EXECUTIVE COMMITTEE
MEETING
Revised Agenda
October 21, 2026
11:30 AM
Central Coast Community Energy
20 Ryan Ranch Rd, Suite 214
Monterey, CA 93940
TELECONFERENCE LOCATIONS
Any interested parties or community members may attend, and participate in, the meeting at the following addresses, where Executive Committee members may also join the meeting from:
County of Santa Barbara
County Administration Bldg.
105 E. Anapamu Street, 4th Floor
Santa Barbara, CA 93101
City of Santa Cruz
City Manager’s Conference Room
809 Center Street, Room 10
Santa Cruz, CA 95060
County of San Luis Obispo
Government Building
1055 Monterey Street
San Luis Obispo, CA 93408
Hyatt Palm Springs
285 North Palm Canyon Drive
Palm Springs, CA US 92262
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
WRITTEN COMMENTS SUBMITTED AT THE MEETING: If you have anything that you wish to be distributed to the Board, please provide 15 copiesto the Board Clerk, who will distribute the information to the Board members and staff.
CONSENT AND NON-AGENDA PUBLIC COMMENT: 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.
WRITTEN COMMENTS PRIOR TO THE MEETING: If you choose not to attend the 3CE Executive Committee meeting but wish to make a comment on a specific agenda item, you may submit your comment as set out below.
a. To have your comments distributed to the Board prior to the meeting submit your comment via email by 5:00 p.m. on the Tuesday before the meeting. Please submit your comment to the Board Clerk at [email protected]. To assist the Clerk in identifying the agenda item relating to your public comment please indicate in the Subject Line, the meeting body (i.e. Executive Committee, Policy or Operations Board of Directors Agenda) and item number (i.e. Item No. 3). Your comment will be placed into the record at the Board meeting.
AGENDA MATERIALS: Members of the public may request and receive copies 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 20 Ryan Ranch Road, Suite 214, Monterey, CA 93940 during normal business hours and should also be available on the 3CE website located at:
https://3cenergy.org/meetings-agendas/
ACCESSIBILITY: Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Board Clerk at 831-901-3362 or [email protected] Requests should be made as soon as possible but at least 72 hours prior to the scheduled meeting.
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 $500 (adjusted yearly) 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 in the preceding twelve (12) months.
Members of the Board who have received, and applicants, contractors or their agents who have made, campaign contributions totaling more than $500 (adjusted annually) 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 Board Clerk prior to the subject hearing or by verbal disclosure at the time of the hearing.
Welcome & Roll Call
Public Comment on Matters Not Listed on the Agenda
The public may provide comments on any item within the CAC's jurisdiction but not on the Agenda. The CAC 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. Speakers are limited to 3 minutes each.
CONSENT AGENDA
1. Approve Draft Minutes of the Executive Committee meeting on August 19, 2026
REGULAR AGENDA
2. CEO Report
a. Operations Board Report
b. Community Advisory Committee Report
c. Legislative Update
d. American Public Power Association Recognizes 3CE
3. Update on 3CE Capital Projects
4. Receive an update on regulatory and market changes since adoption of 3CE’s 2030 clean and renewable energy goal and provide feedback on next steps for maintaining procurement flexibility
5. Consider waiving potential conflict of interest to allow outside counsel to represent 3CE and developers on unrelated matters and delegating authority for future waivers
6. Adjournment
1 Executive Committee Meeting
August 19, 2026
11:30 AM
Central Coast Community Energy
20 Ryan Ranch Road, Suite 214
Monterey, CA 93940
Teleconference Locations
City of Santa Cruz
City Hall
City Manager’s Conference Room
809 Center Street, Room 10 Santa
Cruz, CA 95060
County of San Luis Obispo
District 3 Office
1055 Monterey Street
San Luis Obispo, CA 93408
City of Atascadero
City Hall
6500 Palma Ave.
Atascadero, CA 93422
County of Santa Barbara
County Administration Building
Room 108, Large Conference
Room 105 E. Anapamu Street
Santa Barbara, CA 93101
Draft MINUTES
1. The meeting was called to order at 11:33 AM with six members present and quorum established.
Directors present: County of Monterey: Daniels (HQ)
County of Santa Barbara: Hartmann
City of Santa Cruz: Huffaker
City of Atascadero: Lewis
Vice Chair Ortiz-Legg
City of Santa Cruz: Chair Keeley (HQ)
Directors present: Miyasato
The Pledge of Allegiance was led by Vice Chair Ortiz-Legg.
Item 1
2 Corrections or Additions to the Agenda
The Chair called for corrections or additions on the agenda. • Dewayne Woods, Chief Power Officer, advised the recommendation on the Board report for item 3 should read: This memorandum recommends that the Executive Committee consider staff’s recommendation…” instead of the Policy Board.
Public Comment on Items on the Consent Calendar and Items Not Listed on the Agenda The Chair called for Public Comment.
• There were no Public Comments.
The Chair closed public comments.
CONSENT AGENDA
1. Approved Executive Committee Meeting minutes of May 20, 2026.
Motion: Motion by Member Daniesl, seconded by Member Ortiz-Legg to approve as submitted.
Ayes: Daniels, Hartmann, Huffaker, Lewis, Vice Chair Ortiz-Legg, Chair Keeley Noes: None
Absent: Miyasato
Action: Motion carried with a roll call vote of 6/0/1
REGULAR AGENDA
2. Received Update on 3CE’s 2026 Integrated Resource Compliance Plan Action: Received update. No action taken.
3. a. Approved an office renovation capital improvement project at 3CE’s office located at 2601 Porter Street in Soquel; and
b. Authorized the Chief Executive Officer to execute the construction proposal and all necessary vendor contracts, including furniture, fixtures, and equipment (FF&E), to implement the improvements at 2601 Porter Street in Soquel, with a total budget not-to-exceed amount of $690,283.
The Chair opened Public Comment.
• There were no public comments.
The Chair closed Public Comment.
Motion: Motion by Member Huffaker, seconded by Member Daniels to approve.
Ayes: Daniels, Hartmann, Huffaker, Lewis, Vice Chair Ortiz-Legg, Chair Keeley Noes: None
Absent: Miyasato
Action: Motion carried with a roll call vote of 6/0/1
3 4. Approved a Capital Improvement Project for 3CE’s Ryan Ranch Headquarters to implement workplace design services, improvements, and equipment in an amount not to exceed $200,000.
The Chair opened Public Comment.
• There were no public comments.
The Chair closed Public Comment.
Motion: Motion by Member Daniels, seconded by Member Vice Chair Ortiz-Legg to approve.
Ayes: Daniels, Hartmann, Huffaker, Lewis, Vice Chair Ortiz-Legg, Chair Keeley Noes: None
Absent: Miyasato
Action: Motion carried with a roll call vote of 6/0/1
5. Support Policy Board authorizing the CEO to execute a clean energy purchase contract with California Community Choice Finance Authority and all ancillary documents and agreements to effectuate 3CE’s Second Energy Prepayment financing transaction.
The Chair opened Public Comment.
• There were no public comments.
The Chair closed Public Comment.
Motion: Motion by Member Huffaker, seconded by Member Daniels to approve.
Ayes: Daniels, Hartmann, Huffaker, Lewis, Vice Chair Ortiz-Legg, Chair Keeley Noes: None
Absent: Miyasato
Action: Motion carried with a roll call vote of 6/0/1
ADJOURNED at 12:23 PM
_______________________
Chair, Fred Keeley
Attest:
____________________
Clerk, Gail Borkowski
Staff Report Item 2
TO: 3CE Executive Committee
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: CEO Report
DATE: October 21, 2026
Operations Board Report
The October 14, 2026 Operations Board meeting was cancelled. The next meeting of the Operations Board is scheduled for November 18, 2026.
Community Advisory Committee Report
The Community Advisory Committee met on October 7, 2026. The Committee received presentations on new and enhanced program offerings available to customers in FY 2026-27. The Committee provided additional feedback for staff regarding opportunities for community and stakeholder engagement to support the Energy Program’s strategic planning process pursuant to the Policy Board adopted CAC Workplan.
Staff continue to solicit applications from individuals interested in serving on the CAC. Applications are available on 3CE’s website at: https://3cenergy.org/wp-content/uploads/2026/10/CAC-Application-New-2026.10.05.pdf Legislative Update
Governor Newsom vetoed AB 1761, which would have increased transparency around the Power Charge Indifference Adjustment (PCIA). Despite the veto, the bill received bipartisan, near-unanimous support in the Legislature and helped elevate awareness of the PCIA’s impact on customer affordability.
Additionally, SB 886 and AB 2383, which 3CE was closely involved in shaping, were signed into law, establishing new requirements for large energy users, including data centers, to contribute to grid upgrade costs and bring new clean energy supplies onto the grid.
American Public Power Association Recognizes 3CE
American Public Power Association presented 3CE a Cybersecurity Accelerator Program Gold-level designation to recognize 3CE’s demonstrated commitment to strengthening cybersecurity and advancing sound cybersecurity practices in service of our communities and customers. 3CE’s participation in the APPA Cybersecurity Accelerator Program was led by Manager of Information & Technology Navendu Dali and carried out by our dedicated IT specialist Jon Tobar.
Staff Report Item 3
TO: 3CE Executive Committee
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY Chris Rich, VP Business Operations
Chris Cook, Director of Energy Programs
SUBJECT: Update on 3CE Capital Projects
DATE: October 21, 2026
RECOMMENDATION:
Receive update on 3CE capital projects.
BACKGROUND:
Central Coast Community Energy (3CE) operates within a five-county region, including Santa Cruz, Monterey, San Benito, San Luis Obispo, and Santa Barbara counties. This is the largest geographic territory of any Community Choice Aggregator (CCA) in California, and multiple facilities throughout the service area are needed to remain close to our customers and stakeholders, ensuring local accessibility and accountability.
Over the past several years, 3CE has built out its regional presence. 3CE purchased a building at 1026 Palm Street in San Luis Obispo County in 2023 and a second building at 2601 Porter Street in Santa Cruz County in 2024, establishing permanent regional offices in both areas. In 2025, 3CE entered a five-year lease at 820 State Street in Santa Barbara County, the southernmost portion of its service area. Most recently, in summer 2026, 3CE relocated its Monterey office to 20 Ryan Ranch Road, where it will remain until a permanent, 3CE-owned office building is constructed.
As its office portfolio has grown, so has the scale and complexity of 3CE’s other capital work. On September 17, 2026, the Policy Board approved the establishment of a Department of Energy Solutions (DES) to develop and operate complex capital and energy projects.
As a result, current capital projects fall into two categories: (1) facilities renovations under the Department of General Services that support 3CE’s growing staff and local presence, and (2) capital energy projects now organized under the DES. This staff report provides an update on the status of projects underway in each category.1
DISCUSSION/ANALYSIS:
Facilities and DES projects strengthen 3CE’s local presence across its five-county service area and lay the groundwork for 3CE to develop and operate community-scale energy assets. The sections below summarize the status of current facilities renovations and DES projects, along with key milestones anticipated over the coming months.
1. Facilities
Over the last two years, 3CE has grown from having approximately 35 employees and two offices in Monterey and San Luis Obispo, to now having 72 budgeted positions and four offices in Monterey, San Luis Obispo, Santa Cruz, and Santa Barbara. With this growth, remodels were necessary to create workspace for additional staff. The status of current remodels is noted below. 2601 Porter Street Office Renovation (Soquel): Our largest facilities-related improvement underway, this project turns the interim open-floor office into a code-compliant, long-term workspace with a large conference room, four private offices, an IT/data room, and a second accessible restroom, along with updated finishes, electrical, and fire/life-safety systems. Enclosing the space also requires new fresh-air ventilation, and the building stays fully electric. Newton Construction & Management will do the work, starting December 3, 2026, with completion expected by mid-2027. 3CE is in process of leasing a temporary workspace for approximately 6-months in Soquel/Capitola area, until the construction at Porter Street is complete.
20 Ryan Ranch Road: Initial work (Phase 1) to update the office layout and install critical workstation equipment has been completed. Design work is now kicking off, with contracts signed and scoping underway with our vendor OneWorkspace (Phase 2). Services will include development of furniture layouts, collaboration space concepts, interior finish recommendations, furniture specifications, installation documentation, and post-occupancy evaluation. Services are also expected to include enhanced audiovisual and sound design for conference and collaboration spaces. Staff will provide progress updates at upcoming Executive Committee meetings.
1 3CE’s permanent Monterey office building is anticipated as a DES lead project due to its size and complexity.
The long-term operation and maintenance will be lead by the Department of General Services.
2. Department of Energy Solutions (DES)
The DES gives 3CE a dedicated internal function to take major complex capital and energy projects from concept through site control, procurement, construction, and long-term operations. The status of current DES projects and planning work is noted below.
3CE Permanent Office Building (Monterey Area): The largest near-term project in the DES portfolio is a potential new 3CE office building in the Monterey area. The building is anticipated to be approximately 25,000 sq ft on a 4.88 acre site. In addition to office space, it would allow for a separate community space with an electrification demonstration hub. The building project is pending land purchase negotiations and associated due diligence work. The new building is anticipated to start preliminary planning phase work in Q1 2027.
Public EV Charging Pilot (Santa Maria): The DES portfolio also includes the public EV charging site in downtown Santa Maria, the largest project in the EV Charger Asset Pilot. Undergrounding and hardscape work is complete, and the switchgear and transformer must be installed before final installation of the chargers. Energizing is anticipated in Q1 2027.
To support the ramp-up of the department, staff are drafting one-, three-, and five-year plans for the DES and compiling a list of potential local projects. To support future project siting, staff are also mapping substation capacity for generation and storage projects and researching local ordinance and zoning requirements. This groundwork will allow the DES to grow from delivering its current projects to building a pipeline of local capital and energy projects for future years.
Next Steps
Several milestones are expected in the months ahead. Construction on the Porter Street renovation is scheduled to begin December, 2026, and energization of the Santa Maria EV charging site is anticipated in Q1 2027. Preliminary planning for the permanent Monterey office building is also targeted for Q1 2027, pending the outcome of land purchase negotiations and due diligence. In parallel, staff will finalize the DES one-, three-, and five-year plans and continue developing a pipeline of potential local projects FISCAL IMPACT:
Receipt of this update has no financial impact on 3CE.
CONCLUSION:
Facilities and DES projects strengthen 3CE’s local presence across its five-county service area and lay the groundwork for 3CE to develop and operate community-scale energy assets. The Executive Committee’s consideration and feedback will inform staff’s next steps for capital project planning. Staff will continue to provide updates to the Executive Committee as these projects reach key milestones.
Staff Report Item 4
TO: 3CE Executive Committee
FROM: Robert M. Shaw, CEO
PREPARED BY Jerri Gilles, Director of Regulatory Affairs & Compliance Geoffrey Ihle, Director of Energy Risk Management
SUBJECT: Receive an update on regulatory and market changes since adoption of 3CE’s 2030 clean and renewable energy goal and provide feedback on next steps for maintaining procurement flexibility.
DATE: October 21, 2026
RECOMMENDATION:
Receive an update on regulatory and market changes since adoption of 3CE’s 2030 clean and renewable energy goal and provide feedback on next steps for maintaining procurement flexibility.
BACKGROUND:
On September 2, 2020, Central Coast Community Energy (3CE) adopted its goal to achieve 100% retail sales served by clean and renewable energy by 2030. A stretch goal sought to balance generation with customer demand on a monthly basis. Importantly, when setting this goal, the Board preserved flexibility in how it would be achieved, rather than prescribing a specific procurement strategy. 1 This
flexibility has proven particularly prescient, allowing 3CE the ability to evaluate adapting its procurement strategies amid significant changes to California’s regulatory requirements and energy markets. 3CE’s increased retail demand along with the transformation in California's energy regulatory landscape since 2020 has expanded procurement, reliability, and compliance obligations and introduced new financial and operational considerations for load-serving entities (LSEs):
1 The 2020 goal. 3CE Policy Board, 2 Sep 2020, Item 11; adopted with a friendly amendment striking “utility scale” (minutes held by the Board Clerk; not posted online). The staff recommendation (60% by 2025, 100% by 2030) also appears in that meeting’s FY2020-21 Budget Book: https://3cenergy.org/wp-content/uploads/2022/06/Budget-Book-Policy-Board-20200902.pdf
Through its Integrated Resource Planning (IRP) framework, the CPUC has adopted substantial statewide procurement mandates, including Mid-Term Reliability (MTR) requirements and directives for clean firm resources and long-duration energy storage.2 These requirements have increasingly influenced the types of resources LSEs must procure and the timelines within which those resources must become operational.
RA requirements have also evolved significantly, particularly through the transition to a 24-hour Slice-of-Day framework, which requires more granular demonstration of resource availability throughout the day.3
California's stringent Renewable Portfolio Standard (RPS) requirements, including the mandate to achieve 60% renewable energy by 2030, have driven LSEs to procure renewable resources to meet the same statewide targets, increasing competition for scarce resources and placing additional pressure on procurement costs.4
The CPUC has also revised, after the fact, how it values resources that LSEs have already procured: Decision 25-06-049 unified and substantially reduced the Resource Adequacy market price benchmark used in the Power Charge Indifference Adjustment and applied the change retroactively to 2025, shifting costs onto CCA customers without any transaction or decision by 3CE.
These key developments and other California Public Utilities Commission (CPUC) decisions have fundamentally reshaped the regulatory and market conditions under which 3CE must pursue its 2030 clean and renewable energy goal. Collectively, these decisions affect resource valuation, how resources are counted toward compliance obligations, and the degree of procurement flexibility available to 3CE through increasingly prescriptive mandates. These changes underscore the importance of maintaining flexibility as 3CE continues to procure and manage its energy portfolio.
Despite these evolving regulatory and market conditions, 3CE has made significant progress toward achieving its 2030 goal since its adoption. In 2020, 3CE had secured 23% of its retail load with renewable contracts. Today, even after significantly expanding its load, 3CE has secured 87% of its 2030 retail load with renewable contracts. With 17% of load remaining to achieve the 2030 goal, changing regulatory decisions and market volatility expose the procured 83% to significant uncertainty, and flexibility remains the key to ensuring 3CE is maximizing its ability to navigate future changes.
2 CPUC D.19-11-016 (3,300 MW reliability procurement); D.21-06-035 (11,500 MW Mid-Term Reliability procurement); D.23-02-040 (4,000 MW supplemental procurement); and D.26-02-057 (6,000 MW additional clean energy and reliability procurement).
3 CPUC D.22-06-050 (adopted the 24-hour Slice-of-Day Resource Adequacy framework); D.23-04-010 (established implementation requirements, including hourly resource counting and charging sufficiency); and D.24-06-004 (affirmed implementation of Slice-of-Day for the 2025 Resource Adequacy compliance year). 4 SB 100 (2018); CPUC D.19-06-023 (implemented increased RPS procurement requirements of 44% by 2024, 52% by 2027, and 60% by 2030 for all retail sellers).
DISCUSSION:
Recent regulatory decisions have changed the value and cost of 3CE’s portfolio in three significant ways.
Regulations Drive Price
Statewide policy goals and regulatory decisions can directly influence market conditions by changing how energy resources are valued.
The cost of committing to new renewable contracts has risen while the market value for the power those contracts deliver has fallen. Statewide, the cost of Renewable Portfolio Standard (RPS) contracts at signing has roughly doubled since 2020 due to increased renewable procurement requirements. Costs increased from an average of about $33 per MWh for contracts executed in 2019–2021 to about $67 per MWh for contracts executed in 2022–2025.
The value of the renewable attribute rose over the same period and then collapsed: the CPUC’s decisions setting the Market Price Benchmark for renewable energy credits increased their price from $15.10 per MWh in 2020 to $63.86 in 2025. Subsequently, they fell to $30.88 for 2026 and are forecast to fall to $12.69 for 2027.
The timing value of the energy itself has also eroded. In settled Northern California (NP15) day-ahead prices, the premium for on-peak power over off-peak power declined every year, from 23% in 2020 to negative 10% for January through August 2026, because solar output is concentrated in the hours for which the market no longer pays a premium. For several years, rising attribute values offset the declining value of the energy; they no longer do. Closing the remaining gap to the 2030 goal with additional renewable contracts of the same kind would therefore mean paying more for energy and attributes that are valued less in the market, thus placing PPA’s at a premium cost to the market.
Changes In How Resource Adequacy is Measured Requires 3CE to Buy More The procurement paradigm set by regulators can impact the value of contracts that have already been signed and future procurement strategy. Resource Adequacy now requires LSEs to demonstrate capacity for every hour of the day rather than a single monthly peak. Under the Slice-of-Day framework (adopted in D.22-06-050, implemented by D.23-04-010, tested in 2024 and binding from 2025), what had been one monthly megawatt total became 24 hourly positions on each month’s highest-need day.
The change fell hardest on community choice aggregators: in the CPUC’s September 2024 test-year results, 15 CCAs and eight electric service providers were deficient, compared with no investor-owned utilities, and the most constrained hours were in the evening. At the same time, the planning reserve margin has risen from 15% in 2020 to 18% for 2026–2027 (D.22-06-050, D.23-06-029, D.25-06-048), and new counting rules for storage in 2027 and for gas and storage in 2028 (D.26-07-008) will credit less capacity from the same resources.
As a result, 3CE must buy specific hours, not just megawatts, in a market that has proven highly volatile:
brokers quoted system RA for 2025 delivery at $36.46 per kW-month in April 2024 and at $2.72 in November 2025. Slice-of-Day did not start the price spike, which peaked in September 2023, but it changed what counts, and swings of this size favor buying in layers over time rather than all at once.
Increased Requirements Concentrate Procurement Challenges Through its IRP framework, the CPUC has directed LSEs to bring specified amounts of new capacity online by fixed dates: at least 11,500 MW of net qualifying capacity for 2023–2026 (D.21-06-035), an additional 4,000 MW for 2026–2027 (D.23-02-040), and 6,000 MW coming online in 2,000 MW tranches by June 1 of 2030, 2031 and 2032, including clean firm and long-duration storage (D.26-02-057).
Over the same period, 3CE’s executed long-term contracts have more than tripled, covering 83% of 2030 forecast retail energy today. That figure counts renewable energy only, on an annual basis. 3CE’s RA focused hybrid gas and BESS agreements or any remaining carbon-free allocations are not included, and it does not measure whether supply and demand balance in any given month, which the 2020 goal also sought to achieve as a stretch goal.
The remaining open position, roughly 17 percentage points, is where the portfolio’s flexibility now lies, and it is the most expensive part to fill because it requires energy whose hourly shape does not match the existing portfolio, that is exposed to curtailment, and that every other LSE is also seeking.
Looking further out, the contracted share falls from 79% in 2037 to about 32% by 2043 as several large contracts expire within a few years of one another, so long-term commitments signed now to close the 2030 gap would add to a re-contracting need that is already scheduled. 3CE remains committed to its 2030 goal, evidenced by the 83% of the required energy already under contract. Nevertheless, the changed circumstances highlight the importance of the Board’s initial guidance to maintain flexibility in how and when 3CE procures the remaining resources. Regulatory requirements and resource valuations have changed significantly since 2020, and market prices have experienced substantial volatility. Preserving flexibility, including around how the Board considers short and long term products as well as “clean” generation, will allow 3CE to respond to future changes, manage procurement costs, and continue advancing toward its 2030 goal.
Looking ahead, California’s evolving energy regulatory and market landscape will continue to change.
Significant developments, including the implementation of new markets through the Regional Organization for Western Energy (ROWE), the CPUC’s proposed Reliable and Clean Power Procurement Program (RCPPP), and continued reforms to resource adequacy and wholesale electricity markets, are
expected to influence how energy resources are valued, procured, and managed. Maintaining procurement flexibility will be essential for 3CE to navigate these changes, manage costs and risks, and advance its clean energy goals while prioritizing reliability and competitive rates.
FISCAL IMPACT:
Receipt of this report has no direct fiscal impact.
CONCLUSION:
Staff recommends that the Executive Committee receive this update and direct staff to continue evaluating pathways to achieve 3CE’s 100% clean and renewable energy goal, including a comparison of alternative procurement strategies, and to return to the Committee with that evaluation.
ATTACHMENT(S):
None
Staff Report Item 5
TO: 3CE Executive Committee
FROM: Charles McKee, General Counsel
SUBJECT: Consider waiving potential conflict of interest to allow outside counsel to represent 3CE and developers on unrelated matters and delegating authority for future waivers.
DATE: October 21, 2026
RECOMMENDATION:
Waive potential conflict of interest to allow outside counsel Clean Energy Counsel (CEC) to represent 3CE and developers on unrelated matters and delegate authority to CEO and General Counsel, jointly, future waivers.
BACKGROUND: Outside counsel who practice specialized areas of law obviously have clients that have business operations within that same subject area. In the clean energy sector, specialized legal counsel often represent buyers and developers/sellers in unrelated business matters. However, those same clients may have their own business relationships. For example, counsel may represent 3CE in power purchase agreement (PPA) negotiations with developer XX and be requested by XX to represent them in a different matter with another CCA or the CPUC.
This issue is before the Executive Committee because of its authority to manage litigation and claims.
DISCUSSION/ANALYSIS: When outside counsel represent different clients on the same matter or different matters in which the clients are adverse to each other, that is considered an “actual” conflict of interest. If outside counsel represented 3CE in PPA negotiations with a developer and also represented the developer before the CPUC in a matter against the interest of 3CE or in PPA negotiations against 3CE, then there is an actual conflict of interest. If outside counsel represented 3CE in PPA negotiations with a developer and also represented the developer in a tax matter or PPA negotiations with another CCA, then there is a “potential” conflict of interest that is unlikely to lead to an actual conflict of interest.
Here, CEC attorney Todd Larsen represents 3CE in PPA negotiations and desires for his other attorneys in his firm, CEC, to represent developers in three unrelated matters to our PPA negotiations. These matters are unlikely to involve 3CE and Mr. Larsen will not work on these other matters. Thus, we seek
the Committee’s waiver to allow CEC to represent developers with which 3CE is in business negotiations or relationships on three matters unrelated to 3CE where there is no actual conflict of interest.
In addition, when potential legal counsel conflict issues arise, they are usually not controversial and outside counsel understandably seeks a quick turnaround on waiver requests for business reasons.
Therefore, we also seek the Committee’s delegation to the CEO and General Counsel, jointly, the authority to waive future potential conflicts of interest with outside counsel that are unlikely to lead to actual conflicts of interest. The CEO and General Counsel will report to the Committee any such waivers.
CONCLUSION: The recommendation is for the Executive Committee to waive the potential conflict of interests allowing the law firm Clean Energy Counsel to represent developers in three matters unrelated to 3CE. In addition, delegate to the CEO and General Counsel, jointly, the authority to waive outside counsel potential conflicts on matters unrelated to 3CE and where an actual conflict of interest is unlikely.