MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, January 16, 2025
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
Santa Paula City Hall
Councilmember Office
970 E. Ventura Street
Santa Paula, CA 93060
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 Gabby Monzon, Clerk of the Board, conducted roll call.
Roll Call
Agoura Hills Deborah Klein Lopez Chair Remote
Alhambra Jeff Maloney Committee Member Remote
Beverly Hills Julian Gold Immediate Past Chair Remote
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
Santa Paula Jenny Crosswhite 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 December 12, 2024, Executive Committee Meeting Motion: Committee Member Hicks, Carson
Second: Committee Member Santangelo, Camarillo
Vote: The consent agenda was approved by a roll call vote, with a minor correction.
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
Ted Bardacke, Chief Executive Officer, reported on the impact of the Los Angeles County fires on CPA’s service area, noting that an estimated 100,000 CPA customers were without power at any one time. Mr. Bardacke expressed support for staff, board members, and Community Advisory Committee members affected by the fires. Residents have expressed dissatisfaction with SCE’s lack of communication. Mr. Bardacke added that CalCCA is reviewing what would happen to CCAs if SCE went bankrupt, and there is an agreement that creditors could not access money owed by SCE to CCAs. In response to ongoing PSPS events, the Ventura County Board of Supervisors agreed to study creating their municipal utility. Vice Chair Lopez is keeping communication open between the County and CPA.
Committee Member Parkhurst asked about the PSPS program and whether CPA has access to advanced weather forecasting technologies because many of his constituents are concerned about mudslide vulnerability after heavy rains. Mr.
Bardacke responded that CPA subscribes to private weather monitoring stations and utilizes publicly available weather models. In response to Committee Member Gold’s questions about the loss of the approximately 5,000 customer accounts, staff stated that they are still trying to get the exact street addresses of the homes and small businesses affected; there is no impact on Resource Adequacy (RA) needs or CPA’s pre-paid bonds at this time. In response to Committee Member Monteiro’s question about customers without power, staff explained that they know the regions and circuits affected but have not yet identified specific customer accounts. Staff clarified for Chair Klein Lopez that SCE could access the Wildfire Insurance Fund if their equipment were found to have started a fire.
3. Review Draft Agenda for the February 6, 2025, Board of Directors Meeting Mr. Bardacke presented the consent and regular agenda items.
Committee Member Parkhurst asked why the staffing budget was under budget, and staff noted that CPA had not used any contingency funds, hiring had been slower than anticipated, and the Cost-of-Living Adjustment was budgeted for a 5% increase but came in at 3.2%.
4. Receive Presentation on Interim Rate Adjustment Options and Provide Recommended Action to the Board of Directors
Mr. Bardacke discussed the changes approved to SCE’s rates and their impact on CPA’s rates. In December, the CPUC allowed SCE to decrease their generation rates and increase delivery rates, resulting in a 7% total bill increase for most CPA residential customers. An interim rate adjustment would provide customers with near-term rate relief while staying on track to meet financial and competitiveness goals over the next two years. Staff prepared three interim rate adjustment options for the Executive Committee’s consideration.
Mr. Bardacke shared that staff budgeted conservatively for the summer months and came out $40 million ahead. Two large long-term PPAs came online early, reducing the costs of renewable energy purchases. Also, pre-paid bonds led to cost savings beyond budget, and staff had already planned a significant rate reduction in the upcoming regular rate cycle. Mr. Bardacke summarized the options, comparing rates to SCE and noting projected contributions to net position, revenue reduction, and projected reserve percentages. Option 1 has total bill rate comparisons similar to those as of October 2024 and contributes approximately $26 million to CPA’s net position; Option 2 targets the total bill comparison of the Lean product is targeted to be at parity with SCE with -$2million contribution to CPA’s net position; Option 3 returns total bill comparison targets to the levels in July 2024 with a -$12 million contribution to CPA’s net position. Mr. Bardacke stated that Option 2 would help CPA stay ahead and provide greater flexibility in the next fiscal year
Chair Klein Lopez thanked CPA staff for working on the deadline over the holidays and expressed her disappointment in the CPUC process and decision. Committee Member Monteiro asked if litigation is an option and if CPUC staff rather than commissioners drove the decision. Staff responded that litigation had not been considered because the courts would probably pay deference to an independent constitutional body. Staff indicated that legislators in Sacramento evaluate commissioners based on the rates paid by bundled ratepayers. The Committee agreed to recommend Option 2 to the Board of Directors.
5. Receive Presentation on 2025 Board Outlook
Mr. Bardacke presented an overview of major items coming before the Board in 2025, including the annual Board retreat scheduled for mid-June. Mr. Bardacke noted that new directors will be coming on board in the first quarter of the year; the Board will address CPA’s conflict-of-interest code, 2025 and 2026 energy product content, and the next phase of pre-pay bonds. Toward the end of the year, the Board may consider asset ownership related to energy production, which may necessitate organizational changes.
COMMITTEE MEMBER COMMENTS
Chair Klein Lopez remarked that the region relies on affordable and consistent power, especially during fire disasters, and encouraged Board members to tap into CPA as a resource for their communities.
ADJOURN
Chair Klein Lopez adjourned the meeting at 2:58 p.m.