What does it mean to be an SVCE customer ?
“ In April 2017 , we introduced clean energy services to Morgan Hill , Gilroy , and San Martin , as well as other communities in the northern part of the county . Depending on their choice of service , customers were automatically enrolled in either GreenStart ( 50 % renewable and 100 % carbon-free electricity ) or GreenPrime ( 100 % renewable and 100 % carbonfree electricity ), or they could opt-out ( return to PG & E ).
“ We stepped up to provide carbon-free and renewable sources of electricity priced competitively with what customers were paying PG & E . PG & E still provides gas , and it still manages energy transmission , distribution , and customer billing .
“ In just one year , our customers ’ choices are making a positive impact .”
Case Studies
Girish Balachandran Chief Executive Officer Silicon Valley Clean Energy ( SVCE )
According to Anthony Eulo , Program Administrator for the City of Morgan Hill , after switching to GreenPrime , the City reduced its overall carbon footprint by an estimated 43 percent — as compared to previous years using PG & E procured power .
The Gilroy Unified School District reported that since becoming a GreenStart customer , the school district saved $ 4,000 –$ 5,000 ( across 30 meters ) in 2017 . Based on SVCE ’ s new pricing as of April 1 , 2018 , the district expects to save approximately $ 43,000 . s to see an annual savings of $ 43,000 .
How are you doing with customer enrollment ?
“ Our customer enrollment stands at 96.8 percent . The opt-out rate is just over 3 percent . To date , one percent of accounts upgraded to GreenPrime . Notably , 11 of our 13 member-agencies have upgraded their municipal accounts and the other two have plans to upgrade as well .”
Who are the power suppliers and where are the power generation facilities ?
“ Suppliers include : 3 Phases Renewables , Energy America , Exelon Generation Company , Morgan Stanley Capital Group , Powerex Energy Corp ., Shell Energy North America , Regenerate Power , and NRG Power Marketing .
“ We currently buy carbon-free and renewable power from qualified energy generators in California , Washington , British Columbia , and Idaho . Sources include hydro , wind , solar , biomass , geothermal , and landfill gas . A large percentage of the carbon-free electricity is generated by hydroelectric projects and dams .”
What is SVCE ’ s mission and measure of success going forward ?
“ Our continued mission is to reduce dependence on fossil fuels by providing carbon-free , affordable and reliable energy and innovative programs to our community .
“ We ’ ve achieved our first-year goals in terms of power supply , customer enrollment , financials and community outreach . Our efforts have been focused on decarbonization , grid innovation , and acquiring Resource Adequacy Capacity .
“ We measure success by our ability to bend the carbon curve , remain price competitive , and build fiscal strength while mitigating regulatory and legislative risk .
“ Now we are beginning to work with our communities on programs for energy efficiency , fuel switching , and energy demand management . We ’ ll bring these to the Board of Directors in September , along with a roadmap for implementation .”
Tell us about your financial report card .
“ SVCE repaid all $ 2.7 million in startup loans from participating cities , two years ahead of schedule , and is now operating debt-free . We were able to accomplish this by being very conservative and because we were able to complete customer enrollment in two phases rather than three , so we realized revenues early .
“ The agency reported over $ 86 million in operating revenue . Among its operating expenses , electricity purchases were roughly $ 70 million . SVCE also put $ 26 million into reserves .”
“ The solar industry is changing a lot . Products like thin film solar and integrated solar roofs are better and more affordable so the return on investment comes sooner , in three to five years now , not ten .”
— Pam Garcia , SVCE Customer Program Advisory Group member
GILROY • MORGAN HILL • SAN MARTIN JUNE / JULY 2018 gmhtoday . com
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