Agenda packet — Central Coast Community Energy (3CE) Operations Board, January 11, 2023

Regular Meeting of the Operations Board of Directors
Wednesday, January 11, 2023
10:30 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 Operations Board of Directors meeting at: https://3cenergy.hylandcloud.com/203agendaonline/Meetings/Search?dropid=4

2. The CCCE Board Room remains open. If you attend the CCCE Operations Board of Directors meeting in person:
a. You will be required to (i) wear a mask during the meeting and (ii) maintain appropriate social distancing, i.e., maintain a 6-foot distance between yourself and other individuals. b. Additional seating with audio of the CCCE Operations Board of Directors 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 email [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 Operations Board of Directors meeting but wish to make a comment on a specific agenda item, you may please submit your comment as set out below. The timing of public comment shall be at the discretion of the Chair. Options for public comment are as follows:
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 Tuesday before the meeting. All comments received after 5:00pm on the Tuesday 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/82380649701
Or join by phone:

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

US: +1 669 900 6833 or +1 669 219 2599
Enter this Webinar ID Number: 823 8064 9701 when prompted. Please note there is no Participant Code, you will just hit # again after the recording prompts you.

You will be placed in the meeting as an attendee; when you are ready to make a public comment if joined by computer audio please Raise your Hand; and by phone please push *9 on your keypad.

If you have anything that you wish to be distributed to the Board please provide 15 copies and hand them to a member of CCCE staff 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
. Corrections and Additions
The Board Clerk will announce agenda corrections and proposed additions of emergency, urgency, or continued items, which will be acted on by the Board as provided in Sections 54954.2 of the California Government Code.
. Public Comment on the Consent Agenda and Matters Not Listed on the Agenda The public may provide comments on the Consent Agenda or 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 it for a future meeting. Speakers are limited to 3 minutes each.

CONSENT AGENDA

1. Approve Minutes from December 14, 2022 Meeting of the Operations Board of Directors (Action Item)

2. Consider Finding, Pursuant to AB 361 and in order for the Operations Board of Directors to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Operations Board of Directors has Reconsidered the Circumstances of the State of Emergency; and the Monterey County Health Officer Continues to Recommend Social Distancing Measures for Meetings of Legislative Bodies (Action Item)

3. Approve and Authorize the CEO to Execute Amendment No. 1 to Agreement with Frontier Energy to Add $150,000 for Additional Energy Program Services for a Total Not to Exceed Amount of $389,378.00 (Action Item)

4. Approve and Authorize the CEO to Amend the Legal Services Agreement with Meyers Nave for Energy Product Litigation and/or Transaction Legal Services to Add $780,000 for a Not to Exceed Contract Amount of $1,380,000 (Action Item)

5. Treasurer's Report (Information Only)

REGULAR AGENDA

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

7. CEO Report (Discussion Item)

8. Discuss the Return to Pre-Pandemic Brown Act Remote Meeting Policies as the Governor's Declaration of Emergency Ends on February 28, 2023 (Discussion item)

9. Appointment of 2023 Operations Board of Directors Chair and Vice Chair (Action Item) Adjournment

MINUTES
The meeting was called to order at 1:01pm with 12 members attending via teleconference in compliance with AB361 and a quorum established.

Directors Present: Espinosa, Huffaker, Imhof, Johnson, T. Lewis, McCloud, Miller, Pia, Wood, Vidro, Vice Chair Goldstein, Chair Palacios
Directors Absent: McKee, Miyasato (arrived 1:05pm), Norgaard, Rerig, Stillwell Clerk announced that there were no corrections or additions to the agenda The Chair opened the public comment period for the consent agenda and items not listed on the agenda.

There were no public comments.

The Chair closed the public comment period.

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

ACTION: The Motion Carried with a roll call vote: 13/0/4 AYES: Espinosa, Huffaker, Imhof, Johnson, T. Lewis, McCloud, Miyasato, Miller, Pia, Wood, Vidro, Vice Chair Goldstein, Chair Palacios
NOES: None
ABSENT: McKee, Norgaard, Rerig, Stillwell
Special Meeting of the Operations Board of Directors
Wednesday, December 14, 2022
1:00 PM
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940
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1. Approved Minutes from the November 9, 2022 Meeting of the Operations Board of Directors

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

3. 2023 Operations Board of Directors Meeting Calendar (Information Only)

REGULAR AGENDA

4. Approve and Authorize the CEO to Execute an Energy Storage Agreement with Gem A-CAES LLC, and any necessary ancillary documents, with a Term of 25 Years in an Amount Not to Exceed $775,000,000. (Action Item)
The Chair opened the public comment period.

There were no public comments.

The Chair closed public comment period.

MOTION: Moved by Director Imhof seconded by Director Pia to approve ACTION: The Motion Carried with a voice vote: 9/3/4/1
AYES: Espinosa, Huffaker, Imhof, McCloud, Miller, Miyasato, Pia, Vidro, Chair Palacios NOES: Johnson, T. Lewis, Vice Chair Goldstein
ABSENT: McKee, Norgaard, Rerig, Stillwell
ABSNT: Wood
Adjourned at 2:00pm
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Staff Report Item 2
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Consider Finding, Pursuant to AB 361 and in order for the Operations Board of Directors to Continue Meeting Remotely, that the COVID-19 Pandemic State of Emergency Declared by Governor Newsom is Still In Effect; The Operations Board of Directors has Reconsidered the Circumstances of the State of Emergency; and the Monterey County Health Officer Continues to Recommend Social Distancing Measures for Meetings of Legislative Bodies (Action Item) DATE: January 11, 2023
RECOMMENDATION:

This recommends the Operations Board (“Board”) find, pursuant to AB 361 and for the Board to continue meeting remotely, that the COVID-19 pandemic State of Emergency declared by Governor Newsom is still in effect; the Board has considered the circumstances of the State of Emergency; and the Monterey County Health Officer continues to recommend social distancing measures for meetings of legislative bodies.

BACKGROUND:

On September 16, 2021, Governor Newsom signed AB 361. This legislation amends the Brown Act to allow Brown Act bodies to meet via teleconference during a proclaimed state of emergency in accordance with teleconference procedures established by AB 361 rather than under the Brown Act's more narrow standard rules for teleconference meetings.

DISCUSSION/ANALYSIS:

AB 361 provides that if a state or local health official recommends social distancing, a legislative body may meet remotely after September 30, 2021, provided that the legislative body finds 1) the Governor's proclaimed state of emergency is still in effect; 2), the legislative body has 3 of 77
reconsidered the circumstances of the state of emergency, and 3) either the Monterey County Health Officer continues to recommend social distancing measures for meetings of legislative bodies or the state of emergency continues to directly impact the ability of the members to meet in person.

The Monterey County Health Officer has recommended social distancing measures for meetings of legislative bodies, so the Board were able to meet remotely the first time after September 30, 2021. To continue meeting remotely, the Boards must make the findings outlined above.

Accordingly, staff recommends making the appropriate findings. This action will be required every 30 days to keep meeting remotely. A special meeting may be necessary for that purpose.

FISCAL IMPACT:

There is no fiscal impact associated with this action.

CONCLUSION:

The Board’s consideration and finding that the COVID-19 pandemic State of Emergency declared by Governor Newsom is still in effect; the Board has reconsidered the circumstances of the State of Emergency; and the Monterey County Health Officer continues to recommend social distancing measures for meetings of legislative bodies will allow the Board to continue meeting remotely under the procedures established by AB 361. 4 of 77
Staff Report Item 3
TO: CCCE Operations Board of Supervisors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Approve and Authorize the CEO to Execute Amendment No. 1 to Agreement with Frontier Energy to Add $150,000 for Additional Energy Program Services for a Total Not to Exceed Amount of $389,378.00 (Action Item) DATE: January 11, 2023
RECOMMENDATION:

This recommends that the Operations Board authorize the CEO to execute Amendment No. 1 to the Standard Services Agreement (the “Agreement”) with Frontier Energy (“Frontier”) to add $150,000 to support energy program technical assistance services for a total not to exceed of $389,378 and no additional time.

BACKGROUND:

On May 11, 2022, the Operations Board authorized the CEO to execute an Agreement with Frontier Energy Inc. (“Frontier”) to provide technical assistance and program implementation services for Electric Vehicle (“EV”) charging projects at commercial and multifamily customer sites. These services support CCCE’s Electrify Your Ride Program by supporting multifamily and commercial property customers on EV infrastructure, helping customers assess their property to support EV chargers, and aiding customers with contractor selection. The original Agreement has a total not to exceed amount of $239,378.00 over a term ending September 30, 2023.

DISCUSSION/ANALYSIS:

Under the existing Agreement, Frontier services are limited to multifamily properties and commercial customers with public-facing facilities. CCCE staff has identified a need to expand the Agreement’s scope of work so that, under staff’s direction, Frontier can provide services to additional commercial customers - including agricultural customers that may not have public-facing facilities. 5 of 77
The proposed Amendment No. 1 will allocate $150,000 to the Agreement from identified funds in the Energy Programs Budget to support the FY 22/23 Ag Electrification Program. Additionally, it will allow Frontier to reach a broader portion of CCCE’s customers, such as agricultural customers and other commercial customer segments. This will allow Frontier to support additional programs implemented under the FY 22/23 Energy Programs Portfolio and accelerate commercial sector transportation electrification by expanding access to technical assistance.

FISCAL IMPACT:

The proposed Amendment No. 1 will increase the not to exceed amount of the Agreement by $150,000 for a total not to exceed amount of $389,378 over the full term of the Agreement.

The proposed $150,000 allocation is budgeted as part of CCCE’s FY 22/23 Agriculture Electrification Program which includes technical assistance funds.

CONCLUSION:

Approval of Amendment No. 1 of the Frontier Agreement allows CCCE to improve and expand upon transportation electrification technical assistance and program implementation efforts in FY 22/23.

ATTACHMENTS:

1. Amendment No. 1 to Agreement with Frontier
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Amendment No. 1: To Agreement Between Frontier Energy Inc. and CCCE for technical assistance and program management services
1 AMENDMENT NO. 1

TO SERVICES AGREEMENT BETWEEN FRONTIER ENERGY AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No. 1 to the Services Agreement (“Agreement”) which was effective on [date] is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“CCCE”) [VENDOR] (“CONTRACTOR”); (CCCE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, CCCE and CONTRACTOR entered into a Standard Services Agreement (the “Original Agreement”) on May 11, 2022, to provide technical assistance and program management services to support CCCE transportation electrification programs; WHEREAS, CCCE has identified a need for CONTRACTOR to provide technical assistance and program management services to support additional customer segments; WHEREAS, CCCE seeks to add $150,000 from the Energy Programs Budget to the Original Agreement in support of this technical assistance and program management services; and
WHEREAS, the Parties wish to amend the Original Agreement as follows.

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

1. Amend Section 2. Payment Provisions to read:

2.1 CCCE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B, subject to the limitations set forth in this Agreement. The total amount payable by CCCE to CONTRACTOR under this Agreement shall not exceed the sum of $389,378.00.

2. Amend the seventh bullet in Exhibit A: Scope of Work, Section 3.2 to read:
 Adherence to state and local building and safety codes

3. Amend the second paragraph of Exhibit A: Scope of Work, Section 3.2 to read:
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Amendment No. 1: To Agreement Between Frontier Energy Inc. and CCCE for technical assistance and program management services
2 Confirm the number and types of vehicles the property owner expects to charge, and the times of day people will like charge based on use case (customer, employee, resident, commuter, fleet) and recommend charger types (Level 2 or DCFC) and a maximum number of EVSE.

4. Amend Exhibit A: Scope of Work, Task 5 heading to read:

Task 5: Implement Commercial EVSE Projects and Energy Program Incentive Payments

5. In Exhibit A: Scope of Work, add Task 5.4 to read:

5.4 Identify opportunities for property owners to leverage incentives and low-interest financing for EVSE and fleet vehicles.

6. Replace Exhibit B with Exhibit B-1, attached and incorporated herein.

IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

Vendor Central Coast Community Energy
BY:__________________________________ BY:______________________________________ Title:_____________________________ Tom Habashi, CEO
Date: ____________________________ Date: ____________________________ Vendor Approved as to Form
BY:__________________________________ BY:___________________________________ Title:_____________________________ Brian Kimball General Counsel Date: ____________________________ Date: ____________________________ Approved as to Financial Terms
BY:______________________________________
Jaya Bajpai, Chief Financial Officer
Date: ____________________________
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3 Exhibit B-1: Payment Terms
Frontier Energy will be paid on a time and materials basis to complete the tasks outlined in Exhibit A: Scope of Work. The total not to exceed amount of this Agreement is $389,378.00. The budget is inclusive of travel costs and materials. It does not include printing and distribution of marketing materials or translation services. Without impacting the total not to exceed amount, task budgets may be reallocated between tasks without a contract amendment upon written approval by CCCE.

Not-to-Exceed Budget $389,378.00
Hours Cost
Task 1. Site Assessment 259 $47,749

1.1. Identify existing ZEV deployment

1.2. Produce a heat map

1.3. Identify property types and DACs

1.4. Reporting
Task 2. Engagement and Enrollment 463 $75,704

2.1 Provide outreach tools

2.2 Develop brochure

2.3 Email and social media communications

2.4 Identify outreach opportunities

2.5 Create and maintain a “project tracker”

2.6 Coordinate with CCCE regarding outreach.

Task 3. Technical Assistance 1,020 $175,500

3.1 Develop and implement an intake process

3.2 Conduct feasibility studies; remote and on-site
assessments; provide recommendations

3.3 Facilitate installer quotes
Task 4. Multifamily Property Participation 133 $18,602

4.1 Assist Multifamily property owners to apply for
CCCE incentives opportunities

4.2 Identify further opportunities for property owners
Task 5. Implement Commercial EVSE Projects and
Incentives 238 $36,795

5.1 Assist in procurement process

5.2 Update Project Tracker

5.3 Project completion tasks and case studies

5.4 Identify incentives and support applications
Task 6. Administration 187 $34,978

6.1 Kick-off meeting

6.2 Set up project management tool

6.3 Set up communications platform

6.4 Conduct meetings and progress reporting

6.5 Annual and final reports
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4 Rates for key staff are in the table below Rates shall remain in effect for the term of this Agreement.

Adjustments to staff rates shall require written notice of the change at least 30 days prior to the date the change is to become effective and prior written approval by CCCE.

Title Hourly Rate
Sr. Manager $250
Sr. Program Consultant/Project Manager $153
Sr. Program Coordinator $112
Practice Lead (Grade 40) $250
Electromobility Engineer (Grade 22) $160
Planner (Grade 21) $155
Senior Energy Analyst $225
Electrical Engineer $205
Engineer $225
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Staff Report Item 4
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Approve and Authorize the CEO to Execute a Second Amended and Restated Legal Services Agreement with Meyers Nave Riback Silver, LLP for Energy Product Litigation and Transaction Legal Services to Add $780,000 for a Not to Exceed Contract Amount of $1,380,000 (Action Item)
DATE: January 11, 2023
RECOMMENDATION:

This recommends the Operations Board of Directors authorize the CEO to execute a Second Amended and Restated Legal Services Agreement (“Restated Legal Services Agreement”) with Meyers Nave Riback Silver LLC (“Meyers Nave”) for litigation and transactional support for various matters adding $780,00 for a total amount not to exceed $1,380,000.

BACKGROUND:

CCCE engaged Meyers Nave in June 2021 for pre-litigation support for various matters under an initial Legal Services Agreement with an indefinite term and a not to exceed amount of $100,000 per fiscal year. At the Operations Board meeting in January 2022, that initial Legal Services Agreement was amended for a total amount not to exceed $500,000.

DISCUSSION/ANALYSIS:

Meyers Nave, with their 3CE engagement led by Deborah Fox, has provided specialized legal services in support of matters of significant importance, including claims related to rate setting, disputes arising from agreements for resource adequacy and other energy products, and negotiation of contracts. CCCE anticipates the need for these services to continue through 2023 as matters progress through discovery and trial in the litigation matters, and toward final negotiations in the contract matters.

FISCAL IMPACT:

The anticipated costs for FY 2022-23 are within the amounts anticipated for litigation and other legal costs in the 2022-23 Adopted Budget.
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CONCLUSION:

The Board’s approval of the proposed Second Amended and Restated Legal Services Agreement enables Meyers Nave to further support CCCE in significant litigation and contract matters.

ATTACHMENT(S):

1. June 2021 Meyers Nave Engagement (redacted)

2. Meyers Nave Restated Legal Services Agreement

3. Meyers Nave Second Restated Legal Services Agreement 12 of 77
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I will be the principal in charge of representing your interests. This agreement retains the legal services of our law firm and not of a particular attorney. Hourly rates are subject to reasonable change, usually at the beginning of each year.

3. Retainer. The Firm will not require a retainer to commence services related to this matter. However, the Firm reserves the right to require a retainer in the future if it determines that circumstances warrant.

4. Disbursements and Expenses. In addition to hourly fees, we may incur out-of-pocket expenses related to your representation. Our Statement of Fee and Billing Information, which sets forth the details of our disbursement and expense policy, is attached as Attachment 2.

5. Billing and Payment Responsibilities. We will send monthly statements which are due within 30 days of receipt. If you have any questions about an invoice, please promptly telephone or write me so that we may discuss these matters. Our Statement of Fee and Billing Information sets forth the details of our fee and billing policy.

6. Termination of Services. You may terminate our services at any time by written notice. After receiving such notice, we will cease providing services. We will cooperate with you in the orderly transfer of all related files and records to your new counsel.

We may terminate our services at any time with your consent or for good cause. Good cause exists if (a) any statement is not paid within 60 days of its date; (b) you fail to meet any other obligation under this agreement and continue in that failure for 15 days after we send written notice to you; (c) you have misrepresented or failed to disclose material facts to us, refused to cooperate with us, refused to follow our advice on a material matter, or otherwise made our representation unreasonably difficult; or (d) any other circumstance exists in which ethical rules of the legal profession mandate or permit termination, including situations where a conflict of interest arises. If we terminate our services, you agree to execute a substitution of attorneys promptly and otherwise cooperate in effecting that termination.

Termination of our services, whether by you or by us, will not relieve the obligation to pay for services rendered and costs incurred before our services formally ceased.

7. Insurance. During the term of this engagement, this law firm shall take out and maintain general liability and property damage insurance in amounts not less than $1,000,000; professional errors and omissions insurance, in amounts not less than $2,000,000 per occurrence; and $4,000,000 aggregate, which insurance may not be canceled or reduced in required limits of liability unless at least ten days advance written notice be given to you.

8. No Guarantee of Outcome. Any comments made by us about the potential outcome of this matter are expressions of opinion only and are not guarantees or promises about any outcome or results.
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9. Dispute Resolution. In the event you become dissatisfied with any aspect of our relationship, we encourage you to bring such concerns to our attention immediately. If we are unable to resolve any dispute, either arising out of or in connection with this Agreement or relating to the services performed by our firm or any of its attorneys, to our mutual satisfaction, our firm will first comply with any mandatory dispute resolution procedures that may apply to any such dispute.

10. Document Retention. In the course of the Firm’s representation of 3ce, you may provide us with and we may obtain documents that are relevant to the representation. Some of those documents may be important to you and so that there is no confusion we find that it is useful at the inception of the representation for us to communicate our Document Retention Policy. Meyers Nave is committed to using less paper and eliminating unnecessary copies of documents. Documents of Record can be either hard copies or digital, regardless of the form they took originally when created or received by the Firm. Whenever it is proper and practicable, the Firm prefers Documents of Record (official version) to be in a digital format. Further, if record is stored electronically, then paper copies may be deemed duplicative and may be purged. This helps us manage information, helps the environment and helps us control costs. The materials pertaining to this matter belong to you and you may access them or have duplicates provided to you at any time during your representation with the exception of certain Meyers Nave Firm and accounting information. At the conclusion of this matter, no further representation will be provided and we recommend that you make arrangements to retrieve all original documents.

It is the Firm’s general policy that we maintain records for a period of seven (7) years after conclusion of the matter, although due to certain practical considerations that is not always possible. Additionally, while we take steps to ensure that all records are held in strict confidence and maintained in a secure location, we cannot guarantee that something beyond our control will not occur resulting in damage to client records.

Thus, if in the course of our representation you provide us with original documents that you consider important or desire to keep, we recommend that, first, you inform us in writing that the documents are important. And second, we ask that you take immediate possession of such documents upon the conclusion of our representation. If we do not hear from you, we will generally retain only the documents and materials pertaining to this matter which we designate as vital for a period of seven (7) years. After which such documents will be destroyed unless, before that time, you notify us in writing that you wish to take possession of them.

11. Entire Agreement; Full Understanding; Modifications in Writing. This letter contains our entire agreement about our representation. Any modifications or additions to this letter agreement must be made in writing.
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12. Joint Representation. Our firm maintains of counsel agreements with certain legal specialists. Because these individuals are deemed independent contractors under the applicable provisions of the tax laws and not employees of our firm, it is necessary that you consent to dual representation by our firm and the specialist in the event the matter which you have engaged us to handle requires the use of that specialist. This arrangement has no effect whatsoever on the cost of your legal services, rather it is an ethical requirement that we disclose this fact and that you consent. You are consenting by signing this letter.

13. Disclosure of Public Entity Representation. Our firm represents many public agencies in California, Nevada and Arizona. Since 1986, we have represented over seven hundred public clients, including numerous cities, redevelopment agencies, special districts, counties and other public entities, and we are accepting new engagements all the time. It is virtually inevitable that we will work on projects from other clients having different governmental or political objectives, beliefs or views from 3ce.

14. Disclosure of Work for Bloom Energy and the Counties of San Benito, San Luis Obispo and Santa Barbara. Please be advised that Meyers Nave represents Bloom Energy in connection with certain CEQA and land use matters. As well, Meyers Nave currently represents the counties of San Benito, Monterey, San Luis Obispo, and Santa Barbara (collectively referred as “the Counties”) in other separate matters related to eminent domain, labor and employment, public finance, and complex judicial coordinated litigation. We understand the Counties plus Santa Cruz County and Monterey County, are also members of 3ce. We do not currently represent Santa Cruz County nor do we represent Monterey County, however, it is possible we may represent them in the future.

To the best of Firm's knowledge, however, it does not believe the interests of 3ce and Bloom Energy, nor 3ce and the Counties are adverse to each other in this rate setting matter.

Likewise, the Firm does not believe that its assisting Bloom Energy in the CEQA and land use matter, and the Firm’s continuing representation of the Counties in other separate matters willhave any adverse effect on or impact Firm's proposed representation of 3ce and vice versa.

Nonetheless Firm makes this disclosure in order to fulfill Firm's duties under the California Rules of Professional Conduct.

If facts come to light in the future which suggest an actual or foreseeable conflict or adverse effect due to this engagement, Firm will advise 3ce, Bloom Energy, and the Counties immediately.

To avoid the potential for any possible conflict of interest to arise in the future as to its representation of either 3ce, Bloom Energy or the Counties, Firm intends to conduct itself on these terms:
a. The scope of the engagement for 3ce will not involve any issues related to the matters about which we are advising Bloom Energy and the Counties. We have not 26 of 77
represented Bloom Energy and the Counties on any matter related to this engagement, and the proposed representation appears entirely unrelated to any matter for which we represent Bloom Energy and the Counties.
b. Firm will not disclose to Bloom Energy and the Counties any confidential information Firm has acquired or acquires at any time in the present or future as a result of Firm's attorney-client relationship with 3ce. Firm will likewise not disclose to 3ce any confidential information Firm acquires as a result of Firm's attorney-client relationship with Bloom Energy and the Counties.
c. Firm recognizes that Firm is obligated to exercise independent professional judgment on behalf of 3ce in any matter in which Firm represents 3ce, unaffected to any extent by Firm's then current or potential future relationships with Bloom Energy and the Counties. Firm has examined its relationship with Bloom Energy and the Counties, and has concluded that it will not affect Firm's ability to fully represent 3ce as to the Scope of Service covered by this Agreement.

Firm makes this disclosure in an abundance of caution and in the interest of fully satisfying Firm's ethical obligations.

Needless to say, these acknowledgments do not permit the Firm to represent another client in opposing the specific matter for which you engage us without your specific written consent.

You may wish, and we encourage you, to consult legal counsel regarding the effect of these Disclosures called out above.

We would request that you review this letter carefully and, if it is consistent with your understanding of our respective responsibilities, please so indicate by returning a signed copy of this letter to me at your earliest convenience. Again, we thank you for allowing us the opportunity to serve as your lawyers.

Very truly yours,
Deborah J. Fox
DJF:KG
Enclosures
c: Conflicts Department
Billing Department
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These terms are accepted and agreed to as of the date of this letter.

By:

Central Coast Community Energy (3ce)
Tom Habashi
CEO
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ATTACHMENT 2

MEYERS NAVE

STATEMENT OF FEE AND BILLING INFORMATION
The following is a general description of our fee and billing policies. These general policies may be modified by the specific engagement letter or agreement to which this summary is attached.

Professional Fees. Our fees for professional services are based on the fair value of the services rendered. To help us determine the value of our services, our attorneys and paralegals maintain time records for each client and matter. Our attorneys and paralegals are assigned hourly rates which are based on years of experience, specialization, training and level of professional attainment. We adjust our rates periodically (usually at the beginning of each year) to take into account inflation and the increased experience of our professional personnel. To keep professional fees at a minimum, legal work that does not require more experienced attorneys will be performed, where feasible, by attorneys with lower billing rates. Of course, the quality of the work is paramount, and we do not sacrifice quality to economy.

Before undertaking a particular assignment, we will, if requested, provide you with a fee estimate to the extent possible. Estimates are not possible for some matters, however, and cannot be relied on in many others because the scope of our work will not be clear at the outset. When a fee estimate is given, it is only an estimate; it is not a maximum or minimum fee quotation. The actual fee may be more or less than the quoted estimate.

Retainer. Our normal practice is to require a retainer to cover a portion of the anticipated attorneys’ fees and costs. Any retainer will be placed in the firm’s trust account. At the conclusion of our services, we will return to our client any unapplied retainer, after deducting payment for charges billed or to-be-billed for services and any remaining out-of-pocket expenses.

Billing And Payment Procedures. Unless other arrangements are made at the time of the engagement, invoices will be sent monthly. Invoices for outside services exceeding $100 may be billed separately. Occasionally, however, we may defer billing for a given month or months if the accrued fees and costs do not warrant current billing or if other circumstances would make it appropriate to defer billing.

Our invoices contain a brief narrative description of the work performed; if requested, the initials of the attorney who performed the work will appear on the statement. The invoice will include a line item reflecting in-house administrative costs. The firm’s in-house administrative costs include duplicating, facsimile charges, telephone charges, E-mail, postage, mileage and other administrative expenses.
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The firm will be reimbursed for all outside services incurred in the course of providing legal services to our client(s). Outside services will include, but are not limited to, all third-party expenses, delivery charges, travel expenses, outside research services, filing fees, expert witness and expert consultant fees.

If you have any questions regarding an invoice, the Finance Director or Executive Director is available to answer your questions. For any unresolved matters, the Bar Association has an arbitration mechanism that can be used to resolve such matters.

Late Payments. Statements for services are payable upon presentation and, in all events, within thirty (30) days after receipt. Occasionally a client has difficulty in making timely payments. . In the unlikely event we are required to institute legal proceedings to collect fees and costs, the prevailing party will be entitled to reasonable attorneys’ fees and other costs of collection.
5249995.1
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January 5, 2022
Via Electronic Mail
Robert M. Shaw
COO and General Counsel
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, California 93940
E-Mail: [email protected]
Re: Restated Legal Services Agreement
Dear Mr. Shaw:

Thank you for retaining Meyers Nave (“Meyers Nave” or “the Firm”) to perform legal services in connection with Central Coast Community Energy (“3ce” or “the Client”). We appreciate the opportunity to serve as your lawyers and look forward to working with you.

This letter provides out Restated Legal Services Agreement concerning the legal services we will provide and our fee arrangements for those services. Please read this entire agreement before signing and returning it to us.

1. Scope of Engagement. We will provide the legal services reasonably required to represent and advise you in connection with the administrative process and any resulting litigation related to 3ce’s rate setting along with potential energy products litigation and/or transactional issues. By written acknowledgment Meyers Nave can provide additional legal services for additional matters that you request of us, provided we agree to perform that additional work.

2. Fees and Personnel. As compensation for our services, our fees will be based on our current standard billing rate for the personnel performing services under this agreement at the time such services are rendered. The total amount of fees and costs incurred for legal services under this Agreement shall not exceed $500,000 (“the NTE Cap”) without the written approval of Client, it being understood by Client that the NTE Cap does not necessarily represent the total fees to complete all of the matters under the Agreement because of the nature of such projects. Our standard billing rates for attorneys and paralegals are attached as Attachment 1.
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I will be the principal in charge of representing your interests. This agreement retains the legal services of our law firm and not of a particular attorney. Hourly rates are subject to reasonable change, usually at the beginning of each year.

Termination of our services, whether by you or by us, will not relieve the obligation to pay for services rendered and costs incurred before our services formally ceased.

12. Joint Representation. Our firm maintains of counsel agreements with certain legal specialists. Because these individuals are deemed independent contractors under the 34 of 77
applicable provisions of the tax laws and not employees of our firm, it is necessary that you consent to dual representation by our firm and the specialist in the event the matter which you have engaged us to handle requires the use of that specialist. This arrangement has no effect whatsoever on the cost of your legal services, rather it is an ethical requirement that we disclose this fact and that you consent. You are consenting by signing this letter.

14. Disclosure of Work for Bloom Energy and the Counties of San Benito, San Luis Obispo and Santa Barbara. Please be advised that Meyers Nave represents Bloom Energy in connection with certain CEQA and land use matters. As well, Meyers Nave currently represents the counties of San Benito, San Luis Obispo, and Santa Barbara (collectively referred as “the Counties”) in other separate matters related to eminent domain, labor and employment, public finance, and complex judicial coordinated litigation. We understand the Counties, including Monterey County and Santa Cruz County, are also members of 3ce. We do not currently represent Monterey County or Santa Cruz County, however, it is possible we may represent them in the future.

To the best of Firm's knowledge, however, it does not believe the interests of 3ce and Bloom Energy, nor 3ce and the Counties are adverse to each other in this rate setting matter.

Nonetheless Firm makes this disclosure in order to fulfill Firm's duties under the California Rules of Professional Conduct.

If facts come to light in the future which suggest an actual or foreseeable conflict or adverse effect due to this engagement, Firm will advise 3ce, Bloom Energy, and the Counties immediately.

To avoid the potential for any possible conflict of interest to arise in the future as to its representation of either 3ce, Bloom Energy or the Counties, Firm intends to conduct itself on these terms:
a. The scope of the engagement for 3ce will not involve any issues related to the matters about which we are advising Bloom Energy and the Counties. We have not represented Bloom Energy and the Counties on any matter related to this engagement, and the proposed representation appears entirely unrelated to any matter for which we represent Bloom Energy and the Counties.
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b. Firm will not disclose to Bloom Energy and the Counties any confidential information Firm has acquired or acquires at any time in the present or future as a result of Firm's attorney-client relationship with 3ce. Firm will likewise not disclose to 3ce any confidential information Firm acquires as a result of Firm's attorney-client relationship with Bloom Energy and the Counties.
c. Firm recognizes that Firm is obligated to exercise independent professional judgment on behalf of 3ce in any matter in which Firm represents 3ce, unaffected to any extent by Firm's then current or potential future relationships with Bloom Energy and the Counties. Firm has examined its relationship with Bloom Energy and the Counties, and has concluded that it will not affect Firm's ability to fully represent 3ce as to the Scope of Service covered by this Agreement.

Firm makes this disclosure in an abundance of caution and in the interest of fully satisfying Firm's ethical obligations.

Needless to say, these acknowledgments do not permit the Firm to represent another client in opposing the specific matter for which you engage us without your specific written consent.

You may wish, and we encourage you, to consult legal counsel regarding the effect of these Disclosures called out above.

Very truly yours,
Deborah J. Fox
DJF:KG
Enclosures
c: Conflicts Department
Billing Department
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These terms are accepted and agreed to as of the date of this letter.

By:

Central Coast Community Energy (3ce)
Tom Habashi
CEO
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MEYERS NAVE
2021 Billing Rate Schedule

TITLE RATE
Senior Principal $550
Principal $500
Of Counsel $475
Senior Associate $395
Associate $350
Law Clerk $225
Senior Paralegal $225
Litigation Support Specialist $225
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ATTACHMENT 2

MEYERS NAVE

Our invoices contain a brief narrative description of the work performed; if requested, the initials of the attorney who performed the work will appear on the statement. The invoice will include a line item reflecting in-house administrative costs. The firm’s in-house administrative costs include duplicating, facsimile charges, telephone charges, E-mail, postage, mileage and other administrative expenses.
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The firm will be reimbursed for all outside services incurred in the course of providing legal services to our client(s). Outside services will include, but are not limited to, all third-party expenses, delivery charges, travel expenses, outside research services, filing fees, expert witness and expert consultant fees.

Late Payments. Statements for services are payable upon presentation and, in all events, within thirty (30) days after receipt. Occasionally a client has difficulty in making timely payments. . In the unlikely event we are required to institute legal proceedings to collect fees and costs, the prevailing party will be entitled to reasonable attorneys’ fees and other costs of collection.
5039235.1
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1 6
9 10
Compiled Financial Statements
Compiled Budgetary Comparison Schedule
Budget Variance Commentary
Financial Dashboard
Table of Contents

TREASURER REPORT
Fiscal Year to Date
As of September 30, 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 September 30, 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
November 9, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 42 of 77
Current assets
Cash and cash equivalents
Held for working capital $ 38,500,000
Held for reserves 111,596,869
Cash and cash equivalents 150,096,869
Accounts receivable, net of allowance 47,107,600
Accrued revenue 18,161,946
Loan receivable 292,002
Other receivables 10,608,580
Prepaid expenses 308,419
Deposits 2,482,519
Restricted cash 294,000
Investments - held for reserves 33,434,369
Total current assets 262,786,304
Noncurrent assets
Deposits 23,182
Loan receivable 1,707,998
Capital assets, net of depreciation 219,319
Total noncurrent assets 1,950,499
Total assets 264,736,803
Current liabilities
Accrued cost of electricity 40,074,582
Accounts payable 1,589,211
Other accrued liabilities 1,996,024
User taxes and energy surcharges due to other governments 1,941,964 Total current liabilities 45,601,781
Noncurrent liabilities
Security deposits - energy suppliers 9,131,250
Total noncurrent liabilities 9,131,250
Total liabilities 54,733,031
Investment in capital assets 219,319
Restricted for security collateral 294,000
Unrestricted 209,490,453
Total net position $ 210,003,772

NET POSITION
As of September 30, 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 $ 399,159,960
Liquidated damages 11,153,500
Total operating revenues 410,313,460

OPERATING EXPENSES
Cost of electricity 372,365,695
Contract services 9,288,170
Staff compensation 6,089,226
General and administration 6,210,745
Depreciation 88,680
Total operating expenses 394,042,516
Operating income (loss) 16,270,944

NONOPERATING REVENUES (EXPENSES)
Interest and investment income 984,909
Grant revenue 2,759,460
Nonoperating revenues (expenses) 3,744,369
CHANGE IN NET POSITION 20,015,313
Net position at beginning of period 189,988,459
Net position at end of period $ 210,003,772
Twelve Months Ended September 30, 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 $ 398,426,283
Receipts from liquidated damages 2,401,875
Receipts from suppliers 11,219,952
Payments to suppliers for electricity (362,529,540)
Payments for other goods and services (15,129,128)
Payments for staff compensation (6,178,169)
Payments of taxes and energy surcharges to other governments (6,812,737) Net cash provided by operating activities 21,398,536

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Receipts from grantor 2,759,460

CASH FLOWS FROM CAPITAL AND RELATED

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

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 914,185
Purchase of investments (32,418,822)
Loan issued (2,000,000)
Net cash provided (used) by investing activities (33,504,637) Net change in cash and cash equivalents (9,347,754)
Cash and cash equivalents at beginning of year 159,738,623 Cash and cash equivalents at end of period $ 150,390,869 Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) $ 150,096,869
Restricted cash 294,000
Cash and cash equivalents $ 150,390,869
Twelve Months Ended September 30, 2022

STATEMENT OF CASH FLOWS

CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report. 4
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Operating income (loss) $ 16,270,944
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation expense 88,680
Provision for uncollectible accounts 2,309,127
(Increase) decrease in:

Accounts receivable, net (12,040,428)
Accrued revenue 1,849,150
Energy settlements receivable 7,856,108
Other receivables (9,674,074)
Prepaid expenses 1,251,830
Deposits (763,738)
Increase (decrease) in:

Accrued cost of electricity 11,425,158
Accounts payable 357,493
Other accrued liabilities 32,550
Customer rebate liabilities (147,594)
User taxes and energy surcharges due to other governments 483,330 Security deposits - energy suppliers 2,100,000
Net cash provided by operating activities $ 21,398,536

CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
Twelve Months Ended September 30, 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 September 30, 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
November 9, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 47 of 77
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 $ 359,103,000 $ 415,601,926 $ 56,498,926 116% $ 359,103,000 $ (56,498,926) -16% Less bill credit (3,085,000) (7,550,100) (4,465,100) 245% (3,085,000) 4,465,100 -145% Less uncollectible accounts (4,489,000) (6,191,849) (1,702,849) 138% (4,489,000) 1,702,849 -38% Revenue for damages - 11,153,500 11,153,500 n/a - (11,153,500) n/a Investment and miscellaneous income 516,000 1,044,352 528,352 202% 516,000 (528,352) -102% Total revenues and other sources 352,045,000 414,057,829 62,012,829 118% 352,045,000 (62,012,829) -18%

EXPENDITURES AND OTHER USES
Current Expenditures
Cost of energy 326,335,000 372,661,211 46,326,211 114% 326,335,000 (46,326,211) -14% Energy programs (incentives and grants) * 12,270,000 4,374,729 (7,895,271) 36% 12,270,000 7,895,271 64% Data manager 3,774,000 3,706,398 (67,602) 98% 3,774,000 67,602 2% Utility service fees 1,893,000 1,838,834 (54,166) 97% 1,893,000 54,166 3% Staffing 9,244,000 6,089,226 (3,154,774) 66% 9,244,000 3,154,774 34% Professional services 1,393,000 1,548,033 155,033 111% 1,393,000 (155,033) -11% Legal services 1,037,000 1,180,576 143,576 114% 1,037,000 (143,576) -14% Marketing and customer enrollment 943,000 718,813 (224,187) 76% 943,000 224,187 24% Other general & administration 1,625,000 1,836,016 211,016 113% 1,625,000 (211,016) -13% Total current expenditures 358,514,000 393,953,836 35,439,836 110% 358,514,000 (35,439,836) -10% Other Uses
Capital outlay 114,000 1,113 (112,887) 1% 114,000 112,887 99% Uninterruptible Power Supply expenditures 2,800,000 2,000,000 (800,000) 71% 2,800,000 800,000 29% Total other uses 2,914,000 2,001,113 (912,887) 69% 2,914,000 912,887 Total Expenditures and Other Uses 361,428,000 395,954,949 34,526,949 110% 361,428,000 (34,526,949) -10% Surplus (Deficit) $ (9,383,000) $ 18,102,880 $ 27,485,880 $ (9,383,000) $ (27,485,880) 293% Reserves at end of reporting period:

Held for Working Capital $ 38,500,000
Held for Reserves - Cash and Cash Equivalents 111,596,869 Held for Reserves - Investments 33,434,369
Total $ 183,531,238
* Energy program expenses reported above exclude approximately $5,000,000 encumbered for program year 2021/22. Expenses will be recognized when incurred.

CENTRAL COAST COMMUNITY ENERGY

BUDGETARY COMPARISON SCHEDULE
Twelve Months Ended September 30, 2022
See accountants' compilation report. 7
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CCA Program Surplus/(Deficit)
per budgetary comparison schedule: $ 18,102,880
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:

Subtract depreciation expense (88,680)
Add back capital asset acquisitions 1,113
Add back loans issued 2,000,000
Change in Net Position $ 20,015,313

REVENUES, EXPENSES AND CHANGES IN NET POSITION

CENTRAL COAST COMMUNITY ENERGY

BUDGET RECONCILIATION TO STATEMENT OF
Twelve Months Ended September 30, 2022
See accountants' compilation report. 9
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Budget Item YTD Variance Comment
Electric Sales Revenue 15.7% 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 14.2% 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 (34.1%) Staffing expenses are under budget due to the timing of new hires.

Professional Services 11.1% This category includes accounting, IT, technical and other consultants.

Legal Costs 13.8% This category includes outside legal costs for regulatory and energy procurement needs.

Marketing and customer enrollment (23.8%) Variance is mostly due to the lower than anticipated costs of recent customer enrollments.

Data Management Services (1.8%) These fees non-discretionary and are charged on a per customer basis.

Utility Service Fees (2.9%) These are PG&E and SCE fees charged on a per customer basis.

Other General & Administrative 13.0% This category includes occupancy costs, industry membership dues, and other general and administrative costs.

Energy and Related Programs (64.3%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items

CENTRAL COAST COMMUNITY ENERGY
October 1, 2021 through September 30, 2022
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-$4.7
$1.5
Act
Bud
$34.2
$28.3
-$20.0
-$10.0
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
$401.9
$354.6
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
$450.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual (T48/T8) 410 407 442 418 365 409 399 420 440 445 464 431 Budget 428 421 432 431 379 406 395 421 425 448 478 454
0 100
200
300
400
500
600

CUSTOMERS

SALES VOLUME
431 GWh

STD MARGIN
-$4.7M (-13%)
Δ in NET ASSETS
-$7.3M

REVENUE
$35.9M
Cumulative YTD Electricity Sales Cumulative YTD Direct Margin Fiscal Year Electricity Sales are $47.3M ahead of budget, Margin dollars are $5.9M above budget.

Data Definitions:

CUSTOMERS: From GridX invoice + Calpine.

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

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

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

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

CUSTOMERS
447,500
ACTIVE
September revenue if $35.9M accounts for
431 GWh in net retail consumption. This
comes in 23Gwh below budgeted volume.

Revenue includes a reduction for $7.5M in
Low Income Customer Credits. On the cost
side of this dashboard we are recognizing a
reduction of $8.7M in delayed damages due
from suppliers – these liquidated damages
are formally considered revenue, but are
presented here as cost of energy to better
align with budget expectations.

Preliminary Fiscal Year Revenue from retail
sales is $47.3M ahead of budget with
margin ahead by $5.9M.
32%
48%
20%
35%
48%
17%
Res
Com
Ag
YTD Month
33%
48%
19%
36%
47%
17%
Res
Com
Ag
YTD Month
Revenue $35.8
C.O.E. $40.2
OpEx $2.9
Net Income -$7.3
-13.2%

4.1%
Act
Bud
Margin $
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10 Return of Investments YTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

CASH AND CASH EQUIVALENTS
River City Bank - Money Market and
other Interest Earning Accounts
Funds Invested - Average Balance $ 171,000,000 $ 178,000,000 $ 172,000,000 $ 165,000,000 $ 168,000,000 $ 164,000,000 $ 160,000,000 $ 160,000,000 $ 152,000,000 $ 159,000,000 $ 71,000,000 $ 72,000,000 Gains/Losses/Interest $ 652,281 $ 34,009 $ 33,104 $ 32,526 $ 31,581 $ 31,077 $ 38,817 $ 47,244 $ 62,490 $ 77,791 $ 109,682 $ 81,231 72,729 Average APY 0.24% 0.22% 0.23% 0.23% 0.22% 0.28% 0.35% 0.47% 0.61% 0.83% 1.37% 1.21%

INVESTMENTS
River City Bank - Treasury-indexed products
Funds Invested - Average Balance - - - - - - - - - - 15,000,000 $ $ 25,000,000 Gains/Losses/Interest $ 95,601 - - - - - - - - - - $ 36,986 58,615 Average APY 2.96% 2.81%
RBC GAM / Principal Financal
Funds Invested - Average Balance - - - - - - - - - - 75,000,000 $ $ 75,000,000 Gains/Losses/Interest $ 236,341 - - - - - - - - - - 111,307 $ 125,034 Average APY 1.78% 2.00%
Benchmark - iShares ICE Short Treasury Index 0.34%

CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2021 through September 30, 2022
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Staff Report Item 7
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: CEO Report (Discussion Item)
DATE: January 11, 2023

ORANGE COUNTY VOTES TO LEAVE ORANGE COUNTY POWER AUTHORITY December 20, 2022, the Orange County Board of Supervisors voted 3-2 to withdraw from Orange County Power Authority (“OCPA”), the CCA serving Buena Park, Fullerton, Huntington Beach, and Irvine. The vote took place only one year after the County voted to join OCPA and prior to OCPA enrolling County residents, which was originally planned for November 2023.

The decision to leave follows several inquiries into OCPA’s management, transparency, and pricing – despite independent audits finding no business misconduct or irregularities. Following the vote, Supervisors noted concern with the opt-in statutory model and the role of government in providing electric service.

The City of Huntington Beach also met on December 20 and took a unanimous action requesting staff to set a study session in February 2023 to discuss options to withdraw entirely from OCPA. Additionally, the City of Irvine conducted a closed session meeting on December 29 to consider and provide direction regarding withdrawing from OPCA but reported no action.

The withdrawal of Orange County, and potential withdrawal of additional members, from OCPA member entities will likely have statewide implications for CCAs. CCCE is continuing to monitor the situation.

INVESTOR-OWNED UTILITY 2023 ELECTRIC GENERATION RATES
The Investor-owned Utilities, Pacific Gas & Electric (“PG&E”) and Southern California Edison (“SCE”), finalized their 2023 rates which went into effect January 1, 2023. Both IOUs are increasing their electric generation rates to reflect the increased market costs of energy. dŚĞ /ŶǀĞƐƚŽƌͲŽǁŶĞĚ hƚŝůŝƚŝĞƐ͕ WĂĐŝĨŝĐ 'ĂƐ Θ ůĞĐƚƌŝĐ ;͞W'Θ͟Ϳ ĂŶĚ ^ŽƵƚŚĞƌŶ ĂůŝĨŽƌŶŝĂ ĚŝƐŽŶ ;͞^͟Ϳ͕ ĐƌĞĂƐŝŶŐ ƚŚĞŝƌ ĞůĞĐƚƌŝĐ ŐĞŶĞƌĂƚŝŽŶ ƌĂƚĞƐ ƚŽ ƌĞĨůĞĐƚ ƚŚĞ ŝŶĐƌĞĂƐĞĚ ŵĂƌŬĞƚ ĐŽƐƚƐ ŽĨ ĞŶĞƌŐǇ͘ 53 of 77
Staff engaged NewGen Strategies & Solutions, an expert rate consulting firm, to compare CCCE electric rates with PG&E’s updated 2023 generation rates at the individual rate code level.

That comparison shows a typical CCCE customer could realize savings of 20%-40% (depending on rate class) versus PG&E generation. The sizable increase in PG&E’s generation rate reflects significantly higher market energy costs.

For the SCE service area, 3CE rates continue to be a 2% discount to SCE rates.

CUSTOMER SURVEY TO SUPPORT OUTREACH AND ENGAGEMENT
CCCE is beginning its first formal customer opinion research effort, launching a bilingual questionnaire that will be administered through interviews among a scientific representative sample of CCCE residential customers across our service area. The project includes professional data analysis and is designed to be compatible with similar research projects conducted by other California CCAs. The survey tool seeks to understand overall customer awareness and perceptions of CCCE and customer priorities in terms of rates, service offerings, and programs. CCCE will continue this formal research effort on a bi-annual basis to better measure customer satisfaction and track progress and change over time.

ATTACHMENT(S):

1. Customer Enrollment and Engagement Report

2. Update On FY 22-23 Community Energy Programs

3. Update On FY 22-23 Member Agency Services

4. Regulatory & Legislative Impact Update

5. CCCE Contracts < $100k
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Customer Enrollment and Engagement Report
November and December 2022
CEO Attachment January 11, 2023
Member Agency Services Meetings:

CCCE Member Agency staff held 1-on-1 meetings with
the cities of Scotts Valley, Guadalupe, Greenfield, San Juan Bautista, and Paso Robles in November and
December. The purpose of the meetings was to
introduce Judi Young as the primary contact person for
member agency staff; review the history of the member
agency participation in CCCE programs, cover what
funding is newly available and talk about what is coming in future months; discover member agency
electrification and GHG reduction goals, and how CCCE
might support those efforts.

A Quarterly Member Agency Staff Meeting was held in
December, introducing a new format to further
encourage participation and engagement including a
breakout session regarding customer care. Other topics
included news, events, and program launches. Twenty-nine staff members from 15 agencies across four counties participated.

The Building Electrification Working Group met on
November 17, and the Transportation Electrification
Working Group met on December 1.

CCCE additionally hosted a Zero Emissions Fleet
Transition discussion attended by staff members of all
transit agencies across all five counties.

Enrollment/Opt-Outs:

Total Opt-Out request for November 2022: 70
The reasons given by customers for opting out were as follows:

Rate of cost concerns – 28%
Decline to provide – 22%
Other – 19%
Dislikes being automatically enrolled – 18%
Service or billing concerns – 7%
Concerns about a government-run agency 4%
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90.01%

97.22%

93.36%

87.35%

94.66%

96.48%

94.90%

95.05%

97.15%

95.05%

96.81%

90.76%

90.05%

90.12%

95.81%

92.37%

96.43%

97.27%

92.61%

95.85%

93.14%

89.01%

98.35%

96.84%

87.20%

88.30%

95.55%

95.99%

94.68%

97.50%

95.97%

97.39%

95.60%

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

CARPINTERIA
CARMEL

CAPITOLA

BUELLTON

ARROYO GRANDE

82.00% 84.00% 86.00% 88.00% 90.00% 92.00% 94.00% 96.00% 98.00% 100.00% Percentage of eligible enollment as of December 1, 2022 56 of 77

91.91%

93.93%

88.23%

96.81%

96.22%

93.80%

94.38%

95.83%

82.33%

86.90%

96.88%

95.75%

97.50%

95.33%

98.73%

96.18%

98.54%

97.55%

94.29%

94.10%

93.50%

96.34%

99.54%

98.49%

97.02%

98.66%

86.83%

97.05%

95.86%

98.13%

97.40%

99.48%

97.88%

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%
Percent of eligible load served as of December 1, 2022
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Media Outreach
November 2022
Facebook
Followers: 1,857
Post Reach: 2.5K
Post engagement: 441
New page followers: 1
Link Clicks: 19
Top Performing Content: Do you know if you’re a Central Coast Community Energy customer? Q&A
Instagram
Followers: 836
Top Performing Content: The City of Pacific Grove EV
charging stations celebration
New Followers: 17
Facebook En Espanol
Followers: 182
Post Reach: 8
Post engagement: 1
New page followers: 0
Link Clicks: 0
Top Performing Content: Riverview Estates – New
Construction Electrification
Twitter
Followers: 1,082
Top Performing Content: The City of Pacific Grove EV
charging stations celebration
LinkedIn
Followers: 1,439
Top Performing Content: CalCCA announcement - California Community Choice Aggregators have reached over 11 Gigawatts in long-term contracts with new-build clean energy resources.

Earned media:

Downtown Santa Cruz library
Guest Commentary | Why the multi-use library project is vital for Santa Cruz Paso Robles unanimously approved to enter a new Memorandum of Understanding with CCCE since the inclusion of the City of Atascadero into the agreement.

Uniting the Central Coast for Action
December 2022
Social media engagement by platform:

Facebook
Followers: 1,869
Post Reach: 21,413
Post engagement: 470
New page followers: 5
Link Clicks: 40
Top Performing Content: Monday Motivation: Gabe
Ruiz received Key Accounts Certification
Instagram
Followers: 849
Facebook En Espanol
Followers: 182
Post Reach: 8
Post engagement: 1
New page followers: 0
Link Clicks: 4
Top Performing Content: Charge Your Fleet and Electrify Your Fleet programs launch
Top Performing Content: Rabbitbrush Ribbon-Cutting
New Followers: 16
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Twitter
Followers: 1,072
Top Performing Content: Rabbitbrush Ribbon-Cutting
LinkedIn
Followers: 1,491
Top Performing Content: Day of Service – Food Bank
Earned media:

New Construction Electrification Program
Rebates available in SLO for all-electric accessory dwelling unit SLO Tribune
KSBY
KCBX
New Times SLO (See bottom blurb)
NewsExplorer.net
San Luis Obispo Chamber of Commerce
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FY 22-23 CCCE Community Energy Programs
CEO Attachment January 11, 2023
Provided in this report is an update on FY 22-23 Community Energy Programs implementation activities.

Electrify Your Home Program
On October 3, 2022, CCCE staff launched the Electrify Your Home Program (EYH) with implementation support from a consultant, Energy Solutions. This residential electrification program provides incentives “midstream” to enrolled contractors who recommend and switch out gas-powered appliances in existing single and multi-family buildings with all-electric heat pump water heating and HVAC technologies. These incentives directly reduce the upfront cost for CCCE customers who make the switch to all-electric heat pump technology. In FY 22/23, CCCE budgeted $1.6 million for EYH.

Contractors enrolled in the statewide TECH Clean California (TECH) program also have access to no-cost workforce education and training focused on electrification design and specification, heat pump installation, building science, and soft skills in sales and marketing. As of December 22, 2022, there are 72 licensed contractors enrolled in the TECH program that serve part of CCCE’s service area.

The following table summarizes program performance as of December 22, 2022.

Approved & Paid Submitted Reserved Total
Single Family $99,900 $43,400 $51,200 $194,500
Multi-Family $- $- $45,000 $45,000
Total $99,900 $43,400 $96,200 $239,500
New Construction Electrification Program
On October 3, 2022, CCCE staff launched the New Construction Electrification Program (NCEP). This year’s iteration of NCEP provides affordable and farmworker housing developers, and homeowners building Accessory Dwelling Units (ADU), with incentives to build all-electric housing. Housing 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. Incentives will be provided on a per-unit basis and will be provided “downstream” to developers and homeowners upon successful completion of the project. In FY 22/23, CCCE has budgeted $1.5 million for NCEP.

As of December 22, 2022, staff have received and approved its first multi-unit application for FY 22/23.

The approved project is for a 25-unit low-income senior living project in Pismo Beach. CCCE has reserved $62,500 for the project. CCCE has also received three (3) applications, and reserved a total of $15,000, for all-electric ADU projects.
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Electrify Your Ride Program
On November 1, 2022, CCCE staff launched the third iteration of the Electrify Your Ride (EYR) Program.

Building off 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”. This year’s EYR program improved upon previous years’ programs with several design and implementation modifications that are being phased in and include the following new services and implementation changes:

Phase 1:
 Accept 1040 tax forms for income-qualified verification; eliminate all other forms of and processes for income qualification other than CARE/FERA.  Provide DCFC rebates for publicly accessible commercial customer sites.  Launch no-cost technical assistance “concierge” service for multifamily property owners and publicly accessible commercial customers.
 Improve and add new automated customer notification emails.

Phase 2:
 Procure and contract third-party program implementation services.  Integrate workforce development incentives to train or certify local contracts to install EVSE throughout CCCE service area.

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 $4.63 million with $2 million allocated for EV, Level 2 EV charger, and EV Readiness incentives, as well as $2 million for Level 3/DC Fast Charger incentives.

The following figures summarize program performance based on 237 applications received as of December 22, 2022.
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Figure 1 (above): Shows Electrify Your Ride funds distributed by County in FY 22/23.

Figure 2 (above): Shows Electrify Your Ride Program funds distributed by Measure type in FY 22/23. 62 of 77
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 estimated annual GHG emissions reductions (MTCO2e) by County resulting from reduced vehicle emissions under the Electrify Your Ride Program in FY 22/23. 63 of 77
Ag Electrification Program
On December 8, 2022, staff launched the fourth 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, tractors, utility vehicles, and other equipment. Incentives are provided “downstream” directly to the customer after proof of purchase and/or installation of equipment.

For FY 22/23 a total of $750,000 is available for agriculture equipment incentives. Like last year, applications for projects with the greatest estimated GHG emissions reduction as well as those submitted by small to medium sized businesses will be supported by the highest incentive levels.

Starting in mid-January, and conditional upon Operations Board approval of the Frontier Energy agreement amendment, the Ag program will offer a no-cost technical assistance “concierge” service and administer additional incentives for Level 3 or Direct Current Fast Charging (DCFC) infrastructure at eligible customer sites, totaling $1,250,000.

The following figure summarizes program performance based on five (5) approved applications as of December 22, 2022.

Figure 5 (above): Shows total funds reserved or distributed by Cnounty for the FY 22/23 AG Electrification program 64 of 77
FY 22/23 Community Energy Programs Launch Schedule
Community Energy Programs Proposed Launch
Electric Bus Program Q2
FY 22/23 Programs To-be-Launched
Electric Bus Program
The Electric Bus Program will launch in Q2 of FY 22/23. This Program will provide incentives to public schools, school districts, and businesses that offer farmworker transport services to help offset the cost of the purchase of an all-electric bus.
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FY 22-23 Member Agency Services
CEO Attachment January 11, 2023
Provided in this report is an update on FY 22-23 Member Agency Services implementation activities.

Reach Code Program
On October 3, 2022, CCCE staff launched the Reach Code Program with program implementation support from a consultant, TRC Engineers. This redesigned program offers stakeholder outreach support and provides no-cost technical assistance to help Member Agencies adopt and implement reach codes.

Support includes presenting to key stakeholders, answering technical questions, attending meetings, developing customized ordinances, reviewing staff presentations and reports, and developing implementation tools to help Member Agencies enforce their reach codes. The Reach Code Program includes recommended model codes for new construction electrification, electric vehicle charging infrastructure, and existing building electrification.

Since its launch, three Member Agencies have engaged in the program: the City of Watsonville, the City of San Luis Obispo, and the County of Monterey. CCCE is also supporting a regional reach code working group effort including the County of Santa Barbara and the Cities of Carpinteria and Goleta and being led by 3C-REN with support from Southern California Edison.

The following table summarizes program performance based on the three (3) Reach Code Program engagements as of December 22, 2022.

Member Agency Type of Reach Code (NC, EB, EV)
County of Monterey New Construction and Electric Vehicle City of Watsonville New Construction and Electric Vehicle City of San Luis Obispo Existing Buildings
Electrify Your Fleet Program
On December 15, 2022, CCCE staff launched the Electrify Your Ride (EYF) program. EYF provides incentives to Member Agencies to offset the cost of the purchase/lease of light-duty, medium-duty, and heavy-duty battery electric vehicles. These incentives are available as a post-purchase rebate or as a pre-purchase reservation.

Charge Your Fleet Program (CYF)
On December 15, 2022, CCCE staff launched the Electrify Your Ride (EYF) program. CYF is the complement to EYF and provides incentives to Member Agencies to offset the cost of the purchase and construction/installation of electric vehicle charging infrastructure. Charging stations may be either 66 of 77
public-facing or “behind the fence” and include Level 2 or Level 3 chargers. These incentives are available as a post-purchase rebate or as a pre-purchase reservation.

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 most recently met on October 27, 2022. Energy Programs staff presented an overview of FY 22-23 building electrification programs including the Reach Code, Electrify Your Home, and New Construction Electrification Programs. Staff from the City of Watsonville and County of Monterey provided updates on their CCCE grant-funded building electrification projects.

The Building Electrification Working Group will meet quarterly in 2023.

The Transportation Electrification Working Group met on December 1, 2022. CCCE Staff presented on the suite of CCCE transportation electrification programs planned for FY 22-23. The Transportation Electrification Working Group will meet quarterly in 2023.

FY 22/23 Member Agency Services and Initiatives Launch Schedule Member Agency Services and Initiatives Proposed Launch
Plan Your Fleet Program FY Q2
Broadband Access Initiatives FY Q2
FY 22/23 Programs To-be-Launched
Plan Your Fleet Program
The Plan Your Fleet Program (PYF) will provide no-cost technical assistance to help Member Agencies electrify their fleets. PYF will be supported by a third-party planning, design, and engineering consultant. The consultant (TBD) will deliver a broad scope of services to CCCE Member Agencies to accelerate fleet electrification and development of Member Agency electric vehicle charging infrastructure across the CCCE service area.

Broadband Access Initiative
CCCE’s Broad Band Initiative will collaborate with Member Agencies and regional economic agencies to support greater broadband access and deployment. CCCE will design and administer a program that will provide funding to Member Agencies for the purpose of studying, planning, or implementing broadband initiatives that will increase broadband access in CCCE’s service area, particularly in rural, underserved, and geographically isolated regions. Funding will be distributed geographically to reach a minimum of two counties and/or regions of CCCE’s service area.
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An Ad Hoc Committee (Broadband AHC) has been formed including Community Advisory Council members Heather Allen and Wayne Norton to provide recommendations to staff informing program design and help evaluate program applications. Staff and Broadband AHC members held a kick-off meeting on December 21, 2022. Staff will deliver a draft regional broadband research paper to the Broadband AHC in advance of its next meeting on January 12, 2023. 68 of 77
Regulatory and Legislative Update
CEO Attachment January 11, 2023
Regulatory
Integrated Resource Planning (IRP; Rulemaking.20-05-003) Issue
Integrated Resource Planning (IRP) is the California Public Utilities Commission’s (CPUC’s) greenhouse gas (GHG) reduction planning process. There have been two IRP cycles completed since the program was started in 2017, and both have resulted in resource procurement mandates for all LSEs in the IRP program. These mandates have been issued on an ad hoc basis as the Commission has seen fit, increasing resources prices, and causing uncertainty for LSEs to incorporate them into long-term procurement planning.

The structure of the mandates thus far has also inadvertently punished LSEs such as CCCE who have invested proactively in new resources by barring resource contracts signed before a certain date from being eligible to count towards these mandates. CCCE staff met with CPUC officials several times in the spring and summer of 2022 to discuss how these mandates have affected CCCE and suggest changes to the structure of future mandates that could reduce the perverse incentives created by the previous two. In September, the CPUC staff issued a Ruling seeking formal feedback on how to improve the IRP procurement program structure alongside a white paper detailing potential alternatives.

Impacts
The CPUC does not have direct jurisdiction over CCA procurement the way it does for IOUs. However, the CPUC has used its responsibility for achieving GHG reductions to justify ordering all load-serving entities participating in the IRP process (including CCAs) to procure extra resources if it finds the predicted system-wide trajectory lacking in GHG reductions and/or grid reliability. The first IRP cycle in 2017-2018 resulted in a CPUC mandate for 3,300 MW of extra procurement, with an additional 11,500 MW ordered in June 2021 to protect mid-term (2023-2026) grid reliability. CCCE’s assigned slice of those mandates was 57.4 MW and 291 MW respectively, and future IRP cycles could bring additional procurement mandates.

Status
CCCE and other CCAs worked together extensively to develop formal feedback for the Commission. On December 12th, CalCCA submitted comments on the September CPUC Ruling and white paper suggesting changes to the IRP procurement program structure. These will be followed in 2023 by further proposal workshopping leading up to a Proposed Decision.

Resource Adequacy Reform (Rulemaking.21-10-002)
Issue
Resource Adequacy (RA) is the primary vehicle by which the CPUC carries out grid reliability planning to prevent blackouts and ensure continuous electric service in California. In addition to ongoing 69 of 77
administration of the RA program, this proceeding is carrying out structural reform to make the RA program more effective at maintaining reliability of service as the grid moves away from fossil fuels to a renewables and storage-based fleet.

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

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

Status
The series of Commission slice-of-day workshops have come to an end, and on November 15th PG&E published a summary report of the ideas brought forward by various stakeholders during the workshops. CalCCA sent comments and reply comments to the Commission providing feedback on the ideas in the workshop report. CPUC staff will assess these proposals and release a Proposed Decision in Q1 2023 finalizing various details of the slice-of-day program in time to begin implementation in 2023 for 2024 year-ahead compliance. In the meantime, CCCE staff is working to incorporate slice-of-day into Resource Adequacy procurement planning for 2023 based on what details stakeholders do have at this time.

CCCE has also continued pressing the CPUC to clarify how the CPE process interacts with LSEs’ System Resource Adequacy obligations. As of writing the CPUC has not responded to CCCE’s Motion for Clarification from September. The CPUC did deny CalCCA’s Petition for Modification, and CCCE submitted comments with PCE on the Proposed Decision urging the Commission again to respond to the Motion. CCCE staff also met with the office of the President of the CPUC on December 19th to further discuss the CPE situation and opportunities for improving it in the coming year. There is an opportunity for stakeholders to submit RA program improvement proposals in January 2023, and CCCE staff will continue to engage with this important issue in the coming year.

California Energy Commission’s Updated Load Management Standards (LMS) Issue
The California Energy Commission (CEC) is the other state regulatory agency apart from the CPUC that is involved in energy policy and planning. On October 12, 2022, the CEC adopted the final updated Load Management Standard Regulations. They require IOUs, POUs, and CCAs (with load greater than 700 GWh/year) to consider and present to their governing bodies, for approval by the CEC, hourly marginal cost-based rates by 2025. The goal is to facilitate an opportunity for demand response and load flexibility across all customer classes. These rates would be optional for customers to adopt, but development of this option for each customer class would be mandatory. 70 of 77
The adopted LMS updates also pose a substantive threat to CCAs’ right to set their own rates. The revised regulations require each utility to develop a rate that complies with its requirements and present the rate to the ratemaking authority (e.g., CCA governing boards). The utilities must provide copies of their proposed rate for “informational purposes” to the CEC. Despite the seeming deference to the local ratemaking authority, failure to comply with the regulations can result in the Executive Director of the CEC filing a Complaint at the CEC or seeking injunctive relief.

Status
The CEC has created a working group to achieve the implementation of the LMS. The CEC Working Group focuses on the systems and processes needed for participating LSEs to complete the first requirement of the LMS: uploading their time dependent rate information into the CEC’s public Market Informed Demand Automation Server (MIDAS). The goal is to have a single platform where all LSE time dependent rate data can be stored queried by the public for transparency.

Energy Resource Recovery Account (ERRA)
Issue
Energy Resource Recovery Account (ERRA) Forecast Applications are filed annually by IOUs to forecast energy procurement-related revenue requirements, which includes forecast allocation of costs across PCIA vintages. The proceedings conclude in December with the setting of IOU generation rates and PCIA rates for the subsequent calendar year.

Impacts
CCCE actively participates in the ERRA proceedings to gain visibility into future PCIA and IOU rates and ensure that these are set accurately and without creating cost shifts onto CCA customers. This is accomplished through ensuring that qualifying facilities and IOU contracts are prudently administered and managed; that entries in balancing and memorandum accounts are recorded appropriately, correctly, and in compliance with Commission decisions; and that costs requested for recovery are reasonable.

Status
On December 1st, the CPUC approved the final decision for SCE’s 2023 ERRA case. SCE had negative PCIAs for select ratepayer vintages but did not contest that the PCIA should be negative. On December 15th, the CPUC gave PG&E’s 2023 ERRA proceeding approval as well. The CPUC’s Decision on PG&E’s case dismisses an argument by PG&E that the PCIA should never be allowed to go negative (meaning customers are credited directly on bills). PG&E had argued the PCIA should have a floor at zero with any negative balance held in a balancing account and applied against future positive PCIAs. The CPUC rejected PG&E’s argument and sided with the CCAs finding that the PCIA should be allowed to go negative and CCA customers credited directly on their bills through the PCIA line item. Pending release of final rates, some CCCE customers will see a negative PCIA, i.e. a bill credit, on their 2023 bills.

Bioenergy Market Adjustment Tariff (BioMAT) (Rulemaking.20-10-010) Issue
BioMAT is a procurement program for small bioenergy projects that uses a standard contract and market-based mechanism to arrive at a contract price and allows load-serving entities contracting with these projects to recover the costs from all ratepayers through the Public Purpose Programs charge. When BioMAT was created by SB 1122 in 2014 CCAs were not eligible to participate. CCCE and other CCAs lobbied successfully lobbied legislators to reverse this exclusion with the passage of AB 843 in 2021. This month the CPUC officially began implementation of AB 843 with the opening of a new proceeding to work through CCA induction into the program.

Impacts
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Impacts
CCAs have not previously had access to the cost recovery mechanism used in BioMAT, so AB 843 set a valuable policy precedent in addition to making small bioenergy projects a more viable option for CCAs. This proceeding will determine the approval process for CCA BioMAT standard contract terms, the BioMAT cost recovery process, and management of the BioMAT contract queue to track procurement progress.

Status
CalCCA, who is representing all CCAs, filed reply comments to the BioMAT Order Instituting Rulemaking on December 13th. In the comments the joint CCAs recommended that the CPUC consider extending the BioMAT program to 2030 to give CCAs time to fully implement the BioMAT tariff given our recent addition to the program by AB 843. The comment also suggested that a workshop be included in the scope to attain mutual understanding of how the BioMAT program functions to and to inform CCAs on current administrative practices and the program specific BioMAT procurement contract requirements. A proposed Scoping Ruling will be provided by the Commission outlining the proceeding phases and schedule after replies to the opening comments are made.

Legislative
In 2023, CCCE’s service area will be represented by four Assemblymembers and two Senators. Due to re-districting, CCCE now has one less Senate seat representing our service area. Re-elected and returning this session include Senator John Laird, Senator Monique Limon, and Assemblymember Robert Rivas.

The newly elected state officials in CCCE’s service area are: Assemblymember Gail Pellerin, Assemblymember Dawn Addis, and Assemblymember Gregg Hart. At the start of the new year, CCCE will be reaching out to meet and educate the newly elected legislators. CCCE will also meet with re-elected officials and, in all meetings, will learn about their legislative priorities for the year and share information about CCCE’s services and programs available to their constituents. 72 of 77
CCCE Contracts < $100k
Vendor Total Engagement Amount From To Service Scope Remarks 1 SoftResources, LLC $81,000 11/3/2022 5/15/2023 ERP consulting service to assist in managing core business processes and optimize performance 2 Heather Vowell $75,600 12/24/2022 3/31/2023 Amendment to Board Clerk Services contract to additional $25,200 and extend the terms for 3-months 3 Monterey Language Services, LLC $73,000 10/1/2022 9/30/2023 Amendment No. 2 to executed Amendment No. 1 dated 9/28/21 extending service with no NTE changes 4 Waltz Creative, LLC $90,000 10/1/2022 3/31/2023 Amendment No. 1 to executed agreement dated 12/9/2021 extending service with no NTE changes 73 of 77
Staff Report Item 8
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Discuss the Return to Pre-Pandemic Brown Act Remote Meeting Policies as the Governor's Declaration of Emergency Ends on February 28, 2023 (Discussion Item)
DATE: January 11, 2023
RECOMMENDATION:

Staff recommends that the Boards limit remote locations to reduce operational constraints of multiple meeting locations. Staff also recommends maintaining consistent, standard remote locations to avoid coordination and technical issues as well as potential confusion from members of the public. Finally, for any remote locations that the Board chooses to use, staff asks that the Standard Procedures and Site Requirements described above be put in place by the member agency.

BACKGROUND:

On October 2022, the Operations Board received a report regarding the impending suspension of the Governor’s Declaration of Emergency related to COVID-19 and the impact on Brown Act-compliant remote meeting policies. The Declaration remains scheduled to conclude at the end of February, which will require CCCE to revert to pre-pandemic teleconferencing procedures, including:

1. Agendas posted at all teleconference locations

2. Each teleconference location identified in the meeting notices and agendas

3. Each teleconference location accessible to the public

4. Each teleconference location equipped to allow the public to address the legislative body

5. A quorum of the legislative body participating from locations within the boundaries of the agency’s jurisdiction
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At the October meeting, the Operations Board discussed a variety of options for conducting meetings following the suspension of the Governor’s Declaration of Emergency including designating a limited number of remote teleconference locations or permitting an unlimited number of remote locations.

This matter returns to the Board for further discussion and direction.

DISCUSSION/ANALYSIS:

Staff has previously recommended that the Boards limit remote locations to reduce operational constraints of multiple meeting locations. Staff further recommended maintaining standard remote locations to avoid coordination and technical issues as well as potential confusion from members of the public.

To accommodate remote locations, staff proposes standard procedures and site requirements intended to ensure technical success and staff efficiency. Member agencies who wish to host remote attendance should be prepared to provide the following:

Standard Procedures and Site Requirements

1. Sites:
a. Site designation a minimum of thirty (30) days before meeting agenda noticing date (CCCE strives to publish one week prior to regular meetings). Sites must be ADA-compliant and publicly accessible for viewing and public comment. i. Typically, this is a TV, connecting device, camera, and microphone setup.

Environments that are not permissible would include headsets for audio or users connecting from a desk or single-user workstation where public attendees wouldn’t be able to see the meeting on display.

2. Staff Support
a. Designation of a clerk or other single point of contact for CCCE’s Clerk of the Board available for coordination prior to agenda posting that will be responsible for posting the agenda at the remote location no later than 72 hours before the beginning of the public meeting.
b. Designation of an IT staff member or other single point of contact for CCCE’s IT staff to coordinate, set up, test, and troubleshoot prior to and during the remote meeting from the remote meeting location.

3. Remote Site Setup and Process (15 Minutes Prior to Meeting Start) a. Designated remote IT staff powers on and tests all equipment. b. Designated remote IT staff joins the remote meeting and performs camera and audio tests with CCCE IT and Board Clerk.
c. Troubleshooting communication issues.
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FISCAL IMPACT:

There is no fiscal impact associated with this staff report. Fiscal impacts anticipated with remote meetings of the Operations or Policy Boards should be expected by member agencies in the form of site usage, facilities, clerk, and IT staff time needed to prepare and support the remote meeting locations.

CONCLUSION:

The return to pre-pandemic Brown Act teleconferencing procedures will require additional coordination among CCCE staff and remote meeting hosts’ staff to support the meeting. 76 of 77
Staff Report Item 9
TO: CCCE Operations Board of Directors
FROM: Tom Habashi, Chief Executive Officer
SUBJECT: Appointment of 2023 Operations Board of Directors Chair and Vice Chair (Action Item) DATE: January 11, 2023
RECOMMENDATION:

This recommends the Operations Board receive and consider nominations for, and approve the appointment of, the 2023 CCCE Operations Board of Directors Chair and Vice Chair.

BACKGROUND:

Pursuant to section 3.9.2 of the CCCE Joint Exercise of Powers Agreement:

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.

At the Operations Board’s October 12, 2022, meeting, Resolution No. OB-2022-04 was passed, stating that:

The Operations Board shall adopt as its policy that the Board Chair and Vice-Chair officers shall be selected such that one Officer be selected from Directors representing member agencies from the northern (Monterey, San Benito, Santa Cruz) county area and the other Officer shall be selected from Directors representing member agencies from the southern (San Luis Obispo, Santa Barbara) county areas, with the northern and southern representation of the Chair and Vice-Chair positions rotate on a two-year basis.

FISCAL IMPACT:

None
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Central Coast Community Energy (3CE) Operations BoardJanuary 11, 2023

Central Coast Community Energy (3CE) Operations Board
January 11, 2023