Agenda packet — Central Coast Community Energy (3CE) Policy Board, September 22, 2022

Policy Board of Directors
Thursday, September 22, 2022
9:00 AM
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940
IMPORTANT NOTICE REGARDING COVID-19 MEETING REQUIREMENTS The special procedures in place to minimize the spread of the COVID-19 virus may supersede general meeting procedures and delay distribution of materials to members, although every effort will be made to ensure comments and materials received prior to the meeting end will be made part of the record.

Based on guidance from the California Department of Public Health and the California Governor’s Office, in order to minimize the spread of the COVID-19 virus, please do the following:

1. You are strongly encouraged to observe the live stream of the CCCE Policy Board of Director’s meeting at: https://3cenergy.hylandcloud.com/203agendaonline/Meetings/Search?dropid=4

2. The CCCE Board Room remains open. If you attend the CCCE Policy Board of Director’s meeting in person:
a. Additional seating with audio of the CCCE Policy Board of Director’s meeting will be available in the CCCE Main Conference Room, located at 70 Garden Court, Suite 300, Monterey, CA 93940. Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact Heather Vowell, 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.

3. If you choose not to attend the CCCE Policy Board of Director’s meeting but wish to make a comment on a specific agenda item, you may please submit your comment as set out below. The timing of public comment shall be at the discretion of the Chair. Options for public comment are as follows:
a. To have your comments distributed to the 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., Policy 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/82977357049
OR the following phone number(s):

US: +1 669 900 6833 or +1 669 219 2599
Enter this Meeting ID number: 829 7735 7049 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 set if for a future meeting. Speakers are limited to 3 minutes each.
. Corrections and Additions
Board Clerk will announce agenda corrections and proposed additions, which will be acted on by the Board as provided in Sections 54954.2 of the California Government Code.

PRESENTATIONS

1. Presentation Regarding the Delivery and Operation of CCCE's Slate II, LLC Solar Plus Storage and Mountain View Wind Power Purchase Agreements (Information Only)

CONSENT AGENDA

2. Approve Minutes from the June 15, 2022 Meeting of the Policy Board of Directors (Action Item)

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

4. Approve the CCCE Community Advisory Council FY 22-23 Work Plan Unanimously Supported by the CAC (Action Item)

5. Quarterly Regulatory and Legislative Report (Information Only)

6. Treasurer's Report (Information Only)

REGULAR AGENDA

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

8. Operations Board of Director'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

10. Adopt Resolution PB-2022-02 Approving the Fifth Amendment to the Central Coast Community Energy Joint Powers Agreement and Approve Inclusion of the City of Atascadero as a CCCE Member (Action Item)

11. Adopt Resolution No. PB-2022-03 Approving Addendum No. 4 to the CCCE Community Choice Aggregation Implementation Plan and Statement of Intent (Action Item)

12. Adopt Resolution No, PB-2022-04 Approving CCCE’s FY 2022/23 Operating Budget And Adjustment to Electric Generation Rates in the PG&E Service Territory (Action Item) Board Member Reports & Comments (Information Only)
Adjournment
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Policy Board of Directors
Wednesday, June 15, 2022
9:00AM
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940

MINUTES
The meeting was called to order at 9:00am with 7 members attending in person and 7 members attending via teleconference pursuant to AB 361 and a quorum established.

Directors Present in-person: Carbone, McPherson, Quiroz-Carter, Baron, Waage, Vice Chair Williams, Chair McShane
Directors Present via teleconference: Adams (arrived at 9:04am), Brooks, Kosmicki, Marx, Morales (arrived at 9:03am), Nomura, Orona (arrived at 9:15am), Cordero, Velazquez Directors Absent: Meyers
The Chair opened the public comment period for items not listed on the agenda.

The following individual(s) addressed the Board.
 John Smigelski
 Michael Saint
The Chair closed public comment period.

Clerk announced a correction to the Minutes from the February 16, 2022. Item 10- the CAC Bylaws were not approved.

PRESENTATION

1. Received Presentation on 2017-2021 Impact Report
The Chair opened the public comment period.

The following individual(s) addressed the Board.
 Michael Saint
 Eric Veium
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The Chair closed public comment period.

ACTION: Presentation only; No Action Required

2. Receive Presentation and Approve CCCE's Finance Strategic Initiatives and Direct the CEO to take Necessary Steps to Implement the Strategic Initiatives
The Chair opened the public comment period.

The following individual(s) addressed the Board.
 Michael Saint
 Eric Veium
The Chair closed public comment period.

ACTION: Presentation Only; No Action Required

CONSENT AGENDA
The Chair opened the public comment period.

No public comments were received.

The Chair closed public comment period.

Item 4 pulled for discussion by Director Kosmicki
MOTION: Moved by Vice Chair Williams, Seconded by Director McPherson to approve the Consent Agenda.

ACTION: The Motion Carried with a roll call vote: 15/0/2 AYES: Adams, Brooks, Carbone, Kosmicki, Marx, McPherson, Nomura, Orona, Cordero, Quiroz-Carter, Baron, Velazquez, Waage, Vice Chair Williams, Chair McShane NOES: None
ABSENT: Meyers, Morales (left at 10:10am)

3. Approved Minutes from the February 16, 2022 Meeting of the Policy Board with correction to item 10

4. Found, Pursuant to AB 361 and in order for the Policy Board of Directors to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Policy Board of Directors has Reconsidered the Circumstances of the State of Emergency; and the 3 of 193
Monterey County Health Officer Continues to Recommend Social Distancing Measures for Meetings of Legislative Bodies

5. Appointed Jaya Bajpai as CCCE's Treasurer

6. Adopted the Financial Statements for the Fiscal Year 2020/2021 as prepared by CCCE and Maher Accountancy, Inc.

7. Directed CEO to take Necessary Steps to Prepare a PPA Pre-Pay Bond Issuance through California Community Choice Financing Authority

8. Approved Underserved Communities Outreach and Engagement Plan

9. Quarterly Regulatory and Legislative Report (Information Only)

10. Treasurer's Report (Information Only)

REGULAR AGENDA

11. Community Advisory Council Report
Chair opened public comment period.

There was no public comment received.

Chair closed public comment period.

ACTION: Discussion Item; No Action Required

12. Operations Board Report
Chair opened public comment period.

There was no public comment.

Chair closed public comment period.

ACTION: Discussion Item; No Action Required

13. CEO’s Report
a) Potential Impacts of Market Volatility
b) Rates Expectations for FY 22-23
c) SCE Cost of Service
d) Staffing Challenges
Chair opened public comment period.
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There was no public comment.

Chair closed public comment period.

ACTION: Discussion Item; No Action Required

14. Received Presentation from Management Partners Inc. Detailing Community Advisory Committee Ad Hoc Subcommittee Agreements and Accepts Further Recommendations 1-4 and Suspends the Community Advisory Council Bylaws for 12 Months to Improve the Relationship between Staff and the CAC Chair opened public comment period.

The following individual(s) addressed the Board.
 Seth Capron
 Alex Lantsberg
 Carole Mintzer
 Wayne Norton
 Michael Saint
 Magi Amma
 Benjamin Eichert
 Brandon O’Rourke
Chair closed public comment period.

MOTION: Moved by Director McPherson, Seconded by Director Adams to approve Management Partners recommendations 1-4 and suspending the Bylaws for 12 months to improve the relationship between Staff and the CAC
ACTION: The Motion Passed with a roll call vote: 12/0/4 AYES: Adams, Brooks, Carbone, Marx, McPherson, Morales, Nomura, Orona, Cordero, Velazquez, Waage, Vice Chair Williams, Chair McShane
NOES: Kosmicki, Quiroz-Carter, Baron
ABSENT: Meyers
SUBSTITUTE MOTION: Moved by Director Marx, Seconded by Director Kosmicki to approve Management Partners Recommendations 1-4 suspending amending the Bylaws for 12 months.

ACTION: The Motion Failed with a roll call vote: 6/10/1 AYES: Kosmicki, Marx, Morales (returned at 10:19am), Orona, Quiroz- Carter, Baron NOES: Adams, Brooks, Carbone, Kosmicki, Marx, McPherson, Nomura, Orona, Cordero, Waage, Vice Chair Williams, Chair McShane
ABSENT: Meyers
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15. Supported CCCE Turnkey Ownership Model for Front of the Meter Energy Storage Assets and Direct CEO to take Necessary Steps to Prepare a Bond Issuance for Later Policy Board Review and Approval Chair opened public comment period.

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

MOTION: Moved by Director Waage, Seconded by Vice Chair Williams to approve ACTION: The Motion Passed with a roll call vote: 15/1/1 AYES: Adams, Brooks, Carbone, Kosmicki, Marx, McPherson, Morales, Nomura, Orona, Cordero, Quiroz-Carter, Baron, Rios, Waage, Vice Chair Williams, Chair McShane NOES: None
ABSENT: Meyers

16. Adopt Resolution No. PB-2022-01 to Support Senate Bill 1020 to Establish An Alternative Funding Source for Public Benefit Programs Currently Funded Through Electricity Delivery Rates Chair opened public comment period.

There were no public comments.

Chair closed public comment period.

MOTION: Moved by Director Adams, Seconded by Director Carbone to approve ACTION: The Motion Passed with a roll call vote: 16/0/1 AYES: Adams, Brooks, Carbone, Kosmicki, Marx, McPherson, Morales, Nomura, Orona, Cordero, Quiroz-Carter, Baron, Rios, Vice Chair Williams, Chair McShane NOES: Waage
ABSENT: Meyers
Board Member Reports & Comments
Adjournment 12:39 pm
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Staff Report Item 3
TO: CCCE Policy Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Consider Finding, Pursuant to AB 361 and in order for the Policy Board of Directors to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Policy 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 22, 2022
RECOMMENDATION:

This recommends the Policy 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. 7 of 193
The Monterey County Health Officer has recommended social distancing measures for meetings of legislative bodies. 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.
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Staff Report Item 4
TO: CCCE Policy Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Approve the CCCE Community Advisory Council FY 22-23 Work Plan Unanimously Supported by the CAC (Action Item)
DATE: September 22, 2022
RECOMMENDATION:

This recommends that the Policy Board of Directors approve the CCCE Community Advisory Council (“CAC”) FY 22-23 Work Plan which was unanimously supported by the CAC at its August 2022 meeting.

BACKGROUND:

At its June 15, 2022, meeting, the Policy Board received a report detailing the Community Advisory Council Ad Hoc Subcommittee agreements and accepting and implementing further recommendations regarding the CAC’s role and operations. Including, among others, the recommendation that staff develop, in coordination with the CAC Chair, an annual work agenda for Policy Board approval that directs the work of the CAC.

At its August 3, 2022, meeting, the CAC discussed and unanimously supported seeking Policy Board approval of the CCCE CAC FY 22-23 Work Plan (the “Work Plan”).

DISCUSSION/ANALYSIS:

The Management Partners recommended annual work agenda seeks to provide direction to the CAC’s work by specifying areas requiring feedback and input from the CAC while defining a timeframe for CAC input into energy programs offerings. Management Partners further recommends the annual work plan be created jointly between the CAC Chair and CCCE’s professional staff with any disagreements resolved at the Policy Board’s adoption.

CCCE’s professional staff, in coordination with the CAC Chair, developed the proposed Work Plan with two goals. First, aligning the CAC with CCCE Board priorities. Second, focusing the CAC’s role in support of outreach and support of CCCE’s energy programs.
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The first component retains the advisory role of the CAC for items requested by the Boards or CCCE professional staff. The work items for this initial component are not individually enumerated but align with CCCE Board priorities and may include program portfolio, evaluations, and engagement.

The second component of the jointly proposed Work Plan furthers community outreach and education in support of CCCE and its energy programs. As proposed, this second component of the Work Plan establishes informational / work study sessions through which the CAC can facilitate additional public education while providing meaningful input and feedback for CCCE’s professional staff’s development of a strategic Regional Transportation Electrification Action Plan.

FISCAL IMPACT:

The FY 22-23 Operating Budget accounts for additional costs associated with staff time and resources for the identification and coordination of speakers, as well as the development of communication and engagement materials.

CONCLUSION:

The Policy Board’s approval of the FY 2022-23 CAC Work Plan provides direction and focuses the CAC’s work to support the CCCE Boards and professional staff in achieving CCCE’s goals.

ATTACHMENT:

1. FY 2022-23 CAC Work Plan
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2022-23 Work Plan
Community Advisory
Council
2022-23
Mission:

Central Coast Community Energy provides clean
electricity and electrification programs to reduce
greenhouse gas emissions and strengthen our local
community.
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The CAC Work plan aligns with CCCE Board priorities as set out in the CCCE operating budget, as well as de ining CAC community outreach to promote CCCE’s energy programs.
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Central Coast Community Energy is governed by separate Policy and Operations Boards. CCCE’s professional staff carries out the policy direction of the governing boards.

The Advisory Council is comprised of 15 members who serve in an advisory capacity to the boards.
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Provide feedback,
as requested by
CCCE professional
staff or Policy and
Operations Boards
(the “Boards”) on
CCCE’s professional
staff proposals and
recommendations
Actively engage
with CCCE’s
communities to assist
CCCE operational
and policy goals,
engagement,
and community
education regarding
CCCE’s programs
and initiatives
Support CCCE boards
and professional
staff with legislative
advocacy in
furtherance of CCCE’s
operational and policy
goals.

ANTICIPATED BOARD AND STAFF REQUESTED WORK ITEMS MAY INCLUDE:
• Energy Program Portfolio
• Energy Program Evaluation
• Communication and Outreach Strategies in support of Energy Programs & Customer Engagement and Education
◦ Commercial / Industrial customers
◦ Ag customers
◦ Residential Customers
◦ Underserved Communities
• Other matters identified by the Boards and/or professional staff. 12 of 193
October 2022 – Anticipated Presenter(s): Member Agencies Grant Awardees Addressing Transportation Electrification
• What are our member agencies doing?
• What are their existing plans, goals, funding sources? • How are member agencies setting priorities regarding infrastructure technology, siting, and accessbility?
• How are member agencies thinking about and implementing underserved community engagement?
• How have local jurisdictions promoted infrastructure and charging investments that promote EV transit / transportation?

ANTICIPATED ADDITIONAL WORK ITEMS FURTHERING COMMUNITY

OUTREACH AND EDUCATION IN SUPPORT OF CCCE AND ITS ENERGY PROGRAMS MAY INCLUDE:

Informational/Work Study Sessions facilitating the CAC’s support of CCCE staff’s development of a strategic Regional Transportation Electrification Action Plan supporting CCCE goals.

December 2022 – Anticipated Presenter(s): Implementor
• Within the CCCE service area, what are the different opportunities and challenges for light duty and heavy-duty electrification?
• What constitutes our region’s traffic patterns, origins, destinations, and what are the most common barriers not being addressed?
• Where are the opportunities for accelerated deployment of EVs and chargers? February 2023 – Anticipated Presenter(s): IOU:
• What investments need to occur in our local distribution system and in technologies to serve the increased load?
• Distribution system support for electrification deployment; existing IOU program(s) and electrification support for transportation electrification. • How is PG&E prioritizing this funding and project selection? Is PG&E considering or providing for equity considerations in siting?
• What level of partnership/cooperation from CCAs, cities, and community organizations does PG&E need to be successful?
February 2023 – Presentation of 40% Action Plan
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April 2023 – Anticipated Presenter(s): Electric Vehicle Infrastructure Trade Association
• What is the status and funding mechanism for current federal and state funding opportunities? • What types of entities can take advantage of available funding? • What are the most competitive projects to get funding? • How do we best position entities to obtain funding?
• Have regionalized approaches demonstrated success in obtaining competitive grant funding elsewhere?
June 2023 – Anticipated Presenter(s): Community Choice Aggregator / Regional Communications Experts
• What opportunities have other CCAs seen?
• What approaches have other CCAs utilized to deploy transit/transportation electrification in all sectors?
• How has technology advanced to make transportation electrification more available for leveraging additional electrification efforts?
• What are the best marketing and engagement strategies to build community buy in, engage underserved communities, and promote customer behavior? August 2023 – Presentation of 90+% Action Plan
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Quarterly Regulatory and Legislative Update
September 22, 2022
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2 Table of Contents
REGULATORY UPDATE............................................................................................................................................................3 Executive Summary..............................................................................................................................................................3 Integrated Resource Planning (IRP): GHG Reduction Planning........................................................................4 Resource Adequacy (RA): Grid Reliability Planning ..............................................................................................5 Provider of Last Resort (POLR): Emergency Transition Planning...................................................................6 Power Charge Indifference Adjustment (PCIA) .......................................................................................................7 California Arrearages Payment Program (CAPP)....................................................................................................8 Percentage of Income Payment Plan (PIPP) Pilot Programs..............................................................................8 California Energy Commission Load Management Standards...........................................................................9 Demand Flexibility Through Electric Rates ...............................................................................................................9 LEGISLATIVE UPDATE.............................................................................................................................................................9 Executive Summary..............................................................................................................................................................9 CCA-Specific Bills ................................................................................................................................................................10 The California State Budget............................................................................................................................................10 New State Climate and Clean Energy Goals.............................................................................................................11 Potential Extension of the Diablo Canyon Nuclear Power Plant’s Operating Life..................................12 Federal Legislation: The Inflation Reduction Act .................................................................................................12 16 of 193
3 REGULATORY UPDATE
Executive Summary
If you measure regulatory activity by the adoption of major new policy, the summer of 2022 has been deceptively quiet. While the electricity sector has gotten more public attention than ever, much of that has played out in Sacramento between the governor’s office and the legislature. Largely out of that spotlight, the regulatory world has not produced any major new decisions since the Policy Board last met in June.

But the lack of new policy should not be confused for a lull. This summer, most of the highest-priority proceedings CCCE is engaged with have been either gathering proposals for what will become the next new policy or working through the often-fraught implementation of Decisions adopted earlier this year.

In the former case CCCE has been working with other stakeholders to improve contingency planning around CCA failure, important even for healthy CCAs due to the significant “insurance” funding that must be posted up front via the Financial Security Requirement, and to back down a potential California Energy Commission mandate to provide logistically infeasible real-time rates. (See the Provider of Last Resort and Load Management Standard sections, respectively.) In the latter case, the fundamental reliability planning reform the California Public Utilities Commission (CPUC) adopted in June has opened a long road of fleshing out implementation details and evaluating how they change the resources CCCE needs to procure to meet future Resource Adequacy requirements (Resource Adequacy section). Similarly, the kickoff of a new Integrated Resource Planning cycle in February 2022 has shifted the focus of that proceeding away from the CPUC to the load-serving entities, as CCCE staff prepare the first IRP that will incorporate the Policy Board’s commitment to a 100% RPS with monthly balancing by 2030. Staff have also continued implementation work for the Percentage of Income Payment Plan pilot, which will begin operation this fall and in early 2023.

That said, two CPUC actions this summer merit special attention. First, Board members may recall that in May, Southern California Edison attempted to raise CCCE’s Financial Security Requirement (FSR) from $147,000 to $2.9 Million. This 20x increase highlighted serious flaws in how the FSR methodology uses energy forward market data to estimate potential emergency procurement costs if a CCA fails. CCCE and other SCE-area CCAs moved quickly to protest the increase, and on June 29th the CPUC agreed and struck it down.

Second, on September 8th, the Commission issued a Ruling in the Integrated Resource Planning proceeding proposing adjustments to the Mid-Term Reliability (MTR) mandate through which CCCE must procure 291 MW of new capacity by 2026. This Ruling is the Commission’s first formal acknowledgment of how the supply chain disruptions of the past few years have complicated compliance with the original MTR timeline. If adopted, these changes could amount to a partial extension of the deadlines for 2023 and 2024 out to 2025.

Further regulatory updates are below. This report is not comprehensive but represents the issues with the largest and/or most immediate impact to CCCE’s customers and operations. CCCE staff are available for further discussion if Board members have questions or would like additional detail. 17 of 193
4 Integrated Resource Planning (IRP): GHG Reduction Planning Integrated Resource Planning (IRP) is the California Public Utilities Commission’s (CPUC’s) process for ensuring that the electricity sector meets its portion of California’s 2030 greenhouse gas (GHG) reduction goals. Each load-serving entity (LSE) must biennially submit an Integrated Resource Plan to the CPUC detailing the resources it plans to procure through 2035 and demonstrating that these will produce GHG emissions at or below an assigned benchmark based on the LSE’s share of statewide load.

The next IRP is due on November 1, 2022. Staff have spent the summer working with Ascend Analytics to model a series of resource portfolios adhering to the procurement policies set by the Policy Board, including a 100% Renewable Portfolio Standard with monthly balancing by 2030. The portfolios selected by Ascend’s model are then run through the CPUC’s GHG calculator to determine their associated GHG emissions in comparison to CCCE’s assigned IRP GHG benchmark. 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 Ruling1 proposing changes to the Mid-Term Reliability (MTR) mandate that could have significant impacts on CCCE procurement.2 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.
1 The Ruling (R. 20-05-003)
2 Recall that in the MTR Decision (D.21-06-035) the CPUC ordered 11,500 MW of new resource procurement between 2023 and 2026 to ensure reliability in the years when, among other factors, the Diablo Canyon nuclear power plant was expected to retire. The Decision required all load-serving entities over which the CPUC has any degree of jurisdiction to procure load-proportional shares of that 11,500 MW, with CCCE’s share being 291 MW.

See Table 6 in the MTR Decision for the procurement requirements in each year. 18 of 193
5 Resource Adequacy (RA): Grid Reliability Planning
Resource Adequacy (RA) is the CPUC’s main grid reliability planning program. While the IRP process focuses on ensuring that sufficient new resources are built to meet projected demand and GHG reduction targets, the RA program is designed to ensure that existing resources actually show up in the market such that there is enough capacity available to meet peak demand and avoid blackouts. This is accomplished by requiring load-serving entities such as CCCE to sign capacity contracts wherein resources pledge to be “on call” and available to the market for certain time periods each year in exchange for the extra revenue. Each year, LSEs must buy and show to the Commission RA contracts for enough generating capacity to meet their proportion of the forecasted system peak load.3 There have been no major policy changes to the RA program since the Policy Board’s last meeting, but that is because a major restructuring of the program was finalized in June and the focus has shifted to implementation. On June 24th, the CPUC issued a Decision fundamentally altering the structure of the RA program to address the shifting reliability challenges facing California’s increasingly renewable-dominated grid.4 The new model, called “slice-of-day,” will require LSEs to show contracts for capacity available in each of the 24 hours of the day rather than only in the hour of peak demand as was previously required. Slice-of-day is designed to ensure reliability more rigorously in a renewable-dominated grid by avoiding the assumption built into in the previous RA framework that every resource was available in all hours of the day.

While the June Decision selected the broad structure of the new framework, many details remain to be fleshed out. In order to decide these the Commission is holding ten stakeholder workshops lasting through October 2022 to gather feedback on the open questions. These will be followed by a second Decision by Q1 of 2023 adopting the Commission’s selected answers into official program rules. The finished slice-of-day framework will go into effect for the first time in 2023 for 2024 year-ahead planning on a trial-only basis and will take full effect including penalties for deficiencies in the following year.

For CCCE, the two biggest questions associated with the move to slice-of-day are 1) how the new program will affect the RA value of resources CCCE already holds long-term contracts for, and 2) how the new requirements may change the types of RA resources CCCE needs to contract with going forward. The first is still being determined, as the amount of RA capacity different renewable resources should count for under slice-of-day is among the open questions being discussed in the workshops.

Initial answers to the second question can be gleaned from the fundamental structure of slice-of-day.

The previous RA structure set a single capacity requirement in each month based on projected peak demand, and all available RA resources could be stacked until that requirement was met. But since slice-of-day requires capacity in every hour of the day, there will be need for capacity available at night when solar production is at zero. CCCE’s recent investments in geothermal and planned future investments in offshore wind will help meet this need. But short-term, there are simply not enough of these resources to fulfill overnight capacity needs. Natural gas RA contracts will thus become increasingly necessary in 3 There are three distinct types of RA, all of which have separate requirements. System RA can come from any resource anywhere in the California Independent System Operator’s (CAISO) balancing area. Local RA must come from specific locally constrained areas to ensure that those areas have sufficient generation online, and Flexible RA must be from resources with fast-ramping capabilities to assist in addressing the duck curve. 4 RA 24-hour framework D. 22-06-050
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6 the initial years of slice-of-day implementation, as gas will be the most widely available resource eligible to meet the overnight capacity requirements of slice-of-day.

Finally, CCCE and other load-serving entities are working through the significant uncertainty introduced into RA procurement by the introduction of a Central Procurement Entity (CPE) for Local RA.5 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 inaugural 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 and given LSEs very little time between receiving their final System RA requirement and having to demonstrate compliance. CCCE is pushing the Commission to clarify these ambiguities and to avoid a repeat of the potential cost increases they create.

Provider of Last Resort (POLR): Emergency Transition Planning “Provider of Last Resort,” or POLR, is the term used for the retail electric provider that ratepayers are transferred to if their chosen provider becomes unable to provide service. The investor-owned utilities (IOUs) were traditionally assumed to be the POLRs should a CCA fail, and in 2019 this responsibility was made explicit through SB 520 (Hertzberg, 2019).6 SB 520 designated the IOUs as POLRs in their service territories and called on the CPUC to more clearly define POLR responsibilities, as well as outline a path for an LSE other than an IOU to eventually serve as POLR if desired. In March 2021, the Commission opened a rulemaking to implement SB 520 that is being conducted in two phases. Phase 1 will clarify the rules for the IOUs initially serving as the POLR and should conclude by the end of Q2 2023. Phase 2, not yet scheduled, will develop a process for other entities including CCAs to become POLR in the future.

The major issues at stake for CCAs in this proceeding are the scope of the POLR’s procurement responsibility and potential increases to the Financial Security Requirement (FSR). The FSR is an amount CCAs must post in cash or letters of credit to cover the estimated cost of transitioning their customers back to the POLR in the event of sudden CCA failure. Calculation of the FSR estimates both the administrative costs of the transition as well as the cost of emergency resource procurement to cover the sudden increase in demand the POLR must serve.

From the time the current FSR methodology was adopted in 2018 until May 2022, the procurement portion of the FSR has been set at zero because market prices have been low enough that the POLRs’, aka the IOUs’, bundled generation rates were predicted to cover any necessary procurement. That left only the administrative costs, resulting in the FSR sitting at the Commission-set minimum of $147,000.

However, the increase in global energy prices this year drove Southern California Edison to request a much higher number in the May 2022 biannual FSR calculation. SCE requested an FSR of $2.9 million from CCCE, and significantly raised the FSRs of other CCAs with load in SCE’s service territory as well. FSR requirements for CCAs in PG&E and SDG&E’s service territories remained at the minimum $147,000 due 5 Decision 20-06-002 created the CPE
6 Bill Text - SB-520 Electrical service: provider of last resort. 20 of 193
7 to those IOUs’ higher bundled generation rates providing more of a buffer to offset increased procurement costs.

The SCE-area CCAs worked through CalCCA to protest the requested increase and made a strong enough case for the CPUC to reject SCE’s request and drop the FSR back to $147,000.7 The rejection hinged on the fact that the FSR methodology is in the process of being comprehensively revised, and the CPUC decided that such a large increase should not be implemented until that process had been completed.

This series of events has highlighted the flaws in the current FSR methodology and made the FSR redesign that was already happening in the POLR proceeding that much more critical. CCCE and CalCCA are actively involved in designing an improved methodology, and CalCCA submitted comments and reply comments in July and August outlining proposals.8 A major theme of these proposals is that an investment-grade credit rating, which validates a CCA’s financial health and risk management approach, should be allowed to reduce the FSR a CCA must post. Allowing load-serving entities with demonstrably lower risk of failing to post lower FSRs would free up that money to be invested in new resources or programs, lower rates, or otherwise used in ways that create greater benefit to customers than being tied up in the FSR. Stakeholders are now waiting for a CPUC Energy Division staff proposal that could be released any time, and a final decision restructuring the FSR methodology is scheduled for Q1 2023.

Power Charge Indifference Adjustment (PCIA)9
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.101112 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.13 On August 15th, the CPUC submitted their Answer to 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.

On the legislative side, CCCE continued to support Senator Anthony Portantino’s 2021 bill SB 612, which would have given CCAs the choice to receive an allocation of those resources paid for through the PCIA by CCCE customers but retained by the IOUs.14 However, the bill did not advance further this session and, since this was the second year of the two-year legislative cycle, is now dead. With the 7 CalCCA Protest of SCE FSR increases
8 CalCCA comments and reply comments containing proposals 9 The Power Charge Indifference Adjustment is a fee paid by CCA customers. It represents the above-market costs of resources the relevant IOU purchased on behalf of the CCA’s customers before the CCA was formed and is designed to prevent cost shifts onto the IOU’s remaining bundled customers after the CCA forms and the CCA’s customers depart bundled service. The higher the PCIA, the lower the “headroom” between the total that CCCE customers pay (PCIA rate plus CCCE generation charges) and bundled customer generation rates.
10 D.21-05-030 available at 385738144.PDF (ca.gov)
11 CCCE’s Application for Rehearing of D.21-05-030 is available at 389957193.PDF (ca.gov) 12 Decision rejecting CCCE’s Application for Rehearing is available at 467470751.PDF (ca.gov) 13 Court docket available at: California Courts - Appellate Court Case Information 14 Bill Text - SB-612 Electrical corporations and other load-serving entities: allocation of legacy resources. 21 of 193
8 aforementioned lawsuit and elsewhere, CCCE continues to advocate for CCA customers to receive the value and benefits of resources they already pay for through the PCIA.

California Arrearages Payment Program (CAPP)
The adopted FY 2022-2023 state budget includes $1.2 billion for a second round of the California Arrearages Payment Program. Recall that CAPP is a pandemic relief program wherein state funds are used to directly buy down residential and commercial utility arrearages accumulated during the pandemic. The second round of funding will go towards arrearages accrued through December 31, 2021.

Through the first round of CAPP, CCCE was able to provide $2,915,136 in credits to active and inactive residential and active commercial customer accounts. This was roughly 45% of customers’ initial need, the same percentage of asking amount granted to all LSEs applying for CAPP funds in the first round.

With the program renewed for a second round, CCCE will complete another application in order to secure relief for the remaining debt.

The 2022 CAPP will follow the same format as the program’s first iteration, with the sole major distinction that this round of funding is available only to residential customers. The cycle will begin with an IOU application process evaluated by Department of Community Services and Development (CSD) for the dispersal of funds. The application will be available online no later than September 29, 2022. CCCE will collaborate with PG&E and SCE to ensure all necessary information is provided. After awards are made, participating entities must issue funds as bill credits to customers no later than April 3, 2023.

Percentage of Income Payment Plan (PIPP) Pilot Programs CCCE has been collaborating with both PG&E and SCE in designing a new pilot program called the Percentage of Income Payment Plan (PIPP).15 PIPP customers will receive a monthly bill cap based on a percentage of their income, standardized for two tiers of income (up to or over 100% Federal Poverty Level) and two household size categories. The goal of the pilot is to gather data to inform the development of a long-term PIPP program that 1) reduces residential disconnections, 2) encourages energy conservation and participation in energy saving and energy management programs, and 3) controls program costs and avoids arrearages and uncollectable bill debt.

The pilot program is open to CARE-eligible customers that either 1) are in zip codes with highest rates of recurring disconnections, or 2) were disconnected 2 or more times during the 12 months prior to the disconnection moratorium. CCCE has been allotted 515 customers in the PG&E service area and, pending approval by the CPUC, 28 customers in the SCE service area. Cost recovery for both bundled and unbundled participants will be through the electric Public Purpose Program (PPP) charge. The PPP is paid on the delivery side of the electricity bill by all ratepayers, both bundled and unbundled, and thus represents access to a new funding model for CCA affordability programs. CCCE has been participating in a bi-weekly PIPP Working Group which includes IOUs, CCAs, consumer advocates, and community-based organizations to make recommendations for long-term program design after the 48-month pilot. 15 The PIPP pilots were authorized in October 2021 by Decision 21-10-012, available here: 413823568.PDF (ca.gov)
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9 The CPUC is scheduled to rule on which entities will be authorized to participate in PIPP in September 2022. Dependent upon the Commission approval, PG&E will begin enrolling PIPP eligible customers in waves starting in October. CCAs with customers in PG&E’s service area are expected to have their enrollment begin January 2023. For SCE customers, enrollment will likely begin in October and be staggered in waves. SCE and approved CCAs in SCE’s service area will begin the program simultaneously.

California Energy Commission Load Management Standards
After the CPUC, the California Energy Commission (CEC) is the state agency most involved with electricity sector regulation. While the CEC does not have jurisdiction over CCAs, it is charged with improving demand flexibility in order to support grid reliability. A proposed set of regulations under that initiative would, if adopted, require CCCE to develop additional rate options.

The proposed updates to the CEC’s Load Management Standards (LMS), initially introduced in December 2021, would require all investor-owned utilities, municipal utilities, and CCAs to develop optional rates for each customer class based on the hourly real-time cost of energy. CalCCA has pushed back on the proposed regulations in meetings with CEC staff and three rounds of comments.16 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 been amenable to CalCCA’s objections. 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, but in the meantime a new proposal has been opened at the CPUC that may carry similar implications (see below).

Demand Flexibility Through Electric Rates
The CPUC has opened a new proceeding focused on increasing demand flexibility that has the potential to impact CCA ratemaking.17 Citing reliability, affordability, and decarbonization concerns, the Commission intends to produce a new set of ratemaking principles and guidance aimed at increasing access to and participation in demand flexibility rates for all California consumers.

The goals of this rulemaking do not clash with CCCE’s mission, and the process could create useful resources. However, in realizing these goals the Commission should not mandate practices CCAs lack the data access to carry out, put CCA customers at a structural disadvantage compared to bundled customers, or infringe on CCAs’ right to set their own rates. CCCE is following this proceeding alongside CalCCA and will engage, as necessary.

LEGISLATIVE UPDATE
Executive Summary
August 31st was the last day of a state legislative session more focused on energy issues than any in recent memory. The blackouts of 2020, resource development delays caused by the pandemic, 16 See the CEC’s LMS docket for CalCCA comments and other documents associated with this initiative. 17 Rulemaking 22-07-005
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10 increasing concern about grid reliability and the affordability of energy, and climate change-driven stress on the grid combined to make energy a key focus for both legislators and Governor Newsom. As in previous sessions there were a few bills aimed specifically at CCAs, none of which advanced past their house of origin. But the main event was a series of bills affecting the sector at the landscape level: a record-setting climate and energy package in the adopted FY 2022-2023 state budget, a new set of state climate goals, and the potential extension of the Diablo Canyon nuclear power plant’s (DCNPP) operating life. Combined with the historic passage of the Inflation Reduction Act at the federal level, the legislation coming out of this session raises the bar on GHG reduction but also provides new tools to accelerate decarbonization, protect grid reliability, and get new clean resources built.

Going into fall, staff will be focused on identifying and pursuing all opportunities for CCCE to access new funding from these bills, starting with the $1.2 billion allocated for customer utility debt relief in a second round of California Arrearages Payment Plan funding. Staff will also be evaluating whether and how the new policies may affect resource development and energy markets, particularly the extended operating life of DCNPP and the expansion of the federal Investment Tax Credit to standalone storage resources. Finally, staff will meet with legislative offices to debrief the session and begin planning for the 2023 legislative session.

CCA-Specific Bills
Legislators introduced two bills this session that would have impacted CCAs specifically. Neither passed its house of origin, in part due to CalCCA and CCA advocacy early in the session. They are useful to review as preparations for the 2023 session begin:

SB 1287 (Bradford) would have raised the minimum CCA Financial Security Requirement (FSR) from $147,000 to $500,000 and the timespan covered by the FSR from six to twelve months.18 Had it advanced, this bill would have raised costs for CCAs and preempted the comprehensive FSR reform that is in progress at the CPUC and expected to conclude in Q1-Q2 of 2023.

SB 881 (Min) was focused on the Integrated Resource Planning process at the CPUC. Its goal was to help ensure the electricity sector met its GHG reduction targets by expanding the CPUC’s authority to order resource procurement and impose penalties in the IRP program.19 However, the bill’s wording did not require individual load-serving entities to be noncompliant in order to be assigned additional resource mandates. This would have had the perverse result of discouraging proactive investments in clean resources because they would not have reduced the possibility of additional procurement mandates.

The California State Budget
This year the state budget was one of the primary forums for climate and energy policymaking. The budget adopted on June 30th for the July 1st start of FY 2022-2023 included $38.8 billion in new investments related to climate change over the next five years. About $8.1 billion of this package was focused on the energy sector. Major elements of this package relevant to CCCE include:
 $2.2 billion for an Electricity Supply Strategic Reliability Reserve. In order to provide a safety net that protects grid reliability during heat waves and other extreme demand events, the budget orders the Department of Water Resources (DWR) to procure a portfolio of reserve 18 SB 1287. Board members may refer to the Provider of Last Resort section for further context on the FSR. 19 SB 881
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11 resources. This program will allow the DWR to extend the operating life of resources planned for retirement, and to receive priority approval of 1) new emergency generators of 5MW or higher, 2) new storage systems 20MW or more with at least 2 hours discharge capacity, and 3) projects that support the development of zero-emission generation capacity.

This will be the most involved DWR has been in energy procurement since its emergency actions during the California energy crisis in 2000-2001. While the legislative language regarding the types of resources DWR may procure is broad, communication around the program from the governor’s office and in legislative hearings indicated that much of it is likely to be fossil generation. If this is the case, the DWR procurement is unlikely to compete directly with load-serving entities trying to build new renewable and carbon-free resources. However, the broader grid and market impacts of the program will require further evaluation as implementation of the program proceeds.
 $1.2 billion for a second round of the California Arrearages Payment Program, as discussed in greater detail in the regulatory section.
 $200 million for a Demand Side Grid Support Program. The California Energy Commission will use this funding to support programs and provide incentives that increase demand flexibility on the grid, enabling quick demand reductions during times of grid stress. Though CCCE does not currently offer any unique demand response programs, CCCE will work with the investor-owned utilities to help CCCE customers identify and participate in statewide demand response programs through which they may be able to access this funding.  $140 million for a Long Duration Energy Storage Program (LDESP). Through the LDESP the California Energy Commission will provide financial incentives for long-duration storage projects (defined as at least 1 MW of discharge capacity over at least 8 hours). The program is designed to catalyze the commercialization of new storage technologies, so lithium-ion batteries and pumped storage projects are not eligible. Eligible technologies include compressed or liquid air, flow batteries, advanced chemistry batteries, mechanical storage, thermal storage, aqueous battery, and hydrogen. Preference will be given to projects that, among other characteristics, begin commercial operation by 2028. As these incentives become available, CCCE staff will incorporate them into planning for future storage procurement.

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 2040.20 These new targets are not expected to change CCCE procurement policy given that CCCE is committed to a 100% RPS by 2030. The new targets were originally only part of the bill; the remainder laid the groundwork for taxpayer funding of certain climate programs currently funded through distribution-side electricity rates. These provisions were intact when the Board voted to support SB 1020 at the June meeting but were struck in August. 20 SB 1020
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12 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 2045.21 This goal was introduced in 2018 in Governor Brown’s Executive Order B-55-1822 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).23 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.

Federal Legislation: The Inflation Reduction Act
This summer also saw passage of the Inflation Reduction Act of 2022, the largest single investment in clean energy in the country’s history. The successor to the Build Back Better Act passed by the U.S.

House of Representatives last fall, the Inflation Reduction Act (IRA) passed both houses of Congress in mid-August and was signed into law on August 16th, 2022. 21 AB 1279
22 EO B-55-18
23 SB 846
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13 For CCCE, the most important part of the bill is the changes it makes to the tax incentives for renewable and clean resources. The IRA fully renews the existing Investment Tax Credit (ITC) and Production Tax Credit (PTC) programs, but it also extends the ITC to standalone energy storage projects for the first time. This is an important change. Until now storage has only been eligible for the ITC when physically paired with renewable generation in a specific hybrid configuration. The requirements of ITC eligibility for these hybrid storage facilities have clashed with how the California Independent System Operator models and issues dispatch orders to storage on the California grid, creating confusion and delays. The IRA recognizes the critical role that storage will play in the future and makes it easier to build storage projects where they are most needed without losing ITC funding. CCCE staff are working to incorporate the new ITC into planning for future storage investments. 27 of 193
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
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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 29 of 193
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
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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
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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
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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
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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 34 of 193
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 USES
Current 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
35 of 193
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
36 of 193
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
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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 $ 170,609,000 $ 178,052,000 $ 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 39 of 193
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 40 of 193
Staff Report Item 7
TO: CCCE Policy Board of Directors
FROM: Seth Capron, Community Advisory Council Chair
SUBJECT: Community Advisory Council's Report (Discussion Item) DATE: September 22, 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. 41 of 193
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. 42 of 193
Staff Report Item 8
TO: CCCE Policy Board of Directors
FROM: Carlos Palacios, Operations Board Chair
SUBJECT: Operations Board of Director's Report (Discussion Item) DATE: September 22, 2022
June 30, 2022 Meeting of the Operations Board
The following actions were taken by the Board:

Adopted Resolution OB-2022-02 approving amendments to the CCCE Energy Risk Management Policy.

Directed the Chief Executive Officer to Execute the Project Participation Agreement between California Community Power and Participating Community Choice Aggregators and other Ancillary Documents Necessary to Participate in a Power Purchase Agreement with Ormat Nevada Inc. for up to 27.98 MW of Renewable Geothermal Resources with a Term of 20 Years and a Not to Exceed Amount of $412,000,000.

Directed the Chief Executive Officer to Execute the Project Participation Agreement between California Community Power and Participating Community Choice Aggregators and other Ancillary Documents Necessary to Participate in a Power Purchase Agreement with Open Mountain Energy LLC for up to 3.03 MW of Renewable Geothermal Resource with a Term of 20 Years and a Not to Exceed Amount of $43,000,000.

Authorized the Chief Executive Officer to Execute Investment Management Agreement with RBC Global Asset Management (U.S.) Inc. In a Form Substantially Similar to the Attached and Subject to Approval by CCCE General Counsel for a Term of 2 Years and a Not to Exceed amount of $400,000.

Authorized the Chief Executive Officer to Execute Custodial with Principal Bank for a Term of 2 Years and a Not to Exceed amount of $100,000.

August 10, 2022 Meeting of the Operations Board
The following actions were taken by the Board:
43 of 193
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 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
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
Authorized CEO to Execute Prepay Transaction Legal Services Agreement with Nixon Peabody in an Amount Not to Exceed $600k
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
Unanimously Supported The Framework Of and Key Changes Proposed In The CCCE FY 2022-23 Operating Budget
44 of 193
Staff Report Item 9
TO: CCCE Policy Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: CEO's Report (Discussion Item)
DATE: September 22, 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 45 of 193
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. 46 of 193
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.

ATTCHMENT(S):

1. Update on FY 21/22 CCCE Energy Programs

2. Update on CCCE Member Agency Services

3. Customer Enrollment and Engagement Report

4. CCCE Contracts Under $100k
47 of 193
TO: Policy Board of Directors
FROM: Tom Habashi, Chief Executive Officer
DATE: September 22, 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.
48 of 193
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. 49 of 193
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. 50 of 193
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. 51 of 193
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. 52 of 193
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. 53 of 193
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.
54 of 193
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 55 of 193
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.
56 of 193
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. 57 of 193
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
58 of 193
TO: Policy Board
FROM: Tom Habashi, Chief Executive Officer
DATE: September 22, 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
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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. 60 of 193
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. 61 of 193
Customer Enrollment and Engagement Report
September 2022

MEMBER AGENCY SERVICES
- Meetings were held with the following agencies:

City of Monterey
County of Monterey
City of Salinas
City of Sand City
City of Solvang
- CCCE Annual Update presentations were delivered to:

City of Santa Cruz
County of Santa Barbara
- The Transportation Electrification Working Group met on August 4 Monterey, 127
Santa Cruz, 58
San Benito, 36
San Luis Obispo, 107
Santa Barbara, 93
1 0 20 40 60 80 100 120 140
OPT OUTS BY COUNTY (90 DAYS)

CONCERNS ABOUT

GOVERNMENT RUN

POWER AGENCY
3% DECLINE TO PROVIDE
25%

DISLIKES BEING

AUTOMATICLY ENROLLED
14%
OTHER
13%

RATE OR COST

CONCERNS
36%

SERVICE OR BILLING

CONCERNS
9%

CONCERNS ABOUT GOVERNMENT RUN POWER AGENCY

DECLINE TO PROVIDE

DISLIKES BEING AUTOMATICLY ENROLLED
OTHER

RATE OR COST CONCERNS

SERVICE OR BILLING CONCERNS

OPT-OUT REASONS
JUNE-AUGUST 2022
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97.72%

97.34%

98.37%

96.67%

98.30%

98.11%

98.82%

97.70%

98.55%

99.02%

95.68%

98.28%

96.57%

95.58%

97.32%

97.99%

96.96%

98.75%

98.55%

97.23%

98.37%

97.75%

96.15%

98.98%

98.14%

96.89%

96.26%

95.42%

98.31%

94.46%

99.16%

98.25%

98.59%

ARROYO GRANDE

WATSONVILLE INC

SOLVANG INC

SOLEDAD INC

SEASIDE INC

SCOTTS VALLEY

SANTA MARIA

SANTA CRUZ CO

SANTA CRUZ

SANTA BARBARA CO

SAND CITY

SAN LUIS OBISPO

SAN JUAN BAUTISTA

SAN BENITO CO

SALINAS

PISMO BEACH

PASO ROBLES

PACIFIC GROVE

MORRO BAY

MONTEREY CO

MONTEREY
MARINA

HOLLISTER

GUADALUPE

GROVER BEACH

GREENFIELD

GONZALES
GOLETA

DEL REY OAKS

CARPENTERIA
CARMEL

CAPITOLA

BUELLTON

93.00% 93.50% 94.00% 94.50% 95.00% 95.50% 96.00% 96.50% 97.00% 97.50% 98.00% 98.50% 99.00% 99.50%

PERCENTAGE OF ELIGIBLE ENROLLMENT
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91.91%

93.93%

87.50%

96.81%

96.22%

93.80%

94.38%

95.83%

80.53%

86.90%

96.88%

95.75%

97.50%

95.33%

98.73%

96.18%

98.68%

97.55%

94.29%

94.10%

93.50%

96.34%

99.54%

98.49%

97.59%

98.75%

86.83%

98.56%

95.86%

98.13%

97.40%

99.52%

98.07%

WATSONVILLE

SOLVANG

SOLEDAD

SEASIDE

SCOTTS VALLEY

SANTA MARIA

SANTA CRUZ COUNTY

SANTA CRUZ

SANTA BARBARA COUNTY

SAND CITY

SAN LUIS OBISPO

SAN JUAN BAUTISTA

SAN BENITO COUNTY

SALINAS

PISMO BEACH

PASO ROBLES

PACIFIC GROVE

MORRO BAY

MONTEREY COUNTY

MONTEREY
MARINA

HOLLISTER

GUADALUPE

GROVER BEACH

GREENFIELD

GONZALES
GOLETA

DEL REY OAKS

CARPINTERIA
CARMEL

CAPITOLA

BUELLTON

ARROYO GRANDE

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%
LOAD % OF ELIGIBLE ACCOUNTS
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EARNED MEDIA
“Santa Maria Planning Commission Approves Battery Energy Storage Facility,” Noozhawk Lompoc Record “CCCE Electrify Your Ride Program,” Monterey County Weekly “Casa Diablo IV (CD 4) Comes Online,” Power Magazine
“Electrify Your Home Program,” (Heat Wave) KSBY News

SOCIAL MEDIA

PLATFORM FOLLOWERS TOP-PERFORMING CONTENT
FACEBOOK 1,842 Aug. 2 –Sept. 2 3C-REN and CCCE flyer on "Stay Cool This Summer with Higher-Performing Air
Conditioning" electric heat pump event
FACEBOOK EN ESPANOL 178 Mountain View Wind Repowering Event photos INSTAGRAM 1,072 Mountain View Wind Repowering Event photos TWITTER 1,291 American Clean Power Week
LINKEDIN Mountain View Wind Repowering Project
Carbon Farming Ag Event photos
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CCCE Contracts < $100k
Vendor Total Engagement Amount From To Service Scope Remarks 1 Heather Vowell $ 50,400 6/24/2022 12/24/2022 Board Clerk Service for a six month term with an early termination option 2 Alicia Hicks $ 93,000 6/24/2022 12/24/2022 Human Resource Service for six months term with an early termination option 3 Liebert Cassidy Whitmore $ 10,000 7/19/2022 As needed Legal assistance in benefit evaluation and drafting matters 4 MassMailer, Inc. $ 11,070 6/9/2022 6/8/2023 Communication support that includes customer emails and e-newsletter distribution. 5 Hootsuite $ 15,785 7/25/2022 7/24/2024 Social Media Planning Platform 6 S&P Global Rating $ 34,000 5/16/2022 Until Complete Evaluation for CCCE consisting of an analysis of the hypothetical scenario/s. 7 Management Partners $ 5,000 1/28/2022 Until Complete Faciliatory Service and Presentation of the Recommendation at the 6/14/22 CCCE Policy Meeting 8 Monarch Solutions $ 50,000 5/1/2022 9/30/2023 Facilitation and management support for the purpose of improving CAC role and relationships with CCCE and Boards
9 LHi Group, Inc
$ 95,000
5/17/2022 5/16/2024 Temporary staff augmentation service for 1 year followed by automatic an automatic renewal unless one party provides written notice in advance to not move forward 13 Bloomberg Finance L.P. $ 53,320 5/17/2022 5/16/2024 2-year license agreement for Bloomberg Terminal for financial data, risk analytics, and performance tracking
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Staff Report Item 10
TO: CCCE Policy Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Adopt Resolution PB-2022-02 Approving the Fifth Amendment to the Central Coast Community Energy Joint Powers Agreement and Approve Inclusion of the City of Atascadero as a CCCE Member (Action Item)
DATE: September 22, 2022
RECOMMENDATION:

This recommends that the Policy Board adopt Resolution No. PB-2022-02 approving the Fifth Amendment to the Central Coast Community Energy (“CCCE”) Exercise of Joint Powers Agreement (the “Agreement”) and approve adding the City of Atascadero as a CCCE member.

BACKGROUND:

In 2017, the Counties of Santa Cruz, Monterey, and San Benito, along with most jurisdictions therein, entered into the Agreement establishing Monterey Bay Community Power (“MBCP”), in part, to reduce greenhouse gas emissions related to the use of power.

On December 5, 2018, the Policy Board of Directors adopted Resolution PB-2018-07 approving the First Amendment to the Agreement, adding the Cities of San Luis Obispo and Morro Bay.

On December 4, 2019, the Policy Board of Directors adopted resolution No. PB-2019-04 approving the Second Amendment to the Agreement, adding eleven new MBCP member agencies.

On June 3, 2020, the Policy Board of Directors adopted Resolution PB-2020-02 approving the Third Amendment to the Agreement, changing MBCP’s name to Central Coast Community Energy.

On September 4, 2020, the Policy Board of Directors adopted Resolution PB-2020-05 approving the Fourth Amendment to the Agreement, adding the City of Buellton.

The Agreement provides that it may be amended by an affirmative vote of at least two-thirds of Policy Board of Directors following a notice of such proposed amendment. Notice was duly sent to all member agencies on August 16, 2022, for this proposed Fifth Amendment. 67 of 193
DISCUSSION/ANALYSIS:

The inclusion of the City of Atascadero into CCCE increases the number of member agencies to 34 and represents another step to providing the option of community choice energy across the entire Central Coast.

At its February 8, 2022, meeting, the City of Atascadero’s City Council adopted Resolution No. 2022-004 Requesting Membership in Central Coast Community Energy and Authorizing the Mayor or City Manager to Execute the Joint Powers Authority Agreement as Amended by CCCE. On February 22, 2022, the City of Atascadero’s City Council passed Ordinance No. 652 Authorizing the Implementation of a Community Choice Aggregation Program by Participating in Central Coast Community Energy’s Community Choice Aggregation Program.

Atascadero’s total electricity demand is approximately 113 GWh or approximately 2% of CCCE’s future demand upon enrollment.

If approved by the Policy Board, CCCE expects to serve the City of Atascadero as early as January 1, 2024. Staff has prepared the required Addendum to the CCCE Implementation Plan submitted as a separate item for the Board’s approval. The Board approved Addendum will then be submitted to the California Public Utilities Commission for certification prior to the end of the 2022 calendar year.

CCCE and the City of Atascadero will work closely during Q4 of 2022 and Q1 of 2023 to coordinate any necessary enrollment activities.

If approved by the Policy Board, the amendments to the JPA will become effective on September 23, 2022. The addition of the City of Atascadero will share a seat with the City of Paso Robles, resulting in an additional voting member of the Policy and Operations Boards. The Cities of Atascadero and Paso Robles will need to jointly determine their appointed members through either a memorandum of understanding or requesting the County of San Luis Obispo empanel a City Selection Committee. The Cities of San Luis Obispo and Morro Bay (who previously shared a seat with the City of Paso Robles) will continue with current Board appointments.

FISCAL IMPACT:

The fiscal impact is generally limited to staff time. There will be an incremental addition of revenue and cost of energy based on the number of enrolled customers and their estimated load consumption within the City of Atascadero.

CONCLUSION:

The Policy Board’s adoption of this Resolution amending the CCCE JPA agreement will make the City of Atascadero CCCE’s thirty-fourth (34th) member agency.
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ATTACHMENTS:

1. Draft Amended Joint Powers Agreement

2. Draft Amendment No. 5 to the CCCE Joint Exercise of Powers Agreement

3. Draft Resolution PB-2022-02 Amending the CCCE Joint Exercise of Powers Agreement w/o attachments

4. Resolution 2022-004 from the City of Atascadero, February 8, 2022

5. Ordinance 652 from the City of Atascadero, February 22, 2022 69 of 193
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JOINT EXERCISE OF POWERS AGREEMENT RELATING TO AND CREATING

CENTRAL COAST COMMUNITY ENERGY
OF
Monterey, Santa Cruz, San Benito, and Santa Barbara
Counties and Certain Cities in San Luis Obispo County
This Joint Exercise of Powers Agreement, effective on the date determined by Section

2.1, is made and entered into pursuant to the provisions of Title 1, Division 7, Chapter 5, Article 1 (Sections 6500 et seq.) of the California Government Code relating to the joint exercise of powers among the Parties set forth in Exhibit B, establishes Central Coast Community Energy(“Authority”), and is by and among the Counties of Monterey, Santa Cruz, San Benito, and Santa Barbara who become signatories to this Agreement (“Counties”) and those cities and towns within the Counties of Monterey, Santa Cruz, San Benito, Santa Barbara, and San Luis Obispo who become signatories to this Agreement and relates to the joint exercise of powers among the signatories hereto.

RECITALS
A. The Parties share various powers under California law, including but not limited to the power to purchase, supply, and aggregate electricity for themselves and customers within their jurisdictions.

B. In 2006, the State Legislature adopted AB 32, the Global Warming Solutions Act, which mandates a reduction in greenhouse gas emissions in 2020 to 1990 levels.

The California Air Resources Board is promulgating regulations to implement AB 70 of 193
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32 which will require local governments to develop programs to reduce greenhouse gas emissions.

C. The purposes for entering into this Agreement include:
a. Reducing greenhouse gas emissions related to the use of power in Monterey, Santa Cruz, San Benito, Santa Barbara, and San Luis Obispo Counties and neighboring regions;
b. Providing electric power and other forms of energy to customers at affordable rates that are competitive with the incumbent utility; c. Carrying out programs to facilitate electrifying the transportation, public infrastructure, and the building sectors to reduce reliance on fossil fuels and thus reduce greenhouse gas emissions;
d. Stimulating and sustaining the local economy by lowering electric generation charges and creating local jobs as a result of Central Coast Community Energy’s CCE program; and
e. Promoting long-term electric rate stability and energy security and reliability for residents through local control of electric generation resources.

D. It is the intent of this Agreement to promote the development and use of a wide range of renewable energy sources and energy programs, including but not limited to solar, wind, and geothermal energy production. The purchase of renewable power sources will be the desired approach to decrease regional greenhouse gas emissions and accelerate the State’s transition to clean power resources to the extent feasible.
a. It is further desired to establish a long-term energy portfolio that prioritizes the use and development of State, local and regional renewable resources and carbon free resources.
b. In compliance with State law and in alignment with the Authority’s desire 71 of 193
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to stimulate the development of renewable power, the Authority shall draft an Integrated Resource Plan that includes a range of regional renewable development potential in the California Central Coast Region and plans to incorporate local power into its energy portfolio as technically and economically feasible.

E. The Parties desire to establish a separate public Authority, known as Central Coast Community Energy, under the provisions of the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.) (“Act”) in order to collectively study, promote, develop, conduct, operate, and manage energy programs.

F. The Parties anticipate adopting an ordinance electing to implement through the Authority a common Community Choice Aggregation (CCA) program, an electric service enterprise available to cities and counties pursuant to California Public Utilities Code Sections 331.1(c) and 366.2. The priority of the Authority will be the consideration of those actions necessary to implement the CCA Program.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions hereinafter set forth, it is agreed by and among the Parties as follows:

ARTICLE 1: DEFINITIONS AND EXHIBITS

1.1. Definitions. Capitalized terms used in the Agreement shall have the meanings specified in Exhibit A unless the context requires otherwise.

1.2. Documents Included. This Agreement consists of this document and the following exhibits, all of which are hereby incorporated into this Agreement.

Exhibit A: Definitions
Exhibit B: List of the Parties
Exhibit C: Regional Allocations
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ARTICLE 2: FORMATION OF CENTRAL COAST COMMUNITY ENERGY

2.1. Effective Date and Term. This Agreement shall become effective and “Central Coast Community Energy” shall exist as a separate public Authority on the date that this Agreement is executed by at least three Initial Participants from the Counties of Monterey, Santa Cruz, and San Benito and the municipalities within those counties, after the adoption of the ordinances required by Public Utilities Code Section 366.2(c)(12).

The Authority shall provide notice to the Parties of the Effective Date. The Authority shall continue to exist, and this Agreement shall be effective, until this Agreement is terminated in accordance with Section 6.4, subject to the rights of the Parties to withdraw from the Authority.

2.2. Formation. There is formed as of the Effective Date a public Authority named Central Coast Community Energy. Pursuant to Sections 6506 and 6507 of the Act, the Authority is a public Authority separate from the Parties. Pursuant to Sections 6508.1 of the Act, the debts, liabilities or obligations of the Authority shall not be debts, liabilities or obligations of the individual Parties unless the governing board of a Party agrees in writing to assume any of the debts, liabilities or obligations of the Authority. A Party who has not agreed to assume an Authority debt, liability or obligation shall not be responsible in any way for such debt, liability or obligation even if a majority of the Parties agree to assume the debt, liability or obligation of the Authority. Notwithstanding Section 7.4 of this Agreement, this Section 2.2 may not be amended unless such amendment is approved by the governing board of each Party.

2.3. Purpose. The purpose of this Agreement is to establish an independent public Authority in order to exercise powers common to each Party to study, promote, develop, conduct, operate, and manage energy, energy efficiency and conservation, and other energy-related programs, and to exercise all other powers necessary and incidental to accomplishing this purpose. Without limiting the generality of the foregoing, the Parties 73 of 193
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intend for this Agreement to be used as a contractual mechanism by which the Parties are authorized to participate in the CCA Program, as further described in Section 4.1. The Parties intend that other agreements shall define the terms and conditions associated with the implementation of the CCA Program and any other energy programs approved by the Authority.

2.4. Powers. The Authority shall have all powers common to the Parties and such additional powers accorded to it by law. The Authority is authorized, in its own name, to exercise all powers and do all acts necessary and proper to carry out the provisions of this Agreement and fulfill its purposes, including, but not limited to, each of the following powers, subject to the voting requirements set forth in Section 3.7 through 3.7.1:

2.4.1. to make and enter into contracts;

2.4.2. to employ agents and employees, including but not limited to a Chief Executive Officer;

2.4.3. to acquire, contract, manage, maintain, and operate any buildings, infrastructure, works, or improvements;

2.4.4. to acquire property by eminent domain, or otherwise, except as limited under Section 6508 of the Act, and to hold or dispose of any property; however, the Authority shall not exercise the power of eminent domain within the jurisdiction of a Party without approval of the affected Party’s governing board;

2.4.5. to lease any property;

2.4.6. to sue and be sued in its own name;

2.4.7. to incur debts, liabilities, and obligations, including but not limited to loans from private lending sources pursuant to its temporary borrowing 74 of 193
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powers such as Government Code Sections 53850 et seq. and authority under the Act;

2.4.8. to form subsidiary or independent corporations or entities if necessary, to carry out energy supply and energy conservation programs at the lowest possible cost or to take advantage of legislative or regulatory changes;

2.4.9. to issue revenue bonds and other forms of indebtedness;

2.4.10. to apply for, accept, and receive all licenses, permits, grants, loans or other aids from any federal, state, or local public agency;

2.4.11. to submit documentation and notices, register, and comply with orders, tariffs and agreements for the establishment and implementation of the CCA Program and other energy programs;

2.4.12. to adopt Operating Rules and Regulations;

2.4.13. to make and enter into service agreements relating to the provision of services necessary to plan, implement, operate and administer the CCA Program and other energy programs, including the acquisition of electric power supply and the provision of retail and regulatory support services; and

2.4.14. to permit additional Parties to enter into this Agreement after the Effective Date and to permit another entity authorized to be a community choice aggregator to designate the Authority to act as the community choice aggregator on its behalf.

2.6. Compliance with Local Zoning and Building Laws and CEQA. Unless state or federal law provides otherwise, any facilities, buildings or structures located, constructed, or caused to be constructed by the Authority within the territory of the Authority shall comply with the General Plan, zoning and building laws of the local jurisdiction within which the facilities, buildings or structures are constructed and comply with the California Environmental Quality Act (“CEQA”).

ARTICLE 3: GOVERNANCE AND INTERNAL ORGANIZATION

3.1. Boards of Directors. The governing bodies of the Authority shall consist of a Policy Board of Directors (“Policy Board”) and an Operations Board of Directors (“Operations Board”).

3.1.1. Both Boards shall consist of Directors representing any of the four Counties of Monterey, Santa Cruz, San Benito, or Santa Barbara that become a signatory to the Agreement, and Directors representing any of the Cities or Towns, which are members of the Authority, within the five Counties of Monterey, Santa Cruz, San Benito, Santa Barbara, or San Luis Obispo (“Directors”). Each Director shall serve at the pleasure of the governing board of the Party who appointed such Director and may be removed as Director by such governing board at any time. If at any time a vacancy occurs on the Board, a replacement shall be appointed to fill the position of the previous Director within 90 days of the date that such position becomes vacant.

3.1.3. Operations Board Directors must be the senior executive/County Administrative Officer of any County that is the signatory to this Agreement, or senior executive/City Manager from any municipality that is the signatory to this Agreement. Jurisdictions may appoint an alternate to serve in the absence of its Director on the Operations Board. Alternates for the Operations Board must be administrative managers of the County or administrative managers of the governing board of the municipality that is the signatory to this Agreement.

3.1.4. Board seats will be allocated under the following formulas. Policy and Operations Board seats for those jurisdictions that pass a CCA ordinance by February 28, 2017 (“Initial Participants”) will be allocated on a one jurisdiction, one seat basis until such time as the number of member jurisdictions exceeds eleven. Once the JPA reaches more than eleven-member agencies, the Policy and Operations Boards’ composition shall shift to a regional allocation based on population size. This allocation shall be one seat for each jurisdiction with a population of 50,000 and above, and shared seats for jurisdictions with populations below 50,000 allocated on a sub-regional basis, as set forth in Exhibit C.

Notwithstanding the above, the County of San Benito shall be allotted one seat.

3.1.5. Shared board seats, as set forth in Exhibit C, Regional Allocation shall have a term of two years and will be determined either by agreement among the parties sharing the seat or through the City Selection Committee in the respective County. Following appointment, either by agreement or by the City Selection Committee, Directors may be reappointed and serve multiple terms. In the event the addition of new parties requires that an established board seat transition to a shared seat or that a shared seat expand to include new parties, the sitting Director 77 of 193
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will automatically be the first representative for that shared seat to ensure continuity and maintain experience.

3.2. Quorum. A majority of the appointed Directors shall constitute a quorum, except that less than a quorum may adjourn in accordance with law.

3.3. Powers and Functions of the Boards. The Boards shall exercise general governance and oversight over the business and activities of the Authority, consistent with this Agreement and applicable law. The Boards shall provide general policy guidance to the CCA Program.

3.3.1. The Policy Board will provide guidance/approval in the areas of strategic planning and goal setting, passage of Authority budget and customer rates, and large capital expenditures outside the typical power procurement required to provide electrical service.

3.3.2. The Operations Board will provide oversight and support to the Chief Executive Officer on matters pertaining to the provision of electrical service to customers in the region, focusing on the routine, day-to-day operations of the Authority.

3.3.3. Policy Board approval shall be required for any of the following actions, including but not limited to:
(a) The issuance of bonds, major capital expenditures, or any other financing even if program revenues are expected to pay for such financing;
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(b) The appointment or removal of officers described in Section 3.9, subject to Section 3.9.3;
(c) The appointment and termination of the Chief Executive Officer; (d) The adoption of the Annual Budget;
(e) The adoption of an ordinance;
(f) The setting of rates for power sold by the Authority and the setting of charges for any other category of service provided by the Authority;
(g) The adoption of the Implementation Plan;
(h) The selection of General Counsel, Treasurer and Auditor; (i) The amending of this Joint Exercise of Powers Agreement; and (j) Termination of the CCA Program.

3.3.4. Operations Board approval shall be required for the following actions, including but not limited to:
(a) The approval of Authority contracts and agreements, except as provided by Section 3.4; and
(b) Approval of Authority operating policies and other matters necessary to ensure successful program operations.

3.3.5. Joint approval of the Policy and Operations Boards shall be required for the initiation or resolution of claims and litigation where the Authority will be the defendant, plaintiff, petitioner, respondent, cross complainant or cross petitioner, or intervenor; provided, however, that the Chief Executive Officer or General Counsel, on behalf of the Authority, may 79 of 193
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intervene in, become a party to, or file comments with respect to any proceeding pending at the California Public Utilities Commission, the Federal Energy Regulatory Commission, or any other administrative authority, without approval of the Boards as long as such action is consistent with any adopted Board policies.

3.4. Chief Executive Officer. The Authority shall have a Chief Executive Officer (“CEO”). The Operations Board shall present nomination(s) of qualified candidates to the Policy Board. The Policy Board shall make the selection and appointment of the CEO who will be an employee of the Authority and serve at will and at the pleasure of the Policy Board.

The CEO shall be responsible for the day-to-day operation and management of the Authority and the CCA Program. The CEO may exercise all powers of the Authority, including the power to hire, discipline and terminate employees as well as the power to approve any agreement if the total amount payable under the agreement falls within the Authority’s fiscal policies to be set by the Policy Board, except the powers specifically set forth in Section 3.3 or those powers which by law must be exercised by the Board(s) of Directors. The CEO shall report to the Policy Board on matters related to strategic planning and goal setting, passage of Authority budget and customer rates, and large capital expenditures outside the typical power procurement required to provide electrical service. The CEO shall report to the Operations Board on matters related to Authority policy and the provision of electrical service to customers in the region, focusing on the routine, day-to-day operations of the Authority. It shall be the responsibility of the CEO to keep both Board(s) appropriately informed and engaged in the discussions and actions of each to ensure cooperation and unity within the Authority.

3.5. Commissions, Boards, and Committees. The Boards may establish any advisory committees they deem appropriate to assist in carrying out the CCA Program, other energy programs, and the provisions of this Agreement which shall comply with the 80 of 193
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requirements of the Ralph M. Brown Act. The Boards may establish rules, regulations, policies, bylaws or procedures to govern any such commissions, boards, or committees if the Board(s) deem it appropriate to appoint such commissions, boards or committees, and shall determine whether members shall be compensated or entitled to reimbursement for expenses.

3.6. Director Compensation. Directors shall serve without compensation from the Authority. However, Directors may be compensated by their respective appointing authorities. The Boards, however, may adopt by resolution a policy relating to the reimbursement by the Authority of expenses incurred by their respective Directors.

3.7. Voting. Except as provided in Section 3.7.1 below, actions of the Boards shall require the affirmative vote of a majority of Directors present at the meeting.

3.7.1. Special Voting Requirements for Certain Matters. (a) Two-Thirds Voting Approval Requirements Relating to Sections 6.2 and 7.4. Action of the Board on the matters set forth in Section 6.2 (involuntary termination of a Party), or Section 7.4 (amendment of this Agreement) shall require the affirmative vote of at least two-thirds of Directors present. (b) Seventy-Five Percent Special Voting Requirements for Eminent Domain and Contributions or Pledge of Assets.
i. A decision to exercise the power of eminent domain on behalf of the Authority to acquire any property interest other than an easement, right-of-way, or temporary construction easement shall require a vote of at least 75% of all Directors present. ii. The imposition on any Party of any obligation to make contributions or pledge assets as a condition of continued participation in the CCA Program shall require a vote of at least 81 of 193
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75% of all Directors and the approval of the governing boards of the Parties who are being asked to make such contribution or pledge.
iii. For purposes of this section, “imposition on any Party of any obligation to make contributions or pledge assets as a condition of continued participation in the CCA Program” does not include any obligations of a withdrawing or terminated party imposed under Section 6.3.

3.8. Meetings and Special Meetings of the Board. The Policy Board shall hold up to three regular meetings per year, with the option for additional or special meetings as determined by the Chief Executive Officer or Chair of the Policy Board after consultation with the Chief Executive Officer. The Operations Board shall hold at least eight meetings per year, with the option for additional or special meetings. The date, hour and place of each regular meeting shall be fixed by resolution or ordinance of the Board. Regular meetings may be adjourned to another meeting time. Special and Emergency Meetings of the Boards may be called in accordance with the provisions of California Government Code Sections 54956 and 54956.5. Directors may participate in meetings telephonically, with full voting rights, only to the extent permitted by law. All meetings shall be conducted in accordance with the provisions of the Ralph M. Brown Act (California Government Code Sections 54950 et seq.).

3.9. Selection of Board Officers.

3.9.1. Policy Board Chair and Vice Chair. The Policy Board shall select, from among themselves, a Chair, who shall be the presiding officer of all Policy Board meetings, and a Vice Chair, who shall serve in the absence of the Chair. The Policy Board Chair and Vice Chair shall act as the overall Chair and Vice Chair for Central Coast Community Energy. The term of office of the Chair and Vice Chair shall continue 82 of 193
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for one year, but there shall be no limit on the number of terms held by either the Chair or Vice Chair. The office of either the Chair or Vice Chair shall be declared vacant and a new selection shall be made if:
(a) the person serving dies, resigns, is no longer holding a qualifying public office, or the Party that the person represents removes the person as its representative on the Board; or
(b) the Party that he or she represents withdraws from the Authority pursuant to the provisions of this Agreement.

3.9.2. Operations Board Chair and Vice Chair. The Operations Board shall select, from among themselves, a Chair, who shall be the presiding officer of all Operations Board meetings, and a Vice Chair, who shall serve in the absence of the Chair. The term of office of the Chair and Vice Chair shall continue for one year, but there shall be no limit on the number of terms held by either the Chair or Vice Chair. The office of either the Chair or Vice Chair shall be declared vacant and a new selection shall be made if:
(a) the person serving dies, resigns, or is no longer the senior executive of the Party that the person represents or;
(b) the Party that he or she represents withdraws from the Authority pursuant to the provisions of this Agreement.

3.9.3. Secretary. Each Board shall appoint a Secretary, who need not be a member of the Board, who shall be responsible for keeping the minutes of all meetings of each Board and all other official records of the Authority.

If the Secretary appointed is an employee of the Authority, that employee may serve as Secretary to both Boards.

3.9.4. The Policy Board shall appoint a qualified person to act as the Treasurer and a qualified person to act as the Auditor, neither of whom needs to be a 83 of 193
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member of the Board. If the Board so designates, and in accordance with the provisions of applicable law, a qualified person may hold both the office of Treasurer and the office of Auditor of the Authority. Unless otherwise exempted from such requirement, the Authority shall cause an independent audit to be made by a certified public accountant, or public accountant, in compliance with Section 6505 of the Act. The Treasurer shall report directly to the Policy Board and shall comply with the requirements of treasurers of incorporated municipalities. The Board may transfer the responsibilities of Treasurer to any person or entity as the law may provide at the time. The duties and obligations of the Treasurer are further specified in Article 5.

3.10. Administrative Services Provider. The Board(s) may appoint one or more administrative services providers to serve as the Authority’s agent for planning, implementing, operating and administering the CCA Program, and any other program approved by the Board, in accordance with the provisions of an Administrative Services Agreement. The appointed administrative services provider may be one of the Parties. An Administrative Services Agreement shall set forth the terms and conditions by which the appointed administrative services provider shall perform or cause to be performed all tasks necessary for planning, implementing, operating and administering the CCA Program and other approved programs. The Administrative Services Agreement shall set forth the term of the Agreement and the circumstances under which the Administrative Services Agreement may be terminated by the Authority. This section shall not in any way be construed to limit the discretion of the Authority to hire its own employees to administer the CCA Program or any other program. The Administrative Services Provider shall be either an employee or a contractor of the Authority unless a member agency is providing the service.
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ARTICLE 4: IMPLEMENTATION ACTION AND AUTHORITY DOCUMENTS

4.1. Preliminary Implementation of the CCA Program.

4.1.1. Enabling Ordinance. To be eligible to participate in the CCA Program, each Party must adopt an ordinance in accordance with Public Utilities Code Section 366.2(c)(12) for the purpose of specifying that the Party intends to implement a CCA Program by and through its participation in the Authority.

4.1.2. Implementation Plan. The Policy Board shall cause to be prepared an Implementation Plan meeting the requirements of Public Utilities Code Section 366.2 and any applicable Public Utilities Commission regulations as soon after the Effective Date as reasonably practicable. The Implementation Plan shall not be filed with the Public Utilities Commission until it is approved by the Policy Board in the manner provided by Section 3.7.

4.1.3. Termination of CCA Program. Nothing contained in this Article or this Agreement shall be construed to limit the discretion of the Authority to terminate the implementation or operation of the CCA Program at any time in accordance with any applicable requirements of state law.

4.2. Authority Documents. The Parties acknowledge and agree that the affairs of the Authority will be implemented through various documents duly adopted by the Board(s) through resolution, including but not limited to the CCCE Implementation Plan and Operating Policies. The Parties agree to abide by and comply with the terms and conditions of all such documents that may be adopted by the Board(s), subject to the Parties’ right to withdraw from the Authority as described in Article 6. 85 of 193
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ARTICLE 5: FINANCIAL PROVISIONS

5.1. Fiscal Year. The Authority’s fiscal year shall be 12 months commencing April 1 or the date selected by the Authority. The fiscal year may be changed by Policy Board resolution.

5.2. Depository.

5.2.1. All funds of the Authority shall be held in separate accounts in the name of the Authority and not commingled with funds of any Party or any other person or entity.

5.2.2. All funds of the Authority shall be strictly and separately accounted for, and regular reports shall be rendered of all receipts and disbursements, at least quarterly during the fiscal year. The books and records of the Authority shall be open to inspection by the Parties at all reasonable times. The Board(s) shall contract with a certified public accountant or public accountant to make an annual audit of the accounts and records of the Authority, which shall be conducted in accordance with the requirements of Section 6505 of the Act.

5.2.3. All expenditures shall be made in accordance with the approved budget and upon the approval of any officer so authorized by the Board(s) in accordance with its Operating Rules and Regulations. The Treasurer shall draw checks or warrants or make payments by other means for claims or disbursements not within an applicable budget only upon the prior approval of the Board(s).

5.3. Budget and Recovery of Costs.

5.3.1. Budget. The initial budget shall be approved by the Policy Board. The Board may revise the budget from time-to-time as may be reasonably necessary to address contingencies and unexpected expenses. All 86 of 193
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subsequent budgets of the Authority shall be approved by the Policy Board in accordance with the Operating Rules and Regulations.

5.3.2. Funding of Initial Costs. The County of Santa Cruz has funded certain activities necessary to implement the CCA Program. If the CCA Program becomes operational, these Initial Costs paid by the County of Santa Cruz shall be included in the customer charges for electric services as provided by Section 5.3.3 to the extent permitted by law, and the County of Santa Cruz shall be reimbursed from the payment of such charges by customers of the Authority. Prior to such reimbursement, the County of Santa Cruz shall provide such documentation of costs paid as the Board may request.

The Authority may establish a reasonable time-period over which such costs are recovered. In the event, that the CCA Program does not become operational, the County of Santa Cruz shall not be entitled to any reimbursement of the Initial Costs it has paid from the Authority or any Party.

5.3.3. CCA Program Costs. The Parties desire that all costs incurred by the Authority that are directly or indirectly attributable to the provision of electric, conservation, efficiency, incentives, financing, or other services provided under the CCA Program, including but not limited to the establishment and maintenance of various reserves and performance funds and administrative, accounting, legal, consulting, and other similar costs, shall be recovered through charges to CCA customers receiving such electric services, or from revenues from grants or other third-party sources.

ARTICLE 6: WITHDRAWAL

6.1. Withdrawal.

6.1.1. Right to Withdraw. A Party may withdraw its participation in the CCA 87 of 193
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Program, effective as of the beginning of the Authority’s fiscal year, by giving no less than 6 months advance written notice of its election to do so, which notice shall be given to the Authority and each Party.

Withdrawal of a Party shall require an affirmative vote of the Party’s governing board.

6.1.2. Right to Withdraw After Amendment. Notwithstanding Section 6.1.1, a Party may withdraw its membership in the Authority following an amendment to this Agreement adopted by the Policy Board which the Party’s Director voted against provided such notice is given in writing within thirty (30) days following the date of the vote. Withdrawal of a Party shall require an affirmative vote of the Party’s governing board and shall not be subject to the six-month advanced notice provided in Section 6.1.1. In the event of such withdrawal, the Party shall be subject to the provisions of Section 6.3.

6.1.3. The Right to Withdraw Prior to Program Launch. After receiving bids from power suppliers, the Authority must provide to the Parties the report from the electrical utility consultant retained by the Authority that compares the total estimated electrical rates that the Authority will be charging to customers as well as the estimated greenhouse gas emissions rate and the amount of estimated renewable energy used with that of the incumbent utility. If the report provides that the Authority is unable to provide total electrical rates, as part of its baseline offering, to the customers that are equal to or lower than the incumbent utility or to provide power in a manner that has a lower greenhouse gas emissions rate or uses more renewable energy than the incumbent utility, a Party may, immediately after an affirmative vote of the Party’s governing board, withdraw its membership in the Authority without any financial obligation, except those financial obligations incurred through the Party’s share of the credit guarantee described in 5.3.4, as long as the Party 88 of 193
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provides written notice of its intent to withdraw to the Authority Board no more than fifteen business days after receiving the report. Costs incurred prior to withdrawal will be calculated as a pro-rata share of start-up costs expended to the date of the Party’s withdrawal, and it shall be the responsibility of the withdrawing Party to pay its share of said costs if they have a material/adverse impact on remaining Authority members or ratepayers.

6.1.4. Continuing Financial Obligation; Further Assurances. Except as provided by Section 6.1.3, a Party that withdraws its participation in the CCA Program may be subject to certain continuing financial obligations, as described in Section 6.3. Each withdrawing Party and the Authority shall execute and deliver all further instruments and documents and take any further action that may be reasonably necessary, as determined by the Board, to effectuate the orderly withdrawal of such Party from participation in the CCA Program.

6.2. Involuntary Termination of a Party. Participation of a Party in the CCA program may be terminated for material non-compliance with provisions of this Agreement or any other agreement relating to the Party’s participation in the CCA Program upon a vote of the Policy Board as provided in Section 3.7.1. Prior to any vote to terminate participation with respect to a Party, written notice of the proposed termination and the reason(s) for such termination shall be delivered to the Party whose termination is proposed at least 30 days prior to the regular Board meeting at which such matter shall first be discussed as an agenda item. The written notice of proposed termination shall specify the particular provisions of this Agreement or other agreement that the Party has allegedly violated.

6.3. Continuing Financial Obligations: Refund. Except as provided by Section 6.1.3, upon a withdrawal or involuntary termination of a Party, the Party shall remain responsible for any claims, demands, damages, or other financial obligations arising from the Party membership or participation in the CCA Program through the date of its withdrawal or involuntary termination, it being agreed that the Party shall not be responsible for any financial obligations arising after the date of the Party’s withdrawal or involuntary termination. Claims, demands, damages, or other financial obligations for which a withdrawing or terminated Party may remain liable include, but are not limited to, losses from the resale of power contracted for by the Authority to serve the Party’s load. With respect to such financial obligations, upon notice by a Party that it wishes to withdraw from the CCA Program, the Authority shall notify the Party of the minimum waiting period under which the Party would have no costs for withdrawal if the Party agrees to stay in the CCA Program for such period. The waiting period will be set to the minimum duration such that there are no costs transferred to remaining ratepayers. If the Party elects to withdraw before the end of the minimum waiting period, the charge for exiting shall be set at a dollar amount that would offset actual costs to the remaining ratepayers and may not include punitive charges that exceed actual costs. In addition, such Party shall also be responsible for any costs or obligations associated with the Party’s participation in any program in accordance with the provisions of any agreements relating to such program provided such costs or obligations were incurred prior to the withdrawal of the Party. The Authority may withhold funds otherwise owing to the Party or may require the Party to deposit sufficient funds with the Authority, as reasonably determined by the Authority and approved by a vote of the Policy Board, to cover the Party’s financial obligations for the costs described above. Any amount of the Party’s funds held on deposit with the Authority above that which is required to pay any financial obligations shall be returned to the Party. The liability of any Party under this section 6.3 is subject and subordinate to the provisions of Section 2.2, and nothing in this section 6.3 shall reduce, impair, or eliminate any immunity from liability provided by Section 2.2. 90 of 193
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6.4. Mutual Termination. This Agreement may be terminated by mutual agreement of all the Parties; provided, however, the foregoing shall not be construed as limiting the rights of a Party to withdraw its participation in the CCA Program, as described in Section 6.1.

6.5. Disposition of Property upon Termination of Authority. Upon termination of this Agreement, any surplus money or assets in possession of the Authority for use under this Agreement, after payment of all liabilities, costs, expenses, and charges incurred under this Agreement and under any program documents, shall be returned to the then-existing Parties in proportion to the contributions made by each.

ARTICLE 7: MISCELLANEOUS PROVISIONS

7.1. Dispute Resolution. The Parties and the Authority shall make reasonable efforts to informally settle all disputes arising out of or in connection with this Agreement. Should such informal efforts to settle a dispute, after reasonable efforts, fail, the dispute shall be mediated in accordance with policies and procedures established by the Authority. The costs of any such mediation shall be shared equally among the Parties participating in the mediation.

7.3. Indemnification of Parties. The Authority shall acquire such insurance coverage as is necessary to protect the interests of the Authority and the Parties. The Authority shall defend, indemnify, and hold harmless the Parties and each of their respective Boards of Supervisors or City Councils, officers, agents and employees, from any and all claims, losses, damages, costs, injuries, and liabilities of every kind arising directly or indirectly from the conduct, activities, operations, acts, and omissions of the Authority under this Agreement.

7.4. Amendment of this Agreement. This Agreement may not be amended except by a written amendment approved by a vote of Policy Board members as provided in Section

3.7.1. The Authority shall provide written notice to all Parties of proposed amendments to this Agreement, including the effective date of such amendments, at least 30 days prior to the date upon which the Board votes on such amendments.

7.5. Assignment. Except as otherwise expressly provided in this Agreement, the rights and duties of the Parties may not be assigned or delegated without the advance written consent of all of the other Parties, and any attempt to assign or delegate such rights or duties in contravention of this Section 7.5 shall be null and void. This Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of the Parties.

This Section 7.5 does not prohibit a Party from entering into an independent agreement with another agency, person, or entity regarding the financing of that Party’s contributions to the Authority, or the disposition of proceeds which that Party receives under this Agreement, so long as such independent agreement does not affect, or purport to affect, the rights and duties of the Authority or the Parties under this Agreement.

7.6. Severability. If one or more clauses, sentences, paragraphs or provisions of this Agreement shall be held to be unlawful, invalid or unenforceable, it is hereby agreed by the Parties, that the remainder of the Agreement shall not be affected thereby. Such clauses, sentences, paragraphs or provision shall be deemed reformed so as to be lawful, valid and enforced to the maximum extent possible.

7.7. Further Assurances. Each Party agrees to execute and deliver all further 92 of 193
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instruments and documents and take any further action that may be reasonably necessary, to effectuate the purposes and intent of this Agreement.

7.8. Execution by Counterparts. This Agreement may be executed in any number of counterparts, and upon execution by all Parties, each executed counterpart shall have the same force and effect as an original instrument and as if all Parties had signed the same instrument. 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 hereto but having attached to it one or more signature pages.

7.9. Parties to be Served Notice. Any notice authorized or required to be given pursuant to this Agreement shall be validly given if served in writing either personally, by deposit in the United States mail, first class postage prepaid with return receipt requested, or by a recognized courier service. Notices given (a) personally or by courier service shall be conclusively deemed received at the time of delivery and receipt and (b) by mail shall be conclusively deemed given 48 hours after the deposit thereof (excluding Saturdays, Sundays and holidays) if the sender receives the return receipt. All notices shall be addressed to the office of the clerk or secretary of the Authority or Party, as the case may be, or such other person designated in writing by the Authority or Party.

Notices given to one Party shall be copied to all other Parties. Notices given to the Authority shall be copied to all Parties.
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Exhibit A
Definitions
“Act” means the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.)
“Administrative Services Agreement” means an agreement or agreements entered into after the Effective Date by the Authority with an entity that will perform tasks necessary for planning, implementing, operating and administering the CCA Program or any other energy programs adopted by the Authority.
“Agreement” means this Joint Powers Agreement.
“Annual Energy Use” has the meaning given in Section 3.7.1. “Authority” means Central Coast Community Energy.
“Authority Document(s)” means document(s) duly adopted by one or both Boards by resolution or motion implementing the powers, functions, and activities of the Authority, including but not limited to the Operating Rules and Regulations, the annual budget, and plans and policies.
“Board” means the Policy Board of Directors of the Authority and/or the Operations Board of Directors of the Authority unless one or the other is specified in this Agreement. “CCA” or “Community Choice Aggregation” means an electric service option available to cities and counties pursuant to Public Utilities Code Section 366.2. “CCA Program” means the Authority’s program relating to CCA that is principally described in this Agreement.
“Director” means a member of the Policy Board of Directors or Operations Board of Directors representing a Party.
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“Effective Date” means the date that this Agreement is executed by at least three Initial Participants from the Counties of Monterey, Santa Cruz, and San Benito and the municipalities within those counties, as further described in Section 2.1. “Implementation Plan” means the plan generally described in Section 4.1.2 of this Agreement that is required under Public Utilities Code Section 366.2 to be filed with the California Public Utilities Commission for the purpose of describing a proposed CCA Program.
“Initial Costs” means all costs incurred by the County of Santa Cruz and/or Authority relating to the establishment and initial operation of the Authority, such as the hiring of a Chief Executive Officer and any administrative staff, and any required accounting, administrative, technical, or legal services in support of the Authority’s initial activities or in support of the negotiation, preparation, and approval of one or more Administrative Services Agreements.
“Initial Participants” means those initial founding JPA members whose jurisdictions pass a CCA ordinance, whose Board seats will be allocated on a one jurisdiction, one seat basis (in addition to one seat for San Benito County) until such time as the number of member jurisdictions exceeds eleven, as described in Section 3.1.4. “Operating Rules and Regulations” means the rules, regulations, policies, bylaws and procedures governing the operation of the Authority.
“Operations Board” means the board composed of City Managers and CAOs representing their respective jurisdictions as provided in section 3.1.4 who will provide oversight and support to the Chief Executive Officer on matters pertaining to the provision of electrical service to customers in the region, focusing on the routine, day-to-day operations of the Authority, as further set forth in section 3.3. 95 of 193
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“Parties” means, collectively, the signatories to this Agreement that have satisfied the conditions in Sections 2.1 or 4.1.1 such that it is considered a member of the Authority. “Party” means singularly, a signatory to this Agreement that has satisfied the conditions in Sections 2.1 or 4.1.1 such that it is considered a member of the Authority. “Policy Board” means the board composed of elected officials representing their respective jurisdictions as provided in section 3.1.4 who will provide guidance/approval in the areas of strategic planning and goal setting, passage of Authority budget and customer rates, large capital expenditures outside the typical power procurement required to provide electrical service, and such other functions as set forth in section 3.3. 96 of 193
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Exhibit B
Central Coast Community Energy of Monterey, Santa Cruz, San Benito, and Santa Barbara Counties, and Certain Cities in San Luis Obispo County List of Parties
County of Santa Cruz
City of Santa Cruz
City of Watsonville
City of Capitola
City of Scotts Valley
County of Monterey
City of Salinas
City of Monterey
City of Pacific Grove
City of Carmel
City of Seaside
City of Marina
City of Sand City
City of Soledad
City of Greenfield
City of Gonzales
City of Del Rey Oaks
County of San Benito
City of Hollister
City of San Juan Bautista
City of Morro Bay
City of San Luis Obispo
City of Paso Robles
City of Pismo Beach
City of Grover Beach
City of Arroyo Grande
County of Santa Barbara
City of Santa Maria
City of Solvang
City of Guadalupe
City of Goleta
City of Carpinteria
City of Buellton
City of Atascadero
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County of Santa Cruz
City of Santa Cruz
City of Watsonville
City of Capitola
City of Scotts Valley
County of Monterey
City of Salinas
City of Monterey
City of Pacific Grove
City of Carmel
City of Seaside
City of Marina
City of Sand City
City of Soledad
City of Greenfield
City of Gonzales
List of Parties
City of Del Rey Oaks
County of San Benito
City of Hollister
City of San Juan Bautista
City of Morro Bay
City of San Luis Obispo
City of Paso Robles
City of Pismo Beach
City of Grover Beach
City of Arroyo Grande
County of Santa Barbara
City of Santa Maria
City of Solvang
City of Guadalupe
City of Goleta
City of Carpinteria
City of Buellton
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Regional Allocation
Board seats in Central Coast Community Energy will be allocated as follows:
i. One seat for Santa Cruz County;
ii. One seat for Monterey County;
iii. One seat for San Benito County;
iv. One Seat for Santa Barbara County;
v. One seat for the City of Santa Cruz;
vi. One seat for the City of Salinas;
vii. One seat for the City of Watsonville;
viii. One seat for the City of Santa Maria;
ix. One shared seat for remaining Santa Cruz cities including Capitola and Scotts Valley selected by the City Selection Committee; x. One shared seat for Monterey Peninsula cities including Monterey, Pacific Grove, and Carmel selected by the City Selection Committee; xi. One shared seat for Monterey Coastal cities including Marina, Seaside, Sand City, and Del Rey Oaks selected by the City Selection Committee; xii. One shared seat for Salinas Valley cities including Greenfield, Soledad, Gonzales selected by the City Selection Committee;
xiii. One shared seat for San Benito County cities including Hollister and San Juan Bautista selected by the City Selection Committee; and
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xiv. One shared seat for the Cities of San Luis Obispo and, Morro Bay, and Paso Robles selected by agreement or the City Selection Committee; and xiv.xv. One shared seat for the cities of Paso Robles and Atascadero selected by agreement or the City Selection Committee; and
xv.xvi. One shared seat for the Cities of Pismo Beach, Grover Beach, and Arroyo Grande selected by agreement or the City Selection Committee. xvi.xvii. One shared seat for the Cities of Guadalupe, Solvang, and Buellton selected by agreement or the City Selection Committee.
xvii.xviii. One shared seat for the Cities of Goleta, and Carpinteria selected by agreement or the City Selection Committee.
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[SIGNATURE PAGES TO BE INSERTED]
[SIGNATURE PAGES TO BE INSERTED]
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FIFTH AMENDMENT TO THE CENTRAL COAST COMMUNITY ENERGY JOINT

EXERCISE OF POWERS AGREEMENT
This Fifth Amendment amends the Central Coast Community Energy Joint Exercise of Powers Agreement (“Agreement”) as follows:

WHEREAS, Central Coast Community Energy (the “Authority”) was originally formed as Monterey Bay Community Power Authority on February 21, 2017, pursuant to a Joint Exercise of Powers Agreement (“Agreement”) to study, promote, develop, conduct, operate, and manage energy programs in the Tri-County region of Santa Cruz, Monterey, and San Benito Counties; and
WHEREAS, on December 5, 2018, the Policy Board approved Resolution No. PB-2018-07 approving Amendment No. 1 to the Agreement to include the Cities of Morro Bay and San Luis Obispo; and
WHEREAS, on December 4, 2019, the Policy Board approved Resolution No. PB-2019-04 approving Amendment No. 2 to the Agreement to include the County of Santa Barbara and the Cities of Del Rey Oaks, Paso Robles, Pismo Beach, Grover Beach, Arroyo Grande, Santa Maria, Guadalupe, Goleta, Carpinteria, and Solvang; and
WHEREAS, on June 3, 2020, the Policy Board approved Resolution No. PB-2020-02 approving Amendment No. 3 to the Agreement to change the name of the Authority, effective September 4, 2020, to Central Coast Community Energy in order to better reflect its expanded service territory; and
WHEREAS, on September 4, 2020, the Policy Board approved Resolution No. PB-2020-05 approving Amendment No. 4 to the Agreement to include the City of Buellton; and WHEREAS, the City of Atascadero has adopted an ordinance to form a community choice aggregation program and adopted a resolution requesting to become a party to the Agreement and participate in the Authority’s community choice aggregation program; and WHEREAS, the request from the City of Atascadero to join the Authority requires an amendment to the Agreement pursuant to Section 2.4.14 of the Agreement; and, WHEREAS, Section 7.4 of the Agreement authorizes the Policy Board by a two-thirds vote to amend the Agreement after providing notice to all parties to the Agreement of the amendment and its effective date, which notice has been duly given; and WHEREAS, the Authority wishes to amend the agreement to add the City of Atascadero as a party.

NOW, THEREFORE, the Agreement is amended as follows:
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1. Exhibit B, List of Parties to the Agreement is hereby amended to add the City of Atascadero.

2. Exhibit C, Regional Allocation, to the Agreement is hereby amended at subsection xiv to read:
“One shared seat for the Cities of San Luis Obispo and Morro Bay selected by agreement or the City Selection Committee; and”.

3. Exhibit C, Regional Allocation, to the Agreement is hereby amended at subsection xv to read:
“One shared seat for the Cities of Paso Robles and Atascadero selected by agreement or the City Selection Committee; and”, with subsequent subsections incremented appropriately.

4. This Fifth Amendment shall be effective September 23, 2022, following the approval by the Policy Board of Directors in accordance with Section 7.4 of this Agreement on September 22, 2022, through Resolution No. PB-2022-02.
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JOINT EXERCISE OF POWERS AGREEMENT RELATING TO AND CREATING

B. In 2006, the State Legislature adopted AB 32, the Global Warming Solutions Act, which mandates a reduction in greenhouse gas emissions in 2020 to 1990 levels.

The California Air Resources Board is promulgating regulations to implement AB 104 of 193
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32 which will require local governments to develop programs to reduce greenhouse gas emissions.

D. It is the intent of this Agreement to promote the development and use of a wide range of renewable energy sources and energy programs, including but not limited to solar, wind, and geothermal energy production. The purchase of renewable power sources will be the desired approach to decrease regional greenhouse gas emissions and accelerate the State’s transition to clean power resources to the extent feasible.
a. It is further desired to establish a long-term energy portfolio that prioritizes the use and development of State, local and regional renewable resources and carbon free resources.
b. In compliance with State law and in alignment with the Authority’s desire 105 of 193
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to stimulate the development of renewable power, the Authority shall draft an Integrated Resource Plan that includes a range of regional renewable development potential in the California Central Coast Region and plans to incorporate local power into its energy portfolio as technically and economically feasible.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions hereinafter set forth, it is agreed by and among the Parties as follows:

ARTICLE 1: DEFINITIONS AND EXHIBITS

1.1. Definitions. Capitalized terms used in the Agreement shall have the meanings specified in Exhibit A unless the context requires otherwise.

1.2. Documents Included. This Agreement consists of this document and the following exhibits, all of which are hereby incorporated into this Agreement.

Exhibit A: Definitions
Exhibit B: List of the Parties
Exhibit C: Regional Allocations
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ARTICLE 2: FORMATION OF CENTRAL COAST COMMUNITY ENERGY

2.3. Purpose. The purpose of this Agreement is to establish an independent public Authority in order to exercise powers common to each Party to study, promote, develop, conduct, operate, and manage energy, energy efficiency and conservation, and other energy-related programs, and to exercise all other powers necessary and incidental to accomplishing this purpose. Without limiting the generality of the foregoing, the Parties 107 of 193
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intend for this Agreement to be used as a contractual mechanism by which the Parties are authorized to participate in the CCA Program, as further described in Section 4.1. The Parties intend that other agreements shall define the terms and conditions associated with the implementation of the CCA Program and any other energy programs approved by the Authority.

2.4.1. to make and enter into contracts;

2.4.2. to employ agents and employees, including but not limited to a Chief Executive Officer;

2.4.3. to acquire, contract, manage, maintain, and operate any buildings, infrastructure, works, or improvements;

2.4.5. to lease any property;

2.4.6. to sue and be sued in its own name;

2.4.7. to incur debts, liabilities, and obligations, including but not limited to loans from private lending sources pursuant to its temporary borrowing 108 of 193
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powers such as Government Code Sections 53850 et seq. and authority under the Act;

2.4.9. to issue revenue bonds and other forms of indebtedness;

2.4.10. to apply for, accept, and receive all licenses, permits, grants, loans or other aids from any federal, state, or local public agency;

2.4.11. to submit documentation and notices, register, and comply with orders, tariffs and agreements for the establishment and implementation of the CCA Program and other energy programs;

2.4.12. to adopt Operating Rules and Regulations;

2.5. Limitation on Powers. As required by Government Code Section 6509, the power of the Authority is subject to the restrictions upon the manner of exercising power possessed by the City of Santa Cruz and any other restrictions on exercising the powers of the authority that may be adopted by the board.
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1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 7 2.6. Compliance with Local Zoning and Building Laws and CEQA. Unless state or federal law provides otherwise, any facilities, buildings or structures located, constructed, or caused to be constructed by the Authority within the territory of the Authority shall comply with the General Plan, zoning and building laws of the local jurisdiction within which the facilities, buildings or structures are constructed and comply with the California Environmental Quality Act (“CEQA”).

ARTICLE 3: GOVERNANCE AND INTERNAL ORGANIZATION

3.1. Boards of Directors. The governing bodies of the Authority shall consist of a Policy Board of Directors (“Policy Board”) and an Operations Board of Directors (“Operations Board”).

3.1.2. Policy Board Directors must be elected members of the Board of Supervisors or elected members of the City or Town Council of the municipality that is the signatory to this Agreement. Jurisdictions may appoint an alternate to serve in the absence of its Director on the Policy Board. Alternates for the Policy Board must be members of the Board of Supervisors or members of the governing board of the municipality that is the signatory to this Agreement.
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1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 8 3.1.3. Operations Board Directors must be the senior executive/County Administrative Officer of any County that is the signatory to this Agreement, or senior executive/City Manager from any municipality that is the signatory to this Agreement. Jurisdictions may appoint an alternate to serve in the absence of its Director on the Operations Board. Alternates for the Operations Board must be administrative managers of the County or administrative managers of the governing board of the municipality that is the signatory to this Agreement.

Notwithstanding the above, the County of San Benito shall be allotted one seat.

3.1.5. Shared board seats, as set forth in Exhibit C, Regional Allocation shall have a term of two years and will be determined either by agreement among the parties sharing the seat or through the City Selection Committee in the respective County. Following appointment, either by agreement or by the City Selection Committee, Directors may be reappointed and serve multiple terms. In the event the addition of new parties requires that an established board seat transition to a shared seat or that a shared seat expand to include new parties, the sitting Director 111 of 193
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3.2. Quorum. A majority of the appointed Directors shall constitute a quorum, except that less than a quorum may adjourn in accordance with law.

3.3.3. Policy Board approval shall be required for any of the following actions, including but not limited to:
(a) The issuance of bonds, major capital expenditures, or any other financing even if program revenues are expected to pay for such financing;
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1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 10 (b) The appointment or removal of officers described in Section 3.9, subject to Section 3.9.3;
(c) The appointment and termination of the Chief Executive Officer; (d) The adoption of the Annual Budget;
(e) The adoption of an ordinance;
(f) The setting of rates for power sold by the Authority and the setting of charges for any other category of service provided by the Authority;
(g) The adoption of the Implementation Plan;
(h) The selection of General Counsel, Treasurer and Auditor; (i) The amending of this Joint Exercise of Powers Agreement; and (j) Termination of the CCA Program.

3.3.5. Joint approval of the Policy and Operations Boards shall be required for the initiation or resolution of claims and litigation where the Authority will be the defendant, plaintiff, petitioner, respondent, cross complainant or cross petitioner, or intervenor; provided, however, that the Chief Executive Officer or General Counsel, on behalf of the Authority, may 113 of 193
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3.5. Commissions, Boards, and Committees. The Boards may establish any advisory committees they deem appropriate to assist in carrying out the CCA Program, other energy programs, and the provisions of this Agreement which shall comply with the 114 of 193
1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 12 requirements of the Ralph M. Brown Act. The Boards may establish rules, regulations, policies, bylaws or procedures to govern any such commissions, boards, or committees if the Board(s) deem it appropriate to appoint such commissions, boards or committees, and shall determine whether members shall be compensated or entitled to reimbursement for expenses.

3.7. Voting. Except as provided in Section 3.7.1 below, actions of the Boards shall require the affirmative vote of a majority of Directors present at the meeting.

3.7.1. Special Voting Requirements for Certain Matters. (a) Two-Thirds Voting Approval Requirements Relating to Sections 6.2 and 7.4. Action of the Board on the matters set forth in Section 6.2 (involuntary termination of a Party), or Section 7.4 (amendment of this Agreement) shall require the affirmative vote of at least two-thirds of Directors present. (b) Seventy-Five Percent Special Voting Requirements for Eminent Domain and Contributions or Pledge of Assets.
i. A decision to exercise the power of eminent domain on behalf of the Authority to acquire any property interest other than an easement, right-of-way, or temporary construction easement shall require a vote of at least 75% of all Directors present. ii. The imposition on any Party of any obligation to make contributions or pledge assets as a condition of continued participation in the CCA Program shall require a vote of at least 115 of 193
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iii. For purposes of this section, “imposition on any Party of any obligation to make contributions or pledge assets as a condition of continued participation in the CCA Program” does not include any obligations of a withdrawing or terminated party imposed under Section 6.3.

3.9. Selection of Board Officers.

3.9.1. Policy Board Chair and Vice Chair. The Policy Board shall select, from among themselves, a Chair, who shall be the presiding officer of all Policy Board meetings, and a Vice Chair, who shall serve in the absence of the Chair. The Policy Board Chair and Vice Chair shall act as the overall Chair and Vice Chair for Central Coast Community Energy. The term of office of the Chair and Vice Chair shall continue 116 of 193
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(a) the person serving dies, resigns, is no longer holding a qualifying public office, or the Party that the person represents removes the person as its representative on the Board; or
(b) the Party that he or she represents withdraws from the Authority pursuant to the provisions of this Agreement.

If the Secretary appointed is an employee of the Authority, that employee may serve as Secretary to both Boards.

3.9.4. The Policy Board shall appoint a qualified person to act as the Treasurer and a qualified person to act as the Auditor, neither of whom needs to be a 117 of 193
1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 15 member of the Board. If the Board so designates, and in accordance with the provisions of applicable law, a qualified person may hold both the office of Treasurer and the office of Auditor of the Authority. Unless otherwise exempted from such requirement, the Authority shall cause an independent audit to be made by a certified public accountant, or public accountant, in compliance with Section 6505 of the Act. The Treasurer shall report directly to the Policy Board and shall comply with the requirements of treasurers of incorporated municipalities. The Board may transfer the responsibilities of Treasurer to any person or entity as the law may provide at the time. The duties and obligations of the Treasurer are further specified in Article 5.

3.10. Administrative Services Provider. The Board(s) may appoint one or more administrative services providers to serve as the Authority’s agent for planning, implementing, operating and administering the CCA Program, and any other program approved by the Board, in accordance with the provisions of an Administrative Services Agreement. The appointed administrative services provider may be one of the Parties. An Administrative Services Agreement shall set forth the terms and conditions by which the appointed administrative services provider shall perform or cause to be performed all tasks necessary for planning, implementing, operating and administering the CCA Program and other approved programs. The Administrative Services Agreement shall set forth the term of the Agreement and the circumstances under which the Administrative Services Agreement may be terminated by the Authority. This section shall not in any way be construed to limit the discretion of the Authority to hire its own employees to administer the CCA Program or any other program. The Administrative Services Provider shall be either an employee or a contractor of the Authority unless a member agency is providing the service.
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1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 16 ARTICLE 4: IMPLEMENTATION ACTION AND AUTHORITY DOCUMENTS

4.1. Preliminary Implementation of the CCA Program.

4.2. Authority Documents. The Parties acknowledge and agree that the affairs of the Authority will be implemented through various documents duly adopted by the Board(s) through resolution, including but not limited to the CCCE Implementation Plan and Operating Policies. The Parties agree to abide by and comply with the terms and conditions of all such documents that may be adopted by the Board(s), subject to the Parties’ right to withdraw from the Authority as described in Article 6. 119 of 193
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5.1. Fiscal Year. The Authority’s fiscal year shall be 12 months commencing April 1 or the date selected by the Authority. The fiscal year may be changed by Policy Board resolution.

5.2. Depository.

5.2.1. All funds of the Authority shall be held in separate accounts in the name of the Authority and not commingled with funds of any Party or any other person or entity.

5.3. Budget and Recovery of Costs.

5.3.1. Budget. The initial budget shall be approved by the Policy Board. The Board may revise the budget from time-to-time as may be reasonably necessary to address contingencies and unexpected expenses. All 120 of 193
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ARTICLE 6: WITHDRAWAL

6.1. Withdrawal.

6.1.1. Right to Withdraw. A Party may withdraw its participation in the CCA 121 of 193
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Withdrawal of a Party shall require an affirmative vote of the Party’s governing board.

6.1.3. The Right to Withdraw Prior to Program Launch. After receiving bids from power suppliers, the Authority must provide to the Parties the report from the electrical utility consultant retained by the Authority that compares the total estimated electrical rates that the Authority will be charging to customers as well as the estimated greenhouse gas emissions rate and the amount of estimated renewable energy used with that of the incumbent utility. If the report provides that the Authority is unable to provide total electrical rates, as part of its baseline offering, to the customers that are equal to or lower than the incumbent utility or to provide power in a manner that has a lower greenhouse gas emissions rate or uses more renewable energy than the incumbent utility, a Party may, immediately after an affirmative vote of the Party’s governing board, withdraw its membership in the Authority without any financial obligation, except those financial obligations incurred through the Party’s share of the credit guarantee described in 5.3.4, as long as the Party 122 of 193
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The Party subject to possible termination shall have the opportunity at the next regular Board meeting to respond to any reasons and allegations that may be cited as a basis for termination prior to a vote regarding termination. A Party that has had its participation in the CCA Program terminated may be subject to certain continuing liabilities, as described in Section 6.3.
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1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 21 6.3. Continuing Financial Obligations: Refund. Except as provided by Section 6.1.3, upon a withdrawal or involuntary termination of a Party, the Party shall remain responsible for any claims, demands, damages, or other financial obligations arising from the Party membership or participation in the CCA Program through the date of its withdrawal or involuntary termination, it being agreed that the Party shall not be responsible for any financial obligations arising after the date of the Party’s withdrawal or involuntary termination. Claims, demands, damages, or other financial obligations for which a withdrawing or terminated Party may remain liable include, but are not limited to, losses from the resale of power contracted for by the Authority to serve the Party’s load. With respect to such financial obligations, upon notice by a Party that it wishes to withdraw from the CCA Program, the Authority shall notify the Party of the minimum waiting period under which the Party would have no costs for withdrawal if the Party agrees to stay in the CCA Program for such period. The waiting period will be set to the minimum duration such that there are no costs transferred to remaining ratepayers. If the Party elects to withdraw before the end of the minimum waiting period, the charge for exiting shall be set at a dollar amount that would offset actual costs to the remaining ratepayers and may not include punitive charges that exceed actual costs. In addition, such Party shall also be responsible for any costs or obligations associated with the Party’s participation in any program in accordance with the provisions of any agreements relating to such program provided such costs or obligations were incurred prior to the withdrawal of the Party. The Authority may withhold funds otherwise owing to the Party or may require the Party to deposit sufficient funds with the Authority, as reasonably determined by the Authority and approved by a vote of the Policy Board, to cover the Party’s financial obligations for the costs described above. Any amount of the Party’s funds held on deposit with the Authority above that which is required to pay any financial obligations shall be returned to the Party. The liability of any Party under this section 6.3 is subject and subordinate to the provisions of Section 2.2, and nothing in this section 6.3 shall reduce, impair, or eliminate any immunity from liability provided by Section 2.2. 124 of 193
1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 22 6.4. Mutual Termination. This Agreement may be terminated by mutual agreement of all the Parties; provided, however, the foregoing shall not be construed as limiting the rights of a Party to withdraw its participation in the CCA Program, as described in Section 6.1.

ARTICLE 7: MISCELLANEOUS PROVISIONS

7.2. Liability of Directors, Officers, and Employees. The Directors, officers, and employees of the Authority shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. No current or former Director, officer, or employee will be responsible for any act or omission by another Director, officer, or employee. The Authority shall defend, indemnify and hold harmless the individual current and former Directors, officers, and employees for any acts or omissions in the scope of their employment or duties in the manner provided by Government Code Sections 995 et seq. Nothing in this section shall be construed to limit the defenses available under the law, to the Parties, the Authority, or its Directors, officers, or employees.
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1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 23 7.3. Indemnification of Parties. The Authority shall acquire such insurance coverage as is necessary to protect the interests of the Authority and the Parties. The Authority shall defend, indemnify, and hold harmless the Parties and each of their respective Boards of Supervisors or City Councils, officers, agents and employees, from any and all claims, losses, damages, costs, injuries, and liabilities of every kind arising directly or indirectly from the conduct, activities, operations, acts, and omissions of the Authority under this Agreement.

7.4. Amendment of this Agreement. This Agreement may not be amended except by a written amendment approved by a vote of Policy Board members as provided in Section

7.7. Further Assurances. Each Party agrees to execute and deliver all further 126 of 193
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Notices given to one Party shall be copied to all other Parties. Notices given to the Authority shall be copied to all Parties.
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Definitions
“Act” means the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.)
“Administrative Services Agreement” means an agreement or agreements entered into after the Effective Date by the Authority with an entity that will perform tasks necessary for planning, implementing, operating and administering the CCA Program or any other energy programs adopted by the Authority.
“Agreement” means this Joint Powers Agreement.
“Annual Energy Use” has the meaning given in Section 3.7.1. “Authority” means Central Coast Community Energy.
“Authority Document(s)” means document(s) duly adopted by one or both Boards by resolution or motion implementing the powers, functions, and activities of the Authority, including but not limited to the Operating Rules and Regulations, the annual budget, and plans and policies.
“Board” means the Policy Board of Directors of the Authority and/or the Operations Board of Directors of the Authority unless one or the other is specified in this Agreement. “CCA” or “Community Choice Aggregation” means an electric service option available to cities and counties pursuant to Public Utilities Code Section 366.2. “CCA Program” means the Authority’s program relating to CCA that is principally described in this Agreement.
“Director” means a member of the Policy Board of Directors or Operations Board of Directors representing a Party.
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1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 26 “Effective Date” means the date that this Agreement is executed by at least three Initial Participants from the Counties of Monterey, Santa Cruz, and San Benito and the municipalities within those counties, as further described in Section 2.1. “Implementation Plan” means the plan generally described in Section 4.1.2 of this Agreement that is required under Public Utilities Code Section 366.2 to be filed with the California Public Utilities Commission for the purpose of describing a proposed CCA Program.
“Initial Costs” means all costs incurred by the County of Santa Cruz and/or Authority relating to the establishment and initial operation of the Authority, such as the hiring of a Chief Executive Officer and any administrative staff, and any required accounting, administrative, technical, or legal services in support of the Authority’s initial activities or in support of the negotiation, preparation, and approval of one or more Administrative Services Agreements.
“Initial Participants” means those initial founding JPA members whose jurisdictions pass a CCA ordinance, whose Board seats will be allocated on a one jurisdiction, one seat basis (in addition to one seat for San Benito County) until such time as the number of member jurisdictions exceeds eleven, as described in Section 3.1.4. “Operating Rules and Regulations” means the rules, regulations, policies, bylaws and procedures governing the operation of the Authority.
“Operations Board” means the board composed of City Managers and CAOs representing their respective jurisdictions as provided in section 3.1.4 who will provide oversight and support to the Chief Executive Officer on matters pertaining to the provision of electrical service to customers in the region, focusing on the routine, day-to-day operations of the Authority, as further set forth in section 3.3. 129 of 193
1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 27 “Parties” means, collectively, the signatories to this Agreement that have satisfied the conditions in Sections 2.1 or 4.1.1 such that it is considered a member of the Authority. “Party” means singularly, a signatory to this Agreement that has satisfied the conditions in Sections 2.1 or 4.1.1 such that it is considered a member of the Authority. “Policy Board” means the board composed of elected officials representing their respective jurisdictions as provided in section 3.1.4 who will provide guidance/approval in the areas of strategic planning and goal setting, passage of Authority budget and customer rates, large capital expenditures outside the typical power procurement required to provide electrical service, and such other functions as set forth in section 3.3. 130 of 193
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Central Coast Community Energy of Monterey, Santa Cruz, San Benito, and Santa Barbara Counties, and Certain Cities in San Luis Obispo County List of Parties
County of Santa Cruz
City of Santa Cruz
City of Watsonville
City of Capitola
City of Scotts Valley
County of Monterey
City of Salinas
City of Monterey
City of Pacific Grove
City of Carmel
City of Seaside
City of Marina
City of Sand City
City of Soledad
City of Greenfield
City of Gonzales
City of Del Rey Oaks
County of San Benito
City of Hollister
City of San Juan Bautista
City of Morro Bay
City of San Luis Obispo
City of Paso Robles
City of Pismo Beach
City of Grover Beach
City of Arroyo Grande
County of Santa Barbara
City of Santa Maria
City of Solvang
City of Guadalupe
City of Goleta
City of Carpinteria
City of Buellton
City of Atascadero
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29 1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020;9/2/2020; and 9/22/2022 – P a g e 29 Exhibit C
Regional Allocation
Board seats in Central Coast Community Energy will be allocated as follows:
i. One seat for Santa Cruz County;
ii. One seat for Monterey County;
iii. One seat for San Benito County;
iv. One Seat for Santa Barbara County;
v. One seat for the City of Santa Cruz;
vi. One seat for the City of Salinas;
vii. One seat for the City of Watsonville;
viii. One seat for the City of Santa Maria;
ix. One shared seat for remaining Santa Cruz cities including Capitola and Scotts Valley selected by the City Selection Committee; x. One shared seat for Monterey Peninsula cities including Monterey, Pacific Grove, and Carmel selected by the City Selection Committee; xi. One shared seat for Monterey Coastal cities including Marina, Seaside, Sand City, and Del Rey Oaks selected by the City Selection Committee; xii. One shared seat for Salinas Valley cities including Greenfield, Soledad, Gonzales selected by the City Selection Committee;
xiii. One shared seat for San Benito County cities including Hollister and San Juan Bautista selected by the City Selection Committee; and
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1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 30 xiv. One shared seat for the Cities of San Luis Obispo and Morro Bay selected by agreement or the City Selection Committee; and
xv. One shared seat for the Cities of Paso Robles and Atascadero selected by agreement or the City Selection Committee; and
xvi. One shared seat for the Cities of Pismo Beach, Grover Beach, and Arroyo Grande selected by agreement or the City Selection Committee. xvii. One shared seat for the Cities of Guadalupe, Solvang, and Buellton selected by agreement or the City Selection Committee.
xviii. One shared seat for the Cities of Goleta, and Carpinteria selected by agreement or the City Selection Committee.
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1/20/17 as amended 12/5/18; 12/4/19; 6/3/2020; 9/2/2020; and 9/22/2022 – P a g e 30 [SIGNATURE PAGES TO BE INSERTED]
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RESOLUTION NO. PB-2022-02

A RESOLUTION OF THE CENTRAL COAST COMMUNITY ENERGY POLICY

BOARD OF DIRECTORS APPROVING THE FIFTH AMENDMENT TO THE

CENTRAL COAST COMMUNITY ENERGY JOINT EXERCISE OF POWERS

AGREEMENT
WHEREAS, Central Coast Community Energy (the “Authority”) was originally formed as Monterey Bay Community Power Authority on February 21, 2017, pursuant to a Joint Exercise of Powers Agreement (“Agreement”) to study, promote, develop, conduct, operate, and manage energy programs in the Tri-County region of Santa Cruz, Monterey, and San Benito Counties; and
WHEREAS, on December 5, 2018, the Policy Board approved Resolution No. PB-2018-07 approving Amendment No. 1 to the Agreement to include the Cities of Morro Bay and San Luis Obispo; and
WHEREAS, on December 4, 2019, the Policy Board approved Resolution No. PB-2019-04 approving Amendment No. 2 to the Agreement to include the County of Santa Barbara and the Cities of Del Rey Oaks, Paso Robles, Pismo Beach, Grover Beach, Arroyo Grande, Santa Maria, Guadalupe, Goleta, Carpinteria, and Solvang; and
WHEREAS, on June 3, 2020, the Policy Board approved Resolution No. PB-2020-02 approving Amendment No. 3 to the Agreement to change the name of the Authority, effective September 4, 2020, to Central Coast Community Energy in order to better reflect its expanded service territory; and
WHEREAS, on September 4, 2020, the Policy Board approved Resolution No. PB-2020-05 approving Amendment No. 4 to the Agreement to include the City of Buellton; and WHEREAS, the City of Atascadero has adopted an ordinance to form a community choice aggregation program and adopted a resolution requesting to become a party to the Agreement and participate in the Authority’s community choice aggregation program; and WHEREAS, the request from the City of Atascadero to join the Authority requires an amendment to the Agreement pursuant to Section 2.4.14 of the Agreement; and, WHEREAS, Section 7.4 of the Agreement authorizes the Policy Board by a two-thirds vote to amend the Agreement after providing notice to all parties to the Agreement of the amendment and its effective date, which notice has been duly given; and WHEREAS, the Authority wishes to amend the agreement to add the City of Atascadero as a party.
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NOW, THEREFORE, THE CENTRAL COAST COMMUNITY ENERGY POLICY BOARD OF DIRECTORS DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

1. The request by the City of Atascadero to become a party to the Joint Exercise Agreement and a member of Central Coast Community Energy is hereby approved subject to the City of Atascadero’s execution of the Joint Exercise of Powers Agreement as amended.

2. The Fifth Amendment to the Central Coast Community Energy Joint Exercise of Powers Agreement, as attached hereto, is hereby approved.

3. The Fifth Amendment shall be effective September 23, 2022, following the approval by the Policy Board of Directors in accordance with Section 7.4 of this Agreement on September 22, 2022, through this Resolution.

4. This Resolution takes effect immediately upon adoption.

PASSED AND ADOPTED this twenty-second day of September 2022, by the following vote:

AYES:

NOES:

ABSENT:

Chair, Steve McShane
Attest:

Board Clerk, Heather Vowell
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RESOLUTION NO. 2022- 004

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF ATASCADERO, CALIFORNIA,

REQUESTING MEMBERSHIP IN CENTRAL COAST
COMMUNITY ENERGY ( 3CE) AND AUTHORIZING THE MAYOR

OR CITY MANAGER TO EXECUTE THE JOINT POWERS
AUTHORITY AGREEMENT AS AMENDED WITH 3CE
WHEREAS, AB 117, adopted as California state law in 2002, permits cities, counties, or Joint Power Authorities comprised of cities and counties to aggregate residential, commercial, industrial, municipal and institutional electric loads through Community Choice Aggregation CCA); and
WHEREAS, pursuant to Section 366.2 of the Public Utilities Code, two or more entities authorized to be a community choice aggregator may participate as a group in a community choice aggregation program through a joint powers agency established pursuant to Chapter 5 commencing with Section 6500) of Division 7 of Title 1 of the Government Code, if each entity adopts the aforementioned ordinance; and
WHEREAS, in March 2017, 3CE was established as a joint powers agency pursuant to a OMM
joint powers agreement; and
WHEREAS, the purpose of 3CE is to address climate change by providing locally controlled carbon -free electricity at affordable rates; and WHEREAS, in order for the City of Atascadero ( City) to become a member of 3CE, the 3CE Joint Powers Agreement ( JPA) must be amended to permit the City join as a party; and WHEREAS, 3CE also has requested the City adopt a resolution regmsting membership in 3CE and authorizing its Mayor or City Manager to execute the JPA as anwnded, as -well a9 an ordinance authorizing Community Choice Aggregation ( CCA) within i: s juris iction:,Wid WHEREAS, the City wishes to be a community choice aggregator} iursuant, tq the JPA and has introduced the Ordinance required by Public Utilities Code Section 36. F H- 0 to do so; and
WHEREAS, under Public Utilities Code section 366. 2, customers have the right to opt - out ofthe CCE program and continue to receive service from the incumbent utility.

NOW, THEREFORE BE IT RESOLVED, by the Council of the City of Atascadero:

SECTION 1. The City Council requests the Board of Directors of 3CE approve the City ON" of Atascadero as a member of 3CE.

SECTION 2. The Mayor or City Manager is hereby authorized and directed to execute the JPA on behalf of the City after the JPA is amended, which will establish the City' s membership in 3CE.
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City of Atascadero
Resolution No. 2022- 004

Page 2 of 2 ends

SECTION 3. This Resolution and the subsequent joining of3CE is exempt from the requirements ofthe California Environmental Quality Act (CEQA) pursuant to the State CEQA Guidelines, as it is not a " project" since this action involves organizational and administrative activities of government that will not result in direct or indirect physical changes in the environment. (CEQA Regulations § I5378(b)( 5).) Further, the action is exempt from CEQA as there is no possibility that the ordinance or its implementation would have a significant negative effect onthe environment. ( CEQA Regulations. § 15061( b)( 3)). ANoticeofExemption shall be filed as authorized by CEQA and the State CEQA guidelines.

SECTION 4. This resolution shall be effective immediately upon passage and adoption.

PASSED AND ADOPTED at a regular meeting of the City Council held on the 8th day of February, 2022.

On motion by Council Member Funk and seconded by Council Member Bourbeau, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES: Council Members Bourbeau, Danz, Funk, Newsom, and Mayor Moreno NOES: None
ABSENT: None
I:`Z 7' IIIT 11 6Tiia

CITY OF ATASCADERO
1 / qcbr-Heather -Moreno, Mayor
APPROVED T6lFbRM:

PBrian niek, City Attorney
n
n
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ORDINANCE NO. 652

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING

THE IMPLEMENTATION OF A COMMUNITY CHOICE

AGGREGATION PROGRAM BY PARTICIPATING IN CENTRAL

COAST COMMUNITY ENERGY'S COMMUNITY CHOICE

AGGREGATION PROGRAM
WHEREAS, the City Council has previously directed staff to investigate the feasibility and formation of a Community Choice Aggregation ( CCA) program under the provisions of the Public Utilities Code section 366.2 in order to provide electric service to customers within the City of Atascadero with the intent of achieving reduced greenhouse gas emissions, local renewable power development, competitive electric rates and the implementation of energy conservation and other energy programs; and
WHEREAS, Central Coast Community Energy ( 3CE) is an established CCA program capable of providing the desired financial and environmental benefits; and WHEREAS, 3CE will enter into agreements with electric power suppliers and other service providers and, based upon those agreements, 3CE will be able to provide power to residents and businesses at rates that are competitive with those of the incumbent utility PG& E"). Once the California Public Utilities Commission certifies the amended Implementation Plan adopted by 3CE, 3CE will be able to provide service to customers within the City; and WHEREAS, under Public Utilities Code section 366.2, customers have the right to opt - out of a CCA program and continue to receive service from the incumbent utility. Customers who wish to receive service from the incumbent utility will be able to do so; and WHEREAS, on June 25, 2019, July 9, 2019, March 9, 2021, and February 22, 2022, the City Council held public meetings on the manner in which the City will participate in a CCA program at which time interested persons had an opportunity to testify either in support of or opposition to the implementation of a CCA program serving the City through 3CE; and WHEREAS, this ordinance is exempt from the requirements of the California Environmental Quality Act ( CEQA) pursuant to the CEQA Guidelines, as it is not a " project" as it has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment. ( 14 Cal. Code Regs.§ 15378( a)). Further, the ordinance is exempt from CEQA as there is no possibility that the ordinance or its implementation would have a sigr ificant bffect on the environment. ( 14 Cal. Code Regs. § 15061( b)( 3)). The ordinance is also categorically exempt because it is an action taken by a regulatory agency to assume the maintenance, restoration, enhancement or protection of the environment. ( 14 Cal. Code Regs. § 15368). -

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS:
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City of Atascadero
Ordinance No. 652

Page 2 of 2 ends

SECTION 1. Recitals. The above recitals are true and correct and material to this Ordinance.

SECTION 2. Authorization. Based upon the forgoing, and in order to provide businesses and residents within the City with a choice of power providers and with the benefits described above, the City Council hereby elects to implement a community choice aggregation program within the jurisdiction of the City by participating as a group in the Community Choice Aggregation Program of 3CE, as generally described in its Joint Powers Agreement.

SECTION 3. CEQA. The action is exempt from the California Environmental Quality Act ( CEQA), because it is not a " project" as it has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment. ( CEQA Guidelines § 15378( a)). Further, it can be seen with certainty that there is no possibility that the enactment of this Ordinance would have a significant effect on the environment ( Pub. Resources Code § 21065; CEQA Guidelines 5378(bx4), 15061( b)( 3)). The ordinance is also categorically exempt because it is an action taken by a regulatory agency to assume the maintenance, restoration, enhancement or protection ofthe environment. (CEQA Guidelines § 15308).

SECTION 4. Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness ofthe remaining provisions or applications and, to this end, the provisions ofthis Ordinance are severable.

SECTION 5. Notice. The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Atascadero' s book of original ordinances; make a note ofthe passage and adoption in the records of this meeting; and, within fifteen ( 15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law.

SECTION 6. Effective Date. This Ordinance will take effect on the 30th day following its final passage and adoption.

INTRODUCED at a regular meeting ofthe City Council held on February 8, 2022, and PASSED, APPROVED and ADOPTED by the City Council of the City of Atascadero, State of California, on February 22, 2022.

CIT{ Y,OF ATASCADERO
Heather' Moreno, Wor
ST. -
At
aza9- ChristtFlsen, City Clerk
APPROVED S TO FORM:-
1 mV
Brian A. Pierik, City Attorney
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STATE OF CALIFORNIA )
COUNTY OF SAN LUIS OBISPO ) ss

CITY OF ATASCADERO )
I, LARA K. CHRISTENSEN, City Clerk of the City of Atascadero, DO HEREBY CERTIFY that Ordinance No. 652 was duly introduced at a regular meeting held February 8, 2022 and adopted at a regular meeting of the City Council held on the 22nd day of February 2022 by the following roll call vote, to wit:

AYES: Council Members Bourbeau, Danz, Funk, Newsom and Mayor Moreno NOES: None
ABSENT: None
LARA K. GHRISTEiVSEN; CITY CLERK
I hereby certify that the foregoing is the original of Ordinance No. 652 duly passed and adopted by the Atascadero City Council at their regular meeting held on February 22, 2022 and that summaries of the Ordinance were published on February 22, 2022 and February 24, 2022 in the Atascadero News newspaper.

LARA K. Cl ISTENSEN, CITY CLERK
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Staff Report Item 11
TO: CCCE Policy Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Adopt Resolution No. PB-2022-03 Approving Addendum No. 4 to the CCCE Community Choice Aggregation Implementation Plan and Statement of Intent (Action Item) DATE: September 22, 2022
RECOMMENDATION:

This recommends that the Policy Board of Directors adopt Resolution No. PB-2022-03 approving Addendum No. 4 to the CCCE Community Choice Aggregation Implementation Plan and Statement of Intent ("Implementation Plan”) to make certain adjustments reflecting the Expansion of CCCE service to the City of Atascadero in San Luis Obispo County.

The Board’s approval is required prior to submission of the amended Implementation Plan to the California Public Utilities Commission (the “Commission”) for certification.

BACKGROUND:

CCCE’s initial Implementation Plan was certified by the Commission on November 15, 2017. CCCE (then Monterey Bay Community Power) community choice aggregator(“CCA”) program launched on March 1, 2018.

On March 7, 2019, the Commission certified Addendum No. 1, which incorporated certain amendments to reflect CCCE’s expansion to the Cities of Morro Bay and San Luis Obispo.

On March 6, 2020, the Commission certified Addendum No. 2 to CCCE’s Implementation Plan, which addressed the expansion of electric service to the Cities of Del Rey Oaks, Paso Robles, Pismo Beach, Arroyo Grande, Grover Beach, Santa Maria, Guadalupe, Solvang, Goleta, Carpinteria, and unincorporated Santa Barbara County.

On March 8, 2021, the Commission certified Addendum No. 3, extending service to the City of Buellton.

DISCUSSION/ANALYSIS:
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Before expanding its CCA program, CCCE must demonstrate its plan to satisfy certain legal requirements set forth in the California Public Utilities Code section 366.2 (the “Code”). The Code requires that the governing body of each CCA adopt, at a duly noticed public meeting, an addendum to its Implementation Plan, and submit the Implementation Plan to the Commission for certification.

Addendum No. 4 addresses the anticipated impacts of CCCE’s expansion of electric services to the City of Atascadero and certain other forecast modifications reflecting CCCE’s recent operating history. Such impacts include customer energy requirements, peak demand, renewable energy purchases, financial plan, and various other items. Based on historic PG&E data, electricity demand within the City of Atascadero is roughly 113 GWh or 2.2% of CCCE’s total demand upon initiation of service, estimated at 5,200 GWh.

Following expansion of service, anticipated in January 2024 for all eligible customers within the City’s jurisdiction, CCCE’s total number of customer accounts will increase to approximately 450,000.

FISCAL IMPACT:

There is no fiscal impact related to updating the Implementation Plan. The FY 23-24 Operating Budget will reflect any fiscal impacts related to the expansion of service.

CONCLUSION:

The Policy Board’s adoption of Resolution No. PB-2022-03 approves Addendum No. 4 to the Implementation Plan and enables staff to take necessary steps to submit Addendum No. 4 to the Commission for certification which is required prior to the expansion of electric service to the City of Atascadero.

ATTACHMENTS:

1. Draft Resolution No. PB-2022-03

2. Addendum No. 4 to the Implementation Plan
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RESOLUTION NO. PB-2022-03

A RESOLUTION OF THE POLICY BOARD OF DIRECTORS OF

CENTRAL COAST COMMUNITY ENERGY
APPROVING ADDENDUM NO. 4 TO THE COMMUNITY CHOICE AGGREGATION

IMPLEMENTATION PLAN AND STATEMENT OF INTENT AS REQUIRED BY PUBLIC UTILITIES CODE SECTION 366.2 (c)(3)
WHEREAS, the Central Coast Community Energy ("3CE") is a Joint Powers Authority established and operated pursuant to California Government Code section 6500 et seq. 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 founding members of MBCP include the counties of Monterey, Santa Cruz and San Benito and the cities of Santa Cruz, Watsonville, Salinas, Monterey, Pacific Grove, Carmel, Seaside, Marina, Sand City, Soledad, Greenfield, Gonzales, Hollister, San Juan Bautista, Scotts Valley, and Capitola; and
WHEREAS, CCCE’s initial Implementation Plan for the initiation of service was certified by the California Public Utilities Commission on March 1, 2018; and WHEREAS, on December 5, 2018, the Policy Board approved Resolution No. PB-2018- 07 approving Amendment No. 1 to the Agreement to include the Cities of Morro Bay and San Luis Obispo; and
WHEREAS, CCCE’s Addendum No. 1 to its Implementation Plan for the expansion of service to the Cities of Morro Bay and San Luis Obispo was certified by the California Public Utilities Commission on March 7, 2019; and
WHEREAS, on December 4, 2019, the Policy Board approved Resolution No. PB-2019- 04 approving Amendment No. 2 to the Agreement to include the County of Santa Barbara and the Cities of Arroyo Grande, Carpinteria, Del Rey Oaks, Goleta, Grover Beach, Guadalupe, Paso Robles, Pismo Beach, Santa Maria, and Solvang; and
WHEREAS, CCCE’s Addendum No. 2 to its Implementation Plan for the expansion of service to the jurisdictions added by Amendment No. 2 was certified by the California Public Utilities Commission on March 6, 2020; and
WHEREAS, on September 2, 2020, the Policy Board approved Resolution No. PB-2020- 05 approving Amendment No. 4 to the Agreement to include the City of Buellton; and 145 of 193
WHEREAS, CCCE’s Addendum No. 3 to its Implementation Plan for the expansion to the City of Buellton was certified by the California Public Utilities Commission on March 8, 2021; and WHEREAS, on September 22, 2022, the Policy Board approved Resolution No. PB-2022- 02 approving Amendment No. 5 to the Agreement to include the City of Atascadero; and WHEREAS, the City of Atascadero is now a member of CCCE and desires to offer community aggregation service within its jurisdiction commencing January 1, 2024; and WHEREAS, Public Utilities Code Section 366.2 requires that a community choice aggregator develop an Implementation Plan and Statement of Intent (“Implementation Plan”) detailing the process and consequences of aggregation and that such plan, including any subsequent changes to it, be considered and adopted at a duly noticed public hearing; and WHEREAS, Addendum No. 4 to the 3CE Implementation Plan has been prepared to address the process and consequences of 3CE expansion to the City of Atascadero and was presented to the Policy Board at a duly noticed public hearing for its consideration and adoption, and is attached hereto as Attachment A.; and
NOW, THEREFORE, after conducting a duly noticed public hearing as required by the Public Utilities Code Section 366.2 (c)(3), the Policy Board hereby adopts Addendum No. 4 to 3CE’s Community Choice Aggregation Implementation Plan and Statement of Intent to address 3CE expansion to the City of Atascadero.

PASSED AND ADOPTED by the Policy Board of Central Coast Community Energy this twenty-second day of September 2022 by the following vote:

AYES:

NOES:

ABSENT:
_____________________________
Chair, Steve McShane
Attest:
_____________________________
Board Clerk, Heather Vowell
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1 ADDENDUM NO. 4 TO THE

COMMUNITY CHOICE AGGREGATION

IMPLEMENTATION PLAN

AND STATEMENT OF INTENT

ADDRESSING
CENTRAL COAST COMMUNITY ENERGY’S

EXPANSION TO INCLUDE THE

CITY OF ATASCADERO
SEMPTEMBER 22, 2022
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2 Table of Contents
CHAPTER 1 – Introduction & Statement of Intent ................................................................................3 CHAPTER 2 – Changes to Address CCCE Service Extension to the Expansion Communities.....5 Enrollment Process ...................................................................................................................................7 Program Phase-In ......................................................................................................................................7 Sales Forecast..............................................................................................................................................8 Financial Plan ...........................................................................................................................................11 Expansion Addendum Appendices......................................................................................................13 148 of 193
3 CHAPTER 1 – Introduction & Statement of Intent
Addendum No. 4 to Monterey Bay Community Power Authority’s (“MBCP” and now, Central Coast Community Energy or “CCCE”) Implementation Plan and Statement of Intent (“Implementation Plan”)1 addresses CCCE’s expansion to include the City of Atascadero in San Luis Obispo County (“Atascadero”).

CCCE is a Joint Powers Authority established and operating under Government Code § 6500 et. seq. CCCE runs the Community Choice Aggregation (“CCA”) program (as provided for in Public Utilities Code § 366.2 et. seq., for the counties of Monterey, Santa Cruz, San Benito, and Santa Barbara Counties as well as certain cities within San Luis Obispo County.

Initial Implementation Plan and Statement of Intent
CCCE—at the time, named MBCP—submitted its initial Implementation Plan to the California Public Utilities Commission (the “Commission”) on August 16, 2017. That initial Implementation Plan was certified by the Commission on November 15, 2017. CCCE successfully launched the Program on March 1, 2018, to its initial member agencies.2 Addendum No. 1 to the Implementation Plan and Statement of Intent At its December 5, 2018 Meeting, CCCE’s—at the time, named MBCP—Policy Board3adopted Resolution No. PB-2018-07 to include the cities of Morro Bay and San Luis Obispo, both of which are in San Luis Obispo County. Addendum No. 1 to the Implementation Plan (“Addendum No. 1”), approved by Resolution No. PB-2018-08, was submitted to the Commission for certification on December 7, 2018, and was certified on March 7, 2019. CCCE began service in the cities of Morro Bay and San Luis Obispo in January 2020.

Addendum No. 2 to the Implementation Plan and Statement of Intent On December 4, 2019, via Resolution No. PB-2019-005, MBCP adopted and authorized submittal 1 On June 3, 2020, Monterey Bay Community Power Authority’s Policy Board of Directors adopted Resolution PB-2020-02 to amend its Joint Powers Agreement changing its name to Central Coast Community Energy effective September 4, 2020. Any reference to Monterey Bay Community Power Authority or MBCP in the initial Implementation Plan and Statement of Intent, or in either Addendum No. 1 or Addendum No. 2 should be interpreted to mean Central Coast Community Energy or CCCE. 2 Initial member agencies included: the counties of Monterey, Santa Cruz and San Benito as well as the cities of Capitola, Santa Cruz, Scotts Valley, Watsonville, Salinas, Monterey, Pacific Grove, Carmel, Seaside, Marina, Sand City, Soledad, Greenfield, Gonzales, Hollister, and San Juan Bautista. 3 CCCE is governed by two distinct governing bodies. First, the Policy Board retains responsibility for policy-related direction and decisions pertaining to CCCE’s organization and makes approvals of membership requests. Second, the Operations Board oversees operational matters. 149 of 193
4 of Addendum No. 2 to the Implementation Plan (“Addendum No. 2”) to address expansion into eleven additional jurisdictions including the County of Santa Barbara as well as the cities of Arroyo Grande, Carpinteria, Del Rey Oaks, Goleta, Grover Beach, Guadalupe, Paso Robles, Pismo Beach, Santa Maria, and Solvang.

Addendum No. 2 was submitted December 17, 2019, and certified by the Commission on March 9, 2020. CCCE began service in the Pacific Gas & Electric service area jurisdictions (Northern Santa Barbara County, Arroyo Grande, Del Rey Oakes, Grover Beach, Guadalupe, Paso Robles, Pismo Beach, Santa Maria, and Solvang, collectively, the “2021 PG&E Jurisdictions”) in January 2021.

Due to delays in Southern California Edison’s Customer Service Re- Platform, CCCE began service in Southern California Edison territory (including Southern Santa Barbara County and the cities of Carpinteria and Guadalupe, collectively, the “2021 SCE Jurisdictions”) began in October 2021.

Addendum No. 3 to the Implementation Plan and Statement of Intent On November 4, 2021, the CCCE Policy Board adopted Resolution No. PB-2020-06, approving Addendum No. 3 to the Implementation Plan and Statement of Intent (“Addendum No. 3”) to address expansion into the City of Buellton.

Addendum No. 3 was submitted December 3, 2020 and certified by the Commission on March 8, 2021. CCCE began service in Buellton in January 2022.

Addendum No. 4 to the Implementation Plan and Statement of Intent CCCE’s Addendum No. 4 primarily addresses CCCE’s planned expansion to serve customers in the City of Atascadero beginning in January 2024.

Additionally, Addendum No. 4 contains certain updated projections that are consistent with CCCE’s recently approved 2020 Integrated Resources Plan, current resource planning, Proposed FY 2022/2023 Operating Budget, and other operating considerations.

Finally, Addendum No. 4, including references to CCCE’s August 16, 2017 Implementation Plan, December 7, 2018 Addendum No. 1, December 17, 2019 Addendum No. 2, and November 4, 2020 Addendum No. 3 each of which are incorporated by reference and attached hereto as Appendices E, F, G, and H respectively, address all requirements identified in Public Utilities Code Section 366.2(c)(4), including universal access, reliability, equitable treatment of all customer classes and any requirements established by state law or by the CPUC concerning aggregated service. 150 of 193
5 CHAPTER 2 – Changes to Address CCCE Service Extension to the City of Atascadero As set for above, CCCE’s Addendum No. 4 primarily addresses CCCE’s planned expansion to serve customers in Atascadero beginning in January 2024. Addendum No. 4 also provides updated projections based on CCCE’s operating history.

The addition of Atascadero in January 2024 will have minor impacts on CCCE’s operations including customer energy requirements, peak demand, renewable energy purchases, revenues, expenses and various other items. CCCE’s commitment to 60% of its retail load met by clean and renewable resources by 2025 and 100% by 2030, are reflected in the following sections. To the extent that other details related to membership expansion are not specifically discussed within this Addendum No. 4, CCCE represents that such information has not substantively changed relative to the initial Implementation Plan or Addendums Nos. 1, 2, or 3 as previously certified by the Commission.
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6 The following communities are now signatories to the CCCE Joint Powers Agreement and represent CCCE’s current Members or Membership4:

Member Agencies
1 City of Arroyo Grande
2 City of Atascadero
3 City of Capitola
4 City of Carmel-by-the-sea
5 City of Carpinteria
6 City of Buellton
7 City of Del Rey Oaks
8 City of Goleta
9 City of Gonzales
10 City of Greenfield
11 City of Grover Beach
12 City of Guadalupe
13 City of Hollister
14 City of Marina
15 City of Monterey
16 City of Morro Bay
17 City of Pacific Grove
18 City of Paso Robles
19 City of Pismo Beach
20 City of Sand City
21 City of Salinas
22 City of San Juan Bautista
23 City of San Luis Obispo
24 City of Santa Cruz
25 City of Santa Maria
26 City of Scotts Valley
27 City of Seaside
28 City of Soledad
29 City of Solvang
30 City of Watsonville
31 County of Monterey
32 County of San Benito
4 The term Member(s) or Membership as used throughout the initial Implementation Plan or Addendums Nos. 1, 2, 3, 4 shall refer to the complete list of CCCE’s 33 member agencies. 152 of 193
7 33 County of Santa Barbara
34 County of Santa Cruz
Enrollment Process
All customers currently enrolled in the CCCE program were appropriately noticed. Before additional phases of customers are enrolled in the Program, CCCE will comply with all required notice procedures, including mailing written notices to customers. Notice shall be sent at least two calendar months, or sixty days, prior to the commencement of automatic enrollment and two calendar months or sixty days, following the enrollment of customers.

All notices will provide information needed to understand the Program’s terms and conditions of service as well as explain how prospective customers can opt-out of the Program, if desired.

All customers that do not follow the opt-out process specified in the customer notices will be automatically enrolled, and service will begin at their next regularly scheduled meter read date at least one calendar month, or thirty days, following the date of automatic enrollment, subject to the service phase-in plan later described in Chapter 5.

Customers enrolled in the Program will continue to have their electric meters read by and receive billing statements for electric service from their respective distribution utility (PG&E or SCE, as appropriate, depending upon the geographic area in which such customer takes electric service).

The electric bills for Program customers will show separate charges for generation procured on behalf of participating customers by the Program and all other charges related to the delivery of such electricity, as well as other utility charges, assessed by the distribution utility.

After service cutover, and as previously noted, customers will be given at least two additional notifications to opt-out of the Program and return to their respective distribution utility (PG&E or SCE, as appropriate) following receipt of their first and second bills. Customers that opt-out between the initial cutover date and the close of the post enrollment opt-out period will be responsible for program generation charges for the time they were served by CCCE but will not otherwise be subject to any penalty for leaving the program. Customers that have not opted-out within thirty days of the fourth opt-out notice will be deemed to have elected to become a participant in the Program and to have agreed to the Program’s terms and conditions, including those pertaining to requests for termination of service.

Program Phase-In
CCCE will continue to phase-in the customers of its Program as communicated in this Implementation Plan. To date, six phases have been successfully implemented. The City of Atascadero enrollment will be the seventh phase and is scheduled for January 2024. 153 of 193
8 Phase 1. Complete, March 2018: All commercial, industrial and agricultural customers, which comprised approximately 34.14 percent of total customer load.

Phase 2. Complete, July 2018: Approximately 235,000 additional customers, comprised of residential accounts, which approximated 17.5 percent of total customer load.

Phase 3. Complete, January 2020: Approximately 30,000 residential, commercial, industrial, agricultural, and street lighting accounts within the cities of San Luis Obispo and Morro Bay, which comprised approximately 5 percent of total customer load.

Phase 4. Complete, January 2021: Residential, commercial, industrial, agricultural, and street lighting accounts within the 2021 PG&E Jurisdictions, which comprised approximately 27 percent of total customer load.

Phase 5. Complete, October 2021: Residential, commercial, industrial, agricultural, and street lighting accounts within the 2021 SCE Jurisdictions, which comprised approximately 15 percent of total customer load.

Phase 6. Complete, January 2022: Residential, commercial, industrial, agricultural, and street lighting accounts within the City of Buellton, which comprised approximately .64 percent of total customer load.

Phase 7. Planned, January 2024: Residential, commercial, industrial, agricultural, and street lighting accounts within the City of Atascadero, with exact timing subject to economic and operational constraints.

The multi-phase implementation approach has provided CCCE with the ability to start slow, addressing any problems and unforeseen challenges of a small manageable program before gradually building to full program implementation (with an expected customer base of approximately 454,000 accounts), following completion of all seven enrollment phases.

Sales Forecast
Regarding CCCE’s sales forecast, which is addressed in Chapter 6, Load Forecast and Resource Plan, CCCE assumes that total annual retail sales will increase to 5,200 GWh following the expansion to the City of Atascadero. The following tables have been updated to reflect the impacts of planned expansion to CCCE’s new membership.
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9 CHAPTER 6, Resource Plan Overview
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
CCCE Demand
Retail Demand (GWh) (5,367) (5,408) (5,433) (5,456) (5,492) (5,498) (5,518) (5,537) (5,570) (5,596) Losses and UFE (GWh) (333) (336) (338) (339) (341) (342) (343) (344) (346) (348) Total Demand (GWh) (5,700) (5,744) (5,770) (5,795) (5,833) (5,840) (5,861) (5,881) (5,916) (5,944) CCCE Supply
Renewable Resources (GWh) 2,971 3,146 3,124 2,939 2,917 2,890 2,864 2,835 2,807 2,779 Unspecified Power (GWh) 2,730 2,598 2,646 2,856 2,917 2,950 2,998 3,046 3,109 3,165 Total Supply (GWh) 5,700 5,744 5,770 5,795 5,833 5,840 5,861 5,881 5,916 5,944 Energy Open Position (GWh) - - - - - - - - - -
Central Coast Community Energy
Proposed Resource Plan (GWH)
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10 CHAPTER 6, Customer Forecast
Central Coast Community Energy
Enrolled Retail Service Accounts
Phase-In Period (End of Month)
Mar-18 Jul-18 Jan-20 Jan-21 Oct-21 Jan-22 Jan-24
CCCE Customers
Residential <15 232,859 261,201 347,713 373,627 375,350 388,472 Commercial 31,685 31,685 35,371 48,673 52,414 52,950 55,239 Industrial 37 37 26 40 58 71 75
Ag & Pumping 4,819 4,819 4,566 6,506 6,991 7,004 7,240
Street Lighting & Traffic 2,211 2,211 2,393 3,077 3,443 3,467 3,593 Total 38,752 271,611 303,557 406,009 436,533 438,842 454,619 Central Coast Community Energy
Retail Service Accounts (End of Year)
2023 to 2032
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
CCCE Customers
Residential 377,982 388,472 386,928 385,868 385,023 384,274 383,580 382,899 382,223 381,551 Commercial 53,796 55,239 55,089 54,986 54,903 54,826 54,749 54,673 54,597 54,521 Industrial 74 75 75 75 75 74 74 74 74 74
Ag & Pumping 7,271 7,240 7,216 7,197 7,182 7,168 7,155 7,142 7,129 7,117 Street Lighting & Traffic 3,498 3,593 3,589 3,586 3,584 3,581 3,579 3,577 3,574 3,572 Total 442,621 454,619 452,896 451,712 450,766 449,923 449,137 448,365 447,598 446,835 156 of 193
11 CHAPTER 6, Sales Forecast
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
CCCE Demand
Retail Demand (GWh) 5,367 5,408 5,433 5,456 5,492 5,498 5,518 5,537 5,570 5,596 Losses and UFE (GWh) 333 336 338 339 341 342 343 344 346 348 Total Load Requirement (GWh) 5,700 5,744 5,770 5,795 5,833 5,840 5,861 5,881 5,916 5,944 Central Coast Community Energy
Energy Requirements (GWH)
CHAPTER 6, Renewables Portfolio Standards Energy Requirements 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Retail Sales 5,367 5,408 5,433 5,456 5,492 5,498 5,518 5,537 5,570 5,596 Annual RPS Target (% of Retail Sales) 44% 47% 49% 52% 55% 57% 60% 66% 72% 78% Annual RPS Target (Minimum GWh) 2,361 2,524 2,680 2,837 3,002 3,152 3,311 3,655 4,010 4,365 Annual L/T RPS Target (Minimum GWh) 1,535 1,641 1,742 1,844 1,952 2,049 2,152 2,375 2,607 2,837 Program Renewable Target (GWh) 2,361 3,245 3,694 4,146 4,613 5,059 5,518 5,537 5,570 5,596 Program Target (% of Retail Sales) 44% 60% 68% 76% 84% 92% 100% 100% 100% 100% Vol. Margin of Overprocurment (GWh) - 721 1,014 1,309 1,611 1,906 2,207 1,883 1,560 1,231 Renewable Portofolio (GWh)
Central Coast Community Energy
CCCE’s procurement strategy to accelerate long-term contracting of renewable energy to achieve 60% RPS by 2025 and 100% by 2030 is likely to result in CCCE’s routine exceedance of RPS compliance mandates.
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12 CHAPTER 6, Capacity Requirements
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Retail Peak Demand (MW) 767 776 787 798 809 816 826 838 849 857 Losses and UFE (GW) 48 48 49 50 50 51 51 52 53 53
Total Net Peak Demand (MW) 814 824 836 847 859 867 877 890 901 911 Reserve Requirement 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% Capacity Reserve Requirement 138 140 142 144 146 147 149 151 153 155 Expansion Increment Req. (MW) 38 39 40 40 41 41 42 42 43 43 Total Capacity Requirement (MW) 991 1003 1018 1032 1046 1056 1068 1083 1097 1109 Central Coast Community Energy
Capacity Portfolio (MW)
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13 Financial Plan
Regarding CCCE’s financial plan, which is addressed in Chapter 7, Financial Plan, CCCE has updated its expected operating results, which now include projected impacts related to service expansion to the City of Atascadero. The following table reflects updated operating projections in consideration of the planned expansion.

CHAPTER 7, CCA Program Operating Results
CY 2023 CY 2024 CY 2025 CY 2026 CY 2027 CY 2028 CY 2029 CY 2030 CY 2031 CY 2032 CY 2033 Revenues 436 447 406 385 389 401 413 425 438 451 465
Costs
Cost of Energy 388 354 361 337 347 358 368 379 391 402 414 Energy Programs 16 16 16 16 16 17 17 18 19 19 20
Administrative Budget 24 25 25 25 26 27 27 28 29 30 31
Total Costs 428 395 402 378 389 401 413 425 438 451 465 Net Position 8 52 4 7 0 0 0 0 0 0 0
End of Year Reserve Fund 187 234 239 245 245 245 245 245 245 245 245 End of Year Reserve Fund as % of Revenues 43% 52% 59% 64% 63% 61% 59% 58% 56% 54% 53% Notional values for reference only. Assume stable market and revenues, with nominal 3% inflation in Years 5-10 CCCE Notional Indicative 10-Year Financial Forecast ($ MM) Expansion Addendum Appendices
Appendix A: Central Coast Community Energy Resolution PB-2022-02 Appendix B: Fifth Amendment to Central Coast Community Energy Joint Powers Agreement
Appendix C: City of Atascadero Ordinance No. 652
Appendix D: City of Atascadero Resolution No. 2022-004
Appendix E: Central Coast Community Energy Implementation Plan and Statement of Intent
Appendix F: Addendum No. 1 to CCCE Implementation Plan and Statement of Intent w/out attachments.

Appendix G: Addendum No. 2 to CCCE Implementation Plan and Statement of Intent w/out attachments
Appendix H: Addendum No. 3 to CCCE Implementation Plan and Statement of Intent w/out attachments
Appendix I: Central Coast Community Energy Resolution PB-2023-03 159 of 193
Staff Report Item 12
TO: CCCE Policy Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Adopt Resolution No, PB-2022-04 Approving CCCE’s FY 2022/23 Operating Budget And Adjustment to Electric Generation Rates in the PG&E Service Territory (Action Item) DATE: September 22, 2022
RECOMMENDATION:

This recommends that the Policy Board of Directors (“Policy Board”) adopt Resolution No. PB-2022-04 to achieve the following.
1- Reduce rates for all customer classes in the PG&E service area by 1 cent/kwh for calendar years 2023 and 2024 and
2- Approve the CCCE FY 2022/23 Operating Budget.

BACKGROUND:

In June 2021, the Policy Board approved setting electric generation rates based on the cost to serve customers.

In September 2021, to address rising cost of power supply, the Policy Board approved a 1 cent/kwh adder to the rates of all customers classes in the PG&E service territory.

In December 2021, to address the persistent power supply price hikes, the Policy Board approved:
 An additional 2 c/kWh rate adder for all customers in the PG&E service area  Continuing the 1 c/kWh rate adder approved in September for CYs 2023-24 SCE service area customers were enrolled beginning in October 2021. To be consistent with enrollment messaging, the SCE service area customers rates were set at SCE rates minus 2 percent for CY 2022 with the intention to switch to cost based rates in CY 2023.

DISCUSSION:
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Power Supply Budget
CCCE anticipates a substantial rise in power supply cost (“Cost of Energy” or “COE”). CCCE stabilizes Cost of Energy and exposure in the energy market through long-term power purchase agreements and short term (one to three years) energy price hedging. As Figure 1 shows, natural gas prices – a significant driver of California power prices – have more than tripled since 2019-20. Note that while CCCE does not procure power from natural gas power plants, regional power prices are heavily influenced by gas-fired power plants. Therefore, increased volatility in natural gas markets and higher prices in natural gas markets affect regional spot and long-term power price benchmarks. These regional power prices and benchmarks in turn affect the prices at which developers and market participants are willing to transact with CCCE.

Figure 1: Henry Hub Front Month Futures Contract. Source: US Energy Information Administration The market price for power products has increased, with long-term prices and market liquidity reflecting uncertainty around the long-term California power supply-demand balance, market rules, natural gas volatility, and long-term price equilibrium.

Considering the sizable increase in power supply cost, staff currently propose to reduce rates for customers in the PG&E service area by 1 c/kWh for Calendar Year 2023 and 2024 instead of the 2 c/kWh reduction that was anticipated in December 2021.
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Electrification Programs
At inception and in the years since, CCCE’s energy programs’ budget was indexed to revenue, i.e., set as a percent of revenue. That approach was reasonable considering that CCCE had limited data with which to plan and administer electrification programs within our service area.

Over the past 5 years, CCCE’s professional staff made significant improvements to identify market demand, barriers and then adjust the design and operation of energy programs – experience and data that is being successfully leveraged to size program spend based on need and effectiveness. Moreover, the adoption of cost-based rates enables the agency to plan for and capture revenues sufficient to cover investments made in CCCE’s electrification programs.

The variable indexed approach can create inherent volatility in program budgets and potentially lead to a mismatch between revenues collected for programs and the actual demand for those programs.

Matching energy program investment with community demand is prudent for a variety of reasons:
 Competitive and fair rates. Program funds are collected from all CCCE customers. It is important that rates and program portfolio management be tailored to ensure competitiveness with the Investor-Owned Utilities (IOUs) and avoid burdening customers with additional costs unsupported by program demand or adoption.
 Increasing program budget stability. CCCE rates reflect its cost of service – and CCCE’s goal is to reduce cost by procuring low-cost power. If revenues decline, program funds will decline.

Removing the index approach will provide greater long-term stability and avoid unexpected declines or a whipsaw effect where program funds move up and down sequentially.  Greater alignment with the ability to scale programs and greater visibility into actual spend at the program line-item level. This enables CCCE’s professional staff to better plan and manage energy programs for success throughout the year.
 Improve financial stability and visibility.
o Currently, the balances for program funds and the UPS Fund are carried as unrestricted funds. Separating funds committed under contract or letters of intent and then restricting them would guarantee the funds are accessible only for the purpose for which they were committed under a letter of intent or agreement.
o As discussed below, consolidation of unrestricted funds into a single reserve ensures credit rating agencies treat these as unrestricted liquid funds available to CCCE.

The better approach is to budget for programs based on the anticipated spending on these programs rather than committing to a percent of revenue funding structure. Furthermore, combining all existing unspent reserves into one Reserve Fund and having a separate restricted program fund to carry committed program dollars adheres to best business and accounting practices. Ensuring that unrestricted reserves are viewed properly by rating agencies helps position CCCE in contract 162 of 193
negotiations and regulatory proceedings where the CCAs are arguing metrics like credit ratings and cash-on-hand liquidity should be considered when setting customer protection requirements like the Financial Security Requirement.

Staffing and Support Services
This budget cycle, staff made several structural changes to increase transparency and reduce variability:
 Held year-on-year increases to the organization’s Compensation & Benefits budget to be flat  Realigned and updated the entire organization’s Chart of Accounts to reflect the organization’s evolution and enable more robust budgeting, expense attribution, and reporting  Bottom-up budgeting with Divisions developing their budgets from a zero base; customized forward-looking estimates replaced prescriptive allocations in multiple categories  Detailed estimates for categories forecast to experience material spend  Budgeting an additional 5% of the staffing and other support as a contingency to absorb inflation, supply chain challenges, and unanticipated increases.

Preliminary Budget Forecast
The following table shows the preliminary FY 2022-23 budget and 3-year financial forecast, incorporating the 1 c/kWh rollback for the PG&E service area.

CY 2023 CY 2024 CY 2025
Revenues 436 447 406
Costs
Cost of Energy 388 354 361
Energy Programs 16 16 16
Administrative Budget 24 25 25
Total Costs 428 395 402
Net Position 8 52 4
Rate Adder (c/Kwh) 2 2 1
End of Year Reserve Fund 187 234 239
End of Year Reserve Fund as % of Revenues 43% 52% 59%
CCCE Pro Forma 3-Year Financial Forecast ($ MM)
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Key non-energy expenses and the accompanying year-on-year changes are detailed below.

FY 22/23 Y/Y Change
Energy Programs: Community Programs
Electrify Your Ride 4.6 1.5
Agriculture Electrification 2 1.6
Electric Bus 2 1
Energy Programs: Member Agency Programs
Charge Your Fleet 1.25 1.25
Administrative Budget: Top 5 Expenditures
Compensation & Benefits 9.3 0.0
Data Manager 2.8 -1.0
IOU Service Fees 2.1 0.2
Legal 1.8 0.8
Technical Consultants 1.5 1.1
CCCE Pro Forma: Select Key Items ($ MM)
The $16 MM in Energy Program spend is net new commitments for incentives and does not include staff and support costs. An additional $1.8 MM will be spent in FY 22/23 on staff compensation and administrative expenses. This brings total projected FY 22/23 Energy Program spend to over $17.8 MM.

Moreover, the Energy Program spend does not include prior years’ approximately $9.6MM in firm commitments made through contracts or Letters of Intent. These commitments will be moved to a restricted Program Fund and the uncommitted fund balance – currently estimated to be approximately $10 MM at the end of FY 21/22 - will be moved into the Reserve Fund.

Staff are actively engaged in PPA discussions and hedging activities, all of which could be impacted by market price moves and regulatory decisions. It may be necessary to for Staff to return to the Policy Board in December if market and regulatory decisions warrant.

Competitiveness With Investor-Owned Utilities
Delivering value to customers is a key priority for CCCE. One measure of that value – though certainly not the only one - is the savings CCCE can deliver versus the legacy Investor-Owned Utilities (“IOUs”).

The IOUs issue projections of their next calendar years’ generation rates through the Energy Resource Recovery Account (“ERRA”) proceeding. Their initial projections of 2023 rates were made in June 2022.

They will revise these projections based on market conditions and finalize their rates by December 2022. 164 of 193
CCCE commissioned NewGen Strategies & Solutions, LLC (“NewGen”) to develop a customized analysis of CCCE’s competitiveness based on the IOUs’ June projection of their 2023 IOU rates. In addition to reviewing the rates themselves, the analysis calculated the amount spent on average by customers over the course of a year – accounting for monthly consumption patterns and any applicable demand charges1. For customers with demand charges, this helps create a more apples-to-apples comparison between CCCE and IOU rates.

The analysis indicates CCCE would be competitive with PG&E’s projected 2023 if CCCE held its current rates steady. CCCE’s competitiveness would further improve provided the Board approve of staff recommendations. The following table shows CCCE’s competitive position relative to PG&E.

For customers in the SCE service area, staff recommends the current rate structure of 2% discount of the SCE rates.

It is important to note that PG&E’s projected 2023 rates are based on a snapshot in time, in this case June 2022. Headroom could decrease substantially if final PG&E rates, which will become certain in December 2022, decrease from current projections.

CUSTOMER CLASS CCCE Current Rates Projected CCCE
2023 Rates
Projected PG&E
2023 Rates
Difference Between Projected PG&E 2023
Rates And Projected CCCE 2023 Rates
RES 0.12 0.10 0.13 -16%
SM COM 0.13 0.11 0.13 -17%
MED COM 0.11 0.10 0.12 -21%
LG COM 0.11 0.09 0.10 -13%
AGR 0.11 0.10 0.11 -13%
SL 0.11 0.09 0.11 -16%
PROPOSED CCCE VS PG&E 2023 ERRA FORECAST
RATE GROUP CUSTOMER CLASS Projected CCCE 2023
Rates
Projected SCE 2023
Rates
Difference Between Projected SCE 2023 Rates
And Projected CCCE 2023 Rates
DOMESTIC RES $0.092 $0.094 -2%
TOU-GS-1 SM COM $0.092 $0.094 -2%
TOU-GS-2 MED COM $0.092 $0.094 -2%
TOU-GS-3 LG COM $0.078 $0.080 -2%
TOU-8 LG COM $0.070 $0.071 -2%
TOU-PA-2 MED AG $0.076 $0.077 -2%
TOU-PA-3 LARGE AG $0.063 $0.064 -2%
Street Lighting SL $0.048 $0.049 -2%
Traffic Control TC $0.074 $0.075 -2%
PROPOSED CCCE VS SCE 2023 ERRA FORECAST
Estimated rate projections. Average rates calculated based on customer samples and weights. 1 For rate codes without demand charges, the base starting point for calculation was all customers. For rate codes with demand charges, the base starting point for calculation was the five largest customers. 165 of 193
Staff anticipates conducting a unified cost of service study across the entire PG&E and SCE services for the next 3-year rate cycle that begins in 2025. At that time, staff will explore a single set of rates.

As noted above, these are preliminary projections based on snapshots in time. The high degree of volatility in markets, continuing supply chain issues, hedging activities, and the fluid nature of PPA contract discussions means both CCCE’s own rate projects and the IOUs’ rate projections may change over the next 4 months. Staff will continue to update projections and the Boards as new information becomes available, with the goal of continuing to deliver value for customers.

At its September 15, 2022 meeting, the CCCE Audit & Finance Committee recommended the Policy Board approve the FY 22/23 budget and PG&E service area rate adjustments.

FISCAL IMPACT:

CCCE proposes reducing rates for PG&E customers by 1 c/KWh for the PG&E service area over the next 2 calendar years. The Reserve Fund is projected to reach 50% of revenues at the end of 2024.

CONCLUSION:

The Policy Board’s approval of the FY 22/23 Operating Budget will significantly advance CCCE’s budget and financial practices, make a significant investment in energy programs, and continue delivering value for customers.

ATTACHMENT(S):

1. CCCE FY 2022/23 Budget Book

2. Draft Resolution No. PB-2022-04
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POWERING OUR FUTURE
FY 22/23 OPERATING BUDGET
70 Garden Court Suite 300 Monterey CA 93940
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CEO’s Message............................................................................................................................... 1 FY 2021/22 Key Accomplishments ............................................................................................... 3 Strategic Outlook: 2022-2027 ........................................................................................................ 5 FY 2022/23 Operating Budget ....................................................................................................... 7 FY22/23 Budget Drivers, Assumptions & Risks.......................................................................................... 8 Projected 2023 Rates..................................................................................................................................10 3-Year Strategic Forecast...........................................................................................................................11 FY22/23 Budget ..........................................................................................................................................12 FY22/23 Budget Key Year over Year Staffing and Support ............................................................13 Long-Range Forecast Key Assumptions & Risks .......................................................................................14 Long-Range Pro Forma................................................................................................................................14 About CCCE .................................................................................................................................. 16 CCCE Membership Enrollment ..................................................................................................... 17 Our Boards ................................................................................................................................... 19 2022 Policy Board.......................................................................................................................................20 2022 Operations Board .............................................................................................................................21 2022 Community Advisory Council............................................................................................................22

TABLE OF CONTENTS
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1 CEO MESSAGE
The leadership of the Policy and Operations Boards of Directors along with the dedication of our professional staff have brought Central Coast Community Energy (CCCE) through the greatest public health crisis in our lifetimes, the resulting upheaval in world supply chains, and the most volatile electric energy markets in over twenty years.

Through all of it, CCCE has managed its energy supply costs, continued investing in our goal of 100% clean and renewable power by 2030, maximized programs delivery, and established itself as a leader in our communities and the state.

Remaining focused on our goal of reaching 100% renewable energy by 2030 has allowed CCCE to find opportunity amid the turbulent energy markets experienced this year. Five new renewable energy projects that we invested in came online in 2022, with the collective capacity to serve 22% of our customers’ annual energy demand. These rewards came at a time when many energy companies were urgently reviewing their strategies to respond to new regulations and higher prices. Our agency, on the other hand, found that by sticking to the strategy so well-laid out at our formation, we have weathered the storm and made remarkable progress toward achieving our goals.

A Global Energy Crisis
The war in Ukraine triggered a squeeze on energy supplies that has driven power and fuel prices up and added to inflationary pressures worldwide.

In California, regulators at the California Public Utilities Commission (CPUC) issued procurement orders that sent load-serving entities across the state scrambling to sign long-term renewable power purchase and storage agreements when market prices were at a twenty-year high due to supply chain constraints and congested interconnection queues. The competition for projects spurred some of our long-term PPA counterparties to seek to reopen previously negotiated agreements and push for higher prices, which would ultimately fall to our customers.

While CCCE is willing to offer flexibility and help our counterparties succeed in delivering the projects they’ve promised, we remain committed to honoring the original core contract terms in every case. As an agency formed to serve the public, we hold to our word and expect no less from our partners.

Because we signed many of our energy supply contracts when prices were more favorable, our customers have been sheltered from the recent spike in prices. As the fiscal year draws to a close, it’s clear that the course settled upon when our agency was formed, and the ability of our leadership and staff to remain faithful to this direction, despite current challenges, has served our customers’ best interests.

Keeping Our Focus
The current energy crisis may drive faster adoption of renewable energy technologies. It’s encouraging to see elected leaders at the state and federal levels working to usher in the transformational changes required to address climate change. Current conditions will also foster innovation. In the past year, CCCE coordinated with CC Power to scale CCA’s buying power for new geothermal resources. We’re actively evaluating diverse storage technologies, like compressed air, and we have made considerable progress on our Front-of-the-Meter Energy Storage project, which positions our agency to own distributed battery storage throughout our service area.

Our agency is primed to identify the opportunities that arise in periods of great upheaval and change because our mission is clear. We are pressing toward our goal of attaining 60% renewable energy by 2025 and 100% by 2030. And while our goals are more ambitious than those set by President Biden and Governor Newsom, we are making steady progress, which affirms our belief they are attainable and realistic. 169 of 193
2 CEO MESSAGE
CCCE’s progress is evidenced by the success of our Energy Programs this year, which exceeded previous years’ performance in the number of applicants, expenditure of dedicated funding, and the assumed reductions in GHG emissions, which are greater than those achieved in all previous years combined. This achievement is the result of staying tied to the fundamentals of what makes programs impactful to our communities and attractive to our customers, insisting on clarity in planning, and an undying dedication to continually improving the process.

We take the same approach in pursuing new sources of renewable energy – and in formulating a portfolio of solar, wind, and geothermal projects at a large scale that can serve our demand. The aim is reliability and capacity to meet growing demands for clean power as we shift away from fossil fuel-burning technologies in transportation and business. Looking ahead and anticipating these increases is one of the reasons we’ve invested in battery storage projects that will enable us to dispatch renewable energy in our community’s load centers – bringing dependability to the hours of the day when solar energy is less available and people’s energy demands remain high.

In 2023, we expect six additional new renewable power supply projects to come online. With each arrival, we are closer to a cleaner, healthier, and more sustainable future for the Central Coast. While there is much work ahead, we look forward to building on our successes. Our actions today are critical to creating a sustainable, inclusive, and economically, socially, and environmentally beneficial energy transformation.

Tom Habashi, Chief Executive Officer
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3 FY 2021/22 KEY ACCOMPLISHMENTS
Delivering Financial Value, Innovation And Strength
• Delivered competitive cost-based rates up to 20% below Pacific Gas & Electric (PG&E) • Delivered electricity generation rates 2% below Southern California Edison (SCE) • Provided CARE/FERA customers a $100 bill credit to mitigate the impact of rate adjustments on our most vulnerable customers. Total disbursement expected to exceed $8 Million (MM) • Partnered with PG&E and the state to distribute more than $2.5 MM in California Arrearage Payment Program (CAPP) funds from the state to assist customers financially impacted by COVID-19 • Maintained CCCE’s “A” credit rating in S&P’s cycle credit review. For the first time, S&P outlined the possibility of an upgrade to “AA” status as CCCE continues demonstrating fiscal prudence • Developed the Treasury function to deliver higher returns on cash balances and reserves by contracting an external investment manager (RBC) and directly investing in treasury-indexed products • First CCA to successfully migrate billing and accounts receivables functions; 380,000+ PG&E meters moved to a leading provider, Calpine, that delivers a wide range of data and reporting functions • Expanded risk management function by adopting best practice of segregation of duties, developing new risk reporting, and leveraging new modeling tools
• Launched two key initiatives – a Power Purchase Agreement (PPA) Prepay and a Financial & Billing Data Platform – that will deliver savings, strengthen finances, and provide customer insights • Increased net position balance to $212.6 MM as of July 30, 2022, and implemented rate adjustments to successfully navigate unprecedented volatility Addressing Climate Change By Decarbonizing the Electric Grid • Delivered four renewable generation projects for customers:
o Coso project is providing 66.3 MW of geothermal energy/11% of CCCE’s demand o Slate solar plus storage project, one of California’s first and largest integrated solar plus storage projects, is providing 67.5 MW of solar generation and 135 MWh of storage, serving approximately 4% of CCCE’s demand
o Casa Diablo IV project, the first new CA geothermal project in 30 years, is providing 7 MW of energy/1% of CCCE’s demand using advanced binary closed loop technology o The Mountain View wind project came online six months early and is delivering 33.3 MW of energy/3% of CCCE’s demand
• Collaborated with other CCAs through CC Power to execute two renewable geothermal projects to meet CCCE’s Firm Clean Resources procurement requirement o Ormat will develop a portfolio of projects providing CCCE up to 22.38 MW o Open Mountain Energy will provide CCCE 2.42 MW
• Executed four energy storage agreements for locally sited energy storage that provides industry standard lithium ion and long duration vanadium flow technology • Established a partnership with Depcom Power, LLC to explore and develop up to 25 MW of small-scale turnkey energy storage projects across CCCE’s service area 171 of 193
4 FY 2021/22 KEY ACCOMPLISHMENTS
Addressing Climate Change Through Electrification and Innovation • Disbursed $2.85 MM in incentives for electric vehicles (EVs), electric bikes, EV charging equipment and installation, reducing an estimated 1,800 metric tons of GHG emissions • Reserved $1.25 MM of funding for eight electric school buses across the CCCE service area and promoted an innovated leasing structure allowing school districts to quickly transform their fleets • Reserved $4.2 MM total for publicly accessible DC Fast Chargers for communities in San Luis Obispo County ($1.2 MM) and Santa Barbara County ($3 million). • Reserved $1.7 MM total for Level 2 charging equipment for communities in San Luis Obispo County ($680,000) and Santa Barbara County ($1.05 MM)
• Reserved $1.25 MM to purchase all electric heavy-duty equipment, including refuse haulers, streetsweepers and a transit bus
• Reserved nearly $800,000 in funding to incentivize affordable developers to build approximately 700 all-electric affordable housing units
• Disbursed $625,000 of incentives to electrify CCCE agricultural customer’s operations, from equipment to vehicles
• Awarded $640,000 in grants to support six regional planning, implementation, and education initiatives in our Member Agencies
• Provided Member Agencies over $240,00 to support 22 EV charging stations with 44 ports and 30 new light duty electric vehicles
• Enrolled approximately 80 contractors working in the CCCE service area to participate in an innovated “mid-stream” home electrification program throughout the CCCE service area • Executed a $2 MM financing agreement with the County of Santa Cruz to facilitate the purchase and installation of emergency backup generation for critical operations • Launched a Member Agency Services initiative to engage the unique needs of CCCE’s 33 Member Agencies, including regional working groups and regional collaborations Engaging With Customers
• Achieved a high enrollment rate – 97% of the 449,5000 eligible customer meters in the service area • Successfully enrolled 7,000 new customers in the City of Buellton • Successfully partnered with the City Council of Atascadero, supporting their decision to join CCCE • Expanded the innovative Farmworker Outreach Program into the southern service area • Developed and adopted an Underserved Communities Outreach and Engagement Plan, defining impacted communities and strategies to promote CCCE benefits and programs to all customers • Developed a 5-Year Impact Report, highlighting accomplishments of Central Coast Community Energy, including enrollment, energy programs, long-term renewable energy contracts, lower generation rates, and public participation through agency meetings and outreach • Post-COVID, deepened in-person engagement with key customers and regional organizations 172 of 193
5 STRATEGIC OUTLOOK: 2022-2027
Power Supply Procurement
To achieve measurable reductions in GHG emissions, CCCE Boards approved renewable energy procurement strategy designed to reach 60% of retail demand by 2025 and 100% by 2030. CCCE procurement strategy has been to enter long-term fixed-price contracts – Power Purchase Agreements or PPAs - with developers for storage and renewable energy power plants. This strategy, implemented over several years, has resulted in a weighted average cost of power well below market prices. The COVID-19 pandemic and subsequent supply chain challenges, combined with significant increases in power prices, led to delays in startup and to requests for contract renegotiation. While CCCE is working to resolve these challenges, the growth in global demand for renewable energy power plants and storage projects signals prices and component availability will remain challenging until supply chains expand.

CCCE is responding by accelerating plans to deploy up to 100 MW in small-scale (1-5 MW) energy storage projects throughout its service areas. The new tax credit in the Inflation Reduction Act (IRA) will lower the effective cost of the projects. In the long term, CCCE may expand physical ownership of assets.

CCCE is exploring expanding the suite of tools it uses to supply load. While CCCE’s market (non-PPA) activities have traditionally focused on buying physical power at fixed prices, staff may explore financial tools that could reduce risk and diversify its portfolio.

Rate Design And Outlook
Utilizing cost-based ratemaking has two key advantages: passing through CCCE’s own costs and giving CCCE the flexibility to customize its rate structures to optimize customer need and financial stability. In order to avoid utilizing rate adders and likely needing to pursue frequent adjustments as a result of the volatile energy markets, the Southern California Edison territory customers will remain on IOU-minus rates for CY 23. In the next rate-setting cycle, CCCE intends to run a COS study that explicitly models cost across the entire service area and explore setting unified rates for PG&E and SCE. 173 of 193
6 Regulatory Outlook
CCCE is continuing to engage California’s policymakers and regulatory bodies to shape policy and regulations such that they can support and facilitate CCCE’s mission of a decarbonized grid and the goals adopted by the Policy Board. CCCE is investing in a professional lobbyist firm for additional and purposeful support during this period of unprecedented transformation in our industry and on California’s grid.

To meet its aggressive carbon emission reduction goals, California must see significant increases in renewable generation and energy storage within the next five years. The time is now, and the regulatory landscape should not become the roadblock to ensuring this transition can move forward. Technical and economic complexities of this transition are reflected in the increasing renegotiation of core policies governing the electricity sector, especially those responsible for grid reliability and greenhouse gas reduction planning. CCCE’s engagement in policymaking forums will help design the policies governing the future grid in ways that support CCCE’s mission, while informing CCCE resource procurement decisions based on evolving compliance needs and market frameworks.

As California’s policy framework evolves, CCCE will also work to ensure that the jurisdiction and authority of CCCE’s Boards are protected. CCAs are still a relatively new stakeholder in the electricity sector, and their expansion across California has required regulators to rethink how they design programs and plan implementation of state policy goals. CCCE will work to shape future policymaking in ways that support state policy goals while preserving the integrity and unique strengths of the CCA model.

CCCE will pursue these goals in both the regulatory and legislative arenas through a combination of individual advocacy, access to additional policy tools, and strategic collaboration with other stakeholders from across the energy sector. CCCE’s aggressive clean energy goals and proactive investment in new clean resources have already enabled staff to provide policymakers with insight into cutting-edge issues facing the grid. CCCE’s policy engagement in the next five years will enable CCCE to continue that leadership and use the insights it produces to move the entire sector forward.

STRATEGIC OUTLOOK: 2022-2027
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7 STRATEGIC OUTLOOK: 2022-2027
Evolving Financial Architecture
STRATEGIC OUTLOOK: 2022-2027
CCCE has grown considerably from its startup days. It now serves over 430,000 customer meters, collects $400+ MM in revenue, processes over 2,400 vendor invoices, and disburses millions of dollars in grants. As such, the need to evolve and grow its financial architecture has increased. Over the next 2 years, CCCE will plan to automate its financial capabilities, increase the use of data and analytics, explore deploying an Enterprise Resource Planning (ERP) system, and continue expanding its treasury function. These measures will optimize cash management, improve budgeting and planning, increase efficiency, reduce staff workloads, and deliver customer insights which can enhance the customer experience.

Accelerating Climate Solutions
CCCE’s diverse service area requires strategic engagement with Member Agencies, legislators, customers, community organizations, and underserved communities to ensure all customers can access effective and impactful Energy Programs. CCCE will utilize innovative approaches to provide education, access, and support for customers to electrify their lives, affordably while helping to grow the local economy.

CCCE is investing $16 MM of new spend to build on the success of previous years’ Energy Programs. each year for the next five years. As CCCE achieves its goal of a decarbonized electric grid, the strategic push to electrify everything maximizes the benefits of a decarbonized grid by reducing GHG emissions in the transportation, building, and agricultural sectors.

The FY22/23 Energy Programs build upon federal and state transportation incentives by stacking local incentives for electric vehicles while investing significantly in publicly accessible and fleet charging infrastructure and utilizing third-party implementation services. CCCE is expanding its transportation electrification programs to reach additional customer segments, including medium and heavy-duty fleet owners. Future transportation electrification program developments will be informed by regional priority setting and planning to ensure investments are maximized and community needs are met.

CCCE will continue expanding efforts around building electrification through strategic partnerships like the TECH Clean California initiative while looking for opportunities to further catalyze market transformation and climate action. Expanded broadband opportunities, leveraged customer data, and increased customer engagement will enable CCCE to explore demand response and load mitigation efforts through deployed devises.
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8 Revenue
• Demand Forecast: Total retail load is estimated at 5,235 GWh in 2023, including all the Southern California Edison Service areas that joined in 2021-22
• Rates for customers in the PG&E service territory: Starting January 2023, rates are forecast to decrease by 1c/kWh across the board. This results in rates of 10 c/kWh for Residential customers and a range of 9 c/KWh to 11 c/kWh for commercial and agricultural customers. These represent competitive rates 13% to 21% below PG&E’s current forecast of its 2023 rates • Rates for customers in the SCE service territory: SCE customers will be served with rates that are a discount of 2% versus SCE’s 2023 rates.
• Uncollectible: Estimated at approximately 1.75% of operating revenue. For 2023, an additional

1.25% was budgeted as a potential reduction in Reserve Fund contributions. This reflects the elevated level of receivables that CCCE, like utilities nationwide, is experiencing.

Expense
• Power Supply Forecast: Estimated at 5,561 GWH, or 106.2% of retail sales to account for transmission and distribution system losses
• Power Supply Cost: Driven by Energy and Resource Adequacy. The energy cost component including eligible renewable credits is estimated at $345 MM, or 90.6% of the total. Resource Adequacy component is estimated at $35.6 MM, or 9.2% of the total • Energy Programs: CCCE projects $16 MM in new spend on energy programs. This includes $2.2 MM in Agriculture Electrification, $4.6 MM in the Electrify Your Ride program, $2 MM in the Electric Bus program and $1.5 MM in the New Construction Electrification Program Risks And Upside/Downside
• Market Prices: Price increases in the energy and RA markets represent significant downside risk to this forecast. Price decreases represent potential upside to this forecast • Regulatory Risk: Changes in RA or procurement requirements and regulations represent significant downside risk to this forecast
• Supply Chain & PPAs: Further supply chain challenges could delay the projects CCCE expects to come online in late 2022 and in 2023. This represents downside risk to the forecast • Opt-Outs: While CCCE strives to deliver competitive rates, it faces competition from IOUs and retailers who can provide incentives or products CCCE currently does not. These competitors target revenue-generating customers, representing downside risk to this forecast.

FY22/23 BUDGET DRIVERS, ASSUMPTIONS & RISKS
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9 FY22/23 BUDGET DRIVERS, ASSUMPTIONS & RISKS
• Inflation: Increases in prices and a tight labor market could make it more expensive for CCCE to complete projects than currently forecast. The budgeted contingency for Staffing and Support mitigates but does not eliminate this downside risk to the forecast • Treasury: A rising interest rate environment benefits CCCE’s cash management activities and represents potential upside to this forecast
Reserve Fund
• At the end of FY 21/22, excess balances in the UPS Fund and uncommitted funds in the Program Fund will be combined with the existing Rate Stabilization Fund to form a single Reserve Fund Staffing and Support Services
Staffing
Staff propose to implement a 5% Cost of Living Allowance (COLA) for employees. To keep y/y expense flat at $9.2 MM, employees will be moved up in their existing salary bands Data Manager & Utility Service Fees
Combined spend for CCCE’s billing, account receivable, and billing data services will decrease $0.8 MM y/y to $4.9 MM. This reflects savings negotiated in the move to a single Data Manager Technical Consulting
Specialized consulting services for a wide range of areas, reflecting staff vacancies and new endeavors such as energy storage, increased $1.1 MM y/y to $1.5 MM Contingency
For the first time, a $1.1 MM contingency was incorporated in CCCE’s budget. This will help cover inflationary costs and unexpected increases – reducing the need for midyear requests Legal Support
Legal Expenses to support current and anticipated litigation increased $0.8 MM. This includes expenses related to CCCE’s PPA disputes
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10 PROJECTED CY 2023 RATES
• CCCE rates for the PG&E service area are projected to roll back 1 c/kWh from current levels. This delivers competitive rates 13%-21% below PG&E’s current projections of its 2023 rates • CCCE rates for the SCE service area will remain at 2% below SCE’s current projected rates • Rates are expected to be finalized by the IOUs in the November-December 2022 timeframe.

Should markets move significantly or regulatory shifts impose new costs, CCCE may have to modify these projected rates in December 2022
CUSTOMER CLASS CCCE Current Rates
Projected CCCE
2023 Rates
Projected PG&E
2023 Rates
Difference Between Projected PG&E 2023
Rates And Projected CCCE 2023 Rates
RES 0.12 0.10 0.13 -16%
SM COM 0.13 0.11 0.13 -17% MED COM 0.11 0.10 0.12 -21%
LG COM 0.11 0.09 0.10 -13%
AGR 0.11 0.10 0.11 -13%
SL 0.11 0.09 0.11 -16%
PROPOSED CCCE VS PG&E 2023 ERRA FORECAST
RATE GROUP CUSTOMER CLASS Projected CCCE 2023
Rates
Projected SCE 2023
Rates
Difference Between Projected SCE 2023 Rates
And Projected CCCE 2023 Rates
DOMESTIC RES $0.092 $0.094 -2%
TOU-GS-1 SM COM $0.092 $0.094 -2%
TOU-GS-2 MED COM $0.092 $0.094 -2%
TOU-GS-3 LG COM $0.078 $0.080 -2%
TOU-8 LG COM $0.070 $0.071 -2%
TOU-PA-2 MED AG $0.076 $0.077 -2%
TOU-PA-3 LARGE AG $0.063 $0.064 -2%
Street Lighting SL $0.048 $0.049 -2%
Traffic Control TC $0.074 $0.075 -2%
PROPOSED CCCE VS SCE 2023 ERRA FORECAST
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11 CY 2023 CY 2024 CY 2025
Revenues 436 447 406
Costs
388 354 361
16 16 16
Cost of Energy
Energy Programs
Staffing and Support Services 24 25 25
Total Costs 428 395 402
Net Position 8 52 4
PG&E Rate Adder (c/Kwh) 2 2 0
End of Year Reserve Fund 187 234 239
End of Year Reserve Fund as % of Revenues 43% 52% 59%
CCCE Pro Forma 3-Year Financial Forecast ($ MM)
FY 22/23 Y/Y Change
Energy Programs: Community Programs
Electrify Your Ride 4.6 1.5
Agriculture Electrification 2 1.6
Electric Bus 2 1
Energy Programs: Member Agency Programs
Charge Your Fleet 1.25 1.25
Staffing and Support Services: Top 5 Expenditures
Compensation & Benefits 9.3 0.0
Data Manager 2.8 -1.0
IOU Service Fees 2.1 0.2
Legal 1.8 0.8
Technical Consultants 1.5 1.1
CCCE Pro Forma: Select Key Items ($ MM)
3-YEAR STRATEGIC FORECAST
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12 • To provide greater clarity, only line items above $0.5 MM were included in this year’s presentation • Energy Program spend represents new direct program investment; it does not include approximately $1.85 MM of internal Energy Program support
• Energy prices remain volatile and there is significant downside risk to the forecast • Due to the difference between CCCE’s Fiscal Year (October – September) and Rate Year (January-December), there is a small (<$5 MM) difference in Cost of Energy between Rate Year 2023 and FY22/23.

However, the underlying cash flows are the same

LINE ITEM BUDGET NOTES
Aggregate Cost of Energy - RA, Energy, PPA $377,918,806.77 Data Manager $2,793,200.00
Service Fees - IOU $2,100,000.00
Advertising $500,000.04
Contingency $1,100,000.00
Subscriptions $611,062.14
Legal $1,844,660.20
IT Consulting $593,469.00
Other Consultants $563,000.00
Technical consultants $1,541,093.00
Employee welfare $1,086,405.60
Retirement plan contributions $707,508.36
Salaries and wages $7,042,640.36
Energy Programs $15,992,012.04 Direct Spend On Programs Bad Debt Allowance $7,500,000.00
Total $425,650,061.49
Key Staffing and Support Expenditures >
$0.5 MM
CCCE FY 2022/23 Budget
FY2022/23 BUDGET
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13 Staff augmentation with consultants, new initiatives requiring technical expertise, litigation, and a new contingency are the key drivers of changes to the budget for Staffing and Support Services.

Category Budget Total Y/Y Change (Non-Energy) Key Drivers $1,541,093 $1,126,221
$1,100,000 $1,095,418
$1,844,660 $882,660
$593,469 $571,085
$350,768 $311,836
$307,600 $304,068
$2,100,000 $206,560
$269,305 $189,666
$563,000 $163,956
$399,996 $110,577
$500,000 $150,016
$148,876 $148,876
$95,441 $78,668
$116,630 $74,450
$120,000 $45,000
$390,301 $34,665
$74,629 $33,773
$120,300 $32,949
$45,000 $25,000
$30,000 -$20,000
$84,000 -$112,750
$611,062 -$579,586
Technical consultants
Contingency
Legal
IT Consulting
Insurance
Communications consultants
Service Fees - IOU
Small equipment & software
Other Consultants
Rent
Advertising
Travel
Dues & Subscriptions
Human resources and payroll
Legislative
Industry memberships and dues
Business meals
Conferences & prof
development Director's Fee Website
Required Mailings
Subscriptions
Data Manager $2,793,200 -$980,800
+$1.1 MM Technical Consultants
Staffing and Support Services
Ligitation Expenses
New Financial Data Platform & Staff Augmentation
Anticipated increases in Cyber, E&O, O&D; RFPs planned Spring 2023 Customer satisfaction survey, translation services, marketing consultants Service Area Expansion and estimated SCE fees
IT costs moved out to departments, new subscriptions, inflation Recruiting agencies
Potential expansion to 2nd floor of 70 Garden Court
Increased public outreach
Return to pre-COVID travel, bottom-up by Divisions vs top-down from Finance IT costs moved out, inflation, multiple small adds
Increasing recruiting advertising
Professional representation Multiple adds to increase engagement and outreach across service area and region More on-site and in-person Board/CAC/Staff meeting More in-person events, professional development to increase staff capacity Increased in-person Board meetings Website rebuild costs wind down Fewer enrollment campaigns
IT expenses split to divisions; reallocation of expenses from omnibus Subscription accounts New Data Manager Contract Savings
Total $3,892,307
FY22/23 BUDGET – Y/Y Staffing and Support Services
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14 LONG-RANGE FORECAST ASSUMPTIONS & RISKS
Revenue
• Energy sales in kWh are projected to increase steadily over the 4-year period, reflecting the addition of Atascadero and small load growth of 0.4% in 2025 and 2026 • Energy sales in dollars are expected to decline 9% in 2025 and a further 5% in 2026, reflecting the pass-through of lower power supply costs via COS Rates and lower contributions to the Reserve Fund in 2025
• A new COS study will be launched in late 2023 to set rates for 2025 and beyond. Staff will explore unified rates across PG&E and SCE service areas in that study Power Expenses
• Power supply costs for CCCE are currently forecast to stabilize and decline over time as Power Purchase Agreements (PPAs) come online. Market energy prices are expected to remain volatile throughout the period. A new Resource Adequacy regulatory regime represents additional downside risk to the forecast
Reserve Fund
• The Reserve Fund will increase over the next 2 years to 52% of revenues, before becoming 64% of revenues in 2026. The increase in percentage is due to the projected increase in revenues – not new rate increases. This may set the stage for future rate reductions Risks And Upside/Downside
• The Year 2-4 forecasts should be viewed as indicative guides based on the best information available today. As the past 3 years have demonstrated, markets have made a regime shift – markets are in an inherently more volatile and complex environment than before • The uncertainty in power & natural gas market prices, regulatory requirements, supply chains and the macroeconomic environment are all downside risks to this forecast • Market stabilization, reductions in inflation and labor market tightness, and favorable regulatory decisions represent potential upside to this forecast
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15 All projections are based on current market prices and hedge ratios. There is considerable downside risk to the forecast given market and regulatory volatility.

Revenues decline as the PG&E adders are eliminated, but the decline is somewhat offset by increases in load from the addition of Atascadero and small organic load growth.

CY 2023 CY 2024 CY 2025 CY 2026
Revenues 436 447 406 385
Costs
388 354 361 337
16 16 16 16
Cost of Energy
Energy Programs
Staffing and Support Services 24 25 25 25
Total Costs 428 395 402 378
Net Position 8 52 4 7
PG&E Rate Adder (c/kWh) 2 2 0 0
End of Year Reserve Fund 187 234 239 246
End of Year Reserve Fund as % of Revenues 43% 52% 59% 64% CCCE Pro Forma 4-Year Financial Forecast ($ MM)

LONG-RANGE PRO FORMA
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16 ABOUT CCCE
In March 2017, the County Board of Supervisors from Monterey, San Benito, and Santa Cruz counties as well as City Councils in sixteen local communities established the Joint Powers Authority, originally called Monterey Bay Community Power. In December 2018, CCCE Policy Board approved the inclusion of the Cities of San Luis Obispo and Morro Bay to the agency. In December 2019, the JPA was further expanded to include the Cities of Arroyo Grande, Carpinteria, Del Rey Oaks, Goleta, Grover Beach, Guadalupe, Paso Robles, Pismo Beach, Santa Maria, Solvang, and the County of Santa Barbara. In 2020, The Board approved to change the agency name to Central Coast Community Energy and further voted to add the City of Buellton. In 2022 the City of Atascadero joins as the 34th member. CCCE is committed to reducing greenhouse gas emissions through local control of renewable electricity generation provided at competitive rates and the implementation of innovative energy programs that facilitate the electrification of the transportation and built environments. CCCE promotes long-term electric rate stability and energy security while reducing reliance on fossil fuels and stimulating the local economy. 184 of 193
17 CCCE MEMBERSHIP ENROLLMENT
2017
• CCCE established as Monterey Bay Community Power (MBCP) • Implementation Plan certified by the CPUC
Mar 2018
• Phase 1 enrollment launched - Commercial customers
Jun 2018
• Policy Board appoints the Community Advisory Council (CAC) July 2018
• Phase 2 enrollment launched - Residential customer & NEM • New 100% eligible renewable service offering, MBprime launched Dec 2018
• Cities of San Luis Obispo and Morro Bay join JPA
Dec 2019
• Cities of Arroyo Grande, Carpinteria, Del Rey Oaks, Goleta, Grover Beach, Guadalupe, Paso Robles, Pismo Beach, Santa Maria, Solvang and Santa Barbara County join JPA
Jan 2020
• Phase 3 enrollment launched - Enrollment of the Cities of San Luis Obispo and Morro Bay
Jan 2021
• Phase 4 enrollment launched - Enrollment of 100,000 customers in Del Rey Oaks, Paso Robles, Pismo Beach, Grover Beach, Arroyo Grande, Santa Maria, Guadalupe, Solvang and Northern Santa Barbara County 185 of 193
18 CCCE MEMBERSHIP ENROLLMENT cont.

Oct 2021
• Phase 5 enrollment launched - Enrollment of customers in Carpinteria, Goleta, and Southern Santa Barbara County
Jan 2022
• Phase 6 enrollment launched - Enrollment of customers in Buellton Jan 2024
• Expected - Phase 7 enrollment launched - Enrollment of customers in Atascadero
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19 OUR BOARDS
CCCE is governed by the Policy Board and the Operations Board. Upon adoption of the 5th Amendment to the Joint Powers Agreement, each Board will be comprised of 18 seats representing the 34 Member Agencies. Both Boards will invite non-seated members to participate in meetings as non-voting members. Policy Board Members are elected officials from CCCE member communities and Operations Board Members are appointed executives leading the member cities and counties.

The Policy Board formed the CCCE Community Advisory Council comprised of 15 members appointed from member communities.
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20 2022 POLICY BOARD
Chair
Steve McShane
City of Salinas
Vice Chair
Das Williams
County of Santa Barbara
Director
Yvette Brooks
City of Capitola
Director
Anna Velazquez
City of Soledad
Director
Dolores Morales
City of Hollister
Director
Amy Tomlinson
City of Pacific Grove
Director
Mary Adams
County of Monterey
Director
Jan Marx
City of San Luis Obispo
Director
Donna Meyers
City of Santa Cruz
Director
Francisco Estrada
City of Watsonville
Director
Kollin Kosmicki
County of San Benito
Director
Mary Ann Carbone
City of Sand City
Director
Alice Patino
City of Santa Maria
Director
Ed Waage
City of Pismo Beach
Director
Bruce McPherson
County of Santa Cruz
Director
Claudia Orona
City of Solvang
Director
Wade Nomura
City of Carpinteria
County of San Benito
Director
Vice Chair
City of Salinas
Director
City of Carpinteria
Director Director
City of Solvang
County of Monterey
Director Director
City of Hollister City of San Luis Obispo
Director
Chair Director Director
Ed Waage
City of Pismo Beach
Director
Claudia Orona
City of Solvang
Director
Claudia Orona
Director
Dolores Morales
City of Hollister
Jan Marx
City of San Luis Obispo
City of Pismo Beach
Director
County of Santa Barbara City of
Director
Mary Adams
County of Monterey
Kollin Kosmicki
County of San Benito
ounty of Santa Barbara City of
Director
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21 2022 OPERATIONS BOARD
Chair
Carlos Palacios
County of Santa Cruz
Vice Chair
Jamie Goldstein
City of Capitola
Director
Jim Pia
City of Salinas
Director
Vibeke Norgaard
City of Sand City
Director
Charles McKee
County of Monterey
Director
Chip Rerig
City of Carmel- by- the Sea
Member
Ray Espinosa
County of San Benito
Director
Matt Huffaker
City of Santa Cruz
Director
Brent Slama
City of Soledad
Director
Rene Mendez
City of Watsonville
Director
Brett Miller
City of Hollister
Member
City of Carmel- by- the Sea
Director
Derek Johnson
City of San Luis Obispo
Director
Peter Imhof
City of Goleta
Director
James Lewis
City of Pismo Beach
Director
City of Goleta
the Sea County of Monterey
Director
Xenia Bradford
City of Solvang County of San Benito
Director
Mona Miyasato
County of Santa Barbara
Member
Jason Stillwell
City of Santa Maria
Chair
City of Capitola
Director
Director
City of Solvang
Vice Chair
Jamie Goldstein
City of Capitola
Director
Peter Imhof
City of Goleta
Director
Peter Imhof
City of Santa Cruz
Director
Rene Mendez
City of Watsonville
County of Santa Barbara
Director
Brent Slama
City of Soledad
Director
James Lewis
City of Pismo Beach
Director
James Lewis
County of Santa Cruz City of City of
Chip Rerig
City of
Director
Xenia Bradford
City of Solvang
City of
Director Director
Jim Pia
City of Salinas
Ray Espinosa
County of San Benito
City of Soledad
Member
City of
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22 2022 COMMUNITY ADVISORY COUNCIL
Chair
Seth Capron
County of San Benito
Vice Chair
Katie Davis
County of Santa Barbara
Member
Norman Groot
County of Monterey
Member
Richard Stedman
County of Monterey
Member
Michael Termini
County of Santa Cruz
Member
Stephen Snodgrass
County of Santa Cruz
Member
Jeff Byron
County of Monterey
Member
Dennis Osmer
County of Santa Cruz
Member
Wayne Norton
County of San Benito
Member
Brandon O’Rourke
County of San Luis Obispo
Member
Heather Allen
County of Santa Barbara
Member
John Hughes
County of Santa Barbara
Member
Bruce Severance
County of San Luis Obispo
Member
Kasia Markham
County of Monterey
Member
Norman Tuitavuki
County of Monterey
RESOLUTION NO. PB-2022-04

A RESOLUTION OF THE CENTRAL COAST COMMUNITY ENERGY POLICY BOARD OF DIRECTORS APPROVING CCCE’S FY 2022/23 OPERATING

BUDGET AND ADJUSTMENT TO ELECTRIC GENERATION RATES IN THE PG&E SERVICE AREA WITH RATES EFFECTIVE JANUARY 1, 2023, AND ENDING DECEMBER 31, 2024
WHEREAS, Central Coast Community Energy (“CCCE”) is a Joint Powers Authority (“JPA”) established and operated pursuant to California Government Code sections 6500 et seq. 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, CCCE is a community choice aggregator (“CCA”), as such term is defined in section 331.1 of the Public Utilities Code of the State of California (“Public Utilities Code”), that is a public agency, as such term is defined in the JPA law, which has implemented a CCA program pursuant to section 366.2 of the Public Utilities Code, and possesses the power to purchase and sell electric energy and enter related contracts for such purposes; and WHEREAS, pursuant to sections 3.3.1 and 3.3.3(f) of the Joint Powers Agreement, the Policy Board is responsible for setting electric generation rates; and WHEREAS, on June 16, 2021, at a duly noticed regular meeting, the Policy Board adopted Resolution PB-2021-05, establishing a cost-of-service rate design and approving proposed three-year PG&E service-area electric generation rates for formal adoption in the Fiscal Year 2021-2022 budget process to be implemented in January 2021 for the three-year period starting January 1, 2022, and ending December 31, 2024; and WHEREAS, on August 30, 2021, at a duly noticed special meeting, the Policy Board approved:
(1) a rate adjustment to the proposed PG&E service area cost-of-service rates to cover a revenue shortfall caused by escalating energy costs above those used to model costs of service and a projected reduction in revenue collection used for cost recovery, as well as (2) a one-time $30 bill credit for customers enrolled in the CARE, FERA, and/or medical baseline programs; and WHEREAS, on September 16, 2021, at a duly noticed regular meeting, the Policy Board adopted Resolution PB-2021-07, approving the proposed PG&E service area cost-of-service rates as adjusted by the Policy Board at its August 30, 2021; special meeting; and WHEREAS, on December 16, 2021, at a duly noticed special meeting, the Policy Board approved a second adjustment to the adjusted proposed PG&E service area cost-of-service rates and bill credits to address increased operational expenses including increased cost of energy and additional funding for programs and initiatives in connection with member agencies, specifically: (1) an increase of 2.0 cents per kWh over the previously approved rates for CY 2022 only, (2) an increase of 1.0 cents per kWh over the previously approved rates for CYs 2023 and 191 of 193
2024, and (3) an increased one-time $100 bill credit for customers enrolled in the CARE, FERA, and/or medical baseline programs; and
WHEREAS, the Board makes the following findings:

1. It is reasonable and in the best interest of customers to roll back the 1.0 cent per kWh rate increase in the PG&E service area for 2023-2024.

2. It is reasonable and in the best interest of customers to maintain rates of 2% below SCE for the SCE service area for 2023-2024.

3. These rates are for the provision of electrical service and therefore shall not be deemed charges for fees imposed as an incident of property ownership. Further, that California Constitution Art. XIII D does not apply to this resolution.

4. CCCE customers can opt out of CCCE service and receive service from an investor-owned utility or others competing in the market. These rates are not an imposition within the meaning of California Constitution Art. XIII C and therefore are not a tax.

5. This resolution and these rates are exempt from the requirements of the California Environmental Quality ACT (“CEQA”) pursuant to CEQA Guidelines, as they are not a “project” because they involve only the organizational and administrative activities of government that will not result in direct or indirect physical changes in the environment (14 Cal. Code Regs. § 15378 (b) (5)). Further, the resolution is exempt from CEQA, as there is no possibility that the resolution or its implementation would have a significant impact on the environment (14 Cal. Code Regs. § 15067 (b)(3)). CCCE will cause a Notice of Exemption to be filed as authorized by CEQA and CEQA Guidelines.

NOW, THEREFORE, THE CENTRAL COAST COMMUNITY ENERGY POLICY BOARD OF DIRECTORS DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

1. The Policy Board hereby adopts:
a. A reduction of 1.0 cent per kWh from the rates previously approved in Resolution PB-2021-09 for CYs 2023 and 2024 for customers in the PG&E service area; b. Continued rates of 2% less than SCE for CYs 2023 and 2024 for customers in the SCE service area; and,
c. The FY 2022/23 Operating Budget as proposed by staff.

2. The Policy Board directs staff to monitor and determine when market or industry conditions beyond the control of CCCE require that the approved rate schedule be modified between meetings of the Policy Board and/or before the end of the remaining 2-years of the current 3- year rate period.
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3. In the event of a fiscal emergency or significant shift in market conditions where the fiscal stability of CCCE, its credit rating, or financial outlook are in danger of being downgraded, the Policy Board delegates to the Chief Executive Officer the authority to adjust the approved rates between meetings of the Policy Board when needed to achieve goals set by the Boards.

4. Whenever emergent or market conditions require the CEO to adjust rates between meetings of the Policy Board, the CEO shall place a report on the agenda of the next regular Policy Board meeting explaining the adjustment and the reasons for the adjustment and requesting that the Policy Board ratify the actions of the CEO. All actions heretofore taken by the officers, employees, and agents of CCCE with respect to the matters set forth above are hereby approved, confirmed, and ratified.

PASSED AND ADOPTED this twenty second day of September 2022, by the following vote:

AYES:

NOES:

ABSENT:

Chair, Steve McShane
Attest:

Board Clerk, Heather Vowell
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Central Coast Community Energy (3CE) Policy BoardSeptember 22, 2022

Central Coast Community Energy (3CE) Policy Board
September 22, 2022