Finance Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Wednesday, September 24, 2025
11:00 a.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 at the following locations:
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91302
Camarillo City Hall
Administrative Conference Room
601 Carmen Drive
Camarillo, CA 93010
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Thousand Oaks City Hall
City Manager’s Office, Council Office #1
2100 Thousand Oaks Blvd.
Thousand Oaks, CA 91362
Rolling Hills Estates City Hall
Conference Room
4045 Palos Verdes Drive North
Rolling Hills Estates, CA 90274
Claremont City Hall
Council Office
207 Harvard Avenue
Claremont, CA 91711
PUBLIC COMMENT: Members of the public may submit their comments by one of the following options:
• Email Public Comment: Members of the public are encouraged to submit written comments on any agenda item to [email protected] up to four hours before the meeting. Written public comments will be announced at the meeting and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting. • Provide Public Comment During the Meeting: The General Public Comment item is reserved for persons wishing to address the Committee on any Clean Power Alliance-related matters not on today’s agenda. Public comments on matters on today’s Consent Agenda and Regular Agenda shall be heard at the time the matter is called. Comments on items on the Consent Agenda are consolidated into one public comment period. Members of the public who wish to address the Committee at CPA’s Office are requested to complete a comment card and provide it to staff. If you are attending from a remote location, please identify yourself to a CPA representative when your item is called. Each speaker is limited to two (2) minutes (in whole-minute increments) per agenda Agenda Page 1
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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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 & ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from June 25, 2025, Finance Committee Meeting
2. Receive and File August 2025 Risk Management Team Report
3. Receive and File August 2025 Investment Report
4. Receive and File July 2025 Financial Dashboard
REGULAR AGENDA
5. Oral Report from the Chief Financial Officer
6. Recommend to the Board of Directors the Selection of Municipal Capital Markets to Serve as CPA’s Municipal Financial Advisor and Chapman & Cutler to Provide Legal Advice and Counsel relating to any Prepay Transactions
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING ON OCTOBER 29, 2025
*This meeting date is outside the Finance 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: Finance Committee
Subject: Approve Minutes from the June 25, 2025, Finance Committee Meeting
Date: September 24, 2025
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
MINUTES
Finance Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, June 25, 2025, 11:00 a.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:
Camarillo City Hall
Administrative Conference Room
601 Carmen Drive
Camarillo, CA 93010
Clean Power Alliance Office
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91302
Claremont City Hall
Council Office
207 Harvard Avenue
Claremont, CA 91711
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Thousand Oaks City Hall
City Manager’s Office, Council Office #1
2100 Thousand Oaks Blvd.
Thousand Oaks, CA 91362
Rolling Hills Estates City Hall
Conference Room
4045 Palos Verdes Drive North
Rolling Hills Estates, CA 90274
CALL TO ORDER & ROLL CALL
Chair Santangelo called the meeting to order at 11:00 a.m. and Gabby Monzon, Clerk of the Board, conducted roll call.
ROLL CALL
Camarillo Susan Santangelo Committee Chair Remote
Calabasas Ed Albrecht Committee Member Absent
Carson Reata Kulcsar Committee Member Remote
Claremont Corey Calaycay Committee Member Remote
Rolling Hills
Estates
Steve Zuckerman Committee Member Remote
Santa Monica Pam O’Connor Committee Member Present
Thousand Oaks David Newman Committee Member Remote
All votes are unanimous, unless otherwise stated.
Finance Committee Item 1
Agenda Page 4
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the May 28, 2025, Finance Committee Meeting
2. Receive and File May 2025 Risk Management Team Report
3. Receive and File May 2025 Investment Report
4. Receive and File April 2025 Financial Dashboard
Motion: Committee Member Zuckerman
Second: Committee Member Newman
Vote: The consent agenda was approved by a roll call vote.
REGULAR AGENDA
5. Receive Presentation on the Energy Risk Management Policy Amendments and Provide Feedback
David McNeil, Chief Financial Officer, presented the item. Mr. McNeil noted that staff would like the Committee’s input on the proposed reduction to the Prompt Quarter (PQ) to PQ+3 Minimum Hedge Percentage, related to CPA’s Energy Risk Management Policy (ERMP) that governs the framework by which CPA conducts power procurement and related business activities. Additional proposed amendments are scheduled to be reviewed by the Energy Planning & Resources Committee at its June 25th meeting. Mr. McNeil stated that lowering the Minimum Hedge Percentage would provide flexibility to reduce hedge costs while responsibly managing risk. CPA’s improved financial strength and greater reserves allow it to absorb short-term market shocks while preserving its financial strength.
In response to Committee Member Zuckerman’s question about CPA’s energy contracts, staff clarified that CPA has more power under contract in addition to increased storage. An estimated 60 to 90% of CPA’s contracts are long-term rather than block hedges. Committee Member Zuckerman expressed support for the proposed change and suggested that staff consider making hedges a separate line item to evaluate costs over time. Committee Member Newman asked if there were any risks to reducing the percentage, and Mr. McNeil explained that the risk is potentially higher losses during extreme heat events, but that staff has modeled for those events and that CPA can absorb the losses. Committee Member Kulcsar supported the proposal, noting that staff has diligently refined the policy every year.
COMMITTEE MEMBER COMMENTS
Ted Bardacke, Chief Executive Officer, thanked the Finance Committee for all its work as the fiscal year comes to a close.
ADJOURN
Chair Santangelo adjourned the meeting at 11:31 a.m.
Finance Committee Item 1
Agenda Page 5
Staff Report – Agenda Item 2
To: Finance 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 6
Finance 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 7
Staff Report – Agenda Item 3
To: Finance Committee
From: David McNeil, Chief Financial Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Receive and File August 2025 Investment Report Date: September 24, 2025
RECOMMENDATION
Receive and file.
ATTACHMENT
1. August 2025 Investment Report
Agenda Page 8
Clean Power Alliance Investment Report
August 2025
(in USD unless otherwise noted)
Local Agency
Investment
Fund (LAIF)
Certificates of Deposit
(CDs)
California Asset
Management Program
(CAMP)
US Bank Custodial
Account
US Treasury Securities Total
Beginning Balance 17,554 70,000,000 174,923,192 3,066,061 198,744,285 446,751,092 Amortization & Accretion* 0 0 0 0 116,368 116,368
Deposits & Purchases 0 0 654,239 16,538 0 670,777
Maturities & Withdrawals 0 10,000,000 0 0 0 10,000,000
Ending Balance 17,554 60,000,000 175,577,431 3,082,599 198,860,653 437,538,238 Interest Earned** 62 257,426 654,239 16,538 532,321 1,460,585 Yield*** 4.25% 4.28% 4.40% 4.15% 3.88% 4.15%
Weighted Average Term to Maturity (Months) 7.0 4.2 2.0 1.0 54.5 26.2 ***Yield for LAIF & CAMP is reported on a monthly average basis; yield for CDs is determined based on a weighted average annual basis; yield for US Treasuries is equivalent to the yield to maturity at purchase date; total yield is the weighted average yield for the whole portfolio Transaction Type Maturity
Depository River City Bank
Par Amount 10,000,000
Rate 4.44%
Placement Date 8/29/2024
Maturity Date 8/28/2025
Term (weeks) 52
Interest Earnings (Total) 452,705
* Represents the change in book value of UST assets due to amortization/accretion of bond premium/discount at purchase over the lifetime of the asset Summary of Transactions (CDs)
** Interest earned on LAIF is based on daily compounding, account balances and monthly effective yield published by LAIF. Interest earned on CDs is based on the fixed interest rate of each CD and is paid out in full at maturity. Interest earned on UST is based on the yield of each UST and is paid out at maturity (for terms <6mo) or biannually (for terms >6mo) Agenda Page 9
Staff Report – Agenda Item 4
To: Finance Committee
From: David McNeil, Chief Financial Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Receive and File July 2025 Financial Dashboard Date: September 24, 2025
RECOMMENDATION
Receive and file.
ATTACHMENT
1. July 2025 Financial Dashboard
Agenda Page 10
Summary of Financial Results
Definitions:
Accounts: Active Accounts represents customer accounts of active customers served by CPA per Calpine Invoice Participation Rate %: Participation Rate represents active accounts divided by eligible CPA accounts YTD Sales Volume: Year-to-date sales volume represents the amount of energy (in gigawatt hours) sold to retail customers Revenues: Retail energy sales and other (grant related) revenues less allowance for doubtful accounts Cost of energy: Includes all direct power costs incurred to serve CPA’s load Operating expenses: Includes general, administrative, consulting, payroll, and other costs required to fund operations Operating Income: Represents the difference between revenues and cost of energy and operating expenses Non-Operating Income: Interest income arising from deposits and investments net of borrowing costs and fees Investments: Liquid and high-quality securities with maturities of 91 days or more Cash and Cash Equivalents: Includes bank deposits and high quality and liquid securities with maturities of 90 days or less Year to date (YTD): Represents the fiscal period beginning July 1, 2025 YTD
July
2025
Financial Dashboard
Note: Numbers may not sum up due to rounding.
Active Accounts
1,040,632
Participation Rate
92.9%
YTD Sales Volume
946 GWh
July Volume
946 GWh
Res
48%
Com - Lg
21%
Com - Sm
29%
Agr/Oth
2%
In July 2025 CPA’s net position decreased by $4.5 thousand, $1.706 million less than the budgeted decrease in net position of $1.71 million. July 2025 revenues were $13.2 million less than budgeted due to lower than forecasted residential energy consumption. The lower than budgeted revenue was offset by energy costs that were $14.1 million below budget. Lower revenue and energy costs were driven by mild weather which resulted in lower than forecasted residential electric consumption for cooling in CPA’s service area and lower than budgeted wholesale electricity prices.
Operating expenses were $1.6 million below budget and non-operating income was $0.8 million below budget.
As of July 31st, 2025, CPA had unrestricted cash, cash equivalents, and investments of $372.9 million, as well as $114.4 million available in its bank line of credit, representing 195 Days Liquidity on Hand. CPA is financially sound and in compliance with its bank and other credit covenants.
Agenda Page 11
Staff Report – Agenda Item 5
To: Finance Committee
From: David McNeil, Chief Financial Officer
Subject: Report from the Chief Financial Officer
Date: September 24, 2025
The CFO will provide an oral update on CPA’s financial operations.
Agenda Page 12
Staff Report – Agenda Item 6
To: Finance Committee
From: Kate Freeman, Strategic Finance Manager
Reviewed by: David McNeil, Chief Financial Officer
Nancy Whang, General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: CPA Prepay Transactions: Portfolio Planning Summary and Recommendations for Service Provider Contracts
Date: September 24, 2025
RECOMMENDATION
Recommend to the Board of Directors the selection of Municipal Capital Markets to serve as CPA's Municipal Financial Advisor and Chapman & Cutler to provide legal advice and counsel relating to any prepay transactions.
ATTACHMENT
1. Presentation on Portfolio Planning Summary and Recommendations for Service Provider Contracts
Agenda Page 13
Future CPA Prepay Transactions:
Portfolio Planning and Recommendation
for Service Provider Contracts
September 24, 2025
Agenda Page 14
Recommend to the Board at its October 2025 meeting the selection of Municipal Capital Markets (MCM) to serve as Municipal Financial Advisor (MFA) and Chapman & Cutler (Chapman) to provide legal advice and counsel, and as directed services in support of future prepay transactions.
Recommendation
2 Agenda Page 15
In planning for future prepays,
CPA faces some constraints:
The legal prohibition of prepaying
for an annual volume of energy
that exceeds CPA’s annual load
The need for renewable PPAs to
be available for assignment into
prepay transactions
The need to maintain some
unassigned renewable energy
contracts that provide portfolio
planning flexibility
Prepay Bonds and CPA’s Energy Portfolio
CPA completed five prepay transactions in 2023 and 2024, issuing $5.9 billion of prepay bonds leading to approximately $361 million of energy cost savings over the next eight years (~$45 million per year on average)
CPA’s five completed prepays utilize energy volumes comprising ~51% of CPA’s forecast FY2026/27 load and ~55% of total long-term RE PPAs that can be used to supply prepay bonds 3 Agenda Page 16
Staff believe CPA’s existing long-term RE PPA portfolio can support up to $4 billion of additional prepay bond transactions given current market conditions, representing ~35% of existing long-term RE PPAs available for assignment into prepays Staff believe that maintaining a 10% Planning Reserve of long-term RE PPAs available but not planned for use in future prepays is a prudent portfolio management practice which allows for planning and operational flexibility
Prepaid PPAs
(Prepays 1-5)
PPAs available for
Future Prepays
Planning
Reserve
Total Long-Term RE PPAs
available for Prepays*
Estimated prepay
bond par value of
long-term RE PPAs
$6 billion
(55%)
~$4 billion
(35%)
~$1 billion
(10%) ~$11 billion
* For planning purposes staff have not considered additional long-term RE PPAs that would serve forecasted load growth.
Were CPA to enter into these PPAs, it would allow for additional prepay transactions not contemplated here. * Energy assigned into prepays will remain well below CPA’s forecast load throughout the planning period Prepay Bonds and CPA’s Energy Portfolio – cont.
4 Agenda Page 17
The California prepaid electricity market has continued to expand and mature. Over the last five years, CCAs have completed 21 prepay bond issuances totaling $20 billion Market conditions are volatile; potential prepay savings change on a daily basis and the market has been closed to new issuances for extended periods in 2025. CPA cannot anticipate the timing and amount of future prepay transactions
By approving up to three transactions in July 2024, CPA’s Board granted staff the flexibility to act expeditiously when market conditions were favorable for CPA to realize significant savings To maximize savings, CCAs must exercise discretion about disclosing the timing and size of future issuances, which can be used by investors to reduce CPA savings Depending on investor demand and the available supply of other new municipal bond issuances, CPA may realize higher % savings by completing more smaller deals rather than fewer larger deals Next Steps
Given i) the need to act expeditiously, ii) market volatility, and iii) the volume of PPA energy in CPA's portfolio available for prepayment, staff believe that requesting authorization to issue bonds totaling $4.5 billion over the next 18 months is prudent. Staff plan to review this recommendation with the Executive and Finance Committees at their October meetings Prepay Market Dynamics
5 Agenda Page 18
Contracting for Service Providers
6 In accordance with CPA’s Non-Energy Public Contracting Policy, Staff identified MCM and Chapman as Best Value vendors to provide Specialized Services for future prepay transactions The pool of qualified vendors is extremely small
MCM and Chapman offer industry-leading expertise and have support the completion of over 70 prepay transactions since 2016, including all five completed by CPA to-date MCM would act as CPA’s Municipal Financial Advisor (MFA), assuming fiduciary responsibilities to CPA in connection with the prepays and providing services such as transaction modeling and analysis, market advisory, project management, and supporting CPA’s negotiations and document preparation
MCM’s contract would be substantially similar to that approved by the Board in May 2024 with compensation based on fixed per-transaction fees of $281,500 and a total NTE amount of $1,126,000 Chapman would act as CPA’s Prepay Counsel assuming fiduciary responsibilities to CPA including but not limited to, providing advice, counsel, and subject matter expertise for the negotiation and drafting of all prepay agreements and documentation, and to serve as Disclosure Counsel to CPA. Chapman’s services will be directed by the General Counsel Chapman’s scope of work would be substantially similar to that of the Legal Services Agreement approved by the Board in May 2024
The contract would establish a fixed per-transaction fee of $75,000 with a total NTE of $300,000 Agenda Page 19
September 24 (Finance Committee) – Prepay Presentation; seek recommendation to Board to approve contracts with service providers (MCM, Chapman) October 16 (Board) – Propose approval of contracts with MCM, Chapman October 16 (Executive Committee) – Prepay plan presentation; request input October 22 (Finance Committee) – Propose recommendation for Board to approve prepay pro forma contracts
November 6 (Board) – Approval of pro forma contracts, Resolutions authorizing Staff to execute prepay transactions with Underwriters & Prepaid Suppliers given:
1. Utilization of an approved set of “Form of” contracts with each
2. Achievement of CPA’s minimum savings parameter
3. Time period for transaction execution and maximum bond issuance amount November 7 (CCCFA Board) - Approval of pro forma contracts and resolutions authorizing transactions
Proposed Board and Committee Timeline
7 Agenda Page 20
Recommend to the Board at its October 2025 meeting the selection of Municipal Capital Markets (MCM) to serve as MFA and Chapman & Cutler (Chapman) to provide legal advice and counsel, and as directed services in support of future prepay transactions.
Recommendation
8 Agenda Page 21
Questions?
Agenda Page 22