MINUTES
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, May 1, 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
Wyndham Midtown
205 East 45th Street
New York, NY 10017
JW Marriot Desert Springs at
SCAG Conference
Director 1 Conference Room
74-855 Country Club Drive
Palm Desert, CA 92260
CALL TO ORDER & ROLL CALL
Chair Klein Lopez called the meeting to order at 2:00 p.m. and Gabby Monzon, Clerk of the Board, conducted roll call.
PLEDGE OF ALLEGIANCE
Director McMorrin 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 Tony Trembley Alternate Remote
7 Carson Cedric Hicks Director Remote
8 Claremont Corey Calaycay Director Remote
9 Culver City Yasmine-Imani
McMorrin Director Present
10 Downey Absent
11 Hawaiian Gardens Ramie L. Torres Alternate Remote
12 Hawthorne Alex Monteiro Director Remote
13 Hermosa Beach Doug Krauss Alternate Remote
14 La Cañada Flintridge Stephanie Fossan Director Present 15 Los Angeles County Rita Kampalath Alternate Present
16 Lynwood Juan Muñoz-Guevara Director Remote
17 Malibu Marianne Riggins Director Remote
18 Manhattan Beach David Lesser Director Remote
19 Monrovia Edward Belden Director Present
20 Moorpark Chris Barrett Director Remote
21 Ojai Michelle Ellison Alternate Remote
22 Oxnard Bert Perello Director Remote
23 Paramount Michelle Muller Alternate Remote
24 Port Hueneme Laura Hernandez Director Remote
25 Redondo Beach Absent
26 Rolling Hills Estates Steve Zuckerman Alternate Remote 27 Santa Monica Gleam Davis Alternate Present
28 Santa Paula Pedro Chavez Alternate Remote
29 Sierra Madre Robert Parkhurst Director Present
30 Simi Valley Rocky Rhodes Director Remote
31 South Pasadena Omari Ferguson Director Remote
32 Temple City Ed Chen Director Remote
33 Thousand Oaks David Newman Director Present
34 City of Ventura Absent
35 Ventura County Vianey Lopez Vice Chair Remote
36 West Hollywood John Erickson Director Remote
37 Westlake Village Kristopher Galvez Alternate Remote
38 Whittier Mary Ann Pacheco Director Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no 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 Motion: Director Rhodes, Simi Valley
Second: Director Gold, Beverly Hills
Vote: The consent agenda was approved by roll call vote.
REGULAR AGENDA
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 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 Karen Schmidt, Senior Director, Rates and Strategy, presented rate options for Board consideration that based on reserve targets 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. Both options reduce rates for all residential customers and provide competitiveness while enabling CPA to approach or meet its maximum reserve target in the coming fiscal year. CPA’s competitive position will improve in October 2025, 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, which combined with market movements, could increase PCIA rates and decrease SCE generation rates beginning in January 2026. These changes could result in bill increases, potentially triggering consideration of an interim rate adjustment.
Chair Klein Lopez noted that the Executive Committee unanimously supported the Strengthened Reserve Option as it would provide rate stability and flexibility.
Director Gold commented that the Medium Reserve Option could possibly generate only $2 million for the reserves, and the Strengthened option would require a small increase for ratepayers. Staff clarified for Director Newman that for new communities, CPA’s rates will be indexed to changes in SCE’s rates so bill comparison targets are maintained; the reserve target range is set at 30-50%, with a maximum limit of 60%. Director Fossan asked how rates would change for the new communities as SCE’s rates fluctuate, and staff responded that CPA would adjust rates to avoid rate volatility for new customers at the beginning of service.
Director Rhodes asked about the wide range of contributions to the reserves, and staff pointed to CPA’s roughly $1.2 billion in expenses, stating that even small changes can have significant outcomes; the energy market’s unpredictability can create impactful deviations. In response to Director Lesser’s question about data on customer opt-downs, staff responded that most residential customers will choose one energy product and stick with it. Medium and large business customers are more likely to change rates but not opt-out when there is a lower cost option.
Motion: Director Calaycay, Claremont
Second: Director Gold, Beverly Hills
Vote: The Board approved Option 2 by a roll call vote.
7. Receive Presentation on FY 2025/26 Budget Priorities and Operating Expense Highlights
David McNeil, Chief Financial Officer, presented CPA’s organizational priorities, discussed the context of energy and operating expenses, noting that CPA’s $1.2 billion in energy costs represent 94% of total costs. Mr. McNeil explained that short-term energy, resource adequacy, and renewable energy costs have fallen, and staff is watching for 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. Overall, staffing cost increases are decelerating as CPA matures, and staffing will grow primarily in professional and technical support. CPA can help mitigate rising customer electricity bills by developing and delivering effective customer programs that save customers money and reduce peak load and continue investing in systems and people that manage risk. CPA continues to compare favorably with other CCAs on operating and staffing expenses. Mr. McNeil described the three primary drivers of the increase in operating expenses: staffing, customer programs, and communications and marketing. Mr. McNeil provided a breakdown of all customer program expenditures. Almost half of the communications budget will directly support program marketing. Director Zuckerman added that as of February 2025, CPA has cash and investments of nearly $500 million and approximately $150 million available in its bank credit line, representing 154 days Liquidity on Hand.
Staff clarified for Director Parkhurst that unspent funds in last year’s budget were allocated to customer programs and not communications. Spending in communication slows down during the winter holiday time and during election season when advertising gets expensive. Director Gold commented that TV advertising he has seen focuses on CPA as an organization and not on customer programs specifically. Staff explained that CPA has relaunched its brand campaign, which aims to create trust with customers who will hopefully respond to more targeted program-focused advertising later. In response to Director Perello’s questions about how the mobile unit would be used, staff stated that community events are great opportunities. Director Erickson suggested outreach at Pride festivals, and staff welcomed the idea, noting that all member agencies will have the opportunity to suggest events in their communities.
COMMITTEE CHAIR UPDATES
Director Parkhurst, Chair of the Energy Committee, reported on the status of current Requests for Offers (RFOs), including an RFO seeking innovative technology.
MANAGEMENT REPORT
Ted Bardacke, Chief Executive Officer, reported that CPA has met compliance for all Resource Adequacy (RA) commitments to the State several months early; marketing has begun for the Instant AC Savings program by which low-income customers can purchase an energy-efficient air conditioner using an instant $300 rebate. Finally, Mr. Bardacke encouraged Directors and Alternates to attend the Board Retreat on June 13, 2025.
Director Perello asked about CPA’s lobbyists, and whether staff knows why customers opt-out of CPA. Staff explained that one firm is a federal lobbyist whose effectiveness is measured by earmarks bringing money back to CPA’s communities and by policy that benefits CPA’s mission and customers. Two other lobbyists focus on California legislation, work as a team and have different strengths. Regarding why customers leave CPA, staff stated that when asked to provide a reason for opting out, customers usually cite objection to automatic enrollment in a CCA and distrust in government entities. Chair Klein Lopez expressed enthusiasm for the Instant AC Savings program rebate. She also urged participation in the Board Retreat as the one time a year all the Directors can get together in person. Director Belden suggested easily accessible links for customers to sign up for the program.
BOARD MEMBER COMMENTS
Director Erickson suggested that CPA track the proposed Polluters Pay Climate Superfund Act, specifically which entities would be receiving allocations from the fund.
REPORT FROM THE CHAIR
None.
ADJOURN
Chair Klein Lopez adjourned the meeting at 3:34 p.m.