Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, May 4, 2023
2:00 p.m.
Visit CPA’s YouTube Channel to view a Live Stream of the Meeting *There may be a streaming delay of up to 90 seconds. This is a view-only live stream.
CPA Office
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting at the following locations:
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91301
Ventura County Government Center
Channel Islands Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Whittier City Hall
Admin Conference Room
13230 Penn Street
Whittier, CA 90602
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
JW Marriot Desert Springs
Director 2 Conference Room
74-855 Country Club Drive
Palm Desert, California
Claremont City Yard Building A
Front Conference Room
1616 Monte Vista Ave.
Claremont, CA 91711
PUBLIC COMMENT: Members of the public may submit their comments by one of the following options:
• Email Public Comment: Members of the public are encouraged to submit written comments on any agenda item to [email protected] up to four hours before the meeting. Written public comments will be announced at the meeting and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting. • Provide Public Comment During the Meeting: The General Public Comment item is reserved for persons wishing to address the Board on any Clean Power Alliance-related matters not on today’s agenda. Public comments on matters on today’s Consent Agenda and Regular Agenda shall be heard at the time the matter is called. Comments on items on the Consent Agenda are consolidated into one public comment period. Members of the public who wish to address the Board at CPA’s Office are requested to complete a comment card and provide it to staff. If you are attending from a remote location, please identify yourself to a CPA representative when your item is called. Each speaker is limited to two (2) minutes (in whole-minute increments) per agenda item with a cumulative total of five 5 minutes to be allocated between the General Public Comment, the entire Agenda Page 1
Consent Agenda, or individual items in the Regular Agenda. Please refer to Policy No. 8 – Public Comment for additional information.
NAVIGATING OUR AGENDA PACKETS: The meeting agenda packets are bookmarked PDFs, which display a list of agenda items to the left of the page and allow you to click to view specific items within the packet. If viewing in your browser, click the "document outline" button in the upper left corner of the screen.
If the PDF is downloaded, the bookmark panel (ribbon icon) appears on the left side of the screen.
ACCESSIBILITY: Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least two (2) working days before the meeting at [email protected] or (213) 713- 5995. Notification in advance of the meeting, while not required, will enable us to make reasonable arrangements to ensure accessibility to this meeting and the materials related to it.
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from April 6, 2023, Board of Directors Meeting
2. Approve Appointments to the Community Advisory Committee
3. Authorize the Chief Executive Officer to Execute Task Order No. 5 with Ascend Analytics for 2023 Clean Energy and Reliability RFO Support Services for a Not-to-Exceed Amount of $172,500
4. Authorize CPA Staff to Submit an Extension Request to the California Energy Commission to meet its Load Management Standards Compliance Obligations
5. Approve An Amendment to the Professional Services Agreement with Langan Engineering and Environmental Services, Inc. for Software Development and Information Technology Consulting Services with a Total Not-To-Exceed Amount of $205,000
6. Receive and File Bill Positions Monthly Report
7. Receive and File Community Advisory Committee Monthly Report
CLOSED SESSION
8. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9: 1
Agenda Page 2
REGULAR AGENDA
9. Approve a Rate Setting Approach for Fiscal Year 2023/2024:
a) Set the CPA Product Price Differential Between 100% Green Power and Clean Power to 4% and the Differential Between 100% Green Power and Lean Power to 5%;
b) Select An Option Establishing a Consistent Total Bill Comparison Level for Residential and Small Business Rates Using SCE’s March 1, 2023 Rates:
I. Option 1 – Minimum Reserve Scenario: Target 100% Green Power Rates to Provide a 1% Discount with Clean Power at a 5% Discount and Lean Power at a 6% Discount;
II. Option 2 – Moderate Reserve Scenario: Target 100% Green Power Rates to Provide a 1% Premium with Clean Power at a 3%
Discount and Lean Power at a 4% Discount;
III. Option 3 – Midpoint Reserve Scenario (Recommended by Executive Committee): Target 100% Green Power Rates to
Provide a 3% Premium with Clean Power at a 1% Discount and Lean Power at a 2% Discount;
c) Update Rates for Large Commercial, Pumping and Agriculture, and Streetlighting Customers Rate Classes to Reflect CPA’s Current Cost of Service (COS);
d) Set Total Bill Comparisons for Customers in the Cities of Hermosa Beach, Monrovia, and Santa Paula at the same Total Bill Comparison Levels as Customers of the Current Member Agencies
10. Review Fiscal Year 2023/2024 Budget Priorities
11. Election of Los Angeles County At-Large Position on the Executive Committee
12. Presentation on Summer Reliability
MANAGEMENT REPORT
COMMITTEE CHAIR UPDATES
Director Deborah Klein Lopez, Chair, Legislative & Regulatory Committee Director Susan Santangelo, Chair, Finance Committee
Director Robert Parkhurst, Chair, Energy Planning & Resources Committee
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT REGULAR MEETING ON JUNE 1, 2023
Public Records: Public records that relate to any item on the open session agenda for a regular Board Meeting are available for public inspection. Those records that are distributed less than 72 hours prior to the meeting are available for public inspection at the same time they are distributed to all, or a majority of, the members of the Board. Public records are available for inspection at CPA’s Office at 801 S. Grand Ave., Suite 400, Los Angeles, CA 90017, or online at www.cleanpoweralliance.org/agendas.
Agenda Page 3
Commonly Used Acronyms
BESS Battery Energy Storage System
CAC Community Advisory Committee
CAISO California Independent System Operator
CALCCA California Community Choice Association
CalEVIP California Electric Vehicle Incentive Program
CARB California Air Resources Board
CARE California Alternate Rates for Energy (Low Income Discount Rate) CCA Community Choice Aggregation
CEC California Energy Commission
CPUC California Public Utilities Commission
DA Direct Access (Private Retail Energy Supplier)
DAC Disadvantaged Community (As Defined by Calenviroscreen 3.0) DER Distributed Energy Resources
DR Demand Response
ERMP Energy Risk Management Policy
ERRA Energy Resource Recovery Account (SCE Generation Rate Setting)
ESA Energy Storage Agreement
EVSE Electric Vehicle Supply Equipment (EV Charger)
FERA Family Electric Rate Assistance (Low Income Discount Rate) GHG Greenhouse Gas
IOU Investor Owned Utility
IRP Integrated Resource Plan
JPA Joint Powers Authority
Agenda Page 4
Commonly Used Acronyms
Kwh Kilowatt-Hour (A Measure of Energy Used in A One-Hour Period) Kw Kilowatt = 1,000 Watts (Watt = A Measure of Instantaneous Power) LSE Load Serving Entity
MB Medical Baseline (Discount Rate for Medical Equipment Needs) MW Megawatt = 1,000 Kilowatts
Mwh Megawatt-Hour = 1,000 Kilowatt-Hours
NEM Net Energy Metering (Usually for Customers with Solar) OAT Other Applicable Tariffs
PCIA Power Charge Indifference Adjustment (Can Be Called “Exit Fee”) PCC1 Renewable Energy Generated Inside California
PCC2 Renewable Energy Generated Outside California
PCC3 A REC from A Renewable Resource, Delivered Without Energy PCL Power Content Label
POU Publicly Owned or Municipal Utility
PPA Power Purchase Agreement
PSPS Public Safety Power Shutoff
PV Photovoltaic (Solar) Panels
RA Resource Adequacy
REC Renewable Energy Credit
RPS Renewables Portfolio Standard
T&D Transmission and Distribution
TOU Time Of Use (Used to Refer to Rates that Differ by Time Of Day) WECC Western Electricity Coordinating Council
Agenda Page 5
Board of Directors Item 1
MINUTES
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, April 6, 2023, 2:00 p.m.
Meeting videos are available on CPA’s YouTube Channel.
www.youtube.com/@CPApublicmeetings
Board members participated from the following locations:
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91302
CPA Office
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Whittier City Hall
Admin Conference Room
13230 Penn Street
Whittier, CA 90602
Ventura County Government Center
Channel Islands Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Venture, CA 93009
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
Westlake Village City Hall
Council Office/Conference Room
31200 Oak Crest Drive
Westlake Village, CA 91361
CALL TO ORDER & ROLL CALL
Chair Julian Gold called the meeting to order at 2:00 p.m. and Gabriela Monzon, Clerk of the Board, conducted roll call.
Roll Call
1 Agoura Hills Absent
2 Alhambra Jeff Maloney Director Present
3 Arcadia Michael Cao Director Present
4 Beverly Hills Julian Gold Chair Present
5 Calabasas Ed Albrecht
Michael McConville
Alternate
Alternate Remote
6 Camarillo Susan Santangelo Director Remote
7 Carson Cedric L. Hicks, Sr. Director Present
8 Claremont Corey Calaycay Director Remote
9 Culver City Joe Susca Alternate Remote
10 Downey Absent
Agenda Page 6
Clean Power Alliance Board of Directors Page 2 of 7
April 6, 2023 Minutes
11 Hawaiian Gardens Absent
12 Hawthorne Alex Monteiro Director Present
13 Hermosa Beach Justin Massey Director Present
14 Los Angeles County Lindsey Horvath Vice Chair Present 15 Malibu Absent
16 Manhattan Beach Amy Howorth Director Remote
17 Moorpark Renee Delgado Director Remote
18 Ojai Michelle Ellison Alternate Remote
19 Oxnard Bert Perello Director Remote
20 Paramount Absent
21 Redondo Beach Absent
22 Rolling Hills Estates Debby Stegura Director Remote
23 Santa Monica Gleam Davis Director Present
24 Santa Paula Jenny Crosswhite Director Present
25 Sierra Madre Robert Parkhurst Director Present
26 Simi Valley Rocky Rhodes Director Present
27 South Pasadena Arpy Kasparian Alternate Present
28 Temple City Absent
29 Thousand Oaks Absent
30 City of Ventura Liz Campos Director Remote
31 Ventura County Vianey Lopez Vice Chair Present
32 West Hollywood John Erickson
Chelsea L. Byers
Director
Alternate Present
33 Westlake Village Ned Davis Director Remote
34 Whittier Leon Vasquez Alternate Remote
All votes are unanimous unless otherwise stated.
PLEDGE OF ALLEGIANCE
Vice Chair Lopez led the pledge of allegiance.
GENERAL PUBLIC COMMENT
There was no public comment.
Agenda Page 7
Clean Power Alliance Board of Directors Page 3 of 7
April 6, 2023 Minutes
CONSENT AGENDA
1. Approve Minutes from March 2, 2023, Board of Directors Meeting
2. Approve Fiscal Year 2022/2023 Amended Budget as Reflected Herein
3. Approve Proposed Amendments to the Net Energy Metering Tariff Effective April 1, 2023
4. Receive and File Bill Positions Monthly Report
5. Receive and File Community Advisory Committee Monthly Report Motion: Director Hicks, Carson
Second: Director Parkhurst, Sierra Madre
Vote: The consent agenda was approved by a roll call vote with an abstention by Director Massey.
REGULAR AGENDA
6. Election of One Los Angeles County At-Large Position on the Executive Committee
Gabriela Monzon, Clerk of the Board, provided an oral report on the item. Following an initial vote tally that ended in a tie, the Board of Directors continued this item to the following meeting on May 4, 2023.
7. (a) Adopt Resolution No. 23-04-047 (Attachment 2) Approving Parameters Under which an Energy Prepayment Transaction can be Completed; Authorizing and/or Approving Documents or “Form of” Documents Supporting the Prepay Transaction; and Directing California Community Choice Financing Authority (CCCFA) to Make Payments to Service Providers for Issuance Costs from Prepay Bond Proceeds; (b) Approve Professional Services Agreement with Municipal Capital Markets Group, Inc. with a Not-To-Exceed Amount of $340,000 to be Paid from Bond Proceeds for Municipal Financial Advisory, Guaranteed Investment Contract Broker, and Qualified Independent Representative Services; (c) Approve Legal Services Agreement with Chapman and Cutler, LLP with a Not-To-Exceed Amount of $200,000 to be Paid from Bond Proceeds for Prepay Counsel Services; (d) Approve the Selection of Goldman Sachs as the Underwriter and Prepaid Supplier and the Selection of CCCFA as the Bond Issuer for the Proposed Energy Prepayment Financing and Authorize Staff to Select a Funding Recipient Kate Freeman, Financial Strategy & Initiatives Manager, provided a presentation on the proposed clean energy prepayment transaction. Prepays are well-established financing mechanisms that allow municipal utilities and Community Choice Aggregations (CCAs) to leverage their status as issuers of tax-exempt debt to reduce energy costs. In February 2023, staff and prepay service providers successfully issued $1 billion in energy prepayment bonds with an expected energy cost savings of $66 million over the next eight years. In March 2023, staff began to prepare a second prepay transaction. Ms. Freeman reviewed the proposed Board action items and prepayment transaction diagram. Responding to Director Hicks’ question concerning rising inflation for the second prepay bond, Ms. Freeman indicated that staff estimates the par amount of the second prepay bond transaction will be approximately $900 million; as interest rates rise, the size of the transaction necessary to prepay a fixed selection of Power Purchase Agreements (PPAs) would be expected to grow. The $1.3 billion maximum transaction size allows for sufficient cushion for unforeseen circumstances.
Director Perello asked about the auction process and its transparency, and staff Agenda Page 8
Clean Power Alliance Board of Directors Page 4 of 7
April 6, 2023 Minutes
clarified that Goldman Sachs allocated the $1 billion dollars’ worth of bonds proportionally based on the amount bid by each investor; most of the 34 bidders received a portion of what they were willing to purchase. Ms. Freeman explained that staff had full visibility of the bond order period of subsequent allocation process and received a detailed report itemizing the final allocations as well as Goldman Sachs’ costs and compensation.
Ms. Freeman reviewed the documents requiring approval from the Board. Chair Gold inquired about cost exposure in the unlikely event that CPA indemnifies CCCFA if prepay bonds are not issued; Ms. Freeman noted that CPA would incur about $180,000 in fees in the event that bonds were not issued. Director Parkhurst requested clarification on the White Hills PPA structure. Ms. Freeman explained that a number of CPA’s early contracts are structured as contracts for differences (CfD), where monthly payment amounts between CPA and PPA counterparty are determined based on the difference between market revenues received and contract prices. Because the prepay transaction requires the establishment of a fixed price structure for each PPA assigned into the prepay, staff have established a unique set of terms in the Limited Assignment Agreement in order to convert White Hills to a fixed price structure for the duration of the prepay assignment.
Ms. Freeman reviewed the process and recommendations for the selection of prepay service providers. Responding to Director Albrecht’s question about the bond credit rating, Ms. Freeman noted that Moody’s assigned a Baa1 credit rating to the first prepay bond, which is reflective of the credit of Deutsche Bank, who serve as the Funding Recipient during the initial period of the prepay bond. David McNeil, Chief Financial Officer, added that the rating on the second bond is yet to be determined. Responding to Director Stegura’s question concerning Goldman Sachs’ ownership of J. Aron, Ms. Freeman clarified that setting up an LLC entity for the prepay transaction allows CPA the flexibility to pick a different funding recipient than Goldman Sachs if that would lead to higher savings for CPA. In response to Director Perello’s question about the$200,000 fee to be paid to Chapman & Cutler LLC, Mr. McNeil indicated that the amount is a per bond fee.
Ms. Freeman identified the prepay costs of issuance and service provider fees, all of which are paid for out of bond proceeds in the event of a successful transaction.
Staff conservatively estimates the second prepay transaction will yield an annual savings of $2-6 million on CPA’s energy costs. Directors Crosswhite and Stegura asked about contracts under different state laws; Nancy Whang, General Counsel, indicated that the few contracts which reference New York law were negotiated with a balanced approach, adding that staff is comfortable with the contract language, which balances the risks and requirements of the negotiating parties.
Responding to Director Monteiro’s question regarding CPA’s credit rating, Ted Bardacke, CEO, shared that staff is working with Standard & Poor’s with the goal of obtaining an investment grade credit rating. Director Santangelo shared that the Finance Committee discussed the second prepayment transaction at length and expressed confidence in moving forward with it.
Motion: Vice Chair Horvath, Los Angeles County
Second: Director Monteiro, Hawthorne
Vote: Item 7 was approved by a roll call vote with an abstention by Director Massey.
Agenda Page 9
Clean Power Alliance Board of Directors Page 5 of 7
April 6, 2023 Minutes
8. Approve a Long-Term Energy Storage Agreement (ESA) with NextEra Energy Resources for the Desert Sands Energy Storage I, LLC (Desert Sands) 75 MW Long-Duration Storage Project or in the event Desert Sands is Unable to Achieve Full Capacity Deliverability Status by January 2025, Approve a Long-Term ESA with NextEra Energy Resources for the Key Energy Storage Center 75 MW Long-Duration Storage Project Under Substantially Similar Terms as the Desert Sands ESA and Authorize the Chief Executive Officer to Execute Either Agreement John McNamara, Director, Structured Contracts, provided a presentation on the Desert Sands energy storage agreement. To comply with the required procurement decision issued by the California Public Utilities Commission (CPUC) in June 2021, CPA launched its 2022 Mid-Term Reliability (MTR) Request for Offers (RFO). Staff has concluded negotiations with Desert Sands, a long-duration standalone storage project that includes a provision in which a similar backup project, Key, will be assigned should there be project delays or unforeseen permitting issues that arise with Desert Sands. Mr. McNamara reviewed the CPUC’s MTR compliance requirements and RFO valuation. Projects must achieve Full Capacity Deliverability Status (FCDS), a designation from the California Independent System Operator (CAISO) assuring a project can provide Resource Adequacy (RA), to count towards CPA’s MTR compliance requirements. Key, the backup project with FCDS, will be contracted under the same terms if Desert Sands is unable to secure FCDS. Mr. McNamara provided the overview and rationale of Desert Sands and Key.
Vice Chair Horvath inquired about CPA’s access to the energy, given the locations of the storage projects. Staff indicated that the batteries are charged during the daytime when energy prices and greenhouse gas emissions are low, and the energy is then discharged to the grid in the evening when prices are high. CPA maintains the rights to all storage unit energy revenues. In response to Director Perello’s questions concerning the project labor agreement, Mr. McNamara clarified that Key also has a project labor agreement, and the project labor agreements are encouraged but not required for bidding into the RFO. Chair Gold asked about the thought process behind the Desert Sands and Key projects not being contracted simultaneously. Staff responded that CPA is currently in negotiations with a separate 8-hour storage project and this back-up project approach allows CPA flexibility to mitigate risk of overprocurement.
Motion: Director Erickson, West Hollywood
Second: Director Parkhurst, Sierra Madre
Vote: Item 8 was approved by a roll call vote with an abstention by Director Massey.
9. Local Government Sustainability Assistance Program Presentation Joanne O’Neill, Director, Customer Programs, provided a presentation. The Clean Energy Future Plan, adopted in 2020, sets a 5-year vision for customer programs and is focused on the three pillars of resilience and grid management, building and transportation electrification, and local procurement. The Local Government program objective is to accelerate the adoption of member agencies’ sustainability and climate goals through technical assistance and financial support. Ms. O’Neill reviewed the program design, outreach process, program structure, and program menu items including fleet electrification, building electrification, and community Agenda Page 10
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April 6, 2023 Minutes
charging. Ms. O’Neill provided examples of project grant candidates, explained the project grant approach, and reviewed the budget estimate by year.
Chair Gold shared that the Local Government Sustainability Assistance Program was well received by city managers. Staff answered several questions from Vice Chair Horvath, Chair Gold, and Director Monteiro regarding qualifying projects and grant opportunities. Staff explained that the project menu is focused on member agencies’ facilities and operations, but the grant opportunity is open to any projects that fall within the established parameters. Additionally, staff indicated that the vision of the project is for member agencies to apply on behalf of the projects deemed most appropriate for their community. Vice Chair Horvath suggested that staff consider allowing a project to directly apply for grant resources in the future, while still providing the city with authority and oversight over the project. With regard to grant opportunities, staff advised that grant applications made by non-municipal entities would require a letter of support from the city. Director Massey asked if new member agencies would be eligible, and Ms. O’Neill indicated they would be eligible upon the start of service. Director Susca commented that new construction is less costly when constructed without natural gas pipes. Director Ellison commented that the program is evidence of the benefits of community choice energy and its ability to reinvest in communities. Director Ellison asked a clarifying question about building electrification funding, and Ms. O’Neill indicated that the funding for the Local Government program is separate from Reach Code funding. Responding to Director Perello’s question concerning community charging, Ms. O’Neill advised that staff is still developing the grant application process, adding that there is still funding available through the California Electric Vehicle Incentive Program (CALeEVIP). Multi-family units are eligible for CALeVIP funding.
10. Preview of FY 23/24 Rate Setting
Matt Langer, Chief Operating Officer, provided a preview of the rate setting for FY 2023/24. Staff is conducting a Cost of Service (COS) study that analyzes how the cost to serve CPA’s customers compares to current rates, and concurrently, CPA is also updating financial projections for the next fiscal year. Mr. Langer shared that the COS analysis indicates a widening of the product price differential amongst CPA’s three rate products; this is mainly driven by the increased cost of short-term renewable energy, somewhat mitigated by the overall rising cost of energy in the portfolio. Staff will likely present options with cost differentials resulting in 100% Green priced 4% higher than Clean and 5% higher than Lean, to more closely follow the current COS. Mr. Langer reviewed the April 2023 bill comparisons to Southern California Edison (SCE) rates and FY2023-24 rate options that reflect competitiveness and financial targets.
Responding to Director Massey’s inquiries about marketing resources and processes, Mr. Langer shared that the Green Leader Program recognizes 100% Green businesses, who must sign up to enroll for the program benefits. Director Ellison expressed a preference to move the Lean and Clean products to higher renewable content levels. Mr. Langer clarified that the levels are partly dependent on actual procurement activities, adding that the current target for Clean power is 50% renewables. Mr. Langer indicated that staff expects a higher renewable percentage this year and staff is working towards contracting for long-term projects to add new build renewables into CPA’s portfolio. Chair Gold requested that the Agenda Page 11
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April 6, 2023 Minutes
composition of the Lean product be explored further at the Executive Committee and discuss future strategies.
MANAGEMENT REPORT
Mr. Bardacke welcomed new Board Members Justin Massey of Hermosa Beach, and Jenny Crosswhite of Santa Paula. Mr. Bardacke advised that the CPUC has fully certified service dates for the new cities. Mr. Bardacke thanked all Board Members who sent letters of support for AB 1538 and noted that all are welcome to attend the annual California Community Choice Association (CalCCA) conference in San Diego in May.
COMMITTEE CHAIR UPDATES
Director Susan Santangelo, Chair, Finance Committee, shared that the Finance Committee finalized the budget review and amendment and is working on the second prepay transaction.
Director Robert Parkhurst, Chair, Energy Planning & Resources Committee, welcomed VP of Power Supply Lindsay Saxby; thanked Director David Lesser for filling in as Committee Chair, and named four projects in various stages of negotiation, including a biomass project, a Resource Adequacy project, a 4-hour storage project, and a solar plus 8-hour storage project.
BOARD MEMBER COMMENTS
None.
REPORT FROM THE CHAIR
Chair Gold shared that the engagement of the Sacramento lawmakers was instrumental in securing the CPUC certification of CPA’s Implementation Plan and encouraged all Board members to stay engaged in the process moving forward.
ADJOURN
Chair Gold adjourned the meeting at 4:15 p.m.
Agenda Page 12
Staff Report – Agenda Item 2
To: Board of Directors
From: Christian Cruz, Community Outreach Manager
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Appointment of Community Advisory Committee Members for the remainder of the 2022-2024 Term
Date: May 4, 2023
RECOMMENDATION
Appoint two (2) new members to the CAC for the open positions in the South Bay Region for the remainder of the May 2022 – April 2024 term.
BACKGROUND
On June 7, 2018, the Board of Directors approved a structure for the CAC to provide input on various policy and planning issues as well as be a voice for CPA in the community.
Due to a combination of terms expiring and resignations, both CAC seats have been vacant for several months. Staff worked with member jurisdictions and stakeholders to identify suitable applicants for each open South Bay CAC seat.
Recommended CAC Appointments
Staff recommends that the Board appoint the CAC members highlighted below to the South Bay Region. The applicant summary for the recommended appointees is attached.
CAC APPOINTEES AND RECOMMENDED APPOINTMENTS (South Bay) East Ventura/West LA County
(Agoura Hills, Camarillo, Calabasas, Moorpark,
Simi Valley, Thousand Oaks)
Appointees
• Angus Simmons
• Debbie West
• Jennifer A. Burke (Vice-Chair)
San Gabriel Valley
(Alhambra, Arcadia, Claremont, Sierra Madre,
South Pasadena, Temple City)
Appointees
• Richard Tom
• Kim Luu
Agenda Page 13
Board of Directors Item 2
West/Unincorporated Ventura County
(Ojai, Oxnard, Ventura, Unincorporated Ventura
County)
Appointees
• Lucas Zucker
• Vern Novstrup
South Bay
(Carson, Hawthorne, Manhattan Beach, Redondo
Beach, Rolling Hills Estates)
Recommended appointments:
• Cort Casady
• Diane Wallace
Gateway Cities
(Downey, Hawaiian Gardens, Paramount,
Whittier)
Appointees
• Genaro Bugarin (Vice-Chair)
• Dr. Irella Perez
Westside
(Beverly Hills, Culver City, Malibu, Santa Monica,
West Hollywood)
Appointees
• Cris Gutierrez
• David Haake
Unincorporated LA County
Appointees
• Neil Fromer
• Kristie Hernandez
ATTACHMENT
1. CAC New Applicant Summary
Agenda Page 14
2023 Community Advisory Committee New Applicant Summary Candidate: Cort Casady Subregion: South Bay Eligible Candidate: Yes Section 1: Personal Information
A. Home Address: Palos Verdes Peninsula, CA
B. Occupation: Writer, Producer, and Author
Section 2: Qualifications
A. Experience serving on advisory committees / public commissions / similar bodies:
• Member, Manhattan Beach Library Commission, 2015-2018; Member, Writers Guild of America West, 1979-Present, including Executive Producer of the "Writers Guild Awards" in 2005, 2006, 2009, 2013 & 2014; "Earthbeat/Network Earth," television's first weekly environmental series, Co-creator & Show Producer,TBS (1989-1994); "100% Possible: The Battle for the World's Energy Future," feature documentary film, writer-producer-researcher, 2018- Present B. Experience with outreach or community leadership:
• As a Manhattan Beach Library Commission member, we made community outreach our mission, both to encourage the use of the library and support library activities designed to serve specific parts of the community -- students, teachers, seniors, and local businesses. As a commissioner, I initiated the Library Lunch Club, where community members and local merchants could come to the library’s multipurpose room for lunch and hear an author speak about his/her book. We also enrolled the Boy Scouts to rehabilitate the Free Little Libraries around the area which were dilapidated and in need of repair and/or maintenance. I have also been active in several Assembly and City Council campaigns to support candidates who have strong environmental records and support the underlying basic tenets of the Green New Deal.
C. Experience or expertise in energy field:
• In the early 90's I was co-creator and show producer of television's first weekly environmental series. In that role, I oversaw the presentation of information about energy-saving programs and technology of the time. In my role as a producer and lead researcher for the documentary, "100% Possible: The Battle for the World's Energy Future," I have spent countless hours over the past 3 1/2 years researching clean, renewable energy technology, and solutions, climate injustice in places like Wilmington, and the ground-breaking work of Stanford University climate scientist Mark Jacobson. In the course of my research, I've conducted numerous telephone interviews with experts and front-line activists, engaged deeply and frequently with the leadership of The Solutions Project (www.thesolutionsproject.org), and spoken to leadership at a number of other organizations, including on one brief occasion, the ED of the CPA. I've also written and produced all of the concept papers and presentational materials associated with developing the film, including our current pitch Deck and video Teaser (available upon request).
D. Other skills / knowledge / experience to bring to Committee:
• I bring strong writing and communications skills developed over more than three decades as a television and documentary writer-producer-show runner responsible for managing large and small teams in the delivery of live and recorded entertaining and difference-making content for major networks and studios.
Section 3: Additional Information
A. Why you are interested / what you hope to achieve:
• I'm passionate about the urgent need for America and the world to transition to clean, renewable energy, specifically electricity generated solely by wind, water, and the sun with storage for everything.
As a father of triplet sons who are 28, 28, and 28, and a grandfather with four granddaughters (7, 4, 2 and a newborn), I want my life's work from now on to be about slowing global warming, advancing climate justice, and creating jobs in the green industrial revolution.
Agenda Page 15
B. List other languages / ability to support non-English speaking communities:
• n/a
C. Anything else you would like CPA to know:
• I am semi-retired and can make ample time to work with the CPA. While I continue to serve as Supervising Producer of the annual, televised American Film Institute (AFI) Life Achievement Tributes to America's leading actors and filmmakers, which occupies about eight weeks of the year (May and June), I am committed to the principles of the CEA and the work it does, and I'm eager to contribute whatever I can to its success.
• I look forward to serving the two-year term and attending meetings.
Section 4: Commitment
A. I am able to attend meetings, serve a two-year term, and work to help the organization meet its mission and goals.
B. Signed to certify electric holder in CPA service territory and meet eligibility requirements? Yes.
Agenda Page 16
2023 Community Advisory Committee New Applicant Summary Candidate: Diane Wallace Subregion: South Bay Eligible Candidate: Yes Section 1: Personal Information
C. Home Address: Manhattan Beach, CA
D. Occupation: Retired Public School Educator
Section 2: Qualifications
E. Experience serving on advisory committees / public commissions / similar bodies:
• As a public school educator, my experience included teaching and serving as a principal, district administrator and statewide project director. In these roles, I also served as a member of a bond advisory committee. I have served as a Board member for non-profits. For 12 years, I served as a member and President of my HOA.
F. Experience with outreach or community leadership:
• I served on the planning committee for the development of CPA in my area. I am on the Sierra Club Water Committee and the CADEM Environmental Caucus. I also serve on the Advisory Committee for the SoCal Water Dialog, sponsored by the Metropolitan Water District.
G. Experience or expertise in energy field:
• As an HOA Board President, I engaged in a process with SoCal Edison and the CPUC which resulted in establishing a special project to address a faulty underground electrical system.
H. Other skills / knowledge / experience to bring to Committee:
• I am bilingual in English and Spanish. I also installed solar panels on my roof about 8 years ago.
Section 3: Additional Information
D. Why you are interested / what you hope to achieve:
• David Lesser was aware of the opening and recalled my participation in the planning committee for the CPA. I was pleased to learn of the advisory committee and would like to serve.
E. List other languages / ability to support non-English speaking communities:
• Spanish
F. Anything else you would like CPA to know:
• N/A
Section 4: Commitment
C. I am able to attend meetings, serve a two-year term, and work to help the organization meet its mission and goals.
D. Signed to certify electric holder in CPA service territory and meet eligibility requirements? Yes.
Agenda Page 17
Staff Report – Agenda Item 3
To: Board of Directors
From: Lindsay Saxby, Vice President, Power Supply
Approved by: Ted Bardacke, Chief Executive Officer
Subject: Task Order with Ascend Analytics for 2023 Clean Energy and Reliability RFO Support Services
Date: May 4, 2023
RECOMMENDATION
Authorize the Chief Executive Officer to execute Task Order No. 5 with Ascend Analytics for 2023 Clean Energy and Reliability RFO support services for a not-to-exceed amount of $172,500.
BACKGROUND
CPA will be launching a solicitation for long-term power purchase agreements, resource adequacy purchase agreements, and energy storage contracts (“2023 Clean Energy and Reliability RFO”) in June 2023 to procure long-term resources. Projects procured in the 2023 Clean Energy and Reliability RFO are intended to meet overall energy and Resource Adequacy portfolio needs and to comply with the California Public Utilities Commission (CPUC) procurement order for all load-serving entities to procure new reliability capacity, including long-duration storage and baseload renewable energy1. The 2023 Clean Energy and Reliability RFO process is estimated to be completed over a nine-month timeframe. Based on the responses received from previous RFOs and the project eligibility requirements from the CPUC order, CPA is anticipating a diverse set of responses to the 2023 Clean Energy and Reliability RFO from a variety of technologies and with highly complex offer structures.
1 On June 24, 2021, the CPUC issued its Decision Requiring Procurement to Address Mid-Term Reliability (2023-2026), D.21-06- 035, which orders load serving entities, including CPA, to procure 11,500 MW of new capacity statewide to replace the capacity retiring from the Diablo Canyon Power Plant as well as several once Agenda Page
-through-cooling (OTC) thermal power plants.
18 Board of Directors Item 3
In support of CPA’s 2023 Clean Energy and Reliability RFO, staff issued a Task Order Solicitation. The purpose of the Task Order Solicitation was to acquire consulting services for four tasks: (1) support RFO solicitation design and offer selection criteria, (2) RFO administration, including a dedicated website and offer intake and validation, (3) assistance with valuing long-term energy proposals submitted in response to the RFO, and (4) ongoing valuation support.
Selection Process
The Task Order Solicitation was sent to all of CPA’s pre-qualified providers and Ascend Analytics was the only respondent. Ascend Analytics is an energy consulting firm offering specialized experience and knowledge in the valuation of energy resources. Ascend Analytics’ services include a customized intake process for project submittal and a robust analytics engine for project evaluation.
Ascend Analytics previously provided long-term RFO support services to CPA in the 2019 Clean Energy RFO, 2020 Clean Energy RFO, 2021 Mid-Term Reliability RFO and 2022 Mid-Term Reliability RFO. The fees for the base services ($157,500) are the same as those paid to Ascend Analytics in 2022. For 2023, the Task Order authorizes optional services in the event that CPA needs analysis of up to 10 additional alternative proposals.
If CPA chooses to utilize these optional services, the amount of fees would reach the not-to-exceed amount of $172,500.
FISCAL IMPACT
At a not-to-exceed amount of $172,500 for Tasks 1-4, the Ascend proposal is within CPA’s budgeted cost for these services. Expenditures associated with the proposed Task Order will be included in the FY2023/24 Budget proposed to the Board in June 2023.
ATTACHMENT
1. Ascend Analytics Task Order No. 5
Agenda Page 19
EXHIBIT C1
MASTER AGREEMENT TASK ORDER
(FIXED PRICE PER DELIVERABLE BASIS)
ASCEND ANALYTICS LLC
(“CONTRACTOR”)
Task Order No. 5 CPA Master Agreement No. 2018-07-30
Project Title: Support Services for 2023 Clean Energy and Reliability RFO Period of Performance: May 4, 2023, through May 3, 2024 CPA PROJECT DIRECTOR: Theodore Bardacke
CPA TASK ORDER MANAGER Lindsay Saxby
I. GENERAL
Contractor shall satisfactorily perform all the tasks and provide all the deliverables detailed in the Task Order attached hereto as Exhibit C1-A, on a fixed price per deliverable basis, in compliance with the terms and conditions of Contractor’s Master Agreement.
II. PERSONNEL
Contractor shall provide the below-listed personnel:
Skill Category: Director, Senior Manager, Manager, Senior Analyst, and Analyst Name: Brent Nelson
Name: Anthony Boukarim
Name: Scott Nicholson
Name: Valerie Katz
Name: Siddharth Matthew
III. PAYMENT
A. The Total Maximum Amount that CPA shall pay Contractor for all deliverables to be provided under this Task Order is shown below:
Deliverable Maximum Amount
Pre-RFO Activities (Task Order Deliverable 1) $ 25,000.00 RFO Administration (Task Order Deliverable 2) $ 37,500.00 RFO Evaluation & Negotiation Support, including ten
alternative offer valuations (Task Order Deliverable 3 & 4) $ 90,000.00 Each additional block of 10 alternative offer valuations $ 15,000.00 Agenda Page 20
Ascend Fundamental Price Curve (CAISO v. 4.1) $ 5,000.00 Total Maximum Amount $ 172,500.00
B. Contractor shall satisfactorily provide and complete all required deliverables in accordance with Exhibit C1-A notwithstanding the fact that total payment from CPA for all deliverables shall not exceed the Total Maximum Amount in III.A,above.
C. Contractor shall submit all invoices under this Task Order to:
Clean Power Alliance
Attn: Accounts Payable
801 S. Grand Ave, Ste. 400
Los Angeles, CA 90017
Email: [email protected]
IV. SERVICES
In accordance with Master Agreement Section 2, Contractor may not be paid for any task, deliverable, service, or other work that is not specified in this Task Order, and/or that utilizes personnel not specified in this Task Order, and/or that exceeds the Total Maximum Amount of this Task Order, and/or that goes beyond the expiration date of this Task Order.
ALL TERMS OF THE MASTER AGREEMENT SHALL REMAIN IN FULL FORCE AND EFFECT. THE
TERMS OF THE MASTER AGREEMENT SHALL GOVERN AND TAKE PRECEDENCE OVER ANY CONFLICTING TERMS AND/OR CONDITIONS IN THIS TASK ORDER. NEITHER THE RATES NOR ANY
OTHER SPECIFICATIONS IN THIS TASK ORDER ARE VALID OR BINDING IF THEY DO NOT COMPLY WITH THE TERMS AND CONDITIONS OF THE MASTER AGREEMENT.
Contractor’s signature on this Task Order document confirms Contractor’s awareness of the terms and conditions of the Master Agreement and specifically with the provisions of Section 2 of the Master Agreement, which establish that Contractor shall not be entitled to any compensation whatsoever for any task, deliverable, service, or other work:
A. That is not specified in this Task Order, and/or
B. That utilizes personnel not specified in this Task Order, and/or C. That exceeds the Total Maximum Amount of this Task Order,and/or D. That goes beyond the expiration date of this Task Order.
REGARDLESS OF ANY ORAL PROMISE MADE TO CONTRACTOR BY ANY CLEAN POWER ALLIANCE PERSONNEL WHATSOEVER.
ASCEND ANALYTICS LLC
By: _________________________
Name: _________________________
Title: _________________________
Date: _________________________
CLEAN POWER ALLIANCE
By: _________________________
Name: Theodore Bardacke
Title: Chief Executive Officer
Date: _________________________
Agenda Page 21
EXHIBIT C1-A
ASCEND TASK ORDER DESCRIPTION
Long-Term RFO Support Services for 2023 Clean Energy and Reliability RFO Summary
Contractor shall provide support for CPA’s 2023 solicitation for long-term clean energy, storage contracts and potentially gas fired tolls, including solicitation design, Requests for Offer (“RFO”) administration, and offer evaluation and selection.
CPA TASK ORDER – Scope of Work
TASKS:
A. Task 1: In advance of the RFO launch, support solicitation design and offer selection criteria.
1. Support CPA’s development of the solicitation scope and process design, including refinement of scope of work and schedule.
2. RFO selection criteria will incorporate the following quantitative and qualitative factors:
a. Energy, Ancillary Services, and Resource Adequacy value. b. Development risk.
c. Environmental stewardship.
d. Workforce Development.
e. Benefits to Disadvantaged Communities.
f. Project Location.
Task 1 Deliverables:
• Final solicitation process and schedule; framework for offer qualification and selection criteria, pre-launch notification.
B. Task 2: Administration of requests for offers of energy and resource adequacy projects.
1. Provide input on CPA’s requested products [Note: form power purchase agreements (“PPAs”) will be provided by CPA].
2. Provide feedback on CPA’s solicitation materials and a comprehensive solicitation protocol to be issued to potential providers.
3. Provide a submission platform that accommodates a high volume of bidders, with multiple, differentiated offers from each bidder.
4. Manage Q&A process to support the submission of conforming proposals, including all communication with bidders.
5. Project manage the solicitation process to ensure key dates are met.
Task 2 Deliverables:
• Written solicitation protocol; host website for receipt of offers; miscellaneous RFO administration services.
C. Task 3: Proposal evaluation and portfolio assessment.
1. Conduct initial QA/QC of offers and communicate with bidders on an as-needed basis.
Agenda Page 22
2. Build a valuation model to perform financial analysis of individual projects and portfolios of projects to assess value and assist CPA with constructing the optimal portfolio of projects for CPA1
.
3. Longlist Summary: Analyze project developers, project characteristics, and offer details to present offers as an initial comprehensive list of qualified and conforming project offers. The longlist deliverable will include a comprehensive Excel spreadsheet summarizing all offers with key descriptive information for each offer. The deliverables will also include a summary of RFO metrics and trends to be presented to CPA’s Board of Directors and CPA’s Energy Committee.
4. Valuation Ranking: perform advanced analytics on all conforming offers. Present results as a comprehensive Excel spreadsheet summarizing all conforming offers with key descriptive information and selection criteria ranking for each offer while highlighting the most attractive projects to procure. To facilitate CPA’s selection process by the RFO review team2 and subsequent presentation to the Energy Committee, the valuation ranking should be provided to CPA in comprehensive and easy to understand summary report along with summary of RFO metrics and trends.
Task 3 Deliverables:
• Evaluation of all submitted offers and analysis of selected CPA portfolio and valuation ranking deliverables as described above.
D. Task 4: Ongoing valuation support for offer variations.
1. Valuation of individual offer variants for approximately 10 offers that may have variations to standard RFO protocol terms. For example, variations on project sizing or term length.
Task 4 Deliverables:
• Evaluation of one-off non-conforming offer variants as compared to both the original offer and the broader longlist valuation.
PROJECT SCHEDULE AND COORDINATION
Each task listed above will be undertaken in close coordination with CPA’s project team. Contractor will discuss initial findings or approaches for each task with CPA’s project team before developing final work products in order to avoid rework. CPA’s project team will provide timely feedback and input in developing the work product.
The key events for CPA’s 2023 Clean Energy and Reliability RFO are listed below and are subject to change.
Note: rows shaded in grey are milestones related to CPA’s Board of Director’s meeting schedule.
Key Event Dates
(2023-2024) Action
May 4, 2023
CPA Board Meeting - Board approves Clean Energy RFO Services Task Order (if needed)
May 9, 2023 Task Order kick-off with consultant
May 15, 2023 Complete Task 1: Solicitation design
1 Unless otherwise agreed by CPA in writing prior to the start of work under this Task Order, all models shall be produced in Excel and provided to CPA in unlocked formats. 2 The review team will include CPA’s senior management and 1-3 members of CPA’s Board of Directors.
Agenda Page 23
June 2, 2023 Complete Tasks 2.1 and 2.2: Finalize bidder materials June 6, 2023 Complete Task 2.3: Launch RFO
June 12, 2023 Complete Task 2.4: Conduct RFO Webinar
June 28, 2023 Close Q&A bidder submission window
July 10, 2023 Complete Task 2.5: Post Q&A responses
July 19, 2023 Offers Due
August 1, 2023 Task 3.1: Complete QA/QC of RFO responses and Task 3.3: Longlist Summary
August 23, 2023 CPA Energy Committee – Review RFO Longlist trends Late-August 2023 Complete 3.3: Perform individual contract and portfolio analysis and
3.4 Valuation Ranking
Early-September 2023 Shortlist selection recommendation by CPA’s RFO review team Mid-September 2023 CPA Energy Committee – Approve shortlist September 2023 –
January 2024
Task 4: Ongoing valuation support as needed through PPA negotiations
February 8, 20243 CPA Board meeting - Approve negotiated PPAs 3 February 8th is the target date for PPA approvals. PPA negotiations may extend through the first half of 2024.
Agenda Page 24
Staff Report – Agenda Item 4
To: Board of Directors
From: C.C. Song, Senior Director, Regulatory Affairs
Approved by: Ted Bardacke, Chief Executive Officer
Subject: California Energy Commission (CEC) Load Management Standards (LMS) Compliance Extension Request
Date: May 4, 2023
RECOMMENDATION
Authorize CPA staff to submit an extension request to the CEC to meet its LMS compliance obligations.
BACKGROUND
In October 2022, the CEC amended its LMS to require load-serving entities (LSEs) to upload their time-varying rates, which for CPA is our time of use (TOU) rates, onto the CEC’s Market Informed Demand Automation Server (MIDAS). The CEC also required LSEs to develop electricity rates that would change on an hourly basis depending on locational marginal pricing and greenhouse gas emissions levels. CPA is required to upload these time-dependent rates to MIDAS by July 1, 2023.
1 Extension Request to Comply with July 1, 2023 LMS Obligation CPA is seeking this extension for two reasons. First, the CEC has not provided criteria for rate upload, including the granularity of rate data, the upload format of various rate modifiers, and the treatment of import vs. export rates. Second, LSEs have identified numerous issues with MIDAS that the CEC has not addressed, including the fact that the MIDAS database development itself is not yet complete. Until the database is fully functional, LSEs will not be able to automate the process of uploading rates to MIDAS. 1 CCR, Title 20, Section 1623.1(c) directs each CCA to “upload its existing time-dependent rates applicable to its customers to the Commission’s Market Informed Demand Automation Server (MIDAS) database” no later than 3 months after April 1, 2023.
Agenda Page 25
Board of Directors Item 4
Manual upload of the rates is not feasible for CPA because of the amount of time that would be required to upload the large number of rates and rate modifiers. These issues necessitate CPA, along with the IOUs and other CCAs,2 to seek an extension of its July 1, 2023 compliance obligation.
The LMS regulations do not specify how an extension request should be filed. CPA and other LSEs believe that in the absence of regulatory direction, an extension request to the CEC is administrative and/or non-material and that a request from CPA staff is sufficient.
However, Sections 1623.1(a)(1) and 1623.1(a)(2) indicate that a CCA’s rate approving body should approve a compliance plan with the LMS regulations by April 1, 2024, and may “approve a plan, or material revisions to a previously approved plan, that delays compliance or modifies compliance.” This language could be read to suggest that an extension to upload onto MIDAS requires Board approval. This is the interpretation that CEC’s legal counsel has taken.
Accordingly, out of abundance of caution, CPA staff requests authority from the Board to submit an extension request to the CEC to delay upload of CPA’s existing time-varying rates at least until the CEC has completed the development of the MIDAS database.
ATTACHMENT
None.
2 Staff’s understanding is that all IOUs and CCAs covered by this LMS amendment will be requesting a similar extension.
Agenda Page 26
Staff Report – Agenda Item 5
To: Board of Directors
From: Dr. Monique Edwards-Greer, Chief Administrative Officer Approved by: Ted Bardacke, Chief Executive Officer
Subject: Amendment to the Professional Service Agreement with Langan Engineering and Environmental Services, Inc. for Software Development and Information Technology
Date: May 4, 2023
RECOMMENDATION
Approve an amendment to the Professional Services Agreement with Langan Engineering and Environmental Services, Inc. for software development and information technology consulting services with a total Not-To-Exceed amount of $205,000.
BACKGROUND
Over the past two years, CPA has been building an in-house Energy Trading and Risk Management (“ETRM”) system that houses CPA’s energy contract data and is used for position management, financial modeling, payment validation, and other procurement and financial support functions.
Selection Process
In October 2022, CPA released an RFP for Software Development and Information Technology Consulting Services to provide support services for ongoing work in building and maintaining this ETRM system. As a result of the RFP, CPA selected Langan Engineering and Environmental Services (“Langan”) and entered into a Professional Services Agreement with Langan at a Not-To-Exceed (NTE) amount of $35,000 for two of the four tasks solicited in the RFP, i.e., creating a development site and stabilization of the ETRM.
Agenda Page 27
Board of Directors Item 5
Now that Langan has successfully completed these two exploratory tasks, CPA is ready to move forward with the remaining two tasks and complete the scope solicited in the RFP. The remaining tasks include (i) code redesign and (ii) various system enhancements.
Contract Overview
The proposed contract amendment has a Not-To-Exceed (NTE) amount of $170,000 and will include the remaining two tasks, thus completing the scope solicited in the RFP, namely (i) ETRM code redesign and (ii) various system enhancements. The total value of the contract, including the initial contract and this proposed amendment, is $205,000.
FISCAL IMPACT
Proposed FY 2022/23 contract costs are included in the FY 2022/23 board approved Budget. Contract costs associated with subsequent periods would be included in future annual budget proposals.
ATTACHMENT
1. Proposed Amendment to the Professional Service Agreement with Langan Engineering and Environmental Services, Inc.
Agenda Page 28
AMENDMENT NUMBER ONE TO
LANGAN ENGINEERING AND ENVIRONMENTAL SERVICES
PROFESSIONAL SERVICES AGREEMENT
This Amendment Number One (“AMENDMENT ONE”) to the Professional Services Agreement is made by and between Clean Power Alliance of Southern California (“CPA”) and Langan Engineering and Environmental Services, Inc. (“CONTRACTOR”) on April 17, 2023. CPA and CONTRACTOR may individually be referred to herein as a “Party,” or collectively as the “Parties.”
RECITALS
WHEREAS, a Professional Services Agreement (“AGREEMENT”) was executed on November 28, 2022, between CPA and CONTRACTOR to provide professional services for software development and information technology (“IT”) consulting services; WHEREAS, CPA desires to amend the AGREEMENT in order to update the scope of work set forth in Exhibit A, the Contractor’s Workplan set forth in Exhibit B, and the compensation set forth in Exhibit C;
WHEREAS, CONTRACTOR has the competence and expertise to provide the professional services, described above; and,
WHEREAS, CONTRACTOR desires to continue providing and performing these professional services.
NOW, THEREFORE, it is mutually agreed by and between the Parties hereto to amend the AGREEMENT as follows:
1. Exhibit A of the AGREEMENT is deleted in its entirety and replaced with Exhibit A (Scope of Work), attached hereto.
2. Exhibit B of the AGREEMENT is deleted in its entirety and replaced with Exhibit B (Contractor’s Workplan), attached hereto.
3. Exhibit C of the AGREEMENT is deleted in its entirety and replaced with Exhibit C (Compensation), attached hereto.
4. Except as specifically amended hereby, all other terms and conditions of the AGREEMENT shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this AMENDMENT ONE to be executed as of the date first above written.
[Signature Page Follows]
Agenda Page 29
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
By
______________________________________
Theodore Bardacke
Chief Executive Officer
CONTRACTOR: LANGAN ENGINEERING AND ENVIRONMENTAL
SERVICES, INC.
By
_______________________________________
Brett Milburn
Director of Digital Solutions/VP
Agenda Page 30
Exhibit A – Scope of Work
PROJECT TASKS AND DELIVERABLES
Contractor shall be responsible for providing a full range of software development and IT consulting services, including full project management for the development and management of CPA’s Energy Trading and Risk Management (“ETRM”) system.
Contractor must account for the following tasks and all tasks must be completed according to the timelines set forth below:
Task #1: ETRM Code Re-Write and Maintenance of Development Site Migrate the current ETRM application, which is written in Java, using a Postgres database and running on Ubuntu in an Amazon Web Services (“AWS”) Elastic Compute Cloud (“EC2”) instance, to a dedicated host in AWS, owned by CPA, and create a separate test environment.
The reproduction of the build environment is not required to be completed in Java, and Contractor shall work with CPA to determine the best selection from the available alternatives. a. Conduct in-person meetings with CPA staff to review the current state of the ETRM application and perform requirements gathering.
b. Validate and test the migrated ETRM application in the new production environment to verify that it replicates the current ETRM application and adheres to the requirements provided by CPA.
c. Create a formal upgrade process for releasing new versions of the ETRM application in test and production.
d. Provide documentation of the production and test environment design and configuration.
Documentation shall be provided in Word format and describe the tools used to create both environments, how they operate, how to change source code, how a developer works with GitHub and releases software changes to production, and instructions on their use.
Deliverables for Task #1:
• Kickoff meeting and requirements gathering completed. • Completed and fully functional production and test environments for the ETRM application. • Documentation of the production and test environments.
Timeline for Task #1:
• The code re-write shall be completed within six (6) months of initiation. • Maintenance of the development site is ongoing over the duration of the Agreement.
Task #2: System Enhancements
Document and implement new system enhancements as directed by CPA. The following list of tasks is intended to illustrate the type of work that would be completed under Task #2. The actual enhancements may include, but are not limited to, the following.
Agenda Page 31
a. Add ability to create a child record linked to an existing parent record. Currently you can only add child records to new parent records when they are initially created. b. Break the Forward Price Monthly table into two (2) tables. The current version of the table is too large.
c. Change table naming convention.
d. Update delivery point names to reflect California Independent System Operator (“CAISO”) Import Allocation Rights (“IAR”) delivery points as listed in the Customer Interface for Resource Adequacy (“CIRA”).
e. Draft a two (2) column table to be used for the drop-down list in the data entry screen. f. Build a new GUI screen to enable users to enter new contract data in data loader. Entered data would populate or call on data from the Counterparty, Parent, Child, Project, and Power Purchase Agreement Detail tables.
g. API integrations to various applications such as the Tenaska Power Tools platform and future settlements software (CPA expects to make a selection at the beginning of November).
a. Establish an API interface to ETRM for transmitting information from ETRM on energy trades and energy and ancillary settlement details, and possibly a future bi-directional exchange of information.
b. Provide documentation of integration, including a design document update capturing the design and implementation approach and comments in the source code.
h. Develop scripts to automate multiple data flows from various sources to Snowflake, the data warehouse, Postgres, and ETRM application, including:
a. Customer data.
b. Advanced Metering Infrastructure (“AMI”) customer energy consumption. c. Historical usage data.
d. Provide documentation of how the scripts operate and what they achieve. e. Scripts shall be stored in GitHub.
i. Develop a user guide and design document that captures the build steps, including the development and high-level design of the application.
j. Provide ongoing training to CPA staff surrounding all project updates. k. Provide documentation of enhancements, including:
a. Design document updates for each enhancement.
b. Comments explaining details of implementation in the source code. l. A list of actual enhancements to be provided by CPA and prioritized with Contractor.
Deliverables for Task #2:
• Completion of system enhancements.
• Documentation of system enhancements.
Timeline for Task #2:
• Ongoing over the duration of the agreement.
Task #3: ETRM Stabilization and Legacy Application Maintenance Identify, document, and resolve issues (design flaws, performance, and functional) within the Agenda Page 32
ETRM application in its current state.
a. Utilize Jira or Github to track and create a log of issues and code. a. An example of an existing issue is an occasional challenge with the tomcat9 server performance. The tomcat9 server stops working every couple of weeks and requires a reboot. This resolves the issue temporarily and it seems to work fine after the reset.
b. Test and provide proof of proposed resolution.
c. Capture details of resolution in source code and Jira. d. Create log/audit files.
e. Additional considerations include, but are not limited to, resource availability, response time, tomcat reboot issues, and disaster recovery.
Deliverables for Task #3:
• Completion of ETRM stabilization activities.
• Documentation of resolved defects.
Timeline for Task #3:
• Task #3 will be ongoing until the application is rewritten and redeployed.
Task #4: Role and Permission Management – Security (AWS, ETRM Application, Database)
Establish and update role and permission management features, including but not limited to the following:
a. Ubuntu Server Hosted in AWS.
a. Transition from internet protocol (“IP”) based security to user-based security. b. Implement an authentication and authorization protocol such as Lightweight Directory Access Protocol (“LDAP”) or Kerberos.
c. Create individual user accounts.
d. Assign role-based permissions to users, with AWS best practices, including establishing accounts in Ubuntu systems for automation processes. b. Snowflake, Postgres, and Microsoft Structured Query Language (“SQL”). a. Create individual user accounts and establish role assignments to secure access for users in Postgres.
b. Establish secret key files for individual user access controls for Postgres and SQL.
c. Establish various user groups and roles in Snowflake.
Deliverables for Task #4:
Agenda Page 33
• Completion of updates to role and permission management features. • Written overview of the approach and plan to be reviewed by CPA.
Timeline for Task #4:
• Task #4 shall be completed within two (2) weeks of application re-write.
Agenda Page 34
Exhibit B – Contractor’s Workplan
Migration of Current Environment and Creation of a Test Environment Contractor will start the project with a discovery phase, commenced by holding several kickoff and knowledge transfer meetings with CPA. The primary purpose of the discovery will be to learn about and document the following:
• Existing ETRM application functionality
• AWS environment
• Postgres database configuration, connections, and schema • Snowflake integrations
• Existing operational procedures (e.g., how to update data, or publish code) • Security configurations of the existing environment
The resulting documentation will be shared with CPA and used by Contractor to help execute on the subsequent tasks in this project.
Contractor understands that CPA is looking to move ETRM to a new dedicated host in AWS, alongside a testing environment. In order to accomplish this, Contractor will first set up a DevOps environment for CPA, if one does not already exist.
Implementing a strong DevOps environment is essential to completing Task #1, as it provides a foundation to track and manage code, manage releases, and efficiently deploy to multiple environments. The DevOps environment includes version control for the code (such as Git), Continuous Integration/Continuous Deployment (“CI/CD”), and optionally integrated issue tracking. Contractor is familiar with a number of DevOps environments, including GitHub, Azure DevOps, Atlassian, and GitLab.
Contractor will work with CPA to determine the best fit for this project.
Sample DevOps Workflow
Following the implementation of a DevOps environment, Contractor will proceed to set up and configure the new ETRM production and test environments in AWS. These environments will leverage DevOps with semi-automated deployments for the initial migration, and when managing new ETRM releases. This allows for the test and production environments to be easily updated when the code changes, and without requiring manual interaction with the server.
Finally, Contractor will amend the documentation produced from the discovery phase Agenda Page 35
to include configuration and operational instructions on the new production and test environments, as well as the DevOps implementation.
System Enhancement
Contractor understands that CPA is seeking additional enhancements to the ETRM application. While Contractor has considerable in-house software development capabilities, Contractor may opt to involve a subcontractor for Java-based programming and database work, under the direction of Contractor to successfully complete this project. Additionally, depending on the results of Contractor’s previous discovery and assessment of the ETRM application and its codebase, Contractor may recommend a partial or full rewrite of the application in a suitable programming language and framework. Software development tasks will be tracked in the issue tracking system set up in Task #1.
Contractor maintains a highly skilled team of solution architects, programmers/engineers, analysts, and managers that have the ability to customize desktop, web, and mobile applications to achieve our client’s objectives. Contractor has developed numerous desktop, web, and mobile plugins for internal staff as well as clients to enhance software functionality as well as operating efficiencies. This includes developing scripts that assist in streamlining or automating data transformations using extract, transform and load (“ETL”) processes as required.
Contractor’s established development methodologies and project management practices significantly reduce risk, increase efficiencies, and ensure a collaborative environment throughout the complete development process, maintaining schedule and adhering to budget. Furthermore, Contractor understands that software development is fluid, and requirements can, and often do change over time. To account for this, Contractor’s solutions team employs agile development methods, focusing on testing, version control, continuous integration, and automated deployment.
Contractor has extensive experience developing integrations and transfer of data between disparate systems. Contractor has helped numerous clients integrate multiple third-party applications through the use of software plug-ins, real-time data feeds, related database tables, and custom development solutions. Generally, Contractor can integrate with any external software that provides an API, SDK or REST service.
Contractor’s software development team uses a combination of COTS and custom DevOps tools and processes. These all come together to allow Contractor to efficiently tackle any type of project, be it web, desktop, mobile or any other platform.
For web development, Contractor’s team leverages modern JavaScript frameworks and libraries. We develop new projects using ES2015/ES6, ReactJS, the ArcGIS JavaScript API 4.x and Babel/Webpack to support legacy browsers (IE11). Prior to the onset of the project, Contractor will determine which languages/frameworks are most appropriate for this project.
Agenda Page 36
When custom tools are required, Contractor has the ability to use a wide range of languages and libraries for automation and backend server development, highly dependent on the requirements of the project. Contractor’s most common uses are:
• Process automation using Python
• Web APIs using C#/.NET 6
• Extract, Transform & Load (ETL) data processes
Contractor will document ETRM enhancements and new operational procedures for use by CPA. Contractor will additionally provide training on updated areas of the application at CPA’s request, either via video conference call or a scheduled in-person training.
ETRM Stabilization
This task centers on identifying and resolving issues in the existing ETRM application.
We anticipate needing to work closely with the CPA in order to understand the functional requirements of the application and its intended usage. Throughout our evaluation, identified issues will be tracked utilizing a software such as Atlassian Jira or GitHub and integrated with the DevOps environment setup in Task 1. Once identified, issues will also have a test or resolution condition set in order to verify it is complete.
Contractor’s QA staff will use a combination of the functional requirements and the logged issues to test the ETRM application. As our QA staff tests and works on issues, their findings are logged in the issue tracker. An example bug/issue workflow is shown in Figure 2.
Agenda Page 37
Figure 2 - Example item workflow in an issue tracker
Some issues may require setup of additional testing and monitoring tools in the ETRM environments in order to gather data about the issue. For instance, to find the root cause of the intermittent tomcat9 server issue referenced in the RFP, we may need to monitor server logs and performance over several weeks to pinpoint the source of the problem to recommend an approved solution.
Role and Permission Management
Contractor will work with the CPA to upgrade the security of the ETRM application and its environments. The specific security products and configuration will be determined in conjunction with the CPA and as a result of the information learned in the discovery phase of the project. We will need to understand how PostgreSQL and Snowflake are currently accessed, and their intended usages. However, we anticipate leveraging built-in AWS security products such as AWS Cognito and AWS Identity and Access Management (IAM) since these products allow for fine-grained management of identities as well as AWS resource access.
To replace the CPA’s existing IP-based security, we anticipate using AWS IAM to govern access to resources, such as the AWS Ubuntu Server. If the CPA has an existing supported identify provider such as Okta or Azure AD, Contractor will federate it with IAM.
Federation between an identity provider and IAM enables Single Sign-On (SSO) capabilities, and also removes the need to manually create new user accounts in AWS. If an identity provider does not already exist, then IAM can serve as one using the SAML
2.0 protocol.
Snowflake and PostgreSQL will also need security configuration to ensure proper access of data. Snowflake supports creation of user accounts and roles. Snowflake also supports SSO through SAML – Contractor will work with the CPA to determine if integrating with AWS IAM is a potential security solution here. Likewise, there are multiple security options for PostgreSQL, depending on the existing deployment and configuration. These include LDAP, IAM database authentication, and managing user secrets via AWS Secrets Manager.
Agenda Page 38
Exhibit C – Compensation
Contractor shall satisfactorily provide all the contemplated Services detailed in Exhibit A at the following hourly rates specified in the table below and in compliance with the terms and conditions of this Agreement.
Contractor’s Time & Material Rates
Role Hourly
Rate
Administrative $70
IT/Data Analyst $120
Senior IT/Data Analyst $140
Cyber Security Engineer $150
Solutions Engineer/Developer $160
Network Engineer $170
Senior Solutions Engineer/Developer $190
Senior Network Engineer $200
Project Manager $210
Senior Project Manager $230
Database Administrator $230
Lead Developer/Solutions Architect $230
Lead Infrastructure Architect $240
Project Director $250
Technology Director $290
Additionally, Contractor shall invoice CPA no more than the budgeted amount listed for each task listed in below.
Contract (Task) Item Estimated Due Date Not to Exceed
Amount
Task 1:
ETRM Code Re-Write and Maintenance of
Development Site
February 24, 2023 $80,000
Task 2:
System Enhancements
Ongoing over the duration
of the Agreement
$60,000
Task 3:
ETRM Stabilization and Legacy Application
Maintenance
November 27, 2023 $20,000
Task 4:
Role and Permission Management – Security
(AWS, ETRM Application, Database)
Ongoing over the duration
of the Agreement
$10,000
TOTAL Program Costs $170,000
Agenda Page 39
Any travel, administrative expenses, and materials (hereinafter, “Expenses”) will be billed in the amount incurred by Contractor for actual out-of-pocket cost, without any additional mark-up by Contractor. Any Expenses incurred shall be billed for the month in which the Expenses are incurred. Expense reports detailing all Expenses, along with receipts, shall be presented to CPA for reimbursement. All expenses must be approved by CPA in advance writing before they are incurred.
The Total Maximum Amount that CPA shall pay Contractor, including any subcontractor that the Contractor may retain, for all Services and Expenses to be provided under this Professional Services Agreement shall not exceed One Hundred Seventy Thousand Dollars ($170,000) ("Not-to-Exceed" or "NTE").
Contractor shall satisfactorily perform and complete, in the judgement of CPA, all required Services in accordance with Exhibit A, notwithstanding the fact that total payment from CPA shall not exceed the NTE.
Agenda Page 40
Staff Report – Agenda Item 6
To: Board of Directors
From: Gina Goodhill, Senior Director, Government Affairs Approved By: Ted Bardacke, Chief Executive Officer
Subject: Monthly Bill Position Tracker
Date: May 4, 2023
RECOMMENDATION
Receive and file.
Intentionally left blank. Table located on the next page.
Agenda Page 41
Board of Directors Item 6
BILL POSITIONS
Bill Number &
Author
Title & Summary Status CPA
Position
Alignment with
CPA Policy
Platform
Notes
SB 507
Senator Lena
Gonzalez
Electric vehicle charging station
infrastructure: assessments
Would require the California Energy
Commission (CEC) to quantify EV
charging infrastructure needed to
support the state’s 2035 electric
vehicle goals, including in
disadvantaged communities and
between different types of housing.
If infrastructure is not on track to
meet state goals and is
disproportionately distributed, the
CEC must develop solutions.
Amended
4/17/2023
Currently in
Senate
Appropriations
Committee
Support 3b; 5d
AB 1373
Assemblymember
Eduardo Garcia
Energy
Would make significant policy
changes to electricity market
structure and regulation as
proposed by the Newsom
Administration’s 2023 budget
energy trailer bill, including the
creation of a central procurement
entity (CPE) run by either the
Department of Water Resources
(DWR) or IOUs; capacity payments
for load-serving entities (LSEs) that
are deficient in their reliability
obligations and that used DWR’s
Strategic Reliability Reserve (SRR)
to meet their reliability needs; and
expanded CPUC oversight and
enforcement of CCAs integrated
resource plans.
Amended
4/13/2023
Currently in
Assembly
Appropriations
Committee
Oppose
Unless
Amended
1b; 1d; 2a; 2d This bill poses threats to
CCA’s autonomy and
amending and/or opposing the
bill is the top priority for our
trade group, CalCCA. CPA will
be active in this effort.
Agenda Page 42
Board of Directors Item 6
AB 1538
Assemblymember
Al Muratsuchi
Clean Energy Reliability Program
Would create an incentive program
for load-serving entities that procure
clean energy capacity above their
minimum CPUC requirements in
order to enhance electricity system
reliability and reduce customer
costs.
Amended
4/17/2023
Currently in
Assembly
Appropriations
Committee
SPONSOR 2a; 2d; 5a; 5c; This is CPA’s top legislative
priority.
ATTACHMENT
1. 2023 Legislative & Regulatory Policy Platform
Agenda Page 43
2023 Legislative and Regulatory Policy Platform
Overview and Purpose
The Clean Power Alliance (CPA) Legislative and Regulatory Policy Platform (Platform) serves as a guide to the CPA Board of Directors and CPA staff in their advocacy efforts and engagement on policy matters of interest to CPA. The Platform allows both members of the CPA Board of Directors and CPA staff to pursue actions at the regional, state and federal legislative and regulatory levels in a consistent manner and with the understanding that they are pursuing actions in the best interest of the organization and its mission, its member agencies, and its customers.
The Platform provides direction to CPA staff on positions that should be taken on regulatory matters and legislative bill proposals. The Platform also provides guidance to the Chief Executive Officer on positions that should be taken on legislative and regulatory matters that come before the California Community Choice Association (CalCCA) Board of Directors.
CPA staff report to the Board monthly on all positions taken on legislative bills. For bills that fall outside the scope of this platform, bills that are likely to attract high-profile supporters and detractors, bills that would raise taxes, or bills that would knowingly put CPA at odds with positions that its member agencies have taken, CPA staff will seek approval of a proposed position to the Legislative & Regulatory Committee and Board of Directors before taking a position.
Policy Principles
The Legislative and Regulatory Policy Platform is centered around five basic principles:
1. Protecting CPA’s local control and competitive position, especially as it relates to rates, finances, power procurement and expansion of its service territory.
Agenda Page 44
2. Pursing power resource planning and procurement that promote the growth in renewable energy capacity at the local level and reduce fossil fuel dependency, with the goal of combating climate change.
3. Developing and administering customer programs that encourage clean energy adoption by CPA customers.
4. Ensuring fair access to data, particularly as it relates to energy usage, billing, and information needed to develop and administer customer programs.
5. Supporting CPA’s ability to set electric rates and offer programmatic services that are affordable and inclusive for all.
These principles are incorporated throughout the below platform.
Policy Platform
1) Affordability and Local Control
a. Fair rates and cost allocation: CPA will pursue administrative and legislative initiatives that will ensure that non-bypassable charges assessed for CPA customers are fair, and that CPA’s customers are not unnecessarily burdened by non-bypassable charges.
b. Finances: CPA will pursue administrative and legislative initiatives to ensure that CPA is eligible to apply and receive funding made available to the electricity sector for decarbonization, reliability, and affordability purposes, and that CPA’s financial health are not disparately impacted by new regulations.
c. CCA Expansion: CPA will pursue administrative and legislative initiatives to protect CPA’s ability to expand its service to new member agencies. d. Local Control: CPA will pursue administrative and legislative initiatives to protect CPA Board’s authority over CPA’s procurement, rate-setting, and customer program development activities.
2) Power Resources Planning and Procurement
a. Resource Adequacy and Reliability: CPA will pursue administrative and legislative initiatives that will enable CPA to secure capacity resources to meet its reliability obligations, such as initiatives that evaluate the supply of capacity resources available to load serving entities (LSEs), determine the appropriate market mechanisms for LSEs to procure capacity resources, and develop a durable policy framework that encourages all LSEs to construct their fair share of new capacity resources to maintain grid reliability while pursuing decarbonization efforts..
Agenda Page 45
b. Carbon-Free Resources: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to procure carbon-free resources to meet or exceed the needs of CPA’s three product offerings and its long-term carbon-free procurement goal as required by SB 100 and other statutory or regulatory obligations.
c. Renewable Resources: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to procure eligible Renewable Portfolio Standard (RPS) resources to meet the needs of CPA’s three product offerings and its long-term RPS procurement goal as required by SB 100 and other statutory or regulatory obligations.
d. Integrated Resource Plan: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to plan and procure resources to meet various environmental and reliability goals set by state laws and by its Board of Directors, while offering affordable products and programs to serve its customers, including disadvantaged communities.
e. Transmission: CPA will pursue administrative and legislative initiatives that will provide CPA adequate access to transmission capacity to maximize its procurement of RPS-eligible or carbon-free resources that meet various statutory and regulatory requirements.
f. Research & Development: CPA will pursue administrative and legislative initiatives that support the research and development of new energy resources that can be procured to meet the reliability and decarbonization goals set by the State and its Board of Directors.
3) Customer Programs
a. Demand Response, Demand Flexibility and Energy Efficiency: CPA will pursue administrative and legislative initiatives that will enable CPA to pursue demand response programs and opportunities for its customers. b. Zero-emission vehicles: CPA will pursue administrative and legislative initiatives to promote electrification of the transportation sector in response to state and federal goals aimed at increasing the usage of zero emission vehicles.
c. Building decarbonization: CPA will pursue administrative and legislative initiatives that supports the ability of CPA to promote electrification and the reduction of natural gas usage in the building sector.
d. Local Grid Management and Resiliency: CPA will pursue administrative and legislative initiatives that supports the ability of CPA and its member agencies to offer local grid management and resiliency solutions to increase local reliability and adaptability that could protect against power outages and extreme heat.
e. Distributed Energy Resources: CPA will pursue administrative and legislative initiatives that supports the ability of CPA to offer and utilize distributed Agenda Page 46
energy resources as part of its reliability, resiliency and community engagement strategies.
f. Research and Development: CPA will pursue administrative and legislative initiatives that supports the ability of CPA to explore new opportunities related to behind the meter clean energy resources.
4) Data Access
a. Timely and Accurate Access to Customer Data: CPA will pursue administrative and legislative initiatives that will enable CPA to obtain timely and accurate access to its customers’ data to improve billing accuracy and inform the development and implementation of customer programs. b. Fair Fees for Data Management Services: CPA will pursue administrative and legislative initiatives to ensure that the fees due to Southern California Edison for data access and management are fairly assessed based on data needs and potential technological improvements.
5) Diversity, Equity, Inclusion
a. Customer Protection: CPA will pursue administrative and legislative initiatives that supports the protection of all ratepayers, particularly environmental and social justice communities in CPA’s service territory.
b. Supplier Diversity: CPA will pursue administrative and legislative initiatives that supports supplier diversity in CPA’s contracting activities and through women-owned, minority-owned, disabled-veteran-owned, and lesbian, gay, bisexual, and/or transgender owned business enterprises. c. Workforce Development: CPA will pursue administrative and legislative initiatives that supports workforce development with a focus on new stable, well-paying local jobs, and participation in a just transition to a low-carbon economy.
d. Energy Equity: CPA will pursue administrative and legislative initiatives that supports increased access to clean energy technologies, clean energy and contracting jobs, and clean energy opportunities for environmental and social justice communities in CPA’s service territory.
Agenda Page 47
Staff Report – Agenda Item 7
To:
From:
Approved by:
Subject:
Date:
Board of Directors
Christian Cruz, Community Outreach Manager
Ted Bardacke, Chief Executive Officer
Community Advisory Committee (CAC) Report
May 4, 2023
RECOMMENDATION
Receive and file.
MEETING REPORT
Net Energy Metering 3.0 Policy Proposals
In March, the CAC Net Energy Metering (NEM) 3.0 CAC working group convened for its first meetings. NEM is a tariff approved by the California Public Utilities Commission (CPUC) and used by many load-serving entities (LSE) in California to incentivize rooftop solar adoption. In April, the CAC received a presentation on the CPA NEM 3.0 Implementation Proposals, which included the CAC working group feedback.
The CAC supported a recommendation that CPA set its export compensation rate consistent with the Avoided Cost Calculator (ACC) values adopted by CPUC’s NEM 3.0 decision to reduce potential customer confusion and to incentivize increased adoption and deployment of battery storage. In addition, the CAC also recommended that CPA adopt a broad-based storage incentive program to complement NEM 3.0 with additional incentives to increase access and benefits for low-income customers.
FY 2023/2024 Rate-Setting Approach and Budget Priorities The CAC received a presentation on the FY 2023/24 rate approach recommendations and priorities for operating expenses, which included an overview of current and historical CPA staffing levels. CAC members expressed no objections to the Executive Committee’s recommended rate approach for FY 2023/24 to meet CPA financial and Agenda Page 48
Board of Directors Item 7
competitiveness targets. These recommendations included targeting 100% Green Power rates for residential and small business customers to provide a 3% premium to SCE based on total bill comparisons, with Clean Power at a 1% discount to SCE and Lean Power at a 2% discount to SCE; updating product pricing differentials and large commercial and streetlighting rates based on CPA’s current Cost of Service; and setting bill comparisons for customers in new member agencies at the same level as existing communities.
The CAC recommended that staff include additional context or substance in the presentation to the Board as it relates to staff turnover and the steps taken or will be taken by the CPA to retain staff.
ATTACHMENT
1. CAC Meeting Attendance
Agenda Page 49
Action Items and Presentations
January
Building Electrification (Reach Codes)
February
Local Programs Mid-Cycle Review
March
Canceled
April
NEM 3.0 Policy Proposals
FY 2023/24 Rate Setting and Budget
Community Advisory Committee Attendance
2023
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov
East Ventura/West LA County
Angus Simmons ✓ A A
Jennifer Burke ✓ A ✓
Debbie West ✓ ✓ ✓
San Gabriel Valley
Richard Tom A V ✓
Kim Luu A A A
West/Unincorporated Ventura County
Lucas Zucker ✓ ✓ A
Vern Novstrup ✓ ✓ ✓
South Bay
Vacant
Vacant
Gateway Cities
Irella Perez ✓ ✓ A
Genaro Bugarin ✓ ✓ ✓
Westside
Cris Gutierrez A A ✓
David Haake A ✓ ✓
Unincorporated LA County
Neil Fromer ✓ ✓ ✓
Kristie Hernandez X X ✓
✓ - Attended A – Absent X – Medical/Personal Leave
Agenda Page 50
Staff Report – Agenda Item 8
To: Board of Directors
Subject: Closed Session
Date: May 4, 2023
ATTACHMENT
1. Attachments for Closed Session will be forwarded under separate cover.
Agenda Page 51
Staff Report – Agenda Item 9
To: Board of Directors
From: Karen Schmidt, Director, Rates and Strategy
Matthew Langer, Chief Operating Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: FY 2023/24 Rate Setting Approach
Date: May 4, 2023
RECOMMENDATION
Approve a rate setting approach for FY 2023/24:
(a) Set the CPA product price differential between 100% Green Power and Clean Power to 4% and the differential between 100% Green Power and Lean Power to 5%;
(b) Select an option establishing a consistent total bill comparison level for residential and small business rates using SCE’s March 1, 2023 rates1:
I. Option 1 – Minimum Reserve Scenario: Target 100% Green Power rates to provide a 1% discount with Clean Power at a 5% discount and Lean Power at a 6% discount;
II. Option 2 – Moderate Reserve Scenario: Target 100% Green Power rates to provide a 1% premium with Clean Power at a 3% discount and Lean Power at a 4% discount;
III. Option 3 – Midpoint Reserve Scenario (Recommended by Executive Committee): Target 100% Green Power rates to provide a 3% premium 1 These options are all based on total bill comparisons using SCE rates effective March 1, 2023.
Agenda Page 52
Board of Directors Item 9
with Clean Power at a 1% discount and Lean Power at a 2% discount; (c) Update rates for large commercial, pumping and agriculture, and streetlighting rate classes to reflect CPA’s current cost of service (COS)2; (d) Set total bill comparisons for customers in the cities of Hermosa Beach, Monrovia, and Santa Paula at the same total bill comparison levels as customers of the current member agencies.
The rate setting approach will be used to develop detailed rates that will be brought to the Board for approval at its June 1 meeting in conjunction with CPA’s FY 2023/24 budget.
BACKGROUND
FY 2022/23 Rates and Financial Trajectory
CPA’s Board set rates for FY 2022/23 in June 2022 such that 100% Green Power was at a 3% premium compared to SCE’s total bill, Clean Power was at parity to SCE, and Lean Power was at a 1% discount to SCE for most customers. These rates reflected a strong commitment to CPA’s ongoing fiscal strength, including meeting the Board-approved minimum reserve target and achieving an investment-grade credit rating in 2023 while remaining resilient and competitive through ongoing energy market volatility.
As a result of extraordinary energy market events in September, and the December through February period as well as increasing short-term renewable energy prices, CPA’s FY 2022/23 financial results are expected to be below the budget adopted in June 2022. 3 While this is a setback toward achieving CPA’s 2023 fiscal goals, the low-risk approach taken by the Board last year has ensured the market volatility of the last several months has not led to a crisis. The interim rate change adopted by the Board in March brought CPA closer to its fiscal targets for the year while still maintaining strong competitiveness levels compared to SCE.
2 A list of these rate classes is on page 59, below.
3 Absent additional market or unforeseen negative events, CPA is on track to meet the projections outlined in the amended FY 22/23 budget adopted by the Board in April 2023.
Agenda Page 53
Board of Directors Item 9
Competitive Position
In January 2023, SCE raised their generation rates and lowered the Power Charge Indifference Adjustment (PCIA), or “exit fee.” As a result, CPA customers’ bills went down starting in January, and almost all CPA customers received a substantial discount compared to SCE across all CPA energy products.
Due to extreme market events, the Board approved an interim rate adjustment in March 2023 that went into effect on April 1, 2023. This interim rate adjustment utilized an across-the-board percentage increase to all rates, with most CPA customers continuing to receive a total-bill discount compared to SCE.
However, this percentage-based approach resulted in some inconsistencies in bill comparisons and product differentials, as illustrated in the table below.
April 2023 Bill Comparison to SCE
Note: Comparisons are based on representative 2018 PCIA vintage rate schedules and load profiles for each rate class, and SCE rates as of March 1, 2023. Individual customer comparisons vary by specific rate schedule and customer usage.
SCE is planning a June 1 rate change that is expected to increase delivery charges and may increase SCE generation rates, potentially strengthening CPA’s competitive position.
Throughout the rate volatility and other events such as seven of our member agencies changing their default levels to 100% Green, CPA’s customer base has remained stable, with participation rates steady at 93%, the number of active customers growing, and some large corporate and public agency customers returning to CPA from other providers.
Rate Class Lean Power Clean Power 100% Green
Power
Residential -5.8% -4.6% -1.0%
Residential CARE -8.6% -6.8% -6.8%
Small Business -3.5% -2.3% +1.4%
Agenda Page 54
Board of Directors Item 9
Reserves, Liquidity and Credit Rating Goals
A credit rating is an opinion published by an independent rating agency (e.g., S&P, Moody’s, and Fitch) that assesses the likelihood an entity will repay its debts. Entities with an investment-grade rating are considered the best credit risks and can attract financing at the lowest cost and from the greatest number of lenders and investors.
Achieving an investment-grade (IG) credit rating is an important milestone for CPA and was a key driver for the Board’s last annual rate setting in June 2022. Building reserves and liquidity (cash and unused lines of credit) are critical for achieving an IG credit rating.
The key metric for liquidity is Days Liquidity on Hand (DLOH). CPA is currently at the low end of the “adequate” range and projects to stay within the adequate range by the end of the fiscal year at 88 DLOH as of June 30, 2023. Staff believes that CPA would need to be at least in the middle of the “strong” range (i.e. above 120 DLOH) to receive an IG credit rating.
Investment-grade Credit Ratings and Days Liquidity on Hand Risk Factor Metric Extremely
Strong
Very
Strong Strong Adequate Vulnerable Highly Vulnerable
Liquidity Days Liquidity on
Hand (days) >=270 150-270 90-150 45-90 15-45 <=15
Indicative Credit Rating High IG Medium IG Low IG Sub-IG CPA’s Board-approved reserve target is 30% to 50% of annual expenses. Projected reserves as of June 30, 2023 are 22% of annual expenses. Reaching the midpoint of that target, 40%, can accelerate CPA’s progress toward securing an IG credit rating as well as provide a buffer against market volatility and seasonal volatility in cash flows.
DISCUSSION
The favorable competitive environment in 2023 presents an opportunity to accelerate progress towards achieving mid- and long-term strategic financial goals in FY 2023/24 while maintaining a strong value proposition and ensuring resilience through continuing market volatility.
Agenda Page 55
Board of Directors Item 9
Staff’s recommended FY 2023/24 rate approach has four components:
1. Product pricing differentials
2. Total bill comparison levels
3. Update to subset rates
4. Rate approach for new member communities enrolling in 2024 Product Pricing Differentials
For FY 2022/23 the Board adopted product pricing differentials where 100% Green Power was priced 3% higher than Clean Power and 4% higher than Lean Power based on total bill comparisons. Staff’s COS analysis indicates a widening of the product price differential with the main driver being the increased cost of short-term renewable energy, offset in part by rising energy prices overall. Staff recommends setting the FY 2023/24 price differential between 100% Green and Clean to 4% and the differential between 100% Green and Lean to 5% to more closely follow the current COS.
These product differentials assume the following product content: (i) 100% Green Power:
100% renewable; (ii) Clean Power: 50% renewable; and, (iii) Lean Power: 40% clean energy including 20-25% renewable and 15%-20% sourced from zero-carbon large hydropower.
Bill Comparison Levels
Staff developed a range of options for bill comparison levels for residential and small business customers, who collectively represent over 99% of CPA customer accounts.
The options are framed in terms of meeting the Board’s operating reserve target range and the liquidity level (as measured by DLOH) needed to position CPA to secure an IG credit rating. Bill comparisons will be competitive with SCE and well within CPA’s historical rate comparison ranges under all scenarios based on current SCE rates. Unlike the April rate change where comparisons varied by rate class, in each scenario, staff recommends setting rates for residential and small business customers at consistent Agenda Page 56
Board of Directors Item 9
comparisons to SCE. The Executive Committee supported Option 3, the Midpoint Reserve Scenario.
FY 2023/24 Bill Comparison Scenarios
Note: Comparisons are based on representative 2018 PCIA vintage rate schedules and load profiles for each rate class, and SCE rates as of March 1, 2023. Individual customer comparisons vary by specific rate schedule and customer usage.
See Appendix for detailed bill comparisons for residential and small business customers on each option.
Option 1: Minimum Reserve Scenario
This option would place residential and small business rates at similar levels as April 1, 2023 rates, with 100% Green Power at a 1% discount to SCE, Clean Power at 5% discount to SCE, and Lean Power at a 6% discount to SCE. This would result in either no change or a small reduction to residential customer bills. It would result in a projected $160 million contribution to CPA’s net position, operating reserves at the minimum Board-approved level of 30%, and 111 DLOH as of June 30, 2024. Staff believes that this option would provide only a minimal buffer against energy market and seasonal cash flow volatility and would not put CPA in a sufficiently strong position to secure an IG credit rating this year.
Option 2: Moderate Reserve Scenario
This approach sets 100% Green Power at a 1% premium to SCE, with Clean Power at a 3% discount to SCE and Lean Power at a 4% discount to SCE based on the COS product differentials. This would result in an average bill increase of approximately $3-4 per billing month for residential customers. Projected contribution to net position would be $225 million, with a 131 DLOH projected as of June 30, 2024, providing a moderate financial Agenda Page 57
Board of Directors Item 9
buffer and a moderate risk to CPA’s chance of getting an IG rating.
Option 3: Midpoint Reserve Scenario (recommended by Executive Committee) This approach sets 100% Green Power at a 3% premium to SCE, with Clean Power at a 1% discount to SCE and Lean Power at a 2% discount, based on COS product differentials. This would result in an average bill increase of approximately $7-8 per billing month for residential customers. Projected contribution to net position is $290 million, with 40% operating reserve (the midpoint of the Board-approved target of 30% to 50%) and 148 DLOH projected as of June 30, 2024. Staff believes that this option provides a buffer against market volatility and seasonal fluctuations in cash flow and maximizes CPA’s chance of receiving an IG rating in the next year while still maintaining favorable rate comparisons.
Subset Rates
Most large commercial and industrial, pumping and agricultural, and streetlighting rates, referred to internally as “subset” rates4, have been based on COS since 2019. Fewer than 9,900 or less than 1% of CPA customers are on subset rates.
Bill comparisons relative to SCE for subset rates have steadily improved since 2019.
Under the bill comparison options presented above, many subset customers would have at least one option that is less expensive than or very close to SCE rates. 4 Subset rates include TOU-8 and TOU-GS-3 rate classes for customers in Rolling Hills Estates, South Pasadena, and unincorporated Los Angeles County. Subset rates include TOU-8, TOU-GS-3, TOU-PA-2, TOU-PA-3, and LS-1 rate classes in all other parts of CPA’s service territory. The variation is due to those customers having different PCIA vintages.
Agenda Page 58
Board of Directors Item 9
FY 23/24 Bill Comparison Scenarios – Subset Rates
Note: Comparisons are based on representative 2018 PCIA vintage rate schedules and load profiles for each rate class, and SCE rates as of March 1, 2023. Individual customer comparisons vary by specific rate schedule and customer usage.
New Member Community Rate Approach
Customers in three new CPA member agencies – Hermosa Beach, Monrovia, and Santa Paula – will be placed on SCE’s 2023 vintage PCIA rates when CPA begins service in March 2024. Together these three communities represent approximately 4% of CPA’s annual electric consumption.
The residential 2023 PCIA is currently 1.6 cents per kilowatt-hour (c/kWh), compared to -0.4 c/kWh for the 2018 PCIA that most CPA customers pay. Based on the current 2023 PCIA, residential customer bills in the new member communities would be about 6% higher than existing customer bills and higher than SCE base rates if they were placed on the same generation rates as existing customers.
Staff recommends setting rates for new member communities to provide the same bill comparisons as existing communities for at least the first year of service, and delegating to staff the ability to adjust the rates if needed to ensure consistent bill comparisons between new and existing customers in case SCE rates change within FY 2023/245.
At these rates, CPA expects to recover the cost to serve the new member communities 5 SCE typically implements its annual update to the PCIA in the first quarter of the year. In 2024, this would be right in the middle of the enrollment process for new communities. Delegating authority to staff to adjust rates as SCE changes the PCIA will ensure rate comparisons remain consistent throughout the enrollment process.
Agenda Page 59
Board of Directors Item 9
and anticipates that the spread between 2018 and 2023 vintage PCIA rates could be smaller in 2024 which would reduce the impact of the PCIA differential.
Summary of Options and Recommendations
The Executive Committee supported staff recommendations as described below on product pricing differentials, subset rates, and new member community rates, and recommended that the Board adopt Option 3 – Midpoint Reserve Scenario – for residential and small business bill comparison targets:
• Product pricing differentials: Set the product price differential between 100% Green and Clean to 4% and the differential between 100% Green and Lean to 5% • Bill comparison levels: Select consistent bill comparison levels for residential and small business rates to support competitiveness and financial goals o Option 1 – Minimum Reserve Scenario: projected 30% reserve; o Option 2 – Moderate Reserve Scenario: projected 35% reserve; o Option 3 – Midpoint Reserve Scenario: projected 40% reserve; – recommended by Executive Committee
• Update subset rates: Update streetlighting, pumping and agricultural, and large commercial and industrial subset rates to reflect current COS • Rate approach for new member communities: Set bill comparisons for new member communities at the same level as existing communities and authorize staff to update rates if needed for these customers to ensure consistent comparisons between new and existing customers throughout FY2023/24.
Community Advisory Committee Input
Staff presented the rate approach options to the Community Advisory Committee on April 20, 2023. The CAC expressed no objections to the Executive Committee’s recommendation to adopt Option 3 on bill comparison levels and staff recommendations Agenda Page 60
Board of Directors Item 9
on product pricing differentials, subset rates, and rates for new member communities.
NEXT STEPS
At the June Board meeting, staff will present detailed rates schedules based on the approved rate setting approach and CPA’s budgeted revenue requirement. CPA’s financial projections will be updated prior to the June Board meeting which may result in small changes to subset rates, projected contribution to net position, reserve %, and days liquidity on hand.
ATTACHMENTS
1. Appendix
2. FY 2023/24 Rate Setting Approach Presentation
Agenda Page 61
Board of Directors Item 9
APPENDIX
FY 23/24 Bill Comparison Scenarios – Residential Customers Note: Comparisons are based on representative 2018 PCIA vintage Domestic rate schedule and load profile, and SCE rates as of March 1, 2023. Individual customer comparisons vary by specific rate schedule and customer usage.
FY 23/24 Bill Comparison Scenarios – Small Business Customers Note: Comparisons are based on representative 2018 PCIA vintage TOU-GS-1 rate schedule and load profile, and SCE rates as of March 1, 2023. Individual customer comparisons vary by specific rate schedule and customer usage.
Agenda Page 62
Item 9 - FY 2023/24
Rate Setting Approach
May 4, 2022
Agenda Page 63
Summary
In March the Board adopted interim rates that went into effect on April 1, 2023, in advance of CPA’s regular annual rate setting, to address extraordinary market conditions over the past fall and winter
A favorable competitive environment with SCE presents an opportunity to accelerate progress towards achieving mid- and long-term strategic financial goals in FY 2023/24 while maintaining a strong value proposition and ensuring resilience through continuing market volatility
Staff is requesting that the Board adopt a rate setting approach that will guide the FY 2023/24 rates and budget scheduled to be adopted by the Board in June Staff are updating energy cost projections which may impact the estimated financial metrics of the rates options presented today
Agenda Page 64
November 2022 – May 2023 (Staff) – FY 2023/24 rate planning; cost of Service study, energy cost projections, load forecasting, and budgeting (ongoing) November 3, 2022 (Board) – First Look at 2023 PCIA and SCE Rates February 2, 2023 (Board) – Energy Market Update and Rate Adjustment Options March 2, 2023 (Board) – Adoption of April 2023 Interim Market Rate Adjustment April 6, 2023 (Board) – FY 2023/24 Rates Outlook
April 19, 2023 (Executive Committee) – Request direction of FY 2023/24 Rates Approach
April 20, 2023 (Community Advisory Committee) – FY 2023/24 Rates Approach May 4, 2023 (Board) – Request approval of FY 2023/24 Rate Setting Approach June 1, 2023 (Board) – Request approval of Proposed FY 2023/24 Rates 3 FY 2023/24 Rates Process
Agenda Page 65
Considerations for FY 23/24 Rates
FY 22/23 was more challenging than expected due to extraordinary market events in the second half of 2022 and early 2023
The April interim rate adjustment allowed CPA to get closer to its fiscal goals for the current year, but progress toward CPA’s Reserve Policy targets has been slower than expected A favorable competitive environment presents an opportunity to accelerate progress towards achieving mid- and long-term strategic financial goals while balancing other factors:
o Make significant progress toward Board-approved reserve and liquidity targets o Prepare to achieve an investment-grade credit rating
o Prepare for a competitive environment that could be less favorable in 2024 o Maintain CPA’s competitive position and overall value proposition o Prepare for upcoming default changes and new member enrollments o Ensure financial resilience through continuing energy market volatility Agenda Page 66
Product and rate class pricing differentials
Bill comparison levels
Subset rates update
Rate approach for new communities enrolling in 2024
5 FY 23/24 Rate Approach Recommendations
Agenda Page 67
Product Differentials
CPA’s most recent cost of service analysis indicates a widening of the product price differential amongst CPA’s three rate products
o The main driver for this widening is the increased cost of short-term renewable energy o Increased energy costs partially mitigate the widening of the differentials between the three rate products
For FY 2022-23, the Board adopted product differentials where 100% Green was priced 3% higher than Clean and 4% higher than Lean
Staff recommends setting the FY 23/24 price differential between 100% Green and Clean to 4% and the differential between 100% Green and Lean to 5% to more closely follow the current cost of service
o These product differentials assume the following product content: 100% Green Power: 100% renewables; Clean Power: 50% renewables; Lean Power; 40% clean energy including 20-25% renewables and 15% - 20% sourced from zero-carbon large hydropower Agenda Page 68
6 Aligning Rate Class Differentials
The April rate adjustment utilized an across -the-board percentage increase to all rates resulting in some inconsistencies in bill comparisons and product differentials 7 Note: Comparisons are based on representative 2018 PCIA vintage rate schedules and load profiles for each rate class, and SCE rates as of March 1, 2023. Individual customer comparisons vary by specific rate schedule and customer usage.
Rate Class Lean PowerClean Power 100% Green Power
Residential -5.8% -4.6% -1.0%
Residential CARE -8.6% -6.8% -6.8%
Small Business -3.5% -2.3% 1.4%
April 2023 Bill Comparisons to SCE
Staff recommends making bill comparisons consistent across residential and small business rate classes based on the Board’s selected FY 23/24 rate approach Agenda Page 69
FY23/24 bill comparison options
The options offer a range of potential outcomes for CPA’s competitiveness, financial and rate stability objectives
8 Scenario
Residential/Small Business
Rate Comparison to SCE Estimated Financial Metrics at End-FY24 Lean Power Clean Power 100% Green
Power
Contribution
to Net
Position
Reserve %
Days Liquidity
on Hand
(DLOH)
1. Minimum Reserve -6.0% -5.0% -1.0% $160M 30% 111
2. Moderate Reserve -4.0% -3.0% 1.0% $225M 35% 129
3. Midpoint Reserve -2.0% -1.0% 3.0% $290M 40% 148
FY 2023/24 Bill Comparison Scenarios
Note: Comparisons are based on representative 2018 PCIA vintage rate schedules and load profiles for each rate class, and SCE rates as of March 1, 2023. Individual customer comparisons vary by specific rate schedule and customer usage.
Board approved reserve target is 30% to 50% of operating expenses. Staff anticipates that at least 120 DLOH will be required to achieve and a mid level investment grade credit rating. An incremental $80M line of credit would increase DLOH by 23 days for all scenarios.
Staff are updating energy cost projections which may impact the estimated financial metrics of these rate approach options
Agenda Page 70
Total Bill Comparison Ranges – Residential
FY 23/24 Bill Comparison Scenarios – Residential Customers Scenario SCE base
Average Monthly Bill Comparison to SCE
Lean Clean 100% Green Lean Clean 100% Green
April 2023 rates $192 $180 $183 $190 -5.8% -4.6% -1.0%
1. Minimum Reserve $192 $180 $182 $190 -6.0% -5.0% -1.0%
2. Moderate Reserve $192 $184 $186 $193 -4.0% -3.0% 1.0%
3. Midpoint Reserve
(recommended by
Executive Committee)
$192 $188 $190 $197 -2.0% -1.0% 3.0%
Bill comparisons will be competitive with SCE under all scenarios based on current SCE rates SCE’s June 1 rate change is expected to increase delivery charges and may increase SCE generation rates, potentially strengthening CPA’s competitive position Note: Comparisons are based on representative 2018 PCIA vintage Domestic rate schedule and load profile and SCE rates as of March 1, 2023.
Individual customer comparisons vary by specific rate schedule and customer usage.
Agenda Page 71
Subset Rates
FY 23/24 Rate Scenarios – Sample of Subset Rates
Rate Schedule
1. Minimum Reserve Scenario 2. Moderate Reserve Scenario 3. Midpoint Reserve Scenario Lean Clean 100% Green Lean Clean 100% Green Lean Clean 100% Green TOU-GS-3-D -1.0% 0.2% 5.0% 1.5% 2.7% 7.5% 4.0% 5.2% 10.0% TOU-8-D-SEC -1.0% 0.3% 5.2% 1.6% 2.8% 7.8% 4.1% 5.4% 10.4% TOU-PA-2-D -5.8% -4.5% 0.2% -3.3% -2.0% 2.7% -0.8% 0.4% 5.2% TOU-PA-3-D -5.2% -3.8% 0.9% -2.7% -1.4% 3.4% -0.2% 1.1% 6.0% LS-1 11.3% 12.5% 17.4% 13.8% 15.1% 20.0% 16.4% 17.6% 22.6% Large commercial and industrial, pumping and agricultural, and streetlighting rates, referred to internally as “subset” rates, have been based on cost of service since 2019; less than 9,900 or 1% of CPA customers are on subset rates.
Bill comparisons for subset rates have improved over time Note: Comparisons are based on representative 2018 PCIA vintage rate schedules and load profiles for each rate class and SCE rates as of March 1, 2023. Individual customer comparisons vary by specific rate schedule and customer usage.
Agenda Page 72
New member community rate approach
Customers in Hermosa Beach, Monrovia, and Santa Paula will be placed on SCE’s 2023 vintage PCIA rates when CPA begins serving them in March 2024. Together these new communities will represent approximately 4% of CPA’s annual electric consumption.
Staff recommends setting total bill comparisons for customers of these new member communities at the same level as customers of current member communities for at least the first year of service and delegating to staff the ability to adjust the rates if needed to ensure consistent comparisons as SCE rates change within FY 23/24
The residential 2023 PCIA is currently 1.6 cents/kWh, compared to -0.4 cents/kWh for the 2018 PCIA. Based on the current 2023 PCIA, residential customer bills in the new member communities would be about 6% higher than existing customer bills and higher than SCE base rates if they were placed on the same generation rates
CPA expects to recover the cost to serve the new member communities if their rates are set to match the bill comparisons for existing communities
o The spread between 2018 and 2023 vintage PCIA rates may be smaller in 2024 which would reduce the impact of the PCIA differential
Agenda Page 73
11 Product pricing differentials: Set the product price differential between 100% Green and Clean to 4% and the differential between 100% Green and Lean to 5% Bill comparison levels: Select bill comparison levels for residential and small business rates to support competitiveness and financial goals
o Option 1 – Minimum Reserve Scenario: no change or small bill reduction o Option 2 – Moderate Reserve Scenario: $3-4 approx. bill increase o Option 3 – Midpoint Reserve Scenario: $7-8 approx. bill increase – recommended by Executive Committee
Update subset rates: Update streetlighting, pumping and agricultural, and large commercial and industrial subset rates to reflect current cost of service Rate approach for new member communities: Set bill comparisons for new member communities at the same level as existing communities and authorize staff to update rates if needed for these customers to ensure consistent comparisons between new and existing customers throughout FY 2023/24
12 Recap: FY 23/24 Rate Approach Recommendations
Agenda Page 74
Next Steps
Today, staff is requesting that the Board adopt a FY 2023/24 rate setting approach
Final rate setting and rate schedule approvals will take place at the June Board meeting along with adoption of the FY 2023/24 budget
o This rate setting is mostly technical and will follow the rate approach adopted at the May Board meeting
CPA’s financial projections will be updated prior to the June Board meeting so exact numbers for contribution to net position and days of liquidity on hand will change
Agenda Page 75
Questions
Agenda Page 76
Appendix
Agenda Page 77
Bill Comparison Ranges – Small Business
Small Business Customer Bill Comparisons – FY 23/24 Rate Scenarios Scenario SCE base
Average Monthly Bill Comparison to SCE
Lean Clean 100% Green Lean Clean 100% Green
April 2023 rates $278 $268 $271 $281 -3.5% -2.3% 1.4%
1. Minimum Reserve $278 $261 $264 $275 -6.0% -5.0% -1.0%
2. Moderate Reserve $278 $266 $269 $280 -4.0% -3.0% 1.0%
3. Midpoint Reserve $278 $272 $275 $286 -2.0% -1.0% 3.0% Note: Comparisons are based on representative 2018 PCIA vintage TOU-GS-1 rate schedule and load profile and SCE rates as of March 1, 2023.
Individual customer comparisons vary by specific rate schedule and customer usage.
Agenda Page 78
Credit Rating Metrics
Building liquidity (unrestricted cash and unused line of credit) is critical for achieving an investment grade credit rating
o The key metric for liquidity is Days Liquidity on Hand (DLOH) o DLOH is defined as unrestricted cash and unused lines of credit divided by net operating expenses x 365
CPA is projected to be in “adequate” range with 88 DLOH as of June 30, 2023 Staff believes that CPA would need to be at least in the middle of the “strong” range to receive an IG rating in the next year
Risk Factor Metric Extremely
Strong Very Strong Strong Adequate Vulnerable Highly
Vulnerable
Liquidity Days Liquidity
on Hand (days) >=270 150-270 90-150 45-90 15-45 <=15
Indicative Credit Rating High IG Medium IG Low IG Sub-IG Agenda Page 79
Staff Report – Agenda Item 10
To: Board of Directors
From: Ted Bardacke, Chief Executive Officer
Subject: FY 2023/2024 Budget Priorities
Date: May 4, 2023
RECOMMENDATION
Review FY 2023/2024 budget priorities.
ATTACHMENT
1. Presentation on FY 2023/2024 budget priorities.
Agenda Page 80
Item 10
FY 2023/24 Budget Priorities
May 4, 2023
Agenda Page 81
FY 2022/23 Budget Process
January – April 2023 (Staff) – FY 2023/24 Goal Setting, Departmental Budgeting, Rate Design Planning, Energy Cost Projections & Consolidated Budget Planning (ongoing) April 19, 2023 (Executive Committee) – Budget Priorities April 20, 2023 (Community Advisory Committee) – Budget Priorities April 26, 2023 (Finance Committee) – Budget Priorities & Draft FY 2023/24 Operating Expenses Budget May 4, 2023 (Board) – Budget Priorities
May 17, 2023 (Executive Committee) – Draft FY 2023/24 Budget May 24, 2023 (Finance Committee) – Draft FY 2023/24 Budget June 1, 2023 (Board) – Proposed FY 2023/24 Budget
Agenda Page 82
2 2023/24 Operational Priorities
3 1. Achieve financial targets, including Investment
Grade Credit Rating
2. Meet renewable procurement and GHG
emissions targets
3. Attract, retain and develop high-performing
and diverse staff
4. Develop and deliver impactful customer
programs, including mid-term strategic review
5. Maintain customer participation rates, with
particular emphasis on agencies changing their
default rates and new communities
6. Comply with or surpass regulatory and legal
obligations
7. Update and Implement Data and Systems
Strategic Plan
8. Implement DEI plan
9. Establish and improve processes
10. Lead and shape regulatory and policy
discussions
11. Plan for future success, including long-term rate
product strategy
Agenda Page 83
Operating Expense Context
4 Energy market risks continue to be elevated as California continues to experience significant heat events and available electricity supply remains constrained CPA manages ~$1.24 billion of annual energy costs (96% of total costs) which includes contracting for and optimizing long-term renewable and storage projects involving billions of dollars of financial commitments
Regulatory, political and public relations opportunities and scrutiny are multiplying as CPA is now the 3rd largest Load Serving Entity in the California Independent System Operator balancing area and one of the largest suppliers of renewable energy in the country An expanding suite of customer programs requires CPA to enhance its ability to acquire and retain customers and develop technical expertise in new and innovative areas CPA has limited ability to impact rates in the short term through adjustments to operating expenses (4% of total costs) but can increase impact and reduce risk through these investments Agenda Page 84
Operating Expenses Overview
5 Budgeted operating expenses (4% of total costs) are set to increase by ~25% driven by investments in staffing and customer programs
Budgeted operating costs for areas other than staffing and customer programs will be flat or decline year over year
One-fourth of budgeted operating expenses are fixed by regulatory, contractual, or policy obligations Over the past 12 months, CPA has added staff capacity across the organization (20 new/14 net). These resources have improved internal performance and capacity, slowed the rate of staff attrition, and leveled off consultant and other spending
Expanding customer programs and local assistance is an organizational priority while consolidating the benefits of staffing progress is dependent on continuing to invest in staff retention and talent acquisition.
Agenda Page 85
6 100% Reimbursable
Power Share/Community Solar – (CPUC funded, including staffing) Electrification Workforce Development (PPA Community Benefits funded) Leverage State/Federal Resources
Electric Vehicle Charging ($1.5 million in CPA investment leveraged $21 million in state funds) Electrification Advisor (New - $377k, assist customers with accessing federal incentives) Strategic with long-term ROI or community benefits potential Power Response/Demand Response (Ongoing)
Power Ready/Backup Power (Ongoing)
Building Electrification Code Incentives (Ongoing)
Local Government Program (New – $2.7 million)
Customer Energy Storage (New - $981k, to complement NEM tariff adjustments) Customer Programs
Agenda Page 86
Customer Programs Detail
7 Expenses related to customer programs fall into Customer Programs (incentives and implementer costs), Staffing, Communications, Mailers, Data Manager, Technical Services and Other services budget line items.
Costs associated with Workforce development and the PowerShare/Community Solar programs are funded by third parties
A B C D E F G H I J K
Customer
Programs Team
Staffing Costs Customer Programs Communications Mailers Data Manager Other Services Technical
Services Total % of Total
Reimbursable costs
/ 3rd party Funding
Customer
Program
Expenses,
Net
100% Reimbursable
Power Share/Community Solar (CPUC) 432,000 2,065,000 106,000 14,000 74,000 32,000 2,723,000 23% 2,723,000 - Workforce Development 516,000 11,000 527,000 4% 516,000 11,000 Electric Vehicle Charging (CALeVIP LA & Ventura) 1,241,000 26,000 1,267,000 11% - 1,267,000 Power Response/Demand Response 1,427,000 300,000 35,000 1,762,000 15% - 1,762,000 Power Ready/Backup Power 26,000 66,000 92,000 1% - 92,000 Building Electrification Code Incentives 351,000 11,000 362,000 3% - 362,000 Electrification Advisor (new) 370,000 7,000 377,000 3% - 377,000 Local Government Program (new) 2,710,000 26,000 7,000 2,743,000 23% - 2,743,000 Solar + Storage program (new) 963,000 11,000 7,000 981,000 8% - 981,000 Others 108,000 55,000 163,000 1% - 163,000
1,042,000 1,042,000 1,042,000
Total 1,474,000 9,643,000 625,000 70,000 74,000 32,000 121,000 12,039,000 91% 3,239,000 8,800,000 Budget Line Item
Strategic with long-term ROI or community benefits potential Leverage State Resources
Non reimbursable staffing costs
Agenda Page 87
Staffing - Context
8 2022/23 budgeted headcount of 70 (including one mid-year add). Current headcount = 62 Turnover rates are improving but remain disproportionately high within mid-level management
Jan 2021 to March 2022 – Hired 35/Net gain of 14
April 2022 to March 2023 – Hired 20/Net gain of 14
Consolidating the benefits of staffing progress is dependent on continuing to invest in staff retention and talent acquisition
New positions address growth areas and reflect the increasing complexity brought on by success (see slide 15)
Continue to have favorable/leading comps within CCA industry (see slide 10) Agenda Page 88
Initial Staffing Budget Projection
9 Initial budget projects staffing costs to increase 43%, from 1.2% of total revenue in Amended FY2022/23 to a still industry-leading 1.3% of revenue in the upcoming year FY 2023/24 Staffing Cost Detail $ % of Increase
FY 2022/23 Budget 13,976,000
es, COLA, Merit Increases 1,939,000 32%
COLA (5%) 734,000 12%
Merit/Promotion (8.5%) 890,000 15%
Retention Incentive 1,000,000 17%
New Positions 1,433,000 24%
Subtotal Increase 5,996,000 100%
FY 2023/24 Budget Total 19,972,000
YOY % Increase 43%
Full year impact of 22/23 New Hires, COLA, Merit Increases Placeholder – Structure
Under Development
Up to 9 new positions
The staffing budget does not include an allowance for staff turnover and as in previous years, actual staffing expenses are expected to come in under budget.
Agenda Page 89
Select CCA Metrics and Comparisons
10 CPA’s metrics for operating expenses and staffing costs compare favorably with industry averages FY2023/24 Budget
(in thousands) CPA (Draft) CCA Avg
MCE (Draft)
FY2023/24
Sonoma (Draft)
FY2023/24
3CE
FY2022/23
EBCE
FY2022/23
Total Revenue 1,498,000 563,000 800,000 253,000 429,000 770,000 Total Energy Cost 1,238,000 440,000 666,000 194,000 378,000 524,000 Net Energy Revenue 259,000 123,000 134,000 59,000 51,000 246,000 Staffing 19,972 13,000 19,000 8,000 9,000 16,000
Other Operating Expenses 36,000 24,000 21,000 21,000 31,000 23,000 Total Operating Expenses 56,000 37,000 40,000 29,000 40,000 39,000 Net Income 204,000 86,000 94,000 30,000 11,000 207,000
Staffing (% of…)
Revenue 1.3% 2.3% 2.4% 3.2% 2.1% 2.1%
Cost of Energy 2% 3% 3% 4% 2% 3%
Net Energy Revenue 8% 11% 14% 14% 18% 7%
Total Operating Expenses 36% 35% 48% 28% 23% 41%
Net Income 10% 15% 20% 27% 82% 8%
Total Operating Expenses (% of…)
Revenue 3.7% 6.6% 5.0% 11.5% 9.3% 5.1%
Cost of Energy 5% 8% 6% 15% 11% 7%
Net Energy Revenue 22% 30% 30% 49% 78% 16%
Net Income 27% 43% 43% 97% 364% 19%
Gross Margin 17% 22% 17% 23% 12% 32%
Net Margin 14% 15% 12% 12% 3% 27%
Customer Accounts Served 1,005,000 482,000 581,000 231,000 444,000 672,000 Agenda Page 90
Increased operating expenses arise primarily from increased spending on customer programs and staffing
Operating expense costs for areas other than staffing and customer programs will be flat or decrease
Expanding customer programs and local assistance is an organizational priority while consolidating the benefits of staffing progress requires continued investments in staff retention and talent acquisition
Accounting for past year staffing and turnover improvement plus continuing to invest in retention/development is 76% of the proposed staffing increase; new positions are remaining 24%
CPA continues to compare favorably with other CCAs on operating expenses and staffing
11 Summary
Agenda Page 91
Questions?
Agenda Page 92
13 Current Org Chart
Agenda Page 93
14 Current Org Chart
w/ Proposed New
Positions
Agenda Page 94
Staffing – New Positions Detail
15 2022/23: Budgeted headcount of 70 (including one mid-year add). Current headcount = 62 Staffing Priorities
New positions address growth areas (customer programs/communications/marketing/community & board engagement) and reflect the increasing complexity brought on by success (PPA and prepay settlements/data & load management)
FY 2023/24 New Positions
Work Area Count Position Title
Communication & Mktg 2 Marketing Project Manager, Web Administrator Customer Programs 1 Program Manager, Resiliency & Grants Data & System 1 Analyst, Data and Systems
Executives 1 Deputy Clerk of Board
Finance 2 Senior Load Forecast Analyst, Financial Analyst Government Affairs 1 Legislative and Government Affairs Manager Procurement 1 Analyst, Power Supply
Total 9
- Settlements
Agenda Page 95
Communications Detail
16 Program Marketing Support
Customer Program marketing represents approximately 45% of expected communications expenses Power Share (100% reimbursable) and Power Response require customer acquisition investments Brand Awareness and Reputation Enhancement
Assists with program marketing (customers), recognition among stakeholders, and expansion efforts Event, organizational sponsorships, and CBO Grants for hard-to-reach populations (CAC priority) Communications Consultants will be reduced if new positions are approved and new staff can be hired in a timely manner 2022/23 2023/24
2023/24
Diff $
2023/24
Diff %
Advertising 435,000 694,000 259,000 60%
Communication Consultants 1,126,000 965,000 (161,000) -14% Sponsorships 100,000 147,000 47,000 47%
Website 144,000 239,000 95,000 66%
Communication - Others 18,000 32,000 14,000 78%
Special Events 25,000 132,000 107,000 428%
CBO Grants 170,000 31,000 (139,000) -82%
Communication & Outreach 2,018,000 2,240,000 222,000 11% Third Party Funding
AMP - - - 0%
Power Share (CPUC Funding) (366,500) (106,000) 260,500 -71% Power Ready (38,800) (26,000) 12,800 -33%
Power Response (363,800) (300,000) 63,800 -18%
Building Electrification (25,900) (11,000) 14,900 -58%
CalEVIP (LA & Ventura) (85,000) (26,000) 59,000 -69%
Local Government Program - (26,000) (26,000) 0%
Storage & Battery - (11,000) (11,000) 0%
Workforce Development (25,900) (11,000) 14,900 -58%
Others - (108,000) (108,000) 0%
Communication Costs net of Funding 1,112,100 1,615,000 502,900 45% Agenda Page 96
Staff Report – Agenda Item 11
To: Board of Directors
From: Gabriela Monzon, Clerk of the Board
Nancy Whang, General Counsel
Approved by: Ted Bardacke, Chief Executive Officer
Subject: Election of One Los Angeles County At-Large Position on the Executive Committee
Date: May 4, 2023 (Continued from the April 6, 2023 meeting)
RECOMMENDATION
Elect a Los Angeles County At-Large member of the Executive Committee to a term ending June 30, 2024.
BACKGROUND/DISCUSSION
At the March 2, 2023 Board of Directors meeting, Board Chair Julian Gold opened the nomination period for a vacancy in the Los Angeles County At-Large position on the Executive Committee, created when Director Deborah Klein Lopez was appointed as Chair of the Legislative and Regulatory Committee.
The nomination period for the At-Large position closed on Friday, March 10, 2023. The following nominations were received:
1. Cedric Hicks, Carson
2. Jeff Maloney, Alhambra
Both nominees meet the eligibility criteria. Both candidates submitted statements to provide all voting Directors with information that they may wish to consider prior to casting their votes. (Attachment 2)
Agenda Page 97
Board of Directors Item 11
At its April 6, 2023 meeting, the Board of Directors continued this item. The conclusion of this item will take place at the May 4 Board meeting. The term for this At-Large position will conclude on June 30, 2024 concurrent with the term of the Board Chair.
Election Procedures
The Los Angeles County At-Large position must be elected by Regular Directors representing jurisdictions in Los Angeles County. Alternate Directors may not vote in the election of At-Large Executive Committee positions.
Votes that were previously cast by Board members present at the April 6 meeting will be counted in the tally for the May 4 election. All remaining Los Angeles County Regular Directors may cast their votes using the Voting Form provided as Attachment 1. Voting Forms must be submitted in person by the Regular Director to CPA staff commencing at the start of the May 4 Board meeting up until the item is called. These forms will be transmitted to the Board Clerk. Votes will be tallied during the Board’s consideration of this item.
ATTACHMENTS
1. Voting Form
2. Candidate Statements
Agenda Page 98
Voting Form Completion Instructions
This voting form may be submitted to CPA Staff at the following locations before or during the Board’s consideration of the election item on Thursday, May 4, 2023.
Locations Room CPA Staff Contacts
CPA Office
801 S. Grand Ave, Suite 400
Los Angeles, CA 90018
N/A Gabby Monzon
Calabasas City Hall
100 Civic Center Way
Calabasas, CA 91301
Council Conference Room Alexis Rizo
South Bay Cities COG
2355 Crenshaw Blvd., Suite
125
Torrance, CA 90501
Conference Room Mili Shah
JW Marriot Desert Springs
74-855 Country Club Drive
Palm Desert, California
Director 2 Conference
Room
Gina Goodhill
Please be sure to sign your Voting Form to certify your vote and return to CPA staff at the locations listed above. The Voting Form must be submitted in person by the Regular Director.
Agenda Page 99
VOTING FORM
April 2023 CPA Executive Committee At-Large Election
Los Angeles County
Los Angeles County At-Large Member Candidates are listed below.
Vote for no more than one candidate. Mark your selection with an “X” in the box.
Director Cedric Hicks, City of Carson
Director Jeff Maloney, City of Alhambra
Please certify your vote here.
I (name)________________________, am a Regular Director representing a member agency in Los Angeles County.
Signature: ______________________________
Member Agency: ________________________
Agenda Page 100
Cedric L. Hicks Sr, Councilman City of Carson,
Nominee for Executive Board of Clean Power Alliance
1. Please describe your background and history with Clean Power Alliance.
I am a graduate of Los Angeles Harbor College, California State University Fullerton, and am a Distinguished Alum of California State University, Dominguez Hills with a master’s degree in Behavioral Science. I also graduated from the Anderson School of Management at UCLA - Johnson and Johnson Fellows program. I officially retired, after 32-years of day-to-day work, from the City of Compton as the Assistant City Manager.
I was first appointed to the Carson City Council on April 19, 2016, and was re-elected twice on November 8, 2016, and on November 3, 2020. My mission for the City of Carson is to enhance the quality of life of the residents and businesses by ensuring that the City is a safe, thriving, and healthy community with access to clean, reliable, and affordable energy.
I have been a member of the CPA’s Board of Directors since its inception in 2017 and I’ve also served on the Board's Legislative & Regulatory Committee since 2018. I have been an advocate for affordable electricity bills, reduction of GHG emissions, local clean energy projects, and local programs.
2. Please describe the vision and perspective that you would bring to the Clean Power Alliance Executive Committee.
I have been a longtime environmental champion and I believe in an affordable, clean energy future where communities and customers continue to be given a choice in renewable products and programs that work best for them. We are at a critical time in the State’s transition to clean energy and I bring a unique perspective to issues that we are facing today. CPA has grown and flourished into the largest provider of 100% renewable energy in the United States, but we still have a lot more work to do. I will work to ensure that our collective vision for this organization shapes our future decisions.
Carson has the second-largest load share of all the member agencies, and it is one of a few CPA member agencies that is a state-designated disadvantaged community. I know, firsthand, what it takes to serve and support an underserved and diverse customer base.
If I was elected to serve on the Executive Board it would allow me to share insight early in the planning and development process.
I will be the new Chair of the South Bay Cities of Council Government which will help to further CPA’s mission to onboard new members.
The Board has done an exceptional job of establishing a culture of collaboration with Directors and CPA staff members and I will continue to build on that work to help lead this organization.
Agenda Page 101
Jeff Maloney – Executive Committee Candidate Statement
1. Please describe your background and history with Clean Power Alliance.
I was born and raised in the west San Gabriel Valley, attended local schools, and, except for my undergraduate studies at UC San Diego, I have lived in this area my entire life. Politics and public policy have been among my primary interests for many years, especially issues related to the environment and sustainability.
Shortly after graduation from USC Law School, I joined the Mountains Recreation and Conservation Authority, an agency associated with the Santa Monica Mountains Conservancy ("Conservancy") that acquires, restores, and preserves valuable open space habitat and recreational lands around Los Angeles. In 2013, I became Chief Counsel of the Conservancy and have continued to help lead the Conservancy in its preservation and restoration efforts.
In 2016, I was elected to the Alhambra City Council, largely on a platform of environmental reform, expansion of open space and parks, and social and economic equity. As a new Councilmember, I spearheaded the effort for Alhambra to join the Clean Power Alliance (at that point known as Los Angeles Community Choice Energy). I am proud to have led that effort and I was honored when my colleagues unanimously supported my proposal.
I have enjoyed serving as Alhambra's primary or alternate representative to the CPA board since 2017. In 2021, I joined the CPA Energy Committee, helping to review and make recommendations for new power purchase agreements. Last year, while serving as Mayor, I supported moving Alhambra to CPA's 100% Green Power tier, which was approved unanimously.
The majority of my professional and political career has been dedicated to environmental sustainability. I consider my involvement with CPA to be a core part of my work in the sustainability field and I would be honored to continue to serve this agency as a member of the Executive Committee.
2. Please describe the vision and perspective that you would bring to the Clean Power Alliance Executive Committee.
I believe that climate change is an existential threat to humanity. Air, water, and soil pollution is causing untold damage to public health. As a father of two young children, I am concerned for our future and I believe our society's dependence on fossil fuel - an outdated 20th century technology - must end. This is why I am fully committed to the mission and objectives of CPA and I strongly support CPA's current trajectory.
Since its inception, CPA has successfully fulfilled its stated objectives of providing clean power to its customers, becoming financially solvent, and investing in our communities - more often than not ahead of schedule. Our success is a testament to the talent, commitment, and drive of our leadership, staff, and board. I am proud to be a part of this incredible organization.
Agenda Page 102
Jeff Maloney – Executive Committee Candidate Statement
Looking towards the future, I will help to ensure that CPA continues to provide reliable, affordable, and sustainable energy to its customers. We must continue to meet our energy goals while quickly transitioning to a 100% greenhouse gas future. Simultaneously, it is crucial that we continue to fulfill our promise to provide our product at a discount in comparison to the default energy provider in our jurisdiction.
We must also rapidly expand programs that provide financial incentives and subsidies to low income customers and communities of color. As a Councilmember in an extremely economically and ethnically diverse community, I know that immigrant, nonwhite, and non-English speakers bear the brunt of climate change and environmental injustice. Statistically, those communities are also often unable or unwilling to take advantage of assistance programs designed for their benefit. It is incumbent upon agencies like CPA to expand its reach to these communities and to ensure that we meet them where they are to ensure better health and environmental outcomes for them and success for CPA's efforts.
Lastly, as the largest provider of 100% renewable energy in the nation, CPA has quickly established itself as a leader in the energy sector. We know that our future may depend on the expansion of what we are doing here in Southern California. I believe we have a responsibility to continue to prove that our success can be scaled up and replicated in communities across the nation and the planet.
Agenda Page 103
Staff Report – Agenda Item 12
To: Board of Directors
From: C.C. Song, Senior Director, Regulatory Affairs
Approved by: Ted Bardacke, Chief Executive Officer
Subject: Summer Reliability
Date: May 4, 2023
Staff will provide a presentation on the item.
ATTACHMENT
1. Presentation on Summer Reliability
Agenda Page 104
Item 12 - Summer 2023
Reliability Landscape
May 4, 2023
Agenda Page 105
Overview
Recap of Summer 2022 Reliability
Factors Impacting Summer 2023
Reliability
CPA’s Plan to Contribute to
Summer 2023 Reliability
Agenda Page 106
2 Reliability in Summer 2022
3 In September 2020 a multi-day heat wave across the Western states almost resulted in rolling blackouts
California narrowly avoided rolling blackouts due to a variety of factors o New resources came online; while IOUs fell short of new procurement targets, CCAs and ESPs conducted sufficient excess procurement to cover the shortfall o Emergency demand response shed significant loads during critical hours, up to 2,000 MW
o Efforts to encourage customer conservation were effective in the critical hours Agenda Page 107
Factors Impacting
Summer 2023
Reliability
Agenda Page 108
Resource Constraints
Recent analysis by CalCCA shows
that resource constraints may
continue at least through 2025
Factors contributing to resource
constraints include:
o Retirement of fossil fuel generators
o Decreased imports due to new
RPS/carbon-free standards outside of
California, increasing demand across
Western US, coal unit retirements,
and more stringent import
requirements into California
o Delays to new resources coming
online due to supply chain and
interconnection issues
o Increasing peak load due to climate
change
5 Source: CAISO
Agenda Page 109
New Strategic Reliability Reserve
AB 205 established the Strategic Reliability
Reserve (SRR), administered by Department of
Water Resources, to provide additional energy
reserves during extreme weather events
The SRR is intended to secure supply that is not
available in the RA market, e.g. resources that do
not meet typical RA requirements like once-through-cooling resources set to retire The intention is for these resources to run very
rarely during emergencies, but with shortages in
the RA market, these resources may be more
heavily used
If not implemented properly, the SRR could have
the unintended consequence of contracting with
resources that would otherwise count for RA
Agenda Page 110
6 Large Hydro Could Be A Positive
Recent years of drought have
meant less large hydroelectric
power to support summer
reliability
The heavy rains between
December 2022 and March 2023
have improved the prospects for
hydro generation in California
Pacific Northwest hydro
conditions, though not as
favorable as those within CA,
remains stable
Lake Mead water remains low,
meaning generation from the
Hoover dam may be somewhat
limited, though water conditions
may improve as snowpack melts
Agenda Page 111
7 CPA’s Plan for
Summer 2023
Reliability
Agenda Page 112
CPA Procurement Efforts
9 CPA has brought online additional 561 MW of new generation, and 380 MW of new battery storage resources since 2018
o 232 MW of new storage achieved COD after June 1, 2022 o CPA anticipates additional 88 MW of new generation and 40 MW storage will be online in summer 2023
The CPA long-term resource portfolio includes 1,200 MW of RPS-eligible resources and 630 MW of storage resources not yet online
Supply chain issues and interconnection may still impact project development, though not at the same scale as the past two years.
Agenda Page 113
CPA’s Power Response Program
Smart Home: Existing program that provides incentives for devices as well as participation. Enrollment is anticipated to grow throughout the second year of deployment
Power Response Home: Open to all residential customers, who receive incentives upon participating in events
Commercial Leaders: A newly launched program to incentivize businesses and public sector customers for reducing their energy use during demand response events.
Multifamily Community: A newly launched program for multifamily buildings that meet affordable housing eligibility requirements can receive smart thermostats and financial incentives for participating in events.
Demand response offerings available for summer 2023
could result in up to 1.4-2.1 MW of Load Reduction
Agenda Page 114
10 Customer Communication for Load Reduction
Based on lessons learned from last summer, CPA is taking early steps to update customers communications in advance of the summer months:
Identify new actions or opportunities for customers, especially member agencies and large commercial/industrial customers
Update communication plans to share tips and tactics on energy savings to align with summer readiness
Update social media content and messaging plan to broader communities Explore mass texting’s potential and feasibility to engage customers during summer reliability events
Agenda Page 115
Summer Readiness Outreach
12 Planned outreach for May:
City managers
Community PIOs and staff
News release with tips to
reduce energy use
CPA will provide visual assets and written copy in English, Spanish and Mandarin to align with Flex Alert and Energy Emergency messaging as well as guidance on how and when to use them.
A streamlined grid communications plan is geared to relieve messaging fatigue by making content more adaptable to extended heat events when residents and businesses are asked to conserve energy.
Agenda Page 116
Near-Term Reliability Policy Issues
The electric grid is vulnerable to disruptions this summer, especially if high heat combines with infrastructure failures
o The Strategic Reliability Reserve may be used more than originally intended Long term planning, coupled with market signals, can spur new resource development and address mid-term reliability events
o While the CPUC contemplates the elements of a long-term procurement program, CPA has sponsored AB 1538, authored by Assemblymember Muratsuchi, to develop an incentive mechanism that can encourage further development of clean energy resources to increase liquidity in the market and improve reliability
Increasing penalties on LSEs will not address the resource shortage o Increasing penalties, or limiting CCAs’ ability to expand their territories, will not create new resource supply
o Providing a penalty waiver process during times when there is short supply can avoid punishing LSEs who have acted in good faith to procure resources
o RA penalties can be directed to fund capacity-related initiatives, such as the Strategic Reliability Reserve, rather than the General Fund
Agenda Page 117
Questions
Agenda Page 118
Management Report
To: Board of Directors
From: Ted Bardacke, Chief Executive Officer
Subject: Management Report
Date: May 4, 2023
Fifth Anniversary Event
CPA will be hosting a 5th Anniversary celebration on June 7 from 11am to 1:30pm in Santa Monica. The program will include participation from some of the early founders of CPA as well as a look ahead at the next five years and the unveiling of CPA’s new brand recognition campaign. Board members have received an invitation – please RSVP by May 17.
Legislative Advocacy
CPA’s sponsored bill, AB 1538 (Muratsuchi), passed out of the Assembly Utilities and Energy Committee 12-2-1 with bi-partisan support. The bill has been amended in several ways to stay consistent with its policy goals. These amendments include: 1) removing the definitions of “eligible resources” that would qualify under the program and instead directing the CPUC to establish a definition, while maintaining that fossil fuel resources could not qualify; 2) directing the CPUC to establish an incentive value that is tied to market value, rather than automatically using the market price benchmark. The amendments also clarified that incentive payments must be used to reduce ratepayer costs.
The bill was originally double referred to both the Assembly Utilities and Energy Committee and the Assembly Natural Resources Committee, however it bypassed the Assembly Natural Resources Committee after the amendments. It now goes to the Assembly Appropriations Committee where CPA expects it will be heard in late May.
CPA has taken an Oppose, Unless Amended position on AB 1373 (Garcia), the legislative vehicle for the Newsom Administration’s budget change proposal that was unveiled Agenda Page 119
Board of Directors Management Report
earlier this year. AB 1373 would make three significant policy changes: 1) establish a central procurement entity in the Department of Water Resources (DWR) and authorize the CPUC order the IOUs or the new DWR entity to procure energy resources on behalf of all Load Serving Entities; 2) it would give the CPUC expanded yet undefined authority over CCA’s procurement autonomy by way of their Integrated Resource Plans; and, 3) it would add a new penalty that LSEs must pay if they do not meet their Resource Adequacy requirements, on top of existing penalties. Together, these changes could severely decrease CCAs procurement autonomy while also increasing ratepayer costs.
CPA is working closely with its trade association, CalCCA, to amend the bill to narrow the scope of the CPE, maintain CCAs autonomy over their procurement and planning, and eliminate penalties that would increase costs without increasing reliability. Amending this bill is a top priority for CalCCA and CPA.
Income Based Fixed Charge Proposal
As highlighted in several news reports, in mid-April the Investor Owned Utilities (IOUs) and other parties made proposals to the California Public Utilities Commission (CPUC) to replace a portion of electricity bill charges that are currently based on the on volume of electricity used with a fixed charge that would vary by income levels. The IOUs were required to make these proposals by AB 205, the wide-sweeping energy bill that passed in conjunction with last year’s decision to authorize the operating extension for the Diablo Canyon nuclear power plant. The legislation also directed the CPUC to authorize the fixed charge by July of 2024; the exact implementation date is unknown.
The income-based fixed charge required by AB 205 came amidst a policy debate that has gained traction as electricity rates have been rising fast in tandem with state decarbonization goals that are pushing for the electrification of transportation and buildings. Within the current delivery rates charged by the IOUs are embedded several costs (including but not limited to wildfire and climate change adaptation, replacement of legacy infrastructure, energy efficiency programs, low-income customer assistance, and rooftop solar subsidies) that have little connection with the amount of energy a customer Agenda Page 120
Board of Directors Management Report
consumes.1 Many ratepayer advocates have argued that these costs should not be part of electricity bill but rather should be funded by California’s general fund or other mechanisms, largely because charging low income customers the same as higher income customers for these basic service needs and public policy goals is a regressive way to pay for them. However the legislature has been reluctant to shift these costs off of electricity rates and onto the general fund, in part because many of these investments are very long-term and/or require stable and consistent spending levels.
AB 205 took a different approach by requiring the CPUC to restructure residential electricity rates so that a portion of these non-volumetric items in the delivery charges are paid for based on income in exchange for an equal overall reduction in volumetric rates.
Under the IOU proposal, residential customers in SCE with household income less than $75,000 annually would see average electricity bills go down, bills for those with annual incomes of between $75,000 and $195,000 would stay about the same, and bills for those making more than $195,000 would go up. In addition to the IOU proposal, several stakeholders made alternative proposals that are skewed towards higher or lower bill impact differentials based on income.2
CPA has not developed a position on the broad policy question at hand. CPA’s rates and competitiveness levels are unlikely to be impacted as long as the CPUC remains true to the legislative intent (and most of the stakeholder proposals, including those from the IOUs) that the restructuring take place entirely within delivery rates rather than touching on generation rates. Staff will be monitoring the CPUC proceeding very closely and potentially intervening to ensure that this remains the case.
Staff will also be developing action plans to address customer communications issues, in particular how CPA will calculate bill comparisons across many different income groups.
Due to the administrative complexity, privacy concerns, and potential for gaming or errors within the income determination process for the fixed charges, it is possible that 1 See “Paying for Electricity in California: How Residential Rate Design Impacts Equity and Electrification” from Next 10 and The Energy Institute at UC Berkeley’s Haas School of Business. https://www.next10.org/publications/electricity-rates-2 2 All income levels cited here are rough estimates based on total household income. Exact income thresholds and how they would be calculated is undefined in the various proposals and particularly problematic from an implementation perspecitve.
Agenda Page 121
Board of Directors Management Report
implementation of the rate restructuring will be significantly delayed and/or subject to alteration by the legislature.
Earth Month Activities
CPA staff attended Earth Day themed events in almost half of our member agencies this past month, culminating in several staff participating in a beach cleanup in Hermosa Beach, one of our new member agencies. These events were an opportunity for CPA to connect with community members and educate customers about CPA, our customer programs, and rate options. CPA staff is available for community events and/or city council presentations throughout the year. Requests can be made via Gina Goodhill, Senior Director, Government Affairs.
Monthly Financial Performance
In February 2023 CPA recorded an operating loss of $5.4 million, an improvement from the prior month and $3.3 million less than an operating loss of $8.8 million that was projected in the FY 2022/23 Amended Budget. February results continued to be negatively impacted by the December – February price spike in natural gas and wholesale electricity prices. CPA remains on track to contribute over $80 million to the net position consistent with the FY 2022/23 Amended Budget.
Customer Participation Rate and Opt Actions
As of April 24, 2023, CPA’s overall participation rate was 93%, unchanged from the previous month. CPA had 1,005,435 active customers, up 325 customers since January.
Opt-out levels for the month – 245 accounts through the fourth week of April – are lower than March and in line with historical norms during the second quarter of the year. New accounts (“move-ins”) were higher than closed accounts (“move-outs”) by 204 customers in April, slight above historical norms for the second quarter of the year. Participation rates and active accounts by jurisdiction are attached to this report.
Customer Service Center Performance
Incoming calls to CPA’s Customer Service Center during April were steady compared to the previous month and slightly lower than compared to typical months in the second quarter of the year. Through April 25, CPA received 964 calls compared to 1,168 calls in Agenda Page 122
Board of Directors Management Report
March and an average of 1,795 calls per month in the second quarter of previous years. 99% of calls were answered within 45 seconds, unchanged from the previous month, and the average wait time was 5 seconds, also unchanged from the previous month.
Contracts Executed Under the Chief Executive Officer’s Authority A list of non-energy contracts executed under the CEO’s signing authority is provided in Attachment 2. The list includes all open contracts as well as all contracts, open or completed, executed in the past 12 months.
ATTACHMENTS
1. February Financial Dashboard
2. Participation Rates by Jurisdiction
3. Non-Energy Contracts Executed under CEO’s Authority
Agenda Page 123
CUSTOMERS
Summary of Financial Results
Definitions:
Accounts: Active Accounts represents customer accounts of active customers served by CPA per Calpine Invoice.
Participation Rate %: Participation Rate represents active accounts divided by eligible CPA accounts YTD Sales Volume: Year-to-date sales volume represents the amount of energy (in gigawatt hours) sold to retail customers Revenues: Retail energy sales less allowance for doubtful accounts Cost of energy: Cost of energy includes direct costs incurred to serve CPA’s load Operating expenses: Operating expenditures include general, administrative, consulting, payroll and other costs required to fund operations Net operating income, also known as earnings before interest, depreciation and amortization (EBIDA), represents the difference between revenues and expenditures before depreciation expense, interest income and expense, and capital expenditures Cash and Cash Equivalents: Includes cash held as bank deposits.
Year to date (YTD): Represents the fiscal period beginning July 1, 2022 YTD
Feb
2023
Financial Dashboard
Note: Numbers may not sum up due to rounding.
Active Accounts
1,005,336
Participation Rate
93.2%
YTD Sales Volume
7,697 GWh
Feb Sales Volume
789 GWh
In February 2023 CPA recorded an operating loss of $5.4 million which was $3.3 million less than an operating loss of $8.8 million projected in the FY 2022/23 Amended Budget. For the year to date, CPA recorded an operating loss of $36.5 million, $10.4 million less than the budgeted operating loss of $46.9 million through February.
February results were negatively impacted by a continuing price spike in natural gas and wholesale electricity prices in February and the impact of recording charges for prior months levied by the California Independent System Operator. Absent these prior period charges, the operating loss in February would have been $3.3 million, $5.4 million less than budgeted.
Year-to-date (YTD) revenue was $769.7 million and the cost of energy was $784 million in line with the Amended Budget. YTD results were negatively impacted by the September 2023 heat wave, gas and energy price shocks beginning in December 2022, higher than budgeted renewable energy costs, prior period costs that were recorded in the current fiscal year, and an expected but still not assessed RA compliance penalty. Operating costs were lower than budgeted primarily as a result of lower spending in general administrative and other service costs and the non-utilization of contingencies.
As of February 28, 2023, CPA had $66.2 million in unrestricted cash and cash equivalents and $79.853 million available on its bank line of credit. CPA is in sound financial health and in compliance with its bank and other credit covenants and remains on track to contribute $84.9 million to the net position consistent with the FY 2022/23 Amended Budget.
Agr/Oth
2%
Com-Lg
19%
Com-Sm
28%
Res
51%
0 20
40 60
80 100
120
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Cash & Cash Equivalents
Unrestricted Restricted
in $000,000's Actual Budget Variance % Actual Budget Variance % Operating Revenues 77.0 76.5 0.5 1% 769.7 769.2 0.5 0%
Cost of Energy 79.5 81.5 -2.0 -2% 784.0 786.0 -2.0 0%
Revenues Less Energy Cost -2.5 -5.0 2.5 50% -14.3 -16.8 2.5 15% Operating Expenses 2.9 3.8 -0.9 -23% 22.2 30.1 -7.9 -26% Operating Income -5.4 -8.8 3.3 38% -36.5 -46.9 10.4 22% Feb Year-to-Date
118
250
378 451 526
609
693 770
1183
0 200
400
600
800
1000
1200
1400
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
in 000,000's
Operating Revenue
Actual Budget
21 20 5 9 21
0 -12 -14
$129
-100
-50
0 50
100
150
200
250
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Revenue Less Energy Cost
Actual Budget
Agenda Page 124
Preferred Energy Option Participation %
100% Green
Clean
Lean
93.0%
94.2%
92.6%
Total 93.2%
OVERALL CUSTOMER STATUS REPORT
PARTICIPATION BY CITY AND COUNTY
Preferred Energy Option Active Accounts Participation % Lean % Clean % 100% Green % Agoura Hills 100% Green 8,086 88.3% 2.2% 0.4% 97.5%
Alhambra Clean 33,987 95.5% 1.5% 98.3% 0.2%
Arcadia Lean 22,551 95.2% 99.8% 0.1% 0.1%
Beverly Hills 100% Green 18,593 97.4% 1.8% 0.1% 98.1%
Calabasas 100% Green 9,724 93.8% 1.9% 0.3% 97.8%
Camarillo 100% Green 28,269 89.7% 1.2% 0.1% 98.8%
Carson Clean 29,289 95.5% 1.3% 98.5% 0.2%
Claremont 100% Green 12,631 91.3% 2.7% 0.3% 97.0%
Culver City 100% Green 19,129 94.7% 4.0% 1.2% 94.9%
Downey Clean 36,719 95.1% 1.6% 98.3% 0.1%
Hawaiian Gardens Clean 3,627 95.5% 1.1% 98.6% 0.3%
Hawthorne 100% Green 28,416 97.2% 0.4% 1.4% 98.2%
Los Angeles County 100% Green 300,209 95.0% 1.9% 38.3% 59.8% Malibu 100% Green 6,965 94.9% 2.9% 0.4% 96.7%
Manhattan Beach 100% Green 15,418 95.7% 2.8% 0.2% 97.0% Moorpark Clean 11,399 85.7% 3.1% 96.4% 0.6%
Ojai 100% Green 3,509 88.7% 6.0% 1.2% 92.8%
Oxnard 100% Green 55,313 92.5% 4.0% 0.9% 95.1%
Paramount Lean 15,625 96.6% 96.4% 2.7% 0.9%
Redondo Beach 100% Green 33,199 96.2% 1.9% 0.1% 98.0%
Rolling Hills Estates 100% Green 3,509 92.2% 7.2% 1.6% 91.2% Santa Monica 100% Green 54,077 93.8% 3.4% 0.8% 95.8%
Sierra Madre 100% Green 4,949 92.1% 5.5% 1.6% 92.9%
Simi Valley Lean 43,268 89.5% 99.6% 0.1% 0.2%
South Pasadena 100% Green 11,626 95.0% 3.8% 0.7% 95.5%
Temple City Lean 12,571 95.8% 99.8% 0.1% 0.2%
Thousand Oaks 100% Green 44,270 83.1% 8.0% 1.6% 90.4%
Ventura 100% Green 43,808 88.9% 4.8% 1.6% 93.6%
Ventura County 100% Green 33,337 87.0% 6.4% 1.3% 92.4%
West Hollywood 100% Green 26,420 96.9% 2.4% 0.4% 97.2%
Westlake Village Lean 3,742 88.4% 99.5% 0.1% 0.5%
Whittier Clean 31,200 94.1% 1.9% 98.0% 0.2%
Total 1,005,435 93.2%
Energy Option Active Accounts Participation %
100% Green
Clean
Lean
620,292
262,882
122,261
61.7%
26.1%
12.2%
Total 1,005,435 100.0%
OVERALL PARTICIPATION BY ENERGY OPTION
April 24, 2023
Agenda Page 125
Vendor Purpose Month NTE Amount Status Notes
LinkedIn Subscription for recruiting platform April 2023 $20,250 Active Lattice
Renewal for Performance management
software April 2023 $9,000 Active
AN Catering Fifth anniversary lunch venue April 2023 $17,444 Active Salesforce
Additional licesnses for Stakeholder
Relationship Management application
subscription
April 2023 $723 Active
Accuweather Weather forecasting March 2023 $10,176 Active goodpr. Event planning services March 2023 $16,000 Active Shute, Mihaly & Weinberger, LLP
Legal Service Agreement (Regulatory,
Administrative, Environmental, Energy
Procurement, Public Contracting, Public
Entity Governance Laws, Issues and/or
Proceedings)
March 2023 $65,000 Active Renewal
Ntooitive Website development March 2023 $20,000 Active Municipal Capital Markets GIC brokerage services February 2023 $38,900 Active Amendment for GIC brokerage services - paid out of Energy Prepay Bond proceeds
Clear Language Company Minute transciption for board meetings January 2023 $20,000 Active Renewal Mercer Retention incentive program development January 2023 $50,000 Active SBCCOG Satellite Board meeting venue January 2023 $50/hr Active Wrike Project management software January 2023 $5,814 Active Ironclad Contract lifecycle management platform January 2023 $16,000 Active PrimeGov Board and committee meeting agenda
management software December 2022 $16,000 Active Renewal DERNetSoft, Inc. Business customer engagement reporting tool December 2022 $53,000 Active
Ion Objects, Inc. IT consulting December 2022 $4,000 Completed Amendment for updated project scope AiQueous, LLC Salesforce implementation December 2022 $7,395 Active Amendment to update scope for project completion
ZGlobal Engineering services December 2022 $50,000 Active Pinnacle Advocacy Lobbying services December 2022 $66,652 Active Omni Government Relations Lobbying services December 2022 $82,492 Active Langan Software development and IT consulting December 2022 $35,000 Active Museum of Ventura County Event space rental for City Manager Lunch December 2022 $825 Completed S&P Credit assessment December 2022 $37,500 Active
Meltwater Media analytics and monitoring services November 2022 $13,750 Active Cision Media/PR wire distribution services November 2022 $2,240 Active NewGen ERRA forecast support November 2022 $11,000 Active Amendment to update scope
of PSA for SCE Green Tariff Shared
Renewable Rate Review
Clean Power Alliance
Non-energy contracts executed under Chief Executive Officer authority Rolling 12 months -- Open contracts shown in Bold
Agenda Page 126
Vendor Purpose Month NTE Amount Status Notes
Clean Power Alliance
Non-energy contracts executed under Chief Executive Officer authority Rolling 12 months -- Open contracts shown in Bold
Sigma Data analytics tool October 2022 $13,000 Active
Language Line Translation services October 2022 $50,000 Active Langan GIS services October 2022 $78,500 Active Second renewal term Mercer Compensation and benefits study refresh September 2022 $75,000 Completed Pickit Digital asset library September 2022 $2,900 Active Salesforce Stakeholder Relationship Management
application subscription August 2022 $15,300 Active
Elite Edge Consulting Accounting services August 2022 $90,000 Active Original Contract Date: September 2020
NTE $112,000
Amendment #1 - NTE for renewals
increased to $120,000 in September 2020
Amendment #2 - First renewal authorized
July 2021 - Extends through 6/30/2022
Amendment #3 - Second (final) renewal
authorized; extends through 6/30/2022
Oscar Associates Recruiting Services August 2022 N/A Active Amendment to reduce placement fees to
25% of starting salary of exclusively
referred candidate
Burke, Williams, Sorenson, LLP
Legal Services Agreement (Brown Act,
public entity governance issues and other
legal services)
July 2022 $100,000 Active Renewal
Hall Energy Law PC Energy Procurement Counsel July 2022 $125,000 Active Renewal Helpmates Temporary staffing services July 2022 N/A Active Baker Tilly Financial audit services June 2022 $50,000 Active IHS Market Subscription for CAISO forecasts June 2022 $15,000 Active MBI Marketing contract renewal June 2022 $7,687 Active 3% increase to Board approved NTE upon renewal
Adobe Inc. AdobeSign Secure Electronic Signature
Service June 2022 $3,200 Active Renewal
Snowflake Inc. Cloud-Native Elastic Data Warehouse
Service June 2022 $25,000 Active Renewal
Fraser Marketing contract renewal June 2022 $55,647 Active 9% increase to Board approved NTE upon renewal
Place and Page Graphic design and branding June 2022 $50,000 Active Informal Development Website development May 2022 $50,000 Active Chapman & Cutler, LLP 2021 Legal Services (CPA's Credit Agreement) April 2022 $55,000 Active Renewal
Polsinelli, LLP
Legal Service Agreement (Employment,
Compliance, General Legal Support related
to Commercial Liability, Risk, and
Mitigation issues)
April 2022 $75,000 Active Renewal
Davis Wright Tremaine Legal services (regulatory) March 2022 $125,000 Active Agenda Page 127
Vendor Purpose Month NTE Amount Status Notes
Clean Power Alliance
Non-energy contracts executed under Chief Executive Officer authority Rolling 12 months -- Open contracts shown in Bold
OpenPath New Office Keycard Access Control
System January 2021 $1,500 Active
Crown Castle Fiber LLC New Office Dedicated Internet Access Service September 2020 $ 18,600 Active
NextLevel Internet, Inc. New Office High Speed Internet Service September 2020 $ 6,936 Active Windstream Services, LLC New Office Telephone Service September 2020 $ 14,095 Active Zero Outages New Office Security, Firewall, & Wi-Fi
Service September 2020 $ 7,608 Active
Agenda Page 128