Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, April 17, 2025
1:30 p.m.
Visit CPA’s YouTube Channel to view a Live Stream of the Meeting www.youtube.com/@CPApublicmeetings
*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:
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
Alhambra City Hall
Conference Room
111 S. First St.
Alhambra, CA 91801
Beverly Hills City Hall
Council Office, 4th Floor
455 N. Rexford Drive
Beverly Hills, 90210
Camarillo City Hall
Council Office
601 Carmen Drive
Camarillo, CA 93010
Carson City Hall
City Manager’s Conference Room
701 East Carson Street
Carson, CA 90745
Hawthorne City Hall
Administrative Office
4455 W. 126th Street
Hawthorne, CA 90250
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Santa Paula City Hall
Councilmember Office
970 E. Ventura Street
Santa Paula, CA 93060
Sierra Madre City Hall
Council Chambers
232 W. Sierra Madre Blvd.
Sierra Madre, CA 91024
Ventura County Government Center
CEO Point Mugu Room
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
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 Agenda Page 1
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 AND ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from March 20, 2025, Executive Committee Meeting
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
3. Review Draft Agenda for the May 1, 2025, Board of Directors Meeting
4. Receive Presentation on FY 2025/26 Rates and Recommend a Rate Setting Approach to the Board for Consideration at its May 1, 2025, Meeting
5. Receive Presentation on FY 2025/26 Budget Priorities and Operating Expense Highlights
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT REGULAR MEETING ON MAY 15, 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
Staff Report – Agenda Item 1
To: Executive Committee
Subject: Approve Minutes from the March 20, 2025, Executive Committee Meeting
Date: April 17, 2025
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, March 20, 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
Sierra Madre City Hall
Council Chambers
232 W. Sierra Madre Blvd.
Sierra Madre, CA 91024
CALL TO ORDER & ROLL CALL
Chair Klein Lopez called the meeting to order at 1:30 p.m. and Annie Mendoza, Deputy 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
Executive Committee Item 1
Agenda Page 4
Camarillo Susan Santangelo Committee Member Remote
Carson Absent
Hawthorne Alex Monteiro Committee Member Remote
Los Angeles County Rita Kampalath Alternate Remote
Santa Paula Jenny Crosswhite Committee Member Remote
Sierra Madre Absent
Ventura County Absent
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from February 20, 2025, Executive Committee Meeting Motion: Committee Member Gold, Beverly Hills
Second: Committee Member Crosswhite, Santa Paula
Vote: The consent agenda was approved by a roll call vote
REGULAR AGENDA
1. Oral Update from the CEO on CPA Operations
Ted Bardacke, Chief Executive Officer, reported that the three new cities joining CPA in October 2025 have already chosen their Board representatives and energy options. Port Hueneme and Lynwood chose the Clean default option, and La Cañada Flintridge opted for 100% Green. Expansion of new member agencies has been paused for 2026, and a feasibility study for the City of Cudahy is underway for 2027 membership. Mr. Bardacke also shared that a draft agenda for the Board Retreat in June will be presented at the next Executive Committee meeting for review. The January financial report indicates that CPA is well ahead of the budget for the year. Staff clarified for Director Gold that SCE’s Public Safety Power Shutoffs (PSPS) events reduced electricity consumption, particularly in the Eaton Fire area.
3. Review Draft Agenda for the April 3, 2025, Board of Directors Meeting Mr. Bardacke presented the consent and regular agenda items.
Director Crosswhite asked how the public announcement regarding the stipend policy would be made. Mr. Bardacke indicated that the policy will be included in the budget approval media advisory in June that would highlight CPA’s strong fiscal health, expenditures, and competitive rates.
Director Crosswhite inquired about pressures from the federal government affecting CPA’s projects or rates, and staff responded that there would be no impact on this year’s rate setting or budget outlook. CPA’s renewable energy is fully procured for this year and next. If federal tax credits or tax-exempt government debt were to be reduced or eliminated, prices could increase in 2028 and 2029.
Executive Committee Item 1
Agenda Page 5
Staff clarified for Director Gold that rate classes cover their costs and explained the history of subset rates and why CPA may be able to lower those rates.
4. Receive Presentation on Customer Programs Fire Response and Provide Feedback
Joanne O’Neill, Director of Customer Programs, presented the proposed customer programs and fire response stages and described how existing programs could help customers whose homes are in high-fire-risk areas and those who experience frequent Public Safety Power Shutoff (PSPS) events. In Stage 1, the Energy Team will advise customers on wildfire resiliency strategies, such as home hardening, and staff will create new incentives for customers to add solar storage to their homes. CPA will collaborate with the U.S. Green Building Council to train architecture, engineering, and construction contractors in wildfire defense building techniques. The latter would require a Memorandum of Understanding and Workforce Development funds.
Stage 2 will focus on customers in the burn areas, including programs such as Zero Bill Homes, rebates for indoor air quality and building resiliency, support for rebuilding small businesses, and marketing support for the State’s Wildfire and Natural Disaster Resiliency Rebuild Program. Stage 3 will focus on community resiliency, which is still being evaluated. The proposal is to install neighborhood-based solar and battery backups instead of home-based systems. Ms. O’Neill stated that CPA’s fire response strategies will evolve as rebuilding efforts shape.
Board approval will be needed for the Stage 1 items affecting policy and budget.
In response to the need for Stage 3 projects, Director Crosswhite said she would give staff contact information for a staff member at the Southern California Association of Governments interested in connecting with CPA regarding microgrids. Director Kampalath expressed support for staff’s proposals and suggested that CPA align efforts with the County of Los Angeles related to rebuilding in Altadena. Chair Klein Lopez suggested the Santa Monica Mountains Resource Conservation District as a partner in evaluating homes for fire resistance. Staff clarified for Director Crosswhite that home hardening advice from the Energy Team would include changes to the structure and landscaping.
In response to Director Gold’s inquiry about the cost of the Resiliency Kicker for Sun Storage Rebates, staff indicated that they are still in the process of calculating those figures, as well as the eligibility parameters for the program. Additionally, staff informed Director Gold about the ongoing technical analysis of the Zero Bill Homes program. Director Gold expressed concern that the program might not be suitable for new home construction, particularly in cases where a customer is allowed to rebuild a house design that was destroyed by fire. Staff clarified that this approach has been successfully implemented in other locations.
COMMITTEE MEMBER COMMENTS
None
ADJOURN
Chair Klein Lopez adjourned the meeting at 3:03 p.m.
Executive Committee Item 1
Agenda Page 6
Staff Report – Agenda Item 2
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Oral Update from the CEO on CPA Operations
Date: April 17, 2025
The CEO will provide an oral update on CPA operations, including an overview of the draft 2025 Board Retreat Agenda.
ATTACHMENTS
1. Draft 2025 Board Retreat Agenda
Agenda Page 7
CLEAN POWER ALLIANCE BOARD RETREAT
June 13, 2025, 8:30am to 2:00pm
Draft Agenda
• Intro Remarks: The View from DC (Elected Federal Rep) • Ice-Breaker
• Integrated Resources Plan
o Question: Long Term Product Content Targets (how fast to rachet up Renewables/Carbon Free content of Lean and Clean)
o Context: 2030 Regulatory Transition to GHG Accounting (instead of renewables)
(Concurrent/Optional Ask the Expert Session: Customer Programs Basics) • Asset Ownership Follow Up
o Power Ready (Local Projects)
o Transmission (P3 Opportunity)
(Concurrent/Optional Ask the Expert Session: Customer Programs Basics) • Lunchtime Conversation (cap-and-trade reauthorization) Executive Committee Item 2
Agenda Page 8
Staff Report – Agenda Item 3
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Review Draft Agenda for the May 1, 2025, Board of Directors Meeting
Date: April 17, 2025
Staff will provide an overview of the proposed agenda items for the May 1, 2025, Board of Directors meeting for review and feedback from the Executive Committee. The draft Board agenda is attached to this staff report. Information on the main items for Board consideration is provided below.
CONSENT AGENDA
The following items are recommended for inclusion on the Consent Agenda of the May Board meeting.
Approve and Authorize Equitable Building Decarbonization Grant Funding MOU CPA is a member of a coalition led by Los Angeles County that was awarded funding from the California Energy Commission to implement the Equitable Building Decarbonization Direct Install Program (EBD) for the Southern California region. The EBD Program will accelerate residential building decarbonization for single-family homes, multifamily properties, manufactured housing, and public housing in disadvantaged communities through the free installation of electrification and energy efficiency upgrades.
CPA will be responsible for conducting tailored and culturally relevant marketing, education, and outreach (ME&O) activities to inform and engage CPA customers in disadvantaged communities about EBD and its benefits.
Agenda Page 9
Executive Committee Item 3
The Memorandum of Understanding (MOU) budgets $964,800 for CPA’s efforts through December 31, 2029. Pending final negotiations of the MOU, CPA staff will bring the agreement to the Board for approval at the May 2025 meeting.
Approve and Authorize Workforce Development MOU
On November 7, 2024 the Board approved the Workforce Phase 3 funding proposal for Multi-Craft Core Curriculum (MC3) pre-apprenticeship programs. This included approval for two new partners Flintridge Center and Women in Non-Traditional Employment Roles (WINTER), both located in Los Angeles County, and direction for staff to identify partners for similar training in Ventura County.
Staff is in the process of negotiating a 3-year MOU with Tri-Counties Building & Construction Trades Council which serves Ventura County. Should the negotiations be successful, the MOU will be submitted for consideration at the May 2025 Board meeting.
CalCCA Special Assessment for SCE ERRA Review and Forecast Applications The Power Charge Indifference Adjustment (PCIA) is set each year in SCE’s Energy Resource Recovery Account (ERRA) Review and Forecast applications. Beginning in 2023, CPA has been sharing the costs for engaging in SCE’s ERRA applications with the other four CCAs in SCE territory: Central Coast Community Energy, California Choice Energy Authority (CalChoice), Desert Community Energy, and Orange County Power Authority. To reduce the administrative burden on the external counsel and technical consultants, CalCCA has been asked to manage the invoices and fund disbursements on behalf of the CCAs, with close consultation of CPA staff.
This year’s proposed special assessment for both the 2024 ERRA Review and the 2026 ERRA Forecast applications is $420,000, with $250,000 of not-to-exceed (NTE) amount allocated to external counsel Keyes & Fox and $170,000 to technical consultant NewGen Strategies LLC. The costs are shared based on load-share proportions in SCE territory, and CPA’s portion of the special assessment is 64% of the total cost. Thus CPA’s total Agenda Page 10
Executive Committee Item 3
special assessment for the two ERRA applications is $268,800, with $160,000 allocated to Keyes & Fox, and $108,000 allocated to NewGen Strategies LLC.
In developing the special assessment, external consultants and counsel were asked to budget for the potential increase in the scope of work depending on the outcomes of Track 1 of the PCIA Reform Proceeding, issued by the CPUC in February 2025. Given that a decision is anticipated in June, there may be additional work that external counsel and consultants need to conduct to implement a short-term PCIA framework and ensure that SCE’s ERRA Forecast application materials accurately reflect the potenial changes directed by the CPUC.
REGULAR AGENDA
The following items are recommended for inclusion on the Regular Agenda of the May Board meeting.
Approve and Authorize RA-Only Agreement
Staff is in the process of negotiating an RA-Only contract from the 2023 Clean Energy and Reliability RFO. Should the negotiations be successful, the contract will be presented to the Board for consideration.
FY 2025-26 Rate Setting Approach
This item is the subject of a separate presentation to the Executive Committee.
FY 2025-26 Budget Approval
This item is the subject of a separate presentation to the Executive Committee.
ATTACHMENT
1. Draft May 1, 2026, Board of Directors Agenda
Agenda Page 11
Executive Committee Item 3
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, May 1, 2025
2:00 p.m.
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the April 3, 2025, Board of Directors Meeting
2. Approve and Authorize the Chief Executive Officer to Execute the Equitable Building Decarbonization Grant Funding MOU
3. Approve and Authorize the Chief Executive Officer to Execute Workforce Development MOU(s)
4. CalCCA Special Assessment for SCE ERRA Review and Forecast Applications
5. Receive and File Bill Positions Monthly Report
6. Receive and File Monthly Community Advisory Committee Report
REGULAR AGENDA
Action Items
7. Approve and Authorize the Chief Executive Officer to Execute an RA-Only Agreement from the 2023 Clean Energy and Reliability RFO
8. Receive Presentation on FY 2025/26 Rates and Select a Rate Setting Approach Information Item
9. Receive Presentation on FY 2025/26 Budget Priorities and Operating Expense Highlights
COMMITTEE CHAIR UPDATES
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT MEETING ON JUNE 5, 2025
Agenda Page 12
Staff Report – Agenda Item 4
To: Executive Committee
From: Karen Schmidt, Senior Director, Rates & Strategy
Approved By: Ted Bardacke, Chief Executive Officer
Matt Langer, Chief Operating Officer
Subject: Receive Presentation on FY 2025-26 Rates and Recommend a Rate Setting Approach to the Board at its May 1, 2025, Meeting Date: April 17, 2025
RECOMMENDATION
Receive a presentation on FY 2025-26 rates and recommend a rate-setting approach to the Board of Directors at its May 1, 2025, meeting as specified in the attached presentation.
ATTACHMENT
1. FY 2025-26 Rate Setting Approach Presentation
Agenda Page 13
FY 2025/26
Rate Setting Approach
April 17, 2024
Agenda Page 14
Summary
Staff requests that the Executive Committee recommend a FY2025/26 rate setting approach to the Board for approval at its May 1 meeting.
The rate setting approach will guide the FY 2025/26 rates to be adopted by the Board at its June 5 meeting
Staff recommend:
o Total bill comparison levels: Select total bill comparison levels for residential and small business rates to support competitiveness and financial goals (see options on slide 6) o Update subset rates: Update streetlighting, pumping and agriculture, and large commercial and industrial subset rates to reflect current Cost of Service (see slide 8), based on the selected Reserve Option
Rate and financial projections shown in this presentation are preliminary and subject to change
Agenda Page 15
November 2024 – May 2025 (Staff) – FY 2025/26 rate planning; cost of service analysis, energy cost projections, load forecasting, and budgeting (ongoing) November 7, 2024 (Board) – 2025 PCIA/SCE Rates: First Look December 5, 2024 (Board) – Approve FY 2025/26 New Communities Rate Setting Approach February 6, 2025 (Board) – Approve March 1, 2025 Interim Rate Adjustment April 3, 2025 (Board) – FY 2025/26 Rates Outlook
April 17, 2025 (Community Advisory Committee) – FY 2025/26 Rate Setting Approach April 17, 2025 (Executive Committee) – Recommend FY 2025/26 Rates Approach to Board May 1, 2025 (Board) – Request approval of FY 2025/26 Rate Setting Approach May 15, 2025 (Executive Committee) – Proposed FY 2025/26 Rates June 5, 2025 (Board) – Request approval of Proposed FY 2025/26 Rates 3 FY 2025/26 Rates Process
Agenda Page 16
Considerations for FY 2025/26 Rates
The options presented today are based on the 2025-2026 rate product content approved by the Board in April 2024. The product content targets maintain CPA’s overall preference for renewables, keep the 100% Green product intact, and allow for competitive rates The options were developed based on the following criteria:
1. Price spread between CPA’s three retail rate products. The differential between Lean, Clean and 100% Green Power has increased 1-2% as Resource Adequacy and brown power prices have fallen more rapidly than renewable energy prices
2. Competitiveness with SCE. Total bill comparisons for all rate products are expected to be as competitive or more competitive than current levels through the end of 2025
3. Reserve accumulation. CPA expects to approach or hit the Reserve Policy’s maximum reserve target of 50% in FY 2025/26 or FY 2026/27
4. SCE rate volatility. SCE generation rates will increase in October 2025, but three months later (January 2026) PCIA rates may increase and SCE generation rates may decrease, thus increasing customer bills and reversing near-term competitiveness gains
The rates submitted to the Board for approval in June will be based on the actual SCE June 1 rates and the rate approach the Board selects in May
Agenda Page 17
FY 25/26 Rate Options
• Reserve and total bill
comparison levels
• Subset rates
• Rate approach for new
communities
5 Agenda Page 18
FY 2025/26 total bill comparison options
The options presented provide competitiveness while enabling CPA to approach or meet its maximum reserve target.
6 Scenario
Residential/Small Business
Rate Comparison to SCE* Estimated Financial Metrics at Fiscal Year-end Lean Power Clean
Power
100% Green
Power
Contribution to
Net Position Reserve %
Days Liquidity
on Hand
(DLOH)
FY 24/25
Year-end (Projected) 0.0% 1.0% 6.1% $131-140M 44-45% 150-152 FY 25/26
Lower Reserve Option -3.0% -1.0% +5.0% $2-48M 45-50% 154-174 FY 25/26
Higher Reserve Option -2.0% 0% +6.0% $34-79M 47-53% 162-182 FY 2025/26 Rate Options
*Comparisons are total bill comparisons based on representative 2018 PCIA vintage rate schedules, average customer usage, and load profiles for each specified rate class, and projected SCE rates as of June 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.
The ranges for Financial Metrics reflect energy market and electric consumption volatility Agenda Page 19
Total Bill Comparison Ranges – Residential
Projected Residential Customer Total Bill Comparisons – FY 2025/26 Rate Options* Total bill comparisons will be competitive with SCE for residential and small/medium business customers under both options based on projected SCE rates Residential Lean and Clean Power customers would see an average $4-6 decrease in their total monthly bills, and 100% Green customers would see a $0-2 decrease *Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profiles for each rate class and projected SCE rates as of June 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.
Scenario
Average Monthly Bill Comparison to SCE
SCE base Lean Clean 100% Green Lean Clean 100% Green
March 2025 rates $189 $189 $191 $200 0.0% 1.0% 6.1%
Lower Reserve Option $189 $183 $187 $198 -3.0% -1.0% 5.0% Higher Reserve Option $189 $185 $189 $200 -2.0% 0.0% 6.0% Agenda Page 20
Large commercial and industrial, pumping and ag, and streetlighting rates are referred to internally as “subset rates.” Fewer than 9,900 or 1% of CPA customers are on subset rates Total bill comparisons for subset rates have improved over time, and under either FY 2025/26 rate scenario, most subset customers will have at least one rate option that is at a total bill discount to SCE
Subset Rates
Subset Rate Total Bill Comparisons – FY 25/26 Rate Options* *Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profiles for each specified rate class and projected SCE rates as of June 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.
Rate Schedule
March 2025 Lower Reserve Option Higher Reserve Option
Lean Clean 100% Green Lean Clean 100% Green Lean Clean 100% Green TOU-GS-3-D 3.1% 4.0% 8.5% -3.0% -0.7% 7.7% -2.0% 0.3% 8.7% TOU-8-D-SEC 3.0% 3.9% 8.5% -2.6% 0.5% 9.1% -1.5% 1.6% 10.2% TOU-PA-2-D 1.7% 2.6% 7.5% -3.9% -2.2% 6.9% -2.8% -1.2% 8.1% TOU-PA-3-D 2.4% 3.3% 8.3% -3.3% -1.9% 7.8% -2.1% -0.9% 9.0% LS-1 19.0% 20.1% 25.6% 12.7% 16.7% 25.9% 14.1% 17.9% 27.2% Agenda Page 21
CPA’s competitive position will improve on October 1 across all rate schedules with the reversal of SCE’s October 2024 generation rate drop
The CPUC is currently considering changes to parts of the PCIA calculation methodology These changes, combined with market movements, could increase PCIA rates and decrease SCE generation rates beginning in January 2026
While the magnitude of these changes is uncertain, the outcome could be bill increases and a conversion of October 2025 bill discounts into bill premiums relative to SCE for all CPA customers across all rate products beginning in January 2026, potentially triggering consideration of an interim rate adjustment.
CPA Competitiveness in 2025/2026
Residential Customer Total Bill Comparisons – FY 25/26 Rate Options* *Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profiles for each rate class and projected SCE rates as of June 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.
July 2025 October 2025 (Projected)
Lean Clean 100% Green Lean Clean 100% Green
Lower Reserve Option -3.0% -1.0% 5.0% -7.2% -5.3% +0.4% Higher Reserve Option -2.0% 0.0% 6.0% -6.2% -4.3% +1.4% Agenda Page 22
Rates for new communities
Communities beginning CPA service in October 2025 – La Cañada Flintridge, Lynwood, and Port Hueneme – will maintain competitive rate comparisons throughout FY 2025/26, per the rate setting approach approved by the Board in December 2024 o For residential and small/medium business customers, Lean Power will be at a 1% total bill discount to SCE, Clean Power will be at parity with SCE, and 100% Green Power will be at a 5% total bill premium
For subset customers, total bill comparisons will be at or below July 2024 levels throughout FY 2025/26 (see Appendix)
o As subset rates are getting more competitive, subset rates for the new communities may be adjusted based on cost of service
10 Agenda Page 23
Total Bill comparison levels: Select total bill comparison levels for residential and small business rates to reflect current COS and to support competitiveness and financial goals Update subset rates: Update streetlighting, pumping and ag, and large commercial and industrial subset rates to reflect current COS (as reflected in slide 7) and applying the selected Reserve Option Rate approach for new member communities: Set subset rates for member communities that begin service in October 2025 based on current COS, provided that total bill comparisons for each subset rate class do not exceed Board-approved July 1, 2024 levels (see Appendix slide 15) 11 Recap: FY 2025/26 Rate Approach Recommendations
FY 2025/26 Rate Options
*Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profiles for each rate class, and projected SCE rates as of June 1, 2024. Individual customer comparisons vary by specific rate schedule and customer usage.
Scenario
Residential/Small Business
Rate Comparison to SCE* Estimated Financial Metrics at Year-end FY 25/26 Lean Power Clean
Power
100% Green
Power
Contribution to
Net Position Reserve % Days Liquidity
on Hand
Lower Reserve Option -3.0% -1.0% +5.0% $2-48M 45-50% 154-174 Higher Reserve Option -2.0% 0% +6.0% $34-79M 47-53% 162-182 Agenda Page 24
Action Requested
Today staff request that the Executive Community recommend a FY 2025/26 rate setting approach for the Board’s consideration at its May meeting:
o Lower Reserve Option
o Higher Reserve Option
Final rate setting will take place at the June Board meeting along with adoption of the FY 2025/26 budget
o This rate setting will follow the rate approach adopted at the May Board meeting based on actual SCE June 2025 rates
Agenda Page 25
Questions
Agenda Page 26
Appendix
Agenda Page 27
Total Bill Comparison Ranges –
Small Business
Projected Small Business Customer Total Bill Comparisons – FY 25/26 Rate Scenarios Scenario
Average Monthly Bill Comparison to SCE
SCE base Lean Clean 100% Green Lean Clean 100% Green
March 2024 rates $261 $261 $264 $277 0.0% 1.0% 6.1%
Lower Reserve $261 $254 $259 $274 -3.0% -1.0% 5.0%
Higher Reserve $261 $256 $261 $277 -2.0% 0.0% 6.0%
*Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profiles for each specified rate class and projected SCE rates as of June 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.
Agenda Page 28
16 New Community Subset Rates
Rate Schedule Lean Clean 100% Green
TOU-GS-3-D 2.3% 3.4% 8.7%
TOU-8-D-SEC 2.3% 3.4% 8.8%
TOU-PA-2-D 0.3% 1.4% 6.9%
TOU-PA-3-D 1.1% 2.2% 7.9%
LS-1 19.2% 20.4% 26.7%
*Maximum Phase 7 FY 25/26 total bill comparisons approved by CPA Board Resolution 24-12-078. Subset rates include all TOU-GS-3, TOU-8, TOU-PA-2, TOU-PA-3, LS-1 and LS-2 rate schedules. Individual customer comparisons will vary by specific rate schedule and customer usage.
La Cañada Flintridge, Lynwood and Port Hueneme
Maximum FY 25/26 Total Bill Comparisons for Sample Subset Rates* Agenda Page 29
Staff Report – Agenda Item 5
To: Executive Committee
From: David McNeil, Chief Financial Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Receive Presentation on FY 2025-26 Budget Priorities and Operating Expense Highlights
Date: April 17, 2025
Staff will provide a presentation on the item.
ATTACHMENTS
1. FY 2025-26 Budget Priorities and Operating Expense Highlights Presentation Agenda Page 30
FY 2025/26 Budget Priorities and Operating
Expense Highlights
April 17, 2025
Agenda Page 31
FY 2025/26 Budget Process
January – April 2025 (Staff) – FY 2025/26 Goal Setting, Departmental Budgeting, Rate Design Planning, Energy Cost Projections & Consolidated Budget Planning (ongoing) April 17, 2025 (Executive Committee) – Budget Priorities April 23, 2025 (Finance Committee) – Budget Priorities & Draft FY 2025/26 Budget May 1, 2025 (Board) – Budget Priorities
May 15, 2025 (Community Advisory Committee) – Draft FY 2025/26 Budget May 15, 2025 (Executive Committee) – Draft FY 2025/26 Budget May 28, 2025 (Finance Committee) – Draft FY 2025/26 Budget June 5, 2025 (Board) – Proposed FY 2025/26 Budget
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Clean Energy Portfolio Delivery and
Competitiveness
1. Approach or reach maximum reserve
requirement and position CPA for long-term competitiveness
2. Meet renewable procurement and GHG
emissions targets and develop long-term
rate product strategy
Customer Benefits and Impact
3. Deliver bill savings, environmental, and
resiliency benefits via customer,
community and member agency programs
4. Increase customer engagement while
maintaining customer participation
rates
3 FY 2025/26 Organizational Priorities
Organizational Effectiveness
5. Continuously improve internal systems and
processes
6. Support an engaged, effective Board
7. Invest in and support development of high-performing and diverse staff
8. Track and communicate organizational-wide
performance metrics
9. Update processes to minimize
cybersecurity and legal risks
Industry Leadership
10. Comply with or surpass all regulatory and
legal obligations
11. Provide regional and statewide leadership
on addressing issues of reliability,
resiliency, and affordability
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4 CPA manages ~$1.2 billion of annual energy costs representing 94% of total costs. In addition, CPA contracts for and operationalizes long-term renewable and storage projects involving billions of dollars of financial commitments
Short-term energy, resource adequacy and renewable energy costs have fallen, and all eyes are on a possible SCE generation rate reduction and PCIA increase effective January 1, 2026.
Federal trade, tariff, and tax policies may increase future renewable energy project costs Electricity affordability has emerged as a key issue in California at the same time that transmission constraints, wildfires, and increased electricity demand are placing pressure on the grid
CPA can help mitigate rising electricity bills by:
Developing and delivering customer programs that save customers money and reduce peak load Continuing to invest internally in systems and people that manage risk Seeking out innovative business and policy measures that can affordably and resiliently fulfill CPA’s decarbonization mission
Operating Expense Context
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FY 2025/26 Operating Expenses Overview
5 Operating expenses represent 6% of total costs. About one-fifth of operating expenses are fixed by regulatory, contractual, or policy obligations Over the past 12 months, CPA has added staff across the organization, continuing to reduce staff turnover and resulting consultant spend while improving performance and organizational capacity. Continuing to reap those benefits is dependent on continuing to invest in staff retention and talent acquisition
Operating expenses are projected to increase $9.29 million (14%) relative to FY 2024/25, driven mostly by increased spending on Staffing (+$3.9 million), Communications (+$2.1 million), Customer Programs (+$1.2 million). All other operating expense line items collectively increase by $2.1 million (8%) Expanding customer programs, supported by effective marketing and communications, is a key organizational priority and can help reduce individual customer bills as well as overall energy costs.
CPA has limited ability to impact rates in the short term through adjustments to operating expenses but can increase impact and reduce risk through these investments Agenda Page 35
Notable Budget
Increase Areas
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Proposed $1.2 million increase in Customer Programs budget to fund high-impact programs.
Primary drivers for the increased budget request include:
Budget for some programs decreases relative to FY2024/25 due to lower-than-expected administrative costs (Solar and Battery Access Program), better alignment between program budget and timing of spend (Energized Communities), and timing shifts (Instant AC Savings) Overall long-term spend commitments on Energized Communities and Low-Income AC have not changed but implementation time frames have been extended due to expected velocity of customer and member agency signups
Investing in Existing Programs
Power Share (+$1.38M)
Building off initial success of
~1,000 customer sign-ups in
first 6 weeks of outreach with
85% of charging occurring off-peak
Target enrollment of 9,900
electric vehicles by end of FY25-
26 Increase driven by additional
funding capacity from CPUC
combined with completion of
Community Solar projects
Expanding enrollment to 10,450
(from 6,500)
EV SmartCharge (+$1.1M) Energy Advisor (+$332k)
7 Continue to promote services
and newly launched online tools
through expanded marketing
and CBO outreach
Expanding service to include
advice on fire resiliency
measures
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8 Launch Year Funding Source Staffing Customer Programs Communications Mailers Data Manager Total % of Total Reimbursable costs
/ 3rd party Funding
Customer Program
Expenses, Net
100% Reimbursable
Power Share/Community Solar (CPUC) 2021 CPUC 403,000 3,865,000 41,000 14,800 4,323,800 24% 4,323,800 - Leverage State Resources
Electric Vehicle Charging (CALeVIP LA & Ventura) 2021 216,000 216,000 1% - 216,000 Strategic with long-term ROI or community benefits potential Power Response/Demand Response 2019 958,000 510,000 113,000 1,581,000 9% - 1,581,000 Power Ready/Backup Power 2021 651,000 10,000 661,000 4% - 661,000 Reach Code Program 2023 525,000 525,000 3% - 525,000
Energy Advisor 2024 624,000 410,000 106,000 1,140,000 6% - 1,140,000 Energized Communities 2024 3,002,000 25,000 3,027,000 17% - 3,027,000 Sun Storage Rebate 2024 1,700,000 260,000 1,960,000 11% - 1,960,000 Instant AC Savings 2024 611,000 377,000 40,000 1,028,000 6% - 1,028,000 Solar and Battery Access 2025 47,000 235,000 143,000 425,000 2% - 425,000 EV SmartCharge 2025 1,500,000 670,000 117,000 2,287,000 13% - 2,287,000 Hard to Reach EV Technical Assistance (new) New 135,000 50,000 185,000 1% - 185,000 Wildfire Recovery (new) New 200,000 165,000 365,000 2% 365,000 Low Income Efficient Cooling - Landlord (new) New 390,000 390,000 2% 390,000 *Total 403,000 14,424,000 2,753,000 533,800 - 18,113,800 100% 4,323,800 13,790,000 *Numbers may not tie out due to rounding
Cost Center Budget
Customer Programs Budget Detail
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Communications Driven by Program Marketing
Communications budget expected to increase by 53%, or $2.1 million. 48% of this growth represents direct spending on program marketing. 31% of this growth supports customer acquisition through website enhancements, market research and CBO-led outreach efforts
Proposed spending on core branding efforts, which have produced results this FY in terms of CPA brand recognition and awareness, is relatively flat Turnkey Mobile Education Unit for ~50 unique events per year projected to cost $640k annually spread over two fiscal years – see next slide for potential examples 9 Agenda Page 39
Mobile Education Unit Examples
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Communications Budget – YOY Comparison
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Staffing - Context
12 FY 2024/25 budgeted headcount of 90 (including budget for 4 unallocated positions). Current headcount = 86 (with 4 open positions) (see slide 17 for current org chart) Turnover rates have leveled off following high turnover rate experienced during COVID:
Jan 2021 to March 2022 – Hired 35/Net gain of 14
April 2022 to March 2023 – Hired 20/Net gain of 14
April 2023 to March 2024 - Hired 18/Net gain of 15
April 2024 to March 2025 – Hired 14/Net gain of 11
Initial FY 2025/26 budget reflects a 16% increase in staffing costs relative to FY 2024/25. 64% of the increase is due to the full-year impact of this year’s new hires, next year’s COLA, and other retention efforts. The growth rate in the staffing budget continues to decelerate.
Budgeting 6 new positions in FY 2025/26 (down from 7 in FY 2024/25). New positions address growth in customer programs, communications, energy contracting, data and systems, rates & strategy, risk management and data analytics. (see slide 16 for details) The initial FY 2025/26 staffing budget also includes 4 unallocated positions for potential mid-year and/or “rotational” hires Agenda Page 42
Initial Staffing Budget Projection
13 Initial budget projects staffing costs to increase by 16%, increasing from 1.5% of total revenue in FY 2024/25 to ~2% of revenue in FY 2025/26 (depending on rate approach selected by the Board).
Staffing Budget Breakdown Staffing Budget Growth Rates Over Time CPA Budget
Budget Budget Budget Budget
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
41% 44% 20% 16%
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Operating expenses are 6% of total costs
Budgeted increases in operating costs are driven primarily by increases in customer programs, communications, and staffing
Staffing cost increases are decelerating, but consolidating the benefits of staffing progress is dependent on continuing to invest in staff retention and talent acquisition CPA can help mitigate rising electricity bills by developing and delivering customer programs that save customers money and reduce peak load CPA continues to compare favorably with other CCAs on operating and staffing expenses (see slide 16)
14 Summary
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Questions?
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Select CCA Metrics and Comparisons
CPA’s metrics for operating expenses and staffing costs compare favorably with industry averages 16 Fiscal Year Budget ($000)
CPA FY2025/26
(Draft) CCA Avg MCE FY2024/25 Sonoma FY2024/25 3CE FY2024/25 Ava FY2024/25 Total Revenue 1,372,000 671,000 788,000 276,000 746,000 873,000 Total Energy Cost 1,228,000 578,000 689,000 187,000 665,000 772,000 Net Energy Revenue 144,000 92,000 99,000 89,000 81,000 101,000 Staffing 28,000 18,000 23,000 11,000 13,000 27,000
Other Operating Expenses 49,000 24,000 23,000 20,000 35,000 19,000 Total Operating Expenses 77,000 43,000 46,000 32,000 48,000 45,000 Net Income 67,000 50,000 54,000 57,000 33,000 56,000
Staffing (% of…)
Revenue 2.0% 2.7% 2.9% 4.0% 1.7% 3.1%
Cost of Energy 2.3% 3.1% 3.3% 5.9% 2.0% 3.5%
Net Energy Revenue 19% 20% 23% 12% 16% 27%
Total Operating Expenses 36% 42% 50% 34% 27% 60%
Net Income 42% 36% 43% 19% 39% 48%
Other Operating Expense (% of…)
Revenue 3.6% 3.6% 2.9% 7.2% 4.7% 2.2%
Cost of Energy 4.0% 4.2% 3.3% 10.7% 5.3% 2.5%
Net Energy Revenue 34% 26% 23% 22% 43% 19%
Net Income 73% 48% 43% 35% 106% 34%
Total Operating Expenses (% of…)
Revenue 5.6% 6.4% 5.8% 11.6% 6.4% 5.2%
Cost of Energy 6.3% 7.4% 6.7% 17.1% 7.2% 5.8%
Net Energy Revenue 53% 47% 46% 36% 59% 45%
Net Income 115% 86% 85% 56% 145% 80%
Gross Margin 10% 14% 13% 32% 11% 12%
Net Margin 5% 7% 7% 21% 4% 6%
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Current Staff Headcount + Proposed Positions
Department Current Positions Proposed New Positions Total Executive (including Board Office) 7 0 7
Legal 3 0 3
Coms & Marketing 11 1 12
Customer Care 4 0 4
Customer Programs 9 1 10
Data & Systems 7 1 8
Finance (including Accounting, FP&A, Load Forecasting, Risk Management, Strategic Initiatives, Treasury)
13 (two open)
2 15
Government Affairs 5 0 5
Operations (including Non-Energy Procurement, Strategic Accounts) 3 0 3 People & Culture/Admin 5
(one open)
0 5
Power Supply 16
(one open)
0 16
Rates & Strategy 3 1 4
Regulatory Affairs 4 0 4
Unallocated (mid-year hires based on need) - Up to 4 TBD Total 90 6-10 96-100
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