MINUTES
Legislative & Regulatory Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, March 26, 2025, 10:00 a.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:
Carson City Hall
City Manager’s Conference Room
701 East Carson Street
Carson, CA 90745
Clean Power Alliance Office
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
LA County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
West Hollywood City Hall
3rd Floor City Manager’s Conference Room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
CALL TO ORDER & ROLL CALL
Chair Hicks called the meeting to order at 10:00 a.m. and Annie Mendoza, Deputy Board Clerk, conducted roll call.
ROLL CALL
Carson Cedric Hicks Committee Chair Remote
Los Angeles
County Absent
Manhattan Beach Absent
Santa Monica Gleam Davis Committee Member Present
West Hollywood John Erickson 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, Legislative Committee Meeting Motion: Committee Member Erickson, West Hollywood
Second: Committee Member Davis, Santa Monica
Vote: The consent agenda was approved by a roll call vote.
REGULAR AGENDA
2. Provide Feedback on the Greenhouse Gas Reduction Fund and Affordability Options
Gina Goodhill, Sr. Director of Government Affairs, described the state’s cap-and-trade program and the California Climate Credit. Cap-and-trade creates incentives for utilities, industries, and other facilities to reduce their greenhouse gas (GHG) emissions and invest in clean energy. The Greenhouse Gas Reduction Fund program is up for reauthorization and modifications are being considered to decrease electricity costs. The CPUC identified several options to reallocate the Climate Credit to increase affordability for specific customer groups. CPA and other CCAs are proposing that on-bill credits for customers increase during the summer months when bills are higher.
Chair Hicks expressed support for transferring the credits to summer bills and wondered if there are sufficient funds available to implement short- and long-term affordability strategies. Customers may not take advantage of incentives or energy-efficiency rebates if power costs are high. Committee Member Davis asked whether the increased use of coal would impact the cost of renewable energy. Staff responded that electricity costs are likely to rise and CPA is advocating for a bill to examine the expansion of the regional energy market. The goal would be to stabilize the price increases and slow their pace. CPA’s current supply costs won’t be affected because of long-term contracts. The Committee expressed support for summer bill credits while also ensuring the industry works towards affordability measures related to transmission systems. Committee Member Davis commented that Southern California Edison is likely to be sued over the Eaton Fire, which may increase infrastructure costs that may be passed on to the ratepayer. Staff noted that legislation may be introduced to create public financing for transmission.
3. Receive a Presentation on the Power Charge Indifference Adjustment (PCIA) Reform Proceeding Update
CC Song, Senior Director of Regulatory Affairs, presented the PCIA fee and the Energy Resource Recovery Account (ERRA), as well as updates on the PCIA and ERRA reform proceeding, and a review of CPA staff engagement. The Commission’s near-term objective is to adjust the Resource Adequacy (RA) Market Price Benchmarks (MPB), which it believes overstates RA value. In the longer term, it seeks to broadly re-evaluate the PCIA in light of changing market conditions. Ms. Song described the two tracks the CPUC is following, Track 1 and Track 2, reflecting short- and long-term changes. CPA is adopting CalCCA’s position, which opposes incorporating long-term transactions in MPBs, as they should reflect recent market prices. CalCCA conditionally endorses exclusion of swap and sleeve transactions to the extent such transactions can be objectively and transparently identified. It also supports using monthly values for overall RA MPB to reflect seasonal changes in RA prices. Ms. Song presented CPA’s goals in ensuring an equitable outcome for all customers, bundled and unbundled. Staff will focus on any long-term alterations to the PCIA framework. A proposed decision is expected in May; Track 1 changes will affect rates starting in January 2026.
Chair Hicks asked for the breakdown of the number of bundled and unbundled customers. Staff stated that for SCE, approximately 70% are bundled and 30% are unbundled, including Direct Access. Statewide, the numbers are about half and half. Mr. Bardacke commented that Track 2 changes may happen two years from now, including the possibility of eliminating the PCIA altogether. CPA and other CCAs are urging a fair outcome for all customers.
COMMITTEE MEMBER COMMENTS
Chair Hicks inquired about SB 252 and AB 306. Regarding the former, which would create CEQA exemptions related to undergrounding utilities, staff is tracking the bill but has not yet taken a position. Staff is also tracking AB 306, which relates to state building codes, in particular reach codes, and their impacts on housing. CPA and the League of Cities are concerned about maintaining local control. AB 306 is moving out of the Assembly to the Senate for consideration. Committee Member Davis commented that reach codes are not an obstacle to building new housing.
ADJOURN
Chair Hicks adjourned the meeting at 10:58 a.m.