Energy Planning & Resources Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, April 23, 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 Districts
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
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.
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. Agenda Page 1
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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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 March 26, 2025, Energy Committee Meeting
2. Receive and File March 2025 Risk Management Team Report
REGULAR AGENDA
3. Oral Update from the Vice President of Power Supply
4. Receive Presentation on the 2025 Clean Energy and Reliability Request for Offers Launch and Provide Feedback to Staff
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING MAY 28, 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: Energy Planning & Resources Committee
Subject: Approve Minutes from the March 26, 2025, Energy Committee Meeting
Date: April 23, 2025
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
MINUTES
Energy Planning & Resources Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, March 26, 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
Arcadia City Hall
Council Chambers Conference Room
240 W. Huntington Drive
Arcadia, CA 91007
Carson City Hall
City Manager’s Conference Room
701 East Carson Street
Carson, CA 90745
L.A. County Sanitation District
Conference Room D
1955 Workman Mill Road
Whittier, CA 90601
CALL TO ORDER & ROLL CALL
Acting Chair Maloney called the meeting to order at 12:15 p.m. and Annie Mendoza, Deputy Board Clerk, conducted roll call.
ROLL CALL
Alhambra Jeff Maloney Committee Member Remote
Arcadia Absent
Carson Reata Kulcsar Committee Member Remote
Manhattan Beach David Lesser Committee Member Remote
Oxnard Kathleen Mallory Committee Member Remote
Sierra Madre Absent
South Pasadena Diana Mahmud Committee Member Remote
West Hollywood Chelsea Byers Committee Member Remote
All votes are unanimous, unless otherwise stated.
Energy Planning & Resource Committee Item 1
Agenda Page 4
GENERAL PUBLIC COMMENT
There was no 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 Motion: Committee Member Byers, West Hollywood
Second: Committee Member Mahmud, South Pasadena
Vote: The consent agenda was approved by a roll call vote, with a minor edit from Committee Member Mahmud on Item 1.
REGULAR AGENDA
3. Receive Presentation on the 2025 Power Share Request for Offers Launch John McNamara, Director of Structured Contracts, presented the 2025 Power Share RFO, set to launch in June. The program can accommodate up to 10,000 income-qualified customers in disadvantaged communities with 100% renewable energy at a 20% discount on their bills. Mr. McNamara described CPA’s Power Share portfolio and an update on the Power Share design and schedule. If CPA does not secure its program capacity from this RFO, it will need to initiate further RFOs. The remaining projects must have a COD no later than December 31, 2028, with a maximum project size of 11 MW to target projects that will fill, but not exceed, CPA’s remaining program capacity needs. Additionally, the contract term was increased from 15 years to 20 years to increase the time customers could receive bill savings, with a solicitation period of four months. Mr. McNamara described the scheduled RFO items. Staff anticipate submitting executed PPAs to the CPUC between April and May 2026.
Committee Member Mahmud requested additional information regarding the CPUC’s discontinuation of the CS-GT program. Staff explained that the CPUC has closed this program and introduced a new version called the Community Renewable Energy Program; CPA’s existing CS-GT customers and those who are served by projects already contracted for continue to receive services. Committee Member Mahmud also inquired whether CPA would support proposals linked to areas more likely to be affected by Public Safety Power Shutoff (PSPS) events to benefit those customers. Staff responded that the offer intake could gather information about PSPS frequency, but smaller solar systems would not decrease the likelihood of a PSPS occurrence overall. CPA is collaborating with SCE to create opportunities for community-scale resilience, and staff acknowledged Committee Member Mahmud’s suggestion to explore ways to mitigate wildfire impacts on customers.
In response to Committee Member Mahmud’s question regarding the two terminated PPAs in 2024, staff responded that agreements fall through for various reasons; for instance, in one project, the developer could not mount panels on top of the building. Staff clarified for Committee Member Kulcsar that if the CPUC required a new Advice Letter from CPA because of updated rules related to the program cost cap, the RFO process may be delayed for up to five months.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Acting Chair Maloney adjourned the meeting at 12:44 p.m.
Energy Planning & Resource Committee Item 1
Agenda Page 5
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 March 2025 Risk Management Team Report Date: April 23, 2025
March 2025 RMT REPORT
Key Actions
• Reviewed the counterparty credit exposure summary
• Reviewed December 2024 day-ahead load forecast performance • Reviewed February 2025 market performance
• Reviewed energy positions and approved 2025-2029 hedge proposal for monthly RFO
• Reviewed positions for Resource Adequacy (RA), RPS and Carbon-Free energy products (CF)
• Reviewed 2025 LT PPA Deliveries
• Reviewed a deal entry issue with an energy sale transaction • Reviewed the 2025-2027 slice of day RA position
• Reviewed 2025 RA Purchase and Sale strategy
• Reviewed Energy Risk Management Policy (ERMP) compliance for RA, REC, CF, and Energy
• Reviewed long-term energy contract amendments and terminations • Reviewed March 2025 CRR Allocations
• Reviewed the Negative REC Price strategy
Agenda Page 6
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.
Beginning 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 as part of the
2025 Integrated Resources Planning (IRP)
process.
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 7
Staff Report – Agenda Item 3
To: Energy Planning & Resources Committee
From: Lindsay Descagnia, Vice President, Power Supply
Subject: Oral Update from Vice President, Power Supply
Date: April 23, 2025
The VP will provide an oral report on CPA energy procurement activities.
Agenda Page 8
Staff Report – Agenda Item 4
To: Energy Planning & Resources Committee
From: Lindsay Descagnia, Vice President, Power Supply
Approved By: Ted Bardacke, Chief Executive Officer
Subject: 2025 Clean Energy & Reliability Request for Offers Launch Date: April 23, 2025
RECOMMENDATION
Receive presentation on the 2025 Clean Energy & Reliability RFO launch and provide feedback to staff.
ATTACHMENT
1. 2025 Clean Energy and Reliability RFO Launch Presentation Agenda Page 9
2025 Clean Energy and
Reliability Request for
Offers (RFO) Launch
April 23, 2025
Agenda Page 10
CPA intends to launch the 2025 Clean Energy and Reliability Request for Offers (RFO) on May 20th
Staff continues to recommend securing renewable energy and Resource Adequacy (RA) supply under long-term contracts to reduce exposure to short-term market volatility The RFO design for 2025 will be similar to 2024, but with modifications to:
Eligibility requirements to better reflect CPA's needs
Address market risks such as tariffs and the potential for changes to the Inflation Reduction Act tax credits
2 Executive Summary
The purpose of this meeting is to give an overview of the 2025 Clean Energy and Reliability RFO design for Energy Committee’s feedback
Agenda Page 11
Agenda
RFO Overview
Next Steps
Agenda Page 12
3 RFO Overview
Agenda Page 13
4 RFO Overview and Goals
The purpose of the 2025 Clean Energy and Reliability RFO is to continue to fill a larger portion of CPA’s portfolio needs for renewable energy and RA with long-term contracts
Similar to the 2024 RFO, the 2025 solicitation has a ‘fast track’ provision that will allow CPA to target and start negotiations for high-value projects that have Full Capacity Deliverability Status (FCDS)
CPA will continue to solicit for energy and RA from hybrid natural gas plants that would reduce GHG-emissions by adding battery energy storage or utilize blended fuels
Agenda Page 14
5 Product Types and Eligibility
6 Product
Types Description of Eligible Resources Term (Years) Size (MW) 2 Earliest Online Date Latest Online
Date
Renewable
Portfolio
Standard (RPS)
Generation Only
Solar, wind, geothermal, biomass, small hydro
(bundled with RA or energy-only) 10 to 201 15 to 250 January 1, 2029 December 31, 2032 RPS Generation +
Storage RPS generation paired with storage 10 to 20 15 to 250 January 1, 2029 December 31, 2032 Standalone
Storage
Standalone storage facilities with a minimum
duration of at least 4 hours 10 to 20 15 to 250 January 1, 2029 December 31, 2032 Resource
Adequacy (RA) -
Only
Offers from any technology for RA capacity (no
energy) 5 to 15 15 to 250 January 1, 2029 December 31, 2032 Blended or
Hybrid Tolls
Natural gas facilities that reduce emissions by
converting to a blended fuel source and/or adding
battery energy storage
2 to 10 10 MW Minimum January 1, 2029 December 31, 2032 1 Term limits for Energy Only offers will be 5 to 20 years 2 The minimum size eligibility requirement for projects located within Los Angeles or Ventura county (excluding product type Blended or Hybrid Tolls) will remain at 5 MWs This year, the proposed maximum project size is being reduced and the earliest and latest online dates have been shifted to reflect CPA's needs
Agenda Page 15
Evaluation Criteria
With the exception of natural gas tolls, projects will be ranked using CPA’s standard criteria (see Appendix for detailed descriptions):
Environmental
Stewardship
Workforce
Development
Quantitative
Evaluation
(Value)
Development
Risk
Project
Location
Benefits to
DACs
Agenda Page 16
7 Tariffs – Impacts to Contracting
8 CPA believes most Sellers will require contract language to address uncertainties regarding tariff-related cost changes
Tariff costs are realized by the Seller later in the development lifecycle, typically when equipment clears customs or after construction begins Cost increases could make a project financially infeasible for both the Seller and CPA
To draft effective contract language to address tariffs, numerous variables must be considered including how to set a benchmark to measure the impacts of tariffs, what components of the facility are included, what information is needed to validate the effects of tariffs on a project, when the protection against tariffs becomes effective or expires, etc.
Agenda Page 17
Tariffs – Potential Approaches to Mitigate Risk
9 Staff has discussed this issue with developers to gain insight on strategies and have identified some general approaches:
Tariff Rate Baseline: Seller must provide an assumed benchmark tariff percentage rate on primary equipment and a price adjustment ($/MWh or $/kW-mo) factor for each percentage point above or below the benchmark rate the project incurs (e.g. if tariff rate for equipment goes up or down by X, price goes up or down by Y)
Equipment Cost Baseline: Seller must provide cost estimates for primary equipment and/or the facility and a price adjustment ($/MWh or $kW-mo) factor for each X thousand dollars the cost incurred is above or below the benchmark rate due to tariffs
Change in Law: If tariffs exceed a certain threshold, the contract would allow parties to renegotiate a new contract price or terminate the contract if an agreement cannot be reached Price floors and price caps can also be applied to protect parties from extreme situations, if these amounts are breached, parties would come together to renegotiate the contract or terminate (e.g. price adjustments are limited to +/-10% of the base contract price)
An independent evaluator (IE) may also be required to validate the cost or tariff rate the Seller is claiming While staff anticipates incorporating tariff language in the pro forma agreements, given the rapidly evolving situation, CPA seeks to remain open to new ideas during negotiations with counterparties Agenda Page 18
Inflation Reduction Act Tax Credits
Like tariffs, Sellers are concerned that the existing tax credits could be reduced or eliminated
Contracts could become financially infeasible if tax credits are reduced or eliminated
In the past, CPA has included contract provisions that reduce contract prices if tax credits are higher than an established baseline. However, the current environment requires consideration of price increases if tax credits are lower Proposed Mitigation:
Contract identifies a benchmark rate of 30% Investment Tax Credits (ITC) or equivalent Production Tax Credit (PTC) rate
Sellers include in their proposal a price adjuster that would increase or decrease the contract price for each percentage ITC or PTC rate above or below the benchmark rate received by the project at Commercial Operation The contract could include a cap and floor on the price increase or decrease and if breached, parties would come back to renegotiate the contract or terminate Agenda Page 19
10 NEXT STEPS
Agenda Page 20
11 RFO Process
• Staff presents confidential valuation results to RFO Review Team • Review Team meets to develop shortlisting approach and recommended shortlist for Energy Committee consideration • Shortlisted bidders are invited to enter exclusivity
• Negotiations begin for bidders in exclusivity
• Intake all offers in partnership with Ascend Analytics • Perform quality control (QC) on all offers
• Perform valuation and enter into negotiations with fast track candidates • PPAs brought to full Board for approval on a rolling basis • Announce RFO to market
• Recommended shortlist presented to Energy Committee for approval • Confidential information is removed
Agenda Page 21
APPENDIX:
Qualitative
Scoring for
Renewable
Resources
Agenda Page 22
13 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 23
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 24
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 25
Benefits to Disadvantaged Communities
(excluding tolls)
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 26
Project Location (excluding tolls)
HIGH In Los Angeles and Ventura counties
Other counties within California
Projects located within a Federally-designated energy community or on tribal lands with demonstrated community support (including outside of California)
MEDIUM
Projects outside of California not located in a Federally-designated energy community or on tribal lands without demonstrated community support LOW
Projects are ranked high, medium, and low based on the following prioritization:
Agenda Page 27
APPENDIX:
Natural Gas Tolls
Evaluation Criteria
Agenda Page 28
19 Toll Evaluation Criteria
CPA could receive tolling offers from hybrid natural gas facilities that incorporate battery energy storage or convert to a blended fuel source, such as green hydrogen Only offers that can demonstrate a plan for transition to a cleaner alternative will be eligible for participation in this RFO
CPA will use the following criteria when evaluating these offers:
Workforce
Development
Quantitative
Evaluation
(Value)
Plan for
Transition to
Cleaner
Operations
Benefits to
DACs
20 GHG
Emissions
Agenda Page 29
GHG Emissions
21 CPA will forecast the expected generation and associated GHG emissions of each blended fuel or hybrid fuel/battery storage facility CPA may receive offers from facilities that are very efficient and are expected to run frequently and offers from facilities that are less efficient and expected to run infrequently
CPA will use forecasted data to analyze a facility’s total GHG output and the facility’s efficiency and determine the effects such facility will have on CPA's Product Content Label and GHG emissions profile
This will be a quantitative measure, not ranked High, Medium, Low Agenda Page 30
Disadvantaged Community Impacts
Blended fuel and hybrid natural gas/battery storage resources will have differing impacts on DACs than renewable resources. Impacts to DACs will be assessed in conjunction with scoring in the three qualitative evaluation criteria; 1) impacts of the agreement on a transition to cleaner operations, 2) workforce development, and 3) GHG emissions
HIGH Demonstrates DAC benefits, including transition to cleaner operations NEUTRAL Project does not demonstrate additional DAC benefits, or is not located in a DAC LOW Project is harmful or inconsistent with community priorities Agenda Page 31
22 Workforce Development
CPA will use its traditional workforce development criteria with a slight modification to address existing facilities
The project is a union site or will use targeted-hire, union labor, or multi-trade project labor agreements (including requirements for state-apprenticeship graduates) HIGH
The project is not a union site or 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 32
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