March 21, 2024
MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, March 21, 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
Hilton San Francisco Union Square
333 O’Farrell Street
San Francisco, CA 94102
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. Chair-Elect Klein Lopez presided over the meeting.
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
Hawthorne Alex Monteiro Committee Member Present
Los Angeles County Rita Kampalath Alternate Remote
March 21, 2024
Ojai Betsy Stix Committee Member Remote
Sierra Madre Robert Parkhurst Committee Member Remote
South Pasadena Diana Mahmud Immediate Past Chair Present 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 February 15, 2024, Executive Committee Meeting Motion: Committee Member Mahmud, South Pasadena
Second: Committee Member Gold, Beverly Hills
Vote: The consent agenda was approved by a roll call vote
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
Ted Bardacke, Chief Executive Officer, reported that the CPUC has certified CPA’s expansion plan for the cities of La Cañada Flintridge, Lynwood, and Port Hueneme, bringing CPA’s service to 38 cities and almost 1.1 million customers.
The CPUC also released a proposed decision regarding the DAC solar programs, affecting CPA’s Power Share program; CPA was awarded more capacity and may add 1,500 more customers to its program. Mr. Bardacke also discussed Assembly Bill 1852, the Sun Storage Rebate Program, and current federal lobbying efforts related to a request for $1.4 million for the Power Ready program. Staff is planning to include a proposal in CPA’s 2024-2025 budget to hire a federal lobbyist.
3. Review Draft Agenda for the April 4, 2024, Board of Directors Meeting Mr. Bardacke reviewed the consent agenda items, including the Community Advisory Committee appointment, a contract to enhance CPA’s Energy Trading and Risk Management (ETRM) system, upcoming Power Purchase Agreements for rooftop solar, and CalCCA collaboration efforts.
Items on the Regular Agenda include a presentation on Rates, Committee Chair appointments, and the Executive Committee at-large nomination period.
4. Receive Presentation on FY 2024-25 Rates Outlook
Karen Schmidt, Director of Rates and Strategy, described the three parameters that will be informing the 2024-2025 rate-setting process: the price spread among CPA’s rate products, competitiveness related to SCE’s generation rates, and the need to build financial reserves while continuing to fund local customer programs.
Mr. Bardacke noted that the Community Advisory Committee supports Scenario 3, which sets the 2025-2026 Clean Renewable Energy Product Content at 25 percent while maintaining low GHG levels. Cost and availability of renewable energy is a significant challenge. Staff requests that the Executive Committee provide direction regarding the target scenario related to budget and rate-setting to develop
March 21, 2024
rate options. Staff projects that CPA will return to its current product content levels in 2027 assuming all projects come online. L.A. County CARE customers will be delayed in transitioning to 100% Green until the first quarter of 2027. Staff is working with Vice Chair Horvath’s office to develop an alternative benefit for those customers. Mr. Bardacke reviewed the FY 2024-2025 product price differentials, comparing various levels of renewable energy, noting that differentials generally widen as more carbon-free and less renewables are used. As competition for renewable energy increases, the cost of hydroelectric power is increasing, so there may be adjustments to these calculations. Ms. Schmidt presented on the competitive landscape involving SCE and CPA rates, stating that SCE’s fluctuating delivery and generation rates have not negatively impacted CPA’s competitive position. Staff will come back to the Executive Committee with a range of rate-setting approaches and budget priorities based on feedback.
Committee Member Mahmud asked whether the product differentials chart reflected FY 2025-2026 projections or a later period, and Mr. Bardacke responded that State regulation requires product content to run on a calendar year cycle, so staff has to look at targets for the calendar year 2025 and 2026 to conduct rate setting. In response to Committee Member Mahmud’s inquiry about the delay of 100% Green for some L.A. County CARE customers, staff clarified the delay affects only CARE customers in unincorporated LA County; more than 80 percent of unincorporated L.A. County’s load is already on 100% Green. In response to Committee Member Hicks’s question about Scenarios 3 and 4, Mr. Bardacke noted that Scenario 4 may not be achievable because it relies on an abundance of rain to generate hydroelectric energy. Scenario 3 would set a 25% minimum target of renewable energy and Scenario 4 would be at a minimum of zero percent renewable energy, but both would be within the same 50%GHG-free component.
Chair Gold remarked that flexibility is important to achieve as much renewable energy as possible; Mr. Bardacke agreed, adding that flexibility in rates is necessary to ensure there is enough revenue to purchase renewable energy, should hydroelectric prices increase or not be available. Committee Member Mahmud commented that it’s more cost-effective to have staff procure renewable energy before there’s a lack of hydroelectric power on the market. Committee Members indicated their support for Scenario 3.
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
Chair Klein Lopez stated there was nothing to report from Closed Session.
COMMITTEE MEMBER COMMENTS
Committee Member Mahmud made farewell remarks and expressed pride in the agency’s success, thanked Board Members and staff, and acknowledged the leadership of outgoing Chair Gold and of incoming Chair Klein Lopez. Committee Members expressed thanks for her leadership and continued involvement with CPA.
ADJOURN
Chair Klein Lopez adjourned the meeting at 3:26 p.m.