Operations Board of Directors
April 9, 2025
Consent Calendar
Approve the minutes from the February 21, 2025 special meeting of the Operations Board Approve and authorize the CEO to execute Amendment No. 2 to TRC Engineers, Inc. amended and restated standard services agreement to renew and amend the termination date, for a revised term of August 11, 2022 through September 30, 2027, to add additional services for code updates and outreach to engage new member agencies, and to increase the Agreement's amount by an additional $385,000 for a total not-to-exceed amount of $706,935 Adopt Resolution No. OB-2025-01 Establishing a Claims Procedure Pursuant to Government Code Section 93, consistent with Policy Board approval of Resolution No. PB-2025-01 Review, Approve, and Adopt a Revised 3CE Purchasing and Procurement Policy - Financial Policy (FP 8) Review, Approve, and Adopt a Revised 3CE Travel Policy – Financial Policy (FP 9)
Consent Calendar Continued
Ratify CalCCA annual membership dues payments for 3CE’s Fiscal Year 2024-2025 and authorize the CEO to pay CalCCA dues in an amount not to exceed $540,000 annually, through October 1, 2025 Financial report for the period October 1, 2024 through January 31, 2025 Investment Performance Report for the period of October 1, 2024 through December 31, 2024 FY 2023-2024 Audited Financials Report
Update on 3CE's Energy Programs
Regulatory Update
Power Charge Indifference Adjustment (PCIA) Overview
3CE Operations Board
April 9, 2025
4 Policy Board Directives:
PCIA Policy Goal
Public Utility Code Sections 366.1 and 366.2 require the CPUC to ensure that costs incurred on behalf of customers leaving the utility do not unfairly burden remaining utility customers. To create customer indifference, CCA and Direct Access customers, also called “departing load,” are required to pay a Power Charge Indifference Adjustment (PCIA).
PCIA in Concept
Legacy costs
Cca formations
Iou portfolio management
PCIA impact
Indifference is Fair & Reasonable
Without the PCIA, the remaining utility customers would need to assume costs that the IOUs incurred with the expectation of serving the customers that now receive electric service from CCAs or Direct Access providers.
PCIA Variables and Swings ($/kwh)
Volatility
PCIA Administration in the Energy Resource Recovery Account Proceedings
Timeline of Structural PCIA Changes
12 PCIA components influences a range of operational factors:
The PCIA does not change 3CE’s Generation Rates directly, but indirectly:
A high PCIA can impact customer opt out rates.
If large amounts of customers opt out, 3CE could be over procured, which would increase remaining customer rates. 3CE does not have a stranded cost recovery mechanism like the PCIA, which provides a one-way benefit. 3CE considers PCIA in looking at overall competitiveness during its rate design process.
Policy Board Directives:
Questions?
CEO Report
Community Advisory Council Report
EV Charger Asset Pilot Update
Request for Proposals Issued for Clean, Renewable, and Reliable Projects
Electrify Your Home
Energy Solutions Amendment 6
Operations Board - April 9, 2025
Inaara Muhammad, Manager of Energy Programs
3CE’s Electrify Your Home Program Overview & Benefits
Proposed Energy Solutions Amendment 6
CAC Collaboration for Electrify Your Home Version 2.0
Questions & Recommendation
Agenda
ITEM 14
Approve and authorize the CEO to execute Amendment No. 6 to the Cohen Ventures, Inc., DBA Energy Solutions Amended and Restated Standard Services Agreement to revise the scope of work allowing 3CE to distribute incentive checks directly, and to reduce the Agreement’s amount by $735,000 to a total not-to-exceed amount of $4,080,000.
Launched on October 2, 2022
Over $3.6 million incentives distributed
Promotes the adoption of heat pump technology through post-purchase rebates Mid-stream rebates for heat pump space & water heaters
Partnered with TECH Clean California
Layered Statewide Funding
TECH and EYH both administered by Energy Solutions
Overview & Benefits of Electrify Your Home (EYH)
Electrify Your Home Timeline
February 2022
Launch Electrify Your Home 1.0
April 2025
Energy Solutions Contract Amendment 6
April 2025
Community Workshops & Pilot RFP Launch
October 2024
Begin reviewing Electrify Your Home 1.0 with CAC
September 2025
Completion of Energy Solutions Contract
September 2025
Launch next iteration of Electrify Your Home
Community Interest Continues to Grow
Over 990 HPWH and HP HVAC rebates distributed since launch Over 460 MT CO2e avoided through Heat Pump Water Heaters since launch Over 40% projects completed in underserved community in FY 2024-25 FY 24-25 Cumulative EYH Participation
Month
Cumulative Rebates Distributed
Paid
Amendment 6 Necessity
Constant fluctuations in TECH funding availability
~ 35% 3CE funding allocated to pending / reserved projects Multiple amendments to add funding
Pending / Reserved
Service Improvements – Amendment 6
Stable 3CE rebates
3CE incentives independent of TECH funding availability 3CE funds allocated to completed projects
Sending incentive checks directly from 3CE
Discontinuing reservations
Adding 3CE incentive funds for customer
Financials & Schedule
Reduces NTE by $735,000 to a total NTE of $4,080,000
Budgets Energy Solutions admin fees
Sends incentive checks directly from 3CE
Allows uninterrupted transition of program in house by FY 2025-26
Electrify Your Home Timeline
February 2022
Launch Electrify Your Home 1.0
February 2022
Launch Electrify Your Home 1.0
April 2025
Energy Solutions Contract Amendment 6
April 2025
Community Workshops & Pilot RFP Launch
October 2024
Begin reviewing Electrify Your Home 1.0 with CAC
September 2025
Completion of Energy Solutions Contract
September 2025
Launch next iteration of Electrify Your Home
EYH V2.0 with 3CE’s Community Advisory Council
Northern region workshop:
Thursday, April 10 @ 5:30 pm at Watsonville Civic Plaza Community Room Southern region workshop:
Thursday, April 17 @ 5:30 pm at Goleta Valley Community Center EYH v2.0 April 2025 Community Workshops
It is recommended that the Operations Board Approve and authorize the CEO to execute Amendment No. 6 to the Cohen Ventures, Inc., DBA Energy Solutions Amended and Restated Standard Services Agreement to revise the scope of work allowing 3CE to distribute incentive checks directly, and to reduce the Agreement’s amount by $735,000 to a total not-to-exceed amount of $4,080,000.
Thank You & Recommendation
Presentation of the Calpine Agreement Amendments
ITEM 15
Data Manager and Call Center Services
33 Calpine in the CCA environment
34 Calpine Services – a core function
35 Constant Communication
36 Amendment No. 2
The amendment establishes:
37 Next steps
38 Conclusion
It is recommended that the Operations Board approve and authorize the CEO to execute Amendment No. 2 and ratify Amendment No. 1 to the agreement with Calpine Energy Solutions to provide data management and call center services. 39 40
Questions