Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, November 21, 2024
1:30 p.m.
REVISED
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
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting remotely at the following locations:
Hotel Dena
303 Cordova Street
Pasadena, CA 91101
Camarillo City Hall
Office of the Mayor
601 Carmen Drive
Camarillo, CA 93010
Hyatt Regency Minneapolis
1300 Nicollet Mall
Minneapolis, MN 55403
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Carson City Hall
City Manager’s Conference Room
701 East Carson Street
Carson, CA 90745
Hawthorne City Hall
Administrative Office
4455 W. 126th Street
Hawthorne, CA 90250
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
Ojai City Hall
Conference Room
401 S Ventura St.
Ojai, CA 93023
Beverly Hills City Hall
Council Office, 4th Floor
455 N. Rexford Drive
Beverly Hills, 90210
Alhambra City Hall
Conference Room
111 S. First St.
Alhambra, CA 91801
REMOTE LOCATIONS UPDATED
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 Committee 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 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 Committee 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 ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from October 24, 2024, Executive Committee Meeting
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
3. Review Draft Agenda for the December 5, 2024, Board of Directors Meeting
4. Recommend to the Board of Directors for the Following Fiscal Year 2025/26 Rate Approach for New Communities Joining CPA In October 2025:
(a) Set the New Member Communities’ Rates at the Total Bill Comparison Targets as Specified in Slide 5 of Attachment 1, Which is Designed to Cover the Customers’ Cost of Service and Contribute to CPA’s Financial Goals, (b) Set a Subset Rate for the New Communities that Does Not Exceed the Bill Comparison Levels for Each Subset Rate Schedule as of July 1, 2024 as Specified in Slide 6 Of Attachment 1, Which Is Designed to Cover the Subset Customers’ Cost of Service and Contribute to CPA's Financial Goals, and, (c) Authorize Staff to Update Rates for the New Communities Periodically as Needed When SCE Rates Change, to Maintain These Total Bill Comparison Levels Throughout FY 2025/26.
5. Recommend to the Board of Directors the following Staff Recommendations:
(a) Approve the Update to Salary Grades for 2025 to Accommodate Labor Market Changes, Inflation, and Maintain CPA’s Competitiveness as Specified in Slide 6 of Attachment 1,
(b) Approve the Revisions to CPA’s Employee Handbook that Clarify Administrative Procedures and Ensure Compliance with Current and New Laws, and, (c) Provide Input on Whether to Include Caregiver Leave Benefits to CPA’s Benefits Offerings.
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT REGULAR MEETING ON DECEMBER 12, 2024
Public Records: Public records that relate to any item on the open session agenda for a Committee 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 Committee. 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.
Staff Report – Agenda Item 1
To: Executive Committee
Subject: Approve Minutes from the October 24, 2024, Executive Committee Meeting
Date: November 21, 2024
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Executive Committee Item 1
MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, October 24, 2024
1:30 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
Clean Power Alliance Office
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Sierra Madre City Hall
Council Chambers
232 W. Sierra Madre Blvd.
Sierra Madre, CA 91024
Camarillo City Hall
Office of the Mayor
601 Carmen Drive
Camarillo, CA 93010
Ventura County Government Center
CEO Point Mugu Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Ojai City Hall
Conference Room
401 S Ventura St.
Ojai, CA 93023
Beverly Hills City Hall
Council Office, 4th Floor
455 N. Rexford Drive
Beverly Hills, CA 90210
Alhambra City Hall
Conference Room
111 S. First St.
Alhambra, CA 91801
Hawthorne City Hall
Administrative Office
4455 W. 126th Street
Hawthorne, CA 90250
CALL TO ORDER & ROLL CALL
Chair Klein Lopez called the meeting to order at 1:30 p.m., and Annie Mendoza, Deputy Clerk of the Board, conducted roll call.
Roll Call
Agoura Hills Deborah Klein Lopez Chair Remote
Alhambra Jeff Maloney Committee Member Remote
Executive Committee Item 1
Beverly Hills Julian Gold Immediate Past Chair Absent
Camarillo Susan Santangelo Committee Member Remote
Carson Cedric Hicks Committee Member Remote
Hawthorne Alex Monteiro Committee Member Remote
Los Angeles County Rita Kampalath Alternate Remote
Ojai Betsy Stix Committee Member Remote
Sierra Madre Robert Parkhurst Committee Member Remote
Ventura County Vianey Lopez Vice Chair Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from September 19, 2024, Executive Committee Meeting Motion: Committee Member Parkhurst, Sierra Madre
Second: Committee Member Santangelo, Camarillo
Vote: The consent agenda was approved by a roll call vote
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
Ted Bardacke, Chief Executive Officer, informed the Committee that Deputy Clerk of the Board Annie Mendoza will perform clerk duties while Clerk of the Board Gabby Monzon is on leave. Mr. Bardacke also thanked Directors Parkhurst and Maloney for their extra time on the RFO Review Team and regular committee obligations to review energy contract proposals.
3. Review Draft Agenda for the November 7, 2024, Board of Directors Meeting Mr. Bardacke reported that CPA had to terminate a contract with a vendor that provides communication and marketing services. A contract amendment for an existing contractor who will be able to take on additional tasks will be presented to the Board. Mr. Bardacke also discussed possible regular agenda items for power purchase agreements and a low-income solar and storage program.
Under informational items, Mr. Bardacke reported that the Finance Committee would be meeting with an auditor to review financial results for the Fiscal Year 2023-2024, noting that CPA’s reserves have increased to 37 percent of annual operating expenses, exceeding the minimum board target of 30 percent; days liquidity on hand is at 158 days, exceeding the minimum of 120 days; and CPA has transferred $135 million for the Fiscal Stabilization Fund, which had been at zero for the past several years. The Board will also receive information about the 2024-2025 Rates Outlook.
Executive Committee Item 1
Regarding the Executive Committee, Mr. Bardacke shared that Director Stix of Ojai will not be running for re-election and, therefore, cannot continue serving on CPA’s Executive Committee. Director Stix thanked CPA staff and expressed confidence that the person taking her place will contribute to CPA’s success. Mr. Bardacke thanked her for her high level of engagement as a CPA Board member. Chair Klein Lopez added that the City of Ojai is a model of sustainable living and effective environmental policy-making.
4. Receive Presentation on Workforce Development and Provide Feedback on Funding Pre-Apprenticeship Programs and Expanding Voyager Scholarships Mr. Bardacke gave a brief background of CPA’s workforce development efforts, explaining that staff consulted with IBEW and discovered the electrician’s union needed support recruiting people into apprenticeship programs. Other research found that community college scholarships were not being distributed at the expected level because they did not cover all fees and it was unclear if they would last beyond one year.
Xico Manarolla, Program Manager of Electrification, stated that staff put together a plan to expand workforce development offerings and to update CPA’s Voyager scholarship program for community colleges. The Board's 2020 direction was to provide training resources to facilitate building and transportation electrification and support union apprenticeships. Mr. Manarolla noted that CPA has provided $779,900 in funding to date and that there is still $2,570,010 available from the workforce funding volunteered by developers like Voyager. This amount includes $750,000 in 2026 from SunZia.
Staff recommended that CPA work with the Flintridge Center, which 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. Women in Non-Traditional Employment Roles (WINTER) is also recommended as a partner to serve women ages 18 to 45, with a focus 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 recommended 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 colleges altogether, 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 there is $1.3 million remaining for new programs or expanding the current ones.
Committee Member Hicks suggested adding Los Angeles Harbor College to the program and that students be provided with transportation assistance. Staff responded that transportation and other obstacles, such as childcare and attaining a driver’s license, were being addressed. In response to Chair Klein Lopez’s question about the promotion of the program, staff stated that the schools and the
Executive Committee Item 1
training centers primarily do the marketing and that referrals come from probation and parole officers, foster care, and social services agencies but that CPA would work with the program implementers to find ways to collaborate on marketing within CPA communities.
5. Receive Presentation on FY 2024-25 Rates Outlook
Matt Langer, Chief Operating Officer, provided information on SCEs proposed rate changes and impacts to CPA customers. Staff recommended that the Board wait until February, when rates are finalized, to adjust CPAs rates before the normal 2025-2026 rate-setting cycle. The overall concern is that lower rates from SCE will make CPA less competitive. Staff expect a favorable 2025 PCIA to result in competitive rate offers to the three new CPA member agencies during enrollment.
SCE’s generation rate reduction is temporary for 12 months and will increase by 18 percent in October 2025. The delivery rate increase of $5 per month results from wildfire and vegetation management and is paid by both SCE and CPA customers on the delivery side.
Mr. Langer described the implications of SCE’s 2025 Energy Resource Recovery Account (ERRA) generation rate-setting process and stated that different methodologies will affect how the PCIA rates may increase. CPA, CalCCA, and other CCAs in SCE territory are responding to SCE’s ERRA filing and advocating for the original RA accounting on both procedural and technical grounds.
Staff clarified for Chair Klein Lopez that CPA will be filing a brief in response to SCE’s filing. In response to Committee Member Parkhurst’s question about the timing of the judgment and response time, staff clarified that the CPUC will likely decide in December and that SCE will need until March to implement the rate changes. He also asked about PCIA rates for different cities, and staff responded that 98 percent of CPA’s customers came on board in 2018 and have the same PCIA rate.
Committee members came to a consensus that no interim rate action was needed at least until CPUC issues were sorted out and final PCIA and SCE rates for 2025 were determined.
COMMITTEE MEMBER COMMENTS
None
ADJOURN
Vice Chair Lopez adjourned the meeting at 2:53 p.m.
Staff Report – Agenda Item 2
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Oral Update from the CEO on CPA Operations
Date: November 21, 2024
The CEO will provide an oral update on CPA operations.
Staff Report – Agenda Item 3
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Review Draft Agenda for the December 5, 2024, Board of Directors Meeting
Date: November 21, 2024
Staff will provide an overview of the proposed agenda items for the December 5, 2024, Board of Directors meeting for review and feedback from the Executive Committee. The draft Board agenda is attached to this staff report. Information on the main items for Board consideration is provided below.
CONSENT AGENDA
The following items are recommended for inclusion on the Consent Agenda of the December Board meeting.
Approve Proposed 2025 Legislative and Policy Platform
Staff will request Board approval of CPA’s Proposed 2025 Legislative & Regulatory Policy Platform (“Platform”). The updated Platform will continue to provide guidance for CPA’s legislative and regulatory advocacy efforts, particularly in the areas of affordability and local control, power resources planning and procurement, customer programs, data access, and diversity, equity, and inclusion. At its October 30, 2024, meeting, the Legislative & Regulatory Committee reviewed and recommended to the Board that it approve the Platform. A copy of the Proposed Platform is attached.
The Proposed 2025 Platform includes revisions that streamline language and add two distinctive advocacy areas – infrastructure financing and billing transparency. These additional principles will direct CPA staff to pursue administrative and legislative initiatives
Executive Committee Item 3
that support alternative approaches to financing energy infrastructure that reduce costs for all customers, and to support initiatives that increase customer billing transparency, while defending against measures that may increase confusion. The platform also clarifies and consolidates several principles.
Peak Management Pricing (PMP) Tariff
Staff will request Board approval of Resolution 24-12-077 expanding CPA’s Peak Management Pricing (PMP) program to allow for participation by residential customers.
The PMP program mirrors the Southern California Edison (SCE) Critical Peak Pricing (CPP) program.
Per new California Public Utilities Commission (CPUC) rules, to be eligible for battery storage incentives through the statewide Self-Generation Incentive Program (SGIP), customers must be enrolled in a qualifying demand response (DR) program. Currently, the only DR program approved by the CPUC and available to residential customers in SCE’s service territory is CPP, which is not available to unbundled (e.g. CPA) customers.
Since the PMP program mirrors CPP, staff anticipate that CPUC will approve PMP as a qualifying DR program once PMP has been expanded to include residential customers, who make up the majority of SGIP applicants. In parallel, staff will be advocating that the CPUC include CPA’s own Power Response program as a qualifying program for customers taking advantage of SGIP rebates.
2025 Meeting Schedule
Staff will provide a 2025 Meeting Schedule for full Board meetings, the Executive Committee, the three policy committees, and the Community Advisory Committee. The meeting times and cadence remain unchanged from this year; in total, CPA is slated to hold 67 meetings in 2025 that are subject to the Brown Act. The draft 2025 meeting schedule is attached.
Executive Committee Item 3
REGULAR AGENDA
The following items are recommended for inclusion on the Regular Agenda of the December Board meeting.
Power Purchase Agreements/Energy Storage Agreements/Resource Adequacy Agreements and Update on Long-Term Power Contracting
Staff is in the process of negotiating several long-term contracts from the 2024 Clean Energy and Reliability RFO, approved by the Energy Committee. Should the negotiations be successful, the contracts will be presented to the Board for consideration.
If and when these contracts are presented to the Board, staff will provide context via an overview of advances in long-term contracting activities. This update will give insight into various metrics related to CPA’s energy and resource adequacy portfolios, how CPA has met and exceeded state compliance requirements, what projects and procurement opportunities are in the pipeline, and the challenges and opportunities that lie ahead. The Board will also hear about the impact CCAs overall have had across California and the joint contributions to the energy landscape.
Low Income Solar & Storage Virtual Power Plant
The Low-Income Solar and Storage Program aims to leverage innovative strategies to overcome the barriers that low-income customers face when trying to install solar and battery storage. This program will connect low-income customers to a pre-selected vendor to install solar and storage at no up-front cost, in part by leveraging state and federal incentives. In addition to providing customer cost savings, the battery storage systems will be controlled by a distributed energy resource management system (DERMS) platform to allow CPA to utilize batteries to reduce Resource Adequacy (RA) obligation, support grid reliability, and operate in the fashion of a Virtual Power Plant.
CPA released a Request for Proposals (RFP) in late June to select a vendor to design, finance/lease, install, operate, and maintain solar and battery storage systems for low-income single-family and multifamily customers. CPA received one proposal for single-Page 12 of 39 Executive Committee Item 3
family and none for multi-family. Staff is in the process of negotiating a Professional Services Agreement (PSA) with the bidding vendor for a not-to-exceed amount of approximately $322,500 for a three-year term. The ability to reduce RA obligations is expected to make these projects financially beneficial to CPA in less than five years.
Should those negotiations be successful, the agreement will be submitted for consideration at the December Board meeting.
Fiscal Year 2025/26 New Communities Rate Setting Approach This item will be subject to a separate presentation to the Executive Committee.
Salary Grades/Benefits/Employee Handbook Updates
This item will be subject to a separate presentation to the Executive Committee.
Election of Ventura County At-Large Executive Committee Position At the November 7, 2024, Board of Directors meeting, Chair Klein Lopez opened the nomination period for the Ventura County At-Large position on the Executive Committee.
The remainder of the term will end June 30, 2026. The nomination period for the At-Large position will close on Wednesday, November 20, 2024.
The election will occur at the December 5, 2024, Board of Directors meeting. Government Code section 54953(b)(2) states, “[a]ll votes taken during a teleconferenced meeting shall be by roll call. Accordingly, the Clerk of the Board will conduct a roll call vote of Regular Directors representing Ventura County jurisdictions. Alternate Directors may not vote in the election of At-Large Executive Committee positions.
ATTACHMENTS
1. Draft December 5, 2024, Board of Directors Agenda
2. Policy Platform
3. Draft 2025 Meeting Schedule
Executive Committee Item 3
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, December 5, 2024
2:00 p.m.
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the November 7, 2024, Board of Directors Meeting
2. Approve the 2025 Legislative & Policy Platform as Recommended by the Legislative & Regulatory Committee
3. Adopt Resolution No. 24-12-077 Approving the Expansion of CPA’s Peak Management Pricing (PMP) Program
4. Receive and File 2025 Meeting Schedule
5. Receive and File Quarterly Financial Report
6. Receive and File Quarterly Risk Management Team Report
7. Receive and File Quarterly Program Report
8. Receive and File Quarterly Communications Report
9. Receive and File Monthly Community Advisory Committee Report
REGULAR AGENDA
Action Items
10.Approve Power Purchase Agreements/Energy Storage Agreements/Resource Adequacy Agreements and Update on Long-Term Power Contracting
11.Approve Professional Services Agreement (PSA) with Haven Energy Inc. for a Not-To-Exceed of Approximately $322,500 for a Three-Year Term
12.Approve Fiscal Year 2025/26 Rate Setting Approach for New Communities
13.Approve Salary Grades, Benefits, and Employee Handbook Updates Election Item
14.Election of Executive Committee At-Large Position for the remainder of the term, ending June 30, 2026
COMMITTEE CHAIR UPDATES
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT MEETING ON FEBRUARY 6, 2025
*Red represents text that has been added or removed
*Blue represents text that has been moved or combined
Proposed 2024 Legislative and Regulatory Policy Platform Overview and Purpose
The Clean Power Alliance (CPA) Legislative and Regulatory Policy Platform (Platform) serves as a guide to the CPA Board of Directors and CPA staff in their advocacy efforts and engagement on policy matters of interest to CPA. The Platform allows both members of the CPA Board of Directors and CPA staff to pursue actions at the regional, state and federal legislative and regulatory levels in a consistent manner and with the understanding that they are pursuing actions in the best interest of the organization and its mission, its member agencies, and its customers.
The Platform provides direction to CPA staff on positions that should be taken on regulatory matters and legislative bill proposals. The Platform also provides guidance to the Chief Executive Officer on positions that should be taken on legislative and regulatory matters that come before the California Community Choice Association (CalCCA) Board of Directors.
CPA staff report to the Board monthly on all positions taken on legislative bills. For bills that fall outside the scope of this platform; bills that are likely to attract high-profile supporters and detractors, including bills that would modify the California Environmental Quality Act (CEQA); bills that would raise taxes; or bills that would knowingly put CPA at odds with positions that its member agencies have taken, CPA staff will seek approval of a proposed position to the Legislative & Regulatory Committee and Board of Directors before taking a position.
Policy Principles
The Legislative and Regulatory Policy Platform is centered around five basic principles:
1. Protecting CPA’s local control and competitive position, especially as it relates to rates, finances, power procurement and expansion of its service territory.
2. Pursing power resource planning and procurement that promotes the growth in renewable energy capacity at the local, state, and regional level and reduce fossil fuel dependency, with the goal of combating climate change.
3. Developing and administering customer programs that encourage clean energy adoption by CPA customers and the use of that clean energy in an efficient and managed way to support cost reduction and grid reliability.
4. Ensuring fair access to data, particularly as it relates to energy usage, billing, and information needed to develop and administer customer programs.
5. Supporting CPA’s ability to set electric rates and offer programmatic services that are affordable and inclusive for all.
These principles are incorporated throughout the below platform.
Policy Platform
1. Affordability and Local Control
a. Fair rates and cost allocation: CPA will pursue administrative and legislative initiatives that will ensure that non-bypassable charges for CPA customers, including any income-graduated fixed charges, are assessed fairly compared to bundled customers and that CPA’s customers are not unnecessarily burdened by non-bypassable charges.
b. Finances: CPA will pursue administrative and legislative initiatives to ensure that CPA is eligible to apply and receive funding made available to the electricity sector for decarbonization, reliability, and affordability purposes, and that CPA’s financial health is not disparately impacted by new regulations. c. CCA Expansion: CPA will pursue administrative and legislative initiatives to protect CPA’s ability to expand its service to new member agencies. d. Local Control: CPA will pursue administrative and legislative initiatives to protect CPA Board’s authority over CPA’s procurement, rate-setting, governance, and customer program development activities.
e. Infrastructure Financing: CPA will pursue administrative and legislative initiatives that support alternative approaches to financing energy infrastructure that reduce costs for all customers.
2. Power Resources Planning and Procurement
a. Resource Adequacy and Reliability: CPA will pursue administrative and legislative initiatives that will enable CPA to secure capacity resources to meet its reliability obligations, such as initiatives that evaluate the supply of capacity resources available to load serving entities (LSEs), determine the appropriate market mechanisms for LSEs to procure capacity resources, and develop a durable policy framework that encourages all LSEs to construct their fair share of new capacity resources to maintain grid reliability while pursuing decarbonization efforts. b. Carbon-Free Resources: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to procure carbon-free resources to meet or exceed the needs of CPA’s three product offerings and its long-term carbon-free procurement goal as required by SB 100 and other statutory or regulatory obligations.
c. Renewable and Carbon-Free Resources: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to procure eligible Renewable Portfolio Standard (RPS) and carbon-free resources to meet the needs of CPA’s three product offerings and its long-term RPS procurement goal as required by SB 100 and other statutory or regulatory obligations.
d. Integrated Resource Plan: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to plan and procure resources to meet various environmental and reliability goals set by state laws and by its Board of Directors, while offering affordable products and programs to serve its customers, including disadvantaged communities.
e. Transmission: CPA will pursue administrative and legislative initiatives that will expedite new transmission infrastructure needed to meet California’s climate goals, as well as initiatives that will provide CPA adequate access to transmission capacity to maximize its procurement of RPS-eligible or carbon-free resources that meet various statutory and regulatory requirements.
f. Access to the Electrical Grid: CPA will pursue administrative and legislative initiatives that support reducing timelines in interconnection and service extensions
for new construction, critical services, renewable energy, building decarbonization, and other projects in CPA’s service territory.
f. Research & Development: CPA will pursue administrative and legislative initiatives that support the research and development of new energy resources that can be procured to meet the reliability and decarbonization goals set by the State and its Board of Directors.
g. Grid Reliability: CPA will pursue administrative and legislative initiatives that support the expansion of a regional Western energy grid that improves reliability; accelerates decarbonization; improves transmission planning; reduces costs for ratepayer and load serving entities; maintains California’s ability to set, meet and implement its own climate goals; and protects clean energy jobs within the State.
3. Customer Programs
a. Demand Response, Demand Flexibility and Energy Efficiency: CPA will pursue administrative and legislative initiatives that will enable CPA and its customers to develop and participate in programs that promote the use of clean energy in an efficient and managed way to support cost reduction, grid reliability, and lower greenhouse gas emissions.
c. Building and vehicle decarbonization: CPA will pursue administrative and legislative initiatives that support the ability of CPA to promote statewide building and vehicle decarbonization, primarily through electrification.
d. Local Grid Management and Resiliency: CPA will pursue administrative and legislative initiatives that supports the ability of CPA and its member agencies to offer local grid management and resiliency solutions to increase local reliability, and adaptability that could protect against power outages and extreme heat. f. Research and Development: CPA will pursue administrative and legislative initiatives that support the ability of CPA to explore new opportunities related to behind the meter clean energy resources.
4. Data Access
a. Timely and Accurate Access to Customer Data: CPA will pursue administrative and legislative initiatives that will enable CPA to obtain timely and accurate access to its customers’ data to improve billing accuracy and inform the development and implementation of customer programs.
b. Fair Fees for Data Management Services: CPA will pursue administrative and legislative initiatives to ensure that the fees due to Southern California Edison for data access and management are fairly assessed based on data needs and potential technological improvements.
c. Billing Transparency: CPA will pursue administrative and legislative initiatives that increase customer understanding of electricity bill components and display electricity charges in a clear and consistent manner for both bundled and unbundled customers.
5. Diversity, Equity, Inclusion
a. Customer Protection: CPA will pursue administrative and legislative initiatives that support the protection of all ratepayers, particularly environmental and social justice communities in CPA’s service territory.
b. Supplier Diversity: CPA will pursue administrative and legislative initiatives that supports supplier diversity in CPA’s contracting activities and through women-owned, minority-owned, disabled-veteran-owned, and lesbian, gay, bisexual, and/or transgender owned business enterprises.
c. Workforce Development: CPA will pursue administrative and legislative initiatives that support workforce development with a focus on new stable, well-paying local jobs, and participation in a just transition to a low-carbon economy. d. Energy Equity: CPA will pursue administrative and legislative initiatives that support increased access to clean energy technologies, workforce development initiatives that support the clean energy industry, and clean energy opportunities for environmental and social justice communities in CPA’s service territory.
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
2025 MEETING SCHEDULE
This schedule is updated regularly. Please check our website at www.cleanpoweralliance.org to view the most up-to-date version.
Red Strikeout indicates cancelled meeting, and Red Font indicates new meeting date. Agendas are available at www.cleanpoweralliance.org/agendas at least 72 hours prior to the meeting. For questions, contact the Clerk of the Board at [email protected] or 213-713-5995. Last updated: 11/12/2024
STANDING MEETINGS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Board of Directors
2:00 PM, 1st Thursday DARK 6 6 3 1 5 10 DARK 4 2 6 4
Board Meeting In-Person: Clean Power Alliance Office – Downtown LA Locations Remote: Ventura County Hall of Administration, City of Calabasas, City of Whittier, Torrance at South Bay Cities COG Executive Committee
1:30 PM, 3rd Thursday 16 20 20 17 15 19 17 21 18 16 20 18 In-Person: Clean Power Alliance Office – Downtown LA
Meeting Locations
Remote: May vary depending on the composition of the Committee.
Community Advisory
Committee
10:00 AM, 3rd Thursday
16 20 20 17 15 19 17 21 18 16 20 18
In-Person: Clean Power Alliance Office – Downtown LA Meeting Locations Remote: Ventura County Hall of Administration, City of Hawaiian Gardens Legislative & Regulatory
Committee
10:00 AM, 4th Wednesday
22 26 26 23 28 25 23 27 24 22 26 DARK
Finance Committee
11:00 AM, 4th Wednesday 22 26 26 23 28 25 23 27 24 22 26 DARK Energy Planning &
Resources Committee
12:15 PM, 4th Wednesday
22 26 26 23 28 25 23 27 24 22 26 DARK
In-Person: Clean Power Alliance Office – Downtown LA
Meeting Locations
Remote: Varies, please refer to posted Meeting Agendas for locations.
Staff Report – Agenda Item 4
To: Executive Committee
From: Karen Schmidt, Senior Director, Rates & Strategy
Reviewed by: Matthew Langer, Chief Operating Officer
Nancy Whang, General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: FY 2025/26 New Communities Rate Setting Approach Date: November 21, 2024
RECOMMENDATION
Recommend to the Board of Directors for the following Fiscal Year 2025/26 rate approach for new communities joining CPA in October 2025:
(A) Set the new member communities’ rates at the total bill comparison targets as specified in slide 5 of attachment 1, which is designed to cover the customers’ cost of service and contribute to CPA’s financial goals,
(B) Set a subset rate for the new communities that does not exceed the bill comparison levels for each subset rate schedule as of July 1, 2024 as specified in slide 6 of attachment 1, which is designed to cover the subset customers’ cost of service and contribute to CPA's financial goals, and,
(C) Authorize staff to update rates for the new communities periodically as needed when SCE rates change, to maintain these total bill comparison levels throughout FY 2025/26.
ATTACHMENTS
1. FY 2025/26 New Communities Rate Setting Approach Presentation
FY 2025/26 New Communities Rate
Setting Approach
November 21, 2024
Summary
Three new member agencies – La Cañada Flintridge, Lynwood, and Port Hueneme – will begin CPA service in October 2025, per the Implementation Plan Addendum approved by the CPA Board in December 2023 and certified by the CPUC in March 2024 Each agency’s city council will select its community’s preferred energy option (i.e., default rate) in Q1 2025, enabling CPA to begin work on energy procurement and community outreach. To select a preferred energy option, city councils need to be given bill comparisons.
At its June 2024 retreat, CPA Board members affirmed that customers in new communities should be provided with competitive rates that align with targets for existing communities Staff proposes that the Board adopt bill comparison targets for the new communities that match the FY 2024/25 levels adopted by the Board in June 2024, including a 1% total bill discount compared to SCE for Lean Power, parity for Clean Power, and a 5% premium for 100% Green Power for residential and small/medium business customers Staff is requesting that the Executive Committee recommend this rate approach for adoption at the December 5 Board meeting, along with a delegation of authority to staff to adjust rates for the new communities as needed to maintain these targets throughout FY 25/26
November 7, 2024 (Board) – First Look at 2025 PCIA and SCE Rates November 21, 2024 (Community Advisory Committee) – FY 2025/26 New Communities Rate Setting Approach
November 21, 2024 (Executive Committee) – Recommend FY 2025/26 New Communities Rate Setting Approach to Board
November 2024 – May 2025 (Staff) – FY 2025/26 rate planning; cost of service study, energy cost projections, load forecasting, and budgeting (ongoing) December 5, 2024 (Board) – Request approval of FY 2025/26 New Communities Rate Setting Approach
April 2025 (Board) – FY 2025/26 Rates Outlook
May 2025 (Board) – Request approval of FY 2025/26 Rate Setting Approach June 2025 (Board) – Request approval of Proposed FY 2025/26 Rates 3 FY 2025/26 Rates Process
Considerations for FY 25/26 Rates for New
Communities
The communities beginning CPA service in October 2025 will be placed on SCE’s 2025 vintage PCIA rate, which is projected to be lower than the 2018 vintage PCIA rate paid by most CPA customers under either SCE ERRA scenario
SCE’s one-time generation rate decrease in October 2024, to correct for revenue overcollection the previous year, will be reversed in October 2025, raising SCE bundled rates 1.2 cents/kWh on average
($0.06)
($0.05)
($0.04)
($0.03)
($0.02)
($0.01)
$0.00
PCIA 2017 Vintage PCIA 2018 Vintage PCIA 2019 Vintage PCIA 2023 Vintage PCIA 2025 Vintage $/kWh
Projected SCE 2025 PCIA Rates
SCE ERRA Scenario 1 SCE ERRA Scenario 2
Based on the projected SCE generation and 2025 vintage PCIA rates, staff expects customers in the new communities to cover their cost of service and contribute to CPA’s financial goals if their rates are set to match the FY 24/25 targets adopted by the Board in June 2024 Adopting these targets will allow for consistent messaging and predictable choices for new customers prior to and during their first year of CPA service These targets will offer new residential and small/medium business customers with at least one CPA rate option that is less expensive than SCE
Recommended New Community Rate Approach
Recommended FY 25/26 Total Bill Comparison for New Communities Scenario
Comparison to SCE Projected Average Monthly Bill*
Lean Clean 100% Green SCE Base Lean Clean 100% Green
Residential -1.0% 0.0% +5.0% $193 $191 $193 $202
Residential CARE -1.0% 0.0% +5.0%** $130 $129 $130 $137** Small/Medium Business -1.0% 0.0% +5.0% $275 $272 $275 $289 *Based on projected SCE rates as of October 2025, assuming CPUC approval of SCE’s 10/23/24 Alternate October ERRA Update (“Scenario 2”). SCE rates subject to change. Individual customer comparisons vary by specific rate schedule and customer usage. **CARE, FERA, and Medical Baseline customers in 100% Green Power default communities receive 100% Green Power at Clean Power rates.
Subset Rates
Recommended Maximum FY 25/26 Total Bill Comparisons for New Communities – Sample Subset Rates*
Rate Schedule Lean Clean 100% Green
TOU-GS-3-D 2.3% 3.4% 8.7%
TOU-8-D-SEC 2.3% 3.4% 8.8%
TOU-PA-2-D 0.3% 1.4% 6.9%
TOU-PA-3-D 1.1% 2.2% 7.9%
LS-1 19.2% 20.4% 26.7%
Large commercial and industrial, pumping and agricultural, and streetlighting rates are referred to internally as “subset” rates
Staff recommends adopting a subset rate approach for the new communities that does not exceed the bill comparison levels for each subset rate schedule as of July 1, 2024, which is designed to cover the subset customers’ cost of service and contribute to CPA's financial goals The Board may consider lowering (improving) the new communities’ subset bill comparisons during the regular FY 25/26 rate setting cycle based on updated cost of service and competitiveness analysis
*Note: Individual customer comparisons will vary by specific rate schedule and customer usage.
Recommend to the Board the following the FY 25/26 Rate Approach for New Communities joining CPA in October 2025
1. Set the new member communities’ rates at the total bill comparison targets as specified in Slide 5, which is designed to cover the customers’ cost of service and contribute to CPA’s financial goals
2. Set a subset rate for the new communities that does not exceed the bill comparison levels for each subset rate schedule as of July 1, 2024 as specified in Slide 6, which is designed to cover the subset customers’ cost of service and contribute to CPA's financial goals.
3. Authorize staff to update rates for the new communities periodically as needed when SCE rates change, to maintain these total bill comparison levels throughout FY 2025/26.
7 Summary: Recommendation to the Board of Directors
Next Steps
Today, staff is requesting that the Executive Committee recommend a FY 2025/26 rate setting approach for new member communities for adoption by the Board at its next meeting on December 5
The Board-approved rate setting approach will be communicated to the new member agencies to help inform selection of their community’s preferred energy option in Q1 2025
Staff will begin developing scenarios for the FY 25/26 rate setting approach for existing communities after SCE has finalized its Q1 2025 generation, delivery, and PCIA rate changes
Final rate setting and rate schedule approvals for existing communities will take place at the June 2025 Board meeting along with adoption of the FY 25/26 budget o The Board may consider lowering (improving) the new communities’ subset bill comparisons at that time based on updated cost of service and competitiveness analysis
Questions
Staff Report – Agenda Item 5
To: Executive Committee
From: Dr. Monique Edwards-Greer, Chief Administrative Officer Approved By: Ted Bardacke, Chief Executive Officer
Subject: Salary Grades, Benefits, and Employee Handbook Updates Date: November 21, 2024
RECOMMENDATION
Recommend to the Board of Directors the following staff recommendations:
(A) Approve the update to salary grades for 2025 to accommodate labor market changes, inflation, and maintain CPA’s competitiveness as specified in slide 6 of attachment 1,
(B) Approve the revisions to CPA’s Employee Handbook that clarify administrative procedures and ensure compliance with current and new laws, and, (C) Provide input on whether to include caregiver leave benefits to CPA’s benefits offerings.
ATTACHMENT
1. Presentation on Salary Grades, Benefits, and Employee Handbook Updates
Salary Grades/Benefits/Employee
Handbook Updates
November 21, 2024
Summary
CPA has made significant progress in retaining and recruiting a high-performing staff, even in the face of stiff labor market competition from the renewable energy industry, CCAs, and the private sector.
Bi-annual salary grade and benefit reviews/updates have been integral to this success, as was the Executive/Management Retention Incentive program approved by the Board in concept in late 2022 and finalized in mid 2023.
CPA re-engaged HR/Compensation consultant Mercer to assist with the 2024 salary and benefits benchmarking study and to develop strategies to ensure CPAs salaries and benefits remain competitive.
CPA’s compensation philosophy is to be in the 3rd Quartile of base salary and total cash compensation across the organization as measured against four different market sectors (CCAs, general industry, utilities/energy, and large-revenue public sector organizations).
Mercer’s benchmarking study shows CPAs overall positioning for all positions is generally within this 3rd Quartile. This positioning becomes more differentiated when senior executive positions (6 positions) are broken out.
CPA staff is recommending only slight adjustments to salary grades (3.5%) to stay well positioned for the next 2 years and account for current and future inflation and seeks Executive Committee input.
CPA remains competitive in benefits benchmarking and seeks Executive Committee input on the addition of caregiver leave for the growing number of employees with aging parents.
CPA Total Cash
CPA Base Salary Overall Positioning Summary by Market Key: Perspective for All Positions vs. CCAs
25th %ile
50th %ile
75th %ile
Max
Min
vs. CCAs vs. General Industry vs. Utilities/Energy vs. Public Sector
CPA Total Cash
CPA Base Salary Overall Positioning Summary by Market Key: Perspective for Senior Executives Only vs. CCAs
25th %ile
50th %ile
75th %ile
Max
Min
vs. CCAs vs. General Industry vs. Utilities/Energy vs. Public Sector
CPA Total Cash
CPA Base Salary Overall Positioning Summary by Market Key: Perspective Excluding Senior Executives vs. CCAs
25th %ile
50th %ile
75th %ile
Max
Min
vs. CCAs vs. General Industry vs. Utilities/Energy vs. Public Sector
Salary Grades
As recommended by Mercer, salary ranges should be adjusted by 3.5% to keep pace with market and light design updates should be made (broader range spreads and modify midpoint differentials) Range movement would integrate market alignment and partially account for expected inflation and upcoming COLA adjustments
With the recommended updates to the salary grades, employees would remain at similar position in range without needs for salary adjustments. This change has no immediate fiscal impact CPA Pay ratio: Highest paid employee to lowest paid employee is 4.6 on cash basis and 5.4 on TCC basis.
Best practice (benchmarked against B-Corps) is that TCC pay ratio should not exceed 7.0 Current Salary Structure Current State Analysis
Grade Minimum Midpoint Maximum
Midpoint
Progression
Range
Spread
116 $315,192 $425,509 $535,825 25% 70%
115 $252,150 $340,407 $428,654 32% 70%
114 $205,722 $257,152 $321,440 18% 56%
113 $174,341 $217,927 $272,409 18% 56%
112 $153,885 $184,663 $221,595 15% 44%
111 $133,814 $160,576 $192,690 15% 44%
110 $116,359 $139,630 $167,558 15% 44%
109 $101,182 $121,418 $145,702 15% 44%
108 $87,983 $105,582 $126,698 15% 44%
107 $76,508 $91,810 $110,172 15% 44%
106 $66,528 $79,834 $95,801 44%
Proposed New Salary Structure: +3.5% and Light Design Updates Grade Minimum Midpoint Maximum
Midpoint
Progression
Range
Spread
116 $325,270 $447,246 $569,223 30% 75%
115 $254,841 $344,036 $433,230 25% 70%
114 $211,708 $275,220 $338,733 20% 60%
113 $176,423 $229,350 $282,277 20% 60%
112 $152,900 $191,125 $229,350 15% 50%
111 $132,957 $166,196 $199,435 15% 50%
110 $115,614 $144,518 $173,422 15% 50%
109 $100,534 $125,668 $150,801 15% 50%
108 $87,421 $109,276 $131,132 15% 50%
107 $76,018 $95,023 $114,028 15% 50%
106 $66,103 $82,629 $99,154 50%
Benefits and Employee Handbook Updates
1. Benefits
Mercer study shows CPAs overall benefits are competitive with market. No major changes are necessary
Staff is seeking ExCom input on beginning to offer “Caregiver Leave” to employees that must care for parents or step-parents
• CPA sees a limited but increasing number of staff who are faced with this situation • Market data showed that this benefit is offered by less than 50% of organizations but is increasing in prevalence
• CPA currently offers 12 weeks of paid Parental Leave based on FMLA eligibility criteria • Up to 6 weeks of paid leave for Caregiver Leave based on similar FMLA eligibility criteria would keep CPA in a strong benefits position
2. Employee Handbook Updates
With the exception of the potential addition of Caregiver Leave, the primary updates to the employee handbook are legally required updates and to clarify administrative procedures
Recommendations
Recommend to the Board the following staff recommendations
1. Approve the Update to Salary Grades for 2025 to accommodate labor market changes, inflation, and maintain CPA’s competitiveness as specified in Slide 6.
2. Approve the Revisions to CPA’s Employee Handbook that clarify administrative procedures and ensure compliance with current and new laws.
3. Provide input on whether to include caregiver leave benefits to CPA’s benefits offerings.
Fiscal Impact
1. The changes to salary grades do not impact any particular employee’s current salary and therefore have no fiscal impact in the current budget year. Given the limited nature of the proposed salary grade adjustments, the fiscal impact in future years is likely to be minimal.