Clean Energy Alliance - Board of Directors
Regular Meeting Minutes
May 26, 2022, 2:00 p.m.
City of Del Mar|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 2:00 p.m.
ROLL CALL: Board Members: Musgrove, Acosta, Inscoe, Vice Chair Druker, Chair Becker FLAG SALUTE: Board Member Musgrove led the flag salute.
BOARD COMMENTS & ANNOUNCEMENTS: Vice Chair Druker commented regarding the receipt of four responses to General Counsel RFP.
PRESENTATIONS: None
PUBLIC COMMENT: None
APPROVAL OF MINUTES
March 31, 2022, Regular Meeting
April 21, 2022, Special Meeting
Motion by Member Musgrove, second by Member Acosta, to approve the minutes of the regular meeting held March 31, 2022, and the special meeting held April 21, 2022.
Motion carried unanimously, 5/0.
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
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 2: Clean Energy Alliance Treasurer’s Report
RECOMMENDATION
Receive and file Clean Energy Alliance Treasurer’s Report for February and March 2022 activity.
DocuSign Envelope ID: 619EBB33-5BA9-4F35-A491-9AABB8F93771 Item 3: Consider Resolution No. 2022-002 Setting Time and Place for Clean Energy Alliance Board Meetings July 2022 – June 2023
RECOMMENDATION
Adopt Resolution No. 2022-002 Setting Time and Place for Clean Energy Alliance Board Meetings July 2022 – June 2023.
Item 4: Approve Extension of Bayshore Consulting Group, Inc. Agreement through June 30, 2023, for Chief Executive Officer and Interim Board Clerk Services
RECOMMENDATION
Approve extension of Bayshore Consulting Group, Inc. Agreement through June 30, 2023, for Chief Executive Officer and Interim Board Clerk Services for a total not to exceed amount $200,000 and a one-time Bonus of $10,000; and authorize the Board Chair to execute the agreement, subject to General Counsel approval.
Item 5: Approve Extensions of Professional Services Agreements for Fiscal Year 2022/23
RECOMMENDATION
Approve extensions of professional services agreements for Fiscal Year 2022/23 and authorize the Chief Executive Officer to execute the agreements, subject to General Counsel approval, for the following not to exceed amounts and terms:
Scope of Work Consultant Not to
Exceed
Term
Special Counsel – Regulatory Tosdal APC $120,000 6/30/2023 Special Counsel – Energy
Transactions
Hall Energy Law $50,000 6/30/2023
Special Counsel – CPUC
Proceedings
Keyes & Fox $50,000 6/30/2023
Interim Treasurer/CFO Marie Marron
Berkuti
$10,000 8/31/2022
Marketing & Communications Tripepi Smith $150,000 6/30/23
Item 6: Consider Approval of Letter Regarding AB 2838 Taking Position of Oppose Unless Amended Related to Program Closure Costs of San Diego Gas & Electric’s Green Tariff Shared Renewables (TSR) Known as EcoChoice
RECOMMENDATION
Approve Letter Regarding AB 2838 taking position of oppose unless amended related to program closure costs of San Diego Gas & Electric Green Tariff Shared Renewables (GTSR) program, known as EcoChoice.
DocuSign Envelope ID: 619EBB33-5BA9-4F35-A491-9AABB8F93771 Item 7: Consider Scheduling Special Meeting for June 23, 2022, for Purpose of 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
Schedule Special Clean Energy Alliance Board Meeting on June 23, 2022, for purpose of 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).
Motion by Member Inscoe, second by Member Musgrove, to approve the consent calendar Motion carried unanimously, 5/0.
New Business
Item 8: 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.
CEO Barbara Boswell updated the Board the with highlights from the CEO report including CEA Expansion into the cities of Escondido and San Marcos scheduled to launch in April 2023, commenting that the Implementation Plan Amendment Certified by the CPUC was received; that the CEA Year Ahead Resource Adequacy (RA) forecast was filed with the CPUC; and that CEA has entered into an Energy Hedge contract; and commented on the next steps. In addition, an update was provided on CEA Expansion into the cites of Oceanside, Vista, and San Clemente, indicating the results of the analysis assessments have been reported back to the cities and that in June the cities will consider a resolution to join CEA and an ordinance establishing a CCA. CEO Boswell reported on the RFQ for General Counsel Services commenting that four proposals were received, and that Subcommittee interviews are scheduled for May 31 with Board interviews and selection scheduled for June.
Chair Becker extended kudos to CEO Boswell regarding the Vista Workshop commenting that the questions were thoughtful and comprehensive, and CEO Boswell answered thoroughly and eloquently.
Regulatory Attorney Tosdal provided updates on the following regulatory items: Net Energy Metering (NEM) commenting that the CPUC has issued a new ruling seeking additional input on the Proposed Decision in three areas: transitional rates, applicability of non-bypassable charges, and adoption of a community solar tariff. Mr. Tosdal commented regarding the problems with the Decision that include a change in grandfathering rules to substantially reduce legacy periods and the grid participation charge for residential customers set at $8/kW, the adoption of the Market Transition Credit (MTC) to ensure DocuSign Envelope ID: 619EBB33-5BA9-4F35-A491-9AABB8F93771 growth of distributed resources and that NEM customers must enroll in a single TOU rate schedule per utility; commented regarding the Decision on Modified Cost Allocation Mechanism indicating that the CPUC approved a decision ordering utilities to contract with new CCA programs, including CEA, for Resource Adequacy (RA) for share of resources at the Market Price Benchmark which puts CEA in a stronger position to meet compliance requirements; and commented regarding Assembly Bill 2838 that would permit SDG&E to obtain recovery of excess costs related to its EcoChoice program from non-participating ratepayers, including CCA customers. The Bill passed the Assembly and is now referred to the Senate Energy, Utilities and Communication Committee.
Vice Chair Druker inquired if Senator Atkins might be able to assist with opposition. Board Member Acosta commented regarding her willingness to advocate for positions as needed.
CEA Board received and filed the report.
Item 9: Review Proposed Fiscal Year 2022/23 Budget and Schedule Adoption for June 30, 2022, Regular Board Meeting.
RECOMMENDATION
Review proposed Fiscal Year 2022/23 Budget and schedule adoption for June 30, 2022, regular board meeting.
CEO Barbara Boswell presented the item reviewing the process and year end estimates, proposed budget assumptions, and priorities and goals. Ms. Boswell indicated an increase in revenue due to Escondido and San Marcos Expansion and an increase in expenditure due to energy purchases to serve Escondido, San Marcos and proposed positions and commented that the budget will be presented for adoption at the June 30, 2022, CEA Board meeting.
Board Member Musgrove commented regarding the possibility of considering a CEA physical location; Board Member Inscoe commented regarding the Board Secretary position and echoed Member Musgrove’s comments for consideration of CEA physical location, and inquired regarding the Account Services Program Manager and Procurement Manager positions and funding opportunities; Vice Chair Druker commented regarding a future CEA office, and Member Acosta commented regarding the lean approach and fiscal responsibility of CEA.
CEO Boswell expressed gratitude to founding member cities, the City of Carlsbad City Clerks Office, and Interim Treasurer Marie Berkuti for all the work contributing to the success of CEA.
CEA Board received and filed the report.
Item 10: Receive Update and Assessment Report Related to the cities of Oceanside, San Clemente, and Vista Joining Clean Energy Alliance
DocuSign Envelope ID: 619EBB33-5BA9-4F35-A491-9AABB8F93771
RECOMMENDATION
Receive update and assessment report related to the cities of Oceanside, San Clemente, and Vista joining Clean Energy Alliance.
CEO Barbara Boswell updated the CEA Board regarding the assessment report related to the cities of Oceanside, San Clemente, and Vista joining CEA. Commenting on the process used for the analysis and indicated that due to power supply cost rates would need to be increased 2.5% to achieve a minimum 5% reserve contribution each year 2024-2026. Bill Comparison rates indicate savings compared to SDG&E for all three cities. Procurement considerations include Resource Adequacy (RA) and Long-Term Renewable Energy which puts CEA at risk of non-compliance to CEA if unable to reach agreement with SDG&E and risk of non-compliance to CEA if unable to reach agreement with SDG&E regarding long-term renewable energy supply related to the departures of the new members. Ms. Boswell reviewed the next steps and activity timing through December 2022 and question of best launch date.
Vice Chair Druker commented regarding the possible postponement of implementation and associated ramifications. Member Musgrove inquired regarding subjectivity of CEA to Brown Outs and other energy issues. CEO Boswell responded that all load serving entities such as CEA and SDG&E are subject to the same supply constraints on the grid.
CEA Board received and filed the report.
Item 11: Authorize Board Chair and Chief Executive Officer to Execute Agreement with Pattern SC Holdings for Resource Adequacy, for a Fifteen (15) Year Term Beginning June 2023 for an amount not to exceed $6.5MM in compliance with California Public Utilities Commission Mid-Term Reliability Procurement Mandate.
RECOMMENDATION
Authorize Board Chair and Chief Executive Officer to Execute Agreement with Pattern SC Holdings for Resource Adequacy, for a Fifteen (15) Year Term Beginning June 2023 for an amount not to exceed $6.5MM in compliance with California Public Utilities Commission Mid-Term Reliability Procurement Mandate.
CEO Barbara Boswell presented the item commenting that all load serving entities need to procure additional resources to address reliability issues and that this project addresses this issue and that the project is a wind project.
Motion by Vice Chair Druker, second by Chair Becker, to approve the recommended action.
Motion carried unanimously, 5/0.
BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS: None
ADJOURN: Chair Becker adjourned the meeting at 3:18 p.m. _______________________________________
Susan Caputo, MMC
Interim Board Clerk
DocuSign Envelope ID: 619EBB33-5BA9-4F35-A491-9AABB8F93771