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Appendix B. Power Supply Cost MRW has developed a bottoms-up calculation of Alameda CCA's power supply costs, separately forecasting the cost of each power supply element. These elements are renewable energy, non-renewable energy(including power production costs and greenhouse gas costs), resource adequacy(RA) capacity(both renewable and non-renewable supplies) and related costs (e.g., CAISO expenses and broker fees).t Figure 1 illustrates the components of Alameda CCA's expected supply costs. Figure 1: Power Supply Cost Forecast Power Supply Costs 1 I I Renewable Non- Power Renewable Power I r Energy and Over- Energy Capacity Capacity generation Power Greenhouse Production Gas Renewable Power Cost Forecast MRW developed a forecast of renewable generation prices starting from an assessment of the current market price for renewable power. For the current market price, MRW relied on wind and solar contract prices reported by California municipal utilities and Community Choice Aggregation(CCA) entities in 2015 and early 2016, finding an average price of$52 per MWh for these contracts.2 ' MRW included a 5.5%adder in the power supply cost for CAISO costs(ancillary services,etc.),and a 5% premium for contracted supplies to reflect broker fees and similar expenses. 2 MRW relied exclusively on prices from municipal utilities and CCAs because investor-owned utility contract prices from this period are not yet public.We included all reported wind and solar power purchase agreements, excluding local builds(which generally come at a price premium),as reported in California Energy Markets,an July,2016 13-1 MRW&Associates,LLC