MINUTES
Finance Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, February 25, 2026
11:00 a.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:
Camarillo City Hall
Administrative Conference Room
601 Carmen Drive
Camarillo, CA 93010
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91302
Claremont City Hall
Council Office
207 Harvard Avenue
Claremont, CA 91711
Rolling Hills Estates City Hall
Conference Room
4045 Palos Verdes Drive North
Rolling Hills Estates, CA 90274
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
CALL TO ORDER & ROLL CALL
Chair Santangelo called the meeting to order at 11:00 a.m. and Annie Mendoza, Deputy Clerk of the Board, conducted roll call. Director Newman attended this meeting pursuant to Section 54953 (c) of the Government Code.
ROLL CALL
Camarillo Susan Santangelo Committee Chair Remote
Calabasas Ed Albrecht Committee Member Remote
Carson Reata Kulcsar Committee Member Remote
Claremont Corey Calaycay Committee Member Remote
Rolling Hills Estates Steve Zuckerman Committee Member Remote Santa Monica Pam O’Connor Committee Member Present
Thousand Oaks David Newman Committee Member Present
All votes are unanimous, unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the January 28, 2026, Finance Committee Meeting
2. Receive and File January 2026 Risk Management Team Report
3. Receive and File January 2026 Investment Report
4. Receive and File FY 2025-26 Q2 Financial Report
Motion: Committee Member O’Connor, Santa Monica
Second: Committee Member Kulcsar, Carson
Vote: The consent agenda was approved by a roll call vote.
REGULAR AGENDA
5. Oral Report from the Chief Financial Officer
David McNeil, Chief Financial Officer, reported that CPA’s sixth pre-pay transaction was priced last week in a less favorable interest rate environment than experienced in the past, but CPA will still benefit from expected savings.
6. Receive Presentation on FY 2025-26 Financial Performance and Outlook Mr. McNeil reported that CPA has made significant progress toward meeting its 50% reserve target and is in sound financial health. CPA’s projected financial results reflect lower energy costs that will be offset by lower revenues resulting from the rate reduction approved by the Board in February 2026. As CPA achieves its 50% reserve target it can shift gears and focus on reserve maintenance rather than reserve growth. CPA is well positioned to manage continued competitive pressure over the coming years.
Committee Member Albrecht congratulated staff for creating financial stability through careful modeling and cost management. Committee Member Newman asked how CPA would respond if volatility returned to the energy market or if there were changes in the economy in general. Mr. McNeil responded that staff conduct scenario modeling using data from historical volatility and prepare for worst-case scenarios. He added that CPA’s “A” credit rating is a good indicator of CPA’s ability to manage volatility.
Staff clarified for Committee Member Calaycay that CPA has no debt to refinance, but that interest rates impact interest income.
7. Recommend to the Board of Directors Approval of: (a) Proposed Amendments to the Financial Reserve Policy as Presented in Attachment 3 to the Staff Report; and (b) Proposed Amendments to the Fiscal Stabilization Fund Policy as Presented in Attachment 5 to the Staff Report
Kate Freeman, Senior Manager of Strategic Finance, stated that staff proposes increasing the DLOH target from 120 days to a range of 150 to 240 days in the Reserve Policy. The proposed DLOH range better aligns with the existing reserve target range of 30% to 50% of operating expenses. Staff also aim to clarify the method of reserve measurement and reserve targeting during the annual budgeting and rate setting processes and related clarifications and adjustments.
As for the Fiscal Stabilization Fund, staff proposes increasing the maximum FSF balance from 10% of annual revenues to 20% and authorize the CEO to defer revenue into the FSF in instances in which the Net Position would increase in the absence of a transfer, provided that the transfer does not result in a reduction of the Net Position. The current CEO authority is limited to transfers in instances in which the contribution to the Net Position exceeds 4% of revenues in the absence of a transfer. Increasing the FSF balance improves CPA’s ability to use FSF balances to manage downside events, including expected competitive pressure on CPA’s rates.
Committee Member Kulcsar expressed support for the recommendations but asked for clarification regarding funding for community programs. Staff stated that the allocation of reserves to the FSF would not affect funding for community programs.
Motion: Committee Member Newman, Thousand Oaks
Second: Committee Member Zuckerman, Rolling Hills Estates Vote: Item 7 was approved by a roll call vote.
8. Recommend that the Board of Directors Approve an Amended Credit Agreement and Amended Fee Agreement with J. P. Morgan Consistent with the Terms Presented on Slide 5 of the Presentation
Ms. Freeman provided historical information on CPA’s credit agreement with J.P.
Morgan and described the proposed amendments. The draft Credit and Fee Agreement amendments would maintain CPA’s access to borrowings and letters of credit, support CPA’s liquidity, and provide avenues for CPA to satisfy various contractual and regulatory obligations, including its Financial Security Requirement (FSR) as obligated by the CPUC. If the Committee approves the recommendations, staff will present a resolution and proposed amendments to the Board at its March meeting.
Committee Member Albrecht inquired about the cooperative negotiations and working relationship with J.P. Morgan. Staff confirmed the bank has been a constructive and engaged credit partner for CPA.
Motion: Committee Member Calaycay, Claremont
Second: Committee Member Albrecht, Calabasas
Vote: Item 8 was approved by a roll call vote.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Chair Santangelo adjourned the meeting at 11:54 a.m.