1.3.Mobile app issues: The mobile application provided by the Contractor does not receive or display push notifications authorized by the User, does not display accurate energy consumption or cost data for the Authorized User, or does not display an accurate location for the User’s charging session(s).
1.3.1. For mobile app issues, Contractor shall work with Authorized Users who raise an issue with the mobile app to troubleshoot and/or identify the root
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cause of the issue, release a fix in the subsequent app update where feasible, and email the affected User(s) explaining the cause of the error/discrepancy and outlining resolutions including but not limited to an update to the mobile app. Contractor will regularly issue updates to the mobile app to ensure continued compatibility with the latest Apple iOS and Google Android software.
2. Service Levels.
2.1.Availability Service Level.
2.1.1. Definitions.
2.1.1.1. “Actual Uptime” shall mean the total minutes in the reporting month that the Services were actually available to Authorized Users for normal use.
2.1.1.2. “Maintenance Window” shall mean the total minutes in the reporting month represented by the mutually agreed day(s) and time(s) during which Contractor shall maintain the Services.
2.1.1.3. “Scheduled Downtime” shall mean the total minutes in the reporting month represented by the Maintenance Window.
2.1.1.4. “Scheduled Uptime” shall mean the total minutes in the reporting month less the total minutes represented by the Scheduled Downtime.
2.1.2. Service Level Standard. Services will be available to Authorized Users for normal use 99% of the Scheduled Uptime.
2.1.3. Service Level Standard Calculation. (Actual Uptime / Scheduled Uptime) * 100 = Percentage Uptime.
2.2.Technical Support Problem Response and Resolution Service Level.
2.2.1. Definition. “Total Problems” shall mean the total of problems occurring in the reporting month.
2.2.2. Service Level Standard. The Contractor will respond to two categories of problems associated with delivery of the Services
2.2.2.1. Problems that shall be investigated and resolved within 5 working days if the problem prevents >25% of Authorized Users from accessing the Services to charge their vehicle as required; and
2.2.2.2. Problems that shall be investigated and resolved within 15 working days if >25% of Authorized Users are able to access the Services to charge their vehicle as required but are unable to access a specific functionality delivered by Contractor.
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Exhibit C – Compensation
1. Program Fees.
Contractor shall satisfactorily provide all the contemplated Services detailed in Exhibit A at the price per deliverable specified in Table 1 below and in compliance with the terms and conditions of this Agreement.
Table 1
Initial Term (September 9, 2024, through September 8, 2025) Task Description Estimated Due
Date
Maximum
Authorized Fees
1 Kick-off & Implementation Plan 11/4/2024 Included
Development of Managed Charging Platform
Development of Customer Interface
Following delivery
of a managed
charging platform
and customer
interface
$37,500
2 Customer Incentive management and
administration, at $3 per Enrollment Incentive
and $0.50 per Participation Incentive
Ongoing over the
duration of the
Agreement
$26,400
Marketing outreach and user acquisition, at a
fixed one-time cost of $30 per new EV
Ongoing over the
duration of the
Agreement
$105,000
Customer Support
Ongoing over the
duration of the
Agreement
3 Included
All other marketing activities, including
translation
Ongoing over the
duration of the
Agreement
$12,500
4 OEM development and management 1/7/2025 Included
5 Program administration, management, and
reporting, at the subscription rates set forth in
Table 2
Monthly over the
duration of the
Agreement
$205,000
6 Transition services 6/10/2025 Included
7 Passive Managed Charging Expansion
Design Memo and Plan
To be determined
following program
launch
Included
Contingency, reserved for use only with prior written CPA approval $20,000 Maximum Authorized Fees for the Initial Term $406,400
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First Renewal Term (September 9, 2025, through September 8, 2026) Task Description Estimated Due
Date
Maximum
Authorized Fees
2 Customer Incentive management and
administration, at $3 per Enrollment Incentive
and $0.50 per Participation Incentive
Ongoing over the
duration of the
Agreement
$33,000
Marketing outreach and user acquisition, at a
fixed one-time cost of $30 per new EV $105,000
3 Customer Support Included
All other marketing activities, including
translation
Ongoing over the
duration of the
Agreement $12,500
4 OEM development and management
Ongoing over the
duration of the
Agreement
Included
5 Program administration, management, and
reporting at the subscription rates set forth in
Table 2
Monthly over the
duration of the
Agreement
$360,000
6 Transition services 6/10/2026 Included
Contingency, reserved for use only with prior written CPA approval $75,000 Maximum Authorized Fees for the First Renewal Term $585,500 Second Renewal Term (September 9, 2026, through September 8, 2027) Task Description Estimated Due
Date
Maximum
Authorized Fees
2 Customer Incentive management and
administration, at $3 per Enrollment Incentive
and $0.50 per Participation Incentive
Ongoing over the
duration of the
Agreement
$39,600
Marketing outreach and user acquisition, at a
fixed one-time cost of $30 per new EV $105,000
3 Customer Support Included
All other marketing activities, including
translation
Ongoing over the
duration of the
Agreement $12,500
4 OEM development and management
Ongoing over the
duration of the
Agreement
Included
5 Program administration, management, and
reporting at the subscription rates set forth in
Table 2
Monthly over the
duration of the
Agreement
$420,000
6 Transition services 6/10/2027 Included
Contingency, reserved for use only with prior written CPA approval $75,000 Maximum Authorized Fees for the Second Renewal Term $652,100
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Contractor’s monthly subscription costs for Task 5 are set forth in Table 2 below:
Table 2
Number of Enrolled
Vehicles
Monthly Subscription
Costs
0-500 $7,500
501-999 $10,000
1,000 - 1,999 $12,500
2,000 - 4,999 $20,000
5,000 - 9,999 $25,000
10,000 - 19,999 $35,000
Initial Term: Maximum Authorized Fees $406,400
First Renewal Term: Maximum Authorized Fees $585,500
Second Renewal Term: Maximum Authorized Fees $652,100
Any travel, administrative expenses, and materials (hereinafter, “Expenses”) will be billed in the amount incurred by Contractor for actual out-of-pocket cost, without any additional mark-up by Contractor. Any Expenses incurred shall be billed for the month in which the Expenses are incurred. Expense reports detailing all Expenses, along with receipts, shall be presented to CPA for reimbursement. All expenses must be approved by CPA in advance writing before they are incurred. The following Expenses may be eligible for reimbursement under this Agreement:
Description Maximum Authorized
Expenses
Initial Term: payment issuance costs not to exceed 2% of the Customer Incentives set forth in Table 3 Up to $22,523 First Renewal Term: payment issuance costs not to exceed 2% of the Customer Incentives set forth in Table 3 Up to $30,030 Second Renewal Term: payment issuance costs not to
exceed 2% of the Customer Incentives set forth in Table 3 Up to $37,538 Maximum Authorized Expenses Up to $90,091
The Total Maximum Amount that CPA shall pay Contractor, including any subcontractor that the Contractor may retain, for all Services and Expenses to be provided under this Professional Services Agreement shall not exceed Four Hundred Twenty-Eight Thousand Nine Hundred Twenty-Three Dollars ($428,923) ("Not-to-Exceed" or "NTE") during the Initial Term. The Total Maximum Amount does not include Customer Incentives as set forth in Section 2 below.
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Initial Term: Maximum Amount Up to and Not to Exceed $428,923 The Total Maximum Amount that CPA shall pay Contractor, including any subcontractor that the Contractor may retain, for all Services and Expenses to be provided under this Professional Services Agreement shall not exceed Six Hundred Fifteen Thousand Five Hundred Thirty Dollars ($615,530) ("Not-to-Exceed" or "NTE") during the First Renewal Term, if authorized. The Total Maximum Amount does not include Customer Incentives as set forth in Section 2 below.
First Renewal Term: Maximum Amount Up to and Not to Exceed $615,530 The Total Maximum Amount that CPA shall pay Contractor, including any subcontractor that the Contractor may retain, for all Services and Expenses to be provided under this Professional Services Agreement shall not exceed Six Hundred Eighty-Nine Thousand Six Hundred Thirty-Eight Dollars ($689,638) ("Not-to-Exceed" or "NTE") during the Second Renewal Term, if authorized. The Total Maximum Amount does not include Customer Incentives as set forth in Section 2 below.
Second Renewal Term: Maximum Amount Up to and Not to Exceed $689,638 Contractor shall satisfactorily perform and complete, in the judgement of CPA, all required Services in accordance with Exhibit A notwithstanding the fact that total payment from CPA shall not exceed the NTE.
2. Customer Incentives.
Contractor shall pay Customer Incentives to eligible customers (“Customer Payments”) on behalf of CPA. The total amount of Customer Payments during each specified term of this Agreement shall not exceed the estimated amounts set forth in Table 3 below without the prior written approval of CPA. Customer Incentives are only to be paid upon successful enrollment of customers into the program and Customer Payments may not commence until authorized by CPA.
Table 3: Estimated Customer Incentives
Period
Projected
New
Customers
Estimated
Enrollment
Incentive
Estimated
Annual
Incentive
Total Estimated
Customer
Incentives
Initial Term 6,600 $600,600 $300,300 $900,900
First Renewal Term 6,600 $600,600 $600,600 $1,201,200
Second Renewal
Term 6,600 $600,600 $900,900 $1,501,500
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CPA shall be solely responsible for funding Customer Payments pursuant to the process stated below; provided, however, that Contractor shall fund fifty percent (50%) of Customer Payments if it is awarded Phase II REDWDS Grant funding pursuant to Paragraph 3.b. of this Agreement, [subject to the availability of funds from the REDWDS Grant]. Upon award of Phase II REDWDS Grant funding, CPA and Contractor shall mutually agree to any required adjustments to the Services to incorporate Contractor’s partial funding of the Customer Payments; provided, however, that the maximum authorized fees for each term shall not be adjusted.
Contractor shall establish a dedicated bank account ("Dedicated Account") that will be solely used for the Prepaid Balance and Customer Payments. The Dedicated Account will be held at a nationally recognized bank opened in the name of EV.ENERGY CORP and called Clean Power Alliance. Contractor will provide monthly bank statements pertaining to the Dedicated Account upon request by CPA. Contractor will invoice CPA a prepayment amount of $100,000 (“Prepaid Balance”) upon execution of the Implementation Plan for eligible customer incentives (“Customer Payments”). Eligibility for purposes of Customer Payments is to be defined by CPA in consultation with Contractor.
Contractor shall submit to CPA on a monthly basis an invoice for any Customer Payments, supporting invoices detailing funds transferred to customers to pay Customer Payments, and other supporting documentation reasonably requested by CPA. Contractor to invoice CPA for (a) any amounts drawn down from the Prepaid Balance; or (b) in the event that the Customer Payments exceed the Prepaid Balance, the full amount of the Prepaid Balance plus the amount of such excess. Notwithstanding anything to the contrary in this agreement, if CPA (i) fails to pay an invoice to replenish the Prepaid Balance as and when due or (ii) otherwise breaches its obligations or defaults under this agreement, then Contractor will have no obligation to pay any Customer Payments unless and until (x) CPA has replenished the full amount of the Prepaid Balance and paid any other amounts due, and (y) any such breach or default has been cured.
Contractor acknowledges and agrees that the funds in the Prepaid Balance are property of CPA, not Contractor, and the transfer of funds to the Prepaid Balance does not constitute a payment from CPA to Contractor; provided that, notwithstanding the foregoing or anything to the contrary in this agreement, (a) ownership of the funds in the Prepaid Balance will transfer from CPA to Contractor on a dollar-for-dollar basis as Customer Payment obligations accrue to Contractor, and (b) until the earlier of (x) the expiration or earlier termination of this agreement and (y) the date when no future Customer Payments are contemplated by this agreement to be paid by Contractor, CPA shall have no right to withdraw funds from the Prepaid Balance.
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Exhibit D – [Intentionally Left Blank]
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Staff Report – Agenda Item 15
To: Board of Directors
From: Gina Goodhill, Senior Director, Government Affairs Approved By: Ted Bardacke, Chief Executive Officer
Subject: Proposition 4
Date: September 5, 2024
RECOMMENDATION
Approve a Support position on Proposition 4, as supported by the Legislative & Regulatory Committee.
BACKGROUND
In the November 2024 General Election, California voters will vote on Proposition 4, the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024. The measure would authorize $10 billion in general obligation bonds for drought, flood, water resilience, wildfire and forest resilience, biodiversity, climate smart agriculture, park and open space, and more.
The $10 billion would be allocated as follows:
• $3.8 billion for drought, flood, and water supply
• $1.5 billion for forest health and wildfire prevention • $1.2 billion for sea-level rise and coastal areas
• $1.2 billion for land conservation and habitat restoration • $850 million for energy infrastructure
• $700 million for park creation and outdoor access programs • $450 million for extreme heat mitigation programs; and Agenda Page 316
Board of Directors Item 15
• $300 million for farms and agriculture
Proposition 4 would also require that 40% of the bond revenue be used to fund activities that benefit communities with lower incomes or that are affected by environmental changes or disasters.
Of these allocations, the most relevant to CPA, as detailed in the authorizing legislation SB 867 (Allen), include:
- Energy Infrastructure ($850 million)
o Transmission Lines: $325 million for clean energy transmission projects necessary to meet the state's clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects.
Preference may be given to projects that provide multiple benefits, including reducing the risk of wildfire, reducing reliance on fossil fuel plants in disadvantaged communities, and reducing rate pressure, including reconductoring and other grid enhancing technologies.
o Battery Storage: $50 million to support the Long-Duration Energy Storage Program, including zero-emission distributed energy backup assets, virtual power plants, and demand side grid support.
o Offshore Wind: $475 million to support various activities related to offshore wind, including construction of port facilities for manufacturing, assembly, staging and integration of wind generation components; and expansion and improvements of port infrastructure to accommodate vessels involved in the installation, maintenance, and operation of offshore wind generation. - Wildfire and Forest Resilience ($1.5 billion)
o Uses to reduce wildfire risk related to electricity transmission: $35 million - Extreme Heat ($450 million)
o Community Resilience: $60 million to the Office of Emergency Services and the Strategic Growth Council for competitive grants for the creation of strategically located community resilience centers across diverse regions of the state at eligible community facilities.
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Board of Directors Item 15
o The remainder of the funding will go to activities to minimize the heat island effect, including urban greening; grants for local communities to conduct activities that provide environmental benefits, such as reducing air pollution; and upgrades to fairgrounds to enhance their abilities to act as a resilience center.
The bond would increase state costs by about $400 million annually for 40 years to repay the bond. It is not known if it would directly impact CPA expenses or CPA customer bills, though analysis by the Legislative Analyst finds that Proposition 4 likely would result in savings to local governments. Per CPA’s 2024 Legislative and Regulatory Policy Platform, the Legislative and Regulatory Committee and Board of Directors must review and approve any policy position that would raise taxes. Given the long-term impact on the state’s general fund and the legal requirements surrounding public agencies taking positions on ballot measures (see below), staff believes that for CPA to take a position on Proposition 4, the full Board needs to make that decision.
Local public agencies such as CPA may take a position at a public meeting on a ballot measure. After that, they may provide accurate, factual and impartial information to the public about a ballot measure. Regardless of the position they take, public agencies may not expressly advocate for a “yes” or “no” vote on the measure or disseminate information that urges a particular vote.1 Importantly, public resources cannot be used for ballot measure campaign activities but can be used for information activities. Campaign activities support or oppose a ballot measure, while information activities provide accurate context and facts about a ballot measure to voters.
Proposition 4 is currently supported by a diverse array of groups including:
• American Clean Power – California
• Associated General Contractors of California
• Bay Area Council
1 Institute for Local Government, “Ballot Measures and Public Agencies.” www.ca-ilg.org/sites/main/files/file-attachments/ballot_measures_and_public_agencies.pdf
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Board of Directors Item 15
• CAL FIRE Firefighters
• California Council of Land Trusts
• California Federation of Labor Unions
• California State Park Rangers Association
• California State Parks Foundation
• California Professional Firefighters
• California Teachers Association
• California Water Association
• City of Long Beach
• Clean Water Action
• Coalition for Clean Air
• League of California Cities
• League of Women Voters of California
• Peace Officers Research Association of California
• Resources Legacy Fund
• San Diego County Water Authority
• Save the Redwoods League
• Silicon Valley Leadership Group
• The Nature Conservancy
• Trust for Public Land
Proposition 4 is opposed by the Howard Jarvis Taxpayers Association. A few CCAs – Ava, Silicon Valley Clean Energy, and San Jose Clean Energy – are considering a support position. Most other CCAs are declining to take a position given the legal restrictions.
DISCUSSION
CPA closely tracked the authorizing legislation for this bond measure, SB 867 (Allen), and educated legislators about the importance of focusing funding on measures that could reduce ratepayer costs, including electricity infrastructure, transmission, and wildfire mitigation. CPA and others were largely unsuccessful in focusing the authorizing
Agenda Page 319
Board of Directors Item 15
legislation on building energy infrastructure that would ultimately slow the momentum of rising customer rates.
Proposition 4 aligns with CPA’s 2024 Legislative and Regulatory Policy Platform, specifically principles 2e, 2f, 3d, 5a, 5c, and 5d.
PROCESS
On August 28, 2024, the Legislative and Regulatory Committee met to discuss Proposition 4. The Committee reached a consensus recommending support for this Proposition.
ATTACHMENTS
1. 2024 Legislative and Regulatory Policy Platform
Agenda Page 320
2024 Legislative and Regulatory Policy Platform
Overview and Purpose
The Clean Power Alliance (CPA) Legislative and Regulatory Policy Platform (Platform) serves as a guide to the CPA Board of Directors and CPA staff in their advocacy efforts and engagement on policy matters of interest to CPA. The Platform allows both members of the CPA Board of Directors and CPA staff to pursue actions at the regional, state and federal legislative and regulatory levels in a consistent manner and with the understanding that they are pursuing actions in the best interest of the organization and its mission, its member agencies, and its customers.
The Platform provides direction to CPA staff on positions that should be taken on regulatory matters and legislative bill proposals. The Platform also provides guidance to the Chief Executive Officer on positions that should be taken on legislative and regulatory matters that come before the California Community Choice Association (CalCCA) Board of Directors.
CPA staff report to the Board monthly on all positions taken on legislative bills. For bills that fall outside the scope of this platform; bills that are likely to attract high-profile supporters and detractors, including bills that would modify the California Environmental Quality Act (CEQA); bills that would raise taxes; or bills that would knowingly put CPA at odds with positions that its member agencies have taken, CPA staff will seek approval of a proposed position to the Legislative & Regulatory Committee and Board of Directors before taking a position.
Policy Principles
The Legislative and Regulatory Policy Platform is centered around five basic principles:
1. Protecting CPA’s local control and competitive position, especially as it relates to rates, finances, power procurement and expansion of its service territory.
2. Pursing power resource planning and procurement that promotes the growth in renewable energy capacity at the local level and reduce fossil fuel dependency, with the goal of combating climate change.
3. Developing and administering customer programs that encourage clean energy adoption by CPA customers.
4. Ensuring fair access to data, particularly as it relates to energy usage, billing, and information needed to develop and administer customer programs.
5. Supporting CPA’s ability to set electric rates and offer programmatic services that are affordable and inclusive for all.
These principles are incorporated throughout the below platform.
Agenda Page 321
Policy Platform
1. Affordability and Local Control
a. Fair rates and cost allocation: CPA will pursue administrative and legislative initiatives that will ensure that non-bypassable charges for CPA customers, including any income-graduated fixed charges, are assessed fairly compared to unbundled customers and that CPA’s customers are not unnecessarily burdened by non-bypassable charges compared to unbundled customers. b. Finances: CPA will pursue administrative and legislative initiatives to ensure that CPA is eligible to apply and receive funding made available to the electricity sector for decarbonization, reliability, and affordability purposes, and that CPA’s financial health are not disparately impacted by new regulations.
c. CCA Expansion: CPA will pursue administrative and legislative initiatives to protect CPA’s ability to expand its service to new member agencies. d. Local Control: CPA will pursue administrative and legislative initiatives to protect CPA Board’s authority over CPA’s procurement, rate-setting, governance, and customer program development activities.
2. Power Resources Planning and Procurement
a. Resource Adequacy and Reliability: CPA will pursue administrative and legislative initiatives that will enable CPA to secure capacity resources to meet its reliability obligations, such as initiatives that evaluate the supply of capacity resources available to load serving entities (LSEs), determine the appropriate market mechanisms for LSEs to procure capacity resources, and develop a durable policy framework that encourages all LSEs to construct their fair share of new capacity resources to maintain grid reliability while pursuing decarbonization efforts. b. Carbon-Free Resources: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to procure carbon-free resources to meet or exceed the needs of CPA’s three product offerings and its long-term carbon-free procurement goal as required by SB 100 and other statutory or regulatory obligations. c. Renewable Resources: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to procure eligible Renewable Portfolio Standard (RPS) resources to meet the needs of CPA’s three product offerings and its long-term RPS procurement goal as required by SB 100 and other statutory or regulatory obligations.
d. Integrated Resource Plan: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to plan and procure resources to meet various environmental and reliability goals set by state laws and by its Board of Directors, while offering affordable products and programs to serve its customers, including disadvantaged communities.
e. Transmission: CPA will pursue administrative and legislative initiatives that will expedite new transmission infrastructure needed to meet California’s climate goals, as well as initiatives that will provide CPA adequate access to transmission capacity to maximize its procurement of RPS-eligible or carbon-free resources that meet various statutory and regulatory requirements.
f. Research & Development: CPA will pursue administrative and legislative initiatives that support the research and development of new energy resources that can be procured to meet the reliability and decarbonization goals set by the State and its Board of Directors.
Agenda Page 322
g. Grid Reliability: CPA will pursue administrative and legislative initiatives that support the expansion of a regional grid that improves reliability; accelerates decarbonization; improves transmission planning; reduces costs for ratepayer and load serving entities; maintains California’s ability to set, meet and implement its own climate goals; and protects clean energy jobs within the State.
3. Customer Programs
a. Demand Response, Demand Flexibility and Energy Efficiency: CPA will pursue administrative and legislative initiatives that will enable CPA to pursue demand response programs and opportunities for its customers.
b. Zero-emission vehicles: CPA will pursue administrative and legislative initiatives to promote electrification of the transportation sector in response to state and federal goals aimed at increasing the usage of zero emission vehicles. c. Building decarbonization: CPA will pursue administrative and legislative initiatives that support the ability of CPA to promote statewide building decarbonization, primarily through electrification.
d. Local Grid Management and Resiliency: CPA will pursue administrative and legislative initiatives that supports the ability of CPA and its member agencies to offer local grid management and resiliency solutions to increase local reliability and adaptability that could protect against power outages and extreme heat. e. Distributed Energy Resources: CPA will pursue administrative and legislative initiatives that support the ability of CPA to offer and utilize distributed energy resources as part of its reliability, resiliency and community engagement strategies. f. Research and Development: CPA will pursue administrative and legislative initiatives that support the ability of CPA to explore new opportunities related to behind the meter clean energy resources.
4. Data Access
a. Timely and Accurate Access to Customer Data: CPA will pursue administrative and legislative initiatives that will enable CPA to obtain timely and accurate access to its customers’ data to improve billing accuracy and inform the development and implementation of customer programs.
b. Fair Fees for Data Management Services: CPA will pursue administrative and legislative initiatives to ensure that the fees due to Southern California Edison for data access and management are fairly assessed based on data needs and potential technological improvements.
5. Diversity, Equity, Inclusion
a. Customer Protection: CPA will pursue administrative and legislative initiatives that support the protection of all ratepayers, particularly environmental and social justice communities in CPA’s service territory.
b. Supplier Diversity: CPA will pursue administrative and legislative initiatives that supports supplier diversity in CPA’s contracting activities and through women-owned, minority-owned, disabled-veteran-owned, and lesbian, gay, bisexual, and/or transgender owned business enterprises.
c. Workforce Development: CPA will pursue administrative and legislative initiatives that support workforce development with a focus on new stable, well-paying local jobs, and participation in a just transition to a low-carbon economy.
Agenda Page 323
d. Energy Equity: CPA will pursue administrative and legislative initiatives that supports increased access to clean energy technologies, clean energy and contracting jobs, and clean energy opportunities for environmental and social justice communities in CPA’s service territory.
e. Access to the Electrical Grid: CPA will pursue administrative and legislative initiatives that support reducing timelines in interconnection and service extensions for new construction, critical services, renewable energy, building decarbonization, and other projects in CPA’s service territory.
Agenda Page 324
Management Report
To: Board of Directors
From: Ted Bardacke, Chief Executive Officer
Subject: Management Report
Date: September 5, 2024
Website Updates
Two important customer-facing updates to CPA’s website debuted over the summer. • A revised “Understanding Your Bill” page was published that should help customers distinguish between CPA charges and SCE charges. The revisions also include an updated version of CPA’s two-page line-by-line Understanding Your Bill fact sheet.
• A comprehensive “Customer Programs” overview page is now available. The page has specific buttons to filter between the different programs available for residential, commercial, and member agencies.
Much of this information is also available on the password-protected member agency portal that debuted in June. More than half of CPA’s member agencies have accessed this portal since it launched. Contact your CPA Government Affairs representative (Kendal Asuncion, Joseph Cabral, or Dalia Gomez) if you need assistance accessing the portal.
Reach Code Program to Sunset in 2025
CPA’s Reach Code Program assists member agencies to evaluate and adopt building electrification codes that improve indoor air quality, increase electric vehicle (EV) charging infrastructure, and reduce harmful greenhouse gas emissions. Currently two member agencies are participating in the new construction program and three are participating in the existing building pilot; at least three other member agencies are actively considering signing up for the program.
Agenda Page 325
Board of Directors Management Report
Due to plans by state and regional regulatory agencies to phase out the sale of most gas-fired water heaters and furnaces (which account for approximately 80% of natural gas use in residential buildings) over the next several years, it is expected that Reach Codes will only be effective as a significant greenhouse gas reduction measure for one more three-year building code cycle.
As a result, CPA plans to close the program at the end of 2025. All member agencies currently participating in the program will continue to receive the technical and financial support offered by the program through the end of next year. Any new communities that wish to sign up for the program need to inform CPA of their intention to participate by November 22, 2024, and have executed a participation agreement by February 28, 2025.
For more information or to express interest in the program, contact Electrification Program Manager Xico Manarolla.
Monthly Financial Performance
In May 2024 CPA recorded an operating gain of $32.9 million, $5.4 million less than the budgeted operating gain of $38.4 million. Both energy revenues and energy costs were lower than expected due to cooler than forecasted weather. CPA continues to benefit from operating expenses that are lower than budgeted, 30% less than budget for May and 25% under budget for the first 11 months of the year. The monthly financial dashboard for May is included as Attachment 1.
For the first 11 months of the fiscal year, CPA has contributed $186.2 million to its net position. With preliminary results for June that are on budget, CPA expects to have contributed between $225 million and $240 million to its net position in the past fiscal year. Audited financial results for the full fiscal year 2023/24 are scheduled to be published in October.
Customer Participation Rate and Opt Actions
As of August 27, 2024, CPA’s overall participation rate was 93%, unchanged from the previous month. CPA had 1,043,388 active customers on this date, up 1,389 customers compared to the end of June. Opt-out for the month – 1,078 accounts through the fourth week of August – was up from previous months and higher than typical for summer months. The increase in opt-outs was likely driven by higher-than-expected monthly bills Agenda Page 326
Board of Directors Management Report
following an SCE rate increase in June, combined with negative social media activity in a couple of CPA communities. New accounts (“move-ins”) were lower than closed accounts (“move-outs”) by 375 customers in August. Participation rates and active accounts by jurisdiction are provided in Attachment 2 of this report.
Customer Service Center Performance
Incoming calls to CPA’s Customer Service Center were up in August, consistent with increased customer account activity. Through August 27, CPA received 4,313 calls in the month compared to 3,510 calls in July and an average of 2,449 calls per month in the previous quarter. Call center performance declined, with 87% of calls answered within 45 seconds compared to 94% in the previous and an average wait time of 20 seconds, up from 12 seconds in the previous month.
Contracts and Amendments Executed Under the CEO Authority A list of amendments to, and terminations of, Long-Term Power Purchase Agreements and Energy Storage Agreements executed under the CEO’s signing authority since July 2024 is provided in Attachment 3. This is a new item provided pursuant to amendments to CPA’s Energy Risk Management Policy approved by the Board on July 11, 2024; this list will be updated monthly on a rolling 12-month basis. A list of non-energy contracts executed under the CEO’s signing authority is provided in Attachment 4. This list includes all open contracts as well as all contracts, open or completed, executed in the past 12 months.
ATTACHMENTS
1. Monthly Financial Dashboard
2. Participation Rates by Jurisdiction
3. Long Term PPA/ESA Amendments Executed under CEO’s Authority
4. Non-Energy Contracts Executed under CEO’s Authority
Agenda Page 327
CUSTOMERS
Summary of Financial Results
Definitions:
Accounts: Active Accounts represents customer accounts of active customers served by CPA per Calpine Invoice.
Participation Rate %: Participation Rate represents active accounts divided by eligible CPA accounts YTD Sales Volume: Year-to-date sales volume represents the amount of energy (in gigawatt hours) sold to retail customers Revenues: Retail energy sales less allowance for doubtful accounts Cost of energy: Cost of energy includes direct costs incurred to serve CPA’s load Operating expenses: Operating expenditures include general, administrative, consulting, payroll, and other costs required to fund operations Net operating income represents the difference between revenues and expenditures before interest income and expense, and capital expenditures
Cash and Cash Equivalents: Includes bank accounts and marketable securities with maturities of less than 90 days.
Year to date (YTD): Represents the fiscal period beginning July 1, 2023 YTD
May
2024
Financial Dashboard
Note: Numbers may not sum up due to rounding.
Active Accounts
1,042,196
Participation Rate
93.1%
YTD Sales Volume
9,667 GWh
May Volume
775 GWh
Agr/Oth Com-Lg
23%
Com-Sm
32%
Res
43%
In May 2024 CPA recorded an operating gain of $32.9 million, $5.4 million or 14% less than the budgeted operating gain of $38.4 million. May 2024 results include a $2.8 million charge from the California Independent Systems Operator arising from market activity in September 2022. Absent this prior period charge, CPA would have recorded an operating gain of $35.7 million, $2.6 million or 7% below budget.
May 2024 revenues were $103.9 million, $11.7 million or 10% lower than FY 2023/24 budget resulting largely from cooler than normal weather in CPA's service area. May cost of energy was $67.3 million, $4.7 million or 7% lower than the FY 2023/24 budget. For the year-to-date CPA recorded operating income of $186.2 million, $53.1 million or 22% below budget of $239.3 million. CPA’s year to date financial results were negatively impacted by abnormal weather for much of the first half of the FY 2023/24, cooler than normal spring 2024 temperatures, and an increase in the 2023 Market Price Benchmark promulgated by CPUC in early October 2023 which increased certain renewable energy costs. Operating costs were 25% below budget year-to-date due to lower than budgeted spending on general and administrative expenses, customer programs and other services, and the non-utilization of contingencies. Total non-operating revenues, comprised primarily of interest earnings, were $8.8 million, $6.5 million above budget.
As of May 31st, 2024, CPA had unrestricted cash, cash equivalents, and investments of $379.1 million, and $159.853 million available in its bank line of credit representing 156 Days Liquidity on Hand. CPA is financially sound and in compliance with its bank and other credit covenants.
Agenda Page 328
Preferred Energy Option Participation %
100% Green 92.9%
Clean 94.2%
Lean 91.6%
Total 93.0%
OVERALL CUSTOMER STATUS REPORT
PARTICIPATION BY CITY AND COUNTY
August 27, 2024
Preferred Energy Option Active Accounts Participation % Lean % Clean % 100% Green % Agoura Hills 100% Green 8,032 89.5% 3.1% 0.4% 96.5%
Alhambra 100% Green 34,159 95.1% 1.9% 0.7% 97.4%
Arcadia Lean 22,703 95.4% 99.8% 0.1% 0.2%
Beverly Hills 100% Green 18,657 97.2% 2.1% 0.1% 97.8%
Calabasas 100% Green 9,657 93.5% 3.0% 0.3% 96.7%
Camarillo 100% Green 28,631 89.8% 1.8% 0.1% 98.0%
Carson Clean 29,483 95.9% 1.5% 98.3% 0.2%
Claremont 100% Green 12,721 91.3% 3.2% 0.3% 96.6%
Culver City 100% Green 19,217 95.0% 4.2% 1.2% 94.7%
Downey Clean 36,888 95.0% 1.7% 98.2% 0.1%
Hawaiian Gardens Clean 3,645 95.3% 1.3% 98.4% 0.3%
Hawthorne 100% Green 28,511 97.1% 0.8% 1.4% 97.9%
Hermosa Beach 100% Green 9,786 93.4% 2.6% 0.6% 96.8%
Los Angeles County 100% Green 299,591 94.5% 2.3% 31.6% 66.1% Malibu 100% Green 7,019 95.1% 3.0% 0.4% 96.5%
Manhattan Beach 100% Green 15,336 95.5% 3.0% 0.3% 96.7% Monrovia 100% Green 15,621 91.5% 3.4% 0.5% 96.2%
Moorpark Clean 11,424 85.6% 3.2% 96.2% 0.6%
Ojai 100% Green 3,494 89.1% 6.4% 1.2% 92.4%
Oxnard 100% Green 55,782 92.8% 4.0% 0.9% 95.2%
Paramount Clean 15,783 96.6% 0.3% 99.1% 0.6%
Redondo Beach 100% Green 33,303 96.1% 2.4% 0.1% 97.5%
Rolling Hills Estates 100% Green 3,522 91.9% 7.9% 1.7% 90.4% Santa Monica 100% Green 55,246 94.6% 3.4% 0.8% 95.8%
Santa Paula 100% Green 8,905 91.8% 2.1% 0.2% 97.7%
Sierra Madre 100% Green 4,946 92.0% 5.8% 1.5% 92.7%
Simi Valley Lean 43,352 89.0% 99.6% 0.1% 0.2%
South Pasadena 100% Green 11,610 94.8% 3.9% 0.7% 95.4%
Temple City Lean 12,674 95.7% 99.8% 0.1% 0.2%
Thousand Oaks 100% Green 44,525 83.7% 8.1% 1.5% 90.5%
Ventura 100% Green 44,560 89.1% 4.8% 1.5% 93.7%
Ventura County 100% Green 32,963 84.7% 6.8% 1.2% 92.1%
West Hollywood 100% Green 26,543 97.0% 2.6% 0.4% 97.1%
Westlake Village Lean 3,735 88.4% 99.4% 0.1% 0.5%
Whittier Clean 31,364 93.9% 2.0% 97.8% 0.2%
Total 1,043,388 93.0%
Energy Option Active Accounts Participation %
100% Green 707,214 67.8%
Clean 225,105 21.6%
Lean 111,069 10.6%
Total 1,043,388 100.0%
OVERALL PARTICIPATION BY ENERGY OPTION
Agenda Page 329
Project Purpose Month Notes
Desert Sands II
Amendment to a Letter Agreement to the Energy Storage
Agreement to extend the termination deadline while parties identify mutually beneficial solutions
August 2024
Workman Mill Termination of the Power Purchase Agreement for failure of Seller to meet contractual deadlines July 2024
Dinuba Biomass Termination of the Power Purchase Agreement for failure of Seller to meet contractual deadlines July 2024
Drifter
Amendment to Energy Storage Agreement to extend the
termination deadline while parties identify mutually
beneficial solutions
July 2024
Long-Term Energy Contracts Administrative Amendments, Letter Agreements and Terminations Executed Under Chief Executive Officer's Authority
Agenda Page 330
Vendor Purpose Month NTE Amount Status Notes
Helpmates HR temporary staffing services Aug-24 $24,000 Active Workable HR recruitiung paltform subscrption Aug-24 $14,028 Active DataCamp Training subscription for Data &
Systems team Aug-24 $1,200 Active
TRC Amendment to PSA for reach code
technical consulting Aug-24 $43,000 Active
Salesforce Stakeholder relationship management
application subscription Aug-24 $15,300 Active Renewal
Abbott, Stringham & Lynch Data security complaince services Jul-24 $18,500 Active Mellady Direct Marketing Print and mailing services Jul-24 $0 Active PSA end date extension only
to contract approved by the
Board of Directors on 9/3/21
ProductOfLA Interactive renewable energy model Jul-24 $30,000 Active LinkedIn LinkedIn Learning subscription Jul-24 $16,150 Active Hall Energy Law PC Energy procurement counsel Jul-24 $125,000 Active Renewal Burke, Williams, Sorenson, LLP
Legal Services Agreement (Brown Act,
public entity governance issues, and
other legal services)
Jul-24 $100,000 Active Renewal
Elite Edge Financial reporting services Jul-24 $93,600 Active Renewal SAESHE, Inc. Street teams support services Jun-24 $60,000 Active Snowflake Data cloud services Jun-24 $25,000 Active
Lazar Translating & Interpreting Translation services Jun-24 $50,000 Active Great Place to Work Institute Staff survey & certification platform May-24 $3,495 Active Abbot, Stringham & Lynch Power Source Disclosure audit services Apr-24 $56,400 Active Adapt2
Settlements Software PSA amendment
(updating payment dates only) Apr-24 $0 Active
Langan GIS services (end date extension only) Mar-24 $0 Closed Viridis Consulting Customer Programs support services Feb-24 $0 Closed PSA end date extension only to
contract approved by the Board
of Directors on 9/7/23
First Principle Advisory IRP consulting services Feb-24 $50,000 Active Sagon Phior Social media creative services Feb-24 $50,000 Closed Posit Software Resource adequacy software Jan-24 $15,745 Active Salesforce Tableau subscription Jan-24 $6,499 Active
Ironclad Contract management platform
updates
Jan-24 $11,886 Active
Jackson Lewis PC Legal services (employment law) Jan-24 $65,000 Active Verve Cloud Internet service Jan-24 $20,988 Active
Wrike Project management software Jan-24 $9,024 Active
Ironclad Contract management platform Jan-24 $41,750 Active Practising Law Institute Legal continuing education Jan-24 $13,940 Active Pinnacle Advocacy Renewal and amendment to lobbying
services agreement
Jan-24 $76,652 Active
Omni Government Relations Renewal and amendment to lobbying services agreement
Jan-24 $102,492 Active
SAESHE, Inc. Outreach support services Jan-24 $25,500 Closed Wellable Employee wellness platform Jan-24 $10,975 Active Electric & Gas Industries
Association
Battery storage incentive rebate
processing and program management
Jan-24 $110,000 Active
San Gabriel Valley COG Outreach & engagement services Dec-23 $15,000 Active Spirit Media Video production services Dec-23 $20,000 Closed Intelligence Press Natural gas data subscription Dec-23 $6,500 Active Non-Energy Contracts Executed Under Chief Executive Officer Authority Rolling 12 months. Open contracts shown in bold.
Agenda Page 331
S&P Global Economic & demographic data
subscription
Dec-23 $15,000 Active
Joanalyn Moyle Minute writing services Dec-23 $15,000 Active Chapman and Cutler Legal services for prepay transaction Nov-23 $40,000 Active Place and Page Graphic design services Nov-23 $12,000 Closed Jorgensen HR HR consulting services Nov-23 $1,500 Active Language Line Translation services Nov-23 $24,000 Closed Energy Exemplar Additional license for forecasting
software
Nov-23 $9,720 Active
Cathleen Murillo Minute writing services Nov-23 $15,000 Active Meltwater Media intelligence services Nov-23 $22,000 Active Crown Castle Fiber LLC
Office dedicated internet access
service
Nov-23 $18,600 Active
SAESHE, Inc. Event support for Street Teams Oct-23 $7,800 Closed Grand Tower LLC Storage space lease Sep-23 $6,000 Active Windstream Services, LLC Office telephone service Sep-23 $12,924 Active Sigma Computing Analytics platform Sep-23 $35,612 Active SBCCOG Satellite Board meeting venue Jan-23 $50/hr Active OpenPath Office keycard access control system Jan-21 $1,500 Active
Agenda Page 332