Energy Planning & Resources Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, September 24, 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 C
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
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CALL TO ORDER & ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the August 27, 2025, Energy Committee Meeting
2. Receive and File August 2025 Risk Management Team Report
REGULAR AGENDA
3. Oral Update from the Vice President of Power Supply
4. Approve the 2025 Clean Energy and Reliability Shortlist (Slide 17) and Waitlist (Slide 18) as Recommended by the RFO Review Team
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING OCTOBER 29, 2025
*This meeting date is outside the Energy 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: Energy Planning & Resources Committee
Subject: Approve Minutes from the August 27, 2025, Energy Committee Meeting
Date: September 24, 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, August 27, 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 12:16 p.m. Annie Mendoza, Deputy Clerk of the Board, conducted roll call.
ROLL CALL
Alhambra Jeff Maloney Committee Member Remote
Arcadia 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 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 Motion: Committee Mahmud, South Pasadena
Second: Committee Member Byers, West Hollywood
Vote: The consent agenda was approved by a roll call vote
REGULAR AGENDA
4. Oral Update from the Vice President of Power Supply
Lindsay Descagnia, Vice President, Power Supply, reported on the Innovation Solicitation program; CPA received four offers and the review team requested more information on two of the proposals with the intention of a second review session. Chair Parkhurst and Committee Member Lesser expressed gratitude for all the work being done by staff and review teams on this effort.
5. Approve the 2025 Power Share Shortlist and Waitlist as Recommended by the RFO Review Team
Alexandra Caryotakis, Senior Advisor, Structured Contracts, discussed CPA’s Power Share program, in which CPA procures energy from small-scale renewable projects within Disadvantaged Communities (DACs) to provide 100% renewable energy to low-income customers at a 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.
The review team recommends shortlisting the lowest price offers from projects ranked “neutral” to “high” under the evaluation criteria, which results in two local projects being shortlisted. The review team also suggests waitlisting the third local project. The successful bidders will be notified at the end of August, and PPA negotiations will begin in September, with finalized contracts submitted to the CPUC in December.
Committee Member Mahmud asked about the development score criteria and staff clarified that considerations include interconnection and permitting progress, as well as the developer's experience and reputation. Staff noted that CPA has previously entered into contracts with some of the developers on the shortlist, and some of the projects are connecting at the distribution level. Committee Member Energy Planning & Resources Committee Item 1
Agenda Page 5
Byers inquired about projects not considered because of a low environmental score, and staff said three out of 10 proposed projects were not recommended due to the scoring in that criteria. Chair Parkhurst praised staff for the program which benefits low-income customers and asked about the projects installing solar panels on agricultural land. Staff stated that it may be possible to have low-profile crops or grazing under the panels, but citrus crops would not be appropriate on the acreage.
Motion: Committee Member Mahmud, South Pasadena
Second: Committee Member Chen, Temple City
Vote: Item 5 was approved by a roll call vote.
COMMITTEE MEMBER COMMENTS
Chair Parkhurst noted that for the first time in history, renewable energy, especially solar, is now cheaper than building fossil fuel plants. As much as 98% of all new global and U.S. electricity generating capacity in the last year has come from solar and wind.
ADJOURN
Chair Parkhurst adjourned the meeting at 12:47 p.m.
Energy Planning & Resources Committee Item 1
Agenda Page 6
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 August 2025 Risk Management Team Report Date: September 24, 2025
August 2025 RMT REPORT
Key Actions
• Reviewed the counterparty credit exposure summary
• Reviewed May 2025 day-ahead load forecast performance • Reviewed June and July 2025 market performance
• Reviewed energy positions and approved 2025-2029 hedge proposal for monthly RFO
• Reviewed 2025 - 2030 Renewable and Carbon-Free positions • Reviewed recent impacts to the 2025 Renewable position • Reviewed PCC1 purchase and sales strategy
• Reviewed 2025-2026 SunZia test energy forecast
• Reviewed the 2025 - 2027 slice of day RA position
• Reviewed CF purchase and sales strategy
• Reviewed COD impacts on RA compliance
• Reviewed RA purchase and sales strategy
• Reviewed Energy Risk Management Policy (ERMP) compliance for RA, REC, CF, and Energy
• Reviewed Long-Term Energy Contract amendments and terminations • Reviewed July and August 2025 CRR Allocations
• Reviewed the Negative REC Price strategy
Agenda Page 7
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 8
Staff Report – Agenda Item 3
To: Energy Planning & Resources Committee
From: Lindsay Descagnia, Vice President, Power Supply
Subject: Oral Update from Vice President, Power Supply
Date: September 24, 2025
The VP will provide an oral report on CPA energy procurement activities.
Agenda Page 9
Staff Report – Agenda Item 4
To: Energy Planning & Resources Committee
From: John McNamara, Director, Structured Contracts
Reviewed by: Lindsay Descagnia, Vice President, Power Supply Matthew Langer, Chief Operating Officer
Nancy Whang, General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: 2025 Clean Energy and Reliability RFO Shortlist and Waitlist Approval
Date: September 24, 2025
RECOMMENDATION
Approve the 2025 Clean Energy and Reliability RFO shortlist (slide 17) and waitlist (slide 18) as recommended by the RFO Review Team.
ATTACHMENT
1. 2025 Clean Energy and Reliability RFO Shortlist and Waitlist Presentation Agenda Page 10
2025 Clean Energy and
Reliability RFO
Shortlist and Waitlist
Approval
Energy Committee
September 24, 2025
Agenda Page 11
On July 28, CPA received 106 proposals for the 2025 Clean Energy and Reliability RFO, a 33% increase over the 2024 Clean Energy and Reliability RFO. 25 proposals have since withdrawn for various reasons, leaving 81 available.
The majority of proposals received were for either Standalone Storage or Renewable Generation + Storage.
For Renewable Generation, all proposals were for solar aside from two wind proposals.
Staff has established Renewable Energy and Resource Adequacy (RA) procurement targets for this RFO.
There are enough viable projects proposed in this RFO for CPA to meet or exceed the Renewable Energy and Resource Adequacy procurement targets.
Viable projects, especially solar and wind projects, are likely to increase in price over the next RFO cycles as developers navigate the uncertainty of the current landscape including reduced or eliminated federal tax credits, uncertain tariff costs, and interconnection delays.
On September 12, a Review Team composed of four Energy Committee members and CPA Staff including the CEO, COO, and VP of Power Supply met to produce a shortlist and waitlist recommendation. The purpose of today’s presentation is for Energy Committee to consider the Review Team’s recommendation. 2 Executive Summary
Agenda Page 12
Requested Action
3 Approve the 2025 Clean Energy and Reliability RFO shortlist (Slide 17) and waitlist (Slide 18) as recommended by the RFO Review Team.
Agenda Page 13
Agenda
Background
Offer Overview
Shortlist Proposal (Slide 17)
Waitlist Proposal (Slide 18)
Appendix
Agenda Page 14
4 Background
Agenda Page 15
2025 Clean Energy and Reliability RFO Overview
The purpose of the 2025 Clean Energy and Reliability RFO is to solicit competitive proposals to fill a 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 Power Purchase Agreement (PPA) Start Dates to range from January 1, 2029 to December 31, 2032 to best align with CPA’s portfolio needs.
Similar to the 2024 RFO, 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. CPA fast-tracked one project and is still awaiting feedback from the seller about whether it wants to enter exclusivity. This project is included as part of the shortlist recommendation.
CPA implemented new features in this RFO that allowed proposers to offer price adders if tariff costs exceed a benchmark tariff cost and price reducers if the proposer receives tax credits above a benchmark tax rate identified by the proposer. CPA has added two new qualitative evaluation criteria to inform proposers how CPA will consider these criteria in their evaluation of offers.
Investment Tax Credit (ITC) and Production Tax Credit (PTC) Price Reductions – ranks projects based on the percentage decrease for ITC or PTC price reducers relative to the Contract Price offered.
Tariff Price Adjusters – ranks project based on the percentage increase in Tariff Price Adjusters relative to the Contract Price offered.
Agenda Page 16
6 Targets are developed using a ratable procurement strategy, meaning CPA would need to procure equivalent volumes over the next three years to meet its procurement goal and fill 95% of its Renewable Energy position and 80% of RA position with Long-Term Contracts.
This approach sets an annual procurement target of 450,000 MWh of Renewable Energy and 371 MW of Resource Adequacy for 2025 and the next two years.
The execution of the Board approved 125 MW SunZia wind PPA reduced both the Renewable Energy and RA Procurement Targets for this RFO.
The remaining ratable procurement targets for this RFO are 55,000 MWh of Renewable Energy and 339 MW of RA.
7 RFO Procurement Targets
Renewable Energy
(MWh)
Resource
Adequacy (MW)
Ratable Procurement Target 450,000 371
125 MW SunZia Wind PPA 395,000 32
Remaining Ratable Procurement Target 55,000 339
Agenda Page 17
Shortlisting and Waitlist Approach
In forming its recommendation, the Review Team evaluated projects based on the criteria specified in the RFO Protocol. Additional context regarding the Review Team’s evaluation is also provided below:
Deliverability: The Review Team preferred projects with FCDS secured, as also outlined in the RFO Protocol.
Environmental Stewardship and Project Location: Projects with low Environmental Stewardship scores or low Project Location scores were deprioritized.
Quantitative Evaluation: Projects were prioritized with higher RA Normalized NPV above those with lower RA Normalized NPV.
Tax Credits: The Review Team considered whether procuring above this RFO’s Renewable Energy procurement target is warranted in anticipation of dwindling opportunities to secure projects that are eligible for tax credits in future RFOs.
Because of uncertainty whether future RFOs will see as many viable projects that qualify for the Investment Tax Credit (ITC) or Production Tax Credit (PTC), and the possibility that pricing in future RFOs will be higher as a result, the Review Team recommends a shortlist that is greater than the ratable procurement targets established for the 2025 Clean Energy and Reliability RFO.
Given the uncertain nature of contract negotiations, the Review Team also recommends a robust waitlist of projects to use as backup in case projects on the shortlist should become unavailable.
Agenda Page 18
8 Offer Overview
Agenda Page 19
RFO Initial 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
10 * 25 proposals have withdrawn so only 81 proposals remain eligible to date Agenda Page 20
Many Offers are Competitive, 60% are NPV Positive
$0 NPV
Agenda Page 21
11 Evaluation Criteria
Projects are ranked using CPA’s standard criteria (see Appendix for detailed descriptions) Natural Gas Tolling proposals have a modified evaluation criteria (see Appendix for detailed descriptions), however no Natural Gas Tolls are a part of either the recommended shortlist or waitlist.
Environmental
Stewardship
Workforce
Development
Quantitative
Evaluation
(Value)
Development
Risk
Project
Location
Benefits to
DACs
12 Tariff and Tax
Credit Price
Adjuster
Agenda Page 22
Standalone Storage is the Highest Value by Technology
when Procuring RA
RA Normalized NPV ($/Average MW RA)
$0 NPV
Agenda Page 23
13 Renewable Generation + Storage is the Highest Value by Technology When Procuring Renewable Energy
14 $0 NPV
Agenda Page 24
Shortlist and
Waitlist
Recommendation
Agenda Page 25
Shortlist and Waitlist Summary
Shortlist
Resource Type Project
Count
Solar
MW
Storage
MW MWh
Reduction
in RA MW
Target
Renewable
Generation +
Storage
2 400 400 1,135,000 ~155
Standalone
Storage 2 NA 500 NA ~90
Total 4 400 900 1,135,000 245
Waitlist
Resource Type Project
Count
Solar
MW
Storage
MW MWh
Renewable Generation +
Storage 3 475 466 1,370,000
Standalone Storage 7 NA 1,425 NA
Total 10 475 1,891 1,370,000
• The recommended shortlist contains two renewable
generation plus storage projects, and two standalone
storage projects (one of the standalone storage projects will be provisionally shortlisted pending additional due diligence)
• The two renewable generation plus storage projects on the shortlist are in the 3rd NPV quartile but have
guaranteed the project with ITC which may be difficult
to procure in the future
• The recommended waitlist projects consist of three
renewable generation plus storage projects and seven
standalone storage projects
Agenda Page 26
16 Shortlist Recommendation
17 Project
NPV
Qtr Online Project Type
MW Gen
Range
MW Storage
Range County
Environmental
Stewardship
Benefits to
DACs
Workforce
Development
Project
Location
Development
Score
A 3 2029
Renewable
Generation +
Storage
100-250 150-250 Tulare High High High Medium High
B 3 2029
Renewable
Generation +
Storage
100-250 150-250 Kern Neutral Medium High Medium Neutral C 1 2029 Standalone Storage N/A 150-250 Los Angeles Neutral Medium High High High D* 1 2030 Standalone Storage N/A 150-250 Los Angeles Neutral Medium High High Medium *Provisional Shortlist – CPA will offer to enter into exclusivity with this project contingent upon additional due diligence related to project viability and community benefits.
Agenda Page 27
Waitlist Recommendation
18 Project
NPV
Qtr Online Project Type
MW
Gen
Range
MW
Storage
Range County
Environmental
Stewardship
Benefits to
DACs
Workforce
Development
Project
Location
Development
Score
A 3 2029 Renewable Generation +
Storage 100-250 100-250 Kern Neutral High High Medium High B 4 2029 Renewable Generation +
Storage 0-150 0-150 Fresno Neutral High High Medium High C 4 2029 Renewable Generation +
Storage 100-250 100-250 San Bernadino Neutral Medium High Medium Medium D 1 2030 Standalone Storage N/A 100-250 Riverside Neutral Neutral High Medium High E 1 2029 Standalone Storage N/A 100-250 Los Angeles High High High High High F 1 2029 Standalone Storage N/A 50-200 San Bernardino High Medium High Medium Medium G 1 2031 Standalone Storage N/A 100-250 Los Angeles High High High High High H 1 2030 Standalone Storage N/A 100-250 Los Angeles Neutral Medium High High High I 2 2031 Standalone Storage N/A 100-250 San Joaquin Neutral Medium High Medium Medium J 2 2031 Standalone Storage N/A 100-250 San Joaquin Neutral Medium High Medium Medium Agenda Page 28
Requested Action
19 Approve the 2025 Clean Energy and Reliability RFO shortlist (Slide 17) and waitlist (Slide 18) as recommended by the RFO Review Team.
Agenda Page 29
Next Steps
20 Item Date
Proposer notified of shortlist status September 25 - 30, 2025 Power Purchase Agreement (PPA) and Energy Storage
Agreement (ESA) brought to the Board for approval
December 2025 – March 2026
Agenda Page 30
APPENDIX
Agenda Page 31
2025 RFO Product Types and Eligibility
22 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) is 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 32
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 33
23 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 34
24 25
Large Scale Projects Are Popular
CPA received a healthy mix of project sizes in this year's RFO Agenda Page 35
Developers are Targeting Early Online Dates
The majority of online dates are in 2029 and 2030
Agenda Page 36
26 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 37
27 Quantitative Valuation Approach
Since long-term procurement of both RECs and RA was targeted in this RFO, projects were valued using two metrics RA Normalized NPV: Net Present Value (NPV) per MW of Resource Adequacy (RA) MW. This ranking metric is more appropriate for projects that provide capacity attributes such as standalone storage, RPS + storage, and thermal projects Energy Normalized NPV: NPV per MWh of generated energy. This ranking metric is more appropriate for generation only projects.
Offers were categorized into first through fourth quartiles based on their NPV rankings (Q1-Q4) • PPA Energy Cost ($/MWh)
Energy price CPA pays the counterparty
• Storage Only: PPA Storage Cost ($/kW-month)
Capacity price CPA pays the counterparty
Benefits Costs
• Energy Revenue ($/kWh)
Earnings from selling energy generation from facility
• Resource Adequacy ($/kW-month)
Replaces RA CPA would otherwise have to purchase
• Renewables Only: Renewable Energy Credit (REC) ($/kWh) Replaces RECs CPA would otherwise have to purchase
• Storage Only: Ancillary Services (AS) ($/kWh)
Earnings from selling ancillary services
• Storage Only: Energy Revenue ($/kWh)
Earnings from selling energy (from discharging the battery) Value (NPV) = Benefits – Costs
Agenda Page 38
28 APPENDIX:
Evaluation Scoring
for Renewable
Resources
Agenda Page 39
29 Evaluation Criteria
With the exception of natural gas tolls, projects are ranked using CPA’s standard criteria
30 Environmental
Stewardship
Workforce
Development
Quantitative
Evaluation
Development
Risk
Project
Location
Benefits to
DACs
Tariff & Tax
Credit Price
Adjusters
Agenda Page 40
Quantitative Valuation Approach
Since long-term procurement of both RECs and RA was targeted in this RFO, projects were valued using two metrics RA Normalized NPV: Net Present Value (NPV) per MW of Resource Adequacy (RA) MW. This ranking metric is more appropriate for projects that provide capacity attributes such as standalone storage, RPS + storage, and thermal projects Energy Normalized NPV: NPV per MWh of generated energy. This ranking metric is more appropriate for generation only projects.
Offers were categorized into first through fourth quartiles based on their NPV rankings (Q1-Q4) • PPA Energy Cost ($/MWh)
Energy price CPA pays the counterparty
• Storage Only: PPA Storage Cost ($/kW-month)
Capacity price CPA pays the counterparty
Benefits Costs
• Energy Revenue ($/kWh)
Earnings from selling energy generation from facility
• Resource Adequacy ($/kW-month)
Replaces RA CPA would otherwise have to purchase
• Renewables Only: Renewable Energy Credit (REC) ($/kWh) Replaces RECs CPA would otherwise have to purchase
• Storage Only: Ancillary Services (AS) ($/kWh)
Earnings from selling ancillary services
• Storage Only: Energy Revenue ($/kWh)
Earnings from selling energy (from discharging the battery) Value (NPV) = Benefits – Costs
Agenda Page 41
31 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 42
32 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 43
33 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 44
34 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 45
35 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 46
36 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 47
37 APPENDIX:
Natural Gas Tolls
Evaluation Criteria
Agenda Page 48
38 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 used the following criteria when evaluating these offers:
Workforce
Development
Quantitative
Evaluation
(Value)
Plan for
Transition to
Cleaner
Operations
Benefits to
DACs
39 GHG
Emissions
Agenda Page 49
Transition to Cleaner Operations
Projects are required to explain how their project will transition to cleaner operations in their Narrative document.
Agenda Page 50
40 GHG Emissions
41 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 51
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 52
42 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
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