Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, May 1, 2025
2:00 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
Diana Mahmud Board Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting at the following locations:
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91301
Wyndham Midtown
205 East 45th Street
New York, NY 10017
Whittier City Hall
Admin Conference Room
13230 Penn Street
Whittier, CA 90602
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
JW Marriot Desert Springs at SCAG
Conference
Director 1 Conference Room
74-855 Country Club Drive
Palm Desert, CA 92260
Ventura County Government Center
Point Mugu Conference Room, 4th Floor
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 Board 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 Board 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 Agenda Page 1
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 PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the April 3, 2025, Board of Directors Meeting
2. Approve CPA’s Portion of the CalCCA Special Assessment for Southern California Edison’s 2024 Energy Resource Recovery Account (ERRA) Review Application and the 2026 ERRA Forecast Application for a not-to-exceed Amount of $268,000, which Includes $160,000 for Keyes & Fox, and $108,000 for NewGen Strategies, LLC from April 1, 2025, to June 30, 2026
3. Approve Resolution No. 25-05-083 to Authorize a Reduction in the Amount of the Credit Facility (The “Commitment”) Under CPA’s Revolving Credit Agreement with JPM Chase Bank, N.A. by $40 Million to $120 Million, and Delegate Authority to CPA’s Authorized Representatives to Further Reduce the Commitment From Time to Time by No More Than an Additional $40 Million Thus Maintaining a Minimum Commitment of No Less Than $80 Million
4. Receive and File Bill Positions May 2025 Monthly Report
5. Receive and File Monthly Community Advisory Committee Report
REGULAR AGENDA
Action Item
6. Approve a Rate Setting Approach for FY 2025/26:
a. Select an Option Based on CPA’s Projected Cost of Service (COS) Establishing a Reserve Percentage Target and Resulting Total Bill Agenda Page 2
Comparison Levels for Residential and Small Business Rates Using Southern California Edison’s (SCE) June 1, 2025 Rates:
i. Option 1 – Medium Reserve Option with a Reserve Percentage Target of 45-50%: Target 100% Green Power Rates to Provide a 5% Premium, Clean Power at a 1% Discount, and Lean Power at a 3% Discount;
ii. Option 2 (Recommended by Executive Committee) – Strengthened Reserve Option with a Reserve Percentage Target of 47-53%:
Target 100% Green Power Rates to Provide a 6% Premium, Clean Power at a 0% Discount, and Lean Power at a 2% Discount; b. Update Rates for Large Commercial, Industrial, Pumping and Agriculture, and Streetlighting Rate Classes to Reflect CPA’s Projected COS and Based on the Selected Reserve Option;
c. Set Subset Rates for Customers in the Cities of La Cañada Flintridge, Lynwood, and Port Hueneme to Reflect CPA’s Projected COS And Based on the Selected Reserve Option, Provided that Total Bill Comparisons for Each Rate Class Do Not Exceed the Board-Approved July 2024 Levels Information Item
7. Receive Presentation on FY 2025/26 Budget Priorities and Operating Expense Highlights
COMMITTEE CHAIR UPDATES
Director Cedric Hicks, Chair, Legislative & Regulatory Committee Director Susan Santangelo, Chair, Finance Committee
Director Robert Parkhurst, Chair, Energy Planning & Resources Committee
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT REGULAR MEETING ON JUNE 5, 2025
Public Records: Public records that relate to any item on the open session agenda for a regular Board 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 Board. 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 3
Commonly Used Acronyms
BESS Battery Energy Storage System
CAC Community Advisory Committee
CAISO California Independent System Operator
CALCCA California Community Choice Association
CalEVIP California Electric Vehicle Incentive Program
CARB California Air Resources Board
CARE California Alternate Rates for Energy (Low Income Discount Rate) CCA Community Choice Aggregation
CEC California Energy Commission
CPUC California Public Utilities Commission
DA Direct Access (Private Retail Energy Supplier)
DAC Disadvantaged Community (As Defined by Calenviroscreen 3.0) DER Distributed Energy Resources
DR Demand Response
ERMP Energy Risk Management Policy
ERRA Energy Resource Recovery Account (SCE Generation Rate Setting)
ESA Energy Storage Agreement
EVSE Electric Vehicle Supply Equipment (EV Charger)
FERA Family Electric Rate Assistance (Low Income Discount Rate) GHG Greenhouse Gas
IOU Investor Owned Utility
IRP Integrated Resource Plan
JPA Joint Powers Authority
Agenda Page 4
Commonly Used Acronyms
Kwh Kilowatt-Hour (A Measure of Energy Used in A One-Hour Period) Kw Kilowatt = 1,000 Watts (Watt = A Measure of Instantaneous Power) LSE Load Serving Entity
MB Medical Baseline (Discount Rate for Medical Equipment Needs) MW Megawatt = 1,000 Kilowatts
Mwh Megawatt-Hour = 1,000 Kilowatt-Hours
NEM Net Energy Metering (Usually for Customers with Solar) OAT Other Applicable Tariffs
PCIA Power Charge Indifference Adjustment (Can Be Called “Exit Fee”) PCC1 Renewable Energy Generated Inside California
PCC2 Renewable Energy Generated Outside California
PCC3 A REC from A Renewable Resource, Delivered Without Energy PCL Power Content Label
POU Publicly Owned or Municipal Utility
PPA Power Purchase Agreement
PSPS Public Safety Power Shutoff
PV Photovoltaic (Solar) Panels
RA Resource Adequacy
REC Renewable Energy Credit
RPS Renewables Portfolio Standard
T&D Transmission and Distribution
TOU Time Of Use (Used to Refer to Rates that Differ by Time Of Day) WECC Western Electricity Coordinating Council
Agenda Page 5
Staff Report – Agenda Item 1
To: Board of Directors
Subject: Approve Minutes from the April 3, 2025, Board of Directors Meeting Date: May 1, 2025
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 6
Board of Directors Item 1
MINUTES
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, April 3, 2025, 2:00 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Board members participated from the following locations:
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91301
Clean Power Alliance
Diana Mahmud Board Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Whittier City Hall
Admin Conference Room
13230 Penn Street
Whittier, CA 90602
Ventura County Government Center
Point Mugu Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
South Bay Cities Council of Governments
Conference Room
2355 Crenshaw Blvd., Suite 125
Torrance, CA 90501
CALL TO ORDER & ROLL CALL
Chair Klein Lopez called the meeting to order at 2:00 p.m. and Annie Mendoza, Deputy Clerk of the Board, conducted roll call.
PLEDGE OF ALLEGIANCE
Director Newman led the Pledge of Allegiance
Roll Call
1 Agoura Hills Deborah Klein Lopez Chair Present
2 Alhambra Jeff Maloney Director Present
3 Arcadia Absent
4 Beverly Hills Julian Gold Alternate Present
5 Calabasas Ed Albrecht Director Remote
6 Camarillo Susan Santangelo Director Remote
7 Carson Reata Kulcsar Alternate Present
8 Claremont Corey Calaycay Director Present
9 Culver City Yasmine-Imani McMorrin Director Present
Agenda Page 7
Board of Directors Item 1
10 Downey Horacio Ortiz Director Remote
11 Hawaiian Gardens Absent
12 Hawthorne Alex Monteiro Director Present
13 Hermosa Beach Raymond Jackson Director Remote
14 Los Angeles County Lindsay Horvath Vice Chair Present 15 Lynwood Juan Muñoz-Guervara Director Present
16 Malibu Absent
17 Manhattan Beach David Lesser Director Remote
18 Monrovia Edward Belden Director Present
19 Moorpark Chris Barrett Director Remote
20 Ojai Michelle Ellison Alternate Remote
21 Oxnard Bert Perello Director Remote
22 Paramount Michelle Muller Alternate Remote
23 Port Hueneme Absent
24 Redondo Beach Absent
25 Rolling Hills Estates Debby Stegura Director Remote
26 Santa Monica Absent
27 Santa Paula Jenny Crosswhite Director Present
28 Sierra Madre Robert Parkhurst Director Present
29 Simi Valley Rocky Rhodes Director Present
30 South Pasadena Omari Ferguson Director Present
31 Temple City Ed Chen Director Present
32 Thousand Oaks David Newman Director Present
33 City of Ventura Absent
34 Ventura County Vianey Lopez Vice Chair Present
35 West Hollywood Chelsea Byers Alternate Present
36 Westlake Village Kristopher Galvez Alternate Remote
37 Whittier Mary Ann Pacheco Director Remote
All votes are unanimous unless otherwise stated.
Agenda Page 8
Board of Directors Item 1
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the March 6, 2025, Board of Directors Meeting
2. Approve and Authorize the Chief Executive Officer to Execute Task Order No. 07 with Ascend Analytics for 2025 Clean Energy and Reliability Request for Offer Support Services for a Not-to-Exceed Amount of $220,000
3. Receive and File Monthly Bill Positions Report
4. Receive and File Monthly Community Advisory Committee Report Director Newman commented on Item No. 3, the Monthly Bill Positions Report, that the California League of Cities’ Environmental Quality Committee voted to oppose AB 306.
Motion: Director Parkhurst, Sierra Madre
Second: Director Byers, West Hollywood
Vote: The consent agenda was approved by roll call vote.
REGULAR AGENDA
5. Approve Stage 1 of Fire Response Initiatives, Consisting of:
1. Expansion of Energy Team Services to Include Advice on Fire Resiliency Measures
2. Creation of a Resiliency Adder of $1,250 for the Sun Storage Rebate Program for Customers in Communities with “High” or “Very High” Fire Hazard Severity Zones
3. Funding for the U.S. Green Building Council California to Provide for Sustainable Wildfire Recovery Resources and Training Programs for Building Contractors and Construction Workers in the Amount of $50,000 Using Community Benefit Funds from Executed Power Purchase Agreements Joanne O'Neill, Director of Customer Programs, presented CPA’s Fire Response program stages and initiatives. CPA’s initial focus will be customers in high fire risk areas or those that experience frequent Public Safety Power Shutoff (PSPS) events. Stage 2 emphasizes new program offerings for customers in the burn areas, while Stage 3 will concentrate on long-term community resiliency. Stage 1 includes adding fire resiliency to the Energy Team’s advising function, an added incentive for the Sun Storage Program, and funding training for construction contractors through the U.S. Green Building Council California. Potential Stage 2 programs include Zero Bill Homes, resiliency for renters and homeowners, support for small businesses, and marketing support for the state’s Wildfire and Natural Disaster Resilience Rebuild Program. Stage 3 programs are under development.
Vice Chair Horvath praised CPA for participating in rebuilding efforts and noted that Los Angeles County has partnered with UCLA to form a Blue Ribbon Commission on Climate Action and Fire Safe Recovery, which Ted Bardacke, CPA’s CEO has joined. Vice Chair Horvath encouraged staff to create CPA toolkits so member agencies can help promote these programs. In response to Director Parkhurst’s question about rebuilding and recovery information, staff noted that they are creating a catalogue of resources for customers. Director Parkhurst encouraged collaboration with the Fire Safe Councils; voiced concern that the State might eliminate the requirement to include solar in rebuilding efforts, so CPA should promote it whenever possible. Director Newman echoed suggestions to
Agenda Page 9
Board of Directors Item 1
collaborate with community groups and public agencies that may serve as good allies in these efforts. Director Crosswhite shared that her colleagues at the Southern California Association of Governments want to meet with CPA staff regarding microgrids. Mr. Bardacke responded that microgrids require collaboration with SCE, who has agreed to share lists of public agency buildings that could benefit from CPA’s programs.
Director Gold suggested that CPA publicize its fire response programs and encouraged CPA to find ways to participate in redeveloping public safety infrastructure. Director Ferguson remarked that insurance companies should acknowledge fire mitigation efforts that homeowners make, and that utilities and government agencies involved in rebuilding should also explore undergrounding.
Mr. Bardacke responded that the Blue Ribbon Commission is discussing insurability and how it affects customers as well as looking at how to prepare customers for future undergrounding efforts. In response to Director Lesser’s question about fiscal implications of battery rebates, Ms. O’Neill responded that CPA has budgeted for 1,000 customers, though only 200 applications have been received. Staff clarified for Director Perello that the Sun Storage program is available for existing homes and those under construction and that eligibility for the new resiliency adder includes all communities with high or very high fire threat zones even if the customer in that community resides outside that threat zone.
Motion: Director Ferguson, South Pasadena
Second: Director Parkhurst, Sierra Madre
Vote: Item 5 was approved by a roll call vote.
6. Approve Resolution 25-04-082 to Amend the CPA Reimbursements for Board of Directors Policy to Offer Stipends to the Board of Directors and Community Advisory Committee Members for Meeting Attendance Beginning July 1, 2025.
Ted Bardacke, Chief Executive Officer, discussed the proposed stipends policy.
The Board had a lengthy discussion about the policy at its March meeting. Later in March, the Executive Committee reviewed the proposed amendments and directed staff to proceed with the item for the Board's consideration.
Director Crosswhite asked for clarification regarding eligibility. Staff noted that a Director must be present for all the action items to be eligible for compensation.
To provide clarity, Nancy Whang, General Counsel, suggested an amendment to the policy allowing for a Director to register with the Clerk of the Board the Director's vote if they were not present during roll call. Regarding Director Ortiz’s comment about the timing, Ms. Whang explained a Director would have to publicly register their vote before the meeting adjourns; notifying the Clerk after the meeting would not comply with the Brown Act.
Staff clarified for Director Ferguson that action items are at the top of the agenda and that Board meetings typically do not go longer than two hours. Director Perello expressed concern about abuse of the policy in cases where Directors may attempt to register votes at the beginning of the meeting; Ms. Whang clarified that a vote could not be registered until a motion and a second is placed on the record and a roll call vote occurs. Chair Klein Lopez noted that the Board may direct staff to bring revisions to the stipend policy if adjustments are needed. Director Muñoz-Guevara noted that the Board may also delegate to the Chair or appropriate officer
Agenda Page 10
Board of Directors Item 1
to confirm attendance for each meeting. Director Pacheco stated that members of the Board are all people of goodwill and the policy is meant to acknowledge their valuable service to the organization. Ms. Whang clarified for Director Newman that the Board meetings follow Robert's Rules of Order but the Rules of Order are not codified in CPA’s bylaws.
Ms. Mendoza read the amendment language into the record: Under section II(B)(1), the definition of action item is revised to include “provided that the vote is registered at any point prior to the adjournment of that meeting” to the end of the second sentence of that paragraph.
Motion: Director Monteiro, Hawthorne
Second: Director Muñoz-Guevara, Lynwood
Vote: Item 6 was approved as amended by a roll call vote, with No votes from Directors Calaycay and Rhodes, and abstentions from Vice Chair Horvath and Director Belden.
7. Receive Presentation on FY 2025-26 Rates Outlook
Karen Schmidt, Senior Director of Rates and Strategy, explained that CPA expects to maintain competitive rates and continue building reserves in the next fiscal year.
Ms. Schmidt presented information on the price spread among CPA’s three rate products, competitiveness with SCE, reserves accumulation, SCE’s rate volatility, as well as the budget schedule. Communities beginning CPA service in October 2025 will maintain competitive rate comparisons throughout the next fiscal year.
Subset customers will be at or below July 2024 levels throughout FY 2025-26. CPA will assume PCIA and competitiveness risks, if any, from January to June 2026 for the new communities joining in October 2025. Subset rates may be adjusted for the new cities.
Staff clarified for Director Belden that delivery charges are not directly correlated to the PCIA or generation rates. Director Parkhurst asked how CPA would assume the new communities’ PCIA competitive risks, and Mr. Bardacke answered that CPA will adjust its rates to accommodate any change in their PCIA, and that staff anticipate their PCIA will be lower than that of member agencies that joined in 2018, at least through the end of calendar 2025. Director Lesser asked if any CPUC orders related to fire resiliency will result in higher rates; staff responded that delivery rates may increase, and those will be charged equally to all customers. Director Ellison inquired if staff has a plan to increase renewable energy content in Lean and Clean, noting that those percentages were higher in the past. Staff anticipates that the Clean product will likely have a higher percentage of renewable energy than the targeted 25% because of favorable market factors and that the long-term product content of the Lean and Clean rates will be on the agenda for discussion at the upcoming Board retreat.
COMMITTEE CHAIR UPDATES
Mr. Bardacke reported on behalf of Director Hicks, Chair of the Legislative Committee, stating that the Committee received a primer on the PCIA as the CPUC may make changes to it, a process that may take up to three years. Mr. Bardacke also reported that the Committee discussed anticipated modifications to the Greenhouse Gas Reduction Fund, with a focus on how those monies should be spent.
Agenda Page 11
Board of Directors Item 1
Director Parkhurst, Chair of the Energy Committee, announced CPA will be launching several RFOs, including the Innovation Solicitation, the Clean Energy and Reliability RFO, followed by Power Share in the summer. CPA has 12 contracts for the Power Share Program, two of which are already online.
MANAGEMENT REPORT
Mr. Bardacke reported that a new clean energy diorama is available for display at upcoming Earth Day events, and staff is looking forward to communicating with customers about CPA’s work.
Chair Klein Lopez shared that she and CPA staff met with federal legislators and trade associations in Washington DC to discuss how changes to tax credits and other federal policies could affect CPA’s operations and customers. Mr. Bardacke reported that they focused on renewable energy tax credits and tax-exempt municipal debt bonds, which CPA uses for pre-paid bonds. Lawmakers believe debt bonds won’t be affected during reconciliation because they are used in all 50 states for infrastructure. If the investment and production tax credits used by clean energy developers are repealed, it is expected that rates would rise on electricity, even production related to natural gas. Chair Klein Lopez added that CPA asked local members of Congress for earmarks to expand the Power Ready and Energized Communities programs.
BOARD MEMBER COMMENTS
Director Muñoz-Guevara thanked staff and the Board for their warm welcome, and Director Gold and City of Paramount officials for helping the City of Lynwood become a CPA member agency.
Director Ferguson asked if staff could prepare talking points for Board meetings that are aligned with CPA’s messaging so that Directors can report back to their city councils. Staff acknowledged his request.
REPORT FROM THE CHAIR
None.
ADJOURN
Chair Klein Lopez adjourned the meeting at 4:03 p.m.
Agenda Page 12
Staff Report – Agenda Item 2
To: Board of Directors
From: CC Song, Senior Director, Regulatory Affairs
Reviewed by: Matthew Langer, Chief Operating Officer
Nancy Whang, General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: CalCCA Special Assessment for SCE ERRA Review and Forecast Applications
Date: May 1, 2025
RECOMMENDATION
Approve CPA’s portion of the CalCCA Special Assessment for SCE’s 2024 Energy Resource Recovery Account (ERRA) Review Application and 2026 ERRA Forecast Application for a not-to-exceed amount of $268,000, which includes $160,000 for Keyes & Fox, and $108,000 for NewGen Strategies, LLC from April 1, 2025 to June 30, 2026.
BACKGROUND/DISCUSSION
Each year, SCE files an ERRA review application and an ERRA forecast application. In these applications, SCE sets and trues up the Power Charge Indifference Adjustment (PCIA), which impacts CPA’s competitiveness and CPA customer bills. CPA is a party to these proceedings and since 2023, CPA has been sharing the costs for engaging in SCE’s ERRA applications with the other four CCAs operating in SCE’s territory: California Choice Energy Authority, Central Coast Community Energy, Desert Community Energy, and Orange County Power Authority. The CCAs jointly have leveraged support from Keyes & Fox and NewGen Strategies LLC for legal and technical analysis and advocacy.
To reduce the administrative burden on the external counsel and technical consultants, CalCCA manages the contracts, invoices, and fund disbursements on behalf of the Agenda Page 13
Board of Directors Item 2
CCAs, with close consultation by CPA staff; CalCCA invoices CPA and the other CCAs for this regulatory work via “Special Assessments” to distinguish from regular CalCCA membership dues.
This year’s proposed special assessment is $420,000, with $250,000 of not-to-exceed (NTE) amount allocated to Keyes & Fox, and $170,000 to 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. Therefore, CPA’s total special assessment for engaging in SCE’s 2024 ERRA Review and 2026 ERRA Forecast applications is $268,000, with $160,000 allocated to Keyes & Fox, and $108,000 allocated to NewGen Strategies LLC.
The CPUC initiated a proceeding on reforming the PCIA in February 2025, which has two tracks (“the PCIA Reform Proceeding”). The first track will conclude in June 2025, which will impact CPA’s evaluation of SCE’s ERRA applications. Accordingly, in developing the special assessment budget, CCAs asked external consultants and counsel to budget for the potential impact on their scope of work that would result from the outcomes of the first track of the PCIA Reform Proceeding. This special assessment and budget reflect the anticipated scope of work from a potential CPUC decision in June 2025.
FISCAL IMPACT
The costs of the special assessment are included in CPA’s FY 2024-2025 and will be proposed in the FY 2025-2026 budget. Approving this special assessment will not incur incremental fiscal impact beyond what has been budgeted.
ATTACHMENT
1. CalCCA Special Assessment Letter
Agenda Page 14
California Community Choice Association
2300 Clayton Road, Suite 1150, Concord, CA 94520 | [email protected] | cal-cca.org California Community Choice Association
Operational Member Special Assessment Funding
(April 1, 2025 – June 30, 2026)
Clean Power Alliance
Dear Director Bardacke,
On [DATE] the Directors of California Choice Energy Authority, Clean Power Alliance, Central Coast Community Energy, Orange County Power Authority, and Desert Community Energy unanimously approved having CalCCA manage the Southern California Edison 2024 and 2026 ERRA review and forecast proceedings on behalf of the five CCAs as a Special Assessment outside of the typical annual Operational Membership dues.
As outlined below, the overall cost for the Keyes & Fox and NewGen contracts to support this work is $420,000. Applying the proportional rate of funding as provided by the five participating CCAs, this will result in a total special assessment cost of $268,000 for your CCA during the projected 15-month length of the contracts (April 1, 2025 – June 30, 2026). Knowing these contracts are estimated, CalCCA will perform budget reconciliations as needed to either issue increased funding amendments or a partial refund of unspent funding.
SCE CCAs
% of Special
Assessment Budget
Keyes & Fox
Contract (April 1,
2025 - June 30,
2026)
NewGen
Contract (April
1, 2025 - June
30, 2026)
Total Special
Assessment
Quarterly
Invoice Amount
(15 months, 6
Invoices)
$250,000 $170,000 $420,000
CPA 64% $160,000 $108,000 $268,000 $44,800
OCPA 15% $37,500 $25,500 $63,000 $10,500
CalChoice 14% $35,000 $23,800 $58,800 $9,800
3CE 4% $10,000 $6,800 $16,800 $2,800
DCE 3% $7,500 $5,100 $12,600 $2,100
100.00% $250,000 $170,000 $420,000 $70,000
Six quarterly payment invoices in the amount of $44,667 will be sent on the first of the month prior to the start of the Fiscal Year Quarter (September, December, March, and June) from the CalCCA QuickBooks system to your contact(s) on file. Payments are due 30 days after receipt of the invoice, before the Fiscal Year Quarter starts.
Agenda Page 15
Please contact me with any questions. We truly appreciate your contribution to the work of CalCCA and look forward to our success ahead.
Thank you,
Martha Serianz
California Community Choice Association
510-290-4187
[email protected]
Agenda Page 16
Staff Report – Agenda Item 3
To: Board of Directors
From: Kate Freeman, Strategic Finance Manager
David McNeil, Chief Financial Officer
Reviewed By: Nancy Whang, General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Adopt Resolution No. 25-05-083 Authorizing the Reduction of the Commitment to a Revolving Credit Agreement with JPMorgan Chase Bank, National Association (“JPM”), and Delegating Authority to Authorized Representatives to Further Reduce the Commitment Under the Credit Agreement from Time to Time.
Date: May 1, 2025
RECOMMENDATION
Adopt Resolution No. 25-05-083 to authorize a reduction in the amount of the credit facility (the “Commitment”) under CPA’s Revolving Credit Agreement (“Credit Agreement”) with JPM Chase Bank, N.A. by $40 million to $120 million, and delegate authority to CPA’s Authorized Representatives to further reduce the Commitment from time to time by no more than an additional $40 million thus maintaining a minimum Commitment of no less than $80 million.
BACKGROUND
In June 2023, the Board approved the First Amendment to its Credit Agreement with JPM, increasing the Commitment to $160 million from $80 million and extending the term of the agreement to March 31, 2024, from October 31, 2023. In March 2024, the Board approved an extension of the Maturity Date of the Credit Agreement to March 31, 2026, as well as the Second Amendment to the Fee Agreement with JPM which reduced borrowing rates and fees and included a provision that allows CPA to reduce the Commitment.
Agenda Page 17
Board of Directors Item 3
CPA builds reserves and liquidity pursuant to its board-approved Reserve Policy and uses the Credit Agreement to provide letters of credit and, if needed, to borrow funds to provide working capital. Maintaining a credit facility is important to meet the following objectives:
• Provide additional liquidity in the event of adverse market or regulatory events. • Support the days liquidity on hand (“DLOH”) target described in CPA’s Reserve Policy.
• Demonstrate financial strength to energy market participants and credit rating agencies.
CPA pays non-utilization fees based on the unutilized portion of the Commitment, and a reduction in the Commitment would reduce the non-utilization fees paid by CPA to JPM.
A reduction of the Commitment to $120 million will reduce non-utilization fees by over $100,000 through the March 31, 2026 Maturity Date.
In Q4 2025, CPA will begin negotiating a credit agreement that would commence on April 1, 2026.
DISCUSSION
Staff recommend the proposed action for the following reasons:
• Since 2023, cash and investments represent a growing share of liquidity, while the relative importance of the credit facility to CPA’s liquidity and DLOH is diminishing.
This trend is expected to continue into FY 2025/26 and beyond as described in the following chart.
Agenda Page 18
Board of Directors Item 3
• A reduction in the size of the Commitment is consistent with maintaining CPA’s A-credit rating, which is commensurate with a 150 DLOH level. • Absent an adjustment to the Commitment, CPA’s DLOH is projected to remain well above 150 DLOH.
• Staff will assess the timing and amount for additional Commitment adjustments in the future with the objective of maintaining CPA's DLOH at or above the 150-day target. Staff will also assess other factors in maintaining CPA’s A- credit rating when considering a further reduction in the Commitment and would provide notice to the Executive and Finance Committees of any further reduction of the Commitment below $120 million.
• Were CPA to request an increase in the Commitment in the future to, for instance, support a larger than expected letter of credit issuance, staff believe JPM would be supportive. Increases in the Commitment can typically be accomplished in 30- 60 days.
PROCESS
At its April 23, 2025, meeting, the Finance Committee recommended reducing the size of the Commitment by $40 million, from $160 million to $120 million, to provide additional savings on non-utilization fees to CPA. Furthermore, the Finance Committee recommended delegating authority to CPA’s Authorized Representatives to effectuate additional reductions in the Commitment as necessary, with the direction of maintaining a minimum Commitment of no less than $80 million.
FISCAL IMPACT
The proposed $40 million Commitment reduction is expected to decrease the cost of maintaining the Credit Agreement by $11,000 per month, for total savings through the maturity date of the Credit Agreement of $110,000. Additional savings could be achieved by future reductions to the Commitment. Savings associated with the proposed initial $40 million Commitment reduction will be included in the FY 2025/26 budget.
Agenda Page 19
Board of Directors Item 3
ATTACHMENTS
1. Resolution No. 25-05-083
2. Notice of Reduction of Commitment
Agenda Page 20
RESO NO. 25-05-083
RESOLUTION NO. 25-05-083
RESOLUTION OF THE BOARD OF DIRECTORS OF CLEAN
POWER ALLIANCE OF SOUTHERN CALIFORNIA (CLEAN
POWER ALLIANCE) AUTHORIZING THE REDUCTION OF THE
COMMITMENT TO A REVOLVING CREDIT AGREEMENT WITH
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION BY $40
MILLION TO $120 MILLION AND DELEGATING AUTHORITY TO
AUTHORIZED REPRESENTATIVES TO FURTHER REDUCE THE
COMMITMENT IN AN AMOUNT NOT TO EXCEED $40 MILLION
UNDER THE CREDIT AGREEMENT FROM TIME TO TIME.
THE BOARD OF DIRECTORS OF CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA DOES HEREBY FIND, RESOLVE, AND ORDER AS FOLLOWS:
WHEREAS, Clean Power Alliance of Southern California (“Clean Power Alliance” or “CPA”) was formed on June 27, 2017, under the provisions of the Joint Exercise Powers Act of the State of California, Government Code section 6500 et seq. (the “JPA Law”);
WHEREAS, Clean Power Alliance is duly organized, validly existing, and in good standing under and by virtue of the laws of the State of California, is duly authorized to transact business, having obtained all necessary filings, governmental licenses and approvals in the State of California, and has the full power and authority to own its properties and to transact the business in which it is presently engaged or presently proposes to engage;
WHEREAS, Clean Power Alliance maintains an office at 801 S. Grand Ave., Suite 400, Los Angeles, CA 90017, and this is the principal office at which it keeps its books and records;
WHEREAS, Clean Power Alliance is a community choice aggregator (as defined in Section 331.1 of the Public Utilities Code of the State of California (the “Public Utilities Code”), and is a public agency (as defined in the JPA Law) that has implemented a CCA program pursuant to Section 366.2 of the Public Utilities Code, and possesses the power to purchase and sell electric energy and enter into related contracts for such purposes; WHEREAS, Clean Power Alliance previously entered into a Revolving Credit Agreement dated as of September 22, 2021 (the “Original Credit Agreement”) with JPMorgan Chase Bank, National Association (the “Bank”); WHEREAS, Clean Power Alliance amended and restated the Original Agreement pursuant to a First Amendment to Credit Agreement dated June 8, 2023 with the Bank which among other things, increased the commitment from $80,000,000 to $160,000,000, replaced all LIBOR related provisions with SOFR provisions, amended the conditions precedent to borrowings related to a material adverse effect event of default, narrowed various representations with respect to material adverse effects, updated certain Bank regulatory provisions (relating to beneficial ownership certifications and OFAC and anti-
Agenda Page 21
RESO NO. 25-05-083
money laundering provisions) and clarified events of default relating to material adverse effects;
WHEREAS, pursuant to Section 2.6 of the Credit Agreement, Clean Power Alliance may at any time reduce the commitment thereunder (the “Commitment”); WHEREAS, on September 27, 2023, CPA received an ‘A-’ credit rating from Standard & Poor’s Global Ratings agency;
WHEREAS, since 2023, CPA’s cash and investments represent a growing share of liquidity, while the relative importance of the credit facility to CPA’s liquidity and days liquidity on hand (“DLOH”) is diminishing;
WHERAS, CPA continues to pay non-utilization fees for the full Commitment amount even though the relative importance of the credit facility is diminishing and CPA expects that a $40,000,000 reduction in the Commitment will result in cost savings in the amount of $110,000 through the end of the Credit Agreement term; and, WHEREAS, the Board desires to reduce the current Commitment of $160,000,000 under the Credit Agreement to $120,000,000 and to delegate authority to authorized representatives (defined below) of Clean Power Alliance to further reduce the Commitment under the Credit Agreement from time to time in an amount not to exceed $40,000,000 thereby maintaining a minimum Commitment of no less than $80,000,000;
NOW, THEREFORE, IT IS HEREBY DETERMINED, AFFIRMED, AND
ORDERED BY THE BOARD OF DIRECTORS OF THE CLEAN POWER ALLIANCE as follows:
Section 1. AUTHORIZED REPRESENTATIVES. The following named individuals are the authorized representatives of Clean Power Alliance with the respective titles specified below (collectively referred to as “Authorized Representatives” and individually referred to as an “Authorized Representative”):
NAMES TITLES
Deborah Klein Lopez Chair of the Board
Theodore Bardacke Chief Executive Officer
David McNeil Chief Financial Officer
Matthew Langer Chief Operating Officer
Nancy Whang General Counsel
Section 2. Approval of Reduction of Commitment of Credit Agreement. The Board hereby determines that it is the best interest of Clean Power Alliance to reduce the Commitment under the Credit Agreement by $40,000,000 to $120,000,000 (the “Commitment Reduction”). Each Authorized Representative is hereby authorized and directed, for and on behalf of Clean Power Alliance, to execute and deliver such certificates and documents necessary to effectuate the Commitment Reduction, including without limitation, delivery of the Notice of Reduction of Commitment attached as Exhibit A hereto. Each Authorized Representative is hereby authorized and directed, for and on
Agenda Page 22
RESO NO. 25-05-083
behalf of Clean Power Alliance, to effectuate further reductions to the Commitment and to execute and to deliver such certificates and documents necessary to effectuate further reductions, as authorized and directed by the Chief Executive Officer and the Chief Financial Officer in consultation with the Chair of the Board, in an amount not to exceed $40,000,000 to the Commitment from time to time thereby maintaining a minimum Commitment of no less than $80,000,000.
IT IS HEREBY FURTHER DETERMINED AND ORDERED that the Authorized Representatives are duly elected, appointed, or employed by or for Clean Power Alliance, as the case may be. This Resolution now stands of record on the books of Clean Power Alliance, is in full force and effect, and has not been modified or revoked in any manner whatsoever.
IT IS HEREBY FURTHER DETERMINED AND ORDERED that any and all acts authorized pursuant to this Resolution and performed prior to the passage of this Resolution are hereby ratified and approved.
IT IS HEREBY FURTHER DETERMINED AND ORDERED that this Resolution shall take effect upon its passage, shall be continuing and shall remain in full force and effect unless and until expressly revoked by further resolution of the Board of Directors.
ADOPTED AND APPROVED this 1st day of May 2025.
____________________________
Deborah Klein Lopez, Chair
ATTEST:
_________________________
Gabriela Monzon, Secretary
Agenda Page 23
RESO NO. 25-05-083
EXHIBIT A
Notice of Reduction of Commitment
(see attached)
Agenda Page 24
801 S. Grand Ave., Suite 400, Los Angeles, CA 90017
cleanpoweralliance.org
NOTICE OF REDUCTION OF COMMITMENT
May 1, 2025
JPMorgan Chase Bank, National Association
383 Madison Avenue, 3rd Floor
New York, New York 10179
Mail Code: NY1-M076
Attention: Allyson Goetschius or Janice Fong
Email: [email protected] or
[email protected]
JPMorgan Chase Bank, National Association
JPM-Delaware Loan Operations
500 Stanton Christiana Road, NCC5, Floor 01
Newark, DE 19713-2107
Attention: PFG Servicing
Email/Fax: [email protected]
and [email protected]
Ladies and Gentlemen:
This irrevocable Notice of Reduction is delivered to you pursuant to Section 2.(b) and (c) of that certain Revolving Credit Agreement dated as of September 22, 2021 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and between Clean Power Alliance of Southern California (the “Borrower”) and JPMorgan Chase Bank, National Association (the “Bank”). Capitalized terms used herein and not defined herein shall have the meanings assigned thereto in the Credit Agreement.
The Borrower hereby elects to permanently reduce the Commitment by $40,000,000 (the “Commitment Reduction”) to $120,000,000. The Commitment Reduction shall be effective on and after May 7, 2025.
The undersigned hereby certifies that, after giving effect to the Commitment Reduction and any concurrent prepayment of the Loans in accordance with Section 2.8 of the Credit Agreement, the Revolving Credit Exposure will not exceed the Commitment. [signature page follows]
Agenda Page 25
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA
By:____________________________________
Name: Theodore Bardacke
Title: Chief Executive Officer
Agenda Page 26
Staff Report – Agenda Item 4
To: Board of Directors
From: Gina Goodhill, Senior Director, Government Affairs Approved By: Ted Bardacke, Chief Executive Officer
Subject: Receive and File May 2025 Bill Positions Report Date: May 1, 2025
RECOMMENDATION
Receive and file.
ATTACHMENT
1. 2025 Legislative and Regulatory Policy Platform
Agenda Page 27
Board of Directors Item 4
Bill Number &
Author
Title & Summary Status CPA Position Alignment with
CPA Policy
Platform
Notes
AB 729
Assemblymember Rick
Zbur
Public Utilities, Climate
Credits: Would move the
California Climate Credit on
customer bills from April and
October to August and
September.
4/23/25
Passed out of
Asm. Energy
Committee. Set
for hearing in
Asm. Committee
on Natural
Resources
4/28/25
Sponsor 5a August and
September are the
two months (along
with July) in which
CPA customers
typically have their
highest electricity
bills. In CPA territory,
close to 1/3 of
customers on an
income-qualified rate
are unable to pay
their full bills in
September. Moving
the Climate Credit to
hotter months will
increase affordability
during the months
when customers
most need it.
SB 330
Senator Steve Padilla
Electrical transmission
infrastructure: financing
Would identify transmission
infrastructure pilot projects
4/17/25
Set for hearing in
Senate Energy
Support 1e This bill explores a
public-private
partnership model to
develop
Agenda Page 28
Board of Directors Item 4
that state or local public
agencies could develop,
finance, or operate.
Committee
4/29/25
transmission, which
could bring down the
cost of transmission
for ratepayers by
leveraging the
municipal tax status
afforded to public
agencies.
SB 540
Senator Josh Becker
Independent System
Operator: independent
regional organization
Pathways bill to establish a
regional energy cooperative
(“regionalization”) to optimize
California’s energy markets,
increase grid reliability,
reduce costs to ratepayers,
and accelerate the transition
to clean energy.
4/22/25
Passed out of
Senate Energy
Committee. Set
for hearing in
Senate Judiciary
4/29/25
Support 2g This is the much-anticipated
regionalization bill
that CPA and others
have been expecting
since the Pathways
conversation began
several years ago
and which the Board
took a support
position on the
concept in December
2023.
SB 239
Senator Jesse Arreguin
Open meetings:
teleconferencing:
subsidiary body. Would
allow subsidiary bodies of a
local agency to hold
teleconference meetings
4/8/25
Set for hearing in
Senate Judiciary
5/6/25
Support 5c This bill would allow
our Community
Advisory Committee
to meet remotely,
thus increasing
opportunities to
Agenda Page 29
Board of Directors Item 4
without having to notice and
make publicly available each
teleconference location
participation of
volunteers.
AB 306
Assemblymember Nick
Schultz
Building regulations: state
building standards
Would prohibit a city or
county from making changes
to the building code until
June 1, 2031.
4/23/20
Passed out of
Asm., referred to
Senate
Committee on
Housing and
Local Gov.
Watch 3a, 3b This could have an
impact on CPA’s
Reach Code
Program and local
government
autonomy.
AB 1260
Assemblymember
Christopher Ward
Renewable energy
subscription programs
Would re-open the
community solar proceeding
at the CPUC to modify the
calculations in avoided costs,
among other things.
4/24/25
Passed out of
Asm. Committee
on Energy,
referred to
Appropriations
Committee
Watch 3c This could have an
impact on CPA’s
Power Share
program.
AB 303
Assemblymember Dawn
Addis
Battery Storage Facilities
Imposes requirements to site
battery storage facilities,
uses the same sensitive
receptors, land use
restrictions, and set back
requirements as new oil well
requirements.
4/2/25
Referred to
Committees. on
Asm. Energy,
Asm. Natural
Resources, and
Asm. Local Gov.
Watch 2a
Agenda Page 30
Board of Directors Item 4
SB 283
Senator John Laird
Battery energy storage
facilities: emergency
response plans and
emergency action plans.
Placeholder bill for
alternative to AB 303 (Addis)
4/9/25
Set for hearing in
Senate Local
Gov. Committee
4/30/25
Watch 2a
SB 256
Senator Sasha Renee
Perez
Electricity: electrical
infrastructure. Would
require electrical utilities to
prioritize undergrounding of
power lines, strengthen
public safety power shut off
standards and accountability,
requires union labor for the
undergrounding. Would also
grant CPUC the ability to
immediately access all
relevant fault data related to
natural disasters.
4/11/25
Set for hearing in
Senate Energy
Committee on
4/29/25
Watch 2e, 3b, 3c
SB 332
Senator Aisha Wahab
Investor-Owned Utilities
Accountability Act.
Requires the CEC to
commission a report
exploring options to transition
away from the IOU model,
among other things.
4/23/25
Passed out of
Senate Energy,
set for hearing in
Senate
Appropriations
5/5/25
Watch 1d, 5a
Agenda Page 31
Board of Directors Item 4
AB 1117
Assemblymember Nick
Schultz
Electricity: rates: optional
dynamic rate tariffs
Would require the CPUC to
develop optional dynamic
rate tariffs and would give
ratepayers the options to
elect a dynamic rate tariff
4/8/25
Set for hearing in
Asm.
Appropriations
Committee
4/30/25
Watch 1a
SB 541
Assemblymember Josh
Becker
Electricity: load shifting:
dynamic pricing
Would require the CEC to
allocate load shifting goals to
load serving entities (LSE),
would require LSE’s to meet
load-shifting goals and to
offer dynamic pricing tariffs.
4/21/25
Passed out of
Senate Energy,
referred to
Appropriations
Committee
Watch 1a, 1d It is not yet clear how
this bill would interact
with a recent
rulemaking on
dynamic pricing at
the CEC and CPUC.
AB 740
Assemblymember John
Harabedian
Virtual power plants: load
shifting Would require the
CPUC to create a strategy
and perform a study to better
understand the impact of
virtual power plants (VPP) on
the grid.
4/24/25
Passed out of
Asm. Energy,
sent to
Appropriations
committee
Watch 2a, 2d Virtual power plants
consist of a network
of decentralized,
medium scale power
generating units and
flexible loads such as
batteries, EVs, smart
appliances, and
flexible heating and
cooling loads
Agenda Page 32
Board of Directors Item 4
AB 825
Assemblymember Cottie
Petrie-Norris
Public Transmission
Financing Act of 2025
Would create a Public
Transmission Program that
would utilize $325 million of
Proposition 4 funds to fund
efforts to lower the cost of
transmission projects
4/22/25
Referred to Asm.
Committee on
Energy to be
heard 4/30/25
Watch 1e, 2d
SB 254
Senator Josh Becker
Electricity: wildfire
mitigation: rate assistance:
Policy-oriented and wildfire
electric reimbursement
(POWER) Program
Would create a statewide
authority to develop
transmission and other
infrastructure; would
overhaul the framework for
oversight of wildfire
mitigation; increases the
climate credit for
CARE/FERA customers;
increases the burden of proof
for IOUs to raise rates, and
more.
4/22/25
Set for Senate
Energy
Committee
hearing on
4/29/25
Watch 1e, 2d, 4b, 5a This 161-page bill
was a recent gut-and-amend and
appears to be the
main vehicle in the
Senate to tackle
energy affordability,
wildfires costs, and
rates transparency.
Agenda Page 33
Board of Directors Item 4
AB 942
Assemblymember Lisa
Calderon
Net energy metering:
eligible customer-generators: tariffs
Would require existing NEM
customers to shift to a net-billing tariff after 10 years and would disqualify a
customer-generator from
receiving the Climate Credit.
3/26/25
Referred to Asm.
Energy
Committee to be
heard 4/30/25
Watch 3a, 5c
Agenda Page 34
Final 2025 Legislative and Regulatory Policy Platform
Overview and Purpose
The Clean Power Alliance (CPA) Legislative and Regulatory Policy Platform (Platform) serves as a guide to the CPA Board of Directors and CPA staff in their advocacy efforts and engagement on policy matters of interest to CPA. The Platform allows both members of the CPA Board of Directors and CPA staff to pursue actions at the regional, state and federal legislative and regulatory levels in a consistent manner and with the understanding that they are pursuing actions in the best interest of the organization and its mission, its member agencies, and its customers.
The Platform provides direction to CPA staff on positions that should be taken on regulatory matters and legislative bill proposals. The Platform also provides guidance to the Chief Executive Officer on positions that should be taken on legislative and regulatory matters that come before the California Community Choice Association (CalCCA) Board of Directors.
CPA staff report to the Board monthly on all positions taken on legislative bills. For bills that fall outside the scope of this platform; bills that are likely to attract high-profile supporters and detractors, including bills that would modify the California Environmental Quality Act (CEQA); bills that would raise taxes; or bills that would knowingly put CPA at odds with positions that its member agencies have taken, CPA staff will seek approval of a proposed position to the Legislative & Regulatory Committee and Board of Directors before taking a position.
Policy Principles
The Legislative and Regulatory Policy Platform is centered around five basic principles:
1. Protecting CPA’s local control and competitive position, especially as it relates to rates, finances, power procurement and expansion of its service territory.
2. Pursing power resource planning and procurement that promotes the growth in renewable energy capacity at the local, state, and regional level and reduces fossil fuel dependency, with the goal of combating climate change.
Agenda Page 35
3. Developing and administering customer programs that encourage clean energy adoption by CPA customers and the use of that clean energy in an efficient and managed way to support cost reduction and grid reliability.
4. Ensuring fair access to data, particularly as it relates to energy usage, billing, and information needed to develop and administer customer programs.
5. Supporting CPA’s ability to set electric rates and offer programmatic services that are affordable and inclusive for all.
These principles are incorporated throughout the below platform.
Policy Platform
1. Affordability and Local Control
a. Fair rates and cost allocation: CPA will pursue administrative and legislative initiatives that will ensure that non-bypassable charges for CPA customers, including any income-graduated fixed charges, are assessed fairly compared to bundled customers and that CPA’s customers are not unnecessarily burdened by non-bypassable charges.
b. Finances: CPA will pursue administrative and legislative initiatives to ensure that CPA is eligible to apply and receive funding made available to the electricity sector for decarbonization, reliability, and affordability purposes, and that CPA’s financial health is not disparately impacted by new regulations. c. CCA Expansion: CPA will pursue administrative and legislative initiatives to protect CPA’s ability to expand its service to new member agencies. d. Local Control: CPA will pursue administrative and legislative initiatives to protect CPA Board’s authority over CPA’s procurement, rate-setting, governance, and customer program development activities.
e. Infrastructure Financing: CPA will pursue administrative and legislative initiatives that support alternative approaches to financing energy infrastructure that reduce costs for all customers.
2. Power Resources Planning and Procurement
Agenda Page 36
a. Resource Adequacy and Reliability: CPA will pursue administrative and legislative initiatives that will enable CPA to secure capacity resources to meet its reliability obligations, such as initiatives that evaluate the supply of capacity resources available to load serving entities (LSEs), determine the appropriate market mechanisms for LSEs to procure capacity resources, and develop a durable policy framework that encourages all LSEs to construct their fair share of new capacity resources to maintain grid reliability while pursuing decarbonization efforts.
b. Renewable and Carbon-Free Resources: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to procure eligible Renewable Portfolio Standard (RPS) and carbon-free resources to meet the needs of CPA’s three product offerings and its long-term RPS procurement goal as required by SB 100 and other statutory or regulatory obligations. c. Integrated Resource Plan: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to plan and procure resources to meet various environmental and reliability goals set by state laws and by its Board of Directors, while offering affordable products and programs to serve its customers, including disadvantaged communities.
d. Transmission: CPA will pursue administrative and legislative initiatives that will expedite new transmission infrastructure needed to meet California’s climate goals, as well as initiatives that will provide CPA adequate access to transmission capacity to maximize its procurement of RPS-eligible or carbon-free resources that meet various statutory and regulatory requirements. e. Access to the Electrical Grid: CPA will pursue administrative and legislative initiatives that support reducing timelines in interconnection and service extensions for new construction, critical services, renewable energy, building decarbonization, and other projects in CPA’s service territory. f. Research & Development: CPA will pursue administrative and legislative initiatives that support the research and development of new energy resources that can be procured to meet the reliability and decarbonization goals set by the State and its Board of Directors.
g. Grid Reliability: CPA will pursue administrative and legislative initiatives that support the expansion of a regional Western energy grid that improves reliability; accelerates decarbonization; improves transmission planning; reduces costs for ratepayer and load serving entities; maintains California’s ability to set, meet
Agenda Page 37
and implement its own climate goals; and protects clean energy jobs within the State.
3. Customer Programs
a. Demand Response, Demand Flexibility and Energy Efficiency: CPA will pursue administrative and legislative initiatives that will enable CPA and its customers to develop and participate in programs that promote the use of clean energy in an efficient and managed way to support cost reduction, grid reliability, and lower greenhouse gas emissions.
b. Building and vehicle decarbonization: CPA will pursue administrative and legislative initiatives that support the ability of CPA to promote statewide building and vehicle decarbonization, primarily through electrification. c. Local Grid Management and Resiliency: CPA will pursue administrative and legislative initiatives that supports the ability of CPA and its member agencies to offer local grid management and resiliency solutions to increase local reliability, and adaptability that could protect against power outages and extreme heat. d. Research and Development: CPA will pursue administrative and legislative initiatives that support the ability of CPA to explore new opportunities related to behind the meter clean energy resources.
4. Data Access
a. Timely and Accurate Access to Customer Data: CPA will pursue administrative and legislative initiatives that will enable CPA to obtain timely and accurate access to its customers’ data to improve billing accuracy and inform the development and implementation of customer programs.
a. Fair Fees for Data Management Services: CPA will pursue administrative and legislative initiatives to ensure that the fees due to Southern California Edison for data access and management are fairly assessed based on data needs and potential technological improvements.
b. Billing Transparency: CPA will pursue administrative and legislative initiatives that increase customer understanding of electricity bill components and display
Agenda Page 38
electricity charges in a clear and consistent manner for both bundled and unbundled customers.
5. Diversity, Equity, Inclusion
a. Customer Protection: CPA will pursue administrative and legislative initiatives that support the protection of all ratepayers, particularly environmental and social justice communities in CPA’s service territory.
b. Supplier Diversity: CPA will pursue administrative and legislative initiatives that supports supplier diversity in CPA’s contracting activities and through women-owned, minority-owned, disabled-veteran-owned, and lesbian, gay, bisexual, and/or
c. Energy Equity: CPA will pursue administrative and legislative initiatives that support increased access to clean energy technologies, workforce development initiatives that support the clean energy industry, and clean energy opportunities for environmental and social justice communities in CPA’s service territory.
Agenda Page 39
Staff Report – Agenda Item 5
To: Board of Directors
From: Christian Cruz, Senior Community Outreach Manager Approved by: Ted Bardacke, Chief Executive Officer
Subject: Community Advisory Committee (CAC) Report
Date: May 1, 2025
RECOMMENDATION
Receive and file.
MEETING REPORT
CPA Rate Setting Approach
The CAC received a presentation on CPA’s FY 2025–2026 rate-setting approach, which will guide the rates that the Board will vote on at its June meeting. Two options were presented to the CAC based on the 2025–2026 rate product content approved by the Board in April 2024, as follows:
• Option 1 – provides a reserve percentage between 45-50% and 150-152 Days Liquidity on Hand (DLOH)
• Option 2 – provides a reserve percentage between 47-53% and 162-182 DLOH This product content also aims to maintain CPA’s overall preference for renewables, preserve the 100% Green product, and support 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 is driven by the relative renewable and carbon-free content of each product
Agenda Page 40
Board of Directors Item 5
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 the Reserve Policy’s maximum reserve target of 50% in FY 2025/26 or FY 2026/27
4. SCE rate volatility. SCE’s October 2025 generation rate increase will improve CPA's competitiveness, but the 2026 PCIA and SCE generation rates are uncertain, and CPA’s competitive position in 2026 may worsen.
Additionally, the CAC was notified that CPA’s competitive position will improve across all rate schedules in October with the reversal of SCE’s October 2024 generation rate drop.
The CAC suggested that CPA consider moving forward with the option that best enables the agency to prepare for future uncertainty or volatility related to the PCIA and its potential impact on rates—by maintaining CPA reserves at the desired level—while also preserving competitive rates across all products. The Committee also requested that staff provide future updates as the CPUC considers changes to the PCIA.
ATTACHMENT
1. CAC Meeting Attendance
Agenda Page 41
Board of Directors Item 5
Community Advisory Committee Attendance
2025
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov
East Ventura/West LA County
Angus Simmons ✓ ✓ ✓ ✓
Kat Selm ✓ ✓ ✓ A
Debbie West A A A A
San Gabriel Valley
Richard Tom A ✓ ✓ A
Vacant
West/Unincorporated Ventura County
Kent Bullard A ✓ ✓ ✓
Daniel Mora ✓ A ✓ ✓
South Bay
Cort Casady ✓ ✓ ✓ ✓
Diane Wallace ✓ ✓ ✓ ✓
Gateway Cities
Vacant
Genaro Bugarin ✓ ✓ ✓ ✓
Westside
Cris Gutierrez ✓ A ✓ ✓
David Haake A ✓ ✓ A
Unincorporated LA County
Neil Fromer ✓ ✓ ✓ ✓
Vacant
✓ - Attended A – Absent X – Medical/Personal Leave
Action Items and Presentations
January
Low Income Solar and Storage Program
July
February
Legislative Update and 2025 Policy Platform
CPA Programs General Update
August
March
CPA Programs Fire Response Programs
September
April
FY 2025/2026 Rate Options
October
May November
June December
Agenda Page 42
Staff Report – Agenda Item 6
To: Board of Directors
From: Karen Schmidt, Senior Director, Rates & Strategy
Approved By: Ted Bardacke, Chief Executive Officer
Matthew Langer, Chief Operating Officer
Subject: FY 2025/26 Rate Setting Approach
Date: May 1, 2025
RECOMMENDATION
Approve a rate setting approach for FY 2025/26:
(a) Select an option based on CPA’s projected cost of service (COS) that establishes a reserve percentage target and resulting total bill comparison levels for residential and small business rates using Southern California Edison’s (SCE) June 1, 2025 rates1:
I. Option 1 – Medium Reserve Option with a reserve percentage target of 45- 50%: Target 100% Green Power rates to provide a 5% premium, Clean Power at a 1% discount, and Lean Power at a 3% discount; II. Option 2 (Recommended by Executive Committee) – Strengthened Reserve Option with a reserve percentage target of 47-53%: Target 100% Green Power rates to provide a 6% premium, Clean Power at a 0% discount and, Lean Power at a 2% discount;
(b) Update rates for large commercial, industrial, pumping and agriculture, and streetlighting rate classes2 to reflect CPA’s projected COS and based on the selected reserve option;
1 These options are all based on total bill comparisons using projected SCE rates as of June 1, 2025. Final rates will be based on actual SCE rates effective June 1, 2025 and the Board-approved total bill comparison targets. 2 A list of these rate classes is on page 48, below.
Agenda Page 43
Board of Directors Item 6
(c) Set subset rates for customers in the cities of La Cañada Flintridge, Lynwood, and Port Hueneme to reflect CPA’s projected COS and based on the selected reserve option, provided that total bill comparisons for each rate class do not exceed the Board-Approved July 2024 Levels
BACKGROUND
Considerations for FY 2025/26 rate setting include:
• Progress toward CPA Board-approved reserve targets
• Competitiveness with SCE
• Future PCIA and SCE generation rate volatility
• Price spread between CPA’s three retail rate products CPA Product Price Differentials
In April 2024, the Board approved 2025-2026 rate product content targets that maintain CPA’s overall preference for renewables, keep the 100% Green product intact, and allow for competitive rates:
o 100% Green: 100% renewables
o Clean Power: 50% clean energy with a minimum 25% of the clean energy coming from renewables and the remainer carbon-free large hydropower o Lean Power: 40% clean energy from carbon-free large hydropower Based on these targets, CPA’s Cost of Service (COS) analysis projects a 2% increase in the product price differential between Lean and 100% Green Power in FY 2025/26. While the projected COS for 100% Green and Clean Power is decreasing as renewable energy prices are coming down, Resource Adequacy and brown power prices are coming down faster, resulting in a relatively larger decrease in the projected COS for Lean Power. The rate options being presented to the Board reflect this widening of the product price differentials.
Agenda Page 44
Board of Directors Item 6
Product Price Differentials (Total Bill, Compared to Lean Power*) Energy
Product FY 2020-21 FY 2022-23 FY 2023-24 FY 2024/25 FY 2025/26 Projected Lean 0% 0% 0% 0% 0%
Clean +1% +1% +1% +1% +2%
100% Green +10% +4% +5% +6% +8%
*Product differentials based on projected CPA cost of service and average total customer bills.
Competitiveness with SCE
CPA’s Board set residential and small business rates for FY 2024/25 in June 2024 such that 100% Green Power was targeted to be at a 5% premium compared to SCE’s total bill, Clean Power was targeted to be at parity with SCE, and Lean Power was targeted to be at a 1% discount to SCE for most customers, based on SCE rates effective June 1, 2024.3 In October 2024 and January 2025, CPA bill comparisons to SCE worsened as a result of reductions in SCE’ generation rates. In February 2025, the CPA Board adopted an interim rate adjustment that went into effect March 1, returning total bill comparisons close to the FY 2024/25 targets.
SCE’s October 2024 generation rate decrease will be reversed in October 2025. This SCE generation rate increase will improve CPA’s competitive position across all rate schedules starting October 1.
Residential Total Bill Comparisons to SCE at Current CPA Rates* Energy
Product
July
2024
October
2024
January
2025
March
2025
June 2025
(Projected)
October 2025
(Projected)
Lean -1.0% +3.6% +7.0% 0.0% 0.0% -4.3%
Clean 0.0% +4.6% +8.0 % +1.0% +1.0% -3.3%
100% Green +5.0% +9.7% +13.0% +6.0% +6.1% +1.5%
*Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profile for each rate class, SCE rates as of the dates specified in the table. Individual customer comparisons vary by specific rate schedule and customer usage.
3 This was the “Medium Reserve” option among the options considered by the Board in May 2024.
Agenda Page 45
Board of Directors Item 6
Reserve Goals
The CPA Board’s Reserve Policy sets a minimum reserve target of 30% and maximum target of 50% of total operating budget expenses, and a goal of at least 120 days liquidity on hand (DLOH). Consistent with the Reserve Policy, CPA has steadily grown its reserves and liquidity and expects to reach the maximum reserve target of 50% in FY 2025/26 or FY 2026/27. Making progress towards the maximum reserve target in FY 2025/26 would strengthen CPA’s ability to weather continued market volatility while enabling CPA to continue offering competitive rates.
Future PCIA and SCE Rate Volatility
The California Public Utilities Commission (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 for all CPA customers and a conversion of October 2025 bill discounts into bill premiums relative to SCE across all rate products beginning in January 2026, potentially triggering Board consideration of an interim rate adjustment.
DISCUSSION
CPA expects to continue to maintain a strong competitive position and value proposition while ensuring resilience through ongoing market volatility and continuing progress towards achieving strategic financial goals in FY 2025/26.
Staff’s recommended FY 2025/26 rate approach has three components:
1. Reserve options with resulting total bill comparison levels for residential and small business customers
2. Subset rates based on the selected reserve option
3. Subset rates for member communities beginning service in October 2025 Agenda Page 46
Board of Directors Item 6
Total Bill Comparison Levels
Staff developed two options for total bill comparison levels for residential and small business customers who collectively represent over 99% of CPA customer accounts. The options are informed by CPA’s cost of service and the Board’s operating reserve and liquidity goals. Total bill comparisons will be competitive with SCE and within CPA’s historical rate comparison ranges under all scenarios based on projected SCE rates as of June 1, 2025.
The Executive Committee unanimously supported Option 2, the Strengthened Reserve Option.
FY 2025/26 Rate Scenarios
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 2024/25
Year-end (Projected) 0.0% 1.0% 6.1% $131-140M 44-45% 150-152 FY 2025/26
Medium Reserve
Option
-3.0% -1.0% +5.0% $2-48M 45-50% 154-174
FY 2025/26
Strengthened Reserve
Option (ExCom
Recommendation)
-2.0% 0% +6.0% $34-79M 47-53% 162-182
*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.
See Appendix for detailed total bill comparisons for residential and small business customers on each option.
Option 1: Medium Reserve Option
This approach targets 100% Green Power at a 5% premium to SCE, Clean Power targeted at a 1% discount to SCE, and Lean Power targeted at a 2% discount to SCE.
This would result in a reduction in generation charges for all customers. It would result in Agenda Page 47
Board of Directors Item 6
a projected $2-48 million contribution to CPA’s net position, operating reserves of 45- 50%, and 154-174 DLOH as of June 30, 2025. Staff believe this option would have CPA reaching its maximum reserve target in FY 2026/27 and, compared to Option 2, would limit CPA’s flexibility in calendar year 2026 should changes to the PCIA and SCE’s generation rates impact CPA’s competitiveness and customer bills.
Option 2: Strengthened Reserve Option (recommended by Executive Committee) This approach targets 100% Green Power at a 6% premium to SCE, with Clean Power targeted at parity with SCE and Lean Power targeted at a 2% discount to SCE. This would result in a decrease in generation charges for customers on Lean and Clean Power compared to current levels, while maintaining generation charges for 100% Green Power at or just below current levels. Projected contribution to net position would be $34-79 million, with operating reserves at 47-53% and 162-182 DLOH projected as of June 30, 2026. Staff believe this option increases the possibility of CPA reaching its maximum reserve target in FY 2025/26 and, compared to Option 1, provides more flexibility to respond to potential PCIA and SCE generation rate changes in calendar year 2026.
Subset Rates
Most large commercial and industrial, pumping and agricultural, and streetlighting rates are referred to internally as “subset” rates4. Fewer than 9,900 CPA customers, or less than 1%, are on subset rates.
Bill comparisons relative to SCE for subset rates have historically been less competitive than residential and small business rates, however they have improved over time. Under both Reserve Options presented above, most subset customers would have at least one option that is at a total bill discount to SCE rates.
4 Subset rates include TOU-8 and TOU-GS-3 rate classes for customers in Rolling Hills Estates, South Pasadena, and unincorporated Los Angeles County. Subset rates include TOU-8, TOU-GS-3, TOU-PA-2, TOU-PA-3, and LS-1 rate classes in all other parts of CPA’s service territory. The variation is due to those customers having different PCIA vintages.
Agenda Page 48
Board of Directors Item 6
FY 2025/26 Total Bill Comparison Scenarios – Subset Rates Rate
Schedule
Medium Reserve Option Strengthened Reserve Option
(Recommended)
Lean Clean 100% Green Lean Clean 100% Green
TOU-GS-3-D -3.0% -0.7% 7.7% -2.0% 0.3% 8.7%
TOU-8-D-SEC -2.6% 0.5% 9.1% -1.5% 1.6% 10.2%
TOU-PA-2-D -3.9% -2.2% 6.9% -2.8% -1.2% 8.1%
TOU-PA-3-D -3.3% -1.9% 7.8% -2.1% -0.9% 9.0%
LS-1 12.7% 16.7% 25.9% 14.1% 17.9% 27.2%
* Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profiles for each specified rate class and SCE rates as of June 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.
Subset Rates for New Member Communities
In December 2024 the Board approved a rate setting approach for the three communities CPA will begin serving in October 2025 – La Cañada Flintridge, Lynwood, and Port Hueneme – to inform these communities’ selection of a preferred energy option and to provide competitive and predictable rates for new customers as they begin CPA service.
The approach maintains total bill comparisons for residential and small and medium business customers for the duration of FY 2025/26 at the July 2024 levels adopted by the Board for current customers last June, with Lean Power at a 1% total bill discount to SCE, Clean Power at parity with SCE, and 100% Green Power at a 5% total bill premium.
For subset customers in the new communities, the Board-approved approach maintains total bill comparisons at or below July 2024 levels throughout FY 2025/26 (see Appendix).
As subset rates are becoming more competitive, staff recommend that subset rates for these communities be set based on CPA’s projected COS, provided that the total bill comparisons for each subset rate class do not exceed the Board-approved July 2024 levels.
Agenda Page 49
Board of Directors Item 6
Other Proposed Rate Authorizations
The FY 2025/26 rates submitted for Board approval in June will include authorization or reauthorization for the following rate schedules:
• Power Share: Staff will provide updated rates for the Power Share program based on proposed FY 2025/26 residential rates and SCE rates as of June 1, 2025. • Peak Management Pricing: Staff will recommend continuing the Peak Management Pricing (PMP) program for a seventh year and will propose updated PMP rates for the program.
• Wind Credits: Staff will request reauthorization of the existing legacy Wind Credits for eligible small and medium-sized agricultural customers.
Summary of Options and Recommendations
The Executive Committee supported staff recommendations as described below on subset rates and new member community subset rates, and recommended that the Board adopt Option 2 – Strengthened Reserve Option – for residential and small business bill comparison targets:
• Reserve percentage target and resulting total bill comparison levels: Select an option based on CPA’s projected COS that establishes a reserve percentage target and resulting total bill comparison levels for residential and small business rates:
o Option 1 – Medium Reserve Option: projected 45-50% reserves; o Option 2 – (Recommended by Executive Committee) Strengthened Reserve Scenario: projected 47-53% reserves;
• Update subset rates: Update streetlighting, pumping and agricultural, and large commercial and industrial subset rates to reflect CPA’s projected COS based on the selected reserve option;
Subset rates for new member communities: Set subset rates for customers in the cities of La Cañada Flintridge, Lynwood, and Port Hueneme to reflect CPA’s projected COS and based on the selected reserve option, provided that total bill comparisons for Agenda Page 50
Board of Directors Item 6
each rate class do not exceed the Board-approved July 2024 levels.
Community Advisory Committee Input
Staff presented the FY 2025/26 rates outlook and rate setting options to the Community Advisory Committee in April. The CAC suggested that CPA move forward with the option that best enables the agency to prepare for future uncertainty or volatility related to the PCIA and its potential impact on rates, while preserving competitive rates across all products.
NEXT STEPS
At the June Board meeting, staff will present detailed rate schedules based on the approved rate setting approach and final SCE rates as of June 1, 2025.
ATTACHMENTS
1. Appendix
2. FY 2025/26 Rate Setting Approach Presentation
Agenda Page 51
Board of Directors Item 6
APPENDIX
Projected Residential Customer Total Bill Comparisons – FY 2025/26 Rate Options* 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%
Medium Reserve
Option $189 $183 $187 $198 -3.0% -1.0% 5.0%
Strengthened Reserve
Option
(Executive
Committee
Recommendation)
$189 $185 $189 $200 -2.0% 0.0% 6.0%
*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.
Projected Small Business Customer Total Bill Comparisons – FY 2025/26 Rate Options* Scenario
Average Monthly Bill Comparison to SCE
SCE
base Lean Clean 100% Green Lean Clean 100% Green
March 2025 rates $261 $261 $264 $277 0.0% 1.0% 6.1%
Medium Reserve
Option $261 $254 $259 $274 -3.0% -1.0% 5.0%
Strengthened
Reserve Option $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 52
Board of Directors Item 6
La Cañada Flintridge, Lynwood and Port Hueneme
FY 25/26 Total Bill Comparisons for Sample Subset Rates* Rate
Schedule
Maximum Target* Medium Reserve Option Strengthened
Reserve Option
Lean Clean 100%
Green Lean Clean 100% Green Lean Clean 100% Green
TOU-GS-3-D 2.3% 3.4% 8.7% -3.0% -0.7% 7.7% -2.0% 0.3% 8.7% TOU-8-D-SEC 2.3% 3.4% 8.8% -2.6% 0.5% 9.1% -1.5% 1.6% 8.8% TOU-PA-2-D 0.3% 1.4% 6.9% -3.9% -2.2% 6.9% -2.8% -1.2% 6.9% TOU-PA-3-D 1.1% 2.2% 7.9% -3.3% -1.9% 7.8% -2.1% -0.9% 7.9% LS-1 19.2% 20.4% 26.7% 12.7% 16.7% 25.9% 14.1% 17.9% 26.7% *Maximum Phase 7 FY 2025/26 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. Comparisons are based on representative 2025 PCIA vintage rate schedules, average customer usage, and load profiles for each specified rate class. Individual customer comparisons will vary by specific rate schedule and customer usage.
Agenda Page 53
FY 2025/26
Rate Setting Approach
May 1, 2025
Agenda Page 54
Summary
Staff requests that the Board approve a rate setting approach that will guide the FY 2025/26 rates to be adopted by the Board at its June 5 meeting
Staff recommends:
o Reserve Percentage Target: Select a reserve target resulting in total bill comparison targets for residential and small business rates to reflect CPA’s projected Cost of Service (COS) and support competitiveness and financial goals (see options on slide 6 – Executive Committee recommends “Strengthened Reserve Option”) o Update subset rates: Update streetlighting, pumping and agriculture, and large commercial and industrial subset rates to reflect projected COS (see slide 8), based on the selected Reserve Option
o Subset rates for new communities: Set subset rates for member communities that begin service in October 2025 based on projected COS, provided that total bill comparisons do not exceed Board-approved July 2024 levels Rate and financial projections shown in this presentation are preliminary and subject to change
Agenda Page 55
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 56
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 based on the projected cost of service and informed by the following factors:
1. 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
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. 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
4. 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
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 this Board Meeting Agenda Page 57
FY 25/26 Rate Options
• Reserve and total bill
comparison targets
• Subset rates
• Rate approach for new
communities
5 Agenda Page 58
FY 2025/26 Reserve options with total bill
comparisons
Both options presented reduces rates for all residential and small/medium business customers and 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 2024/25
Year-end (Projected) 0.0% 1.0% 6.1% $131-140M 44-45% 150-152 FY 2025/26
Medium Reserve Option -3.0% -1.0% +5.0% $2-48M 45-50% 154-174 FY 2025/26
Strengthened Reserve Option
(Executive Committee
Recommendation)
-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 59
Total Bill Comparison Ranges – Residential
Projected Residential Customer Total Bill Comparisons – FY 2025/26 Rate Options* Total bill comparison targets 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 Total 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%
Medium Reserve Option $189 $183 $187 $198 -3.0% -1.0% 5.0% Strengthened Reserve Option
(Executive Committee
Recommendation)
$189 $185 $189 $200 -2.0% 0.0% 6.0%
Agenda Page 60
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 Medium Reserve Option Strengthened Reserve Option (Recommended)
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 61
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 in these new communities, total bill comparisons will be at or below July 2024 levels throughout FY 2025/26 (see Appendix) o As subset rates get more competitive, subset rates for the new communities may be adjusted downward per the rate setting approach by the Board in December o Staff recommend that subset rates for these communities be set based on projected COS, provided that total bill comparisons for each subset rate class do not exceed Board-approved July 2024 levels (see Appendix slide 17) 9 Agenda Page 62
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
Medium Reserve Option -3.0% -1.0% 5.0% -7.2% -5.3% +0.4% Strengthened Reserve Option -2.0% 0.0% 6.0% -6.2% -4.3% +1.4% Agenda Page 63
CPA’s Board typically sets rates once a year while SCE rates typically change 4 -5 times each year, resulting in fluctuating bill comparisons throughout the year CPA has maintained competitive rates and a strong value proposition over time 11 CPA competitiveness over time
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
1/1/2019 7/1/2019 1/1/2020 7/1/2020 1/1/2021 7/1/2021 1/1/2022 7/1/2022 1/1/2023 7/1/2023 1/1/2024 7/1/2024 1/1/2025 7/1/2025 $/kWh
Residential Electricity Rates 2019-2025*
SCE Generation -
Base Rate
CPA Generation -
Lean Power
CPA Generation -
100% Green Power
SCE Delivery (Equal
for All Customers)
*Annualized rates based on 2024
average monthly customer usage.
Generation rates inclusive of
PCIA, Competition Transition
Charge, and Generation
Municipal Surcharge. Delivery
rates inclusive of Wildfire Fund
Charge and Fixed Recovery
Actual Projected
Agenda Page 64
Reserve Options: Select a reserve option resulting in total bill comparison targets for residential and small business rates to reflect projected COS and to support competitiveness and financial goals Update subset rates: Update streetlighting, pumping and ag, and large commercial and industrial subset rates based on projected COS (as reflected in slide 8) and applying the selected Reserve Option Subset rates for new member communities: Set subset rates for member communities that begin service in October 2025 based on projected COS, provided that total bill comparisons for each subset rate class do not exceed Board-approved July 2024 levels
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
Medium Reserve Option -3.0% -1.0% +5.0% $2-48M 45-50% 154-174 Strengthened Reserve Option
(Executive Committee
Recommendation)
-2.0% 0% +6.0% $34-79M 47-53% 162-182
12 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, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.
Agenda Page 65
Action Requested
Today staff request that the Board approve a FY 2025/26 rate setting approach 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 66
Questions
Agenda Page 67
Appendix
Agenda Page 68
Total Bill Comparison Ranges –
Small Business
Projected Small Business Customer Total Bill Comparisons* – FY 2025/26 Rate Scenarios Scenario
Average Monthly Bill Comparison to SCE
SCE base Lean Clean 100% Green Lean Clean 100% Green
March 2025 rates $261 $261 $264 $277 0.0% 1.0% 6.1%
Medium Reserve Option $261 $254 $259 $274 -3.0% -1.0% 5.0% Strengthened Reserve Option $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 rate class, and projected SCE rates as of June 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.
Agenda Page 69
17 New Community Subset Rates
*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. Comparisons are based on representative 2025 PCIA vintage rate schedules, average customer usage, and load profiles for each specified rate class. Individual customer comparisons will vary by specific rate schedule and customer usage.
La Cañada Flintridge, Lynwood and Port Hueneme
FY 25/26 Total Bill Comparisons for Sample Subset Rates* Rate Schedule
Maximum Target* Medium Reserve Option Strengthened
Reserve Option
Lean Clean 100% Green Lean Clean 100% Green Lean Clean 100% Green TOU-GS-3-D 2.3% 3.4% 8.7% -3.0% -0.7% 7.7% -2.0% 0.3% 8.7% TOU-8-D-SEC 2.3% 3.4% 8.8% -2.6% 0.5% 9.1% -1.5% 1.6% 8.8% TOU-PA-2-D 0.3% 1.4% 6.9% -3.9% -2.2% 6.9% -2.8% -1.2% 6.9% TOU-PA-3-D 1.1% 2.2% 7.9% -3.3% -1.9% 7.8% -2.1% -0.9% 7.9% LS-1 19.2% 20.4% 26.7% 12.7% 16.7% 25.9% 14.1% 17.9% 26.7% Agenda Page 70
Staff Report – Agenda Item 7
To: Board of Directors
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: May 1, 2025
Staff will provide a presentation on the item.
ATTACHMENTS
1. FY 2025/26 Budget Priorities and Operating Expense Highlights Presentation
Agenda Page 71
FY 2025/26 Budget Priorities and Operating
Expense Highlights
May 1, 2025
Agenda Page 72
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
2 Agenda Page 73
Clean Energy Portfolio Delivery and
Competitiveness
1. Approach or reach maximum reserve target
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
benefits, and enhance grid resiliency 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
Agenda Page 74
4 CPA projects ~$1.2 billion of energy costs for FY2025/26 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 continuing to invest in:
1. Customer programs that save customers money and reduce peak load
2. Systems and people that manage risk
3. Innovative business and policy measures that can affordably and resiliently fulfill CPA’s decarbonization mission
Energy and Operating Expense Context
Agenda Page 75
FY 2025/26 Operating Expense Increase Drivers
Drivers of increased operating expenses:
• Staffing (+16%) – Approximately 60% of the expected increase is due next year’s COLA and other retention efforts. Staffing budget growth rate continues to decelerate (see slide 6 for details) • Customer Programs (+9%) – Increased investment in existing programs focused on Power Share, EV SmartCharge, and Energy Advisor combined with more conservative spend rate projections (see slides 7-8 for details)
• Coms & Marketing (+53%) – Approximately 80% of expected increase is to support direct customer program marketing and ancillary investments in website enhancements, market research, and CBO-led outreach (see slide 11 for details)
• All other operating expense line items collectively increase by $2.4 million (9%) 5 A B C D E F
FY 2024/25
Budget FY 2025/26 Budget
Budget
Difference ($)
Budget
Difference (%) % of Revenue
OPERATING EXPENSES
Staffing 24,076,000 27,950,000 3,874,000 16% 2.0%
Communications and marketing services 3,982,000 6,079,000 2,097,000 53% 0.4% Customer programs 13,208,000 14,425,000 1,217,000 9% 1.1% Other Operating Expenses 26,243,000 28,686,804 2,443,804 9% 2.1% TOTAL OPERATING EXPENSES 67,509,000 77,140,804 9,631,804 14% 5.6% Agenda Page 76
Initial Staffing Budget Projection
6 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 Growth Drivers Staffing Budget Growth is Decelerating CPA Staffing Budget
Budget Budget Budget Budget
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
13,976,086 20,072,218 24,076,405 27,950,407
41% 44% 20% 16%
YOY % Change
Agenda Page 77
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 decreased 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 timeframes have been extended due to expected velocity of customer and member agency signups
Investing in Existing Programs
Power Share (+$1.4M)
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
FY2025/-26
Increase driven by additional
funding capacity from CPUC
combined with completion of
Community Solar projects –
Increase is funded with state
support
Expanding enrollment to 10,450
(from 6,500)
EV SmartCharge (+$1.1M) Energy Advisor (+$300K)
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
Agenda Page 78
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
Agenda Page 79
Communications Driven by Program Marketing
Communications budget expected to increase by 53%, or $2.1 million 48% of this growth supports direct spending on program marketing. 31% of this growth supports customer program acquisition through website enhancements, market research and CBO-led outreach efforts Core branding efforts have improved CPA brand recognition and awareness. Proposed branding spend in FY25/26 is relatively flat year over year.
Proposed turnkey Mobile Education Center
• Will provide heighten visibility of CPA in our communities through in person interactions that elevate the brand and strengthen understanding of programs and services such as Energy Team and provide a physical touchpoint for customers to learn and ask questions in real time.
• Approximately 50 unique events per year projected to cost $640k annually spread over three fiscal years • Performance metrics include a count of visitors and engagements, QR codes to track website visits originating from the education center, and signups for programs attributed to education center experience. • See next slides for examples
9 Agenda Page 80
Mobile Education Unit Examples
10 Agenda Page 81
Communications Budget – YOY Comparison
Agenda Page 82
Operating expenses are 6% of total costs, of which 20% are fixed by regulatory, contractual, or policy obligations
Operating expenses are projected to increase by $9.29 million or 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 $2.4 million (9%)
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 customer’s rising electricity bills by developing and delivering customer programs supported by effective marketing and communications 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 CPA continues to compare favorably with other CCAs on operating and staffing expenses (see slide 14)
12 Summary
Agenda Page 83
Questions?
Agenda Page 84
Select CCA Metrics and Comparisons
CPA’s metrics for operating expenses and staffing costs compare favorably with industry averages 14 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%
Agenda Page 85
15 Agenda Page 86
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
Agenda Page 87
Management Report
To: Board of Directors
Subject: Management Report
Date: May 1, 2025
Board Retreat Reminder
CPA’s annual Board Retreat will take place on June 13, 2025 from 8:30am to 2pm in the City View Penthouse of South Park Center, 1150 S Olive St, Los Angeles, California, 90015. The agenda will include follow-up on Board priorities discussed at last year’s retreat, long-term renewable energy supply targets, exploration of new service opportunities, and a guest speaker or two. All Board Directors, including Alternates, are welcome to attend. Members of CPA’s Community Advisory Committee have also been invited. Study materials and more logistical information will be distributed closer to the meeting date. Please RSVP to [email protected] by May 22nd.
Instant AC Savings Marketing Launch
In May, and in preparation for summer, CPA will significantly ramp up marketing efforts for our Instant AC Savings program, which provides $300 point-of-sale discounts at Home Depot and Lowes on high-efficiency window air conditioning units for low-income customers. A new program website (CleanPowerAlliance.org/instantacsavings) will debut on April 30 and paid media/direct mail will launch in mid-May. CPA will also have a branded “cool-off” tent at the LA County Fair over the May 23-25 weekend to market the program.
Board members and member agencies are encouraged to promote this program. Fact sheets will be available on the Member Agency/Board Portal on April 30, with social media assets uploaded in mid-May. Please let your Government Affairs representative know if you or city/county staff need assistance accessing or navigating the portal.
Agenda Page 88
Board of Directors Management Report
Resource Adequacy Compliance
The Resource Adequacy (RA) program ensures grid reliability by requiring every Load Serving Entity (LSE) in California to procure enough energy capacity for each month, plus a reserve margin. As of April 2025, CPA has procured enough RA capacity to meet all of its monthly RA obligations for the remainder of the calendar year. Meeting all monthly RA obligations for the calendar year before entering the summer months is noteworthy in that it avoids making RA purchases near the monthly compliance deadline (six weeks before the beginning of each calendar month) when prices can spike. Additionally, 2025 is the first year LSEs were required to procure RA under the new Slice of Day framework, wherein procurement targets must be met for all 24 hours in the day, rather than only the peak hour as was required under the prior framework. CPA continues its strong track record in RA compliance, having met every month-ahead RA obligation since CPA began serving load in 2018.
Monthly Financial Performance
CPA’s net position in February increased by $10.0 million, 18% less than the budgeted increase of $12.1 million. Cooler than normal temperatures in February contributed to lower than budgeted revenue and energy costs. For the year-to-date, CPA has recorded an increase to the net position of $67.4 million, compared to a budget net decrease of $3.2 million. The better-than-expected results for the year are expected to moderate for the remainder of the fiscal year, as a result of the interim rate decrease approved by the Board in February and that was implemented on March 1. Even with the rate decrease, CPA remains on track to meet its fiscal objectives for the year. The monthly financial dashboard for February is provided as Attachment 1.
Customer Participation Rate and Opt Actions
As of April 25, 2025, CPA’s overall participation rate was 92.9%, up slightly from the
92.8% participation rate recorded in the previous month. CPA had 1,039,199 active customers, down 2,918 customers compared to the end of March. The decline in active customers is largely due to the homes and businesses of CPA customers being destroyed by the Eaton and Palisades fires; not all losses of customer accounts have been processed yet by SCE, so active customer counts are expected to continue to fluctuate
Agenda Page 89
Board of Directors Management Report
over the next several months. Opt-outs in April – 266 – were lower than in February, which posted 747 opt-outs. New accounts (“move-ins”) were lower than closed accounts (“move-outs”) by 3,068 customers in the same time period, also reflecting accounts closed due to the fires. Participation rates and active accounts by member agency are provided in Attachment 2 of this report.
Customer Service Center Performance
Incoming calls to CPA’s Customer Service Center declined significantly in April compared to the previous month, commensurate with lower overall electricity bills as a result of CPA’s March rate reduction and the posting of the California Climate Credit. Through April 22, CPA received 1807 calls, compared to 3,091 in February. Call center performance improved, with 98% of calls answered within 45 seconds, compared to 92% the previous month. Average call center wait time was 4 seconds, compared to 14 seconds in March.
Contracts and Amendments Executed Under the CEO Authority A list of amendments to, and terminations of, Long-Term Power Purchase Agreements and Energy Storage Agreements executed under the CEO’s signing authority since July 2024 is provided in Attachment 3. A list of non-energy contracts executed under the CEO’s signing authority is provided in Attachment 4. This list includes all open contracts as well as all contracts, open or completed, executed in the past 12 months.
ATTACHMENTS
1. Monthly Financial Dashboard, February 2025
2. Participation Rates by Member Agency
3. Long Term PPA/ESA Amendments Executed under CEO’s Authority
4. Non-Energy Contracts Executed under CEO’s Authority
Agenda Page 90
CUSTOMERS
Summary of Financial Results
Definitions:
Accounts: Active Accounts represents customer accounts of active customers served by CPA per Calpine Invoice Participation Rate %: Participation Rate represents active accounts divided by eligible CPA accounts YTD Sales Volume: Year-to-date sales volume represents the amount of energy (in gigawatt hours) sold to retail customers Revenues: Retail energy sales less allowance for doubtful accounts Cost of energy: Cost of energy includes direct costs incurred to serve CPA’s load Operating expenses: Operating expenditures include general, administrative, consulting, payroll, and other costs required to fund operations Net operating income represents the difference between revenues and expenditures before interest income and expense, and capital expenditures
Non-Operating Income: interest income arising from deposits and investments net of borrowing costs and fees Investments: liquid and high-quality securities with maturities of 91 days or more Cash and Cash Equivalents: Includes bank deposits and high quality and liquid securities with maturities of less than 90 days Year to date (YTD): Represents the fiscal period beginning July 1, 2024 YTD
February
2025
Financial Dashboard
Note: Numbers may not sum up due to rounding.
Active Accounts
1,042,909
Participation Rate
92.9%
YTD Sales Volume
7,488 GWh
Feb Volume
744 GWh
Agr/Oth
2% Com-Lg
18%
Com-Sm
29%
Res
51%
Feb Year-to-Date
in $000,000's Actual Budget Variance % Actual Budget Variance % Energy Revenues 98.0 109.7 -11.7 -11% 1072.3 1106.8 -34.5 -3% Cost of Energy 85.1 92.5 -7.3 -8% 987.5 1072.5 -85.1 -8% Net Energy Revenue 12.9 17.2 -4.3 -25% 84.8 34.3 50.5 147% Operating Expenses 4.4 5.8 -1.4 -24% 31.5 43.9 -12.4 -28% Operating Income 8.5 11.5 -3.0 -26% 53.3 -9.6 62.9
Non-Operating Income 1.5 0.6 0.8 130% 14.1 6.4 7.8 122% Change in Net Position 10.0 12.1 -2.1 -18% 67.4 -3.2 70.7 In February 2025 CPA’s net position increased by $10 million, $2.1 million or 18% less than the budgeted increase in net position of $12.1 million. February 2025 results were negatively impacted by cooler than normal temperatures and lower energy consumption and revenue than budgeted.
For the year-to-date, CPA’s net position increased by $67.4 million, $70.7 million more than the budgeted reduction in net position of $3.2 million. YTD revenues were $1072.3 million, $34.5 million or 3% less than budgeted revenues primarily due to generally cooler weather in the second quarter and lower energy consumption than budgeted. YTD energy cost was $987.5 million, $85.1 million or 8% less than budget primarily due to the non-utilization of contingencies and lower than budgeted renewable energy and capacity costs. Absent contingencies, energy costs were $24.1 million or
2.4% less than budget. Operating expenses were $31.5 million, $12.4 million or 28% less than budget primarily due to lower than budgeted spending on customer programs, communications, and administrative expenses. Non-operating income, primarily made up of interest income, was $14.1 million, $7.8 million or 122% higher than budget.
As of February 28th, 2025, CPA had unrestricted cash, cash equivalents, and investments of $487.2 million, and $154.4 million available in its bank line of credit representing 174 Days Liquidity on Hand. CPA is financially sound and in compliance with its bank and other credit covenants.
Agenda Page 91
Jurisdiction Preferred Energy Option Active Accounts Participation % Lean % Clean % 100% Green % AGOURA HILLS 100% Green 8,007
ALHAMBRA 100% Green 34,320
ARCADIA Lean 22,702
BEVERLY HILLS 100% Green 18,633
CALABASAS 100% Green 9,611
CAMARILLO 100% Green 28,850
CARSON Clean 29,451
CLAREMONT 100% Green 12,708
CULVER CITY 100% Green 19,335
DOWNEY Clean 36,891
HAWAIIAN GARDENS Clean 3,645
HAWTHORNE 100% Green 28,532
HERMOSA BEACH 100% Green 9,930
LOS ANGELES COUNTY 100% Green 293,883
MALIBU 100% Green 6,375
MANHATTAN BEACH 100% Green 15,203
MONROVIA 100% Green 16,132
MOORPARK Clean 11,393
OJAI 100% Green 3,492
OXNARD 100% Green 55,779
PARAMOUNT Clean 15,797
REDONDO BEACH 100% Green 33,243
ROLLING HILLS ESTATES 100% Green 3,517
SANTA MONICA 100% Green 55,529
SANTA PAULA 100% Green 9,353
SIERRA MADRE 100% Green 4,937
SIMI VALLEY Lean 43,450
SOUTH PASADENA 100% Green 11,605
TEMPLE CITY Lean 12,706
THOUSAND OAKS 100% Green 44,385
VENTURA 100% Green 44,778
VENTURA COUNTY 100% Green 32,898
WEST HOLLYWOOD 100% Green 26,718
WESTLAKE VILLAGE Lean 3,719
WHITTIER Clean 31,692
TOTAL
89.3% 3.7% 0.4% 95.9%
95.4% 2.1% 0.1% 97.8%
95.2% 99.8% 0.1% 0.2%
97.4% 2.3% 0.1% 97.6%
93.1% 3.4% 0.3% 96.2%
89.8% 2.2% 0.1% 97.7%
95.5% 1.7% 96.0% 2.3%
91.0% 3.4% 0.3% 96.3%
95.0% 4.2% 1.0% 94.7%
94.9% 1.7% 97.1% 1.2%
95.2% 1.5% 96.4% 2.1%
97.1% 0.9% 0.1% 99.0%
92.4% 2.9% 0.6% 96.5%
94.4% 2.4% 30.9% 66.7%
94.3% 3.3% 0.4% 96.3%
94.9% 3.3% 0.4% 96.3%
90.7% 4.3% 0.5% 95.2%
85.5% 3.3% 96.1% 0.6%
89.0% 6.1% 1.2% 92.7%
92.5% 4.0% 0.5% 95.5%
96.6% 0.3% 94.5% 5.2%
95.8% 2.6% 0.1% 97.3%
91.8% 8.1% 1.5% 90.4%
94.7% 3.5% 0.6% 95.9%
90.1% 2.5% 0.3% 97.2%
91.9% 5.8% 1.5% 92.7%
89.2% 99.6% 0.1% 0.2%
94.5% 4.0% 0.7% 95.4%
95.7% 99.8% 0.1% 0.2%
83.4% 8.1% 1.5% 90.4%
89.1% 4.9% 1.1% 93.9%
84.6% 6.9% 1.1% 92.0%
97.0% 2.6% 0.3% 97.1%
88.0% 99.5% 0.1% 0.5%
93.9% 2.0% 97.2% 0.8%
14.5% 17.8% 67.7%
CUSTOMER STATUS REPORT
PARTICIPATION BY CITY AND COUNTY
April 24, 2025
ACTIVE ACCOUNTS BY ENERGY PRODUCT
Energy Option Active Accounts Percentage
100% Green Power
Clean Power
Lean Power
TOTAL 100.0%
10.8%
21.0%
68.2%
1,039,199
112,522
218,207
708,470
1,039,199 92.9% 91.7% 94.1% 92.8%
Agenda Page 92
Project Purpose Month Notes
Cape Station 30
MW and 18 MW
Letter Agreement to the Power Purchase Agreements to codify insurance amounts in Section 17.1. The Letter Agreement applies to both the 30 MW and incremental 18 MW Cape Station agreements.
April
2025
Rexford
Amendment to the Power Purchase Agreement to update the Ultimate Parent definition after a Change in Control
February
2025
Drifter
Amendment to Energy Storage Agreement to extend the termination deadline while parties identify mutually beneficial solutions January
2025
Desert Sands II
Amendment to a Letter Agreement to the Energy Storage Agreement to extend the termination deadline while parties identify mutually beneficial solutions
December
2024
Desert Quartzite
Letter Agreement to Power Purchase Agreement to document grid charging cessation procedures
November
2024
Drifter
Amendment to Energy Storage Agreement to extend the termination deadline while parties identify mutually beneficial solutions October
2024
Desert Sands I
Amendment to Power Purchase Agreement to facilitate the transfer of the site to a backup facility contemplated in the contract, Key Energy Storage, and allow for a delay in COD in return for a price decrease September
2024
Wilmington 2
Amendment to Power Purchase Agreement to allow for additional payments of liquidated damages to extend the COD
September
2024
Dominguez
Amendment to Power Purchase Agreement to allow for additional payments of liquidated damages to extend the COD
September
2024
Desert Sands II
Amendment to a Letter Agreement to the Energy Storage Agreement to extend the termination deadline while parties identify mutually beneficial solutions
August
2024
Workman Mill
Termination of the Power Purchase Agreement for failure of Seller to meet contractual deadlines
July 2024
Dinuba Biomass
Termination of the Power Purchase Agreement for failure of Seller to meet contractual deadlines
July 2024
Drifter
Amendment to Energy Storage Agreement to extend the termination deadline while parties identify mutually beneficial solutions July 2024
Previous 12 Months
Long-Term Energy Contracts Administrative Amendments, Letter Agreements and Terminations Executed Under Chief Executive Officer's Authority
Agenda Page 93
Vendor Purpose Month NTE Amount Status Notes
EPRI Research Participation Agreement Apr-25 $54,000 Active USGBC California
Workforce development grant for
wildfire recovery resources Apr-25 $50,000 Active
IFUS ICE Futures Platform access Apr-25 $0 Active
Redhill Group Customer Researh Services Apr-25 $34,589 Active LinkedIn Recruiting Platform Subscription Feb-25 $10,250 Active Raimi & Associates
Inglewood Oil Field energy storage
feasibility study Feb-25 $118,713 Active
Abbot, Stringham & Lynch Green-e Energy Program reporting Feb-25 $24,000 Active Wicked Bionic
Creative services for Customer
Programs Jan-25 $225,000 Active
Omni Government Relations Renewal to lobbying services
agreement
Jan-25 $102,492 Active
Pinnacle Advocacy Renewal to lobbying services
agreement
Jan-25 $76,652 Active
Wrike Project management software Jan-25 $20,280 Active Verve Cloud Internet service Jan-25 $20,988 Active
TRC Amendment to PSA for reach code
technical consulting
Dec-24 $36,928 Active
Wellable Employee wellness platform Dec-24 $13,075 Active Crown Castle Fiber LLC
Office dedicated internet access
service
Nov-24 $18,600 Active
Alter Agents CPA Brand Tracker Nov-24 $44,000 Active
New Block Digital Agency Website QA services Nov-24 $25,000 Active Language Line Translation services Nov-24 $42,000 Active Green Translations Translation services Nov-24 $42,000 Active Intelligence Press Natural gas data subscription Nov-24 $7,400 Active Cindy Levine Group Amendment to PSA for management
coaching services Nov-24 $12,500 Active
Downey Brand LLP Legal Services (CPUC mediation) Nov-24 $55,000 Active Ross Associates Management coaching services Oct-24 $16,000 Active Perkins Coie Amendment to Legal Services
Agreement for RFO support Oct-24 $70,000 Active
Actium LLP Legal services for general liability Oct-24 $55,000 Active Windstream Services, LLC Office telephone service Sep-24 $12,924 Active Thorn Run Partners LLC Federal lobbying services Sep-24 $125,000 Active Sigman Computing Analytics platform Sep-24 $30,800 Active JustFOIA PRA request management software Sep-24 $9,835 Active Salesforce Additional license for CRM
subscritpion Sep-24 $3,733 Active
Helpmates HR temporary staffing services Aug-24 $24,000 Active Workable HR recruitiung paltform subscrption Aug-24 $14,028 Active DataCamp Training subscription for Data &
Systems team Aug-24 $1,200 Active
TRC Amendment to PSA for reach code
technical consulting Aug-24 $43,000 Active
Salesforce Stakeholder relationship management
application subscription Aug-24 $15,300 Active Renewal
Abbott, Stringham & Lynch Data security complaince services Jul-24 $18,500 Active Mellady Direct Marketing Print and mailing services Jul-24 $0 Active PSA end date extension only
to contract approved by the
Board of Directors on 9/3/21
ProductOfLA Interactive renewable energy model Jul-24 $30,000 Active Non-Energy Contracts Executed Under Chief Executive Officer Authority Rolling 12 months. Open contracts shown in bold.
Agenda Page 94
LinkedIn LinkedIn Learning subscription Jul-24 $16,150 Active Hall Energy Law PC Energy procurement counsel Jul-24 $125,000 Active Renewal Burke, Williams, Sorenson, LLP
Legal Services Agreement (Brown Act,
public entity governance issues, and
other legal services)
Jul-24 $100,000 Active Renewal
Elite Edge Financial reporting services Jul-24 $93,600 Active Renewal SAESHE, Inc. Street teams support services Jun-24 $60,000 Active Snowflake Data cloud services Jun-24 $25,000 Active
Lazar Translating & Interpreting Translation services Jun-24 $50,000 Active
Agenda Page 95