Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, February 5, 2026
2:00 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
Diana Mahmud Board 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
Conference Room 3
100 Civic Center Way
Calabasas, CA 91301
Ventura County Government Center
Rincon Meeting Room
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Whittier City Hall
Admin Conference Room
13230 Penn Street
Whittier, CA 90602
South Bay Cities Council of Governments
Conference Room
357 Van Ness Way, Suite 90
Torrance, CA 90501
West Hollywood City Hall
3rd Floor Conference Room
8300 Santa Monica Blvd
West Hollywood, CA 90069
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 Board 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 Board 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.
Agenda Page 1
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 PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from January 15, 2026, Board of Directors Meeting
2. Approve Professional Services Agreement with MG Advisory Corp with a Per-Transaction Fee of $281,500 and a Total Not-to-Exceed Amount of $844,500, to be Paid from Bond Proceeds, for Municipal Financial Advisory and Guaranteed Investment Contract Broker Services for up to Three Future Energy Prepayment Bond Transactions
3. Adopt Resolution No.26-02-100 Approving the Dynamic Rate Pilot Enrollment Cap Increase and Delegation ofAuthority to the Chief Executive Officerto Increase Cap
4. Adopt Resolution No. 26-02-101 Amending the Clean Power Alliance Net Energy Metering Tariff and Net Billing Tariff Effective February 5, 2026
5. Receive and File Monthly Community Advisory Committee Report
REGULAR AGENDA
Information Items
6. Receive Customer Programs Quarterly Reporting Presentation
7. Receive Communications and Marketing Quarterly Update and 2026 Look Ahead Presentation
Agenda Page 2
COMMITTEE CHAIR UPDATES
Director Cedric Hicks, Chair, Legislative & Regulatory Committee Director Susan Santangelo, Chair, Finance Committee
Director Robert Parkhurst, Chair, Energy Planning & Resources Committee
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT REGULAR MEETING MARCH 5, 2026
Public Records: Public records that relate to any item on the open session agenda for a regular Board 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 Board. 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 3
Commonly Used Acronyms
BESS Battery Energy Storage System
CAC Community Advisory Committee
CAISO California Independent System Operator
CALCCA California Community Choice Association
CalEVIP California Electric Vehicle Incentive Program
CARB California Air Resources Board
CARE California Alternate Rates for Energy (Low Income Discount Rate) CCA Community Choice Aggregation
CEC California Energy Commission
CPUC California Public Utilities Commission
DA Direct Access (Private Retail Energy Supplier)
DAC Disadvantaged Community (As Defined by Calenviroscreen 3.0) DER Distributed Energy Resources
DR Demand Response
ERMP Energy Risk Management Policy
ERRA Energy Resource Recovery Account (SCE Generation Rate Setting)
ESA Energy Storage Agreement
EVSE Electric Vehicle Supply Equipment (EV Charger)
FERA Family Electric Rate Assistance (Low Income Discount Rate) GHG Greenhouse Gas
IOU Investor Owned Utility
IRP Integrated Resource Plan
JPA Joint Powers Authority
Agenda Page 4
Commonly Used Acronyms
Kwh Kilowatt-Hour (A Measure of Energy Used in A One-Hour Period) Kw Kilowatt = 1,000 Watts (Watt = A Measure of Instantaneous Power) LSE Load Serving Entity
MB Medical Baseline (Discount Rate for Medical Equipment Needs) MW Megawatt = 1,000 Kilowatts
Mwh Megawatt-Hour = 1,000 Kilowatt-Hours
NEM Net Energy Metering (Usually for Customers with Solar) OAT Other Applicable Tariffs
PCIA Power Charge Indifference Adjustment (Can Be Called “Exit Fee”) PCC1 Renewable Energy Generated Inside California
PCC2 Renewable Energy Generated Outside California
PCC3 A REC from A Renewable Resource, Delivered Without Energy PCL Power Content Label
POU Publicly Owned or Municipal Utility
PPA Power Purchase Agreement
PSPS Public Safety Power Shutoff
PV Photovoltaic (Solar) Panels
RA Resource Adequacy
REC Renewable Energy Credit
RPS Renewables Portfolio Standard
T&D Transmission and Distribution
TOU Time Of Use (Used to Refer to Rates that Differ by Time Of Day) WECC Western Electricity Coordinating Council
Agenda Page 5
Staff Report – Agenda Item 1
To: Board of Directors
Subject: Approve Minutes from the January 15, 2026, Board of Directors Meeting
Date: February 5, 2026
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 6
Board of Directors Item 1
MINUTES
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, January 15, 2026, 2:00 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Board members participated from the following locations:
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91301
Clean Power Alliance
Diana Mahmud Board Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
South Bay Cities Council of Governments
Conference Room
357 Van Ness Way, Suite 90
Torrance, CA 90501
Ventura County Government Center
Point Mugu Conference Room, 4th Floor
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
West Hollywood City Hall
3rd Floor Conference Room
8300 Santa Monica Boulevard
West Hollywood, CA 90069
Whittier City Hall
Admin Conference Room
13230 Penn Street
Whittier, CA 90602
Alhambra City Hall
Conference Room
111 S. First St
Alhambra, CA 91801
Camarillo City Hall
Council Office
601 Carmen Drive
Camarillo, CA 93010
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Hawthorne City Hall
Administrative Office
4455 W. 126th Street
Hawthorne, CA 90250
Beverly Hills City Hall
Council Office 4A, 4th Floor
455 N. Rexford Drive
Beverly Hills, CA 90210
Moorpark City Hall
Century Conference Room
323 Science Drive
Moorpark, CA 93021
Claremont City Hall
Council Office
207 Harvard Avenue
Claremont, CA 91711
Sierra Madre City Hall
Council Chambers
232 W. Sierra Madre Blvd.
Sierra Madre, CA 91024
La Cañada Flintridge City Hall
Rose Conference Room
1 Civic Center Drive
La Cañada Flintridge, CA 91011
CALL TO ORDER & PLEDGE OF ALLEGIANCE
Chair Klein Lopez called the meeting to order at 2:06 p.m. and Director Newman led the Pledge of Allegiance.
Agenda Page 7
Board of Directors Item 1
ROLL CALL
Annie Mendoza, Deputy Clerk of the Board, conducted roll call.
Roll Call
1 Agoura Hills Deborah Klein Lopez Chair Remote
2 Alhambra Jeff Maloney Director Remote
3 Arcadia Paul Cheng Director Present
4 Beverly Hills Craig Corman Director Remote
5 Calabasas Ed Albrecht Director Remote
6 Camarillo Susan Santangelo Director Remote
7 Carson Cedric Hicks Director Remote
8 Claremont Corey Calaycay Director Remote
9 Culver City Yasmine-Imani McMorrin Director Present
10 Downey Absent
11 Hawaiian Gardens Ramie Torres Alternate Remote
12 Hawthorne Alex Monteiro Director Present
13 Hermosa Beach Doug Krauss Alternate Remote
14 La Cañada Flintridge Stephanie Fossan Director Remote 15 Los Angeles County Lindsey Horvath Vice Chair Present 16 Lynwood Juan Muñoz-Guevara Director Remote
17 Malibu Absent
18 Manhattan Beach David Lesser Director Remote
19 Monrovia Edward Belden Director Present
20 Moorpark Roger Pichardo Alternate Remote
21 Ojai Michelle Ellison Alternate Remote
22 Oxnard Bert Perello Director Remote
23 Paramount Michelle Muller Alternate Remote
24 Port Hueneme Laura Hernandez Director Remote
25 Redondo Beach Brad Waller Director Present
26 Rolling Hills Estates Debby Stegura Director Remote
Agenda Page 8
Board of Directors Item 1
27 Santa Monica Pam O’Connor Alternate Present
28 Santa Paula Jenny Crosswhite Director Remote
29 Sierra Madre Robert Parkhurst Director Remote
30 Simi Valley Rocky Rhodes Director Remote
31 South Pasadena Diana Mahmud Alternate Present
32 Temple City Ed Chen Director Remote
33 Thousand Oaks David Newman Director Remote
34 City of Ventura Ryyn Schumacher Director Remote
35 Ventura County Vianey Lopez Vice Chair Remote
36 West Hollywood John Erickson Director Remote
37 Westlake Village Kristopher Galvez Alternate Remote
38 Whittier Leon Vasquez Alternate Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
None.
CONSENT AGENDA
1. Approve Minutes from December 4, 2025, Board of Directors Meeting Motion: Director Monteiro, Hawthorne
Second: Director Parkhurst, Sierra Madre
Vote: The consent agenda was approved by roll call vote, with abstentions from Directors Perello and O’Connor.
REGULAR AGENDA
2. Adopt Resolution No. 26-01-099 to Approve 2026 Interim Rates for Phases 1, 2, 3, 4, 5, and 6 Customers Consistent with the 2026 Interim Rates Adjustment Approach Approved by the Board of Directors on December 4, 2025 Chair Klein Lopez commented that the Board voted in December on an interim rate adjustment based on projected calculations related to SCE’s rate changes. Ted Bardacke, Chief Executive Officer, stated that CPA’s goal is to adjust rates on February 1, 2026, to minimize the rate shock related to SCE’s changes. On average, the proposal is a 20% reduction in generation rates; CPA can withstand the decrease in revenue for at least the next five months. Mr. Bardacke noted the adjustment addresses the PCIA increase and maintains competitiveness with SCE.
New rates will still contribute $15 million to CPA’s reserves for the coming year, leaving the fiscal stabilization fund untouched. Mr. Bardacke presented a brief history of the PCIA and its effects on CPA, noting that in December, CalCCA filed
Agenda Page 9
Board of Directors Item 1
a petition for a writ of review with the California Court of Appeals, asking the court to compel the CPUC to revisit its PCIA calculation methodology. The trade organization has also filed applications for rehearing for each of the state’s three IOUs, and it may take further action depending on the CPUC’s response. Mr.
Bardacke stated that Board members would receive fact sheets and talking points related to the rate changes, legal challenges, and bill fluctuations.
Director Mahmud asked about legislative actions, and staff responded that CalCCA is likely to propose legislation this year, benefiting from more legislators who are familiar with CCAs. Vice Chair Horvath praised staff for developing a rate adjustment that helps customers, maintains contributions to reserves, and maintains a competitive position with SCE.
Motion: Director Erickson, West Hollywood
Second: Director Newman, Thousand Oaks
Vote: Item 2 was approved by roll call vote.
MANAGEMENT REPORT
Mr. Bardacke highlighted two items from the Management Report: a PCIA regulatory update and electronic voting for public meetings.
BOARD MEMBER COMMENTS
None.
REPORT FROM THE CHAIR
Chair Klein Lopez thanked the Board for meeting outside of its regular schedule and stated that the next meeting would be on February 5, 2026.
ADJOURN
Chair Klein Lopez adjourned the meeting at 2:30 p.m.
Agenda Page 10
Staff Report – Agenda Item 2
To: Board of Directors
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: Professional Services Agreement with MG Advisory Corp (”MG”) Date: February 5, 2026
RECOMMENDATION
Approve Professional Services Agreement with MG Advisory Corp (”MG”) with a per-transaction fee of $281,500 and a total Not-to-Exceed (”NTE”) Amount of $844,500, to be paid from Bond Proceeds, for municipal financial advisory and guaranteed investment Contract (”GIC”) broker services for up to three (3) future energy prepayment bond transactions.
BACKGROUND/DISCUSSION
A Municipal Financial Advisor (”MFA”) is required to support CPA through the process of structuring and executing prepay bond transactions. The MFA supports the evaluation of potential Underwriters & Prepaid Suppliers and engages in ongoing deliberations with the Underwriters & Prepaid Suppliers and their related counsel to negotiate and structure prepay transactions. The MFA assumes fiduciary responsibilities to CPA in connection with the prepays and provides services such as transaction modeling and analysis, financial market advisory and expertise, project management, and support in prepay contract negotiation and document preparation. The MFA also provides brokerage Agenda Page 11
Board of Directors Item 2
services for the placement of Guaranteed Investment Certificates (GICs) in association with prepay transactions which provide additional savings to CPA.
In August 2025, staff identified Municipal Capital Markets, Inc. (”MCM”) as a Best Value vendor in accordance with CPA’s Non-Energy Public Contracting Policy to provide Specialized Services in support of one or more future CPA prepay transactions. The pool of qualified vendors to provide MFA services for prepay transactions is very small. John Norman and Tyler Noble, then employees of MCM, served as the MFA in each of CPA’s first five prepay transactions and staff has had a positive experience working with these individuals. Mr. Norman and Mr. Noble offer industry-leading experience and have supported the completion of over 70 prepay transactions since 2016.
On October 16, 2025, the Board approved a professional services agreement with MCM (”MCM Agreement”) to support CPA in its issuance of future energy prepay bond transactions. In November 2025, the Board adopted Resolutions supporting the issuance of up to $4.5 billion of energy prepay transactions on CPA’s behalf by California Community Choice Financing Authority (”CCCFA”) by the end of Q2 2027.
In December 2025, CPA received notice that Mr. Norman and Mr. Noble were joining a new firm, MG, effective January 2026. CPA subsequently terminated the MCM Agreement for convenience and entered into a new professional services agreement with MG in January 2026 under the CEO’s signing authority to permit the immediate continuance of MFA activities. This new agreement is intended to only cover MG fees associated with CPA’s contemplated sixth (6th) prepay transaction (”First MG Agreement”). The terms of the First MG Agreement were substantially similar to the MCM Agreement, but with a lower NTE amount of $250,000 (compared to the NTE per-transaction amount of $281,500 for the MCM Agreement).
The proposed contract with MG is intended to cover CPA’s 7th through 9th prepay transactions (”Second MG Agreement”) and is substantially similar to the First MG Agreement executed in January 2026 and the initial MCM contract approved by the Board Agenda Page 12
Board of Directors Item 2
in October 2025. Under the proposed Second MG Agreement, compensation to MG consists of flat per-transaction fees—(i) a $200,000 Transaction Fee, (ii) a $50,000 Report Fee, and (iii) a $31,500 Transaction Fee for GIC brokerage services for a total per transaction fee of $281,500—that are payable only upon the successful completion of a prepay bond transaction. The total compensation payable to MG under the Agreement has a NTE of $844,500, corresponding to a maximum of three prepay transactions. As in prior services agreements with MCM, CPA is required to pay MG 75% of the Transaction Fee from bond proceeds in the event CPA terminates the Agreement for convenience thirty (30) or fewer days prior to the closing date of a prepay transaction. In the event the prepay transaction is not successfully closed, no compensation is owed to MG. Payments to MG are contingent upon the successful completion of each prepay transaction and are payable by CCCFA out of bond proceeds, which is consistent with prior prepay transactions.
FISCAL IMPACT
Fees are paid from bond proceeds and are not a direct CPA expense. The combined total NTE amount of the First and Second MG Agreements is $31,500 lower than the total NTE amount of the MCM Agreement terminated in December 2025.
ATTACHMENT
1. Professional Services Agreement with MG
Agenda Page 13
1 Clean Power Alliance of Southern California
This Professional Services Agreement (this “Agreement”), dated and effective as of February 5, 2026 (the “Effective Date”), is made by and between:
CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA (“CPA”), and MG ADVISORY CORP (“Contractor”).
CPA and Contractor are sometimes collectively referred to herein as the “Parties” and each individually as a “Party.” In consideration of the terms of this Agreement, and for other good and valuable consideration, the Parties make the following acknowledgments and agreements:
RECITALS
WHEREAS, CPA may contract with a provider for which will provide CPA with municipal advisory services and guaranteed investment contract (“GIC”) brokerage services as a Specialized Service;
WHEREAS, CPA selected Contractor because Contractor has the expertise and specialized experience to provide the services to CPA and offered CPA the Best Value;
WHEREAS, Contractor desires to provide the municipal advisory and GIC brokerage Specialized Services to CPA;
WHEREAS, the purpose of this Agreement is to set forth the terms and conditions upon which Contractor shall provide services to CPA; NOW, THEREFORE, it is agreed based on the consideration set forth below by the Parties to this Agreement as follows:
AGREEMENT
1. Definitions
a. “Artificial Intelligence” means any system or tool that autonomously processes data and/or generates predictions, algorithms, code, recommendations, decisions, textual materials, audiovisual material, or other expressive material, with minimal human intervention, and where the system’s behavior may evolve based on new inputs.
b. The definition of “Confidential Information” is set forth in paragraph 10.b. of this Agreement.
c. “CPA Data” shall mean all data gathered or created by Contractor in the performance of the Services pursuant to this Agreement, including any customer or customer-related data.
Agenda Page 14
2 d. “CPA Information” shall mean all confidential, proprietary, or sensitive information provided by CPA to Contractor in connection with this Agreement. e. “CPA Materials” shall mean all finished or unfinished content, writing and design of materials but not limited to messaging, design, personalization, or other materials, reports, plans, studies, documents and other writings prepared by Contractor, its officers, employees and agents for CPA for the performance of, the purpose of, or in the course of implementing this Agreement. f. “CPA Product” includes collectively CPA Data, CPA Information, and CPA Materials.
g. “Services” shall mean the scope of work Contractor provides to CPA as specified in Exhibit A.
2. Exhibits and Attachments
The following exhibits and attachments are attached to this Agreement and incorporated into this Agreement by this reference:
Exhibit A – Scope of Work
Exhibit B – Reserved
Exhibit C – Compensation
Exhibit D – Required Disclosure of Violations of Compliance Policies and Procedures Exhibit E – G-42 Conflicts Disclosure
Should a conflict arise between language in the body of this Agreement and any exhibit or attachment to this Agreement, the language in the body of this Agreement controls, followed by Exhibit A, B, C, D, and E in that order.
3. Services to be Performed by Contractor
In consideration of the payments set forth in this Agreement and in Exhibit C, Contractor shall perform services for CPA in accordance with the terms, conditions, and specifications set forth in this Agreement and in Exhibits A (“Services”).
4. Compensation
CPA agrees to compensate Contractor as specified in Exhibit C:
a. In consideration of the Services provided by Contractor in accordance with all terms, conditions, and specifications set forth in this Agreement and Exhibit A, Contractor shall be paid on a contingency basis and from investment agreement proceeds in the manner specified in Exhibit C. b. Unless otherwise indicated in Exhibit C, Contractor shall invoice CPA monthly to [email protected] for all compensation related to Services performed during the previous month. Payments shall be due within Agenda Page 15
3 fifteen (15) calendar days after the date the invoice is submitted to CPA at the specified email address. All payments must be made in U.S. dollars.
5. Term
Subject to compliance with all terms and conditions of this Agreement, the term of this Agreement shall extend until the earlier of (i) completion of municipal advisory and GIC brokerage work associated with the issuance of the prepayment bonds, whether in one (1) or more transactions, or (ii) two (2) years from the date of the Agreement (“Term”).
6. Termination
a. Termination for Convenience. CPA may terminate the Agreement in accordance with this paragraph in whole, or from time to time in part, whenever CPA determines, at its sole discretion, that termination is in CPA’s best interests. A termination for convenience, in part or in whole, shall take effect by CPA delivering to Contractor, at least fifteen (15) calendar days prior to the effective date of the termination or prior to a Notice of Termination specifying the extent to which performance of the Services under the Agreement is terminated.
If the termination for convenience is partial, Contractor may submit to CPA a request in writing for equitable adjustment of price or prices specified in the Agreement relating to the portion of this Agreement which is not terminated.
CPA may, but shall not be required to, agree on any such equitable adjustment. Nothing contained herein shall limit the right of CPA and Contractor to agree upon amount or amounts to be paid to Contractor for completing the continued portion of the Agreement when the Agreement does not contain an established price for the continued portion. Nothing contained herein shall limit CPA’s rights and remedies at law.
b. Termination for Default. If Contractor fails to provide in any manner the Services required under this Agreement, otherwise fails to comply with the terms of this Agreement, or violates any ordinance, regulation or law which applies to its performance herein and such default continues uncured for thirty (30) calendar days after written notice is given to Contractor, CPA may terminate this Agreement by giving five (5) business days' written notice. If Contractor requires more than thirty (30) calendar days to cure, then CPA may, at its sole discretion, authorize additional time as may reasonably be required to effect such cure provided that Contractor diligently and continuously pursues such cure.
c. Termination for Lack of Third-Party Funding. CPA may terminate this Agreement if funding for this Agreement is reduced or eliminated by a third-party funding source. d. Effect of Termination. Upon the effective date of expiration or termination of this Agreement: (i) Contractor may immediately cease providing Services in its entirety or if a termination to a part of the Agreement, cease providing the Services that have been terminated; (ii) any and all payment obligations of CPA under this Agreement will become due immediately except any equitable Agenda Page 16
4 adjustment pursuant to Paragraph 5(a); (iii) promptly transfer title and deliver to CPA all CPA Product or any work in progress pursuant to this Agreement; and (iv) each Party will promptly either return or destroy (as directed by the other Party) all Confidential Information of the other Party in its possession as well as any other materials or information of the other Party in its possession.
Upon such expiration or termination, and upon request of CPA, Contractor shall reasonably cooperate with CPA to ensure a prompt and efficient transfer of all data, documents and other materials to CPA in a manner such as to minimize the impact of expiration or termination on CPA’s customers.
7. Contract Materials
CPA owns all right, title and interest in and to all CPA Materials and CPA Data. Upon the expiration of this Agreement, or in the event of termination, CPA Materials and all CPA Information, in whatever form and in any state of completion, shall remain the property of CPA and shall be promptly returned to CPA. Upon termination, Contractor may make and retain a copy of such Contract Materials if required by law or pursuant to the Contractor’s reasonable document retention or destruction policies.
8. Payments of Permits/Licenses
Contractor bears responsibility to obtain any license, permit, or approval required for it to provide the Services to be performed under this Agreement at Contractor’s own expense prior to commencement of the Services.
9. No Recourse against Constituent Members
CPA is organized as a Joint Powers Authority in accordance with the Joint Exercise of Powers Act of the State of California (Government Code Section 6500, et seq.) pursuant to the Joint Powers Agreement and is a public entity separate from its constituent members. CPA shall solely be responsible for all debts, obligations and liabilities accruing and arising out of this Agreement. Contractor shall have no rights and shall not make any claims, take any actions or assert any remedies against any of CPA’s constituent members in connection with this Agreement.
10. Confidential Information
a. Duty to Maintain Confidentiality. Contractor agrees that Contractor will hold all Confidential Information in confidence, and will not divulge, disclose, or directly or indirectly use, copy, digest, or summarize, any Confidential Information unless necessary to comply with any applicable law, regulation, or in connection with any court or regulatory proceeding applicable in which case, any disclosure shall be subject to this paragraph, 10.c., and 10.d., below. b. Definition of “Confidential Information”. The following constitutes “Confidential Information,” whether oral or written: (a) the terms and conditions of, and proposals and negotiations related to, this Agreement, (b) information, in whatever form, that CPA shares with Contractor in the course and scope of this Agenda Page 17
5 Agreement, or (c) information that either Contractor stamps or otherwise identifies as “confidential” or “proprietary” before disclosing it to the other.
Confidential Information shall not include: (l) information that is generally available to the public or in the public domain at the time of disclosure; (2) information that becomes publicly known other than through any breach of this Agreement by Contractor or its Representatives; (3) information which is subsequently lawfully and in good faith obtained by Contractor or its Representatives from a third party, as shown by documentation sufficient to establish the third party as the source of the Confidential Information; provided that the disclosure of such information by such third party is not known by Contractor or its Representatives to be in breach of a confidentiality agreement or other similar obligation of confidentiality; (4) information that Contractor or its Representatives develop independently without use of or reference to Confidential Information provided by Contractor; or (5) information that is approved for release in writing by Contractor.
c. California Public Records Act. The Parties acknowledge and agree that the Agreement including but not limited to any communication or information exchanged between the Parties, any deliverable, or work product are subject to the requirements of the California Public Records Act (Government Code Section 7920.000 et seq.). In order to designate information as confidential, the Disclosing Party must clearly stamp and identify the specific portion of the material designated with the word “Confidential.” The Parties agree not to over-designate material as Confidential Information. Over-designation includes stamping whole agreements, entire pages or series of pages as “Confidential” that clearly contain information that is not Confidential Information. d. Third Party Request for Confidential Information. Upon request or demand of any third person or entity not a Party hereto pursuant to the California Public Records Act for production, inspection and/or copying of Confidential Information (“Requested Confidential Information”), CPA will as soon as practical notify Contractor in writing via email that such request has been made.
CPA will be solely responsible for taking at its sole expense whatever legal steps are necessary to prevent release to the third party of the Confidential Information designated by Contractor. If Contractor takes no such action after receiving the foregoing notice from CPA, CPA shall, at its discretion, be permitted to comply with the third party’s request or demand and is not required to defend against it. If Contractor does take or attempt to take such action, Contractor agrees to indemnify and hold harmless CPA, its officers, directors, employees and agents (“CPA Indemnified Parties”), from any claims, liability, award of attorneys’ fees, or damages, and to defend any action, claim or lawsuit brought against any of CPA Indemnified Parties for Contractor’s attempt to prevent disclosure or CPA’s refusal to disclose any Confidential Information.
11. Insurance
All required insurance coverages shall be substantiated with a certificate of insurance and must be signed by the insurer or its representative evidencing such insurance to CPA within 10 business days after the Agreement is fully executed. The general liability policy shall be endorsed naming Clean Power Alliance of Southern California and its employees, Agenda Page 18
6 officers and agents as additional insureds. The certificate(s) of insurance and required endorsement shall be furnished to CPA prior to commencement of work and maintained throughout the Term and any Renewal Term. Each certificate shall provide for thirty (30) days advance written notice to CPA of any cancellation or reduction in coverage. Said policies shall remain in force through the life of this Agreement and shall be payable on a per occurrence basis only, except those required by paragraph (d) below which may be provided on a claims-made basis consistent with the criteria noted therein.
Nothing herein shall be construed as a limitation on Contractor’s obligation under paragraph 6 of this Agreement to indemnify, defend, and hold CPA harmless from any and all liabilities arising from the Contractor’s negligence, recklessness or willful misconduct in the performance of this Agreement. CPA agrees to timely notify the Contractor of any negligence claim.
Failure to provide and maintain the insurance required by this Agreement will constitute a material breach of the Agreement. In addition to any other available remedies, CPA may suspend payment to the Contractor for any services provided during any time that insurance was not in effect and until such time as the Contractor provides adequate evidence that Contractor has obtained the required coverage. a. General Liability
The Contractor shall maintain a commercial general liability insurance policy in an amount of no less than one million ($1,000,000.00) with a two million dollar ($2,000,000.00) aggregate limit. CPA shall be named as an additional insured on the commercial general liability policy and the Certificate of Insurance shall include an additional endorsement page.
b. Auto Liability
Where the services to be provided under this Agreement involve or require the use of any type of vehicle by Contractor in order to perform said services, Contractor shall also provide comprehensive business or commercial automobile liability coverage including non-owned and hired automobile liability in the amount of one million dollars combined single limit ($1,000,000.00).
c. Workers’ Compensation
The Contractor acknowledges the State of California requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of the Labor Code. If Contractor has employees, a copy of the certificate evidencing such insurance or a copy of the Certificate of Consent to Self-Insure shall be provided to CPA prior to commencement of work. d. Professional Liability Insurance
Coverages required by this paragraph may be provided on a claims-made basis with a “Retroactive Date” either prior to the date of the Agreement or the beginning of the contract work. If the policy is on a claims-made basis, coverage must extend to a minimum of twelve (12) months beyond completion of contract work. If coverage is cancelled or non-renewed, and not replaced with another claims made policy form with a “retroactive date” Agenda Page 19
7 prior to the Agreement effective date, the Contractor must purchase “extended reporting” coverage for a minimum of twelve (12) months after completion of contract work.
Contractor shall maintain a policy limit of not less than $1,000,000.00 per incident. If the deductible or self-insured retention amount exceeds $100,000.00, CPA may ask for evidence that Contractor has segregated amounts in a special insurance reserve fund or Contractor’s general insurance reserves are adequate to provide the necessary coverage and CPA may conclusively rely thereon.
Contractor shall be responsible for initiating, maintaining and supervising all safety precautions and programs in connection with the performance of the Agreement.
Contractor shall monitor the safety of the job site(s) during the project to comply with all applicable federal, state, and local laws, and to follow safe work practices.
12. Indemnification
Contractor agrees to indemnify, defend, and hold harmless CPA, its employees, officers, and agents, from and against, and shall assume full responsibility for payment of all wages, state or federal payroll, social security, income or self-employment taxes, with respect to Contractor’s performance of this Agreement. Contractor further agrees to indemnify, and hold harmless CPA from and against any and all third- party claims, liabilities, penalties, forfeitures, suits, costs and expenses incident thereto (including costs of defense, settlement, and reasonable attorney’s fees), which CPA may hereafter incur, become responsible for, or pay out, as a result of death or bodily injuries to any person, destruction or physical damage to tangible property, or any violation of governmental laws, regulations or orders, to the extent caused by Contractor’s negligent acts, errors or omissions, or the negligent acts, errors or omissions of Contractor’s employees, agents, or subcontractors while in the performance of the terms and conditions of the Agreement, except for such loss or damage arising from the sole negligence or willful misconduct of CPA, elected and appointed officers, employees, agents and volunteers.
13. Independent Contractor
a. Contractor acknowledges that Contractor, its officers, employees, or agents will not be deemed to be an employee of CPA for any purpose whatsoever, including, but not limited to: (i) eligibility for inclusion in any retirement or pension plan that may be provided to employees of Contractor; (ii) sick pay; (iii) paid non-working holidays; (iv) paid vacations or personal leave days; (v) participation in any plan or program offering life, accident, or health insurance for employees of Contractor; (vi) participation in any medical reimbursement plan; or (vii) any other fringe benefit plan that may be provided for employees of Contractor.
b. Contractor declares that Contractor will comply with all federal, state, and local laws regarding registrations, authorizations, reports, business permits, and licenses that may be required to carry out the work to be performed under this Agreement. Contractor agrees to provide CPA with copies of any registrations Agenda Page 20
8 or filings made in connection with the work to be performed under this Agreement.
14. Compliance with Applicable Laws
The Contractor shall comply with any and all applicable federal, state, and local laws and resolutions affecting this Agreement or Services covered by this Agreement.
15. Use of Artificial Intelligence
a. Contractor must not use or input any confidential, proprietary, or otherwise sensitive financial, human resources, customer, power procurement, or any other CPA data in any Artificial Intelligence technology. b. Contractor shall obtain written consent from CPA prior to any use of Artificial Intelligence technology to generate or produce any deliverables and/or perform Services under this Agreement (“Generative AI”). Contractor must disclose to CPA information about its planned use of Generative AI, including the name of Artificial Intelligence products used, when such Artificial Intelligence is used, and the deliverables and Services provided by Contractor that utilized Generative AI.
c. Contractor represents and warrants that it has the necessary rights and licenses to use any Generative AI.
d. Contractor represents and warrants that it has full power and authority to grant to CPA any rights or licenses related to Contractor’s use of Generative AI. e. Contractor represents and warrants that its usage of Artificial Intelligence, production of deliverables, and performance of any Services will not misappropriate, violate, or infringe any third-party intellectual property rights.
16. Nondiscriminatory Employment
Contractor and/or any permitted subcontractor, shall not unlawfully discriminate against any individual based on race, color, religion, nationality, sex, sexual orientation, age, protected veteran status, or condition of disability. Contractor and/or any permitted subcontractor understands and agrees that Contractor and/or any permitted subcontractor is bound by and will comply with the nondiscrimination mandates of all federal, state and local statutes, regulations and ordinances.
17. Work Product.
All finished and unfinished reports, plans, studies, documents and other writings prepared by and for Contractor, its officers, employees and agents in the course of implementing this Agreement shall become the sole property of CPA upon payment to Contractor for such work. CPA shall have the exclusive right to use such materials in its sole discretion without further compensation to Contractor or to any other party. Contractor shall, at CPA’s expense, provide such reports, plans, studies, documents and writings to CPA or any party CPA may designate, upon written request. Contractor may keep file reference copies of all documents prepared for CPA.
Agenda Page 21
9 18. Notices
Any notice, request, demand, or other communication required or permitted under this Agreement shall be deemed to be properly given when both: (1) transmitted via email to the email address listed below; and (2) sent to the physical address listed below by either being deposited in the United States mail, postage prepaid, or deposited for overnight delivery, charges prepaid, with an established overnight courier that provides a tracking number showing confirmation of receipt.
In the case of CPA, to:
Name/Title: Theodore Bardacke, Chief Executive Officer
Address: 801 S. Grand Ave., Suite 400, Los Angeles, CA 90017 Telephone: (213) 269-5890
Email: [email protected]
In the case of Contractor, to:
Name/Title: Tyler Noble, Managing Director
Address: 2 Biscayne Blvd, Ste. 9014, Miami, FL 33131
Telephone: (303) 526-1040
Email: [email protected]
19. Assignment
Neither this Agreement nor any of the Parties’ rights or obligations hereunder may be transferred or assigned without the prior written consent of the other Party. Subject to the preceding sentence, this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.
20. Subcontracting
Contractor may not subcontract Services to be performed under this Agreement without the prior written consent of CPA. If the CPA’s written consent to a subcontract is not obtained, Contractor acknowledges and agrees that CPA will not be responsible for any fees or expenses claimed by such subcontractor.
21. Retention of Records and Audit Provision
Contractor and any subcontractors authorized by the terms of this Agreement shall keep and maintain on a current basis full and complete documentation and accounting records, employees’ time sheets, and correspondence pertaining to this Agreement. Such records shall include, but not be limited to, documents supporting all income and all expenditures.
CPA shall have the right, during regular business hours, to review and audit all records relating to this Agreement during the Agreement period and for at least five (5) years from the date of the completion or termination of this Agreement. Any review or audit may be conducted on Contractor’s premises, or, at CPA’s option, Contractor shall provide all records within a maximum of fifteen (15) days upon receipt of written notice from CPA.
Contractor shall refund any monies erroneously charged. Contractor shall have an opportunity to review and respond to or refute any report or summary of audit findings and shall promptly refund any overpayments made by CPAbased on undisputed audit Agenda Page 22
10 findings.
22. Conflict of Interest
a. No CPA employee whose position with the CPA enables such employee to influence the award of this Agreement or any competing Agreement, and no spouse or economic dependent of such employee, shall be employed in any capacity by the contractor or have any other direct or indirect financial interest in this Agreement. No officer or employee of the Contractor who may financially benefit from the performance of work hereunder shall in any way participate in the CPA’s approval, or ongoing evaluation, of such work, or in any way attempt to unlawfully influence the CPA’s approval or ongoing evaluation of such work. b. The Contractor shall comply with all conflict of interest laws, ordinances, and regulations now in effect or hereafter to be enacted during the term of this Agreement. The Contractor warrants that it is not now aware of any facts that create a conflict of interest. If the Contractor hereafter becomes aware of any facts that might reasonably be expected to create a conflict of interest, it shall immediately make full written disclosure of such facts to CPA. Full written disclosure shall include, but is not limited to, identification of all persons implicated and a complete description of all relevant circumstances. Failure to comply with the provisions of this paragraph shall be a material breach of this Agreement.
23. Publicity
Contractor shall not issue a press release or any public statement regarding the Agreement, Services contemplated by this Agreement, or any other related transaction unless CPA has agreed in writing the contents of any such public statement.
24. Governing Law, Jurisdiction, and Venue
This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. The Contractor agrees and consents to the exclusive jurisdiction of the courts of the State of California for all purposes regarding this Agreement and further agrees and consents that venue of any action brought hereunder shall be exclusively in the County of Los Angeles.
25. Amendments
None of the terms and conditions of this Agreement may be changed, waived, modified or varied in any manner whatsoever unless in writing duly signed by the Parties.
26. Severability
Should any provision of this Agreement be held invalid or unenforceable by a court of competent jurisdiction, such invalidity will not invalidate the whole of this Agreement, but rather, the remainder of the Agreement which can be given effect without the invalid provisions, will continue in full force and effect and will in no way be impaired or invalidated.
Agenda Page 23
11 27. Complete Agreement
This Agreement constitutes the entire Agreement between the parties. No modification or amendment shall be valid unless made in writing and signed by each party. Failure of either party to enforce any provision or provisions of this Agreement will not waive any enforcement of any continuing breach of the same provision or provisions or any breach of any provision or provisions of this Agreement.
28. Counterparts
This Agreement may be executed in one or more counterparts, including facsimile(s), emails, or electronic signatures, each of which shall be deemed an original and all of which together will constitute one and the same instrument IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.
MG Advisory Corp Clean Power Alliance of Southern California By: Seema Mohanty By: Theodore Bardacke
Title: Managing Director Title: Chief Executive Officer Agenda Page 24
12 Exhibit A – Scope of Work
PROJECT TASKS AND DELIVERABLES
Contractor shall be responsible for providing to CPA:
• A full range of municipal advisory services necessary for CPA to evaluate, structure, and execute up to three additional prepay transactions.
• Guaranteed investment contract (“GIC”) brokerage services in order to solicit bids from investment agreement providers and investment agreements that, in each case, meet the requirements of the Trust Indenture under which the Bonds are issued and the related transaction documents.
Contractor will not bid on nor offer to provide any investment agreement or other investment.
Contractor must complete the following tasks or as the tasks may be amended by CPA, from time to time at CPA's sole discretion, and all tasks must be completed according to the timelines set forth below:
Municipal Advisory Services:
Task #1: Project Management Support
Provide project management support, including:
a. Review and comment on all documentation through attendance (in person or as necessary by virtual meetings) at all working group/document sessions with CPA’s staff, consultants, and other professionals.
Deliverables for Task #1:
• Ongoing coordination with CPA staff to plan and manage timely completion of activities within the Scope of Work detailed in Exhibit A.
Timeline for Task #1:
• Ongoing tasks to be completed by Contractor over the Term of the engagement, with anticipated end by Q2 2027.
Task #2: Prepay Transaction Management, Technical Support and Analysis Provide the following services to support each prepay bond transaction:
• Conduct financial modeling/analytics and related consulting, as directed by CPA. • Provide independent pricing and structuring recommendations for the bonds. • Analyze and provide recommendations concerning the acceptance of any underwriting offer.
• Analyze and provide recommendations concerning the acceptance of any third-party funding recipient.
• Review and comment on investor material (the “investor roadshow”) supporting the marketing of prepay bonds. Contractor makes no guaranty, warranty, or representation with respect to the accuracy or completeness of disclosures provided to investors. • Monitor order flow during the retail and institutional order periods. • Collect and consolidate all anticipated costs of issuance for inclusion in the prepay Agenda Page 25
13 bond sizing.
• Provide an exhibit to the tax certificate supporting the reasonable expectation that the prepay bonds will run to term assuming at least one successful repricing (the “MG Tax Certificate Exhibit”).
• Assist in RFP for reserve fund and debt service fund investment. • Verbal recommendation of acceptance of any commodity swap pricing to be supplemented by transaction report.
• Verbal recommendation of acceptance of GIC award to be supplemented by transaction report.
• Verbal recommendation of acceptance of any interest rate swap pricing to be supplemented by transaction report.
• Verbal recommendation of acceptance of funding recipient selection. • Review all prepay documentation. Identify risks to CPA and recommend risk mitigants.
Deliverables for Task #2:
• For each prepay transaction, transaction modeling as requested by CPA and in conjunction with any modeling by the underwriter.
• For each prepay transaction, verbal recommendation of acceptance of underwriting offer, commercial terms of prepay contracts and agreements, funding recipient selection, commodity / interest rate swap pricing, and GIC award to be supplemented by the transaction report.
• For each prepay transaction, the MG Tax Certificate Exhibit.
Timeline for Task #2:
• For each prepay transaction, verbal recommendation of acceptance of underwriting offer, commodity / interest rate swap pricing, and GIC award provided on the bond pricing date.
• For each prepay transaction, delivery of the MG Tax Certificate Exhibit at closing. • For each prepay transaction, estimation of Costs of Issuance throughout and finalized on bond pricing date.
Task #3: Swap/Hedge Advisory Services
Provide the following swap/hedge advisory services as needed to support each prepay bond transaction:
• Serve as designated qualified independent representative (“QIR”) in the provision of general swap advisory services related to any swap-related communication, interaction, or other discussion (“Swap Communication”) between conduit issuer and swap dealers (as defined by the Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”).
• Analyze and model alternative hedge structures and provide price indications. • Review and comment on all hedge documentation and business terms. • Coordinate with prepaid supplier on behalf of CPA in counterparty selection. • Verbal recommendation of acceptance of swap pricing to be supplemented by transaction report.
• Negotiate the pricing terms and structure with the counterparty(s). • Review and comment on swap documents in conjunction with CPA staff and counsel.
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14 Deliverables for Task #3:
• For each prepay transaction, verbal recommendation of acceptance of swap pricing to be supplemented by transaction report.
• Successful closing of swap transaction for the prepay transaction.
Timeline for Task #3:
• Deadline for completion of swap transaction(s) will be determined as needed.
Task #4: Post-Pricing Activities
Provide the following post-pricing services for each prepay transaction:
• Coordinate post-closing activities to ensure the timing and accurate transfer of funds, including distribution of the flow of funds memorandum prepared by bond underwriter. • Collect invoices for all costs of issuance and prepare Costs of Issuance Distribution and Wire Instruction for use by bond trustee.
• Prepare a transaction report summarizing the executed prepay transaction, which may include fairness opinions, fair market value certifications, and analyses and evaluations of one or more aspects of the transaction including the MG Tax Certification, commodity swap and any interest rate swap pricing, bond pricing, GIC pricing, supplier’s initial term discount factor, Termination Payment Schedule sufficiency, etc.
Deliverables for Task #4:
• For each prepay transaction, a Transaction report documenting the executed transaction.
Timeline for Task #4:
• For each prepay transaction, a Transaction report to be provided within thirty (30) days following the close of the transaction.
Communications with and Assistance to Issuer:
CPA and Contractor acknowledge and agree that CPA, in its sole discretion, shall determine to have bonds issued on its behalf by a potential conduit issuer(s) (“Issuer”). In the course of providing services under the Agreement, and at the direction of CPA:
a. It may be necessary or desirable for Contractor to communicate with Issuer regarding certain limited matters with respect to the bonds.
b. It may be necessary or desirable for Contractor to provide assistance to Issuer with respect to certain administrative matters in connection with the bonds and the transaction documents (such as assistance with on-boarding and “know your customer” paperwork). c. The sole purpose of such communications and assistance shall be to implement CPA’s directions to Contractor such that CPA and Issuer may act in a coordinated manner. d. All such communications and assistance shall be non-advisory and shall be in furtherance of, and shall be deemed not to conflict with, the municipal advisory services provided by Contractor to CPA, and shall not cause Contractor to be deemed to be a municipal advisor to Issuer.
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15 GIC Brokerage Services:
Task #5: Conduct Solicitation for Investment Provider
Provide the following services to support each prepay bond transaction:
• Identify the types of investment agreements and those investment agreement providers that meet the requirements of the Trust Indenture(s) and the related transaction documents.
• Review certain transaction documents for the structured prepayment(s) being financed by the Bonds—the Official Statement, the Trust Indenture, and the Clean Energy Purchase Contract—to inform preparation of the bid specifications. • Prepare bid specifications (“RFQ”) and review with the working group(s). • Identify appropriate bidders.
• Send the RFQ to bidders and contact bidders to discuss investment(s) and answer any questions.
• Review bidder conditions and requirements and discuss as appropriate with CPA, the Issuer, Financial Advisor, and Bond Counsel.
• Accept bids at specified time via e-mail.
Deliverables for Task #5:
• For each prepay transaction, completion and distribution of RFQ package to candidate investment agreement providers and investment agreements.
Timeline for Task #5:
• For each prepay transaction, distribution of RFQ to bidders at least two (2) days prior to Bond Pricing Date.
Task #6: Support Evaluation and Selection of Investment Provider Provide the following services to support each prepay bond transaction:
• Prepare bid results and discuss the results with the CPA, Issuer, Financial Advisor, and Bond Counsel to determine which bid(s) best meet the investment objectives for the invested accounts. Upon Issuer approval, notify the winning bidder(s).
Deliverables for Task #6:
• For each prepay transaction, an evaluation of bid results with supporting memorandum.
Timeline for Task #6:
• For each prepay transaction, an evaluation of investment provider bids by the Bond Pricing Date.
• For each prepay transaction, the delivery of supporting memorandum to CPA by the day after the Bond Pricing Date.
Task #7: Oversee Closing Process
Provide the following services to support each prepay bond transaction:
• Prepare GIC confirmation letter for Issuer.
• Send authorizing documents to winning bidder(s) and associated counsel. • Monitor document preparation (investment agreements, any guarantees, closing certificates, and opinions) prepared by the investment agreement provider(s) from first Agenda Page 28
16 draft to close.
• Confirm that investment documents comply with bid specifications. • Review and comment on investment contract documents with Issuer, bond counsel, tax counsel, and other working group members, as appropriate. • Act as liaison between working group members and investment provider’s counsel. • Confirm final documents received and funds transferred to investment provider.
Deliverables for Task #7:
• For each prepay transaction, execution of investment contract final documents and additional documents, as applicable.
• For each prepay transaction, a written confirmation of receipt of final documents and funds transferred to investment provider(s).
Timeline for Task #7:
• For each prepay transaction, execution of all documents by Bond Settlement Date (approximately 1-2 weeks following the Bond Pricing Date). • For each prepay transaction, a written confirmation of receipt of final documents and funds transferred to investment provider(s) by Bond Settlement Date.
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Exhibit B – [Intentionally Left Blank]
Agenda Page 30
Exhibit C – Compensation
Contractor’s compensation for the Services (the “Transaction Fees”) shall be paid on a contingency basis as specified below. No compensation shall be payable to Contractor until after the Services are completed.
Municipal Advisory Services (Tasks 1-4):
The Transaction Fee for the municipal advisory services set forth in Tasks 1-4 of Exhibit A (whether by an offering or placement of debt obligations, a bank loan, or other financing arrangement), payable at closing of each transaction, is a flat fee of Two Hundred Thousand Dollars ($200,000), regardless of transaction size or timing.
In addition to the Transaction Fee, Contractor shall be paid a fee for the written report set forth in Exhibit A, Task 4 equal to Fifty Thousand Dollars ($50,000) (“Report Fee”). The written report must be submitted to CPA within thirty (30) days of the closing date of each prepay transaction as set forth in Exhibit A, Task 4, or the Report Fee will be forfeited. The Report Fee shall not be invoiced or paid until the written report is submitted to CPA.
For each prepay transaction, the total of the Transaction Fee and Report Fee shall not exceed Two Hundred Fifty Thousand Dollars ($250,000).
CPA reserves the right to terminate the Services prior to bond issuance. If CPA terminates the Agreement, for convenience or for default, more than thirty (30) days prior to the closing date of the prepayment financing, CPA shall have no obligation to pay the Transaction Fee or the Report Fee.
If CPA terminates the Agreement for convenience, thirty (30) or fewer days prior to the closing date of the prepayment financing, Contractor shall be paid on the closing date of the prepayment financing seventy-five percent (75%) of the Transaction Fee from bond proceeds.
If Contractor terminates the Agreement, no Transaction Fee or Report Fee shall be payable by CPA.
Contractor shall track any requested compensation with sufficient detail and in a manner that may be audited by CPA.
Any and all proceeds disbursed as a result of bond issuance(s) resulting from the Services, less any compensation paid to Contractor, are the sole property of the bond trust estate(s).
GIC Brokerage Services (Tasks 5-7):
In the event that CPA decides, in its sole discretion, to proceed with an investment contract and the investment transaction (collectively “Investment Transaction”) successfully closes, the Transaction Fee for the GIC brokerage services as set forth in Tasks 5-7 of Exhibit A shall be a flat fee of Thirty-One Thousand Five Hundred Dollars ($31,500.00). The Transaction Fee for GIC brokerage services is payable at closing of each Investment Transaction and shall be paid exclusively from the proceeds of the Investment Transaction by the selected investment provider(s).
A description of fees paid must be included in the final documentation.
Up To and Not to Exceed Figure:
Agenda Page 31
The Transaction Fees for all Services and Deliverables under this Agreement shall be up to and not to exceed the “Maximum Amount” below, which is the combined total of the Transaction Fees for the municipal advisory services and GIC brokerage services for up to three (3) transactions.
Maximum Amount Up to $844,500
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Exhibit D – Required Disclosure of Violations of Compliance Policies and Procedures
MG Advisory Corp takes seriously its legal and compliance obligations and maintains written compliance policies, written supervisory procedures, systems, processes, or guidelines reasonably designed to achieve compliance with industry best practice and professional standards, applicable laws, regulations, rules, or other legal requirements (“Compliance Policies and Procedures”). MG Advisory Corp shall comply with Municipal Securities Rulemaking Board (“MSRB”) Rule G-42, as further detailed in MG Advisory Corp’s G-42 Disclosure, and any MSRB Rule related to the services provided herein.
Any failure by a trader or other MG Advisory Corp personnel to follow Compliance Policies and Procedures will be cause for disciplinary action by MG Advisory Corp management, including written reprimands, docking of wages, loss of bonus eligibility, suspension, and/or termination of employment.
MG Advisory Corp shall report to CPA any violation by MG Advisory Corp staff of Compliance Policies and Procedures or MSRB Rule G-42 or related MSRB Rule within 10 business days of the identification of such violation together with a description of the actions taken by MG Advisory Corp to identify and correct the violation.
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Exhibit E – G-42 Disclosure
G-42 Regulatory Disclosures
Pursuant to Municipal Securities Rulemaking Board (“MSRB”) Rule G-42, MG Advisory Corp is required to make certain written disclosures to its municipal advisory clients which include, amongst other things, information regarding conflicts of interest and any legal or disciplinary events of MG Advisory Corp and its associated persons. Therefore, MG Advisory Corp is making the following disclosures.
Conflicts of Interest
MG Advisory Corp represents that in connection with the issuance of municipal financial product transactions, MG Advisory Corp may receive compensation from a client for services rendered, which compensation is contingent upon the successful closing of a transaction and/or is based on the size of a transaction. Consistent with the requirements of MSRB Rule G-42, MG Advisory Corp hereby discloses that such contingent and/or transactional compensation may present a potential conflict of interest regarding MG Advisory Corp’s ability to provide unbiased advice because it could create an incentive for MG Advisory Corp to advise its client to complete a financing or to alter the structure of a financing in order to ensure or increase its compensation. This conflict of interest is mitigated by our fiduciary duty to our municipal entity clients and by our duty of care for other municipal advisory clients.
If MG Advisory Corp becomes aware of any additional potential or actual conflict of interest after this disclosure, MG Advisory Corp will promptly update this disclosure.
Legal or Disciplinary Events
MG Advisory Corp does not have any legal events or disciplinary history on MG Advisory Corp’s Form MA and Form MA-I, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation. The Issuer may electronically access MG Advisory Corp’s most recent Form MA and each most recent Form MA-I filed with the Commission by searching for “MG Advisory” at the following website:
www.sec.gov/edgar/searchedgar/companysearch.html
There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA-I filed with the SEC. If any legal or regulatory action is brought against MG Advisory Corp that is material to our clients’ evaluation of MG Advisory Corp or the integrity of MG Advisory Corp’s management or advisory personnel, MG Advisory Corp will promptly update this disclosure.
G-10 Disclosure
Pursuant to Municipal Securities Rulemaking Board Rule G-10, on Investor and Municipal Advisory Client Education and Protection, Municipal Advisors are required to provide certain written information to their municipal entity and obligated person clients which include the following:
MG is currently registered as a Municipal Advisor with the U.S. Securities and Exchange Commission and the Municipal Securities Rulemaking Board.
Within the Municipal Securities Rulemaking Board (“MSRB”) website at www.msrb.org, the Issuer may obtain the Municipal Advisory client brochure that is posted on the MSRB website. The brochure describes the protections that may be provided by the MSRB Rules along with how to file a complaint with financial regulatory authorities.
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Record Retention
Effective July 1, 2014, pursuant to the Securities and Exchange Commission (SEC) record retention regulations, MG is required to maintain in writing, all communication and created documents between MG and the Issuer for 5 years.
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Staff Report – Agenda Item 3
To: Board of Directors
From: Karen Schmidt, Senior Director, Rates and Strategy Reviewed By: Matthew Langer, Chief Operating Officer
Nancy Whang, General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Dynamic Rate Pilot Enrollment Cap Increase
Date: February 5, 2026
RECOMMENDATION
Adopt Resolution No. 26-02-100 approving the Dynamic Rate Pilot (“DRP”) Enrollment Cap Increase and delegation of authority to the Chief Executive Officer to increase cap.
BACKGROUND
The California Energy Commission (“CEC”) established Load Management Standards (“LMS”) in 1979 to increase electricity demand flexibility by requiring the creation of residential load control programs, marginal cost pricing, and large commercial and industrial time-of-use rates. In 2023, CEC revised its LMS regulations with the intention to increase the adoption of marginal cost-based electricity rates1 to reduce or shift electricity consumption to align with grid reliability and carbon emission market signals.
The revised LMS regulations require large community choice aggregators (“CCAs”) like CPA to have submitted an LMS Compliance Plan by April 1, 2024, and to submit at least 1 Marginal cost-based rates are rates that automatically vary on a daily and/or hourly-basis to reflect the actual cost of energy in the California Independent System Operator (“CAISO”) market.
Agenda Page 36
Board of Directors Item 3
one marginal-cost based electricity rate to their governing board for approval by July 2025.
In March 2024, CPA’s Board approved an initial LMS Compliance Plan, which was submitted to the CEC on March 15, 2024. After discussions with the CEC staff, CPA and CEC staff agreed that the most viable path to satisfying the requirement for a marginal-cost based rate is to allow CPA customers to participate in SCE’s Dynamic Rate Pilot (“SCE Pilot”) as described below. In July 2025, the CPA Board approved a revised LMS Compliance Plan (“Revised Plan”, attached for reference) reflecting CPA’s planned participation in the SCE Pilot, which was submitted to the CEC on July 11, 2025 and approved by the CEC on August 13, 2025.
The SCE Pilot, approved by the California Public Utilities Commission in January 2024, provides participating customers with a dynamic rate that changes every hour of every day based on CAISO day-ahead market prices. The pilot program duration is from July 2025 through December 2027. CPA customers were not able to enroll in the pilot until January 2026 due to SCE implementation delays. Enrolled CPA customers will remain on their Otherwise Applicable Tariff (“OAT”) (e.g. their current rates) and will continue to receive and pay their regular monthly OAT bills while participating in the SCE Pilot. They will have access to a monthly “shadow bill” from SCE that calculates what their delivery and generation charges would have been if they were on SCE’s hourly dynamic rates.
Customers participating in the program can adjust their energy usage manually or through the use of automated technologies, with or without the support of an Automated Service Provider (“ASP”). After every 12 months of enrollment in the pilot, and at the conclusion of the pilot, if a customer’s total shadow bill is lower than their total OAT bill, the customer will receive a bill credit for the difference between the two bills. If a customer’s shadow bill is higher than their OAT bill, the customers will not be charged the difference. Per CPUC rules, CPA will receive a $20 per kilowatt-year (kW-yr) incentive payment for load enrolled in the program, up to a maximum of $1,800,000 over the course of the pilot. CPA is paid this incentive payment irrespective of whether the shadow bill is higher or lower than their OAT bill.
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Board of Directors Item 3
As indicated in the Revised Plan, CPA planned to cap enrollment for its customers at
7.5 MW, which is 15% of SCE’s targeted program capacity of 50 MW, based on CPA’s load share in SCE’s service territory. Since launch of the pilot in July 2025, SCE quickly met and exceeded their 50 MW target with the enrollment of a small number of large commercial customers, and currently reports having enrolled approximately 172 MW in the pilot, including approximately 400 residential customers participating in managed EV charging programs. SCE has indicated that it does not plan to cap enrollment in the pilot for either bundled or CCA customers.
DISCUSSION
Staff has conducted additional analysis of the potential financial impacts to CPA of participation in the SCE Pilot and has determined that the impact is likely to be neutral or beneficial to CPA for up to at least 45 MW of enrollment over the two years of the pilot; 45MW is the approximate capacity that would be covered by the CPUC’s $20/kW-yr enrollment incentive. Staff analysis indicates that the potential costs of the pilot, including the cost of bill credits paid to customers whose shadow bills are lower than their OAT bill, is likely to be small and to be more than offset by the CPUC enrollment incentive.
Based on the unexpectedly high level of customer interest in the pilot, staff believes that CPA’s 7.5 MW enrollment cap for the pilot could be quickly met or exceeded by the enrollment of a small number of large commercial customers, including customers who have already enrolled their bundled SCE accounts in the pilot. Closing the program to new enrollments after reaching the 7.5 MW cap could limit access to the program for CPA residential and small business customers and could lead customers to opt out of CPA service in order to participate in the pilot through SCE. Given this opt-out risk and the expected neutral to positive financial impact of enrolling up to 45 MW in the pilot, staff propose increasing the pilot enrollment cap to 45 MW.
Staff will analyze actual pilot results once enrollment has begun to assess whether it would be beneficial to CPA to increase the pilot enrollment cap above 45 MW based on
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Board of Directors Item 3
the pace and customer mix of enrollments, customer behavior in response to the dynamic price signals, and impact on CPA energy costs. Staff requests that the CEO be delegated authority to increase the enrollment cap by an additional 25% above 45 MW if analysis indicates that it will be financially beneficial to CPA to do so.
Changing the enrollment cap does not require an amendment or resubmission of CPA’s Revised Plan to the CEC.
ATTACHMENTS
1. Resolution 26-02-100 Approving Dynamic Rate Pilot Enrollment Cap Increase
2. CPA’s Revised LMS Compliance Plan
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RESO NO. 26-02-100
RESOLUTION NO. 26-02-100
RESOLUTION OF THE BOARD OF DIRECTORS OF CLEAN
POWER ALLIANCE OF SOUTHERN CALIFORNIA
ADOPTING AND APPROVING THE DYNAMIC RATE PILOT
ENROLLMENT CAP INCREASE AND DELEGATION OF
AUTHORITY TO THE CHIEF EXECUTIVE OFFICER TO
INCREASE CAP
THE BOARD OF DIRECTORS OF CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA HEREBY RESOLVES AS FOLLOWS:
WHEREAS, Clean Power Alliance of Southern California (formerly known as Los Angeles Community Choice Energy Authority) (“Clean Power Alliance” or “CPA”) was formed on June 27, 2017;
WHEREAS, Section 25403.5 of the California Public Resources Code authorizes the California Energy Commission (“CEC”) to adopt rules and regulations relating to electrical load management in each utility service area; WHEREAS, the CEC first adopted load management standards (“LMS”) regulations in 1979 and amended its LMS regulations in January 2023 to require large community choice aggregators (“CCA”) that provide more than 700 GWh of electricity to customers in a calendar year to submit an LMS compliance plan (“Plan”) beginning on April 1, 2024;
WHEREAS, LMS regulations required a CCA’s LMS Plan to specify how the CCA will encourage the use of electrical energy at off-peak hours, control daily and seasonal peak loads to improve electric system efficiency and reliability, lessen or delay the need for new electrical capacity, reduce fossil fuel consumption and greenhouse gas emissions, and explain how the CCA will use marginal cost-based rates to achieve such objectives, and further required that a CCA apply to its governing body for approval of at least one marginal cost-based rate;
WHEREAS, on March 7, 2024 CPA’s Board of Directors approved Resolution No. 24-03-062, approving submission of CPA’s Load Management Standards Plan (“Initial Plan”) to the CEC’s Executive Director for their approval, which was submitted to the CEC on March 15, 2024;
WHEREAS, on July 10, 2026 CPA’s Board of Directors approved Resolution No. 25-07-090, approving submission of a Revised Load Management Standards Compliance Plan (“Revised Plan”) to better meet CEC’s interpretation of the LMS requirements by participating in Southern California Edison Company’s (“SCE’s”) Expanded Dynamic Rate Pilot (“SCE Pilot”), pursuant to guidance from CEC Staff regarding CPA’s Initial Plan;
WHEREAS, CPA indicated in the Revised Plan that it planned to cap enrollment in the SCE Pilot at 7.5 megawatts (“MW”), which is 15% of SCE’s targeted program capacity of 50 MW, based on CPA’s load share in SCE’s service territory; and
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RESO NO. 26-02-100
WHEREAS, the CPA Board has received information regarding the high level of customer interest in the SCE Pilot, the likelihood that enrolling up to at least 45 MW in the pilot will have a neutral or positive financial impact on CPA, the potential negative customer impacts of limiting CPA customer enrollment to 7.5 MW, and the further analysis that will be conducted to evaluate financial impacts once enrollment in the SCE Pilot has begun.
NOW, THEREFORE, BE IT DETERMINED, AFFIRMED, AND ORDERED BY
THE BOARD OF DIRECTORS OF THE CLEAN POWER ALLIANCE OF SOUTHERN
CALIFORNIA THAT
1. The enrollment cap for customer participation in the SCE Pilot is increased to 45 MW.
2. The Chief Executive Officer is delegated authority to increase the SCE Pilot enrollment cap by an additional 25% if an analysis shows that an increase in enrollment will be financially beneficial for CPA.
ADOPTED AND APPROVED this 5th day of February 2026.
____________________________
Deborah Klein Lopez, Chair
ATTEST:
_________________________
Gabriela Monzon, Secretary
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DOCKETED
Docket Number: 23-LMS-01
Project Title: Load Management Standards Implementation TN #: 264676
Document Title: Clean Power Alliance of Southern California's Revised Load Management Standards Compliance Plan
Description: N/A
Filer: Dusty Shaller
Organization: Clean Power Alliance of Southern California Submitter Role: Public Agency
Submission Date: 7/11/2025 2:37:05 PM
Docketed Date: 7/11/2025
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801 S. Grand Ave., Suite 400, Los Angeles, CA 90017
cleanpoweralliance.org
July 11, 2025
Mr. Drew Bohan
Executive Director
California Energy Commission
1516 Ninth Street
Sacramento, California 95814
RE: Submission of Clean Power Alliance of Southern California’s Board-Adopted Revised Load Management Standards Compliance Plan to the CEC Executive Director Pursuant to California Code of Regulations, Title 20, Division 2, Chapter 4, Article 5, Section 1623.1(a)(1) & Section 1623.1(b)(4)
Dear Mr. Bohan:
Pursuant to California Public Resources Code Sections 1621 and 1623.1, Clean Power Alliance of Southern California (“CPA”) submits its Revised Load Management Standards Compliance Plan to California Energy Commission Docket Number 23-LMS-01.
CPA’s Board of Directors adopted CPA’s Revised Load Management Standards Compliance Plan during a duly noticed public meeting held on July 10, 2025. Enclosed is CPA’s submittal of its Revised Load Management Standards Compliance Plan.
Please find CPA’s board packet presented to CPA’s Board of Directors on July 10, 2025, which includes CPA’s staff report, Revised Load Management Standards Compliance Plan, and resolution at the link below.
https://cleanpoweralliance.primegov.com/Public/CompiledDocument?meetingTemplateId=3594 &compileOutputType=1
If you have any questions, or additional information is required, please contact me at [email protected].
Sincerely,
Alexis Rizo
Regulatory Analyst II
[email protected]
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801 S. Grand Ave., Suite 400, Los Angeles, CA 90017
cleanpoweralliance.org
Clean Power Alliance of Southern California’s Revised Load Management Standards Compliance Plan as Ordered by §1623.1(a)(1)
Chapter 1: Introduction
1) Executive Summary
The California Energy Commission’s (“CEC”) 2022 Revised Load Management Standards (“LMS”)
1 amended its electric load management standards to encourage the use of electrical energy during off-peak hours.2 The amendments, which became effective on April 1, 2023, updated the procedures for the submittal of plans for approval, requests for exemptions from the requirements or delays of compliance with the requirements, and requests for modifications of approved plans.
To accomplish the goals of the LMS, the regulations require California’s large investor own utilities (“IOUs”), large publicly owned utilities (“POUs”), and large community choice aggregators (“CCA”) that provide more than 700 GWh of electricity to customers in any calendar year (“Large CCA(s)”), to either:
(1) develop and propose marginal cost-based rates that change at least hourly3; Or, (2) If an entity determines not to propose new rates because in its evaluation it has found that (a) implementing new rates would not materially reduce peak load, or (b) if the implementation is not technologically feasible or cost-effective, the entity must offer cost-effective load flexibility programs.4
If a Large CCA offers cost-effective load-flexibility programs, such programs should provide at least one option for automating response to the CEC’s Market Informed Demand Automation Server (“MIDAS”) signals for each customer class that the entity’s rate-approving body determines such a program will materially reduce peak load.
Clean Power Alliance of Southern California (“CPA”) is a Large CCA and a load-serving entity (“LSE”) that provides more than 700 GWh of electricity to customers in any calendar year to 33 cities and the counties in Los Angeles and Ventura Counties, representing roughly one million customers. CPA’s initial LMS compliance plan (“Initial CPA Plan”) was approved by its Board of Directors (“Board”) on March 7, 2024. The Initial CPA Plan was then submitted to the CEC’s Executive Director via email and filed in LMS docket 23-LMS-01 on March 15, 2024.
1 California Energy Commission, Title 20, California Code of Regulations, Adopts Section 1623.1, Amends Section 1621 and 1623
2 Title 20, Division 2, Chapter 4, Article 5 of the California Code of Regulations §1621, et seq. (“LMS Regulations”). All section references are to the LMS Regulations unless otherwise specified. 3 Section 1623.1 (b)(2) and Section 1623.1 (b)(4)
4 Section 1623.1(a)(1).(A)-(B)
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2 This CPA Revised Plan (“Revised Plan”) proposes to meet the requirements of the LMS Regulations by participating in the Southern California Edison Company (“SCE”) Expanded Dynamic Rate Pilot (“SCE Pilot”)5 until December 31, 2027, as explained further in Chapter 3, Section 5 to this Revised Plan. CPA’s Board approved this Revised Plan on July 10, 2025 at a duly noticed meeting. CPA submits this Revised Plan to the LMS docket for approval. CPA will also submit a Tier 1 Advice Letter to the California Public Utilities Commission (“CPUC”) to inform the CPUC of CPA’s participation in the SCE Pilot. SCE and CPA currently estimate that SCE can begin enrollment of CCA customers in the SCE Pilot is November 2025.6 All customer classes are eligible to participate in the SCE Pilot. CPA will cap enrollment of CPA customers in the SCE Pilot at 15% of SCE’s 50 megawatt (“MW”) enrollment target (7.5 MWs), in proportion to CPA’s load share ratio within SCE territory. The SCE Pilot dynamic rate is a marginal cost-based rate. At this time, CPA does not have sufficient data to conclude that implementing marginal cost-based rates would be cost-effective, technologically feasible, and/or beneficial to CPA’s customers. Any future implementation of marginal cost-based rates will depend on technology, costs, anticipated customer adoption, data availability, and other factors, including results from CPA’s participation in the SCE Pilot. CPA will continue to engage in good faith efforts to meet the LMS program goals.
2) Introduction
a) CPA Joint Power Authority and Community Choice Aggregation Introduction CPA is a CCA and an LSE that provides more than 700 GWh of electricity service in any calendar year to 35 cities and counties in Los Angeles and Ventura Counties, representing roughly three million residents and businesses.
7 CPA was established in 2017 by Los Angeles County, and the cities of Rolling Hills Estates and South Pasadena as a California Joint Powers Authority and the administrator of a CCA program. CPA’s Board members are locally-elected officials who represent and serve CPA’s communities.
CPA purchases electricity (or generation services) for its customers while working in partnership with Southern California Edison (“SCE”), who continues to deliver power and maintain the grid. Since CPA provides the generation services, CPA is only responsible for determining the generation component of the marginal cost-based rate based on evaluation factors prescribed in the 2022 Revised LMS.
Therefore, this Revised Plan only evaluates the generation component of the marginal cost-based rate. b) LMS Summary and Regulations that Large CCAs Must Comply With Load management is defined as “any utility program or activity that is intended to reshape deliberately a utility’s load duration curve.”8 The LMS is intended to support the goals of slowing down rising electricity costs and aiding grid reliability by improving time-of-use efficiency of electricity consumption through increased demand flexibility of the energy system. 5 D.24-01-032, Decision to Expand System Reliability Pilots of Pacific Gas and Electric Company and Southern California Edison Company at p.40
6 Given current implementation delays in the SCE Pilot, pumping and agriculture customers may not be able to enroll in the SCE Pilot until December of 2025.
7 AB 117 (2002) enabled the establishment of CCAs. 8 Public Resources Code (“PRC”) Section 25132
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3 The LMS requires IOUs, POUs, and large CCAs in California to give all customers access to rates and/or programs that provide information needed to optimize customer energy use. Specifically, the amendments require CCAs to develop marginal cost-based rates or public programs structured according to the requirements below:
” . . . The plan shall include consideration of programs and rate structures as specified in Section 1623.1 (b)-(d).
(A) The plan must evaluate cost effectiveness, equity, technological feasibility, benefits to the grid, and benefits to customers of marginal cost-based rates for each customer class.
(B) If after consideration of the factors in Subsection 1623.1(a)(1)(A) the plan does not propose development of marginal cost-based rates, the plan shall propose programs that enable automated response to marginal cost signal(s) for each customer class and evaluate them based on their cost-effectiveness, equity, technological feasibility, benefits to the grid, and benefits to customers.9 (Emphasis
added.)
As stated in Chapter 1, Section 2(a) of this document, CPA is only responsible for evaluating the marginal cost-based rate’s generation component. This Revised Plan complies with the requirement provided in California Code of Regulations (“CCR”) Sections 1623.1(a)(1), as explained in Chapter 3, Section 5. c) CPA Plan Administration
i) Board Approval Process
Section 1623.1(a)(1) states that within one year of April 1, 2023, each Large CCA shall submit a compliance plan that describes how the CCA will meet the goals of encouraging the use of electricity during off-peak hours, encouraging the control of daily and seasonal peak loads to improve electric system efficiency and reliability, lessening or delaying the need for new electrical capacity, and reducing fossil fuel consumption and greenhouse gas emissions. The plan must be submitted to the CCAs rate-approving body in a duly noticed meeting and submitted to the CEC within 30 days after adoption of a plan.10 This Revised Plan documents how CPA will meet the goals of the LMS and provides a description of how CPA will comply with each of the CEC regulation elements provided in the subsequent sections.
The Initial CPA Plan was approved by CPA’s Board at a duly noticed meeting on March 7, 2024. This Revised Plan was presented to CPA’s Board and approved at a duly noticed meeting on July 10, 2025. ii) Submission of Plan to the CEC
As required in Section 1623.1(a)(1), CCAs are required to submit a compliance plan that is consistent with Section 1623.1 to its rate-approving body for adoption. The Initial Plan was reviewed and approved by its Board (CPA’s rate-approving body) on March 7, 2024, and submitted on March 15, 2024, to the CEC.
9 Section 1623.1(a)(1). 10 Section 1623.1(a)(3)(A).
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4 In March of 2025, CEC Staff began discussions with CPA regarding its submitted Initial CPA Plan and subsequently provided CPA with assistance in developing this Revised Plan to meet the approval of the CEC’s Executive Director.
This Revised Plan documents how CPA will meet the goals of the LMS and provides a description of how CPA will comply with each of the CEC regulation elements provided in the subsequent sections.
This Revised Plan was presented to CPA’s Board and approved at a duly noticed meeting on July 10, 2025. CPA submits this Revised Plan to the CEC’s LMS docket. iii) Triennial Plan Review
Section 1623.1(a)(1)(C) requires each Large CCA to review its compliance plan at least once every three years. As mentioned previously, CPA submitted its Initial CPA Plan to the CEC on March 15, 2024.
This Revised Plan was submitted to CPA’s Board and approved at a duly noticed meeting on July 10, 2025. CPA submits this Revised Plan to the CEC’s LMS docket. This Revised Plan will be reviewed by CPA at least once every three years following the date of adoption. Any material Plan change or update to the Revised Plan will also be submitted to CPA’s Board for approval and will be subsequently submitted to the CEC.
iv) Annual Reporting
Section 1623.1(a)(1)(C) requires each CCA to submit to the Executive Director of the CEC annual reports demonstrating their implementation of plans. The reports shall be submitted one year after plans are adopted by the CEC and annually thereafter. CPA will submit annual reports beginning one year after this Revised Plan is adopted by the CEC and annually thereafter describing the implementation of this Plan.
Chapter 2: Price Signals Via MIDAS
1) Publication of Machine-Readable Rates in MIDAS Overview11 MIDAS was developed by the CEC to provide access to utilities’ time-varying rates, greenhouse gas emission signals, and California Independent System Operator (“California ISO”) FlexAlerts. MIDAS is the principal tool supporting the implementation of LMS. Section 1623.1(c), as modified by Order NO:
23-0531-10.12 Section 1623.1(c) require Large CCAs to populate their time-dependent rate information into MIDAS no later than three (3) months after April 1, 2023. This section describes CPA’s plan to meet these requirements.
Time-Dependent Rate Submission to MIDAS via the MIDAS API a) Time-Dependent Rate Submission to MIDAS via the MIDAS API 11 Section 1623.1(c) 12 Order No: 23-0531-10, In the matter of: Joint Parties’ Request for Delay of July 1, 2023, MIDAS Rate Upload Deadline, p. 5 Agenda Page 47
5 On June 9, 2023, CPA, through Calpine Energy Solutions (“Calpine”), uploaded CPA’s rates into MIDAS server. Calpine currently has authorization to upload CPA’s time-dependent rates and any time-dependent rate updates to the MIDAS server. This section of the CPA Plan details Calpine’s scope of work in coordination with CPA to meet the compliance requirements under the LMS. i) Existing Rates Uploaded to MIDAS
Please see attached file in Appendix 1.
ii) Proof of Rates Availability on MIDAS
Please see the attached Appendix 2 for CPA’s existing time-dependent rates that have been uploaded into MIDAS.
iii) Composite Rate Calculation and Submission Solution As mentioned previously, CPA only provides generation services to unbundled customers. As such, CPA has uploaded only its time-dependent rates for generation services into MIDAS. SCE is responsible for the transmission and distribution component. The composite rate calculation contains CPA’s customers’ (who are considered unbundled customers) full rate charges and it includes the CCA generation component of the rate and the IOU’s transmission and distribution component of the rate. In the spirit of mutual collaboration, CPA supports further discussions with SCE and the CEC to find a solution regarding how the composite rate calculation will be calculated, who is responsible to see out the calculation, who should report the calculation, and how it would be made available to customers. 2) Future Rate Uploads: Plan and Current Progress of Internal Infrastructure Upgrade for LMS-Compliant Submission of Current and Future Rates Calpine has and will continue to leverage their existing rate infrastructure to upload current active rates and future rates, which meets current compliance standards.
Calpine, or any of CPA’s future billing vendors, will continue to work on CPA’s submission of current rates. In such cases where there have been issues with uploading rates into MIDAS, Calpine (or any future vendor) will communicate with the CEC in order to comply with the rate upload obligation. 3) Plan to Provide Rate Identification Number(s)(“RIN(s)”) on Customer Billing Statements and Online Account Using Both Text and QR Code
a) Implementation Timeline
A testing plan and kick-off meeting with SCE, as CPA’s billing agent, and Calpine, as CPA’s billing vendor, was held on January 24, 2024, where CPA, Calpine, and SCE discussed a path forward to display RIN(s) on customer billing statements using both text and QR codes. SCE plans to implement RIN(s) in their internal system by March 21, 2024, with the expectation that the RIN will appear on customer bills starting April 1, 2024.
b) Billing System Update and Current Progress
Calpine will add the RIN into an existing Electronic Data Interchange (EDI) transaction and send it to SCE anytime Calpine generates a bill. SCE will then take this EDI 810 transaction and create the QR code, which will be shown on customer bills.
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6 c) Proposed Text Design and QR Code Design and Proposed on Bills SCE will provide the QR code for the CCA portion of the bill. The RIN, QR Code, and text will appear on CCA portion of the bill (as requested). A mockup bill that displays the RIN(s) and QR code has been provided by SCE.
d) QR Code Linked Webpage (if any) including timeline for webpage creations and finalization, webpage objectives, proposed contents, and considerations or plan to include LMS compliant programs and or rates available for the customer to encourage enrollment.
CPA will not link the QR code to a webpage. The QR code will only be a text code that contains the customer’s RIN. The QR code can be scanned when setting up new smart appliances or alternatively, the customer can type in their 16-digit RIN. This approach would make it easier for smart devices to find the RIN and connect to Single Statewide RIN Access Tool rather than being directed to a webpage. CPA may reconsider as more progress has been made on the development of the Single Statewide Standard Tool and accordingly will provide a timeline for webpage creation, webpage objectives, proposed contents, and how to include LMS compliant programs or rates to encourage enrollment if CPA decides to link a webpage to the QR code.
4) Plans and Current Participation in the Development of Single Statewide Standard Tool a) Development of Single Statewide Standard Tool
Please refer to the response in Chapter 2, Section (4)(b) of this Revised Plan. b) Implementation of Single Statewide Standard Tool
CPA has been working with the other regulated load serving entities (”LSEs”) on creating the statewide RIN tool pursuant to 20 CCR Section 1623(c). A proposed plan for the tool was submitted to the CEC for review on October 1, 2024. CPA will continue to work with other LSEs and the CEC to implement and maintain the statewide RIN tool in a timely manner subject to the tool’s approval by the Commission.
Chapter 3: Marginal Cost-Based Rates
1) Introduction to Marginal Cost-Based Rates Evaluation and Regulations Section 1623.1(a)(1) requires each Large CCA to evaluate the cost-effectiveness, equity, technological feasibility, benefits to the grid, and benefits to customers of marginal cost-based rates for each customer class. After evaluating marginal cost-based rates, the CCA may instead propose and evaluate specified programs and/or delay or modify compliance with the LMS requirements.13 Section1623.1(b)(2) requires Large CCAs within twenty-seven months of April 1, 2023, or by July 1, 2025, to apply to its rate-approving body for approval of at least one marginal cost-based rate. These 13 See Section 1623.1(a)(2)(A)-(D). A CCA’s rate approving body may approve a plan to delay or modify compliance if the rate approving body determines that the plan demonstrates that compliance with the LMS requirements would not be cost-effective or technologically feasible to implement.
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7 CCAs may also apply for approval of marginal cost-based rates that are offered by the IOUs in whose service areas the CCAs exist in.
Section 1623.1(b)(4) requires each CCA within fifty-one months of April 1, 2023, or by July 1, 2027, to offer to each of its electricity customers voluntary participation in either a marginal-based rate developed according to Section 1623.1(b)(2), if such rate is approved by the CCA’s rate-approving body, or a program identified according to Subsection 1623.1(b)(3).
This Chapter provides an overview of CPA’s current time-dependent rates and addresses the requirement to evaluate the implementation of marginal cost-based rates on the timeframe specified in the LMS.
2) Overview of CPA’s Current Time-Dependent Rates
CPA customers select their rates from three rate options: 100% Green Power (currently with 100% renewable energy content); Clean Power (currently with 50% renewable energy content); and Lean Power (currently with 40% clean energy content). CPA also offers time-of-use (“TOU”) rates, and these TOU rates vary by season and by TOU period.
a) Season
CPA TOU rates reflect two seasonal rate periods: Summer and Winter. Summer is from June 1 through September 30 of each calendar year, and Winter is from October 1 through May 31. b) TOU periods
The majority of CPA TOU rates contain three distinct TOU periods for each season, with a peak period from either 4:00 PM to 9:00 PM or 5:00 PM to 8:00 PM. Summer peak periods are only applicable during non-holiday weekdays while winter peak periods are applicable every day. CPA also offers a TOU rate for lighting customers with a peak period from 8:00 AM to 4:00 PM, and legacy TOU rates with a summer-only peak period from 12:00 PM to 6:00 PM.
c) CPA Rate Classes
Nearly all CPA customers are offered at least one time-dependent rate. CPA has 10 rate classes:
residential, small commercial, medium commercial, large commercial, industrial, pumping and agriculture, electric vehicle, lighting, traffic control, and wireless technology. Except for traffic control and wireless technology customers, all customers have access to TOU rates. Approximately 70% of CPA customers and 83% of CPA load are on TOU rates. In addition to TOU rates, CPA also offers load management programs and peak management pricing to particular customer classes which provide additional price signal mechanisms for enhanced demand flexibility (discussed further in Chapter 5). i) Residential Rates
CPA’s default residential rate is a TOU rate with a peak period from 4:00 PM to 9:00 PM. ii) Commercial, Industrial and Pumping and Agriculture Rates All of CPA’s commercial, industrial, and pumping and agriculture rate offerings are TOU rates.
Default rates have a peak period from 4:00 PM to 9:00 PM. Customers on default commercial, industrial, and agriculture and pumping rates are also eligible to participate in CPA’s Peak Management Pricing
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8 program, which provides an additional hourly price signal to encourage conservation during peak pricing events (discussed further in Chapter 5).
iii) Electric Vehicle Rates
All of CPA’s electric vehicle (“EV”) rate offerings are TOU rates with a peak period from 4:00 PM to 9:00 PM.
iv) Lighting Rates
CPA offers one lighting TOU rate with a peak period from 8:00 AM to 4:00 PM. 3) CPA’s Rate Development Process
a) Board of Directors approval
The setting of all retail rates for power sold by CPA is the responsibility of CPA’s Board. The Board typically adopts annual rate updates in June with an effective date of July 1, and may elect to implement interim rate changes throughout the fiscal year. i) Guiding Board Policy Objectives
CPA’s purpose, as articulated in its Joint Powers Agreement14, includes providing customers with rate options that are lower than, or competitive with, the IOU’s rates; promoting energy efficiency, demand response, and reduced energy consumption; and providing low-income customers with affordable and flexible energy options, including the provision of discounted rates to eligible low-income households. In its annual rate-setting process, CPA’s Board considers CPA’s cost of service, equitability, financial sustainability, affordability, rate stability, and competitiveness when adopting rate changes. ii) Rate Design and Implementation
CPA rate structures mirror SCE generation rate structures (e.g., seasons, TOU periods, demand charges) to minimize customer confusion and align generation and delivery price signals to shift or reduce load. Following adoption by CPA’s Board , CPA’s rates are implemented in collaboration with Calpine, CPA’s billing and data administrator, and SCE, which provides CPA customers with a single monthly bill that includes CPA generation charges along with SCE delivery charges. 4) Marginal Cost-Based Rate Evaluation
In this section, CPA describes its current qualitative evaluation of the possible advantages and drawbacks associated with marginal cost-based rates absent of quantitative data. CPA’s participation in the SCE Pilot will allow CPA’s staff to gather quantitative data to support evaluation of the cost-effectiveness, benefits to customers, and technological feasibility of offering marginal cost-based rates to each customer class after the SCE Pilot’s conclusion.
a) Cost-Effectiveness Evaluation
In this section, CPA provides a qualitative evaluation of the possible advantages and drawbacks associated with marginal cost-based rates. At present, there is not enough information available for CPA to conduct a quantitative assessment of the overall cost-effectiveness of these rates. 14 CPA Amended and Restated Joint Powers Agreement, November 3, 2022, https://files.cleanpoweralliance.org/uploads/2022/12/Amended-and-Restated-JPA-Final-11-03-2022-fully-executed.pdf
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9 i) Estimated Costs
Costs for implementing marginal cost-based rates will include rate design, information technology development and setup, and marketing, education, and outreach (“ME&O”). ii) Rate Design Costs
To ensure that marginal cost-based rate design both enables customer participation and is reflective of CPA’s cost to serve, CPA will likely incur incremental rate design costs related to customer outreach, market research, and pilot development. The outreach costs specifically within this section relate to rate design format. However, there may be some overlap between Rate Design Costs and ME&O Costs detailed below.
iii) Information Technology Costs
The implementation of marginal cost-based rates is expected to require substantial investment in new data management, analytical, billing, and reporting capabilities to handle the significant increase in volume and complexity of marginal cost-based rates that vary on an hourly or sub-hourly basis. iv) Marketing, Education, and Outreach (“ME&O”) Costs
Recruiting and retaining customers on marginal cost-based rates will require substantial investment in ME&O, both directly to customers and through partnerships with automated service providers (“ASPs”), SCE, community-based organizations, and other stakeholders or parties. Education along with rebates or other incentives may be essential to motivate residential and small and medium business customers to install and utilize automated technologies to optimize electricity usage (or dispatch from behind-the-meter generation and storage systems) based on hourly or sub-hourly price signals.
CPA’s prior experience with opt-in programs, particularly novel and complex ones, suggests that customer acquisition costs per kWh of load shifted may be quite high in the early stages of program roll out. (1) Estimated and Potential Benefits
As the cost of electricity service can vary significantly by hour and season, marginal cost-based rates can provide strong price signals to customers and encourage beneficial load shift and economic optimization of electricity demand. The benefits of marginal cost-based rates include:
• Shifting electricity consumption from high market price hours to low market price hours, leading to reduced energy costs for all customers.
• Decreasing electricity usage during peak load demand periods, thereby lessening the requirement for additional generation capacity investments.
These financial benefits may accrue directly to marginal cost-based rate participants and may also result in a lower overall cost of generation service to the benefit of all customers. In addition to the potential financial benefit, the ability to shift electricity demand may also contribute to lower overall greenhouse gas emissions and enhanced air quality.
(2) Rate Design Effectiveness and the Realization of Benefits Effective rate design is critical for the delivery of benefits related to marginal cost-based rates.
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10 Ensuring that marginal cost-based rates both incentivize beneficial load shifting and appropriately reflect the impact to CPA’s cost of service will require insight into the level of customer rate and technology adoption, demand profiles, and price sensitivity. Implementing marginal cost-based rates in the absence of such understanding could lead to ineffective rate design and adverse financial consequences for both participating and non-participating customers.
Cost-effective rate design, customer engagement, and implementation will require additional research, customer feedback, and insight into the following:
Available Technology
Dynamic and highly variable marginal cost-based rates are likely to be most effective when paired with customer technology capable of processing price signals on an hourly or sub-hourly basis and reacting with an automated load response, such as smart thermostats, smart appliances, and electric vehicle supply equipment. In the absence of enabling technology, customers are less likely to respond to these price signals, limiting the benefits of marginal cost-based rates and potentially resulting in higher customer bills.
CPA currently provides load management programs that utilize customer technologies for event-based demand response. However, more information is needed regarding the types of devices utilized among CPA customers and within customer classes, and whether they can process and respond to hourly or sub-hourly price signals.
Customer Adoption
The number of customers interested in participating in marginal cost-based rates is required to evaluate the resulting load response and potential cost reduction. A sufficient level of adoption is needed to ensure that set-up and ongoing costs of implementation are recovered, and that marginal cost-based rates do not adversely impact non-participating customers.
Customer Experience
CPA’s current and planned load management programs are based on demand response events, which occur during times of higher than seasonally projected energy demand. Participating customers may also opt out of demand response events. Marginal cost-based rates will differ from these traditional demand response programs as customers will be provided price signals on an hourly or sub-hourly basis, where more frequent load management decisions may be necessary to lower monthly energy bills. If customers do not have a sufficient understanding of the change from TOU rates to marginal-cost based rates or are unable to modify their electricity demand in response, there is potential for significantly increased customer bills, negative customer experience, and customer opt-outs.
Customer Price Elasticity
Price elasticity refers to the responsiveness of electricity demand in response to changes in price.
Determination of the price elasticity of each customer class will be required to estimate the expected load response and potential cost reduction from the implementation of marginal cost-based rates. While some understanding of customer load shift capability can be obtained from existing load management programs, these programs are limited to demand response events and do not provide insight into the effect of hourly or sub-hourly price signals on customer demand.
Investor-owned Utility Marginal Cost-Based Delivery Rates
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11 As mentioned previously, CPA is a CCA providing generation service to participating communities within the service territory of SCE. CPA customers’ delivery service provider is SCE, which may also offer marginal cost-based rates for delivery. Information regarding the alignment of CPA marginal cost-based generation rates and rate structure with SCEs marginal cost-based delivery rates and rate structure will be necessary to determine the total price signal that is provided to customers as well as the ability of customers and ASPs to integrate and comprehend those signals, which may ultimately impact the expected customer adoption, load response, and potential cost reduction from marginal cost-based rates. (a) Discussion
While marginal cost-based rates hold the potential for enhanced benefits compared to TOU rates and load management programs, CPA does not currently have sufficient information to quantify these benefits or CPA’s ability to realize them. Factors such as available technology, customer adoption and experience, price elasticity, and the alignment with marginal cost-based delivery rates contribute to this uncertainty. The development of marginal cost-based rates is likely to incur substantial setup and ongoing costs. Without an informed rate design and implementation process, the development could result in additional costs borne by customers. Nonetheless, CPA does recognize the potential benefits of marginal cost-based rates and will continue gathering data to support an informed consideration of future marginal cost-based rate offerings by the CPA Board.
b) Equity Evaluation
CPA does not currently have sufficient information to make a quantitative assessment of the potential impact of marginal cost-based rates across various customer classes and segments. The following is a qualitative discussion of the equity considerations for marginal cost-based rates. i) Equitable Access to Direct Benefits
Direct benefit from marginal cost-based rates is derived from the ability of customers to receive and respond to marginal cost-based rates. The following criteria contribute to a customer’s ability to respond to marginal cost-based rates.
ii) Load Flexibility
The degree to which customers can adjust their electricity consumption will significantly influence their capacity to adapt to marginal cost-based rates. Residential customers who spend considerable time at home may possess greater flexibility in modifying their electricity usage compared to those who spend less time at home. Similarly, commercial clients who can freely adjust the timing of their daily activities stand to achieve more significant savings on their bills compared to commercial customers with less flexible operations.
iii) Enabling Technology
Access to enabling customer technology is a critical pathway for customers to directly benefit from marginal cost-based rates. The upfront cost of enabling technology is a barrier to accessing these benefits and may disadvantage low-income customers and communities. For commercial customers, industry-specific technologies may result in different levels of accessibility between customers and within the same customer class.
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12 iv) Educational Tools
A sufficient understanding of the structure of marginal cost-based rates, and the potential impact on energy costs, is critical to maintain a positive customer experience. Access to educational materials and tools will be essential for customers to make an informed decision about the adoption of marginal cost-based rates and how to manage their monthly electricity demand based on hourly or sub-hourly rates.
Customer education may be necessary because marginal cost-based rates that are based on prevailing market energy costs will be subject to hourly or sub-hourly market volatility, where locational marginal price fluctuations may result in more substantial price swings than customers experience under TOU rates. v) Equitable Access to Indirect Benefits
Marginal cost-based rates can lower costs related to generation capacity and market energy purchases, which may provide indirect benefits to non-participating customers. In addition, beneficial load shift has the potential to lower greenhouse gas emissions and enhance air quality. As discussed, more information is required for effective rate design and implementation that would result in indirect financial benefits to all customers, as well as which customers and locations may be impacted by changes in greenhouse gas emissions and air quality.
(1) Discussion
(a) Evaluation Conclusion
At this time CPA is unable to conclude that the implementation of marginal cost-based rates would result in equitable direct and indirect benefits to CPA customers. Additional information on available technology, customer adoption and experience, price elasticity, and the alignment with marginal cost-based delivery rates is required to determine the magnitude of the associated benefits that would be attributed to various customer segments and classes.
c) Technological Feasibility Evaluation
i) CPA’s Current Technology Systems
Meters
The majority of CPA customers have smart meters capable of hourly or 15-minute interval reads, a requirement for implementation of marginal cost-based rates. Customers that do not currently have a smart meter will require a meter upgrade to enable participation. Sub-hourly marginal-cost based rates will require additional investment in smart meters and IT infrastructure to enable participation for most CPA customers as approximately 32% of CPA smart meters can provide 15-minute interval reads.
Access to Real-Time (Dynamic) Hourly Rates
CPA does not currently have the internal capability to develop, maintain, and provide customers and ASPs with access to hourly or sub-hourly dynamic rates. Although CPA’s time-dependent rates are now available through MIDAS, it is not clear what additional internal or external system capabilities will be required to enable uploading and access to rates that change on a day-ahead or real time basis and integration of dynamic generation and delivery rates. CPA will need to either build these capabilities internally or contract with a third-party to develop and maintain rates which integrate with available customer, ASP, and/or statewide tools and technologies (e.g., a statewide pricing machine).
Billing System
CPA’s billing system is not currently equipped to ingest and bill customers based on hourly or sub-hourly rates. The cost and time that will be required by CPA’s billing and data administrator to develop, test, and
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13 implement this capability is currently unknown but is likely substantial. Also unknown at this time are 1) the technical feasibility of processing the significantly higher volume of data within SCE’s current four-day window for turning around bill charges; and 2) the ability to provide bill presentment for unbundled customers that is consistent with bundled customer experience given current limits established by SCE on the quantity and quality of information CPA is able to incorporate into customer bills. Changes in either of these areas may require significant system investments both by CPA and by SCE.
Enrollment
While CPA maintains distinct rates (prices), CPA rate structures mirror those of SCE. For a permanent marginal cost-based rate offering, participating CPA customers would also need to enroll in a marginal cost-based rate with SCE for delivery services.
Customer Educational Tools and Controls
CPA currently works with a vendor to enroll and manage participation of customers in event-based demand response programs that involve automated load shifting (see Chapter 4 for more information).
The programs and technologies in use do not currently provide the capability to ingest and respond to hourly or sub-hourly price signals in real time.
ii) Information Technology Roadmap
CPA’s technology roadmap will be developed in conjunction with developing and implementing one or more marginal cost-based rate pilots as detailed in Chapter 3, Section 5 of this Revised Plan. iii) Enabling Customer Technology
Customers will need smart devices (e.g., smart thermostats, battery energy storage systems, electric vehicle charges, energy management systems, other applicable devices, etc.) that can access hourly or sub-hourly rates and automatically shift load in response to those price signals. Penetration of such technologies is currently limited, especially among residential, small business, and low-income customers.
(1) Discussion
(a) Evaluation Conclusion
CPA and its billing and data administrator currently lack the capability to implement hourly or sub-hourly marginal cost-based rates. CPA anticipates that participating in one or more dynamic rate pilots, as detailed in Chapter 3, Section 5 of this Revised Plan, will provide CPA with data and insights that will help inform the specifications and budget for future internal technology investments and/or vendor agreements.
d) Benefits to Customers
i) Avoided Capacity Needs
Generation providers providing service within the California Independent System Operation (“CAISO”) electricity market must procure sufficient generation capacity to meet peak customer demand and demonstrate resource adequacy. Demand reduction during peak periods can both enhance grid reliability and reduce the need for investments in new generation capacity, which can indirectly benefit all CPA customers.
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14 ii) Avoided Energy Purchase Costs
As a generation service provider, CPA purchases electricity through its long-term and short-term Power Purchase Agreements (“PPAs”), and from the CAISO on behalf of its customers. The ability of marginal cost-based rates to send price signals that shift electricity demand away from higher price hours and towards lower price hours can directly lower energy costs for participating customers, and indirectly benefit all CPA customers.
iii) Avoided GHG Emissions & Environmental Benefits
GHG emissions, primarily carbon dioxide and methane, trap heat in the Earth's atmosphere, contributing to global warming and leading to adverse effects such as more frequent and severe heatwaves and rising sea levels. Thermal generation can also adversely impact air quality in nearby communities.
CPA was recently ranked the number one green power provider in the United States15 and is committed to the reduction of GHG emissions from electricity generation. CPA does not own nor contract with any thermal generation suppliers and therefore does not incur any regulatory costs related to GHG emissions.
However, the potential of marginal cost-based rates to shift electricity demand away from peak periods with higher thermal generation and towards hours with a greater proportion of renewable generation is aligned with CPA’s core objectives and benefits all customers. iv) Customer Bill Impacts
Marginal cost-based rates provide customers with the opportunity to respond to hourly or sub-hourly price signals that lower their energy cost compared with their otherwise applicable electricity rate.
However, even for customers with enabling customer technology, access to educational tools, and load flexibility, there is a risk of increased customer bills. Additionally, an informed and effective rate design will be required to ensure that the implementation of marginal cost-based rates does not result in additional costs borne by non-participating customers.
v) Customer Experience
Marginal cost-based rates change on an hourly or sub-hourly basis, reflecting changes to underlying energy market dynamics are likely to vary to a much greater degree than current TOU rates.
Significant customer education will be required to ensure that customers both understand the structure of marginal cost-based rates and obtain the necessary tools and information to make informed decisions about their electricity usage.
(1) Discussion
(a) Evaluation Conclusion
At this time CPA is unable to conclude that the potential benefits associated with marginal cost-based rates would be realized or quantify the magnitude of those benefits. Additional information on available technology, customer adoption and experience, price elasticity and the alignment with marginal cost-based delivery rates is required for effective rate design that results in the benefits discussed. Chapter 3, Section 5 below outlines CPA’s compliance approach after concluding that additional information is needed to adopt marginal cost-based rates at this time. 15 National Renewable Energy Laboratory, 2022 Utility Green Pricing Programs Rankings, https://www.nrel.gov/analysis/green-power.html
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15 5) CPA’s Compliance Approach: Participating in the SCE Pilot to Obtain Data for Further Cost-Benefit Analysis for Implementing Cost-Based Rates CPA’s participation in the SCE Pilot will satisfy the LMS Regulations and provide CPA with data to more effectively evaluate adoption of marginal cost-based rates. Section 1623.1(a)(1) of the LMS Regulations requires Large CCAs such as CPA to submit a compliance plan that details how Large CCAs must meet certain LMS goals. As described in Chapter 1, Section 2(b) of this Revised Plan, a Large CCA that does not plan to proposed development of marginal cost-based rates may satisfy the Section 1623.1(a)(1) requirement by proposing “programs that enable automated response to marginal cost signal(s) for each customer class and evaluate them based on their cost-effectiveness, equity, technological feasibility, benefits to the grid, and benefits to customers.”16 CPA’s participation in the SCE Pilot satisfies the LMS requirements Section 1623.1(a)(1)(B) because the SCE Pilot is a program that will enable automated response to marginal cost signals and participation in the SCE Pilot will be evaluated by CPA.
Furthermore, Section 1623.1(b)(2) requires Large CCAs such as CPA to apply to its rate-approving body for approval of at least one marginal cost-based rate for any customer class(es).17 CPA satisfied this requirement by presenting to CPA’s Board a marginal cost-based rate in connection with the CPA’s Board’s approval of CPA’s participation in the SCE Pilot.
CPA recognizes the potential of marginal cost-based rates to result in beneficial load shift that benefits both participating and non-participating customers and will continue to gather data to better inform consideration by CPA’s Board of future implementation. a) CPA Will Participate in the SCE Pilot
i) SCE Pilot
Beginning in 2023, SCE implemented a dynamic rate pilot for select customers18 and in June of 202419 the SCE Pilot was to be available for one CCA in its service area20. The SCE Pilot includes both a subscription rate component, based on average customer hourly usage, and an hourly dynamic rate that is billed to incremental usage credited to a reduction in usage and an hourly dynamic rate that is billed to incremental usage or credited to a reduction in usage. CPA has engaged in discussions with SCE on its SCE Pilot since the first quarter of 2024. CPA participation in the SCE Pilot was brought to CPA’s Board for approval on July 10, 2025. This satisfied section 1623.1(a)(1) and Section 1623.1(b)(2) of the LMS Regulations. Given CPA’s Board approval of this Revised Plan, CPA will file a Tier 1 Advice Letter to participate in the SCE Pilot. After the Advice Letter is approved by the CPUC, it is currently estimated that the earliest SCE can begin enrollment of CCA customers in the SCE Pilot is November 2025.21 The SCE Pilot will conclude on December 31, 2027. All customer classes will be eligible to participate in the 16 Section 1623.1(a)(1)(B) 17 Section 1623.1(b)(2) 18 Decision 21-12-015, Phase 2 Decision Directing Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company To Take Actions To Prepare For Potential Extreme Weather in the Sumers of 2022 and 2023
19 There is a current delay in the implementation of the SCE dynamic rate pilot. The expected time that unbundled customers participation will begin is November 2025.
20 D.24-01-032, Decision to Expand System Reliability Pilots of Pacific Gas and Electric Company and Southern California Edison Company at p.40
21 Given current implementation delays in the SCE Pilot, pumping and agriculture customers may not be able to enroll in the SCE Pilot until December of 2025.
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16 SCE Pilot. CPA will cap enrollment of CPA customers in the SCE Pilot at 15% of SCE’s Pilot enrollment target of 50 megawatts (i.e., 7.5 megawatts), proportional to CPA’s load share ratio within Southern California Edison’s (SCE) territory. The SCE Pilot rate, designed by SCE, is a marginal cost-based rate. ii) CPA Permanent Marginal Cost-Based Rate
CPA’s participation in the SCE Pilot will provide CPA with additional information and insights into the impact of marginal-cost based rates on customer behavior and CPA’s cost or service, which may enable CPA staff to conduct a more robust cost-benefit analysis on the efficacy of marginal-cost based rates.
Chapter 4 Load Flexibility Programs
1) Load Flexibility Programs
a) LMS Regulation Overview
The LMS Regulations state that if an entity finds that adopting marginal cost-based rates on at least an hourly basis is not cost-effective, equitable, technologically feasible, and does not deliver benefits to the grid and to customers for each customer class,22 then a large CCA can propose programs that enable automated response to marginal cost signal(s) for each customer class and evaluate them based on their cost-effectiveness, equity, technological feasibility, benefits to the grid, and benefits to customers.23 Section 1623.1(b)(3) describes that no later than 18 months after April 1, 2023, or by October 1, 2024, each CCA shall submit to the CEC Executive Director a list of load flexibility programs deemed cost-effective by the CCA.24 This section further states that the portfolio of identified programs must provide at least one option for automating response to MIDAS signals for each customer class that the rate-approving body determines such a program will materially reduce peak load.25 Section 1623.1(b)(4) describes that within 51 months of April 1, 2023, or by July 1, 2027, each CCA shall offer to each of its electricity customers voluntary participation in either a marginal cost-based rate, if such rate is approved by the CCA’s rate-approving body, or a cost-effective program identified according to Section 1623.1(b)(3).26
As described in Chapter 3 of this Revised Plan, CPA will participate in the SCE Pilot to satisfy the compliance obligations in the LMS Regulations. Depending on the results and cost-benefit analysis of CPA’s participation in the SCE Pilot, CPA may or may not elect to use its load flexibility programs to fulfill the LMS Regulations.
b) Overview of CPA’s Current Load Flexibility Programs
The implementation of customer programs that support grid reliability is a priority for CPA. CPA has implemented demand response programs to support the conservation of energy during times of high 22 Section 1623.1(a)(1)(A) 23 Section 1623.1(a)(1)(B) 24 Section 1623.1(b)(3) 25 Section 1623.1(b)(3)(A) 26 Section 1623.1(b)(3)
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17 demand on the grid. Robust demand response programs help contribute to grid resiliency and reliability, provide incentives and savings to customers, lower CPA’s procurement costs, and shift customer usage to less GHG intensive times of day. Furthermore, demand response provides an opportunity for customers to play a role in the operation of the electric grid by reducing their electricity usage during peak demand days when wholesale prices are highest in exchange for financial incentives.
Demand response is also an important tool that realizes the objectives identified in the Resiliency and Grid Management category of the CPA Local Programs for a Clean Energy Future plan. 27 This Local
Programs plan is the strategic vision for our customer programs and was adopted by CPA’s Board in June 2020, then refreshed in 202328. The Local Programs plan details the programs and services to be implemented, all of which are intended to result in community investment and to support our customers in co-managing their relationship with the energy system. CPA’s programs are designed to bring local benefits to member communities, such as customer cost savings, economic and workforce development, improved air quality and public health, and more resilient communities.
Load flexibility in our service territory is of notable importance and CPA is accounting for new programs to prepare for the future needs in grid management. While our current offerings are event-based demand response, we are reviewing opportunities to support overall daily load management through pricing signals. As the grid conditions continue to change, it is becoming even more important to educate our customers on how to manage their energy usage in a way that is best for them, the grid, and the environment. In the near term, CPA is planning to pilot two new programs: the first which will support residential customers with TOU rate pricing indicators through smart light switches, and the second which will implement managed charging to shift EV charging load from peak times. c) List of CPA’s Current and Planned Program Offerings That Support Load Flexibility Current Residential Programs
CPA considers “Current” programs to be those programs that are currently offered to its customers at the time that the CPA Plan is submitted. While CPA proposes to proceed with the SCE Pilot to meet the LMS requirements, this Revised Plan also includes a list of programs that support load flexibility beyond the SCE Pilot.
Power Response Smart Home
Power Response Smart Home is a demand response program where residents with eligible smart devices receive financial incentives for saving energy during times of high demand. The program is intended to encourage residential homeowners to reduce energy usage during times of higher than seasonally projected energy demand. Eligible devices include ecobee thermostats, Nest thermostats, Sensi thermostats, ChargePoint EV chargers, Wallbox EV chargers, and SolarEdge home battery systems. Customers receive an incentive for enrolling and annual incentives for continued participation. Incentives vary by device enrolled. Working with AutoGrid as the program implementer, CPA automatically manages devices during events to reduce load. 27 CPA Local Programs for Clean Energy Future plan, https://d2hgu8srlfn9ex.cloudfront.net/uploads/2020/06/Local-Programs-for-a-Cleaner-Future-Report.pdf 28 Local Programs for a Clean Energy Future Action Plan, 2023, https://files.cleanpoweralliance.org/uploads/2023/07/CPALocalProgramsMidCycleRefreshActionPlan_062923.pdf
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18 • Types of Hourly MIDAS Signals: None, this program uses hourly day-ahead CAISO pricing signals.
• Target End-Uses/Customers: Residential customers with smart connected devices. • Equipment requirements: Smart connected devices, which currently includes smart thermostats, EV chargers, and home batteries.
• Participating 3rd party Automation Service Providers: Google Nest, ecobee, Emerson Sensi, ChargePoint, Wallbox, and SolarEdge.
• Control Algorithms: Energy Saving Events are called based on day-ahead market pricing triggers. AutoGrid is the program implementer for Power Response. AutoGrid sends dispatch signals to the Original Equipment Manufacturers (“OEMs”) via AutoGrid Flex Distributed Energy Resource Management System (“DERMS”) platform. The OEM communicates to the smart devices to adjust for reduced load or battery discharge. • Enrollment Projections: Current enrollment as of 2/5/2024 for the program is 1,488 households and 1,761 devices, with a forecast of 3,000 devices enrolled by the end of the 2024 calendar year.
• Load Impact Projections: Approximately 1.7 MW of dispatchable capacity is currently enrolled, with a forecast of 2.8 MW by the end of the 2024 calendar year.
Power Response Home
Power Response Home is a demand response program open to all of CPA’s residential customers. The program is intended to encourage residential homeowners to manually reduce energy usage during times of higher than seasonally projected energy demand. Suggestions to reduce energy use during events include thermostat adjustments, turning off lights, delaying running of appliances, and/or unplugging appliances not in use. Participants receive $2/kWh reduced per event as an incentive. An enrollment incentive of $20 is also offered to eligible income-qualified customers on CARE/FERA rates and customers with a service address in a disadvantaged community.
• Types of Hourly MIDAS Signals: None, this program uses hourly day-ahead CAISO pricing signals.
• Target End-Uses/Customers: Residential customers.
• Equipment Requirements: No equipment is needed to participate. • Participating 3rd Party Automation Service Providers: Not applicable. • Control Algorithms: Energy Saving Events are called based on day-ahead market pricing triggers. AutoGrid is the program implementer for Power Response. AutoGrid sends notifications directly to behavioral demand response customers via AutoGrid Flex DERMS platform. Behavioral demand response customers then manually adjust their home system to reduce energy use.
• Enrollment Projections: Current enrollment for the program is 1,150 homes, with a forecast of 3,000 homes enrolled by the end of the 2024 calendar year. • Load Impact Projections: Approximately .35 MW of dispatchable capacity is currently enrolled, with a forecast of .9 MW by the end of the 2024 calendar year.
Power Response Multifamily Community
The Power Response Multifamily Community Program offers an incentivized energy-saving opportunity for multifamily buildings meeting affordable housing eligibility requirements.
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19 The program provides smart connected thermostats and financial incentives to building owners and residents for enrolling and participating in demand response events. Working with AutoGrid as the program implementer, CPA automatically manages devices during events to reduce load. • Types of Hourly MIDAS Signals: None, this program uses hourly day-ahead CAISO pricing signals.
• Target End-Uses/Customers: Affordable multifamily communities and their residents. • Equipment Requirements: Smart connected thermostats, which are provided by CPA and installed by building management.
• Participating 3rd Party Automation Service Providers: Emerson Sensi. • Control Algorithms: Energy Saving Events are called based on day-ahead market pricing triggers. AutoGrid is the program implementer for Power Response. AutoGrid sends dispatch signals to OEMs via AutoGrid Flex DERMS platform. The OEM communicates to the smart devices to adjust for reduced load.
• Enrollment Projections: A forecast of 300 multifamily units to be enrolled by the end of the 2024 calendar year.
• Load Impact Projections: A forecast of 0.3 MW by the end of the 2024 calendar year.
Current Commercial Programs
Power Response Commercial Leaders
The Power Response Commercial Leaders Program incentivizes business and public sector customers for participating in demand response events and reducing their energy use during times of high demand. Participants receive up to $80/kW each year for power reduced during Commercial Energy Saving Events. CPA works directly with interested businesses to create a custom plan to identify a customer plan. This may include manual adjustments to their systems or through smart devices that can be connected to and adjusted automatically. • Types of Hourly MIDAS Signals: None, this program uses hourly day-ahead CAISO pricing signals.
• Target End-Uses/Customers: CPA customers on a business rate, including commercial and public agency customers.
• Equipment Requirements: Equipment is not required, but compatible smart devices and energy management systems may be used if available.
• Participating 3rd party Automation Service Providers: Any compatible connected device or energy management system supported by our program implementer, AutoGrid. • Control Algorithms: Commercial Energy Saving Events are called based on day-ahead market pricing triggers. AutoGrid is the program implementer for Power Response. AutoGrid sends dispatch signals to the OEMs when applicable and notifications directly to sites that are manually adjusting their load via AutoGrid Flex DERMS platform. The OEM communicates to the smart devices to adjust for reduced load, as applicable. • Enrollment Projections: Current enrollment for the program is 1 public agency building, with a forecast of 10-15 buildings enrolled by the end of the 2024 calendar year. • Load Impact Projections: Approximately 11 kW of dispatchable capacity is currently enrolled, with a forecast of 150 kW by the end of the 2024 calendar year.
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20 Peak Management Pricing
Peak Management Pricing is a demand response program that encourages eligible commercial and municipal customers to voluntarily take action to power down appliances, electronics, air conditioning, or other equipment during peak heat days and get summer bill credits in return. Participants receive summer bill credits in exchange for the application of a surcharge on energy consumed during demand response events to encourage curtailment during peak demand days.
• Types of Hourly MIDAS Signals: None, this program uses hourly day-ahead CAISO pricing signals.
• Target End-Uses/Customers: Commercial customers on one of the following rates: TOU-GS-1-E, TOU-GS-2-D, TOU-GS-3-D, TOU-8-D, TOU-PA-2-D, or TOU-PA-3-D. • Equipment Requirements: No equipment is needed to participate. • Participating 3rd Party Automation Service Providers: Not applicable. • Control Algorithms: Events are called by CPA based on hourly day-ahead market pricing triggers.
• Enrollment Projections: Current enrollment for the program is 1 commercial business. • Load Impact Projections: Due to limited enrollment, a forecast is unknown at this time.
Planned Residential Programs
CPA considers “Planned” programs to be those programs that have an established schedule for implementation.
Smart Light Switches
CPA will be launching a pilot in April 2024 with the goal of providing customers with time-based price signals through a color-coded display in the residential units of eligible multifamily communities. Smart light switches are to be offered to multifamily buildings meeting an affordable housing eligibility requirement. The smart light switch plates installed will have embedded color-coded technology that encourages end-users to reduce their bills and carbon emissions when energy on the grid is most expensive, and/or carbon intensive. Signals will be created based on CPA’s time-based electric rate signals and sent to an easy-to-understand informational display. Participating customers will be able to make educated decisions based on these pricing signals that directly impact their energy bill. • Types of Hourly MIDAS Signals: None, this program intends to use time of day pricing signals based on CPA’s rates.
• Target End-Uses/Customers: Affordable multifamily housing residents. • Equipment Requirements: Smart light switches with color-coded signal technology. • Participating 3rd Party Automation Service Providers: Flick Power. • Control Algorithms: Price-based signals will be dispatched daily to all participating residents with a smart light switch. Price signals will be based on CPA’s TOU rates. • Enrollment Projections: 300 multifamily units during the pilot phase in 2024. • Load Impact Projections: As this is a 1-year pilot project, CPA intends to review the data compiled for this first year to review the load impact achieved by issuing price-based signals to residential customers.
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21 Planned Commercial Programs
Additional commercial programs are in the early stages of research and CPA will update the CPA Plan, as appropriate.
2) Evaluation of Programs
As detailed above, CPA has a load flexibility program portfolio offering participation pathways to all CPA customers. The current demand response programs are event-based and use hourly day-ahead price signals from the CAISO to dispatch our programs on high-demand and high-cost days. CPA is also evaluating daily load management programs for grid flexibility, using hourly day-ahead price forecasts and price signals based on CPA’s TOU rates to support daily grid demands. The quantitative benefits of adding a MIDAS signal to CPA’s programs are unknown at this time. CPA is evaluating opportunities to implement daily load management strategies through price signals and will be better equipped to assess the benefits and cost effectiveness of incorporating MIDAS following such pilots. In October 2024, CPA submitted to the CEC a list of load flexibility programs deemed cost-effective by CPA. i) Cost Effectiveness
CPA cannot conclude that the development of new programs that allow for automated responses to marginal cost-based rates would be cost-effective at this time. ii) Equity
CPA cannot conclude that the development of new programs that allow for automated responses to marginal cost-based rates would materially address equity at this time. iii) Technological Feasibility
CPA at this time cannot assess the technological feasibility of incorporating MIDAS signals into our programs following the results of our pilot programs that are testing daily load shifting impacts.
iv) Benefits to the Grid and Customers
CPA at this time cannot assess the expected incremental costs and benefits associated with incorporating more dynamic price signals and/or allowing resources to be dispatched by MIDAS signals.
Chapter 5: Public Information Program
1) Public Information Program
a) Introduction to LMS Regulations in Providing Public Information Campaign Section 1623.1(a)(5) requires CCAs to conduct a public information campaign to inform and educate the affected customers why marginal cost-based rates or customer programs and automation are
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22 needed, how they will be used, and how they will save a customer money.29 Chapter 5 describes how CPA will comply with conducting a public informational campaign to inform and educate customers. b) CPA’s Current Communications Approach
CPA’s current communications strategy when phasing in new rate structures and/or customer programs include several approaches. These approaches include targeting customers already enrolled in CPA customer programs, targeted email and mailers, social media presence and awareness, informational webpages, fact sheets and explainer videos, providing CPA’s member agencies with educational toolkits and outreach to local business chambers. CPA also supports the phasing in of new rates structures and customer programs with a call center to assist with customer inquiries. c) CPA’s Current Outreach and Marketing
As mentioned above CPA utilizes several approaches to communicate new rate structures and/or customer programs. These approaches serve bilaterally to outreach and market new rates or customer programs. In addition, CPA has coordinated and leveraged past statewide educational campaigns, such as the rollout of TOU rates to outreach and market to customers. If such an option is available during the rollout of load flexibility standards, CPA will leverage the existing statewide educational campaigns. d) Plan for Conducting Public Information Program
In implementing the SCE Pilot, CPA will utilize SCE’s ME&O strategies that are funded through the SCE Pilot’s administrative costs, as approved in CPUC’s D.24-01-032. In addition, CPA will incorporate information about the SCE Pilot on its website and in relevant customer program materials, including details that educate customers on the benefits of marginal cost-based rates and customer programs, how they work, and how they can save the customer money. i) Public Information Program
In implementing the SCE Pilot, CPA will utilize SCE’s ME&O strategies that are funded through the SCE Pilot’s administrative costs, as approved in CPUC’s D.24-01-032. In addition, CPA will incorporate information about the SCE Pilot on its website and in relevant customer program materials, including details that educate customers on the benefits of marginal cost-based rates and customer programs, how they work, and how they can save the customer money. ii) Resource Commitment Plan to Design and Implement the Public Information Programs
29 Section 1623.1(a)(5)
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23 CPA will leverage SCE’s approved budget in the SCE Pilot to disseminate necessary information for SCE Pilot participation and enrollment.
Chapter 6: Summary of CPA’s Compliance Plan Approach
Below is a summary of the Revised Plan approach, which was approved by CPA’s Board on July 10, 2025, to meet the LMS Regulations.
1) CPA does not recommend adopting marginal cost-based rates at this time. CPA’s Board instead authorizes CPA to participate in the SCE Pilot until December 31, 2027 to gain insights into cost and benefits of marginal cost-based rates. .
2) CPA submitted to the CEC a list of load flexibility programs deemed cost-effective by CPA on October 1, 2024.
3) CPA will submit annual reports to the CEC demonstrating implementation of plan as required by Section 1623.1(a)(3)(C), as approved by CPA’s Board.
4) CPA’s participation in the SCE Pilot satisfies the requirement to submit at least one marginal cost-based rate to the Board of CPA for approval for any customer class(es) where such rate will materially reduce peak load as required by Section 1623.1(b)(2). 5) CPA will review the plan at least once every three years after the plan is adopted and submit a plan update to the Board of CPA if there is a material change as required by Section 1623.1(a)(1)(C).
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24 Appendix 1
Attachment: CPA’s Existing Rates Uploaded to MIDAS as of February 13, 2024. https://files.cleanpoweralliance.org/uploads/2024/02/CPA-Midas-Rates_2017-2018-vintage.pdf
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25 Appendix 2
Attachment: PDF file for CPA's rates in MIDAS.
https://files.cleanpoweralliance.org/uploads/2024/02/CPA_validation_20240111.pdf
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Staff Report – Agenda Item 4
To: Board of Directors
From: Karen Schmidt, Senior Director, Rates & Strategy
Reviewed By: Matt Langer, Chief Operating Officer
Nancy Whang, General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Net Energy Metering and Net Billing Tariff Amendments Date: February 5, 2026
RECOMMENDATION
Adopt Resolution No. 26-02-101 Amending the Clean Power Alliance Net Energy Metering Tariff and Net Billing Tariff effective February 5, 2026.
BACKGROUND
On February 7, 2019, the Board of Directors of CPA (“Board”) adopted a policy for CPA’s Net Energy Metering (“NEM”) program, which was subsequently amended and adopted by the Board on March 7, 2019, October 3, 2019, May 1, 2021,1 April 6, 2023, July 6, 2023, and December 7, 2023 (“CPA NEM Tariff”).
On July 6, 2023, the Board adopted a CPA Net Billing Tariff (“CPA NBT Tariff”) following the California Public Utilities Commission’s NEM 3.0 Decision. CPA NBT Tariff was subsequently amended and adopted by the Board on December 7, 2023 to maintain operational alignment with Southern California Edison’s Net Billing Tariff (“SCE NBT Tariff”).
1 On May 1, 2021, the policy was re-named as the NEM Tariff.
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Board of Directors Item 4
In 2025, SCE published a separate Virtual NBT Tariff (“NBT-V Tariff”) mirroring its existing Virtual NEM Tariff, aimed at enabling multi-tenant and multi-meter properties to access the benefits of participation in the NBT program. As with other SCE NEM and NBT tariffs, the NBT-V Tariff is open to community choice aggregator (“CCA”) customers provided that the CCA offers a tariff or program consistent with the provisions of SCE’s NEM or NBT tariffs.
DISCUSSION
Staff’s proposed amendments to the CPA NBT Tariff specify that customers served under SCE’s NBT-V Tariff, applicable to multi-tenant and multi-meter properties who have installed on-site solar, are eligible to participate in CPA’s NBT Tariff. This proposal aligns with existing CPA practice to make administrative changes to align the Tariff with CPA operational processes. The proposed amendments also include administrative updates and clean-up provisions that are expected to have limited direct impact on customers.
Clarifications and Updates
Staff’s proposed amendments to the CPA NEM Tariff and CPA NBT Tariff include the following administrative clarifications and updates:
1. The tariffs specify that customer requests to receive a mailed check rather than an on-bill credit for credit balances under $100 at the time of an account’s annual true-up (which occurs in April of each year) must be received on or before March 15, and that such requests received on or after March 15 will be effective in the following relevant period. This requirement avoids the need for reissuing bills if credits from the annual true-up have already been calculated and applied by CPA.
2. References in the tariffs to documents and resources available online have been updated to reflect changes to the relevant URL addresses.
3. Outdated references to pre-2021 NEM true-up processes have been removed.
4. The Reservation of Rights and Limitation of Liability provisions that were included in the CPA NBT Tariff have been added to the CPA NEM Tariff in order to align those two tariffs and to mitigate potential risk to CPA.
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Board of Directors Item 4
ATTACHMENTS
1. Resolution 26-02-101
2. CPA Net Billing Tariff (redline)
3. CPA Net Energy Metering Tariff (redline)
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RESO NO. 26-02-101
February 5, 2026
RESOLUTION NO. 26-02-101
RESOLUTION OF THE BOARD OF DIRECTORS OF CLEAN
POWER ALLIANCE OF SOUTHERN CALIFORNIA
ADOPTING AND APPROVING AMENDMENTS TO NET
ENERGY METERING AND NET BILLING TARIFFS
THE BOARD OF DIRECTORS OF CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA DOES HEREBY FIND, RESOLVE, AND ORDER AS FOLLOWS:
WHEREAS, Clean Power Alliance of Southern California (formerly known as Los Angeles Community Choice Energy Authority) (“Clean Power Alliance” or “CPA”) was formed on June 27, 2017;
WHEREAS, on February 7, 2019, the Board of Directors of CPA (“Board”) first adopted a policy for CPA’s Net Energy Metering (“NEM”) program and this policy was subsequently amended and adopted by the Board on March 7, 2019, October 3, 2019, May 1, 2021,1 April 6, 2023, July 6, 2023, and December 7, 2023 (“CPA NEM Tariff”); WHEREAS, on December 15, 2022, the California Public Utilities Commission (CPUC) issued a decision reducing overall compensation for rooftop solar for new solar customers, increased the economic payback for battery storage, and provided added compensation for low-income customers (“NEM 3.0 Decision”); WHEREAS, on July 6, 2023, the Board of Directors of CPA (“Board”) adopted a CPA Net Billing Tariff (“CPA NBT Tariff”) in alignment with the NEM 3.0 Decision, which was subsequently amended and adopted by the Board on December 7, 2023, to maintain operational consistency with Southern California Edison’s Net Billing Tariff; WHEREAS, in 2025 Southern California Edison (“SCE”) published a Virtual Net Billing Tariff (NBT-V Tariff) to allow multi-tenant and multi-meter properties to participate in the NBT program; and
WHEREAS, CPA staff has amended the CPA NBT Tariff to specify that customers on SCE’s NBT-V Tariff are eligible to participate in CPA’s NBT Tariff and has amended the CPA NEM Tariff and the CPA NBT Tariff to make other administrative clarifications and updates and clean-up edits.
NOW, THEREFORE, BE IT DETERMINED, ORDERED, AND RESOLVED BY
THE BOARD OF DIRECTORS OF THE CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA that the Amendment to CPA’s Net Billing Tariff, attached hereto as Attachment A, and the Amendment to CPA’s Net Energy Metering Tariff, attached hereto as Attachment B, are hereby approved as of February 5, 2026; 1 On May 1, 2021, the policy was re-named as the NEM Tariff.
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RESO NO. 26-02-101
February 5, 2026
IT IS FURTHER DETERMINED, ORDERED, AND RESOLVED that any and all acts authorized pursuant to this Resolution and performed prior to the passage of this Resolution are hereby ratified and approved; and,
IT IS HEREBY FURTHER DETERMINED, ORDERED, AND RESOLVED that this Resolution shall take effect upon its passage, shall be continuing, and shall remain in full force and effect unless and until expressly revoked or revised by further resolution of the Board of Directors.
ADOPTED AND APPROVED this 5th day of February 2026.
____________________________
Deborah Klein Lopez, Chair
ATTEST:
_________________________
Gabriela Monzon, Secretary
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CPA Net Billing Tariff – Amended and Approved February 5, 2026Adopted July 6, 2023 - Effective September 1, 2023
Net Billing Tariff (NBT)
APPLICABILITY: Clean Power Alliance of Southern California’s (CPA) Net Billing Tariff (“CPA NBT Tariff”, also referred to as Solar Billing Plan (SBP) Tariff) shall be effective on September 1, 2023, and shall apply to (i) CPA customers served under Southern California Edison’s (SCE) Schedule NBT (Net Billing Tariff) or Schedule NBT-V (Virtual Net Billing Tariff) (“SCE NBT Schedules”), (ii) CPA customers who are eligible for NEM Tariff and elect to switch the CPA NBT Tariff, and (iii) CPA customers who are automatically transitioned to the SCE NBT Schedules following the termination of their 20-year SCE Net Energy Metering (NEM) legacy period.1 SCE rate schedules are available at: www.sce.com/regulatory/tariff-books/rates-pricing-choices/other-rates and may be amended or replaced by SCE from time to time. The CPA NBT Tariff may be amended from time to time or replaced by CPA’s Board of Directors (“Board”) at a duly-noticed public meeting of the Board.2
CPA customers served under CPA’s NBT Tariff must provide SCE with a completed SCE NBT or SCE NEM Application and comply with all other SCE requirements for enrollment in the SCE NBT Program3 before being eligible for the CPA NBT Program.
Eligible CPA customers who begin service under the an SCE NBT Schedule on or after September 1, 2023 are automatically enrolled in the CPA NBT Tariff either at the time of initially enrolling with CPA or at the time SCE begins serving them on the an SCE NBT Schedule. Eligible CPA customers who begin service under the SCE NEM or NBT Schedules prior to September 1, 2023, will be eligible for service under the CPA NEM Tariff (www.cleanpoweralliance.org/solar/) for 20 years following their SCE Original Permission to Operate Notice (PTO) Date.4 At CPA’s discretion, customers who began service under the an SCE NBT Schedule between September 1, 2023 and December 31, 2023 and can document that their NEM or NBT application was submitted to SCE prior to September 1, 2023, may be placed on the CPA NEM Tariff for 20 years following their Original PTO Date.
Customers served under the CPA NEM Tariff may elect to switch to the CPA NBT Tariff.
Customers who voluntarily switch to the CPA NBT Tariff or who are automatically transitioned to the CPA NBT Tariff following the termination of their NEM legacy period are not eligible to return to service under the CPA NEM Tariff.
NBT TRANSITION CUSTOMERS: Customers who begin service on the CPA NBT Tariff before CPA and SCE have fully implemented NBT billing systems will be initially served under the CPA NEM Tariff. These customers will be transferred to the CPA NBT Tariff at the end of their CPA NEM Tariff Relevant Period following full implementation of CPA and SCE NBT billing systems but no earlier than April 1, 2025.
1 See SCE Schedule NEM and Schedule NEM-ST at www.sce.com/regulatory/tariff-books/rates-pricing-choices/other-rates for details on SCE NEM legacy periods. 2 Board agendas are available at: https://cleanpoweralliance.org/get-involved/agendas-minutes/ 3 See www.sce.com/residential/generating-your-own-power/solar-billing-plan for more information. 4 CPA’s NEM Schedule is available at: https://cleanpoweralliance.org/wp-content/uploads/2023/05/NEM-Tariff-4-6-
23.pdf. Permission to Operate Notice (PTO) is SCE’s written approval authorizing a customer to commence operation of a qualifying renewable electrical generating facility or approving customer’s proposed modifications of the generating facility. The date that SCE provides the customer with the original PTO is referred to as the Original PTO Date. See SCE Schedule NBT for additional information.
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CPA Net Billing Tariff – Amended and Approved February 5, 2026Adopted July 6, 2023 - Effective September 1, 2023
RATES: All rates for the CPA NBT Tariff are in accordance with the customer’s otherwise applicable CPA rate schedule (CPA OAS). Nothing in this tariff will supersede any SCE authorized charges.
CHARGES, CREDITS AND BILLING: CPA’s charges and credits for energy (kilowatt-hours, or kWh) are calculated as described below.
a) Energy Charges:
As determined in each billing period, Energy Charges are calculated by multiplying the customer’s energy consumption (electricity imported from the grid, as recorded on the import channel of the customer’s SCE meter) in kWh by the applicable energy rate components ($/kWh) in the customer’s CPA OAS.
b) Energy Export Credits:
As determined in each billing period, Energy Export Credits are calculated by multiplying the hourly-differentiated customer’s energy export (electricity exported to the grid, as recorded on the export channel of the customer’s SCE meter) in kWh by the Generation component of the hourly Energy Export Credit Price (EEC Price) derived from the State-approved Avoided Cost Calculator (ACC) value for each hour of the billing period.5 Generation EEC Prices will be posted on CPA’s website.6 The calculated value of such net energy exports shall be credited to the customer and applied as described in Sections (c) and (d), below.
Energy Export Credits are calculated monthly and can be used to offset Energy Charges (as calculated above) incurred during the billing period but at no point can they offset demand charges, taxes, or other charges or fees within the Customer’s OAS, nor will they offset any SCE charges. Any unused Energy Export Credits can be used to offset Energy Charges within the customer’s Relevant Period as described in Section (d).
For customers with an Original PTO Date between April 15, 2023 and December 31, 2027, EEC Prices are fixed during the first 9 years (the “lock-in period”) beginning on the Original PTO Date so long as the SCE Interconnection Agreement remains valid and under the name of the original customer (or an “Eligible Same Party In” as defined in SCE’s Schedule NBT7). During the “lock-in period”, these customers will have the EEC Prices derived from the ACC adopted by the CPUC to be in effect as of January 1 of the calendar year of the customer’s Original PTO Date. Upon written request, CPA will permit these customers to opt out from the “lock-in period” described above. A new customer, other than an Eligible Same Party In, moving into a dwelling with an existing 5 The EEC Price is a $/kWh value which represents the estimated value of exports to the grid. Each year, the EEC Price is calculated using the California Public Utilities Commission (CPUC) Avoided Cost Calculator (ACC) approved to be effective as of January 1 of the calculation year (the “vintage year”). For each “vintage year”, the EEC Price is calculated for each month of a 9-year horizon period, and it is differentiated by hour (24 hours) and by weekdays and weekend/holidays. In addition, each hourly EEC Price is broken down in two components: (1) the Generation EEC Price (energy, cap and trade and generation capacity) component, and (2) the Delivery Service EEC Price (transmission, distribution, greenhouse adder and methane leakage) component. 6 www.cleanpoweralliance.org/solar/
7 For residential customers an Eligible Same Party In is a legal partner of the Service Account holder on record at the time of the Original POT Date. For non-residential customers, it is the account-holding entity that continues to be majority-controlled by the same underlying individuals or entities from the Original PTO Date.
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CPA Net Billing Tariff – Amended and Approved February 5, 2026Adopted July 6, 2023 - Effective September 1, 2023
generating facility served under SCE’s NBT Schedule will not be eligible to retain the EEC Prices associated with the Original PTO Date of the generating facility.
For customers with an Original PTO Date after December 31, 2027, customers that have elected to opt-out from the “lock-in period”, and customers that have exceeded their “lock-in period”, the EEC Prices change each year and are based on the EEC Prices derived from the CPUC ACC adopted by the CPUC to be in effect as of January 1 of the calendar year corresponding to the calculation month.
Residential customers eligible for an ACC Plus Adder as defined under the SCE NBT Schedule8 will receive the ACC Plus Adder from SCE on the delivery portion of their monthly bills. Enrollment or disenrollment in CPA service does not affect the value of the customer’s ACC Plus Adder credits.
c) Monthly Settlement of CPA Charges/Credits:
Each customer will receive a statement as part of their monthly SCE bill indicating accrued CPA Energy Charges for electric energy imported and/or CPA Energy Export Credits for energy exported during the current monthly billing cycle. When a customer’s CPA credits during the monthly billing cycle result in an accrued credit balance in excess of currently applicable CPA Energy Charges, the value of those credits shall be noted on the customer’s bill and carried over as a bill credit for use in a subsequent billing cycle(s).
A customer who has accrued credits during previous billing cycles will see such credits applied against currently applicable CPA Energy Charges, reducing otherwise applicable Energy Charges by an equivalent amount to such credits. Any remaining credits reflected on the customer’s billing statement shall be carried forward to subsequent billing cycle(s) until either (i) the excess credit is used to satisfy current Energy Charges, (ii) the customer no longer receives service from CPA, or (iii) an annual account true-up is performed. d) CPA Annual True-Up & Cash-Out Processes:
i) CPA Annual True-Up: During the April monthly billing cycle of each year, CPA will perform a true-up of the most recent twelve (12) monthly billing cycles (the “Relevant Period”) for all active customers with at least 12 months of participation in the CPA NBT Program. If as of April an active customer has less than 12 months of enrollment in the CPA NBT Tariff, their first Annual True-Up will take place during April of the following year and then every 12 months thereafter. A true-up can be issued after April if CPA is missing usage for a customer, or if SCE is processing billing corrections.
a. Net Surplus Energy Adjustment: Net Surplus Energy is defined as any generation that exceeds total customer energy usage during the Relevant Period, as measured in kWh. If the customer’s Net Surplus Energy at the end of the Relevant Period is greater than zero, CPA will calculate an Energy Export Credit Adjustment (in $) equal to the Net Surplus Energy (in kWh) 8 ACC Plus Adder is an additional credit for Export Energy to eligible CPA Customers. Qualified low-income customers are eligible for a higher ACC Plus Adder rate. For additional information, see SCE NBT Schedule, available at: https://www.sce.com/regulatory/tariff-books/rates-pricing-choices/other-rates.
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CPA Net Billing Tariff – Amended and Approved February 5, 2026Adopted July 6, 2023 - Effective September 1, 2023
multiplied by the then posted Average Retail Export Compensation Rate (in $/kWh). If the Net Surplus Energy is zero, then the Energy Export Credit Adjustment will be $0.
b. Energy Export Credit Refund: At the time of the Annual True-Up, if the customer has accumulated Energy Export Credits in excess of any currently outstanding Energy Charges, those credits will first be used to offset the Energy Export Credit Adjustment, if any. Any remaining Energy Export Credits will be refunded to the customer up to the total CPA Energy Charges paid by the customer on the same NBT account during the Relevant Period (“Refundable EEC”), consistent with CPA’s Annual Cash-Out practice in Section (d)(ii).9 Any unused Energy Export Credits shall not be carried forward to the start of a new Relevant Period; rather, the unused Energy Export Credits shall be zeroed out and a new Relevant Period will commence. c. Net Surplus Compensation (NSC): CPA will determine at the time of Annual True-Up whether each customer has produced Net Surplus Energy over the course of the Relevant Period. If a customer has produced Net Surplus Energy, then CPA shall credit such customer an amount not to exceed $10,000 that is equal to the current Net Surplus Compensation rate per kWh, as defined in CPA Net Surplus Compensation Rate Schedule, multiplied by the quantity of Net Surplus Energy produced by the customer during the Relevant Period, consistent with CPA’s Annual Cash-Out practice in (d)(ii) below. The CPA Net Surplus Compensation Rate Schedule is posted to CPA’s website and updated monthly. CPA Net Surplus Compensation Schedule can be viewed at www.cleanpoweralliance.org/nemsolar/.
d. NSC Renewable Attribute Adder (RAA): CPA will include a Renewable Attribute Adder (RAA) with the NSC rate if the eligible customer or their designee provides a completed and executed Form 14-935 verifying that the Customer has completed all of the following: (i) registered their generating facility at the Western Renewable Energy Generation Information System (WREGIS); (ii) obtained Renewables Portfolio Standard (RPS) ownership certification from the California Energy Commission (CEC) for the Customer’s Net Surplus Energy and provides this certification to CPA; and (iii) transferred ownership of the Renewable Energy Credits (RECs) associated with the Customer’s Net Surplus Energy to CPA.
For details on the CEC and WREGIS certification process, refer to the CEC’s RPS Eligibility Guidebook, which can be found at:
https://www.energy.ca.gov/programs-and-topics/programs/renewables-portfolio-standard 9 If a customer account has any outstanding balance at the time of Annual True-Up, the customer will have a 30-day grace period to pay in full before their Annual True-Up is performed in order to be eligible for Energy Export Credit refund.
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CPA Net Billing Tariff – Amended and Approved February 5, 2026Adopted July 6, 2023 - Effective September 1, 2023
CPA will use the RAA values calculated by SCE using the most recent Western Electricity Coordinating Council (WECC) average renewable premium, based on United States Department of Energy (DOE) published data. The RAA will only be paid to those customers eligible for NSC who provide RECs to CPA.
Value of RECs = Net Surplus kWh x RAA.
The RAA is updated annually by SCE and is available at:
https://www.sce.com/regulatory/tariff-books/rates-pricing-choices/renewable-energy-credit At the conclusion of each Relevant Period, the eligible customer must notify CPA that the customer has transferred the RECs associated with the Net Surplus Energy in WREGIS by completing Form 14-935 and will send the CEC RPS certificate with the form to CPA.
ii) CPA Annual Cash-Out: During the April monthly billing cycle of each year, any current customer with at least 12 months of enrollment in the CPA NBT Tariff who has a combined Refundable EEC and Net Surplus Compensation value of $100 or more that exceeds any outstanding Energy Charges, will be sent a payment by check via U.S. Mail to the customer’s U.S. mailing address on file at the time of mailing for the credit balance on their account, as determined through CPA’s Annual True-Up process as specified in this section d(i), above. Customers receiving direct payment will have an equivalent amount removed from their NBT account balance at the time of check issuance. In the event that customers do not have a combined Refundable EEC and Net Surplus Compensation value exceeding $100, such credit balance will be carried forward to offset future CPA Energy Charges, unless the customer requests issuance of a check for the credit balance by contacting the CPA Customer Service Center via phone or email. If such request is received on or after March 15, the request to receive funds via check will be effective in the following Relevant Period. If such a request is received after the customer’s rollover credit has been applied to charges in months following the Annual True-Up, a check will be issued for the remaining credit balance on the account. All NBT accounts will be reset to zero kilowatt-hours annually as of the customer’s May monthly billing cycle and the only NBT credits carried forward on the customer’s account will be the combined Refundable EEC and Net Surplus Compensation credit balances less than $100. Checks will expire 90 calendar days after issuance. If checks expire, the check amount will be returned to a customer’s NBT account as bill credits and will be applied toward future charges. iii) CPA Cash-Out for Terminations: Customers who close their electric account through SCE, opt-out of CPA and return to bundled service, or move outside of the CPA service area prior to the April monthly billing cycle of each year, shall be trued up according to CPA’s Annual True-Up Process. If applicable, the customer shall receive a refund payment by check via U.S. Mail to the customer’s U.S. mailing address on file at the time of mailing for any Export Energy Credits on their account that exceeds outstanding Energy Charges at the time of true-up, up to the total amount of Energy Charges paid by the customer during the Relevant Period. If determined to have produced Net Surplus Energy, the customer shall also receive a check via U.S. Mail to the customer’s mailing address on file at the time of mailing for Net Surplus Compensation, up to a maximum of $10,000. Payments are
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CPA Net Billing Tariff – Amended and Approved February 5, 2026Adopted July 6, 2023 - Effective September 1, 2023
released 30 days after final billing to allow for any revised usage and/or adjustments from SCE. Checks will expire 90 calendar days after issuance. If checks expire or are returned to CPA, customers may request the reissuance of a check for up to one year after check issuance date and CPA will make a reasonable effort to reissue the check within 30 days of a customer’s request. After one year, the funds will be considered unclaimed property and turned over to the California State Controller’s Office.
e) SCE NBT Program:
Customers are subject to all applicable terms and conditions and billing procedures of SCE for SCE charges as described in SCE’s NBT Rate Schedule (with the exception of CPA OAS charges, which are described in CPA’s rate schedules). CPA may amend this tariff to align with the SCE NBT Schedules following CPUC approval of the SCE NBT Schedules and any future amendments to the SCE NBT Schedules. CPA calculates and applies generation charges and credits on a monthly basis. SCE will continue to calculate and apply charges and credits for delivery, transmission, and other services as detailed in SCE’s NBT Rate Schedule, and CPA credits cannot be applied to any SCE charges.
Please review the SCE NBT Rate Schedule10 for more information. f) Return to SCE Bundled Service:
CPA customers participating in the CPA NBT Program may opt out and enroll in SCE’s bundled service, subject to any applicable restrictions imposed by SCE. Customers who opt out of CPA service are subject to SCE NBT Rate Schedule11.
If a CPA customer opts out more than 60 days after their initial enrollment date, CPA will perform a true-up of their account, as specified in Section (d)(iii), at the time of enrollment in SCE bundled service.
For details concerning opting out of CPA service, please contact CPA Customer Service at 888-585-3788 or [email protected]. g. Reservation of Rights
CPA reserves the right to modify, suspend, or terminate, one or more components of or all of the NBT Tariff at a duly-noticed public meeting of CPA’s Board of Directors. By enrolling or remaining enrolled in NBT Tariff, customer acknowledges and accepts CPA’s reservation of rights.
h. LIMITATION OF LIABILITY
FOR ANY ACT OR OMISSION IN THE PERFORMANCE OF THIS TARIFF, THE SOLE
AND EXCLUSIVE REMEDY SHALL BE THE AMOUNT OF DIRECT DAMAGE ACTUALLY INCURRED. IN NO EVENT SHALL ANY PARTY SUBJECT TO THIS TARIFF BE LIABLE 10 https://www.sce.com/regulatory/tariff-books/rates-pricing-choices/other-rates. 11 https://www.sce.com/regulatory/tariff-books/rates-pricing-choices/other-rates.
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CPA Net Billing Tariff – Amended and Approved February 5, 2026Adopted July 6, 2023 - Effective September 1, 2023
FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY
DAMAGES, INCLUDING LOST PROFITS, BUSINESS INTERRUPTION DAMAGES, OR TO ATTORNEY’S FEES WHETHER IN CONTRACT, TORT, OR STRICT LIABILITY.
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CPA NEM Tariff – Amended and Approved on July 6, 2023February 5, 2026 Page 1 of 5 Net Energy Metering (NEM) Tariff
APPLICABILITY: Clean Power Alliance of Southern California’s (CPA) Net Energy Metering Tariff (CPA NEM Tariff) is available to CPA customers who meet one of the following conditions:
1. Customer is enrolled under one of the following Southern California Edison’s (SCE) net energy metering rate schedules (“SCE NEM Schedules”): (i) Schedule NEM (Net Energy Metering); (ii) Schedule NEM-ST (Net Energy Metering Successor Tariff), (iii) Schedule NEM-V (Virtual Net Energy Metering for Multi-Tenant and Multi-Meter Properties); (iv) Schedule NEM-V-ST (Virtual Net Energy Metering for Multi-Tenant and Multi-Meter Properties Successor Tariff); (v) Schedule MASH-VNM (Multifamily Affordable Solar Housing Virtual Net Metering); (vi) Schedule MASH-VNM-ST (Multifamily Affordable Solar Housing Virtual Net Metering Successor Tariff); (vii) Schedule BG-NEM (Biogas Net Energy Metering); and (viii) Schedule FC-NEM (Fuel Cell Net Energy Metering).
2. Customer begins service on SCE’s Net Billing Tariff (Schedule NBT, or “SCE NBT Rate Schedule”)1 prior to September 1, 2023.
SCE NEM and NBT Schedules are available at: https://www.sce.com/regulatory/tariff-books/rates-pricing-choices/other-rates and may be amended or replaced by SCE from time to time. The CPA NEM Tariff may be amended from time to time or replaced by CPA’s Board of Directors (“Board”) at a duly-noticed public meeting of the Board.2 Eligible CPA customers who meet the requirements for a SCE NEM Schedule will be automatically enrolled in the CPA NEM Tariff at the time of initially enrolling with CPA or at the time SCE accepts them into SCE’s NEM Program.
Customers who enroll in the SCE NBT Schedule prior to September 1, 2023, will be automatically enrolled in the CPA NEM Tariff. These customers are eligible to continue enrollment in the CPA NEM Tariff for 20 years from the year in which they received permission to operate (PTO) from SCE, provided that they continue to meet the applicable conditions of SCE’s NEM-ST Schedule.
At CPA’s discretion, customers who begin service under the SCE NBT Schedule between September 1, 2023 and December 31, 2023 and can document that their NEM or NBT application was submitted to SCE prior to September 1, 2023, may be placed on the CPA NEM Tariff for 20 years following their original PTO date.
Customers enrolled in or eligible for the CPA NEM Tariff may voluntarily elect to be served instead under the CPA Net Billing Tariff (“CPA NBT Tariff”).3 Customers who voluntarily switch from the CPA NEM Tariff to the CPA NBT Tariff or who are automatically transitioned to the CPA NBT Tariff following the termination of their NEM legacy period are not eligible to return to service under the CPA NEM Tariff.
1 SCE’s proposed NBT Schedule was submitted to the California Public Utilities Commission in Advice 4961-E and 4961-E-A, available at www.sce.com/regulatory/advice-letters. 2 Board agendas are available at: https://cleanpoweralliance.org/get-involved/agendas-minutes/ 3 Information about the CPA NBT Program is available at www.cleanpoweralliance.org/nem/.
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CPA NEM Tariff – Amended and Approved on July 6, 2023February 5, 2026 Page 2 of 5 RATES: All rates for the CPA NEM Program will be in accordance with the customer’s otherwise applicable CPA rate schedule (CPA OAS). Nothing in this tariff will supersede any SCE authorized charges.
CHARGES & BILLING: CPA’s charges for energy (kWh) will be calculated at the CPA OAS and billed on the net metered usage, as described below.
a) For a customer with Non-Time of Use (TOU) Rates4:
If the customer is a “Net Consumer,” having overall positive usage during a specific monthly billing cycle, the customer will be billed in accordance with the customer’s CPA OAS.
If the customer is a “Net Generator,” having overall negative usage during a specific monthly billing cycle, any net energy production shall be valued at the applicable rate as set forth in the customer’s CPA OAS. The calculated value of any net energy production shall be credited to the customer according to the CPA OAS and applied as described in Sections (c) and (d).
b) For a customer with TOU Rates:
If the customer is a Net Consumer during any discrete TOU period reflected within a specific monthly billing cycle, the net kWh consumed during such TOU period shall be billed in accordance with applicable TOU period-specific rates or charges as specified in the customer’s OAS.
If the customer is a Net Generator during any discrete TOU period reflected within a specific monthly billing cycle, any net energy production shall be valued at the applicable TOU period-specific rates or charges as specified in the customer’s CPA OAS. The calculated value of such net energy production shall be credited to the customer according to the CPA OAS and applied as described in Sections (c) and (d). c) Monthly Settlement of CPA Charges/Credits:
Each customer will receive a statement as part of its monthly SCE bill indicating any accrued charges for electric energy usage during the current monthly billing cycle. When a customer’s net energy production results in an accrued credit balance in excess of currently applicable charges, the value of any net energy production during the monthly billing cycle (in excess of currently applicable charges) shall be valued at the CPA OAS and noted on the customer’s bill, including the quantity of any surplus NEM production (measured in kWh), and carried over as a bill credit for use in a subsequent billing cycle(s).
A customer who has accrued credits during previous billing cycles will see such credits applied against currently applicable charges, reducing otherwise applicable charges by an equivalent amount to such credits. Any remaining credits reflected on the customer’s billing statement shall be carried forward to subsequent billing cycle(s) until either the 4 Only applicable to grandfathered SCE NEM 1.0 customers. Please visit www.sce.com/residential/generating-your-own-power/net-energy-metering for more information.
Agenda Page 82
CPA NEM Tariff – Amended and Approved on July 6, 2023February 5, 2026 Page 3 of 5 excess the credit is used to satisfy current charges, the customer no longer receives service from CPA or an annual account true-up is performed. d) CPA Annual True-Up & Cash-Out Processes:
i) CPA Annual True-Up: During the April monthly billing cycle of each year, CPA will perform a true-up of the most recent twelve (12) month billing cycle, or the period of time from the customer’s commencement of participation in the CPA NEM Program up to the following April (the “Relevant Period”). If as of April an active customer has less than 12 months of enrollment in the CPA NEM Tariff, their first Annual True-Up will take place during April of the following year and then every 12 months thereafter. A True-Up can be issued after April if CPA is missing usage for a customer, or if SCE is processing billing corrections.
For customers who enrolled in the CPA NEM Program prior to May 1, 2019, CPA will perform the first Annual True-Up in April 2020. Commencing in April 2021, CPA will perform the Annual True Up each April for the 12-month period between April to March for all active NEM customers with at least 12 months of participation in the CPA NEM program.
a. NEM Generation Credit Refund: At the time of the Annual True-Up, if the customer has accumulated any NEM generation credits in excess of any currently outstanding charges, those NEM generation credits will be refunded to the customer up to the total CPA charges paid by the customer on the same NEM account during the Relevant Period, consistent with CPA’s Annual Cash-Out practice in (ii).5 b. Net Surplus Compensation: Net Surplus Energy is defined as any generation that exceeds total customer energy usage during the Relevant Period, as measured in kWh. CPA will also determine at the time of Annual True-Up whether each customer has produced Net Surplus Energy over the course of the Relevant Period. If a customer has produced Net Surplus Energy, then CPA shall credit such customer an amount not to exceed $10,000 that is equal to the current Net Surplus Compensation rate per kWh, as defined in CPA Net Surplus Compensation Rate Schedule, multiplied by the quantity of Net Surplus Energy produced by the customer during the Relevant Period, consistent with CPA’s Annual Cash-Out practice in (ii) below. The CPA Net Surplus Compensation Rate Schedule will be posted to CPA’s website and updated monthly. CPA Net Surplus Compensation Schedule can be viewed at www.cleanpoweralliance.org/solar/.https://cleanpoweralliance.org/wp-content/uploads/2019/01/CPA-NSCR.pdf. ii) CPA Annual Cash-Out: During the April monthly billing cycle of each year, any current customer who has a combined NEM generation credit and Net Surplus Compensation value of $100 or more, as determined during the Annual True-Up 5 If the Customer Account has any outstanding balance at the time of Annual True-Up, the customer will have a 30- day grace period to pay in full before their Annual True-Up is performed in order to be eligible for NEM Generation Credit refund.
Agenda Page 83
CPA NEM Tariff – Amended and Approved on July 6, 2023February 5, 2026 Page 4 of 5 process, that exceeds any outstanding charges, will be sent a payment by check via U.S. Mail to the customer’s U.S. mailing address on file at the time of mailing for the credit balance on their account, as determined through CPA’s Annual True-Up process (i). Customers receiving direct payment will have an equivalent amount removed from their NEM account balance at the time of check issuance. In the event that customers do not have a combined NEM generation credit and Net Surplus Compensation value exceeding $100, such credit balance will be carried forward to offset future CPA charges, unless the customer requests issuance of a check for the credit balance by contacting the CPA Customer Service Center via phone or email. If such a request is received after the customer’s rollover credit has been applied to charges in months following the annual true up, a check will be issued for the remaining credit balance on the account. If such request is received on or after March 15, the request to receive funds via check will be effective in the following Relevant Period. All NEM accounts will be reset to zero kilowatt hours annually as of the customer’s May monthly billing cycle and the only NEM credits that will be carried forward on the customer’s account will be the combined NEM generation credit and Net Surplus Compensation credit balances less than $100. Checks will expire 90 calendar days after issuance. If checks expire, check amount will be returned to a customer’s NEM account as bill credits and will be applied toward future charges.
iii) CPA Cash-Out for Terminations: Customers, who close their electric account through SCE, opt-out of CPA and enroll in bundled service, or move outside of the CPA service area prior to the April monthly billing cycle of each year, shall be trued up according to CPA’s Annual True-Up Process. If applicable, the customer shall receive a refund payment by check via U.S. Mail to the customer’s U.S. mailing address on file at the time of mailing for any NEM generation credit on their account that exceeds outstanding charges at the time of true-up, up to the amount paid by the customer during the Relevant Period. If determined to have produced Net Surplus Energy, the customer shall also receive a check via U.S. Mail to the customer’s mailing address on file at the time of mailing for Net Surplus Compensation, up to a maximum of $10,000. Payments will be released 30 days after final billing to allow for any revised usage and/or adjustments from SCE.
Checks will expire 90 calendar days after issuance. If checks expire or are returned to CPA, customers may request the reissuance of a check for up to one year after check issuance date and CPA will make a reasonable effort to reissue the check within 30 days of a customer’s request. After one year, the funds will be considered unclaimed property and turned over to the California State Controller’s Office.
e) SCE NEM Program:
Customers are subject to applicable terms and conditions and billing procedures of SCE for SCE charges as described in SCE NEM Rate Schedules (with the exception of generation-related charges, which are described in CPA’s rate schedules). Customers should be aware that while CPA settles balances for generation on a monthly basis, SCE will continue to calculate charges for delivery, transmission and other services annually
Agenda Page 84
CPA NEM Tariff – Amended and Approved on July 6, 2023February 5, 2026 Page 5 of 5 for those customers with an annual billing option, and CPA NEM credits cannot be applied to any SCE charges.
Customers are encouraged to review SCE NEM Rate Schedules at https://www.sce.com/regulatory/tariff-books/rates-pricing-choices/other-rates. f) Enrollment in SCE Bundled Service:
CPA customers participating in the CPA NEM Program may opt out and enroll in SCE’s bundled service, subject to any applicable restrictions imposed by SCE. If a CPA customer opts out more than 60 days after their initial enrollment date, CPA will perform a true-up of their account, as specified in section (d)(iii), at the time of enrollment in SCE bundled service. For details concerning opting out of CPA service, please contact CPA Customer Service at 888-585-3788 or [email protected]. g. Reservation of Rights
CPA reserves the right to modify, suspend, or terminate, one or more components of or all of the NEM Tariff at a duly-noticed public meeting of CPA’s Board of Directors. By enrolling or remaining enrolled in NEM Tariff, customer acknowledges and accepts CPA’s reservation of rights.
h. LIMITATION OF LIABILITY
FOR ANY ACT OR OMISSION IN THE PERFORMANCE OF THIS TARIFF, THE SOLE
AND EXCLUSIVE REMEDY SHALL BE THE AMOUNT OF DIRECT DAMAGE ACTUALLY INCURRED. IN NO EVENT SHALL ANY PARTY SUBJECT TO THIS
TARIFF BE LIABLE FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL, PUNITIVE OR
EXEMPLARY DAMAGES, INCLUDING LOST PROFITS, BUSINESS INTERRUPTION DAMAGES, OR TO ATTORNEY’S FEES WHETHER IN CONTRACT, TORT, OR STRICT LIABILITY.
Agenda Page 85
Staff Report – Agenda Item 5
To: Board of Directors
From: Christian Cruz, Senior Community Outreach Manager Approved by: Ted Bardacke, Chief Executive Officer
Subject: Community Advisory Committee (CAC) Report
Date: February 5, 2026
RECOMMENDATION
Receive and file.
MEETING REPORT
CPA Multifamily Programs
The CAC received a presentation on CPA’s Multifamily Programs, which support multifamily tenants by advancing energy efficiency, renewable energy adoption, and grid resilience. CPA offers a suite of multifamily programs that align with CPA’s three core program pillars and are designed to advance community decarbonization and sustainability. The CAC received an overview of the following new multifamily programs that CPA will make available to customers in the coming months.
1. Multifamily Electric Vehicle (EV) Charging Program: This program will provide turnkey technical assistance and incentives to multifamily properties to support the installation of low-powered EV charging outlets and level 2 chargers for resident use.
2. Multifamily Efficient Cooling Program: This program will assist property owners and managers in identifying cost-effective cooling solutions and advising on efficiency measures to reduce overall energy consumption.
In addition, CPA staff provided an overview of engagement strategies for these new programs and requested that the CAC provide ongoing feedback as these programs are introduced within CPA communities. This feedback will help ensure that CPA effectively
Agenda Page 86
Board of Directors Item 5
partners with key community-based organizations and property owners to make eligible customers aware of the available programs and associated benefits.
ATTACHMENT
1. CAC Meeting Attendance
Community Advisory Committee Attendance
2026
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov
East Ventura/West LA County
Angus Simmons ✓
Kat Selm ✓
Debbie West A
San Gabriel Valley
Casey Law ✓
Hamarz Aryafar ✓
West/Unincorporated Ventura County
Kent Bullard ✓
Daniel Mora ✓
South Bay
Cort Casady A
Diane Wallace A
Gateway Cities
Luis Alvarez ✓
Genaro Bugarin ✓
Westside
Cris Gutierrez A
David Haake ✓
Unincorporated LA County
Neil Fromer ✓
Margaret Fuentes ✓
✓ - Attended A – Absent X – Medical/Personal Leave Gray – Vacant/Dark Action Items and Presentations
January
CPA Multifamily Programs
July
February August
March September
April October
May November
June December
Agenda Page 87
Staff Report – Agenda Item 6
To: Board of Directors
From: Joanne O’Neill, Senior Director, Customer Programs Reviewed By: Matthew Langer, Chief Operating Officer
Francis Choi, Assistant General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Customer Programs Quarterly Report
Date: February 5, 2026
RECOMMENDATION
Receive presentation from staff.
ATTACHMENTS
1. Customer Programs Quarterly Reporting Presentation
2. Customer Programs Quarterly Report – Q4 2025
Agenda Page 88
New Customer Programs
Quarterly Reporting
February 5, 2026
Agenda Page 89
Agenda
2 Purpose of New Reporting
Overview of Report Content
What is Not Currently Included in
the Report
Question for Board Feedback
Informational Item
Feedback Requested
Agenda Page 90
New Customer Programs Quarterly
Reporting
3 Purpose: Provide overall program status, key accomplishments, challenges and risks, and impacts for the portfolio of customer programs.
Goal: Share benefits and impacts of the programs CPA offers its customers and increase visibility to the Board of Directors, Community Advisory Committee and public.
Cadence: Report will be issued quarterly for the previous 3-month period and will be combined with the existing Quarterly Member Agency Programs report.
Agenda Page 91
Customer Programs Report Content
4 Report overview,
program definitions,
and report period
Program portfolio
impacts, highlights,
challenges and risks,
and goals
Agenda Page 92
Customer
Programs
Report
Content
5 Detailed participation
and impacts by
program
Agenda Page 93
What is not
currently included:
6 Methodology for calculating
greenhouse gas emission (GHG)
impacts and other noted data fields
are under development
Metrics and impacts by member
agency, these will be made available
via your Portal
Spend versus budget will continue
to be reported annually due to
variability in timing of expenditures
Member agency programs will
continue to be detailed in their own
section of the Quarterly Report
Member Agency Portal
Agenda Page 94
Question for Board Feedback
7 As the Customer Programs reporting continues to evolve, what additional information would be useful?
Agenda Page 95
Thank you
Agenda Page 96
Attachment 2: Customer Programs Quarterly Report – Q4 2025
INTRODUCTION
In June 2020, the Board of Directors approved a "Local Programs for a Clean Energy Future" strategic plan and in 2023 CPA published the Local Programs Action Plan building upon the strategic plan and outlining new programs it planned to launch over the next several years. These programs fall into three categories, or “program pillars,” and offer a combination of incentives and technical support to help advance projects for residential, commercial, and public sector customers. The “program pillars” include:
1. Resilience and Grid Management: Resilience programs are designed to support customer and community resilience to climate related impacts such as extreme heat and wildfires. Grid management offerings increase reliability and affordability by reducing the cost to procure energy and providing emergency resources during times of high usage and grid strain.
2. Building and Transportation Electrification: These programs help transition buildings and vehicles from fossil fuel sources to clean electricity, thereby reducing greenhouse gas emissions while improving both indoor and outdoor air quality.
3. Local Clean Energy Procurement: These programs and procurement initiatives increase access and availability of clean energy resources within CPA communities, increasing the volume of renewable resources, increasing our customers’ ability to generate on-site clean energy, and creating local jobs and economic development.
This quarterly report provides overall program status, key accomplishments, challenges and risks, and impacts for the Clean Power Alliance (CPA) portfolio of customer programs.
The Q4 2025 report covers data and activities from October 1st to December 31st, 2025.
This quarterly report excludes the Power Ready and Energized Communities programs, which focus directly on supporting member agencies only, and the status of which is Agenda Page 97
already reported to the Board in an existing Member Agency Quarterly Report. Future Programs Quarterly Reports will combine these two separate reports.
CUSTOMER PROGRAMS ACTIVITIES: Q4 2025
Key Accomplishments
• Launched the Capacity Bidding Program – Elect, which enables customers to enroll in a qualified demand response program through CPA, encouraging them to temporarily reduce energy use to support grid reliability and qualifying customers for the Self-Generation Incentive Program (SGIP) battery rebate. • Began installation of solar PV and battery systems for income-qualified customers under the Solar and Battery Access Program, with 13 installations completed by the end of 2025. These customers will benefit from the resilience of the battery during an outage and see an estimated 70% electricity bill savings. • CPA extended the end date for the six participants of the Reach Code Program from June 2026 to December 2026 to allow participating member agencies more time to review, propose, and adopt their new and existing reach codes, and building performance standards. In late 2025, Ojai became the first CPA member agency to adopt an existing building reach code, which is awaiting final approval from the California Energy Commission.
• In October 2025, CPA launched home hardening support as part of Energy Team.
Residential customers are now eligible to receive a virtual assessment and consultation to find areas of fire risk on their property and then receive an action plan to help mitigate wildfire risk while improving their home’s energy efficiency. 25,251
participants
$5.3M in
customer bill
savings
$1.22M in
customer
incentives
3.82 MW of
demand
response
capacity
Shifted
887,918 kWh
of EV charging
CPA Customer Programs Impacts
Agenda Page 98
• Through CPA’s workforce training and development funding, partners held five Wildfire Defense Professionals Trainings that served 154 contractor attendees and graduated 95 students from Multi-Craft Core Curriculum (MC3) pre-apprenticeship trainings in 2025.
Challenges and Risks
• Part of the funding for the Solar and Battery Access Program (SBAP) comes through the statewide SGIP program, which was fully allocated on the first day of availability. Currently 49 SBAP projects ($1.4M in funding) have been waitlisted.
SBAP projects that do not receive SGIP funding will be cancelled. • The Instant AC Program leverages the California Public Utilities Commission-funded Golden State Rebates program infrastructure and layers additional incentives to maximize the benefits to customers. This program is currently slated to end June 30, 2026. CPA, in partnership with the Golden State Rebates implementer, is evaluating options to ensure that a CPA-funded program is available to customers without state infrastructure support.
Goals for Next Quarter
• In 2026, CPA expects seven more cohorts of pre-apprenticeship trainings in Los Angeles County and staff are working to finalize an MOU for additional pre-apprenticeship training courses in Ventura County. • CPA plans to issue Request for Proposals (RFPs) for vendor(s) to enter into Professional Services Agreements (PSA) to implement three different programs.
Once negotiated, these PSAs will be presented to the Board of Directors for approval. They include:
o With the existing Power Response contract expiring this year, issue a new RFP integrating program enhancements to customer experience and incentive payment processes and expanding the focus to include small businesses.
Agenda Page 99
o New Multifamily Electric Vehicle Charging Program, which will provide technical assistance and incentives to multifamily properties to install low-powered EV charging outlets and level 2 chargers for residents to use. o New Multifamily Efficient Cooling Program that will increase availability of high-efficiency cooling equipment for tenants and property owners and managers in extreme heat prone areas.
Agenda Page 100
Customer Programs Detailed Metrics Report Q4 2025
Program Name / Program Description Current
Participation
Program-to-Date Results
Incentives
Paid
Customer Bill
Savings
Energy
Impacts
Resilience and Grid Management
Instant AC Savings:
CARE or FERA customers can receive a $300
instant coupon toward the purchase of an energy
efficient room air conditioner at participating
retailers.
158 $47,100 NC NC
Power Response:
Incentivizes customers to temporarily reduce their
electricity usage during periods of high energy
demand through behavioral changes or by
leveraging smart devices.
3,500 $548,629 NC
Energy saved
during DR
event:
287,592 kWh
EV SmartCharge:
Customers receive incentives for enrolling and
participating in the app-based program that
manages an electric vehicle’s charging schedule
to switch charging to off-peak periods.
1,366 $144,590 $97,767
Energy Shifted
Off Peak:
887,918 kWh
Peak Management Pricing:
Customers receive bill credits based on
performance to shift or lower energy usage during
designated high-peak events to reduce system
stress and improve grid reliability.
12 NC NC NC
Capacity Bidding Program – Elect:
Enables customers to enroll in a qualified demand
response program through CPA, as an SCE-approved aggregator, to temporarily reduce energy use to support grid reliability and qualify
for the SGIP battery rebate.
8 NA NC NC
Building and Transportation Electrification
Agenda Page 101
California Electric Vehicle Infrastructure
Project (CALeVIP):
In partnership with the California Energy
Commission, the program provides rebates for
level 2 EV chargers.
15 $322,757 NA NC
Energy Team:
Expert Energy Guidance, no-cost energy upgrade
assessments, and information on ways to access
available rebates for homes or small businesses.
258 NA NC NC
Local Clean Energy Procurement
Sun Storage Rebate:
Residential customers who install a battery
storage system with new or existing solar can
apply for a rebate of up to $2,250.
136 $110,250 NC NC
Power Share:
Develops local solar projects and provides 100%
clean energy at a 20% bill discount for income-qualified, residential customers in disadvantaged communities prioritizing customers at risk of
disconnection.
9,804 NA $5,241,554
135,972,787
kWh of 100%
Green Energy
Delivered
Solar and Battery Access:
Provides income-qualified homeowners with solar
and battery storage system with no out-of-pocket
expenses for equipment and installation.
178 NA NC NC
Definitions:
NA = Not applicable
NC = Not currently calculated, may be calculated at a later time Agenda Page 102
Staff Report – Agenda Item 7
To: Board of Directors
From: Cara Rene, Senior Director, Communications & Marketing Approved By: Ted Bardacke, Chief Executive Officer
Subject: Quarterly Communications Update
Date: February 5, 2026
RECOMMENDATION
Receive presentation from staff.
ATTACHMENT
1. Quarterly Communications Update
Agenda Page 103
Communications & Marketing
Community Engagement
A look ahead to 2026
Plus, Quarterly Update
November and December 2025
February 5, 2026
Agenda Page 104
A strong foundation on which to build
2 Areas of strength
Research gives CPA critical insights into customer
behaviors and attitudes about clean energy that inform
strategies for targeted outreach and messaging
Growth in brand awareness from sustained presence that
reflects CPA’s values and benefits to customers
Incorporating online tools that make it easier for our
customers to engage with CPA and find information that
helps them conserve energy and save money
Cultural relevancy and connection in our communications Development and distribution of mass customer
communications
Customer-centric storytelling designed to celebrate
successes and provide valuable information and guidance Areas of growth and opportunity
Increase visual communications content such as videos, local photography and infographics to enhance layered storytelling Build relationships with media and community messengers and provide content to help amplify CPA stories
Raise CPA’s profile in thought leadership through growing the visibility of CPA’s CEO, staff subject matter experts and key stakeholders
Events and in-person experiences to deepen the relationship with our customers and further build brand presence in our communities Agenda Page 105
Focus Areas in 2026
Building on our momentum with approaches that strengthen and grow the Clean Power Alliance brand, deepen the relationship with our customers and enhance our storytelling. 3 Awareness Engagement
Community events
Program engagement
Interactive tools
Social media
Research/strengthening
customer insights
Homepage refresh/navigation
Education
Information toolkits
Talking points
Content that highlights CPA
thought leadership and
elevates our profile
Refreshed brand campaign
Program campaign
Event activations
Media newsroom
Monthly newsletter
Agenda Page 106
A look ahead: Engagement in 2026
4 Engage customers to participate in CPA storytelling
Develop a mobile education experience to engage and inform customers about CPA and clean energy benefits
Engage with local community-based organizations to share CPA program opportunities with residents and businesses
Launch online newsroom to elevate storytelling, strengthen media resources and grow understanding of CPA
Research to strengthen customer insights and measure awareness and clean energy attitudes
Begin communications planning for onboarding the cities of Cudahy and Fillmore in 2027
Engage city managers to provide their feedback on CPA customer programs to ensure they provide value to member agencies Host CPA Board and CAC retreats to plan priorities and engagement for the coming year
Agenda Page 107
A look ahead: Building our visibility
5 Position CPA as the trusted, community-driven leader in clean energy for Los Angeles and Ventura counties.
Create content to engage media and better tell our stories to customers and stakeholders.
Develop new online experience for media
Develop CPA voices – build a roster of go-to experts
News releases- sharing our news broadly
Newsletter – tell our stories and highlight news
Create content specific social media – build messaging
frameworks around audience and information groups
Continuing building on video messaging opportunities to highlight CPA leadership in the clean energy industry
and amplify benefits to customers and communities
Video messaging informs and educates while
giving visibility to CPA staff and stakeholders
Agenda Page 108
A look ahead: Brand awareness
CPA is re-launching our "Change is Electric" brand awareness campaign, February through May.
The brand campaign will prioritize high-impact awareness by aligning CPA with a major cultural moment through premium streaming TV during the 2026 Winter Olympics, maximizing visibility among engaged audiences. Other brand placements during the campaign include bus wraps, pole banners, and podcasts to heighten visibility.
Pole banners Bus wrap Streaming television Podcasts
Agenda Page 109
A look ahead: Customer resources
Q1 + Ongoing
Time of Use
The Time-of-Use webpage was updated
with an interactive tool that helps
customers understand when pricing
changes and make informed energy-use
choices throughout the day.
Q1 + Ongoing
Wildfire Recovery
Promoting a collection of CPA and
community wildfire resources to support
customer preparedness, safety awareness,
and access to critical information.
• Website • Social media • Website refresh • Social media Q2 + Ongoing
Website
The website will receive a homepage refresh
and streamlined navigation to help customers
find information more efficiently. Growth in web
traffic and overall CPA offerings and content
over the past three years has outpaced our
current structure, making this redesign essential.
• Website refresh
Agenda Page 110
A look ahead: Program marketing
Q1 + Ongoing
Power Share
Power Share provides qualifying customers with locally
generated 100% renewable energy and a 20% monthly
bill discount. With new community solar projects coming online that serve these customers, we will celebrate the projects and enroll more customers into the program.
• Webpage
• Email • Direct mail
Q1
• Webpage
• Paid media
• Direct mail
• Emails
EV SmartCharge
Marketing will begin to encourage current EV SmartCharge participants to switch to the TOU-SMART rate. At the same time, we will continue recruiting new customers into the program to promote charging patterns that support grid reliability Equitable Building
Decarbonization
Working with LA County and Southern
California Regional Energy Network, CPA
will engage customers to support local
electrification needs in residential
communities. The first community focus
areas in this program are Bassett
Avocado Heights, Carson, Hawaiian
Gardens, Hawthorne and Paramount.
Q2-3
• Tactics TBD
Agenda Page 111
A look ahead: Program marketing
Ongoing Ongoing
Power Response
We are enhancing Power Response marketing by
ramping up commercial outreach earlier in the
season with more education-focused messaging
to boost awareness and participation.
Sun Storage Rebate
We are marketing the Sun Storage Rebate through a
two-prong approach: (1) targeted contractor outreach,
(2) customers at large, with an emphasis on those
customers who live in high wildfire risk areas.
Ongoing
Energy Team
The Energy Team is now promoting fire hardening support and electrification programs in addition to other CPA program offerings, giving customers tools for home safety and energy efficiency while advancing clean energy adoption.
• Post Card
• Emails
• Paid Media • Direct mail
• Emails
• Website optimization • Paid media
• Direct mail
• Email
• Paid Media
Agenda Page 112
A look ahead: Program marketing
Ongoing Ongoing
Instant AC Savings
Working to increase redemptions of the Instant
AC Savings coupon and increasing the breadth of
marketing materials to customers facing language
barriers and the digital divide.
Green Leader
Ongoing
Capacity Bidding Program - Elect
We are reaching out to targeted CPA customers
interested in the Capacity Bidding Program - Elect to
help them participate and receive their SGIP incentives. • Direct mail • Email • Direct mail
• Email
• Paid Media
The Green Leader program recognizes
businesses on 100% Green Power for their
environmental leadership. We are expanding
outreach to partner communities and CBOs
to grow participants.
• Email • Community
partnerships
Agenda Page 113
Questions
Agenda Page 114
6 Quarterly Update
November – December 2025
Agenda Page 115
7 Marketing Update: New Capacity Bidding Program - Elect 10 CPA has become a Capacity Bidding Program-Elect (CBP-E) Aggregator through Southern California Edison (SCE) to offer CPA residential and commercial customers access to solar battery incentives through Self Generation Incentive Program (SGIP) without leaving CPA service.
Strategic Approach:
In December we launched the CBP-E webpage to inform and educate customers about the program and encourage enrollments.
Coming soon: emails targeting SGIP applicants, and contractors; print and retargeting communications.
Webpage
Agenda Page 116
Marketing update: Solar and Battery Access
10 Meta ads
The Solar and Battery Access program provides income-qualified residents a solar and battery system with no cost for equipment and installation.
Strategic Approach:
An integrated awareness and direct-to-consumer strategy leveraged highly trafficked community placements at the same time customers were targeted with direct mail and email to expand reach in priority zip codes.
Since Spanish speakers account for 41% of engaged users, CPA included a high-performing in-language sponsorship with the LA Galaxy which included tactics across Meta and radio to build awareness and strengthen audience engagement.
Outcomes:
22,138 website visitors
41 solar and battery contracts signed (144 total)
8 battery only contracts signed (20 total)
Bus shelters and
digital billboards
Agenda Page 117
Marketing Update: EV SmartCharge
The EV SmartCharge program helps EV customers save money by charging their vehicles at home at the right time, every time.
Strategic Approach:
An insights-driven digital strategy refined Meta audience targeting based on research into program participants and EV owners, supported by sustained search advertising to maintain consistent program visibility.
EV SmartCharge’s sponsorship of the 2025 LA Auto Show placed the program in front of high-intent EV shoppers and industry stakeholders, reinforcing brand relevance at a key moment in the customer decision journey.
Outcomes:
2,314 website visits via ads and direct mail
215 new users acquired
Email
Agenda Page 118
Strategic Approach:
Brand presence at the EV test track booth: Maximized visibility and enabled direct engagement with EV owners and high-intent EV attendees.
Radio promotions: Drove awareness and attendance among engaged automotive audiences.
Promotional emails and social media: Targeted outreach to current and prospective EV shoppers.
Outcomes:
20,000 visitors to the Clean Power Alliance test track
10,000 visitors to the CPA booth
8,500+ branded items distributed
2,000+ printed resources for CPA programs given away
1M+ online views via webpages, emails, and social media Marketing Update: LA Auto Show Activation
At the 2025 LA Auto Show, CPA’s EV SmartCharge program made a high-impact brand play, strengthening visibility and relevance with key EV audiences in Southern California.
CPA branded tower at entrance
Mini EV photo op CPA booth
Agenda Page 119
Marketing Update: Sun Storage Rebate
The Sun Storage Rebate program is an incentive program — offering rebates up to $2,250 — for eligible residential customers who install a battery storage system paired with a solar PV (solar panel) system.
Strategic Approach:
Framed solar storage as a lifestyle and security investment instead of a technical upgrade.
Highlighted the rebate as a cost-saving opportunity
Advertised on digital platforms that meet consumers at the intersection of learning about solar batteries and deciding to install, giving CPA customers an incentive to follow through on their home battery installation project.
Targeted households inside communities that have the
highest amount of battery adoption and home ownership.
Outcomes:
3,820 website visits via ads and direct mail
Meta ads
Agenda Page 120
Marketing update: Power Response
Marketing for the Power Response program focused on engaging customers to shift energy use in support of grid reliability, concluding in early November, while a test campaign was launched to promote the Commercial Leaders pathway and drive awareness of the program’s dedicated web presence.
Strategic Approach:
Email drip campaign highlighted the program's different benefits to appeal to customers' varying motivations (such as earning money, helping the environment) and motivate them to enroll.
An integrated three-pronged digital strategy—social,
display, and search—was deployed to capture demand
across the customer journey and efficiently drive high-intent traffic to the Power Response webpages.
Outcomes:
7,077 website visits via paid media and emails
Social media
Agenda Page 121
Marketing update: Instant AC Savings
The Instant AC Savings program provides income-qualified residents with a $300 coupon to purchase an energy-efficient room air conditioner.
Email
Strategic Approach:
To support awareness and engagement during the winter months we implemented an “always-on” Search Engine Marketing (SEM) strategy.
Targeted Black Friday email highlighted the $300 coupon to drive engagement and accelerate customer action at a key "purchase mindset" moment during the holiday shopping season.
"Redemption Reminder" emails encouraging customers who have claimed coupons to redeem them before their expiration.
Outcomes:
1,943 total website visitors
31 coupons reserved (561 total)
21 coupons redeemed (157 total)
Agenda Page 122
Marketing update: Solar and Battery Access
Email
Strategic Approach:
A final prospecting email was deployed to encourage eligible customers to submit applications ahead of SGIP portal re-opening on 11/3.
Notifications went to customers with update about SGIP funding being fully allocated via website and email.
Outcomes:
1,102 total website visitors (with paid media concluding 11/3) 1 SGIP funding update email sent out early January
The Solar and Battery Access program provides income-qualified residents a solar and battery system with no cost for equipment and installation. As of November 3, 2025, Self-Generation Incentive Program (SGIP) funding has been fully allocated for the program and paid media promotion concluded.
Agenda Page 123
Marketing Update: Energy Team
The Energy Team service helps CPA customers with everything from energy upgrade and fire hardening assessments to providing information on ways to access available rebates for homes or small businesses – all at no charge.
Strategic Approach:
Deepened the position of the Energy Team as a resource to CPA customers by adding the Energy Team contact information to webpages where customers may want personalized guidance.
Meta and search ads: Maintained visibility for the Energy Team to keep the service availability top of mind for CPA customers when they are in need of a resource for personalized guidance.
Supported electrification initiatives in the City of Ventura by delivering social media assets that connect CPA customers with the Energy Team service.
Outcomes:
Meta ads 5,267 website visits via ads and influencers
Energy Team commercial
Agenda Page 124
Marketing Update: Green Leader
The Green Leader program, which celebrates businesses for their environmental leadership by choosing 100% Green Power, has grown to 39 Green leaders.
Strategic Approach:
A survey was sent to current Green Leader customers to ascertain what aspects of the program bring value and what’s needed to strengthen program participation.
Develop a new Green Leader social media toolkit that will be available for communities to use to promote themselves, businesses and chambers.
Work with member agencies to promote the Green Leader program as an add-on to their own programs. Currently partnering with the cities of Malibu and Ventura.
Outcomes:
Three new businesses enrolled as Green Leaders
Promotional toolkit 157 website visits via the Green Leader webpage in development
New fact sheet
Agenda Page 125
Community Engagement
23 Staying active in LA and Ventura Counties
20 presentations or meetings with key
stakeholders including city councils, state
elected officials, community-based
organizations and neighborhood groups.
3 community events at street fairs, climate
awareness events, and community celebrations
allowed CPA staff and CAC members to
increase education and awareness about CPA.
9 meetings with business associations to share
program participation and relevant contracting
opportunities.
.
Engagements included:
Met with all grantees from 2024/25 Community Benefits
Grant cycle to document the work accomplished and identify new opportunities to work together
Met with various members of CPA’s legislative delegation in their district offices to share CPA’s local programs and community engagement
Participated in the first Conejo Valley Community Action Fair Presented to the CalCCA Equity Committee to share CPA’s outreach and engagement successes for hard-to-reach
communities with other CCAs
Community Engagement Community Engagement
Agenda Page 126
Earned Media Highlights
24 In this period, Clean Power Alliance distributed one news release. The release plus additional organic mentions garnered a global news coverage total of $5.99M in earned media value. Sentiment mostly positive or neutral.
Media Potential
Reach
Earned
Value
Exposure
Mentions
Print/Online 647M $5.99M 892
High-performing Media Outreach:
Clean Power Alliance Earns “A” Credit Rating from Standard & Poor’s; audience reach of 35.1M, 2.86k views, 125 mentions
Notable Earned Media Mentions:
Smart Cities Dive: Climate Change is Rapidly Altering Cities. Here's How Some Are Responding; audience reach 55M
Yahoo News: North America Surge Arresters Market Set to Reach $593.6 Million by 2033: Growth Trends and Forecast Analysis Through 2025-2033; audience reach 47.1M
Yahoo News: Big companies bring their attention and wallets to geothermal project in Utah; audience reach 43.3M
AP News: Haven Energy Raises $40M to Build the Future of Distributed Power; audience reach 34.3M
AP News: City of Carson Recognized for Leadership in Energy Efficiency and Sustainability; audience reach 34.3M
Agenda Page 127
Our Instagram page had
1.1M views and reached
134.3k accounts, with
4.5k content
interactions, a 25.4%
increase
Added 366 new
followers
Best performing post:
Energy Team post on
Nov. 24 with 6.4k views,
24k accounts reached
and 75 content
interactions
Our LinkedIn page had
2,662 page views, and 934
unique visitors, with
857,943 impressions, a
259.5% increase
Added 584 new followers,
Best performing post:
Dec. 3 hiring post, which
had 398,635 impressions,
816 views and 337 link
clicks.
Our Facebook page had
1.6M views and 13.9k visits
- a 173.1k increase; our
page had 6.6k content
interactions, and 14.9k link
clicks
Added 52 followers, a
52.9% increase
Best performing post:
Nov. 24 Energy Team post,
which had 52k views,
reached 21k accounts and
had 118 content
interactions
Our X page averaged
1.4k impressions, with a
4.1% engagement rate
Lost 23 followers
Best performing post:
Nov. 27 Thanksgiving
post, which had 113
impressions and a 1.8%
engagement rate
Social Media Highlights
Please share CPA’s messages through your social media channels! Agenda Page 128
4 Website Performance
Top five visited webpages:
1. Homepage
2. Change is Electric
3. Programs
4. Commercial Leaders
5. EV SmartCharge
The CPA website had 97,490 page views during November and December. This timeframe had limited paid media campaigns driving traffic, alongside typical year-end seasonal fluctuations. Despite these factors , the website maintained steady engagement across program pages and strong baseline visibility, positioning CPA for increased traffic as new campaigns and initiatives resume.
Agenda Page 129
Research and strategy
Demand response survey
Purpose:
Assess customer awareness, perceptions, motivations, and barriers related to demand response programs to inform CPA’s future program design, outreach, and enrollment strategies.
High-level findings:
Awareness of CPA demand response programs is low,
especially among lower-income customers.
Financial incentives are the primary participation driver; sustainability is secondary.
Customers prioritize autonomy and are hesitant about device control by CPA.
Simple, manual energy-saving actions are preferred over complex or technical solutions.
Email is preferred for general communication; text is best for time-sensitive alerts.
Methodology: Online quantitative survey with over 450 CPA responders.
Program email matrices
Purpose:
A planning framework used to organize and manage email
communications by mapping who receives what message, when, and why. It helps teams align content, audience segments, timing, and goals in one clear view, ensuring emails are targeted, consistent, and strategically sequenced rather than sent ad hoc.
Programs
EV Smart Charge
Instant AC Savings
Power Response
Sun Storage Rebate
Energy Team
The demand response survey and the email matrix establish a strategic, data-driven foundation for stronger engagement, more effective communications, and sustained program performance.
Agenda Page 130
Management Report
To: Board of Directors
Subject: Management Report
Date: February 5, 2026
Local Solar and Battery Energy Storage Development Update CPA made significant progress in the first month of the year on its various local solar and battery energy storage projects, including:
• Completion of the first 15 installations of solar + battery systems on homes of low-income customers under CPA’s Solar + Battery Access program. Installations have been completed in Agoura Hills, Alhambra, Unincorporated Los Angeles County, Ojai, Oxnard, Paramount, Thousand Oaks, and Whittier. Approximately 100 more installations are projected in the next several months in over two dozen CPA communities.
• Two additional Power Share local solar projects constructed on the roofs of logistics facilities owned by Prologis reached commercial operation; Six local community solar projects are now online, with four more in advanced stages of construction.
• The California Public Utilities Commission ratified the Board’s December approval of four more Power Share projects, including the program’s first two projects in Ventura County.
• Enough equipment for the Power Ready project installations has been purchased to qualify those projects for tax credits that begin to sunset in July of this year.
Legislative Update
With the 2026 Legislative year underway, CPA expects to focus much of its initial energy on promoting three bills: one sponsored by CPA and up to two sponsored by the California CCA trade association, CalCCA. The CPA-sponsored bill will build on feedback and direction provided at the September 2025 Board Retreat and would provide CCAs authority to own and finance transmission. Transmission ownership would give CPA the Agenda Page 131
Board of Directors Management Report
opportunity to improve electricity bill affordability for all ratepayers over a long-term basis through the use of public sector financing tools.
CalCCA plans to sponsor a bill that would ensure CCAs and other ratepayer advocates have access to all data underlying the Power Charge Indifference Adjustment (PCIA) charge, or any other value derived from the charge. The calculation of the PCIA or related charges is not always accurate or without error. Statutory changes to require the CPUC and/or the IOUs to provide all data that was relied upon to calculate the costs of the PCIA will be proposed, allowing CCAs to more accurately forecast long-term costs and to support stable energy rates that are fair for all customers.
CalCCA may also pursue legislation that would allow transactions of Resource Adequacy to take place at a more granular level (e.g. hourly compared to the currently authorized monthly trading) in order to allow for greater levels of resource optimization that could reduce Resource Adequacy costs by tens of millions of dollars annually.
CalCCA Annual Conference
The trade association of Community Choice Aggregators, CalCCA, will be holding its 2026 Annual conference in Sacramento from late afternoon on May 12 through lunch on May 14. This conference will feature in-depth discussion on California’s electricity industry, CCAs’ evolving role in it, and celebrate the 10th Anniversary of the organization.
The Sacramento location is expected to give this year’s meeting a particular policy focus.
Please see the conference website and last year’s conference agenda for context. There will be a dinner especially for CCA Board Directors and other VIPs on the night of May 12 after the opening reception.
CPA is inviting Board Directors to attend the conference and will pay for conference registration, hotel, and travel expenses for one Director per member agency. If you plan to attend, please let Raynette Tom ([email protected]) know by March 1st.
CPA will also have a publicly posted location available in Sacramento on the sidelines of the conference for Board Directors to attend the May 14 CPA Board meeting.
Agenda Page 132
Board of Directors Management Report
Community Benefits Grant
CPA and Calpine Community Energy announced the 2026 group of awardees who will receive funding through the annual Community Benefits Grant Program. Twelve non-profit organizations across Los Angeles and Ventura counties will receive $289,000 in grants this year. Awardees include:
• API Forward Movement – Funds will go toward delivering a six-week, hands-on environmental justice leadership program for high school students from communities in the West San Gabriel Valley.
• California Green Business Network – Funds will support the expansion of the Green Business program in Ventura County, which helps small businesses in disadvantaged areas overcome barriers to clean energy adoption. • California Housing Partnership – Funds will be used to help modernize Public Housing Authority (PHA) Utility Allowances in Los Angeles and Ventura counties and remove financial disincentives to decarbonization.
• Climate Mental Health Network – Funds will be used to expand the Climate Emotions Toolkit and professional development for teachers in Los Angeles County.
• Community Environmental Council – Funds will be used to expand clean energy and heat resilience efforts through the Ventura County Heat Action Plan by delivering bilingual education, technical assistance and outreach to vulnerable Latino, Indigenous and low-income communities.
• Designing Resilience – Funds will be used to support expanding the Altadena Community Designing Resilience Initiative into a year-long program focused on education, engagement and resident-led planning in the fire-impacted area. • Food Education and Discovery – Funds will be used to support Food Ed’s Entrepreneur Program—a hands-on climate and sustainability education initiative serving Title I middle and high schools in the cities of Arcadia, Temple City, and Monrovia.
• Grades of Green – Funding will go to support the SOAR (Service, Ownership, Achievement, Respect) Eco-Innovation Virtual Academy which provides a Agenda Page 133
Board of Directors Management Report
monthlong virtual internship for 60–75 high school students to connect with clean energy and sustainability professionals.
• MERITO Foundation – Funding will support MERITO Foundation’s Energy & Climate Education, Skill Building & Green Workforce Development project for economically disadvantaged 7th–12th grade students from Title I schools. • Pando Populus – Funding will support a project-based learning initiative that takes sustainability ideas from Southland college and university classrooms and turns them into real-world projects.
• Reel Guppy Outdoors – Funding will be used to expand the Dockside Multimedia Learning and Research Center, a floating laboratory that provides Ventura County youth and families from underserved communities with hands-on environmental science, clean energy education and workforce development opportunities. • Ventura County Community Foundation – Funding will be used to strengthen the Environmental Workforce Collaborative, a regional partnership of five nonprofit organizations that builds environmental resilience, advances green workforce pathways and delivers hands-on education across Ventura County.
This year’s grant recipients are complemented by $50,000 in grants from the same pool of funds that CPA made in the immediate aftermath of the Eaton and Palisades fires to the Rotary Club of Altadena, the Boys and Girls Club of Malibu, the Topanga Coalition for Emergency Preparedness, and the Ventura County Community Foundation. For more information, see the CPA Press Release.
Monthly Financial Performance
CPA’s net position increased $16.6 million in November 2025, $12.7 million more than budgeted, and a reversal from the $11.0 million decrease in October 2025. Energy revenues were slightly below budget but energy costs were 15% below budget, largely due to lower-than-expected prices for market power and the non-utilization of contingencies. For the first five months of the fiscal year, CPA is ahead of budget by $45.7 million; this better-than-budgeted performance will likely be dissipate in the first half of 2026 as the impact of CPA’s February 1, 2026 rate decrease takes effect. The monthly financial dashboard for November is provided as Attachment 1.
Agenda Page 134
Board of Directors Management Report
Phase 7 Enrollment Activities
CPA began providing electricity service in La Cañada Flintridge, Lynwood, and Port Hueneme on October 1. Post-enrollment noticing is complete, customers have received several bills with CPA charges replacing SCE generation charges, and an automatic rate decrease was implemented in January to maintain Board-approved bill comparisons with SCE through July 2026.
As of January 25, 5.82% of eligible customers had opted out and 1.68% of eligible customers had chosen a different rate other than their city’s preferred energy option. Opt-actions (both rate changes and opt-outs) are above this average in La Cañada Flintridge and below this average in Lynwood and Port Hueneme. Residential opt-actions are higher than commercial opt-actions in all three cities.
Given that customer activity has generally reached steady-state, Phase 7 community statistics will be incorporated into the standard monthly Participation Rates by Member Agency report beginning in March.
Customer Participation Rate and Opt Actions
As of January 26, CPA’s overall participation rate was 92.8%, unchanged from the previous month. This figure excludes Phase 7 communities; their participation rates will begin to be reported and included in overall calculations in March 2026. CPA had 1,071,487 active customers as of January 26, up slightly from the end of December. Opt-outs through January 26 – 419 – were down from the 603 posted in December.
Participation rates and active accounts by member agency, excluding Phase 7 communities, are provided in Attachment 2.
Customer Service Center Performance
Incoming calls to CPA’s Customer Service Center were down in January, with 1,915 calls for though January 26, compared to 2,537 calls in December. Call center performance improved, with 90.8% of calls answered within 45 seconds in January, compared to
86.4% in December. Average call center wait time was 17 seconds, compared to 30 seconds in the previous month.
Contracts and Amendments Executed Under the CEO Authority Agenda Page 135
Board of Directors Management Report
A list of Long-Term energy transactions, letter agreements, amendments, and terminations executed under the CEO’s Delegated Authority in the previous 12 months is provided in Attachment 3 pursuant the Energy Risk Management Policy. A list of non-energy contracts executed under the CEO’s Signing Authority pursuant to CPA’s Non-Energy Contracting Policy is provided in Attachment 4. This list includes all open contracts as well as all contracts, open or completed, executed in the past 12 months.
ATTACHMENTS
1. November 2025 Financial Dashboard
2. Participation Rates by Member Agency
3. Long Term Energy transactions, Letter Agreements, Amendments, and Terminations under CEO’s Delegated Authority
4. Non-Energy Contracts Executed under CEO’s Signing Authority Agenda Page 136
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
November
2025
Financial Dashboard
Note: Numbers may not sum up due to rounding.
Active Accounts
1,069,463
Participation Rate
92.8%
YTD Sales Volume
4,776 GWh
November Volume
828 GWh
Res
47%
Com - Lg
22%
Com - Sm
29%
Agr/Oth
2%
In November 2025, CPA’s net position increased by $16.6 million, $12.7 million more than budgeted. Energy revenues were $93.5 million, $1.9 million (2%) lower than projected, and the cost of energy was $74.2 million, $13.2 million (15%) lower than budgeted, primarily due to lower than forecasted residential load and the non-utilization of energy contingencies.
Year to date, CPA’s net position increased by $21.7 million, $45.7 million higher than the budgeted decrease of $24.0 million. YTD revenues totaled $594.9 million, 3% less than budgeted, and YTD energy expenses were $558.8 million, 9% less than budgeted. Absent contingencies, energy costs YTD were $15.1 million (2.6%) below budget. YTD operating expenses totaled $24.1 million, 22% less than budgeted, mainly due to lower than projected spending on staffing, customer programs, and professional services expenses.
As of November 30th, 2025, CPA had unrestricted cash, cash equivalents, and current investments of $396.6 million, as well as $119.5 million available in its bank line of credit, representing 223 Days Liquidity on Hand. CPA is financially sound and in compliance with its bank and other credit covenants.
Agenda Page 137
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Agenda Page 138
Project or Resource Summary Month Notes
Drifter
Amendment to Energy Storage Agreement to extend the termination deadline while parties identify mutually beneficial solutions
January 2026
Cape Station 2
Letter agreement to extend the termination deadline for securing interconnection right while parties identify mutually beneficial solutions December 2025
Eaves 1
Amendment to Power Purchase Agreement to allow for additional payments of liquidated damages to extend the COD
November 2025
Eaves 3
Amendment to Power Purchase Agreement to allow for additional payments of liquidated damages to extend the COD
November 2025
Commerce 4
Amendment to Power Purchase Agreement to allow for additional payments of liquidated damages to extend the COD
November 2025
Southbay 20
Amendment to Power Purchase Agreement to allow for additional payments of liquidated damages to extend the COD
November 2025
Carson 1
Amendment to Power Purchase Agreement to allow for additional payments of liquidated damages to extend the COD
November 2025
Luna
Letter agreement to memorialize approval of an augmentation outage in the summer months, and compensation from Luna to CPA in acknowledgment of such summer outage approval
September 2025
Sunzia
Amendments to bifurcate North and South projects into two separate Power Purchase Agreements.
September 2025
Luna
Letter agreement to memorialize approval of an augmentation outage in the summer months, and compensation from Luna to CPA in acknowledgment of such summer outage approval
June 2025
Sunzia Letter agreement to establish process to bifurcate North and South projects June 2025 Sunzia
Amendment to allow Sunzia the option to operate each turbine in the South Wind project area at a nameplate capacity of 3.8MW vs the originally contemplated 3.6MW
May 2025
Sunzia
Letter Agreement extending the negotiating period to address Slice of Day language in existing contract
May 2025
Cape Station 30 MW
and 18 MW
Letter Agreement to the Power Purchase Agreements to update insurance requirements. The Letter Agreement applies to both the 30 MW and incremental 18 MW Cape Station agreements.
April 2025
Rexford
Amendment to the Power Purchase Agreement to update the Ultimate Parent definition after a Change in Control
February 2025
Previous 12 Months
Long-Term Energy Contract Transactions, Administrative Amendments, Letter Agreements and Terminations Executed Under Chief Executive Officer's Authority
Agenda Page 139
Vendor Purpose Month NTE Amount Status Notes
Coro California, Inc. Staff Workshop Facilitator Jan-26 $6,750 Active Electric & Gas Industries Association
Incentive management services for the
residential battery storage incentive
program
Jan-26 $91,000 Active
MG Advisory Corp
Municipal Financial Advisor for Prepay
Transactions Jan-26 $250,000 Active
Meltwater News US Inc. Media coverage subscription Jan-26 $27,770 Active Ironclad, Inc. Contract Management Software Jan-26 $94,906 Active NewGen Strategies & Solutions, LLC
Cost-of-Service and Rate Setting
consulting services Dec-25 $40,000 Active
Pinnacle Advocacy LLC Lobbying services for Government Affairs Dec-25 $78,652 Active Omni Government Relations Lobbying services for Government Affairs Dec-25 $106,492 Active Language Line Services, Inc.
Translation services for Marketing &
Communications
Dec-25 $70,000 Active
Grand Tower LLC Storage Space Lease Dec-25 $12,000 Active DERNet Soft, Inc. Customer Engagement Reporting Tool Nov-25 $60,000 Active ParcelQuest Parcel data web service Nov-25 $12,500 Active Mercer LLC Performance Management Re-design Nov-25 $75,000 Active Green Translations
Translation services for Marketing &
Communications
Nov-25 $30,000 Active
Salesforce Tableau licenses Nov-25 $4,651 Active
Chapman & Cutler Legal services for prepay transactions Oct-25 $175,000 Active Adam Investigations Legal services Oct-25 $50,000 Active GDS Associates
Technical support for long-term energy
contracts
Oct-25 $95,000 Active
Julia Valler, Inc. Event staffing for LA Car Show Oct-25 $24,948 Active Alter Agents, Inc. Marketing research services Sep-25 $249,800 Active Pinnacle AV Services A/V maintenance service plan Sep-25 $25,849 Active SAESHE, Inc.
Amendment to PSA for Street teams
support services
Sep-25 $55,000 Active
First Principles Advisory
Integrated Resources Plan technical
consulting
Sep-25 $75,000 Active
Mercer LLC 2025 Retirement/Benefits Review Aug-25 $73,000 Active Dillon Consulting Auditor for the Climate Registry Jul-25 $26,400 Active MRW Associates Subscription to rate forecasting products Jul-25 $9,600 Active LinkedIn LinkedIn Learning Subscription Jul-25 $16,660 Active Meltwater Media coverage subscription Jul-25 $27,770 Active Baker Tilly Financial audit services Jul-25 $62,000 Active Snowflake AWS data subscription Jul-25 $100,000 Active
Workable
Applicant Management Platform
Subscription Jul-25 $17,496 Active
Smartsheet, Inc. Project management platform Jul-25 $2,436 Active Hootsuite, Inc. Social media boosting tool Jun-25 $18,799 Active Air Fresh Marketing LLC Street teams support services Jun-25 $20,000 Active Lattice HR management platform subscription Jun-25 $35,067 Active Getty Images Subscription for image assets Jun-25 $8,620 Active EGIA
Incentive management services renewal
term
May-25 $92,510 Active
Spirit Media Videography services for CPA teaser video May-25 $97,375 Active Trinity Consultants
Third-party verification services for 2024
EPE emissions data report
May-25 $24,000 Active
BRB Law Legal services, regulatory May-25 $50,000 Active Raimi & Associates
End date extension only for Inglewood Oil
Field energy storage feasibility study
May-25 $0 Active End date extension only
EPRI Research Participation Agreement Apr-25 $54,000 Active USGBC California
Workforce development grant for wildfire
recovery resources
Apr-25 $50,000 Active
IFUS ICE Futures Platform access Apr-25 $0 Active
Non-Energy Contracts Executed Under Chief Executive Officer Authority Rolling 12 months.
Agenda Page 140
Redhill Group Customer Research Services Apr-25 $34,589 Active LinkedIn Recruiting Platform Subscription Feb-25 $10,250 Active Raimi & Associates
Inglewood Oil Field energy storage
feasibility study Feb-25 $118,713 Active
Abbot, Stringham & Lynch Green-e Energy Program reporting Feb-25 $24,000 Active Agenda Page 141