February 15, 2024
MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, February 15, 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
Beverly Hills City Hall
Council Office, 4th Floor
455 N. Rexford Drive
Beverly Hills, 90210
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
February 15, 2024
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 Remote Ventura County Vianey Lopez Vice Chair Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from January 18, 2024, Executive Committee Meeting Motion: Committee Member Santangelo, Camarillo
Second: Committee Member Parkhurst, Sierra Madre
Vote: The consent agenda was approved by a roll call vote with an abstention from Vice Chair Lopez.
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
Ted Bardacke, Chief Executive Officer, reported on pre-enrollment for the three cities that recently joined CPA; opt-outs are at 4% and opt-downs at 1%, as expected. Enrollment is scheduled in March 2024. Mr. Bardacke also reminded the Committee of the annual CalCCA Conference in April.
3. Review Draft Agenda for the March 7, 2024, Board of Directors Meeting Mr. Bardacke discussed consent items, including: CPA’s credit agreement with JP Morgan; long-term power purchase contract amendment; a proposed amendment to the board reimbursement policy; and the revised CEC Load Management Standards Plan.
Regarding the last item, Committee Member Mahmud inquired about the feasibility of complying with a regulation that would require CPA to modify rates on an hourly basis, and if other load serving entities (LSEs) will be able to comply. Staff believe it’s not feasible and that CPA’s demand response program may achieve similar goals. Staff noted that other CCAs have expressed doubt about meeting the timeline and the specific parameters put forward by the CEC. CPA will likely submit its plan every two years, and feasibility may improve as the system matures.
Committee Member Parkhurst asked about the penalty for non-compliance and challenges to meeting the hourly measurements. Matt Langer, Chief Operating Officer, noted that CPA should be able to set a rate based on the hourly CAISO prices, which requires calculating how much of CPA’s rate is correlated to the
February 15, 2024
actual hourly price, as CPA’s fixed costs and hedged costs are part of it. CalCCA and other LSEs have identified a number of technical issues as well. Regarding penalties, Mr. Langer stated there would not be penalties if CPA can demonstrate other programs operate off a dynamic market signal, such as the Power Response program. Committee Member Mahmud expressed concern about the potential lack of customer transparency under this model. In response to Vice Chair Horvath’s inquiry about TOU rates and customer bills, Mr. Langer noted CPA’s customers are on TOU rates reflecting a peak period from 4 p.m. to 9 p.m. The CEC proposal goes a step further to vary hourly rates, with the price unknown until you get to that hour of the market. The goal of the proposal is to provide customers an option to use more power when it’s affordable; TOU rates would remain an option.
Responding to Chair Gold’s comments about data and artificial intelligence (AI), staff explained that CPA will be exploring this and that difficult-to-predict human behavior will significantly impact performance.
Mr. Bardacke presented on the regular agenda items, including election of a new Board Chair and an item on the Energized Communities program. Committee Member Mahmud asked for status of the City of Berkeley’s case; staff responded cities who want to adopt all-electric ordinances will have explore different compliance methods; the building electrification portion of the Energized Communities program is not impacted by the decision. Mr. Bardacke also discussed a Resource Adequacy (RA) contract that will help CPA address RA compliance. Mr. Bardacke noted that the presentation will include background information in green hydrogen. Lastly, Mr. Bardacke mentioned that staff will also review the income-graduated fixed charge.
4. Receive Presentation on Renewable Energy Supply and CPA Product Content:
2024-2027
Mr. Bardacke presented the item. Each year as part of the annual rate setting process, CPA reviews the renewable energy content of its rate products, which fluctuate in response to the state of CPA’s finances, market conditions, and changes in the composition of CPA’s load. Mr. Bardacke reviewed various renewable energy portfolio scenarios and noted that RE supply constraints and project delays mean that some administrative measures and changes to product content will need to be made in 2025 and 2026. Staff suggest making changes to the Lean and Clean products and leaving the 100% Green unaltered to prevent significant risk to CPA. Mr. Bardacke reviewed long and short positions from 2024 to 2027; several big projects are under construction currently, with new supply coming online in 2027. Other administrative measures include suspension of expansion for a year, prevent new cities from defaulting to 100% Green, and/or delaying the Los Angeles County CARE 100% Green default change until January 2027. This last strategy would free up funding for development of alternative benefits for CARE customers; staff is collaborating with Vice Chair Horvath and her staff on the matter. Mr. Bardacke also discussed the renewable energy demand reduction options for the Lean and Clean product content.
Committee Member Klein Lopez expressed concern about the strategy to prevent new cities to default to 100% Green, due to the difficulty in transitioning a city from Lean or Clean rates; suggested that if the effects are negligible, new cities should
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be able to choose 100% Green. Committee Member Mahmud echoed those comments, noting that SCE does not offer a 100% renewable energy product. Vice Chair Horvath expressed reservation about changes to CARE customers, but considering CPA’s overall goals, it might be necessary; additionally, she noted her collaboration with Supervisor Solis on cooling and temperature control efforts, which could use funding from CPA’s proposed alternative benefits for CARE customers. In response to Committee Member Parkhurst’s question, Mr. Bardacke explained that CPA will not bring on more solar projects, other than those already contracted in 2025 and 2026.
Mr. Bardacke completed his presentation with rate implications and next steps.
Staff is analyzing fiscal year 2024-25 rate options, which will be competitive with SCE and presented to the Executive Committee in March. Reducing the RE content of Lean and Clean would likely widen the spread between 100% Green and Lean and Clean (currently 5% and 4% respectively) based on cost of service.
Chair Gold commented that CPA’s Green product remains intact, 70% of the portfolio. Flexibility in the modeling is needed so that CPA can be nimble in response to market conditions. Vice Chair Horvath thanked staff for the extra time to consider the issues presented; asked if there is potential for collaboration with SCE to secure first right-of-refusal for renewables. Mr. Langer noted that CPA monitors expiring IOU contracts for that purpose. Vice Chair Horvath noted support for staff’s suggestion to formulate rate options based on Option 3, further reduce clean RE product content for Lean and Clean, adding that CPA’s most valuable rate product is what has attracted member agencies to join CPA and proposed adjustments will result in less of an impact overall while honoring customers’ commitment to clean energy and placing CPA at the forefront of clean energy nationwide.
COMMITTEE MEMBER COMMENTS
Committee Member Mahmud requested an update at the next meeting relating to the SunZia project environmental challenge.
ADJOURN
Chair Gold adjourned the meeting at 2:55 p.m.