Governing Board and Alternates
Chair: Alice Dowdin Calvillo, City of Auburn
Vice Chair: John Hidahl, County of El Dorado
Wes Heathcock, City of Colfax
Holly Andreatta, City of Lincoln
Amanda Cortez, Town of Loomis
Jim Holmes, County of Placer
Suzanne Jones, County of Placer
David Yarbrough, City of Placerville
Greg Janda, City of Rocklin
Alternate City of Auburn, Rachel Radell-Harris
Alternate City of Colfax, Kim Douglass
Alternate County of El Dorado, Lori Parlin
Alternate City of Lincoln, Dan Karleskint
Alternate Town of Loomis, Danny Cartwright
Alternate County of Placer, Bonnie Gore
Alternate City of Placerville, John Clerici
Alternate City of Rocklin, David Bass
This regular meeting will convene in person at the address printed above, be accessible on the Zoom platform at the following link: https://us06web.zoom.us/j/89967227073, and live streamed for viewing on the Pioneer website: https://pioneercommunityenergy.org/about-us/meetings-and-agendas/.
Members of the public may participate in person or by remote audio/visual access. Those who participate remotely and 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
March 16, 2023
Pioneer Community Energy Offices
2510 Warren Drive, Suite B, Rocklin, CA 95677
3:00 PM Regular Session
f/ONEER
COMMUNITY ENERGY
3:00 PM Call to Order
I. GENERAL ADMINISTRATIVE FUNCTION – PART I
A. CALL TO ORDER
1. Roll Call
B. AGENDA REVIEW
C. PRESENTATIONS BY THE PUBLIC ON MATTERS NOT ON THE AGENDA WITHIN THE
JURISDICTION OF THE BOARD
Persons may address the Board on items not on this agenda. Please limit comments to 3 minutes per person. According to State Law (the Brown Act), items must first be noticed on the agenda before any discussion or action. The Board is prohibited from discussing issues not on the agenda brought to them at this time.
II. CONSENT AGENDA
1) APPROVAL OF THE CONSENT AGENDA
All items on the Consent Agenda have been recommended for approval by the Executive Director. All Consent items will be approved by a single vote. Anyone may ask to address Consent items prior to the Board acting, and the item may be moved for discussion. a) ADMINISTRATION
Approve minutes of the February 16, 2023 regular meeting. (ECKERT) b) FINANCE & ADMINISTRATION
Receive Draft Financial Reports for January 2023. (KOEHN) 2) REGULAR AGENDA
2) LEGISLATIVE & REGULATORY AFFAIRS
Follow-up to Implementation of Senate Bill 1383 (ACTION- KANG) RECOMMENDATION: Inform Pioneer Community Energy staff whether their jurisdictions are interested in pursing procurement of organic waste materials with Pioneer as a facilitator. 3) LEGISLATIVE & REGULATORY AFFAIRS
Presentation on Legislative Updates (DISCUSSION- KANG)
RECOMMENDATION: Receive a presentation from Pioneer Community Energy on legislative updates.
4) ADMINISTRATION
2023 State of the Utility (DISCUSSION - ECKERT)
RECOMMENDATION: Receive report on the State of Pioneer Community Energy.
REGULAR SESSION
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 March 16, 2023 regular meeting of the Pioneer Community Energy Governing Board was posted and available for public review on March 10, 2023 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:
April 20, 2023 at 3:00 PM
Pioneer Community Energy Offices
2510 Warren Drive, Suite B
Rocklin, CA 95677
PIONEER COMMUNITY ENERGY
GOVERNING BOARD
February 16, 2023
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 February 16, 2023.
Pursuant to Government Code section 54953(e) and other applicable provisions of the Brown Act, the meeting was conducted via live streamed teleconference accessed and viewed at the following web link:
https://us06web.zoom.us/j/89967227073.
Roll Call
P A Agency Primary Member or Alternate Member
x City of Auburn Chair
Alice Dowdin Calvillo Rachel Radell-Harris
x County of El Dorado Vice Chair
John Hidahl Lori Parlin
x City of Colfax Wes Heathcock Kim Douglass
x City of Lincoln Holly Andreatta Dan Karleskint
x Town of Loomis Amanda Cortez Danny Cartwright
x County of Placer Jim Holmes Bonnie Gore
x County of Placer Suzanne Jones
x City of Placerville David Yarbrough John Clerici
x City of Rocklin Greg Janda David Bass
Chair Dowdin Calvillo presided over the meeting.
Committee Reports
Committee Chair Hidahl reported that on January 26, 2023, Director Dowdin Calvillo, Director Janda, and he attended the ad hoc Energy Procurement Review Committee. Pioneer staff and support including Executive Director, Chief Operating Officer, Commercial Counsel, General Counsel, Regulatory Counsel, Finance Director, and Technical Consultants also were in attendance.
The Committee reviewed, discussed, asked questions, and approved the Executive Director’s execution of a long-term battery storage contract with NRG that will enable Pioneer to be compliant with the Mid-Term Reliability’s 2023 requirements.
The Committee also reviewed and approved a compliance hedging strategy that would provide greater compliance certainty.
Agenda Review
Reviewed and made no revision to the meeting agenda for February 16, 2023.
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 December 15, 2022, and January 19, 2023, regular meetings. 1) Determined pursuant to Government Code Section 54953(e)(1) that, as a result of the COVID-19 state of emergency, conducting in-person public meetings would present imminent risks to the health or safety of attendees at the meetings of the Board of Directors and all other legislative bodies of Pioneer Community Energy (Pioneer), 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 be conducted by teleconferencing, pursuant to Government Code Section 54953(e), with an option for in-person attendance of up to five Directors.
Adopted Resolution 2023-6 approving Budget Policy.
Adopted Resolution 2023-7 and authorized the Executive Director to execute an agreement between Pioneer Community Energy and Frontier Energy for program services, from February 17, 2023, through December 31, 2023, for an amount not to exceed $119,197.
MOTION: Andreatta/Hidahl. Vote: 8:0:1
ROLL CALL: Andreatta, Cortez, Heathcock, Hidahl, Janda, Jones, Yarbrough, Dowdin Calvillo.
No/Abstain: None.
Absent: Holmes.
Entry No. 3
Affirmed existing committee members to the Energy Procurement Review Committee, the Audit & Finance Committee, and the Expansion Committee through January 2024.
Energy Procurement Review ad hoc Committee
John Hidahl
Alice Dowdin Calvillo
Greg Janda
Audit & Finance Committee
Greg Janda
Expansion ad hoc Committee
Dowdin Calvillo
Holmes
MOTION: Hidahl/Jones. Vote: 8:0:1.
ROLL CALL: Andreatta, Cortez, Heathcock, Hidahl, Holmes, Janda, Jones, Yarbrough, Dowdin Calvillo.
No/Abstain: None.
Absent: Holmes.
Director Holmes arrived prior to the Regular Agenda item 3, Appoint Board Committee Members.
Entry No. 4
Appointed Director Cortez to the ad hoc Energy Procurement Review Committee through January 2024.
Appointed Directors Hidahl, Andreatta, and Heathcock to the Audit & Finance Committee through January 2024.
Appointed Director Yarbrough to the ad hoc Energy Procurement Review Committee through January 2024.
MOTION: Dowdin Calvillo/Holmes. Vote: 9:0:0
ROLL CALL: Andreatta, Cortez, Heathcock, Hidahl, Holmes, Janda, Jones, Yarbrough, Dowdin Calvillo.
No/Abstain: None.
Absent: None.
Governing Board Minutes
February 16, 2023
Entry No. 5
1) Received a presentation from Pioneer Community Energy on SB 1383; and 2) provided direction to staff to pursue whether Pioneer can procure organic waste requirements on behalf of its member agencies.
The Board consensus was in support of staff to cautiously pursue the cost and process for procuring organic waste requirements on behalf of the member agencies, then return to the Board with more information.
Entry No. 6
Received and discussed a presentation with results from the 2022 Customer Satisfaction Survey and heard public comments regarding solar true ups, NEM process, and suggestion to produce YouTube tutorial videos.
Entry No. 7
Adopted Resolution 2023-8 approving Mid-Year Operating Budget Adjustments and the Job Descriptions and Salary Range for Customer Care Coordinator and Customer Care Manager.
MOTION: Holmes/Janda. Vote: 9:0:0.
ROLL CALL: Andreatta, Cortez, Heathcock, Hidahl, Holmes, Janda, Jones, Yarbrough, Dowdin Calvillo.
No/Abstain: None.
Absent: None.
Entry No. 8
Heard General Administration Functions, Part II.
A. Board Member Communications
Chair Dowdin Calvillo commented that the Auburn City Council had adopted Green100 100% renewable option by unanimous vote and how it has helped in meeting compliance for their city; and encouraged the other Member Agencies to consider moving to Green100 as well.
Chair Dowdin Calvillo also announced that 2023 is the five-year anniversary of Pioneer Community Energy and there are plans for a celebration in the summer.
Vice Chair Hidahl reported that a remote public location for Pioneer Board meetings has been established at the El Dorado County Board of Supervisors building which allows for a regional remote location.
Vice Chair Hidahl also commended Pioneer staff for being extremely helpful to inform the public regarding EPSS/PSPS events, and commented that communication is a community benefit.
B. Executive Director Communications
Executive Director Eckert reported that Alexia Retallack will be coordinating the five-year anniversary celebration; that staff is working with Placer County to establish a remote public location for Pioneer Board meetings; welcomed the newly appointed Members to the Pioneer Board; and how Pioneer is looking forward to additional Members from Grass Valley and Nevada City to be joining the Board soon.
C. Informational Items
Received the Glossary of Terms.
D. Adjournment
The meeting adjourned at 4:53 PM
ATTEST:
Minutes approved as presented by a majority vote of
the Governing Board on March 16, 2023.
Teresa Willock, Board Secretary
Governing Board Minutes
February 16, 2023
Staff Report – Item 1b
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1b: Receive Draft Financial Reports for January 2023 Date: 3/16/2023
ACTION REQUESTED
Receive draft Financial Reports for January 2023.
BACKGROUND
The Year-To-Date (YTD) financial reports are produced by Maher Accountancy for Board member and management review. Although these reports are unaudited, they provide the most up-to-date financial data for Pioneer Community Energy. The mPOWER program accepted its last application August 2021 and mPOWER activity is now limited to the administering the outstanding mPOWER Bonds. Financials for the mPOWER program will be included in the audited year end reports. For January 2023, 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.
Fiscal Year 2022-23 Midyear Operating Budget Updates
At the February 16, 2023 Board meeting, the Board approved adjustments to the FY 2022-23 CCA operating budget to include the impact of Pioneer’s increased power costs. These updates will be reflected in the February 2023 monthly financials presented at the April Board meeting. Monthly allocations of internal transfers will also be updated in the February financials.
STRATEGIC PLAN
Strategic Priority 5: Financial Stability & Strategic Growth
FISCAL IMPACT
The YTD change in net position through seven months of the fiscal year is $14.8 million.
ATTACHMENTS
1. Financial Reports through January 31, 2023
fJONEER
COMMUNITY ENERGY
MAHER
ACCOUNTANCY
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 January 31, 2023, and the related statement of revenues, expenses, and changes in net position for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America in these interim financial statements. Pioneer Community Energy's annual audited financial statements include the note disclosures and statement of cash flows omitted from these interim statements. If the omitted disclosures and the statement of cash flows 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
March 7, 2023
1101 Fifth Avenue , Suite 200 San Rafael , CA 94901 415 459 1249 mahercpa .com
PIONEER COMMUNITY ENERGY
CCAFUND
STATEMENT OF NET POSITION
As of January 31, 2023
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
Net investment ( deficit) in capital assets
Unrestricted net position
Total net position
See accountants' compilation report.
CCAFund
$ 13,242,758
23,239,388
23,822,088
9,570,012
248,250
26,667
79,829
6,283,818
76,512,810
1,498,582
1,498,582
78,011,392
16,261,382
780,673
399,924
28,527
393,756
644,754
72,758
18,581,774
6,873,323
1,598,177
8,471,500
27,053,274
(172,353)
51,130,471
$ 50,958,118
2 PIONEER COMMUNITY ENERGY
CCAFUND
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Seven Months Ended January 31, 2023
OPERATING REVENUES
Electricity sales, net
Total operating revenues
OPERA TING EXPENSES
Cost of electricity
Contract services
Staff compensation
Other operating expenses
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Grant income
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
$ 125,658,056
125,658,056
105,895,322
3,420,155
1,713,253
398,097
111,426,827
14,231,229
1,041,957
(28,682)
(430,125)
583,150
14,814,379
36,143,739
$ 50,958,118
3 'IONEER
COMMUNITY ENERGY
Participation Rates - January 2023
AUBURN INC 86.03% 85.91% 85.75%
COLFAX INC 89.30% 89.04% 88.72%
LINCOLN INC 83.51% 83.48% 83.39% LOOMIS INC 89.07% 89.12% 88.99% PLACERVILLE INC 88.26% 88.60% 86.58%
ROCKLIN INC 91.57% 91.57% 91.78%
UNINC EL DORADO CO 83.00% 83.11% 83.08%
UNINC PLACER CO 85.64% 85.58% 85.96%
Grand Total 85.52% 85.55% 85.55%
4 MAHER
A(COUNTANC.Y
ACCOUNTANTS' COMPILATION REPORT
Board of Directors
Pioneer Community Energy
Management is responsible for the accompanying special purpose statement for the budgetary comparison schedule CCA Program of Pioneer Community Energy, a California Joint Powers Authority, for the period ended January 31, 2023, 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 AI CPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of Pioneer Community Energy.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
Pioneer Community Energy's annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user's conclusions about Pioneer Community Energy's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to Pioneer Community Energy because we performed certain accounting services that impaired our independence.
Hdv,,A~
San Rafael, CA
March 7, 2023
1101 Fifth Avenue , Suite 200 San Rafael, CA 94901 415 459 1249 rnahercpa,com 5
PIONEER COMMUNITY ENERGY
CCAFUND
BUDGETARY COMPARISON SCHEDULE
Seven Months Ended January 31, 2023
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 $ 122,860,164 $ 128,378,664 $ 5,518,500 104% $ 199,630,000 $ 71,251,336 Green I 00 Sales 30,039 16,162 (13,877) 54% 48,000 31,838 Congestion Revenue Rights 1,877,408 5,553,146 3,675,738 296% 3,000,000 (2,553,146) Less Uncollectible Accounts (1,228,902) (1,694,812) (465,910) 138% (1,996,780) (301,968) Total Operating Revenues 123,538,709 132,253,160 8,714,451 200,681,220 68,428,060
ENERGY EXPENSES
Power Supply 96,294,916 111,448,468 15,153,552 116% 149,977,000 38,528,532 OPERA TING MARGIN 27,243,793 20,804,692 (6,439,101) 50,704,220 29,899,529
OPERA TING EXPENSES
Administration
Compensation 390,314 312,601 (77,713) 80% 626,252 313,651 Contract services 429,106 65,049 (364,057) 15% 546,325 481,276 Operating expenses 347,944 278,941 (69,003) 80% 541,225 262,284 Total Administration expenses 1,167,364 656,590 (510,773) 56% 1,713,802 1,057,212 Finance
Compensation 449,893 429,914 (I 9,979) 96% 760,530 330,617 Contract services 353,558 280,714 (72,844) 79% 553,350 272,636 Operating expenses 196,490 186,264 (I 0,226) 95% 278,983 92,719 Total Finance expenses 999,941 896,892 (103,049) 90% 1,592,863 695,971 Power Procurement
Compensation 277,100 344,703 67,603 124% 617,886 273,183 Contract services 1,101,915 987,274 (114,641) 90% 1,485,426 498,152 Operating expenses 25,679 12,318 (13,361) 48% 35,450 23,132 Total Power Procurement expense, 1,404,695 1,344,295 (60,399) 96% 2,138,762 794,467 Customer Care
Compensation 209,641 235,498 25,856 112% 441,957 206,459 Contract services 1,728,757 1,517,227 (211,530) 88% 2,935,012 1,417,785 Operating expenses 337 517 180 154% 10,863 10,346
Total Customer Care expenses 1,938,735 1,753,242 (185,493) 90% 3,387,832 1,634,590 Marketing & Communications
Compensation 44,226 65,220 20,994 147% 154,388 89,168
Contract services 308,945 267,293 (41,652) 87% 556,240 288,948 Operating expenses 306,779 109,277 (197,503) 36% 408,050 298,773 Total Marketing expenses 659,950 441,789 (218,161) 67% 1,118,678 676,889 Legislative & Regulatory
Compensation 268 879 26:'i 011 (1,84:'i) 99% 496,649 211 616 Contract services 211,233 121,870 (89,363) 58% 353,808 231,938 Operating expenses 3,063 893 (2,169) 29% 5,250 4,357
Total Legislative expense, 483,174 387,796 (95,378) 80% 855,707 467,911 Programs
Compensation 71,354 48,612 (22,742) 68% 122,320 73,708
Contract services 67,455 (67,455) 0% 97,000 97,000
Operating expenses 5,042 1,040 (4,002) 21% 6,500 5,460
Total Programs expenses 143,850 49,652 (94,198) 35% 225,820 176,168 Total Operating Expenses 6,797,708 5,530,257 (1,267,451) 81% 11,033,464 5,503,207
NON-OPERA TING REVENUES (EXPENSES)
Investment gains (losses) 43,750 (28,682) (72,432) -66% 75,000 103,682 Term Loan Debt Service (554,169) (534,824) 19,345 97% (950,000) (415,176) Additional Term Loan Principal (2, I 00,000) (2,100,000) (2, I 00,000) Line/Letter of Credit Fees (187,500) (171,287) 16,213 91% (250,000) (78,713) Financial Security Requirement (356,000) 356,000 0% (356,000) (356,000) Nonoperating revenues (expenses), ne1 (3,153,919) (2,834,793) 319,126 (3,581,000) (746,207) Total Expenses (Energy, Operating, Non-Operating) 106,246,543 119,813,518 13,566,975 164,591,464 44,777,946 Contribution to/(from) Reserves $ 17,292,166 $ 12,439,641 $ (4,852,524) $ 36,089,756 $ 23,650,115
Staff Report – Item 2
To: The Governing Board
From: Kirstin Kolpitcke, Legislative and Regulatory Manager Item 2: Follow-up to Implementation of Senate Bill (SB) 1383 Date: 3/16/2023
ACTION REQUIRED
Pioneer Community Energy (Pioneer) staff (Staff) requests that its Board members inform Pioneer whether their jurisdictions are interested in pursuing procurement of organic waste materials with Pioneer as a facilitator by March 16, 2023.
RECOMMENDATION
Staff has no recommendation with this report.
BACKGROUND
SB 1383 requires local jurisdictions to procure an annual target amount of organic waste products. Pioneer’s Board members requested Staff to determine whether Pioneer’s procurement of biomass energy qualifies for and can count towards their SB 1383 compliance requirements. Staff provided answers in the February 16, 2023, Board meeting, and were tasked to provide options where Staff could assist in that endeavor. Staff has since had numerous conversations with CalRecycle and Greenleaf Power (Greenleaf) to come up with two options that the Board may pursue.
ANALYSIS & DISCUSSION
Proposal
This proposal relates only to the procurement of recycled organic products by local jurisdictions as required by SB 1383 and does not satisfy any other local jurisdiction requirements under SB 1383, such as the collection and recycling component, food recovery mandate, or capacity planning needs.
Pioneer staff looked at two approaches for the procurement requirements of organic waste products. The first is whether Pioneer could procure organic waste products on behalf of its local jurisdictions. SB 1383 regulations authorize jurisdictions to designate responsibilities through agreements with other jurisdictions, entities, or regional agencies. However, in order for Pioneer to qualify as a “regional agency,” a new Joint Powers Authority (JPA) must be formed (or the current JPA Agreement needs to be amended) for purposes of handling waste management, and CalRecycle would need to approve the JPA. This approach is not recommended because it is not Pioneer’s intent to enter the waste management business on any larger scope than contemplated here, and getting an amendment to Pioneer’s current JPA would be extremely time-consuming since it requires agreement by all members.
In the second approach, Pioneer would act in an advisory role to facilitate and negotiate the price and contract with Greenleaf on behalf of its jurisdictions and then coordinate with each agency to put the contract with Greenleaf on each individual council’s agenda for approval. The benefits of the this approach include 1) Pioneer having greater bargaining strength representing multiple jurisdictions and possibly better terms than jurisdictions on their own, 2) Pioneer can save member agencies significant staff time by negotiating the agreement on behalf of multiple parties, and 3) this approach allows Pioneer to assist its members without any liability for compliance (compliance would be largely handled by Greenleaf with the exception of reporting fJONEER
COMMUNITY ENERGY
Agenda Item: 2 Agenda Date: 3/16/2023
that require direct input from the Jurisdictions, wherein Greenleaf would provide that data to submit). This is the recommended approach.
Agenda Item: 2 Agenda Date: 3/16/2023
Estimated Targets and Costs for 2023
The maximum tons procurable through biomass attributes is calculated by taking the energy usage in kwh of the municipality divided by 650kwh (the CalRecycle equivalent of 1 ton of biomass attribute).
Estimated Targets and Costs for 2024
*Any targets that exceed the Max Tons Procurable must be met through the purchase of either compost or mulch.
2022 Energy Max. Tons 2023 Target Cost
Usage kWh kWh Per Ton Procurable in Tons Price Per Ton 2023 Placerville 2,612,315 650 4,019 261 $ 32.50 $8,492
E.D. County 4,281 ,309 650 6,587 3,866 $ 32.50 $125,639 Auburn (w/o OMI) 1,214,993 650 1,869 347 $ 32.50 $11 ,261 Auburn (with OMI) 2,198,649 650 3,383 347 $ 32 50 $11 ,261 Colfax 876,129 650 1,348 52 $ 32.50 $1 ,697
Lincoln 3,821 ,239 650 5,879 1,191 $ 32.50 $38,708
Loomis 218,204 650 336 164 $ 32.50 $5,314
Rocklin 4,818,077 650 7,412 1,691 $ 32.50 $54,971
Placer County 7,903,404 650 12,159 2,751 $ 32.50 $89,398 $335,478
2022 Energy Max. Tons 2024 Target Cost Unmet Target
Usage kWh kWh Per Ton Procurable in Tons Price Per Ton 2024 in Tons Placerville 2,612,315 650 4,019 566 $ 32.50 $18,400
E.D. County * 4,281 ,309 650 6,587 8,376 $ 32.50 $214,065 1,789 Auburn (w/o OMI) 1,214,993 650 1,869 751 $ 32.50 $24,399 Auburn (with OMI) 2,198,649 650 3,383 751 $ 32.50 $24,399 Colfax 876,129 650 1,348 113 $ 32.50 $3,676
Lincoln 3,821,239 650 5,879 2,581 $ 32.50 $83,883
Loomis * 218,204 650 336 354 $ 32.50 $10,910 18
Rocklin 4,818,077 650 7,412 3,665 $ 32.50 $119,103
Placer County 7,903,404 650 12,159 5,960 $ 32.50 $193,695 $668,131
Agenda Item: 2 Agenda Date: 3/16/2023
Estimated Targets and Costs for 2025
*Any targets that exceed the Max Tons Procurable must be met through the purchase of either compost or mulch.
Cost Comparison
Purchase Biomass Attributes
Greenleaf Power is offering SB 1383 compliant biomass attributes for $32.50 per ton. Rocklin’s estimated 2023 target is 1,691 tons, so therefore the total estimated cost for Rocklin to procure biomass attributes is $54,971, plus an administrative fee to recover out of pocket attorney’s costs related to negotiating the contract.
Purchase Compost
Western Placer Waste Management Authority in Lincoln quoted $21 per ton for SB 1383 compliant compost, so the cost for Rocklin to procure its target 1,691 tons of compost is $35,511. For transport of the compost, JT Trucking quoted $300 a trip with a 24-ton capacity truck for the 12 miles between Lincoln and Pioneer’s office.
It would take 71 trips to haul 1,691 tons at $300 a trip for a total of $21,300. The total estimated cost for Rocklin to procure compost is approximately $56,811. Additionally, Rocklin would need to figure out what to do with 1,691 tons of compost.
Considerations
• The price of compost and mulch vary significantly based upon the proximity to the product, the hauler, and operational costs.
• Greenleaf is proposing contracts up to 5-years.
• Jurisdictions’ procurement targets will be updated at the beginning of 2027 to reflect population changes.
• If jurisdictions have SB 1383 local assistance grant money, they should contact their grant manager regarding using the funds to pay for the organic waste procurement. • Greenleaf has indicated that no contracts have been signed yet, but they have had conversations with several large jurisdictions that could account for all their attributes. • Some jurisdictions may be able to contracts with Greenleaf without bringing the issue before their agency if the contract is less than $50,000.
• Pioneer staff will be available to assist in presentations to your Council(s) and/or Board(s) as necessary.
2022Energy Max. Tons 2025Target Cost Unmet Target
Usage kWh kWh Per Ton Procurable in Tons Price Per Ton 2025 in Tons Placerville 2,612,315 650 4,019 871 $ 32.50 $28,308
E.D. County * 4,281 ,309 650 6,587 12,886 $ 32.50 $214,065 6,299 Auburn (w/o OMI) 1,214,993 650 1,869 1,155 $ 32.50 $37,538 Auburn (with OMI) 2,198,649 650 3,383 1,155 $ 32.50 $37,538 Colfax 876,129 650 1,348 174 $ 32.50 $5,655
Lincoln 3,821 ,239 650 5,879 3,970 $ 32.50 $129,025
Loomis* 218,204 650 336 545 $ 32.50 $10,910 209
Rocklin 4,818,077 650 7,412 5,638 $ 32.50 $183,235
Placer County 7,903,404 650 12,159 5,960 $ 32.50 $193,700 $802,436
Agenda Item: 2 Agenda Date: 3/16/2023
• Annual reporting requirements for 2022 are due by August 1, 2023.
Timeline
Time is of the essence. Greenleaf is having discussions with other jurisdictions that are large enough to account for all their attributes. Staff requests that its Board members inform Pioneer whether their jurisdictions are interested in pursuing procurement of organic waste materials with Pioneer as a facilitator by March 16, 2023.
The goal is to get formal approval from each interested jurisdiction by April 15 and execute the contract shortly thereafter.
FISCAL IMPACT
Pioneer would charge an administrative fee to recover out of pocket attorney’s costs related to negotiating the contract. General Counsel has estimated costs to be between $10,000 at the low end and $25,000 at the high end. This cost would be spread amongst all participating jurisdictions based on their load percentage. 2023 Procurement Percentage of Es t im at e d Fe e Es t im at e d Fe e Target Total $ 10 ,0 0 0 $ 2 5 ,0 0 0
P lace rville 261 2.5 3 % $253 $632
El Dorado Count y 3 ,8 6 6 3 7.4 5 % 3 ,74 5 $9 ,3 6 3
Auburn 347 3 .3 6 % $336 $840
Colfax 52 0 .5 0 % $50 $125
Lincoln 1,19 1 11.5 4 % $1,15 4 $2,8 8 5
Loom is 16 4 1.5 8 % $15 8 $395
Rocklin 1,6 9 1 16 .3 8 % $1,6 3 8 $4 ,0 9 5
P lace r Count y 2,75 1 26 .6 5 % $2,6 6 5 $6 ,6 6 3
Totals 10 3 23 9 9 .9 9 % $9 ,9 9 9 $24 ,9 9 8
ATTACHMENTS
None.
Staff Report – Item 3
To: The Governing Board
From: Kirstin Kolpitcke/Chris Micheli
Item 3: Presentation on Legislative Updates
Date: 3/16/2023
RECOMMENDATION
Receive a presentation from Pioneer Community Energy (Pioneer) on legislative updates.
BACKGROUND
Chris Micheli is a Principal with the Sacramento governmental relations firm of Aprea & Micheli, Inc. He is an attorney by training, having worked as General Counsel to the California Manufacturers Association prior to becoming a contract lobbyist. He has written several books on the California Legislature, its legislative process, state government, and lobbying. He serves as an Adjunct Professor at McGeorge School of Law, as well as a Lecturer in Law at UC Davis King Hall School of Law. He was hired by Pioneer in November 2022 to help shepherd our biomass legislative proposals through the legislative process.
Pioneer lobbyists will discuss the Legislature since the election in November, talk about the bill introduction deadline that just occurred, review the Pioneer’s legislative representation and changes to the Energy Policy Committees in the Senate and Assembly, and finish with the legislative calendar.
ANALYSIS & DISCUSSION
Overview of the Legislature
California had a General Election on November 8, 2022. Not unlike some of our local races, the Legislature had some of the closest election results in history. Pioneer staff will discuss the outcome of the election, the makeup of the Legislature, who the newly elected officials are, and who makes up the Leadership. 2023 Bill Introductions
In addition, February 17, 2023, marked the deadline for Legislators to introduce legislative proposals. There are 1,751 Assembly Bills and 881 Senate Bills for a total of 2,632 bills. This is the highest number of bills introduced in over a decade!
Pioneer’s Legislative Representatives
Pioneer’s territory saw a significant number of changes in its Legislative Delegation. In the Senate, Pioneer is still represented by Senator Brian Dahle. Senator Nielsen, who was an institution in this area, was termed out and replaced by a moderate Democrat, Senator Marie Alvarado-Gil. Lastly, Senator Roger Niello represents the 6th Senate District, which includes Auburn, Lincoln, Loomis, Rocklin, as well as areas outside Pioneer’s jurisdiction. Senator Niello previously served as an Assembly Member from 2004-2010.
In the Assembly, Pioneer is represented by Assembly Member Megan Dahle. Former Assembly Member Kevin Kiley was elected to Congress and in his absence, Joe Patterson was elected to the Assembly.
Changes to the Energy Policy Committees
With the changes in the makeup of the Legislature, all the committees have been reassigned and vacancies filled. New members to the Assembly Utilities and Energy Committee include- Rebecca Bauer-Kahan (D-Orinda), fJONEER
COMMUNITY ENERGY
Agenda Item: 3 Agenda Date: 3/16/2023
Damon Connolly (D-San Rafael), Pilar Schiavo (D-Santa Clarita), and Greg Wallis (R-Riverside County). New members to the Senate Utilities, Energy, and Communications Committee include- Angelique Ashby (D-Sacramento), Anna Caballero (D- Merced), Maria Elena Durazo (D- Los Angeles), Josh Newman (D- Fullerton), Kelly Seyarto (R-Murrieta), Nancy Skinner (D-Berkeley), and Scott Wilk (R-Santa Clarita).
Legislative Calendar
2023 marks just the beginning of a 2-year legislative session. There are many deadlines ahead such as the deadline to amend spot bills, the deadline to hear bills in the policy and fiscal committees, the deadline to have bills pass the house of origin, the May Revise, the deadline to pass the budget, the deadline to send bills to the Governor, and the deadline for the Governor to sign or veto bills.
High Priority Bills
Pioneer’s Legislative Platform prioritizes the support of legislation which allows it to develop and procure local energy generation resources to meet the needs of its electric customers, particularly biomass. And other base load resources such as waste to energy.
Pioneer is the sponsor of SB 488 (Senator Alvarado-Gil). This bill would expand the existing Bio-RAM program to CCAs to ensure the procurement of 125 MW of biomass energy as per the legislation in 2016 (SB 859).
Pioneer will be drafting a letter of support for this legislation. Senator Dahle has agreed to co-author this legislation, making it bipartisan as well as a district bill.
AB 625 (Assembly Member Aguiar-Curry) has agreed to add Pioneer’s language to extend the sunset date of the BioMAT program until the 250MW has been procured. The author is the sponsor of the bill which contains additional biomass-related provisions, and Pioneer will be supporting this provision in AB 625.
Pioneer will be drafting letters of support for both of these bills, but we are requesting Board Members seek support for these two bills so we can add jurisdictions to the coalition of support.
FISCAL IMPACT
None.
ATTACHMENTS
None.
Staff Report – Item 4
To: The Governing Board
From: Don Eckert, Executive Director
Item 4: State of the Utility
Date: 3/16/2023
RECOMMENDATION
Receive a report on the State of Pioneer Community Energy (“Pioneer”).
BACKGROUND
The State of the Utility report is an annual exercise presented to the Board during the first quarter of the calendar year. The purpose of the report is to provide progress towards our strategic goals in departments or initiatives of Pioneer including:
1. Where we’ve been – Highlights of accomplishments in 2022.
2. Where we are now – Current status.
3. Where we’re going – Expected outcomes by the end of 2023.
ANALYSIS & DISCUSSION
Affordability
• Where we’ve been – Set rates that produced $19 million of utility bill savings for our customers while contributing to reserves.
• Where are we now – Set rates that supports a 19.5% discount to PG&E generation rates for customers on the 2021 Power Cost Indifference Adjustment (“PCIA”) vintage (i.e., El Dorado County ratepayers) and a 15% discount to PG&E generation rates for customers on the 2017 PCIA vintage (i.e., most of Placer County ratepayers) generating $55 million in utility bill savings in 2023. • Where we’re going – By setting rates that supports contributions to reserves while maintaining competitive operating costs places Pioneer in a strong position to continue ratepayer savings in 2024.
Expansion
• Where we’ve been – Planted the seeds of interest with Nevada and Yuba County while completing the expansion process with Nevada City and Grass Valley resulting in a application with the California Public Utilities Commission (“CPUC”) to begin service in January 2024. • Where are we now – Received certification from the CPUC to serve Nevada City and Grass Valley which prompts both power procurement and public outreach efforts. In the recruitment process for a Community Outreach Manager focused on building upon the relationships formed in 2022. • Where we’re going – At a minimum complete the process for expansion into Unincorporated Nevada County and utilize our competitive rates position to recruit further expansions.
Finance
• Where we’ve been – Obtained a $20 million Line of Credit that provides liquidity flexibility. Applied and received $2 million from the California Arrearage Payment Program (“CAPP”) for bill forgiveness. Closed the prepay transaction that will result in $2.8 million annually in reduced power supply costs over the next seven years. Received a perfect financial audit.
fJONEER
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Agenda Item: 4 Agenda Date: 3/16/2023
• Where are we now – Applied another $1 million from CAPP to help our ratepayers with bill forgiveness.
Prepare and submit the FY 2023-24 budget. Work through the details of the prepay bond process with the banks and power suppliers.
• Where we’re going – Continue to build towards our reserves target and if not obtain, at the very least begin conversations with the rating agencies to receive an investment grade rating that will help expand our power supply options and achieve better pricing.
Human Resources
• Where we’ve been – Conducted an employee survey and compensation study and improved benefits through the budget process. The goals of attract and retain employees are being achieved with no employees leaving Pioneer in 2022 and continued to hire great talent. • Where are we now – Conducting employee survey on benefits and build benefit enhancements into the FY 2023-24 budget process.
• Where we’re going – Continue to make Pioneer a great place to work.
Power Supply
• Where we’ve been – Concluded negotiations on a long-term power purchase agreement (PPA) obtaining solar + storage that diversifies the portfolio while providing grid reliability. Completed the two-year Integrated Resource Plan to the CPUC that updates our plan to achieve the states goals for greenhouse gas reduction. Began negotiations with project developers on biomass in anticipation of AB843 implementation from the CPUC.
• Where are we now – Continue to procure the least cost-best fit options in power procurement to maintain our rate competitiveness. Maintain compliance with our internal energy risk management policy while navigating the ever-changing rules regarding renewable portfolio standards, resource adequacy and mid-term reliability.
• Where we’re going – As pressure continues on power supply prices due to commodity volatility and the capacity market is out of balance in supply and demand, staff will be evaluating more long-term PPAs to stabilize the portfolio with both energy and capacity needs. Have a ground-breaking ceremony on a biomass project by the end of the year or early 2024.
Legislative and Regulatory Affairs
• Where we’ve been – Lead the effort to pass AB843 that allows Community Choice Aggregators to participate in the BioMAT program that encourages biomass project development in our territory. Hired a Legislative and Regulatory Affairs Manager. Contracted a lobbyist specifically focused on Pioneer issues.
• Where are we now – Continue to press on the CPUC to approve Pioneer in the BioMAT program. Provide solutions for our member agencies with SB1383 compliance. Made contact with the legislators in our service territory. Represent our ratepayers on issues such as Fast Trips. • Where we’re going – Negotiate with GreenLeaf and CalRecycle for SB1383 compliance. Build on relationships with the legislators. Protect our ratepayers from adverse legislation and regulatory issues.
Public Outreach
• Where we’ve been – Overhauled the website in 2022. Built relationships with the key accounts resulting in large-load customers returning. Established a presence in the service territory. • Where are we now – Focused on being present in the community. Hired a customer care coordinator to improve customer service. Negotiating new contract with data management consultant to enhance the data we need to meet our customers needs. Engaged in messaging blitz through all communication channels to reach our customers about the benefits of Pioneer. • Where we’re going – Ramp up public outreach efforts in the summer for our expansion communities.
Continue to build trust within our current service territory through communication and presence.
Improve the participation rate.
Agenda Item: 4 Agenda Date: 3/16/2023
Programs
• Where we’ve been – Facilitated the Community Programs Advisory Committee (“CPAC”) throughout the year resulting in a report to the Board in December 2022. • Where are we now – Launched the ad-hoc Community Advisory Committee to pick up where the CPAC ended with the purpose of selecting specific programs to scope and recommend to the Board as part of the Fiscal Year 2023-24 budget process. Staff is also working with a consultant to apply for Public Purpose Program funding.
• Where we’re going – Launch three (3) programs before the end of the year.
STRATEGIC PLAN
The report shows the progress and the plan of work to be done to achieve the goals of the strategic plan.
FISCAL IMPACT
There is no fiscal impact with the recommendation.
ATTACHMENTS
There are no attachments with this report.
Staff Report – Item IV-B
To: The Governing Board
From: Don Eckert, Executive Director
Item IV-B: Executive Director Report
Date: 3/16/2023
REPORT
Personnel
Nicole Sena joined the team on February 27th as our Customer Care Coordinator. Nicole brings six years of experience in the solar industry as a project coordinator and worked her way to project manager. Her experience has been focused on residential and agricultural systems. In her free time, she enjoys gardening, cooking, spending time outdoors with her family, and pursuing her passion of watercolor and mural painting.
The application window closed at the end of February for the Community Outreach Manager position and the review process has begun. We have also posted an intern position with Sierra College and William Jessup University. Currently Pioneer has fifteen of seventeen positions filled.
Executive Director Agreements Executed
The following agreements have been executed by the Executive Director, consistent with the authority delegated by the Board:
• Hutchinson & Bloodgood, LLC, Information Technology Audit Service, not-to-exceed $13,563, term is until the completion of the audit. This is an annual audit and was included in the budget.
Expansion Update
The California Public Utilities Commission (“CPUC”) certified Pioneer’s Addendum No. 2 to the Implementation Plan and Statement of Intent (see attachment 4). This notification makes Amendment No. 5 to Pioneer’s Joint Powers Agreement effective and allows a representative from Nevada City and Grass Valley to join the Board with electric service expected in January 2024.
The City Managers of our new members have been notified and will work with their respective councils to select a representative to join our Board with an expected start date in April or May. Staff also conducted a webinar (weather did not permit in-person) introducing Pioneer to the citizens of each city in early March. Public outreach will ramp up this summer.
Pioneer Represented at CPUC Workshop Regarding Fast-Trips In a great win for Pioneer and other communities, the CPUC responded to the joint effort led by a few CCAs (including Pioneer, and a few local governments) to open an expedited phase of the De-Energization Rulemaking. The joint effort encourages the CPUC to consider time-sensitive rules to ensure that the Investor-Owned Utilities Fast Trip programs are designed and implemented in a manner that protects public health, safety, and welfare. The CPUC is holding a public workshop to identify issues to help them form a proposed scope and actions on the emerging challenges associated with reliability, including consideration of fJONEER
COMMUNITY ENERGY
Agenda Item: IV-B Agenda Date: 3/16/2023
rules for governing the IOUs’ Fast Trip Programs. The workshop will be held on March 17 from 9am-2pm, and Pioneer will be speaking at this workshop.
In the CPUC’s notice for the workshop, they acknowledged that there are current and emerging risks that have the potential to increase the frequency and duration of power outages and that a reexamination of the current set of rules and practices related to promoting public safety and reliability may be needed. The CPUC also points out that our Joint Motion correctly highlights the immense importance of looking at the IOUs’ Fast Trip programs and that these electrical system outages, regardless of the cause, pose public, health, safety, and welfare risks. See Attachment 5 for Pioneer’s contribution to the discussion.
Pacific Gas & Electric (“PG&E”) Rate Change
PG&E has increased rates by 4% effective March 1st for all customers to support their poles and wires (“T&D”).
This affects Pioneer and non-Pioneer customers equally. However, the Pioneer savings over PG&E has not changed.
On a positive note regarding rates, the East Bay Times reported that after three months of higher-than-normal natural gas market prices driving up energy bills, PG&E announced on March 6th that customers can expect, on average, a 75 percent decline in their March natural gas bills.
According to the news release, the decrease is due in part to PG&E distributing the state’s April Climate Credit one month earlier than in previous years. Even without the Climate Credit, March natural gas bills, on average, would decrease 40 percent because of a significant drop in the market prices PG&E pays to buy natural gas to serve its customers, and customers using less gas as colder temperatures moderate.
Executive Director Power Supply Contracts Executed
The following agreements have been executed by the Executive Director, consistent with the authority delegated by the Board:
Presentations and Relevant Meetings attended by the Executive Director
1. Participated n CalCCA Weekly/Monthly Board meetings
2. Attended retirement celebration for El Dorado County’s CEO
3. Participated in discussions with representatives from CalRecycle
ATTACHMENTS
1. Agenda Planning Document
2. Monthly Legislative and Regulatory Affairs Report
3. Monthly Marketing and Public Outreach Report
4. Certification Letter from the CPUC
5. Joint Parties Fast Trip Presentation – March 17, 2023 Counterparty Name
Execution
Date Type Product Start Date End Date Notional Value
Sentinel Energy Center, LLC I I I 2/2/2023 Buy Resource Adequancy - Local I I I 1/1/2024 12/31/2027 23,744,717 $ Agenda Planning Document – Pioneer Community Energy Updated 3/10/2023 C:\Users\TeresaWillock\Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates
BOARD OF
DIRECTORS
MARCH 16, 2023
3:00 PM
(Post Agenda: MAR 10)
APRIL 20, 2023
3:00 PM
(Post Agenda: APR 14)
MAY 18, 2023
3:00 PM
(Post Agenda: MAY 12)
IN THE FUTURE
(MAY) Special Meeting- Board Orientation
(2023) Special Meeting- CAISO facility tour
Closed Session
2:15 PM
Conference with Legal Counsel - Existing
Litigation - GC §54956.9(d)(1)
General Function I Agenda Review Agenda Review Agenda Review Consent
1a
Minutes for Approval
FEB 16, 2023
Minutes for Approval
MAR 16, 2023
Minutes for Approval
APR 20, 2023
1b Receive Draft Financials: JAN 2023
(Koehn)
Receive Draft Financials: FEB 2023
(Koehn)
Receive Draft Financials: MAR 2023
(Koehn)
1c
1d
1e
1f
Regular
2 SB 1383 (Action-Kang)
Preliminary direction & next step:
deadline for Member Agency
decisions
Outreach Efforts summary (Discussion-Riffey)Update on Prepay Transaction (Discussion-Eckert)
Customer Participation (Riffey)
Updates to Pioneer’s Brand (Riffey)
3 Contract Lobbyist and Updates on
Sponsored Bills (Discussion-Kang)
presenter: Chris Micheli
Legislative Platform (Action-Kang) Overview of proposed FY 23-24 Budget (Discussion-Koehn)
Contract Renewal -Calpine Data
Management
4 2023 State of the Utility (Discussion-Eckert)
Expansion Policy discussion
(Discussion-Eckert)
RES-BCT rate
5 Update on Energy Procurement
Markets (Discussion-Kang)
Green75 – new hybrid renewable rate
(Action-Eckert/Kang)
6 7 (DEC) New Member Reserves Target –
Nevada City & Grass Valley
8 (DEC) Public Hearing - Rates 2024
General Function II
IV-B
Executive Director’s Report
Reports: Leg/Reg; Community Engagement;
NEM 3.0 reminder; bio for New Hire
(Nichol);
Executive Director’s Report
Reports: Leg/Reg; Community Engagement;
Strategic Plan objectives update;
Executive Director’s Report
Reports: Leg/Reg; Community Engagement;
Executive Director Report - Quarterly
Update re: Strategic Plan objectives
JAN – APR – JULY - OCT
IV-C Informational Items
Glossary of Terms
Informational Items
Glossary of Terms
Informational Items
Glossary of Terms
Agenda Planning Document – Pioneer Community Energy Updated 3/10/2023 C:\Users\TeresaWillock\Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates
AUDIT/FINANCE COMMITTEE
DATE TBD
early May 2023 DATE IN THE FUTURE
Greg Janda, Chair
Holly Andreatta
Wes Heathcock
John Hidahl
-selection of officers
-FY 23-24 budget preview
(MAR) Selection of Officers - 1st meeting convened following Board filling vacancies and affirming committee members.
ENERGY PROCUREMENT REVIEW
AD HOC COMMITTEE TBD DATE IN THE FUTURE
John Hidahl, Chair
Greg Janda, Vice Chair
Amanda Cortez
Alice Dowdin Calvillo
(MAR) Selection of Officers - 1st meeting convened following Board filling vacancies and affirming committee members.
EXPANSION
AD HOC COMMITTEE
DATE TBD
April 2023 DATE IN THE FUTURE
Alice Dowdin Calvillo, Chair
Jim Holmes, Vice Chair
David Yarbrough
-selection of officers
-definition of “like-minded”
(MAR) Selection of Officers - 1st meeting convened following Board filling vacancies and affirming committee members.
By-Laws Article V, Section 5.3
Each committee shall on an annual basis choose its officers, comprised of a Chairperson and Vice-Chairperson
Ad Hoc Member Limit fewer members than majority of board (<5) Ad Hoc Member Limit fewer members than majority of board (<5) I I
I I
March 16, 2023 - Pioneer Community Energy Legislative and Regulatory Update Pioneer Community Energy Legislative and Regulatory Update March 16, 2023
Legislative Affairs
California Legislature, Capitol, and California Public Utilities Commission (CPUC) Update:
February 17, 2023 marked the 2023 – 2024 Legislative Session bill introduction deadline. It was a very busy start to the session with a staggering 2,628 total bills introduced; 1,756 bills were introduced in the Assembly and 882 were introduced in the Senate. Pioneer staff is currently monitoring and reviewing bill measures of potential impact in both Houses of the Legislature and are beginning to prioritize bills. Many of the bills being monitored are spot or intent bills which make technical, non-substantive changes in the law and act as placeholders for later proposals. These bills must be amended prior to being heard in committee. Policy committee hearings will begin in late March and continue through April. As these bills are amended, the Board will be apprised of potential impact to Pioneer and CCAs as appropriate.
In February, two legislative informational hearings were held. The first was held on February 22 in the Assembly Utilities an Energy Committee. This informational hearing focused on energy affordability in light of the recent gas price spikes and rising electricity costs. The second hearing was held on February 28 in the Senate Energy, Utilities, and Communications Committee. This informational hearing focused on the California Public Utilities Commission (CPUC) report to the Legislature and also included a panel discussing affordability issues. Both informational hearings were successful for CCAs as their efforts were showcased in the areas of savings to ratepayers and CCA programs that create savings.
On March 8, 2023, CalCCA and individual CCAs, including Pioneer, will participate in a “Lobby Day” at the Capitol in Sacramento. CalCCA and individual CCAs will hold meetings with representatives from the governor’s office, the California Energy Commission (CEC), and members of the Legislature.
The $291 billion Proposed Budget projects a revenue shortfall of $29.5 billion and a $22.5 billion budget gap.
The Proposed Budget seeks to close this gap and potential future gaps by implementing several measures:
delayed spending, pullbacks and reductions, fund shifts, “trigger reductions” that may be restored in 2024- 2025, and borrowed funds from loans and special funds. Budget reductions in the energy sector that may impact Pioneer include: a $270 million reduction from the CPUC Residential Solar and Storage programs for low-income customers, a $50 million reduction from the Long Duration Energy Storage Program at the CEC to support California’s clean energy transition, and a $400 million reduction from the California Arrearage Payment Program (CAPP) which helps customers pay utility arrearages resulting from the COVID-19 pandemic.
As of March 2023, the cuts listed above are just proposed. Pioneer staff will be tracking the status of these budget proposals throughout the budget process. Lastly, Governor Newsom submitted an energy reliability budget proposal that focuses on three important areas to Pioneer and CCAs: central procurement, Resource Adequacy (RA) deficiency penalties, and Integrated Resource Planning (IRP) enforcement by the California 'IONEER
COMMUNITY ENERGY
March 16, 2023 - Pioneer Community Energy Legislative and Regulatory Update Public Utilities Commission (CPUC).
Pioneer Legislative Update
Pioneer staff continues legislative engagement internally, with CalCCA, individual CCAs, and other stakeholders.
Pioneer staff will continue to independently engage, advocating with the Board, Member Agencies, and our Legislative Representatives on key legislative matters during the 2023-2024 session. Pioneer staff has met with all State Legislative Representatives in its territory, has begun developing relationships with Representatives and their offices, and has discussed priorities for the 2023-2024 Legislative Session.
Pioneer’s legislative efforts continue to focus on the issues of bioenergy and biomass, grid resiliency and reliability, Public Safety Power Shutoff (PSPS), Enhanced Powerline Safety Settings (EPSS) and wildfire mitigation, interconnection issues, microgrid development, addressing Power Charge Indifference Adjustment (PCIA) volatility, and preparing to avoid and oppose potentially threatening bills. Pioneer staff will keep the Board apprised as the 2023-2024 Legislative Session unfolds. 2023 Pioneer Bill Proposals:
• AB 625 (Aguiar-Curry):
• This bill, among other things, would extend the sunset date of the BioMAT program until the 250 megawatts have been procured through the program.
• Pioneer will be supporting this component of the bill. • SB 488 (Alvarado-Gil):
• This bill would authorize CCAs to participate in the BioRAM program for any portion of a local publicly owned electric utility’s required proportionate share of 125 MW that was not procured because of an exemption.
• Senator Alvarado-Gil is the author of this proposal and Senator Dahle is the co-author to this bill as a bi-partisan and local measure.
• Pioneer is the sponsor.
Regulatory Proceedings
Below is a summary table of the key issues, followed by further detail on activities since our last Board Meeting on a few ongoing priority Pioneer regulatory Proceedings and matters. More updates will follow at future Board meetings as regulatory proceedings and matters evolve.
Proceeding Issue Pioneer Position
R.22-10-010 Order Instituting Rulemaking (OIR)
to Implement AB 843 (2022) – The
Bioenergy Adjusting Tariff
Program
Expeditiously implement AB 843
to allow CCA access to the BioMAT
program for future subsidies for
biomass procurement and extend
sunset date indefinitely until all
MWs have been filled
March 16, 2023 - Pioneer Community Energy Legislative and Regulatory Update A.20-02-009; A.21-03-008; A.21-
06-001; A.22-05-029
PG&E 2019 Energy Resource
Recovery Account (ERRA)
Compliance Application; PG&E
2020 ERRA Compliance
Application; 2021 ERRA
Compliance Application; 2022
ERRA Compliance Application;
2023 ERRA Compliance
Application
Reduce the ERRA impact on the
PCIA; increase data transparency
from the IOUs
R.20-08-020 Rulemaking to develop a
successor to existing Net Energy
Metering (NEM) tariffs and to
review and refine existing NEM
tariffs
Mitigate impacts to Pioneer NEM
customers
R.17-06-026 Power Charge Indifference
Adjustment (PCIA)
Reduce the PCIA and rate volatility
for CCA customers; increase data
transparency from the IOUs
R.17-09-020; R.19-11-009; R.21-
10-002
Resource Adequacy (RA) Reform &
Implementation Tracks
Refine the current RA Program
construct; reduce volatility of RA
prices; increase RA procurement
availability and grid reliability
R.18-12-005 Utility De-energization, Public
Safety Power Shutoffs (PSPS), and
Enhanced Powerline Safety
Settings (EPSS)
Reduce impacts of PSPS and EPSS
events; increase coordination and
communications with IOUs to
ensure public safety during de-energization; limit PSPS and EPSS impacts on CCA load scheduling
• AB 843 OIR:
• The OIR was opened on October 20, 2022, to examine issues in the implementation of AB 843 which Pioneer and other CCAs championed in 2021. All CCAs, including Pioneer, have party status in the Proceeding. The preliminary schedule anticipates a Decision in Q3 2023. There was an opportunity in Opening Comments to push for a more aggressive schedule. • CalCCA filed Opening Comments on November 28, 2022 and Reply Comments on December 13, 2022. In both Opening Comments and Replies, CalCCA and most parties, including the IOUs, are aligned on the implementation: seeking same treatment for CCAs as the IOUs in the BioMAT Program.
• An Administrative Law Judge (ALJ) Ruling was issued on February 21, 2023 setting a Prehearing Conference (PHC) date for March 10, 2023; a Scoping Memo and Ruling are scheduled for Q1 2023 and a Proposed Decision (PD) in Q3 2023. Pioneer and CalCCA are pushing and urging for this Proceeding to move quickly.
March 16, 2023 - Pioneer Community Energy Legislative and Regulatory Update • CPUC has hired a staff person to implement AB 843. Staff at Pioneer have spoken to Brad Hill from the CPUC to emphasize the importance of AB 843 and given him the contact information for other CCAs interested in biomass.
• Net Billing Tariff (NEM 3.0):
• This Proceeding created a successor Program to NEM 2.0 to address some of the identified issues with the existing Program. The objective is to increase equity and eliminate cost shifts onto lower income customers who are subsidizing, to some degree, residential solar owners.
The PD was voted out unanimously at the December 15, 2022 Commission Voting Meeting and new solar customers that sign up after April 14, 2023 will be placed on NEM 3.0. There was a presentation at January’s Pioneer Board meeting regarding how the new Net Bill Tariff will work. Pioneer’s website includes information from the CPUC about NEM 3.0 including an FAQ, factsheet, and press release. This information will also be incorporated into online solar webinars.
• PG&E ERRA Compliance and ERRA Forecast:
o The ERRA Proceeding acts as a review of an IOU’s prior year portfolio management and accounting and seeks to identify errors and discrepancies between PG&E’s revenue requirements vis-à-vis collected revenues through the IOU’s General Rate Case which ultimately affects CCA rates through the Power Charge Indifference Adjustment (PCIA). • 2019 PG&E ERRA Compliance: a December 19, 2022 PD was issued disallowing under collected PSPS revenues from 2019 and adopting a calculation methodology. On January 9, 2023, Opening Comments of the Joint CCAs, Joint IOUs, and Public Advocates Office (PAO) were submitted. CalCCA argues that wholesale generation revenue should be included in the disallowance as the record plainly establishes imprudence in the Joint IOUs’ PSPS actions. The Joint IOUs argue to the contrary. The Joint IOUs Reply Comments recommend: 1) the Commission should adopt the PD's exclusion of unrealized wholesale generation revenues as the PD correctly found that it would be overly punitive to include this category of revenues whose calculation is highly speculative, overly complicated, and prone to error; 2) the CCA Parties’ Opening Comments merely relitigate past issues already adjudicated by the PD rather than demonstrating factual or legal error committed by the PD. The Utility Reform Network’s (TURN) Reply Comments argue that the Commission should reject another attempt by the IOUs to reduce shareholder funding of under collected balances caused by PSPS events. The PD further states that the IOUs shall forgo collection in rates from customers of all authorized revenue requirement equal to estimated unrealized volumetric sales and unrealized revenue resulting from PSPS events. The PD has already carefully considered the parties’ positions regarding which rate components should be included in the calculation of the unrealized revenues, and TURN believes that the PD establishes a fair and reasonable set of criteria.
Adopting the IOUS' position would result in a reduction in shareholder funding of under collected balances caused by PSPS events. The PD was scheduled to be voted on at the February 2, 2023 Voting Meeting but has been held until March 16, 2023, at the earliest. It is likely that a substantially revised PD or alternate PD will be issued before that time; the CPUC March 16, 2023 - Pioneer Community Energy Legislative and Regulatory Update may also ask for a review from Legal Division prior to voting on the PD. • 2022 PG&E ERRA Compliance: on February 27, 2023, PG&E filed their 2022 Compliance Application. This Application sets the next round of ERRA Proceedings in motion. Keyes & Fox and NewGen will be representing Pioneer and other CCAs in PG&E’s territory through these cases over the coming year.
• 2023 PG&E ERRA Forecast: PG&E filed their annual Forecast Application on May 31, 2022, forecasting its electric procurement cost revenue requirement and electricity sales for 2023.
New Market Price Benchmarks (MPB) arrived: higher energy and RA prices add significant value to the PCIA calculation; that additional value would be enough to turn the forecasted PCIA amount negative. On October 17, 2022, PG&E filed its October ERRA Forecast Update, including negative PCIA rates across several vintages. Drivers for the negative PCIA include higher brown power market prices, higher RA prices, lower RPS prices, an under collection of the ERRA, and an over collection of the PABA. PG&E fought the negative PCIA and crediting for it, despite SCE and SDGE already having a negative PCIA and crediting for it. Joint CCAs argued for uniform treatment for all the IOUs. Further Updates came on November 15, 2022 and another on December 30, 2022; the PCIA remained negative for several PG&E vintages. A PD was issued on November 28, 2022. The PD was a huge win for the Joint CCAs, eliminated a PCIA floor; vintages with forecasted negative indifference amounts will receive credits for those amounts. A Final Decision came at the December 15, 2022 Commission Voting Meeting.
Actual rates were submitted via Tier 1 Advise Letter on December 30, 2022 and went into effect on January 1, 2023.
• As reported at January’s Pioneer Board meeting, the latest PCIA forecast indicated that the market price benchmark was higher than PG&E’s “above market costs” resulting in a negative PCIA rate. Rather than provide a credit from the negative PCIA rate, PG&E proposed that the credit to customers be deferred and later be used to offset any subsequent PCIA payments made by customers. Pioneer via CalCCA argued that changing the methodology was inappropriate.
• As a result of the efforts through CalCCA, the CPUC found “no persuasive argument for [PG&E’s] proposal. PG&E must continue the current practice and flow through the PCIA adjustment whether positive or negative to all bundled and departed customers.” This was a huge win for Pioneer and all CCAs in PG&E service territory as the negative PCIA results in greater savings for our customers.
• Power Charge Indifference Adjustment:
• This Proceeding seeks to improve the methodology used in the ERRA Proceeding to determine the PCIA.
• Phase 2 of the Proceeding created three Working Groups to formulate processes to address additional PCIA proposals.
Working Group 3 (Portfolio Optimization) sought to resolve issues on portfolio optimization and resource allocation. A PD on Working Group 3 matters was issued on April 5, 2021. The Decision was unfavorable and did not address Working Group 3 recommendations. CalCCA submitted comments on the Decision focusing on March 16, 2023 - Pioneer Community Energy Legislative and Regulatory Update addressing the Working Group 3 recommendations that the PD disregarded or pushed to a later date. CalCCA filed an Application for Rehearing (AfR) on the PCIA Cap and Portfolio Optimization Decision. On April 7, 2022, the CPUC rejected the AfR and declined to revisit the aspects of the Decision that the AfR challenged. On May 11, 2022, SJCE and 3CE filed a Petition for Writ of Review with the California 6th Court of Appeals challenging the CPUC PCIA Working Group 3 Decision. The Petition’s arguments were that the CPUC treated this proceeding as quasi-legislative, when it was a rate setting proceeding; the Petition also argues that the CPUC made a legal error and did not consider the Working Group 3 reports. A Ruling is pending. The Voluntary Allocation Market Offer (VAMO) process is continuing in the Renewables Portfolio Standard (RPS) proceeding. On June 24, 2022, an Amended Scoping Ruling extended the statutory deadline to June 30, 2023, to address remaining issues in Phase 2: GHG free resources, long-term fixed price transactions in the RPS adder, calculation of Energy Index MPB, and VAMO. An August 4, 2022 ALJ Ruling requested stakeholder comments on long-term fixed-price RPS transactions and provided a Staff Proposal for Incorporating Long-Term RPS Transactions into the RPS MPB. Comments were filed in late August; Reply Comments were filed on September 9, 2022. A PD was expected by the end of February 2023.
Phase I: Track 2: an additional Staff Proposal was issued on September 12, 2022 on the RPS MPB, how to value GHG-free resources in the PCIA, and how to address data access issues. The Proposal sought to adopt GHG-free MPB for PCIA calculations and to work with staff to develop the details of this approach. ED held a workshop on November 18, 2022 to discuss the Staff Proposal.
• CalCCA submitted Comments on the Staff Proposal on November 7, 2022 addressing whether GHG-Free Resources are under-valued in the PCIA methodology. CalCCA supports the Staff Proposal to establish a MPB for GHG-Free Resources. Replies were filed on November 30, 2022. CalCCA filed Comments stating that: 1) The CPUC should maintain the existing RPS MPB methodology without change; Proposals to incorporate long-term fixed-price contracts into the RPS MPB calculation, while responsive to the Commission’s directive in D.19-10-020, do not align with the determination of other MPBs and should be rejected, as they are vulnerable to a wide range of inaccuracy and impose an increased administrative burden; 2) The CPUC should recognize GHG-Free value in the IOUs’ PCIA portfolios in a way that ensures all customers – bundled and unbundled – share this value in proportion to their responsibility for PCIA costs; while CalCCA prefers the existing interim GHG-Free energy allocation process as administered by PG&E and SCE, the Staff’s proposed MPB is also a workable solution; 3) The Commission should adopt a modified version of the Joint IOUs' June 13, 2022 proposal to apply a portfolio weight to the Energy Index MPB. The Joint IOUs have agreed to provide the portfolio weighting factors as part of their May 15 ERRA applications and provide data to facilitate a review of the three-year historical average calculations in the ERRA Forecast cases; further modifications to the Joint March 16, 2023 - Pioneer Community Energy Legislative and Regulatory Update IOUs’ proposal, to remove or add resources from historical CAISO data, should be rejected except to reflect removal of the Diablo Canyon nuclear power plant from PG&E’s PCIA-eligible resource portfolio. A PD was expected by the end of February 2023 on GHG-free Resource Valuation MPB, Energy Index MPB, and RPS MPB. CalCCA recently met with Energy Division (ED) to provide information on the method used by the CCAs to calculate the GHG-free value in their contracts reported in their responses to ED’s data request on GHG-Free value. • Resource Adequacy:
• R.21-10-002 established a Reform Track and an Implementation Track for RA compliance year 2023.
• Reform Track (formerly known as Track 3B.2): Slice of Day proposals and implementation topics were discussed through five workshops conducted in the fall of 2021 through the end of 2021. A Workshop Report was released in February 2022. The Workshop process was intended to lead to significant changes to the RA Program starting in 2024. A PD earlier this year adopted Local Capacity Obligations for 2023-2025, Flexible Capacity Obligations for 2023, and Reform Track Framework; Comments were filed on June 9, 2022, and Reply Comments were filed on June 14, 2022. Three Workstreams to resolve Slice of Day implementation details were ongoing from July and concluded in October 2022. The Final RA Reform Working Group Report and Proposals developed through these Workstreams were filed and served on November 15, 2022. CalCCA submitted Comments on the Report and Proposals on December 1, 2022. The Comments focused primarily on the need to test that sufficient RA resources exist for LSEs to meet their requirements, if not, to allow a process for LSEs to receive waivers and the need to test whether hourly transactability is a necessary feature of the initial Slice of Day implementation. Reply Comments were filed on December 12, 2023. Implementation Track Proposals were filed on January 20, 2023. Opening and Reply Comments on Proposals were filed on February 17 and February 27, 2023.
• Implementation Track: seeks to address System, Flexible, and Local RA capacity requirements and all other issues relating to RA procurement obligations and Program implementation details. Phase 2 is addressing Flexible Capacity Requirements, Local Capacity Requirements, modifications to the Planning Reserve Margin (PRM), and Qualifying Capacity (QC) Counting.
Proposals were filed January 21, 2022. On May 20, 2022, a PD was issued addressing RA requirements and Phase 2 Implementation Issues. Phase 3 will deal with 2024 requirements for flexible RA and the 2024-2026 local RA requirements. Phase 3 is anticipated to conclude summer 2023.
• On September 30, 2022, CalCCA filed a Petition for Modification (PFM) addressing deadlines and penalties for System and Flex RA procurement due to the uncertainty created by the PG&E Central Procurement Entity’s (CPE) failure to meet its Local RA procurement requirements, RA market scarcity, and the lack of justification for having a penalty waiver process for the CPE on Local RA but not for LSEs on Flex or System RA. The Commission issued a PD denying CalCCA’s PFM on November 9, 2022. The PD argues that because D.20-06-002 gave Energy Division the March 16, 2023 - Pioneer Community Energy Legislative and Regulatory Update flexibility not to send deficiency notices to LSEs for year-ahead RA obligations until after January 1, 2023, and that no new or changed facts were presented by the PFM, there is insufficient basis to warrant modification. CalCCA filed comments on November 29, 2022 opposing the PD and reiterating the same arguments as presented in the PFM. • On January 10, 2023, CalCCA Regulatory Committee held a vote on Local RA CPE Reform Proposals. These Proposals and this vote were a reaction to RA scarcity, time-sensitive RA issues, and the disruptions to 2023 RA procurement created by the CPE's (PG&E) failure, in its first year, to meet its local RA requirements which introduced significant uncertainty for LSEs to meet their own System and Flexible RA requirements. CalCCA’s Proposal and subsequent Comments on the assigned Commissioner’s Amended Scoping Memo and Ruling were filed on January 20, 2023. The Comments included four components: transparency enhancements, timeline changes, and modifications to the self-showing incentive mechanism. 1) Transparency Enhancements: ensure each annual compliance report includes current requirements as well as other proposed additions; the proposed additions are: If any offers or self-showings were not selected by the CPE, why were they not selected (price, inability to negotiate contract terms, other); amount of local capacity not offered or self-shown. 2) Timeline Change: CPEs to lock in procurement two years forward. Regardless of unmet need, the CPE process would be complete at this point; CAISO conducts local backstop immediately after CPE procurement two years forward; CPE and backstop credits allocated to LSEs; LSEs have at least one year after credits allocated to conduct procurement prior to year ahead showings. 3) Incentives: change the basis of the LCR-RCM away from the local RA premium, which currently is very small, if not zero, in all local capacity areas; 4) that the Commission should revisit the requirement that import RA be from a firm energy import, and the Commission should modify the import RA bidding rules to attract additional RA capacity to California. A Workshop on Implementation Track Phase 3 Proposals was held on February 8, 2023; February 17, 2023 Comments on Phase 3 Proposals were filed; Replies were filed on March 3, 2023. • Utility Deenergization, PSPS, and EPSS:
o Pioneer staff is leading an effort among Joint CCAs and other stakeholders asking the CPUC for the consideration of Enhanced Powerline Safety Settings (EPSS) issues in the Deenergization or its own Proceeding. Pioneer, along with Joint CCAs, Joint Local Governments, and Rural County Representatives of California (RCRC), filed a motion with the CPUC on July 12, 2022, to consider EPSS issues in the Deenergization or its own Proceeding. The arguments in the motion are to treat EPSS events with the same regulations and oversight as PSPS events. Joint CCAs, Joint Local Governments, and RCRC held three ex parte meetings with Commissioners and staff from the CPUC. The meetings were overall successful; the parties seem to have gained some traction presenting their arguments. On November 7, 2022, Pioneer, along with the other Joint Parties, filed a letter with the CPUC regarding Fast Trip and EPSS issues and concerns; the letter was also sent to the Governor’s Office and several others requesting that the Programs be regulated as the PSPS Program is. The letter contained signatures from Senator Dodd, Senator Laird, Senator Dahle, Senator Nielsen, Assembly Member Dahle, Assembly Member Gallagher, and Assembly Member Wood. PG&E quickly responded to the letter defending its EPSS March 16, 2023 - Pioneer Community Energy Legislative and Regulatory Update program and arguing against further oversight or regulation of the program. CPUC President Alice Reynolds responded to Assembly Member Levine’s November 2, 2022 letter in the PSPS Proceeding regarding fast trip and EPSS impacts and oversight. In her response, she pointed to existing CPUC oversight of PG&E’s EPSS Program, including monthly reporting, regulatory obligations under the Office of Energy Infrastructure Safety, and requirements under PG&E’s Wildfire Mitigation Plan focusing increased attention to avoidance of adverse EPSS impacts.
Another letter by the Joint Parties was sent to President Reynolds on December 14, 2022 further demonstrating the severe impacts of EPSS events, especially in rural areas, and again calling for increased regulation of the fast trip programs. o An EPSS Workshop is scheduled with the CPUC on March 17, 2023; a meeting was held on March 3, 2023 among Joint Parties, including Pioneer, to prepare for the workshop. This is a big success for Pioneer as EPSS issues are being further considered by the CPUC. • CPUC, CEC, and Legislative efforts to address the impacts of spiking natural gas prices:
o On February 2, 2023, the CPUC voted to accelerate the California Climate Credit to help California families with high gas bills. The $90-$120 credit will be applied to residential utility customer bills starting in March 2023 for customers of PG&E, Southern California Edison, San Diego Gas & Electric, and Southern California Gas Company. The CPUC and the CEC held an en banc hearing on February 7, 2023 bringing together market experts to examine possible drivers behind the natural gas price spikes and explore potential state actions that can be taken to alleviate the impact on utility customers. Additionally, the Assembly Utilities and Energy Committee held an informational hearing on February 22, 2023 to explore energy affordability issues and present challenges. Another informational hearing was held on February 28, 2023 in the Senate Energy, Utilities, and Communications Committee. This informational hearing focused on the CPUC report to the Legislature and also included a panel discussing affordability issues. Both informational hearings were successful for CCAs as their efforts were showcased in the areas of savings to ratepayers and CCA programs that create savings. 3/9/2023
1 Customer Engagement Update
February 2023 Board Meeting
Types of Engagement
Getting to know our customers: • Phone Calls & Emails
• In Person Customer Site Visits
• Event Attendance & Sponsorship
• Community Presentations
• Key External Stakeholder
Meetings
• Social Media
• Paid Media
• Earned Media
1 2
3/9/2023
2 Direct Customer Engagement
Phone Calls/Emails
• 1,299 customer calls (call
center)
• 93.1% satisfied with
customer service
• 138 emails
Customer Influence
• Opt Outs Rescinded – 18
• Re-Enrollment – 21
• Retained – 50
Customer Events
• Who is Pioneer Seminar
March Customer Engagement Activities
• Loomis Chamber
• Auburn Chamber –
Celebrity Chef
• Rocklin Chamber
• El Dorado Hills Chamber
• Lincoln Chamber
• Sheridan Municipal
Advisory Council
• Lincoln Hills Foundation
• North Auburn Municipal
Advisory Council
• Newcastle/Ophir Municipal
Advisory Council
• Placer Union High School
District Tech Event
• Bear Flag Realty Team Meeting
• El Dorado Hills Chamber
Installation Event
• Grass Valley Town Hall Meeting –
Expansion 2024
• Nevada City Town Hall Meeting –
Expansion 2024
3 4
3/9/2023
3 Social Media
Website
• 8,400 Users
Facebook
• 824 Followers
• 8 Items Posted
• 714 Post Impressions
LinkedIn
• 213 Followers
• 6 Items Posted
• 502 Post Impressions
Instagram
• 31 Followers
• 6 Posts
• 92 Impressions
Other Media
Critical Mention
• 14,308,868 – Total Radio
Audience
• 2,690,847 – Total Online/Print
Audience
• $50,618 – Total Value
Social Media Ads
• 3 Campaigns
• 2,931 Clicks
• 105,301 Reach
Google Ads
• 2 Campaigns
• 2,976 Clicks
• 345,688 Impressions
Print Media
• 3 Ads
• 40,950 Circulation
5 6
3/9/2023
4 Key Metrics
Green100
• 282 - Total Participants
• 3 - Opt Up
• 0 - Opt Down
Customer Counts
• 85.8% - Participation
• 156,400 customers
7 STATE OF CALIFORNIA Gavin Newsom, Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
February 27, 2023
Don Eckert
Executive Director
Pioneer Community Energy
2510 Warren Drive, Suite B
Rocklin, CA 95677
Via email: Don Eckert ([email protected]) RE: Letter Certifying Pioneer Community Energy Addendum No. 2 To the Community Choice Aggregation Implementation Plan and Statement of Intent Addressing Pioneer Expansion to the Cities of Grass Valley and Nevada City Dear Mr. Eckert:
The California Public Utilities Commission’s Energy Division has reviewed Pioneer Community Energy Addendum No. 2 to the Community Choice Aggregation Implementation Plan and Statement of Intent Addressing Pioneer Expansion to the Cities of Grass Valley and Nevada City, which was submitted to us on December 16, 2022 to begin service to the Cities of Grass Valley and Nevada City, effective January 1, 2024.
Pursuant to Public Utilities Code Section 366.2 (c)(7), within 90 days after the Community Choice Aggregator (CCA) establishing load aggregation files an Implementation Plan, the Commission is required to certify that it has received the Implementation Plan, including any additional information necessary to determine a cost-recovery mechanism.
Public Utilities Code Section 366.2 (c)(3) requires a CCA Implementation Plan to contain all of the following:
A) An organizational structure of the program, its operations, and its funding.
B) Rate setting and other costs to participants.
C) Provisions for disclosure and due process in setting rates and allocating costs among participants.
D) The methods for entering and terminating agreements with other entities.
E) The rights and responsibilities of program participants, including, but not limited to, consumer protection procedures, credit issues, and shutoff procedures.
F) Details regarding the termination of the program.
G) A description of the third parties that will be supplying electricity under the program, including, but not limited to, information about financial, technical and operational capabilities.
Don Eckert
February 27, 2023
Pursuant to Public Utilities Code Section 366.2 (c)(4), a CCA is also to prepare and provide for all of the following:
A) A statement of intent; and
B) Provision(s) that provide for:
1) Universal access;
2) Reliability;
3) Equitable treatment of all classes of customers; and 4) Compliance with any legal requirements concerning aggregated service.
The Commission hereby certifies that the Implementation Plan and Statement of Intent Addendum submitted by Pioneer Community Energy contain the information required by Public Utilities Code Section 366.2 (c). Should there be any modification to the Implementation Plan, including but not limited to the start date, anticipated load and phase-in schedule, Pioneer Community Energy shall submit an updated Implementation Plan to the Commission in the same manner it submitted the original plan.
Pursuant to P.U. Code Section 366.2 (c)(7), the Commission is required to provide Pioneer Community Energy with “its findings regarding any cost recovery that must be paid by customers of the community choice aggregator to prevent a shifting of costs as provided for in P.U. Code Section 366.2 subdivisions (d), (e) and (f).” The costs referenced in P.U. Code Section 366.2 subdivisions (d), (e) and (f) are recovered via separate charges for: (1) Power Charge Indifference Adjustment (per kWh); (2) DWR Bond Charge (per kWh); and (3) Competition Transition Charge (CTC) (per kWh). By this letter, the Commission informs Pioneer Community Energy that these costs are identified on each of Pacific Gas and Electric customer-class-specific tariff sheets, in the “Special Conditions” section, sub-section “Billing,” in the section labeled “Direct Access (DA) and Community Choice Aggregation (CCA) customers” and in the column labeled “Community Choice Aggregation Cost Responsibility Surcharge (CCA CRS).” Sincerely,
Leuwam Tesfai
Deputy Executive Director for Energy and Climate Policy California Public Utilities Commission
cc: Scott Blaising ([email protected])
Brittany Iles ([email protected])
Mark Riffey ([email protected])
Dina Mackin ([email protected])
Aaron Jacobs-Smith ([email protected])
For
3/10/2023
1 John Kennedy, RCRC
Kirstin Kolpitcke, Pioneer Community Energy
Neal Reardon, Sonoma Clean Power
David Peffer, Joint CCAs
Joint Parties: Fast Trip, Unplanned
Outages, and Distribution
Reliability Workshop
1 Introduction
• Fast-Trip outages are a major issue with
significant and widespread customer impacts. • To address these impacts, Joint Parties requested that the Commission open a dedicated proceeding
or phase of the De-Energization Rulemaking to: • Review and consider the reasonableness of the IOUs fast-trip programs. • Create robust mechanisms for the ongoing oversight of fast-trip programs. • Adopt rules governing the IOUs’ fast-trip programs. 2 1 2
3/10/2023
2 Regulation Must Apply to
All Three Large IOUs
• Much more data is available for PG&E thanks to
PG&E’s monthly EPSS reporting requirement. • Both SCE and SDG&E operate their own Fast-Trip programs, which have been implemented without
formal program review and approval by the
Commission. • Very little information regarding SCE and SDG&E’s programs is available. 3
Fast Trip Impacts on Customers
and Communities
Fast Trip At a Glance – 2022 (PG&E)
4 3
4 3/10/2023
3 Fast Trip Impacts on Customers
and Communities
• 574 circuits experienced Fast Trip (EPSS) Outages
in 2022
• 326 circuits experienced three or fewer outages
• 248 circuits experienced four or more outages
• 88 circuits with 8 or more outages
• 51 circuits with 10 or more outages
• 33 circuits with 12 or more outages
• 15 circuits with 14 or more outages
• 4 circuits with 17 or more outages
• 12 circuits experienced 6 or more outages in a
single month
5 Fast Trip Impacts on Customers
and Communities
• Frequency and duration challenges
• Residential customers
• Businesses and local economies
• Schools
• Hospitals
• Broader impacts on decarbonization and
electrification efforts
• Mitigation measures vs. risk reduction strategies 6
5 6
3/10/2023
4 Fast Trip Impacts on Customers
and Communities
1 Fast Trip by the Numbers • El Dorado County had 108 separate outages from January through November
of 2022 and 53 or 49% of these were for
“unknown reasons” (not third party,
animal, company initiated, equipment or
vegetation related) • Apple Hill 2102 experienced 20 separate outages lasting over 160 hours in 2022 • Placer County had 131 outages during the same period and 48 or 36% of these
were for unknown reasons • Shingle Springs 2109 had 14 separate outages resulting in over 72 hours
without power in 2022 • Overall, Pioneer’s service territory experienced 239 separate outages
lasting over 1,210 hours as a result of
Fast Trips in 2022 (the greatest cause of
these outages…unknown) • 376 outages affecting schools and 8 outages affecting hospitals • Over 10,000 life support customers impacted by Fast Trips in 2022 0
50 100
150
200
250
Pioneer Service Area Total Hours of EPSS
Outages
Total
Fast Trip Impacts on Customers
and Communities
2 Bonnienook 1102: 11/2/22 outage from 1:10 pm to 4:10 pm – 171 minutes 11/2/22 outage from 5:26 pm to 11/3 12:25 am – 419 minutes 11/3/22 outage from 8:21 am to 11/3 9:27 am – 66 minutes 3 outages totaling 656 minutes within 24 hours
Applehill 2102: 10/23/22 outage from 9:49 am to 10/24 10:28 am – 1,479 minutes 10/25/22 outage from 5:35 pm to 10/26 2:04 am – 509 minutes 10/26/22 outage from 7:20 am to 10/26 10:46 am – 206 minutes 3 outages totaling 2,194 minutes in less than 4 days
Penryn 1105: 9/27/22 outage from 12:33 am to 9/27 10:50 am – 617 minutes 9/27/22 outage from 8:44 pm to 9/28 4:43 am – 479 minutes Total 2 outages totaling 1,096 minutes in just over 1 day 7 8
3/10/2023
5 Fast Trip Impacts on Customers
and Communities
3 Fast Trip Impacts on Customers
and Communities
• The number, scope, and duration of EPSS events
has increased dramatically
• Ten circuit protection zones affecting a collective
2,800 customers experienced more than 1,000
minutes of EPSS outage in 2022
• These impacted areas do not correlate well with
historic PSPS impacts
• Vulnerable customers find themselves
immediately unable to use required medical
devices 10
9 10
3/10/2023
6 Fast Trip Impacts on Customers
and Communities
● Both Marin & Napa Counties have seen pockets with
repeated outages
○ Silverado 2105 with 17 outages (avg 4.6 hours), Silverado 2104 with 13 outages (avg 10 hours), Silverado 2102 with 13 outages (avg 7.2 hours)
● These are communities with poor cell reception - often reception goes down with the outage
● Difficult for residents to plan for and hits residents with access & functional needs hardest, causing stress and
anxiety 11
Fast Trip Impacts on Customers
and Communities
● Prevents or interrupts customers from utilizing
necessary medical devices
● Brings down elevators in multi-level buildings
● Loss of food during extended outages
● Home-based and downtown businesses have
been impacted in geographically isolated cities
like Fairfax
● Fairfax has had to cancel public meetings 12
11 12
3/10/2023
7 Local Support for Residents During
Power Outages
• Local governments are thrust into triage mode
• Can work to mitigate pain and suffering caused
by events
• However, they are not able to address the root of
the problem - they do not operate infrastructure
or deploy PSPS / EPSS events 13
Local Support for Residents
During Power Outages Put out portable stop signs at traffic lights and/or station personnel to direct traffic Coordinate with critical facilities (hospitals, water/wastewater facilities, skilled nursing facilities, schools, etc.) to assess the impact of the outage and provide necessary support Perform in-home welfare checks on residents in the local government’s in-home support services program(s) Field large volumes of inquiries and complaints from impacted residents looking for information and/or venting frustration For large outages, activate Joint Information Centers to act as a central point of contact for news media and dissemination of incident information Provide warming or cooling centers, if the weather requires it 14 13 14
3/10/2023
8 Local Support for Residents
During Power Outages
• The costs of this support are created by the IOUs
but are externalized and borne by local
governments. • The effectiveness of local government responses can be limited by the unpredictable nature of fast
trip. • The effectiveness of local government response is hampered by the lack of outage data sharing. 15
Local Support for Residents During
Power Outages
• We welcome IOU support for customers (both
residential and commercial) during power outages,
but mitigation actions alone miss the mark
• For Fast Trip, what customers need is certainty that
IOUs will take the actions necessary to reduce the
probability of future outages (vegetation
management, installation of animal exclusion devices,
line segmentation, deployment of covered conductor,
etc.) • IOUs should work proactively to identify resilience areas or microgrids that can be isolated and energized
during a Fast Trip Outage 16
15 16
3/10/2023
9 Local Support for Residents During
Power Outages
• CPUC should collaborate with local governments,
CCAs, and utilities to fund these projects and
perform necessary building upgrades
• The CPUC Microgrid Improvement Program could
provide real, meaningful benefits if structured
correctly, but not clear the final version will adequately prioritize funding for communities with greatest
resilience needs. 17 Actions IOUs Can Take to Help Locals Support Customers Before, During, and
After Power Outages
• IOUs must identify the boundaries of Circuit
Protection Zones in our territory and a list of
customer meters in each zone
• Without this we are not able to consider
investments in programs to help mitigate
customers experiencing the greatest impact 18
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3/10/2023
10 Actions IOUs Can Take to Help Locals
Support Customers Before, During, and
After Power Outages
• Once actions are taken to reduce a line segment’s ignition risk, the segment safety device’s trigger settings should be returned to normal. Sensitivity should be reduced as line safety is improved. • The IOUs should only implement fast trip settings during those times and for those segments for which there is an appreciable wildfire risk. A fast-trip outage that occurs when there is no wildfire risk does not serve a meaningful safety purpose and is unreasonable. • SCE and SDG&E should immediately begin submitting monthly reports using the same template as PG&E. • The IOUs should immediately implement comprehensive fast-trip data sharing with public safety partners (including local govs and CCAs). This should include real-time outage data, data regarding current and planned sensitivity settings at the line segment level, and historical outage data. • The IOUs should collect and report data on fast-trip outage impacts on customers and communities. 19 Proposed Actions
Some impacted residents and locals are feeling
forgotten and abandoned
In July 2022, parties requested the CPUC to: • Develop a standard set of rules governing all IOU Fast Trip programs
• Ensure the rules address the same issue areas as
PSPS rules
Since that time, the number of Fast Trip outages
more than doubled
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11 Proposed Actions
• We appreciate the CPUC holding this workshop to
help determine how to respond to Fast Trip outages
and broader system reliability concerns
• Our communities cannot have another year of Fast
Trip outages like they experienced in 2022
• We strongly suggest the CPUC establish clear
expectations for IOUs to take necessary actions to
significantly reduce the probability of future Fast Trip outages
• We suggest prioritizing work on those circuits that
experienced four or more outages in 2022
21 Proposed Actions
The Commission should open a dedicated
proceeding or phase of the De-Energization
Rulemaking to: • Review and consider the reasonableness of each IOU’s fast-trip program. • Create robust mechanisms for the ongoing oversight of fast-trip programs. • Adopt rules governing the IOUs’ fast-trip programs. • Ensure adequate mitigation of fast-trip outages. • Ensure adequate transparency and data-sharing with public safety partners. 22
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