Central Coast Community Energy (3CE) Operations Board
March 8, 2023

Operations Board of Directors
Wednesday, March 8, 2022
10:30 AM
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940

REMOTE LOCATION VIA TELECONFERENCE
Any interested parties or community members may attend, and participate in, the meeting at the following addresses where Board members may also join the meeting from:

County of Santa Cruz
701 Ocean Street, Third Floor Training Room
Santa Cruz, CA 95060
City of Watsonville
Watsonville Public Library
275 Main Street, Suite 100, Meeting Room,
Watsonville, CA 95076
City of San Luis Obispo
City Hall
990 Palm Street, Council Chambers
San Luis Obispo, CA 93401
City of Santa Maria
City Hall
110 East Cook Street, Council Chambers
Santa Maria, CA 93454
County of Santa Barbara
County Administration Building
105 East Anapamu Street,
Board of Supervisors Conference Room
Santa Barbra, CA 93101
Public may participate through ZOOM. For ZOOM participation please join by computer audio at:
https://us02web.zoom.us/s/82380649701
Or join by phone:
+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 press # again after the recording prompts you.

You will be placed in the meeting as an attendee.   To make a public comment:
 If joined by computer, please press the button to raise your hand  If joined 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 to a member of 3CE staff or the Board Clerk, who will distribute the information to the Board members and staff.

The public may comment on the consent agenda and matters not listed on the agenda but within the Board's jurisdiction at the opening of the meeting. 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.  The public may comment on a specific item listed on this agenda when the Board considers that item.

Speakers are limited to 3 minutes each.

In addition, 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 3CE’s offices located at 70 Garden Court, Suite 300, Monterey, CA 93940 during normal business hours and are also available on the 3CE website located at:
https://3cenergy.hylandcloud.com/203agendaonline
AGENDA- Amended 3/7/2023
. 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 January 11, 2023 Meeting of the Operations Board of Directors (Action Item)

2. Approve and Authorize the CEO to Execute the Edison Electric Institute Master Power Purchase and Sale Agreement with Citadel Energy Marketing LLC (Action Item) a) Citadel EEI Collateral Annex
b) Citadel EEI Master Agreement

3. Treasurer's Report (Information Only)

REGULAR AGENDA

4. Community Advisory Report (Discussion Item)

5. CEO Report (Discussion Item)

6. 2021-2022 Annual Report Presentation (Information only)

CLOSED SESSION

7. Closed session under Government Code § 54956.9(1)(d) relating to one item of existing litigation:
a) CCCE v. Big Beau Solar, LLC (Santa Clara County Superior Court case no. 22CV398156) Adjournment
Regular Meeting of the Operations Board of
Directors
Wednesday, January 11, 2023
1:00 PM
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940

MINUTES
The meeting was called to order at 10:31 AM with 10 members attending via teleconference in compliance with AB361 and a quorum established.

Directors Present: Espinosa, Harvey, Huffaker, Imhof, Johnson, Jim Lewis, Mendez, Miyasato, Pia, Stillwell, Vidro, Vice Chair Goldstein, Chair Palacios
Directors Absent: De La Rosa, Miller, Norgaard, Ty Lewis, Wood (arrived 10:35) 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 on listed on the agenda.

No Public Comments Received.

The Chair closed public comment period.

CONSENT AGENDA
MOTION: Moved by Director Huffaker seconded by Director Miyasato to approve the Consent Agenda.

ACTION: The Motion Carried with a roll call vote: 12/0/6 AYES: Espinosa, Harvey, Huffaker, Imhof, Johnson, Jim Lewis, Mendez, Miyasato, Pia, Stillwell, Vice Chair Goldstein, Chair Palacios
NOES: None
ABSENT: De La Rosa, Miller, Norgaard, Ty Lewis, Vidro, Wood

1. Approved Minutes from the December 14, 2022 Meeting of the Operations Board 1 of 92

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

3. Authorized the CEO to Execute Amendment No. 1 to Agreement with 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. Authorized 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
The Chair opened the public comment period.

No Public Comments Received.

The Chair closed the public comment period.

ACTION: Discussion Item; no action required

7. CEO Report
Customer Enrollment and Engagement Report
Update On FY 22-23 Community Energy Programs
Update On FY 22-23 Member Agency Services
Regulatory & Legislative Impact Update
CCCE Contracts < $100k
The Chair opened the public comment
period.

No Public Comments Received.

The Chair closed public comment period.

ACTION: Discussion Item; no action required

8. Discussed the Return to Pre-Pandemic Brown Act Remote Meeting Policies as the 2 of 92
Governor's Declaration of Emergency Ends on February 28, 2023 (Discussion item) The Chair opened the public comment
period.

No Public Comments Received.

The Chair closed public comment period.

ACTION: Discussion Item; no action required

9. Appointed Derek Johnson as Chair and reappointed Jamie Goldstein as Vice Chair of the Operations Board for 2023
The Chair opened the public comment period.

No Public Comments Received.

The Chair closed public comment period.

MOTION: Moved by Director Imhof seconded by Director Stillwell to approve Derek Johnson as Chair and Jamie Goldstein as Vice Chair
ACTION: The Motion Carried with a voice vote:

AYES: Espinosa, Harvey, Huffaker, Imhof, Johnson, Jim Lewis, Miyasato, Pia, Stillwell, Wood, Vice Chair Goldstein, Chair Palacios
NOES: None
ABSENT: De La Rosa, Mendez, Miller, Norgaard, Ty Lewis, Vidro, Wood The Chair opened the public comment period.

No Public Comments Received.

The Chair closed the public comment period.

Adjourned at 10:55 AM
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Staff Report Item 2
TO: CCCE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: Approve and Authorize the CEO to Execute the Edison Electric Institute Master Power Purchase and Sale Agreement with Citadel Energy Marketing LLC (Action Item) DATE: March 8, 2023
RECOMMENDATION:

This recommends the Board approve and authorize the CEO to execute the Edison Electric Institute Master Power Purchase and Sale Agreement, and all associated documents, with Citadel Energy Marketing LLC (“CEM”).

BACKGROUND:

An Edison Electric Institute Master Power Purchase and Sale Agreement (“EEI Master Agreement”) provides a general framework for the efficient transacting of energy and resource adequacy (RA) products. The CEM EEI Master Agreement has no specific transaction associated with it at this time.

Individual confirmation agreements (“confirms”) are entered into which specify the product, quantity, and price of any future transactions. The individual confirms are governed by the EEI Master Agreement.

DISCUSSION/ANALYSIS:

Maintaining a set of active counterparties is essential to achieving competitive pricing. Previously, CCCE has executed sixteen (16) EEI Master Agreements, with certain negotiated modifications. In order to increase market liquidity and decrease counterparty credit risk it is important to add active counterparties to CCCE’s approved supplier list. CEM is an active market participant that can provide energy and capacity products.

FISCAL IMPACT:

There is no direct fiscal impact related to the approval of the EEI with Citadel. Individual confirmations would be subject to negotiation and execution pursuant to the terms of the approved Energy Risk Management Policy.
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CONCLUSION:

The Operations Board approval and authorization to execute the EEI Master Agreements and all associated documents, with CEM will improve CCCE’s pool of active trading partners and increase competition to the benefit of 3CE customers. There are no specific transactions associated with this authorization request.

ATTACHMENTS:

1. Citadel EEI Collateral Annex

2. Citadel EEI Master Agreement
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©COPYRIGHT 2000 by the Edison Electric Institute and National Energy Marketers Association

MASTER POWER PURCHASE AND SALE AGREEMENT

COVER SHEET
This Master Power Purchase and Sale Agreement Master Agreement February 13, 2023 Effective Date schedules and any
written supplements hereto, the Party A Tariff, if any, the Party B Tariff, if any, any designated collateral, credit support or margin agreement or similar arrangement between the Parties and all Transactions shall be referred to as the Agreement
Name: Citadel Energy Marketing LLC Name: Central Coast Community Energy Authority, a California joint powers authority 3CE or Party B
All Notices: All Notices:

Address: c/o Citadel Americas LLC
Southeast Financial Center
200 S. Biscayne Blvd., Suite 3300
Miami, FL 33131
Address: 70 Garden Court, Suite 300
Monterey, CA 93940
Attn: Legal Department
Phone: 305-929-6851
Email: [email protected]
Duns: 079663087
Federal Tax ID Number: 47-2100213
Attn: Dennis Dyc-Resources
Phone: (831) 641-7240
Email: [email protected]
Duns: 080977851
Federal Tax ID Number: 82-2386705
Invoices:

Attn: Energy Invoices
Phone: 312-395-3805
Email: [email protected]
Invoices:

Attn: Accounts Payable-Power Services
Phone: (831) 641-7218
Email: [email protected]
Scheduling (for CAISO):

Attn: Scheduling Desk
Phone: 520-856-5407
Email: [email protected]
Scheduling:

Attn: The Energy Authority
Phone: (425) 460-1110
Email: [email protected]
Confirmations:

Attn: Energy Transaction Confirmations
Phone: 312-395-3805
Email: [email protected]
Confirmations:

Attn: Jeremy Clark, Manager of Energy Trading
Phone: (831) 641-7214
Email: [email protected]
Payments:

Attn: Energy Invoices
Phone: 312-395-3805
Email: [email protected]
Payments:

Attn: ___________
Phone: ___________
Email: [email protected]
Wire Transfer:

Bank: The Bank of New York Mellon
ABA:

ACCT:

Wire Transfer:

Bank: River City Bank
ABA:

Account:
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©COPYRIGHT 2000 by the Edison Electric Institute and National Energy Marketers Association Credit and Collections:

Attn: Energy Credit
Phone: 312-395-3805
Email: [email protected]
Credit and Collections:

Attn: ___________
Phone: ___________
Email: [email protected]
With additional Notices of an Event of Default
or Potential Event of Default to:

Attn: Legal Department
Phone: 305-929-6851
Email: [email protected]
With a copy to:

Attn:

Phone:

Email:

With additional Notices of an Event of Default or
Potential Event of Default to:

Central Coast Community Energy
Attn: Brian Kimball, General Counsel
Phone: (831) 257-4000
Email: [email protected]
With a copy to:

Hall Energy Law PC
Attn: Stephen Hall
Phone: (503) 313-0755
Email: [email protected]
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©COPYRIGHT 2000 by the Edison Electric Institute and National Energy Marketers Association The Parties hereby agree that the General Terms and Conditions are incorporated herein, and to the following provisions as provided for in the General Terms and Conditions:

Party A Tariff: FERC Electric Tariff No.1 Dated: July 29, 2021 Docket Number: ER21-1921-000 Party B Tariff: N/A
Article Two
Transaction Terms and Conditions Optional provision in Section 2.4. If not checked, inapplicable.

Article Four
Remedies for Failure
to Deliver or Receive
Accelerated Payment of Damages. If not checked, inapplicable.

Article Five
Events of Default; Remedies Cross Default for Party A:

Party A: Cross Default Amount: $30,000,000
Other Entity: Cross Default Amount $______
Cross Default for Party B:

Party B: Cross Default Amount: $30,000,000
Other Entity: Cross Default Amount $

5.6 Closeout Setoff:

Option A (Applicable if no other selection is made.)
Option B - Affiliates shall have the meaning set forth in the Agreement unless otherwise specified as follows:

Option C (No Setoff)
Article Eight 8.1 Party A Credit Protection:

Credit and Collateral Requirements (a) Financial Information:

Option A
Option B Specify:

Option C Specify:
(1) The annual report containing audited consolidated
financial statements for such fiscal year of Party B as soon as practicable after demand, but in no event later than 180 days after the end of each annual period and such request will be deemed to have been filled if such financial
statements are available at: https://3cenergy.org, and
(2) quarterly unaudited financial statements for Party B as soon as practicable upon demand, but in no event later than 90 days after the applicable quarter. In all cases the
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©COPYRIGHT 2000 by the Edison Electric Institute and National Energy Marketers Association statements shall be for the most recent accounting period and shall be prepared in accordance with generally accepted accounting principles; provided, however, that should any such statements not be available on a timely basis due to a delay in preparation or certification, such delay shall not be an Event of Default so long as the relevant entity diligently pursues the preparation, certification, and delivery of the statements. The first quarterly unaudited statement will be provided within 90 days after the fiscal quarter during which Party A begins deliveries under a Transaction.
fiscal year ends June 30.
(b) Credit Assurances:

Not Applicable
Applicable
(c) Collateral Threshold:

Not Applicable
Applicable
If applicable, the provisions of Section 8.1(c) of the
Agreement shall be replaced by the provisions of the
Collateral Annex attached hereto.
(d) Downgrade Event:

Not Applicable
Applicable
If applicable, complete the following:

Credit Rating falls below BBB- from S&P or Baa3 from
or if Party B is not rated by either S&P or
Other - Specify:
(e) Guarantor for Party B: N/A
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8.2 Party B Credit Protection:
(a) Financial Information:

Option A
Option B Specify:

Option C Specify:

The annual report containing audited consolidated financial statements for such fiscal year of Party A as soon as
practicable after demand, but in no event later than 180 days after the end of each annual period of Party A and unaudited monthly financials within 45 days after the end of each month of Party A, and, in each case, such request will be deemed to have been filled if such financial statements are available at an internet or intranet website available to Party B from which such financial statements can be viewed. In all cases the statements shall be for the most recent
accounting period and shall be prepared in accordance with generally accepted accounting principles or international financial reporting standards; provided, however, that
should any such statements not be available on a timely basis due to a delay in preparation or certification, such delay shall not be an Event of Default so long as the relevant entity diligently pursues the preparation, certification and delivery of the statements.
(b) Credit Assurances:

Not Applicable
Applicable
(c) Collateral Threshold:

Not Applicable
Applicable
If applicable, the provisions of Section 8.2(c) of the
Agreement shall be replaced by the provisions of the
Collateral Annex attached hereto.
(d) Downgrade Event:

Not Applicable
Applicable
If applicable, complete the following:

Credit Rating falls below BBB- from S&P or Baa3 from
Other - Specify: It shall be a Downgrade Event for Party 10 of 92
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©COPYRIGHT 2000 by the Edison Electric Institute and National Energy Marketers Association BBB-
(e) Guarantor for Party A: (1) One or more of the following entities: Citadel Wellington LLC, Citadel Kensington
Global Strategies Fund Ltd., and Citadel Kensington
Global Strategies Fund II Ltd, and (2) any entity that, as of the date of determination, becomes a guarantor pursuant to and in accordance with an existing guaranty of Party
obligations under this Agreement that is in full force and effect as of such determination date. Guarantee Amount:

Article Ten
Confidentiality Confidentiality Applicable If not checked, inapplicable.

Schedule M
Party A is a Governmental Entity or Public Power System Party B is a Governmental Entity or Public Power System Add Section 3.6. If not checked, inapplicable
Add Section 8.4. If not checked, inapplicable
Other Changes
This Master Power Purchase and Sale Agreement and the associated Collateral Annex incorporate, by reference, the changes published in the EEI Errata, Version 1.1, dated July 18, 2007.

ARTICLE ONE: GENERAL DEFINITIONS. 1. Affiliate Section 1.1 is amended by adding the following sentence at the end of the definition:

Notwithstanding the foregoing, the Parties hereby agree and acknowledge that with respect to Party B, the public entities designated as members or participants under the Joint Powers Agreement creating Party
Agreement or any Confirmation executed in connection therewith, and that, with respect to Party A, 2. Business Day Section 1.4 is amended by deleting the first sentence and replacing it to read as follows:

Thanksgiving holiday or a Federal Reserve Holiday.

3. Credit Rating Section 1.12 is superseded. See Paragraph 10 to the Collateral Annex.

4. Force Majeure Section 1.23 is amended by (i) adding the following phrase after the word for
the applicable Product) inserting in the thirteenth line of this Subsection before the phrase 11 of 92
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5. Gains Section 1.24
accordance wi

6. A new Section 1.26A is added as follows:

1.26A Joint Powers Agreement February 21,
2017, as amended, providing for the formation of Party B, as such agreement may be further amended or a

7. Letters of Credit Section 1.27 is superseded. See Paragraph 10 to the Collateral Annex. 8. Losses Section 1.28 . 9. Replacement Price Section 1.51
(Buyer shall
have no obligation to enter into actual replacement t

10. S&P Section 1.52
McGraw-11. Sales Price Section 1.53 is amended by:
(i) and
(ii) . 12. Settlement Amount Section 1.56

13. Transaction Section 1.60 diately following the

14. The following is added as a new Section 1.62:

Unpaid Amounts
that have not been paid as of the Early Termination Date whether or not such amounts are then due, including, without duplication, (i) invoiced amounts, (ii) uninvoiced amounts, including without limitation amounts payable in respect of physical deliveries or settlements that occurred prior to the Early Termination Date, (iii) damages payable under Article 4 of this Agreement, and (iv) taxes or other costs or expenses to the extent an obligation to pay shall have accrued under this Agreement or the Confirmation relating to a Transaction on or prior to the Early Termination Date; provided, that Unpaid Amounts shall not include
ARTICLE TWO: TRANSACTION TERMS AND CONDITIONS. 1. Section 2.1 is deleted in its entirety and replaced with the following:

A Transaction, or an amendment, modification or supplement thereto, shall be entered into only upon a writing signed by both Parties. Each Party agrees not to contest, or assert any defense to, the validity or enforceability of the Transaction entered into in accordance with this Master Agreement based on any lack of authority of the Party or any lack of authority of any employee of the Party to enter into a Transaction; provided, however, Party A acknowledges that no employee of Party B may amend or 12 of 92
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©COPYRIGHT 2000 by the Edison Electric Institute and National Energy Marketers Association otherwise materially modify this Master Agreement or a Transaction, or enter into a new Transaction, without the approval of the board of Party B, which may be granted on a prospective basis, and that evidence of such approval, including a certified incumbency certificate setting forth the name and signatures of employees of Party B with authority to act on behalf of Party B, will be provided upon request

2. Section 2.3 is deleted in its entirety and replaced with the following:

Confirmation. A Transaction shall be entered into only by a written confirmation in a form mutually contrary in this Master Agreement, the Master Agreement and any and all Confirmations may not be

3. Section 2.4 seventh line and
. 4. Section 2.5 is amended by deleting the last two sentences thereof in their entirety.

ARTICLE THREE: OBLIGATIONS AND DELIVERIES. 1. Section 3.2 be scheduled in accordance with the then-current applicable tariffs, protocols, operating procedures and sc

2. Section 3.3 is amended by deleting the second to last sentence of Section 3.3 in lines 7 and 8, which reads of Force Majeure and to resolve the event or occurrence once it has occurred in order to resume ARTICLE FOUR: REMEDIES FOR FAILURE TO DELIVER/RECEIVE.

1. Section 4.1
line.

2. Section 4.2
line.

ARTICLE FIVE: EVENTS OF DEFAULT; REMEDIES. 1. Section 5.1(a) is amended to

2. Section 5.1(b)
by such Party herein is false or misleading in any material respect when made or when deemed made or repeated; provided, however, that it shall only be an Event of Default under this Section 5.1(b) if the adverse effect of such misrepresentation, if susceptible of cure, is not remedied within 30 days after the

3. Section 5.1(c) is amended to
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4. Section 5.1(e)
and such failure is not remedied by the close of business on the Business Day following the effectiveness

5. Section 5.1(f) is amended by adding the following immediately prior to the semicolon at the end of the Section

6. Section 5.1(g) is deleted in its entirety and replaced with the following:
ty, the occurrence and
continuation of a default, event of default or other similar condition or event in respect of such Party or any other party specified in the Cover Sheet for such Party under one or more agreements or instruments, individually or collectively, relating to indebtedness for borrowed money in an aggregate amount of not less than the applicable Cross Default Amount (as specified in the Cover Sheet), which results in such indebtedness becoming immediately due and payable; provided, however, that it shall not constitute an Event of Default under this Section 5.1(g) if (i) such event, condition or failure is a failure to pay caused by an error or omission of an administrative or operational nature, (ii) funds were available to such Party to enable it to make the relevant payment when due, and (iii) such event, condition or failure is remedied on or before the third Business Day after receipt of written notice of its occurrence;

7. Section 5.1(h)(ii) is amended to

8. Section 5.1(h)(v) is amended to a

9. Section 5.1 is further amended by replacing the period at the end of subsection (h) with a semicolon, and adding new subsections which read as follows:
of this Master Agreement contain any information or statements therein that are materially false or misleading if such false or misleading statements are not remedied within thirty (30) days after written notice;
(j) (i) -based rates in CAISO is revoked or suspended by the Federal Energy Regulatory Commission; (ii) Party A is unable to reinstate such authorization or cause such authorization to be reinstated within one hundred eighty (180) days of the effective date of such revocation or suspension; and (iii) Party A is prohibited from selling power to Party B under any outstanding Transaction hereunder pursuant to the terms of such Transaction; or (k) Party B shall cease to have authority to make payments under this Agreement or any Transaction subject to this Agreement, which shall be an Event of Default under this Section 5.1(k) solely with respect to Party B.

10. Section 5.2 is deleted in its entirety and replaced as follows: - notice is effective and no later than 20 days after such notice is effective, as an early termination date the parties, (ii) withhold any payments due to the Defaulting Party under this Agreement and (iii) suspend performance, in each case subject to the immediately following sentence. Notwithstanding the foregoing, upon the occurrence of any Event of Default with respect to Party A under Section 5.1(d) or Section 14 of 92
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5.1(h)(iii), Party B shall not have any right (x) to designate an Early Termination Date or terminate or liquidate any Transactions, or (y) withhold any payments due to Party A, or that would otherwise be due to Party A but for the suspension of performance by Party B, under this Agreement, in each case unless such Event of Default is still continuing on the date that is 45 calendar days following the date such Event of Default first occurred with respect to Party A (such 45- B agrees (A) to work together with Party A in good faith to permit Party A to novate its interests in the Transactions hereunder prior to the expiration of the Novation Period to a third party that is not affiliated with Party A, (B) to sign any novation agreement or other documentation reasonably requested by Party A during the Novation Period or required by any bankruptcy court to effectuate, or otherwise in connection with, the novation of the Transactions (it being acknowledged and agreed that a novation agreement providing for the novation of the Transactions on terms substantially similar as the terms set forth in this Agreement (with reasonable adjustments to the applicable credit support provisions of this Agreement, including the Collateral Annex) to a third party not affiliated with Party A shall be deemed to be reasonably requested by Party A) and (C) not to object to any approval sought by Party A from any bankruptcy court to novate the Transactions to a third party that is not affiliated with Party A.

Notwithstanding anything to the contrary herein, Party B shall not be required to (X) consent to a novation to a third party that does not (i) have a Credit Rating of at least BBB-or (ii) provide a guaranty reasonably acceptable to Party B from a guarantor that has a Credit Rating of at least BBB- iii) provide Performance Assurance in an amount reasonably acceptable to Party B; or (Y) provide any consent, or enter into any novation or other agreement, that materially and adversely affects any
under the Transactions (it being agreed that, if the requirements set forth in clause (X) above are satisfied, any agreement providing for the novation of the Transaction on terms substantially similar to the terms set forth in this Agreement (with conforming amendments to the applicable credit support provisions to take into account the credit support being provided) shall not be deemed to adversely affect any of Party ations under the Transactions).
the Transactions in accordance with the foregoing shall be expressly permitted under Section 10.5.

The Non-Defaulting Party shall calculate, in a commercially reasonable manner, a Settlement Amount for each such Terminated Transaction as of the Early Termination Date (or, to the extent that in the reasonable opinion of the Non-Defaulting Party certain of such Terminated Transactions are commercially impracticable to liquidate and terminate or may not be liquidated and terminated under applicable law on the Early Termination Date, then each such Transaction shall be terminated as soon thereafter as reasonably practicable, and upon termination shall be deemed to be a Terminated Transaction and the Termination Payment payable in connection with all such Transactions shall be calculated in accordance with Section 5.3 below). The Gains and Losses for each Terminated Transaction shall be determined by the Non-Defaulting Party in a commercially reasonable manner by calculating the amount that would be incurred or realized to replace or to provide the economic equivalent of the remaining payments or deliveries in respect of that Terminated Transaction. In making such calculation, the Non-Defaulting Party shall reference information supplied by one or more third parties including, without limitation, quotations (either firm or indicative) of relevant rates, prices, yields, yield curves, volatilities, spreads or other relevant market data in the relevant markets, and information obtained through a recognized exchange, clearinghouse, or reference entity, with such adjustments that the Non-Defaulting Party determines, acting in good faith and in a commercially reasonable manner, are applicable based on the specific terms of such Transaction or Transactions. Third parties supplying such information may include dealers, brokers and information vendors, including, without limitation, Intercontinental Exchange, Inc.

If quotations or relevant market data from third party sources are not readily available, the Non-Defaulting Party may reference to information of the types described above as are available from internal sources (including any of the Non- of the same type used by the Non-Defaulting Party in the regular course of its business for the valuation of similar transactions. If the Non- a Settlement Amount for a Terminated Transaction results in an 15 of 92
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11. Section 5.3
-
-Defaulting Party

12. Section 5.6
extent the Transactions are not yet liquidated in accordance with Section 5.2, withhold payment of the

13. Section 5.7 is amended as follows:
(i) In line 4, dele
; and
(ii) add the following at the end of Section 5.7:
-Defaulting Party be
subject to the condition precedent that no Potential Event of Default shall have occurred or be continuing relating to Section 5.1(c) with respect to the Defaulting Party. In addition, if an Early Termination Date is declared pursuant to Section 5.2 following suspension of performance, the Settlement Amount for the suspended Transactions shall include the Gain or Loss resulting from the suspension of performance prior to the Early Termination Date. The Gain or Loss resulting from suspension of performance will be determined in a commercially reasonable manner by the Non-Defaulting Party as of the originally scheduled date for delivery had such su ARTICLE SEVEN: LIMITATIONS. 1. Section 7.1 is amended by:
(ii) adding in the nineteenth

SHALL AFFECT THE ENFORCEABILITY OF THE PROVISIONS OF THIS AGREEMENT

EXPRESSLY ALLOWING FOR SPECIAL DAMAGES, INCLUDING BUT NOT LIMITED TO REMEDIES FOR FAILURE TO DELIVER/RECEIVE IN SECTIONS 4.1 AND 4.2, AND CALCULATION AND PAYMENT OF THE TERMINATION PAYMENT IN SECTIONS 5.2 AND ARTICLE EIGHT: CREDIT AND COLLATERAL REQUIREMENTS.

1. A new Section 8.4 is added as follows:

UCC Waivers. Section 8, to the extent applicable, and the Collateral Annex, set forth the entirety of the agreement of the Parties regarding credit, collateral and adequate assurances. Except as expressly set forth 16 of 92
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(a) has or will have any obligations to post margin, provide letters of credit, pay deposits, make any other prepayments or provide any other financial assurances, in any form whatsoever, or (b) will have reasonable grounds for insecurity with respect to the creditworthiness of a Party that is complying with the relevant provisions of Section 8, or the Collateral Annex, if applicable; and all implied rights relating to financial assurances arising from Section 2-609 of the Uniform ARTICLE TEN: MISCELLANEOUS. 1. In Section 10.2, delete
from Sections 10.2(ii), (iii), (iv), (vi), (vii), (viii), (x) and (xi).

2. Section 10.2(x) is deleted in its entirety and replaced with the following:
amended, 7 U.S.C. §

3. Section 10.2(xi)

4. Section 10.4 is amended by adding the following to the end of the first sentence:

5. Section 10.5 is deleted in its entirety and replaced as follows:
sign this Agreement or its rights hereunder without the prior written consent of the other Party, which consent shall not be unreasonably withheld; provided, however, either Party may, without the consent of the other Party (i) collaterally assign this Agreement or the accounts, revenues or proceeds hereof in connection with any financing or other financial arrangements (and without relieving itself from liability hereunder), (ii) transfer or assign this Agreement to an Affiliate of such Party so long as (x)
any, for such Party, or (y) the obligations of such Affiliate are guaranteed or otherwise supported by such Party or its Guarantor, if any, in accordance with a guaranty agreement or other credit support, in form, substance and amount and from a Guarantor or other credit support provider, in each case that is satisfactory to the other Party in its sole discretion, and (iii) transfer or assign this Agreement to any person or entity succeeding to all or substantially all of the assets of such Party whose creditworthiness is equal to or higher than that of such Party or its Guarantor, if any; provided, however, that in the case of any assignment pursuant to subsections (ii) or (iii) above, regardless of whether the assigning party is Party A or Party B, any such assignee (1) can make all of the representations and warranties of the assignor set forth herein after giving effect to such transfer, (2) complies with the non- -your-customer and anti-money laundering internal rules, policies and procedures as reasonably and consistently applied, (3) has satisfied all of the credit support requirements of such Party under this Agreement, and (4) as

6. Section 10.6 is

TO ANY JURY TRIAL WITH RESPECT TO ANY LITIGATION ARISING UNDER OR IN 17 of 92
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©COPYRIGHT 2000 by the Edison Electric Institute and National Energy Marketers Association an EACH PARTY HEREBY IRREVOCABLY WAIVES,

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE

TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING

OUT OF OR RELATING TO THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HEREBY (i) CERTIFIES THAT NO REPRESENTATIVE,

AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR

OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (ii) ACKNOWLEDGES THAT IT AND

THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. (b) EACH PARTY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND

FEDERAL COURTS LOCATED IN SAN FRANCISCO, CALIFORNIA, FOR ANY ACTION OR

PROCEEDING RELATING TO THIS AGREEMENT OR ANY TRANSACTION, AND EXPRESSLY

WAIVES ANY OBJECTION IT MAY HAVE TO SUCH JURISDICTION OR THE CONVENIENCE OF SUCH FORUM.

The Parties intend for the waiver in clause (a) above to be enforced to the fullest extent permitted under applicable law as in effect from time to time. To the extent that the waiver in clause (a) above is not enforceable at the time that any action or proceeding is filed in a court of the State of California by or against any Party, then (i) the court shall, and is hereby directed to, make a general reference pursuant to California Code of Civil Procedure Section 638 to a referee (who shall be a single active or retired judge) to hear and determine all of the issues in such action or proceeding (whether of fact or of law) and to report a statement of decision, provided that at the option of any Party, any such issues pertaining to a 1281.8 shall be heard and
determined by the court, and (ii) the Parties shall share equally all fees and expenses of any referee

7. Section 10.6 is amended by changing . 8. Section 10.7 e; (3)
the following language to the end:
and delivered to Party A via email to the applicable address listed below:

9. Section 10.8 is amended by:
(ii
5, (ii) Section 7.1, (iii) Section 10.11, (iv) Waiver of Jury Trial and general reference provisions, if applicable, (v) the obligation of either Party to make payments hereunder, (vi) Section 10.4, (vii) Section 10.6 and (viii) Section 10.16 shall also survive the termination of the Agreement or any (iii)
may be signed in any number of counterparts with the same effect as if the signatures to the counterparts were upon a single instrument. Delivery of an executed signature page of this Master Agreement and any Confirmation by electronic mail transmission (including PDF) shall be the same as delivery of a manually 18 of 92
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©COPYRIGHT 2000 by the Edison Electric Institute and National Energy Marketers Association executed signature page. The Parties may rely on electronic or scanned signatures as originals under this Master Agreement and any Confirmation

10. Section 10.9 is amended as follows:
(i) The first sentence of Section 10.9 is replaced with the following:
extent reasonably necessary to verify the
accuracy of any statement, charge or computation made pursuant to this Master Agreement if ;
(ii) In t ;
(iii) In t
; and
(iv) Add the following t
the examination and audit of copies of the relevant books, records and telephone recordings provided by a Party and do not grant either Party the right to an on-premises exam

11. Section 10.10 is amended by adding the following after the last sentence of Section 10.10:
term is used in 11 U.S.C. Section 366, and each Party waives and agrees not to assert the applicability of

12. Section 10.11 is deleted in its entirety and replaced with the following:

Confidentiality. If the Parties have elected on the Cover Sheet to make this Section 10.11 applicable to this Master Agreement, neither Party shall disclose the terms or conditions of a Transaction under this Master Agreement or the completed Cover Sheet to this Master Agreement to a third party (other than the Affiliates, who have a need to know such information and have agreed to keep such terms confidential) except in order to comply with any applicable law, regulation, or any exchange, control area or independent system operator rule or in connection with any court or regulatory proceeding applicable to such Party or any of its Affiliates; provided, however, each Party shall, to the extent practicable, use reasonable efforts to prevent or limit the disclosure. The Parties shall be entitled to all remedies available at law or in equity to enforce, or seek relief in connection with, this confidentiality obligation. The Parties agree and acknowledge that nothing in this Section 10.11 prohibits a Party from disclosing any one or more of the commercial terms of a Transaction (other than the name of the other Party unless otherwise agreed to in writing by the Parties) to any industry price source for the purpose of aggregating and reporting such information in the form of a published energy price index.

Party A and Party B acknowledge and agree that the Master Agreement and any Transactions entered into in connection therewith are subject to the requirements of the California Public Records Act (Government Code Section 6250 et seq.). In order to designate information as confidential, the disclosing party must However, the Parties failure to designate information as confidential does not waive or limit t rights to object to the production of material or assert exemptions to the requested documents. The Parties agree not to over-designate material as confidential. Over-designation would include stamping whole agreements, entire pages or series of pages as Confidential that clearly contain information that is not confidential.
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©COPYRIGHT 2000 by the Edison Electric Institute and National Energy Marketers Association Upon request or demand of any third person or entity not a Party hereto to Party B pursuant to the California Public Records Act for production, inspection and/or copying of Confidential Information email that such request has been made.
before it produces Confidential Information to any third person or entity. Party A will be solely responsible for taking at its sole expense whatever legal steps are necessary to prevent release of the Requested Confidential Information to the third party by Party B. If Party A takes no such action after receiving the request or demand and is not required to defend against it. If Party A does take or attempt to take such action, Party B shall provide timely and reasonable cooperation to Party A, if requested by Party A, and

13. The following Mobile-Sierra clause is added as a new Section 10.12:

Standard of Review/Modifications.
(a) Absent the agreement of all Parties to the proposed change, the standard of review for changes to any rate, charge, classification, term or condition of this Agreement, whether proposed by a Party (to the extent that any waiver in subsection (b) below is unenforceable or ineffective as to such Party), a non-party or standard of review set forth in United Gas Pipe Line Co. v. Mobile Gas Service Corp., 350 U.S. 332 (1956) and Federal Power Commission v. Sierra Pacific Power Co., 350 U.S. 348 (1956) and clarified by Morgan Stanley Capital Group Inc. v. Public Util. Dist. No. 1 of Snohomish, 554 U.S. 527 (2008) and further refined in NRG Power Marketing v. Maine Public Utilities Commission, 558 U.S. 165 (2010) (the - (b) In addition, and notwithstanding the foregoing subsection (a), to the fullest extent permitted by applicable law, each Party, for itself and its successors and assigns, hereby expressly and irrevocably waives any rights it can or may have, now or in the future, whether under §§ 205 and/or 206 of the Federal Power Act or otherwise, to seek to obtain from FERC by any means, directly or indirectly (through complaint, investigation or otherwise), and each hereby covenants and agrees not at any time to seek to so obtain, an order from FERC changing any section of this Agreement specifying the rate, charge, classification, or other term or condition agreed to by the Parties, it being the express intent of the Parties that, to the fullest extent permitted by applicable law, neither Party shall unilaterally seek to obtain from FERC any relief changing the rate, charge, classification, or other term or condition of this Agreement, notwithstanding any subsequent changes in applicable law or market conditions that may occur. In the event it were to be determined that applicable law precludes the Parties from waiving their rights to seek changes from FERC to their market-based power sales contracts (including entering into covenants not to do so) then this subsection (b) shall not apply, provided that, consistent with the foregoing subsection (a), n

14. The following is added as a new Section 10.13:

Physical Transactions. The Parties understand and agree that the Transactions under this Agreement are physical transactions for deferred delivery, and that the Parties contemplate making or taking physical delivery of electric energy or capacity attributes. Party B is a commercial entity engaged in the business 20 of 92
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15. The following is added as a new Section 10.14:

Imaged Agreement. Any original executed Agreement, Confirmation or other related document may be if introduced as evidenced on paper, the Confirmation, and all computer records of the foregoing, if introduced as evidence in printed format, in any judicial, arbitration, mediation or administrative proceedings, will be admissible as between the Parties to the same extent and under the same conditions as other business records originated and maintained in documentary form. Neither Party shall object to the admissibility of the Confirmation or the Imaged Agreement (or photocopies of the Confirmation or the Imaged Agreement) on the basis that such were not originated or maintained in documentary form

16. The following is added as a new Section 10.15:

Generally Accepted Accounting Principles
shall mean, with respect to an entity and its financial statements, generally accepted accounting principles, consistently applied, adopted or used in the jurisdiction of the entity whose financial statements are being considered

17. The following is added as a new Section 10.16:

No Recourse Against Constituent Members of Party B. Party B is organized as a Joint Powers Authority in accordance with the Joint Exercise of Powers Act of the State of California (Government Code Section 6500, et seq.) and is a public entity separate from its constituent members. Party B will solely be responsible for all debts, obligations and liabilities accruing and arising out of this Agreement. Party A will have no rights and will not make any claims, take any actions or assert any remedies against any of ers, directors, advisors, contractors, consultants or employees

18. The following is added as a new Section 10.17:

Index Transactions. If the Contract Price for a Transaction is determined by reference to a third-party information source, then the following provisions shall be applicable to such Transaction:
(a) Market Disruption. If a Market Disruption Event occurs during a Determination Period, the Floating Price for the affected Trading Day(s) shall be determined by reference to the fallback Price Source specified in the Confirmation for the relevant Transaction, if any; provided, however, if no fallback Price Source is specified or if the Floating Price cannot be determined by reference to the fallback Price Source, then the Parties shall negotiate in good faith to agree on the Floating Price (or a method for determining the Floating Price), and if the Parties have not so agreed on or before the second Business Day following the first Trading Day on which the Market Disruption Event occurred or existed, then the Floating Price shall be deemed to be the arithmetic mean of the Floating Prices determined by at least three leading, independent dealers in the principal trading market for the relevant commodity, none of which are affiliates of either Party, taking into consideration the latest available quotation for the relevant commodity and any other information that the Parties and the dealers in good faith deem relevant. Such dealers will be jointly appointed by the Parties. If, by the fifth Business Day following the first Trading Day on which that Market Disruption Event occurred or existed, the Parties have not agreed upon the dealers or a determination of the Floating Price cannot be obtained from at least three dealers, the relevant Transaction(s) will be terminated as of such fifth Business Day in accordance with the methodology specified in Section 5.3, except that each Party will determine a Settlement Amount 21 of 92
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Period of a Transaction.
principal trading market specified
in the relevant Transaction.

Source.

Market Disruption Event events:
(a) the failure of the Price Source to announce or publish the specified Floating Price or information necessary for determining the Floating Price; (b) the failure of trading to commence or the permanent discontinuation or material suspension of trading in the relevant options contract or commodity on the Exchange or in the market specified for determining the Floating Price; (c) the temporary or permanent discontinuance or unavailability of the Price Source; (d) the temporary or permanent closing of any Exchange specified for determining the Floating Price; (e) a material change in the formula for or the method of determining the Floating Price; (f) a material change in the content, composition or constitution of the commodity or the contract on which the Floating Price is based; (g) the number of applicable contracts traded on the relevant Exchange on the relevant Trading Day is fewer than the minimum number of contracts specified in the applicable Confirmation; or (h) a material limitation is imposed on trading in the relevant contracts or commodity as specified in the applicable Confirmation. reference, including an Exchange) containing (or reporting) the specified price (or prices from which the specified price is calculated) specified in the relevant Transaction.

Source is an RTO.
have published the Floating Price.
(b) Revisions to Published Prices. For purposes of determining the Floating Price for any day, if the price published or announced on a given day or used or to be used to determine the Floating Price is subsequently revised and the revision is published or announced by the person responsible for that publication or announcement within the later of (1) one-hundred and eighty (180) days of the original publication, announcement or availability or (2) in the case of RTO Transactions only, either Party may notify the other Party of (i) that revision and (ii) the amount (if any) that is payable as a result of that revision. If, not later than thirty (30) days after publication or announcement of that revision, a Party gives notice that an amount is so payable, the Party that originally either received or retained such amount will, not later than three (3) Business Days after the effectiveness of that notice, pay, subject to any applicable conditions precedent, to the other Party that amount, together with interest at the Interest Rate for the period from and 22 of 92
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19. The following is added as a new Section 10.18:

Each Party acknowledges and agrees that (i) all payments made or to be made by one Party to the other Code, (ii) all transfers of Performance Assurance by one Party to the other Party under this Agreement (iii) each Party shall have the
tting
(iv) electricity delivered hereunder
(v) the Parties are entities entitled
to the rights under, and protections afforded by, Sections 362, 546, 553, 556, 560, 561 and 562 of the Bankruptcy Code, and (vi) each Transaction that is not executed or traded on a trading facility, as defined in the Commodity Exchange Act, is subject to individual negotiation by the Parties

20. The following is added as a new Section 10.19:
. Upon request, Party A shall provide to Party B (i) a certificate of good standing issued by the Delaware Secretary of State as of a recent date, (ii) resolutions of the managers, members, or other governing body, as applicable, of Party A approving the execution, delivery and performance of this Master Agreement and any Confirmations executed in connection therewith, and (iii) the incumbency and signatures of the signatories of Party A executing this Master Agreement and any Confirmations executed in connection herewith
SCHEDULE M: GOVERNMENTAL ENTITY OR PUBLIC POWER SYSTEMS. Schedule M is hereby deleted in its entirety and replaced with the following:

1. The Parties agree to add the following definitions to Article One:

Act
Governmental Entity or Public Power System
public power authority, public utility district, joint action agency, or other similar political subdivision or public entity of the United States, one or more States or territories or any combination thereof. 2. Force Majeure any action ta

3. The Parties agree to add the following sections to Article Three:

Section 3.4 . Upon request by Party A, Party B shall provide Party A (a) certified copies of all ordinances, resolutions, public notices and other documents evidencing the necessary authorizations with respect to the execution, delivery and performance by Party B of this Master Agreement and (b) the incumbency and signatures of the signatories of Party B executing this Master Agreement and any Confirmations executed in connection herewith, and setting forth the name and signatures of employees of Party B with authority to act on behalf of Party B.

Section 3.5 No Immunity Claim. Party B warrants and covenants that with respect to its contractual obligations hereunder and performance thereof, it will not claim immunity on the grounds of sovereignty or similar grounds with respect to this Master Agreement or any credit support provided with respect to 23 of 92
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©COPYRIGHT 2000 by the Edison Electric Institute and National Energy Marketers Association this Master Agreement or the Collateral Annex from (a) suit, (b) jurisdiction of court (including a court located outside of the jurisdiction of its organization), (c) relief by way of injunction, order for specific performance or recovery of property, (d) attachment of assets, or (e) execution or enforcement of any judgment; provided, however, that nothing in this Agreement shall waive the obligations and/or rights set forth in the California Government Claims Act (Government Code Section 810 et seq.).

4. The Parties agree to add the following representations and warranties to Section 10.2:

Governmental Entity or Public Power System represents and warrants to the other Party continuing throughout the term of this Master Agreement, with respect to this Master Agreement and each Transaction, as follows: (i) all acts necessary to the valid execution, delivery and performance of this Master Agreement, including without limitation, competitive bidding, public notice, election, referendum, prior appropriation or other required procedures has or will be taken and performed as required under the Act and the Public Pow
the governing body of Governmental Entity or Public Power System are the duly elected or appointed incumbents in their positions and hold such positions in good standing in accordance with the Act and other applicable law, (iii) entry into and performance of this Master Agreement by Governmental Entity or Public Power System are for a proper public purpose within the meaning of the Act and all other relevant constitutional, organic or other governing documents and applicable law, (iv) the term of this Master Agreement does not extend beyond any applicable limitation imposed by the Act or other relevant constitutional, organic or other governing documents and applicable law, (v) t obligations to make payments hereunder are unsubordinated obligations and such payments are (a) operating and maintenance costs (or similar designation) which enjoy first priority of payment at all times under any and all bond ordinances or indentures to which it is a party, the Act and all other relevant constitutional, organic or other governing documents and applicable law or (b) otherwise not subject to any prior claim under any and all bond ordinances or indentures to which it is a party, the Act and all other relevant constitutional, organic or other governing documents and applicable law and are available without limitation or deduction to satisfy all Governmental Entity or Public Power System obligations hereunder and under each Transaction or (c) to be made solely from a Special Fund, (vi) entry into and performance of this Master Agreement and each Transaction by the Governmental Entity or Public Power System will not adversely affect the exclusion from gross income for federal income tax purposes of interest on any obligation of Governmental Entity or Public Power System otherwise entitled to such exclusion, and (vii) obligations to make payments hereunder do not constitute any kind of indebtedness of Governmental Entity or Public Power System or create any kind of lien on, or security interest in, any property or revenues of Governmental Entity or Public Power System which, in either case, is proscribed by any provision of the Act or any other relevant constitutional, organic or other governing documents and applicable law, any order or judgment of any court or other agency of government applicable to it or

5. The Parties agree to add the following sentence at the end of Section 10.6 - Governing Law:

SCHEDULE P: PRODUCTS AND RELATED DEFINITIONS. 1. The Parties agree to add the following definitions to Schedule P:

CAISO Energy
the Buyer shall purchase a quantity of energy equal to the hourly quantity without Ancillary Services (as a schedule coordinator to schedule coordinator transaction pursuant to the applicable tariff and protocol 24 of 92
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Agreement as amended, in Service Schedule C as Firm Capacity/Energy Sale or Exchange Service.

WSPP Agreement

2. The Parties agree to add the following new Section 7 to Schedule P:

Other Products and Service Levels: The Parties may agree to use a product/service level defined by a different agreement (e.g., the WSPP Agreement, the California Independent System Operator tariff, etc.) for a particular Transaction. Unless the Parties expressly state and agree that all the terms and conditions of such other agreement will apply to any such Transaction, the Transaction shall be subject to all the terms of this Agreement, except that (1) all service level/product definitions; (2) the regional reliability requirements and guidelines; and (3) Force Majeure/Uncontrollable Force definitions shall have the meaning ascribed to them in the different agreement in effect on the date the Transaction was entered into.

Provided, however, with respect to Transactions subject to the WSPP Agreement, the methodology for calculating the payments for failure to deliver or receive, under Sections 4.1 and 4.2 hereto, shall be in

3. The Parties may from time to time by notice to each other mutually agree to adopt product definitions, delivery point language and definitions, and conversion conventions, that are posted by the Edison Electric Institute to its website as optional language for the Master Power Purchase and Sale Agreement. [Signatures appear on the following page.]
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©COPYRIGHT 2000 by the Edison Electric Institute and National Energy Marketers Association IN WITNESS WHEREOF, the Parties have caused this Master Agreement to be duly executed as of the Effective Date.

CITADEL ENERGY MARKETING LLC
By: Citadel Advisors LLC, its Manager

CENTRAL COAST COMMUNITY ENERGY
AUTHORITY, a California joint powers
authority
By:

Name:

Title:

By:

Name:

Title:

Approved as to form:

By:

Name:

Title:

DISCLAIMER: This Master Power Purchase and Sale Agreement was prepared by a committee of Marketers Association
markets. Neither EEI nor NEM nor any member company nor any of their agents, representatives or attorneys shall be responsible for its use, or any damages resulting therefrom. By providing this Agreement EEI and NEM do not offer legal advice and all users are urged to consult their own legal counsel to ensure that their commercial objectives will be achieved and their legal interests are adequately protected.
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1 PARAGRAPH 10
to the

COLLATERAL ANNEX
to the

EEI MASTER POWER PURCHASE AND SALE AGREEMENT

CREDIT ELECTIONS COVER SHEET
Between
Citadel Energy Marketing LLC
and
Paragraph 10. Elections and Variables
I. Collateral Threshold.

A. Party A Collateral Threshold.
means the lesser of (a) the maximum guaranteed amount
and (b) ;
provided, however, that if an Event of Default has occurred and is continuing with respect to Party A, o (0).

Guarantor] on the relevant date of determination, or (b) zero if on the relevant date of determination [Party A][its Guarantor] does not have a Credit Rating from the rating agency specified below or an Event of Default or a Potential Event of Default with respect to Party A has occurred and is continuing; provided, however, in the event that, and on the date that, Party A cures the Potential Event of Default on or prior to the date that Party A is required to post Performance Assurance to Party B pursuant to a demand made by Party B pursuant to the provisions of the Collateral Annex on or after the occurrence of such Potential Event of Default, (i) the Collateral Threshold for Party A shall automatically increase from zero to the Threshold Amount and (ii) Party A shall be relieved of its obligation to post Performance Assurance pursuant to such demand.

Party A
Collateral Threshold Credit Rating
$__________ _______ (or above)
$__________ _______
$__________ _______
$__________ _______
$__________ Below _______
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2 (a) at any time Party A b) at any time an
Event of Default with respect to Party A has occurred and is continuing.

Party A
Collateral Threshold S&P Credit Rating
$ 20,000,000 AA- (or above) Aa3 (or above)
$ 15,000,000 A+ A1
$ 15,000,000 A A2
$ 15,000,000 A- A3
$ 12,500,000 BBB+ Baa1
$ 12,500,000 BBB Baa2
$ 10,000,000 BBB- Baa3
$ 5,000,000 BB+ Ba1
$ 2,500,000 BB Ba2
$ 0 BB- (or below) Ba3 (or below)
The amount of the Guaranty Agreement dated _____ from _____, as amended than $______. Other:

B. Party B Collateral Threshold.
provided, however, that the
Collateral Threshold for Party B shall be zero upon the occurrence and during the continuance of an Event of Default or a Potential Event of Default with respect to Party B; and provided further that, in the event that, and on the date that, Party B cures the Potential Event of Default on or prior to the date that Party B is required to post Performance Assurance to Party A pursuant to a demand made by Party A pursuant to the provisions of the Collateral Annex on or after the occurrence of such Potential Event of Default, (i) the Collateral Threshold for Party B shall automatically increase from zero to the Threshold Amount and (ii) Party B shall be relieved of its obligation to post Performance Assurance pursuant to such demand.

Guarantor] on the relevant date of determination, or (b) zero if on the relevant date of determination [Party B][its Guarantor] does not have a Credit Rating from the rating agency specified below or an Event of Default or a Potential Event of Default with respect to Party B has occurred and is continuing; provided, however, in the event that, and on the date that, Party B cures the Potential Event of Default on or prior to the date that Party B is required to post Performance Assurance to Party A pursuant to a demand made by Party A pursuant to the provisions of the Collateral Annex on or after the occurrence of such Potential Event of Default, (i) the Collateral Threshold for Party B shall automatically increase from zero to the Threshold Amount and (ii) Party B shall be relieved of its obligation to post Performance Assurance pursuant to such demand:
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3 Party B
Collateral Threshold Credit Rating
$__________ _______ (or above)
$__________ _______
$__________ _______
$__________ _______
$__________ Below _______
The lesser of: (a) the
the relevant date of determination, or (b) zero if on the relevant date of determination Party B does not have a Credit Rating from the rating agency specified below or an Event of Default with respect to Party B has occurred and is continuing.

Party B
Collateral Threshold S&P Credit Rating
AA- (or above)
A+
A
A-BBB+
BBB
BBB-BB+
BB
BB- (or below)
The amount of the Guaranty Agreement dated _____ from _____, as amended Collateral Threshold be greater
than $______. Other see attached threshold terms
II. Eligible Collateral and Valuation Percentage.

Party A Party B Valuation Percentage
(A) Cash [X] [X] 100%
(B) Letters of
Credit
[X] [X] 100% unless a Letter of Credit Default
shall have occurred and be continuing with
respect to such Letter of Credit in which
case the Valuation Percentage shall be zero
(0).
(C) Other [ ] [ ] ________%
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4 III. Independent Amount.

A. Party A Independent Amount.

Party A shall have a Fixed Independent Amount of $0 (zero). If the Fixed Independent Amount option is selected for Party A, then Party A (which shall be a Pledging Party with respect to the Fixed IA Performance Assurance) will be required to Transfer or cause to be Transferred to Party B (which shall be a Secured Party with respect to the Fixed IA Performance Assurance) Performance Assurance with a Collateral Value equal to the amount of such Independent Assurance shall not be reduced for so long as there are any outstanding obligations between the Parties as a result of the Agreement, and shall not be taken into account quirement pursuant to the Collateral
Annex. Except as expressly set forth above, the Fixed IA Performance Assurance shall be held and maintained in accordance with, and otherwise be subject to, Paragraphs 2, 5(b), 5(c), 6, 7 and 9 of the Collateral Annex.

Party A shall have a Full Floating Independent Amount of $______________. If the Full Floating Independent Amount option is selected for Party A, then for of the Collateral Annex, such Full Floating Independent Amount for Party A shall be added by Party B to its Exposure Amount for purposes of determining Net Exposure pursuant to Paragraph 3(a) of the Collateral Annex.

Party A shall have a Partial Floating Independent Amount of $______________.

If the Partial Floating Independent Amount option is selected for Party A, then Party A will be required to Transfer or cause to be Transferred to Party B Performance Assurance with a Collateral Value equal to the amount of such time Party A otherwise has a Collateral Requirement (not taking into consideration the Partial Floating Independent Amount) pursuant to Paragraph 3 of the Collateral Annex. The Partial Floating IA Performance Assurance shall not be reduced so long as Party A has a Collateral Requirement (not taking into consideration the Partial Floating Independent Amount). The Partial Floating Independent Amount pursuant to the Collateral Annex. Except as expressly set forth above, the Partial Floating Independent Amount shall be held and maintained in accordance with, and otherwise be subject to, the Collateral Annex.
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5 B. Party B Independent Amount.

Party B shall have a Fixed Independent Amount of $0 (zero). If the Fixed Independent Amount Option is selected for Party B, then Party B (which shall be a Pledging Party with respect to the Fixed IA Performance Assurance) will be required to Transfer or cause to be Transferred to Party A (which shall be a Secured Party with respect to the Fixed IA Performance Assurance) Performance Assurance with a Collateral Value equal to the amount of such Independent Assurance shall not be reduced for so long as there are any outstanding obligations between the Parties as a result of the Agreement, and shall not be taken into account Annex. Except as expressly set forth above, the Fixed IA Performance Assurance shall be held and maintained in accordance with, and otherwise be subject to, Paragraphs 2, 5(b), 5(c), 6, 7 and 9 of the Collateral Annex.

Party B shall have a Full Floating Independent Amount of $______________. If the Full Floating Independent Amount Option is selected for Party B then for purposes of calculating Pa
of the Collateral Annex, such Full Floating Independent Amount for Party B shall be added by Party A to its Exposure Amount for purposes of determining Net Exposure pursuant to Paragraph 3(a) of the Collateral Annex.

Party B shall have a Partial Floating Independent Amount of $______________.

If the Partial Floating Independent Amount option is selected for Party B, then Party B will be required to Transfer or cause to be Transferred to Party A Performance Assurance with a Collateral Value equal to the amount of such time Party B otherwise has a Collateral Requirement (not taking into consideration the Partial Floating Independent Amount) pursuant to Paragraph 3 of the Collateral Annex. The Partial Floating IA Performance Assurance shall not be reduced for so long as Party B has a Collateral Requirement (not taking into consideration the Partial Floating Independent Amount). The Partial Floating Independent Amount pursuant to the Collateral Annex. Except as expressly set forth above, the Partial Floating Independent Amount shall be held and maintained in accordance with, and otherwise be subject to, the Collateral Annex.

IV. Minimum Transfer Amount.

A. Party A Minimum Transfer Amount: $ 100,000
B. Party B Minimum Transfer Amount: $ 100,000
provided that, in each case, (i) if the Party is a Defaulting Party at the time, its Minimum Transfer Amount will be zero, (ii) if a Secured Party is holding an amount of Performance Assurance at the but
for its Minimum Transfer Amount, the Secured Party would be required to make a Transfer under Paragraph 4, the Minimum Transfer Amount for the Secured Party will be zero, and (iii) if no Transactions are outstanding, then the Minimum Transfer Amount for both Parties will be zero. 31 of 92
6 V. Rounding Amount.

A. Party A Rounding Amount: $ 10,000
B. Party B Rounding Amount: $ 10,000
VI. Administration of Cash Collateral.

A. Party A Eligibility to Hold Cash.

Party A shall not be entitled to hold Performance Assurance in the form of Cash.

Performance Assurance in the form of Cash shall be held in a Qualified Institution in accordance with the provisions of Paragraph 6(a)(ii)(B) of the Collateral Annex.

Party A shall pay to Party B in accordance with the terms of the Collateral Annex the amount of interest it receives from the Qualified Institution on any Performance Assurance in the form of Cash posted by Party B.

Party A shall be entitled to hold Performance Assurance in the form of Cash provided that the following conditions are satisfied: (1) it is not subject to an Event of Default;
Institution; and (3) Cash shall be held only in any jurisdiction within the United States. To the extent Party A is entitled to hold Cash, the Interest Rate payable to Party B on Cash shall be as selected below:

Party A Interest Rate.

Federal Funds Effective Rate - the rate for that day opposite the statistical release designated as H.15(519), or any successor publication, published by the Board of Governors of the Federal Reserve System.

Other - zero percent (0.00%)
B. Party B Eligibility to Hold Cash.

Party B shall not be entitled to hold Performance Assurance in the form of Cash.

Performance Assurance in the form of Cash shall be held in a Qualified Institution in accordance with the provisions of Paragraph 6(a)(ii)(B) of the Collateral Annex.

Party B shall pay to Party A in accordance with the terms of the Collateral Annex the amount of interest it receives from the Qualified Institution on any Performance Assurance in the form of Cash posted by Party A.

Party B shall be entitled to hold Performance Assurance in the form of Cash provided that the following conditions are satisfied: (1) it is not subject to an Event of Default;
Institution; and (3) Cash shall be held only in any jurisdiction within the United States. To the extent Party B is entitled to hold Cash, the Interest Rate payable to Party A on Cash shall be as selected below:
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7 Party B Interest Rate.

Federal Funds Effective Rate - the rate for that day opposite the statistical release designated as H.15(519), or any successor publication, published by the Board of Governors of the Federal Reserve System.

Other zero percent (0.00%)
VII. Notification Time.

Other - 10:00 a.m. Pacific Prevailing Time on a Local Business Day VIII. Demands and Notices.

All demands, specifications and notices to Party A under this Collateral Annex will be made to:

Citadel Energy Marketing LLC
c/o Citadel Americas LLC
Southeast Financial Center
200 S. Biscayne Blvd., Suite 3300
Miami, FL 33131
Attn.: Collateral Management
Telephone No.: (312) 395-3005
Email: [email protected]
Posted Collateral for Transfer to Party A in the form of Letters of Credit as well as amendments thereto shall be delivered to the address above, attention: Treasury/Credit.

All demands, specifications and notices to Party B under this Collateral Annex will be as set forth on the Cover Sheet to the Master Agreement. IX. General.

Amendments to Introductory Paragraph:
(i) The first paragraph of the introduction shall be amended to read as follows:

Collateral
Annex I Master Power Purchase
and Sale Agreement dated as of February 13, 2023 between Citadel Energy Marketing LLC Party A
Party B
Agreement this
Collateral Annex but not defined herein shall have the meanings given to such terms in the 33 of 92
8 Amendments to Definitions:
(i) Credit Rating amended and restated in its entirety as follows:
mean, with respect to an entity on any date of determination, the respective rating then assigned to its unsecured and senior, long-term debt or deposit (ii) Credit Rating Event
(iii) Downgraded Party
(iv) Letter of Credit
Cover Sheet thereto, and the Collateral Annex and replaced with the following:
or
confirmed by a Qualified Institution, substantially in the form attached hereto as Schedule 1 to this Paragraph 10 to the Collateral Annex or in such other form as may be reasonably acceptable to the beneficiary thereof, in each case, with such changes to the terms in that form as the issuing bank may require and as may be reasonably acceptable to the beneficiary thereof (v) Letter of Credit Default as follows:
a. such Letter of Credit shall fail to be a Qualified Institution ; and b. A new clause (f) shall be added after the existing clause (e) and immediately before a Party as the Pledging Party
that is confirmed by a Qualified Institution, the confirming entity. (vi) Local Business Day
(vii) Notification Time
(viii) Performance Assurance
(ix) Qualified Institution
laws of the United States or a political subdivision thereof, with a Credit Rating of at least - 34 of 92
9 (x) Reference Market-maker
(xi) Secured Party
Amendments to Paragraph 4:
(i)
amended to read as follows:
of a Pledging Party on or before the Notification Time on a Local Business Day shall be provided by not later than the close of business on the third Local Business Day; and (ii) Performance Assurance demanded of a Pledging Party after the Notification Time on a Local Business Day shall be provided by not later than the close of business on the fourth Local Business Day.
(ii) The following is added after the last sentence of Paragraph 4:
partial failure to exercise and no delay in exercising, on the part of Party A (or its Custodian) or Party B (or its Custodian), any right, remedy, power or privilege permitted with respect to transfer timing (or any other deadline) pursuant to Paragraph 4, as modified herein, regardless of the frequency or constancy of such failure or delay, shall operate in any way as a waiv
Amendments to Paragraph 5:
(i)
Party for the benefit of
(ii)
. (iii) Paragraph 5(a) shall be
. Amendments to Paragraph 6:
(i)
(ii) curity interest of the
Non-
(iii) Paragraphs 6(b)(iii) and 6(b)(iv) are deleted and replaced in their entirety as follows:
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10 Upon the occurrence of a Letter of Credit Default, the Pledging Party agrees to Transfer to the Secured Party either a substitute Letter of Credit or other Eligible Collateral, in each case on or before the first (1st) Local Business Day after the occurrence thereof (or the second (2nd) Local Business Day after the occurrence thereof if only clause (a) under the definition of Letter of Credit Default applies).
(iv) Notwithstanding anything herein to the contrary, (A) upon or at any time after the occurrence and during the continuation of an Event of Default with respect to the Pledging Party or (B) if an Early Termination Date has occurred or been designated, then the Secured Party may draw on any outstanding Letter of Credit in an amount (up to the face amount for which the Letter of Credit has been issued) that is equal to all amounts that are due and owing from the Pledging Party but have not been paid to the Secured Party within the time allowed for such payments under this Agreement (including any related notice or grace period or both). If a Letter of Credit Default exists with respect to any Letter of Credit provided by or on behalf of the Pledging Party, then the Secured Party may draw on the Letter of Credit subject to such Letter of Credit Default in an amount equal to the entire, undrawn portion of such Letter of Credit. Cash proceeds received from drawing upon any Letter of Credit shall be deemed Performance Assurance as security for the Pledging tions to the Secured Party and the Secured Party shall have the rights and remedies set forth in Paragraph 7 with respect to such cash proceeds. Notwithstanding the Pledging Party shall remain liable (y) for any failure to Transfer sufficient Performance Assurance or (z) for any amounts owing to the Secured Party and remaining unpaid after Amendments to Paragraph 7:
(i) Paragraph 7(a) is amended as follows:
a. d
to the Pledging Party has occurred and
b. ;
and
c. off any
(ii) Paragraph 7(b) shall be amended by deleting it in its entirety and inserting the words (iii) Paragraph 7(d) is amended and restated in its entirety as follows (with deleted text crossed-out (e.g., crossed out) and added text double underlined (e.g., double underlined) for illustrative purposes only):
(d) In addition to the provisions of Paragraph 7(a), if at any time (i) an Event of Default with respect to the Secured Party has occurred and is continuing or (ii) an Early Termination Date has occurred or been designated as a result of an Event of Default with respect to the Secured Party (other than an Early Termination Date relating to less than all 36 of 92
11 Transactions where the Secured Party has paid in full all of its obligations that are then due under the Agreement), then:
(1) the Secured Party will be obligated immediately to Transfer all Performance Assurance (including other than any Letter of Credit) and the Interest Amount, if any, to the Pledging Party; and
(2) the Pledging Party may do any one or more of the following: (x) exercise any of the rights and remedies of a pledgor with respect to the Performance Assurance (other than any Letter of Credit), including any such rights and remedies under law then in effect; and (y) to the extent that the Performance Assurance (other than any Letter of Credit) or the Interest Amount is not Transferred to the Pledging Party as required in (1) above, setoff amounts payable to the Secured Party against the Performance Assurance (other than Letters of Credit) held by the Secured Party or to the extent its rights to setoff are not exercised, withhold payment of any remaining amounts payable by the Pledging Party, up to the value of any remaining Performance Assurance (other than any Letter of Credit) held by the Secured Party, until the Performance Assurance is Transferred to the Pledging Party.; and (z) exercise rights and remedies available to the Pledging Party under the terms of any Letter of Credit; and
(3) the Secured Party shall be prohibited from drawing on any Letter of Credit that has been posted by the Pledging Party for its benefit.
(iv) New Paragraphs 7(e) and 7(f) are added as follows:

The Secured Party will transfer to the Pledging Party any proceeds and Performance Assurance remaining after liquidation, set-off and/or application under Paragraphs 7(a) and 7(d) after satisfaction in full of all amounts payable by the Pledging Party with respect to any Obligations; the Pledging Party will in all events remain liable for any amounts unpaid after liquidation, set-off and/or application under Paragraphs 7(a) and 7(d).
(f) When no amounts are or thereafter may become payable by the Pledging Party with respect to any Obligations, the Secured Party will Transfer to the Pledging Party all Amendments to Paragraph 8:
(i) Paragraphs 8(a) and 8(b) are both amended by adding after the third sentence of each the Secured P Parties will appoint a mutually acceptable leading market participant in the relevant market to make such calculation and such expense will be shared equally by the Parties.
(ii) Paragraph 8 is amended by inserting the following new subparagraph 8(c) at the end thereof:

Each quotation from a Reference Market-maker will be for an amount, if any, that would be paid to the Party requesting the quotation (expressed as a negative number) or by the Party requesting the quotation (expressed as a positive number) in consideration of an agreement between such Party (taking into account this Collateral Annex and the existence 37 of 92
12 of any Guarantor with respect to the obligations of such Party) and the quoting Reference Market-maker to enter into a transaction that would have the effect of preserving for the Party requesting the quotation the economic equivalent of any payment or delivery (whether the underlying obligation was absolute or contingent and assuming the satisfaction of each applicable condition precedent) by the Parties in respect of such Transaction or group of Transactions. The costs of retaining Reference Market-makers for the purposes of this Paragraph 8 shall be borne equally by the Secured Party and the Pledging Party. The determination made by such Reference Market-makers shall be binding and conclusive o
Amendments to Paragraph 10:
(i) Paragraph 10 shall be amended by inserting the following new subparagraph 10(VI)(C) at the end thereof:
been paid with
respect to Performance Assurance in the form of Cash (all of which may be retained by the Pledging Party and shall not be considered Performance Assurance):
(x) if the Interest Amount for an Interest Period is a positive number, upon request of the Pledging Party, the Secured Party will transfer to the Pledging Party such Interest Amount by the fifth Business Day after the end of such Interest Period, to the extent that a Collateral Requirement as calculated by the Pledging Party would not be created or increased by that Transfer; any Interest Amount or portion thereof not transferred pursuant to this subsection (x) of this Paragraph will constitute Performance Assurance in the form of Cash and will be subject to the security interest granted
(ii) Schedule 1 to the Collateral Annex is deleted in its entirety and replaced with the form of Letter of Credit attached as Schedule 1 to this Paragraph 10 to the Collateral Annex.

With respect to the Collateral Threshold, Independent Amount, Minimum Transfer Amount and Rounding Amount, if no selection is made in this Cover Sheet with respect to a Party, then the applicable amount in each case for such Party shall be zero (0). In addition, with is made with respect to a Party, then such Party shall not be entitled to hold Performance Assurance in the form of Cash and such Cash, if any, shall be held in a Qualified Institution pursuant to Paragraph 6(a)(ii)(B) of the Collateral Annex. 38 of 92
39 of 92
SCHEDULE 1

FORM OF LETTER OF CREDIT
[Issuing Bank Letterhead and Address]
IRREVOCABLE STANDBY LETTER OF CREDIT NO. [XXXXXXX]
Date: ____________________
Bank Ref.: ________________
Amount: US$[XXXXXXXX]
Expiration Date: ___________
Beneficiary:
[_________]
Ladies and Gentlemen:
insert bank name and address] (
Irrevocable Standby Letter of Credit No. [XXXXXXX [insert Beneficiary name] XXXXXX] (United States
Dollars [XXXXX] and 00/100), pursuant to that certain EEI Master Power Purchase and Sale Agreement, together with the Cover Sheet, the Collateral Annex and Paragraph 10 to the Collateral Annex dated as of _________, 2023 and as amended or otherwise modified from time to time between Applicant and Beneficiary
expire on [insert date], or any expiration date extended in accordance with the terms he Funds under this Letter of Credit are available to Beneficiary by presentation on or before the Expiration Date of a dated statement purportedly signed by your duly authorized representative, in the form attached hereto as Exhibit A, referencing our Letter of Credit No. [XXXXXXX The Drawing Certificate may be presented by (a) U.S. mail, (b) overnight courier or (c) as a PDF attachment to an email to [bank email address]. Transmittal by email shall be deemed delivered when received.

The original of this Letter of Credit (and all amendments, if any), or any copy thereof, is not required to be presented in connection with any presentment of a Drawing Certificate by Beneficiary hereunder in order to receive payment.

We hereby agree with the Beneficiary that all documents presented under and in compliance with the terms of this Letter of Credit, that such drafts will be duly honored upon presentation to the Issuer on or before the Expiration Date.

All payme
indicated by Beneficiary in its Drawing Certificate or in a communication accompanying its Drawing Certificate.
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Partial draws are permitted under this Letter of Credit, and this Letter of Credit shall remain in full force and effect with respect to any continuing balance.

It is a condition of this Letter of Credit that the Expiration Date shall be deemed automatically extended without an amendment for a one year period beginning on the present Expiration Date hereof and upon each anniversary for such date, unless at least one hundred twenty (120) days prior to any such Expiration Date we have sent to you written notice by overnight courier service that we elect not to extend this Letter of Credit, in which case it will expire on the date specified in such notice. No presentation made under this Letter of Credit after such Expiration Date will be honored.

Notwithstanding any reference in this Letter of Credit to any other documents, instruments or agreements, this Letter of Credit contains the entire agreement between Beneficiary and Issuer relating to the obligations of Issuer hereunder.
[This Letter of C
International Chamber o ISP
ISP98, shall be governed and construed in accordance with the laws of state of California.]1 Please address all correspondence regarding this Letter of Credit to the attention of the Letter of Credit Department at [insert bank address information ter of Credit No. [XXXXXXX
[XXX-XXX-XXXX] and have this Letter of Credit available. [All notices to Beneficiary shall be in writing and are required to be sent by certified letter, overnight courier, or delivered in person to: [insert Beneficiary Notice Information]. Only notices to Beneficiary meeting the requirements of this paragraph shall be considered valid. Any notice to Beneficiary which is not in accordance with this paragraph shall be void and of no force or effect.]2 [Bank Name] _ ___________ [Insert officer name]
[Insert officer title]
1 Bracketed language to be added if required by Issuer. 2 Bracketed language to be added if required by Issuer.
41 of 92
42 of 92
Compiled Financial Statements 1
Compiled Budgetary Comparison Schedule 6
Budget Variance Commentary 10
Financial Dashboard 11
Investment Summary 12
Table of Contents

TREASURER REPORT
Fiscal Year to Date
As of December 31, 2022
43 of 92
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 December 31, 2022, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.

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

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

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

Maher Accountancy
San Rafael, CA
January 31, 2023
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 44 of 92
Current assets
Cash and cash equivalents
Held for working capital 51,300,000 $
Held for reserves 64,516,778
Cash and cash equivalents 115,816,778
Accounts receivable, net of allowance 36,604,989
Accrued revenue 28,027,416
Loan receivable 185,467
Other receivables 18,954,098
Prepaid expenses 803,457
Deposits 12,294,320
Restricted cash 294,000
Investments - held for reserves 92,422,603
Total current assets 305,403,128
Noncurrent assets
Deposits 23,182
Loan receivable 1,614,833
Capital assets, net of depreciation 249,492
Total noncurrent assets 1,887,507
Total assets 307,290,635
Current liabilities
Accrued cost of electricity 50,692,437
Accounts payable 611,909
Other accrued liabilities 1,024,823
User taxes and energy surcharges due to other governments 1,871,564 Security deposits - energy suppliers 2,500,000
Total current liabilities 56,700,733
Noncurrent liabilities
Security deposits - energy suppliers 9,131,250
Total noncurrent liabilities 9,131,250
Total liabilities 65,831,983
Investment in capital assets 249,492
Restricted for security collateral 294,000
Unrestricted 240,915,160
Total net position $ 241,458,652

NET POSITION
As of December 31, 2022

STATEMENT OF NET POSITION

CENTRAL COAST COMMUNITY ENERGY
ASSETS

LIABILITIES
See accountants' compilation report. 2
45 of 92

OPERATING REVENUES
Electricity sales, net 120,872,021 $
Liquidated damages 7,452,000
Other income 19,910
Total operating revenues 128,343,931

OPERATING EXPENSES
Cost of electricity 99,490,758
Contract services 1,636,721
Staff compensation 1,595,630
General and administration 1,419,257
Depreciation 25,519
Total operating expenses 104,167,885
Operating income (loss) 24,176,046

NONOPERATING REVENUES (EXPENSES)
Interest and investment income 1,467,423
Nonoperating revenues (expenses) 1,467,423
CHANGE IN NET POSITION 25,643,469
Net position at beginning of period 215,815,183
Net position at end of period 241,458,652 $
Three Months Ended December 31, 2022

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report. 3
46 of 92

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 123,546,170
Receipts from liquidated damages 147,000
Receipts from suppliers 320,748
Other operating receipts 19,910
Payments to suppliers for electricity (91,979,696)
Payments for other goods and services (3,809,280)
Payments for staff compensation (1,630,475)
Payments of taxes and energy surcharges to other governments (2,263,987) Net cash provided by operating activities 24,350,390

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Principal payments received on loan receivable 199,700

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments to acquire capital assets (55,692)
(55,692)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 385,511
Sales of investments 5,000,000
Purchase of investments (64,160,000)
Net cash provided (used) by investing activities (58,774,489) Net change in cash and cash equivalents (34,280,091)
Cash and cash equivalents at beginning of year 150,390,869 Cash and cash equivalents at end of period $ 116,110,778 Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) $ 115,816,778
Restricted cash 294,000
Cash and cash equivalents $ 116,110,778
Three Months Ended December 31, 2022

STATEMENT OF CASH FLOWS

CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report. 4
47 of 92
Operating income (loss) $ 24,176,046
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation expense 25,519
Provision for uncollectible accounts 1,840,655
(Increase) decrease in:

Accounts receivable, net 8,661,956
Accrued revenue (9,865,470)
Other receivables (8,051,840)
Prepaid expenses (495,038)
Deposits (4,000,390)
Increase (decrease) in:

Accrued cost of electricity 10,617,855
Accounts payable (977,302)
Other accrued liabilities (11,201)
User taxes and energy surcharges due to other governments (70,400) Security deposits - energy suppliers 2,500,000
Net cash provided by operating activities $ 24,350,390

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

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY OPERATING ACTIVITIES
See accountants' compilation report. 5
48 of 92
6 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Central Coast Community Energy
Management is responsible for the accompanying special purpose statements of Central Coast Community Energy (a California Joint Powers Authority) which comprise the budgetary comparison schedule and a supplemental budgetary comparison schedule for the period ended December 31, 2022, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

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

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

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
January 31, 2023
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 49 of 92
2022/23 YTD
Actual
2022/23 Annual
Budget
2022/23 Budget
Less Actual
Expenditures
Cost of energy 99,663,507 $ 377,918,806 $ 278,255,299 $ Data manager 15,476 2,793,200 2,777,724
Utility service fees 434,699 2,100,000 1,665,301
Advertising 18,469 500,000 481,531
Contingency - 1,100,000 1,100,000
Subscriptions 11,575 611,062 599,487
Legal 255,672 1,844,660 1,588,988
IT consulting 260,472 593,469 332,997
Other consultants 228,504 563,000 334,496
Technical consultants 43,121 1,541,093 1,497,972
Employee welfare 174,111 1,086,406 912,295
Retirement plan contributions 109,913 707,508 597,595
Salaries and wages 1,311,606 7,042,640 5,731,034
Energy programs 945,884 15,992,012 15,046,128
Bad debt allowance 1,838,285 7,500,000 5,661,715
Other (not displayed in approved budget) 669,357 3,756,205 3,086,848 Total expenditures $ 105,980,651 $ 425,650,061 $ 319,669,410

CENTRAL COAST COMMUNITY ENERGY

BUDGETARY COMPARISON SCHEDULE
Three Months Ended December 31, 2022
See accountants' compilation report. 7
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2022/23 YTD
Budget
2022/23 YTD
Actual
2022/23 YTD
Budget Variance
(Under) Over
2022/23 YTD
Actual / Budget %
2022/23 Annual
Budget
2022/23 Budget
Less Actual
2022/23 Budget
Remaining /
Budget %

REVENUES AND OTHER SOURCES
Electricity sales $ 127,660,000 $ 122,710,306 $ (4,949,694) 96% 436,500,000 $ $ 313,789,694 72% Less uncollectible accounts (1,875,000) (1,838,285) 36,715 98% (7,500,000) (5,661,715) 75% Revenue for damages - 7,452,000 7,452,000 n/a - (7,452,000) n/a Investment and miscellaneous income - 1,487,333 1,487,333 n/a - (1,487,333) n/a Total revenues and other sources 125,785,000 129,811,354 4,026,354 103% 429,000,000 299,188,646 70% EXPENDITURES AND OTHER USESCurrent Expenditures
Cost of energy 99,663,507 82,035,000 17,628,507 121% 377,919,000 278,255,493 74% Energy programs (incentives and grants) 3,998,000 945,884 (3,052,116) 24% 15,992,000 15,046,116 94% Data manager 23,000 15,476 (7,524) 67% 2,793,000 2,777,524 99% Utility service fees 525,000 434,699 (90,301) 83% 2,100,000 1,665,301 79% Staffing 2,309,000 1,595,630 (713,370) 69% 9,244,000 7,648,370 83% Professional services 1,314,000 598,186 (715,814) 46% 3,397,000 2,798,814 82% Legal services 491,000 272,245 (218,755) 55% 1,965,000 1,692,755 86% Marketing and customer enrollment 248,000 50,405 (197,595) 20% 994,000 943,595 95% Other general & administration 952,000 566,334 (385,666) 59% 3,746,000 3,179,666 85% Total current expenditures 91,895,000 104,142,366 12,247,366 113% 418,150,000 314,007,634 75%Other Uses Capital outlay - 55,693 55,693 n/a - (55,693) n/a
Total other uses - 55,693 55,693 n/a - (55,693)
Total Expenditures and Other Uses 91,895,000 104,198,059 12,303,059 113% 418,150,000 313,951,941 75% Surplus (Deficit) $ 33,890,000 $ 25,613,295 $ (8,276,705) $ 10,850,000 $ (14,763,295) -136% Reserves at end of reporting period:

Held for Working Capital $ 51,300,000 Held for Reserves - Cash and Cash Equivalents 64,516,778 Held for Reserves - Investments 92,422,603 Total 208,239,381 $

CENTRAL COAST COMMUNITY ENERGY

SUPPLEMENTAL BUDGETARY COMPARISON SCHEDULE
Three Months Ended December 31, 2022
See accountants' compilation report. 8
51 of 92
CCA Program Surplus/(Deficit)
per budgetary comparison schedule: 25,613,295 $
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:

Subtract depreciation expense (25,519)
Add back capital asset acquisitions 55,693
Change in Net Position 25,643,469 $

REVENUES, EXPENSES AND CHANGES IN NET POSITION

CENTRAL COAST COMMUNITY ENERGY

BUDGET RECONCILIATION TO STATEMENT OF
Three Months Ended December 31, 2022
See accountants' compilation report. 9
52 of 92
Budget Item YTD Variance Comment
Electric Sales Revenue (3.9%) 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 21.5% 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 (30.9%) Staffing expenses are under budget due to the timing of new hires.

Professional Services (54.5%) This category includes accounting, IT, technical and other consultants.

Legal Costs (44.6%) This category includes outside legal costs for regulatory and energy procurement needs.

Marketing and customer enrollment (79.7%) Variance is mostly due to the lower than anticipated costs of recent customer enrollments.

Data Management Services (32.7%) These fees non-discretionary and are charged on a per customer basis.

Utility Service Fees (17.2%) These are PG&E and SCE fees charged on a per customer basis.

Other General & Administrative (40.5%) This category includes occupancy costs, industry membership dues, and other general and administrative costs.

Energy and Related Programs (76.3%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items

CENTRAL COAST COMMUNITY ENERGY
October 1, 2022 through December 31, 2022
10 53 of 92
$0.9
$12.6
Act
Bud
$21.2
$43.8
$51.1
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
$120.9
$125.8
$429.0
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
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) 418 398 429
Budget 453 425 424 431 393 418 424 426 450 474 481 444
0 100
200
300
400
500
600

CUSTOMERS

SALES VOLUME
429 GWh

STD MARGIN
$0.9M (2.2%)
Δ in NET ASSETS
$2.5M

REVENUE
$44.7M
Cumulative YTD Electricity Sales Cumulative YTD Direct Margin Fiscal Year Electricity Sales are $4.7M behind budget, Margin dollars are $22.5M below budget.

Data Definitions:

CUSTOMERS: Count of active customers from Calpine.

REPORTED / SALES VOLUME: Best available estimate of actual meter volume.  Currently based on 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
Monthly Sales Volume (GWh)
Financial Dashboard: December 2022
Margin %

CUSTOMERS
445,000
ACTIVE
December revenue of $44.7M accounts for
429 GWh in net retail consumption. This
comes in 5Gwh above budgeted volume.

Year‐to‐date electricity revenue is $120.9M
compared to a budget of $125.8M. YTD
Margin of $21.2M is down $10.9M.

The chart to the right shows volume comparison to
budgeted volume.

The charts below display cumulative
revenue and margin $ vs budget.
36%
36%
11%
33%
37%
13%
Res
Com
Ag
YTD Month
39%
38%
9%
32%
38%
14%
Res
Com
Ag
YTD Month
Revenue $44.7
C.O.E. $40.0
OpEx $2.2
Net Income $2.5 2.2%

30.6%
Act
Bud
Margin $
11 BUDGET: Volumes from  FY22/23 budget
54 of 92
Return of Investments YTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CASH AND CASH EQUIVALENTSRiver City Bank - Money Market and other Interest Earning AccountsFunds Invested - Average Balance $ 68,793,882 $ 70,230,463 $ 70,636,473 -$ $ - $ - $ - $ - $ - $ - $ - $ - Gains/Losses/Interest $ 298,945 $ 85,008 $ 94,651 $ 119,286 Average APY 1.48% 1.62% 2.03%INVESTMENTSRiver City Bank - Treasury-indexed productsFunds Invested - Average Balance $ 40,162,814 $ 45,259,882 $ 55,127,902 -$ $ - $ - $ - $ - $ - $ - $ - $ - Gains/Losses/Interest $ 421,567 67,213.37 146,549.22 207,805 - - - - - - - Average APY 2.01% 3.89% 4.52%RBC GAM / Principal Financal Funds Invested - Average Balance $ 75,380,564 $ 75,641,706 $ 75,948,593 -$ $ - $ - $ - $ - $ - $ - $ - $ - Gains/Losses/Interest $ 711,762 143,733.97 261,142.30 306,886.17 - - - - - - - Average APY 2.29% 4.14% 4.85%Benchmark - iShares ICE Short Treasury Index 0.47% 0.47% 0.47%

CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2022 through December 31, 2022
12 55 of 92
Staff Report Item 4
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: Community Advisory Council Report (Information Only) DATE: March 8, 2023

COO REPORT (DISCUSSION ITEM)
COO Shaw provided updates on:
 Staffing Updates
 Power Supply Updates
o Willow Rock Energy Storage Center long duration compressed air storage  Investor-Owned Utility 2023 Electric Generation Rates o Significant increases in wholesale electric rates are pushing IOU rates significantly higher o CCCE rates now 20%-40% under IOU PG&E rates
 Integrated Resource Planning Procurement Mandates
 Customer Support
o Update on LIHEAP and CAPP programs to support lower-income CCCE customers  Future In-Person Meetings
o Discussed return to pre-Covid Brown Act meeting requirements o Staff plans to provide three in person meeting locations for CAC members and the public, as well as continuing to allow the public to participate over Zoom. Future zoom participation subject to assessment and development of protocols and procedures

REGIONAL TRANSPORTATION ELECTRIFICATION ACTION PLAN PRESENTATION AND PANEL DISCUSSION: INVESTOR-OWNED UTILITIES (DISCUSSION ITEM)
Staff provided presentations from Southern California Edison and PG&E  SCE described programs for subsidized front-of-the-meter infrastructure upgrades to serve EV charging
 PG&E is looking to large adoption of DERs to contribute to meeting future demand  Both IOUs are mostly focused on responding to request for service, instead of proactively projecting the locations for future increased demand  Increased loads can require long lead times in order for IOU to provide power o New Substation – 5-8 years
o New Transmission Interconnection – 3-5 years
o Added Substation Capacity – 3-4 years
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o New Circuit – 2-3 years
o Circuit Line Work – 2-3 years
Long lead times for infrastructure upgrades are a major obstacle to meeting CCCE’s transportation electrification goals. If IOU’s continue to expand grid capacity by responding to new project requests, instead of projecting needs and building proactively, the Central Coast will not be successful at meeting our electrification goals.

RECEIVE UPDATE ON REGIONAL TRANSPORTATION ELECTRIFICATION ACTION PLAN (DISCUSSION ITEM)
Staff reviewed the overall steps being taken to create Regional Transportation Electrification Plan (RTEAP)
 Goal is to determine how and where CCCE should direct future transportation electrification program investments.
 CAC Work Study Sessions
 Member Agency Working Group meetings
 Medium-Duty/Heavy-Duty Zero Emission Vehicle Blueprint – led by CCCE and consultant – Build Momentum
 Central Coast Zero Emission Vehicle Strategy – led by Santa Barbara County Association of Governments
 Evaluation of FY 21-22 and current CCCE transportation electrification programs A comprehensive CCCE Transportation Electrification Plan will guide the deployment of CCCE resources.

CCCE will also need to work proactively with IOUs to make sure that front of the meter infrastructure is being upgraded on a schedule to provide for planned future EV charging capacity.

RECEIVE UPDATE ON FY22/23 ENERGY PROGRAMS PORTFOLIO (DISCUSSION ITEM) Staff provided a detailed update on the implementation of the FY 22-23 Community and Member Agency Energy Programs
 FY 22-23 CCCE Community Energy Programs
o Electrify Your Home Program
 Incentives for hot water and HVAC heat pump technology  Midstream incentives to enrolled contractors
 Supported by a consultant - Energy Solutions
 $285,300 allocated to date with an annual budget of $1.6 Million o New Construction Electrification Program
 In addition to low-income housing, program now supports farmworker housing, ADUs, and flood victims
 Incentives are for all-electric homes (no natural gas or propane)  $165,000 allocated to date with an annual budget of $1.5 Million o Electrify Your Ride Program
 Now accepting 1040 tax forms
 New no-cost technical assistance for multi-family housing and publicly accessible commercial EV charger installations
 Improved communication with applicants
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 Plans to contract third-party implementer
 Plans for workforce development incentives for EVSE installation  $476,000 allocated to date with an annual budget of $4.6 Million o Ag Electrification Program
 Frontier Energy to provide new no-cost technical assistance to ag customers  $132,000 allocated to date with an annual budget of $2 Million o Upcoming Electric Bus Program launches Feb/March 2023  New iteration will include transit and ag employee buses as well as school buses  FY 22-23 CCCE Member Agency Programs
o Reach Code Program
 Support by consultant, TRC Engineers
 Comprehensive support for Reach Code development and adoption  Three agencies have used program
o Electrify Your Fleet Program
 Incentives for light-duty, medium-duty and heavy-duty EV’s o Charge Your Fleet Program
 Incentives for electrical vehicle charging infrastructure  Public-facing or dedicated to fleet charging only
o Member Agency Building and Transportation Electrification Working Groups  Working groups to encourage agency participation in incentive programs  Separate groups focused on Building Electrification and Transportation Electrification
o Upcoming programs to launch this spring
 Plan Your Fleet
 No-cost technical assistance (planning, design, and engineering) provided by third-party consultant (TBD)
 Facilitate member agency participation in fleet electrification  Broadband Access Initiative
 Funds for planning and interagency collaboration
 CAC Broadband Ad Hoc committee is assisting staff with program design 58 of 92
Staff Report Item 5
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: CEO's Report (Discussion Item)
DATE: March 8, 2023
February 15 Policy Board Workshop on Regulatory Challenges On February 15, staff conducted a workshop for the Policy Board to outline the significant challenges caused by the California Public Utilities Commission’s (the “Commission”) ever changing and ad hoc regulatory decisions are having on project development and the resource adequacy (RA) market, as well as on 3CE’s operations.

Continuously evolving Commission decisions, a failed central procurement effort, and a proposed new RA market design are each creating significant market uncertainty. Further, the Commission’s rulings have significantly increased the demand for RA while diminishing the available supply. As a result, RA prices have increased four hundred percent.

As with the arbitrary procurement mandates, the Commission gives little attention to the significant interconnection delays that are preventing the deliverability of new resources. Instead, the Commission has proposed additional jurisdictional oversight of CCA operations and ever-increasing penalties as the solution – neither of which build new resources.
3CE remains committed to achieving and surpassing the state’s renewable goals and is actively engaged in Commission and legislative discussions to propose market solutions that require IOUs allocate resources paid for through the PCIA, support incremental resource development rather than draconian penalties, and advance coordination in the interconnection process.

Integrated Resource Planning (IRP) Procurement Mandate Update On February 23, 2023, the Commission unanimously approved a Proposed Decision that again makes significant changes to 3CE’s Commission-mandated procurement requirements. The final Decision changes the rules about which resources can count towards compliance with the Commission’s previous 59 of 92
2023-2025 Mid-Term Reliability (MTR) mandate while also introducing a new resource procurement mandate for 2026-2027.

Considering the difficulty of meeting the original MTR requirements caused by both global supply chain conditions and the original structure of the MTR itself, the PD offered two potential changes to the existing MTR requirements:
1) Expanding the pool of resources eligible to count towards MTR compliance to include any resource that has come online since January 1, 2020, while; 2) Increasing each load serving entity’s (LSE’s) 2025 MTR procurement requirement by the same amount of capacity that the first change made newly eligible for that LSE, functionally equating to a partial extension of the deadlines for 2023 and 2024 procurement out to 2025.

The second part of the approved PD is yet another new procurement order for 4,000 MW of capacity to come online in 2026 and 2026, the two years after the 2023-2025 requirements of the MTR mandate are completed. The Proposed Decision does not include new analysis supporting this amount but cites increasing electricity forecasts and climate change impacts, increasing anticipated fossil fuel plant retirements, and ongoing supply chain delays that may prevent some planned resources from coming online before 2026.

Front of the Meter Energy Storage Update
Staff continues working with Member Agencies to site and develop the initial set of FMES projects, a first of its kind approach to distributed energy storage delivery. Supply chain constraints, siting control, and interconnection delays are impacting planned timelines and requiring 3CE investment in the upfront process to navigate dated utility interconnection structures that are not designed to accommodate battery operations. 3CE is committed to delivering the initial set of FMES projects and will evaluate the delivery method for future FMES projects.

Alexander Morris Appointed General Manager of California Community Power CC Power, to which 3CE is a founding member, announced Alexander Morris as its new General Manager responsible for overseeing current joint procurement efforts but also the operationalization of CC Powers’ strategic build-out.

Alex has worked in policy and procurement roles with the IOUS and most recently as the Executive Director of the California Energy Storage Alliance.

ATTACHMENT(S):
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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
Communications and Outreach
February 2023
I. Enrollment/Opt-Outs:

Total Opt-Out request for December 2022: 17
The reasons given by customers for opting out were as follows:

Rate of cost concerns 3
Decline to provide 3
Other 7
Dislikes being automatically enrolled 4

90.18%

97.12%

88.12%

93.83%

96.28%

98.12%

94.89%

96.30%

96.70%

92.43%

96.20%

90.98%

90.51%

89.38%

95.78%

92.61%

96.37%

96.81%

92.57%

95.43%

93.40%

88.55%

97.98%

96.70%

87.50%

86.91%

95.84%

95.85%

94.68%

98.00%

95.37%

97.37%

95.38%

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 Enrollment as of January 1, 2023 62 of 92
III. Media Outreach
February 2023
Facebook
Followers: 1,887
Post Reach: 2.4K
Post engagement: 582
(34.7% increase from last month)
New page followers: 8
Link Clicks: 39
Top Performing Content: Ag Electrification – McKenzie
Family Farms
Facebook En Espanol
Followers: 182
Post Reach: 17
Post engagement: 1
New page followers: 0
Link Clicks: 0
Top Performing Content: Willow Rock Energy Storage
Center
Instagram
Followers: 880
Reach: 5,665
Top Performing Content: Ag Electrification – Super Bee
Rescue customer testimonial
New Followers: 26
Twitter
Followers: 1,093
Top Performing Content: Willow Rock Energy Storage
Center
LinkedIn
Followers: 1,627
Top Performing Content: Ag Electrification – Super Bee Rescue customer testimonial Earned media:

Willow Rock Energy Storage Center
 Santa Barbara County to Get New Green Energy Technology - The Santa Barbara Independent  Long-duration storage projects are taking shape | BusinessGreen News  Hydrostor, California community choice aggregator enter nearly $1B long-duration energy storage PPA | Utility Dive
 California aggregator to buy capacity from compressed air storage project – pv magazine International (pv-magazine.com)  Energy Storage Is Going Underground - CleanTechnica
 Calif. Community Choice Aggregator Signs PPA Tied to Compressed Air Energy Storage Project | American Public Power Association
 Calif. Community Choice Aggregator Signs PPA Tied to Compressed Air Energy Storage Project | American Public Power Association
 First offtake deal signed for 500MW/4,000MWh advanced compressed air energy storage project in California - Energy Storage News (energy-storage.news)
 Renewable Energy Finance: Leeward Renewable closes $400mn debt + tax equity financing for 174 MW solar-plus-storage project in the US | Energy Central SLO County Board of Supervisors Meeting
 SLO County supervisors change priorities, policy directions | News | San Luis Obispo | New Times San Luis Obispo (newtimesslo.com)
 From redistricting to water policy, new SLO County Supervisor Jimmy Paulding shares his priorities | News | San Luis Obispo | New Times San Luis Obispo (newtimesslo.com) 63 of 92
FY 22-23 3CE Community Energy Programs
Provided in this report is an update on FY 22-23 Community Energy Programs implementation activities.

Electrify Your Home Program
On October 3, 2022, 3CE 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 February 23, 2023, there are 75 licensed contractors enrolled in the TECH program that serve part of 3CE’s service area.

The following table summarizes program performance as of February 23, 2023.

Approved & Paid Submitted Reserved Total Allocated
Single Family $159,600 $85,500 $77,100 $322,200
Multifamily $0 $45,000 $45,000
Total $159,600 $85,500 $122,100 $367,200
New Construction Electrification Program
On October 3, 2022, 3CE 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 February 23, 2023, staff have received and approved three (3) multi-unit projects totaling $150,000 in funding reservations for a total of 60 affordable housing units. 3CE has also received and approved three (7) applications for ADU projects, reserving a total of $35,000. 64 of 92
See Figure 1 below for total program funds reserved by county in FY 22/23. For a full list of all NCEP funds reserved since FY 19/20, please see Appendix A, attached to this document.

Figure 1 (above): Shows NCEP funds distributed by County in FY 22/23.

Electrify Your Ride Program
On November 1, 2022, 3CE 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. 65 of 92
 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, 3CE 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 500 applications received as of February 23, 2023.

Figure 2 (above): Shows Electrify Your Ride funds distributed by County in FY 22/23. 66 of 92
Figure 3 (above): Shows Electrify Your Ride Program funds distributed by Measure type in FY 22/23.

Figure 4 (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 67 of 92
Figure 5 (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.

Ag Electrification Program
On December 8, 2022, staff launched the fourth iteration of the Agricultural (Ag) Electrification Program.

The Ag program provides incentives to 3CE 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 in FY 22/23.
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Figure 6 (above): Shows total funds reserved or distributed by County for the FY 22/23 AG Electrification program Figure 7 (above): Shows Ag Electrification Program funds reserved or distributed by equipment type in FY 22/23.

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 on March 1, 2023. This Program will provide incentives to public 69 of 92
schools, school districts, transportation agencies, and businesses that offer farmworker transport services to help offset the cost of the purchase of an all-electric bus. 70 of 92
Appendix A – NCEP Approved Housing Developments, by City Installation City Development Name
Estimated Project
Completion Date
Total Reserved
Funds
Total # of
Housing
Units
(Final) Status
Buellton Village Senior Apartments August 2024 $122,500 49 Funds Reserved Goleta Heritage Ridge December 2022 $102,500 41 Funds Reserved Goleta Hollister Lofts December 2023 $90,000 36 Funds Reserved Guadalupe Escalante Meadows June 2023 $200,000 80 Funds Reserved Hollister Riverview Estates II Completed- 2022 $60,000 24 Project Complete Hollister Santana Ranch Apartments March 2023 $139,250 56 Funds Reserved Hollister Phase 1 of Santana Ranch Apartments March 2023 $37,500 16 Funds Reserved Hollister The Apartments at Santana Ranch, Phase 2 December 2023 $137,500 55 Funds Reserved Lompoc (Unincorporated Santa
Barbara County) Brisa Encina TBD $122,500 49 Funds Reserved New Cuyama Perkins Place TBD $82,500 33 Funds Reserved
Pismo Beach Shell Beach Senior Apartments May 2024 $62,500 25 Funds Reserved Pismo Beach Pismo Terrace July 2023 $125,000 50 Funds Reserved Salinas 467, 479 E. Market Street January 2025 $156,750 84 Funds Reserved San Luis Obispo
Presidio WH SLR 80 Towns, LLC (Williams Homes)
Fig at the Orchard- Tract 3150 February 2022 $141,500 80 Funds Reserved San Luis Obispo
Presidio WH SLR 120 Lofts Efficiency Units at the
Orchard -Tract 3150 TBD $214,500 120 Funds Reserved
San Luis Obispo Tiburon Place TBD $170,000 68 Funds Reserved San Luis Obispo Broad Street TBD $100,000 40 Funds Reserved San Luis Obispo Vinifera Completed- 2022 $76,000 40 Project Complete San Luis Obispo Iron & Oak Completed- 2022 $29,750 17 Project Complete San Luis Obispo Harvest Lofts March 2023 $213,500 122 Funds Reserved San Luis Obispo Harvest Vistas June 2023 $26,250 15 Funds Reserved San Luis Obispo Avila Ranch TBD $35,000 14 Funds Reserved Santa Cruz 180 Permanent Supportive Housing Project July 2023 $240,000 121 Funds Reserved 71 of 92
Santa Cruz Pacific Station North April 2025 $237,500 95 Funds Reserved Santa Cruz Jessie Street Apartments TBD $123,500 50 Funds Reserved Santa Cruz 1500 Capitola Road Family Housing June 2023 $142,500 57 Funds Reserved Santa Cruz Downtown Library Apartments March 2025 $240,000 105 Funds Reserved Santa Cruz Calypso September 2024 $87,500 35 Funds Reserved Santa Cruz, CA Natural Bridges Apartments January 2025 $50,000 20 Funds Reserved Santa Ynez Harry's House May 2023 $150,000 60 Funds Reserved Seaside Lower Stilwell Privatized Military Housing March 2023 $240,000 96 Funds Reserved Soledad San Vicente Rentals Completed - 2021 $20,000 8 Project Complete Unincorporated Monterey
County East Garrison Apartments TBD $165,000 66 Funds Reserved Watsonville Miles Lane Family Housing December 2023 $180,000 72 Funds Reserved Watsonville Pippin Phase II Apartments July 2024 $200,000 80 Funds Reserved Watsonville 1482 Freedom Blvd November 2023 $131,750 53 Funds Reserved 72 of 92
FY 22-23 Member Agency Services
Provided in this report is an update on FY 22-23 Member Agency Services implementation activities.

Reach Code Program
On October 3, 2022, 3CE 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 launch, three Member Agencies have engaged in the program: City of Watsonville, City of San Luis Obispo, and the County of Monterey. 3CE 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 February 23, 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, 3CE staff launched the Electrify Your Fleet (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
On December 15, 2022, 3CE staff launched the Charge Your Fleet (CYF) program. CYF is a 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 public facing or “behind the fence” and include Level 2 and/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 3CE has established and is facilitating working groups focused on building and transportation 73 of 92
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 3CE.

The Building Electrification Working Group (BEWG) 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 3CE grant funded building electrification projects. The BEWG will meet quarterly in 2023.

The Transportation Electrification Working Group (TEWG) met on December 1, 2022. 3CE Staff presented on the suite of 3CE transportation electrification programs planned for FY 22-23. The TEWG will meet quarterly in 2023. On February 23rd, the TEWG met and received project updates from Planning Implementation and Innovation Grantees, City of San Luis Obispo and City of Santa Cruz.

BEWG TEWG
None February 23
April 27 May 18
July 27 August 24
October 26 November 16
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
3CE’s Broad Band Initiative will collaborate with Member Agencies and regional economic agencies to support greater broadband access and deployment. 3CE 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 3CE’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 3CE’s service area.

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 74 of 92
meeting on December 21, 2022. Staff and the AHC met January 12, 2023 and reviewed a staff regional broadband summary.

On Monday February 1st, Staff met with the two regional broadband coordination groups covering the 3CE service territory: Broadband Consortium of the Pacific Coast, and the Central Coast Broadband Consortium. These discussions, combined with Staff research, create the basis for next steps. The Ad Hoc Committee will meet with Staff on February 9th to review a draft Program Design and Implementation Guide created by Staff.
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TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
DATE: March 8, 2023
RE: Regulatory & Legislative Impact Update
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. Every two years, CCAs, investor-owned utilities (IOUs) and Direct Access providers (collectively load serving entities or LSEs), must submit Integrated Resource Plans documenting the resources they plan to procure through 2035 and the estimated attendant GHG emissions. The CPUC aggregates the plans to determine whether the electricity sector is on track to hit its portion of California’s 2030 and 2045 GHG reduction goals while maintaining a reliable grid. 3CE and other LSEs submitted the most recent IRPs on November 1, 2022.

In addition to preparing the required IRP this year, 3CE is working with other stakeholders to help the CPUC reform and improve the IRP procurement program. 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 (detailed further in the following section). These mandates have been issued on an ad hoc basis as the Commission has seen fit. The uncertainty about when they will come and what they will require has made it difficult for LSEs to incorporate them into long-term procurement planning, and likely contributed to increased resource prices as all LSEs are forced out into the market for the same resources on compressed, public timelines.

The structure of the mandates thus far has also inadvertently punished LSEs such as 3CE who have invested proactively in new resources by barring resource contracts signed before a certain date from being eligible to count towards these mandates. 3CE staff met with CPUC officials several times in the spring and summer of 2022 to discuss how these mandates have affected 3CE 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. 76 of 92
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 (the Mid-Term Reliability or MTR mandate). 3CE’s assigned slice of those mandates was 57.4 MW and 291 MW respectively.

Status
On January 13, 2023, the CPUC issued a Proposed Decision (PD) making changes to the Mid-Term Reliability (MTR) mandate and introducing a new mandate for resources to come online in 2026-2027.

The PD acknowledges the difficulty of meeting the current MTR requirements caused by both global supply chain conditions and the original structure of the MTR itself. Among other provisions, the PD makes two changes to the MTR requirements:
1) Expanding the pool of resources eligible to count towards MTR compliance to include any resource that has come online since January 1, 2020, while
2) Increasing each LSE’s 2025 MTR procurement requirement commensurate with the amount of capacity that the first change makes newly eligible, functionally equating to a partial extension of the deadlines for 2023 and 2024 procurement out to 2025.

These changes were the first structural acknowledgment from the Commission of 1) the delays the market and supply chain disruptions of the past few years have caused for new resource development, and 2) the perverse incentive against proactive new resource development created by the original MTR structure. 3CE staff held multiple meetings with CPUC staff and state legislators last year to discuss both issues and supported the resource eligibility change in this Proposed Decision when the idea was first surfaced in a Ruling in September 2022.

The second part of the Proposed Decision was a new procurement order for 4,000 MW of capacity to come online in 2026 and 2026, the two years after the 2023-2025 requirements of the MTR mandate are completed. The PD did not include new analysis supporting this amount but cited increasing electricity forecasts and climate change impacts, increasing anticipated fossil fuel plant retirements, and supply chain delays that may prevent some planned resources from coming online before 2026.

On February 2, 2023 3CE submitted joint comments with Silicon Valley Clean Energy supporting the Proposed Decision’s changes to the MTR baseline rules while pushing back on the lack of concrete analysis behind the new procurement mandate. The CPUC Commissioners unanimously approved the PD at their February 23rd voting meeting, so staff will now focus on formally moving 3CE’s newly eligible resources into 3CE’s compliance portfolio via an Advice Letter to the CPUC.

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

In addition to the rules for POLR, Phase 1 of the proceeding will examine a framework for recovery of POLR costs and consider whether the Financial Security Requirement (FSR) and re-entry fees need to be modified and/or changes made to the CCA registration and de-registration processes. The FSR is a fee that each CCA must pay upfront to the IOU(s) in its service area to cover the costs of transferring its customers back to the IOU in the event of the CCA’s failure. The FSR calculation is refreshed every six months using a methodology adopted in 2018 and has consistently come out to $147,000 for 3CE and all other CCAs since the currently methodology was adopted. Re-examination of the FSR methodology could result in a significant increase in the amount of FSR that CCAs are required to post.

Impacts
The scale of FSR increases being considered in Phase 1 is significant. CCAs got a preview of this in 2022 when Southern California Edison (SCE) increased 3CE’s requested FSR from $147,000 to $2.9 million and made similar changes to other CCAs’ FSR amounts. The change was based on the sharp increase in energy market prices in spring 2022 due to global geopolitical events and other factors, but it illuminated flaws in the current FSR methodology around how energy market data were incorporated.

CalCCA successfully protested the increases and the CPUC reset the FSRs to $147,000 in light of the ongoing reexamination of the FSR methodology in this proceeding. But such increases could return depending on the outcome of Phase 1. As Phase 1 has proceeded, CPUC staff interest in increased monitoring of CCA finances and risk management in the name of avoiding sudden CCA failures has also become an issue of focus.

Status
After little activity in Q4 of 2022, on January 6, 2023, Commission staff released their own set of proposals to be considered by the CPUC Commissioners alongside those proposed by stakeholders.

These focus mainly on defining the process for a CCA exiting service and transitioning its customers back to an investor-owned utility, reflecting continued staff concern about the first CCA exits in 2021 (Western Community Energy and BPROUD).

However, the proposals also seek to expand CPUC visibility into CCA operations through increased financial monitoring of CCAs that hit certain trigger points such as a credit score downgrade to below investment grade. Staff do not propose significant changes to the FSR methodology but do suggest offering an FSR reduction to CCAs that are willing to demonstrate compliance with certain financial hedging requirements and are free of Resource Adequacy and Integrated Resource Planning 78 of 92
procurement deficiencies. 3CE staff plan to push back on this approach in coming comments, due to both concerns about CPUC entrance into CCA hedging oversight and a preference for a credit score-based FSR reduction option as a more comprehensive measure of financial health. Discussion of both the CPUC staff proposals and those made by stakeholders last summer will continue through 2023 with comments on the staff proposals due March 21st and a Phase 1 Decision scheduled for Q4 2023.

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. It currently requires all LSEs to demonstrate on an annual and monthly basis that they have purchased enough generating capacity to cover their share of the peak demand. In addition to ongoing administration of the RA program, this proceeding is carrying out structural reform to make the RA program more effective at maintaining reliability of service as the grid moves away from fossil fuels to a renewables and storage-based fleet.

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

Concurrently, 3CE and other load-serving entities have continued to work through the significant uncertainty introduced into RA procurement by the introduction of a Central Procurement Entity (CPE) for Local RA. In 2020 the CPUC created the CPE function and awarded it to PG&E and Southern California Edison (SCE) in their respective service areas in an attempt to address increased Local RA market prices. The CPEs (PG&E and SCE) were charged with procuring Local RA on behalf of all load-serving entities in their service areas and recovering the cost of the procurement from ratepayers through the existing Cost Allocation Mechanism (CAM) charge.

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

This outcome highlighted ambiguities around how the CPE function interacts with the System RA requirements that all LSEs are still individually responsible for procuring, creating uncertainty around the amount of System RA 3CE and other CCAs were required to procure before the Year-Ahead RA compliance deadline on October 31, 2022.
3CE staff have pursued all avenues in order to clarify this uncertainty in a timely manner. Staff held multiple meetings with CPUC staff in July and August and submitted a letter to CPUC President Alice Reynolds on August 11, 2022. Staff then submitted a formal Motion for Clarification jointly with 79 of 92
Peninsula Clean Energy on September 16, 2022 that was subsequently supported by two other CCAs and a coalition of Direct Access stakeholders. On September 30, CalCCA submitted a Petition of Modification to modify the Resource Adequacy (RA) procurement timeline and waiver process in light of the CPE outcome, but the CPUC rejected it.

Impacts
RA procurement has taken up an increasing amount of budget and 3CE 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
On January 20, 2023 stakeholders had the opportunity to proposed incremental changes to the RA program as part of an annual “catch-all” track of RA program administration. 3CE proposed clarifications to the CPE process while Commission staff proposed eight changes of their own. The most notable was a proposal to prohibit CCA expansion in a given year if the CCA seeking to expand has had an RA deficiency of over 2.5% in any month of the previous two calendar years. This proposal would constitute a significant expansion of CPUC oversight over CCA growth and does not appear to be consistent with the CPUC’s statutorily assigned role in CCA expansion. 3CE submitted comments opposing the expansion restriction as well as encouraging the CPUC to focus on the more fundamental market structure issues affecting the RA program and create a waiver option for system RA, as did CalCCA. 3CE staff will continue to advocate at the CPUC on these issues in advance of the scheduled June 2023 Decision.

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. CA’s Public Resources Code authorizes the CEC to adopt rules and regulations to reduce uneconomic and wasteful consumption of energy. Originally established in 1979, the Load Management Standards (LMS) have resulted in industrial time-of-use rates, commercial audits, and residential load control programs.

On October 12, 2022, the California Energy Commission adopted the final updated Load Management Standard Regulations. They now 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.
3CE has supported CalCCA in pushing back on the proposed regulations in meetings with CEC staff and three rounds of comments prior to adoption. CalCCA’s opposition has been on both jurisdictional and practical grounds, as implementation of real-time rates would not be feasible for CCAs under the 80 of 92
existing data access systems maintained by the IOUs. Currently, 3CE is undertaking internal planning for how to achieve compliance while continuing to explore potential avenues for challenging the standards on jurisdictional grounds.

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

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 current 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 depend rate data can be stored queried by the public for transparency.

Within the working group meetings, stakeholders continue to grapple with the logistics of implementing the LMS standards and making uploads to the MIDAS platform. The system requires a manual upload of CCA rates combined with IOU Transmission and Distribution rates, which must be updated every time there is a rate change. The current format would have CCAs responsible for updating rates in MIDAS based on real time IOU rate data that is not currently shared with CCAs. 3CE staff are participating to advance data sharing capabilities with the IOUs and advocate that CCAs be responsible only for their generation rate components. Although the requirements for rate uploads have yet to be determined, the CEC has required that the first uploads of all time dependent rates to MIDAS be completed by July 1, 2023.

Bioenergy Market Adjustment Tariff (BioMAT) (Rulemaking.22-10-010) 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. 3CE 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. 81 of 92
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
This proceeding is still in its early stages. CalCCA (on behalf of all CCAs) filed reply comments to the BioMAT Order Instituting Rulemaking on December 13th. The comments 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. Stakeholders now await a Scoping Ruling from the Commission outlining the scope and schedule for the proceeding.

Demand Flexibility (Rulemaking.22-07-005)
Issue
The Commission issued an Order Instituting Rulemaking on July 22, 2022 to advance customer demand flexibility through electric rates to support reliability, decarbonization, and affordability.

Impacts
This proceeding will explore solutions to data access between CCAs and IOUs and pilots for future rate changes including fixed charges. 3CE will participate in this proceeding alongside CalCCA to ensure CCA rate autonomy is preserved, monitor changes to IOU transmission and distribution rate components, work to limit fixed charges to the transmission and distribution portion of billing, and advocate for equitable outcomes for both bundled and unbundled customers through rate structures.

While this proceeding does not directly govern CCA rate setting right now, it is a relevant forum for addressing issues around Load Management Standard (LMS) compliance and could hold implications for CCA ratemaking in the future.

Status
The Scoping Ruling split this proceeding into two Tracks. Track A focuses on the income-graduated fixed charges created in 2022 by AB 205 and Track B focuses on rate design principles for promoting demand flexibility. In Track A, the latest ruling provided guidance for proposals on an income-graduated fixed charge for residential rates, which are due March 17, 2023. 3CE is working with CalCCA to ensure the design of fixed charges are equitable across customer classes and between bundled and unbundled customers.

In Track B, 3CE staff are participating in two working groups hosted by the CPUC. Working Group 1 is providing guidance for Demand Flexibility Rate Design and LMS compliance and Working Group 2 is 82 of 92
focusing on the systems & processes needed to ensure access to dynamic prices by bundled and unbundled customers, devices, DER, and third party service providers. The working groups are scheduled to have finalized proposals for CPUC consideration by the end of March 2023.

Legislative
The 2023 legislative session is off to a fast start, with the highest number of bills introduced in over a decade as of the February 17th introduction deadline. Legislative interest in energy issues remains high, and although many spot bills have yet to be fleshed out there is already clear interest in grid reliability, energy affordability, regionalization of energy markets, and solutions to interconnection delays for both new generation resources and new load. 3CE staff are analyzing the large crop of bills introduced close to the deadline to identify priority bills and begin discussing them with other CCAs and stakeholders.

Staff continue to meet with both incumbent and newly elected legislators, sharing 3CE’s newly published annual report and discussing priorities for the upcoming session.

One recent illustration of legislator sentiment on energy issues was an informational hearing held February 22nd by the Assembly Committee on Utilities and Energy. The hearing was devoted to energy affordability and covered both natural gas and electricity. The hearing agenda and recording can be found on the committee’s website, and the discussion demonstrated the strong degree of legislator interest in both affordability and the solutions CCAs are bringing to the table. 83 of 92
CCCE Contracts < $100k
Vendor Total Engagement Amount From To Service Scope Remarks 1 Double Diamond Consulting LLC $90,000 1/17/2023 9/30/2023 Power resource planning and scheduling support services 2 FM3 Research $32,750 1/4/2023 9/30/2023 Customer Survey Project 84 of 92
Staff Report Item 6
TO:

FROM:

SUBJECT:

DATE:
3CE Operations Board of Directors
Robert M. Shaw, Chief Executive Officer
Receive 2021-2022 3CE Annual Report
March 8, 2023
RECOMMENDATION:

This recommends the Operations Board receive the 3CE FY 21-22 Annual Report.

BACKGROUND:
3CE is proud to release its 2021-2022 Annual Report, which showcases significant developments at the agency and highlights key initiatives such as our innovative energy programs, 3CE’s pathway to 100% renewable energy by 2030, and ongoing community outreach. The report also documents the agency’s work on several new California renewable energy projects including geothermal, solar, wind, and energy storage. Altogether, the report demonstrates consistent progress toward agency goals as well as a positive financial outlook.
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2022
Annual
Report
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Header Executive Staff
3 Letter from CEO
2 This past year, as businesses re-opened and
people returned to a semblance of normal life,
Central Coast Community Energy (CCCE) helped
ease the transition: providing rate relief for those
in need, while continuing to source clean energy
to help local businesses bounce back.

We did so despite challenges such as increasingly
volatile energy markets, soaring prices and supply
chain issues. CCCE made significant progress
toward our goal of achieving 100% clean and
renewable energy by 2030, thanks to focusing
on our goals and staying the course. We have
advanced our projects and program offerings
while protecting our customers from rate spikes
and providing affordable, clean energy.

Renewables
CCCE’s goal is to achieve 60% renewable energy
by 2025, and 100% by 2030. We are making
steady progress in delivering on that promise.

While others scrambled to review their strategies
to respond to new regulations and higher energy
prices, we saw previous investments come to life.

Five new renewable energy projects came online
this year, growing our ability to meet customer
demand. These five projects together can supply
22% of our customers’ annual energy needs.

Power Supply
In our effort to keep our promise of 100% clean
and renewable energy at affordable prices, we
know the critical piece is storing that energy for
later use. We have and will continue to invest in
battery storage to help with reliability and meet
energy needs when the sun goes down but
demand remains high.

Pricing
Market prices climbed everywhere, prompting
others to seek to reopen contracts to push
for higher prices that would ultimately fall to
customers.

At CCCE, however, we believe in honoring the
commitments we’ve made. We signed many
energy supply contracts when prices were more
favorable, which has protected our customers
from spikes in prices today.

Staying the course has helped us continue
to deliver clean power at more stable,
affordable prices. Our rates help customers
in all communities, including those who are
underserved, know what to expect on their bills
and keep the lights on.

Programs
In addition to growing capacity and transparent
pricing, we expanded our programs this past year.

We exceeded previous years in terms of numbers
of applicants and funding spent on the programs.

Our programs addresses local climate equity
by offering double the incentives for income-qualified customers and providing accessible opportunities for eco-friendly alternatives to gas
powered vehicles and equipment.

The key is our approach. We understand
our customers, we have deep knowledge of
how to design energy programs that benefit
our communities, and we recognize strong
investments that benefit our goals. It helps
that we insist on clarity, process improvement,
reliability and the ability to grow to meet
increasing demand.

Looking ahead
Our strategy of consistent forward progress
has served us well this past year. We intend to
keep our promises as we work toward a future
of sustainable, environmentally and socially
responsible energy to power our communities.

We look forward to continuing to serve you.

Robert Shaw
Chief Operating Officer
Jaya Bajpai
Chief Financial Officer
Dennis Dyc-O’Neal
Director of Power Supply
Resources
Catherine Stedman
Director of Communications
& Outreach
Jon Griesser
Director of Energy Programs
Hilary Staver
Director of Regulatory &
Legislative Affairs
Alicia Hicks
Director of Human
Resources & Administrative
Services
Tom Habashi
Tom Habashi
Chief Executive Officer
Tom Habashi
Chief Executive Officer
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Programs Progress & Outcomes
5 Delivering on our goals of providing clean, renewable energy to our customers at affordable and competitive rates, we have instituted programs each year to help address each community’s unique priorities by focusing on three areas that contribute most to regional emissions: transportation, building and agriculture. These programs enable CCCE to reinvest in our local community and provide greener solutions for all customer types.

This past year, we spent more than $10 million on programs and helped them grow, with more customers becoming aware and taking advantage of them over time.

Here’s a look at how our programs have fared this past year and the positive impacts on the communities of the Central Coast.

AG ELECTRIFICATION
The Agricultural Electrification program helps farmers and ranchers electrify their operations to provide cleaner air for farmworkers and our communities, supported by rebates to upgrade to electric farm equipment. By switching to electric equipment, farmers not only help improve air quality and decrease harmful diesel exhaust, they also respond to tightening environmental standards and consumer demand for sustainable production practices. This program helps agricultural operations use more efficient technology that requires less maintenance and provides an opportunity for cost savings. Rebates are available for farmers who switch to electric irrigation pumps, boiler/ chilling systems, forklifts, tractors, transportation and more.

CCCE increased its focus on small businesses with this program, resulting in 22 of 34 total projects helping small agricultural operations. For the coming year, we plan to adjust incentive levels to increase the impacts of the program and support for small farmers, as well as include a training component to help with the maintenance of electric equipment. A new focus for the upcoming fiscal year includes support for high-powered EV charging stations that can completely recharge a typical electric battery in about 30 minutes, reducing the wait time needed to charge electric vehicles and other equipment.

Total community reinvestment via Ag Electrification Program rebates: $594,270

ELECTRIFY YOUR HOME
Electrifying your appliances is an important move for both greenhouse gas emissions and the health of the home. The Electrify Your Home offers customers incentives to improve the air our families breathe indoors, which contributes to climate action for the planet.

Electrify Your Home helps landlords and homeowners make the switch to electric water heaters and HVAC systems.

Electrifying a home’s heating and cooling systems has been shown to benefit health and safety while also reducing
greenhouse gas emissions from gas and propane.

This past year, we initiated several projects that helped residents purchase and install the appropriate equipment, as well as make the electric panel upgrades or replacements necessary to accommodate the switch to electric appliances.

For this coming year, we plan to grow the program with
a continued focus on training and education for local
contractors who are available to assist homeowners with installations.

Total community reinvestment via Electrify Your
Home Program rebates: $68,000

SCHOOL BUS ELECTRIFICATION
The iconic yellow school bus hasn’t seen many outward
changes over the years, but some have changed significantly underneath. Electrified school buses benefit students and communities with cleaner air and cost savings.

Switching out a diesel-burning school bus for an electric one can avoid more than 15 metric tons of greenhouse gas emissions each year, while saving school districts money on fuel and maintenance. They’re even more comfortable and drive better than diesel buses.

CCCE’s program helps districts purchase and lease electric buses. In 2022, we also dedicated more than $1 million to help seven Title 1 schools in our service territory reserve electric school buses that not only reduce emissions but that protect children from exposure to harmful diesel exhaust.

Total community reinvestment via Electrify Your
Bus Program rebates: $1,456,259

NEW CONSTRUCTION

ELECTRIFICATION
What better way to encourage the use of electric appliances than to include them in homes from the start?
CCCE’s electrification program for new construction offers housing developers and homeowners incentives to build
all-electric housing. The program focuses on projects that promote affordability and address housing needs, such as affordable housing developments, farmworker housing and accessory dwelling units.

Encouraging new construction to use electricity saves
time and money down the road by eliminating the need
for conversion later. This year, our program supported six projects with more than $600,000 in local investments. Those six projects included a total of 448 affordable housing units.

We plan to continue our concentration on affordable housing and to add new customer segments, such as infill projects, Accessory Dwelling Units, and rebuilding structures damaged or lost in wildfires.

Total community reinvestment via New
Construction Electrification Program rebates:
$602,500

MEMBER AGENCY SERVICES
Thirty-four communities joined Central Coast Community
Energy (CCCE) with the shared goal of reducing greenhouse gas emissions, supporting the growth of clean and renewable energy, and accessing new economic and environmental
benefits.

In 2022, the Electrify Your Fleet and Charge Your Fleet programs were launched. These programs were designed for CCCE’s 34 member agencies to reduce their greenhouse gas emissions. The programs help incentivize the purchase/lease and installation of electric vehicle service equipment, as well as light duty, medium duty and heavy-duty electric vehicles.

Each program provides rebates of up to $150,000 per
member agency. CCCE’s member agency programs support
our goals to reduce greenhouse gas emissions, improve air quality, and accelerate EV adoption for local government fleets.

LOOKING AHEAD
We will continue to build momentum with these programs, while working to grow customer involvement. CCCE is
particularly interested in increasing customer engagement within underserved communities, while also increasing our impact in the ongoing effort to reduce greenhouse gas
emissions.

ELECTRIFY YOUR RIDE
Our Electrify Your Ride program has provided 2,231 residents with $2.8 million in rebates for electric vehicles, chargers and assistance to support electric vehicle charger installation.

Because transportation produces the largest share of greenhouse gas emissions in the U.S., electrifying vehicles will have a significant payoff in the long run. This program will help individual car owners have a greater impact on our air quality, while at the same time, saving money on fuel and maintenance. We also offer incentives to help businesses and local government agencies electrify their fleets.

As we continue this program, we expect to increase our focus on developing the necessary charging infrastructure and working with a third party to support the program.

Total community reinvestment via Electrify Your Ride Program rebates: $2,832,852 4 88 of 92
New Renewable Energy & Storage Projects
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Power Supply Progress
For CCCE to meet our goal of providing 100% clean and renewable energy by 2030, while keeping rates affordable we need to invest along the entire supply chain, from power generation to customer use.

We are doing just that by participating in longer-term energy generation and storage projects. Our comprehensive, well-planned strategy is already showing benefits to our customers.

ACQUIRING ENERGY
In 2021, CCCE reevaluated our strategy for procuring clean, renewable energy. The result was a decision to focus on acquiring energy from new projects, which would have a longer life and make a greater impact than relying on existing renewable energy sources and carbon-free attributes. Since that decision, five energy generation projects have come online. Our plan for 2023 is to increase sources of clean energy in our portfolio.

The projects that came online include two geothermal, two solar-plus-storage projects and one wind project:

ENERGY STORAGE
The key challenge in converting to 100% clean and renewable energy is overcoming the times when there is no wind or sun available. Currently, California meets those needs with fossil fuel-generated electricity.

To use renewable energy during those times, we need technologies such as batteries to store excess solar and wind energy. Storing surplus energy also allows us to have a supply when it’s needed – for instance, during outages or extreme weather – helping build more reliability into the electric grid, and keep costs down.

Energy storage will also allow us to meet consumer demand more reliably during peak usage times in the mornings and evenings.

MEETING TIMELINES
Reaching our goal of 60% renewables by 2025 and 100% by 2030 is a formidable task that is not without its obstacles. Supply chain difficulties, manufacturing disruptions, market considerations and other possible delays can affect the progress of projects from which we have contracted to receive electricity.

We are working closely with our partners to ensure our projects can be built successfully while maintaining our contract terms.

CCCE’s dedication to delivering on our promises continues to drive our performance, strategies, and success.

CCCE is procuring energy for the long haul, moving from short-term renewable resource purchases to longer-term
ones. To do that, we thoroughly model the costs and
availability of projects to help us reach our intended mix of mostly wind and solar with some geothermal included.

We have executed contracts for 19 projects, poised to
supply 60% of our customer’s electricity needs with clean and renewable energy by 2025. We will continue to
pursue additional new sources of carbon-free generation to meet our goal of attaining 100% clean and renewable
power by 2030.

Source Project Location About
Coso Inyo County, CA Expected to meet about 11% of CCCE’s energy needs.

Slate Kings County, CA Expected to meet about 4% of CCCE’s overall consumption.

Casa Diablo IV Mono County, CA
The first new geothermal project to be built in
California in 30 years and will serve about 1% of
CCCE’s annual load.

Mountain View Riverside, CA Began deliveries five months ahead of schedule and will cover 3% of CCCE’s annual load.

Rabbitbrush Kern County, CA Will meet 3% of our annual load. 90 of 92
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Key Accounts & Outreach FY 22/23 Financial Overview
Throughout CCCE’s service area, we have large commercial customers, each with their own specific needs for their unique business. Our commercial customers account for the largest share of our electricity usage and therefore play an important role in achieving our climate goals.

To help provide local businesses with the energy they need, while also achieving greenhouse gas reductions, we partner with each customer. Business partnerships help us learn about each company’s unique requirements and plan the best course of action to deliver clean, renewable and reliable electricity, while keeping rates affordable and competitive.

We have programs that are specifically designed for businesses to help make reducing emissions an attractive proposition. CCCE’s programs, such as those aimed at helping commercial fleets transition from fossil fuels to electricity, can make a large contribution to greenhouse gas reductions.

HANDS-ON CUSTOMER SERVICE
Learning about electrification can require a time commitment from business owners – time that otherwise could be spent on customer relationships and their bottom line. However, we recognize the value of having large companies on board if we hope to achieve our clean and renewable energy goals and make a significant impact on climate-altering emissions. So we partner closely with these customers and work hard to provide efficient solutions that minimize their commitment of time and maximize opportunities for cost savings.

We strive to reach business owners in the way that is most convenient for them, try to learn about each company’s unique needs, and offer the training and education that can help ease the transition away from fossil fuels. We use workshops, surveys, direct communication and every tool available to reach this integral segment of our customer base.

Through an engaged commercial community, we will have the greatest positive impact on greenhouse gas emissions all along the Central Coast.

Key Performance
Indicators
Agriculture
Electrification
Electric
School Bus
Electrify
Your Ride
Electrify
Your Home
New Construction
Electrification
Number of Projects 34 8 2231 12 6
Incentives Committed/Paid $594K $1.4M $2.8M $68K $602K
CO2 Avoided 608 mT 148 mT 2493 mT 8.25 mT 170 mT
FY 22/23 Energy Programs
Portfolio
Proposed
FY 22/23
Budget

COMMUNITY PROGRAMS
Agriculture Electrification Program $2,150,000
Electrify Your Ride Program $4,530,000
Electric Bus Program $2,000,000
Electrify Your Home Program $1,540,000
New Construction Electrification Program $1,500,000

MEMBER AGENCY PROGRAMS
Reach Code Program $100,000
Electrify Your Fleet Program $2,000,000
Charge Your Fleet Program $1,250,000
Fleet Electrification Planning and
Technical Assistance Program $450,000
Broadband Access Intiatives $150,000

PORTFOLIO-WIDE EXPENSES
Staffing and Professional Development $1,370,000
Program Marketing $365,000
General Program Support $327,000
Future Programs Research, Planning, and
Development $150,000
TOTAL $17,727,012
CCCE FY 22/23 Budget

LINE ITEM BUDGET NOTES
Aggregate Cost of Energy -
RA, Energy, PPA $377,918,806.77 Key Staffing
and Support
Expenditures
>$0.5 MM Data Manager $2,793,200
Service Fees - IOU $2,100,000
Advertising $500,000
Contingency $1,100,000
Subscriptions $611,062.14
Legal $1,844,660.20
IT Consulting $593,469
Other Consultants $563,000
Technical Consultants $1,541,093
Employee Welfare $1,086,405.60
Retirement Plan Contributions $707,508.36
Salaries and Wages $7,042,640.36
Energy Programs $15,992,012.04 Direct Spend
On Programs
Bad Dept Allowance $7,500,000
TOTAL $425,650,061.49
Positive outcomes from the work of CCCE's Finance
team continued during the 2021-2022 fiscal year.

CCCE maintained its 'A' issuer credit rating from
Standard & Poor's, helping to ensure agency financing
and purchasing agreements include favorable terms
that yield positive customer impacts.

New financial milestones were met with the implementation of Cost of Service rates in 2022, resulting in customer savings of up to 20% - considerably higher than many other CCAs. In collaboration with the Key Accounts & Outreach team, Finance also successfully migrated billing for 400,000 customers to a new data and billing provider. Despite the inclement condition of the global energy market, the financial outlook for CCCE and its customers is stronger than ever.
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“It’s exciting to see the CCA
concept become a reality in our
area and deliver on the benefits
originally imagined.”
— Alex Yasbek, City of Watsonville
Environmental Projects Manager
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