REPORT TO COUNCIL
SUBJECT
Title
Note and File the Report on the Silicon Valley Power (SVP) 2024 Power Content Label (PCL), Designed to Provide SVP Customers With Information Regarding the Sources of Energy Used to Provide Them Electric Services
Report
BACKGROUND
The Power Source Disclosure Program (PSD Program) was established by Senate Bill (SB) 1305 (Stats. 1997, ch. 796) in an effort to provide retail electricity consumers “accurate, reliable, and simple to understand information on the sources of energy that are used to provide electric services.” AB 1110 (Stats. 2016, ch. 656) made significant updates to the PSD Program and the Power Content Label. It requires electricity retail suppliers to disclose the greenhouse gas (GHG) emissions intensity (i.e., the rate of emissions per unit of electricity) associated with their energy portfolios beginning with the 2020 reporting year. AB 1110 also required the California Energy Commission (CEC) to develop a reporting format for disclosing unbundled California eligible renewable energy credits (RECs) as a percentage of annual retail sales to be shown as an offset., not as delivered renewable power. The format which the CEC developed is called the Power Content Label (PCL). As an electricity retail supplier, Santa Clara’s Electric Department, Silicon Valley Power (SVP), is required to input this information into the PCL.
AB 1110 also requires electricity retail suppliers, like the City, to disclose to customers the types of resources used to generate the electricity they purchase. This information is also reported in the PCL. SVP’s Power Source Disclosure Report, which is audited by a third-party and submitted to the CEC, provides the data used to create the PCL. Prior to October 1st of each year, SVP is required to notify customers about the availability of the PCL and provide a link to SVP’s website where the PCL is posted.
DISCUSSION
The 2024 SVP PCL (Attachment A) has been submitted to the CEC and contains the following information:
• The City’s residential load was served completely by renewable resources.
• 49% of the non-residential load was served from eligible renewable resources and zero carbon hydroelectric resources.
• SVP’s 2024 Overall Power Mix is 52% clean, which includes renewable resources and large hydroelectric generation (capacity sized over 30-MW).
Information reported in the PCL includes SVP’s operating data for City-owned power plants, Northern California Power Agency (NCPA) power plants, and resources procured through power purchase agreements. For other specific energy resources, SVP uses information from invoices and Renewable Energy Credits (RECs) that are accounted for in SVP's account with the Western Renewable Energy Generation Information System (WREGIS). The Power Source Disclosure Regulations require SVP to identify resources as "unspecified power" in the event a specific generation source (i.e. wind, solar, geothermal, hydro, coal, natural gas, etc.) cannot be identified.
SVP’s Power Source Disclosure Report was audited by Lakeshore Global, a firm that specializes in compliance reporting for the global clean energy market.
Figure 1: 2023 and 2024 Percentage of Retail Sales by Resource
|
|
2023 |
2024 |
|
Resources |
Procurement (MWh) |
Percentage of Retail Sales |
Procurement (MWh) |
Percentage of Retail Sales |
|
Biomass & Biowaste* |
70,865 |
1.6% |
65,439 |
1.4% |
|
Geothermal* |
199,141 |
4.5% |
244,173 |
5.2% |
|
Eligible hydroelectric* |
567,682 |
12.7% |
549,176 |
11.7% |
|
Solar* |
149,432 |
3.3% |
206,921 |
4.4% |
|
Wind* |
336,654 |
7.5% |
444,500 |
9.5% |
|
Large hydroelectric |
1,152,666 |
25.8% |
926,430 |
19.9% |
|
Nuclear |
0 |
0.0% |
0 |
0.0% |
|
Natural gas |
1,180,652 |
26.4% |
1,095,032 |
23.4% |
|
Coal & Petroleum |
0 |
0.0% |
0 |
0.0% |
|
Unspecified Power |
806,865 |
18.1% |
1,150,786 |
24.6% |
|
Total Retail Sales |
4,463,597 MWh |
4,682,457 MWh |
*Eligible renewable resources
Renewable energy generation (biomass, geothermal, eligible hydroelectric, solar and wind) increased from 29.6% in 2023 to 32.2% in 2024 in SVP’s overall power mix. The percentage of large hydroelectric decreased from 25.8% in 2023 to 19.9% in 2024. Natural gas-based resources decreased from 26.4% in 2023 to 23.4% in 2024. SVP’s retail sales increased by 5% between 2023 and 2024. SVP’s unspecified source of power increased from 18.1% in 2023 to 24.6% in 2024. This was caused by two things, namely the increase in retail sales and the lower energy price in the wholesale market.
A notice of PCL availability and link to the SVP website was included in customers’ electric utility bills and posted on the Silicon Valley Power website in October 2025. The PCL will be used in other publications and marketing materials as needed.
Upcoming Years
SVP is heavily engaged in clean energy procurement. These resources are in various stages of development, and negotiations are estimated to achieve commercial operation over the next several years. Additional opportunities are continuously identified by SVP, but not all negotiations will lead to final agreements. In some cases, even when a power purchase agreement is successfully negotiated, a project may fail to achieve commercial operation.
In 2024, the City secured two power purchase agreements. The first was Cimarron Wind, a 300-MW wind project expected to begin operation in 2026. The second was an NCPA project called Grace Solar, a 50-MW solar project expected to be online in 2027. SVP holds a 10-MW share of this project. The total forecasted generation is 1,027,890-MWh annually, which is approximately 22% of the 2024 total retail sales. Cimarron is currently testing its interconnection deliverability and is on track for the 2026 delivery.
ENVIRONMENTAL REVIEW
This item does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15060(c)(1) of Title 14 of the California Code of Regulations as this item is solely for informational purposes and therefore does not involve the exercise of the City’s discretionary power.
FISCAL IMPACT
There is no economic or fiscal impact with the exception of staff time in preparing this report.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Note and file the Silicon Valley Power 2024 Power Content Label.
Staff
Reviewed by: Nico Procos, Director of Silicon Valley Power
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. SVP 2024 Power Content Label