Audit & Finance Committee
Thursday, September 15, 2022
1:00 PM
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940
IMPORTANT NOTICE REGARDING COVID-19 MEETING REQUIREMENTS The special procedures in place to minimize the spread of the COVID-19 virus may supersede general meeting procedures and delay distribution of materials to members, although every effort will be made to ensure comments and materials received prior to the meeting end will be made part of the record.
Based on guidance from the California Department of Public Health and the California Governor’s Office, in order to minimize the spread of the COVID-19 virus, please do the following:
1. You are strongly encouraged to observe the live stream of the CCCE Audit & Finance Committee meeting at: https://3cenergy.hylandcloud.com/203agendaonline/Meetings/Search?dropid=4
2. The CCCE Committee Room remains open. If you attend the CCCE Audit & Finance Committee meeting in person:
a. You will be required to (i) wear a mask during the meeting and (ii) maintain appropriate social distancing, i.e., maintain a 6-foot distance between yourself and other individuals. b. Additional seating with audio of the CCCE Audit & Finance Committee meeting will be available in the CCCE Main Conference Room, located at 70 Garden Court, Suite 300, Monterey, CA 93940. Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact Heather Vowell, Committee Clerk, at 831-641-7216 or [email protected]. Requests should be made as soon as possible but at least 72 hours prior to the scheduled meeting.
3. If you choose not to attend the CCCE Audit & Finance Committee meeting but wish to make a comment on a specific agenda item, you may please submit your comment as set out below. The timing of public comment shall be at the discretion of the Chair. Options for public comment are as follows:
a. To have your comments distributed to the Committee prior to the meeting submit your comment via email by 5:00 p.m. on the day before the meeting. All comments received after 5:00pm on the day before the meeting will be retained as part of the record and distributed to the Committee after the meeting. Please submit your comment to the Clerk of the Committee at [email protected]. To assist the Clerk in identifying the agenda item relating to your public comment please indicate in the Subject Line, the meeting body (i.e., Audit & Finance Committee Agenda) and item number (i.e., Item No. 3).
You may participate through ZOOM. For ZOOM participation please join by computer audio at: https:// us02web.zoom.us/j/89130443641
OR the following phone number(s):
US: +1 669 900 6833 or +1 669 219 2599
Enter this Meeting ID number: 891 3044 3641 when prompted. Please note there is no Participant Code, you will just hit # again after the recording prompts you.
You will be placed in the meeting as an attendee; when you are ready to make a public comment if joined by computer audio, please Raise your Hand; and by phone please push *9 on your keypad.
If you have anything that you wish to be distributed to the Committee, please provide 15 copies and hand them to a member of CCCE staff or Heather Vowell, Committee Clerk, who will distribute the information to the Committee members and other staff.
The public may comment on a specific item listed on this agenda when the Committee considers that item. In addition, the members of the public may request and receive copies without undue delay of any documents that are distributed to the Committee, unless there is a specific exemption under the Public Records Act that prevents the disclosure of the record. (Cal. Gov’t Code Section 54957.5) In compliance with Government Code Section 54957.5, non-exempt writings that are distributed to a majority or all of the Committee in advance of a meeting and that relate to an agenda item will be made available at CCCE’s offices located at 70 Garden Court, Suite 300, Monterey, CA 93940 during normal business hours and are also available on the CCCE website located at:
https://3cenergy.hylandcloud.com/203agendaonline
AGENDA
. Welcome & Roll Call
CONSENT AGENDA
1. Approve Minutes from the June 8, 2022 Meeting of the Audit and Finance Committee (Action Item)
2. Consider Finding, Pursuant to AB 361 and in order for the Audit and Finance Committee to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Audit and Finance Committee has Reconsidered the Circumstances of the State of Emergency; and the Monterey County Health Officer Continues to Recommend Social Distancing Measures for Meetings of Legislative Bodies (Action Item)
REGULAR AGENDA
3. Support Seeking Approval from the Policy Board for CCCE’s FY 2022/23 Operating Budget and Adjustment to Electric Generation Rates in the PG&E Service Territory (Action Item) Committee Member Reports & Comments (Information Only)
Adjournment
Wednesday, June 8, 2022
3:30PM
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940
MINUTES
The meeting was called to order at 3:30pm with 5 members attending via teleconference pursuant to AB 361 and a quorum established
Members Present: Carbone, Mendez, Waage, Vice Chair Rerig, and Chair Johnson Members Absent: None
CONSENT AGENDA
The Chair opened the public comment period.
No public comment received.
The Chair closed the public comment period.
MOTION: Moved by Member Mendez, seconded by Member Waage to approve the Consent Agenda.
ACTION: The Motion Carried with a roll call vote: 5/0/0 AYES: Carbone, Mendez, Waage, Vice Chair Rerig, Chair Johnson NOES: None
ABSENT: None
1. Approved Minutes from the March 23, 2022 Meeting of the Audit and Finance Committee.
2. Found, Pursuant to AB 361 and in order for the Audit and Finance Committee to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Audit and Finance Committee has Reconsidered the Circumstances of the State of Emergency; and the Monterey County Health Officer Continues to Recommend Social Distancing Measures for Meetings of Legislative Bodies
REGULAR AGENDA
3. Supports Seeking (1) Policy Board Approval of CCCE's Finance Strategic Initiatives and (2) Policy Board Direction that the CEO to take Necessary Steps to Implement the Strategic Initiatives including the Operations Board’s Review and Approval of the Liquidity Investment Management and Custody Agreements with RBC Global Asset Management and Principal Financial 1/36
The Chair opened the public comment period.
No public comment received.
The Chair closed the public comment period.
MOTION: Moved by Member Waage, seconded by Member Mendez to approve the Consent Agenda.
ACTION: The Motion Carried with a roll call vote: 5/0/0 AYES: Carbone, Mendez, Waage, Vice Chair Rerig, Chair Johnson NOES: None
ABSENT: None
Adjourned at 4:22pm
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Staff Report Item 2
TO:
FROM:
SUBJECT:
DATE:
CCCE Audit & Finance Committee
Tom Habashi, Chief Executive Officer
Consider Finding, Pursuant to AB 361 and in order for the Audit and Finance Committee to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Audit and Finance Committee has Reconsidered the Circumstances of the State of Emergency; and the Monterey County Health Officer Continues to Recommend Social Distancing Measures for Meetings of Legislative Bodies (Action Item)
September 15, 2022
RECOMMENDATION:
This recommends the Audit and Finance Committee (“Committee”) find, pursuant to AB 361 and for the Committee to continue meeting remotely, that the COVID-19 pandemic State of Emergency declared by Governor Newsom is still in effect; the Committee has considered the circumstances of the State of Emergency; and the Monterey County Health Officer continues to recommend social distancing measures for meetings of legislative bodies.
BACKGROUND:
On September 16, 2021, Governor Newsom signed AB 361. This legislation amends the Brown Act to allow Brown Act bodies to meet via teleconference during a proclaimed state of emergency in accordance with teleconference procedures established by AB 361 rather than under the Brown Act's more narrow standard rules for teleconference meetings.
DISCUSSION/ANALYSIS:
AB 361 provides that if a state or local health official recommends social distancing, a legislative body may meet remotely after September 30, 2021, provided that the legislative body finds 1) the Governor's proclaimed state of emergency is still in effect; 2) the legislative body has reconsidered the circumstances of the state of emergency, and 3) either the Monterey County Health Officer continues to recommend social distancing measures for meetings of legislative bodies or the state of emergency continues to directly impact the ability of the members to meet in person. 3/36
The Monterey County Health Officer has recommended social distancing measures for meetings of legislative bodies. To continue meeting remotely, the Committee must make the findings outlined above.
Accordingly, staff recommends making the appropriate findings. This action will be required every 30 days to keep meeting remotely. A special meeting may be necessary for that purpose.
FISCAL IMPACT:
There is no fiscal impact associated with this action.
CONCLUSION:
The Committee’s consideration and finding that the COVID-19 pandemic State of Emergency declared by Governor Newsom is still in effect; the Committee has reconsidered the circumstances of the State of Emergency; and the Monterey County Health Officer continues to recommend social distancing measures for meetings of legislative bodies will allow the Committee to continue meeting remotely under the procedures established by AB 361.
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Staff Report Item 3
TO: CCCE Audit & Finance Committee
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Support Seeking the Policy Board Approval of Resolution Adopting CCCE’s FY 2022/23 Operating Budget and Adjustment to Electric Generation Rates in the PG&E Service Territory (Action Item)
DATE: September 22, 2022
RECOMMENDATION:
This recommends that the Audit & Finance Committee Support the Policy Board (“Policy Board”) adopting Resolution No. PB-2022-04 to achieve the following. 1- Reduce rates for all customer classes in the PG&E service area by 1 cent/kwh for calendar years 2023 and 2024 and
2- Approve the CCCE FY 2022/23 Operating Budget.
BACKGROUND:
In June 2021, the Policy Board approved setting electric generation rates based on the cost to serve customers.
In September 2021, to address rising cost of power supply, the Policy Board approved a 1 cent/kwh adder to the rates of all customers classes in the PG&E service territory.
In December 2021, to address the persistent power supply price hikes, the Policy Board approved:
An additional 2 c/kWh rate adder for all customers in the PG&E service area Continuing the 1 c/kWh rate adder approved in September for CYs 2023-24 SCE service area customers were enrolled beginning in October 2021. To be consistent with enrollment messaging, the SCE service area customers rates were set at SCE rates minus 2 percent for CY 2022 with the intention to switch to cost based rates in CY 2023.
DISCUSSION:
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Power Supply Budget
CCCE anticipates a substantial rise in power supply cost (“Cost of Energy” or “COE”). CCCE stabilizes Cost of Energy and exposure in the energy market through long-term power purchase agreements and short term (one to three years) energy price hedging. As Figure 1 shows, natural gas prices – a significant driver of California power prices – have more than tripled since 2019-20. Note that while CCCE does not procure power from natural gas power plants, regional power prices are heavily influenced by gas-fired power plants. Therefore, increased volatility in natural gas markets and higher prices in natural gas markets affect regional spot and long-term power price benchmarks. These regional power prices and benchmarks in turn affect the prices at which developers and market participants are willing to transact with CCCE.
Figure 1: Henry Hub Front Month Futures Contract. Source: US Energy Information Administration The market price for power products has increased, with long-term prices and market liquidity reflecting uncertainty around the long-term California power supply-demand balance, market rules, natural gas volatility, and long-term price equilibrium.
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Considering the sizable increase in power supply cost, staff currently propose to reduce rates for customers in the PG&E service area by 1 c/kWh for Calendar Year 2023 and 2024 instead of the 2 c/kWh reduction that was anticipated in December 2021.
Electrification Programs
At inception and in the years since, CCCE’s energy programs’ budget was indexed to revenue, i.e., set as a percent of revenue. That approach was reasonable considering that CCCE had limited data with which to plan and administer electrification programs within our service area.
Over the past 5 years, CCCE’s professional staff made significant improvements to identify market demand, barriers and then adjust the design and operation of energy programs – experience and data that is being successfully leveraged to size program spend based on need and effectiveness. Moreover, the adoption of cost-based rates enables the agency to plan for and capture revenues sufficient to cover investments made in CCCE’s electrification programs.
The variable indexed approach can create inherent volatility in program budgets and potentially lead to a mismatch between revenues collected for programs and the actual demand for those programs.
Matching energy program investment with community demand is prudent for a variety of reasons:
Competitive and fair rates. Program funds are collected from all CCCE customers. It is important that rates and program portfolio management be tailored to ensure competitiveness with the Investor-Owned Utilities (IOUs) and avoid burdening customers with additional costs unsupported by program demand or adoption.
Increasing program budget stability. CCCE rates reflect its cost of service – and CCCE’s goal is to reduce cost by procuring low-cost power. If revenues decline, program funds will decline. Removing the index approach will provide greater long-term stability and avoid unexpected declines or a whipsaw effect where program funds move up and down sequentially. Greater alignment with the ability to scale programs and greater visibility into actual spend at the program line-item level. This enables CCCE’s professional staff to better plan and manage energy programs for success throughout the year.
Improve financial stability and visibility.
o Currently, the balances for program funds and the UPS Fund are carried as unrestricted funds. Separating funds committed under contract or letters of intent and then restricting them would guarantee the funds are accessible only for the purpose for which they were committed under a letter of intent or agreement.
o As discussed below, consolidation of unrestricted funds into a single reserve ensures credit rating agencies treat these as unrestricted liquid funds available to CCCE. 7/36
The better approach is to budget for programs based on the anticipated spending on these programs rather than committing to a percent of revenue funding structure. Furthermore, combining all existing unspent reserves into one Reserve Fund and having a separate restricted program fund to carry committed program dollars adheres to best business and accounting practices. Ensuring that unrestricted reserves are viewed properly by rating agencies helps position CCCE in contract negotiations and regulatory proceedings where the CCAs are arguing metrics like credit ratings and cash-on-hand liquidity should be considered when setting customer protection requirements like the Financial Security Requirement.
Staffing and Support Services
This budget cycle, staff made several structural changes to increase transparency and reduce variability:
Held year-on-year increases to the organization’s Compensation & Benefits budget to be flat Realigned and updated the entire organization’s Chart of Accounts to reflect the organization’s evolution and enable more robust budgeting, expense attribution, and reporting Bottom-up budgeting with Divisions developing their budgets from a zero base; customized forward-looking estimates replaced prescriptive allocations in multiple categories Detailed estimates for categories forecast to experience material spend Budgeting an additional 5% of the staffing and other support as a contingency to absorb inflation, supply chain challenges, and unanticipated increases.
Preliminary Budget Forecast
The following table shows the preliminary FY 2022-23 budget and 3-year financial forecast, incorporating the 1 c/kWh rollback for the PG&E service area. 8/36
CY 2023 CY 2024 CY 2025
Revenues 436 447 406
Costs
Cost of Energy 388 354 361
Energy Programs 16 16 16
Administrative Budget 24 25 25
Total Costs 428 395 402
Net Position 8 52 4
Rate Adder (c/Kwh) 2 2 0
End of Year Reserve Fund 187 234 239
End of Year Reserve Fund as % of Revenues 43% 52% 59%
CCCE Pro Forma 3-Year Financial Forecast ($ MM)
Key non-energy expenses and the accompanying year-on-year changes are detailed below.
FY 22/23 Y/Y Change
Energy Programs: Community Programs
Electrify Your Ride 4.6 1.5
Agriculture Electrification 2 1.6
Electric Bus 2 1
Energy Programs: Member Agency Programs
Charge Your Fleet 1.25 1.25
Administrative Budget: Top 5 Expenditures
Compensation & Benefits 9.3 0.0
Data Manager 2.8 -1.0
IOU Service Fees 2.1 0.2
Legal 1.8 0.8
Technical Consultants 1.5 1.1
CCCE Pro Forma: Select Key Items
The $16 MM in Energy Program spend is net new commitments for incentives and does not include staff and support costs. An additional $1.8 MM will be spent in FY 22/23 on staff compensation and administrative expenses. This brings total projected FY 22/23 Energy Program spend to over $17.8 MM.
Moreover, the Energy Program spend does not include prior years’ approximately $9.6MM in firm commitments made through contracts or Letters of Intent. These commitments will be moved to a 9/36
restricted Program Fund and the uncommitted fund balance – currently estimated to be approximately $10 MM at the end of FY 21/22 - will be moved into the Reserve Fund.
Staff are actively engaged in PPA discussions and hedging activities, all of which could be impacted by market price moves and regulatory decisions. It may be necessary to for Staff to return to the Policy Board in December if market and regulatory decisions warrant.
Competitiveness With Investor-Owned Utilities
Delivering value to customers is a key priority for CCCE. One measure of that value – though certainly not the only one - is the savings CCCE can deliver versus the legacy Investor-Owned Utilities (“IOUs”).
The IOUs issue projections of their next calendar years’ generation rates through the Energy Resource Recovery Account (“ERRA”) proceeding. Their initial projections of 2023 rates were made in June 2022.
They will revise these projections based on market conditions and finalize their rates by December 2022.
CCCE commissioned NewGen Strategies & Solutions, LLC (“NewGen”) to develop a customized analysis of CCCE’s competitiveness based on the IOUs’ June projection of their 2023 IOU rates. In addition to reviewing the rates themselves, the analysis calculated the amount spent on average by customers over the course of a year – accounting for monthly consumption patterns and any applicable demand charges1. For customers with demand charges, this helps create a more apples-to-apples comparison between CCCE and IOU rates.
The analysis indicates CCCE would be competitive with PG&E’s projected 2023 if CCCE held its current rates steady. CCCE’s competitiveness would further improve provided the Board approve of staff recommendations. The following table shows CCCE’s competitive position relative to PG&E.
For customers in the SCE service area, staff recommends the current rate structure of 2% discount of the SCE rates.
1 For rate codes without demand charges, the base starting point for calculation was all customers. For rate codes with demand charges, the base starting point for calculation was the five largest customers. 10/36
CUSTOMER CLASS CCCE Current Rates Projected CCCE
2023 Rates
Projected PG&E
2023 Rates
Difference Between Projected PG&E 2023
Rates And Projected CCCE 2023 Rates RES 0.12 0.10 0.13 -16% SM COM 0.13 0.11 0.13 -17%
MED COM 0.11 0.10 0.12 -21%
LG COM 0.11 0.09 0.10 -13%
AGR 0.11 0.10 0.11 -13%
SL 0.11 0.09 0.11 -16%
PROPOSED CCCE VS PG&E 2023 ERRA FORECAST
RATE GROUP CUSTOMER CLASS
Projected CCCE 2023
Rates
Projected SCE 2023
Rates
Difference Between Projected SCE 2023 Rates And Projected CCCE 2023 Rates DOMESTIC RES $0.092 $0.094 -2% TOU-GS-1 SM COM $0.092 $0.094 -2%
TOU-GS-2 MED COM $0.092 $0.094 -2%
TOU-GS-3 LG COM $0.078 $0.080 -2%
TOU-8 LG COM $0.070 $0.071 -2%
TOU-PA-2 MED AG $0.076 $0.077 -2%
TOU-PA-3 LARGE AG $0.063 $0.064 -2%
Street Lighting SL $0.048 $0.049 -2%
Traffic Control TC $0.074 $0.075 -2%
PROPOSED CCCE VS SCE 2023 ERRA FORECAST
Estimated rate projections. Average rates calculated based on customer samples and weights.
Staff anticipates conducting a unified cost of service study across the entire PG&E and SCE services for the next 3-year rate cycle that begins in 2025. At that time, staff will explore a single set of rates for the entire service area.
As noted above, these are preliminary projections based on snapshots in time. The high degree of volatility in markets, continuing supply chain issues, hedging activities, and the fluid nature of PPA contract discussions means both CCCE’s own rate projects and the IOUs’ rate projections may change over the next 4 months. Staff will continue to update projections and the Boards as new information becomes available, with the goal of continuing to deliver value for customers.
FISCAL IMPACT
CCCE proposes reducing rates for PG&E customers by 1 c/KWh for the PG&E service area over the next 2 calendar years. The Reserve Fund is projected to reach 50% of revenues at the end of 2024.
CONCLUSION
The Policy Board’s approval of the FY 2022-23 Operating Budget will significantly advance CCCE’s budget and financial practices, make a significant investment in energy programs, and continue delivering value for customers.
11/36
ATTCHMENT(S):
1. FY 2022/23 Budget Book
12/36
POWERING OUR FUTURE
FY 22/23 OPERATING BUDGET
70 Garden Court Suite 300 Monterey CA 93940
CEO’s Message............................................................................................................................... 1 FY 2021/22 Key Accomplishments ............................................................................................... 3 Strategic Outlook: 2022-2027 ........................................................................................................ 5 FY 2022/23 Operating Budget ....................................................................................................... 7 FY22/23 Budget Drivers, Assumptions & Risks.......................................................................................... 8 Projected 2023 Rates..................................................................................................................................10 3-Year Strategic Forecast...........................................................................................................................11 FY22/23 Budget ..........................................................................................................................................12 FY22/23 Budget Key Changes In Admin Budget ...................................................................................13 Long-Range Forecast Key Assumptions & Risks .......................................................................................14 Long-Range Pro Forma................................................................................................................................14 About CCCE .................................................................................................................................. 16 CCCE Membership Enrollment ..................................................................................................... 17 Our Boards ................................................................................................................................... 19 2022 Policy Board.......................................................................................................................................20 2022 Operations Board .............................................................................................................................21 2022 Community Advisory Council............................................................................................................22
TABLE OF CONTENTS
1 CEO MESSAGE
The leadership of the Policy and Operations Boards of Directors along with the dedication of our professional staff have brought Central Coast Community Energy (CCCE) through the greatest public health crisis in our lifetimes, the resulting upheaval in world supply chains, and the most volatile electric energy markets in over twenty years.
Through all of it, CCCE has managed its energy supply costs, continued investing in our goal of 100% clean and renewable power by 2030, maximized programs delivery, and established itself as a leader in our communities and the state.
Remaining focused on our goal of reaching 100% renewable energy by 2030 has allowed CCCE to find opportunity amid the turbulent energy markets experienced this year. Five new renewable energy projects that we invested in came online in 2022, with the collective capacity to serve 22% of our customers’ annual energy demand. These rewards came at a time when many energy companies were urgently reviewing their strategies to respond to new regulations and higher prices. Our agency, on the other hand, found that by sticking to the strategy so well-laid out at our formation, we have weathered the storm and made remarkable progress toward achieving our goals.
A Global Energy Crisis
The war in Ukraine triggered a squeeze on energy supplies that has driven power and fuel prices up and added to inflationary pressures worldwide.
In California, regulators at the California Public Utilities Commission (CPUC) issued procurement orders that sent load-serving entities across the state scrambling to sign long-term renewable power purchase and storage agreements when market prices were at a twenty-year high due to supply chain constraints and congested interconnection queues. The competition for projects spurred some of our long-term PPA counterparties to seek to reopen previously negotiated agreements and push for higher prices, which would ultimately fall to our customers.
While CCCE is willing to offer flexibility and help our counterparties succeed in delivering the projects they’ve promised, we remain committed to honoring the original core contract terms in every case. As an agency formed to serve the public, we hold to our word and expect no less from our partners.
Because we signed many of our energy supply contracts when prices were more favorable, our customers have been sheltered from the recent spike in prices. As the fiscal year draws to a close, it’s clear that the course settled upon when our agency was formed, and the ability of our leadership and staff to remain faithful to this direction, despite current challenges, has served our customers’ best interests.
Keeping Our Focus
The current energy crisis may drive faster adoption of renewable energy technologies. It’s encouraging to see elected leaders at the state and federal levels working to usher in the transformational changes required to address climate change. Current conditions will also foster innovation. In the past year, CCCE coordinated with CC Power to scale CCA’s buying power for new geothermal resources. We’re actively evaluating diverse storage technologies, like compressed air, and we have made considerable progress on our Front-of-the-Meter Energy Storage project, which positions our agency to own distributed battery storage throughout our service area.
Our agency is primed to identify the opportunities that arise in periods of great upheaval and change because our mission is clear. We are pressing toward our goal of attaining 60% renewable energy by 2025 and 100% by 2030. And while our goals are more ambitious than those set by President Biden and Governor Newsom, we are making steady progress, which affirms our belief they are attainable and realistic. 2 CEO MESSAGE
CCCE’s progress is evidenced by the success of our Energy Programs this year, which exceeded previous years’ performance in the number of applicants, expenditure of dedicated funding, and the assumed reductions in GHG emissions, which are greater than those achieved in all previous years combined. This achievement is the result of staying tied to the fundamentals of what makes programs impactful to our communities and attractive to our customers, insisting on clarity in planning, and an undying dedication to continually improving the process.
We take the same approach in pursuing new sources of renewable energy – and in formulating a portfolio of solar, wind, and geothermal projects at a large scale that can serve our demand. The aim is reliability and capacity to meet growing demands for clean power as we shift away from fossil fuel-burning technologies in transportation and business. Looking ahead and anticipating these increases is one of the reasons we’ve invested in battery storage projects that will enable us to dispatch renewable energy in our community’s load centers – bringing dependability to the hours of the day when solar energy is less available and people’s energy demands remain high.
In 2023, we expect six additional new renewable power supply projects to come online. With each arrival, we are closer to a cleaner, healthier, and more sustainable future for the Central Coast. While there is much work ahead, we look forward to building on our successes. Our actions today are critical to creating a sustainable, inclusive, and economically, socially, and environmentally beneficial energy transformation.
Tom Habashi, Chief Executive Officer
3 FY 2021/22 KEY ACCOMPLISHMENTS
Delivering Financial Value, Innovation And Strength
• Delivered competitive cost-based rates up to 20% below Pacific Gas & Electric (PG&E) • Delivered electricity generation rates 2% below Southern California Edison (SCE) • Provided CARE/FERA customers a $100 bill credit to mitigate the impact of rate adjustments on our most vulnerable customers. Total disbursement expected to exceed $8 Million (MM) • Partnered with PG&E and the state to distribute more than $2.5 MM in California Arrearage Payment Program (CAPP) funds from the state to assist customers financially impacted by COVID-19 • Maintained CCCE’s “A” credit rating in S&P’s cycle credit review. For the first time, S&P outlined the possibility of an upgrade to “AA” status as CCCE continues demonstrating fiscal prudence • Developed the Treasury function to deliver higher returns on cash balances and reserves by contracting an external investment manager (RBC) and directly investing in treasury-indexed products • First CCA to successfully migrate billing and accounts receivables functions; 380,000+ PG&E meters moved to a leading provider, Calpine, that delivers a wide range of data and reporting functions • Expanded risk management function by adopting best practice of segregation of duties, developing new risk reporting, and leveraging new modeling tools
• Launched two key initiatives – a Power Purchase Agreement (PPA) Prepay and a Financial & Billing Data Platform – that will deliver savings, strengthen finances, and provide customer insights • Increased net position balance to $212.6 MM as of July 30, 2022, and implemented rate adjustments to successfully navigate unprecedented volatility Addressing Climate Change By Decarbonizing the Electric Grid • Delivered four renewable generation projects for customers:
o Coso project is providing 66.3 MW of geothermal energy/11% of CCCE’s demand o Slate solar plus storage project, one of California’s first and largest integrated solar plus storage projects, is providing 67.5 MW of solar generation and 135 MWh of storage, serving approximately 4% of CCCE’s demand
o Casa Diablo IV project, the first new CA geothermal project in 30 years, is providing 7 MW of energy/1% of CCCE’s demand using advanced binary closed loop technology o The Mountain View wind project came online six months early and is delivering 33.3 MW of energy/3% of CCCE’s demand
• Collaborated with other CCAs through CC Power to execute two renewable geothermal projects to meet CCCE’s Firm Clean Resources procurement requirement o Ormat will develop a portfolio of projects providing CCCE up to 22.38 MW o Open Mountain Energy will provide CCCE 2.42 MW
• Executed four energy storage agreements for locally sited energy storage that provides industry standard lithium ion and long duration vanadium flow technology • Established a partnership with Depcom Power, LLC to explore and develop up to 25 MW of small-scale turnkey energy storage projects across CCCE’s service area 4 FY 2021/22 KEY ACCOMPLISHMENTS
Addressing Climate Change Through Electrification and Innovation • Disbursed $2.85 MM in incentives for electric vehicles (EVs), electric bikes, EV charging equipment and installation, reducing an estimated 1,800 metric tons of GHG emissions • Reserved $1.25 MM of funding for eight electric school buses across the CCCE service area and promoted an innovated leasing structure allowing school districts to quickly transform their fleets • Reserved $4.2 MM total for publicly accessible DC Fast Chargers for communities in San Luis Obispo County ($1.2 MM) and Santa Barbara County ($3 million). • Reserved $1.7 MM total for Level 2 charging equipment for communities in San Luis Obispo County ($680,000) and Santa Barbara County ($1.05 MM)
• Reserved $1.25 MM to purchase all electric heavy-duty equipment, including refuse haulers, streetsweepers and a transit bus
• Reserved nearly $800,000 in funding to incentivize affordable developers to build approximately 700 all-electric affordable housing units
• Disbursed $625,000 of incentives to electrify CCCE agricultural customer’s operations, from equipment to vehicles
• Awarded $640,000 in grants to support six regional planning, implementation, and education initiatives in our Member Agencies
• Provided Member Agencies over $240,00 to support 22 EV charging stations with 44 ports and 30 new light duty electric vehicles
• Enrolled approximately 80 contractors working in the CCCE service area to participate in an innovated “mid-stream” home electrification program throughout the CCCE service area • Executed a $2 MM financing agreement with the County of Santa Cruz to facilitate the purchase and installation of emergency backup generation for critical operations • Launched a Member Agency Services initiative to engage the unique needs of CCCE’s 33 Member Agencies, including regional working groups and regional collaborations Engaging With Customers
• Achieved a high enrollment rate – 97% of the 449,5000 eligible customer meters in the service area • Successfully enrolled 7,000 new customers in the City of Buellton • Successfully partnered with the City Council of Atascadero, supporting their decision to join CCCE • Expanded the innovative Farmworker Outreach Program into the southern service area • Developed and adopted an Underserved Communities Outreach and Engagement Plan, defining impacted communities and strategies to promote CCCE benefits and programs to all customers • Developed a 5-Year Impact Report, highlighting accomplishments of Central Coast Community Energy, including enrollment, energy programs, long-term renewable energy contracts, lower generation rates, and public participation through agency meetings and outreach • Post-COVID, deepened in-person engagement with key customers and regional organizations 5 STRATEGIC OUTLOOK: 2022-2027
Power Supply Procurement
To achieve measurable reductions in GHG emissions, CCCE Boards approved renewable energy procurement strategy designed to reach 60% of retail demand by 2025 and 100% by 2030. CCCE procurement strategy has been to enter long-term fixed-price contracts – Power Purchase Agreements or PPAs - with developers for storage and renewable energy power plants. This strategy, implemented over several years, has resulted in a weighted average cost of power well below market prices. The COVID-19 pandemic and subsequent supply chain challenges, combined with significant increases in power prices, led to delays in startup and to requests for contract renegotiation. While CCCE is working to resolve these challenges, the growth in global demand for renewable energy power plants and storage projects signals prices and component availability will remain challenging until supply chains expand.
CCCE is responding by accelerating plans to deploy up to 100 MW in small-scale (1-5 MW) energy storage projects throughout its service areas. The new tax credit in the Inflation Reduction Act (IRA) will lower the effective cost of the projects. In the long term, CCCE may expand physical ownership of assets.
CCCE is exploring expanding the suite of tools it uses to supply load. While CCCE’s market (non-PPA) activities have traditionally focused on buying physical power at fixed prices, staff may explore financial tools that could reduce risk and diversify its portfolio.
Rate Design And Outlook
Utilizing cost-based ratemaking has two key advantages: passing through CCCE’s own costs and giving CCCE the flexibility to customize its rate structures to optimize customer need and financial stability. In order to avoid utilizing rate adders and likely needing to pursue frequent adjustments as a result of the volatile energy markets, the Southern California Edison territory customers will remain on IOU-minus rates for CY 23. In the next rate-setting cycle, CCCE intends to run a COS study that explicitly models cost across the entire service area and explore setting unified rates for PG&E and SCE. 6 Regulatory Outlook
CCCE is continuing to engage California’s policymakers and regulatory bodies to shape policy and regulations such that they can support and facilitate CCCE’s mission of a decarbonized grid and the goals adopted by the Policy Board. CCCE is investing in a professional lobbyist firm for additional and purposeful support during this period of unprecedented transformation in our industry and on California’s grid.
To meet its aggressive carbon emission reduction goals, California must see significant increases in renewable generation and energy storage within the next five years. The time is now, and the regulatory landscape should not become the roadblock to ensuring this transition can move forward. Technical and economic complexities of this transition are reflected in the increasing renegotiation of core policies governing the electricity sector, especially those responsible for grid reliability and greenhouse gas reduction planning. CCCE’s engagement in policymaking forums will help design the policies governing the future grid in ways that support CCCE’s mission, while informing CCCE resource procurement decisions based on evolving compliance needs and market frameworks.
As California’s policy framework evolves, CCCE will also work to ensure that the jurisdiction and authority of CCCE’s Boards are protected. CCAs are still a relatively new stakeholder in the electricity sector, and their expansion across California has required regulators to rethink how they design programs and plan implementation of state policy goals. CCCE will work to shape future policymaking in ways that support state policy goals while preserving the integrity and unique strengths of the CCA model.
CCCE will pursue these goals in both the regulatory and legislative arenas through a combination of individual advocacy, access to additional policy tools, and strategic collaboration with other stakeholders from across the energy sector. CCCE’s aggressive clean energy goals and proactive investment in new clean resources have already enabled staff to provide policymakers with insight into cutting-edge issues facing the grid. CCCE’s policy engagement in the next five years will enable CCCE to continue that leadership and use the insights it produces to move the entire sector forward.
STRATEGIC OUTLOOK: 2022-2027
7 STRATEGIC OUTLOOK: 2022-2027
Evolving Financial Architecture
STRATEGIC OUTLOOK: 2022-2027
CCCE has grown considerably from its startup days. It now serves over 430,000 customer meters, collects $400+ MM in revenue, processes over 2,400 vendor invoices, and disburses millions of dollars in grants. As such, the need to evolve and grow its financial architecture has increased. Over the next 2 years, CCCE will plan to automate its financial capabilities, increase the use of data and analytics, explore deploying an Enterprise Resource Planning (ERP) system, and continue expanding its treasury function. These measures will optimize cash management, improve budgeting and planning, increase efficiency, reduce staff workloads, and deliver customer insights which can enhance the customer experience.
Accelerating Climate Solutions
CCCE’s diverse service area requires strategic engagement with Member Agencies, legislators, customers, community organizations, and underserved communities to ensure all customers can access effective and impactful Energy Programs. CCCE will utilize innovative approaches to provide education, access, and support for customers to electrify their lives, affordably while helping to grow the local economy.
CCCE is investing $16 MM of new spend to build on the success of previous years’ Energy Programs. each year for the next five years. As CCCE achieves its goal of a decarbonized electric grid, the strategic push to electrify everything maximizes the benefits of a decarbonized grid by reducing GHG emissions in the transportation, building, and agricultural sectors.
The FY22/23 Energy Programs build upon federal and state transportation incentives by stacking local incentives for electric vehicles while investing significantly in publicly accessible and fleet charging infrastructure and utilizing third-party implementation services. CCCE is expanding its transportation electrification programs to reach additional customer segments, including medium and heavy-duty fleet owners. Future transportation electrification program developments will be informed by regional priority setting and planning to ensure investments are maximized and community needs are met.
CCCE will continue expanding efforts around building electrification through strategic partnerships like the TECH Clean California initiative while looking for opportunities to further catalyze market transformation and climate action. Expanded broadband opportunities, leveraged customer data, and increased customer engagement will enable CCCE to explore demand response and load mitigation efforts through deployed devises.
8 Revenue
• Demand Forecast: Total retail load is estimated at 5,235 GWh in 2023, including all the Southern California Edison Service areas that joined in 2021-22
• Rates for customers in the PG&E service territory: Starting January 2023, rates are forecast to decrease by 1c/kWh across the board. This results in rates of 10 c/kWh for Residential customers and a range of 9 c/KWh to 11 c/kWh for commercial and agricultural customers. These represent competitive rates 13% to 21% below PG&E’s current forecast of its 2023 rates • Rates for customers in the SCE service territory: SCE customers will be served with rates that are a discount of 2% versus SCE’s 2023 rates.
• Uncollectible: Estimated at approximately 1.75% of operating revenue. For 2023, an additional
1.25% was budgeted as a potential reduction in Reserve Fund contributions. This reflects the elevated level of receivables that CCCE, like utilities nationwide, is experiencing.
Expense
• Power Supply Forecast: Estimated at 5,561 GWH, or 106.2% of retail sales to account for transmission and distribution system losses
• Power Supply Cost: Driven by Energy and Resource Adequacy. The energy cost component including eligible renewable credits is estimated at $345 MM, or 90.6% of the total. Resource Adequacy component is estimated at $35.6 MM, or 9.2% of the total • Energy Programs: CCCE projects $16 MM in new spend on energy programs. This includes $2.2 MM in Agriculture Electrification, $4.6 MM in the Electrify Your Ride program, $2 MM in the Electric Bus program and $1.5 MM in the New Construction Electrification Program Risks And Upside/Downside
• Market Prices: Price increases in the energy and RA markets represent significant downside risk to this forecast. Price decreases represent potential upside to this forecast • Regulatory Risk: Changes in RA or procurement requirements and regulations represent significant downside risk to this forecast
• Supply Chain & PPAs: Further supply chain challenges could delay the projects CCCE expects to come online in late 2022 and in 2023. This represents downside risk to the forecast • Opt-Outs: While CCCE strives to deliver competitive rates, it faces competition from IOUs and retailers who can provide incentives or products CCCE currently does not. These competitors target revenue-generating customers, representing downside risk to this forecast.
FY22/23 BUDGET DRIVERS, ASSUMPTIONS & RISKS
9 FY22/23 BUDGET DRIVERS, ASSUMPTIONS & RISKS
• Inflation: Increases in prices and a tight labor market could make it more expensive for CCCE to complete projects than currently forecast. The Administrative Reserve Fund mitigates but does not eliminate this downside risk to the forecast
• Treasury: A rising interest rate environment benefits CCCE’s cash management activities and represents potential upside to this forecast
Reserve Fund
• At the end of FY 21/22, excess balances in the UPS Fund and uncommitted funds in the Program Fund will be combined with the existing IIRC Reserve Fund to form a single Reserve Fund Staffing and other Expenses
Staffing
Staff propose to implement a 5% Cost of Living Allowance (COLA) for employees. To keep y/y expense flat at $9.2 MM, employees will be moved up in their existing salary bands Data Manager & Utility Service Fees
Combined spend for CCCE’s billing, account receivable, and billing data services will decrease $0.8 MM y/y to $4.9 MM. This reflects savings negotiated in the move to a single Data Manager Technical Consulting
Specialized consulting services for a wide range of areas, reflecting staff vacancies and new endeavors such as energy storage, increased $1.1 MM y/y to $1.5 MM Contingency
For the first time, a $1.1 MM contingency was incorporated in CCCE’s budget. This will help cover inflationary costs and unexpected increases – reducing the need for midyear requests Legal Support
Legal Expenses to support current and anticipated litigation increased $0.8 MM. This includes expenses related to CCCE’s PPA disputes
10 PROJECTED CY 2023 RATES
• CCCE rates for the PG&E service area are projected to roll back 1 c/kWh from current levels. This delivers competitive rates 13%-21% below PG&E’s current projections of its 2023 rates • CCCE rates for the SCE service area will remain at 2% below SCE’s current projected rates • Rates are expected to be finalized by the IOUs in the November-December 2022 timeframe.
Should markets move significantly or regulatory shifts impose new costs, CCCE may have to modify these projected rates in December 2022
CUSTOMER CLASS CCCE Current Rates
Projected CCCE
2023 Rates
Projected PG&E
2023 Rates
Difference Between Projected PG&E 2023
Rates And Projected CCCE 2023 Rates
RES 0.12 0.10 0.13 -16%
SM COM 0.13 0.11 0.13 -17% MED COM 0.11 0.10 0.12 -21%
LG COM 0.11 0.09 0.10 -13%
AGR 0.11 0.10 0.11 -13%
SL 0.11 0.09 0.11 -16%
PROPOSED CCCE VS PG&E 2023 ERRA FORECAST
RATE GROUP CUSTOMER CLASS Projected CCCE 2023
Rates
Projected SCE 2023
Rates
Difference Between Projected SCE 2023 Rates
And Projected CCCE 2023 Rates
DOMESTIC RES $0.092 $0.094 -2%
TOU-GS-1 SM COM $0.092 $0.094 -2%
TOU-GS-2 MED COM $0.092 $0.094 -2%
TOU-GS-3 LG COM $0.078 $0.080 -2%
TOU-8 LG COM $0.070 $0.071 -2%
TOU-PA-2 MED AG $0.076 $0.077 -2%
TOU-PA-3 LARGE AG $0.063 $0.064 -2%
Street Lighting SL $0.048 $0.049 -2%
Traffic Control TC $0.074 $0.075 -2%
PROPOSED CCCE VS SCE 2023 ERRA FORECAST
11 CY 2023 CY 2024 CY 2025
Revenues 436 447 406
Costs
388 354 361
16 16 16
Cost of Energy
Energy Programs
Staffing and Support Services 24 25 25
Total Costs 428 395 402
Net Position 8 52 4
PG&E Rate Adder (c/Kwh) 2 2 0
End of Year Reserve Fund 187 234 239
End of Year Reserve Fund as % of Revenues 43% 52% 59%
CCCE Pro Forma 3-Year Financial Forecast ($ MM)
FY 22/23 Y/Y Change
Energy Programs: Community Programs
Electrify Your Ride 4.6 1.5
Agriculture Electrification 2 1.6
Electric Bus 2 1
Energy Programs: Member Agency Programs
Charge Your Fleet 1.25 1.25
Staffing and Support Services: Top 5 Expenditures
Compensation & Benefits 9.3 0.0
Data Manager 2.8 -1.0
IOU Service Fees 2.1 0.2
Legal 1.8 0.8
Technical Consultants 1.5 1.1
CCCE Pro Forma: Select Key Items ($ MM)
3-YEAR STRATEGIC FORECAST
12 • To provide greater clarity, only line items above $0.5 MM were included in this year’s presentation • Energy Program spend represents new direct program investment; it does not include approximately $1.85 MM of internal Energy Program support
• Energy prices remain volatile and there is significant downside risk to the forecast • Due to the difference between CCCE’s Fiscal Year (October – September) and Rate Year (January-December), there is a small (<$5 MM) difference in Cost of Energy between Rate Year 2023 and FY22/23.
However, the underlying cash flows are the same
LINE ITEM BUDGET NOTES
Aggregate Cost of Energy - RA, Energy, PPA $377,918,806.77 Data Manager $2,793,200.00
Service Fees - IOU $2,100,000.00
Advertising $500,000.04
Contingency $1,100,000.00
Subscriptions $611,062.14
Legal $1,844,660.20
IT Consulting $593,469.00
Other Consultants $563,000.00
Technical consultants $1,541,093.00
Employee welfare $1,086,405.60
Retirement plan contributions $707,508.36
Salaries and wages $7,042,640.36
Energy Programs $15,992,012.04 Direct Spend On Programs Bad Debt Allowance $7,500,000.00
Total $425,650,061.49
Key Administrative Expenditures >
$0.5 MM
CCCE FY 2022/23 Budget
FY2022/23 BUDGET
13 Staff augmentation with consultants, new initiatives requiring technical expertise, litigation, and a new contingency are the key drivers of changes to the budget for Staffing and Support Services.
Category Budget Total Y/Y Change (Non-Energy) Key Drivers $1,541,093 $1,126,221 +$1.1 MM Technical Consultants
$1,100,000 $1,095,418 New Administrative Reserve Fund
$1,844,660 $882,660 Ligitation Expenses
$593,469 $571,085 New Financial Data Platform & Staff Augmentation $350,768 $311,836 Anticipated increases in Cyber, E&O, O&D; RFPs planned Spring 2023 $307,600 $304,068 Customer satisfaction survey, translation services, marketing consultants $2,100,000 $206,560 Service Area Expansion and estimated SCE fees $269,305 $189,666 IT costs moved out to departments, new subscriptions, inflation $563,000 $163,956 Recruiting agencies
$399,996 $110,577 Potential expansion to 2nd floor of 70 Garden Court $500,000 $150,016 Increased public outreach
$148,876 $148,876 Return to pre-COVID travel, bottom-up by Divisions vs top-down from Finance $95,441 $78,668 IT costs moved out, inflation, multiple small adds $116,630 $74,450 Increasing recruiting advertising
$120,000 $45,000 Professional representation
$390,301 $34,665 Multiple adds to increase engagement and outreach across service area and region $74,629 $33,773 More on-site and in-person Board/CAC/Staff meeting $120,300 $32,949 More in-person events, professional development to increase staff capacity $45,000 $25,000 Increased in-person Board meetings
$30,000 -$20,000 Website rebuild costs wind down
$84,000 -$112,750 Fewer enrollment campaigns
$611,062 -$579,586 IT expenses split to divisions; reallocation of expenses from omnibus Subscription accounts Technical consultants
Contingency
Legal
IT Consulting
Insurance
Communications consultants
Service Fees - IOU
Small equipment & software
Other Consultants
Rent
Advertising
Travel
Dues & Subscriptions
Human resources and payroll
Legislative
Industry memberships and dues
Business meals
Conferences & prof
development Director's Fee Website
Required Mailings
Subscriptions
Data Manager $2,793,200 -$980,800 New Data Manager Contract Savings Total $3,892,307
FY22/23 BUDGET – Y/Y Staffing and Support Services
14 LONG-RANGE FORECAST ASSUMPTIONS & RISKS
Revenue
• Energy sales in kWh are projected to increase steadily over the 4-year period, reflecting the addition of Atascadero and small load growth of 0.4% in 2025 and 2026 • Energy sales in dollars are expected to decline 9% in 2025 and a further 5% in 2026, reflecting the pass-through of lower power supply costs via COS Rates and lower contributions to the Reserve Fund in 2025
• A new COS study will be launched in late 2023 to set rates for 2025 and beyond. Staff will explore unified rates across PG&E and SCE service areas in that study Power Expenses
• Power supply costs for CCCE are currently forecast to stabilize and decline over time as Power Purchase Agreements (PPAs) come online. Market energy prices are expected to remain volatile throughout the period. A new Resource Adequacy regulatory regime represents additional downside risk to the forecast
Reserve Fund
• The Reserve Fund will increase over the next 2 years to 52% of revenues, before becoming 64% of revenues in 2026. The increase in percentage is due to the projected increase in revenues – not new rate increases. This may set the stage for future rate reductions Risks And Upside/Downside
• The Year 2-4 forecasts should be viewed as indicative guides based on the best information available today. As the past 3 years have demonstrated, markets have made a regime shift – markets are in an inherently more volatile and complex environment than before • The uncertainty in power & natural gas market prices, regulatory requirements, supply chains and the macroeconomic environment are all downside risks to this forecast • Market stabilization, reductions in inflation and labor market tightness, and favorable regulatory decisions represent potential upside to this forecast
15 All projections are based on current market prices and hedge ratios. There is considerable downside risk to the forecast given market and regulatory volatility.
Revenues decline as the PG&E adders are eliminated, but the decline is somewhat offset by increases in load from the addition of Atascadero and small organic load growth.
CY 2023 CY 2024 CY 2025 CY 2026
Revenues 436 447 406 385
Costs
388 354 361 337
16 16 16 16
Cost of Energy
Energy Programs
Staffing and Support Services 24 25 25 25
Total Costs 428 395 402 378
Net Position 8 52 4 7
PG&E Rate Adder (c/kWh) 2 2 0 0
End of Year Reserve Fund 187 234 239 246
End of Year Reserve Fund as % of Revenues 43% 52% 59% 64% CCCE Pro Forma 4-Year Financial Forecast ($ MM)
LONG-RANGE PRO FORMA
16 ABOUT CCCE
In March 2017, the County Board of Supervisors from Monterey, San Benito, and Santa Cruz counties as well as City Councils in sixteen local communities established the Joint Powers Authority, originally called Monterey Bay Community Power. In December 2018, CCCE Policy Board approved the inclusion of the Cities of San Luis Obispo and Morro Bay to the agency. In December 2019, the JPA was further expanded to include the Cities of Arroyo Grande, Carpinteria, Del Rey Oaks, Goleta, Grover Beach, Guadalupe, Paso Robles, Pismo Beach, Santa Maria, Solvang, and the County of Santa Barbara. In 2020, The Board approved to change the agency name to Central Coast Community Energy and further voted to add the City of Buellton. In 2022 the City of Atascadero joins as the 34th member. CCCE is committed to reducing greenhouse gas emissions through local control of renewable electricity generation provided at competitive rates and the implementation of innovative energy programs that facilitate the electrification of the transportation and built environments. CCCE promotes long-term electric rate stability and energy security while reducing reliance on fossil fuels and stimulating the local economy.
17 CCCE MEMBERSHIP ENROLLMENT
2017
• CCCE established as Monterey Bay Community Power (MBCP) • Implementation Plan certified by the CPUC
Mar 2018
• Phase 1 enrollment launched - Commercial customers
Jun 2018
• Policy Board appoints the Community Advisory Council (CAC) July 2018
• Phase 2 enrollment launched - Residential customer & NEM • New 100% eligible renewable service offering, MBprime launched Dec 2018
• Cities of San Luis Obispo and Morro Bay join JPA
Dec 2019
• Cities of Arroyo Grande, Carpinteria, Del Rey Oaks, Goleta, Grover Beach, Guadalupe, Paso Robles, Pismo Beach, Santa Maria, Solvang and Santa Barbara County join JPA
Jan 2020
• Phase 3 enrollment launched - Enrollment of the Cities of San Luis Obispo and Morro Bay
Jan 2021
• Phase 4 enrollment launched - Enrollment of 100,000 customers in Del Rey Oaks, Paso Robles, Pismo Beach, Grover Beach, Arroyo Grande, Santa Maria, Guadalupe, Solvang and Northern Santa Barbara County 18 CCCE MEMBERSHIP ENROLLMENT cont.
Oct 2021
• Phase 5 enrollment launched - Enrollment of customers in Carpinteria, Goleta, and Southern Santa Barbara County
Jan 2022
• Phase 6 enrollment launched - Enrollment of customers in Buellton Jan 2024
• Expected - Phase 7 enrollment launched - Enrollment of customers in Atascadero
• Phase 2 enrollment launched - Residential customer & NEM • New 100% eligible renewable service offering, MBprime launched • Cities of San Luis Obispo and Morro Bay join JPA
• Cities of Arroyo Grande, Carpinteria, Del Rey Oaks, Goleta, Grover Beach, Guadalupe, Paso Robles, Pismo Beach, Santa Maria, Solvang and Santa Barbara County join JPA
• Phase 3 enrollment launched - Enrollment of the Cities of San Luis Obispo and Morro Bay
• Phase 4 enrollment launched - Enrollment of 100,000 customers in Del Rey Oaks, Paso Robles, Pismo Beach, Grover Beach, Arroyo Grande, Santa Maria, Guadalupe, Solvang and Northern Santa Barbara County 19 OUR BOARDS
CCCE is governed by the Policy Board and the Operations Board. Upon adoption of the 5th Amendment to the Joint Powers Agreement, each Board will be comprised of 18 seats representing the 34 Member Agencies. Both Boards will invite non-seated members to participate in meetings as non-voting members. Policy Board Members are elected officials from CCCE member communities and Operations Board Members are appointed executives leading the member cities and counties.
The Policy Board formed the CCCE Community Advisory Council comprised of 15 members appointed from member communities.
20 2022 POLICY BOARD
Chair
Steve McShane
City of Salinas
Vice Chair
Das Williams
County of Santa Barbara
Director
Yvette Brooks
City of Capitola
Director
Anna Velazquez
City of Soledad
Director
Dolores Morales
City of Hollister
Director
Amy Tomlinson
City of Pacific Grove
Director
Mary Adams
County of Monterey
Director
Jan Marx
City of San Luis Obispo
Director
Donna Meyers
City of Santa Cruz
Director
Francisco Estrada
City of Watsonville
Director
Kollin Kosmicki
County of San Benito
Director
Mary Ann Carbone
City of Sand City
Director
Alice Patino
City of Santa Maria
Director
Ed Waage
City of Pismo Beach
Director
Bruce McPherson
County of Santa Cruz
Director
Claudia Orona
City of Solvang
Director
Wade Nomura
City of Carpinteria
21 2022 OPERATIONS BOARD
Chair
Carlos Palacios
County of Santa Cruz
Vice Chair
Jamie Goldstein
City of Capitola
Director
Jim Pia
City of Salinas
Director
Vibeke Norgaard
City of Sand City
Director
Charles McKee
County of Monterey
Director
Chip Rerig
City of Carmel- by- the Sea
Member
Ray Espinosa
County of San Benito
Director
Matt Huffaker
City of Santa Cruz
Director
Brent Slama
City of Soledad
Director
Rene Mendez
City of Watsonville
Director
Brett Miller
City of Hollister
Director
Derek Johnson
City of San Luis Obispo
Director
Peter Imhof
City of Goleta
Director
James Lewis
City of Pismo Beach
Director
Xenia Bradford
City of Solvang
Director
Mona Miyasato
County of Santa Barbara
Member
Jason Stillwell
City of Santa Maria
22 2022 COMMUNITY ADVISORY COUNCIL
Chair
Seth Capron
County of San Benito
Vice Chair
Katie Davis
County of Santa Barbara
Member
Norman Groot
County of Monterey
Member
Richard Stedman
County of Monterey
Member
Michael Termini
County of Santa Cruz
Member
Stephen Snodgrass
County of Santa Cruz
Member
Jeff Byron
County of Monterey
Member
Dennis Osmer
County of Santa Cruz
Member
Wayne Norton
County of San Benito
Member
Brandon O’Rourke
County of San Luis Obispo
Member
Heather Allen
County of Santa Barbara
Member
John Hughes
County of Santa Barbara
Member
Bruce Severance
County of San Luis Obispo