REVISED
Energy Planning & Resources Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, January 22, 2025
12:15 p.m.
Visit CPA’s YouTube Channel to watch a Live Stream of the Meeting *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:
Manhattan Beach City Hall
City Manager Conference Room
1400 Highland Avenue
Manhattan Beach, CA 90266
Alhambra City Hall
Conference Room A
111 S. First St.
Alhambra, CA 91801
Arcadia City Hall
Council Chambers Conference Room
240 W. Huntington Drive
Arcadia, CA 91007
Sierra Madre City Hall
Council Chambers
232 W. Sierra Madre Blvd.
Sierra Madre, CA 91024
West Hollywood City Hall
3rd Floor Conference Room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
City of Oxnard Service Center 1
East Conference Room
214 South C Street
Oxnard, CA 93030
Carson City Hall
City Manager’s Conference Room
701 East Carson Street
Carson, CA 90745
County Sanitation District
Conference Room D
1955 Workman Mill Road
Whittier, CA 90601
Remote location added
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 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 & ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the October 30, 2024, Energy Committee Meeting
2. Receive and File October, November, and December 2024 Risk Management Team Reports
REGULAR AGENDA
3. Oral Update from the Vice President of Power Supply
4. Receive Presentation on the Clean Energy Innovation Solicitation and Provide Feedback
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING FEBRUARY 26, 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.
Staff Report – Agenda Item 1
To: Energy Planning & Resources Committee
Subject: Approve Minutes from the October 30, 2024, Energy Committee Meeting
Date: January 22, 2025
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Energy Planning & Resources Committee
MINUTES
Energy Planning & Resources Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, October 30, 2024, 12:15 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:
Manhattan Beach City Hall
City Manager Conference Room
1400 Highland Avenue
Manhattan Beach, CA 90266
Clean Power Alliance Office
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Alhambra City Hall
Conference Room A
111 S. First Street
Alhambra, CA 91802
City of Oxnard Service Center 1
East Conference Room
214 South C Street
Oxnard, CA 93030
West Hollywood City Hall
3rd Floor Conference Room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
Sierra Madre City Hall
Council Chambers
232 W. Sierra Madre Blvd.
Sierra Madre, CA 91024
Arcadia City Hall
Council Chambers Conference Room
240 W. Huntington Drive
Arcadia, CA 91007
Carson City Hall
City Manager’s Conference Room
701 East Carson Street
Carson, CA 90745
CALL TO ORDER & ROLL CALL
Chair Parkhurst called the meeting to order at 12:15 p.m. and Annie Mendoza, Deputy Clerk of the Board, conducted roll call.
ROLL CALL
Alhambra Jeff Maloney Committee Member Absent
Arcadia Michael Cao Committee Member Absent
Carson Reata Kulcsar Committee Member Remote
Manhattan Beach David Lesser Committee Member Remote
Oxnard Kathleen Mallory Committee Member Remote
Sierra Madre Robert Parkhurst Committee Chair Remote
South Pasadena Diana Mahmud Committee Member Remote
West Hollywood Chelsea Byers Committee Member Remote
All votes are unanimous unless otherwise stated.
Energy Planning & Resources Committee Item 1
Energy Planning & Resources Committee
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the September 25, 2024, Energy Committee Meeting
2. Receive and File September 2024 Risk Management Team Report Motion: Committee Member Mahmud, South Pasadena
Second: Committee Member Byers, West Hollywood
Vote: The consent agenda was approved by a roll call vote
REGULAR AGENDA
3. Oral Update from the Vice President of Power Supply
Lindsay Descagnia, Vice President of Power Supply, reported on projects expected to be active by the end of the year and on CPA’s Resource Adequacy (RA) filing. The CPUC is in the process of reviewing the filing.
Committee Member Mahmud inquired about supply chain and labor shortages.
Staff responded that developers have been stocking up on supplies to prevent delays and that projects have not experienced labor challenges. Staff confirmed for Chair Parkhurst and Committee Member Mahmud that they will post quarterly reports on executed PPAs on the member agency portals.
4. (a) Approve the 2024 Queue Cluster 15 RFO Shortlists and Waitlists for Both Full Capacity Delivery Status and Energy Only as Recommended by the RFO Review Team (b) Authorize Staff to Enter Into Bilateral Exclusivity Agreements With FCDS QC 15 Proposals With a Generation Component as Recommended by the RFO Review Team
Lindsay Descagnia, Vice President of Power Supply, presented background information on CAISO’s Interconnection Process Enhancements (IPE), noting that CAISO was overwhelmed with project applications. To narrow down the number of projects, LSEs like CPA can allocate Commercial Interest Points to early-stage Queue Cluster 15 (QC 15) proposals, boosting the most viable in the CAISO rankings. CPA’s 2024 Clean Energy and Reliability RFO for QC 15 projects received a robust response. In October 2024, a Review Team of Committee members and CPA staff reviewed the projects and produced a shortlist and waitlist.
Ms. Descagnia discussed the projects’ megawatt generation range, expected online dates, and scoring. The Review Team recommended that staff receive flexibility to award points bilaterally under certain conditions. Staff is seeking approval of the 2024 QC 15 RFO recommended shortlist and waitlist for FCDS and EO and authorization to enter into bilateral exclusivity agreements with proposals with a generation component.
Ms. Descagnia noted that the new process presents a challenge as CPA evaluates projects at a much earlier stage of development. Projects are evaluated on qualitative metrics, as well as the percentage of subscribed capacity at Points of Interconnection and estimated total IPE scores. Ms. Descagnia described product types, eligible resources for each, and additional QC 15 metrics considered in the selection discussions. Ms. Descagnia reviewed CPA’s point allocation strategy, noting that CPA received the third most points among 70 LSEs. Staff will need flexibility during shortlist negotiations. Ms. Descagnia presented a breakdown of Energy Planning & Resources Committee Item 1
Energy Planning & Resources Committee
RFO offers. There were 74 FCDS and 23 Energy Only. The QC 15 projects were ranked using CPA’s standard evaluation criteria. The Review Team recommended that CPA staff have the authority to enter into bilateral exclusivity agreements because of the December 23, 2024, deadline for allocating commercial interest points.
In response to Committee Member Lesser’s question about generation, staff stated that these projects amount to less than 10% of CPA’s total generation. Staff indicated that the projects with points have the potential to produce power but may not end up as part of CPA’s portfolio. Staff clarified for Committee Member Kulcsar that some proposed projects are more viable than others and that CPA’s participation helps identify the best prospects. Committee Member Mahmud commented that the QC 15 process allows CPA to survey a competitive market and identify projects that weren’t ready for this RFO; also, CAISO may discover where some substations need to be expanded. Staff explained that projects scoring low on environmental stewardship were rejected, as were projects with no site control. Projects with high development scores were given preference.
Motion: Committee Member Mahmud, South Pasadena
Second: Committee Member Byers, West Hollywood
Vote: Items 4a and 4b were approved by a roll call vote
COMMITTEE MEMBER COMMENTS
None
ADJOURN
Chair Parkhurst adjourned the meeting at 1:15 p.m.
Energy Planning & Resources Committee Item 1
Staff Report – Agenda Item 2
To: Energy Planning & Resources Committee
From: Lyon Hardgrave, Director, Energy Risk Management
Approved By: Ted Bardacke, Chief Executive Officer
David McNeil, Chief Financial Officer
Subject: Receive and File October, November, and December 2024 Risk Management Team Reports
Date: January 22, 2025
October 2024 RMT REPORT
Key Actions
• Reviewed the counterparty credit exposure summary
• Reviewed July 2024 day-ahead load forecast performance • Reviewed September 2024 market performance
• Reviewed energy positions and approved 2025-2028 hedge proposal for monthly RFO
• Reviewed positions for Resource Adequacy (RA), RPS and Carbon-Free energy products (CF)
• Reviewed 2024-2025 COD impacts on RA compliance
• Reviewed the status of Rexford and Desert Quartzite test energy • Reviewed the 2025-2027 slice of day RA position
• Reviewed Energy Risk Management Policy (ERMP) compliance for RA, REC, CF, and Energy
• Reviewed long-term energy contract amendments and terminations • Reviewed October 2024 CRR Allocations
• Reviewed and approved the Negative REC Price Strategy
Energy Planning & Resources Committee Item 2
Policy Compliance
Policy Deviation Required Action
Beginning in April 2024,
the energy hedge position
for the third quarter of
2027 (July to September)
exceeded the maximum
hedge limit for that period.
None.
This policy deviation arises from CPA continuing to enter into long term contracts for renewable energy consistent with its objective to reduce exposure to the short-term renewable energy market.
This deviation is expected to be resolved by Q3 2025 as the electricity production period nears and the
corresponding policy hedge limit maximums increase
above the level of energy hedges under contract.
November 2024 RMT REPORT
Key Actions
• Reviewed the counterparty credit exposure summary
• Reviewed August 2024 day-ahead load forecast performance • Reviewed October 2024 market performance
• Reviewed energy positions and approved 2025-2028 hedge proposal for monthly RFO
• Reviewed positions for Resource Adequacy (RA), RPS and Carbon-Free energy products (CF)
• Reviewed 2024-2025 COD impacts on RA compliance
• Reviewed the status of Rexford and Desert Quartzite test energy • Reviewed the 2025-2027 slice of day RA position
• Reviewed 2025 system & flex RA position
• Reviewed Energy Risk Management Policy (ERMP) compliance for RA, REC, CF, and Energy
• Reviewed long-term energy contract amendments and terminations • Reviewed November 2024 CRR Allocations
• Reviewed the Negative REC Price Strategy
Energy Planning & Resources Committee Item 2
Policy Compliance
Policy Deviation Required Action
Beginning in April 2024,
the energy hedge position
for the third quarter of
2027 (July to September)
exceeded the maximum
hedge limit for that period.
None.
This policy deviation arises from CPA continuing to enter into long term contracts for renewable energy consistent with its objective to reduce exposure to the short-term renewable energy market.
This deviation is expected to be resolved by Q3 2025 as the electricity production period nears and the
corresponding policy hedge limit maximums increase
above the level of energy hedges under contract.
December 2024 RMT REPORT
Key Actions
• Reviewed the counterparty credit exposure summary
• Reviewed September 2024 day-ahead load forecast performance • Reviewed November 2024 market performance
• Reviewed energy positions and approved 2025-2028 hedge proposal for monthly RFO
• Reviewed positions for Resource Adequacy (RA), RPS and Carbon-Free energy products (CF)
• Reviewed 2024 LT PPA Deliveries
• Reviewed 2024-2025 COD impacts on RA compliance
• Reviewed the 2025-2027 slice of day RA position
• Reviewed 2025 RA Purchase and Sale strategy
• Reviewed Energy Risk Management Policy (ERMP) compliance for RA, REC, CF, and Energy
• Reviewed long-term energy contract amendments and terminations • Reviewed December 2024 CRR Allocations
• Reviewed the Negative REC Price Strategy
Energy Planning & Resources Committee Item 2
Policy Compliance
Policy Deviation Required Action
Beginning in June 2024, the
renewable energy hedge ratio
exceeded the maximum hedge ratio
limit for 2027 due to the addition of
new renewable energy supply from a
PPA. Due to a calculation error, the
exceedance was not identified until
November 2024.
In November 2024, the renewable
energy hedge ratio exceeded the
maximum hedge ratio limit for 2028-
2030 due to a reduction in the
renewable energy product targets
that are used for long-term power
planning and position management.
None.
The deviations for 2027-2030 will resolve
themselves as CPA nears these years and the
maximum hedge ratio limits increase.
In the July 2025 annual ERMP update process,
CPA will consider increasing the maximum
hedge ratio limit for the Prompt Calendar Year
(PY) +2 and beyond to allow for a planning
margin to accommodate volumetric uncertainty
associated with electric consumption and
generation. This will align PY+2 and beyond with
the existing approach to maximum hedge ratio
limits in the current calendar year, PY and PY+1.
Adoption of higher hedge ratio limits in PY+2 and
beyond by the Board in July 2025 would cure the
2027-2030 renewable energy hedge ratio
deviations. CPA will also consider long-term
renewable energy product targets as part of the
2025 Integrated Resources Plan (IRP).
Beginning in April 2024, the energy
hedge position for the third quarter
of 2027 (July to September)
exceeded the maximum hedge limit
for that period.
None.
This policy deviation arises from CPA continuing
to enter into long term contracts for renewable
energy consistent with its objective to reduce
exposure to the short-term renewable energy
market.
This deviation is expected to be resolved by Q3
2025 as the electricity production period nears
and the corresponding policy hedge limit
maximums increase above the level of energy
hedges under contract.
ATTACHMENT
None.
Staff Report – Agenda Item 3
To: Energy Planning & Resources Committee
From: Lindsay Descagnia, Vice President, Power Supply
Subject: Oral Update from Vice President, Power Supply
Date: January 22, 2025
The VP will provide an overview of CPA’s power purchase agreement for the February Board meeting.
Staff Report – Agenda Item 4
To: Energy Planning & Resources Committee
From: John McNamara, Director, Structured Contracts
Reviewed By: Matt Langer, Chief Operating Officer
Lindsay Descagnia, Vice President, Power Supply
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Clean Energy Innovation Solicitation: Emerging Technologies and New Business Models
Date: January 22, 2025
RECOMMENDATION
Staff will provide a presentation on the item.
ATTACHMENT
1. Clean Energy Innovation Solicitation: Emerging Technologies and New Business Models Presentation
Clean Energy Innovation
Solicitation: Emerging
Technologies and New
Business Models
Energy Planning and Resource Committee
January 22, 2025
CPA intends to launch the Clean Energy Innovation Solicitation: Emerging Technologies and New Business Models (Innovation Solicitation) in early 2025.
The purpose of the Innovation Solicitation is to establish a process to intake proposals for early-stage projects for emerging technologies that would otherwise not be eligible to participate in CPAs Request For Offers (RFOs).
Submissions for new business models or procurement ideas that could be incorporated in CPA’s future RFOs or programs will also be accepted.
CPA will review emerging technology submissions on a rolling basis, twice a year, and will present findings to the Innovation Solicitation Review Team. 2 Executive Summary
The purpose of this presentation is to give an overview of the Innovation Solicitation and to solicit feedback from the Energy Committee prior to launching the Innovation Solicitation.
Agenda
Innovation Solicitation
Overview
Next Steps
3 Innovation
Solicitation
Overview
4 Solicitation Overview and Goals
The purpose of the Innovation Solicitation is to provide a process to submit innovative clean energy technologies that may not be ready for commercial application or ideas for new business models and programs Track 1 of the process will allow CPA to evaluate proposals for new technologies and provide selected projects with an agreement to aid in the progression of the early development stage and help attract financing Selected projects in Track 1 will be expected to re-submit a firm proposal to CPA when they are eligible to participate in a RFO or make a firm bilateral offer. If CPA declines the proposal, neither party will have any additional obligations to each other
Track 2 will allow for submission of proposals for new business models, contracting structures or partnerships with CPA which may be used to inform future RFOs or design of customer programs
5 Product Types and Eligibility
6 Track Description of Eligibility Location Minimum
Size (MW)
Latest
Expected
Commercial
Readiness
Date
1 Emerging clean renewable or carbon-free power
technologies or resources providing energy storage
capabilities
In CAISO or able to
deliver energy to
CAISO
1 2035
2* Proposals for new business models, contracting
structures or partnerships with CPA
Able to serve or
provide a benefit to
CPA and its
customers
N/A 2030
*Proposals for new technologies that also come with a new business model will be placed into Track 2
Solicitation Structure
CPA’s website will host all information about the Innovation Solicitation including instructions for submission
Participants will be able to submit questions, and staff will post a Q&A document to the website during the open submission period
Deadline for the first round of proposals will be May 2025, and will be followed by staff evaluation and a presentation to the Review Team
Track 1 proposals submitted after May 2025, will be reviewed on a rolling basis. The bi-annual review cycle will continue year-over-year
Track 1 Proposals:
Selected proposers will sign an agreement with CPA that indicates CPA’s early interest in the technology or project
o The agreement will require proposers to submit a refreshed, firm offer into a future CPA RFO after certain performance factors are met (e.g. interconnection application submitted, site identified)
Track 1 evaluation will largely be qualitative using the required project narrative as the primary source for evaluation and the offer template to aid in the assessment of project parameters Track 2 proposals will be reviewed and tracked by CPA staff and shared with relevant internal stakeholders for consideration on a more frequent basis
7 Evaluation Criteria
Track 1 Proposals will be evaluated based on the following factors, however, due to the diverse nature of potential responses, staff is not pre-defining the criteria for what constitutes a high, medium or low score for each evaluation criteria.
Commercial Viability
o Technology maturity and development stage (i.e. early-stage concept, partial designs developed, prototype built, beta testing, pilot stage ready etc.) o Demonstration of realistic and achievable schedule
o Economic feasibility – indicative pricing or costs estimate o Practicality of overall business plan to bring resource to market o Potential project risks and mitigation plans
Environmental Stewardship – Examples could include each project’s emissions and impact on the environment such as water and land usage
Innovation – Demonstration of a novel solution to an existing challenge Community Impact – Demonstration of benefit to the local community where the project is intended to be located
Track 2 submissions are for informational purposes only and will not have a formal evaluation criteria
8 NEXT STEPS
9 Solicitation Process/Timeline
• Staff presents evaluation of Track 1* results to Review Team • Review Team meets to develop selection recommended for Energy Committee consideration
• Selected Track 1 proposals are invited to enter an agreement • Deadline for initial/first round of Track 1 and Track 2 proposals - May 2025 • Intake initial proposals, perform quality control and evaluate all initial proposals received by June 11, 2025
• Proposer returns when ready to submit firm, eligible offer to an RFO or present a firm bilateral offer
• Announce Innovation Solicitation to market
• Recommended selection is presented to Energy Committee for approval • Review of Track 1* proposals submitted after May 2025 will be done bi-annually (in May and December)
*Track 2 submissions will be reviewed internally on a rolling basis