Clean Power Alliance Board of Directors
November 7, 2024

Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, November 7, 2024
2:00 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
Diana Mahmud Board Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting at the following locations:

Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91301
Ventura County Government Center
Point Mugu 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
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 Board 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 consolidated into one public comment period. Members of the public who wish to address the Board 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 PLEDGE OF ALLEGIANCE

ROLL CALL

GENERAL PUBLIC COMMENT

CONSENT AGENDA

1. Approve Minutes from the October 10, 2024, Board of Directors Regular Meeting

2. Approve an Increase in the Contract Authority of the Professional Services Agreement (PSA) for FY 2024/25 with Pastilla, Inc. by $656,600 for a Total Not-To-Exceed (NTE) Amount of $1.02 Million for Creative Services, Web Development, and Web Maintenance and Authorize the Chief Executive Officer to Execute the Amendment with Pastilla for the Increased Amount

3. Adopt Resolution No. 24-11-076 to Approve Certain Corrected Rates for Phase 1, 2, 4, 5 & 6 Non-Residential Customers Effective on November 8, 2024

4. Receive and File Monthly Community Advisory Committee Report

REGULAR AGENDA
Action Item

5. Approve the Clean Energy Workforce Development Investment Plan Phase 3 with Total Funding in the Amount of $1,323,000 Consisting of:
(A) Memoranda of Understanding (MOU) for a 3-Year Term with (i) Flintridge Center in the Total Amount of $435,000 and (ii) Women in Non-Traditional Employment Roles (WINTER) in the Total Amount of $558,000; (B) Updates or Establishment of Voyager Scholarship Agreements with up to Eleven (11) Community Colleges for a Total Amount of $330,000 Over a 2- Year Term
Information Item

6. Receive Presentation on CPA’s Financial Results for Fiscal Year 2023-2024 and Fiscal Year Budget to Actual Report

7. Receive Presentation on 2025 Power Charge Indifference Adjustment and Rates Outlook
Election

8. Open Nomination for Executive Committee Ventura County At-Large Position for the Remainder of the Term ending June 30, 2026.

COMMITTEE CHAIR UPDATES
Director Cedric Hicks, Chair, Legislative & Regulatory Committee Director Susan Santangelo, Chair, Finance Committee
Director Robert Parkhurst, Chair, Energy Planning & Resources Committee

MANAGEMENT REPORT

BOARD MEMBER COMMENTS

REPORT FROM THE CHAIR
ADJOURN – NEXT REGULAR MEETING DECEMBER 5, 2024
Public Records: Public records that relate to any item on the open session agenda for a regular Board 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 Board. 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.

Commonly Used Acronyms
BESS Battery Energy Storage System
CAC Community Advisory Committee
CAISO California Independent System Operator
CALCCA California Community Choice Association
CalEVIP California Electric Vehicle Incentive Program
CARB California Air Resources Board
CARE California Alternate Rates for Energy (Low Income Discount Rate) CCA Community Choice Aggregation
CEC California Energy Commission
CPUC California Public Utilities Commission
DA Direct Access (Private Retail Energy Supplier)
DAC Disadvantaged Community (As Defined by Calenviroscreen 3.0) DER Distributed Energy Resources
DR Demand Response
ERMP Energy Risk Management Policy
ERRA Energy Resource Recovery Account (SCE Generation Rate Setting)
ESA Energy Storage Agreement
EVSE Electric Vehicle Supply Equipment (EV Charger)
FERA Family Electric Rate Assistance (Low Income Discount Rate) GHG Greenhouse Gas
IOU Investor Owned Utility
IRP Integrated Resource Plan
JPA Joint Powers Authority

Commonly Used Acronyms
Kwh Kilowatt-Hour (A Measure of Energy Used in A One-Hour Period) Kw Kilowatt = 1,000 Watts (Watt = A Measure of Instantaneous Power) LSE Load Serving Entity
MB Medical Baseline (Discount Rate for Medical Equipment Needs) MW Megawatt = 1,000 Kilowatts
Mwh Megawatt-Hour = 1,000 Kilowatt-Hours
NEM Net Energy Metering (Usually for Customers with Solar) OAT Other Applicable Tariffs
PCIA Power Charge Indifference Adjustment (Can Be Called “Exit Fee”) PCC1 Renewable Energy Generated Inside California
PCC2 Renewable Energy Generated Outside California
PCC3 A REC from A Renewable Resource, Delivered Without Energy PCL Power Content Label
POU Publicly Owned or Municipal Utility
PPA Power Purchase Agreement
PSPS Public Safety Power Shutoff
PV Photovoltaic (Solar) Panels
RA Resource Adequacy
REC Renewable Energy Credit
RPS Renewables Portfolio Standard
T&D Transmission and Distribution
TOU Time Of Use (Used to Refer to Rates that Differ by Time Of Day) WECC Western Electricity Coordinating Council

To: Board of Directors
Subject: Approve Minutes from the October 10, 2024, Board of Directors Meeting
Date: November 7, 2024

RECOMMENDATION
Approve.

ATTACHMENT

1. Minutes
Staff Report – Agenda Item 1

MINUTES
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, October 10, 2024, 2:00 p.m.

Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Board members participated from the following locations:

Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91301
Clean Power Alliance
Diana Mahmud Board Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Whittier City Hall
Admin Conference Room
13230 Penn Street
Whittier, CA 90602
Ventura County Government Center
Point Mugu Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501

CALL TO ORDER & ROLL CALL
Chair Klein Lopez called the meeting to order at 2:00 p.m. and Gabriela Monzon, Clerk of the Board, conducted roll call.

PLEDGE OF ALLEGIANCE
Director Parkhurst led the pledge of allegiance
Roll Call
1 Agoura Hills Deborah Klein Lopez Chair Present
2 Alhambra Absent
3 Arcadia Michael Cao Alternate Present
4 Beverly Hills Julian Gold Alternate Present
5 Calabasas Ed Albrecht Director Remote
6 Camarillo Absent
7 Carson Cedric Hicks Director Remote
8 Claremont Corey Calaycay Director Present
9 Culver City Yasmine-Imani
McMorrin Director Present
Board of Directors Item 1

10 Downey Absent
11 Hawaiian Gardens Absent
12 Hawthorne Alex Monteiro Director Present
13 Hermosa Beach Justin Massey Director Present
14 Los Angeles County Rita Kampalath Alternate Present
15 Malibu Absent
16 Manhattan Beach David Lesser Alternate Remote
17 Monrovia Absent
18 Moorpark Renee Delgado Director Remote
19 Ojai Michelle Ellison Alternate Remote
20 Oxnard Bert Perello Director Remote
21 Paramount Michelle Muller Alternate Remote
22 Redondo Beach Absent
23 Rolling Hills Estates Jeannie Naughton Alternate Remote 24 Santa Monica Absent
25 Santa Paula Jenny Crosswhite Director Remote
26 Sierra Madre Robert Parkhurst Director Present
27 Simi Valley Rocky Rhodes Director Remote
28 South Pasadena Jon Primuth Director Present
29 Temple City Absent
30 Thousand Oaks David Newman Director Remote
31 City of Ventura Absent
32 Ventura County Vianey Lopez Vice Chair Remote
33 West Hollywood Chelsea L. Byers Alternate Present
34 Westlake Village Absent
35 Whittier Mary Ann Pacheco Director Remote
All votes are unanimous unless otherwise stated.

GENERAL PUBLIC COMMENT
There was no public comment.

Board of Directors Item 1

CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: 1
Nancy Whang, General Counsel, stated that no reportable action was taken.

CONSENT AGENDA

2. Approve Minutes from the September 5, 2024, Board of Directors Regular Meeting

3. Approve Appointment of One New Member to the Community Advisory Committee for the Open Position in East Ventura/West L.A. County Region for a May 2024 –April 2026 Term

4. Approve the Amended and Restated Power Purchase Agreement with SunZia Wind PowerCo LLC and Authorize the Chief Executive Officer to Execute the Agreement

5. Receive and File Bill Positions October 2024 Monthly Report

6. Receive and File Monthly Community Advisory Committee Report Director Perello pulled Item No. 3 and received clarification from staff and Director Newman about an applicant's job title for the Community Advisory Committee.

Motion: Director Gold, Beverly Hills
Second: Director Byers, West Hollywood
Vote: Consent agenda Item Nos. 2 and 4-6 were approved by roll call vote Motion: Director Parkhurst, Sierra Madre
Second: Director Gold, Beverly Hills
Vote: Consent agenda Item No. 3 was approved by roll call vote

REGULAR AGENDA
Action Item

7. Adopt Resolution No. 24-10-075 to Approve Amendments to the Non-Energy Contracting Policy
Scott Gropp, Strategic Sourcing Manager, presented the non-energy contracting policy adopted by the Board in 2019 and the suggested amendments. Mr. Gropp also reviewed the CEO’s delegated expenditure authority, currently at $125,000, and proposed to increase it to $250,000 for any single contract in a 12-month period or for any single vendor within a single fiscal year. Further, Mr. Gropp described the solicitation categories for goods and services within the contracting policy and the changes to the expenditure authority triggering the various solicitation categories and presented comparison figures of other CCAs and government agencies.

Director Massey inquired about what goods would be purchased with the increase in the expenditure amount that triggers a solicitation. Staff responded that CPA purchases more services than goods, and examples of goods would be items such as printing and mailing CPA’s enrollment notices and computer equipment.

Motion: Director Gold, Beverly Hills
Second: Director Byers, West Hollywood
Vote: Item No. 7 was approved by a roll call vote
Board of Directors Item 1

Information Item

8. Receive Presentation on Energy Team & Efficient Cooling for Low-Income Customers
Joanne O'Neill, Director of Customer Programs, provided an update on the Energy Team program and shared that the California Energy Commission (CEC) announced the initial deployment of funds under the Inflation Reduction Act for home electrification, which could help CPA customers. The Energy Team program provides personalized energy solutions for efficiency and electrification for residential and business customers. Staff will conduct assessments and provide personalized technical assistance and information about contractors, rebates, tax credits, maximizing electrical panel capacity, and other CPA programs.

Customers are encouraged to visit CPA’s website and complete a Welcome Form; however, they can also call, email, or use the chat feature to communicate with staff. Ms. O’Neill encouraged Board members to familiarize themselves with the Energy Team factsheet and speak to their communities about the new resource.

Regarding the Efficient Cooling for Low-Income Customers program, Ms. O’Neill recapped that earlier this year, CPA and Los Angeles County agreed to bring CARE customers to CPA’s 100% Green rate product by 2027, freeing approximately $6 million to increase access to energy-efficient air conditioning.

Energy-efficient air conditioning improves public health, creates cost savings, and responds to extreme heat caused by climate change. This program will offer consumers instant rebates, technical assistance, and incentives for property owners. In partnership with Golden State Rebates, the program gives customers a $300 point-of-sale discount. CPA’s allocation of $3.3 million is expected to incentivize 15,000 new room/window air conditioners.

In response to Director Parkhurst’s question about rebates, staff stated that the Inflation Reduction Act provides grants ranging from $1,000 to $8,500 for electrification and that CPA’s vendors will know all available rebate sources and information about tax credits. Director Massey expressed concern that putting more air conditioners into service would add to greenhouse gas emissions and may run counter to CPA’s mission and asked that marketing be focused on low-income customers who receive 100% Green Power. Staff responded that CPA has some of the cleanest energy in the nation and that property owners would be informed about passive alternatives to air conditioning, such as cool roofs and better insulation. Mr. Bardacke added that most rebates are used to replace older inefficient room air conditioners with Energy Star units, reducing electricity usage.

Director Kampalath stated that Los Angeles County found that extreme heat resulted in increased ER visits, fatalities, and violent offenses in low-income communities.

Director Monteiro asked staff to create outreach materials that are clear about the income restrictions, and Director Crosswhite encouraged staff to find ways for the Energy Team to work with seniors and others who are challenged using computers or smartphones. Director Ellison shared her home electrification experience and expressed satisfaction that this program would help people find contractors and rebates.

Board of Directors Item 1

COMMITTEE CHAIR UPDATES
Director Parkhurst, Chair of the Energy Committee, reported on the results of the 2024 RFO, stating that six projects were placed on the shortlist and another six on the waitlist.

Director Parkhurst also reported on his recent visit to the SunZia project site and described the process of converting AC to DC.

MANAGEMENT REPORT
Ted Bardacke, Chief Executive Officer, noted that CPA is the top green energy supplier in the nation for the second year. Mr. Bardacke acknowledged the city of Columbus, Ohio, for its success in launching a CCA and stated that CPA sets an example for new CCAs throughout the country. Additionally, CPA hired a federal lobbyist with the goal of getting tax dollars back to local communities, and Gina Goodhill, Senior Director of Government Affairs, was in Washington, D.C., meeting with members of Congress. CPA successfully issued its third prepay bond transaction, and the three issued so far amount to a savings of $25 million per year on renewable energy purchases.

Mr. Bardacke elaborated on SCE’s rates and how they affect bill comparisons with CPA.

SCE had a one-time, temporary 12 percent rate reduction noting that these true-ups can affect CPA’s rate competitiveness, even though the changes do not impact CPA customers. CPA decided not to chase rates to avoid these kinds of fluctuations. However, changes in the PCIA, scheduled for the first quarter of 2025, will impact CPA customers and that the Board will receive a presentation about those potential impacts at the November meeting.

BOARD MEMBER COMMENTS
None

REPORT FROM THE CHAIR
Chair Klein Lopez echoed Director Parker’s positive remarks on the SunZia visit, noting the enormous size of the wind turbines. She reported that the group discussed environmental impacts, power generation, and the eventual connection to the CAISO system.

ADJOURN
Chair Klein Lopez adjourned the meeting at 3:58 p.m.

Staff Report – Agenda Item 2
To: Board of Directors
From: Cara Rene, Director, Communications & Marketing
Reviewed By:

Approved By:

Nancy Whang, General Counsel
Ted Bardacke, Chief Executive Officer
Subject: Request to Increase Contract Authority of Pastilla, Inc’s Professional Services Agreement by $656,600
Date: November 7, 2024

RECOMMENDATION
Approve an increase in the contract authority of the professional services agreement (PSA) for FY 2024/25 with Pastilla, Inc. by $656,600 for a total Not to Exceed (NTE) amount of $1.02 million for creative services, web development, and web maintenance and authorize the Chief Executive Officer to execute the amendment with Pastilla for the increased amount.

BACKGROUND
In July 2024 the Board approved contracts with two creative agencies, School of Thought and Pastilla Inc., for creative services and website development and maintenance aligned with the Fiscal Year 2024/25 Communications and Marketing budget that the Board approved in June 2024. The School of Thought Professional Services Agreement (PSA) for a not-to-exceed (NTE) amount of $1.01 million was to support enrollment of CPA programs, development of marketing strategy, and grow CPA’s brand awareness. A similar scope of work was outlined for Pastilla for as-needed creative services in addition to web development and web maintenance for a NTE amount of $365,000.

On October 1, CPA gave notice of termination to School of Thought.

Board of Directors Item 2

DISCUSSION
To continue marketing and communications work throughout the current fiscal year, staff propose to amend the PSA with Pastilla to increase the NTE to $1.02 million for the first contract year. The scope of work previously outlined in Pastilla’s PSA is not changed and this proposed NTE increase does not require a budget amendment.

Work planned for this fiscal year for Pastilla includes:
• Refresh our brand campaign to further grow awareness and understanding of CPA • Grow enrollment in the new Solar Storage Rebate program • Grow use of the Energy Team service to support customers in transitioning to clean energy
• Launch an efficient cooling program to support low-income customers • Launch the Managed Charging program to manage the load of EV charging • Continued communications with Power Share and new Community Solar customers
• Continue enrolling customers in the five pathways of the Power Response program • Further promote the Green Leader program and grow the roster of customer participants

FISCAL IMPACT
The proposed new NTE amount of $1.02 million is included in the Board-approved Fiscal Year 2024/25 budget. Any amounts for the renewal years (if any) will be requested in subsequent FY budget proposals.

ATTACHMENTS

1. Amendment to the Professional Services Agreement (PSA) with Pastilla, Inc.

AMENDMENT NUMBER ONE TO
PASTILLA, INC.

PROFESSIONAL SERVICES AGREEMENT
This Amendment Number One (“AMENDMENT ONE”) to the Professional Services Agreement is made by and between Clean Power Alliance of Southern California (“CPA”) and Pastilla, Inc. (“CONTRACTOR”) on November 7, 2024. CPA and CONTRACTOR may individually be referred to herein as a “Party,” or collectively as the “Parties.”

RECITALS
WHEREAS, a Professional Services Agreement (“AGREEMENT”) was executed on June 7, 2024, between CPA and CONTRACTOR to provide professional services for digital marketing, website, social media support, and creative design services; WHEREAS, CPA desires to amend the AGREEMENT in order to update the compensation set forth in Exhibit C;
WHEREAS, CONTRACTOR has the competence and expertise to provide the professional services, described above; and,
WHEREAS, CONTRACTOR desires to continue providing and performing these professional services.

NOW, THEREFORE, it is mutually agreed by and between the Parties hereto to amend the AGREEMENT as follows:

1. Exhibit C of the AGREEMENT is deleted in its entirety and replaced with Exhibit C (Compensation), attached hereto.

2. Except as specifically amended hereby, all other terms and conditions of the AGREEMENT shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this AMENDMENT ONE to be executed as of the date first above written.
[Signature Page Follows]

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
By
______________________________________
Theodore Bardacke
Chief Executive Officer
CONTRACTOR: PASTILLA, INC.
_______________________________________
By
Name:

Title:

A-2
Exhibit C – Compensation
Contractor shall satisfactorily provide all the contemplated Services detailed in Exhibit A at the following hourly rates specified in the table below and in compliance with the terms and conditions of this Agreement:

Description Hourly Rate
T1: Strategy $250
T2: Development $198
T3: Execution $165
T4: Support $125
The hourly rates set forth above shall not increase by more than 3% during any authorized Renewal Term.

Maximum Authorized Fees per Task:

Contract (Task) Item Estimated Due
Date
Maximum
Authorized Fees
Task #1: Website Support
Ongoing over the
duration of the
Agreement
$225,000
Task #2: CPA Brand Growth: Creative
Development
Task #3: CPA Brand Growth: Creative
Content
Ongoing over the
duration of the
Agreement
$63,647
Task #4: Marketing Strategies for CPA
Program Recruitment
Ongoing over the
duration of the
Agreement
$649,683
Task #5: Video Production Services
Task #6: Social Media Support
Task #7: As-Needed Services
Ongoing over the
duration of the
Agreement
$82,492
Maximum Authorized Fees $1,020,822
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.

Maximum Authorized Expenses $0

A-2
A project budget shall be presented and approved by CPA for each task before any work commences. CPA reserves the right to reject and to not pay costs that were not approved in compliance with this provision.

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 One Million Twenty Thousand Eight Hundred Twenty-Two Dollars ($1,020,822) ("Not-to-Exceed" or "NTE") during the Initial Term and for any authorized Renewal Term.

Initial Term: Maximum Amount Up to and Not to Exceed $1,020,822 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.

Staff Report – Agenda Item 3
To: Board of Directors
From: Karen Schmidt, Senior Director, Rates & Strategy
Reviewed by: Matt Langer, Chief Operating Officer
Nancy Whang, General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Correction to Certain FY 2024-2025 Non-Residential Rates Date: November 7, 2024

RECOMMENDATION
Adopt Resolution No. 24-11-076 to Approve Certain Corrected Rates for Phase 1, 2, 4, 5 & 6 Non-Residential Customers effective on November 8, 2024.

BACKGROUND
CPA’s Board set residential and small/medium business1 rates for FY 2024/25 in June 2024 with a reserve percentage target of 38-41% resulting in 100% Green Power targeted to be at a 5% total bill premium compared to SCE rates, Clean Power rates targeted to be at parity and Lean Power rates targeted to be at a 1% discount based on SCE rates effective June 1, 2024.
1 Small/medium business rates include all non-residential accounts on the following rate schedules: TOU-GS-1, TOU-GS-2, TOU-EV, TC, and WTR. In Rolling Hills Estates, South Pasadena, and unincorporated Los Angeles County (Phase 1 & 2), small/medium business rates also include non-residential accounts on TOU-PA, LS, and AL rate schedules.

Board of Directors Item 3
In October 2024, during an upgrade to its modelling capabilities related to CARE rates, CPA staff identified an error in rates for commercial CARE customers2 in the TOU-GS-1- ES and TOU-GS-1-PRI-ES rate classes that were approved by the Board in June of 2024.3 The error was the result of missing data in the CPA rate model impacting only these two rates.

No customers are currently on these two rates. However, a correction is needed in case a customer elects to enroll in either of these rates before CPA’s next anticipated rate change in July 2025.

The proposed updates to these rates conform to the July 2024 Rates Approach adopted by the Board.

NO CUSTOMER OR FINANCIAL IMPACT
There is no customer or financial impact as CPA does not currently serve any customers under CARE rates TOU-GS-1-ES or TOU-GS-1-PRI-ES.

IMPLEMENTATION
If approved by the Board, the updated TOU-GS-1-ES and TOU-GS-1-PRI-ES rate factors will be effective November 8, 2024.

ATTACHMENT

1. Resolution No. 24-11-076
2 The California Alternate Rates for Energy (CARE) Discount is typically for residential customers but is also made available to commercial customers that qualify as a group living facility, agricultural employee housing or migrant farm worker housing center.
3 Option ES is available to certain commercial customers with a behind-the-meter energy storage system.

RESO NO. 24-11-076
RESOLUTION NO. 24-11-076

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

TO APPROVE CERTAIN CORRECTED RATES FOR PHASES
1, 2, 4, 5 & 6 FOR NON-RESIDENTIAL CUSTOMERS

THE BOARD OF DIRECTORS OF THE CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA DOES HEREBY FIND, RESOLVE, AND ORDER AS FOLLOWS:

WHEREAS, the Clean Power Alliance of Southern California (formerly known as Los Angeles Community Choice Energy Authority) (“Clean Power Alliance” or “CPA”) was formed on June 27, 2017;
WHEREAS, Phases 1, 2, 4, 5, and 6 have non-residential customers necessitating the adoption of non-residential rates for these customers; WHEREAS, on June 6, 2024, the Board approved Resolutions 24-06-064, 24- 06-066 and 24-06-067 with FY 2024-2025 rates for phases 1, 2, 4, 5, and 6 based on a reserve percentage target of 38-41% such that for residential and small and medium business customers the 100% Green rate product targets at a 5% total bill premium compared to Southern California Edison (“SCE”) base rates as of June 1, 2024, Clean Power at a 0% total bill discount target compared to SCE base rates as of June 1, 2024, and Lean Power at a 1% total bill discount target compared to SCE base rates as of June 1, 2024 (“2024/2025 Rates Approach”);
WHEREAS, in October 2024, CPA Staff identified errors in the rate calculations for TOU-GS-1-ES and TOU-GS-1-PRI-ES rate classes resulting in rates set below the targets approved by the Board for the 2024/2025 Rates Approach as reflected in Exhibit B of Resolutions 24-06-064, 24-06-066, and 24-06-067;
WHEREAS, no customers have been placed on TOU-GS-1-ES and TOU-GS-1- PRI-ES rates since July 1, 2024; and,
WHEREAS, the Board finds that it is necessary to correct these errors in the event that customers are placed on TOU-GS-1-ES and TOU-GS-1-PRI-ES in the future.

NOW THEREFORE, BE IT DETERMINED, ORDERED, AND RESOLVED,

BY THE BOARD OF DIRECTORS OF THE CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA THAT:

1. The proposed Phases 1 & 2 rate schedules for CARE customers as presented in Exhibit A are hereby approved effective November 8, 2024.

2. The proposed Phases 4 & 5 rate schedules for CARE customers as presented in Exhibit B are hereby approved effective November 8, 2024.

3. The proposed Phases 6 rate schedules for CARE customers as presented in Exhibit C are hereby approved effective November 8, 2024.

RESO NO. 24-11-076
APPROVED AND ADOPTED this 7th day of November 2024.

Deborah Klein Lopez, Chair
ATTEST:

Gabriela Monzon, Secretary

Exhibit A to Resolution 24-11-076
Phase 1 and 2 Non-residential CARE Rate Schedules Effective November 8, 2024 CPA RATE CODE TYPE SEASON TOU PERIOD LEAN - CARE CLEAN - CARE 100% GREEN - CARE

DEFAULT
100% GREEN -
CARE
TOU-GS-1-ES Energy Summer ON-PEAK $ 0.53492 $ 0.54724 $ 0.60888 $ 0.54724 TOU-GS-1-ES Energy Summer MID-PEAK $ 0.15360 $ 0.15698 $ 0.17387 $ 0.15698 TOU-GS-1-ES Energy Summer OFF-PEAK $ 0.10919 $ 0.11153 $ 0.12321 $ 0.11153 TOU-GS-1-ES Energy Winter MID-PEAK $ 0.19556 $ 0.19992 $ 0.22174 $ 0.19992 TOU-GS-1-ES Energy Winter OFF-PEAK $ 0.11031 $ 0.11267 $ 0.12448 $ 0.11267 TOU-GS-1-ES Energy Winter SUPER-OFF-PEAK $ 0.06288 $ 0.06413 $ 0.07038 $ 0.06413 TOU-GS-1-PRI-ES Energy Summer ON-PEAK $ 0.53346 $ 0.54575 $ 0.60721 $ 0.54575 TOU-GS-1-PRI-ES Energy Summer MID-PEAK $ 0.15214 $ 0.15549 $ 0.17221 $ 0.15549 TOU-GS-1-PRI-ES Energy Summer OFF-PEAK $ 0.10773 $ 0.11003 $ 0.12154 $ 0.11003 TOU-GS-1-PRI-ES Energy Winter MID-PEAK $ 0.19410 $ 0.19843 $ 0.22007 $ 0.19843 TOU-GS-1-PRI-ES Energy Winter OFF-PEAK $ 0.10884 $ 0.11117 $ 0.12281 $ 0.11117 TOU-GS-1-PRI-ES Energy Winter SUPER-OFF-PEAK $ 0.06142 $ 0.06263 $ 0.06871 $ 0.06263 Notes
For all rate schedules, seasons are defined as follows:

Winter: season shall commence at 12:00 a.m. on October 1 of each year and continue until 12:00 a.m. on June 1 of the following year.

For all standard non-residential rate schedules, time periods are defined as follows:

Time-related Demand Charges: 4:00 p.m. to 9:00 p.m. winter weekdays and summer weekdays except holidays Summer: season shall commence at 12:00 a.m. on June 1 and continue until 12:00 a.m. on October 1 of each year.

On-Peak: 4:00 p.m. to 9:00 p.m. summer weekdays except holidays Mid-Peak: 4:00 p.m. to 9:00 p.m. winter weekdays and summer and winter weekends/holidays Off-Peak: All other hours – all year, every day
Super Off-Peak: 8:00 a.m. to 4:00 p.m. winter weekdays and weekends/holidays Energy rates are shown in $/kWh.

Exhibit B to Resolution 24-11-076
Phase 4 and 5 Non-residential CARE Rate Schedules Effective November 8, 2024 CPA RATE CODE TYPE SEASON TOU PERIOD LEAN - CARE CLEAN - CARE 100% GREEN - CARE

DEFAULT
100% GREEN -
CARE
TOU-GS-1-ES Energy Summer ON-PEAK $ 0.53505 $ 0.54737 $ 0.60901 $ 0.54737 TOU-GS-1-ES Energy Summer MID-PEAK $ 0.15373 $ 0.15711 $ 0.17400 $ 0.15711 TOU-GS-1-ES Energy Summer OFF-PEAK $ 0.10932 $ 0.11166 $ 0.12334 $ 0.11166 TOU-GS-1-ES Energy Winter MID-PEAK $ 0.19569 $ 0.20005 $ 0.22187 $ 0.20005 TOU-GS-1-ES Energy Winter OFF-PEAK $ 0.11044 $ 0.11280 $ 0.12461 $ 0.11280 TOU-GS-1-ES Energy Winter SUPER-OFF-PEAK $ 0.06301 $ 0.06426 $ 0.07051 $ 0.06426 TOU-GS-1-PRI-ES Energy Summer ON-PEAK $ 0.53359 $ 0.54588 $ 0.60734 $ 0.54588 TOU-GS-1-PRI-ES Energy Summer MID-PEAK $ 0.15227 $ 0.15562 $ 0.17234 $ 0.15562 TOU-GS-1-PRI-ES Energy Summer OFF-PEAK $ 0.10786 $ 0.11016 $ 0.12167 $ 0.11016 TOU-GS-1-PRI-ES Energy Winter MID-PEAK $ 0.19423 $ 0.19856 $ 0.22020 $ 0.19856 TOU-GS-1-PRI-ES Energy Winter OFF-PEAK $ 0.10897 $ 0.11130 $ 0.12294 $ 0.11130 TOU-GS-1-PRI-ES Energy Winter SUPER-OFF-PEAK $ 0.06155 $ 0.06276 $ 0.06884 $ 0.06276 Notes
For all rate schedules, seasons are defined as follows:

Winter: season shall commence at 12:00 a.m. on October 1 of each year and continue until 12:00 a.m. on June 1 of the following year.

For all standard non-residential rate schedules, time periods are defined as follows:

Time-related Demand Charges: 4:00 p.m. to 9:00 p.m. winter weekdays and summer weekdays except holidays Summer: season shall commence at 12:00 a.m. on June 1 and continue until 12:00 a.m. on October 1 of each year.

On-Peak: 4:00 p.m. to 9:00 p.m. summer weekdays except holidays Mid-Peak: 4:00 p.m. to 9:00 p.m. winter weekdays and summer and winter weekends/holidays Off-Peak: All other hours – all year, every day
Super Off-Peak: 8:00 a.m. to 4:00 p.m. winter weekdays and weekends/holidays Energy rates are shown in $/kWh.

Exhibit C to Resolution 24-11-076
Phase 6 Non-Residential CARE Rate Schedules Effective November 8, 2024 CPA RATE CODE TYPE SEASON TOU PERIOD LEAN - CARE CLEAN - CARE 100% GREEN - CARE

DEFAULT
100% GREEN -
CARE
TOU-GS-1-ES Energy Summer ON-PEAK $ 0.52815 $ 0.54047 $ 0.60211 $ 0.54047 TOU-GS-1-ES Energy Summer MID-PEAK $ 0.14683 $ 0.15021 $ 0.16710 $ 0.15021 TOU-GS-1-ES Energy Summer OFF-PEAK $ 0.10242 $ 0.10476 $ 0.11644 $ 0.10476 TOU-GS-1-ES Energy Winter MID-PEAK $ 0.18879 $ 0.19315 $ 0.21497 $ 0.19315 TOU-GS-1-ES Energy Winter OFF-PEAK $ 0.10354 $ 0.10590 $ 0.11771 $ 0.10590 TOU-GS-1-ES Energy Winter SUPER-OFF-PEAK $ 0.05611 $ 0.05736 $ 0.06361 $ 0.05736 TOU-GS-1-PRI-ES Energy Summer ON-PEAK $ 0.52669 $ 0.53898 $ 0.60044 $ 0.53898 TOU-GS-1-PRI-ES Energy Summer MID-PEAK $ 0.14537 $ 0.14872 $ 0.16544 $ 0.14872 TOU-GS-1-PRI-ES Energy Summer OFF-PEAK $ 0.10096 $ 0.10326 $ 0.11477 $ 0.10326 TOU-GS-1-PRI-ES Energy Winter MID-PEAK $ 0.18733 $ 0.19166 $ 0.21330 $ 0.19166 TOU-GS-1-PRI-ES Energy Winter OFF-PEAK $ 0.10207 $ 0.10440 $ 0.11604 $ 0.10440 TOU-GS-1-PRI-ES Energy Winter SUPER-OFF-PEAK $ 0.05465 $ 0.05586 $ 0.06194 $ 0.05586 Notes
For all rate schedules, seasons are defined as follows:

Winter: season shall commence at 12:00 a.m. on October 1 of each year and continue until 12:00 a.m. on June 1 of the following year.

For all standard non-residential rate schedules, time periods are defined as follows:

Time-related Demand Charges: 4:00 p.m. to 9:00 p.m. winter weekdays and summer weekdays except holidays Summer: season shall commence at 12:00 a.m. on June 1 and continue until 12:00 a.m. on October 1 of each year.

On-Peak: 4:00 p.m. to 9:00 p.m. summer weekdays except holidays Mid-Peak: 4:00 p.m. to 9:00 p.m. winter weekdays and summer and winter weekends/holidays Off-Peak: All other hours – all year, every day
Super Off-Peak: 8:00 a.m. to 4:00 p.m. winter weekdays and weekends/holidays Energy rates are shown in $/kWh.

Staff Report – Agenda Item 4
To: Board of Directors
From: Christian Cruz, Senior Community Outreach Manager Approved by: Ted Bardacke, Chief Executive Officer
Subject: Community Advisory Committee (CAC) Report
Date: November 7, 2024

RECOMMENDATION
Receive and file.

MEETING REPORT

COMMUNICATIONS AND MARKETING UPDATE
In October, the Community Advisory Committee (CAC) received a presentation on CPA’s Communications and Marketing campaigns. The update included information on:
• CPA Energy Team and Innovation Fund webpages
• Board and committee portals
• CPA brand campaign and media visibility
• Earned media highlights
• Program marketing
In addition, the CAC was briefed on the upcoming Managed Charging Program which will incorporate quantitative research to inform the marketing and outreach design. The program is anticipated to launch in Spring 2025.

The CAC has requested that staff ensure all CAC members are included on CPA’s distribution lists to receive newsletters, press releases, and information on CPA program campaigns. This will equip the CAC with the necessary information to help disseminate critical program updates and resources within CPA communities.

ATTACHMENT

1. CAC Meeting Attendance

Board of Directors Item 4
Community Advisory Committee Attendance
2024
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov
East Ventura/West LA County
Angus Simmons ✓ ✓ A ✓ ✓ ✓ ✓ ✓
Kat Selm X ✓ ✓ ✓
Debbie West A ✓ A ✓ ✓ ✓ ✓ ✓
San Gabriel Valley
Richard Tom ✓ A A A A A A ✓
Vacant
West/Unincorporated Ventura County
Kent Bullard ✓ ✓ ✓ ✓ ✓
Daniel Mora ✓ ✓ ✓ A ✓ ✓ ✓
South Bay
Cort Casady ✓ ✓ ✓ ✓ A ✓ ✓ ✓
Diane Wallace ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Gateway Cities
Vacant A ✓ ✓
Genaro Bugarin ✓ A ✓ ✓ ✓ ✓ A ✓
Westside
Cris Gutierrez ✓ A ✓ ✓ ✓ ✓ A ✓
David Haake A ✓ ✓ ✓ ✓ ✓ ✓ A
Unincorporated LA County
Neil Fromer ✓ ✓ A ✓ ✓ ✓ ✓ ✓
Vacant
✓ - Attended A – Absent X – Medical/Personal Leave
Action Items and Presentations
January
Legislative Update/2024 Policy Platform
July
Programs Metrics
Energy Model
February
Renewable Energy (RE) Supply and CPA
Product Content
August
DARK
March
Sun Storage Rebate Program Rates
Outlook 2024/2025
September
Managed Charging/PRIME-SOP
Power Share Updated
April
Cancelled
October
Marketing and Communications Update
May
FY 2024/25 Budget FY 2024/25 Rates
June
Energy Advisor Program
Managed Charging Program

Staff Report – Agenda Item 5
To: Board of Directors
From: Xico Manarolla, Electrification Program Manager
Reviewed By: Joanne O’Neill, Director, Customer Programs Matthew Langer, Chief Operating Officer
Nancy Whang, General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Workforce Development
Date: November 7, 2024

RECOMMENDATION
Approve the Clean Energy Workforce Development Investment Plan Phase 3 with total funding in the amount of $1,323,000 consisting of:
(a) Memoranda of Understanding (MOU) for a 3-year term with (i) Flintridge Center in the total amount of $435,000 and (ii) Women in Non-Traditional Employment Roles (WINTER) in the total amount of $558,000;
(b) Updates or establishment of Voyager Scholarship agreements with up to eleven (11) Community Colleges for a total amount of $330,000 over a 2-year term.

This funding will support Board-directed investments using Community Benefit funds from Power Purchase Agreements (PPA) and provide workers with skills to facilitate building and transportation electrification and to support union apprenticeship programs.

BACKGROUND
Workforce Development Program Overview
As part of the terms of its 2019 Power Purchase Agreement (PPA) with CPA, Mohave County Wind Farm, LLC agreed to invest $1 million in workforce development efforts for

Board of Directors Item 5
Los Angeles and Ventura Counties at the direction of CPA. In 2020 the Board directed Staff to seek out program investments that will “green” existing jobs by providing training and resources to give workers the skills necessary to facilitate building and transportation electrification. Union apprenticeship programs, clean energy rapid skills training, and certificate programs for both union and non-union pathways were identified as the types of investments that Staff should consider.

In 2021 the Board approved Phase 1 of the Clean Energy Workforce Development Investment Plan (Workforce Funding Plan) that provided $398,500 for a microgrid maintenance and workforce training program with Los Angeles Cleantech Incubator (LACI) and two cybersecurity apprenticeship trainings for smart buildings and smart cities with the International Brotherhood of Electrical Workers (IBEW). These training courses were taught by the Ventura County Electrical Joint Apprenticeship Training Committee (VCEJATC) and Los Angeles Electrical Training Institute (LAETI). As a result of this funding, 26 students graduated from the LACI microgrid program, and 24 apprentices to-date have been trained using equipment purchased with CPA funding by VCEJATC.

Apprentices at LAETI will begin using their electrical trainers in 2025. Combined, more than 200 apprentices are expected to be trained over the 5-year equipment lifespan.

In 2023 the Board approved Phase 2 of the Workforce Funding Plan that expanded its earlier efforts and provided $254,330 for a project management training course with LACI and support for two (2) energy storage and microgrid and certification trainings with the IBEW training centers (VCEJATC and LAETI), along with 105 scholarships to seven (7) community colleges through the Voyager Scholarship Program (previously funded separately through the Voyager Wind PPA, see below). Funding for LACI’s project management course supported the development of course curriculum and teacher fees, resulting in 34 graduates and 15 internship stipends. VCEJATC began using CPA-funded battery storage trainers in 2024 for 12 apprentices and this equipment is expected to support approximately 100 apprentices over its 5-year lifespan. After Phase 1 and Phase 2 of funding, the two IBEW training centers have expressed limited ability to absorb additional CPA investments in equipment or curriculum development, to the extent that

Board of Directors Item 5
LAETI declined CPA’s additional funding due to a shortening of the apprenticeship program from 5 years to 4 years.

To date, CPA has spent or committed $764,990 of the community benefits funding from PPAs to partners for workforce development initiatives. Since the original Mohave Wind PPA launched the first Workforce Funding Plan, six additional PPAs including similar funding have been approved by the Board, raising the total amount of available funds for workforce development to $2,600,000 with an additional $750,000 expected to be available in 2026 ($3,350,000 total). If the Board approves Phase 3 of the Workforce Funding Plan, $1,262,010 will remain available for additional workforce development projects in the future.

DISCUSSION
Pre-Apprenticeship Programs
After supporting the IBEW training centers in Phase 1 and Phase 2 of CPA’s workforce development efforts, the training center’s needs for CPA’s support were met – many of the skills necessary to implement electrification projects have now been incorporated into the standard apprenticeship curriculum. As a result, in late 2023 and 2024 CPA conducted outreach to numerous training programs and regional workforce development leaders and stakeholders to evaluate alternative future partnership opportunities aligned with CPA’s mission. During this evaluation, it was made clear that major barriers to joining apprenticeship programs occur in the pre-apprenticeship stage. This is particularly true for women, formerly incarcerated, and gang-impacted individuals, target populations that have benefitted from pathways into the steady well-paid careers that the construction trades provide. CPA identified training centers that focus on these individuals within its service territory to reduce the barriers to apprenticeship through the provision of pre-apprenticeship programs.

Pre-apprenticeship programs utilize the national-standard Multi-Craft Core Curriculum (MC3). The MC3 was developed by the Building Trades National Apprenticeship Committee and is utilized by 26 unions from the Los Angeles Building and Construction

Board of Directors Item 5
Trades Council. The curriculum includes job site certifications, life skills, hands-on training, and case management to assist with navigating additional support services.

CPA has identified two pre-apprenticeship programs that not only support traditionally underrepresented groups of people, but that also have a track record of high levels of successful placement of students into apprenticeship programs. Additionally, these training programs have established curriculum and approaches, meaning CPA funding will go directly to supporting additional students in accessing these courses and services.

The first program is through the Flintridge Center which provides pre-apprenticeship training to previously incarcerated and gang impacted individuals. The second, WINTER, provides pre-apprenticeship training to women who are low-income, formerly incarcerated, and aging out of foster care. Both organizations provide training at no charge to students and aim to fill a gap of equity and accessibility to high wage union jobs that are often out of reach for underserved communities.

Funding for 3-years for both Flintridge Center (total of $435,000) and WINTER (total of $558,000) will include supportive services and training stipends for annual cohorts.

Supportive services help students overcome numerous barriers including access to childcare, housing, transportation assistance, union initiation fees, construction equipment, and driver's licenses fees. Stipends of $400 per week will be paid to the students while in the training course since the demands of the training limit other employment opportunities during that period. Additionally, the proposal for WINTER would enable WINTER to expand its training capabilities and train 24 additional students per year through a 1,500 sq ft expansion of its classroom area. Combined, this $993,000 in funding will allow 150 students access to pre-apprenticeship training.

Per guidance from the Executive Committee, should the Board approve the proposed Workforce Development Phase 3 funding approach, CPA staff:

Board of Directors Item 5
a) Will seek out partners in Ventura County who run the MC3 or similar pre-apprenticeship programs to fund at levels similar to those being proposed with Flintridge Center and WINTER.
b) During MOU discussions with Flintridge Center and WINTER, develop outreach strategies that focus on residents of CPA member communities.

Voyager Scholarship Expansion
In 2019 the Board approved Phase 1 of the Voyager community college scholarship program, which funded $1,000 scholarships for students studying STEM careers at seven community colleges across CPA’s service territory, four in Los Angeles County and three in Ventura County. Based on the anticipation of funding from Phase 1 being exhausted, the Board approved additional funding for the program in 2023.

By mid-2024, only one community college had fully distributed Phase 1 funding. As a result, staff met with several community college partners to discuss ways to increase the number of scholarships delivered. Community College Foundation staff (who administer the scholarship funds) noted low interest in scholarships since they only covered approximately one-third of student course and materials fees. Additionally, schools expressed that they devoted limited outreach efforts given the uncertainty of future funding.

Phase 3 of the Voyager Scholarship program addresses the challenges of low participation and limited promotion by increasing scholarship values to $3,000 (previously $1,000) for full-time students per year and by establishing a $1,500 scholarship for part-time students (previously $0). Additionally, it will secure two additional years of funding, providing certainty through 2027 (sufficient funding for 2025 was approved in Phase 2).

Staff also propose to add four additional community colleges, including two that represent a combined 51,000 enrolled full time and part time students and which serve large portions of unincorporated Los Angeles County, Mt. San Antonio and Cerritos, and to include funding for up to two yet-to-be determined community colleges. The expanded Voyager Scholarship program will then fund 11 community colleges across Los Angeles

Board of Directors Item 5
and Ventura Counties with 110 full-time scholarships or up to 220 part time scholarships over 2 years for a total cost of $330,000.

Per guidance from the Executive Committee, CPA will evaluate additional community colleges for participation in the Voyager Scholarship program, including Los Angeles Harbor College. The recommended action includes the authorization to add Mt. San Antonio College and Cerritos College and up to two additional community colleges to the Voyager Scholarship program under the CEO’s signing authority.

NEXT STEPS
Should the Board approve the proposed Workforce Development Investment Plan Phase 3 approach, staff will take the following actions:
• Incorporate feedback from the Board of Directors on Workforce Development Phase 3 Program
• Negotiate funding agreements with Flintridge Center, WINTER and 11 Voyager community colleges and establish targets to ensure continued success rates per Executive Committee guidance
• Seek out MC3 or similar pre-apprenticeship programs in Ventura County • Develop residential CPA customer outreach strategies during MOU process for Flintridge Center and WINTER
• Evaluate additional community colleges for the Voyager scholarship, including Los Angeles Harbor College

FISCAL IMPACT
The Board approved FY 2024/25 budget reflects funding for Phase 3 Workforce Development Program operations through the end of the current fiscal year. Funding for future years will be reflected in future budget proposals.

ATTACHMENTS

1. Workforce Development Phase 3 Funding Presentation

Workforce Development
Phase 3 Funding
November 7, 2024

Agenda
CPA’s Workforce Development Background
Drivers for Phase 3 Proposal
MC3 Pre-apprenticeship Programs
o Flintridge Center and WINTER
Voyager Community College Scholarship Expansion
2 Action Requested:

Approve Workforce Development Phase 3 Funding Proposal

CPA’s Workforce Development Efforts
3 In 2019, the Board approved the Voyager Wind PPA which created the fund for the Voyager Scholarship program for targeted Community Colleges In December 2020, the Board directed staff to seek out Workforce Development program investments using PPA-directed funds that:
• “Green” existing jobs by providing training and resources that will give workers skills necessary to facilitate building and transportation electrification
• Support union apprenticeship programs, clean energy rapid trainings, and certificate programs for both union and non-union pathways
In November 2021 and July 2023, the Board approved Phases 1 and 2, respectively, of Workforce Development Investment Plan
• IBEW electrical training institutes (ETIs) and Los Angeles Clean Tech Incubator (LACI) main partners A total of $2,600,000 of funding provided through 7 PPAs CPA has provided $764,990 in funding to-date
$2,585,010 of funding is still available (including $750,000 in 2026 from SunZia)

Phase 1 & 2 Funding Outcomes
4 Funding PartnerFundingSubject Status Outcomes To Date Los Angeles Cleantech
Incubator (LACI)
$50,000Microgrid Maintenance Training Complete • 35 participants • 26 graduates
$100,000 Project Management Training
(EVSE)
Complete • 34 participants
• 34 graduates
• 15 internships
Ventura County Electrical
Joint Apprenticeship
Training Committee
(VCEJATC)
$123,000Cybersecurity Apprenticeship
Training for Smart Buildings and
Smart Cities
Equipment procured.

Training ongoing with CPA-funded
equipment
• 24 apprentices have
used equipment
$11,490 Electrical Stroage and Microgrid
Training and Certification program
Equipment procured. Training
ongoing with CPA-funded equipment
• 12 apprentices have
used the equipment
Los Angeles Electrical
Training Institute (LAETI)
$225,500Cybersecurity Apprenticeship
Training for Smart Buildings and
Smart Cities
Equipment procured.

Training ongoing with CPA-funded
equipment
• Training to begin in
2025
Community Colleges in
Los Angeles and Ventura
Counties
$150,000$1,000 Scholarships to students
in community colleges (Phase 1)
63% of funding distributed • 99 Scholarships
awarded
$105,000 $1,000 Scholarships to students
in community colleges (Phase 2)
14% funding distributed • Distributions began in
late 2024
Total$764,990

Why We Are Looking At Other Options
Limited ability for IBEW training centers to absorb additional CPA investments in equipment or curriculum development – they need assistance getting more people into apprenticeship programs 5 Identified obstacles to admittance to construction trades apprenticeship programs
• Knowledge/experience to pass entrance exam
• Additional costs: Childcare, equipment, entry fees etc.

Women, previously incarcerated, and veterans are under-represented in CPA’s currently funded workforce programs • ETIs: <6% women, 0% previously incarcerated / veterans • LACI: 39% women, 0% previously incarcerated, and 1%
veterans
Voyager scholarships have had low uptake
• Uncertainty of future funding led to limited marketing by colleges
• Scholarship covers only about 1/3 of course fees

MC3 Pre-Apprenticeship Programs
They provide a clear path to high wage jobs for underserved communities Leverage an established curriculum, CPA funding goes directly to student support Selected programs have high success rates of placing students in union apprenticeship programs
Why Fund Pre-Apprenticeship Programs?
6 Bootcamps for all union construction trade apprenticeship programs • 10-week, 240-hour program
Utilize Multi-Craft Core Curriculum (MC3)
• A standardized curriculum developed and approved by the Building Trades National Apprenticeship Committee • Used to enter apprenticeship programs for 15 affiliated unions that make up North America Building Trades Unions and 26 unions from the LA/OC Building & Construction Trades Council • Major trades working on CPA/Renewable Energy projects represented What are Pre-Apprenticeship Programs?

Flintridge Center
Located in Pasadena, Flintridge has run
workforce development programs since 2007
o 50% of students are from Pasadena, Altadena and
San Gabriel Valley communities. Other 50% from
throughout LA County.

Administrator of successful HireLAX
Apprenticeship Readiness Program using
MC3 curriculum
Provides previously incarcerated and gang-impacted individuals tuition–free training for careers in union construction trades
Trains 60-90 students per year
70% of students are placed in union
apprenticeship programs within 1 year
7 Recommended Implementation
Approach
MOU with Flintridge Center for $435,000
over 3 years that includes:
• Stipends for 30 students per year
($360k total)
• Provides $400/week to participate
in training
• Supportive services ($75k)
• Assistance with housing,
transportation, childcare, legal
support, medical care, driver's
license, DMV and ID assistance,
union initiation fees, construction
equipment

Women in Non-Traditional
Employment Roles
(WINTER)
Located in City of Commerce, WINTER has run
workforce development programs since 1996
Provides women 18-45 years old with a
tuition-free apprenticeship readiness
program that builds foundational skills for a
career in construction
Focuses on low income, women of color,
formerly incarcerated, and aging out of foster
care
84% of students are placed in union
apprenticeship programs within 6 months
8 MOU with WINTER for $558,000 over 3
years that includes:
• Stipends for 20 students per year
($240k)
• Supportive services ($120k)
• Rent for additional training space
($198k)
• Currently trains up to 56 women per
year, additional space would
increase capacity to 80 women per
year
Recommended Implementation
Approach

Voyager Scholarships
Incentivizes students to take energy-related
courses and provides resources to allow
them to focus their time and energy on
coursework
Increasing scholarship level from to $3,000
for full-time students and $1,500 for part
time students and making multi-year funding
commitment helps with uptake
• Adding additional Community Colleges
based on CAC and Board guidance. New
schools include Mt. San Antonio and Cerritos
Colleges. Space for two more yet-to-be
determined schools
o Exploring opportunities with LA Harbor College
9 Amend current agreements with 7
colleges to increase scholarship
amounts
Finalize a total of $330,000 in 2-year
agreements with up to eleven
Community Colleges that includes:
• $15,000 per school, per year, starting
in 2026
• Existing funding must be exhausted
by 7 existing schools prior to
receiving new funding
Recommended Implementation
Approach

Proposed Funding Summary
10 Program Support Type 2025 2026 2027
Flintridge
Supportive Servies $25,000 $25,000 $25,000
Stipends $120,000 $120,000 $120,000
WINTER
Supportive Services $40,000 $40,000 $40,000
Stipends $80,000 $80,000 $80,000
Rent $66,000 $66,000 $66,000
Voyager Scholarships $0* $165,000 $165,000
Yearly Cost $331,000** $496,000 $496,000
Total Cost (3-year) $1,323,000
Remaining Funding $1,262,010
*$105,000 in funding previously authorized for 2025
** Included in FY 2023-2024 Board approved budget

Outreach Approaches
Flintridge Center WINTER Voyager
11 Receives referrals from
Pasadena Prosecutor, LA
County jails and CA Dept
of Corrections and
Rehabilitation (CDCR)
facilities
23 partner organizations
provide services and
referrals
Media and outreach
campaigns
Works with Social
Services, Housing, Early
Childhood Education,
Mental Health, Probation
and Parole and Child and
Family Services
Social media, events
Graduate referrals
Marketed by Community
Colleges
Promoted in pathway
program courses by Deans,
professors and
Departments
All students notified
through scholarship portal
Opportunity for CPA to raise awareness of pre-apprenticeship programs through its newsletters, social media, community outreach, and via member agencies

Next Steps
12 CPA Executive Committee supported Staff recommendation on October 24th.

Pending Board approval, CPA staff will negotiate funding agreements with each entity. These will establish targets to ensure continued success rates, accountability, and recruitment activities in CPA partner communities.

Explore similar MC3 pre-apprenticeship program options in Ventura County, including Coastal Tri-Counties Program and others.

Return with negotiated pre-apprenticeship program Memoranda of Understanding (MOU) for Board approval.

Evaluate expansion of community college options for Voyager Scholarships, including Los Angeles Harbor College.

Action Requested
13 Approve the Clean Energy Workforce Development Investment Plan Phase 3 with total funding in the amount of $1,323,000 consisting of:
a) Memoranda of Understanding (MOU) for a 3-year term with (i) Flintridge Center in the total amount of $435,000 and (ii) Women in Non-Traditional Employment Roles (WINTER) in the total amount of $558,000; b) Updating or establishing Voyager Scholarship agreements with up to eleven (11) Community Colleges for a total amount of $330,000 over a 2- year term.

Appendix

Workforce Funding Sources
Current and Future Workforce Funding (Includes Workforce, Voyager and Community Benefits Funding)
15 Funding Entity (PPA) Funding
Received
Funding Spent/
Committed
Funding
Remaining
Mohave Wind (NextEra) $1,000,000 $614,990 $385,010
Voyager Wind $150,000 $150,000 $0
Arlington Energy Center $500,000 $0 $500,000
Resurgence Solar II, LLC $100,000 $0 $100,000
Estrella Solar, LLC $500,000 $0 $500,000
Desert Sands Storage (NextEra) $100,000 $0 $100,000
Pattern Energy (Sunzia) $250,000 $0 $250,000
Total Current Funds $2,600,000 $764,990 $1,835,010
Future Funding
Pattern Energy (Sunzia) - 2026 $750,000 $750,000
Total w/Future Funds $3,350,000 $2,585,010

Staff Report – Agenda Item 6
To: Board of Directors
From: David McNeil, Chief Financial Officer
Hui Lisano, Senior Director, Finance and Accounting
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Fiscal Year 2023-2024 Audited Financial Statements and Fiscal Year 2023-2024 Budget to Actual Report
Date: November 7, 2024

RECOMMENDATION
Receive a presentation of CPA’s Financial Results for Fiscal Year 2023-2024 and FY 2023-2024 Budget to Actual report.

BACKGROUND
Each year CPA publishes fiscal year-end financial statements. CPA’s Bylaws require the Finance Committee to select an independent auditor to perform a financial audit of the accounts of CPA annually. In April 2024, the Finance Committee selected Baker Tilly to perform an audit of CPA’s Fiscal Year 2023-24 financial statements.

CPA staff is responsible for the preparation and fair presentation of financial statements.

The independent auditor performs tests to ensure that the financial statements are free from material misstatement. On October 30, 2024, Baker Tilly reported its audit findings to the Finance Committee which included a ‘clean’ audit opinion.

The FY 2023-24 Audited Financial Statements (Attachment 1) consist of the following:
• Independent Auditors’ Report (Auditors’ Report)
• Management’s Discussion and Analysis

Board of Directors Item 6
• Financial Statements, including:
o Statements of Net Position
o Revenues and Expenses and Changes in Net Position
o Statements of Cash Flows
o Notes to the Financial Statements

DISCUSSION
Auditors’ Report
The Auditors’ Report includes its opinion that CPA’s FY 2023-24 Financial Statements “present fairly, in all material respects, the financial position of Clean Power Alliance of Southern California as of June 30, 2024, and 2023, and the respective changes in financial position and cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America”. The Auditors’ Report contains what is generally regarded as an unqualified or “clean” audit opinion.

Financial Highlights
• CPA recorded strong financial results in FY 2023-24. The net position increased by $106.1 million, up from an $80.3 million increase in the prior year and CPA deferred $135 million of revenue to the Fiscal Stabilization Fund consistent with the Board approved Fiscal Stabilization Fund Policy allowing these funds to be deployed in future years (see below for details).
• CPA’s FY 2023-24 financial results benefited from the following:
• Increases in retail electricity rates on July 2023 and new community enrollments in March 2024.
• Increases in investments and cash balances in high interest-earning accounts.
• Operating expenses, excluding the cost of energy, increased year over year from $34.7 million in FY 2022-23 to $41.1 million in FY 2023-24, an increase of 18.6%. • Cash balances were positively impacted by the operating surpluses, which were mainly driven by rate increases that went to effect in July 2023. Accounts

receivable increased primarily due to the retail sales increase resulting from rate increases, more jurisdictions electing to adopt 100% Green as their default rate product, and three new community enrollments in March 2024. Other receivables increased compared to the prior year due to an increase in wholesale sales of electricity and receivables from the California Community Choice Financing Authority (CCCFA). Prepaid expenses increased primarily due to increased Resource Adequacy costs and prepayments for Resource Adequacy. Deposits decreased primarily due to lower energy prices in June 2024 and lower posting obligations required by the California Independent Systems Operator (CAISO). • In March 2024, CPA extended the term of its Credit Agreement with JP Morgan, keeping the facility size at $160 million and extending the expiry date to March 31, 2026.
• As of June 30, 2024, CPA had no loans, bank debt, or letters of credit outstanding, apart from a $147,000 letter of credit issued to SCE; $159.853 million of CPA’s line of credit was unutilized.
• Total liquidity (available cash, investments and unused bank lines of credit) increased year over year from $289.3 million as of June 30, 2023, to $546.3 million as of June 30, 2024.
• The financial results comply with CPA’s credit covenants.

Key financial metrics and additional analysis of FY 2023-24 results are presented in the Presentation of FY 2023-24 Financial Results (see Attachment 3).

Fiscal Stabilization Fund
In September 2020, CPA’s Board approved the Fiscal Stabilization Fund (“Fund”) policy (“Policy”). The Fund allows CPA to defer revenue in years when financial results are strong and to apply deferred revenue in years when financial results are negatively impacted by uncontrollable events. Deferring revenue in years when financial results are strong allows CPA to apply these funds in years when financial results are less robust, providing CPA with a tool to guard against rate shocks, maintain compliance with financial Board of Directors Item 6

covenants, and achieve annual budget objectives.

The Chief Executive Officer is authorized to exercise discretion and make transfers to and from the Fund consistent with the Policy objectives and under one of the following two conditions: A. Transfers when increases in the Net Position would exceed 4% of revenues in the absence of a transfer or B. Transfers when increases in the Net Position would fall below 4% of revenues in the absence of a transfer from the Fund.

The $135 million transfer in FY 2023/24 meets the authorization requirements and goals of the Policy and has been sized to absorb high-impact, low frequency losses. This transfer to the Fund is consistent with CPA and stakeholder expectations vis-a-vis CPA’s A- Issuer Credit Rating.

FY 2023-24 Budget to Actual Report
The FY 2023-24 Budget to Actual Report (see Attachment 2) compares actual results for the 12-months ending June 30, 2024 with the FY 2023-24 Budget approved by the Board in June 2023. Budget to Actual highlights include:
• Electricity revenues were 5% below budget as a result of cooler than normal weather conditions and lower than forecast electricity consumption. CPA deferred $135 million of revenue to the Fund resulting in Operating revenues that were $223 million or 14% below budget.
• Energy costs were 2% below budget. Energy costs were negatively impacted by an increase in the 2023 Market Price Benchmark promulgated by CPUC in early October 2023 which increased certain renewable energy costs offset by energy consumption which was lower than forecast.
• Operating expenditures were 26% under the budget primarily due to lower spending on general and administrative expenses, customer programs and other services, and the non-utilization of contingencies.

CPA was within budget limits for all operating expense budget line items except for SCE services which were $42,600 or 2% over the budget. SCE service expenses exceeded Board of Directors Item 6

the budget due to unanticipated charges levied by SCE that related to services performed in prior fiscal years.

Additional analysis of Budget to Actual results, including a comparison of actual FY 2023- 24 results with the FY 2023-24 Budget approved by the Board in June 2023, appears in the Presentation of FY 2023-24 Financial Results (Attachment 3).

Summary
For the year ending June 30, 2024, CPA increased the net position and total liquidity by $106 million and $257 million respectively. Reserves and Days Liquidity on Hand were increased to 37% and 158 days respectively as of June 30, 2024. CPA have met the reserve policy targets for both metrics. CPA is in sound financial health and is well-positioned to serve its customers and deliver on its mission.

ATTACHMENTS

1. FY 2023-24 Audited Financial Statements

2. FY 2023-24 Budget to Actual Report

3. Presentation of FY 2023-24 Financial Results
Board of Directors Item 6

CLEAN POWER ALLIANCE OF SOUTHERN

CALIFORNIA
Basic Financial Statements with Independent
Auditors’ Report

For the Fiscal Years Ended June 30, 2024 and 2023

TABLE OF CONTENTS
Independent Auditors' Report ………………………………………………………... 1 Management's Discussion and Analysis (Unaudited) ………………………………… 3 Basic Financial Statements:

Statements of Net Position …………………………………………………… 13
Statements of Revenues, Expenses and Changes in Net Position …................ 14 Statements of Cash Flows …………………………………………………… 15
Notes to the Basic Financial Statements ……………………………………. 17

Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms.

Independent Auditors' Report
To the Board of Directors of
Clean Power Alliance of Southern California
Opinion
We have audited the accompanying financial statements of Clean Power Alliance of Southern California (CPA), as of and for the years ended June 30, 2024 and 2023, and the related notes to the financial statements, which collectively comprise the CPA's basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of CPA as of June 30, 2024 and 2023, and the changes in financial position and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the CPA and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the CPA's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
1

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the CPA's internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the CPA's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Madison, Wisconsin
October 25, 2024
2

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEARS ENDED JUNE 30, 2024 AND 2023
3 MANAGEMENT’S DISCUSSION AND ANALYSIS

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEARS ENDED JUNE 30, 2024 AND 2023
4 The Management's Discussion and Analysis section provides an overview of Clean Power Alliance of Southern California's (CPA) financial activities as of and for the fiscal years ending June 30, 2024 and 2023. The information presented here should be considered in conjunction with the audited financial statements.

Contents of this Report
This report is divided into the following sections:
 Management's Discussion and Analysis.
 The Basic Financial Statements, including:
o The Statements of Net Position which include all of CPA's assets, liabilities, and net position and provide information about the nature and amount of resources and obligations at a specific point in time.
o The Statements of Revenues, Expenses, and Changes in Net Position which report all of CPA's revenues and expenses for the years shown. o The Statements of Cash Flows which report the cash provided and used by operating activities, as well as other sources and uses, such as non-capital financing activities.
o Notes to the Basic Financial Statements, which provide additional details and information related to the Basic Financial Statements.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEARS ENDED JUNE 30, 2024 AND 2023
5 BACKGROUND
CPA was formed pursuant to California Assembly Bill 117, which enables communities to purchase power on behalf of their residents and businesses and creates retail choices for electric generation services.

CPA, formerly Los Angeles Community Choice Energy (LACCE), was created as a California Joint Powers Authority on June 27, 2017. CPA was established to study, promote, develop, conduct, operate, and manage energy programs in Southern California. The parties to CPA's Joint Powers Agreement (JPA) consist of local governments whose governing bodies elect to join CPA.

Governed by a board of directors (Board) made up of elected officials from each of the parties to the JPA, CPA has the authority to set rates for the services it furnishes, incur indebtedness, and issue bonds or other obligations. CPA acquires electricity from commercial suppliers and delivers it through existing physical infrastructure and equipment managed by the California Independent System Operator (CAISO) and Southern California Edison (SCE).

Pursuant to the Public Utilities Code, when parties join CPA, all electricity customers in its jurisdiction, except for customers served under California's Direct Access Program, automatically become default customers of CPA for electric power generation, provided that customers are given the option to "opt-out".

CPA began operations by serving approximately 1,800 municipal and commercial accounts in February 2018. In June 2018, it enrolled approximately 28,000 municipal and commercial accounts. In February 2019, CPA enrolled approximately 900,000 residential customer accounts.

In May 2019, CPA enrolled approximately 100,000 commercial accounts. CPA enrolled approximately 4,000 residential and commercial accounts from Westlake Village in June 2020 and approximately 38,000 residential and commercial accounts from Hermosa Beach, Monrovia, and Santa Paula in March 2024. In October 2025, CPA will enroll approximately 33,000 additional accounts from three new jurisdictions.

CPA's goal is to provide customers with competitively priced and affordable electricity with high renewable energy content and low greenhouse gas emissions. Currently, CPA offers its customers three electricity products to choose from: Lean Power, Clean Power, and 100% Green Power. Lean Power provides 40% clean energy; Clean Power provides at least 50% clean energy and 100% Green Power provides 100% renewable energy content.

Financial Reporting
CPA presents its financial statements as a governmental enterprise fund under the economic resources measurement focus and accrual basis of accounting, in accordance with Generally Accepted Accounting Principles (GAAP) for proprietary funds, as prescribed by the Governmental Accounting Standards Board (GASB).

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEARS ENDED JUNE 30, 2024 AND 2023
6 FINANCIAL HIGHLIGHTS
The following table summarizes CPA's assets, liabilities, deferred inflows of resources, and net position for the fiscal years (FY) ending June 30, 2024 and 2023.

Current Assets
Current assets were approximately $738,427,000 at the end of FY 2023-24 and were mainly comprised of $333,509,000 of cash and cash equivalents, $60,000,000 of investments, $143,168,000 of accounts receivable, $95,218,000 of accrued revenue, $11,503,000 of other receivables and $91,293,000 of prepaid expenses. Investments were made in Certificates of Deposit with a one-year maturity or less and are redeemable upon demand.

Current assets were approximately $407,408,000 at the end of FY 2022-23 and were mostly comprised of $132,787,000 of cash and cash equivalents, $123,259,000 of accounts receivable, $87,230,000 of accrued revenue, $46,153,000 of prepaid expenses and $15,951,000 in deposits.

Total current assets increased as of June 30, 2024, compared to the prior year, particularly cash, investments, accounts receivable, and prepaid. Cash increased year over year primarily due to operating surpluses, which were mainly driven by rate increases that went into effect in July 2023.

Accounts receivable increased primarily due to the retail sales increase resulting from rate increases, more jurisdictions electing to adopt 100% Green as their default rate product, and three new community enrollments in March 2024. Other receivables increased compared to the prior year mainly due to an increase in wholesale sales of electricity and receivables from the California Community Choice Financing Authority (CCCFA). Prepaid expenses increased primarily due to increased Resource Adequacy costs and prepayments for Resource Adequacy. Deposits decreased primarily due to lower energy prices in June 2024 and lower posting obligations required by the CAISO.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEARS ENDED JUNE 30, 2024 AND 2023
7 Total current assets increased as of June 30, 2023, compared to the prior year, mainly as a result of increases in cash, prepaid expenses, accrued revenue, and accounts receivable. Cash increased mainly due to operating surpluses and reduced collateral posting required by the CAISO. Prepaid expenses increased compared to the prior year, mostly due to the prepayments required pursuant to Resource Adequacy contracts. Accounts receivable increased primarily due to greater retail sales increase resulting from rate increases, more jurisdictions converting to the 100% Green rate, and the suspension by SCE of disconnections and late payments penalties applied to residential accounts receiving funding under the California Arrearage Payment Program (CAPP).

Noncurrent Assets
Noncurrent assets decreased as of June 30, 2024 and 2023 compared to the prior years, mainly due to the amortization of the office lease as an intangible asset and depreciation expenses.

Current Liabilities
Current liabilities consist mostly of the costs of electricity delivered to customers that are not yet due to be paid by CPA to its suppliers. Other components include trade accounts payable, taxes and surcharges due to governments, and various other accrued liabilities. Unearned program funds represent funds for customer programs received from the CPUC and not yet spent.

Total current liabilities increased as of June 30, 2024, compared to the prior year, primarily due to increases in security deposits from energy suppliers and accrued energy costs resulting from higher renewable energy and resource adequacy costs.

Total current liabilities increased as of June 30, 2023, compared to the prior year, mainly due to increases in accrued energy costs.

Noncurrent Liabilities
Noncurrent liabilities decreased as of June 30, 2024, from the prior year primarily as a result of amortization of the long-term portion of lease liability.

Noncurrent liabilities decreased as of June 30, 2023, from the prior year primarily as a result of a decrease in supplier security deposits pursuant to energy supply agreements.

Deferred Inflows of Resources
In 2024, CPA deferred revenue of $135,000,000 to the Fiscal Stabilization Fund pursuant to CPA’s Board approved Fiscal Stabilization Fund Policy. The funds may be used in later years if financial results were negatively impacted by uncontrollable events as described in the Policy.

Revenues and Expenses
The following table summarizes CPA’s results of operations for the years ending June 30:

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEARS ENDED JUNE 30, 2024 AND 2023
8 Total Income
Operating revenues arise from electricity sales to customers and funding to support CPA’s Power Share program. CPA reports electricity revenues, net of uncollectible account expenses, as described in the Notes to the Financial Statements.

Operating revenues increased to approximately $1,356,577,000 in FY 2023-24 from $1,167,777,000 in FY 2022-23. Revenue increased primarily as a result of increases in retail electricity rates that went into effect in July 2023, new community enrollments in March 2024, and were offset by the deferral of revenue and its transfer to the Fiscal Stabilization Fund (See Notes to the Financial Statements).

Operating revenues increased in FY 2022-23 from the prior year due to increases in retail electricity rates that went into effect in July 2022 and April 2023.

Year-over-year changes in interest income and investment income reflect changes in market interest rates, increases in investments and increases in cash balances in interest-earning accounts.

CPA invests funds consistent with its Board approved Investment Policy.

Total Expenses
Operating expenses include the cost of electricity and electric capacity used to serve CPA’s customers and meet its regulatory obligations, charges and credits levied by the CAISO, contracts with service providers, staff compensation and general and administrative expenses. Non-operating expenses consist primarily of interest and other expenses associated with borrowing agreements.

Operating expenses increased to $1,260,700,000 in FY 2023-24 from $1,088,599,000 in FY 2022-

23. The increase is mainly due to increased renewable energy purchases and higher resource adequacy costs. CPA purchases its energy supply from various resources in order to reduce market risk and maintain a balanced, renewable energy portfolio. Staffing costs increase year-over-year mainly due to CPA’s hiring of additional staff to support the organization's growth, as well as increases in employee benefits and the implementation of a staff retention incentive program.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEARS ENDED JUNE 30, 2024 AND 2023
9 Electricity costs and other operating expenses increased in FY 2022-23 from the prior year primarily due to increased energy costs, contract services, and staffing costs.

Change in Net Position
The change in net position represents the difference between total income and total expenses in a given fiscal year.

CPA’s net position increased by $106,107,000 in FY 2023-24. CPA’s net position increased by $80,294,000 in FY 2022-23 and by $67,045,000 in FY 2021-22.

CPA had a higher increase in net position in FY 2023-24 as compared to FY 2022-23 due to increased electricity sales resulting primarily from rate increases and higher interest income offset by a deferral of revenue and its transfer to the Fiscal Stabilization Fund, increased energy costs, and staffing expenses.

CPA had a higher increase in net position in FY 2022-23 as compared to FY 2021-22 due to increased electricity sales resulting primarily from rate increases and higher interest income offset by the increased costs for energy, staffing, and customer programs.

LIQUIDITY AND CAPITAL RESOURCES
CPA maintains a strong liquidity position by targeting 150 days of liquidity on hand pursuant to its Board approved Reserve Policy. Liquidity is defined as the sum of cash and cash equivalents, investments, and available bank lines of credit. CPA had 97 and 158 days of liquidity on- hand as of June 30, 2023, and 2024, respectively. Investments are made in high-quality and liquid securities pursuant to CPA’s Investment Policy.

CPA maintains a strong capital position by targeting reserves equivalent to 30% to 50% of its annual operating expenses pursuant to its Board approved Reserve Policy. Reserves are defined as the sum of the Net Position and Fiscal Stabilization Fund balance. Reserves were 20.4% and

36.6% of operating expenses as of June 30, 2023, and 2024, respectively.

CREDIT RATING
CPA manages its financial position with the objective of maintaining an investment-grade credit rating. Credit rating agencies consider quantitative (financial metrics) and qualitative (business and operating characteristics) factors when assessing credit quality. As of June 30, 2024, CPA had an issuer credit rating of A- with a stable outlook from Standard & Poor’s (S&P) Global Ratings.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEARS ENDED JUNE 30, 2024 AND 2023
10 PURCHASE COMMITMENTS AND ECONOMIC OUTLOOK
During the normal course of business, CPA enters into various agreements, including renewable energy agreements, energy storage agreements, and other agreements to purchase power and electric capacity (Resource Adequacy). CPA enters into power purchase agreements and energy supply agreements to comply with state law and voluntary targets for renewable and greenhouse gas (GHG) free products. California law established a Renewable Portfolio Standard (RPS) that requires load-serving entities, such as CPA, to gradually increase the amount of renewable energy they deliver to their customers.

In October 2015, the California Governor signed Senate Bill (SB) 350, the Clean Energy and Pollution Reduction Act of 2015, into law. SB 350 became effective January 1, 2016, and increases the amount of renewable energy that must be delivered by most load-serving entities, including CPA, to their customers from 33% of their total annual retail sales by the end of the 2017-2020 compliance period, to 50% of their total annual retail sales by the end of the 2028-2030 compliance period, and in each three-year compliance period thereafter, unless changed by legislative action.

In September 2018, the California Governor signed SB 100, the 100 Percent Clean Energy Act of 2018, into law. SB 100 increases the amount of renewable energy that must be delivered to customers by most load-serving entities, including CPA, to 60% of their annual retail sales by the end of the 2028-2030 compliance period. SB 100 also further establishes as state policy that eligible renewable energy resources and zero-carbon resources supply 100 percent of all retail sales of electricity to California end-use customers and 100 percent of electricity procured to serve all state agencies by December 31, 2045.

California’s Renewable Portfolio Standard provides compliance flexibility and waiver mechanisms, including increased flexibility to apply excess renewable energy procurement in one compliance period to future compliance periods. SB 350 requires at least 65% of the RPS procurement conducted by a retail seller, such as CPA, to come from its contracts of ten years or more in duration.

In September 2022, California Governor Newsom signed SB 1020. SB 1020 adds interim targets to the policy framework originally established in SB 100 to require renewable energy and zero-carbon resources to supply 90% of all retail electricity sales by 2035 and 95% of all retail electricity sales by 2040.

CPA enters into long-term purchase agreements to bring new solar, wind, and other renewable energy generating facilities online, to meet its regulatory RPS and GHG-free targets, and to accomplish its mission of providing renewable energy, reducing greenhouse gas emissions, serving its customers, and managing energy market risks. CPA enters into energy storage agreements to meet its obligations under the Resource Adequacy program administered by the CPUC and to better manage energy market risks. CPA manages risks associated with these commitments by aligning purchase commitments with the expected demand for electricity and assuring diversity of technologies, geographical locations, and suppliers.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEARS ENDED JUNE 30, 2024 AND 2023
11 Commitments under power purchase agreements increased to $12.9 billion as of June 30, 2024, from $8.8 billion as of June 30, 2023, consistent with CPA’s Board-approved Energy Risk Management Policy.

REQUEST FOR INFORMATION
This financial report is designed to provide CPA’s customers, creditors, and other stakeholders with a general overview of the organization’s finances and to demonstrate CPA’s accountability for the funds under its stewardship.

Please address any questions about this report or requests for additional financial information to the Chief Financial Officer, 801 S. Grand Avenue, Suite 400, Los Angeles, CA 90017.

12 BASIC FINANCIAL STATEMENTS

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

STATEMENTS OF NET POSITION
YEARS ENDED JUNE 30, 2024 AND 2023
13

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

STATEMENTS OF REVENUE, EXPENSES

AND CHANGES IN NET POSITION
YEARS ENDED JUNE 30, 2024 AND 2023
The accompanying notes are an integral part of these financial statements. 14

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2024 AND 2023
The accompanying notes are an integral part of these financial statements. 15

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2024 AND 2023
The accompanying notes are an integral part of these financial statements. 16

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
17 1. REPORTING ENTITY
Clean Power Alliance of Southern California (CPA) is a joint powers authority created on June 27, 2017. As of June 30, 2024, parties to its Joint Powers Agreement consist of the following local governments:

* La Canada Flintridge, Lynwood, and Port Hueneme are officially parties to the JPA as of March 2024. Customers in those jurisdictions will begin receiving service from CPA in October 2025.

CPA is separate from its members and derives no ongoing financial support from them. CPA is governed by a Board of Directors whose membership is comprised of elected officials representing the parties.

CPA’s mission is to provide cost-competitive electric services, reduce electric sector greenhouse gas emissions, stimulate renewable energy development, implement distributed energy resources, promote energy efficiency and demand reduction programs, and sustain long-term rate stability for residents and businesses through local control. CPA provides electric service to retail customers as a Community Choice Aggregation Program under the California Public Utilities Code (CPUC) Section 366.2.

Electricity is acquired from commercial suppliers and delivered through existing physical infrastructure and equipment managed by Southern California Edison (SCE).

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
18 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF ACCOUNTING
CPA’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements.

CPA’s operations are accounted for as a governmental enterprise fund and are reported using the economic resources measurement focus and the accrual basis of accounting – similar to business enterprises. Accordingly, revenues are recognized when they are earned, and expenses are recognized at the time liabilities are incurred. Enterprise fund-type operating statements present increases (revenues) and decreases (expenses) in total net position. Reported net position is segregated into three categories – investment in capital assets, restricted, and unrestricted.

When both restricted and unrestricted resources are available for use, CPA policy is to use restricted resources first, then unrestricted resources as needed.

CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, demand deposits, money market accounts, and investments with an original maturity of three months or less. The Statement of Net Position presents restricted cash balances separately.

INVESTMENTS
Investments reported on the Statements of Net Position are comprised of certificates of deposit with a maturity greater than three months. Certificates of deposit are not subject to fair value assessments and are stated at cost. Investments with a maturity of less than one year are shown as current assets in the Statement of Net Position.

Permitted investments are defined in CPA’s Investment Policy and include funds invested in depository accounts, certificates of deposit, money market funds, the California Asset Management Program (CAMP), and the Local Agency Investment Fund (LAIF) program operated by the California State Treasury.

PREPAID EXPENSES
Payments made to vendors for services performed beyond the end of the current fiscal year are recorded as prepaid expenses.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
19 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

DEPOSITS
Contracts to purchase energy may require CPA to provide the supplier with advance payments or security deposits. Deposits consist of collateral deposits required by CAISO and security deposits held by suppliers as required under certain energy contracts entered into by CPA. Deposits are classified as current or noncurrent assets depending on the length of time the deposits will be outstanding.

CAPITAL ASSETS AND DEPRECIATION
CPA’s policy is to capitalize furniture and equipment valued over $5,000 that is expected to be in service for over one year. Depreciation is computed according to the straight-line method over estimated useful lives of three years for electronic equipment, seven years for furniture and eight years for leasehold improvements. CPA does not own any electric generation or storage assets.

LEASE ASSETS AND LIABILITIES
CPA recognizes an asset and liability when it enters certain leasing arrangements. The leased assets are included in the capital assets and amortized over the term of the leases. The lease liabilities are established at the present value of payments expected to be paid to the lessors during the terms of the lease. CPA’s only leased assets and liabilities are related to its office premises.

SECURITY DEPOSITS FROM ENERGY SUPPLIERS
Various energy contracts entered into by CPA require the supplier to provide CPA with a security deposit. These deposits are generally held for the term of the contract or until the completion of certain benchmarks. Deposits are classified as current or noncurrent depending on the length of time the deposits will be held.

UNEARNED PROGRAM FUNDS
CPA received PowerShare program funding from the California Public Utility Commission. The amount represents funds received by CPA, but not yet spent on the PowerShare program-specific expenses.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
20 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

FISCAL STABILIZATION FUNDS
In 2020, CPA’s Board approved the Fiscal Stabilization Fund policy to allow CPA to defer revenue in years when financial results are strong for use in future years when financial results may be negatively impacted by uncontrollable events as described in the Policy. In accordance with GASB Statement No. 62, the amount deposited into the fund is shown as a reduction of operating revenues and reported on the statements of net position as a deferred inflow of resources. Deferring revenue for use in future years reduces the impact of unplanned rate changes that would otherwise be necessary to meet CPA’s financial objectives.

In 2024, CPA transferred $135,000,000 to the Fiscal Stabilization Fund. The Fiscal Stabilization Fund balance is included in cash and cash equivalents.

NET POSITION
Net position is presented in the following components:

Investment in capital assets: This component of net position consists of capital assets, lease assets, net of accumulated depreciation and amortization, and is reduced by outstanding borrowings that are attributable to the acquisition, construction, or improvement of those assets.

CPA did not have any outstanding borrowings as of June 30, 2024, and 2023 attributable to those assets.

Restricted: This component of net position consists of net assets subject to external constraints on their use imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation.

Unrestricted: This component of net position consists of a net position that does not meet the definition of “investment in capital assets” or “restricted.”

OPERATING AND NON-OPERATING REVENUE
Operating revenues include revenues derived from the provision of electricity to retail customers and program revenue earned from the delivery of program activities. Electricity sales are reported net of changes to the allowance for uncollectable accounts. Other revenue consists of revenue that is not related to sales of electricity to CPA customers.

Investment income is considered “non-operating revenue.”

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
21 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

REVENUE RECOGNITION
CPA recognizes revenue on an accrual basis. This includes invoices issued to customers during the reporting period and electricity estimated to have been delivered but not yet billed.

Management estimates that a portion of the billed amounts will be uncollectible. Accordingly, an allowance for uncollectible accounts has been recorded.

OPERATING AND NON-OPERATING EXPENSES
Operating expenses include the cost of sales and services, administrative expenses, depreciation on capital assets, and amortization of right-to-use lease assets. Expenses that do not meet this definition are reported as non-operating expenses.

ELECTRICAL POWER PURCHASED
During the normal course of business, CPA purchases electrical power from numerous suppliers.

Electricity costs include the cost of energy and capacity arising from bilateral contracts with energy suppliers as well as wholesale sales and generation credits, and load and other charges arising from CPA’s participation in the CAISO’s centralized market. The cost of electricity and capacity is recognized as “Cost of Electricity” in the Statements of Revenues, Expenses, and Changes in Net Position. To comply with the State of California’s Renewable Portfolio Standards (RPS) and other product content targets, CPA acquires RPS-eligible renewable energy evidenced by Renewable Energy Certificates (Certificates) recognized by Western Renewable Energy Generation Information System (WREGIS). CPA obtains Certificates with the intent to retire them and does not sell or build surpluses of Certificates with a profit motive. CPA purchases capacity commitments from qualifying generators to comply with the California Energy Commission’s Resource Adequacy Program. The goals of the Resource Adequacy Program are to provide sufficient resources to the CAISO to ensure the safe and reliable operation of the grid in real-time and to provide appropriate incentives for the siting and construction of new resources needed for reliability in the future.

STAFFING COSTS
CPA pays employees semi-monthly and fully pays its obligations for health benefits and contributions to its defined contribution retirement plan each month. CPA is not obligated to provide post-employment healthcare or other fringe benefits, and accordingly, no related liability is recorded in these financial statements. CPA provides compensated time off, and the related liability is recorded in these financial statements.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
22 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) In September 2023, the Board approved the Retention Incentive Program whose purpose is to retain management-level staff and promote high performance. Retention incentive amounts are approved by the Board on an annual basis and are earned over two-year periods beginning July 1, 2023.

INCOME TAXES
CPA is a Joint Powers Authority under the provisions of the California Government Code and is not subject to federal or state income or franchise taxes.

USER TAXES AND ENERGY SURCHARGES DUE TO OTHER GOVERNMENTS CPA is required by governmental authorities to collect and remit user taxes on certain customer sales. These taxes do not constitute revenues or expenses to CPA.

ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

RECLASSIFICATIONS
Certain amounts in the prior-year financial statements have been reclassified for comparative purposes to conform to the presentation of the current-year financial statements.

3. CASH AND CASH EQUIVALENTS
As of June 30, 2024, CPA maintains its cash in both interest-earning and non-interest-earning bank accounts with River City Bank, in the California Asset Management Program (CAMP) and in the California Local Agency Investment Fund (LAIF). Cash totaling $109,856,000 is in River City Bank accounts; $203,636,000 is in the CAMP account; $20,000,000 is in certificates of deposit with terms less than three months; and $17,000 is in the LAIF account.

Cash balances are subject to the Local Agency Security Program (LASP) administered by the California Department of Financial Protection and Innovation (DFPI) pursuant to California Government Code, Section 53630 through 53686. The LASP is designed to protect government agency deposits and requires banks holding agency deposits to collateralize deposits in excess of $250,000 with highly rated government securities and/or a letter of credit issued by the Federal

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
23 3. CASH AND CASH EQUIVALENTS (continued)
Home Loan Deposit Corporation (FHLDC) in amounts equal to 110% and 105% of agency deposits respectively. Government securities collateralizing agency deposits are required to be held by third-party trust companies with legal and regulatory obligations to the DFPI. The DFPI is the beneficiary of FHLDC letters of credit collateralizing agency deposits. CPA’s Board approved Investment Policy requires that when managing funds, CPA’s primary objectives, in the following order of importance, shall be to (1) safeguard the principal of the funds, (2) meet the liquidity needs of CPA, and (3) achieve a return on investment on funds in CPA’s control.

Risk is monitored on an ongoing basis.

CPA maintains its cash in CAMP to earn higher interest rates and have same-day liquidity without penalty. CAMP is a California Joint Powers Authority established in 1989 under provisions of the California Joint Exercise of Powers Act to provide public agencies with professional investment services. CAMP funds are governed by California Government Code 53600, which only allows investments in low-risk eligible securities. CAMP funds are considered government agency deposits and are subject to California’s Local Agency Protection Program, which protects agency deposits.

CPA also holds cash with LAIF, managed by the State Treasurer, for the purpose of increasing interest earnings through pooled investment activities. These funds are not registered with the Securities and Exchange Commission but are required to be invested according to the California Government Code. Participants in the pool include voluntary and involuntary participants, such as special districts and school districts for which there are legal provisions regarding their investments. The Local Investment Advisory Board (LIAB) has oversight responsibility for LAIF. LIAB consists of four members as designated by state statute.

Cash and cash equivalents include funds held in the Fiscal Stabilization Fund.

4. ACCOUNTS RECEIVABLE
Accounts receivable were as follows as of June 30:

The majority of account collections occur within the first few months following customer invoicing. CPA estimates that a portion of the billed amounts will not be collected. The allowance for uncollectible accounts at the end of a period includes amounts billed during the current and prior fiscal years.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
24 5. INVESTMENTS
During the fiscal year ending June 30, 2024, CPA purchased investments with original maturities of three months or more. As of June 30, the balance of investments was as follows:
*These are non‐negotiable certificates of deposit with original terms of more than three months and less than one year.

FAIR VALUE MEASUREMENT
GASB Statement No. 72, Fair Value Measurement and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. CPA’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. Deposits and withdrawals from CAMP and LAIF are made on the basis of $1, which is substantially equal to fair value.

As of June 30, 2024 and 2023, CPA held no individual investments subject to classification under the fair value hierarchy.

CUSTODIAL CREDIT RISK
Bank Deposits
Custodial credit risk for bank deposits is the risk that in the event of a bank failure, CPA’s deposits may not be returned to it. CPA’s bank deposits are protected by LASP as described in Note 3 and by deposit guarantees provided by the Federal Deposit Insurance Corporation (FDIC) for balances up to $250,000. CPA has not experienced any such losses in its deposit accounts.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
25 5. INVESTMENTS (continued)
Investments
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, CPA would not be able to recover the value of the investment or collateral securities that are in possession of an outside party. Investment securities are exposed to custodial credit risk if the securities are uninsured, are not registered in CPA’s name, and are held by the counterparty. CPA does not believe it is exposed to significant custodial credit risk arising from its investments in LAIF and CAMP.

6. LEASE
CPA’s lease assets are reported in accordance with Governmental Accounting Standards Board No. 87 (GASB 87).

Property Lease
CPA entered into an agreement to lease approximately 11,000 square feet of office space in Los Angeles, California, for 8 years, commencing in March 2021. Monthly base rent payments are approximately $32,000 in the first year of the lease and are subject to 3% annual rent escalations on each anniversary of lease commencement. The lease expires in February 2029. CPA also pays a pro-rata share of operating expenses and property taxes, which are not included in the measurement of the lease liability as they are variable in nature. The Company paid $23,000 and $20,000 in FY2023-24 and FY2022-2023, respectively, for those variable costs.

As of June 30, 2024, the Company has reported $1,819,000 in right-of-use (ROU) intangible assets, net of amortization, and $2,256,000 in lease liabilities related to this agreement.

Amortization expense was $383,000 and Interest Expense was $59,000 for the right to use the office space during the fiscal year.

As of June 30, 2023, the Company has reported $2,202,000 in right-of-use (ROU) intangible assets, net of amortization, and $2,659,000 in lease liabilities related to this agreement.

Amortization expense was $383,000 and Interest Expense was $68,000 for the right to use the office space during the fiscal year.

CPA has the option to extend the lease for two additional years. The table below represents the future lease principal and interest payments under this agreement.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
26 6. LEASE (continued)

Storage Contract Arrangements
In providing electricity to its customers, CPA has entered into two stand-alone energy storage and seven co-located solar and energy storage agreements, which achieved commercial operation as of June 2024. Stand-alone energy storage assets receive charging energy from the grid.

Collocated energy storage assets receive charging energy from collocated solar facilities.

Through these agreements, CPA obtains the right to control certain aspects of the nature and manner, and use of the underlying storage facilities. The monthly payments made by CPA are variable and based on the performance of the underlying assets, including the plant’s available capacity, operating charging efficiency, and the seller’s responsiveness to CPA’s charging and discharge instructions. The variable payments under energy storage agreements are recognized as part of the cost of energy in the Statement of Revenues, Expenses, and Changes in Net Position.

Variable payments for storage under stand-alone energy storage and collocated solar and energy storage agreements totaled approximately $68,534,000 and $32,023,000 in FY 2023-24 and FY 2022-23, respectively.

7. CAPITAL ASSETS
Capital asset activities for the years ended June 30, 2024 and 2023, were as follows:

Year ended June 30, Principal Interest Total
2025 426,955 49,501 476,456
2026 451,767 38,982 490,749
2027 477,612 27,860 505,472
2028 504,535 16,101 520,636
2029 395,199 3,998 399,197
$ 136,442 2,256,068 $ 2,392,510 $

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
27 6. CAPITAL ASSETS (continued)
Depreciation and amortization expenses are included under general and administration on the Statements of Revenues, Expenses and Changes in Net Position.

8. DEBT
JP Morgan Chase Bank Credit Facility
In September 2021, CPA entered into an $80 million Revolving Credit Agreement with JP Morgan Chase. The Revolving Credit Agreement provides a revolving borrowing and letter of credit facility which can be used for working capital purposes and to post collateral.

In June 2023, CPA amended the credit agreement with JP Morgan to increase the size of the facility to $160 million and extend the expiry of the agreement from October 31, 2023, to March 31, 2024. In March 2024, the Board approved an extension of the maturity date of CPA’s Credit Agreement with JPM to March 31, 2026, from March 31, 2024.

As of June 30, 2024, CPA had no loans outstanding under the credit facility and is in compliance with credit covenants. Loan principal activity and balances were as follows for the following direct borrowings:

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
28 9. DEFINED CONTRIBUTION RETIREMENT PLAN
The Clean Power Alliance of Southern California Plan (Plan) is a defined contribution retirement plan established by CPA to provide benefits at retirement to its employees. The Plan is administered by Nationwide Retirement Solutions. Currently, the employer contribution is 6% of the employee’s salary plus an additional 4% employer match contribution for a maximum annual employer contribution to the Plan equal to 10% of the employee’s salary. As of June 30, 2024, there were 76 plan members. CPA contributed $1,274,000 and $994,000 during the years ended June 30, 2024 and 2023, respectively. Plan provisions and contribution requirements are established and may be amended by the Board of Directors.

10. RISK MANAGEMENT
CPA is exposed to various insurable risks of loss related to torts, theft of, damage to, and destruction of assets, and errors and omissions. During the year, CPA purchased insurance policies from investment-grade commercial carriers to mitigate risks that include those associated with earthquakes, theft, general liability, errors and omissions, and property damage. Settled claims have not exceeded CPA’s commercial liability insurance coverage in any of the past four years. There were no significant reductions in coverage compared to the prior year.

On July 12, 2018, CPA’s Board adopted the Energy Risk Management Policy (ERMP). The ERMP establishes CPA’s Energy Risk Program and applies to all power procurements and related business activities that may impact the risk profile of CPA. The ERMP documents the framework by which CPA’s staff and consultants will identify and quantify risk, develop and execute procurement strategies, develop controls and oversight, monitor, and measure and report on the effectiveness of the CPA’s Energy Risk Program. Risks covered by the ERMP include market price risk, credit risk, volumetric risk, operational risk, opt-out risk, legislative and regulatory risk, and other risks arising from operating as a Community Choice Aggregation and participating in California energy markets. The Board approved updates to the ERMP in July 2019, July 2020, July 2021, July 2022, July 2023 and July 2024.

CPA maintains other risk management policies, procedures, and systems that help mitigate and manage credit, liquidity, financial, regulatory, and other risks not covered by the ERMP.

Credit guidelines include a preference for transacting with investment-grade counterparties, evaluating counterparties’ financial condition, and assigning credit limits as applicable. These credit limits are established based on risk and return considerations under terms customarily available in the industry. In addition, CPA enters into netting arrangements whenever possible and, where appropriate, obtains collateral and other performance assurances from counterparties.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
29 11. PURCHASE COMMITMENTS

POWER AND ELECTRIC CAPACITY
In the ordinary course of business, CPA enters into various power purchase and energy storage agreements in order to acquire renewable and other energy and electric capacity. The price and volume of purchased power may be fixed or variable. Variable pricing is generally based on the market price of electricity at the date of delivery. Variable volume is generally associated with contracts to purchase energy from as-available resources such as solar, wind and hydro-electric facilities.

CPA enters into power purchase and energy storage agreements in order to comply with state law and elective targets for renewable and greenhouse gas (GHG) free products and to ensure stable and competitive electric rates for its customers.

The following table represents the expected, undiscounted contractual commitments for energy storage, power, and electric capacity outstanding as of June 30, 2024:

Totals are rounded to the nearest thousand.

As of June 30, 2024, CPA had non-cancellable contractual commitments to contract and professional service providers through December 31, 2027, for services yet to be performed. Fees associated with these contracts are based on volumetric activity and are expected to be approximately $15.1 million.

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
30 12. JOINT VENTURE
In July 2022, CPA’s Board of Directors authorized CPA to join California Community Choice Financing Authority (CCCFA) as a Founding Member. CPA joined CCCFA in September 2022 and participates in the Joint Powers Agreement with CCCFA along with other Founding Members Central Coast Community Energy, Ava Community Energy, MCE, and Silicon Valley Clean Energy. Other CCAs are Associate Members, receiving benefits of CCCFA but are not represented on the CCCFA Board of Directors.

CCCFA was formed as a conduit issuer to assist its members by undertaking the financing or refinancing of energy prepayments that can be financed with tax-advantaged bonds on behalf of one or more of the members by, among other things, issuing or incurring bonds and entering into related contracts with its members. No debt, liability, or obligation of CCCFA is considered a debt, liability, or obligation of any member of CCCFA. Any debt or liability incurred by CCCFA on behalf of a member to prepay for renewable energy is not a debt or liability of that member.

Furthermore, the assets of CCCFA in the form of prepaid energy or reserves held by the respective bond trustees for any prepayment transaction undertaken on behalf of a member do not constitute an asset or reserve of that member.

In February 2023, CCCFA issued a first set of Clean Energy Revenue Bonds on behalf of CPA in the par amount of $998,780,000, in June 2023 issued a second set of Clean Energy Revenue Bonds on behalf of CPA in the par amount of $958,290,000. The proceeds were used to finance energy purchases that will flow to CPA over a term of 30 years. CPA will purchase energy from CCCFA in the same manner as CPA purchases energy from other suppliers. The outstanding purchase commitments related to these financings are included in Note 11.

Each member of CCCFA is responsible for paying an equal portion of CCCFA’s general and administrative operating costs as determined by its board. During the years ending June 2024 and 2023, CPA contributed approximately $30,000 and $68,000 to CCCFA to assist in its operating activities.

CCCFA was created on June 25, 2021, and its financial statements of CCCFA are available online at http://www.cccfa.org/keydocuments.html.

12. FUTURE GASB PRONOUNCEMENTS
The requirements of the following GASB Statements are effective for future fiscal years ending after June 30, 2024: GASB has approved GASB No. 101, Compensated Absences, GASB No. 102, Certain Risk Disclosures, GASB No. 103, Financial Reporting Model Improvements, and GASB No. 104, Disclosure of Certain Capital Assets

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
31 Management is evaluating the effect of the implementation of these statements.

13. SUBSEQUENT EVENTS
Clean Energy Project Revenue Bonds
On July 11, 2024, the Board adopted Resolutions authorizing the issuance of up to three Clean Energy Project Revenue Bond transactions of up to $1.5 billion each, subject to certain parameters, with a total amount not exceeding $4.5 billion across all transactions. One of the three authorized issuances, as described below, was completed.

On August 27, 2024, CCCFA issued the Series 2024B Bond on behalf of CPA in the par amount of $1,524,180,000. The proceeds were used to finance energy purchases that will flow to CPA over a term of 29 years pursuant to the transaction’s Clean Energy Purchase Contract (CEPC).

CPA will purchase energy from CCCFA in the same manner as CPA purchases energy from other suppliers. Consistent with the above-noted Board Resolution, the amounts payable by CPA under the Clean Energy Purchase Contract were limited to the equivalent of a prepay bond par amount of $1.5 billion.

On September 5, 2024, the Board adopted a Resolution authorizing the amendment of the CEPC executed in relation to the Series 2024B Bonds to permit CPA to purchase a 30th year of energy supply as originally intended, equating the energy volumes and term of the CEPC with the final aggregate principal amount of the Bonds and term thereof.

The Series 2024B prepay transaction is expected to provide energy cost savings to CPA of $93 million over the initial eight-year period of the bond, or approximately $11.6 million annually.

New Community Enrollments
In October 2025, CPA will begin providing electric service to an estimated thirty-three thousand additional customer accounts located in La Cañada Flintridge, Lynwood, and Port Hueneme.

2023/24 YTD
Budget
2023/24 YTD
Actual
2023/24 YTD
Budget Variance
(Under) Over
2023/24 YTD
Actual / Budget
% 2023/24 Budget
2023/24
Remaining
Budget
2023/24
Remaining
Budget %
Operating revenues
Revenue - electricity, net $ 1,576,284,820 $ 1,489,775,404 $ (86,509,416) 95% 1,576,284,820 $ $ 86,509,416 5% Revenue transferred from/(to) Fiscal Stabilization Fund - (135,000,000) (135,000,000) - - Other revenues 3,238,179 1,801,749 (1,436,430) 56% 3,238,179 1,436,430 44% Total operating revenues 1,579,523,000 1,356,577,153 (222,945,846) 86% 1,579,523,000 87,945,846 6% Energy costs
Energy procurement 1,243,338,000 1,219,546,896 (23,791,104) 98% 1,243,338,000 23,791,104 2% Total energy costs 1,243,338,000 1,219,546,896 (23,791,104) 98% 1,243,338,000 23,791,104 2% Operating revenues less energy costs 336,185,000 137,030,257 (199,154,743) 41% 336,185,000 64,154,743 19% Operating Expenditures
Staffing 20,072,000 18,049,088 (2,022,912) 90% 20,072,000 2,022,912 10% Technical services 1,809,000 1,151,523 (657,477) 64% 1,809,000 657,477 36% Legal services 1,054,000 740,695 (313,305) 70% 1,054,000 313,305 30% Other professional services 1,975,000 792,595 (1,182,405) 40% 1,975,000 1,182,405 60% Communications and outreach 2,157,000 1,585,983 (571,017) 74% 2,157,000 571,017 26% Mailers 1,023,000 634,899 (388,101) 62% 1,023,000 388,101 38% Billing data manager 11,262,000 10,855,347 (406,653) 96% 11,262,000 406,653 4% SCE services 2,165,000 2,207,635 42,635 102% 2,165,000 (42,635) -2% Customer programs 9,643,000 2,265,763 (7,377,237) 23% 9,643,000 7,377,237 77% General and administrations 4,501,000 2,869,737 (1,631,263) 64% 4,501,000 1,631,263 36% Total operating expenditures 55,661,000 41,153,267 (14,507,733) 74% 55,661,000 14,507,733 26% Operating income 280,524,000 95,876,991 (184,647,009) 34% 280,524,000 49,647,009 18% Non-operating revenues (expenditures) Interest income 4,314,000 10,877,122 6,563,122 252% 4,314,000 (6,563,122) -152% Finance and interest expense (1,563,000) (647,400) 915,600 41% (1,563,000) (915,600) 59% Total non-operating revenues (expenditures) 2,751,000 10,229,722 7,478,722 372% 2,751,000 (7,478,722) -272% Change in net position 283,275,000 106,106,712 (177,168,288) 37% 283,275,000 42,168,288 15% Other uses Capital outlay 378,000 255,920 (122,080) 68% 378,000 122,080 32% Depreciation and Amortization (719,000) (626,862) 92,138 87% (719,000) (92,138) 13% Total other uses (341,000) (370,943) (29,943) 109% (341,000) 29,943 -9% Change in fund balance $ 283,616,000 $ 106,477,655 $ (177,138,345) 38% $ 283,616,000 $ 42,138,345 15%

CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA

BUDGETARY COMPARISON SCHEDULE
FOR YEARS ENDED JUNE 30, 2024

Presentation of
FY 2023-24 Financial Results
November 7, 2024

Summary
CPA received a “clean” audit opinion of its FY 2023-24 financial results from its Auditor, Baker Tilly.

CPA increased its net position and liquidity by $106 million and $257 million respectively and added $135 million to the Fiscal Stabilization Fund (see slide 4).

Days Liquidity on Hand and the Reserve Percentage (Net position plus Fiscal Stabilization Fund / Annual Expenses) increased to 158 days and to 37% respectively. CPA’s Reserve Policy targets are 120 days and 30-50% respectively.

CPA’s FY 2023-24 financial results benefited from the following:
• An increase in retail rates on July 1, 2023 and new community enrollments in March 2024
• Increase in investments and cash balances and higher interest rates improved interest income

2 Summary - Continued
CPA financial results were negatively impacted by:
• Abnormally cool weather for much of half of FY2023-24, which reduced electricity demand and associated revenue.
• Significant increase in 2023 Market Price Benchmark by California Public Utilities Commission, which increased certain renewable energy costs .

CPA was within budget limits for all budget expense line items with the exception of SCE service expenses ($42,600 or 2% over budget).

3 Fiscal Stabilization Fund
In September 2020, CPA's Board approved a Fiscal Stabilization Fund (“Fund”) policy, enabling the organization to defer revenue during strong financial years and use it during downturns caused by uncontrollable events.

The Fund can help CPA to address rate shocks, comply with financial covenants, and meet annual budget goals.

The CEO is authorized to make transfers to and from the Fund if Net Position increases would either exceed or be below 4% of revenues without a transfer from the Fund.

In FY2019-20, CPA deferred $27 million of revenue to the Fund, which were used in FY2020-21 to offset increased costs arising from extreme heat events of summer 2020.

In FY2023-24, CPA transferred $135 million to the Fund, to absorb future high impact, low frequency losses. This is consistent with the agency and stakeholder expectations vis-a-vis CPA’s A- Issuer Credit Rating.

4 Balance Sheet Components, as of June 30:
5 A B C D E F
2024 % Total 2023 % Total % Change
ASSETS
1 Current assets
2 Cash and cash equivalents $ 333,509,421 45% 132,786,879 $ 32% 151% 3 Investments 60,000,000 8% - 0% -
4 Accounts receivable, net of allowance 143,167,706 19% 123,259,054 30% 16% 5 Accrued revenue 95,217,865 13% 87,229,664 21% 9%
6 Other receivables 11,502,941 2% 595,202 0.1% 1833%
7 Interest receivable 1,404,260 0.2% 233,214 0.1% 502%
8 Prepaid expenses 91,292,917 12% 46,152,849 11% 98%
9 Deposits 2,331,418 0.3% 15,951,306 4% -85%
10 Restricted cash 0% 1,200,000 - 0.3% -100%
11 Total current assets 738,426,529 99.7% 407,408,168 99.3% 81% 12 Noncurrent assets
13 Capital assets, net of depreciation 571,073 0.1% 544,973 0.1% 5% 14 Intangible - right-to-use lease asset 1,818,835 0.2% 2,201,743 0.5% -17% 15 Deposits 0.01% 88,875 88,875 0.02% 0%
16 Total noncurrent assets 2,478,783 0.3% 2,835,591 0.7% -13% 17 Total assets $ 740,905,312 100% 410,243,759 $ 100% 81%

Balance Sheet Components, as of June 30:
6 A B C D E F
2024 % Total 2023 % Total % Change

LIABILITIES
18 Current liabilities
19 Accounts payable $ 3,045,901 1% 7,008,961 $ 4% -57%
20 Accrued cost of electricity 246,869,951 89% 159,985,884 85% 54% 21 Other accrued liabilities 4,165,262 1% 2,774,283 1% 50% 22 User taxes and energy surcharges due to other governments 10,750,873 4% 8,570,857 5% 25% 23 Security deposits from energy suppliers 3,961,500 1% 194,700 0.1% 1935% 24 Unearned program funds 4,054,673 1% 4,352,484 2% -7% 25 Lease liability, current 426,955 0.2% 403,141 0.2% 6% 26 Total current liabilities 273,275,114 98% 183,290,311 97% 49% 27 Noncurrent liabilities
28 Supplier security deposits 3,146,852 1% 3,149,860 2% -0.1% 29 Lease liability, noncurrent 1,829,113 1% 2,256,068 1% -19% 30 Total noncurrent liabilities 4,975,965 2% 5,405,928 3% -8% 31 Total liabilities $ 278,251,079 100% 188,696,239 $ 100% 47%

7 Balance Sheet Components, as of June 30:

A B C D E F
2024 % Total 2023 % Total % Change
32 Fiscal Stabilization Fund 135,000,000 100% - - 0%

NET POSITION
33 Investment in capital assets $ 133,840 0.04% $ 87,507 0.04% 53% 34 Restricted for collateral - 0% 1,200,000 0.54% -100% 35 Unrestricted 327,520,392 99.96% 220,260,013 99.42% 49% 36 Total net position $ 327,654,232 100% 221,547,520 $ 100% 48%

DEFERRED INFLOWS OF RESOURCES

Select Financial Indicators
Working capital, equity and available cash increased largely as a result of the increase in net position. Days Liquidity on Hand increased from 97 to 158 days as a result of an increase in cash.

The current ratio and net margin were increased as a result of increase in cash and electricity sales.
8 Jun-24 Jun-23 % Change Description
Working Capital 465,151,413 224,117,857 108% Current Assets less Current Liabilities Current Ratio 2.7 2.2 23% Current Assets divided by Current Liabilities Day Sales Outstanding 35 39 -10% Accounts receivable divided by Gross Revenue multiplied by 365 Equity 462,654,232 221,547,520 109% Net Position plus Fiscal Stabilization Fund Equity to Assets % 62% 54% Equity (Net Position + FSF) divided by Total Assets Available Cash 386,401,069 129,442,319 199% Unrestricted cash and cash equivalents less supplier deposits Available Line of Credit 159,853,000 159,853,000 0% Total Line of Credit less Borrowing and Letters of Credit Total Liquidity 546,254,069 289,295,319 89% Sum of Available Cash and Line of Credit Days Liquidity on Hand (TTM) 158 97 63% Total Liquidity divided by trailing 12-month expenses divided by 365 Gross Margin 10% 10% Operating revenue less energy cost divided by operating revenue Net Margin 8% 7% Change in net position divided by operating revenue Reserve % 37% 20% Net Position plus Fiscal Stabilization Fund divided by total operating expenses

Budget to Actual Analysis
Operating revenues were $223 million or 14% below budget.

Other revenues arise primarily from funding received from the California Public Utilities Commission (CPUC) to offset Power Share Program costs. 9 A B C D E
2023/24 YTD
Budget
2023/24 YTD
Actual
2023/24 YTD
Budget Variance
(Under) Over
2023/24 YTD
Budget
Variance %
Operating revenues
1 Revenue - electricity, net $ 1,576,284,820 $ 1,489,775,404 $ (86,509,416) -5% 2 Revenue transferred from/(to) Fiscal Stabilization Fund - (135,000,000) (135,000,000) 3 Other revenues 3,238,179 1,801,749 (1,436,430) -44%
4 Total operating revenues 1,579,523,000 1,356,577,153 (222,945,846) -14%

Budget to Actual Analysis
Energy procurement costs were 2% lower than budget. Energy costs were negatively impacted by an increase in the 2023 Market Price Benchmark promulgated by CPUC in early October 2023 which increased certain renewable energy costs. These increased costs were partially offset by lower than forecast energy consumption. 10 A B C D E
2023/24 YTD
Budget
2023/24 YTD
Actual
2023/24 YTD
Budget Variance
(Under) Over
2023/24 YTD
Budget Variance
%
Energy costs
5 Energy procurement 1,243,338,000 1,219,546,896 (23,791,104) -2% 6 Total energy costs 1,243,338,000 1,219,546,896 (23,791,104) -2% 7 Operating revenues less energy costs 336,185,000 137,030,257 (199,154,743) -59%

Budget to Actual Analysis
Operating expenses were 26% under the budget due primarily to non-utilization of contingencies, conservative use of funds, the performance of services later in the year than budgeted, and lower staffing costs.

CPA was within budget limits for all budget expense line items with the exception of SCE service expenses ($42,600, or 2% over the budget).
11 A B C D E
2023/24 YTD
Budget
2023/24 YTD
Actual
2023/24 YTD
Budget Variance
(Under) Over
2023/24 YTD
Budget Variance
%
Operating Expenditures
8 Staffing 20,072,000 18,049,088 (2,022,912) -10%
9 Technical services 1,809,000 1,151,523 (657,477) -36% 10 Legal services 1,054,000 740,695 (313,305) -30%
11 Other professional services 1,975,000 792,595 (1,182,405) -60% 12 Communications and outreach 2,157,000 1,585,983 (571,017) -26% 13 Mailers 1,023,000 634,899 (388,101) -38%
14 Billing data manager 11,262,000 10,855,347 (406,653) -4% 15 SCE services 2,165,000 2,207,635 42,635 2%
16 Customer programs 9,643,000 2,265,763 (7,377,237) -77% 17 General and administrations 4,501,000 2,869,737 (1,631,263) -36% 18 Total operating expenditures 55,661,000 41,153,267 (14,507,733) -26% 19 Operating income 280,524,000 95,876,991 (184,647,009) -66%

Budget to Actual Analysis
Interest income exceeded the budget due to increases in investments and cash balances in high interest-earning accounts.
12 A B C D E
2023/24 YTD
Budget
2023/24 YTD
Actual
2023/24 YTD
Budget Variance
(Under) Over
2023/24 YTD
Budget Variance
%
Non-operating revenues (expenditures)
20 Interest income 4,314,000 10,877,122 6,563,122 152%
21 Finance and interest expense (1,563,000) (647,400) 915,600 -59% 22 Total non-operating revenues (expenditures) 2,751,000 10,229,722 7,478,722 272% 23 Change in net position 283,275,000 106,106,712 (177,168,288) -63% Other uses
24 Capital outlay 378,000 255,920 (122,080) -32%
25 Depreciation and Amortization (719,000) (626,862) 92,138 -13% 26 Total other uses (341,000) (370,943) (29,943) 9%
27 Change in fund balance $ 283,616,000 $ 106,477,655 $ (177,138,345) -62%

Thank You! Questions?

Budget to Actual Analysis Detail
Other professional services were 60% under base budget due to collection services, Mercer, and strategic planning budget that were not utilized and lower than budgeted in information technology, regulatory, and accounting support services during the fiscal year.

Communications and outreach and Customer Programs were 26% and 77% under budget respectively mainly due to new customer programs taking additional time to roll out. For the most part these budgeted expenses were rolled forward to FY 2024/25, such as in the case of budgeted expenses for Energized Communities, CALeVIP, and Power Response.

Mailer expenses were 38% under budget mainly due to some mailing expenses being expended under the general and administration budget line item. Additionally, delays in customer program implementations reduced the need for the mailer budget.

General and administration expenses were 36% under the budget mainly due to less staff travel, and professional development and conference fees than were anticipated for FY2023-

24.

14 Customer Programs Budget v. Actual
15 Customer Program 2023-2024
Budget
2023-2024
Actual
Variance
Over/(Under) Variance % 2024-2025 Budget Variance Reason Current Status EV Charger Incentives 1,240,892 70,000 (1,170,892) -94% 452,784 Rebate Disbursement Timing Program closed to new applicants by California Energy
Commission; Reserved funds to be disbursed by Sept 2025 or returned to CPA
Energy Team 370,000 -- (370,000) -100% 292,000 Timing of Program Launch Launched September 2024 Workforce Development* 515,571 -- (515,571) -100% 305,000 Reconsideration of Program
Approach / Expenditure
Treatment
Actual FY23/24 expenditures of $61k netted against Other Revenue; Voyager Scholarship on-going; Next phase of
funding under consideration
Energized Communities (Local
Government Program) 2,710,000 39,308 (2,670,693) -99% 2,825,445 Timing of Program Launch Fleet and Building Electrification launched March 2024; Innovation Fund launched October 2024; Community EV
Charging under development
Sun Storage Battery Rebate
and Low-Income Solar VPP 962,500 54,050 (908,450) -94% 2,800,000 Timing of Program Launch / Customer Adoption
Sun Storage Rebate on-going; Low Income Solar VPP in
contract negotiations
Power Response 1,427,483 491,588 (935,895) -66% 1,059,500 Customer Adoption Program on-going; Low adoption rate among commercial and multifamily property owners
Power Share 2,065,098 1,270,302 (794,796) -38% 2,481,728 New Customer Enrollment
Paused Due to Regulatory
Uncertainty
Program expansion approved by CPUC for January 2025
Reach Codes Technical
Assistance 351,180 340,516 (10,664) -3% 291,780 -- On-going; Program to sunset December 2025 Managed Charging -- -- -- -- 400,000 -- Launching Q1 2025 EV Charging Technical
Assistance -- -- -- -- 425,000 -- RFP expected in Q1 2025 Efficient Cooling for Low Income
Customers -- -- -- -- 1,500,000 -- Consumer approach launched October; Property owner technical assistance launching in Q2 2025 Power Ready -- -- -- -- 375,000 --
Program on-going; In FY 23/24 Power Ready budgeted
under Tech Services and Cost of Energy; In FY 24/25
budgeted under Programs and Cost of Energy
Total 9,642,724 2,265,763 (7,376,961) -77% 13,208,237

* Workforce Development to be recategorized in FY25/26
Staff Report – Agenda Item 7
To: Board of Directors
From: Karen Schmidt, Senior Director, Rates & Strategy
Reviewed By: Matthew Langer, Chief Operating Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: 2025 Power Charge Indifference Adjustment (PCIA) and Rates Outlook
Date: November 7, 2024

RECOMMENDATION
Receive presentation on 2025 PCIA and rates outlook.

ATTACHMENT

1. 2025 PCIA and Rates Outlook Presentation

2025 PCIA/SCE Rates: First Look
November 7, 2024

Summary
On October 1 SCE implemented a delivery rate increase and a temporary 12-month generation rate reduction, worsening CPA’s competitive position
SCE filed its October Energy Resource Recovery Account (ERRA) Update on October 14, an amended ERRA proposal on October 21, and a further amendment on October 23. One of these proposals (or something in the middle) will determine PCIA rates for CPA customers and generation rates for SCE bundled customers starting Q1 2025
The timing and net impact of the rate changes is uncertain and likely to remain so until the CPUC makes a decision on the ERRA proposal, likely in mid to late December o The expected outcomes range from a reduction in the PCIA and a return to the Board’s July target total bill comparisons (best case), to a PCIA that is flat and a further worsening of CPA’s competitive position (worst case)
o CPA is responding to SCE’s ERRA filing and advocating for the best outcome consistent with past precedent Given the uncertainty of both outcome and timing, the earliest feasible time for the Board to consider any rate adjustment, if needed, prior to the normal FY 2025-2026 rate setting cycle is February 2025 A proposal to set total bill comparisons for the three communities that will begin CPA service in October 2025 will be brought to the Board for consideration in December. A favorable 2025 PCIA for these communities under either ERRA scenario, plus SCE’s planned October 2025 generation rate increase, will allow CPA to offer those new communities competitive bill comparisons in line with CPA’s historic targets

The SCE generation rate reduction is a temporary 12-month reduction triggered by past $742 million overcollection of generation revenues. The reduction will be reversed in October 2025, with SCE projecting a generation rate increase of 18% that month.

The reduction (and subsequent reversal) does not impact CPA customer bills but does impact CPA’s competitive position
The delivery rate increase, resulting from additional wildfire and vegetation management costs, raised residential bills about $5 per month SCE lowered generation rates and raised
delivery rates on Oct 1
Energy Product July 2024 Target Comparison to SCE October 2024 Comparison to SCE SCE Base $186 $182
Lean $184 -1% $189 +3.6%
Clean $186 0% $191 +4.6%
100% Green $196 +5% $200 +9.7%
Average Total Residential Bill

2025 ERRA Forecast October Update
SCE’s October ERRA update is the first detailed look at SCE’s forecasted 2025 PCIA and bundled generation rates
This year SCE submitted two ERRA proposals, one using the same methodology as in recent years and one using an alternate methodology for allocating Resource Adequacy (RA) costs
The alternate methodology would have SCE account for local RA at the local RA benchmark price, even though the local RA is being used to meet SCE’s system RA obligation – effectively increasing PCIA rates and lowering bundled generation rates SCE is requesting a January 1, 2025 implementation date but will delay implementation to March 1 or later unless the CPUC votes on a decision in early December, which is unlikely
Staff has conducted an initial analysis of both scenarios, looking at:
1) The impact on customer bills based on the changing PCIA and delivery rates 2) Expected total bill comparisons based on updated SCE generation rates plus the new 2025 PCIA

2025 ERRA Forecast Delays
The main driver for the delay and added complexity in the 2025 ERRA Forecast proceeding is the CPUC’s reaction to increasing RA prices
The forecast RA market price benchmark, which is used to calculate the PCIA, increased from $15.23/kW-month in 2024 to $42.54/kW-month in 2025
Milestone Original Due Date Actual Date
CPUC Publishes Market Price
Benchmarks October 1
Published: October 2
First Revision: October 4
Second Revision: October 10
CPUC seeks proposals to address RA
benchmark N/A October 8
SCE Files October ERRA Update October 11
Filed: October 14
Alternate version: October 21
Revised Version: October 23
Proposed Decision November 19 TBD
CPUC votes on Final Decision December 19 TBD
SCE implements new rates January 1, 2025 TBD

PCIA/Bill Impacts
Based on SCE’s standard methodology, the proposed PCIA rates in 2025 would continue to be negative and decline another 1.4 cents, providing CPA residential customers with a 2.8 cent line-item bill credit
o The PCIA decrease would nearly offset SCE’s expected 7.7% delivery rate increase in January, keeping CPA customer bills relatively flat compared to current rates Under SCE’s proposed alternate methodology, the proposed PCIA rates in 2025 would remain relatively flat while the SCE delivery rate increase would increase residential bills about 5% The 2023 PCIA will decrease under either scenario, reducing residential customer bills in the three communities that began service this year
Rate Product Current
Scenario 1 Scenario 2
January 2025 % Change January 2025 % Change
Lean $189 $190 +0.9% $198 +4.7%
Clean $191 $192 +0.9% $199 +4.7%
100% Green $200 $202 +0.9% $209 +4.5%
Average Total CPA Residential Bill

Competitive Impacts
Based on SCE’s standard methodology, SCE’s average generation rates would remain relatively flat in 2025 compared to current October 1 rates
o Combined with the drop in PCIA rates, this would return total residential bill comparisons to levels close to the targets set by the Board during FY24/25 rate setting earlier this year Under SCE’s alternate methodology, SCE generation rates would decrease 6.5%, worsening CPA’s competitive position, though both CPA and bundled SCE total bills will go up as a result of increased delivery rates
Total bill comparisons for residential customers in the communities that began service with CPA in 2024 would be close to the Board’s FY 24/25 bill comparison targets under scenario 2, or more favorable under scenario 1
Energy
Product
July 2024
Target
Comparison
to SCE October 2024 Comparison
to SCE
Scenario 1 Scenario 2
January 2025 Comparison
to SCE January 2025 Comparison
to SCE
SCE Base $186 $182 $192 $187
Lean $184 -1% $189 +3.6% $190 -0.6% $198 +5.7%
Clean $186 0% $191 +4.6% $192 +0.4% $199 +6.7%
100% Green $196 +5% $200 +9.7% $202 +5.2% $209 +11.7%
Average Total Residential Bill*
*Comparisons are based on representative estimated 2018 PCIA vintage rate schedules, average customer usage and load profiles and projected SCE rates as of January 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.

Next steps
CPA, CalCCA, and the other CCAs in SCE territory are responding to SCE’s ERRA filing, advocating for SCE to maintain its original approach to RA accounting (Scenario 1) on both procedural and technical grounds
Actual SCE generation rates and the new PCIA are expected to be approved by the CPUC in December and implemented in Q1 2025
Staff is beginning to consider CPA’s rate setting strategy for fiscal year 2025/26 which begins next July
o Staff will return in the spring with rate scenarios that consider CPA’s Reserve Policy targets, CPA’s competitive position and other factors
o An interim rate adjustment, if warranted, would be discussed with the Executive Committee in January and the Board in February
At the November Executive Committee meeting, staff will seek guidance on a recommended rate setting approach for the communities beginning service in October 2025, for the Board’s consideration in December

Discussion

What is driving SCE proposed rate changes
CPUC’s Market Prices Benchmarks for energy, RPS, and RA which are used in SCE’s PCIA and generation rate calculations moved substantially in October o Compared to the 2024 forecast, the final 2024 system RA price increased by 88%, and the 2025 forecast price increased by 179%
o The final 2024 RPS price increased by 72%, and the 2025 forecast price increased by 124% o These are partially offset by ~35% lower market forward energy prices The net effect of these changes is to lower the PCIA rate and slightly decrease SCE’s bundled generation costs
2025
Forecast Final Forecast
On-Peak Energy $/MWh $68.30 TBD $41.54
Off-Peak Energy $/MWh $62.59 TBD $41.54
RPS $/MWh $31.73 $54.56 $71.24
System RA $/kW-mo $15.23 $28.65 $42.54
Local RA $/kW-mo $8.81 $10.26 $11.10
Flex RA $/kW-mo $9.12 $12.89 $14.16
2024
CPUC SCE Market Price Benchmarks
as of October 4, 2024

CPA has maintained long-term competitiveness
though electricity bills continue to rise
$0.05
$0.07
$0.09
$0.11
$0.13
$0.15
$0.17
$0.19
$0.21
$0.23
$0.25
1/1/2019 7/1/2019 1/1/2020 7/1/2020 1/1/2021 7/1/2021 1/1/2022 7/1/2022 1/1/2023 7/1/2023 1/1/2024 7/1/2024 $/kWh
Residential Electricity Rates 2019 – 2024*
SCE Delivery (Equal
for All Customers)
SCE Generation -
Base Rate
CPA Generation -
100% Green Power
CPA Generation -
Lean Power
*Annualized rates based on
2023 average monthly customer
usage. Generation rates
inclusive of PCIA, Competition
Transition Charge, and
Generation Municipal
Surcharge. Delivery rates
inclusive of Wildfire Fund

Staff Report – Agenda Item 8
To: Board of Directors
From: Analuz Mendoza, Deputy Clerk of the Board
Reviewed By:

Approved By:

Nancy Whang, General Counsel
Ted Bardacke, Chief Executive Officer
Subject: Nomination Period for Executive Committee Ventura County At-Large Position Date: November 7, 2024

RECOMMENDATION
Open nomination for Executive Committee Ventura County At-Large Position for the remainder of the term, ending June 30, 2026.

BACKGROUND
Per CPA’s Bylaws, the Board Officers (Board Chair and two Vice-Chairs), Committee Chairs, and the Immediate Past Chair comprise seven of the ten positions on CPA’s Executive Committee. The two Vice-Chairs are automatic appointments comprised of the two Supervisors representing Los Angeles and Ventura County. The Committee Chairs are named by the Board Chair. The remaining three Executive Committee positions are At-Large: (i) two representing L.A. County Members and (ii) one representing Ventura County members.

Per the Bylaws, each member of the Executive Committee, except for the immediate past chair, must be a Regular Director.

DISCUSSION

Board of Directors Item 8
Director Betsy Stix, Ventura County’s current At-Large Member, is not running for re-election and will no longer be able to serve on the Executive Committee. Per the Bylaws, “[w]henever a vacancy occurs for an At-Large Executive Committee member, during an existing member’s term of office, the Board shall hold an election to fill such vacancy within 90 days of the date of the vacancy . . .” In order to commence the election process for this position, Chair Klein Lopez will open the nomination period at the November 7, 2024, Board meeting. The nomination period for the At-Large position will close on Wednesday, November 20, 2024 at 5 p.m. Nominations may be submitted from the floor at the November 7, 2024 Board meeting or via email to [email protected] up until the November 20, 2024 deadline.

The Ventura County At-Large position must be nominated and elected by Regular Directors representing jurisdictions in Ventura County. The number of nominees for the position will determine the election procedures. The election for the At-Large position will occur at the December 5, 2024, Board meeting.

Per the Bylaws, the At-Large Executive Committee members serve a two-year term, concurrent with the term of the Board Officers. The Board Officers were elected or appointed to a two-year term beginning on July 1, 2024 and ending on June 30, 2026.

Accordingly, the term for this Executive Committee At-Large position will expire on June 30, 2026.

ATTACHMENT

1. Current Eligible Directors for Ventura County At-Large Position

Board of Directors Item 8
Current Eligible Directors for Ventura County
At-Large Position on Executive Committee
Ventura County
Renee Delgado Moorpark
Bert Perello Oxnard
Jenny Crosswhite Santa Paula
Rocky Rhodes Simi Valley
David Newman Thousand Oaks
Liz Campos City of Ventura

Management Report

To: Board of Directors
From: Ted Bardacke, Chief Executive Officer
Subject: Management Report
Date: November 7, 2024
2028 Olympics Preparations
In collaboration with LA28, the organizer of the 2028 Olympics, CPA is beginning to plan for its role in the 2028 Olympic and Paralympic Games. CPA sits on the “Games Energy Council”, the overall energy coordinating body that includes other major utilities (LADWP, SCE, SoCal Gas, etc.) along with representatives of the official host city (City of Los Angeles). Given the aspirations of LA28 to rely on clean transportation options during the month-long event and the potential of the games to provide a boost to transportation electrification efforts around the region, within the Games Energy Council, CPA has been active in the Mobility Electrification Working Group. (Other Working Groups include Security, Temporary Infrastructure, and Legacy, among others).

CPA’s role in powering athletic venues remains uncertain but will come into focus over the next 12 months. Venues in the City of Carson will host four sports – Field Hockey, Rugby Sevens, Track Cycling, and Tennis; however, the power provider structure within the Cal State Dominguez Hills property on which the games venues are located is complex with multiple different providers serving different customer loads. Meanwhile, the City of Santa Monica remains in negotiations with LA28 over whether Santa Monica will host Beach Volleyball. No other LA28 athletic venues are located in CPA service territory, nor are the Athlete Village (UCLA) and Media Center (USC).

Beyond potential athletic venues, CPA is expected to support LA28 in other ways.

Depending on the evolution of the transportation electrification efforts, CPA may be called on to power large electric vehicle charging sites and will likely see increased electricity demand from the portions of the Metro Rail system that gets it power from CPA. CPA may also be responsible for powering other major support locations, such as staging areas,

Board of Directors Management Report
satellite parking, food prep, etc. In addition, large municipal facilities in CPA’s service territory may be invited into the LA28 effort in a variety of ways. CPA staff will be in touch with member agencies should these opportunities arise.
2025 Resource Adequacy Year-Ahead Filing
On October 30, CPA filed its 2025 Year-Ahead Resource Adequacy (RA) filing showing full compliance with its 2025 RA reliability requirements. The Year-Ahead RA filing requires Load Serving Entities to show they have procured 90% of their RA requirements for the following year. The remainder of the requirements are demonstrated in Month-Ahead RA filings that are submitted six weeks before the beginning of each month.

Meeting CPA’s RA requirements has been increasingly difficult (and expensive) in recent years, but the 2025 RA requirements were particularly challenging to meet because the CPUC implemented a new RA framework called Slice of Day (SOD). SOD requires LSEs to show the ability to serve 117% of expected load in each hour of the peak day of each month (i.e. 24 hours for each month), compared to the old RA framework that required LSEs to show compliance just in the peak hour of each month (i.e. one hour for each month). The added complexity of the SOD framework, which requires 24 times as many compliance measurements as the previous framework, has created numerous market and implementation challenges. CPA and CalCCA have been active in the CPUC rulemaking and implementation process to shape SOD and CPA’s procurement team has been successful at tracking and meeting the new requirements.

Monthly Financial Performance
In August 2024 CPA recorded a net loss of $11.7 million, $11.5 million better than the budgeted net loss of $23.2 million for the month. Energy revenues were slightly higher than forecast, while energy costs were lower than budgeted, mostly due to non-utilization of contingencies. CPA’s financial performance also benefitted from operating expenses that were below budget and gains in interest income. For the first two months of the fiscal year, CPA has experienced a $8.9 million decline in its net position, significantly better than its budgeted net loss of $35.2 million. The monthly financial dashboard for July is included as Attachment 1.

Board of Directors Management Report
Customer Participation Rate and Opt Actions
As of October 28, 2024, CPA’s overall participation rate was 93%, unchanged from the previous month. CPA had 1,044,116, up 729 customers compared to the end of September. Opt-outs for the month – 535 accounts through October 28 – were down from previous months and consistent with previous averages in Q4 of the calendar year. New accounts (“move-ins”) were lower than closed accounts (“move-outs”) by 353 customers in October. 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 down in October, consistent with a drop-off in customer account activity. Through October 28, CPA received 2,568 calls in the month compared to an average of 4,186 calls per month in the previous quarter. Call center performance improved, with 96% of calls answered within 45 seconds compared to 93% in the previous month and an average wait time of 7 seconds, an improvement from 13 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. 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

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
Non-Operating Income: interest income arising from deposits and investments net of borrowing costs and fees Investments: liquid and high-quality securities with maturities of 91 days or more Cash and Cash Equivalents: Includes bank deposits and high quality and liquid securities with maturities of less than 90 days Year to date (YTD): Represents the fiscal period beginning July 1, 2024 YTD
August
2024
Financial Dashboard
Note: Numbers may not sum up due to rounding.

Active Accounts
1,043,388
Participation Rate

93.0%
YTD Sales Volume
2,223 GWh
Aug Volume
1,117 GWh
Agr/Oth
2% Com-Lg
18%
Com-Sm
27%
Res
53%
176
353
$1585
0 200
400
600
800
1000
1200
1400
1600
1800
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
in 000,000's
Operating Revenue (YTD)
Actual Budget
$5
-$4
$192
-$100
-$50
$0
$50
$100
$150
$200
$250
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Revenue Less Energy Cost (YTD)
Actual Budget
August Year-to-Date
in $000,000's Actual Budget Variance % Actual Budget Variance % Energy Revenues 176.9 175.6 1.3 1% 352.8 346.7 6.1 2%
Cost of Energy 186.2 194.7 -8.4 357.2 373.8 -16.6
Net Energy Revenue -9.3 -19.1 9.8 -4.4 -27.0 22.7
Operating Expenses 3.9 5.0 -1.1 7.4 9.9 -2.6
Operating Income -13.2 -24.0 10.8 -11.8 -37.0 25.2
Non-Operating Income 1.5 0.9 0.6 69% 2.9 1.8 1.1 60%
Change in Net Position -11.7 -23.2 11.5 -8.9 -35.2 26.3 In August 2024 CPA’s net position fell by $11.7 million, $11.5 million less than the budgeted reduction in net position of $23.2 million.

August 2024 revenues were $176.9 million, $1.3 million or 1% higher than FY 2024/25 budget. August cost of energy was $186.2 million, $8.4 million lower than the FY 2024/25 budget primarily due to the non-utilization of contingencies. For the year-to-date, CPA’s net position fell by $8.9 million, $26.3 million less than the budgeted reduction in net position of $35.2 million primarily due to warmer than normal weather and higher revenue in July 2024 and the non-utilization of contingencies. Operating costs were $2.6 million 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.

As of August 30th, 2024, CPA had unrestricted cash, cash equivalents, and investments of $436 million, and $159.853 million available in its bank line of credit representing 163 Days Liquidity on Hand. CPA is financially sound and in compliance with its bank and other credit covenants.

Jurisdiction Preferred Energy Option Active Accounts Participation % Lean % Clean % 100% Green % AGOURA HILLS 100% Green 8,029
ALHAMBRA 100% Green 34,218
ARCADIA Lean 22,676
BEVERLY HILLS 100% Green 18,648
CALABASAS 100% Green 9,640
CAMARILLO 100% Green 28,728
CARSON Clean 29,488
CLAREMONT 100% Green 12,703
CULVER CITY 100% Green 19,236
DOWNEY Clean 36,879
HAWAIIAN GARDENS Clean 3,656
HAWTHORNE 100% Green 28,498
HERMOSA BEACH 100% Green 9,852
LOS ANGELES COUNTY 100% Green 299,474
MALIBU 100% Green 7,036
MANHATTAN BEACH 100% Green 15,330
MONROVIA 100% Green 15,761
MOORPARK Clean 11,410
OJAI 100% Green 3,497
OXNARD 100% Green 55,833
PARAMOUNT Clean 15,801
REDONDO BEACH 100% Green 33,304
ROLLING HILLS ESTATES 100% Green 3,527
SANTA MONICA 100% Green 55,314
SANTA PAULA 100% Green 9,056
SIERRA MADRE 100% Green 4,937
SIMI VALLEY Lean 43,577
SOUTH PASADENA 100% Green 11,601
TEMPLE CITY Lean 12,672
THOUSAND OAKS 100% Green 44,465
VENTURA 100% Green 44,669
VENTURA COUNTY 100% Green 32,935
WEST HOLLYWOOD 100% Green 26,553
WESTLAKE VILLAGE Lean 3,732
WHITTIER Clean 31,381
TOTAL

89.4% 3.3% 0.4% 96.3%

95.3% 2.0% 0.7% 97.3%

95.1% 99.8% 0.1% 0.2%

97.3% 2.2% 0.1% 97.8%

93.3% 3.1% 0.3% 96.6%

89.7% 2.0% 0.1% 97.9%

95.7% 1.5% 98.3% 0.2%

91.0% 3.3% 0.3% 96.4%

94.9% 4.2% 1.2% 94.7%

94.9% 1.7% 98.2% 0.1%

95.5% 1.3% 98.4% 0.3%

97.1% 0.9% 1.4% 97.8%

92.4% 2.7% 0.6% 96.7%

94.4% 2.3% 31.7% 65.9%

94.6% 3.1% 0.4% 96.5%

95.4% 3.1% 0.4% 96.6%

91.0% 3.9% 0.5% 95.6%

85.5% 3.3% 96.1% 0.6%

89.0% 6.5% 1.2% 92.3%

92.6% 4.0% 0.9% 95.2%

96.7% 0.3% 99.1% 0.6%

96.0% 2.4% 0.1% 97.5%

92.1% 8.0% 1.6% 90.5%

94.5% 3.4% 0.8% 95.8%

91.1% 2.3% 0.2% 97.5%

91.8% 5.8% 1.5% 92.7%

89.4% 99.6% 0.1% 0.2%

94.7% 4.0% 0.7% 95.3%

95.6% 99.8% 0.1% 0.2%

83.4% 8.1% 1.5% 90.4%

89.0% 4.8% 1.5% 93.7%

84.5% 6.9% 1.1% 92.0%

96.7% 2.6% 0.4% 97.0%

88.1% 99.5% 0.0% 0.5%

93.8% 2.0% 97.8% 0.2%
CUSTOMER STATUS REPORT
PARTICIPATION BY CITY AND COUNTY
October 28, 2024
ACTIVE ACCOUNTS BY ENERGY PRODUCT
Energy Option Active Accounts Percentage
100% Green
Clean
Lean
TOTAL 100.0%

10.7%

21.6%

67.7%
1,044,116
111,962
225,386
706,768
1,044,116 93.0%

Project Purpose Month Notes
Drifter
Amendment to Energy Storage Agreement to extend the termination deadline while parties identify mutually beneficial solutions October
2024
Desert Sands I
Amendment to Power Purchase Agreement to facilitate the transfer of the site to a backup facility contemplated in the contract, Key Energy Storage, and allow for a delay in COD in return for a price decrease September
2024
Wilmington 2
Amendment to Power Purchase Agreement to allow for additional payments of liquidated damages to extend the COD
September
2024
Dominquez
Amendment to Power Purchase Agreement to allow for additional payments of liquidated damages to extend the COD
September
2024
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

Vendor Purpose Month NTE Amount Status Notes
Ross Associates Management coaching services Oct-24 $16,000 Active Perkins Coie
Amendment to Legal Services
Agreement for RFO support Oct-24 $70,000 Active
Actium LLP Legal services for general liability Oct-24 $55,000 Active Thorn Run Partners LLC Federal lobbying services Sep-24 $125,000 Active Sigman Computing Analytics platform Sep-24 $30,800 Active JustFOIA PRA request management software Sep-24 $9,835 Active Salesforce
Additional license for CRM
subscritpion
Sep-24 $3,733 Active
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 Non-Energy Contracts Executed Under Chief Executive Officer Authority Rolling 12 months. Open contracts shown in bold.

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 S&P Global
Economic & demographic data
subscription
Dec-23 $15,000 Active
Joanalyn Moyle Minute writing services Dec-23 $15,000 Active Energy Exemplar
Additional license for forecasting
software
Nov-23 $9,720 Active
Crown Castle Fiber LLC
Office dedicated internet access
service
Nov-23 $18,600 Active
Windstream Services, LLC Office telephone service Sep-23 $12,924 Active SBCCOG Satellite Board meeting venue Jan-23 $50/hr Active