was approximately 15 minutes in length. The survey results represent a 95% confidence level margin of error and meet academic standards for statistical reliability. A summary of the results have been included in the CEO Report Power Point presentation and the full written report of results will be included in the May 2025 Board Agenda Packet.
CEA in the Community
To provide opportunities for the customer and communities we serve to meet with CEA staff and have their questions answered, staff continue to attend several in-person community events and give presentations.
CEA has been busy with many of these scheduled outreach efforts. Recent events and presentations that CEA participated in:
DATE DESCRIPTION
March 29, 2025 North County Climate Change Alliance
April 5, 2025 City of Escondido Earth Day
April 8, 2025 City of Vista City Council Meeting – Earth Day Proclamation April 15, 2025 Carlsbad City Council: Legislative Committee Meeting Presentation April 16, 2025 Carlsbad Chamber of Commerce: Green Business Expo April 19, 2025 Alta Vista Botanical Gardens/City of Vista Earth Day April 22, 2025 Sony Electronics Earth Day Fair
April 22, 2025 Del Mar Spring Climate Symposium
April 23, 2025 Vista Environmental Commission Presentation Upcoming events in which CEA will be participating include:
DATE DESCRIPTION
April 24, 2025 GRAZE at the Fields
April 25, 2025 Dr. Bronner’s Staff Earth Day Extravaganza April 28, 2025 Del Mar Sustainability Advisory Committee Presentation Call Center Activity and Participation Statistics
The following chart reflects customer activity through March 31, 2025.
April 24, 2025
CEO Admin Report
Call volumes to CEA’s Call Center decreased 5% from February 2025 to March 2025. The most common call topics for all customers (commercial and residential) were related to Billing inquiries, Net Energy Metering, and General Information.
The total number of calls received, response times and call duration through March 31, 2025, were as follows:
Monthly Summary – March 31, 2025
Stats by Month Mar Feb Jan Dec Total
Total Calls 719 753 942 686 27,934
Total Calls Connected to Agents 705 746 931 683 27,337
Average Seconds to Answer 0:00:21 0:00:21 0:00:10 0:00:07 Average Call Duration 0:09:56 0:09:59 0:10:49 0:10:17
The following chart reflects enrollments in CEA’s power supply products by City as of April 15, 2025:
Member City Clean Impact – 50%
Renewable
Clean Impact Plus -
75% Carbon Free
Green Impact – 100%
Renewable
Carlsbad 159 50,174 231
Del Mar 5 3,439 73
Escondido 151 53,671 71
Oceanside 200 69,154 100
San Marcos 120 34,790 80
Solana Beach 24 7,220 172
Vista 91 37,307 326
TOTAL ACCOUNTS 750 251,772 1,053
666
1171
723
963
1398
1218
984
620
686
942
753 719
0 200
400
600
800
1000
1200
1400
1600
1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb 1-Mar Total Calls Calls Connected to Agents
April 24, 2025
CEO Admin Report
Risk Oversight Committee
As noted in last month’s CEO Update, the Risk Oversight Committee (ROC) held its first meeting of the calendar year on Thursday, March 13, 2025. During the meeting, the Committee discussed adjusting the rate premiums for Green Impact and Clean Impact Plus to meet energy procurement costs and designing the rate schedule to set the Clean Impact Plus rate as the base rate moving forward. The ROC recommended bringing this rate design discussion forward to the Board for discussion and consideration and this item is scheduled for Board discussion on the April 24, 2025 Board Agenda.
CEA Employee Recruitment
With its recruiting consultant, CEA has been scheduling interviews and has already conducted preliminary interviews for the Clerk to the Board/Executive Assistant position. Interviews are currently being scheduled for the Key Accounts Specialist or Analyst, Programs Specialist of Analyst, Energy Analytics & Risk Analyst or Manager and Energy Contracts & Compliance Analyst or Manager positions. As reported last month, all five positions have generated significant interest.
Contracts $50,000 - $100,000 entered into by Chief Executive Officer
VENDOR DESCRIPTION AMOUNT
None.
Lobbyist Consultant Services
The Consent Agenda for the April 24, 2025 Board Meeting includes Board authorization to enter into a Professional Services Contract (PSA) for Lobbyist Services. Per prior Board authorization, staff issued a request for proposals for these services and conducted interviews with respondents in April 2025.
Following these interviews, staff selected Summit Advocacy LLC, as the preferred consultant. We have identified a not-to-exceed amount of $95,000 per year for these services to commence on May 1, 2025.
Other details of the contract terms are being finalized. The proposed PSA with Summit Advocacy, LLC will allow for greater insight and involvement in both legislative and regulatory matters affecting CEA and our customers.
FISCAL IMPACT:
There is no fiscal impact with this action.
Submitted for Board consideration:
___________________________________
Gregory Wade
Chief Executive Officer
ATTACHMENTS:
None.
Staff Report
DATE: April 24, 2025
TO: Clean Energy Alliance Board of Directors
FROM: Gregory Wade, Chief Executive Officer
ITEM 6: Receive Regulatory Update from Keyes & Fox
RECOMMENDATION:
Receive the Regulatory Update from Keyes & Fox.
BACKGROUND AND DISCUSSION:
Clean Energy Alliance contracts with Keyes and Fox for Regulatory Advocacy related activities. Each month Keyes and Fox provides an update to the CEA Board on key items of interest.
FISCAL IMPACT:
There is no fiscal impact from this action.
Submitted for Board consideration:
___________________________________
Gregory Wade
Chief Executive Officer
ATTACHMENTS:
A. Keyes & Fox Regulatory Report
1 Clean Energy Alliance
Regulatory Monitoring Report
To: Clean Energy Alliance (CEA) Board of Directors
From:
Tim Lindl, Partner, Keyes & Fox LLP
Jacob Schlesinger, Partner, Keyes & Fox LLP
Jason Hoyle, Director of Research, EQ Research, LLC
Subject: Monthly Regulatory Memo
Date: April 14, 2025
Keyes & Fox LLP and EQ Research LLC are pleased to provide CEA’s Board of Directors with this informational memo describing recent developments in key California regulatory and compliance-related updates from the California Public Utilities Commission (CPUC). Additional information is available in CEA’s Digest of Regulatory Updates.
RPS Rulemaking (R.24-01-017)
• On April 3, the CPUC issued a Letter providing formal notice of approval of Final 2024 Renewables Portfolio Standard (RPS) Procurement Plans, including CEA’s 2024 RPS Plan.
PCIA/ERRA OIR (R.25-02-005)
• On April 8, the CPUC issued a Scoping Memo and Ruling for Track 1 of this proceeding to update and reform Energy Resource Recovery Account (ERRA) and Power Charge Indifference Adjustment (PCIA) policies and processes. The expedited Track 1 will revise the resource adequacy (RA) market-price benchmark (MPB) calculation methodology, but not the RPS MPBs which were left out of the final scope, with a proposed decision in May 2025 in time for the revised methodology to be used in the October 2025 MPBs. Opening briefs are due April 21 and reply briefs are due April 30. A final decision is expected in June 2025. • Specifically, Track 1 will consider whether to expand the transaction pricing data used to determine the RA MPBs from the current approach that considers only recent transactions to include long-term transactions. An expanded data set would likely reduce the current RA MPBs, disconnect the RA MPBs from current market conditions, and increase costs for CCA customers by reducing the value of utility-owned generation. • Track 1 will also consider whether system, local, and flexible RA should be combined into a single RA value when calculating the RA MPB, as well as whether the Commission should eliminate transaction data (e.g. affiliated-party transactions and sheath or sleeve transactions) that is duplicative or does not reflect market-based transactions.
SDG&E Cost of Capital (A.25-03-013)
• On March 20, the large IOUs submitted their 2026 test year cost of capital applications. SDG&E’s Application (Amendment – Affordability Metrics) proposes an overall weighted average cost of capital/return on rate base of 8.21% based on a 46% long-term debt at a cost of 4.62% and 54% common equity with a return on equity (ROE) of 11.25%. Responses/protests to Applications are due April 24 and replies are due May 5. • SDG&E’s cost of capital as set in its last application (i.e., for 2023 test year) 42.25% LT debt at a cost of
4.34%, 52% common equity at a cost of 10.23%, and 2.75% preferred equity at a cost of 6.22%, with an overall rate of return of 7.45%. SDG&E’s proposal would increase its overall rate of return by 0.76% and its annual revenue requirement by $96.45 million.
• The CPUC adopted a uniform cost of capital mechanism (CCM) for PG&E, SCE, and SDG&E in D.08-05-035 which established the 3-year cost of capital proceeding cycle and provided two mechanisms for cost of capital adjustments during interim years, one for extraordinary or catastrophic events, and a formula adjustment Attachment A
2 mechanism which allows interim adjustments based on changes in the Moody’s utility bond rate relative to the CCM benchmark identified in an annual advice letter filing on July 15.
Diablo Canyon 2026 Forecast (A.25-03-015)
• On March 28, PG&E submitted its Application to recover 2026 Diablo Canyon costs through statewide rates and proposing its volumetric performance fee (VPF) plan. Protests and Responses are due May 1 and replies are due May 12.
• The Application forecasts costs for recovery through rates of extended operations at Diablo Canyon from January 1 - December 31, 2026. Total forecast costs are $1,339 million which are expected to be offset by $935 million in CAISO market revenue, resulting in a net revenue requirement for 2026 of $410 million, of which $28 million is allocated to be recovered from SDG&E ratepayers. For SDG&E, the system average rate for bundled customers would decrease 0.5%, and the system average rate for CCA customers would decrease 0.9% to $0.183/kWh.
SDG&E Green Access Programs (A.22-05-022)
• On April 1, the ALJ issued a Ruling requesting comments on the CPUC’s consideration of program implementation and associated issues for a Community Renewable Energy (CRE) Program and the modified Green Tariff Program established by D.24-05-065. Comments on the Ruling are due April 21 and reply comments are due May 1.
• California was among the largest awardees of Solar for All funding under the federal Inflation Reduction Act, receiving just under $250 million to develop and implement new California Solar for All initiatives. The California Solar for All initiative is a key part of the CRE program, and all Solar for All-funded projects will result in 100% of the award enabling low-income and disadvantaged communities to deploy and benefit from eligible zero-emissions technologies, as described in the Solar for All Work Plan. • Also included in the Ruling are questions related to SDG&E’s proposed cost recovery for its green tariffs.
SDG&E proposed to recover stranded Green Tariff Shared Renewables costs through an equal cents per kilowatt-hour rate from all customer classes via the public purpose program surcharge.
IRP Rulemaking (R.20-05-003)
• The next Integrated Resource Plan (IRP) filing will be due later in 2025, likely November 1. IRPs are typically due every two years, but the 2024 cycle was delayed. While formal guidance has yet to be issued, the process and timeline are expected to be similar to recent IRP cycles. • In mid-April, a ruling requesting comment on CPUC-provided LSE-specific load forecasts is typically issued, with a final ruling on load forecasts issued in June. Once load forecasts are finalized, capacity expansion and production cost modeling begins in earnest.
• Unlike RPS Plans, IRPs involve a formal internal review process. Internal reviews typically include presentation of the IRP to the Community Advisory Committee and final approval from the Board of Directors prior to formal submission of the IRP to the CPUC.
Staff Report
DATE: April 24, 2025
TO: Clean Energy Alliance Board of Directors
FROM: Greg Wade, Chief Executive Officer
ITEM 7: Consider Adoption on Resolution No. 2025-018 Approving the Fiscal Year (FY) 2025/26 – 2026/27 Clean Energy Alliance Strategic Plan and Provide Input on the FY 2025/26 – 2026/27 Clean Energy Alliance Draft Work Plan
RECOMMENDATION:
That the Clean Energy Alliance Board:
• Provide additional feedback and adopt Resolution No. 2025-018 approving the FY 2025/26 – 2026/27 Clean Energy Alliance Strategic Plan
• Provide feedback and input on the FY 2025/26 – 2026/27 Draft Clean Energy Alliance Work Plan BACKGROUND AND DISCUSSION:
At the Board Meeting on January 30, 2025, the Clean Energy Alliance (CEA) Board (Board) provided input and feedback on the Draft FY 2025/26 CEA Strategic Plan (Draft Plan). The Draft Plan proposed to the CEA Board was developed through review of key formation documents (Joint Powers Agreement), prior direction from the CEA Board and input gathered from meetings of the Community Advisory Committee (CAC). Key components of the Draft Plan include:
• Core Guiding Principles
• Mission Statement
• Goals
• Objectives
Core Guiding Principles
As a reminder for the Board, the Draft Plan and proposed Final Strategic Plan identify the following “Six Core Guiding Principles”:
1. Promote Use & Development of Clean Energy – reduce GHG emissions by providing 100% renewable energy as the default product for all CEA customers by 2035.
2. Build & Maintain Financial Sustainability – achieve financial sustainability and build reserves.
3. Provide Beneficial Customer Programs – offer a variety of programs that serve the needs of our customers, promote affordability, address communities of concern and further reduce GHG emissions.
April 24, 2025
Strategic Plan& Draft Work Plan
4. Actively Engage in Customer Advocacy – engage and advocate for CEA and its customers in regulatory and legislative matters.
5. Provide Exceptional Customer Service & Community Engagement – provide highly responsive and helpful customer service and opportunities for our staff to engage with our customers and the communities in which they live.
6. Promote Organizational Development – create an organization that fosters employee creativity and engagement in meeting CEA’s goals, recognizes employee achievements and supports employee development and growth.
The Goals and Objectives tied to each of these Six Core Guiding Principles set forth the framework from which a Draft Work Plan has been prepared as discussed later in this staff report.
Two Mission Statements were also developed and presented to the Board for consideration at the January 30, 2025 meeting. The Board selected the second of the two options presented. Additional input from the Board and the CAC has been included in the following proposed Mission Statement (additional language in bold):
“To empower local communities with the choice of sustainable and affordable energy for all customers, accelerating the transition to clean energy and fostering local economic growth, environmental responsibility, inclusivity and community well-being.” Staff is seeking additional input from the Board on this modified Mission Statement along with approval of the Proposed FY 2025/26-27 Final CEA Strategic Plan. The Proposed FY 2025/26-27 Final CEA Strategic Plan (Final Plan) is included as Attachment B.
Draft Plan Review
During the January 30, 2025 Board Meeting, the CEA Board supported the Draft Plan and provided the following additional input and feedback:
• The Draft Plan aligns well with prior Board direction • Support for and emphasis on customer advocacy objectives • Distill the Draft Plan down into "bite size" pieces for implementation • Continue emphasis on communications and social media presence • Support for more community outreach and engagement, including presence at community events, and need to focus on people who are not actively engaged in energy/electricity issues • Make the Draft Plan available online for comment
On February 10, 2025, the Draft Plan was presented to the Community Advisory Committee (CAC) for review and comment. There was general support among the CAC Members. Additionally, two CAC Members submitted individual comments with one set of comments including some minor edits, most of which were incorporated in the Proposed Strategic Plan. Those comments are included as Attachment C.
Additional comments received from the CAC included:
• Accelerate our transition to clean energy
• Pursue efforts to deploy virtual power plants and distributed microgrids • Emphasize energy affordability
• Improve bill presentation and clarity
April 24, 2025
Strategic Plan& Draft Work Plan
• Ensure that CEA communications include outreach to non-English speaking customers and those without computers and/or internet access
• Ensure that programs are equitably distributed to all customer segments In general, the comments received by both the Board and the CAC are already contemplated in or can be categorized under one or more of the Core Guiding Principles, Goals and Objectives of the Final Plan.
As directed by the Board, the Draft Plan was also made available on CEA’s website along with a survey intended to determine community interest in and the importance of the established Goals and Objectives of the Draft Plan. The survey also provided a section for respondents to make general comments. As of April 10, 2025, sixty-two (62) responses were submitted to the survey (see Attachment D). Not surprisingly, the Goals and Objectives garnering the highest level of support were targeted at customer cost savings, rate competitiveness and offering programs to help customers of all income levels decrease their energy costs. These included the following:
• Provide access to solar and battery storage to all segments of the community that contribute to cost savings; decreases energy use during peak periods while increasing reliance on clean energy. • Provide customers with access to programs that reduce energy use and address high electric bills. • Support customer retention by offering competitive rates while maintaining financial stability and achieving renewable/clean energy goals.
• Expand access to solar and battery systems at significantly reduced costs to low-income customers.
Encouragingly, a high number of respondents also valued the importance of clean energy in general and moving towards 100% renewable energy while also placing a high level of importance on the financial sustainability of CEA sufficient to obtain an investment grade credit rating.
Draft Work Plan
As noted above, concurrently with the preparation and review of the Draft Plan, a Draft Work Plan was prepared that is intended to implement the Goals and Objectives of the Final Strategic Plan. The Draft Work Plan prioritizes the Goals and Objectives of the Strategic Plan and aligns itself with prior direction of the Board as well as input from the CAC and those surveyed. The Draft Work Plan, together with feedback obtained during the review of the Strategic Plan, will also be used to inform CEA’s FY 2025/26 Budget.
The Draft Work Plan follows the same format as the Strategic Plan identifying each Guiding Principle and their corresponding Objectives. The Draft Work Plan then builds upon those by identifying specific implementation Measures, Key Performance Indicators (KPI), Staff Leads, Key Partners and Funding Source for each Objective. The Draft Work Plan is included in Attachment E and staff is seeking input and feedback on its format and content.
PROGRAM BUDGET DISCUSSION/FISCAL IMPACT:
As shown in the Draft Work Plan, each Objective, Measure and Key Performance Indicator has identified its Funding Sources as coming from the Operational Budget or, where applicable, a grant funding source such as the state’s Self Generation Incentive Program (SGIP) funding. During the upcoming FY 2025/26 Budget Cycle, the Board may wish to consider whether any Programs Budget should be allocated to any of these Work Plan priorities.
April 24, 2025
Strategic Plan& Draft Work Plan
In approving the current FY 2024/25 Budget, the Board allocated $600,000 to Programs. The projected five-year budget outlook presented to the Board during the last Budget Cycle calls for increasing the Programs Budget to $2 million in FY 2025/26 and, thereafter, increasing it by $2 million each year through FY 2028/29 ($4 million in FY27, $6 million in FY28 and $8 million in FY29). During the September 2024 Board Meeting, the Board received a report on the Distribution and Use of FY 2025/26 Budgeted Program Funds. Section 7.6 of the CEA Joint Powers Authority (JPA) Agreement provides the following direction regarding the expenditure of discretionary CEA revenues:
• Discretionary revenue may be used to:
o Provide programs and develop projects of CEA;
o Allow Member Agencies to direct funds into qualified CEA programs and projects or other customer benefits.
• The Board shall endeavor to achieve a balanced distribution of program and project benefits substantially commensurate with each Member Agency’s energy load; • The Board shall conduct periodic audits no less than every two years to verify the balanced distribution of program and project benefit and take corrective action necessary to achieve or continue to maintain a balanced distribution.
In compliance with the JPA Agreement, staff had evaluated the proportional share of the budgeted $600,000 program funds based on load and determined the following allocations at that time:
MEMBER AGENCY 12-MONTHS USAGE
(MWh) Percentage (%) of Load Allocation of Funds
City of Carlsbad 587,116 28% $168,000
City of Del Mar 25,178 1% $6,000
City of Escondido 443,426 21% $126,000
City of Oceanside 467,097 22% $132,000
City of San Marcos 260,126 12% $72,000
City of Solana Beach 57,264 3% $18,000
City of Vista 275,071 13% $78,000
Total Territory 2,115,278 100% $600,000
At that time, the Board was considering utilizing these funds to provide a “PCIA credit” or rebate to CEA customers. As a metric for allocation purposes, staff recommended offering this benefit to eligible California Alternate Rate for Energy (CARE) customers. Given the number of CARE customers in each member city and the limited Program Funds as shown above, the Board determined that using the funds for that purpose would not achieve a proportionate or meaningful benefit to CEA’s CARE customers (or to any customers for that matter). As such, the Board elected not to pursue the PCIA credit/rebate at that time.
Attempting to allocate this amount of Programs Budget funding to any one of the programs identified in the Draft Work Plan at this point may result in a similarly minimal benefit to CEA’s customers. Even waiting until FY 2025/26, when CEA expects to budget $2 million of Program funding may still result spreading these limited funds too thinly to provide a meaningful benefit. Rather, given that CEA has just reached its final month of customer enrollment during its latest and sizable expansion, the Board may instead wish to consider forestalling the allocation of these discretionary Program funds until such time as CEA has April 24, 2025
Strategic Plan& Draft Work Plan
achieved a more positive net position and economic stability. As noted in the Draft Work Plan, CEA staff can rely upon operational revenues and grant funding to administer its established and future programs until such time.
After receiving Board input, staff will finalize Draft Work Plan including its Implementation Measures and Key Performance Indicators and bring it back to the Board as part of the FY 2025/26 Budget for consideration by the Board at the May 29, 2025 Regular Board Meeting.
Submitted for Board consideration:
___________________________________
Gregory Wade
Chief Executive Officer
ATTACHMENTS:
A. Resolution No. 2025-018
B. Fiscal Year 2025/26 – 2026/27 Final Clean Energy Alliance Strategic Plan C. CAC Member Comments on the Draft Strategic Plan
D. Draft Strategic Plan Survey Responses
E. Fiscal Year 2025/26 – 2026/27 Draft Work Plan
CLEAN ENERGY ALLIANCE
RESOLUTION NO. 2025-018
A RESOLUTION OF THE BOARD OF DIRECTORS OF CLEAN ENERGY
ALLIANCE APPROVING THE FISCAL YEAR 2025/26 – 2026/27 CLEAN
ENERGY ALLIANCE STRATEGIC PLAN
WHEREAS, the Clean Energy Alliance (CEA) is a joint powers agency formed on November 4, 2019, under the Joint Exercise of Power Act, California Government Code section 6500 et seq., WHEREAS, Staff has prepared the Clean Energy Alliance 2025/26-27 Strategic Plan for Board consideration; and
WHEREAS, the proposed Strategic Plan has been developed through the following process:
• Review of formation documents
• Input from the CEA Board of Directors
• Input from the Community Advisory Committee
• Results from a Community Survey; and
WHEREAS, the adoption of the Strategic Plan will guide work plan priorities for the budget over the next three fiscal years; and
WHEREAS, the Final 2025/26-27 Strategic Plan was presented to the Board for approval at its April 24, 2025.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Clean Energy Alliance, as follows:
Section 1. The Board of Directors of the Clean Energy Alliance hereby approves the Fiscal Year 2026/26 – 2026/27 Clean Energy Alliance Strategic Plan (Exhibit A).
Attachment A
Resolution No. 2025-018
Strategic Plan
The foregoing Resolution was passed and adopted this 24th day of April, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
________________________________________
Katie Melendez, Chair
ATTEST:
____________________________
Kaylin McCauley, Board Secretary
Clean Energy Alliance
Strategic Plan
FY 2024/25 – FY 2026/27
Attachment B
2 Clean Energy Alliance Strategic Plan
FY 2024/25 – FY 2026/27
Purpose
To establish a strategic plan including guiding principles, goals, and strategic objectives for Clean Energy Alliance (CEA) through FY2026/27.
Outcomes
• Gather background information on CEA’s goals and focus areas based on foundational documents, Community Advisory Committee (CAC) input, and CEA Board (Board) direction, and consolidate into core guiding principles. • Formalize CEA’s Core Guiding Principles, Goals, and Mission Statement and define Strategic Objectives in the current staff Work Plan that are in support of these. • Establish a process for updating the Work Plan, incorporating it into the budget, and regularly reporting on its progress.
Process
Fall 2024
Review Joint Powers Authority (JPA) Agreement and other foundational documents for baseline guidance on service and focus areas.
December 2024 Gather input from staff and strategic advisory partners.
January 2025
Present first draft/first phase to Board for initial feedback on components of the Strategic Plan:
• Core Guiding Principles
• Mission Statement
• Goals
• Objectives
February 2025 Gather additional input from CAC and update based on input from Board and CAC.
March 2025 Present final draft of Strategic Plan reflecting input received to Board for consideration of adoption.
April-May 2025 Incorporate principles, goals, and objectives into an updated Work Plan that informs the budget.
3 Clean Energy Alliance Strategic Plan
FY 2024/25 – FY 2026/27
Background – Foundational Guidance
Since formation in 2019, CEA has been focused on successful enrollments:
2021 (Carlsbad, Del Mar & Solana Beach), 2023 (Escondido and San Marcos), 2024 (Oceanside and Vista) and 2025 (Channelside). Now that CEA is at a stable state and nearing full enrollment in its service territory, it is appropriate to identify its focus for the next two (2) fiscal years.
There are several sections of the CEA JPA Agreement that provide guidance on areas of focus over the next few years. These include:
• 6(b) … rates … that are competitive with those offered by …San Diego Gas & Electric (SDG&E), for similar products with a target generation rate at least 2 percent below SDG&E’s based product generation rate;
• 6(c) … achieving – and sustaining – the Climate Action Plan goals of the Parties; • 6(d) …lower greenhouse gas (GHG) emissions than SDG&E, … achievement of the Parties’ greenhouse gas reduction goals and renewable electricity goals; • 6(e) … energy portfolio that incorporates energy efficiency and demand response programs;
• Section 6.4 Renewable Portfolio Standards. “...achieve – and sustain – a renewable energy portfolio with 100 percent renewable energy … by no later than 2035… • Section 6.5 Power Supply Requirements “... power supply base product will be greater than or equal to 50% qualified renewable sources…. In no event … a lesser amount of renewable resources than the base product provided by SDG&E to its customers.”
• Section 7.6 Discretionary Revenues … establish policies concerning the expenditure of discretionary revenues… discretionary revenues may be used to:
(1) provide programs and develop projects of the Authority or (2) allow Parties to direct funds into qualified Authority programs and projects, or provide other ratepayer benefits.
The Board shall endeavor to achieve a balanced distribution of program and project benefits substantially commensurate with each Party’s energy load (“balanced distribution”).
The Board shall conduct periodic audits no less than every two years in order to verify the balanced distribution of program and project benefits and take any corrective action necessary to achieve or continue to maintain a balanced distribution.
Foundation
4 Clean Energy Alliance Strategic Plan
FY 2024/25 – FY 2026/27
In addition to the directives identified in the JPA Agreement, CEA has a responsibility to ensure long-term financial stability and compliance with legal, regulatory and contractual requirements.
Core Guiding Principles and Goals
Based on the above background information as well as staff input reflecting the importance of organizational development in achieving successful overall outcomes for CEA, the following five Guiding Principles have been identified. For each guiding principle, staff have developed a goal statement that drives that principle.
1. Promote Use & Development of Clean Energy
– reduce GHG emissions by providing 100% renewable energy as the default product for all CEA customers by 2035.
2. Build & Maintain Financial Sustainability
– achieve financial sustainability and build reserves.
3. Provide Beneficial Customer Programs
– offer a variety of programs that serve the needs of our customers, promote affordability, and further reduce GHG emissions.
4. Actively Engage in Customer Advocacy
– engage and advocate for CEA and its customers in regulatory and legislative matters.
5. Provide Exceptional Customer Service & Engagement
– provide highly responsive and helpful customer service and opportunities for our staff to engage with our customers.
6. Promote Organizational Development
– create an organization that fosters employee creativity and engagement in meeting CEA’s goals, recognizes employee achievements and supports employee development and growth.
Core Guiding
Principles
and Goals
5 Clean Energy Alliance Strategic Plan
FY 2024/25 – FY 2026/27
Mission Statement
Building on the foundational background, guiding principles, and goals discussed so far, the CEA Board has developed the following mission statement: Mission
Statement
"To empower local communities with the choice of sustainable and affordable energy for all customers, accelerating the transition to clean energy and fostering local economic growth, environmental responsibility, inclusivity and community well-being."
6 Clean Energy Alliance Strategic Plan
FY 2024/25 – FY 2026/27
Strategic Objectives
Below are objectives currently underway or planned in support of the Core Guiding Principles and Goals as described above. Collectively, these guiding principles, goals, and objectives will guide future operational work plans, staffing, and budget proposals.
1. GUIDING PRINCIPLE: PROMOTE USE & DEVELOPMENT OF CLEAN ENERGY Goal: Reduce GHG emissions by providing 100% renewable energy as the default product for all CEA customers by 2035.
Objectives:
a) Gradually increase CEA’s Renewable Portfolio Standard (RPS) to achieve 100% renewable energy.
b) Support customer retention and engagement by highlighting customers who have opted up to CEA’s 100% renewable energy Green Impact product. c) Support achievement of member agencies’ CAP building decarbonization and energy efficiency goals through customer access to grant-funded and/or ratepayer-funded energy efficiency programs.
d) Pursue local generation projects, including those in partnership with member agencies, to utilize publicly owned facilities for solar and energy storage projects.
2. GUIDING PRINCIPLE: BUILD & MAINTAIN FINANCIAL STABILITY Goal: Achieve financial sustainability and build reserves.
Objectives:
a) Achieve sufficient financial reserves with a minimum of one hundred twenty (120) days liquidity on hand (DLOH) to support rate stability. b) Manage procurement and financing costs through achievement of an investment-grade credit rating.
c) Analyze and adjust the rate premiums for the Clean Impact Plus and Green Impact energy products to ensure appropriate cost recovery. d) Support customer retention by offering competitive rates while maintaining financial stability and achieving renewable/clean energy goals. e) Reduce Resource Adequacy (RA) costs by reducing peak load through energy demand management programs.
Strategic
Objective
7 Clean Energy Alliance Strategic Plan
FY 2024/25 – FY 2026/27
3. GUIDING PRINCIPLE: PROVIDE BENEFICIAL CUSTOMER PROGRAMS Goal: Offer a variety of programs that serve the needs of our customers, promote affordability, and further reduce GHG emissions.
Objectives:
a) Provide customers with access to programs that reduce energy use and address high electric bills.
b) Provide access to solar and battery storage to all segments of the community that contributes to cost savings; decreases energy usage during peak periods while increasing reliance on clean energy.
c) Expand access to solar and battery systems at significantly reduced costs to low-income customers. d) Retain customers and encourage participation in State funded income-based assistance programs.
e) Work with member agencies to identify and design energy programs for government on City-owned properties or community hubs.
f) Collaborate with San Diego Regional Energy Network (SDREN) and Southern California Regional Energy Network (SoCal REN) to expand programs offered to CEA customers.
4. GUIDING PRINCIPLE: ACTIVELY ENGAGE IN CUSTOMER ADVOCACY Goal: Engage and advocate for CEA and its customers in regulatory and legislative matters.
Objectives:
a) Maintain participation in legislative and regulatory proceedings that support CEA’s guiding principles and goals.
b) Actively advocate for CEA and its customers in issues such as affordability, renewable energy procurement, and local control.
c) Monitor and advocate for fair and reasonable Power Charge Indifference Adjustment (PCIA) charges.
d) Engage with local elected officials to communicate benefits CEA provides its customers and influence legislative decisions that support CEA’s goals.
8 Clean Energy Alliance Strategic Plan
FY 2024/25 – FY 2026/27
5. GUIDING PRINCIPLE: PROVIDE EXCEPTIONAL CUSTOMER
SERVICE & ENGAGEMENT
Goal: Provide highly responsive and helpful customer service and opportunities for our staff to engage with our customers.
Objectives:
a) Increase CEA’s presence in the communities served and provide accurate information to customers.
b) Promote CEA as the preferred customer-focused renewable energy service provider in North San Diego County, adding value to the community and the environment.
c) Engage with CEA customers to provide information to and increase awareness of CEA’s programs, services and benefits; maintain strong customer participation and communication; and gather feedback from customers and community members.
d) Develop a comprehensive customer communications strategy to reach CEA’s diverse communities.
6. GUIDING PRINCIPLE: PROMOTE ORGANIZATIONAL DEVELOPMENT Goal: Continue to create and cultivate an organization that fosters employee creativity and engagement in meeting CEA’s goals, recognizes employee achievements, and supports employee development and growth.
Objectives:
a) Achieve continuity in operations by developing or expanding upon key operational processes and procedures such as key workflows, performance evaluations, and recruitment and onboarding.
b) Support employee development through participation in California Community Choice Association’s committees, workshops and conferences. c) Encourage employee growth by facilitating participation in professional education opportunities.
9 Clean Energy Alliance Strategic Plan
FY 2024/25 – FY 2026/27
Next Steps
Upon finalization of this Strategic Plan, incorporating Board input, next steps include:
1. Review with Community Advisory Committee.
2. Present final to Board for adoption.
3. Finalize a Work Plan for FY 25-27 from the goals and objectives that include key performance indicators to track success.
4. Develop a budget and staffing plan to present to the Board for consideration.
Work Plan
Attachment C
Clean Energy Alliance
Strategic Plan Survey Summary
March 14-April 14, 2025
Part 1: Demographic
Question 1: Which service area do you live in?
Attachment D
Part 2: Prioritizing Plan Objectives
Constant Contact Rank Order Calculations
For rank order questions, each response option earns points based on how it is ranked by respondents. Higher-ranked options receive more points. For example, in a three-option question:
● A 1st place ranking earns 3 points
● A 2nd place ranking earns 2 points
● A 3rd place ranking earns 1 point
Constant Contact adds up the total points for each option across all responses to determine its “Total Score.” This score reflects overall preference — the higher the score, the more favorably the option was ranked.
Question 2: Rank the objectives for Goal #1 in order of your priority.
GOAL #1: Reduce GHG emissions by providing 100% renewable energy as the default product for all CEA customers by 2035.
Question 3: Rank the objectives for Goal #2 in order of your priority.
GOAL #2: Achieve financial sustainability and build reserves.
Question 4: Rank the objectives for Goal #3 in order of your priority.
GOAL #3: Offer a variety of programs that serve the needs of our customers, promote affordability, and further reduce GHG emissions.
Question 5: Rank the objectives for Goal #4 in order of your priority.
GOAL #4: Engage and advocate for CEA and its customers in regulatory and legislative matters.
Question 6: Rank the objectives for Goal #5 in order of your priority.
GOAL #5: Provide highly responsive and helpful customer service and opportunities for our staff to engage with our customers.
Question 7: Rank the objectives for Goal #6 in order of your priority.
GOAL #6: Continue to create and cultivate an organization that fosters employee creativity and engagement in meeting CEA’s goals, recognizes employee achievements, and supports employee development and growth.
Part 3: Additional Feedback Open Response
It is counter productive to your goals for the state to rework the grandfathered rate structure for roof top solar installations. To the extent you agree and have the power please advocate for retaining the existing structure. Thanks
Most important to get users to upgrade to Green Impact and not opt out! News article explaining to the public the benefits of cleaner energy
Can ANYBODY encourage cities, particularly Carlsbad to ban the use od gas leaf blowers? There are so many; they are so loud and VERY polluting!
Very hard to rank most of these because you neglected to say what stategy methid or steps would be used to attempt to achieve the item
N/A
Please consider strategies to insure continuity of CEA program in light of the anti-environmental stance of the current federal government.
I am signed up for 100% renewables. But I have no real idea what you do and do not do for me as customer or in advancing 100% renewable energy in Carlsbad.
We need a better plan to add solar batteries to current solar homeowners such as myself. CES should be looking for best companies and offer a expandable one or two unit battery to get started on energy independence.
Please focus on FULL COST ACCOUNTING when determining electric generation sources. Utility scale simply socializes costs and privatizes profits.
I wasn’t always clear what some of the option meant
CEA needs more staff. I love to see CEA staff out in the community. They are very knowledgeable when I have asked questions. They get back to you when called. But there are not enough of them.
They are working hard and need support with more staff. You are expanding programs. Who will be responsible for those programs? You need more people doing this work. I viewed a board meeting and noticed you spend very little on staffing. Please spend more and get more staff.
When purchasing energy from 100% renewable sources, try to pick suppliers that have systems that do the least ecological damage to the planet. Long-term battery system are ever evolving, please try to choose systems that pose the lease threat to the environment. I.e. lithium thermal runaway. If every client of yours, industrial switched to 100% renewable today, could you provide the energy needed when the sun doesn't shine?
Lower costs especially for low income residents
Goal 1 or 3 should include an action to promote residential and small business electrification programs.
I strongly support and encourage active engagement with SDREN as soon as it begins operation.
We've needed a REN for a long time!
Very concerned about California’s legislature wanting to take away NEM 1 and NEM 2 grandfathered benefits. Would love to see CEA fight for it’s customers to keep these benefits.
This survey identifies all the important parts that go into making the CEA work and trying to list things by importance is nearly impossible because they all matter. To me along with the great work that has begun it's also an important time to expand local solar or wind production and storage. I believe parking lots are a perfect place to place solar panels, charging stations, and battery storage every day to serve those with electric cars and then distribute power through micro grids.
The goal should be hour-by-hour carbon-free (or renewable) energy, rather than the RPS relying on RECs to offset emissions at certain times of day / year to get to 100%.
Create insensitive for customers that produce more electricity then they use. Create a teared program, i.e. generate 500kwh more than used, 1,000kwh, etc. Larger payouts based on tear Promote incentives for customers to install solar and policies that make it economical to own solar panels.
All these goals are important. It's hard to rank them. Some are not easily understood such as "Achieve continuity in operations by developing or expanding upon key operational processes and procedures such as key workflows, performance evaluations, and recruitment and onboarding." Something that isn't easily understood is likely to be rated lower, but if understood better might get a higher ranking.
Purchase energy at a reasonable rate ie. higher than SDG&E pays from customers with excess capacity and battery storage.
Build microgrids throughout the service area. Assist public facilities in building generating and storage systems to provide energy for customers that are unable to install solar, multi family rentals and condominiums. Encourage industrial parks to build solar generation and storage. Reduce to the minimum energy purchases from SDG&E and investor owned energy providers.
I support ALL of the items addressed in the survey--please don't assume a low ranking means the item is not important! I ranked some items low because it wasn't clear what they were. For example " Achieve continuity in operations by developing or expanding upon key operational processes and procedures such as key workflows, performance evaluations, and recruitment and onboarding." and "Achieve continuity in operations by developing or expanding upon key operational processes and procedures such.
As a customer of CEA, my energy usage and costs are only accessible through SDG&E billing information as far as I can tell. It would be nice if I could look up my CEA account at the CEA to understand use and costs better, especially at the annual true-up date. -Simply ranking the strategies does not seem to be very valuable input- especially with no information on the technical programs.
- See nothing except maybe 4d that would have CEA discourage gas infra- seems like that should be part of the program.
- Not enough community ediucatiomn has been provided to reduce opt outs - Only 3c and d targeted disadvantaged communities- think more is needed to ensure support of CARE customers and their participation
-Not enough emphasis on local econ development
Affordability initiatives are priority number 1. Far and above anything else.
Employee development programming is a distant priority compared to customer affordability.
Good plan!
I love the green impact champion stickers . Provide customers estimmates of how much their bills would change if upgraded to 100% sustainable energy so they can decide if it meets their values and budget.
Advertise what CEA is for ( sustainable energy not reducing bills,) cos most people on eg Nextdoor have no idea why they are now with CEA instead of Sdg&e and think it is only about reducing their bills.
On some goals, I ranked because the survey format wouldn't allow me to skip -- but in some areas (e.g., Goals 3 and 6), think Board and Staff would be more informed than I am, and better positioned to make the best decisions. I generally have a high level of trust and confidence in CEA and its Board and staff.
I support community battery and PV for local generation for those that support clean energy but do not have a dwelling that can afford it's own system. The Maerkle Reservoir Solar Study and Storage project should be the first in a line of community projects for Carlsbad that supports these goals along with providing public safety by emergency power for the Service Center complex.
CEA FY26-27 Work Plan
Funding Source
Guiding Principle # Objective Measure KPI Staff Lead Key Partners Column1
1. CLEAN ENERGY a)
Gradually increase CEA’s Renewable Portfolio Standard (RPS) to achieve 100% renewable energy
Increase base RPS to 55% in 2026, 60% in 2027,
75% for 2028-2030, and 100% by 2035.
Meet or exceed the aforementioned
RPS targets for each calendar year. Dan P PEA Operational Budget b)
Support customer retention and engagement by highlighting customers that have opted up to CEA’s 100% renewable energy Green Impact product
- Continue implementation of Green Impact
Champion Program
- Add at least one more member
agency to our Greeen Impact
Champions list per year
- Add two new Green Impact
Champion businesses per year
- Host one Green Impact
Champions recognition event to
recognize commercial participants Kaitlin M & Rob H Tripepi Smith Operational Budget c)
Support achievement of member agencies’ CAP goals for building decarbonization and energy efficiency goals through customer access to grant-funded and/or ratepayer-funded energy efficiency programs
- Pursue programs through the SoCal EBD Grant
Coalition or SDREN
- Tap into existing ratepayer funds to implement
energy efficiency programs
- Support member cities in achieving their CAP
GHG Reduction Goals
- Montior each member agency CAP
for compliance with its goals
- Submit application to Elect to
Administer Energy Efficiency funds
- Establish a policy for member
cities to adjust their default energy
product
- Present a draft policy for Board
Adoption by May 2026 Kaitlin M & Rob H
Member Agency Staff,
Frontier Energy. PEA Operational Budget
d)
Pursue local generation and dispatchable capacity projects, including in partnership with member agencies to utilize publicly owned facilities for solar and energy storage projects
- Total MW of local generation and dispatchable
capacity projects
- Number of relevant program offerings for
publicly owned facilities
- 15MW of local PPAs or ESSAs
executed by 2026
- 10MW of local PPAs or ESSAs
operational by 2028
- 1-2 program offerings for publicly
owned generation and/or capacity
by 2026
Dan P
(PPAs/ESSAs)
Rob H / Kaitlin M
(program) Program partner (TBD) Operational Budget
2. FINANCIAL STABILITY a)
Achieve sufficient financial reserves with a minimum of one hundred twenty (120) days liquidity on hand (DLOH) to mitigate the impact of energy cost volatility on customer rates and support rate stability. - End FY2025 with positive Net Position
- Extend JP Morgan Line of Credit
- Build reserves to meet all applicable targets
- End FY2025 with positive Net
Position
- Extend JP Morgan Line of Credit
- Build reserves to meet all
applicable targets Greg W/Andy S Operational Budget
b)
Minimize procurement and financing costs through achievement of investment grade credit rating Obtain investment grade credit rating by 2028 Obtain investment grade credit
rating by 2028 Greg W/Andy S JPMorgan Operational Budget c)
Analyze and adjust the rate premiums for the Clean Impact Plus and Green Impact energy products to ensure appropriate cost recovery. - Biannually calculate difference between cost of
each rate product and the corresponding
premium.
Ensure rates are covering costs
annually Dan P PEA Operational Budget
d)
Support customer retention by offering competitive rates while maintaining financial stability and achieving renewable/clean energy goals. - Focus on building financial reserves
Maintain rate competetiveness
including lower PCIAs Staff Keyes & Fox Operational Budget e)
Reduce Resource Adeqacy (RA) costs by reducing peak load through energy demand management programs.
- Develop/Implement demand response
programs Staff PEA Operational Budget
3. CUSTOMER PROGRAMS a)
Provide customers with access to programs that reduce energy use and address high electric bills
- Continue to implement Solar Plus and Battery
Bonus Programs
- Implement PeakSmartSavers Program
- Implement PeakSmart Savers
Program
- Implement Grid Services for
battery dispatch Kaitlin M & Rob H P.E
Operational &
Programs Budget
b)
Provide access to solar and battery storage (and other Energy Programs) to all segments of the community that contributes to cost savings and decreases energy usage during peak periods while increasing the availabilty of and reliance upon clean energy. - Establish a policy that creates a fair and
effective distribution of programs that benefits all
segments of the community and supports CEA’s
broader goals of sustainability and equity
Present a draft policy for Board
Adoptinon by May 2026 Kaitlin M & Rob H P.E, Calpine, TBD Operational &
Programs Budget
c)
Expand access to solar and battery systems at significantly reduced costs to low-income customers
- Implement Solar Plus Connect Program
- Implement Battery Bonus Program
Achieve a 1% conversion rate for
the Battery Bonus Program. Kaitlin M & Rob H P.E
SGIP/Operational
Budget/Programs
Budget
Attachment E
d)
Retain customers and encourage participation in State funded income-based assistance programs Apply for SGIP assistance for eligible customers - Enroll 50-100 customers in Solar
Plus Connect the first year of
funding availability
- Enroll 50 customers in Battery
Bonus Program Kaitlin M & Rob H P.E
SGIP/Operational
Budget
e)
Work with member agencies to identify and design energy programs for government on City-owned properties or community hubs Participate in SDREN to devleop and implement
programs
Regularty report out CPUC required
participation metrics tracked by
SDREN Kaitlin M & Rob H SDCP
SDREN/Operational
Budget
f)
Collaborate with San Diego Regional Energy Network (SDREN) and Southern California Regional Energy Network (SoCal REN) to expand programs offered to CEA customers Develop and Implement programs Kaitlin M & Rob H SDCP SDREN/Operational
Budget
4. CUSTOMER ADVOCACY a)
Maintain participation in legislative and regulatory proceedings that support CEA’s guiding principles and goals Work with Regulatory Counsel and hired lobbyist Emily F Keyes & Fox Operational Budget b)
Actively advocate for CEA and its customers in issues such as affordability, renewable energy procurement, and local control Hire a lobbyist to assist Legislative advocacy Emily F Keyes & Fox Operational Budget c)
Monitor and advocate for fair and reasonable Power Charge Indifference Adjustment (PCIA) charges
Work with Regulatory Counsel on PCIA/ERRA
proceeding Emily F Keyes & Fox Operational Budget
d)
Engage with local elected officials to communicate benefits CEA provides its customers and influence legislative decisions that support CEA's goals.
Annual City Council presentations to Member
Agency's Councils Greg W/Staff CalCCA Operational Budget
5. CUSTOMER
SERIVCE/ENGAGEMENT
a)
Increase CEA’s presence in the communities served and provide accurate information to customers
- Continue marketing, education and outreach
efforts
- Directed social media effort
- Increase social media follwers by
[__] % annually
- Develop a tooklit for CBOs to
share information about CEA & Staff Tripepi Smith Operational Budget b)
Promote CEA as the preferred customer-focused renewable energy service provider in North San Diego County and add value to the community and the environment
- Continue marketing, education and outreach
efforts. Improve strategic account management
and stakeholder relationships Develop strategic
relationships with large and/or under-represented commercial customers and community based organizations
- Directed social media effort
- Develop relationships with 20% of
the top 50 highest users by July
2026
- Establish a bench of partner CBOs
by July 2026. Staff Tripepi Smith Operational Budget
c)
Engage with CEA customers to provide information about CEA’s programs, services and benefits; maintain strong customer participation and communication; and, gather feedback from customers and community members
- Co-host or host informational sessions,
workshops, and community forums to educate
residents and businesses about CEA
- Collaborate with local organizations,
businesses, and government agencies to expand
outreach efforts
- Work with newspapers, radio stations, and
local TV channels to feature stories and
advertisements about the CEA program
- Develop brochures, flyers, and FAQs that
explain how CEA works and its benefits and
introduce educational programs in local schools
to raise awareness among students and their
families
Increase external advertising
partnerships by [__] % in FY 2026.
Partner with at least 2 spanish
language media outlets Staff Tripepi Smith Operational Budget d)
Develop a comprehensive customer communications strategy to reach CEA's diverse communities.
- Develop brochures, flyers, and FAQs that
explain how CEA works and its benefits and
introduce educational programs in local schools
to raise awareness among students and their
families
- Improve trust and communication with CEA's
Develop a plan in FY 2026.
Complete a review of marketing
collateral. Kaitlin M & Rob H Tripepi Smith Operational Budget
6. ORGANIZATIONAL
DEVELOPMENT a)
Achieve continuity in operations by developing or expanding upon key operational processes and procedures such as key workflows, performance evaluations, and recruitment and onboarding Expand staff per Board-approved Position
Control Plan
- Hire four employees in FY 2025
per Position Control Plan
- Hire two employees in FY 2026 per
Position Control Plan Greg W Recruiting Consultant Operational Budget b)
Support employee development through participation in California Community Choice Association's committees, workshops and conferences.
- Assign/Attend CalCCA Committees
- Attend Annul CalCCA Conference (all staff) Greg W/Staff Operational Budget c)
Encourage employee participation in professional education opportunities.
- New CEA staff participation in the upcoming
USD EPIC Energy Academy Cohort (3). Greg W/Staff Operational Budget Staff Report
DATE: April 24, 2025
TO: Clean Energy Alliance Board of Directors
FROM: Gregory Wade, Chief Executive Officer
ITEM 8: Rate Design/Premium Discussion
RECOMMENDATION:
Receive the presentation on Clean Energy Alliance’s (CEA’s) Rate Design and Premium Rates and provide feedback.
BACKGROUND AND DISCUSSION:
Key power supply products that CEA must purchase to meet regulatory Resource Adequacy (RA) and Renewable Portfolio Standards (RPS) obligations, and to meet CEA’s broader renewable energy goals, have fluctuated significantly over the past few years. Rising prices of these products in 2023 and 2024 resulted in significant power supply cost increases for CEA, though prices have decreased significantly in late 2024 and early 2025. CEA strives to set the rate difference between its three products – Clean Impact, Clean Impact Plus, and Green Impact – to reflect the anticipated cost of these products, which may involve updating these premiums as the prices for these products change. Additionally, CEA currently sets its base rate to the Clean Impact product with Opt-Up costs for Clean Impact Plus and Green Impact, currently at
0.1 cents per kilowatt-hour (kWh) and 0.75 cents per kWh, respectively. Given that the vast majority of CEA’s customers are Clean Impact Plus customers, staff recommends thatthe Board consider setting Clean Impact Plus as the base product rate with an Opt-Up option for Green Impact and an Opt-Down option for the Clean Impact product.
For discussion amongst the Board, CEA staff and CEA’s power supply consultants at Pacific Energy Advisors (PEA) will provide an update on these cost trends and will share a proposed revised Opt-Up / Opt-Down rate structure. CEA anticipates updating the proposed rate structure based on Board feedback, as well as potentially revising the Opt- Up / Opt-Down premium and discount rates based on renewable and carbon-free energy costs as of later this year. An updated rate structure and rate premiums will be proposed to the Board in the second half of calendar year 2025.
April 24, 2025
Rate Design/Premium Discussion
Risk Oversight Committee
On March 13, 2025, the Risk Oversight Committee (ROC) held its first meeting of the calendar year. During the meeting the ROC discussed general energy market and portfolio matters and also discussed the potential to adjust the rate premiums for CEA’s Green Impact and Clean Impact Plus products to meet energy procurement costs. The ROC also discussed modifying the rate schedule to set Clean Impact Plus as the base rate moving forward. The ROC recommended support for setting Clean Impact Plus as the base rate and moving this discussion forward to the full Board for discussion and consideration.
Community Advisory Committee
At their meeting on April 10, 2025, the Community Advisory Committee (CAC) also received a report on the proposed rate design and possible rate premium adjustments. The CAC was also supportive of the rate design change to set Clean Impact Plus as the base rate.
FISCAL IMPACT:
There is no fiscal impact from this action. If CEA chooses to adopt any rate premium changes, potential fiscal impacts will be estimated and reviewed as a part of a future Board meeting.
Submitted for Board consideration:
___________________________________
Gregory Wade
Chief Executive Officer
ATTACHMENTS:
None.
Staff Report
DATE: April 24, 2025
TO: Clean Energy Alliance Board of Directors
FROM: CEO Performance Review Subcommittee
Johanna N. Canlas, General Counsel
ITEM 9: Approving the Third Amendment to the Chief Executive Officer’s Employment Agreement RECOMMENDATION:
Adopt Resolution No. 2025-019 approving the Third Amendment to the Chief Executive Officer’s Employment Agreement in substantial form as Attachment B or as presented at the meeting, with non-substantive revisions approved by the Chair and reviewed and approved as to form by General Counsel.
BACKGROUND AND DISCUSSION:
On September 28, 2023, Clean Energy Alliance (CEA) Board of Directors (Board) appointed Gregory Wade as its Chief Executive Officer (CEO) and approved the corresponding Employment Agreement (Agreement). The Agreement was subsequently amended in November 9, 2023 and November 21, 2024 (Amended Agreement).
Section 3(c) of the Agreement provides for annual performance review. c. Annual Performance Review. CEA shall perform an annual performance review of Executive on or before the anniversary date of the Agreement. The Board or a committee of the Board of Directors will review the base compensation, bonuses, and benefits provided to the Executive under this Agreement and may, in their sole discretion, adjust the same subject to approval by a majority of the members of the Board.
On November 21, 2024, CEA Board of Directors performed the annual performance review of Executive and formed a Board subcommittee to review the base compensation, bonuses, and benefits provided to the Executive under the Agreement. The subcommittee is comprised of Vice Chair Christian Garcia and Board Members Kristi Becker and Priya Bhat-Patel.
It was determined that the CEO’s performance merited a salary adjustment. It is also recommended that the agreement be extended until January 31, 2029.
April 24, 2025
3rd Amendment to CEO Employment Agreement
The attached resolution and proposed Third Amendment to the Employment Agreement provides for the amended language to Section 2 to extend the Effective Period to a total of five (5) years through January 31, 2029 and Section 3(a) to reflect a five percent (5%) salary adjustment for the Board’s consideration.
FISCAL IMPACT:
The base salary of $325,000 will be adjusted to $341,250 effective February 1, 2025. The salary increase contemplated under the proposed Third Amendment to the Employment Agreement is within the budgeted amounts in Fiscal Year 2024-25.
ATTACHMENTS:
A. Resolution No. 2025-019
B. Third Amendment to CEO Employment Agreement
CLEAN ENERGY ALLIANCE
RESOLUTION NO. 2025-019
A RESOLUTION OF THE CLEAN ENERGY ALLIANCE BOARD OF DIRECTORS APPROVING THE SECOND AMENDMENT TIO THE CHIEF EXECUTIVE OFFICER’S
EMPLOYMENT AGREEMENT
WHEREAS, the Board of Directors of the Clean Energy Alliance (“CEA”) (“Board”) appointed the Chief Executive Officer (“CEO”) and approved the corresponding employment agreement on September 28, 2023; and
WHEREAS, the Section 3(c) provides for an Annual Performance Review of the Executive on or before February 1st the anniversary date of the Agreement; and WHEREAS, CEA Board of Directors performed the annual performance review of Executive on November 21, 2024 and formed a Board subcommittee to review the base compensation, bonuses, and benefits provided to the Executive under the Agreement; and WHEREAS, it is determined that a contract extension and an adjustment to the base salary is warranted based on Executive’s performance.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Clean Energy Alliance, as follows:
Section 1. The Third Amendment to the Chief Executive Officer’s Employment Agreement (attached as Exhibit A) is approved.
Section 2. The Board Chair is authorized to execute the Third Amendment to the Employment Agreement in the form reviewed and approved by the General Counsel.
The foregoing Resolution was passed and adopted this 24th day of April, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
______________________________________
_ Katie Melendez, Board Chair
ATTEST:
______________________________
Kaylin McCauley, Clerk to the Board
Attachment A
THIRD AMENDMENT TO CHIEF EXECUTIVE OFFICER EMPLOYMENT
AGREEMENT
This THIRD AMENDMENT TO CHIEF EXECUTIVE OFFICER EMPLOYMENT AGREEMENT (“Third Amendment”) is entered on _______, 2025, and is an amendment to the CHIEF EXECUTIVE OFFICER EMPLOYMENT AGREEMENT (“Agreement”) that was made by and between CLEAN ENERGY ALLIANCE, a California joint powers authority (“CEA”), and Gregory Wade, an individual (“Executive”) that was dated and effective as of December 1, 2023, subsequently amended on November 9, 2023 (“First Amendment”) and November 21, 2024 (“Second Amendment”) (together referred as “Amended Agreement”).
RECITALS
A. Whereas, the Section 3(c) provides for an Annual Performance Review of the Executive on or before February 1st the anniversary date of the Agreement; and B. Whereas, CEA Board of Directors performed the annual performance review of Executive on November 21, 2024 and formed a Board subcommittee to review the base compensation, bonuses, and benefits provided to the Executive under the Agreement; and
C. Whereas, it is determined that an adjustment to base salary and agreement extension are warranted based on Executive’s performance; and D. Whereas, the CEA and Executive intend that all terms of the Amended Agreement shall remain effective to the extent they are not amended by this Third Amendment.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Parties agree as follows:
SECTION 2. Section 2 “Effective Period” is hereby extended through January 31, 2029.
SECTION 3. Section 3(a) is hereby amended to read as follows:
Base Salary. Effective February 1, 2025, Executive shall receive a base annual salary of Three Hundred Forty-One Thousand and Two Hundred Fifty Dollars ($341,250) payable on a pro-rata basis in accordance with CEA’s payroll practices and less all applicable payroll taxes and withholdings.
Except as herein amended, the Agreement, First Amendment and Second Amendment shall remain in full force and effect.
IN WITNESS WHEREOF, CEA and Executive have executed this Agreement on the date written below:
Attachment B
2 CLEAN ENERGY ALLIANCE: EXECUTIVE:
By: ________________________ By: ______________________ Katie Melendez, Chair Gregory Wade
CEA Board of Directors
APPROVED AS TO FORM:
By: ________________________________
Johanna N. Canlas, General Counsel