Clean Energy Alliance - Board of Directors
Regular Meeting Minutes
October 26, 2023, 2:00 p.m.
City of Oceanside, Council Chamber
300North Coast Hwy,Oceanside CA 92054
CALL TO ORDER: Chair Druker called to order the regular meeting of the Clean Energy Alliance at 2:00 p.m.
ROLL CALL: Board Members: Becker, Melendez, Bhat-Patel, Garcia, Vice Chair Musgrove, Chair Druker
FLAG SALUTE: Member Becker led the flag salute.
BOARD COMMENTS & ANNOUNCEMENTS: None
PUBLIC COMMENT: None
APPROVAL OF MINUTES
July 27, 2023, Special and Regular Meetings
August 31, 2023, Special Meeting
September 28, 2023, Special and Regular Meetings
Motion by Becker, second by Bhat-Patel, to approve the minutes of the CEA Board July 27, 2023, August 31, 2023, and September 28, 2023, meetings, respectively.
Motion carried unanimously, 6/0.
Consent Calendar
Item 1: Clean Energy Alliance Treasurer’s Report for August 2023
RECOMMENDATION
Receive and file Clean Energy Alliance Treasurer’s Report for August 2023.
Item 2: Receive Clean Energy Alliance Chief Executive Officer Operational Report and Special Counsel Regulatory Report
RECOMMENDATION
Receive Clean Energy Alliance Chief Executive Officer Operational Report and Special Counsel Regulatory Report.
Item 3: Receive Clean Energy Alliance Community Advisory Committee October 5, 2023, Meeting Report
RECOMMENDATION
Receive Clean Energy Alliance Community Advisory Committee October 5, 2023, Meeting Report.
Item 4: Consider Approval of Resolution No. 2023-010 Approving the Form of and Authorizing the Execution of a Memorandum of Understanding and Authorizing Participation in the Special District Risk Management Authority’s Health Benefits Program DocuSign Envelope ID: 770BE0D5-61BE-45A6-B1EA-91632B7D9988
RECOMMENDATION
Approve Resolution No. 2023-010 approving the form of and authorizing the execution of a Memorandum of Understanding and authorizing participation in the Special District Risk Management Authority’s Health Benefits Program.
Item 5: Consider Approval of 11-Year Power Purchase Agreements with Edwards Solar 1A Group 2 Opco, LLC and Edwards Solar 1A Group 3 Opco, LLC for Resource Adequacy in Satisfaction of a Portion of Clean Energy Alliance’s Mid-Term Reliability Requirements
RECOMMENDATION
Approve 11-Year Power Purchase Agreements for Resource Adequacy with Edwards Solar 1A Group 2 Opco, LLC in an amount not to exceed $12,455,520 and Edwards Solar 1A Group 3 Opco, LLC in an amount not to exceed $1,848,000 in satisfaction of a portion of Clean Energy Alliance’s Mid-Term Reliability Requirements. Authorize the Chief Executive Officer to execute all documents, substantially as to form of attached, subject to Transactions Attorney approval.
Motion by Melendez, second by Bhat-Patel, to approve the consent calendar.
Motion carried unanimously, 6/0.
Public Hearing
Item 6: Consider Adoption of Clean Energy Alliance Resolution No. 2023-009 Setting Rates and Approval of Agreements for Clean Energy Alliance Solar Plus Residential Distributed Microgrid Program Providing Solar and Battery Storage Systems
RECOMMENDATION
1. Conduct the Public Hearing: Open the Public Hearing, Receive Public Testimony, and Close the Public Hearing.
2. Adopt Resolution No. 2023-009 Setting Rates for Clean Energy Alliance Solar + Program Effective November 1, 2023.
3. Approve Power Purchase and Sale Agreement, Program Management Agreement, Program Support Agreement and Framework Distributed Microgrids Agreement with Participate.Energy, LLC and authorize the Chief Executive Officer to execute all documents subject to General and Special Counsel approval.
Chair Druker opened the public hearing and Interim Board Secretary Caputo reported on the notices. CEO Boswell presented the item noting that the Solar Plus Program would allow residential customers to have access to solar and battery storage systems with zero upfront cost to the homeowner, provides price stability, generates 100% renewable energy. The program would create grid stability, locally created Green Energy, and provide customers with the best value offer in the market. Ms. Boswell commented on the program partners Tesla, Inc., and Participate.Energy LLC, noting that Tesla offers turnkey residential, new homes commercial and utility scale solar and battery operation throughout the state and Participate.Energy provides the credit and cash support.
Board comments and questions included whether the program would be available to schools and churches; whether approval would prohibit CEA from entering into other agreements; DocuSign Envelope ID: 770BE0D5-61BE-45A6-B1EA-91632B7D9988
regarding multi-family housing and new projects whether it could be available or made a condition of residency; and will mobile home parks be included.
CEO Boswell indicated that the first phase of the program is geared to residential customers and upcoming phases would include commercial accounts including schools as well as battery access for those customers that have solar but no battery access. Also noted that the agreements are not exclusive, and CEA would be able to enter into other agreements.
Regarding multi-family and new projects Ms. Boswell commented that the program is geared toward single-family residences but that a grant application for vehicle charging at multi-family housing for underserved communities with a solar and battery storage component is in process and if successful could potentially become the pilot phase for multi-family communities. Regarding mobile home parks it was noted that each would be unique and many factors such as structure of the mobile home and whether the system could be installed would have to be considered.
Stephen Pollock of Participate.Energy commented that four cities have signed a contract and are moving forward with the program and the City of Lancaster has launched the program.
Interim Board Secretary Caputo commented that no requests to speak or any written communication have been received in the ten days prior to the hearing.
Motion by Musgrove, second by Bhat-Patel, to close the public hearing.
Motion carried unanimously, 6/0.
Motion by Musgrove, second by Becker, to adopt Resolution No. 2023-009.
Motion carried unanimously, 6/0.
Motion by Melendez, second by Bhat-Patel, to approve agreements with Participate.Energy, LLC and authorize the CEO to execute all documents subject to General and Special Counsel approval.
Motion carried unanimously, 6/0.
New Business
Item 7: Receive Annual Audited Financial Report for the Fiscal Year Ended June 30, 2023
RECOMMENDATION
Receive and file Clean Energy Alliance Annual Audited Financial Report for the Fiscal Year Ended June 30, 2023.
CEO Boswell introduced the item and Brett Bradford of Pisenti & Brinker LLP, who provided the Financial Report noting that upon completion of the audit an unmodified opinion was reported meaning the financial statements are materially accurate and no significant deficiencies or material weakness in internal control were noted for Fiscal Year ended June 30, 2023.
PUBLIC COMMENT: None
CEA Board received report.
DocuSign Envelope ID: 770BE0D5-61BE-45A6-B1EA-91632B7D9988
Item 8: Consider Approval of Wholesale Market Access Tariff Terms and Conditions, Wholesale Market Access Agreement and Positive Enrollment Agreements with San Diego County Water Authority and Poseidon Resources (Channelside) LP for Enrollment of the Channelside Account at the Carlsbad Desalination Plant
RECOMMENDATION
1) Approve the Wholesale Market Access Tariff Terms and Conditions; 2) Approve Wholesale Market Access Agreement that includes Positive Enrollment Agreements with San Diego County Water Authority and Poseidon Resources (Channelside) LP for enrollment of the Channelside account at the Carlsbad Desalination Plant. Authorize the Chief Executive Officer to execute all documents, subject to General Counsel approval.
CEO Boswell introduced the item and commented that Brent Fountain of the San Diego County Water Authority (SDCWA) is in attendance to answer any questions of the Board.
Ms. Boswell gave an overview of the item noting that the Board previously approved the MOU with SDCWA & Channelside to develop a program that would allow CEA to enroll the Channelside account and address the risks of serving such a large load account. The Wholesale Market Access Tariff (WMAT) was developed as a result of diligent teamwork of staff, technical consultants, and legal team. The WMAT provides the ability for CEA to serve Channelside and mitigate risks to CEA and its customers related to normal opt-out rates.
WMAT would be available to eligible non-residential accounts with an annual load greater than 150GWh that meet other certain criteria. WMAT is consistent with the JPA goal of reducing GHG Emissions, and provides customers with more control over energy supply by participating in power procurement among other benefits.
PUBLIC COMMENT: None
General Counsel Canlas commented that correspondence from a member of the public was received highlighting that there may be issues entering into a contract with Channelside.
Special Regulatory Counsel has looked at the issue and found that what CEA is doing today is creating a new category whereby all others that fit into the new category will be able do so under the same terms and conditions as what is before the Board.
Chair Druker commented that the agreement would benefit Carlsbad in reaching their Climate Action Plan goals and stated the importance of the agreement to CEA and SDCWA in hope that producing desalinated water may become less expensive.
Motion by Bhat-Patel, second by Musgrove, to approve the Wholesale Market Access Tarriff Terms and Conditions.
Motion carried unanimously, 6/0.
Motion by Bhat-Patel, second by Melendez, to approve the Wholesale Market Agreement.
Motion carried unanimously, 6/0.
DocuSign Envelope ID: 770BE0D5-61BE-45A6-B1EA-91632B7D9988
Item 9: Consider Approval of Clean Energy Alliance Solar Billing Plan (NEM 3.0)
RECOMMENDATION
CEA Board direct staff to:
Implement Solar Billing Plan to mirror San Diego Gas & Electric’s Solar Billing Plan and maintain CEA’s current Net Surplus Compensation methodology effective December 15, 2023; or
Implement a modified Solar Billing Plan to mirror San Diego Gas & Electric’s Solar Billing Plan which provides a $.01 per kWh premium to the Avoided Cost Component and maintain CEA’s current Net Surplus Compensation methodology effective December 15, 2023, for 5 years; or
Do not implement Solar Billing Plan.
CEO Boswell presented the item commenting that this is the new billing process for customers that have rooftop solar and applicable to customers that have applied with SDG&E for permits to install new solar systems after April 15, 2023. Staff is seeking direction as stated in staff recommendation. Ms. Boswell noted that the among the changes of the CPUC approved Solar Billing Plan (SPB) is the methodology for calculating charges and credits and Net Surplus Compensation calculation methodology, changes from an annual true-up to monthly, estimates solar system payback increased from 5-years to 9-years, and that CEA is not required to implement SBP. In addition, CEA customers with applications after April 15, 2023, will be placed on SBP for SDG&E Transmission and Delivery (T&D) as well as customers on NEM 1.0 and 2.0 who reach the end of their legacy period regardless of whether CEA adopts SBP.
Vice Chair Musgrove inquired, and CEO Boswell responded that the modified SPB is the recommendation of staff and supported by the majority of the Community Advisory Committee (CAC).
Board member Bhat-Patel exited the meeting at 2:58 p.m. and Member Melendez exited the meeting at 3:09 p.m.
PUBLIC COMMENT: CAC Vice Chair Don Mosier addressed the Board regarding the consensus of the CAC to incentivize rooftop solar supporting the addition of a 6 cents per KWh compensation for CEA customers who put excess solar power back to the grid.
Motion by Musgrove, second by Becker, to approve the implementation of a modified Solar Billing Plan to mirror San Diego Gas & Electric’s Solar Billing Plan which provides a $.01 per kWh premium to the Avoided Cost Component and maintain CEA’s current Net Surplus Compensation methodology effective December 15, 2023, for 5 years.
Motion carried unanimously, 4/0.
Item 10: Consider Approval of Establishment of a Feed-in-Tariff (Community Solar) Program and Direct Staff to Return with Program Guidelines and Related Documents
RECOMMENDATION
Approve Establishment of a Feed-In-Tariff (Community Solar) Program with the criteria recommended by staff and direct staff to return with a marketing campaign, program guidelines, application, and power purchase agreement.
DocuSign Envelope ID: 770BE0D5-61BE-45A6-B1EA-91632B7D9988
CEA Board adjourned this item to November 9, 2023, 12pm. City of Oceanside BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS: None
NEXT MEETING: Adjourned Board Meeting November 9, 2023, City of Oceanside, 300 North Coast Highway, Oceanside, CA 92054
ADJOURN: Chair Druker adjourned the meeting at 3:16 p.m. _______________________________________
Susan Caputo, MMC
Interim Board Secretary
DocuSign Envelope ID: 770BE0D5-61BE-45A6-B1EA-91632B7D9988