Members of the public can address the Board on items on the agenda at the time the item is being addressed or during Public Comments for topics that are not listed on the agenda.
Speakers are limited to three (3) minutes each. Please submit a Speaker’s Slip to the Board Clerk prior to the announcement of the item to be heard. In conformance with the Brown Act, no Board action can occur on items presented during Public Comment.
1 Board of Directors Meeting
July 30, 2026
Members of the public can address the Board on items on the agenda at the time the item is being addressed or during Public Comments for topics that are not listed on the agenda.
Speakers are limited to three (3) minutes each. Please submit a Speaker’s Slip to the Board Clerk prior to the announcement of the item to be heard. In conformance with the Brown Act, no Board action can occur on items presented during Public Comment.
3 Item 5: Clean Energy Alliance
Chief Executive Officer
Operational and Administrative
Report
4 CEA Enrollment Stats
5 Member City Eligible
Accounts
Clean Impact
50% Renewable
Clean Impact Plus
55% Renewable/
75% Carbon Free
Green Impact
100% Renewable
Participation
Rate
Carlsbad 55,367 219 49,486 660 91%
Del Mar 3,032 10 2,762 72 94%
Escondido 57,347 187 53,530 68 94%
Oceanside 74,875 267 69,438 105 93%
San Marcos 38,212 140 35,479 71 93%
Solana Beach 8,012 19 7,164 165 92%
Vista 39,582 113 36,992 344 94%
TOTAL 276,427 955 254,851 1,485 93%
CEA serves a total of 257,291 customer accounts across its seven member agencies Metrics as of July 13, 2026.
Item 5
Completed Community Events
6 Item 5
Date Description City
July 17, 2026 Chavez Community Center Food Distribution Oceanside July 24, 2026 Crown Heights Community Center Food
Distribution Oceanside
July 25, 2026 Carlsbad Food and Wine Festival Carlsbad
July 29, 2026 State of the City San Marcos
Upcoming Community Events
7 Item 5
Date Description City
August 4, 2026 National Night Out Oceanside
August 5, 2026 Escondido City Council Presentation Escondido August 7, 2026 Libby Lake Community Center Food
Distribution Oceanside
August 8, 2026 Flapjacks for Backpacks San Marcos
August 11, 2026 Vista City Council Presentation Vista
August 20, 2026 California Hispanic Chambers of
Commerce's Procurement Matchmaking Oakland
September 19, 2026 NCAAWA Gentlemen’s Gourmet Oceanside September 30, 2026 CPUC Small & Diverse Business Expo San Francisco October 1, 2026 CPUC GO 156 Supplier Diversity En Banc San Francisco Rate Relief Credit Opt-Downs
Member City Commercial Residential Total
Carlsbad 54 54
Del Mar 3 3
Escondido 1 34 35
Oceanside 1 67 68
San Marcos 1 23 24
Solana Beach 2 2
Vista 1 29 30
TOTAL 4 212 216
8 Metrics as of July 10, 2026.
Item 5
CEA Staffing Update
9 Item 5
• Actively recruiting for two (2) positions authorized by the Board as part of the Fiscal Year (FY) 2026/27 Budget:
• Rates Specialist or Analyst
• Marketing Specialist or Analyst
• Positions are open until filled with first review deadline of August 14, 2026
Questions/Discussion – Item 5
10 Item 6: Programs Report
11 12
Solar Plus and Battery Bonus Update
Member
City Solar Plus Solar Plus Connect Battery Bonus Battery Bonus Connect Status Active Complete Active Complete Active Complete Active Complete Carlsbad 2 3 3 0 0 3 3 7
Del Mar 0 0 1 0 0 0 1 0
Escondido 5 5 13 0 0 0 3 9
Oceanside 3 5 6 0 0 0 3 11
San Marcos 4 4 3 0 0 1 2 6
Solana
Beach
0 1 1 0 0 0 1 1
Vista 4 2 7 0 2 1 3 10
TOTAL 18 20 34 0 2 5 16 44
MoM
CHANGE
-12 +8 0 0 0 +1 -2 +2
Metrics as of July 1, 2026.
Item 6
MoM refers to Month-over-Month Change.
Connect Programs SGIP Funding
Member City Solar Plus Connect Battery Bonus
Connect
Carlsbad $85,120 $178,200
Del Mar $26,032 $0
Escondido $398,748 $237,600
Oceanside $180,315 $246,599
San Marcos $89,877 $158,400
Solana Beach $25,426 $39,600
Vista $164,972 $271,596
TOTAL $970,490 $1,131,996
13 Metrics as of July 1, 2026.
Item 6
PeakSmart Savers Participants
Member City PeakSmart Savers
Participants
Carlsbad 13
Del Mar 1
Escondido 9
Oceanside 17
San Marcos 3
Solana Beach 0
Vista 15
TOTAL 58
MoM Change +3
14 Metrics as of July 10, 2026.
Item 6
MoM refers to Month-over-Month Change.
Equitable Building Decarbonization
15 Item 6
• Food distribution outreach
roll-out in Oceanside at
Chavez and Crown Heights
Community Centers
• Connected with 136 people
• Identifying events in Vista,
San Marcos, and Escondido
• Continuing to support with
single-family and multi-family enrollments
Programs Specialist, Natalie Aguilar, with two Oceanside community members discussing the EBD Program.
SDREN
16 Item 6
• The San Diego Regional Energy Network (SDREN) is a regional energy-efficiency network administered by San Diego
Community Power in partnership with the County of San Diego. • Approved by the California Public Utilities Commission (CPUC) on August 1, 2024.
• As of July 10, 2026, SDREN has launched or is preparing to launch programs in the following categories: Residential, Workforce Development, Commercial, Public Agencies, Codes & Standards, and Tribal Governments.
• More information on current programs can be found on the SDREN website at sdren.org.
Questions/Discussion – Item 6
17 Item 7: Risk Oversight Committee
Report
18 ROC Discussion Topics
19 • Market Update
• Current Portfolio Planning and Position
Management
• JPM/POLR Covenants
• Energy Prepayment Transaction Update
• Anticipated Q3/Q4 2026 ROC Agenda Topics
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Jan-27 Feb-27 Mar-27 Apr-27 May-27 Jun-27 $/MWh
Southern California Energy Prices (SP 15)
Jul-25 Sep-25 Dec-25 Feb-26 Jun-26
20 Energy Market Prices
• Slight downward trend in system
energy prices
• Prices for the next 12-month period
are approximately 30% lower on
average compared to one year ago,
following a spike in 2022-2024
• Renewable and carbon-free pricing
has followed a similar trend, with
current prices at ~10-20% of 2024
highs
• RA trends were similar, with the
tight Q3 months currently 10-20% of
2024 highs
Portfolio Planning and Position
Management
21 22
Risk Mitigation Strategy and Current Open Positions
Strategy
• CEA’s Energy Risk Management Policy requires us to be hedged for at least 90% of expected load as of the month ahead of delivery. Credit line requirements add similar targets for t+1 and t+2 years; CEA is currently purchasing energy for FY27, FY28, FY29, and FY30. • CEA’s current strategy for various power supply products – wholesale energy, renewable energy, Resource Adequacy (RA) – involves a combination of entering into a mix of long-term and short-term agreements with different risk profiles. CEA aims to enter into contracts to meet all of these needs gradually over time, avoiding timing or mistiming the market with only one or two large purchases. 23 Risk Mitigation Strategy and Current Open Positions
Current Positions
• CEA is compliant with hedge requirements for its credit line and ERMP. • CEA has limited or no remaining 2026 renewable energy, carbon free energy, and RA needs. Carbon-free requirements could drop off after 2028, pending decisions on future product offering content for Clean Impact Plus. • Initial short-term purchases have been made across all categories for 2027 and 2028 to begin closing open positions.
• Contracts are in place for all MTR needs through 2028, and pending Board approval of LDES contract today, 2030-2032 procurement order requirements are likely also fully contracted (pending final confirmation of counting rules). • PPAs and ESSAs (Deer Creek, Darden, Circle City, and others) will be coming online gradually between now and mid-2028 – these contracts are already reflected as anticipated supply to meet future needs.
Credit Line & Provider of Last
Resort (POLR) Covenants
24 25
Covenant Compliance Metrics and Forecast
• JP Morgan
• Met covenants as of March 31, 2026 and expect to meet for all quarters going forward
• $40 million credit line extends through February 2029 (currently, not being utilized)
• Provider of Last Resort (POLR) - CPUC metrics
• Meeting all covenants
• DSCR covenant of 1.0 is lower than JP Morgan covenant Note: Expect to meet all covenants for the foreseeable future 26 Energy Prepayment Transaction
Update
Prepayment Transaction – History
27 February 24, 2026
Issued RFP for
Municipal Financial
Advisor Services
April 30, 2026
PFM presented Energy
Prepayment Discussion
and Board approved
PSA with PFM Financial
Advisors LLC
May 1, 2026
Executed contract
with PFM Financial
Advisors LLC
May 28, 2026
Issued RFP for
Underwriter and
Legal Services (Bond,
Tax, and/or
Disclosure Counsel)
July 22-24, 2026
Interview Underwriter
candidates and make
selection
July 30, 2026
Requesting Board
approval of PSA with
Chapman and Cutler LLP
Prepayment Transaction – Request for
Proposals (RFP)
28 • 2 RFPs issued May 28, 2026 • Responses due June 17, 2026 Disclosure & Bond/Tax Counsel
5 responses received
Selected Chapman & Cutler LLP
Disclosure Counsel
Selected Orrick via CCCFA
Bond/Tax Counsel
Underwriter (Counterparty)
4 responses received
Interviewed final two, July 22–23
Selected Goldman Sachs
Prepay Counterparty
Prepayment Transaction – Next Steps
29 • Execute agreement with Chapman & Cutler LLP for Disclosure Counsel
• Meet with complete “transaction team” and establish timeline • (August – September) Structure the prepay transaction and Join CCCFA
• (September – October) Prepare “Form of” Deal Documents • (October – November) Confirm PPA Assignments, Finalize Deal Documents, Engage Ratings Agency
• (November – December) Finalize prepayment energy transaction Anticipated Q3/Q4 ROC Agenda
Topics
30 31
Q3/Q4 ROC Agenda Special Topics
• At its September and/or December ROC meetings, the
following topics are likely to be added to the standing agenda:
• Update on prepay bond work
• Review of Energy Risk Management Policy
• Review of first months of Deer Creek PPA performance
Questions/Discussion – Item 7
32 Item 8: Amending Clean Energy
Alliance Rate Schedule to Update
the Wholesale Market Access Tariff
Rate Effective August 1, 2026
33 34
Item 8
Wholesale Market Access Tariff (WMAT) Rate
Recommendation:
That the CEA Board:
1. Conduct the Public Hearing: Open the Public Hearing, Receive Public Testimony, Close the Public Hearing.
2. Approve Resolution No. 2026-037 Amending Clean Energy Alliance Rate Schedule to update the Wholesale Market
Access Tariff Rate Effective August 1, 2026.
35 Item 8
Wholesale Market Access Tariff (WMAT) Rate
Background:
• Available to Non-Residential CEA Customers with annual load greater than 150 GWh
• Currently includes one account
• Separate portfolio for the WMAT load
• WMAT Agreement rate setting: Total Energy Costs/Projected annual energy usage = per kWh energy component
• Rate intended to recover the total cost of the portfolio, including CEA administrative costs
36 Item 8
Wholesale Market Access Tariff (WMAT) Rate
Board Action / Effective Date Updated WMAT Rate
Wholesale Market Access Tariff Program Terms and Conditions (approved October 26, 2023)
N/A established
calculation methodology
Resolution No. 2024-018 (adopted October 31, 2024)
Effective January 1, 2025 $0.10150 / kWh
Resolution No. 2025-035 (adopted July 31, 2025)
Effective August 1, 2025 $0.11350 / kWh
Resolution No. 2025-045 (adopted November 20, 2025)
Effective January 1, 2026 $0.11759 / kWh
Resolution No. 2026-037 (recommended)
Effective August 1, 2026 $0.10000 / kWh
Questions/Discussion – Item 8
37 Item 9: Regulatory Update
38 Clean Energy Alliance: Regulatory Update
Jake Schlesinger – Keyes & Fox LLP
July 30, 2026
Item 9
Overview
● Docket Nos. A.25-04-014/R.25-04-010: EE Update
● Docket No. R.25-10003: RA update
● Docket No. A.26-06-001: 2025 ERRA Compliance
Item 9
Docket Nos. A.25-04-014/R.25-04-010: SD EE Update
● A.25-04-014 – SDG&E Application to Withdraw as EE PA
○ Fully briefed as of July 15, 2026
○ Waiting on a PD
● R.25-0410 - EE Rulemaking
○ Staff Proposal to Modify Budget Formula for Community Choice Aggregators to Elect to Administer Energy Efficiency Funds ○ SD CCA Comments filed on July 1, 2026
Item 9
Docket No. R.25-10003: RA Update
D.26-07-008:
○ The CPUC’s July 2026 RA decision, D.26-07-008, changed key contract rules for new CAISO capacity products created through Day-Ahead Market Enhancements (DAME) and Extended Day-Ahead Market (EDAM).
○ For future RA contracts, the decision requires $0 bidding for Reliability Capacity (RC) and generally requires the LSE to retain RC and most Imbalance Reserves (IR) revenues.
○ For CEA, the main issue is RA fungibility: older upstream contracts may not be easy to resell if they do not include the required bidding and revenue terms.
Item 9
Docket No. A.26-06-001: 2025 SDG&E ERRA Compliance
● June 1, 2026: SDG&E files annual Application for approval of its compliance of its ERRA and other related matters
● Scoping Memo:
○ Whether SDG&E, during the record period, prudently administered and managed its own generation resources, which includes the management of outages and the associated fuel costs, in compliance with all applicable rules, regulations, and Commission decisions, including but not limited to Standard of Conduct (SOC) 4.
○ Whether SDG&E, during the record period, administered resource adequacy procurement and sales consistent with its Bundled Procurement Plan (BPP).
Item 9
QUESTIONS?
Jake Schlesinger
[email protected]
(970) 531-2525
Item 9
Questions/Discussion – Item 9
45 Item 10: Awarding and Approval of
25-Year Energy Storage Service
Agreement with GEM A-CAES LLC
and Authorizing Execution of the
ESSA
46 47
• That the CEA Board adopt Resolution No. 2026-038
awarding and approving a 25-Year Energy Storage Service Agreement (ESSA) with GEM A-CAES LLC for CEA’s 60MW
portion of an advanced compressed air energy storage
facility.
• Authorize the Chief Executive Officer to execute the ESSA.
Item 10
Recommendation
Background
• To ensure sufficient capacity is available as older resources retire, the CPUC periodically mandates Load Serving Entities (LSEs) to procure new resources:
• CPUC Decision 21-06-035, “Mid-Term Reliability”, or “MTR” • CPUC Decision 23-02-040, “Supplemental Mid-Term Reliability” • NEW: CPUC Decision 26-02-057 – mandates statewide procurement of 6,000 MW of new clean energy and storage net qualifying capacity (NQC) between 2030 and 2032
• 25% must be from Clean Firm Resources (non-weather-dependent, zero-emissions, 80%+ capacity factors) or Long Duration Energy Storage (LDES) • CEA has fulfilled its MTR and Supplementary MTR requirements and expects to be compliant with the recent procurement order’s 75% generic capacity requirement; the Clean Firm / LDES sub-category requirement remains to be contracted
48 Item 10
Project Selection – Willow Rock
Energy Storage Center
Hydrostor Inc. (through their subsidiary GEM A-CAES) proposed a 60MW slice of their Willow Rock project into CEA’s March 2026 RFP
• 8-hour advanced compressed air energy storage (A-CAES), qualifies for the LDES category of CPUC D.26-02-057
• Competitively priced
• Permitting is complete, LGIA signed, FCDS secured
• Conditional Loan Guarantee from the DOE to support project financing • Expected to close financing by the end of 2026
• Will use Project Labor Agreement for construction
• With CEA’s offtake agreement, the project will be nearing fully contracted 49 Willow Rock Energy Storage
Center, GEM A-CAES LLC
50 • Developer: GEM A-CAES LLC, a
subsidiary of Hydrostor Inc.
• Technology: 8-hour advanced
compressed air energy storage (A-CAES)
• Size: 500MW /4,000 MWh • Contract Capacity: 60MW / 480 MWh • Location: Kern County, CA • Guaranteed Commercial Operation Date:
6/1/2031
• Term: 25 years • Interconnection: The project will connect via a brand new 230kV gen-tie line that
connects at the SCE Whirlwind
Substation
51 Energy Storage Service Agreement
(ESSA) with GEM A-CAES
52 • Resource Adequacy + Top-Bottom 4 Agreement (“RA+TB4”) • Products: Resource Adequacy (RA) capacity, energy settlement value
• Benefits from the Project include:
• Meets CEA’s procurement order requirements for LDES
• Resource Adequacy 8-hour energy storage capacity
• Hedge on long-term energy price volatility
• Energy storage provides grid reliability, shifts solar generation to peak demand hours, shifts reliance away from peaker plants
• Investment in innovative non-fossil fuel technology
Item 10
Questions/Discussion – Item 10
53 Item 11: Legislative Update from
Staff
54 Legislative Affairs Update
• The Legislature is entering the final phase of the 2026 session, with major budget and energy policy decisions
expected in August
• Overview:
• Sacramento Update
• State Budget Highlights
• CEA Priority Legislation
• Key Energy Policy Trends
• Looking Ahead
• Emerging Policy Issue: Diablo Canyon
55 Item 11
Sacramento Update
• June was dominated by budget negotiations and November ballot discussions
• Policy committee work is largely complete
• Fiscal bills now face Appropriations Committee review • The Legislature returns August 3 and adjourns August 31 56 Item 11
2026 State Budget
• Budget Themes
• Structural deficit remains, but higher tax revenues delayed major cuts
• New taxes approved, including sales tax expansion to software products
• Distributed Energy Backup Assets (DEBA) funds redirected to continue Demand Side Grid Support (DSGS) program funding • $10 million appropriated for geothermal exploration
57 Item 11
CEA Priority Legislation
• CalCCA Sponsored Priorities
• AB 1761 (Rogers) Improving Energy Bill Transparency
• Brings transparency to the way charges like the PCIA are calculated • Intended to improve oversight and accountability
• Supported by CEA and CCAs
• Opposed by IOUs
• SB 1138 (Padilla) Hourly Resource Adequacy Trading
• Aligns RA compliance with hourly matching requirements • Improves market flexibility
• Supported by CEA and CCAs
Status: Both bills are awaiting Senate Appropriations review in August 58 Item 11
2026 Energy Policy Trends
• Major Topics Under Consideration
• Data Centers
• New electric rate class structures (AB 2383)
• Preventing cost shifting to other customers (SB 886)
• Power Grid & Reliability
• Transmission planning reforms (AB 2111)
• Microgrids (AB 710)
• Clean Energy Initiatives
• Geothermal development (AB 2369, AB 2234)
• Distributed energy resources (SB 1295)
• Plug-In or "Balcony" solar systems (SB 868)
• Building electrification pilots (AB 2313)
7/30/2026 59
Item 11
Looking Ahead
• August Legislative Calendar
• August 3: Legislature returns from recess
• August 13–14: Appropriations Committee decisions
• August 31: End of session
• Key Takeaways
• Affordability remains the Legislature's primary focus • CEA priority bills remain active
• Regulatory implementation continues on SB 1221
• Significant policy activity expected
60 Item 11
Emerging Policy Issue: Diablo Canyon
Beyond 2030
• Staff is monitoring discussions regarding potential legislation that could extend Diablo Canyon Power Plant (DCPP)
operations beyond 2030
• No legislation has been introduced to date, and the scope and timing of any proposal remain uncertain
• Recent regulatory approvals have increased attention on whether the Legislature may revisit DCPP's future:
• California Coastal Commission certification approval
• NRC license renewal approval
• Any operation beyond 2030 would require action by the California Legislature
61 Item 11
Potential legislation could affect:
• Reliability planning
• State clean energy policy
• Resource procurement requirements
• Long-term capacity and energy markets
• Future Integrated Resource Planning (IRP) options
62 Item 11
CEA Resource Planning Context
• CEA's current resource strategy emphasizes:
• Affordability
• Reliability
• Carbon-free energy
• Resource diversity
• Local community benefits
• CEA is already pursuing:
• Long-duration storage
• Geothermal and other clean firm resources
• Demand-side resources
• Reliability-focused procurement
63 Item 11
Current DCPP Connection
• CEA currently receives an allocation of DCPP's carbon-free attributes for Clean Impact Plus
• Under current law, DCPP cannot be included as a future resource option in IRP portfolios
• A future legislative extension could potentially change how DCPP is considered in long-term resource planning
64 Item 11
Discussion
• Overview Recap
• If DCPP extension legislation is introduced, should CEA staff have flexibility to engage on legislation that advances CEA priorities regarding:
• Affordability
• Reliability
• Carbon-free energy resources
• Staff Considerations
• Continued operation of DCPP appears generally consistent with CEA's existing platform goals relating to reliability, affordability, and carbon-free energy • Given issue significance, seeking Board input regarding future advocacy and engagement
• Staff Recommendation
• Support Staff flexibility to engage on future legislation that aligns with CEA's priorities
65 Item 11
Questions/Discussion – Item 11
66