Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, April 16, 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
Beverly Hills City Hall
Council Office, 4th Floor
455 North Rexford Drive
Beverly Hills, CA 90210
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
PUBLIC COMMENT: Members of the public may submit their comments by one of the following options:
• Email Public Comment: Members of the public are encouraged to submit written comments on any agenda item to [email protected] up to four hours before the meeting. Written public comments will be announced at the meeting and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting. • Provide Public Comment During the Meeting: The General Public Comment item is reserved for persons wishing to address the Committee on any Clean Power Alliance-related matters not on today’s agenda. Public comments on matters on today’s Consent Agenda and Regular Agenda shall be heard at the time the matter is called. Comments on items on the Consent Agenda are consolidated into one public comment period. Members of the public who wish to address the Committee at CPA’s Office are requested to complete a comment card and provide it to staff. If you Agenda Page 1
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
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 ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from March 19, 2026, Executive Committee Meeting
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
3. Review Draft Agenda for the May 14, 2026, Board of Directors Meeting
4. Receive Presentation on FY 2026-2027 Rates and Recommend a Rate Setting Approach to the Board of Directors for Consideration at its May 14, 2026, Meeting
5. Receive Presentation on FY’s 2026-27 and 2027-28 Budget Priorities
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT REGULAR MEETING ON MAY 21, 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 March 19, 2026, Executive Committee Meeting
Date: April 16, 2026
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
MINUTES
Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
March 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
The Westin Pasadena
191 North Los Robles Avenue
Pasadena, CA 91101
CALL TO ORDER & ROLL CALL
Chair Klein Lopez called the meeting to order at 1:30 p.m. and Annie Mendoza, Deputy Clerk of the Board, conducted roll call.
Roll Call
Agoura Hills Deborah Klein Lopez Chair Remote
Alhambra Jeff Maloney Committee Member Remote
Beverly Hills Julian Gold Immediate Past Chair Remote
Executive Committee Item 1
Agenda Page 4
Camarillo Susan Santangelo Committee Member Remote
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 Absent
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 February 19, 2026, Executive Committee Meeting Motion: Committee Member Gold, Beverly Hills
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 who participated in Lobby Day; reported that Assemblymember Jacqui Irwin will sponsor a bill regarding transmission finance. Mr. Bardacke also discussed impacts of the Middle East conflict, noting that while oil prices have been immediately impacted, domestic natural gas prices have remained low so far and therefore electricity costs have seen limited impact. Staff is anticipating lower electricity prices in the immediate future and CPA is ahead of budget. Mr. Bardacke commented that CPA is planning for long-term stability in its rates, budgeting, and policy and program development.
3. Review Draft Agenda for the April 2, 2026, Board of Directors Meeting Mr. Bardacke discussed the CalCCA Special Assessment for SCE ERRA Review and Forecast Applications on the consent agenda and reported that Director Parkhurst was the only nominee for the Board Chair position; the Committee directed staff to place the election on the regular agenda. The regular agenda items include the two-year budget discussion, Power Ready ownership, and a rates outlook presentation. Regarding the latter, staff is calculating the differentials among CPA’s products and conducting a cost of service study. Mr. Bardacke noted that lower than expected power prices are a factor in a potential PCIA increase and lower rates. CPA is operating ahead of budget and meeting reserve targets.
In response to Committee Member Parkhurst’s question, Mr. Bardacke clarified that staff is targeting June for approval of solar and storage PPAs.
Executive Committee Item 1
Agenda Page 5
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
Jennifer Stevenson, Financial Planning and Analysis Manager, explained that CPA's business has matured with increasingly predictable multi-year planning and that staff recommend that the annual budget structure transition to a two-year budget cycle. Projects are increasingly spanning multiple fiscal years, and business decisions can be constrained by line-item allocations. If a two-year budget cycle is adopted, the Board would approve two consecutive fiscal year budgets simultaneously, with authorization for staff to make certain operating expense transfers subject to controls. 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 supported the transition to a two-year budget cycle.
Ms. Stevenson described the two-year budget system’s five controls, as well as accountability measures and reporting for transfers. Ms. Stevenson closed with a timeline of the budget process.
Chair Klein Lopez asked about budget amendments; staff responded that they can be made anytime they are warranted. Committee Member Hicks inquired about the ability of the CEO to make purchases; Mr. Bardacke stated that he has signing authority up to $250,000 as part of the non-energy contracting policy, and that no one vendor can get more than $250,000 in a 12-month period. Staff clarified for Committee Member Hicks that during fiscal year two, staff can propose a budget amendment if more funds are needed for a customer program or other use.
Committee Member Parkhurst asked about the Board’s ability to review budgeting and contracting items on its agendas. Staff explained that most non-energy contracts are placed on consent agendas because funding has already been allocated, while budget items are placed on the regular agenda. Staff will ensure the distinction between budget and contracts is clearly reflected in the presentation.
Vice Chair Horvath expressed support for a two-year budget process and asked how it would affect CPA’s potential transmission opportunities. Staff explained that long-term fixed assets have different accounting and reporting requirements, but transmission legislation has not yet been passed so budget amendments may be necessary. Committee Member Gold asked if CPA would create a different business entity to handle transmission projects, and David McNeil, Chief Financial Officer, offered that CPA’s legal authority has not yet been established and legislation will define a pathway forward. Chair Klein Lopez expressed support for the staff recommendation and enumerated the benefits of a two-year budget. Finance Committee Chair Santangelo reported that the committee was enthusiastic about the proposal as an indication of CPA’s stability and maturity as an organization.
Motion: Committee Member Santangelo, Camarillo
Second: Chair Klein Lopez, Agoura Hills
Vote: Item 4 was approved by a roll call vote.
5. Receive Presentation Receive Presentation on the Proposed Power Ready Round 2 Ownership Delivery Approach and Provide Feedback on the Ownership Delivery Executive Committee Item 1
Agenda Page 6
Structure and whether Staff Should Proceed with the Necessary Activities Associated with Pursuing Ownership
Matt Langer, Chief Operating Officer, provided background on the Power Ready program, which provides on-site solar and battery storage in the event of power outages. Interest from the Board in transmission ownership and challenges with the implementation of the current PPA model have led staff to develop a proposed delivery structure. Staff identified a Design-Build process utilizing a Build-Transfer Agreement that utilizes one Engineering, Procurement, and Construction (EPC) contractor that handles both the engineering (design) and construction (build) functions, supported by an Owner's Representative to oversee project development, compliance with code and industry best practices, and manage the agreed upon scope of work. Drawing on industry best practices and examples from other CCAs, staff determined that project risks are manageable with appropriate mitigations. The estimated cost of ownership over a 20-year operational term would total $13,200,000, with no debt financing and a new project manager position is included in CPA’s proposed staffing budget. Mr. Langer concluded with a timeline through 2028 and described next steps, including approval of sites and budget and the execution of Memoranda of Understanding (MOUs) and Site Lease Agreements (SLAs) with CPA. Staff requested feedback from the Committee.
Chair Klein Lopez asked about the end of the 20-year term, and staff explained that facilities could be decommissioned, continue operating if still viable, or sold to the host agency; specifics would be outlined in the SLA. Committee Member Monteiro inquired about insurance and staff stated that both CPA and the host agency would have insurance to cover respective liabilities, although contractors’ warranties and responsibilities would be first in review prior to pursuing any claims. Vice Chair Horvath expressed support, highlighting the approach as an example of a way to ease bureaucratic processes.
In response to Committee Member Hicks’ question about term length and equipment obsolescence, staff noted that CPA ownership allows for flexibility in reducing the term, though CPA assumes the risk of equipment becoming obsolete.
Staff clarified for Committee Member Gold that the equipment is a depreciable capital asset and due to tax credit requirements, CPA would not be able to transfer the facility to the host agency for free, but it could be sold at a fair market value.
Mr. Langer also noted that maintenance and repair expectations, including emergency response, will be outlined in the agreements. Host agencies are expected to receive backup power from the system, without impact to their electricity bill.
Committee Members expressed consensus support for the proposal and commended staff for improving upon Round 1. Committee Member Parkhurst emphasized the value of clearly defined roles to manage unforeseen circumstances and risks. Vice Chair Lopez expressed support, and Chair Klein Lopez added that having more control and flexibility will benefit CPA’s member jurisdictions.
COMMITTEE MEMBER COMMENTS
None
ADJOURN
Chair Klein Lopez adjourned the meeting at 2:57 p.m.
Executive Committee Item 1
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: April 16, 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 May 14, 2026, Board of Directors Meeting
Date: April 16, 2026
Staff will provide an overview of the proposed agenda items for the May 14, 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 May Board meeting.
CAC Reappointments
As per the CPA Bylaws (Article 8, Section 5), the two-year terms of service for current CAC members will expire at the end of April. Staff reached out to all current CAC members to notify them of the term expirations and to inquire whether they would like to be considered for reappointment. All CAC members responded, and twelve of the fourteen requested reappointment. Two representatives (one from the Gateway Cities region and one from the East Ventura/West L.A. County region) are unable to continue serving on the CAC and will step down.
Staff will recommend the reappointment of the twelve current CAC members who wish to continue serving. Staff is also currently soliciting interest from new candidates to fill the Agenda Page 9
Executive Committee Item 3
existing vacancy in the San Gabriel Valley region, as well as the new vacancies in the Gateway Cities and East Ventura/West L.A. County regions.
CPA Investment Policy Amendments
In March 2020, the Board adopted Policy 2020-14 (the “Investment Policy”) to govern the investment of CPA funds. The Investment Policy was subsequently amended in February 2024 to permit investment into the California Asset Management Program. In February 2026, CPA executed a Professional Services Agreement to receive investment portfolio management services from Chandler Asset Management, Inc. (“Chandler”) over a three-year period. Chandler is a SEC-registered Investment Adviser with approximately $45 billion of assets under management that currently serves dozens of California-based public agencies including several CCAs (MCE, Peninsula Clean Energy, San Diego Community Power, and Sonoma Clean Power). Chandler’s scope of services includes reviewing and providing input on CPA’s Investment Policy and working with Staff to develop and implement investment strategies that align with CPA’s Investment Policy.
Chandler and CPA staff have reviewed the Investment Policy and plan to recommend amendments that are aimed at:
• Expanding the types of acceptable investments to include several new investment types authorized under the California Government Code, Sections 53600 et seq., the statute governing the investment of public agency funds. • Creating maximum limits for each investment type as a percentage of the portfolio to improve risk diversification.
• Creating parameters to manage and mitigate credit and market risks arising from proposed new investment types.
The amendments would permit Chandler to invest in a broader range of low-risk assets on behalf of CPA, enhancing expected investment returns while maintaining CPA’s primary objectives of safeguarding the principal of its funds and meeting its liquidity needs. Amendments to the Investment Policy may also include administrative changes and terminology clean-up.
Agenda Page 10
Executive Committee Item 3
Government Code 53600 provides comprehensive and conservative guidelines under which all municipal agencies, including CPA, are required to invest their funds. Staff believe that adhering to the requirements of the Code coupled with contracting for experienced investment management services provided by Chandler provides a sound framework upon which to invest CPA funds. Staff plan to present proposed policy amendments to the Finance Committee at its April 2026 meeting and ask that the Committee recommend to the Board adoption of the proposed Investment Policy amendments at the May 2026 Board meeting.
REGULAR AGENDA
The following items are recommended for inclusion on the Regular Agenda of the May Board meeting
.
Rate Options/Approach
This item will be subject to a separate presentation to the Executive Committee.
Budget Priorities
This item will be subject to a separate presentation to the Executive Committee.
Nomination Period for Executive Committee At-Large Positions At the May 14 Board meeting, the Board Chair will open the nomination period for at-large Executive Committee positions for terms which will run from July 2026 through June 2028. The Executive Committee has two at-large positions for Directors representing LA County members and one at-large position for a Director representing Ventura County members. The eligibility criteria for at-large positions are as follows:
1. The candidates must be Regular Directors;
2. The candidates must have attended at least 50% of CPA’s Regular Meetings in the prior 12 months; and,
3. The candidates must affirm that they intend to serve a full term Agenda Page 11
Executive Committee Item 3
The nomination period will close on May 22, 2026. The election for the at-large positions will occur at the June 4 Board meeting. An updated election schedule is listed below.
April 2 Election of Board Chair
By April 20 Committee Chair appointments for the 2026-2028 term made by the New Board Chair; appointments announced at the
May 14 Board meeting
May 14 – May 22 At-Large Executive Committee Nomination Period (3 positions: 2 for Los Angeles County and 1 for Ventura
County) for the 2026-2028 term
June 4 Election of At-Large Executive Committee Members for the 2026-2028 term (Los Angeles County Regular Directors vote for Los Angeles County At-Large Positions; Ventura County Regular Directors vote for Ventura County At-Large
Positions)
July 1 Board Chair, Committee Chairs, Executive Committee At-Large Members begin the 2026-2028 term
ATTACHMENTS
1. Draft May 14, 2026, Board of Directors Agenda
2. List of Current Eligible Directors for Executive Committee At-Large Positions Agenda Page 12
Executive Committee Item 3
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, May 14, 2026
2:00 p.m.
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from April 2, 2025, Board of Directors Meeting
2. Approve Amendments to the CPA Investment Policy
3. Approve CAC Reappointments
4. Receive and File Bill Positions Monthly Report
5. Receive and File Monthly Community Advisory Committee Report
REGULAR AGENDA
Action Items
6. FY 26/27 Rate Approach
Information Item
7. FY 26/27 and FY 27/28 Budget Priorities
Election Item
8. Nomination Period for Executive Committee At-Large Positions
COMMITTEE CHAIR UPDATES
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT MEETING ON JUNE 4, 2026
Agenda Page 13
Current Eligible Directors for Executive Committee At-Large Positions
Los Angeles County
Paul Cheng Arcadia
Ed Albrecht Calabasas
Corey Calaycay Claremont
Yasmine-Imani McMorrin Culver City
Alex Monteiro Hawthorne
Stephanie Fossan La Canada Flintridge
Juan Munoz-Guevara Lynwood
Marianne Riggins Malibu
David Lesser Manhattan Beach
Edward Belden Monrovia
Laura Hernandez Port Hueneme
Brad Waller Redondo Beach
Debby Stegura Rolling Hills Estates
Omari Ferguson South Pasadena
Ed Chen Temple City
John Erickson West Hollywood
Mary Ann Pacheco Whittier
Ventura County
Chris Barrett Moorpark
Bert Perello Oxnard
Jenny Crosswhite Santa Paula
Rocky Rhodes Simi Valley
David Newman Thousand Oaks
Ryyn Schumacher City of Ventura
Agenda Page 14
Staff Report – Agenda Item 4
To: Executive Committee
From: Karen Schmidt, Senior Director, Rates & Strategy
Reviewed by: Matthew Langer, Chief Operating Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: FY 2026-27 Rate Setting Approach
Date: April 16, 2026
RECOMMENDATION
Receive a presentation on FY 2026-2027 rates and recommend a rate setting approach to the Board of Directors at its May 14, 2026, meeting as specified in the attached presentation.
ATTACHMENT
1. FY 2026-27 Rate Setting Approach Presentation
Agenda Page 15
FY 2026/27
Rate Setting Approach
April 16, 2025
Agenda Page 16
Summary
Staff requests that the Executive Committee recommend a FY2026/27 rate setting approach (see Slide 7 for options) to the Board for consideration at its May 14 meeting
The selected rate setting approach will apply to:
o Total bill comparison levels: Total bill comparison levels for residential and small/medium business rates to support competitiveness and manage reserves in preparation for PCIA and SCE rate impacts in 2027 (see options on slide 7) o Subset rates: Updated streetlighting, pumping and agriculture, and large commercial and industrial subset rates based on projected Cost of Service (COS) (see slide 9) The rate setting approach will guide the FY 2026/27 rates to be adopted by the Board at its June 4 meeting
Rate and financial projections shown in this presentation are preliminary and subject to change
Agenda Page 17
November 2025 – May 2026 (Staff) – FY 2026/27 rate planning; cost of service analysis, energy cost projections, load forecasting, and budgeting (ongoing) November 6, 2025 (Board) – 2026 PCIA/SCE Rates: First Look December 4, 2025 (Board) – Approve February 1, 2026 Interim Rate Adjustment Approach January 15, 2026 (Board) – Approve February 1, 2026 Interim Rate Adjustment April 2, 2026 (Board) – FY 2026/27 Rates Outlook
April 16, 2026 (Community Advisory Committee) – FY 2026/27 Rate Setting Approach April 16, 2026 (Executive Committee) – Recommend FY 2026/27 Rates Approach to Board May 14, 2026 (Board) – Request approval of FY 2026/27 Rate Setting Approach May 21, 2026 (Executive Committee) – Proposed FY 2026/27 Rates June 4, 2026 (Board) – Request approval of Proposed FY 2026/27 Rates 3 FY 2026/27 Rates Process
Agenda Page 18
Considerations for FY 2026/27 Rates
The options presented today are based on the 2026 -2027 rate product content which, per feedback from the September 2025 Board retreat, are similar to 2025 targets (Lean = 40% Clean Energy, Clean = 50% Clean Energy, 100% Green = 100% Renewable Energy), with added flexibility to adjust Clean Power content to achieve GHG emissions targets
The options are based on the projected cost of service and informed by the following factors:
1. Reserves and financial targets. CPA expects to exceed the Reserve Policy’s maximum reserve target of 50% by the end of the current fiscal year, providing the Board with some flexibility to respond to the competitive environment in FY 26/27
2. Competitiveness with SCE. Total bill comparisons for all rate products are currently near historical competitive levels. However, PCIA rates are expected to increase and SCE generation rates to decrease in January 2027, potentially worsening CPA’s competitive position across all rates
3. Price spread between CPA’s three retail rate products. The differential between Lean, Clean, and 100% Green Power has increased 1-2% as CPA’s Resource Adequacy and brown power costs have fallen more rapidly than and renewable energy costs
Current Residential/Small Business
Total Bill Comparison to SCE FY 2025/26 Year-end Financial Metrics (Projected) Lean Power Clean Power 100% Green
Power
Contribution to Net Position
(w/o FSF transfer) Reserve % Reserves Above 50% Target
-0.7% +1.3% +7.3% $87M – $103M 59-62% $114-138M
Note: Comparisons are total bill comparisons based on representative 2018 PCIA vintage rate schedules, average customer usage, and CPA and SCE rates as of February 1, 2026. Individual customer comparisons may vary by specific rate schedule and customer usage.
Agenda Page 19
5 Reserves and financial targets
Due to lower than budgeted energy costs, staff forecast that CPA will end the current year ahead of budget and with reserves exceeding the 50% maximum reserve target This provides the Board with some flexibility to respond to the competitive environment throughout FY 26/27
CPA could reduce rates and related revenue below forecasted FY 26/27 costs. The resulting loss would be offset by recording revenue that was deferred in prior years and is contained in the Fiscal Stabilization Fund (FSF) The loss and offsetting transfer from the FSF would reduce projected reserves at the end of FY 26/27, though reserves could still remain at or above the 50% maximum target
The magnitude of the rate adjustment effective July 1, 2026 will impact reduce reserves available to respond to competitive impacts later in the fiscal year. A larger rate decrease on July 1 will leave less reserves available to address competitive pressure in 2027 while a smaller rate decrease on July 1 will preserve more reserves to deploy in the future
Agenda Page 20
FY 26/27 Rate Options
Agenda Page 21
6 FY 2026/27 Rate Approach Options
The options presented provide competitive rates while maintaining varying levels of projected reserve buffer to address potential bill and competitiveness impacts of likely January 2027 PCIA and SCE generation rate changes
7 Scenario
Residential/Small Business
Total Bill Comparison to SCE
Estimated Financial Metrics at Fiscal Year-end
(Assuming no mid-year adjustment)
Lean
Power
Clean
Power
100%
Green
Power
Contribution to
Net Position (w/o
FSF transfer)
Reserve
%
Reserves
Above 50%
Target
FY 26/27
Option 1: “Clean-up” -1.0% +1.0% +7.5% $3M
+/-$20M 58-65% $90-167M
FY 26/27
Option 2: “Historical” Bill Comparisons -2.0% 0.0% +7.0% ($20M) +/-$20M 56-63% $66-143M
FY 26/27
Option 3: Low Reserve Buffer -3.0% -1.0% +6.0% ($55M)
+/-$20M 53-60% $32-109M
FY 2026/27 Rate Approach Options –
Residential and Small/Medium Business Total Bill Comparisons Note: Comparisons are total bill comparisons based on representative 2018 PCIA vintage rate schedules, average customer usage and load profile for each specified rate class, and projected SCE rates as of June 1, 2026. Individual customer comparisons vary by specific rate schedule and customer usage. Ranges for Financial Metrics reflect projected energy market and electric consumption uncertainty. Financial projections are subject to change.
Agenda Page 22
Total Bill Comparison Ranges – Residential
Projected Residential Customer Total Bill Comparisons – FY 2026/27 Rate Options* Total bill comparisons will be competitive with SCE for residential and small/medium business customers under all options based on projected SCE rates Customers would see a range between very little change to a reduction of up to $4/month across the various options
Customers on the 100% Green rate who began service in October would see an increase between $2-5 per month across the various options as their guaranteed FY 2025/26 5% premium ends.
Lean/Clean customers would see either no change or a small decrease under Options 2 and 3. *Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profile for the specified rate classes, and projected SCE rates as of June 1, 2026. Individual customer comparisons vary by specific rate schedule and customer usage. See Appendix for average small business monthly bills.
Scenario Average Monthly Bill Comparison to SCE
SCE base Lean Clean 100% Green Lean Clean 100% Green
February 2026 rates $196 $195 $199 $211 -0.7% +1.3% +7.3% Option 1: Clean-up $196 $195 $198 $211 -1.0% +1.0% +7.5% Option 2: Historical bill
comparisons $196 $193 $196 $210 -2.0% 0.0% +7.0%
Option 3: Low reserve
buffer $196 $191 $195 $208 -3.0% -1.0% +6.0%
Agenda Page 23
Large commercial and industrial, pumping and ag, and streetlighting rates are referred to internally as “subset rates.” Fewer than 9,900 or 1% of CPA customers are on subset rates The subset rate comparisons shown below are based on Cost of Service (COS) rates corresponding to the rate approach options on slide 7
Total bill comparisons for subset rates have improved over time, and under each FY 2026/27 rate scenario, most subset customers will have at least one rate option that is at a total bill discount to SCE
Subset Rates
Subset Rate Total Bill Comparisons – FY 26/27 Rate Options* *Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profiles for each specified rate class and projected SCE rates as of June 1, 2026. Individual customer comparisons vary by specific rate schedule and customer usage.
Rate Schedule
February 2026 Option 1: Clean-up Option 2: Historical Bill Comparisons Option 3: Low Reserve Buffer
Lean Clean 100%
Green Lean Clean 100% Green Lean Clean 100% Green Lean Clean 100% Green TOU-GS-3-D -0.2% 1.3% 7.3% -1.6% 0.6% 9.1% -2.7% -0.4% 8.5% -3.8% -1.4% 7.3% TOU-8-D-SEC 0.4% 2.8% 14.0% -5.0% 0.0% 10.2% -6.1% -1.0% 9.6% -7.3% -2.0% 8.4% TOU-PA-2-D -0.5% 0.2% 12.7% -2.2% 1.2% 9.9% -2.8% 0.5% 9.0% -3.3% -0.5% 7.7% TOU-PA-3-D 0.6% 1.2% 14.1% -1.7% 1.8% 10.7% -2.3% 1.1% 9.8% -3.3% 0.0% 8.5% LS-1 21.2% 23.0% 36.8% 15.9% 19.2% 29.2% 14.6% 17.9% 28.4% 13.2% 16.7% 26.9% Agenda Page 24
Current market prices for brown power, RA and RECs remain significantly lower than previous years. If this low pricing persists throughout 2026, it will put upward pressure on the 2027 PCIA rate calculation and downward pressure on SCE generation rates The CPUC is currently considering PCIA methodology changes related to the valuation of banked RECs in the PCIA calculation methodology. Depending on the outcome of this CPUC decision, the overall upward trend forecast for the 2027 PCIA could be mitigated slightly While the magnitude of these changes remain unknown, the outcome could be total bill increases and bill premiums compared to SCE for all CPA customers across all rate products beginning in January 2027, potentially triggering consideration of another interim rate adjustment
CPA Competitiveness in 2027
Agenda Page 25
Total Bill comparison levels: Select total bill comparison levels for residential and small business rates to reflect current COS and to support competitiveness and financial goals Update subset rates: Update streetlighting, pumping and ag, and large commercial and industrial subset rates to reflect projected COS and applying the selected rate approach option 11 Recap: FY 2026/27 Rate Approach Recommendations
*Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profiles for each rate class, and projected SCE rates as of June 1, 2024. Individual customer comparisons vary by specific rate schedule and customer usage.
Scenario
Residential/Small Business
Rate Comparison to SCE
Estimated Financial Metrics at Year-end FY 26/27
(Assuming no mid-year adjustment)
Lean
Power
Clean
Power
100%
Green
Power
Contribution to Net
Position (w/o FSF
transfer)
Reserve % Reserves Above
50% Target
Option 1: “Clean-up” -1.0% +1.0% +7.5% $3M
+/-$20M 58-65% $90-167M
Option 2: “Historical”
bill comparisons -2.0% 0.0% +7.0% ($20M)
+/-$20M 56-63% $66-143M
Option 3: Low reserve
buffer -3.0% -1.0% +6.0% ($55M)
+/-$20M 53-60% $32-109M
FY 2026/27 Rate Approach Options –
Residential and Small/Medium Business Total Bill Comparisons Agenda Page 26
Recommended Action and Next Steps
Action Requested
Today staff request that the Executive Committee recommend a FY 2026/27 rate setting approach for the Board’s consideration at its May meeting Next Steps
Final rate setting will take place at the June Board meeting along with adoption of the FY 2026/27 budget
o This rate setting will follow the rate approach adopted at the May Board meeting based on actual SCE June 2026 rates
FY 2026/27 rates will not apply to communities beginning CPA service in October 2027 – Cudahy and Fillmore
o Staff will bring options for the rate setting approach for these communities to the Board for consideration in December 2026, in advance of these communities selecting their default energy option in early 2027
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Questions
Agenda Page 28
Appendix
Agenda Page 29
Total Bill Comparison Ranges –
Small Business
Projected Small Business Customer Total Bill Comparisons – FY 26/27 Rate Scenarios Scenario
Average Monthly Bill Comparison to SCE
SCE base Lean Clean 100% Green Lean Clean 100% Green
February 2026 rates $274 $272 $277 $294 -0.7% +1.3% +7.3% Option 1: “Clean-up” $274 $271 $276 $294 -1.0% +1.0% +7.5% Option 2: “Historical” bill
comparisons $274 $268 $274 $293 -2.0% 0.0% +7.0%
Option 3: Low reserve
buffer $274 $265 $271 $290 -3.0% -1.0% +6.0%
*Comparisons are based on representative 2018 PCIA vintage rate schedules, average customer usage and load profiles for each specified rate class and projected SCE rates as of June 1, 2025. Individual customer comparisons vary by specific rate schedule and customer usage.
Agenda Page 30
Staff Report – Agenda Item 5
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: Budget Priorities
Date: April 16, 2026
Staff will provide a presentation on the item. The presentation will be distributed prior to the meeting.
Agenda Page 31