MINUTES
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, February 6, 2025, 2:00 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Board members participated from the following locations:
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91301
Clean Power Alliance
Diana Mahmud Board Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Whittier City Hall
Admin Conference Room
13230 Penn Street
Whittier, CA 90602
Ventura County Government Center
Point Mugu Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
Beverly Hills City Hall
2nd Floor
Room 280B
Beverly Hills, CA 90210
CALL TO ORDER & ROLL CALL
Chair Klein Lopez called the meeting to order at 2:00 p.m. and Gabriela Monzon, Clerk of the Board, conducted roll call.
PLEDGE OF ALLEGIANCE
Director Maloney led the Pledge of Allegiance
Roll Call
1 Agoura Hills Deborah Klein Lopez Chair Present
2 Alhambra Jeff Maloney Director Present
3 Arcadia Absent
4 Beverly Hills Julian Gold Alternate Remote
5 Calabasas Ed Albrecht Director Remote
6 Camarillo Susan Santangelo Director Remote
7 Carson Cedric Hicks Director Remote
8 Claremont Jennifer Stark Alternate Present
9 Culver City Yasmine-Imani McMorrin Director Present
10 Downey Horatio Ortiz Director Remote
11 Hawaiian Gardens Absent
12 Hawthorne Alex Monteiro Director Present
13 Hermosa Beach Raymond Jackson Director Remote
14 Los Angeles County Absent
15 Malibu Absent
16 Manhattan Beach David Lesser Director Remote
17 Monrovia Edward Belden Director Present
18 Moorpark Chris Barrett Director Remote
19 Ojai Michelle Ellison Alternate Remote
20 Oxnard Bert Perello Director Remote
21 Paramount Adriana Figueroa Alternate Remote
22 Port Hueneme Laura Hernandez Director Remote
23 Redondo Beach Absent
24 Rolling Hills Estates Steve Zuckerman Alternate Remote 25 Santa Monica Gleam Davis Alternate Present
26 Santa Paula Jenny Crosswhite Director Present
27 Sierra Madre Robert Parkhurst Director Present
28 Simi Valley Rocky Rhodes Director Present
29 South Pasadena Omari Ferguson Director Present
30 Temple City Ed Chen Director Present
31 Thousand Oaks David Newman Director Remote
32 City of Ventura Absent
33 Ventura County Vianey Lopez Vice Chair Present
34 West Hollywood Absent
35 Westlake Village Ray Pearl Director Remote
36 Whittier Mary Ann Pacheco Director Remote
All votes are unanimous unless otherwise stated. Redlines denote factual corrections to the record.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the December 5, 2024, Board of Directors Meeting
2. Approve and Authorize the Chief Executive Officer to Execute Amendment No. 3 to the TRC Solutions, Inc. Professional Services Agreement Extending the Agreement by 18 Months and Increasing the Not-To-Exceed Amount to $596,220 for the Duration of the Renewal Term
3. Approve a Professional Services Agreement with Langan CA, Inc. for Geographic Information System (GIS) Services and a GIS Web Browser Tool with a Not-To-Exceed Amount of $100,000 Per Contract Year for a 1-Year Term, with an Option to Extend for an Additional 1-Year Renewal Term for a Not-To-Exceed Amount of $100,000 for a Total Not-To-Exceed Amount of $200,000
4. Approve and Authorize the Chief Executive Officer to Execute Two Memoranda of Understanding for Pre-Apprenticeship Training Programs with Total Funding in the Amount of $993,000 Consisting of:
A. An MOU for a 3-Year Term with Flintridge Center in the Total Amount of $435,000; and,
B. An MOU for a 3-Year Term with Women in Non-Traditional Employment Roles in the Total Amount of $558,000
5. Receive and File Monthly Community Advisory Committee Report Motion: Director Rhodes, Simi Valley
Second: Director Parkhurst, Sierra Madre
Vote: The consent agenda was approved by roll call vote. Directors Stark, Zuckerman, and Ferguson abstained. Directors Figueroa and Pearl abstained from Item No. 1 only.
REGULAR AGENDA
Action Items
6. Adopt Resolution 25-02-079 to Approve New Rates for Phases 1-6 Customers Effective March 1, 2025, Consistent with the 2025 Interim Rates Adjustment Approach, Specified Therein
Ted Bardacke, Chief Executive Officer, discussed the need for a rate adjustment.
SCE's 9 percent decrease in generation rates plus an unfavorable California Public Utilities Commission (CPUC) decision negatively impacted CPA's competitive position. Residential total bill premiums now range from 7 percent for Lean Power to 13 percent for 100% Green Power, with most CPA residential customers receiving an approximate 9 percent increase in their total bills due to an SCE delivery rate increase. The Executive Committee recommended an approach that would allow CPA to stay close to budget for Fiscal Year 2024-2025, significantly improve CPA’s competitive position, and reduce customer bills.
Mr. Bardacke presented figures showing how the recommended adjustments would compare to SCE rates, contribute to CPA’s net position, and impact reserves. The goal is to position CPA to weather future rate and market volatility, progress toward the Board’s maximum 50 percent reserve target in the next fiscal year and provide customers with rate relief before the next rate-setting cycle.
Staff requested that the Board adopt an interim rate adjustment for residential and small and medium business customers based on a reserve percentage target of 40 to 44 percent and CPA’s projected Fiscal Year 2024-2025 cost of service, such that the 100% Green Power rate product targets a 6 percent total bill premium compared to SCE rates as of January 1, 2025, Clean Power targets a 1 percent total bill premium compared to SCE rates as of January 1, 2025, and Lean Power targets a 0 percent total bill discount compared to SCE rates as of January 1, 2025.
For large commercial, pumping and agriculture, and street and area lighting customer rate classes, known as subset rates, the Board was asked to adjust rates based on a reserve percentage target of 40 to 44 percent and CPA’s projected Fiscal Year 2024-2025 cost of service.
Chair Klein Lopez thanked the Executive Committee for the recommendation, which aims to reduce cost impacts on the customer, and remain financially stable.
The recommendation would be in effect for four months until new rates are set in the standard annual rate setting cycle. Directors Maloney and Rhodes expressed their support for the recommendation, with Director Rhodes supporting a truncated rate setting process when the proposal is to reduce rates. Director Gold also supported the recommendation and credited staff for achieving a healthy, stable reserve.
Staff clarified for Director Zuckerman that SCE is not currently offering a 100 percent renewable energy rate to new customers; instead, there is a waitlist for that rate that is at least two years long. In response to Director Lesser’s question about reserves in an emergency, staff said CPA has 171 days of liquidity on hand, a robust credit line, and healthy contingency funds to absorb any shock to the finances. Director Figueroa asked if staff was prepared to notify customers regarding SCE’s role in rate increases; staff suggested using a chart that shows how CPA’s rates have gone up and down over time and explained that the CPUC sometimes favors bundled customers rather than CCA-served customers. Chair Klein Lopez stated that she and Supervisor Horvath had met with CPUC representatives and CPA’s proposals were rejected without explanation.
Motion: Director Gold, Beverly Hills
Second: Director Rhodes, Simi Valley
Vote: Item 6 was approved by a roll call vote.
7. Approve and Authorize the Chief Executive Officer to Execute the following:
A. A15-Year Renewable Power Purchase Agreement with Cape Generating Station 2, LLC; and,
B. Amendment No. 1 to the Original Renewable Power Purchase Agreement Between CPA and Cape Generating Station 2, LLC
John McNamara, Director of Structured Contracts, presented the Cape Station Power Purchase Agreement (PPA) and Amendment. The first is a 15-year incremental geothermal contract, and the second is an amendment to the existing 15-year geothermal contract. The incremental capacity will provide additional renewable energy deliveries in hours when wind and solar resources do not produce energy.
A 2021 CPUC decision requires CPA to procure 679 MW of new reliable capacity between 2023 and 2026, including 59 MW of baseload renewables such as geothermal or biomass. Opportunities for new geothermal resources are limited due to resource-dependent sitting potential, mostly outside of CAISO or out of state, and lack of transmission capacity into CAISO. CPUC’s recent Slice of Day Resource Adequacy program reform has made resources like Cape Station highly valuable for RA. Cape Station has been the only resource staff has been able to identify to meet its MTR baseload renewables compliance.
Director Parkhurst, Chair of the Energy Committee, inquired about the technology used at Cape Station, and staff responded that horizontal drilling allows for one injection that utilizes multiple sideways wells, improving production at the well.
Director Parkhurst expressed support for the proposals as they are critical to meeting MTR compliance with technology that creates reliable baseload 24/7 energy. In response to Director Crosswhite’s question about CPA continuing to search for renewable energy, staff stated they continue to solicit eligible resources and have met with developers over the years working on such projects, in particular geothermal energy from the Salton Sea in the Imperial Valley. Director Rhodes encouraged staff to seek alternative projects as CPA does not have a backup project if this fails. He also expressed concern about price-gouging as these energy products become scarcer.
Director Newman inquired about the available labor force for the project, and staff responded that the drilling technology had been borrowed from the oil industry, so there are workers trained in those techniques and close enough to travel to the project site. As geothermal production grows, the workforce will grow as well. Staff clarified for Director Ferguson that once interconnection rights into California are established, the developer will have a pathway to a Generator Interconnection Agreement (GIA). In response to Director Zuckerman’s inquiry about Fervo’s performance, Mr. McNamara explained that the project has until 2026 to secure transmission rights and then meet a construction start date. Otherwise, the contract will be terminated.
Motion: Director Parkhurst, Sierra Madre
Second: Director Monteiro, Hawthorne
Vote: Item 7 was approved by roll call vote. Director Ferguson abstained.
8. Approve Salary Grades for CPA Employees;
B. Adopt Resolution No. 25-02-080 Approving the Updates to CPA’s Employee Handbook; and,
C. Approve Amendment of General Counsel Employment Contract Extending the Length of the Contract by 1.5 Years to June 30, 2028, at a Base Salary of $469,864 Effective February 16, 2025, Commensurate with CPA Staff at the Same Salary Grade as the General Counsel
Monique Edwards-Greer, Chief Administrative Officer, provided background information regarding last year’s compensation and benefits study and explained CPA’s compensation philosophy and how it compares to four market sectors.
The study showed that CPA’s overall placement for all positions is generally in the 3rd Quartile. This differentiation becomes clearer when senior executive positions (six in total) are analyzed separately. As the only employee besides the CEO with a direct contract with the Board, the General Counsel has seen their salary fall behind. Regarding the Caregiver Leave program, Dr. Edwards-Greer stated it provides up to six weeks of paid leave annually with a total cap of 12 weeks throughout an employee’s employment with CPA. The employee must have worked at CPA for one year, provide care for a parent or stepparent, and show certification from a health care provider. If caregiving demands go beyond six weeks, the employee can apply for Paid Family Leave and/or State Disability benefits and use sick or vacation time to get to full salary.
Regarding the General Counsel’s salary, Director Lesser asked if comparable organizations were surveyed, to which staff responded that Mercer reviewed market data and job descriptions for all C-suite positions, including the General Counsel. Staff then clarified to Director Pearl that the General Counsel’s salary adjustment was equivalent to a 7 percent salary adjustment. Director Barrett asked if staff had considered adding children to the Caregiver Leave program, and staff replied that, for now, the benefit is limited to parents; however, adding children could be a possibility in the future. Director Figueroa asked about the impact on CPA’s operations if many employees in one department take the allotted time at once; staff stated that from experience, employees do not typically take the full allotment at once but divide their leave into smaller increments and noted that leave must be approved. Director Ferguson supported the program as many employees have elderly parents to care for.
Motion: Director Monteiro, Hawthorne
Second: Director Davis, Santa Monica
Vote: Item 8 was approved by a roll call vote. Director Pearl voted No.
Information Item
9. Receive Quarterly Communications Report and 2025 Look Ahead Presentation Item 9 will be rescheduled for a future Board meeting
MANAGEMENT REPORT
Ted Bardacke, Chief Executive Officer, reported on the January 2025 fires, related power outages, and the impacts on CPA customers, noting that Altadena and Malibu experienced the longest Public Safety Power Shutoff (PSPS) period in history. CPA has lost several thousand customers and will not serve them again until the rebuilding process occurs. A benefit of CPA’s extensive customer base is that these losses, based on information currently available, will not have a material financial impact on CPA.
Mr. Bardacke stated that although the cause of the fires has not been officially identified, many have asked if SCE caused them. Mr. Bardacke reported that CPA will be involved in recovery, rebuilding, and increasing resilience in areas vulnerable to PSPS. The anticipated focus will be threefold: to review CPA’s customer programs to increase resiliency and wildfire preparedness in each household, rebuild at the individual building level, and build community resiliency. Additionally, round two of the Power Ready Program is open, providing free solar plus backup energy systems to member agencies, and up to 250 sites can be assessed, including three Los Angeles County libraries that serve as cooling centers during high-heat weather.
Director Ferguson commented that undergrounding utilities would be tremendously beneficial and added that undergrounding may be more easily facilitated during rebuilding in areas affected by the wildfires. Staff responded that the City of Berkeley, which is part of a CCA, has pursued undergrounding using a similar structure as street-lighting special assessment districts. In response to Director Zuckerman's inquiry regarding changes at the federal level impacting the renewable energy industry, staff stated that they are focusing on tax policy, particularly the tax/budget reconciliation process.
Director Albrecht stated that undergrounding would be necessary to avoid destruction from another wildfire and suggested the Army Corps of Engineers as an agency to do that work.
Director Rhodes suggested that CPA urge SCE to change their benchmarks for initiating PSPS events to reduce them, especially if SCE is found not to have caused the wildfires and if it has succeeded at hardening infrastructure against fires. Director Gold stated that SCE indicated it had likely sparked one of the Los Angeles area fires.
COMMITTEE CHAIR UPDATES
Director Parkhurst, Chair of the Energy Committee, reported on the Clean Energy Innovation Solicitation program, recently approved by the Energy Committee. The goal is to find emerging technologies and new business models to expand CPA’s energy portfolio.
BOARD MEMBER COMMENTS
Director Crosswhite reported that she attended Lobby Day in Sacramento along with CPA staff. The group met with representatives of CalCCA and other CCAs and newly elected state legislators. Topics discussed were affordability related to delivery, the Cap-and-Trade Bill, wildfire recovery, the Moss Landing battery energy storage fire, and Resource Adequacy (RA) issues.
REPORT FROM THE CHAIR
Chair Klein Lopez acknowledged the destruction caused by the wildfires and remarked that CPA will participate in the rebuilding efforts. She reminded the Board that CPA’s mission is to reduce extreme weather events by supporting the use of renewable energy.
In 2024, CPA customers helped avoid the release of four billion pounds of GHG emissions.
ADJOURN
Chair Klein Lopez adjourned the meeting at 4:21 p.m. in memory of those who lost their home in the recent fires.