Executive Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Thursday, June 18, 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:
Ventura County Government Center
CEO Rincon Room
Hall of Administration
800 South Victoria Avenue
Ventura, CA 93009
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
Oxford Hotel Bend
20 NW Minnesota Avenue
Bend, OR 97703
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 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 May 21, 2026, Executive Committee Meeting
REGULAR AGENDA
2. Oral Update from the CEO on CPA Operations
3. Review Draft Agenda for the July 2, 2026, Board of Directors Meeting
4. Recommend to the Board of Directors (a) the Adoption of the Customer Contract Pricing Policy and (b) an Option on the Scope of Board Approvals to Include in the Policy:
Option 1: All Contracts Must be Approved by the Board
Option 2: Contracts Above a Certain Gigawatt-Hour Threshold Require Board Approval
Option 3: Option 1 or 2 but Exclude Customers Who Have Won the Direct Access Lottery from Board Approval
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT REGULAR MEETING ON JULY 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.
Staff Report – Agenda Item 1
To: Executive Committee
Subject: Approve Minutes from the May 21, 2026, Executive Committee Meeting
Date: June 18, 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
May 21, 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
Lucerne Hotel
201 West 79th Street
New York, NY 10024
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 Remote
Beverly Hills Julian Gold Immediate Past Chair Remote
Camarillo Susan Santangelo Committee Member Remote
Carson Cedric Hicks Committee Member Remote
Hawthorne Alex Monteiro Committee Member Remote
Agenda Page 4
Los Angeles County Aaron Ordower Alternate Committee Member Remote Santa Paula Jenny Crosswhite Committee Member Remote
Sierra Madre Robert Parkhurst Committee Member Remote
Ventura County Vianey Lopez Vice Chair Absent
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the April 16, 2026, Executive Committee Meeting Motion:
Second:
Vote:
Committee Member Parkhurst, Sierra Madre
Committee Member Maloney, Alhambra
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, announced that the SunZia wind project declared formal commercial operations on May 20, 2026, and is sending about 3,000 MW into the state grid. Mr. Bardacke also noted that CAISO reached 60% renewables overnight on May 18, 2026, reflecting wind, geothermal, biomass, and stored solar energy sources. Chair Klein Lopez congratulated staff for reaching the milestone.
3. Review Draft Agenda for the June 4, 2026, Board of Directors Meeting Mr. Bardacke discussed the consent agenda, reporting proposed changes to CPA’s plans for two agrivoltaics projects in Ventura County. On the regular agenda, staff will present the Fiscal Year (FY) 2026-2027 rates, as well as the FY 2026-27 and 2027-28 budgets and Budget Policy, and the Executive Committee at-large elections are also on the agenda. Staff noted for Committee Member Hicks that Directors Belden, Monteiro, and Crosswhite had been nominated at the Board meeting. The official nomination period closes on May 22, 2026.
4. Receive Presentation on Draft FY 2026-27 and FY 2027-28 Budget and Budget Policy
David McNeil, Chief Financial Officer, presented the draft budgets for FY 2026-27 and 2027-28, noting significant decreases in budgeted revenues and energy costs in FY 2026-2027. Operating expenses would increase by 12% in FY 2026-2027 and by 14% in FY 2027-2028, which reflects CPA's budget priorities. Mr. McNeil stated that a transfer of $53 million from the Fiscal Stabilization Fund (FSF) contributes to a positive operating income of $1.3 million in FY 2026-27. Non-operating revenues from interest income contributed to a $22.8 million gain in net position, and that overall, reserves decreased by $30.2 million year-over-year, reflecting the difference between the FSF draw and the gain in net position. Days liquidity on hand (DLOH) would increase to approximately 236 days in the first FY in alignment with the Reserve Policy. Mr. McNeil noted that FY 2027-28 revenues, Executive Committee Item 1
Agenda Page 5
energy costs, net position, and DLOH would be updated in June 2027, along with the rate-setting approach.
The presentation included a summary of the Budget Policy, which would authorize the CEO and CFO to make limited budget transfers for operating expenses. The policy specifies transfer controls, including maximum annual transfer limits, approval requirements, and limitations. Mr. McNeil stated that CPA’s financial metrics remain consistent with CPA’s “A” credit rating. Mr. Bardacke stated that the figures for contributions to the net position and reserves are based on the assumption that there will be no interim rate change in January and February. Mr.
Bardacke also noted that CPA compares well with other CCAs in staffing, operating expenses, and contribution to net position.
Committee Member Parkhurst asked for clarification about the FSF, and staff responded that the fund is currently at $135 million; however, staff plans to transfer $70 million at the end of the current FY, bringing it up to $205 million. Committee Member Crosswhite inquired whether the new budget system is compatible with the auditor’s needs, and staff responded that the audit does not focus on the budget so much as on the financial statements and actual spending. Committee Member Gold inquired about maintaining reserve levels and the FSF and developing a timeline for new ventures and how to pay for them. Mr. McNeil responded that CPA’s reserve target range is 30-50% and that it’s currently at 57%, noting that staff is comfortable with its status. If CPA were to engage in transmission projects, that would be the time to reassess reserve policies. Mr.
Bardacke noted that some Power Ready projects may require upfront capital investment, and that he and staff have discussed creating a new fund for that purpose. Chair Klein Lopez remarked that at the city level, a capital improvement plan includes saving and budgeting for projects and could be used for CPA’s asset ownership goals.
In response to Committee Member Gold’s question about CPA’s investment returns, staff stated that some funds are invested in U.S. treasuries with an average term to maturity of 2.5 years, some are with the Local Agency Investment Fund (LAIF), and others are with the California Asset Management Program (CAMP), with current earnings of about 3.8%. Regarding higher yields, Mr. McNeil said CPA has hired Chandler Asset Management to manage funds in accordance with CPA’s investment policy and California law. Committee Member Crosswhite noted that the City of Santa Paula uses Chandler and has experienced higher returns.
COMMITTEE MEMBER COMMENTS
Chair Klein Lopez noted Board Chair-elect Parkhurst may preside over the next meeting.
ADJOURN
Chair Klein Lopez adjourned the meeting at 2:24 p.m.
Executive Committee Item 1
Agenda Page 6
Staff Report – Agenda Item 2
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Oral Update from the CEO on CPA Operations
Date: June 18, 2026
The CEO will provide an oral update on CPA operations.
Agenda Page 7
Staff Report – Agenda Item 3
To: Executive Committee
From: Ted Bardacke, Chief Executive Officer
Subject: Review Draft Agenda for the July 2, 2026, Board of Directors Meeting
Date: June 18, 2026
Staff will provide an overview of the proposed agenda items for the July 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 July Board meeting.
USGBC-CA MOU to Expand Contractor Wildfire Training
Staff is requesting the Board approve and authorize the Chief Executive Officer to execute a Memorandum of Understanding (MOU) with the U.S. Green Building Council California (USGBC-CA) to continue to provide sustainable wildfire recovery resources and training program for building contractors and construction workers in the amount of $70,000 using Community Benefit funds from executed Power Purchase Agreements (PPAs).
In April 2025, the Board approved a MOU with USGBC-CA to expand the number of professionals certified under USGBC-CA’s Wildfire Rebuilding Certificate by providing ten in-person, hybrid and online trainings to contractors in the Palisades and Altadena areas.
CPA plans to continue with this partnership by funding ten more in-person or hybrid trainings within CPA’s service territory. This will also fund updates to online educational Agenda Page 8
Executive Committee Item 3
content and the creation of on-demand online courses in Spanish to allow for on-going access for construction professionals in both English and Spanish.
Pastilla, Inc. PSA Amendment
From June 2024 to June 2025 CPA contracted with Pastilla, Inc for a not-to-exceed (NTE) amount of $1,020,822 for website development and maintenance, development of brand strategy and creative content, marketing strategies for customer program recruitment, video production services and social media support. CPA renewed Pastilla’s contract from June 2025 to June 2026 at a NTE amount of $1,854,430 which included the same scope of work with an expansion in web development projects to connect customers to program opportunities and more robust creative development to refresh brand assets.
Staff is requesting approval of an amendment for the final term year of the Pastilla contract to increase the NTE to $4,106,137 million to align with the approved 2026-27 marketing budget. This includes supporting continued brand growth, expansion of video production services, and marketing strategies to help customers better understand CPA and the value CPA brings to communities it serves.
Bloom Ads Global Media Group PSA Amendment
From April 2024 to June 2025 CPA contracted with Bloom Ads Global Media Group for a not-to-exceed (NTE) amount of $2,059,000 for media buying, partnerships and research and planning to support program marketing, customer recruitment, and growth of CPA’s brand awareness. CPA renewed Bloom’s contract from July 2025 to June 2026 with a NTE amount of $2,655,327 which included the same scope of work with additional media buying, including experiential events, to extend CPA visibility and build connections with customers that help grow trust and loyalty.
Staff is requesting approval of an amendment for the final term year of the Bloom contract to increase the NTE to $3,744,203 million to align with the approved 2026-27 marketing budget, which accounts for anticipated increased costs in paid media due to media market Agenda Page 9
Executive Committee Item 3
impacts from high profile events such as World Cup and elections, and planned expansion of targeted advertising in our service area.
ERMP Amendments
In its annual review of CPA’s Energy Risk Management Policy (ERMP), staff will seek approval of revisions to the ERMP that reflect CPA’s operating goals, the evolution of CPA’s energy portfolio, and market changes that require updates to risk management policy and practices, potentially including:
• Aligning Resource Adequacy position measurement with CPUC’s Slice-of-Day framework by replacing the previous “Net Peak Hour” methodology with the “Baseload Equivalent” measurement methodology.
• Clarifying the criteria for when project commercial operation date (COD) extensions are subject to Board approval. The updated language would be refined to distinguish more clearly between extensions that are administrative in nature and those that are material changes requiring Board approval. • Clarifying when exclusivity and right-of-first-offer (ROFO) agreements require Energy Resources & Planning Committee approval. The updated language would specify that exclusivity and ROFO agreements executed for exigent circumstances (such as fast-tracked negotiations) do not require separate Committee approval but are presented to the Committee for ratification, and that the allocation of CAISO Commercial Interest Points does not require Committee approval. • Expanding the list of authorized transaction types to include new products authorized by the CAISO and California Carbon Allowances used to meet CPA’s compliance obligations under California’s Cap-and-Trade program. • Other administrative cleanups, including new definitions, clarification on the measurement of hedge limits, and minor wording corrections.
This item will be discussed in detail at the June 24, 2026, Energy Committee meeting, where staff will seek recommendations to the Board of Directors on the proposed amendments.
Agenda Page 10
Executive Committee Item 3
The ERMP requires CPA representatives, including the Board, to sign on an annual basis and/or upon any revision, an acknowledgement of their responsibilities, duties, obligations, and compliance under the ERMP. Once ERMP amendments are approved, staff will request that the Board complete their annual acknowledgement forms via subsequent communication from the Clerk of the Board.
REGULAR AGENDA
The following items are recommended for inclusion on the Regular Agenda of the July Board meeting.
PPAs/ESAs and Amendments
Staff is in the process of negotiating a long-term contract from the 2025 Clean Energy and Reliability RFO, approved for shortlist by the Energy Committee. Should the negotiation be successful, the contract will be presented to the Board for consideration.
Approval of Contract Pricing Policy
This item will be subject to a separate presentation to the Executive Committee. 2026 Integrated Resources Plan
Under California statute (SB 350), the California Public Utilities Commission (CPUC) requires all Load Serving Entities, including CPA, to submit an Integrated Resource Plan (IRP) every two years (in practice, this cadence has often been extended). The IRP is a long-term planning filing that demonstrates a portfolio buildout capable of meeting CPUC-specified greenhouse gas (GHG) metrics from 2027–2045 and provides input to the CPUC for statewide resource planning. The IRP proceeding may also inform future CPUC procurement orders and support the CAISO transmission planning process.
The IRP is developed primarily using CPUC-provided inputs and assumptions. The IRP is not a procurement commitment and does not supersede CPA’s procurement governance. The IRP filing package includes: a narrative describing CPA’s long-term plans, Resource Data Templates (RDTs) providing detailed information on the modeled Agenda Page 11
Executive Committee Item 3
buildout, and the Clean System Power (CSP) tool used to calculate emissions for the portfolio.
The 2026 IRP filing due date is August 10, 2026, and CPA staff have been conducting the required analysis and refining assumptions and results through the spring and summer. Staff provided an IRP overview and preliminary results to the Energy Committee on May 27, 2026.
At the July Board meeting, staff will present an overview of the IRP process and preliminary modeling results and request that the Board delegate authority to the Energy Committee to approve CPA’s 2026 IRP submission at its July 22 meeting. This delegation is requested because the final IRP package will not be complete until later in July, while the filing is due in early August. Delegating approval to the Energy Committee ensures staff can complete its analysis, incorporate any Board feedback and finalize all the documents in time to meet the August 10 submission deadline. This approach is consistent with CPA’s past IRP cycles (2018, 2020, and 2022) and reflects Energy Committee’s technical focus and expertise to review and approve the final IRP materials.
Approval of Apartment Building Cooling Assistance Program PSA In order to advance efficient electric cooling options for multifamily buildings, CPA is taking a two-pronged approach. The first, through the Apartment Building Cooling Assistance (ABCA) program, will target small properties with easy to install measures such as room air conditioners and window heat pumps. The second is through incentive layering partnerships with existing Regional Energy Network's (REN) comprehensive multifamily upgrade programs which will target central heat pump heating ventilation and cooling (HVAC) and mini splits.
In March 2026, CPA released a Request for Proposals (RFP) seeking a vendor to provide property owner outreach and engagement, technical assistance, and rebate administration services to implement the ABCA Program. Should the negotiations be Agenda Page 12
Executive Committee Item 3
successful, the agreement will be presented for consideration at the July Board meeting, along with an overview of the program.
Additionally, CPA staff will be seeking approval for the Chief Executive Officer to execute Memoranda of Understanding (MOUs) with the County of Ventura and the County of Los Angeles RENs to enable CPA to layer incentive funds onto the RENs’ existing multifamily programs.
ATTACHMENT
1. Draft July 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, July 2, 2026
2:00 p.m.
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from June 4, 2026, Board of Directors Meeting
2. Approve USGBC-CA MOU
3. Approve Pastilla, Inc. PSA Amendment
4. Approve Bloom Ads Global Media Group PSA Amendment
5. Approve ERMP Amendments
6. Receive and File Bill Positions Monthly Report
7. Receive and File Monthly Community Advisory Committee Report
REGULAR AGENDA
Action Items
8. Approve & Authorize the CEO to Execute PPAs/ESAs and Amendments
9. Approve Contract Pricing Policy
10. Review 2026 Integrated Resources Plan and Delegate Approval Authority of CPA’s 2026 IRP to the Energy Resources & Planning Committee
11. Approval of Apartment Building Cooling Assistance Program PSA
COMMITTEE CHAIR UPDATES
MANAGEMENT REPORT
BOARD MEMBER COMMENTS
REPORT FROM THE CHAIR
ADJOURN – NO MEETING IN AUGUST. NEXT REGULAR MEETING SEPTEMBER 3, 2026 Agenda Page 14
Staff Report – Agenda Item 4
To: Executive Committee
From: Jennifer Giles, Strategic Accounts Executive
Reviewed by: Karen Schmidt, Senior Director, Rates and Strategy Nancy Whang, General Counsel
Approved By: Matthew Langer, Chief Operating Officer
Subject: Customer Contract Pricing Policy
Date: June 18, 2026
RECOMMENDATION
Recommend to the Board of Directors (a) the Adoption of the Customer Contract Pricing Policy and (b) an Option on the Scope of Board Approvals to Include in the Policy:
Option 1: All Contracts Must be Approved by the Board
Option 2: Contracts Above a Certain Gigawatt-Hour (GWh) Threshold Require Board Approval
Option 3: Option 1 or 2, but Exclude Customers Who Have Won the Direct Access (DA) Lottery from Board Approval
ATTACHMENTS
1. Customer Contract Pricing Policy Proposal Presentation
2. Draft Customer Contract Pricing Policy
Agenda Page 15
Customer Contract Pricing Policy
Proposal
June 18, 2026
Agenda Page 16
Executive Summary
2 CPA faces increasing opt-out risk from commercial customers seeking to enroll in Direct Access (DA)
o In 2026, CPA lost around 1,500 non-residential customer accounts to DA and staff expects a continued high level of interest in DA in coming years
A significant pool of large commercial customers want high levels of renewables at predictable and/or fixed rates for 2-10 years
CPA is in a unique position to offer high levels of renewable energy to these customers, something SCE and DA providers can't always offer Keeping existing large customers – or attracting new ones – who provide a margin helps CPA’s financial position which translates into rate stability and covering operating expenses over time
Based on feedback from the Board in March 2026, staff has developed a draft Customer Contract Pricing Policy to set parameters under which a customer could enter into a custom pricing contract with CPA under specified terms
Staff is seeking the Executive Committee’s feedback and recommendations prior to presenting the policy to the Board for approval
Agenda Page 17
Draft Customer Contract Pricing Policy
3 The draft Policy sets parameters under which a customer could enter into a custom pricing contract with CPA under specified terms
Key proposed elements:
o Eligibility: Non-residential customers who have won the Direct Access lottery and/or have not been a CPA customer for at least three years. Minimum 1 gigawatt-hour (GWh) of eligible load o Feasibility Study: If a customer meets eligibility requirements and provides historical and forecasted load data, CPA will conduct a financial analysis to determine whether contract pricing would be cost effective
o Pricing (modelled in feasibility study): Contract pricing will be set to recover the accounts’ cost of service including CPA’s targeted contribution to margin, but in no event a margin of less than 2% of total contract revenue over the duration of the term (see next slide) o Contract Term: 2-10 years; damages for early termination o Program Participation Cap: 400 GWh (~3.5% of CPA’s total load) o Customer Load Cap: 100 GWh (one current customer reaches that threshold) o Customer Confidentiality: Contract would allow disclosure of name and basic load info o Energy Product: See next slide
o Board Approval and Reporting: Need feedback
Agenda Page 18
Pricing and Product Content Options
4 Pricing would be customized based on customer’s actual load/cost profile and customer objectives, while maintaining CPA’s targeted margin
Pricing options include, but are not limited to:
o Fixed Rate: rate calculated based on CPA costs, fixed for the contract term o Fixed Comparison: rate adjusted annually to ensure a targeted comparison with SCE over the contract term
o Other pricing approaches: could be considered based on customer interest (e.g., day-ahead pricing exposure, virtual PPAs) as long as CPA’s financial and risk management objectives are met
Product content offered under the Policy is designed to be consistent with CPA’s mission to be a leader in clean energy
The draft policy offers customers three product content options:
o 100% renewable energy
o 100% carbon-free with at least 60% renewable energy
o Custom product that steps up over time to reach 100% renewable or carbon-free energy by the final year of the term and matches or exceeds Clean Power renewable energy content each year
Agenda Page 19
Board Approval and Reporting Options
5 Contracts above the proposed caps as well as contracts that don’t meet other policy parameters would require Board approval
Question for feedback: should the policy delegate authority to the CEO to approve contracts below a certain size, with appropriate reporting requirements? o Option 1: All contracts must be approved by the Board. o Option 2: Contracts above a certain GWh threshold require Board approval. o Option 3: Option 1 or 2, excluding customers who have won the DA lottery who would not require Board approval to ensure CPA can act quickly to retain those customers.
Agenda Page 20
Board Approval and Reporting Options
6 Potential Board approval thresholds under Options 2 and 3 o 5 GWh: Top 150 customers/top 15 DA lottery winners in 2026 Examples: restaurants, grocery, gyms, pharmaceutical companies, medical facilities, banks, hotels, small manufacturing, retail, bakeries, colleges
o 10 GWh: Top 50 customers/top 8 DA lottery winners in 2026 Examples: cities, media companies, state agencies, water agencies, large school districts, large commercial and industrial
o 20 GWh: Top 20 customers/top 2 DA lottery winners in 2026.
Examples: federal agencies, counties, large cities, telecom, oil/gas companies Reporting
o Under option 1, ongoing reporting would not be strictly necessary since all contracts would be seen by the Board, but could be implemented if the preferred o Under options 2 and 3, the Board would receive quarterly reports on program participation, including customer names, load, etc.
Agenda Page 21
The Claremont Colleges
7 Staff is in discussion with the Claremont Colleges who opted out during mass enrollment in 2019 and is interested in contract pricing for 100% renewable energy to meet its environmental and sustainability goals
Annual load would make them a top 10 customer
Contract would be a 3-year initial term with the option to renew for two more 3-year terms
Contract rate would be a fixed price premium to SCE generation rates for 100% Green Power, with a 2% forecasted contribution to CPA margin over the life of the contract.
Approach has been approved by Claremont Colleges administration1 and draft contract is undergoing legal review
Staff expects to seek approval of the Claremont Colleges contract alongside the Policy in July
1See article in Claremont Colleges student newspaper: https://tsl.news/5cs-to-switch-to-100-renewable-electricity/ Agenda Page 22
Action Requested and Next Steps
8 Action Requested
Recommend to the Board of Directors (a) the Adoption of the Customer Contract Pricing Policy and (b) an Option on the Scope of Board Approvals to Include in the Policy:
o Option 1: All Contracts Must be Approved by the Board o Option 2: Contracts Above a Certain GWh Threshold Require Board Approval o Option 3: Option 1 or 2 but Exclude Customers Who Have Won the DA Lottery from Board Approval
Next Steps
Depending on the Executive Committee’s feedback and recommendation, staff would present the Customer Contracting Policy for approval alongside the Claremont Colleges Contract in July
Agenda Page 23
Appendix
Agenda Page 24
Background on Direct Access
10 Direct Access (DA) is a program that allows non-residential customers to procure their own power. o DA participants can enroll with an Energy Service Provider (ESP) to meet their energy needs o ESPs must follow requirements similar to CCAs, such as meeting Resource Adequacy, Renewable Portfolio Standard, Integrated Resource Planning, and other statewide requirements o ESPs typically offer DA customers contracts to serve their load for a fixed period of time and DA customers can switch amongst ESPs or migrate back to a CCA or IOU when their contracts run out o DA rates are frequently customized by load profile and allow flexibility for different pricing structures, customers’ risk appetite, and desired energy mix
As part of California's energy restructuring, the Legislature adopted DA in 1996 and it was first implemented in 1998 o DA was partially suspended during the 2001 energy crisis and later reopened with a cap that was increased by the legislature in 2021 from 13% of IOU load to the current 15.4% Open cap space, if any, is allocated by a lottery run annually by each IOU that customers, even if they are served by a CCA, can choose to enter
o Cap space can open up if a customer migrates from DA to CCA, DA to IOU or if a DA account closes In recent years, SDG&E and PG&E have reached their caps, while SCE has had open cap space o SCE has lower rates than the other IOUs, making it more difficult for DA to be competitive o High short-term market prices in the last several years have made new DA contracts less competitive In 2026, interest in the SCE DA lottery increased due to lower market costs o Around 2000 CPA accounts were eligible to sign DA contracts this year and around 1500 left CPA To date, CPA has not had an offering to directly compete with DA beyond standard CPA rates, although customers have approached CPA over the years seeking customized rate options either to directly compete with DA or for other reasons Agenda Page 25
DRAFT
Policy Title Customer Contract Pricing
Policy Number 2026-XX Effective Date Original: XX/XX/2026 I. Purpose
The purpose of this Customer Contract Pricing Policy (Policy) for non-residential customers is to retain existing customers, acquire new customers, and expand customer access to renewable energy to contribute to Clean Power Alliance of Southern California’s (CPA) financial, environmental, and other policy objectives.
The Policy, as set forth herein, establishes a process for offering customized rates to certain non-residential customers at CPA.
II. Process for Applying for Customer Contract Pricing
A. Minimum Qualifications
To be eligible to be evaluated under II.B., below, customer account(s) must meet the following minimum criteria, individually or collectively:
1. Be on a non-residential rate schedule;
2. Be eligible for CPA service;
3. Either (a) have been opted out of CPA service for at least three years prior to customer’s inquiry with CPA; or (b) be an active CPA account that has been selected in the most recent SCE Direct Access lottery and which the account holder is considering opting out of CPA service to Direct Access within one year;
4. A customer account or combined customer accounts, if multiple accounts are requested to be considered, must have a projected aggregate annual load of at least one (1) gigawatt-hour (GWh) but not greater than 100 GWh to be evaluated.
5. Only customer accounts meeting the Minimum Qualifications as specified in Section II.A.1-4, herein, may participate under the Policy. Customer accounts owned by the same customer that do not meet the Minimum Qualifications may not participate.
B. CPA Feasibility Study
Once CPA determines that a customer qualifies under Section II.A., CPA will conduct a financial analysis to determine whether contract pricing would be cost Agenda Page 26
effective for CPA and, if so, what rate CPA can offer for the applicable customer accounts that achieves the targeted contribution to margin, per section IV.A.1.
1. Interested customers must provide historical load data and estimated future load in a form agreeable to CPA in order for CPA to initiate the study.
2. Upon receipt of the data specified in II.B.1, above, CPA shall complete the study.
C. Eligible Customers
If a customer meets criteria under the Feasibility Study, CPA and customer can enter into contract negotiations.
D. Other Requirements
In order to enter into an agreement, an eligible customer must agree to periodic electricity load assessments. Significant load growth or reduction at the time of the assessment may be subject to contract rate/pricing adjustments, as further specified in the agreement. Customers must also consent to provide information that will allow CPA to meet its reporting obligations as specified in Section VI.
III. Delegation of Authority
The Board of Directors delegates to the Chief Executive Officer (CEO) the authority to negotiate and execute contracts that meet the conditions prescribed in Sections IV and V of this Policy, provided that Contracts above [10] GWh of annual load require individual Board approval. In the event of a Vacancy, as defined herein, the CEO may appoint the Chief Operating Officer (COO) to act on the CEO’s behalf or if no designee is selected, the COO 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.
IV. Conditions for Delegated Authority
A. Pricing
1. Any negotiated price must recover the accounts’ cost of service, which includes CPA’s targeted contribution to margin, but in no event a margin of less than two (2) percent of projected total contract revenue, over the duration of the Term.
2. Available customized pricing structures include:
a. Fixed Rate – flat or escalated generation rate;
b. Fixed Comparison – fixed comparison to (i) the SCE total billed rate or (ii) certain SCE rate components for the term; or,
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c. Other pricing approaches (e.g. hourly day-ahead pricing, virtual PPAs, or a combination of approaches).
B. Energy Product Delivered
Contracts will specify the renewable energy content to be delivered over the duration of the contract term consistent with the following options:
1. CPA’s 100% Green Power product;
2. 100% carbon-free energy custom product with at least 60% renewable energy; or
3. A custom product that steps up over time to reach 100% renewable or carbon-free energy by the final year of the term and matches or exceeds CPA’s Clean Power product renewable energy content, but in no case less than 60% renewable energy, each year.
C. Customer and Program Caps
Individual customer participation in Contract Pricing is capped at 100 GWh of annual load and must be at least one (1) GWh of annual load. Total load served across all customers under Contract Pricing is capped at 400 GWh per year.
D. Term
The term of Contract Pricing agreements must be at least two (2) years and not more than ten (10) years in duration.
E. Billing Mechanism
Contract rate customers are billed through CPA’s billing agent, and charges are presented on their SCE statements. Depending on the contract terms, true ups may be required during the contract term.
F. Participation in other Programs
Unless otherwise specified in the Contract Pricing agreement, customers served by CPA with a contract rate can concurrently participate in other CPA and SCE Programs for which they are eligible.
V. Program Terms and Conditions
Section IV contains the minimum general terms and conditions that must be included in a Customer Contract Pricing contract (“Material Terms”). Any terms that do not meet these Material Terms must be brought to the Board for approval.
The negotiation and agreement of any terms that are not Material Terms, such as terms for contract extension or renewal, adjustments to load or pricing, early contract Agenda Page 28
termination, damages, and other items as needed and reasonable based on the customer’s individual requirements and circumstances, are delegated pursuant to Section III.
VI. Board Reporting
The CEO shall report on a quarterly basis the customers participating under the Policy, length of contracts, annual load, and energy products.
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