Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, January 16, 2025
1:30 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
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:
Ventura County Government Center
CEO Point Mugu Room
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Camarillo City Hall
Council Office
601 Carmen Drive
Camarillo, CA 93010
Alhambra City Hall
Conference Room
111 S. First St.
Alhambra, CA 91801
Beverly Hills City Hall
Council Office, 4th Floor
455 N. Rexford Drive
Beverly Hills, 90210
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Hawthorne City Hall
Administrative Office
4455 W. 126th Street
Hawthorne, CA 90250
Santa Paula City Hall
Councilmember Office
970 E. Ventura Street
Santa Paula, CA 93060
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 Agenda Page 1
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
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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 December 12, 2024, Executive Committee Meeting
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
3. Review Draft Agenda for the February 6, 2025, Board of Directors Meeting
4. Receive Presentation on Interim Rate Adjustment Options and Provide Recommended Action to the Board of Directors
5. Receive Presentation on 2025 Board Outlook
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT REGULAR MEETING ON FEBRUARY 20, 2025
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.
Agenda Page 2
Staff Report – Agenda Item 1
To: Executive Committee
Subject: Approve Minutes from the December 12, 2024, Executive Committee Meeting
Date: January 16, 2025
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
Executive Committee Item 1
MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, December 12, 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
Hawthorne City Hall
Administrative Office
4455 W. 126th Street
Hawthorne, CA 90250
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
Ventura County Government Center
CEO Point Mugu Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
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
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 Absent
Beverly Hills Julian Gold Immediate Past Chair Remote
Camarillo Susan Santangelo Committee Member Remote
Carson Cedric Hicks Committee Member Absent
Agenda Page 4
Executive Committee Item 1
Hawthorne Alex Monteiro Committee Member Remote
Los Angeles County Rita Kampalath Alternate Remote
Ojai Jenny Crosswhite Committee Member Absent
Sierra Madre Robert Parkhurst Committee Member Remote
Ventura County Vianey Lopez Vice Chair Absent
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from November 21, 2024, Executive Committee Meeting Motion: Committee Member Monteiro, Hawthorne
Second: Committee Member Parkhurst, Sierra Madre
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, reported that the low-income air conditioner rebate program now has a live website; buyers of the AC units receive an instant $300 rebate at certain retailers. He also commented that CPA closed on its third pre-pay bond, resulting in record savings. Finally, CPA will sign off on the commercial operation of the Desert Quartzite Solar project in late December, which will provide 300 MW of solar and 230 MW of battery energy storage.
CLOSED SESSION
3. PUBLIC EMPLOYEE PERFORMANCE EVALUATIONS: (Government Code Section 54957) (2) Titles: Chief Executive Officer and General Counsel Nancy Whang, General Counsel, stated there were no reportable actions, but the Committee provided direction to staff.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Chair Klein Lopez adjourned the meeting at 3:06 p.m.
Agenda Page 5
Staff Report – Agenda Item 2
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Oral Update from the CEO on CPA Operations
Date: January 16, 2025
The CEO will provide an oral update on CPA operations.
Agenda Page 6
Staff Report – Agenda Item 3
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Review Draft Agenda for the February 6, 2025, Board of Directors Meeting
Date: January 16, 2025
Staff will provide an overview of the proposed agenda items for the February 6, 2025, 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 February Board meeting.
Approve and Authorize Amendment 3 to TRC Professional Services Agreement for Reach Code Consulting Services
On February 2nd, 2023, the Board approved the Building and Electric Vehicle Electrification Reach Code (Reach Code) program and a 2-year Professional Services Agreement (PSA) with TRC Consulting, Inc. (TRC) for $430,000 to develop model codes, provide technical support to member agencies, and perform research to help inform and grow CPA’s programs. CPA’s Chief Executive Officer authorized two subsequent amendments; Amendment 1 added $43,000 and Amendment 2 added an additional $34,272 to the initial term budget.1
1 Amendment 1 was executed under the CEO’s previous signing authority and Amendment 2 was executed under the new authority approved by the Board in October 2024.
Agenda Page 7
Executive Committee Item 3
The PSA with TRC allowed for up to two (2) one year renewal terms, but the amount approved by the Board did not provide a budget for those additional terms. Staff is negotiating Amendment 3 to the PSA for an 18-month contract renewal term totaling $596,220 to provide funding for the renewal term and to complete work with the 13 member agencies who are being assisted by this program. Should those negotiations be successful, the Amendment will be submitted for consideration at the February Board meeting.
Approve Professional Services Agreement with Langan for GIS Services CPA has contracted with Langan CA, Inc. (Langan) since October 21, 2020 to develop and maintain a Geographic Information System (GIS) web tool to support CPA's Disadvantaged Communities Green Tariff and Community Solar Green Tariff and provide CPA with other as-needed GIS services. CPA has selected Langan to continue providing these services after conducting a Request for Quotes (RFQu) process in December 2024.
Langan demonstrated the expertise and experience required to provide these services to CPA and offered CPA the best value. The services provided under this PSA during the one-year engagement include two major tasks: external web application enhancements and as-needed GIS services, with a not-to-exceed amount of $100,000.2 Approve and Authorize Workforce Development MOUs
On November 7, 2024 the Board approved the Workforce Phase 3 funding proposal for Multi-Craft Core Curriculum (MC3) pre-apprenticeship programs with two new partners Flintridge Center and Women in Non-Traditional Employment Roles (WINTER) and authorized staff to negotiate Memorandum of Understandings (MOUs). Flintridge Center provides pre-apprenticeship training to formerly incarcerated and gang-impacted individuals. WINTER provides pre-apprenticeship training to a variety of women, including low income, of color, gang-impacted, or recently out of foster care. 2 On April 4, 2024, the Board approved a separate PSA with Langan to provide software development and information technology (IT) services, with a not-to-exceed amount of $280,000. That PSA is effective through April 3, 2025. Because the aggregate total paid to Langan during the fiscal year would exceed the CEO’s delegated signature authority of $250,000, the $100,000 GIS contract must be presented to the Board for consideration.
Agenda Page 8
Executive Committee Item 3
Staff is in the process of negotiating 3-year MOUs with WINTER and Flintridge Center for a not-to-exceed of $558,000 and $435,000 respectively. Should those negotiations be successful, the MOUs will be submitted for consideration at the February Board meeting.
REGULAR AGENDA
The following items are recommended for inclusion on the Regular Agenda of the February Board meeting.
Interim Rate Adjustment
This item will be subject to a separate presentation to the Executive Committee.
Power Purchase Agreements/Energy Storage Agreements and Amendments On September 25, CPA’s Energy Committee approved a shortlist of six projects and a waitlist of another six projects from the 2024 Clean Energy and Reliability RFO. A bilateral offer submitted outside of the RFO was also approved as part of the waitlist. The projects include solar paired with storage, stand-alone storage, Resource Adequacy only and a geothermal project. Staff is now in the process of negotiating long-term contracts with the shortlisted counterparties approved by the Energy Committee. Should the negotiations be successful, the contracts may be presented to the Board for consideration.
Salary Grades/Benefits/Employee Handbook Updates/General Counsel Contract Amendment
At its November 21 meeting, the Executive Committee unanimously recommended that the Board approve a 3.5% increase to, and slight redesign of, CPA’s Salary Grades, the addition of limited Caregiver Leave to CPA’s benefits package, and administrative and legally-required updates to CPA’s Employee Handbook. Due to time constraints at the December 5 Board meeting, the Board was unable to consider the item.
The item will be re-presented to the Board with two modifications. First, the requested increase to the Salary Grades will be 3.7% given that the inflation rate upon which the Salary Grades are partially based came in 0.2% percentage points higher than forecast Agenda Page 9
Executive Committee Item 3
later in December. Second, the item will include a contract amendment for CPA’s General Counsel that is the result of discussions during her annual performance review on December 12, 2024. The proposed contract amendment:
• Extends the contract expiration date by 1.5 years to June 30, 2028. • Immediately increases the General Counsel’s salary from the current $439,125 to $469,864 in order to match the current salaries of CPA’s Chief Administrative Officer, Chief Financial Officer, and Chief Operating Officer. • Adds a provision that the General Counsel’s salary will be adjusted annually to match the median salary of those CPA employees in Salary Grade 116 (e.g. the CAO, CFO, and COO) unless the Executive Committee deems a different salary adjustment is warranted.
• Changes the timing of the General Counsel’s annual performance review to match the timing of CPA’s fiscal year and overall annual performance review cycle.
The proposed changes to the Salary Grades/Benefits Package/Employee Handbook have no immediate fiscal impact. CPA is currently more than $1 million under budget for staffing in FY2024/25 and therefore can accommodate the proposed increase to the General Counsel’s salary within the Board-approved FY 2024/25 budget.
Communications and Marketing Update/Look Ahead
Communications and Marketing will provide an overview of planning for 2025 in program marketing, media relations, community outreach and stakeholder engagement to grow CPA’s brand identity, raise our profile and increase customer understanding and participation. The team will also include quarterly updates for website performance, social media highlights, and marketing progress.
ATTACHMENT
1. Draft February 6, 2025, Board of Directors Agenda
Agenda Page 10
Executive Committee Item 3
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, February 6, 2025
2:00 p.m.
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the December 5, 2024, Board of Directors Meeting
2. Approve and Authorize Amendment No. 3 to TRC Professional Services Agreement
3. Approve Langan GIS Contract Agreement
4. Approve Workforce Development MOUs
5. Receive and File Monthly Community Advisory Committee Report
6. Receive and File Bill Positions January 2025 Monthly Report
REGULAR AGENDA
Action Items
7. Interim Rate Adjustment
8. Approve Power Purchase Agreements/Energy Storage Agreements/Resource Adequacy Agreements and Amendments
9. Approve Salary Grades, Benefits, Employee Handbook Updates, and General Counsel Contract Amendment
Information Item
10.Receive Quarterly Communications and 2025 Look Ahead Presentation
COMMITTEE CHAIR UPDATES
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT MEETING ON MARCH 6, 2025
Agenda Page 11
Staff Report – Agenda Item 4
To: Executive Committee
From: Karen Schmidt, Senior Director, Rates & Strategy
Matt Langer, Chief Operating Officer
Approved by: Ted Bardacke, Chief Executive Officer
Subject: Interim Rate Adjustment Options
Date: January 16, 2025
RECOMMENDATION
Receive a presentation on interim rate adjustment options and provide recommended action to the Board of Directors.
ATTACHMENT
1. Presentation on Interim Rate Adjustment Options
Agenda Page 12
Interim Rate Adjustment Options
January 16, 2025
Agenda Page 13
Summary
In December, the CPUC approved SCE’s Alternate 2025 ERRA Update, allowing SCE to decrease their generation rates 9% while slightly increasing 2018 vintage PCIA rates, effective January 1, 2025. SCE also implemented a delivery rate increase on January 1 Most CPA residential customers will see about a 7% total bill increase. Almost all that increase is due to the rise in SCE delivery rates
The decrease in SCE generation rates worsened CPA’s competitive position for most customers, with residential total bill premiums ranging from 7% for Lean Power to 13% for 100% Green Power
Financial projections indicate that the CPA Board could consider an interim rate adjustment to provide customers with near-term rate relief while staying on track to meet financial and competitiveness goals over the next two years
The earliest feasible time for the Board to consider any rate adjustment prior to the normal FY 2025/26 rate setting cycle is February 2025, for implementation in March 2025 Staff has prepared three interim rate adjustment options for the Executive Committee’s consideration and requests that the Committee provide a recommended action to the Board for consideration at its February 6 meeting
Agenda Page 14
Over strenuous CPA objections, in late December, the CPUC approved SCE’s Alternate 2025 ERRA Update, allowing SCE to decrease their generation rates 9% while slightly increasing 2018 vintage PCIA rates, effective January 1, 2025. SCE also implemented a delivery rate increase on January 1.
The decrease in SCE generation rates worsened CPA’s competitive position for most customers Most small/medium business bill comparisons are ~1% higher than residential; CARE comparisons are ~4% higher than residential (though overall CARE bills are still $60-$70 less per month). See Appendix for additional detail
Most CPA customers will see about a 7% increase in their bills compared to October 2024, almost all from the SCE delivery rate increase
CPUC ERRA Decision and Current Rates
Energy Product July 2024
Target
Comparison to
SCE October 2024 Comparison to
SCE Jan 2025 Comparison to
SCE
SCE Base $186 $182 $185
Lean $184 -1% $189 +3.6% $198 +7.0%
Clean $186 0% $191 +4.6% $199 +8.0%
100% Green $196 +5% $200 +9.7% $209 +13.0%
Average Total Residential Bill*
*Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profiles and CPA and SCE rates as of January 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.
Agenda Page 15
For customers in the communities that began service in 2024 – Hermosa Beach, Monrovia, and Santa Paula – the impact of the SCE rate changes was offset by a significant decrease in the 2023 vintage PCIA rates charged to customers in those communities Most customers in these communities will see about a 1% decrease in their total bills compared to October 2024
Current Rates in 2023 PCIA Vintage
Communities
Energy Product July 2024
Target
Comparison to
SCE October 2024 Comparison to
SCE Jan 2025 Comparison to
SCE
SCE Base $186 $182 $185
Lean $184 -1% $189 +3.6% $187 +1.0%
Clean $186 0% $191 +4.6% $188 +2.0%
100% Green $196 +5% $200 +9.7% $198 +7.1%
Average Total Residential Bill – Hermosa Beach/Monrovia/Santa Paula* *Comparisons are based on representative 2023 PCIA vintage rate schedules, average customer usage and load profiles and CPA and SCE rates as of January 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.
Agenda Page 16
Interim Rate Adjustment Considerations
Over time CPA has remained highly competitive, and total bill comparisons fluctuations have not had a discernible impact on customer participation rates However, current bill comparisons are above historical levels, at a time when rising total electricity costs are heightening customer impacts and concerns about affordability
In October 2025, SCE’s temporary ERRA trigger rate reduction will be reversed, raising SCE generation rates and significantly improving CPA’s competitive position $0.05
$0.10
$0.15
$0.20
$0.25
$0.30
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 1/1/2025 $/kWh
Residential Electricity Rates 2019-2024*
SCE Delivery (Equal
for All Customers)
CPA Generation -
100% Green Power
CPA Generation -
Lean Power
SCE Generation -
Base Rate
*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 Charge
and Fixed Recovery Charge.
Agenda Page 17
Interim Rate Adjustment Considerations
(cont.)
While the CPA Board aims to set rates annually to provide rate stability and predictability, there is precedent for adopting interim rate adjustments in response to extraordinary market and competitiveness conditions
The Board has an opportunity to consider a rate adjustment in advance of the regular FY 2025/26 rate setting cycle
o The following options would provide some near-term rate relief to customers while meeting CPA’s cost of service and financial targets, as CPA’s fiscal position in FY24/25 is significantly ahead of budget
o Staff project that under any of these scenarios, the Board could return to FY 2024/25 bill comparison levels in July 2025 and be close to meeting its maximum 50% reserve target by the end of FY 2025/26(1)
(1) Reserves are defined in CPA's Reserve Policy as the sum of the net position and fiscal stabilization fund balance. The Reserve Target is a range equal to 30-50% of annual operating expenses Agenda Page 18
Option 1: Modest rate reduction
Reduce FY 2024/25 revenue $37M, for projected FY2024/25 contribution to net position of $159M and reserves equal to ~45% of operating expenses
Results in total residential and small/business bill comparisons that are closer to historical targets, though still at a total bill premium to SCE for all products Provides some rate relief to customers in advance of FY 2025/26 rate setting cycle while continuing progress toward the CPA Board’s 50% reserve target Under this option customers in Hermosa Beach, Monrovia, and Santa Paula would not see any rate change
Energy
Product
July 2024
Target
Comparison
to SCE October 2024 Comparison
to SCE
Current Option 1
Jan 2025 Comparison
to SCE March 2025 Comparison
to SCE
SCE Base $186 $182 $185 $185
Lean $184 -1% $189 +3.6% $198 +7.0 $190 +3.0%
Clean $186 0% $191 +4.6% $199 +8.0 $192 +4.0%
100% Green $196 +5% $200 +9.7% $209 +13.0 $201 +9.0%
Average Total Residential Bill*
*Comparisons are based on representative estimated 2018 PCIA vintage rate schedules, average customer usage and load profiles and SCE rates as of January 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage. See Appendix for bill comparisons for large commercial, industrial, pumping and agriculture and streetlight rates (“subset rates”).
Agenda Page 19
Option 2: Lean at parity to SCE
Reduce FY 2024/25 revenue $65M, for projected FY2024/25 contribution to net position of $131M and reserves at ~43%
Results in total residential and small/medium bill comparisons that are close to July 2024 levels and provides customers with one option at parity with SCE Provides rate relief to customers in advance of FY 2025/26 rate setting cycle These comparisons would apply to customers across all PCIA vintages Energy
Product
July 2024
Target
Comparison
to SCE October 2024 Comparison
to SCE
Current Option 1
Jan 2025 Comparison
to SCE March 2025 Comparison
to SCE
SCE Base $186 $182 $185 $185
Lean $184 -1% $189 +3.6% $198 +7.0 $185 0%
Clean $186 0% $191 +4.6% $199 +8.0 $187 +1%
100% Green $196 +5% $200 +9.7% $209 +13.0 $196 +6%
Average Total Residential Bill*
*Comparisons are based on representative estimated 2018 PCIA vintage rate schedules, average customer usage and load profiles and SCE rates as of January 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage. See Appendix for bill comparisons for large commercial, industrial, pumping and agriculture and streetlight rates (“subset rates”).
Agenda Page 20
Option 3: FY24/25 comparison targets
Energy
Product
July 2024
Target
Comparison
to SCE October 2024 Comparison
to SCE
Current Option 1
Jan 2025 Comparison
to SCE March 2025 Comparison
to SCE
SCE Base $186 $182 $185 $185
Lean $184 -1% $189 +3.6% $198 +7.0 $183 -1.0%
Clean $186 0% $191 +4.6% $199 +8.0 $185 0%
100% Green $196 +5% $200 +9.7% $209 +13.0 $194 +5%
Average Total Residential Bill*
Reduce FY 2024/25 revenue $75M, for projected FY2024/25 contribution to net position of $121M and reserves at margin of ~42%
Returns residential and small/medium business bill comparisons to the target levels established by the Board in June 2024 for FY 2024/25
Provides customers with bill savings compared to current and October 2024 levels These comparisons would apply to customers across all PCIA vintages *Comparisons are based on representative estimated 2018 PCIA vintage rate schedules, average customer usage and load profiles and SCE rates as of January 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage. See Appendix for bill comparisons for large commercial, industrial, pumping and agriculture and streetlight rates (“subset rates”).
Agenda Page 21
Summary of Rate Adjustment Options
Current Option 1 Option 2 Option 3
Residential and Small/Medium Business Total Bill Comparisons to SCE(1) Lean Power +7% +3% +0% -1%
Clean Power +8% +4% +1% 0%
100% Green Power +13% +9% +6% +5%
Projected FY 2024/25 Contribution to Net
Position $196M $159M $131M $121M
Revenue Reduction ($37M) ($65M) ($75M)
FY 2024/25 Contribution to Net Position
(Projected vs. Budget)(2) $63M $26M ($2M) ($12M)
Projected Reserve % as of 6/30/25(3) ~47% ~45% ~43% ~42% (1) See Appendix for current and projected bill comparisons under each option for large commercial, industrial, pumping and agriculture and streetlight rates (“subset rates”) (2) The FY 2024/25 budgeted increase in the net position is $133 million (3) Staff project that each of Options 1-3 will allow CPA to either meet or be close to meeting its maximum 50% reserve target by the end of FY 2025/26
Agenda Page 22
Discussion and Next Steps
Staff requests that the Committee provide a recommended action to the Board for consideration at its February 6 meeting: no action, one of the presented options, or another option If the Executive Committee recommends adopting an interim rate adjustment, staff will prepare a resolution and rates for the Board’s consideration on February 6 based on the Executive Committee’s recommended option
If adopted, the interim rate adjustment would take effect March 1 Staff will begin discussion of the FY 2025/26 rate approach with Executive Committee in March and the Board in April in accordance with the regular annual rate setting cycle, culminating in Board adoption of FY 2025/26 rates in June 2025
Agenda Page 23
Appendix
Agenda Page 24
Current Total Bill Comparisons – January
2025
Energy Product July 2024
Target
Comparison to
SCE October 2024 Comparison to
SCE Jan 2025 Comparison to
SCE
SCE Base $126 $115 $117
Lean $124 -1.5% $122 +5.7% $130 +11.0%
Clean $126 0% $124 +7.3% $132 +12.6%
100% Green** $126 0% $124 +7.3% $132 +12.6%
Average Total Residential Bill – CARE/FERA/Medical Baseline* *Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profiles and CPA and SCE rates as of January 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage. **CARE/FERA/Medical Baseline customers in 100% Green Power default communities receive 100% Green Power at the Clean Power rate.
Agenda Page 25
Current Total Bill Comparisons – January
2025
Energy Product July 2024
Target
Comparison to
SCE October 2024 Comparison to
SCE Jan 2025 Comparison to
SCE
SCE Base $272 $262 $266
Lean $269 -1% $274 +4.3% $287 +8.1%
Clean $272 0% $276 +5.3% $290 +9.1%
100% Green $285 +5% $290 +10.5% $304 +14.2%
Average Total Small Business Bill*
*Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profiles and CPA and SCE rates as of January 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.
Agenda Page 26
15 Subset Rate Total Bill Comparisons
Rate
Schedule
July 2024 October 2024 January 2025 Option 1 Option 2 Option 3 Lean Clean 100%
Green Lean Clean 100% Green Lean Clean 100% Green Lean Clean 100% Green Lean Clean 100% Green Lean Clean 100% Green TOU-GS-3-D 2.3% 3.4% 8.7% 7.9% 9.0% 14.5% 11.9% 12.9% 18.3% 6.5% 7.4% 11.9% 3.2% 4.1% 8.5% 2.1% 3.0% 7.3% TOU-8-D-SEC 2.3% 3.4% 8.8% 8.1% 9.2% 14.8% 11.5% 12.9% 18.0% 6.2% 7.1% 11.7% 2.8% 3.7% 8.2% 1.7% 2.6% 7.1% TOU-PA-2-D 0.3% 1.4% 6.9% 6.4% 7.5% 13.3% 10.8% 11.9% 17.6% 1.8% 2.7% 7.2% -1.5% -0.6% 3.8% -2.6% -1.7% 2.7% TOU-PA-3-D 1.1% 2.2% 7.9% 7.2% 8.4% 14.3% 11.7% 12.9% 18.7% 5.0% 5.9% 10.7% 1.4% 2.3% 7.1% 0.2% 1.2% 5.9% LS-1 19.2% 20.4% 26.7% 23.7% 24.9% 31.3% 27.2% 28.5% 34.8% 21.0% 22.0% 27.4% 17.0% 18.1% 23.3% 15.7% 16.7% 22.0% *Subset rates include TOU-GS3, TOU-8, TOU-PA-2, TOU-PA-3, and streetlighting rate schedules. Comparisons are based on representative 2018 PCIA vintage rate schedules and average customer usage and load profiles for each specified rate class. Comparisons for interim rate adjustment options are preliminary, based on SCE rates as of January 1, 2025. Individual customer comparisons vary by specific rate schedule, PCIA vintage, and customer usage.
Selected Subset Rate Total Bill Comparisons*
Agenda Page 27
Staff Report – Agenda Item 5
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Presentation on 2025 Board Outlook
Date: January 16, 2025
Staff will provide a presentation on the item.
ATTACHMENT
1. 2025 Board Outlook - Major Items
Agenda Page 28
2025 Board Outlook – Major Items
January 16, 2024
Agenda Page 29
Major items before the CPA Board in 2025 will broadly be contained in four categories. Several of these are recurring functions:
1. Governance & Policy
2. Customer & Community Programs
3. Energy Procurement
4. Finance/Budget/Rates
Other specific operational items will be taken up as needed Some strategic items will be taken up/advanced at the annual Board retreat tentatively scheduled for mid-June
2 Summary
Agenda Page 30
First Quarter Major Items
Governance & Policy Customer &
Community Programs
Energy Procurement Finance/Rates/Budget
Incorporate New Board
Members
(election/rotation/new
communities)
Energized Communities
(Innovation Fund)
PPAs from 2024 RFO Interim Rate Adjustment
2025 Salary Grades
(holdover from Dec
2024)
Equitable Building
Decarbonization Grant
Acceptance
Discuss Board Stipends Workforce
Development MOUs
Agenda Page 31
Second Quarter Major Items
Governance & Policy Customer &
Community Programs
Energy Procurement Finance/Rates/Budget
Board Retreat Energized Communities
(Community Charging
Pathway)
PPAs from 2024 RFO FY 25/26 Budget and
Rates
Update FPCC Conflict
of Interest Code
MF Property Owner A/C
Incentive 2025 and 2026 Product Content
EV TOU Default Pilot Next Phase of Prepay Bond Program
(including energy trades with other CCAs)
FY 23/24 Budget
Adjustment (TBD)
Agenda Page 32
Third/Fourth Quarter Major Items
Governance & Policy Customer &
Community Programs
Energy Procurement Finance/Rates/Budget
Energy Risk
Management Policy
Amendments
Open Power Ready
Round 2
2025 Integrated
Resources Plan (IRP)
FY 24/25 Audited
Financial Results
2026 Legislative &
Regulatory Policy
Platform
MF EV Charging Expanded Power Share
PPAs
2026 Rates Outlook
Power Ready Round 2 Contracting Structure
(Asset Ownership?)
Agenda Page 33