Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, March 19, 2026
1:30 p.m.
Visit CPA’s YouTube Channel to view a Live Stream of the Meeting www.youtube.com/@CPApublicmeetings
*There may be a streaming delay of up to 90 seconds. This is a view-only live stream.
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting remotely at the following locations:
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
Ventura County Government Center
CEO Point Mugu Room
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
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 West 126th Street
Hawthorne, CA 90250
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Santa Paula City Hall
Councilmember Office
970 East Ventura Street
Santa Paula, CA 93060
Beverly Hills City Hall
Council Office, 4th Floor
455 North Rexford Drive
Beverly Hills, CA 90210
The Westin Pasadena
191 North Los Robles Avenue
Pasadena, CA 91101
PUBLIC COMMENT: Members of the public may submit their comments by one of the following options:
• Email Public Comment: Members of the public are encouraged to submit written comments on any agenda item to [email protected] up to four hours before the meeting. Written public comments will be announced at the meeting and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting. • Provide Public Comment During the Meeting: The General Public Comment item is reserved for persons wishing to address the Committee on any Clean Power Alliance-related matters not on Agenda Page 1
today’s agenda. Public comments on matters on today’s Consent Agenda and Regular Agenda shall be heard at the time the matter is called. Comments on items on the Consent Agenda are consolidated into one public comment period. Members of the public who wish to address the Committee at CPA’s Office are requested to complete a comment card and provide it to staff. If you are attending from a remote location, please identify yourself to a CPA representative when your item is called. Each speaker is limited to two (2) minutes (in whole-minute increments) per agenda item with a cumulative total of five 5 minutes to be allocated between the General Public Comment, the entire Consent Agenda, or individual items in the Regular Agenda. Please refer to Policy No. 8 – Public Comment for additional information.
NAVIGATING OUR AGENDA PACKETS
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ACCESSIBILITY: Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least two (2) working days before the meeting at [email protected] or (213) 713- 5995. Notification in advance of the meeting, while not required, will enable us to make reasonable arrangements to ensure accessibility to this meeting and the materials related to it.
CALL TO ORDER AND ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from February 19, 2026, Executive Committee Meeting
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
3. Review Draft Agenda for the April 2, 2026, Board of Directors Meeting
4. Recommend that the Board of Directors Direct Staff at its April 2 Meeting to Prepare a Budget Policy and Annual Budgets for Fiscal Years 2026-27 and 2027-28
5. Receive Presentation on the Proposed Power Ready Round 2 Ownership Delivery Approach and Provide Feedback on the Ownership Delivery Structure and whether Staff Should Proceed with the Necessary Activities Associated with Pursuing Ownership
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT REGULAR MEETING ON APRIL 16, 2026
Public Records: Public records that relate to any item on the open session agenda for a Committee Meeting are available for public inspection. Those records that are distributed less than 72 hours prior to the meeting are available for public inspection at the same time they are distributed to all, or a majority of, the members of the Committee. Public records are available for inspection at CPA’s Office at 801 S. Grand Ave., Suite 400, Los Angeles, CA 90017, or online at www.cleanpoweralliance.org/agendas.
Agenda Page 2
Staff Report – Agenda Item 1
To: Executive Committee
Subject: Approve Minutes from the February 19, 2026, Executive Committee Meeting
Date: March 19, 2026
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
Executive Committee Item 1
MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
February 19, 2026
1:30 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:
Beverly Hills City Hall
Council Office, 4th Floor
455 N. Rexford Drive
Beverly Hills, 90210
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
Camarillo City Hall
Council Office
601 Carmen Drive
Camarillo, CA 93010
Hawthorne City Hall
Administrative Office
4455 W. 126th Street
Hawthorne, CA 90250
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Santa Paula City Hall
Councilmember Office
970 E. Ventura Street
Santa Paula, CA 93060
Ventura County Government Center
CEO Point Mugu Room
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
Alhambra City Hall
Conference Room
111 S. First St.
Alhambra, CA 91801
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Holiday Inn Express & Suites
15586 County Road B
Hayward, WI 54843
CALL TO ORDER & ROLL CALL
Chair Klein Lopez called the meeting to order at 1:30 p.m. and Gabriela Monzon, Clerk of the Board, conducted roll call.
Roll Call
Agoura Hills Deborah Klein Lopez Chair Remote
Alhambra Jeff Maloney Committee Member Absent
Beverly Hills Julian Gold Immediate Past Chair Remote
Camarillo Susan Santangelo Committee Member Absent
Agenda Page 4
Executive Committee Item 1
Carson Cedric Hicks Committee Member Remote
Hawthorne Alex Monteiro Committee Member Remote
Los Angeles County Lindsey Horvath Vice Chair Remote
Santa Paula Jenny Crosswhite Committee Member Remote
Sierra Madre Robert Parkhurst Committee Member Remote
Ventura County Vianey Lopez Vice Chair Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the January 15, 2026, Executive Committee Meeting Motion: Committee Member Hicks, Carson
Second: Vice Chair Horvath, Los Angeles County
Vote: The consent agenda was approved by a roll call vote.
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
Ted Bardacke, Chief Executive Officer, thanked Committee members for their commitment to the upcoming Lobby Day and provided details about the activities.
Mr. Bardacke noted that there will be ribbon-cutting ceremony in Carson for a community rooftop solar project and announced September 18 as the date for this year’s annual Board Retreat.
3. Review Draft Agenda for the March 5, 2026, Board of Directors Meeting Mr. Bardacke described items proposed for the consent agenda and the regular agenda, including amendments to CPA’s Reserves and Fiscal Stabilization Fund policies, the TOU-Smart Pilot, the Contract Pricing program, and the nomination period for a new Board Chair.
Mr. Bardacke clarified for Committee Member Parkhurst that future CPA employees would be in the Social Security system, and that the retirement option is a one-time individual choice for current employees. Vice Chair Horvath asked about the Fiscal Stabilization Fund, and staff responded that the proposal is to increase the maximum balance of the fund from 10% of annual revenues to 20% but not to target a particular amount in the FSF at any one time.
4. Receive Presentation on TOU-Smart Pilot and Provide Feedback and Recommendation to the Board of Directors
Karen Schmidt, Senior Director of Rates and Strategy, described staff’s proposal for a default TOU-SMART pilot to test the impact of lower daytime electricity rates on customer behavior and CPA energy costs. The proposed pilot will help CPA better understand how price signals, customer education, and messaging can influence beneficial load shifting behavior among customers with high levels of electrification and/or electric vehicles. The pilot would default between 4,200 and Agenda Page 5
Executive Committee Item 1
6,300 customers into TOU-SMART for two years. Customers who defaulted to TOU-SMART would be able to switch back to TOU-D-PRIME at any time and would receive bill protection for the duration of the pilot. Ms. Schmidt stated that the updated pilot proposal incorporates Board suggestions from its September meeting. If the Executive Committee recommends the pilot move forward, staff would present it to the full Board at its March meeting. Staff requested feedback and a consensus on one of the options presented.
Chair Klein Lopez encouraged staff to emphasize that the program provides zero-cost energy, rather than emphasizing cost savings; suggested that for the Board presentation, staff should include hypothetical customer profiles. Committee Member Gold inquired about revenue neutrality. Staff responded that when customers shift energy use to daytime, it can reduce procurement costs while offering net revenue neutrality. Chair Klein Lopez clarified that customers not benefitting from the program will be disenrolled and receive bill protection.
Staff clarified for Committee Member Parkhurst that the pilot will allow CPA’s customers to take advantage of solar energy that will lower both their and CPA’s costs. The pilot is the first of its kind in the U.S.; Dr. Delmas from UCLA will be involved in the analysis of large data sets as it relates to behavioral and psychological impacts and ensuring the pilot design reflects the highest peer review standards. Committee Member Crosswhite inquired further about scenarios in which customers who are not benefitting from the program would be disenrolled and be made whole; asked when and how messaging will be measured for efficiency. Staff clarified that they would compare customer energy usage before the pilot to set a baseline. Bill protection would apply to the difference, if any, between the TOU-SMART and TOU-PRIME rates, based on a customer’s usage.
Bill protections would not apply to higher usage for other reasons. Regarding messaging, it makes sense to keep the messaging in place for the entire testing timeframe as some outreach takes time to impact and analyze customer behavior.
Customers would need to experience significant bill increases at about 20-30% to be disenrolled from the pilot after year 1.
Vice Chair Horvath expressed support for the UCLA partnership; inquired about communications with the CPUC and the news media regarding the program; suggested the newsletter of independent columnist Sammy Roth. Staff noted marketing will begin at the launch of the program. CPA will share program data with the CPUC at the completion of the pilot. Committee Member Monteiro commented on SCE’s commercial rates and its three-tier system. Chair Klein Lopez suggested staff prepare Board talking points about SCE’s commercial rates.
Committee Member Hicks stated support for the pilot and suggested consideration of the one-cent option. Committee Member Gold noted support of the program and that CPA should aim to collect as much data possible for UCLA researchers.
Motion: Chair Klein Lopez, Agoura Hills
Second: Committee Member Hicks, Carson
Vote: Item 4 was approved by a roll call vote.
Agenda Page 6
Executive Committee Item 1
5. Receive Presentation and provide Feedback on a Potential Contract Pricing Program
Matt Langer, Chief Operating Officer, explained that CPA faces increasing opt-out risk from commercial customers seeking to enroll in Direct Access (DA), which allows non-residential customers to purchase electricity from Energy Service Providers (ESPs) instead of a local utility. In 2026, CPA could lose up to 2,000 customer accounts, as large commercial customers seek higher levels of renewable energy at predictable or fixed rates for terms of 3 to 10 years. Some commercial customers would like to pursue sustainability goals through Virtual PPAs. DA contracts are typically customized based on load profile, allowing flexibility in pricing, risk tolerance, and energy mix. Customers can switch among ESPs or migrate back to a CCA or IOU after their contracts expire.
To address these trends, staff is exploring a contract pricing program to retain and attract customers while ensuring financial viability. Mr. Langer provided background information on DAs and outlined program parameters, such as eligibility, contract term, and rate product. There are three rate options under consideration: Fixed Rate, Fixed Comparison with SCE Base for the entire term, and Annual Rate Escalation with Total Bill Comparison Collar. Mr. Langer requested Committee feedback; if the Committee supports development of the program, staff will present a refined framework to the Board at its March meeting.
He noted that CPA is currently in discussions with a large load customer may be interested in participating in the program.
Committee Member Parkhurst asked about managing delivery rates, since CPA generally does not control those; requested clarification on virtual PPAs. Mr.
Langer explained that CPA will rely on rate forecasts; volatility related to delivery rates or PCIA would resolve during the long contract period. Additionally, customers bringing their own power under a Virtual PPA would require individualized handling as to the energy assets. In response to Committee Member Parkhurst’s comment about 100% Green Power, staff noted that it also needs to consider customers who, due to budgeting constraints, would like to incrementally reach the 100% Green Power product content. Committee Member Ordower expressed support for the proposal and asked if CPA staff could launch more than one rate option to initiate the program and asked about customer incentives. Mr.
Langer responded that staff wants to have as many ‘tools in the toolbox’ as possible to offer something attractive to the customer. Staff expects to work with a handful of customers to begin with and has regular contact with prospective customers to assess needs. Committee Member Gold asked if the proposed margin could be adjusted as needed. Mr. Langer stated that the financial modeling considers CPA’s margins over the next five years, but that margins could be adjusted as needed. Staff will take this question into consideration as the proposal is developed. Committee Member Hicks asked about targeted customers, and staff stated they would focus on current CPA customers who have received a spot in the DA lottery. The Committee expressed consensus support for moving forward with staff's further development of the program.
COMMITTEE MEMBER COMMENTS
None
ADJOURN
Chair Klein Lopez adjourned the meeting at 3:22 p.m.
Agenda Page 7
Staff Report – Agenda Item 2
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Oral Update from the CEO on CPA Operations
Date: March 19, 2026
The CEO will provide an oral update on CPA operations.
Agenda Page 8
Staff Report – Agenda Item 3
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Review Draft Agenda for the April 2, 2026, Board of Directors Meeting
Date: March 19, 2026
Staff will provide an overview of the proposed agenda items for the April 2, 2026 Board of Directors meeting for review and feedback from the Executive Committee. The draft Board agenda is attached to this staff report. Information on the main items for Board consideration is provided below.
CONSENT AGENDA
The following items are recommended for inclusion on the Consent Agenda of the April Board meeting.
CalCCA Special Assessment for SCE ERRA Review and Forecast Applications Each year CPA engages in SCE’s Energy Resource Recovery Account (ERRA) Review and Forecast applications to the CPUC. These applications are where the Power Charge Indifference Adjustment (PCIA) and SCE generation rates are set and validated. Since 2023, CPA has shared the costs of engaging in SCE’s ERRA applications with the other four CCAs in SCE territory: Central Coast Community Energy, California Choice Energy Authority, Desert Community Energy, and Orange County Power Authority. CalCCA facilitates the cost sharing arrangement by managing the invoices and funding disbursements for these contracts on behalf of the CCAs, with close consultation of CPA staff. This arrangement is implemented through a Special Assessment between CalCCA and each CCA that dictates the proportional share of the total cost funded by each CCA.
Agenda Page 9
Executive Committee Item 3
ERRA cases at the CPUC can take several years to reach a final conclusion. Therefore, multiple Special Assessments covering multiple active ERRA cases can exist at the same time, causing administrative challenges. For example, in 2025, the Special Assessment for 2022 ERRA Review was still active at the same time as the Special Assessment for 2024 ERRA Review and 2026 ERRA Forecast was assessed. This year, CalCCA has proposed to simplify accounting and tracking by combining all of the ERRA Review and Forecast applications into one Special Assessment and begin transitioning from one-year to two-year Special Assessments. Therefore, the Board will be asked to approve a two-year Special Assessment from CalCCA for $577,500, made up of $316,140 for 2026 and $261,360 for 2027, comparable to the approved 2025 Special Assessments totaling $268,800. These amounts are split amongst outside counsel, Keyes and Fox and consultant, NewGen Strategies as shown in the table below.
2025 (for
reference)
2026 2027
Keyes and Fox $160,000 $191,400 $138,600
NewGen Strategies $108,800 $124,740 $122,760
Total $268,800 $316,140 $261,140
Keyes & Fox and NewGen Strategies are continuing as CalCCA’s vendors because their engagement in the ERRA proceeding has resulted in significant savings to CPA.
REGULAR AGENDA
The following items are recommended for inclusion on the Regular Agenda of the April Board meeting.
Election of Board Chair
At the March 5th Board of Directors meeting, Chair Klein Lopez opened the nomination period for the Board Chair position to serve a full two-year term from July 2026 - June 2028. Nominations were accepted through Friday, March 13th. The following nomination was received at the meeting:
Agenda Page 10
Executive Committee Item 3
1. Robert Parkhurst, City of Sierra Madre
As of March 13th, no other nominations have been received. The Clerk of the Board verified that the nominee meets the eligibility criteria set forth in CPA’s bylaws. The election will take place at the April 2 Board meeting.
CPA will then complete the composition of Board leadership according to the following schedule:
April 2: Election of Board Chair
By April 20: Board Chair selects Committee Chairs
May 7 – May 15: At-Large Executive Committee Nomination Period (3 positions) June 4: Election of At-Large Executive Committee Members July 2: Board Chair, Committee Chairs, Executive Committee At-Large Members begin new terms
Power Ready Ownership
This item will be subject to a separate presentation to the Executive Committee.
Power Purchase Agreements
Staff is in the process of negotiating three long-term contracts from the 2025 Clean Energy and Reliability RFO, approved for shortlist by the Energy Committee. Should any of the negotiations be successful, the contracts will be presented to the Board for consideration.
Two-Year Budget Proposal
This item will be subject to a separate presentation to the Executive Committee.
Rates Outlook
Staff will provide an informational presentation on the considerations that will inform the rate setting approach and options for Fiscal Year (FY) 2026-2027 that staff will bring to Agenda Page 11
Executive Committee Item 3
the Board in May. Based on the rate setting approach approved by the Board in May, staff will bring final FY 2026-2027 rates to the Board for adoption in June, along with adoption of the FY 2026-2027 budget. The new rates would go into effect July 1, 2026.
Key considerations for this year’s rate setting approach include:
1. Product price differentials
• The price spread between CPA’s three rate products is largely dependent on the amount of renewable energy (RE) in each product and forecasted RE prices.
• Based on the current cost of service forecast, staff expects that the spread between Lean, Clean and 100% Green Power will remain the same or slightly increase in FY 2026-2027.
2. Competitiveness
• In June 2025 the Board set FY 2025-2026 rates such that for most customers Lean Power was at a 2% total bill discount to SCE, Clean Power was at parity with SCE, and 100% Green Power was at a 6% premium to SCE.
• SCE’s generation rate decrease and PCIA rate increase in January 2026 increased customer bills and worsened CPA’s competitive position. Relying on CPA’s strong financial position, the Board was able to adopt an interim rate reduction effective February 1, 2026, to offset the customer bill impacts and return total bill comparisons close to July 2025 levels. For most customers, Lean is now at a 0.7% discount for Lean Clean is at a 1.3% premium, and 100% Green is at a 7.3% premium.
• Staff anticipate that SCE’s January 2027 rate changes and new PCIA may again put significant competitive pressure on CPA rates, potentially driving consideration of another interim rate adjustment in February or March.
3. Financial goals and reserve policy
• Staff are currently forecasting that CPA will end FY 2025-2026 with reserves exceeding the Board’s maximum target of 50% of operating expenses.
Agenda Page 12
Executive Committee Item 3
• Generally, staff would recommend taking action to reduce reserves back to the 50% level by reducing rates and/or increasing program spending and making up for lower revenues by using the Fiscal Stabilization Fund (FSF). • The options presented to the Executive Committee in April and the Board in May will likely revolve around two criteria:
i. How much FSF should be used to reduce reserves back to the 50% maximum target and the resulting impacts on customer bills and competitiveness levels.
ii. How much the FSF should be relied upon beginning in July to reduce rates from their current levels vs. minimizing upfront use of the FSF and deferring a decision on how to address the remaining reserve exceedance until January or February when the impacts of SCE’s 2027 rates and the PCIA are known.
ATTACHMENT
1. Draft April 2, 2026, Board of Directors Agenda
Agenda Page 13
Executive Committee Item 3
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, April 2, 2026
2:00 p.m.
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from March 5, 2025, Board of Directors Meeting
2. Approve CalCCA Special Assessment
3. Receive and File Bill Positions Monthly Report
4. Receive and File Monthly Community Advisory Committee Report
REGULAR AGENDA
Election Item
5. Election of CPA Board Chair to Serve July 2026 – June 2028 Term Action Items
6. Power Ready Ownership
7. PPAs/ESAs
8. 2-Year Budget Proposal
Information Item
9. Rates Outlook
COMMITTEE CHAIR UPDATES
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT MEETING ON MAY 7, 2026
Agenda Page 14
Staff Report – Agenda Item 4
To: Executive Committee
From: Jennifer Stevenson, Financial Planning & Analysis Manager Reviewed by: David McNeil, Chief Financial Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Two-Year Budget Cycle Proposal
Date: March 19, 2026
RECOMMENDATION
Recommend that the Board of Directors direct staff at its April 2 meeting to prepare a Budget Policy and annual budgets for fiscal years 2026-27 and 2027-28.
ATTACHMENT
1. Two-Year Budget Cycle Proposal Presentation
Agenda Page 15
Two-year Budget Cycle Proposal
Executive Committee
March 19, 2026
Agenda Page 16
Recommend that the Board of Directors direct staff at it’s April 2nd Board meeting to prepare a Budget Policy and annual budgets for fiscal years 2026-27 and 2027-28. 2 Recommendation
Agenda Page 17
As CPA's business has matured with increasingly predictable multi-year planning, our annual budget structure presents opportunities for streamlining and improvement Projects are increasingly spanning multiple fiscal years, and business decisions can be constrained by line-item allocations despite the existence of overall operating expense budget capacity
Staff propose a two-year budget cycle, wherein the Board would approve two consecutive fiscal year budgets simultaneously, with authorization for staff to make some types of operating expense transfers subject to five specific defined constraints Under this proposal, the Board would be presented a budget amendment for the second year of the two-year cycle to update revenue, cost of energy and contribution to the net position in line with the annual rate setting process The Finance Committee unanimously recommended moving to a two-year budget cycle at its January 28, 2026 meeting
3 Summary
Agenda Page 18
Fiscal Year Constraints
• Projects – particularly involving data and systems, customer programs and marketing – often span fiscal years and implementation timelines can shift based on external factors, resulting in unspent funds being re-budgeted in subsequent years
Process
• The annual budget cycle takes 6 months each year, and is time intensive for Board members and Staff • As CPA’s business has matured, multi-year planning for many expense items has become more predictable
Operational Flexibility
• Budgets line items cannot be flexibly reallocated when business priorities evolve without amendments to the budget
• Business initiatives may be delayed due to budget line-item constraints, despite CPA having overall operational expense (OpEx) budget capacity
4 Context: Current Budget Environment
Two-year budget processes are commonly used in the public sector. Approximately one-third of CPA’s member communities currently use two-year budget processes including Agoura Hills, Alhambra, Claremont, Hawaiian Gardens, Lynwood, Monrovia, Moorpark, Port Hueneme, Santa Monica, Santa Paula, Thousand Oaks, and West Hollywood.
Agenda Page 19
Proposal: Adopt a 2-year budget cycle
To address operating constraints and improve organizational efficiency, staff propose the adoption of a 2-year budget cycle:
Beginning in the spring of 2026, and every two years thereafter, staff would present the Board with the next two consecutive fiscal year budgets simultaneously for approval.
The budget approvals would include authorization for staff to make the following budget transfers when reasonable and necessary to support the timely operations of CPA:
• Move budgeted line amounts between the two fiscal year budgets • Move budget amounts between OpEx lines (with limitations on Staffing and Programs budgets) Transfers would be subject to the controls and accountability conditions described in slides 6 and 7.
As part of the FY2 (e.g. second year) annual rate setting process, staff would propose that the Board amend and update FY2 budgeted revenue and cost of energy line items.
Agenda Page 20
5 Controls for inter-budget line-item transfers:
Control 1: An annual maximum transfer between OpEx lines is limited to the greater of $250K or 10% of transfer-out line’s budget
Example: Mailers with a budget of $1.4M could transfer out up to $250K Programs with a budget of $14.4M could transfer out up to $1.4M Control 2: Customer Programs budget line-item transfers out can only come from funds budgeted for program implementation and must be for expenses that further Customer Program’s projects Example: 9 months into the fiscal year the Customer Program’s team discovers that a particular neighborhood is not subscribing to a program that would benefit them because they speak a language other than the ones provided in CPA’s current translations. Programs would like to translate some informational documents into this language and mail these to that neighborhood. This campaign was not anticipated and therefore was not included in the Communications and Mailers budgets. Programs could transfer implementation budget to those budget lines to facilitate this action, rather than waiting 3 months for a new budget cycle.
Control 3: Any OpEx line budget transfers must be approved by the cost center manager and CFO 6 Controls and accountability for transfers
Agenda Page 21
Control for all transfers:
Control 4: Staffing budget line item shall not be increased by transfers, to avoid committing the Board to ongoing future expenses.
Control for inter-year transfers:
Control 5: Any movement in budget from FY2 to FY1 would require CFO approval that is grounded in a reduction in FY2’s spending plan.
Example: A new software was projected to be implemented in FY2 however the procurement went faster than expected and CPA is ready to implement in FY1 Q4. A request could be submitted to the CFO to reduce the FY2 budget and move some implementation budget into FY1, thereby avoiding a project delay.
Examples of inter-year transfers are included on Appendix slide 15.
Reporting:
Inter- budget line item and inter-year budget transfers will be reported in the Quarterly Financial Reports presented to the Finance Committee and the Board. 7 Controls and accountability (cont…)
Agenda Page 22
Better align budget timeline with CPA’s long-term strategy Example: Data & Systems Roadmap, Multi-year commitments for Programs (ex. Energized Communities) Provides the Board financial insight into longer term planning Increase agility to adapt to changes in project timelines Addresses concerns regarding approving the same expenses in multiple fiscal years due to project delays Increased efficiency
Preparing and reviewing two budgets at the same time will free up time and resources for the Board and Staff in FY2 without compromising fiscal discipline and oversight
Resource optimization
Use budget where and when needed to enable business decisions Enhanced engagement with the Board:
• No reduction in FY1 Budget Process (no change)
• Monthly Dashboard (no change)
• Quarterly Financial Report (no change) will include budget transfer reporting (new) • Present a budget status review at FY1 May Finance Committee meeting in anticipation of FY2 (new) • Present the annual outlook for the FY2 operating expense budget year to Finance Committee and the Board in the fall of FY2 (new) • Annual budget process activities for each fiscal year are detailed on Appendix slides 13 and 14 8 Opportunities with a 2-year budget cycle
Agenda Page 23
Next Steps in the Budget Process
9 January – April 2026 (Staff) – Goal Setting, Departmental Budgeting, Rate Design Planning, Energy Cost Projections & Consolidated Budget Planning
April 2, 2026 (Board) - 2-year Budget Cycle Proposal
April 16, 2026 (Executive Committee) – Budget Priorities April 22, 2026 (Finance Committee) – Budget Priorities and Draft FY2026-27 & FY2027-28 OpEx budgets May 7, 2026 (Board) – Budget Priorities
May 21, 2026 (Community Advisory Committee) – Draft Budgets, Budget Priorities, and 2-year Budget Cycle Proposal
May 21, 2026 (Executive Committee) – Draft FY2026-27 & FY2027-28 Budgets and Draft Budget Policy May 27, 2026 (Finance Committee) – Proposed FY2026-27 & FY2027-28 Budgets and Draft Budget Policy June 4, 2026 (Board) – Proposed FY2026-27 & FY2027-28 Budgets and Proposed Budget Policy Agenda Page 24
Recommend that the Board of Directors at it’s April 2nd Board meeting direct staff to prepare a Budget Policy and annual budgets for fiscal years 2026-27 and 2027-28. 10 Recommendation
Agenda Page 25
Questions?
Agenda Page 26
12 Budget Priorities presentations
Draft Budget presentations
Proposed Budget presentations
All the same Committee and Board
interactions only now focused on two
years of business activities
Two proposed budgets presented to the
Board for approval.
Examples
FY2026 – 2027 FY2027-2028
What Does This Look Like?
Agenda Page 27
FY1 Budget Process – Same but for 2 FY Budgets
13 January – April year 0 (Staff) –Goal Setting, FY1 & FY2 Departmental Budgeting, Rate Design Planning, Energy Cost Projections & FY1 & FY2 Consolidated Budget Planning April X, year 0 (Executive Committee) – Budget Priorities April X, year 0 (Finance Committee) – Budget Priorities & Draft FY1 & FY2 Budgets May X, year 0 (Board) – Budget Priorities
May X, year 0 (Community Advisory Committee) – Draft FY1 & FY2 Budgets May X, year 0 (Executive Committee) – Draft FY1 & FY2 Budgets May X, year 0 (Finance Committee) – Proposed FY1 & FY2 Budgets June X, year 0 (Board) – Proposed FY1 & FY2 Budgets
Agenda Page 28
FY2 Budget Process - New
14 Second half of FY1 – Rate Revenue and Cost of Energy Forecasts for FY2, and updates to FY1 and FY2 Operating Expense forecasts based on FY1-to-date actuals May of FY1 (Finance Committee) – Budget status review
June of FY1 (Board) – In conjunction with the annual rate setting process, approval of an amended FY2 budget reflecting new rate revenues and new cost of energy forecasts Oct/Nov of FY2 (Finance Committee & Board) – Present an outlook for the FY2 operating expense budget in conjunction with complete and audited financial results from FY1 In addition to the planned budget amendment for FY2 to account for changes in rates and cost of energy forecasts, other budget amendments could be presented to the committees and Board if additional budget authorization is necessary, as is currently the case.
Agenda Page 29
15 How Would Transfers Work?
Agenda Page 30
Staff Report – Agenda Item 5
To: Executive Committee
From: Joanne O'Neill, Senior Director, Customer Programs Reviewed by: Matthew Langer, Chief Operating Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Power Ready System Ownership Delivery Approach Date: March 19, 2026
RECOMMENDATION
Receive Presentation on the proposed Power Ready Round 2 Ownership Delivery Approach and provide feedback on the Ownership Delivery Structure and whether staff should proceed with the necessary activities associated with pursuing ownership.
If the Executive Committee is supportive of moving forward, staff will present the proposal to the Board in April and request direction for staff to move forward with Power Ready Round 2.
At a subsequent Board meeting, staff would return with a proposal to approve the Power Ready Round 2 sites and budget.
ATTACHMENT
1. Power Ready System Ownership Delivery Approach Presentation Agenda Page 31
Power Ready System Ownership
Delivery Approach
March 19, 2026
Agenda Page 32
Agenda
2 Power Ready Overview and Background
Proposed Power Ready Ownership Delivery Approach
Ownership Risk Assessment
Cost, Timeline, and Next Steps
Feedback Requested
Receive Presentation on the proposed Power Ready Round 2 Ownership Delivery Approach and provide feedback on the Ownership Delivery Structure and whether staff should proceed with the necessary activities associated with pursuing ownership.
If the Executive Committee is supportive of moving forward, staff will present the proposal to the Board in April and request direction for staff to move forward with Power Ready Round 2.
At a subsequent Board meeting, staff would return with a proposal to approve the Power Ready Round 2 sites and budget.
Agenda Page 33
Power Ready Overview and
Background
Agenda Page 34
Background & Executive Summary
4 The Power Ready program was first presented to CPA member agencies in 2019. CPA developed the Round 1 portfolio, which comprises 11 backup energy systems totaling 1.15 megawatts (MW) of solar photovoltaic systems paired with 1.3 MW and 5.2 MWh of battery energy storage system (BESS) capacity, collectively.
Those projects are in various stages of project development and are expected to be installed in the next 12 months.
The Board expressed interest in asset ownership during the 2024 Board Retreat and re-affirmed that interest during the 2025 Board Retreat.
Staff has researched and evaluated several options and recommends moving forward with an ownership model, as detailed in this presentation.
Round 2 Update
• CPA solicited interest in Power Ready Round 2 from member agencies beginning in February 2025 and the application window closed in December 2025.
• CPA has screened 132-member agency and community sites from 26 member agencies for program eligibility, out of which 24 agency priority sites from 8 member agencies have been assessed for technical feasibility with on-site assessments from CPA’s technical consultant. • CPA is working with member agencies to finalize site designs and confirm interest in moving forward.
Agenda Page 35
Power Ready Overview
5 Power outage events, including planned Public Safety Power Shutoffs (PSPS) and unplanned outages continue to disrupt community services; unprecedented weather events continue to pose threats to grid reliability.
CPA provides member agencies and their critical community facilities with resilient, clean, on-site solar and battery storage backup power systems at no upfront cost and no additional costs. • A portion of the battery will be available for power outages for select critical loads at facilities. • Annual electricity charges for the Site Host will be equal to or less than the amount that would have otherwise been charged if they did not participate.
Facilities may be eligible if they provide the continuation of a critical public service or serve as a place of refuge for the community.
Power Ready System
Example Illustration
Why Power Ready?
What is Power Ready?
Communities are seeking clean energy resilience solutions that align with climate adaptation and climate action plans.
Resilience projects are expensive, complex, and require specialized knowledge to design, implement, and maintain.
Agenda Page 36
CPA Asset Ownership Drivers
6 The current Power Purchase Agreement (PPA) model has proved challenging to implement. CPA may be able to more effectively deliver on the Power Ready program if it owns the assets, which has the potential to yield project cost savings in some circumstances, while also investing in CPA's internal capacity to support further ownership strategies.
Challenges with existing model:
• Qualified PPA project developers were hesitant to
reply to the solicitation due to project readiness,
complexity, and the number of small projects.
• The PPA model requires aggregating multiple
projects into a large portfolio, required to reach a
cost-effective scale, which must advance
concurrently – one project's delays can impact the
entire portfolio.
• Significant delays occurred during the negotiations of both pre-solicitation MOUs with member agencies
and post-PPA Site Lease Agreements with the
developer; as a result, the Board approved an
amendment to provide relief to operational dates and
cost increases.
Opportunities through system ownership:
• Potentially increase the number of contractors
responding to solicitation because the scope of work
will more closely align with typical market offerings.
• Increased oversight and control by CPA during
project development should help ensure the process
runs more smoothly and efficiently.
• CPA would directly negotiate the Site Lease
Agreement with Site Hosts prior to CPA issuing
solicitations, which may shorten the timeline by
requesting one formal governing body approval for
both the MOU and SLA, instead of two separate
votes for the MOU and SLA.
Agenda Page 37
7 During the 2025 Board Retreat CPA staff requested feedback from the Board on Power Ready with the following break-out groups:
1. Power Ready program structure: Discuss the details of the current program offering.
2. Enhancing efficiency in Power Ready’s project delivery: Focus on streamlining key milestones, including technical feasibility and contract negotiations with member agencies.
3. Reviewing risks to Power Ready asset ownership: Assess the risks for future diligence.
Board members were generally supportive of CPA continuing to explore project ownership within the Power Ready program.
Board members provided a number of potential liability, risk, and contracting questions that they wished to see considered in staff’s exploration process.
Feedback Received from the Board
Agenda Page 38
Proposed Power Ready
Ownership Delivery Approach
Agenda Page 39
Proposed Delivery Structure
9 Since the Board retreat, staff has conducted wide-ranging research, including: reviewing relevant asset ownership models, identifying requirements in the Public Contracts Code, engaging subject-matter experts and legal counsel, consulting with CCAs that have similar programs, and holding informational interviews with contractors.
From this research, staff identified a Design-Build process utilizing a Build-Transfer Agreement as the most appropriate approach for CPA and the Power Ready program. • Design-Build is a project delivery method that utilizes one Engineering, Procurement, and Construction (EPC) contractor to provide both the engineering (design) and construction (build), which provides efficiency in advancing complex projects.
• Build-Transfer Agreement (BTA) is a variation of Design-Build that allows CPA to purchase project assets after completion from the EPC contractor. The BTA approach substantially reduces CPA's project development risk prior to asset transfer.
To support successful project delivery, CPA would contract with an Owner's Representative to provide project development and oversight of the EPC and Operations and Maintenance (O&M) contractors. The Owner's Representative will:
• Monitor and ensure that the projects are being developed in (1) a safe and timely manner and (2) consistent with code, industry best practices, and the agreed upon scope of work. • Verify the project assets are commissioned and operating prior to receiving transfer of ownership.
CPA would also contract with an O&M contractor to inspect, maintain, and repair systems once operational and throughout the life of the project on CPA's behalf.
Agenda Page 40
Power Ready Roles
10 Clean Power
Alliance Site Host
EPC
Build-Transfer
Agreement
Site Lease
Agreement
Memorandum of
Understanding
O&M
Contractor
O&M
Agreement Power Ready Roles:
• CPA: Oversees the Power Ready program; provides oversight, project management, and funding.
• Site Host: The member agency hosting the Power Ready system and receiving the resilience benefits.
• Owner's Representative: Technical consultant assisting CPA to independently verify the EPC designs and that project
construction meets specifications.
• EPC: Engineers, procures equipment, and constructs the projects for CPA on the Site Host property.
• O&M Contractor: Provides post-construction recurring
inspections, as needed repairs, and optimizes the system's performance.
Owner's
Representative
Legend:
• Clean Power Alliance
• Site Host
• Contractors
• Contracts between stakeholders
Agenda Page 41
Procurement Process
11 Ownership of the Power Ready Round 2 systems is considered a Public Works project under State law and requires a prescriptive set of actions in conducting the procurement process.
• These steps are aligned with the existing CPA Non-Energy Procurement Policy CPA would follow the design-build contracting requirements under the Public Contract Code and issue a two-step solicitation for the EPC contractor:
1. Request for Qualifications (RFQ): CPA will pre-qualify proposers based on CPA's requirements for qualified contractors.
2. Request for Proposals (RFP): Developers will submit bids on the projects, including project-specific designs and accompanying costs. CPA will use a best value approach for selection considering criteria including experience, safety, and product quality.
Other CCAs (Ava and PCE) have similar programs to Power Ready and are already utilizing a similar project delivery method to develop their projects.
Agenda Page 42
Ownership Risk Assessment
Agenda Page 43
Risk Assessment Background
13 During the Board Retreat staff was asked to further explore the risks associated with asset ownership including potential preventative measures and mitigations for how to address those identified risks.
Staff consulted with industry experts and CPA’s technical consultant to better understand potential risks for behind the meter solar and storage projects.
Projects of this type, and their associated risks, are common and well documented and offer insights to inform CPA’s approach.
Additionally, projects must comply with all applicable codes and standards, receive permits through relevant jurisdictions, and the products selected will have undergone rigorous testing to achieve third-party product certifications.
As a result, staff believes that the risks are manageable for CPA given the planned mitigations and the scale of the program.
Agenda Page 44
Example Risks, Preventative Measures, and Mitigations
14 Example Scenario Event
Probability
Potential
Impact Preventative Measures & Mitigations
System Performance:
A portion of the solar system is not
generating energy due to an
equipment failure
Moderate Low
• Preventative Measures: CPA's O&M contractor will perform recurring preventative maintenance inspections and repair identified issues • Mitigations: CPA's O&M contractor will be responsible for maintaining performance guarantees and will monitor system performance, manage equipment warranties, and remedy unplanned issues as they arise Property damage and/or injury:
A solar panel falls and damages a
vehicle and causes personal injury
Very Low Moderate
• Preventative Measures: CPA's O&M contractor will perform recurring preventative maintenance inspections and repair identified issues • Mitigations: CPA will obtain appropriate insurance coverages to include third-party liability; CPA will require contractor to maintain insurance; CPA will seek indemnity from contractor and/or contribution from contractor’s insurer.
Catastrophic system failure:
A battery causes a fire and damages
the Power Ready systems and Site
Host property
Very Low High
• Preventative Measures: Projects will be designed to or above code, including fire suppression measures; products and installation will be evaluated for quality and performance; CPA will evaluate contractor experience and equipment specifications during the solicitation • Mitigations: If an incident occurs CPA will perform a post-incident inspection and seek remedies within (1) EPC and/or O&M contracts, (2) Equipment and workmanship warranties, (3) Insurance
Agenda Page 45
Cost, Timeline, and Next Steps
Agenda Page 46
Estimated Power Ready Cost of Ownership
16 Cost Category Cost Estimates
Project Construction Phase (years 1-2) $7,800,000
Operations & Maintenance Phase (years 3-20) $5,400,000
Total 20-year costs $13,200,000
Estimated project and program delivery costs over the 20-year Operational Term for Power Ready Round 2 portfolio assuming 8 projects and 400kW solar; 550kW / 2,500kWh battery.
System Ownership Assumptions
Project costs include capital costs and O&M and based on NREL data. • Project costs assume 30% Investment Tax Credit (ITC) on battery systems only. • CPA would plan to purchase the assets and not utilize debt financing.
Includes costs for external legal counsel and Owner's Representative services.
Does not include new CPA project manager position (already included in FY25/26 staffing budget).
Note: Costs are estimates and
will be updated once
site selection is complete to
reflect the expected portfolio
prior to requesting Board
approval of the EPC contract.
Agenda Page 47
Timeline
17 Staff issues Design-Build
procurement
2026 2027
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Executive
Committee
Review site
selection
recommendation
Board
Meeting
Approve/Direct:
1) Site selection
2) Budget
3) Owner's Representative contract*
4) Direction to launch Design-Build RFP
Board
Meeting
Approve:
EPC Contract
Design, permitting and construction
2028
Q4
Projects
operational
*Owner's Representative contract may
be presented to the Board at a separate
date
Executive
Committee
Review
ownership
delivery
approach
Board
Meeting
Direct:
Proceed with
proposed ownership
structure
Agenda Page 48
Feedback Requested and Next Steps
18 Staff requests feedback on the Ownership Delivery Structure and whether staff should proceed with the necessary activities associated with pursuing ownership.
If the Executive Committee is supportive of moving forward, staff will present the proposal to the Board in April and request direction for staff to move forward with Power Ready Round 2.
Key Next Steps:
1. At a subsequent Board meeting, staff would return with a proposal requesting approval for the Power Ready Round 2 sites and budget.
2. Once site selection is approved by the Board, the participating member agencies will have a set amount of time (ex: 6 months) to execute the Memoranda of Understanding (MOU) and Site Lease Agreement (SLA) with CPA.
3. Staff will also present a contract for an Owner’s Representative for Board approval later in 2026, if needed.
Agenda Page 49
Questions
Agenda Page 50