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, vacant
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 efforts to protect public health and the safety of our Placer and El Dorado County residents, public access will include attending in person at the meeting location posted on this agenda as well as continued remote audio/visual participation by accessing the zoom meeting link above.
Residents participating by remote access 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
November 17, 2022
Pioneer Community Energy Offices
2510 Warren Drive, Suite B, Rocklin, CA 95677
3:00 PM Regular Session
f/ONEER
COMMUNITY ENERGY
3:00 PM Call to Order
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 September 15 & October 20, 2022 regular meetings. (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)
REGULAR SESSION
III. REGULAR AGENDA
2) ADMINISTRATION
Resolution approving Amendment No. 5 to the Amended and Restated Joint Exercise of Powers Agreement to allow the addition of two new members, the cities of Grass Valley and Nevada City, upon Certification of Addendum No. 2 to Pioneer Community Energy’s Implementation Plan and Statement of Intent by the California Public Utilities Commission (ACTION - ECKERT)
RECOMMENDATION: Adopt Resolution approving Amendment No. 5 to the Amended and Restated Joint Exercise of Powers Agreement to allow the addition of two new members, the cities of Grass Valley and Nevada City, upon certification of Addendum No. 2 to Pioneer Community Energy’s Implementation Plan and Statement of Intent by the California Public Utilities Commission.
3) ADMINISTRATION
Resolution approving Addendum No. 2 to the Community Choice Aggregation Implementation Plan and Statement of Intent (ACTION - ECKERT) RECOMMENDATION: Adopt Resolution approving Addendum No. 2 to the Pioneer Community Energy Community Choice Aggregation Implementation Plan and Statement of Intent to address Pioneer’s expansion into the cities of Grass Valley and Nevada City and authorizing submittal to the California Public Utilities Commission. 4) FINANCE & ADMINISTRATION
Quarterly Financial Reports through September 2022 (DISCUSSION - KOEHN) RECOMMENDATION: Receive Quarterly Financial Reports through September 2022. 5) FINANCE & ADMINISTRATION
California Arrearage Payment Program (CAPP) 2.0 Update (DISCUSSION - KOEHN) RECOMMENDATION: Receive an update on the California Arrearage Payment Program (CAPP).
6) ADMINISTRATION
Resolution Commending Vice Chair Duncan for His Dedicated Service to Pioneer Community Energy (ACTION - ECKERT)
RECOMMENDATION: Adopt Resolution commending Director Jeff Duncan for his dedication and outstanding service in directing Pioneer Community Energy.
IV. GENERAL ADMINISTRATIVE FUNCTION – PART II
A. BOARD MEMBER COMMUNICATIONS
B. EXECUTIVE DIRECTOR COMMUNICATIONS
C. ITEMS FOR INFORMATION
1. Glossary of Terms
D. ADJOURNMENT
Pioneer Community Energy is committed to ensuring that persons with disabilities are provided the resources to participate fully in its public meetings. If you are hearing impaired, we have listening devices available. If you require additional disability-related modifications or accommodations, including auxiliary aids or services, please contact the Clerk of the Board. If requested, the agenda shall be provided in appropriate alternative formats to persons with disabilities. All requests must be in writing and must be received by the Clerk five business days prior to the scheduled meeting for which you are requesting accommodation. Requests received after such time will be accommodated only if time permits.
Affidavit of Posting
I, Teresa Willock, Board Secretary, declare under penalty of perjury that the foregoing agenda for the November 17, 2022 regular meeting of the Pioneer Community Energy Governing Board was posted and available for public review on November 10, 2022 at the offices of Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, CA 95677; and was available on the Pioneer website at: https://pioneercommunityenergy.org/about-us/meetings-and-agendas/ 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:
https://pioneercommunityenergy.org/about-us/meetings-and-agendas/ Any document provided at the meeting by staff or by the public will be provided by the Board Clerk upon request by phone at (916) 758-8946, or by email at: [email protected].
Next Regular Meeting Scheduled for:
December 15, 2022 at 3:00 PM
Pioneer Community Energy Offices
2510 Warren Drive, Suite B
Rocklin, CA 95677
PIONEER COMMUNITY ENERGY
GOVERNING BOARD
September 15, 2022
Minutes
Entry No. 1
Heard General Administration Functions, Part I.
Call to Order
Pioneer Community Energy Governing Board met in open session at 3:00 PM on September 15, 2022. This meeting convened at the City of Auburn Council Chamber, 1225 Lincoln Way, Auburn, California 95603.
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://us02web.zoom.us/j/85898653452 and livestream viewing at City of Auburn’s YouTube account:
https://www.youtube.com/channel/UCmZkDGdt8ce1ckCRgcX-15A/live.
Roll Call
P A Title Name Agency
x Chair Alice Dowdin Calvillo City of Auburn
x Vice Chair Jeff Duncan Town of Loomis
x - 3:10 Director Wes Heathcock City of Colfax
x Director John Hidahl County of El Dorado
x - phone 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
Chair Dowdin Calvillo presided over the meeting.
Agenda Review
Reviewed and made no revision to the meeting agenda for September 15, 2022.
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 July 21, 2022 regular meeting.
1) 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 (PCE), including all of the Board-appointed Committees; and 2) Directed 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.
Received Draft Financial Reports for July 2022.
1) Adopted Resolution 2022-19 approving the attestations to the veracity of the 2021 Power Source Disclosure Report for Pioneer Standard and the associated Power Content Label; and 2) Adopted Resolution 2022-20 approving the attestations to the veracity of the 2021 Power Source Disclosure Report for Green100 and the associated Power Content Label. (3) Approved the Pioneer Power Content Label Notice for distribution per Public Utilities Code Sections 398.4 and 398.5.
Received Conflict of Interest Code Amendment update.
Adopted Resolution 2022-21 approving the job description for the Commercial Coordinator and salary range for both the Commercial Coordinator and the Residential Coordinator job classifications.
MOTION: Duncan/Hidahl. Vote: 8:0:1.
ROLL CALL: Dowdin Calvillo, Duncan, Hidahl, Holmes, Janda, Jones, Karleskint, Thomas.
No/Abstain: None.
Absent: Heathcock.
Entry No. 3
Received the results of the Impact Study for the expansion of Pioneer Community Energy into Unincorporated Nevada County and City of Grass Valley.
Entry No. 4
Adopted Resolution 2022-22 authorizing staff to prepare Addendum No. 2 to Pioneer Community Energy’s Implementation Plan and Statement of Intent and Amendment No. 5 to the Joint Exercise of Powers Agreement to allow the addition of three new members, Unincorporated Nevada County, the City of Grass Valley and Nevada City.
MOTION: Hidahl/Holmes. Vote: 9:0:0.
ROLL CALL: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Holmes, Janda, Jones, Karleskint, Thomas.
No/Abstain: None.
Absent: None.
Entry No. 5
Received draft Fiscal Year 2021-22 year-end Financial Reports through June 30, 2022.
Entry No. 6
Heard General Administration Functions, Part II.
A. Board Member Communications
Committee Chair Dowdin Calvillo reported that the Expansion ad hoc Committee met on September 14, 2022, to receive a presentation of the Impact Studies Report from Pacific Energy Advisors; and discussed the process for bringing the new members on board in 2024.
Chair Dowdin Calvillo also reported her activities with PCWA in support of better forestry management as it relates to effects from wildfires on water storage and hydroelectric generation. As a proactive approach needs to be taken, this will be brought to a policy committee while attending Cap-to-Cap in Washington, D.C.
Director Hidahl reported that as a result of the Caldor fire in El Dorado County, $7.8 Million in federal funding was received by the water agency; and he will share the contact for more information to any interested Member agencies.
Director Hidahl also reported that he will be remotely attending the October meeting due to participating in the League of California Cities retreat and confirmed that the El Dorado County facility would still be available for the Pioneer Board of Directors, but he will not be there in person.
B. Executive Director Communications
General Counsel Khalsa provided an update as to legislation activities regarding the Brown Act. AB 1944 has been postponed to next year; and AB 2449 was signed by the Governor on September 13, 2022.
Governing Board Minutes
September 15, 2022
As long as we are under the state of emergency declaration, AB 361 determinations will still allow for remote participation as currently in place. However, once the emergency is lifted, the original Brown Act rules would apply in that a Member attending from a different location – accessible to the public and posted on the agenda, there would be no limit to the number of meetings a member is attending remotely.
AB 2449 specifies that a minority of the body could participate remotely; at least a quorum of the members to attend in person. General Counsel Khalsa confirmed that she and Executive Director Eckert are working on the specifics as to a solution for Pioneer Community Energy.
Chair Dowdin Calvillo requested that the language regarding no in person public participation be removed from this Board’s agenda, to continue with the hybrid model and allow anyone who is interested in doing so to attend in person.
Director Hidahl commented that at times there are severe weather conditions and would not be able to drive to in person meeting; and inquired if severe weather is consider an emergency.
General Counsel Khalsa confirmed that it would be any emergency situation that prevents in person participation, not only illness.
Executive Director Eckert reported that Pioneer’s new Manager of Legislative and Regulatory Affairs will be onboard and introduced to the Board at the October meeting; expressed sympathy for the victims of the Mosquito fire; and appreciation for the City of Auburn staff and crew for hosting Pioneer for today’s meeting.
Executive Director Eckert informed the Board that the meeting location is to be determined for the October meeting.
C. Informational Items
Received the Glossary of Terms.
D. Adjournment
The meeting adjourned at 4:05 PM
ATTEST:
Minutes approved as presented by a majority vote of
the Governing Board on November 17, 2022.
Teresa Willock, Board Secretary
Governing Board Minutes
September 15, 2022
PIONEER COMMUNITY ENERGY
GOVERNING BOARD
October 20, 2022
Minutes
Entry No. 1
Heard General Administration Functions, Part I.
Call to Order
Pioneer Community Energy Governing Board met in open session at 3:01 PM on October 20, 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
Chair Dowdin Calvillo presided over the meeting.
Agenda Review
Reviewed and made no revision to the meeting agenda for October 20, 2022.
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:
Item 1a, Approve minutes of the September 15, 2022 regular meeting, was removed for separate consideration.
1) 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 (PCE), including all of the Board-appointed Committees; and 2) Directed that the meetings of the Board of Directors and all other legislative bodies of Pioneer Community Energy 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 August 2022.
Approved Customer Satisfaction Survey Incentives.
Adopted Resolution 2022-23 approving and authorizing the Executive Director to execute a Memorandum of Understanding with Special District Risk Management Authority (SDRMA).
Approved the Consent Agenda less Item 1a, Approve minutes of the September 15, 2022 regular meeting.
MOTION: Hidahl/Thomas Vote: 7:0:2.
ROLL CALL: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Holmes, Jones, Thomas.
No/Abstain: None.
Absent: Janda, Karleskint.
Entry No. 3
Approved the minutes of the September 15, 2022 regular meeting as amended.
MOTION: Holmes/Hidahl Vote: 7:0:2.
ROLL CALL: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Holmes, Jones, Thomas.
No/Abstain: None.
Absent: Janda, Karleskint.
Entry No. 4
Adopted Resolution 2022-24 authorizing the execution and delivery of a clean energy purchase contract and certain other documents in connection with the issuance by the California Community Choice Financing Authority of its clean energy project revenue bonds to finance a 30-year Prepay Transaction.
MOTION: Holmes/Heathcock Vote: 7:0:2.
ROLL CALL: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Holmes, Jones, Thomas.
No/Abstain: None.
Absent: Janda, Karleskint.
Entry No. 5
Adopted Resolution 2022-25 approving the Pioneer Community Energy 2022 Integrated Resource Plan (IRP) in substantive form and authorizing submission of the IRP to the California Public Utilities Commission (CPUC) pursuant to the requirements of CPUC Rulemaking (R.) 20-05-003, under Senate Bill (SB) 350.
Chair Dowdin Calvillo commended staff and expressed appreciation for the presentation and the complexity of this report as well as the inclusion of the Lessons Learned section and the request to not require remittance of so much data in the future.
MOTION: Thomas/Hidahl Vote: 7:0:2.
ROLL CALL: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Holmes, Jones, Thomas.
No/Abstain: None.
Absent: Janda, Karleskint.
Entry No. 5
Received an overview of residential customer outreach updates.
Director Thomas requested tracking Opt-Outs as well. Director Riffey confirmed that Pioneer does have customers opting out on a regular basis and these are tracked as well; and suggested that an additional presentation be prepared after the new year as to include the data from the upcoming automatic enrollment period.
Chair Dowdin Calvillo commented staff on the Solar Webinars; requested follow-up on the success of the mailer in bringing residents to the website; and, suggested for staff to be creative and “dress up” the Pioneer booth to better draw people to the booth and opportunity for engagement. To that, Director Hidahl suggested mini cupcakes to draw families.
Director Hidahl requested opt-out data for solar customers in El Dorado County. Director Riffey responded with information regarding the September automatic enrollment of the solar customers for which the participation rate increase was 2%; and that he will provide data on these customers returning.
Governing Board Minutes
October 20, 2022
Director Riffey also informed the Board of Pioneer’s ability to utilize opt-out data to know how many opt-outs are solar customers; reminded them that if a customer had opted out within 60 days of auto-enrollment, they are able to opt back in at any time; and confirmed that new homes built with solar automatically default to Pioneer when built within Pioneer territory and will coordinate with major builders.
Entry No. 6
Heard General Administration Functions, Part II.
A. Board Member Communications
Vice Chair Duncan reported that the Audit & Finance Committee met on September 19, 2022, to receive a presentation from PFM Financial Advisors, who represent and advise Pioneer on the Energy Prepay Bond Transaction. The presentation reviewed the Prepay Bond structure and updated the Committee on the transaction progress. The Committee voted to recommend to the Board approval of the Bond documents being considered at the upcoming Board meeting. In addition, Pisenti & Brinker, Pioneer’s independent auditors, presented an overview of the upcoming audit of Pioneer’s financial activity for Fiscal Year 2021- 2022.
Director Hidahl announced that he will participate in the November 17 meeting, though he will be in Toronto as speaker at the North State Building Industry Association (BIA) event where he will have opportunity to mention Pioneer Community Energy.
B. Executive Director Communications
Executive Director Eckert introduced Kirstin Kolpitcke, who joined the Pioneer team on September 26, 2022, as our Manager of Legislative and Regulatory Affairs.
Reminded the Board that the November 17 meeting was scheduled to convene at the Placer County Board of Supervisors chamber.
Inquired as to how many Members would be interested in scheduling a tour of the California Independent System Operator (CAISO) facility in Folsom. Found that several are interested, so directed staff to make arrangements to schedule the tour.
Director Jones informed the Board that all Members of the Board of Supervisors will be in Washington, D.C. during that week.
Chair Dowdin Calvillo suggested that the November meeting be held at the Pioneer Community Energy office in Rocklin, then resume the ‘road show’ schedule in 2023.
In an update regarding Brown Act legislation, General Counsel Khalsa reported that Governor Newsom announced his plan to end the state-of-emergency in February 2023. Then General Counsel proceeded to report that AB 2449 does not supersede the original Brown Act but is in addition to the Act providing an in-person option with the ability to attend remotely twice per year with just cause and without posting the remote location. However, a quorum of the Body must attend in person. General Counsel Khalsa will draft an advice letter for the Executive Director’s review and discussion with the Board Chair prior to bringing the item to a future agenda for Board consideration.
Kirstin Kolpitcke, Manager of Legislative and Regulatory Affairs, informed the Board that four Community Choice Aggregators (CCAs) and Rural County Representatives of California (RCRC) are gathering signatures of elected officials on a letter to the California Public Utilities Commission (CPUC) urging them to take action to regulate fast trip outages; the CCAs will be providing Pioneer with names of their local legislators, then Pioneer and RCRC will file the letter with the CPUC.
Governing Board Minutes
October 20, 2022
C. Informational Items
Received the mPOWER Program Report for June 2022 and the Glossary of Terms.
D. Adjournment
The meeting adjourned at 4:29 PM
ATTEST:
Minutes approved as presented by a majority vote of
the Governing Board on November 17, 2022.
Teresa Willock, Board Secretary
Governing Board Minutes
October 20, 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: 11/17/2022
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: 11/17/2022
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 2
To: The Governing Board
From: Don Eckert, Executive Director
Item 2: Adopt Resolution Approving Amendment No. 5 to the Amended and Restated Joint Exercise of Powers Agreement to allow the addition of two new members, the Cities of Grass Valley, and Nevada City, Upon the Certification of Addendum No. 2 to Pioneer Community Energy’s Implementation Plan and Statement of Intent by the California Public Utilities Commission
Date: 11/17/2022
RECOMMENDATION
Adopt Resolution approving Amendment No. 5 to the Amended and Restated Joint Exercise of Powers Agreement (“JPA”) to allow the addition of two new members, the Cities of Grass Valley, and Nevada City, upon certification of Addendum No. 2 to Pioneer Community Energy’s (“Pioneer”) Implementation Plan and Statement of Intent by the California Public Utilities Commission (“CPUC”).
EXPANSION COMMITTEE RECOMMENDATION
At the September 14, 2022, Expansion Committee meeting, staff presented the results of the Impact Assessment Study. The Expansion Committee approved unanimously to authorize the preparation of an Addendum to Pioneer’s Implementation Plan and Statement of Intent and an Amendment to the JPA allowing expansion into the Cities of Grass Valley and Nevada City.
BACKGROUND
The City of Grass Valley expressed interest in joining Pioneer’s JPA in early 2022 resulting in the City Council authorizing funding their share to conduct an impact assessment study in March 2022. Nevada City expressed interest in joining Pioneer’s JPA in mid-summer 2022 resulting in the City Council authorizing funding their share to conduct an impact assessment study in August 2022.
At the September 15, 2022, Governing Board meeting, the Board received a report on the impact assessment results from Pacific Energy Advisors. Subsequently, the Board authorized staff to begin the process of preparing an amendment to the JPA and addendum to the Implementation Plan and Statement of Intent with the purpose of allowing the cities of Grass Valley and Nevada City to join Pioneer’s JPA.
ANALYSIS & DISCUSSION
During 2022, the Cities of Grass Valley and Nevada City approached Pioneer with an interest in becoming members of its JPA for the purpose of participating in its Community Choice Aggregation (“CCA”) Program. In particular, both cities were interested in local control, providing their citizens a choice, and utility bill savings when compared to Pacific Gas & Electric.
CPUC Compliance
In February of 2017, the CPUC passed Resolution E-4907 which delays the timeline by which a jurisdiction may begin initial service with a CCA. As a result, the earliest Pioneer may provide service to the cities of Grass Valley and Nevada City is 2024. To begin the process to provide service in 2024, Resolution E-4907 requires Pioneer fJONEER
COMMUNITY ENERGY
Agenda Item: 2 Agenda Date: 11/17/2022
to submit an Addendum to Pioneer’s Implementation Plan and Statement of Intent (“Addendum”) to the CPUC no later than December 31, 2022. Staff anticipates the Addendum will be modeled in consideration of Pioneer’s Addendum No. 1 which was filed with the CPUC in 2020.
Impact Assessment
The impact assessment was completed for the purposes of determining potential financial impacts related to the addition of customers located within the cities of Grass Valley and Nevada City qualifying service areas.
The impacts of this prospective membership expansion demonstrate a positive fiscal impact for Pioneer’s ratepayers and projected ratepayer savings for the potential new members ratepayers. The benefits of expansion can be summarized as:
• Financial – Increased margins from the addition of more customers will strengthen Pioneer’s balance sheet, contribute to reaching the reserves target and support rate stability • Power Supply – While the increase in load requires increase power procurement needs, the larger load also attracts suppliers with better credit profiles and opportunities to expand diversity in Pioneer’s portfolio
• Legislative & Regulatory – Expansion provides Pioneer access to a larger pool of elected officials to promote its agenda or respond to adverse regulation and/or legislation • Local Projects & Jobs – Expansion that strengthens Pioneer’s balance sheet also provides opportunities to afford investment in local power supply projects that creates jobs and directly impacts the communities we serve
JPA Amendment
The Amended and Restated Joint Powers Agreement for Pioneer (the “Amended and Restated JPA”) provides a process for amendments adding new Voting Members. Section 10B requires each member who wishes to participate in the CCA program to adopt a resolution expressing its desire to become a member to the Amended and Restated JPA.
Section 10A requires each potential member to adopt an ordinance or resolution in accordance with PUC section 366.2(c)(12) specifying intent to implement a CCA Program within its jurisdiction by participation in the Pioneer Joint Powers Authority. Both the City of Grass Valley and Nevada City have adopted requisite ordinances accordingly.
Section 10D further provides that upon adoption of the ordinance and resolution pursuant to 10A and 10B, the Pioneer Board shall direct the preparation and filing of the new or amended Implementation Plan and Statement of Intent to include the additional territory as soon as reasonably practicable. At the September 15, 2022, Board meeting, the Board directed staff to prepare an amended Implementation Plan and Statement of Intent.
The addition of new Voting Members to the Amended and Restated JPA requires an amendment to the Amended Restated JPA. Section 19 provides the Amended and Restated JPA may only be amended by written amendment approved by a vote of the Board members as provided in Section 8 (a two-thirds vote), Pioneer is required to provide all Members at least 30 days written notice prior to the date on which the Pioneer Board will vote on an amendment, and amendments required to add new Voting Members shall be executed by the Voting Members.
In accordance with the relevant sections of the Amended and Restated JPA, each of the existing Voting Members have adopted resolutions approving Amendment No. 5 to the Amended and Restated JPA to add the cities of Grass Valley and Nevada City as Voting Members. Further, on September 29, 2022, staff provided written notice to all Voting Members that the Board would take a vote on Amendment No. 5 to the Amended and Restated JPA on at this meeting on November 17, 2022. Neither the Addendum to the Implementation Plan and Statement of Intent nor the Implementation Plan and Statement of Intent will affect the Board’s ability to address governance or other topics related to the JPA agreement.
Additionally, the resolution approving Amendment No. 5 will not become effective until receipt of CPUC certification of the Addendum No. 2 to the Implementation Plan and the Statement of Intent, in accordance with Agenda Item: 2 Agenda Date: 11/17/2022
Section 10D of the Amended and Restated JPA. Once the requisite certification is received, Amendment No. 5 will become effective, and the cities of Grass Valley and Nevada City will become Voting Members of Pioneer with all rights provided to Voting Members as outlined in the Amended and Restated JPA and any subsequent agreements thereto.
California Environmental Quality Act (“CEQA”) Requirements There are no CEQA implications associated with this recommended action.
STRATEGIC PLAN
The report supports the Financial Stability & Strategic Growth priority of the strategic plan.
FISCAL IMPACT
The impact assessment study conducted by Pacific Energy Advisors projected a positive fiscal impact with the expansion of the cities of Grass Valley and Nevada City into Pioneer.
ATTACHMENTS
1. Resolution approving Amendment No. 5 to the Amended and Restated Joint Exercise of Powers Agreement for Pioneer 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 November 17, 2022, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, the Sierra Valley Energy Authority was established on September 9, 2015, between the County of Placer and the City of Colfax; and
WHEREAS, the Sierra Valley Energy Authority was originally created for the purpose of providing a financing conduit and program expansion platform for the mPOWER Program; and WHEREAS, counties and cities have the power under California law to aggregate electric load, to purchase and supply electricity for themselves and customers within their jurisdictions, by providing a Community Choice Aggregation Program, pursuant to California Public Utilities Code Sections 331.1 and 366.2; and
WHEREAS, the Amended and Restated Joint Exercise of Power Agreement for the Sierra Valley Energy Authority (the “Amended and Restated JPA”) became effective on February 22, 2017; and
WHEREAS, the Amended and Restated JPA allowed for the establishment of a Community Choice Aggregation (the “CCA”) within the jurisdictions of the Voting Members and authorized the Cities of Auburn, Lincoln, Rocklin, and the Town of Loomis to become Voting Members; and WHEREAS, on July 17, 2017, the Governing Board of the Sierra Valley Energy Authority took action to rename and brand Sierra Valley Energy Authority as Pioneer Community Energy (“Pioneer”); and
In the matter of: RESOLUTION APPROVING
AMENDMENT NO. 5 TO THE AMENDED AND
RESTATED JOINT EXERCISE OF POWERS
AGREEMENT FOR PIONEER COMMUNITY
ENERGY EXPANDING PIONEER COMMUNITY
ENERGY’S JOINT POWERS AUTHORITY
MEMBERSHIP
2 WHEREAS, on December 17,2020, the Governing Board approved Amendment No. 1 to the JPA to authorize the City of Placerville and Unincorporated El Dorado County to become Voting Members; and
WHEREAS, both the Cities of Grass Valley and Nevada City expressed a desire to join Pioneer for the purpose of participating in Pioneer’s Community Choice Aggregation Program (“CCA Program”); and
WHEREAS, the Grass Valley and Nevada City Councils both took appropriate steps toward offering CCA service within their respective communities, adopting requisite resolutions and ordinance at duly noticed meeting of the municipalities’ governing councils; and WHEREAS, an impact assessment was performed to analyze the feasibility of expanding Pioneer’s CCA Program service territory into the Cities of Grass Valley and Nevada City, the results of which showed such an expansion to be beneficial to both existing Pioneer ratepayers, and potential ratepayers in the Cities of Grass Valley and Nevada City; and WHEREAS, each existing Voting Member has adopted respective resolutions approving Amendment No. 5 to the Amended and Restated JPA to provide for the Cities of Grass Valley and Nevada City to become Voting Members pursuant to the requirements of the Amended and Restated JPA; and
WHEREAS, the City Councils of the Cities of Grass Valley and Nevada City have adopted respective resolutions approving the Amended and Restated JPA and Amendment No. 5 to the Amended and Restated JPA; and
WHEREAS, pursuant to section 8 of the Amended and Restated JPA, an amendment requires an affirmative vote of at least two-thirds of the Pioneer Board Members; and WHEREAS, Pioneer provided written notice to each Voting Member 30 days prior to the date the Pioneer Board intended to vote on an amendment to the Amended and Restated JPA as required by section 19 of the Amended and Restated JPA; and WHEREAS, to these ends, the Pioneer Board desires to approve Amendment No. 5 to the Amended and Restated JPA to provide for the Cities of Grass Valley and Nevada City to become Voting Members under the Amended and Restated JPA for Pioneer Community Energy conditioned on an effective upon receipt of certification of Addendum No. 2 to the Implementation Plan and Statement of Intent from the California Public Utilities Commission.
BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:
1. The above recitals are true and correct.
2. This Amendment No. 5 to the Amended and Restated Joint Exercise of Powers Agreement for Pioneer Community Energy provides for admission of the Cities of Grass Valley and Nevada City as Voting Members.
3. The Pioneer Community Energy Board of Directors hereby approves Amendment No. 5 to the Amended and Restated Joint Powers Agreement for Pioneer Community Energy under Joint Powers Law, in the form attached hereto as Exhibit A. The Chair is hereby authorized and directed to execute Amendment Resolution 2022-__
3 No. 5 to the Amended and Restated Joint Powers Agreement for Pioneer Community Energy in the name and on behalf of the Board.
4. Pioneer Staff is hereby authorized to file Amendment No. 5 to the Amended and Restated Joint Powers Agreement for Pioneer Community Energy with the Secretary of State, LAFCos with jurisdiction over Pioneer’s service territory, and to take all other necessary steps to implement Amendment No. 5.
5. This Resolution shall take effect immediately upon its adoption.
Exhibit A: Amendment No. 5 to the Amended and Restated JPA Resolution 2022-__
AMENDMENT NO. 5 TO THE AMENDED AND RESTATED JOINT EXERCISE
OF POWERS AGREEMENT FOR PIONEER COMMUNITY ENERGY
THIS AMENDMENT (hereafter "Amendment") amends the Amended and Restated Joint Exercise of Powers Agreement (hereafter "Amended and Restated JPA") with the effective date of February 22, 2017 which was by and between the COUNTY OF PLACER, the CITY OF AUBURN, the CITY OF COLFAX, the CITY OF LINCOLN, the TOWN OF LOOMIS, and the CITY OF ROCKLIN, and as executed pursuant to Amendment No. 1 to the Amended and Restated JPA by the COUNTY OF EL DORADO and the CITY OF PLACERVILLE all public entities of the State of California. By this Amendment the City of Nevada City and the City of Grass Valley (collectively, the "New Voting Members") become signatories to the Amended and Restated JPA.
WHEREAS, on September 9, 2015 the COUNTY OF PLACER and the CITY OF COLFAX entered into the original Joint Exercise of Powers Agreement for the purpose of establishing the Sierra Valley Energy Authority as a joint powers authority under the Joint Exercise of Powers Act, Government Code Section 6500, et seq.; and WHEREAS, the Amended and Restated JPA became effective on February 22, 2017 and authorized the Cities of Auburn, Lincoln, Rocklin, and the Town of Loomis to become Voting Members of the Joint Exercise of Powers Agreement and established a Community Choice Aggregation Program within the jurisdictions of the Voting Members; and WHEREAS, Resolution No. 2017-3 of the Sierra Valley Energy Authority approved a name change from Sierra Valley Energy Authority to Pioneer Community Energy, as it is known today; and
WHEREAS, Amendment No. 1 to the Amended and Restated JPA, which was approved by the Governing Board on December 27, 2020 and became effective March 9, 2021, authorized the County of El Dorado and the City of Placerville to become Voting Members; and WHEREAS, the Voting Members wish to amend the Amended and Restated JPA a fifth time to add the City of Nevada City and the City of Grass Valley as Voting Members.
NOW, THEREFORE, IT IS MUTUALLY AGREED THAT THE FOLLOWING CHANGES
AND ADDITIONS ARE HEREBY MADE IN THE AMENDED AND RESTATED JOINT POWERS AGREEMENT:
1. Section 5.A shall be replaced by the following:
Section 5. Governance and Internal Organization
A. Governing Board. The governing body of the Authority shall consist of up to a eleven (11) person Board, consisting of two (2) members of the Placer County Board of Supervisors, and one (1) member each appointed by the El Dorado County Board of Supervisors, the Cities of Auburn, Colfax, Grass Valley, Rocklin, Lincoln, Nevada City, Placerville and the Town of Loomis that becomes a signatory to this Agreement ("Board Member").
The Board of Supervisors from Placer County, the Board of Supervisors from El Dorado County, and the City/Town Councils set out above shall respectfully appoint such member(s) and not less than one alternate member. The term of office of each Board Member and respective alternate may be terminated at any time by the appointing Board of Supervisors or City/Town Council. The designated alternate shall have authority to attend, participate, and vote at any meeting of the Board or committee whenever the regular member, for whom they are designated to act as an alternate, is absent from the meeting.
2. Effective Date. This Amendment shall take effect and become operative after the Cities of Grass Valley and Nevada City each approve and sign the Amendment and after the CPUC certifies the Implementation Plan field by Pioneer to include the Cities of Grass Valley and Nevada City.
3. Counterparts. This Amendment may be executed in counterparts and be as valid and binding as if each Member signed the same copy. A faxed or scanned copy of the executed signature page shall be sufficient to cause the terms of this Amendment to become fully operative. The effective date of this Amendment shall be the date it is approved by the Pioneer Board.
4. Except as specifically amended above, all other provisions of the Amended and Restated JPA shall remain in full force and effect.
IN WITNESS WHEREOF, the Voting Members have executed this Amendment No. 5 to the Amended and Restated Joint Powers Agreement for Pioneer Community Energy.
EXECUTED ON
By _____________________________
Chairman, Board of Supervisors
COUNTY OF EL DORADO, a political
subdivision
And approved as to form _________________
ATTEST:
______________________________________
SIGNATURES CONTINUED ON NEXT PAGE
EXECUTED ON
By _____________________________
Chairman, Board of Supervisors
COUNTY OF PLACER, a political
subdivision
And approved as to form _________________
ATTEST:
______________________________________
SIGNATURES CONTINUED ON NEXT PAGE
EXECUTED ON
By _____________________________
Chairman, Board of Supervisors
CITY OF AUBURN, a Municipal Corporation
And approved as to form _________________
ATTEST:
______________________________________
SIGNATURES CONTINUED ON NEXT PAGE
EXECUTED ON
By _____________________________
Mayor, City Council
CITY OF COLFAX, a Municipal Corporation
And approved as to form _________________
ATTEST:
______________________________________
SIGNATURES CONTINUED ON NEXT PAGE
EXECUTED ON
By _____________________________
Mayor, City Council
CITY OF GRASS VALLEY, a Municipal
Corporation
And approved as to form _________________
ATTEST:
______________________________________
SIGNATURES CONTINUED ON NEXT PAGE
EXECUTED ON
By _____________________________
Mayor, City Council
CITY OF LINCOLN, a Municipal Corporation
And approved as to form _________________
ATTEST:
______________________________________
SIGNATURES CONTINUED ON NEXT PAGE
EXECUTED ON
By _____________________________
Mayor, City Council
CITY OF NEVADA CITY, a Municipal
Corporation
And approved as to form _________________
ATTEST:
______________________________________
SIGNATURES CONTINUED ON NEXT PAGE
EXECUTED ON
By _____________________________
Mayor, City Council
CITY OF PLACERVILLE, a Municipal
Corporation
And approved as to form _________________
ATTEST:
______________________________________
SIGNATURES CONTINUED ON NEXT PAGE
EXECUTED ON
By _____________________________
Mayor, City Council
CITY OF ROCKLIN, a Municipal Corporation
And approved as to form _________________
ATTEST:
______________________________________
SIGNATURES CONTINUED ON NEXT PAGE
EXECUTED ON
By _____________________________
Mayor, Town Council
TOWN OF LOOMIS, a Municipal Corporation
And approved as to form _________________
ATTEST:
______________________________________
Staff Report – Item 3
To: The Governing Board
From: Don Eckert, Executive Director
Item 3: Adopt Resolution Approving Addendum No. 2 to the Community Choice Aggregation Implementation Plan and Statement of Intent
Date: 11/17/2022
RECOMMENDATION
Adopt Resolution approving Addendum No. 2 to the Pioneer Community Energy (“Pioneer”) Community Choice Aggregation Implementation Plan and Statement of Intent to address Pioneer’s expansion into the cities of Grass Valley and Nevada City and authorizing submittal to the California Public Utilities Commission (“CPUC”).
BACKGROUND
At the December 17, 2020, Governing Board meeting, the Board approved Addendum No. 1 to the Pioneer Community Choice Aggregation Implementation Plan and Statement of Intent which was later submitted to the CPUC allowing the city of Placerville and unincorporated El Dorado County to join Pioneer.
To begin the process of providing community choice aggregation services to the cities of Grass Valley and Nevada City, Pioneer must file Addendum No. 2 in order to meet the requirements of CPUC Resolution E-4907 which includes the filing of an Implementation Plan and Statement of Intent. Upon certification of Addendum No. 2 by the CPUC, Pioneer will be able to provide community choice aggregation services to the cities of Grass Valley and Nevada City as early as January 2024.
ANALYSIS & DISCUSSION
Addendum No. 2 reflects the anticipated changes and consequences associated with the addition of the cities of Grass Valley and Nevada City including:
• Phase-In;
• Customer energy requirements;
• Peak Demand;
• Renewable energy purchases; and
• Financial impacts
The format and general content of Addendum No. 2 has been successfully utilized by Pioneer and other California Community Choice Aggregation programs during similar expansion efforts and addresses all requirements identified in Public Utilities Code 366.2(c)(4) including universal access, reliability, equitable treatment of all customer classes and any requirements established by state law or by the CPUC concerning aggregated services.
The CPUC has ninety (90) days to complete its review and certify the Plan but may complete the review sooner.
STRATEGIC PLAN
The report supports the Financial Stability & Strategic Growth priority of the strategic plan. fJONEER
COMMUNITY ENERGY
Agenda Item: 3 Agenda Date: 11/17/2022
FISCAL IMPACT
The impact assessment study conducted by Pacific Energy Advisors projected a positive financial impact with the expansion of the cities of Grass Valley and Nevada City into Pioneer.
ATTACHMENTS
1. Resolution Adopting Addendum No. 2 to the Community Choice Aggregation Implementation Plan and Statement of Intent required by the Public Utilities Code Section 366.2(c)(3) 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 November 17, 2022, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, Pioneer Community Energy (“Pioneer”) is a California joint powers authority established for the purpose of studying, promoting, developing, conducting, operating, and managing energy and energy-related climate change programs including but not limited to implementing a community choice aggregation program under Public Utilities Code Section 366.2; and
WHEREAS, the Governing Board approved Addendum No. 1 to the Community Choice Aggregation Implementation Plan and Statement of Intent to allow the city of Placerville and unincorporated El Dorado County to join Pioneer; and
WHEREAS, the current members of Pioneer include the cities of Auburn, Colfax, Lincoln, Placerville, and Rocklin, the town of Loomis, and unincorporated Placer and El Dorado County; and
WHEREAS, prior to providing service pursuant to an expansion, Public Utilities Code Section 366.2 requires that Pioneer prepare and adopted a Revised Implementation Plan to be filed with the California Public Utilities Commission; and
WHEREAS, the Governing Board has approved Amendment No. 5 to the Amended and Restated Joint Powers Agreement for Pioneer providing for the cities of Grass Valley and Nevada City to become voting members of the Governing Board; and WHEREAS, the Governing Board desires to provide services to the cities of Grass Valley and Nevada City beginning in 2024.
In the matter of: RESOLUTION APPROVING
PIONEER COMMUNITY ENERGY’S ADDENDUM NO.
2 TO THE COMMUNITY CHOICE AGGREGATION
IMPLEMENTATION PLAN AND STATEMENT OF
INTENT AND AUTHORIZING THE EXECUTIVE
DIRECTOR TO SUBMIT ADDENDUM NO. 2 TO THE
CALIFORNIA PUBLIC UTILITIES COMMISSION
2 BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:
1. The above recitals are true and correct.
2. The Governing Board hereby approves Pioneer Community Energy’s Addendum No. 2 to the Community Choice Aggregation Implementation Plan and Statement of Intent and authorizes the Executive Director to submit Addendum No. 2 to the Community Choice Aggregation Implementation Plan and Statement of Intent to address Pioneer’s expansion into the cities of Grass Valley and Nevada City to the California Public Utilities Commission for certification.
3. This Resolution shall take effect immediately upon its adoption.
Exhibit A: Pioneer Community Energy’s Addendum No. 2 to the Community Choice Aggregation Implementation Plan and Statement of Intent addressing Pioneer expansion to the cities of Grass Valley and Nevada City
Resolution 2022-__
PIONEER COMMUNITY ENERGY
ADDENDUM NO. 2 TO THE COMMUNITY
CHOICE AGGREGATION
IMPLEMENTATION PLAN AND
STATEMENT OF INTENT
ADDRESSING PIONEER EXPANSION TO
THE CITIES OF
GRASS VALLEY AND NEVADA CITY
DECEMBER xx, 2022
For copies of this document contact Pioneer Community Energy in Rocklin, California or visit www.Pioneercommunityenergy.ca.gov
'IONEER
COMMUN/TV ENERGY
i December 2022 – Addendum No. 2
Table of Contents
CHAPTER 1 – Introduction..................................................................................................................................... 2 CHAPTER 2 – Changes to Address Pioneer Expansion to the cities of Grass Valley and Nevada City...... 4 Aggregation Process............................................................................................................................................. 4 Program Enrollment............................................................................................................................................. 5 Sales Forecast......................................................................................................................................................... 6 Financial Plan ........................................................................................................................................................ 9 Expansion Addendum Appendices ................................................................................................................... 9 2 December 2022 – Addendum No. 2
CHAPTER 1 – INTRODUCTION
The purpose of this document is to make certain revisions to the Pioneer Community Energy Implementation Plan and Statement of Intent to address the expansion of Pioneer Community Energy (“Pioneer”) to the cities of Grass Valley and Nevada City. Pioneer, formerly Sierra Valley Energy Authority, is a public agency that was formed on September 9, 2015 for purposes of implementing a community choice aggregation (“CCA”) program serving its member communities. At that time, Pioneer’s membership was comprised of six municipalities, including the cities of Auburn, Colfax, Lincoln, and Rocklin, the Town of Loomis and Placer County (together the “Members” or “Member Agencies”). In anticipation of CCA program implementation and in compliance with state law, Pioneer submitted the Pioneer Community Energy Implementation Plan and Statement of Intent (“Implementation Plan”) to the California Public Utilities Commission (“CPUC” or “Commission”) on July 31, 2017. The Implementation Plan was subsequently certified by the Commission on October 31, 2017. Pioneer subsequently launched the Pioneer Community Energy CCA program (“Pioneer” or “Program”) on February 1, 2018 and has been successfully serving customers since that time.
Pioneer’s Board approved the membership requests of El Dorado County and the City of Placerville on December 17, 2020 via Resolution No. 2020-25. Pioneer’s Board also approved the related Addendum No. 1 to Pioneer’s Community Choice Aggregation Implementation Plan and Statement of Intent (“Addendum No. 1”), addressing service delivery within El Dorado County and the City of Placerville. Addendum No. 1 was submitted to the Commission on December 23, 2020; Addendum No. 1 was certified by the Commission thereafter on March 8, 2021.
More recently, Pioneer’s Board approved the membership request of the cities of Grass Valley and Nevada County on September xx, 2022 via Resolution No. xx (attached hereto as Appendix A). These additions to the membership of Pioneer require certain changes that are addressed within this Addendum No. 2 to Pioneer’s Community Choice Aggregation Implementation Plan and Statement of Intent (“Addendum No. 2”).
The Pioneer program currently provides electric generation service to approximately 158,000 customers, including a cross section of residential and commercial accounts located within communities of the participating Members. During its operating history, other California municipalities have monitored Pioneer’s progress and operational success, evaluating the potential opportunity for membership, which would enable customer choice with respect to electric generation service. Pioneer’s Board has been willing to consider organizational growth through selective membership addition(s) to the extent that such growth is expected to benefit Pioneer’s existing customer base as well as prospective customers of any new member community(ies). When membership inquiries have been received, Pioneer’s leadership has considered several key criteria before advancing activities focused on organizational expansion, including the filing of related revisions/addenda to this Implementation Plan. In particular, any prospective member community must have likeminded and compatible leadership relative to Pioneer’s existing Member Agencies, the quantitative assessment of any prospective member 3 December 2022 – Addendum No. 2
must demonstrate expected financial benefits to Pioneer’s existing customer base (based on prevailing market prices for requisite energy products at the time of each analysis), and the operational goals of any prospective member must align with Pioneer’s foundational principles (including the retention of local control related to energy matters, the ability to offer stable and competitive electric generation rates, and the prospective pursuit of energy-related investments within participating communities). As Pioneer receives new membership requests, Pioneer will evaluate and present, at duly noticed public meetings, the results of such membership expansion assessments to ensure that affected constituents are well informed regarding the potential benefits and consequences of expanding Pioneer’s organization and offering CCA service to additional customers. This process was recently observed during the membership assessments of the cities of Grass Valley and Nevada City. In each case, Pioneer staff completed multiple presentations to the prospective member communities and similarly discussed prospective expansion at duly noticed public meetings of its Governing Board. To the extent that membership evaluations demonstrate favorable results, as defined by Pioneer’s Governing Board, and a prospective member community is added to Pioneer’s organization, this Implementation Plan will be revised through a related addendum, which shall highlight key impacts and consequences that are expected to result from the addition of such new community/communities.
In response to public interest and Pioneer’s successful operational track record, the cities of Grass Valley and Nevada City have requested membership in Pioneer Community Energy, and each municipality subsequently adopted the requisite CCA ordinance, enabling the provision of CCA service within each community. Such ordinances, as respectively adopted by the cities of Grass Valley and Nevada City, are attached hereto as Appendices C and D. As previously noted, Pioneer’s Governing Board approved such membership requests at a duly noticed public meeting on September xx, 2022 through the adoption of Resolution No. xxxx.
This Addendum No. 2 describes Pioneer’s expansion plans related to the inclusion of the cities of Grass Valley and Nevada City amongst the Member Agencies. Pioneer intends to enroll eligible customers within the cities of Grass Valley and Nevada City in its CCA Program during or after the month of January 2024, subject to a forthcoming decision by Pioneer’s Governing Board and consistent with related requirements reflected in Commission Resolution E-4907, which specifies relevant timing considerations for Implementation Plan filing and subsequent CCA service commencement. According to the Commission, the Energy Division is required to receive and review a revised Pioneer Implementation Plan reflecting pertinent changes and consequences associated with the addition of new Member Agencies. With this in mind, Pioneer has reviewed its Implementation Plan, which was filed with the Commission on July 31, 2017, and has identified certain information that requires updating to reflect the expected impacts associated with organizational expansion to the cities of Grass Valley and Nevada City. It is also appropriate to update other information at this time, incorporating the most recent available historical electric energy use within Pioneer’s existing service territory, market-based information, and other recent operational results. This Addendum No. 2 reflects such changes. This document format, including references to Pioneer’s Implementation Plan (filed with the Commission on July 31, 2017 and certified by the Commission in October 31, 2017), addresses all requirements identified 4 December 2022 – Addendum No. 2
in Public Utilities Code Section 366.2(c)(4), including universal access, reliability, equitable treatment of all customer classes and any requirements established by state law or by the CPUC concerning aggregated service, while streamlining public review of pertinent changes related to Pioneer’s anticipated expansion. The original Implementation Plan and Addendum No. 1 are attached hereto as Appendices E and F.
CHAPTER 2 – CHANGES TO ADDRESS PIONEER EXPANSION TO THE CITIES OF
GRASS VALLEY AND NEVADA CITY
As previously noted, this Addendum No. 2 addresses the anticipated impacts of Pioneer’s planned expansion to the cities of Grass Valley and Nevada City, as well as other forecast modifications reflecting recent historical electric energy use within Pioneer’s existing service territory. As a result of these member additions, certain assumptions regarding Pioneer’s future operations have changed, including customer energy requirements, peak demand, expected renewable energy purchases, revenues, expenses, and various other items. The following section highlights pertinent changes related to this planned expansion. To the extent that certain details related to membership expansion are not specifically discussed within this Addendum No. 2, Pioneer represents that such information shall remain unchanged relative to its previously certified Implementation Plan
With regard to the defined terms Members and Member Agencies, the following Communities are now signatories to the Pioneer Joint Powers Agreement and represent Pioneer’s current membership:
Member Agencies
City of Auburn Town of Loomis
City of Colfax City of Nevada City
County of El Dorado County of Placer
City of Grass Valley City of Placerville
City of Lincoln City of Rocklin
Throughout this document, use of the terms Members and Member Agencies refer to the aforementioned Communities. To the extent that the discussion herein addresses the process of aggregation and Pioneer organization, each of these communities is now a Pioneer Member and the electric customers of such jurisdictions have been or will be offered CCA service consistent with the phase-in schedule described below.
Aggregation Process
Pioneer’s aggregation process was discussed in Chapter 2 of Pioneer’s July 31, 2017 Implementation Plan. The following verbiage is added to the bottom of the first sub-section, “Introduction”, of Chapter 2:
5 December 2022 – Addendum No. 2
Since Pioneer commenced service on February 1, 2018, additional communities have requested membership in Pioneer’s organization, including the cities of Grass Valley and Nevada City. The impacts of these prospective member additions were evaluated with results communicated at various public meetings. Based on the results of such evaluations and subsequent actions taken by Pioneer’s Governing Board, the cities of Grass Valley and Nevada City were added as Member Agencies. Future membership requests will be similarly evaluated before related action is taken by Pioneer’s Governing Board.
The following verbiage shall replace the first paragraph in the second sub-section, “Process of Aggregation”, of Chapter 2:
Pioneer successfully launched its CCA Program on February 1, 2018 after meeting applicable statutory requirements and in consideration of planning elements described in its Implementation Plan. At this point in time, Pioneer plans to expand agency membership to include the cities of Grass Valley and Nevada City, which have requested to be Pioneer members.
Such requests were subsequently approved by Pioneer’s Governing Board at a duly noticed public meeting on September xx, 2022. Before a new customer is enrolled in the CCA Program, such customer will receive two written notices in the mail from Pioneer that will provide information needed to understand the CCA Program’s terms and conditions of service and explain how customers can opt-out of the CCA Program, if desired. All customers that do not follow the opt-out process specified in the customer notices will be automatically enrolled, and service will begin at their next regularly scheduled meter read date, no later than thirty days following the date of automatic enrollment, subject to the CCA Program enrollment plan described in Chapter 5. Initial enrollment notices will be provided to subsequent customers consistent with statutory requirements and based on schedule(s) determined by Pioneer. These notices will be sent to customers twice within 60 days of automatic enrollment.
Program Enrollment
Program phase-in was discussed in Chapter 5 of Pioneer’s Implementation Plan. Chapter 5 is replaced in its entirety with the following verbiage:
Pioneer will continue to phase-in customers of its CCA Program as communicated in this Implementation Plan. To date, three phases have been successfully implemented with a fourth phase expected to commence in January 2024, including service commencement to customers located within the cities of Grass Valley and Nevada City, as reflected in the following table. 6 December 2022 – Addendum No. 2
Pioneer Phase
No.
Status & Description of Phase Implementation
Date
Phase 1:
78,000 Accounts
Complete: Residential, commercial, agricultural, and
street lighting accounts within the Cities of Auburn,
Colfax, Lincoln, Rocklin, the Town of Loomis, and the
Unincorporated areas of Placer County
February 2018
Phase 2:
14,000 Accounts
Complete: Additional net energy metered accounts
enrolled bimonthly in accordance with annual NEM
true-up periods, within Pioneer’s original Member
Agencies
July 2018 -
July 2019
Phase 3:
68,000 Accounts
Complete: Residential, commercial, agricultural, and
street lighting accounts within El Dorado County and
the City of Placerville
January 2022-
November 2022
Phase 4:
10,000 Accounts
Pending Implementation Plan Certification:
Residential, commercial, agricultural, and street lighting accounts within the cities of Grass Valley and Nevada
City
January 2024
*Net Energy Metered (NEM) accounts within the cities of Grass Valley and Nevada City will be enrolled over the course of a 12-month period that is expected to commence during the month of January 2024. Such NEM enrollments will be sequenced to promote alignment with each prospective NEM customer’s typical annual true-up date, minimizing the potential for unexpected bills/charges at the time of transition to Pioneer service. Enrollment of all other customers (non-NEM accounts) is expected during the month of January 2024.
Following completion of Phase 4 customer enrollments, Pioneer expects to serve a customer base approximating 169,000 accounts. Pioneer’s Governing Board may evaluate other phase-in options based on future market conditions, statutory requirements, and regulatory considerations as well as other factors potentially affecting the integration of additional customer accounts. To the extent that additional customers require enrollment after the completion of Phase 4, Pioneer will evaluate subsequent phase-in options after such remaining customers have been identified.
Sales Forecast
With regard to Pioneer’s sales forecast, which is addressed in Chapter 6, Load Forecast & Resource Plan, Pioneer assumes that total annual retail sales will increase to approximately 1,890 GWh following the completion of Phase 4 expansion. The following tables reflect the impacts of planned expansion related to Pioneer’s new Member Agencies, which include the recent additions of the cities of Grass Valley and Nevada City and replace all previous load forecast and resource planning tables within Chapter 6.
7 December 2022 – Addendum No. 2
Chapter 6, Resource Plan Overview
Chapter 6, Customer Forecast
Chapter 6, Sales Forecast
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Pioneer Demand (GWh)
Retail Demand -927 -1,089 -1,135 -1,097 -1,738 -1,790 -1,894 -1,908 -1,924 -1,935 -1,947 -1,959 -1,969 Distributed Generation 0 0 0 0 0 0 2 4 6 8 10 12 12
Energy Efficiency 0 0 0 0 0 0 2 5 10 10 10 10 10
Losses and UFE -56 -65 -68 -66 -104 -107 -113 -114 -115 -115 -116 -116 -117 Total Demand -982 -1,154 -1,203 -1,163 -1,843 -1,898 -2,003 -2,013 -2,023 -2,033 -2,043 -2,054 -2,064 Pioneer Supply (GWh)
Renewable Resources
Generation 0 0 0 0 0 0 0 0 0 0 0 0 0
Power Purchase Contracts 269 338 375 392 668 736 828 883 939 996 1,053 1,110 1,168 Total Renewable Resources 269 338 375 392 668 736 828 883 939 996 1,053 1,110 1,168 Conventional Resources
Generation 0 0 0 0 0 0 0 0 0 0 0 0 0
Power Purchase Contracts 714 817 829 771 1,175 1,162 1,175 1,130 1,084 1,038 991 944 896 Total Conventional Resources 714 817 829 771 1,175 1,162 1,175 1,130 1,084 1,038 991 944 896 Total Supply 982 1,154 1,203 1,163 1,843 1,898 2,003 2,013 2,023 2,033 2,043 2,054 2,064 Energy Open Position (GWh) 0 0 0 0 0 0 0 0 0 0 0 0 0
Pioneer Community Energy
Proposed Resource Plan
(GWH)
2018 to 2030
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Pioneer Customers
Residential 74,845 80,349 81,237 81,643 138,591 139,284 147,000 147,735 148,474 149,216 149,962 150,712 151,465 Commercial & Industrial 9,662 9,931 9,833 9,882 17,074 17,159 19,396 19,493 19,590 19,688 19,787 19,886 19,985 Street Lighting & Traffic 1,141 1,124 1,141 1,147 1,810 1,819 1,960 1,970 1,980 1,990 1,999 2,009 2,020 Ag & Pumping 443 460 489 491 884 888 893 897 902 906 911 916 920 Total 86,091 91,864 92,700 93,164 158,359 159,150 169,249 170,095 170,946 171,800 172,659 173,523 174,390 Pioneer Community Energy
Retail Service Accounts (End of Year)
2018 to 2030
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Pioneer Energy Requirements (GWh)
Retail Demand 927 1,089 1,135 1,097 1,738 1,790 1,894 1,908 1,924 1,935 1,947 1,959 1,969 Distributed Generation 0 0 0 0 0 0 -2 -4 -6 -8 -10 -12 -12 Energy Efficiency 0 0 0 0 0 0 -2 -5 -10 -10 -10 -10 -10 Losses and UFE 56 65 68 66 104 107 113 114 115 115 116 116 117 Total Load Requirement 982 1,154 1,203 1,163 1,843 1,898 2,003 2,013 2,023 2,033 2,043 2,054 2,064 Pioneer Community Energy
Energy Requirements
(GWH)
2018 to 2030
8 December 2022 – Addendum No. 2
Chapter 6, Capacity Requirements
Pioneer replaces the “Capacity Requirements” sub-section of Chapter 6 as follows:
The CPUC’s resource adequacy standards applicable to the CCA Program require a demonstration one year in advance that Pioneer has secured physical capacity for 90 percent of its projected peak loads for each of the five summer months, May through September, plus a minimum 16 percent reserve margin. On a month-ahead basis, Pioneer must demonstrate 100 percent of the peak load plus a minimum 16 percent reserve margin.
Pioneer is also required to demonstrate that a specified portion of its capacity meets certain operational flexibility requirements under the CPUC and CAISO’s flexible resource adequacy framework.
Pioneer’s plan ensures that sufficient reserves will be procured to meet its peak load at all times. Pioneer’s projected annual capacity requirements are shown in the following table:
Pioneer will coordinate with PG&E and appropriate state agencies to manage the transition of responsibility for resource adequacy from PG&E to Pioneer prior to CCA Program enrollment of new Members. Pioneer will make year-ahead and month-ahead resource adequacy showings for each month that Pioneer plans to serve load, and load migration issues would be addressed through the CPUC’s approved procedures. Pioneer will work with the California Energy Commission and CPUC prior to commencing service to customers to ensure it meets its system resource adequacy obligations through its agreement(s) with its chosen electric supplier(s).
Chapter 6, Renewables Portfolio Standards Energy Requirements
*Retail sales, net of distributed generation and energy efficiency impacts. 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Demand (MW)
Total Retail Demand 260 249 260 301 505 456 483 485 488 490 493 495 498 Losses and UFE 2 15 16 18 30 27 29 29 29 29 30 30 30
Total Net Peak Demand 276 264 276 319 536 484 512 515 517 520 522 525 528 Reserve Requirement (%) 15% 15% 15% 15% 15% 16% 16% 16% 16% 16% 16% 16% 16% Capacity Reserve Requirement 41 40 41 48 80 77 82 82 83 83 84 84 84 Capacity Requirement Including Reserve 317 304 317 367 616 561 594 597 600 603 606 609 612 Pioneer Community Energy
Capacity Requirements
(MW)
2018 to 2030
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total Retail Sales (MWh)* 926,829 1,089,009 1,135,234 1,097,030 1,738,431 1,790,128 1,889,695 1,899,143 1,908,639 1,918,182 1,927,773 1,937,412 1,947,099 RPS Procurement Quantity Requirement (%) 29% 31% 33% 36% 38% 41% 44% 47% 49% 52% 55% 57% 60% Gross RPS Procurement Quantity
Requirement (MWh)
RPS Requirements
(MWH)
2018 to 2030
268,780 337,593 374,627 391,640 667,558 735,742 827,686 883,102 939,050 995,537 1,052,564 1,110,137 1,168,259 Pioneer Community Energy
9 December 2022 – Addendum No. 2
Financial Plan
With regard to Pioneer’s financial plan, which is addressed in Chapter 7, Financial Plan, Pioneer has updated its expected operating results, which now include projected impacts related to service expansion within the cities of Grass Valley and Nevada City. The following table reflects updated operating projections in consideration of this planned expansion.
Chapter 7, CCA Program Operating Results
Expansion Addendum Appendices
Appendix A: Pioneer Community Energy Resolution No. xxxxxx Appendix B: Pioneer Joint Powers Agreement
Appendix C: City of Grass Valley CCA Ordinance
Appendix D: City of Nevada City CCA Ordinance
Appendix E: Pioneer Community Energy Implementation Plan and Statement of Intent (July 31, 2017)
Appendix F: Pioneer Community Energy Implementation Plan and Statement of Intent Addendum 1 (December 17, 2020)
CATEGORY 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 I. REVENUES FROM OPERATIONS ($)
ELECTRIC SALES REVENUE 24,734 72,205 78,705 84,349 123,241 202,678 210,494 216,316 211,337 207,366 186,367 188,448 191,506 LESS UNCOLLECTIBLE ACCOUNTS 123 359 779 2,494 1,359 1,997 2,084 2,142 2,092 2,053 1,845 1,866 1,896 TOTAL REVENUES 24,611 71,846 77,926 81,855 121,883 200,681 208,410 214,174 209,245 205,313 184,522 186,582 189,610 II. COST OF OPERATIONS ($)
(A) ADMINISTRATIVE AND GENERAL (A&G) 3,048 4,367 4,976 5,604 7,217 11,002 12,856 13,289 13,712 14,144 14,568 15,005 15,455 (B) COST OF ENERGY 15,449 63,195 63,933 73,862 100,746 149,977 162,328 164,133 170,568 164,615 160,728 162,248 164,675 (C) DEBT SERVICE 3,583 715 4,317 300 921 3,656 3,306 3,056 1,581 - - - - TOTAL COST OF OPERATION 22,081 68,278 73,226 79,766 108,884 164,635 178,490 180,478 185,861 178,759 175,296 177,253 180,130 CCA PROGRAM SURPLUS/(DEFICIT) 2,531 3,568 4,700 2,089 12,999 36,046 29,920 33,696 23,383 26,554 9,226 9,329 9,481 (January 2018 through June 2030)
Pioneer Community Energy
Summary of CCA Program Phase-In
-
Staff Report – Item 4
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 4: Receive Quarterly Financial Reports Through September 2022 Date: 11/17/2022
ACTION REQUESTED
Receive Quarterly Financial Reports through September 2022.
BACKGROUND
The Year-To-Date (YTD) financial reports are produced by Maher Accountancy for Board member and management review. Although these reports are unaudited, they provide the most up-to-date financial data for Pioneer Community Energy. The mPOWER program accepted its last application August 2021 and mPOWER activity is now limited to the administering the outstanding mPOWER Bonds. Financials for the mPOWER program will be included in the audited year end reports. For September 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 for the first quarter (Jul – Sep) of FY 2022-23.
FY 2022-23 FY 2022-23 Variance
$ in Thousands YTD Budget YTD Actuals (Under)/Over
Energy Revenue $63,697 $66,293 $2,596
Power Supply $51,128 $59,593 $8,465
Operating Margin $12,570 $6,700 ($5,869)
Operating Expense $2,775 $2,127 ($648)
Debt Service & Other ($459) ($172) $287
Contribution
To/(From)
Reserves $9,335 $4,400 ($4,935)
fJONEER
COMMUNITY ENERGY
Agenda Item: 4 Agenda Date: 11/17/2022
The Budget for Fiscal Year 2022-23 was a balanced budget with a contribution towards Net Position (Reserve).
The Reserve Policy established a minimum target of 160 days of cash liquidity and that target is anticipated to be achieved during Fiscal Year 2023-24. As the Board is aware, the energy market is volatile and large swings in costs can occur frequently. A recent example of energy cost volatility is the heat wave during September 2022 that required Pioneer to acquire energy over and above its hedged position through the California Independent System Operator (CAISO).
Despite the hot summer season naturally being a higher cost, higher usage, and higher revenue period for Pioneer than other quarters of the year, the September heat wave was extreme in both its consistent elevated temperatures and its duration and ultimately had a negative impact on Pioneer’s net position and the YTD budget comparison.
Energy Revenues
The YTD actuals show $2.6 million more revenue than expected compared to the FY 2022-23 Budget. Although this is a positive direction and an improvement over August YTD revenue shortfall, the revenue is primarily driven by increased usage during September’s extreme weather and still falls significantly short of covering the increased power cost incurred.
Power Supply
The YTD actuals show $8.5 million or 17% more expense than expected compared to the FY 2022-23 Budget, driven primarily by higher energy costs during the September heat wave. Like Energy Revenues, this budget overage reverses the energy cost savings that were reported with August’s YTD report.
Operating Expenses
The YTD actuals show $0.6 million less expense than expected compared to the FY 2022-23 Budget. Operating expenses are not evenly distributed over the course of a fiscal year, and it is expected that this difference will moderate over the course of the year.
Debt Service and Other
The Debt Service actuals are in line with expectations, while interest earnings are exceeding expectations as interest rates continue to increase. The Line of Credit and Letter of Credit costs are anticipated to be incurred during the upcoming quarter.
Contribution to Net Position and Reserves
Although the Budget anticipated a significant contribution to Net Position at the end of Fiscal Year 2022-23, that contribution is currently falling $4.9 million below expectations. The Reserve policy adopted during the Fall 2021 established a minimum cash liquidity target of 160 days and a 3-to-5-year timeline to achieve that target. The expectation, barring extreme weather events, is that Pioneer could achieve that minimum target during fiscal year 2023-24. The importance of achieving the Reserve Policy minimum is emphasized by September’s extreme weather, which dramatically impacted Pioneer’s cash liquidity. In a one-week period, Pioneer’s cash position went from over 94 days of liquidity to just 29 days. Fortunately, since that low point, Pioneer has experienced steady improvement in its cash position.
STRATEGIC PLAN
Strategic Priority 5: Financial Stability & Strategic Growth
FISCAL IMPACT
The report provides an update on Pioneer’s financial activity through September 2022.
ATTACHMENTS
1. Financial Reports through September 30, 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 September 30, 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
October 27, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com MAHER
ACCOUNTANCY
CCA Fund
ASSETS
Current assets
Cash and cash equivalents 13,413,631 $
Investments 9,368,074
Accounts receivable, net of allowance 27,024,038
Accrued revenue 10,539,551
Other receivables 1,302,029
Interest receivable 20,000
Prepaid expenses 16,753
Deposits 6,248,957
Total current assets 67,933,033
LIABILITIES
Current liabilities
Accrued cost of energy 16,315,873
Accounts payable 415,740
Other accrued liabilities 338,459
Interest payable 31,437
Deposits 209,057
Note payable 555,301
Total current liabilities 17,865,867
Noncurrent liabilities
Note payable 9,243,332
Total noncurrent liabilities 9,243,332
Total liabilities 27,109,199
NET POSITION
Unrestricted net position 40,823,834
Total net position 40,823,834 $
PIONEER COMMUNITY ENERGY
STATEMENT OF NET POSITION
As of September 30, 2022
CCA FUND
See accountants' compilation report. 2
CCA Fund
OPERATING REVENUES
Electricity sales, net 65,427,778 $
Total operating revenues 65,427,778
OPERATING EXPENSES
Cost of electricity 58,727,646
Contract services 1,260,074
Staff compensation 706,759
General and administration 160,367
Total operating expenses 60,854,846
Operating income (loss) 4,572,932
NONOPERATING REVENUES (EXPENSES)
Investment gains (losses) 57,945
Interest and financing expense (96,848)
Nonoperating revenues (expenses), net (38,903)
CHANGE IN NET POSITION 4,534,029
Net position at beginning of period 36,289,805
Net position at end of period 40,823,834 $
PIONEER COMMUNITY ENERGY
Three Months Ended September 30, 2022
AND CHANGES IN NET POSITION
STATEMENT OF REVENUES, EXPENSES
CCA FUND
See accountants' compilation report. 3
Participation Rate by TOT July 2022 August 2022 September 2022 AUBURN INC 86.55% 86.55% 85.91%
COLFAX INC 89.12% 89.12% 88.61%
LINCOLN INC 85.17% 85.17% 83.64%
LOOMIS INC 89.65% 89.65% 89.03%
PLACERVILLE INC 85.75% 85.75% 85.80%
ROCKLIN INC 92.33% 92.33% 91.46%
UNINC EL DORADO CO 78.44% 78.44% 78.12%
UNINC PLACER CO 86.43% 86.43% 85.59%
Grand Total 84.29% 84.29% 83.54%
fJONEER
COMMUNITY ENERGY
5 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 September 30, 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
October 27, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com MAHER
ACCOUNTANCY
2022/23 YTD
Amended
Budget
2022/23 YTD
Actual
2022/23 YTD
Amended
Budget
Variance
(Under) Over
2022/23
YTD
Actual/
Amended
Budget %
2022/23
Amended
Budget
2022/23
Amended
Budget
Remaining
ENERGY REVENUES
Energy Sales $ 66,295,439 63,405,631 $ 2,889,809 $ 105% 199,630,000 $ 133,334,561 $ Green100 Sales 14,579 7,536 52% (7,043) 48,000 40,464
Congestion Revenue Rights 865,262 911,186 (45,924) 95% 3,000,000 2,134,738 Less Uncollectible Accounts (875,199) (634,202) (240,997) 138% (1,996,780) (1,121,581) Total Operating Revenues 66,293,038 63,697,194 2,595,844 200,681,220 134,388,182
ENERGY EXPENSES
Power Supply 59,592,908 51,127,596 8,465,312 117% 149,977,000 90,384,092 OPERATING MARGIN 6,700,130 12,569,598 (5,869,468) 50,704,220 44,004,090
OPERATING EXPENSES
Administration
Compensation 128,757 141,563 (12,806) 91% 566,252 437,495 Contract services 70,331 34,044 48% (36,287) 431,325 397,281 Operating expenses 124,294 194,769 (70,475) 64% 656,225 531,931 Total Administration expenses 287,095 406,663 (119,568) 1,653,802 1,366,707 Finance
Compensation 181,071 186,383 (5,312) 97% 745,530 564,459 Contract services 74,243 232,825 (158,582) 32% 603,350 529,107 Operating expenses 49,496 86,833 175% 37,337 197,983 111,150 Total Finance expenses 342,147 468,703 (126,556) 1,546,863 1,204,716 Power Procurement
Compensation 148,595 204,472 (55,876) 73% 817,886 669,291 Contract services 306,323 275,107 31,216 111% 1,285,426 979,103 Operating expenses 17,863 2,447 14% (15,415) 35,450 33,003 Total Power Procurement expenses 457,365 497,441 (40,075) 2,138,762 1,681,397 Customer Care
Compensation 102,660 106,889 (4,230) 96% 427,557 324,897 Contract services 644,995 723,753 (78,758) 89% 2,895,012 2,250,017 Operating expenses 6,316 - (6,316) 0% 25,263 25,263
Total Customer Care expenses 747,655 836,958 (89,303) 3,347,832 2,600,177 Marketing & Communications
Compensation 66,097 21,905 33% (44,192) 264,388 242,483 Contract services 65,505 101,109 65% (35,604) 546,240 480,735 Operating expenses 60,763 45,690 75% (15,073) 243,050 197,360 Total Marketing expenses 133,099 227,968 (94,869) 1,053,678 920,579 Legislative & Regulatory
Compensation 90,388 136,662 66% (46,274) 546,649 456,261 Contract services 88,452 39,543 45% (48,909) 353,808 314,265 Operating expenses 1,313 7,677 585% 6,364 5,250 (2,427) Total Legislative expenses 137,608 226,427 (88,819) 905,707 768,099 Programs
Compensation 63,080 21,710 34% (41,370) 252,320 230,610 Contract services 46,818 - (46,818) 0% 100,000 100,000
Operating expenses 875 520 (355) 59% 3,500 2,980
Total Programs expenses 22,230 110,773 (88,543) 355,820 333,590 Total Operating Expenses 2,774,933 2,127,199 (647,733) 11,002,464 8,875,265
NON-OPERATING REVENUES (EXPENSES)
Investment gains (losses) 18,750 57,945 309% 39,195 75,000 17,055 Term Loan Debt Service (230,213) (237,501) 7,288 97% (540,000) (309,787) Additional Term Loan Principal - - - (2,100,000) (2,100,000) Line/Letter of Credit Fees - 62,500 0% (62,500) (250,000) (250,000) Financial Security Requirement - 178,000 (178,000) 0% (356,000) (356,000) Nonoperating revenues (expenses), net (172,268) (459,251) 286,983 (3,171,000) (2,998,732) Total Expenses (Energy, Operating, Non-Operating) 54,361,780 61,892,375 7,530,595 164,150,464 102,258,089 Contribution to/(from) Reserves 9,335,414 $ 4,400,663 $ (4,934,751) $ 36,530,756 $ 32,130,093 $
BUDGETARY COMPARISON SCHEDULE
Three Months Ended September 30, 2022
PIONEER COMMUNITY ENERGY
CCA FUND
Staff Report – Item 5
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 5: California Arrearage Payment Program (CAPP) 2.0 Update Date: 11/17/2022
RECOMMENDATION
Receive an update on the California Arrearage Payment Program (CAPP).
BACKGROUND
California established CAPP in the 2021-22 State Budget, which was created to offer financial assistance for California energy utility customers to help reduce past due energy bill balances accrued during the COVID-19 pandemic. The CAPP funding targeted delinquent bills that were generated from early March 2020 through June 15, 2021. Pioneer participated in CAPP and Pioneer customers received bill credits of almost $1.4 million dollars.
Although the program successfully delivered relief to pandemic-impacted customers, the arrearages for utility customers statewide were and continue to be significant. As a result, the State implemented a second CAPP, or “CAPP 2.0,” in the 2022-23 State Budget. $957 million in funding has been appropriated statewide for Investor-Owned Utilities and Community Choice Aggregators and will be distributed proportionately based on arrearage data supplied in the utilities’ CAPP 2.0 applications.
CAPP 2.0 provides bill relief to active residential customers with arrearages that accumulated between early March 2020 through December 31, 2021, extending the original eligible CAPP period by over six months.
Customers are protected from disconnections during the time between the utility’s CAPP application submittal date through 90 days after the CAPP benefit is applied to a customer’s bill. Customers with any remaining balances after the application of the CAPP 2.0 benefit must be offered the option of a payment plan.
Pioneer is participating in the CAPP 2.0 program and has worked with the State, PG&E and Calpine to compile the required data that would release funding to eligible Pioneer customers. The application and data were submitted in October, and the State will be releasing funds during January 2023. The credits are anticipated to be applied shortly after the funds are received from the State.
ANALYSIS & DISCUSSION
Pioneer’s CAPP 2.0 application data submitted was for $1,096,070.82 and would benefit 3,736 residential accounts. The allocation of funds that will be received by the State is dependent on the arrearage totals submitted from all utilities. If the arrearage total exceeds the available funding, the allocation of the funding to each utility will be proportional. Therefore, it is unknown at this time how much bill relief Pioneer customers may receive, but it won’t exceed the application submittal of $1,096,070.82.
STRATEGIC PLAN
Strategic Priority 5: Financial Stability & Strategic Growth Pioneer operates in a manner that ensures financial stability and delivers customer value.
fJONEER
COMMUNITY ENERGY
Agenda Item: 5 Agenda Date: 11/17/2022
FISCAL IMPACT
Potentially 3,736 Pioneer customers could receive bill relief of almost $1.1 million for electricity arrearage amounts generated during the COVID-19 pandemic. These customers are also likely eligible to receive bill relief from PG&E for non-generation costs accrued during the COVID-19 pandemic. Since the CAPP 2.0 will provide bill relief for both Pioneer and PG&E eligible charges, customers should realize significant bill assistance. This bill relief funding comes from the State of California CAPP 2.0 program and will reduce Pioneer’s outstanding accounts receivable by the same amount.
ATTACHMENTS
1) None
Staff Report – Item 6
To: The Governing Board
From: Don Eckert, Executive Director
Item 6: Adopt Resolution Commending Vice Chair Duncan for His Dedicated Service to Pioneer Community Energy
Date: 11/17/2022
RECOMMENDATION
Adopt Resolution commending Vice Chair Duncan for his dedication and outstanding service in directing Pioneer Community Energy (“Pioneer”).
BACKGROUND
As a Councilmember for the Town of Loomis, Vice Chair Duncan has been involved in the direction of Pioneer since its launch and assumed his current role of Vice Chair in 2021. Vice Chair Duncan also serves on the Audit & Finance Committee since its inception in 2020 and is a current member of the Energy Procurement Review Committee since 2021.
ANALYSIS & DISCUSSION
Vice Chair Duncan has demonstrated outstanding commitment, representation, and leadership for Pioneer and its ratepayers.
STRATEGIC PLAN
The recommendation commends Vice Chair Duncan for his leadership and guidance in Pioneer’s development and implementation of Pioneer’s inaugural strategic plan.
FISCAL IMPACT
There is no fiscal impact with the recommendation.
ATTACHMENTS
1. Resolution in appreciation of Vice Chair Jeff Duncan for outstanding service to Pioneer Community Energy 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 November 17, 2022, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, Pioneer Community Energy is a Community Choice Aggregation Program serving the cities of Auburn, Colfax, Lincoln, Rocklin, and Placerville, the town of Loomis, and unincorporated Placer and El Dorado County; and
WHEREAS, Town of Loomis Councilmember Jeff Duncan became a Pioneer Community Energy Governing Board member in December 2017; and
WHEREAS, Jeff Duncan began serving as Vice Chair of the Pioneer Community Energy Governing Board since 2021; and
WHEREAS, Jeff Duncan has served on the Pioneer Community Energy Audit & Finance Committee since its inception in August 2020 and the Energy Procurement Review Committee since April 2021; and
WHEREAS, Jeff Duncan has provided outstanding leadership, representation, and guidance for the ratepayers and staff of Pioneer Community Energy.
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 commends Jeff Duncan for his dedication and outstanding public service in directing Pioneer Community Energy.
3. This Resolution shall take effect immediately upon its adoption.
In the matter of: RESOLUTION IN APPRECIATION
OF VICE CHAIR JEFF DUNCAN FOR OUTSTANDING
SERVICE TO PIONEER COMMUNITY ENERGY
Staff Report – Item IV-B
To: The Governing Board
From: Don Eckert, Executive Director
Item IV-B: Executive Director Report
Date: 11/17/2022
REPORT
Personnel
Pioneer is currently recruiting for the Programs Manager and Sr. Manager of Quantitative Analysis and Modelling.
Mountain Mandarin Festival
Pioneer will have a booth throughout the three-day event and staff is appreciative of the opportunity to participate.
Executive Director Agreements Executed
The following agreements have been executed by the Executive Director, consistent with the authority delegated by the Board:
• Aprea & Micheli, Lobbyist Services, Not-to-Exceed $49,800, Term begins November 1, 2022 – Completion of Scope
Oversight of Fast-Trip Outage Programs
In the past two years, Pioneer’s service territory has been disproportionately impacted by the Fast-Trip Outage Program. While the Public Safety Power Shutoff (“PSPS”) events have significantly decreased, mostly due to increased oversight by the California Public Utilities Commission (“CPUC”), the new Fast-Trip Program has quietly exceeded the number of customers impacted by Pacific Gas & Electric’s largest PSPS outages from 2019.
Pioneer joined East Bay Community Energy, Sonoma Clean Power, Marin Clean Energy, and the Rural County Representatives of California in filing a motion to scrutinize the large electric utilities’ fast-trip outage programs and impose a more intense regulatory oversight as was done with the PSPS program. Please see Attachment 5 as reference of a letter to the President of the CPUC and endorsed by key legislators demanding action on this issue.
Net Energy Metering (“NEM”) Tariff Update
Please see Attachment 6 of a press release from the CPUC on proposed changes to the NEM Program. Staff will be acquiring more information on this issue and how it impacts our ratepayers and apprise the Board at the December meeting.
Resource Adequacy (“RA”) Activity
There are two types of RA filing: Annual filing (due by the end of October) and monthly filings. For the annual filings, Pioneer is required to make an annual System, Local, and Flexible compliance showing for the coming year. For the System showing, each Pioneer is required to demonstrate that it has procured 90% of its System RA obligation for the five summer months of the coming compliance year. Additionally, Pioneer has a three-year fJONEER
COMMUNITY ENERGY
Agenda Item: IV-B Agenda Date: 11/17/2022
forward local obligation and must meet 100% of its local requirement for the years one and two and 50% of for year three. Finally, Pioneer must demonstrate that it meets 90% of its Flexible RA obligation for all twelve months. October is the due date for the annual filing resulting in higher than usual power procurement activity for the month.
Executive Director Power Supply Contracts Executed
The following agreements have been executed by the Executive Director, consistent with the authority delegated by the Board:
Presentations and Relevant Meetings attended by the Executive Director
1. Participated n CalCCA Weekly/Monthly Board meetings
2. Participated in meeting with Senate Candidate Roger Niello
3. Presented at Nevada City Council meeting about joining the JPA
4. Participated in the CCCFA meeting in support of the prepay transaction
5. Attended Rocklin City Council meeting for support of Amendment to the JPA for expansion
ATTACHMENTS
1. Agenda Planning Document
2. Monthly Legislative and Regulatory Update
3. Monthly Marketing and Public Outreach Report
4. Minutes from most recent Community Advisory Programs Committee
5. Letter to the President of the CPUC Regarding Oversight of the Fast-Trip Outage Program
6. Press Release from the CPUC on Net Energy Metering Proposed Changes Counterparty Name
Execution
Date Type Product Start Date End Date Notional Value
San Francisco Public Utilities Commission 10/20/2022 Buy Resource Adequacy - System 3/1/2023 4/1/2023 $320,000 San Francisco Public Utilities Commission 10/20/2022 Buy Resource Adequacy - Local 1/1/2023 12/1/2023 $1,625,000 Southern California Edison Company 10/24/2022 Sell Resource Adequacy - Local 7/1/2023 8/1/2023 $1,149,500 Southern California Edison Company 10/24/2022 Sell Resource Adequacy - System 6/1/2023 6/1/2023 $195,000 Southern California Edison Company 10/24/2022 Sell Resource Adequacy - Local 7/1/2023 8/1/2023 $899,965 Morgan Stanley Capital Group 10/27/2022 Sell Resource Adequacy - System 5/1/2023 10/1/2025 $5,701,500 Agenda Planning Document – Pioneer Community Energy Updated 11/10/2022 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
BOARD OF
DIRECTORS
NOVEMBER 17, 2022
3:00 PM
(Post Agenda: NOV 10)
DECEMBER 15, 2022
3:00 PM
(Post Agenda: DEC 9)
JANUARY 19, 2023
3:00 PM
(Post Agenda: JAN 13)
IN THE FUTURE
(TBD) Special Meeting- CAISO facility tour
(2023) Special Meeting- Board Orientation
Closed Session
(time)
Public Employee Performance Evaluation - GC
§54957 Title: Executive Director
Conference with Labor Negotiators - GC
§54957.6 Agency Negotiator: Board Chair
Unrepresented Employee: Executive Director
General Function I Agenda Review Agenda Review Agenda Review Consent
1a
Approve meeting minutes
SEP 15 & OCT 20, 2022 (Action - Eckert)
Approve meeting minutes
NOV 17, 2022 (Action - Eckert)
Approve meeting minutes
DEC 15, 2022 (Action - Eckert)
(FEB) By-Laws Article V, Section 5.2
1b MONTHLY – reaffirm Pioneer AB 361
Remote Meeting Continuation
Findings & receive Leg/Reg update
(Action – Eckert) GC
MONTHLY – reaffirm Pioneer AB 361
Remote Meeting Continuation Findings
& receive Leg/Reg update (Action – Eckert) GC
MONTHLY – reaffirm Pioneer AB 361
Remote Meeting Continuation Findings
& receive Leg/Reg update (Action – Eckert) GC
RE: AB 361 Remote Meeting Continuation
Findings
1c Receive Draft Financials: October 2022
(Koehn)
Receive Draft Financials: November
2022 (Koehn)
1d Board Meeting Schedule 2023 (Action – Eckert)
1e Elect-C Rate (Riffey)
1f
Regular
2 RES approving JPA Amendment No. 5
(Action - Eckert)
Audit Report (Koehn) – Pisenti & Brinker
(tentative or move to January)
Selection of Chair and Vice Chair
(Action – Eckert)
(FEB) Affirm Committee Members (Eckert)
(FEB) Customer Participation (Riffey)
3 RES approving Implementation Plan
Addendum No. 2 (Action - Eckert) PEA
Receive Report & Presentation from
Community Programs Advisory
Committee (Discussion - Riffey)
Biomass Presentation (Discussion –
Kang)
(FEB) JPA amendment re: expansion
process
(FEB) JPA amendment re: Board Member
criteria
4 Quarterly financials ending
September 2022 (Action – Koehn)
Rates Discussion (Discussion - Eckert) Legislative Bill proposals (Discussion – Kang)
(FEB) mid-year budget
(FEB) Programs discussion/funding
(FEB) Customer Survey Results
5 CAPP 2.0 update (Discussion - Koehn) RES authorizing bill forgiveness to Pioneer customers whose residences
were destroyed in the Mosquito Fire
(Action - Eckert)
PSPS/EPSS update & Regulatory
activity (Discussion – Riffey)
Prepay Transaction
(JAN) Updates to Pioneer’s Brand
6 RES in appreciation of Vice Chair
Duncan for outstanding service to
Pioneer (Action - Eckert)
Post-State of Emergency meeting
venue (Discussion – Eckert) GC
NEM 3.0 update
AG Rate Changes
Data Flow presentation
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
■
Agenda Planning Document – Pioneer Community Energy Updated 11/10/2022 C:\Users\TeresaWillock\Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates NOVEMBER 17, 2022 DECEMBER 15, 2022 JANUARY 23, 2023 IN THE FUTURE Regular (con’t)
7 RES approving Amendment No. 2 to
the Executive Director Employment
Agreement (Action – GC)
General Function II
IV-B
Executive Director’s Report
Reports: Leg/Reg; Community Engagement;
CPAC minutes – OCT;
Executive Director’s Report
Reports: Strategic Plan report; Leg/Reg;
Community Engagement; CPAC minutes –
NOV;
Executive Director’s Report
Reports: Strategic Plan report; Leg/Reg;
Community Engagement;
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
AUDIT/FINANCE COMMITTEE
DATE
TBD week of DEC 5
DATE
TBD prior to JAN 23 Board DATE IN THE FUTURE
Greg Janda, Chair
Jeff Duncan, Vice Chair
Dan Karleskint
Dennis Thomas
-Audit Report
-Rates Discussion
-Board Room improvements
-Audit Report 1st meeting of calendar year
Selection of Officers
COMMUNITY PROGRAMS
ADVISORY COMMITTEE
NOVEMBER 30, 2022
2:00 PM IN THE FUTURE
(7) Community Members
Geoff Mclennan, Chair
Glen Kramer, Vice Chair
Post agenda prior to W, 11/23
ENERGY PROCUREMENT
REVIEW
AD HOC COMMITTEE
DATE
TBD end of year > JAN DATE DATE IN THE FUTURE
John Hidahl, Chair
Alice Dowdin Calvillo, Vice Chair
Jeff Duncan
Greg Janda
1st meeting of calendar year
Selection of Officers
EXPANSION
AD HOC COMMITTEE
DECEMBER 14, 2022
1:00 PM DATE DATE IN THE FUTURE
Alice Dowdin Calvillo, Chair
Jim Holmes, Vice Chair
Dan Karleskint
-Proposed Community
Development Manager
-Map feedback on future
expansion
1st meeting of calendar year
Selection of Officers
By-Laws Article V, Section 5.3
Each committee shall on an annual
basis choose its officers, comprised of
a Chairperson and Vice-Chairperson
Ad Hoc Member Limit
fewer members than majority of board
(<5)
Ad Hoc Member Limit
fewer members than majority of board
(<5)
n
I I
I I
November 17, 2022 - Pioneer Community Energy Legislative and Regulatory Update Pioneer Community Energy Legislative and Regulatory Update November 17, 2022
Legislative Affairs
California Legislature and Capitol Update
The 2023-2024 Legislative Session will commence on December 5, 2022. New members of the Legislature will be sworn into office, new leadership in each house will be formed, and new legislation will be introduced.
There will be significant Legislator turnover in 2023, as a result of the November 8, 2022, General Election.
There will be Chair vacancies in both the Assembly Utilities and Energy Committee and the Senate Energy, Utilities, and Communications Committee that must be filled; in addition to the Chairs, several other vacancies in both committees must also be filled.
Additionally, on October 7, 2022, Governor Newsom called for a Special Legislative Session, to begin along with the Regular Session on December 5, 2022, to pass a new tax on oil company profits to address what he called “rank price gouging.” The dramatically increased gas prices due to continuing inflation and ongoing disruptions in the global supply chain disproportionately affect Californians, who, as of his announcement, were paying $2.58 more per gallon than the national average, according to AAA.
Finally, Governor Newsom, on October 17, 2022, announced the COVID-19 State of Emergency will end on February 28, 2023. Although the postponed ending date has been criticized, it seeks to allow flexibility to address any potential winter case surges and time to responsibly exit the emergency order.
Pioneer Legislative Update
Pioneer staff continues legislative engagement internally, with CalCCA, individual CCAs, and other stakeholders developing legislative ideas and policy strategies for the 2023-2024 Legislative Session. Pioneer staff will continue to independently engage, advocating with the Board, Member Agencies, and our Legislative Representatives on key legislative matters in the upcoming 2023 session.
Pioneer’s legislative efforts continue to focus on the issues of bioenergy and biomass, grid resiliency and reliability, Public Safety Power Shutoff (PSPS), Enhanced Powerline Safety Settings (EPSS) and wildfire mitigation, microgrid development, addressing Power Charge Indifference Adjustment (PCIA) volatility, and preparing to avoid and oppose potentially threatening bills. Pioneer staff will keep the board apprised as the 2023-2024 Legislative Session approaches and commences.
COMMUNITY ENERGY
November 17, 2022 - Pioneer Community Energy Legislative and Regulatory Update 2023 Bill Proposal Ideas
1. Extend or eliminate the sunset date of the BioMAT program. • The existing program sunsets in 2025.
• The CPUC is dragging along the implementation of AB 843 and by the time the program is in place there won’t be much of an opportunity for CCA’s to participate. • This is the proposal I would recommend submitting to CalCCA.
2. Allow CCAs to participate in the BioRAM contracts and ensure that the contract is for 10 years. • SB 901 extended the BioRAM contracts, so long as the contracts were not located in federal severe or extreme nonattainment areas for particulate matter or ozone. I need to find out which contracts those were and how many MW that included.
• SB 1190 extended the contracts again, but exempted contracts with a facility that declared bankruptcy and others that were in a contract with a facility that wasn’t delivering energy to its facilities.
3. Work with RCRC to facilitate the procurement of biomass that assists our local governments’ requirements to procure organic waste products.
• If SB 1383 could bring about new, small biomass facilities, Pioneer would have more opportunities to procure. It could also reduce the price since the local governments are receiving multi-benefits.
I would suggest this as a third proposal only if RCRC take the lead as sponsor.
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.22-10-010 Order Instituting Rulemaking (OIR)
to Implement AB 843 (2022) – The
Bioenergy Adjusting Tariff
Program
Expeditiously implement AB 843
to allow CCA access to the BioMAT
program for future subsidies for
biomass procurement and extend
sunset date indefinitely until all
MWs have been filled
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
Reduce the ERRA impact on the
PCIA; increase data transparency
from the IOUs
November 17, 2022 - Pioneer Community Energy Legislative and Regulatory Update Application
R.17-06-026 Power Charge Indifference
Adjustment
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
R.18-12-005 Utility De-energization, Public
Safety Power Shutoffs, and
Enhanced Powerline Safety
Settings
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
• AB 843 OIR:
o The OIR was opened on October 20, 2022, to examine the issues in the implementation of AB 843 which Pioneer and other CCAs championed in 2021. All CCAs are listed as Respondents to the Proceeding and have party status, so no additional actions, other than supplying the CPUC with a primary contact person by November 4, 2022, need to be taken to allow Pioneer to participate in the Proceeding. The preliminary schedule anticipates a Decision in Q3 2023.
There may be an opportunity in Opening Comments to push for a more aggressive schedule; Comments are due November 28, 2022. The OIR was discussed at CalCCA’s October 25, 2022, Regulatory Committee meeting to gauge CCA interest in the Proceeding and to determine if there is enough to warrant making this a CalCCA issue. Seven CCAs, including Pioneer, expressed that they would participate in the Proceeding; three other CCAs expressed that they would monitor the Proceeding for precedential purposes. It is still undetermined if CalCCA will take on the OIR or if it will be led by Joint CCAs. There was concern that if CCAs won on this issue, there would be limited use by the CCAs. If they do not, it could set a bad precedent.
Some CCAs, including Pioneer, acknowledged that they are already planning to procure biomass through the BioMAT program.
o Initial Implementation issues to be examined in the OIR:
What process should the Commission establish for CCAs to file their standard contract terms and conditions, and tariffs for approval?
What process should the Commission establish for CCAs to have a streamlined contracting process?
Whether the existing BioMAT pricing applies to CCAs’ BioMAT contracts? What process should the Commission establish for CCAs to submit eligible bioenergy contracts to the Commission for cost recovery?
How should the BioMAT program queue be coordinated, and contracted megawatts tracked?
November 17, 2022 - Pioneer Community Energy Legislative and Regulatory Update What process or rules should the Commission establish for CCAs’ prudent contract management?
What process should the Commission establish for the CCAs (and IOUs) to track and allocate the costs, revenues, benefits, and products of the BioMAT contracts? Should the existing BioMAT program end date of December 31, 2025, be extended to December 31, 2030, or to some other date to provide the opportunity for CCAs to participate in BioMAT? In accordance with the provisions in Ordering Paragraph (OP) 6 of D.14-12-081, should IOUs and CCAs also have the option to continue offering new BioMAT contracts after this date for any authorized megawatts that have not been contracted?
Are there any other actions the Commission should take to allow CCA participation in the BioMAT program?
• 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 were filed on 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. On July 18, 2022, the CPUC ordered an extension of the Statutory Deadline for the completion of the Proceeding to March 1, 2023. 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. On June 17, 2022, PG&E filed an Advice Letter implementing the 2020 ERRA decision. On August 4, 2022, an extension was issued, until December 31, 2023, of the Statutory Deadline for the completion of 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. A virtual Prehearing Conference was held on June 9, 2022. PG&E provided Supplemental Testimony on July 15, 2022. On August 8, 2022, a schedule was issued for the Proceeding. A PD is expected in May or June 2023, with a final decision no earlier than 30 days after the PD. o 2022 PG&E ERRA Forecast: On March 31, 2021, PG&E filed its 2022 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 November 17, 2022 - Pioneer Community Energy Legislative and Regulatory Update 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.
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.
New MPBs arrived: higher energy and RA prices add significant value (i.e., over $1 billion!) to the PCIA calculation; that additional value would be enough to turn the forecasted PCIA amount negative. On October 17, 2022, PG&E filed its October ERRA Forecast Update. The October Update is promising, including negative PCIA rates across all vintages. Drivers for the negative PCIA include higher brown power market prices, higher RA prices, lower RPS prices, an under collection of the ERRA, and an over collection of the PABA. PG&E will fight the negative PCIA and crediting for it, despite SCE and SDGE already having a negative PCIA. Joint CCAs are arguing for uniform treatment for all the IOUs and are confident they will win on this matter. Further Updates will come on November 15, 2022, and December 31, 2022, but it appears the PCIA will remain negative and land very close to where it is as of the October Update. There is high confidence that rates will be implemented on January 1, 2023, unlike last year. Comments on the October Update were filed on November 1, 2022. • Power Charge Indifference Adjustment:
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 the Market Price Benchmark (MPB) requesting comments on the Staff Implementation Plan to address RPS Voluntary Allocation Transactions in MPB Calculations; Comments were filed on April 28, 2022; Replies were filed on May 12, 2022. IOUs and any other parties were allowed to file proposals on the Energy Index MPB calculation; Proposals were due May 27, 2022; Comments were due June 16, 2022; Replies were due June 30, 2022. On June 10, 2022, an ALJ Proposed Decision (PD) was issued resolving Phase 2 issues related to data access and voluntary allocations in the MPB in the ERRA and PCIA forecast. On June 29, 2022, a Workshop was held to discuss the Proposals to revise the energy index MPB. On July 8, 2022, Opening Comments on the Joint IOU Energy Index MPB Proposal were filed; Replies were filed on July 22, 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 PD on Working Group 3 matters was issued on November 17, 2022 - Pioneer Community Energy Legislative and Regulatory Update 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. The petition’s arguments were 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 Renewables Portfolio Standard (RPS) proceeding. On June 24, 2022, an Amended Scoping Ruling extended the statutory deadline to June 30, 2023, to address remaining issues in Phase 2 (GHG free resources, long-term fixed price transactions in RPS adder, calculation of Energy Index MPB, and VAMO). An August 4, 2022, ALJ Ruling requested stakeholder comments on long-term fixed-price RPS transactions and provided a Staff Proposal for Incorporating Long-Term RPS Transactions into the RPS MPB. Comments were submitted in late August; Reply Comments were due on September 9, 2022. An additional Staff Proposal was issued in September 2022 on the RPS MPB, how to value GHG-free resources in the PCIA, and how to address data access issues. The Proposal sought to adopt GHG-free MPB for PCIA calculations and to work with staff to develop the details of this approach. Comments on the Staff Proposal were due on November 7, 2022, and Replies are due November 30, 2022. Energy Division scheduled a workshop for November 18, 2022, to discuss the Staff Proposal. • 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 were due June 9, 2022, and Reply Comments were due June 14, 2022.
Three Workstreams to resolve implementation details were ongoing from July and concluded in October 2022. Proposals developed through these Workstreams will be filed and served on November 15, 2022. A PD in Phase 2 of the Reform Track is expected Q1 2023. 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.
November 17, 2022 - Pioneer Community Energy Legislative and Regulatory Update Proposals were filed January 21, 2022. On May 20, 2022, a PD was issued addressing RA requirements and Phase 2 Implementation Issues. On June 9, 2022, PCE, SJCE, and CalCCA filed Opening Comments on the PD; Reply Comments were filed on June 14, 2022. Phase 3 will deal with 2024 requirements for flexible RA and the 2024-2026 local RA requirements. Phase 3 is anticipated to conclude summer 2023.
o CalCCA filed a Petition for Modification (PFM) addressing deadlines and penalties for System and Flex RA procurement in light the uncertainty created by the PG&E Central Procurement Entity’s (CPE) failure to meet its Local RA procurement requirements, RA market scarcity, and the lack of justification for having a penalty waiver process for the CPE on Local RA but not for LSEs on System RA. On October 19, 2022, CalCCA held an ex parte with CPUC President Reynolds’ and Commissioner Rechtschaffen’s advisors and then on October 20, 2022, with Energy Division staff regarding CalCCA's PFM. Energy Division staff acknowledges the RA market scarcity issues, but Energy Division sees this as a problem fundamentally about reliability, in which compliance is key, and is concerned about issuing waivers to LSEs that do not or cannot comply; they are concerned with the fairness of some LSEs paying for expensive RA to comply and others that may just seek a waiver. It is expected that the CPUC will take action on the PFM soon. CalCCA thinks they will grant the requested RA compliance date delays but does not think that waivers will be granted. • Utility Deenergization, PSPS, and EPSS:
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, these events are not regulated under the CPUC established PSPS rules: there is no advanced warning, and no communication takes place; power can be out for hours or days, presenting 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 o Pioneer staff has been working with BBSW to get more detail in PG&E’s EPSS reports to demonstrate to its customers that Pioneer is working to address their concerns with the effects of the power shutoffs and to mitigate the effects of the shutoffs. Pioneer staff is leading an effort among Joint CCAs and other stakeholders asking the CPUC for the consideration of EPSS issues in the Deenergization or its own Proceeding. Pioneer, along with Joint CCAs, Joint Local Governments, and Rural County Representatives of California (RCRC), filed a motion with the CPUC on July 12, 2022, to consider EPSS issues in the Deenergization or its own Proceeding.
The arguments in the motion are to treat EPSS events with the same regulations and oversight as PSPS events. Joint CCAs, Joint Local Governments, and RCRC held three ex parte meetings with Commissioners and staff from the CPUC. The meetings were overall successful; the parties seem to have gained some traction presenting their arguments. It, however, remains to November 17, 2022 - Pioneer Community Energy Legislative and Regulatory Update be seen how the CPUC will address concerns with the Fast Trip and EPSS Programs. Pioneer, along with the other Joint Parties, is moving forward to file a letter on Monday, November 7, 2022, regarding Fast Trip and EPSS issues and concerns with the CPUC, the Governor’s Office, and several others requesting that the Programs be regulated as the PSPS Program is. The Joint Parties have received several signatures from Legislators to sign-on to the letter (including Senator Dahle and Senator Nielsen, Assembly Member Dahle and Assembly Member Gallagher on behalf of Pioneer).
• PG&E and Pacific Generation Application to the CPUC:
o On September 28, 2022, PG&E filed an Application requesting CPUC authorization to allow PG&E to transfer, through a Q1 2023 auction, substantially all of its non-nuclear generation assets to Pacific Generation LLC, a new PG&E subsidiary. PG&E generation assets that would be transferred to this new entity contain 5.6 gigawatts with a book value of approximately $3.5 billion, including 3,848 megawatts (MW) of hydroelectric, 1,400 MW of natural gas, 152 MW of solar, and 182 MW of battery storage resources. Pacific Generation will facilitate a sale of up to
49.9% of the equity interests in Pacific Generation to one or more third party investors. PG&E claims there would be no impact to rates and that all benefits and costs would be transferred to PG&E’s customers. Initial Protests or Responses were filed November 4, 2022. o CalCCA filed Protest to the Application citing many concerns as grounds for their Protest:
PG&E has not sufficiently demonstrated ratepayers will remain unharmed by the transaction; let alone if they will benefit.
The transaction will have far-reaching regulatory and ratemaking impacts that necessitate close Commission review.
The Application fails to include key details and address the significant regulatory hurdles standing in the way of the transaction.
The Application presents market structure implications of the proposed transaction for all Load-Serving Entities.
Conditions for the Application’s approval are likely warranted. 11/10/2022
1 Customer Engagement Update
November 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
11/10/2022
2 Direct Customer Engagement
In Person Site Visits
• Assigned Accounts – 5
Phone Calls/Emails
• 1,034 customer calls (call
center)
• 90.0 % satisfied with customer
service
• 65 emails
• 107 team calls
• 31 Customers Retained/Saved
• 18 Opt Outs Rescinded
Key External Stakeholder Meetings
• Placer County Economic
Development Director
• Auburn - State of the City
• Auburn – Greater Area
Economic Development
• Foresthill Chamber Mixer
• Placer County Area Realtors
• Placer Biomass Consortium
• Colfax Chamber
• Auburn Chamber
• Regional Economic
Development Call
• Loomis Chamber
• Rocklin – Government
Relations Committee
• V3 Electric – Solar Vendor
3 4
11/10/2022
3 Social Media
Website
• 5,323 Site Visits
• 4,600 new users in
June
Facebook
• 683 Followers
• 9 Items Posted
• 644 Impressions
LinkedIn
• 197 Followers
• 6 Items Posted
• 489 Post Impressions
Instagram
• 11 Followers
• 4 Items Posted
• 5,668 Post Impressions
Other Media
Earned Media
• 120 - Total # of Stories
• 556,600 - Total Audience
• $1,667 - Total estimated value
Paid Radio Spots
204 30-second Spots
• KAHI
Paid Media
• Solar Seminar Ads
• How to Read Your Bill
Campaign (145,000
impressions)
5 6
PIONEER COMMUNITY ENERGY
COMMUNITY PROGRAMS ADVISORY COMMITTEE
October 26, 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 2:01 PM on October 26, 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 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 September 28, 2022 Committee meeting.
MOTION: Kramer/Krakow. Vote: 5:0:2.
ROLL CALL: Deckman, Kosla, Krakow, Kramer, McLennan.
No/Abstain: None.
Absent: Curtis, Reinhardt.
Entry No. 3
Reviewed and approved the Final Draft Report of Community Program Recommendations for presentation to the Pioneer Community Energy Board of Directors.
Director Riffey expressed his appreciation for the ad hoc sub-committee on their many hours of work toward the completion of this report.
Director Riffey informed the Committee that Member Reinhardt reviewed the report and sent word that he had no further comments.
The final draft report was shared onscreen for review and input as to any revisions.
Chair McLennan inquired of the Committee if anyone had any further significant changes to be made.
Member Krakow is supportive of the document as provided.
Member Deckman reported that he had no further significant changes.
Vice Chair Kramer had previously recommended that the Executive Summary by condensed.
Members were in agreement.
Continued to move through the report, agreeing to completeness of each page.
Approved the Final Draft Report as complete and ready for presentation to the Board of Directors with agreement to final review of format and punctuation by Member Deckman and Director Riffey.
MOTION: Deckman/Kosla. Vote: 5:0:2.
ROLL CALL: Deckman, Kosla, Krakow, Kramer, McLennan.
No/Abstain: None.
Absent: Curtis, Reinhardt.
Entry No. 4
Heard General Administration Functions, Part II.
A. Closing Comments
Director Riffey informed the Committee of the next steps:
November 30, 2022 - Committee meeting to review the presentation to the Board of Directors December 15, 2022 - Presentation to the Board of Directors for them to receive the report and provide direction to staff
December (TBD) – Committee Celebration at Pioneer Community Energy offices The next regular meeting is scheduled for November 30, 2022, at 2:00 PM.
B. Adjournment
The meeting adjourned at 2:30 PM
ATTEST:
Minutes approved as presented by a majority vote of the Community Programs Advisory Committee on November 30, 2022.
Teresa Willock, Board Secretary
Community Programs Advisory Committee
October 26, 2022
November 8, 2022
Alice Reynolds, President
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, California 94103
Re: CPUC Oversight of Large Electric Utilities’ Fast-Trip Outage Programs Dear President Reynolds:
When PG&E implemented its first large-scale de-energization event in October 2019, its regulators, legislators, and customers were outraged at the scope and extent of the outages and the prospect that such events would be commonplace for at least a decade. The unequivocal message from the Commission and the Legislature was that Californians could not—and should not have to—live with that level of interruption to a fundamental and life-sustaining utility service.
Three years later, PG&E’s new fast-trip outage program has quietly exceeded the number of customers impacted by PG&E’s largest 2019 de-energization event, and is close to exceeding the total number of customers impacted by all of PG&E’s 2019 outages, but there is no public effort by the Commission to bring these frequent and extensive outages under control. As it is currently deployed, fast-trip has effectively become a “stealth PSPS” program.
It is imperative that the Commission grant the motion filed by East Bay Community Energy, Pioneer Community Energy, Sonoma Clean Power, Marin Clean Energy, and the Rural County Representatives of California for the Commission to scrutinize the large electric utilities’ fast-trip outage programs and impose a robust regulatory framework, as it did with de-energization events.
PG&E’s fast-trip outage program is causing significant impacts to the communities that we represent, and the voluminous and repeated outages create serious public safety risks. As of September 30th, 1,746,822 customer accounts (or approximately 3.5 to 5.25 million individuals) have lost power year-to-date; 473,062 customer accounts (between 946,000 and 1.4 million individuals) lost power in September alone. It is alarming to see outages of this scale. These outages have lasted an average of six hours. That is enough time to lose a refrigerator full of food and an entire work or school day, which many impacted households and businesses cannot afford, particularly when the outages occur repeatedly. It must also be noted that in many rural communities, the outages can last days. Fast-trip is not a benign mechanical setting on PG&E’s distribution lines, nor is it a small wildfire mitigation program that only needs to be monitored at CALIFORNIA LECISLAT·URE
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Alice Reynolds
November 8, 2022
a high level. The much-touted improvements that PG&E made to its fast-trip program after a disastrous surprise rollout in 2021 have proven insufficient; PG&E cannot continue to rest on its laurels, as the data from its monthly outage reports proves.
The harms to customers from these widespread and relentless outages are not theoretical, nor are they a mere inconvenience. These outages often occur during high-fire-hazard conditions and weather events. Wireless and landline communications networks frequently go down, notwithstanding the backup power requirements the Commission imposed, which leaves people unable to call for help, receive emergency warning and alert messages, or access basic information. Impacted customers lose the ability to pump well water, which compromises human health and harms families, livestock, and crops. Without notice, medically vulnerable customers cannot charge their devices or backup batteries in advance, cannot prearrange transportation to an energized location, and cannot escape the looming threat of sudden power loss. 243,952 customer accounts (between approximately 488,000 and 732,000 individuals) lost power during the historic heat dome event in the first 10 days of September, which shattered heat records and posed a widespread danger to health and safety. Customers lost power while the Mosquito Fire was rapidly expanding, which put them at risk of missing evacuation warnings and being unable to charge electric cars.
PG&E has given no indication that it has considered what will happen when fast-trip settings are enabled when a major natural disaster occurs, like a wildfire or a large earthquake, or one of the high-wind events that are common during high fire season. These events could cause massive numbers of outages that, combined with extended restoration times, could significantly compound the effects of these disasters on our communities. The governing paradigm cannot be that customers are safest when the power is off.
The large electric utilities’ increasing reliance on fast-trip outages to curb wildfire risk is also placing California’s decarbonization goals at risk. Not only have the repeated outages and the utilities’ backup generator rebate programs fostered a diesel-powered ghost grid, but widespread electrification for homes and vehicles will be significantly undercut if Californians cannot rely on the utilities’ systems to be energized.
The increasing use of fast-trip settings is producing significant and cumulative community stress and frustration. Californians are losing trust in both their utility providers and the ability of regulatory and government institutions to keep them safe.
Scrutinizing the utilities’ implementation of their fast-trip outage programs, imposing a regulatory framework, and exercising enforcement authority for unreasonable decision making is squarely within the Commission’s jurisdiction. As its enabling legislation provides, the Office of Energy Infrastructure Safety (Energy Safety) reviews the utilities’ wildfire mitigation activities at a programmatic level, but the Commission is charged with ensuring the utilities are conducting their operations in a safe, reliable, and reasonable manner. This same inter-agency allocation of responsibility governed the Commission’s de-energization Rulemaking and Energy Safety’s scrutiny of de-energization programs as part of the utilities’ Wildfire Mitigation Plans, and Californians are safer as a result of both agencies’ efforts. The de-energization Rulemaking produced extensive rules governing the conduct, mitigation, restoration, and reporting required for de-energization events. Fast-trip outages create the same types of potentially disastrous Alice Reynolds
November 8, 2022
impacts for affected residents, but the Commission has no similar framework in place. This must change.
Californians cannot be forced to choose between a safe or reliable electrical grid. To achieve the state’s climate change goals and to protect public safety, we believe the Commission must take action on this critical issue.
Respectfully,
__________________________________
Senator Bill Dodd, SD 3
__________________________________
Senator John Laird, SD 17
__________________________________
Assembly Member Jim Wood, AD 2
__________________________________
Senator Brian Dahle, SD 1
__________________________________
Senator Jim Nielsen, SD 4
__________________________________
Assembly Member Megan Dahle, AD 1
__________________________________
Assembly Member James Gallagher, AD 3
cc: Caroline Thomas Jacobs, Director, Office of Energy Infrastructure Safety Commissioner Clifford Rechtschaffen
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Alice Reynolds
November 8, 2022
Commissioner Genevieve Shiroma
Commissioner Darcie Houck
Commissioner John Reynolds
Rachel Peterson, Executive Director, CPUC
Service List R.18-12-005
Senator Ben Hueso, Chair, Senate Energy, Utilities, and Communications Committee Assembly Member Eduardo Garcia, Chair, Assembly Utilities and Energy Committee Kip Lipper, Chief Policy Advisor, Senate President Pro Tempore Toni Atkins Chase Hopkins, Special Assistant to Assembly Speaker Antony Rendon Nidia Bautista, Chief Consultant, Senate Energy, Utilities, and Communications Committee Laura Shybut, Chief Consultant, Assembly Utilities and Energy Committee Kerry Yoshida, Consultant, Senate Republican Caucus
Greg Melkonian, Consultant, Assembly Republican Caucus Office of Policy and Budget Hazel Miranda, Deputy Legislative Secretary, Governor Gavin Newsom 1 cpuc.ca.gov | 415-703-2782 | 800-848-5580 |
California Public Utilities Commission
505 Van Ness Ave., San Francisco
_________________________________________________________________________________
FOR IMMEDIATE RELEASE PRESS RELEASE
Media Contact: Terrie Prosper, 415.703.1366, [email protected] Docket #: R.20-08-020
CPUC ISSUES SOLAR TARIFF MODERNIZATION PROPOSAL
TO SUPPORT RELIABILITY AND DECARBONIZATION
SAN FRANCISCO, Nov. 10, 2022 - The California Public Utilities Commission (CPUC) today issued a proposal to modernize the Net Energy Metering (NEM) solar tariff to promote solar and battery storage, grid reliability, and control electricity costs for all Californians. The update launches the solar industry into the future so that it can support the modern grid by incentivizing solar paired with battery storage and the adoption of electric vehicles, heat pump water heaters, and other electrification appliances while making rates more affordable for Californians.
The proposal:
Supports the solar and battery storage industry;
Saves a residential solar customer $100 a month on average, and a residential solar plus battery storage customer at least $136 a month on average;
Controls electricity costs for all Californians; and, Has no impact on existing rooftop solar customers, who maintain their existing compensation rates.
The proposal improves the pricing structure and credits customers for the electricity they export based on its value to the grid. Under the proposal, average residential customers of Pacific Gas and Electric Company, Southern California Edison, or San Diego Gas & Electric installing solar will save $100 a month on their electricity bill, and average residential customers installing solar paired with battery storage will save at least $136 a month. With these savings on their energy bills, average new solar and solar plus battery storage customers will fully pay off their systems in just nine years or less. The tariff also works together with an additional $900 million of state funding approved by the Legislature in 2 cpuc.ca.gov | 415-703-2782 | 800-848-5580 |
upfront incentives for residential solar plus battery storage adopters, with 70 percent of the incentives going directly to low-income customers. The proposal has no impact on existing rooftop solar customers and maintains their current compensation rates.
The proposal continues to support the solar industry while it pivots to a solar plus battery storage marketplace, which will bolster the local green energy economy. To support this evolution and the industry’s growth, the proposal provides extra credits to residential customer bills who adopt solar over the next five years, which allows the industry to gradually transition from solar-only sales to solar plus battery storage sales. The proposal does not include any charges specific to solar customers.
The proposed new tariff:
Applies new residential rates to incentivize electricity use when it is most beneficial for grid reliability. These rates have significant differences between peak and off-peak prices to incent battery storage and load shifting from evening hours to overnight or midday hours. The rates promote technologies such as battery storage, electric vehicles, and heat pump water heaters, which are important for achieving carbon neutrality.
Credits solar and solar plus battery storage customers for the electricity they export to the grid based on its value, as determined by the avoided cost to their utility of buying clean electricity elsewhere. This will incentivize solar exports during the late afternoon and early evening hours, particularly in the summer, when the grid is the most stressed. Provides extra electricity bill credits to residential customers who adopt solar or solar paired with battery storage in the next five years, which are paid on top of the avoided cost bill credits.
Customers lock in these extra bill credits for nine years. Provides low-income customers more access to solar by providing a larger amount of extra bill credits to ensure the solar system payback is just as attractive as the payback for higher-income customers (nine years or less).
Allows solar systems to cover 150 percent of a customer’s electricity usage to accommodate future electrification of appliances and vehicles.
Assembly Bill 327 (Perea, 2013) requires the CPUC to reform the NEM program, as well as conduct rate reform and distribution planning activities. Since 1997, California has supported the rooftop solar market through its NEM tariffs, which have enabled 1.5 million customers to install more than 12,000 06 @0 0
3 cpuc.ca.gov | 415-703-2782 | 800-848-5580 |
megawatts of renewable generation. Due to the success of California’s Renewables Portfolio Standard policies and the NEM tariff, California supplies a significant amount of its electricity needs during mid-day hours from renewable and zero-carbon energy resources.
To further reduce greenhouse gas emissions from electric generation, the proposal issued today incentivizes customers to install battery storage so they can store solar electricity produced in the daytime and export it in the evening, when the grid needs it the most for reliability and displacing fossil fuels. The proposal also controls electricity costs and improves electric bill affordability for all Californians by creating more grid value, with payments to new solar and solar plus storage customers calibrated to that value.
To read the new proposal (formally called a Proposed Decision), a fact sheet, Q&A, and more information, please visit cpuc.ca.gov/nemrevisit.
The proposal will be on the CPUC’s Dec. 15, 2022 Voting Meeting agenda.
Members of the public can comment on the proposal and view documents related to the proceeding at apps.cpuc.ca.gov/p/R2008020.
The CPUC regulates services and utilities, safeguards the environment, and assures Californians’ access to safe and reliable utility infrastructure and services. For more information on the CPUC, please visit www.cpuc.ca.gov.
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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.