Thanks to partnerships with the IBEW and other labor unions, the SunZia project represents a significant, positive and responsible economic development opportunity for Arizona and New Mexico. Good, union jobs create an economic ripple effect, as union members’ income contributes directly or indirectly to state and local payroll taxes, increased spending in local businesses and local construction vendors, investments in job training, increased local charitable contributions, increased tourism, and more. The project is estimated to provide $20.5 billion in total economic benefit and $1.3 billion in direct payments to local governments, communities, schools and private landowners.
Building and maintaining a highly qualified workforce is extremely important to build the renewable energy infrastructure of the future. I greatly appreciate the IBEW’s collaboration with Pattern Energy and its contractor(s) to ensure that a highly qualified labor workforce is employed on SunZia, and the IBEW looks forward to contributing to the success of the project.
IBEW members across the West appreciate the high labor standards that Clean Power Alliance has promoted on its projects, with more than 20 project labor agreements in effect on new clean energy infrastructure completed or under construction for CPA, as well as the financial contributions they have provided to the IBEW training centers in Los Angeles and Ventura counties. SunZia will continue this legacy of high-road job creation that you have supported.
For these reasons, I ask that you approve the Power Purchase Agreement for the SunZia project, which will help meet the challenges being faced as a nation to build a resilient grid and meet carbon reduction goals for future generations.
Sincerely yours,
Kenneth W. Cooper
International President
KWC:mea
Agenda Page 172
October 18, 2023
Re: Los Angeles Business Council Support – SunZia Wind
Dear Clean Power Alliance Board of Directors,
The Los Angeles Business Council (LABC) is pleased to support the continued business of Pattern Energy in California with regard to the SunZia suite of wind and transmission projects. Pattern Energy, a member of the Los Angeles Business Council, serves more clean energy to California than any other company, including more than 6% for the City of Los Angeles.
LABC supports SunZia Wind with Clean Power Alliance, just as we supported the Pattern Energy Red Cloud Wind PPA with the Los Angeles Department of Water & Power (LADWP), which was part of the gigawatt-scaled Western Spirit wind and transmission suite of facilities commissioned in 2022. The Western Spirit facilities were ground-breaking, as Pattern Energy partnered with the municipal government of Los Angeles and the state government of New Mexico, utilizing new-build transmission developed jointly with the New Mexico Renewable Energy Transmission Authority (RETA), paired with existing grid capacity owned by LADWP that had been originally built for now-retired coal plants. Western Spirit was a truly cost-effective renewable energy success for the citizens of Los Angeles, and represented the largest renewable energy construction project in the U.S. at the time, upholding the values of responsible development with strong community engagement and good-paying jobs for working families, including more than 70% union labor.
Now Pattern Energy is preparing for SunZia Wind, its next major regional wind and transmission effort, which will be more than three times larger than Western Spirit and LABC is again proud to support the project for any load serving entity, especially those serving the interests of the greater Los Angeles area, such as Clean Power Alliance. With almost 70% of its customers receiving 100% Green Power, CPA has already signed 33 long-term contracts to meet the energy needs of its customers. SunZia will continue CPA’s commitment to procuring renewable energy for their over 3 million customers.
LABC agrees with the Biden Administration that SunZia is, “a game- changer for America’s Clean Energy Economy and our fight to save the planet.” LABC believes in the integrity and vision of both Pattern Energy and Clean Power Alliance showing responsible leadership in the renewable energy industry, the state of California, and the nation.
Sincerely,
Mary Leslie
President
LABC
Agenda Page 173
SunZia Wind
Power Purchase Agreement
November 2, 2023
Agenda Page 174
Agenda
Action Requested
Background
Project Summary
Agenda Page 175
Actions Requested
CPA is seeking Board approval for the SunZia Wind long-term renewable energy Power Purchase Agreement (PPA)
SunZia originally offered 500 MW in CPA’s 2023 Clean Energy and Reliability RFO and was shortlisted by the Energy Committee
Subsequent to October’s Executive Committee meeting, CPA received an offer to increase the contract size by 75 MW for a total of 575 MW under the same terms as offered in the RFO and subsequently negotiated contract
Staff prefers Option 2
Option Project Technology Installed
Capacity
Commercial
Operation Date
Contract
Length Process
1 SunZia Wind Wind 500 MW 2026 15 Years 2023 Clean Energy and Reliability RFO
2 SunZia Wind Wind 575 MW 2026 15 Years 2023 Clean Energy and Reliability RFO
3 Agenda Page 176
Background and
Project Overview
4 Agenda Page 177
Background
CPA launched the 2023 Clean Energy and Reliability RFO in June to fill a larger portion of its portfolio needs with long-term contracts and reduce its need to procure Resource Adequacy (RA) and renewable energy in short-term markets.
In September 2023, the Energy Committee approved the RFO shortlist and waitlist recommendation. The SunZia Wind project was on the shortlist with an installed capacity of 500 MW.
On October 23rd, following discussion of the project at the October 19 Executive Committee meeting, SunZia approached CPA with an offer to increase the installed capacity of the project by 75MW to 575MW.
The SunZia Wind complex is a 3,515 MW wind project in central New Mexico developed by Pattern Energy.
It is complemented by a new transmission line being constructed to bring the energy to California.
CPA would be an “anchor” off-taker of the project, contracting for 500MW (14%) or 575 MW (16%) of SunZia’s total capacity.
SunZia Wind is historic in size. Its nameplate capacity is approximately 50% greater than the Hoover Dam, and its annual generation will be about three times that of the Hoover Dam. Together with the transmission line, it is the single largest renewable energy project ever constructed in the United States ($8 billion).
The project has been nearly two decades in the making and has a wide variety of supporters across the Federal government, labor, environmental, and business groups. 5 Agenda Page 178
Wind and CPA’s Energy Portfolio
Wind energy is important to CPA’s
portfolio because it is complementary to
the generating profile of solar, providing
renewable energy in the evening and at
night.
Expected generation from the SunZia PPA
will make a significant contribution
to CPA’s renewable energy supply
sourced from long-term contracts.
At 500 MW, the SunZia project will fill
approximately 14% of CPA’s forecasted
renewable need in 2028. At 575 MW, it
will fill approximately 16% of the
renewable need.
6 0
200
400
600
800
1000
1200
1400
1600
1800
2000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 MW
2028 Average Hourly Load versus Average Hourly PPA
Generation (Executed and Proposed)
Average Hourly PPA Generation Average Hourly SunZia Generation Average of Load 0 50
100
150
200
250
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 MW
SunZia Average Hourly Profile
Agenda Page 179
SunZia Wind Project Overview
SunZia Wind is located in Lincoln, Torrance and San Miguel Counties in central New Mexico. A new transmission line (SunZia
Transmission) will bring the wind power to both Arizona and to the California Independent System Operator (CAISO)
The developer, Pattern Energy, has an operating portfolio of 35 renewable power facilities and has placed approximately 6 GW of wind generation into service in its history, including the new Western Spirit project which supplies LADWP and other public power/CCA entities in California
Energy from SunZia will be dynamically transferred into the CAISO at the Palo Verde intertie, at which point the project has a 2,131 MW firm transmission limit
CPA will receive a "Buyer’s Share" – either 14% or 16% depending on option selected – of all energy that flows to CAISO
Under current Resource Adequacy (RA) rules, SunZia will provide up to 150 MW of RA to CPA under the PPA, varying by month
The proposed PPA has provisions to split the project and/or contract into two pieces to facilitate financing
7 Agenda Page 180
SunZia Wind Supporters
The project has a long list of supporters:
Federal Government: the project groundbreaking
was headlined by Secretary of the Interior, Deb
Haaland. Interior was the main permitting authority
for the transmission line. The project was praised as
evidence that the US can still do big things in
energy.
Labor: IBEW is a significant supporter of the
project, hailing it in a letter to CPA as a significant, positive and responsible economic development
opportunity and a source of good, union jobs.
Environmental: The project is supported by the
National Audubon Society and located in a “low-conflict area” identified by the Nature Conservancy.
Pattern has worked with conservation groups to
avoid, minimize, or mitigate project impacts on
wildlife and habitat.
8 Interior Secretary Haaland at the project groundbreaking on Sept 1.
Agenda Page 181
Project
Valuation and
Rationale
9 Agenda Page 182
CPA solicited for multiple technologies in it's RFO, including solar, battery storage, and wind and received four conforming offers from wind projects.
o The SunZia Wind offer was the third best valued project submitted in the solicitation of any technology. o Only one of the wind offers was in-state and accounted for ~150 MW of the total 1,000 MW of wind offered. o CPA shortlisted the in-state offer as well as SunZia, but the project has not entered exclusivity. o SunZia Wind is located in one of the nation’s windiest locations, has a dedicated transmission line, and a near-term online date (2026).
RFO Valuation
SunZia Wind
Agenda Page 183
SunZia Wind Project Evaluation
Criteria Rank Rationale
Quantitative Value First Quartile The project was in the first quartile of projects ranked by RA Normalized NPV.
Development Score High The projects scores “High” as it is significantly de-risked. The major discretionary permits have been secured and the project has site control. Interconnection Agreements are executed. The developer, Pattern, has extensive experience in renewable energy and wind resource development.
Workforce Development High The project scores “High” as Pattern has secured agreements with IBEW and has pledged to fund CPA’s local Workforce Development efforts.
Environmental Stewardship Neutral The project scores a “Neutral” in Environmental Stewardship. Although partially located on undisturbed lands, Pattern has engaged with local, regional, and national conservation stakeholders to reduce project impacts on habitat and species Benefits to Disadvantage
Communities (DACs)
Neutral The project scores “Neutral” as it is not located in a DAC.
Project Location Medium The project scores “Medium” as it is located outside California but the majority of the project is located in a federally-designated “Energy Community” with significant amounts of employment in the fossil fuel industry and higher than average levels of unemployment.
11 Agenda Page 184
Market Conditions
Availability of additional energy from new renewable
resources will most likely remain tight for the
foreseeable future
CPA’s load growth is expected to accelerate due in
part to increased electric vehicle adoption and building electrification, resulting in an increased need for renewable energy
As state RPS Procurement requirements increase, there
will be an increase in demand for renewable projects
Interconnection backlogs and transmission constraints
continue to stifle the supply of resources available to come online
Due to tight market conditions, short-term REC prices have dramatically increased in the last year CPA has made a strategic decision to procure long-term
resources beyond its compliance requirements to ensure CPA has enough supply to meet customer commitments, regulatory requirements, and to help
mitigate its exposure to price risk in the short-term
markets for Renewable Energy Credits (RECs) and RA
12 20%
25%
33%
44%
52%
60%
2012 2016 2020 2024 2027 2030
California Renewable Portfolio Standard Requirements
(% of Retail Sales)
1. Prices are CPUC benchmarks for 2021 and 2022 and broker quotes for 2023 $13.50 $14.50
$45.00
$73.50
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
2021 2022 May 2023 Oct 2023
PCC1 Market Price $/REC1
Agenda Page 185
Supplier Concentration
13 Other, 1%
Terra-Gen, 1% CRES, 1% Ormat, 1%
Origis, 2% Fervo, 3%
MN8, 3%
EDF, 11%
Clearway, 11%
AES, 12%
Calpine, 17%
Pattern, 18%
NextEra, 19%
Renewable Energy Portfolio –
Annual MWh Contribution by Supplier*
• The addition of the 500MW
or 575 MW SunZia project
will result in Pattern
becoming CPA's second
largest energy supplier in
terms of total annual MWh
• While SunZia is a large
project, Pattern's portfolio
share is comparable to other
leading suppliers in CPA's
portfolio
*Chart data includes the 500 MW SunZia project
Agenda Page 186
SunZia Wind Project 575 MW Option 2
Subsequent to the October Executive Committee
meeting, CPA received an offer to increase the contract size by 75 MW.
The additional capacity is being offered under the same terms as those negotiated in the shortlisted offer.
In addition to the 500 MW staff prefers accepting SunZia's offer for an additional 75 MW of capacity for a total of 575 MW.
CPA has yet to enter exclusivity with all of its shortlisted counterparties and it is common for projects to drop out after shortlisting or for fully executed contracts to fail to achieve COD.
SunZia is in late stages of its development and is very likely to achieve commercial operation.
Wind projects are scarce and SunZia is competitively priced and in the 1st quartile in NPV.
The additional 75 MW has a negligible impact on CPA's
supplier concentration risk.
Other, 1%
Terra-Gen, 1% CRES,
1% Ormat, 1%
Origis, 2% Fervo, 3%
MN8, 3%
EDF, 10%
Clearway, 11%
AES, 11%
Calpine, 16%
NextEra, 19%
Pattern, 20%
Renewable Energy Portfolio –
Annual MWh Contribution by Supplier*
*Chart data includes the 575 MW SunZia project
14 Agenda Page 187
Summary
The Sunzia Wind project will allow CPA to make meaningful progress towards meeting its long-term renewable energy and RA needs
Sunzia Wind was the third highest value project in the RFO across all technologies and will provide CPA with cost effective renewable energy with a generation profile that complements CPA's solar resources
Action Requested: Approve the 15-year Renewable Power Purchase Agreement with SunZia Wind PowerCo LLC (SunZia Wind) and authorize the Chief Executive Officer to execute the agreement for either Option 1 or Option 2. 15 Agenda Page 188
Staff Report – Agenda Item 5
To: Board of Directors
From: David McNeil, Chief Financial Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Fiscal Year 2022-2023 Audited Financial Statements and Fiscal Year 2022-2023 Budget to Actual Report
Date: November 2, 2023
RECOMMENDATION
Receive a presentation of CPA’s Fiscal Year (FY) 2022-2023 Audited Financial Statements and FY 2022-2023 Budget to Actual report.
BACKGROUND
Each year CPA publishes fiscal year-end financial statements. CPA’s Bylaws require the Finance Committee to select an independent auditor to perform a financial audit of the accounts of CPA on an annual basis. In April 2023, the Finance Committee selected Baker Tilly to perform an audit of CPA’s FY 2022-23 financial statements.
Staff is responsible for the preparation and fair presentation of the financial statements.
The independent auditor performs tests to ensure that the financial statements are free from material misstatement. On October 17, 2023 Baker Tilly reported its audit findings to the Finance Committee which included a ‘clean’ audit opinion.
The FY 2022-23 Financial Statements (Attachment 1) consist of the following:
• Independent Auditors’ Report (Auditors’ Report)
• Management’s Discussion and Analysis
• Financial Statements, including:
Agenda Page 189
Board of Directors Item 5
o Statements of Net Position
o Revenues and Expenses and Changes in Net Position
o Statements of Cash Flows
o Notes to the Financial Statements
DISCUSSION
Auditors’ Report
The Auditors’ Report includes its opinion that CPA’s FY 2022-23 Financial Statements “present fairly, in all material respects, the financial position of Clean Power Alliance of Southern California as of June 30, 2023 and 2022, and the respective changes in financial position and cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America”. The Auditors’ Report contains what is generally regarded as an unqualified or “clean” audit opinion.
Financial Highlights
• CPA recorded strong financial results in FY 2022-23. The net position increased by $80.3 million, up from a $67 million increase in the prior year. • CPA’s FY 2022-23 financial results benefited from the following:
• Increases in retail rates on July 2022 and April 2023. However, these benefits were offset by September 2022 heat wave, gas and energy price shocks in December 2022 and January 2023, higher than budgeted renewable energy costs, and a Resource Adequacy compliance penalty. • Interest Income increased due to the increase in market interest rates stemming from rate hikes made by the Federal Reserve.
• The receipt and application of $10.4 million of California Arrearage Payment Program (2022 CAPP) funds which reduced eligible past-due accounts receivable and increased cash in January 2023.
• Cash was positively impacted by the increase in net position, higher accrued electricity costs and lower energy market settlements. Cash was negatively impacted by higher accounts receivable, accrued revenue, and higher prepaid expenses. Higher accounts receivable and accrued revenue
Agenda Page 190
Board of Directors Item 5
arose primarily from an increase in retail electricity rates. Higher prepaid expenses resulted primarily from resource adequacy contracts. Higher accrued electricity costs resulted from higher electricity costs and delays in supplier invoicing for renewable energy. Lower energy market settlements expenditures arose from cool weather conditions in June 2023 and lower charges from the CAISO.
• In September 2022, CPA drew $60 million on its $80 million JP Morgan Chase credit facility. CPA repaid $20 million of the loan in September 2022, and an additional $40 million was repaid in October 2022. • In January 2023, CPA drew $35 million on its $80 million JP Morgan credit facility and repaid it in the same month.
• In June 2023 CPA amended the credit facility agreement with JP Morgan, by increasing the facility size to $160 million from $80 million. • As of June 30, 2023, CPA had no loans, bank debt or letters of credit outstanding and apart from a $147,000 letter of credit issued to SCE; $159.853 million of CPA’s line of credit was unutilized. • Total liquidity (unrestricted cash and cash equivalents and unused bank line of credit) increased year over year from $134.4 million as of June 30, 2022 to $292.6 million as of June 30, 2023.
• The financial results comply with CPA’s credit covenants. • On September 27, 2023, CPA received an A- issuer credit rating from S&P Global Ratings, which is expected to yield many benefits to CPA including:
• Increasing the number and quality of financial institutions willing to finance CPA’s long-term renewable and energy storage projects;
• Increasing energy supplier participation in CPA’s short-term solicitations for energy and RA, increasing competition and potentially reducing costs; • Reducing or eliminating certain collateral posting obligations;
Agenda Page 191
Board of Directors Item 5
• Reducing costs associated with CPA’s bank line of credit; and • Enhancing CPA’s reputation as a stable, financially-sound leader in the energy industry.
Key financial metrics and additional analysis of FY 2022-23 results are presented in the Presentation of FY 2022-23 Financial Results (see Attachment 3).
FY 2022-23 Budget to Actual Report
The FY 2022-23 Budget to Actual Report (see Attachment 2) compares actual results for the 12 months ending June 30, 2023 with the FY 2022-23 Budget as amended by the Board at its April 6, 2023 meeting (Amended Budget). Budget to Actual highlights include:
• Net position increased by $80.3 million, $13.3 million more than the prior year’s increase of $67 million.
• Operating revenues less energy cost (gross margin) was $15.5 million below amended budget primarily impacted by the September 2022 heat wave, gas and energy price shocks in December 2022 and January 2023, higher than budgeted renewable energy costs, and a Resource Adequacy compliance penalty. • Operating expenses were 23% under the budget primarily due to lower spending on general and administrative expenses, customer programs and other services, and the non-utilization of contingencies.
• CPA was within budget limits for all budget expense line items with the exception of the following:
• SCE service expenses ($190,466 or 9% over amended budget). SCE service expenses exceeded budget due to adjustments made by SCE in the current fiscal year that relate to services delivered in prior years. • Interest Income ($1,284,273, 364% over amended budget) Interest Income increased significantly compared to the amended budget due to higher market interest rates stemming from rate hikes made by the Federal Reserve, which resulted in CPA earning more interest from the bank than in prior years.
Agenda Page 192
Board of Directors Item 5
Additional analysis of Budget to Actual results, including a comparison of actual FY 2022- 23 results with the FY 2022-23 Amended Budget approved by the Board in April 2023, appears in the Presentation of FY 2022-23 Financial Results (Attachment 3).
Summary
For the year ending June 30, 2023, CPA increased the net position by $80.3 million and $162.8 million in total liquidity. CPA is in sound financial health and is well-positioned to serve its customers and deliver on its mission.
ATTACHMENTS
1. FY 2022-23 Audited Financial Statements
2. FY 2022-23 Budget to Actual Report
3. Presentation of FY 2022-23 Financial Results and Initial 2024 PCIA and SCE Rate Outlook
Agenda Page 193
CLEAN POWER ALLIANCE OF SOUTHERN
CALIFORNIA
Basic Financial Statements with Independent
Auditors’ Report
Agenda Page 194
For the Fiscal Years Ended June 30, 2023 and 2022
TABLE OF CONTENTS
Independent Auditors' Report ………………………………………………………... 1 Management's Discussion and Analysis (Unaudited) ………………………………… 3 Basic Financial Statements:
Statements of Net Position …………………………………………………… 13
Statements of Revenues, Expenses and Changes in Net Position …................ 14 Statements of Cash Flows …………………………………………………… 15
Notes to the Basic Financial Statements ……………………………………. 17
Agenda Page 195
Independent Auditors' Report
To the Board of Directors of
Clean Power Alliance of Southern California
Opinion
We have audited the accompanying financial statements of Clean Power Alliance of Southern California (CPA), as of and for the years ended June 30, 2023 and 2022, and the related notes to the financial statements, which collectively comprise the CPA's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of CPA as of June 30, 2023 and 2022, and the changes in financial position and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the CPA and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the CPA's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020 Baker Tilly US, LLP 1 Agenda Page 196
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the CPA's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the CPA's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Madison, Wisconsin
October 17, 2023
2 Agenda Page 197
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
YEARS ENDED JUNE 30, 2023 AND 2022
3 The Management's Discussion and Analysis section provides an overview of Clean Power Alliance of Southern California's (CPA) financial activities as of and for the fiscal years ending June 30, 2023 and 2022. The information presented here should be considered in conjunction with the audited financial statements.
Contents of this Report
This report is divided into the following sections:
Management's Discussion and Analysis.
The Basic Financial Statements, including:
o The Statements of Net Position which include all of CPA's assets, liabilities, and net position and provide information about the nature and amount of resources and obligations at a specific point in time.
o The Statements of Revenues, Expenses, and Changes in Net Position which report all of CPA's revenue and expenses for the years shown.
o The Statements of Cash Flows which report the cash provided and used by operating activities, as well as other sources and uses, such as non-capital financing activities.
o Notes to the Basic Financial Statements, which provide additional details and information related to the Basic Financial Statements.
Agenda Page 198
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
YEARS ENDED JUNE 30, 2023 AND 2022
4 MANAGEMENT’S DISCUSSION AND ANALYSIS
Agenda Page 199
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
YEARS ENDED JUNE 30, 2023 AND 2022
5 BACKGROUND
CPA was formed pursuant to California Assembly Bill 117 which enables communities to purchase power on behalf of their residents and businesses and creates retail choices for electric generation services.
CPA, formerly Los Angeles Community Choice Energy (LACCE), was created as a California Joint Powers Authority on June 27, 2017. CPA was established to study, promote, develop, conduct, operate, and manage energy programs in Southern California. The parties to CPA's Joint Powers Agreement consist of local governments whose governing bodies elect to join CPA.
Governed by a board of directors (Board) made up of elected officials from each of the parties to the JPA, CPA has the authority to set rates for the services it furnishes, incur indebtedness, and issue bonds or other obligations. CPA acquires electricity from commercial suppliers and delivers it through existing physical infrastructure and equipment managed by the California Independent System Operator (CAISO) and Southern California Edison (SCE).
Pursuant to the Public Utilities Code, when parties join CPA, all electricity customers in its jurisdiction, except for customers served under California's Direct Access Program, automatically become default customers of CPA for electric power generation, provided that customers are given the option to "opt-out".
CPA began operations by serving approximately 1,800 municipal and commercial accounts in February 2018. In June 2018, it enrolled approximately 28,000 municipal and commercial accounts. In February 2019, CPA enrolled approximately 900,000 residential customer accounts.
In May 2019, CPA enrolled approximately 100,000 commercial accounts. CPA enrolled approximately 4,000 residential and commercial accounts from Westlake Village in June 2020. In March 2024, CPA will enroll approximately 38,000 additional accounts from three jurisdictions that joined the JPA in late 2022.
CPA's goal is to provide customers with competitively priced and affordable electricity with high renewable energy content and low greenhouse gas emissions. Currently, CPA offers its customers three electricity services to choose from: Lean Power, Clean Power, and 100% Green Power. Lean Power provides 40% clean power (20-25% renewable and 15-20% carbon-free energy content); Clean Power provides at least 50% clean power (50% renewable and up to 20% additional carbon-free energy content) and 100% Green Power provides 100% renewable energy content.
Financial Reporting
CPA presents its financial statements as a governmental enterprise fund under the economic resources measurement focus and accrual basis of accounting, in accordance with Generally Accepted Accounting Principles (GAAP) for proprietary funds, as prescribed by the Governmental Accounting Standards Board (GASB).
Agenda Page 200
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
YEARS ENDED JUNE 30, 2023 AND 2022
6 FINANCIAL HIGHLIGHTS
The following table summarizes CPA's assets, liabilities, deferred inflows of resources, and net position for the fiscal years (FY) ending June 30.
* FY 2020-21 financial results are “restated” to reflect the implementation of GASB 87 consistent with generally accepted accounting principles.
Current Assets
Current assets were approximately $407,408,000 at the end of FY 2022-23 and were mostly comprised of $132,787,000 of cash and cash equivalents, $123,259,000 of accounts receivable, $87,230,000 of accrued revenue, $46,153,000 of prepaid expenses and $15,951,000 in deposits.
Current assets were approximately $248,919,000 at the end of FY 2021-22 and were mostly comprised of $54,538,000 of cash and cash equivalents, $96,571,000 of accounts receivable, $55,497,000 of accrued revenue, $7,659,000 of other receivables, $6,138,000 of prepaid expenses and $26,116,000 in deposits.
Total current assets increased as of June 30, 2023, compared to the prior year, particularly cash, prepaids, accrual revenue, and accounts receivable. Cash increased year over year primarily due to operating surpluses and reduced collateral posting required by the CAISO. Prepaids increased compared to the prior year mainly due to the prepayments required pursuant to Resource Adequacy contracts. Accounts receivable increased primarily due to the retail sales increase resulting from rate increases in July 2022 and April 2023, more jurisdictions converting to the 100% Green rate, and the suspension by SCE of disconnections and late payments penalties applied to residential accounts receiving funding under the California Arrearage Payment Program.
Agenda Page 201
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
YEARS ENDED JUNE 30, 2023 AND 2022
7 Total current assets increased as of June 30, 2022, compared to the prior year, particularly deposits, accounts receivable, and other receivables. Deposits increased year over year primarily due to increased collateral posting amounts required by the CAISO. Accounts receivable increased year over year primarily due to a rate increase that went into effect in July 2021 and increased retail electricity use in May and June 2022 as compared to May and June 2021. Other receivables increased primarily due to payments from energy suppliers under the netting provisions of power purchase agreements.
Noncurrent Assets
Noncurrent assets decreased as of June 30, 2023, compared to the prior year mainly due to the amortizing of the intangible office lease asset and the depreciation expenses. Noncurrent assets decreased as of June 30, 2022, compared to the prior year primarily as a result of amortizing the intangible office lease asset.
Current Liabilities
Current liabilities consist mostly of the costs of electricity delivered to customers that are not yet due to be paid by CPA to its suppliers. Other components include trade accounts payable, taxes and surcharges due to governments, and various other accrued liabilities. Unearned program funds represent funds for customer programs received from the CPUC and not yet spent.
Total current liabilities increased as of June 30, 2023, compared to the prior year, mainly due to the increase in the cost of energy accrual resulting from higher resource adequacy and renewable energy costs.
Total current liabilities decreased as of June 30, 2022, compared to the prior year, primarily as a result of a decrease in security deposits from energy suppliers. Security deposits from energy suppliers decreased as a result of reduced collateral requirements arising from energy supply agreements.
Noncurrent Liabilities
Noncurrent liabilities decreased as of June 30, 2023, from the prior year primarily as a result of a decrease in supplier security deposits pursuant to energy supply agreements.
Noncurrent liabilities decreased as of June 30, 2022, from the prior year primarily as a result of the decrease in lease liability due to the reclass per GASB 87, offset by increased supplier security deposits pursuant to energy supply agreements.
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YEARS ENDED JUNE 30, 2023 AND 2022
8 Revenues and Expenses
The following table summarizes CPA’s results of operations for the years ending June 30:
Total Income
Operating revenues arise from electricity sales to customers and funding to support CPA’s Power Share program. CPA reports electricity revenues, net of an allowance for uncollectable accounts, as described in the Notes to the Financial Statements.
Operating revenues increased to approximately $1,167,777,000 in FY 2022-23 from $867,481,000 in FY 2021-22. Revenue increased primarily as a result of increases in retail electricity rates that occurred in July 2022 and April 2023.
Operating revenues increased in FY 2021-22 from the prior year as a result of an increase in retail electricity rates that occurred in July 2021.
Year-over-year changes in interest income reflect changes in interest rates and average cash balances in interest-earning accounts.
Total Expenses
Operating expenses include the cost of electricity and electric capacity used to serve CPA’s customers and meet its regulatory obligations, charges and credits levied by the CAISO, contracts with service providers, staff compensation and general and administrative expenses. Non-operating expenses consist primarily of interest and other expenses associated with borrowing agreements.
Operating expenses increased to $1,088,599,000 in FY2022-23 from $799,921,000 in FY 2021-
22. The increase is mainly due to increased prices for certain products in the energy markets. CPA purchases its energy supply from various resources in order to reduce market risk and maintain a balanced, renewable energy portfolio. Contract service costs increased year-over-year as CPA implemented more customer programs and incentives and performed more community outreach.
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YEARS ENDED JUNE 30, 2023 AND 2022
9 Staffing and general and administrative costs increased year over year as CPA hired additional staff and built out its operating capabilities.
Electricity costs and other operating expenses increased in FY 2021-22 from the prior year primarily as a result of the increased energy costs, contract services and staff costs.
Change in Net Position
The change in net position represents the difference between total income and total expenses in a given fiscal year.
CPA’s net position increased by $80,294,000 in FY 2022-23. CPA’s net position increased by $67,045,000 in FY 2021-22 and by $27,622,000 in FY 2020-21.
CPA had a higher increase in net position in FY 2022-23 as compared to FY 2021-22 due to increased electricity sales resulting primarily from rate increases and higher interest income offset by the increased costs for energy, staffing, and customer programs.
CPA had a higher increase in net position in FY 2021-22 as compared to the prior year due to increased electricity sales, offset by smaller increases in the cost of electricity and operating expenses.
PURCHASE COMMITMENTS AND ECONOMIC OUTLOOK
During the normal course of business, CPA enters into various agreements, including renewable energy agreements, energy storage agreements, and other power purchase agreements to purchase power and electric capacity (Resource Adequacy). CPA enters into power purchase agreements and energy supply agreements in order to comply with state law and voluntary targets for renewable and greenhouse gas (GHG) free products. California law established a Renewable Portfolio Standard (RPS) that requires load-serving entities, such as CPA, to gradually increase the amount of renewable energy they deliver to their customers.
In October 2015, the California Governor signed Senate Bill (SB) 350, the Clean Energy and Pollution Reduction Act of 2015, into law. SB 350 became effective January 1, 2016, and increases the amount of renewable energy that must be delivered by most load-serving entities, including CPA, to their customers from 33% of their total annual retail sales by the end of the 2017-2020 compliance period, to 50% of their total annual retail sales by the end of the 2028-2030 compliance period, and in each three-year compliance period thereafter, unless changed by legislative action.
In September 2018, the California Governor signed SB 100, the 100 Percent Clean Energy Act of 2018, into law. SB 100 increases the amount of renewable energy that must be delivered to customers by most load-serving entities, including CPA, by 60% of their annual retail sales by the end of the 2028-2030 compliance period. SB 100 also further establishes as state policy that eligible renewable energy resources and zero-carbon resources supply 100 percent of all retail
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YEARS ENDED JUNE 30, 2023 AND 2022
10 sales of electricity to California end-use customers and 100 percent of electricity procured to serve all state agencies by December 31, 2045.
SB 100 provides compliance flexibility and waiver mechanisms, including increased flexibility to apply excess renewable energy procurement in one compliance period to future compliance periods. SB 350 requires that for the 2021-24 compliance period, at least 65% of the procurement a retail seller, such as CPA, counts toward the renewable portfolio standard requirement of each compliance period shall be from its contracts of ten years or more in duration.
In September 2022, California Governor Newsom signed SB1020. SB 1020 adds interim targets to the policy framework originally established in SB 100 to require renewable energy and zero-carbon resources to supply 90% of all retail electricity sales by 2035 and 95% of all retail electricity sales by 2040. The inclusion of interim targets will ensure that the state makes steady and accountable progress toward the full decarbonization of California’s electricity grid.
CPA enters into long-term purchase agreements to bring new solar, wind, and other renewable energy generating facilities online, to meet its regulatory RPS and GHG-free targets, to accomplish its mission of providing renewable energy, reducing greenhouse gas emissions, serving its customers, and managing energy market risks. CPA enters into energy storage agreements to meet its obligations under the Resource Adequacy program administered by the CPUC and to better manage energy market risk. CPA manages risks associated with these commitments by aligning purchase commitments with the expected demand for electricity and assuring diversity of technologies, geographical locations, and suppliers.
Commitments under power purchase agreements increased to $8.8 billion as of June 30, 2023, from $5.33 billion as of June 30, 2022, consistent with CPA’s Board-approved Energy Risk Management Policy.
Due to the economic impact of the COVID-19 pandemic, many utility customers have accrued significant energy debt and faced potential energy service disconnection if delinquent account balances are not resolved.
In response to the energy debt Californians are facing, the State Budget Act of 2021 appropriated $1 billion from the federal American Rescue Plan Act of 2021 to support the establishment of the California Arrearage Payment Program (2021 CAPP). 2021 CAPP was designed to provide financial assistance to active and inactive residential and commercial customer accounts reflecting delinquent balances incurred during the COVID-19 pandemic relief period. CPA customers received approximately $15.8 million of 2021 CAPP funding in early 2022.
The State Budget Act of 2022 appropriated additional funds for CAPP (2022 CAPP) and extended the eligibility period to cover retail bills for active residential customers issued between March 4, 2020, and December 31, 2021. CPA customers received approximately $10.4 million of 2022 CAPP funding in early 2023.
CPA’s allowance for uncollectable accounts as of June 30, 2022, was adjusted to reflect the 2022 CAPP payment. Management believes that the allowance for uncollectable accounts provides a
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YEARS ENDED JUNE 30, 2023 AND 2022
11 conservative estimate of customer non-payments and that CPA’s cash flow, and gross margins are sufficient to manage slower customer payments. Management intends to continue its conservative use of financial resources and expects to generate ongoing operating surpluses in future years.
REQUEST FOR INFORMATION
This financial report is designed to provide CPA’s customers, creditors, and other stakeholders with a general overview of the organization’s finances and to demonstrate CPA’s accountability for the funds under its stewardship.
Please address any questions about this report or requests for additional financial information to the Chief Financial Officer, 801 S. Grand Avenue, Suite 400, Los Angeles, CA 90017.
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12 BASIC FINANCIAL STATEMENTS
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
STATEMENTS OF NET POSITION
YEARS ENDED JUNE 30, 2023 AND 2022
The accompanying notes are an integral part of these financial statements. 13
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
STATEMENTS OF REVENUES, EXPENSES
AND CHANGES INNET POSITION
YEARS ENDED JUNE 30, 2023 AND 2022
The accompanying notes are an integral part of these financial statements. 14
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2023 AND 2022
The accompanying notes are an integral part of these financial statements. 15
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2023 AND 2022
The accompanying notes are an integral part of these financial statements. 16
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
17 1. REPORTING ENTITY
Clean Power Alliance of Southern California (CPA) is a joint powers authority created on June 27, 2017. As of June 30, 2023, parties to its Joint Powers Agreement consist of the following local governments:
* Hermosa Beach, Monrovia, and Santa Paula are official members of the JPA as of March 2023, though customers in those jurisdictions won’t begin CPA service until March 1, 2024.
CPA is separate from and derives no ongoing financial support from its members. CPA is governed by a Board of Directors whose membership is comprised of elected officials representing the parties.
CPA’s mission is to provide cost-competitive electric services, reduce electric sector greenhouse gas emissions, stimulate renewable energy development, implement distributed energy resources, promote energy efficiency and demand reduction programs, and sustain long-term rate stability for residents and businesses through local control. CPA provides electric service to retail customers as a Community Choice Aggregation Program under the California Public Utilities Code (CPUC) Section 366.2.
Electricity is acquired from commercial suppliers and delivered through existing physical infrastructure and equipment managed by Southern California Edison (SCE).
Counties Cities
Los Angeles Agoura Hills Ojai
Ventura Alhambra Oxnard
Arcadia Paramont
Beverly Hills Redondo Beach
Calabasas Rolling Hills Estates
Carson Santa Monica
Camarillo Santa Paula *
Claremont Sierra Madre
Culver City Simi Valley
Downey South Pasadena
Hawaiian Gardens Temple City
Hawthorne Thousand Oaks
Hermosa Beach * Ventura
Malibu West Hollywood
Manhattan Beach Westlake Village
Monrovia * Whittier
Moorpark
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
18 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
CPA’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements.
CPA’s operations are accounted for as a governmental enterprise fund and are reported using the economic resources measurement focus and the accrual basis of accounting – similar to business enterprises. Accordingly, revenues are recognized when they are earned, and expenses are recognized at the time liabilities are incurred. Enterprise fund-type operating statements present increases (revenues) and decreases (expenses) in total net position. Reported net position is segregated into three categories – investment in capital assets, restricted, and unrestricted.
When both restricted and unrestricted resources are available for use, it is CPA’s policy to use restricted resources first, then unrestricted resources as they are needed.
CASH AND CASH EQUIVALENTS
For purposes of the Statements of Cash Flows, CPA defines cash and cash equivalents to include cash on hand, demand deposits, and short-term investments. As of June 30, 2023 and 2022, cash and cash equivalents were held in various interest-earning and non-interest-earning accounts at River City Bank and in the California Local Agency Investment Fund (LAIF). Amounts restricted pursuant to security and lending agreements are included as cash and cash equivalents on the Statement of Cash Flows.
PREPAID EXPENSES AND DEPOSITS
Contracts to purchase energy may require CPA to provide the supplier with advance payments or security deposits. Deposits consist of collateral deposits required by CAISO and security deposits held by suppliers as required under certain energy contracts entered by CPA. Deposits are generally held for the term of the contract and are classified as current or noncurrent assets depending on the length of time the deposits will be outstanding.
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
19 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
CAPITAL ASSETS AND DEPRECIATION
CPA’s policy is to capitalize furniture and equipment valued over $5,000 that is expected to be in service for over one year. Depreciation is computed according to the straight-line method over estimated useful lives of three years for electronic equipment and seven years for furniture.
Leasehold improvements are depreciated over the shorter of 1) the useful life of the leasehold improvement, or 2) the remaining years of the lease.
LEASE ASSETS AND LIABILITIES
CPA recognizes an asset and liability when it enters certain leasing arrangements. The leased assets are amortized over the term of the leases. The lease liabilities are established at the present value of payments expected to be paid to the lessors during the terms of the lease.
SECURITY DEPOSITS FROM ENERGY SUPPLIERS
Various energy contracts entered into by CPA require the supplier to provide CPA with a security deposit. These deposits are generally held for the term of the contract or until the completion of certain benchmarks. Deposits are classified as current or noncurrent depending on the length of time the deposits will be held.
UNEARNED PROGRAM FUNDS
CPA received PowerShare program funding from the California Public Utility Commission. The amount represents funds received by CPA, but not yet spent on the PowerShare program-specific expenses.
NET POSITION
Net position is presented in the following components:
Investment in capital assets: This component of net position consists of capital assets, lease assets, net of accumulated depreciation and amortization, and is reduced by outstanding borrowings that are attributable to the acquisition, construction, or improvement of those assets.
CPA did not have any outstanding borrowings as of June 30, 2023, and 2022 attributable to those assets.
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
20 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Restricted: This component of net position consists of net assets subject to external constraints on their use imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation.
Unrestricted: This component of net position consists of net position that does not meet the definition of “investment in capital assets” or “restricted.”
OPERATING AND NON-OPERATING REVENUE
Operating revenues include revenues derived from the provision of electricity to retail customers and program revenue earned from the delivery of program activities. Electricity sales are reported net of changes to the allowance for uncollectable accounts. Other revenue consists of revenue that is not related to sales of electricity to CPA customers.
Interest income is considered “non-operating revenue.”
REVENUE RECOGNITION
CPA recognizes revenue on an accrual basis. This includes invoices issued to customers during the reporting period and electricity estimated to have been delivered but not yet billed.
Management estimates that a portion of the billed amounts will be uncollectible. Accordingly, an allowance for uncollectible accounts has been recorded.
OPERATING AND NONOPERATING EXPENSES
Operating expenses include the cost of sales and services, administrative expenses, and depreciation on capital assets and amortization of right-to-use lease assets. Expenses not meeting this definition are reported as non-operating expenses.
ELECTRICAL POWER PURCHASED
During the normal course of business, CPA purchases electrical power from numerous suppliers.
Electricity costs include the cost of energy and capacity arising from bilateral contracts with energy suppliers as well as wholesale sales and generation credits, and load and other charges arising from CPA’s participation in the CAISO’s centralized market. The cost of electricity and capacity is recognized as “Cost of Electricity” in the Statements of Revenues, Expenses and Changes in Net Position. To comply with the State of California’s Renewable Portfolio Standards (RPS) and other product content targets, CPA acquires RPS-eligible renewable energy evidenced by Renewable Energy Certificates (Certificates) recognized by the Western Renewable Energy
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
21 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Generation Information System (WREGIS). CPA obtains Certificates with the intent to retire them and does not sell or build surpluses of Certificates with a profit motive. CPA purchases capacity commitments from qualifying generators to comply with the California Energy Commission’s Resource Adequacy Program. The goals of the Resource Adequacy Program are to provide sufficient resources to the CAISO to ensure the safe and reliable operation of the grid in real-time and to provide appropriate incentives for the siting and construction of new resources needed for reliability in the future. CPA complies with external mandates and self-imposed benchmarks.
STAFFING COSTS
CPA pays employees semi-monthly and fully pays its obligations for health benefits and contributions to its defined contribution retirement plan each month. CPA is not obligated to provide post-employment healthcare or other fringe benefits and, accordingly, no related liability is recorded in these financial statements. CPA provides compensated time off, and the related liability is recorded in these financial statements.
INCOME TAXES
CPA is a Joint Powers Authority (JPA) under the provisions of the California Government Code and is not subject to federal or state income or franchise taxes.
USER TAXES AND ENERGY SURCHARGES DUE TO OTHER GOVERNMENTS CPA is required by governmental authorities to collect and remit user taxes on certain customer sales. These taxes do not constitute revenues or expenses to CPA.
ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
RECLASSIFICATIONS
Certain amounts in the prior-year financial statements have been reclassified for comparative purposes to conform to the presentation of the current-year financial statements.
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
22 3. CASH AND CASH EQUIVALENTS
As of June 30, 2023, CPA maintains its cash in both interest-earning and non-interest-earning bank accounts with River City Bank and in the California Local Agency Investment Fund (LAIF).
Cash balances are subject to the Local Agency Security Program (LASP) administered by the California Department of Financial Protection and Innovation (DFPI) pursuant to California Government Code, Section 53630 through 53686. The LASP is designed to protect government agency deposits and requires banks holding agency deposits to collateralize deposits in excess of $250,000 with highly rated government securities and/or a letter of credit issued by the Federal Home Loan Deposit Corporation (FHLDC) in amounts equal to 110% and 105% of agency deposits, respectively. Government securities collateralizing agency deposits are required to be held by third-party trust companies with legal and regulatory obligations to the DFPI. The DFPI is the beneficiary of FHLDC letters of credit collateralizing agency deposits. CPA’s Board-approved Investment Policy requires that when managing funds, CPA’s primary objectives, in the following order of importance, shall be to (1) safeguard the principal of the funds, (2) meet the liquidity needs of CPA, and (3) achieve a return on investment on funds in CPA’s control.
Risk is monitored on an ongoing basis.
CPA maintains cash with LAIF, managed by the State Treasurer, for the purpose of increasing interest earnings through pooled investment activities. These funds are not registered with the Securities and Exchange Commission but are required to be invested according to the California Government Code. Participants in the pool include voluntary and involuntary participants, such as special districts and school districts for which there are legal provisions regarding their investments. The Local Investment Advisory Board (LIAB) has oversight responsibility for LAIF. LIAB consists of four members as designated by state statute.
FAIR VALUE MEASUREMENT
GASB Statement No. 72, Fair Value Measurement and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. CPA’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. Deposits and withdrawals from LAIF are made on the basis of $1 which is substantially equal to fair value.
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
23 3. CASH AND CASH EQUIVALENTS (continued)
As of June 30, 2023 and 2022, CPA held no individual investments subject to classification under the fair value hierarchy.
CUSTODIAL CREDIT RISK
Custodial credit risk for deposits is that in the event of a bank failure, CPA’s deposits may not be returned to it. CPA’s policy is that deposits be insured by the FDIC. CPA maintains cash in bank accounts, which at times may exceed federally insured limits. Bank accounts are guaranteed by the FDIC up to $250,000. CPA has not experienced any such losses in its deposit accounts.
CPA manages custodial credit risk for bank deposits during the normal course of business and is consistent with its Investment Policy.
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, CPA would not be able to recover the value of the investment or collateral securities that are in possession of an outside party. Investment securities are exposed to custodial credit risk if the securities are uninsured, are not registered in CPA’s name, and are held by the counterparty. CPA does not believe it is exposed to significant custodial credit risk arising from its investments in LAIF.
4. ACCOUNTS RECEIVABLE
Accounts receivable were as follows:
The majority of account collections occur within the first few months following customer invoicing. CPA estimates that a portion of the billed amounts will not be collected. The allowance for uncollectible accounts at the end of a period includes amounts billed during the current and prior fiscal years.
The State Budget Act of 2022 appropriated additional funds from the federal American Rescue Plan Act to support the establishment of the California Arrearage Payment Program (CAPP 2022) and extended the eligibility period to cover electricity bills for active residential customers issued between March 4, 2020, and December 31, 2021. CPA’s active residential customers received a total of $10.4 million of 2022 CAPP funding in 2023. The allowance for uncollectable accounts as of June 30, 2022, was adjusted to reflect the 2022 CAPP payment.
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
24 5. LEASE
In June 2017, GASB issued a new standard related to leases, which was codified into GASB Statement No. 87, Leases. GASB 87 establishes a single model for lease accounting based on the principle that leases are financings of the right-to-use an underlying asset. It requires government entity lessees to recognize lease obligations as lease liabilities and intangible right-to-use lease assets on the Statement of Net Position, and lease payments will reduce the lease liability and flow through the Statement of Activities as amortization expense and interest expense. A corresponding lease asset is recorded in the Statement of Net Position, which will be amortized over the lease term.
In FY2021-2022, CPA adopted the provisions of GASB Statement No 87. As such CPA recognized a lease obligation and a right-to-use asset for agreements whereby CPA obtained the right to the present service capacity of underlying assets and the right to determine the nature and manner of underlying assets’ use for a period of one year or greater. Below is a description of these lease arrangements:
Property Lease
CPA entered into an agreement to lease approximately 11,000 square feet of office space in Los Angeles, California for 8 years, commencing in March 2021. Monthly base rent payments are approximately $32,000 in the first year of the lease and are subject to 3% annual rent escalations on each anniversary of lease commencement. The lease expires in February 2029. CPA also pays a pro-rata share of operating expenses and property taxes, which are not included in the measurement of the lease liability as they are variable in nature. The Company paid $20,000 and $7,000 in FY2022-23 and FY2021-2022, respectively, for those variable costs.
As of June 30, 2023, the Company has reported $2,202,000 in right-of-use (ROU) intangible assets, net of amortization, and $2,659,000 in lease liabilities related to this agreement.
Amortization expense was $383,000 and Interest Expense was $68,000 for the right to use the office space during the fiscal year.
As of June 30, 2022, the Company has reported $2,585,000 in ROU intangible assets, net of amortization, and $3,006,000 in lease liabilities related to this agreement. Amortization expense was $383,000 and Interest Expense was $85,000 for the right to use the office space during the fiscal year.
Intangible ROU assets and ROU liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. As the lease does not provide an implicit rate, an incremental borrowing rate of 2.4% was used based on the information available at the adoption of GASB 87 in determining the present value of future payments.
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
25 5. LEASE (continued)
CPA has the option to extend the lease for two additional years. The table below represents the future lease principal and interest payments under this agreement.
Storage Contract Arrangements
In providing electricity to its customers, CPA has entered into four energy storage agreements which achieved commercial operation as of June 2023. Through these agreements, CPA obtains the right to control certain aspects of the nature and manner and use of the underlying facilities.
The monthly payments made by CPA are variable and based on the performance of the underlying assets including the plant’s available capacity, operating charging efficiency, and the seller’s responsiveness to CPA’s charging and discharge instructions. The variable payments under energy storage agreements are recognized as part of the cost of energy on the Statement of Revenues, Expenses, and Changes in Net Position.
Variable payments for the energy storage agreements totaled approximately $32,023,000 and $7,799,000 in FY 2022-23 and FY 2021-22, respectively.
6. CAPITAL ASSETS
Capital asset activities for the years ended June 30, 2023 and 2022, were as follows:
Year ended June 30, Principal Interest Total
2024 403,141 $ 59,437 $ 462,578 $
2025 426,955 49,501 476,456
2026 451,767 38,982 490,749
2027 477,612 27,860 505,472
2028 504,535 16,101 520,636
2029 395,199 3,998 399,197
$ 195,879 2,659,209 $ 2,855,088 $
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
26 6. CAPITAL ASSETS (continued)
Depreciation and amortization expenses are included under general and administration on the Statements of Revenues, Expenses and Changes in Net Position.
7. DEBT
County of Los Angeles Funding Agreement
In August 2017, CPA and the County of Los Angeles executed a memorandum of understanding (MOU) to provide a non-interest-bearing loan to CPA in an amount not to exceed $10 million to be repaid on June 30, 2018. In April 2018, the County’s Board of Supervisors approved an extension of the repayment term of the loan to June 30, 2020. In August 2018, the County’s Board of Supervisors approved a further extension of repayment of the loan to September 30, 2020. The purpose of the loan was to investigate the feasibility of implementing a community choice aggregation program as well as to provide for other working capital needs. In September 2020 CPA repaid the outstanding loan balance of $9,945,750 to the County of Los Angeles. As of June 30, 2021, there was no outstanding loan balance under the MOU.
In August 2021, CPA and the County of Los Angeles entered into a Funding Agreement under which the County of Los Angeles provided a loan of $30 million to CPA, and the loan plus applicable interest was repaid in FY 2021-22. As of June 30, 2022, there was no outstanding loan balance under the Funding Agreement.
River City Bank Credit Facility
In August 2018 CPA entered into a $20 million Credit Agreement with River City Bank. The Credit Agreement is a revolving credit facility that CPA uses to provide letters of credit and to borrow funds to provide working capital. The Credit Agreement expired in August 2019.
In April 2019 CPA entered into the First Amendment to the Credit Agreement with River City Bank (First Amendment). The First Amendment increased the available credit facility amount from $20 million to $37 million, extended the term of the agreement through March 31, 2021, and reduced the borrowing rate and collateral posting obligation.
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CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
27 7. DEBT (continued)
In April 2021 CPA entered into the Amended and Restated Credit Agreement with River City Bank (Restated Credit Agreement). The Restated Credit Agreement renewed the $37 million credit facility and extended the term to March 31, 2022. This Restated Credit Agreement was terminated in September 2021 pursuant to entering a new credit agreement with JP Morgan Chase Bank.
JP Morgan Chase Bank Credit Facility
In September 2021, CPA entered into an $80 million Revolving Credit Agreement with JP Morgan Chase and terminated its $37 million Restated Credit Agreement with River City Bank.
The Revolving Credit Agreement provides a revolving borrowing and letter of credit facility which can be used for working capital purposes and to post collateral.
In September 2022, CPA drew $60 million on its $80 million JP Morgan Chase credit facility.
CPA repaid $20 million of the loan in September 2022, and an additional $40 million was repaid in October 2022.
In January 2023, CPA drew $35 million on its $80 million JP Morgan credit facility and repaid it in the same month. As of June 30, 2023, CPA had no loans outstanding under the credit facility and is in compliance with credit covenants.
In June 2023, CPA amended the credit agreement with JP Morgan to increase the size of the facility to $160 million and extend the expiry of the agreement from October 31, 2023 to March 31, 2024. CPA intends to arrange a new bank credit facility to replace its current facility effective April 1, 2024.
Loan principal activity and balances were as follows for the following direct borrowings:
Agenda Page 222
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
28 8. DEFINED CONTRIBUTION RETIREMENT PLAN
The Clean Power Alliance of Southern California Plan (Plan) is a defined contribution retirement plan established by CPA to provide benefits at retirement to its employees. The Plan is administered by Nationwide Retirement Solutions. Currently, the employer contribution is 6% of the employee’s salary plus an additional 4% employer match contribution, for a maximum annual employer contribution to the Plan equal to 10% of the employee’s salary. As of June 30, 2023, there were 63 plan members. CPA contributed $994,000 and $675,000 during the years ended June 30, 2023 and 2022, respectively. Plan provisions and contribution requirements are established and may be amended by the Board of Directors.
9. RISK MANAGEMENT
CPA is exposed to various insurable risks of loss related to torts; theft of, damage to, and destruction of assets; and errors and omissions. During the year, CPA purchased insurance policies from investment-grade commercial carriers to mitigate risks that include those associated with earthquakes, theft, general liability, errors and omissions, and property damage. Settled claims have not exceeded the CPA’s commercial liability in any of the past four years. There were no significant reductions in coverage compared to the prior year.
On July 12, 2018, CPA’s Board adopted the Energy Risk Management Policy (ERMP). The ERMP establishes CPA’s Energy Risk Program and applies to all power procurements and related business activities that may impact the risk profile of CPA. The ERMP documents the framework by which CPA’s staff and consultants will identify and quantify risk, develop and execute procurement strategies, develop controls and oversight monitor, and measure and report on the effectiveness of the CPA’s Energy Risk Program. Risks covered by the ERMP include market price risk, credit risk, volumetric risk, operational risk, opt-out risk, legislative and regulatory risk, and other risks arising from operating as a Community Choice Aggregation and participating in California energy markets. The Board approved updates to the ERMP in July 2019, July 2020, July 2021, and July 2022.
CPA maintains other risk management policies, procedures, and systems that help mitigate and manage credit, liquidity, financial, regulatory, and other risks not covered by the ERMP.
Credit guidelines include a preference for transacting with investment-grade counterparties, evaluating counterparties’ financial condition, and assigning credit limits as applicable. These credit limits are established based on risk and return considerations under terms customarily available in the industry. In addition, CPA enters into netting arrangements whenever possible and where appropriate obtains collateral and other performance assurances from counterparties.
Agenda Page 223
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
29 10. PURCHASE COMMITMENTS
POWER AND ELECTRIC CAPACITY
In the ordinary course of business, CPA enters into various power purchase and energy storage agreements in order to acquire renewable and other energy and electric capacity. The price and volume of purchased power may be fixed or variable. Variable pricing is generally based on the market price of electricity at the date of delivery. Variable volume is generally associated with contracts to purchase energy from as-available resources such as solar, wind and hydro-electric facilities.
CPA enters into power purchase and energy storage agreements in order to comply with state law and elective targets for renewable and greenhouse gas (GHG) free products and to ensure stable and competitive electric rates for its customers.
The following table represents the expected, undiscounted, contractual commitments for energy storage, power, and electric capacity outstanding as of June 30, 2023:
The totals are rounded to the nearest hundredth.
As of June 30, 2023, CPA had non-cancellable contractual commitments to contract and professional service providers through August 31, 2026, for services yet to be performed. Fees associated with these contracts are based on volumetric activity and are expected to be approximately $4.2 million.
Year ended June 30,
2024 1,038,393,000 $
2025 738,052,000 $
2026 644,306,000 $
2027 567,226,000 $
2028 499,751,000 $
2029 -44 5,313,260,000 $
$ 8,800,988,000
Agenda Page 224
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
30 11. JOINT VENTURE
In July 2022, CPA’s Board of Directors authorized CPA to join California Community Choice Financing Authority (CCCFA) as a Founding Member. CPA joined CCCFA in September 2022 and participates in the Joint Powers Agreement with CCCFA along with Central Coast Community Energy, East Bay Community Energy, Marin Clean Energy, Pioneer Community Energy and Silicon Valley Clean Energy.
CCCFA was formed as a conduit issuer to assist its members by undertaking the financing or refinancing of energy prepayments that can be financed with tax-advantaged bonds on behalf of one or more of the members by, among other things, issuing or incurring bonds and entering into related contracts with its members. No debt, liability, or obligation of CCCFA is considered a debt, liability, or obligation of any member of CCCFA. Any debt or liability incurred by CCCFA on behalf of a member to prepay for renewable energy is not a debt or liability of that member.
Furthermore, the assets of CCCFA in the form of prepaid energy or reserves held by the respective bond trustees for any prepayment transaction undertaken on behalf of a member do not constitute an asset or reserve of that member.
In February 2023, CCCFA issued a first set of bonds on behalf of CPA in the par amount of $998,780,000 and in June 2023 issued a second set of bonds on behalf of CPA in the par amount of $958,290,000. The proceeds were used to finance energy purchases that will flow to CPA over a term of 30 years. CPA will purchase energy from CCCFA in the same manner as CPA purchases energy from other suppliers. The outstanding purchase commitments related to these financings are included in Note 10.
Each member of CCCFA is responsible for paying an equal portion of CCCFA’s general and administrative operating costs as determined by its board. During the year ending June 2023, CPA contributed approximately $68,000 to CCCFA to assist in its operating activities.
CCCFA was created on June 25, 2021, and its financial statements of CCCFA are available online at http://www.cccfa.org/keydocuments.html.
12. FUTURE GASB PRONOUNCEMENTS
The requirements of the following GASB Statements are effective for future fiscal years ending after June 30, 2023:
GASB has approved GASB Statement No. 100, Accounting Changes and Error corrections – An Amendment of GASB Statement No. 62 and GASB Statement No. 101, Compensated Absences When they become effective, the application of these standards may result in restating of these financial statements. Management is evaluating the effects of these new pronouncements.
Agenda Page 225
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2023 AND 2022
31 13. SUBSEQUENT EVENTS
On September 27, S&P Global Ratings issued CPA an Investment Grade Credit Rating of “A-“ with a Stable Outlook. This rating is considered Middle Investment Grade, four notches above the lowest Investment Grade Rating (BBB-) and seven notches below the highest Investment Grade Rating (AAA). This rating is a significant milestone for CPA and management believes it will have a positive impact on CPA’s relationships with energy suppliers.
Agenda Page 226
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
JULY 1, 2022 THROUGH JUNE 30, 2023
2022/23 YTD Amended
Budget Variance
(Under) Over
2022/23 YTD Amended
Budget Variance %
(Under) Over
2022/23 YTD
Amended Budget
2022/23 YTD
Actual
2022/23 Annual
Amended Budget
2022/23 Remaining
Amended Budget
2022/23 Remaining
Amended Budget %
Operating revenues
Revenue - electricity, net
Other revenues
$ 1,182,869,000
2,742,000
1,185,611,000
$ 1,165,886,425
1,890,831
1,167,777,256
$ (16,982,575)
(851,169)
(17,833,744)
99%
69%
98%
$ 1,182,869,000
2,742,000
1,185,611,000
$ 16,982,575
851,169
17,833,744
1%
31%
Total operating revenues 2%
Energy costs
Energy procurement
Total energy costs
1,056,282,000
1,056,282,000
1,053,915,579
1,053,915,579
(2,366,421)
(2,366,421)
100%
100%
1,056,282,000
1,056,282,000
2,366,421
2,366,421
0%
0%
Operating revenues less energy costs 129,329,000 113,861,678 (15,467,322) 88% 129,329,000 15,467,322 12% Operating Expenditures
Staffing
Technical services
Legal services
Other professional services
Communications and outreach
Mailers
Billing data manager
SCE services
13,976,000
1,436,000
1,243,000
1,902,000
2,018,000
1,346,000
10,518,000
2,116,000
4,663,000
5,877,000
45,095,000
13,285,796
1,227,478
689,605
726,159
1,019,769
617,507
10,476,663
2,306,466
1,815,630
2,518,280
34,683,353
(690,204)
(208,522)
(553,395)
(1,175,841)
(998,230)
(728,493)
(41,337)
95%
85%
55%
38%
51%
46%
100%
109%
39%
43%
77%
13,976,000
1,436,000
1,243,000
1,902,000
2,018,000
1,346,000
10,518,000
2,116,000
4,663,000
5,877,000
45,095,000
690,204
208,522
553,395
1,175,841
998,230
728,493
5%
15%
45%
62%
49%
54%
0%
-9%
61%
57%
23%
41,337
190,466 (190,466)
2,847,370
3,358,720
10,411,647
Customer programs
General and administrations
Total operating expenditures
(2,847,370)
(3,358,720)
(10,411,647)
Operating income 84,234,000 79,178,325 (5,055,676) 94% 84,234,000 5,055,676 6% Non-operating revenues (expenditures)
Interest income 486,000
(732,000)
-
1,770,273
(653,566)
(739)
1,284,273
78,434
364%
89%
0%
486,000
(732,000)
(1,284,273)
(78,434)
739
-264%
11%
0%
Finance and interest expense
Other Income and Expense (739)
Total non-operating revenues (expenditures) (246,000) 1,115,968 1,361,968 -454% (246,000) (1,361,968) 554% Change in net position 83,988,000 80,294,292 (3,693,707) 96% 83,988,000 3,693,708 4% Other uses
Capital outlay
Depreciation and Amortization
Total other uses
225,000
(622,000)
(397,000)
84,385,000
78,404
(601,579)
(523,175)
80,817,468
(146,596)
20,421
(126,175)
(3,567,532)
35%
97%
132%
96%
225,000
(622,000)
(397,000)
84,385,000
146,596
(20,421)
126,175
65%
3%
-32%
Change in fund balance $ $ $ $ $ 3,567,532 4%
Agenda Page 227
FY 2022-23 Financial Results &
Initial 2024 PCIA/SCE Rates Outlook
November 2, 2023
Agenda Page 228
Summary
CPA received a “clean” audit opinion of its FY 2022-23 financial results from its Auditor, Baker Tilly.
Highlights;
CPA increased its net position to $221.5 million over the fiscal year, an increase of $80.3 million
As of June 30, 2023, CPA had $292.6 million of liquidity, up from $134 million as of June 30, 2022
On September 27, 2023 CPA received an A- issuer credit rating from S&P Global Ratings, a very positive outcome for CPA
SCE's October update to its 2024 ERRA Forecast suggests that customer bills will go down in January while bill comparisons to SCE will worsen slightly, though they will still be better than FY 23/24 Board-approved targets
2 Agenda Page 229
Balance Sheet Components, as of June 30:
3 A B C D E F
2023 % Total 2022 % Total % Change
1 Current assets
2 Cash and cash equivalents $ 132,786,879 32.4% 54,537,672 $ 21.6% 143% 3 Accounts receivable, net of allowance 123,259,054 30.0% 96,570,771 38.3% 28% 4 Accrued revenue 87,229,664 21.3% 55,496,791 22.0% 57% 5 Other receivables 0.2% 7,659,464 828,416 3.0% -89%
6 Prepaid expenses 46,152,849 11.3% 6,138,404 2.4% 652% 7 Deposits 15,951,306 3.9% 26,115,529 10.4% -39%
8 Restricted cash 1,200,000 0.3% 2,400,000 1.0% -50%
9 Total current assets 407,408,168 99.3% 248,918,632 98.7% 64% 10 Noncurrent assets
11 Capital assets, net of depreciation 0.1% 674,257 544,973 0.3% -19% 12 Intangible - right-to-use lease asset 2,201,743 0.5% 2,584,651 1.0% -15% 13 Deposits 0.0% 88,875 0.0% 88,875 0%
14 Total noncurrent assets 2,835,591 0.7% 3,347,784 1.3% -15% 15 Total assets $ 410,243,759 100% 252,266,416 $ 100% 63% ASSETS
Agenda Page 230
Balance Sheet Components, as of June 30:
4 A B C D E F
2023 % Total 2022 % Total % Change
16 Current liabilities
17 Accounts payable $ 7,008,961 3.7% 4,526,315 $ 4.1% 55% 18 Accrued cost of electricity 159,985,884 84.8% 83,629,207 75.3% 91% 19 Other accrued liabilities 2,774,283 1.5% 2,403,579 2.2% 15% 20 User taxes and energy surcharges due to other governments 8,570,857 4.5% 6,026,358 5.4% 42% 21 Security deposits from energy suppliers 194,700 0.1% 1,013,500 0.9% -81% 22 Unearned program funds 4,352,484 2.3% 3,504,033 3.2% 24% 23 Lease liability, current 403,141 0.2% 346,988 0.3% 16% 24 Total current liabilities 183,290,311 97.1% 101,449,979 91.4% 81% 25 Noncurrent liabilities
26 Supplier security deposits 3,149,860 1.7% 6,904,000 6.2% -54% 27 Lease liability, noncurrent 2,256,068 1.2% 2,659,209 2.4% -15% 28 Total noncurrent liabilities 5,405,928 2.9% 9,563,209 8.6% -43% 29 Total liabilities $ 188,696,239 100% 111,013,188 $ 100% 70%
LIABILITIES
Agenda Page 231
5 Balance Sheet Components, as of June 30:
Agenda Page 232
Select Financial Indicators
CPA made important progress towards meeting its Reserve Policy targets Days liquidity on hand (DLOH) increased from 58 to 97 days. Target range = 120-150 days The Reserve percentage increased from 18% to 20%. Target range = 30-50% 6 Agenda Page 233
Budget to Actual Analysis
Revenue from retail sales of electricity and energy procurement were in line with the Amended Budget. Energy procurement costs were in-line the Amended Budget.
Results were negatively impacted by the September 2022 heat wave, gas and energy price shocks in December 2022 and January 2023, higher than budgeted renewable energy costs, and an accrued but yet to be assessed Resource Adequacy compliance penalty.
Operating revenue less energy costs (gross margin) was $15.5 million or 12% below the Amended Budget
7 A B C D E
2022/23 YTD
Amended Budget
2022/23 YTD
Actual
2022/23 Amended
Budget Variance
(Under) Over
2022/23 Amended
Budget Variance %
(Under) Over
Operating revenues
1 Revenue - electricity, net $ 1,182,869,000 $ 1,165,886,425 $ (16,982,575) -1% 2 Other revenues 2,742,000 1,890,831 (851,169) -31%
3 Total operating revenues 1,185,611,000 1,167,777,256 (17,833,744) -2% Energy costs
4 Energy procurement 1,056,282,000 1,053,915,579 (2,366,421) 0% 5 Total energy costs 1,056,282,000 1,053,915,579 (2,366,421) 0% 6 Operating revenues less energy costs 129,329,000 113,861,678 (15,467,322) -12% Agenda Page 234
Budget to Actual Analysis
8 Operating expenses were 23% under the Amended Budget due primarily to non-utilization of contingencies, conservative use of funds, the performance of services later in the year than budgeted, and lower staffing costs
A B C D E
2022/23 YTD
Amended Budget
2022/23 YTD
Actual
2022/23 Amended
Budget Variance
(Under) Over
2022/23 Amended
Budget Variance %
(Under) Over
Operating Expenditures
7 Staffing 13,976,000 13,285,796 (690,204) -5%
8 Technical services 1,436,000 1,227,478 (208,522) -15% 9 Legal services 1,243,000 689,605 (553,395) -45%
10 Other professional services 1,902,000 726,159 (1,175,841) -62% 11 Communications and outreach 2,018,000 1,019,769 (998,230) -49% 12 Mailers 1,346,000 617,507 (728,493) -54%
13 Billing data manager 10,518,000 10,476,663 (41,337) 0% 14 SCE services 2,116,000 2,306,466 190,466 9%
15 Customer programs 4,663,000 1,815,630 (2,847,370) -61% 16 General and administrations 5,877,000 2,518,280 (3,358,720) -57% 17 Total operating expenditures 45,095,000 34,683,353 (10,411,647) -23% Operating income 84,234,000 79,178,325 (5,055,676) -6%
Agenda Page 235
Budget to Actual Analysis
CPA increased the net position by $80 million, 4% below the amended budget Interest income exceeded the budget due to higher interest rates and larger cash balances than budgeted.
9 A B C D E
2022/23 YTD
Amended Budget
2022/23 YTD
Actual
2022/23 Amended
Budget Variance
(Under) Over
2022/23 Amended
Budget Variance %
(Under) Over
Non-operating revenues (expenditures)
18 Interest income 486,000 1,770,273 1,284,273 264%
19 Finance and interest expense (732,000) (653,566) 78,434 -11% 20 Other Income and Expense - (739) (739) 0%
21 Total non-operating revenues (expenditures) (246,000) 1,115,968 1,361,968 -554% 22 Change in net position 83,988,000 80,294,292 (3,693,707) -4% Other uses
23 Capital outlay 225,000 78,404 (146,596) -65%
24 Depreciation and Amortization (622,000) (601,579) 20,421 -3% 25 Total other uses (397,000) (523,175) (126,175) 32%
26 Change in fund balance $ 84,385,000 $ 80,817,468 $ (3,567,532) -4% Agenda Page 236
CPA Credit Rating
Agenda Page 237
Overview
CPA established the achievement of an investment-grade (IG) credit rating as an important organizational goal
On September 27, S&P Global Ratings published CPA’s credit rating report on its website, awarding CPA an “A-” credit rating with a Stable Outlook
11 Agenda Page 238
Rating Report Highlights
CPA strengths supporting A- Issuer Credit Rating:
• Continued improvements to CPA’s bottom line and rising liquidity position • Strong governance, including robust financial and operational forecasting and proactive risk management
• A diverse portfolio of energy suppliers and projects
• Cost-of-Service based ratemaking combined with a historically stable customer base • Low exposure to environmental and non-compliance risks due to CPA’s high levels of renewable and carbon-free energy supply
• No outstanding debt
Areas requiring continued diligence and focus:
• Generate continued surpluses until Reserve Policy targets are met • Continued Rate Competitiveness
• Low and stable opt outs
12 Agenda Page 239
Outlook
Current financial projections indicate that CPA can achieve its Reserve Policy targets by June 2026, while maintaining competitiveness with SCE CPA continues to work with counterparties to improve credit and payment terms. Discussions are now underway to extend CPA’s bank line of credit
CPA staff are developing a framework and strategy to maintain the credit rating once CPA’s Reserve Policy targets have been met, taking into account some of the risk factors identified in the S&P report 13 Agenda Page 240
2024 PCIA/SCE Rates:
First Look
Agenda Page 241
2024 ERRA Forecast October Update
On October 13, SCE filed the October update to its 2024 ERRA Forecast application
The October update is the first detailed look at the 2024 PCIA and SCE’s 2024 forecasted generation rate, but is subject to change o SCE is expected file corrections to its rate forecasts on November 15 SCE is requesting a January 1, 2024 implementation for its generation rates and the PCIA
Staff has conducted an initial analysis of:
(1)The directional impact on customer bills based on the changing PCIA and (2)Bill comparisons based on updated SCE generation rates plus the new 2024 PCIA Preliminary takeaway: Customer bills are likely to go down while comparisons with SCE will likely worsen but still be better than the FY 2023/24 Board approved targets
Agenda Page 242
PCIA Impacts
The proposed 2017 and 2018 vintage PCIA rates in 2024 will continue to be negative and preliminarily decline by another ½ cent, providing customers a PCIA line-item credit of approximately 1 cent
This further PCIA decline means residential CPA customers will see bill reductions of ~1.6% beginning January 2024 with no action required by CPA
The primary driver for the decrease in the 2024 PCIA is 106% higher projected system RA prices and 151% higher RPS prices in 2024, partially offset by 24% lower market forward energy prices
Rate Product Current As of 1/1/24 % Change
Lean $193.70 $190.50 -1.7%
Clean $195.60 $192.40 -1.6%
100% Green $203.30 $200.10 -1.6%
Average CPA Residential Total Bill
Agenda Page 243
Competitive Impacts
SCE’s average generation rates are preliminarily forecast to decrease by ~8% in 2024 The decreased SCE generation rate will be partially offset by the decreased PCIA, increasing CPA total bill comparisons by ~2%, still below the targets set by the Board during FY23/24 rate setting earlier this year
Lower SCE generation costs are the result of:
o Lower estimated purchased power costs
o Higher estimated revenues from RA and REC sales offset by higher costs for retained RA and RECs Rate
Product Jul 2023 Target Comparison to
SCE Oct 2023 Comparison to
SCE January 2024 Comparison to
SCE
SCE Base $191.53 $203.70 $196.30
Lean $187.70 -2% $193.70 -5% $190.50 -3.0%
Clean $189.60 -1% $195.60 -4% $192.40 -2.0%
100% Green $197.30 +3% $203.30 0% $200.10 +1.9%
Average Total Residential Bill
Agenda Page 244
The Board authorized staff to update rates for the new member communities – Hermosa Beach, Monrovia, and Santa Paula – to maintain the target bill comparisons set in June 2023 for FY 2023/24 Staff will be updating these rates as authorized prior to the start of enrollment in March 2024
Based on the October SCE forecast, the new member communities are expected to be able to cover their cost of service at these rates 18 Rates for new member communities
Agenda Page 245
Next Steps
CPA is responding to SCE’s ERRA filing and will monitor any new issues that emerge
o A number of errors have been identified in SCE’s October filing; staff will update the rate analysis after SCE files a November 15 advice letter with corrected rate information
Actual SCE generation rates and the PCIA will be finalized in December, unless the ERRA proceeding is delayed
Staff is beginning to consider CPA’s rate setting strategy for fiscal year 2024/25 which begins next July
o Staff will return in the spring with rate scenarios that consider CPA’s Reserve Policy targets, CPA’s competitive position and other factors Agenda Page 246
Thank You! Questions?
Agenda Page 247
Background and Benefits
21 What is an investment-grade (IG) credit rating?
o A credit rating is an opinion published by an independent rating agency (S&P, Moody’s, or Fitch) that assesses the likelihood an entity will repay its debts o Entities with an IG rating are considered the best credit risks and are able to attract financing at the lowest cost and from the greatest number of lenders and investors Receiving an IG credit rating will yield many benefits to CPA o Increases the number and quality of financial institutions willing to finance CPA’s long-term renewable and energy storage projects, thus reducing costs for developers and allowing them to provide CPA with a potentially wider variety of lower-cost projects to choose from o Increases energy supplier participation in CPA’s short-term solicitations for renewable and conventional energy and RA, and potentially expands terms they are willing to offer thus increasing competition and potentially reducing costs
o Potentially reduces or eliminates certain collateral posting obligations, thus freeing up cash o May lower costs associated with CPA’s bank line of credit o Enhances CPA’s reputation as a stable, financially sound leader in the energy industry, leading to greater trust and influence in the state legislative and regulatory arenas Agenda Page 248
S&P Credit Rating Process
22 In December 2022, Staff engaged S&P to perform
a confidential Credit Assessment for CPA o Staff provided financial and operations data to S&P and engaged in credit Q&A with S&P analysts
o In August 2023, S&P’s rating committee determined that CPA was a “medium investment grade” credit,
corresponding to an A-/A/A+ credit rating
In September 2023, Staff engaged S&P to deliver
a confidential Issuer Credit Rating (ICR), providing
CPA with a final credit rating and ratings report
Staff later directed S&P to convert the confidential
ICR to a public
-facing ICR, which was published
on September 27
Total fee of $50,000 for the credit ratings process
Beginning in September 2024, CPA will pay a
$28,500 annual surveillance fee to S&P to
manage and maintain its public-facing ICR
Agenda Page 249
Management Report
To: Board of Directors
From: Ted Bardacke, Chief Executive Officer
Subject: Management Report
Date: November 2, 2023
CPA Organizational Milestones and Awards
CPA achieved two organizational milestones last month – and celebrated two employees who contributed to those milestones with annual employee recognition awards.
First, CPA is finalizing the last transaction necessary to achieve compliance with its 2024 Year Ahead Resource Adequacy requirement despite extremely challenging market conditions and intense competition for resources. In addition to contributing to the reliability of California’s electricity grid, the compliant filing with the California Public Utilities Commission means that CPA is on track to begin service to as many as three new communities in 2025,1 should those cities decide during the course of November to join CPA. Relatedly, Ted Tardif, Director of Power Origination, received CPA’s annual “Brilliance Award” that recognizes the performance and achievement of a team member who has had a significant impact on CPA. Ted is primarily responsible for short term procurement, including Resource Adequacy and Renewable Energy, and compliance with state reporting requirements for these products.
Second, CPA has made extraordinary strides in both retention and hiring over the past 12 months. October marked the eleventh straight month with CPA experiencing no voluntary staff departures, while over the same period the organization has filled 14 of its 24 open positions, with 2 to 4 more new staff expected to start in November. Relatedly, Mili Shah, People and Culture Manager, received CPA’s annual “Bolt Award” that recognizes a team member who made a significant impact to a process, a project, or 1 La Cañada Flintridge, Lynwood, and Port Hueneme.
Agenda Page 250
Board of Directors Management Report
general culture in the workplace. Mili is primarily responsible for recruitment, managing the hiring process, and the onboarding of new staff, among other duties.
Daggett Solar + Storage Grand Opening
CPA recently celebrated the grand opening of its newest Solar + Storage project, the Daggett Clean Energy Complex, located on the site of a decommissioned natural gas power plant just east of Barstow, CA. Developed by Clearway Energy Group, Daggett is 482MW of solar energy production combined with 280MW of energy storage. CPA is the facility’s largest offtaker, contracted to purchase 188MW of solar energy and 113.5MW of battery energy storage, enough to power approximately 85,000 homes in Southern California. Daggett is the 9th new renewable energy and/or storage facility built exclusively for, or in part for, CPA to have come online since the organization’s inception, out of a total of 34 new build contracts signed to date. CPA expects to have another 10 projects come online in the next 12 months, including several located in our service territory.
To learn more about the Daggett project, read the press release here. Other offtakers include CCAs MCE and East Bay Community Energy, municipal utilities in the cities of Cerritos and Vernon, direct access provider Constellation, and Investor-Owned Utility PG&E.
Preferred Energy Option (Default) Change Update
The second month of official notifications of changes to the preferred energy option in Alhambra, Paramount, and Unincorporated Los Angeles County2 -- which went into effect on a customer’s meter read date in October – has produced noticeable but limited changes to customer behavior. Through October 23, 0.16% of customers subject to the default change have opted out of CPA service while 0.18% have changed their rate to Lean Power. No appreciable difference in customer behavior has yet been seen across the three different jurisdictions.
In support of the changes, CPA staff has engaged in the following activities:
2 Non-residential customers only.
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Board of Directors Management Report
• Sent two postcards to all impacted customers alerting them to the change. The first postcard was sent in early September and the second postcard was sent in mid October. Both postcards gave information about the environmental benefits of the energy option change, what to expect with rates, and clear instructions on how to select another energy option if desired;
• Mailed and emailed over 500 large business customers in unincorporated Los Angeles in June and July to alert them early to the upcoming change and give instructions on how to select another energy option if desired; • Created and distributed a toolkit of customized social media assets for use on LinkedIn, Facebook, X(Twitter) and Instagram with copy in English, Spanish, and Chinese to staff in Alhambra, Paramount, and unincorporated Los Angeles County, to enable each city to share the news of the preferred energy option rate change on their websites and social media channels;
• Met with staff from each community at least twice to educate them about the upcoming change, answer questions, and provide the communication toolkit; • Participated in seven community events in the impacted communities to educate customers about the upcoming preferred energy option change; • Participated in nine chamber of commerce meetings to share news of the upcoming preferred energy option change;
• Created a dedicated CPA webpage in English, Spanish, and Chinese with information specific to communities changing their energy options, including fact sheets with FAQs and clear directions on how to select another energy option if desired;
• Shared information about the preferred energy option change on CPA’s own social media channels;
• Included news of the preferred energy option change as a story in CPA’s October newsletter
Monthly Financial Performance
CPA earned $7.3 million in the month of August, $7.1 million below budgeted earnings of $14.4 million. August results were impacted mostly by higher than anticipated energy
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Board of Directors Management Report
costs to import Resource Adequacy into California, higher than budgeted grid operation charges levied by the California Independent System Operator (CAISO), and an accounting adjustment to renewable energy costs. Like in July, cooler than normal temperatures in September means that CPA will likely have below budget earnings for the first quarter of the 2023/24 fiscal year. The monthly financial dashboard is provided as Attachment 1 to this report.
Customer Participation Rate and Opt Actions
As of October 24, 2023, CPA’s overall participation rate was 93%, unchanged from the previous month. CPA had 1,006,482 active customers, up 75 customers since September. Opt-out levels for the month – 451 accounts through the third week of October – were down slightly from September and about half the typical monthly opt-out levels during the fourth quarter of the year. New accounts (“move-ins”) were lower than closed accounts (“move-outs”) by 599 customers in September. Participation rates and active accounts by jurisdiction are provided in Attachment 2 of this report.
Customer Service Center Performance
Incoming calls to CPA’s Customer Service Center during October were down compared to the previous month and on par with typical months in the fourth quarter of the year.
Through October 24, CPA received 1,939 calls compared to 3,124 calls in September. 95% of calls were answered within 45 seconds, up from 87% in the previous month, and the average wait time was 11 seconds, down from 22 seconds in 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 3. The list includes all open contracts as well as all contracts, open or completed, executed in the past 12 months.
ATTACHMENTS
1. Monthly Financial Dashboard – August 2023
2. Participation Rates by Jurisdiction
3. Non-Energy Contracts Executed under CEO’s Authority
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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 represents the difference between revenues and expenditures before interest income and expense, and capital expenditures
Cash and Cash Equivalents: Includes bank accounts and marketable securities with maturities of less than 90 days.
Year to date (YTD): Represents the fiscal period beginning July 1, 2023 YTD
Aug
2023
Financial Dashboard
Note: Numbers may not sum up due to rounding.
Active Accounts
1,005,437
Participation Rate
93.3%
YTD Sales Volume
2,183 GWh
Aug Volume
1,127 GWh
Agr/Oth
2% Com-Lg
20%
Com-Sm
27%
Res
51%
In August 2023 CPA recorded an operating gain of $7.3 million, $7.1 million less than the budgeted operating gain of $14.4 million provided in the FY 2023/24 budget.
August 2023 revenues were $181.4 million or 0.5% lower than budget. The cost of energy was $170 million or 4% more than the FY2023/24 budget. August cost of energy was higher than the budget primarily due to higher than budgeted costs to import Resource Adequacy into California, higher than budgeted grid operation charges levied by the California Independent System Operator (CAISO), and an accounting adjustment to renewable energy costs in August 2023 reflecting an increase in calendar year 2023 renewable energy costs. Operating costs were 22% below budget for the month mainly due to lower than budgeted spending on general and administrative expenses, customer programs and other services, and the non-utilization of contingencies.
As of August 31, 2023, CPA had $201 million in unrestricted cash and cash equivalents and $159.853 million available in its bank line of credit representing 111 Days Liquidity on Hand.
CPA is financially sound and in compliance with its bank and other credit covenants.
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Preferred Energy Option Participation %
100% Green 93.3%
Clean 94.4%
Lean 91.9%
Total 93.3%
PARTICIPATION BY CITY AND COUNTY
OVERALL CUSTOMER STATUS REPORT
October 25, 2023
Preferred Energy Option Active Accounts Participation % Lean % Clean % 100% Green % Agoura Hills 100% Green 8,082 88.2% 2.7% 0.4% 97.0%
Alhambra 100% Green 34,064 95.5% 1.7% 0.7% 97.6%
Arcadia Lean 22,603 95.4% 99.8% 0.1% 0.1%
Beverly Hills 100% Green 18,644 97.4% 2.0% 0.1% 98.0%
Calabasas 100% Green 9,708 93.6% 2.6% 0.3% 97.1%
Camarillo 100% Green 28,427 90.0% 1.5% 0.1% 98.4%
Carson Clean 29,476 96.3% 1.4% 98.4% 0.2%
Claremont 100% Green 12,682 91.5% 3.0% 0.2% 96.7%
Culver City 100% Green 19,183 95.0% 4.1% 1.1% 94.8%
Downey Clean 36,730 95.0% 1.6% 98.3% 0.1%
Hawaiian Gardens Clean 3,628 95.3% 1.1% 98.6% 0.3%
Hawthorne 100% Green 28,444 97.1% 0.5% 1.4% 98.1%
Los Angeles County 100% Green 299,174 94.8% 2.1% 29.4% 68.5% Malibu 100% Green 7,004 95.1% 3.0% 0.4% 96.5%
Manhattan Beach 100% Green 15,441 96.0% 2.9% 0.2% 96.9% Moorpark Clean 11,405 85.7% 3.1% 96.3% 0.6%
Ojai 100% Green 3,510 89.2% 6.2% 1.2% 92.6%
Oxnard 100% Green 55,424 92.8% 4.0% 0.9% 95.1%
Paramount Clean 15,777 96.7% 0.1% 99.0% 0.9%
Redondo Beach 100% Green 33,253 96.2% 2.1% 0.1% 97.8%
Rolling Hills Estates 100% Green 3,487 91.3% 7.3% 1.6% 91.1% Santa Monica 100% Green 54,779 95.5% 3.4% 0.8% 95.8%
Sierra Madre 100% Green 4,950 92.0% 5.7% 1.6% 92.7%
Simi Valley Lean 43,285 89.5% 99.6% 0.1% 0.2%
South Pasadena 100% Green 11,631 95.0% 3.9% 0.7% 95.4%
Temple City Lean 12,575 95.8% 99.7% 0.1% 0.2%
Thousand Oaks 100% Green 44,431 83.6% 8.0% 1.5% 90.4%
Ventura 100% Green 43,867 89.1% 4.8% 1.6% 93.6%
Ventura County 100% Green 33,295 86.8% 6.6% 1.4% 92.0%
West Hollywood 100% Green 26,495 97.0% 2.5% 0.4% 97.1%
Westlake Village Lean 3,728 88.3% 99.5% 0.1% 0.5%
Whittier Clean 31,300 94.1% 1.9% 97.9% 0.2%
Total 1,006,482 93.3%
Energy Option Active Accounts Participation %
100% Green 679,686 67.5%
Clean 218,272 21.7%
Lean 108,524 10.8%
Total 1,006,482 100.0%
OVERALL PARTICIPATION BY ENERGY OPTION
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Vendor Purpose Month NTE Amount Status Notes
SAESHE, Inc. Event support for Street Teams October 2023 $7,800 Active Langan GIS services (end date extension only) October 2023 $0 Active Grand Tower LLC Storage space lease September 2023 $6,000 Active Windstream Services, LLC Office Telephone Service September 2023 $12,924 Active Sigma Computing Analytics platform September 2023 $35,612 Active AiQueous, LLC Salesforce implementation August 2023 $7,375 Active Salesforce Stakeholder Relationship Management
application subscription August 2023 $15,300 Active Renewal Bloom Ads Media Buying July 2023 $50,000 Active
Nextgrid Strategies Staff Augmentation for 2023 Clean Energy RFO Evaluation and Contract Negotiations July 2023 $100,000 Active Advance Dev. LLC Website Maintenance Services July 2023 $75,000 Active Workable Job applicant tracking system July 2023 $13,308 Active Lexis Nexis Legal Research Online Platform July 2023 $2,492 Active Hall Energy Law PC Energy Procurement Counsel July 2023 $125,000 Active Renewal Burke, Williams, Sorenson, LLP
Legal Services Agreement (Brown Act,
public entity governance issues and other
legal services)
July 2023 $100,000 Active Renewal
Elite Edge Financial reporting services July 2023 $93,600 Active Salesforce
Additional licenses for Stakeholder
Relationship Management application
subscription
July 2023 $714 Active
MBI Green Leader PR Campaign July 2023 $24,853 Active
Snowflake Inc.
Cloud-Native Elastic Data Warehouse
Service June 2023 $25,000 Active
Adobe Inc. AdobeSign Secure Electronic Signature
Service June 2023 $3,200 Active
Baker Tilly Financial audit services June 2023 $50,000 Active Renewal IHS Market Subscription for CAISO forecasts June 2023 $17,000 Active Renewal Fraser Marketing contract (final renewal) June 2023 ($83,297) Active 14% decrease to Board approved NTE upon renewal
Swanson Martin Bell Legal Services Agreement (general liability) May 2023 $75,000 Active 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 Completed Polsinelli, LLP
Legal Service Agreement (Employment,
Compliance, General Legal Support related
to Commercial Liability, Risk, and
Mitigation issues)
April 2023 $75,000 Active Renewal
Clean Power Alliance
Non-energy contracts executed under Chief Executive Officer authority Rolling 12 months -- Open contracts shown in Bold
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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
Chapman & Cutler, LLP Legal Services (CPA's Credit Agreement) April 2023 $55,000 Active Renewal Salesforce
Additional licenses 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 Completed 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
Davis Wright Tremaine Legal services (regulatory) March 2023 $125,000 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 Completed 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 Museum of Ventura County Event space rental for City Manager Lunch December 2022 $825 Completed S&P Credit assessment December 2022 $37,500 Completed
Meltwater Media analytics and monitoring services November 2022 $13,750 Active Cision Media/PR wire distribution services November 2022 $2,240 Active 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
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