Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, March 21, 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
Hilton San Francisco Union Square
333 O’Farrell St.
San Francisco, CA 94102
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 shall be heard at the time the matter is called. Comments on items on the Consent Agenda are Agenda Page 1
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 February 15, 2024, Executive Committee Meeting
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
3. Review Draft Agenda for the April 4, 2024, Board of Directors Meeting
4. Receive Presentation on FY 2024-25 Rates Outlook
CLOSED SESSION
5. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: 2
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT REGULAR MEETING ON APRIL 18, 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 February 15, 2024 Executive Committee Meeting
Date: March 21, 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, 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
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 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 actual hourly price, as CPA’s fixed costs and hedged costs are part of it. CalCCA Agenda Page 5
Executive Committee Item 1
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 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 Agenda Page 6
Executive Committee Item 1
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.
Agenda Page 7
Staff Report – Agenda Item 2
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Oral Update from the Chief Executive Officer on CPA Operations Date: March 21, 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 April 4, 2024 Board of Directors Meeting
Date: March 21, 2024
Staff will provide an overview of the proposed agenda items for the April 4, 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 April Board meeting.
Community Advisory Committee Appointment – West Ventura Staff recommends appointing two new CAC members to fill the open seats in the West/Unincorporated Ventura County region (Ojai, Oxnard, Unincorporated Ventura County, and City of Ventura), which were recently vacated. The list of current CAC members are included in Attachment 2. CPA has received four applications for the two vacant West/Unincorporated Ventura County seats. Those applications are provided in Attachment 3. Staff is consulting with Board members from the represented jurisdictions to assist in selecting two candidates to move forward for full Board consideration at the April Board meeting.
Agenda Page 9
Executive Committee Item 3
Professional Services Agreement with Langan for Software Development Services Related to ETRM
Over the past three years, CPA has been building an Energy Trading and Risk Management (“ETRM”) system that houses CPA’s energy contract data and is used for critical functionality, including position management, financial modeling, payment validation, and other procurement and financial support functions. In October 2022, CPA released an RFP for Software Development and Information Technology Services to provide support services for ongoing work in building this ETRM system. As a result of the RFP, CPA selected Langan Engineering and Environmental Services (“Langan”) and entered into a Professional Services Agreement with Langan at a Not-To-Exceed (NTE) amount of $35,000 for two of the four tasks solicited in the RFP. In May 2023, the Board approved an amendment to the Professional Services Agreement with Langan with a Total Not-To-Exceed Amount of $205,000 and Langan moved forward with the remaining two tasks and completed the scope solicited in the RFP.
CPA now needs to enhance the ETRM system and seeks to enter into a new Professional Services Agreement with Langan at a Not-To-Exceed (NTE) amount of $280,000. The contract proposed to the Board will include tasks such as additional system feature enhancements, system performance and security enhancements, report building, and ongoing technical support. As this agreement is a Specialized Service and Langan’s experience and support services is, in part, based on the prior RFP, staff did not run a new solicitation.
Arlington Contract Amendment
Staff is in the process of negotiating an amendment to its long-term Power Purchase Agreement with the Arlington solar + storage project to clarify certain contract provisions related to contract settlements. Should the negotiation be successful, the amendment may be presented to the Board for consideration.
Wilmington 1 COD Contract Amendment
Staff is in the process of negotiating an amendment to its long-term Power Purchase Agreement with the Wilmington 1 project, a local rooftop solar facility under development, Agenda Page 10
Executive Committee Item 3
that extends the period that the Seller can pay liquidated damages prior to achieving commercial operation. Should the negotiation be successful, the amendment may be presented to the Board for consideration.
CalCCA Special Assessment for Southern California Edison (SCE) Resource Recovery Account (ERRA) Applications
SCE is expected to file two applications in the coming months before the California Public Utilities Commission (CPUC) – (i) the 2025 ERRA forecast application and (ii) the 2023 ERRA review application. Both proceedings impact CPA’s competitiveness and overall customer bills. CPA and four other CCAs in SCE territory1 are proposing to enter into joint agreements with Keyes and Fox (“K&F”) and NewGen Strategies & Solutions (“NewGen”) for legal, technical and rate analysis support at a total cost of $245,500 for both ERRA applications.
CPA’s portion of the cost for both proceedings is $79,899 for NewGen, and $76,830 for K&F. K&F provides Legal Services and NewGen’s services are Specialized Services.
Each has expertise and experience in Investor-Owned Utilities (IOU) ratemaking proceedings and CPA has contracted with these firms in the past for similar services.
Because CPA has already executed contracts with both vendors in the past 12 months for other CPA-specific services, the amounts of the additional payments to these vendors that flow through CalCCA exceed the CEO’s signing authority. Therefore, CPA staff will seek the Board’s approval of CalCCA’s special assessment for engagement in these regulatory proceedings.
Bloom Ads Contract Amendment
Staff is recommending an amendment to CPA’s media buying contract increasing the NTE by $100,000 (from $250,000 to $350,000) to increase advertising opportunities for the next phase of CPA’s brand campaign. Staff has determined that the creative assets developed for the initial brand campaign can be used again in this next round, scheduled 1 CalChoice (Lancaster), Central Coast Community Energy, Desert Community Energy, and Orange County Power Authority.
Agenda Page 11
Executive Committee Item 3
for the spring. The funds previously approved for additional creative services with another vendor would be repurposed to paid media budget to help grow visibility in our crowded media market. Advertising funds would be used to pursue TV streaming and targeted social media opportunities. Because the amount being requested in this amendment exceeds the CEO’s signing authority of 10% of original contract value, staff will seek the Board’s approval of the amendment.
REGULAR AGENDA
The following items are recommended for inclusion on the Regular Agenda of the April Board meeting.
Standalone Storage Agreement
Staff is in the process of negotiating several long-term contracts from the 2023 Clean Energy and Reliability RFO from the shortlist approved by the Energy Committee. Should these negotiations be successful, one PPA may be presented for consideration at the April Board meeting.
Rates Outlook and Product Content
This item will be subject to a separate presentation to the Executive Committee.
Nomination Period for Executive Committee At-Large Positions At the April Board meeting, the newly elected Chair will announce the appointment of the Standing Committee Chairs and open the nomination period for At-Large Executive Committee positions for terms which will run from July 2024 through June 2026. The Executive Committee has two at-large positions for Directors representing LA County members and one at-large position for a Director representing Ventura County members.
The eligibility criteria for at-large positions are as follows:
1. The candidates must be Regular Directors;
2. The candidates must have attended at least 50% of CPA’s Regular Meetings in the prior 12 months; and,
3. The candidates must affirm that they intend to serve a full term Agenda Page 12
Executive Committee Item 3
The nomination period will close on April 19, 2024. The election for the at-large positions will occur at the May 2 Board meeting. Regular Directors who are eligible to be nominated are listed in Attachment 4.
ATTACHMENTS
1. Draft April 4, 2024 Board of Directors Agenda
2. List of Current CAC Members and Recommended New Candidates for Appointment
3. CAC Applicant Summaries
4. Current Eligible Regular Directors for Executive Committee At-Large Positions Agenda Page 13
Executive Committee Item 3
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, April 4, 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: 2
CONSENT AGENDA
2. Approve Minutes from February 1, 2024, Board of Directors Meeting
3. Approve Appointment to the Community Advisory Committee
4. Approve Professional Services Agreement with Langan Engineering and Environmental Services
5. Approve CalCCA Special Assessment for SCE ERRA Applications
6. Approve Amendment to Professional Services Agreement with Bloom Ads
7. Approve Amendment to Power Purchase Agreement with Arlington II
8. Approve Amendment to Power Purchase Agreement with Wilmington 1
9. Receive and File Bill Positions March 2024 Monthly Report
10. Receive and File Monthly Community Advisory Committee Report
REGULAR AGENDA
Action Item
11. Approve Power Purchase Agreement for Standalone Storage Information Item
12. FY 2024/2025 Rates Outlook and Product Content
OPEN NOMINATION PERIOD FOR EXECUTIVE COMMITTEE AT-LARGE POSITIONS
COMMITTEE CHAIR UPDATES
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT MEETING ON MAY 2, 2024
Agenda Page 14
CAC APPOINTEES
East Ventura/West LA County
(Agoura Hills, Camarillo, Calabasas, Moorpark,
Simi Valley, Thousand Oaks)
Appointees
• Angus Simmons
• Debbie West
• Jennifer A. Burke (Vice-Chair)
San Gabriel Valley
(Alhambra, Arcadia, Claremont, Sierra Madre, South
Pasadena, Temple City)
Appointees
• Richard Tom
• Vacant
West/Unincorporated Ventura County
(Ojai, Oxnard, Santa Paula, Ventura,
Unincorporated Ventura County)
Appointees
• Vacant
• Vacant
South Bay
(Carson, Hawthorne, Manhattan Beach, Redondo
Beach, Rolling Hills Estates)
Appointees:
• Cort Casady
• Diane Wallace
Gateway Cities
(Downey, Hawaiian Gardens, Paramount,
Whittier)
Appointees
• Genaro Bugarin (Vice-Chair)
• Dr. Irella Perez
Westside
(Beverly Hills, Culver City, Malibu, Santa Monica,
West Hollywood)
Appointees
• Cris Gutierrez
• David Haake
Unincorporated LA County
Appointees
• Neil Fromer (Chair)
• Vacant
Agenda Page 15
2024 Community Advisory Committee New Applicant Summary Candidate: Sofia Magallon Subregion: West/Unincorporated Ventura County Eligible Yes Section 1: Personal Information
A. Home Address: Oxnard, CA
B. Occupation: Policy Advocate
Section 2: Qualifications
A. Experience serving on advisory committees / public commissions / similar bodies:
• I've actively participated in coalition spaces like Central Coast Climate Justice Network (C3JN), focusing on creating a more resilient and just region in the face of climate change, and the Regenerate Coalition, dedicated to transitioning away from fossil fuels statewide. I've demonstrated leadership in collaborating with statewide organizations on environmental policy proposals. Specifically, in these spaces, I've played a key role in strategic planning for campaigns and incorporating various perspectives and priorities from people with diverse backgrounds.
B. Experience with outreach or community leadership:
• In my role as the Environmental Justice Policy Advocate at CAUSE, based in my hometown of Oxnard, CA, I've been on the front lines of the fight for social, economic, and environmental justice for marginalized communities in the Central Coast. By creating presentations, fact sheets, and assisting community members in crafting public comments sharing their lived-experiences, I’ve empowered them to participate in decision-making spaces, informing and influencing local statewide environmental policies and programs. Additionally, during my undergraduate studies at UC Berkeley, I co-led a campaign that increased awareness and accessibility to the Latinx/POC campus community on environmental justice issue areas, such as climate change, sustainability, and Indigenous vs. colonial relationships with land.
C. Experience or expertise in energy field:
• My expertise in the energy field is rooted in my focused studies and interest at UC Berkeley, where I delved into environmental justice, exploring how economic frameworks influence and support policy to affect sustainable and socially equitable outcomes. This helped me understand the connections between environmental and racial/ socio-economic disparities.
In my current role, I analyze, advocate, and lobby for energy policies at multiple levels with an emphasis on pollution mitigation, energy equity, and a just transition away from fossil fuels. I have done work around community solar, offshore wind, pollution mitigation under the CARB Scoping Plan, CPUC proceedings such as the Integrated Resources Plan, demand response programs, etc.
D. Other skills / knowledge / experience to bring to Committee:
• My journey at CAUSE and academic background in Environmental Economics and Policy has been a testament to my passion and dedication to environmental justice and uplifting disadvantaged communities. Working closely with local and statewide grassroots partners and community members in Ventura County, I've formed impactful relationships vital for driving change collaboratively. Importantly, I am a first-generation Latina who understands the difficulty of communities like Oxnard being a part of decision-making spaces, especially given the technical nature of the energy sector, and can use my expertise and lived experience to address these disparities.
Agenda Page 16
Section 3: Additional Information
A. Why you are interested / what you hope to achieve:
• I am eager to serve on the Community Advisory Committee to actively contribute to Clean Power Alliance's mission of a clean energy future that empowers communities. As the Environmental Justice Policy Advocate at CAUSE, I've witnessed the transformative power of community-led initiatives. I aim to bring my expertise in environmental justice to the Committee, gained through managing diverse campaigns. My goal is to advocate for inclusive and sustainable policies that address the unique needs of marginalized communities. I aspire to foster transparent communication between CPA and the community, ensuring that our collective efforts have meaningful impact. By serving on this committee, I aim to bridge the gap between policy development and community needs, promoting a cleaner and more equitable energy future for all.
B. List other languages / ability to support non-English speaking communities:
• Spanish
C. Anything else you would like CPA to know:
• I would like to highlight my strong commitment and enthusiasm for serving on the Clean Power Alliance committee. My background as the Environmental Justice Policy Advocate at CAUSE has equipped me with the necessary skills and passion for advancing environmental justice initiatives through community collaboration. Lucas Zucker, CAUSE Co-Director and former CPA Committee Member, can provide a formal recommendation attesting to my qualifications and dedication. Please feel free to contact Lucas at [email protected] for further insights into my abilities and potential contributions to the committee. I look forward to contributing to the Clean Power Alliance's mission.
Section 4: Commitment
A. I am fully committed to the CAC by supporting the organization's mission and commit to not opting out of CPA. I value consistent attendance and am flexible regarding meeting locations in Ventura and Los Angeles counties. I embrace the two-year term commitment and am open to serving additional terms if approved. My dedication, passion, adaptability, and willingness to learn position me well for effective participation in the Committee's work.
B. Signed to certify electric holder in CPA service territory and meet eligibility requirements? Yes.
Agenda Page 17
2024 Community Advisory Committee New Applicant Summary Candidate: Kent Bullard Subregion: West/Unincorporated Ventura County Eligible Yes Section 1: Personal Information
A. Home Address: Ventura, CA
B. Occupation: Renewable Energy and Quality Consultant
Section 2: Qualifications
A. Experience serving on advisory committees / public commissions / similar bodies:
• From 1997 to 2006, I served on the National Park Service (NPS) Environmental Leadership Council and the Department of the Interiors (DOI) Renewable Energy Working Group. I also developed and managed the NPS Green Energy and Environmental Leadership Web Site.
• I have served on the Ventura County Air Pollution Control District's Clean Air Fund Advisory Committee since 2016, and since 2019, I have served as the chair. • In 2019, I was asked to serve on the working group developing the EV readiness blueprint for Ventura County. In this role, I represented the EV community and how our needs for EV infrastructure could be met. A side part of the project resulted in my developing a database of all known EV charging points in the county and providing updated information to the US DOE Alternative Fuel Data Center (AFDC) and to Plugshare. The database is a continual work in progress and currently lists 1,131 ports countywide. I also contracted with the Ventura County Regional Energy Alliance (2021/22) to provide technical services towards implementing EV education and adoption throughout the county.
• Since 2020, I have served on the US Departments of Commerce, National Institute of Standards, and US National Working Group Subgroup, which has been responsible for the development of the NIST Handbook 44, 3.40 Electric Vehicle Fueling Systems standards.
The California Division of Measurement Standards incorporated these provisions as code as have most other by state bureaus regulating EV charging infrastructure.
B. Experience with outreach or community leadership:
• From 2003 through 2006, I served as the Leader of the Green Team for Habitat for Humanity of Venture. In this capacity, I wrote a comprehensive set of Green Building Guidelines based on Best Management Practices. These guidelines were adopted by several other Habitat for Humanity operations. As Green Team leader, we oversaw the construction of the homes in Oxnard, which incorporated sustainable building materials and energy-efficient appliances, and each unit was provided with photovoltaic systems generating 100% of the residents' needs.
• I am one of the founding members of the EV Advocates of Ventura County, which was formed in 2012 to provide education and outreach to the community about the benefits of Electric Vehicles. Since 2016 I have coordinated 36 events as City Captain for National Drive Electric Week and Earth Day. Additionally, I’ve provided outreach at street fairs, Arbor Day, and community education gatherings.
• Since 2019, I have served as the Transportation Chair of the Santa Barbara / Ventura chapters of the Sierra Club. In this role, I’ve coordinated events, represented the Club at meetings, and provided input to chapter policy and programs.
Agenda Page 18
C. Experience or expertise in energy field:
• I retired as the Maintenance Supervisor for Channel Islands National Park. My 36-year federal career was primarily spent working offshore, where I was responsible for installing and managing projects including the installation of over 70 electrical generation facilities, primarily stand-alone photovoltaics, some hybrid with wind or diesel backup systems. I also supervised projects, including facility construction, water and wastewater systems, and marine operations. As a regular part of my work, I incorporated energy conservation and the use of innovative, renewable, or recycled materials. • In recognition of my work, I received two Federal Energy Management Awards, a White House Closing the Circle Award, and the Department of Interiors Environmental Achievement Award.
• In 2000, I was name requested by the USAID/State Department through the DOI Partnership for Biodiversity to travel to the Galapagos National Park to provide onsite technical assistance to park staff in projects implementing renewable energy, water conservation, wastewater treatment, recycling, and use of innovative building materials. • After my retirement, I volunteered with the US Department of the Interiors International Affairs Office as a team member from 2013-2015. This work involved project management to implement renewable energy and sustainable practices in protected areas, three locations in Jamacia and two in Panama. I traveled to various locations to scope work with the hosts, developed project plans, evaluated proposals and selected the contractors Managed each project by supervising and inspecting the installation and then wrapped up each project with an onsite workshop on system operations, sustainable operations and energy management.
• From 2005 through 2021, I served as a Quality Assurance Auditor for the National Biodiesel Accreditation Commission. Conducted quality compliance audits of biodiesel manufacturing, marketing and laboratory facilities in the US and Canada to verify compliance with the BQ-9000 (biodiesel quality) program requirements. In this part-time position, I annually performed 18-20 onsite audits across the country.
D. Other skills / knowledge / experience to bring to Committee:
• Quite naturally, I live my life being guided by sustainable principles. My residences have been solar powered since 1993, I’ve driven vehicles powered by renewable fuels since 2000 and currently drive electric vehicles powered by my residential solar system. I am in the process of fully electrifying my home by shedding gas appliances and systems. It can be done, and we need to demonstrate the positive health and environmental benefits of living with Clean Power.
Section 3: Additional Information
A. Why you are interested / what you hope to achieve:
• Providing clean, safe, and reliable electrical service to all in our community is a right we have come to depend on. This service should not come as an economic hardship to the community, and I would hope that by serving on the Community Advisory Committee, I will be able to provide input and insight from a consumer’s perspective.
B. List other languages / ability to support non-English speaking communities:
• n/a
C. Anything else you would like CPA to know:
• Obtaining my master’s degree in quality assurance verified my inquisitive mind and desire to work towards improving programs that benefit my community.
Agenda Page 19
Section 4: Commitment
A. I can make the commitment to serve on the committee and attend meetings due to my status as a gainfully unemployed retiree. My time currently involved is advocating for sustainability in our community will easily dovetail with the CPA requirements.
B. Signed to certify electric holder in CPA service territory and meet eligibility requirements? Yes.
Agenda Page 20
2024 Community Advisory Committee New Applicant Summary Candidate: Daniel MoraSubregion: West/Unincorporated Ventura County Eligible Yes Section 1: Personal Information
A. Home Address: Ojai, CA
B. Occupation: Business Agent, LiUNA
Section 2: Qualifications
A. Experience serving on advisory committees / public commissions / similar bodies:
• I've spent time on various boards, coalitions, and committees in the past, including with non-profit organizations like the League of Latin American Citizens in Oxnard, and the Economic Justice Coalition in Santa Barbara, and I'm currently an Executive Board member of the Laborers International Union of North America, Local 585 B. Experience with outreach or community leadership:
• I have worked on behalf of organizations with various regional partners to help bring renewable energy infrastructure to Ventura County. We are advocating for climate action plans that accelerate the decarbonization of the port of Hueneme, moving it closer to net zero, as well as the economic expansion of green jobs.
C. Experience or expertise in energy field:
• For the last 8 years, I've worked with various partners as a part of the Central Coast Labor Council and the Laborers Union for solutions on environmental sustainability and the workforce solutions needed for the future green economy. For the last 2 years, I have worked on getting offshore wind energy jobs in Ventura County. We have advocated and worked on bringing offshore wind energy and EV charging stations to the region.
D. Other skills / knowledge / experience to bring to Committee:
• I have over 15 years of experience working with labor unions, nonprofit organizations, businesses, and elected officials regarding various foundational worker issues, rights, economic justice, and environmental sustainability.
Section 3: Additional Information
A. Why you are interested / what you hope to achieve:
• I would like to bring expertise from the workers' viewpoint that will benefit from affordable and sustainable power, along with advocating for the training and expansion of the green workforce that will be building future projects.
B. List other languages / ability to support non-English speaking communities:
• n/a
C. Anything else you would like CPA to know:
• I am excited to potentially help the CPA board move forward in building a future led by clean energy in southern California while helping us grow economically so our community can sustain working families.
Section 4: Commitment
A. can make the commitment to the board to attend meetings through the two-year term B. Signed to certify electric holder in CPA service territory and meet eligibility requirements? Yes.
Agenda Page 21
2024 Community Advisory Committee New Applicant Summary Candidate: Joe Connett Subregion: West/Unincorporated Ventura County Eligible Yes Section 1: Personal Information
A. Home Address: Ventura, CA
B. Occupation: Retired Engineer/Strategic Planner/Division Director/Deputy Public Works Officer/Program Lead
Section 2: Qualifications
A. Experience serving on advisory committees / public commissions / similar bodies:
• Secretary, Los Padres Chapter, Sierra Club; Member, Member, Sierra Club, Santa Barbara/Ventura Chapter, Political Committee; Ventura Network Sierra Club ExCom.
B. Experience with outreach or community leadership:
• Advocated at Oxnard City Council, for Electrification Reach Code, Distributed food at Oxnard food bank, demonstrated and described EV at various EV events, maned Sierra Club tables at various events.
C. Experience or expertise in energy field:
• CEM trained but not certified, As LEED-AP. Led the first certification (Silver) of an existing Navy building.
• Program lead responsible for the execution of Environmental and Energy Projects.
Directed work of over 30 engineers and scientists managing over 110 RDT&E and in-service engineering projects with a value of over $34M. • Strategic Planner and Quality Manager for 600-person Research and Development and Engineering Services Lab
• Deputy Public Works Manager for 18-person Public Works organization performing Design, Construction, Public Works, Energy, and Environmental Services through direct work and contracts
• Manager of 15-person Division providing facility systems research, development, delivery • Registered Civil Engineer, CA
D. Other skills / knowledge / experience to bring to Committee:
• Analysis
• Consulting
• Teaching
• Facilitating
• Strategic Planning
• Program and Product Management
• Organizing and leading teams
• Communications - written, oral, all media.
Section 3: Additional Information
D. Why you are interested / what you hope to achieve:
• I’m very impressed with the CPA's success in bringing clean energy to Ventura County. Its approach is a practical, effective way to increase the use of green energy. I have heard from my colleague and your member, Vern Novstrup, of the effectiveness of your work.
My knowledge, skills and abilities would help me bridge communication between utilities and community.
Agenda Page 22
E. List other languages / ability to support non-English speaking communities:
• n/a
F. Anything else you would like CPA to know:
• n/a
Section 4: Commitment
C. I can make the commitment.
D. Signed to certify electric holder in CPA service territory and meet eligibility requirements? Yes.
Agenda Page 23
Attachment 4
Current Eligible Directors for Board Chair/Committee
Chairs/Executive Committee
Jeff Maloney Alhambra
Michael Cao Arcadia
Susan Santangelo Camarillo
Cedric Hicks Carson
Corey Calaycay Claremont
Alex Monteiro Hawthorne
Lindsey Horvath* Los Angeles County
Marianne Riggins Malibu
Amy Howorth Manhattan Beach
Renee Delgado Moorpark
Betsy Stix Ojai
Bert Perello Oxnard
Vilma Cuellar Stallings Paramount
Debby Stegura Rolling Hills Estates
Gleam Davis Santa Monica
Jenny Crosswhite Santa Paula
Robert Parkhurst Sierra Madre
Rocky Rhodes Simi Valley
Jon Primuth South Pasadena
David Newman Thousand Oaks
Liz Campos Ventura City
Vianey Lopez* Ventura County
John Erickson West Hollywood
* Automatic Vice Chair Appointment
Agenda Page 24
Staff Report – Agenda Item 4
To: Executive Committee
From: Karen Schmidt, Director, Rates & Strategy
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Receive Presentation on FY 2024-25 Rates Outlook Date: March 21, 2024
RECOMMENDATION
Staff will provide a presentation on the item.
ATTACHMENT
1. FY 2024-25 Rates Outlook Presentation
Agenda Page 25
Item 4
FY 2024-25 Rates Outlook
March 21, 2024
Agenda Page 26
Summary
Rate options for FY 2024/25 will need to take into consideration the following three parameters:
1. Price spread between CPA’s three rate products, which is largely dependent on the amount of Renewable Energy in each product
2. Competitiveness as SCE reduced generation rates in January 2024 and will do so again in June before reversing those declines with a projected hike in January 2025
3. The need to continue to build reserves to account for increased market volatility, while enabling CPA to deliver on its mission to fund local customer programs
Staff will present background on each parameter to the Board on April 4 At the April 18 ExCom meeting, staff will present rate approach options and ask that ExCom recommend an approach to the full Board at its May 2 meeting Final rates based on Board direction on May 2 will be approved at the June 6 Board meeting in conjunction with the adoption of the FY 24/25 budget Rate and financial projections are preliminary and subject to change Agenda Page 27
2 Product Content Scenarios
SCENARIOS
(All scenarios assume 100% Green
remains 100% Renewable Energy)
CONTENT AND NOTES
1. Set 2025-2026 Lean and Clean Product
Content at 2023 Levels
Lean = 40% GHG-free (20% RE minimum)
Clean = 50% GHG-free (50% RE)
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. 2025-2026 Clean RE Product Content at 25%
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
At the February 15 Executive Committee meeting, staff presented an analysis of the renewable energy market, highlighting both price spikes and physical supply shortages For rate setting, budget preparation, and position management a target needs to be set. Staff is seeking consensus from the Executive Committee that Scenario 3 should be the target for 2025 and 2026 as it is the most achievable, maintains CPA’s overall preference for renewables and allows for competitive rates
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
Product Differentials
5 Energy Product FY 2023-24
Board Targets
Scenario 2
(Clean 50%
CF/40% RE)
Scenario 3
(Clean 50%
CF/25% RE)
Scenario 4
(Clean 50% CF /
0% RE)
Lean -1.0% -3.7% -1.2% -0.1%
Clean 0% 0% 0% 0%
100% Green +4.0% +3.9% +5.4% +5.6%
Maximum Spread
(Lean to 100%
Green)
5% 7.6% 6.6% 5.7%
FY 2024-2025 Product Price Differentials (Compared to Clean) Differentials generally widen as more carbon-free and less renewables are used Prices for carbon-free have climbed significantly in recent weeks, which could narrow the differentials shown above by ~1-2 percentage points as CPA moves through the rate setting process
Agenda Page 30
6 $0.15 $0.17 $0.15 $0.14 $0.15
$0.18
$0.19 $0.21 $0.23
$0.25
$0.00
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
3/1/2023 6/1/2023 1/1/2024 6/1/2024
Forecast
1/1/2025
Forecast
$/kWh
SCE Gen SCE Delivery
3/1/2023 6/1/2023 1/1/2024 6/1/2024
Forecast
1/1/2025
Forecast
Total
Change
3/1/2023
to
1/1/2025
Incremental
change - delivery 4.8% 13.5% 10.4% 5.3% 38%
Incremental
change - gen
6.8% -9.7% -6.6% 7.6% -3.0%
Total average
monthly bill $172 $182 $187 $193 $205 19%
Incremental
change - total bill $10 $5 $6 $12 $33
SCE rates have and will fluctuate
significantly over an 18-month period
SCE Domestic Rates
Agenda Page 31
Rate Comparisons - 2022 to 2025
Energy Product
Comparison to
SCE base rate
(July 2022)
Comparison to
SCE base rate
(April 2023)
Board
Approved
Targets for
FY 23/24
(July 2023)**
Comparison to
SCE base rate
(October
2023)
Comparison to
SCE base rate
(Current)
Comparison to
SCE base rate
(June 2024
Forecast)***
Comparison to
SCE base rate
(Jan 2025
Forecast)***
Lean Power -1% -6% -2% -5% -3% 0% (parity) -2%
Clean Power 0% (parity) -5% -1% -4% -2% +1% -1%
100% Green
Power +3% -1% +3% 0% (parity) +2% +4.5% +2.5%
CPA-SCE Rate Comparisons – Residential Customers*
*Total bill comparison for customers on Domestic rate schedule with 2018 vintage PCIA, based on average customer usage and load profiles in effect at the time of the comparison.
**Compared to SCE rates as of March 1, 2023.
***Assumes no change to CPA rates or product differentials; bill comparisons for PCIA vintages other than 2018 and non-residential rate classes vary widely.
Agenda Page 32
8 Reserves and Financial Targets
Contribution to
Net Position ($M) Reserves Days Liquidity on Hand (DLOH) FY 2022-23 Year End
(6/30/2023) 20% 97
FY 2023-24 Forecast
(6/30/2024) $219 33% 129
FY 2024-25 Forecast
(6/30/2025) TBD 35-45% > 120
Financial Reserve Metrics
Projected contribution to net position, reserves, and other FY 2024-25 financial outcomes will be dependent on the rates the Board approves in June Agenda Page 33
Rate scenarios and a proposed rate approach will be presented to the CAC and Executive Committee in April and to the Board in May
The FY2024/25 budget and rate setting process will continue as follows:
Next Steps
Month 2024/25 Rate Setting 2024/25 Budget
March Confirm direction on product
content approach
April Brief Board on rate setting
parameters
ExCom recommends rate setting
approach
Discuss budget priorities
(ExCom and Finance Committees)
May Adopt rate setting approach
(Board)
Discuss budget priorities
(Board)
June Adopt final rates (Board) Adopt final budget
July Implementation of FY 24/25 rates Start of new Fiscal Year Agenda Page 34
9 Questions and Discussion
Agenda Page 35