Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, May 21, 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
Lucerne Hotel
201 West 79th Street
New York, NY 10024
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 Agenda Page 1
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
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 April 16, 2026, Executive Committee Meeting
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
3. Review Draft Agenda for the June 4, 2026, Board of Directors Meeting
4. Receive Presentation on Draft FY 2026-27 and FY 2027-28 Budget and Budget Policy
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT REGULAR MEETING ON JUNE 18, 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 April 16, 2026, Executive Committee Meeting
Date: May 21, 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
April 16, 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
Los Angeles County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Alhambra City Hall
Conference Room
111 S. First St.
Alhambra, CA 91801
CALL TO ORDER & ROLL CALL
Chair Klein Lopez called the meeting to order at 1:33 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 Remote
Beverly Hills Julian Gold Immediate Past Chair Remote
Camarillo Susan Santangelo Committee Member Remote
Carson Reata Kulcsar
Alternate Committee
Member Remote
Hawthorne Alex Monteiro Committee Member Remote
Agenda Page 4
Executive Committee Item 1
Los Angeles County Aaron Ordower Alternate Remote
Santa Paula Jenny Crosswhite Committee Member Remote
Sierra Madre Robert Parkhurst Committee Member Present
Ventura County Absent
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the March 19, 2026, Executive Committee Meeting Motion: Committee Member Parkhurst, Sierra Madre
Second: Committee Member Ordower, 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, reported that a transmission bill CPA is supporting has advanced out of the Assembly’s Utilities and Energy Committee with majority support. Bill amendments limit CPA’s involvement to projects in the State’s Transmission Accelerator program, which includes projects that can receive tax credits and are connected with the state’s infrastructure bank. He thanked Vice Chair Horvath and Director Ordower for their assistance in gaining key legislative support. Mr. Bardacke also commented on wildfire liability, noting that the California Wildfire Fund report referenced potential reforms to the State’s methodology for assessing liability in the case of disaster. Finally, he reported that SunZia has increased its production of wind energy for test purposes. On a related note, California’s grid recently broke a record for most wind energy on the system, recording 7,200 MWs.
3. Review Draft Agenda for the May 14, 2026, Board of Directors Meeting Mr. Bardacke discussed the consent agenda, including CAC reappointments and proposed amendments to CPA’s investment policy. On the regular agenda, staff will present a rate outlook and budget priorities, and the Board Chair will also open the nomination period for at-large positions on the Executive Committee.
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
Karen Schmidt, Senior Director, Rates and Strategy, presented three rate approach options: the Clean-up, Historical Bill Comparisons, and Lower Reserve Buffer. These options were developed to maintain varying levels of projected reserve buffer to address potential bill and competitiveness impacts of the likely 2027 PCIA and SCE generation rate changes. Ms. Schmidt also referenced the projected contributions of the options to CPA’s Net Position and Reserve percentage. The selected rate-setting approach will apply to total bill comparison levels for residential and small/medium business rates, as well as subset rates based on projected Cost of Service. Customers would see a range between very Agenda Page 5
Executive Committee Item 1
little change to a reduction of up to $4 per 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 FY2025-2026 5% premium ends. Lean and Clean customers would see either no change or a small decrease under Options 2 and 3.
Current market prices for brown power, Resource Adequacy and Renewable Energy Credits (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. Ms. Schmidt reminded the Committee that the FY 2026-2027 rates will not apply to the cities of Cudahy and Fillmore, which begin CPA service in October 2027. Staff will present rate-setting options for these cities in December 2026, ahead of their default energy selection in early 2027.
Committee Member Gold suggested that if reserves exceed the 50% target, CPA could allocate funding for community programs. Staff noted that reserves cannot exceed a maximum of 60%; this target can support adjustments in response to market volatility or be directed to customer programs. Committee Member Gold stated support for Option 1. Mr. Bardacke noted that both Options 1 and 2 would result in staying above the 50% reserve target, even with an interim rate adjustment. Committee Member Crosswhite and Parkhurst expressed support for Option 2 as it results in healthy reserves and slightly lower rates. Committee Member Ordower asked about PCIA volatility under Option 2; staff responded that it provides a wide range of reserve contribution to address rate adjustments.
Committee Members Santangelo, Maloney, and Kulcsar also expressed support for Option 2 as it takes into account various factors such as the PCIA, SCE rates, affordability and market volatility. Staff clarified for Committee Member Monteiro that the proposed rates in the options are based on Cost of Service and making adjustments may result in one rate subsidizing another; he stated support for Option 2. In response to Committee Member Kulcsar, Mr. Bardacke confirmed that if reserve targets are exceeded, staff would need to discuss with the Board options for excess reserves. Chair Klein Lopez expressed support for rates that are at par or less than SCE’s rates and noted support for Option 2.
Motion: Committee Member Parkhurst, Sierra Madre
Second: Committee Member Monteiro, Hawthorne
Vote: The Committee unanimously approved Option 2 by a roll call vote.
5. Receive Presentation on FYs 2026-27 and 2027-28 Budget Priorities Mr. Bardacke, noted that this year’s budget preparation included consideration of a two-year budget cycle, which would allow more discussion about organizational planning and spending. CPA manages about $1 billion of annual energy costs representing 92% of total costs. While energy prices are falling, competitiveness pressures are ever-present, requiring CPA to be nimble, innovative, and well-staffed. CPA can help mitigate rising electricity bills by delivering customer programs that save customers money and reduce peak load, continuing to manage risk, engaging customers, and implementing innovative business and policy measures.
Mr. Bardacke provided an overview of operating expenses, which represent 8% of CPA’s total costs for the next two fiscal years. Operating expense adjustments Agenda Page 6
Executive Committee Item 1
have limited impact on customer rates in the short term, though the proposed budget supports work that helps keep rates competitive and stable over time.
Some line items are projected to have flat or minimal increases, including Technical Services, Other Services, Billing Services, and General & Administrative. Legal and SCE Service Fees are budgeted to decrease. Customer Programs will increase in year two, Communications and Marketing in year one, and Software in years one and two. Staff predicts potential staffing growth over the next two fiscal years, but slightly lower than last year’s 16%. Mr. Bardacke covered technology investments, customer programs, specifically expanding existing programs, and communications. Staff is proposing investment in public relations but requested feedback on marketing priorities. With regard to staffing, 53% of the FY 2026-27 increase is due to the full-year impact of the current year’s new hires, next year’s COLA, and other retention efforts. New positions address growth in communications and marketing, energy contracting, customer and community support, and cybersecurity. Mr. Bardacke noted the continued deceleration in the staffing budget growth rates.
In response to Committee Member Parkhurst’s question about AI in operations, Mr. Bardacke explained that CPA is piloting use-cases with different platforms; CPA is using AI tools internally to enhance efficiency, but not to make organizational decisions. Regarding Customer Programs, Committee Member Ordower expressed gratitude for the expansion of customer programs, some of which complement LA County initiatives. Chair Klein Lopez expressed support for increased media outreach and highlighting CPA’s success in its upcoming anniversary; noted that it is important to consider if the Mobile Education Unit (MEU) is reaching the right audience. Committee Member Crosswhite agreed with the Chair on communications priorities and suggested the MEU could eventually participate in school educational programs. Committee Member Ordower relayed Vice Chair Horvath’s support for investment in earned media as more awareness of CCAs is needed; noted that the MEU may not provide as much return as other marketing efforts. Committee Member Maloney expressed support for direct mail because of its effectiveness and agreed that the MEU is not as effective as other marketing priorities. Committee Member Santangelo agreed with previous comments to prioritize public and media relations and CPA’s 10th Anniversary while putting the MEU on hold. Committee Member Monteiro suggested CPA explore existing educational programs that could share in the cost of the Mobile Education Unit. Committee Member Gold asked that when the MEU comes back for consideration, staff could break down costs such as vehicle maintenance, insurance, and depreciation. Regarding staffing, Committee Member Gold commended staff on turnover reduction; suggested that staff include information about cost offsets when switching from a consultant to an in-house employee.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Chair Klein Lopez adjourned the meeting at 3:12 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: May 21, 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 June 4, 2026, Board of Directors Meeting
Date: May 21, 2026
Staff will provide an overview of the proposed agenda items for the June 4, 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 June Board meeting.
Ventura Energy Power Share PPA Amendments
Fillmore (2.46 MW) and Saticoy (4 MW) are ground-mounted solar “agrivoltaics” Power Share projects under development by Ventura Energy in unincorporated Ventura County.
They were approved by the Board in December 2025. Ventura Energy is seeking to modify the projects to ensure that each solar facility's physical footprint is appropriately sized relative to the agricultural sensitivity and overall size of the parcel on which it is located. The Board will be asked to approve PPA amendments to the project site locations to address the agricultural and permitting constraints.
Agenda Page 9
Executive Committee Item 3
Desert Sands II PPA Amendments
Desert Sands II is a 140-MW standalone energy storage project located in Palm Springs, California under development by NextEra Energy Resources. The PPA was approved by the Board in May 2024. The Board will be asked to approve an amendment to the PPA to change the Guaranteed Construction Start Date from June 1, 2026 to December 15, 2026 in order to allow NextEra additional time to assess the impact to the project’s schedule of changes in the completion date of CAISO network upgrades that are necessary for the project to come online.
REGULAR AGENDA
The following items are recommended for inclusion on the Regular Agenda of the June Board meeting.
Approval of FY 2026/27 Rates
At the May 14, 2026 Board Meeting the Board adopted the following approach for FY 2026/27 rate setting:
a. Set total bill comparison targets for residential and small/medium business customers of 100% Green Power at a 7% premium, Clean Power at a 0% discount, and Lean Power at a 2% discount to SCE rates as of June 1, 2026, reflecting CPA’s projected FY 2026/27 cost of service (COS) and reserve target of 56-63% (Option 2: “Historical” Total Bill Comparisons); and
b. Update rates for large commercial, pumping and agriculture, and streetlighting rate classes (“subset rates”) to reflect CPA’s projected cost of service (COS) and the selected rate setting approach.
This approach enables CPA to provide competitive rates while preserving flexibility to respond to potential PCIA and SCE generation rate changes in calendar year 2027.
At the June meeting, staff will present detailed rates and resolutions to the Board for approval based on this approach.
Agenda Page 10
Executive Committee Item 3
Approval of FY 2026/27 & FY 2027/28 Budget and Budget Policy This item will be subject to a separate presentation to the Executive Committee.
PPAs/ESAs and Amendments
Staff is in the process of negotiating two 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.
Nomination Period for Executive Committee At-Large Positions At the May 14 Board meeting, the Board Chair opened 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 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 (complete)
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 (complete)
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 (in progress)
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 Agenda Page 11
Executive Committee Item 3
ATTACHMENT
1. Draft June 4, 2026, Board of Directors Agenda
Agenda Page 12
Executive Committee Item 3
Board of Directors of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, June 4, 2026
2:00 p.m.
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from May 14, 2025, Board of Directors Meeting
2. Approve Ventura Energy PPA Amendments
3. Approve Desert Sands PPA Amendments
4. Receive and File Quarterly Financial Report
5. Receive and File Quarterly RMT Report
6. Receive and File Quarterly Program Report
7. Receive and File Quarterly Communications Report
8. Receive and File Bill Positions Monthly Report
9. Receive and File Monthly Community Advisory Committee Report
REGULAR AGENDA
Action Items
10. Approve FY 26/27 Rates
11. Approve FY 2026/27 & FY 2027/28 Budget and Policy
12. Approve & Authorize the CEO to Execute PPAs/ESAs and Amendments Election Item
13. Election of Executive Committee At-Large Positions
COMMITTEE CHAIR UPDATES
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NEXT MEETING ON JULY 2, 2026
Agenda Page 13
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: Draft Budgets for FYs 2026/27 and 2027/28 and Budget Policy Date: May 21, 2026
Staff will provide a presentation on the item.
ATTACHMENTS
1. Presentation on Draft Budgets for FYs 2026-27 and 2027-28
2. FY 2026-27 and FY 2027-28 Draft Budgets
3. Draft CPA Budget Policy No. 2026-20
Agenda Page 14
Draft FY26/27 and FY27/28 Budgets
May 21, 2026
Agenda Page 15
FY26/27 & FY27/28 Budget Process
2 January – April 2026 (Staff) – Goal Setting, Departmental Budgeting, Rate Design Planning, Energy Cost Projections & Consolidated Budget Planning
January 28, 2026 (Finance Committee) - 2-year Budget Cycle Proposal March 19, 2026 (Executive Committee) - 2-year Budget Cycle Proposal 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 FY26/27 & FY2027-28 OpEx budgets May 14, 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 FY26/27 & FY2027-28 Budgets & Draft Budget Policy May 27, 2026 (Finance Committee) – Proposed FY26/27 & FY2027-28 Budgets & Draft Budget Policy June 4, 2026 (Board) – Proposed FY26/27 & FY2027-28 Budgets & Proposed Budget Policy Agenda Page 16
3 FY26/27 budgeted revenues would decrease by $166 million or 13% year-over-year • Budgeted revenues reflect the rate setting approach approved by the Board at its May 14, 2026 board meeting, and an allowance for bad debt
FY26/27 Budgeted costs of energy would decrease by $137 million or 11% year-over-year • Budgeted cost of energy would decrease primarily due to expected reductions in renewable and system energy costs
Operating expenses would increase by $8.9 million or 12% year-over-year in FY26/27 and $12.2 million or 14% year-over-year in FY27/28
• Operating expenses reflect CPA’s FY26/27 and FY27/28 budget priorities presented at the Finance and Executive Committee meetings in April 2026 and Community Advisory Committee and Board meetings in May 2026
The budgeted increase in the net position of $23 million is projected to bring CPA’s reserve percentage to 57%, which is above the target but consistent with CPA’s Reserve Policy The budget presented today remains a draft and subject to refinement. Final proposed budget will be presented to the Finance Committee on May 27 and the Board on June 4 FY26/27 & FY27/28 Draft Budgets – Key Takeaways
Agenda Page 17
FY26/27 Budget Overview
4 A $53.0 million transfer from
the fiscal stabilization fund
(FSF) contributes to a positive
operating income of $1.3
million (rows 2,8)
Non operating revenues from
interest income contribute to a
gain in net position of $22.8
million (rows 9, 10)
Overall, reserves decrease by
$30.2 million year over year
representing the difference
between the FSF draw and the
gain in net position (row 14)
Agenda Page 18
Net Energy Revenue
5 Budgeted electricity revenues (-17%) reflect the FY26/27 rate approach approved by the Board on May 14, 20261 which results in an overall revenue decrease Revenues are shown net of bad debt expense which is budgeted at 0.75% of revenue or -$8.3 million in FY26/27
Energy costs (-11%) in FY26/27 reflect lower renewable energy costs and day ahead energy costs arising from decreasing market prices, and includes a contingency equal to 5.0% of energy costs Note that FY27/28 revenues and energy costs will be updated with the spring 2027 rate setting process
1 FY26/27 Rate Approach: Lean -2%, Clean 0%, 100% Green +7% compared to Residential/Small Business SCE base rates Agenda Page 19
Operating Income and Reserves
6 Operating expenses reflect the budget priorities presented to the Executive Committee in April and Board in May. 99% of the 12% budgeted increase in FY26/27 is attributed to investments in staffing, technology, marketing, and communications. 85% of the 14% budgeted increase in FY27/28 is attributed to investments in staffing, technology, customer programs, marketing, and communications.
The budgets reflect expected cost increases due to media markets impacted by special events (Super Bowl, Olympics, Elections) and Board/ExCom feedback on enhanced customer engagement initiatives.
Days liquidity on hand (DLOH)** would increase to approximately 236 days in FY26/27 in alignment with the Reserve Policy.
Net position and DLOH for FY27/28 will change prior to the beginning of the fiscal year with the rates update in June 2027. * Reserves are the sum of the Net Position and Fiscal Stabilization Fund (also known as balance sheet equity) and are not equivalent to or held as cash ** DLOH is equal to the sum of cash, investments and available line of credit divided by average daily expenses Agenda Page 20
Per Board direction, a Budget Policy has been prepared detailing that every second year staff will present the Board with the next two consecutive fiscal year budgets simultaneously for approval.
The budget policy authorizes CEO and CFO to make the following limited operating expense budget transfers, subject to controls, 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 Operating Expense lines
The policy outlines transfer controls including maximum annual transfer limits, approval requirements, and limitations; no additional budget may be transferred into a staffing line, and no budget may be transferred out of the customer programs incentives budget As part of the FY2 (e.g. second year) annual rate setting process, staff will present the Board a budget amendment and update FY2 budgeted revenue and cost of energy line items to reflect the new rates and recent energy projection. 7 Summary of Draft Budget Policy
Agenda Page 21
Revenues are budgeted at $1.2 billion in FY26/27
Costs of energy are budgeted at $1.07 billion in FY26/27 FY27/28 revenues and cost of energy will be amended in June 2027 with next year’s rate setting process
Operating costs are budgeted at $86 million in FY 26/27 and $98 million in FY27/28 reflecting continued investments in staffing, communications, customer programs and software
The budgeted increase in the net position of $23 million in FY26/27 aligns with CPA’s Reserve Policy
CPA’s financial metrics remain consistent with CPA’s “A” credit rating 8 Summary
Agenda Page 22
Questions?
Agenda Page 23
Select CCA Operating Metrics and Comparisons
CPA’s metrics for operating expenses and staffing costs compare favorably with industry averages Agenda Page 24
10 A B CD E
In dollars unless otherwise noted FY 2025/26 Budget FY 2026/27 Budget Difference Difference (%) Revenue - Electricity net 1,319,741,000 1,097,413,000 (222,328,000) -17% Transfer from Fiscal Stabilization Fund * 53,000,000 - 53,000,000 0% Other revenue 4,514,000 7,494,000 2,980,000 66%
TOTAL REVENUE 1,157,907,000 1,324,255,000 (166,348,000) -13% TOTAL ENERGY COSTS 1,070,668,000 1,207,444,000 (136,776,000) -11% NET ENERGY REVENUE 87,239,000 116,811,000 (29,572,000) -25%
OPERATING EXPENSES
Staffing 27,846,000 31,576,000 3,730,000 13%
Technical services 2,465,000 2,503,000 38,000 2%
Legal services 1,542,000 1,409,000 (133,000) -9%
Other services 2,802,000 2,885,000 83,000 3%
Communications and marketing services 6,079,000 10,050,000 3,971,000 65% Customer notices and mailing services 1,425,000 1,993,000 568,000 40% Billing data management services 12,279,000 12,788,000 509,000 4% Service fees - SCE 2,404,000 1,126,000 (1,278,000) -53% Customer programs 14,425,000 14,682,000 257,000 2%
Data and Software 2,425,000 3,484,000 1,059,000 44%
General and administration 3,411,000 3,493,000 82,000 2% TOTAL OPERATING EXPENSES 85,989,000 77,103,000 8,886,000 12% OPERATING INCOME 1,250,000 39,708,000 (38,458,000) -97% Finance and interest expense 633,000 1,176,000 (543,000) -46% TOTAL NON OPERATING EXPENSES 633,000 1,176,000 (543,000) -46% Interest Income 22,188,000 26,568,000 (4,380,000) -16%
TOTAL NON OPERATING REVENUE 22,188,000 26,568,000 (4,380,000) -16% NON OPERATING REVENUE (EXPENSE) 21,555,000 25,392,000 (3,837,000) -15% CHANGE IN NET POSITION 22,805,000 65,100,000 (42,295,000) -65% NET POSITION BEGINNING OF PERIOD 529,655,182 464,555,182 65,100,000 14% NET POSITION END OF PERIOD 552,460,182 529,655,182 22,805,000 4% FISCAL STABILIZATION FUND 82,000,000 135,000,000 (53,000,000) -39% ESERVES END OF PERIOD (Net Position + FSF) 634,460,182 664,655,182 (30,195,000) -5% Other Uses
Capital Outlay 390,000 338,000 52,000 15%
Depreciation & Amortization (746,280) (617,000) (129,280) 21% CHANGE IN FUND BALANCE 23,161,280 65,379,000 (42,217,720) -65% Note: Funds may not sum precisely due to rounding
* Transfers to/from the Fiscal Stabilization Fund (FSF) are included for illustration, actual transfers are calculated and transacted at the close of the fiscal year pursuant to the FSF policy
CLEAN POWER ALLIANCE of SOUTHERN CALIFORNIA
DRAFT
Fiscal Year 2026/27 Budget
Agenda Page 25
AB C D E
In dollars unless otherwise noted
FY 2026/27
Budget
FY 2027/28
Budget Difference Difference (%)
Revenue - Electricity net 1,097,413,000 1,136,773,000 39,360,000 4% Transfer from Fiscal Stabilization Fund 8,000,000 53,000,000 (45,000,000) 0% Other revenue 7,494,000 7,539,197 45,197 1%
TOTAL REVENUE 1,157,907,000 1,152,312,197 (5,594,803) 0% TOTAL ENERGY COSTS 1,070,668,000 1,053,502,000 (17,166,000) -2% NET ENERGY REVENUE 98,810,197 87,239,000 11,571,197 13%
OPERATING EXPENSES
Staffing 31,576,000 36,014,000 4,438,000 14%
Technical services 2,503,000 3,073,000 570,000 23%
Legal services 1,409,000 1,333,000 (76,000) -5%
Other services 2,885,000 3,448,000 563,000 20%
Communications and marketing services 10,050,000 10,916,000 866,000 9% Customer notices and mailing services 1,993,000 2,113,000 120,000 6% Billing data management services 12,788,000 13,204,000 416,000 3% Service fees - SCE 1,126,000 1,142,000 16,000 1%
Customer programs 14,682,000 17,447,000 2,765,000 19%
Data and Software 3,484,000 5,785,000 2,301,000 66%
General and administration 3,493,000 3,716,000 223,000 6% TOTAL OPERATING EXPENSES 98,191,000 85,989,000 12,202,000 14% OPERATING INCOME 619,197 1,250,000 (630,803) -50%
Finance and interest expense 1,174,000 633,000 541,000 85% TOTAL NON OPERATING EXPENSES 1,174,000 633,000 541,000 85% Interest Income 20,923,000 22,188,000 (1,265,000) -6%
TOTAL NON OPERATING REVENUE 20,923,000 22,188,000 (1,265,000) -6% NON OPERATING REVENUE (EXPENSE) 19,749,000 21,555,000 (1,806,000) -8% CHANGE IN NET POSITION 20,368,197 22,805,000 (2,436,803) -11% NET POSITION BEGINNING OF PERIOD 552,460,182 529,655,182 22,805,000 4% NET POSITION END OF PERIOD 572,828,379 552,460,182 20,368,197 4% FISCAL STABILIZATION FUND 74,000,000 82,000,000 (8,000,000) -10% RESERVES END OF PERIOD (Net Position + FSF) 646,828,379 634,460,182 12,368,197 2% Other Uses
Capital Outlay 400,000 390,000 10,000 3%
Depreciation & Amortization (864,600) (746,280) (118,320) 16% CHANGE IN FUND BALANCE 20,832,797 23,161,280 (2,328,483) -10% Note: Funds may not sum precisely due to rounding
* Transfers to/from the Fiscal Stabilization Fund (FSF) are included for illustration, actual transfers are calculated and transacted at the close of the fiscal year pursuant to the FSF policy
CLEAN POWER ALLIANCE of SOUTHERN CALIFORNIA
Fiscal Year 2027/28 Budget
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Policy Title Budget Policy
Policy Number 2026-20 Effective Date Original: 06/04/2026
1. Purpose
CPA's annual, board approved budgets sustain Clean Power Alliance of Southern California's ("CPA") operations and advance its mission and strategic goals. This Budget Policy (“Policy”) establishes guidelines for the approval, administration, amendment, and reporting of annual, board approved budgets at CPA.
2. Two-year Budget Cycle
Beginning in June 2026, and every two years thereafter, staff shall present to the Board two consecutive fiscal year budgets simultaneously for approval.
3. Operating Expense Budget Transfers
A. The Board of Directors (“Board”) delegates to the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) the authority to review and jointly approve of transfers between operating expense1 (“OpEx”) budget line items, as specified herein:
1. Transfer budgeted line item amounts between fiscal years within the two-year cycle (“Inter-Year Transfers”).
2. Transfers of budget line item amounts between OpEx lines within a fiscal year (“Inter-Line Transfers”).
Inter-Year Transfers and Inter-Line Transfers are collectively referred to as “Transfer(s).”
B. Any Transfers specified in 3.A, above, must comply with all of the following conditions:
1. Maximum Fiscal Year Inter-Line Transfer
a. Aggregate per line item Inter-Line Transfers within a fiscal year shall be limited to the greater of $250,000 or 10%.
2. Limits on Customer Programs Budget
1 Operating Expenses (“OpEx”) refers to non-energy expenditures - consisting of staffing, goods, and services - that support CPA’s business operations.
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a. Transfers from the Customer Programs budget shall only (i) reduce funds otherwise available for program implementation and (ii) fund expenses that benefit or advance a Customer Program.
3. Limits on Staffing Budget
a. Staffing budget line item shall not be increased by Transfers b. Staffing budget line item may be reduced through Inter-Year or Inter-Line Transfers.
4. Inter-Year Transfers
a. Any Inter-Year Transfer shall be supported by a corresponding reduction in that Fiscal Year’s budget.
C. Any Transfers that do not comply with Sections 3.B.1-4, above, shall be brought to the Board for approval.
5. Budget Amendments
Budget amendments must be approved by the Board of Directors2 following review by the Finance Committee.
6. Reporting
The CFO shall report to the Board the following:
A. Monthly: Budget to Actual reporting in the Financial Dashboard; and, B. Quarterly: Fiscal year to date Budget to Actual reporting including a report of any Transfers.
7. Delegation of Authority
The Board further delegates to both the CEO and CFO the authority to administer this Policy, including but not limited to the Transfers described in Section 3. In the event of a Vacancy, as defined herein, the CEO or CFO may appoint a designee to act on their behalf or if no designee is selected, either the CEO or CFO may act independently until such time as the Vacancy no longer exists. A “Vacancy” includes paid time off, termination of employment, or a leave authorized under CPA’s Employee Handbook.
8. Periodic Review of Policy
The CFO shall review this Policy on an annual basis to determine if amendments or other changes are needed to address changing business conditions, changes in law or regulation, or other similar events. Amendments to this Policy shall be approved by the Board of Directors following review by the Finance Committee. 2 Per section 7.3.1 of the Joint Powers Agreement.
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