Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, September 18, 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
Ventura County Government Center
CEO Point Mugu Room
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Sierra Madre City Hall
Council Chambers
232 W. Sierra Madre Blvd.
Sierra Madre, CA 91024
Camarillo City Hall
Council Office
601 Carmen Drive
Camarillo, CA 93010
Carson City Hall
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
Beverly Hills City Hall
Council Office, 4th Floor
455 N. Rexford Drive
Beverly Hills, 90210
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 Agenda Page 1
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 August 21, 2025, Executive Committee Meeting
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
3. Review Draft Agenda for the October 16, 2025, Board of Directors Meeting
4. Receive a Presentation on the Power Ready Program and Contract Amendment
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT REGULAR MEETING ON OCTOBER 23, 2025*
*This meeting date is outside of the Executive Committee’s usual monthly cadence.
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: Executive Committee
Subject: Approve Minutes from the August 21, 2025, Executive Committee Meeting
Date: September 18, 2025
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
Executive Committee Item 1
MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
August 21, 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:
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
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
Ventura County Government Center
CEO Point Mugu Room
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Courtyard Long Beach Downtown
Harbor Board Room
500 East First Street
Long Beach, CA 90802
Alhambra City Hall
Conference Room
111 S. First St.
Alhambra, CA 91801
Hotel Champlain
60 Battery Street
Burlington, VT 05401
CALL TO ORDER & ROLL CALL
Chair Klein Lopez called the meeting to order at 1:32 p.m. and Annie Mendoza, Deputy 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
Camarillo Susan Santangelo Committee Member Remote
Agenda Page 4
Carson Reata Kulcsar
Alternate Committee
Member Remote
Hawthorne Absent
Los Angeles County Rita Kampalath Alternate Committee
Member 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 May 15, 2025, Executive Committee Meeting Motion: Vice Chair Lopez, Ventura County
Second: Committee Member Santangelo, Camarillo
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, reported on the Power Share projects, the AC rebate program launch, and the enrollment status of the cities of La Cañada Flintridge, Port Hueneme, and Lynwood. Mr. Bardacke also reviewed the Board and Committee scheduling and noted that the Los Angeles Business Council will be recognizing the SunZia project participants at a sustainability awards event in October.
3. Review Draft Agendas for September 4, 2025, Board of Directors Meeting Mr. Bardacke described the consent agenda items, including the Equitable Building Decarbonization grant funding MOU and the Solar Star 3 and 4 power purchase agreements. For the regular agenda, the Board would review an additional power purchase agreement with Sunzia.
Committee Member Gold inquired about the cost of wind energy and how much CPA wants to acquire, and staff responded they are in the middle of an integrated resource planning cycle, and a numerical value of targeted wind acquisition will be available later in the year. Also, since wind delivers at night, its value to CPA is often higher than solar even if the MW costs of solar are lower. Staff said they could provide Committee Member Gold with additional information about acquisition of different kinds of power. Staff clarified for Chair Klein Lopez that CPA receives “test” energy when a project is coming online, but that it is at a discounted rate because Resource Adequacy (RA) is not included.
Executive Committee Item 1
Agenda Page 5
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
Mr. Bardacke acknowledged the work of Karen Schmidt, Senior Director of Rates and Strategy, coordinating with the Cities of Cudahy and Fillmore, which are proposed to be CPA member agencies with service starting in 2027 and bring CPA membership up to 40 jurisdictions. He described board priorities for expansion, which are met by the two cities, and noted the total customer expansion would be 11,331 or 1.1% of CPA’s customer base. The completed feasibility studies conclude the overall financial impacts to CPA will be minimal. With the addition of these two cities, CPA would fill out its service territory and strengthen its market position and political impact. Mr. Bardacke presented the projected first-year financial impact of adding the new cities, with the analysis making assumptions about SCE generation rates, a preferred option of Clean Power, and total bill comparisons at current levels. Mr. Bardacke reviewed the expansion timeline and processes. During 2026, CPA would secure energy resources to serve the new load at the same time conducting community outreach and education.
Staff clarified for Committee Member Crosswhite that a city has never joined and then left CPA, but that there is a process for doing so; it involves the city reimbursing CPA for the net costs of energy procured for departing customers.
Committee Member Crosswhite commented that the Board should consider the length of meetings if the number of CPA member agencies reaches 40. In response to Committee Member Parkhurst’s inquiry about the electricity demographics, staff stated that both are mostly residential electricity users and in Cudahy approximately half of the residential customers are low-income. Neither has significant industrial load.
Motion: Committee Member Parkhurst, Sierra Madre
Second: Vice Chair Lopez, Ventura County
Vote: The Executive Committee unanimously recommend to the Board Directors that both cities be invited to join CPA.
5. Receive a Presentation on the TOU-SMART Default Pilot Proposal and Provide Feedback
Karen Schmidt, Senior Director of Rates and Strategy, presented the TOU-SMART rate option, which provides a lower daytime (8am-4pm) rate and higher overnight (9pm-8am) rate to encourage customers to charge EVs during the day when solar power is abundant. 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 already on the standard TOU-D-PRIME rate onto the new rate to assess its impact on customer bills, energy costs and GHG emissions. 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 rate design recommendations to support load shifting.
Ms. Schmidt explained that 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 low enrollment and may limit CPA’s ability Executive Committee Item 1
Agenda Page 6
to assess the rate’s impact because a sample size of at least 2,000 to 3,000 is needed. A default pilot program would allow evaluation of the impact of price signals on customer load-shifting and costs. The program would include a buffer for opt-outs and help inform other new rates and programs. Ms. Schmidt described how the participants would be selected, educated, notified, and discussed the proposed implementation timeline.
In response to Committee Member questions, staff clarified the following: Selected customers who will be defaulted into the pilot program have self-selected as having a large electricity load at home. Staff are confident that the sample size will yield the necessary data to appropriately design the rate. Staff is discussing internally the benefits and disadvantages of extending bill protections, including how it would affect customer behavior. If a customer dropped out of the program mid-year, they would receive bill protection only for the period they were enrolled. The program design would protect against worst case scenarios. The Board of Directors will receive program updates at the one- and two-year marks but notable results will be shared promptly. Regarding communication, customers will receive an email mid-year and another at the year’s end.
Committee Members Gold and Crosswhite provided feedback on the program’s sample size, noting that those who do not work from home during off-peak hours may not be able to take advantage of the lower rates. Committee Members Gold and Kulcsar also suggested that staff ensure that customers understand that they may opt out of the pilot program while remaining a CPA customer. Committee Member Kulcsar requested that staff report back on the process by which customers who were defaulted into the program would be returned to their former rates if the program wasn’t a good fit for them. Regarding Committee Member Maloney’s question about the program goal, staff clarified that it aims to provide an incentive for customers to shift their load. Some customers already charge during the day, so the rates will better reflect the cost of CPA to provide the electricity. Committee Member Maloney encouraged staff to find effective ways to inform customers of the default enrollment.
Committee Member Santangelo stated concern about opting-in customers who have not expressed an interest in different rates. Regarding Committee Member Parkhurst’s comment about SCE communication, staff noted that CPA and SCE do share information about communications being sent to each other’s customers and CPA will ensure that customers can differentiate which entity is offering the pilot program. Staff clarified for Chair Klein Lopez that the rate was designed to be revenue neutral. After data is obtained through this pilot program, rates might be adjusted to better reflect behavior.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Chair Klein Lopez adjourned the meeting at 3:07 p.m.
Executive Committee Item 1
Agenda Page 7
Staff Report – Agenda Item 2
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Oral Update from the CEO on CPA Operations
Date: September 18, 2025
The CEO will provide an oral update on CPA operations.
Agenda Page 8
Staff Report – Agenda Item 3
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Review Draft Agenda for October 16, 2025, Board of Directors Meeting
Date: September 18, 2025
Staff will provide an overview of the proposed agenda items for the October 16, 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 October Board meeting.
Energy Prepay Bond Contractors
CPA is preparing for its next tranche of energy prepay bond issuances, contemplating up to three new issuances by December 31, 2026. To assist in this preparation, service providers need to be contracted. Staff will propose contracts with the following service providers:
• Municipal Capital Markets, Inc. (MCM) to serve as CPA’s municipal financial advisor (MFA) to support structuring and execution.
• Chapman & Cutler (Chapman) to serve as CPA’s Prepay Counsel to advise CPA on legal matters relating to the prepay transactions and assist with contract negotiation and documentation.
These are the same service providers that supported CPA on its two prepay transactions completed in 2023 and its three prepay transactions completed in 2024. The contract with Agenda Page 9
Executive Committee Item 3
MCM will be substantially similar to that approved by the Board in May 2024, with compensation to MCM based on a fixed per-transaction fee and a total not-to-exceed amount. The contract with Chapman will establish a total not-to-exceed amount. Both amounts will be payable by the California Community Choice Financing Authority (CCCFA) through bond proceeds in the event of successful completion of one or more prepay transactions.
Separately, candidate banks capable of serving as the Underwriter & Prepaid Supplier to execute the prepay transactions have been identified. In November 2025, staff anticipates presenting the Board with recommended Underwriter & Prepaid Suppliers, sets of pro-forma energy prepay contracts, and resolutions with recommended energy cost savings parameters for up to three energy prepay transactions.
Creative Services Contract
CPA continues to grow its customer program offerings and elevate its brand to build awareness and engagement. To support increased creative development needs across our marketing and outreach efforts, a one-year Professional Services Agreement (PSA) with Help Good LLC for a not-to-exceed amount of $348,300 for creative services will be presented to the Board. Help Good, a Los Angeles-based social impact marketing agency, will provide creative support to accomplish a variety of needs including building visibility for CPA’s suite of customer programs, developing enrollment campaigns, creative and copy development for paid media production - including social media, short form video, landing pages, and emails - as well as cultural adaptation for program recruitment campaigns to foster engagement with CPA’s varied customer base. Funds for this engagement are included in the FY 2025-26 board-approved budget.
Approve and Authorize Workforce Development MOU
On November 7, 2024, the Board approved funding for Phase 3 of the Workforce Development program. The program included plans to partner with two Multi-Craft Core Curriculum (MC3) pre-apprenticeship programs in Los Angeles County and to investigate options to partner with an MC3 provider in Ventura County. On February 6, 2025, the Agenda Page 10
Executive Committee Item 3
Board approved MOUs with Flintridge Center and Women in Non-Traditional Employment Roles (WINTER) for MC3 pre-apprenticeship programs in Los Angeles County. The first cohorts of trainees in Los Angeles County sponsored by CPA have graduated.
Staff has been conducting outreach to numerous MC3 stakeholders and providers in Ventura County over the past several months and have identified a set of program partners, including the Workforce Development Board of Ventura County, which currently partners with the Tri-Counties Building Trades and the Laborers (LiUNA) to provide MC3 training. CPA is in the process of negotiating with the WDBVC on a 3-year MOU with WDBVC to provide MC3 training, supportive services, stipends, and job placement via its partners in Ventura County. Should those negotiations be successful, the MOU will be submitted for approval at the October Board meeting.
REGULAR AGENDA
The following items are recommended for inclusion on the Regular Agenda of the October Board meeting.
Power Ready Contract Amendment
This item will be subject to a separate presentation to the Executive Committee.
Implementation of “Base Service Charge” by SCE
Beginning in mid-November, delivery-side electricity rates will be restructured to include a new fixed “Base Service Charge” combined with reduction in kwh-based (or volumetric) delivery rates. This restructuring is the outcome of the legislative directive in AB205 (2022) that called for the establishment of an Income-Based Fixed Charge. The fixed charge will be as follows:
• CARE customers: $6/month
• FERA customers/Residents of Deed Restricted Affordable Housing: $12/month • All other residential customers: $24/month
Agenda Page 11
Executive Committee Item 3
While the net effect of the change on IOU revenue is neutral, the change is expected to result in higher overall bills for low-usage customers and lower overall bills for both low-income and higher-usage customers. In general, solar NEM/NBT customers will see their bills go up as well, although the impact will vary greatly depending on their annual net usage.
While the change is taking place on the delivery side of the bill and will have a de minimis impact on CPA’s bill comparisons with SCE, it will provoke questions from customers. In addition, this change is emblematic of a broader policy debate that pits across-the-board energy efficiency efforts (which rewards low consumption) with electrification and beneficial load-shifting efforts (which incentivizes higher consumption at certain times of the day). It also reflects the usage of CARE/FERA status as a proxy for eligibility for discount programs, when those slightly above those income levels also have demonstrated need, particularly in high-cost coastal California.
So that Board members will be prepared to talk about the Base Service Charge in their communities and so that they can be aware of the policy and implementation dilemmas in this area, staff will make a presentation on this topic as an information item.
Legislative Roundup
Several bills that will impact the electricity sector are expected to pass over the weekend of September 13-14. These include SB 254 (wildfire fund replenishment, changes to cost recovery of wildfire prevention investments, public financing of transmission), AB 825 (regionalization of electricity markets), and SB 840/AB 1207 (extension of cap-and-trade to 2045). Staff will make a presentation on the impact to CPA and its customers of these and other bills.
TO BE DETERMINED
TOU Smart Pilot
On September 4, the Board received a presentation and provided feedback on CPA staff’s proposal for a default TOU-SMART pilot to test the impact of TOU rate differential Agenda Page 12
Executive Committee Item 3
on customer behavior and CPA energy costs. Staff is incorporating Board member feedback into the pilot design and will bring the final pilot proposal to the Board for approval. Feedback to be addressed includes:
• Pilot participant selection: Selection protocol will ensure that the pool of pilot participants includes a representative sampling of various customer groupings across CPA’s service territory, e.g., climate zones, housing types, demographics, and other relevant, observable characteristics, so as to assess the impact of these and other factors on customer response (or lack of response) to the new price signals. Post-pilot survey data will be gathered to evaluate the impact of additional factors such as work patterns and use of automated technologies. • Customer education: Staff will provide additional details on plans to educate customers on the benefits of load shifting and how they can benefit from the new rate, to provide tools for customers to estimate potential bill savings from load shifting, and to provide ongoing feedback on their performance over the course of the pilot.
• Customer protections: In addition to providing bill protection for the two-year duration of the pilot, pilot participants for whom the new rate is consistently more expensive will be automatically disenrolled from the new rate at the end of the pilot.
Staff is also investigating potential changes to the TOU-Smart rate itself to increase the cost differential between daytime and nighttime usage so as to increase the savings potential for those who are able to shift demand and enhance marketing efforts.
ATTACHMENT
1. Draft October 16, 2025, Board of Directors Agenda
Agenda Page 13
Executive Committee Item 3
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, October 16, 2025
2:00 p.m.
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the September 4, 2025, Board of Directors Meeting
2. Approve Contracts for Service Providers for Future Energy Prepay Transactions
3. Approve Contract for Creative Services
4. Approve and Authorize the Chief Executive Officer to Execute the Workforce Development MOU(s)
5. Receive and File Bill Positions Monthly Report
6. Receive and File Monthly Community Advisory Committee Report
REGULAR AGENDA
Action Items
7. Power Ready Contract Amendment
8. TOU-Smart Pilot – TBD
Information Item
9. Implementation of Base Service Charge
10.Legislative Roundup
COMMITTEE CHAIR UPDATES
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT MEETING ON NOVEMBER 6, 2025
Agenda Page 14
Staff Report – Agenda Item 4
To: Executive Committee
From: John McNamara, Director, Structured Contracts
John Spector, Program Manager, Resiliency Programs and Grants Matthew Langer, Chief Operating Officer
Reviewed by: Nancy Whang, General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Power Ready Program and Contract Amendment
Date: September 18, 2025
Receive a presentation on the Power Ready Program and contract amendment.
ATTACHMENTS
1. Power Ready Amendment Presentation
Agenda Page 15
Power Ready
Amendment
Executive Committee
September 18, 2025
Agenda Page 16
Power Ready Program Background
2 CPA’s Power Ready program is a community benefit program offered to CPA’s member agencies to support their community critical sites to be energy-resilient by installing solar-plus-storage systems as a clean energy backup source that is available when a power outage occurs.
CPA’s Board of Directors approved the first round of the Power Ready multi-site Power Purchase Agreement (PPA) on February 1, 2024, with Coast Energy, for systems totaling 1.15 megawatts (MW) of solar photovoltaic system capacity paired with 1.3 MW of battery energy storage system (BESS) capacity collectively across 8 agencies at 11 sites.
CPA launched recruitment for Power Ready Round 2 in February 2025 and is accepting RFIs from member agencies and critical community sites through November 1, 2025. Interest level has been significant.
Agenda Page 17
Power Ready Round 1 Progress
3 This table shows the status of each Power Ready Round 1 project. While some projects are well advanced with Notice to Proceed to Engineering, Procurement, and Construction, others are less advanced and still in the process of negotiating their Site Lease Agreements with the member agencies.
Member Agency
SGIP
Incentive
Reserved
Site Lease
Agreement
Signed
Notice to
Proceed EPC
SCE Interconnection
Application Status Permit Status
City of Agoura Hills Submitted; advanced
to Technical Review Preparing submission
City of Beverly Hills
City of Oxnard Submitted; advanced to
Technical Review Preparing submission
City of Sierra Madre Preparing submission
City of South Pasadena Preparing submission
City of Westlake Village
County of Los Angeles
(3 Projects)
County of Ventura
(2 Projects)
Agenda Page 18
Power Ready Round 1 Challenges
4 The current projects are under a PPA delivery model, whereby the developer owns the PV and BESS systems at each member agencies site and contracts with CPA for the energy.
To issue an RFO, CPA must first agree to an MOU with the member agency. Then after the developer is selected via the RFO, they must negotiate a Site Lease Agreement (SLA) with the member agencies to build, own, and operate the Power Ready systems at participating sites.
Each participating Power Ready member agency must follow their internal decision-making processes to approve first the MOU with CPA and then the SLA with Coast Energy, which has resulted in significantly longer timelines than anticipated.
SLAs have been executed with member agencies for seven projects. However, negotiation and execution of these agreements extended for seven to sixteen months after PPA execution; negotiations are continuing with two member agencies for four sites.
As a result, Coast is no longer able to meet the Guaranteed Commercial Operation Dates for the projects.
Additionally, interest rates, labor costs, roofing costs and equipment costs increased since the PPAs were executed and affected the overall economics of the projects resulting in a price increase request from Coast.
Agenda Page 19
Coast PPA Amendment Requests
5 As a result of the challenges, Coast Energy has requested amendments to the PPAs to ensure the projects remain viable.
Price Increase – Coast Energy is requesting a price increase of between 2.5% and 5%.
Milestone Extensions – Due to expected delays in receiving long-lead time equipment, interconnection approvals, and SLA execution, Coast Energy has requested extensions to the Guaranteed Construction Start Dates (GCSD) and the Guaranteed Commercial Operation Dates (GCOD) associated across all projects. All GCODs would be extended to Q4 2026, but some projects may come online earlier.
Roof repairs - The current PPAs have language which increases the Renewable Rate to cover roof repair costs that exceed a benchmark cost but require CPA to agree to such cost increases. For three of the eleven sites, the developer forecasts the likelihood of additional roof repair costs above the benchmark in the PPA, triggering an additional price increase above the renewable/storage rate.
Agenda Page 20
Power Ready Next Steps
6 Staff is continuing negotiations on the PPA amendments and expects to bring the amendment to the Board for consideration in October.
LA County and Beverly Hills SLAs should be agreed to by then or contract amendments may not be presented to the Board for those sites in October.
Separately, staff will be seeking guidance at the upcoming Board Retreat to explore if asset ownership should be considered as an alternative approach to accelerate project delivery for the next part of the Power Ready portfolio. Under this structure, CPA would contract with an Engineering, Procurement, and Construction (EPC) vendor to design and build the systems and Operations and Maintenance (O&M) vendors to maintain the systems.
o Benefits of the EPC model include giving CPA more control over the project’s economics and construction timelines and allowing CPA to directly manage interactions with member agencies at the host sites
o Project ownership comes with different financial and operational and legal risks that will also be discussed at the Board Retreat
Agenda Page 21