Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, August 21, 2025
1:30 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
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting remotely at the following locations:
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
Alhambra City Hall
Conference Room
111 S. First St.
Alhambra, CA 91801
Courtyard Long Beach Downtown
Harbor Board Room
500 East First Street,
Long Beach, CA 90802
Camarillo City Hall
Council Office
601 Carmen Drive
Camarillo, CA 93010
Carson City Hall
City Manager’s Conference Room
701 East Carson Street
Carson, CA 90745
Hawthorne City Hall
Administrative Office
4455 W. 126th Street
Hawthorne, CA 90250
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Santa Paula City Hall
Councilmember Office
970 E. Ventura Street
Santa Paula, CA 93060
Hotel Champlain
60 Battery Street
Burlington, VT 05401
Ventura County Government Center
CEO Point Mugu Room
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 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.
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 May 15, 2025, Executive Committee Meeting
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
3. Review Draft Agenda for the September 4, 2025, Board of Directors Meeting
4. a. Receive a Presentation on the 2025 Proposed Expansion Invitations and b. Provide a Recommendation to the Board of Directors on the Proposed Expansion Invitations
5. Receive a Presentation on the TOU-SMART Default Pilot Proposal and Provide Feedback
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT REGULAR MEETING ON SEPTEMBER 18, 2025
Public Records: Public records that relate to any item on the open session agenda for a Committee Meeting are available for public inspection. Those records that are distributed less than 72 hours prior to the meeting are available for public inspection at the same time they are distributed to all, or a majority of, the members of the Committee. Public records are available for inspection at CPA’s Office at 801 S. Grand Ave., Suite 400, Los Angeles, CA 90017, or online at www.cleanpoweralliance.org/agendas.
Staff Report – Agenda Item 1
To: Executive Committee
Subject: Approve Minutes from the May 15, 2025 Executive Committee Meeting
Date: August 21, 2025
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
May 15, 2025
1:30 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:
Sierra Madre City Hall
Council Chambers
232 W. Sierra Madre Blvd.
Sierra Madre, CA 91024
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Santa Paula City Hall
Councilmember Office
970 E. Ventura Street
Santa Paula, CA 93060
Camarillo City Hall
Council Office
601 Carmen Drive
Camarillo, CA 93010
Hawthorne City Hall
Administrative Office
4455 W. 126th Street
Hawthorne, CA 90250
Carson City Hall
City Manager’s Conference Room
701 East Carson Street
Carson, CA 90745
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Los Angeles Airport Marriott
5855 West Century Boulevard
Los Angeles, CA 90045
Ventura County Government Center
Renaissance Esmeralda Resort & Spa
San Remo Conference Room
44400 Indian Wells Lane
Indian Wells, CA 92210
Alhambra City Hall
Conference Room
111 S. First St.
Alhambra, CA 91801
Ventura County Government Center
CEO Point Mugu Room
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
CALL TO ORDER & ROLL CALL
Chair Klein Lopez called the meeting to order at 1:30 p.m. and Gabriela Monzon, Clerk of the Board, conducted roll call.
Roll Call
Agoura Hills Deborah Klein Lopez Chair Remote
Alhambra Jeff Maloney Committee Member Remote
Beverly Hills Julian Gold Immediate Past Chair Remote
Executive Committee Item 1
Agenda Page 4
Camarillo Absent
Carson Reata Kulcsar Alternate Remote
Hawthorne Alex Monteiro Committee Member Remote
Los Angeles County Rita Kampalath Alternate Remote
Santa Paula Jenny Crosswhite Committee Member Remote
Sierra Madre Robert Parkhurst Committee Member Remote
Ventura County Vianey Lopez Vice Chair Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CLOSED SESSION
None
CONSENT AGENDA
1. Approve Minutes from April 17, 2025, Executive Committee Meeting Motion: Committee Member Parkhurst, Sierra Madre
Second: Committee Member Monteiro, Hawthorne
Vote: The consent agenda was approved by a roll call vote
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
Ted Bardacke, Chief Executive Officer, updated the Committee on the federal tax bill, reporting a significant restructuring of the production tax credits used by CPA’s partners in development. He noted that CPA has only a few smaller battery projects that would be impacted. Tax-exempt government debt was not changed.
Mr. Bardacke reported that CPA has been heavily marketing the Solar and Battery Access Program to low-income customers.
Committee Member Parkhurst asked about the tax bill affecting nuclear power production, and staff responded that nuclear power is considered zero-emission and that the renewable energy industry is exploring ways to leverage that.
Committee Member Gold suggested that CPA put a discussion about nuclear power on the board agenda. Mr. Bardacke said that would be appropriate when the possibility of contracting directly for nuclear resources emerged.
3. Review Draft Agendas for the June 5, 2025, and July 10, 2025, Board of Directors Meetings
Mr. Bardacke, described consent and regular items on the upcoming Board meeting agenda, including appointments to the Community Advisory Committee (CAC), and approval of the Fiscal Year 2025/2026 rates and budget. Committee Member Parkhurst expressed support for the CAC member nominees. Mr.
Bardacke clarified for Committee Member Gold that the Calpine contract would be Executive Committee Item 1
Agenda Page 5
extended for a year with the contractual inflation escalator. Mr. Bardacke explained the meaning of dynamic pricing rates related to the LMS regulations and how CPA is working with Edison to respond to the CEC revisions.
Staff clarified for Committee Member Parkhurst that most items on the July Board agenda may be on the consent calendar, so the meeting would be short and remote locations expanded. Staff also explained that the IRP may come before the Energy Committee later in the month, with a target submission date of November 1, 2025.
4. Receive Presentation on Draft FY 2025/2026 Budget
David McNeil, Chief Financial Officer, presented the draft Fiscal Year 2025-2026 budget. Operating expenses reflect the budget priorities presented to the Executive Committee in April and the Board in May. Most of the budget increase in operating expenses is due to investments in staffing, programs, marketing, and customer communications. The budgeted increase in the net position would bring CPA’s reserve percentage to 50% by June 30, 2026. Days liquidity on hand (DLOH) would increase to approximately 167 days by June 30, 2026. Projected DLOH includes a reduction in CPA’s line of credit from $160 to $120 million, approved by the Board in May 2025. CPA’s financial metrics compare favorably with peer CCAs and are consistent with CPA’s A- credit rating.
Committee Member Parkhurst asked about CPA’s load, and staff responded that in this budget cycle load is slightly decreasing, but the long-term forecast still shows load increasing. Staff clarified for Committee Member Monteiro that the revenue decrease is because of the rate reduction, and that an interim rate adjustment may be needed in the new year. Chair Klein Lopez expressed satisfaction that CPA will meet its reserves target, which may mean more cost savings for customers. Committee Member Gold suggested the Board may consider raising the reserve limit, and staff responded that larger reserves may improve CPA’s credit rating and that it would be a policy decision whether to boost reserves or take other actions, such as increasing funding for programs or increasing CPA’s competitiveness with SCE.
COMMITTEE MEMBER COMMENTS
Committee Member Monteiro reported he attended the CalCCA conference and complimented the workshops.
ADJOURN
Chair Klein Lopez adjourned the meeting at 2:30 p.m.
Executive Committee Item 1
Agenda Page 6
Staff Report – Agenda Item 2
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Oral Update from the CEO on CPA Operations
Date: August 21, 2025
The CEO will provide an oral update on CPA operations.
Agenda Page 7
Staff Report – Agenda Item 3
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Review Draft Agenda for the September 4, 2025, Board of Directors Meeting
Date: August 21, 2025
Staff will provide an overview of the proposed agenda items for the September 4, 2025, Board of Directors meeting for review and feedback from the Executive Committee. The draft Board agenda is attached to this staff report. Information on the main items for Board consideration is provided below.
CONSENT AGENDA
The following items are recommended for inclusion on the Consent Agenda of the September Board meeting.
Approve and Authorize Equitable Building Decarbonization Grant Funding MOU CPA is a member of a coalition led by Los Angeles County that was awarded funding from the California Energy Commission to implement the Equitable Building Decarbonization Direct Install Program (EBD) for the Southern California region. The EBD Program will accelerate residential building decarbonization for single-family homes, multifamily properties, manufactured housing, and public housing in disadvantaged communities through the free installation of electrification and energy efficiency upgrades.
CPA will be responsible for conducting tailored and culturally relevant marketing, education, and outreach (ME&O) activities to inform and engage CPA customers in disadvantaged communities about EBD and its benefits.
Agenda Page 8
The Memorandum of Understanding (MOU) budgets $964,800 for CPA’s efforts through December 31, 2029. Pending final negotiations of the MOU, CPA staff will bring the agreement to the Board for approval at the September 2025 meeting.
Approve Amendments to the Solar Star 3 & 4 Power Purchase Agreements Staff is negotiating an amendment to its long-term Power Purchase Agreement with the Solar Star 3 and Solar Star 4 projects, located in Rosamond, CA, to extend the Guaranteed Commercial Online Date (GCOD) from July 1, 2025, and August 1, 2025 (respectively) to October 1, 2026. The projects have been delayed due to LADWP’s delays in providing feedback on an aqueduct crossing agreement which is required to connect the project’s generation to the nearby substation. The project developer, Berkshire Hathaway Energy (BHE) has agreed to pay liquidated damages to CPA totaling approximately $9.87 million. Per the Energy Risk Management Policy, an amendment that extends a GCOD by more than 12 months is required to be brought to the Board for approval.
Approve Contract for Settlements Software
CPA is currently conducting a Request for Proposals to secure settlement software services, with a recommendation expected to go to the Board for approval in September 2025. The Settlement software is used to track and validate California Independent System Operator (CAISO) settlements, forecast future settlements, and generate reporting on portfolio performance. These services are currently provided by Adapt2 under a contract that expires in February 2026. The new agreement is expected to include an initial one-year term with two one-year renewals at CPA’s discretion for a total of three years.
Annual Electricity Usage by Jurisdiction
Per CPA’s Joint Powers Agreement, in the case of a voting shares (weighted) vote by the Board of Directors, voting shares are based on the percentage of retail load served, by jurisdiction, in the previous year. Staff will request that the Board receive and file the percentage load by jurisdiction for fiscal year 2024-25.
Executive Committee Item 3
Agenda Page 9
Conflict of Interest Code Amendments
The Political Reform Act (Act) requires all public agencies in California, including Clean Power Alliance, to adopt a Conflict of Interest Code (Code) that identifies all agency officials and employees who make governmental decisions and to have these individuals disclose their financial interests by filing a Statement of Economic Interests (Form 700).
CPA’s code was originally adopted by the FPPC in July 2018 and has been reviewed periodically by staff as required by the FPPC. Given the staffing updates associated with the growth of the organization, including its program offerings, the Code requires an amendment. As the FPPC is the approving authority, the amendment does not require Board approval and will be provided as a receive and file item.
REGULAR AGENDA
The following item is recommended for inclusion on the Regular Agenda of the September Board meeting.
Power Purchase Agreement
On June 25, CPA’s Energy Committee approved staff to enter into negotiations for a 125 MW Power Purchase Agreement (PPA) at the SunZia wind facility located in New Mexico.
The Board previously approved a PPA with SunZia on November 2, 2023. This PPA is a stand-alone PPA for additional volume. Staff is negotiating the agreement and should the negotiations be successful, the PPA will be presented to the Board for consideration.
Proposed Expansion Invitations
This item will be subject to a separate presentation to the Executive Committee.
TOU Smart Pilot
This item will be subject to a separate presentation to the Executive Committee.
ATTACHMENT
1. Draft September 4, 2025, Board of Directors Agenda
Executive Committee Item 3
Agenda Page 10
Executive Committee Item 3
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, September 4, 2025
2:00 p.m.
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the July 10, 2025, Board of Directors Meeting
2. Approve and Authorize the Chief Executive Officer to Execute the Equitable Building Decarbonization Grant Funding MOU
3. Approve Amendments to the Solar Star 3 & 4 Power Purchase Agreements
4. Approve Contract for Settlements Software
5. Receive and File Annual Electricity Usage by Jurisdiction
6. Receive and File Conflict of Interest Code Amendments
7. Receive and File Bill Positions Monthly Report
8. Receive and File Monthly Community Advisory Committee Report
9. Receive and File Quarterly Financial Report
10.Receive and File Quarterly Risk Management Report
11.Receive and File Quarterly Program Report
12.Receive and File Quarterly Communications Report
REGULAR AGENDA
Action Items
13. Approve and Authorize the Chief Executive Officer to Execute a Power Purchase Agreement with SunZia Wind PowerCo LLC
14.2025 Proposed Expansion Authorization
Information Item
15.Receive Presentation on the TOU-SMART Default Pilot Proposal and Provide Feedback
COMMITTEE CHAIR UPDATES
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT MEETING ON OCTOBER 16, 2025
Agenda Page 11
Staff Report – Agenda Item 4
To: Executive Committee
From: Karen Schmidt, Senior Director, Rates & Strategy
Approved by: Ted Bardacke, Chief Executive Officer
Subject: Expansion Invitations
Date: August 21, 2025
RECOMMENDATION
Receive presentation from staff and provide input.
ATTACHMENT
1. Proposed Expansion Invitations Presentation
Agenda Page 12
Proposed Expansion Invitations
August 21, 2025
Agenda Page 13
Agenda and Summary
CPA territory expansion: Background and priorities
Proposed 2025 expansion candidates: Cudahy, Fillmore
Benefits and impacts
Process and timeline: New cities that join by 2025 would begin service in 2027 Staff requests that the Executive Committee provide a recommendation to the Board on whether to invite the two cities to join CPA
Agenda Page 14
Two cities well-aligned with CPA priorities have requested to be considered for membership this year for 2027 service start Board priorities for expansion include:
1. Fill geographic holes within CPA’s service territory
2. Seek out load centers where there are synergies with CPA’s environmental and/or programmatic goals
3. Increase diversity among CPA membership
Cudahy and Fillmore elected to move forward with the application process this year o Each aligns with at least two of the three expansion priorities o The two candidate cities are small in terms of load/number of customers 3 City Customers % of CPA Customers Total Load (MWh) % of CPA Load Load Rank among
CPA Member
Agencies
Cudahy 5,984 0.6% 65,025 0.5% 33
Fillmore 5,347 0.5% 51,759 0.4% 35
Total 11,331 1.1% 116,784 1.0% -
Agenda Page 15
Feasibility Studies
A feasibility study was completed for each candidate city with a $10,000 cost contribution by each city; if the city is not invited, the cost contribution will be refunded Feasibility studies primarily look at the financial impact to CPA’s existing customers of serving a new set of customers based on projected rates and costs in the first year of service
When energy prices are rising, prospective new members will always have a higher cost of service and negative financial impact in the near-term relative to existing customers; the opposite is true when energy prices are falling
o When the current and forward cost of energy is higher than CPA’s existing contracts, the average cost of energy procurement for new customers will be higher than for existing customers and vice versa
o For short-term contracts, this impact will decline over time because many of CPA’s hedges are procured no more than three years forward
o For long-term contracts, the potential impact could be positive or negative and is dependent on CPA’s future renewable energy and RA contract costs, which are increasingly uncertain Given current market uncertainties, there is considerable variability in the study’s projected outcomes, but the overall magnitude of financial impact to CPA is small Agenda Page 16
4 5
Benefits and Impact
The benefits of continuing to fill out CPA’s service territory and expand its reach to new customers and communities are significant
o Along with expanding choice, environmental benefits, and economies of scale in procurement and operations, adding new communities will strengthen CPA’s market position and political impact
Adding these cities would bring the total JPA membership to 40 agencies The near-term impact of the proposed 2025 candidates is small relative to CPA’s total load, customer base, and revenue
o The first-year impact of serving the candidate cities results in a projected reduction in net position equal to 0.01% to 0.4% of CPA revenue and therefore a small theoretical impact to existing CPA customer bills
CPA is in full compliance with CPUC Resource Adequacy (RA) requirements for expansion and anticipates CPUC approval for a 2027 launch of service if the Board invites the cities and they decide to join the JPA this fall Agenda Page 17
Financial impact to the organization and current CPA customers will be relatively small and will depend on SCE and PCIA rates, CPA competitive targets, and CPA energy costs
Analysis below assumes 1) current SCE generation rates; 2) a preferred energy option of Clean Power; and 3) total bill comparisons at current levels 6 Projected First-Year Financial Impact
High PCIA (+2.5 c/kWh) PCIA Forecast (~0 c/kWh) Low PCIA (-2.5 /kWh) (current)
Projected net revenue -$4.2 MM -$1.3 MM +$1.6 MM
% of projected CPA revenue -0.44% -0.10% +0.10%
Projected First-Year Net Revenue Impact – Clean Power Preferred Energy Option Negative Impact Base Case Positive Impact
$/monthly bill +$0.34 +$0.10 -$0.13
$/monthly bill (Phase 7) +$0.32 +$0.02 -$0.27
$/monthly bill (Phase 6) +$0.15 - $0.17
Projected Impact of Expansion to Current Residential Customer Bills – Example In their first year of service, the addition of Phase 6 cities had a positive impact on net revenue Agenda Page 18
7 Process and Timeline
September 4, 2025: CPA Board votes to invite candidate cities to join CPA.
By November 30, 2025: Candidate cities pass ordinance to join CPA’s JPA and proceed with CCA implementation. Cities may choose a preferred energy option when they adopt an ordinance or may defer the decision to a later date.
December 4, 2025: CPA Board holds public hearing and considers a Resolution to approve an Addendum to the Implementation Plan and to admit the cities into CPA.
By December 31, 2025: CPA submits Implementation Plan Addendum to CPUC in order to begin service in 2027.
January – December 2026: CPA secures energy resources to serve new load and works with new member agencies on preferred energy option selection (if applicable), launch timeline, and community outreach and education.
2027: Service to new customers begins.
Agenda Page 19
Action Requested
Staff requests that the Executive Committee provide a recommendation to the CPA Board of Directors on whether to invite the cities of Cudahy and Fillmore to join CPA in 2025, with service to customers in those communities to begin in 2027.
Agenda Page 20
Appendix
Agenda Page 21
Typical Process to join CPA
10 City Council
Considers
Expressing
Interest in
Joining CPA
CPA
Conducts
Feasibility
Study/ Board
Considers
Inviting New
Member
City Council
Considers
Adopting
Ordinance
Joining JPA
CPA Board
Admits Cities
and Files
Imple-mentation
Plan by End
of CY
Onboarding
Process/
Public
Outreach
CPA Service
Goes Live
City Does Not Move Forward
City Does
Not Move
Forward
City Cannot
Join JPA
City Does
Not Join
JPA
No
City Waits
Another
Year to
Launch CPA
Service
No No No
Yes Yes Yes Yes Yes
Jan-Jun Jan-Sept Oct-Nov Nov-Dec CY +1 CY +2
Agenda Page 22
Staff Report – Agenda Item 5
To: Executive Committee
From: Karen Schmidt, Senior Director, Rates & Strategy
Approved By: Ted Bardacke, Chief Executive Officer
Subject: TOU-SMART Default Pilot
Date: August 21, 2025
RECOMMENDATION
Receive presentation from staff and provide feedback.
ATTACHMENTS
1. TOU-SMART Default Pilot Presentation
Agenda Page 23
TOU-SMART Default Pilot Proposal
August 21, 2025
Agenda Page 24
In June 2024 the CPA Board approved a new residential TOU-D-PRIME-SOP (Super Off-Peak) rate option with a lower daytime (8am-4pm) rate and higher overnight (9pm-8am) rate to encourage customers to charge EVs during the day when electricity is cheapest and cleanest CPA will promote the new rate option under the brand “TOU-SMART” to EV SmartCharge program participants as a way for customers to further reduce their EV charging costs In addition to offering TOU-SMART as an opt-in rate for interested customers, CPA staff propose launching a 2-year pilot program to default approximately 2,600 customers onto the new rate to assess its impact on customer response and bills and on CPA energy costs and GHG emissions o These ~2,600 customers are currently on the standard TOU-D-PRIME rate, which is designed for customers with all (or mostly) electric buildings and/or EVs o Customers defaulted to TOU-SMART would be able to opt back to TOU-D-PRIME (or any other Domestic rate) at any time and would receive bill protection for the first 12 months The results of the pilot will inform future CPA rate design recommendations to support load shifting
2 Summary
Agenda Page 25
TOU-SMART has lower super off-peak (SOP) rates from 8am – 4pm, offset by increased off-peak rates from 9pm – 8am
This rate differential reflects the lower costs and emissions from energy generated during the day, when solar energy is abundant
3 The TOU-SMART rate option reduces daytime
electricity rates when solar power is abundant
Agenda Page 26
CPA will encourage EV SmartCharge participants to enroll in TOU-SMART, but voluntary enrollment is likely to be low Switching to TOU-SMART and enrolling in the EV SmartCharge program could reduce customer electricity costs by shifting charging from overnight to daytime hours when possible
Promotion of the TOU-SMART rate in conjunction with marketing of the EV SmartCharge program will begin in the fall. However, voluntary enrollment is likely to garner a few hundred TOU-SMART enrollments at most over the next 1-2 years Low enrollment will limit CPA’s ability to assess the rate’s impact o A sample size of at least 2,000-3,000 is needed to provide statistically significant insights into changes in customer behavior
Agenda Page 27
4 A default pilot of TOU-SMART would allow CPA to evaluate the impact of price signals on customer behavior and costs CPA proposes defaulting 2,600 residential TOU-D-PRIME customers to the new rate for two years, starting spring 2026
o Includes a buffer for opt-outs and ensures that we can detect a meaningful difference in monthly usage with 95% confidence
The pilot would enable CPA to evaluate the impact of the new rate on:
o Customer load shifting and bills in response to price signals o Customer participation and satisfaction
o CPA revenue and cost of service
Results would help inform consideration of a default SOP rate and other new rates and programs o If the rate results in a significant shift in customer behavior, CPA might consider making it the default rate for all non-NEM TOU-D-PRIME customers
o Insights into customer price elasticity could inform modifications to TOU rate differentials for other residential TOU rates
o Post-pilot customer surveys could help inform future marketing and education campaigns Agenda Page 28
5 Customer selection, enrollment and bill protection
The 2,600 participants will be randomly selected from a pool of about 30,000 non-NEM customers across CPA’s service territory who are currently enrolled on the TOU-D-PRIME rate and have been CPA customers for at least one year Selected pilot participants will receive two notices by mail explaining their enrollment in the pilot, how they can save money, where to go for more information, and how to opt out of the pilot
o Additional educational information and tips about how they are performing and how to reduce electricity costs will be shared with participants periodically during the pilot Participants will be able to opt out of the pilot at any time at the CPA website, via email, or by calling Customer Service
Participants will be provided with bill protection for the first 12 months o If customers end up paying more on TOU-SMART than they would have on TOU-D-PRIME, they will receive a bill credit for the difference at the end of the 12 months Agenda Page 29
6 Proposed implementation timeline
7 November-December 2025: Prepare for customer outreach, enrollment and billing, and data collection and analysis
o Design and produce web page, fact sheet, customer mailers, member agency and call center talking points
o Work with Calpine to implement enrollment, billing, and bill protection requirements January-February 2026: Conduct customer outreach and education o Deliver minimum of two customer notifications and fact sheet by mail, 60 days and 30 days ahead of launch (funds included in Board-approved FY 25/26 budget) o Conduct targeted outreach to EV owners outside of pilot cohort to promote managed charging and opt-in to new rate
March 2026: Enroll selected default customers to new rate March 2027: Bill protection ends for enrolled customers March 2028: Evaluate pilot results and consider making new rate a default, discontinuing the rate, or other options
Agenda Page 30
Next Steps
8 Staff requests feedback from the Executive Committee on the proposed pilot, its structure, timing, customer communications, and other parts Feedback will also be requested from the Board at the September 4 Board meeting Depending on feedback, the pilot could be brought to the Board for approval as early as October
Agenda Page 31
Questions / Discussion
Agenda Page 32