Energy Planning & Resources Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, August 27, 2025
12:15 p.m.
Visit CPA’s YouTube Channel to watch a Live Stream of the Meeting *There may be a streaming delay of up to 90 seconds. This is a view-only live stream.
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting remotely at the following locations:
Manhattan Beach City Hall
City Manager Conference Room
1400 Highland Avenue
Manhattan Beach, CA 90266
Alhambra City Hall
Conference Room A
111 S. First St.
Alhambra, CA 91801
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Temple City City Hall
City Hall Conference Room
9701 Las Tunas Drive
Temple City, CA 91780
Arcadia City Hall
Council Chambers Conference Room
240 W. Huntington Drive
Arcadia, CA 91007
LA County Sanitation District
Conference Room D
1955 Workman Mill Road
Whittier, CA 90601
West Hollywood City Hall
3rd Floor Conference Room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
City of Oxnard Service Center 1
East Conference Room
214 South C Street
Oxnard, CA 93030
PUBLIC COMMENT: Members of the public may submit their comments by one of the following options:
• Email Public Comment: Members of the public are encouraged to submit written comments on any agenda item to [email protected] up to four hours before the meeting. Written public comments will be announced at the meeting and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting.
• Provide Public Comment During the Meeting: The General Public Comment item is reserved for persons wishing to address the Committee on any Clean Power Alliance-related matters not on today’s agenda. Public comments on matters on today’s Consent Agenda and Regular Agenda shall be heard at the time the matter is called. Comments on items on the Consent Agenda are consolidated into one public comment period.
Members of the public who wish to address the Committee at CPA’s Office are requested to complete a comment card and provide it to staff.
Agenda Page 1
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.
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ACCESSIBILITY: Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least two (2) working days before the meeting at [email protected] or (213) 713-5995. Notification in advance of the meeting, while not required, will enable us to make reasonable arrangements to ensure accessibility to this meeting and the materials related to it.
CALL TO ORDER & ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the June 25, 2025, Energy Committee Meeting
2. Receive and File July 2025 Risk Management Team Report
3. Receive and File 2025 Clean Energy and Reliability RFO Longlist Presentation
REGULAR AGENDA
4. Oral Update from the Vice President of Power Supply
5. Approve the 2025 Power Share Shortlist and Waitlist as Recommended by the RFO Review Team
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING SEPTEMBER 24, 2025
Public Records: Public records that relate to any item on the open session agenda for a Committee Meeting are available for public inspection. Those records that are distributed less than 72 hours prior to the meeting are available for public inspection at the same time they are distributed to all, or a majority of, the members of the Committee. Public records are available for inspection at CPA’s Office at 801 S. Grand Ave., Suite 400, Los Angeles, CA 90017, or online at www.cleanpoweralliance.org/agendas.
Agenda Page 2
Staff Report – Agenda Item 1
To: Energy Planning & Resources Committee
Subject: Approve Minutes from the June 25, 2025, Energy Committee Meeting
Date: August 27, 2025
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
MINUTES
Energy Planning & Resources Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, June 25, 2025, 12:15 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:
Manhattan Beach City Hall
City Manager Conference Room
1400 Highland Avenue
Manhattan Beach, CA 90266
Clean Power Alliance Office
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Alhambra City Hall
Conference Room A
111 S. First Street
Alhambra, CA 91802
City of Oxnard Service Center 1
East Conference Room
214 South C Street
Oxnard, CA 93030
West Hollywood City Hall
3rd Floor Conference Room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
Arcadia City Hall
Council Chambers Conference Room
240 W. Huntington Drive
Arcadia, CA 91007
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Temple City City Hall
City Hall Conference Room
9701 Las Tunas Drive
Temple City, CA 91780
L.A. County Sanitation District
Conference Room D
1955 Workman Mill Road
Whittier, CA 90601
CALL TO ORDER & ROLL CALL
Chair Parkhurst called the meeting to order at 12:15 p.m. and Gabby Monzon, Clerk of the Board, conducted roll call.
ROLL CALL
Alhambra Jeff Maloney Committee Member Remote
Arcadia Michael Cao Committee Member Absent
Carson Reata Kulcsar Committee Member Remote
Manhattan Beach David Lesser Committee Member Remote
Oxnard Kathleen Mallory Committee Member Remote
Sierra Madre Robert Parkhurst Chair Remote
Energy Planning & Resources Committee Item 1
Agenda Page 4
South Pasadena Diana Mahmud Committee Member Remote
Temple City Ed Chen Committee Member Remote
West Hollywood Chelsea Byers 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 May 28, 2025, Energy Committee Meeting
2. Receive and File May 2025 Risk Management Team Report Motion: Committee Member Byers, West Hollywood
Second: Committee Mahmud, South Pasadena
Vote: The consent agenda was approved by a roll call vote, with Committee Member Lesser abstaining on the Minutes
REGULAR AGENDA
3. Oral Update from the Vice President of Power Supply
Lindsay Descagnia, Vice President of Power Supply, and Ted Bardacke, Chief Executive Officer, presented a policy update. Mr. Bardacke reported on the federal bill impacting tax credits used for CPA projects and compared the Senate and House versions.
Chair Parkhurst asked how changes to tax credits would affect rates, and staff responded that the power purchase agreements would help stabilize rates in the near term, noting that there is greater concern about projects coming online after 2030. Committee Member Lesser commented that he was recently asked why is there an aggressive effort to remove green capacity from our grid when there’s a shortage of energy, and Mr. Bardacke responded that there’s a misunderstanding that natural gas can meet all energy needs and added that in the effort to save tax credits, the renewable energy industry is emphasizing jobs and prices rather than talking about climate change. Committee Member Mahmud asked how natural gas and solar costs will compare without tax incentives. Mr. Bardacke said it is unknown because of profit margins and tariffs. However, projects typically get a tax credit of 30%.
4. Authorize CPA Staff to Enter Contract Negotiations for a Bilateral Power Purchase Agreement for 125 MW at the SunZia Facility as Recommended by the Review Team
Ms. Descagnia reported that on June 15, 2025, four members of the Energy Committee reviewed a bilateral proposal for a 15-year incremental 125 MW portion of the SunZia project. The review team recommended that staff bring the proposal to the Energy Committee to authorize contract negotiations for a bilateral Power Purchase Agreement (PPA). Ms. Descagnia presented a project overview, evaluation summary, and rationale for approval, including wind delivery profile, renewable energy value, Resource Adequacy (RA) value, and project certainty.
Energy Planning & Resources Committee Item 1
Agenda Page 5
Ms. Descagnia explained that wind energy is essential to CPA’s portfolio because it complements the solar energy generating profile and provides renewable energy in the evening and at night. Baseload renewable technologies like geothermal and biomass can also fill the need for energy in the evening and at night, but availability is limited, and cost is high. Other considerations for the Committee include limited opportunities to procure wind resources, the SunZia proposals are priced lower than other recently received wind proposals, and SunZia is a mature project with no complications from tariffs or tax credits.
Staff clarified for Committee Member Mahmud that it would be challenging to extend the original PPA with SunZia as that portion of the project has gone through its financing and permitting processes; however, the company does have flexibility as to the contract and the new proposal. Committee Member Kulcsar asked about the contract term, and staff stated it will start in October 2026 and end in 2041.
Committee Member Lesser suggested that staff emphasize the arguments in favor of wind in the presentation to the Board. Committee Member Mahmud motioned to enter into contract negotiations for the new contract, adding that staff explore an extension to the original PPA.
Motion: Committee Member Mahmud, South Pasadena
Second: Committee Member Lesser, Manhattan Beach
Vote: The item was approved by a roll call vote
5. Recommend Approval of the Proposed Amendments to the Energy Risk Management Policy to the Board of Directors
David McNeil, Chief Financial Officer, reported that staff conduct an annual review of the Energy Risk Management Policy (ERMP) that governs the framework by which the CPA conducts power procurement and related business activities. The proposed amendments account for emerging risks, changing business conditions, and/or regulatory requirements. The Energy Committee was asked to recommend approval of the proposed amendments for the Board to consider at its July 10 meeting.
Mr. McNeil described proposed amendments to the minimum and maximum hedge limit percentages for Energy Hedges, Resource Adequacy (RA), and Carbon Free Energy (CF). Other amendments include clarifying the method of counting energy storage in RA hedge positions, clarifying authority for Exigent Exclusivity Agreements, adding Trade Capture and Quality Assurance to the list of Business Practices, and other administrative changes.
Committee Member Mahmud asked if CPA’s increasing number of energy contracts would resolve the hedges issue, and Mr. McNeil responded that more long-term agreements would not help gaps in the load. Ms. Mahmud suggested that CPA use the term Exigent Exclusive Negotiation Agreement instead of Exigent Exclusivity Agreement for clarity, and General Counsel Whang stated she would incorporate that language change. Staff clarified for Committee Member Lesser that identifying how other CCAs manage their risk would be difficult. Committee Member Kulcsar supported adding Trade Capture to CPA’s Business Practices.
Motion: Committee Member Mahmud, South Pasadena
Second: Committee Member Mallory, Oxnard
Vote: The item was approved by a roll call vot
Energy Planning & Resources Committee Item 1
Agenda Page 6
COMMITTEE MEMBER COMMENTS
Committee Member Lesser commented on a news article about the significant energy needs at Amazon’s new data center involving artificial intelligence systems. Committee Member Mahmud noted that some states require data centers to pay for costs when their energy use impacts the grid. Mr. Bardacke responded that there are currently data center bills in the California legislature. Chair Parkhurst reported on the day’s CAISO readings; 84% of the energy on the grid was renewables, and 89.9% of that was solar.
ADJOURN
Chair Parkhurst adjourned the meeting at 1:30 p.m.
Energy Planning & Resources Committee Item 1
Agenda Page 7
Staff Report – Agenda Item 2
To: Energy Planning & Resources Committee
From: Lyon Hardgrave, Director, Energy Risk Management
Approved By: Ted Bardacke, Chief Executive Officer
David McNeil, Chief Financial Officer
Subject: Receive and File July 2025 Risk Management Team Report Date: August 27, 2025
July 2025 RMT REPORT
Key Actions
• Reviewed the counterparty credit exposure summary
• Reviewed April 2025 day-ahead load forecast performance • Reviewed 2025 - 2030 Renewable and Carbon-Free positions • Reviewed PCC1 purchase and sale strategy
• Reviewed the 2025 - 2027 slice of day RA position
• Reviewed 2026 - 2028 CF purchase strategy
• Reviewed COD impacts on RA compliance
• Reviewed RA purchase and sale strategy
• Reviewed Energy Risk Management Policy (ERMP) compliance for RA, REC, CF, and Energy
• Reviewed Long-Term Energy Contract amendments and terminations • Reviewed the Negative REC Price strategy
Agenda Page 8
Energy Planning & Resources Committee Item 2
Policy Compliance
Policy Deviation Required Action
Beginning in June 2024, the renewable
energy hedge ratio exceeded the
maximum hedge percentage for 2027
due to the addition of new renewable
energy supply from a PPA.
Beginning in November 2024, the
renewable energy hedge ratio exceeded
the maximum hedge percentage for
2028-2030 due to a reduction in the
renewable energy product targets that
are used for long-term power planning
and position management.
None.
The deviations for 2027-2030 will resolve themselves
as CPA nears these years and the maximum hedge
percentages increase.
ATTACHMENT
None.
Agenda Page 9
Staff Report – Agenda Item 3
To: Energy Planning & Resources Committee
From: John McNamara, Director, Structured Contracts
Reviewed by: Lindsay Descagnia, Vice President, Power Supply Matthew Langer, Chief Operating Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: 2025 Clean Energy and Reliability RFO Longlist Date: August 27, 2025
Staff will provide a presentation on the item.
ATTACHMENT
1. 2025 Clean Energy and Reliability RFO Longlist Presentation Agenda Page 10
2025 Clean Energy and
Reliability RFO Longlist
August 27, 2025
Agenda Page 11
CPA received 106 proposals in 2025 Clean Energy and Reliability RFO, which is 33% more proposals than in the 2024 Clean Energy and Reliability RFO
The majority of offers received were for either Standalone Storage or Renewable Generation + Storage. For renewable generation, all offers were for solar aside from two wind proposals There were 53 proposals that requested Fast-Track consideration; staff expects many projects will become unavailable as proposers seek a PPA or shortlisting notification that will allow them to retain their Full Capacity Deliverability Status (FCDS)
Viable projects, especially solar and wind projects, are likely to increase in price over the next 2-3 RFO cycles as Sellers navigate the knowns and unknowns of the current market environment including reduced or eliminated tax credits, increased tariff costs and interconnection queue delays The Review Team and Energy Committee will need to consider if market conditions warrant procuring more now in anticipation of dwindling opportunities to secure solar and wind projects that are eligible for tax credits Staff is performing due diligence on proposals, and the results will be presented to the RFO Review Team and Energy Committee in September
2 Executive Summary
Agenda Page 12
2025 RFO Overview and Goals
The purpose of the 2025 Clean Energy and Reliability RFO is to solicit competitive proposals to fill a larger portion of CPA's portfolio needs with long-term contracts, reducing the need to procure products such as Resource Adequacy (RA) and renewable energy in volatile short-term markets CPA set PPA Start Dates to range from January 1, 2029 to December 31, 2032 to best align with CPA’s portfolio needs Similar to recent RFOs, the 2025 RFO has a ‘fast-track’ path that allows CPA to start negotiations on high-value projects before CPA’s Energy Committee considers the Review Team’s shortlist recommendation. Staff is still considering fast track projects
CPA has implemented several changes to the RFO protocol this year including:
Restricted projects within CAISO to Queue Cluster 14 or earlier since Queue Cluster 15 project do not yet know their interconnection costs and would be unlikely to commit to a firm price Allowed proposers the opportunity to request tariff price adjusters to address potential changes in tariff costs on equipment.
Tariff price adjusters have the potential to increase or decrease the Contract Price if tariff costs differ from the benchmark tariff cost
Asked proposer to identify the benchmark tax rate they would pursue and any PPA price reducers that would occur if they exceed the benchmark tax rate
Agenda Page 13
3 RFO Offer Overview
Summary Stats
Number of conforming offers 106*
Number of offers with Full Capacity
Deliverability Status (FCDS) 78
Number of sellers submitting offers 37
Counties spanned by submissions 30
States represented by offers 3
Number of new facility offers 99
Number of existing facility offers 7
Local Projects 21
Bundled Offers 1
Fast-Track Requests 56
Earliest online date 1/1/2029
Latest online date 12/31/2032
Product Type
(Conforming Offers) Total Local
Standalone Storage 56 17
RA-only 15 4
RPS + Storage 25 0
RPS only 1 0
PCC1 Energy
(Fixed or Index Plus) 5 0
Tolls (Dispatchable Gas) 4 0
Total 106 21
4 * 21 proposals have withdrawn so only 85 proposals remain eligible to date Agenda Page 14
Offer Locations are Concentrated
Los Angeles, Kern, Riverside and San Bernardino Counties were the dominant regions for Stand-Alone storage projects whereas renewable project development are more dispersed Agenda Page 15
5 Offers by Product and Technology Type
Solar and storage were the dominant technologies offered into this RFO. Two wind projects were offered, but no geothermal or biomass resources were received Agenda Page 16
6 7
Large Scale Projects Are Popular
CPA received a healthy mix of project sizes in this year's RFO Agenda Page 17
Developers are Targeting Early Online Dates
The majority of online dates are in 2029 and 2030
Agenda Page 18
Storage Pricing is Less Volatile
Energy generation prices continue to increase but Stand-Alone Storage pricing is relatively stable and trending slightly downward
Agenda Page 19
9 Reduced Emissions Thermal Toll Offer Overview
CPA received bids from two Sellers for 4 total thermal toll offers Projects are located in Riverside, Solano, and San Bernardino counties These are existing natural gas facilities that intend to add a battery to their operations Integrating a battery energy storage system allows a natural gas facility to dispatch stored energy for specific durations, potentially reducing the need to bring the thermal plant online and/or reduce its runtime. This results in a reduction to the overall GHG emissions of the plant.
Gas Toll Product Type Count
Existing dispatchable gas with storage 4
Existing dispatchable gas with blended fuels
(renewable biogas or hydrogen)
0 Agenda Page 20
10 Next Steps
Staff is performing due diligence of proposals and considering fast track offers Review Team will meet in September to review confidential valuation results and form a recommendation for the shortlist and waitlist
A shortlist and waitlist will be presented to the Energy Committee for consideration in September
Agenda Page 21
11 2025 Clean Energy and Reliability RFO Schedule
May 20, 2025 RFO Opens
June 30, 2025 Deadline to submit RFO Proposals
July 28, 2025 Deadline to submit RFO Proposal Updates
Mid-September 2025RFO Review Team reviews offers (schedule TBD) September 24, 2025 Energy Committee shortlist consideration Late SeptemberBidders notified of shortlist status
August 2025* – January 2026
Power Purchase Agreement (PPA), Energy Storage
Agreement (ESA) Resource Adequacy Agreement
(RAA) negotiations
October 2025 – February 2026 Board Consideration of PPAs * Includes Fast-Tracked projects
Agenda Page 22
12 Appendix
Agenda Page 23
13 2025 RFO Product Types and Eligibility
14 Product
Types Description of Eligible Resources Term (Years) Size (MW) 2 Earliest Online Date Latest Online
Date
Renewable
Portfolio
Standard (RPS)
Generation Only
Solar, wind, geothermal, biomass, small hydro
(bundled with RA or energy-only) 10 to 201 15 to 250 January 1, 2029 December 31, 2032 RPS Generation +
Storage RPS generation paired with storage 10 to 20 15 to 250 January 1, 2029 December 31, 2032 Standalone
Storage
Standalone storage facilities with a minimum
duration of at least 4 hours 10 to 20 15 to 250 January 1, 2029 December 31, 2032 Resource
Adequacy (RA) -
Only
Offers from any technology for RA capacity (no
energy) 5 to 15 15 to 250 January 1, 2029 December 31, 2032 Blended or
Hybrid Tolls
Natural gas facilities that reduce emissions by
converting to a blended fuel source and/or adding
battery energy storage
2 to 10 10 MW Minimum January 1, 2029 December 31, 2032 1 Term limits for Energy Only offers will be 5 to 20 years 2 The minimum size eligibility requirement for projects located within Los Angeles or Ventura county (excluding product type Blended or Hybrid Tolls) will remain at 5 MWs This year, the proposed maximum project size has been reduced and the earliest and latest online dates have been shifted to reflect CPA's needs
Agenda Page 24
Evaluation Criteria
With the exception of natural gas tolls, projects will be ranked using CPA’s standard criteria (see Appendix for detailed descriptions):
15 Environmental
Stewardship
Workforce
Development
Quantitative
Evaluation
Development
Risk
Project
Location
Benefits to
DACs
Tariff & Tax
Credit Price
Adjusters
Agenda Page 25
Quantitative Evaluation
All projects will be assessed for market performance against the relevant project Pnode
Valuation will be performed using Ascend’s PowerSIMMTM platform, dispatching resources against simulated Pnode prices
Projects will be valued for their Resource Adequacy as well as revenues across all relevant Day-Ahead, Real-Time, and ancillary markets Data provided by bidders in the Offer Form Template will be used to model proposals
Agenda Page 26
16 Development Risk
Projects will be ranked from high (good) to low (bad)
The development risk metric is a composite rank based on a number of factors impacting project risk:
o Site control
o Interconnection status
o Environmental screens
o Land use and permits
o Project financing
o Developer experience
Agenda Page 27
Environmental Stewardship
Projects are ranked high, medium, neutral, and low based on the following prioritization:
Demonstrates multiple benefits (provides additional societal, health, economic, water saving, or environmental benefits beyond the climate and GHG reduction benefits of renewable energy)
HIGH
Located in an area designated as a preferred renewable energy zone and received required land use entitlement permits
MEDIUM
LOW Project is located in a high conflict area
NEUTRAL Project does not demonstrate either preference or avoidance criteria Agenda Page 28
Workforce Development
Projects are ranked high, medium, and low based on the following prioritization:
The project will use targeted-hire, union labor, or multi-trade project labor agreements (including requirements for state-apprenticeship graduates) HIGH The project does not have a labor agreement, but can demonstrate prevailing wage, union labor, and targeted hire commitments MEDIUM The project does not demonstrate prevailing wage, union labor, and targeted hire commitments
LOW
Agenda Page 29
Project Location
HIGH In Los Angeles and Ventura counties
Other counties within California
Projects located within a Federally-designated energy community or on tribal lands with demonstrated community support (including outside of California)
MEDIUM
Projects outside of California not located in a Federally-designated energy community or on tribal lands without demonstrated community support LOW
Projects are ranked high, medium, and low based on the following prioritization:
Agenda Page 30
Benefits to Disadvantaged Communities
Projects are ranked high, medium, neutral, and low based on the following prioritization:
Located within a DAC and demonstrates DAC workforce and community development benefits HIGH
Project not located within a DAC but can demonstrate DAC benefits and has completed community outreach MEDIUM
LOW Project is inconsistent with community priorities
NEUTRAL Project does not demonstrate DAC benefits
Agenda Page 31
Tariff and Tax Credit Price Adjusters
CPA will consider the incremental reductions in contract price, identified in the Offer Form, if the Seller receives an Investment Tax Credit (ITC) or Production Tax Credit (PTC) above the proposer’s stated benchmark. Projects will be ranked based on the percentage decrease relative to the Contract Price offered at the benchmark ITC/PTC rate identified by the Proposer.
Tariff Price Adjusters: CPA will rank based on projects that minimize the percentage increase in Tariff Price Adjusters relative to the Contract Price.
Agenda Page 32
Toll Evaluation Criteria
CPA received tolling offers from hybrid natural gas facilities that incorporate battery energy storage
Only offers that can demonstrate a plan for this cleaner alternative are eligible for participation in this RFO
CPA will use the following criteria when evaluating these offers:
Workforce
Development
Quantitative
Evaluation
(Value)
Plan for
Transition to
Cleaner
Operations
Benefits to
DACs
23 GHG
Emissions
Agenda Page 33
Transition to Cleaner Operations
Projects are required to explain how their project will transition to cleaner operations in their Narrative document.
Agenda Page 34
GHG Emissions
25 CPA will forecast the expected generation and associated GHG emissions at a natural gas facility
CPA may receive offers from facilities that are very efficient and are expected to run frequently and offers from facilities that are less efficient and expected to run infrequently
CPA will use forecasted data to analyze a facility’s total GHG output and the facility’s efficiency and determine the effects such facility will have on CPA's Product Content Label and GHG emissions profile
This will be a quantitative measure, not ranked High, Medium, Low Agenda Page 35
Disadvantaged Community Impacts
Natural Gas resources will have differing impacts on DACs than renewable resources. Impacts to DACs will be assessed in conjunction with scoring in the three qualitative evaluation criteria; 1) impacts of the agreement on a transition to cleaner operations, 2) workforce development, and 3) GHG emissions Demonstrates DAC benefits, including transition to cleaner operations or retirement at the end of the contract term
HIGH
Project does not demonstrate additional DAC benefits, or is not located in a DAC
NEUTRAL
LOW Project is harmful or inconsistent with community priorities Agenda Page 36
26 Workforce Development
• CPA will use its traditional workforce development criteria with a slight modification to address existing facilities
The project is a union site or will use targeted-hire, union labor, or multi-trade project labor agreements (including requirements for state-apprenticeship graduates) HIGH
The project is not a union site or does not have a labor agreement, but can demonstrate prevailing wage, union labor, and targeted hire commitments MEDIUM
The project does not demonstrate prevailing wage, union labor, and targeted hire commitments
LOW
Agenda Page 37
27 Staff Report – Agenda Item 4
To: Energy Planning & Resources Committee
From: Lindsay Descagnia, Vice President, Power Supply
Subject: Oral Update from Vice President, Power Supply
Date: August 27, 2025
The VP will provide an oral report on CPA energy procurement activities.
Agenda Page 38
Staff Report – Agenda Item 5
To: Energy Planning & Resources Committee
From: John McNamara, Director, Structured Contracts
Reviewed by: Lindsay Descagnia, Vice President, Power Supply Matthew Langer, Chief Operating Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: 2025 Power Share RFO Shortlist and Waitlist
Date: August 27, 2025
RECOMMENDATION
Approve the 2025 Power Share RFO shortlist and waitlist as recommended by the RFO Review Team.
ATTACHMENT
1. 2025 Power Share RFO Shortlist Presentation
Agenda Page 39
2025 Power Share
Request for Offers
Shortlist
Energy Committee
August 27, 2025
Agenda Page 40
Executive Summary
2 Under CPA’s Power Share program (known by the California Public Utilities Commission (CPUC) as the Disadvantaged Green Tariff (DAC-GT) program), CPA procures energy from small-scale renewable projects within Disadvantaged Communities (DACs) in order to provide 100% renewable energy to low-income customers at a 20% bill discount.
The CPUC funds above market costs for these resources and the 20% bill discount.
CPA launched its fourth Power Share RFO in May 2025 to fill its remaining 12.545 MW of unprocured capacity.
CPA received 10 conforming offers from 5 developers, totaling nearly 40 MW of capacity. Three offers were for local projects in Ventura County.
An RFO Review Team consisting of four Energy Committee members and CPA Staff including the CEO, COO and VP of Power Supply reviewed confidential offer information and developed a recommended shortlist and waitlist.
Agenda Page 41
Action Requested
3 Approve the 2025 DAC-GT RFO shortlist and waitlist (slide 14) as recommended by the RFO Review Team.
Agenda Page 42
Agenda
4 Program and Regulatory background
Shortlist Recommendation
Next Steps
Agenda Page 43
Program and
Regulatory
Background
5 Agenda Page 44
Power Share Regulatory Background
6 Two updates to the DAC-GT program resulted in new program capacity. o In June 2024, the CPUC issued D. 24-05-065 modifying the DAC-GT and Community Solar Green Tariff (CSGT) programs and as a result, CPA’s Power Share program capacity was increased by 50% to 18.285 MW.
o In July 2025, the CPUC approved DAC-GT capacity transfer from SCE, increasing CPA’s Power Share capacity by 1.53 MW.
CPA's new remaining or unprocured Power Share capacity is 12.545 MW.
CPA must implement its Power Share program consistent with CPUC guidelines, including adherence to a confidential cost cap for proposed projects that was set at the launch of the program1. o In July 2025, the CPUC approved an updated cost cap, per D.24-05-065. Program Administrators (PAs) have until the end of 2025 to leverage the existing cost cap in their solicitations.
1. The price cap was established in D.18-06-027 based on 200% of the Renewable Auction Mechanisms’ as-available peaking category.
Agenda Page 45
Power Share Program Current Status
Power Share currently serves ~10,000 residential customers Most Power Share customers are served by interim resources procured from SCE; these customers will transition to being served by CPA’s own resources as they come online o SCE’s future willingness to sell interim DAC-GT resources to CPA is uncertain, therefore it is important that CPA procure new resources to serve its customers
36.7% of CPA’s Power Share program capacity is currently filled by long-term contracts 7 Agenda Page 46
CPA’s Power Share Portfolio
8 CPA has 8 active contracts for its Power Share program*.
Prologis El Segundo, Dominguez, and Wilmington 2 projects in Hawthorne and Carson are online. The remaining contracted Power Share projects are in development with expected CODs in 2025 and 2026.
Counterparty Project Program Capacity (MW) COD Location Prologis El Segundo Power Share 0.64 7/29/2025 Hawthorne Prologis Dominguez Power Share 0.96 8/12/2025 Carson
Prologis Wilmington 2 Power Share 0.6 8/15/2025 Carson
Prologis Wilmington 1 Power Share 1.8 Q3 2025 Carson
Prologis Carson 1 Power Share 0.68 Q1 2026 Carson
Prologis Commerce 4 Power Share 1.24 Q1 2026 Commerce
Prologis Eaves 1 Power Share 0.68 Q1 2026 Commerce
Prologis Eaves 3 Power Share 0.67 Q1 2026 Commerce
7.27 MW
Program Allocation (MW) PPA Executed Capacity (MW) Remaining Program Capacity (MW)
19.815 7.27 12.545
*CPA also has 4 projects for its Power Share Community Solar program, totaling 3.37 MW. 2 projects are currently online (0.67 MW), and 2 are expected to go online in June 2026 (2.7 MW) Agenda Page 47
Congressional Budget Bill Impacts
9 The 2025 Power Share RFO was launched on May 12, 2025 On July 4, 2025, passage of the Congressional Budget Bill established that renewable generation projects that are not under construction by July 4, 2026, must be placed in service by the end of 2027 to qualify for tax credits (Investment Tax Credit (ITC) or Production Tax Credit (PTC)) In response, CPA released an addendum to the RFO requiring that proposers provide a PPA Offer Price assuming the project does not qualify for the ITC or PTC. o This price was used in project evaluation to ensure that any PPAs CPA signs will not be at a price that exceeds the DAC-GT price cap.
Proposers were also required to provide price reducers in the event that the project does qualify for the ITC or PTC.
o The percentage decrease that ITC or PTC price reducers provide relative to the PPA Offer Price was a qualitative evaluation factor in this RFO.
Most Power Share proposers state that they intend to safe harbor equipment in 2025 to qualify for ITC benefits. If they do qualify, then the PPA price that CPA pays will be reduced according to the offered ITC or PTC price reducer.
Agenda Page 48
RFO Eligibility Requirements
The project must be located within or no more than five miles from an eligible DAC census tract
The project must be a new, RPS-eligible facility with a nameplate capacity between 500 kW and 11 MW
The project must have an online date no later than December 31, 2028 The project must have completed a Phase I Interconnection Study (or equivalent) or have received a positive determination of Fast-Track eligibility 10 Agenda Page 49
Shortlist
Recommendation
11 Agenda Page 50
Shortlisting Considerations
12 In forming its recommendation, the review team evaluated the projects based on the review criteria specified in the RFO protocol. Additional context regarding the review team’s evaluation is also provided below:
Project size - smaller projects were preferred to reduce the risk of individual project failure to the DAC-GT program.
Environmental Stewardship – Projects with low environmental scores were excluded from consideration.
Program Allocation – the review team recommends shortlisting more than the remaining program capacity to account for potential project failure. Should all projects be successful, capacity over the program cap would be part of CPA’s regular (e.g. not Power Share) portfolio, without CPUC above-market cost recovery.
Land Use – The review team requested that staff verify that the projects located in Ventura County are a permissible use under the County non-coastal zoning ordinance. Staff has confirmed that these projects are permissible and will require a Conditional Use Permit and approval from the Ventura County Planning Commission.
o The three local projects are proposed to be built on parcels zoned “Agriculture Exclusive” where low-value citrus is currently cultivated. As permitted by ordinance, the developer intends to convert a small portion of each lot (about 20 acres) to solar “agrivoltaics” (e.g. grazing or low-growing crops) and keep the rest of the plot in its existing cultivation. See slide 18 for representative examples of “agrivoltaics.” Project location/price – After excluding the largest project and those with low environmental scores, the lowest priced projects were selected, which resulted in a mix of local and non-local projects. The review team also recommended putting third local project on the waitlist.
Agenda Page 51
Shortlist Recommendation
The review team recommends shortlisting the lowest price offers from projects which were ranked “neutral” to “high” under the evaluation criteria. This results in two local projects being shortlisted.
The review team recommends waitlisting the third, local project. 13 Review Team
Recommendation
NPV
Quartile Developer Project Location
Capacity
(MW) COD Environmental Workforce Project Location
Development
Score
Price
Reducers
Shortlist 2 B E San Bernardino County 4.99 12/31/2027 Neutral High Medium High 0.76 - 1.00% Shortlist 3 D F Ventura County 4 6/15/2027 Neutral High High Medium 1.01 - 1.25% Shortlist 3 C G Tulare County 3 9/30/2028 Neutral Medium Medium Medium 0.76 - 1.00% Shortlist 3 D H Ventura County 2.46 6/15/2027 Neutral High High Medium 1.01 - 1.25% Waitlist 4 D J Ventura County 4 6/15/2028 Neutral High High Medium 1.01 - 1.25% Agenda Page 52
Action Requested
14 Approve the 2025 Power Share RFO shortlist and waitlist 2025 Power Share RFO Shortlist
Project Capacity (MW) Commercial Online Date Location
E 4.99 12/31/2027 San Bernardino County
F 4.00 6/15/2027 Ventura County
G 3.00 9/30/2028 Tulare County
H 2.46 6/15/2027 Fillmore, Ventura County
14.45 2025 Power Share RFO Waitlist
Project Capacity (MW) Commercial Online Date Location
J 4.00 6/15/2028 Ventura County
DAC-GT Remaining Program Capacity Shortlist Short/(Long) Position
12.545 MW 14.450 MW (1.905) MW
Agenda Page 53
Next Steps
15 Agenda Page 54
Next Steps
16 Date Action
August 29 Bidders notified of shortlist status
September – November PPA negotiations
October – December Board consideration of PPAs
December Executed PPAs submitted to CPUC for approval*
*CPA is required to submit PPAs for CPUC approval within 180 day of bidders’ receipt of shortlist notification; CPA is seeking to submit PPAs for approval before the end of the year due to CPUC program changes Agenda Page 55
Appendix
Agenda Page 56
Solar Agrivoltaics Examples
Agenda Page 57
Evaluation Criteria
Individual projects received a rank for each of the following criteria:
In addition, CPA included the following workforce development requirements for all projects:
• Prevailing wage requirements and targeted hire commitments for all projects, with a preference for Project Labor Agreements (PLAs) Other Preferences – CPA will prioritize projects that leverage other government funding, or that provide evidence of support or endorsements from local climate initiatives.
ITC and PTC - CPA has a preference for projects that will qualify for the ITC or PTC and that offer ITC/PTC PPA Offer Price reducers that substantially share the ITC/PTC cost savings in the event the project qualifies for tax credits . For purposes of evaluating ITC or PTC benefits to CPA, projects will be ranked based on the percentage decrease ITC or PTC reducers offer relative to the PPA Offer Price Environmental
Stewardship
Workforce
Development
Quantitative
Evaluation
Development
Score
Project
Location
Other
Preferences
19 ITC and PTC
Agenda Page 58
Projects will be ranked high and medium based on the
following prioritization:
• In Los Angeles and Ventura counties
• Other counties within California
Project Location –DAC-GT
HIGH
MEDIUM
20 Agenda Page 59
Development Risk
Projects will be ranked from High to Low
• The development risk metric is a composite rank based on a number of factors impacting project risk:
• Site control
• Interconnection status
• Environmental screens
• Land use and permits
• Project financing
21 Agenda Page 60
Environmental Stewardship
Projects are ranked high, medium, neutral, and low based on the following prioritization:
HIGH
MEDIUM
LOW
NEUTRAL
• Demonstrates multiple benefits (provides additional societal, health, economic, water saving, or environmental benefits beyond the climate and GHG reduction benefits of renewable energy)
• Located in an area designated as a preferred renewable energy zone and received required land use entitlement permits
• Project does not demonstrate either preference or avoidance criteria • Project is located in a high conflict area
22 Agenda Page 61
Projects will be ranked high and medium based on
the following prioritization:
• The project will use targeted-hire, union labor, or multi-trade project labor agreements (including requirements for state-apprenticeship graduates)
• The project does not have a labor agreement, but can
demonstrate prevailing wage, union labor, and targeted hire commitments
Workforce Development
HIGH
MEDIUM
23 Agenda Page 62
Other Preferences
24 • CPA will prioritize projects that leverage other government funding such as a state Community Services Department (“CSD”) grants, or that provide evidence of support or endorsements from programs such as Transformative Climate Communities or other local climate initiatives
Agenda Page 63
ITC and PTC
25 • CPA has a preference for projects that will qualify for the ITC or PTC and that offer ITC/PTC PPA Offer Price reducers that substantially share cost savings in the event the project qualifies for tax credits . For purposes of evaluating ITC or PTC benefits to CPA, projects will be ranked based on the percentage decrease ITC or PTC reducers offer relative to the PPA Offer Price.
Agenda Page 64
Quantitative Evaluation
• All projects were assessed for market performance against the relevant project Pnode
• Projects were valued for their energy market, renewable energy credit, and Resource Adequacy (if applicable) revenues
26 Agenda Page 65