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
February 17, 2026, 1:00 p.m.
City of Rancho Mirage, City Council Chambers
69825 Highway 111, Rancho Mirage, CA. 92270
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: 890 8092 9282
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.
City of Pico Rivera
6615 Passons Blvd.,
Main Conference Room
Pico Rivera, CA 90660
BOARD OF DIRECTORS
George Harris, Chair
Lancaster Energy
Alelia Parenteau, Vice Chair
Santa Barbara Choice Energy
Apple Valley Choice Energy
Guy Eisenbrey
Energy for Palmdale’s
Independent Choice
Janelle Samson
Pico Rivera Innovative
Municipal Energy
Steve Carmona
Pomona Choice Energy
Chris Diggs
Rancho Mirage Energy
Authority
Jessica Pulliam
San Jacinto Power
Tom Prill
2 California Choice Energy Authority Special Board Meeting Agenda February 17, 2026
CALL TO ORDER
ROLL CALL
FLAG SALUTE
BOARD COMMENTS & ANNOUNCEMENTS
PUBLIC COMMENT
PRESENTATIONS
California Community Choice Association (CalCCA) Update – Beth Vaughn, Chief Executive Officer Consent Calendar
Item 1: Approve Minutes from November 13, 2025, Board of Directors Special Meeting
RECOMMENDATION
Approve Minutes of November 13, 2025, Board Meeting.
Item 2: Receive and File Treasurer’s Report for Preliminary, Unaudited Period Ending January 31, 2026
RECOMMENDATION
Receive Treasurer’s Report for period ending January 31, 2026.
Item 3: Consider Adoption of Resolution Setting the Regular Meeting Schedule and Location of the California Choice Energy Authority and Establishing the Policy of Rotation of the Board Chair and Vice Chair Positions
RECOMMENDATION
Adopt Resolution setting the regular meeting schedule and location of the California Choice Energy Authority and establishing the policy of rotation of the Board Chair and Vice Chair.
Item 4: Receive and File California Choice Energy Authority Audited Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025
RECOMMENDATION
Receive California Choice Energy Authority Fiscal Year 2024/25 Audited Financial Statements.
New Business
Item 5: Receive CalChoice 2025 Programs Year-in-Review Report
RECOMMENDATION
Receive CalChoice 2025 Programs Year-in-Review Report.
Item 6: Receive Presentation Regarding Distributed Energy Resources Management System (DERMS) and Provide Direction
3 California Choice Energy Authority Special Board Meeting Agenda February 17, 2026
RECOMMENDATION
Receive presentation and provide direction to staff to negotiate an agreement with Lunar Energy for a Distributed Energy Resources Management System (DERMS) and for the design of a future demand response program.
Item 7: Receive Presentation from Pacific Energy Advisors Regarding Incremental Capacity Procurement Mandates
RECOMMENDATION
Receive Presentation from Pacific Energy Advisors regarding Incremental Capacity Procurement Mandates.
Item 8: Receive General Manager Update on Procurement and Regulatory
RECOMMENDATION
Receive General Manager update on Procurement and Regulatory topics.
Item 9: Receive Interim Chief Executive Officer Update on CalChoice operations
RECOMMENDATION
Receive Interim Chief Executive Officer update on CalChoice operations.
Item 10: Receive General Counsel Update on CalChoice matters
RECOMMENDATION
Receive General Counsel update on CalChoice matters.
BOARD STUDY SESSION
November 13, 2025, Board Workshop Follow-Up
• Administrative/Board Strategy
• Cost Saving/Innovation/Efficiency
• Education/Information/Programs
• Finance/Budget/Contracts
• Legal/Regulatory
Strategage Dashboard Demonstration
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
4 California Choice Energy Authority Special Board Meeting Agenda February 17, 2026
NEXT MEETING: Regular Board Meeting Tuesday May 19, 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.
California Choice Energy Authority
Board of Directors Regular Meeting Minutes
November 13, 2025, 11:00 p.m.
City of Santa Barbara, Conference Room #15
735 Anacapa St., Santa Barbara, CA 93101
Alternate locations:
CALL TO ORDER: The regular meeting of the California Choice Energy Authority was called to order by Chair Harris at 11:05 a.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.
FLAG SALUTE: Chair Harris led the flag salute.
BOARD COMMENTS & ANNOUNCEMENTS: None
PUBLIC COMMENT: None
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 Apple Valley Town Hall
14955 Dale Evans Parkway,
Conference Room #A
Apple Valley, CA 92307
5 Item 1
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.
Motion by Pico Rivera, second by Santa Barbara, to approve the Consent Calendar.
Motion approved unanimously on roll call vote.
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)
General Counsel Allison Burns and Treasurer Barbara Boswell led discussions and received feedback from the Board regarding CalChoice Operational Logistics.
RECESS AND RECONVENE
Chair Harris recessed the meeting at 12:07 and reconvened at 12:21.
Item 5: Receive Brown Act Update from General Counsel
RECOMMENDATION
Receive Brown Act update from General Counsel.
General Counsel Allison Burns presented, and Board received an update to the Brown Act.
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? The Board discussed and provided input on various items in support of CalChoice members. 6 CLOSED SESSION
General Counsel Allison Burns announced that the Board will recess to Closed Session Pursuant to Government Code Section 54957(b)(1):PUBLIC EMPLOYMENT Title: Chief Executive Officer
RECESS AND RECONVENE
The Board recessed to Closed Session at 2:01 p.m. and reconvened to Open Session at 3:33 p.m., General Counsel Allison Burns announced that no action was taken in Closed Session that was required to be reported.
BOARD MEMBER QUESTIONS
None
BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS
None
ADJOURNMENT: Chair Harris adjourned the meeting at 3:36 p.m.
NEXT MEETING: Special Board Meeting February 17, 2026, City of Rancho Mirage 7 STAFF REPORT
California Choice Energy Authority
2/17/26
RJ
Date: February 17, 2026
To: Chair Harris and Authority Members
From: Barbara Boswell, Treasurer
Item 2: Receive and File Treasurer’s Report for Preliminary, Unaudited Period Ending January 31, 2026
Recommendation:
Receive and file Treasurer’s Report for Preliminary, Unaudited Period Ending January 31, 2026.
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 preliminary, unaudited Financial Statements as of January 31, 2026:
• 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
• Preliminary and Unaudited Budget to Actuals for the fiscal year • Payment Detail Report for the Period July – January 2026 Attachment:
California Choice Energy Authority Preliminary, Unaudited Financial Statements and Payment Detail as of January 31, 2026
8 Item 2
Treasurer’s Report
CALIFORNIA CHOICE ENERGY AUTHORITY
PRELIMINARY & UNAUDITED
STATEMENT OF NET POSITION
As of January 31, 2026
ASSETS
Cash $3,998,207
Member Cash Deposits for Energy Payments 6,328,994
Receivables:
Accounts Receivable 20,185
Due from Members 9,000
TOTAL ASSETS $10,356,385
LIABILITIES
Current Liabilities
Accounts Payable $0
RCB Credit Card 642
Due to City of Lancaster 2,659
Member Advance Deposits for Energy 6,328,994
Supplier Collateral Deposits 2,007,050
Total Current Liabilities $8,339,345
TOTAL LIABILITIES $8,339,345
NET POSITION
Reserve for Energy Purchase $528,690
Reserve for Future Operational Costs 678,880
Reserve for Emergencies 678,880
Change in Net Position 130,590
TOTAL NET POSITION $2,017,040
2 9
Item 2 Attachment
Item 2
Treasurer’s Report
CALIFORNIA CHOICE ENERGY AUTHORITY
PRELIMINARY & UNAUDITED
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION Period Ended January 31, 2026
OPERATING REVENUES
Associate Member Fees – Apple Valley $114,588
Associate Member Fees – Lancaster 292,456
Associate Member Fees – Palmdale 250,176
Associate Member Fees – Pico Rivera 102,199
Associate Member Fees – Pomona 206,208
Associate Member Fees – Rancho Mirage 138,659
Associate Member Fees – San Jacinto 88,302
Associate Member Fees – Santa Barbara 165,173
TOTAL OPERATING REVENUES $1,357,760
NONOPERATING REVENUE
Misc. Revenue $ 9,568
Sponsorship Revenue 57,150
Interest Income 103,719
TOTAL REVENUE $1,528,197
OPERATING EXPENSES
Professional Services $566,897
Legal Services 208,518
Memberships & Dues 390,200
Workshop/Seminars/Travel 3,185
Promotion & Advertising 52,453
All Member Meeting 68,983
Insurance Expense 14,094
Software & Support 7,368
Other Expenses 1,908
Administrative Overhead 84,000
TOTAL OPERATING EXPENSES $1,397,607
NET RESULTS OF OPERATIONS $130,590
3 10
Item 2
Treasurer’s Report
CALIFORNIA CHOICE ENERGY AUTHORITY
PRELIMINARY & UNAUDITED
BUDGET TO ACTUALS COMPARISON
Period Ended January 31, 2026
BUDGET ACTUALS VARIANCE
$
VARIANCE
%
REVENUE $2,850,521 $1,528,197 $1,322,32 46.39%
OPERATING EXPENSES
Professional Services $1,192,600 $566,897 625,703 52.47% Legal Services 525,000 208,518 316,482 60.28%
Memberships & Dues 522,025 390,200 131,825 25.25%
Workshop/Seminars/Trav 30,000 3,185 26,815 89.38%
Promotion & Advertising 135,160 52,453 82,707 61.19%
All Member Meeting 60,000 68,983 (8,893) (14.97)
Insurance Expense 20,000 14,094 5,906 29.53%
Software & Support 11,450 7,368 4,082 35.65%
Other Expenses 0 1,908 (1,908)
CalChoice Board Admin 50,000 0 50,000 100%
Program Development 25,000 0 25,000 100%
Administrative Overhead 144,285 84,000 60,285 41.78%
TOTAL OPERATING EXPENSES $2,715,520 $1,397,607 1,317,913 48.53% CHANGE IN NET POSITION $135,001 $130,591 $4,410 3.27%
4 11
California Choice Energy Authority
Payment Detail Report
July 2025 - January 2026
Payment
Date Vendor Invoice Number Amount
7/7/25 Direct Energy CAISO20250702 $ 691,783.55
7/8/25 Bayshore Consulting Group, Inc. Multiple 117,951.11 7/11/25 California Public Utilities Commission E-4195-200 123,076.80 7/11/25 Deveau Burr Group LLC 964 6,500.00
7/11/25 Direct Energy CAISO20250709 686,800.55
7/18/25 Direct Energy CAISO20250716 585,607.75
7/18/25 Enersponse LLC INV526 107,500.00
7/18/25 ES 1B Group 1, LLC ES1B RA 06.25 308,000.00
7/18/25 Leapfrog 0750 77,941.80
7/18/25 Minuteman Press Multiple 943.59
7/18/25 Minuteman Press Multiple 1,212.21
7/18/25 OCPA - Orange County Power Authority 1097 1,092,500.00 7/18/25 Powerex 51395287 135,609.50
7/18/25 Resi Station LLC Multiple 61,429.50
7/18/25 Sentinel Energy Center LLC 202510-SEC-CCEA 1,431,000.00 7/25/25 Direct Energy CAISO20250723 968,244.53
7/25/25 Karbone Inc. INVKARE-2228 171,500.00
7/29/25 Braun Blaising & Wynne P C 22729 27,810.63
7/29/25 BRB Law LLP 2963 1,551.38
7/29/25 CalCCA 2961 130,000.00
7/29/25 Calpine Energy Solutions - Data Mgmt 2.5192E+14 372,862.20 7/29/25 Frontier 197994 2,059.50
7/29/25 Frontier 196940 7,782.50
7/29/25 Hall Energy Law PC 2020011078 4,355.00
7/29/25 Keyes & Fox LLP Multiple 4,062.00
7/29/25 Lancaster 2026001LE 890,473.28
7/29/25 Maher Accountancy 27263 20,600.00
7/29/25 Minuteman Press 80236 473.03
7/29/25 PEA 1413 160,000.00
7/29/25 Special District Risk Management Authority 78917 50.00 7/29/25 STRADLING YOCCA CARLSON & RAUTH LLP 421795 2,360.00 7/29/25 Tripepi Smith 15032 8,112.50
8/4/25 Alliant Insurance Services Inc. 3182002 370.00
8/4/25 Alliant Insurance Services Inc. 3175775 3,363.00 8/4/25 Deveau Burr Group LLC 1025 6,500.00
8/4/25 Direct Energy CAISO20250730 885,940.40
12 Payment
Date Vendor Invoice Number Amount
8/4/25 Minuteman Press 80334 243.47
8/4/25 Minuteman Press 80151 446.74
8/7/25 Bayshore Consulting Group, Inc. Multiple 106,575.04 8/7/25 Direct Energy CAISO20250806 717,631.47
8/15/25 Direct Energy CAISO20250813 199,295.22
8/18/25 Enersponse LLC INV546 215,000.00
8/18/25 ES 1B Group 1, LLC ES1B RA 07.25 308,000.00
8/18/25 Leapfrog 0755 77,941.80
8/18/25 Powerex 51401626 135,609.50
8/18/25 Resi Station LLC Multiple 108,819.20
8/18/25 Sentinel Energy Center LLC 202511-SEC-CCEA 232,500.00 8/18/25 Tullet Prebon Americas Corp 08609-5093960625-00 1,092.00 8/25/25 Direct Energy CAISO20250820 933,437.85
8/28/25 Braun Blaising & Wynne P C 22789 22,342.05
8/28/25 BRB Law LLP 3055 1,529.50
8/28/25 Calpine Energy Solutions - Data Mgmt 2.5224E+14 375,272.43 8/28/25 Direct Energy CAISO20250827 1,095,360.74
8/28/25 Frontier 198272 1,007.00
8/28/25 Hall Energy Law PC 2020011089 4,160.00
8/28/25 Lancaster 2026002LE 161,060.38
8/28/25 Maher Accountancy 27304 20,600.00
8/28/25 Minuteman Press 80759 250.28
8/28/25 Minuteman Press 80462 533.31
8/28/25 PEA 1420 160,000.00
8/28/25 Tripepi Smith 15227 8,688.75
9/5/25 Direct Energy CAISO20250903 724,457.95
9/11/25 Bayshore Consulting Group, Inc. Multiple 106,379.69 9/12/25 Direct Energy CAISO20250910 1,466,857.95
9/18/25 HJ Promotional Products CalChoiceCandle 319.04
9/18/25 HJ Promotional Products CalChoiceFoldable 385.02 9/18/25 HJ Promotional Products CalChoiceCutting 1,095.02 9/18/25 HJ Promotional Products CalChoice 1,237.11
9/18/25 HJ Promotional Products CalChoiceCanvas 1,318.76 9/18/25 HJ Promotional Products CalChoicePower 1,575.93 9/18/25 Marriot 091425 51,438.32
9/19/25 Deveau Burr Group LLC 1084 6,750.00
9/19/25 Direct Energy CAISO20250917 1,449,614.51
9/19/25 Enersponse LLC INV573 215,000.00
9/19/25 ES 1B Group 1, LLC ES1B RA 08.25 308,000.00
9/19/25 Keyes & Fox LLP 30419 2,680.00
13 Payment
Date Vendor Invoice Number Amount
9/19/25 Keyes & Fox LLP 30364 6,968.00
9/19/25 Leapfrog 0796 77,941.80
9/19/25 Powerex 51406991 135,609.50
9/19/25 Resi Station LLC Multiple 211,114.80
9/19/25 Sentinel Energy Center LLC 202512-SEC-CCEA 232,500.00 9/29/25 Braun Blaising & Wynne P C 22857 20,037.88
9/29/25 BRB Law LLP 3146 2,320.13
9/29/25 CalCCA 2994 14,887.00
9/29/25 Calpine Energy Solutions - Data Mgmt 2.5258E+14 370,573.75 9/29/25 Direct Energy CAISO20250924 784,116.99
9/29/25 Frontier 198452 1,164.75
9/29/25 Hall Energy Law PC 2020011099 4,550.00
9/29/25 Maher Accountancy 27364 20,600.00
9/29/25 Minuteman Press 80981 250.28
9/29/25 Minuteman Press 81233 556.45
9/29/25 PEA 1427 160,000.00
9/29/25 STRADLING YOCCA CARLSON & RAUTH LLP 423275 2,040.00 9/29/25 Tripepi Smith 15417 9,683.75
10/6/25 Direct Energy CAISO20251001 894,881.64
10/9/25 Bayshore Consulting Group, Inc. Multiple 108,188.33 10/14/25 Deveau Burr Group LLC 1147 6,500.00
10/14/25 Direct Energy CAISO20251008 962,830.70
10/15/25 3 Degrees 3DINV-56688 96,750.00
10/17/25 Clean Energy Alliance CLEA09-2025 120,000.00
10/17/25 Direct Energy CAISO20251015 226,717.92
10/17/25 Enersponse LLC INV598 215,000.00
10/17/25 Equus Energy Group LLC 1018-092025 11,400.00
10/17/25 ES 1B Group 1, LLC ES1B RA 09.25 308,000.00
10/17/25 Leapfrog 0812 77,941.80
10/17/25 MCE Clean Energy CCEA-0925 418,500.00
10/17/25 Powerex 51413398 135,609.50
10/17/25 Resi Station LLC Multiple 352,552.00
10/17/25 Sentinel Energy Center LLC 202601-SEC-CCEA 1,431,000.00 10/27/25 Direct Energy CAISO20251022 481,076.78
10/27/25 OCPA - Orange County Power Authority 1106 120,000.00 10/29/25 Alliant Insurance Services Inc. Multiple 55,676.00 10/29/25 amerex brokers llc 1003720724 16,625.00
10/29/25 amerex brokers llc 1002510724 16,625.00
10/29/25 Braun Blaising & Wynne P C 22921 18,858.32
10/29/25 CalCCA 2996 130,000.00
14 Payment
Date Vendor Invoice Number Amount
10/29/25 Calpine Energy Solutions - Data Mgmt 2.5286E+14 371,328.68 10/29/25 CliftonLarsonAllen LLP L251622733 210.00
10/29/25 Hall Energy Law PC 2020011111 11,830.00
10/29/25 Keyes & Fox LLP 30503 2,192.00
10/29/25 Maher Accountancy 27498 20,600.00
10/29/25 Minuteman Press 81589 192.84
10/29/25 Minuteman Press 81837 253.93
10/29/25 PEA 1434 163,585.87
10/29/25 Special District Risk Management Authority 79484 50.00 10/29/25 STRADLING YOCCA CARLSON & RAUTH LLP 424180 2,337.50 10/29/25 Tripepi Smith 15614 8,666.10
11/3/25 NRG Power Marketing CAISO20251029 463,939.16
11/7/25 Minuteman Press Multiple 412.40
11/7/25 NRG Power Marketing CAISO20251105 409,375.59
11/12/25 Docusign 1.11101E+11 2,760.00
11/17/25 City of San Jacinto 5595 60,000.00
11/17/25 Deveau Burr Group LLC 1205 6,500.00
11/17/25 Direct Energy CAISO20251112 455,448.00
11/17/25 Enersponse LLC INV620 107,500.00
11/17/25 ES 1B Group 1, LLC ES1B RA 10.25 308,000.00
11/17/25 Leapfrog 0832 58,824.00
11/17/25 MCE Clean Energy CCEA-1025 40,000.00
11/17/25 Powerex 51420856 135,640.50
11/17/25 Resi Station LLC Multiple 63,924.00
11/17/25 Sentinel Energy Center LLC 202602-SEC-CCEA 232,500.00 11/20/25 Bayshore Consulting Group, Inc. Multiple 107,008.36 11/24/25 NRG Power Marketing CAISO20251119 443,428.29
11/25/25 Braun Blaising & Wynne P C 22974 11,258.17
11/25/25 BRB Law LLP 3370 60.38
11/25/25 BRB Law LLP 3305 739.50
11/25/25 Calpine Energy Solutions - Data Mgmt 2.5317E+14 372,532.29 11/25/25 City of Palmdale 2026005PALM 567,439.52
11/25/25 City of Pico Rivera 2026005PR 18,737.19
11/25/25 City of San Jacinto 2026005SJP 69,185.58
11/25/25 Frontier Multiple 3,992.00
11/25/25 Hall Energy Law PC 2020011122 20,215.00
11/25/25 Langan Engineering 90067163 2,914.28
11/25/25 Maher Accountancy 27648 20,600.00
11/25/25 Minuteman Press 82065 224.48
11/25/25 Minuteman Press Multiple 3,508.21
15 Payment
Date Vendor Invoice Number Amount
11/25/25 PEA 1441 175,500.00
11/25/25 Tripepi Smith 15912 10,625.45
11/26/25 CliftonLarsonAllen LLP L251708280 10,500.00
12/3/25 NRG Power Marketing CAISO20251126 504,108.64
12/4/25 Bayshore Consulting Group, Inc. Multiple 107,110.57 12/8/25 NRG Power Marketing CAISO20251203 386,914.01
12/10/25 CliftonLarsonAllen LLP L251766532 9,975.00
12/12/25 Optimization Solutions 1453 5,334.00
12/12/25 Optimization Solutions 1449 6,587.00
12/12/25 Optimization Solutions 1456 7,766.00
12/12/25 Optimization Solutions 1452 8,447.00
12/12/25 Optimization Solutions 1458 11,415.00
12/12/25 Optimization Solutions 1457 18,295.00
12/12/25 Optimization Solutions 1455 22,506.00
12/12/25 Optimization Solutions 1454 35,367.00
12/19/25 Deveau Burr Group LLC 1268 6,750.00
12/19/25 Enersponse LLC INV633 107,500.00
12/19/25 ES 1B Group 1, LLC ES1B RA 11.25 308,000.00
12/19/25 Leapfrog 0848 58,824.00
12/19/25 NRG Power Marketing CAISO20251217 710,846.97
12/19/25 Powerex Multiple 201,887.50
12/19/25 Resi Station LLC Multiple 11,460.00
12/19/25 Sentinel Energy Center LLC 202603-SEC-CCEA 232,500.00 12/19/25 Tullet Prebon Americas Corp 08609-5373571125-00 12,000.00 12/29/25 BRB Law LLP 3511 129.38
12/29/25 CalCCA 3040 12,011.51
12/29/25 Calpine Energy Solutions - Data Mgmt 2.5344E+14 370,591.84 12/29/25 City of Palmdale 2026006PALM 230,917.85
12/29/25 City of San Jacinto 5597 12,000.00
12/29/25 Hall Energy Law PC 2020011132 10,595.00
12/29/25 Lancaster 2026006SBCE 42,439.06
12/29/25 Maher Accountancy 27834 21,280.00
12/29/25 Minuteman Press Multiple 815.86
12/29/25 NRG Power Marketing CAISO20251224 572,268.67
12/29/25 PEA 1459 162,500.00
12/29/25 Pomona - PCE 2026006POM 210,864.92
12/29/25 STRADLING YOCCA CARLSON & RAUTH LLP 426164 1,430.00 12/29/25 STRADLING YOCCA CARLSON & RAUTH LLP 425085 3,120.00 12/29/25 Tripepi Smith 16156 11,550.00
1/5/26 NRG Power Marketing CAISO20251231 404,822.21
16 Payment
Date Vendor Invoice Number Amount
1/13/26 CliftonLarsonAllen LLP L261011860 6,615.00
1/13/26 NRG Power Marketing CAISO20260107 342,261.23
1/14/26 Bayshore Consulting Group, Inc. Multiple 104,301.02 1/16/26 Deveau Burr Group LLC 1329 6,500.00
1/16/26 Enersponse LLC INV651 107,500.00
1/16/26 ES 1B Group 1, LLC ES1B RA 12.25 308,000.00
1/16/26 Leapfrog 0859 58,824.00
1/16/26 NRG Power Marketing CAISO20260114 413,467.90
1/16/26 Powerex Multiple 301,971.00
1/16/26 Resi Station LLC Multiple 10,380.00
1/16/26 Sentinel Energy Center LLC 202604-SEC-CCEA 1,431,000.00 1/16/26 Tullet Prebon Americas Corp 08609-5427121225-00 13,200.00 1/23/26 NRG Power Marketing CAISO20260121 296,413.01
1/29/26 Braun Blaising & Wynne P C 23034 13,193.87
1/29/26 Braun Blaising & Wynne P C 23085 20,281.04
1/29/26 CalCCA 3047 130,000.00
1/29/26 Calpine Energy Solutions - Data Mgmt 2.6009E+14 371,206.89 1/29/26 City of San Jacinto 5598 12,000.00
1/29/26 Frontier 199443 1,778.50
1/29/26 Hall Energy Law PC 2020011141 14,430.00
1/29/26 Maher Accountancy 27900 21,280.00
1/29/26 Minuteman Press 83280 163.03
1/29/26 Minuteman Press 83043 221.16
1/29/26 Minuteman Press 83119 239.32
1/29/26 NRG Power Marketing CAISO20260128 393,356.86
1/29/26 PEA 1466 165,241.82
1/29/26 STRADLING YOCCA CARLSON & RAUTH LLP 427125 9,370.50 1/29/26 Tripepi Smith 16328 10,611.25
TOTAL $ 40,749,757.07
17 STAFF REPORT
California Choice Energy Authority
2/17/26
RJ
Date: February 17, 2026
To: Chair Harris and Authority Members
From: Rob Johnson, Interim Chief Executive Officer
Item 3: Consider Adoption of Resolution Setting the Regular Meeting Schedule and Location of the California Choice Energy Authority and Establishing the Policy of Rotation of the Board Chair and Vice Chair Positions Recommendation:
Adopt Resolution Setting the Regular Meeting Schedule and Location of the California Choice Energy Authority and Establishing the Policy of Rotation of the Board Chair and Vice Chair Positions.
Fiscal Impact:
There is no fiscal impact to California Choice Energy Authority (CalChoice).
Background:
At its Special Meeting on November 13, 2025, the CalChoice Board discussed options regarding Board meeting location and Chair and Vice Chair rotation. At that meeting the Board directed staff to return to the Board with a resolution that establishes the meeting location and Chair/Vice Chair rotation to be based on the dates agencies joined CalChoice.
With regards to the regular Board meeting schedule, the meetings will continue to be held the 3rd Tuesday at 1pm, in February, May, August and November. The new rotation will be effective with the August 18, 2026, meeting, to be held in Pico Rivera.
With regards to the Chair/Vice Chair rotation, the next positions to be considered by the Board based on date joined would be Steve Carmona, Pico Rivera, Chair and Tom Prill, San Jacinto, Vice Chair. The appointment of the Chair/Vice Chair is to occur at the May 2026 meeting.
Attachment:
Resolution Setting the Regular Meeting Schedule and Location of the California Choice Energy Authority and Establishing the Policy of Rotation of the Board Chair and Vice Chair Positions. 18 RESOLUTION NO. 2026-______
RESOLUTION OF THE CALIFORNIA CHOICE ENERGY
AUTHORITY SETTING THE REGULAR MEETING
SCHEDULE AND LOCATION OF THE CALIFORNIA CHOICE
ENERGY AUTHORITY AND ESTABLISHING THE POLICY
OF ROTATION OF THE BOARD CHAIR AND VICE CHAIR
POSITIONS
WHEREAS, the California Choice Energy Authority (“Authority”) is a joint exercise of powers authority created under the Joint Exercise of Powers Act (California Government Code Section 6500, et seq.) by that certain agreement dated August 14, 2012, and originally entitled “Joint Exercise of Powers Agreement Relating to the California Choice Energy Authority (“JPA Agreement”); and
WHEREAS, the Authority adopted its Fourth Amended and Restated Bylaws on May 21, 2024 (“Bylaws”); and
WHEREAS, the Authority desires to establish its regular meeting schedule and location; and
WHEREAS, the Authority desires to establish a policy and practice of rotating the Chair and Vice Chair positions among the members.
NOW, THEREFORE, THE BOARD OF THE CALIFORNIA CHOICE ENERGY AUTHORITY, DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS:
Section 1 - Recitals. The foregoing recitals are true and correct.
Section 2 – Chair and Vice Chair positions. Commencing July 1, 2026, as a matter of policy and practice, the Board declares its intent to rotate the Chair and Vice Chair positions among its members in the order in which they joined the Authority, as set forth on Exhibit A hereto. Nothing in this Resolution shall prohibit any Board member from nominating any other Board member for the position of Chair or Vice Chair at any duly held election pursuant to the Joint Powers Agreement and Bylaws, as the same may be amended from time to time.
Section 3 - Regular Meeting Dates. Commencing July 1, 2026, the Authority Board of Directors shall hold its regular meetings at 1:00 p.m. on the following dates:
19 Item 3 Attachment
Resolution No. 2026 - _______
Date
3rd Tuesday of August
3rd Tuesday of November
3rd Tuesday of February
3rd Tuesday of May
Section 4 – Regular Meeting Locations. Commencing July 1, 2026, the Authority Board of Directors shall rotate the location of its regular board meetings among the council chambers of its members in the order in which they joined the Authority, as set forth on Exhibit A hereto, commencing with City of Pico Rivera.
Section 5 - Effective Date. This resolution shall take effect immediately upon its adoption.
PASSED, APPROVED, and ADOPTED this __ day of _______, 2026, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
____________________________ ____________________________
SUSAN CAPUTO GEORGE HARRIS
Secretary Chair
California Choice Energy Authority California Choice Energy Authority 20 Resolution No. 2026 - _______
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF LANCASTER )
CERTIFICATION OF RESOLUTION
CALIFORNIA CHOICE ENERGY AUTHORITY
I, ______________________, do hereby certify that this is a true and correct copy of the original Resolution No. 2026- ______ for which the original is on file in my office.
WITNESS MY HAND on this _________ day of _________, ________. 21 Resolution No. 2026 - _______
EXHIBIT A
[include address of council chambers]
MEMBER AGENCY JOIN DATE CITY COUNCIL
CHAMBERS ADDRESS
City of Lancaster 2015 44933 Fern Ave
Lancaster, CA 93534
City of Pico Rivera 2017 6615 Passons Blvd
Pico Rivera, CA 90660
City of San Jacinto 2018 595 S. San Jacinto Ave.
San Jacinto, CA 92583
City of Rancho Mirage 2018 69825 Highway 111
Rancho Mirage, CA 92270
Town of Apple Valley 2019 14955 Dale Evans Pkwy
Apple Valley, CA 92307
City of Pomona 2020 505 S. Garey Ave
Pomona, CA 91766
City of Santa Barbara 2021 735 Anacapa St
Santa Barbara, CA 93101
City of Palmdale 2022 38300 Sierra Hwy, Suite B
Palmdale, CA 93550
22 STAFF REPORT
California Choice Energy Authority
2/17/26
RJ
Date: February 17, 2026
To: Chair Harris and Authority Members
From: Barbara Boswell, Treasurer
Item 4: Receive and File California Choice Energy Authority Audited Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025 Recommendation:
Receive and file California Choice Energy Authority Audited Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025.
Fiscal Impact:
There is no fiscal impact to California Choice Energy Authority (CalChoice).
Background:
CalChoice engaged the services of CliftonLarsonAllen LLP to perform the audit of the financial report for the period July 1, 2024, through June 30, 2025. The goal of the independent audit is to provide reasonable assurance that the financial statements of CalChoice for the fiscal year are free of material misstatement.
As part of CalChoice’s annual audit, reviews are made to determine the adequacy of the internal control structure as well as to determine that CalChoice has complied with applicable laws and regulations. The Statement of Auditing Standards (SAS) No. 115, Communication of Internal Control Related Matters Identified in an Audit received from the auditor states that there were no material instances of noncompliance, no material weaknesses in internal controls, and no reportable conditions. The Report to the Board of Directors, SAS No. 114 (Attachment B), indicates there were no items of concern to report.
The independent auditor concluded there was a basis for rendering an unmodified opinion and the CalChoice financial statements are fairly presented in conformity with Generally Accepted Accounting Principles (GAAP). The independent auditor’s report is presented as the first component of the financial section of this Report.
Staff is pleased to inform the Board that the ACFR for the fiscal year ending June 30, 2024, CalChoice received the Certificate of Achievement in Financial Reporting from the Government Finance Officers Association (GFOA). Finally, CalChoice will be submitting the ACFR for the fiscal year ending June 30, 2025, to the GFOA for consideration. 23 Item 4
ACFR June 30, 2025
2 Attachment:
Attachment A - California Choice Energy Authority Audited Annual Comprehensive Financial Report as of June 30, 2025
Attachment B – Governance Communications Letter from CliftonLarsonAllen LLP Attachment C – Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
24 25 Item 4 Attachment A
26 CALIFORNIA CHOICE ENERGY AUTHORITY
LANCASTER, CALIFORNIA
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2025
PREPARED BY THE FINANCE DEPARTMENT
27 CALIFORNIA CHOICE ENERGY AUTHORITY
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL I
ORGANIZATIONAL CHART VI
AUTHORITY OFFICIALS AND STAFF VII
CERTIFICATE OF ACHIEVEMENT VIII
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 4
BASIC FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 8
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 9 STATEMENT OF CASH FLOWS 10
NOTES TO BASIC FINANCIAL STATEMENTS 11
STATISTICAL SECTION
NET POSITION BY COMPONENT 15
CHANGES IN NET POSITION BY COMPONENT 16
POWER SUPPLY COSTS BY MEMBER CCA 17
NUMBER OF CUSTOMER ACCOUNTS BY MEMBER CCA 18
28 44933 Fern Avenue | Lancaster, CA 93534 | 1(888) 639-2411 | CaliforniaChoiceEnergyAuthority.com 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 Clean Energy
December 15, 2025
Honorable Chair and Members of the Board of Directors:
We are pleased to present to you the Annual Comprehensive Financial Report (ACFR) of the California Choice Energy Authority (CalChoice) for the fiscal year ending June 30, 2025. This report has been prepared by and all responsibility for the accuracy and completeness of the presentation, including all disclosures rest with CalChoice staff. This report encompasses a detailed overview of the Authority's Member Agencies’ financial position and activities during the fiscal year.
To provide a reasonable basis for making representations about the financial statements, CalChoice has established a comprehensive internal control framework. This framework is designed to protect the assets of the Authority’s Member Agencies from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of CalChoice’s financial statements.
It is important to acknowledge that internal control systems have inherent limitations. Because the cost of a control should not exceed its expected benefit, internal controls are designed to provide reasonable, rather than absolute, assurance that the financial statements are free of material misstatement. This means that while CalChoice strives for accuracy and completeness in its financial reporting, there is a possibility that some errors or omissions may occur.
CalChoice is committed to transparency and accountability in all its financial dealings. This report is a testament to that commitment, providing a comprehensive and clear account of our financial status, including our assets, liabilities, revenues, expenditures, and investments. It is designed to provide our stakeholders, including our member agencies, customers, and the general public, with a complete and accurate picture of our financial health and stability.
The ACFR is organized into three sections: the Introductory Section, the Financial Section, and the Statistical Section.
• The Introductory Section includes this transmittal letter, the Authority's organizational chart, and a list of principal officials.
• The Financial Section includes the independent auditor's report, management's discussion and analysis, basic financial statements, required supplementary information, combined and individual fund financial statements and schedules.
• The Statistical Section includes selected financial and demographic information, presented on a multi-year basis.
For a comprehensive analysis of the Authority's financial performance, we encourage readers to refer to Management's Discussion and Analysis in the Financial Section.
Docusign Envelope ID: FEA026A5-946B-472C-84CC-FA8A4E52C763 29 In 2012, Lancaster City Council adopted Resolution 12-59, forming the California Clean Energy Authority (“Authority”), a Joint Powers Agreement (“JPA”) with the City of San Jacinto with the purpose of expanding solar partnerships and designating the City of Lancaster City Council to serve the Authority Board.
In March of 2017, Lancaster City Council adopted Resolution No. 02-17, adopting the first amendment to the JPA Agreement. The amendment changed the name of the JPA to California Choice Energy Authority to better reflect the Authority’s purpose.
The Authority currently has eight associate members (“Members”):
• The City of Lancaster (Lancaster Energy)
• City of San Jacinto (San Jacinto Power)
• City of Pico Rivera (Pico Rivera Innovative Municipal Energy) • City of Ranch Mirage (Rancho Mirage Energy Authority) • Town of Apple Valley (Apple Valley Choice Energy)
• City of Pomona (Pomona Choice Energy)
• City of Santa Barbara (Santa Barbara Clean Energy)
• City of Palmdale (Energy for Palmdale’s Independent Choice).
On January 9, 2024, a Second Amendment to the JPA was approved, which changed the composition of the Board of Directors to include the City Manager, or a designee, from each member agency. This action acknowledged the evolution of the Authority and its member agencies, resulting in a Board that more effectively represents its members. The appointment of the new Board, comprised of representatives from each member agency, was completed at the May 21, 2024, Board meeting.
Following the departure of Jason Caudle, who had served as CEO since CalChoice's inception, the Board of Directors appointed Rob Johnson, City Manager of the City of San Jacinto, as the Interim Chief Executive Officer. This appointment became effective on July 1, 2025. Mr. Johnson will continue to serve in an interim capacity while the Board gives consideration for how it will fill the position on a permanent basis.
This ACFR incorporates all Authority funds, including the separate Member Agencies under the direction of the Authority Board. CalChoice offers Member Agencies numerous benefits, all focused toward supporting operations of their Community Choice Aggregation (CCA) programs, which acquire power on behalf of their citizenry. These benefits include the promotion of greater renewable energy use, control over local energy rates, local energy efficiency programming, and encouraging local job creation.
The Authority provides a broad range of services associated with CCA operational support on behalf of its Member Agencies and its customers. These services include:
• Program Implementation - Development and implementation of CCA technical, regulatory, and operational support programs benefiting our Member Agencies and their customers including:
o Power Choice Program: This Distributed Microgrids program has been designed to allow community choice aggregators to capture the revenue and supply created by behind the meter solar plus storage. Through a partnership with Participate Energy, Tesla, and local certified installers, Residential and Commercial customers that elect to participate in the Docusign Envelope ID: FEA026A5-946B-472C-84CC-FA8A4E52C763 30 program are eligible to have rooftop solar panels connected to a battery energy storage system installed with no credit qualification necessary and zero upfront cost. o Power Choice CARE Program: An important initiative during the recently completed fiscal year was the expansion of the Power Choice Program, to serve income-qualified residents. The Power Choice CARE program leverages state funding to provide eligible customers with solar and battery systems at no cost, resulting in an estimated 55% reduction in electricity bills. The program has reserved over $2.27 million in Self-Generation Incentive Program (SGIP) project funding for CARE customers across six member agencies.
As of July 2025, the program has actively engaged 442 customers, with 99 applications submitted for SGIP funding, demonstrating significant progress in providing renewable energy benefits directly to the community.
o Energy Efficiency Direct Install "Elect to Administer" Program: This new program will provide an estimated $2 million in annual funding over a three-year period for energy efficiency upgrades across the joint CCAs. Following program development, CalChoice filed an Advice Letter with the CPUC on July 9, 2025, to request funding and plan approval. Once approved, an RFP will be released to select a third-party implementer to manage the program.
o Demand Response Programs: CalChoice is developing programs to leverage customer-owned Distributed Energy Resources (DERs)—like solar, batteries, and EV chargers—for grid resilience. An RFP is being used to explore three offerings: Behavioral, Automatic Demand Response, and Critical Peak Pricing.
These programs will provide customer incentives for participation and reduce electrical load during peak events, benefitting CCAs. By lowering overall customer demand during these "called events," CCAs can reduce the need to purchase expensive power on the volatile open market, which may help avoid financial exposure during extreme weather. o Disadvantaged Community-Green Tariff (DAC-GT): In 2018, CPUC provided a “capacity allocation” to all eligible load serving entities to participate in the DAC-GT program. This joint program for Lancaster Energy, PRIME, and San Jacinto Power will provide a 20% bill discount and 100% renewable energy to eligible low-income customers at no additional cost. The system is currently under construction with an anticipated commercial operation date of March 31, 2026, followed by program launch in April 2026.
o Equitable Building Decarbonization Direct Install Program (EBD): As a partner in the SoCal EBD Coalition, which was awarded a $329 million grant from the California Energy Commission (CEC), CalChoice will help facilitate residential energy efficiency upgrades at little-to-no cost for customers. This five-year program, which aims to accelerate residential building decarbonization in Southern California within historically underserved disadvantaged communities, is administered by Los Angeles County and will begin deployment in Fall 2025. The program’s initial focus is on Apple Valley, Docusign Envelope ID: FEA026A5-946B-472C-84CC-FA8A4E52C763 31 Lancaster, Pico Rivera, and Pomona, as these territories were specifically selected for having the highest concentration of disadvantaged and low-income households. • Regulatory and Legislative Advocacy – Representation of its members' interests at the state and local level, advocating for policies and regulations that support the growth and success of CCA programs.
• Power Procurement – Assistance with ensuring its members can secure reliable and cost-effective energy supply from a variety of sources, including renewable and clean energy. • Risk Management - Risk management services to help its members navigate the uncertainties and complexities of the energy market.
• Financial Services – Expertise in areas including budgeting, financial planning, and reporting to ensure the financial sustainability of its members' CCA programs. • Customer Services – Support to Member Agencies including billing, customer inquiries, and dispute resolution.
• Community Outreach and Marketing – Assistance in promoting the CCA program to the community, educating the public about the benefits of the program, and encouraging participation.
• Operational Support – Encompasses a range of operational support services, including data management, compliance reporting, and program administration.
CliftonLarsonAllen, LLP, a Certified Public Accountant firm selected by the City Council and CalChoice Board to perform the audit of the financial statements for the fiscal year ended June 30, 2025, has audited the Authority’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Authority are free from material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon the audit that there is a reasonable basis for rendering an unmodified opinion that California Choice Energy Authority’s financial statements for fiscal year ended June 30, 2025, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report.
The Government Finance Officers Association of the United States and Canada (GFOA) has recognized the Authority for its Annual Comprehensive Financial Report (ACFR) thru the award of its Certificate of Achievement for Excellence in Financial Reporting in each of the previous two years. The Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting, acknowledging conformance with the highest standards for preparation of state and local government financial reports.
To be awarded this Certificate, the Authority must publish an easily readable and efficiently organized ACFR that satisfies both Generally Accepted Accounting Principles (GAAP) and applicable legal Docusign Envelope ID: FEA026A5-946B-472C-84CC-FA8A4E52C763 32 requirements. CalChoice believes the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2025, continues to conform to the Certificate of Achievement Program's requirements, and we plan to submit this report to the GFOA for review.
The preparation of this report would not have been possible without the dedicated services of the entire staff of CalChoice. We would also like to express our appreciation to the Authority's Board of Directors for their unfaltering support and guidance.
In closing, we hope that this report provides you with a thorough and understandable overview of CalChoice's financial activities for the past fiscal year. We are proud of the financial stability and integrity that this report reflects and remain committed to continuing to serve our stakeholders with transparency and accountability.
______________________ ______________________
Robert Johnson Barbara Boswell
Interim Chief Executive Officer Treasurer
Docusign Envelope ID: FEA026A5-946B-472C-84CC-FA8A4E52C763 33 (vi)
34 (vii)
CALIFORNIA CHOICE ENERGY AUTHORITY
BOARD MEMBERS
George N. Harris II City of Lancaster Chair
Alelia Parenteau City of Santa Barbara Vice Chair
Janelle Samson City of Palmdale Board Member
Steve Carmona City of Pico Rivera Board Member
Chris Diggs City of Pomona Board Member
Jessica Pulliam City of Rancho Mirage Board Member
Thomas Prill City of San Jacinto Board Member
Douglas B. Robertson Town of Apple Valley Board Member
CALCHOICE STAFF
Robert Johnson Interim Chief Executive Officer
Barbara Boswell Treasurer
Cathy DeFalco General Manager
Tammie Holladay Accounting Manager
Kathy Wells Energy Programs Manager
Kevin Tonoian Procurement and Regulatory Compliance Analyst Susan Caputo Board Secretary
35 (viii)
36 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT
Board of Directors
California Choice Energy Authority
Lancaster, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the California Choice Energy Authority (the Authority), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Authority as of June 30, 2025, and the changes in financial position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 37 Board of Directors
California Choice Energy Authority
(2)
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
38 Board of Directors
California Choice Energy Authority
(3)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis be presented to supplement the basic financial statements.
Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with generally accepted auditing standards (GAAS), which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinion on the basic financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2025 our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness on the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Irvine, California
December 15, 2025
39 CALIFORNIA CHOICE ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2025
(4)
The information presented in the Management’s Discussion and Analysis is intended to provide a narrative overview of the California Choice Energy Authority’s (the Authority) financial activities as of and for the fiscal year ended June 30, 2025. Please consider this information in conjunction with the accompanying basic financial statements.
Financial Highlights
The assets of the Authority exceeded its liabilities at the close of fiscal year June 30, 2025, by $1,730,031 (net position).
The Authority’s total net position increased by $222,521 in fiscal year 2024-25.
Overview of the Basic Financial Statements
This discussion and analysis is intended to serve as an introduction to the Authority’s financial statements. The Authority’s financial statements are composed of two components: (1) financial statements and (2) notes to basic financial statements.
Authority-wide Financial Statements
Statement of Net Position: The statement of net position includes all assets and liabilities. Assets and liabilities are reported at their book value, on an accrual basis, as of the statement date.
Statement of Revenues, Expenses, and Changes in Net Position: The statement of revenues, expenses, and changes in net position presents the revenues earned and expenses incurred during the year on an accrual basis.
Statement of Cash Flows: The statement of cash flows presents the inflows and outflows of cash for the year. The statement is prepared using the direct method of cash flows and therefore presents gross rather than net amounts for the year’s activities.
The notes to basic financial statements provide additional information that is essential to a full understanding of the data provided in the Authority’s financial statements. The notes to basic financial statements can be found on pages 11-14 of this report.
40 CALIFORNIA CHOICE ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2025
(5)
Financial Analysis
Summary of Net Position
June 30, 2025 and 2024
2025 2024 Change
Assets:
Current assets $ 9,544,328 $ 8,590,521 $ 953,807
Total assets 9,544,328 8,590,521 953,807
Liabilities:
Current liabilities 1,191,684 4,645,961 (3,454,277)
Noncurrent liabilities 6,622,613 2,437,050 4,185,563
Total Liabilities 7,814,297 7,083,011 731,286
Net Position:
Unrestricted 1,730,031 1,507,510 222,521
Net position $ 1,730,031 $ 1,507,510 $ 222,521
As noted earlier, net position may serve over time as a useful indicator of the Authority’s financial position. In the case of the Authority, assets exceeded liabilities by $1,730,031 at June 30, 2025.
Current assets increased due to an increase in cash of $1,450,660 primarily due to collateral payments from members. Current liabilities decreased by $3,454,277 in Accounts Payable primarily due to a decrease in the accrual of large energy invoices. Long-term liabilities increased by $4,185,563 due to the addition of collateral deposits from members to cover weekly CAISO invoice payments (See Note 2 – Collateral).
Summary of Changes in Net Position
Years ended June 30, 2025 and 2024
2025 2024 Change
Operating revenues $ 2,254,292 $ 8,649,258 $ (6,394,966) Operating expenses (2,031,771) (8,151,699) 6,119,928
Operating income (loss) 222,521 497,559 (275,038)
Change in net position 222,521 497,559 (275,038)
Net position, beginning of year 1,507,510 1,009,951 498,175 Net position, end of year $ 1,730,031 $ 1,507,510 $ 222,521 41 CALIFORNIA CHOICE ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2025
(6)
In FY24/25, CalChoice changed the methodology of how revenues and expenditures are recognized.
Previously, all pass-through costs were posted as expenses to CalChoice, and the reimbursement from the members posted as revenue. In FY24/25 all pass-through costs were billed to, and reimbursed by, each member individually. Only shared costs reimbursed by members through the Administrative Services Agreement (ASA), are booked as revenues and expenditures. Due to this change, total revenues decreased by $6,119,928 from the prior fiscal year.
Operating expenses of $2,031,771 shown on the statement of revenues, expenses, and changes in net position consist of the following:
2025 2024
Professional Svcs - Members $ 1,511 $ 6,555,696
Professional Svcs - Admin 1,571,267 1,427,629
Programs 189,848 -
Insurance Premiums 16,851 15,090
Miscellaneous 252,294 153,284
Total $ 2,031,771 $ 8,151,699
Operating expenses decreased by $6,119,928, due to the changes discussed above. Prior to FY24/25, Program revenues and expenditures were included as Professional Svcs – Admin.
Expense Budget to Actuals
Budget Actuals Variance
Professional Svcs - Members - 1,511 (1,511)
Professional Svcs - Admin 1,799,885 1,571,267 228,618
Programs 206,585 189,848 16,737
Insurance Premiums 20,000 16,851 3,149
Miscellaneous 206,280 252,294 (46,041)
Total $2,232,750 $2,031,771 $200,979
Actual expenditures were less than budget by $200,979, primarily in the category of Professional Svcs – Admin. The expenses for legal fees were approximately $200,000 less than anticipated.
Next Year’s Budget
For FY 2025-26 Services - Admin is the most significant expense for CalChoice at $2,715,520 (84%) of the total budgeted expense of $3,232,549. The DAC-GT (Disadvantaged Communities - Green Tariff) and Energy Efficiency programs make up the remaining expense budget of $517.029. 42 CALIFORNIA CHOICE ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2025
(7)
Request for Information
This financial report is designed to provide a general overview of the Authority’s finances for all those with an interest in the Authority’s finances. For questions concerning any of the information provided in this report or to request additional financial information please contact:
[email protected]
[email protected]
California Choice Energy Authority
1085 Voyager Drive #1482
Tehachapi, CA 93581
43 CALIFORNIA CHOICE ENERGY AUTHORITY
STATEMENT OF NET POSITION
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(8)
ASSETS
CURRENT ASSETS
Cash $ 9,205,296
Accounts Receivable 195,145
Due from Other Governments 129,243
Prepaid Items 14,644
Total Assets $ 9,544,328
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts Payable $ 276,789
Due to Other Governments 2,659
Unearned Revenue 912,236
Total Current Liabilities 1,191,684
LONG-TERM LIABILITIES
Supplier Deposits 2,007,050
Collateral Deposits 4,615,563
Total Long-Term Liabilities 6,622,613
Total Liabilities 7,814,297
NET POSITION
Unrestricted 1,730,031
Total Net Position 1,730,031
Total Liabilities and Net Position 9,544,328 $
44 CALIFORNIA CHOICE ENERGY AUTHORITY
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(9)
OPERATING REVENUES
Sales and Service Charges 2,254,292 $
Total Operating Revenues 2,254,292
OPERATING EXPENSES
Professional Services - Members 1,511
Professional Services - Administration 1,571,267
Programs 189,848
Insurance Premiums 16,851
Miscellaneous 252,294
Total Operating Expenses 2,031,771
OPERATING INCOME 222,521
CHANGE IN NET POSITION 222,521
Net Position - Beginning of Year 1,507,510
NET POSITION - END OF YEAR $ 1,730,031
45 CALIFORNIA CHOICE ENERGY AUTHORITY
STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(10)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 7,003,370 $
Cash Paid to Suppliers for Goods and Services (5,552,710) Net Cash Provided by Operating Activities 1,450,660
NET CHANGE IN CASH 1,450,660
Cash - Beginning of Year 7,754,636
CASH - END OF YEAR $ 9,205,296
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income $ 222,521
Adjustments to Reconcile Operating Income to Net Cash
Provided by Operating Activities:
(Increase) Decrease in Assets:
Accounts Receivable (5,001)
Prepaid Items 8,097
Increase (Decrease) in Liabilities:
Accounts Payable (3,247,982)
Collateral Deposits 4,615,563
Due to Other Governments (281,054)
Unearned Revenue 74,759
Supplier Deposit (430,000)
Total Adjustments 1,228,139
Net Cash Provided by Operating Activities $ 1,450,660
46 CALIFORNIA CHOICE ENERGY AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(11)
NOTE 1 NATURE OF ORGANIZATION
The financial statements are intended to reflect the financial position and changes in the financial position attributable to the California Choice Energy Authority (the Authority).
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of the Reporting Entity
The Authority was formed on March 28, 2017 is governed by an eight member Board made up of members of the JPA. The Authority was formed to help member cities in Southern California Edison territory to participate in community choice aggregation (CCA) without having to sacrifice control often associated with joint power authorities or taking on the significant liability for a single entity community choice aggregation. Each associate City’s Council would set rates for their City, purchase their energy and contract their CCA services through existing Authority contracts which helps keep costs low and maximize revenues for each associate member. Associate members assume only those responsibilities with which their councils and staff are most comfortable and capable of handling. The Authority handles the procurement, regulatory and compliance and billing and data management for associate members.
Basis of Presentation
The Authority operates as an enterprise fund. An enterprise fund is a proprietary type fund used to account for operations (a) that are financed and operated in a manner similar to private business enterprises – where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the member agencies on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied. The accompanying financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the economic measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with these activities are included on the statement of net position. The statement of revenues, expenses, and changes in net position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Cash and Cash Equivalents
The Authority’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
47 CALIFORNIA CHOICE ENERGY AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(12)
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Accounts Receivables
The Authority’s receivables consists of funds due from other governments and CalChoice members for services and products provided.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. The consumption method of accounting is used for prepaid items.
Collateral
During fiscal year 2024-2025, four members made the decision to change payments terms to the Scheduling Coordinator to weekly. These members include Lancaster, Pomona, Rancho Mirage and Santa Barbara. The Authority remits payment for the weekly CAISO invoices on behalf of each of these members, then is reimbursed by the members the following month. To ensure there are adequate funds readily available for these invoices, each member deposited collateral with the Authority. The Member Energy Collateral is based on the average of annual CAISO invoices for each aforementioned member.
Supplier Deposits
The Authority receives deposits from energy providers for projects under construction to secure energy and resource adequacy in advance. Once the project is operational, the Authority will return the deposit.
Unearned Revenue
The Authority has unearned revenues for payments that were received in advance from customers for the subsequent period. The Authority will recognize revenue for advance customer payments in the service period in which the revenue is earned.
Net Position Assumptions
Sometimes the Authority will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.
It is the Authority’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.
Estimates
The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources at the reporting date. Accordingly, actual results could differ from those estimates.
48 CALIFORNIA CHOICE ENERGY AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(13)
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Operating Revenues and Expenses
Operating revenues, such as sales and service charges result from exchange transactions associated with the principal activity of the Authority. Operating expenses include the professional services, insurance premiums and other operating expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
NOTE 3 CASH AND INVESTMENTS
At June 30, 2025, cash and cash equivalents of $9,205,296 consist of an operating checking account and interest-earning checking account.
Investments Authorized by the California Government Code The California Government Code authorizes the Authority to invest in certain types of investments. The table below identifies these investment types and the related maximum percentages by the California Government Code. The table also identifies certain provisions of the California Government Code that address interest rate risk and concentration of credit risk.
Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer U.S. Treasury Securities None None None
U.S. Government-Sponsored Agency
Securities None None None
Certificates of Deposit None None None
Money Market Mutual Funds N/A None 10%
Local Agency Investment Fund None None $75,000,000
At June 30, 2025, the Authority did not have any investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the Authority’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the Authority’s deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2025, the Authority’s deposits of $9,205,296 are covered by the Federal Deposit Insurance Corporation or collateralized.
49 CALIFORNIA CHOICE ENERGY AUTHORITY
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(14)
NOTE 4 CONTRACT REQUIREMENTS AND COMMITMENTS
The Authority has master “Take or Pay” agreements with different energy providers that associate members use to purchase energy to provide for future electric capacity for associate member agencies customers. Associate members enter into separate contracts with the providers under the Authority’s master agreements and these contracts constitute an obligation of the associate member agencies to purchase a set volume of electricity at a set price throughout the terms of the contracts.
During the fiscal year ended June 30, 2025, the total payments made by associate member agencies under the take or pay contracts was $350,063,276. At June 30, 2025, the remaining take or pay contracts for each associate member are as follows:
Total
Remaining Termination
Associate Member Contract Date
Apple Valley Choice Energy 163,993,657 $ December 2041
Energy for Palmdale's Independent Choice 342,684,779 December 2040 Lancaster Energy 386,354,927 December 2041
Pico Rivera Innovative Municipal Energy 125,367,088 December 2041 Pomona Choice Energy 267,857,027 December 2041
Rancho Mirage Energy Authority 172,850,796 December 2041 San Jacinto Power 124,396,291 December 2041
Santa Barbara Clean Energy 215,726,450 December 2041
50 CALIFORNIA CHOICE ENERGY AUTHORITY
NET POSITION BY COMPONENT
JUNE 30, 2025
(ACCRUAL BASIS OF ACCOUNTING)
(15)
2025 2024 2023 2022 2021 2020 2019 2018 2017
Business-Type Activities:
Unrestricted 1,730,031 $ 1,507,210 $ 1,009,951 $ 511,776 $ 387,307 $ 433,541 $ 646,240 $ 107,385 $ 27,724 $ Total Business-Type Activities - Net Assets 1,730,031 $ 1,507,210 $ 1,009,951 $ 511,776 $ 387,307 $ 433,541 $ 646,240 $ 107,385 $ 27,724 $ CalChoice formed in FY 2017. Ten year history will be developed and presented beginning with FY 2017. 51 CALIFORNIA CHOICE ENERGY AUTHORITY
CHANGES IN NET POSITION BY COMPONENT
YEAR ENDED JUNE 30, 2025
(ACCRUAL BASIS OF ACCOUNTING)
(16)
2025 2024 2023 2022 2021 2020 2019* 2018* 2017*
OPERATING EXPENSES
Professional Services - Members 1,511 $ 6,555,696 $ 5,845,505 $ 5,404,641 $ 4,366,453 $ 3,885,064 $ - $ - $ - $ Professional Services - Administration 1,571,267 1,427,629 1,457,070 1,541,725 1,413,202 1,575,311 5,174,484 3,659,123 52,276 Programs 189,848 - - - - - - - -
Professional Services - Prospective Members - - - - 67,000 97,758 - - - Insurance Premiums 16,851 15,090 49,441 42,292 63,768 34,707 - - - Miscellaneous 252,294 153,284 165,356 93,072 123,299 58,026 - - - Total Operating Expenses 2,031,771 8,151,699 7,517,372 7,081,730 6,033,722 5,650,866 5,174,484 3,659,123 52,276
OPERATING REVENUES
Charges for Services 2,254,292 8,649,258 7,985,985 7,204,010 5,984,365 5,429,518 5,713,339 3,738,784 80,000 Total Operating Revenues 2,254,292 8,649,258 7,985,985 7,204,010 5,984,365 5,429,518 5,713,339 3,738,784 80,000 NET OPERATING ACTIVITIES - REVENUE (EXPENSE) 222,521 497,559 468,613 122,280 (49,357) (221,348) 538,855 79,661 27,724
NONOPERATING ACTIVITIES
Interest Income - 29,562 - 2,189 3,123 8,649 - - -
Miscellaneous - - - - - - - - -
Total Nonoperating Activities - 29,562 - 2,189 3,123 8,649 - - - CHANGE IN NET POSITION 222,521 497,559 498,175 124,469 (46,234) (212,699) 538,855 79,661 27,724 NET REVENUE (EXPENSE) $ 222,521 $ 497,559 $ 498,175 $ 124,469 $ (46,234) $ (212,699) $ 538,855 $ 79,661 $ 27,724 *Expenses for FY's 2017-2019 were all categorized as Administration.CalChoice formed in FY 2017. Ten year history will be developed and presented beginning with FY 2017. 52 CALIFORNIA CHOICE ENERGY AUTHORITY
POWER SUPPLY COSTS BY MEMBER CCA
YEAR ENDED JUNE 30, 2025
(17)
2025 2024 2023 2022 2021 2020 2019 2018 2017
AVCE - Apple Valley Choice Energy
Joined CalChoice FY 2019 $ 30,037,068 $ 25,041,850 $ 27,462,760 $ 20,325,999 $ 16,971,006 $ 11,720,262 $ 14,445,271 $ - $ - EPIC - Energy for Palmdale's Individual Choice
Launched FY 2023 64,217,705 56,591,424 25,934,480 - - - - - - LE - Lancaster Energy
Joined CalChoice FY 2017 81,455,833 67,384,326 64,954,510 47,600,788 43,654,132 36,226,401 36,725,643 31,817,841 29,075,834 PCE - Pomona Choice Energy
Launched FY 2021 49,688,274 39,547,848 44,413,284 34,237,313 8,944,160 - - - - PRIME - Pico Rivera Innovative Municipal Energy
Launched FY 2018 27,816,460 18,211,029 21,836,483 16,609,791 14,022,744 11,590,714 10,729,539 3,691,911 - RMEA - Rancho Mirage Energy Authority
Launched FY 2019 32,281,004 26,969,670 27,871,240 21,557,484 18,032,575 16,360,206 14,970,659 - - SBCE - Santa Barbara Clean Energy
Launched FY 2022 42,483,309 32,320,551 35,232,292 14,428,018 - - - - - SJP - San Jacinto Power
Launched FY 2019 22,083,623 18,311,770 18,870,580 14,895,675 11,826,716 9,559,167 9,433,179 - - Total All Members $ 350,063,276 $ 284,378,468 $ 266,575,629 $ 169,655,068 $ 113,451,333 $ 85,456,750 $ 86,304,291 $ 35,509,752 $ 29,075,834 Power supply costs are listed for the years the Community Choice Aggregator (CCA) has been a member of Cal-Choice.
Power supply costs were gathered from the CCA's city ACFR. For FY2023-2025, and in the case where power costs are combined with overall operational expenditures in the ACFR, CalChoice used internal records for this data.CalChoice formed in FY 2017. Ten year history will be developed and presented beginning with FY 2017. 53 CALIFORNIA CHOICE ENERGY AUTHORITY
NUMBER OF CUSTOMER ACCOUNTS BY MEMBER CCA
YEAR ENDED JUNE 30, 2025
(18)
2025 2024 2023 2022 2021 2020 2019 2018 2017
AVCE - Apple Valley Choice Energy
Residential 22,444 22,837 23,098 23,172 23,250 23,062 22,667 - - Commercial/Industrial 2,339 2,380 2,391 2,406 2,545 2,523 2,476 - - *Total 24,783 25,217 25,489 25,578 25,795 25,585 25,143 - - EPIC - Energy for Palmdale's Individual Choice
Residential 41,472 42,003 42,266 - - - - - -
Commercial/Industrial 4,483 4,538 4,394 - - - - - -
*Total 45,955 46,541 46,660 - - - - - -
LE - Lancaster Energy
Residential 47,581 46,754 46,446 46,221 46,368 45,833 44,966 44,585 44,704 Commercial/Industrial 5,662 5,746 5,763 5,791 5,901 5,841 5,720 5,700 5,694 *Total 53,243 52,500 52,209 52,012 52,269 51,674 50,686 50,285 50,398 PCE - Pomona Choice Energy
Residential 37,117 36,501 36,263 36,186 36,051 - - - -
Commercial/Industrial 5,329 5,348 5,255 5,408 4,329 - - - - *Total 42,446 41,849 41,518 41,594 40,380 - - - -
PRIME - Pico Rivera Innovative Municipal Energy
Residential 15,390 15,342 15,229 15,207 15,240 15,212 15,144 15,374 - Commercial/Industrial 1,832 1,832 1,840 1,856 1,887 1,846 1,844 1,850 - *Total 17,222 17,174 17,069 17,063 17,127 17,058 16,988 17,224 - RMEA - Rancho Mirage Energy Authority
Residential 13,119 13,267 13,259 13,174 12,949 12,850 12,643 12,221 - Commercial/Industrial 2,088 2,079 2,080 2,081 2,098 2,101 2,100 2,063 - *Total 15,207 15,346 15,339 15,255 15,047 14,951 14,743 14,284 - SBCE - Santa Barbara Clean Energy
Residential 32,872 32,727 32,921 33,395 - - - - -
Commercial/Industrial 6,628 6,614 6,500 6,698 - - - - - *Total 39,500 39,341 39,421 40,093 - - - - -
SJP - San Jacinto Power
Residential 13,739 13,616 13,372 13,130 12,902 12,678 12,304 12,349 - Commercial/Industrial 1,554 1,566 1,557 1,554 1,613 1,554 1,544 1,529 - *Total 15,293 15,182 14,929 14,684 14,515 14,232 13,848 13,878 - *Total All Members 253,649 253,150 252,634 206,279 165,133 123,500 121,408 95,671 50,398 *Total number of active customer accounts, by member, being served energy at the end of each fiscal year.
Data provided by Calpine Energy Solutions.
CalChoice formed in FY 2017. Ten year history will be developed and presented beginning with FY 2017. 54 55
56 Item 4 Attachment B
57 58
59 Item 4 Attachment C
60 STAFF REPORT
California Choice Energy Authority
02/17/2026
RJ
Date: February 17, 2026
To: Chair Harris and Authority Members
From: Kathy Wells, Energy Programs Manager
Item 5: Receive CalChoice 2025 Programs Year-in-Review Report ___________________________________________________________________________ Recommendation:
Receive CalChoice 2025 Programs Year-in-Review Report.
Fiscal Impact:
There is no fiscal impact to California Choice Energy Authority (CalChoice).
Background:
The CalChoice Programs Advisory Committee was established in 2025 to determine common goals and interest in CalChoice’s overall program offerings and to establish criteria for the development of new and future energy programs on behalf of all CalChoice members. The committee consists of engaged representatives from each CalChoice CCA who meet monthly to discuss CalChoice energy programs. This annual report was reviewed by the members of the Advisory Committee and their input has been considered. 61 STAFF REPORT
California Choice Energy Authority
02/17/2026
RJ
Date: February 17, 2026
To: Chair Harris and Authority Members
From: Kathy Wells, Energy Programs Manager
Item 6: Receive Presentation Regarding Distributed Energy Resources Management System (DERMS) and Provide Direction
___________________________________________________________________________ Recommendations:
Receive presentation and provide direction to staff to negotiate an agreement with Lunar Energy for a Distributed Energy Resources Management System (DERMS) and for the design of a future demand response program.
Fiscal Impact:
There is no fiscal impact with this matter. Costs associated with one-time software set-up, ongoing administrative and platform operational services, will be presented at a subsequent Board meeting.
Background:
Distributed energy resources (DER) programs support customer energy cost reduction, greenhouse gas (GHG) reductions, and improvements in air quality. Such programs help Community Choice Aggregation (CCA) programs reduce costly energy purchases, while some may earn revenue from wholesale market participation. Demand response programs provide customers an opportunity to play a role in the operation of the electric grid by reducing their electricity usage during peak demand days when market prices are highest (peak events), in exchange for financial incentives. In addition, CalChoice CCAs will realize a cost savings benefit when DER customers use less energy during demand response events.
With the recent expansive deployment of DERs in CalChoice member jurisdictions (such as smart thermostats, electric vehicles and chargers, and rooftop solar and battery storage systems), the groundwork is being laid to establish a virtual power plant (VPP) for the benefit of CalChoice Members. Through a VPP, each CCA program may create, monitor, and control a fleet of assets to modify load when power is expensive, and reduce stress on the grid during called events and/or during certain market conditions.
The implementation of such a program requires a third-party supplier to provide the DERMS software for management of the devices. In addition, it also requires an experienced program administrator to establish a future demand response incentive offering for CalChoice Member customers. The program administrator will also be responsible for integration and coordination of DER assets with third-party owners.
62 2
In early 2025, CalChoice was made aware of a joint solicitation completed by Silicon Valley Clean Energy (SVCE) and Peninsula Clean Energy (PCE) for the development and implementation of a DERMS program for their respective CCAs. This Request for Proposal (RFP) included a “piggyback” clause that would allow CalChoice to leverage its solicitation efforts and engage the awarded supplier selected through that arduous process. CalChoice staff reviewed the RFP documents for compliance with CalChoice procurement policy.
In May 2025, CalChoice staff and the Programs Advisory Committee (PAC) reviewed and discussed the “piggyback” solicitation documents, including the proposal and final agreement with the selected supplier, Lunar Energy. It was determined that the scope of work aligns with CalChoice’s energy program goals and satisfies all solicitation requirements had CalChoice issued the RFP directly.
Subsequently, a subcommittee of the PAC engaged with Lunar Energy to review their project offerings and to discuss program design, anticipated costs, and customer incentive design for CalChoice to consider. Lunar Energy has prepared an initial program design for the CalChoice Members and will present a high-level program overview.
The Lunar Energy documents will include a Main Services Agreement that covers a one-time software setup fee. A Statement of Work is being developed for each CCA and its demand response program. Ongoing administrative and platform operational fees, and monthly device participation fees, will be included in the developing Statement of Work.
Prior to moving forward on behalf of each CCA, the CCA will be asked to approve and acknowledge its demand response program and any future additions to it as the program grows.
The subsequent Statement of Work and associated fees will be presented to the Board at a later date.
63 STAFF REPORT
California Choice Energy Authority
2/17/26
RJ
Date: February 17, 2026
To: Chair Harris and Authority Members
From: Cathy DeFalco, General Manager
Item 7: Receive Presentation from Pacific Energy Advisors Regarding Incremental Capacity Procurement Mandates
Recommendation:
Receive Presentation from Pacific Energy Advisors Regarding Incremental Capacity Procurement Mandates.
Fiscal Impact:
The additional capacity procurement mandates will result in future new costs to the CalChoice members. These future procurement costs will be factored into members’ pro formas.
Background:
The California Public Utilities Commission (CPUC) recently issued a Proposed Decision establishing mandatory clean energy procurement requirements by 2032 to ensure long-term grid reliability as current mandates begin to expire. The purpose of this item is to provide the Board with an overview of these new incremental capacity procurement mandates.
Attachment:
Incremental Capacity Procurement Mandates Presentation
64 Incremental Capacity
Procurement Mandates:
Status Update
February 17, 2026
65 Item 7 Attachment
2 • Incremental procurement orders stem from California’s Integrated Resource Planning (IRP) process
• The CPUC IRP process is CA’s “umbrella” planning proceeding, designed to ensure load serving entities (LSEs) meet CA’s clean energy goals in a reliable, cost-effective manner • SB 350 and SB 100 specify CA’s clean energy goals as follows: 50% RPS by 2026, 60% RPS by 2030, and 100% Carbon-Free by 2045
• To date, there have been three incremental procurement directives issued by the CPUC with a fourth expected in mid-February 2026: each of these directives identifies applicable capacity procurement obligations for each LSE • The share of total procurement assigned to each LSE has been based on proportionate peak demand
• Incremental procurement directives have only been applicable to those LSEs in operation at the time of decision issuance
Incremental Capacity Procurement: Overview
66 3
• D.19-11-016 (issued in 2019; 2018 IRP filing)
• 3,300 MWs of aggregate incremental procurement directed between 2021-2023 • 50% of capacity to be online by 8/1/2021; 75% by 8/1/2022; and 100% by 8/1/2023 • Applicable to AVCE, LE, PRIME, RMEA and SJP (23 MWs in aggregate) • D.21-06-035 (issued in 2021 – Mid-Term Reliability; 2020 IRP filing) • 11,500 MWs of aggregate incremental procurement directed between 2023-2026 • Diablo Canyon Replacement by 2025; Long Lead Time resources by 2026 • Applicable to AVCE, LE, PRIME, RMEA and SJP + Pomona and SBCE (109 MWs in aggregate) • D.23-02-040 (issued in 2023; Supplemental Mid-Term Reliability; 2022 IRP filing) • 4,000 MWs of aggregate incremental procurement directed between 2026-2027 • Also postpones original long lead time procurement reflected in D.21-06-035 until 2028 • Applicable to ALL CalChoice members (62 MWs in aggregate + 23 MWs of deferred long lead time from D.21-06-035) • Proposed Additional Procurement (expected issuance of decision in mid-February 2026) • 6,000 MWs of aggregate incremental procurement directed between 2030-2032 (1/3 of total obligation by 2030; remaining 2/3 by 2032)
• Only 50% of assigned NQC, per tranche, can be sourced from storage • Applicable to ALL CalChoice members (86 MWs in aggregate) • Details are subject to change, pending final CPUC Decision Incremental Capacity Procurement: Overview
67 • Directed procurement is quantified as the Net Qualifying Capacity (NQC) total required to fulfill each procurement tranche
• Vintaged marginal effective load carrying capability (ELCC) values are used to “translate” technology-specific nameplate capacity values to NQC values when measuring incremental procurement compliance
• Numeric example for 4-hour battery storage:
• Project nameplate capacity: 50 MWs
• Expected online date: June 2026
• Assigned ELCC value: 76.6%
• NQC credited towards incremental procurement: 50 MWs * 76.6% = 38.3 MWs • Numeric example for PV Solar:
• Project nameplate capacity: 50 MWs
• Expected online date: June 2025
• Assigned ELCC value: 6.6%
• NQC credited towards incremental procurement: 50 MWs * 6.6% = 3.3 MWs • ELCC values are expected to decrease for certain technologies over time:
• 2030 ELCC values to be published by the CPUC no later than July 31, 2026 • 2032 ELCC values to be published by the CPUC no later than December 31, 2027 4 Quantifying Incremental Procurement Obligations
68 5
Quantifying Incremental Procurement Obligations
Values reflect annual NQC (MW) totals identified under the CPUC’s four distinct incremental procurement directives. The bar chart reflects CalChoice’s aggregate procurement obligation as totaled across all members.
0 10
20 30
40 50
60 70
80 0
2 4
6 8
10 12
14 16
18 20
2021 2022 2023 2024 2025 2026 2027 2028 2030 2032 MWs MWs CalChoice's Incremental Procurement Obligations: 2021-2032 Total AVCE LE PRIME RMEA SJP Pomona SBCE EPIC
28 MWs
by
6/1/2030
Additional 58
MWs by
6/1/2032
(86 MWs total)
69 6
• To procure the volumes necessary to fulfill CPUC directives, CalChoice has issued a series of RFPs for incremental capacity and long-term renewable energy supply
• CalChoice has also engaged in successful bilateral negotiations to contract for its remaining needs
Procurement Planning
Participating
Counterparties
Unique
Proposals
Executed Contracts
2019 (RFP) 25 106 (1) Mountain View
2020 (RFP) 16 39 (1) Manzana
2022 (RFP) 21 149 (4) Tecolote, Leapfrog,
Resi Station, Cape
2023 (RFP) 14 86 (1) ES1-TerraGen
2024 (RFP) 18 41 (1) Deer Creek
2025 (Bilateral) N/A N/A (3) Circle City, Athos,
Aypa
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• CPUC procurement orders generally create a 'rush to market' where all LSEs compete simultaneously for limited resources; this environment creates atypical leverage for sellers/project developers (price, contract terms, deal withdrawal, etc.)
• CalChoice agreed to contract terms with the developer of a battery storage facility (scheduled COD of June 2024; Tranche 2 MTR); while CalChoice was awaiting supplier execution, it was informed by the seller that it had offered the project to an IOU at a higher price
• CalChoice executed a transaction with the developer of a Utah-sited geothermal project (scheduled COD of June 2026; Tranche 4 MTR, LLT); more than a year after contract execution occurred, the developer decided to offer the project to an IOU at a higher price point, citing “credit and project financing concerns” related to the original buyers; CalChoice now has an executed contract amendment reflecting a higher price and a later (2031) COD
• Diminishing number of conforming RFP responses:
• Although more recent solicitations have generally yielded several responses, very few proposals have conformed with actual RFP specifications (for CODs and product type parameters, in particular); only a small subset of RFP responses present viable options Procurement Challenges
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• Targeted project types: 1) clean baseload renewable; 2) intermittent renewable energy + storage; and 3) stand-alone storage
• Evaluation criteria will include price, COD, location, developer experience, +others • CalChoice may want to consider production cost modeling as part of the project evaluation process (for certain intermittent renewable generating projects) Solicitation Addressing 2030/2032 Procurement
RFP Activity Anticipated Date of Completion
RFP Issuance April 2, 2026
Deadline for Electronic Question Submittal April 17, 2026 no later than 5:00 PM PPT RFP Response Deadline May 15, 2026 no later than 5:00 PM PPT Follow-up with RFP Respondents, as
necessary
To occur between May 18, 2026 and May
27, 2026
Supplier Notifications (Short-List) June 5, 2026
Contract Negotiations June 8, 2026-July 31, 2026
Member Councils Approve Awards July-August 2026
Contract Execution July-August 2026 (after councils approve) 72 9
Questions?
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