AGENDA
City of Carlsbad | City of Del Mar | City of Solana Beach| City of Escondido | City of San Marcos Board of Directors Regular Meeting Agenda
January 27, 2022, 2:00 p.m.
City of Carlsbad|Virtual Meeting
Pursuant to Government Code Section 54953(3) (Assembly Bill 361), and in the interest of public health and safety, Clean Energy Alliance (CEA) is temporarily taking actions to prevent and mitigate the effects of the COVID-19 pandemic by holding CEA Joint Powers Authority meetings electronically or by teleconferencing. All public meetings will comply with public noticing requirements in the Brown Act and will be made accessible electronically to all members of the public seeking to observe and address the CEA Joint Powers Authority Board of Directors.
Members of the public can watch the meeting live through the You Tube Live Stream Link at:
https://thecleanenergyalliance.org/agendas-minutes/
or
https://www.youtube.com/channel/UCGXJILzlTUJOCZwVGpYoC8Q This is a view-only live stream. If the You Tube live stream experiences difficulties members of the public should access the meeting via the Zoom link below.
Members of the public can observe and participate in the meeting via Zoom by clicking:
https://us06web.zoom.us/j/81376410530
or telephonically by dialing:
(253) 215-8782
Meeting ID: 813 7641 0530
Members of the public can provide public comment in writing or orally as follows:
Written Comments: If you are unable to connect by Zoom or phone and you wish to make a comment, you may submit written comments prior to and during the meeting via email to:
[email protected]. Written comments received up to an hour prior to the commencement of the meeting will be announced at the meeting and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting.
Oral Comments: You can participate in the meeting by providing oral comments either: (1) online by using the raise hand function and speaking when called upon or (2) using your telephone by pressing *9 to raise your hand and speaking when called upon.
If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (“ADA”), please contact [email protected] prior to the meeting for assistance.
AGENDA
Clean Energy Alliance Board Meeting Agenda
January 27, 2022
2 CALL TO ORDER
ROLL CALL
FLAG SALUTE
BOARD COMMENTS & ANNOUNCEMENTS
PRESENTATIONS
PUBLIC COMMENT
APPROVAL OF MINUTES
Minutes of the Special Meeting – October 28, 2022
Minutes of the Regular Meeting – October 28, 2022
Minutes of the Special Meeting – November 18, 2022
Item 1: Clean Energy Alliance Board Elect Vice Chair to Serve for 2022 Term
RECOMMENDATION
Clean Energy Alliance Board Elect Vice Chair to serve for 2022 term.
Consent Calendar
Item 2: Reconsideration of the Circumstances of the COVID-19 State of Emergency to Determine Whether the Legislative Bodies of Clean Energy Alliance will Continue to Hold Meetings Via Teleconferencing and Making Findings Pursuant to Government Code Section 54943(e)
RECOMMENDATION
To continue meetings by teleconferencing pursuant to Government Code Section 54943(e), finding that: (1) the Board has reconsidered the circumstances of the state of emergency created by the COVID-19 pandemic; and (2) the state of emergency continues to directly impact the ability of the members to meet safely in person.
Item 3: Clean Energy Alliance Treasurer’s Report
RECOMMENDATION
Receive and file Clean Energy Alliance Treasurer’s Report.
AGENDA
Clean Energy Alliance Board Meeting Agenda
January 27, 2022
3 Item 4: Clean Energy Alliance Chief Executive Officer Operational, Administrative and Regulatory Affairs Update
RECOMMENDATION
1) Receive and file Community Choice Aggregation Update Report from Chief Executive Officer.
2) Receive and file Community Choice Aggregation Regulatory Affairs Report from Special Counsel.
Item 5: Review and Approve 2022 Clean Energy Alliance Legislative and Regulatory Policy Platform
RECOMMENDATION
Approve 2022 Clean Energy Alliance Legislative and Regulatory Policy Platform.
New Business
Item 6: Consider Providing Direction to Amend Clean Energy Alliance Joint Powers Agreement Regarding Chair and Vice Chair Term Limits
RECOMMENDATION
Provide direction related to amending Clean Energy Alliance Joint Powers Agreement regarding Chair and Vice Chair term limits.
Item 7: Discuss and Provide Direction Related to In Person Board Meeting Location
RECOMMENDATION
Discuss and provide direction related to in person Board meeting location.
Item 8: Declare Openings and Direct Application Process for Clean Energy Alliance Community Advisory Committee for the Cities of Escondido and San Marcos
RECOMMENDATION
Declare openings and direct application process for Clean Energy Alliance Community Advisory Committee for the cities of Escondido and San Marcos.
Item 9: Consider Approval of Community Advisory Committee 2022 Workplan and Meeting Schedule
RECOMMENDATION
Approve Community Advisory Committee 2022 Workplan and meeting schedule.
AGENDA
Clean Energy Alliance Board Meeting Agenda
January 27, 2022
4 Item 10: Receive Update and Provide Direction Regarding Clean Energy Alliance Green Impact Champions Program
RECOMMENDATION
Receive update and provide direction regarding Clean Energy Alliance Green Impact Champions Program.
BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS
NEXT MEETING: Regular Board Meeting February 24, 2022, 2pm, Del Mar, Virtual Clean Energy Alliance - Board of Directors
Special Meeting Minutes
October 28, 2021, 2:00 p.m.
Virtual Meeting
Teleconference Locations Per Government Code Section 54953(3) (Assembly Bill 361) CALL TO ORDER: Chair Becker called to order the special meeting of the Clean Energy Alliance at 2:00 p.m.
ROLL CALL: Board member Druker, Vice-Chair Bhat-Patel, Chair Becker BOARD COMMENTS & ANNOUNCEMENTS: None
FLAG SALUTE: Board member Druker led the flag salute.
PRESENTATIONS: None
PUBLIC COMMENT: None
New Business
Item 1: Adopt Resolution No. 2021-013 Authorizing Public Meetings to be Held via Teleconferencing Pursuant to Government Code Section 54953(e) and Making Findings and Determinations Regarding the Same
RECOMMENDATION
Adopt Resolution No. 2021- 013 authorizing public meetings to be held via teleconferencing pursuant to Government Code Section 54953(e) and making findings and determinations regarding the same.
General Counsel Greg Stepanicich presented the item commenting that on September 16, 2021, Governor Newsom signed AB 361 amending the Brown Act to allow local agencies to meet remotely during declared emergencies under certain conditions. To continue meeting remotely an agency must make periodic findings that: (1) the body has reconsidered the circumstances of the declared emergency; and (2) the emergency impacts the ability of the body’s members to meet safely in person, or state or local officials continue to impose or recommend measures to promote social distancing. These findings should be made not later than 30 days after teleconferencing for the first time pursuant to AB 361, and every 30 days thereafter.
Motion by Board Member Druker, second by Vice Chair Bhat-Patel to adopt Resolution No. 2021-013 authorizing public meetings to be held via teleconferencing pursuant to Government Code Section 54953(e) and making findings and determinations regarding the same.
Motion carried unanimously, 3/0.
ADJOURN: Chair Becker adjourned to the CEA Special Meeting at 2:06 pm. ___________________________________
Susan Caputo, MMC
Interim Board Clerk
Clean Energy Alliance - Board of Directors
Meeting Minutes
October 28, 2021, 2:00 p.m.
Virtual Meeting
Teleconference Locations Per Government Code Section 54953(3) (Assembly Bill 361) CALL TO ORDER: Chair Becker called to order the regular meeting of the Clean Energy Alliance at 2:06 p.m.
ROLL CALL: Board member Druker, Vice-Chair Bhat-Patel, Chair Becker FLAG SALUTE: Board member Druker led the flag salute during the special meeting.
BOARD COMMENTS & ANNOUNCEMENTS: None
PRESENTATIONS: None
PUBLIC COMMENT: None
APPROVAL OF MINUTES
Motion by Board Member Druker, second by Vice Chair Bhat-Patel to approve the minutes of the regular meeting held September 30, 2021.
Motion carried unanimously, 3/0.
Consent Calendar
Item 1: Clean Energy Alliance Treasurer’s Report
RECOMMENDATION
Receive and File Clean Energy Alliance Interim Treasurer’s Report.
Motion by Vice Chair Bhat-Patel, second Board Member Druker, to approve the consent calendar.
Motion carried unanimously, 3/0.
New Business
Item 2: Clean Energy Alliance Interim Chief Executive Officer Operational, Administrative and Regulatory Affairs Update
RECOMMENDATION
1) Receive and file Community Choice Aggregation Update Report from Interim CEO. 2) Receive and file Community Choice Aggregation Regulatory Affairs Report from Special Counsel.
CEO Barbara Boswell indicated the focus of her comments pertain to the expansion of Clean Energy Alliance and that at the City of Escondido City Council meeting of October 27, 2021, the City Council approved unanimously to join Clean Energy Alliance (CEA) and the second reading and adoption of the ordinance is scheduled for the November Council meeting, anticipating a 2023 launch date. In addition, the City of San Marcos has joining CEA under consideration for a 2023 launch and will be discussing at an upcoming workshop. Ms. Boswell also indicated that the cities of Vista and San Clemente have joining CEA under consideration for a 2024 launch and will keep the Board apprised of any developments.
Chair Becker acknowledged and conveyed gratitude to CEA staff for time spent educating prospective city partners and to the Sierra Club, the Hammond Climate Solution, Clean Earth for Kids, the Climate Action Campaign, Advisory Group members and the members of the public that attend meetings and advocate for Community Choice Aggregation (CCA), particularly CEA, and expressed excitement at bringing choice and cleaner energy to north county cities.
Board member Druker inquired regarding any possible challenges obtaining the needed energy to serve an expanded customer base. CEO Boswell indicated that no challenges or concerns are anticipated in procuring the necessary products.
CEO Boswell encouraged all to subscribe to CEA’s YouTube channel and Vice Chair Bhat-Patel reiterated subscribing and expressed gratitude to staff for the work on expansion of CEA.
Special Counsel Ty Tosdal congratulated all on the expansion of CEA and updated the Board on the following regulatory affairs: Customer Debt Proceeding indicating that customer charges are typically subject to the waterfall approach and that when a partial payment is made by a customer the payment goes to the utility instead of the CCA program. CPUC issued a proposed decision approving proportional payments between CCAs and Investor-owned Utilities (IOUs) when customer partial payments are made. In addition, the CPUC initiated a pilot program called Percentage of Income Payment Plan (PIPP) which sets a customer’s bill payment at an affordable percentage of income and that CCA programs are eligible to participate; CPUC Decision 19-11-016 ordered all Load Serving Entities (LSEs) to purchase System Resource Adequacy (RA) to meet a 3,300- Megawatt long-term need. CEA and other CCA programs formed after the decision received no allocation or RA credit and a modified Cost Allocation Mechanism to address cost recovery and other issues was never developed. Advocacy efforts are underway and updates will be brought to the Board; and regarding the Energy Resource and Recovery Account proceedings where SDG&E power rates, Power Charge Indifference Adjustment, and EcoChoice rates are set, the November testimony update is set for November 5 and will provide the best indicator of forthcoming rates.
CEA Board received and filed reports.
BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS: Chair Becker requested in-person meeting location(s) discussion be placed on an upcoming agenda.
Chair Becker adjourned the meeting at 2:28 pm.
___________________________________________
Susan Caputo, MMC
Interim Board Clerk
Clean Energy Alliance - Board of Directors
Special Meeting Minutes
November 18, 2021, 1:00 p.m.
Virtual Meeting
Teleconference Locations Per Government Code Section 54953(3) (Assembly Bill 361) CALL TO ORDER - Chair Becker called to order the special meeting of the Clean Energy Alliance at 1:00 p.m.
ROLL CALL: Board member Druker, Vice-Chair Bhat-Patel, Chair Becker FLAG SALUTE: Chair Becker led the flag salute.
BOARD COMMENTS & ANNOUNCEMENTS PRESENTATIONS: None
PUBLIC COMMENT: None
Consent Calendar
Item 1: Reconsideration of the Circumstances of the COVID-19 State of Emergency to Determine Whether the Legislative Bodies of Clean Energy Alliance will Continue to Hold Meetings Via Teleconferencing and Making Findings Pursuant to Government Code Section 54943(e)
RECOMMENDATION
Continue meetings by teleconferencing pursuant to Government Code Section 54943(e), finding that: (1) the Board has reconsidered the circumstances of the state of emergency created by the COVID-19 pandemic; and (2) the state of emergency continues to directly impact the ability of the members to meet safely in person.
Item 2: Consideration of Clean Energy Alliance December 17, 2021, Special Meeting for the Purpose of Considering the City of San Marcos Joining Clean Energy Alliance
RECOMMENDATION
Approve December 17, 2021, special meeting for the purpose of considering the City of San Marcos joining Clean Energy Alliance.
Motion by Board Member Druker, second by Vice Chair Bhat-Patel, to approve the consent calendar.
Motion carried unanimously, 3/0.
New Business
Item 3: Adopt Resolution No. 2021-014 Authorizing the City of Escondido to Become a Party to the Joint Powers Agreement and a Member of the Clean Energy Alliance
RECOMMENDATION
1) Adopt Resolution No. 2021-014 Authorizing the City of Escondido to Become a Party to the Joint Powers Agreement and a Member of the Clean Energy Alliance. 2) Direct staff to prepare an Implementation Plan Amendment reflecting a City of Escondido Launch in 2023 and return to the Board for approval no later than the December 30, 2021, Board Meeting.
3) Direct staff to include the City of San Marcos in the Implementation Plan Amendment contingent on the City of San Marcos adopting an ordinance establishing a community choice aggregation through Clean Energy Alliance.
CEO Barbara Boswell presented the item commenting that the City of Escondido has been evaluating CCE options for several years and On October 27, 2021, adopted a resolution to join CEA and on November 17, 2021, adopted an ordinance establishing a CCA program.
John Dalessi of Pacific Energy Advisors presented the assessment of the Escondido customer information analysis indicating the expansion would represent an approximate 85% increase in energy sales and that San Marcos would represent an approximate 52% increase and commented that the earliest start date could be January 2023, with April 2023 being the most advantageous. Mr. Dalessi gave an overview of the Fiscal Impact Summary for service to Escondido and San Marcos and concluded an overall positive fiscal impact under base case assumptions.
Board Member Druker inquired regarding additional staffing needs and regarding the method fees are paid to the buyers of the power supply.
CEO Boswell commented that a budget increase to accommodate staffing needs will take place although no specific positions have been identified yet and the Board will discuss staffing plan in early 2022 that will address the need for the upcoming fiscal year.
Mr. Dalessi responded regarding buyer fees commenting that power supply cost is per megawatt-hour (MWh) and there is no markup and Ms. Boswell clarified that CEA has contracted with Pacific Energy Advisors with a flat fee and no differentiation for additional customers and/or load.
Chair Becker expressed her pleasure at the expansion efforts and experiencing them come to fruition.
Motion by Board Member Druker, second by Vice Chair Bhat-Patel, to adopt Resolution No. 2021-014 authorizing the City of Escondido to become a party to the Joint Powers Agreement and a member of the Clean Energy Alliance; direct staff to prepare an Implementation Plan Amendment reflecting a City of Escondido Launch in 2023 and return to the Board for approval no later than the December 30, 2021, Board Meeting; direct staff to include the City of San Marcos in the Implementation Plan Amendment contingent on the City of San Marcos adopting an ordinance establishing a community choice aggregation through Clean Energy Alliance.
Motion carried unanimously, 3/0.
Due to technical issues earlier in the meeting General Counsel Lindsay Thorson recommended that the Board revisit the motion and vote of the consent calendar.
Motion by Board Member Druker, second by Vice Chair Bhat-Patel, to approve the consent calendar.
Motion carried unanimously, 3/0.
BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS
Vice Chair Bhat-Patel proposed that consideration of formal opposition of the changes to the Net Energy Metering (NEM) program that the CPUC will considered in December, be placed on the December 17 Special meeting agenda.
Motion by Board Member Druker, second by Vice Chair Bhat-Patel, to approve the consent calendar.
Motion carried unanimously, 3/0.
ADJOURN: Chair Becker adjourned the meeting at 1:38 pm. ______________________________________
Susan Caputo, MMC
Interim Board Clerk
Staff Report
DATE: January 27, 2022
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Chief Executive Officer
ITEM 1: Elect Clean Energy Alliance Board Vice Chair for Calendar Year 2022
RECOMMENDATION
The Clean Energy Alliance Board elect a Vice Chair for Calendar Year 2022.
BACKGROUND AND DISCUSSION
Pursuant to Section 5.2 of the Clean Energy Alliance (“CEA”) Joint Powers Agreement (“JPA”) which establishes the requirement for the Board to elect a Chair and Vice Chair from the Board of Directors for each calendar year, the CEA Board re-elected Carlsbad Board Member Priya Bhat-Patel as Vice Chair for the 2022 term. Subsequent to being elected, the City of Carlsbad made changes to its Board representatives and Vice Chair Bhat-Patel was appointed to serve as Carlsbad’s Alternate Board Member with Teresa Acosta appointed as the Primary Carlsbad Board Member. As a result of this change, it is appropriate for the CEA Board to elect a replacement to fill the Vice-Chair position.
FISCAL IMPACT
There is no fiscal impact associated with this item.
ATTACHMENTS
None
Staff Report
DATE: January 27, 2022
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Chief Executive Officer
ITEM 2: Reconsideration of the circumstances of the COVID-19 state of emergency to determine whether the legislative bodies of Clean Energy Alliance will continue to hold meetings via teleconferencing and making findings pursuant to Government Code Section 54953(e)
RECOMMENDATION
To continue meetings by teleconferencing pursuant to Government Code Section 54953(e), find that: (1) the Board has reconsidered the circumstances of the state of emergency created by the COVID-19 pandemic; and (2) the state of emergency continues to directly impact the ability of the members to meet safely in person.
BACKGROUND AND DISCUSSION
On September 16, 2021, Governor Newsom signed AB 361 amending the Brown Act to allow local agencies to meet remotely during declared emergencies under certain conditions. AB 361 authorizes local agencies to continue meeting remotely without following the Brown Act’s standard teleconferencing provisions, including the requirement that meetings be conducted in physical locations, under specified conditions. Namely, the meeting is held during a state of emergency proclaimed by the Governor and either of the following applies: (1) state or local officials have imposed or recommended measures to promote social distancing; or (2) the agency has already determined or is determining whether, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.
The Board of Directors and CEA’s other legislative bodies have met using teleconferencing throughout the COVID-19 pandemic to protect the health and safety of the public and staff. On October 28, 2021, the Board of Directors determined that the factual circumstances exist for CEA to continue to hold meetings pursuant to AB 361. Specifically, on March 4, 2020, Governor Newsom declared a State of Emergency in response to the COVID-19 pandemic (the “Emergency”). The Emergency continues to exist. In addition, the Centers for Disease Control and Prevention continue to advise that COVID-19 spreads more easily indoors than outdoors and that people are more likely to be exposed to COVID-19 when they are closer than six feet apart from others for longer periods of time. Based on this advice and as a result of the emergency, the Board determined that meeting in person presents imminent risks to the health or safety of attendees.
To continue meeting remotely pursuant to AB 361, an agency must make periodic findings that: (1) the body has reconsidered the circumstances of the declared emergency; and (2) the emergency impacts the ability of the body’s members to meet safely in person, or state or local officials continue to impose or recommend measures to promote social distancing. These findings should be made not later than 30 days after teleconferencing for the first time pursuant to AB 361, and every 30 days thereafter.
Due to the ongoing emergency, the need to promote social distancing to reduce the likelihood of exposure to COVID-19, and the imminent risks to the health or safety of meeting attendees, staff recommends that the legislative bodies of CEA hold public meetings via teleconferencing pursuant to Government Code Section 54953(e) and make the requisite findings to continue to do so.
FISCAL IMPACT
There is no fiscal impact by this action.
ATTACHMENTS
None.
Staff Report
DATE: January 27, 2022
TO: Clean Energy Alliance Board of Directors
FROM: Marie Marron Berkuti, Interim Treasurer
ITEM 3: Clean Energy Alliance Treasurer’s Report
RECOMMENDATION
Receive and File Clean Energy Alliance (CEA) Interim Treasurer’s Report for December 2021.
BACKGROUND AND DISCUSSION
This report provides the Board with the following financial information through December 31, 2021:
• Statement of Financial Position (Unaudited) – Reports assets, liabilities, and financial position of the CEA as of December 31, 2021.
• Statement of Revenues, Expenses and Changes in Net Position (Unaudited) for the six months ended December 31, 2021.
• Budget to Actuals Comparison Schedule (Unaudited) – Reports actual revenues and expenditures adopted annual budget as of December 31, 2021. • Budget Reconciliation to Statement of Revenues, Expenses and Changes in Net Position
• List of Payments Issued – Reports payments issued for the months of October 2021 through December 2021.
As of December 31, 2021, liabilities represent invoices received for services, but not yet paid.
The noncurrent accounts payable are amounts due to the cities of Carlsbad, Del Mar and Solana Beach for the $150,000 advance made by each member agency for start-up costs and services provided to CEA for the period December 2019 to June 2020. These invoices are scheduled to be paid three years from the time CEA is operational.
January 27, 2022
CEA Treasurer’s Report
DECEMBER 31, 2021 REPORTS
STATEMENT OF FINANCIAL POSITION (Unaudited)
ASSETS
Current Assets
Cash Operating Account $ 997,747.52
Lockbox Account 484,494.00
Investment Account 1,750,670.94
A/R Customers 5,284,272.29
A/R NEMS 2,423,322.20
A/R Miscellaneous 148,000.00
Prepaid Expense 351,479.17
Total Current Assets 11,439,986.12
Noncurrent Assets
Deposits
CCA Bond 147,000.00
CAISO Deposit 500,000.00
Collateral Deposits 1,117,000.00
Total Noncurrent Assets 1,764,000.00
Total Assets 13,203,986.12
LIABILITIES
Current Liabilities
Accounts Payable 10,182,651.30
Accrued Liabilities 54,468.33
Electric Energy Surcharge 49,213.10
Total Current Liabilities 10,286,332.73
Noncurrent Liabilities
Due to Member Agencies
Due to City of Carlsbad 186,571.79
Due to City of Del Mar 151,892.97
Due to City of Solana Beach 165,552.69
Total Due to Member Agencies 504,017.45
JPMorgan Revolving Credit Agreement 5,750,000.00
Total Noncurrent Liabilities 6,254,017.45
Total Liabilities 16,540,350.18
NET POSITION
Unrestricted (deficit) (3,336,364.06)
Total Net Position $ (3,336,364.06)
CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
As of December 31, 2021
January 27, 2022
CEA Treasurer’s Report
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION (Unaudited)
BUDGET TO ACTUALS COMPARISON SCHEDULE
At its June 24, 2021, board meeting, the CEA Board adopted the Fiscal Year (FY) 2021/22 budget approving $51,547,500 in total operating expenses and uses of funds. Through December 2021, $35,912,775.96 has been expended, leaving $15,634,724.04.
At its January 21, 2021 board meeting, the CEA Board approved a Credit Agreement with JPMorgan for $6MM to provide start-up funding for cash flow needs and a line of credit should the need arise. Drawdowns through June 30, 2021, equaled $5MM. A drawdown was made on July 12, 2021, in the amount of $250,000 and on September 9, 2021, in the amount of $500,000 for a total borrowing of $5,750,000.
The Budget to Actuals Comparison Schedule is shown on the next page.
Operating Revenues $ 34,918,824.07
Operating Expenses
Power Supply $ 34,356,292.81
Data Manager 420,592.00
Staffing/Consultants 76,402.50
Legal Services 111,107.38
Professional Services 353,214.42
Audit Services 8,240.00
Software & Licenses 6,587.00
Membership Dues 58,645.50
Print/Mail Services 42,693.02
Bank Fees 1,384.38
Miscellaneous 2,759.74
Total Operating Expenses 35,437,918.75
Operating Income (Loss) (519,094.68)
Non-Operating Revenues (Expenses)
Interest Revenue 670.94
Interest Expense (110,528.15)
Total Non-Operating Revenue (Expenses) (109,857.21)
Change in Net Position (628,951.89)
Net Position at beginning of period (2,707,412.17)
Net Position at end of period $ (3,336,364.06)
CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
For the six months ended December 31, 2021
January 27, 2022
CEA Treasurer’s Report
ADOPTED
BUDGET ACTUALS VARIANCE
Operating Revenues
Energy Sales $ 53,573,000.00 $ 34,908,118.57 $ 18,664,881.43 Miscellaneous Income - 10,705.50 (10,705.50)
Total Operating Revenue 53,573,000.00 34,918,824.07 18,654,175.93 Operating Expenses
Power Supply 48,700,000.00 34,356,292.81 14,343,707.19
Data Manager 811,000.00 420,592.00 390,408.00
Staffing/Consultants 235,700.00 76,402.50 159,297.50
Legal Services 510,000.00 111,107.38 398,892.62
Professional Services
Technical 283,200.00 154,807.50 128,392.50
Schedule Coordinator 155,400.00 70,200.00 85,200.00
Marketing 115,000.00 47,479.48 67,520.52
SDGE Service Fees 270,000.00 79,852.44 190,147.56
Other Professional Services 25,000.00 875.00 24,125.00
848,600.00 353,214.42 495,385.58
Audit Services 25,000.00 8,240.00 16,760.00
Software & Licenses 9,100.00 6,587.00 2,513.00
Membership Dues 116,000.00 58,645.50 57,354.50
Print/Mail Services 43,100.00 42,693.02 406.98
Advertising 15,000.00 - 15,000.00
Insurance 7,000.00 - 7,000.00
Bank Fees 2,000.00 1,384.38 615.62
Miscellaneous - 2,759.74 (2,759.74)
Total Operating Expenses 51,322,500.00 35,437,918.75 15,884,581.25 Operating Income (Loss) 2,250,500.00 (519,094.68) 2,769,594.68 Non-Operating Revenue (Expenses)
Interest Revenue - 670.94 (670.94)
Interest Expense (225,000.00) (110,528.15) (114,471.85) Total Non-Operating Revenue (Expenses) (225,000.00) (109,857.21) (115,142.79) Other Sources and (Uses)
Sources
JPMorgan Credit Agreement - 750,000.00 (750,000.00)
Uses
Collateral Deposits-SDG&E - (385,000.00) 385,000.00
Total Sources (Uses) - 365,000.00 (365,000.00)
$ 2,025,500.00 $ (263,951.89) $ 2,289,451.89
-
$ 51,547,500.00 $ 35,912,775.96 $ 15,634,724.04
Total Operating and Non-Operating
Expenses and Uses of Funds
CLEAN ENERGY ALLIANCE
BUDGET TO ACTUALS COMPARISON SCHEDULE
For the six months ended December 31, 2021
Net Increase (Decrease) in Available Fund
Balance
January 27, 2022
CEA Treasurer’s Report
BUDGET RECONCILIATION TO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET
POSITION
LIST OF PAYMENTS ISSUED
The reports on the following pages provide the detail of payments issued by CEA for the months of October 2021 through December 2021. All payments were within approved budget.
Net Increase (Decrease) in Available Fund Balance
per Budgetary Comparison Schedule $ (263,951.89)
Adjustments needed to reconcile to the changes
in Net Position in the Statement of Revenues,
Expenses, and Changes in Net Position
Subtract Advances-JPMorgan Revolving Credit Agreement (750,000.00) Add back:
Collateral Deposits-SDG&E 385,000.00
Change in Net Position $ (628,951.89)
CLEAN ENERGY ALLIANCE
BUDGET RECONCILIATION TO STATEMENT OF
REVENUES, EXPENSES, AND CHANGES IN NET POSITION
For the six months ended December 31, 2021
January 27, 2022
CEA Treasurer’s Report
Date Via Vendor Description Amount
10/04/21 Wire The Energy Authority (TEA) 09/10/21-09/16/21 $ 289,856.54 10/12/21 Wire The Energy Authority (TEA) 09/17/21-09/23/21 86,088.73 10/18/21 Wire The Energy Authority (TEA) 09/24/21-09/30/21 38,924.30 10/18/21 RCBBillPay SDG&E For Services Rendered under Sch CCA-June 2021 16,337.04 10/18/21 RCBBillPay SDG&E For Services Rendered under Sch CCA-May 2021 781.20 10/20/21 Wire Direct Energy Sept 2021 PWR-CAP 254,500.00 10/20/21 Wire SDG&E Sept 2021 RA Sales 623,733.00
10/20/21 RCBBillPay SDG&E For Services Rendered under Sch CCA-July 2021 19,770.67 10/20/21 ACH USPS 10/20/21 Mailing 199.93
10/25/21 Wire Powerex PCC1 Installment 2 of 3 & CF PCC2 Installment 5 of 6 206,791.67 10/25/21 Wire The Energy Authority (TEA) 10/01/21-10/07/21 342,157.22 10/26/21 Checks CEA Customers NEM Term Cash Out-July 2021 3,828.54 10/27/21 ACH USPS 10/26/21 Mailing 188.71
10/28/21 Checks CEA Customers NEM Term Cash Out-Aug 2021 1,082.15 10/28/21 ACH California Dept Tax & Fee Admin Q3 093021 56,423.00 10/28/21 Checks CEA Customers NEM Term Cash Out-Sept 2021 2,214.73 10/29/21 ACH Braun Blaising Smith Wynne Aug 2021 Legal 567.09 10/29/21 ACH Tosdal APC Sept 2021 Regulatory Counsel Svcs 7,880.00 10/29/21 ACH Tripepi, Smith & Associates, Inc. Oct 2021 Retainer 7,891.58 10/29/21 ACH Keyes & Fox LLP Sept 2021 ERRA Forecast Counsel Services 8,582.75 10/29/21 ACH Bayshore Consulting Group, Inc Sept 2021 CEO/Clerk Services 9,293.75 10/29/21 ACH The Energy Authority (TEA) Oct 2021 Scheduling Coordinator & CRR Management Services 11,700.00 10/29/21 ACH Richards, Watson & Gershon Aug 2021 General Counsel Svcs 938.00 10/29/21 ACH Hall Energy Law PC Sept 2021 Energy Procurement Counsel Svcs 3,927.00 10/29/21 ACH Pacific Energy Advisors, Inc Sept 2021 Technical Consulting Svcs 23,600.00 10/29/21 ACH CalCCA Q2 FY 21-22 30,246.00
10/29/21 ACH Calpine Sept 2021 Services - 69,939 meters @ $1.00 69,939.00 10/29/21 ACH Neyenesch Printers Invoices through 10/27/21 4,097.25 Total October Payments-Operating Account $ 2,121,539.85 10/25/2021 Wire Morgan Stanley Capital Group, Inc. August 2021 Power Sale 641,146.54 10/25/2021 Wire Shell Oil North America August 2021 Power Sale 1,833,823.72 10/25/2021 Wire Direct Energy Aug 2021 PWR-PHYS (Custom Product) 2,270,636.52 Total October Payments-Lockbox Account $ 4,745,606.78
Clean Energy Alliance
List of Payments Issued October 2021
January 27, 2022
CEA Treasurer’s Report
Date Via Vendor Description Amount
11/01/21 Wire The Energy Authority (TEA) Jan 2022 Capacity Purchases $ 69,000.00 11/01/21 ACH The Energy Authority (TEA) 10/08/21-10/14/21 374,578.73 11/01/21 RCBBillPay SDG&E For Services Rendered under Sch CCA-Aug 2021 15,655.66 11/02/21 Wire JPMorgan Interest payments due - 3 months 54,677.81 11/08/21 Wire The Energy Authority (TEA) 10/15/21-10/21/21 290,640.08 11/08/21 ACH OneStream Networks, LLC Oct 2021 Telephone 209.77 11/08/21 ACH Marie Marron Berkuti May and June Treasurer Services 7,009.17 11/08/21 ACH Tripepi, Smith & Associates, Inc. Sept 2021 Retainer 7,891.58 11/12/21 ACH USPS 11/09/21 Mailing 209.09
11/15/21 Wire The Energy Authority (TEA) 10/22/21-10/28/21 251,947.05 11/22/21 Wire The Energy Authority (TEA) 10/29/21-11/04/21 151,883.71 11/22/21 ACH Direct Energy Oct 2021 PWR-CAP 179,500.00
11/22/21 Wire SDG&E Oct 2021 RA Sales 688,789.00
11/22/21 Wire Powerex PCC1 Installment 3 of 3 & CF PCC2 Installment 6 of 6 206,791.67 11/26/21 ACH USPS 11/26/21 Mailing 186.81
11/29/21 Wire The Energy Authority (TEA) 11/05/21-11/11/21 221,598.63 11/29/21 ACH Richards, Watson & Gershon Sept 2021 General Counsel Svcs 3,015.00 11/29/21 ACH Keyes & Fox LLP Oct 2021 ERRA Forecast Counsel Services 4,776.40 11/29/21 ACH Richards, Watson & Gershon Oct 2021 General Counsel Svcs 1,141.03 11/29/21 ACH Hall Energy Law PC Oct 2021 Energy Procurement Counsel Svcs 2,921.00 11/29/21 ACH Tripepi, Smith & Associates, Inc. Nov 2021 Retainer 7,891.58 11/29/21 ACH Tosdal APC Oct 2021 Regulatory Counsel Svcs 8,380.50 11/29/21 ACH The Energy Authority (TEA) Sept 2021 Scheduling Coordinator & CRR Management Services 11,700.00 11/29/21 ACH Pacific Energy Advisors, Inc Oct 2021 Technical Consulting Svcs 30,425.00 11/29/21 ACH Calpine Oct 2021 Services - 69,874 meters @ $1.00 69,874.00 11/29/21 ACH Bayshore Consulting Group, Inc Oct 2021 Services 7,895.68 Total November Payments-Operating Account $ 2,668,588.95 11/23/2021 Wire Exelon Generation Company,LLC Sept 2021 PWR-PHYS 299,006.28 11/23/2021 Wire Morgan Stanley Capital Group, Inc. Sept 2021 Power Sale 470,153.31 11/23/2021 Wire Shell Oil North America Sept 2021 Power Sale 1,796,875.90 11/23/2021 Wire Direct Energy Sept 2021 PWR-PHYS 2,073,714.75 Total November Payments-Lockbox Account $ 2,566,035.49
Clean Energy Alliance
List of Payments Issued November 2021
January 27, 2022
CEA Treasurer’s Report
FISCAL IMPACT
There is no fiscal impact associated with these items.
Date Via Vendor Description Amount
12/01/21 Wire The Energy Authority (TEA) Feb 2022 Capacity Purchases $ 46,500.00 12/01/21 Wire Pacific Gas & Electric Performance Assurance--CEA RPS Energy Sale (PG&E Log No. 33 147,000.00 12/06/21 Wire The Energy Authority (TEA) 11/12/21-11/16/21 195,371.09 12/08/21 ACH USPS 12/08/21 Mailing 128.69
12/13/21 ACH The Energy Authority (TEA) 11/17/21-11/23/21 145,724.15 12/13/21 ACH OneStream Networks, LLC Nov 2021 Telephone 182.25 12/13/21 ACH Tripepi, Smith & Associates, Inc. CTCT Account Upgrade 3,383.00 12/15/21 Checks CEA Customers NEM Term Cash Out-Oct 2021 2,436.78 12/20/21 Wire Direct Energy Nov 2021 PWR-CAP 179,500.00 12/20/21 ACH The Energy Authority (TEA) 11/24/21-12/02/21 180,260.01 12/20/21 ACH SDG&E Nov 2021 RA Sales 688,719.00
12/23/21 ACH USPS 12/21/21 Mailing 221.18
12/27/21 Wire JPMorgan Q2 92 days $250,000 2.150000% (unutilized) 1,373.61 12/27/21 Wire Powerex PCC1 Installment 1 of 12 (2022) & CF Installment 1 of 6/ PCC2 In 144,479.17 12/27/21 Wire The Energy Authority (TEA) 12/03/21-12/09/21 319,373.12 12/27/21 Wire Tripepi, Smith & Associates, Inc. Dec 2021 Retainer 9,187.58 12/27/21 ACH Hall Energy Law PC Nov 2021 Energy Procurement Counsel Svcs 254.00 12/27/21 ACH Neyenesch Printers Invoices through 12/24/21 844.11 12/27/21 ACH Keyes & Fox LLP Nov 2021 ERRA Forecast Counsel Services 5,391.25 12/27/21 ACH The Energy Authority (TEA) Nov 2021 Scheduling Coordinator & CRR Management Services 11,700.00 12/27/21 ACH Pacific Energy Advisors, Inc Nov 2021 Technical Consulting Svcs 26,347.50 12/27/21 ACH Calpine Nov 2021 Services - 69,808 meters @ $1.00 69,808.00 12/27/21 ACH Tosdal APC Nov 2021 Regulatory Counsel Svcs 5,842.50 12/27/21 ACH Bayshore Consulting Group, Inc Nov 2021 CEO Services 10,478.75 12/28/21 Wire SEMPRA Cash Collateral Deposits-Cash Collateral Deposits-CEA/Sempra W 385,000.00 12/30/21 Checks CEA Customers NEM Term Cash Out-Nov 2021 1,469.64 Total December Payments-Operating Account $ 2,668,588.95 12/23/21 Wire Shell Oil North America Oct 2021 Power Sale 1,246,703.02 12/23/21 Wire Exelon Generation Company,LLC Oct 2021 PWR-PHYS 1,261,896.02 12/23/21 ACH Morgan Stanley Capital Group, Inc. Oct 2021 Power Sale 430,102.14 Total December Payments-Lockbox Account $ 2,938,701.18
Clean Energy Alliance
List of Payments Issued December 2021
Staff Report
DATE: January 27, 2022
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Chief Executive Officer
ITEM 4: Clean Energy Alliance Operational, Administrative and Regulatory Affairs Update
RECOMMENDATION
1) Receive and File Operational and Administrative Update Report from Chief Executive Officer. 2) Receive Community Choice Aggregation Regulatory Affairs Report from Special Counsel.
BACKGROUND AND DISCUSSION
This report provides an update to the Clean Energy Alliance (CEA) Board regarding the status of operational, administrative, and regulatory affairs activities.
OPERATIONAL UPDATE
Expansion of Clean Energy Alliance
The cities of Oceanside, Vista, and San Clemente have expressed interest in joining CEA with a 2024 service launch. The assessment reports related to the service expansion to these cities will be prepared in the spring of 2022. Assuming the results of the assessment report is favorable, CEA would anticipate the cities considering resolutions to join CEA and ordinances to establish a Community Choice Aggregation in early summer 2022.
Call Center Activity
The chart below reflects call activity to CEA’s call center through December 31, 2021:
January 27, 2022
Admin & Regulatory Update
Calls to the call center have leveled off at an average 200 calls per month with the most common topic being billing inquiries.
January 27, 2022
Admin & Regulatory Update
Calls are being answered within 15 seconds on average, with an average duration of approximately 10 minutes.
The chart below reflects the monthly and cumulative opt-outs for CEA.
January 27, 2022
Admin & Regulatory Update
CEA realized a net increase in enrollments in December with an increase of 91 service accounts and overall participation rate of 92.01%.
Green Impact enrollments continue to increase, with 370 customers enrolled. Customers also have the option to opt down to Clean Impact, of which 110 have selected.
Resource Adequacy Compliance
As a load serving entity serving customers in 2021, CEA has an obligation to procure Resource Adequacy (RA), based on quantities allocated by CPUC and California Independent System Operator (CAISO). RA procurements do not supply any energy to CEA or its customers, rather it commits the seller to be available to supply energy to the grid if called upon by the CAISO and reduce the possibility of outages.
This process is key to ensuring grid reliability. CEA successfully procured all its 2021-2023 RA requirements and is fully compliant with its RA obligation. CEA has met its 2022-2024 RA obligations, which were required to be completed by October 2021.
Contracts $50,000 - $100,000 entered into by Chief Executive Officer
VENDOR DESCRIPTION AMOUNT
None
January 27, 2022
Admin & Regulatory Update
REGULATORY UPDATE
CEA’s regulatory attorney, Ty Tosdal, will provide an update to the Board on current regulatory activities (Attachment A).
FISCAL IMPACT
There is no fiscal impact by this action.
ATTACHMENTS
Attachment A – Tosdal APC Regulatory Update Report
Clean Energy Alliance
Board Update
January 27, 2022
Item 4 Attachment
Overview
• Update on NEM 3.0 Proceeding (R. 20-08-020)
• Emergency Load Reduction Program (R. 20-11-003)
• SDG&E Rate Applications
• TOU-ELEC (A. 21-09-001)
• Real Time Pricing Pilot (A. 21-12-006)
Update on NEM 3.0 Proceeding
• NEM 3.0 Decision will be delayed and does not appear on CPUC agenda for January 27, 2022. Final decision date remains to be determined.
• Governor Newsom reported to state that “We still have some work to do” on the proposed decision.
• Oral arguments have been canceled and have not been rescheduled. • CEA submitted a letter to CPUC President Reynolds and Commissioners regarding changes. See attached.
Emergency Load Reduction Program
• Emergency Load Reduction Program (“ELRP”) is designed to provide compensation to customers for reducing energy consumption or increasing electricity supply during critical periods of grid usage.
• Compensation for most customers set at $2/KWH and paid for reduction of use during evening hours, 4 to 9 pm.
• D. 21-12-015 expanded eligibility requirements to include unbundled and bundled residential customers and other customer groups.
• CEA plans to notify SDG&E and participate in the ELRP program.
SDG&E TOU-ELEC
• SDG&E filed an application for an untiered time-of-use rate designed to promote electrification.
• To be eligible, customers must possess (1) an electric vehicle, (2) battery or (3) heat pump for water heating or climate control.
• Proposed rate includes a fixed charge.
• SDG&E proposes to make rate available to CCA customers. • CEA and SDCP have filed a response and are participating in the proceeding.
SDG&E Real Time Pricing Pilot
• SDG&E filed an application for a Real Time Pricing (“RTP”) pilot program. • Generation costs set at CAISO day ahead price, plus adders. • SDG&E proposes to make rate available to CCA customers. • Costs to be recovered in distribution rates, raising issues related to cross-subsidization. • CEA and SDCP have filed a response and are participating in the proceeding. 1200 Carlsbad Village Drive ï Carlsbad, CA 92008 ï 760-434-2808 thecleanenergyalliance.org
January 19, 2022
President Alice Reynolds
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
RE: PROPOSED DECISION IN NET ENERGY METERING RULEMAKING (R. 20-08-020) Dear President Reynolds,
Clean Energy Alliance (“CEA”) submits this letter to express serious concerns with the Proposed Decision, issued on December 13, 2021, in the Net Energy Metering (“NEM”) proceeding, Rulemaking (“R.”) 20-08-020.
1 The solar and storage industry has grown
tremendously over the years, such that it now plays a critical role in developing and expanding the supply of renewable energy. Unfortunately, the Proposed Decision eliminates long-standing incentives for customer generators, penalizes them for the size of their solar systems and upends the economics of rooftop solar. Adopting the Proposed Decision in its current form would result in widespread negative impacts on the solar industry.
CEA recognizes that the Proposed Decision addresses important equity concerns raised by the Investor-Owned Utilities (“IOUs”) and other parties, and supports exemptions from certain charges and beneficial rate components designed for low-income customers. However, the Proposed Decision would render the NEM rate design entirely unrecognizable to existing NEM customers and customers who have done their research and are planning to install solar on their homes and businesses in the near future. Meanwhile, new NEM customers would face a dramatically altered economic landscape that fails to recognize the value of their contribution to renewable generation.
The Proposed Decision does away with the rate structure that has been in place for rooftop solar owners for years and replaces it with a rate structure that penalizes them for generating energy and reducing their use of energy from the grid. Under the Proposed Decision, compensation for net surplus energy is set by an Avoided Cost Calculator rather than set at the retail rate, resulting in a substantial reduction in the amount that rooftop solar owners will be credited for power they supply to the grid. Furthermore, the Grid Participation Charge of $8/KW per month is excessive and should be reduced, restructured or eliminated for storage owners who provide grid benefits. Grandfathering and restrictions on TOU periods should also be made less restrictive in the interest of fairness and customer choice. In addition, the Market Transition Credit should be increased and extended to prevent rate shocks. CEA respectfully urges the Commission to amend the Proposed Decision to address these specific problems, which are discussed in more detail below.
1 Order Instituting Rulemaking to Revisit Net Energy Metering Tariffs Pursuant to Decision 16-01-044, and to Address Other Issues Related to Net Energy Metering, Rulemaking 20-08-020, filed August 27, 2020. 2 Background
CEA is a Joint Powers Authority (“JPA”) that was established in 2019 to operate a community choice aggregation program (“CCA”) to serve customers in the City of Carlsbad, the City of Solana Beach, and the City of Del Mar, all located in San Diego County. CEA’s primary objectives in implementing this program are to procure an electric supply portfolio with higher renewable content than the incumbent utility, San Diego Gas & Electric Company (“SDG&E”), to provide cost competitive electric services when compared to SDG&E, to gain local control in rate setting to provide long-term rate stability for residents and businesses, and to meet climate action plan goals of the member cities. CEA submitted its Implementation Plan in December 2019 and intends began serving customer load earlier this year. Two new cities, San Marcos and Escondido, have recently joined CEA and customers in those jurisdictions will be enrolled in 2023.2
Grid Participation Charge
The Proposed Decision adopts a fixed Grid Participation Charge of $8/KW per month for residential customers.3 By most accounts, the average residential solar system in California is approximately 6 KW, so rooftop solar customers would pay an additional $48 per month on average to access the grid. This is a substantial new charge that rooftop solar owners will be required to pay each month going forward.
It is noteworthy that the Grid Participation Charge is not based on the amount of energy produced or used, unlike many other charges that make up a customer’s bill, but is instead a flat fee that is determined based on the size of the solar system. The larger the system, the higher the fee. While the Proposed Decision exempts low-income customers from the fee, the fact that the fee remains fixed and cannot be mitigated will provide a strong disincentive to prospective NEM customers.
While low-income customers have been exempted from the Grid Participation Charge, other customers will now face a monthly penalty for installing solar and storage, and the result is likely to be a steep reduction in rooftop solar and storage installations. CEA cannot support the Grid Participation Charge in its current form. The charge should be reduced, restructured or eliminated for customers installing storage in order to avoid adverse effects.
Market Transition Credit
The Proposed Decision adopts a Market Transition Credit (“MTC”) between $0 and $5.25/KW depending on IOU territory and customer group. When eligible customers begin receiving the MTC, the amount steps down 25% each year, ultimately reaching zero after year four. While the MTC does provide a transition of sorts, given the deep cuts to net surplus compensation, it is not set at an amount that is high enough and does not last long enough to prevent severe rate shocks or maintain strong incentives for adoption of rooftop solar and 2 Clean Energy Alliance, Addendum No.1 to the Community Choice Aggregation Implementation Plan and Statement of Intent to Address Expansion to the Cities of Escondido and San Marcos, December 30, 2021.
3 Proposed Decision at 127.
4 Copy: Commissioner Clifford Rechtschaffen
Commissioner Darcie Houck
Commissioner Genevieve Shiroma
Commissioner John Reynolds
Service List R. 20-08-020
Staff Report
DATE: January 27, 2022
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Chief Executive Officer
ITEM 5: Review and Approve the 2022 Clean Energy Alliance Legislative and Regulatory Policy Platform
RECOMMENDATION
Approve Clean Energy Alliance 2022 Legislative and Regulatory Policy Platform.
BACKGROUND AND DISCUSSION
Clean Energy Alliance’s (CEA) Legislative and Regulatory Policy Platform (Platform) states that the Board shall review and update the Platform as appropriate each January. The Platform serves as a guide to the CEA Board and staff in their advocacy efforts related to policy matters of interest at the state legislature and California Public Utilities Commission (CPUC). It allows both Board Members and staff to pursue actions at the legislative and regulatory levels in a consistent manner and with the understanding that they are pursuing actions in the best interest of CEA and its mission, member agencies and customers. It provides guidance to the Chief Executive Officer to support or oppose positions that should be taken on legislative and regulatory matters that come before the California Community Choice Association (CalCCA) Board of Directors.
The adopted Platform was developed to be consistent with the CEA Joint Powers Authority (JPA) Agreement. Specifically, the JPA Agreement identifies the following purposes of CEA:
● Procuring/developing electrical energy for customers; ● Addressing climate change by reducing energy-related greenhouse gas emissions; ● Promoting electrical rate price stability and cost savings; ● Fostering consumer choice;
● Local economic development, such as job creation, local energy programs, and local power development.
Four basic principles were developed to ensure CEA’s ability to achieve its purposes as stated above.
January 27, 2022
Legislative and Regulatory Policy
Platform
The Platform is centered around these four principles:
1. Protecting CEA’s local control for the purpose of preserving the ability to self-procure power resources, to self-determine rates and the energy programs offered to residents, businesses, and the communities it serves, through the mechanisms of local governance.
2. Ensuring fair treatment of CEA customers by the CPUC and other state agencies.
3. Supporting recognition that electricity is an essential service, and that CEA should have the ability to set electric rates that are affordable and competitive to the utilities.
4. Pursuing environmental initiatives that exceed minimum State mandates, promote the growth in renewable energy capacity at the local level, encourage clean energy adoption by CEA customers, and reduce fossil fuel dependency.
Taking into account CEA’s purpose and the principles above, the Platform establishes the following positions:
● CEA will support legislation and regulatory actions which enables, protects, and enhances the development and expansion of Community Choice Aggregation (CCA) programs, and that supports CCA independence in procurement, program deployment, management and decision making.
● CEA will support legislation and regulatory actions which allows CEA to develop and procure local energy generation resources to meet the needs of its electric customers. ● CEA will support legislation and regulatory actions which promote a neutral, fair, and competitive energy market.
● CEA will oppose legislation and regulatory actions that jeopardize CEA’s independence to self-procure its power resources, determine its rates and the energy programs it provides to its customers in the present, or could restrict its independence to do so in the future.
CEA’s priorities and goals have not changed, and as a result there are no recommended changes to the 2022 Legislative and Regulatory Policy Platform as compared to the 2021 Platform.
FISCAL IMPACT
There is no fiscal impact as a result of this action.
ATTACHMENTS
Attachment – Draft 2022 Legislative and Policy Platform CEA‐10
2022 Legislative and Regulatory Policy Platform
The Clean Energy Alliance (CEA) Board of Directors desires to establish the 2022 Legislative and Regulatory Policy Platform to guide the CEA Board and staff in their advocacy efforts and engagement on policy matters of interest to CEA. The Platform allows both Board Members and staff to pursue actions at the legislative and regulatory levels in a consistent manner and with the understanding that they are pursuing actions in the best interest of CEA and its mission, its member agencies and its customers. The Platform enables the organization to move swiftly to respond to legislative and regulatory events. The Platform also provides guidance to the Chief Executive Officer on the support or oppose positions that should be taken on legislative and regulatory matters that come before the California Community Choice Association (CalCCA) Board of Directors.
Unless otherwise approved by the Board, all CEA positions on individual bills will be presented to the Board for approval. For urgent legislative or regulatory matters where time is of the essence, the Chief Executive Officer, with Board Chair concurrence, will take a position, consistent with the Policy Platform and report the action to the full Board at the next Board meeting.
Policy Principles
CEA supports legislation and regulatory actions that enables, protects and enhances CEA’s priorities and ability to serve its customers as determined by the CEA Board of Directors.
The Legislative and Regulatory Policy Platform is centered around four basic principles:
1. Protecting CEA’s local control for the purpose of preserving the ability to self‐procure power resources, to self‐determine rates and the energy programs offered to residents, businesses, and the communities it serves, through the mechanisms of local governance.
2. Ensuring fair treatment of CEA customers by the California Public Utilities Commission (CPUC) and other state agencies.
3. Supporting recognition that electricity is an essential service, and that CEA should have the ability to set electric rates that are affordable and competitive to the utilities.
4. Pursuing environmental initiatives that exceed minimum State mandates, promote the growth in renewable energy capacity at the local level, encourage clean energy adoption by CEA customers, and reduce fossil fuel dependency.
CEA will support legislation and regulatory actions which enables, protects and enhances the development and expansion of Community Choice Aggregation (CCA) programs, and that Item 5 Attachment A
2022 Legislative and Policy Platform
Updated January 27, 2022
2 supports CCA independence in procurement, program deployment, management and decision making.
CEA will support legislation and regulatory actions which allow CEA to develop and procure local energy generation resources to meet the needs of its electric customers.
CEA will support legislation and regulatory actions which promote a neutral, fair and competitive energy market.
CEA will oppose legislation and regulatory actions that jeopardize CEA’s independence to self‐ procure power resources, determine rates and the energy programs it provides to customers in the present, or could restrict its independence to do so in the future.
The Legislative and Regulatory Policy Platform is to be reviewed and updated every January.
Staff Report
DATE: January 27, 2022
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Chief Executive Officer
ITEM 6: Consider Providing Direction to Amend Clean Energy Alliance’s Joint Powers Agreement Regarding Chair and Vice Chair Term Limits
RECOMMENDATION
Provide direction related to amending Clean Energy Alliance’s Joint Powers Agreement regarding Chair and Vice Chair term limits.
BACKGROUND AND DISCUSSION
At its regular Board meeting on December 30, 2021, the CEA Board requested that an item be placed on the agenda for the Board to discuss establishing term limits for the positions of Chair and Vice Chair.
Section 5.2 of the CEA Joint Powers Agreement (JPA) states that the Board shall elect a Chair and Vice Chair to serve for a calendar year, and that the term of office shall be for one year with no limit on the number of terms held by either the Chair or Vice Chair.
FISCAL IMPACT
There is no fiscal impact associated with this item.
ATTACHMENTS
None
Staff Report
DATE: January 27, 2022
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Chief Executive Officer
ITEM 7: Discuss and Provide Direction Related to In Person Clean Energy Alliance Board Meeting Location
RECOMMENDATION
Discuss and provide direction related to in person Clean Energy Alliance Board meeting location.
BACKGROUND AND DISCUSSION
Section 4.8 of the Clean Energy Alliance’s (CEA) Joint Powers Agreement (JPA) states that the date, hour, and place of each regular meeting shall be fixed annually by resolution of the Board, and that the location of regular meetings may rotate for the convenience of the member agencies, subject to Board approval and availability of appropriate meeting space.
At its regular meeting May 27, 2021, the Board adopted Resolution No. 2021-010 setting the time and place for meetings to be held July 2021 through June 2022. While the resolution identified a location for the meetings, during the current state of emergency created by the COVID-19 pandemic, CEA’s Board meetings have been held remote pursuant to AB361. The authorization for holding meetings remote are set to expire March 31, 2022.
Pursuant to Resolution No. 2021-010, the meeting schedule for meetings after March 2022 are as follows:
DATE TIME LOCATION
April 28, 2022 2pm Carlsbad City Hall
May 26, 2022 2pm Del Mar City Hall
June 30, 2022 2pm Solana Beach City Hall
Questions for Board consideration:
● Does the Board desire to hold the April – June 2022 pursuant to the adopted schedule or make changes to the schedule?
o Should the Board desire to change the location for any meetings already scheduled through the remainder of this fiscal year, it would result in the scheduled regular January 27, 2022
In Person Meeting Location
meeting being canceled and the updated meeting would be considered a special meeting.
● What is the Board’s preference regarding meeting schedule and location for the coming period July 1, 2022 – June 30, 2023?
Based on input provided by the Board, staff will initiate conversations with staff of the potential meeting locations to determine ability for CEA to hold meetings at the location and make necessary preparations to meet CEA’s customer participation/viewing requirements. Staff will report back on their findings by the March 31, 2022, meeting.
FISCAL IMPACT
There is no fiscal impact as a result of this action.
ATTACHMENTS
None
Staff Report
DATE: January 27, 2022
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Chief Executive Officer
ITEM 8: Declare Openings and Direct Application Process for Clean Energy Alliance Community Advisory Committee for the Cities of Escondido and San Marcos
RECOMMENDATION
Declare openings and direct application process for Clean Energy Alliance Community Advisory Committee for the cities of Escondido and San Marcos.
BACKGROUND AND DISCUSSION
Clean Energy Alliance’s (CEA) Community Advisory Committee (CAC) Policy (Attached) establishes that the CAC shall consist of two (2) appointees from each CEA member agency as well as one (1) CEA Board Alternate to serve as CAC Chair, to serve three (3) year staggered terms. In the inaugural year, one of the two appointees from each member agency shall serve for two (2) years. With the additions of Escondido and San Marcos, the CEA Board should declare the openings and direct that the application process begins related to the two positions needed for each new city.
CAC members shall be residents (property owners or renters) or business owners within the service territory for the city which the CAC member is representing and are subject to all applicable conflict of interest laws and may be required to disclose potential conflicts by filing a Form 700. The CAC Policy further states that CAC members will be considered that have a relevant background in, or expertise related to, one of the following fields: electricity, community outreach or engagement, or policy advocacy.
CAC appointees must be committed to serving on the CAC and attending regular CAC meetings and occasional CEA Board meetings. CAC members are expected to maintain a good attendance record and will be removed from the CAC after two consecutive unexcused absences from CAC meetings or have unexcused absence for more than 25% of the CAC meetings in a calendar year.
The CAC is subject to the Brown Act and all meetings are publicly noticed and held in public settings pursuant to requirements of the Brown Act.
CEA will advertise the openings on its social media, post a notice along with the application on its website, and will work with staff of the cities of Escondido and San Marcos to get the word out regarding the vacancies. Applications will be accepted through February 25, 2022 and will be provided January 27, 2022
CAC Member Vacancies
to the appropriate Board Members the week of February 28. The Board Member will nominate two applications from their respective pool of applicants for full CEA Board approval at the March 31, 2022, CEA Board meeting.
FISCAL IMPACT
There is no fiscal impact as a result of this action.
ATTACHMENTS
Community Advisory Committee Policy
City of Carlsbad | City of Del Mar | City of Solana Beach | City of Escondido | City of San Marcos
COMMUNITY ADVISORY COMMITTEE
PURPOSE AND SCOPE
Community Advisory Committee (CAC) Authorization
Section 5.9 of the Clean Energy Alliance (CEA) Joint Powers Authority (JPA) Agreement provides the authority for the CEA Board to establish an advisory committee to assist the Board in implementing and operating its CCA program. Pursuant to the JPA Agreement, the committee should have equal representation from the member agencies. The Board may establish criteria to qualify for appointment to the committee, and establish rules, regulations, policies or procedures to govern the committee.
CAC Membership Criteria
• The CAC membership shall consist of two (2) appointees from each CEA member agency and 1 Board Alternate. CAC committee members shall serve staggered three (3) year terms with a two-term limit. In the inaugural year, one appointee seat from each member agency shall serve two (2) years.
• Board Alternate will serve as CAC Chair and provide regular reports to the CEA Board. • Committee members serve at the pleasure of the Board. • CAC members will be subject to all applicable conflict of interest laws and may be required to disclose potential conflicts by filing a Form 700. (Information about conflicts of interest and Form 700 can be found here: http://www.fppc.ca.gov/Form700.html. • Members shall be residents (property owners or renters) or business owners within the service territory of CEA.
• CAC membership will be considered for those that have a relevant background in or expertise related to one or more of the following fields: electricity, community outreach or engagement, or policy advocacy.
• Applicants must be committed to serving on the CAC and attending regular committee meetings, and occasional CEA Board meetings. Committee meetings will be held quarterly unless additional meetings are directed by the Board. Members are expected to maintain a good attendance record. A committee member will be removed from the Item 8 Attachment
Clean Energy Alliance CAC
Approved July 16, 2020
2 CAC if the member has two consecutive unexcused absences from CAC meetings or has unexcused absences from more than 25% of the CAC meetings in a calendar year. • The CAC is subject to Brown Act and all meetings will be publicly noticed and held in public settings pursuant to requirements of the Brown Act. • CAC meetings, times and location will be determined by the CEA Board.
CAC Purpose & Objectives
The purpose of the CAC is to advise the CEA Board of Directors on those matters concerning the operation of its Community Choice Aggregation (CCA) program as directed by the Board of Directors in an annual workplan for the CAC that is adopted by the Board. The objectives of the CAC are to provide feedback to the Board, act as a liaison between the Board and the community and serve as a forum for community input on those matters assigned to the CAC in the annual workplan. The CAC shall not have any decision-making authority but will serve as an advisory body to the Board of Directors.
CAC Member Selection Process
Applicants must complete and submit the Clean Energy Alliance Community Advisory Committee Application (Attachment A). Board Members will nominate two applicants from their respective communities to the full Board for approval. In addition, the full Board will select one Board Alternate to participate on the CAC.
Clean Energy Alliance CAC
Approved July 16, 2020
3 Attachment A
Clean Energy Alliance
Community Advisory Committee Application
CAC Purpose & Objectives
The purpose of the CAC is to advise the CEA Board of Directors on those matters concerning the operation of its Community Choice Aggregation (CCA) program as directed by the Board of Directors in an annual workplan for the CAC that is adopted by the Board The objectives of the CAC are to provide feedback to the Board, act as a liaison between the Board and the community and serve as a forum for community input on those matters assigned to the CAC in the annual workplan. The CAC shall not have any decision-making authority but will serve as an advisory body to the Board of Directors.
NAME: ______________________________________________________________________ ADDRESS: ____________________________________________________________________ PHONE: ___________________________ EMAIL:_____________________________________ Are you a resident/business owner of one of the CEA member cities? If yes, which city: ___________________________________ Please attach a current resume and respond to the following questions. Please attach a separate sheet if additional space is needed.
What experience/perspective will you bring to the committee? Clean Energy Alliance CAC
Approved July 16, 2020
4 Describe any relevant background in or expertise related to one or more of the following fields:
electricity, community outreach or engagement, or policy advocacy.
Do you have any interests or associations that might present a conflict of interest? If yes, please explain:
What do you hope to accomplish as a member of the Clean Energy Alliance Community Advisory Committee?
Please provide three references
NAME Phone Number Relationship
Clean Energy Alliance CAC
Approved July 16, 2020
5 By signing below I acknowledge that I have sufficient time to actively participate in the Clean Energy Alliance Community Advisory Committee for the benefit of the program and the communities it serves. I understand that committee members are subject to conflict of interest laws and required to disclose potential conflicts by filing Form 700.
Signature: _________________________________________________ Date: _____________________________________________________ Completed applications should be emailed to: [email protected] Staff Report
DATE: January 27, 2022
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Chief Executive Officer
ITEM 9: Consider Approval of Community Advisory Committee 2022 Workplan and Meeting Schedule
RECOMMENDATION
Consider approval of Community Advisory Committee 2022 Workplan and meeting schedule.
BACKGROUND AND DISCUSSION
Pursuant to the Clean Energy Alliance (CEA) Community Advisory Committee (CAC) Policy, the CEA Board sets the CAC workplan and meeting schedule annually. For 2021, the Board approved the following CAC workplan and schedule:
MEETING DATE WORK PLAN/TOPICS
December 2020 Overview of Brown Act Requirements and Conflicts of Interest Form 700 Community Choice Aggregation Overview
CEA Implementation & Goals
March 2021 Community Outreach Plan to support CEA Implementation June 2021 CEA FY 21/22 Budget Overview & Goals
September 2021 Overview& Discussion of Member Agency Climate Action Plans & Goals December 2021 Overview of Programs offered by CCAs throughout the State At its December 2, 2021, meeting, the CAC reviewed the past year workplan and schedule and discussed potential changes and has requested the Board to consider bimonthly meeting schedule and the following topics for the CAC to address:
• Marketing and Outreach strategy in support of the Escondido and San Marcos service launch
• Review and input to CEA’s draft 2022/23 budget and goals • Input into updating CEA’s website to address topics that support achievement of member agencies Climate Action Plans
• Initial program identification in the following priority areas:
o Expansion of electric vehicles and electric vehicle charging infrastructure o Community Solar program
January 27, 2022
In Person Meeting Location
o Establishment of relationship with University of San Diego Center for Energy Research for possible partnership opportunities
o Education, outreach, and training related to initiatives in support of reduction of greenhouse gas emissions
In developing the proposed workplan the CAC considered CEA’s JPA goals, climate action plans of the member agencies and programs being offered by CCAs throughout the state. The CAC also considered where CEA is in its life cycle and identified those activities that would take little to no direct funding from CEA.
Based on the CAC recommendation, staff has drafted the following proposed CAC workplan and schedule:
MEETING DATE WORK PLAN/TOPICS
February 3, 2022 Review CEA Website & Provide input for Update April 7, 2022 Receive report from CEA Board Budget Workshop June 2, 2022 Review CEA Draft FY 2022/23 Budget
August 4, 2022 Marketing and Outreach Strategy for Escondido & San Marcos Launch October 6, 2022 Education, Outreach and Training Plan re: GHG Emissions Reductions Strategies
December 1, 2022 2022 Achievements and 2023 Workplan Suggestions for Board Consideration
FISCAL IMPACT
The cost of administering each CAC meeting is approximately $1,250, the estimated cost of increasing from four meetings to six meetings per year is $2,500.
ATTACHMENTS
None
Staff Report
DATE: January 27, 2022
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Chief Executive Officer
ITEM 10: Receive Update and Provide Direction Regarding Clean Energy Alliance 100% Renewable Green Impact Marketing Program
RECOMMENDATION
1) Approve Green Impact marketing program name: Green Impact Champions. 2) Select Green Impact Champions logo.
3) Approve Business and Residential Green Impact Champions programs.
BACKGROUND AND DISCUSSION
CEA offers three power supply products:
● Clean Impact – minimum 50% Renewable Energy
● Clean Impact Plus – 75% Carbon Free Energy - $.001 per kWh premium (average $.35 per month)
● Green Impact – 100% Renewable Energy - $.0075 per kWh premium (average $2.65 per month) Each of our three current operational member cities have selected Clean Impact Plus as the default power supply for their communities. Our newest members, Escondido, and San Marcos will be selecting their default power supply products in September 2022 as part of planning for their April 2023 launch.
Individual customers may voluntarily opt up to Green Impact or opt down to Clean Impact Plus.
Through December 31, 2021, CEA customers have made the following elections:
● Clean Impact Opt Downs
o 115
▪ Residential – 110
▪ Non-Residential - 5
● Green Impact Opt Ups
o 365
▪ City of Del Mar Municipal Accounts – 39
▪ City of Solana Beach Municipal Accounts – 40
▪ Residential – 266
▪ Non-Residential – 20
● Includes Encina Wastewater Authority and Leucadia County Water District accounts
January 27, 2022
Green Impact Program
At its regular meeting September 30, 2021, the Clean Energy Alliance (CEA) Board requested staff research development of a program encouraging customers to opt up to CEA’s 100% renewable power supply, Green Impact.
Based on Board direction, staff researched 100% renewable energy opt-up marketing campaigns offered by other Community Choice Energy (CCE or CCA) programs in the state to get an idea of cost and effectiveness. A survey on this same topic was also posted by another CCE agency to the Marketing and Communications group of California Community Choice Association (CalCCA) the professional association for CCE programs. There was not much response to the survey, however those that did respond indicated that the programs tend to not generate a large increase in customer opt ups. Below is information taken from one of the survey results which includes some good resources:
“…opt up campaigns are expensive per enrollment and tend to bear relatively little fruit. That's not an argument against opt up campaigns: they raise awareness, increase participation in green power programs, get customers engaged, remind customers of their choices, help with your brand, etc. But they are in no way a substitution for a change in default service level. Most opt-up efforts will result in single-digit percentage enrollments at best, whereas a change in default service will result in ~90% (100%- opt outs) of targeted customer enrollments.
National Renewable Energy Lab (NREL) tracks these utility green pricing options and their success, through an annual data survey:
https://www.nrel.gov/analysis/assets/pdfs/green-pricing-top-10-2020-data-plus-archives.pdf You can see that even after decades of marketing and outreach effort, the top ten programs nationally have opt-up rates of 5-26%. And the top ten tend to be utilities that have very low green premiums and spend $$$ on opt up campaigns on a sustained level for multi-year periods of time.
NREL provides an annual summary of market activity here:
https://www.nrel.gov/docs/fy21osti/77915.pdf”
Marin Clean Energy (MCE) the first community choice energy program, which started serving customers in 2010, has offered a variety of marketing and community programs to encourage enrollment in their 100% renewable energy product, Deep Green. Their efforts have resulted in limited success, summarized in the attachment.
Based on the information gathered regarding effectiveness of opt-up campaigns and CEA’s limited funds available for a significant program, staff recommends the Board consider a program that recognizes business customers that are enrolled in CEA’s Green Impact program along with a small incentive program for residential customers that have opted up.
Green Impact Program Concept
Staff and its marketing team from Tripepi Smith brainstormed to come up with ideas for a program that recognizes customers for making the choice to enroll in CEA’s Green Impact product and from that process the idea for the program name Green Impact Champions was born. These customers are carrying the torch in accelerating CEA’s goals to achieve 100% renewable for all customers by 2035.
January 27, 2022
Green Impact Program
Staff proposes a marketing program that has minimal cost and provides value to the residents and businesses enrolled.
LOGO OPTIONS
With that program brand concept two logo options were developed for Board consideration:
Option A:
Option B:
Staff is seeking Board input on the preferred logo option.
January 27, 2022
Green Impact Program
General Program Marketing & Outreach
● Market Green Impact Champions program, benefits, and enrollment options through social media outlets;
● Highlight a Green Impact Champion in a monthly social media post; ● Send a letter to customers previously enrolled in San Diego Gas & Electric’s 100% renewable program that are not enrolled in Green Impact that provides information regarding CEA’s 100% renewable product and how to enroll.
Business Recognition
To recognize business customers who have enrolled in CEA’s Green Impact the following is proposed for Board consideration:
● Develop window clings from the logo selected for customers to use at its place of business; ● Create a Green Impact Champions webpage that lists enrolled businesses (with approval from the business);
● Research feasibility of a policy that enables business customers to use the Green Impact Champion logo on its website and marketing materials.
Residential Customer Program
● Hold a monthly drawing for one residential customer to receive monthly bill credit for premium cost of Green Impact product
FISCAL IMPACT
Estimated cost of program is $3,000 including window clings, webpage creation, and residential customer bill credit.
ATTACHMENTS
Summary of Marin Clean Energy (MCE) Deep Green Marketing and Community Campaigns
SUMMARY OF MARIN CLEAN ENERGY (MCE) OPT UP PROGRAMS
MCE has done a number of Deep Green opt up campaigns. Here's a quick snapshot:
Community Campaigns
● Fairfax Gift of Green Campaign (2015-2016):
○ Including a BAAQMD grant for $6,000 to cover the cost of going Deep Green for 100 customers for a year.
○ Run time: Approximately 2 years
○ Enrollment: 100 customers
○ Cost: Around $10k, fair amount of staff time
○ Tactics: present at community events, partnership with Fairfax Climate Action Committee to attend events, dedicated webpage, banner placed prominently in the community.
● El Cerrito 100 for 100 Campaign (2017):
○ Partnership with the El Cerrito Environmental Quality Committee and the City of El Cerrito for their 100th anniversary.
○ Run time: 1 year
○ Enrollment: 50-100 customers
○ Cost: lower cost (marketing materials only) and extensive staff time ○ Tactics: present at community events, partnership with El Cerrito Environmental Quality Committee to attend events, dedicated webpage, advertising placed in the community.
● Lafayette Give a Gift of Green Campaign (2018):
○ Partnership with Sustainable Lafayette and the City for the City's 50th birthday. ○ Run time: Approximately 10 months
○ Enrollment: 150 customers
○ Cost: Around $5k, extensive staff time including a high number of evening and weekend events.
○ Tactics: present at community events, partnership with Sustainable Lafayette to attend events, dedicated webpage, advertising placed in the community. ● Living Lightly Campaign (2019):
○ Competition based campaign, focused on spiritual organizations, to opt up as many folks as possible and beat the leader board.
○ Run time: 1 year
○ Enrollment: 100 customers
○ Cost: Less than $1k, fair amount of staff time
○ Tactics: present at community events, dedicated webpage. ● 20k by 2020 Deep Green Campaign (2020):
○ Focus on member communities, small businesses, EV customers, and solar customers.
○ Run time: 1 year
○ Enrollment: ~1,000 customers
Item 10 Attachment
○ Cost: $10k, largest amount of staff time
○ Tactics: direct engagement with member communities and small businesses, direct email to EV and solar customers, call to action for local community groups to work within their networks to opt up customers.
Marketing Campaigns
● Earth Day Campaign 2016: Direct mail campaign.
● #OptUP Campaign 2017: OOO advertising, social media, print media, community advocacy.
Of MCE’s 540,000 accounts, just over 12,000 (2%) are Deep Green. That's an average of 1,000 accounts opting up each year of service.