MINUTES
REGULAR MEETING of the Energy Planning & Resources Committee of the Clean Power Alliance of Southern California
Wednesday, January 26, 2022, 12:15 p.m.
Pursuant to the Proclamation of the State of Emergency by Governor Newsom on March 4, 2020, AB 361, and enacting Resolutions, and as a response to mitigating the spread of COVID19, the Energy Planning & Resources Committee conducted this meeting remotely.
CALL TO ORDER & ROLL CALL
Chair Parkhurst called the meeting to order at 12:15 p.m. and Interim Clerk of the Board, Raynette Tom, conducted roll call.
ROLL CALL
Alhambra Jeffrey Maloney Committee Member Remote
Carson Reata Kulcsar Committee Member Remote
Culver City Daniel Lee Committee Member Remote
Oxnard Kathleen Mallory Committee Member Remote
Sierra Madre Robert Parkhurst Chair Remote
Thousand Oaks Helen Cox Committee Member Remote
Ventura County Carmen Ramirez Committee Member Remote
All votes are unanimous, unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from December 16, 2021 Special Energy Committee Meeting
2. Receive and File November and December 2021 Risk Management Team Report Ted Bardacke, CEO, provided a brief review of Item 2, noting that due to the default changes, CPA must revise its load forecast reflecting new positions driving deviations in the RMT report.
Motion: Committee Member Maloney, Alhambra
Second: Committee Member Cox, Thousand Oaks
Vote: The consent agenda was approved by a roll call vote with an abstention by Committee Member Ramirez.
REGULAR AGENDA
3. Approve Shortlist Projects as Recommended by the Review Team for the 2021 Mid-Term Reliability RFO
Natasha Keefer, Vice President, Power Supply, presented the recommended shortlist and waitlist for the 2021 Midterm Reliability Request for Offers (RFO). In Clean Power Alliance Energy Planning & Resources Committee Page 2 of 2 January 26, 2022
2021, the California Public Utilities Commission (CPUC) issued a decision requiring all Load Serving Entities (LSEs) to undertake new procurement to address mid-term reliability; this decision ordered CPA to procure a total of 679 MW of new reliable capacity between 2023-2026, of which a portion must be Long-Lead Time (LLT) resources. On September 29th, 2021, CPA launched its 2021 Midterm Reliability RFOs to comply with the order, and in January, the RFO Review Team developed a recommended shortlist and waitlist. Ms. Keefer provided an overview of the process by which CPA runs the long term RFOs, from launch to Board approval. Ms. Keefer discussed “incremental” capacity and described CPA’s remaining procurement need for compliance in three different product types: (1) “conventional” renewables plus storage/standalone storage; (2) baseload renewables; and, (3) a long-duration storage with 8+ hours of duration.
Ms. Keefer provided a summary of the RFO project eligibility by type and the six criteria used for evaluating projects. Ms. Keefer provided an overview of the conforming offers. Offers were valued and rated based on their Net Present Value (NPV) using a comparison of benefits and costs of the project. The RFO Review Team recommends a shortlisting approach that ranges from shortlisting a portion of CPA’s compliance requirement to up to 2-3x its procurement need in different product types. The Review Team also recommends using a targeted waitlist to ensure enough projects are approved, accounting for shortlisting and negotiation fallout. Ms. Keefer discussed key considerations by product type and reviewed the recommended shortlist/waitlist. Five projects are recommended for the shortlist and five projects for waitlist. The shortlist includes one local project, one out of state project, and two projects located in DACs. All projects rank high on workforce development and there are no low environmental stewardship projects. Ms. Keefer concluded with an overview of the RFO schedule and next steps.
Chair Parkhurst asked about plans to promote the development of baseload and long-term storage resources. Ms. Keefer noted that there are no immediate plans, however, developers are aware of the procurement mandate and may need additional time to overcome development hurdles before they begin bidding to LSEs. In response to questions from the Committee, staff clarified that the mandate makes no mention of a recalculation of procurement requirements should CPA expand; explained that waitlisted projects will be moved to the shortlist if other projects decide not to move forward with CPA; shortlisted projects are given a two-week window to enter into exclusivity with CPA. Waitlisted projects are kept open until the conclusion of PPA negotiations and approval from the Board, with the understanding that those waitlisted projects are under no obligation to CPA.
Chair Parkhurst thanked staff and Committee Member Ramirez and Committee Member Kulcsar for their participation in the RFO Review Team.
Motion: Committee Member Ramirez, Ventura County
Second: Committee Member Kulcsar, Carson
Vote: The consent agenda was approved by a roll call vote.
COMMITTEE MEMBER COMMENTS
Committee Member Ramirez commented on the efforts made to move towards renewable energy.
ADJOURN
Chair Parkhurst adjourned the meeting at 1:22 p.m.