Operations Board of DirectorsRegular Meeting
January 1, 2026
Consent Calendar Items
Approve minutes from the November 12, 2025 special meeting of the Operations Board Approve minutes from the November 12, 2025 regular meeting of the Operations Board Authorize the CEO to execute Amendment No. 3 to the Standard Services Agreement with CalPine Energy Solutions, LLC, to amend the scope of work to include Application Program Interfaces (APIs) with no change to the not-to-exceed amount or contract term Approve Renewal of Commercial Lease with SGSK, LLC for the premises at 70 Garden Court, Suites 300, 201, 202 in Monterey, California to extend the term for an additional six months ending June 30, 2026 FY 2025-26 Energy Programs Update
CPUC Regulatory Update
Financial Report for the period of October 1, 2025, through October 31, 2025
CEO Report
Large Load Regulatory Advocacy Update
CPUC 2026 ERRA Decisions for PG&E and SCE — Impacts to CCA Customers
Power Charge Indifference Adjustment (PCIA)
The PCIA is an Investor-Owned Utility (IOU) charge paid by Community Choice Aggregation (CCA) and Direct Access (DA) customers to cover above-market costs of IOU legacy contracts PCIA rates are set by the CPUC. Revenues from the charge are billed and collected by the IOUs
PCIA Formulation Process
PABA: Tracks the indifference amount and what was collected through IMPLEMENTED RATES throughout the year Errors in market prices or load forecasts
Over or Under collections are “Trued Up” and the costs included in the next year’s forecasted PCIA rates charged by the CPUC
Item 9
Adopt Resolution No. OB-2026-01 approving and authorizing the CEO to execute: (1) a Power Purchase Agreement ("PPA") as well as any necessary ancillary documents with Monterey Regional Waste Management District for a term of up to three years and in a total not to exceed amount of $5,040,000; and, (2) up to two amendments, which do not change the total not to exceed amount, subject to approval by the General Counsel
7 8
ReGen Monterey Power Purchase Agreement
9 Counterparty
Monterey Regional Waste Management District
Product
Energy, PCC1 Renewable Attributes, RA Capacity Attributes Contract Capacity
3 MW
Delivery Term
1 year with up to two (2) additional 1-year extensions by mutual agreement February 1, 2026- January 31 2029
Location
Monterey County, CA
Annual Deliveries
<1% of 3CE Load
Not to Exceed $ Amount
$5,040,000
Contributions to 3CE’s Mission of 100% Clean and Renewable The resource will provide cost-effective baseload PCC1 RECs, however the short-term nature of the deal will require higher operating touchpoints. This is an existing facility so there is no developmental risk. 3CE’s ranking is High.
Workforce Development
While not entirely applicable, this meets the criteria of our project selection. ReGen Monterey is a public agency in Monterey County providing sustainable waste management services and supports a local workforce, employing 140 people including 4 dedicated to run and facilitate landfill gas functions.
Not ranked.
Project Selection Criteria: ReGen Monterey
Innovation
This project represents a partnership with a local agency that can serve as a model to allow for future strategic planning. 3CE’s ranking is High.
Location
ReGen Monterey is located in Monterey County and is interconnected to the CAISO Grid. 3CE’s ranking is High.
Environmental Stewardship
ReGen Monterey serves the community by leading sustainable waste management efforts and is committed to environmental stewardship, as outlined in their 2022-2030 Strategic Plan. 3CE’s ranking is High.
Benefits Accrued to Underserved Communities
ReGen Monterey is a local partner with many community programs. Last Chance Mercantile is a Reuse program that provides low-cost clothing, houseware, furniture, books, and other items to the community. They also offer an Edible Food Recovery Programs to help feed local families while keeping edible food out of the landfill and partner with local schools and districts to offer technical assistance and education on zero-waste culture. 3CE’s ranking is High.
High
11 Staff Recommend Adoption of This Resolution to Execute the PPA with ReGen Monterey Secures a local, baseload renewable resource under a low-risk, flexible contract structure Supports zero-waste community efforts by generating electricity using landfill gas that would otherwise be wasted
12 13
ReGen Monterey Power Purchase Agreement
14 Counterparty
Monterey Regional Waste Management District
Product
Energy, PCC1 Renewable Attributes, RA Capacity Attributes Contract Capacity
3 MW
Delivery Term
1 year with up to two (2) additional 1-year extensions by mutual agreement February 1, 2026- January 31 2029
Location
Monterey County, CA
Annual Deliveries
<1% of 3CE Load
Not to Exceed $ Amount
$5,040,000
Contributions to 3CE’s Mission of 100% Clean and Renewable The resource will provide cost-effective baseload PCC1 RECs, however the short-term nature of the deal will require higher operating touchpoints. This is an existing facility so there is no developmental risk. 3CE’s ranking is High.
Workforce Development
While not entirely applicable, this meets the criteria of our project selection. ReGen Monterey is a public agency in Monterey County providing sustainable waste management services and supports a local workforce, employing 140 people including 4 dedicated to run and facilitate landfill gas functions.
Not ranked.
Project Selection Criteria: ReGen Monterey
Innovation
This project represents a partnership with a local agency that can serve as a model to allow for future strategic planning. 3CE’s ranking is High.
Location
ReGen Monterey is located in Monterey County and is interconnected to the CAISO Grid. 3CE’s ranking is High.
Environmental Stewardship
ReGen Monterey serves the community by leading sustainable waste management efforts and is committed to environmental stewardship, as outlined in their 2022-2030 Strategic Plan. 3CE’s ranking is High.
Benefits Accrued to Underserved Communities
ReGen Monterey is a local partner with many community programs. Last Chance Mercantile is a Reuse program that provides low-cost clothing, houseware, furniture, books, and other items to the community. They also offer an Edible Food Recovery Programs to help feed local families while keeping edible food out of the landfill and partner with local schools and districts to offer technical assistance and education on zero-waste culture. 3CE’s ranking is High.
High
16 Staff Recommend Adoption of This Resolution to Execute the PPA with ReGen Monterey Secures a local, baseload renewable resource under a low-risk, flexible contract structure Supports zero-waste community efforts by generating electricity using landfill gas that would otherwise be wasted
Item 10
Adopt Resolution No. OB-2026-02 approving and authorizing the CEO to execute Amendment No. 1 to the Power Purchase Agreement with IP Darden IV LLC, as well as any necessary ancillary documents, to: (1) add five years to the delivery term for a total of 15 years; and (2) increase the not to exceed amount by $127,000,000 for a total not to exceed of $446,000,000
Darden IV Power Purchase Agreement
18 Original PPA
Proposed Amendment
Counterparty
IP Darden IV, LLC
No Change
Parent Company
Intersect Power, LLC
No Change
Contract Capacity
91.48 MW Solar plus
91.48 MW 4hr BESS
No Change
Delivery Term
10 years
June 1, 2028 – May 31, 2038
15 years
June 1, 2028 – May 31, 2043
Annual Deliveries
~5% of 3CE Load
No Change
Not to Exceed $ Amount
$319,000,000
$446,000,000
~7% cost reduction over duration
19 Staff Recommend Adoption of This Resolution to Amend the Darden IV PPA Financial Benefits
Lower price is below market and
Not to Exceed annual average drops from $31.9M to $29.7M Compliance Obligation
Renewable Portfolio Standard – Provides ~260,000 MWh annually, or approximately 5% of 3CE’s load Resource Adequacy Value – Improves portfolio position out to 2043
Item 11
Adopt Resolution No. OB-2026-03 to: (1) approve and authorize the CEO to execute a Power Purchase Agreement ("PPA") with Atlas Solar II, LLC, as well as any necessary ancillary documents for 100 MW of solar generation with a delivery term of fifteen years in an amount not to exceed $214,000,000; and, (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
Atlas II Solar Power Purchase Agreement
21 Counterparty
Atlas Solar II, LLC
Counterparty
Atlas Solar II, LLC
Parent Company
TransGrid Energy LLC (Subsidiary of Hanwha Group, a Fortune 500 multinational company) Product
As-available Solar PV PCC1 renewable energy plus Renewable Energy Credits Contract Capacity
100 MW Solar
Delivery Term
15 years
Dec 1, 2026 – Nov 30, 2041
Location
La Paz County, AZ
Annual Deliveries
~5% of 3CE Load
Not to Exceed $ Amount
$214,000,000
Contributions to 3CE’s Mission of 100% Clean and Renewable This project will move 3CE 5% closer to meeting our 100% clean and renewable by 2030 procurement strategy, provide valuable PCC1 RECs (Renewable Energy Certificates) benefits to meet regulatory requirements, along with providing cost-effective energy at a fixed price. It’s December 2026 online date also dramatically reduces the development risk for this project, when compared to others with later dates. 3CE’s ranking is High.
Workforce Development
TransGrid Energy is seeking federal funds from the IRA (Inflation Reduction Act of 2022), and, thus, will be paying federal prevailing wages and hiring apprentices from federally registered programs. They have also made a commitment to hiring locally. The developer estimates around 120 jobs will be created during construction and 6 permanent jobs once operations begin. 3CE’s ranking is Medium.
Project Selection Criteria: Atlas Solar II
Innovation
3CE is one of several off takers to the Atlas Complex in Arizona and will total over 3,200 MW of Solar PV and energy storage. The 125-mile Ten West Link transmission path, operational in 2024, represents a new physical energy connection between California and Arizona and a partnership towards a sustainable energy future. 3CE’s ranking is High.
Location
The Atlas Solar II project is in La Paz County, Arizona. Given the renewable energy will be delivered into California via the Ten West Link transmission line, controlled by CAISO, it will be viewed by CAISO no differently than an in-state resource when it becomes operational. 3CE’s ranking is Medium.
Environmental Stewardship
The Atlas Solar II project is not on BLM land. According to the developer, the site has undergone extensive geological, environmental, wetland, endangered species surveys, including a full survey conducted by the Colorado River Indian Tribe to check for artifacts and historical sites. No impacts were identified. 3CE’s ranking is High.
Benefits Accrued to Underserved Communities
TransGrid Energy, as part of the Atlas Energy Complex buildout, has actively engaged with local non-profits and is in a cooperative agreement with La Paz County and the Colorado River Indian Tribe. 3CE’s ranking is High.
High
High
23 Staff Recommend Adopt of This Resolution to Execute the PPA with Atlas Solar II, LLC Provide valuable PCC1 RECs (Renewable Energy Certificates) benefits to meet regulatory requirements Provide cost-effective energy at a fixed price serving approximately 5% of 3CE’s load December 2026 online date significantly reduces development risk