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
December 15, 2022
Pioneer Community Energy Offices
2510 Warren Drive, Suite B, Rocklin, CA 95677
2:15 PM Closed Session
3:00 PM Regular Session
COMMUNITY ENEl7GY
2:15 PM Call to Order
1) Public Employee Performance Evaluation - GC §54957
Title: Executive Director
2) Conference with Labor Negotiators - GC §54957.6
Agency Negotiator: Board Chair
Unrepresented Employee: Executive Director
3:00 PM Call to Order
I. GENERAL ADMINISTRATIVE FUNCTION – PART I
A. CALL TO ORDER
1. Roll Call
B. PUBLIC REPORT OF CLOSED SESSION
C. AGENDA REVIEW
D. PRESENTATIONS BY THE PUBLIC ON MATTERS NOT ON THE AGENDA WITHIN THE JURISDICTION OF THE BOARD Persons may address the Board on items not on this agenda. Please limit comments to 3 minutes per person. According to State Law (the Brown Act), items must first be noticed on the agenda before any discussion or action. The Board is prohibited from discussing issues not on the agenda brought to them at this time.
II. CONSENT AGENDA
1) APPROVAL OF THE CONSENT AGENDA
All items on the Consent Agenda have been recommended for approval by the Executive Director. All Consent items will be approved by a single vote. Anyone may ask to address Consent items prior to the Board acting, and the item may be moved for discussion. a) ADMINISTRATION
Approve minutes of the November 17, 2022 regular meetings. (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 (Pioneer), including all of the Board-appointed Committees; and 2) Direct that the meetings of the Board of Directors and all other legislative bodies of Pioneer be conducted by teleconferencing, pursuant to Government Code Section 54953(e), with an option for in-person attendance of up to five Directors. (ECKERT)
REGULAR SESSION
CLOSED SESSION
c) FINANCE & ADMINISTRATION
Receive Draft Financial Reports for October 2022. (KOEHN) d) ADMINISTRATION
Adopt Resolution approving the 2023 Governing Board Meeting Schedule. (ECKERT) e) FINANCE & ADMINISTRATION
Adopt Resolution approving the addition of new E-ELEC rates at Pioneer’s generation rates discount to PG&E that is consistent with similar Pioneer rate discounts. (KOEHN) f) FINANCE & ADMINISTRATION
Adopt Resolution to 1) Authorize the Executive Director to negotiate and execute a new lease agreement with 2510 Warren LLC, consistent with the terms of the Non-Binding Term Sheet; and 2) Authorize the Executive director to approve changes orders related to this project not to exceed 15% of the total project cost. (KOEHN) g) FINANCE & ADMINISTRATION
Adopt Resolution authorizing the Executive Director to execute an agreement with Alive Media to design and install a new audio and visual system for Pioneer’s Board Room not-to-exceed $175,000.00 and increase by $31,000 the Finance Division Operations Budget. (KOEHN)
III. REGULAR AGENDA
2) FINANCE & ADMINISTRATION
Receive Financial Audit Report from Pisenti & Brinker, LLP (ACTION - KOEHN) RECOMMENDATION: Receive the Year-End Financial Statements and the Independent Auditor’s Report for the Fiscal Year 2021-22.
3) ADMINISTRATION
Resolution Authorizing a Rate Adjustment in 2023 (ACTION- ECKERT) RECOMMENDATION: Adopt Resolution approving implementation of Pioneer Community Energy’s (“Pioneer”) Generation Rate changes effective January 1, 2023. 4) PROGRAMS
Approve the Final Report from the Community Programs Advisory Committee and Adopt Resolution that authorizes staff to take action and create a Special Fund for Program purposes. (ACTION - RIFFEY)
RECOMMENDATION: 1) Approve the Final Report that includes program recommendations for near- and long-term program development; and 2) adopt Resolution to authorize staff to pursue the funding needs to convert the recommendations into action and to create a Special Fund for Program purposes.
5) ADMINISTRATION
Resolution approving Customer Bill Forgiveness for the Mosquito Fire Victims (ACTION -
ECKERT)
RECOMMENDATION: Adopt Resolution authorizing the Executive Director to provide bill forgiveness on the Pioneer Community Energy generation portion of the customer bill for the months of September and October 2022 to Pioneer Community Energy customers whose residences were destroyed due to the 2022 Mosquito Fire in an aggregate amount of bill forgiveness not-to-exceed of $25,000.
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 December 15, 2022 regular meeting of the Pioneer Community Energy Governing Board was posted and available for public review on December 9, 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:
January 19, 2023 at 3:00 PM
Pioneer Community Energy Offices
2510 Warren Drive, Suite B
Rocklin, CA 95677
PIONEER COMMUNITY ENERGY
GOVERNING BOARD
November 17, 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 November 17, 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/i/89967227073 .
Roll Call
p A Title Name
X Chair Alice Dowdin Calvillo
X Vice Chair Jeff Duncan
X Director Wes Heathcock
X Director John Hidahl
X Director Jim Holmes
X Director Greg Janda
X Director Suzanne Jones
X Director Dan Karleskint
X Director Dennis Thomas
Chair Dowdin Calvillo presided over the meeting.
Agenda Review
Agency
City of Auburn
Town of Loomis
City of Colfax
County of El Dorado
County of Placer
City of Rocklin
County of Placer
City of Lincoln
City of Placerville
Reviewed and made no revision to the meeting agenda for November 17, 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 September 15 and October 20, 2022 regular meetings. 1) Determined pursuant to Government Code Section 54953(e)(l) 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.
MOTION: Hidahl/Heathcock Vote: 5:0:4.
ROLL CALL: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Thomas.
No/Abstain: None.
Absent: Holmes, Janda, Jones, Karleskint.
Governing Board Minutes
November 17, 2022
Entry No. 3
Adopted Resolution 2022-26 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.
Director Hidahl inquired about the PCIA for the incoming Executive Director Eckert informed the Board of the projected Chair Dowdin Calvillo commented that she was looking
leverage for bringing on Nevada County in the future.
MOTION: Duncan/Hidahl. Vote: 5:0:4.
ROLL CALL: Dowdin Calvillo, Duncan, Heathcock,
No/Abstain: None.
Absent: Holmes, Janda, Jones, Karleskint.
Entry No. 4
Adopted Resolution 2022-27 approviD:~N~99endum No.
Choice Aggregation Implementation Plan.~nq;§i.19tement
cities of Grass Valley and Nevada City and aµthoti~jpg
MOTION: Thomas/Duncan .•.. yote: 5:0:4. (J< \ '<
ROLL CALL: Dowd in Calvillo; [)uncan, Heathcog~, Hidahl/ Jhprrias.
No/Abstain: None. . · ·
Absent: Holmes, Janda es, Karleskint.
Entry No. 5 ., ... ,;.,,,
Received Qu9r;t~rly Financial :13.~·po ~:_--,_c:,-.. _ :•;:::,, -~\~::~~- coming year being favorable.
on new members and increase
Pioneer Community Energy Community
to address Pioneer's expansion into the
California Public Utilities Commission.
Chair Dp.\h/tji11i t!1~iit&1
:~~g[f7SSe~h~[jgppre~;!1:ibh f9:n:t~~:
1 Gresentation and the ability to grow our reserves.
She corrir-r,ented how impor;tgpt it istpii.pgve reservesand she hopes that we can reach the ultimate goal of having 160 9ays reserves sqpp.~r than prpjected. As realized this year with extreme weather events and wildfire, it is b.etter to have more.reserves on hand as a safety net.
Director Hidahl ihgy.Jred as to a 4: ~H£veraging point and for future consideration of a rate structure triggered by CAISO projecte'd shortages w~jf;h would give ability to cover Pioneer's cost. Eventhough messaging stresses cutting usage dqring higti)/9~mand periods, many customers do not conserve then Pioneer does not recoup the cost of buying<additioj~l}energy at the higher costs during those periods. If not, a rate structure triggered by CAISO shortaQes, ti,eh what other alternatives does Pioneer have available? Executive Director Eckert commented that Pioneer is established with providing competitive and stable rates.
John Delassi, Pioneer's consultant from Pacific Energy Advisors, commented that customers do not respond well with critical peak pricing (punitive), rather than automated customer programs such as cycling air conditioning off for 15 minutes/hour that actually reduces usage.
Chair Dowdin Calvillo commented that keeping rates stable and building reserves would be better because customers may continue high usage which then causes higher billing, then the added rate increase on top of that would bring more negative impact.
Director Hidahl commented on the State's forced electrification, increasing consumption, but not increasing supply at a commensurate rate and grid system which is bringing long-range concerns for supply.
Governing Board Minutes
November 17, 2022
Chief Operating Officer Kang responded with information regarding mid-term liability and integrated resource adequacy along with increased requirements.
MOTION: Duncan/Dowdin Calvillo. Vote: 5:0:4.
ROLL CALL: Dowdin Calvillo, Duncan, Heathcock, Hidahl, Thomas.
No/Abstain: None.
Absent: Holmes, Janda, Jones, Karleskint.
Entry No. 6
Received an update on the California Arrearage Payment
Chair Dowdin Calvillo commented that this is excellent
Director Hidahl inquired if the qualifying
back to Pioneer to cover loss?
Director Heathcock inquired if there is a limit of
Director Koehn responded that the
December 2021. Any and all
A bill credit does not cover arrearages
Director Koehn also informed the Board
for generation owed to for
Entry No. 7
Adopted Resolution
in directing Pioneer
A. Board
2.0. full amount for Pioneer customers.
but the actual amount flows
2020 through
application.
· and that the highest outstanding bill
dedication and outstanding service
Director Thomas
more meeting with the
his community and will be
and staff that he does not expect to be re-elected but may have one . He expressed his appreciation for Pioneer - what has been done for in the future.
Chair Dowdin Calvillo expressed her appreciation for Director Thomas and commended him for his service at Pioneer and the League of California Cities.
Director Hidahl also expressed appreciation for Director Thomas.
Chair Dowdin Calvillo commented that she had opportunity to review the Legislative and Regulatory report and appreciated two of the Bills proposed for support: to work with CalCCA in pursuing bill extending the sunset date for implementation of AB 843 regarding the biomat program; and to work with Rural Counties Representatives of California (RCRC) to facilitate the procurement of Biomass and assist our local governments with the requirement to produce organic waste products (SB 1383).
Governing Board Minutes
November 17, 2022
B. Executive Director Communications
Executive Director Eckert echoed Chair Dowd in Calvillo comments regarding Director Thomas; announced that Pioneer staff will be present at the Mountain Mandarin Festival in Auburn; and informed the Board that staff will be working toward scheduling the tour of CAISO by initiating a poll in January.
General Counsel Khalsa informed the Board that she is
January 19, 2023 meeting to review meeting options regarding and next steps after the Governor declares an end to the Executive Director Eckert wished everyone a happy and
C. Informational Items
Received the Glossary of Terms.
D. Adjournment
The meeting adjourned at 4:15 PM .
ATTEST:
Minutes approved as presented by a majority vote of
the Governing Board on December 15, 2022.
Teresa Willock, Board Secretary
presentation for discussion at the
.-m,11nurr legislation, hybrid requirements,
of Emergency.
'IONEER
COAIMUNITY ENERGY
Staff Report - Item lb
To: The Governing Board
From: Inder Khalsa, Acting General Counsel
Item lb: 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: 12/15/2022
RECOMMENDATION
Determine pursuant to Government Code Section 54953(e)(l) 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)(l).)
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
Agenda Item: lb Agenda Date: 12/15/2022
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 abil ity of members to meet safely in person.
STRATEGIC PLAN
Strategic Policy 1: Local Engagement, Objective 1.5
FISCAL IMPACT
None
ATTACHMENTS
None
10NEER
C041MU/tl/TY ENERGY
Staff Report - Item le
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item le: Receive Draft Financial Reports for October 2022 Date: 12/15/2022
ACTION REQUESTED
Receive draft Financial Reports for October 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 in August 2021 and mPOWER activity is now limited to the administering of the outstanding mPOWER Bonds. Financials for the mPOWER program will be included in the audited year end reports. For October 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.
STRATEGIC PLAN
Strategic Priority 5: Financial Stability & Strategic Growth
FISCAL IMPACT
The YTD change in net position through four months of the fiscal year is $6.6 million.
ATTACHMENTS
1. Financial Reports through October 31, 2022
MAHER
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 October 31, 2022, and the related statement of revenues, expenses, and changes in net position for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perfonn 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.
H~A~
San Rafael, CA
November 29, 2022
110 1 Fifth Ave n ue, Su ite 200 So n Rafa e l, CA 94901 415 459 1249 mahercpa.com
PIONEER COMMUNITY ENERGY
CCAFUND
STATEMENT OF NET POSITION
As of October 31, 2022
ASSETS
Current assets
Cash and cash equivalents
Investments
Accounts receivable, net of allowance
Accrued revenue
Other receivables
Interest receivable
Prepaid expenses
Deposits
Total current assets
Noncurrent assets
Lease asset, net of amortization
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities
Accrued cost of electricity
Accounts payable
Other accrued liabilities
Interest payable
Deposits
Note payable
Lease liability
Total current liabilities
Noncurrent liabilities
Note payable
Lease liability
Total noncurrent liabilities
Total liabilities
NET POSITION
Unrestricted net position
Total net position
See accountants' compilation report.
CCAFund
$ 13,682,554
15,414,850
20,555,693
8,312,986
190,000
15,000
52,801
6,841,620
65,065,504
1,527,586
1,527,586
66,593,090
10,914,105
606,863
258,893
32,344
537,857
557,083
71,063
12,978,208
9,196,107
1,617,217
10,813,324
23,791,532
42,801,558
$ 42,801,558
2 PIONEER COMMUNITY ENERGY
CCAFUND
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Four Months Ended October 31, 2022
OPERATING REVENUES
Electricity sales, net
Total operating revenues
OPERATING EXPENSES
Cost of electricity
Contract services
Staff compensation
General and administration
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Investment gains (losses)
Interest and financing expense
Nonoperating revenues (expenses), net
CHANGE IN NET POSITION
Net position at beginning of period
Net position at end of period
See accountants' compilation report.
CCAFund
$ 78,396,319
78,396,319
68,657,488
1,690,064
958,435
225,774
71,531,761
6,864,558
115,480
(322,219)
(206,739)
6,657,819
36,143,739
$ 42,801,558
3 'IONEER
COMMUNITY ENERGY
Participation Rates - October 2022
AUBURN INC 86.55% 85.91% 85.83%
COLFAX INC 89.12% 88.61% 89.02%
LINCOLN INC 85.17% 83.64% 83.32%
LOOMIS INC 89.65% 89.03% 88.72%
PLACERVILLE INC 85.75% 85.80% 85.43%
ROCKLIN INC 92.33% 91.46% 91.33%
UNINC EL DORADO CO 78.44% 78.12% 77.73%
UNINC PLACER CO 86.43% 85.59% 85.45%
Grand Total 84.29% 83.54% 83.28%
4 MAHER
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 October 31, 2022, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of Pioneer Community Energy.
Management has elected to omit substantially all of the note disclosures requi'red 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.
H~A~
San Rafael, CA
November 29, 2022
110 1 Fifth Aven u e, Suite 200 Sa n Rafael , CA 9490 1 415 459 1249 m a hercpa .co m 5
PIONEER COMMUNITY ENERGY
CCAFUND
BUDGETARY COMPARISON SCHEDULE
Four Months Ended October 31, 2022
2022/23 YTD 2022/23
Amended YTD 2022/23
2022/23 YTD Budget Actual/ 2022/23 Amended
Amended 2022/23 YTD Variance Amended Amended Budget
Budget Actual (Under) Over Budget% Budget Remaining
ENERGY REVENUES
Energy Sales $ 75,945,565 $ 79,435,495 $ 3,489,930 105% $ 199,630,000 $ 120,194,505 Green 100 Sales 17,861 9,498 (8,363) 53% 48,000 38,502
Congestion Revenue Rights 1,116,318 1,132,166 15,848 101% 3,000,000 1,867,834 Less Uncollectible Accounts (759,634) (1,048,675) (289,041) 138% (1,996,780) (948,105) Total Operating Revenues 76,320,109 79,528,484 3,208,375 200,681,220 121,152,736
ENERGY EXPENSES
Power Supply 60,277,776 69,789,649 9,511,873 116% 149,977,000 80,187,351 OPERATING MARGIN 16,042,333 9,738,835 (6,303,499) 50,704,220 40,965,385
OPERATING EXPENSES
Administration
Compensation 188,751 173,607 (15,144) 92% 566,252 392,646 Contract services 143,775 47,253 (96,522) 33% 431,325 384,072 Operating expenses 311,975 171,204 (140,771) 55% 656,225 485,021 Total Administration expenses 644,501 392,064 (252,437) 1,653,802 1,261,738 Finance
Compensation 248,510 243,772 (4,738) 98% 745,530 501,758 Contract services 287,783 179,743 (108,040) 62% 603,350 423,607 Operating expenses 65,994 98,108 32,113 149% 197,983 99,875 Total Finance expenses 602,288 521,622 (80,665) 1,546,863 1,025,241 Power Procurement
Compensation 272,629 198,023 (74,606) 73% 817,886 619,863 Contract services 351,809 355,355 3,547 101% 1,285,426 930,071 Operating expenses 19,817 3,808 (16,009) 19% 35,450 31,642 Total Power Procurement expenses 644,254 557,187 (87,067) 2,138,762 1,581,575 Customer Care
Compensation 142,519 136,243 (6,276) 96% 427,557 291,314 Contract services 965,004 861,211 (103,793) 89% 2,895,012 2,033,801 Operating expenses 8,421 (8,421) 0% 25,263 25,263
Total Customer Care expenses 1,115,944 997,454 (118,490) 3,347,832 2,350,378 Marketing & Communications
Compensation 88,129 32,234 (55,896) 37% 264,388 232,154 Contract services 150,568 85,930 (64,638) 57% 546,240 460,310 Operating expenses 81,017 68,410 (12,607) 84% 243,050 174,640 Total Marketing expenses 319,714 186,573 (133,140) 1,053,678 867,105 Legislative & Regulatory
Compensation 182,216 134,397 (47,819) 74% 546,649 412,252 Contract services 122,781 42,243 (80,538) 34% 353,808 311,565 Operating expenses 1,750 7,681 5,931 439% 5,250 (2,431) Total Legislative expenses 306,747 184,321 (122,426) 905,707 721,386 Programs
Compensation 84,107 28,491 (55,616) 34% 252,320 223,829 Contract services 52,727 (52,727) 0% 100,000 100,000
Operating expenses 1,167 780 (387) 67% 3,500 2,720
Total Programs expenses 138,001 29,271 (108,730) 355,820 326,549 Total Operating Expenses 3,771,448 2,868,492 (902,956) 11,002,464 8,133,972
NON-OPERA TING REVENUES (EXPENSES)
lnvestment gains (losses) 25,000 115,480 90,480 462% 75,000 (40,480) Term Loan Debt Service (316,668) (308,000) 8,668 97% (540,000) (232,000) Additional Tem1 Loan Principal (2, I 00,000) (2, I 00,000) Line/Letter of Credit Fees (125,000) (171,287) (46,287) 137% (250,000) (78,713) Financial Security Requirement (178,000) 178,000 0% (356,000) £356,000) Nonoperating revenues (expenses), nel (594,668) (363,807) 230,861 (3,171,000) (2,807,193) Total Expenses (Energy, Operating, Non-Operating) 64,643,892 73,021,949 8,378,057 164,150,464 91,128,515 Contribution to/(from) Reserves $ 11,676,217 $ 6,506,535 $ (5,169,682) $ 36,530,756 $ 30,024,221 10NEER
COIJMUN/rY ENERGY
Staff Report - Item 1d
To: The Governing Board
From: Teresa Willock, Board Clerk
Item 1d: Adopt Resolution Approving the 2023 Governing Board Meeting Schedule Date: 12/15/2022
RECOMMENDATION
Adopt a Resolution approving the 2023 Governing Board Meeting Schedule through January 2024.
BACKGROUND
Pursuant to Section 54954 of the Brown Act and the Pioneer Community Energy Joint Powers Agreement, the Board must fix the date, hour, and place of regular meetings by resolution or ordinance. On November 6, 2017, the Governing Board adopted Resolution 2017-10, establishing the regular meeting times of the Pioneer Governing Board to normally be held on Monday of each calendar week, except for state or federal holidays, commencing at 3:00 PM, and subject to Board approval of an annual schedule of meetings. Resolution 2017-10 further provided that the meetings would normally be held in the Placer County Board of Supervisors' Chamber, provided, however, that the Governing Board may, in its discretion, hold any such regular meeting at any other location within the County of Placer.
On June 10, 2020, the Governing Board adopted Resolution 2020-5, rescinding Resolution 2017-10 and changing the regular meetings of the Pioneer Community Energy Governing Board to Thursdays. Resolution 2020-5 also changed the meeting location to the Pioneer Community Energy office located at 2510 Warren Drive, Suite B, Rocklin, CA 95677, provided however, that the Governing Board may, in its discretion, hold any such regular meeting at any other location within the County of Placer.
On February 18, 2021, the Governing Board approved the 2021 schedule of meetings through January 20, 2022, pursuant to Resolution 2020-5.
Since the adoption of Resolution 2020-5, Pioneer Community Energy expanded into El Dorado County. For the inclusion of current and any future Member Agencies of Pioneer Community Energy, on December 16, 2021, the Pioneer Community Energy Board of Directors adopted Resolution 2021-45 rescinding Resolution 2020-5.
Regular meetings of the Governing Board shall normally be held on the third Thursday of each month, with the exception of state or federal holidays, commencing at 3:00 PM, subject to Board approval on an annual schedule of meetings. Such regular meetings shall be held at the Pioneer Community Energy office located at 2510 Warren Drive, Suite B, Rocklin, California 95677, provided however, that the Governing Board may, in its discretion, hold any such regular meeting at any other location within the boundaries of any Pioneer Community Energy member agency; and approved the 2022 Governing Board Meeting Schedule.
Since that time, the regular schedule of meetings has followed the approved schedule; and pursuant to State of California Executive Order N-29-20, dated March 17, 2020, meetings had been conducted via live stream accessed by the Directors, Pioneer staff, and the public on the Zoom webinar platform.
Agenda Item: 1d Agenda Date: 12/15/2022
On October 4, 2021, the Pioneer Community Energy Governing Board determined that as a result of the COVID-19 state of emergency, meeting in person would present imminent risks to the health or safety of attendees at the meetings of the Governing Board of Directors and all other legislative bodies of Pioneer Community Energy which includes all of its Board appointed Committees; and directed that the meetings of the Governing Board of Directors and all other legislative bodies of Pioneer Community Energy be conducted pursuant to Government Code section 54953(e) (AB 361) and other applicable provisions of the Brown Act. And, every 30 days the Pioneer Community Energy Governing Board (1) reconsiders the circumstances of the state of emergency created by the COVID-19 pandemic and (2) determines if the state of emergency continues to directly impact the ability of the members to meet safely in person.
On February 17, 2022, the Pioneer Community Energy Governing Board authorized the Executive Director to move forward with development of hybrid in-person meetings. Since April 21, 2022, when the Pioneer Community Energy Governing Board directed that the meetings of the Governing Board of Directors and all other legislative bodies of Pioneer Community Energy be conducted by teleconferencing, pursuant to Government Code Section 54953€, with an option for in-person attendance of up to five Directors.
ANALYSIS & DISCUSSION
Staff recommends that the Board adopt the proposed 2023 Pioneer Community Energy Governing Board Meeting Schedule for February 16, 2023 through January 18, 2024. The proposed schedule continues to follow the current schedule of meetings to be held on the third Thursday of each month, commencing at 3:00 PM; including an alternate meeting date accommodating holidays during the month of December; and allowing for a recess during the month of August.
Staff has reviewed the meeting schedule for potential conflicts with holidays or other known reasons which could affect the achievement of a quorum.
STRATEGIC PLAN
Strategic Priority 4: Operational Excellence
FISCAL IMPACT
There is no direct budget or cost impact associated with this item.
ATTACHMENTS
1. Resolution approving the 2023 Governing Board Meeting Schedule.
Before the Governing Board of
Pioneer Community Energy
In the matter of: Adopt Resolution Approving the
2023 Governing Board Meeting Schedule Resolution No.: ----- The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held December 15, 2022, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
Chair of the Governing Board
Attest:
Secretary
WHEREAS, on November 6, 2017, the Governing Board adopted Resolution 2017-10, providing that regular meetings would be held on Monday of each calendar week, with the exception of state or federal holidays, commencing at 3:00 p.m., subject to Board approval of an annual schedule of meetings; and further providing that regular meetings would normally be held in the Placer County Board of Supervisors' Chamber, but that the Board could in its discretion hold any such regular meeting at any other location within the County of Placer; and WHEREAS, on June 10, 2020, the Governing Board adopted Resolution 2020-5, rescinding Resolution 2017-10 and changing the date for regular meetings of the Pioneer Community Energy Governing Board to be held on Thursdays, with the exception of state or federal holidays, commencing at 3:00 PM, subject to Board approval of an annual schedule of meetings; and
WHEREAS, on February 18, 2021, the Governing Board approved the 2021 schedule of meetings through January 20, 2022, pursuant to Resolution 2020-5; and WHEREAS, on December 16, 2021, the Governing Board approved the 2022 schedule of meetings through January 19, 2023, pursuant to Resolution 2021-45, rescinding Resolution 2020-5, updating the regular meeting location for the Pioneer Community Energy Governing Board to be at the Pioneer Community Energy office located at 2510 Warren Drive, Suite B, Rocklin, California, 95677, provided however, that the Governing Board may, in its discretion, hold any such regular meeting at any other location within the boundaries of any Pioneer Community Energy member agency.
Resolution 2022-xx
December 15, 2022
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 does hereby approve the 2023 Pioneer Community Energy Governing Board Meeting Schedule for February 16, 2023 through January 18, 2024.
The proposed schedule continues to follow the current schedule of meetings to be held on the third Thursday of each month, commencing at 3:00 PM; including an alternate meeting date accommodating holidays during the month of December; and allowing for a recess during the month of August.
3. This Resolution shall take effect immediately upon its adoption.
Exhibit A: Pioneer Community Energy 2023 Governing Board Meeting Schedule 2 December 15, 2022
Resolution 2022-xx
Exhibit A
PIONEER COMMUNITY ENERGY
2023 GOVERNING BOARD MEETING SCHEDULE
(Meetings are subject to cancellation/change based upon need) February 16, 2023
March 16, 2023
April 20, 2023
May 18, 2023
June 15, 2023
July 20, 2023
September 21, 2023
October 19, 2023
November 16, 2023
December 14, 2023
January 18, 2024
Regular meetings of the Committee are scheduled on the third Thursday of each month, commencing at 3:00 PM with proposed alternate meeting date accommodating holidays during the month of December 2023; and allowing for an August recess.
Such regular meetings shall be held at the Pioneer Community Energy office located at:
Pioneer Community Energy Offices
2510 Warren Drive, Suite B
Rocklin, CA 95677
Provided however, that the Governing Board may, in its discretion, hold any such regular meeting at any other location within the boundaries of any Pioneer Community Energy member agency. tONEER
COMMUNITY ENERGY
Staff Report - Item le
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item le: Adopt Resolution to Approve New E-ELEC Rate Schedule Date: 12/15/2022
RECOMMENDATION
Adopt a resolution approving the addition of new E-ELEC rates at Pioneer's generation rates discount to PG&E that is consistent with similar Pioneer rate discounts.
BACKGROUND
PG&E recently implemented a new electric schedule known as E-ELEC. The new rate is an optional schedule that would apply to individually metered electric service to residential customers who have one or more of the following qualifying electric technologies:
• Electric vehicle charging
• Energy storage
• Electric heat pump for water heating or climate control The rate schedule applies to whole-house service where the residential usage and the qualifying electric technology usage are metered together. It is not available to net energy metering (NEM) customers .
ANAL VSIS & DISCUSSION
The establishment of this new rate by Pioneer will allow eligible customers the ability to choose the new rate structure without opting out as a Pioneer customer. The customer would receive the advantages of the rate structure and still receive the Pioneer generation rate at a discount to PG&E.
STRATEGIC PLAN
The approval of this new rate is consistent with Pioneer Strategic Priority 2: Quality in Service that keeps Pioneer's rates competitive and provides customers with a electricity provider choice.
FISCAL IMPACT
There is no fiscal impact with this report, but the approval of this new rate allows for existing customers to take advantage of the new rate plan if eligible and if advantageous and thereby maintaining Pioneer's customer base.
ATTACHMENTS
1. Resolution Adopting a E-ELEC Rate Schedule
Before the Governing Board of
Pioneer Community Energy
In the matter of: Approving the addition of a new
E-ELEC Rate Schedule Resolution No.: ____ _
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held December 15, 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 has the authority to aggregate electric load to purchase and supply electricity for customers within its service area; and
WHEREAS, PG&E has added electric rate schedule E-ELEC to accommodate residential customers that have: Electric vehicle charging; Energy storage; or Electric heat pump for water heating or climate control; and
WHEREAS, Per Resolution 2021-47 adopted on December 16, 2021, the Governing Board directed Pioneer's generation rate schedules to be 6% lower than the sum of PG&E's generation rates and the 2021 Vintage PCIA;
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 addition of electric rate schedule E-ELEC is approved at the respective lower rate schedule which will be 6% lower than the sum of PG&E's generation rates (Exhibit A) and the 2021 Vintage PCIA;
3. This Resolution shall take effect immediately upon its adoption.
Exhibit A: Pacific Gas & Electric (PG&E) Electric Schedule E-ELEC Effective 12/1/22 Pacific Gas and
Electric Companym Original
EXHIBIT A
Cal. P.U.C. Sheet No. 54736-E
U 39 San Francisco, California
ELECTRIC SCHEDULE E-ELEC Sheet 1 (N)
RESIDENTIAL TIME-OF-USE (ELECTRIC HOME) (N)
SERVICE FOR CUSTOMERS WITH QUALIFYING ELECTRIC TECHNOLOGIES APPLICABILITY: This optional schedule applies to individually-metered electric service to residential customers who have one or more of the following qualifying electric technologies:
(N)
I
• Electric vehicle charging;
• Energy storage; or
• Electric heat pump for water heating or climate control (space heating and/or cooling).
To qualify as electric vehicle charging, a customer must have a currently registered Motor Vehicle, as defined by the California Motor Vehicle Code, which is a battery electric vehicle (BEV) or plug-in hybrid electric vehicle (PHEV) recharged via a recharging outlet at the customer's premises. This schedule is not available to customers with a conventional, charge sustaining (battery recharged solely from the vehicle's on-board generator) hybrid electric vehicle (HEV). Low speed electric vehicles and electrically powered motorcycles or bicycles, as defined by the California Motor Vehicle Code, are not eligible for this rate option. Service under this schedule is provided at the sole option of PG&E and based upon the availability of metering equipment and customer infrastructure improvements necessary for charging.
To qualify as energy storage, a customer must apply for interconnection and be granted permission to operate in order to take service on Schedule E-ELEC. The installed storage capacity, in kWh, must be at least 0.05% of the customer's annual consumption from the previous twelve months for customers with more than 6,000 kWh of annual usage. The installed storage capacity for customers with 6,000 kWh or less of annual usage must be at least 2 kWh. Customers with less than 12 months of usage history must install storage capacity, in kWh, of at least 2 kWh to be eligible for this rate schedule.
To qualify as an electric heat pump, a customer must use an electric heat pump as its primary means for either: (a) water heating or (b) climate control (i.e., space heating and/or cooling).
This rate schedule applies to whole-house service where the residential usage and the qualifying electric technology usage are metered together (that is, the qualifying electric technology usage is not metered separately). It is not available to net energy metering (NEM) customers.
The provisions of Schedule S-Standby Service Special Conditions 1 through 6 shall also apply to customers whose premises are regularly supplied in part (but not in whole) by electric energy from a nonutility source of supply. These customers will pay monthly reservation charges as specified under Section 1 of Schedule S, in addition to all applicable Schedule E-ELEC charges. See Special Condition 6 of this rate schedule for exemptions to standby charges
I
I
I
TERRITORY: This rate schedule applies everywhere PG&E provides electric service.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
RATES:
Advice
Decision
Total bundled service charges are calculated using the total rates below. Customers on this schedule are not subject to the delivery minimum bill amount applied to the delivery portion of the bill (i.e. to all rate components other than the generation rate). In addition, total bundled charges will include applicable generation charges per kWh for all kWh usage.
Direct Access (DA) and Community Choice Aggregation (CCA) charges shall be calculated in accordance with the paragraph in this rate schedule titled Billing. (N) (Continued)
6768-E
D.21-11-016
Issued by
Meredith Allen
Vice President, Regulatory Affairs
Submitted
Effective
Resolution
November 18, 2022
December 1, 2022
Pacific Gas and
Electric Company" Revised
Cancelling Original
Cal. P. U. C. Sheet No.
Cal. P.U.C. Sheet No.
EXHIBIT A
54743-E
54737-E
U 39 San Francisco, California
ELECTRIC SCHEDULE E-ELEC Sheet 2
RESIDENTIAL TIME-OF-USE (ELECTRIC HOME)
SERVICE FOR CUSTOMERS WITH QUALIFYING ELECTRIC TECHNOLOGIES RATES:(Cont'd.)
TOTAL BUNDLED RATES
Base Services Charge ($ per meter per day) $0.49281 (N) Total Energy Rates($ per kWh) PEAK PART-PEAK OFF-PEAK
Summer Usage
Winter Usage
$0.53159 (N)
$0.30007 (N)
$0.36971 (N)
$0.27798 (N)
$0.31303 (N)
$0.26412 (N)
California Climate Credit (per household, per
semi-annual payment occurring in the April and
October bill cycles)
($39.30) (N)
Total bundled service charges shown on a customer's bills are unbundled according to the component rates shown below.
UNBUNDLING OF TOTAL RATES
Energy Rates by Component ($ per kWh) PEAK PART-PEAK OFF-PEAK Generation:
Summer Usage $0.27308 (N) $0.17397 (N) $0.12887
Winter Usage $0.11095 (N) $0.09098 (N) $0.07763
Distribution**:
Summer Usage $0.15636 (N) $0.09359 (N) $0.08201
Winter Usage $0.08697 (N) $0.08485 (N) $0.08434
Transmission* (all usage) $0.04787 (N) $0.04787 (N) $0.04787 Transmission Rate Adjustments* (all usage) $0.00167 (N) $0.00167 (N) $0.00167 Reliability Services* (all usage) $0.00012 (N) $0.00012 (N) $0.00012 Public Purpose Programs (all usage) $0.02197 (N) $0.02197 (N) $0.02197 Nuclear Decommissioning (all usage) ($0.00013) (N) ($0.00013) (N) ($0.00013) Competition Transition Charges (all usage) $0.00023 (N) $0.00023 (N) $0.00023 Energy Cost Recovery Amount (all usage) ($0.00429) (N) ($0.00429) (N) ($0.00429) Wildfire Fund Charge (all usage) $0.00459 (N) $0.00459 (N) $0.00459 New System Generation Charge (all usage)** $0.00299 (N) $0.00299 (N) $0.00299 Wildfire Hardening Charge (all usage) $0.00141 (N) $0.00141 (N) $0.00141 Recovery Bond Charge (all usage) $0.01112 (N) $0.01112 (N) $0.01112 Recovery Bond Credit (all usage) ($0.01112) (N) ($0.01112) (N) ($0.01112) Bundled Power Charge Indifference $0.02572 (N) $0.02572 (N) $0.02572 Adjustment
( all usage)***
Transmission, Transmission Rate Adjustments and Reliability Service charges are combined for presentation on customer bills.
Distribution and New System Generation Charges are combined for presentation on customer bills.
Direct Access, Community Choice Aggregation and Transitional Bundled Service Customers pay the applicable Vintaged Power Charge Indifference Adjustment. Generation and Bundled PCIA are combined for presentation on bundled customer bills.
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(Continued)
Advice
Decision
6770-E Issued by
Meredith Allen
Vice President, Regulatory Affairs
Submitted
Effective
Resolution
November 21 , 2022
December 1, 2022
(T)
Pacific Gas and
Electric Company" Original
EXHIBIT A
Cal. P. U. C. Sheet No. 54738-E
U 39 San Francisco, California
ELECTRIC SCHEDULE E-ELEC Sheet 3 (N)
RESIDENTIAL TIME-OF-USE (ELECTRIC HOME) (N)
SERVICE FOR CUSTOMERS WITH QUALIFYING ELECTRIC TECHNOLOGIES
SPECIAL
CONDITIONS:
1. TIME PERIODS: Times of the year and times of the day are defined as follows: (N) Advice
Decision
All Year:
Peak: 4:00 p.m. to 9:00 p.m. every day including weekends and holidays.
Partial-Peak: 3:00 p.m. to 4:00 p.m. and 9:00 p.m. to 12:00 a.m. every day including weekends and holidays.
Off-Peak: All other hours.
2. SEASONAL CHANGES: The summer season is June 1 through September 30 and the winter season is October 1 through May 31. When billing includes use in both the summer and winter periods, charges will be prorated based upon the number of days in each period.
3. ADDITIONAL METERS: If a residential dwelling unit is served by more than one electric meter, the customer must designate which meter is the primary meter and which is (are) the additional meter(s).
4. BILLING: A customer's bill is calculated based on the option applicable to the customer.
Bundled Service Customers receive generation and delivery services solely from PG&E. The customer's bill is based on the Unbundling of Total Rates set forth above.
Transitional Bundled Service (TBS) Customers take TBS as prescribed in Rules
22.1 and 23.1, or take PG&E bundled service prior to the end of the six (6) month \ 6768-E
D.21-11-016
advance notice period required to elect PG&E bundled service as prescribed in Rules \
22.1 and 23.1. TBS customers shall pay all charges shown in the Unbundling of Total I Rates except for the Bundled Power Charge Indifference Adjustment and the I generation charge. TBS customers shall also pay for their applicable Vintaged Power I Charge Indifference Adjustment provided in the table below, and the short-term I commodity prices as set forth in Schedule TBCC. I
Issued by
Meredith Allen
Vice President, Regulatory Affairs
Submitted
Effective
Resolution
(N)
(Continued)
November 18, 2022
December 1, 2022
Pacific Gas and
Electric Company"
San Francisco, California
Original
EXHIBIT A
Cal. P.U.C. Sheet No. 54739-E
ELECTRIC SCHEDULE E-ELEC Sheet 4 (N)
RESIDENTIAL TIME-OF-USE (ELECTRIC HOME) (N)
SERVICE FOR CUSTOMERS WITH QUALIFYING ELECTRIC TECHNOLOGIES SPECIAL 4. BILLING (Cont'd.): (N)
CONDITIONS:
(Cont'd.) Direct Access (DA) and Community Choice Aggregation (CCA) Generation Service Customers purchase energy from their non-utility provider and continue receiving delivery services from PG&E. These customers shall pay all charges shown in the Unbundling of Total Rates except for the Bundled Power Charge Indifference Adjustment and the generation charge. These customers shall also pay for their applicable Vintaged Power Charge Indifference Adjustment provided in the table below, the franchise fee surcharge provided in Schedule E-FFS, and the Generation Service from their non-utility provider.
Exemptions to charges for DA and CCA customers, including exemptions continuous DA service, are set forth in Schedules DA CRS and CCA CRS.
Vintage Power Charge Indifference Adjustment (per kWh)
2009 Vintage
2010 Vintage
2011 Vintage
2012 Vintage
2013 Vintage
2014 Vintage
2015 Vintage
2016 Vintage
2017 Vintage
2018 Vintage
2019 Vintage
2020 Vintage
2021 Vintage
2022 Vintage
Rate
$0.01331
$0.01797
$0.01946
$0.02091
$0.02018
$0.02010
$0.01980
$0.02018
$0.01985
$0.01963
$0.01980
$0.01386
$0.02572
$0.02572
(Continued)
(N)
Advice
Decision
6768-E
0.21-11-016
Issued by
Meredith Allen
Submitted
Effective
Resolution
November 18, 2022
December 1, 2022
Vice President, Regulatory Affairs
Pacific Gas and
Electric Company" Original
EXHIBIT A
Cal. P.U.C. Sheet No. 54740-E
U 39 San Francisco, California
ELECTRIC SCHEDULE E-ELEC Sheet 5 (N)
RESIDENTIAL TIME-OF-USE (ELECTRIC HOME) (N)
SERVICE FOR CUSTOMERS WITH QUALIFYING ELECTRIC TECHNOLOGIES
SPECIAL
CONDITIONS:
(Cont'd.)
5. SOLAR GENERATION FACILITIES EXEMPTION: Customers who utilize solar (N) generating facilities which are less than or equal to one megawatt to serve load and who I do not sell power or make more than incidental export of power into PG&E's power grid I and who have not elected service under Schedule NEM, will be exempt from paying the I otherwise applicable standby reservation charges. I
I
6. DISTRIBUTED ENERGY RESOURCES EXEMPTION: Any customer under a time-of- [ use rate schedule using electric generation technology that meets the criteria as defined I in Electric Rule 1 for Distributed Energy Resources is exempt from the otherwise I applicable standby reservation charges. Customers qualifying for this exemption shall be subject to the following requirements. Customers qualifying for an exemption from standby charges under Public Utilities (PU) Code Sections 353.1 and 353.3, as described above, must take service on a time-of-use (TOU) schedule in order to receive this exemption until a real-time pricing program, as described in PU Code 353.3, is made available. Once available, customers qualifying for the standby charge exemption must participate in the real-time program referred to above. Qualification for and receipt of this distributed energy resources exemption does not exempt the customer from metering charges applicable to time-of-use (TOU) and real-time pricing, or exempt the customer from reasonable interconnection charges, non-bypassable charges as required in Preliminary Statement BB - Competition Transition Charge Responsibility for All Customers and CTC Procurement, or obligations determined by the Commission to result from participation in the purchase of power through the California Department of Water Resources, as provided in PU Code Section 353. 7.
7. WILDFIRE FUND CHARGE: The Wildfire Fund Charge was imposed by California Public Utilities Commission Decisions 19-10-056, 20-07-014, 20-09-005, and 20-09-023 and is property of Department of Water Resources (DWR) for all purposes under California law. The Charge became effective October 1, 2020, and applies to all retail sales, excluding CARE and Medical Baseline sales. The Wildfire Fund Charge (where applicable) is included in customers' total billed amounts. The Wildfire Fund Charge replaces the DWR Bond Charge imposed by California Public Utilities Commission Decisions 02-10-063 and 02-12-082. (N)
(Continued)
Advice
Decision
6768-E
D.21-11-016
Issued by
Meredith Allen
Submitted
Effective
Resolution
November 18, 2022
December 1, 2022
Vice President, Regulatory Affairs
'IONEER
COMMUNITY ENERGY
Staff Report - Item 1f
To: The Governing Board
From: Steve Lund, Internal Operations Coordinator
Item lf: Adopt a resolution authorizing the Executive Director to execute a new lease agreement with 2510 Warren LLC
Date: 12/15/2022
RECOMMENDATION
Adopt a resolution:
1. Authorize the Executive Director to negotiate and execute a new lease agreement with 2510 Warren LLC, consistent with the terms of the Non-Binding Term Sheet.
2. Authorize the Executive director to approve changes orders related to this project not to exceed 15% of the total project cost.
BACKGROUND
Pioneer's office space was initially designed to provide staff with an open environment to promote collaboration and team involvement. One of the design aspects left the offices with perimeter walls and no ceilings. Within the first couple of months of staff moving into the space, it became apparent that this design element made it impossible for the offices to be used for sensitive meetings. Although, the issue of noise travel from these offices has always been an issue, increased staff has created a higher level of urgency to have it addressed.
Also the high use of virtual meeting platforms, and routine calls often require staff to move to one of the three enclosed meeting rooms that have ceilings, or the rest of the office will be subject to hearing the entire meeting .
Because of the limited meeting space and frequent shared virtual meetings conducted in the open space environment issues such as electronic feedback, audio limitations and participation are impacted. Due to the current design, sensitive conversations cannot be held in the offices and must be taken to the enclosed meeting spaces enclosed spaces in the building.
Staff has determined that the best solution to the issue of office sound travel is to have ceilings installed in the offices with insulation above.
ANALYSIS & DISCUSSION
Since the issue was first discovered, staff has worked to identify the most cost-effective solution. The options considered include the addition of sound dampening panels, sound dampening speakers, and a tenant improvement (TI) to add ceilings in the effected offices. Through this process a couple demos of sound dampening products were tested for their effectiveness. The products demoed did not provide significant results.
The lack of results from sound dampening techniques, lead staff to obtain pricing for a new tenant improvement to add ceilings to the offices. This improvement will require modification of the mechanical, electrical, and fire sprinkler systems along with the addition of the new ceilings and insulation.
Initially, the office space was leased by Placer County and then sub-leased to Pioneer, for this reason staff worked with Placer County to obtain an estimate for the project. In April of 2021, Placer County provided an estimate of $239,605.28 to complete the needed improvements. While working with the County to obtain an estimate, Pioneer reached out to the landlord (a Commercial General Contractor) and asked if the landlord would be willing to complete the improvements. Because of other projects underway at the time the land lord declined the request. Due to the project cost received at the time and the landlord not having the time to take on the
Agenda Item: 1f Agenda Date: 12/15/2022
project, staff determined that a request for proposal (RFP) would need to be issued. However, prior to issuing the tenant improvement RFP staff would need to have a bid ready set of plans drawn. Staff requested estimates from three engineering firms for the plans and identified a firm to produce the plans and attempted to agree to a contract; however, the firm rescinded their interest. At this point, staff contacted the landlord and asked for a recommendation on an engineering firm and once again asked if the landlord would be willing to take on the project. The landlord now has the capacity to complete the project and has provided a proposal.
The landlord's proposal is to take on the improvement from start to finish. This includes hiring a firm to draw the plans, obtaining the permit, and completing the improvements. The cost of the improvement is roughly $190,000. Payment for the improvement would be structured so that a portion of the improvement is paid by Pioneer through progress payments during construction and with the landlord financing $100,000 for a financing charge of $5,000. The resulting $105,000 would then be added to Pioneer's monthly rent and Pioneer would agree to retire the existing lease and agree to a new seven-year lease with similar terms to the current one.
The new lease would begin on the first month after completion of the project.
Internally, staff has taken into consideration the remaining term of the current lease and the possibility of moving to another location that meets the needs of the organization. Through these discussions, staff determined that the current location is the best fit for the organization. This location provides adequate space for future staffing and service territory expansion. Also, the physical location is centrally located within Pioneer's territory, providing access for its customers.
STRATEGIC PLAN
Strategic Priority 4: Operational Excellence
Reliability is central to our efforts and a core value of Pioneer. By prioritizing operational excellence, we retain our independence and agility as a provider while supporting our community by offering more options for reliable energy.
FISCAL IMPACT
Rent associated with the lease will continue as written in the current lease. Current monthly rent is $11,179.68 with rent increasing 3% annually. There will also be a $1,250.00 monthly charge for a portion of the tenant improvements, this amount will sunset after seven years and is not subject to the 3% annual increase.
The balance of the improvement cost that is not amortized approximately $90,000 will be paid in progress payments. This amount is budgeted in the FY2022/2023 budget.
ATTACHMENTS
1) Resolution -
1. Authorize the Executive Director to negotiate and execute a new lease agreement with 2510 Warren LLC, based on the terms of the Non-Binding Term Sheet.
2. Authorize the Executive director to approve changes orders related to this project not to exceed 15% of the total project cost.
Before the Governing Board of
Pioneer Community Energy
In the matter of: A Resolution Authorizing the
Executive Director to negotiate and execute a new
lease agreement with 2510 Warren LLC, consistent
with the terms of the Non-Binding Term Sheet.
Resolution No.: -----
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held December 15, 2022, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
Chair of the Governing Board
Attest:
Secretary
WHEREAS, it is in the interest of Pioneer Community Energy ("Pioneer") to develop a functional and professional workspace; and
WHEREAS, the objective of the new lease and tenant improvement is to provide staff a functional workspace to conduct all aspects of business; and WHEREAS, 251 O Warren LLC has offered to replace the existing lease with a new lease consistent with the Non-Binding Term Sheet.
WHEREAS, 2510 Warren LLC will construct tenant improvements at a cost of $190,000 with $105,000 of the cost amortized over the new lease term.
NOW THEREFORE, BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:
1. The above recitals are true and correct.
2. The Governing Board hereby authorizes the Executive Director to negotiate and execute to execute a new lease agreement consistent with the Non-Binding Term Sheet.
Resolution No.
December 15, 2022
2 3. The Governing Board hereby authorizes Authorize the Executive director to approve changes orders related to this tenant improvement project not to exceed 15% of the total project cost.
Exhibit A: Term Sheet
NON-BINDING TERM SHEET
2510 WARREN LLC, a South Dakota limited liability company ("Landlord"), and PIONEER COMMUNITY ENERGY, a joint powers agency formed and existing under the provisions of the Joint Exercise of Powers Act of the State of California, Government Code Section 6500 et. seq. ("Tenant"), hereby present for consideration by each party the following basic terms of a Lease for that certain office space located at 2510 Warren Dr., Suite B & C, Rocklin, CA 95677, California (the "Premises"). It is important to note that these terms shall be included with other relevant items in a final Lease, which will not be binding unless all of the terms thereof are approved by both parties in their sole and absolute discretion, and each party acknowledges that the other party may cease negotiations at any time.
1. 2.
3. 4.
OPTION(S) TO
EXTEND TERM:
LEASE TERM:
LEASE/RENT
COMMENCEMENT
DATE:
RENT:
13065-0001 \2752643v I .doc
Tenant shall have options to extend the Lease Term additional terms not to exceed a total of ten (10) years in aggregate. Tenant shall exercise the option by giving Landlord written notice of Tenant's exercise of such right one hundred and twenty (120) days prior to the expiration of the Lease Term.
Subject to the extension provided in Section 2, the term of the Lease may be up to seven (7) years ("Lease Term").
The term of the Lease shall commence upon completion of the Improvements (as described below), as evidenced by
documentation of final building permits, Certificates of Occupancy, or any other required permits and approvals issued by the relevant governmental authorities. (As of the date of this Term Sheet, the Commencement Date is projected to occur on July 1, 2023.)
Based on the expected completion date of construction of June 2023, the projected commencement date of the lease is July I, 2023. The rates below would be effective on commencement.
During the initial Lease Term, Rent shall be as set forth in the table below:
Period Monthly Monthly Total
Rent Improvement Monthly
Cost Rent
Month 1 to 12 $11,515.07 $1,250 $12,765.07
Month 13 to 24 $11,860.52 $1,250 $13,110.52
Month 25 to 36 $12,216.34 $1,250 $13,466.34
Month 37 to 48 $12,582.83 $1,250 $13,832.83
Month 49 to 60 $12,960.32 $1,250 $14,210.32
Month 61 to 72 $13,349.13 $1,250 $14,599.13
Month 73 to 84 $13,749.60 $1,250 $14,999.60
-1-
5. 6.
7. 8.
IMPROVEMENTS/
TENANT
IMPROVEMENTS:
TENANT
IMPROVEMENT
COSTS:
LEASE FORM:
NON-BINDING:
13065-000 I \2752643v I .doc
The Rents set forth above are calculated to include an annual Rent increase of three percent (3%).
Landlord shall be solely responsible for construction and installation of certain "Improvements" to the Premises prior to the Lease Commencement Date, which shall include without limitation the addition of ceilings to the enclosed offices, which requires modifications to the electrical, mechanical, and fire sprinklers systems.
Landlord and Tenant anticipate the total cost of the
Improvements to be approximately $185,635. In connection with the Tenant Improvements, Landlord will charge Tenant a "Landlord Financing Charge" of $5,000.
During the course of the construction of the Initial
Improvements, Tenant shall make "progress payments" to
Landlord in the total amount of approximately $85,635.
Progress payments will be made through five payments during construction for preconstruction, architectural design, permit, 50% completion, and project completion. 10% of the final progress payment will be held until receipt of the finalized Building Permit.
The remainder of the costs of the Improvements shall be paid by Tenant to Landlord simultaneously with the Tenant's
monthly Rent payments over the course of the initial Lease Term at a rate of $1,250 per month (for a total over the course of the initial Lease Term of$105,000), as reflected in the Table in Section 8 above.
The Lease will be prepared by Landlord.
This Term Sheet is merely a preliminary statement of the parties' general intentions and does not contain all of the material business terms of the proposed transaction, and the business terms herein and such additional terms are subject to the further approval of the parties in their sole and absolute discretion. The parties mutually intend that neither shall have any binding contractual obligation to the other regarding this matter, unless a final lease document is approved and executed. [Signature Page to Follow]
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13065-000 I \2752643v I .doc
LANDLORD:
2510 WARREN LLC,
a South Dakota limited liability company
~
By: o
ED by Tony Moayed
-12-08 16:34:10 PST
Print Name: _T_on_y_M_oa_ye_d _______ _
Title: _c_E_o ____________ _
TENANT:
PIONEER COMMUNITY ENERGY,
a joint powers agency formed and existing under the
provisions of the Joint Exercise of Powers Act of the State of California, Government Code Section 6500 et. seq.
By: ------------
Print Name: ___________ _
Title:
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'IONEER
COMMUNITY ENERGY
Staff Report - Item lg
To: The Governing Board
From: Steve Lund, Internal Operations Coordinator
Item lg: Adopt a resolution authorizing the Executive Director to execute an agreement with Alive Media to design and install a new audio and visual system for Pioneer's Board Room not-to-exceed $175,000 and increase by $31,000 the Finance Division Operations Budget.
Date: 12/15/2022
RECOMMENDATION
Adopt a resolution authorizing the Executive Director to execute an agreement with Alive Media to design and install a new audio and visual system for Pioneer's Board Room not-to-exceed $175,000.00 and increase by $31,000 the Finance Division Operations Budget.
AUDIT & FINANCE COMMITTEE RECOMMENDATION
At the December 8, 2022 Audit & Finance Committee, the committee received a report from staff and voted unanimously to recommend this action to the Board.
BACKGROUND
Pioneer staff began upgrading technology systems of Pioneer's Board Room around February of 2020 to accommodate record keeping and video streaming access to Board meetings. Based on the organization at the time, these upgrades were based on the current Board size of seven members and in-person meetings. Due to the pandemic, staff has modified the system to accommodate strictly remote meetings and now hybrid meetings. However, due the increased size of the Board and the future return to in-person meetings, staff is recommending hiring a firm to upgrade and improve the Board Room with current technology and meeting requirements. The goal of the upgrade is to create a space that can accommodate more Board Members, allow video streaming to multiple platforms (YouTube, Facebook, Granicus, etc. .. ), and better accommodate hybrid and in-person meetings.
ANALYSIS & DISCUSSION
On August 25, 2022, staff issued a request for proposal (RFP) seeking an estimate for the design and installation of a modernized audio visual and digital signage system that will accommodate Pioneer's current and future organization. As a result, Pioneer has identified the cost for the improvements along with a proposed design.
The design provides for an overhaul of the current system and increased functionality for staff. One of the design elements requested of the system is the ability to adapt to unknown situations. We have requested that the system be capable of operations required for simultaneous in-person and remote meetings. In discussions with the contractor, we have expressed the need for the system to be modified to allow for hosting meetings in two different locations.
Included in the proposed design:
• Replacement of existing TV on SW wall and the installation of two commercial displays for public viewing • Replacement of existing TV on SE wall and the installation of two commercial displays for Board Member viewing
• Relocation of the two existing cameras and the addition of a wide-angle camera for better camera angles
Agenda Item: lg Agenda Date: 12/15/2022
• Installation of a theatrical drape to hide the bathrooms • Installation of four ceiling speakers for improved audio coverage • Addition of 10 desktop microphones for Board Members and staff and the addition of a wireless microphone for the public
• Addition of a broadcast booth for staff to better control the broadcasting and function of the Board Room AV
• An agreement for on-call services after the installation is complete In addition to the improvements suggested by the AV contractor, Pioneer will be upgrading it services with the current video streaming and meeting management software company, Granicus. Upgrading the services with Granicus will allow Pioneer to stream Board meetings across multiple platforms. The new Granicus platform will allow Pioneer to stream to YouTube, Facebook, and to a media player on our website.
With the proposed improvements to the Board Room technology, Pioneer will have the ability for all current Board Members to attend meetings in-person as well as space for future Members, allow for in-person public attendance, and provide an improved, professional video stream. The addition of a wide-angle camera and repositioning of the existing cameras will allow better camera angles for remote viewing. These cameras will also be programmable to allow staff to zoom in on specific Board Members for a better streaming feed.
STRATEGIC PLAN
Strategic Priority 4: Operational Excellence
Reliability is central to our efforts and a core value of Pioneer. By prioritizing operational excellence, we retain our independence and agility as a provider while supporting our community by offering more options for reliable energy.
FISCAL IMPACT
This recommended contract is not-to-exceed $175,000.00. The work will occur during the FY2022/23 fiscal year.
Budget has been identified for most of this project but a budget augmentation of $31,000 is needed to fully fund this improvement.
ATTACHMENTS
1) Resolution - Authorizing the Executive Director to execute an agreement with Alive Media to design and install a new audio and visual system for Pioneer's Board Room not-to-exceed $175,000.00. 2) Board Room Audio Visual, Digital Signage, and furniture Design and Installation for a Public Meeting Setting Request for Proposal - Issued on August 25, 2022.
Before the Governing Board of
Pioneer Community Energy
In the matter of: Adopt a resolution authorizing the
Executive Director to execute an agreement with
Alive Media to design and install a new audio and
visual system for Pioneer's Board Room not-to-exceed $175,000.00 and increase by $31,000 the Finance Division Operations Budget.
Resolution No.: ____ _
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held December 15, 2022, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
Chair of the Governing Board
Attest:
Secretary
WHEREAS, it is in the interest of Pioneer Community Energy ("Pioneer") to develop its facilities to accommodate Board meeting functions and encourage public participation; and WHEREAS, the objective of the Boardroom audio and visual upgrade is to provide a modern space to hold Board meetings; and
WHEREAS, a budget increase of $31,000.00 is needed to complete the improvement.
NOW THEREFORE, BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:
1. The above recitals are true and correct.
2. Approves a $31,000 budget increase to the Finance Division Operations.
3. The Governing Board hereby authorizes the Executive Director to execute an agreement not-to-exceed $175,000 with Alive Media to design and install a new audio and visual system for Pioneer's Boardroom.
··--f/ONEER
CO 'UNITY ENE. GY
REQUEST FOR PROPOSALS
FOR
Board Room Audio Visual, Digital Signage,
and furniture Design and Installation for a
Public Meeting Setting
ISSUED ON:
August 25, 2022
PROPOSALS DUE:
September 22, 2022
3:00 p.m. Pacific Time
- 1-
TABLE OF CONTENTS
Page
I. INTRODUCTION 3
II. CONDITIONS GOVERNING the PROCUREMENT 5
III. EVALUATION 11
IV. RESPONSE FORMAT AND ORGANIZATION 12
V. REQUIREMENTS and CONTRACTOR SUBMITTALS 13
Attachments:
1. Consultant Services Agreement - Attachment A
2. Diagram of Board Room - Attachment B
3. California Labor Code Compliance - Attachment C
4. Payment Bond Form - Attachment D
5. Performance Bond Form - Attachment E
- 2 -
I. Introduction
1. Request
Pioneer Community Energy seeks design and cost Proposals from qualified contractors ("Contractor(s)") for the installation of an Audio Visual (AV) and Digital Signage (DS) system for broadcasting Board meetings. This system should be capable of streaming to multiple platforms simultaneously (i.e. Zoom, YouTube, Granicus). The design of the system may include modifications to the existing AV system or a complete replacement, reconfiguration of Board room including the addition of a new furniture solution, and the addition of a broadcast booth. This project is located at our office located at 2510 Warren Drive, Suite B and C Rocklin, CA. Contractor must possess and/or obtain all required certifications and/or licenses in accordance with State, Federal, and Local laws and regulations required to perform the services listed in this RFP, including a California State Contractors Board (CSLB) license with the appropriate classification and registration with the Department of Industrial Relations (DIR).
The objective of this project is to modernize the Board room with the latest AV and DS technology. Pioneer is looking for a vendor to provide professional services for this effort by designing and implementing upgrades to the Board room.
The system should make public meeting information more accessible and transparent. Pioneer seeks a system that will provide the capability to have an in-person and virtual meeting simultaneously (hybrid).
2.Backqround
Pioneer serves the electric needs of approximately 150,000 residential and business accounts through a community-controlled power supplier that offers electricity at competitive rates compared to Pacific Gas & Electric's (PGE) customer generation rates. Six (6) communities in Placer County partnered to create Pioneer which commenced services in February 2018. In January 2022, Pioneer expanded its service territory to include El Dorado County and the City of Placerville.
Pioneer is governed by a Board of Directors consisting of representatives from each Member Agency. Pioneer's Executive Director administers the day-to-day affairs of Pioneer and is appointed by the Board of Directors.
- 3 -
3. Scope of Request
The following items are to be included in the Proposal:
• Proposed design of Board Room AV and DS.
o Include locations of displays and audio/visual components. o Include suggested furniture products and layout to
maximize in-person participation. At a minimum the solution should allow space for 16 Board Members, 4 staff members, and 20 members of the public.
o Proposed system must be capable of connecting to Pioneer's existing broadcasting platform, Granicus (and to similar meeting and agenda management service).
o Ability to simulcast to different platforms (Granicus, Zoom, YouTube, Facebook, etc ... ).
• Cost Proposal for installation.
o Itemize AV and DS equipment cost.
• Proposed training plan for new system.
• Option for post install on-call support services.
• List of at least three references.
• Description of at least three similar projects.
• Timeline for installation.
4. Consultant Services Agreement
A copy of Pioneer's standard Consulting Services Agreement is attached as Attachment A to this RFP. By submitting a Proposal, Contractor agrees that it will enter into the Agreement using the attached form with no exceptions to the terms included therein.
The contract between the selected Contractor and Pioneer, if one is entered, will consist of Pioneer's standard Consulting Services Agreement including all Exhibits thereto, this RFP and all attachments thereto, and the selected proposal (collectively, "Contract Documents."). In the event of any conflict or inconsistency between any of the Contract Documents, and unless otherwise expressly provided in the Consulting Services Agreement, the provisions of the Consulting Services Agreement, then this RFP, then the proposal, will govern.
-4-
5. Point of Contact
Any inquiries or requests regarding this procurement must be submitted to the following Contact in writing. Contractors may contact ONLY the Contact regarding this RFP.
Steve Lund
Program Specialist II
Pioneer Community Energy
2510 Warren Drive, Ste B
Rocklin, CA 95677
E-mail: [email protected]
II. Conditions Governing the Procurement
This section of the RFP contains the anticipated schedule for the procurement and describes the procurement events and the conditions governing the procurement. Pioneer will make every effort to adhere to the anticipated schedule below.
1. Sequence of Events
Action Date
1 Issuance of RFP August 25, 2022
Pre-Proposal Conference (Contractors must arrive September 6, 2022 2 within 10 minutes of start) 10:00am
3 Deadline to Submit Written Questions September 9, 2022 Response to Written Questions/RFP Addendum, if
4 Applicable September 15, 2022
5 Deadline for Submission of Proposals September 22, 2022 6 Proposal Evaluation September 29, 2022
7 Presentation and Interviews of Finalists October 6, 2022 8 Notice of Intent to Award October 13, 2022
9 Commencement of Contract October 20, 2022
*Depending on the contract amount, Board approval may be required, delaying items 8 and 9.
2. Explanation Of Events
Pre-Proposal Conference
Mandatory pre-Proposal conference will be held as indicated Section II Part 1. Any questions during this event will be noted and answered with the response to written questions submitted.
- 5 -
Deadline to Submit Written Questions
Contractors may submit written questions to this RFP until the deadline as indicated in Section II Part 1. Written questions may be submitted to the Contact via e-mail. Please submit all questions in writing by the due date listed to the Contact in Section I Part 5.
Response to Written Ouestions/RFP Addendum
Answers to all questions received by the deadline and any material change to the RFP will be listed on an addendum to the RFP.
Additional written questions must be received by the Contact no later than two (2) days after any addendum is posted. Pioneer reserves the right to post additional addenda until the RFP closing date and time.
Deadline for Submission of Proposals
Proposals must be actually received no later than the deadline specified in Section II Part 1. All received proposals will be time stamped. Contractors bear all risks of untimely or non-delivery of Proposals not hand delivered.
All Proposals sent via express carrier should be addressed as follows:
Steve Lund
Program Specialist II
Pioneer Community Energy
2510 Warren Drive, Ste B
Rocklin, CA 95677
E-mail: [email protected]
Proposals must be sealed and labeled on the outside of the package to clearly indicate that they are in response to this RFP and a complete title must be referenced on the cover page.
Proposal Evaluation
An Evaluation Committee (Committee) will review and evaluate the Proposals and make a recommendation for an award. Evaluation parameters are described in Section III.
- 6 -
Presentation and Interviews of Finalists (Pioneer's Option} At Pioneer's option, one or more Contractors may be required to provide a presentation of their proposed services. Presentations will be held at a date, time, and location to be determined. No adjustments in pricing are permitted during any presentation.
Final Negotiations
At Pioneer's option, one or more Contractors may be selected to enter final negotiations with the intent of award.
Notice of Intent to Award
Pioneer will send an e-mail to all Contractors informing them of the Proposal that was selected, if any.
Commencement of Contract
The date the agreement, if any, will become effective.
3. General
1.Incurring Cost
Contractors bear any and all costs of preparing and submitting their Proposals. Issuance of this RFP and receipt of Proposals does not commit Pioneer to award a contract, nor does it commit Pioneer to pay any cost incurred in the submission of the Proposal, or in making necessary studies or designs for the preparation thereof, or to procure or contract for services or supplies. Further, no reimbursable cost may be incurred in anticipation of a contract award.
2.Claims Against Pioneer
Neither the organization nor any of the representatives shall have any claims whatsoever against Pioneer, or any of its respective officials, agents, or employees arising out of or relating to this RFP or these RFP procedures, except as set forth in the terms of a written agreement between Pioneer and a Contractor.
- 7 -
3.Guarantee of Proposal
Responses to this RFP, including Proposal prices, will be considered firm and irrevocable for ninety (90) days after the due date for receipt of Proposals.
4.Basis for Proposal
Only information listed in this RFP or by information supplied by Pioneer in writing by the Contact listed in Section 1 Part 5 should be used as the basis for the preparation of Contractor's Proposal.
5.Form Of Proposals
No oral, telephone, or facsimile Proposals will be accepted. The format and organization of Proposals shall conform to Section IV below.
6.Amended Proposal
A Contractor may submit an amended Proposal before the
deadline for receipt of Proposals. Such amended Proposals must be complete replacements for a previously submitted Proposal and must be clearly identified in a written format.
Pioneer will not merge, collate, or assemble Proposal materials.
7.Withdrawal of Proposal
Contractors will be allowed to withdraw their Proposals at any time prior to the deadline for receipt of Proposals. The Contractor must submit a written withdrawal request signed by the Contractor's duly authorized representative addressed and submitted to Pioneer.
8.Late Response
For a Proposal to be considered, the Proposal must be delivered in person or via courier to the place specified above in Submission of Proposal, and actually received, no later than the RFP due date and time. Pioneer's time and date stamp will be conclusive as to the timeliness of Proposals.
9.No Public Proposal Opening
There will be no public opening of Proposals for this RFP. - 8 -
10.California Public Records Act (CPRA)
All Proposals become the property of Pioneer, which is a public agency subject to the disclosure requirements of the California Public Records Act ("CPRA"). DO NOT SUBMIT CONFIDENTIAL INFORMATION. Any notice of confidentiality or trade secrets, or similar kind of notice, will be disregarded.
11.Confidentia lity
All data and information obtained from or on behalf of Pioneer by the Contractor and its agents in this RFP process, including reports, recommendations, specifications, and data, shall be treated by the Contractor and its agents as confidential. The Contractor and its agents shall not disclose or communicate this information to a third party or use it in advertising, publicity, propaganda, or in another job or jobs, unless written consent is obtained from Pioneer.
Each Proposal will be treated as confidential until a written recommendation to award a contract, if any, is made to the Pioneer Board, this RFP process is terminated, or all Proposals are rejected. Thereafter, all Proposals will be subject to disclosure.
12.Electronic Mail Address
Most of the communication regarding this procurement will be conducted by electronic mail (e-mail). Potential Contractors agree to provide the Contact with a valid e-mail address to receive this correspondence.
13.Use of Electronic Versions of the RFP
This RFP is being made available by electronic means. If accepted by such means, the Contractor acknowledges and accepts full responsibility to ensure that no changes are made to the RFP. In the event of conflict between a version of the RFP in the Contractor's possession and the version maintained by Contact, the version maintained by Contact shall govern.
14.Pioneer Rights
Pioneer reserves the right to do any of the following at any time:
- 9 -
i. Reject any or all Proposal(s), without indicating any reason for such rejection.
ii. Waive or correct any minor or inadvertent defect,
irregularity or technical error in a Proposal or the RFP process, or as part of any subsequent contract
negotiation.
iii. Request that Contractors supplement or modify all or certain aspects of their Proposals or other documents or materials submitted.
iv. Terminate the RFP, and at its option, issue a new RFP. v. Procure any equipment or services specified in this RFP by other means.
vi. Modify the selection process, the specifications, or requirements for materials or services, or the contents or format of the Proposals.
vii. Extend a deadline specified in this RFP, including deadlines for accepting Proposals.
viii. Negotiate with any or none of the Contractors.
ix. Modify in the final agreement any terms and/or
conditions described in this RFP.
x. Terminate failed negotiations with any Contractor without liability and negotiate with other Contractor(s).
xi. Disqualify any Contractor based on a real or apparent conflict of interest, or evidence of collusion that is
disclosed by the Proposal or other data availability to Pioneer.
xii. Eliminate, reject, or disqualify a Proposal of any Contractor who is not a responsible Contractor or fails to submit a responsive offer as determined solely by
Pioneer; and/or
xiii. Accept all or a portion of a Contractor's Proposal. -10-
III. Evaluation
1. Factors
The Evaluation Committee (Committee) made up of Pioneer staff will evaluate and rank all proposals meeting the requirements of this RFP.
Rankings will be based on a combination of the scoring factors below.
In an effort to provide as much objectivity in the selection process as possible, Pioneer will use a scoring system, with a 100% score being the highest, as the basis to determine one or more Contractors with which to negotiate a contract. The scoring will be weighted as follows:
Scoring Factor Percentage
Price
Demonstrated experience,
references, and qualifications
Quality and expected lifespan of
specified equipment
Quality and responsiveness of
proposal including acceptance of
contract terms
Length of warranty on specified
equipment and materials
Upon completion of the rankings, the Selection Committee may interview the top 2 or 3 ranked Contractors.
40%
20%
20%
10%
10%
Notwithstanding the scoring process referenced above, Pioneer reserves the right to negotiate further with the top 2 or 3 scoring Contractors. Pioneer may negotiate until a Contractor and proposal are determined to provide the greatest benefit and/or best value to Pioneer. If that Contractor and Pioneer fail to agree on terms and conditions acceptable to Pioneer within a reasonable time, as determined by Pioneer, Pioneer may terminate those negotiations and begin negotiations with the next proposer providing the greatest benefit and/or best value to Pioneer.
Once terms are agreed upon, that Contractor will be invited to enter into a Consultant Services Agreement to perform the work, if deemed to be in Pioneer's best interest.
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IV. Response Format and Organization
This section contains relevant information Contractors should use for the preparation of their Proposals.
1. Number of Responses
Contractors must submit only one (1) written Proposal but may include more than one (1) option in the Proposal.
2. Original and Copies
Proposals submitted in person or via courier must contain original signatures on the necessary forms and must be received on or before the closing date and time for receipt of Proposals.
Contractors shall provide one (1) electronic copy of their Proposal in emailed or USB flash drive format, readable by Microsoft Office software. If emailed, please ensure an acknowledgement reply email is received.
3. Proposal Format
All Proposals shall be typewritten on standard 8-1/2"x11" paper (larger paper is permissible for charts, spreadsheets, etc.). Hand copies should utilize both sides of the paper where practical.
The Proposal should be organized and indexed in the following format and must contain, at a minimum, the applicable items in the sequence indicated:
Table of Contents (Tabs 1 through 11)
Tab 1: Cover Letter
Tab 2: Table of Contents
Tab 3: Executive Summary
Tab 4: Contractors Qualifications
Tab 5: Sub-Contractor Qualifications
Tab 6: Experience and References
Tab 7: Project Plan
Tab 8: Stability/Strength and Reputation
Tab 9: Proposed Design
Tab 10: Cost Proposal
Tab 11: Equipment List
Tab 12: Additional Information
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4. Proposal Preparation Instructions
Within each section of their Proposal, Contractors should address the items in the order in which they appear in this RFP. All forms provided in the RFP shall be thoroughly completed and included in the appropriate section of the Proposal.
5. Nonconforming Submissions
A submission may be construed as a nonconforming Proposal, ineligible for consideration, or incomplete if it does not comply with the requirements of this RFP.
V. Requirements and Contractor Submittals
This section contains requirements and relevant information Contractors should use for the preparation of their Proposals. Contractors should thoroughly respond to each requirement.
1. Cover Letter
• Title of this RFP
• Name and mailing address of Contractor (include physical location if mailing address is a PO Box)
• Contact person, Email address, telephone number, and fax number.
Pioneer will use email to notify the organization of critical developments such as interview schedules, notification of selection/non-selection, etc. Therefore, it is essential to identify one or more contact persons who have frequent access to email.
Pioneer will not be responsible for delivery failure of email due to firewalls, spam filters, or individuals' failure to retrieve email messages. Pioneer will not attempt to re-deliver any messages which fail due to no fault of Pioneer.
• Provide the name and contact information of the person authorized to negotiate and contractually obligate the
organization. If this is the same person listed as the contact, state "same as contact person."
• Acknowledge receipt of all addenda to this RFP.
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• Signature Requirements - The Cover Letter must be signed by an officer empowered by the Contractor to sign such material and thereby commit the Contractor to the obligations contained in the RFP response. Further, the signing and submission of a response shall indicate the intention of the proposer to adhere to the provisions described in this RFP and a commitment to enter a binding contract.
o Proposals submitted on behalf of a Partnership shall be signed in the firm name by a partner or the Attorney-In-Fact. If signed by the Attorney-In-Fact, there shall be attached to the Proposal a Power-Of-Attorney evidencing authority to sign Proposals, dated the same date as the Proposal and executed by all partners of the firm.
o Proposals which are submitted on behalf of a Corporation shall have the correct corporate name thereon and the
actual signature of the authorized officer of the corporation written (not typed) below the corporate name. The title of the office held by the person signing for the corporation shall appear below the signature of the officer.
o Proposals which are submitted by an Individual doing
business under a firm name ("dba") shall be signed in the name of the individual doing business under the proper
organization name and style.
2. Executive Summary
Include a one-or two-page executive summary that provides the Committee with an overview of the proposing organization.
3. Contractor's Qualifications
Describe the firm and provide a statement of the firm's qualifications for performing requested services. Identify the services which would be completed by the organization's staff and those that would be provided by sub-contractors, if any. Each proposer shall be a licensed contractor pursuant to the Business and Professions Code and maintain the appropriate license through the completion of this project. The firm's CSLB License Number and classification, and DIR registration number shall be included in this section for verification by Pioneer.
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4. Sub-contractor Qualifications
Identify any sub-contractors that are proposed to be utilized to supplement the organization's staff. Include the company name, business address, CSLB license number, DIR registration number, and a description of the work to be completed for each sub-contractor. If no sub-contractor will be used, state "No sub-contractor will be used in the completion of this project."
5. Experience and References
Provide a summary of the firm's experience in completing projects of similar or greater size and costwithin the last five years. Provide a minimum of three references for related projects, including dates, contact person including their email address and phone number, and a brief description of the project or agreement. Public sector references are preferred. By submitting a Proposal, each Contractor waives and releases Pioneer, in advance, from any and all claims and liabilities arising from Pioneer contacting a Contractor's references.
6. Project Plan
Provide a detailed description of the organization's approach to the successful completion of this project. Include a proposed work timeline to accomplish all the required tasks. Describe the firm's approach to managing the project and procedures for minimizing occupant disruptions. Include a proposed training Pioneer staff training plan.
7. Stability/Strength and Reputation
1. Corporate information:
i. The jurisdiction in which the Contractor is organized and the date of such organization.
ii. Length of time Contractor has been operating.
iii. A description of the Contractor's organization, including names of principals, number of employees, client base,
areas of specialization and expertise, and any other
information that will assist the Committee in formulating an opinion about the stability and strength of the
organization.
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2. Provide a complete disclosure if Contractor, its subsidiaries, parent, other corporate affiliates, or subcontractors have defaulted in its performance on a contract during the past five (5) years, including whether or not the other party terminated the contract. If so, identify the parties involved and the circumstances of the default or termination.
3. A list of any lawsuits and/or criminal charges filed against the Contractor, its subsidiaries, parent, other corporate affiliates, or subcontractors in the past five (5) years, involving the performance of services under contract, and the outcome of those lawsuits. Identify the parties involved and
circumstances. Also, describe any civil or criminal litigation or investigation pending against the Contractor and /or any owner thereof, involving the performance of services under contract, or fraud or theft involving any customer of Contractor.
4. Contractors shall provide a certificate(s) of insurance or a copy of insurance declaration page(s) with their Proposals as written evidence of their ability to meet the insurance certificate and other appliable Pioneer insurance requirements in accordance with the provisions listed in Attachment A Exhibit D of this RFP.
In addition, Contractors shall provide a letter from an insurance agent or other appropriate insuring authority documenting their willingness and ability to endorse their insurance policies making Pioneer an additional insured.
Contractor must provide this information with their Proposal and not defer a submission to a later date.
8. Proposed Design
Provide a proposed design of the Board room including furniture layout, positioning of all AV equipment and Digital Signage, and the location of AV/DS control center. More than one design may be submitted if accompanied by a related cost Proposal.
9. Cost Proposa I
Respondents shall itemize pricing as follows:
1. Installation of the proposed design.
2. Equipment required for the proposed design.
3. Optional equipment, if applicable.
4. Future on-call support services.
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10. Equipment List
Provide a list of all major equipment, including manufacturers specifications and all related warranties.
11. Public Works Registration and Prevailing Wages:
The selected Contractor is required to comply with all requirements set forth in California Labor Code Compliance, Attachment C hereto.
Notice is hereby given that this project is a public works project within the requirements of Division 2, Part 7, Chapter 1 of the California Labor Code. The successful Contractor shall be required to pay its workers on this Project a sum not less than the general prevailing rate (applicable at the time of the RFP posting date) of per diem wages and not less than the general prevailing rate for holiday and overtime work for work of a similar character in the locality in which the Project is performed, and to otherwise comply with California Labor Code Sections 1720-1861.
Each Contractor must be registered with DIR pursuant to Labor Code section 1725.5 by the due date for Proposals. Failure of a Contractor to be registered by that date will render its Proposal non-responsive and preclude award. The selected Contractor's subcontractors, truckers and any suppliers and/or vendors subject to California's prevailing wage laws are required to be registered with DIR pursuant to Labor Code section 1725.5 at the time of Proposal submittal for members of the Contractor's team, or by the bidding deadline for trade work awarded after award of the project.
12. Additional Requirements
1. Compliance with law. Consultant/Contractor shall comply with all applicable laws, ordinances, and codes of federal, state and local governments.
2. Consultant Services Agreement. Contractor will be required to sign Pioneer's Consultant Services Agreement upon award of contract.
3. Contractor will be required to provide a payment and performance bond, each in an amount not less than 100% of the contract amount, using the forms attached hereto or using forms acceptable to Pioneer.
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Administering Agency:
Contract No.
Contract Description:
Attachment A
Pioneer Community Energy
CONSULTANT SERVICES AGREEMENT
THIS AGREEMENT is made at Rocklin, California, as of ______ , 2021, by and between Pioneer Community Energy, ("Pioneer"), and ("Consultant"), who agree as follows:
1. Services. Subject to the tenns and conditions set forth in this Agreement, Consultant shall provide the services described in Exhibit A. Consultant shall provide said services at the time, place, and in the manner specified in Exhibit A.
2. Payment. Pioneer shall pay Consultant for services rendered pursuant to this Agreement at the time and in the amount set forth in Exhibit B. The payments specified in Exhibit B shall be the only payments made to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all billings for said services to Pioneer in the manner specified therein, or, if no manner specified, then according to the usual and customary procedures which Consultant uses for billing clients similar to Pioneer. The amount of the contract shall not exceed ___ (written) ____ Dollars ($_numerical_).
3. Facilities, Equipment and Other Materials, and Obligations of Pioneer. Unless otherwise specified in Exhibit C, Consultant shall, at its sole cost and expense, furnish all facilities, equipment, and other materials which may be required for furnishing services pursuant to this Agreement.
4. Exhibits. All exhibits referred to herein will be attached hereto and by this reference incorporated herein.
5. Time for Performance. Time is of the essence. Failure of Consultant to perform any services within the time limits set forth in Exhibit A shall constitute material breach of this contract.
6. Independent Consultant. At all times during the term of this Agreement, Consultant shall be an independent Consultant and shall not be an employee of Pioneer. Pioneer shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement. Pioneer shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement.
7. Licenses, Permits, Etc. Consultant represents and warrants to Pioneer that it has all licenses, permits, qualifications, and approvals of whatsoever nature, which are legally required for Consultant to practice its profession. Consultant represents and warrants to Pioneer that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the tenn of this Agreement, any licenses, permits, and approvals which are legally required for Consultant to practice its profession at the time the services are performed.
8. Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for the satisfactory performance of Consultant's
obligations pursuant to this Agreement. Neither party shall be considered in default of this Agreement to the extent perfonnance is prevented or delayed by any cause, present or future, which is beyond the reasonable control of the party.
9. Hold Harmless and Indemnification Agreement. At all times during the performance of this agreement, Consultant agrees to protect, defend, and indemnify Pioneer in accordance with the provisions contained in Exhibit D.
10. Insurance. Consultant shall file with Pioneer concurrently herewith a Certificate of Insurance, in companies acceptable to Pioneer, with a Best's Rating of no less than A-:VII, for the coverage shown in Exhibit D. All costs of complying with these insurance requirements shall be included in Consultant's fee(s). These costs shall not be considered a "reimbursable" expense under any circumstances.
11. Consultant Not Agent. Except as Pioneer may specify in writing Consultant shall have no authority, express or implied, to act on behalf of Pioneer in any capacity whatsoever as an agent.
Consultant shall have no authority, express or implied pursuant to this Agreement to Bind Pioneer to any obligation whatsoever.
12. Assignment Prohibited. Consultant may assign its rights and obligations under this Agreement only upon the prior written approval of Pioneer, said approval to be in the sole discretion of Pioneer.
13. Personnel.
A. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that Pioneer, in its sole discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by Consultant to perform services pursuant to this Agreement, including those members of the Project Team as explained below, Consultant shall remove any such person immediately upon receiving notice from Pioneer of the desire of Pioneer for removal of such person or persons.
B. Notwithstanding the foregoing, if specific persons are designated as the "Project Team" in Exhibit A, Consultant agrees to perfonn the work under this agreement with those individuals identified. Reassigmnent or substitution of individuals or subcontractors named in the Project Team by Consultant without the prior written consent of Pioneer shall be grounds for cancellation of the agreement by Pioneer, and payment shall be made pursuant to Section 15 (Tennination) of this Agreement only for that work performed by Project Team members.
14. Standard of Performance. Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession. All products of whatsoever nature which Consultant delivers to Pioneer pursuant to this Agreement shall be prepared in a substantial first class and workmanlike manner and conform to the standards or quality normally observed by a person practicing in Consultant's profession.
15. Termination.
A. Pioneer shall have the right to terminate this Agreement at any time by giving notice in writing of such termination to Consultant. In the event Pioneer shall give notice of termination, Consultant shall immediately cease rendering service upon receipt of such written notice, pursuant to this Agreement. In the event Pioneer shall terminate this Agreement:
1) Consultant shall deliver copies of all writings prepared by it pursuant to this Agreement. The term "writings" shall be construed to mean and include: handwriting, typewriting, printing, Photostatting, photographing, and every other means of recording upon any tangible thing any form of communication or representation, including letters, words, pictures, sounds, or symbols, or combinations thereof. 2) Pioneer shall have full ownership and control of all such writings delivered by Consultant pursuant to this Agreement.
3) Pioneer shall pay Consultant the reasonable value of services rendered by Consultant to the date of termination pursuant to this Agreement not to exceed the amount documented by Consultant and approved by Pioneer as work accomplished to date; provided, however, that in no event shall any payment hereunder exceed the amount of the agreement specified in Exhibit B, and further provided, however, Pioneer shall not in any manner be liable for lost profits which might have been made by Consultant had Consultant completed the services required by this Agreement. In this regard, Consultant shall furnish to Pioneer such financial information as in the judgment of Pioneer is necessary to determine the reasonable value of the services rendered by Consultant. The foregoing is cumulative and does not affect any right or remedy, which Pioneer may have in law or equity.
B. Consultant may terminate its services under this Agreement upon thirty- (30) working days' advance written notice to Pioneer.
16. Contract Term. The term of this contract is two years, or until contract is terminated pursuant to Section 15 of this contract. Up to two one-year extensions may be negotiated within 90 days of contract expiration.
17. Non-Discrimination. Consultant shall not discriminate in its employment practices because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, or sexual orientation in contravention of the California Fair Employment and Housing Act, Government Code section 12900 ~ ~-
18. Records. Consultant shall maintain, at all times, complete detailed records with regard to work performed under this agreement in a form acceptable to Pioneer, and Pioneer shall have the right to inspect such records at any reasonable time. Notwithstanding any other tenns of this agreement, no payments shall be made to Consultant until Pioneer is satisfied that work of such value has been rendered pursuant to this agreement. However, Pioneer shall not unreasonably withhold payment and, if a dispute exists, the withheld payment shall be proportional only to the item in dispute.
19. Ownership of Information. All professional and technical information developed under this Agreement and all work sheets, reports, and related data shall become the property of Pioneer, and Consultant agrees to deliver reproducible copies of such documents to Pioneer on completion of the services hereunder. Pioneer agrees to indemnify and hold Consultant harmless from any claim arising out ofreuse of the information for other than this project.
20. Waiver. One or more waivers by one party of any major or minor breach or default of any provision, term, condition, or covenant of this Agreement shall not operate as a waiver of any subsequent breach or default by the other party.
21. Conflict of Interest. Consultant certifies that no official or employee of Pioneer, nor any business entity in which an official of Pioneer has an interest, has been employed or retained to solicit or aid
in the procuring of this agreement. In addition, Consultant agrees that no such person will be employed in the performance of this agreement without immediately notifying Pioneer.
22. Entirety of Agreement. This Agreement contains the entire agreement of Pioneer and Consultant with respect to the subject matter hereof, and no other agreement, statement, or promise made by any party, or to any employee, officer or agent of any party, which is not contained in this Agreement, shall be binding or valid.
23 . Alteration. No waiver, alteration, modification, or termination of this Agreement shall be valid unless made in writing and signed by all parties, except as expressly provided in Section 15, Termination.
24. Governing Law. This Agreement is executed and intended to be performed in the State of California, and the laws of that State shall govern its interpretation and effect. Any legal proceedings on this agreement shall be brought under the jurisdiction of the Superior Court of County of Placer, State of California, and Consultant hereby expressly waives those provisions in California Code of Civil Procedure §394 that may have allowed it to transfer venue to another jurisdiction.
25. Notification. Any notice or demand desired or required to be given hereunder shall be in writing and deemed given when personally delivered or deposited in the mail, postage prepaid, and addressed to the parties as follows:
PIONEER COMMUNITY ENERGY:
Pioneer Community Energy
Attn:
2510 Warren Drive Suite B
Rocklin, CA 95677
[email protected]. gov
Phone:
CONSULTANT:
Phone: - ---- - -
Any notice so delivered personally shall be deemed to be received on the date of delivery, and any notice mailed shall be deemed to be received five (5) days after the date on which it was mailed.
Executed as of the day first above stated:
PIONEER COMMUNITY ENERGY
By:
Printed Name/Title: Don Eckert, Executive Director
Approved as to Form - General Counsel:
By:
Printed Name/Title: Inder Khalsa, General Counsel
[NAME OF CONSULTANT]
By:
Name:
Title: Owner
By:
Name:
Title:
*If Consultant is a corporation, this agreement must be signed by a corporate officer, either the President or Vice President, unless an authenticated corporate resolution is attached delegating authority to a single officer or other officers to bind the corporation.
Exhibits
A. Scope of Services
B. Payment for Services Rendered
C. Facilities, Equipment and Other Obligations of Pioneer D. Hold Harmless Agreement and Insurance Requirements
to Consultant Services Agreement
EXHIBIT A
SCOPE OF SERVICES
EXHIBITB
PAYMENT FOR SERVICES RENDERED
Maximum Limit & Fee Schedule
The total amount for services rendered not to exceed $
-----
And, if applicable
The maximum hourly rate shall not exceed $ ___ _ per hour.
Invoices
Invoices shall include a list of work performed by billable hour including date, hours and services provided.
Work performed by Consultant will be subject to final acceptance by Pioneer program manager(s).
Submit all invoices to:
Pioneer Community Energy
Attn: Eric Acedo
[email protected]
2510 Warren Drive, Suite B
Rocklin, CA 95677
to Consultant Services Agreement
EXHIBITC
FACILITIES, EQUIPMENT, AND OTHER
MATERIALS, AND OBLIGATIONS OF PIONEER
(Specify all equipment and facilities to be provided or made available by Pioneer, and any other Pioneer obligations.)
to Consultant Services Agreement
(typically)
NOT APPLICABLE
EXHIBITD
HOLD HARMLESS AGREEMENT
AND INSURANCE REQUIREMENTS
1. HOLD HARMLESS AND INDEMNIFICATION AGREEMENT
The CONSULTANT hereby agrees to protect, defend, indemnify, and hold PIONEER free and hannless from any and all losses, claims, liens, demands, and causes of action of every kind and character including, but not limited to, the amounts of judgments, penalties, interest, court costs, legal fees, and all other expenses incurred by PIONEER arising in favor of any party, including claims, liens, debts, personal injuries, death, or damages to property (including employees or property of PIONEER) and without limitation by enumeration, all other claims or demands of every character occurring or in any way incident to, in connection with or arising directly or indirectly out of, the contract or agreement. CONSULT ANT agrees to investigate, handle, respond to, provide defense for, and defend any such claims, demand, or suit at the sole expense of the CONSULTANT.
CONSULT ANT also agrees to bear all other costs and expenses related thereto, even if the claim or claims alleged are groundless, false, or fraudulent. This provision is not intended to create any cause of action in favor of any third party against CONSULTANT or PIONEER or to enlarge in any way the CONSULT ANT'S liability but is intended solely to provide for indemnification of PIONEER from liability for damages or injuries to third persons or property arising from CONSULTANT'S perfonnance pursuant to this contract or agreement.
As used above, the term PIONEER means Pioneer or its officers, agents, employees, and volunteers.
2. INSURANCE:
CONSULTANT shall file with PIONEER concurrently herewith a Certificate of Insurance, in companies acceptable to PIONEER, with a Best's Rating ofno less than A-:VII showing.
3. WORKER'S COMPENSATION AND EMPLOYERS LIABILITY INSURANCE:
Worker's Compensation Insurance shall be provided as required by any applicable law or regulation.
Employer's liability insurance shall be provided in amounts not less than one million dollars ($1,000,000) each accident for bodily injury by accident, one million dollars ($1,000,000) policy limit for bodily injury by disease, and one million dollars ($1,000,000) each employee for bodily injury by disease.
If there is an exposure of injury to CONSULTANT'S employees under the U.S. Longshoremen's and Harbor Worker's Compensation Act, the Jones Act, or under laws, regulations, or statutes applicable to maritime employees, coverage shall be included for such injuries or claims.
Each Worker's Compensation policy shall be endorsed with the following specific language:
Cancellation Notice - "This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy".
Waiver of Subrogation - The workers' compensation policy shall be endorsed to state that the workers' compensation carrier waives its right of subrogation against Pioneer, its officers, directors, officials,
to Consultant Services Agreement
employees, agents or volunteers, which might arise by reason of payment under such policy in connection with performance under this agreement by the CONSULT ANT.
CONSULTANT shall require all SUBCONTRACTORS to maintain adequate Workers' Compensation insurance. Certificates of Workers' Compensation shall be filed forthwith with Pioneer upon demand.
4. GENERAL LIABILITY INSURANCE:
A. Comprehensive General Liability or Commercial General Liability insurance covering all operations by or on behalf of CONSUL TANT, providing insurance for bodily injury liability and property damage liability for the limits ofliability indicated below and including coverage for:
(1) Contractual liability insuring the obligations assumed by CONSULTANT in this Agreement.
B. One of the following forms is required:
(1) Comprehensive General Liability;
(2) Commercial General Liability (Occurrence); or
(3) Commercial General Liability (Claims Made).
C. If CONSULT ANT carries a Comprehensive General Liability policy, the limits of liability shall not be less than a Combined Single Limit for bodily injury, property damage, and Personal Injury Liability of:
One million dollars ($1,000,000) each occurrence
➔ Two million dollars ($2,000,000) aggregate
D. If CONSULTANT carries a Commercial General Liability (Occurrence) policy:
( 1) The limits of liability shall not be less than:
One million dollars ($1,000,000) each occurrence (combined single limit for bodily injury and property damage)
One million dollars ($1,000,000) for Products-Completed Operations ➔ Two million dollars ($2,000,000) General Aggregate
(2) If the policy does not have an endorsement providing that the General Aggregate Limit applies separately, or if defense costs are included in the aggregate limits, then the required aggregate limits shall be two million dollars ($2,000,000).
E. Special Claims Made Policy Form Provisions:
CONSULTANT shall not provide a Commercial General Liability (Claims Made) policy without the express prior written consent of PIONEER, which consent, if given, shall be subject to the following conditions:
(1) The limits ofliability shall not be less than:
to Consultant Services Agreement
One million dollars ($1,000,000) each occurrence ( combined single limit for bodily injury and property damage)
One million dollars ($1,000,000) aggregate for Products Completed Operations ➔ Two million dollars ($2,000,000) General Aggregate
(2) The insurance coverage provided by CONSULT ANT shall contain language providing coverage up to one ( 1) year following the completion of the contract in order to provide insurance coverage for the hold harmless provisions herein if the policy is a claims-made policy.
Confonnity of Coverages - If more than one policy is used to meet the required coverages, such as a separate umbrella policy, such policies shall be consistent with all other applicable policies used to meet these minimum requirements. For example, all policies shall be Occurrence Liability policies or all shall be Claims Made Liability policies, if approved by Pioneer as noted above. In no cases shall the types of polices be different.
5. ENDORSEMENTS:
Each Comprehensive or Commercial General Liability policy shall be endorsed with the following specific language:
A. "Pioneer Community Energy, its officers, agents, employees, and volunteers are to be covered as insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement."
B. "The insurance provided by the Consultant, including any excess liability or umbrella form coverage, is primary coverage to Pioneer Community Energy with respect to any insurance or self-insurance programs maintained by Pioneer Community Energy and no insurance held or owned by Pioneer Community Energy shall be called upon to contribute to a loss." C. "This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy."
6. AUTOMOBILE LIABILITY INSURANCE:
7. Automobile Liability insurance covering bodily injury and property damage in an amount no less than one million dollars ($1,000,000) combined single limit for each occurrence.
Covered vehicles shall include owned, non-owned, and hired automobiles/trucks.
ADDITIONAL REQUIREMENTS:
Premium Payments - The insurance companies shall have no recourse against PIONEER and funding agencies, its officers and employees or any of them for payment of any premiums or assessments under any policy issued by a mutual insurance company.
Policy Deductibles - The CONSULT ANT shall be responsible for all deductibles in all of the CONSULTANT's insurance policies. The maximum amount of allowable deductible for insurance coverage required herein shall be $25,000.
to Consultant Services Agreement
CONSULTANT's Obligations - CONSULTANT's indemnity and other obligations shall not be limited by the foregoing insurance requirements and shall survive the expiration of this agreement.
Verification of Coverage - CONSULT ANT shall furnish Pioneer with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by Pioneer before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONSULT ANT' s obligation to provide them. Pioneer reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
Material Breach - Failure of the CONSULTANT to maintain the insurance required by this agreement, or to comply with any of the requirements of this section, shall constitute a material breach of the entire agreement.
to Consultant Services Agreement
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Attachment C
CALIFORNIA LABOR CODE COMPLIANCE
Contractor acknowledges that this contract is subject to the provisions of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works and the awarding public agency ("Pioneer"), and agrees to be bound by all the provisions thereof as though set forth in full herein.
This is a public work and requires the payment of prevailing wages for the work or craft in which the worker is employed for any public work done under the contract by Contractor or by any subcontractor pursuant to Section 1771 of the Labor Code.
Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the Pioneer has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this contract from the Director of the Department of Industrial Relations. These rates may be obtained at
http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm.
Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of Sections 1775, 1776, 1777.5, 1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor shall forfeit to the Pioneer, as a penalty, not more than $200.00 for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by him or by any subcontractor under him, in violation of the provisions of this Agreement.
3. In accordance with Labor Code Sections 1725.5 and 1771.1, and except for projects involving construction, alteration, demolition, installation, or repair work of $25,000 or less, or maintenance work of $15,000 or less, no contractor or subcontractor shall be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any public work contract unless currently registered and qualified to perform public work pursuant to Section 1725.5 [with limited exceptions for bid purposes, only, pursuant to Labor Code Section 1771.1 (a)].
4. Pursuant to Labor Code Section 1776, Contractor shall maintain and make available an accurate record showing the name of each worker and hours worked each day and each week by each worker employed by Contractor performing services covered by this Agreement. Contractor and its subcontractors shall furnish electronic certified payroll records to the Labor Commissioner in accordance with Labor Code Section 1771.4. The project is subject to compliance
monitoring and enforcement by the Department of Industrial Relations. The Contractor is responsible for compliance with Section 1776 by itself and all of its subcontractors. The Contractor shall post job site notices, as prescribed by regulation.
5. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. The Contractor shall be responsible for compliance with these Sections for all apprenticeable occupations.
Before commencing Work on this Project, the Contractor shall provide Pioneer with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) Days after concluding Work, Contractor and each of its Subcontractors shall submit to Pioneer a verified statement of the journeyman and apprentice hours performed under this Contract.
6. Contractor agrees to comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to Pioneer, forfeit twenty-five dollars ($25) for each worker employed in the execution of the contract by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Divi-sion 2, Part 7, Chapter 1, Article 3 of the California Labor Code.
7. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Contractor hereby certifies as follows:
"I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract." Date _____________ _ Signature _____________ _
Attachment D
PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:
Bond No. -----
WHEREAS the Pioneer Community Energy ("Pioneer"), State of California, has awarded to
_____________________________ ("Principal")
(Name and address of Contractor)
a contract (the "Contract") for the Work described as follows:
(Project name)
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with Pioneer to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.
NOW, THEREFORE, we, the undersigned Principal, and _____________ _ (Name and address of Surety)
("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto Pioneer and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of
Dollars ($ _____________ ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys' fees, incurred by Pioneer in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.
It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 ( commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond.
Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal
and its subcontractors pursuant to Labor Code Section 17 41, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or the Specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration, or addition.
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Dated:
"Principal"
By: ---------------
Its
By: ------------
Its
(Seal)
"Surety"
By:
Its
By:
Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DA TE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located .
Attachment E
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:
Bond No. ___ _
WHEREAS the Pioneer Community Energy ("Pioneer"), has awarded to _______ _ _____________________________ ("Principal")
(Name and address of Contractor)
a contract (the "Contract") for the Work described as follows:
(Project name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.
NOW, THEREFORE, we, the undersigned Principal, and _____________ _ (Name and address of Surety)
("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto Pioneer in the penal sum of ___________ _ Dollars($ __________________ ), this amount being not less than the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal's part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless Pioneer, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys' fees, incurred by Pioneer in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. Pioneer is the principal beneficiary of this Bond and has all rights of a party hereto.
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Dated:
"Principal"
By:
Its
By: ------------
Its
(Seal)
"Surety"
By: ------------
Its
By: --------- ---
Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DA TE OF BOND MUST NOT BE BEFORE DA TE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.
'IONEER
COMMUNtrY ENEllGY
Staff Report - Item 2
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 2: Receive Financial Audit Report from Pisenti & Brinker, LLP Date: 12/15/2022
RECOMMENDATION
Receive the Year-End Financial Statements and the Independent Auditor's Report for the Fiscal Year 2021-22.
AUDIT COMMITTEE
At the December 8, 2022, meeting of the Audit Committee, committee members received a presentation from the Independent Auditor and discussed the status of the audit and the auditor's opinion.
BACKGROUND
The annual audit of the financial statements has been completed and the report prepared by Pisenti & Brinker, LLP has been issued to the Agency. The auditors have rendered a clean opinion and "found the financial statements referred to above present fairly, in all material respects, the financial position of Pioneer as of June 30, 2022 and the changes in financial position and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America." The Statements described below are for the entirety of Pioneer and include both the Community Choice Aggregation and mPOWER program components.
Basic Financial Statements
The Statement of Net Position presents information about assets and liabilities and the difference between the two are reported as net position. The change in net position over time is an indicator of whether the financial position of Pioneer is improving or deteriorating.
The Statement of Revenues, Expenses and Changes in Net Position reports how the net position changed during the year and presents a comparison between operating and non-operating revenues and operating and non-operating expenses.
The Statement of Cash Flows reports the cash provided and used by operating activities, as well as other sources and uses, such as financing and investing activities.
Notes to the Financial Statements
Various notes provide additional information that is essential to a full understanding of the information provided in the basic financial statements. They are found immediately following the financial statements to which they refer.
ANALYSIS & DISCUSSION
The following are highlights of the financial statement as of June 30, 2022 :
Agenda Item: 2 Agenda Date: 12/15/2022
► Total assets were $71 million with current assets comprised of $63.9 million . Current assets are mostly comprised of cash and cash equivalents of $13.8 million; investments (LAIF) of $14.8 mill ion ; accounts receivable of $17.5 million, and accrued revenue of $9.5 mill ion. Current assets have increased each year since Pioneer's launch as a resu lt of operating surpluses. ► Total liabilities were $34.6 million of which current liabilities totaled $17.2 million. Current liabilities primarily consist of cost of electricity that has been delivered to customers, but not yet paid to Pioneer. Other liabilities include interest and bond payable. Noncurrent liabilities include Bonds and Notes Payable due in more than a year.
► Total operating revenues were $116.9 million which is almost exclusively generated from electricity sales.
► Total operating expenses were $103 .7 million which was primarily the cost of electricity $96.4 million, contract services $4.4 million, and staffing cost of $2.3 mill ion.
FISCAL IMPACT
During Fiscal Year 2021-22, Pioneer's total revenues exceeded total expenses which resulted in the Net Position of increase of $12.4 mi ll ion to total Net Position of $36.47 million.
ATTACHMENTS
1. Audited Financials for the fiscal year ended June 30, 2022
.. : -~-;- ·. · .. .
. ·.
COMMUNITY ENERGY
Financial Statements
Fiscal Years Ended June 30, 2022 and 2021
with Report of
Independent Auditors
TABLE OF CONTENTS
Independent Auditor's Report . . . .. . . .. . .. .. .. .. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. .. . .. ...... 1 Management's Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 4 Basic Financial Statements:
Statements of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Statements of Revenues, Expenses and Changes in Net Position.................... 12 Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Notes to the Basic Financial Statements 15
Supplementary Information:
Combining Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Schedule of Expenditures of Federal Awards...................................... 33 Notes to Schedule of Expenditures of Federal Awards........................... 34 Compliance:
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards............................... 35 Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance................................................................... 37 Schedule of Findings and Questioned Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 40 Schedule of Prior Audit Findings . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . ... 42 Independent Auditor's Report
To the Board of Directors
Pioneer Community Energy
Rocklin, California
Report on the Audits of the Financial Statements
Opinion
3562 Round Barn Circle, Suite 200
Santa Rosa, CA 95403
(707) 542-3343 Office
(707) 527-5608 Fax
pbllp.com
We have audited the accompanying financial statements of Pioneer Community Energy (PCE), as of and for the years ended June 30, 2022 and 2021, and the related notes to the financial statements, which collectively comprise PCE's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of PCE as of June 30, 2022 and 2021 , and the changes in financial position and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GA.AS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audits of the Financial Statements section of our report. We are required to be independent of PCE and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about PCE's ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
SANTA ROSA PETALUMA
RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International. a qlobal network of independent audit, tax, and consultinq firms. Members of RSM US Alliance have access to RSM Independent Auditor's Report ( continued)
Auditor's Responsibilities for the Audits of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's repo1t that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the ove1Tide of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audits. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audits in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of PCE's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about PCE's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.
Independent Auditor's Report ( continued)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management's discussion and analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audits were conducted for the purpose of forming an opm1on on the financial statements that collectively comprise PCE's basic financial statements. The schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Unform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the related notes to the schedule of expenditures of federal awards, and combining financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audits of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards and combining financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our repo1t dated December 9, 2022, on our consideration of PCE's internal control over financial reporting and our tests of its compliance with ce1tain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to solely describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of PCE's internal control over financial reporting or on compliance. That report is an integral part of an audit perfonned in accordance with Government Auditing Standards in considering PCE's internal control over financial reporting and compliance.
Santa Rosa, California
December 9, 2022
PIONEER COMMUNITY ENERGY
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2022 AND 2021
The Management's Discussion and Analysis provides an overview of Pioneer Community Energy's (Pioneer) financial activities as of and for the years ended June 30, 2022 and 2021. The information presented here should be considered in conjunction with the audited financial statements.
BACKGROUND
The formation of Pioneer was made possible in 2002 by the passage of California Assembly Bill 117, enabling communities to purchase power on behalf of their residents and businesses and creating competition in power generation.
Pioneer was created as a California Joint Powers Authority (JPA) in August 2015 . Pioneer was established to provide electric power at competitive cost as well as to provide other benefits within Placer County, including reducing greenhouse gas emissions related to the use of power, procuring energy with a priority on stimulating local job creation through various programs and development, promoting long-term electric rate stability and energy reliability for residents and business, the use and development of local renewable resources, as well as promoting personal and community ownership of renewable resources.
Pioneer served eight jurisdictions through 2022, including the cities and towns of Auburn, Colfax, Loomis, Lincoln, Placerville and Rocklin and the unincorporated areas of El Dorado and Placer Counties. Governed by a Board of Directors (Board) consisting of elected representatives from each jurisdiction, Pioneer is responsible for the acquisition of electric power for its service area.
Pioneer has the rights and powers to set rates for the services it furnishes, incur indebtedness, and issue bonds or other obligations.
4 PIONEER COMMUNITY ENERGY
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2022 AND 2021
Financial Reporting
Pioneer presents its financial statements as an enterprise fund under the economic resources measurement focus and the accrual basis of accounting, in accordance with generally accepted accounting principles (GAAP) for proprietary funds, as prescribed by the Governmental Accounting Standards Board (GASB).
Contents of this report
This report is divided into the following sections:
• Management's Discussion and Analysis.
• The basic financial statements:
o The Statements of Net Position include all of Pioneer's assets, liabilities, and net position and provide information about the nature and amount of resources and obligations at a specific point in time.
o The Statements of Revenues, Expenses and Changes in Net Position report all of Pioneer's revenues and expenses for the years shown.
o The Statements of Cash Flows report the cash provided and used by operating activities, as well as other sources and uses, such as debt financing. o The Notes to the Basic Financial Statements, which provide additional details and information related to the basic financial statements.
5 PIONEER COMMUNITY ENERGY
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2022 AND 2021
FINANCIAL HIGHLIGHTS
The following table is a summary of Pioneer's assets, liabilities, and net position and a discussion of significant changes as of June 30:
Assets
C un-ent assets
NoncwTent assets
Total assets
Liabilities
Current liabilities
N oncurrent liabilities
Total liabilities
Net position
Unrestricted
Total net position
Current assets
2022
$ 63,926,086
7,127,240
71 ,053,326
17,195,547
17,392,289
34,587,836
36,465,490
$ 36,465,490
2021
$ 43,877,431
10,399,115
54,276,546
9,250,662
20,924,501
30,175,163
24,101 ,383
$ 24,101,383
2020
$ 39,738,154
13,125,403
52,863,557
8,983,213
21 ,869,904
30,853,117
22,010,440
$ 22,010,440
Fiscal year 2022 current assets were mostly comprised of cash and cash equivalents of $13.8 million, investments of $14.8 million, accounts receivable of $17.5 million, accrued revenue of $9.5 million, and prepaid expenses and deposits of $8.0 million. Included in current assets are deposit postings with the California Public Utilities Commission (CPUC), and deposits held by energy suppliers as collateral on energy purchase transactions. Current assets increased each year as a result of operating surpluses driven by the expansion into the City of Placerville and unincorporated El Dorado County that began in January 2022.
Noncurrent assets
Fiscal year 2022 other noncurrent assets consist of the long-term portion of the outstanding principal balance on Property Assessed Clean Energy (PACE) program loans. The balance has been declining as loans continue to be paid down. Also included is a lease asset that was recorded in accordance with Governmental Accounting Standards Board No. 87 - Leases (GASB 87) that was implemented during 2022, with a restatement back to 2021. According to GASB, the Statement aims to increase the usefulness of governments' financial statements by requiring reporting of ce1tain lease liabilities that previously were not reported. 6 Current liabilities
PIONEER COMMUNITY ENERGY
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2022 AND 2021
Fiscal year 2022 current liabilities consist mostly of the cost of electricity delivered to customers that is not yet due to be paid by Pioneer. The accrued cost of electricity totaled $15.4 million.
Other components of current liabilities include accounts payable for services, the current portion of bonds and note payable, taxes and surcharges due to other governments and other accrued liabilities. The increase in current liabilities from 2021 to 2022 is a result of the increased costs associated with the expansion into the City of Placerville and unincorporated El Dorado County that began in 2022.
Noncurrent liabilities
Noncurrent liabilities include the portion of bonds and note payable principal due to be paid after one year. The decrease in bonds payable is the result of the accelerated debt service repayment on the Community Choice Aggregation (CCA) Fund's outstanding Series 2017 Revenue Bond and the accelerated payoff of mPOWER bonds by property owners during 2022. The decrease in the note payable was the result of scheduled debt payments made during the year.
Operating results
The following table is a summary of Pioneer's results of operations and a discussion of significant changes for the years ended June 30:
2022 2021 2020
Operating revenues $ 115,635,810 $ 82,597,443 $ 80,507,683 Grant revenue 1,396,552
Investment gains (losses) (142,111) (69,041) 495,233
Total income 116,890,251 82,528,402 81,002,916
Operating expenses 103,735,929 79,688,391 68,398,999
Interest and financing expense 790,215 749,068 840,686
Total expenses 104,526,144 80,437,459 69,239,685
Change in net position $ 12,364,107 $ 2,090,943 $ 11,763,231 Operating revenues and investment income
Pioneer's main operating revenues are derived from the sale of electricity to commercial and residential customers throughout its territory. Operating revenues increased from 2020 to 2021 mainly as the result of rate changes. Operating revenues increased from 2021 to 2022 due to the new customers added from the expansion into the City of Placerville and unincorporated El Dorado County.
7 PIONEER COMMUNITY ENERGY
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2022 AND 2021
Grant revenue and investment gains (losses)
Pioneer received a grant in 2022 under the California Arrearage Payment Program (CAPP) to provide relief to customers with past-due accounts arising during the COVID-19 pandemic (Note 6). Investment losses were recognized in 2021 and 2022 due to market value changes for investments held.
Operating expenses
Pioneer's largest expense each year was the purchase of electricity delivered to retail customers.
Pioneer procures energy from a variety of sources and focuses on maintaining a balanced power portfolio at competitive costs. Operating expenses increased significantly in 2021 primarily due to rising costs in the energy market. The 2022 increase was due to the cost of additional electricity purchased as a result of adding the City of Placerville and unincorporated area of El Dorado County to Pioneer's territory.
ECONOMIC OUTLOOK
Pioneer serves approximately 87% of all eligible customers in Placer County and this has remained relatively stable over the years. Pioneer began service to unincorporated El Dorado County and the City of Placerville in January 2022. Although many of the expansion customers began coverage in early 2022, the final service transition will continue throughout the calendar year, especially for solar customers, with the last transition scheduled for November 2022. Once the transition is complete, Pioneer expects to be servicing 82% of the expansion territory and 85% over the entire service territory. Pioneer staff have and will continue to actively communicate through multiple media channels and in-person meetings informing residents and business that choosing Pioneer means lower and stable rates.
Pioneer's mission is to provide competitive electric rates, reliable service, and a choice in energy options. Since launching in February 2018, actual and projected customer electricity savings through December 2022 are estimated to be $40.3 million compared to Pacific Gas & Electric ("PG&E"). Pioneer's customers pay 6%-10% less than PG&E. PG&E has indicated (not finalized) that the Power Charge Indifference Adjustment (PCIA) (i.e., exit fee) that is charged to Pioneer customers will be lower than the current PCIA which would result in an increased Pioneer discount, reinforcing Pioneer's rate competitiveness advantage when compared to PG&E.
Pending CPUC approval, Pioneer's expansion efforts will result in the addition of the municipalities of Grass Valley and Nevada City in January 2024. That expansion is expected to increase Pioneer's load by another 6%. This future expansion builds on the recent expansion to unincorporated El Dorado County and the City of Placerville. These service territory expansions provide economies of scale and the opportunity to acquire lower cost power supply and attract more creditworthy counterparties. Pioneer will continue to evaluate appropriate opportunities for expansion of its service territory to benefit both current and future customers. 8 PIONEER COMMUNITY ENERGY
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2022 AND 2021
ECONOMIC OUTLOOK (continued)
During March 2020, the World Health Organization declared COVID-19 a pandemic. In response to the pandemic, California created CAPP that delivered Pioneer customer bill relief of approximately $1.4 million in fiscal year 2022. A second CAPP was approved in California's fiscal year 2022-23 budget that will assist certain residential customers with utility bill relief for the period of March 2020 to December 2021. Pioneer is participating in that program and when funding is distributed in January 2023, Pioneer is estimating that its eligible customers may receive relief benefit of almost $1.1 million.
Pioneer procures energy consistent with its Board-approved Energy Risk Management Policy that aligns customer demand for clean energy with short and long-term purchases of clean energy resources. California's Renewable Portfolio Standard ("RPS") requires load-serving entities ("LSEs"), such as Pioneer, to supply their retail sales with minimum quantities of eligible renewable energy both on an annual basis and through long-term commitments greater than ten years. The State has also directed LSEs to procure 60% of their portfolios from RPS-eligible resources by 2030 and 100% of their retails sales from greenhouse gas ("GHG") free and/or other eligible renewable resources by 2045. Pioneer's standard product offering complies with the state laws for renewable and GHG-free energy. Pioneer also offers a "Greenl00" product that consists of 100% renewable energy. Pioneer also procures electric capacity or Resource Adequacy ("RA"), a state program jointly administered by the California Public Utilities Commission (CPUC"), the California Energy Commission ("CEC"), and the California Independent System Operator ("CAISO"). The RA resources support grid reliability by ensuring there will be enough supply in the right locations and with sufficient ramping capability to meet load in the CAISO market.
Pioneer has been highly successful on the legislative front. In line with its Integrated Resource Plan, Pioneer puts a high priority on procuring biomass energy due to the abundance of biomass in the region and the resulting benefits of local investment, job creation, reduction of wildfire risk, and serving as a baseload renewable energy resource that provides grid resiliency in an otherwise intermittent renewable energy space. Due to the higher cost of biomass energy, Pioneer co-sponsored AB 843 in 2021 that provided CCAs access to an existing biomass subsidized program (BioMA T) that only the investor-owned utilities had access to. The passage of AB 843 on a unammous, bipartisan basis provides Pioneer the ability to procure biomass energy at a competitive price, delivering on its mission to provide low-cost renewable energy for its customers.
The Pioneer Board has approved proceeding with a 30-year prepay bond transaction that bundles the renewable power purchase agreements as a long-term financial transaction. These types of transactions are available for municipal utilities and tax-exempt entities such as Pioneer that enables a meaningful power procurement cost savings opportunity. This prepay structure has historically been utilized for natural gas procurement but has recently been expanded to include renewable energy. The transaction will provide Pioneer with an 8%-10% discount for its existing long-term renewable power purchase agreements. This is a financing tool that is not available to Pioneer's competitor and will contribute to continued rate stability and rate competitiveness. 9 PIONEER COMMUNITY ENERGY
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2022 AND 2021
ECONOMIC OUTLOOK (continued)
Pioneer has a strong focus on continuing to build credit capacity through increased cash reserves and entering favorable energy purchase commitments. Pioneer's rate adjustment in March 2022 provided a lower cost to customers compared to PG&E and also provided Pioneer the opportunity to strengthen its reserves. The Board has adopted an increased reserve target of 160 days of liquidity and is anticipated to reach that target during fiscal year 2023/24. The progress towards the reserve target will open the door to timely credit rating discussions with a national rating agency. Management intends to continue its conservative use of financial resources and expects ongoing operating surpluses that will build the reserves.
REQUEST FOR INFORMATION
This financial report is designed to provide Pioneer's customers and creditors with a general overview of the organization's finances and to demonstrate Pioneer's accountability for the funds under its stewardship.
Please address any questions about this report or requests for additional financial information to 2510 Warren Dr., Suite B, Rocklin, CA 95677.
Respectfully submitted,
Donald Eckert Jr, Executive Director
10 BASIC FINANCIAL STATEMENTS
PIONEER COMMUNITY ENERGY
STATEMENTS OF NET POSITION
JUNE 30, 2022 AND 2021
ASSETS
Current assets
Cash and cash equivalents
Investments
Accounts receivable, net of allowance
Accrued revenue
Interest receivable
Contractual assessments receivable
Other receivables
Prepaid expenses
Deposits
Total current assets
N oncurrent assets
Contractual assessments receivable
Deposits
Lease asset, net of amortization
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities
Accrued cost of electricity
Accounts payable
Other accrued liabilities
Interest payable
Supplier security deposits
Energy surcharges due to other governments
Bonds payable
Note payable
Lease liability
. Total current liabilities
N oncurrent liabilities
Bonds payable
Note payable
Lease liability
Total noncurrent liabilities
Total liabilities
$
2022
13,762,144
14,830,290
17,465,041
9,527,730
105,318
244,636
2,056,036
5,934,891
63,926,086
5,560,981
1,566,259
7,127,240
71,053,326
15,357,098
390,414
387,565
119,595
21,857
102,711
208,542
549,991
57,774
17,195,547
6,368,628
9,382,007
1,641,654
17,392,289
34,587,836
NET POSITION
Unrestricted net position
Total net position
36,465,490
$ 36,465,490
The accompanying notes are an integral part of these financial statements. 2021
$ 28,272,909
8,512,333
3,869,044
102,687
295,433
301,254
475,586
2,048,185
43,877,431
7,392,263
1,324,574
1,682,278
10,399,115
54,276,546
7,425,535
345,048
168,059
136,992
159,750
161,498
272,420
529,251
52,109
9,250,662
9,298,640
9,926,433
1,699,428
20,924,501
30,175,163
24,101,383
$ 24,101,383
11 PIONEER COMMUNITY ENERGY
STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
YEARS ENDED JUNE 30, 2022 AND 2021
2022 2021
OPERATING REVENUES
Electricity sales, net $ 114,994,421 $ 81 ,929,623
Service charges 641 ,389 667,820
Total operating revenues 115,635,810 82,597,443
OPERATING EXPENSES
Cost of electricity 96,395,324 73,862,156
Contract services 4,429,183 3,728,854
Staff compensation 2,338,563 1,702,419
General and administration 572,859 394,962
Total operating expenses 103,735,929 79,688,391
Operating income 11 ,899,881 2,909,052
NONOPERATING REVENUES (EXPENSES)
Grant revenue 1,396,552
Investment gains (losses) (142,1 11) (69,041)
Interest and financing expense (790,215) (749,068)
N onoperating revenues (expenses), net 464,226 (8 18,109) CHANGE IN NET POSITION 12,364,107 2,090,943
Net position at beginning of year (as restated - Note 11) 24,101 ,383 22,010,440 Net position at end of year $ 36,465 ,490 $ 24,1 01 ,383 12 The accompanying notes are an integral part of these financial statements.
PIONEER COMMUNITY ENERGY
STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2022 AND 2021
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 100,771,369
Other operating receipts 151,935
Contractual assessments received, net 2,523,468
Payments to suppliers for electricity (92,485,640)
Payments for goods and services (4,783,162)
Payments for staff compensation (2,285,829)
Payments of taxes and surcharges to other governments (447,129) Net cash provided by operating activities 3,445,012
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Note payable proceeds
Bond proceeds 1,013,989
Grant revenue received 1,396,552
Principal paid on bonds and note (4,531,565)
Interest and related expense payments (740,959)
Net cash used by non-capital
financing activities (2,861,983)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments oflease liability (118,762)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income 24,968
Purchase of investments (15,000,000)
Net cash used by investing activities (14,975,032)
Net change in cash and cash equivalents (14,510,765)
Cash and cash equivalents at beginning of year 28,272,909 Cash and cash equivalents at end of year $ 13,762,144
The accompanying notes are an integral part of these financial statements. 2021
$ 83,578,688
820,908
2,757,926
(75,277,415)
(3,872,171)
(1,622,032)
(262,321)
6,123,583
10,500,000
1,672,871
(14,559,723)
(722,906)
(3,109,758)
(116,023)
(13,295)
(13,295)
2,884,507
25,388,402
$ 28,272,909
13 PIONEER COMMUNITY ENERGY
STATEMENTS OF CASH FLOWS (CONTINUED)
YEARS ENDED JUNE 30, 2022 AND 2021
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
2022
Operating income $ 11,899,881
Adjustments to reconcile operating income to net
cash provided by operating activities
Revenue adjusted for allowance for uncollectible accounts 217,046 (Increase) decrease in:
Accounts receivable (9,169,754)
Accrued revenue (5,658,686)
Other receivables 301,254
Prepaid expenses (1,580,450)
Deposits (2,562,132)
Contractual assessments receivable 1,882,079
Increase (decrease) in:
Accrued cost of electricity 7,931,563
Accounts payable 45,366
Other accrued liabilities 175,775
Energy surcharges due to other governments (58,787)
Supplier security deposits 21,857
Net cash provided by operating activities $ 3,445,012
The accompanying notes are an integral part of these financial statements. 2021
$ 2,909,052
1,507,096
(1,266,772)
1,054,189
(301,254)
(310,039)
(343,099)
2,757,600
(475,905)
159,668
202,369
92,228
138,450
$ 6,123,583
14 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
1. REPORTING ENTITY
Pioneer Community Energy (Pioneer) is a California joint powers authority created in August of 2015. As of June 30, 2022, parties to its Joint Powers Agreement consist of the following local governments:
Counties
El Dorado
Placer
Auburn
Colfax
Loomis
Cities and Towns
Lincoln
Placerville
Rocklin
Pioneer is separate from and derives no financial support from its members. Pioneer is governed by a Board of Directors whose membership is composed of elected officials representing the member governments.
A core function of Pioneer is to provide electric service that includes providing electric energy at competitive rates and it operates as a Community Choice Aggregation (CCA) subject to California Public Utilities Code Section 366.2.
Pioneer operates two programs, the CCA Program and the mPOWER Program.
CCA Program - Pioneer began providing electric generation services to its customers in February of 2018 and began providing services to the unincorporated area of El Dorado County and the City of Placerville in January 2022. Pioneer supplies electric energy to retail customers through its CCA Program. Pioneer participates in the wholesale energy market to acquire its energy and related products (resource adequacy and renewable energy) from a variety of wholesale energy suppliers. Pioneer's energy is delivered through existing physical infrastructure and equipment owned and operated by the incumbent utility.
mPOWER Program - The mPOWER Program provides assessment financing to property owners for the installation of energy efficiency, water conservation and distributed generation improvements. The mPOWER Program is supported from revenues derived from assessments attached to and collected on participating property owners' property tax bills. Pioneer stopped accepting new applications for the mPOWER program after August 31, 2021. 15 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
Pioneer's financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements.
Pioneer's operations are accounted for as a governmental enterprise fund and are reported using the economic resources measurement focus and the accrual basis of accounting - similar to business enterprises. Accordingly, revenues are recognized when they are earned, and expenses are recognized at the time liabilities are incurred. Enterprise fund-type operating statements present increases (revenues) and decreases (expenses) in total net position.
When both restricted and unrestricted resources are available for use, it is Pioneer's policy to use restricted resources first, and then unrestricted resources as they are needed.
CASH AND CASH EQUIVALENTS
For the purpose of the Statements of Cash Flows, Pioneer defines cash and cash equivalents to include cash on hand, demand deposits, and short-term investments with an original maturity of three months or less. The Statements of Net Position present restricted cash balances separately.
Restricted cash reported on the Statements of Net Position includes certain deposits held by energy suppliers and assessment receipts pertaining to the mPOWER program that are pledged to service debt.
PREPAID EXPENSES AND DEPOSITS
Contracts to purchase energy may require Pioneer to provide the supplier with advanced payments or security deposits. Deposits are generally held for the term of the contract and are classified as current or noncurrent assets depending on the length of time the deposits will be outstanding.
Also included are prepaid expenses and deposits for regulatory and other operating purposes.
NET POSITION
Net position is presented in the following components:
Restricted: This component of net position consists of constraints placed on net asset use primarily imposed by creditors (such as through debt or credit covenants), grantors, contributors, or laws or regulations of other governments, or constraints imposed by law through constitutional provisions or enabling legislation. Pioneer did not have any restricted net position as of June 30, 2022 or 2021.
Unrestricted: This component of net position consists of net position that does not meet the definition of "restricted."
16 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
OPERATING AND NON-OPERATING REVENUES
Operating revenues include revenue from the sale of electricity to customers for the CCA Program, and assessments and fees for the mPOWER program.
Investment income is considered non-operating revenue.
REVENUE RECOGNITION
Pioneer recognizes revenue on the accrual basis. This includes invoices issued to customers during the reporting period and electricity estimated to have been delivered but not yet billed.
Management estimates that a portion of the billed amounts will be uncollectible. Accordingly, an allowance for uncollectible accounts has been recorded.
OPERATING AND NONOPERATING EXPENSES
Operating expenses include the costs of electricity and services, and administrative expenses.
Expenses not meeting this definition are reported as nonoperating expenses.
ELECTRIC POWER PURCHASED
During the normal course of business, Pioneer purchases electric power from numerous suppliers.
Electricity costs include the cost of electricity and capacity arising from bilateral contracts with energy suppliers as well as generation credits, and load and other charges arising from Pioneer's participation in the California Independent System Operator's (CAISO) centralized market. The cost of electricity and capacity is recognized as "Cost of Electricity" in the Statements of Revenues, Expenses and Changes in Net Position.
To comply with the State of California's Renewable Portfolio Standards (RPS) and self-imposed benchmarks, Pioneer acquires RPS eligible renewable energy evidenced by Renewable Energy Certificates (Certificates) recognized by the Western Renewable Energy Generation Information System (WREGIS). Pioneer obtains Certificates with the intent to retire them and does not sell or build surpluses of Certificates with a profit motive. Pioneer recognizes an expense on a monthly basis that corresponds to the volume of electricity sold to its customers. This expense recognition increases accrued cost of electricity reported on the Statements of Net Position. Payments made to suppliers reduce the accrued cost of electricity.
Pioneer purchases capacity commitments from qualifying generators to comply with the California Public Utilities Commission's Resource Adequacy Program. The goals of the Resource Adequacy Program are to provide sufficient resources to CAI SO to ensure the safe and reliable operation of the grid in real-time and to provide appropriate incentives for the siting and construction of new resources needed for reliability in the future. 17 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
SECURITY DEPOSITS FROM ENERGY SUPPLIERS
Various contracts entered into by Pioneer require the supplier to provide Pioneer with a security deposit. These deposits are generally held for the term of the contract or until the completion of certain benchmarks. Deposits are classified as current or noncurrent liabilities, depending on the length of the time the deposits will be held.
STAFFING COSTS
Pioneer pays employees bi-weekly and fully pays its obligation for health benefits and contributions to its defined contribution retirement plan each month. Pioneer is not obligated to provide post-employment healthcare or other post-employment benefits (OPEB), and, accordingly, no related liability is recorded in these financial statements. Pioneer provides compensated time off, and the related liability is recorded in these financial statements.
INCOME TAXES
Pioneer is a joint powers authority under the provision of the California Government Code and is not subject to federal or state income or franchise taxes.
ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
RECLASSIFICATIONS
Certain amounts in the prior-year financial statements have been reclassified for comparative purposes to conform to the presentation of the current-year financial statements. These reclassifications did not result in any change in previously reported net position or change in net position.
18 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
3. CASH, CASH EQUIVALENTS, AND INVESTMENTS
Prior to April 2021, the Placer County Treasurer served as Pioneer's Treasurer. As such, Pioneer was required to maintain its cash and investments in the Placer County Treasury. Additionally, Pioneer's Series 2017 Revenue Bond held by the Placer County Treasurer's Pool (the County Pool) requires Pioneer to maintain its cash balances in the Placer County Treasury as long as the bonds are outstanding. During the year ended June 30, 2021, Pioneer repaid the 2017 Revenue Bond and appointed a new treasurer. Pioneer moved its cash and cash equivalents related to its CCA program to a private bank. Pioneer's cash and investments related to its mPower program remain in the Placer County Treasury. During the year ended June 30, 2022, Pioneer purchased an investment in the California Local Agency Investment Fund (LAIF).
Revenue earned in the County Pool and LAIF are allocated quarterly to the participating funds using the daily cash balance of each fund. The County Pool is included in the financial statements as "cash and cash equivalents", along with cash in private banks. LAIF is displayed in the financial statements as " investments." Participants in the County Pool and LAIF include voluntary and involuntary participants. Pioneer is a voluntary participant. The County Pool and LAIF are not registered with the Securities and Exchange Commission as an investment company.
The County has established a treasury oversight committee to monitor and review the management of public funds maintained in the County Pool in accordance with Article 6 Section 27131 of the California Government Code. The oversight committee and the Board of Supervisors review and approve the investment policy annually. The California Local Investment Advisory Board (LIAB) has oversight responsibility for LAIF. LIAB consists of five members as designated by State Stature.
GASB Statement No. 40, Deposit and Investment Risk Disclosures - an amendment of GASB Statement No. 3, requires additional disclosures about a government's deposit and investment risks that include credit risk, custodial credit risk, concentration of credit risk and interest rate risk. Pioneer's deposits with the County Treasury are subject to the risk policies contained in the County Treasurer's Investment Policy.
Placer County's comprehensive annual financial report, containing information relating to the Pool's cash and investments fair value hierarchy, can be obtained from the County Auditor-Controller's office. LAIF information can be obtained from the California State Treasurer.
INTEREST RA TE RISK
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity its fair value is to changes in market interest rates. The weighted average maturity of the County Pool as of June 30, 2022 and 2021 was 536 days and 643 days, respectively. For LAIF, approximately 68% of the securities had maturities of one year or less. Of the remainder, less than 0.5% percent had maturity of more than five years.
19 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
3. CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
FAIR VALUE MEASUREMENT
Pioneer categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. As of June 30, 2022, Pioneer held no individual investments. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. Pioneer's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.
Pioneer' proportionate share of investments in the County Pool at fair value on June 30, 2022 and 2021 was $1,124,649 and $2,323,584, respectively. Pioneer' proportionate share of investments in LAIF at fair value on June 30, 2022 and 2021 was $14,830,290 and $0, respectively. The investments are not required to be categorized under the fair value hierarchy.
CREDIT RISK
State law limits investments in various securities to a certain level of risk ratings issued by nationally recognized statistical rating organization. It is Pioneer's policy to comply with State law regarding security rating. The County Pool and LAIF have not been credit rated.
CUSTODIAL CREDIT RISK
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository institution, a depositor will not be able to recover deposits or will not be able to recover collateral securities that are in possession of an outside party. The custodial credit risk for investments is the risk that, in the event of failure of the counterparty (i.e., broker-dealer) to a transaction, the investor will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Treasurer's Investment Policy contain the following provision for deposits: the California Government Code requires that a financial institution secure deposits made by state and local governmental units by pledging securities an undivided collateral pool held by a depository regulated under state law. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
20 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
3. CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
BALANCES
Cash and cash equivalents were as follows as of June 30:
Cash in banks
Cash with CoW1ty Pool
Total
2022
$12,637,495
1,124,649
$13,762,144
2021
$25,949,325
2,323,584
$28,272,909
21 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
4. ACCOUNTS RECEIVABLE
Accounts receivable were as follows as of June 30:
Accounts receivable from customers
Allowance for uncollectible accounts
Net accounts receivable
2022
$20,056,061
(2,591 ,020)
$17,465,041
2021
$ 10,886,307
(2,373,974)
$ 8,512,333
The maJonty of account collections occur within the first few months following customer invoicing. Pioneer estimates that a portion of the billed accounts will not be collected. Pioneer continues collection efforts on accounts in excess of de minimis balances regardless of the age of the account. Although collection success generally decreases with the age of the receivable, Pioneer continues to have success in collecting older accounts. The allowance for uncollectible accounts at the end of a period includes amounts billed during the current and prior fiscal years.
During the year ended June 30, 2022, Pioneer recorded accounts receivable write-offs and additions to its allowance for uncollectible accounts for a net increase in the allowance of $217,000. During the year ended June 30, 2022, Pioneer received payments from the California Arrearage Payment Program (CAPP) that helped offset a portion of accounts receivable.
5. DEBT
BONDS PAY ABLE
mPOWER PROGRAM REVENUE BONDS
On January 26, 2017, the Pioneer Board authorized the issuance of revenue bonds to provide the capital necessary for financing residential property energy efficiency improvements in the amount of $25 million, and in the amount of $25 million for non-residential property improvements for the mPower program. Pioneer uses the designation "R" in its bond series naming system to signify bonds financing residential improvements and "NR" to signify bonds financing non-residential improvements. Revenue bonds issued prior to July I, 2021 are listed below.
During the fiscal year ended June 30, 2022, Pioneer issued revenue bonds Series R 2021-22 in the amount of $1.0 million. All mPOWER Program series bonds are classified as direct borrowings and are payable solely from assessments and fees from participating property owners. 22 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
5. DEBT (Continued)
The following is a summary of Pioneer's bonds outstanding at June 30, 2022:
0 utstanding
Interest Issuance Balance June
Maturity Rates Amount 30, 2022
Type of indebtedness
Revenue bonds
(mPOWER Program)
Series R 2016-17 9/2/2037 3.00% $ 492,589 $ 69,438
Series R 2017-18 9/2/2038 3.00% 5,380,276 1,746,262
Series NR 2017-18 9/2/2038 3.00% 138,323 126,35 1
Series R2018-19 9/2/2039 4.50% 5,656,485 1,3 75,811
Series NR 2018-19 9/2/2039 4.50% 418,152 304,295
Series R2019-20 9/2/2040 4.50% 2,730,091 1,111,353
Series NR2019-20 9/2/2040 4.50% 544,507
Series R 2020-21 9/2/2041 4.50% 1,544,622 890,568
Series NR 2020-21 9/2/2031 4.50% 128,249
Series R 2021-22 9/2/2042 4.50% 1,013,989 953,092
Total (mPOWER Program) $ 18,047,283 6,577,170
Amounts due within one year 208,542
Amounts due after one year $ 6,368,628
23 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
5. DEBT (Continued)
NOTE PAYABLE
In May 2021, Pioneer borrowed $10,500,000 from Umpqua Bank at an interest rate of 3.85% per annum. The monthly payment of principal and interest is $76,880 and the loan matures on April 30, 2036. Pioneer has pledged net revenues to secure payment of the note.
The following is a summary of changes in bonds and note payable for the year ended June 30, 2022:
Balance July Principal Balance June Due Within
1, 2021 Additions Repayments 30,2022 One Year
Bond Title, Series Number
Series R 2016-17 (mPOWER) $ 190,701 $ $ (121,262) $ 69,439 $ 3,531 Series R 2017-18 (mPOWER) 2,396,687 (650,425) 1,746,262 69,838 Series NR 2017-18 (mPO WER) 130,576 (4,225) 126,351 4,479 Series R 2018-19 (mPOWER) 2,615,291 (1,239,480) 1,375,811 56,093 Series NR 2018-19 (mPO WER) 322,617 (18,322) 304,295 13,718 Series R 2019-20 (mPOWER) 2,183,975 (1,072,622) 1,111,353 33,897 Series NR2019-20 (mPOWER) 58,342 (58,342)
Series R 2020-21 (mPOWER) 1,544,622 (654,054) 890,568 26,986 Series NR 2020-21 (mPOWER) 128,249 (128,249)
Series R 2021-22 (mPOWER) 1,013,989 (60,897) 953,092
Total $ 9,571,060 $ 1,013,989 $ (4,007,879) $ 6,577,170 $208,542 Balance July Principal Balance June Due Within
1, 2021 Additions Repayments 30,2022 One Year
Note Payable
Umpqua Bank $10,455,684 $ $ (523,686) $ 9,931,998 $549,991 24 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
5. DEBT (Continued)
CHANGES IN BONDS AND NOTES PAYABLE
The following is a summary of changes in bonds and note payable for the year ended June 30, 2021:
Balance July Principal Balance June Due Within
1, 2020 Additions Repayments 30,2021 One Year
Bond Title, Series Number
2017 Revenue Bond
Series 2017 (CCA) $10,470,000 $ $(10,470,000) $ $
Series R2016-17 (mPOWER) 291,486 (100,785) 190,701 7,510 Series R2017-18 (mPOWER) 3,501,904 (1,105,217) 2,396,687 88,964 Series NR 2017- 18 (mPO WER) 134,562 (3,986) 130,576 4,225 Series R2018-19 (mPOWER) 4,364,009 (1,748,718) 2,615,291 91 ,731 Series NR2018-19 (mPOWER) 409,652 (87,035) 322,617 13,101 Series R2019-20 (mPOWER) 2,697,478 (513 ,503) 2,183,975 65,303 Series NR 2019-20 (mPO WER) 544,507 (486,165) 58,342 1,586 Series R 2020-21 (mPOWER) 1,544,622 1,544,622
Series NR 2020-21 (mPOWER) 128,249 128,249
Total $22,413,598 $ 1,672,871 $(14,515,409) $ 9,571,060 $272,420 Balance July Principal Balance June Due Within
1, 2020 Additions Repayments 30,2021 One Year
Note Payable
Umpqua Bank $ $10,500,000 $ (44,316) $10,455,684 $529,251 25 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
5. DEBT (Continued)
MINIMUM FUTURE OBLIGATIONS
Minimum future obligations for the outstanding mPOWER Program Revenue Bonds and the note payable are as follows:
mPOWER Program Revenue Bonds
Principal Interest Total
Years ended June 30,
2023 $ 208,542 $ 263,045 $ 471,587
2024 257,622 256,345 513,967
2025 270,193 245,602 515,795
2026 283,698 234,318 518,016
2027 300,720 222,419 523,139
2028-2032 1,739,204 909,642 2,648,846
2033-2037 2,004,494 524,532 2,529,026
2038-2042 1,462,027 133,087 1,595,114
2043 50,670 1,140 51,810
Total $ 6,577,170 $ 2,790,130 $ 9,367,300
Note Payable
Principal Interest Total
Years ended June 30,
2023 $ 549,991 $ 372,573 $ 922,564
2024 571,543 351,021 922,564
2025 593,940 328,624 922,564
2026 617,214 305,349 922,563
2027 641,401 281,163 922,564
2028-2032 3,604,308 1,008,512 4,612,820
2033-2037 3,353,601 264,216 3,617,817
Total $ 9,931,998 $ 2,911,458 $ 12,843,456
26 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
6. GRANT REVENUE
Pioneer administers a grant from the California Arrearage Payment Program (CAPP) that offers financial assistance for California energy utility customers to help reduce past-due energy account balances that increased during the COVID-19 pandemic. This program is funded through the federal American Rescue Plan Act (ARP A) with Coronavirus State and Local Fiscal Recovery Funds. Grant revenue recognized for the year ended June 30, 2022 was $1,396,552.
7. DEFINED CONTRIBUTION RETIREMENT PLAN
Pioneer established the Pioneer Community Energy defined contribution retirement plan under Internal Revenue Code Section 40l(a) and 457(b), to provide retirement benefits for its employees. The Plan is administered by a third-party retirement plan administrator. As of June 30, 2022, there were twelve active plan members. Pioneer contributes a minimum of $1,000 per employee per month to the Plan and contributed amounts of $193,000 and $141 ,000 in total during the fiscal years ended June 30, 2022 and 2021, respectively. Plan provisions and contribution levels were established by and may be amended by the Pioneer Board at any time.
The Plan does not create long-term liabilities such as those associated with defined benefit pension plans.
8. RELATED PARTY TRANSACTIONS
Placer County provided administrative and accounting support to Pioneer and allocates costs related to these services and facilities to Pioneer during part of the year ended June 30, 2021, as well as prior years. During the year ended June 30, 2021, Pioneer successfully transitioned to an in-house staffing model for key positions, significantly decreasing the services Placer County provides to Pioneer. Placer County continues to administer mPOWER collections and assessments. For the fiscal year ended June 30, 2021, Placer County charged Pioneer $460,000 for salaries, benefits, overhead, operating costs and administrative services related to both the CCA Program and mPOWER Programs. There were no significant related party transactions for the year ended June 30, 2022.
27 PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
9. RISK MANAGEMENT
Pioneer is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; and errors and omissions. During the years ended June 30, 2022 and 2021, Pioneer purchased liability and property insurance from commercial carriers. Coverage includes property, general liability, errors and omissions and non-owned automobile. Pioneer has general liability coverage of $4,000,000 and $10,000,000 of cyber liability coverage. Deductibles on the various policies range from $0 to $10,000.
10. PURCHASE COMMITMENTS
In the ordinary course of business, Pioneer enters into various power purchase agreements in order to acquire renewable and other energy and electric capacity. The price and volume of purchased power may be fixed or variable. Variable pricing is generally based on the market price of either natural gas or electricity at the date of delivery. Variable volume is generally associated with contracts to purchase energy from as-available resources such as solar, wind, and hydro-electric facilities.
The following table details the obligations to purchase existing energy, renewable, and resource adequacy (RA) contracts as of June 30, 2022:
Years ending June 30,
2023
2024
2025
2026
2027
2028-2032
2033-2037
2038-2042
2043-2046
Total
$
$
145,500,000
132,200,000
99,000,000
68,100,000
43 ,700,000
176,700,000
107,000,000
70,500,000
19,000,000
861 ,700,000
As of June 30, 2022, Pioneer had outstanding non-cancelable commitments to professional service providers through December 2023 for services yet to be performed. Fees associated with these contracts are based on volumetric activity and are estimated to be approximately $2.9 million.
28 11. LEASE
PIONEER COMMUNITY ENERGY
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2022 AND 2021
In June 2017, GASB issued Statement No. 87, Leases. As amended, the effective date of the Statement was for fiscal years beginning after June 15, 2021. Pioneer implemented the Statement in these financial statements for both fiscal years presented. According to GASB, the Statement aims to increase the usefulness of governments' financial statements by requiring reporting of certain lease liabilities that previously were not reported. As a result of implementing the Statement, net position at June 30, 2021 has been reduced by approximately $69,000.
In May 2018, Pioneer entered into an 88-month non-cancelable lease for office space in Rocklin.
The lease includes an option to renew for two consecutive terms of five years each.
Lease asset and accumulated amortization was as follows as of June 30:
Lease asset
Accumulated amortization
Lease asset, net
2022
$ 1,798,297
(232,038)
$ 1,566,259
2021
$ 1,798,297
(116,019)
$ 1,682,278
As of June 30, 2022, future minimum lease payments under this lease were projected as follows:
Principal Interest Total
Years ending June 30,
2023 $ 57,774 $ 64,551 $ 122,325
2024 75,621 61,889 137,510
2025 82,783 58,853 141,636
2026 92,198 55,526 147,724
2027 101,455 51,799 153,254
2028-2032 647,037 191,022 838,059
2033-2035 642,560 47,728 690,288
Total $ 1,699,428 $ 531,368 $ 2,230,796
12. FUTURE GASB PRONOUNCEMENTS
The requirements of the following GASB Statements are effective for years ending after June 30, 2022: GASB has approved GASB Statement No 94, Public-Pri'vate and Public-Public Partnerships and Availability Payment Arrangements; GASB Statement No. 96, Subscription-Based Information Technology Arrangements; GASB Statement No. 97, Certain Component Unit Criteria and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans; GASB Statement No. 99, Omnibus 2022; GASB Statement No. 100, Accounting Changes and Error Corrections -An Amendment of GASE Statement No. 62; and GASB Statement No. 101, Compensated Absences. When they become effective, application of these standards may restate portions of these financial statements. 29 PIONEER COMMUNITY ENERGY
SUPPLEMENTARY INFORMATION
COMBINING STATEMENTS OF NET POSITION
.JUNE 30, 2022 AND 2021
2022 2021
CCA mPOWER Total CCA mPOWER
Program Program Program Program
Total
ASSETS
Current assets
Cash and cash equivalents $ 12,637,494 $ 1, 124,649 $ 13,762, 143 $ 25,949,325 $ 2,323,584 $ 28,272,909 lnvest,rents 14,830,290 14,830,290
Accollllts receivable, net of allowance 17,465,041 17,465,041 8,512,333 8,512,333 Accrued revenue 9,527,730 9,527,730 3,869,044 3,869,044 Interest receivable 28,128 77, 190 105,318 102,687 102,687 Contractual assessment receivable 244,636 244,636 295,433 295,433 Other receivables 301 ,254 301 ,254
Prepaid expenses 2,056,036 2,056,036 475,586 475,586
Deposits 5,934,89 1 5,934,891 2,048,185 2,048,185
Total current assets 62,479,611 1,446,475 63,926,086 41,155,727 2,721 ,704 43,877,43 1 N oncurrent assets
Contracnial assessments receivable 5,560,98 1 5,560,981 7,392,263 7,392,263 Deposits 1,324,574 1,324,574
Lease asset, net ofamortization 1,566,259 1,566,259 1,682,278 1,682,278 Total noncurrent assets 1,566,259 5,560,98 1 7, 127,240 3,006,852 7,392,263 10,399, 115 Total assets 64,045,870 7,007,456 71 ,053,326 44,162,579 10, 113,967 54,276,546
LIABILITIES
Current liabilities
Accrued cost of electricity 15,357,098 15,357,098 7,425,535 7,425,535 Accow1ts payable 390,41 4 390,4 14 326,898 18,150 345,048 Other accrued liabilities 353,862 33,703 387,565 144,230 23,829 168,059 Interest payable 31 ,865 87,730 119,595 33,545 103,447 136,992 Supplier security deposits 21,857 21 ,857 I 59,750 159,750 Energy surcharges due to other governments 102,71 1 102,711 161 ,498 16 1,498 Bonds payable 208,542 208,542 272,420 272,420
Note payable 549,99 1 549,99 1 529,25 1 529,25 1
Lease liability 57,774 57,774 52, 109 52, 109
Total current liabilities 16,865,572 329,975 17, 195,547 8,832,8 16 4 17,846 9,250,662 N oncurrent liabilities
Bonds payable 6,368,628 6,368,628 9,298,640 9,298,640
Note payable 9,382,007 9,382,007 9,926,433 9,926,433
Lease liability 1,641,654 1,641 ,654 1,699,428 1,699,428 Total noncurrent liabilities 11,023,661 6,368,628 17,392,289 11,625,861 9,298,640 20,924,501 Total liabilities 27,889,233 6,698,603 34,587,836 20,458,677 9,716,486 30, 175, 163
NET POSITION
Unrestricted 36,156,637 308,853 36,465,490 23,703,902 397,481 24, 10 1,383 Total net position $ 36, 156,637 $ 308,853 $ 36,465,490 $ 23,703,902 $ 397,48 1 $ 24, 101,383 30 PIONEER COMMUNITY ENERGY
SUPPLEMENTARY INFORMATION
COMBINING STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
VEARS ENDED JUNE 30, 2022 AND 2021
2022 2021
CCA mPOWER Total CCA mPOWER Total Program Program Program Program
OPERATING REVENUES
Electricity sales, net $ 114,994,421 $ $ 114,994,421 $ 81 ,929,623 $ $ 81,929,623 Seivice charges 182,816 458,573 641,389 667,820 667,820 Total operating revenues 115,177,237 458,573 115,635,810 81 ,929,623 667,820 82,597,443
OPERATING EXPENSES
Cost of electricity 96,395,324 96,395,324 73,862, 156 73,862,156 Contract services 4,320,370 108,813 4,429,183 3,582,863 145,991 3,728,854 Staff compensation 2,324,055 14,508 2,338,563 1,636,154 66,265 1,702,419 General and administration 569,479 3,380 572,859 385,597 9,365 394,962 Total operating expenses I 03,609,228 126,701 103,735,929 79,466,770 221,621 79,688,391 Operating income 11,568,009 331 ,872 11 ,899,881 2,462,853 446,199 2,909,052
NONOPERATING REVENUES (EXPENSES)
Grant revenue 1,396,552 1,396,552
Investment gains (bsses) (100,342) (4I ,769) (I42,l 1 l) (74,209) 5, 168 (69,041) Interest and financing expense (463,851) (326,364) (790,215) (368,486) (380,582) (749,068) Nonoperating revenues (expenses), net 832,359 (368,133) 464,226 (442,695) (375,414) (818,109) CHANGE IN NET POSITION 12,400,368 (36,261) 12,364,107 2,020,158 70,785 2,090,943 Net position at beginning of year 23,756,269 345,114 24,101,383 21 ,736,111 274,329 22,010,440 Net position at end of year $ 36,156,637 $ 308,853 $ 36,465,490 $ 23,756,269 $ 345,114 $ 24, 101,383 31 PIONEER COMMUNITY ENERGY
SUPPLEMENTARY INFORMATION
COMBINING STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2022 AND 2021
2022 2021
CCA mPOWER Total CCA mPOWER
Program Program Program Program Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Cll5tomers $ JOO, 771 ,369 $ $ 100,771,369 $ 83,578,688 $ $ 83,578,688 Other operating receipts 151,935 151,935 168,042 652,866 820,908 Contractual assessment received, net 182,816 2,340,652 2,523,468 2,757,926 2,757,926 Payments to suppliers for electricity (92,485,640) (92,485,640) (75,277,415) (75,277,415) Payments for goods and services (4,662,693) (120,469) (4,783,162) (3,741 ,246) (130,925) (3,872,171) Payments fur staff compensation (2,271,321) (14,508) (2,285,829) (1 ,555,765) (66,267) (1,622,032) Payments of taxes and surcharges to other governments (447,129) (447,129) (262,321) (262,321) Net cash provided by operating activities 1,239,337 2,205,675 3,445,012 2,909,983 3,213,600 6,123,583
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Note payable proceeds 10,500,000 10,500,000
Bond proceeds 1,013,989 1,013,989 1,672,871 1,672,871
Grant revenue received 1,396,552 1,396,552
Principal paid on bonds and note (1,537,675) (2 ,993,890) (4,531,565) (12,187,185) (2,372,538) (14,559,723) Interest and related expenses payments (398,878) (342,081) (740,959) (288,442) (434,464) (722,906) Net cash provided by (used) noncapital financing activities (540,001) (2,321,982) (2,861,983) (1 ,975,627) (1,134,131) (3,109,758) Cash Flo\\s from Capital and Related Financing Activities Payments oflease liability (118,762) (118,762) (116,023) (116,023)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 41,253 (16,285) 24,968 (55,363) 42,068 (13,295) Purchase of investments (15,000,000) (15,000,000)
Net cash used by investing activities (14,958,747) (16,285) (14,975,032) (55,363) 42,068 (13,295) Net change in cash and cash equivalents (14,378,173) (132,592) (14,510,765) 762,970 2,121,537 2,884,507 Cash and cash equivalents at beginning of year 26,001,679 2,271 ,230 28,272,909 23,565,838 1,822,564 25,388,402 Cash and cash equivalents at end of year $ 11,623,506 $ 2,138,638 $ 13,762,144 $ 24,328,808 $ 3,944,101 $ 28,272,909 YEARS ENDED JUNE 30, 2022 AND 2021
Reconciliation of Operating Income to Net Cash Provided by Operating Activities
2022 2021
CCA mPOWER Total CCA mPOWER Total Program Program Program Program Operating income $ 11,568,009 $ 331,872 $ 11,899,881 $ 2,462,855 $ 446,197 $ 2,909,052 Adjustments to reconcile operating income to net
cash provided by operating activities:
Revenue adjusted for allowance for nncollectible accounts 217,046 217,046 1,507,096 1,507,096 (Increase) decrease in:
Accounts receivable (9,169,754) (9,169,754) (1,266,772) (1,266,772) Accrued revenue (5,658,686) (5,658,686) 1,054,189 1,054,189 Other receivables 301,254 301,254 (3,059,180) 2,757,926 (301,254) Prepaid expenses (1,580,450) (1,580,450) (310,039) (310,039) Deposits (2,562,132) (2,562,132) (343,099) (343,099)
Contractual assessments receivable 1,882,079 1,882,079 2,757,600 2,757,600 Increase (decrease) in:
Accrued cost of electricity 7,931,563 7,931,563 (475,905) (475,905) Accounts payable 45,366 45,366 141,897 17,771 159,668
Other accrued liabilities 184,051 (8,276) 175,775 210,663 (8,294) 202,369 Energy surcharges due to other governments (58,787) (58,787) 92,228 92,228 Sup plier secw-ity deposits 21,857 21,857 138,450 138,450 Net cash provided by operating activities $ 1,239,337 $ 2,205,675 $ 3,445,012 $ 2,909,983 $ 3,213,600 $ 6,123,583 32 PIONEER COMMUNITY ENERGY
SUPPLEMENTARY INFORMATION
SCHEDULE OF EXPENDITURES OF FEDERAL AW ARDS
YEAR ENDED JUNE 30, 2022
Federal Grantor/Pass-Through Grantor/Program
U.S. Department of the Treasury
California Department of Community
Services and Development (CSD)
CO VID-19 American Rescue Plan Act (ARP A)
Coronavirus State and Local Fiscal Recovery Funds
California Arrearage Payment Program (CAPP)
Total U.S. Department of the Treasury
Total expenditures offederal awards
Federal
Assistance
Listing N wnber
21.027
Pass-Through
Entity
Identifying
Nwnber
68-0283471
See accompanying Notes to Schedule of Expenditures of Federal Awards Total Federal
Expenditures
$ 1,396,552
1,396,552
$ 1,396,552
33 PIONEER COMMUNITY ENERGY
SUPPLEMENTARY INFORMATION
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AW ARDS
YEAR ENDED JUNE 30, 2022
1. BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Pioneer Community Energy (Pioneer) under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, Pioneer's financial statements.
Because the Schedule presents only a selected portion of the operations of Pioneer, it is not intended to and does not present the financial position, changes in the net position or cash flows of Pioneer.
All federal awards received directly from federal agencies, as well as federal awards passed through nonfederal agencies and organizations are included in the Schedule. Pass-through entity identifying numbers are presented when available.
The reporting entity for Pioneer is based upon criteria established by the Governmental Accounting Standards Board.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR FEDERAL AWARDS
Expenditures on the accompanying Schedule are reported on an accrual basis of accounting.
Expenditures are recognized when approved for payment and posted to Pioneer's accounting system. Expenditures are incurred prior to including on the Schedule. Expenditures for federal awards are recognized following the cost principles contained in the Uniform Guidance. Under these cost principles certain types of expenditures are not allowable or are limited as to reimbursement.
3. SUB-RECIPIENTS
Of the federal expenditures presented in the Schedule, Pioneer did not provide federal awards to sub-recipients for the year ended June 30, 2022.
4. INDIRECT COSTS
Pioneer did not elect to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
34 • •
Pl SENTI & BRINKER LLP
Ce r tified Public Acco u n tants Adviso rs
3562 Round Barn Circle, Suite 200
Santa Rosa, CA 95403
(707) 542-3343 • Office
(707) 527-5608 Fax
pbllp.com
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance with
Government Auditing Standards
Independent Auditor's Report
Board of Directors
Pioneer Community Energy
Rocklin, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the business-type activities of Pioneer Community Energy ("PCE"), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise PCE's basic financial statements, and have issued our report thereon dated December 9, 2022.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered PCE's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of PCE's internal control. Accordingly, we do not express an opinion on the effectiveness of PCE's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of PCE's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
SANTA ROSA PETALUMA
RSM US Alliance memberfirms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. memberfirm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM Internationa l.
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance with
Government Auditing Standards ( continued)
Independent Auditor's Report (continued)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether PCE's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of PCE's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering PCE's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Santa Rosa, California
December 9, 2022
• •
PISENTI & BRINl<ER llP
Ce n 1f 1ed Publh: Acc o ununts :-. Advis ors
3562 Round Barn Circle, Suite 200
Santa Rosa, CA 95403
(707) 542-3343 Office
(707) 527-5608 Fax
Report on Compliance for Each Major Federal Program
and Report on Internal Control Over Compliance
Required by the Uniform Guidance
Independent Auditor's Report
Board of Directors
Pioneer Community Energy
Rocklin, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
pbl lp.com
We have audited Pioneer Community Energy's (PCE) compliance with the types of compliance requirements identified as subject to audit in the 0MB Compliance Supplement that could have a direct and material effect on each of PCE's major federal programs for the year ended June 30, 2022. PCE's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.
In our opinion, PCE complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of PCE and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program.
Our audit does not provide a legal determination of PCE's compliance with the compliance requirements referred to above.
SANTA ROSA PETALUMA
RSM US All iance member firms are separate and independent businesses and legal entities that are responsib le for their own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is t he U.S. member f irm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US All iance have access to RSM International resources through RSM US LLP but are not member firms of RSM International.
Report on Compliance for Each Major Federal Program
and Report on Internal Control Over Compliance
Required by the Uniform Guidance (continued)
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to PCE' s federal programs.
Auditor's Responsibilities/or the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on PCE's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about PCE's compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we
• exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding PCE's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
• obtain an understanding of PCE' s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of PCE's internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on Compliance for Each Major Federal Program
and Report on Internal Control Over Compliance
Required by the Uniform Guidance (continued)
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness over internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this repo1i is not suitable for any other purpose.
Santa Rosa, California
December 9, 2022
I.
Pioneer Community Energy
Schedule of Findings and Questioned Costs
Year Ended June 30, 2022
Summary of Auditor's Results
Financial Statements
Type of report the auditor issued on whether the financial statement audited were prepared in accordance with GAAP:
Internal control over financial reporting:
Material weaknesses identified?
Significant deficiencies identified?
Noncompliance material to financial statements noted?
Federal Awards
Internal control over major programs:
Material weaknesses identified?
Significant deficiencies identified?
Type of auditor's report issued on compliance for major federal programs:
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR 200.516(a)?
Identification of major federal programs:
Unmodified
No
None reported
No
No
None reported
Unmodified
No
Assistance Listing
Number Name of Federal Program or Cluster
21.027 Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between type A and type B program:
Auditee qualified as low-risk auditee?
$750,000
No
40 Pioneer Community Energy
Schedule of Findings and Questioned Costs {continued)
II. Financial Statement Findings
No matters are reportable
III. Federal Award Findings and Questioned Costs
No matters are reportable
Year Ended June 30, 2022
41 No Uniform Guidance audit performed in prior year.
Pioneer Community Energy
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2022
42 'IONEER
COUMUNtrY ENERG.,.
Staff Report - Item 3
To: The Governing Board
From: Don Eckert, Executive Director
Item 3: Adopt Resolution Authorizing a Rate Adjustment in 2023 Date: 12/15/ 2022
RECOMMENDATION
Adopt Resolution approving implementation of Pioneer Community Energy's ("Pioneer") Generation Rate changes effective January 1, 2023.
AUDIT & FINANCE COMMITTEE RECOMMENDATION
At the December 8, 2022, Audit & Finance Committee meeting, the committee received a presentation from staff on expected changes in the Power Cost Indifference Adjustment ("PCIA") for 2023 and in Pacific Gas & Electric's ("PG&E") generation rate and the resulting impact to Pioneer's rate competitiveness. The committee evaluated three options (presented in this report) for rate adjustments and voted unanimously for Option #3.
BACKGROUND
Pioneer's current rates were implemented in March 2022 based on Board direction from the December 16, 2021, Board meeting.
PG&E has published its intended requested rate changes, which, if implemented, would increase PG&E's generation rate and at the same time decrease both the 2017 and 2021 PCIA vintages significantly. The table below illustrates the changes:
Difference
2022 Avg. 2023 Avg. Avg. Difference
($/kWhl ($/kWh) ($/kWhl (%)
$0.16722 $0.01874 12.6%
2017 PCIA Vintage 0.02602 -$0.02933 -112.7%
2021 PCIA Vintage $0.02029 $0.00164 -$0.01865 -91.9%
The driver for the increased PG&E rate is PG&E experiences the same market pressures on energy and resource adequacy as Pioneer or any other load serving entity in California. The drivers for the decreased PCIA are many of the expensive power purchase agreements that have been part of the PCIA for many years have termed out while at the same time the increase in power supply prices have made existing PG&E's assets more valuable resulting in downward pressure on the PCIA rate.
ANALYSIS & DISCUSSION
Rate setting for a CCA is unique from traditional utility ratemaking due to CCA's have a defined service territory but not a captive customer base. Customers can opt-out of our service so rate setting must include consideration of not just the CCA's revenue needs but how competitive its rates are compared to the Investor-Owned-Utility.
Rate design principles should include:
Agenda Item: 3 Agenda Date: 12/15/2022
1. Revenue Sufficiency - Rates must cover operating expenses, any debt service requirements, and prudent reserves.
2. Rate Competitiveness - Rates must allow Pioneer to successfully retain and attract customers.
3. Rate Stability - Rate changes should be minimized to reduce customer bill impacts.
4. Customer Understanding - Rates should be simple, transparent, and easily understood.
5. Equity Among Customers - Rate differences among customers should be justified by factors such as usage characteristics and cost of service.
The following are three options for the Board to consider:
Option 1 - No Change in Rates
Pioneer's rates would not be adjusted. This option supports rate stability and provides the highest discount compared to PG&E's generation rates. However, this option is not recommended . Pioneer needs to plan for extreme weather events such as the heat wave this past September that resulted in a significant draw on reserves while needing to adapt to market pressures in energy and resource adequacy. This option is sustainable but extends Pioneer's timeline to achieve its cash reserve targets and provides the most risk to rate increases in the future.
The following tables show the expected monthly bill with this option for a residential E-1 customer based on 500 kWh/month usage and the cash coverage days based on projected costs:
Generation Rate ($/kWh) $0.11528 $0.11528
*PG&E Delivery Rate ($/kWh) $0.19849 $0.19849
PG&E Surcharges ($/kWh) $0.00168 ($0.00338)
Total Electricity Cost ($/kWh) $0 .31545 $0.31039
Average Monthly Bill ( $) $157.73 $155.20
*PG&E March 2022 JRC delivery rate used for illustrative purposes 180
160
140
120
100
80 60
40 20
0 Cash Coverage Days
End of 2022 End of 2023
- Days of Cash - Target - Minimum
$0.17071
$0.19849
N/A
$0.36920
$184.60
Agenda Item: 3 Agenda Date: 12/15/2022
Option 2 - Balanced Approach
This option attempts to match the amount of customer savings to be equivalent to the contribution to reserves.
Pioneer rates would be adjusted to result in significant savings. This rate setting approach is the same as the last rate adjustment in December 2021.
The following tables show the expected monthly bill with this option for a residential E-1 customer based on 500 kWh/month usage and the cash coverage days based on projected costs:
Generation Rate ($/kWh) $0.13940 $0.13940
*PG&E Delivery Rate ($/kWh) $0.19849 $0.19849
PG&E Surcharges ($/kWh) $0.00168 ($0 .00338)
Total Electricity Cost ($/kWh) $0.33957 $0.33451
Average Monthly Bill ($) $169.79 $167.26
Cash Coverage Days
180
160
140
120
100
80 60
40 20
0 End of 2022 End of 2023
- Days of Cash - Target - Minimum
Option 3 - Balanced Approach with Program Funding
$0.17071
$0.19849
N/A
$0.36920
$184.60
This option uses the same rate setting approach as Option 2 but funds $4 million for the development and launching of programs from Pioneer's contribution to reserves resulting in the same ratepayer savings as presented in Option 2.
The following tables show the expected monthly bill with this option for a residential E-1 customer based on 500 kWh/month usage and the cash coverage days based on projected costs:
Agenda Item: 3 Agenda Date: 12/15/2022
180
160
140
120
100
80 60
40 20
0 Generation Rate ($/kWh) $0.13940 $0.13940
*PG&E Delivery Rate ($/kWh) $0.19849 $0.19849
PG&E Surcharges ($/kWh) $0.00168 ($0.00338)
Total Electricity Cost ($/kWh) $0.33957 $0.33451
Average Monthly Bill($) $169.79 $167.26
Cash Coverage Days
End of 2022 End of 2023
- Days of Cash - Target - Minimum
Summary and Recommendation
$0.17071
$0.19849
N/A
$0.36920
$184.60
The following table summarizes the three options with comparisons of discounts by PCIA vintage, ratepayer savings, contributions to reserves and programs funding:
Discount to PG&E
Ratepayer
Ootion Placer El Dorado Savinas Reserves Proarams
#1 31% 34% $97.5 $13 .0 $0.0 - ,-- - #2 20% 17% $55.2 $55.2 $0.0 #3 20% 17% $55.2 $51.2 $4 .0
Staff's recommendation is Option 3 as it provides ratepayer savings, sufficient contributions to reserves and funds the launching of programs.
Next Steps
The direction given on rates are based on the PG&E's most recent filings released in November. If the actual rates released by PG&E in late December land at or near the assumptions used for this discussion, then staff would proceed with the rate changes based on the Board 's direction and the rate adjustments would become effective January 1, 2023, or within thirty days of when the actual rates are released to give lead time for our data management consultant to implement. Subsequently, staff would present the new rate schedules at the
Agenda Item: 3 Agenda Date: 12/15/2022
following Board meeting. If the actual rates are substantially different than expected, staff will apprise the Board and ask for direction.
STRATEGIC PLAN
Approval of a rate adjustment is consistent with and supports two of Pioneer's adopted Strategic Priorities:
Strategic Priority 2: Quality in Service - Pioneer's mission to power the communities we serve. with competitive rates, reliable service, and a choice in energy options comes from our commitment to quality service. This means we listen to our customers and respond to meet their needs.
Strategic Priority 5: Financial Stability & Strategic Growth - Pioneer operates in a manner that ensures financial stability and delivers customer value. Service area expansion will allow us to leverage greater collective buying power for our communities, so we all pursue active agency growth to regions that share our values.
FISCAL IMPACT
The recommended Option #3 would yield ratepayer savings of $55.2 million during 2023, while providing $51.2 million to reserves and fund $4 million for programs.
ATTACHMENTS
1. Resolution authorizing implementation of Pioneer generation rate changes effective January 1, 2023
Before the Governing Board of
Pioneer Community. Energy
In the matter of: APPROVE IMPLEMENTATION OF
PIONEER GENERATION RA TE CHANGES
EFFECTIVE JANUARY 1, 2023
Resolution No.: _____ _
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held December 15, 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") was formed for the purpose of providing local control of energy resources, to provide competitive and stable rates, and to provide programs to foster economic development, energy efficiency, and resource conservation; and WHEREAS, Pioneer has the authority to aggregate electric load to purchase and supply electricity for customers within its jurisdiction; and
WHEREAS, Pioneer has provided electric generation service to its customers since initiating service on February 1, 2018; and
WHEREAS, Pioneer has a need to adopt customer generation rates that are competitive and contribute to Pioneer's cash reserves to allow Pioneer to respond to risk, and provide competitive and stable rates; and
WHEREAS, on December 16, 2021, the Governing Board adopted Resolution No. 2021-47 which approved the most recent customer generation rates that are currently in effect; and WHEREAS, due to the expected significant decrease in the Power Charge Indifference Adjustment ("PCIA"), and the expected significant increase in PG&E's customer generation rates, and the expected increase to power supply costs for Pioneer, and for the reasons described in more detail in the agenda report, an increase is necessary to Pioneer's customer generation rates that also results in a significant discount to PG&E's customer generation rate; and Resolution No.
December 15, 2022
WHEREAS, on October 21, 2021, the Governing Board adopted a Reserves Policy that considers operating costs, power supply expenses, power supply market fluctuations, and debt service to determine a Cash Reserve daily liquidity target of 160 days to be reached over three to five years; and
WHEREAS, the September 2022 heat wave resulted in Pioneer's days of liquidity to decline 65 days in a one-week period, demonstrating the critical importance of an adequate Reserve; and WHEREAS, the Reserve Policy identifies that less than 90 days of cash liquidity should trigger a re-evaluation of rates until target cash balances are restored and the projection of December 2022 ending cash liquidity is estimated to be less than 80 days of liquidity; and WHEREAS, the Audit and Finance Committee reviewed and discussed rate adjustment scenarios on December 8, 2022; and
WHEREAS, on December 15, 2022, the Board conducted a public hearing and reviewed, considered, discussed rate adjustment scenarios; and
WHEREAS, all the rate adjustment scenarios considered by the Board offered Pioneer customers savings compared to the PG&E Preliminary Annual Electric True-Up (AET) generation rates published November 15, 2022.
BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:
2 1. The above recitals are true and correct.
2. Upon the release of PG&E's final Annual Electric True-Up customer generation rates, the Executive Director is hereby authorized to amend Pioneers' current Electric Generation Rates Schedule authorized by Resolution 2021-47 so that Pioneer's customer generation rates will be at least 15% lower than the sum of PG&E's generation rates and the 2017 Vintage PCIA.
3. If the final approved PG&E customer generation rates result in Pioneer's ability to offer a larger discount than stated in Section 2 above while maintaining the 'Balance + Programs' Scenario that balances customer savings and the contribution to Pioneer's reserve, the Pioneer rate adjustment discount in Section 2 above will be increased accordingly.
4. Pioneer's electric generation rates, as adjusted by the Executive Director per Sections above, shall become effective on January 1, 2023, or within 30 days after PG&E releases its final 2023 customer generation rates, whichever is later.
5. Pioneer's adjusted electric generation rates shall be set forth in the 2023 Electric Generation Rates Schedule. The Executive Director shall provide a copy of the 2023 Electric Generation Rates Schedule to the Governing Board at its first meeting after the 2023 electric generation rates are implemented.
6. Resolution No. 2021-47 is hereby rescinded upon the effective date of the updated 2023 Electric Generation Rates Schedule.
'IONEER
COMMUNJrY ENERGY
Staff Report - Item 4
To: The Governing Board
From: Mark Riffey, Directors, Public Affairs, Marketing and Programs Item 4: Approve the Final Report from Community Programs Advisory Committee and Adopt a Resolution that authorizes staff to take action and create a Special Fund for Program purposes.
Date: 12/15/2022
RECOMMENDATION
Staff is recommending the Board of Directors (Board) approve the attached Final Report that includes program recommendations for near- and long-term program development. Additionally, staff is recommending that the Board adopt a Resolution to authorize staff to pursue the funding needs to convert the recommendations into action and to create a Special Fund for Program purposes.
BACKGROUND
In March 2021, the Board authorized staff to begin the process of forming a Community Programs Advisory Committee (CPAC). In May 2021, the Board approved the defined scope of work for the CPAC . In September 2021, the Board approved the committee membership. From December 2021 through November 2022, the CPAC met on a monthly basis, including two additional ad hoc committees.
ANALYSIS & DISCUSSION
Over the past year, the CPAC meetings and discussions covered a variety of topics.
First, an ad hoc committee defined the CPAC's Charge and Guiding Principles. This resulted in the following Charge:
This committee is charged with making recommendations to the Board regarding the development of customer-facing programs. In addition, the CPAC shall identify methods for engaging the public and capturing feedback from participating members of the public to determine the success of these programs.
Second, the committee identified the various stakeholders, their associated barriers to participation in these programs, and developed ideas to remove these barriers. The stakeholders include Pioneer's staff, board of directors, all customer classes, and third-party vendors. The most common barrier to entry was upfront cost and product availability. The creation of rebates will help to overcome the greatest barrier for most programs.
Additionally, the committee determined that there is an ongoing need for staff to regularly monitor state and federal legislation and the Californ ia Public Utilities Commission (CPUC) regulatory decisions, as these continually evolve and could impact future programs and funding opportunities.
Finally, the committee's recommendations can be broken down into two categories. The first category is general customer education. This component is called out separately because the committee believed education generates less of a budget impact, could utilize volunteer help, and gets Pioneer's message out to the public.
The second category is programs. Programs were broken down into a variety of phases and customer classes.
Agenda Item: 4 Agenda Date: 12/15/2022
These included:
Phase 1 - Programs that can be launched within the first year and reach a wide variety of customers.
Phase 2 - Programs that will take more time to develop, require greater effort to educate third party vendors, and warrant larger incentive levels.
Phase 3 - Programs that are more complex to develop, a longer roll out to the market time period, and require larger fund ing levels.
Phase 4 -Programs that impact smaller groups of customers, in specific segments, and require greater staff resources.
Parking Lot - Programs that were considered outside the scope of this committee but warranted documenting in the report.
The Phase 1 list of potentia l programs is comprised of the following:
Customer Class Program Idea Program Tx12e Bonus
Phase 1 ·. ·.
Residential LED Lighting & Smart Control EE X
• Screw in bulbs
• Troffers (retrofits
Residential Occupancy Sensors EE X
Residential Smart Thermostats EE X
Residential General Education - Public All
Residential Weatherization Programs EE X
Residential Electric Vehicle & At Home Level 2 Chargers GHG X Residential Building Electrification GHG X
• Heat Pump Water Heater
• Heat Pump Space Heater
Residential Permit Incentives n/a X
Residential Used Electric Vehicles GHG X
Multi-Family LED Lighting & Smart Control EE X
Multi-Family Occupancy Sensors EE X
Multi-Family Smart Thermostats EE X
Non-res General Education All n/a
• Community Colleges/High Schools
• PG&E partnership
• Webinars/Workshops
• Contractor
• Trade groups (Chambers, Contractor
Assoc., etc.)
Non-res Smart Thermostats EE X
Non-res Onsite Audits & Energy Efficiency n/a X
recommendations
Non-res Occupancy Sensors EE X
Non-res LED Lighting & Smart Control EE X
• Screw in bulbs
• Troffers (retrofit kits)
• Parkinq/Exterior
Non-res Custom EE n/a
Finally, the committee suggests that staff be requ ired to provide regular reports to the Board related to program development, customer engagement and impacts realized as a result of this committee and attached report.
Agenda Item: 4 Agenda Date: 12/15/2022
STRATEGIC PLAN
Local Engagement - Listen to our Customers.
Local Engagement - Growing our relationship with our local residents and businesses.
Local Engagement - Launch a Community Programs Advisory Committee.
Quality in Service - Ensuring the highest quality of customer service.
Quality in Service - Launch community requested programs.
FISCAL IMPACT
The fiscal impact of this resolution is $4 million transferred to the Programs Fund per year.
ATTACHMENTS
1. CPAC Report
2. Resolution
Table of Contents
Executive Summary ............................................................................................................................................................................................. 2 Section 1. Acronyms, Abbreviations and Key Terms ........................................................................................................................... 4 Section 2. History of the Community Programs Advisory Committee ...................................................................................... 7 Section 3. The Committee ................................................................................................................................................................................ 8 Section 4. Work Methodology ....................................................................................................................................................................... 10 Section 5. Community Choice Aggregators and Pioneer Community Energy ................................................................... 13 Section 6. Education .......................................................................................................................................................................................... 16 Section 7. Recommendations ....................................................................................................................................................................... 17 Section 8. Funding Options ........................................................................................................................................................................... 20 Appendix A. Stakeholders, Barriers to Participation and Potential Solutions ....................................................................... 21 Appendix B. Program Ideas .......................................................................................................................................................................... 22 Community Programs Advisory Committee Report Table of Contents I 1 Executive Summary
Problem Statement
Pioneer Community Energy's (Pioneer) Joint
Exercise of Powers Agreement includes the
following purposes for Pioneer's formation:
1. Providing electric power and other forms of
energy to customers at a competitive cost;
2. Promoting long-term electric rate stability
and energy security and reliability for
residents through local control of electric
generation resources and the overall power
supply portfolio;
3. Carrying out programs to reduce energy
consumption;
4. Stimulating and sustaining the local
economy by developing local jobs in
renewable energy; and
5. Reducing greenhouse gas emissions
related to the use of electric power
and other forms of energy in our
service territory.
The endeavors of the Community Programs
Advisory Committee (CPAC) address three of
the five purposes for the formation of Pioneer.
Although rate stability and competitiveness
will always be a priority, the cost-effective and
strategic implementation of programs will
be the va lue proposition to our customers for
Pioneer's future.
Community Programs Advisory Committee Report
Proposed Solutions
The CPAC took a holistic view in the development of
program recommendations that included various program
opportunities impacting multiple rate c lasses. The following are highlights of recommended programs that could be
implemented in the near term:
• Education - partner with local technical experts on the benefits of the program offerings.
<> Partner with community colleges, trade schools
and other vocational resources to develop a
future workforce in the renewable and energy
efficiency trades.
<> Nurture volunteer resources that become
ambassadors for Pioneer at local events, with
community groups and on social media.
<> Utilize automated resources, such as kiosks and
displays in strategic locations, and continue the
enhancement of Pioneer's website with the goal of
becoming a trusted source of information.
• Residential - this group represents the majority of
Pioneer's customers.
<> Lighting - LED lighting and occupancy sensors are
low cost but high impact.
<> Smart Thermostats - actively manage energy usage.
<> Electric Vehicle and Chargers - support new
and used electric vehicles and at-home Level 2
charging stations.
<> Heat Pump Technology - reduces harmful
carbon monoxide emissions in the home and
improves safety.
<> Education - communication of energy-saving ideas,
from no-cost to low-cost.
<> Weatherization - helps customers create a "tight"
home and reduce wasteful leaks.
• Non-Residential - includes commercial and industrial
accounts, government facilities and street lighting.
<> On-Site Audits - require a more customized
approach to identify opportunities to save energy
and reduce costs.
<> Opportunities similar to residential including lighting, education and smart thermostats.
Executive Summary I 2
Value
With these new near-term program offerings, we expect to reach a new level of value creation with the communities we serve while still supporting our priority of rate stability and competitiveness. These recommendations are a win-win-win for our customers, our environment and California's electric power grid.
The variety of program types includes:
1. Energy Efficiency - reduces energy consumption whi le saving customers money;
2. Greenhouse Gas Reduction - helps improve the sustainability of our planet; and
3. Peak Demand Reduction - supports California's electric grid by incentivizing energy conservation during the most heavily used energy times of the day.
Final Thoughts and Next Steps
The near-term program recommendations wi ll allow Pioneer to break into a new value creation with our customers and expand our brand in a positive way. The next steps wi ll be staff development of the human and funding capita l to put this report into action. For more information on the program recommendations, please reference Appendix B of this report.
Respectfully Submitted,
Geoff McLennan
CPAC Chair
Community Programs Advisory Committee Report Executive Summary I 3 Section 1. Acronyms, Abbreviations and Key Terms
During one of its first meetings, the Community
Programs Advisory Committee (CPAC) was introduced
to a lengthy list of terms, definitions, abbreviations and acronyms that would be used during presentations and
our conversations.
APPA - American Public Power Association. The voice
of not-for-profit, community-owned utilities, APPA
represents public power before the federal government
to protect the interests of customers and employees.
APPA advocates and advises on electricity policy,
technology, trends, tra ining and operations.
CAISO - California Independent Systems Operator.
The CAISO is charged with ensuring the safe and
reliable transportation of electricity on the power
grid. As the impartia l grid operator, it has no financial interest in any individual segment, thus ensuring fair
and transparent access to the transmission network
and market transactions.
CARB - California Air Resources Board. CARB is
charged with protecting the public from the harmful
effects of air pollution and developing programs and
actions to fight cl imate change.
CARE - California Alternate Rates for Energy Program.
This program provides a monthly d iscount on gas
and electricity bills. Participants qualify through
income guidelines or enrol lment in certai n public
assistance programs.
CCA - Community Choice Aggregator. The CCA
program a llows local governments to procure power
on behalf of their residents, businesses and munic ipal accounts from an a lternative supplier wh ile stil l
receiving transmission and distribution service from
their existing utility provider. A CCA is a locally owned provider of electricity - powering the communities it
serves with competitive rates, reliable service and a
choice in energy options.
CEC - California Energy Commission. As the state's
primary energy policy and planning agency, the CEC
plays a critical role in creating the energy system of
the future - one that is c lean and modern and ensures
that California, the fifth-largest global economy,
continues to thrive.
Community Programs Advisory Com mittee Report
CPUC - California Public Utilities Commission. The
CPUC regulates privately owned electric, natural gas,
telecommunications, water, railroad, rail transit and
passenger transportation companies, in addition to
authorizing video franchises.
Demand - The maximum amount of electric ity used in
a specific period of time, usually 15-minute increments, measured in kilowatts (kW); the capacity that cou ld be used and must be supported by the energy provider.
Distribution - The delivery of energy to customers'
end uses. Using the analogy of roads, distribution is
equivalent to city/town street s and roads.
DOE - us Department of Energy. The DOE is an
executive department of the US federal government
that oversees national energy policy and manages
the research and development of nuclear power and
nuclear weapons in the United States.
DR - Demand Response Programs. DR programs are
being used by some as resource options for balancing
supply and demand. These response programs provide
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.
Section I. Acronyms, Abbreviations and Key Terms I 4
DSM - Demand-Side Management. Demand Side
Management typically includes monetary incentives
to encourage consumers to buy energy-efficient
equipment, or lower prices if they agree to reduce
usage during peak times of demand.
Duck Curve - When solar power generation and energy
demand are plotted on a graph, it creates a duck
curve. It's called a duck curve because it resembles a
duck. The duck curve is important because it highlights a problem for solar power generation: Solar panels
operate best in direct sunlight, so they reach their
peak production during the daytime when the sun is
overhead, but this is when demand for electricity is
the lowest.
EE - Energy Efficiency. The practice of using less energy to provide the same amount of useful output from a
service (such as heating water, using lighting or cooling a fridge).
Electric Generation - This relates to the actual
production of energy and/or the act of purchasing
energy on behalf of customers. Electric generation
does not involve the delivery of the energy to the
customer sites.
Energy Conservation - Reducing energy consumption.
Some refer to it as the fifth fuel after oi l, gas, coal and nuclear energy production. Energy conservation is a
reduction in energy consumption that corresponds with
a reduction in service demand.
Community Programs Advisory Committee Report
Energy Star® - A program run by the US Environmental
Protection Agency (EPA) and US Department of
Energy (DOE) that promotes energy effic iency.
The program provides information on the energy
consumption of products and devices using various
standardized methods.
EPSS - Enhanced Powerline Safety Settings. The IOUs
use EPSS on their equipment. These settings a llow
equipment to shut off automatically within 1/10 of a
second. This can occur for a variety of reasons.
Fuel Switching - A feature of demand- side manage-ment program assistance, where the sponsor encourages consumers to change from one fuel to
another for a particular end-use service.
GHG - Greenhouse Gas. A gas, such as water
vapor, carbon dioxide, nitrous oxide, methane,
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs)
and sulfur hexafluoride, that is transparent to solar
(short-wave) radiation but opaque to long-wave
(infrared) radiation, thus preventing long-wave radiant energy from leaving the Earth's atmosphere. The
net effect is a trapping of absorbed radiation and a
tendency to warm the planet's surface.
HVAC - Heating, Ventilation and Air Conditioning.
A system that uses various technologies to control
the temperature, humidity and purity of the air in an
enclosed space. Its goal is to provide thermal comfort
and acceptable indoor air qual ity.
IOU - Investor-Owned Utility. A private ly owned
company, such as PG&E, that provides infrastructure
and electric ity to consumers for profit. These
companies are not required to provide data to
the public.
JPA - Joint Powers Authority. A stand-alone
organization formed by governmental entities for a
specific purpose or project. JPAs are local not-for-profit organizations that provide local control and transparency and reinvest funds in the community.
kW - kilowatt. A unit measurement of electric power.
One ki lowatt is equal to 1,000 watts.
kWh - kilowatt hour. A measure of electricity defined
as a unit of work or energy, measured as l kilowatt
(1,000 watts) of power expended for l hour. One kWh is
approximately equivalent to 3,412 BTUs.
Section 1. Acronyms, Abbreviations and Key Terms I 5
LCFS - Low Carbon Fuel Standard. This standard
is designed to decrease the carbon intensity of
California's transportation fuel pool and provide
an increasing range of low-carbon and renewable
a lternatives, which reduce petroleum dependency
and achieve air quality benefits.
Load Shifting - A strategy that addresses the
question of when energy is used, rather tha n how
much. It is intended to influence customers to shift
their consumption to off-peak hours.
Microgrid - A self-sufficient energy system that
serves a specific geographic footprint, such as a
college campus, hospital complex, business center
or neighborhood.
PCIA - Power Charge Indifference Adjustment. The
CPUC requires customers leaving the investor-owned
utility not burden the remaining utility customers with costs that were incurred to serve them. To ensure
customer indifference, CCAs and Direct Access or
"departing load" customers are required to pay a
power charge indifference adjustment.
PG&E - Pacific Gas & Electric. An investor-owned
uti lity that provides the transmission and distribution throughout most of northern California. Customers in
Pioneer's service territory can elect to receive electric generation from Pioneer or PG&E.
Community Programs Advisory Committee Report
PSPS - Public Safety Power Shutoffs. Utilities may
temporarily turn off power to specific areas to reduce
the risk of fires caused by electric infrastructure. This action is called a Public Safety Power Shutoff (PSPS) or "de-energization ."
Public Purpose Programs - A pool of money completely
separate from PG&E's gas a nd electric funds and
control led by the California Public Utilities Commission.
This charge is collected on a customer's energy bill, and the funds must be used to promote energy efficiency.
TOU - Time of Use. The goal of time-of-use rates is to
better align the costs that electricity consumers see
with the actual cost of producing/purchasing electricity.
Time- of-use rates fal l within a broader category of
innovative utility rate structures that adjust the rate customers pay for electricity over the course of the day.
Transmission - An interconnected group of lines and
associated equipment for the movement or transfer of
electric energy between points of supply and points at
wh ich it is transformed for delivery to customers or is delivered to other electric systems. Using the a nalogy of roads, tra nsmission wou ld be the highways.
Section 1. Acronyms, Abbreviations and Key Terms I 6
Section 2. History of the Community
Programs Advisory Committee
Dating back to December 2019, if not earlier, the
Board discussed the need for a community advisory
committee to assist in the development of community
programs tailored to the specific and unique needs of
Pioneer customers.
At the January 2020 meeting, the Board discussed the
formation of such a committee on a conceptual basis.
While the Board felt that forming such a committee
would be benefic ial, the item was deferred for a variety of reasons. These reasons included:
• The fact that Pioneer was a small, newly created
Community Choice Aggregator (CCA) with limited
resources;
• The Executive Director had g iven notice; and
• The complexity involved with fami liarizing citizens
with the functions of CCAs.
The Board believed that the item would be better to
consider at a later date, after a new Executive Director was hired and staff resources could be expanded to
properly support such an effort.
At the September 2020 meeting, in response to a
Grand Jury recommendation, the Board decided that
a c itizens' advisory committee shou ld be establ ished to enhance community relations and promote local
control. The Executive Director indicated he planned to present the creation of an advisory committee to the
Board in early 2021.
On March 18, 2021, the Board authorized staff to
proceed with developing a structure and budget for a
community programs advisory committee.
On May 20, 2021, the Board approved the creation of
such a committee, limited in scope to considering
programs tai lored to the Pioneer community
customer base.
community Programs Advisory Committee Report
The optimal representation from a geographica l
perspective was suggested as:
• Two members from unincorporated Placer County;
• Two members from unincorporated
El Dorado County;
• One member each from the communities of
Auburn, Colfax, Lincoln, Loomis, Placerville
and Rocklin; and
• One member at large, appointed by the
Executive Director.
In terms of ensuring diversity on the committee, the
following areas of representation were suggested:
agriculture, chambers of commerce, education
(public, elementary, secondary, co lleges), healthcare, residential, small business, large business, economic
development, senior c itizen groups, transportation and environmental (sustainabi lity, renewable energy, etc.).
Pioneer conducted outreach and invited interested
individuals to apply. Staff received 13 applications and applied the criteria shown above. The 11 members
recommended to the Board represented diverse and
relevant backgrounds from both El Dorado and Placer
counties, consistent with the criteria established by
the Board.
On September 16, 2021, the Board accepted the staff
recommendation and appointed these 11 individuals to
the Community Programs Advisory Committee (CPAC).
To view the recordings of these various meetings,
please visit Pioneer's website at
www.pioneercommunityenergy.org/about-us/
meetings- and- agendas and click on the
appropriate date(s).
Section 2. History of the Community Programs Advisory Committee I 7 Section 3. The Committee
3.1. Pioneer's Mission
Pioneer Community Energy is a
locally owned provider of electricity
- powering the communities we
serve with competitive rates,
reliable service and a choice in
energy options.
3.2. Pioneer's Vision
A community partner in reliable
energy solutions and positive
local impact, powering today and
empowering tomorrow.
3.3. Pioneer's Value
Pioneer Community Energy is
powered by our values of reliability,
excellence, independence and
placing our community first. We
put these values to work every day
for our customers and our team
members throughout our region.
Strategic priorities will help Pioneer
focus on initiatives that reinforce our
commitment to local engagement,
quality in service, being an employer
of choice, upholding operational
excellence and ensuring financial
stability and strategic growth.
3.4. CPAC Charge
This committee is charged with
making recommendations to the
Board regarding the development
of customer-facing programs. In
addition, the CPAC shall identify
methods for engaging the public
and capturing feedback from
participating members of the
public to determine the success
of these programs.
Community Programs Advisory Committee Report
3.5. CPAC Guiding Principles
The following guiding principles define the purpose of the CPAC. • The recommendations provided to the Board must contain a portfolio of potential programs intended to benefit the customers of Pioneer.
• The recommended programs must address the needs of all customer classes: residential, commercial, industrial and agricultural. • The programs must address the needs of customers who are eligible for financial assistance programs.
• The committee should seek consensus in developing and forwarding its recommendations, but consensus is not required.
• The final product of the committee will be a written report and presentation to the Board by December 2022 or earlier.
Section 3. The Committee I 8
Community Programs Advisory Committee Report
3.6. Customer Programs
The committee has solicited ideas from members of
other committees and the public and has examined
programs that have been implemented in other
jurisdictions and CCAs that meet the goals and
objectives of Pioneer.
Examples of successful options may include, but are
not limited to, programs that:
• Provide solutions for all classes of customers,
wh ich include the various rate classes and
industry types for non-residential customers.
• Avoid duplicating programs currently offered
by PG&E (although such programs could be
supplemented).
• Offer educational programs and services to
support customer needs.
• Encourage energy efficiency and energy
conservation measures by providing incentives
for replacing outdated and inefficient fixtures
and appliances.
• Reduce greenhouse gas emissions (electric
vehic les, fuel switching, solar/batteries, etc.).
• Establish energy audit resources that
recommend efficiencies.
◊ Residential Online Audits
◊ On-site Small Business Audits
• Create a team of volunteers to provide
Pioneer-related updates, accurate general
information and program information to service
organizations and other interested community-based groups, and who wou ld support Pioneer at large regional events.
3.7. Customer Satisfaction
The committee recommends customer feedback
loops and metrics to measure success in the programs
implemented. Recommended activities include:
• Conducting customer satisfaction surveys to
include program participants.
• Developing metrics to measure the effectiveness
of programs implemented (such as reduction in
energy consumption, etc.). The specific metrics will
be based on future funding levels.
Section 3. The Committee I 9
Section 4. Work Methodology
Over the course of several meetings, the committee
discussed the various stakeholders, barriers to entry
and the best ways to overcome the identified barriers.
In this section, we discuss the most common item for
each of these. For the entire list, see Appendix A.
4.1. Stakeholders
The group identified a number of stakeholders,
including Pioneer staff, the Pioneer Board, PG&E and
the various classes of customers.
The customer portion of the stakeholders list is broken down by customer class. Each class of customer has
unique barriers to entry and solutions to overcome
each of these barriers; for example, residential
customers may see initial product cost as the
greatest obstacle for program participation. This
barrier points to the need for higher rebates at the
time of product installation.
4.2. Barriers to Entry
The greatest challenges for Pioneer staff are
resources, people and time. As the community
programs are developed and launched, staff time
wi ll become more constrained.
To date, the Board has made low rates a priority.
Consequently, as programs are designed and budget
is assigned to each program, the overall impact to
rates should be fully vetted and understood.
For most of the customer classes, product availability
and cost are two of the greatest barriers to entry.
'
Community Programs Advisory Committee Report
4.3. Options for Overcoming Barriers
To address staffing needs, senior management
should plan future staff growth accordingly. Program
development and launch must be conducted in a
controlled and steady manner.
As programs are designed and planned for launch,
the leadership team needs to understand the financial
implications as they relate to the various rates charged to customers.
Pioneer staff must design programs based on the
technology that is readily available in the market. If a program is launched but no product is available in the
near term, customers will not participate. Pioneer staff must establish rebate/incentive levels that positively
influence customer and contractor participation.
4.4. State and/or Federal Legislation
and Regulation Changes Related to
Electrical and Building Codes
The greatest driver for rebate and incentive programs
is California's Title 24, Parts 6 and 11 , w hich is also known as the Building Energy Efficiency Standards or Energy
Code. While this code applies only to projects that
are required to obtain a permit, it is also considered
a guiding tool for calculating reportable results and
necessary rebate levels, and it is used as the baseline by the California Public Utilities Commission (CPUC) and the California Energy Commission. This Energy Code is
considered a vital part of California's Climate Action
Plan. The 2022 Energy Code will produce benefits to
support the state's public health, climate and clean
energy goals.
Section 4. Work Methodology I 10
The California Energy Commission updates the
Building Energy Efficiency Standards every three
years by working with stakeholders in a public
and transparent process.
Staff must continua lly monitor the updates
to Title 24, Part 6, and determine if existing
programs should be adjusted accordingly.
The option of a rebate or incentive is intended
to accelerate the adoption of the related
technology. Thus, if a technology such as a
high efficiency air conditioner, for example, is
required by Title 24, a rebate wil l not be offered
for the same technology.
Other sorts of leg islation at the state and federal
levels can impact the type of programs offered
and the customer's rate of adoption. Pioneer
staff will continue to monitor state and federal
legislation, as wel l as CPUC regu lations, to stay
apprised of any formal actions implemented
that wi ll impact Pioneer, our programs and our
customers; for example, in 2022, the State of
California enacted several pieces of legislation
that impact energy usage and opportunities to
support development of various programs.
Beyond the need to monitor federal and state
legislation, Pioneer staff must be aware of
changes to the tax laws. Tax benefits have a
direct impact on the overall cost to customers
and, thereby, have a direct impact on needed
rebates and incentives.
Community Programs Advisory Committee Report
The recently enacted federal legislation known as the Inflation Reduction Act (signed into law in August 2022) offers many examples of items that impact potential programs. These may include, but are not limited to, the following.
• $4,000 tax credit for purchasing a used electric vehic le. • $7,500 tax credit for purchasing a new electric vehicle. • Electric vehicle chargers placed in service prior to
December 31, 2032, are eligible for a 6 percent alternative fuel refuel ing property cred it, capped at $100,000, and 20 percent credit on amounts in excess of $100,000.
• Residential Clean Energy Cred it (RCEC) is extended
through December 2034 a nd adds stand-alone storage
for eligibility for the RCEC a long with wind, solar and fuel cell.
• Residential Energy Property Credit (REPC) extends the cred it to homeowners who instal l appl iances that make energy efficiency improvements to their homes or who
have a home energy audit completed.
• The energy efficient home tax credit is extended through December 2032. Homes meeting the Energy Star Single
Family New Homes National Program Requirements or the
most recent Energy Star Manufactured Home Nationa l
Program requ irements qualify.
Some of these programs have income or domestic production conditions. Pioneer staff will need to monitor this specific legislation as it is further defined and rol led out to the public through regulatory proceedings.
In addition, Pioneer staff must continue to monitor and be aware of PG&E requirements that go beyond local building codes, such as interconnection and related electrical
technologies. Accord ingly, Pioneer programs must educate customers about the importance of referring to local building codes and PG&E interconnection requirements before
undertaking major projects.
As a result, Pioneer's portfolio of programs wi ll be evaluated every year. Any needed updates wi ll be undertaken to ensure that all programs and education activities comply with
relevant legislation and CPUC Codes and Standards and
continue to be current and relevant.
Section 4. Work Methodology I 11
4.5. Monitoring and Coordination
The legislative landscape and funding sources related to energy efficiency, battery storage, electric vehicle incentives and other carbon reduction programs are highly dynamic and evolving rapidly. As a result, Pioneer's portfolio of programs will need to be evaluated on a regular basis with each new applicable regulation, but at a minimum every year.
Program development undertaken by Pioneer that takes advantage of these incentives needs to be complementary in nature to programs offered by other regu latory agencies or utilities and not resu lt in overlap, duplication or conflict. In addition, mechanisms must be in place to ensure that customers cannot cla im multiple rebates on a single incentive unless specifically allowed by all providers.
Any needed updates will be undertaken to ensure that all programs and education activities comply with relevant legislation and CPUC Codes and Standards and continue to be current, responsive to the customer base and relevant to stakeholders.
community Programs Advisory Committee Report Section 4. Work Methodology I 12 Section 5. Community Choice Aggregators and
Pioneer Community Energy
5.1. History of Community Choice
Aggregators (CCAs)
Historically, several investor-owned utilities (IOUs) had a monopoly on the procurement and distribution of
electricity throughout California. The energy crisis that occurred in the 1990s prompted the state Legislature
to develop an a lternative mechanism to a llow the
purchase of power from independent sources,
separate and apart from the IOUs.
Assembly Bill 117, enacted in 2002, a llows cities and
counties to come together and form CCAs. In 2010, the
first CCA, MCE (formerly Marin Clean Energy), started
providing service to residents and businesses in its
service territory. CCAs procure the energy, whi le the
IOUs distribute the energy over their transmission
lines. This arrangement allows locally formed CCAs to
purchase and/or generate electri city for customers
located within the boundaries of their jurisdictions.
Local control a llows each CCA to purchase electricity
that reflects its Board's priorities, such as to source cleaner energy and/or lower cost energy than that
provided by the IOUs. As of 2022, there are 25 CCAs in
California serving over 200 communities and more
than 11 mi llion customers.
Each CCA operates as a nonprofit public agency with a
public ly accountable Board, made up of locally elected officials who represent their respective member
agencies. CCAs are not-for-profit public agencies that
purchase electricity for residents and businesses in the community, disrupting the long-held monopoly of IOUs
and encouraging competition. As of 2022, Pioneer is
one of 25 operational CCAs in California.
Since their inception in Cal ifornia, CCAs have played a pivotal role in offering more competitive energy rates
and improved electric service across the state. CCAs
work with the IOUs, such as PG&E, to deliver power and
maintain the energy grid.
Community Programs Advisory Committee Report
5.2. History of Pioneer
Community Energy
Pioneer Community Energy is a local not-for-profit
provider of electricity - powering the communities
served with competitive rates, reliable service and a
choice in energy options.
Pioneer Community Energy originated in 2015 as the
Sierra Valley Energy Authority, a joint powers agreement between Placer County and the City of Colfax.
In 2017, the joint powers agreement was revised
to rename the entity Pioneer Community Energy,
establishing the entity as a CCA. Pioneer started
providing electricity services in 2018 to the communities of Auburn, Colfax, Lincoln, Rocklin, Loomis and most of unincorporated Placer County.
In 2021, Pioneer achieved status as an independent
entity with the payoff of debts and the hiring of
necessary operational staff.
In 2021, in response to our customers' requests for a
way to reduce their greenhouse gas emissions, Pioneer
began offering Green 100, a 100 percent renewable rate
option unique to the area.
In 2022, Pioneer started providing the same stable and
re liable electric service to most of unincorporated El Dorado County and the City of Placerville.
The Board consists of nine local ly elected represen-tatives from the County Board of Supervisors in El Dorado and Placer counties, the City Councils of
Auburn, Colfax, Lincoln, Placerville and Rocklin, and
the Town Council of Loomis.
5.3. Relationship to PG&E
Pioneer purchases energy on behalf of its customers.
The portfolio of vendors is diverse. Pioneer's purchase of energy meets the state's renewable energy require-ments wh ile maintaining stable and competitive energy rates. Pioneer is responsible for the "generation" portion of a customer's bill. While Pioneer does
not own any generation facilities, it procures all
necessary energy.
Section 5. Community Choice Aggregators and Pioneer Community Energy I 13 PG&E owns the poles, wires and a ll the related infrastructure and equipment. PG&E is responsible for the ongoing maintenance of all equipment and for delivering the energy to all customer sites (up to the meter). In addition, PG&E is responsible for the "transmission" and "distribution" portions of a customer's bill. The "transmission" can be considered the highways of energy movement and the "distribution" can be looked at as the cou nty and c ity roads of energy movement.
Electricity Delivery Customer
Pioneer procures your energy.
PG&E delivers energy, maintains
lines, and sends bi ll s.
You get a choice in your power -
competitive and stable rates,
energy options, and exceptional
customer service.
PG&E and Pioneer offer programs to customers. These
programs are intended to support and complement
each other, not overlap or compete.
PG&E is the billing agent for Pioneer. PG&E is required to bill the customer for all components of energy costs and transfers funds collected to Pioneer on a
regular basis.
Pioneer works closely with PG&E to resolve customer
issues on a wide variety of topics. PG&E and Pioneer
work together to communicate changes in rates,
programs or other mandate-related topics that have a
direct impact on customers.
Community Programs Advisory Committee Report
On average, Pioneer's generation costs are cheaper
than PG&E's. Many factors contribute to lower energy
rates, including the following:
• Pion eer is a local not-for-profit agency, while PG&E is obligated to its corporate shareholders.
• Pioneer can focus on the needs of local
customers, while PG&E is more regiona l in scope.
• The Board has identified competitive and stable
rates as Pioneer's Number One priority.
• Pioneer's overhead and non-energy expenses are
extremely low.
• Pioneer's staff continually seek out lower-cost
options for procuring energy.
• Pioneer's energy contracts are executed to
maintain a downward pressure on rates.
Pioneer customers are also PG&E customers.
Section 5. Community Choice Aggregators and Pioneer Community Energy I 14
5.4. Relationship to CAISO
The California Independent System
Operator (CAISO) was created by the
California Legislature in 1998 as part of the
state restructuring of electrical markets
after the energy industry was deregulated.
The CAISO manages the flow of electricity
across the high-voltage, long-distance
power lines that make up the power grid
serving 80 percent of California and a small
part of Nevada. It also maintains reliability
of the grid, maximizes routing efficiency and
operates the wholesale energy market.
5.5. Statewide and Regional
Programs
During the process of formulating
recommended programs, there has been
a rapid development in the availability
of federal funding for energy efficiency
through the Inflation Reduction Act signed
into law in August 2022, as outlined in
Section 4.4. The Act makes available
$369 billion in funding for energy and
climate change measures over the next
10 years. Pioneer staff must continue to
monitor the deployment of programs
generated by this bill.
In addition to federal funding, state
incentives continue to roll out through the
CPUC and state legislative action.
The committee recommendations listed
in Section 7 require staff to develop a
process to evaluate future programs and to
promote customer education about these
opportunities as they become available.
Community Programs Advisory Committee Report Section 5. Community Choice Aggregators and Pioneer Community Energy I 15 Section 6. Education
Prior to the committee developing the comprehensive
list of recommended programs, it was necessary to
invest time educating and increasing the committee
members' general awareness of relevant issues. This
endeavor was conducted through individual research
and various presentations.
6.1. Review of Programs Developed by
CCAs and Regional Utilities
The wide variety of programs offered by CCAs
throughout the state provides a great deal of
information that can be used in the development of
future programs for Pioneer customers.
The California Community Choice Association (CalCCA)
represents the interests of California's CCA energy
providers in the Legislature and at state regulatory
agencies, including the CPUC, California Energy
Commission and California Air Resources Board. The
association also tracks the various programs offered by CCAs in California.
In addition to the programs offered by other CCAs, the
committee reviewed programs offered by Roseville
Electric Utility, Sacramento Municipal Utility District (SMUD) and PG&E.
Pioneer customers are potentially eligible for all PG&E programs. As such, Pioneer staff must design programs
in a manner that does not duplicate the existing
programs, as noted in Section 4.5. Pioneer programs
should address customer c lasses and technologies
that are not part of PG&E's existing program portfolio.
6.2. Presentations
Several external and internal subject matter experts
were cal led upon to make presentations to the
committee on a wide variety of topics. The goal was
to provide some additional insight into program ideas
and increase awareness of related technologies. The
following list summarizes the key presentations.
Community Programs Advisory Committee Report
Pioneer Community Energy
Mark Riffey, Director, Public Affairs,
Marketing and Programs
The topic of discussion was an overview of Pioneer and
CCAs in general. The second presentation covered
general terms and acronyms. The committee also
discussed the various types of programs, funding
options and offerings from surrounding utilities and
regional CCAs.
Building Decarbonization Coalition
Amy Rider, Local Government Policy Lead
The discussion covered building electrification,
converting gas-fired appliances to all-electric
appliances and the resulting benefit to Pioneer, our
customers and the environment.
MCE
Brett Wiley, Senior Customer Program Manager
The topic of discussion was electric vehicles (EVs) and EV chargi ng stations. The EV charging station portion of the presentation addressed at-home charging stations,
workplace charging stations and public charging
stations. Brett discussed opportunities to support the
advancement of EVs and any c limate-related goals
and mandates for Pioneer's member agencies.
Pioneer Community Energy
Sam Kang, Chief Operating Officer
The discussion covered many topics related to energy
purchases and portfolio management, including
the broad range of energy products procured, risk
management and portfolio management.
California Solar and Storage
Association (CalSSA)
Brad Heavner, Director of Public Policy, and Kate
Unger, Senior Policy Advisor
This presentation addressed the benefits of solar
combined with battery storage in a residential
application and explained some of the challenges,
hurdles and potential solutions.
Section 6. Education I 16
Section 7. Recommendations
This section has two components: recommended
education efforts and recommended rebate programs.
7.1. Education
This component is called out separately because
the committee believes education generates less of
a budget impact, could utilize volunteer help, gets
Pioneer's message out to the public and can be done
concurrently with launching the programs outlined in
Section 7.2.
Pioneer staff should partner with local technical
experts to educate customers on the benefit of various
technologies. These can include but are not limited to
electric vehicles (EVs), onsite EV charging stations, fuel switching away from gas-fired appliances, solar and
many more. Pioneer can offer training webinars to help
customers lower energy consumption at home or work,
which will help them save money.
Pioneer should explore available funding opportunities
to support this work.
7.1.1. Partnering with Community Colleges,
Trade Schools and Others
The committee believed that Pioneer should partner
with community colleges, trade schools, apprenticeship
programs, high schools and other vocational resources
to provide an improved curriculum to develop special-ists in renewable and energy-efficient trades. A curric-ulum could also be developed to offer a class on CCAs, the future of energy and other related topics.
Establishing relationships with various educational
institutions could be beneficial. Pioneer should consider investing in brick-and-mortar training facilities, similar to demo houses, to teach installers how to install new
technologies, such as a garage with Level 2 electric
vehicle charging stations or a heat pump water heater
that align with program offerings. These are just two
examples of how Pioneer can invest in the development
of future technicians in the industries.
Pioneer staff should work with the local educational
institutions and trade schools to identify funding
available through state and federal legislation to
support these endeavors.
Community Programs Advisory Committee Report
7.1.2. Developing Volunteer Resources
The committee believes accurate information must
be disseminated to the public to minimize rumors and
negative social media. Toward this end, the committee
believes that volunteers should be solicited and given a short training to support the following activities:
• Building a pool of speakers who could reach
out to local chambers of commerce, service
organizations (Rotary, Lions, etc.) and community
groups to make presentations discussing CCAs
and Pioneer's advantages.
• Creating a pool of volunteers who could help staff
county fairs, community events and other public
events in support of Pioneer.
7.1.3. Automated Resources
Create kiosks and displays to be placed in member
agency facilities, such as libraries, parks, etc.
In addition, enhancement of Pioneer's website should
continue. The website should become a trusted source
of information on a wide variety of topics.
The kiosks, displays and enhanced website could
offer everything from "How To" videos to links to third-party programs and previously recorded webinars and workshops.
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Section 7. Recommendations I 17
7.2. Programs
The breakdown of program ideas between the different
phases is based on several factors, which include the
ease of developing the program, the availability of the technology and the potential number of customers
who can participate in the program. Each phase
includes programs designed for residential, multi-family and non-residential customers.
The actual timing of program rollout will be greatly
impacted by the availability of funds and staff time.
In the context of this report, the phases listed in
Appendix B reference the order and timing of implem-entation, and these may change depending on the funding and resources committed to the programs.
7.2.1. Residential
Residential customers, for the purposes of this report, are defined as customers on a residential rate tariff
and not living in a multi-family complex or mobile
home park. The customers can be further broken down
into income-qualified customers and non-income-qualified customers. Income-qualified customers are generally considered "hard to reach" and may
require additional incentives to participate in any
programs. Income-qualified customers are those who
are currently enrolled in a PG&E- or Pioneer-managed
program. Examples of these include but are not limited
to the California Alternative Rates for Energy (CARE)
program and Family Electric Rate Assistance (FERA)
program. The category of renters versus owners could
be a qualifier. Pioneer does not have the data to make
this determination.
Community Programs Advisory Committee Report
The near-term program ideas include the following:
• Lighting - LED lighting and occupancy sensors are
low cost and highly impactful.
• Smart Thermostats - These devices allow
customers to actively manage their energy usage.
• EVs and Chargers - These categories include
programs for new and used EVs and at-home
Level 2 charging stations.
• Heat Pump Technology - This technology helps
reduce harmful carbon monoxide emissions in a
home and improves overall safety by replacing
gas-fired appliances.
• General Education - As discussed earlier,
education of all customers is the key to success for
all programs. This category can include low-cost
and no-cost energy-saving ideas.
• Home Weatherization - These programs will help
customers create a "tight" home and reduce
wasteful leaks.
7.2.2. Multi-Family/Mobile Home Parks
For the purposes of this report, multi-family and
mobile home park customers are grouped together.
Multi-family customers are defined as customers
on a residential rate tariff and living in a multi-family complex with four or more units attached. Mobile
home parks are sites with leased or owned spaces
occupied by mobile homes with permanent utility
service, either through a master meter or individual
meters. The customers can be further broken down
by income-qualified customers and non-income-qualified customers. The definition of income-qualified is consistent with that listed at left. The idea of renters versus owner could be a qualifier. Pioneer does not
have the data to make this determination.
The near-term program ideas include the following:
• Lighting - LED lighting and occupancy sensors are
low cost and highly impactful.
• Smart Thermostats - These devices allow
customers to actively manage their energy usage.
Section 7. Recommendations I 18
7.2.3. Non-Residential
Non-residential customers, for the purposes of this
report, are all customers not on a residential rate.
This class includes small business, medium to large
accounts, key account customers, government entities,
streetlights and other miscellaneous accounts. These
customers can be further segmented based on if they
are a nonprofit organization or a small business. For
the purposes of this report, a nonprofit organization,
also known as a non-business entity, not-for-profit
organization or nonprofit institution, is a legal entity organized and operated for a collective public or social benefit, in contrast with an entity that operates as a
business aiming to generate a profit for its owners. A
small business is a non-residential customer on a rate
code of Bl or equivalent that has an energy usage
below a yet-to-be determined maximum amount of
kWh per year. Income or profit-related criteria for small business should not be used for this determination.
These two categories are generally considered "hard
to reach" and may need additional incentives to
participate in any programs.
Community Programs Advisory Committee Report
The near-term program suggestions include:
• General Education - As discussed earlier,
education of all customers is the key to success for
all programs. This can include low-cost and no-cost energy-saving activities. • On-Site Audits - Larger customers are unique and
generally require an individual energy audit to
identify opportunities to save energy and money.
• Lighting - LED lighting and occupancy sensors are
low cost and highly impactful.
• Smart Thermostats - These devices allow
customers to actively manage their energy usage.
7.2.4. Miscellaneous
The programs listed in this section are not categorized by customer rate class. These are items of interest
that require additional research to determine each
program's potential and are generally more complex in
nature than a traditional energy-efficiency program.
These program ideas are generally longer range,
address a wide variety of topics and include:
• Residential Energy Management Systems
• Variable Speed Drives for equipment
• Air Compressors
• Financing
7.2.5. Emergency Services
Programs in this section provide support and guidance,
related to backup power, for local first responder
facilities and 24/7/365 cooling centers. These programs may not be designed to save energy, but rather
support the residents and those in need during
emergency situations.
7.2.6. Parking Lot
The items listed in the Parking Lot section of Appendix B were considered outside the scope of the committee
or such a long-term/large-scale undertaking that the
committee placed them into the parking lot for staff's
future consideration.
Section 7. Recommendations I 19
Section 8. Funding Options
As programs are developed, any impact to Pioneer's established rate tariffs must be fully understood and carefully evaluated. The committee recognizes that a major priority of the Board is to keep rates stable and competitive while maintaining quality service.
The primary strategy in fund ing the recommended programs contained in this report is to tap into resources that will not impact the current rate structure. This strategy can be accomplished in multiple ways, such as:
• Seeking out and applying for various grants that may be available for targeted programs at the state and federa l levels.
• Submitting an application for Pioneer to collect and administer Public Purchase Program Charges (PPPC) that are currently collected and administered by PG&E. The funds can then be directed to programs specific to the needs of Pioneer customers.
• Submitting an application for Pioneer to become a broker for future Low Carbon Fuel Standard (LCFS) cred its and sell them on behalf of our member agencies. These funds can be directed to EV-related programs and education.
The Board currently has a policy that builds reserves to a specified threshold. Once that threshold has been reached, the funds formerly allocated to increasing the reserves could be redirected to budgeting for these programs.
The implementation of any of the above strategies is intended to provide funding over the course of time that will not negatively impact the rate structure or the differential between PG&E rates and Pioneer rates.
The Board does have the option of funding programs directly out of the General Fund, subject to overall consideration of the annual fiscal budget. Nothing in this report limits the Board from taking action that could impact future rate tariff structures.
The strategies listed in this section are conceptual and require more work from staff and future budget planning to properly offer them as formal options.
community Programs Advisory committee Report Section 8. Funding Options I 20 Appendix A. Stakeholders, Barriers to
Participation and Potential Solutions
Stakeholders I Barriers to Participation I Potential Solutions
1. Hire staff
Pioneer 1. Adequate staffing 2. Hire third-party contractors - Direct Install programs Community 2. Adequate funding 3. Apply for PPPC funds
Energy Staff 4. Apply for various grants
5. Community Colleges/Internships
1. Adequate funding 1. Seek outside funding
Pioneer Board 2. Program focus 2. Impact on rates
3. Adequate program diversity
Single-Fami ly
1. Equipment/Installation cost 1. Rebates & Incentives
2. Equipment Selection 2. Education Home Customers 3. Solar building codes 3. Incentives for builders to go beyond Title 24
1. Equipment/Installation cost 1. Rebates & Incentives
Multi-Family
2. Equipment Selection 2. Education
3. Ownership vs. Tenant 3. Incentives for builders to go beyond Title 24 Customers 4. Difficult to assign benefits to one tenant (Electric 4 . Offer direct instal l programs Vehicle & Solar) 5. Discuss with PG&E - shared benefits
1. Equipment/Instal lation cost 1. Rebates & Incentives Income-Qualified 2. Equipment Selection 2. Education
Customers 3. Availability of funds 3. Direct install programs 4 . Other factors such as age, medical condition, etc. 4 . Focus programs on low-cost items
1. Equipment/Installation cost
Mobile Home 2. Equipment Selection 1. Rebates & Incentives Customers 3. Difficult to assign benefits to one tenant (Electric 2. Education Vehicle & Solar)
1. Customer Awareness 1. Targeted communication
Small to 2. Equipment/Installation cost 2. Rebates & Incentives Medium-sized 3. Equipment Selection 3. Education
Business (SMB) 4 . Ownership vs. Tenant 4 . Target building owners and landlords Customers 5. Lack of focus on long-term solutions 5. Focus on programs with short payback 6. Conversion from traditional natural gas to electric (restaurants) 6. Working w ith trade groups and chambers Large/Key 1. Utility significance
2. Personal connection 1. Custom Rebates & Incentives Account 3. Unique application 2. Key Account Manager Customers 4. May be related to larger projects
1. Equipment availability
Agricu lture 2. Equipment/Installation cost 1. Vendor/Sales team connection 3. Agricultura l electric rates Customers 4 . Conversion from traditional diesel to electric 2. Work through Farm Bureau
5. Uncertainty with water and its impact on the industry
1. Short off-season
Municipal/School 2. Adequate funding 1. Program launch planning
3. Adequate facil ities/maintenance team 2. Early vendor/contractor support for planning and installation - Customers 4 . Equipment availability fill in/support staff (support)
5. Equipment/Installation cost
PG&E 1. Time 1. Work closely with CCA Liaison and include him/her as early as possible
Equipment 1. Limited potential customers 1. Offer upstream/midstream rebates Vendors/Sales 2. Identify product/supply chain issues and delay program launch Reps 2. Supply chain 3. Vendor relationships and training
1. Offer upstream/midstream rebates
Equipment 1. Technology knowledge 2. Identify product/supply chain issues and delay program launch Installers/ 2. Supply chain 3. Certify installers/contractors
3. Staffing limitations 4 . Contractor training Contractors 4 . Reliable installers/contractors 5. Work with local high schools, trade schools and community colleges to support development of various trades
Individuals with 1. The ability to read or see program information and 1. Create online fillable forms Disabilities forms 2. Set up Adobe Acrobat to read aloud all PDF documents Community Programs Advisory Committee Report Appendix A. Stakeholders, Barriers to Participation and Potential Solutions I 21 Appendix B. Program Ideas
Program Phases
Community Programs Advisory Committee Report
Near-Term
Programs we can launch within the year such as lighting, smart thermostats, education and building electrification.
Medium-Term
EV charging, commercial cooking, demand reduction programs and appliance replacements
Medium- to Long-Term
Financing options through Pioneer for energy efficiency and comprehensive energy management systems
Long-Term
Workforce development, community solar projects and backup generators for residential
No timeline set
Micro grids with hydrogen power, neighbor-to-neighbor energy sales, financing program and EV load-shifting rates
Appendix B. Program Ideas I 22
Key to Program Type Abbreviations
EE - Energy Efficiency-focused programs
GHG - Greenhouse Gas Emissions avoidance-focused programs DR - Peak Demand Reduction-focused programs
Customer
I Program Idea Class
Phasel
LED Lighting & Smart Control
Residential • Screw-in bulbs
• Troffer ceil ing fixtures (retrofits)
Residential Occupancy Sensors
Residential Smart Thermostats
Residential General Education - Public
Residential Weatherization Programs
Residential Electric Vehicle & At- Home Level 2 Chargers Building Electrification
Residential • Heat Pump Water Heater
• Heat Pump Space Heater
Residential Permit Incentives
Residential Used Electric Vehicles
Multi-Family LED Lighting & Smart Control
Multi-Family Occupancy Sensors
Multi-Family Smart Thermostats
General Education
• Community Colleges/High Schools
Non-res • PG&E partnership
• Webinars/Workshops
• Contractor
• Trade groups (chambers, contractor associations, etc.) Non-res Smart Thermostats
Non-res On-site Audits & Energy Efficiency recommendations Non-res Occupancy Sensors
LED Lighting & Smart Control
Non-res • Screw-in bulbs
• Troffer ceil ing fixtures (retrofit kits)
• Parking/Exterior
Non-res Custom
Community Programs Advisory Committee Report
I Program Type I
Low-Income
Bonus
EE X
EE X
EE X
All
EE X
GHG X
GHG X
N/A X
GHG X
EE X
EE X
EE X
All
EE
EE
EE X
EE X
EE
Appendix B. Program Ideas I 23
Customer
I Program Idea I Program Type I Low-Income
Class Bonus
Phase 2
Residential Whole-House Fans EE X
Residential Solar Attic Fans EE X
Residential Pool Pumps EE X
Residential HVAC Tune-ups EE X
Residential At Home Energy Toolkits EE X
Residential Refrigerator Recycling - Direct Install EE X Residential Solar & Battery Installations GHG/DR X
Building Electrification
Residential • Tankless Water Heater GHG X • Heat Pump Dryer • Induction Cooktop
Residential Panel Upgrade GHG/DR X
Multi-Family Weatherization Programs EE X
On-site Electric Vehicle Chargers
Multi-Family • Level 2 and DC Fast Chargers GHG X
• New Construction vs. Existing
Multi-Family HVAC Tune-ups EE X
Multi-Family Refrigerator Replacement & Recycling Direct Install EE X Non-res Solar & Battery Installations GHG/DR
Non-res Electric Vehicle Fleet Conversion & Chargers GHG Electric Vehicle Charging Stations
Non-res • Level 2 and DC Fast Chargers GHG
• New Construction vs. Existing
Non-res Building Electrification GHG X
Non-res Commercial Cooking Equipment EE X
Non-res Demand Reduction Programs DR
community Programs Advisory Committee Report Appendix B. Program Ideas I 24 Customer
I Program Idea I Program Type I
Low-Income
Class Bonus
Phase3
Financing
Residential • On Bill All
• Third Party
Residential Energy Management Systems EE/DR X
Non-res Variable Speed Drive EE
Non-res Air Compressor EE
Financing
Non-res • On Bill All X
• Third Party
Program Idea I Program Type I Target Segment
Phase4
New Construction - Beyond Bui ld ing Code EE/GHG Res
Workforce Developm(clnt
• High School Partnership Al l All • Community College Partnership • Trade School Engagement
Community Solar DR Res
Hydrogen Power - On-site GHG All
Climate Action Pla n (awareness/support) All Muni's
Residential - Backup Generators n/a Res
• Multi-Family programs must take into consideration working with tenant versus property manager/owner. • Smal l business programs must take into consideration working with tenant versus property manager/owner.
Program Idea I Program Type I Target Segment
Parking Lot Indefinite Hold
Medical Baseline - Expanded Res Res
Electric Veh icle - Load Shifting (Rates) GHG / DR All
Micro Grids DR Utility
Financing Program (mPower) Al l All
Community BTM* Grid Program DR Res
Hydrogen Power - Utility/Micro Grid GHG Utility
Neighbor-to-Neighbor Energy Sales DR Res
Natural Gas Fuel Cells - Micro Grids DR Utility
Climate Action Plan (awareness/support) All Muni's
• BTM - Behind the meter/customer side of meter
community Programs Advisory Committee Report Appendix B. Program Ideas I 25
Before the Governing Board of
Pioneer Community Energy
In the matter of: Approve the Community Programs
Advisory Committee (CPAC) Final Report and Adopt a
Resolution to authorize staff to convert the
recommendations into action and create a Program
Special Fund.
Resolution No.: -----
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held December 15, 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, in March 2021 the Board authorized staff to begin the process of forming a Community Programs Advisory Committee; and
WHEREAS, in September 2021 the Board approved the CPAC members; and WHEREAS, the CPAC met from December 2021 through November 2022 to learn about a variety of topics from various subject matter experts; and WHEREAS; the CPAC has developed a list of potential programs that target all customer classes and a variety of technologies and strongly believes that customer education is key to the success of any programs; and
WHEREAS; the recommended financial commitment of the programs has been defined as $333,333 per month; and
WHEREAS; a Special Fund will be needed to isolate and dedicate allocated funding for Programs that will 'roll' from one fiscal year to the next; and WHEREAS; Program administration and staffing are necessary for a successful implementation of Programs and will be funded from the dedicated Program funding.
Resolution 2022-xx
December 15, 2022
BE IT RESOLVED, the Governing Board of Pioneer Community Energy, hereby finds, declares, and resolves as follows:
2 1. The above recitals are true and correct.
2. The Executive Director is directed to create a Special Fund for Programs and direct that beginning January 2023 a monthly allocation of $333,333 during Fiscal Year 2022-23 to the Special Fund be created for Programs and related administration and Program staffing cost.
3. The Executive Director is authorized to convert the CPAC recommendations into action.
4. The Resolution shall take effect immediately upon its adoption. 'IONEER
COMMUNITY ENERGY
Staff Report - Item 5
To: The Governing Board
From: Mark Riffey, Director of Public Affairs, Marketing and Programs Item 5: Approve Customer Bill Forgiveness for the Mosquito Fire Victims Date: 12/15/2022
RECOMMENDATION
Adopt Resolution authorizing the Executive Director to provide bill forgiveness on the Pioneer Community Energy generation portion of the customer bill for the months of September and October 2022 to Pioneer Community Energy ("Pioneer") customers whose residences were destroyed due to the 2022 Mosquito Fire ("Fire") in an aggregate amount of bill forgiveness not-to-exceed of $25,000.
AUDIT & FINANCE COMMITTEE RECOMMENDATION
At the December 8, 2022 Audit & Finance Committee meeting, the committee reviewed this item and voted unanimously to recommend this item to the Board for approval.
BACKGROUND
The Fire was considered one of the major incidents of the 2022 wildfire season in the State of California. The Fire began on September 6 and was not considered fully contained until October 22. The Fire impacted both Placer and El Dorado Counties and resulted in over 76,000 acres consumed, the evacuation of around 11,000 people, and over 90 structures destroyed or damaged.
ANALYSIS & DISCUSSION
Staff is requesting approval from the Governing Board ("Board") to provide bill forgiveness for those that lost their homes. The bill forgiveness would include all Pioneer charges for the months of September and October 2022. Pacific Gas & Electric ("PG&E") is working with Cal Fire to confirm which accounts need to be closed due to the Fire. Once the confirmation is complete, Pioneer will be informed and can start the process of providing bill forgiveness. Until this process is complete, staff does not know which accounts and therefore cannot confirm the amount of bill forgiveness, hence the need for an authorized limit. If the final tally exceeds $25,000, staff will come back to the Board for approval.
STRATEGIC PLAN
Local Engagement - Growing our relationship with our local residents and businesses.
Quality in Service - Ensuring the highest quality of customer service.
FISCAL IMPACT
The recommendation has a fiscal impact not-to-exceed of $25,000.
ATTACHMENTS
1. Resolution approving bill forgiveness for the months of September and October 2022 for Pioneer customers who lost their homes due to the Mosquito Fire for an aggregate not to exceed amount of $25,000.