Pioneer Community Energy Board of Directors
May 19, 2022

Governing Board and Alternates
Chair: Alice Dowdin Calvillo, City of Auburn
Vice Chair: Jeff Duncan, Town of Loomis
Wes Heathcock, City of Colfax
John Hidahl, County of El Dorado
Jim Holmes, County of Placer
Greg Janda, City of Rocklin
Suzanne Jones, County of Placer
Dan Karleskint, City of Lincoln
Dennis Thomas, 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, Michael Saragosa

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.

Pursuant to AB 361 regarding public meetings held during the COVID-19 emergency, Board members may attend this Pioneer Governing Board Meeting via teleconference. In order to protect public health and the safety of our Placer and El Dorado County residents, public access will be entirely by remote audio/visual participation, and 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.

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:
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.

Board of Directors Agenda
May 19, 2022
Pioneer Community Energy Offices
2510 Warren Drive, Suite B, Rocklin, CA 95677
3:00 PM Regular Session
I. GENERAL ADMINISTRATIVE FUNCTION – PART I
A. CALL TO ORDER

1. Roll Call
B. AGENDA REVIEW
C. 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 April 21, 2022 regular meeting. (ACTION - ECKERT) b) ADMINISTRATION
1) Determine pursuant to Government Code Section 54953(e)(1) that, as a result of the COVID-19 state of emergency, conducting in-person public meetings 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 Section 54953(e), with an option for in-person attendance of up to five Directors. (ACTION - ECKERT) c) FINANCE & ADMINISTRATION
Receive Quarterly Financial Reports through March 31, 2022. (ACTION - KOEHN) d) FINANCE & ADMINISTRATION
Adopt a resolution approving the Asset Disposal Policy. (ACTION - KOEHN) e) FINANCE & ADMINISTRATION
Adopt a resolution approving and authorizing the Executive Director to execute a renewal agreement with Maher Accountancy for accounting services from June 1, 2022 through June 30, 2023 for an amount not to exceed $215,250. (ACTION - KOEHN)

REGULAR SESSION
III. REGULAR AGENDA
2) ADMINISTRATION & FINANCE
Long-Term Power Prepay Transaction (DISCUSSION - KOEHN) Recommendation: Receive an overview of the long-term power prepay transaction. 3) ADMINISTRATION & FINANCE
Proposed Fiscal Year 2022-23 Budget (DISCUSSION - KOEHN) Recommendation: Receive presentation on the Proposed Fiscal Year 2022-23 Budget and provide direction as appropriate. The recommended budget will be brought to the Board for approval at the June 16, 2022 Board meeting.
4) ADMINISTRATION & FINANCE
Resolution Approving Line of Credit and Letter(s) of Credit with Umpqua Bank (ACTION - KOEHN)
Recommendation: Adopt a resolution 1) Approve and authorize the Executive Director to execute a Line of Credit and Letter(s) of Credit with Umpqua Bank, provided that the term does not extend beyond 5 years, interest costs does not exceed Prime + 1%, and the annual Line of Credit fee does not exceed 1%, and the Letter(s) of Credit Fee does not exceed 3% per annum on the required credit amount; and 2) Authorizes the Executive Director to execute all documents deemed necessary to consummate the Line of Credit and Letter(s) of Credit with Umpqua Bank.
5) MARKETING & COMMUNICATIONS
Time-of-Use Implementation Update (DISCUSSION - RIFFEY) Recommendation: Receive an update on PG&E’s Time-of-Use transition in Pioneer Community Energy’s service area.
6) MARKETING & COMMUNICATIONS
Enhanced Powerline Safety Shutoff Program for 2022 Report (DISCUSSION - RIFFEY) Recommendation: Receive report on PG&E’s Enhanced Powerline Safety Shutoff Program (EPSS) in Pioneer’s service area for 2022.

IV. GENERAL ADMINISTRATIVE FUNCTION – PART II
A. BOARD MEMBER COMMUNICATIONS
B. EXECUTIVE DIRECTOR COMMUNICATIONS
C. ITEMS FOR INFORMATION

1. Glossary of Terms
D. ADJOURNMENT
Next Regular Meeting Scheduled for:

June 16, 2022 at 3:00 pm
Pioneer Community Energy Offices
2510 Warren Drive, Suite B, Rocklin, CA 95677
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 May 19, 2022 regular meeting of the Pioneer Community Energy Governing Board was posted and available for public review on May 13, 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].

PIONEER COMMUNITY ENERGY

GOVERNING BOARD
April 21, 2022
Minutes
Entry No. 1
Heard General Administration Functions, Part I.

Call to Order
Pioneer Community Energy Governing Board met in open session at 3:04 PM on April 21, 2022. 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://us06web.zoom.us/j/89967227073.

Roll Call
P A Title Name Agency
x Chair Alice Dowdin Calvillo City of Auburn
x Vice Chair Jeff Duncan Town of Loomis
x Director Wes Heathcock City of Colfax
x Director John Hidahl County of El Dorado
x Director Jim Holmes County of Placer
x Director Greg Janda City of Rocklin
x Director Suzanne Jones County of Placer
x Director Dan Karleskint City of Lincoln
x Director Dennis Thomas City of Placerville
Director Holmes informed the Board that he would be excusing himself at 3:50 PM due to a scheduling conflict.

Chair Dowdin Calvillo presided over the meeting.

Agenda Review
Reviewed the meeting agenda for April 21, 2022 and made no amendments.

Public Comment
There were no comments from members of the public on items not listed on this agenda.

Entry No. 2
Acted on the Consent Agenda as follows:

Approved minutes of the March 17, 2022 regular meeting.

Determined pursuant to Government Code Section 54953(e)(1) that, as a result of the COVID-19 state of emergency, conducting in-person public meetings 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 (Pioneer), including all of the Board-appointed Committees. Directed that the meetings of the Board of Directors and all other legislative bodies of Pioneer be conducted by teleconferencing, pursuant to Government Code Section 54953(e), with an option for in-person attendance of up to five Directors.

Received Draft Financial Reports for February 2022.

MOTION: Holmes/Hidahl. Vote: 9:0:0.

ROLL CALL: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Holmes, Janda, Jones, Karleskint, Thomas.

No/Abstain: None.

Absent: None.

ITEM 1a
Entry No. 3
Received a high-level report on the Cybersecurity Assessment and Automated Metering Infrastructure (AMI) Audit from Hutchinson and Bloodgood, LLP.

Chair Dowdin Calvillo expressed appreciation for receiving the audit results, commented that cybersecurity is such an important part of a successful organization, and that she was pleased that Pioneer received such a high rating.

Staff confirmed that Pioneer conducts a cybersecurity and informational technology assessment every year, and that the California Public Utilities Commission requires the automated metering infrastructure audit every three years.

Entry No. 4
Received a presentation from JSR Strategies introducing the new Pioneer website to the Board.

Director Hidahl requested clarification regarding the Time-of-Use calculator and if it can really verify savings.

Director Riffey confirmed that the calculator is not connected to the individual actual energy usage database but is based upon the actual cost billed and depends on the user to input actual cost from monthly bill which it then calculates the average savings over a 12-month period at that cost. As use in July may be higher than use in February, a user must add up the actual costs billed over 12 months then divide by 12 to find the actual cost number to enter into the calculator to produce the actual annual savings.

Director Hidahl emphasized that the monthly bill is confusing and his concern for possibly losing customers thinking that PG&E is cheaper due to not being able to easily see Pioneer savings.

Executive Director Eckert commented that along with the calculator there is a section on “Understanding Your Bill” related to actual savings which combined would better address these concerns. So, Pioneer will go back and make sure that these features tie together which should improve and best inform the customer.

Director Riffey confirmed that content for Understanding Your Bill, includes similar features for Solar, Commercial, and Commercial Solar bills. As of now, anyone can access the calculator to input their current month billing cost to find the Pioneer/PG&E comparison savings.

Director Janda inquired if it would be possible to add the percentage of cost savings to the calculator which should be somewhat consistent over the year.

Director Riffey confirmed that the percentage of savings is incorporated in another page but will check into adding it to the calculator function as well.

Director Duncan suggested using bold type for the disclaimer associated with the PCIA vintage rate so customers utilizing the calculator would not miss it then feel mislead in the calculated savings as compared to their actual bill.

Director Karleskint requested that the website content be viewed and reviewed by the Board prior to its release to the public.

Executive Director Eckert responded with appreciation, informed the Board that the implementation process will include testing by Pioneer staff, and welcomed the Executive Board to review as well.

Director Thomas mentioned the vernacular “vintage” as it is a well-known internal term, but most customers may not be so familiar with the term; and, how related items are shifted from one side to the other side of the page and not consistent in placement, such as for comparison items of Pioneer and PG&E.

Governing Board Minutes
April 21, 2022

Director Heathcock inquired if there would be value of adding a click from the calculator page to the “Understanding My Bill” page, so it could be more easily accessed.

Director Riffey responded that this feature is throughout the website pages and will go back to make sure one is close to the calculator.

Chair Dowdin Calvillo expressed appreciation to the design team for optimizing the great things about Pioneer with a focus on opting in; looks forward to the launch; and requested that all Members of the Board be included in the beta testing of the website pages prior to it going live.

Director Holmes excused himself from the meeting at 4:00 PM.

Entry No. 5
Adopted Resolution 2022-8 approving Amendment No. 7 to the By-Laws for Pioneer Community Energy related to Alternative Members’ Participation on Committees.

MOTION: Heathcock/Karleskint. Vote: 8:0:1.

ROLL CALL: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Janda, Jones, Karleskint, Thomas.

No/Abstain: None.

Absent: Holmes.

Director Hidahl nominated Director Thomas to the existing vacancy on the Audit & Finance Committee through January 2023 effective immediately.

Vote: 8:0:1.

ROLL CALL: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Janda, Jones, Karleskint, Thomas.

No/Abstain: None.

Absent: Holmes.

Affirmed Committee Members through January 2023.

MOTION: Hidahl/Karleskint. Vote: 8:0:1.

ROLL CALL: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Janda, Jones, Karleskint, Thomas.

No/Abstain: None.

Absent: Holmes.

Entry No. 6
Received and approved the revised 2022 Pioneer Legislative Policy and Platform that includes the following updates: added AB 1944 (Lee Garcia), AB 2449 (Rubio) to the “watch” list; added AB 2878 (Aguiar Curry), and SB 1109 (Caballero) to “support” positions, and updated SB 881 (Min) to “oppose unless amended” from “support if amended.”
Acting General Counsel Khalsa confirmed that the two bills related to the Brown Act, AB 1944 and AB 2449 have a deadline of moving to Committee by May 6, 2022.

MOTION: Thomas/Duncan. Vote: 8:0:1.

ROLL CALL: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Janda, Jones, Karleskint, Thomas.

No/Abstain: None.

Absent: Holmes.

Governing Board Minutes
April 21, 2022

Entry No. 8
Heard General Administration Functions, Part II.

A. Board Member Communications
Director Hidahl reported that he along with Directors Dowdin Calvillo and Duncan attended the April 18, 2022 meeting of the ad hoc Energy Procurement Review Committee. Pioneer staff and support including Executive Director, Chief Operating Officer, Finance Director, Commercial Counsel, General Counsel, and Technical Consultants also attended. The Committee 1) elected Director Hidahl to serve as Chair and Director Dowdin Calvillo to serve as Vice Chair of the ad hoc Energy Procurement Review Committee through January 2023 effective immediately; 2) reviewed, discussed, asked questions, and approved the Executive Director’s execution of a 20-year renewable energy and battery storage contract with NextEra that helps fulfill Pioneer’s ling-term Renewables Portfolio Standard and Mid-term Reliability requirements; and, 3) reviewed the status of the WPWMA biomass project.

B. Executive Director Communications
Executive Director Eckert introduced Pioneer’s new Key Accounts Manager, Paige Garcia, who brings a variety of communications and project management experience including serving as a consultant for SMUD, Roseville Electric, and MCE; and was part of the start-up team launching Silicon Valley Clean Energy. Paige has a bachelor’s degree in environmental studies from San Francisco State.

C. Informational Items
Received the Glossary of Terms.

D. Adjournment
The meeting adjourned at 4:30 PM
ATTEST:

Minutes approved as presented by a majority vote of
the Governing Board on May 19, 2022.

Teresa Willock, Board Secretary
Governing Board Minutes
April 21, 2022

Staff Report – Item 1b
To: The Governing Board
From: Inder Khalsa, 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: 5/19/2022

RECOMMENDATION
Determine pursuant to Government Code Section 54953(e)(1) that, as a result of the COVID-19 state of emergency, conducting in-person public meetings 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), with an option for in-person attendance of up to five Directors.

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 March 17, 2022, 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 state of emergency is still in effect and on March 17, 2022, the Board of Directors 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. At the March 17 meeting, the Directors provided direction to staff to facilitate meetings with up to five Directors in-person at the Pioneer office, with the remaining Directors and members of the public continuing to participate via video or teleconference.

COVID-19 spreads more easily indoors, and 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. As discussed during the March 17 Board of Directors meeting, before the rise of COVID-19 Pioneer held its public meetings at the Pioneer offices. The fJONEER

COMMUNITY ENERGY
Agenda Item: 1b Agenda Date: 5/19/2022

Pioneer facilities are not designed to ensure circulation of fresh or outdoor air and would not allow all Directors and attendees to remain six or more feet apart. The size and unique characteristics of the Pioneer facilities remains a factor for the health and safety risks associated with in-person meetings, including the increased mixing associated with bringing people together from across several communities; the need to enable those who are immunocompromised or unvaccinated, or who live with someone who is immunocompromised or unvaccinated, to be able to safely continue to participate in Pioneer meetings; and the challenge of achieving compliance with safety requirements and recommendations in the Pioneer facilities.

The adoption of the recommended determination does not require the Board to meet remotely. Rather, by determining that holding regular in-person meetings would present imminent risks to the health or safety of attendees, Pioneer may continue to hold public meetings by Zoom, including with the option for a subset of the Directors to attend in-person from the Pioneer offices. Within 30 days after making this determination, and each 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.

STRATEGIC PLAN
Strategic Policy 1: Local Engagement, Objective 1.5

FISCAL IMPACT
None

ATTACHMENTS
None

Staff Report – Item 1c
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1c: Receive Quarterly Financial Reports Through March 2022 Date: 5/19/2022

ACTION REQUESTED
Receive Quarterly Financial Reports through March 31, 2022.

BACKGROUND
The Year-To-Date (YTD) financial reports presented with this report are produced by Maher Accountancy for Board and management review. Although these reports are unaudited, they provide the most up-to-date financial data for Pioneer Community Energy. Placer County Treasurer’s Office is recording any activity for the mPOWER program in the County financial system and that information will be merged with Pioneer’s CCA program at a later date. For March 2022, 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.

ANALYSIS & DISCUSSION
The table below shows the year-to-date budget-to-actuals summary through the third quarter of FY 2021-22 ending March 2022.

FY 2021-22 FY 2021-22 Variance
$ in Thousands YTD Budget YTD Actuals (Under)/Over
Energy Revenue $83,764 $79,977 ($3,787)
Power Supply $73,502 $68,592 ($4,911)
Operating Margin $10,262 $11,385 $1,123
Operating Expense $6,370 $5,198 ($1,172)
Debt Service & Other $483 $460 ($23)
Contribution To/(From) Reserves $3,409 $5,728 $2,318
At the March 17, 2022 Board meeting, the Board approved adjustments to the FY 2021-22 CCA operating budget to include the impact of Pioneer’s rate adjustment and increased power costs. Due fJONEER

COMMUNITY ENERGY
Agenda Item: 1c Agenda Date: 5/19/2022

to the timing of customer billing, the full effect of the rate adjustment is only beginning to be reflected in the March actuals.

At nine months through the fiscal year, a favorable increase in expected YTD contribution to reserves of $2.3M results from both an unfavorable YTD decrease in expected energy revenue of $3.8M, but also a favorable YTD decrease power supply costs and operating expenses of $4.9M and $1.2M, respectively. While the YTD financials currently show favorable results, expected REC payments occurring in the balance of the year will increase actual power supply costs, in addition to the regular volatility in power supply costs expected throughout the fiscal year.

STRATEGIC PLAN
Strategic Priority 5: Financial Stability & Strategic Growth

FISCAL IMPACT
The YTD change in net position through nine months of the fiscal year is $6.1 million.

ATTACHMENTS

1. Quarterly Financial Reports through March 31, 2022
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 March 31, 2022, 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. Pioneer Community Energy’s annual audited financial statements 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 Pioneer Community Energy’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
May 5, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com CCA Fund
ASSETS
Current assets
Cash and cash equivalents 24,391,533 $
Accounts receivable, net of allowance 12,366,523
Accrued revenue 6,469,130
Other receivables 139,408
Prepaid expenses 22,292
Deposits 6,132,366
Total current assets 49,521,252

LIABILITIES
Current liabilities
Accrued cost of energy 8,830,050
Accounts payable 399,364
Other accrued liabilities 249,570
Interest payable 33,365
Note payable 544,731
Total current liabilities 10,057,080
Noncurrent liabilities
Note payable 9,519,317
Total noncurrent liabilities 9,519,317
Total liabilities 19,576,397

NET POSITION
Unrestricted net position 29,944,855
Total net position 29,944,855 $

PIONEER COMMUNITY ENERGY

STATEMENT OF NET POSITION
As of March 31, 2022

CCA FUND
See accountants' compilation report. 2
CCA Fund

OPERATING REVENUES
Electricity sales, net 77,424,404 $
Other income 182,813
Total operating revenues 77,607,217

OPERATING EXPENSES
Cost of electricity 66,039,330
Contract services 3,092,346
Staff compensation 1,692,172
General and administration 413,246
Total operating expenses 71,237,094
Operating income (loss) 6,370,123

NONOPERATING REVENUES (EXPENSES)
Investment gains (losses) 49,309
Interest and financing expense (300,106)
Nonoperating revenues (expenses), net (250,797)
CHANGE IN NET POSITION 6,119,326
Net position at beginning of period 23,825,530
Net position at end of period 29,944,856 $

PIONEER COMMUNITY ENERGY
Nine Months Ended March 31, 2022

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, a California Joint Powers Authority, which comprise the budgetary comparison schedule for the period ended March 31, 2022, 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 Pioneer Community Energy.

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.

Pioneer Community Energy’s annual audited financial statements 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 Pioneer Community Energy’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 Pioneer Community Energy because we performed certain accounting services that impaired our independence.

Maher Accountancy
San Rafael, CA
May 5, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 2021/22 YTD
Amended
Budget
2021/22 YTD
Actual
2021/22 YTD
Budget
Variance
(Under) Over
2021/22
YTD
Actual/
Budget %
2021/22
Amended
Budget
2021/22
Budget
Remaining

ENERGY REVENUES
Electricity Sales $ 81,925,315 $ 78,389,243 $ (3,536,072) 96% 125,940,000 $ $ 47,550,757 Less Uncollectible Accounts (887,853) (964,836) 109% (1,414,000) (76,983) (449,164) Congestion Revenue Rights 2,726,682 2,552,242 (174,440) 94% 3,250,000 697,758 Total Operating Revenues 83,764,144 79,976,649 (3,787,495) 127,776,000 47,799,351

ENERGY EXPENSES
Power Supply 68,591,572 73,502,123 (4,910,551) 93% 105,314,000 36,722,428 OPERATING MARGIN 11,385,077 10,262,021 1,123,056 22,462,000 11,076,923

OPERATING EXPENSES
Administration
Compensation 390,899 398,738 (7,839) 98% 531,651 140,752 Contract services 232,875 116,411 (116,464) 50% 310,500 194,089 Operating Expenses 490,619 349,410 (141,210) 71% 654,159 304,750 Total Administration expenses 1,122,233 856,719 (265,513) 1,496,310 639,591 Finance
Compensation 489,108 510,838 (21,730) 96% 681,117 192,009 Contract services 267,254 242,722 (24,531) 91% 356,338 113,616 Operating Expenses 161,218 61,975 (99,243) 38% 214,957 152,982 Total Finance expenses 939,309 793,805 (145,504) 1,252,412 458,607 Power Procurement
Compensation 335,021 348,317 (13,297) 96% 464,423 129,402 Contract services 942,202 900,561 (41,641) 96% 1,256,269 355,708 Operating Expenses 9,750 231 (9,519) 2% 13,000 12,769
Total Power Procurement expenses 1,235,812 1,300,269 (64,457) 1,733,692 497,880 Account Care
Compensation 152,383 186,479 (34,096) 82% 248,639 96,256 Contract services 1,107,600 924,693 (182,907) 83% 1,476,800 552,107 Operating Expenses 492,000 345,564 (146,436) 70% 656,000 310,436 Total Power Account Care expenses 1,786,079 1,422,639 (363,440) 2,381,439 958,800 Marketing & Communications
Compensation 172,632 252,800 (80,168) 68% 337,066 164,434 Contract services 258,705 194,646 (64,059) 75% 344,940 150,294 Operating Expenses 157,230 187,597 30,367 119% 209,640 22,043 Total Marketing expenses 668,735 554,874 (113,861) 891,646 336,772 Legislative & Regulatory
Compensation 146,653 212,354 (65,701) 69% 283,138 136,485 Contract services 276,180 181,373 (94,807) 66% 368,240 186,867 Operating Expenses 22,913 412 (22,501) 2% 30,550 30,138 Total Legislative expenses 511,446 328,437 (183,009) 681,928 353,491 Programs
Compensation 39,856 (34,376) 5,480 14% 53,141 47,661
Contract services - - - 0% - -
Operating Expenses 2,250 - (2,250) 0% 3,000 3,000
Total Programs expenses 42,106 5,480 (36,626) 56,141 50,661 Total Operating Expenses 6,370,176 5,197,766 (1,172,410) 8,493,568 3,295,802

NON-OPERATING REVENUES (EXPENSES)
Investment gains (losses) 50,000 49,309 (691) 99% 100,000 50,691 Miscellaneous income 180,000 182,813 102% 2,813 180,000 (2,813) Principal payments (405,000) (391,636) 97% 13,364 (540,000) (148,364) Interest and related expenses (307,502) (300,106) 98% 7,396 (410,000) (109,894) Nonoperating revenues (expenses), net (459,621) (482,502) 22,881 (670,000) (210,379) Total Expenses (Energy, Operating, Non-Operating) 80,354,801 74,248,959 (6,105,842) 114,477,568 40,228,609 Contribution to/(from) Reserves $ 3,409,343 $ 5,727,690 $ 2,318,347 $ 13,298,432 $ 7,570,742

BUDGETARY COMPARISON SCHEDULE
Nine Months Ended March 31, 2022

PIONEER COMMUNITY ENERGY

CCA FUND

Staff Report – Item 1d
To: The Governing Board
From: Steve Lund, Program Specialist II
Item 1d: Asset Disposal Policy
Date: 5/19/2022

RECOMMENDATION
Adopt a Resolution Approving Asset Disposal Policy

BACKGROUND
As Pioneer operations continue to grow it is essential that staff has the proper tools needed to efficiently manage operations. Through the development of effective policies, staff gains the tools needed. One area that requires further development are procedures for the disposal of aged equipment, such as office furniture and technology equipment.

ANALYSIS & DISCUSSION
As Pioneer’s equipment ages, it is necessary to replace these items with new technologies or equipment which assist in increasing staff efficiency. When these aged assets are at the end-of-life Pioneer needs guidelines to properly dispose of them. This policy provides the tools needed to identify items to be considered surplus.

Furthermore, it provides direction on the responsibilities of certain staff regarding equipment disposal. Finally, the proposed policy provides options for disposal which include sale, destruction, or donation, depending on the type of item.

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 Asset Disposal 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 May 19, 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 finance policies; and WHEREAS, it is in the interest of Pioneer Community Energy (“Pioneer”) to establish Asset Disposal policy to facilitate the disposal of surplus equipment; and WHEREAS, the objective of the Asset Disposal Policy is to provide staff with a standard for disposing of surplus equipment.

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 Asset Disposal 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: FP10 – Asset Disposal Policy
In the matter of: Adopt a Resolution
Approving Asset Disposal Policy
FP10
Category: Finance
Page | 1 Proposed: May 19, 2022

ASSET DISPOSAL POLICY
I. PURPOSE
To conduct business, it is necessary for Pioneer to purchase equipment, including but not limited to office furniture and, computer systems and storage devices. Over time Pioneer will need to replace the old equipment to accommodate new
technologies or to increase business process efficiencies. This policy is to establish a policy and a set of procedures for handling these assets.

II. SCOPE
This policy applies to all Pioneer assets.

III. DEFINITIONS
“Surplus Equipment” shall mean all equipment that have become unsuitable for Pioneer use, worn out, or obsolete.
“Donation” shall mean to contribute equipment to a public, not-for-profit, or charitable organization. “Eligible Organizations” shall mean public bodies, charitable, civic, or not-for-profit 501(c)(3) organizations.
“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
Surplus Equipment
Department heads are responsible for identifying and reporting equipment that is recommended to be labeled as surplus. The department head will draft a memo to the Director of Finance and Administration listing these items for consideration.

Equipment that has been recommended as surplus will have a value assigned by the Director of Finance and Administration. If the value of the individual item is $5,000 or less, the Executive f/ONEER

COMMUNITY ENERGY
FP10
Category: Finance
Page | 2 Proposed: May 19, 2022
Director can declare the item surplus. If the value of the individual item is above $5,000, Pioneer’s Governing Board can declare the item as surplus.

Once items are declared surplus, the Director of Finance and Administration is responsible for disposal of items. Disposal can include sale, destruction of items, or donating the items to an eligible organization. Sales procedures may include negotiated sales, acceptance of sealed bids, or public auction. Services of a paid auctioneer may be used, as appropriate.

Organizations eligible for donations must provide the following:
• Proof of 501(c)(3) status.
• Statement of benefit that the donated items provide the organization.
• Plan for receiving items.

Under no circumstances can surplus equipment be donated to a Pioneer employee, Board member, or persons directly affiliated with the operations of Pioneer.

Computer hard drives and other forms of electronic media must be disposed by the information technology (IT) department as described in this policy.

Computer hard drives and other forms of electronic media The transfer or disposition of data processing equipment, such as computers and related media, shall be controlled. Data can be present on any type of storage device, whether fixed or removable, that contains data and maintains the data after power is removed from the device. Due to the advances in computer forensics, simply deleting the data and formatting the disk will not prevent someone from restoring the data. However, sanitization of the storage media removes the information from the media in such a way that data recovery using common techniques or analysis is prevented.

All computer desktops, laptops, hard drives, and portable media f/ONEER

COMMUNITY ENERGY
FP10
Category: Finance
Page | 3 Proposed: May 19, 2022
must be given to the IT Department for proper disposal. This list of items is not exclusive and may be expanded at the discretion of the IT department.

The IT department shall ensure all that the following actions are taken in connection with the disposal of qualifying:
• The item has been labeled as surplus by the Director of Finance and Administration.
• All hard drives and other computer storage media shall be properly processed through an appropriate sanitization
process.
• After sanitization, all hard drives and other computer storage media shall be physically destroyed by an
organization with an R2 recycling or NAID AAA certification. • A certificate of destruction is obtained for all destroyed hard drives and other computer storage media
To best protect Pioneer’s company and customer data, under no circumstances can surplus computer hard drives and other forms of electronic media be donated.

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 1e
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1e: Adopt a Resolution Approving and Authorizing the Executive Director to Execute Renewal Agreement with Maher Accountancy for Accounting Services Date: 5/19/2022

RECOMMENDATION
Adopt a resolution approving and authorizing the Executive Director to execute a renewal agreement with Maher Accountancy for accounting services from June 1, 2022 through June 30, 2023 for an amount not to exceed $215,250.

BACKGROUND
Accurate financial reporting and strong internal controls are of high importance to both the Governing Board and Staff. On March 18, 2021, the Board authorized the Executive Director to execute an agreement with Maher Accountancy for Pioneer’s accounting and financial reporting needs from April 2021 to June 2022.

Maher Accountancy services maintains strong internal controls, has less fiscal impact than hiring in-house staff, and provides institutional knowledge based on years of experience with other Community Choice Aggregators (CCAs).

ANALYSIS & DISCUSSION
Maher Accountancy shall provide accounting services and financial operational assistance to Pioneer for a fixed monthly fee.

Standard Services include:

1. Maintenance of the General Ledger including reconciling customer data management reports of customer activity and accounts receivable and reconciliation of the agency’s financial institution for cash activity and balances.

2. Assist staff with the development of the operating budget.

3. Manage accounts payable by providing a cloud-based accounts payable document management system that enhances internal controls.

4. Manage compliance with fiscal provisions of vendor contracts including the verifying of time periods, rates, and financial limits before payment is released.

5. Monitor expenditures budget compliance and make timely suggestions and budget amendments when necessary.

6. Financial reporting including periodic and year-to-date accrual basis financial statements.

7. Present financial information to the Governing Board, as needed.

8. Assist in treasury function.

9. File various compliance reports for state and local agencies such as user taxes, energy surcharges and state controller reports (financial transaction and government compensation reports).

10. File annual information returns such as 1099’s/1096’s. fJONEER

COMMUNITY ENERGY
Agenda Item: 1e Agenda Date: 5/19/2022

Maher Accountancy shall also assist with coordination of an independent auditor for the annual audit and prepare annual financial statements, including notes and the Management Discussion & Analysis.

The scope of services does not include transitioning mPOWER from the County accounting system, although Maher will coordinate with the County of Placer for inclusion of mPOWER financials in the annual audit process.

New services to be added in the scope include online contract and budget tracking tools to improve staff’s ability to track spending and manage service contracts more efficiently.

Pioneer retains the right to terminate the contract at any time.

FISCAL IMPACT
The fiscal impact of this recommendation is $215,250 over a 13-month period beginning June 1, 2022.

ATTACHMENTS

1. Resolution Approving and Authorizing the Executive Director to Execute a Renewal Agreement with Maher Accountancy for Accounting Services.

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 May 19, 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, this Resolution Approving and Authorize the Executive Director to Execute an Agreement with Maher Accountancy for Accounting Services; and WHEREAS, competitive solicitation requirement is hereby dispensed and a sole source procurement with Maher Accountancy is justifiably in the best interest of Pioneer for the following reasons:
• Maher Accountancy has been in business for over 35 years providing audit, tax and accounting services.
• Maher Accountancy has experience auditing local governments and providing accounting and consulting services to various types of utilities. • Maher Accountancy has been providing services to CCA companies since 2010, including the first successfully formed CCA, Marin Clean Energy. Maher Accountancy continues to be engaged with Marin Clean Energy. • Maher Accountancy has a developed team of CPA’s, Data Analyst, and Accountants with CCA experience.
• Maher Accountancy provides services to 6 CCA’s that are very similar to Pioneer’s service offering and worked with each one prior and during each CCA’s phase 1 launches.
• In addition to those 6 CCA’s, other CCA’s throughout the State receive various Maher Accountancy consulting services.

In the matter of: A Resolution Approving and
Authorizing the Executive Director to
Execute an Agreement with Maher
Accountancy for Accounting Services
Resolution No. ___

2 • Maher Accountancy has extensive experience working with Pioneer’s service providers; Calpine Energy Solutions and ZGlobal which provide critical data services for revenues and cost of energy.
• Maher Accountancy transitioned Pioneer from County accounting services and have provided Pioneer with exceptional services.

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 and authorizes the Executive Director to Execute an Agreement with Maher Accountancy for Accounting services, in substantially the form attached, for accounting services from June 1, 2022 through June 30, 2022, for an amount not-to-exceed $215,250 with any minor clerical or clarifying changes proposed by the Executive Director and approved by General Counsel.

3. This Resolution shall take effect immediately upon its adoption.

Attachment: Professional Services Agreement with Maher Accountancy.

Administering Agency: Pioneer Community Energy
Contract No.

Contract Description: Accounting Services

1. 2.

3. 4.

CONSULTANT SERVICES AGREEMENT
THIS AGREEMENT is made at Rocklin, California, as of June 1, 2022, by and between Pioneer Community Energy, ("Pioneer"), and Maher Accountancy ("Consultant"), who agree as follows:

Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide the services described in Exhibit A. Consultant shall provide said services at the time, place, and in the manner specified in Exhibit A.

Payment. Pioneer shall pay Consultant for services rendered pursuant to this Agreement at the time and in the amount set forth in Exhibit B. The payment specified in Exhibit B shall be the only payment made to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all billings for said services to Pioneer in the manner specified therein, or, if no manner be specified, then according to the usual and customary procedures which Consultant uses for billing clients similar to Pioneer. The amount of the contract shall not exceed Two Hundred Fifteen Thousand Two Hundred Fifty Dollars ($215,250.00).

Facilities, Equipment and Other Materials, and Obligations of Pioneer. Unless otherwise specified in Exhibit C, Consultant shall, at its sole cost and expense, furnish all facilities, equipment, and other materials which may be required for furnishing services pursuant to this Agreement.

Exhibits. All exhibits referred to herein will be attached hereto and by this reference incorporated herein.

5. Time for Performance. Time is of the essence. Failure of Consultant to perform any services within the time limits set forth in Exhibit A shall constitute material breach of this contract.

6. Independent Consultant. At all times during the term of this Agreement, Consultant shall be an independent Consultant and shall not be an employee of Pioneer. Pioneer shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement. Pioneer shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement.

7. Licenses, Permits, Etc. Consultant represents and warrants to Pioneer that it has all licenses, permits, qualifications, and approvals of whatsoever nature, which are legally required for Consultant to practice its profession. Consultant represents and warrants to Pioneer that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, and approvals which are legally required for Consultant to practice its profession at the time the services are performed.

8. Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for the satisfactory performance of Consultant's obligations pursuant to this Agreement. Neither party shall be considered in default of this Agreement to the extent performance is prevented or delayed by any cause, present or future, which is beyond the reasonable control of the party.
- 1 -

9. Hold Harmless and Indemnification Agreement. At all times during the performance of this agreement, Consultant agrees to protect, defend, and indemnify Pioneer in accordance with the provisions contained in Exhibit D.

10. Insurance. Consultant shall file with Pioneer concurrently herewith a Certificate oflnsurance, in companies acceptable to Pioneer, with a Best's Rating of no less than A-: VII, for the coverage shown in Exhibit D. All costs of complying with these insurance requirements shall be included in Consultant's fee(s). These costs shall not be considered a "reimbursable" expense under any circumstances.

11. Consultant Not Agent. Except as Pioneer may specify in writing Consultant shall have no authority, express or implied, to act on behalf of Pioneer in any capacity whatsoever as an agent.

Consultant shall have no authority, express or implied pursuant to this Agreement to Bind Pioneer to any obligation whatsoever.

12. Assignment Prohibited. Consultant may assign its rights and obligations under this Agreement only upon the prior written approval of Pioneer, said approval to be in the sole discretion of Pioneer.

13. Personnel.

A. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that Pioneer, in its sole discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by Consultant to perform services pursuant to this Agreement, including those members of the Project Team as explained below, Consultant shall remove any such person immediately upon receiving notice from Pioneer of the desire of Pioneer for removal of such person or persons.

B. Notwithstanding the foregoing, if specific persons are designated as the "Project Team" in Exhibit A, Consultant agrees to perform the work under this agreement with those individuals identified. Reassignment or substitution of individuals or subcontractors named in the Project Team by Consultant without the prior written consent of Pioneer shall be grounds for cancellation of the agreement by Pioneer, and payment shall be made pursuant to Section 15 (Termination) of this Agreement only for that work performed by Project Team members.

14. Standard of Performance. Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession. All products of whatsoever nature which Consultant delivers to Pioneer pursuant to this Agreement shall be prepared in a substantial first class and workmanlike manner and conform to the standards or quality normally observed by a person practicing in Consultant's profession.

15. Termination.

A. Pioneer shall have the right to terminate this Agreement at any time by giving notice in writing of such termination to Consultant. In the event Pioneer shall give notice of termination, Consultant shall immediately cease rendering service upon receipt of such written notice, pursuant to this Agreement. In the event Pioneer shall terminate this Agreement:
1) Consultant shall deliver copies of all writings prepared by it pursuant to this Agreement. The term "writings" shall be construed to mean and include: handwriting, typewriting, printing, Photostatting, photographing, and every other means of recording - 2 -
upon any tangible thing any form of communication or representation, including letters, words, pictures, sounds, or symbols, or combinations thereof. 2) Pioneer shall have full ownership and control of all such writings delivered by Consultant pursuant to this Agreement.
3) Pioneer shall pay Consultant the reasonable value of services rendered by Consultant to the date of termination pursuant to this Agreement not to exceed the amount documented by Consultant and approved by Pioneer as work accomplished to date; provided, however, that in no event shall any payment hereunder exceed the amount of the agreement specified in Exhibit B, and further provided, however, Pioneer shall not in any manner be liable for lost profits which might have been made by Consultant had Consultant completed the services required by this Agreement. In this regard, Consultant shall furnish to Pioneer such financial information as in the judgment of Pioneer is necessary to determine the reasonable value of the services rendered by Consultant. The foregoing is cumulative and does not affect any right or remedy, which Pioneer may have in law or equity.

B. Consultant may terminate its services under this Agreement upon thirty- (30) working days' advance written notice to Pioneer.

16. Contract Term. The term of this Agreement shall commence on June 1, 2022, and shall terminate on June 30, 2023, unless terminated earlier as set forth herein.

17. Non-Discrimination. Consultant shall not discriminate in its employment practices because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, or sexual orientation in contravention of the California Fair Employment and Housing Act, Government Code section 12900 et~-

18. Records. Consultant shall maintain, at all times, complete detailed records with regard to work performed under this agreement in a form acceptable to Pioneer, and Pioneer shall have the right to inspect such records at any reasonable time. Notwithstanding any other terms of this agreement, no payments shall be made to Consultant until Pioneer is satisfied that work of such value has been rendered pursuant to this agreement. However, Pioneer shall not unreasonably withhold payment and, if a dispute exists, the withheld payment shall be proportional only to the item in dispute.

19. Ownership of Information. All professional and technical information developed under this Agreement and all work sheets, reports, and related data shall become the property of Pioneer, and Consultant agrees to deliver reproducible copies of such documents to Pioneer on completion of the services hereunder. Pioneer agrees to indemnify and hold Consultant harmless from any claim arising out of reuse of the information for other than this project.

20. Waiver. One or more waivers by one party of any major or minor breach or default of any provision, term, condition, or covenant of this Agreement shall not operate as a waiver of any subsequent breach or default by the other party.

21. Conflict of Interest. Consultant certifies that no official or employee of Pioneer, nor any business entity in which an official of Pioneer has an interest, has been employed or retained to solicit or aid in the procuring of this agreement. In addition, Consultant agrees that no such person will be employed in the performance of this agreement without immediately notifying Pioneer.

22. Entirety of Agreement. This Agreement contains the entire agreement of Pioneer and Consultant with respect to the subject matter hereof, and no other agreement, statement, or promise made by - 3 -
any party, or to any employee, officer or agent of any party, which is not contained in this Agreement, shall be binding or valid.

23. Alteration. No waiver, alteration, modification, or termination of this Agreement shall be valid unless made in writing and signed by all parties, except as expressly provided in Section 15, Termination.

24. Governing Law. This Agreement is executed and intended to be performed in the State of California, and the laws of that State shall govern its interpretation and effect. Any legal proceedings on this agreement shall be brought under the jurisdiction of the Superior Court of County of Placer, State of California, and Consultant hereby expressly waives those provisions in California Code of Civil Procedure §394 that may have allowed it to transfer venue to another jurisdiction.

25. Notification. Any notice or demand desired or required to be given hereunder shall be in writing and deemed given when personally delivered or deposited in the mail, postage prepaid, and addressed to the parties as follows:

PIONEER COMMUNITY ENERGY:

Pioneer Community Energy
Attn: Eric Acedo
2510 Warren Drive Suite B
Rocklin, CA 95677
[email protected]
Phone: 916-758-8943
CONSULTANT:

Maher Accountancy
Attn: Michael Maher
1101 Fifth Ave, Suite 200
San Rafael, CA 94901
[email protected]
Phone: (415) 526-3020
Any notice so delivered personally shall be deemed to be received on the date of delivery, and any notice mailed shall be deemed to be received five (5) days after the date on which it was mailed. - 4 -
Executed as of the day first above stated:

PIONEER COMMUNITY ENERGY
By:

Name: Don Eckert
Title: Executive Director
Approved as to Form -General Counsel:

By:

Name: Inder Khalsa
Title: General Counsel

MAHER ACCOUNTANCY
By:
by Michael Maher
13 11:51:40 PDT
Name: Michael Maher
Title: Vice President
Exhibits
A. Scope of Services
B. Payment for Services Rendered
C. Facilities, Equipment and Other Obligations of Pioneer D. Hold Harmless Agreement and Insurance Requirements
- 5 -

EXHIBIT A

SCOPE OF SERVICES
A. Monthly Financial Operational Assistance:

1. Maintain accounting system, accounts payable system and processes.

2. Maintain the general ledger with proper support and documentation, including:
a. Posting accrued revenue, cash receipts, accounts payable, cash disbursements, payroll, accrued expenses, aggregate customer billings, etc. b. Prepare or maintain the following monthly analysis regarding general ledger account balances:

1. Reconciliation to statements from Pioneer's financial institution for cash activity and balances;

11. Reconciliation of customer data manager reports of customer activity and accounts receivable aging to general ledger;
111. Computation of estimated user fees earned but not billed as of the end of the reporting period;
1v. Schedule of depreciation of capital assets;
v. Aged schedule of accounts payable;
vi. Schedules of details regarding all remaining balance sheet accounts.

3. Manage accounts payable: Maher utilizes a cloud-based accounts payable document management system to provide for documentation of management review, proper segregation of duties, and access to source data. Maher ensures that required authorization is documented and that account coding is correct. Pioneer's staff then authorizes the release of payment, providing an additional safeguard.

4. Assist with compliance of fiscal provisions of non-energy vendor contracts for services.

Before remitting vendor invoices for management approval, Maher verifies that each vendor invoice is compliant with contract provisions regarding time periods, rates, and financial limits.

5. Provide periodic and year-to-date financial statements in compliance with GAAP (without disclosures). The financial statements will be considered a compilation engagement in accordance with the Statements on Standards for Accounting and Review Services promulgated by the AICP A.

6. Provide monthly financial statements with comparison to budget. a. Provide timely budget amendments and insight suggestions.

7. Filing annual information returns, such as form 1099/1096's.

8. Prepare and file various compliance reports for state and local agencies such as user taxes, energy surcharges and state controller reports including financial transaction and government compensation in California.

9. Assist in treasury function and assist staff with development of the operating budget.

10. The responsibility of the accounting and reporting for all mPOWER activity rests with Pioneer Community Energy's treasurer and the County of Placer Treasurer Tax-Collector's Office. Maher Accountancy will incorporate data prepared by the treasurer in the annual financial statements.

B. Financial Statement Audit Support

1. Draft financial statements, notes, and MD&A letter

2. Prepare audit workpapers

3. Coordinate with Pioneer and auditor
C. Provide access to unified web portal for 1) professional services contract management and 2) budget management.

to Consultant Services Agreement

1. Maintain listing of open and recently closed contracts, documents, and basic metadata as available from accounting system or Bill.com

2. Track Actual spend against commitments and report on available balances.

3. Maintain comparison of department level budget to department level actual spend.

4. Maher will maintain the data, but ongoing accuracy will require cooperation from vendor/budget relationship managers

5. Pioneer will timely provide Maher with contracts and contract amendments

6. Pioneer will timely provide Maher with budget information

7. Pioneer will review Maher's input of the contract data into the portal

to Consultant Services Agreement

EXHIBITB

PAYMENT FOR SERVICES RENDERED
Maximum Limit & Fee Schedule
The total amount for services rendered as described in Exhibit "A" shall not exceed $212,500.

Maher Fee Summary
Task Fixed Monthly Fee Contract Maximum Notes
Monthly Financial $13 ,500 $175,500 Operations Support
Annual Financial Statement NIA $15,000 Payable upon audit Audit Report completion
Contract/Budget Portal $750 $9,750
Bill.com Reimbursement NIA $15,000
Not-to-Exceed Total NIA $215,250
Reimbursable Expenses
Administrative, overhead, secretarial time or overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. Pioneer user fees and Payment issuance costs charged by cloud-based accounts payable services will be borne by Pioneer and are included in the contract not-to-exceed total as listed above.

Invoices
Consultant shall submit monthly invoices, as applicable, to Pioneer. Invoices shall include an itemized list of work performed and/or services provided. Work performed by Consultant will be subject to final acceptance by Pioneer.

Submit all invoices to:

Pioneer Community Energy
Attn: Eric Acedo
F [email protected]. gov
2510 Warren Drive, Suite B
Rocklin, CA 95677
to Consultant Services Agreement

EXHIBIT C

FACILITIES, EQUIPMENT, AND OTHER

MATERIALS, AND OBLIGATIONS OF PIONEER
(Specify all equipment and facilities to be provided or made available by Pioneer, and any other Pioneer obligations.)

NOT APPLICABLE

to Consultant Services Agreement

EXHIBITD

HOLD HARMLESS AGREEMENT

AND INSURANCE REQUIREMENTS

1. HOLD HARMLESS AND INDEMNIFICATION AGREEMENT
The CONSULTANT hereby agrees to protect, defend, indemnify, and hold PIONEER free and harmless from any and all losses, claims, liens, demands, and causes of action of every kind and character including, but not limited to, the amounts of judgments, penalties, interest, court costs, legal fees, and all other expenses incurred by PIONEER arising in favor of any party, including claims, liens, debts, personal injuries, death, or damages to property (including employees or property of PIONEER) and without limitation by enumeration, all other claims or demands of every character occurring or in any way incident to, in connection with or arising directly or indirectly out of, the contract or agreement. CONSULTANT agrees to investigate, handle, respond to, provide defense for, and defend any such claims, demand, or suit at the sole expense of the CONSULTANT.

CONSULTANT also agrees to bear all other costs and expenses related thereto, even if the claim or claims alleged are groundless, false, or fraudulent. This provision is not intended to create any cause of action in favor of any third party against CONSULTANT or PIONEER or to enlarge in any way the CONSULT ANT'S liability but is intended solely to provide for indemnification of PIONEER from liability for damages or injuries to third persons or property arising from CONSULT ANT'S performance pursuant to this contract or agreement.

As used above, the term PIONEER means Pioneer or its officers, agents, employees, and volunteers.

2. INSURANCE:

CONSULTANT shall file with PIONEER concurrently herewith a Certificate of Insurance, m companies acceptable to PIONEER, with a Best's Rating of no less than A-:VII showing.

3. WORKER'S COMPENSATION AND EMPLOYERS LIABILITY INSURANCE:

Worker's Compensation Insurance shall be provided as required by any applicable law or regulation.

Employer's liability insurance shall be provided in amounts not less than one million dollars ($1,000,000) each accident for bodily injury by accident, one million dollars ($1,000,000) policy limit for bodily injury by disease, and one million dollars ($1,000,000) each employee for bodily injury by disease.

If there is an exposure of injury to CONSULTANT'S employees under the U.S. Longshoremen's and Harbor Worker's Compensation Act, the Jones Act, or under laws, regulations, or statutes applicable to maritime employees, coverage shall be included for such injuries or claims.

Each Worker's Compensation policy shall be endorsed with the following specific language:

Cancellation Notice - "This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy".

Waiver of Subrogation - The workers' compensation policy shall be endorsed to state that the workers' compensation carrier waives its right of subrogation against Pioneer, its officers, directors, officials,

to Consultant Services Agreement
employees, agents or volunteers, which might arise by reason of payment under such policy in connection with performance under this agreement by the CONSULT ANT.

CONSULTANT shall require all SUBCONTRACTORS to maintain adequate Workers' Compensation insurance. Certificates of Workers' Compensation shall be filed forthwith with Pioneer upon demand.

4. GENERAL LIABILITY INSURANCE:

A. Comprehensive General Liability or Commercial General Liability insurance covering all operations by or on behalf of CONSUL TANT, providing insurance for bodily injury liability and property damage liability for the limits ofliability indicated below and including coverage for:
(1) Contractual liability insuring the obligations assumed by CONSULT ANT in this Agreement.

B. One of the following forms is required:
( 1) Comprehensive General Liability;
(2) Commercial General Liability (Occurrence); or
(3) Commercial General Liability (Claims Made).

C. If CONSULTANT carries a Comprehensive General Liability policy, the limits of liability shall not be less than a Combined Single Limit for bodily injury, property damage, and Personal Injury Liability of:

One million dollars ($1,000,000) each occurrence
➔ Two million dollars ($2,000,000) aggregate
D. If CONSULTANT carries a Commercial General Liability (Occurrence) policy:
( 1) The limits of liability shall not be less than:

One million dollars ($1,000,000) each occurrence (combined single limit for bodily injury and property damage)
One million dollars ($1,000,000) for Products-Completed Operations ➔ Two million dollars ($2,000,000) General Aggregate
(2) If the policy does not have an endorsement providing that the General Aggregate Limit applies separately, or if defense costs are included in the aggregate limits, then the required aggregate limits shall be two million dollars ($2,000,000).

E. Special Claims Made Policy Form Provisions:

CONSULTANT shall not provide a Commercial General Liability (Claims Made) policy without the express prior written consent of PIONEER, which consent, if given, shall be subject to the following conditions:
(1) The limits of liability shall not be less than:

to Consultant Services Agreement
One million dollars ($1,000,000) each occurrence ( combined single limit for bodily injury and property damage)
One million dollars ($1,000,000) aggregate for Products Completed Operations ➔ Two million dollars ($2,000,000) General Aggregate
(2) The insurance coverage provided by CONSUL TANT shall contain language providing coverage up to one (1) year following the completion of the contract in order to provide insurance coverage for the hold harmless provisions herein if the policy is a claims-made policy.

Conformity of Coverages - If more than one policy is used to meet the required coverages, such as a separate umbrella policy, such policies shall be consistent with all other applicable policies used to meet these minimum requirements. For example, all policies shall be Occurrence Liability policies or all shall be Claims Made Liability policies, if approved by Pioneer as noted above. In no cases shall the types of polices be different.

5. ENDORSEMENTS:

Each Comprehensive or Commercial General Liability policy shall be endorsed with the following specific language:

A. "Pioneer Community Energy, its officers, agents, employees, and volunteers are to be covered as insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement."
B. "The insurance provided by the Consultant, including any excess liability or umbrella form coverage, is primary coverage to Pioneer Community Energy with respect to any insurance or self-insurance programs maintained by Pioneer Community Energy and no insurance held or owned by Pioneer Community Energy shall be called upon to contribute to a loss." C. "This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy."

6. AUTOMOBILE LIABILITY INSURANCE:

Automobile Liability insurance covering bodily injury and property damage in an amount no less than one million dollars ($1,000,000) combined single limit for each occurrence.

Covered vehicles shall include owned, non-owned, and hired automobiles/trucks.

7. PROFESSIONAL LIABILITY INSURANCE:

Professional liability insurance which includes coverage for the professional acts, errors and omissions of Consultant in the amount of at least $1,000,000.

8. PRIVACY AND CYBERSECURITY LIABILITY INSURANCE:

Privacy and cybersecurity liability (including costs arising from data destruction, hacking or intentional breaches, crisis management activity related to data breaches, and legal claims for security breach, privacy violations, and notification costs of at least $1,000,000 US per occurrence.

to Consultant Services Agreement

9. ADDITIONAL REQUIREMENTS:

Premium Payments - The insurance companies shall have no recourse against PIONEER and funding agencies, its officers and employees or any of them for payment of any premiums or assessments under any policy issued by a mutual insurance company.

Policy Deductibles - The CONSULTANT shall be responsible for all deductibles in all of the CONSULTANT's insurance policies. The maximum amount of allowable deductible for insurance coverage required herein shall be $25,000.

CONSULTANT's Obligations - CONSULTANT's indemnity and other obligations shall not be limited by the foregoing insurance requirements and shall survive the expiration of this agreement.

Verification of Coverage - CONSUL TANT shall furnish Pioneer with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by Pioneer before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONSUL TANT' s obligation to provide them. Pioneer reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Material Breach - Failure of the CONSULTANT to maintain the insurance required by this agreement, or to comply with any of the requirements of this section, shall constitute a material breach of the entire agreement.

to Consultant Services Agreement

Staff Report – Item 2
To: The Governing Board
From: Don Eckert, Executive Director
Item 2: Long-Term Power Prepay Transaction
Date: 5/19/2022

RECOMMENDATION
Receive an overview of the long-term power prepay transaction.

COMMITTEE RECOMENDATION
At the March 3, 2022 Audit & Finance Committee meeting, the committee receive a presentation from Michael Berwanger of PFM providing an introduction of the power prepay transaction. The committee unanimously supported staff to pursue the transaction with the next step being the issuance of a Request for Proposal (“RFP”).

At the May 11, 2022 Audit & Finance Committee, the committee received an update on progress to-date and overview of next steps and expected timeline.

BACKGROUND
An energy prepayment (“Prepay”) is a long-term financial transaction available to municipal utilities and tax-exempt entities such as Community Choice Aggregators (“CCA”) that enables a significant power procurement cost savings opportunity. Utilizing the municipal bond market, a tax-exempt Load Serving Entity (CCA, called “Prepay Buyer”) and a taxable financial counterparty (bank, called “Prepay Supplier”) enter into a 30-year agreement through which the Prepay Buyer assigns existing power supply contracts to the Prepay Supplier. The Prepay Supplier pays the contract price to the Power Purchase Agreement (“PPA”) provider, while the Prepay Buyer pays the Prepay Supplier at a discounted rate. The discounted rate is agreed upon in the prepay documents and is based in part on the spread between the taxable and tax-exempt bond interest rates. The market availability of this interest rate spread is critical to the savings opportunity available to the Prepay Buyer through a prepay.

Tax-exempt bonds are issued by a third-party conduit to raise funds for the prepay transaction, which flow to the Prepay Supplier. The Prepay Buyer performs a limited assignment of the PPA to the Prepay Supplier. The Prepay Buyer is required to continue to perform under the contract, while maintaining rights on the electricity and renewable attributes under the PPA. The Prepay Supplier utilizes the bond funds and provides a discount on the PPA to the Prepay Buyer based on the spread between the taxable and tax-exempt rates. The discount is estimated at 8-10% but is subject to change based on market conditions. The flow chart on the next page illustrates the basics of the transaction:
fJONEER

COMMUNITY ENERGY
Agenda Item: 2 Agenda Date: 5/19/2022

The total combined notional value of the assigned contracts flowing through the prepay over the 30 years is typically in the range of $300-$600MM; these contracts can be long-term renewables PPA’s or commodity supply contracts. While the contracts are assigned to the Prepay Supplier, the Prepay Buyer continues to ultimately take and pay for all the energy and attributes delivered through the contract; all other terms of the PPA remain unchanged. If the prepay transaction terminates early for any reason – either the Prepay Supplier or the Prepay Buyer fail to perform – the CCA forgoes future savings and the assigned PPA is put back completely to the CCA.

Two key features of the municipal bonds utilized in the prepay greatly reduce risk to the CCA.

1. The bonds are non-recourse to the CCA, meaning they are neither secured nor guaranteed by the CCA and the CCA will at no point be responsible for repaying the bonds

2. Prepays are off-balance sheet for the CCA as the bonds are issued by a third-party conduit Ultimately, prepays are employed to save ratepayers money while maintaining both (a) the economics for the PPA provider and (b) the terms of the energy supply contract. They have been utilized by municipal utilities for natural gas transactions in the US since the early 1990’s, with over 90 transactions completed nationwide ($50+ Billion) and approximately a dozen transactions completed in California ($5.7 Billion). The same tax law and similar transaction structure that enables the natural gas prepays enables the transaction for electricity, and specifically renewables contracts, creating an opportunity for CCA’s to provide renewable energy at a lower cost than the Investor-Owned Utility competition. In the past year, prepay transactions have been executed by MCE, Silicon Valley Clean Energy and East Bay Community Energy.

ANALYSIS & DISCUSSION
Solicitation Process Update
Pioneer Community Energy (“Pioneer”) issued a solicitation in March 2022 to identify potential Prepay Suppliers, through which Goldman Sachs was selected.

Prepay Parties
The prepay transaction requires the selection and involvement of multiple parties. Names and functions are as follows:
• Prepay Buyer: Pioneer
o Role: Provide energy contracts to flow through prepay and receive a discount on the contract price
• Prepay Seller: Goldman Sachs
o Role: Structure transaction and pay contract price to PPA provider

PREPAY BUYER
(CCA)

NON-RECOURSE

TAX EXEMPT
BONDS
EXISTING PPA's
TO BE

ASSIGNED

MUNICIPAL

CONDUIT

EXISTING PPA

COUNTERPARTY
PREPAY

SUPPLIER
(BANK)

CONTRACT PRICE LESS DISOUNT
MWh's + REC's

CONTRACT PRICE
PREPAYMENT $
MWh's + REC's + DEBT

SERVICE
BOND

PROCEEDS
DEBT

SERVICE
CONTRACT PRICE MWh's + REC's l l
◄----------------------------------
Agenda Item: 2 Agenda Date: 5/19/2022

 Note: No legal obligation or liabilities are being entered into currently; approval of legal services in June allows Pioneer to negotiate documents with Goldman Sachs for which staff will later return to the Board for approval of the official prepay transaction and associated bond issuance
• Financial Advisor: Michael Berwanger of PFM
o Role: Advise Pioneer in negotiations; recommended by Municipal Securities Rulemaking Board • Bond Counsel: To Be Determined (“TBD”)
o Role: Represent bondholders
• Tax Counsel: TBD
o Role: Provide tax opinion on transaction
• Prepay Counsel: Hall Energy
o Role: Represent Pioneer’s interests, supporting drafting and negotiating terms of prepay agreement and associated energy supply agreements
• Disclosure Counsel: TBD
o Role: Prepare Official Statement / Prospectus
• Bond Issuer: TBD but exploring opportunity to join California Community Choice Financing Authority (“CCCFA”)
o Role: Issue tax-exempt bonds for prepay
• Rating Agency: TBD
o Role: Provide a credit rating to the bonds
Timeline
With the approval of the various legal counsel contracts, staff will begin prepay structuring and document negotiations with Goldman Sachs. Draft documents should be prepared for a deal execution by the end of the 2022 calendar year.

Two factors may delay or extend this timeline:

1. Current market conditions have collapsed the taxable vs. tax-exempt bond interest rate spread necessary to go to market with the prepay and achieve the discounts we are seeking. The marketing and execution of the prepay will be dependent upon the appropriate market conditions.

2. Power contract assignment consents will need to be executed by PPA providers. Once the transaction structure is determined, staff will identify contracts to assign and go to the respective counterparties for assignment consent; should the counterparties be slow to consent, this could extend the timeline of deal execution.

Next Steps
Staff expects to bring to the Board for approval most of the legal support contracts and an application for associate membership to CCCFA as the bond issuer.

STRATEGIC PLAN
The report supports the following strategic plan priorities:

1. Quality of Service by keeping rates stable and competitive

2. Financial Stability & Strategic Growth by supporting significant cost savings

FISCAL IMPACT
Financial Benefit: Expectation upon execution of this transaction is to achieve an 8-10% discount per year on power quantities delivered under the prepay, compared to the price in the assigned contracts. However, the exact discount will be dependent on the spread between taxable and tax-exempt debt rates. While the savings are not guaranteed in the structure, there is no negative financial impact associated if the deal does not produce targeted savings levels.

Agenda Item: 2 Agenda Date: 5/19/2022

Professional Services Fees: Professional services will be the most significant cost with this transaction. These fees will be structured as contingent fees paid out of the proceeds of the prepay transaction upon the successful execution of the transaction.

The details of the prepay agreement and expected savings will be brought to the Board for review and approval after documents are negotiated and prepared over the coming months.

ATTACHMENTS

1. There are no attachments with this report.

Staff Report – Item 3
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 3: Proposed Fiscal Year 2022-23 Budget
Date: 5/19/2022

RECOMMENDATION
Receive a presentation on the Proposed Fiscal Year 2022-23 Budget and provide direction as appropriate. The recommended budget will be brought to the Board for approval at the June 16, 2022 Board meeting.

AUDIT & FINANCE COMMITTEE REVIEW
The Audit & Finance Committee received a presentation of the Proposed FY 2022-23 Budget from staff at the May 11, 2022, meeting. The committee provided feedback on the presentation, which has been incorporated in the presentation to the Board.

BACKGROUND
The Proposed Budget is a first view of the budget to the Governing Board (“Board”) with staff incorporating feedback and recommendations from this review into the FY 2022-23 Recommended Budget for adoption at the June Board meeting. The FY 2022-23 Budget is effective July 1, 2022.

ANALYSIS & DISCUSSION
The Proposed FY 2022-23 Budget is balanced and presents Pioneer Community Energy (“Pioneer”) in stable financial condition. The Proposed Budget projects total revenues of $200.8 million and total expenses at $164.3 million resulting in a projected contribution to reserves of $36.5 million The table below summarizes the proposed budget at a high-level:

Significant drivers impacting both revenues and expenses include:

1. The Proposed Budget incorporates twelve months of revenue and expense increases due to the expansion to El Dorado County and City of Placerville. The FY 2021-22 Mid-Year Budget only included six months of the impact of expansion.

2. Revenues reflect the rate change approved in March 2022. The budget assumes no changes to rates. ($ in Millions)
Energy Revenues $200.7
Power Supply 149.8
Contribution Margin $50.9
Operating Expesnes 10.8
Operating Margin $40.1
Non-Operating Net Expenses 3.6
Contribution to Reserves $36.5
fJONEER

COMMUNITY ENERGY
Agenda Item: 3 Agenda Date: 5/19/2022

Operating Revenues
Pioneer receives most of its revenues through rates with a small contribution from the Congestion Revenue Rights program through the California Independent System Operator (“CAISO”). Pioneer does not receive any subsidies from our member agencies. The chart below illustrates our cash inflow:

Operating Expenses
Pioneer’s operating expenses are driven by power supply with fixed costs being a small portion of the budget.

This allows Pioneer to be nimble and act quickly when the market horizon changes. The following chart illustrates our cash outflow:

Energy Sales

98.47%
CRR

1.49%
Interest

0.04%
Revenues $200.8 million
Power Supply

91.19%
Other

6.58%
Debt Service

2.23%
Expenses $164.3 million
Agenda Item: 3 Agenda Date: 5/19/2022

Personnel
Organization Chart
Fiscal Year 2021-22 authorized 13 full time positions and the proposed fiscal year 2022-23 Budget proposes an increase in staffing to 17 full time positions and one part time position. This staffing increase has a cost of $676 thousand.

New Positions
The 4 proposed full-time positions are:
• Legislative & Regulatory Manager – Although Pioneer does receive Regulatory and Legislative support through our trade association, CalCCA, Pioneer’s initiatives may not always line up as a priority. An example would be support with biomass that is important to Pioneer but not necessarily a priority for CalCCA. This position in the short-term will assist with the implementation of AB 843 and in the long-term assist with supporting Pioneer’s interest in the legislature and with the California Public Utilities Commission.
• Program Specialist I (January 2023 start) – Position will support the implementation of program recommendations from the Customer Programs Advisory Committee and additional programs support through Public Purpose Funds.
• Residential Coordinator – Position will support the Sr. Residential Coordinator with customer bill analysis and data management.
• Senior Manager, Quantitative Analysis & Modeling – Position will enhance our internal risk management and power supply market analysis while supporting the rollout of a structured product that will provide grid stability for our large user customers while providing revenue stability for Pioneer.

The 1 part-time intern position would be for Marketing with a planned start of January 2023. The intern would support website updates and other marketing initiatives. The recruitment will be limited to colleges and universities in Pioneer’s service territory.

Reclassifications
There are two current positions titled as Program Specialist II that originally worked with the mPOWER program and have transitioned over time to different responsibilities on the Community Choice Aggregate (CCA) side of the business. New job titles and job descriptions reflect the actual work that is being performed, with the new titles being: (1) Internal Operations Coordinator and (2) Senior Residential Coordinator. The salary bands will be unchanged from their prior salary band.

The following organizational chart illustrates the changes in the Proposed Budget:

Agenda Item: 3 Agenda Date: 5/19/2022

Benefit Changes
Salary Ranges: Included in the budget is a 6.5% adjustment to the salary matrix ($19,000), based on the February-to-February change in the U.S. Bureau of Labor Statistics San Francisco-Oakland-Hayward Consumer Price Index. Pioneer’s salary matrix is structured as a salary range rather than a salary step system. This means that even if the salary matrix is adjusted upward, only employees that are at the top of the salary matrix would realize a benefit from the salary matrix change, but advancement is still contingent on the employee receiving a satisfactory annual evaluation. Also, employees that fall below their assigned minimum salary band would be adjusted upward to at least meet the minimum salary.

Health Coverage: Employees have choices when they select a medical/dental/vision plan and Pioneer provides a fixed set amount towards the premium cost, and premiums that exceed the fixed amount are paid by the employee. If an employee declines health insurance, the employee receives in exchange a $300 monthly payment. If an employee selects insurance that cost less than the fixed amount provided by Pioneer, the amount is savings to Pioneer. The recommendation is to have an increase in the fixed amount provided by Pioneer. Based on the U.S. Bureau of Labor Statistics for Medical Care San Francisco-Oakland-Hayward CPI, the change in the index from when the Board first approved the fixed amounts is 12% for medical and 4% for vision and dental. The fixed amount has not been modified since its first adoption by the Board which was March 2018 for medical and December 2018 for vision/dental. The adjustment is recommended to adjust with the start of the new premium year (January 2023) with an estimated cost of $5,000 for Fiscal Year 2023.

Governing Board
Executive Director
Director of
Finance &
Administration
Senior Financial
Analyst
Internal
Operations
Coordinator
Financial &
Administrative
Analyst I
Director of Public
Affairs, Marketing
& Programs
Senior Residential
Coordinator
Key Accounts
Manager
Residential
Coordinator
Programs
Specialist I
Marketing Intern
(Part-time)
Chief Operating
Officer
Legislative &
Regulatory
Manager
Legislative &
Regulatory
Analyst I
Sr. Manager,
Quantitative
Analysis &
Modeling
Power Resources
Manager
Power Contracts
Manager
Board Clerk/
Executive
Assistant
 17 Full-time Positions (proposed)
o 2 Repurposed Positions
o 4 New Full-time Positions
 1 New Part-time Position (proposed)
Agenda Item: 3 Agenda Date: 5/19/2022

The fixed amount changes are itemized in the table below:

Current Monthly Proposed Monthly for 2023
Benefit Single Emp + 1 Emp +2 or more Single Emp + 1 Emp +2 or more Medical 900.00 1,350.00 1,755.00 1,008.00 1,512.00 1,965.60 Dental 62.00 118.00 118.00 64.48 122.72 122.72
Vision 11.00 18.00 18.00 11.44 18.72 18.72
At the Audit & Finance Committee, it was suggested that Pioneer make a change that would pay an employee the difference between the benefit stipend and the premium cost if the premiums were less. This is estimated to have a full year cost of $48,000.

Additional Paid Time Off: The Christmas through New Year’s week is a period of time where Pioneer’s business needs are minimal and many of the consultants that assist in the operation of Pioneer have closures during this period. Many CCA’s also close during this period offering their employees this additional holiday period as time off. This additional benefit would close the Pioneer offices and providing the employees a holiday time for the inclusive period of December 24th to January 1st each year. Because the current granting of holidays provides the preceding or succeeding workday as a holiday when the holiday falls on the weekend and this added benefit does not, the additional holiday time provided here will vary from 3 additional days to 5 additional days from year to year. If critical operational business is necessary, the Executive Director or Director will assign an employee to work the needed time during the holiday period and the employee in exchange will receive vacation time to use at a different time. Although there is not a dollar cost to this benefit it does have a value and that value ranges from 1.15% to 1.9%.

Retirement Contributions for Non-Management: Retirement contributions for non-management employees are recommended to be adjusted. When this benefit was originally established, the non-management employees received 62% of the management retirement contribution. The management retirement contribution changes with the IRS changes to the 457b contribution limits. This benefit change for non-management employees would restore the 62% retirement contribution relationship between non-management employees and management employees. This change would be programmed to be effective January 2023 which aligns to when the IRS modifies the contribution limit, the estimated cost of this benefit is $4 thousand for Fiscal Year 2022-

23. Employee Assistance Program: Employee Assistance Programs have helped many employees and employers during times of individual crises and the value of this benefit has been highlighted during the pandemic period.

Pioneer is recommending adding this benefit. The annual cost is estimated to be $1 thousand dollars.

Summary of Benefits Changes: The overall goal of these changes is to maintain Pioneer’s competitiveness in order to attract and retain our employees. With these proposed changes, labor costs will account for approximately 2% of the overall expense budget.

Financing Highlights
Pioneer has a 15-year $10.5 million term loan with Umpqua Bank that was used to pay in full Pioneer’s loan obligation with Placer County that had initially provided necessary start-up funding. The annual debt service is $950 thousand, and the terms of the loan allow Pioneer to pay up to $2,100,000 annually in extra principal payments without being subject to a prepayment penalty. The budget proposes this extra payment which will save Pioneer $1.17 million in interest costs and decrease the term of the loan by 3.5 years.

Over time, staff have observed that there has been a decrease in the number of energy suppliers that have responded to Pioneer’s solicitations for energy. In addition, some of the suppliers have chosen to minimize additional exposure to Pioneer. Pioneer’s willingness and capacity to post collateral through a Letter of Credit Agenda Item: 3 Agenda Date: 5/19/2022

should broaden the interest of suppliers to Pioneer’s solicitations and past indicative bids have demonstrated potential energy savings from suppliers that require collateral postings. Staff is currently working on obtaining this financial tool with Umpqua Bank and expect this item to come to the Board in the near future. The budget has programmed funding of $350 thousand for this purpose.

The California Public Utility Commission is contemplating a change to the Financial Security Requirement that is posted by CCA’s, such as Pioneer. Although this process is preliminary, the budget includes funding to meet this potential increase.

Reserves
During Fall 2021, the Board approved a revised Reserve Policy that established a minimum target of 160 days of cash liquidity and a timeline to achieve that minimum target in 3 to 5 years. Staff estimates that Pioneer should reach over 140 days of liquidity by June 2023 and achieve the minimum Reserve target of 160 days during Fiscal Year 2023-24. The following chart illustrates Pioneer’s expectation for achieving the target:
mPOWER
mPOWER was closed to new applications on August 31, 2021, and funding of the final applications at this point has not been finalized. Staff is working with the County to appropriately program a Fiscal Year 22-23 Budget for mPOWER. Ongoing assessment revenue, bond servicing costs and administration costs will continue until the last Bond is paid in full. The mPower budget will be included in the Recommended Budget to the Board in June.

FISCAL IMPACT
The Proposed FY 2022-23 Budget includes total revenues of $200.8 million and total expenses of $164.3 million resulting in a projected contribution to reserves of $36.5 million.

ATTACHMENTS

1. Draft Proposed Fiscal Year 2022-23 Budget Summary
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$100,000
FY21 FY22 FY23 FY24
$ in Thousands

RESERVES
Reserves Target -

EXHIBIT A
$ in Thousands Adopted Mid-Year Proposed
Energy Revenues FY 2021-22 FY 2022-23 $ %
Energy Sales $125,940,000 $199,630,000 $73,738,000 58.6% Green100 Sales $48,000
Congestion Revenue Rights $3,250,000 $3,000,000 ($250,000) -7.7% Less Uncollectable Accounts ($1,414,000) ($1,996,780) ($582,780) 41.2% Total Energy Revenues $127,776,000 $200,681,220 $72,905,220 57.1% Energy Expenses
Power Supply $105,314,000 $149,977,000 $44,663,000 42.4% Operating Margin $22,462,000 $50,704,220 $28,242,220 125.7% OPERATING EXPENSES Adopted Mid-Year Proposed
Administration FY 2021-22 FY 2022-23
Compensation $532,000 $566,252 $34,252 6.4%
Contract Services $311,000 $431,325 $120,325 38.7%
Operating Expenses $654,000 $656,225 $2,225 0.3%
Administration Total $1,497,000 $1,653,802 $156,802 10.5% Finance
Compensation $681,000 $745,530 $64,530 9.5%
Contract Services $356,000 $498,350 $142,350 40.0%
Operating Expenses $215,000 $197,983 ($17,017) -7.9%
Finance Total $1,252,000 $1,441,863 $189,863 15.2%
Power Procurement
Compensation $464,000 $1,003,149 $539,149 116.2%
Contract Services $1,236,000 $1,285,426 $49,426 4.0%
Operating Expenses $13,000 $35,450 $22,450 172.7%
Power Procurement Total $1,714,000 $2,324,025 $610,025 35.6% Customer Care
Compensation $249,000 $315,147 $66,147 26.6%
Contract Services $1,477,000 $2,895,012 $1,418,012 96.0% Operating Expenses $656,000 $25,263 ($630,737) -96.1%
Account Care Total $2,382,000 $3,235,422 $853,422 35.8% Marketing
Compensation $337,000 $454,211 $117,211 34.8%
Contract Services $345,000 $546,240 $201,240 58.3%
Operating Expenses $210,000 $243,050 $33,050 15.7%
Marketing Total $892,000 $1,243,501 $351,501 39.4%
Legislative & Regulatory
Compensation $283,000 $361,386 $78,386 27.7%
Contract Services $368,000 $353,808 ($14,192) -3.9%
Operating Expenses $51,000 $5,250 ($45,750) -89.7%
Legislative & Regulatory Total $702,000 $720,444 $18,444 2.6% Programs
Compensation $53,000 $92,463 $39,463 74.5%
Contract Services $0 $100,000 $100,000
Operating Expenses $3,000 $3,500 $500 16.7%
Programs Total $56,000 $195,963 $139,963 249.9%
Aggregation of all Divisions
Compensation $2,599,000 $3,538,138 $939,138 36.1%
Contract Services $4,093,000 $6,110,161 $2,017,161 49.3% Operating Expenses $1,802,000 $1,166,721 ($635,279) -35.3% Total Operating Expenses $8,494,000 $10,815,020 $2,321,020 27.3% Debt Service
Term Loan Debt Services $950,000 $950,000 $0 0.0%
Addiitonal Term Loan Principal $0 $2,100,000 $2,100,000 Line/Letter of Credit Fees $0 $250,000 $250,000
Financial Security Requirement $0 $356,000 $356,000
Debt Service Total $950,000 $3,656,000 $2,706,000 284.8% Total Expenses $114,758,000 $164,448,020 $49,690,020 43.3% Non Operating Revenue
Investment gains (losses) $100,000 $75,000 ($25,000) -25.0% Miscellaneous Income $180,000 $0 ($180,000) -100.0%
Non Operating Revenue Total $280,000 $75,000 ($205,000) -73.2% Total Non Operating Revenue $280,000 $75,000 ($205,000) -73.2% Contribution to/(from) Reserves $13,298,000 $36,308,200 $23,010,200 173.0%

PIONEER COMMUNITY ENERGY (CCA)
Proposed Budget for FY 2022-2023
Variance

Staff Report – Item 4
To: The Governing Board
From: Brad Koehn, Director of Finance and Administrative Services Item 4: Line of Credit and Letter(s) of Credit with Umpqua Bank Date: 5/19/2022

RECOMMENDATION
Adopt Resolution:

1. Approve and authorize the Executive Director to execute a Line of Credit and Letter(s) of Credit with Umpqua Bank, provided that the term does not extend beyond 5 years, interest costs does not exceed Prime + 1%, and the annual Line of Credit fee does not exceed 1%, and the Letter(s) of Credit Fee does not exceed 3% per annum on the required credit amount.

2. Authorizes the Executive Director to execute all documents deemed necessary to consummate the Line of Credit and Letter(s) of Credit with Umpqua Bank.

AUDIT AND FINANCE COMMITTEE RECOMMENDATION
The Audit and Finance Committee met on May 11, 2022 and received a presentation from staff. The committee discussed the Line of Credit and Letter(s) of Credit and the possible energy savings that could be realized with energy suppliers that require collateral. The Committee voted to recommend to the Board approval of obtaining a Line of Credit and Letter(s) of Credit from Umpqua Bank and Authorizing the Executive Director to execute all documents deemed necessary to consummate the necessary agreements.

BACKGROUND
Pioneer routinely and regularly solicits energy bids that are in accordance with the Energy Risk Management Policy. Over time, staff has observed that fewer energy suppliers are providing bid responses to the energy solicitations. It is to Pioneer’s advantage that multiple suppliers bid on Pioneer’s energy solicitations to ensure that Pioneer is receiving the benefit of a competitive market pricing. It is not uncommon for energy suppliers to be hesitant to conduct business with Community Choice Aggregators that have not received a credit rating without some amount of collateral. Collateral can be a cash deposit held by the supplier or a Letter of Credit.

ANALYSIS & DISCUSSION
For recent energy solicitations, Pioneer received indicative bids from energy suppliers that also required collateral to be posted. Those bids could not be selected since there were only indicative bids, but the bids do demonstrate that more suppliers would be interested in doing business with Pioneer if collateral parameters were in place. The indicative bids also demonstrated that power costs savings could offset or even exceed the cost of collateral.

Staff would evaluate future bids and consider both the diversification of suppliers to manage power supply risk and potential energy cost savings before entering into a collateral arrangement with a supplier that requires Pioneer to post a Letter of Credit.
fJONEER

COMMUNITY ENERGY
Agenda Item: 4 Agenda Date: 5/19/2022

Line of Credit and Letter of Credit
The finance structure that Umpqua Bank (Pioneer’s current banking partner) has offered Pioneer is a Line of Credit of $20 million that would be used to secure in case of default issued Letter(s) of Credit that are provided to energy suppliers.

The bank has provided indicate costs:

Line of Credit – Annual stand by fee of .75%
Line of Credit - Prime + .5% would only be applicable if Pioneer defaults on a Letter of Credit and the Line of Credit is used to support the Letter of Credit
Letter(s) of Credit – 2% per annum
The indicative offer from Umpqua has not been approved as of yet by the banks credit department and the fee(s) are still subject to change. Understanding that the fee(s) are not final as of yet, the Resolution authorizes the Executive Director to execute the necessary documents to acquire the $20 million Line of Credit and Letter(s) of Credit and provides a not-to-exceed fee authority.

Staff anticipate that during the course of Fiscal Year 2022-23 that Pioneer will be positioned to obtain a credit rating from a National Rating Agency. Once a credit rating is obtained, many suppliers will be comfortable with doing business with Pioneer without requiring collateral. For that reason, staff see this as an important financial tool that will ‘bridge’ the gap until a credit rating is obtained. The Line of Credit will have a term that will extend beyond this ‘bridge’ period to better amortize any required payments if the Line of Credit is every drawn to support the Letter of Credit(s).

FISCAL IMPACT
Pioneer will pay a Line of Credit fee and if/when Letter(s) of Credit are issued a fee based on the amount of the Letter(s) of Credit. The proposed Fiscal Year 2022-23 budget will include the estimated annual cost of those fees.

ATTACHMENTS
Resolution— Approving and Authorizing the Executive Director to Execute any and all documents and agreements to obtain Line of Credit and Letter of Credit Agreements with Umpqua Bank 5/19/2022
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 May 19, 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 obtains energy provided by energy suppliers; and WHEREAS, an energy supplier may require collateral either in the form of cash or a Letter of Credit in order to agree to an energy contract with Pioneer; and WHEREAS, it is prudent for Pioneer to broaden the number of energy suppliers that may bid on a Pioneer solicitation; and
WHEREAS, past energy supplier’s indicative pricing for supplier’s that require some amount of collateral have demonstrated cost of energy savings even after accounting for the cost of collateral; and
WHEREAS, Umpqua Bank has offered cost and terms for a Line of Credit and Letter(s) of Credit financial instruments that will enable Pioneer to preserve cash liquidity and expand the number of energy suppliers interested in conducting business with Pioneer; and WHEREAS, the Line of Credit and Letter of Credit Agreement(s) would allow Pioneer to offer a Letter of Credit collateral to potential power suppliers as a tool in negotiating favorable pricing and attract more credit worthy suppliers; and
In the matter of: A Resolution Approving and
Authorizing the Executive Director to Execute
any and all documents and agreements to obtain
Line of Credit and Letter of Credit Agreements
with Umpqua Bank
Resolution No. ___

2 NOW THEREFORE, 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 and authorizes the Executive Director to execute a Line of Credit up to $20 million and Letter(s) of Credit with Umpqua Bank, provided that the term does not extend beyond 5 years, interest costs does not exceed Prime + 1%, and the annual Line of Credit fee does not exceed 1%, and the Letter(s) of Credit Fee does not exceed 3% per annum on the required credit amount.

3. The Governing Board hereby authorizes the Executive Director to execute all documents deemed necessary to consummate the Line of Credit and Letter(s) of Credit with Umpqua Bank.

4. This Resolution shall take effect immediately upon its adoption.

Attachment: A: Umpqua Bank Line of Credit and Letter(s) of Credit Term Sheet March 31, 2022
Brad Koehn, Director of Finance
Pioneer Community Energy
Dear Brad,
We have reviewed your financing request and can provide the following indicative rate and fee schedule.

Loan Amount: $20,000,000
Rate: Prime + .5%
Line of Credit Fee: 0.75% per annual renewal
Letter of Credit Fee: 2% per annum on the required credit amount Legal fees: TBD
The following provides an illustrative example of fees and cost based on a three-year utilization assuming approval of annual renewals.

Financing Terms Amount 2022 2023 2024
Annual Line Fee 0.75% 150,000 150,000 150,000
Annual Letter of Credit Fee 2.00%
LC#1 2 Years

5,000,000 100,000 100,000
LC#2 3 Years

8,000,000 160,000 160,000 160,000
LC#3 3 Years

6,000,000 120,000 120,000 120,000
530,000 530,000 430,000
If you wish to proceed will provide a commitment letter addressing more formal terms for your signature.

Sincerely,
Vanessa Ryan Anastasia Efstathiu
SVP, Corporate Relationship Manager VP, Corporate Portfolio Manager Corporate Banking Corporate Banking
This letter represents Umpqua’s expression of interest in underwriting and obtaining credit approval for the Credit Facility and is for discussion purposes only and does not constitute a commitment from Umpqua. Any commitment to lend that we might make is subject to the fulfillment of a number of conditions that include, but are not limited to, our normal credit approval process, an in-depth investigation of the purpose of the loan, the borrower and collateral as applicable and deemed satisfactory to Umpqua at our sole discretion. The above rates are subject to change upon receipt of Umpqua Bank Loan Term Sheet.

Staff Report – Item 5
To: The Governing Board
From: Mark Riffey, Director of Public Affairs, Marketing and Programs Item 5: Time-of-Use Implementation Update
Date: 5/19/2022

RECOMMENDATION
Receive an update on PG&E’s 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 electricity consumption habits away from the 4 pm to 9 pm period, when demand peaks and energy costs are higher, to times in the day when solar power production is greater, and electricity is cheaper.

PG&E started transitioning all eligible residential customers on flat rates to the TOUC rate plan (4 pm to 9 pm peak hour) in April 2021, outside of Pioneer’s service territory. Pioneer’s service area (including El Dorado County) had been slated for transition in October 2021, then moved to February 2022 (along with all hot climates), and then finally transitioned in April 2022. PG&E identified 31,405 eligible customers in the Pioneer service area. These customers received notices in January 2022 of the pending move along with a business reply card to exercise their choice on rate plans. While the CPUC ordered PG&E to conduct the migration, customers still had the option to “opt-out” of the transition and remain on their original rate.

PG&E reported that in the Pioneer service area 10,764 customers exercised their right to choose a different rate – either E-1 or TOUD (5 pm to 8 pm peak) – through the business reply card. Others may have exercised the right online or through a call. An estimated 19,000 customers took no action and are now on a hybrid rate:

TOUC for transmission and distribution (PGE); E-1 for generation (Pioneer).

ANALYSIS & DISCUSSION
While the Pioneer Board chose not to participate in the automatic enrollment onto TOUC for generation, staff did work closely with PG&E to amplify the message about the importance of making a choice through its webpage, joint press releases on bill protection, expansion presentations, social media posts, newspaper articles, a joint Pioneer-hosted TOU webinar, and email alerts.

Pioneer’s Board also chose to provide bill protection to customers who chose to participate in TOUC voluntarily.

Last date to enroll was April 30, 2022. Customers who voluntarily enroll on TOUC receive up to one year of protection. Should the customer pay more on TOUC than on E-1, Pioneer will refund the difference – up to 12 months or when the customer left TOUC, whichever is less. The 19,000 or so customers enrolled into TOUC for Transmission and Distribution will receive bill protection from PG&E. They remain on Pioneer’s E-1 rate. fJONEER

COMMUNITY ENERGY
Agenda Item: 5 Agenda Date: 5/19/2022

STRATEGIC PLAN
Local Engagement – The work to communicate the impacts to our customers has continued to improve our relationship with all customers.

Quality in Service - Pioneer’s communication and monitoring efforts has kept our customers informed of their options and maintaining their right to choose.

FISCAL IMPACT
None

ATTACHMENTS
None

Staff Report – Item 6
To: The Governing Board
From: Alexia Retallack, Programs Specialist II
Item 6: Enhanced Powerline Safety Shutoff Program for 2022 Report Date: 5/19/2022

RECOMMENDATION
Receive report on PG&E’s Enhanced Powerline Safety Shutoff Program (EPSS) in Pioneer’s service area for 2022.

BACKGROUND
In July 2021, PG&E began a program of installing specialized equipment that would allow for automatic shutoff of equipment in the event of an anomaly in the electrical current occurring on the line (arc, voltage drop, etc.).

These anomalies can occur from equipment failure, vegetation strikes, wildlife interaction, or similar events.

PG&E initiated the program as part of their Wildfire Mitigation Plan but did not notify the communities affected by the program about the work and possible impacts.

The impacts to Placer and El Dorado Counties were significant resulting in criticism of PG&E from past president of the California Public Utilities Commission (CPUC), Marybel Batjer. She demanded PG&E begin reporting on the outages and impacted circuits. In response, Pioneer staff sent a letter supporting President Batjer’s comments and requested additional information in the future PG&E reports.

PG&E responded to the CPUC on December 8, 2021, with a letter describing the intent of the program, information included in the submitted spreadsheet and a description of the efforts PG&E has undertaken to improve their program. PG&E recently submitted a report to the Wildfire Safety Division, which transitioned from the CPUC to the Office of Energy Infrastructure Safety (Energy Safety) under the Natural Resource Agency.

PG&E reported in its Wildfire Mitigation Plan that the EPSS pilot showed an 80% reduction in ignitions as a result of using the technology. PG&E announced that it will deploy an additional 988 EPSS devices in 2022 to the High Fire Threat Districts (HFTD) and the High Fire Risk Areas (HFRA as identified by PG&E) and some areas adjacent to those HFTD and HFRA.

ANALYSIS & DISCUSSION
PG&E expects to complete installation of the EPSS equipment by August 2022. PG&E stated that it “will continue to adjust these safety settings, undertaking a more surgical approach to only activate the settings in areas most at risk and to limit reliability impacts to our customers…” (PG&E WMP 2022).

Pioneer has been sharing information about EPSS programs with customers as it comes available. Pioneer has amplified information about PG&E webinars, partnered on communication with PG&E, and augmented social media posts. Pioneer also shared impacts and data with the CPUC.

El Dorado and Placer Counties experienced many hardships as a result of the EPSS program in 2021. The resulting reports, data, and communication about the EPSS program, implementation, operations, and outages is scant. It seems to be a repeat of the 2019 Public Safety Power Shutoff (PSPS) experience, despite all of the lessons learned and requirements set under R.18-12-005 (De-Energization aka PSPS). fJONEER

COMMUNITY ENERGY
Agenda Item: 6 Agenda Date: 5/19/2022

Pioneer staff initiated an effort to bring evaluation of the EPSS program specifically back under the CPUC De-Energization R.18-12-005 including but not limited to pre-activation communication, incident reports, circuit specific reporting, customer impacts, mitigation efforts, etc. Pioneer staff recognized that the Natural Resources Agency does not have the authority of the CPUC as it applies to utilities, and the oversight and regulation of the EPSS program should parallel that of PSPS. Pioneer is coordinating with other vested parties like the Rural County Representatives of California (RCRC) and the Joint Local Governments, both of which participated in the De-Energization proceeding with Pioneer and others. The intent of this collaboration is to submit a motion to the CPUC to take up the EPSS program to ensure consistency in programs, nomenclature, and reporting across the Investor-Owned Utilities as well as implementation of best practices to achieve the greatest protection with lowest customer impact.

STRATEGIC PLAN
Local Engagement – The work to communicate the impacts to our customers has continued to improve our relationship with all customers.

Quality in Service – The extensive communication efforts has resulted in a high quality of customer service.

Operational Excellence - This effort is intended to ensure Pioneer customers have reliable and safe electric service.

FISCAL IMPACT
Costs are limited to time for legal consultant to prepare a motion. Pioneer is working with a coalition to share the workload and minimize the costs to Pioneer. Parties have committed already to supporting the drafting of the motion.

Staff Report – Item IV-B
To: The Governing Board
From: Don Eckert, Executive Director
Item IV-B: Executive Director Report
Date: 5/19/2022
REPORT
Personnel
The Power Contracts Manager is posted and is the only remaining open position.

Public Safety Power Shutoff (“PSPS”) Event
There are no PSPS events to report.

Executive Director Agreements Executed
There are no agreements to report.

Long-Term Power Purchase Agreement (“PPA”) – Yellow Pine Project Pioneer recently signed a long-term PPA with NextEra Energy for their Yellow Pine project. The Yellow Pine Solar facility is a 60MW solar project that is paired with a 4-hour, 53MW co-located battery storage facility. This project is essential for Pioneer in meeting the Mid-Term Reliability as well as our long-term Renewables Portfolio Standard requirements.

Legislative Bill Support
Staff has contacted each of Pioneer’s Member Agencies for support of the following bills:
• AB 2878 – Support – Directly in line with Pioneer’s desire to expand bioenergy projects • SB 1109 – Support – Extend the life of current bioenergy contracts and increase the generating capacity of bioenergy projects to 225 MW
• SB 881 – Oppose – Removes the autonomy and self-governance of CCA’s through more oversight by the California Public Utilities Commission (“CPUC”)
As of the date of this report, City of Colfax has submitted a letter of support/oppose on these key bills. Staff request support by all our member agencies that provides future opportunities in bioenergy and limits more oversight by the CPUC.

Website Update
Staff appreciates the Board’s efforts to review the website to improve its effectiveness and to contribute to quality control. We look forward to the official launch of the new website in early June.

SB 1383 and Possible Compliance through Biomass
SB 1383 is intended to reduce the impact of short-lived climate pollutants—namely methane created by the decomposition of organic waste—by requiring the diversion of organic waste from landfills. To this end, the SB 1383 Regulations require jurisdictions – specifically, counties and cities – to adopt ordinances or similarly enforceable mechanisms by January 1, 2022, to mandate that organic waste generators and other entities fJONEER

COMMUNITY ENERGY
Agenda Item: IV-B Agenda Date: 5/19/2022

subject to the jurisdiction’s authority, including haulers, commercial edible food generators and food recovery organizations, comply with the SB 1383 Regulations.
“Jurisdiction” is defined by CalRecycle’s SB 1383 regulations as “a city, county, a city and county, or a special district that provides solid waste collection services. Pioneer and other CCAs do not provide solid waste collection services and are therefore not “jurisdictions” that are directly subject to the requirements of SB 1383.

One way for jurisdictions to demonstrate compliance with SB 1383 is to divert organic waste for biomass conversion. The “credit” for this diversion goes to the jurisdiction that diverts the solid waste. At this point in time, we are not aware of any direct SB 1383 credit being provided to jurisdictions that procure energy generated through biomass conversion. As an example, the feedstock being used at Sierra Pacific Industries’ (SPI) biomass plant in Lincoln (currently Pioneer’s only biomass contract) cannot be counted towards SB 1383 compliance unless the jurisdiction(s) can prove that the feedstock came from organic waste diversion from their respective territories. The SPI Lincoln plant is built adjacent to a sawmill and receives most of its feedstock from the waste produced, which would not qualify because it would not otherwise be diverted to a landfill (the biomass would either be burned as fuel or resold, and not sent to a landfill). In the instances where they do buy feedstock externally to meet their needs, it is possible that certain jurisdictions can receive credit under SB 1383 – Pioneer is coordinating with SPI to find out if SPI purchases any feedstock from member jurisdictions that would otherwise have been sent to a landfill. To the extent the city or county members of Pioneer contribute organic waste for biomass conversion, that contribution would entitle that jurisdiction to credit under SB 1383.

Update on Legislation Impacting the Brown Act
AB 1944
Summary: AB 1944 would allow a local agency to use teleconferencing during public meetings without having to publish private address and make their private address open to members of the public if the members participating remotely are identified on the agenda (must be updated if changes after agenda posted) and if, by a majority vote, the body decides that members will not be required to identify the address of any private location from which the member elects to teleconference (determination remains applicable to the legislative body until such time as the legislative body votes otherwise). The meeting would be required to be live streamed and allow for remote public participation. This bill would sunset January 1, 2030.

Status Update:
• AB 1944 passed out of the Local Government Committee on May 4 (Ayes 5, Noes 2) and went to the Assembly Floor
• The Assembly third reading file date is set at May 12th • Last amended on 04/18/22
AB 2449
Summary: AB 2499 would allow a local agency to use teleconferencing during public meetings so long as at least a quorum of members of the legislative body participates in person, without requiring that each teleconference location be noticed and accessible.

Status Update:
• Referred to Assembly Committee on Local Government on March 3rd • Not aware of a hearing set at this point
Executive Director Power Supply Contracts Executed
The following agreements have been executed by the Executive Director, consistent with the authority delegated by the Board:

Counterparty Name
Execution
Date Type Product Start Date End Date Notional Value
Morgan Stanley Capital Group 4/18/2022 Buy System Power 1/1/2023 12/31/2023 $16,108,663 Townsite Solar, LLC 4/6/2022 Buy Renewable Energy - PCC1 5/1/2022 12/31/2022 $275,000 Yellow Pine Solar II, LLC 4/21/2022 Buy Resource Adequacy - System 12/1/2023 11/30/2043 $134,577,600 Yellow Pine Solar II, LLC 4/21/2022 Buy Renewable Energy - PCC1 12/1/2023 11/30/2043 $134,923,771 Clean Energy Alliance 4/20/2022 Buy Resource Adequacy - System 8/1/2022 8/31/2022 $117,600 The Energy Authority 4/26/2022 Sell Resource Adequacy - System 9/1/2022 9/30/2022 $160,000 Agenda Item: IV-B Agenda Date: 5/19/2022

Presentations and Relevant Meetings attended by the Executive Director

1. Participated in CalCCA Weekly/Monthly Board meetings

ATTACHMENTS

1. Agenda Planning Document

2. Monthly Legislative and Regulatory Update

3. April 2022 Minutes from Community Advisory Programs Committee Agenda Planning Document – Pioneer Community Energy Updated 5/13/2022 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
MAY 19, 2022
3:00 PM
(Post Agenda: May 13)
JUNE 16, 2022
3:00 PM
(Post Agenda: June 10)
JULY 21, 2022
3:00 PM
(Post Agenda: July 15)

IN THE FUTURE
General Function I Agenda Review Agenda Review Agenda Review Consent
1a
Approve meeting minutes
APR 21, 2022 (Action - Eckert) Teresa
Approve meeting minutes
MAY 19, 2022 (Action - Eckert) Teresa
Approve meeting minutes
JUN 16, 2022 (Action - Eckert) Teresa
(FEB) By-Laws Article V, Section 5.2
1b MONTHLY – reaffirm Pioneer AB 361
Remote Meeting Continuation Findings
& receive Leg/Reg update (Action – Eckert) General Counsel MONTHLY – reaffirm Pioneer AB 361
Remote Meeting Continuation Findings
& receive Leg/Reg update (Action – Eckert) General Counsel MONTHLY – reaffirm Pioneer AB 361
Remote Meeting Continuation Findings
& receive Leg/Reg update (Action – Eckert) General Counsel *more than 30 days from June 16 – requires
a new determination
RE: AB 361 Remote Meeting Continuation
Findings

1c Receive Draft Financials: MAR 2022
(Koehn)
Receive Draft Financials: APR 2022
(Koehn)
Receive Draft Financials: MAY 2022
(Koehn)
1d IT Policy – Asset Disposal (Action -
Koehn) Steve
1e Contract for Renewal: Maher
Accountancy (13-months > June 2023)
(Action – Koehn)
Contracts for Renewal: Capital Network
Solutions; Richards Watson Gershon;
Steve Hall; (Leg/Reg contracts TBD:

MCubed; Keyes & Fox)
Regular
2 Long-term Power Prepay Transaction
(Michael Berwanger) – presentation &
discussion (Discussion – Koehn)
Key Accounts Business Plan (Action - Riffey)Update: PSPS & EPSS Events (Discussion - Riffey)
(TBD) mPOWER report
(TBD) CPAC report
3 FY 2022-23 Proposed Budget
(Discussion - Koehn)
RES approving FY 2022-23
Recommended Budget (Action –
Koehn)
Status Update re: Expansion activities
(Discussion – Eckert)
(TBD-July) Data Flow presentation
(TBD) Power Prepay (Part 1 Tutorial)
4 RES approving Line of Credit &
Letter(s) of Credit with Umpqua Bank
(Action-Koehn)
El Dorado/Placerville “Lessons
Learned” Report (Discussion - Riffey)
(SEPT) Expansion-Impact Assessment
results
5 TOU Implementation Update
(Discussion - Riffey)
Biomass Projects Update (Discussion –
Kang)
6 EPSS Program for 2022 Report
(Discussion - Riffey) Alexia
RES authorizing legal services, bond
counsel for Power Prepay (Action – Koehn) pending May action (OCT) JPA Amendment re: Expansion
(approve issuance of a 30-day notice)
(OCT) IRP approval (Kang)
(TBD) Presentation by Biomass Producer,
Bayview (Director Hidahl)
General Function II
IV-B
Executive Director’s Report
Reports: Leg/Reg; CPAC minutes - APR;
Executive Director’s Report
Reports: Leg/Reg; Community Engagement;
Q2 Strategic Plan update; CPAC minutes –
MAY;
Executive Director’s Report
Reports: Leg/Reg; Community Engagement;
CPAC minutes – JUN;
Executive Director Report - Quarterly
Update re: Strategic Plan objectives
JUN – SEPT – DEC – MAR
IV-C Informational Items: Glossary of Terms Informational Items: Glossary of Terms Informational Items: Glossary of Terms Closed Session/
Other
If more than 30 days between meetings, must
make a new determination – NO committee
meetings scheduled during a lapsed period
Existing committee members shall be affirmed
by the Governing Body each year at its
-
February meeting I I
I I
r7
-
May 19, 2022 - Pioneer Community Energy Legislative and Regulatory Update Pioneer Community Energy Legislative and Regulatory Update May 19, 2022
Legislative Affairs
California Legislature Update
The California Legislature reconvened on January 3, 2022 to begin the final year of the two-year legislative session. All two-year bills carrying over from 2021 had to have passed through their House of Origin by January 31, 2022 to remain active legislative vehicles. The Legislature began Spring Recess on April 7, 2022 and returned on April 18, 2022 to begin a very active legislative period of ongoing Committee hearings, bill amendments and negotiations among Legislators, staff, and stakeholders. May 27, 2022 marks the final day for each house to pass bills introduced in that house. Committee meetings will then resume on May 31, 2022. Pioneer staff continues to monitor priority bills, bill amendments, and Committee hearings through the Legislative session and will keep the Board apprised as it unfolds.

Pioneer Legislative Update
Pioneer staff continues to engage with CalCCA, individual CCAs, and other stakeholders in developing legislative and policy strategies for the remaining 2022 session and beyond. Pioneer staff has also been independently engaged in advocating with the Board, Member Agencies, and our Legislative Representatives on key bills of particular importance. Position letters on several key bills have been submitted to bill authors and staff, legislators, and hearing Committees during the 2021-2022 legislative session. Meetings with Legislative Representatives to discuss key bills are being set up for the next couple of months.

Position letters submitted on active bill measures:

AB 1956 (Mathis) – Solid waste: woody biomass: collection and conversion.

Support.

The bill would create a 5-year woody biomass rural county collection and disposal pilot Program and provide funding to collect and dispose of biomass at local biomass facility to reduce GHGs had the waste been disposed of or burned. Counties with a population under 250,000 are eligible for the Program.

AB 2878 (Aguiar-Curry) – Forest Biomass Waste Utilization Program.

Support.

The bill helps to achieve the state’s forest heath and wildfire risk reduction goals by increasing the productive use of forest waste through energy generation and wood products manufacturing. In doing so, AB 2878 will: 1) help reduce future emissions related to the open burning or natural decomposition of forest residuals; 2) increase energy reliability and resiliency in those communities at greatest risk of 10NEER

COMMUNITY ENERGY
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-
May 19, 2022 - Pioneer Community Energy Legislative and Regulatory Update losing power; and 3) create jobs and improve the economy in many of California’s rural communities.

SB 612 (Portantino) – Electrical Corporations and other load serving entities: allocation of legacy resources.

Support.

This CalCCA sponsored bill proposes the Power Charge Indifference Adjustment (PCIA) Working Group 3 report to ensure fair and equal access to the benefits of legacy resources held in IOU portfolios and address the management of these resources to maximize value for all customers.

SB 833 (Dodd) – Community Energy Resilience Act of 2022.

Support.

The bill would require the California Energy Commission (CEC) to develop and implement a technical grant Program for local governments to develop community energy resilience plans and expedite permit review of distributed energy resources by local governments. The bill would require a plan to identify critical facilities, locations, and facilities where microgrids or other distributed energy resources could meet local resilience needs, and potential funding sources for implementing projects in the plan.

SB 1109 (Caballero) – California Renewables Portfolio Standard Program: bioenergy projects.

Support.

This bill proposes changing the feedstock requirements and increases the cumulative rated generating capacity from bioenergy projects to 225 MW. The bill would also require the following: require those entities with a contract to procure electricity generated from biomass that expires or expired on or before December 31, 2028, to seek to amend the contract to include, or seek approval for a new contract that includes, a 5-year extension date in the contract if that contract was operative in 2022.

SB 881 (Min) – Load Serving Entities (LSE): integrated resource plans.

Oppose; updated from Oppose, Unless Amended.

This bill would require the CPUC to prescribe and require each LSE to undertake sufficient procurement to achieve a diverse, balanced, and reliable statewide portfolio and realize specified electricity sector greenhouse gas emissions reductions. The CPUC may assess penalties to LSEs that fail to satisfy procurement obligations and may authorize additional procurement to satisfy unmet needs.

SB 1287 (Bradford) – Electric service providers (ESP) and community choice aggregators: financial security requirements (FSR).

Oppose.

This bill would require the posted FSR amount, or demonstrated insurance amount, at the time of registration by an ESP or CCA to be no less than $500,000, rather than the current amount of $147,000.

The bill would also require the CPUC to update the FSR for ESPs and CCAs to instead include costs for no less than 12 months of incremental procurement incurred by the provider of last resort, upon customers’ involuntary return.
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-
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May 19, 2022 - Pioneer Community Energy Legislative and Regulatory Update Pioneer’s legislative efforts continue to focus 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 progresses, Pioneer staff will continue to update the Board and may reach out for efforts to either support or oppose specific bill measures, as needed.

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.17-09-020; R.19-11-009; R.21-
10-002
RA Reform & Implementation
Tracks
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.21-
06-001
PG&E 2019 Energy Resource
Recovery Account (ERRA)
Compliance Application; PG&E
2020 ERRA Compliance
Application; 2021 ERRA
Compliance Application
Reduce the ERRA impact on the
PCIA; increase data transparency
from the IOUs
• 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 May 19, 2022 - Pioneer Community Energy Legislative and Regulatory Update 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. An April 18, 2022 a Ruling issued regarding MPBs, requesting comments on Staff implementation plan to address RPS Voluntary Allocation Transactions in MPB Calculations; Comments filed on April 28, 2022; Replies are due May 12, 2022. IOUs and any other party are allowed to file proposals on Energy Index MPB calculation; Proposals are due May 27, 2022; Comments are due June 16, 2022; Replies are due June 30, 2022.
 Working Group 2 (Prepayment) seeks to resolve issues surrounding PCIA prepayment options, should a CCA choose to do so. On March 17, 2022 Resolution E-5134 approved protocols proposed by IOUs to administer, process, and negotiate requests to prepay PCIA obligations. A Ruling is pending.
 Working Group 3 (Portfolio Optimization) seeks to resolve issues on portfolio optimization and resource allocation. A PD 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. May 20, 2021, a Decision was issued on PCIA Cap and Portfolio Optimization. CalCCA filed an Application for Rehearing (AfR) on the PCIA Cap and Portfolio Optimization Decision. On April 7, 2022 the CPUC rejected the AfR and declined to revisit the aspects of the Decision that the AfR challenged. The Voluntary Market Offer (VAMO) process is continuing in the RPS proceeding. Per the IOUs July 26, 2021 meet and confer: IOUs submitted ALs on August 23, 2021 proposing a methodology for determining PCIA eligible RA reserved for bundled customers. All three ALs suspended for up to 120 days beginning September 22, 2021. CalCCA filed a protest on September 13, 2021. On December 20, 2021, the IOUs filed Supplemental Advice Letter answering a request from the Energy Division for further data and information. On March 8, 2022, the Proceeding was reassigned to Commissioner John Reynolds.
• Resource Adequacy:
o R.21-10-002 established a Reform Track and an Implementation Track for RA compliance year 2023; it was approved at the CPUC October 7, 2021 Business Meeting and issued on October 11, 2021.
o Reform Track (formerly known as Track 3B.2): a Revised PD and a Redlined Agenda Decision May 19, 2022 - Pioneer Community Energy Legislative and Regulatory Update were issued on July 12, 2021. The PD was adopted at the July 15, 2021 Commission Voting Meeting; the PD 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 2021 on several different topics related to the implementation of the Slice of Day proposals. A Workshop Report was released in February 2022. CalCCA convened a tiger team to address issues being considered at the Workshops. The Workshop process was intended to lead to significant changes to the RA Program starting in 2024. Through the Workshop process, additional RA reform proposals emerged from stakeholders. Early in 2022, CalCCA conducted Study Sessions for regulatory and procurement staff to review the different Slice of Day proposals. Another Study Session was held for the CalCCA Board on January 13, 2022. CalCCA filed Informal Comments on the RA Reform Workshop process on February 7, 2022; Comments only emphasized high-level principles, as the CalCCA Board was not in full agreement on which proposal to support. A Workshop was held on February 4, 2022. Comments on proposals were submitted on March 24, 2022 and Replies on April 1, 2022. A PD is expected in summer 2022. o Implementation Track: seeks to address system, flexible, and local RA capacity requirements and all other issues relating to RA procurement obligations and Program implementation details. Phase 2: is addressing Flexible Capacity Requirements, Local Capacity Requirements, modifications to the Planning Reserve Margin (PRM), and Qualifying Capacity (QC) Counting.

Proposals were filed January 21, 2022 (CalCCA did not file). A Workshop was conducted on February 4, 2022; Comments were filed on February 14, 2022, and Replies were filed on February 24, 2022 (CalCCA did not file). Energy Division recently released a Loss of Load Expectation (LOLE) and Effective Load Carrying Capacity (ELCC) Study. A Workshop was held on March 3, 2022 to discuss the study. Comments were filed on March 14, 2022, and Replies were filed on March 22, 2022. A PD is expected on May 22, 2022, and a Final Decision is expected in June 2022.
o On October 29, 2021, PG&E filed an Advice Letter 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. • 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 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 May 19, 2022 - Pioneer Community Energy Legislative and Regulatory Update 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 In the fall of 2021, former CPUC President Batjer sent a letter to PG&E regarding PG&E's Enhanced Powerline Safety Settings (EPSS) Program which deenergizes lines to prevent utility-caused wildfires. EPSS’ 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 CPUC established PSPS rules: there is no advanced warning 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 sent a letter to President Batjer in the fall of 2021 regarding EPSS issues. The letter supports the comments in Batjer’s letter to PG&E seeking to address problems with the EPSS Program and requests additional information from PG&E on EPSS incidents. BBSW sent a data request to PG&E regarding the EPSS Program in the Wildfire Mitigation Rulemaking Proceeding to get a complete picture of the scope and frequency of these outages in Pioneer territory.

PG&E recalibrated EPSS settings in the fall of 2021 to lessen the frequency of shutoffs ongoing in Pioneer territory since July 2021. However, as the 2022 fire season approaches, it is likely that they will again be recalibrated, raising similar concerns as with the Program in 2021.

Pioneer staff has been working with BBSW to get more detail in PG&E’s EPSS reports to demonstrate to our customers that we are working to address their concerns with the effects of the power shutoffs and to mitigate the effects of the shutoffs. Staff is not sure, at this time, which Proceeding in which this matter may land but will continue to monitor and engage. o On December 16, 2022, Energy Division staff issued a Draft PSPS Compendium incorporating the various CPUC guidelines and rules on PSPS matters. A Status Conference was held on January 28, 2022. On May 13, 2022, a North Coast Resiliency Workshop regarding regional resiliency from transmission level PSPS will be held.
• 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 PG&E Compliance Review of PABA and ERRA Entries 2019, Phase 2: Phase 2 seeks to address PSPS cost recovery methodology for lost revenues for 2019 and future PSPS events 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. Joint IOUs served rebuttal testimony on February 15, 2022. On April 6, 2022 an ALJ May 19, 2022 - Pioneer Community Energy Legislative and Regulatory Update Ruling requested additional information and amended the procedural schedule. On April 15, 2022, a Joint IOU Supplemental Testimony responded to the ALJ Ruling. On April 29, 2022, Intervenor Testimony in response to the IOUs’ supplemental testimony was due. Brian Dickman from New Gen will be testifying regarding the IOUs' unrealized revenue calculation for the 2019 and future PSPS events. Brian’s testimony will also seek to correct the numbers in the IOUs’ Supplemental Testimony and to note Joint CCAs’ lack of disagreement with PG&E’s methodology for calculating lost wholesale generation revenues from hydroelectric resources.

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. o PG&E Compliance Review of PABA and ERRA Entries 2020: 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. 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. On March 16, 2022 a PD was issued; a Final Decision was adopted at the April 21, 2022 Commission Voting Meeting. The Joint CCAs won on all outstanding contested issues with PG&E in the Proceeding. o PG&E Compliance Review of PABA and ERRA Entries 2021: on February 28, 2022, PG&E submitted their 2021 ERRA Compliance Application. On April 6, 2022 CalCCA and other stakeholders filed Protest to the Application; on April 18, 2022, PG&E replied to the Protests.

The next step is a scheduled June 8, 2022 virtual Prehearing Conference. • Disconnections Rulemaking:
• 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 service list of its intention to participate in the Pilot Program. Notification of Pioneer’s participation in the Pilot Program was delivered. Pilot enrollment begins 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 May 19, 2022 - Pioneer Community Energy Legislative and Regulatory Update PIPP Program, disconnections, safety, and cost recovery issues. Opening Comments on these Phase 1-A issues were due on December 13, 2021, and Replies were due January 14, 2022.

CalCCA did not file 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 were held 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. Pioneer recently submitted a PIPP Advice Letter to the CPUC. On February 4, 2022, Joint IOUs filed ALs implementing PIPP; Comments/Protests were due February 24, 2022; CalCCA did not file Comment on the Protest.

A March 25, 2022 Ruling directed IOUs to file an AMP status update addressing barriers to customers remaining in AMP Programs. A CPUC Report to the Legislature on Disconnections was expected in April.
• Outstanding issues from the closed COVID Debt Proceeding are now taking place in this Proceeding. A Working Group will be convened to file a proposal on the Community-Based Organization (CBO) Pilot Program to create a budget, payment structure and evaluation method. One CCA from each IOU service territory will participate in the Working Group.

Customers targeted for the Pilot Program will continue to be discussed in this Proceeding. On May 3, 2022, a Pilot CBO Working Group kickoff meeting was held; meetings are ongoing through July 2022. IOU AMP implementation is ongoing. Parties’ Comments on implementation issues will be raised on May 16, 2022. A CalCCA Tiger Team held an initial meeting on May 6, 2022.
• 2021 Emergency Reliability OIR:
o On October 29, 2021, a PD 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 Final 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 electrical 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 (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 PD argued that procurement should be limited to 2,000 MW and to define “reasonable” attempts May 19, 2022 - Pioneer Community Energy Legislative and Regulatory Update IOUs must make to meet emergency procurement obligations. CPUC Data Request was due on January 3, 2022, and every 4 weeks thereafter, to track status and progress of new generation and battery storage needed for summer 2022 and 2023, identify any issues that may put commercial operation dates at risk, and allow the CPUC to provide project development support where possible and as appropriate. In December 2021, SDG&E filed an Advice Letter requesting approval of emergency reliability utility owned energy storage contracts; CalCCA filed protest to the AL on December 12, 2021; SDG&E filed a response to the protest on December 28, 2021. On April 18, 2022, a Disposition Letter approved IOUs’ ALs establishing parameters and costs of the Emergency Load Reduction Program. • 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, to some degree, residential solar owners. Residential solar customers would still be able sell back power to the grid but at a significantly lower rate; they would also have to pay a grid charge based on kW usage ($40-$50/month). These changes would only apply to new solar customers and would be phased in over 4 years. Existing residential solar owners would 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 were due January 14, 2022. The PD was recently held from the CPUC Voting Meeting. The ALJ cancelled oral arguments until an unspecified date when all Commissioners can participate. A Final Decision has been held indefinitely. It is anticipated that legislation dealing with Net Billing may arise in 2022, but as of now nothing has arisen. Staff will continue to monitor and report back. On April 4, 2022, PG&E filed AL 6569-E regarding first Quarter 2022 Solar Complaint Trends Info-Only Advice Letter. On May 9, 2022, an ALJ Ruling was issued allowing parties to respond to 14 different questions on four distinct topics being considering in the Proceeding: transitional “glide path” for NEM 3.0 implementation, associated non-bypassable charges, and applicable community solar tariffs.

Comments are due June 6, 2022, and Replies are due on June 24, 2022.

PIONEER COMMUNITY ENERGY

COMMUNITY PROGRAMS ADVISORY COMMITTEE
April 27, 2022
Minutes
Entry No. 1
Heard General Administration Functions, Part I.

Call to Order
Pioneer Community Energy Community Programs Advisory Committee (“CPAC”) met in open session at 2:04 PM on April 27, 2022. 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://us06web.zoom.us/j/88322361917.

Roll Call
P A Title Name
X Chair Geoff McLennan
X Vice Chair Glen Kramer
X Scribe Bora Akyol
X Member Dennis Byrne
X Member James Curtis
X Member David Deckman
X Member Lee Kosla
X Member Glenn Krakow
X Member Brandon Reinhardt
Public Comment
There were no comments from members of the public.

Entry No. 2
Acted on the Consent Agenda as follows:

Approved minutes of the March 23, 2022 Committee meeting.

MOTION: Kramer/Deckman. Vote: 6:0:3
ROLL CALL: Akyol, Deckman, Kosla, Krakow, Kramer, McLennan.

No/Abstain: None.

Absent: Byrne, Curtis, Reinhardt.

Entry No. 3
Received and discussed presentation from MCE Senior Customer Programs Manager Brett Wiley, who informed the Committee of possible programs and initiatives for Pioneer Community Energy to utilize regarding Electric Vehicles and Electric Vehicle Chargers.

Entry No. 4
Continued discussion of Community Programs with emphasis on categorizing the programs by Near-Term (<12 months), Mid-Term (12-36 months), and Long-Term (3-5 years); and ensuring that programs are available to all customers by considering customer class (residential, commercial, agricultural), economic equity, as well as EV or solar consumer designations.

Entry No. 5
Heard General Administration Functions, Part II.

A. Closing Comments
Heard closing comments from Mark Riffey, Director of Public Affairs, Marketing, and Programs.

Director Riffey will distribute the “Barrier Chart” for May discussion preparation; the Community Programs list to add impact and savings then to designate programs by Near-Term, Mid-Term, or Long-Term. Director Riffey also reminded the Committee that program ideas can still be added to the list; and requested that the assignments would be completed and returned to him no later than May 13, 2022.

Director Riffey announced that the programs and designs will be needed well before October as the Committee’s goal is to complete the document by October, to then present recommendations to the Board of Directors and move forward with implementing approved programs beginning January 2023.

B. Adjournment
The meeting adjourned at 3:58 PM.

The next regular meeting is scheduled for May 25, 2022, at 2:00 PM.

ATTEST:

Minutes approved as presented by a majority vote
of the Community Programs Advisory Committee on
May 25, 2022.

Teresa Willock, Board Secretary
Community Programs Advisory Committee
April 27, 2022

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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
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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
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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.