Energy Planning & Resources Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, March 26, 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
LA County Sanitation District
Conference Room D
1955 Workman Mill Road
Whittier, CA 90601
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
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.
Agenda Page 1 of 27
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.
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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 January 22, 2025, Energy Committee Meeting
2. Receive and File February 2025 Risk Management Team Report
REGULAR AGENDA
3. Receive Presentation on the 2025 Power Share Request for Offers Launch
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING APRIL 23, 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 of 27
Staff Report – Agenda Item 1
To: Energy Planning & Resources Committee
Subject: Approve Minutes from the January 22, 2025, Energy Committee Meeting
Date: March 26, 2025
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3 of 27
MINUTES
Energy Planning & Resources Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, January 22, 2025, 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
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
Arcadia City Hall
Council Chambers Conference Room
240 W. Huntington Drive
Arcadia, CA 91007
CALL TO ORDER & ROLL CALL
Chair Parkhurst called the meeting to order at 12:15 p.m. and Gabriela Monzon, Clerk of the Board, conducted roll call.
ROLL CALL
Alhambra Jeff Maloney Committee Member Remote
Arcadia Michael Cao Committee Member Remote
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
Energy Planning & Resource Committee Item 1
Agenda Page 4 of 27
South Pasadena Diana Mahmud Committee Member Remote
West Hollywood Chelsea Byers Committee Member Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no 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
Committee Member Mahmud inquired about the accuracy of CPA’s day ahead load forecast, which was found in the monthly Risk Management Team Report.
Staff responded that the variation between the forecast and actual averages is under five percent, which is not a concern to staff.
Motion: Committee Member Mahmud, South Pasadena
Second: Committee Member Lesser, Manhattan Beach
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, presented an update on the Cape Station project, stating that the Board will be reviewing an amendment to CPA’s existing 33 MW contract, allowing CPA to sign a new contract for an additional 18 MW of geothermal capacity. Ms. Descagnia clarified for Committee Member Mahmud that the project will employ new geothermal technology.
4. Receive Presentation on the Clean Energy Innovation Solicitation and Provide Feedback
Ms. Descagnia discussed that the new solicitation process was created because CPA staff frequently receives ideas and proposals for energy production, many of which deserve consideration. Under the formalized Innovation Solicitation, staff would receive and review submissions twice a year and forward recommendations to an Innovation Solicitation Review Team. Submissions would be sorted into one of two tracks.
Track 1 of the process will allow CPA to evaluate proposals and provide selected projects with an agreement to aid in the progression of the early development stage and help attract financing. Track 2 will allow proposals for new business models, contracting structures, or partnerships with CPA, which may be used to inform future RFOs or design customer programs.
Ms. Descagnia described the program’s solicitation structure and evaluation criteria. Track 1 projects are expected to have commercial viability, environmental stewardship, innovation, and community impact, whereas Track 2 submissions are for informational purposes only and will not have formal evaluation criteria. She closed her presentation with the program’s timeline and noted that the Energy Committee will be presented with recommendations in early July 2025.
Energy Planning & Resource Committee Item 1
Agenda Page 5 of 27
Committee Member Byers asked how staff would score innovation during evaluation and how the federal government administration may impact the program. Ms. Descagnia responded that this process is for technologies that haven’t been through any regulatory approval process or certified as a resource CPA has been using in its renewable portfolio or as a commercialized storage method. Staff also explained that CPA’s applications are made through State of California agencies, so there would be no impact; however, any federal land project may be affected. In response to Committee Member Lesser’s question about a budget for the cost of processing these submissions, Ms. Descagnia said the program is using staff time, already budgeted for, to review the proposals and then will produce an agreement that requires the developer to return with a firm offer that would be part of CPA’s regular RFO process. She also clarified that the developer could advance their project, especially in terms of funding, if they have an agreement with CPA, giving the project credibility.
Committee Member Mahmud asked about the factors that make a project ineligible for the RFO process, and staff responded they include a lack of an identified site and an active interconnection application. In response to Committee Member Mallory’s questions about community benefits and other factors contributing to the proposal's evaluation score, Ms. Descagnia emphasized that the proposal must not harm the environment and that providing benefits to disadvantaged communities would be a key consideration. As for ranking, a project that offers a renewable energy source like geothermal would be desirable. Chair Parkhurst asked for more information on what staff expect in Track 2 proposals. Staff responded that CPA’s program involving Haven Energy installing solar and storage on low-income homes is an example of a Track 2 type project that gets pitched to CPA. This solicitation process allows everyone with ideas to present them, not just entities that can get an appointment with staff.
Committee Member Mahmud stated that funding may have the most significant impact from changes in leadership in the federal government, adding that the program will probably save staff time because several proposals will be analyzed at one time. Committee Member Kulcsar proposed that the Energy Committee review some Track 2 proposals. Depending on the nature of the submissions, evaluation criteria like those used in Track 1 could be applied. In addition to expressing enthusiasm for the program, Chair Parkhurst asked that the Committee be given updates on both Track 1 and 2 submissions. Committee Member Lesser stated that he would appreciate any resource that would help him explain how CPA differs from SCE and help his constituents appreciate CPA’s mission. No formal vote was necessary.
COMMITTEE MEMBER COMMENTS
Committee Member Mahmud asked for an update on RFO projects. Staff responded that three projects are under negotiation and two should be completed by March, meeting set procurement targets. Chair Parkhurst expressed gratitude for the support given to CPA by its member agencies, especially as the renewable energy industry enters a challenging time.
ADJOURN
Chair Parkhurst adjourned the meeting at 12:56 p.m.
Energy Planning & Resource Committee Item 1
Agenda Page 6 of 27
Staff Report – Agenda Item 2
To: Energy Planning & Resource Committee
From: Lyon Hardgrave, Director, Energy Risk Management
Approved By: Ted Bardacke, Chief Executive Officer
David McNeil, Chief Financial Officer
Subject: Receive and File February 2025 Risk Management Team Report Date: March 26, 2025
February 2025 RMT REPORT
Key Actions
• Reviewed the counterparty credit exposure summary
• Reviewed November 2024 day-ahead load forecast performance • Reviewed January 2025 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 2025 LT PPA Deliveries
• Reviewed 2025 COD impacts on RA compliance
• Reviewed the 2025-2027 slice of day RA position
• Reviewed 2025 RA Purchase and Sale strategy
• Reviewed a proposal for IST Sales strategy
• Reviewed Energy Risk Management Policy (ERMP) compliance for RA, REC, CF, and Energy
• Reviewed long-term energy contract amendments and terminations • Reviewed February 2025 CRR Allocations
• Reviewed the Negative REC Price Strategy
Agenda Page 7 of 27
Energy Planning & Resource 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 are 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.
Agenda Page 8 of 27
Staff Report – Agenda Item 3
To: Energy Planning & Resources Committee
From: John McNamara, Director, Structured Contracts
Reviewed by: Lindsay Descagnia, Vice President, Power Supply Approved By: Ted Bardacke, Chief Executive Officer
Subject: 2025 Power Share Request for Offers (RFO) Launch Date: March 26, 2025
RECOMMENDATION
Staff will provide a presentation on the item.
ATTACHMENT
1. 2025 Power Share RFO Presentation
Agenda Page 9 of 27
2025 Power Share Request
for Offers (RFO) Launch
Clean Power Alliance Energy Planning and Resource Committee March 26, 2025
Agenda Page 10 of 27
Summary
2 CPA plans to run four energy solicitations in 2025
Today’s informational briefing in on the upcoming Power Share solicitation; no action requested Power Share is a program that provides income-qualified customers 100% renewable energy at a 20% bill discount from eligible resources located in and around Disadvantaged Communities (DACs)
Above market procurement costs (if any) and bill discounts are covered by the CPUC CPA has a capacity allocation under the Power Share program from the CPUC, which was recently expanded
Staff plans to launch its fourth Power Share RFO, the 2025 Power Share RFO, in June to solicit offers to fill the remaining program capacity allocation CPA must obtain CPUC approval to launch the next Power Share RFO CPA’s Total Allocation (MW)CPA’s Remaining Allocation (MW)
18.285 11.015
Agenda Page 11 of 27
2025 RFO Schedule
3 Date 2025 Power
Share RFO
2025 Clean Energy
and Reliability RFO
Innovation
Solicitation
2025 Power
Ready RFO
April 2025 RFO Overview for Energy
Committee
RFO Launch
May 2025 RFO Launch
June 2025 RFO Launch Proposals Due Proposals Due
July 2025 RFO Longlist Presentation for
Energy Committee
Shortlisting
August 2025
September 2025 Shortlisting
October 2025 Proposals Due
November 2025
December 2025 Shortlisting RFO Launch
January 2026 Proposals Due
February 2026 Shortlisting
Dates on this slide are subject to change
Agenda Page 12 of 27
Power Share Program Background
4 In June 2018, the CPUC approved D. 18-06-027, creating the Disadvantaged Communities – Green Tariff ("DAC-GT") and Community Solar Green Tariff ("CS-GT") programs.
CPA’s branded names for the DAC-GT and CS-GT programs are Power Share and Community Solar
• CPA was initially allocated a total of 12.19 MW for its DAC-GT program and 3.37 MW for its CS-GT program In June 2024, the CPUC issued D. 24-05-065 modifying the DAC-GT and CS-GT programs and as a result CPA’s DAC-GT program capacity was increased to 18.285 MW.
Future solicitations for the CS-GT program were discontinued.
CPA's capacity under the Power Share program can provide energy for ~10,000 customers • Currently CPA’s Power Share program is fully enrolled • Power Share customers are served by interim resources procured from SCE; these customers will transition to being served by CPA’s own resources as they come online (see next slide) Agenda Page 13 of 27
CPA’s Power Share Portfolio
5 CPA has 12 executed contracts for its Power Share program.
Two of the projects, the Pivot Beverly and San Gabriel projects in Pico Rivera, are online. The rest are in development with most expected CODs in 2025.
Counterparty Project Program Capacity (MW) COD Location Pivot Energy Pivot - Beverly Community Solar 0.4 3/3/2025 Pico Rivera Pivot Energy Pivot - San Gabriel Community Solar 0.27 3/3/2025 Pico Rivera Prologis Dominguez DAC-GT 0.96 Q2 2025 Carson
Prologis El Segundo DAC-GT 0.64 Q2 2025 Hawthorne
Prologis Wilmington 1 DAC-GT 1.8 Q2 2025 Carson
Prologis Wilmington 2 DAC-GT 0.6 Q2 2025 Carson
Prologis Carson 1 DAC-GT 0.68 Q3 2025 Carson
Prologis Commerce 4 DAC-GT 1.24 Q3 2025 Commerce
Prologis Eaves 1 DAC-GT 0.68 Q3 2025 Commerce
Prologis Eaves 3 DAC-GT 0.67 Q3 2025 Commerce
Prologis Southbay 20 Community Solar 1.32 Q4 2025 Carson Prologis Southbay 6 Community Solar 1.38 Q1 2026 Carson Agenda Page 14 of 27
2025 Power Share RFO Design/Schedule
6 CPA submits an Advice Letter to the CPUC to request approval of the RFO design and RFO materials to ensure Power Share is implemented consistent with CPUC rules The 2024 June CPUC decision allows for the inclusion of storage resources and establishes a process to update the program's cost cap. It may take several months before the cost cap is finalized.
CPA submitted an Advice Letter consistent with CPUC prior rules on March 18 CPUC may suspend approval of CPA’s Advice Letter until the rules are updated and request CPA to resubmit its Advice Letter consistent with the updated rules If CPA does not procure to its program capacity from this RFO, it will need to launch additional Power Share RFOs
CPA expects future Power Share solicitations to be implemented under the updated CPUC rules Agenda Page 15 of 27
Key 2025 Power Share RFO Design Updates
7 Commercial Online Date: Projects must have an online date no later than 12/31/2028 Project Size: The maximum project size will be 11 MW to target projects that will fill, but not exceed, CPA’s remaining program capacity need
Contract Term: The contract term was increased from 15 years to 20 years to increase the length of time customers could receive bill savings from each project Collateral Requirements: Collateral requirements were increased for $90/kW to $105/kW to reflect CPA’s pro forma position
Solicitation Length: RFO to be open for four months with one round of Q&A • This is a month shorter period than for previous RFO’s, due to DAC-GT project eligibility being simpler than CS-GT projects, which required a community sponsor
Agenda Page 16 of 27
2025 Power Share RFO Schedule
8 Date Item
June 2025 RFO issuance *
July 2025 Bidder webinar with Q&A
July 2025 Deadline for bidders to submit Q&A Questions
August 2025 Q&A responses posted to CPA RFO website
October 2025 Deadline for bidders to submittal proposals December 2025 Bidders notified of shortlist status
January – March 2026 Power Purchase Agreement negotiations and awards April – May 2026 Submit executed PPAs to CPUC for approval* *The Power Share RFO schedule assumes CPA’s Advice Letter is approved by the end of May, if not, the schedule will need to be adjusted accordingly
**CPA is required to submit PPAs for CPUC approval within 180 days of bidder’s receipt of shortlist notification Agenda Page 17 of 27
Appendix
Agenda Page 18 of 27
9 Power Share Program Requirements
CPA must implement the Power Share program consistent with CPUC guidelines • CPUC determines customer and project eligibility
• CPUC approves CPA's program design, solicitations, and form of Power Purchase Agreements • Project energy pricing is subject to a confidential price cap set by the CPUC Power Share customers will receive energy from new Renewable Portfolio Standard (RPS)-eligible projects located within 5 miles of a DAC in Southern California Edison (SCE) territory Project eligibility:
• 500 kW - 20 MW in size
• New renewable generating facilities (i.e. solar, wind, etc.) Qualifying customers are CPA customers eligible for the CARE or FERA low-income programs and live within a DAC in CPA territory
• Enrolled customers will receive 100% renewable energy based on their monthly usage at a 20% bill discount The CPUC reimburses CPA for program costs including:
• Above-market procurement costs; the 20% discount on customers’ total electric bill; CPA’s administration costs and CPA's marketing, education and outreach program implementation costs Agenda Page 19 of 27
10 Evaluation Criteria
Individual projects received a rank for each of the following criteria:
Environmental
Stewardship
Workforce
Development
Quantitative
Evaluation
Development
Score
Project
Location
Other
Preferences1
In addition, CPA included the following workforce development requirements for all projects:
• Prevailing wage requirements and targeted hire commitments for all projects, with a preference for Project Labor Agreements (PLAs)
(1) Other Preferences – CPA will prioritize projects that leverage other government funding, or that provide evidence of support or endorsements from local climate initiatives (2) Tax Credits – CPA will prioritize projects that offer a contract price reduction when the Counterparty receives an Investment Tax Credits or Production Tax Credits above a benchmark rate 11 Tax Credits2
Agenda Page 20 of 27
CPA Territory
DACs in CPA Territory
Agenda Page 21 of 27
12 Development Score
Projects will be ranked from high (good) to low (bad)
The development risk metric is a composite rank based on a number of factors impacting project risk:
o Site control
o Interconnection status
o Environmental screens
o Land use and permits
o Project financing
o Developer experience
Agenda Page 22 of 27
13 Environmental Stewardship
Projects are ranked high, medium, neutral, and low based on the following prioritization:
Demonstrates multiple benefits (provides additional societal, health, economic, water saving, or environmental benefits beyond the climate and GHG reduction benefits of renewable energy)
HIGH
Located in an area designated as a preferred renewable energy zone and received required land use entitlement permits
MEDIUM
LOW Project is located in a high conflict area
NEUTRAL Project does not demonstrate either preference or avoidance criteria Agenda Page 23 of 27
14 Workforce Development
Projects are ranked high, medium, and low based on the following prioritization:
The project will use targeted-hire, union labor, or multi-trade project labor agreements (including requirements for state-apprenticeship graduates) HIGH The project does not have a labor agreement, but can demonstrate prevailing wage, union labor, and targeted hire commitments MEDIUM The project does not demonstrate prevailing wage, union labor, and targeted hire commitments
LOW
Agenda Page 24 of 27
15 Benefits to Disadvantaged Communities
Projects are ranked high, medium, neutral, and low based on the following prioritization:
Located within a DAC and demonstrates DAC workforce and community development benefits HIGH
Project not located within a DAC but can demonstrate DAC benefits and has completed community outreach MEDIUM
LOW Project is inconsistent with community priorities
NEUTRAL Project does not demonstrate DAC benefits
Agenda Page 25 of 27
16 Project Location
HIGH In Los Angeles and Ventura counties
MEDIUM Other counties within California
Projects are ranked high or medium based on the following prioritization:
Agenda Page 26 of 27
17 Power Share Position History
18 CPA has made progress towards filling its program capacity through the 2020, 2021, and 2022 Power Share RFOs.
In 2024, CPUC D.24-05-065 increased CPA’s program capacity, necessitating significantly more procurement • Also in 2024, two PPAs were terminated, increasing CPA's capacity to be procured.
CPA’s Allocation
(MW)
2020 Power
Share RFO
Procurement
(MW)
2021 Power
Share RFO
Procurement
(MW)
2022 Power
Share RFO
Procurement
(MW)
CPA’s Remaining
Allocation (MW)
CPA’s Remaining
Allocation (%)
CPA’s Power Share Position after the 2022 Power Share RFO Closure
12.19 3.00 5.92 3.27 0 0%
CPA’s Current Power Share Position
18.285 0 (PPA
Terminated)
4.00 (1 PPA
Terminated) 3.27 11.015 60%
Since D.24.05-065 discontinued future solicitations for the CS-GT program, the 2025 Power Share RFO will seek capacity for the DAC-GT program only
Agenda Page 27 of 27