Operations Board of Directors
April 10, 2024
10:30 A.M.
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 Paso Robles
City Hall
1000 Spring Street, Second Floor
Paso Robles, CA 93446
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, First Floor
Santa Barbara, CA 93101
Public may participate through ZOOM. For ZOOM participation please join by computer audio at:
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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.org/meetings-agendas/ DISCLOSURE OF CAMPAIGN CONTRIBUTIONS: Pursuant to Government Code section 84308, members of the Board are disqualified and not able to participate in any agenda item involving contracts (other than competitively bid, labor, or personal employment contracts), franchises, discretionary land use permits and other entitlements if the Board member received more than $250 in campaign contributions from the applicant or contractor, an agent of the applicant or contractor, or any financially interested participant who actively supports or opposes the decision on the agenda item since January 1, 2023.
Members of the Board who have received, and applicants, contractors or their agents who have made, campaign contributions totaling more than $250 to a Board member during the proceeding or for 12 months after a final decision is rendered in that proceeding, are required to disclose that fact for the official record of the subject proceeding. Disclosures must include the amount of the campaign contribution and identify the recipient Board member and may be made either in writing to the Clerk of the Board prior to the subject hearing or by verbal disclosure at the time of the hearing.
AGENDA
Welcome & Roll Call
Pledge of Allegiance
Corrections or Additions
The Clerk will announce agenda corrections or proposed additions of emergency, urgency, or continued items, which will be acted on by the Board as provided in Section 54954.2 of the California Government Code.
Public Comment on Items on the Consent Calendar and Items Not listed on the Agenda The public may address the Board on the Consent Calendar and any matter within the jurisdiction of the Board but not on the agenda.
Pages
CONSENT CALENDAR
1. Approve minutes from the March 13, 2024 meeting of the Operations Board of Directors 1
2. Update on FY 2023-24 Energy Programs 5
3. Receive Regulatory Update 14
4. Receive a financial report for the period October 1, 2023, through February 29, 2024 23
REGULAR AGENDA
5. CEO Report 37
a. Power Supply Update
b. Electricity Market Update
c. Provider of Last Resort (POLR) Update
6. Consider nominations and appoint: (1) Chair of the 3CE Operations Board of Directors to serve through December 2024; and if necessary, (2) Vice Chair of the 3CE Operations Board of Directors to serve through December 2024. Alternatively, request Chair 39 Johnson appoint an ad hoc nominating committee.
7. Recognition of Derek Johnson for his dedicated leadership and service to Central Coast Community Energy
41 Board member reports and comments
Adjournment
Operations Board of Directors
March 13, 2024
10:30am
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940
County of Santa Cruz
701 Ocean Street, Third Floor Training Room
Santa Cruz, CA 95060
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, Suite 406
Santa Barbra, CA 93101
MINUTES
The meeting was called to order at 10:30 AM with 15 members attending in 5 locations and a quorum established.
Directors Present: 3CE Headquarters: De La Rosa, Espinosa, Guertin, Pia, Reynolds County of Santa Cruz: Huffaker, Palacios, Vice Chair Goldstein City of San Luis Obispo: Campbell, Downing, Chair Johnson City of Santa Maria: Posada, Wolfe
County of Santa Barbara: Miyasato, Ramirez
Directors Absent: Hunter (arrived at 10:46am HQ), Lewis, Mendez, Perrault The Chair opened the public comment period for the consent calendar and items not listed on the agenda.
No public comments received.
The Chair closed public comment period.
CONSENT CALENDAR
MOTION: Moved by Vice Chair Goldstein, seconded by Director Wolfe to approve the Consent Calendar.
ACTION: The Motion Carried with a roll call vote: 15/0/4 AYES: Campbell, De La Rosa, Downing, Espinosa, Guertin, Huffaker, Hunter, Lewis, Mendez, Miyasato, Palacios, Pia, Posada, Ramirez, Reynolds, Wolfe, Vice Chair Goldstein, Chair Johnson NOES: None
ABSENT: Hunter, Lewis, Mendez, Perrault
1. Approved Minutes from the January 10, 2024 meeting of the Operations Board
2. Authorized the CEO to execute the Edison Electric Institute Master Power Purchase Agreement and Sale Agreement with J.Aron & Company LLC
3. Authorized the CEO to execute the Edison Electric Institute Master Power Purchase and Sale Agreement with Citigroup Energy Inc.
4. Confirmed February 20, 2024 agreement between 3CE and Stem US Operations Inc. for battery optimization services for an initial 3-year term with optional successive one (1) year terms
5. Received Policy Board Accepted 3CE FY 2022-23 Audited Financial Statements
6. Received Regulatory Update
7. Received Update on FY 2023-24 Energy Programs
8. Received the Quarterly Investment Report
9. Received a Financial Report for the period October 1, 2023 through December 31, 2023
REGULAR AGENDA
10. Community Advisory Council Report
The Chair opened the public comment period.
No public comments received.
The Chair closed public comment period.
ACTION: Discussion Item; no action required
11. CEO Report
a. Staffing Report
b. 3CE Rate Setting
c. California Climate Credit
d. Expansion of System Reliability Pilots- AgFIT
e. California Community Power Owned Asset Evaluation
f. Property Acquisition
The Chair opened the public comment period.
No public comments received.
The Chair closed public comment period.
ACTION: Discussion Item; no action required
12. Presentation on the challenges and impacts of the 2025 Compliance Year implementation of the 24-Hour Slice of Day Resource Adequacy Paradigm
The Chair opened the public comment period.
No public comments received.
The Chair closed public comment period.
ACTION: Discussion Item; no action required
13. Authorized the CEO to: (1) execute a Scheduling Coordination Agreement between 3CE and Tenaska Power Services Co., to provide scheduling services for operational 3CE clean and renewable projects, and any necessary ancillary agreements and documents, for an initial 33-month term through December 2026; and (2) extend the term for successive one (1) year terms
The Chair opened the public comment period.
There were no public comments.
The Chair closed public comment period.
MOTION: Moved by Director Miyasato, seconded by Espinosa to approve.
ACTION: The Motion Carried with a roll call vote: 16/0/3
AYES: Campbell, De La Rosa, Downing, Espinosa, Guertin, Huffaker, Hunter, Miyasato, Palacios, Pia, Posada, Ramirez, Reynolds, Downing, Wolfe, Vice Chair Goldstein, Chair Johnson NOES: None
ABSENT: Lewis, Mendez, Perrault
14. Authorized the CEO to execute an Energy Storage Agreement with San Gabriel Project I LLC, as well as any necessary ancillary documents, for a 125MW storage facility in an amount not to exceed $295,000,000 with a delivery term of 15 years The Chair opened the public comment period.
There were no public comments.
The Chair closed public comment period.
MOTION: Moved by Director Palacios , seconded by Director Pia to approve.
ACTION: The Motion Carried with a roll call vote: 16/0/3 AYES: Campbell, De La Rosa, Downing, Espinosa, Guertin, Huffaker, Hunter, Miyasato, Palacios, Pia, Posada, Ramirez, Reynolds, Downing, Wolfe, Vice Chair Goldstein, Chair Johnson NOES: None
ABSENT: Lewis, Mendez, Perrault
Board member reports and comments
Adjourned at 11:35 A.M.
Staff Report Item 2
TO: 3CE Operations Board of Directions
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Griffin Boyle, Energy Program Analyst
Paige Callaghan, Energy Program Analyst
SUBJECT: Update on FY 2023-24 Energy Programs
DATE: April 10, 2024
RECOMMENDATION:
This memorandum provides the Operations Board of Directors an update on FY 2023- 24 Energy Programs.
DISCUSSION/ANALYSIS:
Attached to this report are status updates on 3CE’s Community Energy Programs (Attachment 1) and Member Agency Energy Programs (Attachment 2). These status updates highlight a variety of program performance metrics, including equipment incentivized, housing units electrified, dollars spent or reserved, and performance on equity (e.g., dollars going towards income qualified residents).
FISCAL IMPACT:
There is no fiscal impact associated with this report and update.
CONCLUSION:
3CE’s Energy Programs support local economies by providing the community and Member Agencies with funding and services to accelerate regional electrification as well as enhanced incentives for underserved customers to reduce GHG emissions throughout the 3CE service area.
ATTACHMENT(S):
1. Update on 3CE Community Energy Programs
2. Update on 3CE Member Agency Services
FY 2023-24 Community Energy Programs
This report provides an update on participation in Central Coast Community Energy’s (3CE’s) Community Energy Programs for the fiscal year to date.
Electrify Your Ride Program
3CE’s Electrify Your Ride (EYR) program provides rebates for the purchase or lease of an electric vehicle (EV), for Level 2 EV Chargers, and electrical upgrades that may be needed to install chargers. The program also provides technical assistance for EV infrastructure buildout at publicly accessible commercial sites and at multifamily residential properties. The FY 2023-24 budget for EYR totals $4 million.
On January 5th, 3CE launched a Direct-Current Fast Charger (DCFC) program for eligible commercial, multifamily, and agricultural customers. Designed as a post-purchase rebate incentive, applicants can receive a rebate for 50% of the total purchase and installation costs of a DCFC, up to $100,000.00 USD. Eligible projects must be publicly available; however, agricultural applicants may install DCFCs on a private lot to support electrification of agricultural equipment. Incentives are available on a first come, first served basis until funding has been fully awarded. Higher incentive amounts are given to income-qualified customers and multifamily-unit buildings to promote greater adoption of transportation electrification in disadvantaged and low-income communities.
Since the beginning of FY 2023-24, 3CE has received 980 applications and has approved over $1.5 million in incentives. The following figures summarize program performance based on applications received in FY 2023-24:
Figure 1 (above): Electrify Your Ride funds distributed by County in FY 2023-24. 19%
2%
35%
25%
19%
FY 2023-24 EYR FUNDS DISTRIBUTED BY COUNTY
SUM OF REBATES = $1,597,680
Monterey County
San Benito County
San Luis Obispo County
Santa Barbara County
Santa Cruz County
60%
31%
9%
FY 2023-24 EYR FUNDS DISTRIBUTED BY MEASURE
SUM OF REBATES = $1,597,680
Battery EV
EV Readiness
Level 2 EV Charger
Figure 2 (above): Electrify Your Ride Program Funds distributed by measure type in FY 2023-
24. Figure 3 (above): Breakdown of funds distributed to income-qualified applicants.
Tier 1 = 201 - 400% FPL; Tier 2 = <200% FPL; N/A = Non-Income Qualified applicants Electric Bus Program
3CE’s Electric Bus Program provides public schools/school districts, farmworker transit organizations, and public transit agencies enrolled in 3CE service the opportunity to receive funding for the purchase of an all-electric bus. In FY 2023-24, the budget for the Electric Bus program is $2 million.
Applications are accepted on a rolling basis until funds are fully distributed. Applicants are encouraged to apply for rebates following the purchase and delivery of an electric bus. Notices of Qualification (NOQ) may be requested to provide applicants with assurances of their eligibility status. Program recipients may elect for funds to be distributed directly from 3CE to the bus manufacturer upon receipt of the final invoice. Applicants are encouraged to stack/leverage other incentive funds and no matching fund source restrictions apply. 13%
24%
63%
FY 2023-24 EYR FUNDS
% Income Qualified Incentives Distributed
Income Qualified - Tier 1
Income Qualified - Tier 2
N/A
To date, 3CE has received one application for an electric school bus to serve a Title 1 school in Monterey County and two School District applications for an electric bus from Santa Cruz and Santa Barbara counties. Payments for an electric school bus charger in Los Olivos and an electric bus rebate in Orcutt have also been made.
Electrify Your Home Program
On December 6, 2023, 3CE re-launched the Electrify Your Home (EYH) program, which continues to provide incentives to contractors enrolled in the TECH Clean California (TECH) program for installation of all-electric heat pump water heating and HVAC systems in existing single and multi-family buildings. EYH reduces purchase costs to 3CE customers to incentivize making the switch to all-electric heat pump technology. The FY 2023-24 budget for EYH is $1.5 million.
Contractors enrolled in TECH also have access to no-cost education and training on electrification design and specification, heat pump installation, building science, and sales and marketing for electric heat pumps. There are currently 75 licensed contractors enrolled in the TECH program that work in 3CE’s service area.
In FY 2023-24 the EYH program has completed fifteen Heat Pump HVAC and three Heat Pump Water Heater projects totaling $38,000 dollars in distributed incentives.
New Construction Electrification Program (NCEP)
This year’s iteration of the NCEP program will continue to provide affordable and farmworker housing developers and homeowners building Accessory Dwelling Units (ADUs) with incentives to build all-electric housing. 3CE also offers incentives to rebuild all-electric homes to people who lost their homes because of a declared natural disaster, such as the 2022-2023 winter storms. Beginning in January 2024, NCEP expanded to include market-rate single and multifamily housing. Also, this year, to streamline the application process, 3CE is encouraging eligible applicants to submit funding requests post-project completion.
Qualifying 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 are provided “downstream” to developers and homeowners on a per-unit basis upon successful completion of the project. In FY 2023-24, 3CE budgeted a total of $1.1 million for NCEP.
In FY 2023-24, 3CE has distributed incentives totaling $334,500. $307,500 of which went to affordable multifamily housing projects in Santa Cruz and Monterey counties. The remaining $27,000 was distributed to private homeowners for All-Electric ADU, Fire-Rebuild, and Single-Family home projects.
Agricultural Electrification Program
3CE’s Agricultural (Ag) Electrification program provides rebates to ag customers for replacing fossil fuel powered equipment with electric powered alternatives including farm tools, irrigation pumps, vehicles, and more. Enhanced incentives are available for small businesses and for businesses replacing equipment damaged or destroyed by a declared natural disaster. The program also provides technical assistance for EV infrastructure buildout at agricultural customer sites. The FY 2023-24 budget for Ag Electrification is $1.8 million.
Rebates for equipment with higher estimated GHG emissions avoidance and those benefiting small to medium sized businesses are supported by greater incentive levels. 3CE covers up to 50% of the cost for farm equipment, providing up to $15,000 USD for smaller “Tier 1” equipment and up to $75,000 USD for larger “Tier 2” equipment. Program funds are offered as a post-purchase rebate.
Since the start of the current fiscal year, 3CE has received eight applicants. Seven additional projects from previous FY applications have been paid out in FY 2023-24, totaling $83,080 USD. All projects were for smaller, Tier 1 equipment.
County
Number of Tier
1 Applications
Number of
Tier 2
Applications
Total
Monterey County 1 2 3
Santa Cruz County 0 1 1
San Benito County 0 1 1
SLO County 0 1 1
Santa Barbara
County
2 0 2
Total: 3 5 8
Table 1: Agricultural Electrification Applicants to-date in FY 2023-24.
FY 2023-24 3CE Member Agency Programs
This report provides an update on FY 2023-24 Member Agency program implementation activities.
Reach Code Program
3CE’s Reach Code program for Member Agencies provides no-cost technical assistance to help local cities and counties adopt and implement reach codes, including stakeholder outreach support. Services include 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 reach codes. In FY 2023-24, 3CE budgeted a total of $100,000 for the Reach Code program.
Since launching the Reach Code program on October 1, 3CE has engaged four Member Agencies:
Member Agency Reach Code Type
CITY OF SAN LUIS
OBISPO
New Construction (complete) and Existing Buildings
(underway)
CITY OF SANTA CRUZ Existing Buildings (complete)
CITY OF GOLETA Electric Vehicle Charging Infrastructure (underway) COUNTY OF MONTEREY Electric Vehicle Charging Infrastructure (underway) Electrify Your Fleet Program
3CE’s Electrify Your Ride (EYF) program provides rebates to Member Agencies after the purchase or lease of eligible vehicles as well as an option to reserve funds in advance of taking possession of an eligible vehicle. To reserve funds, applicants must provide proof of intent to acquire an eligible vehicle. Applications will be accepted until program funds are fully reserved or spent. A 3CE Member Agency applicant is eligible to reserve or be awarded up to $150,000 in EYF incentives in the program year. In FY 2023-24, 3CE budgeted a total of $2.1 million for EYF.
Since launching the program on October 1, 3CE has incentivized 14 Battery Electric Vehicles totaling $126,000.
Member Agency Equipment Type Quantity Total Incentive
CITY OF SAN LUIS OBISPO Battery Electric Vehicle (BEV) 1 $5,000.00 CITY OF SANTA MARIA Battery Electric Vehicle (BEV) 7 $79,000.00 COUNTY OF SANTA CRUZ Battery Electric Vehicle (BEV) 6 $42,000.00 Total 14 $126,000
Charge Your Fleet Program
3CE’s Charge Your Fleet (CYF) program provides rebates for the purchase and installation of Level 2 or Level 3 (DC Fast Chargers) EV chargers. Member Agencies are eligible for up to $150,000 in CYF each year. 3CE’s 2023-24 CYF budget totals $1.2 million.
Since launching the program on October 1, 3CE has incentivized 24 EV chargers totaling $208,698.
Member Agency Equipment Type Quantity Total Incentive
CITY OF CARPINTERIA Level 2 10 $48,698.25
CITY OF SANTA CRUZ Level 2 4 $20,000.00
CITY OF SANTA MARIA Level 2 8 $40,000.00
CITY OF WATSONVILLE Level 3 2 $100,000.00
Total 24 $208,698.25
Plan Your Fleet Program
3CE’s Plan Your Fleet (PYF) program provides no-cost planning, design, and engineering consulting to Member Agencies to accelerate fleet electrification and EV charging infrastructure development across the Central Coast. 3CE’s FY 203-24 budget for PYF is $250,000.
This fiscal year to date, the jurisdictions of Carpinteria, Greenfield, Monterey County, Santa Barbara County, and City of Marina are participating in the program to receive fleet replacement plans, charging infrastructure designs, or both.
Member Agency Building and Transportation Electrification Working Groups 3CE is facilitating working groups made up of Member Agency staff focused on building and transportation electrification to promote existing programs and identify needs, barriers, and scalable solutions for regional electrification. The next working group event is currently scheduled for Spring 2024.
Staff Report Item 3
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Jerri Strickland, Policy Advisor
Kalia Mitchell-Silbaugh, Policy Advisor
SUBJECT: Receive Regulatory Update
DATE: April 10, 2024
RECOMMENDATION:
This recommends the Operations Board receive the attached Regulatory Update.
DISCUSSION/ANALYSIS:
Please find attached 3CE’s Regulatory Update, providing the latest information on the following:
Resource Adequacy (RA)
Provider of Last Resort (POLR) and Emergency Transition Planning Preventing Disconnections
Demand Flexibility
Bioenergy Market Adjustment Tariff (BioMAT)
Renewable Portfolio Standard (RPS)
Load Management Standards (LMS) and Real-Time Pricing GO 156 Annual Supplier Diversity Report & Plan
Energy Resources Recovery Account (ERRA) Compliance
CONCLUSION:
This is an informational item only.
ATTACHMENT(S):
1. Regulatory Update
Regulatory Update
April 10, 2024
2 Table of Contents
REGULATORY UPDATE .........................................................................................................................................................3 Resource Adequacy (RA) -...............................................................................................................................................3 Provider of Last Resort (POLR) and Emergency Transition Planning -.......................................................4 Preventing Disconnections -...........................................................................................................................................4 Demand Flexibility -...........................................................................................................................................................5 Bioenergy Market Adjustment Tariff (BioMAT) -..................................................................................................6 Renewables Portfolio Standard (RPS) -....................................................................................................................6 Load Management Standards (LMS) and Real-Time Pricing - .........................................................................7 GO 156 Annual Supplier Diversity Report & Plan -...............................................................................................7 Energy Resources Recovery Account (ERRA) Compliance –............................................................................8
3 REGULATORY UPDATE
Resource Adequacy (RA) - R.23-10-011
Issue
The Resource Adequacy (RA) program is the California Public Utilities Commission’s (CPUC) main grid reliability planning program. All load serving entities (LSEs) under the CPUC’s jurisdiction, including CCAs, must demonstrate purchase of a specified amount of eligible RA generation capacity each month and year to comply with RA program requirements. Increasing demand for and a decreasing supply of eligible RA capacity over the past five years have resulted in sharply increased prices and unprecedented difficulty procuring sufficient RA to achieve compliance. The CPUC has launched a new initiative to enhance the Slice-of-Day (SOD) framework for the Resource Adequacy (RA) compliance period of 2025.
Status
The revised SOD framework mandates Load Serving Entities (LSEs) to secure sufficient RA-qualified resources to meet the highest demand for every hour of the day, each month, moving away from a fixed obligation model. On February 6, 2024, CPUC published a summary report on the SOD framework's rollout, discussing its execution and considering feedback and suggestions on possibly delaying its start to 2026. 3CE, in collaboration with CalCCA, our industry association, has been actively contributing comments aimed at enhancing the grid's affordability and reliability. Our feedback has supported the idea of allowing hourly load obligation trading within the SOD framework, granting temporary exemptions from RA penalties during the framework's introduction, incorporating an effective Planning Reserve Margin (PRM) into evaluations, and recommending postponing the SOD framework's launch to 2026 to ensure its smooth implementation.
Furthermore, CalCCA filed a Petition for Writ of Review in October 2023 against the CPUC's denial of a rehearing regarding Resolution E-5258, which suspended expansions of 3CE and Ava Community Energy. On March 22, 2024, the CPUC filed its answer to CalCCA’s Petition for Writ. The response continued to maintain the CPUC’s disposition that it has unlimited authority to enforce the RA program and penalties.
Next Steps
A PD on RA reform and party proposals is expected by May 2024. CalCCA will respond to the CPUC’s answer to the Petition for Writ of Review on May 16th.
4 Provider of Last Resort (POLR) and Emergency Transition Planning - R.21-03-011 Issue
The Provider of Last Resort (POLR) is the backstop entity that provides electric service to customers of a load serving entity if that LSE fails suddenly. Historically the role has—by default—been held by the investor-owned utilities (IOUs, namely Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric), but this proceeding is establishing a process to allow CCAs and other non-IOU LSEs to become POLR in their service areas. This proceeding is also considering rules designed to prevent LSE failures that have various implications for 3CE finances and operations. This includes changes to how much money CCAs must post as insurance against their own failure (called the Financial Security Requirement or FSR). 3CE’s FSR has been set at $147,000 since 2018, but that amount is likely to increase with the reforms being considered in this proceeding.
Status
The CPUC issued a long overdue Proposed Decision (PD) on FSR changes on March 14, 2024. The PD suggests various changes to the FSR calculation methodology, financial monitoring requirements, and registration process for CCAs. Staff analysis has shown that, if the PD is adopted, the minimum FSR required to post for PG&E will increase from $147,000 to $1.71M. The PD also calls for CCAs to provide audited financial statements twice per year. While the increase in the FSR will not have a significant financial impact and 3CE is amendable to providing financial documentation to the CPUC, staff are advocating for the regulations to remain consistent with existing statutory obligations for CCAs, which call for audited financial statements once annually.
Next Steps
Comments and replies on the PD are due on April 3 and 8. Staff continue to promote that any financial monitoring of the CCAs should be aligned with what is required by law of the CCAs.
Preventing Disconnections - (R.18-07-005)
Issue
In 2020, the CPUC established temporary residential disconnection rate caps for the IOUs, including a 3.5% cap for PG&E and a 4% cap for SCE, set to expire at the end of 2024. Further, in 2021, the CPUC directed the IOUs to allocate payments on outstanding utility bills using a pro-rata method, which splits payments proportionally between utility and CCA charges, through the end of September 2024. This pro-rata method temporarily replaced the current IOU tariff rules which require a “waterfall” payment method by which payments on past-due bills are credited first to the utility portion of the bill and second to the CCA portion of the bill, causing CCAs to disproportionately bear impacts of customer payment delays. These temporary measures were implemented in the context of the COVID-19 pandemic, when the IOUs were not disconnecting residential customers. Because the utilities have begun to disconnect residential customers again and the extension deadlines are approaching, the CPUC is revisiting these decisions.
Status
On March 22, the CPUC issued a Ruling requesting stakeholder feedback on current IOU disconnection caps and whether the CPUC should extend and/or make permanent the use of the pro-rata payment method past September 2024 in lieu of returning to the waterfall method.
Next Steps
3CE staff will support the development of comments that advocate for maintaining the pro-rata payment method and low disconnection caps. Comments are due April 19, 2024.
5 Demand Flexibility - R.22-07-005
Issue
Launched in 2022, this CPUC proceeding aims to enhance demand flexibility and grid reliability in California, mitigating costs from grid stress. 3CE participates to protect its ratemaking authority, track IOU rate changes, design potential new programs, solve data sharing issues affecting rate design, and prevent cost shifts among customers. Additionally, this proceeding will be where the implementation of AB 205's mandate for an income-graduated fixed charge (IGFC) by July 1, 2024, will be considered. The goal of the IGFC is to lower energy costs for low-income residents through a fixed monthly charge. Although this charge affects only the delivery side and not 3CE's direct operations, 3CE staff monitor developments to gauge impacts on customer experience.
Expanded Pilot Program Status
Earlier this year, the CPUC issued a Decision expanding the AgFit pilot to all CCA customers in PG&E’s service territory and extending the pilot to December 31, 2027. AgFit offers agricultural customers assistance with water pumping automation, time-varying rates that incentivize pumping during off-peak hours, and on-bill savings. On March 25, PG&E submitted their Implementation Advice Letter (AL) regarding the expansion of the AgFit pilots. This plan, having undergone review and input from 3CE staff, aligns with the anticipated standards for joint marketing, education, and outreach efforts. Furthermore, it addresses essential operational requirements, such as the utilization of CCA rates for offering customers a generation incentive, which are crucial for a successful CCA-IOU collaboration in launching the pilot.
Income Graduated Fixed Charge Status
On March 27, the California Public Utilities Commission (CPUC) released a Proposed Decision (PD) concerning the Income Graduated Fixed Charge (IGFC). This charge is to be applied as part of the Investor-Owned Utilities' (IOUs) Transmission and Distribution fees on consumer bills, excluding any generation charges. Set to take effect in the first quarter of 2026, the charge is structured across three tiers: approximately $6 monthly for California Alternate Rates for Energy (CARE) program participants, around $12 monthly for Family Electric Rate Assistance (FERA) program participants and low-income individuals in affordable housing, and $24.15 monthly for all other customers. The CPUC has designed this approach in line with AB 205, aiming to ensure that customers with lower incomes who have average utility consumption will see a reduction in their bills, even without altering their energy use.
Next Steps
3CE staff have been collaborating with PG&E to ensure agreement on final implementation details and, if agreeable, will move forward with filing its own AL to participate in the Expanded AgFit Pilots. 3CE staff are in process of analyzing the impacts of the IGFC PD and will participate in shaping the Final Decision through upcoming comments and replies.
6 Bioenergy Market Adjustment Tariff (BioMAT) - R.22-10-010 Issue
BioMAT is a procurement program opened in 2015 to encourage the development of small bioenergy projects in California. The program is unique in that it allows load serving entities (LSEs) contracting with these projects to recover the costs from all California electricity users through the Public Purpose Programs (PPP) charge. In 2021, 3CE and other CCAs successfully lobbied legislators to reverse the exclusion of CCAs from BioMAT with the passage of AB 843. AB 843 was the first time CCAs gained access to PPP funding, setting a valuable policy precedent. The CPUC began implementation of AB 843 in October 2022 by opening of a new proceeding to work through the details of CCA participation.
Status
3CE has signed a contract with Accion, the CPUC-designated BioMAT program vendor responsible for program administration and website design. On March 13, CalCCA submitted a supplemental BioMAT program enrollment Advice Letter (AL) on behalf of participating CCAs, including 3CE, requesting approval of pro forma program documents and the CCAs' executed contracts with Accion. . 3CE has also joined a joint CCA effort to advocate for review and extension of the BioMAT program, which is currently set to end on December 31, 2025. On March 4, the Joint CCAs submitted comments requesting that expedited consideration of a 5-year BioMAT program extension be included in the scope of the new RPS proceeding.
Next Steps
Staff are awaiting the issuance of a Resolution on the March 13 Tier 2 AL and CCA pro forma documents for participation in the BioMAT program. In the meantime, 3CE is, communicating with Accion to provide input on the development of 3CE’s BioMAT webpage as well as taking other implementation steps in preparation to participate in BioMAT.
Renewables Portfolio Standard (RPS) - R.24-01-017
Issue
The CPUC’s Renewables Portfolio Standard (RPS) proceeding monitors compliance by retail sellers, including CCAs, within California’s RPS program which requires that 60% of all electricity retail sales be served by renewable resources by 2030 and at least 65% of the procurement a retail seller counts toward the RPS requirements be from long-term contracts.
Status
On January 25, the CPUC voted to initiate a new rulemaking to continue implementation of the RPS program, including reviewing RPS procurement plans, providing tools for RPS analysis and reporting, assessing RPS compliance, and integrating new legislative mandates into the RPS program. 3CE is a party to the new proceeding and submitted joint CCA comments on March 4 asking that the Commission include extension of the BioMAT program in scope.
Next Steps
Staff will actively monitor and participate in the new RPS proceeding to advocate for beneficial changes to the BioMAT program and the use of appropriate tools and analysis to enhance the CPUC’s reporting process. A representative of the Joint BioMAT CCAs will attend the prehearing conference on April 4 to ask the CPUC to include consideration of a BioMAT program extension in the scope of the proceeding. 3CE will maintain its commitment to ongoing RPS compliance, aligning with the Board's directive to surpass the state's goal well in advance by procuring 100% clean and renewable energy by 2030.
7 Load Management Standards (LMS) and Real-Time Pricing - 23-LMS-01 Issue
The California Energy Commission’s (CEC) updated Load Management Standards (LMS) now require IOUs, municipal utilities, and CCAs with load greater than 700 GWh/year to upload time-dependent rates to the CEC’s Market Informed Demand Automation Server (MIDAS) platform, develop a LMS Compliance Plan by March 2024, and present to their governing bodies, for approval by the CEC, at least one hourly marginal cost based rate option (often referred to as a real-time rate) for their customers by 2025.
Status
Following the Policy Board’s adoption of 3CE’s LMS Plan on February 21, 3CE filed its plan with the CEC on March 7, well in advance of the April 1 goal date.
Next Steps
In accordance with 3CE’s LMS Plan, staff are ensuring that 3CE is ready to provide IOU partners with all relevant information to facilitate the inclusion of Rate Identification Numbers (RINs) on customer billing statements before April 1, 2024 the next milestone set forth in the LMS.
GO 156 Annual Supplier Diversity Report & Plan - R.21-03-010 Issue
GO 156 is a California Public Utilities Commission (CPUC) program that requires California load-serving entities to report on the portion of their contracts and subcontracts that are signed with businesses that qualify as Women, Minority, Disabled, Veteran, Lesbian, Gay, Bisexual, Transgender Business Enterprises (WMDVLGBTBE).
Status
3CE Staff submitted its 2023 Annual Supplier Diversity Report and 2024 Plan on February 28, prior to the March 1 deadline. The Plan presents 3CE’s 2023 annual non-energy spending and planned activities to support small, local, and diverse businesses in 2024. As done in previous submissions, staff highlighted how equity is a priority of 3CE board decisions and organizational practices.
Next Steps
3CE staff met with the CPUC’s Supplier Diversity team on March 19 to review its 2023-2024 Annual Supplier Diversity Report and received high praise on 3CE’s community engagement efforts, stating that “if we did rankings on community outreach, 3CE would be number one.” 3CE staff will attend the CPUC’s Small and Diverse Business Expo on April 4 as part of ongoing efforts to support and connect with these businesses.
8 Energy Resources Recovery Account (ERRA) Compliance – A.22-02-015; A.22-04-001 Issue
Energy Resource Recovery Account (ERRA) compliance filings are made annually by the Investor Owned Utilities (IOUs) for the approval of costs associated with Utility Owned Generation (UOG) operations and fuel procurement, Portfolio Allocation Balancing Account (PABA) entries, economic dispatch of electric resources, and contract administration. IOUs are required to demonstrate compliance with CPUC decisions and the California Public Utilities Code. All CCAs participate jointly in these proceedings through CalCCA to ensure unbundled customers are treated equitably in IOU rate-setting decisions.
PG&E Status
In 2022, PG&E disclosed over 900MW of excess RA after initial reports showed none. PG&E's motion to block Joint CCAs from questioning its RA sales was quickly approved by the ALJ, marking the third such ruling against the Joint CCA's efforts to scrutinize PG&E's RA transactions. The Joint CCAs have appealed these rulings, seeking a review while the case progresses. PG&E continues to maintain that the topic of RA sales is out of scope for the ERRA proceeding, CalCCA replied to this response on March 21. The Joint CCA’s were granted a 4- week extension on opening briefs as the CPUC’s decision on the appeal will determine the approach taken.
On March 21, staff initiated Joint CCA counsel meetings to strategize for PG&E’s recently initiated 2023 ERRA Compliance Case. This year’s review will focus on areas of concern that were found in both the ongoing 2021 and 2022 PG&E Compliance cases.
SCE Status
The 2022 SCE ERRA Compliance Case highlights two unresolved issues: SCE's overcharge on franchise fees to departing load customers and its attempt to recover CAISO penalty costs through customer rates. The Joint CCAs are advocating for a refund of the over collected franchise fees and opposing the inclusion of CAISO penalties in rates. In Opening briefs, the SCE CCAs will argue for adoption of one of three recommendations: 1) that SCE should refund customers who overpaid via shareholder funds, 2) to refund customers via “sharing” the costs across bundled (70%) and unbundled customers (30%), or 3) to refund customers via a future adjustment of the franchise fees.
Next Steps
Opening Briefs for the 2022 PG&E ERRA case are due April 22 and initial protests for the new 2023 ERRA case are due April 5. Opening Briefs for the SCE 2022 ERRA Case are due April 12.
Staff Report Item 4
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Juan Lopez, Director of Finance
SUBJECT: Receive a financial report for the period October 1, 2023, through February 29, 2024 DATE: April 10, 2024
RECOMMENDATION:
Receive a financial report for the period October 1, 2023, through February 29, 2024.
SUMMARY:
Over the course of five months ending February 29, 2024, operating revenues amounted to $208.3 million, and operating expenses totaled $171.7 million for a net operating income of $36.7 million. Non-operating revenue added $5.1 million to the total revenue, tallying a positive change in net position of $41.7 million.
Year-to-date operating revenue is $17.7 million lower than budget, primarily due to the seasonal fluctuations in revenues and expenditures and the lower-than-expected residential customer load.
However, it is expected that operating revenue will align with the budget as the fiscal year progresses.
Meanwhile, investment revenue exceeds the budget by $2.5 million, as staff actively manages in a favorable short-term interest rate environment.
Year-to-date operating expenditures are higher than budget by $7.6 million Energy costs were $14.0 million higher than budget. The variance is from resource adequacy (RA) capacity purchases and higher cost of energy. Non-energy operating costs were $6.4 million lower than budget due to less-than-planned costs for energy programs, contracted services, and staff vacancies.
Net position at the end of February 29, 2024, totaled $283.6 million, a $41.7 million increase from the start of the fiscal year. The increase is attributed to growth in prepaid expenses to suppliers, collateral posted with the CAISO and suppliers, investments, and the purchase of the San Luis Obispo office,
followed by a decrease in accrued electricity costs. These positive results are expected to be minimized throughout the remainder of the fiscal year as energy costs and resource adequacy purchases materialize.
Cash, cash equivalents, and short-term investments totaled $259.4 million, a $4.4 million increase from the start of the fiscal year. Liquidity is expected to increase for the rest of the fiscal year, with a short-term decrease in April due to RA capacity purchases.
FISCAL IMPACT:
There is no financial impact associated with receiving this report.
ATTACHMENT(S):
1. February 29, 2024 Financial Report
Compiled Financial Statements 1
Compiled Budgetary Comparison Schedule 6
Budget Variance Commentary 9
Financial Dashboard 10
Investment Summary 11
Accounts Receivable Aging Summary 12
Table of Contents
TREASURER REPORT
Fiscal Year to Date
As of February 29, 2024
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 February 29, 2024, 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
March 20, 2024
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com
Current assets
Cash and cash equivalents - unrestricted 180,188,884$
Accounts receivable, net of allowance 33,130,998
Accrued revenue 28,084,155
Other receivables 315,258
Loan receivable 188,951
Prepaid expenses 11,141,435
Deposits 18,088,344
Cash - restricted 294,000
Investments 79,180,928
Total current assets 350,612,953
Noncurrent assets
Deposits 23,182
Loan receivable 1,425,882
Lease asset, net of amortization 1,286,617
Land 898,658
Capital assets, net of depreciation and amortization 1,917,034 Total noncurrent assets 5,551,373
Total assets 356,164,326
Current liabilities
Accrued cost of electricity 35,553,718
Accounts payable 1,176,513
Other accrued liabilities 1,261,010
User taxes and energy surcharges due to other governments 1,788,926 Lease liability 310,590
Security deposits - energy suppliers 501,000
Total current liabilities 40,591,757
Noncurrent liabilities
Security deposits - energy suppliers 30,931,720
Lease liability 1,034,791
Total noncurrent liabilities 31,966,511
Total liabilities 72,558,268
Net investment in capital assets 2,756,928
Restricted for security collateral 294,000
Unrestricted 280,555,130
Total net position 283,606,058$
NET POSITION
As of February 29, 2024
STATEMENT OF NET POSITION
CENTRAL COAST COMMUNITY ENERGY
ASSETS
LIABILITIES
OPERATING REVENUES
Electricity sales, net 208,290,070$
Other income 51,545
Total operating revenues 208,341,615
OPERATING EXPENSES
Cost of electricity 160,286,023
Contract services 4,469,535
Staff compensation 3,047,577
Other operating expenses 635,349
Program incentives 2,998,521
Depreciation and amortization 234,404
Total operating expenses 171,671,409
Operating income (loss) 36,670,206
NONOPERATING REVENUES (EXPENSES)
Interest and investment returns 5,097,084
Interest and financing costs (32,557)
Nonoperating revenues (expenses) 5,064,527
CHANGE IN NET POSITION 41,734,733
Net position at beginning of period 241,871,325
Net position at end of period 283,606,058$
Five Months Ended February 29, 2024
AND CHANGES IN NET POSITION
STATEMENT OF REVENUES, EXPENSES
CENTRAL COAST COMMUNITY ENERGY
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 208,473,231$
Other operating receipts 51,545
Receipts of deposits and collateral 8,251,010
Payments to suppliers for electricity (180,250,029)
Payments of deposits and collateral (18,669,820)
Payments for other goods and services (5,872,484)
Payments for program incentives (3,685,329)
Payments of staff compensation (3,041,944)
Payments of taxes and energy surcharges to other governments (3,735,732) Net cash provided by operating activities 1,520,448
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Interest and related expense payments (5,944)
Net cash provided by non-capital financing activities (5,944)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments of lease liability (148,605)
Payments to acquire capital assets (2,348,660)
Net cash provided (used) by capital and related financing activities (2,497,265)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 4,442,231
Proceeds from investment sales 49,864,889
Principal payments received of loan receivable 93,165
Purchase of investments (68,968,509)
Net cash provided (used) by investing activities (14,568,224) Net change in cash and cash equivalents (15,550,985)
Cash and cash equivalents at beginning of year 196,033,869 Cash and cash equivalents at end of period 180,482,884$ Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted 180,188,884$
Cash - restricted 294,000
Cash and cash equivalents 180,482,884$
Five Months Ended February 29, 2024
STATEMENT OF CASH FLOWS
CENTRAL COAST COMMUNITY ENERGY
Operating income (loss) 36,670,206$
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation and amortization expense 234,404
(Increase) decrease in:
Accounts receivable, net of allowance (371,723)
Accrued revenue (3,219,049)
Other receivables 3,781,417
Prepaid expenses (10,761,224)
Deposits (11,594,250)
Increase (decrease) in:
Accrued cost of electricity (13,368,758)
Accounts payable (1,580,423)
Other accrued liabilities 519,209
User taxes and energy surcharges due to other governments 35,199 Security deposits - energy suppliers 1,175,440
Net cash provided by operating activities 1,520,448$
CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
Five Months Ended February 29, 2024
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
1 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 February 29, 2024, 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
March 20, 2024
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com
Actual Budget $ Variance
%
Variance Actual Budget $ Variance
%
Variance
Annual
Budget
Annual Budget
Less Actual
YTD
REVENUES AND OTHER SOURCES
Electricity sales $ 41,073,968 $ 45,849,000 $ (4,775,032) -10% $ 211,098,841 $ 229,105,000 $ (18,006,159) 92% $ 563,933,447 $ 352,834,606 Uncollectible accounts (546,284) (625,000) 78,716 -13% (2,808,771) (3,125,000) 316,229 90% (7,500,000) (4,691,229) Electricity sales, net 40,527,684 45,224,000 (4,696,316) -10% 208,290,070 225,980,000 (17,689,930) 92% 556,433,447 348,143,377 Investment and miscellaneous income 940,492 533,000 407,492 76% 5,148,629 2,667,000 2,481,629 193% 6,400,000 1,251,371 Total revenues and other sources 41,468,176 45,757,000 (4,288,824) -9% 213,438,699 228,647,000 (15,208,301) 93% 562,833,447 349,394,748 EXPENDITURES AND OTHER USESCurrent Expenditures Cost of energy 32,035,069 29,884,000 (2,151,069) -7% 160,484,068 146,489,000 13,995,068 110% 520,297,514 359,813,446 Salaries and benefits 559,115 795,000 235,885 30% 3,047,577 3,974,000 (926,423) 77% 9,537,076 6,489,499 Services and supplies 1,862,286 2,750,000 887,714 32% 8,294,315 13,750,000 (5,455,685) 60% 32,998,857 24,704,542 Total current expenditures 34,456,470 33,429,000 (1,027,470) -3% 171,825,960 164,213,000 7,612,960 105% 562,833,447 391,007,487 Surplus (deficit) 7,011,706$ 12,328,000$ (5,316,294)$ -43% 41,612,739$ 64,434,000$ (22,821,261)$ -35% -$ (41,612,739)$ Annual
CENTRAL COAST COMMUNITY ENERGY
BUDGETARY COMPARISON SCHEDULE
Five Months Ended February 29, 2024
Current Month
Variance fav. (unfav.)
Year-To-Date
Variance fav. (unfav.)
Budget Item YTD Variance Comment
Electric Sales Revenue (7.9%) 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 9.6% 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. Cost of energy includes scheduling coordinator fees for budget purposes only.
Staffing (23.3%) Staffing expenses are under budget due to the timing of new hires.
Professional Services (59.9%) This category includes accounting, IT, technical and other consultants.
Legal Costs (36.1%) This category includes outside legal costs for regulatory and energy procurement needs.
Marketing and customer enrollment (46.2%) Variance is mostly due to the lower than anticipated costs of recent customer enrollments.
Data Management Services (1.8%) These fees non-discretionary and are charged on a per customer basis.
Utility Service Fees 3.7% These are PG&E and SCE fees charged on a per customer basis.
Other General & Administrative (49.2%) This category includes occupancy costs, industry membership dues, and other general and administrative costs.
Energy and Related Programs (48.1%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items
CENTRAL COAST COMMUNITY ENERGY
October 1, 2023 through February 29, 2024
$8.5
$15.3
Act
Bud
$47.8
$79.5
$36.1
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
$208.3
$226.0
$556.4
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
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) 416 393 409 406 361
Budget 420 402 416 419 383 432 396 419 426 442 456 435
0 50
100
150
200
250
300
350
400
450
500
CUSTOMERS
SALES VOLUME
361 GWh
STD MARGIN
$8.5M (21%)
Δ in NET ASSETS
$7.0M
REVENUE
$41.5M
Cumulative YTD Electricity Sales
Cumulative YTD Direct Margin
(Electricity Sales less Cost of Energy)
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 Interest income).
ELECTRICITY SALES: Sales from electricity (net of uncollectible).
STD MARGIN: Electricity Sales less cost of energy (Forecasting & scheduling included in Cost of Energy to match budget) ACTUAL: Same as sales volume above
BUDGET: Volumes from FY23/24 budget
Monthly Sales Volume (GWh)
Financial Dashboard: February 2024
Margin %
CUSTOMERS
456,000
ACTIVE
February revenue of $41.5M accounts for
461 GWh in net retail consumption, 22 GWh
below budget.
YTD Electricity revenue is $208M compared
to budget of $226M. YTD Direct Margin
(defined as Electricity Sales less Cost of
Energy) of $47.8M is below budget by
$31.7M.
The chart to the right shows volume
comparison to budgeted volume.
The charts below display cumulative
revenue and margin $ vs budget.
46%
46%
8%
40%
47%
13%
Res
Com
Ag
YTD Month
49%
44%
7%
44%
45%
12%
Res
Com
Ag
YTD Month
Revenue $41.5
C.O.E. $32.0
OpEx $2.4
Net Income $7.0
21.0%
33.9%
Act
Bud
Margin $
10 Page 34 of 42
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 127,068,814$ 109,380,169$ 100,067,132$ 99,091,003$ 93,511,093$ Gains/Losses/Interest 1,680,589$ 382,898$ 328,802.57 339,891.42 331,259.57 297,736.65 Average APY 3.62% 3.61% 4.08% 4.01% 3.82%INVESTMENTSRiver City Bank - Treasury-indexed productsFunds Invested - Average Balance 40,000,000$ 50,000,000$ 40,000,000$ 40,000,000$ 30,000,000$ Gains/Losses/Interest 1,026,879$ 178,385.54 213,485.85 236,035.13 205,868.28 193,103.80 Average APY 5.35% 5.12% 7.08% 6.18% 7.72%RBC GAM / Principal Financal/ Schwab/ Chase/FidelityFunds Invested - Average Balance 89,306,054$ 94,745,123$ 110,223,316$ 115,699,944$ 136,141,272$ Gains/Losses/Interest 2,211,117$ 375,490.63 434,211.19 478,991.16 480,276.43 442,147.15 Average APY 5.05% 5.50% 5.21% 4.98% 3.90%
CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2023 through February 29, 2024
Current 0 - 30 Days 31 - 60 Days 61 - 90 Days > 91 Days A/R Balance 18,333,366$ 12,360,318$ 2,670,063$ 469,202$ (701,951)$ 33,130,998$
CENTRAL COAST COMMUNITY ENERGY
Summary of Accounts Receivable, Net of Bad Debt Allowance As of February 29, 2024
Staff Report Item 5
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: CEO Report (Discussion Item)
DATE: April 10, 2024
POWER SUPPLY UPDATE
On March 29, 3CE’s fourth solar PV and energy storage project began delivering renewable energy to our customers. Victory Pass, a 100 MW solar PV plus 25 MW energy storage facility located in Riverside County, will serve 6% of 3CE’s demand. It is the seventh clean and renewable project 3CE has brought online to date. Collectively, these projects serve 33% of 3CE’s demand, help insulate our customers from market price fluctuations, and contribute to a cleaner and more reliable grid for California. 3CE anticipates issuing a new Request for Offers (RFO) on April 23 to secure offers for new clean and renewable projects. We currently have close to 70% of our demand covered with sixteen long-term renewable agreements, with seven online projects and the remainder still under development. This RFO will allow us to consider and select additional cost-effective projects to move us closer to our goal of serving 100% of our retail demand with clean and renewable resources. Bids will be due in late May, with selections and contract negotiations to begin in June or July.
ELECTRICITY MARKET UPDATE
Wholesale electricity prices were relatively lower in March due to softer demand and higher-than-expected hydrogeneration as California reservoirs are not able to store the early runoff. It is not uncommon for wind and solar output to be curtailed in March due to low demand, but the large hydro runoff contributed to higher-than-normal reductions in these intermittent resources’ output.
PROVIDER OF LAST RESORT (POLR) UPDATE
On March 14th, the CPUC issued a Proposed Decision (PD) in the Provider of Last Resort (POLR) proceeding, focusing on the scenario of an unplanned mass return of CCA customers to the Investor-Page 37 of 42 Owned Utilities. The PD outlines the Financial Security Reserve (FSR), a requirement that ensures LSEs cover the costs of potentially returning customers to the POLR for generation services.
The PD would increase 3CE and other LSE’s FSR requirements. Under the PD, the minimum FSR required of an LSE would be the greater value of the current minimum of $147k or the product of multiplying the number of customers by an IOU specific administrative fee. This change would raise 3CE's minimum FSR PG&E from $147,000 to approximately $1.71M. The maximum FSR 3CE could have to cover depends on several factors, including Resource Adequacy (RA) market price benchmarks and average customer rates.
If the PD is adopted, staff analysis projects that 3CE would only be required to post the minimum FSR for each IOU at this time and would not have a significant financial impact.
Additionally, the PD proposes a two-tier financial monitoring system requiring all Community Choice Aggregators (CCAs) to submit audited financial statements biannually, with additional data required from those triggering specific conditions. A Final Decision from the CPUC will be forthcoming.
ATTACHMENT(S):
None.
Staff Report Item 6
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Heather Vowell, Board Clerk
SUBJECT: Consider nominations and appoint: (1) Chair of the 3CE Operations Board of Directors to serve through December 2024; and, if necessary, (2) Vice Chair of the 3CE Operations Board of Directors to serve through December 2024. Alternatively, request Chair Johnson appoint an ad hoc nominating committee
DATE: April 10, 2024
RECOMMENDATION:
Solicit nominations and appoint: (1) Chair of the 3CE Operations Board of Directors to serve through December 2024; and, if necessary, (2) Vice Chair of the 3CE Operations Board of Directors to serve through December 2024.
BACKGROUND:
Section 3.9.2 of the 3CE Joint Exercise of Powers Agreement (the JPA) requires the Operations Board select a Chair, who shall preside over Operations Board meetings. The JPA also requires the selection of a Vice Chair, who shall serve in the absence of the Chair. Article VI, Section 2, of the Operating Rules and Regulations provides that the Vice Chair shall perform the duties of the Chair in the Chair’s absence.
The term of office of the Chair and Vice Chair continues for one year, but there shall be no limit on the number of terms held by either the Chair or Vice Chair.
At its October 12, 2022 meeting the Operations Board adopted Resolution No. OB-2022-04 articulating the preference that the Chair and Vice-Chair be selected such that one Officer be selected from Directors representing member agencies from the northern (Monterey, San Benito, Santa Cruz) service area and the other be selected from Directors representing member agencies from the southern (San Luis Obispo, Santa Barbara) service area. Further it was the Operation Board’s preference that the Chair and Vice-Chair positions rotate between northern and southern service area every two years. Resolution
No. OB-2022-04 calls on the Policy Board to amend the Operating Rules and Regulations to fully effectuate the geographic diversity of chair & vice-chair.
Chair Johnson was appointed Chair in January 2023 with his two-year term ending in December 2024.
DISCUSSION:
Chair Johnson informed the Board and staff that, after careful consideration, he is resigning, effective April 26, 2024, from the 3CE Operations Board as he transitions to serve as the CEO of Marin County.
Staff solicited the Boardmembers’ interest in serving as Chair on March 15.
While Resolution No. OB-2022-04 clarifies the preference of the Operations Board to rotate seats between the northern and southern service areas, it was not ratified by the Policy Board. Furthermore, neither the JPA, the Operating Rules and Regulations, nor Resolution No. OB 2022-04 anticipates or addresses the issue of an officer’s resignation.
To ensure continuity, ongoing oversight, and effective administration of 3CE operations to complete the current term through December 2024, the Operations Board should consider floor nominations for, and select, a Chair. In the event the Vice-Chair is nominated and selected as Chair, the Board shall consider floor nominations for, and select, a Vice-Chair to serve through December 2024.
Alternatively, the Board could request Chair Johnson establish an ad hoc nominating committee that would return to the Board in May with its nominations.
FISCAL IMPACT:
There is no fiscal impact associated with this action.
Staff Report Item 7
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Dawn Mathes-Park, Director of Communications and Outreach SUBJECT: Recognition of Derek Johnson for his dedicated leadership and service to Central Coast Community Energy
DATE: April 10, 2024
RECOMMENDATION:
This memorandum recommends the Operations Board recognize Derek Johnson for his dedicated leadership and service to 3CE.
BACKGROUND:
Representing the City of San Luis Obispo, Derek Johnson joined 3CE’s Operations Board January 9, 2019, when the city first joined the agency. Johnson was appointed Chair January 11, 2023.
Derek Johnson has served the City of San Luis Obispo for 12 years, as City Manager for the last six years and previously as Assistant City Manager and Director of Community Development. A native of Marin County, Johnson will fulfill a life-long dream of returning to his family roots to serve as the CEO of Marin County starting April 29.
DISCUSSION/ANALYSIS:
Derek Johnson’s leadership, contributions, and continual strive for excellence will endure well beyond his tenure. In recognition of his leadership and service, 3CE will present Johnson with a commemorative plaque.
FISCAL IMPACT:
There is no fiscal impact.
CONCLUSION:
The Operations Board recognizes Derek Johnson for his dedicated leadership and service to 3CE and wishes him continued meaningful public service and success in Marin County.