Operations Board of Directors
August 13, 2025
Consent Calendar Items 1-4
Approve minutes from the May 14, 2025 meeting of the Operations Board of Directors Authorize the CEO to execute Amendment No. 3 to the Standard Services Agreement with Maher Accountancy Corporation, extending the term two years through September 30, 2027, for controller, accounting, and annual audit assistance services and adding $689,700 for a revised not to exceed total contract amount of $1,532,700 Authorize the CEO to execute Amendment No. 1 to the Services Agreement with Ascend Analytics, LLC power resource budgeting software services increasing the total agreement by $460,953 to a total not to exceed amount of $1,339,713, effective April 13,2022 and subject to annual renewals (1) Authorize the CEO to execute Task Order 3 for Energy Resource Management Services with The Energy Authority, Inc. effective September 1, 2025 through August 31, 2027 for a total amount of $443,759; (2) Authorize the CEO to execute up to two (2) amendments extending the term, subject to approval by the General Counsel
Consent Calendar Items 5-9
Authorize the CEO to execute Amendment No. 3 to the Standard Services Agreement with Maher Accountancy Corporation, extending the term two years through September 30, 2027, for controller, accounting, and annual audit assistance services and adding $689,700 for a revised not to exceed total contract amount of $1,532,700 Investment Performance Report for the period of October 1, 2024, through June 30, 2025 Financial Report for the period of October 1, 2024, through May 31, 2025 Update on 3CE's Energy Programs
CPUC Regulatory Update
CEO Report
a. CalCCA Seeks Rehearing on Power Charge Indifference Adjustment b. Federal Policy Shifts Impacting Renewable Energy
c. Community Advisory Council Report
Item 11
Presentation on 3CE Vacancies, Recruitment and Retention Efforts Pursuant to Government Code Section 3502.3
2023-2024 FTE
Approved
2024-2025 FTE
Total FTE
Total Vacancies
53 4
56 2
Current Positions and Vacancies
3CE Recruitment and Retention
Utilization of standard and industry specific recruiting methods as well as the use of social media. 3CE’s employees have established and designated 3CE as having an “Amazing Company Culture” and our independent Great Place to Work Certification demonstrates that.
There are no identified obstacles to hiring and no recommended changes in policies, procedures, or recruitment activities.
Item 12
(1) Authorize the CEO to execute a Hybrid - Battery Energy Storage System Power Purchase Agreement with MRP Pacifica Marketing III, LLC for 57 MW of dispatchable energy and 50.6 MW of resource adequacy from the VacaDixon Hybrid Project, in a form substantially similar to the attached, as well as any necessary ancillary documents, with a power delivery term of16.7 years effective upon execution, in an amount not to exceed $222,000,000; (2) Authorize the CEO to execute upto two (2) amendments, that do not change the total not to exceed contract amount, subject to approval by the General Counsel
OPERATIONS BOARD
August 13, 2025
Item 12. (1) Authorize the CEO to execute a Hybrid - Battery Energy Storage System Power Purchase Agreement with MRP Pacifica Marketing III, LLC for 57 MW of dispatchable energy and 50.6 MW of resource adequacy from the VacaDixon Hybrid Project, in a form substantially similar to the attached, as well as any necessary ancillary documents, with a power delivery term of16.7 years effective upon execution, in an amount not to exceed $222,000,000; (2) Authorize the CEO to execute upto two (2) amendments, that do not change the total not to exceed contract amount, subject to approval by the General Counsel
Vaca Dixon Hybrid PPA
Counterparty
MRP Pacifica Marketing III LLC
Parent Company
Middle River Power
Product
Existing Natural Gas Peaker Power Plant with new construction Battery Energy Storage System (BESS), providing Resource Adequacy (RA) benefits and dispatchable energy Delivery Term
16.7 years
January 1, 2027 – August 31, 2043
Project Name
Vaca Dixon Hybrid Energy Center
Contract Capacity
Existing 50.6 MW Natural Gas Turbine (GT)
New-Build 57 MW 1-hour discharge duration Lithium-Ion Battery Energy Storage System (BESS) % of 3CE RA Obligation
5%
Location
Vacaville, Solano County, California
Not to Exceed Amount
$222,000,000
Project Selection Criteria
Selection was made inclusive of 3CE’s Project Selection Criteria 3CE’s Project Selection Criteria assesses potential projects based on six categories:
Ability to cost effectively meet 3CE’s regulatory obligations and 3CE’s goal of 100% Clean and Renewable by 2030 Workforce and Local Workforce Development
Innovation
Location
Environmental Stewardship
Benefits to Underserved and Low-Income Communities
Each category is ranked on a scale of Low, Medium, or High.
Ability to cost effectively meet 3CE’s regulatory obligations and 3CE’s goal of 100% Clean and Renewable by 2030 With the volatile Resource Adequacy (“RA”) market dynamics, inclusive of a major reform called the 24-hour Slice-of-Day paradigm that went live in 2025, this hybrid resource will provide valuable fixed-price RA benefits to ensure RA compliance for 3CE.
Vaca Dixon Hybrid will meet approximately 5% of 3CE’s RA obligation.
It will provide a cost-effective energy hedge to 3CE and the CAISO. During constrained market condition events and it is dispatched, the financial structure has the energy being purchased directly by the CAISO from Seller. Thus, there will be no reportable emissions on 3CE’s Power Content Label. 3CE will work to maximize the charging and discharging of the new 1-hour BESS to provide the greatest value for 3CE customers and to reduce the utilization rate of the GT unit, thus reducing emissions that would have otherwise occurred absent the BESS. 3CE’s ranking is High
Workforce Development
The developer, MRP, represents that BESS construction work will also be bound under a project labor agreement (“PLA”) to which 3CE shall not be a party, and expect the number of construction jobs to be around thirty. After the commercial online date, the developer represents that the project will hire two additional operators to manage and maintain the BESS resources. 3CE’s ranking is High
Innovation
This project is a creative repurposing of existing site, utilizing its valuable and scarce transmission capacity to transition away from conventional power facilities towards energy storage systems.
The modeling indicates the new energy storage system will compete with the existing GT to use the interconnection capacity and is predicted to reduce emissions on average 37%. 3CE’s ranking is High.
Location
While not located within the 3CE jurisdictional footprint, the facilities are in Solano County and grid-tied to the CAISO balancing authority. 3CE’s ranking is Medium.
Environmental Stewardship
The project is in an area zoned for commercial/industrial use with other operating power plants nearby.
Land, biological and cultural surveys are underway and will be included in technical reports to the California Energy Commission as part of the permitting process; no significant impacts are anticipated to be identified.
The project is anticipated to reduce GT output and thereby lower emissions in the local area. 3CE’s ranking is High.
Benefits Accrued to Underserved Communities
MRP’s submission notes it has a plan to engage with the local community regarding the construction of the new energy storage system. As the Project is integrating an energy storage system to reduce output from the existing GT unit, it will thereby lower emissions in the area.
MRP is planning for approximately 75% of their workers to be hired from the local area for the construction of energy storage system. 3CE’s ranking is Medium.
Project Selection Criteria: VacaDixon Hybrid
Impact on Existing Facility by adding a new construction Battery Energy Storage System BESS will compete with Natural Gas Plant to use the valuable and scare transmission capacity. The more the BESS operates, the lower the emissions Average Emission Reduction Potential: 37%
Actual results are contingent on the real time energy market prices charging and discharging the battery as well as the discharge of the GT facility.
CO2 Projected Emissions (in tons) for the VacaDixon facility Year
GHG Emissions without Battery
GHG Emissions with Battery
GHG Emission Reductions due to Battery
2027
74,240
48,183
26,057
2028
75,849
47,632
28,216
2029
73,430
50,213
23,216
2030
67,565
44,289
23,276
2031
58,260
42,882
15,378
2032
54,017
36,326
17,691
2033
45,862
28,830
17,033
2034
42,029
27,647
14,382
2035
36,046
23,340
12,706
2036
34,616
20,856
13,759
2037
33,847
19,544
14,304
2038
31,661
19,339
12,323
2039
28,671
15,883
12,789
2040
22,623
13,013
9,610
Vaca Dixon BESS – Strategic Fire Mitigation
Moss Landing battery fires and older lithium manganese cobalt (“NMC”) technology failures demonstrate the importance of adhering to current safety regulations and to implement modern systems designed to mitigate fire risks.
MRP has mitigated fire risks as outlined below:
MRP sources batteries from CATL & SYL, the world’s largest Tier 1 BESS suppliers backed by a strong performance history.1 LFP technology is the new standard in utility-scale storage with a chemistry least likely to release flammable gases in the event of overheating.
Source #1: James Daggett, “2022 Battery Scorecard,” DNV GL (2022).
Source #2: “Research on the Thermal Runaway Behavior and Flammability Limits of Sodium-Ion and Lithium-Ion Batteries,” MDPI, 12 Jan. 2025, www.mdpi.com/2313-0105/11/1/24.
Source #3: “How Liquid-Cooled Technology Unlocks the Potential of Energy Storage.” Wood Mackenzie, 23 Jan. 2023.
Source #4: “Lithium-Ion Battery Fires and Fire Protection.” National Fire Sprinkler Association, 30 Oct. 2024.
Point #3: Outdoor installations with significant separation for more convenient and safer firefighting access.4 Point #2: Liquid-cooled configurations have significantly improved heat transfer ability, keeping cells cool during charge/discharge. Includes safety mechanism automatically derating BESS, and in certain cases, completely shutting down the container. 3 Spacing between containers include 28 feet of separation, far exceeding NFPA 855 standards & 6.5 feet requirement, isolating a single container from the rest should an unlikely event occur. 4 Containers include internal fire-suppression aerosol coupled with fire water available to deluge the adjacent containers to avoid propagation.
Staff recommend approval of this PPA, in substantial form to attachment, with MRP Pacifica Marketing III LLC LLC as it will:
Provide 3CE a high value RA product,
Reduce 3CE’s RA non-compliance risks,
Obtain cost certainty in a volatile market,
Encourage good-paying jobs in support of battery construction, and Reduce emissions from existing natural gas Peaker facility.
Vaca Dixon Hybrid Energy Center-Conceptual Drawing includes new BESS
Questions
Leo Kim
Director of Power Supply
Central Coast Community Energy
Item 13
(1) Authorize the CEO the execute a Power Purchase Agreement with IP Darden IV LLC, for up to 93.01 MW of Solar Renewable Energy and 91.48 of BESS Capacity, in a form substantially similar to the attached, as well as any necessary ancillary documents, with a delivery term of 10 years and expected Commercial Operations Date of June 1, 2028, in an amount not to exceed $319,000,000. (2) Authorize the CEO to execute up to two (2) amendments, that do not change the total not to exceed contract amount, subject to approval by the General Counsel
OPERATIONS BOARD
August 13, 2025
Item 13. (1) Authorize the CEO the execute a Power Purchase Agreement with IP Darden IV LLC, for up to 93.01 MW of Solar Renewable Energy and 91.48 of BESS Capacity, in a form substantially similar to the attached, as well as any necessary ancillary documents, with a delivery term of 10 years and expected Commercial Operations Date of June 1, 2028, in an amount not to exceed $319,000,000. (2) Authorize the CEO to execute up to two (2) amendments, that do not change the total not to exceed contract amount, subject to approval by the General Counsel
Darden Clean Energy Project
Counterparty
IP Darden IV LLC
Parent Company
Intersect Power, LLC
Product
As-available Solar PV PCC1 renewable energy plus Battery Energy Storage System (BESS) including Energy, Resource Adequacy and Renewable Energy Credits.
Delivery Term
10 years
June 1, 2028 – May 31, 2038
Project Name
Darden Clean Energy
Contract Capacity
Up to 93.01 MW Solar PV plus
94.38 MW 4-hour discharge duration Lithium-Ion Battery Energy Storage System (BESS) 3CE is taking a share of this project, totaling 1,150 MW Solar PV + 1,150 MW BESS once completed % of 3CE Load SERVED
5%
Location
Cantua Creek, Fresno County, California
Not to Exceed Amount
$319,000,000
Project Selection Criteria
Selection was made inclusive of 3CE’s Project Selection Criteria 3CE’s Project Selection Criteria assesses potential projects based on six categories:
Ability to cost effectively meet 3CE’s regulatory obligations and 3CE’s goal of 100% Clean and Renewable by 2030 Workforce and Local Workforce Development
Innovation
Location
Environmental Stewardship
Benefits to Underserved and Low-Income Communities
Each category is ranked on a scale of Low, Medium, or High.
Ability to cost effectively meet 3CE’s goal of 100% Clean and Renewable by 2030 and 3CE’s regulatory obligations The Darden Clean Energy Project will
move 3CE 5% closer to meeting our 100% clean and renewable by 2030 procurement strategy provide valuable PCC1 RECs (Renewable Energy Certificates) and RA (Resource Adequacy) benefits to meet regulatory requirements provide cost-effective energy at a fixed price.
3CE’s ranking is High
Workforce Development
The developer, Intersect Power, has committed to paying local prevailing wages as the project approaches the construction phase. The developer estimates around 1600 jobs will be created during construction and 14 permanent jobs once operations begin for the larger 1,150 MW project. They are targeting 100% of the workforce to come from local hires. 3CE’s ranking is High
Innovation
3CE is one of eight off takers to the Darden Clean Energy Project and will total 1,150 MW of Solar PV and 1,150 MW of energy storage. This project, once completed, will be the largest energy storage facility in the world. In June 2025, the CEC approved it under a new fast-track permitting program (AB205). Gov. Gavin Newsom lauded the news in a press release, writing that the state is “moving faster than ever before” to build up clean energy. 3CE’s ranking is High.
Location
While not located within the 3CE jurisdictional footprint, the facilities are in Fresno County and grid-tied to the CAISO balancing authority. 3CE’s ranking is Medium.
Environmental Stewardship
In general, Intersect Power is a participant in the United Nation Global Compact, committed to preserving the planet for future generations.
For the specific site in Fresno, Intersect is committed to mitigating any impact as they go through the CEQA process, which is still underway. The energy storage system will consist of the Tesla Megapack 2XL, using the less dense (and safer) lithium iron phosphate (LFG) chemistry in outdoor, containerized units, with the latest thermal management system and controls. 3CE’s ranking is Medium.
Benefits Accrued to Underserved Communities
Intersect Power has developed the Darden Clean Energy Project's Community Benefits Plan, with a commitment to invest a large amount of money to Fresno County, focusing on education and economic opportunity, transportation, air quality, housing, and healthy foods. Since early 2024, Intersect has conducted multi-lingual outreach to the nearby community, along with proactive engagement with various community-based organizations, such as the Leadership Counsel for Justice and Accountability, Rural Communities Rising and the Central California Environmental Justice Network. 3CE’s ranking is High.
Project Selection Criteria: Darden Clean Energy Project
Staff recommend approval of this PPA, in substantial form to attachment, with IP Darden IV LLC as it will:
move 3CE 5% closer to meeting our 100% clean and renewable by 2030 procurement strategy provide valuable PCC1 RECs (Renewable Energy Certificates) and RA (Resource Adequacy) benefits to meet regulatory requirements provide cost-effective energy at a fixed price
Questions
Leo Kim
Director of Power Supply
Central Coast Community Energy