MINUTES
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, June 6, 2024, 2:00 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Clean Power Alliance
Diana Mahmud Board Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Board members participated from the following locations:
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91301
Ventura County Government Center
Channel Islands Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Whittier City Hall
Admin Conference Room
13230 Penn Street
Whittier, CA 90602
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
Courtyard Roseville Galleria Mall/Creekside Ridge Drive Conference Room
301 Creekside Ridge Court
Roseville, California 95678
CALL TO ORDER & ROLL CALL
Vice Chair Horvath called the meeting to order at 2:00 p.m. and Gabriela Monzon, Clerk of the Board, conducted roll call.
PLEDGE OF ALLEGIANCE
Director Calaycay led the pledge of allegiance.
Roll Call
1 Agoura Hills Deborah Klein Lopez Chair Absent
2 Alhambra Jeff Maloney Director Present
3 Arcadia Michael Cao Director Present
4 Beverly Hills Julian Gold Director Present
5 Calabasas Ed Albrecht Alternate Remote
6 Camarillo Susan Santangelo Director Remote
7 Carson Absent
8 Claremont Corey Calaycay Director Present
9 Culver City Yasmin-Imani
McMorrin Director Present
10 Downey Absent
11 Hawaiian Gardens Absent
12 Hawthorne Alex Monteiro Director Present
13 Hermosa Beach Justin Massey Director Present
14 Los Angeles County Lindsey Horvath Vice Chair Present 15 Malibu Absent
16 Manhattan Beach Absent
17 Monrovia Absent
18 Moorpark Renee Delgado Director Remote
19 Ojai Betsy Stix Director Remote
20 Oxnard Bert Perello Director Remote
21 Paramount Absent
22 Redondo Beach Absent
23 Rolling Hills Estates Debby Stegura Director Remote
24 Santa Monica Absent
25 Santa Paula Jenny Crosswhite Director Present
26 Sierra Madre Robert Parkhurst Director Remote
27 Simi Valley Rocky Rhodes Director Present
28 South Pasadena Diana Mahmud Alternate Present
29 Temple City Ed Chen Director Present
30 Thousand Oaks David Newman Director Remote
31 City of Ventura Liz Campos Director Remote
32 Ventura County Vianey Lopez Vice Chair Remote
33 West Hollywood John Erickson Director Present
34 Westlake Village Absent
35 Whittier Absent
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: 2
Nancy Whang, General Counsel, reported that the Board of Directors voted unanimously to approve the following settlement agreements:
1.1 A settlement agreement between CPA and Desert Quartzite to resolve a dispute between the parties with respect to certain rights and obligations under the Power Purchase Agreement.
1.2 A settlement agreement between CPA and Arlington Energy Center to resolve a dispute between the parties with respect to the obligations related to the battery storage component; CPA agrees to a one-time payment of $4,310,188.
CONSENT AGENDA
2. Approve Minutes from the May 2, 2024 Board of Directors Meeting
3. Adopt Resolution No. 24-06-063 Authorizing and Approving the Opening of an Investment Account with US Bank National Association to Invest Funds in Securities Permitted under CPA’s Investment Policy
4. Approve and Authorize the Chief Executive Officer to Execute the Following Agreements:
A. A One-Year Professional Services Agreement for Fiscal Year 2024/2025 with School of Thought for a Not-to-Exceed Amount of $1.01 Million for Creative Services to Support Enrollment of CPA Programs, Develop Marketing Strategy, and Grow CPA’s Brand Awareness, with an Option for One Year Renewals, up to A Maximum of Two Additional Years After the Initial One-Year Term
B. A One-Year Professional Services Agreement for Fiscal Year 2024/2025 with Pastilla, Inc. for a Not-to-Exceed Amount of $365,000 for Web Development, Web Maintenance and As-Needed Creative Services, with an Option for One Year Renewals, up to A Maximum of Two Additional Years After the Initial One-Year Term
5. Receive and File Fiscal Year Q3 Financial Report
6. Receive and File Calendar Year Q1 Risk Management Team Report
7. Receive and File Calendar Year Q2 Communications Report
8. Receive and File Calendar Year Q2 Power Ready Report
9. Receive and File Bill Positions June 2024 Monthly Report
10. Receive and File Monthly Community Advisory Committee Report Motion: Director Erickson, West Hollywood
Second: Director Parkhurst, Sierra Madre
Vote: The consent agenda was approved by a roll call vote with an abstention from Director Massey as to Item 2.
REGULAR AGENDA
11. Adopt Resolution No. 24-06-064 to Approve New Rates for Phase 1 & 2 Non-Residential Customers, Resolution No. 24-06-065 to Approve New Rates for Phase 3 & 5 Residential Customers, Resolution No. 24-06-066 to Approve New Rates for Phase 4 & 5 Non- Residential Customers, and Resolution No. 24-06-067 to Approve New Rates for All Phase 6 Customers. These Resolutions will implement new CPA rates effective on July 1, 2024, according to the Fiscal Year 2024/25 Rates Approach Adopted by the Board of Directors on May 2, 2024
Ted Bardacke, Chief Executive Officer, stated that the Board provided direction on a rate approach at its last Board meeting. Staff developed rates using the Medium Reserve scenario.
In response to Director Crosswhite’s inquiry about the impact of TOU rates for EV charging, staff responded that customers who elect to go on CPA’s new TOU rate option for EV charging will have incentives to charge during the day when solar is more available, but they will will also have the rate option to that incentivizes charging overnight. Director Massey asked for a summary of the cost adjustments from last year; staff responded that the rates reflect the rising cost of renewable energy and the Board’s target for reserve levels.
Motion: Director Gold, Beverly Hills
Second: Director Mahmud, South Pasadena
Vote: Item 11 was approved by a roll call vote
12. Approve the Proposed Fiscal Year 2024/2025 Budget as Recommended by the Finance Committee
David McNeil, Chief Financial Officer, presented a timeline of the budget process and budget highlights. Mr. McNeil provided details on operating expenses, noting increases in staffing, communications, and customer programs. The cost of energy also increased by 12%, reflecting increased costs of Resource Adequacy and Renewable Energy. CPA compares favorably with other CCAs of similar size. Finance Committee Chair Santangelo noted that the Committee fully supports the proposed budget and praised staff for progressing toward reserve goals and the DLOH target.
Responding to Director Erickson’s question about stipends for CPA Board members, staff explained that when CPA was formed, there was some sensitivity around creating another body that generated pay for its Board members, and stipends were therefore not pursued. Director Mahmud added that in its formative years, CPA’s Board leadership felt it was important to have Board members who were committed to the mission of the organization rather than seeking out regional boards that offered stipends. Regarding Director Mahmud’s question about SCE’s debt collection efforts, Mr. McNeil noted that commercial customer payments have returned to normal. SCE has explored various ways of collecting from residential customers and has resumed limited collection efforts.
CPA will engage in collection efforts only after a customer account has been closed with SCE. Director Massey asked about driving factors for the cost of renewable energy and why CPA’s operating expenses appear to be higher than other CCAs. Staff projects that renewables costs will increase for the next two years and then decrease; at the same time, CPA’s long-term contracts will come online and reduce renewable energy costs.
Regarding operating expenses, staff noted that because CPA is bigger that other CCAs it will have higher operating expenses and therefore percentages of revenue provide a more accurate comparison.
Motion: Director Monteiro, Hawthorne
Second: Director Mahmud, South Pasadena
Vote: Item 12 was approved by a roll call vote
13. Approve and Authorize the Chief Executive Officer to Execute a Professional Services Agreement with CLEAResult Consulting, Inc. to Support the Energy Advisor Program by Providing Customer-Facing Electrification Support Services to Residential and Small Business Customers in a 3-Year Initial Term with a Not-to-Exceed Amount of $2,194,003, with an Option for One Year Renewals, up to a Maximum of Two Additional Years after the First Initial Term
Xico Manarolla, Electrification Program Manager, presented details on the proposed professional service agreement with CLEAResult Consulting, Inc., which will provide technical support to help residential and small business customers evaluate potential upgrades, apply for rebates, and find local contractors to complete projects. The Energy Advisor program aims to address barriers to electrification, maximize CPA customer access to regional, state, and federal incentives, and connect customers to other CPA programs. The program will also seek customer feedback to improve service. Mr.
Manarolla described the competitive RFP process and stated that the company has experience running energy advisor programs and offers trained call center staff.
Vice Chair Horvath asked how the program would apply to renters and suggested staff conduct outreach to small businesses and utilize community-based organizations to communicate programs and services. Staff clarified that renters must engage their property managers or owners to make upgrades; rebates are available for centralized and wall-unit AC systems. Director Mahmud inquired about the launch date and contractual numbers for customer engagement. Staff stated the program would launch in early September 2024; the contract can be revisited if customer engagement numbers are higher than projected. Director Monteiro suggested partnerships with local agencies like the South Coast Air Quality Management District to reach more bilingual and elderly customers. In response to Director Crosswhite’s question about the recommendation/vetting of contractors, staff clarified that customers will be directed to a state-funded contractor database that lists highly-rated contractors who have completed technical training. Director Maloney expressed support for the program and outreach to non-English speaking customers. Director Gold suggested that member agencies coordinate outreach efforts with CPA to avoid duplicative outreach; staff should also track program participation by customer categories to ensure resources are fairly distributed.
Director Massey asked about the customer’s ability to benchmark project costs and requested details on how staff will track contractual obligations related to customer engagement. Staff explained that the vendor would provide benchmarking to customers using its market data; staff added that the contract includes fixed costs and hourly charges for specific tasks relating to customer engagement and has the flexibility to ensure the vendor meets contractual requirements. Director Massey agreed with Directors Gold and Monteiro about collaborating with other local agencies involved in clean energy and EV charging.
In response to Director Newman’s questions about contractor recommendations, Joanne O’Neill, Director of Customer Programs, stated that the Energy Advisor program will act as an unbiased third-party entity providing resources, including licensed contractors.
Customers may choose their own contractors.
Motion: Director Erickson, West Hollywood
Second: Director Mahmud, South Pasadena
Vote: Item 13 was approved by a roll call vote
14. Approve and Authorize the Chief Executive Officer to Execute the following Long-Term Power Purchase Agreements: (A) 20-Year Power Purchase Agreement with Solar Star 3, LLC for a 24 MW Solar and 23 MW Battery Energy Storage System; (B) 20-Year Power Purchase Agreement with Solar Star 4, LLC for a 24 MW Solar and 23 MW Battery Energy Storage System
Director Parkhurst commented that this is CPA’s first contract with a subsidiary of Berkshire Hathaway and that it was made possible because of CPA’s credit rating.
Motion: Director Mahmud, South Pasadena
Second: Director Erickson, West Hollywood
Vote: Item 14 was approved by a roll call vote.
COMMITTEE CHAIR UPDATES
Finance Committee Chair Santangelo reported that CPA is showing a strong finish in the 3rd Quarter, contributing $126 million to the net position. CPA opened an investment account with U.S. Bank to lock-in yields and protect against declining interest rates.
Energy Committee Chair Parkhurst reported that the deadline to file CPA’s annual IRP has been extended a year. The 2024 Clean Energy and Reliability RFO launching this month aims to reduce exposure to short-term market volatility and create a more blended portfolio that still needs baseload resources.
MANAGEMENT REPORT
Mr. Bardacke discussed the Board Retreat; CPA has met its 2024 Resource Adequacy compliance; CPA is responsible for just under 10% of the 9,000 new megawatts of capacity that has been added to the California grid by the end of June. CPA will also be able to add between 1,500 to 3,000 new low-income customers to its Power Share program because of the successful resource contracting for that program.
BOARD MEMBER COMMENTS
None.
REPORT FROM THE CHAIR
None.
ADJOURN
Vice Chair Horvath adjourned the meeting at 4:14 p.m.