Governing Board and Alternates
Chair: Jim Holmes, County of Placer
Vice Chair: Jeff Duncan, Town of Loomis
Alice Dowdin Calvillo, City of Auburn
Joe Fatula, City of Colfax
John Hidahl, County of El Dorado
Greg Janda, City of Rocklin
Suzanne Jones, County of Placer
Dan Karleskint, City of Lincoln
Michael Saragosa, City of Placerville
Alternate City of Colfax, David Ackerman
Alternate Town of Loomis, Jan Clark-Crets
Alternate County of Placer, Bonnie Gore
Alternate City of Lincoln, Paul Joiner
Alternate County of El Dorado, Lori Parlin
Alternate City of Rocklin, Joe Patterson
Alternate City of Auburn, Rachel Radell-Harris
Alternate City of Placerville, Dennis Thomas
The Pioneer Board Regular Session will be live streamed and can be accessed and viewed at the following web link: https://us06web.zoom.us/j/89967227073.
On October 4, 2021, the Pioneer Community Energy Governing Board determined that as a result of the COVID-19 state of emergency, meeting in person would present imminent risks to the health or safety of attendees at the meetings of the Board of Directors and all other legislative bodies of Pioneer Community Energy which includes all of its Board appointed Committees; and directed that the meetings of the Board of Directors and all other legislative bodies of Pioneer Community Energy be conducted pursuant to Government Code section 54953(e) (AB 361) and other applicable provisions of the Brown Act. And, on December 16, 2021, the Pioneer Community Energy Governing Board (1) reconsidered the circumstances of the state of emergency created by the COVID-19 pandemic and (2) determined the state of emergency continues to directly impact the ability of the members to meet safely in person.
In order to protect public health and the safety of our Placer and El Dorado County residents, the Public Comment for the Pioneer Governing Board Meeting will be offered through the Zoom platform. Public access to The Pioneer Governing Board Meeting will be entirely by remote audio/visual participation. Therefore, the meeting will be closed to in-person public participation.
Residents who wish to comment should be prepared to use the Zoom platform via computer or telephone. Public Comment will be opened for each agenda item in sequence.
How to Participate Using Zoom
You can join the meeting using the following link https://us06web.zoom.us/j/89967227073.
When you join the meeting, you will be muted by default. To inform the Clerk that you would like to make a public comment, you will use the “Raise Hand” feature.
Governing Board Agenda
January 20, 2022
Pioneer Community Energy Offices
2510 Warren Drive, Suite B, Rocklin, CA 95677
3:00 PM Regular Session
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COMMUNITY ENERGY
Public Comment via Computer or Smartphone
If you would like to make a comment, you will use the “Raise Your Hand” feature. Please note that you should only raise your hand during the item to which you will comment. Instructions for using the “Raise Hand” feature when using a computer or mobile device can be found at the link below:
https://support.zoom.us/hc/en-us/articles/205566129-Raising-your-hand-in-a-webinar Public Comment via telephone (Audio Only Option)
1. Dial 1 (669) 900-6833
2. When asked for the meeting ID, enter 899 6722 7073#
3. When asked for your participant ID, press # to continue You will be muted by default. To inform the Clerk that you would like to make a comment during each agenda item, dial *9 to “Raise your hand.” When it is your turn to speak, the clerk will identify you by the last three digits of your phone number, at that time dial *6 to unmute yourself and state your name and comment for the record. Please note that you should only raise your hand during the item to which you will comment. 3:00 PM Regular Session
I. GENERAL ADMINISTRATIVE FUNCTION – PART I
A. CALL TO ORDER
1. Roll Call
B. ANNUAL SELECTION OF OFFICERS
1. Elect a Chair and Vice Chair of the Pioneer Governing Board to for 2022 i. Selection of Chair of the Pioneer Governing Board for 2022 ii. Selection of Vice Chair of the Pioneer Governing Board for 2022 C. AGENDA APPROVAL
D. PRESENTATIONS BY THE PUBLIC ON MATTERS NOT ON THE AGENDA WITHIN THE JURISDICTION OF THE BOARD Persons may address the Board on items not on this agenda. Please limit comments to 3 minutes per person. According to State Law (the Brown Act), items must first be noticed on the agenda before any discussion or action. The Board is prohibited from discussing issues not on the agenda brought to them at this time.
II. CONSENT AGENDA
1) APPROVAL OF THE CONSENT AGENDA
All items on the Consent Agenda have been recommended for approval by the Executive Director. All Consent items will be approved by a single vote. Anyone may ask to address Consent items prior to the Board acting, and the item may be moved for discussion. a) ADMINISTRATION
Approve minutes of the December 16, 2021 regular meeting. (ACTION - ECKERT)
REGULAR SESSION
b) ADMINISTRATION
1) Determine pursuant to Government Code Section 54953(e)(1) that, as a result of the COVID-19 state of emergency, meeting in person would present imminent risks to the health or safety of attendees at the meetings of the Board of Directors and all other legislative bodies of Pioneer Community Energy (PCE), including all of the Board-appointed Committees; and
2) Direct that the meetings of the Board of Directors and all other legislative bodies of PCE be conducted by teleconferencing pursuant to Government Code 54953(e).(ACTION - ECKERT)
c) FINANCE & ADMINISTRATION
Receive draft Financial Reports for November 2021. (ACTION - KOEHN) d) FINANCE & ADMINISTRATION
Adopt Resolution approving Remote Access Policy. (ACTION - KOEHN) III. REGULAR AGENDA
2) FINANCE & ADMINISTRATION
Receive Financial Audit Report from Pisenti & Brinker, LLP (ACTION - KOEHN) Recommendation: Receive the Year-End Financial Statements and the Independent Auditor’s Report for Fiscal Year 2020-21.
3) MARKETING & COMMUNICATIONS
Resolution Authorizing the Executive Director to Execute a Third Amendment with JSR Strategies for Communication Services (ACTION - RIFFEY) Recommendation: Adopt Resolution authorizing the Executive Director to execute a third amendment to the contract with JSR Strategies (JSR) to increase the not-to-exceed dollar amount to $483,910 and extend the date of expiration to September 30, 2022, for Marketing and Communication Services.
4) ADMINISTRATION
Resolution Approving Additional Member to the Audit & Finance Committee and Appoint Additional Member (ACTION - ECKERT)
Recommendation: Adopt Resolution allowing the addition of one Board Member to the Audit & Finance Committee and appoint the additional member. 5) FINANCE & ADMINISTRATION
Resolution Approving Amendment No. 4 to the Amended and Restated Joint Exercise of Powers Agreement for Pioneer Community Energy to Amend the Limitations on Power Designation in the Joint Powers Agreement (ACTION - KOEHN) Recommendation: Approve Resolution approving Amendment No. 4 to the Amended and Restated Joint Exercise of Powers agreement for Pioneer Community Energy to amend the Limitations on Power Designation in the Joint Powers Agreement. 6) FINANCE & ADMINISTRATION
California Arrearage Payment Program (CAPP) Update (DISCUSSION - KOEHN) Recommendation: Receive an update on the California Arrearage Payment Program (CAPP).
7) MARKETING & COMMUNICATIONS
Time-of-Use Enrollment (DISCUSSION - RIFFEY)
Recommendation: Receive a report on PG&E’s implementation of the Time-of-Use transition in Pioneer Community Energy’s service area.
IV. GENERAL ADMINISTRATIVE FUNCTION – PART II
A. BOARD MEMBER COMMUNICATIONS
B. EXECUTIVE DIRECTOR COMMUNICATIONS
C. ITEMS FOR INFORMATION
1. Glossary of Terms
D. ADJOURNMENT
Pioneer Community Energy is committed to ensuring that persons with disabilities are provided the resources to participate fully in its public meetings. If you are hearing impaired, we have listening devices available. If you require additional disability-related modifications or accommodations, including auxiliary aids or services, please contact the Clerk of the Board. If requested, the agenda shall be provided in appropriate alternative formats to persons with disabilities. All requests must be in writing and must be received by the Clerk five business days prior to the scheduled meeting for which you are requesting accommodation. Requests received after such time will be accommodated only if time permits.
Affidavit of Posting
I, Teresa Willock, Board Secretary, declare under penalty of perjury that the foregoing agenda for the January 20, 2022 regular meeting of the Pioneer Community Energy Governing Board was posted and available for public review on January 14, 2022 at the offices of Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, CA 95677; and was available on the Pioneer website at:
http://pioneercommunityenergy.ca.gov/about-us/agendas-and-minutes/.
All public materials related to an item on this agenda submitted to the Governing Board after distribution of the agenda packet are also made available for public inspection on Pioneer’s website at:
http://pioneercommunityenergy.ca.gov/about-us/agendas-and-minutes/.
Any document provided at the meeting by staff or by the public will be provided by the Board Clerk upon request by phone at (916) 758-8946, or by email at: [email protected].
Next Regular Meeting Scheduled for:
February 17, 2022 at 3:00 pm
Pioneer Community Energy Offices
2510 Warren Drive, Suite B, Rocklin, CA 95677
Staff Report – Item IB
To: The Governing Board
From: Don Eckert, Executive Director
Item IB: Elect a Chair and Vice Chair of the Pioneer Governing Board for 2022 Date: 1/20/2022
RECOMMENDATION
The Governing Board elect a Chair and Vice Chair of the Pioneer Governing Board to serve for 2022.
BACKGROUND
Section 5D of the Pioneer Joint Powers Agreement specifies that the Governing Board shall select from among themselves, a Chair who shall be the presiding officer of all board meetings, and a Vice Chair, who shall serve in the absence of the Chair. The Agreement also specifies that the term of office continues for one year.
STRATEGIC PLAN
The recommendation supports the Local Engagement priority of the strategic plan.
FISCAL IMPACT
There is no fiscal impact with this recommendation.
ATTACHMENTS
There are no attachments.
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COMMUNITY ENERGY
PIONEER COMMUNITY ENERGY
GOVERNING BOARD
December 16, 2021
Minutes
Entry No. 1
Heard General Administration Functions, Part I.
A. Call to Order
Pioneer Community Energy Governing Board met in open session at 3:00 PM on December 16, 2021.
Pursuant to Government Code section 54953(e) and other applicable provisions of the Brown Act, the meeting was conducted via live streamed teleconference accessed and viewed at the following web link:
https://zoom.us/j/97824879033.
Roll Call
P A Title Name Agency
x Chair Jim Holmes County of Placer
x Vice Chair Jeff Duncan Town of Loomis
x Director Alice Dowdin Calvillo City of Auburn
x Director Wes Heathcock City of Colfax
x Director John Hidahl County of El Dorado
x Director Greg Janda City of Rocklin
x Director Suzanne Jones County of Placer
x Director Dan Karleskint City of Lincoln
x Director Michael Saragosa City of Placerville
Chair Holmes, County of Placer, presided over the meeting.
B. Agenda Approval
Approved the meeting agenda for December 16, 2021 as follows:
MOTION: Dowdin Calvillo/Janda.
ROLL CALL VOTE: 9:0:0
AYES: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Janda, Jones, Karleskint, Saragosa, Holmes.
C. Public Comment
There were no comments from members of the public on matters not listed on this agenda.
Entry No. 2
Acted on the Consent Agenda as follows:
Approved minutes of the November 18 , 2021 regular and November 29, 2021 special meetings.
To continue meetings by teleconferencing pursuant to Government Code Section 54953(e), (1) the Board has reconsidered the circumstances of the state of emergency created by the COVID-19 pandemic; and found (2) the state of emergency continues to directly impact the ability of the members to meet safely in person.
Adopted Resolution 2021-45 rescinding Resolution 2020-5, updating the regular meeting location for the Pioneer Community Energy Governing Board and approving the 2022 Governing Board Meeting Schedule.
Approved the New Member Reserve Target Amount of $20,000,000 for El Dorado County and the City of Placerville.
Adopted Resolution 2021-46 approving Anti-Malware Policy.
Authorized the Executive Director to fill the position of Key Accounts Manager.
Approved the Consent Agenda as amended less Item 1e, Draft Financial Report for October 2021.
MOTION: Dowdin Calvillo/Hidahl.
ROLL CALL VOTE: 9:0:0
AYES: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Janda, Jones, Karleskint, Saragosa, Holmes.
Entry No. 3
Received Draft Financial Report for October 2021.
MOTION: Saragosa/Karleskint.
ROLL CALL VOTE: 9:0:0
AYES: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Janda, Jones, Karleskint, Saragosa, Holmes.
Entry No. 4
Conducted the Public Hearing for which the following comment was received:
Name Comment (summarized from written correspondence)
Andy Nevis expressed appreciation for Pioneer expanding to El Dorado County; concerned that a rate adjustment at this point would have a negative result on the new El Dorado County customers; and encouraged the Board to delay and significantly reduce the proposed rate increases, then focus on providing the best value for customers regardless of what PG&E does with their rates.
Having no other comments from the public, closed the public hearing.
The Board selected option 3 - Balance, an estimated discount of 18% for 2017 vintaged customers and 6% for 2021 vintaged customers on average along with an estimated $32 million reserve contribution (72 days cash on hand).
Adopted Resolution 2021-47 approving implementation of Pioneer Generation Rate Changes effective March 1, 2022 using Option 3 – Balance.
MOTION: Dowdin Calvillo/Saragosa.
ROLL CALL VOTE: 7:2:0
AYES: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Jones, Saragosa, Holmes.
NOES: Janda, Karleskint.
Executive Director Eckert expressed appreciation of the Board for discussion, direction, and messaging; and commented that if the rates come in as planned staff will bring back an informational item with detailed rate schedules for all customers including the Green 100 to the very next Board meeting after the rates are implemented. If the rates come in substantially off the mark of what we are assuming today, we will do the minimum of the discount of the 6% and bring that back to the Board for discussion on any changes to be made in the strategy.
Correspondence and communication to positively socialize this decision to the public by enhanced comprehensive communication plan with news releases, AM radio stations with story of rate adjustments and impact to customers, reaching out to opt out customers with the projected savings offered, as well as providing talking points to the Members of the Governing Board.
Entry No. 5
Received an overview of proposed changes under consideration by the California Public Utilities Commission (CPUC) for Net Energy Metering 3.0.
Governing Board Minutes
December 16, 2021
Entry No. 6
Received a report and update on the impacts of PG&E’s Enhanced Powerline Safety Shutoff Program (EPSS) and Pioneer’s Service Area.
Entry No. 7
Heard General Administration Functions, Part II.
A. Board Member Communications
Director Janda reported that the Audit & Finance Committee met on December 8, 2021 to discuss the rate options presented at today’s Board meeting; and will be meeting again is late January/early February to review the Financial Audit and Mid-Year Budget.
B. Executive Director Communications
Executive Director Eckert reported that Senior Advisor to the Governor for Energy Alice Reynolds was appointed as the next California Public Utilities Commission (CPUC) President. Incoming President Reynolds seems to be a proponent of renewable energy and grid reliability, so should be in favor of the California Community Choice Aggregators (CCAs). Then, another member of the CPUC will be stepping down this week, who was not a fan of the CCA. So, hopefully the replacement will also be more favorable of the CCA.
Executive Director Eckert provided an expansion update regarding a positive meeting with City of Stockton and next steps will be to meet with the Mayor and City Manager.
In closing, Executive Director Eckert informed the Board of the Legislative and Regulatory Report and the Monthly Communications and Public Outreach Update which were attached to his report.
C. Informational Items
Received the Glossary of Terms.
D. Adjournment
The meeting adjourned at 5:00 PM
______________________________________
Jim Holmes, Chair
Pioneer Community Energy Governing Board
ATTEST:
Minutes approved as presented by a majority vote
of the Governing Board on January 20, 2022.
Teresa Willock, Board Secretary
Governing Board Minutes
December 16, 2021
Staff Report – Item 1b
To: The Governing Board
From: Casey Strong, Acting General Counsel
Item 1b: Determination Under AB 361 Regarding Imminent Risks to Health and Safety and Direction that the Meetings of the Board of Directors and All Other Legislative Bodies Be Conducted Remotely in Accordance with Government Code Section 54953(e)(3) Date: 1/20/2021
RECOMMENDATION
Determine pursuant to Government Code Section 54953(e)(1) that, as a result of the COVID-19 state of emergency, meeting in person would present imminent risks to the health or safety of attendees at the meetings of the Board of Directors and all other legislative bodies of Pioneer Community Energy (PCE), including all of the Board-appointed Committees.
Direct that the meetings of the Board of Directors and all other legislative bodies of PCE be conducted by teleconferencing pursuant to Government Code Section 54953(e).
BACKGROUND
The Board of Directors and other legislative bodies of PCE have met remotely throughout the COVID-19 pandemic to protect the health and safety of the public and staff. AB 361 authorizes the Board to conduct its meeting remotely provided that certain conditions are met. A state of emergency declared by the Governor must be in place and either of the following apply:
a. State or local officials have imposed or recommended measures to promote social distancing; or b. By a majority vote, the Board determines that meeting in person would present imminent risks to the health and safety of attendees.
(Gov. Code § 54953(e)(1).)
After making this determination, AB 361 requires the Board to make findings reconsidering the circumstances of the state of emergency at least every 30 days to continue holding meetings by teleconference. (Gov. Code § 54953(e)(3).) As Board last made the required findings on December 16, 2021, the recommended action is to make a new determination that meeting in person would present imminent risks to the health or safety of attendees.
ANALYSIS & DISCUSSION
The California Department of Public Health and the federal Centers for Disease Control and Prevention (“CDC”) caution that the Omicron variant of COVID-19 is more transmissible than the original variant of the virus, and that even fully vaccinated individuals can spread the virus to others resulting in rapid and alarming rates of COVID-19 cases and hospitalizations. As of December 20, 2021, the Omicron variant became the dominant strain in the United States, just 20 days after it was first detected in California.
Since the offices and Board meeting room of Pioneer Community Energy is located in Placer County, we have reviewed the circumstances concerning COVID-19 in Placer County. In an update issued January 7, 2022, Placer County reported that “cases surged at the end of December after decreasing through November. December 2021 saw 401 cases on the 30th, the highest sing-day new case count since the beginning of the pandemic up to that point (data pulled Jan. 7). As of January 7, the highest single-day case count has again been exceeded fJONEER
COMMUNITY ENERGY
Agenda Item: 1b Agenda Date: 1/20/2021
at 352 new cases on Jan. 3.”1 As of January 10, the 14 day regional rate of cases per 100,000 residents in the County ranged from 823 to 1351 cases.2
On January 4th, in an effort to support local hospitals impacted by the sharp rise in COVID-related cases, Placer County Public Health extended the Health Warning that was issued in late summer to urge all residents to use high-quality medical masks while in indoor settings. Placer County Public Health further stated that the “rapid increase in cases and hospitalizations in recent days strongly suggests Omicron is spreading widely in Placer as throughout the region.” 3 In addition, the California Department of Public Health issued a statewide order requiring all Californians, regardless of vaccination status, to wear face coverings in indoor public settings until February 15, 20224; and the CDC continues to advise that COVID-19 spreads more easily indoors than outdoors and that people are more likely to be exposed to COVID-19 when they are closer than 6 feet apart from others for longer periods of time.
The characteristics of the Pioneer facilities is another reason for continuing remote meetings, including the increased mixing associated with bringing people together from across several communities; the need to enable those who are immunocompromised or unvaccinated to be able to safely continue to particulate in Pioneer meetings; and the challenge of achieving compliance with safety requirements and recommendations in the available space. By determining that meeting in person would present imminent risks to the health or safety of attendees, the public meetings of PCE can continue to be conducted by Zoom. Within 30 days after making this determination, and after 30 days thereafter, the Board must reconsider the circumstances of the state of emergency and find that it continues to directly impact the ability of members to meet safely in person.
An alternative ground to continue to remote meetings by Zoom is that State or local officials have imposed or recommended measures to promote social distancing. As noted above, recommendations and requirements on the use of face coverings in indoor settings have been issued by Placer County Public Health and the California Department of Public Health. Cal/OSHA’s emergency standards also require employers to provide training to their employees on the effectiveness of physical distancing and face coverings in the workplace. If the Board were to determine to continue meeting remotely on this ground, it would also require reconsideration and renewal every 30 days. At such time as the AB 361 findings cannot be made, it will be necessary to return to in-person meetings.
STRATEGIC PLAN
Strategic Policy 1: Local Engagement, Objective 1.5
FISCAL IMPACT
None
ATTACHMENTS
None
1 Placer County COVID-19 Update, Jan. 7, 2022,
https://www.placer.ca.gov/DocumentCenter/View/57657/COVID-update-1722-FINAL. 2 Placer County COVID-19 Dashboard, https://itwebservices.placer.ca.gov/coviddashboard. 3 Placer County Public Health Extends its Health Warning as COVID Hospitalizations Surge, Jan. 4, 2022, https://www.placer.ca.gov/7745/Public-Health-extends-Health-Warning. 4 California Department of Public Health, Guidance for the Use of Face Masks (January , 2022), https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/COVID-19/guidance-for-face-coverings.aspx.
Staff Report – Item 1c
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1c: Receive Draft Financial Reports for November 2021 Date: 1/20/2022
ACTION REQUESTED
Receive draft Financial Reports for November 2021.
BACKGROUND
The Year-To-Date (YTD) financial reports are produced by Maher Accountancy for Board member and management review. Although these reports are unaudited, they provide the most up-to-date financial data for Pioneer Community Energy. Financials for the mPOWER program continue to be reviewed by both the Placer County Treasurer’s Office and Maher Accountancy to ensure accuracy and completeness and will be provided in upcoming reports to the Board. For November 2021, the financial reporting package includes the following reports for the CCA Fund only:
• Statement of Net Position (Balance Sheet) – Accounting of Assets, Liabilities and Net Position as of the reporting period end date for the CCA program. • Statement of Revenues, Expenses, and Changes in Net Position (P&L) – Accounting of all revenues, expenses, and changes in net position on a YTD basis through the reporting period end date for the CCA program.
• Budget to Actuals – Comparison of budget to actuals on a YTD basis through the reporting period end date for the CCA program.
STRATEGIC PLAN
Strategic Priority 5: Financial Stability & Strategic Growth
FISCAL IMPACT
The report results in a change of net position of $1.3 million through the first five months of the fiscal year.
ATTACHMENTS
1. Financial Reports through November 30, 2021
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COMMUNITY ENERGY
1 ACCOUNTANTS’ COMPILATION REPORT
Management
Pioneer Community Energy
Management is responsible for the accompanying financial statements of the CCA Program of Pioneer Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of November 30, 2021, and the related statement of revenues, expenses, and changes in net position for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America in these interim financial statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about PCE’s financial position, results of operations, and cash flows.
Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Pioneer Community Energy because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
January 7, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com CCA Fund
ASSETS
Current assets
Cash and cash equivalents 25,261,328 $
Accounts receivable, net of allowance 8,262,315
Accrued revenue 3,160,266
Other receivables 1,145,382
Prepaid expenses 58,218
Deposits 3,542,759
Total current assets 41,430,268
LIABILITIES
Current liabilities
Accrued cost of energy 4,962,772
Accounts payable 658,116
Other accrued liabilities 157,707
Interest payable 32,856
Deposits 159,750
Energy surcharges due to other governments 47,396
Note payable 537,796
Total current liabilities 6,556,393
Noncurrent liabilities
Note payable 9,703,163
Total noncurrent liabilities 9,703,163
Total liabilities 16,259,556
NET POSITION
Unrestricted net position 25,170,712
Total net position 25,170,712 $
PIONEER COMMUNITY ENERGY
STATEMENT OF NET POSITION
As of November 30, 2021
CCA FUND
See accountants' compilation report. 2
CCA Fund
OPERATING REVENUES
Electricity sales, net 41,759,176 $
Other income 23,063
Total operating revenues 41,782,239
OPERATING EXPENSES
Cost of electricity 37,439,733
Contract services 1,678,817
Staff compensation 935,109
General and administration 218,882
Total operating expenses 40,272,541
Operating income (loss) 1,509,698
NONOPERATING REVENUES (EXPENSES)
Investment gains (losses) 4,472
Interest and financing expense (168,988)
Nonoperating revenues (expenses), net (164,516)
CHANGE IN NET POSITION 1,345,182
Net position at beginning of period 23,825,530
Net position at end of period 25,170,712 $
PIONEER COMMUNITY ENERGY
Five Months Ended November 30, 2021
AND CHANGES IN NET POSITION
STATEMENT OF REVENUES, EXPENSES
CCA FUND
See accountants' compilation report. 3
4 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Pioneer Community Energy
Management is responsible for the accompanying special purpose statement for the CCA Program of Pioneer Community Energy (PCE), a California Joint Powers Authority, which comprise the budgetary comparison schedule for the period ended November 30, 2021, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of PCE.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
PCE’s annual audited financial statements will include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about PCE’s financial position, results of operations, and cash flows.
Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to PCE because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
January 7, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 2021/22 YTD
Budget
2021/22 YTD
Actual
2021/22 YTD
Budget
Variance
(Under) Over
2021/22
YTD
Actual/
Budget % 2021/22 Budget
2021/22
Budget
Remaining
ENERGY REVENUES
Electricity Sales $ 42,589,573 $ 42,314,314 $ (275,259) 99% 108,347,000 $ $ 66,032,686 Less Uncollectible Accounts (425,896) (555,140) (129,244) 130% (1,083,470) (528,330) Total Operating Revenues 42,163,677 41,759,174 (404,503) 107,263,530 65,504,356
ENERGY REVENUES
Power Supply 37,439,733 40,391,560 (2,951,827) 93% 98,516,000 61,076,267 OPERATING MARGIN 1,772,117 4,319,440 2,547,323 8,747,530 4,428,090
OPERATING EXPENSES
Administration
Compensation 217,513 236,521 (19,008) 92% 567,651 350,138 Contract services 129,375 47,117 (82,258) 36% 310,500 263,383 Operating Expenses 272,566 182,215 (90,351) 67% 654,159 471,944 Total Administration expenses 638,463 446,845 (191,617) 1,532,310 1,085,465 Finance
Compensation 263,110 256,715 6,394 102% 576,117 313,007 Contract services 148,474 150,724 2,250 102% 356,338 205,614 Operating Expenses 89,565 34,676 (54,889) 39% 214,957 180,281 Total Finance expenses 494,755 448,510 (46,245) 1,147,412 698,902 Power Procurement
Compensation 160,170 193,510 (33,340) 83% 504,423 344,253 Contract services 244,279 639,999 395,720 262% 586,269 (53,730) Operating Expenses 1,250 231 (1,019) 19% 3,000 2,769
Total Power Procurement expenses 800,400 439,038 361,362 1,093,692 293,292 Account Care
Compensation 110,724 115,683 (4,959) 96% 277,639 166,915 Contract services 615,333 529,856 (85,477) 86% 1,476,800 946,944 Operating Expenses 273,500 - (273,500) 0% 656,400 656,400 Total Power Account Care expenses 1,004,516 640,580 (363,936) 2,410,839 1,770,259 Marketing & Communications
Compensation 76,526 140,444 (63,918) 54% 337,066 260,540 Contract services 77,083 93,658 16,575 122% 185,000 91,342 Operating Expenses 82,225 119,301 37,076 145% 197,340 78,039 Total Marketing expenses 299,753 289,485 (10,268) 719,406 429,921 Legislative & Regulatory
Compensation 101,670 117,974 (16,304) 86% 283,138 181,468 Contract services 153,433 99,511 (53,922) 65% 368,240 268,729 Operating Expenses 21,063 412 (20,651) 2% 50,550 50,138 Total Legislative expenses 292,470 201,593 (90,877) 701,928 500,335 Programs
Compensation 5,392 22,142 (16,750) 24% 53,141 47,749
Contract services - - - - -
Operating Expenses 1,250 - (1,250) 0% 3,000 3,000
Total Programs expenses 23,392 5,392 (18,000) 56,141 50,749 Total Operating Expenses 3,192,387 2,832,806 (359,581) 7,661,728 4,828,922
NON-OPERATING REVENUES (EXPENSES)
Investment gains (losses) - 4,472 4,472 - (4,472)
Miscellaneous income - 23,063 23,063 - (23,063)
Principal payments (225,000) (214,725) 10,275 95% (540,000) (325,275) Interest and related expenses (170,835) (168,988) 1,847 99% (410,000) (241,012) Nonoperating revenues (expenses), net (356,178) (395,835) 39,657 (950,000) (593,822) Total Expenses (Energy, Operating, Non-Operating) 43,979,782 40,628,717 (3,351,065) 107,127,728 66,499,011 Contribution to/(from) Reserves $ (1,816,105) $ 1,130,457 $ 2,946,562 $ 135,802 $ (994,655)
BUDGETARY COMPARISON SCHEDULE
Five Months Ended November 30, 2021
PIONEER COMMUNITY ENERGY
CCA FUND
5
Staff Report – Item Id
To: The Governing Board
From: Steve Lund, Program Specialist II
Item Id: Adopt a Resolution Approving Remote Access Policy Date: 1/20/2022
RECOMMENDATION
Adopt a Resolution Approving Remote Access Policy.
BACKGROUND
Pioneer Community Energy (Pioneer) Information systems are a growing and important resource for staff, one that can provide critical competitive advantage to Pioneer in the form of information gathering, improved external communications, and increased customer responsiveness. As staff use Information Systems to connect with our customers, suppliers, other staff, and key organizations, it is important that staff understand and comply with the appropriate procedures to protect Pioneer’s information technology (IT) assets and data.
ANALYSIS & DISCUSSION
Pioneer utilizes sensitive/confidential information for analysis of business operations and customer service excellence. Due to the COVID pandemic and the fast-paced nature of our industry remote access to Pioneers systems has become a necessity. However, remote access to information systems presents certain risks that can be limited with the appropriate policies and procedures in place. The attached Remote Access Policy will provide Pioneer staff another tool necessary to keep Pioneers data secure.
STRATEGIC PLAN
Strategic Priority 4: Operational Excellence
Reliability is central to our efforts and a core value of Pioneer. By prioritizing operational excellence, we retain our independence and agility as a provider while supporting our community by offering more options for reliable energy.
FISCAL IMPACT
No Fiscal Impact
ATTACHMENTS
1) Resolution Establishing Remote Access Policy.
fJONEER
COMMUNITY ENERGY
Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held January 20, 2022, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, it is best practice to establish information technology (IT) policies; and WHEREAS, it is in the interest of Pioneer Community Energy (“Pioneer”) to establish Remote Access policy to facilitate effective best practices and IT standards; and WHEREAS, the objective of the Remote Access Policy is to provide staff with a standard for accessing information systems remotely
NOW THEREFORE, BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:
1. The above recitals are true and correct.
2. The Remote Access Policy is established as provided in Exhibit A attached to this resolution and incorporated herein.
3. This Resolution shall take effect immediately upon its adoption.
Exhibit A: IT7 – Remote Access Policy
In the matter of: Adopt a Resolution Approving
Remote Access Policy
IT7
Category: Information Technology
Page | 1 Proposed: January 20, 2022
REMOTE ACCESS POLICY
I. PURPOSE
This policy applies to all Pioneer Staff with a computer used to connect to the Pioneer’s network from a remote location. This policy applies to remote access connections used to conduct official Pioneer business, including reading or sending e-mail and viewing intranet web resources. Remote access implementations that are covered by this policy include, but are not limited to, high speed Internet connectivity, Virtual Private Network (VPN), Secure Shell (SSH), Microsoft Azure and other cloud-based systems, and other forms of electronic connectivity to Information Systems.
II. SCOPE
This policy applies to all Staff that access Pioneer’s Information Systems from a remote location.
III. DEFINITIONS
“Information Systems” shall mean an integrated set of
components for collecting, storing, and processing data and for providing information, knowledge, and digital products.
IV. POLICY
Staff shall contact the IT Department for approved methods to remotely connect to Pioneer's Information Systems. Staff shall review Pioneer's Securing Information Systems Policy for details on protecting information when accessing the corporate network via remote access methods. Staff shall review the Information Systems Acceptable Use Policy for the acceptable use of the Company's Information Systems.
It is the responsibility of Staff with remote access privileges to Pioneer’s Information Systems to ensure that their remote access connection is given the same consideration as the user's on-site connection.
Secure remote access is strictly controlled. Control will be enforced via one-time password authentication or public/private keys with f/ONEER
COMMUNITY ENERGY
IT7
Category: Information Technology
Page | 2 Proposed: January 20, 2022
strong passphrases. For information on creating a strong password/phrase see the Password Policy. At no time should any Pioneer Staff member disclose their login or e-mail password to anyone.
When accessing Pioneer’s Information Resources from a remote location, Staff shall ensure:
• Pioneer's policies and procedures are followed.
• Friends and relatives do not have access to Pioneer’s systems and assets.
• Staff do not connect to other networks (excluding the Internet, an in-house personal network, or a secure WIFI network) at the same time they are connected to Pioneer’s systems.
• Only Pioneer e-mail accounts are used for business related communications.
• All computers, mobile devices, etc. use up-to-date anti-malware software and an activated firewall (if available).
Please refer to the Anti-Malware Policy for more information.
Staff who wish to implement non-standard remote access solutions to Pioneer Information Systems must obtain prior written approval from the Executive Director.
V. ENFORCEMENT
Any Staff member found to have violated this policy may be subject to disciplinary action, up to and including termination.
VI. DISTRIBUTION
This policy is to be distributed to all Pioneer staff.
f/ONEER
COMMUNITY ENERGY
Staff Report – Item 2
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 2: Receive Financial Audit Report from Pisenti & Brinker, LLP Date: 1/20/2022
RECOMMENDATION
Receive the Year-End Financial Statements and the Independent Auditor’s Report for the Fiscal Year 2020-21.
AUDIT COMMITTEE
At the January 12, 2022, meeting of the Audit Committee, committee members received a presentation from the Independent Auditor and discussed the status of the audit and the auditor’s opinion.
BACKGROUND
The annual audit of the financial statements has been completed and the report prepared by Pisenti & Brinker, LLP has been issued to the Agency. The auditors have rendered a clean opinion and “found the financial statements referred to above present fairly, in all material respects, the financial position of Pioneer as of June 30, 2021 and the changes in financial position and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.” The Statements described below are for the entirety of Pioneer and include both the Community Choice Aggregation and mPOWER program components.
Basic Financial Statements
The Statement of Net Position presents information about assets and liabilities and the difference between the two are reported as net position. The change in net position over time is an indicator of whether the financial position of Pioneer is improving or deteriorating.
The Statement of Revenues, Expenses and Changes in Net Position reports how the net position changed during the year and presents a comparison between operating and non-operating revenues and operating and non-operating expenses.
The Statement of Cash Flows reports the cash provided and used by operating activities, as well as other sources and uses, such as financing and investing activities.
Notes to the Financial Statements
Various notes provide additional information that is essential to a full understanding of the information provided in the basic financial statements. They are found immediately following the financial statements to which they refer.
fJONEER
COMMUNITY ENERGY
Agenda Item: 2 Agenda Date: 1/20/2022
ANALYSIS & DISCUSSION
The following are highlights of the financial statement as of June 30, 2021:
Total assets were $52.6 million with current assets comprised of $42 million. Current assets are mostly comprised of cash and cash equivalents of $27.7 million; accounts receivable of $8.5 million, and accrued revenue of $3.9 million. Current assets have increased each year since Pioneer’s launch as a result of operating surpluses.
Total liabilities were $28.4 million of which current liabilities totaled $9.2 million. Current liabilities primarily consist of cost of electricity that has been delivered to customers, but not yet paid to Pioneer. Other liabilities include interest and bond payable. Noncurrent liabilities include Bonds and Notes Payable due in more than a year.
Total operating revenues were $82.6 million which is almost exclusively generated from electricity sales.
Total operating expenses were $79.7 million which was primarily the cost of electricity $73.86 million and contract services $3.7 million.
FISCAL IMPACT
During Fiscal Year 2020-21, Pioneer’s total revenues exceeded total expenses which resulted in the Unrestricted Net Position of increase of almost $2.2 million to total Net Position of $24.2 million and after adjusting for deposits held as collateral, the available reserves are approximately $20.1 million.
ATTACHMENTS
1. Audited Financials for the fiscal year ended June 30, 2021 Financial Statements
Fiscal Years Ended June 30, 2021 and 2020
with Report of
Independent Auditors
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COMMUNITY ENERGY
TABLE OF CONTENTS
Independent Auditor’s Report …………………………………………………........... 1 Management’s Discussion and Analysis ……………………………………………... 3 Basic Financial Statements:
Statements of Net Position …………………………………………………… 9
Statements of Revenues, Expenses and Changes in Net Position …................. 10 Statements of Cash Flows ……………………………………………………. 11
Notes to the Basic Financial Statements ……………………………………. 13 Supplementary Information …………………………………………………………. 27
Compliance:
Report on Internal Control Over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards…………………………. 30
A.
SANTA ROSA PETALUMA
RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. 3562 Round Barn Circle, Suite 200
Santa Rosa, CA 95403
(707) 542‐3343 Office
(707) 527‐5608 Fax
pbllp.com
Independent Auditor’s Report
To the Board of Directors
Pioneer Community Energy
Auburn, California
Report on the Financial Statements
We have audited the accompanying financial statements of Pioneer Community Energy (Pioneer), as of and for the years ended June 30, 2021 and 2020, and the related notes to the financial statements, which collectively comprise Pioneer’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Pioneer as of June 30, 2021 and 2020 and the changes in financial position and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
• • p Is E NT I & BR I N I( ER LLP
Certified Public Accountants & Adviso rs
RSMlrs"Am~";;;; RS~A
Independent Auditor’s Report (continued)
Other Matters
Required supplementary information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other information
The supplementary information of combining fund information as listed in the table of contents is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining fund information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 14, 2022 on our consideration of Pioneer's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Pioneer's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Pioneer’s internal control over financial reporting and compliance.
Santa Rosa, California
January 14, 2022
PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2021 AND 2020
3 The Management’s Discussion and Analysis provides an overview of Pioneer Community Energy’s (Pioneer) financial activities as of and for the years ended June 30, 2021 and 2020. The information presented here should be considered in conjunction with the audited financial statements.
BACKGROUND
The formation of Pioneer was made possible in 2002 by the passage of California Assembly Bill 117, enabling communities to purchase power on behalf of their residents and businesses and creating competition in power generation.
Pioneer was created as a California Joint Powers Authority (JPA) in August 2015. Pioneer was established to provide electric power at competitive cost as well as to provide other benefits within Placer County, including reducing greenhouse gas emissions related to the use of power, procuring energy with a priority on stimulating local job creation through various programs and development, promoting long-term electric rate stability and energy reliability for residents and business, the use and development of local renewable resources, as well as promoting personal and community ownership of renewable resources.
Pioneer served six jurisdictions through 2021, including the cities and towns of Auburn, Colfax, Loomis, Lincoln, and Rocklin and the unincorporated area of Placer County. Unincorporated El Dorado County and the City of Placerville annexed into Pioneer in March 2021 and services to them will be provided beginning January 2022. Governed by a board of directors (Board) consisting of elected representatives from each jurisdiction, Pioneer is responsible for the acquisition of electric power for its service area. Pioneer has the rights and powers to set rates for the services it furnishes, incur indebtedness, and issue bonds or other obligations.
PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2021 AND 2020
4 Financial Reporting
Pioneer presents its financial statements as an enterprise fund under the economic resources measurement focus and the accrual basis of accounting, in accordance with Generally Accepted Accounting Principles (GAAP) for proprietary funds, as prescribed by the Governmental Accounting Standards Board (GASB).
Contents of this report
This report is divided into the following sections:
Management’s discussion and analysis.
The basic financial statements:
o The Statements of Net Position include all of Pioneer’s assets, liabilities, and net position and provides information about the nature and amount of resources and obligations at a specific point in time.
o The Statements of Revenues, Expenses, and Changes in Net Position report all of Pioneer’s revenue and expenses for the years shown.
o The Statements of Cash Flows report the cash provided and used by operating activities, as well as other sources and uses, such as debt financing. o The Notes to the Basic Financial Statements, which provide additional details and information related to the basic financial statements.
PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2021 AND 2020
5 FINANCIAL HIGHLIGHTS
The following table is a summary of Pioneer’s assets, liabilities, and net position and a discussion of significant changes during the years ended June 30:
2021 2020 2019
Assets
Current assets 42,009,246 $ 39,738,154 $ 29,158,248 $
Noncurrent assets 10,585,022 13,125,403 13,097,889
Total assets 52,594,268 52,863,557 42,256,137
Liabilities
Current liabilities 9,198,553 8,983,213 6,879,453
Noncurrent liabilities 19,225,073 21,869,904 25,129,475 Total liabilities 28,423,626 30,853,117 32,008,928
Net position
Restricted - - 2,990,000
Unrestricted 24,170,642 22,010,440 7,257,209
Total net position 24,170,642 $ 22,010,440 $ 10,247,209 $ Current assets
Fiscal year 2021 current assets were mostly comprised of cash and cash equivalents of $27.7 million, accounts receivable of $8.5 million, accrued revenue of $3.9 million, and restricted cash of $597,000. Current assets increased each year as a result of operating surpluses.
Noncurrent assets
Fiscal year 2021 other noncurrent assets consist of various deposits for regulatory and other operating purposes expected to be held longer than a year. Included are deposit postings with the California Public Utilities Commission (CPUC), and deposits held by energy suppliers as collateral on energy purchase transactions. Also included as noncurrent assets is the long-term portion of the outstanding principal balance on Property Assessed Clean Energy (PACE) program loans.
PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2021 AND 2020
6 Current liabilities
Fiscal year 2021 current liabilities consist mostly of the cost of electricity delivered to customers that is not yet due to be paid by Pioneer. The accrued cost of electricity totaled $7.4 million. Other components of current liabilities include accounts payable for services, the current portion of bonds and loan payable, taxes and surcharges due to other governments and other accrued liabilities.
Noncurrent liabilities
Bonds and loan payable are included in noncurrent liabilities. The decrease in bonds payable is the result of the accelerated debt service repayment on the Community Choice Aggregation (CCA) Fund’s outstanding Series 2017 Revenue Bond and the accelerated payoff of mPOWER bonds by property owners during 2021. The Series 2017 Revenue Bond was replaced with a new note with Umpqua Bank.
Operation Results
The following table is a summary of Pioneer’s results of operations and a discussion of significant changes for years ended June 30:
2021 2020 2019
Operating revenues 82,597,443 $ 80,507,683 $ 72,522,624 $ Investment gains (losses) (69,041) 495,233 725,593
Total income 82,528,402 81,002,916 73,248,217
Operating expenses 79,687,675 68,398,999 68,204,282
Interest and financing expense 680,525 840,686 692,709
Total expenses 80,368,200 69,239,685 68,896,991
Change in net position 2,160,202 $ 11,763,231 $ 4,351,226 $ Operating revenues and investment income
Pioneer’s main operating revenues are derived from the sale of electricity to commercial and residential customers throughout its territory. Operating revenues increased from 2019 to 2020 mainly as the result of rate changes. Operating revenues from 2020 to 2021 held fairly steady as no rate changes occurred. An investment loss was recognized in 2021 due to fair market value adjustments from funds held by the County Treasury.
Operating expenses
Pioneer’s largest expense each year was the purchase of electricity delivered to retail customers.
Pioneer procures energy from a variety of sources and focuses on maintaining a balanced power portfolio at competitive costs. Operating expenses increased significantly in 2021 primarily due to rising costs in the energy market.
PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2021 AND 2020
7 ECONOMIC OUTLOOK
Pioneer Community Energy serves approximately 89% of all eligible customers in Placer County and this has remained relatively stable. Pioneer will begin to serve the expansion territory of unincorporated El Dorado County and the City of Placerville January 2022. Pioneer staff are actively working thru multiple media channels and meeting with community groups to inform residents and business in the expansion territory of Pioneer becoming a choice for their energy generation.
Pioneer’s mission is to provide competitive electric rates, reliable service and a choice in energy options. Since launching in February 2018 through November 2020, Pioneer has delivered $32.5 million of savings for ratepayers compared to Pacific Gas & Electric (“PG&E”). PG&E’s recent submittals to the California Public Utility Commission for rate changes and an expected lower Power Charge Indifference Adjustment (i.e., exit fee), reinforces Pioneer’s expectation that Pioneer will realize improved rate competitiveness when compared to PG&E. The January 2022 expansion will also provide economies of scale that would provide the opportunity to acquire lower cost power supply and attract more credit-worthy counterparties. Pioneer will continue to evaluate appropriate opportunities for expansion of its service territory.
During March 2020, the World Health Organization declared COVID-19 a pandemic. In response, to the pandemic, California created the California Arrearage Payment Program that will assist certain customers with utility bill relief for the period of March 2020 to June 2021. Pioneer is participating in that program and when funding is distributed in January 2022, Pioneer is estimating that it's eligible customers may receive relief benefit of almost $1.4 million.
In the normal course of business, Pioneer enters into various agreements, including renewable energy agreements and other power purchase agreements to purchase power and electric capacity.
Pioneer enters into power purchase agreements in order to comply with state law, its Risk Management Policy, and as described in its Integrated Resource Plan. California law established a Renewable Portfolio Standard (“RPS”) that requires load-serving entities (“LSEs”), such as Pioneer, to gradually increase the amount of renewable energy they deliver to their customers.
Senate Bill 100, signed by California’s Governor in September 2018, directs LSEs to supply 60% of their retail sales with RPS-eligible resources by 2030.
Pioneer manages risks associated with these commitments by aligning purchase commitments with expected demand for electricity and by securing a diversity of technologies, geographical locations, and suppliers.
PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2021 AND 2020
8 ECONOMIC OUTLOOK (continued)
An important initiative for Pioneer is the support of local energy supply. Pioneer entered into a 10- year Power Purchase Agreement with El Dorado Irrigation District for hydro energy. This agreement is an example of the benefits of local control where local utilities worked together to benefit the community Pioneer serves. Pioneer has also worked closely with a coalition of CCAs in introducing a biomass bill that would allow CCAs to participate in the BioMAT feed-in tariff program that was only available to Investor-Owned Utilities. Those coalition efforts proved successful in the Fall of 2021 when the Governor signed into law the bill. The bill will encourage the development of biomass projects.
Pioneer has a strong focus on continuing to build credit capacity through increased cash reserves and entering favorable energy purchase commitments. This is further demonstrated by the Board’s approval during October 2021 that adopted a series of financial policies that included an increased reserve target. Pioneer will work to achieve this increased reserve target in a 3-to-5-year timeline.
Management intends to continue its conservative use of financial resources and expects ongoing operating surpluses that will build the reserves.
REQUEST FOR INFORMATION
This financial report is designed to provide Pioneer’s customers and creditors with a general overview of the organization’s finances and to demonstrate Pioneer’s accountability for the funds under its stewardship.
Please address any questions about this report or requests for additional financial information to 2510 Warren Dr., Suite B, Rocklin, CA 95677.
Respectfully submitted,
Don Eckert Jr, Executive Director
BASIC FINANCIAL STATEMENTS
PIONEER COMMUNITY ENERGY
STATEMENTS OF NET POSITION
JUNE 30, 2021 AND 2020
9 The accompanying notes are an integral part of these financial statements. 2021 2020
ASSETS
Current assets
Cash and cash equivalents 27,676,379 $ 24,937,380 $
Restricted cash and investments 596,530 451,022
Accounts receivable, net of allowance 8,512,333 8,752,658 Accrued revenue 3,869,044 4,923,233
Other receivables 301,254 349,880
Interest receivable 102,687 158,433
Contractual assessments receivable 295,433 -
Prepaid expenses 475,586 165,548
Deposits 180,000 -
Total current assets 42,009,246 39,738,154
Noncurrent assets
Deposits 3,192,759 3,029,660
Contractual assessments receivable 7,392,263 10,095,743 Total noncurrent assets 10,585,022 13,125,403
Total assets 52,594,268 52,863,557
LIABILITIES
Current liabilities
Accrued cost of energy 7,425,535 7,901,441
Accounts payable 345,048 254,650
Other accrued liabilities 168,059 82,755
Interest payable 136,992 179,373
Supplier security deposits 159,750 21,300
Energy surcharges due to other governments 161,498 -
Bonds payable 272,420 543,694
Note payable 529,251 -
Total current liabilities 9,198,553 8,983,213
Noncurrent liabilities
Bonds payable 9,298,640 21,869,904
Note payable 9,926,433 -
Total noncurrent liabilities 19,225,073 21,869,904
Total liabilities 28,423,626 30,853,117
NET POSITION
Unrestricted 24,170,642 22,010,440
Total net position 24,170,642 $ 22,010,440 $
PIONEER COMMUNITY ENERGY
STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
YEARS ENDED JUNE 30, 2021 AND 2020
10 The accompanying notes are an integral part of these financial statements. 2021 2020
OPERATING REVENUES
Electricity sales, net 81,929,623 $ 79,558,745 $
Service charges 667,820 948,938
Total operating revenues 82,597,443 80,507,683
OPERATING EXPENSES
Cost of electricity 73,862,156 63,408,751
Contract services 3,728,854 3,530,635
Staff compensation 1,702,419 947,734
General and administration 394,246 511,879
Total operating expenses 79,687,675 68,398,999
Operating income 2,909,768 12,108,684
NONOPERATING REVENUES (EXPENSES)
Investment gains (losses) (69,041) 495,233
Interest and financing expense (680,525) (840,686)
Nonoperating revenues (expenses), net (749,566) (345,453) CHANGE IN NET POSITION 11,763,231 2,160,202
Net position at beginning of period 22,010,440 10,247,209 Net position at end of period 24,170,642 $ 22,010,440 $
PIONEER COMMUNITY ENERGY
STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2021 AND 2020
11 The accompanying notes are an integral part of these financial statements. 2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 83,578,688 $ 77,021,912 $
Other operating receipts 820,908 900,892
Contractual assessments received, net 2,757,926 12,146
Payments to suppliers for electricity (75,277,415) (59,344,640) Payments for goods and services (3,988,194) (4,067,978) Payments for staff compensation (1,622,032) (947,735)
Payments of taxes and surcharges to other governments (262,321) (316,158) Net cash provided by operating activities 6,007,560 13,258,439
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Note payable proceeds 10,500,000 -
Bond proceeds - 590,429
Principal paid on bonds and note (12,886,852) (3,810,349) Interest and related expense payments (722,906) (817,256) Net cash used by non-capital
financing activities (3,109,758) (4,037,176)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income (13,295) 502,976
Net cash provided (used) by investing activities (13,295) 502,976 Net change in cash and cash equivalents 2,884,507 9,724,239 Cash and cash equivalents at beginning of year 25,388,402 15,664,163 Cash and cash equivalents at end of year 28,272,909 $ 25,388,402 $ Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) 27,676,379 $ 24,937,380 $ Restricted cash and investments 596,530 451,022
Cash and cash equivalents 28,272,909 $ 25,388,402 $
PIONEER COMMUNITY ENERGY
STATEMENTS OF CASH FLOWS (CONTINUED)
YEARS ENDED JUNE 30, 2021 AND 2020
12 The accompanying notes are an integral part of these financial statements. 2021 2020
Operating income 2,909,768 $ 12,108,684 $
Adjustments to reconcile operating income to net
cash provided by operating activities:
Revenue adjusted for allowance for uncollectible accounts 1,507,096 505,787 (Increase) decrease in:
Accounts receivable (1,266,772) (2,025,576)
Accrued revenue 1,054,189 (1,255,659)
Other receivables (301,254) -
Prepaid expenses (310,039) 1,912,039
Deposits (343,099) -
Contractual assessments receivable 2,757,600 12,146
Increase (decrease) in:
Accrued cost of electricity (475,905) 2,291,730
Accounts payable 159,668 (69,202)
Other accrued liabilities 85,630 (25,609)
Energy surcharges due to other governments 92,228 (77,541) Supplier security deposits 138,450 (118,360)
Net cash provided by operating activities 6,007,560 $ 13,258,439 $
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
13 1. REPORTING ENTITY
Pioneer Community Energy (Pioneer) is a California joint powers authority created in August of 2015. As of June 30, 2021, parties to its Joint Powers Agreement consist of the following local governments:
Counties Cities and Towns
Placer Auburn Placerville
El Dorado Colfax Lincoln
Loomis Rocklin
Pioneer is separate from and derives no financial support from its members. Pioneer is governed by a Board of Directors whose membership is composed of elected officials representing the member governments.
A core function of Pioneer is to provide electric service that includes providing electric energy at competitive rates and it operates as a Community Choice Aggregation Program (CCA) subject to California Public Utilities Code Section 366.2.
Pioneer operates two programs, the CCA Program and the mPOWER Program.
CCA Program – Pioneer began providing electric generation services to its customers in February of 2018 and will begin providing services to El Dorado County and the City of Placerville beginning in January 2022. Pioneer supplies electric energy to retail customers through its CCA Program. Pioneer participates in the wholesale energy market to acquire its energy and related products (resource adequacy and renewable energy) from a variety of wholesale energy suppliers.
Pioneer’s energy is delivered through existing physical infrastructure and equipment owned and operated by the incumbent utility.
mPOWER Program – The mPOWER Program provides assessment financing to property owners for the installation of energy efficiency, water conservation and distributed generation improvements. The mPOWER Program is supported from revenues derived from assessments attached to and collected on participating property owners’ property tax bills. The Pioneer Board directed that new applications for the mPOWER program will only be accepted through August 31, 2021.
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
14 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
Pioneer’s financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements.
Pioneer’s operations are accounted for as a governmental enterprise fund and are reported using the economic resources measurement focus and the accrual basis of accounting – similar to business enterprises. Accordingly, revenues are recognized when they are earned, and expenses are recognized at the time liabilities are incurred. Enterprise fund-type operating statements present increases (revenues) and decreases (expenses) in total net position.
CASH AND CASH EQUIVALENTS
For the purpose of the Statements of Cash Flows, Pioneer defines cash and cash equivalents to include cash on hand, demand deposits, and short-term investments with an original maturity of three months or less. The Statements of Net Position present restricted cash balances separately.
Restricted cash reported on the Statements of Net Position includes certain deposits held by energy suppliers and assessment receipts pertaining to the mPOWER program that are pledged to service debt.
PREPAID EXPENSES AND DEPOSITS
Contracts to purchase energy may require Pioneer to provide the supplier with advanced payments or security deposits. Deposits are generally held for the term of the contract and are classified as current or noncurrent assets depending on the length of time the deposits will be outstanding.
Also included are prepaid expenses and deposits for regulatory and other operating purposes.
NET POSITION
Net position is presented in the following components:
Restricted: This component of net position consists of constraints placed on net asset use primarily imposed by creditors (such as through debt or credit covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. Pioneer did not have any restrictions as of June 30, 2021 or 2020.
Unrestricted: This component of net position consists of net position that does not meet the definition of “restricted.”
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
15 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
OPERATING AND NON-OPERATING REVENUES
Operating revenues include revenue from the sale of electricity to customers for the CCA Program, and assessments and fees for the mPOWER program.
Investment income is considered non-operating revenue.
REVENUE RECOGNITION
Pioneer recognizes revenue on the accrual basis. This includes invoices issued to customers during the reporting period and electricity estimated to have been delivered but not yet billed.
Management estimates that a portion of the billed amounts will be uncollectible. Accordingly, an allowance for uncollectible accounts has been recorded.
OPERATING AND NONOPERATING EXPENSES
Operating expenses include the costs of electricity and services, and administrative expenses.
Expenses not meeting this definition are reported as nonoperating expenses, including interest expense.
ELECTRIC POWER PURCHASED
During the normal course of business, Pioneer purchases electric power from numerous suppliers.
Electricity costs include the cost of energy and capacity arising from bilateral contracts with energy suppliers as well as generation credits, and load and other charges arising from Pioneer’s participation in the California Independent System Operator’s (CAISO) centralized market. The cost of electricity and capacity is recognized as “Cost of Electricity” in the Statements of Revenues, Expenses and Changes in Net Position.
To comply with the State of California’s Renewable Portfolio Standards (RPS) and self-imposed benchmarks, Pioneer acquires RPS eligible renewable energy evidenced by Renewable Energy Certificates (Certificates) recognized by the Western Renewable Energy Generation Information System (WREGIS). Pioneer obtains Certificates with the intent to retire them and does not sell or build surpluses of Certificates with a profit motive. Pioneer recognizes an expense on a monthly basis that corresponds to the volume of electricity sold to its customers. This expense recognition increases accrued cost of electricity reported on the Statements of Net Position. Payments made to suppliers reduce accrued cost of electricity.
Pioneer purchases capacity commitments from qualifying generators to comply with the California Public Utilities Commission’s Resource Adequacy Program. The goals of the Resource Adequacy Program are to provide sufficient resources to CAISO to ensure the safe and reliable operation of the grid in real-time and to provide appropriate incentives for the siting and construction of new resources needed for reliability in the future.
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
16 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
SECURITY DEPOSITS FROM ENERGY SUPPLIERS
Various contracts entered into by Pioneer require the supplier to provide Pioneer with a security deposit. These deposits are generally held for the term of the contract or until the completion of certain benchmarks. Deposits are classified as current or noncurrent liabilities depending on the length of the time the deposits will be held.
STAFFING COSTS
Pioneer pays employees bi-weekly and fully pays its obligation for health benefits and contributions to its defined contribution retirement plan each month. Pioneer is not obligated to provide post-employment healthcare or other post-employment benefits (OPEB) and, accordingly, no related liability is recorded in these financial statements. Pioneer provides compensated time off, and the related liability is recorded in these financial statements.
INCOME TAXES
Pioneer is a joint powers authority under the provision of the California Government Code and is not subject to federal or state income or franchise taxes.
ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
RECLASSIFICATIONS
Certain amounts in the prior-year financial statements have been reclassified for comparative purposes to conform to the presentation of the current-year financial statements. These reclassifications did not result in any change in previously reported net position or change in net position.
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
17 3. CASH AND CASH EQUIVALENTS
Prior to April 2021, the Placer County Treasurer served as Pioneer’s Treasurer. As such, Pioneer was required to maintain its cash in the Placer County Treasury. Additionally, Pioneer’s Series 2017 Revenue Bond held by the Placer County Treasurer’s Pool (the Treasurer’s Pool) requires Pioneer to maintain its cash balances in the Placer County Treasury as long as the bonds are outstanding. During the year ended June 30, 2021, Pioneer repaid the 2017 Revenue Bond and appointed a new treasurer. Pioneer moved its cash and cash equivalents related to its CCA program to a private bank. Pioneer’s cash and cash equivalents related to its mPower program remain in the Place County Treasury.
California Government Code Section 53600, et. seq., and the Placer County Treasurer’s Investment Policy authorizes the following investments: U.S. Treasury securities, U.S. agency securities, local agency bonds, bankers acceptances, commercial paper, negotiable certificates of deposit, repurchase agreements, corporate notes, collateralized certificates of deposit, California Local Agency Investment Fund (LAIF), Certificate of Deposit Account Registry Services (CDARS) certificates of deposit, other collateralized deposits, and supranational investments.
Other allowable investments pursuant to Government Code Section 53601, although restricted by the Treasurer’s Investment Policy, include mutual funds, mortgage and collateral-backed securities, asset-backed securities, reverse repurchase agreements, and joint powers agency investment pools. The Treasurer’s Investment Policy objectives are safety, liquidity and yield in that order.
GASB Statement No. 40, Deposit and Investment Risk Disclosures – an amendment of GASB Statement No. 3, requires additional disclosures about a government’s deposit and investment risks that include credit risk, custodial credit risk, concentration of credit risk and interest rate risk. Pioneer’s deposits with the County Treasury are subject to the risk policies contained in the County Treasurer’s Investment Policy.
The Placer County Treasurer has a Treasury Review Panel, which performs regulatory oversight over the Pool as required by the Placer County Treasurer’s Investment Policy. Investments are stated at fair value in accordance with GAAP. However, the value of Pioneer’s deposits in the Pool, is determined on an amortized cost basis, which is different than the fair value of Pioneer’s position in the pool. Pioneer’s deposits in the Pool as of June 30, 2021 and 2020 are stated at fair value. Placer County’s comprehensive annual financial report, containing information relating to the Pool’s cash and investments by risk category, can be obtained from the County Auditor-Controller’s office. The Pool is not registered with the Securities and Exchange Commission as an investment company.
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
18 3. CASH AND CASH EQUIVALENTS (Continued)
FAIR VALUE MEASUREMENT
Pioneer categorizes the fair value measurements of its investments based on the hierarchy established by GAAP, which provides guidance for determining a fair value measurement for reporting purposes and applying fair value to certain investments and disclosures related to all fair value measurements.
The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs and Level 3 inputs are significant unobservable inputs. Placer County’s comprehensive annual financial report, containing information relating to the Pool’s cash and investments fair value hierarchy, can be obtained from the County Auditor-Controller’s office.
CUSTODIAL CREDIT RISK
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository institution, a depositor will not be able to recover deposits or will not be able to recover collateral securities that are in possession of an outside party. The custodial credit risk for investments is the risk that, in the event of failure of the counterparty (i.e. broker-dealer) to a transaction, the investor will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Treasurer’s Investment Policy contain the following provision for deposits: the California Government Code requires that a financial institution secure deposits made by state and local governmental units by pledging securities an undivided collateral pool held by a depository regulated under state law. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
19 3. CASH AND CASH EQUIVALENTS (Continued)
INTEREST RATE RISK
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity its fair value is to changes in market interest rates. The weighted average maturity of the Pool as of June 30, 2021 and 2020 was 643 days and 339 days, respectively.
CREDIT RISK
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The Pool has not been credit rated.
4. ACCOUNTS RECEIVABLE
Accounts receivable were as follows as of June 30:
2021 2020
Accounts receivable from customers 10,886,307 $ 9,619,536 $ Allowance for uncollectible accounts (2,373,974) (866,878) Net accounts receivable $ 8,512,333 $ 8,752,658
The majority of account collections occur within the first few months following customer invoicing. Pioneer estimates that a portion of the billed accounts will not be collected. Pioneer continues collection efforts on accounts in excess of de minimis balances. Once approved collection efforts are exhausted for closed accounts, the receivables are written off. During the Covid-19 pandemic, certain collection provisions have been suspended for active, but delinquent accounts, that may also benefit from receiving California Arrearage Payment Program (CAPP) funding which is estimated to bring relief for certain delinquent residential customers during the subsequent fiscal year. The allowance stated in these financial statements has not been reduced for the potential CAPP benefit as some uncertainties as to the timing and amount of collections exist. The allowance for uncollectible accounts at the end of a period includes amounts billed during the current and prior fiscal years.
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
20 5. DEBT
BONDS PAYABLE
CCA PROGRAM REVENUE BOND, SERIES 2017 (LINE OF CREDIT)
In December of 2017, the Pioneer Governing Board authorized the issuance of Revenue Bond Series 2017 in the form of a draw-down bond in the maximum amount of $40 million to finance its initial purchases of electricity, prior to receiving revenue after the close of its initial billing cycles. The Revenue Bond Series 2017 draw-down feature operates as a line of credit. Additional draws can be made anytime. The bonds are callable for redemption at the option of Pioneer, in whole or in part on the first business day of any month and may be redeemed prior to maturity by payment of principal, plus accrued interest to date of redemption, without premium. The bonds mature on June 1, 2023, at which time the outstanding balance must be paid in full (balloon payment). The outstanding balance is amortized to June 1, 2023, and interest is payable semi-annually and a minimum principal payment is required once a year, based on the amortized balance. The bond was fully repaid in May 2021.
mPOWER PROGRAM REVENUE BONDS
On January 26, 2017, the Pioneer Board authorized the issuance of revenue bonds to provide the capital necessary for financing residential property improvements in the amount of $25 million, and in the amount of $25 million for non-residential property improvements. Pioneer uses the designation “R” in its bond series naming system to signify bonds financing residential improvements and “NR” to signify bonds financing non-residential improvements. Revenue bonds issued prior to July 1, 2020 are listed below.
During the fiscal year ended June 30, 2021, Pioneer issued revenue bonds Series R 2020-21 and Series NR 2020-21 in the amounts of $1.5 million and $128,000, respectively. All mPOWER Program series bonds are classified as direct borrowings held in the Placer County Treasurer’s Investment Pool and are payable solely from assessments and fees from participating property owners.
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
21 5. DEBT (Continued)
BONDS PAYABLE (CONTINUED)
The following is a summary of Pioneer’s bonds outstanding at June 30, 2021:
Maturity
Interest
Rates Annual Principal
Issuance
Amount
Outstanding
Balance June
30, 2021
Type of indebtedness
Revenue bonds
(mPOWER Program)
Series R 2016-17 9/2/2037 3.00% $7.5K to $15.1K 492,589 $ 190,701 $ Series R 2017-18 9/2/2038 3.00% $88.9K to $187.3K 5,380,276 2,396,687 Series NR 2017-18 9/2/2038 3.00% $4K to $11K 138,323 130,576 Series R 2018-19 9/2/2039 4.50% $91.7K to $189.2K 5,656,485 2,615,291 Series NR 2018-19 9/2/2039 4.50% $8.3K to $27.9K 418,152 322,617 Series R 2019-20 9/2/2040 4.50% $65.3K to $164.6K 2,730,091 2,183,975 Series NR 2019-20 9/2/2040 4.50% $1.6K to $4.8K 544,507 58,342 Series R 2020-21 9/2/2041 4.50% $52K to $95.8K 1,544,622 1,544,622 Series NR 2020-21 9/2/2031 4.50% $9.7K to $16.4K 128,249 128,249 Total (mPOWER Program) 17,033,294 $ 9,571,060
Amounts due within one year 272,420
Amounts due after one year 9,298,640 $
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
22 5. DEBT (Continued)
NOTE PAYABLE
In May 2021, Pioneer borrowed $10,500,000 from Umpqua Bank at an interest rate of 3.85% per annum. The monthly payment of principal and interest is $76,880 and the loan matures on April 30, 2036. Pioneer has pledged net revenues to secure payment of the note.
The following is a summary of changes in bonds and note payable for the year ended June 30, 2021:
Balance July
1, 2020 Additions
Principal
Repayments
Balance June
30, 2021
Due Within
One Year
Bond Title, Series Number
2017 Revenue Bond
Series 2017 (CCA) 10,470,000 $ - $ (10,470,000) $ - $ - $ Series R 2016-17 (mPOWER) 291,486 - (100,785) 190,701 7,511 Series R 2017-18 (mPOWER) 3,501,904 - (1,105,217) 2,396,687 88,964 Series NR 2017-18 (mPOWER) 134,562 - (3,986) 130,576 4,225 Series R 2018-19 (mPOWER) 4,364,009 - (1,748,718) 2,615,291 91,731 Series NR 2018-19 (mPOWER) 409,652 - (87,035) 322,617 13,101 Series R 2019-20 (mPOWER) 2,697,478 - (513,503) 2,183,975 65,303 Series NR 2019-20 (mPOWER) 544,507 - (486,165) 58,342 1,586 Series R 2020-21 (mPOWER) - 1,544,622 - 1,544,622 -
Series NR 2020-21 (mPOWER) - 128,249 - 128,249 -
Total $ 1,672,871 22,413,598 $ (14,515,409) $ 9,571,060 $ 272,420 $ Balance July
1, 2020 Additions
Principal
Repayments
Balance June
30, 2021
Due Within
One Year
Note Payable
Umpqua Bank - $ 10,500,000 $ (44,316) $ 10,455,684 $ 529,251 $ The following is a summary of changes in bonds payable for the year ended June 30, 2020:
Balance July
1, 2019 Additions
Principal
Repayments
Balance June
30, 2020
Due Within
One Year
Bond Title, Series Number
2017 Revenue Bonds
Series 2017 (CCA Program) 14,405,000 $ - $ (3,935,000) $ 10,470,000 $ 250,000 $ Series R 2016-17 (mPOWER) 354,769 - (63,283) 291,486 10,118 Series R 2017-18 (mPOWER) 4,839,028 - (1,337,124) 3,501,904 123,740 Series NR 2017-18 (mPOWER) 138,323 - (3,761) 134,562 3,986 Series R 2018-19 (mPOWER) 5,478,245 - (1,114,236) 4,364,009 141,458 Series NR 2018-19 (mPOWER) 418,152 - (8,500) 409,652 14,392 Series R 2019-20 (mPOWER) - 2,730,091 (32,613) 2,697,478 - Series NR 2019-20 (mPOWER) - 544,507 - 544,507 -
Total $ 3,274,598 25,633,517 $ (6,494,517) $ 22,413,598 $ 543,694 $
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
23 5. DEBT (Continued)
Minimum future obligations for the outstanding mPOWER Program Revenue Bonds and the note payable are as follows:
Principal Interest Total
Year ended June 30,
2022 272,420 $ 563,399 $ 835,819 $
2023 350,513 558,780 909,293
2024 371,544 537,502 909,045
2025 390,951 514,992 905,943
2026 411,702 491,278 902,980
2027-2031 2,406,466 2,052,384 4,458,850
2032-2036 2,760,153 1,227,093 3,987,247
2037-2041 2,511,508 369,960 2,881,468
2042 95,803 2,156 97,959
Total 9,571,060 $ 6,317,544 $ 15,888,604 $
Principal Interest Total
Year ended June 30,
2022 529,251 $ 393,313 $ 922,564 $
2023 549,991 372,573 922,564
2024 571,543 351,021 922,564
2025 593,940 328,624 922,564
2026 617,214 305,349 922,563
2027-2031 3,468,393 1,144,427 4,612,820
2032-2036 4,125,352 409,464 4,534,816
Total 10,455,684 $ 3,304,771 $ 13,760,455 $
mPOWER Program Revenue Bonds
Note Payable
6. DEFINED CONTRIBUTION RETIREMENT PLAN
Pioneer established the Pioneer Community Energy 457(b) Plan (the Plan), a defined contribution retirement plan, to provide benefits at retirement for its employees. The Plan is administered by a third-party retirement plan administrator. As of June 30, 2021, there were ten active plan members. Pioneer contributes a minimum of $1,000 per employee per month to the Plan and contributed a prorated amount of $141,000 and $48,000 in total during the fiscal years ended June 30, 2021 and 2020, respectively. Plan provisions and contribution levels are established and may be amended by the Pioneer Board at any time. The Plan does not create long-term liabilities such as those associated with defined benefit pension plans.
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
24 7. RELATED PARTY TRANSACTIONS
Placer County provides administrative and accounting services to Pioneer and allocates costs related to these services and facilities to Pioneer. For the fiscal years ended June 30, 2021 and 2020, Placer County incurred and charged $460,000 and $832,000, respectively, to Pioneer for salaries, benefits, overhead, operating costs and administrative services related to both the CCA and mPOWER Programs. Additionally, Placer County provides legal services to Pioneer for which Placer County incurred and charged Pioneer $143,000 and $124,000 for salaries, benefits and related overhead for the fiscal years ended June 30, 2021 and 2020, respectively.
Conversely, Pioneer also incurred and charged Placer County for administrative collections costs related to mPOWER assessments. The amount charged by Pioneer to Placer County was $19,000 and $37,000 for the years ended June 30, 2021 and 2020, respectively.
During the year ended June 30, 2021, Pioneer successfully transitioned to an in-house staffing model for key positions. This will significantly decrease the services Placer County will provide the CCA in future years, however, Placer County will continue to administer mPOWER collections and assessments.
8. RISK MANAGEMENT
Pioneer is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; and errors and omissions. During the year ended June 30, 2021, Pioneer purchased liability and property insurance from commercial carriers. Coverage includes property, general liability, errors and omissions and non-owned automobile. Pioneer has general liability coverage of $4,000,000 as well as $10,000,000 of cyber liability coverage. Deductibles on the various policies range from $0 to $10,000.
9. PURCHASE COMMITMENTS
In the ordinary course of business, Pioneer enters into various power purchase agreements in order to acquire renewable and other energy and electric capacity. The price and volume of purchased power may be fixed or variable. Variable pricing is generally based on the market price of either natural gas or electricity at the date of delivery. Variable volume is generally associated with contracts to purchase energy from as-available resources such as solar, wind, and hydro-electric facilities.
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
25 9. PURCHASE COMMITMENTS (Continued)
The following table details the obligations to purchase existing energy, renewable, and resource adequacy (RA) contracts as of June 30, 2021:
Year ending June 30,
2022 83,400,000 $
2023 75,600,000
2024 45,700,000
2025 29,000,000
2026 18,100,000
2027-36 79,700,000
Total 331,500,000 $
As of June 30, 2021, Pioneer had outstanding non-cancelable commitments to professional service providers through June 2024, for services yet to be performed. Fees associated with these contracts are based on volumetric activity and are estimated to be approximately $3.3 million.
10. OPERATING LEASE
In May 2018, Pioneer entered into an 86-month non-cancelable lease for office space in Rocklin.
The rental agreement is for a term of 88 months, with an option to renew for two consecutive terms of five years each, for a total of 10 years.
Rental expense under this lease was $116,000 and $112,000 for the years ended June 30, 2021 and 2020, respectively.
As of June 30, 2021, future minimum lease payments under this lease were projected as follows:
Year ending June 30,
2022 118,800 $
2023 122,300
2024 137,500
2025 141,600
2026 70,500
Total 590,700 $
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2021 AND 2020
26 11. FUTURE GASB PRONOUNCEMENTS
The requirements of the following GASB Statements are effective for years ending after June 30, 2021:
GASB has approved GASB Statement No. 87, Leases, GASB 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, GASB 96, Subscription-Based Information Technology Arrangements; and GASB No. 97, Certain Component Unit Criteria and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. When they become effective, application of these standards may restate portions of these financial statements.
12. SUBSEQUENT EVENT
In response to the COVID-19 pandemic, California created the California Arrearage Payment Program that will assist certain customers with utility bill relief for the period of March 2020 to June 2021. Pioneer is participating in that program, and it is anticipated that funding will be distributed in January 2022. Pioneer is estimating that it will receive approximately $1,400,000 that will be used to provide customer bill relief.
During May 2021, Pioneer moved its funds (with the exception of mPOWER funds) from the Placer County Treasury to a private bank. Pioneer had been operating under the Placer County Investment Policy, but in July 2021 the Board approved Pioneer’s own Investment Policy that will govern Pioneer’s deposits and investments.
The Pioneer Board directed the winding down of the mPOWER program and the last day applications could be submitted for funding was August 31, 2021. After the last application is approved and funded, the administration of the program will only be the administration of the assessments, servicing the outstanding bonds and any property lien pay offs. Placer County will staff the administration of these tasks on behalf of Pioneer.
PIONEER COMMUNITY ENERGY
SUPPLEMENTARY INFORMATION
27 2021 2020
CCA
Program
mPOWER
Program
Total CCA
Program
mPOWER
Program
Total
ASSETS
Current assets
Cash and cash equivalents 26,001,679 $ 1,674,700 $ 27,676,379 $ 23,565,838 $ 1,371,542 $ 24,937,380 $ Restricted cash and investments - 596,530 596,530 - 451,022 451,022 Accounts receivable, net of allowance 8,512,333 - 8,512,333 8,752,658 - 8,752,658 Accrued revenue 3,869,044 - 3,869,044 4,923,233 - 4,923,233 Other receivables 301,267 - 301,267 18,859 331,021 349,880 Interest receivable - 102,674 102,674 - 158,433 158,433 Contractual assessment receivable - 295,433 295,433 - - - Prepaid expenses 475,586 - 475,586 165,548 - 165,548
Deposits 180,000 - 180,000 - - -
Total current assets 39,339,909 2,669,337 42,009,246 37,426,136 2,312,018 39,738,154 Noncurrent assets
Deposits 3,192,759 - 3,192,759 3,029,660 - 3,029,660
Contractual assessments receivable - 7,392,263 7,392,263 - 10,095,743 10,095,743 Total noncurrent assets 3,192,759 7,392,263 10,585,022 3,029,660 10,095,743 13,125,403 Total assets 42,532,668 10,061,600 52,594,268 40,455,796 12,407,761 52,863,557
LIABILITIES
Current liabilities
Accrued cost of energy 7,425,535 - 7,425,535 7,901,441 - 7,901,441 Accounts payable 326,898 18,150 345,048 254,268 382 254,650 Other accrued liabilities 144,230 23,829 168,059 50,632 32,123 82,755 Interest payable 33,545 103,447 136,992 22,044 157,329 179,373 Supplier security deposits 159,750 - 159,750 21,300 - 21,300 Energy surcharges due to other governments 161,498 - 161,498 - - - Bonds payable - 272,420 272,420 250,000 293,694 543,694 Note payable 529,251 - 529,251 - - -
Total current liabilities 8,780,707 417,846 9,198,553 8,499,685 483,528 8,983,213 Noncurrent liabilities
Bonds payable - 9,298,640 9,298,640 10,220,000 11,649,904 21,869,904 Note payable 9,926,433 - 9,926,433 - - -
Total noncurrent liabilities 9,926,433 9,298,640 19,225,073 10,220,000 11,649,904 21,869,904 Total liabilities 18,707,140 9,716,486 28,423,626 18,719,685 12,133,432 30,853,117
NET POSITION
Unrestricted 23,825,528 345,114 24,170,642 21,736,111 274,329 22,010,440 Total net position 23,825,528 $ 345,114 $ 24,170,642 $ 21,736,111 $ 274,329 $ 22,010,440 $
COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2021 AND 2020
PIONEER COMMUNITY ENERGY
SUPPLEMENTARY INFORMATION
28 2021 2020
CCA
Program
mPOWER
Program
Total CCA
Program
mPOWER
Program
Total
OPERATING REVENUES
Electricity sales, net 81,929,623 $ - $ 81,929,623 $ 79,558,745 $ - $ 79,558,745 $ Service charges - 667,820 667,820 - 948,938 948,938
Total operating revenues 81,929,623 667,820 82,597,443 79,558,745 948,938 80,507,683
OPERATING EXPENSES
Cost of electricity 73,862,156 - 73,862,156 63,408,751 - 63,408,751 Contract services 3,582,863 145,991 3,728,854 3,438,886 91,749 3,530,635 Staff compensation 1,636,154 66,265 1,702,419 720,756 226,978 947,734 General and administration 384,881 9,365 394,246 500,305 11,574 511,879 Total operating expenses 79,466,054 221,621 79,687,675 68,068,698 330,301 68,398,999 Operating income 2,463,569 446,199 2,909,768 11,490,047 618,637 12,108,684
NONOPERATING REVENUES (EXPENSES)
Investment gains (losses) (74,209) 5,168 (69,041) 470,813 24,420 495,233 Interest and financing expense (299,943) (380,582) (680,525) (373,447) (467,239) (840,686) Nonoperating revenues (expenses), net (374,152) (375,414) (749,566) 97,366 (442,819) (345,453) CHANGE IN NET POSITION 70,785 2,089,417 2,160,202 11,587,413 175,818 11,763,231 Net position at beginning of year 21,736,111 274,329 22,010,440 10,148,698 98,511 10,247,209 Net position at end of year 23,825,528 $ 345,114 $ 24,170,642 $ 21,736,111 $ 274,329 $ 22,010,440 $
COMBINING STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
YEARS ENDED JUNE 30, 2021 AND 2020
PIONEER COMMUNITY ENERGY
SUPPLEMENTARY INFORMATION
29 2021 2020
CCA
Program
mPOWER
Program Total CCAProgram
mPOWER
Program Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 83,578,688 $ - $ 83,578,688 $ 77,021,912 $ - $ 77,021,912 $ Other operating receipts 168,042 652,866 820,908 21,300 879,592 900,892 Contractual assessment received, net - 2,757,926 2,757,926 - 12,146 12,146 Payments to suppliers for electricity (75,277,415) - (75,277,415) (59,344,640) - (59,344,640) Payments for goods and services (3,857,269) (130,925) (3,988,194) (3,962,821) (105,157) (4,067,978) Payments for staff compensation (1,555,765) (66,267) (1,622,032) (720,756) (226,979) (947,735) Payments of taxes and surcharges to other governments (262,321) - (262,321) (316,158) - (316,158) Net cash provided by operating activities 2,793,960 3,213,600 6,007,560 12,698,837 559,602 13,258,439
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Note payable proceeds 10,500,000 - 10,500,000 - - -
Bond proceeds - - - - 590,429 590,429
Principal paid on long-term debt (10,514,314) (2,372,538) (12,886,852) (3,935,000) 124,651 (3,810,349) Interest and related expenses payments (288,442) (434,464) (722,906) (381,733) (435,523) (817,256) Net cash provided (used) by noncapital financing activities (302,756) (2,807,002) (3,109,758) (4,316,733) 279,557 (4,037,176)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received (paid) (55,363) 42,068 (13,295) 476,867 26,109 502,976 Net change in cash and cash equivalents 2,435,841 448,666 2,884,507 8,858,971 865,268 9,724,239 Cash and cash equivalents at beginning of year 23,565,838 1,822,564 25,388,402 14,706,867 957,296 15,664,163 Cash and cash equivalents at end of year 26,001,679 $ 2,271,230 $ 28,272,909 $ 23,565,838 $ 1,822,564 $ 25,388,402 $ Reconciliation to the Statement of Net Position
Cash and cash equivalents-current 26,001,679 $ 1,674,700 $ 27,676,379 $ 23,565,838 $ 1,371,542 $ 24,937,380 $ Restricted cash and investments - 596,530 596,530 - 451,022 451,022 Cash and investments 26,001,679 $ 2,271,230 $ 28,272,909 $ 23,565,838 $ 1,822,564 $ 25,388,402 $ Reconciliation of Operating Income to Net Cash Provided by Operating Activities
2021 2020
CCA
Program
mPOWER
Program Total CCA
Program
mPOWER
Program Total
Operating income 2,463,571 $ 446,197 $ 2,909,768 $ 11,490,047 $ 618,637 $ 12,108,684 $ Adjustments to reconcile operating income to net
cash provided by operating activities:
Revenue adjusted for allowance for uncollectible accounts 1,507,096 - 1,507,096 505,787 - 505,787 (Increase) decrease in:
Accounts receivable (1,266,772) - (1,266,772) (2,025,576) - (2,025,576) Accrued revenue 1,054,189 - 1,054,189 (1,255,659) - (1,255,659) Other receivables (3,059,180) 2,757,926 (301,254) - 12,146 12,146 Prepaid expenses (310,039) - (310,039) 1,912,039 - 1,912,039 Deposits (343,099) - (343,099) - - -
Contractual assessments receivable 2,757,600 - 2,757,600 - - - Increase (decrease) in:
Accrued cost of electricity (475,905) - (475,905) 2,291,730 - 2,291,730 Accounts payable 141,897 17,771 159,668 (68,988) (214) (69,202) Other accrued liabilities 93,924 (8,294) 85,630 45,358 (70,967) (25,609) Energy surcharges due to other governments 92,228 - 92,228 (77,541) - (77,541) Supplier security deposits 138,450 - 138,450 (118,360) - (118,360) Net cash provided by operating activities 2,793,960 $ 3,213,600 $ 6,007,560 $ 12,698,837 $ 559,602 $ 13,258,439 $ YEARS ENDED JUNE 30, 2021 AND 2020
COMBINING STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2021 AND 2020
SANTA ROSA PETALUMA
RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. 3562 Round Barn Circle, Suite 200
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pbllp.com
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance with
Government Auditing Standards
Independent Auditor's Report
To the Board of Directors
Pioneer Community Energy
Auburn, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Pioneer Community Energy (Pioneer), as of and for the years ended June 30, 2021 and 2020, and the related notes to the financial statements, which collectively comprise Pioneer's basic financial statements, and have issued our report thereon dated January 14, 2022.
Internal Control over Financial Reporting
In planning and performing our audits of the financial statements, we considered Pioneer's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Pioneer's internal control. Accordingly, we do not express an opinion on the effectiveness of Pioneer's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of Pioneer's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audits we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
• • p Is E NT I & BR I N I( ER LLP
Certified Public Accountants & Adviso rs
RSMtfs"Ama";,;; RS~A
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance with
Government Auditing Standards (continued)
Independent Auditor's Report (continued)
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Pioneer's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audits, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Pioneer's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Pioneer's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Santa Rosa, California
January 14, 2022
Staff Report – Item 3
To: The Governing Board
From: Mark Riffey, Director, Public Affairs, Marketing and Programs Item 3: Adopt Resolution authorizing the Executive Director to execute a third amendment with JSR Strategies for Communication Services
Date: 1/20/2022
RECOMMENDATION
Adopt Resolution authorizing the Executive Director to execute a third amendment to the contract with JSR Strategies (“JSR”) to increase the not-to-exceed dollar amount to $483,910 and extend the date of expiration to Sept 30, 2022, for Marketing and Communication Services.
BACKGROUND
JSR has been providing marketing and communications services for Pioneer Community Energy (Pioneer) since September 2020. JSR has performed many functions in support of customer awareness and expansion. As an example of the work performed, JSR has conducted a customer survey and performed the related analyses, provided marketing/communications material and feedback, created a communications plan, created content and postings on social media, and provided ad hoc communications feedback related to rates and other Board inquiries. Additionally, JSR led the efforts with the board to create a Strategic Plan.
In June 2021, the Board approved an amendment to increase the not-to-exceed amount of JSR’s contract to $261,670 to continue their support of Pioneer in the communication and marketing efforts.
ANALYSIS & DISCUSSION
The Board strategic planning sessions conducted in May 2021 provided direction to Pioneer Staff in the following areas of follow up related to marketing, communications, and program development:
1. Increase customer participation rate through ongoing communications utilizing various media channels and appearances at local meetings and events
a. Provide greater awareness of who Pioneer is and what value Pioneer provides to the community
b. Provide communication strategy and content in El Dorado County and Placerville With the goal of continuing this ongoing support, Pioneer Staff has worked together with JSR in coming up with the following key tasks in this amendment:
1. JSR will lead the effort to revamp Pioneer’s website. This includes the overall design, content development and launch of the website.
2. JSR will support with strategy, creative development and reporting for all paid media and nonpaid tactics.
3. JSR will support the further development of Pioneer’s library of videos and photographs for use in future communication campaigns.
4. JSR shall continue to manage Pioneer’s social media accounts.
5. JSR will conduct an expanded digital customer satisfaction survey that mirrors the survey from 2019-2020 to better understand community perceptions across Pioneer’s service territory and to compare customer satisfaction in 2022 to our baseline data. fJONEER
COMMUNITY ENERGY
Agenda Item: 3 Agenda Date: 1/20/2022
6. JSR will negotiate and oversee the implementation of all media purchasing on behalf of Pioneer.
STRATEGIC PLAN
This contract amendment supports many aspects of the Strategic Plan.
1. Financial Stability by continuing to re-engage opted out customers to increase the level of customer participation
2. Local Engagement by growing our relationship with all customers.
3. Quality in Service by communicating with our customers on a regular basis and becoming a valuable resource in the community.
FISCAL IMPACT
This recommended contract amendment is $222,240. The work will span two fiscal years and the estimated fiscal breakdown is as follows; $182,240 in FY2021/22 and $40,000 in FY2022/23. A fiscal year 2021-22 budget appropriation increase of $182,240 is needed to provide adequate funding.
ATTACHMENTS
1. Resolution approving the Third Amendment to Consultant Services Agreement with JSR Strategies LLC for Communications Services and Increase Budget Appropriations for Marketing and Communications Contract Services by $182,240
2. JSR Original Contract
3. JSR Amendment #1
4. JSR Amendment #2
Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held January 20, 2022, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, Pioneer Community Energy and JSR Strategies LLC (“JSR”) entered a Consultant Services Agreement for communications and marketing services on September 9, 2020 (“Original Agreement”), wherein JSR agreed to provide communication and marketing support services to Pioneer, with compensation not to exceed $150,000.
WHEREAS, Pioneer and JSR have twice amended the Original Agreement to add additional tasks and compensation, increasing the total not-to-exceed amount to $261,670.
WHEREAS, Pioneer and JSR desire to further amend the Agreement to update the scope of work, amend the compensation by increasing the total not-to-exceed amount to $483,910, and extend the termination date to September 30, 2022, as shown in Exhibit “A.”; and WHEREAS, Increase budget appropriation is needed to fund the contract in fiscal year 2021-22.
In the matter of: RESOLUTION APPROVING THE
THIRD AMENDMENT TO CONSULTANT
SERVICES AGREEMENT WITH JSR
STRATEGIES LLC FOR COMMUNICATIONS
SERVICES AND INCREASE BUDGET
APPROPRIATIONS FOR MARKETING AND
COMMUNICATIONS CONTRACT SERVICES BY
$182,240
2 BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:
1. The above recitals are true and correct.
2. The Governing Board hereby approves the Third Amendment to the Consultant Services Agreement with JSR Strategies LLC, as attached hereto as Exhibit “A,” and authorizes the Executive Director to execute the Third Amendment on behalf of PCE.
3. Fiscal Year 2021-22 Marketing and Communications Contract Services by $182,240.
4. This Resolution shall take effect immediately upon its adoption.
Exhibit A: Third Amendment to Consultant Services Agreement with JSR Strategies LLC Resolution 2022-xx
Date
THIRD AMENDMENT TO CONSULTANT SERVICES AGREEMENT WITH JSR
STRATEGIES LLC FOR COMMUNICATIONS SERVICES
This Third Amendment to the Consultant Services Agreement with JSR Strategies, LLC, for Communications and Marketing Services (“Third Amendment”) is made this 20th day of January 2022, by and between Pioneer Community Energy, a Joint Powers Agency formed under the laws of the State of California (“Pioneer”) and JSR Strategies LLC, a California limited liability company (“JSR”), for the purposes of adding additional compensation and extending the time frame.
Recitals
A. Pioneer and JSR entered into the original Consultant Services Agreement dated September 9, 2020 (“Original Agreement”), wherein JSR agreed to provide communication and marketing support services to Pioneer, with compensation not to exceed $150,000.
B. Pioneer and JSR twice amended the Agreement to add additional tasks and compensation, increasing the total not-to-exceed amount to $261,670 (hereafter, the Original Agreement as amended by the First Amendment and Second Amendments shall be referred to as the “Agreement”).
C. Pioneer and JSR would like to further amend the Agreement to update the scope of work, amend the compensation by increasing the not-to-exceed amount by $222,240 for a total amount not to exceed $483,910, and extend the termination date to September 30, 2022.
Now therefore, for good and valuable consideration, the amount and sufficiency of which is hereby acknowledged, the parties agree as follows:
1. Section 2 of the Agreement (“Payment”) is amended in part to increase the total compensation of the Agreement by $222,240 for a total amount not to exceed of Four hundred and eighty-three thousand nine hundred and ten dollars ($483,910).
2. Exhibit A (“Scope of Services”) of the Agreement is replaced in its entirety by Exhibit A, attached hereto.
3. Exhibit B (“Payment for Services Rendered”) of the Agreement is amended in part to provide that the “Total contract amount shall be as specified in Section 2 of the Agreement.”
4. Section 16 of the Agreement (“Contract Term”) is amended to say, “This Agreement shall remain in place until the Scope of Services described in Attachment A is completed or September 30, 2022, whichever comes first. The contract may also be earlier terminated pursuant to Section 15 of this contract.”
5. All other terms and conditions in the Agreement not otherwise modified by this Third Amendment will remain in full force and effect.
In witness whereof, the Parties entered this Third Amendment on the date written above.
Pioneer Community Energy, JSR Strategies, LLC
A Joint Powers Authority A California Limited Liability Company Donald Eckert Jessica Rhodes
Executive Director Principal and Chief Executive Officer Date: Date:
Approved as to form:
Casey Strong
General Counsel for Pioneer
Date:
Exhibit A
Scope of Services
Pioneer Community Energy – 2022
Change Order 01132022
JSR Strategies requests an enhancement of our contract with Pioneer Community Energy.
Additional contract elements to be completed between February 1, 2022, and September 30, 2022, include:
● Paid Media Procurement and Management
● Social Media Management
● Website Design and Development
● Graphic Design and Project Management
Overview
Pioneer's participation rate as of January 9, 2022, is 89%. This puts Pioneer 3% away from meeting their strategic plan goal of 92% participation rate.
Now that El Dorado County and Placerville are officially customers of Pioneer, JSR recommends continuing our efforts on improving brand awareness, building community trust and engagement and recapturing the individuals that have opted out across both El Dorado and Placer Counties.
PG&E is planning significant rate increases in 2022. To support the efforts to recapture opt outs, Pioneer and JSR want to take advantage of these rate changes to reintroduce the brand to Placer County and El Dorado County and to re-engage with customers who previously opted out. We have collaboratively set the following high-level goals, objectives, and target audiences for our work.
Goal – Raise public awareness about Pioneer Community Energy and the value it provides to the community, while striving towards marketing and communications goals within Pioneer’s Strategic Plan.
Objectives
● Build targeted re-engagement elements and test campaign efforts for Pioneer’s populations who have opted out, including building resources for the following opt-out reasons o Customers who cited costs as the reason for opting out will be the individuals we target the strongest, due to the increase in PG&E’s rates in 2022. Tactics will include:
▪ Direct mailers
▪ Calling efforts
▪ Digital outreach
o Customers who did not list a reason for opting out will be targeted with cost efforts o Customers who cited auto-enrollment as the reason for opting out will be targeted as well with
▪ Direct mailers
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▪ Calling efforts
▪ Digital outreach
▪ In-person outreach
● Conduct a digital and phone-based customer satisfaction survey to understand community perceptions across Pioneer’s service territory
● Ensure social media is clear, consistent and provides options for two-way engagement with customers. Pioneer will branch into Instagram and Next Door in 2022 Target Audiences
● Residential customers
● Small business customers
● Local influencers and leaders
● News media
Proposed Scope of Work
Strategy and Creative
JSR will support with strategy, creative development and reporting for all paid media and nonpaid tactics. Tactics will include:
● Account Management
o Outreach to earned media partners, as requested
o Outreach to requested influencers and newsletter partners ● Content and Design
o Up to 30 social media posts (sized for all channels)
o Up to three direct mailers
o Up to two calling scripts
o Multiple newsprint ads
o Up to two (2) postcards
o Up to two produced radio assets
o Digital and social ads (various sizes, up to 25)
o E-blast/Newsletter content or graphics
o Bus shelter or bench, as media plan allows
o Meet Pioneer, one digital or printable packet of up to 10 pages Photography and Videography
To support Pioneer’s growing asset library, a budget of $15,000 has been allocated for photography and videography services within Pioneer’s service area. JSR recommends this budget be focused on photography of local residents and businesses to grow Pioneer’s social media and website presence.
Social Media Management
JSR shall manage Pioneer Community Energy’s social media accounts as recommended in the outreach plan. This will include Facebook, Instagram and LinkedIn accounts for the duration of the contract. Community management, however, will be a shared responsibility with Pioneer staff. JSR will also support with up to ten content pieces for NextDoor. JSR shall create a campaign content calendar, develop messaging, and post a minimum of one post per week on each platform, from February 1 to June 30. Social media content will be educational and related to industry updates.
Customer Satisfaction Survey
JSR will conduct a digital customer satisfaction survey that mirrors the survey from 2019-2020 but expands into El Dorado and Placer County to understand community perceptions across Pioneer’s service territory and to compare customer satisfaction in 2022 to our baseline data. JSR will create and advertise for the customer satisfaction survey. Pioneer will assist by calling business accounts directly.
Paid Media Procurement and Management
As part of this contract, JSR will negotiate and oversee the implementation of all media purchasing on behalf of Pioneer. This oversight includes placement and rate negotiations, reconciliation and payment of invoices, active stewardship of media programs to ensure optimal performance, and providing performance reports and billing backup at agreed-upon intervals.
We will pre-bill media for each quarter. From the pre-billed amount, we will process payment to media vendors. We will maintain a detailed accounting of how much has been pre-billed, how much has been paid to vendors, the balance to be spent, and how much is remaining. Credits owed, if any, can either be refunded or reallocated.
Throughout the planning process, market-level nuances play a key role in informing our approach and channel selection. In parts of Placer and El Dorado Counties, it is important to acknowledge that portions of the market do not have access to high-speed internet. The median ages of Placer and El Dorado Counties are higher than the rest of the state. These nuances will influence the way we think about and use media to influence audience segments.
Developing a media program that provides equitable reach across Pioneer’s service area/territory and establishes Pioneer as a trusted community partner requires an integrated mix of offline and digital media tactics. Offline media will build and reinforce brand awareness among target audiences. Layered digital media tactics will connect with audience segments at all stages of the decision journey: awareness, consideration, conversion, loyalty.
While the tactical mix will depend on agreed-upon objectives, we recommend the following based on what we currently know about Pioneer:
• Radio & Newsprint – Radio and newsprint advertising are not our preferred channels for building brand and consumer perception, but they can play an important role in quickly delivering relevant information to hyper-local audiences. These channels will be particularly effective at reaching senior audiences who still consume traditional, offline media at higher rates than younger generations. We envision using these channels as tactical supports to localized initiatives such as clinics, specialty services, events, etc.
● Radio
o KFBK
o KKTO
o KSTE
o KAHI
● Print Publications
o Mountain Democrat
o Georgetown Gazette
o Village Life
o Around Here Magazine
o Style Magazine
o Auburn Journal
o Lincoln News Messenger
o Granite Bay View Magazine
o Auburn View Magazine
o Lincoln View Magazine
• Paid Social Media - With nearly 82% of the US population maintaining social media profiles, key channels provide scalable opportunities to connect with target audiences while engaging with content and brands of interest. A recent online survey by GlobalWebIndex found that social media users in the US spend an average of 2 hours and 33 minutes a day on their preferred channels. Engagement with social media increased across all groups following the COVID-19 outbreak, with baby boomers showing the highest likelihood to maintain their increased engagement post-pandemic.
● Geo-targeted social media ads
● Geo-targeted videos
• Display and Search Engine Marketing (SEM) – Display marketing is a type of advertisement that uses photos, text, animations or video on third-party websites to reach users where they go for trusted communications. SEM is a go-to channel for consumers actively looking for information across countless topics. An estimated 93% of all online experiences start with a keyword search.
● Geo-targeted display ads
● Geo-targeted video ads on YouTube and connected TV
● Affinity targeting
● Similar audience ads
• Paid Newsletter Placements from Regional Partners – There are many partners in El Dorado and Placer County who have a paid placement option within their newsletters. JSR will support placements in various regional partner newsletters on Pioneer’s behalf.
Through all of our efforts, we seek to reach 1.2-2.4 million impressions in Pioneer’s service area, engage with 120,000-240,000 people, and to grow our communication channels.
Deliverables will include:
● Overarching Advertising Campaign and Schedule
● Comprehensive Media Plan and Metrics
● Detailed Campaign, Media Plan, and Activations Reporting with Analysis ● Search Engine Marketing Strategy Development and Execution Support ● Monthly Reporting
● Invoicing and Billing Detail at 30-day Intervals
General Outreach Reporting
JSR Strategies shall prepare and submit monthly reports detailing the general outreach efforts conducted during the prior month. JSR shall prepare a Program Year-End report for Pioneer’s review, including a summary of monthly reports; evaluation of each campaign element; relative effectiveness of each on the success of the overall Program; and campaign element metrics and return on investment. JSR shall include recommendations for the continuation or elimination of each campaign element with supporting documentation.
Pioneer will review recommendations and provide direction on each section. Up to two (2) rounds of revisions for each element will be included in this scope. Additional time or development of other assets will be billed based on the hourly rate outlined in the scope.
WEBSITE STRATEGY, DESIGN & DEVELOPMENT
Pioneer’s website is the place people come to opt-out and, as such, is one of the company’s key sales agents and the customer’s first place to seek answers to their questions. Anywhere from 30- 1,300 people visit the site everyday, and as such, the website is the organization’s most essential customer resource center.
Our first step will be to develop a website conversion strategy to identify our baseline and craft goals for key performance indicators for the site. JSR Strategies will submit key performance indicators and a high-level website strategy for review and complete up to two (2) rounds of revisions based on compiled feedback.
Phase 1: Web Design and Development Discovery
Pioneer’s new website will be built on a WordPress platform and hosted on Kinsta (a WordPress host). It will be easy to update and tailored for growth so that it can host Pioneer’s possible future offerings (i.e., podcasts, blogs, programs, etc.) as identified prior to build-out.
To begin the discovery process, we will hold a kick-off meeting to review the project timeline and identify roles related to website development. During this meeting, we will discuss web requirements identified within the website strategy and any relevant integrations. We will review the current design and call out key dates that will inform the timeline. If this meeting defines additional integrations or web capabilities, the cost of the site could increase.
From this meeting, we will create the following deliverables in draft and final versions:
● Website brief
● Project timeline
● Site map
● Chatbot recommendations
Phase 2: Design and Content
Content is key to great design, so JSR will select the best content from your current site and identify missing content, based on our website strategy and approved site map. This contract includes up to 60 hours of proofing or writing additional content. Once our team has all the final content for each key page, the design process will begin.
JSR will create designs with the brand guide as a foundation and the website strategy as a compass. Plans may be shown as follows:
● JSR will create wireframes for complicated and interdependent relevant main pages. o Wireframe designs show rough layouts and content areas o We will meet to discuss the first draft of the wireframes; there will be two (2) rounds of revisions
● JSR will create a full homepage design after the wireframes are reviewed and approved.
o Includes up to two (2) rounds of revisions
● Once the homepage is finalized and approved, we will create full designs for up to three (3) internal pages, as identified in the sitemap/timeline discussion. o Includes one (1) round of revisions
It is essential to work through any content/design issues during this phase before moving on to the development of your site. Additional changes after this phase will result in a supplemental scope of work and will change the launch date accordingly.
This task does not include photography or videography.
Phase 3: Development, Content Entry, and Quality Assurance (QA) During the development phase, JSR will build your site in a password-protected demo environment.
● JSR will enter all final content (approved in Phase 2). ● JSR Strategies will conduct an internal QA process before sending it for review. ● Once final content and internal QA is complete, you will have one (1) round of edits specific to minor content, usability and design concerns. All major feature and design concerns will have been agreed to in the previous stages. ● Once you give final approval, we’ll be ready for the final project phase.
Phase 4 – Site Launch and Training
After approvals are completed, it is time to launch the site. The JSR Strategies team will ensure that the site is live and functioning on desktop and mobile platforms. Within four weeks of your site launch, JSR Strategies will host a project wrap-up meeting and provide training to ensure Pioneer staff are ready to take on the daily management of your site.
Chatbot
In order to complement Pioneer’s efforts to be available to customers, JSR recommends creating a simple and automated chatbot on the Pioneer website. The chatbot will be run by artificial intelligence and provide customer service information to users 24/7. In addition to resolving quick issues or helping users navigate through the site, the chatbot can also ask questions and have clients provide feedback on their perceptions or experiences. This would provide an always-on opportunity for customers to provide feedback.
Partnership Value – $222,240
● Strategy, Creative, Social Management and Reporting – $86,305 ● Additional Services – $39,935
● Media Plan – $56,000
● Website Strategy, Design and Development – $40,000
Staff Report – Item 4
To: The Governing Board
From: Don Eckert, Executive Director
Item 4: Resolution Approving Additional Member to the Audit & Finance Committee and Appoint Additional Member
Date: 1/20/2022
RECOMMENDATION
Adopt Resolution allowing the addition of one Board Member to the Audit & Finance Committee and appoint the additional member.
COMMITTEE RECOMMENDATION
At the September 8, 2021 Audit & Finance Committee meeting, the Committee recommended staff bring to the Governing Board a proposal to add an additional member to the Committee upon the conclusion of the financial audit.
BACKGROUND
At the August 20, 2020 Governing Board meeting, the Board established the Audit & Finance Committee and adopted Financial Policy 1 - Establish an Audit and Finance Committee, containing rules and guidelines for the Committee.
ANALYSIS & DISCUSSION
The purpose of the Audit & Finance Committee is to oversee the accounting and financial reporting process and the audit of Pioneer’s financial statements by the independent auditor, budgeting, financial planning, review financial and administrative policies, monitor internal controls, and oversee investment strategies. The Committee will meet a minimum of twice a year and as needed. The Committee reports to the Governing Board.
The Committee is a Brown-Act meeting.
Composition 2021 Roster Action Needed
-Three Board Members
-Board Members and Alternate
Board Members and Member
Agency Staff nominated by a
Board Member can serve.
-Executive Director
-General Counsel
-Auditor-Controller/Treasurer
Committee Chair – Greg Janda, Rocklin
Committee Vice Chair – Jeff Duncan, Loomis
Committee Member – Dan Karleskint, Lincoln
-Appoint 1 additional
Member
STRATEGIC PLAN
The recommendation supports the Financial Stability & Strategic Growth priority of the strategic plan.
FISCAL IMPACT
There is no fiscal impact with this recommendation.
fJONEER
COMMUNITY ENERGY
Agenda Item: 4 Agenda Date: 1/20/2022
ATTACHMENTS
1. Resolution approving one additional Board Member to the Audit & Finance Committee Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held January 20, 2022, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, on August 20, 2020 the Governing Board adopted Resolution No. 2020-12 to establish an Audit & Finance Committee; and
WHEREAS, the purpose of the Audit & Finance Committee is to oversee the accounting and financial reporting process and the audit of Pioneer’s financial statements by the independent auditor, budgeting, financial planning, review financial and administrative policies, monitor internal controls, and oversee investment strategies; and WHEREAS, the Governing Board desires to add one additional Board Member to the Audit & Finance Committee.
BE IT RESOLVED, the Governing Board of Pioneer Community Energy hereby finds, declares, and resolves as follows:
1. The above recitals are true and correct.
2. The Governing Board hereby approves one additional Board Member to the Audit & Finance Committee to total four (4) Board Members, and authorizes the Executive Director or his designee to update the rules and guidelines for the Audit and Finance Committee adopted with Resolution No. 2020-12 to be consistent with this Resolution.
3. The Resolution shall take effect immediately upon its adoption.
In the matter of: RESOLUTION APPROVING ONE
ADDITIONAL BOARD MEMBER TO THE AUDIT &
FINANCE COMMITTEE
Staff Report – Item 5
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 5: Resolution Approving Amendment No. 4 to the Amended and Restated Joint Exercise of Powers Agreement (“JPA”) for Pioneer Community Energy to Amend the Limitations on Power Designation in the Joint Powers Agreement.
Date: 1/20/2022
RECOMMENDATION
Approve Resolution approving Amendment No. 4 to the Amended and Restated Joint Exercise of Powers Agreement (“JPA”) for Pioneer Community Energy to Amend the Limitations on Power Designation in the Joint Powers Agreement.
BACKGROUND
Pioneer Community Energy (Pioneer) is a Joint Powers Authority that was initially formed pursuant to the Joint Exercise of Powers Act, Government Code Section 6500 et seq. (the “Act”), when Placer County and the City of Colfax authorized and approved the Joint Powers Agreement (JPA). Section 6509 of the Act provides that the manner in which a Joint Powers Authority can exercise power is subject to the restrictions imposed on one of the contracting parties, and that such party must be designated in the JPA. The Pioneer JPA currently states that Pioneer is subject to the restrictions upon the manner of exercise power possessed by Placer County. It is staff and the General Counsel’s recommendation that the Pioneer JPA be amended to name the City of Colfax as the party for establishing the limitation on powers, as the City of Colfax is a general law city.
The Amended and Restated JPA requires that Pioneer provide all Member Agencies with written notice of amendments at least 30 days prior to the date upon which the Board would vote on such amendments. At the November 18th 2021, Board meeting, the Board authorized that all Member Agencies receive notice that the Pioneer Board would be voting on an amendment to the Amended and Restated JPA that would revise the Limitations on Power designation from the County of Placer to the City of Colfax, which is a general law city.
That notice, including supplemental information on the purpose of the proposed amendment, was sent to all member agencies December 10th, 2021, more than 30 days before the January 20th, 2022 Board consideration of the JPA amendment.
ANALYSIS & DISCUSSION
The primary motivation for the proposed amendment is the difference between the budget adoption processes for California counties and what is permitted with general law cities. County budget adoption process follow one of two schedules with specified public notice requirements. Meeting the deadlines in the county budget adoption process can be a challenge for a joint powers authority, such as Pioneer, where the board typically meets once per month, rather than two or more times each month. The county requirements also can make it more challenging for a joint powers authority to respond quickly to fiscal changes. fJONEER
COMMUNITY ENERGY
Agenda Item: 5 Agenda Date: 1/20/2022
The general law cities may devise their own budget procedures in order to ensure transparency and adequate public process. Pioneer’s expected budget development and adoption process include:
Discussion and input of the proposed budget from the Audit and Finance Committee in May, Discussion and input of the proposed budget from the Board during May, Board consideration of a recommended budget during June Public input during budget development is received at each of the May and June meetings.
STRATEGIC PLAN
Strategic Priority 4: Operational Excellence Reliability is central to our efforts and a core value of Pioneer. By prioritizing operational excellence, we retain our independence and agility as a provider while supporting our community by offering more options for reliable energy.
FISCAL IMPACT
There is no fiscal impact with this report.
ATTACHMENTS
1. December 7, 2021 memo Purpose of Proposed Amendment to Joint Powers Agreement
2. Resolution approving Amendment No. 4 to the Amended and Restated JPA PIONEERCOMMUNITYENERGY.CA.GOV
2510 Warren Drive, Suite B
Rocklin CA 95677
To: The Governing Board
Member Agencies
From: Brad Koehn, Director of Finance and Administration and Casey Strong, Acting General Counsel
Subject: Purpose of Proposed Amendment to Joint Powers Agreement Date: December 7, 2021
State law provides that the manner in which a joint powers authority can exercise power is subject to the restrictions imposed on one of the contracting parties. (Gov. Code § 6509.) The Amended and Restated Joint Powers Agreement for Pioneer Community Energy (the “JPA”) currently designates Placer County as this entity. Staff has proposed amending the JPA to change the limiting entity to the City of Colfax, a general law city. The Board of Directors will vote on the proposed JPA Amendment on January 20, 2022. This memo is intended to provide more information about the reason for the proposal.
The primary motivation for the proposed amendment is the difference between the budget adoption processes for California counties and general law cities. General law cities are not required by State law to adopt a budget, although most (if not all) do. Cities may devise their own budget procedures in order to ensure transparency and adequate public process. Once a city adopts a budget, it must be filed with the County auditor within 60 days after the start of the city’s fiscal year. (Gov. Code § 53901.)
Counties are required by State law to adopt a budget. The process by which the budget must be developed and the basic information that must be included are delineated in the County Budget Act, Gov. Code §§ 29000 et seq. An overview of the process is provided below. Meeting the deadlines in the county budget adoption process can be a challenge for a joint powers authority such as Pioneer, where the Board typically meets once per month, rather than two or more times each month. The requirements also can make it more challenging for a joint powers authority to respond quickly to fiscal changes.
Counties must follow one of two schedules for adopting a budget. The requirements and deadlines of the first schedule are as follows:
• On or before June 30 of each year: A recommended budget must be submitted to, considered, and approved by the Board on an interim basis, including any revisions the Board deems necessary. The Board may make revisions to this interim budget until the final budget is adopted; however, any revisions after the start of the public hearing must be in writing and filed prior to the close of the public hearing, or must be approved by a 4/5 vote. (Gov. Code §§ 29062 - 29064.)
!-·10NEER
COMMUNITY eNeRGY
PIONEERCOMMUNITYENERGY.CA.GOV
2510 Warren Drive, Suite B
Rocklin CA 95677
• On or before September 8: A public notice must be published in a newspaper of general circulation stating (1) that the recommended budget is available for public review and (2) when a public hearing will be held to consider the recommended budget. The Board must conduct the public hearing at least 10 days after the budget is made available to the public.
The Board may continue the public hearing from day to day as needed, but the hearing cannot exceed a total of 14 calendar days. (Gov. Code §§ 29080, 29081.) • On or before October 2: After the public hearing is concluded but no later than October 2nd, the Board must adopt the final budget by resolution. (Gov. Code § 29088.) The requirements and deadlines of the second schedule are as follows:
• On or before May 30 of each year: The Board must set forth a proposed budget adoption schedule, and publish a public notice in a newspaper of general circulation stating (1) that the recommended budget is available for public review and (2) when a public hearing will be held to consider the recommended budget. (Gov. Code § 29064(c).) • On or before June 20: The Board must conduct a public hearing on the recommended budget, at least 10 days after the budget is made available to the public but no later than June 20th. (Gov. Code § 29064(c).)
• On or before June 30: After the public hearing is concluded but no later than June 30th, the Board must adopt the final budget by resolution. (Gov. Code § 29064(c).) The final budget must include specific information, as set forth in Government Code §§ 29006 to 29008. The resolution must also meet State law requirements by specifying the appropriations by objects of expenditure within each budget unit; other financing uses by budget unit; intrafund transfers by budget unit; transfers-out by fund; appropriations for contingencies, by fund; provisions for nonspendable, restricted, committed, and assigned fund balances, by fund and purpose; and the means of financing the budget requirements. (Gov. Code § 29089.) A copy of the adopted budget must be filed with the California Controller by December 1st. (Gov. Code § 29093.) As discussed above, these requirements are not applicable to general law cities.
Separate from the budget adoption procedures, State law provides for some differences between counties and cities with respect to procurement. For example, counties with a population of less than 500,000 must engage in competitive bidding for public works projects worth more than $4,000, while general law cities must engage in competitive bidding for public works projects worth more than $5,000. (Pub. Contract Code §§ 20121 - 20123, 20162.) Government Code §§ 25500 et seq. defines the role of county purchasing agents, and authorizes the governing body of a county to employ a purchasing agent to enter into contracts for the purchase of materials, supplies, equipment, and other personal property; for the rent of office furnishings and equipment, or for services and public works projects. If a purchasing agent is not designated, a county must advertise for bids for furnishing supplies for at least 10 days in a newspaper of general circulation in the county. (Pub.
Contract Code §§ 25480, 25502.) The same requirement does not apply to cities, although both cities and counties must follow any locally-adopted procurement requirements. !-·10NEER
COMMUNITY eNeRGY
Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held January 20, 2022, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, the Sierra Valley Energy Authority was established on September 9, 2015, between the County of Placer and the City of Colfax, as a joint powers agency pursuant to the Joint Exercise of Powers Act (Government Code Sections 65000 et seq.): and WHEREAS, the Sierra Valley Energy Authority was originally created for the purpose of providing a financing conduit and program expansions platform for the mPOWER Program; and WHEREAS, counties and cities have the power under California law to aggregate electric load, to purchase and supply electricity for themselves and customers within their jurisdictions, by providing a Community Choice Aggregation Program, pursuant to California Public Utilities Code Sections 331.1 and 366.2; and
WHEREAS, the Amended and Restated Joint Exercise of Power Agreement for the Sierra Valley Energy Authority (the “Amended and Restated JPA”) became effective on February 22, 2017; and
WHEREAS, the Amended and Restated JPA allowed for the establishment of a Community Choice Aggregation Program (“CCA”) within the jurisdictions of the Voting Members and authorized the Cities of Auburn, Lincoln, Rocklin, and the Town of Loomis to become Voting Members; and
In the matter of: A Resolution Approving
Amendment No. 4 to the Amended and Restated
Joint Exercise of Powers Agreement (“JPA”) for
Pioneer Community Energy to Amend the
Limitations on Power Designation in the Joint
Powers Agreement
Resolution No. ___
2 WEREAS, on July 17, 2017, the Governing Board of the Sierra Valley Energy Authority took action to rename the brand Sierra Valley Energy Authority as Pioneer Community Energy (“Pioneer”); and
WHEREAS, Section 8.A of the Amended and Restated JPA requires the affirmative vote of at least two-thirds of the Board Members of Pioneer; and
WHEREAS, the Governing Board has previously approved three amendments to the Amended and Restated JPA; and
WHEREAS, pursuant to Government Code Section 6509, the manner in which Pioneer exercises its power is subject to the restrictions upon the manner of exercising power of one of the member agencies, as designated in the Amended and Restated JPA; and WHEREAS, the Governing Board wishes to amend the Amended and Restated JPA a fourth time to change the member agency identified for purposes of Government Code Section 6509 from the County of Placer to the City of Colfax; and
WHEREAS, consistent with Section 19 of the Amended and Restated JPA, Pioneer provided written notice of the proposed fourth amendment to each Voting Member at least 30 days prior to the date the Governing Board intended to vote on the amendment.
BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:
1. The above recitals are true and correct.
2. This Amendment No. 4 to the Amended and Restated Joint Exercise of Powers Agreement for Pioneer Community Energy provides that, for purposes of Government Code Section 6509, the powers of Pioneer Community Energy shall be exercised subject to the limitations on the manner of exercising such powers as are imposed on the City of Colfax, rather than the County of Placer.
3. The Governing Board hereby approves Amendment No. 4 to the Amended and Restated Joint Powers Agreement for Pioneer Community Energy, in the form attached hereto as Exhibit A. The Chair is hereby authorized and directed to execute Amendment No. 4 to the Amended and Restated JPA for Pioneer Community Energy in the name and on behalf of the Board.
3. This Resolution shall take effect immediately upon its adoption.
Exhibit A: Amendment No. 4 to the Amended and Restated JPA 13065-0001\2611497v1.doc
AMENDMENT NO. 4 TO THE AMENDED AND RESTATED JOINT EXERCISE OF
POWERS AGREEMENT FOR PIONEER COMMUNITY ENERGY (FORMERLY
SIERRA VALLEY ENERGY)
THIS AMENDMENT (hereafter "Amendment") amends the Amended and Restated Joint Exercise of Powers Agreement (hereafter "Amended and Restated JPA") with the effective date of February 22, 2017 which was by and between the COUNTY OF PLACER, the CITY OF AUBURN, the CITY OF COLFAX, the CITY OF LINCOLN, the TOWN OF LOOMIS, and the CITY OF ROCKLIN, and as executed pursuant to Amendment No. l to the Amended and Restated JPA by the COUNTY OF EL DORADO and the CITY OF PLACERVILLE, all public entities of the State of California, (the "Voting Members") as wells as those local agencies that became signatories to this Amendment as Associate Members, and related to the joint exercise of powers among all of the signatories hereto either as Voting Members or Associate Members (hereafter collectively referred to as the "Members"); and WHEREAS, on September 9, 2015, the COUNTY OF PLACER and the CITY OF COLFAX, entered into a Joint Exercise of Powers Agreement (hereafter "Original JPA") for the purpose of providing a financing conduit program expansion platform for the mPOWER Program; and
WHEREAS, the Amended and Restated JPA became effective on February 22, 2017 and authorized the Cities of Auburn, Lincoln, Rocklin, and the Town of Loomis to become Voting Members; and
WHEREAS, one of the primary purposes of the Amended and Restated JPA was to allow for the establishment of a Community Choice Aggregation Program within the jurisdiction of the Voting Members; and
WHEREAS, Resolution 2017-3 of the Sierra Valley Clean Energy Authority approved a name change from Sierra Valley Energy Authority to Pioneer Community Energy, as it is known today; and
WHEREAS, Amendment No. 1 to the Amended and Restated JPA, which was approved by the Governing Board on December 27, 2020 and became effective March 9, 2021, authorized the County of El Dorado and the City of Placerville to become Voting Members; and WHEREAS, Amendment No. 2 to the Amended and Restated JPA, which was approved by the Governing Board on January 21, 2021, eliminated the provision allowing for a weighted vote based on calculated voting shares and related references to a weighted vote; and WHEREAS, Amendment No. 3 to the Amended and Restated JPA, which was approved by the Governing Board on April 15, 2021, removed the requirement that the Placer County Treasurer and Placer County Auditor-Controller serve as the Treasurer and Auditor-Controller of Pioneer, and allowed the Governing Board to appoint the Treasurer and Auditor in compliance with Government Code Section 6500 et seq.; and
-2- 13065-0001\2611497v1.doc
WHEREAS, the Governing Board desires to amend the Amended and Restated JPA a fourth time to provide that, for purposes of Government Code Section 6509, the powers of Pioneer Community Energy shall be exercised subject to the restrictions the manner of exercising such powers as are imposed on the City of Colfax, rather than the County of Placer.
NOW THEREFORE, IT IS MUTUALLY AGREED THAT THE FOLLOWING CHANGES
AND ADDITIONS ARE HEREBY MADE IN THE AMENDED AND RESTATED JOINT POWERS AGREEMENT:
1. The final sentence of the first paragraph under Section 4 (Powers) shall be amended to read:
“As required by Government Code Section 6509, the power of the Authority is subject to the restrictions upon the manner of exercising power possessed by the City of Colfax.”
2. Except as specifically amended above, all other provisions of the Amended and Restated JPA shall remain in full force and effect.
IN WITNESS WHEREOF, the Governing Board of Pioneer Community Energy has approved this Amendment No. 4 to the Amended and Restated Joint Powers Agreement for Pioneer Community Energy.
EXECUTED ON: ___________________ Approved as to form: ________________ By: _______________________________
Chair, Pioneer Community Energy
Governing Board
ATTEST:
__________________________________
Secretary, Pioneer Community Energy
Governing Board
Staff Report – Item 6
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 6: California Arrearage Payment Program (CAPP) Update Date: 1/20/2022
RECOMMENDATION
Receive an update on the California Arrearage Payment Program (CAPP).
BACKGROUND
California established CAPP in the 2021-22 State Budget and was created to offer financial assistance for California energy utility customers to help reduce past due energy bill balances accrued during the COVID-19 pandemic. CAPP funding targets delinquent bills that were generated from early March 2020 through June 15, 2021. Almost $695 million is available to Investor-Owned Utilities (IOU) and Community Choice Aggregators (CCA) customers and the State invited all IOU’s and CCA’s to both participate in the program and help advise the State in the administration of the program. Because CAPP is not anticipated to fully relieve all eligible debt, the program established relief funding by prioritizing customer groups as follows:
1. At Risk of Disconnection – active residential customers with past-due balances of 60 days or more and at risk of disconnection, under normal circumstances, due to nonpayment of balances incurred during the COVID-19 pandemic bill relief period.
2. Past-due – active residential customers with past-due balances of 60 days or more incurred during the COVID-19 pandemic bill relief period.
3. Inactive account – inactive residential customers with past-due balance of 60 day or more incurred during the COVID-19 pandemic bill relief period.
4. Commercial – commercial customers with past-due balances of 60 days or more incurred during the COVID-19 pandemic bill relief period.
Because California suspended disconnections during the CAPP period and instead required utilities to automatically enroll delinquent customers in payment plans, priority group 1 does not have any customers or accounts. CAPP also provides certain customer protections, including:
1. No disconnection of customers during CAPP application review period.
2. 90-day protection from disconnection after CAPP benefit applied.
3. Notice of Available Payment Plans transmitted to customers with a remaining balance after applying a CAPP benefit.
4. Waive late fees and accrued interest for customers that receive a CAPP benefit but maintain a balance and enter a repayment plan.
Pioneer is participating in the CAPP program and since July has been working with the State, CalCCA, PG&E and Calpine to compile the needed and required data that would release funding to eligible Pioneer customers. The final application and data were submitted in December and the State will be releasing funds during January 2022. PG&E will also be processing credits for Pioneer customers and is anticipated to be applied during February 2022.
fJONEER
COMMUNITY ENERGY
Agenda Item: 6 Agenda Date: 1/20/2022
ANALYSIS & DISCUSSION
Pioneer’s summary of CAPP application data was:
Amount Number of Accounts
Priority Group 1 ---- -------
Priority Group 2 $1,626,334 4,548
Priority Group 3 $ 422,525 1,445
Priority Group 4 $ 243,255 131
The CAPP funding to Pioneer is expected to be $1,396,552. Per statute the bill credits are applied in a ‘waterfall’ method where funding first goes to priority group 1, then 2, and so on. Bill relief will be applied proportionately to all customers in that priority group. Outstanding amounts may change based on payment activity, but at the current amounts, priority group 2 customers should receive relief of 85% of their arrearage for the Covid-19 pandemic relief period.
STRATEGIC PLAN
Strategic Priority 5: Financial Stability & Strategic Growth Pioneer operates in a manner that ensures financial stability and delivers customer value.
FISCAL IMPACT
4,548 Pioneer customers will receive bill relief of almost $1.4million for certain delinquent amounts generated during the COVID-19 pandemic. The relief funding comes from the CAPP program and will reduce Pioneer’s outstanding accounts receivable by the same amount.
ATTACHMENTS
None
Staff Report – Item 7
To: The Governing Board
From: Alexia Retallack, Program Specialist II
Item 7: Time-of-Use Implementation Update
Date: 1/20/2022
RECOMMENDATION
Receive a report on PG&E’s implementation of the Time-of-Use transition in Pioneer Community Energy’s (Pioneer) service area.
BACKGROUND
In 2013, the Legislature authorized the California Public Utility Commission (CPUC) to initiate development of a default Time-of-Use (TOU) Transition Program for all residential customers, subject to certain conditions [PUC Code 754(c)(1)]. The intent of the TOU program is to shift energy consumption from costly peak period of 4 pm to 9 pm period, to other times in the day, when solar power is more plentiful.
On August 5, 2019, the Pioneer Board decided not to participate in the automatic enrollment of customers onto Time-of-Use. At that time, more than 70% of the affected customers would experience bill increases. The Pioneer Board’s decision to not participate in automatic enrollment also applies to customers in El Dorado County and Placerville.
The Pioneer Board implemented a Bill Protection Program for customers who voluntarily enroll on the Time-of-Use (4 pm to 9 pm) rate plan also known as TOUC. On October 21, 2021, the Pioneer Board extended the bill protection program providing a year of bill protection with the last day to enroll being April 30, 2022.
ANALYSIS & DISCUSSION
Pioneer’s service area, which is a combination of “hot” climate zones, changed enrollment dates, from October 2021 to April 2022. In addition, the CPUC allowed PG&E to delay the transition of highly impacted agricultural customers from March 2021 to March 2022. These customers do not have a choice in rate plan options. The transition is mandatory.
Pioneer customers slated for the residential TOUC transition began receiving 90-day notices in January 2022 in both Placer and El Dorado Counties. The 90-day notice has a business reply card and an individualized TOU rate plan savings analysis to help customers determine which rate plan to choose. Customers may also make the choice online or via the phone. Residential customers will also receive a 60-day and 30-day notice. fJONEER
COMMUNITY ENERGY
Agenda Item: 7 Agenda Date: 1/20/2022
STRATEGIC PLAN
Pioneer’s decision to not participate in the automatic enrollment of customers onto TOU rates supports its strategic goal of Quality in Service by ensuring stable and competitive rates.
FISCAL IMPACT
None.
ATTACHMENTS
None.
Staff Report – Item IV-B
To: The Governing Board
From: Don Eckert, Executive Director
Item IV-B: Executive Director Report
Date: 1/20/2022
REPORT
COVID-19 Update
During the holiday break, one employee tested positive for COVID-19. The employee has fully recovered and informed their supervisor in a timely manner to prevent any further infections at the office. The office will continue to require staff and visitors to follow COVID-19 protocol by wearing mask and practicing social distance until further notice. Staff is also in the process of updating COVID-19 protocols based on the latest information from the State and County.
Pioneer Staffing Update
There are three positions posted with interviews expected in February. The positions are:
• Power Resources Manager
• Power Contracts Manager
• Key Accounts Manager
Public Safety Power Shutoff (“PSPS”) Events
There are no PSPS events to report.
Executive Director Agreements Executed
The following agreements have been executed by the Executive Director, consistent with the authority delegated by the Board:
1. Bryce Consulting, Inc., Staff Recruiting and other Human Resources support, 12/15/2021-12/31/2022, not-to-exceed $40,000
2. Keyes & Fox LLP, Joint Representation Agreement with other Community Choice Aggregators (“CCA”), 12/14/2021 – completion of 2019 Energy Resource Recovery Account (Phase II) Compliance proceedings, not-to-exceed joint-CCA of $76,500 of which Pioneer’s portion is $8,500 or 1/9th of the value
Expansion Update
1. City of Grass Valley – Staff will be presenting in late January and again in early February at the City Council meetings.
2. Nevada County – Staff will be presenting on January 20th at the Board of Supervisors Retreat.
3. South Lake Tahoe – Staff met with consultants commissioned by the city regarding forming a CCA or joining another CCA. There is interest on both sides to explore but to begin service in Liberty Utilities territory includes many challenges. Staff will apprise the Board of further developments.
4. Yuba County – Staff reached out to Yuba County Water Agency and awaiting response.
5. City of Stockton – Staff updated the consultants commissioned by City of Stockton of our rates direction and awaiting response.
fJONEER
COMMUNITY ENERGY
Agenda Item: IV-B Agenda Date: 1/20/2022
PG&E Rates Update
Impacts to Current Bills
Effective January 1st, PG&E increased the transmission and distribution (“T&D”) rates on all tariffs. The T&D increase on the standard residential rate (E1) is 12.6%. In addition, the gas portion of the PG&E bill has increased due to an increase in natural gas prices this winter being double compared to last winter. PG&E passes the cost of natural gas directly to its customers. This impact will be seen in February’s bills. As a reminder, Pioneer does not compete with the T&D or gas portion of the PG&E bill nor influences those portions of the bill.
PG&E Generation and Power Charge Indifference Adjustment (“PCIA”) Update Staff has not received the final rates from PG&E as of the writing of this report. The delay on final rates is due to the CPUC considering the recovery of costs over an 18 month to 2-year period as opposed to a 12-month amortization to partially relieve rate pressure. Staff expects a decision by the CPUC by the end of January and rate schedules released in February.
Medical Baseline Power Charge Indifference Adjustment (“PCIA”) Change A change in PG&E policy regarding application of the PCIA impacting Medical Baseline customers became effective January 1st. In 2022, Medical Baseline customers will pay 25% of the applicable PCIA fee and ramping up to 100% by 2025.
Medical Baseline customers will still pay less with Pioneer than staying with PG&E, but this change will impact their monthly utility bill. Pioneer currently has approximately 12,000 Medical Baseline customers.
California Public Utilities Commission (“CPUC”) Leadership Update On December 31, 2021, former Senior Advisor to Governor Newsom for Energy, Alice Reynolds, replaced outgoing CPUC President Marybel Batjer.
On December 9, 2021, CPUC Commissioner Marth Guzman-Aceves left the Commission to accept an appointment as head of the Environmental Protection Agency, Region 9, which includes California. Her replacement has yet to be named.
Executive Director Power Supply Contracts Executed
The following agreements have been executed by the Executive Director, consistent with the authority delegated by the Board:
Presentations and Relevant Meetings attended by the Executive Director
1. Participated n CalCCA Weekly/Monthly Board meetings
2. Participated in CCA overview meeting with City of Grass Valley officials
3. Presented at City of Placerville’s Council meeting
ATTACHMENTS
1. Agenda Planning Document
2. Monthly Legislative and Regulatory Update
3. Monthly Communications and Public Outreach Update
Counterparty Name
Execution
Date Type Product Start Date End Date Notional Value
Calpine Energy Services, L.P. 12/15/2021 Sell Resource Adequacy - System 10/1/2022 10/31/2022 $300,000 City of San Jose 12/10/2021 Buy Renewable Energy - PCC1 12/10/2021 12/31/2021 $455,000 San Diego Community Power 12/13/2021 Sell Resource Adequacy - Flex 10/1/2022 10/31/2022 $135,000 San Jacinto Power 12/7/2021 Buy Pioneer North System Flexible 2/1/2022 2/28/2022 $15,000 The Energy Authority 12/20/2021 Buy Renewable Energy - PCC2 1/1/2022 12/31/2022 $617,500 Wellhead Power Exchange, LLC 12/13/2021 Sell Resource Adequacy - Flex 4/1/2022 4/30/2022 $133,722 Agenda Planning Document – Pioneer Community Energy Updated 1/14/2022 C:\Users\TeresaWillock\Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates This is a planning document which remains fluid pending staff communication Assigned items are listed with the Report Writer’s name as they will be initiating the report
JPA GOVERNING
BOARD
JANUARY 20, 2022
3:00 PM
(Post Agenda: January 14)
FEBRUARY 17, 2022
3:00 PM
(Post Agenda: February 11)
MARCH 17, 2022
3:00 PM
(Post Agenda: March 11)
IN THE FUTURE
General Function I annual Selection of Officers (Action – Eckert)
Approve Agenda
Approve Agenda Approve Agenda
Consent Approve meeting minutes
December 16, 2021 (Action - Eckert)
Teresa
Approve meeting minutes
January 20, 2022 (Action - Eckert)
Teresa
Approve meeting minutes
February 17, 2022 (Action - Eckert)
Teresa
Quarterly Update re: Strategic Plan objectives
APR – JUL – OCT – JAN
DETERMINATION for Pioneer AB
361 Remote Meeting Continuation
Findings (Action – GC)
MONTHLY – reaffirm Pioneer AB
361 Remote Meeting Continuation
Findings (Action – GC)
MONTHLY – reaffirm Pioneer AB 361
Remote Meeting Continuation Findings
(Action – GC)
MONTHLY – reaffirm Pioneer AB 361 Remote
Meeting Continuation Findings (Action – GC)
Receive Draft Financials: YTD 2022
(Maher)
Receive Draft Financials: YTD 2022
(Maher)
Receive Draft Financials: YTD 2022
(Maher)
IT Policy (Action - Koehn) GSO Diversity Report (Action) AMI Audit (Action – Koehn) mPOWER report (after bond is funded) Adopt Resolution approving
Agency-wide Retention Schedule
(Eckert-Action) Teresa
Regular Financial Audit (Discussion – Koehn)
Pisenti & Brinker
Recapture Opt-Outs (Discussion –
Riffey)
Legislative Policy Platform 2022
(Discussion – Kang)
Presentation by Biomass Producer, Bayview
(Director Hidahl)
JSR Amendment (Action – Riffey) Quarterly Update re: Strategic Plan objectives (Discussion – Eckert)
Mid-Year Budget (Action – Koehn) Expansion 2023 Update (Discussion – Kang) Audit & Finance Committee – add
Member (Action – Eckert)
Expansion Update (Discussion –
Eckert)
Power PrePay
Adopt Resolution approving
Amendment No. 4 to JPA re:
Limitation of Powers statement
(Action – Koehn)
State of the Utility presentation
(Discussion – Eckert)
California Arrearage Payment
Program Update (Discussion – Koehn)
PG&E TOU enrollment in April
(Discussion – Riffey) Alexia
General Function II Executive Director’s Report Executive Director’s Report Executive Director’s Report Informational Items:
Glossary of Terms
Informational Items:
Glossary of Terms
Informational Items:
Glossary of Terms
Closed Session/
Other
:J :J :J
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I I
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January 20, 2022 - Pioneer Community Energy Leg and Reg Update Pioneer Community Energy Legislative and Regulatory Update January 20, 2022
Zachary Boehme, Legislative and Regulatory Analyst
Legislative Affairs
California Public Utilities Commission (CPUC) Commissioner Departures and Replacements On December 31, 2021 former Senior Advisor to Governor Newsom for Energy, Alice Reynolds, replaced outgoing CPUC President Marybel Batjer. Additionally, on December 9, 2021, CPUC Commissioner Martha Guzman-Aceves left the Commission to accept an appointment from President Biden as the new head of the Environmental Protection Agency, Region 9, which covers California, Arizona, Nevada, Hawaii, Pacific island territories, and 148 tribal nations. Guzman-Aceves’s departure leaves a vacancy at the Commission which has yet to be filled.
California Legislature Update
The California Legislature reconvened on January 3, 2022 to begin the final year of the two-year legislative session. On January 1, 2022, all bills signed by the Governor and bills not signed or vetoed in 2021 became law.
As 2022 is the final year of a two-year session, there remains much unfinished business from 2021. All two-year bills carrying over from 2021 must pass through their House of Origin by January 31, 2022 to remain active legislative vehicles. New bills and bill amendments are beginning to trickle down through the Legislature. On January 10, 2022, Governor Newsom submitted the January Budget. Pioneer staff continues to monitor new priority bills and bill amendments of importance. As the 2022 legislative landscape becomes clearer, Pioneer staff will begin to engage with our Legislative Representatives to keep them apprised of our priorities this session.
Pioneer Legislative Update
Pioneer staff has begun engagement with CalCCA, individual CCAs, and other stakeholders in developing legislative and policy strategies for the 2022 session. Pioneer’s efforts are focused on the issues of bioenergy and biomass, grid resiliency/reliability, Public Safety Power Shutoff (PSPS) and wildfire mitigation, microgrid development, addressing Power Charge Indifference Adjustment (PCIA) volatility, transportation electrification funding, and preparing to avoid and oppose potentially threatening bills. As the 2022 legislative landscape unfolds, Pioneer staff will continue to update the Board and may reach out for efforts to either support or oppose specific bill measures.
10NEER
COMMUNITY ENERGY
January 20, 2022 - Pioneer Community Energy Leg and Reg Update Regulatory Proceedings
Below is a summary table of the key issues followed by further detail on activities since our last Board Meeting on a few ongoing priority Pioneer regulatory Proceedings and matters. More updates will follow at future Board meetings as regulatory Proceedings and matters evolve.
Proceeding Issue Pioneer Position
R.17-06-026 Power Charge Indifference
Adjustment (PCIA)
Reduce the PCIA and rate volatility
for CCA customers; increase data
transparency from the IOUs
R.21-10-002; D.21-07-014 RA; RA Reform Track Refine the current RA Program construct; reduce volatility of RA
prices; increase RA procurement
availability and grid reliability
R.18-12-005 Utility De-energization/PSPS Reduce impacts of PSPS events; increase coordination and
communications with IOUs to
ensure public safety during de-energization; limit PSPS impact on CCA load scheduling
A.20-02-009; A.21-03-008; A.20-
07-002
PG&E 2020 Energy Resource
Recovery Account (ERRA)
Compliance Application; 2021
ERRA Compliance Application;
2022 ERRA Forecast Application
Reduce the ERRA impact on the
PCIA; increase data transparency
from the IOUs
• Disconnections Rulemaking:
o The CPUC, on October 30, 2020, issued a Scoping Memo and Schedule on the Percentage of Income Payment Plan (PIPP), a second arrearages forgiveness Program, to address surfacing issues regarding cost collection and other disputed issues. A PIPP Pilot Program Straw Proposal was issued on June 17, 2021, with comments filed on July 9, 2021 and Replies on July 16, 2021.
Issues addressed in Joint CCA comments: support for the Straw Proposal as IOUs administer the Program while allowing CCA participation and cost recovery through the Public Purpose Program Charge (PPPC), Program procedures, customer eligibility, and regular communications with the IOUs on the Program. A Proposed Decision (PD) was issued on September 2, 2021 authorizing the PIPP Pilot Program inclusive of CCAs, with cost recovery coming through the PPPC. CalCCA filed Comments on September 22, 2021 in support, with some refinements, and filed Replies on September 27, 2021. The Final Decision was voted out at the October 7, 2021 CPUC Business meeting. SCE and PG&E filed a Joint Petition for Modification of the Decision on November 30, 2021. Pioneer had until November 8, 2021 to notify PG&E and the Proceeding’s January 20, 2022 - Pioneer Community Energy Leg and Reg Update service list of its intention to participate in the Pilot Program. Notification of Pioneer’s participation in the Pilot Program has been delivered. Pilot enrollment will begin spring 2022, and the Pilot Program will end 48 months post enrollment. A November 10, 2021 Email Ruling was issued directing smaller and multi-jurisdictional utility parties to file comments on potential PIPP Program, disconnections, safety, and cost recovery issues. Opening Comments on these Phase 1-A issues were due on December 13, 2021, and Replies are due January 14, 2022.
CalCCA is not filing either. IOUs began PIPP Implementation Working Group Meetings on December 6, 2021; another Implementation Working Group Meeting was held on January 10, 2022; additional Implementation Working Group Meetings are scheduled for January 24, 2022 and February 4, 2022. A meeting between PG&E and CCAs was held on December 17, 2021 to discuss PIPP issues. On December 22, 2021, Joint IOUs began a study to establish Medical Baseline customer eligibility under the Program.
• Resource Adequacy:
o Track 3B.2: a Revised PD and a Redlined Agenda Decision were issued on July 12, 2021; the Proposed Decision was adopted at the July 15, 2021 Commission Voting Meeting; the Decision continued to support the Revised PD but allows more room for SCE/CalCCA proposal to be incorporated into PG&E’s Slice of Day proposal through five workshops. Workshops were ongoing through the end of the year on several different topics related to the implementation of the Slice of Day proposals. A Workshop Report is anticipated in February 2022. A CalCCA tiger team convened to address issues being considered at the Workshops. The Workshop process is intended to lead to significant changes to the RA Program starting in 2024. Through the Workshop process, additional RA reform proposals have emerged from stakeholders.
CalCCA recently conducted a Study Session for regulatory and procurement staff to review the different Slice of Day proposals that are on the table; CalCCA, guided by individual CCAs, will be filing Comments on different proposals in the coming weeks; another Study Session will be held for the CalCCA Board on December 13, 2022. These proposals to refine the existing short-and long-term RA Program are critically important considering recent grid reliability issues, such as the rolling power outages of August 2020.
o Track 3B.2, addressing larger structural changes, has been renamed to "Reform Track". In 3.B RA Reform Track, a new annual Order Instituting Rulemaking (OIR) for RA compliance year 2023 was voted out at the CPUC October 7, 2021 Business Meeting; the new OIR establishes a Reform Track and an Implementation Track; CalCCA filed Comments on November 1, 2021 and filed Replies on November 10, 2021. A Prehearing Conference was held on November 16, 2021.
A Proposed Decision is expected summer 2022.
o On October 29, 2021, PG&E filed an Advice Letter (AL) describing their annual Central Procurement Entity (CPE) Compliance Report. Joint CCAs filed protest to the AL on November 22, 2021; on December 1, 2021, PG&E filed a Reply to the Joint CCAs’ protest. A CPE workshop was conducted on December 14, 2021 to discuss proposals to modify the CPE structure.
January 20, 2022 - Pioneer Community Energy Leg and Reg Update • PCIA:
o This Proceeding seeks to improve the methodology used in the ERRA Proceeding to determine the PCIA.
o Phase 1 of this Proceeding concluded in the fall of 2018 leaving the status quo PCIA in place maintaining the current index for brown power and revising inputs for the benchmarks used to calculate the PCIA for RPS resources and RA.
o Phase 2 of the Proceeding created three Working Groups to formulate processes to address additional PCIA proposals.
Working Group 1 (Benchmark Issues) sought to address outstanding benchmark issues and the benchmark true-up. A Final Decision was issued in the fall of 2019 and a second was issued in March 2020. On August 31, 2020, the IOUs filed ALs regarding the IOUs’ joint proposal of customer bill presentation of the PCIA. On October 19, 2021, PG&E filed a request for extension to comply with the requirement to display a PCIA line item on bundled customers’ bills; the CPUC granted an extension until October 1, 2023. A Proposed Decision is pending
Working Group 2 (Prepayment) seeks to resolve issues surrounding PCIA prepayment options, should a CCA choose to do so. A Ruling is pending. Working Group 3 (Portfolio Optimization) seeks to resolve issues on portfolio optimization and resource allocation. A Proposed Decision on Working Group 3 matters was issued on April 5, 2021. The Decision was unfavorable and did not address Working Group 3 recommendations. CalCCA submitted comments on the Decision on April 26, 2021 focusing on addressing the Working Group 3 recommendations that the PD disregarded or pushed to a later date. Reply comments were filed on May 3, 2021.
A Final Decision was issued on May 20, 2021. On August 23, 2021, IOUs submitted ALs proposing forecasting and methods for voluntary allocation of attributes associated with resources covered by the PCIA. Protests to IOU ALs regarding Working Group 3 methodology for determining PCIA eligible RPS and RA in IOUs’ portfolios were filed on September 13 and Replies on September 22, 2021. A Ruling is pending. o A CPUC email Ruling was issued on September 17, 2021 seeking Comments on ERRA related PCIA issues; CalCCA filed Comments on October 1, 2021; Replies were filed on October 8, 2021. o A CPUC ALJ Ruling was issued on November 15, 2021 requesting comments on three additional questions relating to PCIA forecasting data access; CalCCA filed Comments on December 9, 2021, and Replies were filed on January 6, 2022. On December 17, 2021 a Proposed Decision was issued resolving Phase 2 issues related to the ERRA Proceedings. CalCCA filed Comments on January 6, 2022; Replies were filed on January 11, 2022. • Deenergization/PSPS:
o The CPUC held IOU Public Briefings from August 2 through August 3, 2021 on Utility Readiness for 2021 PSPS events. The three IOUs filed a Joint Working Group Report on September 29, 2021 to share all lessons learned and best practices, and to provide required data in compliance with previous CPUC Rulings. The CPUC issued a Decision on September 29, 2021 January 20, 2022 - Pioneer Community Energy Leg and Reg Update against PG&E for its handling of the 2019 PSPS events; significant penalties were issued and are to be paid by shareholders and will also be recovered through customer bill credits for those affected. On October 5, 2021, PG&E issued a Bi-Weekly Report on corrective actions related to PSPS events, and a Report on engagement with Fire Agencies and Public Safety Partners.
o On October 5, 2021, PG&E filed a Post-Event PSPS Report for the September 20, 2021 PSPS event. This event did not affect Pioneer territory or customers. Another Post Event Report was issued on October 26, 2021 for the October 14-October 16, 2021 PSPS events. Neither the September 20, 2021 nor the October 14-October 16, 2021 PSPS events affected Pioneer customers.
o CPUC President Batjer sent a letter to PG&E regarding PG&E's Fast Trip Program which deenergizes lines to prevent utility-caused wildfires. Fast Trips have turned off the power to thousands of customers in northern California since the Program began in July 2021, including many in El Dorado County; these outages are related to PSPS as a measure to prevent wildfires caused by PG&E infrastructure, however, are not accountable under the PSPS CPUC established rules; no advanced warning is given and no communication takes place; power can be out for hours or days and presents inconvenience, confusion, and dangers to those who rely on electricity for medical reasons. Pioneer recently sent a letter to President Batjer regarding Fast Trip issues. The letter supports the comments in Batjer’s letter to PG&E seeking to address problems with the Fast Trip Program and requests additional information from PG&E on Fast Trip incidents. BBSW is looking to send a data request to PG&E regarding the Fast Trip Program in the Wildfire Mitigation Rulemaking Proceeding to get a complete picture of the scope and frequency of these outages in Pioneer territory. After early rains this season PG&E is recalibrating Fast Trip settings to lessen the frequency of shutoffs ongoing in Pioneer territory since July 2021. An Access and Functional Needs (AFN) Status Conference was scheduled for December 10, 2021
• PG&E ERRA Compliance and ERRA Forecast:
o The ERRA Proceeding acts as a review of an IOU’s prior year portfolio management and accounting and seeks to identify errors and discrepancies between PG&E’s revenue requirements vis-à-vis collected revenues through the IOU’s General Rate Case which ultimately affects CCA rates through the PCIA.
o In the PG&E Compliance Review of PABA and ERRA Entries 2019 Proceeding, Phase 2, a Pre-Hearing Conference was held on August 24, 2021. Phase 2 seeks to address PSPS cost recovery methodology in the ERRA. On October 26, 2021, an Energy Division Workshop was held on IOU PSPS methodology as related to ERRA. On November 11, 2021, IOUs provided Testimony on Phase 2 Issues. On November 12, 2021 an ALJ email ruling was issued providing guidance on Joint CCA Request for Clarification on alternative methodologies for calculating a utility’s unrealized volumetric sales and revenue resulting from PSPS events. On December 2, 2021, Joint CCAs filed a response to the Ruling. Pioneer and Joint CCAs will continue participation in Phase 2 of the Proceeding with Keyes and Fox and NewGen to address 2019 and future PSPS cost recovery methodology in the ERRA.
January 20, 2022 - Pioneer Community Energy Leg and Reg Update o On March 1, 2021, PG&E submitted their application for Compliance Review of its 2020 PABA and ERRA entries. Joint CCAs filed protest to the application on April 19, 2021. On September 13, 2021, PG&E requested to cancel hearings as they had resolved disputed facts with Joint CCAs. Evidentiary Hearings were shortened to one day, September 16, 2021, per September 2, 2021 email Ruling. A Settlement Conference was held on September 24, 2021. Opening Briefs were due on October 19, 2021, and Reply Briefs were due on November 9, 2021. A Proposed Decision is expected Q1 2022. A Joint Settlement Agreement was reached on October 15, 2021 among Joint CCAs, the Public Advocates Office, and PG&E resolving all disputed issues in PG&E’s 2020 ERRA Application. The Joint CCAs won on every outstanding contested issue with PG&E in this year’s Proceeding.
o PG&E submitted their 2022 ERRA Forecast on June 1, 2021. On August 31, 2021, Joint CCAs filed a Motion to Compel to resolve discovery dispute with PG&E over access to last year’s working papers which are key to Joint CCA’s testimony. A CPUC ALJ granted the Joint CCA Motion to Compel discovery on October 5, 2021, deeming the 2021 workpapers as integral to the calculation of the year-end PABA balance used to set 2022 PCIA rate. PG&E filed their annual November Forecast Update on November 8, 2021; Joint CCAs filed Comments on the November Update on November 11, 2021. The outlook on the 2022 PCIA looks very favorable with CCA rates going down and bundled rates going up. This was very positive news for Pioneer and CCAs. However, new rates that were to go into effect on January 1, 2022 have now been delayed until March 1, 2021 by a November 24, 2021 ALJ Ruling. The effect of this delay is that current PG&E rates and the 2021 PCIA will continue for an additional two months.
The continued under collection of ERRA and overcollection of PABA should, however, reduce the PCIA in 2023. Joint CCAs, CalCCA, PG&E, and DACC are arguing for a 12-month amortization period, while other stakeholders are supporting an 18 or 24-month amortization. More importantly, those supporting a 12-month amortization are looking for a timely, March 1, 2022, implementation of rates to prevent rate volatility for both bundled and unbundled customers. A PD is anticipated on January 14, 2022, with Reply Comments due on January, 24, 2022, and a January 27, 2022 Decision. Further updates will be provided as March 1, 2022 approaches.
• 2021 Emergency Reliability OIR:
o On October 29, 2021, a Proposed Decision was issued directing IOUs to take action to ensure reliability during extreme weather in summer 2022 and 2023. Comments were due on November 10, 2021, and Replies were due on November 16, 2021. The CPUC previously conducted an analysis of the need for new resources and found that a range between 2,000 to 3,000 MW of new supply- and demand-side resources will help address grid reliability concerns in the most extreme circumstances in 2022 and 2023. A Revised Proposed Decision was voted out at the December 2, 2021 Commission Voting Meeting.
o This PD adopts several supply and demand-side requirements to ensure there is adequate electric power in the event of extreme weather during times of greatest need in summers 2022 and 2023. The PD directs the IOUs to procure a total of between 2,000 and 3,000 MW of supply-side resources and expands the procurement role of the Central Procurement Entities January 20, 2022 - Pioneer Community Energy Leg and Reg Update (CPEs) but does not impose penalties for new procurement if reasonable efforts are demonstrated to meet the procurement targets. The PD also expands the Emergency Load Reduction Program (ELRP) which increases incentives for customers to reduce electrical usage during times when the grid is vulnerable. The proposal also expands existing authorization to procure supply-side resources including, for example, storage, imports, and gas plant efficiencies which can count toward procurement targets. CalCCA’s Comments on the Proposed Decision argued that procurement should be limited to 2,000 MW and to define “reasonable” attempts IOUs must make to meet emergency procurement obligations. • Net Billing (Formerly NEM 3.0):
o This Proceeding proposes to create a successor Program to NEM 2.0 to address some of the identified issues with the existing Program. On September 15, 2021, a coalition of community groups and the IOUs submitted a Joint Letter to the CPUC requesting to change, reduce, or eliminate existing NEM cost shifts. On October 13, 2021, a Joint Letter was submitted by San Diego Community Power and San Jose Community Energy indicating support for a NEM 3.0 tariff that continues the sustainable growth of the rooftop solar industry. A PD was issued on December 13, 2021 revising the NEM tariff and sub-tariffs. The objective here was to increase equity and eliminate cost shifts onto lower income customers who are subsidizing residential solar owners to some degree. Residential solar customers can still sell back power to the grid but at a significantly lower rate; they will also have to pay a grid charge based on kW usage ($40-$50/month). These changes will only apply to new solar customers and will be phased in over 4 years. Existing residential solar owners will not be subject to the changes until they have owned their system for 15 years. Joint CCAs filed Opening Comments on the PD on January 7, 2022; Replies are due January 14, 2022.
1/14/2022
1 Customer Engagement Update
January 2022 Board Meeting
Types of Engagement
2 Getting to know our customers: • Phone Calls & Emails • In Person Customer Site Visits
• Event Attendance & Sponsorship
• Community Presentations
• Key External Stakeholder Meetings
• Social Media
• Paid Media
• Earned Media
1 2
1/14/2022
2 Direct Customer Engagement
3 In Person Site Visits
• El Dorado School District
• Four Seasons HOA
Phone Calls/Emails
• 4,800 customer calls (call
center)
• 90% satisfied with customer
service
• 260 emails (call center)
• 51 team calls
• 14 NEM analysis
• Numerous customer bill
comparison
• Multiple “Opt Out” customers
turned to a “wait and see”
status
Community Presentations
• Eskaton Village, Placerville
• Online Webinar
Key External Stakeholders
4 • Regional Economic Development
Stakeholders Call
• Joint Economic Development &
Government Affairs Placer
County Meeting
• El Dorado County Joint Chamber
Event
• Auburn Chamber Event
3 4
1/14/2022
3 Social Media
5 Website
• 14,900 Site Visits
• 26,150 new users since June 2021
Facebook
• 603 Followers
• 112% increase since June 2021
• 6 Items Posted
• 273,500 Impressions
• 450 Clicks
LinkedIn
• 155 Followers
• 26% increase since June 2021
• 6 Items Posted
• 816 Impressions
• 37 Comments/Shares
Next Door
• Launched Business Page
Other Media
6 Earned Media
• 3 – Total # of Stories
• 159,500 - Total Audience
• $1,500 - Total estimated value
Paid Media
• Facebook ads and
‘boosting’ resulting in
increased social media
results
5 6
1/14/2022
4 Key Metrics
7 Green100
• 127 Total Participants
• 3 Opt Ups
• 3 Opt Downs
Customer Counts
• 87.8% Retention
• 1,380 New Customers
• 2 Returning Customers
7 Page | 1
Pioneer Community Energy
Glossary of Terms
CAISO – California Independent System Operator - a non-profit independent system operator that oversees the operation of the California bulk electric power system, transmission lines and electricity market generated and transmitted by its members (~80% of California’s electric flow). Its stated mission is to “operate the grid reliably and efficiently, provide fair and open transmission access, promote environmental stewardship and facilitate effective markets and promote infrastructure development. CAISO is regulated by FERC and governed by a five-member governing board appointed by the governor.
CALCCA – California Community Choice Association – Association made up of Community Choice Aggregation (CCA) groups which represents the interests of California’s community choice electricity providers.
CARB – California Air Resources Board – The CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change in California.
CEC – California Energy Commission
CPUC – California Public Utility Commission
C&I – Commercial and Industrial – Business customers
CP – Compliance Period – Time period to become RPS compliant, set by the CPUC (California Public Utilities Commission)
DA – Direct Access – An option that allows eligible customers to purchase their electricity directly from third party providers known as Electric Service Providers (ESP).
DA Cap – the maximum amount of electric usage that may be allocated to Direct Access customers in California, or more specifically, within an Investor-Owned Utility service territory.
DA Lottery – a random drawing by which DA waitlist customers become eligible to enroll in DA service under the currently-applicable Direct Access Cap.
DA Waitlist – customers that have officially registered their interest in becoming a DA customer but are not yet able to enroll in service because of DA cap limitations.
DAC – Disadvantaged Community
Page | 2
DASR – Direct Access Service Request – Request submitted by C&I to become direct access eligible.
Demand - The rate at which electric energy is delivered to or by a system or part of a system, generally expressed in kilowatts (kW), megawatts (MW), or gigawatts (GW), at a given instant or averaged over any designated interval of time. Demand should not be confused with Load or Energy.
DER – Distributed Energy Resource – A small-scale physical or virtual asset (e.g. EV charger, smart thermostat, behind-the-meter solar/storage, energy efficiency) that operates locally and is connected to a larger power grid at the distribution level.
Distribution - The delivery of electricity to the retail customer’s home or business through low voltage distribution lines.
DLAP – Default Load Aggregation Point – In the CAISO’s electricity optimization model, DLAP is the node at which all bids for demand should be submitted and settled. Pioneer settles its CAISO load at the PG&E DLAP as Pioneer is in the PG&E transmission access charge area.
DR – Demand Response - An opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.
DWR – Department of Water Resources – DWR manages California’s water resources, systems, and infrastructure in a responsible, sustainable way.
ELCC – Effective Load Carrying Capacity – The additional load met by an incremental generator while maintaining the same level of system reliability. For solar and wind resources the ELCC is the amount of capacity which can be counted for Resource Adequacy purposes.
EPIC – Electric Program Investment Charge – The EPIC program was created by the CPUC to support investments in clean energy technologies that provide benefits to the electricity ratepayers of PG&E, San Diego Gas & Electric Company (SDG&E), and Southern California Edison Company (SCE)
ERRA – Energy Resource Recovery Account – ERRA proceedings are used to determine fuel and purchased power costs which can be recovered in rates. The utilities do not earn a rate of return on these costs, and only recover actual costs. The costs are forecast for the year ahead.
If the actual costs are lower than forecast, then the utility gives money back, and vice versa.
ESP – Energy Service Provider - An energy entity that provides service to a retail or end-use customer.
EV – Electric Vehicle
Page | 3
GHG – Greenhouse gas - water vapor, carbon dioxide, tropospheric ozone, nitrous oxide, methane, and chlorofluorocarbons (CFCs). A gas that causes the atmosphere to trap heat radiating from the earth. The most common GHG is Carbon Dioxide, though Methane and others have this effect as well.
GRC – General Rate Case – Proceedings used to address the costs of operating and maintaining the utility system and the allocation of those costs among customer classes. For California’s three large IOUs, the GRCs are parsed into two phases. Phase I of a GRC determines the total amount the utility is authorized to collect, while Phase II determines the share of the cost each customer class is responsible and the rate schedules for each class. Each large electric utility files a GRC application every three years for review by the Public Advocates Office and interested parties and approval by the CPUC.
GWh – Gigawatt-hour - The unit of energy equal to that expended in one hour at a rate of one billion watts. One GWh equals 1,000 megawatt-hours.
IEP – Independent Energy Producers – California’s oldest and leading nonprofit trade association, representing the interest of developers and operators of independent energy facilities and independent power marketers.
IOU – Investor Owned Utility – A private electricity and natural gas provider.
IRP – Integrated Resource Plan – A plan which outlines an electric utility’s resource needs in order to meet expected electricity demand long-term.
kW – Kilowatt – Measure of power where power (watts) = voltage (volts) x amperage (amps) and 1 kW = 1000 watts
kWh – Kilowatt-hour – This is a measure of consumption. It is the amount of electricity that is used over some period of time, typically a one-month period for billing purposes. Customers are charged a rate per kWh of electricity used.
LCFS – Low Carbon Fuel Standard – A CARB program designed to encourage the use of cleaner low-carbon fuels in California, encourage the production of those fuels, and therefore, reduce greenhouse gas emissions.
LCR – Local (RA) Capacity Requirements – The amount of Resource Adequacy capacity required to be demonstrated in a specific location or zone.
LMP – Locational Marginal Price – Each generator unit and load pocket is assigned a node in the CAISO optimization model. The model will assign a LMP to the node in both the day- ahead and real time market as it balances the system using the least cost. The LMP is comprised of three components: the marginal cost of energy, congestion and losses. The LMP is used to financially settle transactions in the CAISO.
Load - An end use device or customer that receives power from an energy delivery system.
Load should not be confused with Demand, which is the measure of power that a load receives or requires. See Demand.
SE – Load-serving Entity – Entities that have been granted authority by state, local law or regulation to serve their own load directly through wholesale energy purchases and have chosen to exercise that authority.
NEM – Net Energy Metering – A program in which solar customers receive credit for excess electricity generated by solar panels.
NRDC – Natural Resources Defense Council
OIR – Order Instituting Rulemaking - A procedural document that is issued by the CPUC to start a formal proceeding. A draft OIR is issued for comment by interested parties and made final by vote of the five Commissioners of the CPUC.
MW – Megawatt – measure of power. A megawatt equals 1,000 kilowatts or 1 million watts.
MWH – Megawatt-hour – measure of energy
NP-15 – North Path 15 – NP-15 is a CAISO pricing zone usually used to approximate wholesale electricity prices in northern California in PG&E’s service territory.
PCC1 – RPS Portfolio Content Category 1 – Bundled renewables where the energy and REC are dynamically scheduled into a California Balancing Authority (CBA) such as the CAISO. Also known as “in-state” renewables.
PCC2 – RPS Portfolio Content Category 2 – Bundled renewables where the energy and REC are from out-of-state and not dynamically scheduled to a CBA.
PCC3 – RPS Portfolio Content Category 3 – Unbundled REC PCIA or “exit fee” - Power Charge Indifference Adjustment (PCIA) is an “exit fee” based on stranded costs of utility generation set by the California Public Utilities Commission. It is calculated annually and assessed to customers of CCAs and paid to the IOU that lost those customers as a result of the formation of a CCA.
PCL – Power Content Label – A user-friendly way of displaying information to California consumers about the energy resources used to generate the electricity they sell, as required by AB 162 (Statue of 2009) and Senate Bill 1305 (Statutes of 1997).
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PD – Proposed Decision – A procedural document in a CPUC Rulemaking process that is formally commented on by Parties to the proceeding. A PD is a precursor to a final Decision voted on by the five Commissioners of the CPUC.
Pnode – Pricing Node – In the CAISO optimization model, it is a point where a physical injection or withdrawal of energy is modeled and for which a LMP is calculated.
PPA – Power Purchase Agreement – A contract used to purchase the energy, capacity and attributes from a renewable resource project.
RA – Resource Adequacy - Under its Resource Adequacy (RA) program, the California Public Utilities Commission (CPUC) requires load-serving entities—both independently owned utilities and electric service providers—to demonstrate in both monthly and annual filings that they have purchased capacity commitments of no less than 115% of their peak loads.
RE – Renewable Energy - Energy from a source that is not depleted when used, such as wind or solar power.
REC - Renewable Energy Certificate - A REC is the property right to the environmental benefits associated with generating renewable electricity. For instance, homeowners who generate solar electricity are credited with 1 solar REC for every MWh of electricity they produce.
Utilities obligated to fulfill an RPS requirement can purchase these RECs on the open market.
RPS - Renewable Portfolio Standard - Law that requires CA utilities and other load serving entities (including CCAs) to provide an escalating percentage of CA qualified renewable power (culminating at 33% by 2020) in their annual energy portfolio.
SCE – Southern California Edison
SDG&E – San Diego Gas & Electric
SGIP – Self-Generation Incentive Program – A program which provides incentives to support existing, new, and emerging distributed energy resources (storage, wind turbines, waste heat to power technologies, etc.)
TCR EPS Protocol – The Climate Registry Electric Power Sector Protocol – Online tools and resources provided by The Climate Registry to assist organizations to measure, report, and reduce carbon emissions.
Time-of-Use (TOU) Rates — The pricing of delivered electricity based on the estimated cost of electricity during a particular time-block. Time-of-use rates are usually divided into three or four time-blocks per 24-hour period (on-peak, mid-peak, off-peak and sometimes super off-peak) and by seasons of the year (summer and winter). Real time pricing differs from TOU rates Page | 5
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in that it is based on actual (as opposed to forecasted) prices that may fluctuate many times a day and are weather sensitive, rather than varying with a fixed schedule.
TURN – The Utility Reform Network - A ratepayer advocacy group charged with ensuring that California IOUs implement just and reasonable rates.
Unbundled RECs - Renewable energy certificates that verify a purchase of a MWH unit of renewable power where the actual power and the certificate are “unbundled” and sold to different buyers.
VPP – Virtual Power Plant – A cloud-based network that leverages an aggregation of distributed energy resources (DERs) to shift energy demand or provide services to the grid.
For example, thousands of EV chargers could charge at a slower speed and hundreds of home batteries could discharge to the grid during a demand peak to significantly reduce the procurement of traditional supply resources.