Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, September 21, 2023
1:30 p.m.
Visit CPA’s YouTube Channel to view a Live Stream of the Meeting www.youtube.com/@CPApublicmeetings
*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 remotely at the following locations:
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Hyatt Regency Sacramento
Sequoia Board Room
1209 L St,
Sacramento, CA 95814
Beverly Hills City Hall
Council Office, 4th Floor
455 N. Rexford Drive
Beverly Hills, 90210
Ventura County Government Center
Point Mugu Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Camarillo City Hall
Office of the Mayor
601 Carmen Drive
Camarillo, CA 93010
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
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 Committee 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 Committee 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, Agenda Page 1
the entire 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 ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from August 16, 2023, Executive Committee Meeting
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
CLOSED SESSION
3. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: 2
REGULAR AGENDA (Continued)
4. Review Draft Agenda for the October 5, 2023, Board of Directors Meeting
5. Review Proposed Expansion Invitations and Provide Input
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT REGULAR MEETING ON OCTOBER 19, 2023
Public Records: Public records that relate to any item on the open session agenda for a Committee 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 Committee. 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 2
Executive Committee Item 1
MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Wednesday, August 16, 2023
1:30 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
CPA Office
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Beverly Hills City Hall
Council Office, 4th Floor
455 N. Rexford Drive
Beverly Hills, 90210
Camarillo City Hall
Administrative Conference Room
601 Carmen Drive
Camarillo, CA 93010
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
Ojai City Hall
Conference Room
401 S Ventura St.
Ojai, Ca 93023
Park James Hotel
1400 El Camino Real
Menlo Park, CA 94025
Ventura County Government Center
Point Mugu Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
CALL TO ORDER & ROLL CALL
Chair Gold called the meeting to order at 1:30 p.m. and Gabriela Monzon, Clerk of the Board, conducted roll call.
Roll Call
Agoura Hills Deborah Klein Lopez Committee Member Remote Beverly Hills Julian Gold Chair Remote
Camarillo Susan Santangelo Committee Member Remote
Carson Cedric Hicks Committee Member Remote
Agenda Page 3
Hawthorne Alex Monteiro Committee Member Remote
Los Angeles County Rita Kampalath Alternate Committee
Member Remote
Ojai Betsy Stix Committee Member Remote
Sierra Madre Robert Parkhurst Committee Member Remote
South Pasadena Diana Mahmud Immediate Past Chair Absent Ventura County Vianey Lopez Vice Chair Absent
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from June 21, 2023, Executive Committee Meeting Motion: Committee Member Parkhurst, Sierra Madre
Second: Committee Member Klein Lopez, Agoura Hills
Vote: The consent agenda was approved by a roll call vote.
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
Ted Bardacke, CEO, discussed the annual joint rate comparison, and highlighted that CPA’s residential rates continue to remain competitive. The comparison does not reflect Southern California Edison’s (SCE) Green rates due to the full subscription of those programs. In October, CPA will distribute the 2022 Power Content Label (PCL) to all its customers, including information about greenhouse gas emission levels. Mr. Bardacke noted the forthcoming changes in preferred energy options for Alhambra, Paramount, and Unincorporated Los Angeles County.
3. Review Draft Agenda for the September 7, 2023, Board of Directors Meeting Mr. Bardacke discussed several items on the Board consent agenda, including the annual load by jurisdiction used for weighted votes, the introduction of new wireless technology rates, and customer program support services.
Mr. Bardacke discussed the Board’s regular agenda items, including Power Purchase Agreements (PPAs) to address the remaining capacity within the Power Share program and CPA’s employee Retention Incentive Program (which is subject to a separate presentation). Additionally, Mr. Bardacke congratulated the City of Carson for its leadership in launching two Community Solar projects recently.
4. Receive Presentation on Retention Incentive Program and Provide Feedback Mr. Bardacke and Dr. Monique Edwards-Greer, Chief Administrative Officer, provided a presentation outlining the implementation of the employee Retention Incentive Program. The Board approved $1.1 million for Retention Incentives in Agenda Page 4
the FY 23/24 budget in response to intense market competition for Executive and Management positions, coupled with disproportionately high employee turnover rates at the executive level. Dr. Edwards-Greer reviewed the specifics of the Retention Incentive Program, program parameters and metrics for organizational performance. Dr. Edwards-Green explained that the Retention Incentive Program proposal was refined based on prior feedback received from the Executive Committee.
Chair Gold relayed concerns expressed by Committee Member Mahmud regarding the inclusion of the retention incentive in CPA’s CEO and General Counsel (GC) employment agreements and impact of the incentives if the CEO and GC’s employment agreements expire during the Performance Period.
Committee Member Mahmud also raised concerns about incentive criteria being objective rather than subjective. Committee Member Mahmud also suggested other metrics, such as customer program spending, and/or the avoidance of CPUC penalties. Chair Gold said that staff had agreed to add an amendment to the CEO’s and GC’s employment agreements to clarify their eligibility for the Retention Incentive Program and to specify that the CEO and GC will be eligible only for the Contingent Amount in the event their contracts expire after the Performance Period but during the Waiting Period. Chair Gold noted that the three organizational performance criteria are objectively determinable. Lastly, as this is a retention mechanism, not an incentive bonus, other suggested metrics would not enhance the retention purpose of the program. Responding to Committee Member Hicks’ question about CPA’s position in relation to industry salary percentiles, Mr.
Bardacke indicated that CPA falls within the median range of industry percentiles.
Chair Gold emphasized the vital role of the Retention Incentive Program in safeguarding CPA’s employee integrity in the future. Committee Members Parkhurst, Kampalath, Monteiro, Klein Lopez, and Hicks all echoed Chair Gold’s comment and expressed their support for the program.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Chair Gold adjourned the meeting at 2:22 p.m.
Agenda Page 5
Staff Report – Agenda Item 2
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Oral Update from the CEO on CPA Operations
Date: September 21, 2023
The CEO will provide an oral report on CPA operations.
Agenda Page 6
Staff Report – Agenda Item 3
To: Executive Committee
Subject: Closed Session
Date: September 21, 2023
ATTACHMENT
1. Attachments for Closed Session will be forwarded under separate cover.
Agenda Page 7
Staff Report – Agenda Item 4
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Review Draft Agenda for October 5, 2023 Board of Directors Meeting Date: September 21, 2023
Staff will provide an overview of the proposed agenda items for the October 5, 2023 Board of Directors meeting for review and feedback from the Executive Committee. The draft Board agenda is attached to this staff report. Information on the main items for Board consideration is provided below.
CONSENT AGENDA
The following items are recommended for inclusion on the Consent Agenda of the October Board meeting.
Approval of Media Buying Contract
During Fiscal Years 2021-22 and 2022-23, CPA contracted with Fraser Communications for paid media services as part of its Professional Services Agreement (PSA) for creative services supporting program marketing and growth of CPA’s brand awareness. In Fiscal Year 2023-24, CPA’s Communications and Marketing team plans to separate out paid media services to contract with a specific vendor who can bring additional expertise and innovation to paid media services. A Request for Proposals for paid media services was launched in August and responses are in the process of being reviewed. Should negotiations with a selected vendor be successful, a proposed contract to provide comprehensive research and planning, media buying, facilitation of potential partnerships, and analysis/reporting will be presented to the Board for consideration. The expected not-to-exceed amount is $250,000 and is included in the Board-approved Fiscal Year 2023-24 budget.
Agenda Page 8
Executive Committee Item 4
Ratification of CalCCA Contracts and Amendment to Keyes & Fox Agreement Southern California Edison (SCE) currently has three ratemaking proposals before the California Public Utilities Commission (CPUC) – the 2024 Energy Resource Recovery Account (ERRA) forecast application, the 2022 ERRA review application, and the 2025 General Rate Case (GRC) – that can impact CPA’s competitiveness and overall customer bills. To ensure our customers and CPA is represented in these proceedings, CPA and four other CCAs in SCE territory entered into joint agreements with Keyes and Fox (“K&F”), NewGen Strategies & Solutions (“NewGen”), and MRW & Associates (“MRW”) for legal, technical and rate analysis support at a total cost of $244,900 for ERRA and $200,000 for the GRC.
In the joint agreements, the CCAs agreed to a cost sharing arrangement that is roughly based on the load share of each CCA. CPA’s portion of the cost for all three proceedings is $24,300 for MRW, $94,200 for NewGen, and $118,440 for K&F. K&F provides Legal Services and MRW and NewGen’s services are Specialized Services.1 Each has expertise and experience in investor-owned utilities (IOU) ratemaking proceedings and CPA has contracted with these firms in the past for similar services. The NTE for CPA’s portion of each of these contracts is included in the Board-approved Fiscal Year 2023-24 budget.
Because of the cost sharing arrangement, the vendors and the CCAs determined that it would be administratively burdensome to project manage the billing of multiple clients for the same work. The vendors and the CCAs therefore asked for CalCCA’s assistance in managing the administrative process, similar to what CalCCA does for CCAs in PG&E territory in similar situations. By working with CalCCA, the vendors bill CalCCA for the expenses, and then CalCCA charges each CCA based on the cost share arrangement.
The charges are billed as special assessments on top of the normal membership dues each CCA has already paid CalCCA. Under this arrangement, CalCCA becomes the 1 Under CPA’s Non-Energy Contracting Policy, competitive solicitations are not required for Legal Services or Specialized Services.
Agenda Page 9
Executive Committee Item 4
primary party executing contracts with each of the three vendors. CalCCA does not charge any mark-up or administrative fee to provide this service to its members.
Because CPA has already executed contracts with all three vendors in the past 12 months for other CPA-specific services, the amounts of the additional payments to these vendors that flow through CalCCA exceed the CEO’s signing authority of $125,000 per vendor or increase the aggregate contract price by greater than 10% of the original contract value.
Additionally, the amounts of special assessments charged by CalCCA to CPA for engagement in these proceedings also exceed the CEO’s signing authority. Therefore, CPA staff will seek the Board’s ratification of the special assessments by CalCCA to continue CPA’s engagement in these regulatory proceedings.
Legal Services Agreements (LSAs)
Staff are running a solicitation to identify and retain law firms to provide CPA with legal services related to energy procurement and regulatory support services. Staff intend to bring two or more LSAs for Board approval once the solicitation and negotiation(s) are successfully completed.
REGULAR AGENDA
The following items are recommended for inclusion on the Regular Agenda of the October Board meeting.
Power Purchase Agreement(s)
Staff are in the process of negotiating two long-term Power Purchase Agreements under a Fast Track provision in the 2023 Clean Energy and Reliability Request for Offers.
Should the Energy Committee ultimately approve these projects for shortlisting at its September 27 meeting and should these negotiations be successful, one or more of those contracts may be presented to the Board for consideration.
Expansion Invitations
This item will be subject to a separate presentation to the Executive Committee.
Agenda Page 10
Executive Committee Item 4
ATTACHMENT
1. Draft October 5, 2023 Board of Directors Agenda
Agenda Page 11
REGULAR MEETING of the Board of Directors of the
Clean Power Alliance of Southern California
Thursday, October 5, 2023
2:00 p.m.
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CLOSED SESSION
CONSENT AGENDA
1. Approve Minutes from September 7, 2023, Board of Directors Meeting
2. Approve Media Buying Contract
3. Ratification of CalCCA Contracts and Amendment to Keyes & Fox Agreement
4. Approve Legal Services Agreements
5. Receive and File Bill Positions Monthly Report
6. Receive and File Community Advisory Committee Monthly Report
REGULAR AGENDA
7. Approve Power Purchase Agreement(s)
8. Approve Expansion Invitations
MANAGEMENT REPORT
COMMITTEE CHAIR UPDATES
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT MEETING ON NOVEMBER 2, 2023
Agenda Page 12
Staff Report – Agenda Item 5
To: Executive Committee
From: Karen Schmidt, Director, Rates & Strategy
Approved by: Ted Bardacke, Chief Executive Officer
Subject: Expansion Invitations
Date: September 21, 2023
RECOMMENDATION
Receive presentation from staff and provide input.
ATTACHMENT
1. Expansion Invitations Presentation
Agenda Page 13
Proposed Expansion Invitations
September 21, 2023
Agenda Page 14
Agenda and Summary
CPA territory expansion: Background and priorities
Proposed 2023 expansion candidates: La Cañada-Flintridge, Lynwood, Port Hueneme Benefits and impacts
Process and timeline: New cities that join by 2023 would typically begin service in 2025; later if CPUC rules dictate
Staff requests feedback on recommendation to invite the three cities to join CPA on the earliest viable timeline
Agenda Page 15
Three cities well-aligned with CPA priorities have requested to be considered for JPA membership this year
Board priorities for expansion include:
1. Fill geographic holes within CPA’s service territory
2. Seek out load centers where there are synergies with CPA’s environmental and/or programmatic goals
3. Increase diversity among CPA membership
La Cañada-Flintridge, Lynwood, and Port Hueneme elected to move forward with the application process this year
o Each aligns with at least two of the three expansion priorities 3 City Customers % of CPA Customers Total Load (MWh) % of CPA Load Load Rank among cities
La Cañada-Flintridge 7,897 0.8% 233,290 2.1% 15
Lynwood 16,875 1.7% 213,153 1.9% 16
Port Hueneme 8,680 0.9% 61,403 0.6% 28
Total 33,067 3.3% 507,845 4.6% -
Agenda Page 16
Feasibility Studies
A feasibility study was done for each candidate city with a $10,000 cost contribution by each city; if the city is not invited, the cost contribution will be refunded.
Feasibility studies look at the financial impact to CPA’s existing customers of serving a new set of customers based on projected rates and costs in the first year of service.
In a time of rising energy prices, prospective new members will always have a higher cost of service and negative financial impact in the near-term relative to existing customers.
o When the current and forward cost of energy is higher than CPA’s existing contracts, the average cost of energy procurement for new customers will be higher than for existing customers.
o For short-term contracts, this impact will decline over time because most of CPA’s hedges are procured no more than three years forward.
o For long-term contracts, the potential impact could be positive or negative and is dependent on CPA’s future renewable energy contract costs, which are uncertain.
Agenda Page 17
4 5
Benefits and Impact
The benefits of continuing to fill out CPA’s service territory and expand its reach to new customers and communities are significant
o Along with expanding choice, environmental benefits, and economies of scale in procurement and operations, adding new communities will continues to strengthen CPA’s market position and political impact
Adding these cities would bring the total JPA membership to 38 agencies The near-term impact of the proposed 2023 candidates is small relative to CPA’s total load, customer base, and revenue
o The first-year impact of serving the three candidate cities results in a projected reduction in net position equal to 0.03% to 0.5% of CPA revenue and therefore a small theoretical impact to existing CPA customer bills
Agenda Page 18
Financial impact to the organization and current CPA customers will be relatively small and will depend on SCE rates, CPA competitive targets, and CPA energy costs Analysis below assumes total bills at parity on Clean Power for residential and small/medium businesses in the new communities, with 100% Green Power at a 4% premium and Lean Power at 1% discount
6 Projected First-Year Financial Impact
SCE Rates -10% vs Today SCE Rates Flat vs Today SCE Rates +10% vs Today Projected net revenue -$7.1 MM -$0.5 MM $6.1 MM
% of projected CPA revenue -0.5% -0.03% 0.4%
Projected First-Year Net Revenue Impact
SCE Rates -10% vs Today SCE Rates Flat vs Today SCE Rates +10% vs Today $/kWh $0.00069 $0.00005 -$0.00059
$/monthly bill $0.32 $0.02 -$0.27
% of average bill 0.16% 0.01% -0.14%
Projected Bill Impact to Current Customers: Average Residential Bill Example Agenda Page 19
Regulatory uncertainty
CPUC Decision 23-06-029 adopted on June 29, 2023, imposes new Resource Adequacy (RA) compliance requirements on CCAs seeking to expand o CPA is compliant with its September and October 2023 Month Ahead RA filing and expects to be compliant for Month Ahead filings for the rest of 2023. o Under these conditions, to serve new load in 2025, CPA would need to be compliant with its 2024 Year Ahead RA filing due October 31, 2023.
CalCCA has appealed the CPUC decision; the appeal will likely not be resolved for several months
In the meantime, the CPUC may reject a proposed launch of service in 2025 by CPA if it deems that the above RA compliance requirements have not been met o In this case, launch of service to new cities could be delayed to 2026 or later Agenda Page 20
7 8
Process and Timeline
October 5, 2023: CPA Board votes to invite candidate cities to join CPA. By this date staff expect to have more clarity on its 2024 YA RA position and therefore timeline for proposed launch of service
By November 30, 2023: Candidate cities pass ordinance to join CPA’s JPA and proceed with CCA implementation. Cities may choose preferred energy option at that time or defer the decision to 2024.
December 2023: CPA Board holds public hearing and considers Resolution to approve Implementation Plan Addendum and to admit cities into CPA.
By December 31, 2023: CPA submits Implementation Plan Addendum to CPUC.
January – December 2024: CPA secures energy resources to serve new load and works with new member agencies on preferred energy option selection (if applicable), launch timeline, and community outreach and education. 2025 (or 2026): Service to new customers begins; launch date determination pending resolution of RA situation
Agenda Page 21
Discussion
Staff requests feedback on recommendation to invite the cities of La Cañada-Flintridge, Lynwood, Port Hueneme to join CPA in 2023 with service to customers in those communities to begin in 2025.
Agenda Page 22
Appendix
Agenda Page 23
Typical Process to join CPA
11 City Council
Considers
Expressing
Interest in
Joining CPA
CPA
Conducts
Feasibility
Study/ Board
Considers
Inviting New
Member
City Council
Considers
Adopting
Ordinance
Joining JPA
CPA Board
Admits Cities
and Files
Imple-mentation
Plan by End
of CY
Onboarding
Process/
Public
Outreach
CPA Service
Goes Live
City Does Not Move Forward
City Does
Not Move
Forward
City Cannot
Join JPA
City Does
Not Join
JPA
No
City Waits
Another
Year to
Launch CPA
Service
No No No
Yes Yes Yes Yes Yes
Jan-Jun Jan-Sept Oct-Nov Nov-Dec CY +1 CY +2
Agenda Page 24