electricity cost savings, to the jab -trainees gaining new employable solar skills, to everyone benefiting collectively from a reduced carbon footprint and reduced air pollution." Based on revenues from year one of operation, MBCP has set aside $1.25 million in funding for 2019 Energy Programs, first of which will be Project Sunshine. The goal of Project sunshine is to support solar installations for up to 20 families and potentially equate to $500,000 in bill savings over the life of the solar projects. MRCP will be rolling out additional Energy Programs later this year including an EV incentive program worth $725,000 for MRCP customers, as well as an EV Infrastructure Program which includes $6 million in additional funding from the California Energy Commission to offset costs associated with installing or upgrading EV charging stations. To date, MRCP has already returned $4.4 million in revenue to tri -county businesses and residents through cost -savings delivered as a 3% rebate on 2018 MBCP Electric Generation Charges. Looking ahead, MRCP anticipates rebate dollars increasing for all customers in 2019 and funding for Energy Programs doubling and even tripling over the next two to five years. About MBCP Monterey Bay Community Power is a Community Choice Energy agency established by local communities to source carbon -free electricity for Monterey, San Benito and Santa Cruz counties while retaining PG&E's traditional role delivering power and maintaining electric infrastructure. As a locally controlled not-for-profit, MBCP is not taxpayer funded and supports Tri -County economic vitality by providing cleaner energy at a lower cost, supporting low-income rate payers, and funding local renewable energy projects. For more information, visit w�'�w.l-nbcomrnunit o,,ver.org About GRID Alternatives GRID Alternatives is a national leader in making renewable energy technology and training accessible to low-income communities. Using a unique, people -first model, GRID develops and implements solar and clean mobility projects that serve qualifying households and affordable housing providers, while providing hands-on job training. GRID has installed solar for more than 13,000 families to -date and helped households and housing providers save $345 million in lifetime electricity costs, while training nearly 30,000 people. in California, GRID is a long-time administrator of statewide clean energy programs serving disadvantaged communities. For more information, visit www, grid alternatives.org . montereybaycommunitypower. rnbcornmunitypwr -► mbcommunit ower Page 12 Monterey Bay Community Power Contacr Shelly Whitworth FOR IMMEDIATE RE LEASE Telephone O: 831-641.7206 C: 831-229-0277 Email swhitworth@mbcommunitypower.org December ��, Z01$ Website www.mbcommunitypower.org MONTEREY BAY COMMUNITY POWER {MRCP} DELIVERS OVER $4 MILLION IN COST SAVINGS THROUGH 2018 REBATES DECEMBER ELECTRICITY BILLS REVEAL BILL CREDITS, ADDING TO TANGIBLE BENEFITS MRCP PROVIDES TRI -COUNTY BUSINESSES AND RESIDENTS December 19, 2018, Monterey, CA— Monterey Bay Community Power today announced 2018 customer rebates will total more than $4 million dollars, delivering significant cost savings and making good on one of MBCP's primary goals. Residential customers receive their rebate as a bill credit on December electricity bills, non- residential customers receive rebates biannually in June and December, and large commercial and agricultural customers receive their rebates quarterly in March, June, September and December. "Since before our agency was formed, one of our stated goals has been cost stability and supporting the econornic vitality of our region," shared MBCP CEO, Tom Habash i. "It is very exciting and rewarding for all of us at MBCP to be producing more quantifiable results in our first year of operation, and we've got a growing list of additional benefits being passed on to the communities that we serve." In addition to supporting the Monterey Bay Region's economy through cost -savings, MBCP has created jobs, supported local businesses, and in 2019 will be dedicating $1.25 million in additional funding for local energy programs such as electric vehicle {EV} rebates, EV charging stations and installing solar -energy systems on low- income housing. All the while, MBCP's guiding principle to reduce Monterey Bay region carbon emissions through carbon -free and renewable energy sources has been helped drive these results as well as produce an important measure in and of itself; 300,000 metric tons of carbon emissions spared from the environment. "As a major agricultural engine in the Monterey Bay, Dole is constantly exploring opportunities to help reduce costs and create better end products for our customers" says Tom Messenger, Facilities Manager at Dole Fresh Vegetables. "Monterey Bay Community Power delivered on its promise for carbon -free electricity and its customer rebate which Dole greatly benefited at over $50,000 in bill savings this year." Businesses and residents alike are benefiting from finally having a choice when it comes to electricity providers. Whether one looks at individual or regional gains, the trends are undeniably positive in nature. "This rebate is from just five months of service," exclaimed Robert and denyse Frischmuth, residents of Pacific Grove. "We're grateful because it is a benefit of choosing cleaner electricity from our local provider who gives us a choice and a voice for our energy needs. We're already looking forward to the 2019 rebate because it might be more than double this year's savings!" Next up for M6CP is the rollout of local energy programs to further curb carbon emissions, support the growth of renewable energy infrastructure and continue providing economic stimulus for the region. Monterey Boy Community Power is a Community Choice Energy agency established by local communities to source carbon free electricity for Monterey, San Benito and Sonta Cruz counties and now Son Luis Obispo county. PG&E will continue their traditional role of delivering power and maintaining electric infrastructure. As a locally controlled nor for-profit, MRCP supports regional economic vitality by providing cleaner energy at a lower cost, supporting low-income rate payers, and funding local energy programs. For more informotion, visit www.i-nbcon7inut7itypower.org inmontereybaycommunitypower mbconimunitypwr no o mbcommunitypower Page 12 Monterey Bay Community Power Contact Shellywhitworth FOR IMMEDIATE RELEASE Telephone 0: 831-541-7206 C: 831-229-0277 Email swhitworth@mbcommunitypower.org December 5, ��18 Website www.rnbcommunitypower.org CITIES OF SAN LUIS OBISPO AND MORRO BAY TO JOIN MONTEREY BAY COMMUNITY POWER (MBCP) NEW MEMBER AGENICES PARTNER WITH MBCP TO FASTTRACK CLIMATE ACTION GOALS AND PROVIDE ECONOMIC AND ENVIRONMENTAL BENEFITS TO THE CENTRAL COAST Monterey, CA December 5, 2018 — Today, the Monterey Bay Community Power ('MBCP) Policy Board unanimously approved the inclusion of the cities of San Luis Obispo and Morro Bay as new members to the list of municipalities served by MBCP, one of California's most innovative and fastest growing Community Choice Energy (CCE) agencies. By adding approximately 29,000 new customers, MBCP will grow its customer base to over 300,000 customers served exclusively with carbon -free energy or an additional reduction of 25,000 metric tons of greenhouse gas emissions*. "We are very excited to be joining Monterey Bay Community Power," exclaimed San Luis Obispo Mayor Heidi Harmon. "Dur City is working toward one of the most aggressive climate change targets in the country. Byjoining MBCP, we are able to achieve our 2020 Climate Action Plan target and have a strong foundation to work toward longer term target of carbon neutrality, all while having access to new programs and stimulating our local economy." Today, 19 different CCEs, also known as CCAs (Community Choice Aggregators) are serving eight million customers across California, helping to lead the way towards achieving California's ambitious climate goals. CCAs are also providing cities and counties with more local control over their electricity needs and less dependence on investor-owned utilities like PG&E to generate electricity. "The City of Marro Bay is excited to join Monterey Bay Community Power, a proven Community Choice Energy program, to bring affordable, greener and cleaner energy to our community," stated Mayor of Morro Bay, Jamie Irons. Community Choice Energy has long been a key strategy for both San Luis Obispo and Morro Bay to meet their climate goals. San Luis Obispo passed a resolution back in 2015 to explore Community Choice Energy and most recently, San Luis Obispo became the first city in California to set a goal of achieving carbon neutrality by 2035. After careful consideration, both cities concluded that joining Monterey Bay Community Power is the fastest and most effective way to bring additional community benefits to the Central Coast. Last month, city councils of San Luis Obispo and Morro Bay both voted unanimously +n favor of joining MBCP. "The CCA community continues to grow at a remarkable rate, driven by communities that are committed to customer choice, reducing carbon emissions and embracing renewable energy resources," explains MBCP CEO, Tom Habashi. "Here on the central coast, this new partnership with the cities of San Luis Obispo and Morro Bay affirms our region's long-standing commitments to environmental stewardship and economic stimulation. Our team is really excited to bring these cities into the fold and we hope more communities in our region and across California follow in their footsteps." The tentative date for MBCP's newest member agencies to be operating under an amended Joint Powers Authority agreement is January 2420. After today's vote, the motion moves the implementation plan to the California Public Utilities Commission for certification. With the inclusion of San Luis Obispo and Morro Bay, MBCP continues to excel in providing tangible benefits to the Central Coast through carbon -free electricity, customer rebates and energy programs. About: Monterey Bay Community Power is a Community Choice Energy agency established by local communities to source carbon free electricity for Monterey, San Benito and Santa Cruz counties and now San Luis Obispo county. PG&E will continue their traditional role of delivering power and maintaining electric infrastructure. As a locally controlled not-for-profit, MBCP supports regional economic vitality by providing cleaner energy at a lower cost, supporting low-income rate payers, and funding local energy programs. For more information, visit www.nibcommunitypower.orq * Emissions anal sis estimated b y MBCP's 2018 emission factor of 2 lbs MWh of CO2 and PG&E's estimated 2017 emission factor of 198lbslMWh of CO2 Handles: facebook.com/­montereybaycommun}tvpower twitter.com mbrommiinitvnwr itistagrat-n.com/mbcommunitypower Page 12 Monterey 6 a y Community Power C,onract Shelly Whitworth FOR IMMEDIATE RELEASE Telephone G: 831-541-7206 C: 831-229-0277 November 1, 2018 rrrrcrll swhitworth@mbcommunftypower.org website www,mbcommunitypower.org MONTEREY BAY COMMUNITY POWER SIGNS CONTRACT FOR CALIFORNIA'S LARGEST SOLAR -PLUS STORAGE PROJECT New Renewable Energy Developments Will Contribute to a 12% Increase in U.S. Storage Capacity' Monterey, CA - November 1, 2018 — Monterey Bay Community Power (MBCP) recently signed two long-term solar development agreements, one of which will be the largest utility -scale, solar -plus -storage project ever built in California. With the approval of these two projects, MBCP will be making significant contributions to grid stability for California and to utility -scale storage capacity for California and the Nation. The Slate 1 project, to be developed in Kings County, CA by Recurrent Energy, will provide 150 megawatts (MW) of solar capacity, plus 45 MW of storage, for a 15 -year term. Just south in Kern County, the Big Beau Solar project, developed by EDF Renewables North America, will provide 128 MW of solar capacity with 40 MW of storage as part of a 20 -year agreement. The two solar +storage projects combined will power32,000 MBCP customer homes annually and will provide 840 temporary jobs during construction with commercial operation scheduled for 2021. "We are �,rcited to brOy oriline the largest California solar -;alas -storage project by CCAs to dote, "said tom 1•labashi, Cf -_0 of iVfontc:rey flay Community flower. Solar development Inas been a hallmark of Culiforoio's- renewable erreryy boors rare' with the storage component, we carr realize the full potential of solar y aeration.' Both projects are the result of a joint -procurement effort between MBCP and Silicon Valley Clean Energy fSVCEj, their second such collaboration in less than 3 months. MBCP will be off taking 45% of the energy produced from both Slate 1 and BigBeau, while SVCS will harness the other 55%. The renewable energy produced from these projects will be utilized exclusively by CCAs, many of which are driving the recent rise in buildout of renewable energy infrastructure across the state. The California Community Choice Association (CaiCCA), a trade group that represents the state's community choice energy agencies, applauded the joint procurement effort noting it represents a significant achievement for the CCA movement in California. "This landmor lr pur'chase of utility -scale solar and energy storage resources shows that CCAs erre ready, willing and able to sign long-term contracts with new renewable energy prpjecrs in California, "said Beth Vaughan, e.fecutive director of C aICCA. It also reflects the cornmitment community choice prograras have to supporting ,new sources of clean energy arrd fueling job creation and econornic development. Asa leader among CCAs driving California's climate action success, MBCP is also poised to provide its own community with significant benefits. After just eight months of operation MBCP is projecting to save tri -county a combined $3.5 million in cost savings, contribute to 300,000 metric tons of CO2 emissions spared from the atmosphere, and reinvest an additional $2.5 million in programs designed to help offset the cost of electric vehicles (EV) and EV charging stations for residents, businesses, schools and public agencies. Additional programs to support low-income rate payers are also being evaluated. ;According to a May, 2018 11.5. Energy Information Administration (EIA) report: At the end of 2017, 708 MWs of utility -scale battery storage capacity was in operation in the US. With the approval of these two projects, MBCP will be contributing to a 12% increase in US Storage Capacity About Monterey Bay Community Power Monterey Bay Community Power is a Community Choice Energy agency established by local communities to source carbon -free electricity for Monterey, San Benita and Santa Cruz counties while retaining PG&E's traditional role delivering power and maintaining electric infrastructure. As a locally controlled not-for-profit, MBCP is not taxpayer funded and supports Tri -County economic vitality by providing cleaner energy at a lower cost, supporting low-income rate payers, and funding local renewable energy projects. For more information, visit www.mbco]=Unitypower.org Handles: i:�cebnok.comlmanEc.. ba Lo>nmtiiii���owurtryittei-.coinlunbcoir)tinunitypwr instagr:�ns�c�����fnfl}C nn�l3ltuiilypcnvet: Powering the Tri -County Region with California Sun S1N'i11 STING IN NEW RENEWAOL5 ENERGY PROJECTS `- r Monterey Bay 0 �7� rf� 125 38 15 & 20 Tats! Mw of *afar rarar MW of ■tarago Yoarsof dallvery M Solar energy isstored in large batteries j dl�ring the day and released in the evening 32,000 844 2021 l to power homes and businesses with clean Ha % pnwarsd Cnnasructlon jobs j.r energy when it's naeded most. annually ■upporta �nm prn�tign 1n foPr0tahjc showing whe the r mto projectr, cornhhi f) means for the M8611 commi-f oi, y Page 1 2 r7ecurrerit Erieryy's Mustang solar pticitovol'taic Ol6pr oject for two other CCEs, Sonoma Cleoi, Power and IVICE iucured rieur-by is the Slate project in Kirrgs County, Calirurrria. Page 13 Monterey Bay Community Power Contoct Shelly Whitworth Telephone 0:831-641-7206 C: 831-229-0277 FOR IMMEDIATE RELEASE Email swhitworth@mbcommunitypower.org September 18 2028 Website www.mbcommunitypower.org i0 AHEAD OF SCHEDULE AND BEYOND EXPECTATIONS - MBCP PAYS OFF STARTUP LOAN AND SUCCESSFULLY ENROLLS CUSTOMERS IN MONTEREY BAY COMMUNITY POWER Fiscal Responsibility, Community Outreach and Innovative Energy Procurement Put Tri -County's Newest Public Agency in Good Standing with Customers, Cities, Counties and State Monterey, CA— Sept. 18, 2018 -After just seven months of operation, Monterey Bay Community Power (MBCP) has successfully paid off a loan obtained through fines of Credit totaling $6.2 million, as well as reimbursed the County of Santa Cruz for expenses incurred on behalf of MBCP prior to securing the lines of credit. "Due to sound financial stewardship, low cost carbon free electricity procurement and smart decision making, MBCP will pay down this Outstanding debt a year earlier than planned," exclaimed Bruce McPherson, Board Chair of MBCP's Policy Board and Santa Crux County Supervisor. "This is an incredible success and demonstrates the value of having a locally controlled agency that can be a catalyst for economic and environment progress in the Monterey Bay." By focusing on business fundamentals to achieve better financial stability, M8CP will be in a stronger position to continue delivering on its promises around clean energy, lower cost and economic vitality for the tri -county businesses and residents. MBCP is successfully serving 97% of the eligible customer base across the 16 cities and 3 counties which constitute the newest Monterey Bay public agency. "MBCP is frig when it matters, small when it counts," said Tom Habashi, MBCP's CEO. "Our service territory is large enough to afford attracting the majority of small and large energy developers and suppliers, yet small enough to move quickly when opportunities for acquiring clean, efficient and economical resources present themselves. As part of the fast-growing, statewide Community Choice Energy (CCE) or Community Choice Aggregator (CCA) movement, MBCP is playing an important role in helping the Monterey Bay Region and even the entire State of California meet their ambitious climate -action goals. "MBCP continues to exceed expectations that were put forth as the first tri -county Community Choice program in the state of California," said Steve Mc5hane, Vice Chair of MBCP's Policy Board and Councilmemberfrom the City of Salinas. "By retiring its debt early, MBCP exemplifies what is means to be a well-run public agency for the Monterey Bay region. I am excited for the future of MBCP in providing tangible value to its customers through outreach, education, customer rebates and customer programs." 1 In addition to being debt free and fast -tracking statewide climate -action goals, MBCP has made notable accomplishments in in all three of its focus points during only seven months of operation: Reduction of Greenhouse Gas (GHG) Emissions • MBch oice: Carbon free electricity as default service offering and MBprime: 100% eligible renewables service offering ■ Close to 97% enrollment of customer electricity demand 90 MW, 15 -year New Wind Project to meet 10% of MBCP Annual demand • 125 MW Solar + 38 MW Storage — Long term agreements near completion Affordable rates and customer re -investment • 3% Rebate to all customers - est. $3.5 million applied to customer bills • Higher rates for net energy generation for customers with on-site generation • 2% of gross revenue set aside far customer energy programs - $2.5 million for MBCP customers • Over 230 voluntary customer enrollments to MBprime, MBshare & MBgreen+ Stimulate local economy • Potential for 20 MW of renewable local generation • Employed 19 staff members, working and mostly living locally • Supported the move of GridX's, MBCP Data Manger, to our offices for a Tier 2 local call center ■ Executed $450k in contracts with local service providers • Hosted Cal -CCA 2018 Annual Meeting at Asilomar conference center in Pacific Grove for over 300 attendees • Sponsored and supported over 135 community events and organizations • Examining the feasibility of partnering with MSARD and State Agencies to deploy Electric Vehicle Infrastructure Program for Level II & DC fast chargers in the Tri -County Monterey Bay Community Power (MBCP) provides competitively priced carbon free electricity to our participating communities while reducing the need to consume fossil fuels to generate energy that powers all sectors of aur local economy. MBCP actively promotes the economic vitality of the Monterey Bay Region while preserving its clean water and air. For more information, visit www.rnbcommunitypower.o o 2 Montere Y �` i-i:Cc3f i'fr{,fr�c: �.fF_aln r_f�rrr�; ;ri.:,r'n�-`. Community Power r1�8Cc,n� �t„ ;i y>a: rlrrr.,,ru Cuuntp o['lifartrr r «, 1 Date: March 7, 2 019 r:7ranl 'r C fS'an L -a C. ' Dear San Luis Obispo City and County Leaders, Garrlr�j+ aF-5'rrn Rerlicr, RE: A Unified Central Coast Community Choice Energy Agency i:iafC.'apitaia On behalf of Monterey Bay Community Power, we are honored and thrilled to be c rt,T °f r `r'rr+e! engaging with each of the communities in San Luis Obispo County regarding the City rrt'Gonzales potential of establishing a unified central coast community choice energy agency. Monterey Bay Community Power started from humble and community-based CRY pf Cr.enf eld beginnings back in 2013 and we are now serving over 270,000 customers across 19 cities and counties in Monterey, Santa Cruz and San Benito. We are equally City Offtoll:srer• excited about serving another 30,000 customers in the Cities of San Luis Obispo and Morro Bay in early 2020. iyof; Grin{? Our goal is to outline the benefits for the remaining five cities of Arroyo Grande, CFry vf.srant�rey Atascad ero, Grover Beach, Paso Robles, Pismo Beach as well as the County of San Luis Obispo to explore and hopefully join our joint powers authority in 201.9 to �fr�° �f YucFfic r,1;;: ' begin carbon -free electric service in 2021.Our proven track record of sound financial standing, experience in power procurement as well as delivering considerable economic value to our current customer base is a tremendous opportunity for each of your communities to maximize value for your constituents while providing choice and supporting a locally controlled agency. We appreciate your time and consideration and our team is available to answer t°.ity or Scotts any questions or to continue the conversation about the potential of community choice energy in San Luis Obispo County. Regards, l� .i qn r( Eftn - Tom Habashi, CEO Monterey Bay Community Power Authority �`ir.-PfA14r•rq.t;qy: Wnterey Bay COMMILirtity Paw»r 70) Gflrde, Cnur[• Suite 3110, Monterey- !'a 93940 tiro AIEN Monterey Bay Communetu Power Preliminary Cost Savings for all customers in the City of Atascadero (5 year projection from 2021- 2025)* City of Atascadero Bill Savings 20212022 � 2022 2023 2024 2024 2025 Total Total Scenario 1- 396 Customer Rebate Rebate (%) 3% 3% 3% 8% 8% 8% 896 Residential.0221 - {2021120221 then 8% Customer Residential $ 101,077 $ 101,077 $ 269,538 $ 269,538 $ 269,538 $ 1,010,767 Rebate (2023 - 2025) Commercial $ 175,468 $ 175,468 $ 467,914 $ 467,914 $ 467,914 $ 1,754,676 Total ($) $ 276,544 $ 276,544 $ 737,451. $ 737,451 $ 737,451 $ 2,765,443 ScenarRebate 2 - 496 Customer Rebate (%) 31,481,250 496 4% 8% 4% 8% 8% 8% - 12021io Ld21Rebate then 896 Customer Residential $ 134,769 $ 134,769 $ 269,538 $ 269,538 $ 269,538 $ 1,078,151 Rebate 2023 - 20z5 Commercial $ 233,957 $ 233,957 $ 467,914 $ 467,914 $ 467,914 $ 1,871,654 Total ($) $ 368,726 $ 368,726 $ 737,451 $ 737,451 $ 737,451 $ 2,949,806 Preliminary Cost Savings for all customers in San Luis Obispo County (5 year projection from 2021- 2025)* Entire San Luis Obispo County Bill Savings 2021 2022 2023 2024 2025 Total Scenario 1- 396 Customer Rebate Rebate (%) 3% 3% 8% 8% 8% - Residential.0221 $ 1,107,976 $ 1,107,976 $ 2,954,602 $ 2,954,602 $ 2,954,602 $ 11,079,758 202112then 8% Customer Commercial $ 2,040,149 $ 2,040,149 $ 5,440,398 $ 5,440,398 $ 5,440,398 $ 20,401,492 Rebate [2023-2025] Total ($) $ 3,148,125 $ 3,148,125 $ 8,395,000 $ 8,395,000 $ 8,395,000 $ 31,481,250 Scenario 2 - 4% Customer Rebate Rebate (%) 4% 4% 8% 8% 8% - Residential $ 1,477,301$ 1,477,301 $ 2,954,602 $ 2,954,602 $ 2,954,602 $ 11,818,409 (2021/20221 then 9%Customer Commercial $ 2,720,199 $ 2,720,199 $ 5,440,398 $ 5,440,398 $ 5,440,398 $ 21,761,591 Rebate {2023 - 20251 Total ($j $ 3,310,435 $ 3,310,435 $ 6,620,871 $ 6,620,871 $ 6,620,871 $ - 33,580,000 *both tables of analysis are subject to future changes with the Power Charge Indifference Adjustment & RG&E's status as an electric supplier Atascadero City Council 6,25,2019 LOCAL CHOICE • CLEAN ENERGY • ECONOMIC VITALITY HOWTHE GRID WORKS: "s BIG BATHTUB"' ELEC"TKr-VV LSCa�-2D �LEcrRtiCnyl?*Ls kT A Po Q?, R -KT acgas5 T NcvlNCe oto zi2rws,�+iSStior+ arses 40LIp&e is Ir<,eeAS0 A -f 5-TAltGN EI.�CTR V-l7Y is C► ep -To VaIR tyerGKBwQ�caD "Ct�NS�e�S aN I tV "WIWN L it -1Q S -me N%ev1,6okAAvvD 1,`o�.-TAb2 OTHC T94,6FbRAW CN -rs K FrLe D!( P?,� e�eR►NG YaL�2 H:USe Monterey Bay Community Power What is Community Choice Aggregation? Community Choice Aggregators (CCAs) are governmental entities formed by cities and counties to serve the energy requirements of their local residents and businesses. HOW COM MUNITYCHOICE WORKS? "A Partnership," ELECTRICITY t CCAs source from carbon -free & renewable suppliers DELIVERY Investor owner Utility transmits & distributes the electrons CUSTOMER Same Service at� lower prices Monterey Bay Community Power T_ WHYCOMMUNITYCHOICE? Monterey Bay Community Powe,- • Customer choice • Local, transparent decision- making • Rate competition / cost savings • Community-based energy programs Monterey Bay Community Power WHO WE ARE CITY OFCk - VAT 11.11 cDLLI5TE RCAuo�� , ;� , Houe oul,G!i mie C A L 1 F 0 R N I A p.' G a ' Santa Cruz County 'Y85❑ ' g Vax,yi Benito County Monterey A— xsss Morro Bay uwaka VIUNT:4& " MCI Ile W �, o .tom f 5��'i v m nit �P Monterey Bay AL1Fe�� Community Power F HOW WE ARE GOVERNED Policy Board: Operations Board: Community Advisory Council: Meets 4 Times Annually Meets 8 Times Annually Meets Monthly MBCP JOINT POWER AUTHORITY City representative currently serving in a shared seat. County of City of City of County of City of County of Santa Cruz 4 Santa Cruz Watsonville Monterey Salinas San Benito coastal C ities Marina* Sand City Seaside peninsula Cities Carmel Monterey` Pacific Grove 5alinas Clio Greenfield Gonzales' Soledad San Benito C1ties Hollister San Juan Bautista* Santa Cruz Cities Capitola Scotts Valley' San, Luis Obispo Cities San Luis Obispo* Morro Bay MontereyBay Community Power MBCP MID -YEAR FY:L8/3-9 BUDGET Est. $220 million dollar budget as of March 2019 $44 nice) Ono■ $10,455,5% ■ Cost of Energy Adminstrative Expenses $165,689, 75% Net Revenue Program Rebate Reserve MBCP BUDGET PHILOSOPHY - 2% of revenue - 20% of surplus - 80% of surplus 2% of revenue - 30% of surplus - 70% of surplus - 2% of revenue - 40% of surplus - 60% of surplus - 50% of surplus 50% of surplus 50% of surplus - 50% of surplus - 50% of surplus - 50% of surplus - Ensure fiscal stability, reduce customer rates and invest in local economy - Achieve reserve target of 50% of operating expenses as quickly as possible - currently, over $60 million in cash reserves (end of March 2019) EST. POWER MIXCOMPARISON MBCP ■ Eligible Renewables mi Carbon Free PG&E a Eligible Renewables iii Carbon Free Natural Gas 0 System Power Natural Gas N System Power NEW RENEWABLE ENERGY PROJECTS SVCEJMBCP Procurement (55%/45%) 128MW Solar, 40MW Storage • Rosamond, Kern County • 2 PPAs: EDF/Big Beau Solar • online: 202-2 • Term: 20 years 15oMW Solar, 45MW Storage • Lemore, Kings County • 2 PPAs: Recurrent/RE Slate 1 • online: 2021 • Term: 15 years 20oMW Wind • New Mexico • 2 PPAs: Duran Mesa, LLC/Corona Wind Project • online: 2021 • Term: 13 years RE Projects Account for 20% of Annual Load Monterey Bay Community Power COMPARISON OF COSTS Utility 2017 Average Rate (cents/kWh) PG&E's rate is this much higher than Nuni's Rate, as a % PG&E 20.06 City of Santa Clara 11.65 72% City of Palo Alto 13.29 51% City of Alameda 16.93 18% City & County of San Francisco 11.53 74% All California Municipal Utilities 16.02 25% 2017 Utility Bundled Retail Sales- Total (Datafrom forms EIA -861- schedules 4A & 4D and EIA -861S) MBCP SERVICE OFFERINGS & REBATE OPTIONS Service Offerings �MBCholca� Default Carbon Free Service offering (matches PG&E rates plus 3.7% rebate) MBPrime;" Opt -Up to 100% Renewable Service Offering ($0.01/kWh more than Mbchoice plus 3.7% rebate) Rebate Options 4QMBqree �AICXMBshare� Invest your 3.7% rebate towards local energy projects Share your 3.7% to support climate efforts with local foundations Monterey Bay Community Power SAME BILL -CUSTOMER SAVINGS ENERGY STATEMENT Account No. 1023458789-0 Statement Date: 09/07/2018 www. pge.com/MyEnergyr Due Date: 09/28/2018 Service For: 1`011CP CUSTOMER 1234 h.1A.IN STREET MONTEREY. CA 93940 Questions about your bill? Monday -Friday 7 a.m.-9 p m. Saturday 8 a.m._8 p.m. Phone: 1-800-743-5000 www p9e com. MyEnergy Local Office Address 7311 GARDEN RD %IONTEREY, CA 93940 Your Account Summary Amount Due on Previous Statement 520716 Payment(s) Received Since Last Statement -20716 Previous Unpaid Balance 50.04 0 Current PG&E Electric Delivery Charges 5109.14 Monterey Bay Community Power Electric Generation Charges 44.37 —0 Current Gas Charges 18.35 1 _VTotal Amount Due by 0912812018 171— O vow.-e-a-rvl aµ0urtl wi.`5%eye u, C r rr e'kjr L:. bm i err u?C,je Vyr l IU summer arxf Writer months vprr Trey t - Baserrne agmvance rx rendes ter base Treads at an arroreadr pnce ane enc Drapes consanat,on carr arlorwnce is assrgned based m tree Ger We YAW@ yoj I•,e the season and your NMI sdxca As 3,¢U UW nor& energy, you pay r* M ear usag. any Usage a.or yout ba%*IWW anCna^C C *4I tie cheeped at a tug hLv pace lirgh Usage: 4n ncreosaa pr -w per ktitih wnene.er elecwvly 4jcage 0scveds four Irmos era Base i ne A/o,vance [Trot t i in a dlimg peed Tns charge does rd appy ,r, Bine o' -Ow rete Paas CornpehWn TransA:on C harges eC T C r 079 06MY-r, ry, Energy Coal Recovery An+rnmr -00.7 PCIA :1364 Yaxgs ON Other i7 1_1 LF-' Tout EWonc Charges s lm m for re=lated -Ftidt- r vys W Pala.: cit. M -J kkKJJ� CGMlf ft, a L Astd.i V or Wj&L C:crrorefkn d:Ota r.i.: r: ii.ri ar.J Lkl jr,. S; --- [. F A;I r%!-16 'i_ r, -J. Monterey Bay Community Power COST SAVINGS FOR ATASCADER0 Scenario 1: 3% Customer Rebate (202112022) then 8% $25763,443 Customer Rebate (2023 — 2025) - Residential Customer Savings: $1,016,767 - Business Customer Savings: $1,764,676 Scenario 2: 4% Customer Rebate (202112022) then 8% $259499806 Customer Rebate (2023 --- 2025) - Residential Customer Savings: $1,678,151 - Business Customer Savings: $1,871,664 Monterey Bay Community Power DISCOUNT PROGRAMS • Discount programs remain the same with MBCP service. • PG&E employees still receive their T&D discount • CARE, FERA, LIHEAP and Medical Baseline Allowance are provided in full to MBCP customers; no need to reapply. Monterey Bay Community Power ROOFTOP SOLAR CUSTOMERS Premium Rates for excess solar generation: ($0.06135/kWh) Annual or Monthly True Up 100% Default Carbon Free Electricity Service 3% Rebate for Net Consumers of Electricity Wholesale rates for excess solar generation: ($0.02875/kWh) Annual or Monthly True Up 80% Default Carbon Free Electricity Service Zero Rebate for Net Consumers of Electricity Monterey Bay Community Power MBCP REBATE Residential Customers 5+% rebate Annually on accrued generation charges (12 months previous) Small to Medium Sized Commercial/Agricultural Customers 5+% Bi -annual for accrued generation charges (6 months previous) Large Commercial/Agricultural Customers 5+% rebate Quarterly on accrued generation charges (3 months previous) 4Q Monterey Bay Commkunity Power LOCAL CHOICE ' CLEAN ENERGY ECONOMIC VITALITY Monterey Bay Community Power RATES- RESIDENTIAL E3. COMPARISON Generation Rate ($lkwh ) Delivery Rate ($/kWh ) PG&E PCIA ($/kWh) PG&E Franchise Fee ($/kWh ) Monthly Generation Cost ($/kWh) Monthly Cost of Electricity ($/kWh ) Annual Net Cost of Electricity ($/kWh)* *MBCP 3.7% rebate applied $0.11194 $0.0779 $0.14125 NIA $0.14125 $0.03345 NIA $0.00058 $.011194 $.011194 $0.25842 $0.25842 $0.2503` Monterey Bay Community Power MBCP ACCOMPLISHMENTS • MBchoice — carbon free offering • MBprime — 100% renewable offering • Rebate re -investment 11K FOR YOUR RER 1 YOUR DECEMBER B- 26 Full time Local Jobs • Hundreds from renewable projects • $1 million — Energy programs • $4.4 million — Customerrebates • $6 million — EV infrastructure • Over $53 Million in Reserves • Debt Service an( Loans Paid Off r • Contracts with Local Vendors Over $500,000 • 215 MWs of New Renewables • MicroGrid Pilot Clean 4OMonterey Bay Community Power MBCP ENERGY PROGRAMS Overview - 2% of gross revenue set aside per year: $4.5 million - Energy Programs Policy -- transportation electrification, building electrification and distributed energy resources Current programs - Monterey Bay eVIP - si.1 million - $725k from MBCP - $400k from MB Air District - Project Sunshine - stook Monterey Bay Community Power MBCP SMARTCONNECT MICROGRID PROGRAM Overview - Connects customers with energy performance contractors to build out loca I energy supply faster and more cost effectively Benefits - Invests in local economy - Contributes towards local renewable energy generation development - Reduces market risk for customers through acquisition of energy at a fixed price smartuonnect Monterey Bay Community Power ENROLLMENT & OUTREACH Update on Progress in SLO - Paso Robles, Pismo Beach & Grover Beach voted to join - Arroyo Grande approved 1st step to join - County of San Luis Obispo is Investigating Enrollment - 4 mailers required by law - Aligning NEM enrollments with true up dates - Community outreach Plan Monterey Bay Community Power SLO COUNTY OUTREACH TO DATE February to April 2019 Events/Meetings 2/19 —Meeting with Sup. Peschong 2/22 — Meeting with CM from Pismo Beach 2/22 — Meeting with CM & Mayor—Grover Beach 3/7—Meeting with Sups. Gibson & Hill 317— Dinner with Mayors —Grover Beach Pismo Beach, San Luis Obispo and Atascadero 3/8—City ManagersPresentation 3/11- Meeting with Sups. Compton & Arnold 3119 —Meeting with CMs from Paso Robles & Atascadero 4/2—Paso Robles City Council Meeting 419—Arroyo Grande Council Meeting 4/10 —Dave Congalton Radio Show 4115 — Grover Beach Council Meeting 4/16 — Pismo Beach Council Meeting 4/25 — Central Coast Voices Radio Show May to June 2019 Events/Meetings 512— Presentation to Paso Chamber 517— Presentation to COLAB 5/8 — Paso Robles Study Session 5115 — North County Public Workshop 5/16—South County Public Workshop 5120 —Meeting with Atascadero Mayor Moreno and Mayor Pro Tem Bourbeau 5/20—Grover Beach CityCouncilVote 5/21—Santa Maria Presentation 6/3—Grover Beach 2,d Reading of Ordinance 6/4— Pismo Beach Vote 6121—Atascadero Chamber Study Session 6/13 - SLO Chamber Study Session 6/18 - Pismo Beach 2nd Reading of Ordinance 6125—Atascadero Presentation Monterey Bay Community Power Est. TIMELINE TO JOIN MRCP Action Item�r Council meeting to present MBCP & CCE option to City April/May/June 2019 Council. Introduce and pass resolution to join MBCP and conduct first reading of the CCE ordinance Public hearing to conduct second reading of the CCE ordinance Submit required documents to MBCP MBCP Policy Board Meeting to accept the new member jurisdiction MCU for shared board seat MBCP Policy Board Meeting to approve and submit the Implementation Plan to the CPUC. Program Implementation and Operations Preparation Begin MBCP Service May/June 2019 May/June/July 2019 Preference of August 15, 2019 Sept. 2019 Sept. — Oct. 2019 Nov. — Dec. 2019 Mid 2020 — Late 2020 Early 2021 Monterey Bay Community Power PROPOSED BOARD REPRESENTATION County of San Luis Obispo 1 Seat on Policy & operations Paso Robles & Atascadero Arroyo Grande, Pismo Beach Grover Beach & Boards Shared Seat on Policy & operations Boards Shared Seat on Policy & operations Boards Morro Bay & San Luis Obispo Shared Seat on Policy & Operations Boards Note: Community Advisory Council representation will be MontereyBay updated per by-laws amendment Community Power A UNIFIED CENTRAL COAST CCA Travel Dist a,he cm Benefits - z CCA serving all of SLo county to maximize benefits - Proven customer savings - Delivery of local energy programs - Local decision making - Potential of offshore wind and local development Monterey Bay Community Power H OW TO CONTACT M BC P Ca www.mbcommunitypower.org 0@4 info@mbcp.org 0 i.888.9og. M BCP C) montereybaycommunitypower Fn,) mbcommunitypwr g) mbcommunitypower Fallow us online, and check our extensive FAQ section on the website. 7o Garden Court Suite 300 Monterey, CA 93940 Monterey Bay Community Power OPERATIONALAGENCIES IN CALIFORNIA 2010 f0"**N MCE Clean Energy My community. My choice. 2014 �-lean Powea Local. Renewable. Ours. 2017 TSILICON VALLEY CLEAN ENERGY CHO CFLFHERv^Y REDWOOD COAST EnergyAuthority i irima 2018 Monterey Bay C plA POWER Community Power ALLIANCE h 0 4'5 AsTiEw 1Cjf RANCHO 0,� CNERGY 201 5 -=41P- ENERGY - MIRAGE g:T':IOR" JUA ¢4"'°'' "°"`'°"''°°'''"`"d SULANAENERCYALLIANCE THE POWER TO CHOO■F , BAY nh «� el'I�r /210NEEI? ;t1 C1eanPowet SF �ftm� VALLEY 201 6 5ame5ervice • peonerfnergy PENINSULA SAN_ JOSE •� !- DESERT CLEAN ENERGY THING Q I Y 0111"UN11 CLEAN ENERGY CLEAN ENERGY ENERGY COMMUNITY POWER 'Q Monterey Bay Community Power AgrN i" -w Monterey Bay Community Power FINANCIAL STATEMENTS Periods Ended September 30, zo18 and z017 WITH REPORT OF INDEPENDENT AUDITORS MONTEREY BAY COMMUNITY POWER AUTHORITY PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 TABLE OF CONTENTS Independent Auditors' Report ..................................................... . . ........... Management's Discussion and Analysis .................................................... Basic Financial Statements: Statements of Net Position...................................................... . ..... 9 Statements of Revenues, Expenses and Changes in Net Position ................... 10 Statements of Cash Flows............................................................ 11 Notes to the Basic Financial Statements ........................................... 13 ■. • PISENTI & BRINKER LLP Certified Public Accouncan[s Advisors Independent Auditor's Report To the Board of Directors Monterey Bay Community Power Monterey, California Report on the Financial Statements 3562 Round Barn Circte, Suite 300 Santa Rosa, CA 95403 (707) 542-3343 office (707) 527-5608 Fa)l pbllp.com We have audited the accompanying financial statements of Monterey Bay Community Power (MRCP), as of and for the year ended September 30, 2018 and the period from February 21, 2017 through September 30, 2017, and the related notes to the financial statements, which collectively comprise MBCP's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of MBCP as of September 30, 2018 and September 30, 2017, and the changes in financial position and cash flows for the periods then ended in accordance with accounting principles generally accepted in the United States of America. SANTA ROSA PETALUMA NAPA RS1N US RfllanCe R S AA RSM US A[liance member firms are separate and independent businesses and legal entities chat are responsible for their own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tan, and consulting Firms. Members of RSM US Alliance have access to RShI international resources through RSM US LLP but are not member Firms of RSM lnternadonat. Independent Auditor's Report (continued) Other Matters Accounting principles generally accepted in the United States of America require that the management's discussion and analysis as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Santa Rosa, California February 5, 2019 MONTEREY BAY COMMUNITY POWER AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 The Management's Discussion and Analysis provides an overview of Monterey Bay Community Power Authority's (MBCP) financial activities as of and for the period ended September 30, 2018, and from inception to September 30, 2017. The information presented here should be considered in conjunction with the audited financial statements. BACKGROUND The formation of MBCP was made possible in 2002 by the passage of California Assembly Bill 117, enabling communities to purchase power on behalf of their residents and businesses and creating competition in power generation. MBCP was created as a California Joint Powers Authority (JPA) on February 21, 2017. MRCP was formed to provide locally controlled electricity to residents and businesses in Monterey, San Benito and Santa Cruz Counties (Tri -Counties). In addition to providing electric power at competitive costs, MBCP provides other benefits within the Tri -Counties, including reducing greenhouse gas emissions related to the use of power; providing electric power and other forms of energy to customers at affordable rates that are competitive with the incumbent utility; carrying out programs to reduce energy consumption; stimulating and sustaining the local economy by lowering electric rates and creating local jobs as a result of MBCP's CCE program; as well as promoting long -tern electric rate stability and energy security and reliability for residents through local control of electric generation resources. MBCP is governed by two Boards, a Policy Board and an Operations Board. Each Board is comprised of 11 members with 11 alternates representing the participating communities. Policy Board Members are elected officials from MBCP member communities; and Operations Board Members are appointed executives leading the member cities and counties. MBCP has the rights and powers to set rates for the services it furnishes, incur indebtedness, and issue bonds or other obligations. MBCP is responsible for the acquisition of electric power for its service area. MBCP serves the unincorporated areas of the Counties of Monterey, San Benito, Santa Cruz, and the cities and towns of Capitola, Carmel, Gonzales, Greenfield, Hollister, Marina, Monterey, Pacific Grove, Salinas, San Juan Bautista, Sand City, Santa Cruz, Scotts Valley, Seaside, Soledad and Watsonville. In December 2018, MBCP's Board of Directors authorized the expansion of services to the City of San Luis Obispo and the City of Morro Bay with the start of service expected in January 2020. Prior to the creation of Monterey Bay Community Power Authority as a JPA, the County of Santa Cruz managed the financial and administrative activities related to the formation of this community choice aggregation program. Pursuant to the JPA, MBCP received a loan from the County of Santa Cruz to provide funding for costs to initiate the entity and its programs incurred prior to formation and until MBCP was able to procure additional financing. 3 MONTEREY BAY COMMUNITY POWER AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 In March 2018, MRCP began providing service to its first approximately 40,000 customer accounts as part of its initial enrollment phase. This initial phase included commercial, agricultural, industrial and municipal accounts. Residential enrollment began in July 2018. At the end of the fiscal year ended September 30, 2018 MBCP had approximately 270,000 enrolled customers. Financial Reporting MBCP presents its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) for proprietary funds, as prescribed by the Governmental Accounting Standards Board (GASB), Contents of this report This reflects all MBCP's activities that are funded through the sale of electricity to its customers and is divided into the following sections: • Management discussion and analysis, which provides an overview of financial results for the periods presented. • The basic financial statements, which offer information on MBCP's financial status: o The Statements of Net Position includes all of MBCP's assets, liabilities, and net position using the accrual basis of accounting and include information about the nature and amount of resources and obligations at a specific point in time. o The Statements of Revenues, Expenses, and Changes in Net Position report all of MBCP's revenue and expenses for the periods presented. o The Statements of Cash Flows report the cash provided and used by operating activities, as well as other sources and uses, such as financing and investing activities. o Notes to the Basic Financial Statements provide additional details and information related to the basic financial statements. 1i MONTEREY SAY COMMUNITY POWER AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 FINANCIAL HIGHLIGHTS The following table is a summary of MBCP's assets, liabilities, and net position as of September 30; Current assets Noncurrent assets Capital assets, net Other noncurrent assets Total noncurrent assets Total assets Current liabilities Total liabilities Net position Investment in capital assets Restricted for security collateral Unrestricted (deficit) Total net position (deficit) Current Assets 2018 2017 $ 66,884,917 $ 263,759 119,355 383,114 67,268,031 26,788,999 363,369 26,788,999 363,369 263,759 3,600,000 36,615,273 (363,369) $ 40,479,032 $ (363,369) Current assets reached $66,885,000 by the end of September 30, 2018 and are mostly comprised of the following major categories: $21,857,000 in cash and restricted cash, $23,775,000 in accounts receivable, $15,070,000 in accrued revenue, and $5,151,000 in prepaid expenses. Cash is held in both interest and non-interest earning bank accounts. $3,600,000 in cash is restricted for use as part of a security agreement with various suppliers. Accrued revenue differs from accounts receivable in that it is the result of electricity use by MBCP customers before invoicing to those customers has occurred. Prepaid expenses consist of purchases of electricity and capacity for delivery after the fiscal year. Capital Assets 2018 results Capital assets were $264,000, net of accumulated depreciation, primarily reflecting the acquisition of furniture and equipment accompanying MBCP's establishing its administrative office during the year. This amount is reported net of depreciation. MRCP does not own assets used for electric generation or distribution. MONTEREY BAY COMMUNITY POWER AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 Other Noncurrent Assets 2018 results Other noncurrent assets of $119,000 consists of various deposits for regulatory and other operating purposes. Included are deposit postings with the California Public Utilities Commission (CPUC) and MBCP's scheduling coordinator responsible for interacting directly with the electricity market through the California Independent System Operator. Current Liabilities Current liabilities of $26,789,000 at the end of 2018 consists primarily of $22,625,000 for the cost of electricity delivered to customers that is not yet due to be paid by MRCP. Other liabilities include $1,899,000 in customer rebate liabilities, $1,201,000 in user taxes and surcharges due to other governments, and $876,000 in accounts payable. Customer rebate liabilities reflect the expected savings rebate that has yet to be applied to customers' accounts at the fiscal year end. MBCP charges and collects various state and local taxes from customers. During the fiscal years 2018 and 2017, MBCP borrowed funds from the County of Santa Cruz as well as a separate financial institution. MBCP repaid all of its debt in September 2018 and had no debt at the end of fiscal year 2018. Results of Operations The following table is a summary of MBCP's results of operations as of September 30: 2018 2017 Operating revenues $ 117,097,905 $ Operating expenses (76,135,084) (363,369) Nonoperating revenues 14,248 Nonoperating expenses (134,668) Total nonoperating revenues (expenses) 120,420) Change in net position $ 40,842,401 $ (363,369} E MONTEREY BAY COMMUNITY POWER AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS PERIODS ENDED SEPTEMBER 30, 2418 AND 2017 Operating Revenues MBCP enrolled its first wave of commercial, agricultural, industrial and municipal customer accounts in March 2018. In July 2018, MBCP began to phase in residential accounts, its final planned phase of customers. Operating revenues consist of electricity sales to these customers. MBCP did not have significant operating revenue from any other source during the year. MBCP's gross profit margin for 2019 was approximately 40%, as operating revenues exceeded the cost of electricity by $46,529,000. Operating Expenses MBCP's largest operating expense for fiscal year 2018 is the purchase of electricity needed to provide for retail customer use. These power supply costs greatly exceed all other operating expenses. MBCP procures energy from a variety of sources and focuses on purchasing at competitive costs and maintaining a balanced renewable power portfolio. Expenses for staff compensation, consulting, data management and other general and administrative expenses increased in 2018 as the organization continued to grow with business demands. ECONOMIC OUTLOOK Opportunities abound and MBCP's path is clear, guided by lasting values and a well-defined mission. In less than one year, we have negotiated a long-term agreement for wind generation and will be executing two other agreements for solar and storage capacity. The expected energy from these projects combined will be enough to meet 20% of MBCP's electricity demand. However, threats are also looming. Sensing the popularity of the Community Choice model and forecasting that Community Choice Aggregators (CCAs) are likely to dominate the California electricity -generation market in the next ten years, the incumbent investor-owned utility and independent power producers are targeting legislators and regulators. Their efforts to tilt the playing field in their favor and slow CCA expansion are relentless. As of January 2019, MBCP serves approximately 97.5% of all eligible customers in the Tri - Counties, and is expected to remain stable at that rate of participation into the future. MBCP also filed an implementation plan in December 2018 with the California Public Utilities Commission (CPUC) for expansion into the City of San Luis Obispo and the City of Morro Bay with the expected start of service in January 2020. In addition, San Luis Obispo County is likely to become a major hub for developing and integrating new renewable resources in California. Offshore wind is being considered in Morro Bay and the decommissioning of Diablo Canyon nuclear facilities in 2025 will open the door for developing storage facilities that are becoming key to the proliferation of renewable resources in California. Having access to these resources will advance MBCP's goal for 100% renewables. 7 MONTEREY BAY COMMUNITY POWER AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 ECONOMIC OUTLOOK (continued) MBCP will begin developing programs that focus on a variety of quantitative and qualitative objectives, including Greenhouse Gas (GHG) emissions reduction, incremental local jobs, brand awareness, and access to technologies for disadvantaged communities: Transportation Electrification programs are designed to encourage the community to switch from fossil fuel -powered vehicles to clean electric options. • Building Electrification programs will motivate customers to upgrade building stock by switching from gas to clean electric appliances and efficient building equipment. • Local Energy Resources programs prioritize opportunities to support local development, reduce grid dependence and include storage and demand management programs. MBCP has a strong focus on building credit capacity through building cash reserves and entering into favorable energy purchase commitments with the intent of securing a strong credit rating in 2021. This will help create a stable environment for MBCP and its ratepayers. REQUEST FOR ]INFORMATION This financial report is designed to provide MBCP's customers and creditors with a general overview of the organization's finances and to demonstrate MBCP's accountability for the funds under its stewardship. Please address any questions about this report or requests for additional financial information to 70 Garden Court, Suite 300, Monterey, CA 93940. Respectfully submitted, Tom Habashi, Chief Executive Officer 0 BASIC FINANCIAL STATEMENTS MONTEREY SAY COMMUNITY POWER AUTHORITY STATEMENTS OF NET POSITION SEPTEMBER 30, 2018 AND 2017 ASSETS Current assets Cash and cash equivalents Accounts receivable, net of allowance Energy settlements receivable Accrued revenue Other receivables Prepaid expenses Restricted cash Total current assets Noncurrent assets Capital assets, net of depreciation Deposits Total noncurrent assets Total assets LIABILITIES Current liabMes Accounts payable Accrued cost of electricity Accrued payroll and benefits Other accrued liabilities Customer rebate liabilities User taxes and surcharges due to other govenunents Loan payable to Santa Cruz County Total current liabilities NET POSITION Investment in capital assets Restricted for security collateral Unrestricted (deficit) Total net position {deficit} 2018 2017 $ 18,257,288 23,775,003 1,027,317 15,069,597 4,725 5,150,987 3,600,000 M111-r-I&IVA 263,759 119,355 383,114 67,268,031 875,060 22,625,162 164,400 23,200 1,898,945 1 201 232 1,304 362,065 26,788,999 363,369 263,759 3,600,000 36,615,273 $ 40,479,032 (363,369) $ (363,369) The accompanying notes are an integral part of these financial statements. 9 MONTEREY BAY COMMUNITY POWER AUTHORITY STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 2018 OPERATING REVENUES Electricity sales, net of allowance $ 117,097,905 Total operating revenues 117,097,905 OPERATING EXPENSES Cost of electricity 70,469,276 Staff compensation and benefits 1,598,439 Data management 1,178,238 Service fees - PG&E 280,918 Consultants and other professional fees 1,067,506 Legal 355,008 Communications and noticing 600,734 General and administration 542,662 Depreciation 42,303 Total operating expenses 76,135,084 Operating income (loss) 40,962,821 NONOPERATING REVENUES (EXPENSES) Interest income 13,156 Interest expense (134,668) Miscellaneous income 1,092 Total nonoperating revenues (expenses) (120,420) CHANGE IN NET POSITION 40,842,401 Net position (deficit) at beginning of period (363,369) Net position (deficit) at end ofperiod $ 40,479,032 Inception through September 30, 2017 340,002 22,063 1,304 363,369 (363,369) (363,369) $ {363,369} The accompanying notes are an integral part of these financial statements. 10 MONTEREY DAY COMMUNITY POWER AUTHORITY STATEMENTS OF CASH FLOWS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from electricity sales Receipts from other income Tax and surcharge receipts from customers Energy settlements received Deposits and collateral received Payments to purchase electricity Payments for staff compensation and benefits Payments for consultants and other professional fees Payments for general and administration Payments of deposits and collateral User tax and surcharge payments to other governments Net cash provided (used) by operating activities CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES Loan proceeds from bank Principal payments on loan from bank and Santa Cruz County Interest and related expense payments Net cash provided (used) by non -capital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets CASH FLOWS FROM INVESTING ACTIVITIES Interest income received Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of period Reconciliation to the Statement of Net Position. Cash and cash equivalents (unrestricted) Restricted cash Cash and cash equivalents 2018 Inception to September 30, 2017 $ 80,608,088 $ - 1,092 - 1,905,778 1,932,084 - 501,375 - (55,893,765) - (1,434,038) - (2,451,759) - (549,777) (620,730) - (1,160,3 84) - 22,837,964 - 5,500,000 - (6,155,903) - (134,668) - (690,571) - (303,261) - 13,156 - 21,857,288 - $ 21,857,288 - $ 18,257,288 - 3,600,000 - $ 21,857,288 $ - Noncash Non -Capital Financing Activities during the period presented: - Expenses of $362,065 were financed directly from loan proceeds during the period ended September 30, 2017 - Expenses of $193,838 were financed directly from loan proceeds during the period ended September 30, 2018 The accompanying notes are an integral part of these financial statements. 11 MONTEREY SAY COMMUNITY POWER AUTHORITY STATEMENTS OF CASH FLOWS (CONTINUED) PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 RECONCILIATION OF OPERATING INCOME (LUSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (Ioss) to net cash provided (used) by operating activities Depreciation expense Revenue reduced for uncollectible accounts Expenses paid directly from loan proceeds Revenue from miscellaneous income (Increase) decrease in accounts receivable (Increase) decrease in energy settlements receivable (Increase) decrease in accrued revenue (Increase) decrease in other receivables (Increase) decrease in prepaid expenses (Increase) decrease in deposits Increase (decrease) in accounts payable Increase (decrease) in accrued cost of electricity Increase (decrease) in accrued payroll and benefits Increase (decrease) in accrued liabilities Increase (decrease) in customer rebate liabilities Increase (decrease) user taxes and surcharges due to other governments Net cash provided (used) by operating activities 2018 Inception through September 30, 2017 $ 40,962,821 $ (363,369) 42,303 - 606,680 - 193,838 362,065 1,092 - (24,381,683) - (1,027,317) - (15,069,597) - (4,725) - (5,150,987) - (119,355) - 871,956 1,304 22,625,162 - 164,399 - 23,200 - 1,898,945 - 1,201,232 - $ 22,837,964 $ - The accompanying notes are an integral part of these financial statements. 12 MONTEREY BAY COMMUNITY POWER AUTHORITY NOTES TO THE BASIC FINANCIAL STATEMENTS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY Monterey Bay Community Power Authority (MBCP) is a joint powers authority created on February 21, 2017 and its voting members consist of the following local governments: Counties Cities and Towns Monterey Capitola Salinas San Benito Carmel San Juan Bautista Santa Cruz Gonzales Sand City Greenfield Santa Cnaz Hollister Scotts Valley Marina Seaside Monterey Soledad Pacific Grove Watsonville MBCP is separate from and derives no financial support from its members. MBCP is governed by two Boards, a Policy Board and an Operations Board. Each Board is comprised of 11 members with I I alternates representing the participating communities. Policy Board Members are elected officials from MBCP member communities; and Operations Board Members are appointed executives leading the members cities and counties. MBCP was formed to study, promote, conduct, operate, and manage energy and energy-related climate change programs, and to exercise all other powers necessary and incidental to accomplishing these objectives. A core function of MBCP is to provide electric service that includes the use of renewable sources under the Community Choice Aggregation Program under California Public Utilities Code Section 366.2. MBCP began its energy delivery operations in March 2018. Electricity is acquired from commercial suppliers and delivered through existing physical infrastructure and equipment managed by Pacific Gas and Electric Company (PG&E). BASIS OF ACCOUNTING MBCP's financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements. 13 MONTEREY BAY COMMUNITY POWER AUTHORITY NOTES TO THE BASIC FINANCIAL STATEMENTS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) MBCP's operations are accounted for as a governmental enterprise fund and are reported using the economic resources measurement focus and the accrual basis of accounting — similar to business enterprises. Accordingly, revenues are recognized when they are earned, and expenses are recognized at the time liabilities are incurred. Enterprise fund type operating statements present increases (revenues) and decreases (expenses) in total net position. Reported net position is segregated into three categories, investment in capital assets, restricted, and unrestricted (deficit). CASH AND CASH EQUIVALENTS For purposes of the Statement of Cash Flows, MBCP has defined cash and cash equivalents to include cash on hand and demand deposits. DEPOSITS Various energy contracts entered into by MBCP require MBCP to provide the supplier with a security deposit. The deposits are generally held for the term of the contract. Deposits are classified as current or noncurrent assets depending on the length of the time the deposits will be held. While these energy contract related deposits make up most of this item, other components of deposits include those for regulatory and other operating purposes. CAPITAL ASSETS AND DEPRECIATION MBCP's policy is to capitalize furniture and equipment valued over $1,000 that is expected to be in service for over one year. Depreciation is computed according to the straight-line method over estimated useful lives of three years for electronic equipment and seven years for furniture and leasehold improvements. MBCP does not own any electric generation assets. OPERATING AND NON-OPERATING REVENUE Revenue from the sale of electricity to customers is considered operating revenue. The vast majority of operating revenue is derived from these sales. Interest income is considered non- operating revenue. 14 MONTEREY BAY COMMUNITY POWER AUTHORITY NOTES TO THE BASIC FINANCIAL STATEMENTS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) REVENUE RECOGNITION MBCP recognizes revenue on the accrual basis. This includes invoices issued to customers during the period and electricity estimated to have been delivered but not yet billed as of the end of the period. Management estimates that a portion of the billed amounts will be uncollectible. Accordingly, an allowance for uncollectible accounts has been recorded. ELECTRICAL POWER PURCHASED Electrical power sold to customers was purchased through several energy suppliers. The cost of power and related delivery costs have been recognized as "cost of electricity" in the Statements of Revenues, Expenses and Changes in Net Position. As part of the security agreement with its main suppliers, MBCP is required to maintain a cash balance of $3,600,000 to ensure funds are available to purchase electrical power. This cash balance is reported as restricted in the Statements of Net Position. MBCP purchases renewable energy as a bundled product consisting of the energy and the associated Renewable Energy Certificates (REC) to comply with external mandates and self- imposed benchmarks. The RECs purchased by MBCP are commonly called "bundled", as they are purchased together with the associated renewable energy actually generated. MBCP procures RECs with the intent to retire them within the compliance period on a voluntary basis above the compliance requirements and does not engage in the activity of building a surplus of RECs. An expense is recognized at the point that the cost of the REC is due and payable to the supplier. STAFFING COSTS MBCP pays employees semi-monthly and fully pays its obligation for health benefits and contributions to its defined contribution retirement plan each month. MBCP is not obligated to provide post -employment healthcare or other fringe benefits and, accordingly, no related liability is recorded in these financial statements. MBCP provides compensated time off, and the related liability is recorded in these financial statements. 15 MONTEREY BAY COMMUNITY POWER AUTHORITY NOTES TO THE BASIC FINANCIAL STATEMENTS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) CUSTOMER REBATES MBCP exactly matches PG&E rates and provides cost -savings through a 3% rebate on customer electric generation charges. Residential customers receive their accumulated rebate as a bill credit on their December bill, Small to Medium Commercial customers receive rebates in June and December, Large Commercial customers receive rebates quarterly (March, rune, September, and December), and NEM customers receive their rebate on their true -up date. The unpaid portion of the rebate is shown in the liability section in the Statements of Net Position. INCOME TAXES MBCP is a joint powers authority under the provision of the California Government Code. As such it is not subject to federal or state income or franchise taxes. ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 2. CASH AND CASH EQUIVALENTS MBCP maintains its cash in several interest and non-interest-bearing accounts. California Government Code Section 16521 requires that banks collateraiize amounts of public funds in excess of the FDIC limit of $250,000 by 110%. MBCP has no deposit or investment policy that addresses a specific type of risk that would impose restrictions beyond this code. Accordingly, the amount of risk is not disclosed. Risk is monitored on an ongoing basis. L MONTEREY BAY COMMUNITY POWER AUTHORITY NOTES TO THE BASIC FINANCIAL STATEMENTS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 3. ACCOUNTS RECEIVABLE AND ENERGY SETTLEMENTS RECEIVABLE ACCOUNTS RECEIVABLE Accounts receivable were as follows: 2018 Accounts receivable from customers $ 24,381,683 Allowance for uncollectible accounts (606,680) Net accounts receivable $ 23,775,003 2017 The majority of account collections will occur within the first few months following customer invoicing. MBCP will continue collection efforts on delinquent accounts that exceed a minimum balance, otherwise the accounts are written off. For delinquent accounts that are not written off and are above a certain level, MBCP will close the account to minimize further loss. The allowance of uncollectible accounts at the end of a period includes amounts billed through the current fiscal year. An allowance for uncollectible accounts is determined on billed amounts as well as on accrued revenue that is not yet billed. MBCP records reserves for its estimated uncollectible accounts as a reduction to the related operating revenue in the Statements of Revenues, Expenses and Changes in Net Position. Charges to reserve for uncollectible accounts were $607,000 at September 30, 2018. ENERGY SETTLEMENTs RECEIVABLE MBCP receives generation scheduling and other services from a scheduling coordinator registered with the California Independent System Operator (CAISO). Energy settlements due from the scheduling coordinator was $1,027,000 as of September 30, 2018. 4. CAPITAL ASSETS Changes in capital assets were as follows: Balances at September 30, 2017 Additions Balances at September 30, 2018 Furniture & Accumulated Equipment _ Depreciation $ - $ - Net 306,062 (42,303) 263,759 $ 306,062 $ (42,303) $ 263,759 17 MONTEREY BAY COMMUNITY POWER AUTHORITY NOTES TO THE BASIC FINANCIAL STATEMENTS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 5. DEBT Loan payable to Santa Cruz County As part of its joint powers agreement, Santa Cruz County agreed to fund certain services, costs, and expenses that were incurred to investigate the feasibility of implementing a community choice aggregation program as well as to provide for other working capital needs. In September 2018, MBCP repaid the entire loan to the County, Notes payable to bank In October 2017, MBCP arranged to borrow up to $13 million from River City Bank to provide cash to pay for energy purchases and operating expense which are due before sufficient cash is to be collected from customers. Principal could be drawn as needed and interest was accrued on the outstanding balance. During 2017-18, MBCP borrowed $5,600,000. The stated maturity date for the non -revolving and revolving credit notes of the arrangement was 12 months from the date of the agreement. Interest was due monthly based on the LIBOR rate plus 1.25% for the non - revolving credit note and 1.75% for the revolving credit note. Both notes were repaid in September 2018. Debt principal activity and balances for all notes and loans were as follows: Beginning Additions Payments Ending Year ended September 30, 2017 Santa Cruz County $ - $ 362,065 $ - $ 362,065 Amounts due within one year 362,065 Amounts due after one year $ - Year ended September 30, 2018 Santa Cruz County Financial Institution Total Amounts due within one year Amounts due after one year $ 362,065 $ 193,838 $ (555,903) - 5,600,000 (5,600,000) $ 362,065 $ 5,793,838 $ (6,155,903) 18 MONTEREY BAY COMMUNITY POWER AUTHORITY NOTES TO THE BASIC FINANCIAL STATEMENTS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 d. DEFINED CONTRIBUTION RETIREMENT PLAN MBCP provides retirement benefits to eligible employees through a 401(x) Retirement Plan (Plan). The Plan is a defined contribution (IRC 401(a)) retirement plan established to provide benefits at retirement to employees of certain qualified employers admitted by the Plan. The Plan is administered by the Public Agency Retirement System (PARS). At September 30, 2018, MBCP had 14 plan participants. MBCP is required to contribute 10% of covered payroll as a match to employee contributions. MBCP contributed approximately $75,000 for the year ended September 30, 2018, the first year the Plan was effective. Plan provisions and contribution requirements as they apply to MBCP are established and may be amended by the Board of Directors. MBCP has elected out of the Social Security system for employees eligible for the 401(a) Plan. MBCP also provides a 457(b) Retirement Plan where employees can make tax deferred contributions. 7. RISK MANAGEMENT MBCP is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; and errors and omissions. During the year ended September 30, 2018, MBCP purchased liability and property insurance from a commercial carrier. Coverage for property, general liability, errors and omissions and non -owned automobile was $2,000,000 with $1,400 deductible. 8. PURCHASE COMMITMENTS MBCP had outstanding non -cancelable power purchase -related commitments of approximately $757 million that have not yet been provided under power purchase agreements that continue to October 2041. The following table is the approximated obligations on existing energy, renewable contracts, and resource adequacy (RA) as of September 30, 2018. Year ended September 30, 2019 $ 137,200,000 2020 141,700,000 2021 55,100,000 2022 32,100,000 2023 29,700,000 2024-2042 350,900,000 Total $ 755,700,000 19 MONTEREY SAY COMMUNITY POWER AUTHORITY NOTES TO THE BASIC FINANCIAL STATEMENTS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 9. OPERATING LEASE During the year ended September 30, 2018, MBCP entered into a 5 year and '/2 month non- cancelable lease for its office premises until December 31, 2022. Rental expense under this lease was approximately $127,000 for 2017-18. Future minimum lease payments under the lease are as follows: Year ended September 30, 2019 $ 232,250 2020 232,260 2021 232,260 2022 232,260 2023 58,065 Total $ 987,105 10. FUTURE GASB PRONOUNCEMENTS The requirements of the following GASB Statement are effective for future fiscal years ending after September 30, 2018: GASB Statement No. 87, Leases, is effective for fiscal years beginning after December 15, 2019. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases. Under this Statement, a lessee is required to recognize a Iease liability and an intangible right -to -use lease asset, thereby enhancing the relevance and consistency of information about governments' leasing activities. OR MONTEREY BAY COMMUNITY POWER AUTHORITY NOTES TO THE BASIC FINANCIAL STATEMENTS PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 11. SUBSEQUENT EVENTS In September 2018, new legislation was passed in the California legislature that expands direct access for commercial customers throughout the State. It is unknown what the impact of this will be on MRCP or how much commercial load might be eligible under this direct access expansion. On October 11, 2018, the California Public Utilities Commission (CPUC) passed. an Alternative Proposed Decision (APD) regarding the calculation of the Power Charge Indifference Adjustment (PCIA). The decision will increase the PCIA for all of MBCP's customers. MBCP is evaluating the specific changes that will be required to MBCP's rates as a result of this decision. In December 2018, MBCP's Board of Directors authorized the expansion of services to the City of San Luis Obispo and the City of Morro Bay with the start of service expected in January 2020. PG&E provides transmission and distribution services to MBCP customers and serves as billing agent for MBCP. PG&E is responsible to collect payments on behalf of MBCP. In January 2019, PG&E announced its intention to file for Chapter 11 bankruptcy protection. MBCP expects the utility will continue to operate in a business -as -usual fashion and the MBCP's revenues collected by PG&E will continue to flow through to MBCP with no material interruption. 21 MAHER ACCOUNTANCY 11011'[ I-11 I A% EN U; 1, - S L' ITF 01)• SA N I:r11=r FL, CA`NI)i1I 1 ACCOUNTANTS' COMPILATION REPORT Board of Directors Monterey Bay Community Power Authority Management is responsible for the accompanying financial statements of Monterey Bay Community Power Authority (a California Joint Powers Authority) which comprise the statement of net position as of March 31, 2419, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements. Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements. Monterey Bay Community Power Authority's annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user's conclusions about the Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence. H44ft A San Rafael, CA April 29, 2019 4TS,4i ]-1 Z49 FAY, .+1;. -M -5,1n6 WER 7L'!!' uVNHllrr�pn.['ll IR 1 MONTEREY BAY COMMUNITY POWER AUTHORITY STATEMENT OF NET POSITION As of March 31, 2419 ASSETS Current assets Cash and cash equivalents Accounts receivable, net of allowance Energy settlements receivable Accrued revenue Other receivables Prepaid expenses Deposits Restricted cash Total current assets Noncurrent assets Capital assets, net of depreciation Deposits Total noncurrent assets Total assets LIABILITIES Current liabilities Accounts payable Accrued cost of electricity Accrued payroll and benefits Other accrued liabilities Customer rebate liabilities User taxes and energy surcharges due to other governments Total current liabilities Investment in capital assets Restricted for security collateral Unrestricted Total net position NET POSITIOitii $ 50,632,265 19,286,936 2,290,613 8,062, 806 17,206 372,521 268,408 3,600,000 84,530,755 243,926 119,630 363,556 84,894,311 480,749 22,640,955 232,441 877,140 1,326,647 1,001,356 26,559,288 243,926 3,600,000 54,491,097 $ 58,335,023 See accountants' compilation report. 2 MONTEREY SAY COMMUNITY POWER AUTHORITY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION October 1, 2018 through March 31, 2019 OPERATING REVENUES Electricity sales, net of allowance OPERATING EXPENSES Cost of electricity Staff compensation and benefits Data management Service fees - PG&E Consultants and other professional fees Legal Communications and noticing General and administration Depreciation Total operating expenses Operating income NONOPERATING REVENUES (EXPENSES) Interest income Gain (loss) on disposal of asset Total nonoperating revenues (expenses) CHANGE IN NET POSITION Net position (deficit) at beginning of period Net position at end of period $ 96,954,848 75,025,149 1,345,357 1,395,087 566,560 387,492 147,108 193,626 427,622 46,319 79,534,320 17,420,528 435,928 (465) 435,463 17,855,991 40,479,032 $ 58,335,023 See accountants' compilation report. 3 MONTEREY BAY COMMUNITY POWER AUTHORITY STATEMENT OF CASH FLOWS October 1, 2018 through March 31, 2019 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from electricity sales Tax and surcharge receipts from customers Energy settlements received Payments to purchase electricity and related Payments for staff compensation and benefits Payments for consultants and other professional fees Payments for general and administration Payments of deposits and collateral Tax and surcharge payments to other governments Net cash provided (used) by operating activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets CASH FLOWS FROM INVESTING ACTIVITIES Interest income received Net cash provided (used) by investing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of period Reconciliation to the Statement of Net Position Cash and cash equivalents (unrestricted) Restricted cash Cash and cash equivalents See accountants' compilation report. $ 107,391,343 2,704,886 6,027,505 (76,985,642) (1,277,318) (2,350,947) (401,375) (268,683) (2,871,509) 31,968,260 (29,211) 435,928 435,928 32,374,977 21,857,288 $ 54,232,265 $ 50,632,265 3,600,000 $ 54,232,265 MONTEREY BAY COMMUNITY POWER AUTHORITY STATEMENT OF CASH FLOWS (continued) October 1, 2018 through March 31, 2019 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income $ 17,420,528 Adjustments to reconcile operating income to net cash provided (used) by operating activities Depreciation expense 45,778 Revenue reduced for uncollectible accounts 500,143 (Increase) decrease in accounts receivable 3,535,112 (Increase) decrease in energy settlements receivable (1,263,296) (Increase) decrease in accrued revenue 7,006,791 (Increase) decrease in other receivables (12,481) (Increase) decrease in prepaid expenses 4,778,466 (Increase) decrease in deposits (268,683) Increase (decrease) in accounts payable (392,509) Increase (decrease) in accrued cost of electricity 468,606 Increase (decrease) in accrued payroll and related 68,039 Increase (decrease) in accrued liabilities 853,940 Increase (decrease) in customer rebate liabilities (572,298) Increase (decrease) taxes and surcharges due to other governments (199,876) Net cash provided (used) by operating activities $ 31,968,260 See accountants' compilation report. C M A W R ACCOUNTANCY ! l o1 FI Fl -I I AVENUF • SV ITE 100 • SAN Et.AFAEL. CA 9:i -)0 1 ACCOUNTANTS' COMPILATION REPORT Board of Directors Monterey Bay Community Power Authority Management is responsible for the accompanying special purpose statement of Monterey Bay Community Power Authority (a California Joint Powers Authority) which comprise the budgetary comparison schedule for the period ended March 31, 2019, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement. The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of the Authority. Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements. Monterey Bay Community Power Authority's annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user's conclusions about the Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence. San Rafael, CA April 29, 2019 FAX 415.4i,),go6 W1i 15 +c�n•�r•. f7h�%r11 ��rl.[v7u REVENUES AND OTHER SOURCES Electricity sales Less uncollectible accounts Net revenue - electricity Investment and miscellaneous income Total revenues and other sources EXPENDITURES AND OTHER USES Current Expenditures Cost of energy Data manager PG&E service fees Staffing Professional services Legal services Marketing and customer enrollment Other general & administration Total current expenditures Other Uses Capital outlay Total Expenditures and Other Uses Surplus Before Rebates and Program MONTEREY BAY COMMUNITY POWER AUTHORITY BUDGETARY COMPARISON SCHEDULE October 1, 2018 through March 31, 2019 2018119 YTD 20181I9 Budget Amended Budget 2018119 YTD Remaining 1 2018119 YTD 2018119 YTD Variance (Under) Actual 1 Amended 2018119 Annual 2018119 Amended Amended Budget Amended Budget Actual Over Budget % Amended Budget Budget Remaining % $ 98,328,509 S 100,028,561 $ 1,700,052 (491,643) (500,143) (8,500) 97,836,866 99,528,418 1,691,552 410,747 4352463 24,716 98,247,614 99,963,881 1,716,267 73,954,179 75,172,647 1,218,468 1,442,792 1,395,087 (47,705) 573,000 566,560 (6,440) 1,507,762 1,345,357 (162,405) 233,804 187,684 (46,120) 193,953 192,108 (1,845) 267,467 193,605 (73,862) 488,194 473,941 (14,253) 78,661,150 79,526,989 865,839 102% $ 221,333,000 $ 121,304,439 55% 102% (1,107,000) (606,857) 55% 102% 220,226,000 120,697,582 50% 106% 978,000 542,537 55% 102% 221,204,000 121,240,119 55% 102°/0 165,689,000 90,516,353 55% 97% 2,703,000 1,307,913 48% 99% 1,143,000 576,440 50% 89% 3,851,000 2,505,643 65% 80% 482,000 294,316 61% 99% 298,000 105,892 36% 72% 945,000 751,395 80% 97% 1,033,000 559,059 54% 101% 176,144,000 96,617,011 55% 51,627 28,637 (22,990) 55% 98,000 69,363 71% 78,712,778 79,555,626 842,848 101% 176,242,000 96,686,374 55% 19,534,836 20,408,255 873,419 44,962,000 24,553,745 55% Rebate expenditures 3,628,532 2,573,570 (1,054,962) Program expenditures 57,961 7,331 (50,630) Surplus After Rebates and Program Expenditures $ 15,848,344 $ 17,827,354 $ 1,979,010 71% 8,112,000 5,538,430 68% 13% 4,405,000 4,397,669 100% $ 32,445,000 S 14,617,646 See accountants' compilation report. 7 MONTEREY BAY COMMUNITY POWER AUTHORITY BUDGET RECONCILIATION TO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION October 1, 2018 through March 31, 2019 CCA Program Surplus/(Deficit) per budgetary comparison schedule; Adjustments needed to reconcile to the changes in net position in the Statement of Revenues, Expenses and Changes in Net Position. Add back capital asset acquisitions Change in Net Position See accountants' compilation report. $ 17,827,354 28,637 S 17,855,991 MONTEREY BAY COMMUNITY POWER AUTHORITY Budget Commentary for significant items October 1, 2018 through March 31, 2019 Budget Item YTD Variance Electric Sales Revenue 1021/0 Staffing Professional Services Legal Costs Marketing and customer enrollment Data Management Services PG&E Fees Other General & Administrative Energy and Related Programs Cost of Energy 89% Comment Sales revenue includes revenues actually billed to customers as well as estimated customer usage during the reporting period that is not yet billed. YTD results are slightly better than budget. Staffing expenses are slightly under budget due to the timing of now hires 90/u This category includes accounting, IT, technical and other consultants. 99% This category incIudes outside legal costs for regulatory and energy procurement needs. 720/. Variance is mostly due to the lower than anticipated costs of recent customer enrollments. 97% Variance is expected to level out through the remainder of the year 99% These are PO&E fees charged on a per customer basis. 97% This category includes occupancy costs, industry membership dues, and other general and administrative costs. Staff has been able to maintain a favorable variance for this budget item. 13% Programs expenses have generally been delayed until later in the fiscal year. 102% This minor variance is primarily due to (1) lower than expected volume used by customers, (2) better than anticipated market prices, and (3) timing difference between projected and actual EIEC deliveries - 9 Financial Dashboard: March 2019 I YTD Month Ag 12% 5% 44% Cam 45% 42% 41% 42% Res 42% 47% 53% March Revenue of $16.9MM accounted for 239 GWh in net retail consumption. This comes in 2 GWh below of the amended forecast. 350 300 Margins continue to run favorable to amended budget, primarily due to true up for previous period cost of energy. The chart to the right shows volume comparison to amended budgeted volume. The charts below display cumulative revenue and margin $ vs amended budget. Monterey Bay Community Power Margin $ Bud - $2.2 Act $1.7 Margin % Bud 14.3%______ Act — 9.8% Monthly Sales Volume (GWh) 250 200 150 100 50 a Oct Nov Dec Jan >_ Actual 264 237 249 236 --�-- Proforma 267 250 258 249 Revenue, $16.9 C.O.E., $15.3 Other Expense, $0.9 INet Income, $0.8 Feb Mar Apr May Jun Jul Aug Sep 242 239 218 241 246 272 275 290 286 268 YTD Revenue $1.7M above budget, Margin dollars are $0.5M ahead of budget. Data Definitions: CUSTOMERS: INVOICED: Unique Customer ESP Account Numbers billed during Calendar Month, ACTIVE: From GridX invoice. REPORTED / SALES VOLUME: Best available estimate of actual meter volume. Currently based on GridX T+8 SQMD Report. REVENUE: Total Company Revenue (net of reserve for uncollectible accounts and customer rebate). ELECTRICITY SALES: Revenue from Electricity less reserve for uncollectible, but gross of customer rebate to match budget methodology. STD MARGIN: Electricity sales (gross of customer rebate) less cost of energy ACTUAL: Same as sales volume above BUDGET: Volumes from 2019.03.21 amended Proforma model used for amended 2018/19 budget. 10 Cumulative YTD Electricity Sales Cumulative YTD Direct Margin $250.0 $60.0 r-----, t $S4 5 $200,0 - Actual $220,2 - fr--- $50.0 Actual — — — Budget i ---- Budget �� f� ���' $40.0 $150.6 r------ $30.0 $24.4. r- --, oo� i ----f $10.0 `�� 'gross of rebate *gross of rebate Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Data Definitions: CUSTOMERS: INVOICED: Unique Customer ESP Account Numbers billed during Calendar Month, ACTIVE: From GridX invoice. REPORTED / SALES VOLUME: Best available estimate of actual meter volume. Currently based on GridX T+8 SQMD Report. REVENUE: Total Company Revenue (net of reserve for uncollectible accounts and customer rebate). ELECTRICITY SALES: Revenue from Electricity less reserve for uncollectible, but gross of customer rebate to match budget methodology. STD MARGIN: Electricity sales (gross of customer rebate) less cost of energy ACTUAL: Same as sales volume above BUDGET: Volumes from 2019.03.21 amended Proforma model used for amended 2018/19 budget. 10 Monterey Bay Community Power Authority Investment Summary October 1, 2018 through March 31, 2019 Return of Investments YTD Gct Nov Dec lan web may Apr May !unIul Aug sm Money Market and other IArerese Earning Accamas S 436,000 $ 25.500 S 43,500 S 70,000 92,000 89,000 116,000 Funds Invested - Average Balance $ 17,887,000 $ 23,946,000 3 37,260,000 5 45,025,000 $ 51,229,000 5 55,785,040 Average APY 1.71% 2.18% 2.25% 2,45% 2,08% 2.50% m Monterey Bay Community Power Authority Accounts Receivable Aging Report As of March 31, 2019 DAYS Total 0-30 31-60 61-90 90-120 Over 120 Accounts Receivable, net 19,287,000 16,176,000 1,160,000 511,000 513,000 927,000 Period % 100% 84% 6°% 3°% 3% 5% 12 Monterey Bay Community Power Authority Personnel Report As of May 8, 2019 .:;i; 10 Chief Executive Offieer 1 1 Board Clerk 1 1 Director of Finance & Administrative Services I I Manager of Human Resources 1 I IT Systems Administrator 1 I Financial Analyst 1 1 Administrative Operations Associate 1 1 Director of Power Supply Resources 1 1 Manager of Emergy Trading 1 1 Manager of Encrgy Contract & Compliance 1 I Power Supply Analyst 1 1 Power Supply Analyst 1 0 Dirmtor of Communications & Energy Programs 1 1 Manager of Energy Communications & Outreach 1 1 Energy Communications Specialist _ l 1 Energy Public Engagement Associate l 1 Energy Public Engagement Associate l 1 Manager of Energy Account Services 1 1 Manager of Energy Business Development 1 1 Manager of Energy Programs 1 1 Energy Programs Coordinator 1 I Temp Staff Support 3 3 General Counsel 1 0 Contract GC from the CTLnV of Monterey until 6/30/2019 Manager of Energy Regulatory and Legislative Affairs 1 0 Recruitment in progmss Ertcrgy Rcgulatory and Legislative Analyst 1 0 Total 27 23 Joining Monterey Bay Community Power (MBCP) is the most cost-effective solution to empower communities in San Luis Obispo County with choice and electricity savings. Community Choice Aggregation (CCA) delivers more local control, cost savings, innovative energy options, and impactful energy programs than the alternative. The cities of San Luis Obispo and Morro Bay elected to join MBCP in 2018 in order to take control of their ratepayer dollars to expand consumer choice, reduce utility costs, and invest in California's renewable energy projects. Those same benefits have inspired cities and counties throughout California to follow suit and pursue community choice energy through approximately 20 CCA agencies, serving over three million customers. 0 Local Control & Economic Benefits The cities of San Luis Obispo, Morro Bay and 19 Monterey Bay area communities have already joined MBCP. As a result, these cities and counties exercise more local control over energy-related decisions through MBCP's publicly appointed Community Advisory Council, Operations Board and Policy Board. By joining MBCP, communities in San Luis Obispo County would have more discretion over how their ratepayer dollars are invested, including lower rates and/ or local energy programs. The cities of Arroyo Grande, Atascadero, Grover Beach, Paso Robles, Pismo Beach and the County of San Luis Obispo can unite with the cities of San Luis Obispo and Morro Bay to create a united central coast where everyone has a choice. Preliminary Total Customer Savings for San Luis Obispo County with MBCP San Luis Obispo San Luis Paso Morro Grover Arroyo SECTOR County (Uninc.) Obispo (City) Pismo Beach Robles Bay Beach Atascadera Grande Residential $510,981 $154,995 $46,638 5160,213 $45,510 $28,030 $1fl1,077 $60,532 Customers* Commercial $887,054 $404,628 $80,962 $278,128 $60,166 $48,660 $175,468 $105,083 Custorriers°°" Total*" $1,398,035 $559,622 $127,600 5438,342 $105,676 $76,689 $276,544 $165,616 'Estimation 1s ha 6cd on 2015 5 L RFP for ulocirimty co n sur, ipt ion and MBCP'5 3% rebate appliod In n vrci9hred residential elrc tric 9rncrati on rata as tit February 2019. "E s nikiation is has ed on 2010 SLO RFP for electricity consumption and MBCP's 3% rebate applied to a Weighted commercial electric general ion rate as of February 2019. Commercial customers mclude public, municipal, coni n ier ci a 1, agricultural and any other non -re Sid Fetal Cos t0m0r5. "•Estimation rs based on 95%enrO111 nent in MBCP e. IPC tr it service and this figure Orin ina tied Irom City o San Luis Obi spu RFP for CCE 5urvice6, 0 Minimize Financial Risk & Maximize Efficiencies Savings delivered to 270,000 Economies of scale create efficiency and cost-effective 54.4 MM customers in Monterey, Santa administration. Communities can minimize redundancy and capitalize Cruz and San Benito Counties on collective investments in local energy projects, long-term power Dedicated to local energy contracts, human resources, and community outreach. $4.5 MM programs each year and this continues to grow, Minimize start-up costs. Currently, there is minimal cost to join MBCP. New renewable energy projects Creating a new local program would require significant capital for 215 MWs powering more than se MBCP's customer base start-up financing and could take ears to begin providing service at P g Y 9 p 9 comparable rates. As more communities collectively join at the same In local contracts awarded by $450k MBCP to support the local time, start-up costs can be shared or reduced. economy MBCP's long-term renewable and carbon -free energy contracts at Funding for EV charging stations $6MM via the CA Electric Vehicle low wholesale prices. MBCP's energy procurement practices provide Infrastructure Project (CALL -VIP) communities with protection against future market fluctuations. MBCP has significant operating reserves over $56 million as of December 31, 2018, which ran help with future energy market fluctuations, rate competitiveness and financing. MBCP will be able to fund local investments faster and and estimates reaching its reserve target of 50% of operating expenses in less than two years. 0 Energy Programs MBCP launched its Electric Vehicle incentive program, an approximately $725,000 investment, to support income -qualifying customers and public agencies. MBCP partnered with Grid Alternatives, a nonprofit organization that brings solar technology to communities that would not otherwise have access, to support income -qualified homeowners via its "Project Sunshine" program. 0 Process to Join MBCP #1 Study session. An opportunity for a city or county jurisdiction to convene a council meeting or workshop for the community to learn more about MBCP. #2 Introduce resolution and first reading of ordinance An opportunity for the jurisdiction to formally adopt a resolution to join MBCP and introduce an ordinance to approve MBCP's Joint Powers Authority agreement. #3 Second reading of ordinance. A second reading of the ordinance is necessary to formalize the jurisdiction's approval of joining MBCP. #4 Agreement on board representation. An opportunity for the jurisdiction to decide whether their board representation is consistent with MBCP's board structure for the Community Advisory Council, Operations Board and Policy Board. #5 Request of load data. MBCP requests PG&E load MBCP will create an innovative electrification strategic plan to unlock the economic and environmental benefits of an electrified Central Coast through transportation electrification, building electrification and distributed energy resources. MBCP is developing a cutting-edge micro -grid program to provide greater access to electricity due to grid constraints while supporting economic opportunities. data for the jurisdiction to analyze the associated cost of including that jurisdiction's PG&E customers. #6 Approval of new communities by MBCP Policy Board. MBCP introduces the inclusion of the jurisdiction to the MBCP Community Advisory Council, followed by the MBCP Operations Board for recommendation to the MBCP Policy Board to final approval. #7 Amended implementation plan and Joint Powers Authority agreement. With the approval of the MBCP Policy Board, MBCP submits an amended implementation plan and Joint Powers Authority agreement to the California Public Utilities Commission for certification. Certification normally takes 90 days. #8 Customer enrollment. If all steps are completed by December 2019, MBCP will be able to serve the remaining communities in San Luis Obispo County by early 2021. MBCP CUSTOMER SUPPORT info@mbcommunitypower.org 1-888-909-MBCP (6227) Monterey Bay Community Power 70 Garden Court, Suite 300, Monterey, CA 93940 Monterey Bay Community Power www. tri bco m m u n i typowe r. org Monterey Bay Community Power Frequently Asked Questions (FAQ) Overview What is MBCP? Monterey Bay Community Power is a locally -controlled public agency providing carbon -free electricity to residents and businesses in Monterey, San Benito and Santa Cruz Counties as well as the Cities of San Luis Obispo and Morro Bay starting in 2020. MBCP is based on the local energy model called community choice energy that partners with the local utility {in our case PG&E} which continues to provide consolidated billing, power transmission and distribution, customer service and grid maintenance services. PG&E accounts within MBCP's tri -county service area will be automatically enrolled in MBCP's default electric program, unless they choose to opt -out and return to PG&E bundled service at any time. MBCP will match PG&E's electric generation rates, inclusive of any exit fees, and will pay each account holder a minimum 3% rebate currently and MBCP will increase that rebate to 3.7% in 2019. How does MBCP work with PG&E? Monterey Bay Community Power works in partnership with PG&E. MBCP assumes responsibility for electric power procurement and purchases clean, carbon -free electricity for homes and businesses in the tri -county area. However, PG&E continues to provide customer billing, receives payments, performs power line maintenance, resolves outages and remains responsible for all gas services. Customers can call either MBCP or PG&E for billing questions. How did Community Choice Aggregation start? 1n response to the effects of energy deregulation in 1997 and the energy crisis that followed in 2000-2001, Assembly Bill 117 was passed by the CA Legislature in 2002 to establish Community Choice Aggregation {CCA} also Known as Community Choice Energy (CCE). CCE is a new way for California communities to provide local residents and businesses with a choice of electric providers and sources of electricity. The CCE model enables communities to purchase their own electricity and divert excess revenues to local community investment, rather than to shareholders of investor-owned utilities. There are currently eighteen operational CCEs throughout the state, with many more communities forming their programs. Existing CCEs include: Silicon Valley Clean Energy, serving Santa Clara County; MCE Clean Energy, serving 4"—Q Monterey Bay Community Power www, m boom m u n itypowe r. o rg Marin, Napa and parts of Contra Costa and Solano County; Sonoma Clean Power, serving Sonoma and Mendocino counties; Lancaster Choice Energy, serving the City of Lancaster; Clea nPowe rSF, serving the city and county of San Francisco; Peninsula Clean Energy, serving San Mateo County; Redwood Coast Energy Authority, serving Humboldt County; and Apple Valley Choice Energy, serving the Town of Apple Valley. How is MBCP financed? Monterey Bay Community Power is financed by revenues received from our ratepayers based on the electricity they consume. MBCP is self-funded through existing ratepayer revenues and do not use any tax dollars. As a community agency, any revenues that exceed our costs will be used to cover wholesale energy prices, administrative costs, customer rebates and to benefit the communities we serve through energy programs. Does MBCP have any debt? MBCP has successfully paid off a loan obtained through Lines of Credit totaling $6.2 million, as well as reimbursed the County of Santa Cruz for expenses incurred on behalf of MBCP prior to securing the lines of credit. Governance How is MBCP governed? Monterey Bay Community Power is a joint powers authority, governed by a Policy Board and an Operations Board, each of which includes twelve members. All board members are local elected officials or local government administrators who serve on the board as part of their duties representing their MBCP-member city or county. All board meetings are open to the public, with agendas posted in advance per the Brown Act. Board meeting agendas can be found on our website. MBCP also has a Community Advisory Council which advises and supports the direction of MBCP's energy programs. Do the cities and counties that make up the Monterey Bay Community Power Authority have any financial risk or obligation for their participation in Monterey Bay Community Power? No. Monterey Bay Community Power is a Joint Powers Authority (JPA) that functions as a stand- alone public agency. The debts and liabilities of the JPA do not extend to the member cities and counties. This legal firewall is protected by state law. Monterey Bay Community Power www. m bco m mu n ityp awe r. o rg Is MBCP regulated by the CPUC? MBCP's energy procurement is regulated by the CPUC like any other electric utility, MBCP rates are set by the board and are not regulated by the CPUC which allows for greater control, savings and local re -investment. Billing and Rates Why do customers have toopt-out instead of opt -in? California's CCA (Community Choice Aggregation, otherwise known as Community Choice Energy) law requires Monterey Bay Community Power to become the default provider of electric generation for customers within our service area, allowing customers to opt -out and return to PG&E bundled service at any time. If customers opt out after the 60 day enrollment period, they are obligated to stay with PG&E bundled service for the next 12 months. How are the customers impacted on the billing side? The cost of electricity generation will be lower to account for PG&E exit fees (aka Power Charge Indifference Adjustment) associated with the change in service. The net result is that electric generation costs will match PG&E's. You will see MBCP's generation charge as a new line item that replaces the same charge from PG&E, as well as the PCIA fee which is absorbed in MBCP's lower generation cost. Customers will see a new page on their PG&E and the MBCP generation charge replaces the PG&E generation charge. Customers will see a generation credit on the Delivery page of the bill. Are there any additional fees associated with Monterey Bay Community Power Service? No. PG&E charges Monterey Bay Community Power customers a Power Charge Indifference Adjustment (PCIA). This charge is factored into MBCP's rate setting process so that in total, customers still pay the same as they would under PG&E's generation rates without the fees — zero net increase. Will discount programs like CARE/FERA/Medical Baseline/LIHEAP continue? Yes. CARE, FERA, HEAP and Medical Baseline is available to Monterey Bay Community Power customers, as well as PG&E customers, and provides the same discount regardless of Monterey Bay Community Power www. m bcom m u n itypower. o rg enrollment with Monterey Bay Community Power or PG&E. Customers enrolled in Monterey Bay Community Power continue to receive their CARE, FERA, HEAP and Medical Baseline discount within their PG&E delivery charges; there is no need to reapply with Monterey Bay Community Power. New CARE, FERA and Medical Baseline enrollments or renewals must still be done through PG&E's customer service center or website. Any PG&E employee still receives their transmission and distribution discount regardless of electric service provider (ESP). Am I still eligible for PG&E programs and rebates? Yes, MRCP customers remain eligible for PG&E rebate programs. What is MBCP's standard offering and how do I sign? MBchoice is Monterey Bay Community Power's standard electricity offering, available automatically to all customers at the time of enrollment. In addition to being carbon -free, MBchoice is classified as 30% renewable, exceeding State requirements. MBCP will provide a minimum 3% rebate for MBchoice customers, to be paid each December for residential customers and either quarterly or biannually for commercial and agricultural customers. You can also select to participate in MBprime, MBCP's 100% renewable energy electric service option or reallocate your rebate towards MBgreen+ or MBshare. MBgreenf and MBshare provide the same generation service with stronger benefits for the environment and community, automatically funded through the allocation of your rebate and at no cost premium to the customer. No action is needed to be enrolled in MBchoice and keep the customer rebate. As an MBCP customer, will service reliability -be affected? No, reliability will not be affected. MBCP provides electric generation services, but responsibility for power transmission, distribution, billing and service reliability remains with PG&E. PG&E continues to maintain the power distribution network and repair any outages. PG&E is legally obligated to treat all customers fairly in terms of their transmission and distribution network regardless of who the customer receives electric generation service from. Net -Energy -Metering {NEM} Customers Does Monterey Bay Community Power offer a net energy metering NEM program? Monterey Bay Community Power www.mbcommu nitypower.org Yes. Existing NEM customers will be enrolled in MBCP's Net Energy Metering program for their power generation charges. The program will operate by the same principles as PG&E's NEM program, which remains in effect for the delivery charges and other bill components. When will NEM customers be enrolled with MRCP? Since PG&E requires NEM customers to true -up before they enroll with a community choice energy provider, MBCP will automatically place NEM customers in one of four NEM enrollment months closest to their normal true -up date, in order to minimize any potential disruption to the customer's expected NEM value. July 2018 will be the first NEM enrollment month, followed by October 2018, January 2019, and April 2019. If you have any questions or concerns about automatic enrollment, please contact us at 888-909-6227. Will l keep my NEM 1.0 Grandfathered Status? Yes. A customer transitioning to service with MBCP will remain grandfathered on the original NEM design if they were on it before switching to MBCP. What will happen with my PG&E NEM credits if I enroll with Monterey Bay Communit Power? When you become an MBCP customer, you will true -up with PG&E. To minimize any potential lost credits, MBCP has four NEM enrollment months and will automatically place NEM customers in the month closest to their normal true -up date. The first NEM enrollment month is in July. If you have any questions or concerns about automatic enrollment, please contact us at 888-909-6227. Will MBCP's rates be the same or better than PG&E's for solar customers? Monterey Bay Community Power solar customers will save money compared to PG&E solar customers. if you are a net consumer of electricity, you will receive a rebate on your electric generation charges from MBCP, set at 3% for 2018. If you are an annual net generator of electricity, MBCP will compensate you at a significantly higher rate than PG&E. MBCP is also adding more consistency to the NSC rate equation by committing to an annual rate. PG&E changes their NSC rate monthly, and as of Feb 2018, customers were paid $.02793 for each kWh of surplus energy. MBCP is more than doubling that rate to $.06135 which is locked in for the year. Monterey Bay Community Power www. m bcom m u n itypowe r.o rg Does Monterey Bay Community Power have an annual true -up like PG&E? Yes. With Monterey Bay Community Power, customers will continue to have an annual true -up for both MBCP and PG&E charges. The true -up date will be the anniversary of their enrollment with MBCP, instead of the anniversary of their system interconnection, MBCP automatically enrolls solar customers close to their original true -up date in order to minimize disruption to customers. Energy Procurement Where does MBCP procure energy from? MBCP's energy is procured from carbon -free sources such as solar, wind, biomass and hydroelectric power. The projects that produce our electricity are located in California, and on the western grid. The exact proportion of each varies with time, based on demand and availability. MBCP will have short- and long-term contracts with a variety of power suppliers to meet the energy needs of our community; however, most of MBCP's long-term power contracts will be from CA sources. Monterey Bay Community Power will provide detailed information about its power supply resources in its annual Power Source Disclosure statement. CCEs negotiate the purchase of electricity on the open market by entering into power purchase agreements with energy providers. All energy that is generated is identified by certificates that guarantee the type of energy and location of production. CCEs must also enter into a contract with PG&E to transmit the electricity that the CCE buys over PG&E's transmission lines. What would MBCP's role be around PG&E's Public Safety Project Shutdown where PG&E cuts power to areas vulnerable to wildfire, heat and wind? Currently, MBCP has outlined a few positions supportive of the following key initiatives: undergrounding distribution wires and decoupling PG&E from the generation business so they can focus on safety and resiliency of their transmission and distribution system. MBCP is also developing a microgrid model where key customers can unlock economic opportunities through faster and more resilient electric generation and infrastructure. Why can MBCP get better wholesale pricing than PG&E? Some may say that CCAs have an unfair advantage over PG&E, given PG&E's higher cost structure, from their existing fixed costs of owned -generating assets along with legacy, higher - priced, power purchases agreements. The table above dispels this line of reasoning. MBCP is governed by its Board of Directors, mostly elected, and representing their constituents, MBCP's Monterey Bay Community Power www. m bcom m u n itypowe r. o rg customers. This is identical to how municipal utilities are governed. PG&E, as an investor- owned -utility (IOU), is a private company with oversight by the California Public Utility Commission. PG&E puts their shareholders ahead of their customers, and the table below confirms that. utility 2017 Average Rate (cents/kWh} PG&E's rate is this much higher than MUni's hate, as a % =G&= 2 0. 06 City of Santa Clara 11.68 72l� Citv o7 Palo AI?o 13.29 51?0 Citv of Alarneda 16.93 18% Ci?y & County of San Francisco 11-53 74% ,All California MUnk.lpal Utilities 16_02 2510 2017 Urile£y Hue, dled RetodSales- To zoo (DODO front fort -ns ELA-861- SChed4:rles -1A & 4D art! V.A-8615) What are MBCP's energy contract terms? How many short term contracts versus long term? According to our Board -approved Energy Risk Management Policy, MBCP is following industry standard procurement strategies where we have a blend of short & long-term fixed price contracts and will be layering in long-term agreements over time. MBCP executed 3 long-term renewable power purchase agreements in 2018, representing about 20% of our customer load, which will lead to the building of 3 new renewable projects. In fact, one of them, once built will be the largest Solar plus Storage project in California. Does MBCP buy energy in the spot market and how much? It is not possible to forecast our customer load/consumption correctly 100% of the time, due primarily to weather uncertainty along with changing and uncertain consumption patterns. Therefore, MBCP does buy energy in the spot market, as do all load serving entities, to cover this load forecasting error and in compliance with our hedging tolerance bands reflected in our Board -approved Energy Risk Management Policy. How has the PG&E bankruptcy impacted MBCP? PG&E's bankruptcy deals strictly with restructuring the organization as well as the financial liability of the recent wildfires. The judge presiding over the case has ruled that MBCP revenues are not liable and are viewed as pass through costs. What is the risk of joining MBCP? Monterey Bay Community Power www.m bco m m u n itypower.o rg There are regulatory and legislative risks as well as market conditions but those risks also remain with the incumbent investor owner utility. The legislators may be tempted again to bring Direct Access to all consumers, risking the possibility of the return of the energy crisis of 2001. Is MBCP part of CalPERS? No. MBCP is part of PARS and doesn't not have any pension liability. Has MBCP been sued? No. How much will it cost to join? Currently, the cost would be between $5000 to $7500 for each jurisdiction to support the amendment of implementation plan and joint powers authority agreement. This dwarfs the cost of setting up a CCA which generally ranges from $3 to $5 million. This is a small financial cost to be returned significantly in the first year of service not only for the municipal accounts associated with the jurisdictions but for the entire community of customers. Myth: Vapes produce a harmless water vapor. Reality: Vapes produce an aerosol that has nicotine and toxins known to cause cancer. These toxic chemicals include things like benzene, lead, and nickel, some of the same chemicals found in tobacco products. The chemical diacetyl, found in many vape flavors, is linked to serious lung disease.' Myth: Vapes are safe. Reality: Vapes are NOT a risk-free product. They contain nicotine and low levels of toxins and chemicals. Vapes are especially dangerous for teens, whose brains are still developing. Teens who vape are at risk for nicotine addiction, mood disorders, difficulty paying attention, reduced impulse control, and learning problems.' Myth: Vaping isn't addictive. Reality: Nicotine is a highly addictive drug. Nicotine is one of the main ingredients in most vape e -liquids.' Myth: Vapes can help people quit tobacco. Reality: Vapes are not approved by the FDA to help people quit tobacco. Some people switch from cigarettes to vapes. But switching isn't quitting. In fact, vape use among youth and young adults is strongly linked to the use of other tobacco products, such as traditional cigarettes, cigars, and smokeless tobacco.' Myth: Big Tobacco doesn't make vape products. Reality: All major tobacco companies now make vapes. By 2020 the vape market is expected to reach $15 billion.' Sources: I. U.S. Department of Health and Human Services. in partnership with the Office of the U.S. Surgeon General and the U.S. Centers For Disease Control and Prevention, office on Smoking and Health. Know the Risks: E -cigarettes & Young People. 2018. https:// e-cigarettes.surgeongenera I. gov/knowtherisks-html [Accessed 8/20181 2. California Department of Public Health. Flavors Hook Kids. 2018. www.f lavorsh ook k i ds. org [Accessed 8/20181 Note: The term ,Vapes" is used here to refer to a range of electronic smoking devices including e -cigarettes, e -hookahs, vape pens, electronic nicotine delivery systems CENDS), and mods. © Revised 2018- California c Department of Public Health, QUIT TODAY: 1 -800 -NO -BUTTS (1-800-662-8887) funded under contract #1616004www.t ol) VISIT WWWADBUTTS.ORG. J941 10/18 COUNTY OF SAN LUIS OBISPO HEALTH AGENCY PUBLIC HEALTH DEPARTMENT INGER APPANAITIS, MPH PROGRAM MANAGER • 2180 Johnson Ave. San Luis Obispo, CA 93401 tpf 805-781-4305 1 ({] 805-781-1235 iappana itisgco.slo.ca. u s --siacounty.ca.gov 6 things to know about the most common tobacco product used among youth E -cigarettes come in many shapes and sizes. Pk a • a • a Eqw Et �:"'-rw HYMN. Dn.nc�SM 'V� wkGmq riLlwaw .��. reyuq, �s (Not limited to what is depicted) Many are small, sleek, and easy to conceal. It's just water vapor, right? WRONG! The brain is still developing till 25. The nicotine in e -cigarettes can prime the adolescent brain for addiction. 49% of 11 th grade students in Atascadero perceive the ability to obtain an e -cigarette very easy. E -cigarette use is on the rise? Atascadero Youth E -cigarette Use 116% Increase among 11th grade students 1❑% 2016-2015 2017-2018 The Truth About Flavored Tobacco The use of flavored tobacco products such as cigars, cigarillos, smokeless tobacco, hookah tobacco, and e -liquids (used in e -cigarettes) has increased in recent years.' These products use enticing flavors, colorful packaging and lower prices to hoop a new generation of tobacco users. Enticing Fruit and Candy Flavors Sweet flavors like watermelon, cherry, chocolate, mint, and gummy bear appeal to kids and teens.' Flavorings mask the harsh taste of tobacco which make it easier for youth to initiate tobacco use.' Marketed to Young People Flavored tobacco products often use the same flavoring chemicals as popular brands like Jolly Rancher, Kool-Aid, and Life Savers.' Little cigars are often sold in small packages for less than a dollar and promoted as a low-cost alternative to cigarettes.".5 Colorful packaging and placement near the register makes them highly visible and attractive to kids.' ncen ZEN 5MOKELESS TOBACCO • Growing Teen Use • A majority of youth report flavoring as a leading reason for using tobacco products.' This includes: 82% of e -cigarette users 79°/n of hookah users 74°/° of cigar users fig°�o of smokeless users of • ■ people 80% • have everr tobacco started with a flavored tobacco product.6 • • �i i ■ • z -r • r l L r 7 out of 10 teens who use tobacco have used a flavored product in the past 30 • � days' • • Long term addiction .................. • • The U.S. Surgeon General has warned that flavored tobacco products help new users establish habits that can lead to long-term addiction.' Flavors like menthol in tobacco products make it harder for users to quit.8 I - I 1j, ................. 04 Smokers who start at a younger age, are more likely to develop a severe nicotine addiction! 0a6aaaaaa&0&&*&&a0s*a*&a00a40 Serious health risks All nicotine products are addictive and increase the risk of developing serious health problems.' The chemical Diacetyl, found in 75% of flavored e -liquids, is linked to bronchiolitis obliterans ("popcorn lung") which causes irreversible lung damage10'11 j 10 Cancer Heart Disease Emphysema Protecting _ i Communities The FDA has banned the sale of flavored cigarettes (other than menthol) because they appeal to youth. But flavored e -cigarettes, e -liquid, cigars, hookah, and chewing N_� i tobacco continue to be sold. Prohibiting the sale of all flavored tobacco products is a critical step to preventing CDPD 1 another generation of young people from living with a lifetime of addiction. PublicHealth References 7. Corey, C.G., at al., Flavored loba=o product use among middle and high school students—United Stales, 2014. lAMW R Morbility and Mortality Weekly Report. 2015.64(38): p. 1056-1070. 2. King, 6.A., S.R. Dube, and M, A- Tynan, Flavored cigar smoking among US adults: findings from the 2009-2010 National Adult Tobacco Survey. Nicotine & Tobacco Research, 2013. 15(2): p.608-814. 3. Brown, J. E.. ataI., Candy Flavorings in tobacco, New England Journal of Medicine, 2014. 370(23): p. 2250-2252. 4, Oregon Public Health Division. Flavored Tobacco: SWeef, Cheap, and Within Kids' Reach, in CD Summary. 2014, Oregon Health Authority: Oregon. 5. 0elnevo, C. D. and M. Hrywna. "A whole 'nother smoke" or a cigarette in disguise: How RJ Reynolds reframed the image of lilllecigars, American Journal of Public Health, 2007. 97[8]: P. 1358. 6. Ambrose, 0,K., et al„ Flavored Tobacco Product Use Among US Youth Aged 12-17 Years, 2013-2014, JAMA, 2015: p. 1-3. 7. U.S, Department of Health and Human Services, Preventing tobacco use among youth and young adults: a report of the Surgeon General. Atlanta. GA: US Department of Heallh and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Off c on Smoking and Health, 2 012 . 3 8. Delnevo, C_ D_. at al., Smoking -cessation prevalence among US smokers of menthol versus non -menthol cigarefles. American Journal of Preventive Medicine, 2011. 41(4): p. 357.365. 9. U.S. Food and Drug Administration, Flavored Tobacco Product Facl Sheet. 2011, U.S. Food and Drug Administration. 10.Joseph G. Allen, at al., Flavoring Chemicals in E.Cigarettes: Diacelyl, 2,3-Penlanedlone, and Acelom in a Sample of 51 Products, Including Fruit-, Candy-, and Cocktail -Flavored E -Cigarettes. EnvlronmenW Heallh Perspectives, 2015, 11.Farsalinos, K, E,, at al., Evaluation of electronic cigarette liquids and aerosol for the presence of selected inhalation loxias. Nicotine & Tobacco Research, 2015. 17(2): p, 166-174. 02017 California Department of Public Health. 01/18