MINUTES
Energy Planning & Resources Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, June 26, 2024, 12:15 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:
Manhattan Beach City Hall
City Manager Conference Room
1400 Highland Avenue
Manhattan Beach, CA 90266
Clean Power Alliance Office
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Alhambra City Hall
Conference Room A
111 S. First Street
Alhambra, CA 91802
Arcadia City Hall
Council Chambers Conference Room
240 W. Huntington Drive
Arcadia, CA 91007
West Hollywood City Hall
3rd Floor Conference Room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
Los Angeles County Sanitation District
Conference Room D
1955 Workman Mill Road
Whittier, CA 90601
City of Oxnard Service Center 1
East Conference Room
214 South C Street
Oxnard, CA 93030
California Climate & Energy Collaborative
Forum Margaritaville Resort
Coconut Telegraph Center/Business Center
1600 North Indian Canyon Drive
Palm Springs, CA 92262
CALL TO ORDER & ROLL CALL
Chair Parkhurst called the meeting to order at 12:15 p.m. and Gabriela Monzon, Board Clerk, conducted roll call.
ROLL CALL
Alhambra Jeff Maloney Committee Member Remote
Arcadia Michael Cao Committee Member Remote
Carson Reata Kulcsar Committee Member Remote
Manhattan Beach David Lesser Committee Member Remote
Oxnard Kathleen Mallory Committee Member Remote
Sierra Madre Robert Parkhurst Committee Chair Remote
South Pasadena Diana Mahmud Committee Member Absent
Thousand Oaks Helen Cox Committee Member Absent
West Hollywood Chelsea Byers Committee Member Remote
All votes are unanimous, unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the May 28, 2024, Energy Committee Meeting
2. Receive and File May 2024 Risk Management Team Report Motion: Committee Member Lesser, Manhattan Beach
Second: Committee Member Mallory, Oxnard
Vote: The consent agenda was approved by a roll call vote, with an abstention from Committee Member Cao on Item 1.
REGULAR AGENDA
3. Oral Update from the Vice President of Power Supply
Lindsay Descagnia, Vice President of Power Supply, provided an update on the 2024 Clean Energy and Reliability RFO, and discussed the Interconnection Consultant Contract.
4. Review and Recommend Approval of Proposed ERMP Amendments to the Board of Directors
Lyon Hardgrave, Director of Energy Risk Management, presented the item.
Proposed updates respond to emerging risks, changing business conditions, and regulatory requirements. They include raising the maximum hedge limits for transactions in the second quarter (Q2) for years four or more in the future from 70% to 90%; adjusting CPA’s Resource Adequacy (RA) purchasing and maximum hedge requirements; clarifying the amendment of long-term contracts; clarify certain procurement contracting and credit terms; and streamlining financial reporting. Mr. Hardgrave reviewed the changes in RA requirements, mainly that hedge limits changed from a monthly context to a new slice-of-day framework.
CPA must procure RA in each hour to better match resource availability with demand patterns throughout the day. Staff also presented proposed amendments to CPA’s policy requiring Board approval for changes to long-term contracts, specifically, adding clarification to define administrative changes staff can make in contrast to material changes that require Board approval. In response to Committee Member questions, staff clarified what would be considered administrative changes to long-term contracts. The proposed edits include monthly reporting to the Board on any such changes. Mr. Hardgrave also discussed changes to Section 6 Credit Policy and Counterparty Suitability, intended to govern short-term transactions. Staff also recommends eliminating the financial report from the quarterly RMT and presented only in the Quarterly Financial Report. Mr.
Bardacke clarified that the Energy Risk Management Policy is periodically reviewed by CAISO, even though the ERMP is not a regulatory requirement.
Committee Member Lesser requested comparative data on raising the hedge limits and its impact. Staff described the fluctuations in energy production throughout the year as a response to lower energy consumption by customers in the second quarter. The goal is not to be hedged too far in the future if retail prices drop, cutting into CPA’s expected revenue. Changing the hedge limits can help mitigate this risk; overall, buying long-term renewable energy contracts buffers against short-term volatile markets and helps decarbonization. The Committee directed staff to expand its explanation regarding hedge limits to the full Board. Regarding Committee Member Kulscar’s inquiry about the minimum number of staff members on the RMT, Nancy Whang, General Counsel, provided sample language clarifying that four staff members are assigned and three are required to take action. If staff members are on leave, others can fill in.
Motion: Committee Member Kulcsar, Carson
Second: Committee Member Mallory, Oxnard
Vote: Item 4 was approved by a roll call vote.
COMMITTEE MEMBER COMMENTS
Committee Members expressed their appreciation for the recent Board Retreat and noted the opportunities to meet other Board members in person and to learn about CPA’s operations and the clean energy industry.
ADJOURN
Chair Parkhurst adjourned the meeting at 12:00 p.m.