Clean Energy Alliance - Board of Directors
Regular Meeting Minutes
July 28, 2022, 2:00 p.m.
City of San Marcos|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: Walton, Acosta, Inscoe, Vice Chair Druker, Chair Becker
FLAG SALUTE: Board Member Walton led the flag salute.
BOARD COMMENTS & ANNOUNCEMENTS: None
PRESENTATIONS
San Diego Gas & Electric Update on Summer Preparedness – Katelyn Hailey, Regional Public Affairs Manager, Sara Nordin, Customer Choice Strategy & Policy Manager and Shaun Gahagan, Wildfire Mitigation Program Manager
PUBLIC COMMENT: None
APPROVAL OF MINUTES
June 23, 2022, Special Meeting – Closed Session
June 23, 2022, Special Meeting
June 30, 2022, Regular Meeting
Motion by Vice Chair Druker, second by Member Inscoe, to approve the minutes of the special meetings held June 23, 2022, and the regular meeting held June 30, 2022.
Motion carried 4/0, with Board Member Walton abstaining.
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.
DocuSign Envelope ID: 192B0F0F-16A2-472F-A47F-FBD81149DBF1 Item 2: Clean Energy Alliance Treasurer’s Report
RECOMMENDATION
Receive and file Clean Energy Alliance Treasurer’s Report for May 2022 activity.
Motion by Vice Chair Druker, second by Board Member Inscoe, to approve the consent calendar.
Motion carried unanimously 5/0.
New Business
Item 3: Clean Energy Alliance Chief Executive Officer Operational, Administrative and Regulatory Affairs Update
RECOMMENDATION
Receive and file Community Choice Aggregation Update Report from Chief Executive Officer and Regulatory Affairs Report from Special Counsel Tosdal APC.
CEO Barbara Boswell updated the Board highlighting the SDG&E rate adjustment effective June 1, 2022, decreasing approximately 4% and commented that CEA along with San Diego Community Power filed a protest with the CPUC noting that the rates were based on outdated assumptions and not reflective of current market conditions causing SDG&E to under collect revenue. CPUC set aside the Advice Letter and may still take action related to the protest. CEA rates set in January 2022, adjusted in February meeting CEA’s goal of 2% generation cost savings, are reflective of current market conditions and provide sufficient revenue to cover operational costs. Ms. Boswell shared rate comparison charts and the benefits of being a CEA customer including reducing greenhouse gas emissions, meeting the Climate Action Plan goals of the member cities, cost effectiveness, and local control for the benefit of the community.
Vice Chair Druker inquired regarding verbiage on the joint mailers as to explanation of rate differential or simply comparison charts. Ms. Boswell indicated that the chart includes the power supply sources for both SDG&E and CEA but the ability to editorialize is not permitted. Marketing and outreach regarding the rates is underway providing information regarding the temporary situation and CEA’s role in setting rates that provide savings for customers. Board Member Walton commented that the rate swing is effectively the same as SDG&E and inquired as to response when this occurs, and Ms. Boswell stated that previous experience did not show significant opt outs or concern. Board Member Inscoe noted that the call center will be able to provide explanation of the temporary rate differential.
CEO Boswell commented on CEA expansion into the cities of Escondido and San Marcos with an April 2023 launch scheduled and reviewed the timeline, and commented on the status of Oceanside, Vista, and San Clemente joining CEA noting that San Clemente has tabled the decision. Chair Becker and Board Member Acosta extended gratitude to CEO Boswell for all her work and continued work with the cities and joining CEA.
Lastly, Ms. Boswell commented regarding the Community Advisory Committee (CAC) vacancies for the cities of Solana Beach and Del Mar and that applications will be accepted DocuSign Envelope ID: 192B0F0F-16A2-472F-A47F-FBD81149DBF1 through July 31, 2022. Information and application is available at www.thecleanenergyalliance.org.
Regulatory Counsel Ty Tosdal updated the Board on the following items: SDG&E rate decrease (Advice Letter 4004-E), commenting that SDG&E submitted a consolidated advice letter seeking to implement multiple decision regarding modifications to revenue requirements, updates to Critical Peak Pricing, refund excess Department of DRW Bond charges, and implementing a revised sales forecast. The protest filed by CEA and SDCP noted that the sales forecast numbers are outdated, the advice letter designated Tier 1 (lowest scrutiny) should be Tier 2, and adoption of the advice letter would lead to undercollection by SDG&E. A notice has been submitted by SDG&E stating rates are indeed being undercollected for their main generation cost account and SDG&E submitted a request for 2024 rate increase of 3.2 – 3.6% a context of rising rate environment. Since that time, the Legislature has directed the State Auditor to conduct an audit of SDG&E rate increases previously approved by the CPUC. This audit is expected to take approximately 7 months or more. Lastly, AB 205 passed and was approved by Governor on June 30. This bill creates reliability programs and a strategic reliability reserve fund that will be supported by the state, not rates, and authorizes the Electricity Supply Strategic Reserve Program, permitting the Department of Water Resources (DWR) to implement projects to carry out the purposes of the Strategic Reliability Reserve. Updates will be forthcoming.
CEA Board received and filed report.
Item 4: Consider Resolution Authorizing the Cities of Oceanside and Vista to Become Parties to the Clean Energy Alliance Joint Powers Agreement and Members of the Clean Energy Alliance and Related Actions
RECOMMENDATION
1) Approve Resolution 2022-004 authorizing the Cities of Oceanside and Vista to become parties to the Joint Powers Agreement and members of Clean Energy Alliance; 2) Schedule approval of the Amendment of the Joint Powers Agreement for August 25, 2022;
3) Direct staff to prepare an Implementation Plan Amendment, reflecting the expansion into Oceanside and Vista, and return to the October 27, 2022, Board meeting for approval.
CEO Barbara Boswell provided the presentation and introduced Aiden Walden and Kirby Dusel of Pacific Energy Advisors to be available for questions. Ms. Boswell highlighted the requirements of the JPA for the addition of members, actions of both cities to join CEA, and reviewed the Financial Assessments of both cities noting a slight deficit in 2025 and surplus in 2026 and commented on next steps.
Vice Chair Druker inquired regarding the 2025 deficit and if the addition of the remaining cities to the financial equation would it erase the deficit. Ms. Boswell explained that it is possible and that prior to joining CEA each city’s financial assessment is viewed independently but after joining CEA it’s a combined view.
Motion by Vice Chair Druker, second by Board Member Walton, to approve the recommended action.
Motion carried unanimously, 5/0.
DocuSign Envelope ID: 192B0F0F-16A2-472F-A47F-FBD81149DBF1 BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS: None
ADJOURN: Chair Becker adjourned the meeting at 3:11 p.m. _______________________________________
Susan Caputo, MMC
Interim Board Secretary
DocuSign Envelope ID: 192B0F0F-16A2-472F-A47F-FBD81149DBF1