Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, February 15, 2024
1:30 p.m.
Visit CPA’s YouTube Channel to view a Live Stream of the Meeting www.youtube.com/@CPApublicmeetings
*There may be a streaming delay of up to 90 seconds. This is a view-only live stream.
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting remotely at the following locations:
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
Ventura County Government Center
Channel Islands Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Beverly Hills City Hall
Council Office, 4th Floor
455 N. Rexford Drive
Beverly Hills, 90210
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Camarillo City Hall
Office of the Mayor
601 Carmen Drive
Camarillo, CA 93010
Ojai City Hall
Conference Room
401 S Ventura St.
Ojai, CA 93023
Sierra Madre City Hall
Council Chambers
232 W. Sierra Madre Blvd.
Sierra Madre, CA 91024
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
PUBLIC COMMENT: Members of the public may submit their comments by one of the following options:
• Email Public Comment: Members of the public are encouraged to submit written comments on any agenda item to [email protected] up to four hours before the meeting. Written public comments will be announced at the meeting and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting. • Provide Public Comment During the Meeting: The General Public Comment item is reserved for persons wishing to address the Committee on any Clean Power Alliance-related matters not on today’s agenda. Public comments on matters on today’s Consent Agenda and Regular Agenda Agenda Page 1
shall be heard at the time the matter is called. Comments on items on the Consent Agenda are consolidated into one public comment period. Members of the public who wish to address the Committee at CPA’s Office are requested to complete a comment card and provide it to staff. If you are attending from a remote location, please identify yourself to a CPA representative when your item is called. Each speaker is limited to two (2) minutes (in whole-minute increments) per agenda item with a cumulative total of five 5 minutes to be allocated between the General Public Comment, the entire Consent Agenda, or individual items in the Regular Agenda. Please refer to Policy No. 8 – Public Comment for additional information.
NAVIGATING OUR AGENDA PACKETS
The meeting agenda packets are bookmarked PDFs, which display a list of agenda items to the left of the page and allow you to click to view specific items within the packet. If viewing in your browser, click the "document outline" button in the upper left corner of the screen. If the PDF is downloaded, the bookmark panel (ribbon icon) appears on the left side of the screen.
ACCESSIBILITY: Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least two (2) working days before the meeting at [email protected] or (213) 713- 5995. Notification in advance of the meeting, while not required, will enable us to make reasonable arrangements to ensure accessibility to this meeting and the materials related to it.
CALL TO ORDER AND ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from January 18, 2024, Executive Committee Meeting
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
3. Review Draft Agenda for the March 7, 2024, Board of Directors Meeting
4. Receive Presentation on Renewable Energy Supply and CPA Product Content:
2024-2027
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT REGULAR MEETING ON MARCH 21, 2024
Public Records: Public records that relate to any item on the open session agenda for a Committee Meeting are available for public inspection. Those records that are distributed less than 72 hours prior to the meeting are available for public inspection at the same time they are distributed to all, or a majority of, the members of the Committee. Public records are available for inspection at CPA’s Office at 801 S. Grand Ave., Suite 400, Los Angeles, CA 90017, or online at www.cleanpoweralliance.org/agendas.
Agenda Page 2
Staff Report – Agenda Item 1
To: Executive Committee
Subject: Approve Minutes from the January 18, 2024 Executive Committee Meeting
Date: February 15, 2024
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
Executive Committee Item 1
MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, January 18, 2024
1:30 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
CPA Office
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Capitol Hilton
Business Center
1001 16th Street NW Washington, D.C.
20036
Camarillo City Hall
Office of the Mayor
601 Carmen Drive
Camarillo, CA 93010
Ventura County Government Center
Channel Islands Conference Room, 4th Fl
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Ojai City Hall
Conference Room
401 S Ventura St.
Ojai, CA 93023
Sierra Madre City Hall Council Chambers
232 W. Sierra Madre Blvd.
Sierra Madre, CA 91024
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
CALL TO ORDER & ROLL CALL
Chair Gold called the meeting to order at 1:30 p.m. and Gabriela Monzon, Clerk of the Board, conducted roll call.
Roll Call
Agoura Hills Deborah Klein Lopez Committee Member Remote Beverly Hills Julian Gold Chair Remote
Camarillo Susan Santangelo Committee Member Remote
Carson Cedric Hicks Committee Member Remote
Agenda Page 4
Executive Committee Item 1
Hawthorne Alex Monteiro Committee Member Present
Los Angeles County Lindsey Horvath Vice Chair Remote
Ojai Betsy Stix Committee Member Remote
Sierra Madre Robert Parkhurst Committee Member Remote
South Pasadena Diana Mahmud Immediate Past Chair Absent Ventura County Vianey Lopez Vice Chair Absent
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from November 16, 2023, Executive Committee Meeting Motion: Committee Member Parkhurst, Sierra Madre
Second: Committee Member Santangelo, Camarillo
Vote: The consent agenda was approved by a roll call vote.
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
Ted Bardacke, CEO, provided an update on the enrollment of new customers in Hermosa Beach, Monrovia, and Santa Paula. Customers will be enrolled in March at the cities’ preferred energy option of 100% Green; opt-outs through the first three weeks, after the first notifications, are one and a quarter percent across all cities. Mr. Bardacke noted that more customers are looking at options within CPA, instead of completely opting out. Additional new customer enrollment notices will go out in February, April, and May. Ahead of the joint California Community Choice Association (“CalCCA”) / CPA Lobby Day, Mr. Bardacke and other community choice CEOs will conduct an energy system seminar in Sacramento to educate legislative staff. State Assemblymember, Blanca Pacheco, will sponsor a bill to allow non-elected alternates to substitute for elected officials in closed session, and State Senator, Anthony Portantino, will co-sponsor. Mr. Bardacke thanked Chair Julian Gold, CPA staff Gina Goodhill, and CPA’s lobbyists for their outreach work on this bill.
Committee Members Klein Lopez and Parkhurst asked about ongoing education for CPA Board members relating to legislative activity. Mr. Bardacke stated that he and Ms. Goodhill will prepare CPA Board members ahead of Lobby Day. In response to Vice Chair Horvath’s question about the focus of Lobby Day, Mr.
Bardacke responded that the primary goal is to build relationships with state government officials in partnership with CalCCA representatives. He added that the CalCCA annual meeting is scheduled for April 16-18 in San Jose.
3. Receive Presentation on 2024 Board Outlook – Major Items Mr. Bardacke reviewed upcoming Board items relating to governance & policy, energy procurement, finance/budget/rates, and customer & community programs.
Agenda Page 5
Executive Committee Item 1
In response to Committee Member Hicks’ question about education for new Board members, Mr. Bardacke described the orientation process and agreed to look at other education opportunities. Chair Gold suggested a mentorship program.
Responding to Committee Member Parkhurst’s inquiry about the Board retreat agenda, Mr. Bardacke said staff will work with ExCom on crafting the agenda; initial ideas include discussions about future expansion and workforce development.
4. Review Draft Agenda for the February 1, 2024, Board of Directors Meeting Mr. Bardacke reviewed the consent agenda, including an energy modeling software contract and a Demand Response contract amendment. Based on Executive Committee feedback, the consent agenda will also include an investment proposal in the California Asset Management Program (CAMP). The regular agenda will include power purchase agreements, two for energy storage projects to enhance reliability and the Power Ready PPA; a presentation on marketing and look-ahead; and the opening of the nomination period for Board Chair elections.
5. Recommend to the Board of Directors to Authorize Staff to i) Deposit CPA Funds Into the California Asset Management Program as an Investor ii) Amend CPA’s Investment Policy to Permit Investment in CAMP and iii) Execute the CAMP Investor Agreement and any Other Required Documents
Chief Financial Officer, David McNeil, presented the item. The Finance Committee recommended that the Board authorize staff to deposit CPA funds into CAMP, which is a well-established investment vehicle used by approximately 180 California agencies to invest short-term funds. Currently CAMP pays 2% more in returns than savings accounts or the Local Agency Investment Fund (LAIF). Staff recommends investing in CAMP as an investor rather than a participant, which requires joining the CAMP JPA. Being a participant comes with voting rights but also administrative responsibilities. As an investor, CPA has the same investment options and returns, as well as the ability to withdraw its funds from CAMP on a same-day basis, without penalty. Finance Committee Chair Santangelo reiterated the Committee’s support for investing in CAMP.
In response to Committee Member Klein Lopez’s questions about why CAMP is not better known to government agencies and the diversification of funds once CPA participates in CAMP, staff explained that CAMP has lately offered higher returns than LAIF; in addition to CAMP, CPA also invests in CDs and other smaller savings accounts. Responding to Committee Members Parkhurst and Hicks question about CAMP benefits and liquidity, Mr. McNeil clarified that CAMP does offer same-day liquidity that other investments that CD’s don’t. In response to questions from Committee Member Parkhurst and Vice Chair Horvath, staff clarified CAMP was founded in 1989 and two CCAs, Peninsula Clean Energy and Silicon Valley Clean Energy, currently invest in CAMP.
Motion: Vice Chair Horvath, Los Angeles County
Second: Committee Member Hicks, Carson
Vote: Item 5 was approved by a roll call vote.
Agenda Page 6
Executive Committee Item 1
COMMITTEE MEMBER COMMENTS
Chair Gold announced that there is a possibility that he may be appointed to the Executive Committee as a member of the public after leaving elected office at the City of Beverly Hills.
ADJOURN
Chair Gold adjourned the meeting at 2:23 p.m.
Agenda Page 7
Staff Report – Agenda Item 2
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Oral Update from the CEO on CPA Operations
Date: February 15, 2024
The CEO will provide an oral update on CPA operations.
Agenda Page 8
Staff Report – Agenda Item 3
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Review Draft Agenda for the March 7, 2024 Board of Directors Meeting
Date: February 15, 2024
Staff will provide an overview of the proposed agenda items for the March 7, 2024 Board of Directors meeting for review and feedback from the Executive Committee. The draft Board agenda is attached to this staff report. Information on the main items for Board consideration is provided below.
CONSENT AGENDA
The following items are recommended for inclusion on the Consent Agenda of the March Board meeting.
Credit Agreement Amendment
Staff will present an amended Credit Agreement with JPMorgan to the Board for approval at its March 7th meeting. The amended Credit Agreement would extend the maturity date of CPA’s existing $160 million line of credit with JPMorgan from March 31, 2024 to March 31, 2026, reduce various fees and borrowing costs, and provide CPA with the option of reducing the size of the credit facility and related fees at its discretion. CPA engaged in a competitive solicitation process for a credit agreement in the fall of 2023 and received offers from Royal Bank of Canada (RBC) and JPMorgan. The Finance Committee recommended approval of the proposed terms of an amended Credit Agreement with JPMorgan at its January 11 meeting.
Agenda Page 9
Executive Committee Item 3
Long-Term Power Purchase Agreement Amendment
Staff is in the process of negotiating an amendment to a long-term Power Purchase Agreement to clarify certain contract provisions related to contract settlements. Should the negotiation be successful, the amendment may be presented to the Board for consideration.
Board Reimbursement Policy Amendment
In May 2018, the Board of Directors adopted the Board Directors Expenses Reimbursement Policy (“Policy”) in order to have a fair and consistent policy for Board members to be reimbursed expenses incurred to support CPA’s mission. In adopting this Policy, the Board anticipated that the Policy would be updated once CPA had launched the principal phases of enrolling its customers and had achieved greater financial stability.
Staff will be proposing amendments to the Policy that are intended to resolve an internal ambiguity on reimbursement of travel expenses when a Director is attending an event, meeting, or proceeding on behalf of CPA, not just when the Director is a speaker at the event or proceeding. Staff will also propose a ‘clean up’ of other items in the Policy, including, for example, changing “Executive Director” to “Chief Executive Officer (CEO).” A copy of the proposed amended policy is attached.
CEC Load Management Standards Compliance
The California Energy Commission (CEC) revised its Load Management Standards (LMS) in 2023, with the intention to increase the adoption of marginal cost-based rates to reduce or shift electricity consumption to align with grid reliability and carbon emission market signals. Marginal cost-based rates are rates that automatically vary on a daily-and hourly-basis to reflect the actual cost of energy in the California Independent System Operator (CAISO) market. The revised LMS requires large community choice aggregators like CPA, as well as investor-owned utilities and the two largest publicly owned utilities, to submit a Board-approved LMS compliance plan to the CEC by April 1, 2024.
Agenda Page 10
Executive Committee Item 3
CPA’s compliance plan will explain that CPA’s existing Power Response demand response program, which uses market signals to instruct enrolled customers to reduce their energy consumption during high-demand events, satisfies the LMS requirements.
The plan also points to customer programs CPA is considering that would encourage load shifting. Additionally, the plan will indicate that CPA is considering implementing a real-time dynamic pricing rate program that would further advance the goals identified by the CEC Load Management Standards.
REGULAR AGENDA
The following items are recommended for inclusion on the Regular Agenda of the March Board meeting.
Election of Board Chair
At the February 1st Board of Directors meeting, Chair Gold opened the nomination period for the Board Chair position to serve both the remaining three months of Chair Gold’s two-year term and a full two-year term from July 2024 - June 2026. Nominations will be accepted through Friday, February 16th. The following nomination was received at the meeting:
1. Deborah Klein Lopez, Agoura Hills
As of February 9th, no other nominations have been received. The Clerk of the Board will verify that the nominee(s) meets the eligibility criteria set forth in CPA’s bylaws. The election will take place at the March 7 Board meeting and election procedures will be determined by the number of nominees.
CPA will then complete the composition of Board leadership according to the following schedule:
March 7 Election of Board Chair
By March 22 Board Chair appoints Committee Chairs for the 2024-2026 term Agenda Page 11
Executive Committee Item 3
April 1 New Board Chair begins to serve the remaining 3 months of the 2022-2024 term
By April 4 Committee Chair appointments for the 2024-2026 term announced
April 4 – April 19 At-Large Executive Committee Nomination Period (3 positions: 2 for Los Angeles County and 1 for Ventura County) for the 2024- 2026 term
May 2 Election of At-Large Executive Committee Members for the 2024-2026 term (Los Angeles County Regular Directors vote for Los Angeles County At-Large Positions; Ventura County Regular Directors vote for Ventura County At-Large Positions)
June 21 Board Retreat and New Leadership Reception
July 1 Board Chair, Committee Chairs, Executive Committee At-Large Members begin the 2024-2026 term
Energized Communities Contracts and Program Launch
In 2023, staff engaged the Board, Community Advisory Committee, and City Managers and other City staff to design the Energized Communities program (formerly referred to as the Local Government Program). The program includes two components: the Pathways to Electrification component offering that has three standard offerings worth $250,000 for technical and financial assistance to each of CPA’s member agencies and a competitive Innovation Grant which will support creative sustainability projects in CPA’s service territory. Member agencies will be asked to select one of the three standard offerings in the Pathways to Electrification option on a rolling basis; applications for the Innovation Grant will open later this year.
Staff is finalizing negotiations for two professional services agreements that will support the building and fleet electrification elements of the Energized Communities program.
Should the negotiations be successful, one or both of the agreements will be presented for consideration at the March Board meeting, along with an overview of the program in general. A third contract for community EV charging services is planned for Board consideration later this year, following stakeholder engagement with CPA’s member agencies to determine potential project sites.
Agenda Page 12
Executive Committee Item 3
Power Purchase Agreement
Staff is negotiating a long-term Resource Adequacy-Only contract from the 2023 Clean Energy and Reliability RFO, which the Energy Committee shortlisted and authorized staff to negotiate. Should the negotiation be successful, staff will present the contract for consideration at the March Board meeting.
Briefing and/or Action on Policy Position Regarding Proposed Income-Graduated Fixed Charge
A bill to repeal the legislative direction given in 2022 to the California Public Utilities Commission (CPUC) to develop an income-based fixed charge to electricity bills has been introduced by Asm. Jacqui Irwin. While this type of charge will not directly impact CPA’s rate competitiveness or other business interests, it is a high profile – and vexing – issue within the electricity sector that CPA is being asked to take a position on by many stakeholders. Following CPA’s upcoming lobby day and the February Legislative/Regulatory Committee meeting, staff proposes to provide the Board with an overview of the issue and, potentially, a proposed position recommended by the Legislative/Regulatory Committee.
ATTACHMENTS
1. Draft March 7, 2024 Board of Directors Agenda
2. Board Reimbursement Policy (Redline)
Agenda Page 13
Executive Committee Item 3
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, March 7, 2024
2:00 p.m.
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9: 1
CONSENT AGENDA
2. Approve Minutes from February 1, 2024, Board of Directors Meeting
3. Adopt Resolution to Amend the Credit Agreement with JP Morgan Chase Bank
4. Approve an Amendment to a Long-Term Power Purchase Agreement
5. Adopt Resolution Approving Amendment to the Board Reimbursement Policy No. 2018- 05 6. Approve CEC Load Management Standards Compliance Plan
7. Receive and File Bill Positions March 2024 Monthly Report
8. Receive and File Quarterly Financial Report
9. Receive and File Quarterly Risk Management Team Report
10. Receive and File Monthly Community Advisory Committee Report
REGULAR AGENDA
Election Item
11. Elect a Board Chair to Serve the Remaining Three Months of the 2022-2024 Term and the Entirety of the July 2024 – June 2026 Term
Action Items
12. Authorize the Chief Executive Officer to Executive Two Professional Services Agreements for the Energized Communities Program and Receive Presentation on the Program Launch
13. Approve a Power Purchase Agreement
14. Policy Position on Income-Graduated Fixed Charge (Action or Information TBD)
COMMITTEE CHAIR UPDATES
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT MEETING ON APRIL 4, 2024
Agenda Page 14
Policy Title CPA Reimbursements for Board of Directors
Policy Number 2018-05 Effective Date:
Amended:
05/02/2018
03/xx/2024
I. PURPOSE
To establish the standard procedures relative to expenses incurred by members of the Clean Power Alliance (CPA) Board of Directors in the performance of their duties. In general, costs are associated with: A) attendance at Board and Committee meetings and at CPA-sponsored community events, and B) representing CPA at conferences, legislative and regulatory proceedings, and related meetings.
II. REIMBURSABLE EXPENSES
A. BOARD AND COMMITTEE MEETINGS AND COMMUNITY EVENTS
i. TRAVEL
The primary costs incurred related to participation in Board and Committee meetings and CPA-sponsored community events are associated with travel, mileage or transit expenses, and parking. Consistent with other government bodies, each of these costs will be reimbursed upon request and at cost. For mileage, CPA will reimburse these costs atpersonal vehicle mileage based on the IRS’s latest standard U.S. General Services Administration (GSA) rate, which is currently set atmileage rates. Receipts for parking are required for reimbursement. Receipts are not required for the use of public mass transit as receipts are generally not available for such travel.
$0.545 per mile and is adjusted annually. Receipts for parking are required for reimbursement, but not for the use of transit as receipts are generally not available for such travel.
D.B. CONFERENCES, LEGISLATIVE & REGULATORY PROCEEDINGS, AND
RELATED MEETINGS
From time to time, Directors, who are representing CPA, may travel (i) outside of Southern California to represent the Clean Power Alliance at a conference, (ii) to a legislative or regulatory proceeding, or (iii) to a meeting for educational, training, or CPA related program or policy purposes (e.g., at events hosted by the California Community Choice Association, etc.) (“CPA Travel”). In the event of such CPA Travel, the following shall apply:
Agenda Page 15
i. TRAVEL & REGISTRATION
From time to time, Directors may travel outside of Southern California to represent the Clean Power Alliance at a conference, at a legislative or regulatory proceeding, or at a meeting (e.g., at the California Community Choice Association, etc.). All such travelCPA Travel must first be approved by the Chair of the Board in consultation with the Chief Executive Director.Officer (CEO). The cost of travel to conferences, including conference registration costs, will be reimbursed if the Director is a speaker on behalf of CPA. However, ifIf a Director is attendingat a conference simply as an attendee of the conference, such costs will notmay be reimbursed. at the discretion of the Chair of the Board in consultation with the CEO. In general, Directors are expected to keep such travel costs to a minimum by booking coacheconomy class airfare or train fare well in advance and avoiding overnight stays whenever possible. Receipts for travel and registration are required for reimbursement, except when using public mass transit. ii. ACCOMMODATIONS, MEALS, & INCIDENTALS
The expenses for accommodation, meals, or incidentals will be reimbursed if the Director is a speaker on behalf of CPA. If a Director is attending a conference as an attendee of the conference, such costs for accommodation, meals, or incidentals may be reimbursed if such CPA Travel was approved pursuant to Section II.B.i.
Consistent with the majority of government agencies, per diem costs for accommodations, meals, and incidentals will be reimbursed at U.S. General Services Administration GSA rates, which are city -specific, vary by travel season, and are adjusted annually. Higher rates than those provided by GSA are permissible for accommodationsaccommodation when attending a conference and staying at the conference hotel. Further, the Chair may approve a higher reimbursement amountsamount on a case -by -case basis, as may be requested in advance.
Receipts for accommodations and meals are required for reimbursement.
IV. AUTHORIZATIONS FOR APPROVALS
. BOARD AND COMMITTEE MEETINGS AND COMMUNITY EVENTS
Expenses incurred (e.g. travel and parking) by Directors due to standard attendance at Board and Committee Meetings and Community Events for the purposes of performing duties related to Clean Power Alliance do not require authorization. . CONFERENCES, LEGISLATIVE & REGULATORY PROCEEDINGS, AND RELATED MEETINGS Expenses incurred (e.g. travel, accommodations, and incidentals) by Directors due to participation to represent Clean Power Alliance at a conference, at a legislative or Agenda Page 16
regulatory proceeding, or at a meeting outside of Southern California (e.g., at the California Community Choice Association, etc.), must first be approved by the Chair of the Board in consultation with the Executive Director.
The Chair must also approve, on a case by case basis, reimbursement amounts higher than the U.S. General Services Administration amount described herein, which may be requested by Directors in advance.
XIII.III.REIMBURSEMENT PROCEDURES
All claims for reimbursement shall be prepared on a CPA Expense Claim Form, which may be updated from time to time and shall be submitted no longer than 30 days after the event.
All claims for reimbursement shall include an itemization of expenses, provide a brief explanation of the purpose of the event, and shall include original receipts or vouchers for all expenses incurred with the exception of advances. If a receipt cannot be obtained or has been lost, a written justification shall be made on the expense form and the reason given. In the absence of an explanation satisfactory to the applicable approving authority, the amount involved shall not be allowed.
All claims for reimbursement shall be submitted to CPA staff the CEO or the CEO’s designee for approval.
XVI.IV. VII. ATTACHMENTS:
1. A sample Expense Claim Form
Agenda Page 17
Agenda Page 18
Staff Report – Agenda Item 4
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Receive Presentation on Renewable Energy Supply and CPA Product Content: 2024-2027
Date: February 15, 2024
Staff will provide a presentation on the item.
ATTACHMENT
1. Presentation on Renewable Energy Supply and CPA Product Content Agenda Page 19
Item 4: Renewable Energy Supply and
CPA Product Content: 2024-2027
February 15, 2024
Agenda Page 20
Summary
Each year as part of the annual rate setting process, CPA reviews the renewable energy content of its three rate products, which have fluctuated in response to the state of CPA’s finances, market conditions, and changes in the composition of CPA’s load Shifts in the short-term renewable energy market is putting pressure on CPA’s ability to meet Renewable Energy (RE) customer demand in 2025 and 2026 at current product content levels
Short term RE procurement efforts are intense and ongoing; however supply constraints and the risk of CPA project delay or failure mean that administrative measures and changes to product content for 2025 and 2026 will need to be implemented Changing the 100% Green product would bring a host of unacceptable risks to CPA; the Lean and Clean products are the most viable for temporary adjustment in 2025 and 2026 CPA will still maintain a strong leadership position on RE and GHG-free energy supply even with temporary adjustments
Rate spreads between 100% Green and Lean/Clean will likely widen for FY 24/25; an initial set of rate options will be presented to ExCom in March 2 Agenda Page 21
CPA Leadership and Market Shift
68% of CPA’s load is now on the 100% Green product, essentially “locking-in” a significant amount of customer demand for Renewable Energy (RE); CPA’s overall energy portfolio in 2023 and 2024 is expected to contain 75%-80% RE
Fundamental shifts in the short-term renewable energy market are putting pressure on CPA’s ability to meet this RE customer demand in 2025 and 2026. These shifts in the short-term market include:
• Following California’s lead, Western states have adopted their own RE mandates. This has curtailed out-of-state RE supply available to CPA
• Following CPA’s lead, several other CCAs have moved customers onto 100% RE rate products. This has increased competition for short-term RE supply within California • Covid and interconnection-related project delays have forced many LSEs to rely more heavily on the short-term market while awaiting new projects to come online • IOUs have cut back procurement of new renewable resources over the past several years and now are curtailing short-term sales of RE as they face state compliance deadlines 3 Agenda Page 22
Current Positions 2024 – 2027
Positions assume 2024-2027 product content remains at 2023 target levels • Lean = 40% GHG free with a minimum of 20% RE
• Clean = 50% GHG-free all from RE sources
• 100% Green = 100% RE
Positions assume that most but not all CPA projects under development/in construction come on-line on time The long position in 2024 can be used to mitigate higher than expected load, lower than expected RE production, or be sold/swapped. The reduced short position in 2027 anticipates the SunZia wind project and other projects meeting their planned online dates
No other new projects currently in negotiation will come on-line before 2027 Two factors drive the need for early decision making about the short positions
1. FY 2024/2025 revenue requirements and rate setting
2. 2024 Integrated Resources Plan (IRP) development requires accurate baselining 4 Annual Position 2024 2025 2026 2027
Long/Short
Each
represents the
annual RE
production of a
mid-size solar
project
Agenda Page 23
CPA is significantly increasing its
procurement of long-term resources to meet
customer commitments, mitigate its
exposure to price and supply risk in the
short-term markets, and accommodate load
growth from increased transportation and
building electrification
New projects coming online in 2027 and
beyond help alleviate some of the short-term
supply crunch, much as the focus in 2021-
2023 on long-term battery procurement
helped us turn the corner on RA supply
It is not clear how much more short-term
RE supply can be procured even at these
elevated prices – trading volume for 2025
and 2026 remains very low even as prices
have spiked
5 1. Prices are CPUC benchmarks for 2021 and 2022 and broker quotes for 2023 forward Current Strategy and Market Conditions
5x increase over 2-year period
Agenda Page 24
Strategies to Close the RE Supply Gap
Typical and novel short-term RE procurement strategies are being pursued to fill the gaps • RFOs every 6-8 weeks and active in seeking out bilateral RE deals • Swapping RE length in 2024 for supply in 2025 and/or 2026 – this approach has proven fruitful so far • Outreach to project owners who have long term IOU contracts expiring in 2024 to take over those projects The 25/26 gaps will be difficult to close solely through procuring additional supply and even if it could be procured, it would be at extreme prices. RE demand reduction needs to be explored Staff believes that the composition of the 100% Green product should not be altered. It is core to the CPA brand and customer value proposition, is the preferred energy option of 25 of our 35 members, and is used by many commercial/government entities to meet their own mandates The most viable options are to reduce the RE content of the Lean and Clean rate products in favor of GHG-free energy (i.e. large hydroelectric) and pursue other administrative measures A key challenge when altering the energy mix of the Lean and Clean products is maintaining low levels of GHG emissions in these products given that hydroelectric supply is uncertain in 25/26 6 Agenda Page 25
Renewable Energy Demand Reduction Options:
Defaults and Expansion
OPTION RE Reduction
2025
(GWh)
RE Reduction
2026
(GWh)
Notes
Suspend expansion efforts until
2025 for 2027 service start date
NA NA Recommended
Also avoids expansion votes in
election year.
Do not allow new 2025 Cities to
Default to 100% Green
Negligible Wait to see market evolution and
intel on city preference
(Savings is between Clean and 100%
Green)
Delay LA County CARE 100%
Green Default Change to
January 2027
Recommended
Significant cost avoidance in addition
to demand reduction. Developing
proposal for alternative benefit for
CARE customers.
Each represents the annual RE production of a mid-size solar project Agenda Page 26
Renewable Energy Demand Reduction Options:
Lean and Clean Product Content
OPTION Annual RE Demand
Reduction 2025/2026
(GWh)
Notes
1. Set 2025-2026 Lean and Clean
Product Content at 2023 Levels
0 Lean = 40% GHG-free (20% RE minimum)
Clean = 50% Renewable
Highly unlikely to be able to source enough RE to
meet these targets
2. Set 2025-2026 Lean and Clean
Product Content at 2021/2022 Levels
Lean = 40% GHG-free (no RE)
Clean = 50% GHG-free (40% RE)
Difficult to achieve, especially 2026
3. Further reduce 2025-2026 Clean
RE Product Content while
maintaining low GHG levels
Lean = 40% GHG-free (no RE)
Clean = 50% GHG-free (25% RE)
Good opportunity to meet subsequent RE targets
unless significant failure or delay of projects under
development
4. Lean and Clean Product Content
dominated by carbon-free energy
(large hydro) not renewables
Lean = 40% GHG-free (no RE)
Clean = 50% GHG-free (RE as available)
Likely to meet subsequent RE targets. May not be
enough hydro available to meet GHG targets
Each represents the annual RE production of a mid-size solar project Agenda Page 27
RE Position Options
Options 2 and 4 are high and low bookends
Under each option CPA’s renewable energy content far exceeds that of SCE (see next slide) Option 3 appears most viable, at least for 2025, and is being used a as baseline in prep for the financial analysis needed for to develop rate setting options for ExCom and the Board Other scenarios can be developed based on ExCom feedback 9 Option 2024 2025 2026 2027
1 – Base (Highly unlikely to achieve)
Lean = 40% GHG-free (20% RE minimum); Clean = 50% Renewable 2 - 2021/2022 Product levels (Difficult to achieve, especially for 2026) Lean = 40% GHG-free (no RE); Clean = 50% GHG-free (40% RE) 3 - Further reduce 2025-2026 Clean RE while maintaining low GHG levels (Likely achievable for 2025; Potentially achievable for 2026) Lean = 40% GHG-free (no RE); Clean = 50% GHG-free (25% RE) 4 – GHG based targets for Lean and Clean (Likely achievable for RE procurement – Higher Hydro Risk)
Lean = 40% GHG-free (no RE); Clean = 50% GHG-free (RE as available) Assumes delay in 100% Green Default change for LA County CARE Customers to 2027 and some project delay/failure Agenda Page 28
CPA RE Portfolio Scenarios vs. SCE
Assumes delay in 100% Green Default change for LA County CARE Customers to 2027 32%
36% 35%
31% 31% 33% 35% 37% 39%
42%
44%
59% 60%
47%
52%
76%
81% 81% 81% 83%
77% 77%
74% 74%
70% 70%
20%
30%
40%
50%
60%
70%
80%
90%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
SCE Base Rate Renewable Percentage SCE Base Rate Forecasted Renewable Percentage CPA Portfolio Renewable Percentage 1
2 3
4 CPA’s overall RE content would remain well above SCE’s in each option Option 2
Option 1
Option 3
Option 4
Agenda Page 29
Rate Implications and Next Steps
Staff is in the early stages of analyzing FY24/25 rate options and anticipates continuing to offer rates that are stable and competitive with SCE
Reducing the RE content of Lean/Clean would likely widen the spread between 100% Green and Lean/Clean (currently 5% and 4% respectively) based on cost of service To the extent that there is a generation rate reduction, the reductions to Lean and Clean will be greater than that of 100% Green
Staff plan to present ExCom with initial FY 24/25 rate options at its March 21 meeting based on product content Option 3
CPA staff can also develop additional product content/rate options for March scenarios based on ExCom feedback
11 Agenda Page 30