MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, April 17, 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 Gabriela Monzon, Clerk of the Board, conducted roll call.
Roll Call
Agoura Hills Deborah Klein Lopez Chair Remote
Alhambra Absent
Beverly Hills Julian Gold Immediate Past Chair Remote
Camarillo Susan Santangelo Committee Member Remote
Carson Reata Kulcsar
Alternate Committee
Member Remote
Hawthorne Alex Monteiro Committee Member Remote
Los Angeles County Lindsay Horvath Vice Chair Remote
Santa Paula Jenny Crosswhite Committee Member Remote
Sierra Madre Absent
Ventura County Vianey Lopez Vice Chair Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from March 20, 2025, Executive Committee Meeting Motion: Committee Member Monteiro, Hawthorne
Second: Committee Member Santangelo, Camarillo
Vote: The consent agenda was approved by a roll call vote, with an abstention from Vice Chair Horvath.
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
Ted Bardacke, Chief Executive Officer, invited the Committee to provide input on the draft agenda for the 2025 Board Retreat. Some of the topics to be discussed include long term product content targets, asset ownership, and the state’s cap-and-trade program.
3. Review Draft Agenda for the May 1, 2025, Board of Directors Meeting Mr. Bardacke described consent and regular items on the upcoming Board meeting agenda, including the approval of a Workforce Development MOU with the Tri-Counties Building & Construction Trades Council related to pre-apprenticeship programs in Ventura County. The regular agenda includes rate setting and budget discussions. Vice Chair Horvath expressed her enthusiasm for the Equitable Building Decarbonization Direct Install Program and urged Committee Members to promote it in their communities.
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 Karen Schmidt, Senior Director of Rates and Strategy, described the considerations for choosing a rate setting approach for the Fiscal Year 2025/2026 rates, such as product content targets, spread among rate products, competitiveness with SCE, budget reserve accumulation, and the impacts of SCE’s rate volatility. Ms. Schmidt presented bill comparison target options for the new fiscal year and reviewed competitive positions in relation to a lower versus higher reserve option. The lower reserve option would set comparison targets at 3% below SCE for Lean Power, 1% below for Clean Power, and 5% premium above SCE for 100% Green. The higher reserve option would set comparison targets at 2% below SCE for Lean Power, at parity for Clean Power, and a 6% premium for 100% Green. Residential Lean and Clean customers would see an average $4 to $6 decrease in their total monthly bills, and 100% Green would see a $0 to $2 decrease. Ms. Schmidt stated that CPA’s competitive position will improve on October 1, 2025, across all rate schedules with the reversal of SCE’s October 2024 generation rate drop. Another factor is the possibility of changes by the CPUC to parts of the PCIA calculation methodology. These changes, combined with market conditions, could increase PCIA rates and decrease SCE generation rates beginning in January 2026. Staff is monitoring the outcome of changes that would negatively impact CPA. New communities of La Cañada-Flintridge, Lynwood, and Port Hueneme, which begin CPA service in October, will maintain competitive rate comparisons throughout the new fiscal year, per the rate setting approach approved by the Board in December 2024. Staff requested a recommendation from the Executive Committee on a rate setting approach for the Board.
Vice Chair Horvath supported the higher reserve option as it would strengthen CPA’s financial position to withstand future challenges, such as PCIA fluctuation.
Committee Member Gold commented that the lower option would not generate enough reserve contribution and the overall cost increase to the customer is minimal. Committee Member Monteiro expressed support for the higher reserve option. In response to Committee Member Crosswhite’s request, Mr. Bardacke confirmed that under the higher reserve option, CPA is decreasing rates and increasing competitiveness for all products.
Committee Member Santangelo expressed support for the higher reserve option and asked if going with the lower reserve option would help CPA avoid an interim rate change in October, and staff clarified that an interim rate adjustment in October would not be needed in any scenario. Committee Member Kulcsar supported the higher reserve option as reserves would increase, praising the fact that rates would go down under both scenarios. Vice Chair Lopez agreed that this is an opportunity to plan ahead and increase reserves. Chair Klein Lopez agreed and stated that CPA can build reserves with very minimal impact on ratepayers.
Motion: Committee Member Monteiro, Hawthorne
Second: Committee Member Gold, Beverly Hills
Vote: Recommendation of the high reserve option was approved by a roll call vote.
5. Receive Presentation on FY 2025/26 Budget Priorities and Operating Expense Highlights
Mr. Bardacke provided a presentation on the item, starting with a timeline of the budget process culminating with Board adoption in June. Mr. Bardacke discussed operating expenses, stating that CPA manages $1.2 billion of annual energy costs, representing 94% of total costs. The Communications budget is expected to increase by 53%, or $2.1 million, to fund direct spending on program marketing and customer acquisition through website enhancements, market research, and CBO-led outreach efforts. Regarding staffing, the new budget reflects a 16% increase relative to last year. Most of the increase is due to the full-year impact of this year’s new hires and next year’s COLA. In summary, budgeted increases in operating costs are driven primarily by increases in customer programs, communications, and staffing. To mitigate rising electricity bills, CPA will focus on delivering programs that save customers money and reduce peak load. Overall, CPA continues to compare favorably with other CCAs on operating and staffing expenses.
Vice Chair Horvath congratulated staff for the increase in staff retention and suggested a concierge service by which a customer gets advice pertinent to their electricity needs. Mr. Bardacke noted that staff is working to identify customers with high electricity usage and would benefit from a customer program and market research helps refine targets in CPA’s large and diverse region. Committee Member Crosswhite urged CPA to work with partner agencies that connect with targeted populations, and asked about toolkits available through the member agency portals. Staff stated that member agency staff have access to the portal; some cities have already benefitted from the resources in that portal.
Staff clarified for Committee Member Gold that unspent monies are put back into the General Fund when a new budget is developed each year, with the exception of contracts or grants that keep funding locked in over more than one year. Also, member agencies sometimes take a longer time to spend money than originally planned for. David McNeil, Chief Financial Officer, commented that the practice is to start fresh every year because budget priorities may change over time.
Committee Member Gold urged consideration of holding unspent funds in reserve to support or expand successful programs. Committee Member Monteiro supported the additional spending on communication, especially outreach to low-income communities, as well as funding for the mobile educational unit. He asked about the reserves, and staff responded that the fiscal stabilization fund combined with the net position makes up the reserves.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Chair Klein Lopez adjourned the meeting at 2:56 p.m.