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 Special Meeting Agenda
November 13, 2025, 11:00 a.m.
City of Santa Barbara, Conference Room #15
735 Anacapa St., Santa Barbara, CA 93101
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
This meeting will be held in person. As a convenience for the public, the meeting may also be accessed by Zoom and will be available by computer or telephone audio as indicated above. Because this is an in person meeting and the virtual component is not required, but rather is offered as a convenience, if there are any technical issues during the meeting, this meeting will continue and will not be suspended.
Members of the public may also participate in this meeting at the following locations:
Members of the public can provide public comments 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 up 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 with 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.
Apple Valley Town Hall
14955 Dale Evans Parkway,
Conference Room #A.
Apple Valley, CA 92307
BOARD OF DIRECTORS
Apple Valley Choice Energy
Doug Robertson
Lancaster Energy
George Harris, Chair
Energy for Palmdale’s
Independent Choice
Janelle Sampson
Pico Rivera Innovative
Municipal Energy
Steve Carmona
Pomona Choice Energy
Chris Diggs
Rancho Mirage Energy Authority
Jessica Pulliam
San Jacinto Power
Tom Prill
Santa Barbara Choice Energy
Alelia Parenteau, Vice Chair
California Choice Energy Authority Board Meeting Agenda November 13, 2025
CALL TO ORDER
ROLL CALL
FLAG SALUTE
BOARD COMMENTS & ANNOUNCEMENTS
PUBLIC COMMENT
11:10 – 11:15 a.m.
1 Consent Calendar
Item 1: Approve Minutes from August 19, 2025, Board of Directors Special Meeting
RECOMMENDATION
Approve Minutes of August 19, 2025, Board Meeting.
Item 2: Consider Approval of Financial Reserve Policy as Recommended by the Financial Reserve Ad Hoc Subcommittee
RECOMMENDATION
Approve Financial Reserve Policy as recommended by the Financial Reserve Ad Hoc Subcommittee.
Item 3: Consider Approval of Amendment No. 1 to the Resource Adequacy Clearinghouse Services Agreement with Optimization Solutions, LLC
RECOMMENDATION
Approve Amendment No. 1 to the Resource Adequacy Clearinghouse Services Agreement with Optimization Solutions, LLC (“OS”) to increase the total contract authorization for each of the CalChoice eight CCA member agencies to an amount not to exceed $500,000 for a total contract value not to exceed $4,000,000. 11:15 – 1:45 p.m. (includes lunch)
New Business – Board Workshop
Item 4: CalChoice Board Workshop to Discuss and Provide Direction on CalChoice Operational Logistics
RECOMMENDATION
Discuss and provide direction on CalChoice Operational Logistics, to include:
• Chair and Vice Chair Rotation Process (Allison Burns) • Board Meeting Location (Allison Burns)
• Board Meeting Schedule (Allison Burns)
• New Member Policy (Barbara Boswell)
1 Note: all times are estimates only. The Board will take up items on the agenda at the times and in the order that best serves the needs of the Authority. 000002
California Choice Energy Authority Board Meeting Agenda November 13, 2025
2 Item 5: Receive Brown Act Update from General Counsel
RECOMMENDATION
Receive Brown Act update from General Counsel.
Item 6: CalChoice Board Discuss and Provide Input on:
• What Should CalChoice Continue Doing to Support its Members? • What Should CalChoice Stop Doing?
• What Should CalChoice Start Doing to Support its Members?
RECOMMENDATION
CalChoice Board discuss and provide input on:
• What should CalChoice continue doing to support its members? • What should CalChoice stop doing?
• What should CalChoice start doing to support its members? 2:00 p.m. – 4:00 p.m.
RECESS TO CLOSED SESSION
Pursuant to Government Code Section 54957(b)(1):
PUBLIC EMPLOYMENT
Title: Chief Executive Officer
RECONVENE TO OPEN SESSION
GENERAL COUNSEL ANNOUNCEMENT
BOARD MEMBER QUESTIONS
BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS
NEXT MEETING: Regular Board Meeting Tuesday February 17, 2026 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.
000003
California Choice Energy Authority
Board of Directors Regular Meeting Minutes
August 19, 2025, 1:00 p.m.
City of Lancaster, Council Chamber
44933 Fern Ave., Lancaster CA 93534
Alternate locations:
CALL TO ORDER: The regular meeting of the California Choice Energy Authority was called to order by Chair Harris at 1:00 p.m.
ROLL CALL: All cities were represented as follows: Town of Apple Valley, Guy Eisenbrey; City of Lancaster, George Harris; City of Palmdale, Janelle Samson; City of Pico Rivera, Steve Carmona; City of Pomona, Julie Carver (alternate); City of Rancho Mirage, Jessica Pulliam; City of Santa Barbara, Alelia Parenteau; City of San Jacinto, Tom Prill; City of Pomona, Chris Diggs; arrived at 1:07 p.m.
FLAG SALUTE: Board member Eisenbrey led the flag salute.
BOARD COMMENTS & ANNOUNCEMENTS: None
PRESENTATIONS
CalCCA Presentation by Beth Vaughn: General Manager Cathy Defalco announced that Beth Vaughn was unable to attend due to jury duty and will reschedule presentation at a later date.
Consent Calendar
Item 1: Approve Minutes from June 10, 2025, and July 8, 2025, Board of Directors Special Meetings
RECOMMENDATION
Approve Minutes of June 10, 2025, and July 8, 2025, Special Board Meetings.
Item 2: Treasurer’s Report
RECOMMENDATION
Receive Treasurer's Report for period ended June 30, 2025.
Motion by Santa Barbara, second by Pomona, to approve the Consent Calendar.
Motion approved unanimously on roll call vote.
City of Pico Rivera City Hall
6615 Passons Blvd.,
Main Conference Room
Pico Rivera, CA 90660
City of Pomona
752 Commercial St.
Green Conference Room
Pomona, CA 91768
City of San Jacinto
595 S. San Jacinto Ave
Deputy City Manager’s Office
San Jacinto, CA 92583
Item 1
000004
New Business
ITEM 4 WAS HEARD AT THIS TIME
Item 4: Receive CEO Update and Consider, Discuss and Provide Input Regarding CalChoice Future Vision, Chief Executive Officer Position and Potential Board Workshop
RECOMMENDATION
Receive update from CEO and consider, discuss and provide input regarding CalChoice Future Vision, Chief Executive Officer position and Potential Board Workshop.
Interim CEO Rob Johnson provided updates to the Board and requested input.
Board direction to cancel the Regular Board meeting scheduled for November 18 and replace with a Special meeting – Full Day Board Workshop to be held in either Santa Barbara or Rancho Mirage based on cost and availability and to schedule Closed Session at the start of the Special Meeting – Workshop to discuss personnel/CEO position.
Item 3: Programs Advisory Committee Update
RECOMMENDATION
Receive Programs Advisory Committee update.
Energy Programs Manager Kathy Wells provided an update from the Programs Advisory Committee with an overview of the CalChoice Programs.
CalChoice Board received update.
Item 5: General Manager and Regulatory Update
RECOMMENDATION
Receive update from General Manager.
General Manager Cathy Defalco provided an update on regulatory items and bills that CalChoice is following.
CalChoice Board received update.
Item 6: General Counsel Update
RECOMMENDATION
Receive update from General Counsel.
No update to report.
CLOSED SESSION
Conference with Legal Counsel – Existing Litigation (§ 54956.9) C.24-11-006, Clean Power Alliance, Central Coast Community Energy, California Choice Energy Authority, and Desert Community Energy, Complainants, v. Southern California Edison Company, Defendant. 000005
Closed Session was not held.
PUBLIC COMMENT
None
BOARD MEMBER QUESTIONS
None
BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS
Santa Barbara requested an update on SCE Settlement Agreement.
ADJOURNMENT: Chair Harris adjourned the meeting at 2:35 p.m.
NEXT MEETING: Special Board Meeting/Workshop November 13, 2025 000006
STAFF REPORT
California Choice Energy Authority
Date: November 13, 2025
To: Chair Harris and Authority Members
From: Barbara Boswell, Treasurer
Item 2: Consider Approval of California Choice Energy Authority Draft Financial Reserve Policy
Recommendation:
Approve California Choice Energy Authority Draft Financial Reserve Policy.
Fiscal Impact:
There is no fiscal impact by this action.
Background:
At its May 20, 2025, Regular Board Meeting, the California Choice Energy Authority (CalChoice) Board requested an Ad-Hoc Subcommittee be created for the purpose of developing a draft Financial Reserve Policy. At the June 10, 2025, Special Meeting the Board appointed the Ad-Hoc Subcommittee.
The Financial Reserve Policy Ad-Hoc Subcommittee (Subcommittee) met twice. The first meeting was held on July 15, 2025. At that meeting the Subcommittee provided the following direction to staff:
• Prepare a cash flow of prior year transactions that tracks activity for operational and energy transactions & review with Interim Chief Executive Officer (CEO) • Consider the following for reserves:
o Working capital – operations
o Working capital – energy purchases
o Emergency reserves – member inability to pay
o Government Finance Officers Association (GFOA) Risk Based operating reserve and rate stability reserve
Litigation Risk
Cyber Security Risk
• Establish a policy related to excess funds
The second meeting was held October 15, 2025, where staff provided the results of the cash flow analysis and provided a recommendation for reserves based on input provided at the July 15 meeting. The draft Financial Reserve Policy reflects the input provided by the Subcommittee and was approved at their October 15, 2025, meeting. 000007
Item 2
Financial Reserve Policy
2 Draft Financial Reserve Policy:
The draft Policy establishes the following:
CalChoice shall maintain the following reserves, calculated and reviewed annually during the budget process:
1. Operational Reserve
o Target Level: 25% of budgeted operating expenses (excluding pass-throughs). o Purpose: To provide working capital and buffer short-term fluctuations in cash flow.
o Use: May be used to address temporary cash flow needs; any use is to be reported to the Board at the next Board meeting.
2. Emergency Reserve
o Target Level: 25% of budgeted operating expenses.
o Purpose: To provide funds for unforeseen events such as major regulatory, market, or operational emergencies.
o Use: Requires Board determination of an emergency and Board authorization before use.
3. Energy Purchases Reserve
o Target Level: 10% of the lowest cash point of the prior fiscal year. o Purpose: To ensure adequate liquidity for energy procurement, credit support, and market volatility.
o Use: May be used for procurement-related liquidity needs; any use is to be reported to the Board at the next Board meeting.
Administration
Reserve targets will be recalculated annually based on the adopted budget and financial reports.
• If the reserve falls below target as calculated during the budget process, by greater than 5%, staff will include the funds needed to bring the reserves to the targets in the CalChoice cost allocation to members. Any shortfall will be adjusted in the Emergency Reserve calculation and reported to the Board during the budget process. • If the reserve exceeds the target as calculated during the budget process, staff will offset operational expenses with the excess amount, reducing the CalChoice cost allocation to members.
• Reserve balances and any use of reserve funds will be reported to the Board at least annually.
Based on the Fiscal Year 2024/25 cash flow and FY 2025/26 budget, the reserves are calculated as follows:
RESERVE CALCULATION RESULT
Operational Reserve $2,715,520 * 0.25 $678,880
Emergency Reserve $2,715,520 * 0.25 $678,880
Energy Purchase Reserve $4,000,000 * 0.10 $400,000
TOTAL RESERVES $1,757,760
000008
Item 2
Financial Reserve Policy
3 The projected total reserves (unaudited) at June 30, 2025, are $1,730,030, which is $27,730 below the calculated reserve, but within 98.5% of the target reserve, so no additional amount is needed. The Emergency Reserve will be adjusted by the shortfall amount.
Attachment:
Draft Financial Reserve Policy # CalChoice-05
000009
CALIFORNIA CHOICE ENERGY AUTHORITY
Administrative Policy
SUBJECT:
Financial Reserve Policy
EFFECTIVE DATE:
POLICY #:
CalChoice-05
SUPERSEDES
N/A
STAFF CONTACT
Treasurer/Finance
Director
# OF PAGES:
4 Purpose
The purpose of this policy is to establish and maintain prudent financial reserves to ensure the California Choice Energy Authority (CalChoice) remains financially stable and has liquidity to meet short- and long-term cash needs and procurement needs for the mutual benefit of its members.
Policy
CalChoice shall maintain the following reserves, calculated and reviewed annually during the budget process:
1. Operational Reserve
o Target Level: 25% of budgeted operating expenses.
o Purpose: To provide working capital and buffer short-term fluctuations in cash flow.
o Use: May be used to address temporary cash flow needs; any use is to be reported to the Board at the next Board meeting.
2. Emergency Reserve
o Target Level: 25% of budgeted operating expenses.
o Purpose: To provide funds for unforeseen events such as major regulatory, market, or operational emergencies.
o Use: Requires Board determination of an emergency and Board authorization before use.
3. Energy Purchases Reserve
o Target Level: 10% of the lowest cash point of the prior fiscal year. o Purpose: To ensure adequate liquidity for energy procurement, credit support, and market volatility.
o Use: May be used for procurement-related liquidity needs; any use is to be reported to the Board at the next Board meeting.
000010
Item 2 Attachment
Policy #CalChoice-05
Administration
• Reserve targets will be recalculated annually based on the adopted budget and financial reports.
• If the reserve falls below target as calculated during the budget process by more than 5%, staff will include the funds needed to bring the reserves to the targets in the CalChoice cost allocation to members. The Emergency Reserve will be adjusted by any shortfall amount and reported to the Board.
• If the reserve exceeds the target as calculated during the budget process, staff will offset operational expenses with the excess amount, reducing the CalChoice cost allocation to members.
• Reserve balances and any use of reserve funds will be reported to the Board at least annually.
000011
STAFF REPORT
California Choice Energy Authority
11/13/25
RJ
Date: November 13, 2025
To: Chair Harris and Authority Members
From: Kevin Tonoian, Regulatory and Procurement Analyst Item 3: Approval of Amendment No. 1 to the Resource Adequacy Clearinghouse Services Agreement with Optimization Solutions, LLC
___________________________________________________________________________ Recommendation:
Approve Amendment No. 1 to the Resource Adequacy Clearinghouse Services Agreement with Optimization Solutions, LLC ("OS") to increase the total contract authorization for each of CalChoice's eight CCA member agencies to an amount not to exceed $500,000 for a total contract value not to exceed $4,000,000.
Fiscal Impact:
The contract is performance-based, meaning fees are only incurred if value (revenue and/or cost avoidance) is created for the member agencies. This action increases the maximum possible fee authorization of $500,000 per Member or aggregate not-to-exceed amount of $4,000,000, allowing the service to continue generating savings for the Members.
Background:
Optimization Solutions (OS) and California Choice Energy Authority ("Client") entered into the Resource Adequacy Clearinghouse Services Agreement ("Agreement") effective September 17, 2025, for services related to the Client's participation in the Resource Adequacy Optimization Clearinghouse (RA Clearinghouse).
The RA Clearinghouse is operated by Optimization Solutions, LLC, a wholly owned subsidiary of Pacific Energy Advisors, Inc. The Agreement utilizes a pure performance-based compensation model:
• Fees are set at ten percent (10%) of the Quantified Benefits realized by the Member agencies, as defined in the Operating Rules (Exhibit A) • There is no cost to the Client if no value is generated during an optimization round • The Quantified Benefits are composed primarily of the value created through favorable swap transactions (direct positive cash flow) and the value of improved Resource Adequacy (RA) compliance positions which reduce future procurement needs.
000012
Item 3
RA Services Agreement
2 The original Agreement includes a limitation on the aggregate fees billed by OS to Client, which in no event shall exceed $125,000.00 without prior written agreement of both parties.
The RA Clearinghouse service was designed to overcome the inefficiencies and cost drivers of the current slice-of-day (SOD) RA framework, which limits hourly trading of RA supply and obligations. By looking across participant portfolios, the RA Clearinghouse identifies mutually beneficial trades of RA supply that better align with compliance obligations, thereby reducing costs and administrative burdens.
Benefits of participating in the RA Clearinghouse include:
• Reduced RA compliance costs
• Enhanced compliance outcomes and increased RA positions due to the optimization engine's ability to maximize length, which is a capability that exceeds the California Public Utility Commission’s (CPUC) built-in SOD optimizer • Reduced costs related to incremental RA procurement
• Incremental revenue generated by the sale of surplus RA created through the optimization process
The RA Clearinghouse optimization engine first analyzes each Participant's portfolio independently to maximize length, creating the Baseline Portfolio, before aggregating Baseline Portfolios across Participants to identify trade opportunities. Trades are identified to maximize economic value while maintaining or increasing the Compliance Position.
This service was recently launched, and the initial optimization focused on the 2026 year-ahead compliance filing. Subsequent optimization runs will occur in advance of the month-ahead compliance deadlines for key summer months (July through September).
The first year-ahead optimization run for the 2026 compliance cycle, completed by Optimization Solutions in October 2025, has demonstrated significant, immediate value for participating CalChoice member agencies. The initial optimization cycle generated a combined aggregate notional and compliance position value of approximately $1.25 million.
This value was created through two primary streams: $766,000 in direct positive cash flow to members resulting from favorable swap transactions (Swap Value), and the realization of nearly 50MW in improved Resource Adequacy (RA) compliance positions (Position Value).
This improvement means CalChoice members now require substantially less incremental RA procurement to meet their regulatory obligations (cost avoidance).
Based on the 10% performance fee structure, the fee generated by this single optimization run is estimated to exhaust the current aggregate contract authority limit. To ensure that future optimization rounds, which have the potential to generate millions of dollars of potential savings, are not constrained by the current limit, and to allow all eight CalChoice CCA 000013
Item 3
RA Services Agreement
3 member agencies to realize the full benefits of the five-year Agreement term, staff recommends increasing the individual member authorization. The proposed $500,000 not-to-exceed fee limit per member provides sufficient head room for the optimization service to continue providing value over the five-year term of the Agreement, while maintaining the fee structure based on value generation.
Attachments:
Attachment A - Amendment No. 1 to the Resource Adequacy Clearinghouse Services Agreement with Optimization Solutions, LLC
Attachment B – Resource Adequacy Clearinghouse Services Agreement with Optimization Solutions, LLC
000014
AMENDMENT NO. 1 TO RESOURCE ADEQUACY CLEARINGHOUSE SERVICE AGREEMENT BY
AND BETWEEN THECALIFORNIA CHOICE ENERGY AUTHORITY AND
OPTIMIZATION SOLUTIONS, LLC.
This Amendment ("Amendment No. 1") is hereby entered into by and between the California Choice Energy Authority ("Client"), a Joint Powers Authority, and Optimization Solutions, LLC ("OS"), with respect to the Resource Adequacy Clearinghouse Services Agreement between the parties effective September 17, 2025 ("Agreement").
The parties agree as follows:
1. Section 2 [Fees for Services] of the Agreement is hereby amended to increase the limitation on the aggregate fees billed by OS to Client. The new limitation shall be an amount not to exceed $500,000 for each of CalChoice's eight CCA Member agencies, for a total contract value not to exceed $4,000,000.
2. The performance-based compensation model, where fees are set at ten percent (10%) of the Quantified Benefits realized by the Member agencies, remains in full force and effect. This amendment increases the maximum possible fee authorization but does not change the fee structure.
3. This Amendment is effective November 13, 2025.
In witness whereof the parties have executed the Amendment on the date set forth below:
CLIENT SERVICE PROVIDER
CALIFORNIA CHOICE ENERGY AUTHORITY OPTIMIZATION SOLUTIONS SERVICES, LLC. _____________________________________________ ____________________________________________ Robert Johnson, Interim CEO John Dalessi, Managing Partner Dated: Dated:
ATTEST:
Susan Caputo, MMC, Authority Secretary
_________________________________________
Allison Burns, General Counsel
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Item 3 Attachment A
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RESOURCE ADEQUACY CLEARINGHOUSE SERVICES AGREEMENT
This Resource Adequacy Clearinghouse Services Agreement (“Agreement”) is effective September 17, 2025, between Optimization Solutions, LLC (“OS”) and California Choice Energy Authority, a joint powers authority (“Client”), for services related to Client’s participation in the Resource Adequacy Optimization Clearinghouse operated by OS.
1. Duties and Scope of Services. OS shall render services to Client as described in the Resource Adequacy Clearinghouse Operating Rules set forth in Exhibit A, as may be amended from time to time subject to a minimum thirty (30) day notice from OS.
2. Fees for Services. For services provided by OS to Client pursuant to this Agreement, Client shall pay OS at a rate of ten percent (10%) of Quantified Benefits (as defined in the Resource Adequacy Clearinghouse Operating Rules set forth in Exhibit A) and there is no cost to Client if there is no value generated for Client during the performance of the services. Any increase in the service fee shall require an amendment to this Agreement. In no event shall the aggregate fees billed by OS to Client exceed one hundred twenty-five thousand dollars ($125,000.00) without the prior written agreement of both parties. OS will promptly inform Client as soon as eighty percent (80%) of the aforementioned not-to-exceed limit has been reached.
3. Billing and Payment. Unless otherwise agreed in writing, OS will submit monthly invoices for services provided in the prior calendar month. Payment of OS invoices will be due in U.S. funds no later than 30 days after the invoice date. Amounts past due more than 30 days will bear interest at a monthly rate of 1%, or the maximum extent permitted by law, from the due date until payment is received.
4. Independent Contractor. It is understood and agreed that OS will for all purposes be an independent contractor, will not hold itself out as representing or acting in any manner for Client, and neither party will have any authority to bind the other to any contract or in any other manner.
5. Term. The Term of this Agreement shall be five (5) years, unless terminated by either party pursuant to this Agreement, or extended by mutual written agreement
6. Termination. These terms will be subject to the right of either party to terminate this Agreement at any time upon not less than twenty (20) days’ prior written notice to the other party. Upon termination, Client will pay the full amount due for any services rendered, including any costs and expenses incurred and not paid for up to the date of termination. OS shall return all documents, information and/or other materials to Client within ten business days of the date on which this Agreement terminates.
7. Responsibility Statement. OS warrants that the services provided for herein will be performed in a timely, professional manner in accordance with the Resource Adequacy Optimization Clearinghouse Operating Rules, which are attached hereto as Exhibit A, and that adequate qualified personnel will be assigned for that purpose. If, during the performance of these services or for a period of up to three months thereafter, such services prove to be faulty or defective by reason of a failure to meet such standards, OS agrees that upon receipt of written notification from Client prior to the expiration of the three-month period following the identification of any such fault or defect, OS will engage in discussions with Client to quantify the alleged financial impacts associated with the noted faulty or defective services. To the extent that OS and Client Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000016
Item 3 Attachment B
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mutually agree on specific adverse financial impacts to Client related to the alleged fault or defect, OS will issue an invoice credit to Client in relation to the mutually agreed upon fault or defect; such credit will be issued to Client in the immediately succeeding invoice period. In no case shall a credit issued by OS to Client for a mutually agreed upon fault or defect exceed the associated invoice payment made by Client to OS under this Agreement. The foregoing will constitute OS’s sole warranty with respect to the accuracy and completeness of the work and the activities involved in its preparation, and is made in lieu of all other warranties and representations, express or implied, including any implied warranties of merchantability or fitness for a particular purpose.
8. Confidentiality of Data, Information, and Documents. OS will take reasonable steps to protect any of Client’s confidential information disclosed to OS during the course of this engagement, using the same degree of care that OS uses to protect OS’s own proprietary and confidential information of like kind, which will be at least reasonable care and consistent with industry standards as applied to the confidential information. Upon Client’s written request, all confidential information made available hereunder will be promptly returned to Client or destroyed, if such return is impracticable. If OS receives a subpoena or other validly issued administrative request or order seeking confidential information, we will promptly notify Client and reasonably cooperate with Client if Client chooses to pursue Client’s legal remedies to prevent disclosure of such confidential information. As used in this paragraph, “confidential information” means any proprietary, privileged or confidential information that Client discloses to OS during the course of this engagement. However, confidential information shall not include information (a) previously known to OS, (b) independently developed by OS, (c) acquired by OS from a third party which is not, to OS’s knowledge, under any obligation not to disclose such information, or (d) which is or becomes public through no breach by OS of this Agreement.
9. Indemnification. OS will indemnify and hold Client and Client’s officers, directors and employees harmless from and against all demands, claims losses, damages, judgments, expenses and costs (including attorney fees) arising from any and all personal injury or property loss arising out of or connected with the activities of OS, its agents, employees or contractors while in the performance of any of the acts, duties or obligations related to the services provided; provided, however, that Client provides OS with reasonable notice, authority and information to defend, and provided further that OS will have no such indemnification obligations to the extent that such demands, claims, losses, damages, judgments, expenses and costs are based on, or arise out of Client’s (or Client’s officers’, directors’, employees’, or affiliates’) willful or negligent acts or omissions (and Client had an obligation to act).
10. Limitation of Liability. Notwithstanding any other provision of these terms, and in recognition of the relative risks and benefits of this engagement to Client and to OS, the parties agree, to the fullest extent permitted by law, to limit the aggregate liability of each party (and its affiliates, directors, officers, employees, agents and representatives) to the total compensation paid to OS under this Agreement. This limitation of liability will apply to all suits, claims, actions, losses, damages and costs (including legal fees and expenses) arising from orrelated to this engagement orthe Services and withoutregard to the legal theory under which such liability may be imposed, except in the case for OS, this limitation of liability section shall not apply to OS’s obligations to indemnify Client due to OS’s violation of Applicable Law (as defined in Section 21 herein) or due to OS’s indemnification obligations around intellectual property infringement listed in Section 13 of this Agreement.
11. Exclusion of Certain Damages. In no event shall either party, its directors, officers, employees, and affiliates be liable for any indirect, consequential or (to the extent permitted by law) punitive Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000017
- 3 - Version 8.19.2025
damages relating to or arising out of this Agreement or the services provided hereunder, whether in contract, tort (including negligence), strict liability or otherwise, even if such party will have been advised of the possibility of such loss or damage.
12. Rights to Deliverables. Any OS report or other document (“Deliverable”) prepared pursuant to these terms shall be only for Client’s internal business purposes and for any specific purposes identified in Exhibit A to this Agreement. Upon payment in full of OS’s fees and expenses for this engagement Client will obtain all right, title and interest in and to any Deliverables, except for any pre-existing patent, copyright, trademark, intellectual property rights, methodologies, processes, models, tools, techniques, ideas, concepts, trade secrets and know-how (“OS Knowledge”) embodied in such Deliverables. OS grants Client a perpetual, non-exclusive, non-transferable license to use and disclose such Deliverables solely for Client’s internal business purposes and for any specific purposes identified in Exhibit A to this Agreement. OS may retain a copy of any such Deliverable for its internal recordkeeping purposes or compliance with applicable professional standards.
13. Intellectual Property Indemnification. OS will indemnify and hold Client and Client’s officers, directors and employees harmless from and against any third-party claim that any of the Deliverables developed under this Agreement by OS infringes a presently existing United States patent, trademark, copyright, or trade secret; provided, however, that Client provides OS with timely notice and reasonable authority and information to defend. OS will not indemnify Client, however, if the claim of infringement arises out of or is caused by Client’s misuse or modification of such Deliverable or Client’s breach of this Agreement. If such Deliverable is, or in OS’s opinion is likely to be, held to constitute an infringing product, OS will at its expense and option either (a) procure the right for Client to continue using it; (b) replace it with a non-infringing equivalent; (c) modify it to make it non-infringing or (d) accept return of such Deliverable and refund Client the fees paid for such Deliverable. The foregoing remedies constitute Client’s sole and exclusive remedies and OS’s entire liability with respect to infringement.
14. Excused Performance. OS will not be deemed in default of any provision hereof or be liable for any delay, failure in performance, or interruption of service resulting directly or indirectly from acts of God, civil or military authority, civil disturbance, war, strikes or other labor disputes, fires, other catastrophes, unforeseen legislative or regulatory changes related to the services described herein, or other forces beyond its reasonable control.
15. RESERVED
16. Amendment. All changes or modifications to this Agreement shall be in writing and signed by both parties.
17. Governing Law and Venue. Before the filing of any civil action in the event of a dispute involving the terms of this agreement, the parties agree that they shall mediate any such dispute with a mutually agreed upon mediator provided by the State mediation and conciliation service or any other established dispute resolution body, each side bearing their own costs in connection with the mediation. After such mediation the parties may agree to binding arbitration in lieu of civil litigation, each side bearing their own costs. This Agreement shall be construed and interpreted according to, and the rights of the parties shall be governed by, the laws of the State of California without regard to its conflicts of laws principles. Each Party irrevocably agrees that any state or federal court of competent jurisdiction in Sacramento County or the eastern district of California, Sacramento, in the event of a federal court filing, Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000018
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will be the exclusive venue for resolution of any disputes arising out of this Agreement.
18. Entire Agreement. This Agreement constitutes the complete and final expression of the agreement of the parties and is intended as a complete and exclusive statement of the terms of their agreements and supersedes all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof.
19. Severability. If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the stricken provision.
20. Notices.
(a) Any notice, demand, information, invoice, report, or item otherwise required, authorized, or provided for in this Agreement, unless otherwise specified herein, shall be deemed properly given if delivered in person or sent by United States Mail, First Class postage prepaid:
Project Manager :
Cathy DeFalco
California Choice Energy Authority
44933 Fern Avenue
Lancaster, CA 93534
All Legal Notices related to this Agreement shall provide a copy to [[email protected]:
OS: Optimization Solutions, LLC
Attn: John Dalessi
300 University Avenue, Suite 220
Sacramento, CA 95825
(b) All notices shall be deemed effective upon receipt by the party to whom such notice is given.
21. Compliance with Applicable Law. At all times during the Term and the performance of the Services, OS shall comply with all applicable federal, state and local laws, regulations, ordinances and resolutions (“Applicable Law”).
22. No Recourse Against Constituent Members of Client. Client is organized as a Joint Powers Authority in accordance with the Joint Exercise of Powers Act of the State of California (Government Code Section 6500, et seq.). Pursuant to Client’s Joint Powers Agreement, Client is a public entity separate from its constituent members. Client shall solely be responsible for all debts, obligations, and liabilities accruing and arising out of this Agreement. OS shall have rights and shall not make any claims, take any actions, or assert any remedies against any of Client’s constituent members in connection with this Agreement.
23. Diversity Survey. Pursuant to Senate Bill 255 which amends Section 366.2 of the California Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000019
- 5 - Version 8.19.2025
Public Utilities Code, Client is required to submit to the California Public Utilities Commission an annual report regarding its procurement from women-owned, minority-owned, disabled veteran-owned and LGBT-owned business enterprises (“WMDVLGBTBE”). Consistent with these requirements, OS agrees to provide information to Client regarding OS’s status as a WMDVLGBTBE and any engagement of WMDVLGBTBEs in its provision of Services under this Agreement. Concurrently with the execution of this Agreement, OS agrees to complete and deliver Client’s Supplier Diversity Survey, found at the following link:
https://form.asana.com/?k=jSGYk4x3sf2dHfSzywc2fg&d=163567039999692 (the “Diversity Survey”). Because Client is required to submit annual reports and/or because the Diversity Survey may be updated or revised during the term of this Agreement, OS agrees to complete and deliver the Diversity Survey, an updated or revised version of the Diversity Survey or a similar survey at the reasonable request of Client and to otherwise reasonably cooperate with Client to provide the information described above. OS shall provide all such information in the timeframe reasonably requested by Client.
24. Signature Clause. The signatories hereto represent that they are authorized to enter into this Agreement on behalf of the party for whom they sign.
AUTHORIZED BY:
OPTIMIZATION SOLUTIONS, LLC
By:
Printed: John Dalessi, Managing Partner
Dated:
ACCEPTED BY:
CALIFORNIA CHOICE ENERGY
AUTHORITY
By:
Printed: Robert Johnson, Interim CEO
Dated:
Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 9/17/2025
9/17/2025
000020
- 6 - Version 8.19.2025
EXHIBIT A
RESOURCE ADEQUACY OPTIMIZATION
CLEARINGHOUSE OPERATING RULES
Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000021
1 Resource Adequacy Optimization Clearinghouse Operating Rules Version No. 1.1
Effective Date: September 1, 2025
CONTENTS
Overview ..................................................................................................................................... 2 Optimization Objective................................................................................................................. 2 Transaction Tenor, Limits, and Confirmations ............................................................................... 3 Tenor....................................................................................................................................... 3 Standardized Confirmation....................................................................................................... 3 Transaction Limits.................................................................................................................... 4 Optimization Process................................................................................................................... 4 Reference Prices...................................................................................................................... 4 Approval Process and Action Plan............................................................................................. 4 Performance Reporting ............................................................................................................ 5 Timeline ...................................................................................................................................... 5 Year-Ahead Process................................................................................................................. 5 Month-Ahead Process.............................................................................................................. 6 RAx Invoices and Payments.......................................................................................................... 6 Confidentiality ............................................................................................................................. 7 Changes to Operating Rules ......................................................................................................... 7 Attachments................................................................................................................................ 8 Attachment 1: Sample Quantified Benefits and Fee Summary Report......................................... 9 Attachment 2: Sample Optimization Summary Performance Report ........................................10 Attachment 3: Standard WSPP RA Confirmation......................................................................11 Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000022
2 OVERVIEW
The Resource Adequacy Optimization Clearinghouse (RAx) is a service that seeks to minimize resource adequacy compliance costs for Participants through portfolio optimization and trading across Participant resource adequacy (RA) portfolios under California’s slice-of-day (SOD) framework. Potential benefits of the RAx service include reduced RA compliance costs, improvements in market efficiency and enhanced competition for RA products, increased transactional efficiency and overall improvements to RA compliance outcomes for the participants.
RAx will analyze Participant RA compliance templates to optimize resource profiles and identify beneficial trades among Participants with the goal of minimizing short positions and maximizing length that can be monetized via sales to other Participants or other parties. Following each optimization, RAx will provide each Participant with an Action Plan showing a summary of proposed transactions, Quantified Benefits, updated SOD templates reflecting the outcome of proposed trades, and populated transaction confirmations. Participants will verify the proposed transactions and finalize execution of the confirmations with the matched counterparties.
OPTIMIZATION OBJECTIVE
The optimization will seek to maximize economic value of RA portfolios while maintaining or increasing the Compliance Position under the California Public Utilities Commission (CPUC) SOD RA framework. Compliance Position is measured at the minimum hourly position for each month, subject to the various validations in the SOD compliance templates current at the time of the optimization. The optimization will treat surplus in the Baseline Portfolio Compliance Position as planned and will be constrained from causing a decrease in the Compliance Position.
Each RA monthly portfolio will first be analyzed independently using the RAx optimization engine, which can redispatch resource profiles to reduce short positions and maximize length. The RAx optimization engine exceeds the capability of the CPUC’s built-in SOD optimizer, which only considers shortfalls and does not seek to maximize length. The resulting optimized SOD template will be the Participant’s Baseline Portfolio, which will be returned to the Participant prior to the cross-Participant optimization process. Sharing the Baseline Portfolio will ensure that RAx and the Participant are measuring outcomes of the optimization process in consideration of the same baseline. When completing optimization services, RAx will comply with all applicable laws and regulations and protect each Participant’s confidential information from being shared or used by any other Participant.
Baseline Portfolios will be aggregated across Participants to identify maximum resource quantities of various profile types that will be available during the optimization process. Resources flagged by the Participant as ineligible for trading, including any placeholders to prevent any pending or planned procurement from being disrupted, will be excluded. This limits the optimization engine to consider only the achievable subsets of trade scenarios that are feasible within the Participant base at that time.
The optimization engine will identify achievable MW-for-MW trade scenarios and other transaction matching opportunities that would generate measurable financial and/or compliance benefits for the Participant’s RA portfolio.
Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000023
3 In instances where mutually beneficial resources are limited, proposed transaction volumes will be allocated proportionally (in full MW increments) from/to each Participant, subject to a minimum share of 5 MW or 5% of the total proposed (optimized) trade, whichever is greater. The minimum limit is intended to eliminate small transactions that would add administrative burdens (e.g., contracting, supply plan coordination, invoicing) without providing a significant benefit to the optimization. For illustrative purposes in the example below, there are three Participants who could benefit from a trade of 24X7 resource in their portfolios for four-hour battery storage (BESS), but the total 24X7 capacity of 185 MW exceeds the 125 MW of BESS available from Participant 1. Participant 4 does not meet the 5 MW or 5% threshold and is excluded. The trade would be allocated to Participant 2 and Participant 3 at a share of 56% and 44%, respectively.
Trade Allocation Example
TRANSACTION TENOR, LIMITS, AND CONFIRMATIONS
Tenor
Proposed transactions will be for the five summer months of the year-ahead RA compliance process (May through September). Month-ahead optimizations will be run for the months of July through September. Proposed transactions will typically have tenors of one to five months.
Standardized Confirmation
RA transactions among RAx Participants will utilize a standard WSPP RA confirmation shown in Attachment 3, which may be amended from time to time upon approval of the Participants.
Participant_1
Available BESS to Trade for 24x7 125
Participant_2 Participant_3 Participant_4 Total
24x7 Available to Trade for BESS 100 80 5 185
=100/185 =80/185 =5/185
Trade Share Ratio 54% 43% 3%
=0.54*125 =0.43*125 =0.03*125
Trade Share 68 54 4
Participant_2 Participant_3 Total
24x7 Available to Trade for BESS 100 80 180
=100/180 =80/180
Final Trade Share Ratio 56% 44%
=0.56*125 =0.44*125
Final Trade Share 70 55
Participant_4 does not meet 5% or 5 MW min so split would be recalculated between Participant_2 and Participant_3 Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000024
4 Standardization of contracts will speed transactions among Participants and maximize the efficiency and effectiveness of the RAx process.
Transaction Limits
Participants are able to specify counterparties that are not authorized for trading in advance of each optimization (“No Trade List”). The optimization engine will be constrained from proposing transactions with entities on the No Trade List. Participants can also flag any resource in its RA portfolio that is not eligible for trade, in which case it will be excluded from the optimization.
OPTIMIZATION PROCESS
Reference Prices
Prior to each optimization, RAx will distribute the Reference Prices to all Participants, which will reflect the current market for RA, and will be utilized as trade parameters for the optimization. The Reference Prices will consist of the monthly RA Price, which is reflective of a standard 24x7 hourly profiled resource due to its transparency of pricing and liquidity in the broader RA marketplace, and a technology discount factor will be assigned for each alternative resource that may be transacted (PV Solar, Battery Storage (4hr), Wind, etc.).Changes in Compliance Position caused by the RAx that are retained by Participant towards their compliance status will be valued at the RA Price; proposed optimization transactions will be valued at the RA Price, including any technology discount adjustments. Participants may provide feedback on the initial Reference Prices prior to the optimization, and RAx will issue final Reference Prices reflecting any changes from Participant feedback. Participants can elect to be excluded from the optimization for any reason, including disagreement with Reference Prices.
Approval Process and Action Plan
Upon completion of the optimization, RAx will provide Participant with a preliminary trade summary for review and approval. After receiving approvals from all associated Participants, RAx will generate an Action Plan specific to each participant, which will detail the proposed optimization transactions, along with the benefits that are created net of assessed fees. The Action Plan of each Participant will not be shared with other Participants. Following receipt of its Action Plan, each Participant is expected to act in good faith to consummate proposed transactions identified by RAx at the Reference Prices or other prices agreed to by the counterparties. Each Action Plan will consist of the following:
1. Baseline Portfolio and Optimized Portfolio
The Optimized Portfolio is the SOD RA compliance template reflecting all adjustments, relative to the Baseline Portfolio, associated with the proposed optimization transactions. Comparing the Optimized Portfolio with the Baseline Portfolio gives the Participant the ability to validate optimization results prior to approving/executing transactions.
2. Supply Plan and RA Plan adjustments
Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000025
5 Supply Plan updates and Revised RA Plans will be generated by RAx to support cohesive compliance coordination between the Participant, upstream suppliers, and CAISO.
3. Executable confirmation agreements
Using the Standardized Confirmation, RAx will generate executable confirmation agreements for all proposed optimization transactions. Participant will return partially executed confirmation agreements to RAx, and RAx will return fully executed copies to the respective parties.
4. Quantified Benefits and Fee Summary Report (sample in Attachment 1) Quantified Benefits and applicable service fees will be listed for each transaction.
Performance Reporting
Following each optimization process, RAx will distribute to all Participants a Performance Report showing the aggregate benefits achieved through the optimization, summary information about the optimization, and transaction summaries with the Participant identities masked to maintain confidentiality. The report provides transparency enabling Participants to monitor the effectiveness of the RAx service, while maintaining confidentiality of Participant information. A sample Performance Report is contained in Attachment 2.
TIMELINE
The RAx timeline dovetails with the RA compliance and procurement cycles. The timeline begins with the year-ahead cycle and continues with the month-ahead cycle for the months with high optimization value (e.g., May through September). The timelines allow Participants sufficient time for coordination with upstream suppliers in advance of the typical notification periods reflected in “upstream” supply contracts.
Year-Ahead Process
Round 1 – Mid-August through Early September
T equals the October 31st year-ahead compliance showing deadline.
T-75 (mid-August): RAx provides Participants with Initial Reference Prices and requests current Year-Ahead SOD compliance templates for May through September.
T-70: RAx provides final Reference Prices
T-65: Participants provide SOD templates to RAx
T-55: (early September) RAx completes optimization and provides Action Plan to each Participant Round 2 – Mid-September through Early October
T-45 (mid-September): RAx provides Participants with Initial Reference Prices and requests current Year-Ahead SOD compliance templates for May through September.
Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000026
6 T-40: RAx provides final Reference Prices
T-35: Participants provide SOD templates to RAx
T-25: (early October) RAx completes optimization and provides Action Plan to each Participant Month-Ahead Process
Round 1 – Mid-January through Early February (Full Q3)
TMA equals May 1.
TMA-105 (mid-January): RAx provides Participants with Initial Reference Prices and requests current Month-Ahead SOD compliance templates for May through September.
TMA -100: RAx provides final Reference Prices
TMA -95: Participants provide SOD templates to RAx
TMA -85: (early February) RAx completes optimization and provides Action Plan to each Participant Rounds 2-4 – Individual Q3 Months (July MA Example)
July Month Ahead – Mid-April through Early May ()
TMA equals July 1.
TMA-75 (mid-April): RAx provides Participants with Initial Reference Prices and requests current Month-Ahead SOD compliance templates for July.
TMA -70: RAx provides final Reference Prices
TMA -65: Participants provide SOD templates to RAx
TMA -50: (early May) RAx completes optimization and provides Action Plan to each Participant
RAX INVOICES AND PAYMENTS
Service fees will be assessed at the percentage agreed to in Participant’s Agreement with OS as a percentage of Quantified Benefits, ensuring that the Participant retains the majority of value created and that there is no cost to Participant if RAx does not generate value for participant during the optimization round. Quantified Benefits are defined as the sum of (1) the net notional value of proposed swap transactions (can be positive or negative); (2) the notional value of proposed sales (not including the sell-side of swap transactions); (3) the change in Compliance Position between the Baseline Portfolio and the Optimized Portfolio retained by Participant to count towards compliance; and (4) adjustments to net out any broker fees caused by transacting outside the RAx Participants.
Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000027
7 RAx will provide a monthly invoice to Participant for Quantified Benefits associated with executed transactions in the prior calendar month. Payment shall be due within thirty (30) calendar days following receipt of the monthly invoice.
CONFIDENTIALITY
All Participant data provided to RAx will be held in strict confidence and will be used exclusively for the purposes of optimizing portfolio value for Participants. No Participant data will be shared or disclosed with other Participants except for the data necessary to describe proposed transactions (for purposes of facilitating “go/no-go” decisions amongst the affected Participants). Such information is expected to include the relevant resource_id(s) of generators associated with the proposed transaction(s), the transaction volume, and the applicable Reference Price(s).
Counterparty identities would not be disclosed until the Participants agree to move forward with the proposed transaction and a draft confirmation is presented to the Participant(s) for execution. All summary reports provided by RAx will retain confidentiality of individual Participant positions and shall not include identifying information for reported transactions.
CHANGES TO OPERATING RULES
RAx may revise the Operating Rules from time-to-time. Any changes to the Operating Rules will be noticed to Participants at least thirty (30) days in advance of the effective date of the revised version.
Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000028
8 ATTACHMENTS
Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000029
9 Attachment 1: Sample Quantified Benefits and Fee Summary Report Action Plan: Participant_1 – Month-Ahead Round 1 (Jul-Sep 202X) • July 202X – No Action
• August 202X – (2) Counterparties; (2) Transactions; (3) Confirms o Resource swap generates net-revenue and increases Compliance Position length. o Sale of length created by swap to external counterparty (External_1). • September 202X – (1) Counterparty; (1) Transaction; (2) Confirms o Resource swap at a net-cost but significantly adds to Compliance Position, getting Participant_1 closer to meeting hourly RA requirements. • Total Quantified Benefits generated: $342,172.00
o RAx service fees: $34,217.20
Transaction Summary
RAx
Transaction
#
Trade
Month
Transaction
Type Counterparty Resource Type Profile Sum of Quantity Sum of
Price
$/kW-mo
Sum of Swap
Notional Value
Sum of Sale-Only Notional
Value
Sum of
Broker Fees
1 Aug/202X Swap/Sell Participant_2 Geothermal 24x7 (8.00) $ 10.00 $ 80,000 $ - $ - Swap/Buy Participant_2 SoCal Axis PV Solar PV 8.00 $ 5.00 $ (40,000) $ - $ - Sell External_1 Natural Gas 24x7 (14.28) $ 10.00 $ - $ 142,800 $ ( 1,428) 1 Total (14.28) $ 25.00 $ 40,000 $ 142,800 $ (1,428)
2 Sep/202X Swap/Sell Participant_3 NorCal Axis PV Solar PV (36.00) $ 6.00 $ 216,000 $ - $ - Swap/Buy Participant_3 Natural Gas 24x7 36.00 $ 12.00 $ (432,000) $ - $ - 2 Total - $ (216,000) $ - $ -
Compliance Position Summary
RAx Transaction # Trade Month RA Price Min of Baseline
Portfolio
Min of Optimized
Portfolio
Min of Compliance
Position Delta
Sum of Compliance
Position Value
1 Aug/202X $ 10.00 1.27 1.27 - $ -
2 Sep/202X $ 12.00 (47.85) (16.45) 31.40 $ 376,800
Grand Total (47.85) (16.45) - $ 376,800
Quantified Benefits Summary
RAx
Transaction
#
Trade
Month
Sum of Swap Notional
Value
Sum of Sale-Only
Notional Value
Sum of Compliance
Position Value Sum of Broker Fees Sum of Total Quantified Benefits 1 Aug/202X $ 40,000.00 $ 142,800.00 $ - $ (1,428.00) $ 181,372.00 2 Sep/202X $ (216,000.00) $ - $ 376,800.00 $ - $ 160,800.00 Grand Total $ (176,000.00) $ 142,800.00 $ 376,800.00 $ (1,428.00) $ 342,172.00 Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000030
10 Attachment 2: Sample Optimization Summary Performance Report Reference Prices
($/kW-mo) 24x7 BESS Wind PV
Jun-2X $3.00 $2.50 $3.00 $2.00
Jul-2X $5.00 $3.00 $4.00 $2.00
Aug-2X $11.00 $8.00 $10.00 $6.00
Sep-2X $15.00 $11.00 $13.00 $8.00
Oct-2X $3.00 $2.50 $3.00 $2.00
Optimization Transaction Summary
Terms Optimized Jul – Sep 202X
Members Participating 4
Members Optimized 3
Contracts Executed 5
Incremental Capacity Benefits Generated (Total MW) 18.5 Incremental Capacity Benefits Realized (Total $) $195,250 Incremental Compliance Achievements (Months) 2
MW Sold Externally 5
Aggregate Portfolio Composition
Transaction Details
Transaction Cycle Type Details
Deal 1 Aug/202X - MA Swap 8 MW - 24x7 (Gas) for South Axis PV Deal 1.1 Aug/202X - MA Sale 5 MW - 24x7 (Gas)
Deal 2 Jul/202X – MA Swap 15 MW – 4hr BESS for NM Wind
Deal X
Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000031
11 Attachment 3: Standard WSPP RA Confirmation
Docusign Envelope ID: 2DEF3DAD-FA75-418A-9D31-50C0568BFACE 000032