Energy Planning & Resources Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, September 23, 2026
12:15 p.m.
Visit CPA’s YouTube Channel to watch a Live Stream of the Meeting *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:
City of Oxnard Service Center 1
East Conference Room
214 South C Street
Oxnard, CA 93030
Alhambra City Hall
Conference Room A
111 S. First Street
Alhambra, CA 91801
West Hollywood City Hall
3rd Floor Conference Room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
LA County Sanitation District
Conference Room A
1955 Workman Mill Road
Whittier, CA 90601
Westin Anaheim Resort
Business Center
1030 W Katella Avenue
Anaheim, CA 92802
Manhattan Beach City Hall
City Manager Conference Room
1400 Highland Avenue
Manhattan Beach, CA 90266
1 Foster Place
North Oaks, MN 55127
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• 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.
Agenda Page 1
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CALL TO ORDER & ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the July 22, 2026, Energy Committee Meeting
2. Receive and File August 2026 Risk Management Team Report
REGULAR AGENDA
3. Oral Update from the Vice President of Power Supply
4. Approve the 2026 Clean Energy and Reliability RFO Shortlist and Waitlist as Recommended by the RFO Review Team
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING OCTOBER 28, 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: Energy Planning & Resources Committee
Subject: Approve Minutes from the July 22, 2026, Energy Committee Meeting
Date: September 23, 2026
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
Energy Planning & Resources Committee Item 1
MINUTES
Energy Planning & Resources Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, July 22, 2026, 12:15 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:
Manhattan Beach City Hall
City Manager Conference Room
1400 Highland Avenue
Manhattan Beach, CA 90266
Clean Power Alliance Office
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Alhambra City Hall
Conference Room A
111 S. First Street
Alhambra, CA 91802
LA County Sanitation District
Conference Room A
1955 Workman Mill Road
Whittier, CA 90601
West Hollywood City Hall
3rd Floor Conference Room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
City of Oxnard Service Center 1
East Conference Room
214 South C Street
Oxnard, CA 93030
CALL TO ORDER & ROLL CALL
Chair Maloney called the meeting to order at 12:24 p.m. Annie Mendoza, Deputy Clerk of the Board, conducted roll call.
ROLL CALL
Alhambra Jeff Maloney Chair Remote
Carson Reata Kulcsar Committee Member Remote
La Cañada
Flintridge
Stephanie Fossan Committee Member Remote
Manhattan Beach David Lesser Committee Member Remote
Oxnard Kathleen Mallory Committee Member Remote
South Pasadena Diana Mahmud Committee Member Remote
Temple City Ed Chen Committee Member Remote
West Hollywood Chelsea Byers Committee Member Remote
All votes are unanimous, unless otherwise stated.
Agenda Page 4
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the June 24, 2026, Energy Committee Meeting
2. Receive and File June 2026 Risk Management Team Report Motion:
Second:
Vote:
Committee Member Mahmud, South Pasadena
Committee Member Chen, Temple City
The consent agenda was approved by a roll call vote, with an abstention from Committee Member Lesser on Item 1.
REGULAR AGENDA
3. Approve CPA’s 2026 Integrated Resource Plan (IRP) Filing Package for Submission to the California Public Utilities Commission by the Filing Deadline in a Form Substantially Similar to the Attached IRP
Matt Langer, Chief Operating Officer, introduced the item, noting that the Committee has reviewed the Integrated Resource Plan twice. The current draft includes the Board’s feedback from its July meeting. The Board authorized the Energy Committee to approve the plan that each load-serving entity must file to meet the 2045 clean energy and emissions targets. It comprises a narrative, a resource data template, and a clean system power document, all due by August 10, 2026. Mr. Langer noted that Anthony Boukarim, Resource Planner, Power Supply, was available to answer questions.
Committee Member Mahmud inquired about GHG emissions dropping significantly from 2030 to 2035, and Mr. Boukarim responded that staff entered emission numbers provided by the CPUC into the clean system power tool and generated charging and discharging profiles for battery storage to minimize emissions. The slight increase from 2035 to 2040 is attributable to load growth.
Committee Member Lesser asked whether the CPUC has ever rejected an IRP and on what grounds, and Mr. Langer responded that CPA’s plans have always been accepted, adding that other agencies have had their documents returned for correction because they didn’t follow directions or use the suggested assumptions.
Committee Member Kulcsar praised staff for their work in ensuring emissions remain below the GHG benchmarks set by the State. She also inquired about CPA’s explanation of hydro generation risks and how increasing solar and wind production would be mitigated. Mr. Boukarim stated that hydro makes up a very small percentage of CPA’s portfolio, adding that California imports hydroelectric power from the Pacific Northwest. However, as those source areas increase their decarbonization, hydropower will be retained locally to meet renewable energy targets. Chair Maloney complimented staff for meeting all targets. Committee Member Mahmud added that CPA’s assumptions are reasonable and data is accurate.
Motion:
Second:
Vote:
Committee Member Mahmud, South Pasadena
Committee Member Lesser, Manhattan Beach
Item 3 was approved by a roll call vote.
Energy Planning & Resources Committee Item 1
Agenda Page 5
4. 2026 Clean Energy and Reliability RFO Longlist Overview John McNamara, Senior Director, Structured Contracts, stated that CPA received 100 compliant proposals for the 2026 Clean Energy and Reliability RFO. The majority received were for either Standalone Storage or Renewable Generation + Storage. CPA received 27 Long-Duration Energy Storage (LDES) offers that may be used to meet the new CPUC Procurement Order. There were 33 proposals that requested Fast-Track consideration. Mr. McNamara noted that renewable generation prices are higher and more volatile than last year’s RFO but storage prices continue to stabilize and drop.
Mr. McNamara explained that the purpose of this RFO is to solicit long-term contracts, reducing the need to procure products such as Resource Adequacy (RA) and renewable energy in volatile short-term markets. CPA has implemented several changes to the RFO protocol this year, including increased focus on Clean Firm Resources and LDES to support compliance with CPUC’s procurement order.
A new product category has been introduced called “RPS Generation or Storage Paired with an Existing CPA Resource.” It encourages the development of co-located projects that leverage existing contracted resources and interconnection capacity. Staff has revised project eligibility requirements, including reducing maximum project size limits across most product categories to better align procurement volumes, manage risk, and improve portfolio flexibility.
Mr. McNamara broke down the offers by product and technology type, and by size, commenting that large-scale projects are popular. He presented an overview of reduced emissions thermal toll offers. Staff is performing due diligence on proposals, conducting valuations, and the results will be presented to the RFO Review Team and Energy Committee in September. A shortlist and waitlist will be presented to the Energy Committee for consideration. The Board will consider PPAs from November 2026 to March 2027.
Committee Member Mahmud inquired about the lack of geothermal proposals and asked for confirmation that CPA has met its minimum requirement. Staff responded that CPA met its midterm reliability compliance through past procurement and that there are ways to meet the new Clean Firm Resources requirement through geothermal or biomass. She also asked whether SB 1383 has spurred new biomass resources, and staff stated that some shutdown facilities are being repowered and using fuel stock from burned or diseased forests in the Sierras. CPA can now use LDES to meet compliance.
Committee Member Mahmud asked if transmission access is an impediment to geothermal, and staff responded that those resources are early in the development pipeline and are not in the interconnection queue yet. Staff clarified the status of four projects shortlisted from last year’s RFO for the Committee, stating that one was withdrawn, due diligence is being conducted on another, the third is pending, and the fourth, Rexford II, was executed. Responding to Committee Member Mahmud’s question about the two pending offers, staff said they remain pending for various reasons and are evaluating whether they would be a good deal for CPA.
Committee Member Mahmud noted that the consolidation of pricing in standalone storage and co-located projects indicates a maturing market, and staff stated that storage projects, unrelated to renewable energy, still qualify for tax credits, and that results in less volatility.
Energy Planning & Resources Committee Item 1
Agenda Page 6
Staff confirmed for Committee Member Kulcsar that this RFO limited eligibility to Queue Cluster 14, and there are no new-build geothermal projects in that cluster.
Committee Member Kulcsar inquired about the Innovation Solicitation RFO and its timeline, asking if biomass projects could bid during that process. Staff responded that it has already been launched and offers are due December 14, 2026. Staff further explained that with biomass and geothermal, CPA has to proactively look for those projects as developers may not submit formal bids. They typically will become bilateral offers and may be incorporated into the Clean Energy and Reliability review process. Projects involving a re-started natural gas facility would not meet the criteria for Innovation Solicitation.
COMMITTEE MEMBER COMMENTS
Committee Member Mahmud complimented Chair Maloney on presiding over his first meeting as Chair.
Committee Member Kulcsar asked staff to include a map of all of CPA’s energy sources in the Integrated Resource Plan.
ADJOURN
Chair Maloney adjourned the meeting at 1:12 p.m.
Energy Planning & Resources Committee Item 1
Agenda Page 7
Staff Report – Agenda Item 2
To: Energy Planning & Resources Committee
From: Lyon Hardgrave, Director, Energy Risk Management
Approved By: Ted Bardacke, Chief Executive Officer
David McNeil, Chief Financial Officer
Subject: Receive and File August 2026 Risk Management Team Report Date: September 23, 2026
August 2026 RMT REPORT
Key Actions
• Reviewed the counterparty credit exposure summary
• Reviewed May 2026 day-ahead load forecast performance • Reviewed 2026 - 2030 energy position recommendations
• Reviewed 2026 - 2030 Renewable and Carbon-Free positions • Reviewed PCC1 purchase and sales strategy
• Reviewed CF purchase and sales strategy
• Reviewed the 2026 Voluntary Allocation update
• Reviewed Sunzia generation and Solar Star test energy forecast • Reviewed 2026 - 2028 slice of day RA position
• Reviewed RA purchase and sales strategy
• Reviewed Energy Risk Management Policy (ERMP) compliance for RA, REC, CF, and Energy
• Reviewed Long-Term Energy Contract amendments and terminations • Reviewed August 2026 CRR Allocations
• Reviewed the Negative REC Price strategy
• Previewed the 2026 Clean Energy and Reliability RFO
Agenda Page 8
Energy Planning & Resources Committee Item 2
Policy Compliance
Policy Deviation Required Action
The renewable energy hedge ratio exceeds
the maximum hedge percentage for 2027-
2031 due to cumulative PPA supply
additions, a reduction in the load forecast,
and updates to product content strategy that
reduced Clean Power RE targets in 2027-
2030.
None.
The deviations for 2027-2031 will be
resolved as CPA nears these years and
the maximum hedge percentages
increase.
The energy hedge position exceeds the
maximum hedge percentage limit in May
2029, February through May 2030, March
through May 2031 and 2032, and each
March from 2033-2034. These deviations
arise from CPA continuing to enter into long-term contracts for renewable energy consistent with its objective to reduce
exposure to the short-term renewable
energy market and from July 2026
amendments to the ERMP which require
monthly (formerly quarterly) measurement of
energy hedge positions.
None.
The deviations for 2029-2034 will be
resolved as CPA implements its energy
hedge program, and as the electricity
production period nears and
corresponding policy hedge limit
maximums increase.
ATTACHMENT
None.
Agenda Page 9
Staff Report – Agenda Item 3
To: Energy Planning & Resources Committee
From: Lindsay Descagnia, Vice President, Power Supply
Subject: Oral Update from the Vice President, Power Supply Date: September 23, 2026
The VP will provide an oral report on CPA energy procurement activities.
Agenda Page 10
Staff Report – Agenda Item 4
To: Energy Planning & Resources Committee
From: David Potovsky, Senior Advisor, Structured Contracts John McNamara, Senior Director, Structured Contracts
Reviewed by: Lindsay Descagnia, Vice President, Power Supply Matthew Langer, Chief Operating Officer
Nancy Whang, General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Clean Energy and Reliability RFO Shortlist and Waitlist Date: September 23, 2026
RECOMMENDATION
Approve the 2026 Clean Energy and Reliability RFO shortlist (slide 22) and waitlist (slide 23) as recommended by the RFO Review Team.
ATTACHMENTS
1. 2026 Clean Energy and Reliability RFO Shortlist and Waitlist Approval Presentation Agenda Page 11
2026 Clean Energy and
Reliability RFO
Shortlist and Waitlist
Approval
Energy Committee
September 23, 2026
Agenda Page 12
On June 29, CPA received 100 compliant proposals for the 2026 Clean Energy and Reliability RFO (RFO) Staff has established Renewable Energy (RE) and Resource Adequacy (RA) procurement targets for this RFO; these overlap with compliance obligations from the 2026 CPUC reliability Procurement Order (D.26- 02-057)
There are enough viable projects proposed in this RFO for CPA to meet or exceed procurement targets and meet procurement order requirements
On September 8th, a Review Team composed of four Energy Committee members and CPA Staff including the CEO, COO, and VP of Power Supply met to produce a shortlist and waitlist recommendation. The purpose of today’s presentation is for Energy Committee to consider the Review Team’s recommendations.
The shortlist recommendation meets and exceeds both the RE and RA procurement targets and:
Includes hard-to-source biomass, supporting current and future compliance requirements Secures Renewable generation plus Storage before solar tax credits expire Adds Long Duration Energy Storage (LDES) to meet the Procurement Order cost effectively Adds a natural gas toll paired with new-build battery storage that will provide dispatchable energy and baseload RA while reducing overall emissions from the gas plant
2 Executive Summary
Agenda Page 13
Requested Action
3 Approve the 2026 Clean Energy and Reliability RFO shortlist (Slide 22) and waitlist (Slide 23) as recommended by the RFO Review Team.
Agenda Page 14
Agenda
Background
Offer Overview
Shortlist Proposal (Slide 22)
Waitlist Proposal (Slide 23)
Appendix
Agenda Page 15
4 Background
Agenda Page 16
• Staff presents confidential valuation results to RFO Review Team • Review Team meets to develop shortlisting approach and recommended shortlist for Energy Committee consideration RFO Process
• Shortlisted bidders are invited to enter exclusivity
• Negotiations begin for bidders in exclusivity
• Intake all offers in partnership with Ascend Analytics • Perform quality control (QC) on all offers
• Perform valuation and enter into negotiations with fast-track candidates • PPAs brought to full Board for approval on a rolling basis • Announce RFO to market
• Recommended shortlist presented to Energy Committee for approval • Confidential information is removed
Agenda Page 17
6 2026 Clean Energy and Reliability RFO Overview
The purpose of the 2026 Clean Energy and Reliability RFO is to solicit competitive proposals to fill a portion of CPA's portfolio needs with long-term contracts, reducing the need to procure products such as RA and RE in volatile short-term markets CPA solicited for the same product categories as prior year’s RFOs, and contract start dates now range from January 1, 2029 to December 31, 2033 to best align with CPA’s portfolio needs. To support compliance with CPUC Procurement Order D.26-02-057, this RFO has an increased focus on Clean Firm Baseload Resources and LDES Similar to the 2025 RFO, the 2026 RFO has a ‘fast-track’ path that allows CPA to start negotiations on high-value projects before CPA’s Energy Committee considers the Review Team’s shortlist recommendation. CPA fast-tracked three projects. Two have been included as part of the shortlist recommendation
Agenda Page 18
7 Procurement Targets are developed using a ratable procurement strategy, meaning CPA would need to procure equivalent volumes over the next three years to meet its procurement goal and fill 95% of its Renewable Energy position and 80% of RA position with long-term contracts Compliance with D.26-02-057 can be achieved with Clean Firm Baseload Resources (biomass/geothermal) or LDES (≥8 Hour energy storage) or a combination of the two 8 RFO Procurement and Compliance Targets
Renewable Energy
(MWh) Resource Adequacy (MW)
2026 Ratable Procurement Targets 268,000 264
* MWs procured under CPUC Order D.26-02-057 are included in 2026 procurement target for Resource Adequacy Compliance Requirement Obligation Online Date Procurement Options CPUC Procurement Order
D.26-02-057
89 MW Net Qualifying
Capacity (NQC)* 6/1/2032 1) 89 MW Biomass, and/or2) 150 MW 8 Hour Storage Agenda Page 19
Renewable Energy Position Overview
9 Staff has developed procurement targets for three distinct product categories: Renewable Energy, RA and CPUC Procurement Order D.26-02-057
Decisions in one category have an impact on each of the other categories, overall targets, and the long-term portfolio For example: Meeting the RA target with a renewable baseload resource like biomass results in a short-term exceedance of the renewable energy target This creates the possibility of having a long Renewable Energy and energy position, exceeding ERMP limits in the near term
In the medium to long term, this could help fill large open positions for Renewable Energy in later years Short-term exceedances can be actively managed by incremental sales, though it can create price exposure to the short-term market
The open positions for Renewable Energy in CPA’s portfolio will increase significantly in the mid 2030’s.
The shortlist recommendation would meet the critical targets for RA but would also exceed CPA’s short-term needs for Renewable Energy.
Agenda Page 20
Shortlisting and Waitlist Approach
In forming its recommendation, the Review Team evaluated projects based on the criteria specified in the RFO Protocol (see appendices for details). Additional context regarding the Review Team’s evaluation is also provided below:
Environmental Stewardship and Project Location: Projects with low Environmental Stewardship scores or low Project Location scores were deprioritized
Quantitative Evaluation: RA projects were prioritized. Among those projects, higher RA Normalized Net Present Value (NPV) were prioritized above those with lower RA Normalized NPV Tax Credits: The Review Team considered whether procuring above this RFO’s Renewable Energy procurement target is warranted in anticipation of dwindling opportunities to secure projects that are eligible for tax credits in future RFOs Compliance with CPUC Procurement Orders: The review team placed an emphasis on projects that meet compliance obligations for both CPUC Mid-Term Reliability and Procurement Order D.26-02-057 Baseload Equivalent RA: Given the RA accounting rules governing Slice of Day, projects that provide 24/7 energy and/or long duration storage were prioritized
Considering the multiple challenges related to building a portfolio around CPUC compliance obligations, the uncertain future of tax credits and Slice of Day RA requirements, the Review Team is recommending a shortlist that is greater than the ratable procurement targets established for the 2026 Clean Energy and Reliability RFO Given the uncertain nature of contract negotiations, the Review Team also recommends a waitlist of projects to use as backup in case projects on the shortlist should become unavailable Agenda Page 21
10 Offer Overview
Agenda Page 22
11 RFO Offer Overview
Summary Stats
Number of conforming offers 100
Number of bilateral offers 4
Number of offers with Full Capacity Deliverability
Status (FCDS) 81
Number of sellers submitting offers 37
Counties spanned by submissions 25
States represented by offers 3
Number of new facility offers 93
Number of existing facility offers 11
Number of offers with CPUC-eligible LDES (8-
hour duration) 26
Local Projects 22
Bundled Offers 9
Fast-Track Requests 33
Earliest online date 1/1/2029
Latest online date 12/31/2033
Product Type Total Local
Standalone Storage 51 16
RA-only 19 6
RPS + Storage 18 0
RPS only 9* 0
RPS Generation or Storage
Paired with an Existing CPA
Resource
0 0
PCC1 Energy
(Fixed or Index Plus) 5 0
Tolls (Dispatchable Gas) 2 0
Total 104* 22
12 *Count includes 4 bilateral proposals for biomass facilities. All were included in this RFO valuation.
Agenda Page 23
Fewer than 50% of Offers are NPV Positive vs 60% in 2025 RA Normalized NPV ($/Average MW RA)
$0 NPV
Agenda Page 24
13 Standalone Storage is the Highest Value by Technology when Procuring RA
$0 NPV
Agenda Page 25
14 Renewable Generation + Storage is the Highest Value by Technology When Procuring Renewable Energy
15 $0 NPV
Agenda Page 26
Shortlist and
Waitlist
Recommendation
Agenda Page 27
Shortlist and Waitlist Summary
Shortlist
Resource Type Project
Count
Generation
(MW)
Storage
(MW) MWh/Yr Reduction in RA MW Target
Renewable Generation +
Storage 1 100-200 100-200 ~320,000 ~50
Renewable Generation 3 30-150 NA ~550,000 ~60
Standalone Storage 2 NA 150-350 NA ~135
Existing Dispatchable
Gas + Storage (with RA) 1 100-200 100-200 0 ~130
Total 7 230-550 350-750 870,000 ~375
Waitlist
Resource Type Project
Count
Generation
(MW)
Storage
(MW) MWh/Yr Reduction in RA MW Target
Renewable Generation
+ Storage 1 0-100 0-100 70,000 ~10
Standalone Storage 1 NA 0-150 NA ~50
Total 2 0-100 0-250 70,000 ~60
The Review Team presentation included two
competitively priced five-year RA-only natural
gas proposals. Because these short-term
contracts are within the CEO’s execution
authority under the ERMP, they have been
excluded from this shortlisting request
The recommended shortlist contains one solar
plus storage project, two long-duration battery
energy storage projects, 3 biomass generation
projects and one natural gas toll paired with
battery energy storage
The three biomass projects on the shortlist are
in the 4th NPV quartile but provide valuable
baseload RA to meet Slice of Day (SOD)
requirements and would help meet CPUC MTR
and/or D.26-02-057 procurement obligations
The recommended waitlist consists of one
solar plus storage project, and one long-duration battery energy storage project Agenda Page 28
17 Full Toll Thermal Contracts with Storage
(Energy + RA)
18 Natural gas fired generation resources are eligible for this RFO as long as they are paired with an emission reducing element like a battery energy storage system (BESS) or utilize blended fuels (green hydrogen or renewable biogas)
Under this full toll contract, CPA will receive all of the benefits associated with the facility including energy, RA and Ancillary Services (AS) and CPA will have the ability to control the dispatch of the facility
Adding storage to existing thermal resources can reduce the amount that the thermal resources are dispatched, leading to lower GHG and emissions that impact local air quality Thermal ”peaker” plants are typically used infrequently (<10% of hours in a year) in stressed system times and often are needed for less than 1 hour at a time.
A one-hour or two-hour battery can run instead of the peaker during the shortest dispatches, providing the same reliability benefit with fewer emissions Agenda Page 29
Thermal Projects with Storage
19 One of the two full-toll Thermal with Storage projects received a favorable economic valuation, and the Review Team has recommended it for shortlisting
The benefits from the facility include:
The project will provide valuable baseload RA and is a cost-effective way of meeting CPA’s Slice of Day RA obligations, plus energy hedge value via the full toll
The proposed addition of the energy storage system will result in a significant reduction of the plant’s historic GHG emissions, ensuring a resource that will continue to operate for many years does so under cleaner operations
Projects Highlights:
Low annual generation with planned emissions mitigation by the storage Historical capacity factors of less than 2% (average of 120 hours of operation for the entire year) Forecasted generation is less than 1% of Lean Power load in 2031 The storage reduces the emissions by more than 50% (from an average of 6,855 MT CO2e/year to 2,886 MT CO2e/year)
The Review Team considered the fact that this project could increase CPA’s GHG emissions very slightly but also reduce overall emissions from this plant by adding battery energy storage Agenda Page 30
CPA received bilateral offers for four repowered biomass projects and included them in the 2026 Clean Energy and Reliability RFO evaluation
Biomass resources can provide 24/7 renewable energy and baseload equivalent RA Three of the four projects received a favorable evaluation and will help CPA effectively meet established procurement and compliance targets
Projects Highlights:
Projects will provide baseload equivalent RA for SOD compliance Projects will generate round-the-clock energy that meets California’s Renewable Portfolio Standard (RPS) Projects are designated as Clean Firm Baseload and can help meet CPUC compliance obligations for both Mid Term Reliability (MTR) & Procurement Order D.26-02-057
The Review Team discussed the challenges that biomass plants have faced in the past including environmental/environmental justice concerns, emissions, waste byproduct management, permitting challenges and/or local opposition related to air quality issues and staff committed to evaluate these issues and conduct further due diligence on each plant during negotiations 20 Biomass
Agenda Page 31
To support compliance with CPUC Procurement Order D.26-02-057, the Review Team recommends shortlisting two standalone Long Duration Energy Storage (LDES) projects.
LDES projects are defined as projects that can discharge for at least 8 hours, providing extended grid reliability compared to conventional 4-hour storage resources.
Projects Highlights:
One of the projects has a signed interconnection agreement, secure FCDS and a high development score. This project ranks in the first quartile of NPV results.
The other project is local and earlier in its development cycle. The project would use the interconnection from an existing gas facility, thereby supporting the decommissioning of that facility. This project also ranks in the first quartile of NPV results.
21 Long Duration Energy Storage
Agenda Page 32
Shortlist Recommendation
22 Project
NPV
Qtr Online Project Type
MW Gen
Range
MW Storage
Range County
Environmental
Stewardship
Benefits to
DACs
Workforce
Development
Project
Location
Development
Score
A 1 2029 Renewable Generation +
Storage 100-200 100-200 Tulare Neutral High High Medium High B 4 2029 Renewable Generation 10-50 NA Madera High High High Medium Medium C 4 2029 Renewable Generation 10-50 NA Tulare High High Medium Medium Medium D 4 2029 Renewable Generation 10-50 NA Fresno High High Medium Medium Medium E 1 2031 Standalone Storage N/A 100-200 Ventura Low* Neutral High High Medium F 1 2030 Standalone Storage N/A 50-150 Colusa Neutral Medium High Medium High G 2 2030 Existing Dispatchable
Gas + Storage (with RA) 100-200 100-200 Riverside NA* Neutral* Medium* NA* Low** *Low environmental score is based on project being located on productive agricultural land. Overall project plan includes significant mitigation and restoration measures **Qualitative evaluation criteria is unique for existing gas toll projects. See appendix for detailed criteria Agenda Page 33
Waitlist Recommendation
23 Project
NPV
Qtr Online Project Type
MW Gen
Range
MW Storage
Range County
Environmental
Stewardship
Benefits to
DACs
Workforce
Development
Project
Location
Development
Score
A 3 2029 Renewable
Generation + Storage 0-150 0-150 Fresno Neutral High High Medium High B 2 2030 Standalone Storage NA 0-150 Los Angeles Neutral Medium High High High Agenda Page 34
Requested Action
24 Approve the 2026 Clean Energy and Reliability RFO shortlist (Slide 22) and waitlist (Slide 23) as recommended by the RFO Review Team.
Agenda Page 35
Next Steps
25 Item Date
Proposers notified of shortlist status September 24 - 30, 2026 Power Purchase Agreement (PPA) and Energy Storage
Agreement (ESA) brought to the Board for approval
December 2026 – March 2027
Agenda Page 36
APPENDIX
Agenda Page 37
Product Types and Eligibility
Product Types Description of Eligible
Resources
Term
(Years) Size (MW) 2 Earliest
Online Date
Latest Online
Date 3
Renewable Portfolio
Standard (RPS)
Generation Only
Solar, wind, geothermal, biomass, small
hydro (bundled with RA or energy-only) 10 to 201 15 to 150 January 1, 2029 December 31, 2033 RPS Generation +
Storage RPS generation paired with storage 10 to 20 15 to 150 January 1, 2029 December 31, 2033 RPS Generation or
Storage Paired with
Existing CPA Resource
RPS generation paired with storage where
one component is an existing CPA resource 10 to 20 15 MW up to the existing interconnection capacity January 1, 2029 December 31, 2033 Standalone Storage Standalone storage facilities with a minimum duration of at least 4 hours 10 to 20
15 to 100 (8hr)
15 to 150 (4hr)
January 1, 2029 December 31, 2033
Resource Adequacy (RA)
- Only
Offers from any technology for RA capacity
(no energy) 5 to 15 15 to 150 January 1, 2029 December 31, 2033 Blended or Hybrid Tolls
Natural gas facilities that reduce emissions
by converting to a blended fuel source and/or
adding battery energy storage
2 to 10 10 MW Minimum January 1, 2029 December 31, 2033 1 Term limits for Energy Only offers will be 5 to 20 years 2 The minimum size eligibility requirement for projects located within Los Angeles or Ventura county (excluding product type Blended or Hybrid Tolls) will remain at 5 MWs 3 Clean firm and LDES projects will have a latest online date of June 1, 2032 to align with the eligibility requirements for CPUC Decision D.26-02-057.
To reflect CPA’s needs this year, CPA has updated the project size and extended the latest online date to 2033 Agenda Page 38
27 Offer Locations are Concentrated
Los Angeles, Kern, Riverside and San Joaquin Counties were the dominant regions for Stand-Alone storage projects whereas renewable project development are more dispersed Agenda Page 39
28 Offers by Product and Technology Type
Solar and storage were the dominant technologies offered into this RFO. Two wind projects were offered. No geothermal or biomass resources were received Lithium-ion continues to dominant storage technology. Some sodium-ion and compressed air storage bids were received
Agenda Page 40
29 30
Large Scale Projects Are Popular
CPA received a healthy mix of project sizes in this year's RFO Ranked Offers by Offered Size (MW)
Agenda Page 41
Developers are Targeting Early Online Dates
The majority of online dates are in 2029, 2030, and mid 2031 Agenda Page 42
31 Storage Pricing is Less Volatile
Energy generation prices continue to increase but Stand-Alone Storage pricing is relatively stable and trending slightly downward
Agenda Page 43
32 APPENDIX:
Evaluation Scoring
for Renewable
Resources
Agenda Page 44
33 Evaluation Criteria
With the exception of natural gas tolls, projects are ranked using CPA’s standard criteria
34 Environmental
Stewardship
Workforce
Development
Quantitative
Evaluation
Development
Risk
Project
Location
Benefits to
DACs
Tariff & Tax
Credit Price
Adjusters
Agenda Page 45
Quantitative Valuation Approach
Since long-term procurement of both RECs and RA was targeted in this RFO, projects were valued using two metrics RA Normalized NPV: Net Present Value (NPV) per MW of Resource Adequacy (RA) MW. This ranking metric is more appropriate for projects that provide capacity attributes such as standalone storage, RPS + storage, and thermal projects Energy Normalized NPV: NPV per MWh of generated energy. This ranking metric is more appropriate for generation only projects.
Offers were categorized into first through fourth quartiles based on their NPV rankings (Q1-Q4) • PPA Energy Cost ($/MWh)
Energy price CPA pays the counterparty
• Storage Only: PPA Storage Cost ($/kW-month)
Capacity price CPA pays the counterparty
Benefits Costs
• Energy Revenue ($/kWh)
Earnings from selling energy generation from facility
• Resource Adequacy ($/kW-month)
Replaces RA CPA would otherwise have to purchase
• Renewables Only: Renewable Energy Credit (REC) ($/kWh) Replaces RECs CPA would otherwise have to purchase
• Storage Only: Ancillary Services (AS) ($/kWh)
Earnings from selling ancillary services
• Storage Only: Energy Revenue ($/kWh)
Earnings from selling energy (from discharging the battery) Value (NPV) = Benefits – Costs
Agenda Page 46
35 Development Risk
Projects will be ranked from high (good) to low (bad)
The development risk metric is a composite rank based on a number of factors impacting project risk:
o Site control
o Interconnection status
o Environmental screens
o Land use and permits
o Project financing
o Developer experience
Agenda Page 47
36 Environmental Stewardship
Projects are ranked high, medium, neutral, and low based on the following prioritization:
Demonstrates multiple benefits (provides additional societal, health, economic, water saving, or environmental benefits beyond the climate and GHG reduction benefits of renewable energy)
HIGH
Located in an area designated as a preferred renewable energy zone and received required land use entitlement permits
MEDIUM
LOW Project is located in a high conflict area
NEUTRAL Project does not demonstrate either preference or avoidance criteria Agenda Page 48
37 Workforce Development
Projects are ranked high, medium, and low based on the following prioritization:
The project will use targeted-hire, union labor, or multi-trade project labor agreements (including requirements for state-apprenticeship graduates) HIGH The project does not have a labor agreement, but can demonstrate prevailing wage, union labor, and targeted hire commitments MEDIUM The project does not demonstrate prevailing wage, union labor, and targeted hire commitments
LOW
Agenda Page 49
38 Benefits to Disadvantaged Communities
Projects are ranked high, medium, neutral, and low based on the following prioritization:
Located within a DAC and demonstrates DAC workforce and community development benefits HIGH
Project not located within a DAC but can demonstrate DAC benefits and has completed community outreach MEDIUM
LOW Project is inconsistent with community priorities
NEUTRAL Project does not demonstrate DAC benefits
Agenda Page 50
39 Project Location
HIGH In Los Angeles and Ventura counties
Other counties within California
Projects located within a Federally-designated energy community or on tribal lands with demonstrated community support (including outside of California)
MEDIUM
Projects outside of California not located in a Federally-designated energy community or on tribal lands without demonstrated community support LOW
Projects are ranked high, medium, and low based on the following prioritization:
Agenda Page 51
40 Tariff and Tax Credit Price Adjusters
CPA will consider the incremental reductions in contract price, identified in the Offer Form, if the Seller receives an Investment Tax Credit (ITC) or Production Tax Credit (PTC) above the proposer’s stated benchmark. Projects will be ranked based on the percentage decrease relative to the Contract Price offered at the benchmark ITC/PTC rate identified by the Proposer.
Tariff Price Adjusters: CPA will rank based on projects that minimize the percentage increase in Tariff Price Adjusters relative to the Contract Price.
Agenda Page 52
41 APPENDIX:
Natural Gas Tolls
Evaluation Criteria
Agenda Page 53
42 Toll Evaluation Criteria
CPA received tolling offers from natural gas facilities paired with battery energy storage Only offers that can demonstrate a plan for this cleaner alternative are eligible for participation in this RFO
CPA used the following criteria when evaluating these offers:
Workforce
Development
Quantitative
Evaluation
(Value)
Plan for
Transition to
Cleaner
Operations
Benefits to
DACs
43 GHG
Emissions
Agenda Page 54
Transition to Cleaner Operations
Projects are required to explain how their project will transition to cleaner operations in their Narrative document.
Agenda Page 55
44 GHG Emissions
45 CPA will forecast the expected generation and associated GHG emissions at a natural gas facility
CPA may receive offers from facilities that are very efficient and are expected to run frequently and offers from facilities that are less efficient and expected to run infrequently
CPA will use forecasted data to analyze a facility’s total GHG output and the facility’s efficiency and determine the effects such facility will have on CPA's Product Content Label and GHG emissions profile
This will be a quantitative measure, not ranked High, Medium, Low Agenda Page 56
Disadvantaged Community Impacts
Natural Gas resources will have differing impacts on DACs than renewable resources. Impacts to DACs will be assessed in conjunction with scoring in the three qualitative evaluation criteria; 1) impacts of the agreement on a transition to cleaner operations, 2) workforce development, and 3) GHG emissions Demonstrates DAC benefits, including transition to cleaner operations or retirement at the end of the contract term
HIGH
Project does not demonstrate additional DAC benefits, or is not located in a DAC
NEUTRAL
LOW Project is harmful or inconsistent with community priorities Agenda Page 57
46 Workforce Development
• CPA will use its traditional workforce development criteria with a slight modification to address existing facilities
The project is a union site or will use targeted-hire, union labor, or multi-trade project labor agreements (including requirements for state-apprenticeship graduates) HIGH
The project is not a union site or does not have a labor agreement, but can demonstrate prevailing wage, union labor, and targeted hire commitments MEDIUM
The project does not demonstrate prevailing wage, union labor, and targeted hire commitments
LOW
Agenda Page 58
47