Legislative & Regulatory Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Wednesday, June 25, 2025
10:00am
Visit CPA’s YouTube Channel to view a Live Stream of the Meeting www.youtube.com/@CPApublicmeetings
*There may be a streaming delay of up to 90 seconds. This is a view-only live stream.
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting at the following locations:
City of West Hollywood
3rd Floor City Manager’s Conference Room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
LA County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
PUBLIC COMMENT: Members of the public may submit their comments by one of the following options:
• Email Public Comment: Members of the public are encouraged to submit written comments on any agenda item to [email protected] up to four hours before the meeting. Written public comments will be announced at the meeting and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting. • Provide Public Comment During the Meeting: The General Public Comment item is reserved for persons wishing to address the Committee on any Clean Power Alliance-related matters not on today’s agenda. Public comments on matters on today’s Consent Agenda and Regular Agenda shall be heard at the time the matter is called. Comments on items on the Consent Agenda are consolidated into one public comment period. Members of the public who wish to address the Committee at CPA’s Office are requested to complete a comment card and provide it to staff. If you are attending from a remote location, please identify yourself to a CPA representative when your item is called. Each speaker is limited to two (2) minutes (in whole-minute increments) per agenda item with a cumulative total of five 5 minutes to be allocated between the General Public Comment, the entire Consent Agenda, or individual items in the Regular Agenda. Please refer to Policy No. 8 – Public Comment for additional information.
Agenda Page 1
NAVIGATING OUR AGENDA PACKETS
The meeting agenda packets are bookmarked PDFs, which display a list of agenda items to the left of the page and allow you to click to view specific items within the packet. If viewing in your browser, click the "document outline" button in the upper left corner of the screen. If the PDF is downloaded, the bookmark panel (ribbon icon) appears on the left side of the screen.
ACCESSIBILITY: Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least two (2) working days before the meeting at [email protected] or (213) 713- 5995. Notification in advance of the meeting, while not required, will enable us to make reasonable arrangements to ensure accessibility to this meeting and the materials related to it.
CALL TO ORDER AND ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the March 26, 2025, Legislative & Regulatory Committee Meeting
REGULAR AGENDA
2. Receive a Presentation on the Power Charge Indifference Adjustment Reform Proceeding
3. Oral Update on 2025 Legislative Activities and Seek Committee Guidance on Priorities for the Rest of the Legislative Session
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING ON JULY 23, 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. Those documents are available for inspection at CPA Offices, 801 S. Grand Ave, Suite 400, Los Angeles, CA 90017 or online at www.cleanpoweralliance.org/agendas.
Agenda Page 2
Staff Report – Agenda Item 1
To: Legislative & Regulatory Committee
Subject: Approve Minutes from the March 26, 2025, Legislative & Regulatory Committee Meeting
Date: June 25, 2025
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
MINUTES
Legislative & Regulatory Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, March 26, 2025, 10:00 a.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:
Carson City Hall
City Manager’s Conference Room
701 East Carson Street
Carson, CA 90745
Clean Power Alliance Office
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
LA County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
West Hollywood City Hall
3 rd Floor City Manager’s Conference Room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
CALL TO ORDER & ROLL CALL
Chair Hicks called the meeting to order at 10:00 a.m. and Annie Mendoza, Deputy Board Clerk, conducted roll call.
ROLL CALL
Carson Cedric Hicks Committee Chair Remote
Los Angeles
County Absent
Manhattan Beach Absent
Santa Monica Gleam Davis Committee Member Present
West Hollywood John Erickson Committee Member Remote
All votes are unanimous, unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the October 30, 2024, Legislative Committee Meeting Motion: Committee Member Erickson, West Hollywood
Second: Committee Member Davis, Santa Monica
Vote: The consent agenda was approved by a roll call vote.
Legislative & Regulatory Committee Item 1
Agenda Page 4
REGULAR AGENDA
2. Provide Feedback on the Greenhouse Gas Reduction Fund and Affordability Options
Gina Goodhill, Sr. Director of Government Affairs, described the state’s cap-and-trade program and the California Climate Credit. Cap-and-trade creates incentives for utilities, industries, and other facilities to reduce their greenhouse gas (GHG) emissions and invest in clean energy. The Greenhouse Gas Reduction Fund program is up for reauthorization and modifications are being considered to decrease electricity costs. The CPUC identified several options to reallocate the Climate Credit to increase affordability for specific customer groups. CPA and other CCAs are proposing that on-bill credits for customers increase during the summer months when bills are higher.
Chair Hicks expressed support for transferring the credits to summer bills and wondered if there are sufficient funds available to implement short- and long-term affordability strategies. Customers may not take advantage of incentives or energy-efficiency rebates if power costs are high. Committee Member Davis asked whether the increased use of coal would impact the cost of renewable energy. Staff responded that electricity costs are likely to rise and CPA is advocating for a bill to examine the expansion of the regional energy market. The goal would be to stabilize the price increases and slow their pace. CPA’s current supply costs won’t be affected because of long-term contracts. The Committee expressed support for summer bill credits while also ensuring the industry works towards affordability measures related to transmission systems. Committee Member Davis commented that Southern California Edison is likely to be sued over the Eaton Fire, which may increase infrastructure costs that may be passed on to the ratepayer. Staff noted that legislation may be introduced to create public financing for transmission.
3. Receive a Presentation on the Power Charge Indifference Adjustment (PCIA) Reform Proceeding Update
CC Song, Senior Director of Regulatory Affairs, presented the PCIA fee and the Energy Resource Recovery Account (ERRA), as well as updates on the PCIA and ERRA reform proceeding, and a review of CPA staff engagement. The Commission’s near-term objective is to adjust the Resource Adequacy (RA) Market Price Benchmarks (MPB), which it believes overstates RA value. In the longer term, it seeks to broadly re-evaluate the PCIA in light of changing market conditions. Ms. Song described the two tracks the CPUC is following, Track 1 and Track 2, reflecting short- and long-term changes. CPA is adopting CalCCA’s position, which opposes incorporating long-term transactions in MPBs, as they should reflect recent market prices. CalCCA conditionally endorses exclusion of swap and sleeve transactions to the extent such transactions can be objectively and transparently identified. It also supports using monthly values for overall RA MPB to reflect seasonal changes in RA prices. Ms. Song presented CPA’s goals in ensuring an equitable outcome for all customers, bundled and unbundled. Staff will focus on any long-term alterations to the PCIA framework. A proposed decision is expected in May; Track 1 changes will affect rates starting in January 2026.
Chair Hicks asked for the breakdown of the number of bundled and unbundled customers. Staff stated that for SCE, approximately 70% are bundled and 30% are unbundled, including Direct Access. Statewide, the numbers are about half and half. Mr. Bardacke commented that Track 2 changes may happen two years from Legislative & Regulatory Committee Item 1
Agenda Page 5
now, including the possibility of eliminating the PCIA altogether. CPA and other CCAs are urging a fair outcome for all customers.
COMMITTEE MEMBER COMMENTS
Chair Hicks inquired about SB 252 and AB 306. Regarding the former, which would create CEQA exemptions related to undergrounding utilities, staff is tracking the bill but has not yet taken a position. Staff is also tracking AB 306, which relates to state building codes, in particular reach codes, and their impacts on housing. CPA and the League of Cities are concerned about maintaining local control. AB 306 is moving out of the Assembly to the Senate for consideration. Committee Member Davis commented that reach codes are not an obstacle to building new housing.
ADJOURN
Chair Hicks adjourned the meeting at 10:58 a.m.
Legislative & Regulatory Committee Item 1
Agenda Page 6
Staff Report – Agenda Item 2
To: Legislative & Regulatory Committee
From: CC Song, Senior Director, Regulatory Affairs
Reviewed by: Matthew Langer, Chief Operating Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Power Charge Indifference Adjustment (PCIA) Reform Proceeding Update
Date: June 25, 2025
Staff will provide a presentation on the item.
ATTACHMENTS
1. PCIA Reform Proceeding Update Presentation
Agenda Page 7
Power Charge Indifference
Adjustment (PCIA) Reform
Proceeding Update
June 25, 2025
Agenda Page 8
Presentation Overview
• PCIA and ERRA Reform
Proceeding Background
• Summary of Track 1 Proposed
Decision
• CPA engagement and next steps
Agenda Page 9
Background: PCIA and ERRA
Purpose of the PCIA: Recover “stranded costs” from departing (e.g. CCA) customers by charging them the net costs of generation contracts procured on their behalf by the IOU while they were bundled customers, leaving bundled customers “indifferent.” Current PCIA framework was determined by a 2018 CPUC decision, which adopted a Market Price Benchmarks (MPB) methodology to determine IOU PCIA portfolio value. • An IOU’s portfolio contains various resources, including brown power resources, Resource Adequacy (RA), and Renewable Energy.
MPBs are updated every year based on market data, which is then utilized to set the PCIA each year within the IOUs Energy Resource Recovery Account (ERRA) proceeding.
3 (Can be positive
or negative)
Agenda Page 10
New PCIA and ERRA Reform Proceeding
The 2025 RA MPBs were much higher than in past years, which depressed the PCIA, leading some parties to raise doubts about the validity of the RA MPB methodology.
Additionally, there was a dispute over the categorization of Local RA in which the CPUC sided with SCE, thus increasing the PCIA for CPA customers.
The Commission stated in the PG&E’s and SCE’s ERRA decisions that it would consider broader PCIA issues, like the RA MPB, in 2025.
The CPUC issued the PCIA and ERRA Reform proceeding on February 20, 2025.
Track 1: Considers and adopts changes to RA MPBs on an expedited basis for implementation by October 2025 for the release of next year’s MPBs. • Proposed Decision (PD) issued in late May (discussed in next slide) Track 2: Further changes to the PCIA framework are on a longer timeline. • Proposed to be completed by 2028
Agenda Page 11
4 Track 1 Staff Proposals vs. Track 1 PD
5 Energy Division (ED) Proposals CalCCA Position on ED Proposals Proposed Decision (PD) #1: Incorporate all recorded transactions in RA
MPB
Oppose: 2 years of data should continue to be
used for RA MPB
Expand time horizon for data collection from
LSEs from 2 year to 4 years.
#2: Utilize one single RA MPB instead of 3 Support Adopted #3: Exclude affiliate transactions from MPB
calculation
Support Adopted
#4: Exclude swap and sleeve transactions Support Adopted #5: Utilize monthly values for the overall RA
MPBs
Support Not adopted
The main issue in dispute was item 1: whether the MPB should continue to be set based on 2 years of data versus all available data (currently five years)
The IOUs supported using all data; CalCCA supported MPBs based on recent market data, not old transactions entered into under different market circumstances
Alternatively, CalCCA supported a compromise of using 3 years of data The 4 years adopted in the PD, while not CalCCA’s preferred outcome, maintains the principle that MPBs should be based on timely market transactions rather than all recorded transactions Agenda Page 12
Next Steps
Comments on the PD were submitted on June 12, reply comments were filed on June 17. PD is slated to be voted on June 26.
CalCCA is seeking data from the Commission’s Energy Division staff to analyze the potential impacts on PCIA.
• Preliminary analysis indicates that competitive margins across all IOU territories will decrease. • CPA staff will analyze the impact on CPA’s competitiveness with SCE when data is available.
CPA staff will develop positions on Track II once the scope ruling has been issued, which is currently expected in Q4 2025.
Agenda Page 13
6 Questions
Agenda Page 14
Staff Report – Agenda Item 3
To: Legislative & Regulatory Committee
From: Gina Goodhill, Senior Director, Government Affairs Ted Bardacke, Chief Executive Officer
Subject: Oral Update on 2025 Legislative Activities and Priorities Date: June 25, 2025
The CEO and Senior Director of Government Affairs will provide an oral update on 2025 Legislative activities and seek committee guidance on priorities for the rest of the legislative session.
Agenda Page 15