MINUTES
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, November 7, 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 Annie Mendoza, Deputy Clerk of the Board, conducted roll call.
PLEDGE OF ALLEGIANCE
Chair Klein Lopez led the pledge of allegiance.
Roll Call
1 Agoura Hills Deborah Klein Lopez Chair Present
2 Alhambra Jeff Maloney Director Present
3 Arcadia Michael Cao Alternate Present
4 Beverly Hills Julian Gold Alternate Present
5 Calabasas Ed Albrecht Director Remote
6 Camarillo Susan Santangelo Director Remote
7 Carson Reata Kulcsar Alternate Remote
8 Claremont Jeremy Swan Alternate Present
9 Culver City Joe Susca Alternate Remote
10 Downey Horatio Ortiz Director Remote
11 Hawaiian Gardens Ramie L. Torres Alternate Remote
12 Hawthorne Alex Monteiro Director Present
13 Hermosa Beach Justin Massey Director Present
14 Los Angeles County Lindsey Horvath Vice Chair Present 15 Malibu Absent
16 Manhattan Beach Amy Howorth Director Remote
17 Monrovia Edward Belden Director Present
18 Moorpark Absent
19 Ojai Michelle Ellison Alternate Remote
20 Oxnard Absent
21 Paramount Michelle Muller Alternate Remote
22 Redondo Beach Absent
23 Rolling Hills Estates Debby Stegura Director Remote
24 Santa Monica Gleam Davis Director Present
25 Santa Paula Jenny Crosswhite Director Present
26 Sierra Madre Robert Parkhurst Director Present
27 Simi Valley Rocky Rhodes Director Present
28 South Pasadena Arpy Kasparian Alternate Present
29 Temple City Ed Chen Director Present
30 Thousand Oaks David Newman Director Remote
31 City of Ventura Absent
32 Ventura County Vianey Lopez Vice Chair Present
33 West Hollywood John Erickson Director 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.
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 NotTo-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 Motion: Director Parkhurst, Sierra Madre
Second: Director Howorth, Manhattan Beach
Vote: The consent agenda was approved by roll call vote. Director Stegura abstained from the vote.
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
Xico Manarolla, Electrification Program Manager, presented an overview of CPA’s workforce development efforts and proposed changes to the current programs to support pre-apprenticeship recruitment and revamp the Voyager Scholarship Program for targeted community colleges. Mr. Manarolla discussed Phase 1 and 2 funding outcomes, listing funding partners, funding amounts, subject matter taught, and the number of students who participated or graduated.
Staff’s recommendations are consistent with the Board's direction to facilitate building and transportation electrification and support union apprenticeship programs. Seven PPAs have provided a total of $2.6 million in funding, and CPA has provided $779,990 in funding to date. Of that, more than $2.5 million is still available. Staff has received feedback indicating that students need help getting into pre-apprenticeship programs, focusing on addressing obstacles such as childcare, the cost of fees, and readiness to pass the entrance exam.
Mr. Manarolla described the Multi-Craft Core Curriculum (MC3) Pre-Apprenticeship Program, a 10-week, 240-hour boot camp using a standardized curriculum. These programs provide a clear path to high-wage jobs for underserved communities, and CPA funding would go directly to student support.
Populations targeted include women and previously incarcerated and gang-affected individuals.
Staff recommends that CPA work with the Flintridge Center in Pasadena. The center has run workforce development programs since 2007 and uses the MC3 curriculum. A three-year MOU with the center costs $435,000 and provides stipends for 30 students per year, 90 in total. Staff also recommends Women in Non-Traditional Employment Roles (WINTER) as a partner to serve women ages 18 to 45, focusing on those who are low-income, formerly incarcerated, aging out of foster care, and of color. Located in the City of Commerce, WINTER places 84 percent of students in apprenticeship programs within six months. This MOU costs $558,000 for three years and stipends 20 students per year, 60 in total.
For the Voyager scholarships, staff recommends increasing incentives for students enrolling in energy-related courses from $1,000 to $3,000 for full-time students and $1,500 for part-time students. The proposal is to add Mt. San Antonio and Cerritos community colleges to the program and to spend $270,000 in total for two-year agreements with nine Community Colleges, starting in 2026. The seven schools already under contract must exhaust current funding to receive new funding. Mr.
Manarolla described the funding allocation broken down over the next three years and explained that there is $1.3 million remaining for new programs or expanding the current ones.
Mr. Manarolla explained that the Voyager program is marketed through community colleges. CPA can publicize the pre-apprenticeship programs using newsletters, community outreach, and member agencies communications. The next steps would be to negotiate funding agreements with each entity, establish targets to ensure success, explore similar MC3 options in Ventura County, and eventually return to the Board for approval of MOUs. Today’s vote would be to approve the Clean Energy Workforce Development Investment Plan Phase 3, with a total funding of $1,323,000.
Public Comment: Joe Sullivan, representing IBEW Local 11 and the National Electrical Contractors Association of Greater Los Angeles, supported the plan updates and praised the proposed partners. Mr. Sullivan thanked CPA for helping people get into apprenticeships on the front-end and for creating jobs on the back end through its projects and high labor standards.
Director Massey proposed El Camino College as a partner. Director Gold suggested that staff keep track of scholarship recipients after they are employed to gauge success and encouraged CPA to publicize the organization’s involvement in this community-focused program. Vice Chair Horvath supported the proposal, especially focusing on women involved in justice and collaboration with the construction trades. Director Crosswhite inquired about continued training for municipal workers already on the job when new energy technologies emerge and new skills are required. Staff responded that IBEW and other unions quickly provide training to ensure their members are hired for projects and that it would explore a continuing education program for CPA member agency staff.
In response to Director Belden’s inquiry about Grid Alternatives and solar panel installers. Staff responded that CPA has funded Grid Alternatives through its Community Benefits grant program and is interested in finding other opportunities to work together. Director Cao suggested Pasadena City College as a partner and asked about the involvement of workforce development boards. Staff responded that both Flintridge and WINTER benefit from state funds coming through local workforce development programs and that, in general, MC3 coursework is promoted through workforce development boards. Director Erickson suggested that LGBTQ populations and the organizations that serve them also be considered for job training programs.
Director Newman supported the proposal and will forward contact information to staff for a program that helps gang-impacted and at-risk youth in Thousand Oaks.
Director Albrecht suggested Pierce College as a partner. Director Pacheco supported the increased scholarships because, as a long-time community college teacher, she witnessed the limited resources of most students.
Motion: Vice Chair Horvath, Los Angeles County
Second: Director Erickson, West Hollywood
Vote: Item 5 was approved by a roll call vote
Information Item
6. Receive Presentation on CPA’s Financial Results for Fiscal Year 2023-2024 and Fiscal Year Budget to Actual Report
David McNeil, Chief Financial Officer, presented a summary of the financial results for the fiscal year 2023-2024. CPA received an A- credit rating from Standard and Poor’s, based on performance to date and projections for the upcoming year. CPA increased its net position and liquidity by $106 million and $257 million, respectively, and added $135 million to the Fiscal Stabilization Fund. CPA’s financial results benefited from increased retail rates, new community enrollments, increased investments, and higher interest rates. Negative impacts on CPA’s financials were due to reduced electricity demand, resulting in lower-than-expected revenues and increased renewable energy costs.
Mr. McNeil presented CPA’s balance sheet components as of June 30, 2024, noting that the organization does not have fixed assets but rather cash and cash equivalents and accounts receivable. Mr. McNeil further stated that CPA’s operating expenses were under budget except for SCE’s service fees, which reflect billing and administrative services and are calculated under regulatory requirements.
In response to Director Parkhurst’s question about unspent monies in the customer programs category, CEO Ted Bardacke stated that budget approval from the Board for programs is sought based on a best-case scenario; in the past fiscal year some programs did not launch on the timeline expected and that customer adoption was slowed than was hoped for. Staff clarified for Director Parkhurst how PPA security deposits are collected, returned, and accounted for. Director Gold inquired about customers who have not paid their electricity bills going back to the pandemic; staff responded that most commercial accounts are resolved but that SCE continues to work on a large backlog of residential customers who still owe money.
Director Erickson introduced the idea of CPA Board members receiving a stipend for their service, and staff responded that it would require a policy decision and that it would be discussed in the context of next fiscal year’s budget. In response to Vice Chair Lopez’s question about EV charging incentives and unspent customer program funding, staff said rebates are paid when a charging system is completely installed and that funds are held in escrow after the initial application.
Vice Chair Lopez also suggested working with air pollution control districts to ensure funds are dispersed, particularly if funds remain unspent. Director Susca asked about improving CPA’s credit rating based on reserve amounts, and staff responded that agencies consider various factors, including reserves, but there are no specific targets that would trigger a credit rating upgrade.
7. Receive Presentation on 2025 Power Charge Indifference Adjustment and Rates Outlook
Matthew Langer, Chief Operating Officer, summarized SCE’s October 2024 rate change which increased the delivery rates and lowered their generation rates. SCE also filed its Energy Resource Recovery Account (ERRA) forecasted 2025 PCIA and bundled generation rates. PCIA rates for CPA customers are unknown until the CPUC decides on the ERRA proposal later this year. CPA is responding to SCE’s ERRA filing and advocating for SCE to maintain its original approach to RA accounting. The earliest the CPA Board could adjust rates with any certainty before 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. Staff expects CPA to offer those new communities competitive bill comparisons in line with CPA’s historical targets.
Mr. Langer explained that SCE’s rate reduction will be reversed in October 2025, with SCE projecting a generation rate increase of 18 percent. The reduction or increase does not impact CPA customer bills but does affect CPA’s competitiveness. 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, which would increase PCIA rates and lower bundled generation rates. The forecast RA market price benchmark increased from $15.23/kW-month in 2024 to $42.54/kW-month in 2025.
SCE requested 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 staff believes is unlikely.
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. The PCIA decrease would nearly offset SCE’s expected 7.7 percent delivery rate increase in January, keeping CPA customer bills relatively flat compared to current rates. Under SCE’s proposed alternate methodology, the PCIA rates in 2025 would remain relatively flat, while the increase in the SCE delivery rate would increase residential bills by about 5 percent. Mr. Langer presented a competitive impacts chart, looking at both the standard and alternative methodologies.
Staff is considering CPA’s rate-setting strategy for FY 2025-2026 and will return in the spring with rate scenarios that consider CPA’s Reserve Policy targets and competitive position. If warranted, an interim rate adjustment would be discussed with the Executive Committee in January.
Staff clarified for Director Belden that CCA customers comprise about 20 percent of SCE’s customer base. In response to Director Massey’s question about the different rate changes, staff stated that the delivery rate changes will affect both SCE and CPA customers. Vice Chair Horvath asked about whether SCE’s overcollection approach too frequently puts CPA’s interest at risk; staff responded that in CPA’s experience, SCE has under-collected rates more frequently than over-collected them.
Election
8. Open Nomination for Executive Committee Ventura County At-Large Position for the Remainder of the Term ending June 30, 2026.
Chair Klein Lopez announced that Director Stix is leaving the Board of Directors and will no longer serve as the Ventura County at-large representative on CPA's Executive Committee. Chair Klein Lopez opened the nomination period, which will remain open until 5:00 p.m. on Wednesday, November 20, 2024. The person elected at the December 5th Board of Directors meeting will serve the remainder of Director Stix’s term, ending June 30, 2026. Vice Chair Lopez nominated Director Crosswhite.
COMMITTEE CHAIR UPDATES
On behalf of Director Hicks, Chair of the Legislative Committee, Chair Klein Lopez reported that the committee reviewed the 2025 legislative platform, which will come to the Board in December.
Director Parkhurst, Chair of the Energy Committee, reported that the Review Team examined QC 15 projects. The Energy Committee then met to review and approve the team’s recommendations. CAISO now allows load-serving entities like CPA to prioritize projects in the process.
MANAGEMENT REPORT
Ted Bardacke, CEO, stated that CPA has met its RA obligations, which will support the grid's reliability. Mr. Bardacke reported that the 2028 Olympics in Los Angeles will require preparation for energy needs, which are predicted to be equivalent to seven Super Bowls daily for a month. Mr. Bardacke will serve on the LA 28 Games Energy Council, focusing on power for venues and electric transportation.
BOARD MEMBER COMMENTS
None
REPORT FROM THE CHAIR
None
ADJOURN
Chair Klein Lopez adjourned the meeting at 4:11 p.m.