Renewable Portfolio Standard Updates

Glendale Water & Power Commission

June 7, 2021

• California’s Renewable Portfolio Standard Program Was Established in 2002 and Based on Percentage of Electricity Retail Sales Served By Renewable Resources

• California Energy Commission is Responsible For the Certification of Eligible Renewable Energy Resources and Adopting Enforcement Regulations

SB1078 (2002): 20% By 2017

SB350 (2015): 50% By 2030; Interim 3-Year Target Compliance Periods; 65% of RPS Procurement Derived from Long-Term Contracts of 10 or More Years

SB100 (2018): 60% By 2030; 100% Carbon-Free Resources By 2045

Renewable Portfolio Standard and Clean Energy Overview

21

svcleanenergy.org

RPS Compliance Periods

32

City of GlendalePower Content and RPS Compliance

43

CP3 Compliance Reports Due by July 1, 2021

2020* - Estimated Power Content Label

2030, 60.00%

2045, 100.00%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

20

31

20

32

20

33

20

34

20

35

20

36

20

37

20

38

20

39

20

40

20

41

20

42

20

43

20

44

20

45

% R

enew

able

Current RPS Position (with Scholl LFG)

GWP Renewables Scholl LFG (Planned) ZeroCarb CA Renewable Target CA Zero Carbon Target

Renewable and Clean Resources

54

• Value of Layered Long-Term Agreement

• Room for Changing Prices and Technologies

• Scholl Canyon Project Contribution

1. Meet Compliance Period Soft Targets

2. Meet Integrated Resource Plan (IRP) Goals

3. Enter Into Long-Term Renewable and Clean Energy Agreements– Executed Projects

– Future Projects (Type of Resource)

4. Manage Excess RECs

5. Utilize PowerSimm Modeling Tool

6. Continual Portfolio Analysis and Studies

7. Virtual Power Plant

Mitigation and Compliance Strategy

65

• Regulatory Changes and Maintaining Culture of Compliance

• Excess Procurement Unused• Substitute Energy Uncertainty• Transmission Limitations/Lack of• Retail Load Uncertainty• Over/Under Renewable/Clean Energy Procurement

(Cost/Penalties)– $50 Per Out of Compliance REC; $250K Penalty For 5000 MWh Shortfall

• Clean Energy Programs Intermittency • Scholl Canyon Renewable Project Completion Rate

Risks and Concerns

76

87

100% Clean by 2030 Study

60% 59%72% 72% 80% 80% 86% 87% 89%

0%

25%

50%

75%

100%

125%

150%

2022 2023 2024 2025 2026 2027 2028 2029 2030

Perc

enta

ge o

f R

etai

l Lo

ad

Clean Energy Serving Load

Clean Energy Sales

Clean Energy Curtailment

Full Retail Load

GWP can plausibly reach 89% clean energy around-the-

clock by 2030 with some big investments

Curtailments and sales increase substantially as more renewables come online

Over one-third of clean energy generation is curtailed or sold in 2030

98

Portfolio Changes

-250

-200

-150

-100

-50

0

50

100

150

2022 2023 2024 2025 2026 2027 2028 2029 2030

Nam

ep

late

Cap

acit

y C

han

ge (

MW

)

Geothermal**

Wind**TeslaBattery

Future Solar*

RICEUnits*

IPP Coal

IPP Natural Gas

Solar**

Battery**

Wind**

Grayson Units 1-8

Highwinds & Pebble Springs

Pleasant Valley

Sunrun*

Scholl*

* Indicates projects under negotiation** Indicates hypothetical projects

Clean energy model relied on aggressive assumptions• Continuation of the Clean Energy RFP acquisitions

• Commercial roof-top solar and storage

• Additional geothermal, wind and hybrid solar resources outside of Glendale

109

Clean Energy Beyond 2030• Technological change is likely going to play a significant

role in the path to 100%

• Potential future resources beneficial to GWP include – Renewable natural gas

• Carbon neutral fuels to replace natural gas

• Still in development

– Green Hydrogen• Hydrogen production from renewable sources for use in natural gas plants

• Currently planned for IPP starting in 2025 (30% Hydrogen mixed with 70% Natural Gas)

• Hydrogen would account for 10% of energy generation from IPP

• Ratio would increase over time to reach 100% Hydrogen by 2045

– Long duration storage• Energy storage with duration measured in days

• Pilot project are planned for projects with 200 hours of storage duration