Agenda packet — Central Coast Community Energy (3CE) Operations Board, September 21, 2022

Operations Board of Directors
Wednesday, September 21, 2022
4:45 PM
Monterey Conference Center
1 Portola Plaza
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 Operations Board of Directors meeting at: https://3cenergy.hylandcloud.com/203agendaonline/Meetings/Search?dropid=4 a. 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, Board 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.

2. If you choose not to attend the CCCE Operations Board of Directors 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:

To have your comments distributed to the Board 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 Board after the meeting. Please submit your comment to the Clerk of the Board 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., Operations Board 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/s/82380649701
Or join by phone:

Dial for higher quality, dial a number based on your current location):

US: +1 669 900 6833 or +1 669 219 2599
Enter this Webinar ID Number: 823 8064 9701 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 Board, please provide 15 copies and hand them to a member of CCCE staff or Heather Vowell, Board Clerk, who will distribute the information to the Board members and other staff.

The public may comment on a specific item listed on this agenda when the Board 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 Board, 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 Board 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
. Pledge of Allegiance
. Public Comment on Matters Not Listed on the Agenda
The public may provide comments on any item within the Board's jurisdiction but not on the Agenda.

The Board may not take action at this meeting on any item not listed on the Agenda other than to refer the matter to staff or sset it for a future meeting. Speakers are limited to 3 minutes each. . Corrections and Additions
The Board Clerk will announce agenda corrections and proposed additions of emergency, urgency, or continued items, which will be acted on by the Board as provided in Sections 54954.2 of the California Government Code.

CONSENT AGENDA

1. Approve Minutes from the August 10, 2022 Meeting of the Operations Board (Action Item)

2. Consider Finding, Pursuant to AB 361 and in order for the Operations Board of Directors to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Operations Board of Directors 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)

3. Adopt Resolution No. OB-2022-02 Attesting to the Veracity of CCCE’s 2021 Power Content Label (Action item)

4. Approve Contract with Braun, Blaising, & Wynne for Legal Services in an Amount not to Exceed $130,000 in a Contract Year or $260,000 Total (Action Item)

5. Update Regarding Chair's Appointment of a CEO Selection Committee (Information Only)

6. Treasurer's Report (Information Only)

7. Authorize CEO to Execute a Standard Services Agreement with Maher Accountancy for Accounting and Annual Audit Assistance Services with a Not to Exceed Amount of $259,000 (Action Item)

REGULAR AGENDA

8. Community Advisory Council's Report (Discussion Item)

9. CEO's Report (Discussion Item)
a. Staffing Update
b. Labor Day Heat Wave Impacts
c. AB 846 Diablo Canyon
d. Inflation Reduction Act
e. Data Manager / Call Center Transition
Board Member Reports & Comments (Information Only)
Adjournment

MINUTES
The meeting was called to order at 10:32 A.M. with 13 members attending via teleconference pursuant to AB 361 and a quorum established.

Directors Present: Espinosa, Greene, Johnson, McKee, McCloud, Miller, Miyasato, Norgaard, Pia, Rerig, Slama, Vice Chair Goldstein, Chair Palacios
Directors Absent: Bradford (arrived at 10:35 am), Huffaker (arrived at 10:36 am), Lewis, Stilwell (arrived at 10:36am)
The Chair opened the public comment period for items not listed on the agenda or public comments on the consent agenda.

No public comment received.

The Chair closed public comment period.

Clerk announced that there were no corrections or additions to the agenda

CONSENT AGENDA
MOTION: Moved by Director Johnson seconded by Director Miller to approve the Consent Agenda.

ACTION: The Motion Carried with a roll call vote: 13/0/4 AYES: Espinosa, Greene, Johnson, McKee, McCloud, Miller, Miyasato, Norgaard, Pia, Rerig, Slama, Vice Chair Goldstein, Chair Palacios
Operations Board of Directors
Wednesday, August 10, 2022
10:30 AM
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940
NOES: None
ABSENT: Bradford, Huffaker, Lewis, Stilwell

1. Approved Minutes from the June 30, 2022 Meeting of the Operations Board as submitted

2. Found, Pursuant to AB 361 and in order for the Operations Board of Directors to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Operations Board of Directors 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.

3. Authorized the CEO to Execute Amendment No. 1 to Agreement with Cohen Ventures, Inc. DBA Energy Solutions Extending Term of the Agreement by One (1) year to September 30, 2023 and to Reflect Adjusted Fees and Incentive Levels with no Change to the Not to Exceed Amount

4. Authorized CEO to Execute an Agreement with TRC Engineers, Inc. for Consulting Services In Support of Member Agency Reach Code Adoption in an Amount Not to Exceed $121,935 and a Term Ending September 30, 2023.

5. Authorized the CEO to Execute Amendment No. 1 to Agreement with Aiqueous, LLC to Add $33,750 for Additional Energy Program Services for a Total Not to Exceed Amount of $464,250.00 and No Additional Time.

6. Treasurer’s Report (Information Only)

REGULAR AGENDA

7. CEO's Report (Discussion Item)
a) Staffing Updates
b) Recruitment Updates
c) Impacts of PPA Deliverability and Market Volatility
d) Financial Security Requirement/ Provider of Last Resort e) Customer Arrearage Payment Plan Funding
f) Front Of The Meter Energy Storage
The Chair opened the public comment period.

The following individual(s) addressed the Board.
 Brett Garrett
The Chair closed public comment period.

ACTION: Discussion Item; no action required

8. Authorized CEO to Execute Prepay Transaction Legal Services Agreement with Nixon Peabody in an Amount Not to Exceed $600k.

The Chair opened the public comment period.

No public comment received.

The Chair closed public comment period.

MOTION: Moved by Director McKee, seconded by Director Miyasato to approve.

ACTION: The Motion Carried with a roll call vote: 16/0/1 AYES: Bradford, Espinosa, Greene, Huffaker, Johnson, McKee, McCloud, Miller, Miyasato, Norgaard, Pia, Rerig, Slama, Stilwell, Vice Chair Goldstein, Chair Palacios
NOES: None
ABSENT: Lewis

9. Authorized the CEO to Execute Agreement with Capco Consulting Services LLC In a Form Substantially Similar to the Attached and Subject to Approval by CCCE General Counsel for a Term of 18 Months and a Not to Exceed Amount of $700, 000.

The Chair opened the public comment period.

No public comment received.

The Chair closed public comment period.

MOTION: Moved by Vice Chair Goldstein, seconded by Director Miyasato to approve.

10. Supports The Framework Of and Key Changes Proposed In The CCCE FY 2022-23 Operating Budget The Chair opened the public comment period.

No public comment received.

The Chair closed public comment period.

MOTION: Moved by Director Johnson, seconded Vice Chair Goldstein approve.

CLOSED SESSION

11. Closed session under Government Code 54950 relating to the following items a. Pursuant to Government Code section 54956.9(d)(1), the Board will confer with legal counsel regarding one item of existing litigation: Castro v. Monterey Bay Community Power (Monterey County Superior Court case no. 20CV001540)
b. Pursuant to Government Code section 54956.9(d)(4), the Board will confer with legal counsel regarding one item of potential initiation of litigation
The Chair opened the public comment period on closed session items.

No public comment received.

The Chair closed public comment period.

General Counsel Announced that there will be no reportable action taken in closed session and the meeting will adjourn thereafter.

Recessed to closed session at 11:43am
Adjourned at 11:58am
Staff Report Item 2
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Consider Finding, Pursuant to AB 361 and in order for the Operations Board of Directors to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Operations Board of Directors 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)
DATE: September 21, 2022
RECOMMENDATION:

This recommends the Operations Board (“Board”) find, pursuant to AB 361 and for the Board to continue meeting remotely, that the COVID-19 pandemic State of Emergency declared by Governor Newsom is still in effect; the Board 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.

The Monterey County Health Officer has recommended social distancing measures for meetings of legislative bodies, so the Board were able to meet remotely the first time after September 30, 2021. To continue meeting remotely, the Boards 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 Board’s consideration and finding that the COVID-19 pandemic State of Emergency declared by Governor Newsom is still in effect; the Board 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 Board to continue meeting remotely under the procedures established by AB 361.

Staff Report Item 3
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Adopt Resolution No. OB-2022-02 Attesting to the Veracity of CCCE’s 2021 Power Content Label (Action item)
DATE: September 21, 2022
RECOMMENDATION:

This recommends the Operations Board of Directors adopt Resolution No. OB-2022-02 attesting to the veracity of CCCE’s 2021 Power Content Label.

BACKGROUND:

California Public Utilities Code requires all retail sellers of electricity to disclose “accurate, reliable, and simple-to-understand information on the sources of energy, and the associated emissions of greenhouse gasses, that are used to provide electric services.” (Pub. Util. Code section 398.4).

The disclosure and reporting requirements are implemented through the California Energy Commission’s (“CEC”) Power Source Disclosure (“PSD”) Program. Under the PSD Program, by October 1 of each year all retail sellers must provide customers a Power Content Label (“PCL”) that disclosures the fuel mix and greenhouse gas emission intensity of each electricity portfolio sold in the previous calendar year. (20 Code Cal. Regs. section 1394.1).

The PCL is a highly prescriptive reporting requirement that requires all load serving entities to utilize detailed accounting rules to report on retail sales. (20 Code Cal. Regs. section 1393).

The applicable regulations require that the “a board of directors of a public agency submit to the Energy Commission an attestation of the veracity of each annual report and [PCL] for the previous year.” (20 Code Cal. Regs. section 1394.2(a)(1)).

DISCUSSION/ANALYSIS:

During the 2021 calendar year, CCCE delivered a portion of its electric energy supply from various Renewables Procurement Standard (RPS) eligible energy sources.

CCCE’s RPS percentage for 3Cchoice was 38.4%. 11.8% of CCCE’s 2020 3Cchoice portfolio were sourced from large hydro, and the remaining 49.8% was from unspecified power. For 3Cprime, CCCE’s product mix was 100% RPS energy, split evenly between solar and wind resources.

While preparing CCCE’s 2021 PCL, staff performed a detailed review of all power purchases completed for the 2021 calendar year. The review of CCCE’s 2021 3Cchoice and 3Cprime product offerings included an inventory of all renewable energy transfers within CCCE’s Western Renewable Energy Generation Information System (WREGIS) accounts and other pertinent transaction records.

Following the Board’s approval, CCCE will complete requisite customer communications in accordance with the October 1 deadline.

Should the Board choose not to adopt Resolution No. OB-2022-02, staff will file an extension with the CEC and hire an independent auditor to review CCCE’s two product offerings’ data for compliance.

FISCAL IMPACT:

The Board’s self-certification of the 2021 3Cchoice and 3Cprime offerings and adoption of Resolution No. OB-2022-02 avoids the costs that would otherwise be incurred for an independent auditor certification.

CONCLUSION:

Approval of this recommendation and adoption of Resolution No. OB-2022-02, staff shall forward to the CEC: (1) a copy of this staff report and related meeting minutes; (2) a copy of CCCE’s Resolution No. OB-2022-02 attesting to the veracity of CCCE’s 2021 Power Content Label.

ATTACHMENT(S):

1. Draft Resolution No. OB-2022-02 Attesting to the Veracity of CCCE’s 2021 Power Content Label

2. 2021 CCCE Power Content Label
RESOLUTION NO. OB‐2022-02

A RESOLUTION OF THE OPERATIONS BOARD OF DIRECTORS OF CENTRAL COAST COMMUNITY ENERGY ATTESTING TO THE ACCURACY OF CCCE’S 2021 POWER

CONTENT LABEL
WHEREAS, Central Coast Community Energy (“CCCE”) is a Joint Powers Agency established and operated pursuant to California Government Code section 6500 et seq. to provide retail energy service and to study, promote, develop, conduct, operate, and manage energy programs in the California Central Coast region of Santa Cruz, Monterey, San Benito, Santa Barbara Counties, and certain cities within San Luis Obispo County; and WHEREAS, the California Public Utilities Code sections 398.1 through 398.5 require all retail sellers of electric energy, including CCCE, to disclose “accurate, reliable, and simple‐to‐understand information on the sources of energy” that are delivered to their respective customers; and
WHEREAS, CCCE completed a detailed review of all renewable energy purchases and any transfers within CCCE’s Western Renewable Energy Generation Information System (WREGIS) accounts and other pertinent transaction records related to power purchases for the 2021 calendar year; and
WHEREAS, staff presented the Operations Board, for its review, the 2021 Power Content Label for all retail energy product portfolios, including 3Cchoice and 3prime; and NOW, THEREFORE, the Operations Board of Directors of Central Coast Community Energy does hereby resolve, determine, and order as follows:

1. CCCE is a public agency providing electric services; and

2. The Board has reviewed the 2021 CCCE Power Content Label and considered all relevant evidence and information provided which relates to the retail energy product portfolios for 2021 3Cchoice and 3Cprime energy products.

3. CCCE’s 2021 3Cchoice energy product was 38.4% RPS eligible, 11.8% large hydropower, and the remaining 49.8% of the portfolio consisting of unspecified power.

4. CCCE’s 2021 3Cprime energy product was 100% RPS eligible with 50% of energy derived from solar and 50% derived from wind resources.

5. The Board attests to the veracity of CCCE’s annual report and power content label for 2021.

PASSED AND ADOPTED by the Operations Board of Central Coast Community Energy this 21st day of September 2022 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:
_____________________________
Chair, Carlos Palacios
Attest:
_____________________________
Board Clerk, Heather Vowell
Copy of 2021 Power Content Label
Staff Report Item 4
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Approve Contract with Braun, Blaising, & Wynne for Legal Services in an Amount not to Exceed $130,000 in a Contract Year or $260,000 Total (Action Item) DATE: September 21, 2022
RECOMMENDATION:

Staff recommend that the Board approve the attached contract with Braun Blaising & Wynne, P.C. (“BB&W”).

BACKGROUND:

In 2018, CCCE contracted with BB&W to provide external regulatory counsel services to CCCE. The contract has been renewed annually.

DISCUSSION/ANALYSIS:

External regulatory counsel serves several important functions in CCCE’s policy work, and as CCCE’s primary external regulatory counsel BB&W has performed all of them. Most importantly, regulatory counsel facilitates successful participation in state regulatory agency stakeholder proceedings. CCCE engages most often with the California Public Utilities Commission (CPUC) but also with the California Energy Commission (CEC) and the California Air Resources Board (CARB). Each agency has unique protocols and procedures that must be followed to provide input on potential new regulations and demonstrate compliance with existing ones. BB&W’s attorneys assist CCCE in both the development and filing of compliance reports, comments, and other documents necessary to ensure that CCCE meets its compliance obligations and is represented in the policymaking conversation.

Second, external counsel has historically played an important role in inter-CCA advocacy collaboration.

In proceedings where CalCCA, the statewide CCA trade organization, is not active, the CCA community is often represented by a group of CCAs working together to develop positions on the policy questions at stake and file comments and testimony supporting them. External legal counsel representing these CCAs jointly serves as an organizing point for the group, providing space for discussion and drafting the filings based on the consensus of the group.

Finally, regulatory counsel serves an important monitoring and research function, drawing on the legal history of CCAs to help solve problems and answer new questions as they arise in the present. BB&W is one of the most experienced and active legal firms in California on CCA regulatory and policy issues, and CCCE benefits from access to their knowledge of CCA legal and regulatory history.

BB&W has performed satisfactorily during the tenure of the current contract and CCCE staff see benefit to the agency from continuing to work with BB&W in the future.

FISCAL IMPACT:

If approved, the attached contract would be effective on October 1, 2022, and continue in effect through September 30, 2024, unless terminated early per the terms of the contract. The contract has a not-to-exceed amount of $260,000.00 over two years equating to $130,000.00 annually. This represents a continuation of the current level of funding, which has proved sufficient to meet CCCE’s needs during the tenure of the current contract. This will be paid out of the FY 22-23 Budget where it was budgeted as a Regulatory & Legal Affairs expenditure.

CONCLUSION:

For the past 4 years, BB&W performed satisfactorily and continues to demonstrate value to CCCE through its contributions to regulatory and legal work. Staff recommends that the Board renew the attached contract so that this work can continue.

ATTACHMENT(S):

1. Braun, Blaising, & Wayne Contract for Legal Services 1 Third Legal Services Agreement
This Third Legal Services Agreement (Agreement), effective as of latest date set forth in the signature block, is entered into by and between Central Coast Community Energy (Client), and Braun Blaising & Wynne, P.C., a California professional corporation (Firm). The Firm and the Client shall be collectively referred to herein as the Parties.

A. The Firm provides regulatory and legal services related to, among other things, rates, rules, policies and regulations affecting Community Choice Aggregation (CCA) programs.

B. The Parties entered into legal services agreements, dated July 5, 2018 (First Agreement) and August 14, 2019, as amended on August 14, 2020, and November 5, 2021, (Second Agreement), by which the Firm has been providing legal and regulatory services in support of the Client’s CCA program, including the provision of certain joint services provided by the Firm to the Client and other CCA clients (CCA Group).

C. The Parties are interested in entering into this Agreement to replace the currently effective Second Agreement, as amended, and to set forth the terms and conditions, and budgetary limitation, associated with the Firm’s provision of legal and regulatory services.
- Agreement -

The Parties agree as follows:

1. Term and Termination. This Agreement shall be effective on October 1, 2022, and shall continue in effect through September 30, 2024, unless earlier terminated as described below. The Second Agreement, as amended, shall terminate on the effective date of this Agreement. For the avoidance of doubt, it is the intention of the Parties that this Agreement shall succeed and replace services provided under the Second Agreement, such that there is no lapse in services provided by the Firm to the Client. Either Party may terminate this Agreement by providing no less than 30 days written notice.

2. General Scope of Services. The Firm shall provide (a) regulatory and legal services, as directed and authorized by the Client, in support of the Client’s CCA program, as described further in Section 3(a), (b) joint representation of Client and other participants in the CCA Group on matters before California regulatory agencies, as described further in Section 3(b), and (c) joint reporting services provided by the Firm to the Client and to the CCA Group, as described further in Section 3(c).
/
2 3. Fees and Description of Services.
(a) Individual Client Services: For services provided under this Agreement directly to the Client, as requested and authorized by the Client, the Client shall pay the Firm in accordance with the following hourly rates for the following categories:

Senior Shareholders: $450
Junior Shareholders: $400
Senior Attorney: $370
Senior Associates: $345
Junior Associates: $300
Paralegal / Law Clerk: $170
Administrative Assistant: $65
(b) Joint Representation: As authorized by the Client and other clients in the Firm’s CCA Group, the Firm shall provide joint representation on various regulatory matters at the California Public Utilities Commission (CPUC). The Client’s share of such joint services shall generally be its pro-rata share, but in any event shall be described to and authorized by the Client. Costs associated with joint representation shall generally be setup as a separate matter in the Firm’s accounting system. Further information regarding joint representation is described in Section 8.
(c) Regulatory Reports and Summaries: The Firm provides a variety of regulatory reporting services. On a fixed-fee basis, the Firm shall continue to provide regulatory reports on the same basis as provided under the Second Agreement, namely (1) a bi-weekly, comprehensive regulatory report, (2) alternate week email regulatory bulletins (3) agenda summaries of energy-related items on the CPUC’s meeting agenda and (4) an email report on the outcome of energy-related items on the CPUC’s meeting agenda. The current monthly fee for this service is $1,750 but may be adjusted upward or downward based on mutual written agreement of the Parties. In addition to these regulatory reports, the Firm also provides regulatory summaries of issues and activities of interest to the CCA Group. The cost of this service will be shared on a pro-rata basis among participating clients. At any time, upon written notice from the Client, the Client may suspend or modify the scope of either the regulatory reports or the regulatory summaries.
(d) Hourly Rates: All office, research, and meeting time shall be billed at the hourly rates set forth above.
(e) Annual Adjustment: The hourly rates for services provided under this Agreement, including the hourly rate for any contract attorney(s), are reviewed annually by the Firm on or about June 1, and are subject to adjustment on no less than 30 days written notice. (f) Not to Exceed Budget: The total amount of charges under this Agreement shall not exceed $130,000 per contract year (or a total of $260,000) without the express written consent of the Client. The Firm will make reasonable efforts to inform the Client two months before the Firm believes that charges under this agreement will likely exceed $104,000 in a given year.
3 (g) Other Attorney(s): As needed and as authorized by the Client, the Firm may contract with other attorney(s) to provide services under the guidance and direction of the Firm’s assigned attorney (Scott Blaising). The Firm will provide advance notice to the Client of the hourly rates for attorneys with whom the Firm has contracted for services provided under this Agreement. The Client will be billed at the specified hourly rate for the contract attorney(s) regardless of the amount of charge to the Firm for services provided by the contract attorney(s). (h) Other Providers: As needed and as authorized by the Client, the Firm may contract with electric industry professionals (e.g., rate consultants, etc.) (Other Provider(s)) in order to perform Client-directed tasks. In the event that such tasks are authorized, and the Client wishes the Firm to pay Other Providers on the Client’s behalf, the Client and the Firm will agree on a reasonable administrative fee for consolidated billing, not to exceed 10%.

4. Costs and Expenses. In addition to the fees set forth above, the Client shall reimburse the Firm for all pre-approved out-of-pocket costs and expenses actually incurred by the Firm in connection with the legal services provided by the Firm. Out-of-pocket costs and expenses include, but are not necessarily limited to, travel expenses, and reproduction and postage costs associated with representation of the Client in regulatory or other legal proceedings. Reproduction and postage costs otherwise incurred in the normal course of business are considered Firm overhead and will not directly be charged to the Client.

5. Billing and Payment. The Firm shall provide monthly invoices to the Client for all fees and expenses. The invoice shall be itemized to include, at a minimum, the time spent by each service provider, the total time spent by each service provider, a description of services performed, and a description and itemization of costs and expenses. The Firm shall bill the Client in minimum increments of 1/10th of an hour. Invoices shall be considered due and payable upon receipt and shall be overdue after 30 days of receipt.

6. Notices. All notices, invoices, reports or other communication required herein shall be properly given if delivered via electronic mail, or other mutually acceptable means, to the following addresses:

Client: Central Coast Community Energy
Attention: Hilary Staver
[email protected]
Firm: Braun Blaising & Wynne, P.C.

Attention: Scott Blaising
[email protected]

7. Independent Contractor. The Firm is and shall be considered an independent contractor with respect to the performance of services under this Agreement.

8. Joint Representation and Conflict Waiver.

4 (a) The Firm currently represents several clients that have operational CCA programs. The Firm also represents the California Community Choice Association, an association of CCA programs. (See Exhibit A, which reflects the Firm’s current list of clients.) Together with the Client, these CCA clients shall be referred to below as “CCA Clients.” The Firm anticipates that it will from time to time provide joint representation of the CCA Clients before the CPUC, whether directly or indirectly through a coalition or other organizational structure. This section generally describes the contemplated joint representation and requests written consent to the Firm’s joint representation. This section also describes potential conflicts and requests written consent to the Firm’s continuing representation in such circumstances. (b) The Firm does not believe that the Firm’s joint representation of the CCA Clients presently involves any actual conflicts of interest. The Client should be aware, however, that such representation may involve potential conflicts and that the interests and objectives of each of the participants individually on certain issues may, at some time in the future, become inconsistent with the interests and objectives of the other participants. The Firm’s joint representation has implications, which the Client should consider. For example, rather than vigorously asserting a single participant's interest on an issue, it is likely that the Firm will balance interests between the participants represented. Because individual participants may have different talents, energy, personal goals, and financial resources, sole representation of one participant could result in more aggressive advocacy, and hence more favorable treatment, for that participant compared to the more even-handed approach the Firm may follow in representing multiple interests. Joint representation may also result in the loss of the attorney-client privilege for communications between you and members of the Firm, because anything disclosed by one participant on a matter of common interest could be disclosed to a jointly represented client in a civil proceeding between the two participants. (c) The Firm will make every effort during the course of joint representation to confirm that the participants continue to have a commonality of interest in connection with the positions asserted. If interests diverge during the course of joint representation, further disclosure and waiver of the conflict, or withdrawal from representation, could be necessary. (d) In addition to the joint representation described above, the Firm also represents numerous public agencies in California on diverse matters of energy law and regulation. Therefore, it is possible that, while the Firm is representing the Client, certain types of conflicts may arise in matters unrelated to the present engagement for which the Firm requests the Client’s consent and waiver now. Present or future clients, including clients who rely upon the Firm for general representation, may ask the Firm to represent them in transactions or litigation adverse to the Client. The Firm would decline the other representation if the Firm believes there is a risk of misuse of the Client’s confidential information. (e) By signing this Agreement, the Client confirms (i) that the Client has been informed as to the nature of potential conflicts that may arise as a result of the Firm’s joint representation and the Firm’s representation of other clients; (ii) that the Client has been provided a reasonable opportunity to seek the advice of independent counsel regarding potential conflicts and waiver thereof; (iii) that the Client understands an actual conflict may arise in the future that would require an additional disclosure and waiver, or, alternatively, withdrawal by the Firm; (iv) that the Client agrees that the Firm may represent other clients as described herein, 5 including clients in unrelated matters adverse to the Client; and (v) that the Client hereby waives any claim of conflict of interest arising from such representation.

9. Insurance
(a) Malpractice Insurance. Without limiting the provisions of this Agreement relating to indemnification and defense, the Firm, at its expense, shall maintain in full force and effect during the period of performance of this Agreement and for three years thereafter, professional malpractice insurance that covers the services provided pursuant to this Agreement in the amount of not less than $1,000,000, with an insurance carrier authorized to do business in California.
(b) Other Insurance. The Firm, at its expense, shall also maintain during the period of performance of this Agreement and for three years thereafter, insurance as follows:
(1) General liability: (with coverage at least as broad as ISO form CG 00 01 10 01) coverage in an amount not less than $2,000,000 general aggregate and $1,000,000 per occurrence for general liability, bodily injury, personal injury, and property damage.
(2) Automobile liability: (with coverage at least as broad as ISO form CA 00 01 10 01, for “any auto”) coverage in an amount not less than $1,000,000 per accident for personal injury, including death, and property damage.
(3) Workers' compensation and employer's liability: coverage shall comply with the laws of the State of California.
(c) Primary. The Firm’s insurance is primary to any other insurance available to the Client with respect to any claim arising out of this Agreement. Any insurance maintained by the Client shall be excess of the Firm’s insurance and shall not contribute with it.

The Firm’s endorsement of insurance shall include a waiver of any rights of subrogation against the Client, and its directors, officers, employees and agents.

10. Miscellaneous.
(a) This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California, exclusive of conflict of laws provisions. (b) This Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof.
(c) This Agreement may not be modified or amended without the express written agreement of the Parties.
(d) This Agreement may be executed in any number of counterparts, including through facsimile signatures, and upon execution by the Parties, each executed counterpart shall have the same force and effect as an original document and as if the Firm and 6 the Client had signed the same document. Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Agreement identical in form but having attached to it one or more signature pages.

(e) This Agreement may be scanned and stored in electronic format. Neither Party shall object to the admissibility of an electronic version of this Agreement on the basis that such was not originated or maintained in documentary form.

11. Signature. In witness whereof, the Parties have caused this Agreement to be executed by their duly authorized representatives.

Client Firm

__________________________ ________________________
Tom Habashi Scott Blaising
Title: CEO Title: Principal/Shareholder
Date: ________________ Date: ________________
APPROVED AS TO FORM:
________________________
Counsel for Client
Exhibit A
Representative List of Clients
Braun Blaising & Wynne, P.C.
(September 2022)

Balancing Authority of Northern California (BANC)
California Choice Energy Authority (CalChoice)
Cities of Lancaster, Pico Rivera, Pomona, Rancho Mirage, San Jacinto, and Santa Barbara California Community Choice Association (CalCCA)
California Community Power (CC Power)
California Municipal Utilities Association (CMUA)
Central Coast Community Energy
Clean Energy Alliance
Clean Power Alliance of Southern California
City of Cerritos
City of Colton
City of Corona
East Bay Community Energy
Eastside Power Authority
City of Escondido
Friant Power Authority
City of Indio
City of Industry
Kirkwood Meadows Public Utilities District
Lamb Energy (City of Coachella)
Lathrop Irrigation District
City of Los Angeles, Department of Water and Power
Marin Clean Energy
Merced Irrigation District
Minter Field Airport District
City of Moreno Valley
City of Needles
Orange Cove Irrigation District
City of Pasadena
City of Pittsburg (Pittsburg Power Company)
Peninsula Clean Energy Authority
Pioneer Community Energy
Port of Stockton
Power and Water Resources Pooling Authority (PWRPA)
City of Rancho Cucamonga
City of Redding
Redwood Coast Energy Authority
City of Roseville
Sacramento Municipal Utility District (SMUD)
Salt River Project
San Diego Community Power
San Luis and Delta-Mendota Water Authority
Seattle City Light
City of San Jose
City of Shasta Lake
Silicon Valley Clean Energy
Sonoma Clean Power Authority
Southern California Public Power Authority
Turlock Irrigation District
University of California (Office of the President)
City of Victorville
Staff Report Item 5
TO: CCCE Operations Board of Directors
FROM: Carlos Palacios, Operations Board Chair
SUBJECT: Update Regarding Chair's Appointment of a CEO Selection Committee (Information Only)
DATE: September 21, 2022
RECOMMENDATION:

In preparation for Central Coast Community Energy’s CEO Tom Habashi’s retirement, I have appointed an ad hoc selection committee to support the recruitment and selection process for a new CEO. I have further requested staff develop opportunities for the public to offer feedback during the process.

BACKGROUND:

The CCCE Joint Powers Agreement (“JPA”) provides the process by which CCCE’s CEO is recruited, selected, and appointed.
“The Operations Board shall present nomination(s) of qualified candidates to the Policy Board.” JPA section 3.4.
“The Policy Board shall make the selection and appointment of the CEO who […] will serve at the will and at the pleasure of the Policy Board.” JPA section 3.4, see also section 3.3.3(c).

The CCCE Operating Rules and Regulations Article VII section 1 permits each Board Chair to appoint ad hoc committees.

DISCUSSION/ANALYSIS:

Mr. Habashi has served as CCCE’s CEO since the formation of CCCE (then MBCP). Mr. Habashi intends to retire from his position on March 31, 2023.

In response to Mr. Habashi’s retirement announcement, the recruitment process shall proceed from September 22, 2022, with an expected close of October 27, 2022.

As Chair, I am appointing a selection committee consisting of myself and Directors Miyasato and Johnson. The appointed selection committee will interview qualified candidates in early November and nominate the top two or three qualified candidates to the Policy Board for final interviews. I recommend the Policy Board similarly establish an ad hoc selection committee to conduct final interviews in late November and select the ideal candidate for the full Policy Board’s approval.

Members of the public are encouraged to participate in the linked community survey to provide feedback on the recruitment and selection of CCCE’s next CEO. The survey will remain open through October 27, 2022, and the results shared publicly.

Compiled Financial Statements 1
Compiled Budgetary Comparison Schedule 6
Budget Variance Commentary 9
Financial Dashboard 10
Investment Summary 11
Accounts Receivable Summary 12
Personnel Report 13
Table of Contents

TREASURER REPORT
Fiscal Year to Date
As of July 31, 2022
1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Central Coast Community Energy
Management is responsible for the accompanying financial statements of Central Coast Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of July 31, 2022, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.

Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.

Central Coast Community Energy’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.

Maher Accountancy
San Rafael, CA
August 25, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Current assets
Cash and cash equivalents 181,892,538 $
Accounts receivable, net of allowance 44,448,241
Accrued revenue 28,788,803
Loan receivable 292,002
Other receivables 463,069
Prepaid expenses 8,957,458
Deposits 2,942,750
Restricted cash 294,000
Total current assets 268,078,861
Noncurrent assets
Deposits 23,432
Loan receivable 1,707,998
Capital assets, net of depreciation 233,447
Total noncurrent assets 1,964,877
Total assets 270,043,738
Current liabilities
Accrued cost of electricity 43,904,894
Accounts payable 1,729,092
Other accrued liabilities 918,148
Customer rebate liabilities 293,255
User taxes and energy surcharges due to other governments 1,472,429 Total current liabilities 48,317,818
Noncurrent liabilities
Security deposits - energy suppliers 9,131,250
Total noncurrent liabilities 9,131,250
Total liabilities 57,449,068
Investment in capital assets 233,447
Restricted for security collateral 294,000
Unrestricted 212,067,223
Total net position 212,594,670 $

NET POSITION
As of July 31, 2022

STATEMENT OF NET POSITION

CENTRAL COAST COMMUNITY ENERGY
ASSETS

LIABILITIES
See accountants' compilation report. 2

OPERATING REVENUES
Electricity sales, net 316,464,829 $
Grant revenue 2,759,460
Liquidated damages 2,401,875
Total operating revenues 321,626,164

OPERATING EXPENSES
Cost of electricity 282,969,156
Contract services 7,167,426
Staff compensation 5,117,054
General and administration 4,190,086
Depreciation 74,552
Total operating expenses 299,518,274
Operating income (loss) 22,107,890

NONOPERATING REVENUES (EXPENSES)
Interest income 498,321
CHANGE IN NET POSITION 22,606,211
Net position at beginning of period 189,988,459
Net position at end of period 212,594,670 $
Ten Months Ended July 31, 2022

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report. 3

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 306,306,987 $
Receipts from grantor 2,759,460
Receipts from liquidated damages 2,401,875
Receipts from suppliers 10,796,990
Payments to suppliers for electricity (274,453,541)
Payments for other goods and services (13,357,556)
Payments for staff compensation (4,812,461)
Payments of taxes and energy surcharges to other governments (5,691,047) Net cash provided by operating activities 23,950,707

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments to acquire capital assets (1,113)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 498,321
Loan issued (2,000,000)
Net cash provided (used) by investing activities (1,501,679) Net change in cash and cash equivalents 22,447,915
Cash and cash equivalents at beginning of year 159,738,623 Cash and cash equivalents at end of period 182,186,538 $ Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) 181,892,538 $
Restricted cash 294,000
Cash and cash equivalents 182,186,538 $
Ten Months Ended July 31, 2022

STATEMENT OF CASH FLOWS

CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report. 4
Operating income (loss) 22,107,890 $
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation expense 74,552
Provision for uncollectible accounts 2,390,358
(Increase) decrease in:

Accounts receivable (9,462,301)
Accrued revenue (8,777,706)
Energy settlements receivable 7,856,108
Other receivables 456,260
Prepaid expenses (7,397,209)
Deposits (1,224,219)
Increase (decrease) in:

Accrued cost of electricity 15,255,470
Accounts payable 497,374
Other accrued liabilities 73,371
Customer rebate liabilities (13,036)
User taxes and energy surcharges due to other governments 13,795 Security deposits - energy suppliers 2,100,000
Net cash provided by operating activities 23,950,707 $

CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
Ten Months Ended July 31, 2022

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY OPERATING ACTIVITIES
See accountants' compilation report. 5
6 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Central Coast Community Energy
Management is responsible for the accompanying special purpose statement of Central Coast Community Energy (a California Joint Powers Authority) which comprise the budgetary comparison schedule for the period ended July 31, 2022, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of the Authority.

Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.

We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.

Maher Accountancy
San Rafael, CA
August 25, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 2021/22 YTD
Budget
2021/22 YTD
Actual
2021/22 YTD
Budget Variance
(Under) Over
2021/22 YTD
Actual / Budget %
2021/22 Annual
Budget
2021/22 Budget
Less Actual
2021/22 Budget
Remaining /
Budget %

REVENUES AND OTHER SOURCES
Electricity sales 285,081,000 $ 324,043,560 $ 38,962,560 $ 114% 359,103,000 $ 35,059,440 $ 10% Less bill credit - - - 0% (3,085,000) (3,085,000) 100%
Less uncollectible accounts (3,564,000) (4,819,271) (1,255,271) 135% (4,489,000) 330,271 -7% Revenue from damages - 2,401,875 2,401,875 n/a - (2,401,875) n/a Investment and miscellaneous income 430,000 498,321 68,321 116% 516,000 17,679 3% Total revenues and other sources 281,947,000 322,124,485 40,177,485 114% 352,045,000 29,920,515 8% EXPENDITURES AND OTHER USESCurrent Expenditures
Cost of energy 283,215,506 258,943,000 24,272,506 109% 326,335,000 43,119,494 13% Energy programs (incentives and grants) 11,003,000 2,689,779 (8,313,221) 24% 12,270,000 9,580,221 78% Data manager 3,062,797 3,144,000 (81,203) 97% 3,774,000 711,203 19% Utility service fees 1,585,000 1,446,870 (138,130) 91% 1,893,000 446,130 24% Staffing 7,703,000 5,117,054 (2,585,946) 66% 9,244,000 4,126,946 45% Professional services 1,192,000 978,792 (213,208) 82% 1,393,000 414,208 30% Legal services 866,000 897,489 31,489 104% 1,037,000 139,511 13% Marketing and customer enrollment 792,000 535,128 (256,872) 68% 943,000 407,872 43% Other general & administration 1,364,000 1,500,307 136,307 110% 1,625,000 124,693 8% Total current expenditures 286,592,000 299,443,722 12,851,722 104% 358,514,000 59,070,278 16% Other Uses Capital outlay 92,000 1,113 (90,887) 1% 114,000 112,887 99% Uninterruptible Power Supply expenditures 2,333,000 2,000,000 (333,000) 86% 2,800,000 800,000 29% Total other uses 2,425,000 2,001,113 (423,887) 83% 2,914,000 912,887 Total Expenditures and Other Uses 289,017,000 301,444,835 12,427,835 104% 361,428,000 59,983,165 17% Surplus (Deficit) $ (7,070,000) $ 20,679,650 $ 27,749,650 $ (9,383,000) $ (30,062,650) 320%

CENTRAL COAST COMMUNITY ENERGY

BUDGETARY COMPARISON SCHEDULE
Ten Months Ended July 31, 2022
See accountants' compilation report. 7
CCA Program Surplus/(Deficit)
per budgetary comparison schedule: 20,679,650 $
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:

Subtract depreciation expense (74,552)
Add back capital asset acquisitions 1,113
Add back loans issued 2,000,000
Change in Net Position 22,606,211 $

REVENUES, EXPENSES AND CHANGES IN NET POSITION

CENTRAL COAST COMMUNITY ENERGY

BUDGET RECONCILIATION TO STATEMENT OF
Ten Months Ended July 31, 2022
See accountants' compilation report. 8
Budget Item YTD Variance Comment
Electric Sales Revenue 13.7% Sales revenue includes revenues actually billed to customers as well as estimated customer usage during the reporting period that is not yet billed.

Cost of Energy 9.4% Variances in this category are typically due to (1) timing difference between projected and actual REC deliveries, (2) variance from actual to anticipated market prices, and (3) variance from actual to expected volume used by customers.

Staffing (33.6%) Staffing expenses are under budget due to the timing of new hires.

Professional Services (17.9%) This category includes accounting, IT, technical and other consultants.

Legal Costs 3.6% This category includes outside legal costs for regulatory and energy procurement needs.

Marketing and customer enrollment (32.4%) Variance is mostly due to the lower than anticipated costs of recent customer enrollments.

Data Management Services (2.6%) These fees non-discretionary and are charged on a per customer basis.

Utility Service Fees (8.7%) These are PG&E and SCE fees charged on a per customer basis.

Other General & Administrative 10.0% This category includes occupancy costs, industry membership dues, and other general and administrative costs.

Energy and Related Programs (75.6%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items

CENTRAL COAST COMMUNITY ENERGY
October 1, 2021 through July 31, 2022
9 $10.6
$5.0
Act
Bud
$36.0
$22.6 $28.3
-$10.0
$0.0
$10.0
$20.0
$30.0
$40.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
$319.2
$281.5
$354.6
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual (T48/T8) 410 407 442 418 376 406 391 415 441 445 Budget 428 421 432 431 379 406 395 421 425 448 478 454
0 100
200
300
400
500
600

CUSTOMERS

SALES VOLUME
445 GWh

STD MARGIN
$10.6M (23%)
Δ in NET ASSETS
$9.3M

REVENUE
$46.3M
Cumulative YTD Electricity Sales Cumulative YTD Direct Margin Fiscal Year Electricity Sales are $37.7M ahead of budget, Margin dollars are $13.4M above budget.

Data Definitions:

CUSTOMERS: From GridX invoice + Calpine.

REPORTED / SALES VOLUME: Best available estimate of actual meter volume. Currently based on GridX T+8 SQMD Report and T+48 when available.

REVENUE: Total Operating Revenue, net of uncollectible, (excludes Miscellaneous and Interest income).

NON-OP REV: Other uses, primarily Interest Income
ELECTRICITY SALES: Sales from electricity (net of uncollectible).

STD MARGIN: Electricity Sales less cost of energy (Forecasting & scheduling included in Cost of Energy to match budget) ACTUAL: Same as sales volume above
BUDGET: Volumes from FY21/22 budget
Monthly Sales Volume (GWh)
Financial Dashboard: July 2022
Margin %

CUSTOMERS
447,500
ACTIVE
July revenue of $46.3M accounts for 445
GWh in net retail consumption. This comes
in just 3Gwh below budgeted volume.

YTD Revenue is $37.7M ahead of budget,
and margin exceeds budget by $13.4M for
the year.
30%
45%
25%
35%
48%
17%
Res
Com
Ag
YTD Month
30%
46%
24%
37%
47%
17%
Res
Com
Ag
YTD Month
Revenue $46.3
C.O.E. $35.6
OpEx $1.4
Net Income $9.3 23.0%

14.3%
Act
Bud
Margin $
10 Return of Investments YTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Money Market and other Interest Earning Accounts $ 34,009 498,321 $ 33,104 $ 32,526 $ 31,581 $ 31,077 $ 38,817 $ 47,244 $ 62,490 $ 77,791 $ 109,682 $ Funds Invested - Average Balance $ 178,052,000 170,609,000 $ 172,266,000 $ 165,204,000 $ 167,506,000 $ 164,310,000 $ 159,591,000 $ 159,609,000 $ 151,997,000 $ 159,048,000 $ Average APY 0.24% 0.22% 0.23% 0.23% 0.22% 0.28% 0.36% 0.47% 0.61% 0.83%

CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2021 through July 31, 2022
11 Total 0-30 31-60 61-90 90-120 Over 120
Accounts Receivable, net 44,448,000 35,396,000 2,657,000 2,065,000 2,413,000 1,917,000 Period % 100% 80% 6% 5% 5% 4%
As of July 31, 2022
Accounts Receivable Aging Report

CENTRAL COAST COMMUNITY ENERGY
DAYS
12 Staff Report Item 7
TO: Central Coast Community Energy Operations Board of Directors FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Authorize CEO to Execute a Standard Services Agreement with Maher Accountancy for Accounting and Annual Audit Assistance Services with a Not to Exceed Amount of $259,000 (Action Item)
DATE: September 9, 2022
RECOMMENDATION:

This recommends that the Operations Board of Directors authorize the CEO to execute a Standard Services Agreement with Maher Accountancy (“Maher”) for accounting and audit assistance services from October 1, 2022 through September 30, 2023 in a Not To Exceed (“NTE”) amount of $259,000.

BACKGROUND:

In November 2017, Monterey Bay Community Power (“MBCP”) entered into an agreement with Maher to provide accounting services to MBCP which expired on September 30, 2018 (the “First Agreement”).

These services have subsequently been successively renewed by MBCP, now Central Coast Community Energy (“CCCE”). The current contract with Maher expires on September 30, 2022.

DISCUSSION/ANALYSIS:

CCCE, like other organizations its size, has a wide range of accounting needs – General Accounting and General Ledger maintenance, financial reporting, accounts payable, revenue validation and reporting, vendor and supplier disbursements, budget tracking, financial compliance, and regulatory filings etc.

Maher has built a Community Choice Aggregator (“CCA”) service offering based on QuickBooks and Bill.com. Maher also works with investor-owned utility (“IOU”) and Independent System Operator (“ISO”) data. The Maher offering automates tasks and includes the back-end staff necessary to effectively outsource all core accounting functions. Maher provides services comparable to what it provides CCCE to 10 other CCCAs and provides a smaller range of services to several others. It dedicates 9 staff to CCAs. By providing these services to CCAs, often at startup, and working with a wide range of them, Maher has built significant institutional capacity and knowledge of the CCA space.

CCCE has used Maher since its inception as MBCP. CCCE has a small accounting staff, consistent of an Accountant hired in 2021, a Senior Administrative Assistant dedicated half-time to Finance, and a newly hired (as of August 2022) experienced Senior Accountant. The Accountant and Senior Administrative Assistant focus primarily on contract administration, purchasing and travel request processing, invoice processing, payroll, select reconciliations, select tracking and related duties. At present, CCCE does not have the systems or staffing capacity to replace the Maher functions.

FISCAL IMPACT:

The proposed Standard Services Agreement with Maher for accounting and annual audit assistance services with a not to exceed balance of $259,000 will be paid from the FY22/23 budget.

CONCLUSION:

The Operations Board’s approval and authorization for the CEO to engage Maher for another year will ensure the continued operation of essential financial functions.

ATTACHMENT(S):

1. CCCE Standard Services Agreement with Maher Accountancy 9/12/2022 1 Contract Number: ______________

CENTRAL COAST COMMUNITY ENERGY

STANDARD SERVICES AGREEMENT
This Agreement is made by and between CENTRAL COAST COMMUNITY ENERGY (“CCCE”) and Maher Accountancy_ (hereinafter “CONTRACTOR”), a California Corporation with its principal place of business located at 1101 Fifth Ave, Ste 200 San Rafael, California. CCCE and CONTRACTOR may be individually referred to herein as “Party” or collectively as “Parties.” In consideration of the mutual covenants and conditions set forth in this Agreement, the Parties agree as follows:

1. GENERAL DESCRIPTION

1.1. CCCE hereby engages CONTRACTOR to perform, and CONTRACTOR hereby agrees to perform, the services described in Exhibit A in conformity with the terms of this Agreement. The goods and/or services are generally described as: Accounting Service.

2. PAYMENT PROVISIONS

2.1. CCCE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B, subject to the limitations set forth in this Agreement. The total amount payable by CCCE to CONTRACTOR under this Agreement shall not exceed the sum of $259,000.

3. TERM OF AGREEMENT

3.1. The term of this Agreement is from the date of execution until September 30, 2023, unless sooner terminated pursuant to the terms of this Agreement. This Agreement is of no force or effect until signed by both the CONTRACTOR and CCCE, with CCCE’s execution to be last in time. CONTRACTOR may not commence work under this Agreement before CCCE signs this Agreement.

3.2. CCCE reserves the right to cancel this Agreement, or any extension of this Agreement, without cause with thirty (30) days written notice, or with cause immediately.

4. SCOPE OF SERVICES AND ADDITIONAL PROVISIONS

4.1. The following attached exhibits are incorporated herein by reference and constitute a part of this Agreement:

4.1.1.Exhibit A: Scope of Services

4.1.2.Exhibit B: Payment Terms

4.1.3.Exhibit C: Procedures for Unauthorized Release of Covered Information 9/12/2022 2 Contract Number: ______________

5. PERFORMANCE STANDARDS

5.1. CONTRACTOR warrants that CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors performing services under this Agreement are specially trained, experienced, competent, and appropriately licensed to perform the work and deliver the services required under this Agreement and are not employees of CCCE or immediate family of an employee of CCCE.

5.2. CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors shall perform all work in a safe and skillful manner and in compliance with all applicable laws and regulations. All work performed under this Agreement that is required by law to be performed or supervised by licensed personnel shall be performed in accordance with such licensing requirements.

5.3. CONTRACTOR shall furnish, at its own expense, all materials, equipment, and personnel necessary to carry out the terms of this Agreement, except as otherwise specified in this Agreement. CONTRACTOR shall not use CCCE premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement.

6. PAYMENT CONDITIONS

6.1. Prices shall remain firm for the initial term of the Agreement and, thereafter, may be adjusted annually as provided herein. CCCE does not guarantee any minimum or maximum amount of dollars to be spent under this Agreement.

6.2. Negotiations for rate changes shall be commenced, by CONTRACTOR, a minimum of ninety days (90) prior to the expiration of the Agreement. Rate changes are not binding unless mutually agreed upon in writing by CCCE and the CONTRACTOR.

6.3. Invoices shall be submitted monthly on a form acceptable to CCCE and provide sufficient detail, as determined by CCCE, of services rendered for the invoiced period.

6.4. CCCE shall certify the invoice for payment in either the amount requested, or in such other amount as CCCE determines is due in conformity with this Agreement. Invoices shall be certified and paid within 45 days of submission to CCCE.

7. TERMINATION

7.1. During the term of this Agreement, CCCE may terminate the Agreement for any reason by giving written notice of termination to the CONTRACTOR at least thirty (30) days prior to the effective date of termination. Such notice shall set forth the effective date of termination. In the event of such termination, the amount payable under this Agreement shall be reduced in proportion to the services provided prior to the date of termination.

7.2. CCCE may cancel and terminate this Agreement for good cause effective immediately upon written notice to CONTRACTOR. “Good cause” includes the failure of CONTRACTOR to perform 9/12/2022 3 Contract Number: ______________
the required services at the time and in the manner provided under this Agreement. If CCCE terminates this Agreement for good cause, CCCE may be relieved of the payment of any consideration to CONTRACTOR, and CCCE may proceed with the work in any manner, which CCCE deems proper. The cost to CCCE shall be deducted from any sum due the CONTRACTOR under this Agreement.

8. INDEMNIFICATION

8.1. CONTRACTOR shall fully indemnify and hold CCCE, their officers, board members, employees, and agents, harmless from any claim, expense or cost, damage or liability imposed for claim, liability, loss, injury or damage occurring by reason of the negligent acts or omissions or willful misconduct of the CONTRACTOR, its officers, employees or agents, under or in connection with or arising out of the performance or non‐performance of any work, right, or obligation of such party under this AGREEMENT.

CONTRACTOR, nor any officer, board member or agent thereof, shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of CCCE, their officers, board members, employees, or agents, under or in connection with or arising out of the performance or non‐performance of any work, right, or obligation of such party under this AGREEMENT."

8.1.1.Notwithstanding any other provision of this Agreement, CCCE shall be entitled to participate fully in the defense of any claim or action.

8.1.2.The selection of counsel to satisfy the defense and hold harmless obligation as set forth in section 8.1 above, shall be subject to review and approval of CCCE.

9. INSURANCE REQUIREMENTS

9.1. Prior to commencement of this Agreement, the CONTRACTOR shall provide a “Certificate of Insurance” certifying that coverage as required herein has been obtained. Individual endorsements executed by the insurance carrier shall accompany the certificate. In addition, the CONTRACTOR upon request shall provide a certified copy of the policy or policies. This verification of coverage shall be sent to CCCE.

9.2. Without limiting CONTRACTOR’s duty to defend and indemnify, CONTRACTOR shall maintain in effect throughout the term of this Agreement a policy or policies of insurance with the following minimum limits of liability:

9.2.1.1. Commercial General Liability Insurance, including but not limited to premises and operations, including coverage for Bodily Injury and Property Damage, Personal Injury, Contractual Liability, Broad form Property Damage, Independent Contractors, Products and Completed Operations, and cross‐liability with a combined single limit for Bodily Injury and Property Damage of not less than $1,000,000 per occurrence, and $2,000,000 in the aggregate.
9/12/2022 4 Contract Number: ______________

9.2.1.2. Business Automobile Liability Insurance, covering all motor vehicles, including owned, leased, non‐owned, and hired vehicles, used in providing services under this Agreement, with a combined single limit for Bodily Injury and Property Damage of not less than $500,000 per occurrence.

9.2.1.3. Workers’ Compensation Insurance, if CONTRACTOR employs others in the performance of this Agreement, in accordance with California Labor Code section 3700 and with Employer’s Liability limits not less than $1,000,000 each person, $1,000,000 each accident and $1,000,000 each disease.

9.2.1.4. Professional Liability Insurance, if required for the professional services being provided, (e.g., those persons authorized by a license to engage in a business or profession regulated by the California Business and Professions Code), in the amount of not less than $1,000,000 per claim and $2,000,000 in the aggregate, to cover liability for malpractice or errors or omissions made in the course of rendering professional services. If professional liability insurance is written on a “claims‐made” basis rather than an occurrence basis, the CONTRACTOR shall, upon the expiration or earlier termination of this Agreement, obtain extended reporting coverage (“tail coverage”) with the same liability limits. Any such tail coverage shall continue for at least three years following the expiration or earlier termination of this Agreement.

9.3. Unless otherwise specified by this Agreement, all such insurance shall be written on an occurrence basis, or, if the policy is not written on an occurrence basis, such policy with the coverage required herein shall continue in effect for a period of three years following the date CONTRACTOR completes its performance of services under this Agreement.

9.4. Commercial general liability and automobile liability policies shall provide an endorsement naming CCCE, its Directors, Board members, officers, agents, and employees as Additional Insureds with respect to liability arising out of the CONTRACTOR’S work, including ongoing and completed operations, and shall further provide that such insurance is primary insurance to any insurance or self‐insurance maintained by CCCE and that the insurance of the Additional Insureds shall not be called upon to contribute to a loss covered by the CONTRACTOR’S insurance.

10. RECORD AND CONFIDENTIALITY

10.1. CONTRACTOR and its officers, employees, agents, and subcontractors shall comply with any and all federal, state, and local laws, which provide for the confidentiality of records and other information. CONTRACTOR shall not disclose any confidential records or other confidential information received from CCCE or prepared in connection with the performance of this Agreement, unless CCCE specifically permits CONTRACTOR to disclose such records or information. CONTRACTOR shall promptly transmit to CCCE any and all requests for disclosure of any such confidential records or information. CONTRACTOR shall not use any confidential information gained by CONTRACTOR in the performance of this Agreement except for the sole purpose of carrying out CONTRACTOR’s obligations under this Agreement. 9/12/2022 5 Contract Number: ______________

10.1.1. Confidential Information specifically includes Covered Information (as defined in Exhibit C), including Protected Personal Information(“PPI”) that identifies, relates to, describes, or is capable of being associated with, or could reasonably be linked, directly or indirectly, with a consumer, household, or customer account. All such Covered Information and PPI must fully be protected from disclosure as set forth in California Public Utility Commission Decision D.12‐08.045. In the event of an unauthorized release of Covered Information and PPI, CONTRACTOR shall comply with Exhibit C, Procedures for Unauthorized Release of Covered Information.

10.2. Upon expiration or termination of this Agreement, CONTRACTOR shall return to CCCE any CCCE records which CONTRACTOR used or received from CCCE to perform services under this Agreement.

10.3. CONTRACTOR shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and local rules and regulations related to services performed under this Agreement. CONTRACTOR shall maintain such records for a period of at least three years after receipt of final payment under this Agreement. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the three‐year period, then CONTRACTOR shall retain said records until such action is resolved.

10.4. CCCE shall have the right to examine, monitor and audit all records, documents, conditions, and activities of the CONTRACTOR and its subcontractors related to services provided under this Agreement. Pursuant to Government Code section 8546.7, if this Agreement involves the expenditure of public funds in excess of $10,000, the parties to this Agreement may be subject, at the request of CCCE or as part of any audit of CCCE, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.

10.5 CCCE shall have a royalty‐free and irrevocable license to use all original programs, writings, sound recordings, pictorial reproductions, drawings, and other works of similar nature produced in the course of or under this Agreement.

11. NON‐DISCRIMINATION

11.1. During the performance of this Agreement, CONTRACTOR, and its subcontractors, shall not unlawfully discriminate against any person because of race, religious creed, color, sex, national origin, ancestry, physical disability, mental disability, medical condition, marital status, age (over 40), or sexual orientation, either in CONTRACTOR’s employment practices or in the furnishing of services to recipients. CONTRACTOR shall ensure that the evaluation and treatment of its employees and applicants for employment and all persons receiving and requesting services are free of such discrimination. CONTRACTOR and any subcontractor shall, in the performance of this Agreement, fully comply with all federal, state, and local laws and regulations which prohibit discrimination. The provision of services primarily or exclusively to 9/12/2022 6 Contract Number: ______________
such target population as may be designated in this Agreement shall not be deemed to be prohibited discrimination.

12. INDEPENDENT CONTRACTOR

12.1. In the performance of work, duties, and obligations under this Agreement, CONTRACTOR is at all times acting and performing as an independent contractor and not as an employee of CCCE. No offer or obligation of permanent employment with CCCE and CONTRACTOR shall not become entitled by virtue of this Agreement to receive from CCCE any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. CONTRACTOR shall be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of CONTRACTOR’s performance of this Agreement. In connection therewith, CONTRACTOR shall defend, indemnify, and hold CCCE harmless from any and all liability which CCCE may incur because of CONTRACTOR’s failure to pay such taxes.

13. NOTICES

13.1. Notices required under this Agreement shall be delivered personally or by first‐class, postage pre‐paid mail to CCCE and CONTRACTOR’S contract administrators at the addresses listed below:

Central Coast Community Energy CONTRACTOR
Chief Financial Officer Michael Maher, Vice President, Treasurer 70 Garden Court, Suite 300 1101 Fifth Ave, Ste 200
Monterey, Ca 93940 San Rafael, CA 94901

14. MISCELLANEOUS PROVISIONS

14.1. Conflict of Interest. CONTRACTOR represents that it presently has no interest and agrees not to acquire any interest during the term of this Agreement, which would directly, or indirectly conflict in any manner or to any degree with the full and complete performance of the services required to be rendered under this Agreement.

14.2. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by CCCE and the CONTRACTOR.

14.3. Waiver. Any waiver of any terms and conditions of this Agreement must be in writing and signed by CCCE and the CONTRACTOR. A waiver of any of the terms and conditions of this Agreement shall not be construed as a waiver of any other terms or conditions in this Agreement.

14.4. Contractor. The term “CONTRACTOR” as used in this Agreement includes CONTRACTOR’s officers, agents, and employees acting on CONTRACTOR’s behalf in the performance of this Agreement.

14.5. Disputes. CONTRACTOR shall continue to perform under this Agreement during any dispute.
9/12/2022 7 Contract Number: ______________

14.6. Assignment and Subcontracting. The CONTRACTOR shall not assign, sell, or otherwise transfer its interest or obligations in this Agreement without the prior written consent of CCCE None of the services covered by this Agreement shall be subcontracted without the prior written approval of CCCE. Notwithstanding any such subcontract, CONTRACTOR shall continue to be liable for the performance of all requirements of this Agreement.

14.7. Successors and Assigns. This Agreement and the rights, privileges, duties, and obligations of CCCE and CONTRACTOR under this Agreement, to the extent assignable or delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, and heirs.

14.8. Compliance with Applicable Law. The parties shall comply with all applicable federal, state, and local laws and regulations in performing this Agreement.

14.9. Headings. The headings are for convenience only and shall not be used to interpret the terms of this Agreement.

14.10. Time is of the Essence. Time is of the essence in each and all of the provisions of this Agreement.

14.11. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California.

14.12. Non‐exclusive Agreement. This Agreement is non‐exclusive and both CCCE and CONTRACTOR expressly reserve the right to contract with other entities for the same or similar services.

14.13. Construction of Agreement. CCCE and CONTRACTOR agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement.

14.14. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.

14.15. Authority. Any individual executing this Agreement on behalf of CCCE or the CONTRACTOR represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement.

14.16. Integration. This Agreement, including the exhibits, represent the entire Agreement between CCCE and the CONTRACTOR with respect to the subject matter of this Agreement and shall supersede all prior negotiations, representations, or agreements, either written or oral, between CCCE and the CONTRACTOR as of the effective date of this Agreement, which is the date that CCCE signs the Agreement.

9/12/2022 9 Contract Number: ______________
Exhibit A: Scope of Services
Exhibit A: Scope of Services
Monthly Financial Operational Assistance

1. Assist with financial covenants with energy providers and lenders.

2. Assist in the development and monitoring of internal controls over financial transactions.

3. Monitor operating budget in collaboration with management and technical consultants.

4. Maintain the general ledger by:
a. Posting aggregate customer billings, accrued revenue, cash receipts, accounts payable, cash disbursements, payroll, accrued expenses, etc. b. Prepare or maintain the following monthly analysis regarding general ledger account balances:
i. Reconciliation to statements from Authority’s financial institution for cash activity and balances;
ii. Reconcile customer data manager reports of customer activity to accounts receivable aging;
iii. Estimate user fees earned but not billed as of the end of the reporting period;
iv. Prepare and maintain schedule of depreciation of capital assets; v. Prepare schedule of aged accounts payable;
vi. Prepare and maintain schedules of details regarding all remaining balance sheet accounts.

5. Manage disbursements to vendors: CONTRACTOR utilizes a cloud‐based accounts payable and document management system to provide documentation of management review, proper segregation of duties, and access to source data. CONTRACTOR data entry and review ensures that required authorization is documented and that account coding is correct. CCCE staff then authorizes the release of payment in order to provide an additional safeguard.

6. Assist management with compliance with fiscal provisions of vendor contracts.

7. Monitor expenditure budget compliance. CONTRACTOR monitors budget available and will make timely recommendations for any necessary budget amendments.

8. Provide periodic and year‐to‐date accrual basis financial statements with comparison to projections.

9. Provide modified accrual basis financial statement with comparison to budget.

10. Prepare and file annual information returns such as form 1099/1096’s.

11. Assist the treasury function

12. Provide services to assist management with financial reports required by applicable laws and regulations.

13. File various compliance reports for state and local agencies, such as user taxes, energy surcharges, and state controller reports.

14. Provide access to professional service provider contract portal. Maintenance of data within the portal will be a shared responsibility between CCCE and Contractor.

15. Provide access to a customer budget portal that shows revenues and expenditures by CCCE division, in alignment with CCCE’s Chart of Accounts. The portal will reflect the most up to date information available to the CONTRACTOR
9/12/2022 10 Contract Number: ______________
Scope of Services (Continued)

16. Develop an online form for business users to request purchase approval, submitting necessary documentation (Quotes, W‐9), justification and budget coding. Implement an approval chain and related notification system which varies based threshold. Provide insight into relevant budget availability at time of approval, and generate Purchase Order form for vendor after completion of approval steps.

Payroll Assistance Services

1. CCCE will provide summarized employee master file change information.

2. CCCE will ensure timecards, as necessary, are accurately completed by employees.

3. CONTRACTOR will communicate with ADP (or successor) and other taxing authorities, as needed.

4. CONTRACTOR will not have direct contact with CCCE employees other than the CCCE Finance and Human Resources personnel designated by CCCE’s Chief Financial Officer

5. CONTRACTOR is responsible for supporting CCCE personnel in payroll processing and administration, including but not limited to data validation.

8. CONTRACTOR will communicate payroll information to retirement plan administrator, if applicable.

Annual Audit:

1. Assist with the selection of independent auditor.

2. Coordinate data flow from CCCE accounting records to independent auditor.

3. Prepare annual financial statements with note disclosures and Management Discussion and Analysis.

9/12/2022 11 Contract Number: ______________
Exhibit B: Payment Terms
Authority shall compensate CONTRACTOR for professional services in accordance with the terms and conditions of this Agreement based on the rates and compensation schedule set forth below.

Compensation shall be calculated based on the not to exceed amounts set forth below.

The compensation to be paid to CONTRACTOR under this Agreement for all services described in Exhibit “A” and reimbursable expenses shall not exceed a total of $259,000, as set forth below. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to Authority unless previously approved in writing by Authority.

Monthly Accounting Services $241,500 Fixed fee of $20,125 per month Annual Audit Assistance (one‐time per year) $17,500 One‐Time

Total $259,000
Monthly Invoicing
CONTRACTOR shall submit monthly invoices to the Authority describing the services performed and the applicable charges. Payment will be made in accordance with Section 6 of this Agreement.

Reimbursable Expenses
Administrative, overhead,secretarial time or overtime, word processing, photocopying, in house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. Travel expenses must be authorized in advance in writing by CCCE and shall only be reimbursed to the extent consistent with CCCE’s travel policy. Cloud based payable platform (bill.com) fees will be paid for directly by CCCE. 9/12/2022 12 Contract Number: ______________
Exhibit C: Procedures for Unauthorized Release of Covered Information SCOPE
CONTRACTOR hereby agrees to adhere to these Procedures for detecting and reporting the unauthorized release of Covered Information, including Protected Personal Information (“PPI”).

These Procedures apply to the following unauthorized release activities:

1. Unauthorized access

2. Unauthorized destruction

3. Unauthorized use

4. Unauthorized modification

5. Disclosure to third parties for Secondary Purposes (see below)

DEFINITIONS
Covered Entity – (1) any Community Choice Aggregator or Electrical Service Provider (when providing service to residential or small commercial customers), or any third party that provides services to a Community Choice Aggregator or Electrical Service Provider (when providing service to residential or small commercial customers) under contract, (2) any third party who accesses, collects, stores, uses or discloses covered information pursuant to an order of the Commission, unless specifically exempted, who obtains this information from an electrical corporation, a Community Choice Aggregator or an Electrical Service Provider (when providing service to residential or small commercial customers), or (3) any third party, when authorized by the customer, that accesses, collects, stores, uses, or discloses covered information relating to 11 or more customers who obtains this information from an electrical corporation, a Community Choice Aggregator or an Electrical Service Provider (when providing service to residential or small commercial customers).

Covered Information ‐‐ any usage information obtained through the use of the capabilities of Advanced Metering Infrastructure when associated with any information that can reasonably be used to identify an individual, family, household, residence, or non‐residential customer, except that covered information does not include usage information from which identifying information has been removed such that an individual, family, household or residence, or non‐residential customer cannot reasonably be identified or re‐identified. Covered information, however, does not include information provided to the California Public Utilities Commission (the “Commission”) pursuant to its oversight responsibilities.

Primary Purposes – The “primary purposes” for the collection, storage, use, or disclosure of covered information, as outlined in Rule 1(c) of Attachment B, are to:

1. Provide or bill for electrical power or gas,

2. Provide for system, grid, or operational needs,

3. Provide services as required by state or federal law or as specifically authorized by an order of the Commission, or

4. Plan, implement, or evaluate demand response, energy management, or energy efficiency programs under contract with a Community Choice Aggregator or and Electrical Service Provider (when providing service to residential or small commercial customers), under contract with the 9/12/2022 13 Contract Number: ______________
Commission, or as part of a Commission authorized program conducted by a governmental entity under the supervision of the Commission.

Secondary Purposes – “Secondary purpose” means any purpose that is not a primary purpose.

Non‐Covered Entity – “Non‐Covered Entity” means any entity not defined as a Covered Entity.

Responsible Parties ‐‐ CCCE, CONTRACTOR, and any staff, employees, or sub CONTRACTORs contracted by CCCE or CONTRACTOR.

PROCEDURE
Detecting and Reporting of Unauthorized Releases

1. All Responsible Parties are required to protect Covered Information from unauthorized release activities as set forth above.

2. Any request by any non‐Covered Entities, for access to Covered Information must be reviewed and approved by an CCCE manager level employee to ensure no unauthorized or inadvertent release of Covered Information.

3. All authorized releases of Covered Information to Non‐Covered Entities shall be logged and reported to CCCE on a quarterly basis.

4. Any discovery of any unauthorized release of Covered Information must be reported to CCCE within one week of detection.

Unauthorized Release Handling Procedure

1. The discovering party after detecting, or discovery of, the unauthorized release of Covered Information must contact CCCE’s Dir. of Finance and Administration (or another executive manager) immediately.

2. CONTRACTOR will quantify and validate the type and extent of unauthorized release and report that information to CCCE’s Dir. of Finance and Administration in writing with sufficient detail for CCCE to determine the extent and impact of the unauthorized release.

3. CONTRACTOR shall prepare a written annual report of all discoveries of unauthorized releases of Covered Information.

Review and Training

1. At least annually, CONTRACTOR will review these Procedures with its staff, employees, or subcontractors.

2. Any proposed changes to these Procedures shall be provided in writing to CCCE’s Dir. of Finance and Administration for their consideration.

Staff Report Item 8
TO: CCCE Operations Board of Directors
FROM: Seth Capron, Community Advisory Council Chair
SUBJECT: Community Advisory Council's Report (Discussion Item) DATE: September 21, 2022
Community Advisory Council Report to Policy Board on the August 3, 2022 Meeting CAC Annual Workplan – Action Item
As Chair of the CAC, I met several times with COO Robert Shaw and CCCE consultant Toula Hubbard of Monarch Solutions to provide input on the Community Advisory Council’s FY 22/23 Workplan. The concept of an annual workplan for the CAC came out of the work of the ad hoc committee set up by the Policy Board. The workplan for next year as presented to the CAC sets out the following items to guide that CAC’s work:
 Provide feedback on staff proposals and recommendations. This will involve reviewing staff proposals before they go before the Operations and Policy Boards, as has taken place in the past.
 Engage in community outreach and communication to further the work of CCCE.  Support the Boards and staff in legislative advocacy.  Provide feedback on CCCE’s Energy Program Portfolio and ongoing Energy Program evaluation.  Engage in CCCE’s development of a strategic Regional Transportation Electrification Action Plan through a series of work study sessions, with outside speakers on a variety of related topics.

The CAC voted to recommend Board approval of the Workplan as presented by staff.

FY 21/22 CCCE Energy Programs and Member Agency Services Report Staff provided a detailed report on the status of current CCCE Energy Programs. The report showcases the significant successes in implementing our substantial portfolio of programs. Highlights are the high levels of customer uptake on available incentives and an increase in the percentage of funds going to lower income customers.

Staff also presented a report on programs being implemented under Member Agency Services. The increasing collaboration between CCCE staff and jurisdictional climate action programs is an exciting development that has the potential to leverage the programs of all who are involved.

FY 22/23 Energy Program Portfolio – Action Item
Staff provided their proposal for energy programs for FY 22/23. The suite of programs is largely unchanged from this year’s portfolio, with the elimination of the Community Education and Workforce Grant Program and the ongoing bike racking of the behind the meter Battery Storage Pilot Program. The CAC recognized the challenge with program expansion in the current volatile energy market, and the opportunities to build on past program experience. The CAC voted to recommend Board approval of the proposed Energy Programs Portfolio.

FY 22/23 Operating Budget – Action Item
Preparation of the complete annual budget package was not complete at the time of the CAC meeting.

Staff provided a report describing proposed changes budgeting practices and estimated overall budget numbers:
 Setting the budget for energy program funding based on projected cost instead of % of total revenues
 Moving all non-budgeted program funds into one general reserve fund, no longer maintaining separate program and rate stabilization reserve balances  Projecting static funding levels for program spending through calendar year 2025, with gross revenues increasing substantially
Concern was expressed about the potential for the proposed new budget practices to reduce future program spending, and about the flat level of spending projected over the next three years; while understanding that outyear budget forecasts are just that: forecasts. The CAC was supportive of the proposed new budget practices and voted to recommend Board approval of the budget.

Staff Report Item 9
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: CEO's Report (Discussion Item)
DATE: September 21, 2022

STAFF UPDATE
Alicia Hicks- Director of Human Resources and Administrative Services- Alicia has over twenty-three years of human resources management and leadership experience in municipalities and local government. She is an expert in all facets of human resources. She has a solid background in employee relations, policy development, performance management, benefits administration, disability management, classification and compensation, recruitment, and risk management programs. She has been a trusted advisor to various public agencies throughout southern and northern California as a consultant for the past year.

Cynthia Satterlee- Executive Assistant- Cynthia brings over ten years of extensive experience coordinating complex, confidential departmental operations while supporting high level executives.

Prior to joining CCCE Ms. Satterlee provided executive support at CSUMB.

Gina Urmatan- Senior Accountant- Gina has over twenty years of experience in accounting. She brings forth a proven track record in managing audits and offering meticulous oversight of general ledger management. Ms. Urmatan is goal orientated individual known for having a friendly personality, determination, and professionalism.

Judi Young- Senior Customer Account Manager – Judi joined CCCE on September 6, 2022, she brings a wealth of knowledge in customer accounts management. Previously to joining CCCE, Ms. Young was collaborating with senior leadership in developing advance SWCA’s sustainability strategies and initiatives.

Sophia Schwirzke- Customer Accounts Manager- Sophia joined Central Coast Community Energy as a customer accounts manager last month. Before joining the CCCE team, she served as a district representative for Senate Majority Leader Mike McGuire and held internships with Senators Bill Monning and Bill Dodd.

LABOR DAY HEAT WAVE IMPACTS
CCCE worked closely with a broad team convened by the Governor’s Office and CAISO to respond to a record-setting heat wave that strained the state’s power supply and threated rotating outages. The California grid dealt with record, or near-record, peak demand on September 6-9.

CCCE communicated the urgent need to conserve while also working with Member Agencies and large customers to identify and commit additional generation capacity to help meet the ramping demand in the 4 p.m. to 9 p.m. hours when solar generation is coming offline. The Governor’s unprecedented use of the Amber Alert system to notify customers dramatically increased customer awareness and response. Ultimately the efforts avoided rolling outages that would have otherwise been required.

Crisis presents opportunities for learning and CCCE will review its emergency response tools and practices to strengthen our ability to communicate and drive customer behavior during future events.

Coordination with partners beyond state agencies and our member agency leadership, such as with County Offices of Emergency Services, will be evaluated for future protocols.

AB 846 – DIABLO CANYON
On the last day of the legislative session, AB 846 (Cunningham) passed the legislature, greenlighting a $1.4 billion forgivable loan and a package of shareholder incentives to PG&E to facilitate extending the operating life of Diablo Canyon Nuclear Power Plant beyond its scheduled 2024-2025 retirement date.

By itself, AB 846 does not guarantee an extension and is only the beginning of a lengthy evaluation process that will play out before the CPUC and federal regulatory authorities.

If PG&E is granted the extension, all CPUC jurisdictional ratepayers will see a new non-bypassable charge on their electricity bill starting in 2025 (with PG&E territory customers’ paying more). The charge covers the cost of running the Diablo Canyon plant past its retirement date.

The plant’s operation is not anticipated to impact CCCE operations or renewable energy goals.

INFLATION REDUCTION ACT
In mid-August President Biden signed the Inflation Reduction Act of 2022, the most aggressive federal action on climate change in American history. The Act, which invests $370 billion toward climate and clean energy investments, provides significant benefits and incentives both to CCCE and our customers.

Expanding the Investment Tax Credit to cover standalone energy storage resources and the ability for public entities, such as CCCE, to be direct recipients of the tax credit represent a significant operational opportunity for CCCE’s procurement efforts. The new staggered investment tax credit structure will boost compliance with wage and apprenticeship requirements and provide bonuses for domestic production and projects located in disadvantaged communities.

The Act also spurs investment in fuel shifting through electric vehicle incentives and promotion of technologies like heat pumps and electric appliances. CCCE is evaluating the impact on CCCE programs and identifying opportunities for CCCE, Member Agencies, and customers.

DATA MANAGER / CALL CENTER TRANSITION
CCCE is now in “go live” for the transition of its Data Manager function for the PG&E service area; this function is central to billing, accounts receivable, data, and call center services. GridX had provided these functions for its PG&E service area since CCCE’s inception. Earlier this year, CCCE chose to consolidate services under Calpine Energy Services, which provides Data Manager services for CCCE’s SCE service area. Billing, bill validation, reporting, data, and call center service for over 400,000 PG&E customer meters have begun transitioning in September. Staff and Calpine Energy Services have been working on this initiative for six months.

ATTACHMENT(S):

1. Regulatory & Legislative Impact Update

2. Update on FY 21/22 CCCE Energy Programs

3. Update on CCCE Member Agency Services

4. CCCE Contracts < $100k
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
DATE: September 21, 2022
RE: Regulatory & Legislative Impact Update
Regulatory
Power Charge Indifference Adjustment (“PCIA”; Rulemaking.17-06-026) Issue
In April 2022 the CPUC rejected CCCE’s Application for Rehearing of Decision 21-05-030. D.21-05-030 is a PCIA reform Decision that rejected the idea of allocating to CCAs the Resource Adequacy value of resources CCA customers already pay for through the PCIA. On May 11th, CCCE and San José Clean Energy filed a Petition for Writ of Review with the California 6th District Court of Appeal, seeking judicial review of the CPUC’s decision.1
Impacts
As Resource Adequacy has become an increasingly constrained market and prices have increased over the past several years, the lost value to CCCE customers of not receiving the RA credit for resources they pay for through the PCIA has increased.

Status
On August 15th, the CPUC rejected the Petition for Writ of Review. The Commission claimed that they followed all lawful procedures and were not presented with grounds that would justify review of the Commission’s decision. CCCE will reply to the Commission and then wait for the response of the Court determining whether the suit may proceed further.

Integrated Resource Planning (IRP; Rulemaking.20-05-003) Issue
Integrated Resource Planning (IRP) is the CPUC’s greenhouse gas (GHG) reduction planning process.

Every two years, CCAs, investor-owned utilities (IOUs) and Direct Access providers must submit Integrated Resource Plans documenting the resources they plan to procure through 2035 and the estimated attendant GHG emissions. The CPUC aggregates the plans to determine whether the electricity sector is on track to hit its portion of California’s 2030 GHG reduction goals while maintaining a reliable grid. The most recent IRPs were due in September 2020, and that IRP cycle concluded in February 2022 when CCCE’s plan was certified along with many others. The next IRP is due on November 1, 2022.
1 Court docket available at: California Courts - Appellate Court Case Information Impacts
The CPUC does not have direct jurisdiction over CCA procurement the way it does for IOUs. However, the CPUC has used its responsibility for achieving GHG reductions to justify ordering all load-serving entities participating in the IRP process (including CCAs) to procure extra resources if it finds the predicted system-wide trajectory lacking in GHG reductions and/or grid reliability. The first IRP cycle in 2017-2018 resulted in a CPUC mandate for 3,300 MW of extra procurement, with an additional 11,500 MW ordered in June 2021 to protect mid-term (2023-2026) grid reliability. CCCE’s assigned slice of those mandates was 57.4 MW and 291 MW respectively, and future IRP cycles could bring additional procurement mandates.

Status
Staff have spent the summer working with Ascend Analytics to model a series of resource portfolios in preparation for the next IRP submission on November 1, 2022. Staff will bring the finished IRP to the Operations Board for approval at the October meeting before submitting it to the CPUC and posting the materials (a narrative report and a series of spreadsheets detailing the final resource portfolios) to CCCE’s website for public access.

Additionally, on September 8th the CPUC issued a Ruling proposing changes to the Mid-Term Reliability (MTR) mandate that could have significant impacts on CCCE procurement. The Ruling acknowledges the difficulty of meeting the current MTR requirements caused by both global supply chain conditions and the original structure of the MTR itself. CPUC staff then propose two potential changes to the MTR requirements:
1) Expanding the pool of resources eligible to count towards MTR compliance to include any resource that has come online since January 1, 2020, and 2) Increasing the 2025 procurement requirement commensurate with the amount of capacity that the first change makes newly eligible, functionally equating to a partial extension of the deadlines for 2023 and 2024 procurement out to 2025.

This is the first structural acknowledgment from the Commission of 1) the delays the market and supply chain disruptions of the past few years have caused for new resource development, and 2) the perverse incentive against proactive new resource development created by the original MTR structure, which penalizes the load-serving entities who have most proactively pursued new clean resources by including their resources in the “baseline” inventory that does not count toward MTR compliance. CCCE staff have held multiple meetings with CPUC staff and state legislators this year to discuss both issues.

The changes proposed in the Ruling are still several steps from becoming official Commission policy.

There will be opportunities for stakeholder input on the proposals this fall before a Proposed Decision is issued. CCCE will work further with Commission staff and other stakeholders to support a version of the proposals.

Provider of Last Resort (POLR; Rulemaking.21-03-011)
Issue
The Provider of Last Resort is the entity responsible for taking over a load-serving entity’s (LSE’s) customers if that LSE fails and can no longer provide electric service. Historically in California, the investor-owned utilities (IOUs) have served as the POLRs in their respective service areas, tasked with taking back customers if a CCA or direct access provider fails. Phase 1 of this proceeding focuses on fleshing out and formalizing the IOUs’ responsibilities as POLR. Phase 2 will create a process for allowing LSEs other than the IOUs (such as CCAs) to serve as POLR in their service areas. The proceeding is the implementation vehicle for SB 520 (Hertzberg, 2019) and has become especially urgent since CCA Western Community Energy’s bankruptcy in June 2021.

The three biggest issues on the table for CCAs are 1) the extent of responsibility the POLR should have for preemptively procuring resources before any customers are returned to POLR service, 2) how the Financial Security Requirement (FSR) should be calculated, and 3) what the POLR’s relationship with compliance requirements such as the Renewable Portfolio Standard and Resource Adequacy programs should be.

Impacts
In addition to the rules for POLR, Phase 1 of the proceeding will examine a framework for recovery of POLR costs and consider whether the Financial Security Requirement (FSR) and re-entry fees need to be modified and/or changes made to the CCA registration and de-registration processes. The FSR is a fee that each CCA must pay upfront to the IOU(s) in its service area to cover the costs of transferring its customers back to the IOU in the event of the CCA’s failure. The re-examination of the FSR could result in a significant increase in the amount of FSR that CCAs are required to post.

Status
There have been no major updates in this proceeding since the Commission rejected Southern California Edison’s request to raise CCCE’s FSR from $147,000 to $2.9 million in late June. CCCE has continued to help develop FSR reform proposals that will reduce both the volatility in the amounts asked for and allow CCAs that have demonstrated financial health through obtaining an investment-grade credit rating to post smaller FSR amounts overall. Some of these proposals may be seen in CalCCA’s July comments and August reply comments in this proceeding. Stakeholders are now waiting for an Energy Division staff proposal, and a Decision on the revised FSR methodology is expected in early 2023.

Resource Adequacy Reform (R.21-10-002)
Issue
Resource Adequacy (RA) is the primary vehicle by which the CPUC carries out grid reliability planning to prevent blackouts and ensure continuous electric service in California. It currently requires all LSEs to demonstrate on an annual and monthly basis that they have purchased enough generating capacity to cover their share of the peak demand. In addition to ongoing administration of the RA program, this proceeding is carrying out structural reform to make the RA program more effective at maintaining reliability of service as the grid moves away from fossil fuels to a renewables and storage-based fleet.

Decision 21-07-014 in July 2021 selected a broad structure called “slice-of-day” for the reformed RA process while acknowledging that many details still needed to be fleshed out. To do this, the Decision ordered a six-month series of stakeholder workshops to try to build consensus around a more detailed version of the slice-of-day model. These culminated in Decision 22-06-050 in June 2022 selecting a version of slice-of-day developed by Southern California Edison as the next iteration of the RA program, followed by a second series of workshops in July – October 2022 to refine further implementation details. The third and final Decision before the slice-of-day model launches for test-year use in 2023 is expected in Q1 2023.

Impacts
RA procurement has taken up an increasing amount of budget and CCCE staff time in recent years, and the type of RA products CCAs must buy is a direct product of the RA program structure. Spiking RA prices combined with new noncompliance penalties imposed by the CPUC suggest potential for further cost increases in the future, though this outcome will depend on the outcome of the reform process.

Status
As the slice-of-day workshops continue, CCCE and other load-serving entities are also working through the significant uncertainty introduced into RA procurement by the introduction of a Central Procurement Entity (CPE) for Local RA. In 2020 the CPUC created the CPE function and awarded it to PG&E and Southern California Edison (SCE) in their respective service areas in an attempt to address increased Local RA market prices. The CPEs (PG&E and SCE) were charged with procuring Local RA on behalf of all load-serving entities in their service areas and recovering the cost of the procurement from ratepayers through the existing Cost Allocation Mechanism (CAM) charge.

The first round of CPE procurement has encountered significant obstacles requiring iteration on the process, and ultimately PG&E was only able to procure 74% of the Local RA it was tasked with finding.

This outcome has highlighted ambiguities around how the CPE function interacts with the System RA requirements that all LSEs are still individually responsible for procuring, creating uncertainty around the amount of System RA CCCE and other CCAs must procure before the Year-Ahead RA compliance deadline on October 31, 2022. CCCE staff have spoken with Commission leadership about this matter and are pursuing all avenues in order to clarify this issue in a timely manner.

California Energy Commission’s Updated Load Management Standards (LMS) Issue
Apart from the CPUC, the California Energy Commission (CEC) is the other state regulatory agency involved in energy policy and planning. CA’s Public Resources Code authorizes the CEC to adopt rules and regulations to reduce uneconomic and wasteful consumption of energy. Originally established in 1979, the Load Management Standards (LMS) have resulted in industrial time-of-use rates, commercial audits, and residential load control programs.

That CEC is now undertaking its latest round of updates to the LMS regulations. The draft revisions to the LMS regulations would impose ratemaking requirements on all “utilities” – IOUs, POUs, and CCAs. In order to facilitate demand response and load flexibility, utilities must develop hourly marginal cost rates based on California Independent System Operator (CAISO) marginal cost prices. These rates would be optional for customers to adopt, but development of this option for each customer class would be mandatory.

Impacts
Hourly marginal cost rates are complex to design and implement. Research thus far suggests that the current IOU data management framework will not support implementation of CCA real-time rates. The proposed LMS updates thus require development of rate options the CCAs may not be technically able to carry out.

The proposed LMS updates also pose a substantive threat to CCAs’ right to set their own rates. The revised regulations require each utility to develop a rate that complies with its requirements and present the rate to the ratemaking authority (e.g., CCA governing boards). The utilities must provide copies of their proposed rate for “informational purposes” to the CEC. Despite the seeming deference to the local ratemaking authority, failure to comply with the regulations can result in the Executive Director of the CEC filing a Complaint at the CEC or seeking injunctive relief.

Status
CCCE has supported CalCCA in pushing back on the proposed regulations in meetings with CEC staff and three rounds of comments. CalCCA’s opposition has been on both jurisdictional and practical grounds, as implementation of real-time rates would not be feasible for CCAs under the existing data access systems maintained by the IOUs. The CEC has not changed the draft regulations to address CCA concerns.

The draft regulations were originally set to be voted on and likely approved by the CEC Commissioners on August 10th. However, on July 29th the CEC withdrew them from the agenda and did not give a further schedule for their advancement. Staff are prepared to reengage if they are taken up again.

Legislative
The legislative session ended on August 31, 2022. In addition to the energy-related budget items passed before the summer recess, most notably $1.2 billion for a second round of pandemic-related utility debt relief, the last month of the session brough new clean energy goals and the potential extension of the operating life of the Diablo Canyon nuclear power plant.

At the federal level the Inflation Reduction Act (IRA) was signed into law on August 16th. The most important component of the IRA for CCCE is the extension of the Investment Tax Credit to standalone energy storage projects for the first time. This will facilitate CCCE’s planned investments in storage and support the large amount of storage needed to reach California’s GHG reduction goals.

New State Climate and Clean Energy Goals
The legislature passed two laws this session that accelerated California’s GHG reduction and clean energy targets.

SB 1020 (Laird) set new requirements that renewable and carbon-free sources supply 90% of retail electricity sales to California end users by 2035 and 95% by 2040. These new targets are not expected to change CCCE procurement policy given that CCCE is committed to a 100% RPS by 2030.

AB 1279 (Muratsuchi), the California Climate Crisis Act, codified into law a requirement that California must achieve economy-wide carbon neutrality as soon as possible and no later than 2045.

This goal was introduced in 2018 in Governor Brown’s Executive Order B-55-18 but now carries the force of law. AB 1279 additionally limits anthropogenic GHG emissions to at least 85% below 1990 levels by 2045. The California Air Resources Board will determine how this new goal will affect GHG reduction requirements for the electricity sector, which trickle down to CCCE as requirements in the Integrated Resource Planning program at the CPUC.

Potential Extension of the Diablo Canyon Nuclear Power Plant’s Operating Life SB 846 passed the legislature on the last night of the session, greenlighting a $1.4 Billion forgivable loan and a package of shareholder incentives to PG&E from CA taxpayers and ratepayers to facilitate extending the operating life of the Diablo Canyon Nuclear Power Plant (DCNPP). SB 846 does not extend the operation of DCNPP by itself but does provide PG&E funding to secure operating permission from federal regulators through 2030, five years past its currently scheduled retirement date of 2024-2025. If PG&E is granted the extension, all California ratepayers will see a new non-bypassable charge on their electricity bill starting in 2025 associated with the cost of running the Diablo Canyon plant past its retirement date. The major financial components of SB 846 are as follows:

Taxpayer Funding: A $1.4 Billion forgivable loan to PG&E through the Department of Water Resources for pre-extension costs.

Funding From All CPUC-Jurisdictional Ratepayers (including CCCE customers): A new Non-Bypassable Charge (NBC) starting in 2025 that funds:
 $6.50/MWh volumetric incentive to PG&E in extended operating years (2025-2030)  $50 Million annual incentive to PG&E in extended operating years  $12.5 Million per month up to $300 Million Liquidated Damages Fund (for replacement power for unplanned outages), which is reimbursed to ratepayers upon closure  Unenumerated operating costs.

Funding From PG&E Territory Ratepayers (including CCCE Customers): funded through the new NBC:
 An additional $6.50/MWh incentive in extended operating years (2025-2030) Potential PG&E Territory Ratepayer (including CCCE Customers) Reimbursements:
 Revenues in excess of costs and expenses during extension. Additional revenues after PG&E customer reimbursement, if any, are applied to the $1.4 Billion loan balance.

TO: Operations Board
FROM: Tom Habashi, Chief Executive Officer
DATE: September 21, 2022
RE: Update on FY 21/22 CCCE Energy Programs
Provided in this memorandum is an update on recent energy programs implementation activities.

Electrify Your Ride Program
On November 9, 2021, CCCE staff launched the second iteration of the Electrify Your Ride Program.

Building off of last year’s program, the Electrify Your Ride Program provides rebates to CCCE customers who purchase or lease an electric vehicle (EV). This program also incorporates rebates for Level 2 EV Chargers, as well as related home electrical upgrades - such as panel upgrades and wiring – to support “EV Readiness”. A new offering of the Electrify Your Ride Program includes rebates for electric bicycles (E-bikes) for residents.

Residential, commercial/agricultural, and public agency customers are welcome to apply. Higher incentive amounts are available through this program for income-qualified customers to promote greater adoption of transportation electrification in disadvantaged and low-income communities. In FY 21/22, CCCE budgeted a total of $3.1 million with $2.85 million allocated for customer incentives.

In August 2022, staff initiated a waitlist for the EYR Program, as the number of funding requests from pending applications was equal to the remaining budget. On September 9, 2022, staff closed the EYR program. Customers who submitted eligible applications during the waitlist period may still receive funding in FY 22/23. Staff is in the process of completing the final review and approval of submitted applications.

Figure 1 (above): Shows Electrify Your Ride funds distributed by County in FY 21/22.

Figure 2 (above): Shows Electrify Your Ride Program funds distributed by Measure type in FY 21/22.

Figure 3 (above): Shows a breakdown of funds distributed to income qualified applicants. Tier 1 = 201 - 400% FPL; Tier 2 = <200% FPL; N/A = Non-Income Qualified applicants
Figure 4 (above): Shows estiamted annual GHG emissions reductions (MTCO2e) by County resulting from reduced vehicle emissions under the Electrify Your Ride Program in FY 21/22.

Electric Vehicle Supply Equipment Technical Assistance
On May 15, 2022, the Operation Board of Directors authorized CCCE staffs’ recommendation to enter in a two-year agreement with Frontier Energy Inc (“Frontier”) in an amount not to exceed $240,000.

Frontier will support CCCE’s existing EV infrastructure programs by identifying viable project sites at multifamily and public-facing properties, providing outreach and education to property owners, offering free site assessments for EVSE projects, connecting property owners with EVSE installation vendors, and facilitating installer quotes. Additionally, Frontier will provide services to implement budgeted program funds for publicly accessible EVSE in the Monterey Bay Area. This is intended to complement the CALeVIP – South Central Coast Incentive Project, which is currently being implemented in San Luis Obispo and Santa Barbara Counties.

Electrify Your Home Program
On March 9, 2022, the CCCE Operations board approved an agreement with Energy Solutions for program implementation services to support a residential electrification program. Because Energy Solutions is currently partnered with the State of California, this agreement allowed CCCE to integrate CCCE program funds with the statewide California TECH Initiative (“TECH Program”), a statewide residential electrification program. Shortly after launch, the TECH Program experienced an unprecedented uptake of incentives, depleting most of the program funds available in CCCE’s service area. In response, CCCE is “backfilling” funds to provide the same level of incentives as if TECH funds were still available.

The first step toward rolling out a “mid-stream” program directed at providing incentives to contractors is to increase awareness and create a contractor network. Since launching the Electrify Your Home Program on May 10, 2022, over 100 contractors that serve the CCCE service area have enrolled and been certified, allowing them to be eligible to apply for CCCE incentives. As of August 2022, Energy Solutions has received nearly $35,000 in eligible incentive requests from contractors serving CCCE customers and is in the process of fulfilling these requests. With the success of the TECH Program, staff expects this program to continually grow in scale over the coming year.

New Construction Electrification Program
On October 5, 2021, CCCE launched the third iteration of the New Construction Electrification Program (NCEP). Through a first-come-first-served application process, the NCEP provides housing developers incentive funds to build all-electric housing. Like previous iterations of the program, projects must be built to all-electric standards for all energy utility needs including but not limited to water heating, space heating, and cooking appliances. This year, incentives are available only for affordable housing units. A $2,500 incentive will be provided on a per unit basis and will be provided “downstream” to developers upon successful completion of the project. In FY 21/22 a total of $1.5 million is available to housing developers. The following tables summarize program performance based on approved applications.

Figure 5 (above): Shows New Construction Electrification Program funds reserved by County. Note: Funds are distributed upon project completion. Projects typically take between 2 – 5 years to complete.

Figure 6 (above): Shows estimated annual GHG emissions reductions by County resulting from increased all-electric housing under the New Constuction Electrification Program in FY 21/22.

Agricultural Electrification Program
On October 5, 2021, staff launched the third iteration of the Agricultural (Ag) Electrification Program.

The Ag program provides incentives to CCCE customers for replacement of fossil fuel powered agricultural equipment with new electric equipment including irrigation pumps, farm tools, utility vehicles and other equipment. Incentives will be provided “downstream” directly to the customer after proof of purchase and/or installation of equipment.

The incentive is open to CCCE customers whose primary business is agriculture production and/or agriculture processing. This year, eligible customers will receive between 70 – 100% of the total project cost up to $30,000 for qualifying projects. Applications submitted by small businesses with higher impact projects - in terms of greenhouse gas emissions reduction – will be supported by the highest incentive levels. In FY 21/22, a total of $600,000 is available for incentives and will remain available through September 30, 2022, or until funds are fully reserved. The following tables summarize program performance based on approved applications.

Figure 7 (above): Shows Ag Electrification Program funds reserved or distributed by County in FY 21/22.

Figure 8 (above): Shows Ag Electrification Program funds approved by status. Funds Reserved includes funds that have been approved but not yet paid out (project still not complete); Submitted for Payment includes funds that have been sent out for payment; Project Complete includes funds that have been received by the applicant.

Figure 9 (above): Shows Ag Electrification Program funds reserved or distributed by equipment type in FY 21/22.

Figure 10 (above): Shows estimated annual GHG emissions reductions by County resulting from ag equipment fuel switching under the Ag Electrification Program in FY 21/22.

Figure 11 (above): Shows the amout of funds reserved or distributed to Small Businesses (“Yes”) compared to larger businesses (“No”). Small Business is defined under Government Code Section 14837(d)(1).

Electric School Bus Program
On October 5, 2021, CCCE launched the third iteration of the Electric School Bus Program. This program provides public schools and school districts enrolled in CCCE service with an opportunity to receive funding for the purchase of an all-electric school bus. The Electric School Bus Program is intended to reduce GHG emissions from school buses, as well as eliminate harmful pollutants emitted by traditional diesel buses near students. CCCE will contribute up to 50% of the cost, not to exceed $200,000 for each school bus.

In May 2022, CCCE closed the Electric School Bus Program after receiving and approving nine (9) applications. Since the program closed, one of the award recipients cancelled their reservation, leaving a total of eight (8) awarded applications. Funds will be distributed directly from CCCE to the bus manufacturer of the awardee’s choosing on behalf of the awardee. The following tables summarize program performance based on approved applications.

Figure 12 (above): Shows Electric School Bus Program funds reserved, by County in FY 21/22. Note: funds are not anticipated to be distributed/paid in FY 21/22 for newly submitted applications. Funds are distributed upon manufacture and delivery of the school bus. Due to supply chain shortages, buses typically take between 1 – 3 years to complete.

Figure 13 (above): Shows the number of Electric School Buses reserved in each County under the FY 21/22 Electric School Bus Program.

CALeVIP – South Central Coast Incentive Project
On August 5, 2021, CCCE – in coordination with State and regional funding partners – launched the CALeVIP – South Central Coast Incentive Project (SCCIP). Implemented by the Center for Sustainable Energy (CSE), this program follows the FY 19/20 CALeVIP – Central Coast Incentive Project to provide incentives for public DC Fast Chargers and Level 2 Electric Vehicle Chargers. CALeVIP – SCCIP will make a total of $12 million in funds available over two years in San Luis Obispo, Santa Barbara, and Ventura counties. CCCE is contributing $1,750,000 with our funds available only to CCCE customers and 50% of the funds dedicated to disadvantaged and low to moderate income communities.

On the first day after launching the SCCIP, the program saw over 250 applications and an oversubscription for DC Fast Charger funds. At this time, all funding is reserved. CSE is moving to finalize funding approval and distribute funding to approved projects.

Figure 14 (above): Shows the status of funds by equipment type for San Luis Obispo County.

Figure 15 (above): Shows the status of funds by equipment type for Santa Barbara County.

Community Education and Workforce Grant Program
On December 9, 2021, CCCE launched the second iteration of the Community Education and Workforce Grant Program (“Grant Program”). The purpose of the Grant Program is to provide support for organizations to address education and outreach barriers that impact CCCE Energy Programs focused on Electrification, as well as to address gaps in local workforce training and development slowing the advancement of electrification of the building and/or transportation sectors. A total of $400,000 has been made available for the Grant Program, with a maximum grant amount of $100,000 per grant recipient geared towards encouraging more workforce development proposal submissions. The application closed on February 7, 2022, and CCCE received ten (10) applications requesting a total of $699,029.

After a thorough application review process, CCCE staff selected six grant recipients for the FY 21/22 Community Education and Workforce Grant Program. Subsequently, one of the award recipients could no longer accept the award, bringing the total number of awardees to five (5), for a total of $300,000 in grant funds reserved. Award recipients are provided in the table below:

Recipient Name Project Title Total Funding
Approved
Green Light Labs, LLC.

Electrifyze: Consumer EV Education & EV
Workforce Development for a Fossil Fuel Free
Central Coast $100,000
Romero Institute Electrify my Home! / ¡Electrifica mi casa! $30,000 Santa Barbara Foundation
Partners In Education, Energy Sector Job
Readiness, and Internship Project $50,000
Community Bridges
Family Resource Collective Outreach Program for
Electrification Awareness $100,000
United Way of Santa Barbara County Fun in the Sun 2022 $20,000 Total $300,000
TO: Operations Board
FROM: Tom Habashi, Chief Executive Officer
DATE: September 21, 2022
RE: Update on CCCE Member Agency Services

MEMBER AGENCY SERVICES UPDATE
On December 16, 2021, CCCE launched Member Agency Services (MAS). This comprehensive offering enables CCCE to proactively engage its 33 Member Agencies in program design, utilization, outreach, and support for non-program initiatives designed to reduce greenhouse gas emissions and the reliance on fossil fuels. CCCE has launched a new standalone webpage to fully communicate MAS efforts:
https://3cenergy.org/member-agency-services/
Existing program offerings under MAS include:
 Greenhouse Gas Inventory
 Reach Code Program
 Planning, Implementation, and Innovation Grant Program  Light-Duty Electric Vehicle Program
 Medium and Heavy-Duty Electric Vehicle Program
In addition to programs, MAS will support Member Agencies in other initiatives furthering CCCE’s strategic goals, including data access and analysis, and regional policy making support.

Provided in this memorandum is an update on recent Member Agency Services implementation activities.

Light-Duty Electric Vehicle Program
As of 09/12/2022, CCCE has received applications from the Cities of Watsonville and San Luis Obispo, and from the Counties of Monterey and Santa Barbara to support the purchase of electric fleet vehicles and electric vehicle charging equipment. Staff have approved two applications from the County of Santa Barbara including $90,721.00 to support the installation of 22 EV chargers at five sites and also $150,000 in incentive reservations for the purchase of 30 EVs. Staff are reviewing applications and working closely with other Member Agency staff to ensure project details, compliance and then reserve funding. Staff is also actively conducting outreach to and supporting other Member Agencies with anticipated applications.

Medium and Heavy-Duty Electric Vehicle Program
As of 09/12/2022, CCCE has approved and sent out Letters of Intent to support five projects at five Member Agencies with incentives up to $250,000 each. The awardees are: City of Santa Cruz, City of Capitola, City of Watsonville, City of Guadalupe, and City of Carmel by-the-Sea. The program is over-subscribed, and Staff have closed this program for the remainder of FY 21/22. Staff estimates that over 15 years, these projects will reduce GHG emissions by approximately 5,500 Metric Tons.

Member Agency
Applicant
Project Description Amount Reserved
City of Santa Cruz Trash Hauler $ 250,000
City of Capitola Street Sweeper $ 250,000
City of Watsonville Trash Hauler $ 250,000
City of Carmel by The Sea Street Sweeper $ 250,000
City of Guadalupe Municipal Bus $ 250,000
TOTAL $ 1,250,000
Planning, Implementation, and Innovation Grant Program
On December 9, 2021, CCCE launched the first iteration of the Planning, Implementation, and Innovation Grant Program (Grant Program). The purpose of the Grant Program is to provide CCCE Member Agencies with support for planning and implementation related to the electrification of municipal fleets, properties, and community infrastructure. A total of $600,000 has been made available for the Grant Program, with a maximum grant amount of $150,000 per grant recipient. The application closed on February 7, 2022, and CCCE received nine (9) applications requesting a total of $942,033.

After a thorough application review process, CCCE staff selected six grant recipients for the FY 21/22 Community Education and Workforce Grant Program.  Award recipients are provided in the table below:

Recipient Name Project Title Total Funding
Approved
County of Monterey
Sustainability Program
Strategic Planning to Overcome
Barriers to Deep Decarbonization $ 150,000
City of Santa Cruz
Master Municipal Transportation
Electrification Plan $ 75,000
City of Watsonville
Existing Buildings Electrification Pilot in
the City of Watsonville $ 150,000
City of Watsonville*
Regional Climate and Electrification
Grant Administration $ 100,000
City of San Luis Obispo
Fleet Electrification Infrastructure
Roadmap $ 70,000
County of Santa Barbara
Sustainability Division
Equitable Electrification Outreach
through the Central Coast Community
Action Campaign $ 99,053
Total $ 644,053
*This application and project are a coordinated effort among the Counties of Santa Cruz and Monterey, the Cities of Santa Cruz and Watsonville, the Community Foundation of Santa Cruz County, and Ecology Action.

To scale the value and impact of the work CCCE is supporting through these grants, the Planning, Implementation, and Innovation Grant Awardees are now presenting project progress updates at our regular Working Group meetings with focus on electrification of Transportation and Buildings. Some will present during each of the Quarterly Member Agency Meetings as well.

Member Agency 1:1 Engagements
CCCE staff continue engaging and actively scheduling meetings with Member Agency staff to share information about Member Agency Services and solicit information, feedback, and ideas. As of 09/12/2022 CCCE staff have held one-on-one meetings with twenty-five (25) Member Agencies.

Member Agency Building and Transportation Electrification Working Groups CCCE has established and is facilitating working groups focused on building and transportation electrification to drive participation in existing programs and inform future program design; identify common needs, barriers, and scalable solutions for regional electrification; and identify and share resources between Member Agencies and CCCE.

The Building Electrification Working Group (BEWG) has met five times since March 2022. The group meets next on 9/15. Most recently, the BEWG met on 7/21 with 29 participants from 11 Member Agencies. Energy Programs staff facilitated several informative presentations including from: the City of Watsonville and County of Monterey regarding their Planning, Innovation, and Implementation Grant funded projects; TRC regarding CCCE’s forthcoming and redesigned Reach Code Program for Member Agencies, and Central California Energy Watch staff regarding their no-cost energy efficiency services available to CCCE Member Agencies in Monterey, Santa Cruz, and San Benito Counties.

At publication of this report, the Transportation Electrification Working Group (TEWG) will have met four times since April 2022. The group meets next on 10/6. At its most recent meeting on 8/4, the TEWG had presentations from two Member Agency Grantees discussing their fleet electrification planning efforts as well as a presentation from the Electrification Coalition, a non-profit group organization offering no-cost transportation electrification services to public agencies.

CCCE Contracts < $100k
Vendor Total Engagement Amount From To Service Scope Remarks 1 Bloomberg Finance L.P. $53,320 9/2/2022 9/1/2024 2-year license agreement for Bloomberg Terminal for financial data, risk analytics, and performance tracking

Central Coast Community Energy (3CE) Operations BoardSeptember 21, 2022

Central Coast Community Energy (3CE) Operations Board
September 21, 2022