AGENDA
Apple Valley Choice Energy | Lancaster Energy | Energy for Palmdale’s Independent Choice | Pico Rivera Innovative Municipal Energy | Pomona Choice Energy | Rancho Mirage Energy Authority | San Jacinto Power | Santa Barbara Choice Energy
California Choice Energy Authority
Board of Directors Regular Meeting Agenda
November 19, 2024, 1:00 p.m.
City of Lancaster, Council Chamber
44933 Fern Ave., Lancaster CA 93534
Members of the public can observe the livestream of the meeting via Zoom by clicking:
https://cityoflancasterca-gov.zoom.us/j/ 89080929282
or telephonically by dialing:
(253) 215-8782
Meeting ID: 89080929282
Members of the public may also participate in this meeting at the following locations:
City of Pomona
Stable Conference Room
752 Commercial St
Pomona, CA 91768
City of Rancho Mirage
Conference Room 3
69-825 Highway 111
Rancho Mirage, CA. 92270
City of Santa Barbara
Mission Creek Conference Room
801 Garden St, Suite 200
Santa Barbara, CA. 93101
City of Pico Rivera
Main Conference Room
6615 Passons Blvd
Pico Rivera, CA. 90660
Members of the public can provide public comment in writing or orally in person as follows:
Written Comments: If you are unable to participate in person and you wish to make a comment, you may submit written comments prior to 4 hours prior to the meeting via email to:
[email protected]. All written comments will be posted online and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting.
Oral Comments: Members of the public can address the Board on items on the agenda at the time the item is being addressed or during Public Comments for topics that are not listed on the agenda. Speakers are limited to three (3) minutes each. In conformance with the Brown Act, no Board action can occur on items presented during Public Comment.
If you desire to speak during Public Comment and are in person, please fill out a speaker card and submit it to CalChoice staff. If you are participating in a remote location, please identify yourself to a CalChoice representative. When you are called to speak, please come forward to the podium and state your name. To address the Board regarding an item on the agenda, please fill out a speaker card and submit it to the Board Secretary before the Board Chair announces the item. 2 California Choice Energy Authority Board Meeting Agenda November 19, 2024
CALL TO ORDER
ROLL CALL
FLAG SALUTE
BOARD COMMENTS & ANNOUNCEMENTS
PRESENTATIONS - None
Consent Calendar
Item 1: Approve Minutes from May 21, 2024, Board of Directors Regular Meeting
RECOMMENDATION
Approve Minutes of the May 21, 2024, Board Meeting.
Item 2: Receive and File Treasurer’s Report for Quarter Ended September 30, 2024
RECOMMENDATION
Receive and file Treasurer’s Report.
Item 3: Consider Approval of Amendment to Professional Services Agreement Between California Choice Energy Authority and Maher Accountancy for Accounting Support Services
RECOMMENDATION
Approve amendment to Professional Services Agreement between California Choice Energy Authority and Maher Accountancy for Accounting Support Services.
Item 4: Consider Approval of Amendment to Master Professional Services Agreement Between California Choice Energy Authority and Calpine Energy Solutions, LLC
RECOMMENDATION
Approve amendment to Master Professional Services Agreement between California Choice Energy Authority and Calpine Energy Solutions, LLC.
New Business
Item 5: Receive Update on Southern California Edison 2025 ERRA Proceeding
RECOMMENDATION
Receive update on Southern California Edison 2025 ERRA Proceeding.
Item 6: Receive 2024 State Legislative Session – Year in Review
RECOMMENDATION
Receive 2024 State Legislative Session – Year in Review. 3 California Choice Energy Authority Board Meeting Agenda November 19, 2024
Item 7:
Item 8:
Consider Approval of Confirmation Between California Choice Energy Authority and NRG Business Marketing, LLC for Scheduling Coordinator and Congestion Revenue Rights Services
RECOMMENDATION
Approve Confirmation between California Choice Energy Authority and NRG Business Marketing, LLC for Scheduling Coordinator and Congestion Revenue Rights Services for a five-year term beginning January 1, 2025, through December 31, 2029; authorize the Chief Executive to modify NRG invoice payment term election upon direction of any CalChoice Member; and authorize the Chief Executive, or his designee, to sign all documents subject to General Counsel approval
Chief Executive/General Manager/General Counsel Update
RECOMMENDATION
Receive update from the Chief Executive/General Manager/General Counsel.
PUBLIC COMMENT
BOARD MEMBER QUESTIONS
BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS
NEXT MEETING: Regular Board Meeting February 18, 2025
If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (“ADA”), please contact [email protected] prior to the meeting for assistance.
Apple Valley | Lancaster | Palmdale | Pico Rivera
Pomona | Rancho Mirage | San Jacinto | Santa Barbara
California Choice Energy Authority
Board of Directors Special Meeting Agenda
May 21, 2024, 1:00 p.m.
City of Lancaster, Council Chamber
44933 Fern Ave., Lancaster CA 93534
CALL TO ORDER: The special meeting of the California Choice Energy Authority was called to order by Allison Burns, General Counsel at 1:00 p.m.
ROLL CALL: All cities were represented.
FLAG SALUTE: General Counsel Allison Burns led the flag salute.
OATH OF OFFICE: Deputy Board Secretary Susan Caputo administered the Oath of Office to New Board Members & Alternates.
ADDITIONAL ITEM: General Counsel Burns announced that GC54954.2 allows for the addition of an item when the Board learns of the item following the posting of the agenda and necessitating immediate action. In this case the action is to allow remote attendance for an individual who became ill the morning of the meeting.
Motion by Lancaster, second by Santa Barbara, to add an item to the agenda to approve the remote attendance of Member Samson.
Motion approved unanimously on roll call vote.
Motion by Lancaster, second by Santa Barbara, to authorize Director Samson to participate remotely pursuant to the terms of the Brown Act.
Motion approved unanimously on roll call vote.
PUBLIC COMMENT: None
Item 1: California Choice Energy Authority Appointment of Officers
RECOMMENDATION
1) California Choice Energy Authority Board of Directors Appoint for a two-year term:
Chair – George Harris or other Board Member;
Vice Chair
2) California Choice Energy Authority Board of Directors Appoint:
Chief Executive – Jason Caudle
Board Secretary – Andrea Alexander
Treasurer – Barbara Boswell
City of Lancaster Member Harris nominated City of Santa Barbara Member Parenteau to serve as Vice Chair. No objections or further nominations were heard.
Item 1
Motion by Pico Rivera, second by San Jacinto, to approve the appointment of the Chair, Vice Chair, Chief Executive, Board, Secretary, and Treasurer as stated.
Motion approved unanimously on roll call vote.
BOARD COMMENTS & ANNOUNCEMENTS: None
PRESENTATIONS – Brown Act Primer – Allison Burns, General Counsel General Counsel Allison Burns gave an overview of Board duties and responsibilities including Ethics Training, Conflicts of Interest, the Brown Act, and the Public Records Act.
Consent Calendar
Item 2: Consider Adoption of Resolution No. 2024- 002 Establishing Regular Board Meeting Schedule.
RECOMMENDATION
Adopt Resolution No. 2024- 002 Establishing Regular Board Meeting Schedule.
Item 3: Consider Adoption of Resolution No. 2024-003 Approving Fourth Amended and Restated Bylaws of the California Choice Energy Authority
RECOMMENDATION
Adopt Resolution No. 2024- 003 Approving Fourth Amended and Restated Bylaws of The California Choice Energy Authority.
No requests to speak on the Consent Calendar were received.
City of Palmdale Board Member Samson confirmed that no one over the age of 18 was in the room at the remote location.
Motion by Pico Rivera, second by Santa Barbara, to approve the Consent Calendar.
Motion approved unanimously on roll call vote.
New Business
Item 4: Consider Adoption of Resolution No. 2024- 004 Approving Fiscal Year 2024/25 California Choice Energy Authority Budget
RECOMMENDATION
Adopt Resolution No. 2024-004 Approving Fiscal Year 2024/25 California Choice Energy Authority Budget.
Treasurer Barbara Boswell presented the proposed budget.
Pico Rivera Board Member Carmona inquired regarding expense discrepancy in the report and Treasurer Boswell indicated that the total is correct.
No requests to speak were received on this item.
Motion by Santa Barbara, second by Apple Valley, to adopt Resolution No. 2024-004 approving Fiscal Year 2024/25 California Choice Energy Authority Budget.
Motion approved unanimously on roll call vote.
Item 5: Chief Executive/General Manager/General Counsel Update
RECOMMENDATION
. Receive updates from the Chief Executive/General Manager/General Counsel Chief Executive Jason Caudle commented that California Choice Energy started some years ago with the Lancaster City Council as CalChoice Board of Directors and that the transition will allow for collective ownership to accomplish more than would be possible as individuals and that CalChoice has the opportunity to be impactful to each individual city as well as to the state.
Cathy Defalco updated the Board on contract negotiations with NRG and Calpine as well as the All-Member Meeting.
PUBLIC COMMENT
None
BOARD MEMBER QUESTIONS
None
BOARD REQUESTS FOR FUTURE AGENDA ITEMS
None
Chief Executive Caudle commented on CalChoice rebranding and Board direction to return with an agenda item to a future meeting.
Chair Harris adjourned the meeting at 1:42 pm.
NEXT MEETING: Regular Board Meeting August 20, 2024, Contingent on Board Approval of Meeting Schedule
______________________________
Susan Caputo, MMC
Deputy Board Secretary
I
STAFF REPORT
California Choice Energy Authority
11/19/24
JC
Date: November 19, 2024
To: Chair Harris and Authority Members
From: Barbara Boswell, Treasurer
Item 2: Receive and File Treasurer’s Report for Quarter Ending September 30, 2024
Recommendation:
Receive and file Treasurer’s Report for Quarter Ending September 30, 2024.
Fiscal Impact:
There is no fiscal impact to California Choice Energy Authority (CalChoice).
Background:
Included in the report to the CalChoice Board are the following unaudited Financial Statements as of September 30, 2024:
• Statement of Net Position – Reports Assets, Liabilities and Net Position • Statement of Revenues, Expenses and Changes in Net Position - Reports Income and Expenses for the Period
Attachment:
California Choice Energy Authority Unaudited Financial Statements as of September 30, 2024 ASSETS
CURRENT ASSETS
Cash and cash equivalents 4,968,369
Receivables: -
Accounts 755,893
Due from other governments -
Prepaid Items 22,741
TOTAL ASSETS 5,747,003
LIABILITIES
CURRENT LIABILITIES
Accounts payable 799,393
TOTAL CURRENT LIABILITIES 799,393
Due to Lancaster Energy 2,659
Due to Members - Energy Sales -
Unearned Revenue 837,477
Supplier Deposits 2,497,050
TOTAL LIABILITIES 4,136,579
NET POSITION
Unrestricted - Beginning 107,510
Reserved for Future Operational Costs 1,400,000
Change in net position 102,914
TOTAL NET POSITION 1,610,424
California Choice Energy Authority
Statement of Net Position - Unaudited
September 30, 2024
Item 2 Attachment
OPERATING REVENUES
Associate Member Fees - Apple Valley 37,953
Associate Member Fees - Lancaster 91,089
Associate Member Fees - Palmdale 91,089
Associate Member Fees - Pico Rivera 34,461
Associate Member Fees - Pomona 102,513
Associate Member Fees - Rancho Mirage 50,091
Associate Member Fees - San Jacinto 27,480
Associate Member Fees - Santa Barbara 63,204
Interest Income 35,607
Sponsorship Income 51,000
Program Funds - DAC-GT 57,268
TOTAL OPERATING REVENUES 641,755
OPERATING EXPENSES
Administration, legal and general expenses 527,703
Program Expenses - DAC-GT 11,138
TOTAL OPERATING EXPENSES 538,841
OPERATING INCOME 102,914
CHANGE IN NET POSITION 102,914
NET POSITION AT BEGINNING OF YEAR 1,507,510
NET POSITION AT 9/30/2024 1,610,424
California Choice Energy Authority
Statement of Revenues, Expenses,
and Changes in Net Position (Unaudited)
For the period ended September 30, 2024
STAFF REPORT
California Choice Energy Authority
11/19/24
JC
Date:
To:
From:
Item 3:
November 19, 2024
Chair Harris and Authority Members
Jason Caudle, Chief Executive
Approve Amendment to Professional Services Agreement between California Choice Energy Authority and Maher Accountancy for Accounting Support Services
Recommendation:
Approve Amendment No. 4 to the Professional Services Agreement between California Choice Energy Authority (CalChoice) and Maher Accountancy (Maher) for accounting support services for a term through December 31, 2026, with two automatic one-year extensions and authorize the Chief Executive, or his designee, to sign all documents subject to General Counsel approval.
Fiscal Impact:
There is no fiscal impact to CalChoice. The services will be paid for by revenue collected by each member city.
Background:
On October 29, 2020, an Agreement for Accounting Services with Maher was executed and further amended on October 29, 2021, April 7, 2022, and January 9, 2024. Maher provides accounting support services, including monthly reporting to member city finance departments and monthly and quarterly reports to state agencies.
Staff recommends extending the existing Agreement for a period of twelve (12) months, plus two (2) automatic one-year extensions from the Effective Date of Amendment No. 4.
Additionally, staff recommends amending the Agreement to authorize an adjustment in compensation for each subsequent one-year extension consistent with the annual change in the Consumer Price Index (CPI) during the preceding year, for All Urban Consumers, for the Los Angeles, Long Beach and Anaheim areas, published by the United States Department of Labor, Bureau of Labor Statistics, for the month preceding the month of contract award commencing with the initial extension.
Attachment:
Maher Accountancy Amendment No. 4
AMENDMENT NO. 4. TO AGREEMENT FOR PROFESSIONAL CONSULTING
SERVICES BY AND BETWEEN CALIFORNIA CHOICE ENERGY AUTHORITY
AND MAHER ACCOUNTANCY
This Amendment ("Amendment No. 4") is hereby entered into by and between California Choice Energy Authority ("CalChoice") and Maher Accountancy ("Consultant") with respect to the Agreement for Professional Consulting Services between the parties dated October 29, 2020, for California Choice Energy Authority Partner City Technical Support Services (the "Agreement"). CalChoice and Consultant are collectively referred to as "Parties.”
The Parties agree as follows:
1. The term of the Agreement is hereby extended and shall continue in full force and effect for twelve (12) months, plus two (2) automatic one-year extensions from the Effective Date of Amendment No. 4 (the “Term”) unless the Agreement is sooner terminated in accordance with the Agreement; provided, however, that the Owner and Consultant may mutually agree in writing to extend the Term of this Agreement.
2. Commencing with the initial extension, authorize an annual adjustment in compensation for each subsequent one-year extension consistent with annual change in the Consumer Price Index (CPI), during the preceding year, for All Urban Consumers, for the Los Angeles, Long Beach and Anaheim areas, published by the United States Department of Labor, Bureau of Labor Statistics (or a reasonably equivalent index should the stated index be discontinued) contingent upon the appropriation of funds by the Board in the annual budget for such fiscal year. The index level for the month preceding the month of contract award will become the beginning index.
3. All other terms and provisions of this Agreement are hereby reaffirmed.
In witness whereof the parties have executed the Amendment on the date set forth below:
MAHER ACCOUNTANCY
___________________________________
Michael J. Maher, CPA
Dated: _____________________________
CALIFORNIA CHOICE ENERGY AUTHORITY
___________________________________
Jason Caudle, Chief Executive
BY: Barbara Boswell, Treasurer
Dated: _____________________________
Item 3 Attachment
STAFF REPORT
California Choice Energy Authority
11/19/24
JC
Date:
To:
From:
Item 4:
November 19, 2024
Chair Harris and Authority Members
Jason Caudle, Chief Executive
Consider Approval of Amendment to Master Professional Services Agreement between California Choice Energy Authority and Calpine Energy Solutions, LLC
Recommendation:
Approve Amendment to the Master Professional Services Agreement between California Choice Energy Authority (CalChoice) and Calpine Energy Solutions, LLC (Calpine) for data management services and authorize the Chief Executive, or his designee, to sign all documents subject to General Counsel approval.
Fiscal Impact:
There is no fiscal impact to CalChoice. The services will be paid for by revenue collected by each member city, and costs have been included in the adopted CalChoice Annual FY 2024/25 Budget.
Background:
On November 1, 2014, an Agreement for Data Management Services with Calpine was executed and further amended on September 1, 2017. Calpine provides customer enrollment, billing, essential data management functions and customer contact centers responsible for handling inquiries for CalChoice’s Community Choice Aggregator (CCA) members.
The Effective Period of the Master Agreement reflects an automatic yearly renewal of term (each a “Term Extension”) unless one Party provides prior written notice of its intention not to renew to the other Party six calendar months in advance of the end of the current Term Extension. Under the terms of the Master Agreement, Calpine provided such notice to CalChoice on June 28, 2024.
At this time staff recommends amending and extending the existing Master Agreement for a period of approximately four (4) months through March 31, 2025. This extension will provide CalChoice and Calpine with adequate time to negotiate terms for a new long-term agreement that staff will bring back to the Board at a subsequent meeting for consideration and potential approval.
Attachment:
Amendment to Master Professional Services Agreement Between Calpine Energy Solutions, LLC and California Choice Energy Authority
AMENDMENT to
MASTER PROFESSIONAL SERVICES AGREEMENT
Between Calpine Energy Solutions, LLC ("Calpine")
And
California Choice Energy Authority (“CalChoice”)
Agreement Date: November 1, 2014
Amendment Date: October 15, 2024
This Amendment is made and entered into by and between Calpine and CalChoice. Calpine and CalChoice hereby agree to amend the Master Professional Services Agreement (“Agreement”) between Calpine and CalChoice dated as of November 1, 2014, (the “Agreement”). Calpine and CalChoice are each a “Party” hereto and together are “the Parties”.
WHEREAS, Calpine and CalChoice previously amended the Effective Period of the Agreement on September 1, 2017, in the Superseding Addendum for Data Manager Services; WHEREAS, the Effective Period reflects an automatic yearly renewal of term (each a “Term Extension”) unless one Party provides prior written notice of its intention not to renew to the other Party six calendar months in advance of the end of the current Term Extension; WHEREAS, Calpine provided such notice to CalChoice on June 28, 2024; WHEREAS, the Parties now wish to agree to extend the current Term Extension until March 31, 2025.
NOW, THEREFORE, for good and sufficient consideration, which the Parties acknowledge, including the mutual covenants set forth in this Amendment, the Parties further agree to amend the Agreement as described below.
I. The Parties agree that the current Term Extension shall end on March 31, 2025, with no further renewal of term. No further notice regarding the termination or expiration date is required.
II. All capitalized terms used, but not defined, in this Amendment shall have the meanings set forth in the Agreement. As modified by this Amendment, the Agreement shall remain in full force and effect.
III. This Amendment may be executed in counterparts, each of which shall be an original and all of which taken together shall constitute one and the same agreement. The Parties agree that, if a copy of this Amendment is executed by a Party and transmitted to the other Party by facsimile, the copy received shall be deemed for all legal purposes to be an original executed by the transmitting Party.
Item 4 Attachment
2 IN WITNESS WHEREOF, the authorized representatives of the Parties have executed this Amendment to be effective as of the Amendment Date.
CALPINE ENERGY SOLUTIONS, LLC CALIFORNIA CHOICE ENERGY
AUTHORITY
By: ____________________________________ By: _______________________________ Name: __________________________________ Name: _____________________________ Title: ___________________________________ Title: ______________________________ Date: ___________________________________ Date: ______________________________ Approved as to Form:
By: ________________________________
Name: ______________________________
Title: _______________________________
Date: _______________________________
PLACEHOLDER
California Choice Energy Authority
Date: November 19, 2024
To: Chair Harris and Authority Members
Item 5: Receive Update on Southern California Edison 2025 ERRA Proceeding Recommendation:
Receive update on Southern California Edison 2025 ERRA Proceeding.
STAFF REPORT
California Choice Energy Authority
11/19/24
JC
Date:
To:
From:
Item 6:
November 19, 2024
Chair Harris and Authority Members
Jason Caudle, Chief Executive
2024 California Legislative Session Year in Review
Recommendation:
Receive 2024 California Legislative Session in Review from the Andrea Deveau, Deveau Burr Group Managing Partner
Fiscal Impact:
There is no fiscal impact by this action.
Background:
The Deveau Burr Group, LLC is responsible for advocating policy and government relations matters on behalf of California Choice Energy Authority and its member cities.
In 2024, 639 Senate Bills and 1,520 Assembly Bills were introduced by the California State Legislature, including a number of key bills focusing on energy reliability, Artificial Intelligence and Climate legislation. The attached 2024 California Legislative session report has been prepared to provide the Authority Board with an overview of key legislative actions, developments, and achievements from the past year.
Attachment:
2024 Legislative Session - Year in Review for CalChoice 2024 LEGISLATIVE SESSION
Year in Review
THANK YOU!
Our team would like to take a moment to sincerely thank you for your trust and partnership.
It has been a true privilege to collaborate with you, and as we move into 2025, we reflect on the incredible journey of establishing the Deveau Burr Group. Your belief in our vision and services has been a key driving force behind our commitment to excellence, and we are deeply grateful for the confidence you’ve placed in us.
As we enter the new legislative session, we’re excited to build on the strong foundation we’ve created together, striving to deliver even greater value and success for you. We look forward to continuing this journey and exceeding your expectations in 2025 and beyond.
We are pleased to share this final report on the 2024 California Legislative session. This report provides an overview of key legislative actions, developments, and achievements from the past year, organized by policy issue areas for easy review.
Thank you once again for being a valued client. We look forward to a prosperous and rewarding 2025 together.
DBG Team x
Item 6 Attachment
bills reached the Governor’s desk
bills signed
bills vetoed
veto rate
1,206
1,017
189
15.7%
In 2023
just over 1,100 bills
reached Governor
Newsom’s Desk
and he vetoed
14.9% of the bills.
Over the Past 32 Years
The annual average percentage of introduced bills in the California Legislature that reach the Governor’s Desk is 47%. This means that nearly 1 out of every 2 bills
introduced in the CA Legislature reaches the Governor's Desk, and that just shy of 40% of all introduced bills are enacted into law every year.
In 2024, 639 Senate Bills and 1,520 Assembly Bills were introduced.
Source: Chris Micheli
CalMatters reports that Newsom cited policy problems as his reason for vetoing about 40% of the bills. For the third year in a row, the most common reason Newsom gave for vetoing a bill was budget concerns — also about 40%.
Fun Facts
Data below was collected by Chris Micheli 2007-2024:
The second year of the 2-year session always has fewer bill introductions than the first year.
The Assembly generally has two or more times the number of bill introductions than the Senate, which we would expect as there are twice as many Assembly Members as Senators.
It is rare for a bill to fail passage on the floor in its house of origin, generally less than 1% chance of failing.
California’s 2024 energy and climate policies reflect a holistic approach that intertwines decarbonization with economic growth, technological innovation, and social equity, all while maintaining the state’s leadership in sustainable energy and resilience in the face of climate change. When looking at the larger picture of policy enacted this session, the two major categories that prevailed are around Climate and Electric Reliability. Below represents the takeaways in these two categories.
In 2024, California remains at the forefront of energy and climate policy, driving ambitious initiatives to achieve carbon neutrality and address the impacts of climate change. The state’s aggressive environmental goals are shaped by landmark legislation, including SB 100, the 100% Clean Energy Act of 2018 (passed in 2018), which mandates that California’s electricity supply be fully powered by renewable and zero-carbon energy sources by 2045. As part of this effort, the state continues to expand solar, wind, and battery storage infrastructure while phasing out fossil fuel generation and reducing reliance on natural gas.
Recent laws like AB 1279, the California Climate Crisis Act (passed in 2022), codify the state’s goal of achieving carbon neutrality by 2045 and reaching net-negative greenhouse gas emissions thereafter. The California Cap-and-Trade Program, created under AB 32, the Global Warming Solutions Act of 2006 (passed in 2006), also remains a cornerstone of the state’s market-driven approach to lowering emissions, creating financial incentives for businesses to reduce their carbon footprint.
Climate Policy & Goals
CLIMATE & ENERGY
Community Choice Aggregation (CCA) programs play a vital role in this transition, enabling local governments to procure renewable energy for their communities. CCAs support
California’s SB 100 goals while deploying innovative solutions like battery storage and distributed energy resources (DERs) to enhance grid resilience.
As California advances its clean energy goals, attention is also being directed toward high-demand sectors like data centers, which consume significant amounts of electricity. The state’s Title 24 Energy Efficiency Standards (updated regularly, most recently in 2022) and renewable energy procurement
incentives push data centers to adopt greener technologies, such as advanced cooling systems and renewable energy
sources, to minimize their environmental impact.
Corporate climate accountability is another area that
continued to gain momentum in 2024. New legislation, such as SB 253, the Climate Corporate Data Accountability Act (passed in 2023), requires large corporations to disclose their greenhouse gas emissions publicly, including Scope 1, 2, and 3 emissions, to enhance transparency and track their climate impacts. This law aims to hold businesses accountable for their environmental footprints, pushing them to adopt more sustainable practices and align with California's broader climate goals. The state is actively implementing these regulations, overseen by the California Air Resources Board (CARB), to ensure accurate reporting and compliance.
Climate Policy & Goals
Electric Reliability
California’s Resource Adequacy (RA) requirements also ensure that the state maintains grid reliability while transitioning to renewable energy. Load-serving entities, including CCAs, must procure sufficient capacity to meet peak demand, with a growing emphasis on securing flexible resources such as battery storage and demand response systems to account for the intermittent nature of renewables. Recent reforms to the RA framework focus on long-duration storage and other advanced technologies to maintain energy reliability in a decarbonized grid.
Battery storage technology plays a critical role in California’s transition to renewable energy. As intermittent sources like solar and wind become dominant, battery storage is essential to store excess energy and deliver it when demand is high or renewable generation is low. In 2024, Just this last week, Governor Newsom announced that he will convene state level experts to collaborate on advanced battery storage technologies which aims to accelerate the deployment of large-scale battery storage systems and address the technical, financial, and regulatory barriers that hinder their widespread adoption. This initiative builds on existing policies like the Self-Generation Incentive Program (SGIP), established by the California Public Utilities Commission (CPUC), which provides rebates to encourage the installation of energy storage technologies.
A key focus in 2024 is ensuring energy equity and resilience, especially in the face of increasing climate risks such as wildfires, extreme heat, and droughts. Legislation like SB 379 (passed in 2022) requires local governments to incorporate climate resilience into their general plans, ensuring that vulnerable communities are better prepared for these challenges. Meanwhile, SB 846 (passed in 2022) supports the ongoing operation of the Diablo Canyon nuclear power plant, balancing emissions reductions with grid reliability as renewable and storage infrastructure expands.
It should also be noted that on August 31, the Governor convened a special session of the legislature to act on a package of bills intended to address gasoline prices. This special session will have to conclude by November 30, when the current two-year legislature term officially ends.
Electric Reliability
2024 Climate Legislation
SB 950 (Skinner) Energy: transportation fuels: inventories: turnaround and maintenance
Failed Passage but could be reconsidered as part of the Special Session SB 219 (Wiener/Stern) Greenhouse gases: climate corporate accountability: climate-related financial risk Signed by the Governor
This is the vehicle to address some of the concerns with last year’s SB 253 and SB 261 (Climate accounting/reporting). Among other things, SB 219 delays regulations until July, 2025, and authorizes consolidating reports at the parent company level, removes the annual fee requirement upon filing, and makes the state board's contract with an emissions reporting organization optional.
SB 1420 (Caballero) Hydrogen production facilities: certification and environmental review
Signed by the Governor
This bill revises the definition, excluding projects that burn biomass fuels but including hydrogen production facilities that do not use fossil fuels and receive state or federal funding. This change increases the duties on lead agencies, creating a state-mandated local program.
AB 3233 (Addis) Oil and gas: operations: restrictions: local authority Signed by the Governor
This bill allows local entities to set limits or bans on oil and gas operations within their jurisdictions, regardless of state approvals.
SB 1193 (Menjivar) Airports: leaded aviation gasoline
Signed by the Governor
The State Aeronautics Act governs aviation-related activities and allows the Department of Transportation to set and enforce rules. Aims to prohibit airports and aviation retailers from selling leaded aviation gasoline after January 1, 2031.
AB 1921 (Papan) Energy: renewable electrical generation facilities: definition.
Signed by the Governor
This bill would revise the definition of “renewable electrical generation facility” to include a facility that uses fuel cells or linear generators that use specified fuels.
AB 2368 (Petrie-Norris) System reliability and outages.
Signed by the Governor
This bill would require that the resource adequacy program consider mitigation measures, if the commission determines they are needed, to reduce costs to ratepayers. The bill would require the PUC to determine and authorize the most efficient and equitable means of ensuring that the resource adequacy program can reasonably maintain a standard measure of reliability and use it for planning purposes.
AB 2779 (Petrie-Norris) Independent System Operator: transmission planning Signed by the Governor
This bill would require the Independent System Operator, upon approval of each transmission plan, to report to the Public Utilities Commission and to the relevant policy committees of each house of the Legislature any new use of any grid enhancing technology that is deemed reasonable by the Independent System Operator in that plan and the cost and efficiency savings of the deployment of that grid enhancing technology. 2024 Electric Reliability Legislation
2024 Electric Reliability Legislation
AB 3264 (Petrie-Norris) Energy: cost framework: residential rates: demand-side management programs report: electrical transmission grid study Signed by the Governor
This bill would require the PUC, in consultation with the State Energy Resources Conservation and Development Commission, to develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households in California.
SB 1006 (Padilla) Electricity: transmission capacity: reconductoring and grid-enhancing technologies
Signed by the Governor
This bill would require each transmission utility, as defined, on or before January 1, 2026, and every 2 years thereafter, to prepare a study of the feasibility of projects using grid-enhancing technologies to achieve, among other purposes, increased capacity to connect new renewable energy and zero-carbon resources.
SB 1298 (Cortese) Certification of thermal powerplants: data centers Failed Passage by the Legislature
This bill would have authorized the commission to exempt from certification a thermal powerplant with a generating capacity of up to 150 megawatts if specified requirements are met, including that it is used solely as a backup generation facility for a data center.
With 35 of the world’s top 50 artificial intelligence (AI) companies being headquartered in California, the state is at the epicenter of this developing technology. Legislators recognize that the rapid advancement of AI technology creates unprecedented opportunities along with significant challenges.
Without any federal legislation regulating AI, and with the rapid growth of advanced AI models, California legislators clearly felt a responsibility to develop policies that balance fostering innovation while ensuring the safe deployment of AI. This sense of responsibility led to a major wave of legislation in 2024. With approximately 50 bills being introduced that touched on AI, many legislators sought to put the state at the forefront of AI safety regulations to coincide with the growth of the technology.
Among the dozens of bills that made it to the Governor’s desk, the lion’s share of the focus was on SB 1047 by Senator Scott Wiener of San Francisco. This bill intended to establish stringent safety protocols for developers of large AI models, including a requirement for third-party audits and a shutdown feature. As one of the heaviest lobbied bills of the year, ultimately Governor Newsom vetoed it. The Governor explained that the bill was too narrowly focused on large AI models, which he believed could “give the public a false sense of security.” He also emphasized the need for a more flexible regulatory approach that addresses both large and small AI systems, as smaller models can also pose significant risks.
Governor Newsom’s veto of SB 1047 reflects the challenges in balancing innovation with regulation, particularly in a field as fast-moving as AI.
ARTIFICIAL INTELLIGENCE
AI Transparency and Consumer Protections
Transparency around AI’s impact on society, particularly with regards to data and content generation, were the subject of many of this year’s AI bills. Legislators grappled with whether and how AI-generated images, recordings, and videos should be marked. Among the bills sent to the Governor, legislators developed requirements for developers to disclose their training data, which is the data a developer uses to train the algorithm or machine learning model.
AI in Elections and Disinformation
With the upcoming General Election in November 2024, lawmakers tackled emerging threats related to AI-generated misinformation and deepfakes and their potential impact on voters.
Privacy and Data Protection
As AI systems rely heavily on vast datasets, there will likely be continued efforts to align AI regulation with existing privacy laws, such as the California Consumer Privacy Act (CCPA).
Performer’s Digital Likenesses
Before California became the epicenter of AI technology, the state has been the epicenter of entertainment in film and television. The Legislature considered major bills that considered how actors and performers - alive or dead - protect their digital likeness against unauthorized use as an important labor protection.
Themes Amongst 2024 AI Legislation
AI-generated image via Adobe
Automated Decision Making Tools
Amongst the areas of concern in the deployment of AI is how the technology is being used to make consequential decisions that have major legal or personal implications. Legislators continue to see a balance on developing a framework for the responsible development and deployment of these tools.
Education
The Legislature considered a number of bills on how AI is being used in public education, and ultimately passed
legislation to form working groups to identify potential opportunities and challenges.
Collaboration with Federal and International
Regulations
As federal AI regulation is still evolving and the European Union's AI Act begins to take effect in 2025, California legislators discussed how to harmonize AI laws with broader federal and global standards.
What is clear from this session is that California remains at the forefront of both the development of AI technology and policy, and discussions about how to regulate this emerging technology are far from over.
Themes Amongst 2024 AI Legislation
AB 1008 (Bauer-Kahan) California Consumer Privacy Act of 2018: personal information Signed by the Governor
Clarifies that the California Consumer Privacy Act of 2018 (CCPA) applies to personal information regardless of the format.
AB 1791 (Weber) AI: Digital Content Provenance
Failed passage by the Legislature
This bill would have required businesses with generative AI models to implement the Coalition for Content Provenance and Authenticity’s technical open standard and content credentials into their tools and platforms.
AB 1831 (Berman) Crimes - child pornography
Signed by the Governor
This bill expands the crime of child pornography to include when the representation of information, data, or an image is a representation of a real or fictitious person created through use of AI software or computer-generated means, who is, or who a real person would regard as being, a real person under 18 years of age, engaging in or simulating, sexual conduct.
AB 1836 (Bauer-Kahan) Use of likeness - digital replica Signed by the Governor
This bill establishes that a person who produces, distributes, or makes available a digital replica of a deceased personality in an audiovisual work or sound recording be held liable to the amount of $10,000 or actual damages suffered by persons controlling the rights.
AB 1856 (Ta) Artificial Intelligence and Deepfakes
Failed passage by the Legislature
This bill would have made it a crime to intentionally distribute a deepfake of an intimate body part of another person or a deepfake of the person depicted engaging in sexual acts and defines deepfakes.
AB 2013 (Irwin) Artificial intelligence: training data transparency Signed by the Governor
This bill requires, on or before January 1, 2026, a developer of an artificial intelligence system or service made available to Californians for use to post on the developer’s internet website documentation regarding the data used to train the artificial intelligence system or service.
2024 Artificial Intelligence Legislation
AB 2355 (Carrillo) Political advertisements: artificial intelligence Signed by the Governor
This bill requires a person, committee, or other entity that creates, originally publishes, or originally distributes a qualified political advertisement to include in the advertisement a specified disclosure that the advertisement was generated, in whole or in part, using AI.
AB 2602 (Kalra) Contracts against public policy: personal or professional services:
digital replicas
Signed by the Governor
This bill prohibits contracts between a studio, individual, or any other party allowing the use of a digital replica of a performer’s voice or likeness in place of in-person work unless the performer is represented by a union or legal counsel. The bill applies the same requirements to the use of a performer’s voice and likeness to train a generative artificial intelligence system.
AB 2652 (Muratsuchi) State Dept of Education: AI working group Failed passage by the Legislature
This bill would have required the Superintendent, in consultation with the State Board of Education, to, on or before January 1, 2025, convene a working group for the purpose of exploring how AI and other forms of similarly advanced technology are currently being used in education.
AB 2655 (Berman) Defending Democracy from Deepfake Deception Act of 2024 Signed by the Governor
Requires large online platforms, as defined, to remove materially deceptive and digitally modified or created content related to elections, or to label that content, during specified periods before and after an election, if the content is reported to the platform AB 2811 (Lowenthal) AI; Legal Professionals
Failed passage by the Legislature
This bill would have required legal professionals to disclose to the court whether they have used artificial intelligence or machine learning to prepare any pleadings, motions, or other documents filed with any court in this state.
AB 2839 (Pellerin) Elections: deceptive media in advertisements Signed by the Governor
This bill prohibits a person, committee, or other entity from knowingly distributing an advertisement or other election communication, as defined, that contains certain materially deceptive and digitally altered or digitally created images or audio or video files with the intent to influence an election or solicit funds for a candidate or campaign. 2024 Artificial Intelligence Legislation
AB 2877 (Bauer Kahan) CA Consumer Privacy Act if 2018: artificial intelligence: training Failed Passage by the Legislature
This bill would have prohibited developers of AI systems or tools from using the personal information of children under 16 to train AI systems or services without first obtaining affirmative authorization, and even with authorization, the data must be deidentified and aggregated before it is used to train AI.
AB 2885 (Bauer Kahan) Define “Artificial Intelligence”
Signed by the Governor
This bill defines the term ”artificial intelligence” to mean an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.
AB 2905 (Low) Telecommunications - automatic dialing-announcing devices & artificial voices
Signed by the Governor
This bill requires autodialing devices to notify consumers if a prerecorded message uses an artificial voice.
AB 2930 (Bauer Kahan) Automated Decision Tools
Failed passage by the Legislature
This bill would have required a deployer, as defined, and a developer of an automated decision tool, as defined, to, on or before January 1, 2026, and annually thereafter, perform an impact assessment for any automated decision tool the deployer uses.
AB 3030 (Calderon) Health Care Services - AI
Signed by the Governor
Requires a health facility, clinic, physician’s office, or office of a group practice that uses generative AI to generate written or verbal patient communications pertaining to patient clinical information to ensure that those communications include a disclaimer that indicates to the patient that the communication was generated by generative artificial intelligence and clear instructions on how the patient may contact a human person.
AB 3050 (Low) Artificial Intelligence
Failed passage by the Legislature
This bill would have required the Department of Technology to issue regulations to establish standards for watermarks to be included in covered AI-generated material, and require an AI-generating entity to include digital content provenance in the watermarks. 2024 Artificial Intelligence Legislation
2024 Artificial Intelligence Legislation
AB 3058 (Low) CalUBI pilot programs - Universal basic income: employment replaced by artificial intelligence
Failed passage by the Legislature
This bill would have created a universal basic income program for residents whose employment is replaced by AI.
AB 3095 (Waldron) Artificial Intelligence
Failed passage by the Legislature
This bill would declare the intent of the Legislature to enact legislation relating to artificial intelligence. More substance was never amended into the bill.
AB 3204 (Bauer-Kahan) Data digesters
Failed passage by the Legislature
This bill would have required data digesters to register with the CPPA, pay a registration fee, and provide specific information, prescribe penalties for a failure to register as required by these provisions, require the agency to create a page on its internet website where this registration information is accessible to the public, and create a fund known as the “Data Digester Registry Fund.”
AB 3211 (Wicks) Content Provenance, Authenticity and Watermark standards Failed passage by the Legislature
This bill would have established the California Digital Content Provenance Standards Act, which would require a GenAI provider to take certain actions to assist in the disclosure of provenance data.
SB 892 (Padilla) Public contracts: AI services
Vetoed by the Governor - Veto Message Here
This bill would have required the Department of Technology to establish safety, privacy, and nondiscrimination standards relating to artificial intelligence services, as defined.
Commencing August 1, 2025, the bill would prohibit a contract for artificial intelligence services, as defined, from being entered into by the state unless the provider meets those standards.
SB 893 (Padilla) AI research hub
Failed passage by the Legislature
This bill have have required Gov Ops Agency, GO-Biz, and the DOT to collaborate to establish the California Artificial Intelligence Research Hub (hub) in the Government Operations Agency, and have the hub serve as a centralized entity to facilitate collaboration between government agencies, academic institutions, and private sector partners to advance AI research and development.
2024 Artificial Intelligence Legislation
SB 926 (Wahab) Distribution of intimate images - computer generated Signed by the Governor
This bill creates a new crime for a person to intentionally create and distribute any sexually explicit image of another identifiable person that was created in a manner that would cause a reasonable person to believe the image is an authentic image of the person depicted.
SB 933 (Wahab) Crimes: child pornography
Failed passage by the Legislature
This bill would add images made by artificial intelligence to the visual depictions currently banned under law that depict minors engaging in or simulating sexual acts.
SB 942 (Becker) Consumer protection - Generative AI
Signed by the Governor
This bill places obligations on businesses that provide GenAI systems to make accessible tools to detect whether specified content was generated by those systems. These “covered providers” are required to offer visible, and include imperceptible, markings on AI-generated content to identify it as such.
SB 970 (Ashby) Artificial intelligence technology
Failed passage by the Legislature
This bill would have required the Judicial Council to review the impact of AI on court proceedings and develop rules of court for claims that evidence has been generated by or manipulated by AI; it would have provided that the use of synthetic content is false impersonation for purposes of criminal offenses where false personation of another is an element of the offense; and would have required specified sellers of AI technology to provide a consumer warning relating to the misuse of the technology.
SB 981 (Wahab) Sexually explicit digital images
Signed by the Governor
This bill requires social media platforms to provide a mechanism for reporting “sexually explicit digital identity theft,” essentially the posting of nonconsensual, sexual deepfakes; and requires platforms to timely respond and investigate and to remove instances of this material.
SB 1047 (Wiener) Safe & Secure Innovation for Frontier AI Systems Act Vetoed by the Governor - Veto Message Here
This bill would have required developers of powerful AI models and those providing the computing power to train such models to put appropriate safeguards and policies into place to prevent critical harms. This bill would have established a state entity to oversee the development of these models and called for the creation of a consortium to develop a framework for a public cloud computing cluster
SB 1120 (Becker) Health care coverage: utilization review Signed by the Governor
This bill establishes requirements on health plans and insurers applicable to their use of AI for utilization review and utilization management decisions, including, that the use of AI, algorithm, or other software must be based upon a patient’s medical or other clinical history and individual clinical circumstances as presented by the requesting provider and not supplant health care provider decision making.
SB 1154 (Hurtado) CA Preventing Algorithmic Collusion Act of 2024
Failed passage by the Legislature
This bill would have prohibited the use of pricing algorithms to set or recommend a price or commercial term in this state that incorporates nonpublic competitor data, which may be enforced by the Attorney General; and would have established a partially rebuttable presumption that the use of a prohibited pricing algorithm is a violation of specified state laws prohibiting anticompetitive behavior.
SB 1220 (Limon) Public benefits contracts: phone operator jobs
Vetoed by the Governor - Veto Message Here
This bill would have prohibited state and local agencies from contracting for using call center services related to public benefits that use AI or automated decision-making systems that eliminate or automate workers’ core functions, with certain exceptions
SB 1229 (Nguyen) Insurance disclosures
Failed passage by the Legislature
This bill would have required a property and casualty insurer to disclose to an applicant or insured when it has used artificial intelligence to make decisions on, or make decisions that affect, applications and claims review, as specified.
2024 Artificial Intelligence Legislation
2024 Artificial Intelligence Legislation
SB 1381 (Wahab) Crimes: child pornography
Signed by the Governor
This bill expands existing provisions of law related to child pornography and obscene matter depicting a minor engaged in sexual conduct to include matter that is digitally altered or generated by the use of AI.
SB 1446 (Smallwood-Cuevas) Grocery establishment and retail drug establishment employees: self-service checkout and technologies affecting essential job functions.
Failed passage by the Legislature
This bill would have prohibited a grocery or drug store (“retail store”) from providing a self-service checkout option for customers unless specified workplace conditions are met.
SB 1235 (Gonzalez) Public postsecondary education: AI and Deepfake Working Group Failed passage by the Legislature
This bill would have required an unspecified public institution of higher education to establish the Artificial Intelligence and Deepfake Working Group to evaluate and advise the Legislature and the public on the relevant issues and impacts of artificial intelligence and deepfakes.
SB 1288 (Becker) Public schools: artificial intelligence working group Signed by the Governor
This bill requires the Superintendent of Public Instruction (SPI) to convene a working group on AI and requires that working group to develop expanded guidance and a model policy on AI for use by local educational agencies (LEAs) and charter schools.
Photo by Carlos Barria, Reuters
The 2024-25 California state budget, signed by Governor Gavin Newsom, aimed to address a $46.8 billion shortfall while maintaining key investments in critical areas such as education, health care, homelessness, and public safety. The state plans to draw $6 billion from reserves, including $4.9 billion from the Rainy Day Fund, to balance the budget while preserving $22.2 billion in total reserves by the end of the fiscal year.
Education: Despite the fiscal challenges, the budget boosts per-pupil spending for TK-12 schools, reaching $18,339, with an overall increase when including all funds. However, planned one-time investments in school facilities were cut, and the expansion of inclusivity for disabled children in state preschool programs has been rolled back.
1. Health Care: The budget funds several new initiatives, such as a directed payment program for children’s hospitals and Martin Luther King Jr. Community Hospital. It also delays the start of a new health care worker minimum wage law and creates a new wellness coach benefit for youth in Medi-Cal, which will expand over several years.
2. Housing and Homelessness: The budget agreement allocates $1 billion for local flexible funding to address homelessness with additional requirements. It also adjusts previous allocations for various homelessness programs that serve vulnerable diverse populations including families involved with the child welfare system, individuals involved in Adult Protective Services, and unhoused individuals who are likely eligible for disability benefits. Separately, the budget agreement maintains over $1 billion for critical affordable housing programs including an additional $500 million for state Low Income Housing Tax Credits, $315 million for the Multifamily Housing Program, and $260 million for the Regional Early Action Program (REAP) 2.0.
3. Higher Education: The University of California (UC) and California State University (CSU) systems will receive base funding increases, but they are subject to a 7.95% operational budget cut. Community colleges, particularly those expanding nursing programs, will benefit from new grant funding under Proposition 98.
4. Trailer Bills: A series of trailer bills passed after the budget enactment implement various provisions, including changes to Medi-Cal funding, new health care initiatives, and reporting requirements for homelessness programs.
5. The 2024 budget demonstrates a balanced approach, using reserves and one-time solutions to avoid deep cuts to essential services, while adjusting funding in response to the state's revenue challenges. It preserves critical investments while delaying or reducing funding in areas like infrastructure and housing.
BUDGET
Key Highlights
18 Read Article Here
REPORT OF ALL VETOED
BILLS HERE
REPORT OF ALL SIGNED
BILLS HERE
CALMATTERS: WHICH OF THESE 2024 CALIFORNIA
BILLS DID GAVIN NEWSOM SIGN INTO LAW?
Photo by Florence Middleton, CalMatters
STAFF REPORT
California Choice Energy Authority
11/19/24
JC
Date:
To:
From:
Item 7:
November 19, 2024
Chair Harris and Authority Members
Jason Caudle, Chief Executive
Consider Approval of Confirmation between California Choice Energy Authority (CalChoice) and NRG Business Marketing LLC ("NRG") for Scheduling Coordinator and Congestion Revenue Rights
Recommendation:
1. Approve the Confirmation between California Choice Energy Authority (CalChoice) and NRG Business Marketing LLC ("NRG") for Scheduling Coordinator and Congestion Revenue Rights for a five-year term beginning January 1, 2025, through December 31, 2029.
2. Authorize the Chief Executive to modify NRG invoice payment term election upon the direction of any CalChoice Community Choice Aggregator (CCA) Member.
3. Authorize the Chief Executive, or his designee, to sign all documents subject to General Counsel approval.
Fiscal Impact:
There is no fiscal impact to CalChoice. The services will be paid for by revenue collected by each member city, and costs have been included in the adopted FY 2024/25 CalChoice Budget.
Background:
On June 30, 2017, NRG and CalChoice executed a 10-year Master Power Purchase and Sale Agreement ("Master Agreement") along with a Confirmation for Scheduling Coordinator (SC) and Congestion Revenue Rights (CRR) Services. Since that time, the services being provided by NRG have been expanded to include not only Lancaster Energy, but also the other seven CalChoice Members. The current Confirmation expires on December 31, 2024.
NRG has proven itself a valuable resource to the CalChoice members, providing exceptional service in meeting the requirements as established in the current Confirmation.
Scheduling Coordinator Services
As Scheduling Coordinator, NRG prepares and submits short-term and long-term load forecasts to the California Independent Operator (CAISO), reviews energy settlements, and provides required reporting. Additionally, NRG, under the terms of this (and the prior) Confirmation, is responsible Item 7
Confirmation between CalChoice and NRG for
Energy Management and Transaction Services
2 for collateral posting with the CAISO for each CalChoice Member. Under the current terms, NRG invoices the CalChoice Members for its CAISO charges on a net 55 day payment schedule. The carrying costs of providing the extended payment terms have increased significantly, resulting in a need to increase the fees. In order to address the impact of the fee increase, NRG is offering two new payment terms, with lower per MWh fees.
These three options that will be available, including the cost, are:
CAISO Invoice Payment Timelines
No Payment
Election/Default
(Net 55 Days)
Monthly Payment
Election
(Net 25 Days)
Weekly
Payment
Election
(Weekly)
Working Capital ($/MWh)* $0.84 $0.42 -
Collateral ($/MWh)* $0.29 $0.29 $0.29
Total New Fee $1.13 $0.71 $0.29
Current SC Fee $0.55 $0.55 $0.55
Per $/MWH change $0.58 $0.16 ($0.26)
Estimated annual cost impacts (change from current fees) to Members of the three options are:
Net 55 Days @
$1.13
Net 25 Days @
$0.71 Weekly @ $0.29
Avg Annual Impact of
Options
$100k - $361k $30k - $100k ($50k) – ($160k)
Annual change in costs dependent on Member agency’s annual load.
CRR Services
There is no change proposed for the new Confirmation for CRR services. CRR Services are charged on a contingent basis based on performance, at 20% of revenue received from CRR auctions and CRR day-ahead settlements, including revenue derived from load migration CRRs.
Staff recommends approval of a five-year term commencing on January 1, 2025, through December 31, 2029. This Confirmation shall renew automatically for a term of one year unless either Party notifies the other Party, not less than ninety (90) days prior to the expiration of the then current term.
Attachment:
Confirmation for Scheduling Coordinator and Congestion Revenue Rights Services between CalChoice and NRG
NBM DRAFT
11/15/2024
[DRAFT: Neither CCEA or NBM will be deemed to have agreed to this Confirmation and will not be bound by any term thereof, unless and until all required approvals have been obtained and authorized representatives of both CCEA and NBM execute final definitive documents, enforceable in accordance with their terms.]
CONFIRMATION FOR SCHEDULING COORDINATOR AND CONGESTION
REVENUE RIGHTS SERVICES
THIS CONFIRMATION FOR SCHEDULING COORDINATOR AND CONGESTION REVENUE RIGHTS SERVICES (this “Confirmation”) dated as of the last dated signature on the signature page hereto (the “Effective Date”) is between NRG Business Marketing LLC, a Delaware limited liability company (“NBM”) and California Choice Energy Authority, a California joint powers authority (“CalChoice” or “CCEA”). Certain public agencies listed on Exhibit A attached hereto are members of CCEA (“Members”). CalChoice and NBM are sometimes referred to herein individually as a “Party” or together as the “Parties.” This Confirmation supplements, forms a part of, and is subject to, the terms of the Master Power Purchase and Sale Agreement, dated as of June 30, 2017 between the Parties, together with the Cover Sheet to the EEI Agreement, and any other annexes thereto (as amended from time to time, the “Master Agreement”) and constitutes a Transaction thereunder. In the event of any inconsistency between a provision of the Master Agreement and a provision of this Confirmation, the provision of this Confirmation shall control. Capitalized terms used in this Confirmation and not otherwise defined will have the respective meanings assigned in the Master Agreement. This Confirmation and the Master Agreement, including any schedules, appendices, exhibits or amendments thereto, shall collectively be referred to as the “Agreement” and will constitute a single agreement between the Parties.
RECITALS:
WHEREAS, NBM and CalChoice desire to set forth the terms and conditions for this Confirmation in which NBM shall provide the Services (as defined below) to CalChoice for the benefit of Members and NBM shall be paid for such Services in accordance with the terms and conditions herein (the “Transaction”);
WHEREAS, the Services shall include one or more of the following: the SC Services and the CRR Services, (each, a “Service” and collectively, the “Services”); and NOW, THEREFORE, in consideration of the mutual covenants and agreements in this Confirmation and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:
1. DEFINITIONS. Any capitalized terms used in this Confirmation but not otherwise defined below shall have the meaning ascribed to such term in the Master Agreement or the CAISO Tariff, as applicable:
“Applicable Law” means any statute, law, treaty, rule, tariff, regulation, ordinance, code, permit, enactment, injunction, order, writ, decision, authorization, judgment, decree or other legal or regulatory determination or restriction by a court or Governmental Authority of competent jurisdiction, or any binding interpretation of the foregoing, as any of them is amended or
NBM DRAFT
10/22/2024
2 supplemented from time to time, that apply to either or both of the Parties, the Project(s), or the terms of the Transaction. For greater clarity, Applicable Law includes the Governing Rules. “Best Efforts” is not a firm commitment by NBM, but rather that it will undertake a good faith, reasonable effort, subject to all external and internal limitations, including, but not limited to, counterparty risk, know your customer requirements, collateral and credit requirements, availability of enabling agreements, then-prevailing market conditions, product availability, volume and liquidity.
“CAISO” means the California Independent System Operator Corporation or the successor organization to the functions thereof.
“CAISO Charges” mean those amounts (other than Imbalance Charges) billed by CAISO and associated with the procurement and delivery at the Delivery Point of any product through the CAISO market to CalChoice as such charges may be adjusted from time to time pursuant to the Tariff. Such charges shall include, but are not limited to, Grid Management Charges and charges associated with Ancillary Services, Unaccounted for Energy, CRRs, Bid Cost Recovery and Neutrality, in each case as defined by the CAISO.
“CAISO CRR Revenues” means the revenue received by, or for the benefit of, Member from CRR Auctions (and whether received by CalChoice or by the Member) and the Day-Ahead Settlement of CRRs (CAISO Charge Code 6700 and 6798), excluding those revenues deriving from CRRs transferred through the CAISO load migration process or attained prior to the Term. “CAISO Documents” means the CAISO Tariff, CAISO Protocols, and CAISO Business Practice Manuals.
“CEC” means the California Energy Commission.
“Change in Law” is as defined in Section 7.
“Collateral Agent” has the meaning in the Security Documents. “Commercially Reasonable Efforts” for the purposes of this Confirmation, “commercially reasonable efforts” or acting in a “commercially reasonable manner” shall not require a Party to undertake extraordinary or unreasonable measures.
“CPUC” means the California Public Utilities Commission. “CRRs” means Congestion Revenue Rights as defined in the Tariff. “CRR Limited Agent” means NBM acting as each respective Member’s limited agent at CAISO, such agency to be solely for the purpose of providing services relating to Members’ CRR positions, and in all other cases the relationship of CCEA and each respective Member, on the one hand, with NBM, on the other hand, as set forth in this Transaction is one of independent contractors.
NBM DRAFT
10/22/2024
3 “CRR Services” has the meaning in Section 2.4(e).
“Customer” means the customers served by a Member pursuant to the Member Program. “Delivery Point” means the SCE Default Load Aggregation Point (DLAP). “Effective Date” has the meaning set forth in the Preamble. “Energy” means electrical energy that is available and flowing at the Delivery Point.
Energy is measured in MWh.
“Exhibits” shall be those certain Exhibits, which are attached hereto and made a part hereof. “FERC” means the Federal Energy Regulatory Commission.
“Governing Rules” means the CAISO Requirements and any other applicable law, tariff, regulation, rules and/or directives of CAISO, CPUC, CEC, NERC, FERC, EPA, ARB, any other Regulatory Agency or any successors thereto, and as amended by such bodies from time to time.
The Parties hereby agree to abide by all Governing Rules and should there be a conflict between such rules and this Transaction, such rules shall govern. “Governmental Authority” means any federal, state, local or municipal government, governmental department, commission, board, bureau, agency, or instrumentality, or any judicial, regulatory or administrative body, or the CAISO or any other transmission authority, having or asserting jurisdiction over a Party or the Transaction. “Imbalance Charge” means any scheduling penalties, imbalance penalties, overpull or unauthorized overrun penalties, operational flow order penalties, cash out charges, banking charges or similar penalties, fees or charges, assessed by, or oversupply credits or payments due with respect to a failure to comply with balance and/or scheduling requirements of any applicable entity, specifically excluding any distribution charges imposed by SCE on the delivery of the Energy hereunder.
“Losses” means the difference between (1) the quantity of Energy delivered by SCE to all Customers prior to application of SCE’s distribution loss factor and (2) the wholesale quantity of Energy delivered by SCE to all Customers as filed by CCEA with CAISO. “Member” has the meaning set forth in the Recitals above. “Member Load” means the wholesale electric load requirements of Member’s Customers, without deduction for Losses. Member Load shall be deemed to include all Customers that have not opted out of the Member Program on any given day during the Term. “Member Program” means the community choice aggregation program operated by CCEA’s Member.
NBM DRAFT
10/22/2024
4 “MEQ” means Monthly CRR Eligible Quantity as defined in the CAISO Tariff. “Monthly Payment Election” has the meaning set forth in Section 2.7(b). “MW” means megawatt.
“MWh” means megawatt-hour.
“Pass-Through Charges” shall have the meaning as set forth in Section 2.6 below. “Prudent Industry Practice” means any of the practices, methods, techniques and standards (including those that would be implemented and followed by a prudent operator of generating facilities similar to the Project(s) in the United States during the relevant time period) that, in the exercise of reasonable judgment in the light of the facts known at the time the decision was made, could reasonably have been expected to accomplish the desired result, giving due regard to manufacturers’ warranties and recommendations, contractual obligations, the requirements or guidance of Governmental Authority, including CAISO, Applicable Laws, the requirements of insurers, good business practices, economy, efficiency, reliability, and safety. Prudent Industry Practice shall not be limited to the optimum practice, method, technique or standard to the exclusion of all others, but rather shall be a range of possible practices, methods, techniques or standards.
“Scheduling Coordinator” or “SC” means an entity certified by the CAISO as qualifying as a Scheduling Coordinator pursuant to the Tariff for the purposes of undertaking the functions specified in “Responsibilities of a Scheduling Coordinator” as set forth in the Tariff. “SC Services” means the forecasting, load balancing, and scheduling coordinating services as described in Sections 2.1, 2.2 and 2.3 below.
“SEQ” means Seasonal CRR Eligible Quantity as defined in the CAISO Tariff. “Services” has the meaning set forth in the Recitals.
“Tariff” means the tariff and protocol provisions, including any current CAISO-published “Operating Procedures” and “Business Practice Manuals,” as amended, supplemented or replaced by CAISO from time to time.
“Term” shall be the period beginning on the Start Date and ending on the End Date. “Third-Party SC” means a third party designated by CCEA to provide the Scheduling Coordinator functions for the benefit of CCEA.
“Third-Party Transaction” shall have the meaning specified in Exhibit C. “Transaction” has the meaning set forth in the Recitals.
NBM DRAFT
10/22/2024
5 “Weekly Payment Election” has the meaning set forth in Section 2.7(a).
2. SERVICES
2.1 SC Services - Forecasting.
a. Short Term Forecasting. NBM prepare and submit short-term load forecasts of Energy and Capacity for terms of less than one year as Member’s Scheduling Coordinator necessary to meet such Member’s energy supply obligations (the “Short-Term Forecast”). The Parties shall mutually agree from time to time on the assumptions and models to be included in the Short-Term Forecast and the Long-Term Forecasts (defined below) prepared hereunder. Such forecasts shall be inclusive of estimated Losses from the Delivery Point to Customers’ meters.
CCEA shall provide settlement quality meter data, resource data and load data as reasonably requested by NBM necessary for the preparation of the forecasts. NBM shall not be liable for any costs or losses incurred by or charged to CCEA or Member as a result of NBM’s forecasting obligations so long as NBM has performed its obligations in accordance with Prudent Industry Practices and the Transaction, if applicable. In the event a Governmental Authority requests clarification of forecasts provided by NBM hereunder or otherwise requires CCEA or Member to substantiate such forecasts, NBM shall in good faith assist CCEA or Member in responding to such request and assist CCEA in defending the reasonableness of such forecasts (such assistance shall exclude payment of any costs or expenses incurred by CCEA or Member in responding to such inquiries).
b. Long Term Forecasting. CCEA shall prepare appropriate long-term load forecasts for Energy and Capacity for Member for terms of one year and greater and NBM will assist and coordinate with CCEA in its preparation of such long-term load forecasts and CCEA shall submit such long-term load forecasts on behalf of Member as required by the CPUC, CEC the CAISO or any other applicable regulatory body, including those required of a CCA (including all updates and revisions, (the “Long-Term Forecast”) and promptly provide NBM with a copy thereof, provided that every ninety (90) days CCEA shall provide NBM with either a new Long-Term Forecast or a statement that no changes to the most recent Long-Term Forecast have occurred. NBM shall have the right to request clarification regarding any change made to the Long-Term Forecast.
2.2 SC Services - Load Balancing. CCEA shall be responsible for and shall pay, and shall reimburse or credit NBM if NBM pays, all Imbalance Charges resulting from the performance of Services or from the purchase or sale of any product transacted under and in accordance with this Confirmation.
2.3 SC Services - Scheduling. NBM shall perform the scheduling and bidding for loads of all Customers served by Member. NBM shall perform the scheduling and bidding services in accordance with the Tariff, protocols and business practices. NBM shall establish a separate Scheduling Coordinator identification for each CCEA Member to separate CAISO charges related to providing energy supply services to CCEA’s Members, and NBM shall be responsible for any collateral postings required by the CAISO in conjunction with scheduling the Member Load. a. Day Ahead Forecasting. NBM shall submit day-ahead forecasts of Member
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6 Load on a daily basis (“Day-Ahead Forecasts”), based on a methodology to be agreed upon between CCEA and NBM. Day-Ahead Forecasts shall be based upon Customer information provided to NBM, historical load patterns, and NBM weather forecasts. NBM shall provide CCEA with daily Day-Ahead Forecasts upon the prior written request of CCEA, and to implement reasonable modifications to daily forecasting methodology. Variances between Day-Ahead Forecast and the actual Member Load will be settled at CAISO real-time prices as reflected in the CAISO settlements statement.
b. Monthly Summary Report / Filing. On or before the fifteenth (15th) day of each calendar month (or the next Business Day thereafter if the fifteenth (15th) day of the calendar month is not a Business Day) following the end of each month during the Term, NBM will e-mail to CCEA electronic reports summarizing the activities during the prior month, which reports shall be in form and substance reasonably satisfactory to CCEA and NBM (the “Monthly Report”). The monthly reports will be supported by appropriate documentation. NBM shall file with CAISO all schedules and meter data reports required to be filed by the Scheduling Coordinator for Member. c. NBM Excused. In addition to any excuses for performance otherwise expressly provided for in the Agreement, NBM shall be excused from performing its obligations under this Section 2 to the extent that (i) any failure by a Member to perform any of its obligations hereunder, delays or interferes with NBM performing its obligations under this Section 2 and (ii) the occurrence of disruptions of the CAISO system that prohibit NBM from meeting its scheduling obligations hereunder, including a disruption that prohibits NBM from making hourly changes during scheduling periods.
d. Member Facilities. At CCEA’s request and upon thirty (30) days’ written notice provided by CCEA, NBM shall schedule or accept Inter-SC Trades from Member facilities, as a Scheduling Coordinator, and directly pass through the financial benefits of such schedules to Member. NBM shall not be obligated to act as Scheduling Coordinator for generating facilities that are Member’s facilities except under a separate agreement, which shall be subject to agreement of the Parties. Unless the Parties agree otherwise, the Member facilities shall not displace energy related products or wholesale hedge positions entered into by NBM on behalf of Member Load requirements. Any incremental costs and expenses incurred by NBM in performing its obligations under this Section 2.3(d) shall be billed to Member as Pass-Through Charges. NBM shall use Commercially Reasonable Efforts to minimize any such incremental costs and expenses.
2.4 CRR Services - Congestion Revenue Rights.
a. NBM shall provide professional services related to each respective Member’s CAISO CRR allocations during the Term as outlined herein. During the Term, neither CCEA nor the respective Members shall authorize or designate any other party to undertake any activity related to the management of the respective Member’s CAISO CRR allocation or the management of the Member’s CAISO CRR portal, and shall not revoke NBM’s authorization to act as Member’s CAISO CRR service provider, except as provided herein. b. As soon as practicable following the Effective Date, NBM and CCEA (and each respective Member as necessary) shall take such action provide NBM with access to each
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7 respective Member’s CRR account and to authorize NBM to act as the CRR Limited Agent. c. All liabilities created for the benefit, burden or account of CCEA and each respective Member pursuant to NBM’s performance of the CRR Services in accordance with the terms and conditions of this Transaction shall be the liabilities of CCEA and each respective Member.
d. Except to the extent expressly authorized under this Transaction for NBM’s services as CRR Limited Agent in connection with the CRR Services, no Party shall be an agent, partner, joint venturer, or legal representative of any other Party for any purpose whatsoever, and no Party is authorized to assume or create any obligation, liability, or responsibility, expressed or implied, on behalf of or in the name of any other Party or to bind any other Party to any third party in any manner whatsoever. The relationship of the Parties is that of an independent contractor.
Any provision of this Transaction that appears to give CCEA or a respective Member a measure of control over the details of the CRR Services shall be deemed to mean that NBM shall follow the provisions hereof in order to accomplish the desires of CCEA and each respective Member.
Except as expressly stated in this Transaction, neither of the Parties shall have any separate obligations or duties, including without limitation any fiduciary duties or other implied duties.
CCEA and Member hereby agree that each is sophisticated and capable of assessing whether to enter into and maintain the relationship formed by this Transaction, as well as the risks of its participation in the CAISO market.
e. NBM shall perform the following services as outlined below (the “CRR Services”) under this Transaction in accordance with the Governing Rules and applicable law:
1) Initial Setup: NBM shall endorse NBM CAISO Representatives in the CAISO’s Access and Identity Management module.
2) CRR Forecast and Historical Load Submissions: If the CCEA timely provides the CRR forecasts and historical load submissions for a Member in accordance with Section 2.3), NBM will upload forecast and historical hourly load files in XML format to the CAISO CRR portal as required by the CAISO during the corresponding load submission window.
3) CRR Allocations: NBM will assess CRR allocation limits (MEQs/SEQs) and will analyze CAISO system conditions to create a request for a portfolio of CRRs in the monthly and annual allocation processes for the applicable Member. NBM will submit its recommendations to CCEA for input, prior to submitting a request for CRRs to CAISO.
4) CRR Auctions: To monetize a Member’s allocation of CRRs, NBM will assess CRR intrinsic value to create economic offers for the applicable CRR auction and submit those offers to Member for approval. Once the offer(s) are approved by CCEA, or if NBM does not receive any objections from CCEA by 11:00 a.m. PPT on the date of the applicable CRR auction deadlines, NBM will offer the CRRs into the applicable CRR auctions. CCEA and Member understand that any CRRs that do not clear an auction will automatically be settled by CAISO against day-ahead
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8 congestion.
5) Settlement and Reporting: NBM will provide a quarterly report to CCEA for the applicable Member detailing CAISO settlements data, including, the CRRs allocated, the auction revenue, and the DAM settlement revenue. 6) Governing Rule Changes: NBM shall use Commercially Reasonable Efforts to communicate to CCEA any CAISO directives and Governing Rule changes materially affecting CRRs of which NBM becomes aware.
7) Discrepancies: NBM shall use Commercially Reasonable Efforts to identify and resolve discrepancies between revenues reported by NBM to CCEA and revenues reported on the CAISO settlement statements. Fee(s) due to NBM will be based on the CAISO settlement statement values and will be resettled as may be required from time to time due to, without limitation, changes to calculations or settlements by CAISO.
8) Performance: Provided (i) CCEA approves or does not object to the recommendations of NBM set forth in Sections 2.4 e. 3) and 4) and (ii) there has been no material Change in Law related to CRRs that negatively impacts CRR pricing for the respective calendar year during the Term, for each calendar year during the Term, if the aggregate net CAISO CRR Revenue received by, or for the benefit of, a Member from the CAISO, whether received by CCEA or by the Member (excluding those revenues and charges (a) deriving from CRRs transferred through the CAISO load migration process or attained prior to the Term or (b) that result from any act or omission of CCEA or a Member that was not directed by NBM pursuant to the Services) is negative, then NBM will pay CCEA for the benefit of that Member, the difference between such negative aggregate net CAISO CRR Revenue and zero, thereby ensuring that such Member sustains no net losses of CAISO CRR Revenues on a calendar year basis. Such payment, if any, shall be paid on or before the monthly due date in the month of January following the calendar year.
2.5 Obligations of Member and CCEA.
a. Information for Scheduling. NBM will be communicating information that NBM receives from CCEA regarding Member to the CAISO. CCEA AGREES THAT IT WILL INDEMNIFY AND HOLD HARMLESS NBM AND NBM’S AFFILIATES WITH
RESPECT TO ANY CHARGES, FINES OR PENALTIES THAT MAY BE ASSESSED
AGAINST NBM BY THE CAISO FOR INACCURATE INFORMATION THAT NBM
RECEIVES IN WRITING (INCLUDING ELECTRONIC COMMUNICATIONS) FROM CCEA OR MEMBER; PROVIDED, HOWEVER, THAT EXCEPT FOR THE
FOREGOING CHARGES, FINES OR PENALTIES, CCEA SHALL NOT BE LIABLE
FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, OR LOST PROFITS OF NBM. CCEA acknowledges that NBM will be requesting that CCEA confirm the accuracy and completeness of the information and consistency with Member’s operational plans and that NBM may refuse to provide the SC Services at any time
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9 NBM does not receive that confirmation, and NBM shall have no liability hereunder for such refusal to provide the SC Services.
b. Meter Data. Member shall be required to establish its ability to perform, or have performed by a third party on Member’s behalf, all metering requirements necessary for NBM to comply with the requirements of the Tariff in connection with providing services. CCEA shall cause Member, or its designee, to actively intervene with third parties, as necessary and appropriate, on NBM’s behalf to ensure that NBM has all reasonable access to relevant meters, associated Assets and facilities and meter data as is necessary for NBM to comply with the requirements of the Tariff. CCEA shall, on behalf of Member, submit to the CAISO, or cause to be submitted to the CAISO, any meter data required by the CAISO related to Member’s schedules consistent with the CAISO’s Settlement and Billing Protocol and Metering Protocol. Member shall comply with the CAISO’s annual meter data quality audit. c. Contact List. CCEA shall provide NBM with a 24-hour emergency contact list.
d. Information. CCEA and Member shall timely provide any information as reasonably required by NBM to perform the SC Services.
2.6 Pass-Through Charges. NBM shall be responsible for bidding and scheduling the loads of Member in accordance with Prudent Utility Practice and Applicable Law, including the Tariff. NBM shall pass through to CCEA all other costs or credits included in the CAISO invoice and charged or credited to NBM in serving as CCEA’s Scheduling Coordinator for Member that are not otherwise specified in the terms and conditions as provided herein, including but not limited to: all CAISO Charges, Imbalance Charges, CRRs, day-ahead energy prices, and real-time energy prices associated with Energy volumes above or below the energy contract quantities scheduled by NBM on behalf of Member, including volumes associated with Inter-SC Trades from Member Facilities (“Pass-Through Charges”). The Parties agree and acknowledge that Member’s Customer will remain responsible for payment of delivery charges for transmission, distribution, public goods and other non-by-passable surcharges charged directly to such Customer by SCE. Upon reasonable advance notice, CCEA may request a review of the relevant records of NBM to confirm the accuracy of any costs or credits passed-through to Member hereunder. NBM shall maintain at all times and use Commercially Reasonable Efforts to provide such records for CCEA’s and Member’s review during normal business hours and copies of such records at Member’s cost and subject to any applicable confidentiality restrictions.
2.7 CAISO Invoice Payment Elections.
a. Weekly Payments. Each Member shall indicate on the Acknowledgment page if it would like to be invoiced on a monthly basis (i.e., net 25) or make weekly CAISO payments. If no election is made, the Member shall remain at the current default payment terms (i.e., net 55). If a Member elects weekly payments (the “Weekly Payment Election”), after a transition period estimated to be one to two months (as reasonably determined by NBM), NBM will not apply the “Working Capital” Charges” specified on Exhibit B, but will apply the “Collateral” Charges specified on Exhibit B, to the payments obligations in respect of such
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10 Member, so long as and to the extent that CCEA is timely making the Weekly CAISO Payments (as defined below). For each Member that has made the Weekly Payment Election, NBM will generally receive each set of weekly CAISO invoices on Wednesday, send those invoices to CCEA for the applicable Member on the same day as received if received on a Business Day. The CCEA shall make, or cause to be made, the payments to the CAISO by the following Monday (or next Business Day, if the due date is not a Business Day) each week (collectively, the “Weekly CAISO Payments”). These Weekly CAISO Payments will be, to the extent timely made to CAISO, reflected as credits on the monthly invoice.
b. Monthly Payments. Each Member shall indicate on the Acknowledgment page if it would like to be invoiced on a monthly basis (i.e., net 25) or make weekly CAISO payments. If no election is made, the Member shall remain at the current default payment terms (i.e., net 55). If a Member elects monthly payments (the “Monthly Payment Election”), after a transition period estimated to be one to two months (as reasonably determined by NBM), NBM will apply the “Working Capital and Collateral Charges” specified on Exhibit B to the payments obligations in respect of such Member, so long as and to the extent that CCEA is timely making the monthly CAISO payments.
c. Third Party Costs. On or before the fifteenth (15th) day of each calendar month (or the next Business Day thereafter if the fifteenth (15th) day of the month is not a Business Day), NBM shall assemble all third party charges incurred for services performed by NBM during the previous month related to Services for inclusion in the Monthly Report. If actual third party charges are not available for inclusion in the Monthly Report, NBM may reasonably estimate such charges, with appropriate invoice adjustments to be made when actual charges are known and available.
d. CAISO Settlements. On or before the fifteenth (15th) day of each calendar month (or the next Business Day thereafter if the fifteenth (15th) day of the month is not a Business Day), NBM shall provide CCEA with an estimate of the amount of CAISO settlement costs or other Pass-Through Charges attributable to each Member under this Confirmation for the previous calendar month. If the respective Member has made the Weekly Payment Election, NBM will credit the CAISO charges on the invoices. If the Member has not made the Weekly Payment Election, NBM shall pay any settlement costs incurred by NBM on behalf of Member and incorporated within invoices from the CAISO on or before the due date in accordance with the Tariff, and will include such amounts in the Monthly Report. In addition, for each Member that has not made the Weekly Payment Election, the additional “Working Capital and Collateral Charges” specified on Exhibit B shall be applied to the Member’s settlement costs. e. Payment Information. On or before the fifteenth (15th) day of each calendar month (or the next Business Day thereafter if the fifteenth (15th) day of the calendar month is not a Business Day), NBM shall deliver to CCEA a statement, which may be based on reasonably estimated amounts if actual amounts are not available, in electronic form and in writing setting forth amounts due to either CCEA or NBM. NBM and CCEA shall net all amounts due between CCEA and NBM arising under this Confirmation and any Transaction Confirmations entered into pursuant to Exhibit C on a Member by Member basis pursuant to Section 6.4 of the Master Agreement.
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11 f. Monthly Invoice Timeline. NBM agrees to use Commercially Reasonable Efforts to deliver each monthly invoice to CCEA not later than the fifteenth (15th) day of each calendar month for the previous calendar month, provided that if such day is not a Business Day, then such invoice will be delivered on the next Business Day that occurs after the fifteenth (15th) day of the calendar month. The Parties hereby agree that all invoices under this Confirmation shall be due and payable on the twenty-third (23rd) or twenty-fifth (25th) day of the calendar month (dependent on the CCEA’s sweep of the lockbox for the respective Member) in which NBM delivered such invoice, provided that if such day is not a Business Day, then such invoice will be due and payable on the next Business Day that occurs after the respective, twenty-third (23rd) or twenty-fifth (25th) day of the calendar month.
g. Disputes. NBM shall use Commercially Reasonable Efforts to engage the CAISO dispute process on CCEA’s behalf for any erroneous charges identified by NBM or CCEA in the CAISO settlements.
2.8 No Dedication of Facilities. Neither the Services performed by NBM nor either Party’s actions or inactions under this Section 2 shall constitute or construed as a dedication of the systems or assets, or any portion thereof, of either Party to the public or to other Party.
2.9 Control. CCEA agrees, upon the request of NBM, to submit a letter of concurrence in support of any affirmative statement by NBM that this contractual arrangement does not transfer “ownership or control of generation capacity” from CCEA to NBM, as the term “ownership or control of generation capacity” is used in 18 CFR Section 35.42.
2.10 Terminating NBM’s Designation as Scheduling Coordinator. CCEA may revoke NBM’s authorization to act as Scheduling Coordinator as to any or all Members and designate a Third-Party SC if NBM fails to perform any material covenant or obligation as set forth herein and such failure is not remedied within thirty (30) days of receipt of written notice. In addition, in its sole discretion, upon one-hundred eighty (180) days’ prior written notice, CCEA may revoke NBM’s authorization to act as Scheduling Coordinator as to any or all Members and designate a Third-Party SC. If CCEA designates a Third Party SC in accordance with this provision, the Parties agree to take any other action necessary to terminate the designation of NBM as Scheduling Coordinator, including NBM submitting a letter to the CAISO resigning as Scheduling Coordinator under this Transaction and amending this Transaction to reflect such termination.
CCEA shall give NBM written notice of the designation of the Third-Party SC at least ten (10) Business Days before the Third- Party SC assumes Scheduling Coordinator duties hereunder, and NBM shall be entitled to rely on such designation until it is revoked or a new Third-Party SC is appointed by CCEA upon similar written notice. CCEA shall be fully responsible for all acts and omissions of Third-Party SC and for all cost, charges and liabilities incurred by Third-Party SC to the same extent that CCEA would be responsible under this Transaction for such acts, omissions, costs, charges and liabilities if taken, omitted or incurred by CCEA directly.
3. Term. This Confirmation shall be in full force and effect as of the Effective Date. The terms set forth herein shall apply from the Start Date through the End Date, which entire period will comprise the Term. The Term shall renew automatically for a term of one year unless either
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12 Party notifies the other Party, not less than ninety (90) days prior to the expiration of the then current Term, that such Party elects to terminate the Agreement effective as of the expiration of the then current Term. Any such renewal term shall be considered as part of the Term for purposes hereof. This Confirmation shall terminate on the date on which both Parties have completed the performance of their obligations hereunder, unless earlier terminated pursuant to the terms hereof.
Start Date: End Date:
January 1, 2025 December 31, 2029
4. PRICING. CCEA shall be obligated to pay to NBM the fees under this Transaction for the SC Services and the CRR Services, which shall be in addition to the Pass-Through Charges, as specified in Section 2.6 above (the “Scheduling Fees”). The Scheduling Fees amounts, if any, are as more fully described in Exhibit B attached hereto.
5. COMPLIANCE REPORTING. In consideration of applicable compliance obligations, CCEA shall be responsible for submitting compliance reports, including but not limited to California RPS and Carbon, to the CPUC and/or other Governmental Authorities on behalf of Member and will require resource information, electronic tagging information, and other documentation to be provided by NBM. NBM shall provide all reasonable information to CCEA necessary for CCEA to timely comply with periodic compliance reporting requirements and as otherwise required by Applicable Law with respect to any Services provided to its Member.
6. LOAD SERVED. CCEA shall provide to NBM a daily report of Member’s Customer sales based on the meter data reported by SCE, and CCEA shall submit, or cause to be submitted, settlement quality meter data to the CAISO. NBM shall prepare invoices to the CCEA based on such daily reports.
7. CHANGE IN LAW. If due to any action by the CPUC or any Governmental Authority, including the CAISO, or any change in Applicable Law (a “Change in Law”) occurring after this Transaction Date that results in material changes to Member’s or NBM’s obligations with regard to the Services provided hereunder so that the implementation of this Confirmation becomes impossible or impracticable, the Parties shall work in good faith to try and revise this Confirmation so that the Parties can perform their obligations regarding the Services provided hereunder in order to maintain the original intent of the Parties under this Confirmation. In the event the Parties cannot reach agreement on any such amendments to this Confirmation within 60 days following the Change in Law, to the extent practicable and lawful, NBM shall perform its obligations hereunder with regard to any Services hereunder, including compliance with California RPS obligations, in accordance with the Applicable Law immediately prior to the Change in Law; provided, however, that notwithstanding the foregoing or anything to the contrary herein, NBM shall not be obligated to perform any obligation hereunder to the extent that doing so would cause NBM to be materially adversely affected.
8. MEMBER’S REPRESENTATION REGARDING OPERATIONAL PLANS. By signing the acknowledgement below, Member acknowledges that NBM will be communicating information that NBM receives from CCEA regarding Member to the CAISO. Member
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13 acknowledges that NBM will not be responsible for costs or penalties due to information provided by CCEA that is not true, complete and consistent with Member’s operational plans to the best knowledge of the person providing the information. Member acknowledges that NBM will be requesting that Member (through CCEA) confirm (i) the accuracy and completeness of the information; (ii) consistency with Member’s operational plans and (iii) compliance with the CAISO and FERC rules or regulations, and Member agrees that NBM will not be responsible for Member or CCEA’s failure to provide such information. Member also acknowledges its obligation to indemnify and hold CCEA harmless from any liability incurred by CCEA pursuant to Section
2.5(a) above that is caused by Member’s failure to provide true, accurate, complete and timely information to CCEA.
9. STANDARD OF CARE AND GOOD FAITH. When performing its obligations to provide Services hereunder to CCEA, NBM shall act in good faith and shall perform all work in a manner consistent with the provision of similar services to other load serving entities in the California markets.
10. SEVERABILITY. The duties, obligations and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Confirmation shall ever be construed to create an association, trust, partnership duty, obligation or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Confirmation.
11. AUTHORIZED REPRESENTATIVES. Each Party shall designate in writing one or more persons as its authorized representative(s) to act on its behalf in carrying out the provisions of this Confirmation. The Parties shall be bound by the oral and written communications, directions, requests, decisions and other actions taken by their respective authorized representative.
12. ADDITIONAL PROVISIONS. NBM, CCEA and each Member agrees and acknowledges respectively that this Confirmation is subject to such Member’s respective Security Agreement, as listed in Exhibit A-1.
13. CONFIDENTIALITY. Notwithstanding any provision on confidentiality, restriction on use or other provision in this Transaction, CCEA and Members acknowledge and agree that (i) information and data arising from, or relating CCEA and Member’s information (“CCEA/Member Information”) may be comingled with other information and data, in or with respect to, NBM, its Affiliates or any other Person or load-serving entity for which NBM or its Affiliates are providing services or that are engaged in market activity, including, without limitation, information and data arising from, or relating to CRRs (collectively, “NBM Information”), (ii) NBM and its Affiliates may use CCEA/Member Information in the course of any of their activities in CAISO’s market or transaction for their own account or the account, load or generation of another Person for which either is providing services or is engaged in market activity, (iii) NBM and its Affiliates shall not be required to give priority or special consideration to the CCEA/Member Information when managing or engaging in any market activity for its own account, or the account or market activity of another Person and (iv) NBM and its Affiliates shall have no obligation to provide to CCEA, Member and its Affiliates any NBM Information (whether or not such NBM Information may be included in, or form a part of, CCEA/Member Information).
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14 14. NON-EXCLUSIVE RELATIONSHIP.
a. NBM or its Affiliates may transact with other Persons, including the Affiliates of CCEA and Members and their shareholders or members, and may also be parties to, own, engage in, and possess interests in, other agreements, assets, businesses, activities, ventures, enterprises, transactions and investments of any and every type and description (together the “Activities”), independently or with others, that may be in competition with NBM or Members or their Affiliates, with no duty or obligation (express, implied, fiduciary or otherwise) to (i) refrain from engaging in such Activities, (ii) offer the right to participate in such Activities to CCEA, Members, or their Affiliates, members, shareholders or subsidiaries, or (iii) account to, or to share the results or profits of such Activities with, CCEA, Members, or their Affiliates, members, shareholders or subsidiaries, and any doctrines of non-competition, “company opportunity” or similar doctrines are hereby expressly disclaimed.
b. CCEA and Members acknowledge and agree that NBM and its Affiliates (i) are active participants in the commodities and derivatives markets and may, from time to time, transact with counterparties or pursue trading or hedging strategies in connection with its business that are related or unrelated to this Transaction, and that such transactions or trading or hedging strategies may be in competition with, or different from those of CCEA, Members or their Affiliates are pursuing directly or indirectly in this Transaction or otherwise, (ii) have no fiduciary or trust duties or obligations of any nature with respect to CCEA, Members or their Affiliates in performing its obligations under this Transaction, (iii) may bid, offer, enter into transactions or otherwise buy or sell for its own account or the account of others products, commodities or derivatives and do so on terms or at prices or costs that are more favorable than the prices or costs charged or assessed on CCEA, Members or their Affiliates directly or indirectly pursuant to this Transaction, or (iv) provide CRR or other services for Persons other than CCEA or Members, including for their own account, and engage in other transactions, including trading or selling products, commodities and derivatives. Nothing in this Transaction is to be construed to prevent NBM or its Affiliates in any way from managing CRRs for a third-party, purchasing, selling or otherwise transacting in any product, commodity or derivative for its or their own account or for the account of others, whether prior to, simultaneously with, or subsequent to the performance of this Transaction or a transaction with CCEA, Member or their Affiliates. Nothing in this Transaction will be construed to limit NBM’s operations in any geographic region or to require that NBM favor the interests of CCEA or Members over the interests of NBM, its Affiliates or any other Person.
15. FORWARD CONTRACT; NO UTILITY. The Master Agreement and this Transaction constitute “forward contracts” within the meaning of the United States Bankruptcy Code (the “Code”); (a) each Party is a “forward contract merchant” within the meaning of the Code with respect to any Transactions that constitute “forward contracts”; (b) the Master Agreement is a “master netting agreement” for purposes of the Code; (c) each Party is a “master netting agreement participant” for purposes of the Code; (d) all payments made or to be made on a Party’s behalf pursuant to this Transaction or the Master Agreement, including the application by a party of credit support to any amounts due and owing to such party, constitute “settlement payments” within the meaning of the Code; (e) all transfers of credit support by a Party or on its behalf constitute “margin payments” within the meaning of the Code; and (f) each Party’s termination rights under the Master
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15 Agreement constitute a “contractual right to liquidate, terminate or accelerate” or “contractual right to liquidate, terminate, accelerate, or offset under a master netting agreement and across contracts” the Transactions within the meaning of the Code. CCEA acknowledges and agrees that (a) the energy purchases and sales between the Parties contemplated hereunder and the Services provided hereunder constitute a single-integrated Transaction and shall be treated as such and (b) NBM would not have agreed to provide the Services contemplated hereunder on the terms set forth in this Transaction Confirmation separate and apart from the terms of the Energy purchases and sales between the Parties as set forth in this Transaction Confirmation. As such, notwithstanding anything to the contrary, NBM’s obligation to provide such Services shall terminate upon the earlier to occur of the expiration of the Term or an Early Termination Date (or effective designation of an Early Termination Date) or the earliest time possible in accordance with any law, rule, regulation, statute, ordinance, court order, tariff or practice, or as otherwise agreed to by the Parties resulting from an Event of Default. Furthermore, CCEA agrees that NBM is not a “utility” as such term is used in 11 U.S.C. Section 366, and each Party agrees to waive and not to assert the applicability of the provisions of 11 U.S.C. Section 366 in any bankruptcy proceeding, and further agrees that NBM is not a provider of last resort.
16. NO RECOURSE. The following sentence shall be added to Section 7.1 of the Master Agreement at the end thereof:
“THE PARTIES EXPRESSLY ACKNOWLEDGE AND AGREE THAT NOTWITHSTANDING
ANYTHING TO THE CONTRARY IN THIS CONFIRMATION, NBM SHALL NOT BE
LIABLE TO ANY MEMBER, AND NO MEMBER MAY MAKE ANY CLAIMS AGAINST NBM, FOR ACTS OR OMISSIONS ARISING OUT OF NBM’s EXECUTION AND
PERFORMANCE OF THIS CONFIRMATION, REGARDLESS OF NATURE OF THE CLAIM.”
17. WRITTEN AGREEMENT. Notwithstanding Section 2.1 of the Master Agreement, this Confirmation shall not be binding on either Party unless each Party has caused the Confirmation to be executed by its representative.
[signature pages follow]
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16 This Confirmation shall become effective upon the execution by both CCEA and NBM.
This Confirmation is subject to the Exhibits identified below and that are attached hereto:
Exhibit A – CCEA Members
Exhibit A-1 – Member Acknowledgment of Security Agreement Exhibit B Scheduling Fees
IN WITNESS WHEREOF, the Parties have signed this Confirmation effective as of the Effective Date.
NRG BUSINESS MARKETING LLC CALIFORNIA CHOICE ENERGY
AUTHORITY, a California joint powers
authority
Sign: Sign:
Print: Print:
Title: Title
Date: Date:
Approved as to form:
Sign:
Print:
Title
Date:
Acknowledgment of Member to Confirmation dated _________ __, 2024 pursuant to the Master Power Purchase and Sale Agreement between NRG Business Marketing LLC and California Choice Energy Authority, a California joint powers authority, dated as of June 30, 2017, as amended from time to time.
Acknowledged by Member:
☐ Member elects the Weekly Payment Election pursuant to Section 2.7(a). -OR-
☐ Member elects the Monthly Payment Election pursuant to Section 2.7(b). [If neither is checked, neither election applies, and the Member will remain at the current default payment terms reflected by the “No Payment Election/Default” column below].
CAISO Invoice Payment Timelines
No Payment
Election/Default
(Net 55 Days)
Monthly
Payment Election
(Net 25 Days)
Weekly
Payment
Election
(Weekly)
Working Capital
($/MWh)*
$0.84 $0.42 -
Collateral ($/MWh)* $0.29 $0.29 $0.29
* Charge is based on Member load (as reported to the CAISO in the Market Results Interface) for which NBM is providing SC Services under this Confirmation, inclusive of losses.
TOWN OF APPLE VALLEY, a California municipal
corporation and general law city d/b/a Apple Valley Choice Energy Sign:
Print:
Title:
Date:
Acknowledgment of Member to Confirmation dated _________ __, 2024 pursuant to the Master Power Purchase and Sale Agreement between NRG Business Marketing LLC and California Choice Energy Authority, a California joint powers authority, dated as of June 30, 2017, as amended from time to time.
Acknowledged by Member:
☐ Member elects the Weekly Payment Election pursuant to Section 2.7(a). -OR-
☐ Member elects the Monthly Payment Election pursuant to Section 2.7(b). [If neither is checked, neither election applies, and the Member will remain at the current default payment terms reflected by the “No Payment Election/Default” column below].
CAISO Invoice Payment Timelines
No Payment
Election/Default
(Net 55 Days)
Monthly
Payment Election
(Net 25 Days)
Weekly
Payment
Election
(Weekly)
Working Capital
($/MWh)*
$0.84 $0.42 -
Collateral ($/MWh)* $0.29 $0.29 $0.29
* Charge is based on Member load (as reported to the CAISO in the Market Results Interface) for which NBM is providing SC Services under this Confirmation, inclusive of losses.
CITY OF LANCASTER, a California municipal corporation
and charter city d/b/a Lancaster Energy
Sign:
Print:
Title:
Date:
Acknowledgment of Member to Confirmation dated _________ __, 2024 pursuant to the Master Power Purchase and Sale Agreement between NRG Business Marketing LLC and California Choice Energy Authority, a California joint powers authority, dated as of June 30, 2017, as amended from time to time.
Acknowledged by Member:
☐ Member elects the Weekly Payment Election pursuant to Section 2.7(a). -OR-
☐ Member elects the Monthly Payment Election pursuant to Section 2.7(b). [If neither is checked, neither election applies, and the Member will remain at the current default payment terms reflected by the “No Payment Election/Default” column below].
CAISO Invoice Payment Timelines
No Payment
Election/Default
(Net 55 Days)
Monthly
Payment Election
(Net 25 Days)
Weekly
Payment
Election
(Weekly)
Working Capital
($/MWh)*
$0.84 $0.42 -
Collateral ($/MWh)* $0.29 $0.29 $0.29
* Charge is based on Member load (as reported to the CAISO in the Market Results Interface) for which NBM is providing SC Services under this Confirmation, inclusive of losses.
CITY OF PALMDALE, a California municipal corporation
and charter city d/b/a Energy for Palmdale’s Independent Choice Sign:
Print:
Title:
Date:
Acknowledgment of Member to Confirmation dated _________ __, 2024 pursuant to the Master Power Purchase and Sale Agreement between NRG Business Marketing LLC and California Choice Energy Authority, a California joint powers authority, dated as of June 30, 2017, as amended from time to time.
Acknowledged by Member:
☐ Member elects the Weekly Payment Election pursuant to Section 2.7(a). -OR-
☐ Member elects the Monthly Payment Election pursuant to Section 2.7(b). [If neither is checked, neither election applies, and the Member will remain at the current default payment terms reflected by the “No Payment Election/Default” column below].
CAISO Invoice Payment Timelines
No Payment
Election/Default
(Net 55 Days)
Monthly
Payment Election
(Net 25 Days)
Weekly
Payment
Election
(Weekly)
Working Capital
($/MWh)*
$0.84 $0.42 -
Collateral ($/MWh)* $0.29 $0.29 $0.29
* Charge is based on Member load (as reported to the CAISO in the Market Results Interface) for which NBM is providing SC Services under this Confirmation, inclusive of losses.
CITY OF PICO RIVERA, a California municipal corporation and general law city d/b/a Pico Rivera Innovative Municipal Energy Sign:
Print:
Title:
Date:
Acknowledgment of Member to Confirmation dated _________ __, 2024 pursuant to the Master Power Purchase and Sale Agreement between NRG Business Marketing LLC and California Choice Energy Authority, a California joint powers authority, dated as of June 30, 2017, as amended from time to time.
Acknowledged by Member:
☐ Member elects the Weekly Payment Election pursuant to Section 2.7(a). -OR-
☐ Member elects the Monthly Payment Election pursuant to Section 2.7(b). [If neither is checked, neither election applies, and the Member will remain at the current default payment terms reflected by the “No Payment Election/Default” column below].
CAISO Invoice Payment Timelines
No Payment
Election/Default
(Net 55 Days)
Monthly
Payment Election
(Net 25 Days)
Weekly
Payment
Election
(Weekly)
Working Capital
($/MWh)*
$0.84 $0.42 -
Collateral ($/MWh)* $0.29 $0.29 $0.29
* Charge is based on Member load (as reported to the CAISO in the Market Results Interface) for which NBM is providing SC Services under this Confirmation, inclusive of losses.
CITY OF POMONA, a California municipal corporation
and charter city b/b/a Pomona Choice Energy
Sign:
Print:
Title:
Date:
Acknowledgment of Member to Confirmation dated _________ __, 2024 pursuant to the Master Power Purchase and Sale Agreement between NRG Business Marketing LLC and California Choice Energy Authority, a California joint powers authority, dated as of June 30, 2017, as amended from time to time.
Acknowledged by Member:
☐ Member elects the Weekly Payment Election pursuant to Section 2.7(a). -OR-
☐ Member elects the Monthly Payment Election pursuant to Section 2.7(b). [If neither is checked, neither election applies, and the Member will remain at the current default payment terms reflected by the “No Payment Election/Default” column below].
CAISO Invoice Payment Timelines
No Payment
Election/Default
(Net 55 Days)
Monthly
Payment Election
(Net 25 Days)
Weekly
Payment
Election
(Weekly)
Working Capital
($/MWh)*
$0.84 $0.42 -
Collateral ($/MWh)* $0.29 $0.29 $0.29
* Charge is based on Member load (as reported to the CAISO in the Market Results Interface) for which NBM is providing SC Services under this Confirmation, inclusive of losses.
CITY OF RANCHO MIRAGE, a California municipal corporation and charter city d/b/a Rancho Mirage Energy Authority
Sign:
Print:
Title:
Date:
Exhibit C - 1
Acknowledgment of Member to Confirmation dated _________ __, 2024 pursuant to the Master Power Purchase and Sale Agreement between NRG Business Marketing LLC and California Choice Energy Authority, a California joint powers authority, dated as of June 30, 2017, as amended from time to time.
Acknowledged by Member:
☐ Member elects the Weekly Payment Election pursuant to Section 2.7(a). -OR-
☐ Member elects the Monthly Payment Election pursuant to Section 2.7(b). [If neither is checked, neither election applies, and the Member will remain at the current default payment terms reflected by the “No Payment Election/Default” column below].
CAISO Invoice Payment Timelines
No Payment
Election/Default
(Net 55 Days)
Monthly
Payment Election
(Net 25 Days)
Weekly
Payment
Election
(Weekly)
Working Capital
($/MWh)*
$0.84 $0.42 -
Collateral ($/MWh)* $0.29 $0.29 $0.29
* Charge is based on Member load (as reported to the CAISO in the Market Results Interface) for which NBM is providing SC Services under this Confirmation, inclusive of losses.
CITY OF SAN JACINTO, a California municipal corporation d/b/a San Jacinto Power
Sign:
Print:
Title:
Date:
Exhibit C - 1
Acknowledgment of Member to Confirmation dated _________ __, 2024 pursuant to the Master Power Purchase and Sale Agreement between NRG Business Marketing LLC and California Choice Energy Authority, a California joint powers authority, dated as of June 30, 2017, as amended from time to time.
Acknowledged by Member:
☐ Member elects the Weekly Payment Election pursuant to Section 2.7(a). -OR-
☐ Member elects the Monthly Payment Election pursuant to Section 2.7(b). [If neither is checked, neither election applies, and the Member will remain at the current default payment terms reflected by the “No Payment Election/Default” column below].
CAISO Invoice Payment Timelines
No Payment
Election/Default
(Net 55 Days)
Monthly
Payment Election
(Net 25 Days)
Weekly
Payment
Election
(Weekly)
Working Capital
($/MWh)*
$0.84 $0.42 -
Collateral ($/MWh)* $0.29 $0.29 $0.29
* Charge is based on Member load (as reported to the CAISO in the Market Results Interface) for which NBM is providing SC Services under this Confirmation, inclusive of losses.
CITY OF SANTA BARBARA, a California municipal corporation and charter city d/b/a Santa Barbara Clean Energy
Sign:
Print:
Title:
Date:
Exhibit C - 1
Exhibit A - 1
EXHIBIT A
CALCHOICE MEMBERS
• Town of Apple Valley, a California municipal corporation and general law city d/b/a Apple Valley Choice Energy
• City of Lancaster, a California municipal corporation and charter city d/b/a Lancaster Energy
• City of Palmdale, a California municipal corporation and charter city d/b/a Energy for Palmdale’s Independent Choice
• City of Pico Rivera, a California municipal corporation and general law city d/b/a Pico Rivera Innovative Municipal Energy
• City of Pomona, a California municipal corporation and charter city d/b/a Pomona Choice Energy
• City of Rancho Mirage, a California municipal corporation and charter city d/b/a Rancho Mirage Energy Authority
• City of San Jacinto, a California municipal corporation and general law city d/b/a San Jacinto Power
• City of Santa Barbara, a California municipal corporation and charter city d/b/a Santa Barbara Clean Energy
Exhibit C - 1
Exhibit A-1 - 1
EXHIBIT A-1
MEMBER ACKNOWLEDGEMENT OF SECURITY AGREEMENT
1. This Confirmation is subject to the Security Agreement dated April 3, 2020, between the Town of Apple Valley, California d/b/a Apple Valley Choice Energy, as pledgor, and River City Bank, a California corporation, not in its individual capacity, but solely as collateral agent, and all obligations hereunder are Obligations as defined in such Security Agreement.
2. This Confirmation is subject to the Security Agreement dated February 28, 2019 between City of Lancaster, a California municipal corporation and charter city d/b/a Lancaster Choice Energy, as pledgor, and River City Bank, a California corporation, not in its individual capacity, but solely as collateral agent, and all obligations hereunder are Obligations as defined in such Security Agreement.
3. This Confirmation is subject to the Security Agreement dated November 15, 2021, between the City of Palmdale, a California municipal corporation and charter, as pledgor, and River City Bank, a California corporation, not in its individual capacity, but solely as collateral agent, and all obligations hereunder are Obligations as defined in such Security Agreement.
4. This Confirmation is subject to the Security Agreement dated June 30, 2017, between the City of Pico Rivera, a California municipal corporation and general law city d/b/a Pico Rivera Innovative Municipal Energy, as pledgor, and River City Bank, a California corporation, not in its individual capacity, but solely as collateral agent, and all obligations hereunder are Obligations as defined in such Security Agreement.
5. This Confirmation is subject to the Security Agreement dated June 10, 2020, between the City of Pomona, a California municipal corporation and charter city, as pledgor, and River City Bank, a California corporation, not in its individual capacity, but solely as collateral agent, and all obligations hereunder are Obligations as defined in such Security Agreement.
6. This Confirmation is subject to the Security Agreement dated January 22, 2018, between the City of Rancho Mirage, a California municipal corporation and charter city d/b/a Rancho Mirage Energy Authority, as pledgor, and River City Bank, a California corporation, not in its individual capacity, but solely as collateral agent, and all obligations hereunder are Obligations as defined in such Security Agreement.
7. This Confirmation is subject to the Security Agreement dated January 22, 2018, between the City of San Jacinto, a California municipal corporation d/b/a San Jacinto Power, as pledgor, and River City Bank, a California corporation, not in its individual capacity, but solely as collateral agent, and all obligations hereunder are Obligations as defined in such Security Agreement.
8. This Confirmation is subject to the Security Agreement dated August 24, 2021, between the City of Santa Barbara, a California municipal corporation and charter city, as pledgor, and River City Bank, a California corporation, not in its individual capacity, but solely as Exhibit C - 1
Exhibit A-1 - 2
collateral agent, and all obligations hereunder are Obligations as defined in such Security Agreement.
Exhibit C - 1
Exhibit C - 1
EXHIBIT B
SCHEDULING FEES
SC Services:
• Monthly Fee: $4,500 per month per Member, plus
• Working Capital and Collateral Charges applicable to settlement costs of all Members based on their CAISO invoice payment timeline election pursuant to Section 2.7:
CAISO Invoice Payment Timelines
No Payment
Election/Default
(Net 55 Days)
Monthly Payment
Election
(Net 25 Days)
Weekly
Payment
Election
(Weekly)
Working Capital ($/MWh)* $0.84 $0.42 -
Collateral ($/MWh)* $0.29 $0.29 $0.29-
* Charge is based on Member load (as reported to the CAISO in the Market Results Interface) for which NBM is providing SC Services under this Confirmation, inclusive of losses.
CRR Services Fees:
• 20% of CRR revenue received from CRR auctions (CAISO charge code 6798) and CRR day-ahead settlement (CAISO charge code 6700), including revenue derived from load migration CRRs.
PLACEHOLDER
California Choice Energy Authority
Date:
To:
Item 8:
November 19, 2024
Chair Harris and Authority Members
Chief Executive/General Manager/General Counsel Update Receive Recommendation:
Receive update from the Chief Executive/General Manager/General Counsel.