to Consultant Services Agreement
EXHIBIT A
Work Order #1 – PFM Financial Advisors LLC
SCOPE OF SERVICES
The below outlines the scope of services for PFM’s financial advisory services associated with Pioneer Community Energy.
The terms and conditions of the Agreement between PIONEER, PFMFA and PFMSA are incorporated into this Scope of Services by reference.
Working with PFMSA, PFMFA will provide the following portion of the Scope of Services:
Transaction Services
• PFM will take the lead role acting as Project Manager throughout the prepay bond financing process.
Prepay Documentation and Planning
• Develop a financing plan in concert with Pioneer staff which would include recommendations as to the timing and number of series of bonds to be issued. • Review transaction legal documentation; provide suggestions, modifications and enhancements where appropriate and assist with the negotiation of terms with associated counterparties. • Coordinate with Pioneer staff and other advisors with respect to furnishing data for offering documents, it being specifically understood that PFM is not responsible for the inclusion or omission of any material in published offering documents. • In coordination with the deal team, develop credit rating presentation and coordinate with Pioneer on the overall presentation to rating agencies. • Assistance with putting together the necessary disclosure related to Pioneer (separately and together, if and where relevant) in the disclosure documents. • Arrange for the closing of the transaction including, but not limited, to bond printing, signing and final delivery.
Prepay Financial Planning and Modelling
• Advise Pioneer staff on the various financing alternatives available. • Develop alternatives related to debt transaction including evaluation of maturity schedule and cash flow requirements.
• Assist Pioneer in the procurement of ancillary services relating to debt issuance such as printing, trustee, paying agent, registrar, etc.
• Analyze financial and economic factors to determine if the issuance of prepayment bonds is appropriate.
• Provide financial modeling services and data on comparable deal pricing and deal economics. • As applicable, advise Pioneer on the condition of the bond market at the time of sale, including volume, timing considerations, competing offerings, and general economic considerations. • Assist and advise Pioneer in negotiations with investment banking groups regarding fees, pricing of the bonds and final terms of any security offering; make recommendations regarding a
to Consultant Services Agreement
proposed offering to obtain the most favorable financial terms based on existing market conditions.
FINANCIAL ADVISORY REQUIRED DISCLOSURES:
PFMFA is a registered municipal advisor with the Securities and Exchange Commission (the “SEC”) and the Municipal Securities Rulemaking Board (the “MSRB”), pursuant to the Securities Exchange Act of 1934 Rule 15Ba1-2. If PIONEER has designated PFMFA as itsindependent registered municipal advisor (“IRMA”) for purposes of SEC Rule 15Ba1-1(d)(3)(vi) (the “IRMA exemption”), then services provided pursuant to such designation shall be the services described in this Scope of Services, subject to any agreed upon limitations. Verification of independence (as is required under the IRMA exemption) shall be the responsibility of such third party seeking to rely on such IRMA exemption. PFMFA shall have the right to review and approve in advance any representation of its’s role as IRMA to PIONEER.
MSRB Rules require that municipal advisors make written disclosures to their clients of all material conflicts of interest, certain legal or disciplinary events and certain regulatory requirements. Such disclosures are provided in PFMFA’s Disclosure Statement delivered to PIONEER prior to or together with this Agreement.
Team Members:
Michael Berwanger, Managing Director
James Carbone, SMC
Woodson Powell, SMC
Other personnel to be assigned as necessary
Work Order #2 - PFM Swap Advisors LLC (as Swap Advisor and QIR) Scope of Services Transaction Services
The terms and conditions of the Agreement between PIONEER, PFMFA and PFMSA are incorporated into this Scope of Services by reference.
Working with PFMFA, PFMSA will provide the following portion of the Scope of Services:
• PFMSA will serve Pioneer as Municipal Advisor and designated Qualified Independent Representative (“QIR”) in the provision of general swap advisory services related to any swap-related communication, interaction or other discussion (“Swap Communication”) between Pioneer and Swap Dealers (as such term is defined by the Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”)). PFMSA is obligated to comply with the applicable requirements of CFTC Regulation 17 CFR 23.450(b)(1) in providing QIR services to Pioneer.
• As QIR to Pioneer, PFMSA will make available qualified professionals to participate in discussions and other interactions with Swap Dealers as Pioneer finds necessary or desirable. Additionally, PFMSA will assist Pioneer with analysis of any proposals from Swap Dealers. PFMSA may assist Pioneer with other swap related tasks such as helping write a swap policy or other related analysis upon Pioneer’s request. PFMSA will also assist Pioneer, as needed, in completing the ISDA Dodd-Frank Protocols and other matters to comply with the regulatory requirements imposed under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. i. Analyze and model alternative hedge structures and provide price indications;
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ii. Review and comment on all hedge documentation and business terms; iii. Assist in counterparty selection and developing terms for a request for bids (if desired); iv. Review competitive bids and make a recommendation for award or if so determined; v. Negotiate the pricing terms and structure with the Counterparty(s); vi. Coordinate the closing of the transaction.
SWAP ADVISORY REQUIRED DISCLOSURES
PFMSA agrees that it will not deal with itself or with any other affiliated company or individual in making purchases or sales of the Swaps or any securities pursuant to this engagement, nor will it take a long or short position in securities subject to purchase or sale in connection with the Swaps. PFMSA confirms that it has no interest in the purchase or sale of the Swaps other than as described in this Scope of Services and except for any financial or investment advisory agreement between PIONEER and PFMSA affiliates, or PFM Financial Advisors LLC.
MSRB Rules require that municipal advisors make written disclosures to its clients of all material conflicts of interest and certain legal or disciplinary events and certain regulatory requirements. Such disclosures are provided in PFMSA’s Disclosure Statement delivered to PIONEER prior to or together with the Agreement.
PFMSA is a registered municipal advisor with the SEC and the Municipal Securities Rulemaking Board (the “MSRB”), pursuant to the Securities Exchange Act of 1934 Rule 15Ba1-2. As of the date of the Agreement, PIONEER has not designated PFMSA as its independent registered municipal advisor (“IRMA”) for purposes of SEC Rule 15Ba1-1(d)(3)(vi) (the “IRMA exemption.”). PIONEER agrees not to represent that PFMSA is PIONEER’s IRMA with respect to any aspect of a municipal securities issuance or municipal financial product, without PFMSA’s prior written consent.
Team Members:
George Hu, Senior Managing Consultant
Alfred Mukunya, Director
Other personnel to be assigned as necessary
to Consultant Services Agreement
EXHIBIT B
PAYMENT FOR SERVICES RENDERED
Maximum Limit & Fee Schedule
The total amount payable for services rendered as described in Exhibit “A” shall be a flat fee, contingent upon a successful bond closing and payable from bond proceeds at closing, not to exceed $250,000.00. Consultant compensation on prepayment transactions will be allocated between PFM Financial Advisors LLC and PFM Swap Advisors LLC based upon final known distribution of work between the two parties for their respective scopes of work.
Invoices
Invoices shall include an itemized list of work performed including date, hours worked, services provided, and personnel who performed the services. Work performed by Consultant will be subject to final acceptance by Pioneer.
Submit all invoices to: Pioneer Community Energy
Attn: Eric Acedo
[email protected]
2510 Warren Drive, Suite B
Rocklin, CA 95677
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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
EXHIBIT D
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, in connection with or arising directly or indirectly out of, the negligent performance 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 CONSULTANT'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 CONSULTANT'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, in 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 the Consultant 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”.
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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, employees, agents or volunteers, which might arise by reason of payment under such policy in connection with performance under this agreement by the CONSULTANT.
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 CONSULTANT, providing insurance for bodily injury liability and property damage liability for the limits of liability indicated below and including coverage for:
(1) Contractual liability insuring the obligations assumed by CONSULTANT 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:
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(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) aggregate for Products Completed Operations →Two million dollars ($2,000,000) General Aggregate
(2) The insurance coverage provided by CONSULTANT 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 the Consultant 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 non-owned and hired automobiles.
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.
to Consultant Services Agreement
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 $5,000,000 US per occurrence.
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 - CONSULTANT 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 CONSULTANT’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.
Staff Report – Item 5
To: The Governing Board
From: Don Eckert, Executive Director
Item 5: Conducting Governing Board Meetings at Member Agency Locations Date: 6/16/2022
ACTION REQUESTED
Provide direction to staff if there is interest to conduct Pioneer Community Energy (“Pioneer”) Board meetings at member agency locations and subsequently recommend locations and times.
RECOMMENDATION
There is no recommendation with this report.
BACKGROUND
At the March 17, 2022, Governing Board meeting, the Board discussed the issue of continuing meetings by teleconferencing and considered other meeting venue options. During the discussion, Board members stated interest in conducting board meetings at member agency locations.
ANALYSIS & DISCUSSION
Many of Pioneer’s member agencies are conducting their council/board meetings in-person or through a hybrid approach of in-person and remote. If there is interest in conducting board meetings at member agency locations, staff suggest meeting at the City of Auburn, County of Placer and County of El Dorado Board of Supervisor Chambers between September and December of this year.
This can be a pilot and if successful, staff can dedicate three-four board meetings per year at a member agency location. By providing direction in June, staff will have enough time to plan for the administrative and technical coordination.
STRATEGIC PLAN
The recommendation supports the Local Engagement strategic priority.
FISCAL IMPACT
Conducting board meetings at member agency locations could result in rental fees and capital equipment purchases. The exact costs are not known but should have minimal impact to the budget.
ATTACHMENTS
There are no attachments with this report.
fJONEER
COMMUNITY ENERGY
Staff Report – Item IV-B
To: The Governing Board
From: Don Eckert, Executive Director
Item IV-B: Executive Director Report
Date: 6/16/2022
REPORT
Personnel
The interview process has begun for the Power Contracts Manager position. Staff expects an offer to be extended by early July.
Public Safety Power Shutoff (“PSPS”) Event
There are no PSPS events to report.
Executive Director Agreements Executed
ACC Business, Internet Services, amendment to existing contract for an additional $9,800 per year to improve data transfer capabilities.
El Dorado County Fair
Pioneer will be participating with a booth at the El Dorado County Fair from June 16th through June 19th. We look forward to being part of the fair and please visit us.
Net Energy Metering (“NEM”)
Pioneer compensates NEM customers with excess generation at a premium to PG&E. We are excited to report this year’s annual NEM cash-out process resulted in 4,300 customers compensated a total of $455,000 with another 2,400 customers receiving $29,000 in bill credits due to their balance being less than $25. A press release was posted on June 10th.
Pacific Gas & Electric (“PG&E”) Rates Update
PG&E recently updated their rate schedules effective June 1st. Pioneer is pleased to report that our competitive position slightly improved. Residential (“E-1”) customers on the 2017 Power Charge Indifference Adjustment (“PCIA”) vintage were at a 10% discount to PG&E generation rates before the change and now are at a 10.3% discount and E-1 customers on the 2021 PCIA vintage which applies to all of City of Placerville and El Dorado County customers were at a 6% discount before the change and now are at a 6.5% discount. The following table illustrates the change:
Mar-May June -
Placer (2017 PCIA Vintage) 10.0% 10.3%
El Dorado (2021 PCIA Vintage) 6.0% 6.5%
Pioneer Discount to PG&E for E-1 (Residential) Customers fJONEER
COMMUNITY ENERGY
Agenda Item: IV-B Agenda Date: 6/16/2022
Supplier Diversity
Each year we file a supplier diversity report (GO156) with the California Public Utilities Commission (“CPUC”) to review the previous year’s efforts with regards to diversity in our procurement. Staff discussed our most recently filed report for 2021 activity with the CPUC and were notified that Pioneer is ranked second amongst all CCA’s for the most diverse spending in non-power procurement. Other highlights of the report include:
• 50% of Pioneer’s suppliers (both power and non-power) were regionally sourced and 70% of all suppliers were California companies
• Local power supply activity in 2021 included:
o $4.3 million sourced from Placer County Water Agency
o $0.5 million sourced from El Dorado Irrigation District o $0.1 million sourced from Sierra Pacific Industries with biomass Renewable Energy Credits Pioneer remains committed to strengthening its diversity efforts in procurement and focusing on procurement from regional and state businesses.
Update on Legislation Impacting the Brown Act
AB 1944 amended on May 25:
https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202120220AB1944 Summary (excerpt from May 25 floor analysis): Allows, until January 1, 2030, members of a legislative body of a local agency to use teleconferencing without identifying each teleconference location in the notice and agenda of the meeting or proceeding, and without making each teleconference location accessible to the public, under specified conditions.
Major Provisions
1) Provides that, if a member of a legislative body elects to teleconference from a location that is not a public place, the legislative body shall be exempt from identifying the address of the location in the notice and agenda and from having the location be accessible to the public if both of the following circumstances are present:
a) The legislative body holds a meeting and has determined, by majority vote, that members will not be required to identify the address of any private location from which the member elects to teleconference. A determination described by this provision shall remain applicable to the legislative body until the legislative body votes otherwise.
b) At least a quorum of members of the legislative body participates from a single physical location that is clearly identified on the agenda, open to the public, and situated within the boundaries of the territory over which the local agency has jurisdiction. 2) Provides that, if a legislative body elects to use teleconferencing as authorized by this bill, it shall provide both of the following:
a) A video stream accessible to members of the public.
b) An option for members of the public to address the body remotely during the public comment period through an audio-visual or call-in option. Requires, if the legislative body of a local agency elects to use teleconferencing, the agenda to identify any member of the legislative body that will participate in the meeting remotely. If a member of the legislative body elects to participate in the meeting remotely after the agenda is posted, an updated agenda shall be posted. In the time between the start of the meeting and 72 hours before a regular meeting, as specified, and 24 hours before a special meeting, as specified, a legislative body shall only update the agenda to reflect the members participating in the meeting remotely.
3) Contains a sunset date of January 1, 2030.
AB 2449 amended on May 23:
https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202120220AB2449 Summary (excerpt from May 23 floor analysis): Allows, until January 1, 2028, members of a legislative body of a local agency to use teleconferencing without identifying each teleconference location in the notice and agenda of the meeting, and without making each teleconference location accessible to the public, under specified conditions.
Agenda Item: IV-B Agenda Date: 6/16/2022
Major Provisions
1) Allows a local agency to use teleconferencing without identifying each teleconference location in the notice and agenda of the meeting or proceeding and making each teleconference location accessible to the public if, during the teleconference meeting, at least a quorum of the members of the legislative body participates in person from a singular physical location clearly identified on the agenda, which location shall be open to the public and situated within the boundaries of the territory over which the local agency exercises jurisdiction. 2) Requires, in order to utilize the authority outlined above, the legislative body to comply with a number of requirements, including:
a) Providing at least one of the following as a means by which the public may remotely hear and visually observe the meeting, and remotely address the legislative body: a two-way audio-visual platform; or, a two-way telephonic service and a live webcasting of the meeting. b) Giving notice of the means by which members of the public may access the meeting and offer public comment, and identifying in the agenda an opportunity for all persons to attend and address the legislative body directly via a call-in option, an internet-based service option, and at the in-person location of the meeting.
c) Taking no further action in the event of specified disruptions. d) Not requiring public comments to be submitted in advance of the meeting, and providing an opportunity for the public to address the legislative body and offer comment in real time, as specified. e) Having and implementing a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, as specified. 3) Provides that a member of the legislative body shall only participate in a meeting remotely pursuant to this bill's provisions if all of the following requirements are met:
a) One of the following circumstances applies:
i) The agenda identifies that the member will participate remotely and provides a brief general description of the circumstances relating to their need to appear remotely, as specified. ii) The circumstances relating to the member's need to participate remotely arose after the agenda was posted and those circumstances are publicly disclosed at the meeting before any action is taken.
b) The member shall publicly disclose at the meeting before any action is taken whether any other individuals aged 18 or older are present with the member, and the nature of the member's relationship with any such individual, as specified.
c) The member shall participate through both audio and visual technology. 4) Provides that the provisions of this bill shall not serve as a means for any member to participate in meetings of the legislative body solely by teleconference from a remote location for a period of three consecutive months.
5) Clarifies that a legislative body must comply with all of the following if it elects to use teleconferencing:
a) The teleconferenced meetings shall be conducted in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the body. b) The legislative body must give notice of the meeting and post agendas as otherwise required by the Ralph M. Brown Act (Brown Act).
c) The legislative body shall allow members of the public to access the meeting and the agenda shall provide an opportunity for members of the public to address the legislative body directly, as specified. 6) Contains a sunset date of January 1, 2028
Strategic Plan Progress Report
Please see attachment five for the quarterly strategic plan report.
Executive Director Power Supply Contracts Executed
There is no activity to report for the month.
Presentations and Relevant Meetings attended by the Executive Director
1. Participated n CalCCA Weekly/Monthly Board meetings
Agenda Item: IV-B Agenda Date: 6/16/2022
2. Participated in several discussions with legislators providing updates on Pioneer and bills important to Pioneer including:
a. Assemblyman Kiley’s Office
b. Assemblyman Bigelow’s Office
c. Senator Nielson’s Office
3. Participated in interview with Barry Stigers of KAHI
ATTACHMENTS
1. Agenda Planning Document
2. Monthly Legislative and Regulatory Update
3. Monthly Marketing and Public Outreach Report
4. May 2022 Minutes from Community Advisory Programs Committee
5. Quarterly Strategic Plan Progress Report
Agenda Planning Document – Pioneer Community Energy Updated 6/10/2022 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
JUNE 16, 2022
2:00 PM CLOSED SESSION
3:00 PM REGULAR SESSION
(Post Agenda: June 10)
JULY 21, 2022
3:00 PM
(Post Agenda: July 15)
August Recess – No Meeting
SEPTEMBER 15, 2022
3:00 PM
(Post Agenda: September 9)
IN THE FUTURE
General Function I Agenda Review Agenda Review Agenda Review Consent
1a
Approve meeting minutes
MAY 19, 2022 (Action - Eckert) Teresa
Approve meeting minutes
JUN 16, 2022 (Action - Eckert) Teresa
Approve meeting minutes
JUL 21, 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
*more than 30 days from June 16 – requires
a new determination
MONTHLY – reaffirm Pioneer AB 361
Remote Meeting Continuation Findings
& receive Leg/Reg update (Action –
Eckert) General Counsel
*more than 30 days from July 21 – requires a
new determination
RE: AB 361 Remote Meeting Continuation
Findings
1c Receive Draft Financials: APR 2022
(Koehn)
Receive Draft Financials: MAY 2022
(Koehn)
Receive Draft Financials: JUN 2022
(Koehn)
1d
1e
Contracts for Renewal:
Richards Watson Gershon
Hall Energy Law
Conflict of Interest Code - Biennial
Amendments re: designated filers
(Action – Eckert)
Regular
2 RES approving FY 2022-23
Recommended Budget (Action –
Koehn)
Status Update re: Expansion activities
(Discussion – Eckert)
Expansion-Impact Assessment results
(Action – Eckert)
(TBD) mPOWER report
(TBD) CPAC report
3 Employee Salary Schedule and
Benefit Modifications (Action –
Koehn)
RES authorizing CCCFA Membership for
Power Prepay (Action – Koehn)
NEM 3.0 Update (Discussion - x) (TBD) Data Flow presentation (TBD) AG Rate Changes
(TBD) PG&E Rate Changes
4 RES authorizing professional services
for Power Prepay (Action – Koehn)
Biomass Projects Update (Discussion – Kang)(OCT) JPA Amendment re: Expansion (approve issuance of a 30-day notice)
(OCT) IRP approval (Kang)
5 Board Meeting Locations for Sept-Dec
2022 (Discussion – Eckert)
El Dorado/Placerville “Lessons
Learned” Report (Discussion - Riffey)
(TBD) Presentation by Biomass Producer,
Bayview (Director Hidahl)
6 Key Accounts Business Plan (Discussion -Riffey)
General Function II
IV-B
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 – JUNE;
Executive Director’s Report
Reports: Leg/Reg; Community Engagement;
Q3 Strategic Plan update; CPAC minutes –
JULY;
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 (2:00) Closed
Session
Conference with Labor Negotiators -
GC §54957.6
(TBD) CS re: Executive Director review
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
June 16, 2022 - Pioneer Community Energy Legislative and Regulatory Update Pioneer Community Energy Legislative and Regulatory Update June 16, 2022
Legislative Affairs
California Legislature Update
The California Legislature has been very active with ongoing Committee hearings, bill amendments and negotiations among Legislators, staff, and stakeholders. May 27, 2022 marked the final day for each house to pass bills introduced in that house. Committee meetings resumed on May 31, 2022. Governor Newsom recently released the May budget revise which contained a $49 billion budget surplus and included an $8 billion proposal for energy reliability. The majority of the energy proposal would appropriate $4 billion to the State Department of Water Resources to procure additional resources for use in energy emergencies. The state budget must be passed by June 15, 2022, but much of the energy proposal will be dealt with later in the legislative session. The Legislature will begin Summer Recess on July 1, 2022 and will reconvene on August 1, 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 engagement with CalCCA, individual CCAs, and other stakeholders developing legislative and policy strategies for the remaining 2022 session and beyond. Pioneer staff is also independently engaged 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. Pioneer leadership and staff met with Senator Nielsen’s staff, with a pop-in by Senator Nielsen himself, on Thursday, June 2, 2022, and met with Assemblymember Bigelow’s staff on Friday, June 3, 2022. Both meetings were highly productive and encouraging as Pioneer staff introduced Pioneer and its general legislative priorities and those specific to this legislative session. The main area of discussion was biomass and supporting biomass. Additionally, staff discussed Pioneer’s top three priority bills: AB 2878 (Aguiar-Curry), SB 1109 (Caballero), and SB 881 (Min). The meetings were successful and laid the foundations for relationships with Senator Nielsen and Assemblymember Bigelow’s offices. Senator Nielsen is terming-out at the end of the year, but he will remain active in the biomass space and has informed Pioneer staff that he is available to help support our efforts. Assemblymember Bigelow’s staff indicated his support for biomass legislation, and wildfire and forest management issues.
Pioneer staff looks forward to working with his office moving forward. Additional meetings will be scheduled with Pioneer’s Legislative Representatives in the coming weeks. 10NEER
COMMUNITY ENERGY
June 16, 2022 - Pioneer Community Energy Legislative and Regulatory Update Position letters submitted on active bill measures:
AB 1956 (Mathis) – Solid waste: woody biomass: collection and conversion.
Bill was held under submission in Assembly Natural Resources Committee 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.
Bill is in Senate Rules Committee, awaiting Committee assignment 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 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.
Bill remains in Senate Utilities, Energy, and Communications Committee 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.
Bill referred to Assembly Utilities and Energy Committee, awaiting hearing 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.
Bill is in the Assembly, held at desk
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 -
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June 16, 2022 - Pioneer Community Energy Legislative and Regulatory Update 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.
Bill was held under submission in Senate Appropriations Committee, effectively dead 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).
Bill did not make it out of Senate Utilities, Energy, and Communications Committee, effectively dead 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.
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
Resource Adequacy (RA) Reform &
Implementation Tracks
Refine the current RA Program
construct; reduce volatility of RA
prices; increase RA procurement
availability and grid reliability
-
June 16, 2022 - Pioneer Community Energy Legislative and Regulatory Update R.18-12-005 Utility De-energization/Public
Safety Power Shutoffs (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; A.22-05-029
PG&E 2019 Energy Resource
Recovery Account (ERRA)
Compliance Application; PG&E
2020 ERRA Compliance
Application; 2021 ERRA
Compliance Application; 2022
ERRA Compliance Application;
2023 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 2 of the Proceeding created three Working Groups to formulate processes to address additional PCIA proposals.
Working Group 1 (Benchmark Issues) sought to address outstanding benchmark issues and the benchmark true-up. An April 18, 2022 Ruling was issued regarding Market Price Benchmark (MPBs), requesting comments on Staff implementation plan to address RPS Voluntary Allocation Transactions in MPB Calculations; Comments filed on April 28, 2022; Replies were due May 12, 2022. IOUs and any other party were allowed to file proposals on Energy Index MPB calculation; Proposals were 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) sought to resolve issues on portfolio optimization and resource allocation. A Proposed Decision (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 focusing on addressing the Working Group 3 recommendations that the PD disregarded or pushed to a later date. 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. On May 11, 2022, SJCE and 3CE filed a Petition for Writ of Review with the California 6th Court of Appeals challenging the CPUC PCIA Working Group 3 Decision; June 16, 2022 - Pioneer Community Energy Legislative and Regulatory Update this will probably be dealt with in the fall. The petition’s argument is that the CPUC treated this proceeding as quasi-legislative, when it was a rate setting proceeding; the Petition also argues that the CPUC made legal error and did not consider the Working Group 3 reports. A Ruling is pending. The Voluntary Allocation Market Offer (VAMO) process is continuing in the RPS proceeding. On July 8, 2022, Opening Comments on the Joint IOU Energy Index MPB Proposal are due; Replies are due on July 22, 2022. 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.
o Reform Track (formerly known as Track 3B.2): Slice of Day proposals and implementation topics were discussed through five workshops conducted in the fall of 2021 through the end of 2021. A Workshop Report was released in February 2022. The Workshop process was intended to lead to significant changes to the RA Program starting in 2024. A recent PD adopted Local Capacity Obligations for 2023-2025, Flexible Capacity Obligations for 2023, and Reform Track Framework; Comments are due June 9, 2022, and Reply Comments are due June 14, 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 Final Decision is expected in June 2022.
• Deenergization/PSPS:
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 supported the comments in Batjer’s letter to PG&E seeking to address problems with the EPSS Program and requested additional information from PG&E in EPSS incident reports. 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 begins, it is likely that EPSS settings will again be recalibrated, raising similar concerns as with the Program in 2021. o Pioneer staff has been working with BBSW to get more detail in PG&E’s EPSS reports to demonstrate to our customers that Pioneer is 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 June 16, 2022 - Pioneer Community Energy Legislative and Regulatory Update this time, which Proceeding in which this matter may land but will continue to monitor and engage. Pioneer staff is leading an effort among Joint CCAs asking the CPUC for the consideration of Fast-Trip (EPSS) issues in the deenergization Proceeding. Pioneer anticipates filing the motion in the very near-term.
• 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. At the end of March 2022, Brian Dickman from New Gen testified regarding the IOUs' unrealized revenue calculation for the 2019 and future PSPS events. Brian’s testimony also sought 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; Reply Briefs are due June 17, 2022. Pioneer and Joint CCAs are in a good place on the methodology to include wholesale generation revenues, but this may not be applied to 2019 events – it has been an uphill battle on this issue. o PG&E Compliance Review of PABA and ERRA Entries 2020: on March 16, 2022, a PD was issued resolving Phase 1 issues; 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. o 2022 PG&E ERRA Forecast: On March 31, 2022, PG&E filed its 2023 ERRA Forecast Application.
On May 16, 2022, PG&E filed AL 6596-E notifying the CPUC that PG&E’s PABA balances had surpassed the 4% trigger amount. When the 4% Trigger threshold has been met, and it does not appear it will self-correct, PG&E is required to file an expedited application to increase bundled rates (placing CCA rates in a more competitive position). PG&E envisions a $107 million under collection at year end. A large under collection means increased bundled generation rates. This, however, is likely to change in the next six months. o 2023 PG&E ERRA Forecast: PG&E filed their annual Forecast Application on May 31, 2022, forecasting its electric procurement cost revenue requirement and electricity sales for 2023.
Protests/Responses are due 30 days after the Application has been noticed by the CPUC.
Forecasted revenue requirements will become effective January 1, 2023. • Disconnections Rulemaking:
• A second arrearages forgiveness Program, Percentage of Income Payment Plan (PIPP), was created to address surfacing issues regarding cost collection and other disputed issues. A PD June 16, 2022 - Pioneer Community Energy Legislative and Regulatory Update was issued on September 2, 2021 authorizing the Public Purpose Program Charge (PPPC) PIPP Pilot Program inclusive of CCAs, with cost recovery coming through the PPPC. A Final Decision was voted out at the October 7, 2021 CPUC Business meeting. IOUs began PIPP Implementation Working Group Meetings at the end of 2021 and the beginning of 2022. • Outstanding issues from the closed COVID Debt Proceeding are now taking place in this Proceeding. A Working Group was 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 is participating 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 Arrearage Management Plan (AMP) implementation is ongoing. Parties’ Comments on implementation issues were raised on May 16, 2022. A CalCCA Tiger Team held an initial meeting on May 6, 2022. Meetings are ongoing. • 2021 Emergency Reliability OIR:
o On October 29, 2021, a PD directed the IOUs to take action to ensure reliability during extreme weather in summer 2022 and 2023. The PD adopted several supply and demand-side requirements to ensure adequate electrical power in the event of extreme weather during times of greatest need in summers 2022 and 2023. The PD directed the IOUs to procure a total of between 2,000 and 3,000 MW of supply-side resources and expanded the procurement role of the Central Procurement Entities (CPEs) but did not impose penalties for new procurement if reasonable efforts are demonstrated to meet the procurement targets. The PD also expanded the Emergency Load Reduction Program (ELRP) which increases incentives for customers to reduce electrical usage during times when the grid is most vulnerable. The proposal also expanded 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 IOUs must make to meet emergency procurement obligations. o On May 16, 2022, PG&E filed an AL regarding efforts to prioritize generator interconnections to meet grid reliability initiatives. On May 24, 2022, PG&E filed AL 6604-E seeking approval of 12 short-term agreements to procure incremental capacity to serve at peak and net peak to prepare for potential extreme weather events in summer of 2022. PG&E will be procuring for all customers in its service territory and is requesting to pass on all costs to all benefitting customers through the Cost Allocation Mechanism (CAM). CalCCA is discussing potential comments in opposition to the AL.
• 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. The objective is to increase equity and eliminate cost shifts onto lower income customers who are subsidizing, to some degree, residential solar owners. 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” June 16, 2022 - Pioneer Community Energy Legislative and Regulatory Update for NEM 3.0 implementation, associated non-bypassable charges, and applicable community solar tariffs. Comments are due June 10, 2022, and Replies are due on June 24, 2022. A group of Joint CCAs will be filing Opening Comments. This ALJ Ruling reopened the Proceeding to address outstanding NEM matters.
6/10/2022
1 Customer Engagement Update
May 2022 Board Meeting
Types of Engagement
Getting to know our customers: • Phone Calls & Emails
• In Person Customer Site Visits
• Event Attendance & Sponsorship
• Community Presentations
• Key External Stakeholder Meetings
• Social Media
• Paid Media
• Earned Media
1 2
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6/10/2022
2 Direct Customer Engagement
In Person Customer Visits
• El Dorado County
• Sierra at Tahoe
• Sugar Bowl
• City of Lincoln
Phone Calls/Emails
• 899 customer calls (call
center)
• 87% satisfied with customer
service
• 32 emails (call center)
• 64 team calls
• 13 bill analysis
Since January 2022
Activity directly related to staff engagement
100 – new customer enrollments
30 – customer re-enrollments
Key External Stakeholder Meetings
• El Dorado County Community
Meeting
• Regional Economic Development
Stakeholder Call
• Foresthill Chamber of Commerce
• El Dorado County Chamber
• Colfax Chamber
• Auburn Greater Area Economic
Development Group
• Lincoln Chamber Government
Affairs
3 4 ttl P::: < ttl P::: :
6/10/2022
3 Social Media
Website
• 3,501 Site Visits
• 25,900 new users
since January 2022
Facebook
• 650 Followers
• 3 Items Posted
LinkedIn
• 178 Followers
• 5 Items Posted
• 1,100 Page Impressions
* Social Media activity was
low due to focus on new
website launch
Other Media
Earned Media
• 1 - Total # of Stories
• 9,486 - Total Audience
• $183 - Total estimated value
Paid Media
• Due to the upcoming
communication campaign,
there was no paid media
during the month of May
5 6 ttl P::: < ttl P::: :
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4 Key Metrics
Green100
• 239 - Total Participants
• 3 - Opt Up
• 0 - Opt Down
Customer Counts
• 84.7% - Retention
• 2,250 - New Customers
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PIONEER COMMUNITY ENERGY
COMMUNITY PROGRAMS ADVISORY COMMITTEE
May 25, 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 2:02 PM on May 25, 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 James Curtis
X Member David Deckman
X Member Lee Kosla
X Member Glenn Krakow
X Member Brandon Reinhardt
Director Riffey reported that a resignation had been received from Member Byrne effective May 2, 2022.
With eight remaining members, a quorum requires five or more members to be present.
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 April 27, 2022 Committee meeting.
MOTION: Akyol/Kramer. Vote: 7:0:1
ROLL CALL: Akyol, Deckman, Kosla, Krakow, Kramer, McLennan, Reinhardt.
No/Abstain: None.
Absent: Curtis.
Entry No. 3
Received and discussed an Energy Procurement overview from Sam Kang, Chief Operating Officer at Pioneer Community Energy (“Pioneer”).
Energy Procurement makes up more than 90% of Pioneer’s costs.
Community Choice Aggregates (CCAs) like Pioneer exist for two main reasons: 1) for procuring energy, originally established to procure more renewable energy than incumbent IOUs; and 2) for programs.
Programs are an important part of Pioneer and that is why we have the Community Programs Advisory Committee.
Entry No. 4
Continued discussion of Community Programs by 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 electric vehicle or solar consumer designations.
Reviewed designated programs as near-term/mid-term. Near-term programs to launch within 12 months pending availability of funding.
Moved the small scale Heat Pump pilot program to the Near-term category which would help with greenhouse gas (GHG) emission reduction and create opportunities for electrification – similar to EV & at Home Level 2 Chargers.
Member Akyol excused himself from the meeting at 3:00 PM.
Expressed concern regarding current labor and production forces and how that would affect the implementation of programs involving appliances and cooking equipment.
Discussed General Education and Workforce Development options throughout the Pioneer territory, adding high school trade programs along with the community college student opportunities.
Discussed Electrification-Ready (E-Ready) for new construction and affordable housing as an incentive for developers and builders; and encourage communities to adopt Stretch Codes which are incentivized.
It was determined that for Pioneer to encourage cities and counties to take action would only be by Board direction, but the Committee could incorporate this suggestion in their recommendation to the Board.
For non-residential, these types of programs may be utilized more for business remodel or when repairs are needed. Also considered that for small businesses, the business owner may not own the building.
Referenced the “parking lot” items which are now on an indefinite hold due needing more research and how to meet requirements.
Discussed benefit of load shifting for residential Renewable Portfolio, such as energy generated by solar; in that by reducing the load, the peak demand is reduced and results in the benefit for Pioneer as the energy provider.
Entry No. 5
Discussed Barriers of Entry to each of the customer categories. First identified external stakeholders and the barriers preventing participation in any program. Now, to establish how Pioneer could reduce or eliminate those barriers. Some barriers exist across the board, such as equipment and installation costs. Others are specific to the stakeholder group.
For Pioneer, there are adequate staffing and funding barriers that could be reduced or eliminated by hiring staff, hiring third party contractors for direct install programs, apply for funding and various grants, and utilize internships.
For Single Family Home and “granny cottage” customers, barriers could be equipment and installation costs, equipment selection, and solar building codes could be reduced or eliminated by rebates and incentives, education, and incentives for builders to go beyond Title 24 building code.
For Multi Family Home customers, barriers could be equipment and installation costs, equipment selection, ownership vs. tenant, and difficult to assign benefits to one tenant (EV and Solar) could be reduced or eliminated by rebates and incentives, education, incentives for builders to go beyond Title 24 building code, other direct install programs, and discuss shared benefits with PG&E.
Community Programs Advisory Committee
May 25, 2022
For Income Qualified customers of single family and multi family homes, barriers could be equipment and installation costs, equipment selection, availability of funds, and other factors such as age, medical condition could be reduced or eliminated by rebates and incentives, education, direct install programs, and focus programs on low-cost items.
For Mobile Home customers, barriers could be equipment and installation costs, equipment selection, and difficult to assign benefits to one tenant (EV and Solar) could be reduced or eliminated by rebates and incentives and education.
For Small to Medium Business (SMB), barriers could be customer awareness, equipment and installation costs, equipment selection, ownership vs. Tenant, lack of focus on long term solutions, and conversion from traditional natural gas to electric could be reduced or eliminated by targeted communication, rebates and incentives, education, targeting the building owners and landlords, focus on programs with short payback, and working with established networks such as trade groups and chambers of commerce.
For Large Key Account customers, barriers could be utility significance, personal connection, unique application, and may be related to larger projects could be reduced or eliminated by customer rebates and incentives, and contact from the Key Account Manager.
For Agriculture customers, barriers could be equipment availability, equipment and installation cost, agricultural electrical rates, conversion from traditional diesel to electric, and uncertainty of water adequacy could be reduced or eliminated by vendor and sales team connection and work through the Farm Bureau.
For Municipal and School customers, barriers could be short off-season, adequate funding, adequate facilities and maintenance teams, equipment availability, and equipment and installation costs could be reduced or eliminated by program launch planning, early vendor/contractor support for planning and installation, and possible additional staffing.
For PG&E, barriers could be the investment of time.
For Equipment Vendors and Sales Representatives, barriers could be limited potential customers and supply chain could be reduced or eliminated by offering upstream/mid-stream rebates and identifying product and supply chain issues and delay the program launch.
For Equipment Installers and Contractors, barriers could be technology knowledge, supply chain, staffing limitations, and reliable installers and contractors could be reduced or eliminated by offering upstream/mid-stream rebates and identifying product and supply chain issues, certifying installers and contractors, and contractor training.
For Disabled Individuals, barriers could be reduced or eliminated by providing paper documents for website items and communication regarding additional solutions available on the Pioneer website enabling enlarged fonts and audible material.
Entry No. 6
Heard General Administration Functions, Part II.
A. Closing Comments
Heard closing comments from Mark Riffey, Director of Public Affairs, Marketing, and Programs.
Director Riffey informed the Committee that the special speaker for June would be from the California Storage and Solar Association regarding back up solar and batteries; and, to remit any agenda item requests for the next meeting to his email.
Community Programs Advisory Committee
May 25, 2022
Vice Chair Kramer requested the updated Barriers document and Director Riffey confirmed it would be distributed to the Committee and to continue remittance of items to the Programs and Barriers documents.
Vice Chair Kramer informed the Committee that he would not be attendance at the June meeting.
Director Riffey expressed appreciation for Chief Operating Officer Kang and the Committee for their participation.
B. Adjournment
The meeting adjourned at 4:04 PM.
The next regular meeting is scheduled for June 22, 2022, at 2:00 PM.
ATTEST:
Minutes approved as presented by a majority vote
of the Community Programs Advisory Committee on
June 22, 2022.
Teresa Willock, Board Secretary
Community Programs Advisory Committee
May 25, 2022
1 Pioneer Community Energy
Quarterly Strategic Plan Progress Report
June 2022
Objective Description Status
Prior
Quarter Comments
1.1 Reinforce community listening channels by increasing engagement with current, returning, and future customers. Achieve a 92% participation rate by Dec. 31, 2023 With the new website launch behind us, the focus returns to improving the participation rate
1.2 Residents and businesses are the backbone of our communities. Pioneer will work to strengthen comprehensive relationships, which includes engaging the top 20 commercial and industrial customers in each county we serve by June 30, 2022
Key Accounts Manager was hired late March 2022 with a priority of reaching out to our Member Agency's and Large Commercial and Industrial Accounts through the remainder of the year
1.3 Launch a Community Program Advisory Committee ("CPAC") in 2021 The Committee launch in late 2021. Recommendation is expected to be delivered to the Board by end of 2022.
1.4 Pioneer staff will increase the organization's presence within the communities we serve by participation in local events
Many events were limited in 2021 due to the pandemic. With most events returning, Pioneer is looking forward to participating in community events such as the El Dorado County Fair in mid-June
1.5 Grow engagement and reach of communications channels and ensure all platforms are providing engagement opportunities for residents and local businesses a. In 2022, increase social media presence and following on Facebook by 400% The improved social media presence has maintained through the 2nd quarter b. Conduct an annual customer survey in winter 2022 Survey is expected to be launched end of year c. Increase presence in El Dorado County through targeted social media and digital ad buys The opt-out for unincorporated El Dorado County is higher than expected. Staff will be working with the Board on improvements to our messaging
STRATEGIC PRIORITY: LOCAL ENGAGEMENT
2 Objective Description Status
Prior
Quarter Comments
2.1 Maintain the trust and responsiveness Pioneer customers expect in their service experiences a. Ensure quick response times to customer service inquiries Customer service is important for all of Pioneer's staff. Staff recently implemented procedure changes to improve response times.
b. Monitor and evaluate Calpine call center and billing services performance quarterly The most recent review with Calpine resulted in all customer service metrics being achieved
2.2 Keep Pioneer's rates competitive through policies and programs that ensure stability and a choice in power
a. Commit to a policy that strengthens Pioneer's response to rate volatility in the energy market by Dec. 31, 2021
Rate changes in March resulted in Pioneer customers enjoying a 10% discount to PG&E's generation rate for customers on the 2017 PCIA vintage (most of Placer County) and a 6% discount for customers on the 2021 PCIA vintage (El Dorado County and City of Placerville).
PG&E updated their rates in June 2022 and our competitive rate position slightly improved. b. Develop cost-effective, grid-resilient product to increase access for the business community members interested in joining Pioneer Communications continue to happen between staff, project developers and potential customers
2.3 Prioritize community programs and develop new service programs by Dec. 31, 2022 a. Begin exploring economic development rates to incentivize businesses to move to the territory, using subsidized rates that benefit the community Work towards this will begin as we approach our cash reserves target. However, our current discounts to PG&E is a bridge towards attracting businesses until economic development rates are implemented
b. Explore rate programs that incentive local solar and biomass project development Timing of implementing these programs is contingent on the recommendations of the CPAC and California Public Utilities Commission ("CPUC") rollout of AB843 procedures STRATEGIC PRIORITY: QUALITY IN SERVICE
Objective Description Status
Prior
Quarter Comments
3.1 Conduct a biennial compensation and benefits study to ensure competitive wages and enhance employee retention
The biennial compensation and benefits study was completed this quarter with results of the study reflected in the FY 2022-23 recommended budget
3.2 Uphold Pioneer's company culture through internal communication channels and team engagement opportunities
a. Conduct an annual all-staff survey
generation rate for customers on the 2017 PCIA vintage (most of Placer County) and a 6% discount for customers on the 2021 PCIA vintage (El Dorado County and City of Placerville).
PG&E updated their rates in June 2022 and our competitive rate position slightly improved. b. Lead quarterly team-building activities
Staff celebrated the success of the expansion this quarter and have an activity planned for early July
c. Invest in employee professional development pathways Staff is planning to rollout a Tuition/Professional Development reimbursement policy near the start of the fiscal year
STRATEGIC PRIORITY: EMPLOYER OF CHOICE
3 Objective Description Status
Prior
Quarter Comments
4.1 Continue grid resiliency efforts to mitigate Public Safety Power Shutoff ("PSPS") events in our communities
Staff is staying diligent working with PG&E to ensure our customers are informed and prepared for the 2022 wildfire season
4.2 Position our business portfolio to be capable of diversification through the development of one biomass project
Staff has signed an MOU with a project developer for a biomass project at the Western Placer Waste Management Authority and a tour of a potential biomass site in Colfax will occur in late June
4.3 Diversify Pioneer's energy procurement by issuing requests for proposals to potential partners to procure energy at "least cost, best fit" for the portfolio Staff completed negotiations for a solar + storage long-term power purchase agreement ("PPA") with NextEra Energy this quarter. Staff are currently in negotiations for a long-term PPA with a biomass project.
4.4 Target diversification of Pioneer's power source portfolio through procurement with regional suppliers
Pioneer prioritizes power supply from regional projects when the power is available and it makes economic sense. The long-term PPA with El Dorado Irrigation District is a recent example with local biomass projects in the works for 2022
4.5 Maintain zero customer data breach incidents through investment in information technology resources
a. Conduct annual IT cybersecurity audits and improve employee cybersecurity awareness through training and consistent messaging
The triennial Automated Meter Infrastructure Audit and annual IT audit were completed this quarter with Pioneer receiving a very favorable review including a cybersecurity score that placed Pioneer in the top 5% amongst utilities
STRATEGIC PRIORITY: OPERATIONAL EXCELLENCE
Objective Description Status
Prior
Quarter Comments
5.1 Pursue expansion opportunities with like-minded communities by initiating conversations with leadership within the jurisdictions
Staff will begin an implementation study for consideration of Nevada County and the City of Grass Valley. Other opportunities including Yuba County and Sutter County are being investigated.
5.2 Build policies and procedures that facilitate the growth of our service area Staff is applying its policies in the evaluation of expansion opportunities
5.3 Implement policies that support the achievement of cash reserve targets The Committee launch in late 2021. Recommendation is expected to be delivered to the Board by end of 2022.
5.4 Achieve an investment grade credit rating
Pioneer expects to be near 120 days of cash on hand near the end of 2022 which will prompt discussions with the rating agencies
5.5 Maintain participation in legislative and regulatory proceedings that positively impact the Power Charge Indifference Adjustment ("PCIA") rate, advocate for cost saving legislation and regulations and work to hold PG&E accountable through legislation A huge legislative victory in 2021 with the passing of AB843 presents a new set of challenges with the CPUC converting the bill into procedural action. Staff has also been active this quarter meeting with various legislative offices for support of biomass initiatives.
STRATEGIC PRIORITY: FINANCIAL STABILITY & STRATEGIC GROWTH Page | 1
Pioneer Community Energy
Glossary of Terms
CAISO – California Independent System Operator - a non-profit independent system operator that oversees the operation of the California bulk electric power system, transmission lines and electricity market generated and transmitted by its members (~80% of California’s electric flow). Its stated mission is to “operate the grid reliably and efficiently, provide fair and open transmission access, promote environmental stewardship and facilitate effective markets and promote infrastructure development. CAISO is regulated by FERC and governed by a five-member governing board appointed by the governor.
CALCCA – California Community Choice Association – Association made up of Community Choice Aggregation (CCA) groups which represents the interests of California’s community choice electricity providers.
CARB – California Air Resources Board – The CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change in California.
CEC – California Energy Commission
CPUC – California Public Utility Commission
C&I – Commercial and Industrial – Business customers
CP – Compliance Period – Time period to become RPS compliant, set by the CPUC (California Public Utilities Commission)
DA – Direct Access – An option that allows eligible customers to purchase their electricity directly from third party providers known as Electric Service Providers (ESP).
DA Cap – the maximum amount of electric usage that may be allocated to Direct Access customers in California, or more specifically, within an Investor-Owned Utility service territory.
DA Lottery – a random drawing by which DA waitlist customers become eligible to enroll in DA service under the currently-applicable Direct Access Cap.
DA Waitlist – customers that have officially registered their interest in becoming a DA customer but are not yet able to enroll in service because of DA cap limitations.
DAC – Disadvantaged Community
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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.