Central Coast Community Energy (3CE) Operations Board
May 8, 2024

Operations Board of Directors
May 8, 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, Suite 108
Santa Barbara, CA 93101
Public may participate through ZOOM. For ZOOM participation please join by computer audio at:
https://us02web.zoom.us/j/83507087702
Or join by phone:
+1 669 900 6833 or +1 669 219 2599
Enter this Webinar ID Number: 835 0708 7702 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.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.

CONSENT CALENDAR

1. Approve Minutes from the April 10, 2024 Meeting of the Operations Board of Directors

2. FY 2023-24 Energy Programs Update

3. Regulatory Update

4. Financial report for the period of October 1, 2023, through March 31, 2024

5. Approve Second Restated Legal Services Agreement with Meyers Nave, P.C., for specialized legal services, retroactive to October 1, 2023 and continuing through the end of the engagement and adding $900,000 for a revised total not-to-exceed amount of
$1,109,748.00

REGULAR AGENDA

6. Community Advisory Council Report

7. CEO Report
a. Staffing Update
b. 2024 Request for Offers for Clean Energy and Storage c. 3CE Owned and Operated EV Charging
d. CalCCA Conference highlights affordability issues and emerging technology e. Enrollment of Atascadero and the County of San Luis Obispo

8. Consider supporting 3CE's proposed behind-the-meter residential battery rebate program and recommending Policy Board's support.

9. Consider approving amendment No. 1 to the Standard Services Agreement with Optony, Inc. to add three (3) additional years for a term ending September 30, 2027 and $2,052,675.00 for a total not-to-exceed amount of $2,502,675.00
to expand Member Agency fleet electrification services

10. Consider approving an agreement with Sacramento Municipal Utility District (SMUD) in an amount not to exceed $916,041.00 with an initial delivery term of three (3) years; and (2) execute an agreement with Salesforce in an amount not-to-exceed $183,192.45
with an initial delivery term of three (3) years; and (4) and authorize the CEO to execute both agreements.

11. Report on the efforts for Setting Rates Beginning Fiscal Year 2024-25

12. FY 2023-24 Mid-Year Budget Forecast
Board member comments and reports
Adjournment
Operations Board of Directors
April 10, 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 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

MINUTES
The meeting was called to order at 10:34 AM with 16 members attending in 6 locations and a quorum established.

Directors Present:
3CE Headquarters: Espinosa, Guertin, Perrault, Pia, Reynolds, County of Santa Cruz: Huffaker, Serino, Vice Chair Goldstein City of Paso Robles: Lewis
City of San Luis Obispo: Campbell, Downing, Chair Johnson City of Santa Maria: Posada, Wolfe
County of Santa Barbara: Miyasato, Ramirez
Directors Absent: Chiulos (arrived at 10:42am HQ), Hunter, Mendez (arrived at 10:39am HQ) The Chair moved Item 6 to the top of the agenda.

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 Johnson appoint an ad hoc nominating committee.

The Chair opened public comment period.

No public comments received.

The Chair closed public comment period. Page 3 of 134
MOTION: Moved by Chair Johnson, seconded by Espinosa to appoint Jaime Goldstein as Chair and Mona Miyasato as Vice Chair to serve through December 2024.

ACTION: The Motion Carried with a roll call vote: 17/0/2 AYES: Campbell, Downing, Espinosa, Guertin, Huffaker, Lewis, Mendez, Miyasato (left at 10:40am), Serino, Perrault, Pia, Posada, Ramirez , Reynolds, Wolfe, Vice Chair Goldstein, Chair Johnson NOES: None
ABSENT: Chiulos, Hunter

CONSENT CALENDAR
MOTION: Moved by Director Espinosa, seconded by Vice Chair Goldstein to approve the Consent Calendar.

ACTION: The Motion Carried with a roll call vote: 18/0/1/1 AYES: Campbell, Chiulos, Downing, Espinosa, Guertin, Huffaker, Lewis, Mendez, Armas (arrived at 10:40am Santa Barbara), Serino, Perrault (items 2-4), Pia, Posada, Ramirez, Reynolds, Wolfe, Vice Chair Goldstein, Chair Johnson NOES: None
ABSENT: Hunter
ABSTAIN: Perrault (item 1)
The Chair opened the public comment period for the consent calendar and items not listed on the agenda.

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

1. Approved minutes from the March 13, 2024 meeting of the Operations Board of Directors

2. Received Update on FY 2023-24 Energy Programs

3. Received Regulatory Update

4. Received a financial report for the period October 1, 2023, through February 29, 2024

REGULAR AGENDA

1. CEO Report
a. Power Supply Update
b. Electricity Market Update
c. Provider of Last Resort (POLR) Update

The Chair opened the public comment period.

No public comments received.

The Chair closed public comment period.

ACTION: Discussion Item; no action required

7. Recognition of Derek Johnson for his dedicated leadership and service to Central Coast Community Energy The Chair opened the public comment period.

No public comments received.

The Chair closed public comment period.

ACTION: Discussion Item; no action required
Board member reports and comments
Adjourned at 11:00 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: FY 2023-24 Energy Programs Update
DATE: May 8, 2024
RECOMMENDATION:

This memorandum provides 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 updates report program performance metrics, including equipment incentivized, housing units electrified, dollars spent, 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 work reduce GHG emissions throughout the 3CE service area and support local economies by providing the community and Member Agencies with funding and services to accelerate regional electrification, including enhanced incentives for underserved customers.

ATTACHMENT(S):

1. Update on 3CE Community Energy Programs

2. Update on 3CE Member Agency Services

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 Member Agency staff, answering technical questions, meeting participation, 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.

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 approved 1121 applications and has distributed over $1.7 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.

Figure 2 (above): Electrify Your Ride Program Funds distributed by measure type in FY 2023-

24. 20%
2%
34%
25%
19%
FY 2023-24 EYR FUNDS DISTRIBUTED BY COUNTY
SUM OF REBATES = $1,727,925
Monterey County
San Benito County
San Luis Obispo County
Santa Barbara County
Santa Cruz County
61%
30%
9%
FY 2023-24 EYR FUNDS DISTRIBUTED BY MEASURE
SUM OF REBATES = $1,727,925
Battery EV
EV Readiness
Level 2 EV Charger

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.

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 13%
24%
63%
FY 2023-24 EYR FUNDS
% Income Qualified Incentives Distributed
Income Qualified - Tier 1
Income Qualified - Tier 2
N/A

Santa Barbara counties. Payments for an electric school bus charger in Los Olivos and an electric bus rebate in Orcutt have also been made, totaling $204,013.00 USD.

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 $1.1 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 65 Heat Pump HVAC and 26 Heat Pump Water Heater projects totaling $210,500 dollars in distributed incentives. This fiscal year, projects have been completed in Monterey, San Luis Obispo, Santa Barbara, and Santa Cruz Counties. The program has also reserved more than $1 million for projects, including multi-family residential, that are awaiting completion.

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 $432,500 to a total of 173 all-electric, affordable, multifamily housing units in Santa Cruz, San Luis Obispo and Monterey counties. Additionally, 3CE incentivized seven all-electric single family, ADU and Fire Rebuild projects totaling $42,000.

Thus far in FY 2023-24, 3CE has distributed $474,500 via the New Construction Electrification Program.

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 distributed incentives for 11 projects, totaling $211,042.00 USD. Completed projects by county are described in Table 1 below.

County
Number of Tier
1 Applications
Number of
Tier 2
Applications
Total
Monterey County 3 2 5
Santa Cruz County 4 0 4
San Benito County 1 0 1
SLO County 0 0 0

Santa Barbara
County
0 1 1
Total: 8 3 11
Table 1: Agricultural Electrification projects paid out during FY 2023-24.

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: Regulatory Update
DATE: May 8, 2024
RECOMMENDATION:

This memorandum provides a 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
 Integrated Resource Planning (IRP)
 Bioenergy Market Adjustment Tariff (BioMAT)
 Renewable Portfolio Standard (RPS)
 Preventing Disconnections
 Load Management Standards (LMS) and Real-Time Pricing  Energy Resources Recovery Account (ERRA) Compliance
 ERRA Forecast
CONCLUSION:

This is an informational item only.

ATTACHMENT(S):

1. Regulatory Update

Regulatory Update
May 8, 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 Integrated Resource Planning (IRP)...........................................................................................................................6 Bioenergy Market Adjustment Tariff (BioMAT) ....................................................................................................7 Renewables Portfolio Standard (RPS)........................................................................................................................7 Interconnections .................................................................................................................................................................8 Load Management Standards (LMS) and Real-Time Pricing............................................................................8 Energy Resources Recovery Account (ERRA) Compliance................................................................................9 Energy Resources Recovery Account (ERRA) Forecast......................................................................................9

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. Over the past year the CPUC has also sought to tie RA compliance to other, unrelated functions such as CCA expansion into new communities.

Status
The California Public Utilities Commission (CPUC) has launched a new initiative to enhance the Slice-of-Day (SOD) framework for the Resource Adequacy (RA) compliance period of 2025. This 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 active in 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 postponement of the SOD framework's launch to 2026 to ensure its smooth implementation.

Next Steps
A PD on RA reform and party proposals, including CalCCA’s hourly load obligation trading proposal, is expected by May 2024. In addition, 3CE staff is currently working with CalCCA to shape proposals on the Central Procurement Entity (CPE) framework and coordination between the RA and IRP proceedings, due on May 13, 2024.

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. This role has historically 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 the fund CCAs must post as insurance called the Financial Security Requirement (FSR).

Status
At its April 18 Voting Meeting, the CPUC adopted the POLR Proposed Decision (PD), which incorporated several revisions put forth by CalCCA in opening and reply briefs. As a result of the CPUC’s adoption of the recent POLR PD, the minimum FSR that 3CE is required to post for SCE will remain at $147k for SCE and will increase for PG&E from $147k to $1.71M. The increase will not have a significant financial impact to 3CE. These revisions include reducing Resource Adequacy (RA) costs in the FSR by accounting for returning Central Procurement Entity (CPE) RA allocations, providing CCAs with an addition 60 days to file the first FSR, and requiring CCAs to provide audited financial statements once a year instead of twice to align with existing statutory obligations for CCAs.

Next Steps
3CE Staff will work with CalCCA to resolve outstanding questions related to the adopted Decision and ensure full understanding of the changes to 3CE’s financial monitoring requirements. IOU tariffs implementing the Decision are due on July 22. A schedule for the next phase of the proceeding, which will address the process for non-IOU entities to become a Designated POLR, has not yet been issued.

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. The pro-rata method temporarily replaced the current IOU tariff rules, altering the payment process so that past-due bills are first credited to the IOU portion and then to the CCA portion, resulting in CCAs bearing disproportionate impacts from customer payment delays. These temporary measures were implemented in the context of the COVID-19 pandemic, when the IOUs were not disconnecting residential customers.

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. 3CE assisted CalCCA in drafting opening comments, filed on April 19, that advocate for permanently maintaining the pro-rata payment method to prevent CCAs from bearing a disproportionate financial risk and allow CCA customers to continue to benefit from CCA initiatives that help struggling customers rather than being returned to the IOU for nonpayment.

Next Steps
3CE staff will work with CalCCA to draft strong reply comments that support retaining the pro-rata repayment method. Reply comments are due May 3, 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 consider the implementation of AB 205's mandate for an income-graduated fixed charge (IGFC) by July 1, 2024. 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. PG&E has 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. In response to pilot implementation proposals, the CPUC issued a ruling seeking additional information on how frequently the IOUs should be able to modify the time-varying rates.

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. 3CE staff worked with CalCCA to shape opening comments filed on April 16 that support the PD’s directives for IOUs to integrate CCA feedback regarding customer communications before and during implementation of the IGFC and to request that the CPUC direct IOUs to include IGFC tier data in the regular customer data reports provided to CCAs to enable enhanced and consistent customer support.

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. Within the proceeding, 3CE staff will actively review and advocate for just treatment of PG&E’s rates, ensuring that they are only modified within forums that allow review like the ERRA and GRC cases. Regarding the IGFC, staff will continue to analyze the impacts of the PD on 3CE customers. The Commission plans to vote on the IGFC PD at its May 9, 2024 Business Meeting.

6 Integrated Resource Planning (IRP) – R.20-05-003
Issue
Integrated Resource Planning (IRP) is the CPUC’s greenhouse gas (GHG) reduction planning program. LSEs must submit IRPs every two years demonstrating that planned future procurement will produce GHG emissions below an assigned benchmark while contributing to a resource fleet that meets sector-wide GHG targets and maintains grid reliability. LSEs submitted their most recent IRPs in November 2022, and previous IRP cycles have produced the three procurement mandates 3CE and other LSEs must comply with.

Status
On April 18, the CPUC issued an Amended Scoping Memo stating its intent to address additional issues in the IRP proceeding, including implementation of Assembly Bill (AB) 1373 which allows the Commission to request that the Department of Water Resources (DWR) serve as a central procurement entity (CPE) for certain long-lead time resources, as well as development of a long term procurement framework entitled the Reliable and Clean Power Procurement Program (RCPPP) that would replace the CPUC’s current ad hoc mandate structure.

The Amended Scoping Memo also extends the deadline for individual LSE IRP filings by one year to November 1, 2025.

On April 26, 3CE submitted a supplemental Avice Letter (AL) to update the 2022 IRP narrative as requested by the CPUC. The updated narrative provides supplemental information on how 3CE ensures the resources procured in our 2022 IRP consider cost, risk and rate impacts. Additionally, the additional information highlights 3CE’s Cost-Based rate setting leading to increased rate consistency for 3CE customers.

Next Steps
Staff is awaiting the release of an ALJ Ruling, scheduled for mid-April, that will propose the CPUC’s approach to addressing the requirements of AB 1373 and will evaluate it once available to assess any impact to 3CE’s procurement autonomy. In addition, staff will continue to actively engage in this proceeding, conducting advocacy around the structure of the RCPPP to promote improved coordination between the RA and IRP programs.

7 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 still awaiting the issuance of a Resolution on the March 13 Tier 2 AL and CCA pro forma documents for participation in the BioMAT program and a scoping memo in the RPS proceeding to determine if further extension and review of the program will be considered. 3CE staff and other members of the joint BioMAT CCAs met with representatives of the Sierra Club to help generate stakeholder support for extension of the BioMAT program. 3CE staff is also working with Accion to provide input on the development of 3CE’s BioMAT web portal, developing tools and resources for potential BioMAT project applicants, and 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. The CPUC initiated 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.

Status
3CE is a party to the new proceeding and submitted joint CCA comments on March 4 requesting that expedited consideration of a 5-year extension to the BioMAT program, which is currently set to end on December 31, 2025, be included within the scope. 3CE staff is also actively working with CalCCA to address delays in the receipt of Renewable Energy Credits (RECs) under the Voluntary Allocation and Market Offer (VAMO) contracts with IOUs and ensure that regulators are aware of potential impacts of the delays to Power Source Disclosure and RPS compliance deadlines.

Next Steps
Staff is awaiting issuance of a Scoping Memo, anticipated for mid to late April. 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% renewable energy by 2030.

8 Interconnections – R.24-01-018
Issue
The California Energy Commission’s (CEC) 2023 Integrated Energy Policy Report (IEPR) identifies interconnection delays as a significant barrier to achieving California’s electrification and decarbonization goals.

Ongoing initiatives led by various entities are working to address this issue and streamline processes for connecting clean resources to the grid. One such effort is CAISO’s 2023 Interconnection Process Enhancements (IPE) initiative, focused on enhancing coordination of resource procurement, interconnection, and transmission planning to achieve state reliability and policy needs. In addition, the CPUC instituted a new rulemaking in January of 2024 to establish reasonable timelines for customers to receive new service connections and to create procedures for customers to report delays as part of implementing recent statutes.

Status
On March 28, the CPUC issued a scoping memo for its new OIR. Phase 1 of the proceeding will consider average and maximum energization time periods and improvements to current processes for customers to report energization delays, with a Proposed Decision (PD) scheduled for July. Additionally, CAISO released a final IPE proposal on March 29 that proposes significant modifications to its interconnections study process, including a new scoring criteria that weighs Load Serving Entity (LSE) interest in prospective projects. 3CE staff collaborated with CalCCA to submit comments on the Final Proposal on April 18 requesting additional time between the interconnection request submission window and the LSE score deadline to allow LSEs to fully evaluate interconnection requests before submitting interest forms. The Final Proposal will be presented at the CAISO Board of Governors Meeting in late May and then filed for approval at the FERC.

Next Steps
Distribution planning or implementation failures can delay new customer load interconnection, affecting CCA customers. 3CE will continue to monitor these initiatives, advocate for transparency and efficiency in interconnection and energization processes, and promote accelerated deployment and grid connection of clean energy resources.

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
3CE continues to follow its LMS Plan as adopted by the Policy Board on February 21. Accordingly, 3CE staff ensured that IOU partners had access to relevant information to enable the inclusion of Rate Identification Numbers (RINs) on customer billing statements before April 1, 2024, the milestone set forth in the LMS.

Next Steps
Staff is actively collaborating with stakeholders on development and design of a statewide tool for authorized rate data access by third parties for submission to the CEC by October 1, 2024.

9 Energy Resources Recovery Account (ERRA) Compliance – A.22-02-015; A.22-04-001; A.24-02- 012
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 April 5, the Joint CCAs filed a protest to PG&E’s 2023 ERRA case. To circumvent the inability to address RA as experienced in the 2022 ERRA case, the protest requested that a thorough review of PG&E’s RA practices be explicitly stated as in scope. PG&E responded to the protest stating that CalCCA’s request should be rejected as it has been in the previous Compliance case.

SCE Status
The 2022 SCE ERRA Compliance Case highlights two unresolved issues: (1) SCE's overcharge on franchise fees to departing load customers and (2) its attempt to recover CAISO penalty costs through customer rates. In opening briefs, the Joint CCAs are advocated for a refund of the over collected franchise fees and opposed the inclusion of CAISO penalties in rates. SCE’s response argued that CalCCA has the same burden of proof as SCE to prove the franchise fees were duplicative and that the error was fixed within the tariff, so the issue is irrelevant. SCE also argues that the CAISO fees are negligible and have minimal impact. However, these responses essentially transfer the consequences of SCE's errors onto customers. In Reply Briefs, the Joint CCAs will persist in advocating for customers to receive proper restitution.

Next Steps
Opening Briefs for the 2022 PG&E ERRA case are due June 19 and parties are awaiting a scoping ruling from the CPUC for the 2023 ERRA case. Reply Briefs for the SCE 2022 ERRA Case will be filed on April 29.

Energy Resources Recovery Account (ERRA) Forecast – A.23-05-012; A.23-06-001 Issue
ERRA forecast applications are filed annually by IOUs to look ahead at energy procurement-related revenue requirements, including the allocation of costs across Power Charge Indifference Adjustment (PCIA) vintages.

CCAs participate through CalCCA to ensure: (1) accuracy of forecast account balances, rates, and cost calculations; (2) proper attribution of PCIA vintage; (3) proposer attribution between bundled and unbundled customers; (4) appropriateness of IOU proposals within the context of an ERRA forecast proceeding.

Status
On April 2, 2024, an Assigned Commissioner’s Scoping Memo and Ruling consolidated the 2024 IOU ERRA Forecast cases for addressing outstanding issues related to IOU fixed generation costs. The consolidated proceeding will consider whether the Commission should modify its current definition of fixed generation costs,

10 which of those costs should be consistent across the IOUs, how to report on those fixed costs, and whether any other rules related to fixed costs should be adopted to fairly recover them and to achieve Commission Environmental and Social Justice goals. The ruling does not adopt the Joint CCA’s recommendation to include in the scope issues related to IOU vintaging of utility-owned generation assets nor issues related to banked Renewable Energy Credit (REC) treatment.

Next Steps
Intervenor testimony is due May 8, 2024.

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: Financial report for the period October 1, 2023, through March 31, 2024 DATE: May 8, 2024
RECOMMENDATION:

This memorandum provides a financial report for the period October 1, 2023, through March 31, 2024.

SUMMARY:

Over the course of six months ending March 31, 2024, operating revenues amounted to $249.0 million, and operating expenses totaled $207.3 million for a net operating income of $41.6 million. Non-operating revenue added $6.1 million to the total revenue, tallying a positive change in net position of $47.7 million.

Year-to-date operating revenue is $23.8 million lower than budget, primarily due to the seasonal fluctuations in revenues and expenditures and the lower-than-expected residential customer load.

However, operating revenue is expected to align with the budget as the fiscal year progresses into the summer months. Meanwhile, investment revenue exceeds the budget by $3.0 million, as staff actively manages in a favorable short-term interest rate environment. The Mid-Year Budget Forecast Report includes more information on the fiscal year outlook. The total revenue-to-budget variance is $20.8 million.

Year-to-date operating expenditures are higher than budget by $1.8 million. Energy costs were $9.7 million higher than budget. The variance is from resource adequacy (RA) capacity purchases and higher cost of energy. Non-energy operating costs were $7.9 million lower than budget due to less-than-planned costs for energy incentive programs, contracted services, and staff vacancies.

Net position at the end of March 31, 2024, totaled $289.6 million, a $47.7 million increase from the start of the fiscal year. The increase is attributed to growth in cash, prepaid expenses to suppliers, and the increased long-term asset purchase (San Luis Obispo satellite office).

Cash, cash equivalents, and short-term investments totaled $268.5 million, a $13.5 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 prepayment of RA capacity purchases.

FISCAL IMPACT:

There is no financial impact associated with receiving this report.

ATTACHMENT(S):

1. March 31, 2024 Financial Report

Compiled Financial Statements 1
Compiled Budgetary Comparison Schedule 6
Budget Variance Commentary 8
Financial Dashboard 9
Investment Summary 10
Accounts Receivable Aging Summary 11
Table of Contents
Financial Report
Fiscal Year to Date
as of March 31, 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 March 31, 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
April 22, 2024
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com

Current assets
Cash and cash equivalents - unrestricted $ 208,991,220
Accounts receivable, net of allowance 31,649,506
Accrued revenue 27,334,306
Other receivables 1,202,718
Loan receivable 188,951
Prepaid expenses 10,572,107
Deposits 18,172,227
Cash - restricted 294,000
Investments 59,486,056
Total current assets 357,891,091
Noncurrent assets
Deposits 23,182
Loan receivable 1,425,882
Lease asset, net of amortization 1,258,647
Land 898,658
Capital assets, net of depreciation and amortization 1,894,733 Total noncurrent assets 5,501,102
Total assets 363,392,193
Current liabilities
Accrued cost of electricity 37,407,546
Accounts payable 931,732
Other accrued liabilities 1,378,107
User taxes and energy surcharges due to other governments 1,863,408 Lease liability 312,662
Total current liabilities 41,893,455
Noncurrent liabilities
Security deposits - energy suppliers 30,931,720
Lease liability 1,007,514
Total noncurrent liabilities 31,939,234
Total liabilities 73,832,689
Net investment in capital assets 2,731,862
Restricted for security collateral 294,000
Unrestricted 286,533,642
Total net position $ 289,559,504

NET POSITION
As of March 31, 2024

STATEMENT OF NET POSITION

CENTRAL COAST COMMUNITY ENERGY
ASSETS

LIABILITIES

OPERATING REVENUES
Electricity sales, net 248,888,138$
Other income 58,340
Total operating revenues 248,946,478

OPERATING EXPENSES
Cost of electricity 193,881,912
Contract services 5,411,914
Staff compensation 3,656,745
Other operating expenses 799,291
Program incentives 3,310,357
Depreciation and amortization 284,675
Total operating expenses 207,344,894
Operating income (loss) 41,601,584

NONOPERATING REVENUES (EXPENSES)
Interest and investment returns 6,124,197
Interest and financing costs (37,602)
Nonoperating revenues (expenses) 6,086,595
CHANGE IN NET POSITION 47,688,179
Net position at beginning of period 241,871,325
Net position at end of period $ 289,559,504
Six Months Ended March 31, 2024

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CENTRAL COAST COMMUNITY ENERGY

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 252,075,475$
Other operating receipts 58,340
Receipts of deposits and collateral 9,040,228
Payments to suppliers for electricity (212,185,543)
Payments of deposits and collateral (20,043,921)
Payments for other goods and services (7,162,626)
Payments for program incentives (3,997,165)
Payments of staff compensation (3,592,678)
Payments of taxes and energy surcharges to other governments (4,434,085) Net cash provided by operating activities 9,758,025

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 (178,855)
Payments to acquire capital assets (2,348,660)
Net cash provided (used) by capital and related financing activities (2,527,515)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 5,389,793
Proceeds from investment sales 70,495,114
Principal payments received of loan receivable 93,165
Purchase of investments (69,951,287)
Net cash provided (used) by investing activities 6,026,785 Net change in cash and cash equivalents 13,251,351
Cash and cash equivalents at beginning of year 196,033,869 Cash and cash equivalents at end of period $ 209,285,220 Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted $ 208,991,220
Cash - restricted 294,000
Cash and cash equivalents $ 209,285,220
Six Months Ended March 31, 2024

STATEMENT OF CASH FLOWS

CENTRAL COAST COMMUNITY ENERGY

Operating income (loss) $ 41,601,584
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation and amortization expense 284,675
(Increase) decrease in:

Accounts receivable, net of allowance 1,109,769
Accrued revenue (2,469,200)
Other receivables 3,020,933
Prepaid expenses (10,191,896)
Deposits (11,678,133)
Increase (decrease) in:

Accrued cost of electricity (11,514,930)
Accounts payable (1,825,204)
Other accrued liabilities 636,306
User taxes and energy surcharges due to other governments 109,681 Security deposits - energy suppliers 674,440
Net cash provided by operating activities 9,758,025$

CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
Six Months Ended March 31, 2024

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY OPERATING ACTIVITIES

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 periods ended March 31, 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
April 22, 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 $ 41,145,300 $ 47,289,000 $ (6,143,700) -13% $ 252,244,141 $ 276,394,000 $ (24,149,859) 91% $ 563,933,447 $ 311,689,306 Uncollectible accounts (547,232) (625,000) 77,768 -12% (3,356,003) (3,750,000) 393,997 89% (7,500,000) (4,143,997) Electricity sales, net 40,598,068 46,664,000 (6,065,932) -13% 248,888,138 272,644,000 (23,755,862) 91% 556,433,447 307,545,309 Investment and miscellaneous income 1,033,908 533,000 500,908 94% 6,182,537 3,200,000 2,982,537 193% 6,400,000 217,463 Total revenues and other sources 41,631,976 47,197,000 (5,565,024) -12% 255,070,675 275,844,000 (20,773,325) 92% 562,833,447 307,762,772 EXPENDITURES AND OTHER USESCurrent Expenditures
Cost of energy 33,641,355 37,997,000 4,355,645 11% 194,125,425 184,485,000 9,640,425 105% 520,297,514 326,172,089 Salaries and benefits 609,168 795,000 185,832 23% 3,656,745 4,769,000 (1,112,255) 77% 9,537,076 5,880,331 Services and supplies 1,458,510 2,750,000 1,291,490 47% 9,747,525 16,499,000 (6,751,475) 59% 32,998,857 23,251,332 Total current expenditures 35,709,033 41,542,000 5,832,967 14% 207,529,695 205,753,000 1,776,695 101% 562,833,447 355,303,752 Surplus (deficit) $ 5,922,943 $ 5,655,000 $ 267,943 5% 47,540,980 $ $ 70,091,000 $ (22,550,020) -32% $ (47,540,980) - $ Annual

CENTRAL COAST COMMUNITY ENERGY

BUDGETARY COMPARISON SCHEDULE
Current Month and Six Months Ended March 31, 2024
Current Month
Variance fav. (unfav.)
Year-To-Date
Variance fav. (unfav.)

Budget Item YTD Variance Comment
Electric Sales Revenue (8.7%) Sales revenue includes revenues actually billed to customers as well as estimated customer usage during the reporting period that is not yet billed.

Cost of Energy 5.2% Variances in this category are typically due to (1) timing difference between projected and actual REC deliveries, (2) variance from actual to anticipated market prices, and (3) variance from actual to expected volume used by customers. 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 (62.0%) This category includes accounting, IT, technical and other consultants.

Legal Costs (26.9%) This category includes outside legal costs for regulatory and energy procurement needs.

Marketing and customer enrollment (47.8%) Variance is mostly due to the lower than anticipated costs of recent customer enrollments.

Data Management Services (0.3%) These fees non-discretionary and are charged on a per customer basis.

Utility Service Fees 2.0% These are PG&E and SCE fees charged on a per customer basis.

Other General & Administrative (47.5%) This category includes occupancy costs, industry membership dues, and other general and administrative costs.

Energy and Related Programs (52.2%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items

CENTRAL COAST COMMUNITY ENERGY
October 1, 2023 through March 31, 2024
8

$7.0
$8.7
Act
Bud
$54.8
$88.2
$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
$248.9
$272.6
$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) 416 393 409 406 361 366
Budget 452 459 444 420 402 416 419 383 386 405 423 427
0 50
100
150
200
250
300
350
400
450
500

CUSTOMERS

SALES VOLUME
366 GWh

STD MARGIN
$8.7M (19%)
Δ in NET ASSETS
$6.0M

REVENUE
$41.6M
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: March 2024
Margin %

CUSTOMERS
456,000
ACTIVE
March revenue of $41.6M accounts for 466
GWh in net retail consumption, 50 GWh
below budget.

YTD Electricity revenue is $249M compared
to budget of $273M. YTD Direct Margin
(defined as Electricity Sales less Cost of
Energy) of $54.8M is below budget by
$33.4M.

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

The charts below display cumulative
revenue and margin $ vs budget.
42%
49%
9%
40%
47%
13%
Res
Com
Ag
YTD Month
46%
46%
8%
44%
45%
11%
Res
Com
Ag
YTD Month
Revenue $41.6
C.O.E. $33.6
OpEx $2.0
Net Income $6.0

17.2%

18.6%
Act
Bud
Margin $
10 Page 38 of 134
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 $ 94,499,949 Gains/Losses/Interest $ 2,011,727 $ 382,898 328,802.57 339,891.42 331,259.57 297,736.65 331,138.61 Average APY 3.62% 3.61% 4.08% 4.01% 3.82% 4.20%INVESTMENTSRiver City Bank - Treasury-indexed productsFunds Invested - Average Balance $ 40,000,000 $ 50,000,000 $ 40,000,000 $ 40,000,000 $ 30,000,000 $ 30,000,000 Gains/Losses/Interest $ 1,143,481 178,385.54 213,485.85 236,035.13 205,868.28 193,103.80 116,602.81 Average APY 5.35% 5.12% 7.08% 6.18% 7.72% 4.66%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 $ 136,685,421 Gains/Losses/Interest $ 2,756,607 375,490.63 434,211.19 478,991.16 480,276.43 442,147.15 545,490.84 Average APY 5.05% 5.50% 5.21% 4.98% 3.90% 4.79%

CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2023 through March 31, 2024
10

Current 0 - 30 Days 31 - 60 Days 61 - 90 Days > 91 Days A/R Balance $ 18,211,266 $ 10,873,783 $ 2,631,399 $ 680,034 $ (746,976) $ 31,649,506

CENTRAL COAST COMMUNITY ENERGY
Summary of Accounts Receivable, Net of Bad Debt Allowance As of March 31, 2024
11 Page 40 of 134
Staff Report Item 5
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: Approve Second Restated Legal Services Agreement with Meyers Nave, P.C., for specialized legal services, retroactive to October 1, 2023 and continuing through the end of the engagement and adding $900,000 for a revised total not-to-exceed amount of $1,109,748.00
DATE: May 8, 2024
RECOMMENDATION:

This recommends the Operations Board approve a Second Restated Legal Services Agreement with Meyers Nave, P.C., for specialized legal services, retroactive to October 1, 2023 and continuing through the end of the engagement and adding $900,000 for a revised total not-to-exceed amount of $1,109,748.00.

BACKGROUND:

In 2022, 3CE engaged, jointly with Silicon Valley Clean Energy (SVCE), Meyers Nave, P.C., to support the joint CCAs in the Santa Clara action titled: CCCE et al. v. Big Beau Solar, LLC.

The engagement was amended in March 2023 to anticipate increased legal support to prepare for trial.

The restated engagement increased the not-to-exceed amount from $100,000 per fiscal year to $400,000 per fiscal year but failed to extend the term of the agreement beyond September 2023. 3CE incurred $210,772.91 under the earlier engagement agreement, which terminated through oversight in September 2023. Legal services billed from October 1, 2023, and through April 1, 2024, total $345,447.52.

The trial in the above-entitled action is currently set for July 22, 2024.

DISCUSSION/ANALYSIS:

Meyers Nave continues to jointly represent both 3CE and SVCE.

The proposed second restated legal services agreement eliminates the previous per fiscal year spending authorization in favor of the proposed $1,109,748.00 not-to-exceed. The additional $900,000 approval clarifies Board’s intention to extend representation beyond October 1, 2023 (and cover those amounts properly billed after October 1, 2023) as well as additional amounts incurred for legal services through trail and post-trial briefings.

FISCAL IMPACT:

There is no fiscal impact associated with this request. The requested additional $900,000 is within the FY 23-24 Budget and will be planned for future budget approvals as appropriate.

CONCLUSION:

The Board’s approval of the proposed Second Restated Legal Services Agreement enables Meyers Nave to further support 3CE in the Big Beau litigation.

ATTACHMENT(S):

1. Meyers Nave Second Restated Legal Services Agreement

1999 Harrison Street, 9th Floor
Oakland, California 94612
tel (510) 808-2000
fax (510) 444-1108
www.meyersnave.com
Deborah J. Fox
[email protected]

A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO April 30, 2024
Via Electronic Mail
Charles McKee, General Counsel
Robert M. Shaw, Chief Executive Officer
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, California 93940
E-Mail: [email protected]
Re: Second Restated Legal Services Agreement – BigBeau
Dear Messrs. McKee and Shaw:

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

This letter provides our Second Restated Legal Services Agreement concerning the legal services we will provide and our fee arrangements for those services. This Second Restated Legal Services Agreement shall cover the fees incurred in the above matters retroactive from October 1, 2023 and continuing through the life of the contract dispute action as identified in the Scope of Engagement below. Please read this entire agreement before signing and returning it to us.

1. Scope of Engagement. We will provide the legal services reasonably required to represent and advise you in connection with 3ce’s contract dispute with BigBeau Solar, LLC (“BigBeau”) regarding a certain power purchasing agreement (“PPA”), and the litigation resulting therefrom pending in Santa Clara County Superior Court, Case No. 22CV398156.

Our work is limited to such services. We will also provide legal services for additional matters that you request of us, provided we agree to perform that additional work. A letter confirming such additional work shall bring such work within the scope of this agreement.

2. Fees and Personnel. As compensation for our services, our fees will be based on our current standard billing rate for the personnel performing services under this agreement at the time such services are rendered. Our standard billing rates for attorneys and paralegals are attached as Attachment 1. The total amount of fees and costs incurred for legal services under this Agreement shall not exceed $900,000 for the period of October 1, 2023 continuing through the life of the action (the “NTE Cap”) without the written approval of Client, it being

Charles McKee, General Counsel
Robert M. Shaw, CEO
April 30, 2024

A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO understood by Client that the NTE Cap does not necessarily represent the total fees to complete the BigBeau matter provided for under this Agreement because of the nature of the project.

Principal Eric Firstman will be in charge of representing your interests. Of Counsels Ian Johnson, Matthew Nazareth, and Harry Moren will be assisting in this matter along with paralegals Brittany Fortner and Shao Chen. And, as needed principal Deborah Fox. If other attorneys and/or paralegals are assigned to work on your matter, the then current hourly rates of those individuals will be utilized. This agreement retains the legal services of our law firm and not of a particular attorney. Hourly rates are subject to reasonable change, usually at the beginning of each year. Any such change will be made only after providing 30 days advance written notice to 3ce.

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

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

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

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

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

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

Charles McKee, General Counsel
Robert M. Shaw, CEO
April 30, 2024

A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO

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

8. No Guarantee of Outcome. Any comments made by us about the potential outcome of this matter are expressions of opinion only and are not guarantees or promises about any outcome or results.

9. Dispute Resolution. In the event you become dissatisfied with any aspect of our relationship, we encourage you to bring such concerns to our attention immediately. If we are unable to resolve any dispute, either arising out of or in connection with this Agreement or relating to the services performed by our firm or any of its attorneys, to our mutual satisfaction, our firm will first comply with any mandatory dispute resolution procedures that may apply to any such dispute. This agreement shall be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws.

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

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

Thus, if in the course of our representation you provide us with original documents that you consider important or desire to keep, we recommend that, first, you inform us in writing that

Charles McKee, General Counsel
Robert M. Shaw, CEO
April 30, 2024

A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO the documents are important. And second, we ask that you take immediate possession of such documents upon the conclusion of our representation. If we do not hear from you, we will generally retain only the documents and materials pertaining to this matter which we designate as vital for a period of seven (7) years. After which such documents will be destroyed unless, before that time, you notify us in writing that you wish to take possession of them.

11. Entire Agreement; Full Understanding; Modifications in Writing. This letter contains our entire agreement about our representation. Any modifications or additions to this letter agreement must be made in writing.

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

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

In view of the fact that 3ce is a Public Entity, this letter confirms that the services which we are rendering to you are limited in scope and for the benefit of 3ce, only. Meyers Nave performs a variety of professional services for its clients and it is possible that we will represent public agency clients which are adverse to you on other matters. To avoid potential problems, you agree that you expressly waive any actual or potential conflicts that might arise from such representation, that you will not attempt to disqualify Meyers Nave on such matters, and that our firm is free to represent its clients on such matters.

By signing this letter and returning it to us, you acknowledge that we have discussed these matters and you confirm that 3ce, does not object to our representation of clients on matters where their legal, governmental or political objectives and/or positions may be different from or adverse to those of 3ce, and that 3ce, waives any conflict of interests with respect to our representation of such clients with differing legal, governmental or political interests. You further confirm that 3ce, will not assert any conflict of interest concerning such representation or attempt to disqualify this firm from representing such clients notwithstanding such adversity. While you would certainly be free to terminate our relationship, you agree that this firm nonetheless would be free to represent such clients even

Charles McKee, General Counsel
Robert M. Shaw, CEO
April 30, 2024

A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO on those matters which you consider adverse, and that you waive any conflict of interest in connection therewith.

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

14. Disclosure and Conflict Waiver for Representation of Silicon Valley Clean Energy Authority.

Meyers Nave has also been retained by Silicon Valley Clean Energy Authority (“SVCEA”) in connection with its dispute with BigBeau based on a nearly identical contract dispute and pending litigation against BigBeau. This representation is neither adverse to 3ce nor does it pose a significant risk of materially limiting this Firm’s representation of 3ce. Because both representations involve entities who may be witnesses to relevant events and contracts in this matter, both representations require the following disclosure and discussion pursuant to California Rules of Professional Conduct, Rule 1.7(c).

We do not view this representation as presenting a conflict of interest or having an adverse effect or limitation on the Firm’s proposed representation of 3ce, based on the following facts we understand from the documents supplied and from our conversations:
 The power purchasing agreements (“PPA”) signed by 3ce and SVCEA are substantially identical other than the purchasing party and the energy amounts.  Each PPA, as signed, has only two parties: BigBeau and the purchasing entity.  The PPAs, as signed by 3ce and SVCEA, are separate stand-alone contracts; they do not refer to the other; nor do they create or anticipate legal obligations between purchasing entities.
 3ce and SVCEA are the sole customers of power from Big Beau.  3ce and SVCEA now have a shared, common interest in retaining and enforcing their rights against Big Beau.
 Any settlement or resolution of the pending dispute between 3ce and BigBeau is not anticipated to impact the claims or defenses between SVCEA and BigBeau or vice versa. (SVCEA will make the same representation.)  Any settlement or resolution of the pending dispute between 3ce and BigBeau is not anticipated to have any regulatory impact on SVCEA or vice versa. (SVCEA will make the same representation.)

Charles McKee, General Counsel
Robert M. Shaw, CEO
April 30, 2024

A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO  3ce and SVCEA currently have no affirmative claims against the other regarding the BigBeau Project or regarding any other matter nor are any anticipated based on the issues at play with BigBeau. (This is also subject to confirmation by SVCEA.)
In addition, although not required to be expressly disclosed by the Rules of Profession Conduct, the Firm makes the following disclosure in an abundance of caution. If BigBeau offers terms of settlement or resolution to 3ce that would be in any way adverse to SVCEA’s interests, the Firm will not advise 3ce as to those potential terms and would recommend 3ce seek and consult separate counsel. Likewise, the Firm will do the same if BigBeau offers terms of settlement or resolution to SVCEA that would be in any way adverse to 3ce’s interests.

Further, although not required by the Rules of Professional Conduct, the Firm advises that it will not take on representation of either 3ce or SVCEA in future disputes or litigation wherein either Party is taking a position with respect to a substantially similar PPA that would be contrary to the Parties’ current position as to the PPAs with BigBeau. This limitation would not apply to other power purchasing agreements that have materially different terms than the PPAs at issue here.

Finally, any work done by the Firm on this matter that is for the benefit of both 3ce and SVCEA will be presumptively billed at an even 50/50 split, subject to any further agreement between the parties. The budget concurrenlty provided to 3CE reflects 3CE’s portion only.

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

15. Settlement Covenants.

By accepting this agreement, 3ce agrees to the following settlement covenants, which are identical to the settlement covenants that SVCEA will agree to in its engagement with the Firm. Acceptance of these covenants by both 3ce and SVCEA are conditions precedent to this Agreement and to the Firm’s agreement with SVCEA. Notwithstanding anything to the contrary in this agreement, the covenant in paragraph d is not binding upon the termination of this Agreement.
3ce covenants that it will use its best efforts to prevent any settlement or resolution of its pending dispute with Big Beau from being used by BigBeau in a manner adverse to SVCEA’s interests. Such best efforts specifically include, at a minimum:
a. 3ce will obtain a confidentiality provision in any resulting settlement agreement to the extent legally available.

Charles McKee, General Counsel
Robert M. Shaw, CEO
April 30, 2024

A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO b. 3ce will not agree to any litigation cooperation with BigBeau in its dispute with SVCEA other than responding to legal process as required by law. c. A settlement term that indicates that any agreed-upon settlement terms for price of power may not be used as evidence of market rates and reflect only the intangibles of that dispute and/or litigation with Big Beau d. No settlement term that will impair the terms of SVCEA’s PPA with BigBeau.

16. Disclosure of Work for Bloom Energy and the Counties of San Benito, San Luis Obispo and Santa Barbara.

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

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

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

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

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

To avoid the potential for any possible conflict of interest to arise in the future as to its representation of either 3ce, Bloom Energy or the Counties, Firm intends to conduct itself on these terms:
a. The scope ofthe engagement for 3ce will not involve any issues related to the matters about which we are advising Bloom Energy and the Counties. We have not represented Bloom Energy and the Counties on any matter related to this engagement, and the proposed representation appears entirely unrelated to any matter for which we represent Bloom Energy and the Counties.

Charles McKee, General Counsel
Robert M. Shaw, CEO
April 30, 2024

A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO b. Firm will not disclose to Bloom Energy and the Counties any confidential information Firm has acquired or acquires at any time in the present or future as a result of Firm's attorney-client relationship with 3ce. Firm will likewise not disclose to 3ce any confidential information Firm acquires as a result of Firm's attorney-client relationship with Bloom Energy and the Counties.
c. Firm recognizes that Firm is obligated to exercise independent professional judgment on behalf of 3ce in any matter in which Firm represents 3ce, unaffected to any extent by Firm's then current or potential future relationships with Bloom Energy and the Counties. Firm has examined its relationship with Bloom Energy and the Counties, and has concluded that it will not affect Firm's ability to fully represent 3ce as to the Scope of Service covered by this Agreement.

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

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

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

Very truly yours,
Deborah J. Fox
DJF:KG
Enclosures
c: Conflicts Department
Billing Department

Charles McKee, General Counsel
Robert M. Shaw, CEO
April 30, 2024

A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO These terms are accepted and agreed to as of the date of this letter.

By:

Central Coast Community Energy (3ce)
Robert M. Shaw
Chief Executive Officer
5715744.1

Charles McKee, General Counsel
Robert M. Shaw, CEO
April 30, 2024

A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO

MEYERS NAVE
2021 Billing Rate Schedule

TITLE RATE
Senior Principal $575
Of Counsel $475
Senior Associate $365
Associate $325
Senior Paralegal $200
Litigation Support Specialist $225

Charles McKee, General Counsel
Robert M. Shaw, CEO
April 30, 2024

A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO ATTACHMENT 2

MEYERS NAVE

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

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

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

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

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

Our invoices contain a brief narrative description of the work performed; if requested, the initials of the attorney who performed the work will appear on the statement. The invoice will include a line item reflecting in-house administrative costs. The firm’s in-house administrative costs include duplicating, facsimile charges, telephone charges, E-mail, postage, mileage and other administrative expenses.

Charles McKee, General Counsel
Robert M. Shaw, CEO
April 30, 2024

A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO The firm will be reimbursed for all outside services incurred in the course of providing legal services to our client(s). Outside services will include, but are not limited to, all third-party expenses, delivery charges, travel expenses, outside research services, filing fees, expert witness and expert consultant fees.

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

Late Payments. Statements for services are payable upon presentation and, in all events, within thirty (30) days after receipt. Occasionally a client has difficulty in making timely payments. In the unlikely event we are required to institute legal proceedings to collect fees and costs, the prevailing party will be entitled to reasonable attorneys’ fees and other costs of collection.
5252357.1

Community Advisory Council
Wednesday, April 3, 2024
4:00 PM
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940
City of Santa Maria
City Hall
110 East Cook Street, Conference
Room Santa Maria, CA 93454
County of Santa Barbara
105 E. Anapamu Street
Fourth Floor
Santa Barbara, CA 93101

MINUTES
The meeting was called to order at 4:08PM with 8 members attending in 2 locations and a quorum established.

Members Present: 3CE Headquarters: Bauman, Johnson, Norton, Stedman, Tuitavuki, Chair Capron City of Santa Maria: Hughes, McClish
County of Santa Barbara: Allen (Arrived at 4:11PM)
Members Absent: Byron, Damhorst, Osmer, Soto, Vice Chair Davis The chair opened the public comment period on the consent calendar and items not listed on the agenda.

No public comment received.

The Chair closed public comment.

1. Approved Minutes from the February 7, 2024 Meeting of the Community Advisory Council MOTION: Moved by Member Bauman, seconded by Member Stedman to approve minutes as submitted .

ACTION: The motion carried with a roll call vote: 9/0/5 AYES: Allen, Bauman, Hughes, Johnson, McClish, Norton, Stedman, Tuitavuki, Chair Capron NOES: None
ABSENT: Byron, Damhorst, Osmer, Soto, Vice Chair Davis

2. Received CEO Report
a. Staffing Report
b. California Climate Credit
c. Expansion of System Reliability Pilots: AgFit

d. Provider of Last Resort: Financial Security Reserve
e. Resource Adequacy: Reform Efforts
f. 3CE Medium and Heavy-duty Zero Emission Vehicle Blueprint The Chair opened public comment.

No public comment received.

Chair closed public comment period.

ACTION: Discussion Item; No Action Required
Chair moved up Item 5

5. Presentation on the Customer Perspective on Demand Response The Chair opened the public comment period.

The following individual(s) addressed the Council.
 Peter De Gregorio
The Chair closed public comment.

ACTION: Discussion Item; No Action Required
Chair moved up item 4

4. Presentation from the City of San Luis Obispo on its Reach code adoption and implementation The Chair opened the public comment period.

No public comment received.

The Chair closed public comment.

ACTION: Discussion Item; No Action Required

3. Presentation from Green Light Labs on their new EV purchasing tool, Electifyze The Chair opened the public comment period.

No public comment received.

The Chair closed public comment.

ACTION: Discussion Item; No Action Required
Recessed at 5:58pm
Reconvened at 6:17pm

6. Received an update and provide input on the implementation of the Underserved Communities Outreach and Engagement Plan
The Chair opened the public comment period.

No public comment received.

The Chair closed public comment.

ACTION: Discussion Item; No Action Required
ACTION: Discussion Item; No Action Required

7. Supports the Policy Board's acceptance of the Fiscal Year 2022-23 Energy Programs Portfolio Evaluation The Chair opened the public comment period.

No public comment received.

The Chair closed public comment.

MOTION: Moved by Member Norton, seconded by Member Tuitavuki to approve.

ACTION: The motion carried with a roll call vote: 9/0/5 AYES: Allen, Bauman, Hughes, Johnson, McClish, Norton, Stedman, Tuitavuki, Chair Capron NOES: None
ABSENT: Byron, Damhorst Osmer, Soto, Vice Chair Davis

8. Received an Update on FY 2023-24 Energy Programs
The Chair opened the public comment period.

No public comment received.

The Chair closed public comment.

ACTION: Discussion Item; No Action Required
Adjourned at 7:06pm.

Staff Report Item 7
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: CEO Report (Discussion Item)
DATE: May 8, 2024

STAFFING UPDATE
Ana Capstick – Energy Programs Analyst Ana graduated from Santa Clara University and majored in Environmental Science and Public Health. Before joining 3CE Ana worked with PG&E as a Program Manager. Ana is looking forward to collaborating with the rest of the 3CE team.

Wade Grant- Data Analyst For the previous ten years, Wade worked in higher education as a researcher and data analyst. His focus was to provide insight into student success. Wade developed numerous business intelligence data dashboards to facilitate campus-wide data distribution. Wade has managed numerous projects simultaneously, oversaw external vendors, and presented to the Board of Trustees regularly. Wade is a proud veteran of the United States Marine Corps. 2024 REQUEST FOR OFFERS FOR CLEAN ENERGY AND STORAGE
3CE launched its latest RFO for new renewable generation and/or storage projects on April 23. The Deadline to submit is May 6, 2024.

Project shortlisting is expected in mid-summer and negotiations are anticipated to be completed toward the end of the year.
3CE OWNED AND OPERATED EV CHARGING
Staff continues to evaluate pilot opportunities for 3CE (or a partnership between 3CE and a Member Agency) to construct, own, operate, and maintain EV charging stations in the 3CE territory. The lack of adequate EV infrastructure in our region has been well-documented in multiple reports 3CE has collaborated on and commissioned, including the Central Coast ZEV Strategy (2022) and the Central

Coast Community Energy Blueprint (2023). The Energy Programs team is developing a pilot project that considers site development costs, interconnection needs, technology selections, and community needs.

Early analysis shows 3CE charger ownership would be revenue positive, potentially providing a new revenue stream to secure energy program funding.

CALCCA CONFERENCE HIGHLIGHTS AFFORDABILITY ISSUES AND EMERGING TECHNOLOGY On April 17th and 18th, CalCCA held its annual conference in San Jose. This year 3CE Policy Board members joined staff at the event – with Supervisor Bruce McPherson addressing a special luncheon held for CCA board members on effective advocacy. On April 24, Policy Board Member Jan Marx shared her impressions and key takeaways from the conference with 3CE staff. Staff appreciates and thanks Councilmember Yvette Brooks – City of Capitola, Councilmember Jimmy Dutra – City of Watsonville, Councilmember John Freeman – City of San Juan Bautista, Councilmember Jim Guthrie – City of Arroyo Grande, Councilmember Jan Marx – City of San Luis Obispo, and Supervisor Bruce McPherson – County of Santa Cruz for their participation.

ENROLLMENT OF ATASCADERO AND THE COUNTY OF SAN LUIS OBISPO In January 2025, all eligible electricity customers in the City of Atascadero and San Luis Obispo County will have a choice to opt-out or be enrolled to receive 3CE electricity service. The attached Community Engagement Plan (Plan) is the roadmap for how 3CE is partnering with the City and County to increase awareness about 3CE in the community and facilitate a positive enrollment experience. 3CE staff met with the City of Atascadero and the County of San Luis Obispo to present and discuss the key elements of the Plan on February 27, 2024, and March 1, 2024. City and County staff offered important guidance to 3CE on community partners, events, and communications needs, all of which have been incorporated into the Plan.

ATTACHMENT(S):

1. Contracts under $200k

2. Community Engagement Plan for Atascadero and San Luis Obispo Enrollment

3. Customer Enrollment and Engagement Report

CCCE Contracts < $200k
Vendor Total Engagement Amount From To Service Scope Remarks 1 Wald, Ruhnke & Dost Architects $200,000 4/12/2024 3/30/2027 On-Call Architectural and Engineering Design Services for three-year term to assist the newly acquired building located at 1026 Palm St, San Luis Obispo.
2

Community Engagement Plan for
the January 2025 Enrollment of
The City of Atascadero and The
County of San Luis Obispo
Central Coast Community Energy
Communications Department Division of
Communications and Outreach
May 2024

Contents
PURPOSE & GOALS...................................................................................................... 1 Purpose........................................................................................................................... 1 Community Engagement Goal ........................................................................................ 1 COMMUNITY OUTREACH ............................................................................................. 1 Background..................................................................................................................... 1 What to Expect................................................................................................................ 1 3CE ............................................................................................................................. 2 Key Community Partnerships.......................................................................................... 2 Collaboration with Atascadero and SLO County ............................................................. 3 3CE-Hosted Webinars..................................................................................................... 4 Customer Segments........................................................................................................ 4 Underserved Communities.............................................................................................. 5 COMMUNICATIONS....................................................................................................... 6 Press ............................................................................................................................. 6 Social Media.................................................................................................................... 6 Email Newsletters (E-news) ............................................................................................ 7 Advertising ...................................................................................................................... 7 ENROLLMENT TIMELINE .............................................................................................. 8 ENROLLING COMMUNITIES....................................................................................... 10 City of Atascadero......................................................................................................... 10 County of San Luis Obispo............................................................................................ 12 3CE KEY ENROLLMENT STAFF ................................... Error! Bookmark not defined.

1 PURPOSE & GOALS
Purpose
In January 2025, Central Coast Community Energy (3CE) will begin serving the City of Atascadero and the unincorporated communities of the County of San Luis Obispo (SLO) with publicly owned power, leading residents and businesses on a path to 100% clean and renewable electricity. This document provides a community outreach, engagement, and communications roadmap for 3CE, Atascadero, and SLO County to welcome customers into 3CE service.

Community Engagement Goal
Our community engagement efforts are intended to raise awareness about the benefits of 3CE service and to facilitate an efficient, informed, and successful process while enrolling 95% of eligible customers.

COMMUNITY OUTREACH
Background
3CE is a local public agency spanning five counties that began service in 2018 to provide clean and renewable energy to the communities of the Central Coast. The City of Atascadero and the County of San Luis Obispo voted to join 3CE in February 2022 and March 2023, respectively. Starting in January 2025, all eligible electricity customers within Atascadero and unincorporated SLO County will be enrolled with 3CE, which will become their primary electricity generation provider. Since PG&E will continue to provide transmission and distribution, members of these communities will become both PG&E and 3CE customers. Customers need take no action to begin benefiting from 3CE service.

If a customer elects to opt out of 3CE service they may do so online, using an automated voice system, or by talking to our call center. If the request is received 60 days prior or 60 days after their enrollment date, there is no fee to process the opt-out.

After the enrollment period, there is a $5 service fee for residential and a $25 fee for commercial accounts.

What to Expect
The two-stage formal enrollment process for Atascadero and SLO County will begin 60 days prior to the start of 3CE service (“pre-enrollment”) and end 60 days afterward (“post-enrollment”), as required by the California Public Utilities Commission. With 3CE service for both areas set to start in January 2025 (on customers’ regular meter-read dates), pre-enrollment will begin in November 2024 and post-enrollment will conclude at the end of March 2025.

2 The pre-enrollment process will begin with two notification mailers or emails (depending on customer preference) sent to all eligible customers in November and December 2024. As part of post-enrollment, two additional mailers or emails will be sent to all customers in February and March 2025.
3CE
3CE will begin outreach and engagement efforts in the summer of 2024, four months before outreach begins for formal enrollment. Paid advertising, social media, and earned media will follow in early fall 2024.

To ensure a smooth transition, 3CE is committed to engaging with and educating customers about the enrollment process, their energy choices, and the value and benefits of 3CE service. We will work to minimize misinformation and any perceived negative impacts on enrolling communities while maximizing our enrollment potential and participation in 3CE service.

Key Community Partnerships
3CE brings positive impact, including increased opportunities for partnership to the enrolling communities. Our relationships with community-based organizations will be at the center of our outreach efforts.
3CE will continue to work with City and County staff and local stakeholders to strengthen relationships and help augment a diverse inventory of key community interest groups and organizations, such as business and commerce associations, educational institutions, students, environmental groups, arts and culture organizations, neighborhood associations, senior centers, civic service clubs, social service providers, ethnic organizations, transportation providers, government advisory bodies, and professional and networking groups.

Initial outreach will focus on the following types of organizations:

City and County Staff
3CE will keep City and County staff informed throughout the enrollment phase and collaborate on key outreach initiatives and approach.

Chambers of Commerce
3CE is active in many regional Chambers of Commerce and will work with these organizations to host and participate in events and awareness-raising opportunities.

Service Clubs
3CE regularly presents to service clubs to promote our services and programs. In late summer and early fall, 3CE will engage these organizations to facilitate enrollment.

Contractor Associations
3CE currently works with contractor associations to promote our rebate programs and will ensure these groups understand the enrollment process and the forthcoming

3 opportunity to enroll additional projects and customers in 3CE’s Energy Program offerings.

Neighborhood & Homeowners Associations
3CE will provide information to organizations serving multiple households. This may include providing material for newsletters or in-person presentations when appropriate.

Agricultural Organizations
3CE collaborates with growers, vintners, and other farm-based business organizations to promote our agriculture-focused programs and find unique ways to serve this industry’s needs. 3CE will engage these groups to ensure understanding of the enrollment process and its benefits.

Family Resource Organizations
As part of our outreach to low-income and other hard-to-reach communities, 3CE will grow our partnerships with organizations that serve these communities including food banks, resource centers, and senior centers.

Community Events
3CE will participate in community events to educate the public on the transition to 3CE service. We will provide digital (and paper as applicable) fact sheets, flyers, and content for newsletters and websites, and will seek to partner with municipal staff in other ways to inform community interest groups, Commissions, and organizations about 3CE.

Initial Partner Organizations: Atascadero Chamber of Commerce, Atascadero Rotary Club, Boys & Girls Club of Mid Central Coast, California Valley Community Service District, Cambria Chamber of Commerce, Cayucos Chamber of Commerce, Home Builders Association of the Central Coast, Kiwanis, Link Family Resources, Loaves & Fishes, Los Osos/Baywood Park Chamber of Commerce, Morro Bay Chamber of Commerce, Optimist Club, Paso Robles/ Templeton Chamber of Commerce, Paso Wine Country Alliance, Quota of Atascadero, Rotary Clubs, Senior Citizens’ Centers, SLO Builder Exchange.

Collaboration with Atascadero and SLO County
Community is at the core of 3CE’s mission, and the active involvement of local leaders and city/county staff will be essential to a successful enrollment. City and County staff will have the opportunity to collaborate with 3CE Communications and Outreach staff to develop strategies for public engagement.
3CE, the City and County will partner to:
 Recommend venues, community publications, and/or unique advertising opportunities

4  Help share information about the enrollment process, 3CE services, and upcoming outreach events via City and County newsletter and social media channels (NextDoor, X/Twitter, Instagram, Facebook).
 Facilitate and promote 3CE-hosted town halls or webinars (virtual or in person) both pre- and post-enrollment. These meetings will allow residents and business owners to engage with 3CE staff and get answers to their questions regarding their energy options.
 Invite 3CE staff to present, virtually or in person, to key community organizations such as local Chambers of Commerce, HOAs, and business associations. 3CE-Hosted Webinars
Webinars will provide increased access to information for residents unable to engage in person. The forums will follow a presentation format ending with a Q&A session and last approximately one hour. Attendees will learn about the Community Choice Aggregation model as well as 3CE’s background, service area, billing details, available energy programs, and future plans.

Customer Segments
While the majority of customers in the enrolling jurisdictions are residential, non-residential customers consume the greatest share of electricity in the unincorporated areas and about half in the City of Atascadero. Effective enrollment outreach requires a specialized focus on each community’s largest energy users. In addition, we have identified customer segments that require special attention to meet our enrollment and equity goals.

Commercial Accounts
3CE will partner with leading local business organizations to help inform their stakeholders and membership about the transition to 3CE electricity. Communications will include presentations at meetings and community events and the provision of educational content for the organizations’ newsletters and websites. Webinars for commercial and agricultural customers will additionally be hosted during the enrollment window.

High Energy Consumers
3CE will invite the 50 largest non-residential energy users to attend a special meeting and virtual workshop, geared specifically for large commercial, industrial, and agricultural customers. 3CE staff will seek on-site visits with representatives of these businesses, present pre-enrollment webinars for commercial customers with questions specific to their operations, and share applicable Energy Programs to support efficient operations and reduced reliance on fossil fuels.

5 Energy Discount Programs
The 2022 Census found that about 12% of adults in SLO County live below the federal poverty line. Many participate in income-based energy discount programs such as California Alternative Rates for Energy (CARE) and Family Electric Rate Assistance (FERA). Customers already enrolled in a discount program need take no action and their programs will not be affected by the transition to 3CE service. We consider it particularly important for community members with low and/or fixed incomes to understand their electricity options and to know their discount programs will not be disrupted by the enrollment process.

Hard-to-Reach Communities
In an effort to leave no customer behind, 3CE will collaborate with organizations that work specifically with hard-to-reach populations. This focused outreach will include outreach to senior, farmworker, and low-income members of the community.

Customers with Solar, Wind, and Batteries
Customers with solar or wind generation and/or battery storage are billed under 3CE’s Net Energy Metering (NEM) program or Solar Billing Plan (SBP). When they enroll with 3CE, they receive an automatic “true-up” in which they are given retail credits for any energy they generated beyond what they consumed. Going forward, these customers will true-up for generation services each December (they will have a separate annual true-up for their transmission and distribution services from PG&E). 3CE will provide information to these customers via customized enrollment notices to NEM/SBP customers, discuss NEM/SBP accounts during public presentations, and distribute NEM/SBP-specific outreach materials at community events.

Underserved Communities
3CE considers communities to be underserved if their access to public investments, resources, education, and information about energy services is limited.

Restricted access may be due to several factors.

Geographic location –primarily those living in rural areas Language and cultural differences – predominately language barriers Socioeconomic status – issues associated with financial insecurity Health risks – Customers with chronic illnesses often have a pronounced need for energy reliability to keep their medical devices powered during power shutoffs Position within the Digital Divide – customers who do not have access to computers/tablets and/or internet
Exposure to environmental hazards – those facing environmental burdens due to climate change (for example: heatwaves, wildfires, smoke, sea-level rise, flooding, and landslides)

6 As part of the enrollment process, 3CE will focus on the priorities identified in the FY2024-25 Action Plan advancing the Underserved Communities Outreach & Engagement Plan.

Enrollment of CARE/FERA Customers
Development of a campaign to ensure our most financially vulnerable customers are aware of the savings provided by 3CE generation service.

Simplify Communication
Reduce language and access barriers by using more illustrations and better aligning our materials with the literacy levels found in communities. Aim to develop materials in native languages rather than translating English materials.

Community Connections
Develop and strengthen relationships with select community partners to increase knowledge about our programs, and rates. 3CE will work with organizations such as the Hispanic Business Association of the Central Coast, the Latino Outreach Council, & the LINK Resource Center.

COMMUNICATIONS
Press
Effective media relations are essential for educating enrolling households and businesses through their trusted news sources and establishing public confidence in the agency. A primary strategy will be to engage with local and regional media. Specific tactics will include press releases prior to, during, and post-enrollment, responding to media inquiries, and monitoring news channels and opinion columns for accurate and complete information.

Social Media
3CE will use social media platforms to raise awareness and visibility for the agency, support the goal of reaching residents and businesses throughout SLO County, educate customers about the enrollment process, and aid households and businesses in making informed decisions about their energy provider. The social media strategy will be two-fold: 1) Pushing organic and boosted content out through 3CE’s own social channels, and 2) Providing readymade posts, content, and/or links to 3CE posts to enrolling member agencies and community partners to share or push content out through their own social channels.

7 FACEBOOK TWITTER INSTAGRAM NEXTDOOR
Advance online
engagement prior
to pre-enrollment
via geotargeted
content.

Synchronize social
content and
message with
monthly content
shares beginning
in October.

Provide ready-made content
and/or encourage
enrolling member
agencies to share
3CE posts.

Leverage online
earned media and
mentions via
community
partners.

Synchronize social
content and
message with
monthly CBO and
member agency
shares beginning in
October.

Provide ready-made
content and/or
encourage enrolling
member agencies to
share 3CE posts.

Advance online
engagement prior
to pre-enrollment
via geo-targeted
content.

Synchronize social
content and
message with
monthly content
shares beginning in
October.

Provide ready-made content
and/or encourage
enrolling member
agencies to share
3CE posts.

Leverage online
earned media and
mentions via
community
partners.

Provide enrolling
member agencies
with short, fact-based PSA
material to
augment
NextDoor’s policy
that limits the
number of posts
3CE can do in a
given month.

Email Newsletters (E-news)
Similar to social media, 3CE’s E-News strategy will be two-fold: 1) 3CE will actively encourage households and businesses to subscribe to our newsletter for the most up-to-date information such as informational webinars and tabling events, and 2) 3CE will provide enrolling member agencies and community partners with ready-made news content for their own e-newsletters and email campaigns to extend the reach of our communications and further push accurate information out through trusted community sources.

Advertising
3CE will invest $75,000 in a mix of digital/social media, radio, and print advertising through a combination of local and regional outlets. A more comprehensive advertising plan will be available by July 30, 2024.

Digital/social
Radio
(commercial and
public radio)
Print news in
regional/local
dailies and
weeklies (as need)
Outdoor
advertising
(if applicable)

8 ENROLLMENT TIMELINE
Pre-Enrollment
SUMMER
2024
 Begin investment in community events
 Schedule meetings with community groups and leaders
 Begin meeting with key accounts and community leaders

OCTOBER
2024
 Host and sponsor events with community partners
 Provide Atascadero and SLO County with tools for early outreach (email, e-newsletter, social media)
 Presentation to City Council & Board of Supervisors
 Begin outreach to community and business leaders
 Host webinar(s) for community leaders and community
organizations with community partners
 Host webinar(s) for business leaders and business
organizations with community partners
 Provide content (email, e-newsletter, social media,
videos) to organizations
 Begin paid advertising (radio, print and online news, social media)
 Public Service Announcements

NOVEMBER
2024
 Enrollment Notification #1 sent to customers
 Host and sponsor community events
 Host enrollment webinar
 Continued outreach to key commercial customers
(webinars or in-person presentations)
 Continued outreach to key community groups (webinars
or in-person presentations)
 Paid advertising (radio, print and online news, social media)
 Public Service Announcements

9 DECEMBER
2024
 Enrollment Notification #2 sent to customers
 Host and sponsor community events
 Letter/email to customers with solar, wind, and/or battery  Continued outreach to commercial customers (webinars
or in-person presentations)
 Continued outreach to key community groups (webinars
or in-person presentations)
 Paid advertising (radio, print and online news, social media)
 Public Service Announcements
Post- Enrollment

JANUARY
2025
 Enrollment begins
 Virtual or in-person “Flip the Switch” Launch Event
 Outreach to commercial customers (webinars or in-person presentations)  Outreach to key community groups (webinars or in-person presentations)  Advertising (radio, print and online news, social media)  Local media outreach
 Public Service Announcements

FEBRUARY
2025
 Enrollment Notification #3 sent to customers.
 Public Forums throughout enrolling service area
 Outreach to commercial customers (webinars or in-person presentations  Outreach to key community groups (webinars or in-person presentations)  Advertising (radio, print and online news, social media)  Public Service Announcements

10 MARCH
2025
 Enrollment Notification #4 sent to customers
 Outreach to commercial customers
 Advertising (radio, print and online news, social media)  Public Service Announcements
APRIL 2025 &
BEYOND
 Presentations to City Councils / Boards of Supervisors for enrolling communities
 Outreach to commercial customers
 Ongoing efforts related to 3CE’s Outreach and Customer Engagement Strategy
 Ongoing outreach to low-income and other hard-to-reach communities

ENROLLING COMMUNITIES
City of Atascadero
2022 Population: 29,684
The City of Atascadero boasts natural beauty, historical significance, and a vibrant community, including a growing business and tourism base.

The city benefits from strong health care, retail, manufacturing, and education sectors.

Atascadero is part of the Paso Robles American Viticultural Area, which includes over 200 wineries and reflects the region’s focus on winemaking and related tourism. Small businesses thrive in Atascadero, supported by the city’s economic development initiatives and a community that values local products and services.

Atascadero is committed to preserving its natural landscapes and promoting environmental stewardship. Residents enjoy its parks, open spaces, and outdoor recreation, with trails for hiking and biking. Atascadero also hosts public events throughout the year, including the Atascadero Wine Festival, Colony Days, and the Winter Wonderland.

City government and the local Chamber are ideal partners for 3CE, as both are highly engaged with residents and businesses. 3CE will create touch points with community leaders and organizations to clearly communicate the benefits of 3CE and ensure a successful enrollment.

11 Eligible Customer Accounts Enrolling (as of Jan. 8, 2024)

COMMERCIAL RESIDENTIAL AGRICULTURAL CARE/FERA
1,787 12,242 7 3,395
Percentage of Energy Consumed by Account Type (as of Jan. 8, 2024) The following table shows the load in each sector as a percentage of the total load for the jurisdiction.

COMMERCIAL RESIDENTIAL AGRICULTURAL

52.1% 47.8% 0.01%
Key Partner Organizations
Atascadero Rotary
Club Atascadero Kiwanis
Atascadero
Chamber of
Commerce
Home Builders
Association of the
Central Coast
Optimist Club Quota of
Atascadero
Senior Citizens’
Center
Link Family
Resources
Boys & Girls Club of Mid
Central Coast
Atascadero Loaves &
Fishes SLO Builder Exchange
Pre-Enrollment Event Sponsorship Opportunities
Summer 2024 Series Sponsor for “Saturdays in the Park” Summer Concerts Sponsor two “Movies in the Park” nights
October 2024 Sponsor Atascadero Chamber of Commerce Membership Mixer November 2024 Co-Host Chamber Mixer with the City of Atascadero December 2024 Sponsor of The City of Atascadero “Light up the Downtown”

12 County of San Luis Obispo
2022 Population of Unincorporated Area: 122,705
SLO County’s landscapes range from beaches and coastal plains to inland mountain regions, and its climate is ideal for agriculture, wine production, and outdoor recreation.

The population is diverse, with a mix of urban and rural communities.

The economy’s major sectors include agriculture, tourism, education, and technology.

The county’s renowned winemaking industry is especially significant to both the local and state economies. Education is another key sector, anchored by California Polytechnic State University, which draws students from all over the world and is a major employer.

SLO County is home to many state parks, protected areas, and beaches, environmental stewardship is a regional priority. The county hosts a variety of cultural events, festivals, and art exhibits, reflecting the rich heritage and creative spirit of its communities. The annual California Mid-State Fair in Paso Robles attracts visitors from across the state. 3CE will engage with local stakeholders and trusted, local voices to best serve the diverse needs of SLO County’s many communities.

Eligible Customer Accounts Enrolling (as of Jan. 8, 2024)

COMMERCIAL RESIDENTIAL AGRICULTURAL CARE/FERA
7,764 50,650 2,495 7,943
Percentage of Energy Consumed by Account Type (as of Jan. 8, 2024) The following table shows the load in each sector as a percentage of the total load for the jurisdiction.

COMMERCIAL RESIDENTIAL AGRICULTURAL

46.5% 37.5% 15.9%

13 Key Partner Organizations
Rotary Clubs Kiwanis Clubs Chambers of
Commerce
Home Builders
Association of the
Central Coast
Optimist Club Loaves & Fishes Senior Citizens’
Centers
Link Family
Resources
Boys & Girls Club of Mid
Central Coast
Boys & Girls Club of
South SLO County SLO Builder Exchange
Promotores Collaborative
of San Luis Obispo
County

CAPSLO REACH
Unincorporated Towns & Communities: Adelaide, Avila Beach, Bradley, Bradley, California Valley, Cambria, Carrisa Plains, Cayucos, Cholame, Creston, Cuyama, Edna (Valley), Harmony, Heritage Ranch, Lake Nacimiento, Los Osos, Nipomo, Oceano, Parkfield, Ragged Point, San Miguel, San Simeon, Santa Margarita, Shandon, Templeton, Verde.

Community Service Districts (CSDs): Avila Beach, California Valley, Cambria, Creston Hills Ranch, Ground Squirrel Hallow, Heritage Ranch, Independence Ranch, Linne, Los Osos, Nipomo, Oceano, San Miguel, San Simeon, Squire Canyon, Templeton.

Customer Enrollment and Engagement Report
Central Coast Community Energy
Communications and Outreach
April 2024
Enrollment by Investor-Owned Utility:

PG&E SCE

94.06% 93.66%
March opt-outs by reason:

Concerns about
Government-Run
Power Agency
0%
Decline to
Provide
13%
Dislike being
automatically
enrolled
17%
Have renewable
Energy Reliability
Concerns
1%
Other
12%
Rate or Cost
Concerns
48%
Service or Billing
Concerns
9%

3CE enrollment as of April 1, 2024
Member Community % of Accounts % Enrolled
ARROYO GRANDE 94.76% 92.98%
BUELLTON 96.81% 94.52%
CAPITOLA 95.23% 97.82%
CARMEL 97.68% 97.60%
CARPINTERIA 95.78% 98.70%
DEL REY OAKS 95.40% 96.89%
GOLETA 94.91% 87.90%
GONZALES 87.52% 97.09%
GREENFIELD 87.84% 94.94%
GROVER BEACH 96.44% 95.72%
GUADALUPE 97.63% 99.11%
HOLLISTER 89.12% 91.75%
MARINA 93.91% 92.16%
MONTEREY CO 92.75% 95.00%
MONTEREY 95.95% 92.76%
MORRO BAY 96.85% 95.42%
PACIFIC GROVE INC 96.81% 96.69%
PASO ROBLES INC 91.97% 85.41%
PISMO BEACH INC 95.34% 95.94%
SALINAS INC 90.13% 93.42%
SAN BENITO CO 90.83% 94.48%
SAN JUAN BAUTISTA INC 91.62% 91.71%
SAN LUIS OBISPO INC 95.97% 97.22%
SAND CITY INC 93.20% 67.34%
SANTA BARBARA CO 95.93% 81.35%
SANTA CRUZ CO 94.97% 94.78%
SANTA CRUZ INC 96.42% 96.14%
SANTA MARIA INC 97.73% 91.62%
SCOTTS VALLEY INC 96.19% 94.62%
SEASIDE INC 94.43% 96.15%
SOLEDAD INC 88.82% 94.13%
SOLVANG INC 96.54% 96.07%
WATSONVILLE INC 90.90% 93.95%

Media Outreach
March 2024
Facebook
Followers: 1,847
Page Reach: 86,512
Page Impressions: 116K
Post Reach: 686
New page followers: 4
Link Clicks: 2
Top Performing Content: Check out these photos of Casa
Diablo-IV (CD4) in Mammoth Lakes, CA! CD4 is a 30
megawatt (MW) geothermal power plant developed by
Ormat Technologies, Inc. that provides stable and reliable renewable benefits 24 hours a day, with zero carbon
emissions. Central Coast Community Energy and Silicon
Valley Clean Energy each receive 7 MW of geothermal
power under a 10-year power purchase agreement. Learn
more about the project: https://ow.ly/vOyt50QSsKl
Facebook En Espanol
Followers: 165
Page Reach: 33
Page Impressions: 51
Post Reach: 21
Post Impressions: 78
New page followers: 0
Link Clicks: 22
Instagram
Followers: 1,095
New Followers: 1
Reach: 114k
Top Performing Content: New info on the SunZia Wind
Project. @GErenewables will contribute 674 wind
turbines to the project that will provide more than 2.4 gigawatts (GW) of power #renewables #cleanenergy
#sustainability
https://twitter.com/GErenewables/status/1744708160
726683853
Twitter (X)
Followers: 1.2K
New Followers: 24
Top Performing Content: New info on the SunZia Wind
Project. @GErenewables will contribute 674 wind
turbines to the project that will provide more than 2.4 gigawatts (GW) of power #renewables #cleanenergy
#sustainability
https://twitter.com/GErenewables/status/1744708160
726683853
LinkedIn
Followers: 2,359
New Followers: 63Page Engagement – 228
Page Impressions – 7428
Page Reach – 4,482

Staff Report Item 8
TO: Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Christopher Cook, Director of Energy Programs Griffin Boyle, Energy Programs Analyst
SUBJECT: Consider supporting 3CE's proposed behind-the-meter residential battery rebate program and recommending Policy Board's support.

DATE: May 8, 2024
RECOMMENDATION:

This recommends that the 3CE Operations Board of Directors consider supporting 3CE’s proposed behind-the-meter residential battery rebate program and recommending the Policy Board’s support.

BACKGROUND:

Batteries are a necessary part of the transition to renewable energy because they help mitigate the challenges associated with intermittent renewable resources. In this context, “intermittency” refers to the fact that wind and solar only produce energy when nature cooperates. The electricity these sources generate varies from zero to full capacity depending on conditions. Batteries can capture energy during the middle of the day when solar power is abundant; and dispatch their power in the evening hours when those resources go offline and yet, the customer demand for electricity remains high.

In December 2022, the California Public Utilities Commission established the Net Billing Tariff (NBT) – a successor to Net Energy Metering (NEM) 2.0, a long-standing pricing schedule for Californians with rooftop solar and other renewable electrical generation facilities designed to offset customers’ electric needs. Among its policy goals, NBT seeks to eliminate the subsidy paid to existing NEM customers and incentivize battery storage through time-of-use (TOU) pricing.

TOU rates encourage energy arbitrage – simply, buying power from the grid during off-peak hours when renewable energy is readily available and prices are low, and storing it for use during peak hours, when the grid relies heavily on natural gas and electricity prices are high. Customers engaging in arbitrage behavior not only stand to save on their energy bills, but they are also helping to reduce emissions and support a cleaner and more reliable grid.

On February 21, 2024, the 3CE Policy Board of Directors adopted Resolution No. PB-2024-02 establishing a 3CE NBT, with an implementation date of June 1, 2024. Largely aligned with the NBT design approved by the CPUC, 3CE’s NBT also incentives batteries for customers with rooftop solar.

DISCUSSION/ANALYSIS:
3CE’s Battery Rebate Program seeks to better match customer energy demand with the available renewable energy supply through increased residential use of behind-the-meter battery storage systems. The program will enable individual customers to actively manage their electricity use, respond to price signals, and create a benefit to all 3CE customers by reducing consumption in grid strained hours (and thereby reducing energy costs for all customers) through load shifting.

The program offers two tiers of rebates: $300 per kilowatt hour (kWh) of battery capacity for customers on 3Cchoice, 3Cprime, or NBT rates, and $500 per kWh for NEM 2.0 customers who elect to transition to NBT early, and customers enrolled in CARE, FERA, and Medical Baseline assistance programs.

Proposed Rebate Typical Rebate
3Cchoice, 3Cprime, and NBT customers $300 per kWh $3,900 NBT Early Adopters; CARE, FERA, & Medical
Baseline
$500 per kWh $6,500
*3CE customers who move from a legacy Net Energy Metering tariff to the new Net Billing Tariff prior to the expiration of their “grandfathering” period rate will receive the higher $700 per kWh incentive.

With the standard rebate amount of $300 per kWh, and a 13-kWh battery, a typical household could expect a 3CE rebate of $3,900, which is around 20% of the typical cost for a battery purchase and installation. Customers are encouraged to stack 3CE’s rebate with other available programs, including the Self-Generation Incentive Program (SGIP), additional PG&E and SCE rebates, and the federal tax credit available through the Inflation Reduction Act (IRA). By adding these rebates to 3CE’s, a typical customer would be reimbursed approximately 60% of the cost to purchase and install a battery.

Customers on CARE and FERA bill payment assistance programs qualify for higher incentive amounts from state and federal sources. Combining available programs with 3CE’s battery rebate program, these customers on average could expect reimbursement for 100% of the cost to purchase and install a home battery.

Based on historical customer data, and an estimated 9% battery adoption rate among new rooftop solar customers, 3CE estimates the program would issue 400 rebates per fiscal year, which equates to approximately 5.2 megawatts (MW) of new energy storage, and an annual expenditure of $2 million.

Staff anticipates launching the Battery Rebate Program in approximately 60 days. Staff anticipates periodically re-evaluating the program to ensure accurate and effective program design and management. This evaluation will include review of the application process, participation rates, number of rebates distributed, and tracking of load shifting.

FISCAL IMPACT:

There is no fiscal impact associated with this program for the current fiscal year, as anticipated costs are contained within the FY 2023-24 Budget approved by the Policy Board of Directors in September 2023.

CONCLUSION:

The Operations Board’s feedback and support for a Battery Rebate Program will inform 3CE’s approach to critical load shifting and provide its customers with increased flexibility, reliability, and affordability.

Staff Report Item 9
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Christopher Cook, Director of Energy Programs SUBJECT: Consider Approving amendment No.1 to Standard Services Agreement with Optony, Inc. to add three (3) additional years for a term ending September 30, 2027 and $2,052,675 for a total not-to-exceed amount of $2,502,675 to expand Member Agency fleet electrification services
DATE: May 8, 2024
RECOMMENDATION:

This recommends that the 3CE Operations Board of Directors consider approving amendment No.1 to Standard Services Agreement with Optony, Inc. to add three (3) additional years for a term ending September 30, 2027 and $2,052,675 for a total not-to-exceed amount of $2,502,675 to expand Member Agency fleet electrification services.

BACKGROUND:

On April 12, 2023, the 3CE Operations Board authorized the CEO to execute an agreement with Optony. to provide technical assistance services to support 3CE Member Agencies fleet electrification efforts in an amount not to exceed $450,000 and a term ending September 30, 2024.

DISCUSSION/ANALYSIS:

Expanding Plan Your Fleet, 3CE’s most utilized Member Agency electrification program, to reach more communities will accelerate member agency fleet electrification efforts while helping Member Agencies meet new regulatory requirements requiring 50% of fleet vehicle purchases are zero-emission in 2024 and 100% by 2027.
3CE’s Plan Your Fleet program offers a full suite of no-cost technical assistance services to Member Agencies to accelerate fleet electrification and the development of electric charging infrastructure.

Through its contract with 3CE, Optony provides hands-on technical assistance to Member Agency fleet managers and staff committed to replacing fleet vehicles with electric alternatives. Technical assistance is offered as a menu of services, including fleet replacement planning and specific project design and engineering work, such as:
 Basis of design and schematic design construction documents for use in the installation bidding process;
 EV charging infrastructure recommendations;
 Optimized charging schedules specific to vehicle duty cycles; and  Individualized funding plans to assist in obtaining rebates, grants, and other financial assistance.

The proposed Amendment No. 1 expands the Plan Your Fleet program to provide on-site services during initial inventory data collection and consulting to help transition completed plans to the implementation phase. Member Agency staff identified these services as critical to the electrification transformation of large fleets. Providing such services to more Member Agencies is anticipated to increase e number of participants in Plan Your Fleet that subsequently take part in 3CE’s Electrify Your Fleet and Charge Your Fleet programs.

The Plan Your Fleet contract allocation for FY 2023-24 was nearly committed by March 1, 2024, only halfway through the fiscal year. In FY 2022-23, the program’s first year of operation, 88.5% of its contract was expended. Contrast this with Charge Your Fleet -- which has allocated approximately 17% of its FY 2023-24 rebate funding to date, and which in FY 2022-23 spent a total of 17% -- and with Electrify Your Fleet, which to date has allocated 6% of its total FY 2023-24 budget and which, in FY 2022- 23 allocated 8% of its total rebate dollars.

Plan Your Fleet serves as a fundamental, initial step in the significant transformation to vehicle procurement required by state zero-emission vehicle mandates. As agencies face challenges related to the acquisition of vehicles and limitations in the numbers and types of vehicles available, Plan Your Fleet is available to help conduct the necessary preparation work, including assessments of the numbers, types, and locations of charging equipment required to support the fleet in coming years.

The Plan Your Fleet program is open to all 3CE Member Agencies and electric vehicles of all types and classes are eligible; however, priority will be given to Member Agencies that have not previously participated in Plan Your Fleet or Member Agencies who have completed the cycle by transitioning successfully completed Plan Your Fleet projects into successfully completed Electrify Your Fleet and Charge Your Fleet projects.

The expansion of Plan Your Fleet services is in addition to, and not replacing, 3CE’s existing incentives to Member Agencies for electric vehicles and charging infrastructure through its Electrify Your Fleet and Charge Your Fleet programs.

FISCAL IMPACT:

The total amount payable by 3CE to Optony under this agreement is dependent on engagements with member agencies and shall not exceed (the “NTE”) the sum of $2,502,675 as follows:

1. The NTE in FY 23/24 shall not exceed $486,375, These costs will stay within the approved FY 23/24 Operating Budget.

2. The NTE in FY 24/25 shall not exceed $691,100, or such amount consistent with the approved FY 24/25 Operating Budget.

3. The NTE in FY 25/26 shall not exceed $650,100, or such amount consistent with the approved FY 25/26 Operating Budget.

4. The NTE in FY 26/27 shall not exceed $675,100, or such amount consistent with the approved FY 26/27 Operating Budget.

CONCLUSION:

The Board’s approval of the amended agreement with Optony, Inc. will allow 3CE to continue to offer its Member Agency program, Plan Your Fleet, and expand its high-demand services to further support fleet electrification at a regional scale.

ATTACHMENT(S):

1. Draft Standard Services Agreement Amendment No. 1 with Optony, Inc.

4/24/2024 1 Contract Number: EP-2024-026
AMENDMENT NO. 1
TO SERVICE AGREEMENT BETWEEN OPTONY INC. AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No. 1 to the Standard Service Agreement (“Agreement”) which was effective on April 24, 2023, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and OPTONY INC. (hereinafter “CONTRACTOR”), a California C-Corporation with its principal place of business located at 5201 Great America Parkway, Suite 320, Santa Clara, CA 95054. 3CE and CONTRACTOR may be individually referred to herein as “Party” or collectively as “Parties”, with respect to the following:

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into a Standard Services Agreement (the “Original Agreement”) on April 24, 2023 to provide Plan Your Fleet (“PYF”) services and support and WHEREAS, 3CE requires PYF additional services from CONTRACTOR in fiscal year 2023-2024, which will increase the total not to exceed amount by $236,375 for a total of $486,375, and WHEREAS, 3CE requires PYF services from CONTRACTOR in fiscal years 2024-2025, 2025-2026, and 2026-2027, which will result in the total not to exceed amount of $2,016,300 and extend the terms of the Agreement to September 30, 2027.

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

1. Amend section 2. Payment Provisions to read as follows:

2.1. 3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B, subject to the limitations set forth in this Agreement. The total amount payable by 3CE to CONTRACTOR under this Agreement shall not exceed (the “NTE”) the sum of $2,502,675 as follows:

2.1.1.The NTE in FY 2023-2024 shall not exceed $486,375

2.1.2.The NTE in FY 2024-2025 shall not exceed $691,100

2.1.3.The NTE in FY 2025-2026 shall not exceed $650,100

2.1.4.The NTE in FY 2026-2027 shall not exceed $675,100

2. Amend the first sentence of Section 3.1 to read as follows:

The term of this Agreement is from the date of execution until September 30, 2027, unless sooner terminated pursuant to the terms of this Agreement.

DocuSign Envelope ID: 2E69F975-1C3C-4432-BA72-10522CC4DC5D

4/24/2024 2 Contract Number: EP-2024-026

3. Replace Exhibit A with Exhibit A-1, attached and incorporated herein.

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

5. Except as provided herein, all remaining terms, conditions and provisions of the Original Agreement are unchanged and unaffected by this Amendment No. 1 and shall continue in full force and effect.

6. A copy of this Amendment No. 1 shall be attached to the Original Agreement.

7. This Amendment No. 1 shall be effective when signed by both parties.

SIGNATURE OF THE PARTIES:

Optony Inc. Central Coast Community Energy
BY:__________________________________ BY:______________________________________ Byron Pakter, Chief Executive Officer Robert M. Shaw, Chief Executive Officer Date: ____________________________ Date: ____________________________ Approved as to Form
BY:______________________________________
Charles J. McKee, General Counsel
Date: ____________________________
Approved as to Financial Terms
DocuSign Envelope ID: 2E69F975-1C3C-4432-BA72-10522CC4DC5D 4/24/2024

4/24/2024 3 Contract Number: EP-2024-026
BY:______________________________________
Dewayne Woods, Chief Financial
Date: ____________________________
DocuSign Envelope ID: 2E69F975-1C3C-4432-BA72-10522CC4DC5D

4/24/2024 4 Contract Number: EP-2024-026
Exhibit A: Scope of Services
In consideration of the payments set forth in Exhibit B, Contractor shall provide the following services:

Program Overview
Through Central Coast Community Energy’s (3CE) Plan Your Fleet (PYF) Program, Contractor will provide a full suite of technical assistance services to Member Agencies from overall fleet planning to infrastructure project design and engineering.

The program is open to all 3CE Member Agencies and electric vehicles of all types and classes are eligible. Agency recruitment will be led by 3CE staff. In addition to the technical assistance to be provided by the Contractor, 3CE is also providing incentives to help pay for vehicle replacements and charging infrastructure through its Electrify Your Fleet and Charge Your Fleet Member Agency Programs.

Goals

1. Enable deployment of Member Agency fleet electrification and associated EV charging infrastructure projects.

2. Prepare participating Member Agencies to plan for and comply with upcoming state public fleet electrification targets.

3. Support Member Agencies with fleet electrification best practices and case studies in support of upcoming state public fleet electrification targets.

4. Share available funding resources to the greatest extent practicable to minimize cost to the participating agencies while ensuring expedient project delivery.

5. Facilitate maximum operational cost savings to fleet managers with guidance, analysis, and trial use of charge management solutions.

6. Facilitate successful coordination between related 3CE programs of Electrify Your Fleet and Charge Your Fleet
Scope of Work
The scope of work of this project is outlined in the key objectives and other sections below.

Contractor Tasks
Contractor shall provide the following:
1 Administrative Tasks

1.1 Annual Program Planning Review Meeting
Participate in an annual program planning review meeting with 3CE to review objectives, budget, timeline, administrative processes, and contract at a mutually agreed time.

DocuSign Envelope ID: 2E69F975-1C3C-4432-BA72-10522CC4DC5D

4/24/2024 5 Contract Number: EP-2024-026

1.2 Monthly Progress Report and Call
Provide a short monthly progress report and associated call with the designated 3CE contract administrator. This monthly progress report may be a table with links and will describe customers engaged, project progress, challenges encountered, a description of additional funding or resources secured, and objectives for the following month. Major supplementary documentation developed in the course of work must be submitted with the Progress Report as agreed with the 3CE contract administrator. This supplementary documentation may include technical designs, vehicle and/or charging infrastructure recommendations and/or specifications, and any materials developed for Member Agency use.

1.3 Annual Report
Contractor shall provide a report at the close of each fiscal year 2024-2025, 2025-2026, and 2026-2027, that includes an executive summary, major accomplishments to date, lessons learned and recommendations for future work, overview and assessment of fleet replacement plans and EV charging project plans delivered to date, and financial summary comparing actual expenditures to the project budget. Draft reports will be submitted to 3CE for review and approval before being finalized.

The yearly report should also include key performance indicators (may be a table), such as:
• Total fleets engaged, including a status summary
• Total fleets receiving support
• Expected number of EVs and charging infrastructure to be deployed, by fleet • Reduction in total ownership costs to fleets
• Estimated fuel and emissions savings, per fleet

1.4 Program Completion Report
As part of the completion of the contract in FY 2026-2027, Contractor shall provide a final report for public distribution, subject to review and approval by 3CE, that includes an executive summary, challenges encountered and lessons learned, best practices for other public agency fleets, case studies suitable for sharing with other fleets, summary of total program cost, impact and key performance indicators utilized in annual reports.

Task 1 Deliverables
• Monthly progress reports
• Three (3) Yearly Reports
• One (1) Program Completion Report
2 Program Improvement Plan
Contractor will support 3CE by providing best practices and guidance on the success of the program.

This will include tasks such as:

DocuSign Envelope ID: 2E69F975-1C3C-4432-BA72-10522CC4DC5D

4/24/2024 6 Contract Number: EP-2024-026
- Development of a program implementation guide including eligibility criteria - Development of an internal program workflow to manage program participant point of contract and fleet electrification general status
- A process flow for Member Agencies to handoff participants to the program after outreach - Outline of program code of conduct and communications protocols - Creation of an intake application
- Creation of data collection tools, and templates
- Other administrative tasks as they arise
Task 2 Deliverables
• Program implementation guide updates, as needed
• Internal program workflow graphic and/or explanation showing handoff points to subconsultants, draft and final deliverables updates, as needed • Process flow for Member Agencies (graphic and/or explanation) updates, as needed • Intake application updates, as needed
• Data collection tools updates, as needed
3 Program Outreach Events
Contractor to provide information, best practices, lessons learned, etc. to public stakeholders, including other public agencies that are not participating in the program, to generally promote fleet electrification. This will include participation in a minimum of three (3) webinars or events over the term of the contract. The outreach events may include on program promotion, such as an overview of the fleet electrification process, benefits and considerations of electrification, preview of engagement steps and schedule, a fleet electrification case study including results, best practices, lessons learned, and other aspects to encourage future participation in the program. 3CE will review and approve Contractors’ presentation materials prior to being shared with the public.

Task 3 Deliverables
• Outreach Event presentation materials
4 Technical Assistance

4.1 Fleet Plan

4.1.1 Member Agency staff engagement and data collection In coordination with 3CE staff, Contractor will facilitate outreach and engagement with local agency staff and other stakeholders to collect fleet and other relevant data and assist in project planning. This engagement will include the following:

1. Participate in targeted Member Agency informational meetings in coordination with 3CE DocuSign Envelope ID: 2E69F975-1C3C-4432-BA72-10522CC4DC5D

4/24/2024 7 Contract Number: EP-2024-026

2. Organize and schedule meetings with Member Agency staff, in coordination with 3CE, develop agendas, circulate meeting minutes, etc.

3. Facilitate a kickoff meeting (virtual or in-person, as needed) with Member Agency staff and 3CE and follow up meetings, as relevant, to gather:
- Baseline information (e.g., fleet inventories, “as-builts,” current electrical infrastructure layout, panel schedules, and capacity, etc.)
- Existing or proposed near-term and long-term fleet transition policies - Other information needed to scope specific projects

4. Contractor will gather information on vehicle data, including vehicle characteristics and duty cycles and facility information (e.g., electrical capacity and other relevant details).

5. Contractor will be available for one (1) in person site visit per Member Agencies to further assist with gathering information on vehicle data.

6. Contractor will utilize templates for data collection that seek to minimize the level of effort needed on behalf of fleet managers.

7. Contractor will share data obtained from Member Agencies with 3CE.

4.1.2 Develop vehicle replacement and procurement plans Contractor will develop vehicle replacement and procurement plans that outline a roughly 10-year, or other schedule as mutually determined by Contractor and Member Agency customer. The plans will include an analysis of the total vehicle fleet, estimated duty cycles and vehicle use, factor in any relevant public fleet emissions reductions targets set by local or state agencies (e.g. the California Air Resources Board Advanced Clean Fleet rules for public), and include the following:

1. Analysis of existing fleet vehicles and current duty cycles.

2. Identification of 1 for 1 electric vehicle alternative options for each vehicle in the fleet, noting market availability and when replacements are not yet available or practical due to conditions such as range, hauling capacity, or other use cases (e.g. pursuit-rated police vehicles).

Recommended electric vehicle replacements don’t need to be an exhaustive list. Contractor will note general availability of these vehicles on cooperative purchasing contracts (e.g. Sourcewell, Drive EV Fleets, California Department of General Services, etc.,) to streamline future vehicle procurement.

3. Vehicle replacement schedule that aligns with the fleet’s typical replacement cycle, but also factors in state or local electrification timing requirements such as the California Air Resources Board Advanced Clean Fleet regulations. When practical, replacement schedules should start with “low-hanging fruit” options such as pool cars, light-duty vehicles, etc. as well as agency priority replacements, before moving to more difficult use cases over time.

4. Estimated purchase price and an approximated total cost of ownership of each vehicle replacement in comparison to the internal-combustion engine equivalent over the service life of the vehicle.

DocuSign Envelope ID: 2E69F975-1C3C-4432-BA72-10522CC4DC5D

4/24/2024 8 Contract Number: EP-2024-026

5. Energy needs assessment for the electric fleet, which includes a calculation of each vehicle replacement’s estimated annual electricity needs.

Vehicle replacement and procurement plans should note the following, when applicable:

1. Consolidation opportunities to replace multiple underutilized vehicles with a fewer number of vehicles.

2. “Right-sizing” opportunities to replace a vehicle with a smaller vehicle, if the duty cycle or use has changed.

Contractor shall make proprietary tools or software (e.g., Municipal Fleet Planning Tool) available to fleet managers for the duration of the project.

Vehicle replacement and procurement plans will be reviewed by both the participating agency and 3CE.

Contractor will correct, edit, and amend the plans prior to being finalized.

4.2 Infrastructure Plan

4.2.1 Perform charging needs assessment
Recommended charging infrastructure types for each vehicle, which factors in estimated daily duty cycles (e.g., Level 2, high-power Level 2, DC fast charging of various power capacities, etc.) and vehicle charging needs, and necessary port count per charger power level at each domicile site.

Recommendations for specific charging infrastructure models for the vehicle replacements identified, including piggybacking and cooperative contract procurement options (e.g., Sourcewell, Drive EV Fleets, etc.), if available, to streamline project timelines.

4.2.2 Produce charging infrastructure project plans
Contractor will produce complete project plans for the installation of EV charging infrastructure at one location chosen by each participating Member Agency. Project plans should seek to include other utility programs such as PG&E’s EV Fleets Program, which covers electricity upgrades and other front of the meter capacity upgrades, as relevant. Project plans should also future proof as much as practical and relevant. These plans shall include:

1. Facility assessment, including the determination of electrical infrastructure capacity to support recommended charging equipment, existing electrical service, potential connection points for EV charging infrastructure, identification of suitable locations for supporting electrical infrastructure (panels, transformers, etc.), ADA requirements as necessary, potential trenching and/or conduit run routes, identify other site-specific challenges or opportunities to the project.

2. Electrical load analyses, as needed.

3. Review of IOU grid infrastructure capacity using publicly available resources, if available.

4. Project cost estimate.

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4/24/2024 9 Contract Number: EP-2024-026

5. Construction engineering documents that the agency can use in a public bid to hire contractors for installation services. These documents will include:
a. Basis of Design
i. Project summary and description
ii. Engineering requirements and performance specifications iii. Identification of ADA compliant EV stalls, if required iv. Considerations for grading, if required
v. Equipment specifications and cutsheets
vi. Other documents, as required by the Member Agency, to bid these charging station installation projects or receive permits
b. Schematic Design Documents
i. Architectural site plan of the parking areas and other facilities, as relevant ii. Electrical single-line diagrams
iii. Trenching and/or conduit routes
iv. Panel schedules, if required

6. Contractor shall arrange for a site walk with local agency contact to gather information to complete this task, as necessary.

7. Charging infrastructure project plans will be reviewed by both the participating Member Agency and 3CE. Contractor will correct, edit, and amend the plans prior to being finalized.

4.2.3 Charging Schedule and Optimization Plan
For each project, Contractor will provide upon request a Charging Schedule and Optimization Plan, in the form of a brief memo, which includes:

1. Simulated 15-minute charging load profiles based on vehicle behavior, duty cycles, and total energy needs, with and without charge optimization

2. Costs and other impacts of optimized and non-optimized charging

3. Recommended charging schedules based on maximum cost benefit to fleet, including time of use and demand charge optimization

4. 3CE will review and approve Charging Schedule and Optimization Plans before being finalized.

4.3 Additional Coordination:

4.3.1 Follow-On 3CE Programs (Electrify Your Fleet And Charge Your Fleet)

1. Provide transition roadmap for implementation related to other 3CE program offerings a. Perform a needs assessment for each Member Agency to identify potential applications of Charge Your Fleet and Electrify Your Ride.

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4/24/2024 10 Contract Number: EP-2024-026
b. Provide a roadmap for each Member Agency to access funding and support through other 3CE program offerings, such as Electrify Your Ride and Charge Your Fleet.

2. Provide a detailed Funding Package Overview (may be a table), which includes:
a. Currently available funding options for both the vehicles and charging infrastructure from relevant funding sources.
b. The Overview will include any requirements unique to the funding agency such as vehicle utilization, access, vehicle types or use cases, etc. c. Contractors should seek opportunities to stack funding, as relevant and allowable, to minimize costs to public agencies.
d. Contractors shall also provide all information to the agencies to minimize effort needed by the fleet managers to apply for funding.
e. The Funding Package Overview for each participating agency shall be reviewed and approved by 3CE before being finalized.

4.3.2 Provide other as-need consulting services block-grants for support to be identified during the program delivery with each individual participant.

Task 4 Deliverables
• Up to thirty-five (35) Member Agency fleet electrification packages contingent upon Member Agency participation, which each include the following elements1 :
a. Report summarizing baseline data collection, fleet composition or asset lists, etc. b. Spreadsheet-based model with vehicle replacement plan scenarios, including:
i. Total cost of ownership analysis
ii. Replacement timeline
iii. Identified vehicles as replacement options
iv. Electrify Your Fleet recommendations
c. Spreadsheet-based model with charging needs assessment, including number and types of charging stations required for an all-electric fleet d. Memo summarizing project charging infrastructure plan for one (1) project site, including project overview, number of charging stations to be installed, determination of electrical capacity of the site to support recommended charging infrastructure, and futureproofing elements to be included
e. Basis of Design and Schematic Design construction documents for one (1) project site per fleet
1 Unless determined by 3CE that not all components are necessary for a specific project with a public fleet. For example, a public fleet that already has conducted a vehicle replacement plan, but requires the other project components specified in this contract.

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4/24/2024 11 Contract Number: EP-2024-026
f. Memo summarizing relevant funding program opportunities and “to do” list of information needed to apply for relevant funding programs and important dates and deadlines
g. Charging optimization memo that includes charging cost scenarios for managed and unmanaged charging and Charge Your Fleet recommendations DocuSign Envelope ID: 2E69F975-1C3C-4432-BA72-10522CC4DC5D

4/24/2024 12 Contract Number: EP-2024-026
Exhibit B: Payment Terms
In consideration of the services provided by Contractor described in Exhibit A and subject to the terms of the Agreement, 3CE shall pay Contractor an amount not to exceed $2,502,675.

Consultant reserves the right to shift budget between Tasks, given written authorization from 3CE. In all cases the annual Fiscal Year not-to-exceed total shall govern.

Contractor will invoice 3CE in accordance with Section 6 – Payment Conditions based on the following fee schedule and terms:

Time and Materials. Work performed on Tasks 1 – 3 of Exhibit A: Scope of Services shall be invoiced monthly, on a time and materials basis as shown in Table B1. Rates for key staff are in the table below.

Rates shall remain fixed for the term of this Agreement. Adjustments to staff rates shall require 1) written notice of the change at least 30 days prior to the date the change is to become effective and 2) prior written approval by 3CE.

Position Principal Director
Senior
Engineer Engineer Analyst or Project Manager
Hourly Rate $ 335 $ 285 $ 235 $ 195 $ 190
Progress Payments. Tasks 4 of Exhibit A: Scope of Services shall be billed based on the percentage of completion and corresponding percentage of the fee for each task deliverable as shown below in Table B2, the Technical Assistance Fee Schedule. In accordance with Section 6 of this Agreement, invoices may be submitted once each month as the work satisfactorily progresses, as detailed in monthly progress reports, and after acceptance by 3CE staff. The progress estimates shall be based upon materials development and/or labor expended to complete a deliverable.

DocuSign Envelope ID: 2E69F975-1C3C-4432-BA72-10522CC4DC5D

4/24/2024 13 Contract Number: EP-2024-026
Table B1 Estimated
Hours Cost Estimated Hours Cost Estimated Hours Cost Estimated Hours Cost Task 1
Administrative Tasks
FY 2023-2024
(May-Sept Extension only) FY 2024 - 2025 FY 2025 - 2026 FY 2026 - 2027

1.1 Annual Program Planning
Review Presentation/Meeting
Amendment 1 does not
provide additional budget
to this task
8 $2,000 8 $2,000 8 $2,000

1.2 Monthly Progress Report
and Call 64 $22,500 64 $22,500 64 $22,500

1.3 FY 24-25 Report 48 $15,000

1.4 FY 25-26 Report 48 $15,000

1.5 FY 26-27 Report 48 $15,000

1.5 Final Report 80 $25,000
TASK 1. YEAR TOTALS 120 $39,500 120 $39,500 200 $64,500 Task 2
Program Launch
FY 2023-2024
(May-Sept Extension only) FY 2024 - 2025 FY 2025 - 2026 FY 2026 - 2027

1.1 Revisions to Implementation
Guide, Internal Program
Workflow, Process Flow for
Member Agencies
Amendment 1 does not
provide additional budget
to this task
80 $20,000

TASK 2. YEAR TOTALS 80 $20,000
Task 3
Program Outreach Events
FY 2023-2024
(May-Sept Extension only) FY 2024 - 2025 FY 2025 - 2026 FY 2026 - 2027 Outreach Event Amendment 1 does not
provide additional budget
to this task
48 $12,000
Outreach Event 48 $12,000
Outreach Event 48 $12,000
TASK 3. YEAR TOTALS 48 $12,000 48 $12,000 48 $12,000
Task 4 FY 2023-2024
(May-Sept Extension only) FY 2024 - 2025 FY 2025 - 2026 FY 2026 - 2027 Technical Assistance
# of
Engagement
s
Maximum
Cost
# of
Engagements
Maximum
Cost
# of
Engagements
Maximum
Cost
# of
Engagements
Maximum
Cost

4.1 Fleet Plan 5 $65,000 10 $178,000 10 $171,000 10 $171,000

4.2 Charging Infrastructure Plan 5 $150,000 10 $396,000 10 $382,000 10 $382,000

4.3 Additional As-Needed Tasks:
- Block Grants (1/month)
- Coordination of 3CE Follow-On Programs
5 $21,375 12 $45,600 12 $45,600 12 $45,600
TASK 4. YEAR TOTALS $236,375 $619,600 $598,600 $598,600 TOTALS BY FISCAL YEAR FY 2023-2024 FY 2024 - 2025 FY 2025 - 2026 FY 2026 - 2027 EXISTING PROGRAM BUDGET $250,000
ADDITIONAL PROGRAM BUDGET $236,375 $691,100 $650,100 $675,100 TOTAL PER FISCAL YEAR $486,375 $691,100 $650,100 $675,100 TOTAL BUDGET (2024-2027) $2,502,675
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Table B2
Task 4: Technical Assistance Fee Schedule per Engagement

4.1 Fleet Plan
Max Cost per
Engagement
Expected # of Participants
Amendment is for up to 35 Fleets
For fleets with up to 400 assets $13,000 25
For fleets with up to 800 assets $20,000 7
For fleets with up to 2,000 assets $40,000 3
Task 4.1 Not to Exceed Total $520,000

4.2 Infrastructure Plan

4.2.1 Charging Needs Assessment
For fleets with up to 400 assets $13,000 25
For fleets with up to 800 assets $20,000 7
For fleets with up to 2,000 assets $40,000 3

4.2.2 Charging Infrastructure Site Designs (per site)
For sites with up to 40 charging stations $14,000 25
For sites with up to 80 charging stations $21,000 7
For sites with up to 200 charging stations $41,000 3

4.2.3 Charging Schedule & Optimization Plan (per site) $6,000 35 Amendment 1: May 2024 through September 2027 35 Total Fleets DocuSign Envelope ID: 2E69F975-1C3C-4432-BA72-10522CC4DC5D

4/24/2024 15 Contract Number: EP-2024-026
Exhibit C: Procedures for Unauthorized Release of Covered Information SCOPE
CONTRACTOR hereby agrees to adhere to these Procedures for detecting and reporting the unauthorized release of Covered Information, including Protected Personal Information (“PPI”).

These Procedures apply to the following unauthorized release activities:

1. Unauthorized access

2. Unauthorized destruction

3. Unauthorized use

4. Unauthorized modification

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

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

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

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

1. Provide or bill for electrical power or gas,

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

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

4. Plan, implement, or evaluate demand response, energy management, or energy efficiency programs under contract with a Community Choice Aggregator or and Electrical Service Provider (when providing service to residential or small commercial customers), under contract with the DocuSign Envelope ID: 2E69F975-1C3C-4432-BA72-10522CC4DC5D

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Commission, or as part of a Commission authorized program conducted by a governmental entity under the supervision of the Commission.

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

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

Responsible Parties -- 3CE, CONTRACTOR, and any staff, employees, or sub consultants contracted by 3CE or CONTRACTOR.

PROCEDURE
Detecting and Reporting of Unauthorized Releases

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

2. Any request by any non-Covered Entities, for access to Covered Information must be reviewed and approved by an 3CE manager level employee to ensure no unauthorized or inadvertent release of Covered Information.

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

4. Any discovery of any unauthorized release of Covered Information must be reported to 3CE within one week of detection.

Unauthorized Release Handling Procedure

1. The discovering party after detecting, or discovery of, the unauthorized release of Covered Information must contact 3CE immediately.

2. CONTRACTOR will quantify and validate the type and extent of unauthorized release and report that information to 3CE in writing with sufficient detail for 3CE to determine the extent and impact of the unauthorized release.

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

Review and Training

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

2. Any proposed changes to these Procedures shall be provided in writing to 3CE.

DocuSign Envelope ID: 2E69F975-1C3C-4432-BA72-10522CC4DC5D

Staff Report Item 10
TO: 3CE Operations Board of Directions
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Catherine Stedman, Chief Communications Officer SUBJECT: Consider approving an agreement with Sacramento Municipal Utility District (SMUD) in an amount not to exceed $916,041.00 with an initial delivery term of three (3) years; and (2) an agreement with Salesforce in an amount not to exceed $183,192.45 with an initial delivery term of three (3) years; and (4) and authorize the CEO to execute both agreements
DATE: May 8, 2024
RECOMMENDATION:

This recommends that the 3CE Operations Board of Directors consider approving an agreement with Sacramento Municipal Utility District (SMUD) in an amount not to exceed $916,041.00 with an initial delivery term of three (3) years; and (2) an agreement with Salesforce in an amount not to exceed $183,192.45 with an initial delivery term of three (3) years; and (4) and authorize the CEO to execute both agreements.

BACKGROUND:

Since 2020, 3CE has relied on a Customer Relationship Management (CRM) platform, PowerPath, developed by Aiqueous, LLC and built on Salesforce, Inc. cloud-based CRM software, to store, track, and analyze customer data, including participation in Energy Programs and program application processing. 3CE’s CRM is extensively used by staff in Communications and Outreach and Energy Programs.

In response to limitations presented by its current CRM platform, 3CE issued a Request for Proposals (RFP) in November 2023 seeking a new Salesforce-based CRM solution to serve the agency’s expanding operational needs.

Ten separate vendors submitted proposals, which were evaluated by a panel of seven 3CE staff members across five departments. The vendors were evaluated on their qualifications, experience, pricing, and demonstrated capacity to fulfill the scope of work. Interviews were additionally held with each of the respondents. SMUD ranked the highest among vendors and received the panel’s recommendation.

DISCUSSION/ANALYSIS:

The adoption of a new CRM system addresses critical gaps in 3CE’s ability to accurately gather, organize, analyze, and apply data to improve customer service and internal efficiencies and achieve reduced operational costs starting in the third year. By investing in SMUD’s CRM solution, 3CE will ensure a future-proof infrastructure that enhances the customer experience and streamlines backend processing, ultimately supporting our mission to serve our community with clean and renewable energy and to provide direct investment in our customers’ ability to electrify and individually contribute to emission reductions and a sustainable energy future.
3CE’s operational needs have surpassed the capabilities of its existing CRM. The current CRM system presents several key functional limitations, including:

1. Limited ability to group collective accounts (customers with more than one account and/or meter) under a master or “parent” account;

2. Limited ability to run reports based on criteria including customer load or rate class and to filter by geographic location or demographic information; and

3. Limited ability to integrate – without manual intervention – new or revised Energy Programs web-based application forms with data to verify customer status and past programs participation.

Under the existing platform, 3CE’s Energy Programs have delayed applications during the fiscal year close to ensure program design improvements were reflected through the web-based application forms and that related data was appropriately integrated into the CRM. This annual pause and subsequent relaunching of programs has been met with customer confusion, increased calls placed to 3CE’s customer service center, and require substantial staff time spent to update outgoing communication materials, announce, and publicize relaunch dates, manage applications received during the intervening period, and beta-test interaction with the CRM system.

Moreover, 3CE’s current platform required vendor support to make even routine system improvements.

This heavy reliance on direct vendor support created an ongoing challenge of repeated unplanned contract amendments to ensure the system would operate. For example, in 2021, the original contract for the platform was amended to extend its term to September 2023. By October 2023, the contract had been amended three more times to adjust not-to-exceed amounts for additional, unanticipated support hours. The SMUD CRM provides greater user autonomy which will reduce reliance on outside expertise.

It additionally offers off-the-shelf functionality for many of the items that require custom programming services in the current system.

SMUD's demonstrated capacity to fulfill the comprehensive scope of work required by 3CE was critical to the selection of a new CRM platform and vendor. SMUD's staff, including project managers, developers, and IT operations leaders, follow a structured approach to deliver complex CRM solutions that are both scalable and tailored to specific operational needs. The RFP evaluation found that SMUD adhered to best practice standards for risk assessment, detailed scheduling, and budget management.

SMUD’s experience implementing Salesforce CRM solutions is demonstrated by their longstanding service as a utility provider and CRM developer for various California CCAs, such as Valley Clean Energy and Ava Community Energy. Their past projects include tailored CRM systems that support billing and data management, customer interactions, and program management.

SMUD scored highest among all vendors in the key financial categories of proposal amount, price per hour, total hours, competitiveness of pricing model, clarity and transparency of costs, and cost effectiveness.

The development and implementation of the SMUD CRM represents a significant upfront cost of $445,000 in the first year and nearly $40,000 in the second. This initial investment will improve customer experiences and add increased automation to reduce 3CE staff engagement in routine tasks.

Beginning in year three the ongoing support, and maintenance costs, and Salesforce licenses are estimated at $215,000, representing an annual savings of $25,000. Additionally, the SMUD CRM system’s increased automation and in-house customization capabilities will present substantial efficiencies, including reduced staff time and improved facilitation of data sharing across departments.

SMUD will launch improvements to the Energy Programs application process by the start of the new fiscal year, avoiding future program shut down periods. The scope of work for SMUD includes the following project delivery milestones:

TASK COMPLETION DATE
LAUNCH ENERGY PROGRAMS September 30, 2024
INTEGRATE CRM WITH CUSTOMER DATABASE December 31, 2024
COMPLETE OVERALL LAUNCH OF CRM December 31, 2024
MANAGE CRM April 30, 2027
To ensure a seamless transition, the SMUD CRM launch will occur with Aiqueous’ current CMS platform running in parallel. Should further refinements of the CMS be required during the first six months of launch, daily operations will not be impacted.

FISCAL IMPACT:

The fiscal impact of the CRM project agreement with SMUD will not exceed $916,041.00 over the three-year term of the agreement. The necessary Salesforce License Agreement will not exceed $183,192.45 over the three-year term of the agreement.

Current fiscal year expenditures are within the FY23-24 Budget and future expenses will be budgeted as appropriate.

CONCLUSION:

Approval of this agreement will advance 3CE’s ability to manage customer relationships with data, build a complete picture of customers that can be analyzed, and improve customers’ experience in applying to energy programs.

ATTACHMENT(S):

1. CRM Implementation Agreement between SMUD and 3CE

2. Salesforce License Agreement

5/1/2024 1 Contract Number: EP-2024-025

CENTRAL COAST COMMUNITY ENERGY

SACRAMENTO MUNICIPAL UTILITY DISTRICT

SERVICES AGREEMENT
This Agreement is made by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Sacramento Municipal Utility District (hereinafter “CONTRACTOR”), a California municipal utility district located at 6301 S St, Sacramento, CA 95817. 3CE and CONTRACTOR may be individually referred to herein as “Party” or collectively as “Parties.”
In consideration of the mutual covenants and conditions set forth in this Agreement, the Parties agree as follows:

1. GENERAL DESCRIPTION

1.1. 3CE hereby engages CONTRACTOR to perform, and CONTRACTOR hereby agrees to perform, the services described in Exhibit A in conformity with the terms of this Agreement. The goods and/or services are generally described as: Customer Relationship Management (CRM) Implementation.

2. PAYMENT PROVISIONS

2.1. 3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B, subject to the limitations set forth in this Agreement. The total amount payable by 3CE to CONTRACTOR under this Agreement shall not exceed the sum of $916,041.00.

3. TERM OF AGREEMENT

3.1. The term of this Agreement is from [the date of the last signature] until [April 30, 2027] unless sooner terminated pursuant to the terms of this Agreement. This Agreement is of no force or effect until signed by both the CONTRACTOR and 3CE, with 3CE’s execution to be last in time.

CONTRACTOR may not commence work under this Agreement before 3CE signs this Agreement.

3.2. Each Term shall automatically renew for subsequent periods of the same length as the initial Term unless either party gives the other written notice of termination at least six (6) months prior to expiration of the then-current Term. In the event of CONTRACTOR’s termination, CONTRACTOR agrees to provide necessary transition services at 3CE’s election, subject to a separate, good faith negotiated scope and CONTRACTOR fees under a Transitional Services Agreement.

4. SCOPE OF SERVICES AND ADDITIONAL PROVISIONS

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

4.1.1.Exhibit A: Scope of Services
DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

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4.1.2.Exhibit B: Payment Terms

4.1.3.Exhibit C: Procedures for Unauthorized Release of Covered Information

5. PERFORMANCE STANDARDS

5.1. CONTRACTOR warrants that CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors performing services under this Agreement are specially trained, experienced, competent, and appropriately licensed to perform the work and deliver the services required under this Agreement and are not employees of 3CE or immediate family of an employee of 3CE.

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

5.3. CONTRACTOR shall furnish, at its own expense, all materials, equipment, and personnel necessary to carry out the terms of this Agreement, except as otherwise specified in this Agreement. CONTRACTOR shall not use 3CE premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement.

6. PAYMENT CONDITIONS

6.1. CONTRACTOR billing rates shall remain firm for the initial term of the Agreement and, thereafter, may be adjusted upon agreement of the parties and written amendment of this contract. 3CE does not guarantee any minimum or maximum amount of dollars to be spent under this Agreement.

6.2. Negotiations for rate changes shall be commenced, by CONTRACTOR, a minimum of ninety days (90) prior to the expiration of the Agreement. Rate changes are not binding unless mutually agreed upon in writing by 3CE and the CONTRACTOR as an amendment of this contract.

6.3. Invoices shall be submitted monthly on a form acceptable to 3CE and provide sufficient detail, as determined by 3CE, of services rendered for the invoiced period.

6.4. 3CE shall certify the invoice for payment in either the amount requested, or in such other amount as 3CE determines is due in conformity with this Agreement. Invoices shall be certified and paid within 45 days of submission to 3CE, unless subject to the meet and confer process.

7. TERMINATION

7.1. During the term of this Agreement, 3CE may terminate the Agreement for any reason by giving written notice of termination to the CONTRACTOR at least thirty (30) days prior to the effective DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

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date of termination. Such notice shall set forth the effective date of termination. In the event of such termination, the amount payable under this Agreement shall be reduced in proportion to the services provided prior to the date of termination.

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

8. INDEMNIFICATION

8.1. CONTRACTOR shall indemnify, defend, and hold harmless 3CE, its Directors, Board members, officers, agents and employees from any claim, liability, loss, injury or damage to the extent arising out of, or is in connection with, the negligent performance of the services under this Agreement by CONTRACTOR and/or its agents, employees or sub-contractors, excepting only loss, injury or damage caused by the negligence or willful misconduct of personnel employed by 3CE. It is the intent of the parties to this Agreement to provide the broadest possible coverage for 3CE. The CONTRACTOR shall reimburse 3CE for all costs, attorneys’ fees, expenses and liabilities incurred with respect to any litigation in which the CONTRACTOR is obligated to indemnify, defend and hold harmless 3CE under this Agreement.

8.1.1.The CONTRACTOR’s selection of counsel to satisfy CONTRACTOR’s defense and hold harmless obligation as set forth in section 8.1 above, shall be subject to review and approval by 3CE, which shall not unreasonably withhold its approval.

8.1.2.Notwithstanding any other provision of this Agreement, 3CE shall be entitled to participate fully in the defense of any claim or action.

8.1.3. Notwithstanding the foregoing and anything to the contrary, CONTRACTOR shall not be liable for indirect, special, incidental, or consequential damages (including, without limitation, lost revenues or profits), except data loss resulting from CONTRACTOR’s negligence. In the event of such data loss, CONTRACTOR acknowledges its liability and agrees that such claims shall be subject to, and included within, the total liability cap of one million dollars ($1,000,000) in the aggregate during the term of this Agreement, including any indemnification obligation. This provision reaffirms the importance of data protection and security as mutual priorities under this agreement."

9. INSURANCE REQUIREMENTS

9.1. Prior to commencement of this Agreement, the CONTRACTOR shall provide a “Certificate of Insurance” or letter certifying that commercial insurance or self-insurance coverage as required herein has been obtained. Individual endorsements executed by the insurance carrier shall DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

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accompany the certificate. In addition, the CONTRACTOR upon request shall provide a certified copy of the policy or policies. This verification of coverage shall be sent to 3CE.

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

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

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

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

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

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

9.4. Commercial general liability and automobile liability policies shall provide an endorsement naming 3CE, its Directors, Board members, officers, agents, and employees as Additional Insureds with respect to liability arising out of the CONTRACTOR’S work, including ongoing and completed operations, and shall further provide that such insurance is the primary insurance DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

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to any insurance or self-insurance maintained by 3CE and that the insurance of the Additional Insureds shall not be called upon to contribute to a loss covered by the CONTRACTOR’S insurance.

9.5. 3CE acknowledges that CONTRACTOR as a public entity can, pursuant to California Government Code §990, satisfy the coverage requirements set forth herein with a combination of self-insurance and self-insured pool insurance coverage.

10. RECORD AND CONFIDENTIALITY

10.1. CONTRACTOR and its officers, employees, agents, and subcontractors shall comply with any and all federal, state, and local laws, which provide for the confidentiality of records and other information. CONTRACTOR shall not disclose any confidential records or other confidential information received from 3CE or prepared in connection with the performance of this Agreement, unless 3CE specifically permits CONTRACTOR to disclose such records or information or is otherwise required to be disclosed by law. CONTRACTOR shall promptly transmit to 3CE any and all requests for disclosure of any such confidential records or information. CONTRACTOR shall not use any confidential information gained by CONTRACTOR in the performance of this Agreement except for the sole purpose of carrying out CONTRACTOR’s obligations under this Agreement.

10.1.1. Confidential Information specifically includes Covered Information (as defined in Exhibit C), including Protected Personal Information (“PPI”) that identifies, relates to, describes, or is capable of being associated with, or could reasonably be linked, directly or indirectly, with a consumer, household, or customer account. All such Covered Information and PPI must fully be protected from disclosure as set forth in California Public Utility Commission Decision D.12-08-045. In the event of an unauthorized release of Covered Information and PPI, CONTRACTOR shall comply with Exhibit C, Procedures for Unauthorized Release of Covered Information.

10.2. Upon expiration or termination of this Agreement, CONTRACTOR shall return to 3CE, or if authorized in writing by 3CE, destroy any 3CE records which CONTRACTOR used or received from 3CE to perform services under this Agreement.

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

10.4. 3CE shall have the right to examine, monitor and audit all records, documents, conditions, and activities of the CONTRACTOR and its subcontractors related to services provided under this Agreement. Pursuant to Government Code section 8546.7, if this DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

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Agreement involves the expenditure of public funds in excess of $10,000, the parties to this Agreement may be subject, at the request of 3CE or as part of any audit of 3CE, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.

10.5. 3CE shall have a royalty-free, exclusive and irrevocable license to reproduce, publish, and use, and authorize others to do so, all original computer programs, writings, sound recordings, pictorial reproductions, drawings, and other works of similar nature produced in the course of or under this Agreement. CONTRACTOR shall not publish any such material without the prior written approval of 3CE.

10.6. On a bi-annual basis as commercially reasonable, CONTRACTOR and 3CE may meet to review CONTRACTOR’s data security processes and policies to ensure their adequacy in protecting 3CE data and Covered Information as defined in Exhibit C.

10.7. Proprietary Rights: Upon project completion, 3CE will retain full ownership and access to all product developed applications, configurations, and data with the Salesforce platform.

Nothing precludes CONTRACTOR from using similar methods to create applications, configurations and data schemas for use by CONTRACTOR or CONTRACTOR’S other clients.

11. NON-DISCRIMINATION

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

12. INDEPENDENT CONTRACTOR

12.1. In the performance of work, duties, and obligations under this Agreement, CONTRACTOR is at all times acting and performing as an independent contractor and not as an employee of 3CE. There shall be no offer, expectation or obligation of employment with 3CE and no offer, expectation, or obligation to receive from 3CE any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits for CONTRACTOR or its employees by virtue of this Agreement or activities thereunder. CONTRACTOR shall be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of CONTRACTOR’s performance of this Agreement. In connection therewith, CONTRACTOR DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

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shall defend, indemnify, and hold 3CE harmless from any and all liability which 3CE may incur because of CONTRACTOR’s failure to pay such taxes.

13. NOTICES

13.1. Notices required under this Agreement shall be delivered personally or by first-class postage pre-paid mail to 3CE and CONTRACTOR’S contract administrators at the addresses listed below:

Central Coast Community Energy SMUD
Chief Financial Officer Ali Crawford
70 Garden Court, Suite 300 6301 S Street
Monterey, Ca 93940 Sacramento, Ca 95835

14. MISCELLANEOUS PROVISIONS

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

14.2. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by 3CE and the CONTRACTOR.

14.3. Waiver. Any waiver of any terms and conditions of this Agreement must be in writing and signed by 3CE and the CONTRACTOR. A waiver of any of the terms and conditions of this Agreement shall not be construed as a waiver of any other terms or conditions in this Agreement.

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

14.5. Disputes. CONTRACTOR shall continue to perform under this Agreement during any dispute.

14.6. Assignment and Subcontracting. The CONTRACTOR shall not assign, sell, or otherwise transfer its interest or obligations in this Agreement without the prior written consent of 3CE.

None of the services covered by this Agreement shall be subcontracted without the prior written approval of 3CE. Notwithstanding any such subcontract, CONTRACTOR shall continue to be liable for the performance of all requirements of this Agreement.

14.7. Successors and Assigns. This Agreement and the rights, privileges, duties, and obligations of 3CE and CONTRACTOR under this Agreement, to the extent assignable or DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

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delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, and heirs.

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

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

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

14.11. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California. Any legal action shall be venued in the County of Monterey.

14.12. Non-exclusive Agreement. This Agreement is non-exclusive and both 3CE and CONTRACTOR expressly reserve the right to contract with other entities for the same or similar services.

14.13. Construction of Agreement. 3CE and CONTRACTOR agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement.

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

14.15. Authority. Any individual executing this Agreement on behalf of 3CE or the CONTRACTOR represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement.

14.16. Integration. This Agreement, including the exhibits, represent the entire Agreement between 3CE and the CONTRACTOR with respect to the subject matter of this Agreement and shall supersede all prior negotiations, representations, or agreements, either written or oral, between 3CE and the CONTRACTOR as of the effective date of this Agreement, which is the date that 3CE signs the Agreement.

14.17. Interpretation of Conflicting Provisions. In the event of any conflict or inconsistency between the provisions of this Agreement and the Provisions of any exhibit or other attachment to this Agreement, the provisions of this Agreement shall prevail and control.

DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

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SIGNATURE OF THE PARTIES:

Sacramento Municipal Utility District Central Coast Community Energy BY:__________________________________ BY:______________________________________ Brandy Bolden Robert M. Shaw
Date: ____________________________ Date: ____________________________ Approved as to Form
BY:______________________________________
Charles McKee, General Counsel
Date: ____________________________
Approved as to Financial Terms
BY:______________________________________
Dewayne Woods, Chief Financial Officer
Date: ____________________________
DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD 5/1/2024

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Exhibit A: Scope of Services
Scope of Work for Salesforce CRM Implementation

1. Project Overview

1.1 Definitions
The following terms have the meanings set forth below:

Integration refers to the process by which different systems, software, and technologies are brought together and made to function as a cohesive whole.

CRM (Customer Relationship Management) denotes a system or platform used by a Party to manage and analyze customer interactions and energy programs data, with the goal of improving customer service relationships, assisting in customer retention, and driving energy program participation.

Customer Accounts are records or profiles created and maintained by a Party that contain detailed information about customers, including personal information, transaction history, , used for the purpose of managing customer relationships and providing personalized services.

Advanced Tree Aggregation refers to a sophisticated method used in data analysis and database management where hierarchical relationships within data are identified and organized in a tree-like structure, enabling efficient data aggregation, analysis, and reporting.

Dashboarding Functionality means the capability of Salesforce to provide visual displays of key performance indicators (KPIs) and metrics, using data visualization tools to compile and present information.

Data Warehouse denotes a centralized repository for storing vast amounts of data from various sources within an organization, structured in a way that facilitates query and analysis, and supports business intelligence activities including reporting, data mining, and analytics.

Data Management refers to the practices, processes, and policies involved in the validation, protection, and processing of data to ensure the accessibility, reliability, and timeliness of the data for its users.

User Interface (UI) means the point of interaction between a user and a digital device or software, including the visual design, layout, and elements that enable the user to interact with the functionality and features of the device or software.

API (Application Programming Interface) refers to a set of protocols, tools, and definitions for building application software and services, enabling communication DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

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between different software applications by defining methods of requesting and sending data.

1.2 Purpose: Central Coast Community Energy (3CE) requires the services of the CONTRACTOR (SMUD) to enhance its operational capacities through the design, implementation, and integration of a Salesforce CRM solution tailored to 3CE's needs. This encompasses account management, mass mailing data integration, energy program application creation, processing, and tracking, and CRM functionalities to support 3CE's growing operational requirements.

1.3 Project Objectives: 3CE currently leverages a Salesforce CRM system that requires enhancement to better serve our expanding operational demands. Critical areas for improvement and support include Key Accounts reporting and Energy Programs management, which necessitate a more scalable and customizable platform with integrated Salesforce capabilities.

Advanced Account Hierarchy Management: Enhancing use of Salesforce for managing a complex hierarchy of customer accounts. This enhancement is key for reporting, outbound communication, and effective oversight across our diverse customer base. This includes:
- Consolidating multiple account names into a principal account for streamlined management.
- Expanding visibility to include all related activities, attributes, and events under the principal account.
- Implementing advanced tree aggregation features for a clearer hierarchical account overview.

Mass Mailer Data Integration: Salesforce's integration with mass mailer data is a priority, particularly for critical campaigns, alerts, and emergency communications. This includes:
- Provide the ability to send out batch emails to customers and record the interaction on the account.
- Provide the ability for users to create customer lists for marketing purposes. - Importing mass mailing data from 3CE’s data warehouse into the CRM.

Optimized Energy Program Administration: The Salesforce’s role in administering energy programs is set for further optimization. The plan to use the CRM includes:
- Create and integrate webforms to collect energy program applicants and create the necessary build to manage approvals and energy program funds. - Ensure all Energy Programs web forms, approval workflows, and notifications applications to be ready by 10/01/2024.

Automated Data Integration: Automated integration of customer usage and billing data via an API built by 3CE between 3CE’s data warehouse into Salesforce. This capability will includes:
- Leverage 3CE’s API to exchange data between 3CE’s data warehouse and Salesforce. - Provide real-time data for improved decision-making.

DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

5/1/2024 12 Contract Number: EP-2024-025
- Support our goals through efficient data management.

Enhanced Customer Relationship Management (CRM): Upgrading CRM system within Salesforce is essential for maintaining our standards of customer engagement. The upgrade will include:
- Offer personalized service and efficient resolution of customer issues. - Deliver insights into service trends and customer satisfaction metrics through reports and dashboards.
- Enable the bulk uploading of events and activities relevant to multiple accounts. - Generate comprehensive engagement reports with detailed event data, segmented by customer type and other key attributes.
- Add flags for identifying and prioritizing high- value accounts.

2. Project Deliverables
Task 1 – Kickoff & Discovery
Organize kickoff meeting, identify key participants, conduct and document meeting, bi-weekly progress checks.

Key CONTRACTOR Deliverables by subtask:

1.1 Prepare materials and agenda for the initial project meeting.

1.2 Identify essential stakeholders and ensure their attendance at kick-off meeting.

1.3 Suggest potential key participants for kick-off meeting.

1.4 Conduct an initial meeting to officially start the project.

1.5 Participate in kick-off meeting to discuss project details.

Task 2 – Develop Implementation Plan
Draft and finalize CRM setup and data integration plan.

Key CONTRACTOR Deliverables by subtask:

2.1 Draft and distribute an initial plan for CRM implementation and data integration.

2.2 Modify the plan based on feedback received.

2.3 Provide update on the draft plan.

2.4 Complete, confirm, and endorse the final draft of the implementation plan.

Task 3 – Develop CRM Database
Gather requirements, develop and demonstrate UI, conduct usability testing, and finalize UI.

Key CONTRACTOR Deliverables by subtask:

DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

5/1/2024 13 Contract Number: EP-2024-025

3.1. Collect, document, and submit CRM specific needs and requirements for consideration.

3.2. Build and show a working model of CRM’s user interface based on requirements.

3.3. Modify the UI based on initial feedback.

3.4. Provide update on the preliminary UI.

3.5. Complete, confirm, and endorse the final design of the preliminary UI.

3.6. Develop and distribute a plan to research and improve the CRM’s UI.

3.7. Modify the research plan based on feedback.

3.8. Provide update on the UI research plan.

3.9. Complete, confirm, and endorse the final UI research plan.

3.10. Develop and distribute a script for testing the CRM’s usability.

3.11. Modify the usability script based on feedback.

3.12. Provide update on usability script.

3.13. Complete, confirm, and endorse the final usability script.

3.14. Program usability testing script.

3.15. Initiate usability soft launch.

3.16. Modify usability test based on the soft launch feedback.

3.17. Initiate full usability test.

3.18. Analyze recordings from usability testing to identify improvements.

3.19. Develop and distribute finds and recommendations from usability testing.

3.20. Modify the usability research summary based on feedback received.

3.21. Provide update on usability research summary.

3.22. Complete, confirm, and endorse the final usability research summary.

3.23. Implement final changes to the CRM’s UI based on research and feedback.

3.24. Provide live demonstration of the final version of CRM’s UI.

3.25. Confirm and endorse the final design of CRM’s UI.

Task 4 – Integrate CRM with Database
Plan and execute integration with data warehouse through API coupling to 3CE’s built API.

Key CONTRACTOR Deliverables by subtask:

4.1. Develop and distribute an initial plan for integrating CRM with data warehouse.

4.2. Modify draft data warehouse integration plan based on feedback received.

4.3. Provide updated for integration plan.

4.4. Complete, confirm, and endorse the final data warehouse integration plan.

4.5. Integrate the CRM with current database through an API coupling to 3CE’s built API.

4.6. Incorporate webforms to support program management.

4.7. Implement specific customizations to the CRM as required.

4.8. Implement notifications, workflow approvals and budget management.

Task 5 – Train Personnel
Develop and deliver training plan and materials, document feedback. By the completion of this task, provide all resources required to properly use the CRM platform.

DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

5/1/2024 14 Contract Number: EP-2024-025
Key CONTRACTOR Deliverables by subtask:

5.1. Develop and distribute a comprehensive strategy for CRM user training.

5.2. Modify the training plan based on feedback.

5.3. Provide update on the training plan.

5.4. Complete, confirm, and endorse the training plan.

5.5. Develop CRM training materials, including self-help resources.

5.6. Conduct training sessions for CRM users.

5.7. Summarize and distribute the outcome of the training, including any feedback received.

5.8. Modify the training summary report based on feedback.

5.9. Provide update on training summary report.

5.10. Complete, confirm, and endorse the training summary report.

Task 6 – Develop Communications Plan
Create and implement communication and SLA plan. By the completion of this task, update the SLA to incorporate all necessary support and administrative services.

Key CONTRACTOR Deliverables by subtask:

6.1. Develop and distribute a CRM-related communications and support plan.

6.2. Modify the communications and support plan based on feedback.

6.3. Provide update to the plan.

6.4. Complete, confirm, and endorse the the communications plan.

6.5. Execute the approved communication plan.

6.6. Draft and distribute for review a service level agreement (SLA) plan for CRM services.

6.7. Modify the SLA plan based on feedback received.

6.8. Complete, confirm, and endorse the the SLA plan.

Task 7 – Launch CRM
Deploy CRM, conduct reporting, and administer surveys. The completion of all CRM tasks must encompass all essential customer and energy program objectives, as outlined in Section 1.2 of the Project Objectives.

Key CONTRACTOR Deliverables by subtask:

7.1. Officially deploy the CRM for operational use.

7.2. Develop and distribute a template for reporting CRM metrics and performance.

7.3. Modify the report template based on feedback.

7.4. Provide update for the reporting format.

7.5. Complete, confirm, and endorse the report format for regular use.

7.6. Generate and distribute weekly reports.

7.7. Respond to inquiries.

7.8. Develop and distribute a survey to gather feedback from CRM users.

7.9. Revise the survey based on preliminary feedback.

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5/1/2024 15 Contract Number: EP-2024-025

7.10. Provide update for the survey.

7.11. Complete, confirm, and endorse the survey.

7.12. Administer the survey among CRM users.

7.13. Compile a comprehensive report summarizing CRM deployment outcomes and feedback.

Task 8 – Manage CRM
Managing and stabilizing the CRM involves ensuring its efficient operation and resolving any issues post-implementation, thereby maintaining its role in managing customer contacts and energy programs. The administration of the CRM focuses on its daily operations and administration of the technical problems. In addition, this task has several enhancement projects aimed at refining the CRM's features and functionality to meet organizational needs better and improve overall performance.

Key CONTRACTOR Deliverables by subtask:

8.1. Stabilize CRM.

8.2. Administer CRM.

8.3. Implementation enhancement project.

DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

5/1/2024 16 Contract Number: EP-2024-025

3. Project Schedule

1.1. Project Schedule Overview: The deliverables will be achieved by CONTRACTOR conducting the following tasks by the appropriate due date mentioned below. The schedule assumes that we finalize requirements as of 6/31/2024 and that 3CE is responsive to deliverable approvals per mutually agreed detailed schedule. Any changes to the schedule must be reviewed and approved in writing by 3CE:

Tabel 1: Project Delivery Schedule
Task Title Subtask Completion Date
Task 1 - Kickoff & Discovery 1.1 through 1.5 5/31/2024
Task 2 - Develop Implementation Plan 2.1 through 2.4 6/31/2024 Task 3 - Develop CRM Database 3.1 through 3.5 8/30/2024

3.5 through 3.25 12/31/2024
Task 4 - Integrate CRM with Database 4.1 through 4.6 8/30/2024

4.7 through 4.8 12/31/2024
Task 5 - Train Personnel 5.1 through 5.6 9/30/2024

5.7 through 5.10 12/31/2024
Task 6 - Develop Communications
Plan 6.1 though 6.9 12/31/2024
Task 7 - Launch CRM 7.1 9/30/2024

7.2 though 7.13 12/31/2024
Task 8 - Manage CRM

8.1 12/31/2024

8.2 4/30/2027

8.3 12/31/2026
This project delivery schedule allows for the CRM deployment in FY 23-24,which includes Energy Programs applications continuing into FY 24-25. This involves all web forms, approval workflows, and notifications applications to be ready by 10/01/2024. . As indicated above, certain subtasks related to training of personnel, developing communication plan, and launch of CRM, which are not on a critical path for the deployment of program applications, will be completed by December 31st, 2024. Finally ongoing management of CRM and specific training of personnel will continue through the end of FY 26-

27. DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

5/1/2024 17 Contract Number: EP-2024-025

4. Service Level Agreement
Schedule
• Project Management: SMUD will provide a dedicated project manager to ensure a smooth project implementation.
• SMUD will provide project management and client management support from 9am to 5pm PST, M-F, excluding holidays.
• SMUD will create a detailed project deliverables list with description, responsible party, assumptions, and acceptance criteria.

Requirements
• SMUD will create a detailed requirements document approved by 3CE to guide development.

Technical Support
• SMUD will provide 150 hours of support each month for the first three months after launch to stabilize and optimize the system, and then 32 hours of support each month to administer the system.
• SMUD will schedule two large enhancement projects at 350 hours each over the three-year term, and three small enhancement projects at 40 hours each over the three-year term. • SMUD will provide a requests intake tool (Zendesk) for 24/7 submission of issues and requests. • For urgent issues submitted through Zendesk, we will respond to the request within 24 business hours. For non-urgent issues, we will respond within 48 business hours. • SMUD will provide technical support from 9am to 5pm PST, M-F, excluding holidays. • For infrastructure-related issues such as temporary outages and server failures, SMUD will collaborate with 3CE to resolve with Salesforce.
• For code-related issues such as breaks, bugs, defects, SMUD will work to fix code so that it functions according to approved requirements based on a priority level set by 3CE. • SMUD will use a priority model governing system enhancement, with break/fixes receiving Priority 1 status.
• SMUD will monitor system health, resource usage and performance metrics and provide regular weekly reports.
• Salesforce will determine system availability. But our experience with them over the past seven years, is greater than 99% availability.

DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

5/1/2024 18 Contract Number: EP-2024-025
Exhibit B: Payment Terms
SMUD will provide the deliverables outlined in Exhibit A. All tasks and associated work will be invoiced on a time and material basis, utilizing the billing rates provided. Tasks 1, 2, 3, 4, 5, 6 and 7, along with their respective deliverables, will be considered fully compensated once the not-to-exceed (NTE) amounts for each fiscal year (FY) are reached. Fiscal Year is defined as annually starting October 1st and ending September 30th. The NTE amounts are set as the Total amounts in Table 1. The billing rates will adhere to the figures presented in the table titled ‘SMUD Billing Rates’ for the entirety of the contract term. If a Task indicated in Tabel 1 is not completed within the fiscal year indicated, 3CE will undergo evaluation at the conclusion of the fiscal year to determine if changes to deliverable schedules is required. If so determined, 3CE can authorize in written approval a change in a specific fiscal year NTE amount.

Tabel 1: Fiscal Year Not-To-Exceed (NTE) Amounts
Task FY 23-24 FY 24-25 FY 25-26 FY 26-27
Task 1 - Kickoff & Discovery $ 1,530.00
Task 2 - Develop Implementation Plan $ 5,907.50
Task 3 - Develop CRM Database $ 243,865.00 $ 19,932.50
Task 4 - Integrate CRM with Database $ 174,377.50
Task 5 - Train Personnel $ 13,642.50 $ 5,892.50
Task 6 - Develop Communications
Plan $ 5,015.00
Task 7 - Launch CRM $ 24,379.75
$
23,730.00
Task 8 - Manage CRM $1740.00 $171,675.63 $154,382.81 $ 70,010.31 Total $ 465,402.25 $ 226,245.63
$
154,382.81
$
70,010.31
Note: Budget for SOW in years 3 and 4 assumes that the cost and effort for those years is mostly for CRM management and support. This includes form updates, system maintenance, and simple updates to the system.

DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

5/1/2024 19 Contract Number: EP-2024-025
Table 2: SMUD Billing Rates
SMUD Resource FY 23-24 FY 24-25 FY 25-26 FY 26-27
Hourly Rate $170 $180 $190 $200
For clarification and without altering or changing the maximum cost to 3CE set forth in Section 2.1 of the Agreement, the following provides estimated budget and schedule for completing payment for particular tasks identified in Exhibit A, Scope of Services.

Table 3: Estimated Budget by Project Schedule
Task Title Subtask
Completion
Date
Hours Estimated
Amount
Task 1 - Kickoff & Discovery 1.1 through 1.5 5/24/2024 9.00 $1,530.00 Task 2 - Develop Implementation
Plan 2.1 through 2.4 6/24/2024

34.75 $5,907.50
Task 3 - Develop CRM Database 3.1 through 3.5 8/30/2024 1,420.50 $ 243,865.00

3.5 through 3.25 12/31/2024 131.25 $19,932.50
Task 4 - Integrate CRM with
Database

4.1 through 4.6 8/30/2024 565.75 $ 96,177.50

4.7 through 4.8 8/30/2024 460.00 $ 78,200.00
Task 5 - Train Personnel 5.1 through 5.6 9/30/2024 96.25 $13,642.50

5.7 through 5.10 12/31/2024 17.25 $5,892.50
Task 6 - Develop Communications
Plan 6.1 though 6.9 12/31/2024

29.50 $5,015.00
Task 7 - Launch CRM 7.1 9/30/2024 143.41 $24,379.75

7.2 though 7.13 12/31/2024 133.50 $ 23,730.00
Task 8 - Manage CRM

8.1 12/31/2024 450.00 $76,500.00

8.2 4/30/2027 1,018.00 $ 167,680.00

8.3 9/30/2026 826.75 $ 153,588.75
DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

5/1/2024 20 Contract Number: EP-2024-025
Exhibit C: Procedures for Unauthorized Release of Covered Information SCOPE
CONTRACTOR hereby agrees to adhere to these Procedures for detecting and reporting the unauthorized release of Covered Information, including Protected Personal Information (“PPI”).

These Procedures apply to the following unauthorized release activities:

1. Unauthorized access

2. Unauthorized destruction

3. Unauthorized use

4. Unauthorized modification

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

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

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

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

1. Provide or bill for electrical power or gas,

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

3. Provide services as required by state or federal law or as specifically authorized by an order of the Commission, or
DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

5/1/2024 21 Contract Number: EP-2024-025

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

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

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

Responsible Parties -- 3CE, CONTRACTOR, and any staff, employees, or sub consultants contracted by 3CE or CONTRACTOR.

PROCEDURE
Detecting and Reporting of Unauthorized Releases

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

2. Any request by any non-Covered Entities, for access to Covered Information must be reviewed and approved by a 3CE manager level employee to ensure no unauthorized or inadvertent release of Covered Information.

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

4. Any discovery of any unauthorized release of Covered Information must be reported to 3CE within one week of detection.

Unauthorized Release Handling Procedure

1. The discovering party after detecting, or discovery of, the unauthorized release of Covered Information must contact 3CE’s Dir. of Finance(or another executive manager) immediately.

2. CONTRACTOR will quantify and validate the type and extent of unauthorized release and report that information to 3CE’s Dir. of Financein writing with sufficient detail for 3CE to determine the extent and impact of the unauthorized release.

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

DocuSign Envelope ID: E2D4A3E8-9425-4871-9F33-0630FDCFB3AD

5/1/2024 22 Contract Number: EP-2024-025
Review and Training

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

2. Any proposed changes to these Procedures shall be provided in writing to 3CE’s Dir. of Financefor their consideration.

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Salesforce, Inc.

Salesforce Tower
415 Mission Street, 3rd Floor
San Francisco, CA 94105
United States
ORDER FORM for Central Coast Community Energy (3CE)
Offer Valid Through: 5/10/2024
Proposed by: Viktoriya Berejnoy
Email: [email protected]
Quote Number: Q-08456496

ORDER FORM
Address Information
Bill To:
70 Garden Court suite 330
Monterey
CA, 93940
US - United States
Ship To:
70 Garden Court suite 330
Monterey
CA, 93940
US - United States
Billing Company Name: Central Coast Community Energy (3CE) Billing Contact Name: David Wing
Billing Email Address: [email protected]
Billing Phone: (831) 641-7238
Billing Fax:

Billing Language: English
Terms and Conditions
Contract Start Date*: 5/20/2024
Contract End Date*: 5/19/2027
Billing Frequency: Annual
Payment Method: Check
Payment Terms: Net 30
Billing Method: Email
Services
Services
Order
Start Date*
Order
End Date*
Order Term
(months)*
Monthly/
Unit Price** Quantity Total Price
Service Cloud - Enterprise Edition 5/20/2024 5/19/2027 36 USD 108.90 36 USD 141,134.40 Premier Success Plan 5/20/2024 5/19/2027 36 USD 776.24 1 USD 27,944.61 Event Monitoring 5/20/2024 5/19/2027 36 USD 392.04 1 USD 14,113.44 Total: USD 183,192.45
*If this Order Form is executed and/or returned to Salesforce by Customer after the Order Start Date above, Salesforce may adjust the Order Start Date and Order End Date, without increasing the Total Price, based on the date Salesforce activates the products and provided that the total term length does not change. Following activation, any adjustments to such Order Start Date and Order End Date may be confirmed by logging into Your Account, by reference to an order confirmation sent by Salesforce, and/or by contacting customer support. **The Monthly/Unit Price shown above has been rounded to two decimal places for display purposes. As many as eight decimal places may be present in the actual price. The totals for this order were calculated using the actual price, rather than the Monthly/Unit Price displayed above, and are the true and binding totals for this order.

Prices shown above do not include any taxes that may apply. Any such taxes are the responsibility of Customer. This is not an invoice. For customers based in the United States, any applicable taxes will be determined based on the laws and regulations of the taxing authority(ies) governing the "Ship To" location provided by Customer on this Order Form.

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Pricing Schedule
Product
Monthly/
Unit Price** Quantity For
Service Cloud - Enterprise Edition USD 108.90 36+
The pricing in the Pricing Schedule above (“Pricing Schedule”) reflects the monthly per-subscription fees for the applicable Service. In the event the Pricing Schedule sets forth tiered pricing, any such tiered pricing levels are based upon the Aggregate Total Number of active subscriptions of the relevant Service purchased. “Aggregate Total Number” as it relates to a subscription, is the aggregate total number of active subscriptions, purchased by the Customer executing this Order Form, commencing on the Contract Start Date of this Order Form, as measured at the time of execution of the applicable Order Form. If a single additional order raises the aggregate number of subscriptions for any Service listed in the Pricing Schedule above the threshold limits specified therein, only those subscriptions exceeding the new threshold are entitled to the reduced pricing. Only additional orders by Customer that are associated with this Order Form, for purchase of subscriptions to the same Service and edition as set forth in the Pricing Schedule, during the period commencing on the Contract Start Date and ending on the Contract End Date of this Order Form, are eligible for the applicable volume pricing levels under the Pricing Schedule. For clarity, restricted use subscriptions (those subscriptions that either have the term “Restricted Use” in the Service name, or are indicated as a Restricted Use Subscription in a Quote Special Term) are not included when determining the Aggregate Total Number of a full use subscription, and full use subscriptions are not included when determining the Aggregate Total Number of a restricted use subscription. Any price decreases shall have no effect on previously purchased subscriptions. Volume discounts do not accumulate across different Services or editions. Any renewals of the subscriptions purchased under this Order Form are not eligible for the Pricing Schedule unless expressly agreed to in writing between the parties in an applicable renewal Order Form.

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Tenant Information
Org Type Org Details Services Quantity
Salesforce Platform
Service Cloud - Enterprise Edition 36
Premier Success Plan 1
Event Monitoring 1
Purchase Order Information
Is a Purchase Order (PO) required for the purchase or payment of the products on this Order Form?(Customer to complete) [xxxxxxxx] No
[\porbtn1\]  Yes - Please complete below
PO Number: \ponum1\
PO Amount: \poamt1\
Upon signature by Customer and submission to Salesforce, this Order Form shall become legally binding unless this Order Form is rejected by Salesforce for any of the following reasons: (1) the signatory below does not have the authority to bind Customer to this Order Form, (2) changes have been made to this Order Form (other than completion of the purchase order information and the signature block), or (3) the requested purchase order information or signature is incomplete or does not match our records or the rest of this Order Form. Subscriptions are non-cancelable before their Order End Date. This Order Form is governed by the terms of the Salesforce MSA found at https://www.salesforce.com/company/msa.jsp, unless (i) Customer has a written MSA executed by Salesforce for such Services as referenced in the Documentation, in which case such written Salesforce MSA will govern or (ii) otherwise set forth herein. Additional information related to the Services may be found in the Documentation at https://sfdc.co/ptd. For the avoidance of doubt, the applicable MSA takes precedence over the Documentation.

Customer: Central Coast Community Energy (3CE)
Signature \s1\
Name \n1\
Business Title \t1\
Date \d1\

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Customer: Central Coast Community Energy (3CE)
Signature \s2\
Name \n2\
Business Title \t2\
Date \d2\
Customer: Central Coast Community Energy (3CE)
Signature \s3\
Name \n3\
Business Title \t3\
Date \d3\
Customer: Central Coast Community Energy (3CE)
Signature \s4\
Name \n4\
Business Title \t4\
Date \d4\

5 / 5
Customer: Central Coast Community Energy (3CE)
Signature \s5\
Name \n5\
Business Title \t5\
Date \d5\
Confidential and proprietary. © Copyright 2000-2022 Salesforce, Inc. All rights reserved.

Staff Report Item 11
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Mary Federico, Billing Operations and Rates Analyst SUBJECT: Report on efforts for Setting Rates Beginning Fiscal Year 2024-25 DATE: May 8, 2024
RECOMMENDATION:

This memorandum provides a report on efforts for setting rates beginning Fiscal Year 2024-25.

BACKGROUND:

In August 2023, 3CE issued a Request for Proposal (RFP) to contract a rate design consultant to complete a territory-wide Cost of Service (COS) study for the 3CE rate design process for calendar years (CYs) 2025 through 2027. In November 2023, the contract was executed with NewGen Strategies and Solutions, LLC. Since then, the Finance Department has provided ongoing updates on these rate-setting efforts.

The Operations Board received an update on November 8, 2023, while the Policy Board and Audit and Finance Committee received updates on February 21, 2024.

DISCUSSION/ANALYSIS:

There are five milestones in the rate-setting process. These steps include developing a revenue requirement, functionalizing costs into the function types defined by what the expense is used for, classifying costs as either fixed or variable, allocating costs, and rate design. 3CE completed a draft COS study incorporating the first four of the five steps and has begun the last step, rate design. The study results provide vital information to the analyses that flow through to the rate design and inform the recommendations to be brought to the Policy Board at the June 2024 meeting.

Revenue Requirement
The revenue requirement is established by first forecasting all expenses and costs incurred in the service of 3CE customers. A forecasted test year is established from the 2024 Fiscal Year (FY) Approved Budget and the 3CE forecasted load. The test year incorporates known and measurable adjustments to the base

year to approximate the financial and operational conditions expected in CYs 2025 through 2027. This includes the consideration of the Board approved 3CE reserve policies. Any contribution to the reserve needed to meet the target reserve levels is added to the projected expenses to complete the revenue requirements. 3CE evaluated the revenue requirements for CYs 2025 through 2027 and determined that utilizing CY 2025 as the single test year will lead to greater rate stability than a test year that averages all three CYs. The initial single test year totals approximately $748.5 million.

Functionalized and Classified Costs
The test year is then functionalized and classified. As a CCA, 3CE does not have transmission or distribution costs, so costs are functionalized into production, associated with the cost of energy (COE), or customer costs, associated with all other non-COE costs. The estimated revenue requirement is broken down into power supply costs, non-power supply costs, and contribution to reserve in the table below.

Single Year Test Year – CY 2025
Production Costs $676,668,593
Customer Costs $31,845,719
Contribution to Reserve $40,000,000
Total Revenue Requirement $748,514,312
Next, the functionalized costs are classified as fixed or variable. Fixed costs do not vary from customer to customer and are made up of customer costs and the portion of COE related to demand. For CCAs, the demand portion of COE comprises of Resource Adequacy (RA) costs. Variable costs are associated with COE costs related to hourly energy purchases and will vary from customer to customer, depending on their usage patterns. After functionalizing and classifying the draft test year, it was found that 37% of 3CE’s costs are related to fixed costs, and 63% are related to variable costs.

Allocating Costs
The functionalized and classified costs are then allocated to various customer classes based on their share of the fixed costs and their annual load profiles. Nine distinct customer classes have been identified, grouped by their load profiles. These include residential, small commercial, medium commercial, large commercial, small and medium agricultural, large agricultural, business electric vehicles, standby, and lighting.
3CE has evaluated the COS model as a single territory and with SCE and PG&E customers allocated separately. Staff will be recommending that the rates be designed as a single territory. This approach ensures that customer classes across the entirety of the 3CE territory are charged at the same rate regardless of which territory they reside. The table below shows the nine classes’ initial allocated revenue requirements under a single territory design. 3CE will continue to evaluate the competitiveness, equity, and stability of the nine classes and single territory rate design.

Next Steps
The last remaining step in the 3CE rate-setting process is rate design. An update to this report will be brought in May 2024 to the Audit & Finance Committee. The allocated costs will be reflected in a set of proposed rates for each rate code that 3CE serves and presented to the Policy Board for approval. In addition, 3CE expects to bring the recommendations related to the single test year, nine customer classes, and single territory rate design discussed above to the June 2024 Policy Board meeting.

CONCLUSION:

The 3CE rate design process uses the COS methodology to inform the building of rate values that will recover the necessary revenue requirements from each customer class. Designing rates with this methodology will maintain 3CE’s strong financial position while providing competitive and fairly allocated rates to its customers.

FISCAL IMPACT:

Receiving this report has no fiscal impact as no action is requested. Setting of rates will eventually determine the financial sustainability of 3CE.

ATTACHMENT(S):

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Standby Lighting
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Initial Revenue Requirement by Class

Staff Report Item 12
TO: Central Coast Community Energy (3CE) Operations Board of Directors FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Juan Lopez, Director of Finance
SUBJECT: FY 2023-24 Mid-Year Budget Forecast
DATE: May 8, 2024
RECOMMENDATION:

This memorandum provides the FY 2023-24 Mid-Year Budget Forecast.

BACKGROUND:

At its September 14, 2023, regular meeting, the Policy Board approved the 3CE FY 2023-24 Budget. The budget of $562.8 million, matched by $562.8 million in revenue, was a 27.0% increase from the prior year, predominantly due to the higher cost of energy (“COE”). Project delays, whole market volatility, and resource adequacy (“RA”) were the main drivers for the increased COE. The budget did not contain additions to reserves to maintain rates as low as possible for customers. The Budget did include two Pacific Gas & Electric (“PG&E”) service area cost-based rate adjustments that took effect on October 1, 2023, and January 1, 2024, to sustain the growing operating costs.

DISCUSSION/ANALYSIS:

The Mid-Year Budget Forecast estimates expenditures of $674.1 million, an increase of $11.3 million, or

2.0% over budget. Operating expenditures can be classified into two categories: energy and non-energy costs. Non-energy operating expenditures are projected at $35.6 million, compared to a budget of $42.5 million, a 16.2% variation. The lower costs are attributed to staffing vacancies, lower-than-expected professional services, and energy program incentive payments.

The COE expenditure is projected to be $548.4 million, compared to a budget of $530.8 million, an increase of 3.3%. The variance is largely attributed to an estimated $17.4 million increase in RA costs. As was reported at the September 14, 2023, Policy Board meeting, RA is a significant cost driver to COE costs, making up 30.6% of the projected COE. Regulatory changes exacerbated RA supply by limiting the

RA value assigned to renewables, adding a delivery component on imported RA, and increasing supply obligations. 3CE continues to deploy strategies toward RA compliance, including leveraging our Power Purchase agreements to maximize RA value and layering short and long-term contracts to hedge against price volatility.

The revenue forecast of $561.4 million is a $1.4 million, or 0.3%, negative variance compared to the budget of $562.8 million. Revenue from the sale of electricity is projected at $551.4 million, coming $5.0 million under budget, or 0.9%. Lower-than-anticipated customer load and lower Southern California Edison (“SCE”) rates in January 2024 are the reasons for the lower revenues. The total load for the year is forecasted to be 70,600 MWh lower than budget, a 1.4% variance. Other income, primarily comprised of investment revenue, is estimated at $10.0 million, or $3.6 million higher than budget.

Reserve Targets
3CE is working towards meeting its reserve targets set in the Financial Policies adopted by the Policy Board. These include the strategic reserve, the energy rate stabilization reserve, and the renewable energy innovation and initiatives reserve. Per the current budget, reserve levels should be at $270.8 million. However, by looking at these targets through unreserved cash and short-term investment balances and excluding funds for monthly operating costs and collateral holds from suppliers, 3CE only has about $187.7 million in available reserves or about 69.3% of reserve targets. The Finance Department will continuously monitor reserve targets for the coming years. As operating costs increase, 3CE will recommend reserve additions into its cost-of-service analysis and rate recommendations.

FISCAL IMPACT:

The Mid-Year Forecast estimates total revenue of $561.5 million, a 0.3% negative variance from budget, and $574.1 million in total expenditures, a 2% higher-than-budget variance, resulting in a net position decrease of $12.7 million. Because the Forecast is a mid-year estimation, unforeseen variables could decrease or increase the net operating results in the coming months. These variables could include energy market volatility, especially in the summer months, and lower or higher-than-estimated RA expenditures, and potentially regulatory compliance impacts.

CONCLUSION:

The Mid-Year Budget Forecast indicates minor variances in expenditures and revenues, but overall, FY 2023-24 is projected to be a strong year for 3CE while facing policy and market volatility. 3CE is concluding a cost-of-service analysis and completing the rate design for upcoming years, ensuring that 3CE will continue to have fiscal stability beyond the current fiscal year, including the growth of robust reserves. The Audit & Finance Committee and Policy Board will receive the Mid-Year Budget Forecast at their May 29, 2024, and June 26, 2024 meetings, respectively.