Board of Directors Meeting
July 31, 2025
Item 7: CEO Report
2 CEA Enrollment Stats
3 Member City Eligible
Accounts
Clean Impact –
50% Renewable
Clean Impact Plus
- 75% Carbon
Free
Green Impact –
100% Renewable
Participation
Rate
Carlsbad 54,883 177 49,520 233 91%
Del Mar 3,019 11 2,750 73 94%
Escondido 57,024 148 53,271 71 94%
Oceanside 74,023 199 68,788 101 93%
San Marcos 36,994 110 34,394 75 93%
Solana Beach 7,749 14 6,892 161 91%
Vista 39,435 82 36,949 324 95%
TOTAL 272,910 738 252,318 1,025 93%
Item 7
CEA serves a total of 254,081 customer accounts across its seven member agencies Completed Community Events
4 Upcoming Community Events
Item 7
Solar Plus & Battery Bonus Update
5 Member City Solar Plus Solar Plus Connect Battery Bonus Battery Bonus Connect Status Active Complete Active Complete Active Complete Active Complete Carlsbad 4 1 2 0 0 0 9 0
Del Mar 0 0 1 0 0 0 1 0
Escondido 13 0 14 0 0 0 12 0
Oceanside 2 1 5 0 0 0 16 0
San Marcos 0 1 1 0 0 0 7 0
Solana Beach 1 0 0 0 0 0 1 0
Vista 2 1 2 0 0 0 12 0
TOTAL 22 4 25 0 0 0 58 0
Data as of 7/24/25
Item 7
PeakSmart Savers Update
6 Member City PeakSmart Savers Signups
Carlsbad 0
Del Mar 2
Escondido 3
Oceanside 5
San Marcos 0
Solana Beach 0
Vista 5
TOTAL 15
Data as of 7/25/2025
Item 7
Questions/Discussion – Item 7
7 Item 8: Amending Clean Energy Alliance
Rate Schedule to Update the Wholesale
Market Access Tariff Rate Effective August
1, 2025
8 Recommendation
• Conduct Public Hearing
• Adopt Resolution No. 2025-035 Amending the Clean Energy Alliance Rate Schedule to Update the Wholesale Market Access Tariff Rate Effective August 1, 2025
9 Item 8
Background
• October 26, 2023 – Board approved the Wholesale Market Access Tariff (WMAT) Terms & Conditions
• New rate program for large commercial customers whose annual energy usage exceeds 150 GWh
• October 31, 2024 – Board approved initial WMAT Rate
• Rate based on projected revenues and expenditures
• Set to ensure sufficient revenue generated to recover costs 10 Item 8
Recommended Amendment
• Increase rate from $0.10150/kWh to $0.11350/kWh
• Rate change ensures revenue meets current projected
expenditures of the WMAT program
• Proposed effective date of August 1, 2025
• Public Hearing notices were published July 19 and 25, 2025 11 Item 8
Questions/Discussion – Item 8
12 Item 9: Regulatory Update
13 Clean Energy Alliance: Regulatory
Update
Jake Schlesinger – Keyes & Fox LLP
July 31, 2025
Item 9
15 Overview
● Application 25-04-014: Application of SDG&E to Withdraw from Regional Energy Efficiency (EE) Program Administration
● Rulemaking 20-05-012: SGIP Comments on Demand Response (DR) Enrollment Requirement
● Rulemaking 25-02-005: Application for Rehearing of Proposed Decision Changing the PCIA methodology
Item 9
A.25-04-014: SDG&E EE Application
● SDG&E seeks Commission approval to discontinue regional EE program administration ● PUC Code Sec. 381.1(e)-(f) provides CCAs the opportunity to elect to administer EE programs ● D.14-01-033, the Commission adopted the following calculation to determine the maximum amount of funding available for a CCA’s ETA annual portfolio:
Total electricity EE NBCs from the CCA’s customers
- (Total electricity EE NBCs from the CCA’s customers
x % of the IOU authorized budget for statewide and regional programs up to 96%) = CCA ETA maximum funding
● SDG&E requests an approximately $300 million reduction in the PPP EE NBC rates to support its reduced EE portfolio
16 Item 9
17 R.20-05-012 SGIP Comments on QDR Req.
● 12/20/23 - D.24-03-071 Commission ordered that SGIP Program Administrators (PAs) ensure SGIP incentive applicants enroll in an approved qualified DR program
● 5/15/25 - CEA AL12-E, TO UPDATE QUALIFIED DEMAND RESPONSE PROGRAM LIST FOR AB 209 SGIP INCENTIVES IN COMPLIANCE WITH D.23-12-005 AND D.24-03-071 ● 7/7/25 - ACR in Rulemaking asks: “Should the Commission remove the DR requirement for all residential low-income customers applying to the Residential Solar and Storage Equity budget?” ● 7/15/25 - Joint CCA Comments, including CEA filed in support ○ An estimated 700 low-income residential customers participating in CCA programs (with an incentive value of approximately $17 million) are stuck in the SGIP queue ○ The Commission should consider exempting all residential customers from the QDR requirement because PG&E and SDG&E customers have no existing IOU or CCAQ QDR Item 9
R.25-05-005 PCIA Methodology Change AFR
● D. 25-06-049 Modified calculation methodology for the RA MPB, but applies changes to 2025 PCIA rates, finding they are not “general rates” ● CalCCA AFR filed on 7/28/25
18 Item 9
QUESTIONS?
Jake Schlesinger
[email protected]
(970) 531-2525
19 Item 9
Questions/Discussion – Item 9
20 Item 10: Approving 10-Year Power
Purchase Agreement (PPA) with IP
Darden III, LLC and Authorizing
Execution of the PPA
21 22
• That the CEA Board adopt Resolution No. 2025-036 approving a 10-Year Power Purchase Agreement (PPA) with IP Darden III, LLC for a new-build co-located project that includes 137.22 MW of photovoltaic solar and 137.22 MW of 4-hour battery storage.
• Authorize the Chief Executive Officer to execute all documents, subject to Transactions Attorney approval.
Item 10
Recommendation
Background
• Long-term agreements for new-build renewable energy projects are critical to meeting CEA’s environmental and compliance goals and provide financial value to CEA by locking in power supply costs.
• To facilitate receipt of these PPA offers, CEA issued a Request for Proposals (RFP) for new-build renewable energy projects – Intersect Power, a national developer with an office in CEA territory (Solana Beach), submitted the Darden project under this RFP.
• Darden is a co-located solar and storage project, with CEA’s 137MW portion of the project expected to generate 404,641 MWh of renewable energy per year. • The substantial size of the project and CEA’s offtake will lock in a meaningful amount of future power supply costs and will contribute materially CEA’s long-term 100% renewable target. 23 Item 10
IP Darden III, LLC Co-located Solar +
Storage Project
24 • Project is located on former agricultural land retired by the State's groundwater sustainability goals and is ideal for solar development • The project will connect into a brand new 500kV switchyard built by Intersect Power and deeded to PG&E, allowing for greater control over cost and schedule
• 10-year contract with project company IP Darden III, LLC, starting in June, 2028, located in Fresno, CA
• 137.22 MW of solar + 137.22 MW of 4-hour battery storage* • CEA benefits from the Project include:
• Hedge on long-term energy prices
• Portfolio Content 1 (PCC1) renewable energy
• Potential for Midterm Reliability (MTR) eligibility
• Resource Adequacy (RA) 4-hour battery capacity
* Note: As the project design is finalized, there may be potential to increase the solar to 139.52MW.
Item 10
IP Darden III, LLC Fire Safety
25 • The project uses lithium-ion phosphate (LFP) technology • IP Darden III, LLC has worked to ensure that the risk of fire to the storage units and the surrounding area is heavily mitigated. • Project will be fully compliant with NFPA 855 requirements. • Storage units will be housed in containerized units to localize any potential fire and prevent its spread.
• Site is equipped with a local fire command center to protect the surrounding environment.
Item 10
Questions/Discussion – Item 10
26 Item 11: Approve Execution of 10-Year
Energy Storage Resource Adequacy
Agreement with Circle City Energy Storage
LLC
27 28
• That the CEA Board adopt Resolution No. 2025-037 approving a 10-Year Energy Storage and Resource Adequacy Agreement (ESRAA) with Circle City Energy Storage LLC for a 28MW 4- hour battery.
• Authorize the Chief Executive Officer to execute all documents, subject to Transactions Attorney approval.
Item 11
Recommendation
Background
29 • CPUC Decisions 21-06-035 (Mid-Term Reliability Requirement) & 23-02- 040 (Supplemental Mid-Term Reliability Procurement)
• Procurement of additional resources to ensure sufficient resources are available for reliability as older non-renewable resources are retired • Incremental requirements for each LSE for new capacity online on or before each year from 2023 through 2028
• Available for minimum 10 years
• Non-fossil fueled (for generation resources)
• Goal to increase resource diversity with clean firm resources such as geothermal and long-duration storage, in addition to battery storage Item 11
Circle City Energy Storage LLC Battery
Project
30 • Engie, a developer who has built renewable energy and battery projects across the US and abroad, submitted
battery storage offers in response to CEA and CalChoice’s joint solicitation in January 2024
• The project is sited on previously-developed, industrial zoned land, which means the project will not impact any federal, state, or local conservation designations, nor will it impact any protected areas, habitats, or urbanized open space.
• Engie’s Circle City project is located in the greater LA Basin area between Anaheim and Riverside, in an industrial zoned area of Corona
• 10-year project, starting in June, 2026 in Corona, CA • 28MW of 4-hour battery storage
• The battery capacity will aid CEA in meeting its MTR
requirements as set by the CPUC
• CEA’s contract is for the RA capacity of the project, which CEA will use to meet its RA obligations
Item 11
Questions/Discussion – Item 11
31 32
Item 12: Approving a Default Power
Supply Change Policy
Recommendation
That the Clean Energy Alliance (CEA) Board (Board) adopt Resolution No. 2025-038 Approving a Member Agency Default Power Supply Change Policy
33 Item 12
34 Item 12
Background
• CEA’s Joint Powers Agreement (JPA) allows member agencies to select their default power supply from CEA’s three power supply options:
• Clean Impact – minimum 50% renewable energy increasing to 100% by 2035
• Clean Impact Plus – minimum 50% renewable energy and 75% carbon free energy
• Green Impact – 100% renewable energy
• All cities have so far have selected Clean Impact Plus as their default power supply
35 Item 12
Background
• Member Agencies may choose to change the default power supply for their community to meet CAP or other goals
• Staff has developed a Default Power Supply Policy (Policy) that:
• Ensures CEA has procured enough energy and/or has adjusted its portfolio in the event a Member Agency chooses to modify its default power supply, and
• Provides sufficient time for CEA to evaluate any rate implications of such actions
36 Item 12
Discussion
• The Policy sets forth a 20-month process with the desired default power supply change effective in November of the year following initiation of a default power supply change
• The steps ensure customers receive sufficient notification of the default power supply change
• The Policy ensures CEA has prepared appropriately to serve customers on the new power supply product.
• Given the steps/time involved, the Policy establishes a maximum frequency of 1 change every 2 years for a Member Agency 37 Item 12
Advance
Notice
provided
to CEA
March 1
June 1
Report of fiscal impact
procurement impact and
rate impact prepared by
CEA and provided to
Member Agency
City Council adoption
of Resolution
approving change in
default power supply
October 1
Year 0 – Year Prior to the Date of Default Change
38 Item 12
Year 0 through 1 Steps
CEA begins procurement; regulatory compliance and
reporting updates; coordination with Data Manager
and Customer Service Center; customer
communications; Rate adoption (if applicable)
October of Year 0 through October of Year 1
39 Item 12
Year 1 Steps
Customer Notice #1
No later than
September
October
Customer
Notice #2
Default Power
Supply
changes
November 1
Questions/Discussion – Item 12
40 Item 13: Changing the Venue for Clean Energy
Alliance (CEA) Board and Community Advisory
Committee (CAC) Meetings from September 2025
through June 2026 and Discuss Time of Board
Meetings
41 42
Item 13
Recommendation
That the Clean Energy Alliance (CEA) Board (Board) adopt Resolution No. 2025-039 changing the Place/Venue for Clean Energy Alliance (CEA) Board and Community Advisory Committee (CAC) Meetings for September 2025 – June 2026 to the Leucadia Wastewater District Board Meeting Room and provide additional direction regarding the time and place of the CEA Board Meeting as needed
43 Item 13
Background
• CEA Board has over the years expressed an interest in periodic rotation of the Board/CAC meeting location within CEA’s service territory to accommodate travel times and convenience for all those who attend these meetings
• Staff has been considering two potential options for these meeting locations:
• Board Meeting Room of the Leucadia Wastewater District at 1960 La Costa Avenue in Carlsbad
• City of Vista City Council Chambers at 200 Civic Center Drive 44 Item 13
Background
• Leucadia Wastewater District has offered their location at no cost and on the Thursday afternoon meetings times of both the Board and the CAC
• The location has plenty of free parking and is equipped with updated teleconference technology as well as a Board Closed Session Room • They have offered use of other rooms if needed as well • On July 24, 2025, after considering our request, Vista staff advised that they could not accommodate our needed meeting times/dates 45 Item 13
Leucadia Wastewater District
46 Item 13
Leucadia Wastewater District
47 Item 13
Leucadia Wastewater District
48 Item 13
Leucadia Wastewater District
49 Item 13
Leucadia Wastewater District
50 Item 13
Leucadia Wastewater District
51 Item 13
Leucadia Wastewater District
Given its availability at no charge, readily available and free parking, staff recommends moving to this location beginning with the September 2025 Board Meeting
Questions/Discussion – Item 13
52