MINUTES
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, November 2, 2023, 2:00 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Board members participated from the following locations:
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91301
Clean Power Alliance
Diana Mahmud Board Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Whittier City Hall
Admin Conference Room
13230 Penn Street
Whittier, CA 90602
Ventura County Government Center
Channel Islands Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Venture, CA 93009
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
Simi Valley City Hall
City Manager’s Conference Room
2929 Tapo Canyon Road,
Simi Valley, CA 93063
CALL TO ORDER & ROLL CALL
Chair Julian Gold called the meeting to order at 2:00 p.m. and Gabriela Monzon, Clerk of the Board, conducted roll call.
PLEDGE OF ALLEGIANCE
Ted Bardacke, Chief Executive Officer, led the pledge of allegiance.
Roll Call
1 Agoura Hills Deborah Klein Lopez Director Remote
2 Alhambra Jeff Maloney Director Present
3 Arcadia Michael Cao Director Present
4 Beverly Hills Julian Gold Chair Present
5 Calabasas David Shapiro
Michael McConville
Director
Alternate Remote
6 Camarillo Susan Santangelo Director Remote
7 Carson Reata Kulcsar Alternate Remote
8 Claremont Corey Calaycay Director Present
9 Culver City Joe Susca Alternate Remote
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November 2, 2023 Minutes
10 Downey Absent
11 Hawaiian Gardens Ramie L. Torres Alternate Remote
12 Hawthorne Alex Monteiro Director Present
13 Hermosa Beach Doug Krauss Alternate Remote
14 Los Angeles County Lindsey Horvath Vice Chair Present 15 Malibu Marianne Riggins Director Remote
16 Manhattan Beach Amy Howorth Director Remote
17 Monrovia Dylan Feik Alternate Remote
18 Moorpark Renee Delgado Director Remote
19 Ojai Betsy Stix Director Remote
20 Oxnard Bert Perello Director Remote
21 Paramount Absent
22 Redondo Beach Absent
23 Rolling Hills Estates Debby Stegura Director Remote
24 Santa Monica Caroline Torosis Alternate Present
25 Santa Paula Jenny Crosswhite Director Remote
26 Sierra Madre Robert Parkhurst Director Present
27 Simi Valley Rocky Rhodes Director Remote
28 South Pasadena Jon Primuth Director Present
29 Temple City Absent
30 Thousand Oaks Absent
31 City of Ventura Liz Campos Director Remote
32 Ventura County Vianey Lopez Vice Chair Remote
33 West Hollywood John Erickson Director Present
34 Westlake Village Absent
35 Whittier Leon Vasquez Alternate Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
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November 2, 2023 Minutes
CONSENT AGENDA
1. Approve Minutes from the October 5, 2023, Board of Directors Meeting
2. Receive and File November 2023 Bill Positions Report
3. Receive and File Monthly Community Advisory Committee Report Motion: Director Erickson, West Hollywood
Second: Director Calaycay, Claremont
Vote: The consent agenda was approved by a roll call vote with abstentions from Directors Stegura and Torres on Item 1.
NOTICE OF PUBLIC HEARING ON DECEMBER 7, 2023 TO CONSIDER A
RESOLUTION TO APPROVE AN IMPLEMENTATION PLAN ADDENDUM ADDING LA CAÑADA-FLINTRIDGE, LYNWOOD, AND/OR PORT HUENEME AND AUTHORIZE
STAFF TO SUBMIT ADDENDUM TO THE CALIFORNIA PUBLIC UTILITIES
COMMISSION
REGULAR AGENDA
4. Approve a 15-Year Renewable Power Purchase Agreement with SunZia Wind PowerCo LLC and Authorize the Chief Executive Officer to Execute the Agreement For Either 500 MW (Option 1) or 575 MW (Option 2)
Lindsay Saxby, Vice President, Power Supply, provided a presentation on the SunZia Wind long-term renewable energy Power Purchase Agreement (PPA).
Pattern Energy, the developer of the 3,515-megawatt SunZia Wind complex in central New Mexico, is constructing a new transmission line to deliver energy to California. Ms. Saxby reviewed the SunZia Wind project details, supporters, valuation, rationale, and options. While SunZia is a large project, Pattern Energy’s portfolio share is comparable to other leading suppliers in CPA’s portfolio. Staff prefers accepting SunZia’s offer for a total of 575 megawatts.
Director Perello asked questions about potential litigation relating to permitting and the impact of renewable energy compliance penalties on member agencies. Mr.
Bardacke noted that the SunZia Wind transmission line is fully permitted, so there is little litigation risk at this point. Ms. Saxby indicated that CPA has exceeded its 2030 Renewables Portfolio Standard (RPS) compliance and will not incur any penalties, nor would member agencies be liable for compliance penalties should they be assessed. In response to Director Crosswhite’s question about excess energy procurement, Ms. Saxby explained that CPA can resell excess energy to other entities. Director Stegura asked about guardrails if Pattern fails to adhere to its requirements under the contract. Ms. Saxby clarified that there are termination and damage provisions in the contract; Pattern is also required to post security to protect CPA through project development and commercial operation. Director Erickson inquired about the impact of potential federal administration changes on the project, and Ms. Saxby indicated that the federal permitting process has already been completed. In response to Director Primuth’s questions, Ms. Saxby clarified that the entire project will go online at the same time and there is a potential for Pattern to finance and sell part of the project. In response to Director Monteiro’s question, staff noted that the transmission line is jointly owned. Vice Chair Horvath, Chair Gold, and Directors Parkhurst and Rhodes expressed support for Option 2 and thanked staff and the RFO Review Team.
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November 2, 2023 Minutes
Motion: Vice Chair Horvath, Los Angeles County
Second: Director Parkhurst, Sierra Madre
Vote: Item 4 (Option 2) was approved by a roll call vote.
5. Receive a Presentation of CPA’s Fiscal Year (FY) 2022-2023 Audited Financial Statements, FY 2022-2023 Budget to Actual Report, and Initial 2024 PCIA and SCE Rate Outlook
David McNeil, Chief Financial Officer, and Matt Langer, Chief Operating Officer, presented FY 2022-2023 financial results and the initial 2024 Power Charge Indifference Adjustment (PCIA) and Southern California Edison (SCE) rates outlook. The Auditor, Baker Tilly, issued a “clean” audit opinion of CPA’s FY 2022- 23 financial results. Mr. McNeil reviewed CPA financial statements and indicators; CPA earned an A- credit rating. Mr. Langer reviewed initial PCIA changes, including projected bill reductions for residential CPA customers of approximately
1.6% beginning in January 2024. Rate comparisons with SCE are expected to worsen, although they are projected to remain better than the FY 2023/24 Board-approved targets. Director Santangelo noted that the Finance Committee met with the auditor and thanked staff for achieving another year of “clean” results.
In response to Director Perello’s questions about SCE service fees, Mr. McNeil explained that the charge reflects SCE’s prolonged lapse in invoicing related to billing and collections; CPA is current with all SCE service fees. Director Parkhurst asked questions on forward market price increases and year ahead market prices for renewable energy, including wind. Mr. Langer explained that the average price for energy decreased by 25% over the last year due to the decrease in natural gas prices. Wind power is scarce in the year-ahead market and short-term renewable energy prices are increasing significantly. In response to Director Monteiro’s question about investing reserve funds, Mr. McNeil indicated that CPA holds interest-earning accounts at the Local Agency Investment Fund (LAIF) and River City Bank. Staff are exploring other investments to increase interest revenues.
Chair Gold emphasized the impact of recent Board decisions, including the implementation of a cost of service approach and prudent rate increases, which have positively contributed to CPA’s credit rating. Director Primuth asked about the budget savings on customer programs, and Mr. Langer clarified that the savings were due to normal delays in program timelines; the total allocated funds ensure appropriate budget authority for the programs.
COMMITTEE CHAIR UPDATES
Director Klein Lopez, Chair, Legislative & Regulatory Committee, thanked staff and Board members for their diligent attention to CPA’s legislative activity and efforts. The Committee has reviewed potential changes to the 2024 Legislative and Regulatory Platform and incorporated the following themes: transmission and distribution planning, regionalization, building decarbonization, and fair rates for CPA customers.
Director Robert Parkhurst, Energy Planning & Resources Committee, thanked staff for their efforts in achieving the largest number of responses to an Request for Offer (RFO) CPA has received.
MANAGEMENT REPORT
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November 2, 2023 Minutes
Mr. Bardacke noted that the Daggett Solar project is now fully functional, and staff expects about 10 more new build contracts to come online in the next year. CPA is fully compliant with all year-ahead RA requirements. Additionally, CPA filled 14 of its 24 open staff positions and achieved 11 straight months without any voluntary staff departures; recognized Mili Shah, People and Culture Manager, and Ted Tardiff, Director, Power Origination.
BOARD MEMBER COMMENTS
Vice Chair Horvath highlighted the significance of CPA Board decisions on the infrastructure, industry, and energy consumption. Director Calaycay congratulated staff for the stable retention levels and expressed gratitude to the Board and present and past leadership for their diligent efforts. Director Maloney applauded CPA’s success and stability.
REPORT FROM THE CHAIR
Chair Gold reflected on CPA’s five years of accomplishments, culminating in a historic PPA, credit rating achievement, and strong financial results.
ADJOURN
Chair Gold adjourned the meeting at 3:41 p.m.