Agenda — Pioneer Community Energy Board of Directors, May 25, 2023

Pioneer Community Energy
Board of Directors Agenda
May 25, 2023
3:00 PM
Pioneer Community Energy Board Room
2510 Warren Drive, Suite B, Rocklin, CA 95677
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.

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Public Comment via Computer or Smartphone
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Board of Directors
Chair: Alice Dowdin Calvillo
Vice Chair: John Hidahl
City of Auburn
Alice Dowdin Calvillo
Rachel Radell-Harris, Alternate
City of Colfax
Wes Heathcock
Kim Douglass, Alternate
County of El Dorado
John Hidahl
Lori Parlin, Alternate
City of Grass Valley
Tom Ivy
Jan Arbuckle, Alternate
City of Lincoln
Holly Andreatta
Dan Karleskint, Alternate
Town of Loomis
Amanda Cortez
Danny Cartwright, Alternate
Nevada City
Gary Petersen
vacant, Alternate
County of Placer
Jim Holmes
Suzanne Jones
Bonnie Gore, Alternate
City of Placerville
David Yarbrough
John Clerici, Alternate
City of Rocklin
Greg Janda
David Bass, Alternate
Plf)NEER

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 April 20, 2023 regular meeting. (ECKERT) b) FINANCE & ADMINISTRATION
Receive Quarterly Financial Reports through March 31, 2023. (KOEHN) c) POWER PROCUREMENT
Adopt Resolution approving plan to delay compliance with Uploading Time Varying Rates to the Market Informed Demand Automation Server (MIDAS) database. (KANG)
d) LEGISLATIVE & REGULATORY AFFAIRS
Receive and approve the revised 2023 Pioneer Legislative Policy and Platform that includes the following updates: added AB 50 (Wood), AB 538 (Holden), AB 557 (Hart), AB 643 (Berman), SB 83 (Wiener), SB 529 (Gonzalez), and SB 537 (Becker) to “support” positions, and added AB 1373 (Garcia) to “oppose unless amended.” (KANG) e) FINANCE & ADMINISTRATION
Adopt a resolution approving and authorizing the Executive Director to execute a renewal agreement with Maher Accountancy for accounting services from July 1, 2023, through June 30, 2024 for an amount not to exceed $195,800. (KOEHN)

REGULAR SESSION
III. REGULAR AGENDA
2) MARKETING & COMMUNICATIONS
Decision on Pursuit of Public Purpose Program Funding (ACTION- ECKERT) RECOMMENDATION: Receive a report and provide direction, as it relates to the next steps in pursuit of submitting an Elect to Administer application to the California Public Utilities Commission to secure funds from the CPUC’s public purpose program. 3) FINANCE & ADMINISTRATION
Cybersecurity Assessment and Information Technology Review (DISCUSSION - KOEHN) RECOMMENDATION: Receive a report on the annual Cybersecurity Assessment and Information Technology Review.
4) ENERGY PROCUREMENT
Update on California Market Pricesfor Pioneer’s Power Procurement (DISCUSSION - KANG) Recommendation: Receive an update from Pioneer Community Energy staff regarding California market prices for Energy, Renewable Energy Certificates and Resource Adequacy.
5) FINANCE & ADMINISTRATION
Proposed Fiscal Year 2023-24 Budget (DISCUSSION - KOEHN) Recommendation: Receive a presentation on the Proposed Fiscal Year 2023-24 Budget and provide direction as appropriate. The Recommended Budget will be brought to the Board for approval at the June 15, 2023 Board meeting.

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

1. Glossary of Terms
D. ADJOURNMENT
Upcoming Meetings of the Board:

June 1, 2023 at 3:00 PM: Special Meeting – Board Workshop June 15, 2023 at 3:00 PM: Regular Meeting
Pioneer Community Energy Offices
2510 Warren Drive, Suite B
Rocklin, CA 95677
Pioneer Community Energy is committed to ensuring that persons with disabilities are provided the resources to participate fully in its public meetings. If you are hearing impaired, we have listening devices available. If you require additional disability-related modifications or accommodations, including auxiliary aids or services, please contact the Clerk of the Board. If requested, the agenda shall be provided in appropriate alternative formats to persons with disabilities. All requests must be in writing and must be received by the Clerk five business days prior to the scheduled meeting for which you are requesting accommodation.

Requests received after such time will be accommodated only if time permits.

Affidavit of Posting
I, Teresa Willock, Board Secretary, declare under penalty of perjury that the foregoing agenda for the May 25, 2023 regular meeting of the Pioneer Community Energy Governing Board was posted and available for public review on May 19, 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].

PIONEER COMMUNITY ENERGY

GOVERNING BOARD
April 20, 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 April 20, 2023. Pursuant to Government Code section 54953(e) and other applicable provisions of the Brown Act, the Members convened in person and the meeting was accessible to the public at Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, California, 95677; was accessible for viewer participation on the Zoom platform at the following link at: https://us06web.zoom.us/j/89967227073; and, was live streamed for viewing on the Pioneer website at: https://pioneercommunityenergy.org/about-us/meetings-and-agendas/.

Roll Call
P A Agency Primary Member or Alternate Member
x City of Auburn x Chair
Alice Dowdin Calvillo Rachel Radell-Harris
x County of El Dorado x Vice Chair
John Hidahl Lori Parlin
x City of Colfax x Wes Heathcock Kim Douglass
x City of Grass Valley x Gary Petersen vacant
x City of Lincoln x Holly Andreatta Dan Karleskint
x Town of Loomis x Amanda Cortez Danny Cartwright
x Nevada City x Tom Ivy Jan Arbuckle
x County of Placer x Jim Holmes Bonnie Gore
x County of Placer x Suzanne Jones
x City of Placerville x David Yarbrough John Clerici
x City of Rocklin x Greg Janda David Bass
Chair Dowdin Calvillo presided over the meeting.

Chair Dowdin Calvillo welcomed and introduced new members to the Board of Directors. Tom Ivy, Nevada City; and Gary Petersen, City of Grass Valley.

Public Report of Closed Session
Immediately prior to this meeting, the Board met in closed session pursuant to GC §54956.9(d)(1), for a Conference with Legal Counsel regarding Existing Litigation for Case: Askew v. Pioneer Community Energy, Case No. RSC0026965.

General Counsel Inder Khalsa reported that the Board voted unanimously to authorize the defense of a small claims action, Askew v. Pioneer Community Energy, Placer County Case No. RSC0026965.

Agenda Review
Reviewed and made no revision to the meeting agenda for April 20, 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 March 16, 2023, regular meetings.

Received Draft Financial Reports for February 2023.

Adopted Resolution 2023-9 to establish an ad hoc committee for Employee Health and Welfare purposes.

MOTION: Andreatta/Cortez. Vote: 11:0:0
ROLL CALL: Andreatta, Cortez, Heathcock, Hidahl, Holmes, Ivy, Janda, Jones, Petersen, Yarbrough, Dowdin Calvillo.

No/Abstain: None.

Absent: None.

Entry No. 3
Pioneer Community Energy Brand
Adopted Resolution 2023-10 approving the new logo, color palette, and brand image; and authorizing the Executive Director to proceed with the transition to the new logo, color palette, and brand image.

MOTION: Andreatta/Janda. Vote: 11:0:0
ROLL CALL: Andreatta, Cortez, Heathcock, Hidahl, Holmes, Ivy, Janda, Jones, Petersen, Yarbrough, Dowdin Calvillo.

No/Abstain: None.

Absent: None.

Entry No. 4
Amendment to the 2023 Governing Board Meeting Schedule
Adopted Resolution 2023-11 amending the 2023 Governing Board Meeting Schedule through January 2024, by moving the May 18, 2023 meeting to May 25, 2023.

MOTION: Holmes/Hidahl. Vote: 11:0:0
ROLL CALL: Andreatta, Cortez, Heathcock, Hidahl, Holmes, Ivy, Janda, Jones, Petersen, Yarbrough, Dowdin Calvillo.

No/Abstain: None.

Absent: None.

Entry No. 5
Receive and Approve the 2023 Pioneer Legislative Policy and Platform Received and approved the 2023 Pioneer Legislative Policy and Platform that includes the following recommendations: adopt a support position on AB 625 (Aguiar-Curry), AB 704 (Patterson), AB 998 (Connolly), SB 410 (Becker), and SB 488 (Alvarado-Gil).

MOTION: Holmes/Jones. Vote: 11:0:0
ROLL CALL: Andreatta, Cortez, Heathcock, Hidahl, Holmes, Ivy, Janda, Jones, Petersen, Yarbrough, Dowdin Calvillo.

No/Abstain: None.

Absent: None.

Entry No. 6
Heard General Administration Functions, Part II.

Board Member Communications
Committee Chair Holmes reported that the Expansion ad hoc Committee met on April 13, 2023. The Committee selected Officers for the year, discussed the Expansion Policy, received an update on the recruitment for the Community Outreach Manager and expansion into Unincorporated Nevada County. The Committee will convene again when staff have new updates.

Director Heathcock expressed appreciation for Executive Director Eckert and Legislative & Regulatory Affairs Manager Kolpitcke for bringing the SB 1383 presentation before the Colfax City Council.

Governing Board Minutes
April 20, 2023
page 2
Executive Director Communications
Executive Director Eckert discussed scheduling of the Board Workshop; and the Board agreed on Thursday, June 1, beginning at 3:00 PM. Executive Director Eckert reminded the Board that all Members are invited, however, the workshop will be most beneficial to new Members.

Executive Director Eckert announced that additional SB 1383 presentations have been scheduled with Member Agencies of Auburn, Lincoln, and Loomis during the month of May.

Informational Items
Received the Glossary of Terms.

Adjournment
The meeting adjourned at 3:51 PM.

ATTEST:

Minutes approved as presented by a majority vote of
the Governing Board on May 25, 2023.

Teresa Willock, Board Secretary
Governing Board Minutes
April 20, 2023
page 3

Page 1 of 2 ends

Staff Report – Item 1b
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1b: Receive Quarterly Financials Through March 2023 Date: 5/25/2023

RECOMMENDATION
Receive Quarterly Financial Reports through March 31, 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 March 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.

ANALYSIS & DISCUSSION
The table below shows the year-to-date budget-to-actuals summary for the third quarter (Jan – Mar) of FY 2022-23.
$ in Thousands FY 2022-23
YTD Budget
FY 2022-23
YTD Actuals
$ %
Energy Revenues 162,898 163,869 971 0.6%
Power Supply 133,919 131,308 (2,611) -1.9%
Contribution Margin $28,979 $32,561 $3,582 12.4%
Operating Expenses 8,591 6,958 (1,633) -19.0%
Debt Service and Other 3,300 2,745 (555) -16.8%
Contribution to/(from) Net Position $17,089 $22,859 $5,770 33.8% Variance
(Under)/Over
Plf)NEER

COMMUNITY ENERGY
Agenda Item: 1b Agenda Date: 5/25/2023

Page 2 of 2 ends

Energy Revenues
The YTD actuals show $971 thousand, or less than 1%, more revenue than expected compared to the FY 2022- 23 Budget and are in line with expectations.

Power Supply
The YTD actuals show $2.6 million less expense than expected compared to the FY 2022-23 Budget, a budget savings of nearly 2%.

Operating Expenses
The YTD actuals show $1.6 million less expense than expected compared to the FY 2022-23 Budget, partially due to challenges filling vacant positions throughout the year. Operating expenses are not evenly distributed over the course of a fiscal year, and it is expected that this difference will moderate over the course of the year.

Debt Service and Other
The Debt Service actuals are in line with expectations, while interest earnings are exceeding expectations as interest rates continue to increase. Discussions with the California Public Utilities Commission (CPUC) regarding a potential increase in CCAs’ Financial Security Requirement (FSR) postings are ongoing and have deferred additional posting so far this year.

Contribution to Net Position and Reserves
The contribution to Net Position is currently exceeding YTD budget expectations by nearly $5.8 million. While this is a positive direction, unexpected weather events still pose a significant risk to Pioneer’s days of liquidity through the end of this fiscal year. The Reserve policy adopted during the Fall 2021 established a minimum cash liquidity target of 160 days and a 3-to-5-year timeline to achieve that target. The expectation, barring extreme weather events, is that Pioneer could achieve that minimum target during fiscal year 2024-25.

STRATEGIC PLAN
Strategic Priority 5: Financial Stability & Strategic Growth

FISCAL IMPACT
The YTD change in net position through nine months of the fiscal year is $25.3 million.

ATTACHMENTS

1. Financial Reports through March 31, 2023
1 ACCOUNTANTS’ COMPILATION REPORT
Management
Pioneer Community Energy
Management is responsible for the accompanying financial statements of the CCA Program of Pioneer Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of March 31, 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.

Maher Accountancy
San Rafael, CA
May 4, 2023
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com CCA Fund
ASSETS
Current assets
Cash and cash equivalents 17,477,200 $
Investments 26,318,690
Accounts receivable, net of allowance 22,537,257
Accrued revenue 8,015,916
Other receivables 730,659
Interest receivable 161,334
Prepaid expenses 28,286
Deposits 5,351,975
Total current assets 80,621,317
Noncurrent assets
Lease asset, net of amortization 1,479,246
Total noncurrent assets 1,479,246
Total assets 82,100,563

LIABILITIES
Current liabilities
Accrued cost of electricity 10,410,064
Accounts payable 361,029
Other accrued liabilities 364,365
Interest payable 24,583
Deposits 393,756
Note payable 648,898
Lease liability 73,898
Total current liabilities 12,276,593
Noncurrent liabilities
Note payable 6,766,313
Lease liability 1,585,380
Total noncurrent liabilities 8,351,693
Total liabilities 20,628,286

NET POSITION
Net investment (deficit) in capital assets (180,032)
Unrestricted net position 61,652,309
Total net position 61,472,277 $

PIONEER COMMUNITY ENERGY

STATEMENT OF NET POSITION
As of March 31, 2023

CCA FUND
See accountants' compilation report. 2
CCA Fund

OPERATING REVENUES
Electricity sales, net 156,999,515 $
Other income 15,000
Total operating revenues 157,014,515

OPERATING EXPENSES
Cost of electricity 125,480,614
Contract services 4,221,478
Staff compensation 2,201,030
Other operating expenses 533,435
Total operating expenses 132,436,557
Operating income (loss) 24,577,958

NONOPERATING REVENUES (EXPENSES)
Grant income 1,041,957
Investment gains (losses) 196,402
Interest and financing expense (487,779)
Nonoperating revenues (expenses), net 750,580
CHANGE IN NET POSITION 25,328,538
Net position at beginning of period 36,143,739
Net position at end of period 61,472,277 $

PIONEER COMMUNITY ENERGY
Nine Months Ended March 31, 2023

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CCA FUND
See accountants' compilation report. 3
Participation Rates – March 2023
Participation Rate by TOT January 2023 February 2023 March 2023 AUBURN INC 85.75% 85.72% 85.87%
COLFAX INC 88.72% 88.54% 89.07%
LINCOLN INC 83.39% 83.18% 83.08%
LOOMIS INC 88.99% 88.70% 88.62%
PLACERVILLE INC 86.58% 87.02% 86.82%
ROCKLIN INC 91.78% 91.35% 90.96%
UNINC EL DORADO CO 83.08% 81.20% 81.26%
UNINC PLACER CO 85.96% 85.26% 85.22%
Grand Total 85.55% 84.61% 84.53%
4 5
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 March 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 AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of Pioneer Community Energy.

Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.

Pioneer Community Energy’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about Pioneer Community Energy’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

We are not independent with respect to Pioneer Community Energy because we performed certain accounting services that impaired our independence.

Maher Accountancy
San Rafael, CA
May 4, 2023
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 2022/23 YTD
Amended
Budget
2022/23 YTD
Actual
2022/23 YTD
Amended
Budget
Variance
(Under) Over
2022/23
YTD
Actual/
Amended
Budget %
2022/23
Amended
Budget
2022/23
Amended
Budget
Remaining

ENERGY REVENUES
Energy Sales $ 160,134,922 159,260,088 $ 874,833 $ 101% 210,160,000 $ 50,025,078 $ Green100 Sales 23,350 20,604 88% (2,746) 30,000 9,396
Congestion Revenue Rights 5,827,598 5,765,190 62,408 101% 6,000,000 172,402 Less Uncollectible Accounts (2,150,326) (2,114,053) 98% 36,273 (2,837,000) (722,947) Total Operating Revenues 163,869,070 162,898,302 970,769 213,353,000 49,483,930

ENERGY EXPENSES
Power Supply 131,308,212 133,919,280 (2,611,068) 98% 177,984,000 46,675,788 OPERATING MARGIN 32,560,858 28,979,022 3,581,837 35,369,000 2,808,142

OPERATING EXPENSES
Administration
Compensation 418,163 484,689 (66,526) 86% 626,252 208,089 Contract services 96,063 475,994 (379,931) 20% 546,325 450,262 Operating expenses 365,959 390,256 (24,298) 94% 541,225 175,266 Total Administration expenses 880,185 1,350,939 (470,754) 65% 1,713,802 833,617 Finance
Compensation 550,842 574,148 (23,305) 96% 760,530 209,688 Contract services 314,322 463,475 (149,153) 68% 553,350 239,028 Operating expenses 230,434 229,487 947 100% 278,983 48,549 Total Finance expenses 1,095,598 1,267,110 (171,512) 86% 1,592,863 497,265 Power Procurement
Compensation 440,478 463,414 (22,937) 95% 617,886 177,408 Contract services 1,100,615 1,255,320 (154,704) 88% 1,485,426 384,811 Operating expenses 29,588 15,628 53% (13,960) 35,450 19,822 Total Power Procurement expenses 1,556,721 1,748,321 (191,600) 89% 2,138,762 582,041 Customer Care
Compensation 300,325 331,468 (31,143) 91% 441,957 141,632 Contract services 1,953,290 2,211,259 (257,969) 88% 2,935,012 981,722 Operating expenses 4,547 517 11% (4,030) 10,863 10,346
Total Customer Care expenses 2,254,132 2,547,274 (293,142) 88% 3,387,832 1,133,700 Marketing & Communications
Compensation 76,155 115,791 66% (39,636) 154,388 78,233 Contract services 387,587 407,863 (20,276) 95% 556,240 168,653 Operating expenses 145,830 347,288 (201,458) 42% 408,050 262,220 Total Marketing expenses 609,572 870,941 (261,370) 70% 1,118,678 509,106 Legislative & Regulatory
Compensation 350,269 359,987 (9,718) 97% 496,649 146,380 Contract services 154,900 265,356 (110,456) 58% 353,808 198,908 Operating expenses 3,938 2,177 55% (1,761) 5,250 3,073
Total Legislative expenses 507,346 629,280 (121,935) 81% 855,707 348,361 Programs
Compensation 91,740 53,125 58% (38,615) 122,320 69,195
Contract services 79,273 - (79,273) 0% 97,000 97,000
Operating expenses 5,625 1,040 18% (4,585) 6,500 5,460
Total Programs expenses 176,638 54,165 (122,472) 31% 225,820 171,655 Total Operating Expenses 8,590,504 6,957,718 (1,632,785) 81% 11,033,464 4,075,746

NON-OPERATING REVENUES (EXPENSES)
Investment gains (losses) 56,250 196,402 349% 140,152 75,000 (121,402) Miscellaneous income - 15,000 15,000 - (15,000)
Term Loan Debt Service (684,641) (712,502) 96% 27,861 (950,000) (265,359) Additional Term Loan Principal (2,100,000) (2,100,000) - (2,100,000) - Line/Letter of Credit Fees (171,287) (187,500) 16,213 91% (250,000) (78,713) Financial Security Requirement - 356,000 0% (356,000) (356,000) (356,000) Nonoperating revenues (expenses), net (3,299,752) (2,744,526) 555,226 (3,581,000) (836,474) Total Expenses (Energy, Operating, Non-Operating) 145,809,536 141,010,456 (4,799,079) 192,598,464 51,588,008 Contribution to/(from) Reserves $ 17,088,766 $ 22,858,614 $ 5,769,848 $ 20,754,536 $ (2,104,078)

BUDGETARY COMPARISON SCHEDULE
Nine Months Ended March 31, 2023

PIONEER COMMUNITY ENERGY

CCA FUND

Page 1 of 2 ends

Staff Report – Item 1c
To: The Governing Board
From: Cianan Mauk, Power Supply Contracts Manager
Item 1c: Adopt Resolution Approving 2022 Load Management Order Instituting Rulemaking 21- OIR-03 (OIR)
Date: 5/25/2023

RECOMMENDATION
Adopt a Resolution Approving Plan to Delay Compliance with Uploading Time Varying Rates to the Market Informed Demand Automation Server (MIDAS) Database.

BACKGROUND
In an effort to better align electricity consumption with generation times, in January of 2023 the California Energy Commission (CEC) adopted new load management standards. These new standards place two requirements on Pioneer Community Energy (Pioneer). First, Pioneer must develop a marginal cost-based rate regime which would charge participating ratepayers for the real time cost of service, or (if that is too burdensome), to implement other programs to align ratepayer load with wholesale costs. Second, Pioneer must upload its time-dependent rates to the CEC’s Market Informed Demand Automation Server (MIDAS) database.

While the plan outlining how Pioneer plans to comply with the first requirement is not due until April 1, 2024, the regulation does require the upload of time-dependent rates by July 1, 2023.

The July 1, 2023, timelines has proved to be especially burdensome. The CEC did not anticipate the complexity involved in creating a uniform set of data protocols which led to significant delays. Testing of the upload protocols has only recently been opened, with no clear message from the CEC indicating when the MIDAS upload protocols will be ultimately finalized.

This delay has impacted Pioneer’s ability to upload rates into MIDAS. Pioneer currently does not have the capability to prepare, test, validate, and upload the rates to comply with the OIR. Accordingly, we have been in discussions with Calpine to handle this requirement. However, without the finalized protocols, they are unable to provide us with a timeline of when they can comply with the order. In order to comply with the deadline of the OIR we need to postpone the compliance date until after the completion of the data upload protocols plus a reasonable timeframe for Calpine to prepare, test, and validate the uploaded rates.

In searching for answers and solutions, Staff has worked with CalCCA and other impacted Community Choice Aggregators (CCAs) along with coordinating with the Investor-Owned Utilities (IOUs) to convince the CEC that their current timeline for implementation is not achievable. Currently, the CEC has not indicated it intends to move the July 1 deadline and their counsel has stated that CCAs must follow the process laid out in the regulatory action if we want to extend the deadline to comply.

Per the regulations, Pioneer is required to request our Rate Approving Body (Pioneer Board) to approve a plan to delay compliance with the regulation. The current plan is to request a delay in compliance for twelve months after the finalization of the MIDAS data upload protocols. The details of the plan will be worked out at a later time before the compliance deadline. This timeline was developed in coordination with fellow impacted CCAs and IOUs.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 1c Agenda Date: 5/25/2023

Page 2 of 2 ends

ANALYSIS & DISCUSSION
Load management is a useful tool in helping to balance supply and demand on the grid in order to prevent rolling blackouts and keep costs down. The goal of the MIDAS database is to provide third parties and ratepayers with tools to shift their energy usage to times when there is more than enough supply to meet demand. Due to Pioneer’s commitment to low cost, we have an interest in seeing this regulation succeed.

Unfortunately, the CEC did not appreciate the complexity of designing and implementing the MIDAS database.

To ensure that the database effort is successful and does not run into problems at launch, it is necessary to give the CEC and all impacted Load Serving Entities (LSEs) adequate time to design, test, and implement this database.

The plan given here for adoption is flexible enough to ensure that process is not rushed in order for this initiative to be a success.

FISCAL IMPACT
None.

ATTACHMENTS

1. Adopt a Resolution Approving Plan to Delay Compliance with Uploading Time Varying Rates to the Market Informed Demand Automation Server Database.

Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held May 25, 2023, by the following vote on roll call:

Ayes:

Noes:

Absent:

Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, on January 25, 2023, in Docket Number 21-OIR-03 the California Energy Commission (CEC) adopted Load Management Standards (CCR Title 20 §§ 1621-1625) that apply to Pioneer Community Energy in addition to California’s larger investor-owned utilities, publicly-owned utilities, and community choice aggregators (CCAs); and

WHEREAS, the purpose of these load management standards are to promote the development of real-time rates that could vary hourly or sub-hourly to better reflect the energy costs and environmental effects of electric generation; and

In the matter of: Adopt a Resolution Approving
Plan to Delay Compliance with Uploading Time
Varying Rates to the Market Informed Demand
Automation Server Database.

WHEREAS, the CEC has set a goal of uploading existing electric rates into its Market-Informed Demand Automation Server (MIDAS) Database by July 1, 2023, as a first step of allowing both customers and load-serving entities to begin to get acquainted with and use real-time rate structures (CCR Title 20 §1623.1(c)); and

WHEREAS, despite the extensive efforts of Pioneer Community Energy, the CEC, the California Community Choice Association (Cal-CCA), and other affected entities there is unanimous agreement among the affected load-serving entities that it is not feasible to meet the July 1, 2023, deadline for uploading rates to MIDAS; and
WHEREAS, Pioneer Community Energy staff have identified numerous implementation problems including but not limited to the lack of final, standardized protocols for using MIDAS; the complexity of uploading numerous rate structures and their variations to MIDAS; continually changing MIDAS functional requirements; and concerns that MIDAS may not be scalable to handle the large amounts of data required; and
WHEREAS, the CEC continues to propose that Pioneer Community Energy should be responsible not only for uploading its own electric rates to MIDAS but also be responsible for uploading to MIDAS the Pacific Gas and Electric rates paid by Pioneer Community Energy customers in violation of the CEC’s adopted regulations; and WHEREAS, while the investor-owned utilities such as Pacific Gas and Electric are allowed to recover the cost of implementing Load Management Standards through rates approved by the California Public Utilities Commission (CPUC) there is no comparable cost-recovery mechanism for CCAs such as Pioneer Community Energy raising competitiveness issues; and WHEREAS, the Governing Board of Pioneer Community Energy as the governing body of Pioneer Community Energy must develop a compliance plan for implementing the Load Management Standards and has the authority to delay implementation if it finds that doing so can cause extreme hardship; result in reduced system reliability or efficiency; and/or would not be technologically feasible or cost-effective (CCR Title 20 §§ 1623.1(b)-(c)).

BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:

1. The above recitals are true and correct.

2. That the Governing Board of Pioneer Community Energy adopt the Interim Load Management Standard Compliance Plan attached to this Resolution.

3. That the Governing Board of Pioneer Community Energy finds that it is neither technologically feasible nor cost-effective for Pioneer Community Energy to upload its rates to MIDAS and that a delay in meeting the July 1, 2023, deadline is warranted.

Resolution 2023-__
page 2

4. That the Governing Board of Pioneer Community Energy directs Pioneer Community Energy to continue to work with the CEC, Cal-CCA, and other interested parties to develop feasible, cost-effective, and competitively fair load management standards.

5. That the Executive Director transmit a copy of this Resolution and the attached plan to the Executive Director of the CEC.

Exhibit A: Pioneer Community Energy Interim Load Management Standard Compliance Plan Resolution 2023-__
page 3

EXHIBIT A

PIONEER COMMUNITY ENERGY

INTERIM LOAD MANAGEMENT STANDARD

COMPLIANCE PLAN
Adopted by Pioneer Governing Board Resolution _____
May 25, 2023
I. PURPOSE
In Docket Number 21-OIR-03 the California Energy Commission (CEC) adopted Load Management Standards (CCR Title 20 §§ 1621-1625) applicable to Pioneer Community Energy. The purpose of this plan is to identify the steps and activities that Pioneer will need to undertake in order to prepare a Final Compliance Plan by the current completion date of October 2024. As several of the CEC’s requirements for the Load Management Standard (LMS) have due dates prior to the filing date of the Final Compliance Plan, this interim plan also addresses how Pioneer will meet those requirements.

All dates are subject to change by either the CEC or the Governing Board of Pioneer Community Energy (Governing Board) upon either entity making the necessary findings.

II. UPLOADING PIONEER COMMUNITY ENERGY RATE INFORMATION TO MIDAS a. Twelve months after all MIDAS rate upload requirements are finalized, locked-in and published by the CEC; Ratepayer Identification Number (RIN) protocols are finalized; upload and access problems with MIDAS are resolved to allow easy entry of data; and the MIDAS system is proven scalable to the amount of data that will need to be input and processed Pioneer will upload its electric energy generation rates to MIDAS.
b. Pacific Gas and Electric will remain responsible for uploading its transmission and distribution rates to MIDAS.

III. DEVELOPMENT OF STATE-WIDE ACCESS TO THE MIDAS SYSTEM a. Pioneer will provide its customers with their Ratepayer Identification Numbers (RIN) on billing statements and on-line accounts by April 2024, unless delayed by;
i. The CEC failing to resolve RIN protocols in time to meet the deadline; ii. The inability to coordinate and resolve RIN issues between Pioneer and Pacific Gas and Electric.
iii. The inability of the combined Pacific Gas and Electric and Pioneer Community Energy billing process to handle the assignment of RIN numbers.

b. Pioneer will work with all other Load-Serving Entities (LSEs) subject to the LMS requirements to make the MIDAS system readily accessible to all customers by October 2024. As this requires a “single statewide standard tool for authorized rate data access to third parties that is compatible with each of those entities’ systems” Pioneer will look to the CEC to oversee development of this tool. This tool shall;

1. Incorporate cybersecurity measures;

2. Minimize enrollment barriers;

3. Be accessible in a digital, machine-readable format according to best practices and standards;

4. Allow access to authorized third-parties;

5. Allow third-parties to transfer customers to new rates “in the next billing cycle according to [LSE] standard procedures.”
c. Unless Pioneer develops a rate comparison tool for customers eligible for multiple rates, Pioneer is not required to incorporate this feature into the MIDAS system.

IV. DEVELOP A FINAL COMPLIANCE PLAN BY APRIL, 2024
a. Pioneer shall prepare a Final Compliance Plan for submission to the Governing Body of Pioneer Community Energy by no later than April, 2024, showing how it will meet LMS program requirements. This plan will be;
i. Consistent with Section 1623.1 of the regulations;
ii. Meet the goals of encouraging off-peak usage, encourage control of seasonal and peak loads to improve system reliability and efficiency, lessen/delay need for new generation, reduce fossil-fuel and GHG emissions; and
iii. Evaluate cost-effectiveness, equity, technical feasibility, benefits to the grid, and benefits to the customer.

V. DEVELOP AND OFFER REAL-TIME ELECTRIC RATES BY JULY, 2025 a. Pioneer shall develop at least one real-time (i.e. hourly or sub-hourly) electric rate for each customer class and offer it to their customers. b. If Pioneer determines that real-time rates are neither feasible nor cost-effective it shall propose alternative proposals for demand flexibility such as interruptible rates, demand response programs, etc.

VI. GOVERNING BOARD OF PIONEER COMMUNITY ENERGY APPROVAL a. Pioneer will present to the Governing Board of Pioneer Community Energy a Final Compliance Plan by no later than April, 2024.
b. The Governing Board of Pioneer Community Energy will adopt the Compliance Plan in a publicly noticed meeting no later than 60 days after submission to the Governing Board of Pioneer Community Energy.
c. No later than 30 days after Governing Board of Pioneer Community Energy approval, the Executive Director shall transmit the Final Compliance Plan to the CEC.
d. Any real-time rates or other demand response programs developed as part of the LMS process must be approved by the Governing Board of Pioneer Community Energy in the same manner and process as all other Pioneer rates.

VII. COST TRACKING AND RECOVERY
a. Pioneer will develop the necessary accounting methods to track the costs of complying with the CEC’s LMS requirements.
b. Pioneer will seek recovery of these costs from all applicable sources including the CEC.

VIII. GOVERNING BOARD OF PIONEER COMMUNITY ENERGY
a. Nothing in this plan overrides or supersedes the Governing Board’s sole authority as the governing and rate-making body of Pioneer Community Energy. b. Nothing in this plan implies any jurisdictional authority of the CEC over Pioneer Community Energy rates and rate programs.
c. As allowed by statute and in the CEC regulations the Governing Board has the authority and is allowed to modify any deadline or make necessary program changes if implementation of the LMS requirements would; i. Impose extreme hardship on Pioneer Community Energy; ii. Reduce system reliability or efficiency; and/or
iii. Not be technologically feasible or cost-effective.

Page 1 of 4 ends

Staff Report – Item 1d
To: The Governing Board
From: Kirstin Kolpitcke, Legislative and Regulatory Manager Item 1d: Receive and Approve the Revised 2023 Pioneer Legislative Policy and Platform Date: 5/25/2023

RECOMMENDATION
Receive and approve the revised 2023 Pioneer Legislative Policy and Platform that includes the following updates: added AB 50 (Wood), AB 538 (Holden), AB 557 (Hart), AB 643 (Berman), SB 83 (Wiener), SB 529 (Gonzalez), and SB 537 (Becker) to “support” positions, and added AB 1373 (Garcia) to “oppose unless amended.”

BACKGROUND
Pioneer Community Energy (Pioneer) develops a Legislative Policy and Platform (Legislative Platform) annually to provide guidance and direction for Pioneer staff (staff) to respond in a timely and nimble manner, as changes occur quickly in a dynamic legislative environment. After identifying bills that fit the descriptions of the legislative policy and platform objectives mentioned below, staff ranks the bills as “support,” “watch,” or “oppose” based on how they would impact Pioneer.

After reviewing the Legislative Platform together with the Pioneer Board in the April 16, 2023, Board meeting, the Board instructed staff to support AB 625 (Aguiar-Curry), AB 704 (Jim Patterson), AB 998 (Connolly), SB 410 (Becker), and SB 488 (Alvarado-Gil).

Due to the large numbers of bills that were introduced, CalCCA analyzed, voted on, and approved positions after the last board meeting. As a result, Pioneer is adding the following bills to our 2023 Pioneer Legislative Policy and Platform:
• Support- AB 50 (Wood), AB 538 (Holden), AB 557 (Hart), AB 643 (Berman), SB 83 (Wiener), SB 529 (Gonzalez), and SB 537 (Becker)
• Oppose unless amended- AB 1373 (Garcia)

ANALYSIS & DISCUSSION
Pioneer developed the 2022 Pioneer Legislative Policy and Platform based on legislation that enables, protects, and enhances Pioneer’s priorities and ability to serve its customers as determined by the Governing Board of Pioneer.

Pioneer’s priorities are:
• To maintain local control for the purpose of preserving the ability to self-procure its power resources, and to self-determine its rates and the energy programs it offers to its residents, businesses, and the communities it serves, through the mechanisms of local governance • To provide lower and more stable rates for its customers • To provide economic benefits to its customers and the communities it serves • To have maximum flexibility to utilize and develop local resources for economic, social and environmental benefit
Plf)NEER

COMMUNITY ENERGY
Agenda Item: 1d Agenda Date: 5/25/2023

Page 2 of 4 ends

Pioneer will support legislation which enables, protects, and enhances the development and expansion of Community Choice Aggregation (CCA) programs, and that supports CCA independence in procurement, program deployment, management and decision making.

All relevant bills were analyzed, summarized, and generally ranked as Support, Watch, or Oppose by staff. The following key bills are the highest priority Assembly and Senate bills introduced this session for Pioneer and have been designated a position of Support, Oppose or Watch, and sometimes denoting, Unless Amended.

Support: Pioneer will support in various ways that may include co-sponsorship, writing letters of support, lobbying other market participants to support, support through California Community Choice Association (CalCCA), requesting Member Agencies to offer their support, etc.

Oppose: Pioneer will oppose in various ways that may include writing letters of opposition, lobbying other market participants to oppose, oppose through CalCCA, requesting Member Agencies to oppose, etc.

Watch: Pioneer will monitor and continue to watch, offer support, or oppose depending on the direction of the bill.

The updated Legislative Platform includes the following additions and updates:

New Additions to the Legislative Platform
AB 50 Wood Establishes interim timelines for
large electrical corporations to
provide customer energization
following a written commitment
to service by the utility. Requires
that a failure to energize
customers by the date provided
on a commitment to serve will
entitle a customer to a utility bill
credit. Requires the CPUC to
determine criteria for timely
service by 2025 that may replace
or revise interim timelines.

Assembly
Appropriations
High; Support
AB 538 Holden Delegates to the CEC the ability
to authorize the transformation
of the CAISO into a multistate
regional transmission system if
specified requirements are
satisfied. Prohibits a California
electrical transmission facility
owner, a retail seller of
electricity, or a local publicly
owned electric utility from joining
a multistate regional
transmission system
organization, if specified
requirements are not met.

Assembly
Appropriations
High; Support
Agenda Item: 1d Agenda Date: 5/25/2023

Page 3 of 4 ends

AB 557 Hart Eliminates the sunset date on
provisions of law allowing local
agencies to use teleconferencing
without complying with specified
Brown Act requirements during a
proclaimed state of emergency.

Assembly Floor High; Support
AB 643 Berman Requires the CPUC to commence
the consideration of adopting
mechanisms for distributed
renewable generation
interconnections to enforce
timelines, reduce administrative
burden, and provide
transparency and certainty to
customers. Requires the CPUC to
create process improvements to,
and potential timelines for,
Electric Rule 21 to address
certain types of delays.

Assembly
Appropriations
High; Support
AB 1373 Garcia Provides significant policy
changes to electricity market
structure and regulations
proposed by the Newsom
Administration’s 2023 budget
energy trailer bill, including the
creation of a central procurement
entity at the Department of
Water Resources; capacity
payments for load-serving
entities and local publicly owned
electric utilities that are deficient
in their reliability obligations and
DWR’s Strategic Reliability
Reserve was used to meet their
reliability needs; and CPUC
enforcement and subsequent
penalty authority of load serving
entities’ integrated resource
plans.

Assembly
Appropriations
High; Oppose
unless amended
SB 83 Wiener Requires an electrical corporation
to interconnect a development
project within eight weeks of
receiving a notification from a
development project applicant
that the development project is
interconnection ready. Requires
the electrical corporation to
compensate a development
project applicant for failing to
meet the 9-week time period.

Senate
Appropriations
High; Support
Agenda Item: 1d Agenda Date: 5/25/2023

Page 4 of 4 ends

SB 529 Gonzalez Requires the CEC to establish a
program to fund electric vehicle
car share sites at affordable
housing facilities.

Senate
Appropriations
Suspense File
High; Support
SB 537 Becker Expands the circumstances of
“just cause” under the Brown Act
to apply to the situation in which
an immunocompromised child,
parent, grandparent, or other
specified relative requires the
member to participate remotely.
authorize the legislative body of
a multijurisdictional, cross-county
agency to use alternate
teleconferencing provisions if the
eligible body adopts an
authorizing resolution.

Sente Judiciary
5/2
High; Support

FISCAL IMPACT
None.

ATTACHMENTS
2023 Pioneer Legislative Policy and Platform
2023 State
Legislative Policy
and Platform
Plf)NEEA

COMMUNITY ENERGY
i | Page Pioneer State Legislative Policy and Platform 2023 Pioneer Community Energy Governing Board
Alice Dowdin Calvillo, City of Auburn, Chair
John Hidahl, County of El Dorado, Vice Chair
Wes Heathcock, City of Colfax
Tom Ivy, City of Grass Valley
Holly Andreatta, City of Lincoln
Amanda Cortez, Town of Loomis
Gary Petersen, City of Nevada City
Jim Holmes, County of Placer
Suzanne Jones, County of Placer
David Yarbrough, City of Placerville
Greg Janda, City of Rocklin
Alternates:

Rachel Radell-Harris, City of Auburn
Kim Douglass, City of Colfax
Lori Parlin, County of El Dorado
Jan Arbuckle, City of Grass Valley
Dan Karleskint, City of Lincoln
Danny Cartwright, Town of Loomis
Bonnie Gore, County of Placer
John Clerici, City of Placerville
David Bass, City of Rocklin
ii | Page Pioneer State Legislative Policy and Platform 2023 Table of Contents
Pioneer Community Energy Governing Board.....................................................................i Pioneer Community Energy Legislative Policy and Objectives ....................................... 1 Pioneer Community Energy Legislative Policy ............................................................... 1 Platform Objectives for 2023............................................................................................ 1 2023 Legislation ..................................................................................................................... 3 2023 Priority Legislation Summary: ............................................................................ 3 Highest Priority Active Bills Further Detail ....................................................................15 AB 50, Wood (D) – Multistate regional transmission system organization:
membership ....................................................................................................................15 AB 538, Holden (D) – Public utilities: timely service: customer energization.....15 AB 557, Hart (D) – Open meetings: local agencies: teleconferences...................15 AB 625, Aguiar-Curry (D) – Forest biomass: management: emissions: energy 16 AB 643, Berman (D) – Electric Rule 21: interconnection: distributed renewable generation .......................................................................................................................16 AB 704, Jim Patterson (R) – Energy: building standards: photovoltaic requirements...................................................................................................................17 AB 998, Connolly (D) – Biomass energy facilities: State Energy Resources Conservation and Development Commission: report ..............................................17 AB 1373, Garcia (D) – Energy .....................................................................................18 SB 83, Wiener (D) – Public utilities: electrical distribution grid: interconnection ..........................................................................................................................................18 SB 410, Becker (D) – Powering Up Californians Act................................................19 SB 488, Alvarado-Gil (D) – California Renewables Portfolio Standard Program:
bioenergy projects: community choice aggregators................................................19 SB 529, Gonzalez (D) – Electric vehicle sharing services: affordable housing facilities ............................................................................................................................20 SB 537, Becker (D) – Open meetings: multijurisdictional, cross-county agencies: teleconferences ............................................................................................20 Spot Bills .............................................................................................................................20 Senate..............................................................................................................................21 Assembly..........................................................................................................................21 Appendix A: 2023 Legislative Session Calendar ..............................................................22 Appendix B: Table of Acronyms..........................................................................................24 1 | Page Pioneer State Legislative Policy and Platform 2023 Pioneer Community Energy Legislative Policy and Objectives The purpose of this policy and its objectives is to provide guidance and direction for Pioneer staff to allow Pioneer staff to respond in a timely and nimble manner, as changes occur in a dynamic legislative environment.

Pioneer Community Energy Legislative Policy
Pioneer Community Energy supports legislation that enables, protects, and enhances Pioneer’s priorities and ability to serve its customers as determined by the Governing Board of Pioneer Community Energy.

Pioneer’s priorities are:
• To maintain local control for the purpose of preserving the ability to self-procure its power resources, and to self-determine its rates and the energy programs it offers to its residents, businesses, and the communities it serves, through the mechanisms of local governance
• To provide lower and more stable rates for its customers • To provide economic benefits to its customers and the communities it serves • To have maximum flexibility to utilize and develop local resources for economic, social, and environmental benefit
Pioneer will support legislation which enables, protects, and enhances the development and expansion of Community Choice Aggregation (CCA) programs, and that supports CCA independence in procurement, program deployment, management and decision making.

Pioneer will support 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 will support legislation which promotes a neutral, fair, and competitive energy market. Pioneer will oppose legislation that jeopardizes Pioneer’s independence to self-procure its power resources, determine its rates and the energy programs it provides to its customers in the present, or could restrict its independence to do so in the future.

Platform Objectives for 2023
• Protect and enhance local control and ability to self-govern, self-procure power resources, determine rates and energy programs
• Ensure CCA inclusion in market opportunities and programs • Prevent development of new, or increased non-bypassable charges from legislative mandates or policy direction, or other costs to Pioneer or its customers that do not provide commensurate benefit, and to phase out or eliminate existing non-bypassable charges that do not provide commensurate benefit
2 | Page Pioneer State Legislative Policy and Platform 2023 • Protect and enhance procurement independence and local control of CCA governing boards
• Protect and enhance independence to administer energy efficiency, integrated distributed energy resources, and to receive the renewable energy credits and other benefits from the administration of such programs • Protect and enhance the ability to develop local renewable generation from local sources including but not limited to biomass, waste-to-energy, and bio-methane generation resources • Reform IOU procurement practices to minimize stranded load and mitigate non-bypassable charges to CCA customers
• Protect, support, and participate in the development of energy policy that is balanced, inclusive, and fair for all load serving entities and the customers they serve
3 | Page Pioneer State Legislative Policy and Platform 2023 2023 Legislation
The following bills have been identified to be of interest or potential interest to Pioneer Community Energy. Each bill has been designated a Priority of High, Medium, or Low and a Position of Support, Oppose or Watch, and sometimes denoting, Oppose Unless Amended.

Watch: Pioneer will monitor and continue to watch, offer support, or oppose depending on the direction of the bill.
2023 Priority Legislation Summary:

Active Bills to Support or Oppose:

Bill Author Description Status Priority/
Position
AB 50 Wood Establishes interim timelines for large
electrical corporations to provide
customer energization following a
written commitment to service by the
utility. Requires that a failure to
energize customers by the date
provided on a commitment to serve
will entitle a customer to a utility bill
credit. Requires the CPUC to
determine criteria for timely service by
2025 that may replace or revise
interim timelines.

Assembly
Appropriations
High;
Support
AB 538 Holden Delegates to the CEC the ability to
authorize the transformation of the
CAISO into a multistate regional
transmission system if specified
requirements are satisfied. Prohibits a
California electrical transmission
facility owner, a retail seller of
electricity, or a local publicly owned
electric utility from joining a multistate
regional transmission system
organization, if specified requirements
are not met.

Assembly
Appropriations
High;
Support
4 | Page Pioneer State Legislative Policy and Platform 2023 AB 557 Hart Eliminates the sunset date on
provisions of law allowing local
agencies to use teleconferencing
without complying with specified
Brown Act requirements during a
proclaimed state of emergency.

Assembly Floor High:

Support
AB 625 Aguiar-CurryAmong other things, this bill extends the BioMAT program until the
implementation of AB 843 and
adequate time is provided to
community choice aggregators to
participate in the program.

Assembly
Appropriations
Suspense File
High;
Support
AB 643 Berman Requires the CPUC to commence the
consideration of adopting mechanisms
for distributed renewable generation
interconnections to enforce timelines,
reduce administrative burden, and
provide transparency and certainty to
customers. Requires the CPUC to
create process improvements to, and
potential timelines for, Electric Rule 21
to address certain types of delays.

Assembly
Appropriations
High;
Support
AB 704 Jim
Patterson
Requires any residential construction
intended to repair, restore, or replace
a residential building that was
damaged or destroyed as a result of a
disaster in an area in which the
Governor has declared a state of
emergency to comply with the state’s
requirement for photovoltaic systems
that were in effect at the time the
building was originally constructed, if
certain conditions are met with respect
to the building owner's income,
insurance coverage, and the location
and square footage of the
construction.

Assembly
Appropriations
Suspense File
High;
Support
AB 998 Connolly Requires the CEC to report on utility-scale biomass combustion facilities and specifies information the report must
contain.

Assembly
Appropriations
High;
Support
5 | Page Pioneer State Legislative Policy and Platform 2023 AB 1373 Garcia Provides significant policy changes to
electricity market structure and
regulations proposed by the Newsom
Administration’s 2023 budget energy
trailer bill, including the creation of a
central procurement entity at the
Department of Water Resources;
capacity payments for load-serving
entities and local publicly owned
electric utilities that are deficient in
their reliability obligations and DWR’s
Strategic Reliability Reserve was used
to meet their reliability needs; and
CPUC enforcement and subsequent
penalty authority of load serving
entities’ integrated resource plans.

Assembly
Appropriations
High;
Oppose
unless
amended
SB 83 Wiener Requires the CPUC to establish
maximum energization time periods by
when an electrical corporation would
be required to energize a development
project. Requires electrical
corporations to energize development
projects within the maximum time
period established by the CPUC.

Requires electrical corporations to
compensate development projects for
failing to meet the deadline.

Senate
Appropriations
High;
Support
SB 410 Becker Requires the CPUC to establish a
working group by March 1, 2024, to
propose processes to improve the
ability of electrical corporations to be
informed of needed increases in
distribution system capacity. Requires
the CPUC to establish time periods for
interconnection projects and provides
for cost recovery processes from
ratepayers for these projects.

Senate
Appropriations
High;
Support
SB 488 Alvarado-GilAuthorizes 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. Provides that costs of
any contract procured by a CCA are
recoverable from all customers on a
nonbypassable basis.

Failed passage
in Senate
Energy, Utilities,
and
Communications
by a vote of 7-2
High;
Support
6 | Page Pioneer State Legislative Policy and Platform 2023 SB 529 Gonzalez Requires the CEC to establish a
program to fund electric vehicle car
share sites at affordable housing
facilities.

Senate
Appropriations
Suspense File
High;
Support
SB 537 Becker Allows a board, commission, or
advisory body of a multijurisdictional,
cross county, local agency with
appointed members that is subject to
the Brown Act to use alternate
teleconference provisions if specified
conditions are met. Requires at least a
quorum of members of the legislative
body to participate from locations
within the boundaries of the territory
over which the local agency exercises
jurisdiction, require the legislative
body to identify in the agenda each
member who plans to participate
remotely and to include the address of
the publicly accessible building from
each member will participate via
teleconference and prohibits a member
from participating remotely pursuant
to these provisions unless the remote
location is the member’s office or
another location in a publicly
accessible building and is more than
40 miles from the location of the in-person meeting. Repeals these alternative teleconferencing provisions
on January 1, 2028.

Senate Floor High;
Support
7 | Page Pioneer State Legislative Policy and Platform 2023 Active Bills to Watch:

AB
344
Wood Authorizes electrical corporations,
electric service providers, and
community choice aggregators to
jointly enter into agreements to
procure electricity generated from
offshore wind facilities.

Assembly
Appropriations
Medium;
Watch
AB
593
Haney Requires the CEC to identify and
implement an emission reduction
strategy, with milestones, for the
building sector to support achieving
the state's greenhouse gas
emission reduction goals, no later
than July 1, 2025.

Assembly
Appropriations
Suspense File
Medium;
Watch
AB
817
Pacheco Allows a subsidiary body (advisory
capacity only) of a local agency to
use teleconferencing without
posting agendas at each
teleconference location, identifying
each teleconference location in the
notice and agenda, making each
teleconference location accessible
to the public, and requiring at least
a quorum of the subsidiary body to
participate from within the local
agency’s jurisdiction.

Assembly Local
Government
Medium;
Watch
AB
914
Friedman Establishes a two-year time limit,
from the date the application is
submitted, for a lead state agency
to complete California
Environmental Quality Act (CEQA)
review and approve or deny an
application for an electrical
infrastructure project.

Assembly
Appropriations
Medium;
Watch
AB
982
Villapudua Eliminates the collection of money
from electrical utility ratepayers
that funds certain “public purpose
programs,” such as energy
efficiency and clean energy
research. Excludes FERA and CARE
program from the definition of
public purpose programs.

Assembly
Appropriations
Suspense File
Medium:

Watch
AB
1172
Calderon Requires the CEC, as part of the
2025 integrated energy policy
report, to evaluate various fusion
technologies, and to analyze the
Assembly
Appropriations
Medium;
Watch
8 | Page Pioneer State Legislative Policy and Platform 2023 feasibility of using nuclear fusion in
the state.

AB
1358
Muratsuchi Requires the CPUC, CEC and CARB
to include in an upcoming joint
report a statewide transmission
plan to facilitate the timely
attainment of the policy and the
targets of the California Renewables
Portfolio Standard Program.

Assembly
Appropriations
Medium;
Watch
AB
1533
Utilities
and
Energy
Serves as the Utilities and Energy
Committee’s omnibus code clean-up measure. Moves the statutory requirements for reports by the
CPUC to a more suitable code
section, sunsets CPUC reporting
requirements on certain programs
once the programs have ended,
reintroduces provisions chaptered
out in 2022, and provides code
cleanup in various other sections.

Assembly
Appropriations
Medium;
Watch
AB
1538
Muratsuchi Establishes the Clean Energy
Reliability Program to provide
incentive payments to qualifying
load-service entities that use
eligible resources to exceed their
clean energy capacity requirements
or targets, within or at the end of a
given compliance period. (CPA
sponsored).

Assembly
Appropriations
Medium;
Watch
AB
1623
Muratsuchi Requires the CPUC, or before June
30, 2024, to submit a report
assessing the regulatory barriers, if
any, to the rapid deployment of
energy storage resources.

Assembly
Appropriations
Medium;
Watch
SB 57 Gonzalez Requires an electrical corporation,
local publicly owned electric utility,
water corporation, or local agency
that owns a public water system to
postpone the disconnection of a
customer's residential services for
nonpayment of a delinquent
account when the temperature will
be above or below specified
temperatures within the utility's
service area during the 24 hours
after that service disconnection
would occur. Requires utilities to
Senate Energy,
Utilities, and
Communications
Medium;
Watch
9 | Page Pioneer State Legislative Policy and Platform 2023 notify customers of this
requirement. Requires the CPUC to
establish a citation program for
utilities that violate the
requirement.

SB
319
McGuire Requires the CPUC and CEC to
review the memorandum of
understanding related to resources
and transmission planning and a
related workplan to ensure the
memorandum and workplan reflect
the coordination needed to help the
state's energy goals. Requires the
CEC, CPUC, and CAISO to jointly
develop an expediting permit
roadmap. Requires the CPUC to
require each electrical corporation
to annually review its long-term
transmission infrastructure needs
for the subsequent 10 years.

Senate
Appropriations
Medium;
Watch
SB
420
Becker Allows transmission projects,
identified by an agency chosen by
the Governor, to be necessary for
reliability and to meet the state’s
clean energy goals, to become
environmental leadership
development projects eligible for
California Environmental Quality Act
(CEQA) streamlining. Directs the
CPUC to streamline its Certificate of
Public Convenience and Necessity
review if CAISO has already
identified that project to be
necessary.

Senate
Appropriations
Medium;
Watch
SB
507
Gonzalez Establishes a goal of putting at
least 8,000,000 zero-emission
vehicles on California roads by
2030 for purposes of the statewide
assessment and expands the scope
of the CEC assessment of the
state’s need for electric vehicle
charging infrastructure.

Senate
Appropriations
Suspense File
Medium;
Watch
SB
527
Min Requires the CPUC to develop and
supervise the administration of the
Neighborhood Decarbonization
Program. Requires the CPUC to
develop the roles, responsibilities,
Senate
Appropriations
Medium;
Watch
10 | Page Pioneer State Legislative Policy and Platform 2023 timelines, and processes for
determining whether gas service
may be discontinued to one or
more gas customers as a part of
the program and limit the scope of
the program to no more than 15
pilot projects across the state that
affect no more than 1% of each gas
corporation’s customers. Authorizes
a gas corporation to cease
providing service in an area within
its service territory where a pilot
project authorized under the
program has been implemented if
the commission determines that
adequate substitute energy service
is reasonably available.

SB
619
Padilla Requires facilities eligible to be
certified by the CEC to include
electrical transmission lines
carrying electricity from certain
generation facilities regardless of
whether the electricity is carried to
a point of junction with any
interconnected electrical
transmission system. Authorizes
the CEC to consider whether an
applicant certifies that a capital
investment of at least $250 million
will be made over a period of five
years.

Senate
Appropriations
5/15
Medium;
Watch
11 | Page Pioneer State Legislative Policy and Platform 2023 2022 Bills Signed by Governor and Chaptered by the Secretary of State SB
1109
Caballero Extends to December 31, 2023, the
electrical corporations’ obligation to
collectively procure their proportionate
share of 125 megawatts of cumulative
rated generating capacity from existing
bioenergy projects commencing operation
before June 1, 2013, through financial
commitments of five to 15 years.

Exempts a local publicly owned electric
utility that previously entered into a five-year financial commitment under certain conditions from complying with these
requirements. The bill would require any
incremental procurement of electricity
products from bioenergy resources by a
new contract or contract extension of five
years or longer in duration to be from a
resource that meets emission limits
equivalent to, or more stringent than, the
applicable best available retrofit control
technology. Requires those entities with a
contract to procure electricity generated
from biomass that expires or expired on
or before December 31, 2028, to seek to
amend the contract to include, or seek
approval for a new contract that includes,
an expiration date five years later than
the expiration date in the contract that
was operative in 2022.

Signed by
Governor
12 | Page Pioneer State Legislative Policy and Platform 2023 2022 Dead Bills
AB
1814
Grayson This CalCCA sponsored bill would have
allowed CCAs the same access as the
IOUs to future transportation
electrification funding and to file
applications for programs and
investments to accelerate widespread
transportation electrification to reduce
dependence on petroleum, meet air
quality standards, achieve various
climate goals.

Dead
AB
1956
Mathis This bill would have created a five-year
woody biomass rural county collection
and disposal pilot program. Funding
would have been awarded to
participating counties with a total
population of less than 250,000 for the
purpose of conducting community
collection days on which individuals could
dispose of woody biomass and other
source-separated biomass free of charge.

Counties awarded funding would have
been required to contract with a local
compost facility, mulch production
facility, or biomass conversion facility to
collect and to process or convert the
biomass in a way that resulted in less
greenhouse gas emitted than if the
biomass had been disposed of.

Dead
AB
2878
Aguiar-CurryThis bill would have established the
Forest Waste Biomass Utilization
Program and required the Natural
Resources Agency to facilitate integration
of recommendations for forest biomass
waste utilization in relevant, state
climate adaptation plans. This bill would
have required the CEC to prepare and
submit a report to the Legislature that
evaluates innovative bioenergy
technologies that utilize forest biomass
waste. This bill would have required the
state air board to include a methodology
to quantify the greenhouse gas and
short-lived climate pollutant emissions
from wildfire, pile burning, and forest
management activities.

Dead
13 | Page Pioneer State Legislative Policy and Platform 2023 SB 612 Portantino This CalCCA sponsored bill would have required the CPUC to require IOUs to
offer to CCAs and ESPs an allocation of
product attributes from legacy electrical
resources paid for through exit fees of
the departing load. The bill defined these
product attributes as requirements of the
RPS Program, RA, resources that do not
emit greenhouse gases, and other
attributes that have regulatory
compliance or other identified market
value.

Dead
SB 833 Dodd The bill would have required the CEC to
develop and implement a grant program
for local governments to develop
community energy resilience plans and
expedite permit review of distributed
energy resources by local governments.

The bill would have required a plan to
identify critical facilities, locations, and
facilities where microgrids or other
distributed energy sources could meet
local resilience needs, and potential
funding sources for implementing
projects in the plan.

Dead
SB 881 Min This bill would have required the CPUC to
require each LSE to undertake sufficient
procurement to achieve a diverse,
balanced, and reliable statewide portfolio
and realize specified electricity sector
greenhouse gas emissions reductions.

This bill would have authorized the CPUC
to assess penalties to LSEs that fail to
satisfy procurement obligations and
additional procurement to satisfy unmet
needs. Costs of additional procurement
would have been allocated to customers
of LSEs that failed to satisfy their
procurement obligations.

Dead
SB
1287
Bradford This bill would have required the posted
Financial Security Requirement (FSR)
amount, or demonstrated insurance
amount, at the time of registration by an
ESP or CCA to be no less than $500,000,
rather than the current amount of
$147,000. The bill would have also
required the CPUC to update the FSR for
ESPs and CCAs to instead include costs
Dead
14 | Page Pioneer State Legislative Policy and Platform 2023 for no less than 12 months of
incremental procurement incurred by the
provider of last resort, upon the
customers’ involuntary return. I I
15 | Page Pioneer State Legislative Policy and Platform 2023 Highest Priority Active Bills Further Detail
AB 50, Wood (D) – Multistate regional transmission system organization:
membership
Impact to Pioneer: Yes
This bill would require the California Public Utilities Commission (CPUC) to determine the criteria for timely service for electric customers, on or before January 1, 2025. Until such time that the CPUC determines the criteria, large electrical corporations would be required to deliver electric service within 90 days of issuing a written commitment to service customers seeking a new connection, and within 30 days of issuing a written commitment to serve for customers seeking upgrades to an existing connection.

This is a much broader issue that Pioneer may want to participate in since this issue could affect our territory in the near future if it is not addressed.

AB 538, Holden (D) – Public utilities: timely service: customer energization Impact to Pioneer: Yes
This bill would create a framework for the expansion of the California Independent System Operator (CAISO) to include additional transmission operators and utilities (also referred to as balancing authorities) from the Western states by modifying the process for appointment of governing board members.

Priority: High
Recommended Action/Position: Support. Expanding the operating footprint of the CAISO with its neighbors in the west would enable better collaboration, transparency, and integration across the western electrical transmission grid system allowing California and Pioneer to achieve its goals for renewable energy and greenhouse gas reduction faster and with less cost to electric ratepayers.

AB 557, Hart (D) – Open meetings: local agencies: teleconferences Impact to Pioneer: Yes
This bill would eliminate the sunset date on provisions of law allowing local agencies to use teleconferencing without complying with the Brown Act requirements during a proclaimed state of emergency.

Specifically, this bill would eliminate the January 1, 2024, sunset date on provisions of law authorizing a local agency’s legislative body to use teleconferencing for a public meeting without having to post agendas at each teleconference location accessible to the public and require at least a quorum of the legislative body to participate from within the local agency’s jurisdiction during a proclaimed state of emergency.
16 | Page Pioneer State Legislative Policy and Platform 2023 This bill would change the frequency with which a legislative body must make specified findings in order to continue to teleconference from every 30 days to every 45 days.

Priority: High
Recommended Action/Position: Support. This bill is part of a package of bills intended to address the restrictions and need for flexibility in the post-COVID era with regards to the Brown Act.

AB 625, Aguiar-Curry (D) – Forest biomass: management: emissions:
energy
Impact to Pioneer: Yes
This bill would establish the Forest Biomass Waste Utilization Program to develop an implementation plan to meet the goals and recommendations of specified statewide forest management plans and to develop a workforce training program to complement workforce needs associated with the implementation plan. The bill would require the submission of an annual report to the Legislature, beginning January 1, 2025, on the progress made on implementing the implementation plan.

This bill would require the Natural Resources Agency to facilitate the inclusion of recommendations for forest biomass waste utilization in state climate adaptation plans.

This bill would require the CEC to prepare and submit a report that evaluates innovative bioenergy technologies that use forest biomass waste and include in the 2025 edition of the integrated policy report, an assessment of the potential for forest biomass waste energy to provide firm renewable power.

This bill would require the state air board, in a report that assesses statewide greenhouse gas emissions associated with wildfire and forest management activities, to include a methodology to quantify the greenhouse gas and short-lived climate pollutant emissions from wildfire, pile burning, and forest management activities.

Finally, this bill would require the CPUC to continue the BioMAT program until implementation of the provisions authorizing CCAs to participate in the program has been resolved and adequate time is given to CCAs to participate in the program.

Priority: High
Recommended Action/Position: Support. Considering Pioneer’s desire to expand the use of biomass and extending the sunset date of the BioMAT Program, Pioneer staff will continue to support this bill and monitor as the session moves forward and take appropriate action as needed per our Legislative Policy and Platform.

AB 643, Berman (D) – Electric Rule 21: interconnection: distributed renewable generation
This bill would require the California Public Utilities Commission (CPUC) to commence consideration of adopting mechanisms for distributed renewable generation interconnections to enforce timelines, reduce administrative burden, and provide transparency and certainty to customers by March 31, 2024. This bill 17 | Page Pioneer State Legislative Policy and Platform 2023 would require the CPUC to create process improvements to, and potential timelines for, Electric Rule 21 to address certain types of delays.

This is a much broader issue that Pioneer may want to participate in since this issue could affect our territory in the near future if it is not addressed.

AB 704, Jim Patterson (R) – Energy: building standards: photovoltaic requirements
Impact to Pioneer: Yes
This bill, until January 1, 2027, would require residential construction intended to repair, restore, or replace a residential building damaged or destroyed as a result of a disaster in an area in which a state of emergency has been proclaimed by the Governor to comply only with requirements regarding photovoltaic systems pursuant to the regulations, if any, that were in effect at the time the damaged or destroyed residential building was originally constructed.

This bill’s provisions would only apply if one or more of the specified conditions are met with respect to the building owner’s income, insurance coverage, or the location or square footage of the construction.

Priority: High
Recommended Action/Position: Support. Pioneer’s service territory has unfortunately seen more than its fair share of wildfires. This bill could relieve local homeowners whose homes were either damaged or destroyed by wildfires from having to install solar on their homes. This bill would require the home to be repaired or replaced based upon the solar installation requirements at the time the home was built as opposed to when the home is being repaired or replaced.

AB 998, Connolly (D) – Biomass energy facilities: State Energy Resources Conservation and Development Commission: report
Impact to Pioneer: Yes
This bill would require the CEC, on or before December 31, 2024, to issue a report on utility-scale biomass facilities still in operation as of January 1, 2024, to develop a plan to modernize and save biomass facilities. This bill would require the report to include a strategy to upgrade biomass combustion facilities, where appropriate, that considers impacts on disadvantaged, rural forested, and agricultural communities, impacts on the ability to maintain existing capacity for managing forest or other excess biomass, the cost of upgrading facilities and financing opportunities, and job creation or job loss that may result from the strategy.

Priority: High
Recommended Action/Position: Support. For CCAs, like Pioneer, that are interested in procuring biomass, this bill could be helpful in finding a path forward 18 | Page Pioneer State Legislative Policy and Platform 2023 for the expansion of the biomass industry that includes modernizing facilities to newer technologies, such as gasification or carbon capture and sequestration.

AB 1373, Garcia (D) – Energy
Impact to Pioneer: Yes
This bill would make significant policy changes to electricity market structure and regulations proposed by the Newsom Administration’s 2023 budget energy trailer bill, including the creation of a central procurement entity at the Department of Water Resources.

This bill would require capacity payments for load-serving entities and local publicly owned electric utilities that are deficient in their reliability obligations and DWR’s Strategic Reliability Reserve was used to meet their reliability needs. This bill would also bestow upon the California Public Utilities Commission enforcement and subsequent penalty authority of load serving entities’ integrated resource plans.

Priority: High
Recommended Action/Position: Oppose unless amended. There is no evidence to suggest that the existing load serving entities are incapable of procuring the necessary resources to meet the state’s energy needs and therefore the need for a central procurement entity is questionable. Additionally, this bill would give the CPUC jurisdiction over CCA procurement autonomy by making CCAs subject to the same requirements that apply to electrical corporations. Lastly, this bill would require a load serving entity to make a capacity payment if it is short on their year-ahead resource adequacy requirements. This provision fails to recognize the shortage of resource adequacy supply, that many load serving entities will not be able to comply despite their best efforts, and imposing a penalty will result in customers paying twice for the same deficiency.

SB 83, Wiener (D) – Public utilities: electrical distribution grid:
interconnection
Impact to Pioneer: Yes
This bill would require an electrical corporation to interconnect a development project within eight weeks of receiving a notification from a development project applicant that the development project is interconnection ready. This bill would also require the electrical corporation to compensate a development project applicant for failing to meet the 9-week time period.

Priority: High
Recommended Action/Position: Support. Pioneer and other CCAs sent out a survey to its jurisdictions inquiring about interconnection delays. While the most significant delays were outside of Pioneer’s territory, they were within PG&E’s service territory. This is a much broader issue that Pioneer may want to participate in since this issue could affect our territory in the near future if it is not addressed. 19 | Page Pioneer State Legislative Policy and Platform 2023 SB 410, Becker (D) – Powering Up Californians Act
Impact to Pioneer: Yes
This bill would create the Powering Up Californians Act. This bill would declare that in order to meet the state’s decarbonization goals, the state’s electrical distribution systems must be substantially upgraded, new customers must be promptly interconnected, and existing customers must have their service level promptly upgraded.

This bill would require the CEC to establish a working group, before March 1, 2024, to provide advice regarding the development of reasonable average and maximum target interconnection time periods, propose processes that would improve the ability of utilities to be informed well in advance of needed increases in distribution system capacity, and explore options to reduce interconnection time periods.

SB 488, Alvarado-Gil (D) – California Renewables Portfolio Standard Program: bioenergy projects: community choice aggregators Impact to Pioneer: Yes
The Legislature in 2016 (SB 859), required IOUs and POUs to procure their proportionate share of 125 MW of biomass energy. Since that time, these contracts have been extended. SB 1109 (Caballero, Statutes of 2022) required the extension of these contracts, except in the circumstances where a contract was entered into, and the biomass facility declared bankruptcy or where the contract does not deliver energy to the grid. This means that approximately 30MW of the original 125 would never be procured. This bill would allow community choice aggregators to participate in the BioRAM program in instances where the exception in SB 1109 occurred.

Priority: High
Recommended Action/Position: Support. This bill would allow CCAs access to the BioRAM program which helps offset the high cost of biomass and could help to realize the full benefits of 125 megawatts of bioenergy originally intended by the Legislature. Additional benefits include assisting California in treating 1 million acres of forests a year and converting waste into a valuable product (i.e., baseload, renewable energy). Biomass avoids the need for open pile burning, averts significant emissions when compared to wildfires or open pile burning, and is part of a broader strategy to reduce wildfires.
20 | Page Pioneer State Legislative Policy and Platform 2023 SB 529, Gonzalez (D) – Electric vehicle sharing services: affordable housing facilities
Impact to Pioneer: Yes
This bill would require the CEC to create a competitive grant program for electric vehicle car sharing services operated at affordable housing facilities for the exclusive use of residents.

Priority: High
Recommended Action/Position: Support. Pioneer will be looking to support legislation that provides incentives for future program opportunities, especially as it relates to electric vehicles.

SB 537, Becker (D) – Open meetings: multijurisdictional, cross-county agencies: teleconferences
Impact to Pioneer: Yes
This bill would expand the circumstances of “just cause” under the Brown Act to apply to the situation in which an immunocompromised child, parent, grandparent, or other specified relative requires the member to participate remotely.

This bill would authorize the legislative body of a multijurisdictional, cross-county agency to use alternate teleconferencing provisions if the eligible body adopts an authorizing resolution. This bill would require at least a quorum of members of the legislative body to participate from locations within the boundaries of the local agency’s jurisdiction and prohibit a member from participating remotely unless the remote location is the member’s office or another location in a publicly accessible building and is more than 40 miles from the in-person meeting. The provisions of this bill would be repealed as of January 1, 2028.

Spot Bills
There are currently numerous Spot Bills, not included in this document, in both the Assembly and the Senate being monitored by Pioneer staff. Spot bills make technical, non-substantive changes in the law and function as a placeholder for a later proposal, and they must be amended prior to being heard in a committee. As these bills are amended, the Board will be apprised of potential impact to Pioneer and CCAs as appropriate.
21 | Page Pioneer State Legislative Policy and Platform 2023 Legislative Representatives
Senate
Brian Dahle – District 1
Capitol Office: 1021 O Street, Room 7230, Sacramento, CA 95814 (916) 651-4001
District Office: 1320 Yuba Street, Suite 102, Redding, CA 96001; (530) 224-7001 11230 Gold Express Drive, Suite 304, Gold River, CA 95670; (916) 464-4201 100 North Market Street, Bieber, CA 96009; (530) 294-5000

Marie Alvarado-Gil – District 4
Capitol Office: 1021 O Street, Room 7240, Sacramento, CA 95814 (916) 651-4004
District Office: 1020 15th Street, Suite 21, Modesto, CA 95354; (209) 576-6001 460 Sutter Hill Rd., Suite C, Sutter Creek, CA 95685. (209) 267-5033 Roger Niello – District 6
Capitol Office: 1021 O Street, Room 7110, Sacramento, CA 95814 (916) 651-4006
District Office: 2200A Douglas Blvd., Suite 100, Roseville, CA 95661; (916) 772- 0571
Assembly
Megan Dahle – District 1
Capitol Office: 1021 O Street, Suite 5710, Sacramento, CA 95814 (916) 319-2001
District Office: 113 Presley Way, Suite 2, Grass Valley, CA 95945; (530) 265-0601 280 Hemsted Drive, Suite 110, Redding CA 96002; (530) 223-6300 Joe Patterson – District 5
Capitol Office: 1021 O Street, Suite 4530, Sacramento, CA 95814 (916) 319-2005
District Office: 8799-A Auburn Folsom Road, Granite Bay, CA 95746; (916) 774- 4430
22 | Page Pioneer State Legislative Policy and Platform 2023 Appendix A: 2023 Legislative Session Calendar
January Deadlines:

Jan. 1 Statutes take effect
Jan. 4 Legislature reconvenes
Jan. 10 Budget must be submitted by Governor
Jan. 20 Last day to submit bill requests to the Office of Legislative Counsel

February Deadlines:

Feb. 17 Last day for bills to be introduced
March Deadlines:

March 30 Spring Recess begins upon adjournment
April Deadlines:

Apr. 10 Legislature reconvenes from Spring Recess
Apr. 28 Last day for policy committees to hear and report to fiscal committees’ fiscal bills introduced in their house
May Deadlines:

May 5 Last day for policy committees to meet and report to the floor non-fiscal bills introduced in their house
May 12 Last day for policy committees to meet prior to June 5 May 19 Last day for fiscal committees to meet and report to the floor bills introduced in their house
Last day for fiscal committees to meet prior to June 5
May 30-June 2 Floor session only. No committee may meet for any purpose except for Rules Committee, bills referred pursuant to A.R. 77.2, and Conference Committees
May 31 Committee meetings may resume
June Deadlines:

June 2 Last day for each house to pass bills introduced in that house June 5 Committee meetings may resume
23 | Page Pioneer State Legislative Policy and Platform 2023 June 15 Budget Bill must be passed by midnight
July Deadlines:

July 14 Last day for policy committees to meet and report bills Summer Recess begins on adjournment, provided Budget Bill has been passed
August Deadlines:

Aug. 14 Legislature reconvenes from Summer Recess
September Deadlines:

Sept. 1 Last day for fiscal committees to meet and report bills Sept. 5-14 Floor session only—no committee may meet for any purpose, except Rules Committee, bills referred pursuant to Assembly Rule 77.2, and Conference Committees
Sept. 8 Last day to amend bills on floor
Sept. 14 Last day for each house to pass bills. Interim Recess begins upon adjournment
Important Dates Occurring During Interim Recess:
2023
Oct. 14 Last day for Governor to sign or veto bills passed by the Legislature on or before Sept. 14 and in the Governor's possession on or after Sept. 14
2024
Jan. 1 Statutes take effect
Jan. 3 Legislature reconvenes
24 | Page Pioneer State Legislative Policy and Platform 2023 Appendix B: Table of Acronyms
AB Assembly Bill ES Enewv Storage Plans)
AL Advice Letter ESA Enen,v Storage Agreements PAC Public Agency Coalition ALJ Administrative Law Judge ESP Electric Service Provider PAM Portfolio Allocation Methodology ARB Air Resources Board EV Electric Vehicle PCE Peninsula Clean Energy Authoritv AReM Alliance for Retail Energy Markets FCR F1exi ble Capacity Requirements PCIA Power Charge Indifference Adjustment BayREN Bay Area Regional Energy Network GHG Greenhouse Gas PD Proposed Decision CAlSO California Independent Svstem Operator GRC General Rate Case PG&E Pacific Gas & Electric CalCCA California Community Choice Association GTSR Green Tariff Shared Renewables PHC Prehearing Conference CALSEIA California Solar Energy Industries !CA Integration Capacity Analvsis PPA Power Purchase Agreement Association IDER Integrated Distributed Enerov Resources PRP Priori tv Review Proi ect CALSLA California City County Street Light !DSM Integrated Demand-Side Management PRRR Progress On Residential Rate Reform Association IEP Independent Energy Producers PUC Public Utiliti es Code CAM Cost Allocation Mechanism !MD Indeoendent Marketing Division PURPA Public Utiliti es Regulatorv Policy Act CARE California Alternate Rates for Energy IOU Investor Owned Utility RA Resource Adequacy CBE Communities for a Better Environment !RP Integrated Resource Planning RAM Renewables Auction Mechanism CCA Community Choice A1urregator LCE Lancaster Choice Energy REC Renewable Enen,y Credit CCSF City and County of San Francisco LCFS Low Carbon Fuel Standard RES-BCT Renewable Energy Self-Generation Bill CEC California Energy Commission LCR Local (RA) Capacity Requirements Credit Transfer CEE Coalition for Energy Efficiency LNBA Locational Net Benefits AnalYsis RFO Request for Offers CLECA California Large Energy Consumers LSE Load-Serving Entity RICA Renewable Integration Cost Adder Association LTPP Long- Term Procurement Rulemaking RPS Renewables Portfolio Standard CPUC California Public Utilities Commission MCE Marin Clean Energy SB Senate Bill DA Direct Access MEO Marketing, Education And Outreach SCE Southern California Edison DACC Direct Access Customer Coalition MW Megawatt SCP Sonoma Clean Power Authority DER Distributed Enewv Resources
DR Demand Response
NAESCO National Association of Energy Service
Companies
SDG&E San Diego Gas & Electric
DRP Distributed Resource Plans NDA Non-Disclosure Agreement SGIP Self-Generation Incentive Program DWR Department of Water Resources NEM Net Energy Metering SUE Super User Electric ECR Enhanced Communitv Renewable NBC Non-Bvoassable Charge SVCE Silicon Valley Clean Enen,y ED Energy Division NRDC Natural Resources Defense Council TE Transportation Electrification EE Energy Efficiency OIR Order Instituting Rulemaking TM Tree Mortality ELCC Effective Load Carrving Caoacity osc Order to Show Cause TOU Time-of-Use EPIC Electric Program Investment Charge ORA Office of Ratepayer Advocates TURN The Utility Reform Network ERRA Energy Resource Recovery Account PA Program Administrator (for EE Business

Page 1 of 2 ends

Staff Report – Item 1e
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1e: Adopt a Resolution Approving and Authorizing the Executive Director to Execute Renewal Agreement with Maher Accountancy for Accounting Services Date: 5/25/2023

RECOMMENDATION
Adopt a resolution approving and authorizing the Executive Director to execute a renewal agreement with Maher Accountancy for accounting services from July 1, 2023, through June 30, 2024 for an amount not to exceed $195,800.

BACKGROUND
Accurate financial reporting and strong internal controls are of high importance to both the Governing Board and Staff. On March 18, 2021, the Board authorized the Executive Director to execute an agreement with Maher Accountancy for Pioneer’s accounting and financial reporting needs from April 2021 to June 2022. On May 19, 2022, the Board authorized Pioneer’s agreement with Maher Accountancy to be renewed from June 2022 to June 2023.

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

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

Standard Services include:

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

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

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

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

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

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

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

8. Assist in treasury function.

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

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

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 1e Agenda Date: 5/25/2023

Page 2 of 2 ends

Maher Accountancy shall also:
• assist with coordination of an independent auditor for the annual audit and prepare annual financial statements, including notes and the Management Discussion & Analysis. • coordinate with the County of Placer for inclusion of mPOWER financials in the annual audit process. • maintain online contract and budget tracking tools to improve staff’s ability to track spending and manage service contracts more efficiently.

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

STRATEGIC PLAN
Strategic Priority 5: Financial Stability & Strategic Growth

FISCAL IMPACT
The fiscal impact of this recommendation is $195,800 over a 12-month period beginning July 1, 2023.

ATTACHMENTS

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

Ayes:

Noes:

Absent:

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

In the matter of: A Resolution Approving and
Authorizing the Executive Director to
Execute an Agreement with Maher
Accountancy for Accounting Services
Resolution 2023-___
May 25, 2023
2 • Maher Accountancy has extensive experience working with Pioneer’s service providers; Calpine Energy Solutions and ZGlobal which provide critical data services for revenues and cost of energy.
• Maher Accountancy transitioned Pioneer from County accounting services and have provided Pioneer with exceptional services.

BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:

1. The above recitals are true and correct.

2. The Governing Board hereby approves and authorizes the Executive Director to Execute an Agreement with Maher Accountancy for Accounting services, in substantially the form attached, for accounting services from July 1, 2023 through June 30, 2024, for an amount not-to-exceed $195,800 with any minor clerical or clarifying changes proposed by the Executive Director and approved by General Counsel.

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

Attachment: Professional Services Agreement with Maher Accountancy. - 1 -
Administering Agency: Pioneer Community Energy
Contract No. _____________ Contract Description: Accounting Services

CONSULTANT SERVICES AGREEMENT
THIS AGREEMENT is made at Rocklin, California, as of May 25, 2023, by and between Pioneer Community Energy, ("Pioneer"), and Maher Accountancy ("Consultant"), who agree as follows:

1. Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide the services described in Exhibit A. Consultant shall provide said services at the time, place, and in the manner specified in Exhibit A. 2. Payment. Pioneer shall pay Consultant for services rendered pursuant to this Agreement at the time and in the amount set forth in Exhibit B. The payment specified in Exhibit B shall be the only payment made to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all billings for said services to Pioneer in the manner specified therein, or, if no manner be specified, then according to the usual and customary procedures which Consultant uses for billing clients similar to Pioneer. The amount of the contract shall not exceed One Hundred Ninety-Five Thousand Eight Hundred Dollars ($195,800.00).

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

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

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

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

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

8. Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for the satisfactory performance of Consultant's obligations pursuant to this Agreement. Neither party shall be considered in default of this Agreement to the extent performance is prevented or delayed by any cause, present or future, which is beyond the reasonable control of the party.
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9. Hold Harmless and Indemnification Agreement. At all times during the performance of this agreement, Consultant agrees to protect, defend, and indemnify Pioneer in accordance with the provisions contained in Exhibit D.

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

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

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

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

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

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

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

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

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

16. Contract Term. The term of this Agreement shall commence on July 1, 2023, and shall terminate on June 30, 2024, unless terminated earlier as set forth herein.

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

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

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

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

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

22. Entirety of Agreement. This Agreement contains the entire agreement of Pioneer and Consultant with respect to the subject matter hereof, and no other agreement, statement, or promise made by - 4 -
any party, or to any employee, officer or agent of any party, which is not contained in this Agreement, shall be binding or valid.

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

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

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

PIONEER COMMUNITY ENERGY: CONSULTANT:

Pioneer Community Energy Maher Accountancy
Attn: Eric Acedo Attn: Michael Maher
2510 Warren Drive Suite B 1101 Fifth Ave, Suite 200
Rocklin, CA 95677 San Rafael, CA 94901
[email protected] [email protected]
Phone: 916-758-8943 Phone: (415) 526-3020
Any notice so delivered personally shall be deemed to be received on the date of delivery, and any notice mailed shall be deemed to be received five (5) days after the date on which it was mailed. - 5 -
Executed as of the day first above stated:

PIONEER COMMUNITY ENERGY
By: _____________________________
Name: Don Eckert
Title: Executive Director
Approved as to Form – General Counsel:

By: _____________________________
Name: Inder Khalsa
Title: General Counsel

MAHER ACCOUNTANCY
By: _____________________________
Name: Michael Maher
Title: Vice President
Exhibits
A. Scope of Services
B. Payment for Services Rendered
C. Facilities, Equipment and Other Obligations of Pioneer D. Hold Harmless Agreement and Insurance Requirements

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EXHIBIT A

SCOPE OF SERVICES
A. Monthly Financial Operational Assistance:

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

2. Maintain the general ledger with proper support and documentation, including:
a. Posting accrued revenue, cash receipts, accounts payable, cash disbursements, payroll, accrued expenses, aggregate customer billings, etc. b. Prepare or maintain the following monthly analysis regarding general ledger account balances:
i. Reconciliation to statements from Pioneer's financial institution for cash activity and balances;
ii. Reconciliation of customer data manager reports of customer activity and accounts receivable aging to general ledger;
iii. Computation of estimated user fees earned but not billed as of the end of the reporting period;
iv. Schedule of depreciation of capital assets;
v. Aged schedule of accounts payable;
vi. Schedules of details regarding all remaining balance sheet accounts.

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

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

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

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

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

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

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

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

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

B. Financial Statement Audit Support

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

2. Prepare audit workpapers

3. Coordinate with Pioneer and auditor
C. Provide access to unified web portal for professional services contract management and review

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

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

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

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

5. Pioneer will review Maher’s input of the contract data into the portal

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EXHIBIT B

PAYMENT FOR SERVICES RENDERED
Maximum Limit & Fee Schedule
The total amount for services rendered as described in Exhibit “A” shall not exceed $195,800. Maher Fee Summary Task Fixed Monthly Fee Annual Maximum Notes
Monthly Financial
Operations Support $14,200 $170,400
Annual Financial Statement
Audit Report N/A $15,800 Payable upon audit completion
Contract/Budget Portal $800 $9,600
Not-to-Exceed Total N/A $195,800
Reimbursable Expenses
Administrative, overhead, secretarial time or overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. Pioneer user fees and Payment issuance costs charged by cloud-based accounts payable services will be borne by Pioneer.

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

Submit all invoices to: Pioneer Community Energy
Attn: Eric Acedo
[email protected]
2510 Warren Drive, Suite B
Rocklin, CA 95677

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EXHIBIT C

FACILITIES, EQUIPMENT, AND OTHER

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

NOT APPLICABLE

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EXHIBIT D

HOLD HARMLESS AGREEMENT

AND INSURANCE REQUIREMENTS

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

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

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

2. INSURANCE:

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

3. WORKER'S COMPENSATION AND EMPLOYERS LIABILITY INSURANCE:

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

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

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

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

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

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

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employees, agents or volunteers, which might arise by reason of payment under such policy in connection with performance under this agreement by the CONSULTANT.

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

4. GENERAL LIABILITY INSURANCE:

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

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

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

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

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

E. Special Claims Made Policy Form Provisions:

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

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

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

5. ENDORSEMENTS:

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

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

6. AUTOMOBILE LIABILITY INSURANCE:

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

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

7. PROFESSIONAL LIABILITY INSURANCE:

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

8. PRIVACY AND CYBERSECURITY LIABILITY INSURANCE:

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

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9. ADDITIONAL REQUIREMENTS:

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

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

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

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

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

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Staff Report – Itemm2
To: The Governing Board
From: Mark Riffey, Key Accounts Manager
Item 2: Receive a report and provide direction as it relates to the next steps in pursuit of submitting an Elect to Administer application to the California Public Utilities Commission to secure funds from the public purpose program.

Date: 5/25/2023

RECOMMENDATION
Receive a report and provide direction, as it relates to the next steps in pursuit of submitting an Elect to Administer (“ETA”) application to the California Public Utilities Commission (“CPUC”) to secure funds from the CPUC’s public purpose program (“PPP”).

BACKGROUND
In late 2022, Pioneer began researching the possibility of requesting funds from the CPUC’s PPP to support future customer program offerings. Pioneer reached out to several CCAs that had already gone through the “elect to administer” process and received feedback on how each CCA managed this process. Frontier Energy has supported several other CCAs through the PPP funding request process. Since January 2023, Frontier has collaborated with Pioneer in the preparation of the cost analysis.

At the January 2023 Board of Director’s meeting, the Board authorized the Executive Director to execute an agreement between Pioneer Community Energy (“Pioneer”) and Frontier Energy (“Frontier”) for program services. Frontier’s initial task was to perform a cost analysis and create a report related to the availability of adequate funding to proceed with additional work.

ANALYSIS & DISCUSSION
Below is a summary of Pioneer Community Energy’s assumptions for categorizing Pacific Gas and Electric (PG&E)’s approved 2023 and proposed 2024 programs as Statewide, Regional, or Other as required for determining the maximum funding limits for an Elect to Administer (ETA) funding advice letter. The ETA funding determination findings are summarized in the table below. For completeness the funding calculation was performed using the approved 2023 budget and the proposed budget that will be decided upon by the California Public Utility Commission (CPUC) this year.

Table 1: Pioneer Community Energy’s Funding Calculation Results for Program Years 2023 and 2024 2023 PG&E
Approved Budget
2024 PG&E
Proposed Budget
Maximum annual program budget $329,440 $321,286
Maximum three-year budget $988,322 $963,857
The PG&E program review and recommendations were developed in accordance with CPUC’s Decision Enabling Community Choice Aggregators to Administer Energy Efficiency Programs D.14-01-033 (See Attachment 1). For a detailed background of the calculation, see sections 3.2.4.1, 3.2.4.2, and 3.2.4.3 of the Decision.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 2 Agenda Date: 5/25/2023

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Background on Funding Calculation
D.14-01-033 establishes that funding for Statewide and Regional programs shall be excluded in any ETA funding determination as follows:
“Statewide Programs” – Programs, as defined and designated by the Commission, that are offered throughout the four IOU service territories on a generally consistent basis. Evaluation, Measurement and Verification budgets are included in statewide programs, as these budgets are overseen by Commission staff across all four IOUs on a consistent basis. “Regional Programs” - Programs offered to all eligible customers throughout an individual IOU’s service territory in which a CCA is offering service, but not necessarily offered in other IOU service territories.

This includes state and institutional government partnerships. This does not include any programs that are offered only in a geographic subset of an IOU territory.1 CPUC further states in D.14-01-033 that the Commission will review IOU programs and sort them into three categories: “Regional Programs”, “Statewide Programs,” or “Other” based on these definitions.

The ETA approach is set in the Public Utilities Code Section 381.1(e) and (f) and it expressly limits energy efficiency (EE) offerings to customers served by the Community Choice Aggregator (CCA). CCAs that pursue the ETA option do not need to file applications – they file their EE program plans as Tier 3 Advice Letters. Review and resolutions on ETA program plans tend to take less time, typically between three to seven months, than applications which can take as long as one to two years. While Advice Letters are less onerous than applications, they will need to demonstrate the CCA has forecasted a cost-effective program.

D.14-01-033 set the below formula for the maximum funding that a CCA who pursue the ETA route can request when establishing a budget:

CCA maximum funding = Total electricity energy efficiency non-bypassable charge collections from the CCA’s customers – (total electricity EE non-bypassable charge collections from the CCA’s customers * % of the applicable IOU portfolio budget that was dedicated to statewide and regional programs in the most recently authorized program cycle).

Due to limitations on which customers can be served under their programs, dwindling IOU budgets for local programs, and a prescriptive funding formula, ETA CCAs have access to significantly less EE funding. Funds available for an ETA pathway are a result of the ETA formula and are impacted by the increasing percentage of the applicable IOU’s portfolio budget that is dedicated to statewide and regional programs. The greater the share that is dedicated to statewide and regional, the smaller the share of the budget that is available for the ETA pathway.

Cost Effectiveness Requirement
D.14-01-0332 states that the energy efficiency portfolios of CCAs will be subject to a lower cost-effectiveness threshold Total Resource Cost (TRC) ratio of 1.0 rather than the IOUs’ current 1.25 threshold TRC ratio for the first three years that a CCA is a program administrator. Thereafter, CCA program administrators will be subject to the same cost-effectiveness standards as IOU program administrators.

The foundation of cost-effectiveness analysis for all demand-side resources is based in the Standard Practice Manual which contains four tests to assess the costs and benefits of demand-side resource programs from different stakeholder perspectives, including participants and non-participants. The specific tests and the applications of those tests vary among the resources. For ratepayer-funded energy efficiency programs, CPUC applies a threshold TRC ratio as described above. According to the Standard Practice Manual, the TRC cost-effectiveness test measures the net costs of the program as a resource option based on the total costs of the program, including both the participants and the utility's costs. 1 D.14-01-033, page 25. 2 D. 14-01-033, Section 3.2.2.1., p 14.

Agenda Item: 2 Agenda Date: 5/25/2023

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In cost-effectiveness analysis for energy efficiency programs, the primary benefits of demand-side resources are the avoided costs related to generation and distribution of energy. The avoided costs of electricity are modeled based on the following components: generation energy, generation capacity, ancillary services, transmission and distribution capacity, greenhouse gases, and high global warming potential gases. The Avoided Cost Calculator is updated annually to improve the accuracy of how benefits of demand-side resources are calculated.3
PG&E Programs Proposed for ETA Funding Determination
As such, and consistent with the determination of “Other” programs in PG&E’s 2023 and 2024 energy efficiency programs Frontier Energy has categorized local government programs as “Other”.

The following tables summarize the review of applicable 2023 and 2024 PG&E Programs, based upon PG&E 2023 filed Biannual Budget Advice Letter and PG&E 2024 – 2031 Strategic Business Plan’s 2024 programs listed on CEDARS as of May 1, 2023.

Table 2: PG&E 2023 Programs Proposed for Pioneer Community Energy’s ETA Funding Determination Statewide
/
Regional Program ID Program Name
Primary
Sector $ Budget
Other PGE_Pub_001 Central Coast Local Government Partnership Public 365,138.77 Other PGE_Pub_002 Marin Local Government Partnership Public 345,730.95 Other PGE_Pub_003 Redwood Local Government Partnership Public 372,403.39 Other PGE_Pub_004 Central California Local Government Partnership Public 830,450.50 Other PGE_Pub_005 San Mateo Local Government Partnership Public 640,339.48 Other PGE_Pub_006 San Francisco Local Government Partnership Public 990,552.20 Other PGE_Pub_007 Sierra Local Government Partnership Public 813,208.67 Other PGE_Pub_008 Sonoma Local Government Partnership Public 412,009.34 4,769,833.30
The maximum annual funding as detailed in Table 3: Maximum ETA Funding Available Using 2023 PG&E’s Approved Programs Budget was determined as follows:
• Total Pioneer Community Energy non-bypassable charge funds to be collected in 2024 = $17,794,800.32. • 98.15%4 of PG&E’s 20235 approved total EE funds were dedicated to statewide and regional programs. • Annual not-to-exceed value = Total non-bypassable funds collected by CCA customers less Statewide and Regional programs (($17,794,800.32*[1-% excluded IOU budget (98.15%)]) = $329,440.32 • Pioneer Community Energy annual ETA funding not-to-exceed value = $329,440.32 • Pioneer Community Energy three-year ETA funding not to exceed value = $988,321.95 3 https://www.cpuc.ca.gov/consumer-support/consumer-programs-and-services/electrical-energy-and-energy-efficiency/cost-effectiveness 4 As reported in the California Energy Data and Reporting System (“CEDARS”), https://cedars.sound-data.com/filings/dashboard/PGE/2023. 5 See D.14-01-033 at page 26: “In order to calculate the funding exclusion, the Commission will review the relevant IOU’s most recently approved portfolio budget.” Therefore, Pioneer Community Energy references PG&E 2023 approved budget.

Agenda Item: 2 Agenda Date: 5/25/2023

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Table 3: Maximum ETA Funding Available Using 2023 PG&E’s Approved Programs Budget Description
Percent /
Amount
Percent of total EE funds to be collected by PG&E
dedicated to Statewide and Regional programs

98.15%
Percent of total EE funds to be collected by PG&E
dedicated to other programs

1.85%
Forecasted Public Good Charges Collected by Pioneer
Community Energy
$17,794,800
Maximum annual funding $329,440
Maximum three year funding $988,322
Table 4: PG&E 2024 Programs Proposed for Pioneer Community Energy’s ETA Funding Determination Statewide
/
Regional Program ID Program Name
Primary
Sector $ Budget
Other PGE_Pub_001 Central Coast Local Government Partnership Public 401,591.62 Other PGE_Pub_002 Marin Local Government Partnership Public 174,090.01 Other PGE_Pub_003 Redwood Local Government Partnership Public 479,179.46 Other PGE_Pub_004 Central California Local Government
Partnership
Public 816,228.78
Other PGE_Pub_005 San Mateo Local Government Partnership Public 580,597.84 Other PGE_Pub_006 San Francisco Local Government Partnership Public 1,117,666.40 Other PGE_Pub_007 Sierra Local Government Partnership Public 744,069.88 Other PGE_Pub_008 Sonoma Local Government Partnership Public 418,217.58 4,731,641.57
The maximum annual funding as detailed in Table 5: Maximum ETA Funding Available Using 2024 PG&E’s Proposed Programs Budget was determined as follows:
a. Total Pioneer Community Energy non-bypassable charge funds to be collected in 2024 = $17,794,800.32.
b. 98.19%6 of PG&E’s 2024 proposed total funds were dedicated to statewide and regional programs. c. Annual not-to-exceed value = Total non-bypassable funds collected by CCA customers less Statewide and Regional programs (($17,794,800.32*[1-% excluded IOU budget (98.19%)]) = $321,285.78
d. Pioneer Community Energy annual ETA funding not-to-exceed value = $321,285.78 e. Pioneer Community Energy three-year ETA funding not to exceed value = $963,857.34 6 As reported in the California Energy Data and Reporting System (“CEDARS”), https://cedars.sound-data.com/filings/dashboard/PGE/2024.

Agenda Item: 2 Agenda Date: 5/25/2023

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Table 5: Maximum ETA Funding Available Using 2024 PG&E’s Proposed Programs Budget Description
Percent /
Amount
Percent of total EE funds to be collected by PG&E
dedicated to Statewide and Regional programs

98.19%
Percent of total EE funds to be collected by PG&E
dedicated to other programs

1.81%
Forecasted Public Good Charges Collected by Pioneer
Community Energy
$17,794,800
Maximum annual funding $321,286
Maximum three-year funding $963,857
Recommendation
Based on the results of the funding determination, PG&E’s programs were reviewed for comparable budget size with filter to those that achieved the required 1.0 TRC or greater. The table below details the eight programs with the smallest budget that score a TRC of 1.0 or greater. Six of the programs are part of statewide programs, and the program only accounts for PG&E’s portion of the budget, so those program budgets are in fact larger.

The remaining two programs are specific to the industrial market segment. With this as reference it seems unlikely that a program design exploration would result in a cost-effective program with the maximum budget available to Pioneer Community Energy via the ETA funding determination.

Statewide
/ Regional Program ID Program Name TRC Budget
Statewide PGE_SW_NC_NonRes_Ag_electric SW New Construction NonRes Ag - All Electric

1.28 108,365.50
Statewide PGE_SW_NC_NonRes_Pub_electric SW New Construction NonRes Public - All Electric

1.04 235,409.24
Statewide PGE_SW_NC_NonRes_Ind_electric SW New Construction NonRes Ind - All Electric

1.42 267,855.36
Statewide PGE_SW_NC_NonRes_Pub_mixed SW New Construction NonRes Public - Mixed Fuel

1.31 308,605.83
Regional PGE21022 Industrial Deemed Incentives 3.07 401,608.90 Statewide PGE_SW_NC_NonRes_Com_electric SW New Construction NonRes Com - All Electric

1.15 482,567.77
Regional PGE210212 Compressed Air and Vacuum
Optimization Program

1.4 706,504.66
Statewide PGE_SW_CSA_Appl State Appliance Standards
Advocacy

14.58 833,303.00

FISCAL IMPACT
There is no fiscal impact with this report.

ATTACHMENTS

1. CPUC Decision 14-01-033
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86532124
ALJ/TOD/sbf Date of Issuance 1/23/2014
Decision 14-01-033 January 16, 2014

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Order Instituting Rulemaking to Examine
the Commission's Post-2008 Energy
Efficiency Policies, Programs, Evaluation,
Measurement, and Verification, and
Related Issues.

Rulemaking 09-11-014
(Filed November 20, 2009)

DECISION ENABLING COMMUNITY CHOICE AGGREGATORS TO

ADMINISTER ENERGY EFFICIENCY PROGRAMS
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TABLE OF CONTENTS
Title Page
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DECISION ENABLING COMMUNITY CHOICE AGGREGATORS TO
ADMINISTER ENERGY EFFICIENCY PROGRAMS................................................ 1

1. Summary ........................................................................................................... 2

2. Background....................................................................................................... 3

3. Discussion ......................................................................................................... 4

3.1. The “Access” Issue .................................................................................. 4

3.2. The Statutory Framework ...................................................................... 5

3.2.1. CCA Applications to Administer Energy Efficiency and Conservation Programs Under Section 381.1(a)-(d) ............. 6

3.2.2. The Policy Manual .................................................................... 12

3.2.2.1. Cost-Effectiveness............................................................ 14

3.2.2.2. Evaluation, Measurement, and Verification
(EM&V)............................................................................. 16

3.2.2.3. Energy Efficiency Funding Sources .............................. 16

3.2.3. Application Details ................................................................... 19

3.2.4. Election Option Under Section 381.1(e) and (f) .................... 20

3.2.4.1. Funding Determination.................................................. 22

3.2.4.2. Total Energy Efficiency Collections from CCA
Customers......................................................................... 22

3.2.4.3. Funding Exclusions ......................................................... 24

3.2.4.4. Review of CCA Proposed Energy Efficiency
Plans .................................................................................. 27

3.2.4.4.1. Consistency with the Goals of the programs
established pursuant to Section 381.1 and Section
399.4. ........................................................................ 27

3.2.4.4.2. Advances the public interest in maximizing
cost-effective electricity savings and related
benefits .................................................................... 28

3.2.4.4.3. Accommodates the need for broader statewide
and regional programs.......................................... 29

3.2.4.4.4. Includes audit and reporting requirements
consistent with the audit and reporting
requirements established by the Commission
pursuant to Section 381.1...................................... 29 R.09-11-014 ALJ/TOD/sbf
TABLE OF CONTENTS (CONT’D)
Title Page
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3.2.4.4.5. Includes EM&V protocols established by the
CCA.......................................................................... 29

3.2.4.4.6. Includes performance metrics regarding the
CCA's achievement of the objectives listed in
paragraphs (1) to (5), inclusive, and in any
previous plan.......................................................... 30

3.3. The “Safeguards” Issue......................................................................... 30

4. Categorization and Need for Hearing ........................................................ 31

5. Comments on Proposed Decision ............................................................... 31

5.1. Comments re both: (1) applications under Section 381.1 (a)-(d) and (2) advice letters under Section 381.1(e)-(f)................................ 31

5.1.1. Compliance with the Policy Manual...................................... 31

5.1.2. The “on-ramp” for first-time CCA administrators .............. 32

5.1.2.1. Party Comments .............................................................. 32

5.1.2.2. Response to Party Comments........................................ 33

5.1.2.3. The TRC for Year 4 and Thereafter............................... 34

5.1.4. Counting CCA savings against IOU targets................ 36

5.1.5. Use of funds collected from electricity customers to pay for gas programs ...................................................... 37

6. Assignment of Proceeding............................................................................ 41 Findings of Fact ............................................................................................................. 41 Conclusions of Law....................................................................................................... 44 ORDER ........................................................................................................................... 50 R.09-11-014 ALJ/TOD/sbf
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DECISION ENABLING COMMUNITY CHOICE AGGREGATORS TO

ADMINISTER ENERGY EFFICIENCY PROGRAMS

1. Summary
This decision determines how community choice aggregators (CCAs) will apply to administer energy efficiency programs. CCAs are henceforth eligible to administer energy efficiency programs under Cal. Pub. Util. Code Section 381.1(a)-(d)1 subject to the same policies and standards as Investor-owned utilities (IOU) program administrators,2 except as noted below.

The Commission’s goal is to make energy efficiency program administration more manageable by harmonizing the energy efficiency rules for CCA program administrators with those of IOU program administrators.

We also put in place rules for CCAs to file advice letters to administer energy efficiency programs just for their own customers, under Section 381.1(e)-(f).

We limit funding under section 381.1 for CCA-administered programs to electricity, and not gas programs.3 We do so because the funding source for CCA-administered programs under Section 381.14 is a non-bypassable charge on

1 All subsequent references to code sections are to the Cal. Pub. Util. Code unless otherwise noted.
2 See generally, the Commission’s Energy Efficiency Policy Manual (EE Policy Manual), http://www.cpuc.ca.gov/NR/rdonlyres/7E3A4773-6D35-4D21-A7A2- 9895C1E04A01/0/EEPolicyManualV5forPDF.pdf.
3 A CCA may, of course, choose to administer programs that offer both gas and electric savings, but should seek Commission-authorized funding under section 381.1 only for the electricity portion of such programs.
4 Both under subsections (a)-(d) and under subsections (e)-(f).

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electricity, not gas, 5 and because CCAs provide only electricity, and not gas, to their customers.

In sum, this decision gives CCAs the chance to become full-fledged energy efficiency program administrators, and an initial start-up period to get up to speed. If a CCA opts not to avail itself of this opportunity, and still wishes to be involved in energy efficiency programs, it has other opportunities to provide energy efficiency services. It may proceed under Section 381.1(e)-(f), or as a program implementer rather than as an administrator.

2. Background
Phase II of this proceeding began on September 22, 2010 with the issuance of an Assigned Commissioner Ruling and Scoping Memo (Scoping Memo). The scope of Phase II includes developing procedures for community choice aggregators (CCAs) to apply to administer cost-effective energy efficiency and conservation programs.6 The specific issues the Scoping Memo assigned to Phase II are:
(1) What should be the rules by which CCA programs gain access to energy efficiency funds, including, but not
limited to, allowing CCA programs to independently
administer such funds? (What the Scoping Memo
termed the “access” issue).
(2) What safeguards are appropriate to ensure that utilities administer energy efficiency funds fairly and not in a
way that adversely affects CCA programs? (What the
Scoping Memo termed the “safeguards” issue).

5 Section 381(a) funds “[c]ost-effective energy efficiency and conservation activities” under Section 381(b) using money from nonbypassable charges collected by electrical (not gas) corporations from “local [electricity] distribution service” customers. 6 See Decision (D.) 03-07-034, Finding of Fact 2 and Ordering Paragraph 1.

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3. Discussion

3.1. The “Access” Issue
The Scoping Memo directed a workshop on the “access” issue. The workshop was held on September 27, 2010. On October 22, 2010, Pacific Gas and Electric Company (PG&E) filed and served a Joint Workshop Report (Joint Report) on behalf of itself, Southern California Edison Company (SCE), City and County of San Francisco (CCSF), Marin Energy Authority (MEA), Natural Resources Defense Council (NRDC), San Joaquin Valley Power Authority, and Women’s Energy Matters (WEM).7
In response to the Joint Report, comments were filed on October 29, 2010, by MEA, NRDC, PG&E, San Diego Gas & Electric Company (SDG&E), Southern California Gas Company, SCE, The Utility Reform Network (TURN), and WEM. Reply comments were filed on November 4, 2010, by CCSF, the Division of Ratepayer Advocates, MEA, NRDC, PG&E, SDG&E, SCE, TURN, and WEM.

There matters stood until June 20, 2012. On that date, a ruling issued by the assigned Administrative Law Judge (ALJ) (June 20, 2012 ALJ Ruling) observed that “To date, the Commission has not taken any action on the issues outlined in the Joint Report or the comments and replies on it.” The June 20,

7 WEM subsequently moved to withdraw its name from the list of parties participating in the Joint Report, and separately moved for acceptance of an alternative report. We deny those motions. We take note, however, of WEM’s concerns regarding the definition of “administration” in the Joint Report as if those concerns had been raised in WEM’s comments (see, e.g., Comments of The Utility Reform Network on Joint Report, at 2 (raising same issue)). In future “joint” reports, PG&E should identify disagreements such as this in any joint document PG&E prepares, just as PG&E noted in the Joint Report other items on which there was not consensus.

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2012 ALJ ruling also noted the Senate’s passage of Senate Bill (SB) 790, and then called for new or “refresh[ed]” comments and reply comments from “[a]ny party interested in commenting on (1) the proposed funding formula and definitions of terms for CCA energy efficiency program administration elected under § 381.1(e) and (f); and/or (2) the appropriate procedures for CCAs to file energy efficiency program proposals for 2015.” SCE, CCSF, MEA, PG&E, and WEM filed opening comments in response to the June 20, 2012 ALJ Ruling. The same entities, plus NRDC and SDG&E, filed reply comments.

3.2. The Statutory Framework
Section 381(b) requires the Commission to “allocate funds collected pursuant to [Section 381(a)] . . . to programs that enhance system reliability and provide in-state benefits as follows: (1) Cost-effective energy efficiency and conservation activities.” Section 381(a), in turn, has the Commission “require each electrical corporation” to collect a nonbypassable charge from the electrical corporation’s distribution customers. The charge the electrical corporation collects is nonbypassable “to ensure that funding for the programs described in subdivision (b) . . . are not commingled with other revenues.”8 Section 381.1 subjects CCAs to particular treatment related to their desire to administer energy efficiency funds. Section 381.1(a)–(d) allows CCAs to access energy efficiency funds from, and provide energy efficiency programs to, both their customers and other utilities’ customers.

SB 790 (Stats. 2011, Ch.599.Leno) added subsections (e) and (f) to Section 381.1. These newer subsections allow a CCA to invoke an alternative

8 Section 381.1(a).

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Commission review process for programs funded by (and offered to) only the CCA’s own customers.

We first discuss the rules governing subsections (a)-(d). We then turn to the rules governing subsections (e) and (f).

3.2.1. CCA Applications to Administer Energy
Efficiency and Conservation Programs Under
Section 381.1(a)-(d)
The Commission will review CCA applications to administer energy efficiency programs under Section 381.1(a)-(d). Section 381.1(a) directs the Commission to establish policies for all types of applicants, “including, but not limited to, a local entity that establishes a community choice aggregation program” to “apply to become administrators for cost-effective energy efficiency and conservation programs.”9 The one distinction Section 381.1 makes for CCAs versus other applicants appears in Section 381.1(d), which states:

The commission shall establish an impartial process for making the determination of whether a third party, including a community choice aggregator, may become administrators for cost-effective energy efficiency and conservation programs pursuant to subdivision (a), and shall not delegate or otherwise transfer the commission's authority to make this determination for a community choice aggregator to an electrical corporation. 10 In sum, Section 381.1 requires the Commission to “establish an impartial process” to review CCA applications to become “administrators.” The Commission may not delegate authority to an electrical corporation to determine whether a CCA applicant may become an administrator.
11 9 Section 381.1(a).
10 Section 381.1(e) (emphasis added).
11 See SB 790 Assembly Appropriations Committee Report (August 17, 2011 hearing).

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To the uninitiated, this direction might seem straightforward enough.

However, matters are more complex than they appear, as reflected in our prior interpretation in D.05-01-055 of the term “administrators” for purposes of Section 381.1. To understand this complexity requires a brief recapitulation of D.05-01-055.

In D.05-01-055, we distinguished the role of a program administrator from that of a program implementer. As we discussed at length in D.05-01-055, “energy efficiency administration encompasses all the functions related to the planning, oversight and management of energy efficiency programs, including decisions on what programs to fund with ratepayer dollars.”12 “[T]he term administration or administrative structure in [D.05-01-055] does not, however, include the various tasks associated with program delivery, e.g., recruiting of customers and installation of measures. We refer to the entities that perform these functions as ‘program implementers,’ who operate under contracts/agreements with the entity or entities managing the entire portfolio of ratepayer-funded programs.”
However in D.05-01-055, we also went on to say that where CCAs and other non-Investor-owned Utilities are concerned, “administrator” does not mean “administrator” in the sense of those who choose which programs to fund, and those who administer portfolios of chosen programs. For purposes of Section 381.1, we allowed CCAs and other non-IOUs to take on, at most, a “program implementer” role, stating:

We interpret “administrator” in this context [referencing Section 381.1] to mean an entity implementing an energy

12 D.05-01-055 at 2.

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efficiency program which is the subject of Section 381, which authorizes the expenditure of certain funds on energy
efficiency programs. This contrasts with the Commission’s energy efficiency policy manual which distinguishes
“administrators” from “implementers.”
With respect to CCAs in particular, in D.05-01-055 we stated:

We reiterate our interpretation of “administrator” for
purposes of [Section 381.1] as meaning “any entity
implementing an energy efficiency program that is the subject of Section 382, which authorizes the expenditure of certain funds on energy efficiency programs.” We believe this is consistent with the competing interests articulated in
Section 381.1 as well as the requirements for handling
ratepayer money, as discussed above.

At the same time, we have recognized that “we may
ultimately find that CCAs are appropriately independent agencies that should have considerable deference to use Section 381 funds” and have reserved broader issues about CCAs role and discretion for later determination. . . . Nothing in this decision prevents us from modifying the process for allocating PGC funds to CCAs in the future.13
We reaffirmed our definition of the term “administrator” for purposes of Section 381.1 on rehearing in D.05-07-046. In that decision, we reiterated that “[Section 381.1] does not grant non-IOUs the authority to hold, manage or control ratepayer funds collected for the energy efficiency programs,” but did nothing to restrict our future options with respect to CCAs as far as distributing funds from non-bypassable electric distribution charges to them. 14 13 D.05-01-055 at 85-88 (footnotes omitted, emphasis added). 14 Section 381(a) requires the Commission to establish “a nonbypassable element of the local distribution service” to fund energy efficiency programs. The public goods charge (PGC) was the non-bypassable charge in place when we issued D.05-01-055, but it expired on January 1, 2012. In D.11-12-038, the Commission authorized additional Footnote continued on next page
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We now conclude that it is appropriate for CCAs to be EE program “administrators” in the same sense that IOUs are “administrators.” To become administrators, CCAs may undertake program choice and portfolio management functions, in addition to or as an alternative to undertaking program implementation functions. CCAs need not apply to IOUs for energy efficiency funding, but should instead apply directly to the Commission for funding, as we discuss in more detail below.

In reaching this conclusion, we recognize that the IOUs have been and remain opposed to anyone other than themselves becoming “administrators.” SCE argues that:

Although the legislature has since adopted SB 790, as
described below, based on California law, the legislature is presumed to be aware of the Commission’s long standing
interpretation of the word administrator in Section 331.1.

Therefore, since the legislature took no active steps to change that definition when enacting SB 790, this definition must stand. The Commission cannot simply ignore its previous legal findings and reach a different conclusion on the legality of non-IOU energy efficiency program administration.

We are not persuaded. In adopting SB 790, the legislature was presumably aware not just of our interpretation of the word “administrator,” but also of the debate around whether CCAs would submit energy efficiency programs to the Commission or to the IOUs. By enacting SB 790, and prohibiting us from delegating to IOUs the authority to review CCA energy efficiency applications,

electric procurement charges to ensure ongoing funding of all cost-effective electric energy efficiency, pursuant to other statutory mandates. IOUs track these charges in their Procurement Energy Efficiency Balancing Account (PEEBA), or in related accounts.

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the legislature effectively put its hand on the scale in favor of CCAs applying to us for funding of programs CCAs administer, without IOU intermediation.

SCE’s argument regarding our alleged “previous legal findings” precluding CCA program administration merit also lacks merit. There is only one conclusion of law (COL) in D.05-01-055 that discusses CCA programs. It expressly reserves to a later decision the question of how we would address CCA energy efficiency programs.15
SCE’s underlying concern that directing EE funds to CCAs would violate the public trust, and so is illegal, is also misplaced. SCE contends that: “The Commission must retain regulatory jurisdiction over energy efficiency program administration to ensure that energy efficiency funds are properly spent,” and that is what we have done here. This decision, by making CCAs largely subject to the same rules as IOUs, provides mechanisms to, as SCE requests, “ensure that energy efficiency funds are properly spent.”
16 As CCSF points out, “in PG&E Corp. v. Public Utilities Commission, 118 Cal. App. 4th 1174 (2004), the California Court of Appeals upheld the Commission's jurisdiction to enforce conditions placed on the establishment of non-jurisdictional entities -- public utility holding companies -- even though these conditions were not enshrined in a contract.” The analogy is instructive

15 D.05-01-055, COL 6: “Nothing in today’s decision prevents the Commission from modifying the process for allocating PGC funds to Community Choice Aggregators in the future, or revisiting the question of whether CCA customers should be relieved of their responsibility for energy efficiency PGC and procurement surcharges if the CCA elects to take over these functions.”
16 SCE’s (U338-E) Opening Comments on Administrative Law Judge’s Ruling, dated August 10, 2012 at 4.

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insofar as it demonstrates that the Commission can have jurisdiction over what might otherwise be non-jurisdictional entities. We have before us an even easier case, as we have specific statutory authority in Section 381.1 to establish regulatory processes over, inter alia, CCAs. The one currently operating CCA – MEA – does not dispute the existence of the Commission’s regulatory authority over CCAs applying under Section 381.1(a)-(f). 17 CCSF similarly
recognizes the Commission’s enhanced oversight role over such applications. 18 The Commission retains regulatory authority over energy efficiency funds directed to CCAs for energy efficiency programs under Section 381.1(a)-(d), and so we can direct their transfer to or remittance from (in, e.g., the case of unspent funds from the 2013-14 portfolios)19 the relevant CCA without additional statutory authority. Thus, we have statutory authority to establish a process to ensure CCAs properly administer energy efficiency funds, and we accordingly condition funding of CCA administration of energy efficiency programs on our

17 “MEA has already acknowledged in its opening comments that because the funds being provided through subsection § 381.1(a) are collected from all ratepayers, not just from the CCA’s customers, the Commission has further regulatory discretion over CCA energy efficiency programs administered through this pathway.” MEA Reply Comments on Proposed Formula, Definitions, and Procedures for Community Choice Aggregators to File Energy Efficiency Program Proposals for 2015 and Beyond, dated August 17, 2012, at 4.
18 “Detailed Commission oversight is more justified in the case of an application, and in effect, the ALJ [June 20, 2012] Ruling provides for applications pursuant to subsection 381.1(a) to resemble those filed by the IOUs.” Reply Comments of The City and County of San Francisco on the Administrative Law Judge’s Ruling Regarding Procedures for Community Choice Aggregators to Administer energy efficiency Programs, dated August 17, 2012 at 6.
19 See D. 12-11-015, at 134 (COL 12, requiring return to ratepayers of unspent funding authorized in that decision).

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review and approval of CCA applications to us. Before we direct energy efficiency funds to CCAs, we will review the CCA portfolios. We do not see the processes we adopt here giving rise to the sorts of legal problems we envisioned in D.05-01-055, in which we addressed proposals for a nearly wholesale turnover to third parties of decision-making authority for energy efficiency funding.20 We take cognizance of the admonition that SB 790 added to subsection (d) of Section 381.1, barring our delegation of review of CCA applications to the IOUs. CCAs are to apply directly to the Commission for administration of energy efficiency programs.

This brings us to the particulars of how to integrate CCAs into an administrator role for purposes of applications made pursuant to Section 381(a)-(d).

3.2.2. The Policy Manual
The Policy Manual is a Commission staff-prepared compendium of our decisions and resolutions relating to energy efficiency, and it also includes some additional staff-prepared gloss on those decisions. Commission staff has revised the Policy Manual periodically, updating it to incorporate regulatory changes that have come along since the most recent edition. It is a convenient reference

20 SCE brings to our attention the following quote from D.05-01-055, but fails to give the last portion of it appropriate weight: “[W]e must have the authority to hold the administrator(s) fully accountable for delivering energy savings without recourse to litigation. We believe that this authority is clearly established with our regulatory oversight of the IOUs, but considerably less certain under the proposals for independent administration in this proceeding.” As we have just noted, the proposals at issue in D.05-01-055 involved far less oversight of energy efficiency funding recipients than the process we put in place here for CCAs.

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for program administrators. It necessarily lags, however, behind our most recent actions (e.g., our issuance of this decision).

Parties have questioned whether CCAs that are program administrators must comply with the Policy Manual. In comments, TURN expresses a generalized concern over requiring CCA compliance with the Policy Manual, while MEA and CCSF outright oppose it on the grounds that, because they are municipalities whose customers are also their voters, they are capable of setting fair policies for themselves in a way that IOUs are not. Conversely, NRDC and the IOUs urge requiring CCAs to comply with the Policy Manual.

Whether CCAs should comply with the Policy Manual is not really the right question. As we have discussed, the Policy Manual is not itself a Commission decision or resolution. The real question is whether CCAs should comply with the underlying Commission decisions and resolutions, and staff implementation of them. We conclude that they should.

Since CCAs will administer programs at the discretion and selection of the Commission, they should be subject to the Commission’s policies and rules governing the energy efficiency funds overall. We intend to enforce uniform administrative standards to the maximum extent possible. CCAs may well be subjected to a form of regulation by their customer/voters, but the applications at issue here potentially include programs administered for, and drawing funds from, a larger pool of ratepayers. Therefore, we expect that CCAs will comply with our prior decisions and with staff implementation of them, as reflected in the Policy Manual, except to the extent that (a) something in the Policy Manual conflicts with this decision or (b) compliance is impossible because of some reason unique to CCAs as distinct from IOUs. We discuss particular requirements in more detail below.

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3.2.2.1. Cost-Effectiveness
Several parties have queried whether the current cost-effectiveness criteria applicable to IOU portfolios should apply to CCAs. In D.12-11-015, the decision authorizing energy efficiency portfolios for 2013-14, we expressly declined to set a minimum threshold cost-effectiveness requirement for CCA proposals under Section 381.1(a). However, in that decision we stated that we intended to revisit the matter going forward, and we do so now here.

Section 381.1 requires that all energy efficiency programs be cost-effective.

In the abstract, we see no compelling reason why CCA proposals should be treated any differently than the IOUs’ with respect to cost-effectiveness. The Commission’s statutory responsibility is to approve cost-effective energy efficiency portfolios on an overall basis for any and all administrators, a group that includes CCAs. However, we recognize the practical challenges a CCA faces in establishing a new program administration infrastructure and developing and implementing new programs. We understand that such programs may initially face cost-effectiveness challenges.

Accordingly, the energy efficiency portfolios of CCAs will be subject to a lower cost-effectiveness threshold Total Resource Cost (TRC) ratio of 1.0 rather than the IOUs’ current 1.25 threshold TRC ratio for the first three years21 that a CCA is a program administrator. We will also exempt CCAs from caps on administrative costs for the same three years. Thereafter, CCA program administrators will be subject to the same cost-effectiveness standards as IOU program administrators. This policy will allow the CCA to establish itself and

21 Measured from the mailing date of a Commission decision approving a CCA’s first application to become a program administrator under Section 381.1.

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explore a cost-effective mix of energy efficiency programs while protecting ratepayers over the long term. We encourage CCAs to continue to target hard to reach markets and offer innovative programs, but also employ a mix of programs which will result in a cost-effective energy efficiency portfolio.

Except for first-time applicants, we will review CCA proposals on the same timeline with IOU portfolios. First-time applicants may file their applications when prepared to do so.

The IOUs request that the Commission require “the CCA applicant, if proposing a resource program(s), also provide a contingency plan if its program(s) fails to meet energy saving and demand reduction goals.”22 We have not imposed such a requirement on the IOUs, and decline to do so with CCAs.

Requiring CCA programs to meet the same cost-effectiveness standards as the IOUs raises the issue of CCA programs overlapping with IOU programs.

PG&E asserts:
that any duplication that creates customer confusion, unfairly treats one set of customers versus other customers, or uses ratepayer funds inefficiently is inappropriate. For example, MEA’s proposals are duplicative of existing statewide low income programs (in 2012) and residential, multi-family, and commercial programs
(in 2013-2014).23
We have no evidence that CCA programs would lead to any of the problems PG&E articulates in the quote above. For the moment, we merely note

22 Joint Utility comments at 8.
23 Reply Comments of Pacific Gas and Electric Company (U 39 M) Regarding Procedures for Community Choice Aggregators to Administer Energy Efficiency Programs, dated August 17, 2012.

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that we are aware of this possibility. In the absence of data, these concerns are merely speculative and do not warrant action now on our part.

3.2.2.2. Evaluation, Measurement, and
Verification (EM&V)
In D.05-01-055, the Commission split evaluation activities along two tracks:
(1) “impact evaluation” that assesses program performance (conducted by the Commission); and (2) “process and market characterization studies” that support program improvement (conducted by the IOUs).

The Commission retained the ultimate responsibility for evaluating, measuring, and verifying program impact. The Commission determines how much energy a program actually saves, and the Commission assesses actual program benefits and costs.

To promote uniformity, and to ensure cost-effectiveness, the same rules for the EM&V should apply to all program administrators, CCAs and IOUs alike.

For reference, Commission staff shall include CCA-administered programs in the scope of its evaluation.

As is common practice amongst the IOU administered programs, CCAs may also undertake their own process evaluations and market studies in conjunction with Commission oversight in the same manner as authorized for IOU energy efficiency projects pursuant to D.12-11-015 and D.10-04-029.

3.2.2.3. Energy Efficiency Funding Sources
Funding for energy efficiency programs in IOU (and so in CCA) service territories comes from two sources:
(1) Non-bypassable charges from electric distribution rates, which the IOUs track in their respective PEEBAs and
(2) Gas Public Purpose Program (Gas PPP) Surcharges.

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In D.11-12-038, to avoid rate shifts amongst customers, the Commission ordered the IOUs to fund the PEEBA by collecting on the basis of usage, just as they had collected the Public Goods Charge before its expiration. This also parallels the treatment of the Gas PPP surcharge. As a result, the IOUs collect the charges that fund the PEEBA and the Gas PPP on a non-bypassable basis from all customers, including CCA customers. For example, PG&E, not MEA, collects the money that funds the EE programs that MEA administers.

With respect to charges for electricity savings programs, Section 381 requires that utilities collect non-bypassable charges to fund energy efficiency programs through electricity distribution rates. The IOUs collect distribution rates including non-bypassable charges from all customers in the IOUs’ service territories, even those served by CCAs; CCAs do not provide distribution services. If and when we approve future CCA applications to administer energy efficiency programs, we may direct IOUs to transfer funds to CCAs at approved levels for approved energy efficiency programs.

CCAs may wish to administer programs with both electric and gas components. Section 381.1(a)-(d) speaks only to the non-bypassable charges collected by “each electrical corporation,” i.e., those tracked in the PEEBA. It is our policy that gas funds should pay for gas efficiency programs, and electric funds should pay for electric efficiency programs. In D.09-09-047, we stated that “For the combined utilities, PG&E and SDG&E, the portfolio budgets should split the electric and gas cost recovery according to an expense ratio aligned with R.09-11-014 ALJ/TOD/sbf
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the portfolios for savings/budgets. This method was adopted under D.05-09-043 for PG&E and equates to roughly 85% electric and 15% gas.”24 CCAs are not combined utilities. They are responsible solely for electric “generation procurement activities on behalf of”25 their customers. They provide no gas commodity or service. The code section that provides funding for CCA energy efficiency administration, Section 381.1 deals only with programs funded with electric revenues, as Section 381 provides for funding through a non-bypassable charge that electrical (not gas) corporations collect.

In view of the foregoing, CCAs submitting applications to administer programs pursuant to Section 381.1 will receive funding only for programs for electricity savings. How we will account for electricity savings separately for gas savings for purposes of determining funding of CCA-administered energy efficiency programs that offer both is something we will resolve in the context of an application, when and if we face the issue.

We are not prohibiting CCAs from administering programs that have a gas-savings element (e.g., building retrofits). CCAs are free, of course, to administer programs that lead to gas savings as well as electricity savings.

However, we will not direct IOUs to provide CCAs with money from the non-bypassable charge that Section 381.1 mandates (i.e., the funds in the PEEBA) to pay for such savings. Neither do we see statutory authority under Section 381.1 to require payment to CCAs of gas public purpose funds. 26 CCA

24 D.09-09-047 at 319.
25 Section 366.2(a)(5).
26 Party comments have focused on Section 381.1, which addresses only funds from electric customers. Gas public purpose funds are governed by Section 890, not Section Footnote continued on next page
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program administrators will have to find alternative sources of funding for the gas element of programs that provide both gas and electricity savings.

3.2.3. Application Details
For the 2013-14 portfolio, we directed CCAs to file proposals as an application. Going forward, we will continue to review any CCA application under Section 381.1(a)-(d) through the application process, not via advice letter.

CCAs should in general be subject to the same timing for applications to the Commission as the IOUs. CCSF observes in its comments that “requiring CCAs to wait until the next portfolio cycle would be unfair and would deprive CCAs of the ability to access energy efficiency funds during the crucial start-up and initial opt-out periods.” MEA echoes this concern.
27 In recognition of this
concern, we adopt an exception to this general rule. A CCA may make its first application to administer energy efficiency programs. Therefore, subsequent CCA filings should be on the same schedule as IOU filings.

381.1. Section 890 predates legislation authorizing CCAs, and so does not speak one way or the other as to CCA administration of “cost-effective energy efficiency and conservation activities” using Section 890 funds. We do not address here whether a CCA might be eligible to receive Section 890 funds, as we have no record on this issue.

That issue may be an appropriate subject for the new energy efficiency rulemaking, R.13-11-005.

The one model we currently have of an electric-only utility administering hybrid gas and electric programs (e.g., whole-house retrofits) is that of SCE, as SCE pointed out in its comments on the proposed decision. SCE partners with SoCal Gas and does not actually collect or disburse gas public purpose funds. We would expect CCAs to similarly partner with the gas company in their service territory. 27 Marin Energy Authority’s Comments on Proposed Formula, Definitions, and Procedures for Community Choice Aggregators to File Energy Efficiency Program Proposals for 2015 and Beyond, dated August 10, 2012, at 4.

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CCA applications will be subject to the same requirements as to contents as those of IOUs. CCAs should consult with Commission staff early in the process for additional guidance in developing the application, as well as review the Policy Manual.

3.2.4. Election Option Under Section 381.1(e) and (f)
As noted previously, SB 790 modified Section 381.1 to give CCAs two options for energy efficiency program administration. We have already discussed the first option. The second option is that the CCA could “elect” to become an administrator for cost-effective energy efficiency and conservation programs, subject to Commission certification of a plan. Options available under Section 381.1 for CCAs to administer energy efficiency programs are quite distinct from each other. Assembly Bill 117 established the application option in 2002. The election option was added to Section 381.1 in 2011 by SB 790.

Pursuant to SB 790, the application option available to “any” prospective non-IOU third-party energy efficiency administrator is “subject to an aggregator’s [CCA’s] right to elect to become an administrator pursuant to [the election option under] subdivision (f).” (Section 381.1(a).) SB 790 thus subordinates a third-party’s application to a CCA’s right to elect to administer energy efficiency programs for its customers.

PG&E argues that because “the PGC expired by its own terms on January 1, 2012 . . . and thus PG&E is no longer collecting any PGC or energy efficiency funds that are subject to ‘election’ by CCAs under Sections 381.1(e) and R.09-11-014 ALJ/TOD/sbf
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(f).”28 This argument is unavailing. As CCSF has noted, Section 381.1(e)’s election provisions depend, not on the PGC as such, but rather on the establishment of “a non-bypassable charge authorized by the commission” for energy efficiency programs. The PGC has expired, but the commission has authorized the PEEBA, another “non-bypassable charge,” to fund electricity energy efficiency programs.

The apparent purpose of SB 790’s additions to Section 381.1 is to give CCAs – and only CCAs – a simpler route to become the administrator of EE and conservation programs. SB 790’s addition of the “election” option under subdivisions (e)–(g) to Section 381.1 thus stands in marked contrast with the preexisting, more discretionary opportunity for “any party” to “apply” to be an EE program administrator under subdivision (a). This new language underscores the two distinct options available to a CCA seeking to administer EE funds and highlights the Legislature’s desire to greatly simplify the process by which CCAs can administer EE programs for their own customers.

For program year 2012, MEA requested funding under sections 381.1(e) and (f). Resolution E-4518 certified MEA’s plan and set forth general rules concerning filings under Section 381.1(e) and (f). We find that those rules are still appropriate to certify a CCA’s plan and we restate them in this decision.

We find that the resolution process is reasonable and appropriate for certifying a CCA plan filed pursuant to Section 381.1(e) and (f). To place a plan before the Commission, CCAs should file an advice letter that (in addition to

28 Opening Comments of Pacific Gas and Electric Company (U 39 M) on Procedures for Community Choice Aggregators to Administer Energy Efficiency Programs, dated August 10, 2012 at 3.

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meeting the substantive requirements we set forth below) conforms to the Tier 3 Advice Letter provisions of General Order 96-B. Such a proposed plan will thereafter be subject to the process applicable to Tier 3 Advice Letters as set out in General Order 96-B. The advice letter is not to be considered either effective or approved until a Commission resolution, or decision if necessary, actually approves the CCA’s plan. (See GO 96-B, General Rule 7.3.1.) CCAs should serve their advice letters on the service list from the nearest IOU’s pending energy efficiency plan application proceedings, or, if no such proceeding is pending, on the service list from the last such proceeding.

We detail below what the Commission will consider in evaluating such CCA filings.

3.2.4.1. Funding Determination
First, we establish whether the funding requested in the CCA’s proposed plan is within the forecasted maximum amount of funds the CCA would be eligible to collect. To determine the maximum amount, we will use the formula proposed in the June 20, 2012 ALJ ruling to consider MEA’s plan, as follows:

CCA maximum funding = Total electricity energy efficiency nonbypassable charge collections from the CCA’s customers – (total electricity EE nonbypassable charge collections from the CCA’s customers * % of the applicable IOU portfolio budget that was dedicated to statewide and regional programs in the most recently authorized program cycle).

Commenting parties had no objection to this formula per se, but differed over the particulars of the inputs, as we discuss below.

3.2.4.2. Total Energy Efficiency Collections from CCA
Customers
In the event of a CCA filing a proposed plan under Section 381.1(e and f), we direct Commission Staff to determine, in coordination with the relevant IOU R.09-11-014 ALJ/TOD/sbf
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and CCA, the actual and forecasted amounts of non-bypassable charges likely to be collected from the CCA’s customers over a reasonable collection period to fund energy efficiency programs.

Section 381.1(e) speaks only to the source of a CCA’s funding (“…funds collected from the aggregator’s electric service customers and collected through a non-bypassable charge authorized by the commission ….”). It is silent as to whether the period of fund collections that a CCA is eligible to receive must be the same as the period in which a CCA plans to spend these funds to administer programs.

PG&E “does not agree with defining ‘Collections’ to include funds collected or reasonably expected to be collected from the date of filing of a CCA’s energy efficiency proposal.” PG&E would limit “Collections” in “include [only] funds collected or reasonably expected to be collected from the date of Commission approval of the CCA proposal.” PG&E is concerned about CCAs gaming the timing of their applications to collect revenues while proposed plans are pending.

Nothing in the statute requires that CCAs administering energy efficiency programs pursuant to the election option are entitled only to funds collected from the date the Commission certifies the CCA’s plan. The Commission is therefore able to order that IOUs transfer the energy efficiency funds collected from a CCA’s customers from a date the Commission deems reasonable for the plan period.

Funding collection and program periods do not always correspond for IOU programs, and we see no compelling reason to ensure they do so in consideration of CCA proposals. Notably, the IOUs’ collection periods and their energy efficiency funds expenditure periods do not necessarily match – in fact, R.09-11-014 ALJ/TOD/sbf
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the IOUs collect non-bypassable energy efficiency charges on an ongoing basis with changes to the charges lagging behind changes in approved funding levels.

IOUs often collect more money than they spend in the early years of an energy efficiency program cycle, and conversely, often collect less money than they spend in the latter years as energy efficiency program expenditures ramp up.

We decline to impose different requirements for CCAs than for IOUs here.

Similarly, at the back end of each portfolio cycle there may be unspent or uncommitted funds left over from the sun-setting portfolio. As to disposition of such amounts, we likewise decline to treat CCAs differently from IOUs. We permit IOUs to carry such funds across portfolio periods. As MEA points out, there is no reason why the Commission should not extend such an opportunity to CCA program administrators as well.29

3.2.4.3. Funding Exclusions
Section 381.1 (e) states:

The impartial process established by the commission shall allow a registered community choice aggregator to elect to become the administrator of funds collected from the
aggregator's electric service customers and collected through a non-bypassable charge authorized by the commission, for cost-effective energy efficiency and conservation programs, except those funds collected for broader statewide and
regional programs authorized by the commission. (Emphasis added.)
CCSF expresses concern that “the IOUs will have an incentive to characterize as many programs as possible as ‘statewide’ or ‘regional’ in order to

29 MEA Reply Comments on Proposed Formula, Definitions and Procedures for [CCAs] at 6.

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limit the funds available to CCAs.”30 CCSF requests us to look closely at:
“1) which programs truly are statewide and regional programs, and 2) which approaches legitimately benefit from a more local approach.”31 In contrast, PG&E generally agreed with the ALJ’s proposed definitions of “Statewide programs” and “Regional programs.”32
In determining which programs were considered “regional” and “statewide” in nature, we find it reasonable to adopt the funding formula and definitions proposed in the June 20, 2012 ALJ ruling. The definitions provided in that ruling, which we adopt here, are as follows:
 “Regional Programs” - Programs offered to all eligible customers throughout an individual IOU’s service territory in which a CCA is offering service, but not necessarily offered in other IOU service territories. This includes state and institutional government partnerships. This does not include any programs that are offered only in a geographic subset of an IOU territory.
 “Statewide Programs” – Programs, as defined and
designated by the Commission, that are offered throughout the four IOU service territories on a generally consistent basis. Evaluation, Measurement and Verification budgets are included in statewide programs, as these budgets are

30 Comments of The City and County of San Francisco on The Administrative Law Judge’s Ruling Regarding Procedures for Community Choice Aggregators to Administer Energy Efficiency Programs, dated August 10, 2012, at 3. 31 Comments of The City and County of San Francisco on The Administrative Law Judge’s Ruling Regarding Procedures for Community Choice Aggregators to Administer Energy Efficiency Programs, dated August 10, 2012, at 3. 32 Opening Comments of Pacific Gas and Electric Company (U 39 M) on Procedures for Community Choice Aggregators to Administer Energy Efficiency Programs, dated August 10, 2012, at 6-7.

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overseen by Commission staff across all four IOUs on a
consistent basis.

In order to calculate the funding exclusion, the Commission will review the relevant IOU’s most recently approved portfolio budget, and sort programs into three categories: (1) “Regional Programs,”(2) “Statewide Programs,” or (3) “Other.” We will look at each program’s rules to decide the appropriate categorization.
33 Thus as defined, the statewide and regional program budgets will be determined as a percentage of the overall portfolio, and the eligible collections calculated according to the formula above. As examples from the 2013-2014 IOU portfolios, Zero Net Energy Pilot and SCE’s County of Los Angeles Energy Efficiency Partnership and Non-Residential Sustainable Portfolios programs should also be treated as regional programs and excluded from the calculation.

As with plans under Section 381.1(a)-(d), some CCA programs under subsections (e)-(f) may have both electric and gas components. Gas funds should pay for gas efficiency programs, and electric funds should pay for electric efficiency programs. To fund programs under Section 381.1(a)-(d), CCAs are only eligible to receive non-bypassable charges collected by electrical corporations. They are, accordingly, limited to requesting funds for electric energy efficiency programs.

33 We note that the on-bill financing was approved as a “local program” as that term is in PG&E’s Application 08-07-031, approved as modified in D.09-09-047. But, because the on-bill financing program meets the definition of a regional program as set forth in this resolution, we categorize it as such herein.

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3.2.4.4. Review of CCA Proposed Energy
Efficiency Plans
Pursuant to Section 381.1(f), the Commission must certify that a CCA plan meets six criteria, specified in paragraph (f)(1)-(6) of the statute.34 Accordingly, we will review each plan and make findings on each criterion. We discuss each criterion in the following subsections.

3.2.4.4.1. Consistency with the Goals of the
programs established pursuant to
Section 381.1 and Section 399.4.

Section 381.1 encourages the administration of cost-effective energy efficiency and conservation programs by CCAs and other non-IOU administrators. Section 399.4(a) states that prudent energy efficiency

34 “(f) A community choice aggregator electing to become an administrator shall submit a plan, approved by its governing board, to the commission for the administration of cost-effective energy efficiency and conservation programs for the aggregator’s electric service customers that includes funding requirements, a program description, a cost-effectiveness analysis, and the duration of the program. The Commission shall certify that the plan submitted does all of the following:

1. Is consistent with the goals of the programs established pursuant to this section and Section 399.4.

2. Advances the public interest in maximizing cost-effective electricity savings and related benefits.

3. Accommodates the need for broader statewide or regional programs.

4. Includes audit and reporting requirements consistent with the audit and reporting requirements established by the commission pursuant to this section.

5. Includes evaluation, measurement, and verification protocols established by the community choice aggregator.

6. Includes performance metrics regarding the community choice aggregator’s achievement of the objectives list in paragraphs (1) to (5), inclusive, and in any previous plan.

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investments should continue to be made in order to “produce cost-effective energy savings, reduce customer demand, and contribute to the safe and reliable operation of the electric distribution grid.” IOU energy efficiency programs currently authorized by the Commission must satisfy these criteria, and it is reasonable to expect that any future CCA program activities will do the same.

3.2.4.4.2. Advances the public interest in
maximizing cost-effective electricity
savings and related benefits
Section 381.1(f)(2) requires this Commission to make a finding as to whether a CCA’s plan “advances the public interest in maximizing cost-effective electricity savings and related benefits,” in order to certify (or not) the plan on the basis of whether that condition is met. It is reasonable and appropriate to make this determination by referring to current Commission rules and policies governing energy efficiency cost-effectiveness. As stated in the energy efficiency Policy Manual: “This Commission relies on the TRC as the primary indicator of energy efficiency program cost effectiveness, consistent with our view that ratepayer-funded energy efficiency should focus on programs that serve as resource alternatives to supply-side options.”
Any potential CCA program plans should find ways to maximize cost-effectiveness, and at minimum, exceed a TRC of 1.0, for the first three years following their initial certification request, as with applications under Section 381.1(a)-(d). For that period we will also exempt CCAs from administrative cost caps. Thereafter, CCA’s will be subject to the same cost-effectiveness tests as IOUs.

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3.2.4.4.3. Accommodates the need for broader
statewide and regional programs
A CCA should include in its plan marketing and branding strategies to minimize customer confusion, and to otherwise distinguish between planned-for CCA programs and any similar statewide or regional programs that may also be ongoing during the time the proposed CCA programs will be in place if approved.

3.2.4.4.4. Includes audit and reporting
requirements consistent with the
audit and reporting requirements
established by the Commission
pursuant to Section 381.1.

The CCA should conduct financial and management audits of its energy efficiency programs and provide a copy of the audits to the Commission upon request. The financial audit will consist of a review of the financial statements of the CCA’s energy efficiency operations to determine that the statements are accurate, complete, and consistent with Commission policy and standard accounting practices. The management audit will assess the CCA’s management procedures and the effective use of resources in implementing the energy efficiency portfolio.

3.2.4.4.5. Includes EM&V protocols established
by the CCA.

Section 381.1(f)(5) requires the CCA to establish its own EM&V protocols.

The Commission’s role is to certify that a CCA’s plan includes EM&V protocols.

That said, we encourage CCAs to use the same CPUC EM&V requirements that apply to other energy efficiency programs. In its advice letter, the CCA should describe clearly and completely the EM&V protocols it will use.

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3.2.4.4.6. Includes performance metrics
regarding the CCA's achievement of
the objectives listed in paragraphs (1)
to (5), inclusive, and in any previous
plan.

The CCA should provide reports that meets the requirements and format the Commission has established for IOUs and RENs, as set forth in the Policy Manual (in the current edition, at Chapter V, and in Appendix D).

3.3. The “Safeguards” Issue
Events have overtaken our consideration of “safeguard” issues in this proceeding. Since the parties filed their comments in late 2010, we have adopted a Code of Conduct and Enforcement Mechanisms Related to Utility Interactions with Community Choice Aggregators, Pursuant to SB 790 (D.12-12-036). That decision broadly safeguards the interests of CCAs vis. IOUs. The rules we adopted in D.12-12-036 include a rule specifically prohibiting use of program funds “for inducing the local government not to participate in a community choice aggregation program.” (Rule 17.) D.12-12-036 also establishes an expedited complaint procedure that CCAs can invoke in response to an alleged rules violation, including “a violation of an electrical corporation’s obligation to cooperate fully with community choice aggregators or community choice aggregation programs.” These rules address the specific concerns intervenors raised in this proceeding.

In view of D.12-12-036, we do not see a need to adopt special safeguards relating exclusively to energy efficiency programs. If alleged IOU misuse of energy efficiency funds should again become an issue, a mechanism is in place to respond to those allegations.

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4. Categorization and Need for Hearing
In initiating the subject rulemaking, we initially categorized this proceeding as quasi-legislative, and determined that hearings would not be necessary. We subsequently recategorized the proceeding as ratesetting.

We affirm the categorization of the proceeding as ratesetting, and the determination that hearings are not necessary.

5. Comments on Proposed Decision
The proposed decision (PD) of the ALJ in this matter was mailed to the parties in accordance with Section 311 of the Public Utilities Code and comments were allowed under Rule 14.3 of the Commission’s Rules of Practice and Procedure. Comments were filed on October 21, 2013.

5.1. Comments re both: (1) applications under
Section 381.1 (a)-(d) and (2) advice letters under Section 381.1(e)-(f)

5.1.1. Compliance with the Policy Manual
The PD requires CCA compliance with the Commission’s prior decisions and resolutions concerning energy efficiency program administration unless it is essentially impossible to do so. MEA’s comments ask for “the Commission to make exception where significant evidence exists that the proposed requirement is overly burdensome or inappropriate for a CCA administrator model.” We faced this issue in the context of approving applications in D.12-11-015.

What we said there remains true today:
[F]or CCA programs where the CCA has applied to utilize funds from all ratepayers to deliver programs to customers beyond their own specific retail customer base, CCAs should R.09-11-014 ALJ/TOD/sbf
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also be subject to the same rules and policy manual
requirements as any other program implementer.35
That said, we recognized in D.12-11-015, and in the PD as well, that there may be particular instances where it is inappropriate for a rule developed in the context of IOU administration to apply to a CCA. CCAs are free to argue in connection with their portfolio applications or advice letters that they cannot comply with a particular element of a prior decision or resolution.

5.1.2. The “on-ramp” for first-time CCA administrators
The PD would require first-time CCA administrators to meet a TRC of 1.0 for the first three years of their portfolios, as compared to the 1.25 TRC that incumbent administrators must currently meet. The PD also exempts first-time administrators from the PAC for three years. Our intent is to give CCAs an “on-ramp” to an energy efficiency administrator role by easing cost-effectiveness standards while a CCA is starting up its programs while we still ensure that a CCA’s portfolio is cost-effective in an absolute sense.

5.1.2.1. Party Comments
MEA and ORA contend that the on-ramp is still too steep. The gist of their comments is that the IOUs have largely occupied the market for the most cost-effective programs (e.g., industrial programs), and that CCAs in any event tend to be best suited for delivering programs that tend towards the less cost-effective side (e.g., residential programs). The upshot of these factors is that CCAs will, according to these parties, have a hard time hitting a TRC of 1.0. This is particularly true in the early years of administration.

35 D.12-11-015, at 15.

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MEA proposes that, rather than (or in addition to) waiving the PAC, we exclude administrative costs from the TRC calculation altogether.

ORA proposes that we gauge cost-effectiveness by comparing individual CCA-administered program TRCs against IOU TRCs for the same or similar programs.

SCE contends that the proposed “on-ramp” is inappropriate, and that CCA administrators should be held to the same cost-effectiveness standards as the IOUs from the outset. The thrust of SCE’s argument is that cost-effectiveness is what we establish for the IOUs, and anything less is not “cost-effective” for purposes of Section 381.1.

5.1.2.2. Response to Party Comments
With the “on-ramp” we are trying to walk a fine line across (1) statutory requirements for cost-effectiveness; (2) common rules for all program administrators; and (3) a recognition of the practical realities CCAs face in starting to administer energy efficiency programs.

We historically resolved the tension among these concerns by rolling CCA programs up with IOU programs for purposes of measuring cost-effectiveness.

This approach is inconsistent with our decision here to place CCAs into an “administrator” role independent of IOU administrators. As independent administrators, CCAs must present cost-effective portfolios in their own right.

For this reason, we similarly decline to adopt DRA’s recommendations re: benchmarking cost-effectiveness against IOU results for individual programs.

We disagree with SCE that we must apply IOU cost-effectiveness standards to CCAs from the outset. We consciously set a bar for IOUs portfolios that is above the absolute bare minimum of cost-effectiveness. We can establish a lower standard for CCAs (and only temporarily at that) and still ensure that CCA R.09-11-014 ALJ/TOD/sbf
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portfolios are cost-effective, as Section 381.1 requires. That said, we are unwilling to go so far as to exclude all administrative costs from the TRC calculation during the on-ramp period, as MEA requests. As MEA’s start-up experience has shown, administrative costs in the early years can be substantial.

Excluding such costs would render the TRC a poor measure of cost-effectiveness.

MEA contends that we are placing an unsustainable burden on CCAs here; that we are forcing them into a “small box” that simply does not fit. We are not insensitive to these concerns, as should be apparent from the PD’s inclusion of an “on-ramp,” and as further elaborated in our response to comments below. The ultimate solution to the quandary MEA and ORA pose is for CCAs to engage in a mix of programs such that their portfolios are cost effective. The PD, as clarified herein, should allow them to do just that.

Alternatively, CCAs not able or willing to develop cost-effective portfolios may pursue non-cost-effective programs as implementers and as local government partners. CCAs do not need to be administrators if all they wish to do is implement a small suite of programs. If, as MEA and others assert, CCAs are better equipped than others to administer programs such as multi-family residential upgrades, we would expect IOU administrators to contract with CCAs to implement such programs.

5.1.2.3. The TRC for Year 4 and Thereafter
MEA and DRA both take issue with the PD holding CCAs to the same TRC as IOU administrators. Their concerns are much the same as with the on-ramp, as are their proposed changes to the PD.

We expect that CCAs can and will bring their portfolios in line with IOU TRCs within three years, and decline to change the PD on this point. There are R.09-11-014 ALJ/TOD/sbf
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several sub-issues that tie into how CCAs can achieve this goal, and we address these below.

First, SCE contends that a CCA is limited to providing energy efficiency services for its own customers, even under subsections (a)-(d). We see no such limitation in the language of those subsections. This is in contrast to subsections (e)-(f), which do expressly limit their application to a CCAs own customers. We see no reason why CCAs may not provide energy efficiency services to non-customers within the CCA’s jurisdictional footprint. We have already approved CCA outreach to such customers. When we approved MEA’s portfolio, it included programs that reached non-MEA customers within MEA’s boundaries.

Second, SCE and PG&E call the related question (under Section 381.1 (a)-(d) only) whether a CCA may provide services outside of its jurisdictional footprint. In other words, could a city that is a CCA offer energy efficiency services to customers in an adjacent city served by an IOU? This would appear to be a question of municipal law rather than utility law. Whether or not that is so, we have no record on this question, are not required to resolve it now, and so decline to do so. We can take the question up in the context of an application when and if a CCA applies for funding for program extending outside the CCA’s boundaries.

Third, Section 381.1, at subsections (a)(3) and (f)(3) requires that an administrator’s “proposed program [or submitted plan] . . . accommodates the need for broader statewide or regional programs.” MEA is concerned that the PD’s definition of “regional” programs locks CCA’s out of providing the most cost-effective programs, which tend to be regional or statewide. MEA proposes a R.09-11-014 ALJ/TOD/sbf
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definition of “regional” that would only include programs offered in more than one IOU service territory.

The real issue here is how CCAs should “accommodate” statewide and regional programs, as Section 381.1 requires. MEA’s seems to implicitly assume that a requirement that CCAs “accommodate” such programs means CCAs cannot administer them. Hence MEAs request that we define “regional” in a way that presumably excludes many programs from its ambit – thereby opening them up to MEA and other CCAs to balance their portfolios with higher-TRC programs.

We will not adopt MEA’s proposed definition of “regional,” which essentially makes “regional” co-extensive with “statewide.” We will, however, clarify that “accommodate” can mean more than just ceding the field to the IOUs.

If CCAs want to undertake regional or statewide programs for their customers, or for customers within their footprint (reserving to a later day the question of customers outside the CCA’s footprint), we see no prohibition on their doing so in Section 381.1. There are obvious practical implications to allowing CCAs to administer regional and statewide programs, including whether and how to deal with overlap between an IOU and CCA offering. We will address these issues when and if they arise in the context of particular programs and applications/advice letters rather than attempting to address them in the abstract now.

5.1.4. Counting CCA savings against IOU targets
Until now, we have treated CCA portfolios as part of IOU portfolios. We have sized IOU savings goals accordingly, so that the IOU goals include savings from CCA programs. The IOUs have asked that we clarify that CCA savings will still count against IOU goals, even though CCAs are separate administrators.

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We will count savings goals and the counting of savings results symmetrically. When we include expected savings from CCA programs in an IOU’s savings goals for a portfolio period, then the actual savings from the CCA programs should and will count towards meeting those goals, even if a CCA becomes a separate administrator during the portfolio period. If, in the future, we stop including expected CCA savings in IOU goals, we will also stop counting CCA savings towards an IOU meeting its goals.

5.1.5. Use of funds collected from electricity
customers to pay for gas programs
SCE, SDG&E, and SoCal Gas support the PD’s determination that gas funds should pay for gas efficiency measures, and electric funds for electric efficiency measures.

MEA argues that the PD errs in prohibiting the use of funds collected from electricity customers to pay for gas programs. MEA cites extensively to D.11-10-014 for the proposition that such “fund shifting” is not only permissible, but mandatory.

MEA reads D.11-10-014 too broadly. Indeed, it is partly in order to foreclose such a broad reading that we restate here our policy that money from electricity customers fund electricity programs, and money from gas customers fund gas programs.

We issued D.11-10-014 in response to Senate Bill (SB) 87, which among other things, authorizes the transfer of "up to $155,000,000 from the Gas Consumption Surcharge Fund" (Fund) to the state's General Fund, was chaptered on June 30, 2011. If the full amount allowed by law is transferred, there will only be approximately $21.6 million of the fiscal year 2011-2012 collections remaining in the Fund.

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Faced with the unacceptable prospect of virtually no funding for gas energy efficiency programs, we found that “we may as a matter of policy allow unspent electric EE funds to be used to make up for the loss of gas PPP funds.” We went on to say that: “This decision has no precedential value for future decision-making and is limited to the unique and unprecedented issue here, where the Legislature has for the first (and hopefully only) time authorized the transfer of gas PPP funds to help backstop state General Fund deficits.” Moreover, when the state courts enjoined the SB 87 transfer, we vacated D.11-10-014 in D.12-10-026. Accordingly, it is inapposite here, and MEA ought not have cited it. While nothing in Section 381 et seq. absolutely prohibits fund shifting (and nothing in the PD is to the contrary). D.11-10-014 is express that it was to be a one-time departure from our general policy of not shifting funds.

MEA also asserts that limiting funding to electric programs leads to discriminatory treatment vis. IOU program administrators. This complaint is not well taken. SCE, like MEA, is not a provider of gas services. It partners with the gas company in its territory to fund gas measures. MEA may do the same.36

5.1.6. Disposition of unspent/uncommitted funds
The PD permits CCAs to roll unspent and uncommitted funds forward towards subsequent portfolios. PG&E requests that we require unspent or uncommitted funds either be returned to the relevant IOU for return ratepayers, or credited against IOU’s subsequent revenue requirement (and also reduce a future payment to the CCA).

36 We have no record on, and so do not decide here, whether CCAs may apply directly to us for gas public purpose funds.

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If a CCA has money left over after a portfolio cycle, it must either use that money in the next cycle, or give it back to the relevant IOU. If returned, then the IOU must then return the funds to ratepayers. If not returned, however, treatment of the carry-forward by the CCA should be symmetric with how an IOU treats it analogous carry-forwards. i.e., if an IOU would decrease its revenue requirement to account for a carry forward of funds for a programs it administers, it could do so for a CCA remittance too.

We are not prescribing any particular formula, timing, or process here, just establishing a general guideline. Exactly how this plays out is something we will have to resolve in practice.

5.2. Comments re: only advice letters under Section 381.1(e)-(f)

5.2.1. Audit requirements
The IOUs call for us to impose the same audit requirements on CCAs as we impose on IOUs. The only requirement for audits in the PD arises out of Section 381.1(f)(4). That subsection requires that any “plan” submitted under subsection (e): “Includes audit and reporting requirements consistent with the audit and reporting requirements established by the commission pursuant to this section.” The requirement, then, is that the auditing requirements be “consistent” with those for IOUs. Not that they necessarily be the same (though that would appear permissible).

The PD appropriately allows CCAs flexibility to individually establish auditing procedures under subsection (f)(4). Section 381.1’s requirement of “consistency” does not require identical procedures. The process under subsections (e)-(f) is supposed to be simpler for CCAs than an application under (a), and so allowing CCAs some latitude to depart from precise compliance with IOU auditing requirements is appropriate.

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5.2.2. The form of the filing
MEA takes issue with the PD requiring filing of a Tier 3 advice letter for a plan under subsections (e)-(f). However, MEA’s request that the “CCA election process pursuant to §381.1(e)-(f) should be pursuant to a compliance filing subject to review and disposition by resolution” is exactly the process that a Tier 3 advice letter contemplates.37
PG&E, by contrast, supports this requirement, and asks us to restate that the full Commission rather than Commission Staff will decide whether to approve the advice letter. Again, this is already what a Tier 3 advice letter requires, and we decline to restate what is already in our General Orders.

5.2.3. Conformance with Section 399.4
The PD calls on CCAs to “do the same” as IOUs with respect to Section 399.4. MEA points out that subsection (f) requires only “consistency” with Section 399.4. MEA argues that Section 399.4 concerns distribution lines that CCAs may not own or operate. MEA asks that we modify the PD to require conformance rather than compliance with Section 399.4. PG&E opposes the change, contending that CCA’s do not need to be distribution facility owners or operators to do much of what Section 399.4 requires.

We decline to make the requested change. CCA’s energy efficiency portfolios can and will contribute to, inter alia , the “safe and reliable operation of the electric distribution grid”38 regardless of who operates or owns that grid.

37 See General Order 96-B, Energy Industry Rule 5.3.
38 Section 399.4.

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5.3. Comments re: the “Safeguards” issue
MEA requests, without discussion, that we appoint an “executive level” ombudsman to oversee disputes between CCAs and IOUs. We have no record on this proposal, and decline to address it now. We already have an extensive set of protections in place specifically for CCAs, as identified in the PD, as well as a more-general set of dispute resolution services available to the public.

6. Assignment of Proceeding
Mark J. Ferron is the assigned Commissioner and Todd O. Edmister is the assigned ALJ in this proceeding.

Findings of Fact

1. We have no evidence that CCA programs customer confusion, unfairly treats one set of customers versus other customers, or uses ratepayer funds inefficiently.

2. To promote uniformity, and to ensure cost-effectiveness, the same rules for EM&V should apply to all program administrators, CCAs and IOUs alike.

3. CCAs may also undertake their own process evaluations and market studies in conjunction with Commission oversight in the same manner as authorized for IOU energy efficiency projects pursuant to D.12-11-015 and D.10-04-029.

4. Funding for energy efficiency programs in IOU (and so in CCA) service territories comes from two sources: Non-bypassable charges from electric distribution rates, which the IOUs track in their respective PEEBAs; and, Gas PPP Surcharges.

5. The PGC has expired, but the commission has authorized another “nonbypassable charge” to fund electricity energy efficiency programs.

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6. The IOUs collect the charges that fund the PEEBA and the Gas PPP on a non-bypassable basis from all customers.

7. In part this collection is done because most of the programs funded from these funds are implemented on a statewide basis, and it is both inefficient and impractical to separate out benefits to just participating CCA customers.

8. The IOUs collect distribution rates, including non-bypassable charges from all customers in the IOU’s service territories, even those served by CCAs. CCAs do not provide distribution.

9. It is common practice amongst the IOU administered programs to undertake their own process evaluations and market studies in conjunction with Commission oversight.

10. CCAs should file their initial application to administer energy efficiency programs when prepared to do so. Subsequent filings should be on the same schedule as IOUs.

11. CCAs will operate programs at the discretion and selection of the Commission, and they should be subject to the Commission’s policies and rules governing the energy efficiency funds overall. We intend to enforce uniform administrative standards to the maximum extent possible. The CCA applications we authorize here are eligible to include a larger pool of ratepayers than just a CCA’s own customers.

12. Requiring CCAs to wait to apply to administer energy efficiency funds until the next funding cycle could deprive CCAs of the ability to access energy efficiency funds during the crucial start-up and initial opt-out periods.

13. It is our policy that gas funds should pay for gas efficiency programs, and electric funds should pay for electric efficiency programs. In D.09-09-047, we stated that “For the combined utilities, PG&E and SDG&E, the portfolio budgets R.09-11-014 ALJ/TOD/sbf
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should split the electric and gas cost recovery according to an expense ratio aligned with the portfolios for savings/budgets. This method was adopted under D.05-09-043 for PG&E and equates to roughly 85% electric and 15% gas.

14. CCA applications should be subject to the same requirements as to contents as those of IOUs.

15. For program year 2012, MEA requested funding under sections 381.1(e) and (f). Resolution E-4518 certified MEA’s plan and set forth general rules concerning filings under Section 381.1(e) and (f). We find that those rules are still appropriate to certify a CCA’s plan.

16. The resolution process is reasonable and appropriate for certifying a CCA plan filed pursuant to Section 381.1(f).

17. IOU energy efficiency programs currently authorized by the Commission must satisfy the requirements of Section 381.1 that effective energy efficiency and conservation programs by CCAs and other non-IOU administrators be cost effective. IOU energy efficiency programs currently authorized by the Commission must also satisfy the requirements of Section 399.4(a), which states that prudent energy efficiency investments should continue to be made in order to “produce cost-effective energy savings, reduce customer demand, and contribute to the safe and reliable operation of the electric distribution grid.” It is reasonable to expect that any future CCA program activities under Section 381.1(e)-(f) will also comply with Sections 381.1 and 399.4(a).

18. Section 381.1(f)(2) requires this Commission to make a finding as to whether a CCA’s plan “advances the public interest in maximizing cost-effective electricity savings and related benefits,” in order to certify (or not) the plan on the basis of whether that condition is met. It is reasonable and appropriate to make a determination of compliance with Section 381.1(f)(2) by referring to R.09-11-014 ALJ/TOD/sbf
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current Commission rules and policies governing energy efficiency cost-effectiveness.

19. Any potential CCA program plans should find ways to maximize cost-effectiveness, and at minimum, exceed a TRC of 1.0 for the first three years following their initial certification request, as with applications under Section 381.1(a)-(d), and meet the same standard applicable to IOUs thereafter.

20. Events have overtaken our consideration of “safeguard” issues in this proceeding. Since the parties filed their comments in late 2010, we have adopted a Code of Conduct and Enforcement Mechanisms Related to Utility Interactions with Community Choice Aggregators, Pursuant to SB 790 (D.12-12-036). That decision broadly safeguards the interests of CCAs vis. IOUs.

Conclusions of Law

1. The energy efficiency portfolios of a CCA should be subject to a cost-effectiveness threshold TRC of 1.0 for the first three years39 that the CCA is a program administrator. Thereafter, the CCA program administrator should be subject to the same cost effectiveness standards as IOU program administrators.

This policy will allow the CCA to establish itself and explore a cost-effective mix of energy efficiency programs, while protecting ratepayers over the long term.

2. Public Utilities Code Section 381(b)40 requires the Commission to “allocate funds collected pursuant to [Section 381(a)] . . . to programs that enhance system reliability and provide in-state benefits as follows: (1) Cost-effective energy

39 Measured from the mailing date of a Commission decision approving a CCA’s first application to become a program administrator under Section 381.1. 40 Hereafter all references to code sections are to the Public Utilities Code unless otherwise noted.

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efficiency and conservation activities.” Section 381(a), in turn, has the Commission “require each electrical corporation” to collect a nonbypassable charge from the electrical corporation’s distribution customers. The charge the electrical corporation collects is nonbypassable “to ensure that funding for the programs described in subdivision (b) . . . are not commingled with other revenues.”

3. We lack statutory authority under Section 381.1 to mandate payment to CCAs of gas public purpose funds for programs that CCAs administer pursuant to Section 381.

4. Section 381.1 subjects CCAs to particular treatment related to their desire to administer energy efficiency funds. Section 381.1(a)–(d) allows CCAs to access energy efficiency funds from, and provide energy efficiency programs to, both their customers and investor-owned utilities’ customers.

5. SB 790 (Stats. 2011, Ch.599, Leno) added subsections (e) and (f) to Section 381.1. These newer subsections allow a CCA to invoke an alternative Commission review process for programs funded by (and offered to) only the CCA’s own customers. SB 790 subordinates a third-party’s application to a CCA’s right to elect to administer energy efficiency programs for its customers.

6. Section 381.1(a) directs the Commission to establish policies for all types of applicants, “including, but not limited to, a local entity that establishes a community choice aggregation program” to “apply to become administrators for cost-effective energy efficiency and conservation programs.”41 The one

41 Section 381.1(a).

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distinction Section 381.1 makes for CCAs versus other applicants appears in Section 381.1(d), which states:

7. In D.05-01-055, for purposes of Section 381.1, we allowed non-IOU entities to take on, at most, a “program implementer” role, stating:

We interpret “administrator” in this context [referencing Section 381.1] to mean an entity implementing an energy efficiency program which is the subject of Section 381, which authorizes the expenditure of certain funds on energy
efficiency programs. This contrasts with the Commission’s energy efficiency policy manual which distinguishes
“administrators” from “implementers.”

8. With respect to CCAs in particular, in D.05-01-055 we stated:

9. We have recognized in D.05-01-055 that “we may ultimately find that CCAs are appropriately independent agencies that should have considerable deference to use Section 381 funds” and have reserved broader issues about CCAs role and discretion for later determination. . . . Nothing in this decision R.09-11-014 ALJ/TOD/sbf
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prevents us from modifying the process for allocating PGC funds to CCAs in the future.

10. We reaffirmed our definition of the term “administrator” for purposes of Section 381.1 on rehearing in D.05-07-046. In that decision, we reiterated that “[Section 381.1] does not grant non-IOUs the authority to hold, manage or control ratepayer funds collected for the energy efficiency programs,” but did nothing to restrict our future options vis. CCAs as far as distributing funds from non-bypassable electric distribution charges to them.

11. It is appropriate for CCAs to be energy efficiency program “administrators” in the same sense that IOUs are “administrators.”

12. We have specific statutory authority in Section 381.1 to establish regulatory processes over CCAs.

13. Public Utilities Code Section 381.1(e) requires the Commission to establish an impartial process to allow a CCA to elect to become administrator of funds collected from the CCA’s electric service customers through a non-bypassable charge authorized by the Commission for cost-effective energy efficiency and conservation programs except those funds collected for broader statewide and regional programs authorized by the Commission.

14. To promote uniformity, and to ensure cost-effectiveness, the same rules for EM&V should apply to all program administrators, CCAs and IOUs alike.

15. Public Utilities Code Sections 381.1(e) and (f) require that the Commission certify a CCA’s energy efficiency plan, approved by the CCA’s governing board, if it contains funding requirements, a program description, a cost-effectiveness analysis, and the duration of the program, and if it: (1) is consistent with the goals of programs established pursuant to Public Utilities Code Sections 381.1 and 399.4; (2) advances the public interest in maximizing cost-effective electricity R.09-11-014 ALJ/TOD/sbf
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savings and related benefits; (3) accommodates the need for broader statewide or regional programs; (4) includes audit and reporting requirements consistent with those established by the Commission pursuant to Public Utilities Code Section 381.1; (5) includes evaluation, measurement, and verification protocols established by the CCA; and (6) includes performance metrics regarding the CCA’s achievement of the objectives listed in paragraphs (1) through (5) of Public Utilities Code Section 381.1(f) and in any previous plan. Public Utilities Code Sections 381.1(e) and (f) do not: prescribe the method of calculating the funding levels; prescribe the method of determining cost-effectiveness; define “ cost-effective energy efficiency electricity savings and related benefits”; define “regional programs; prescribe requirements for the auditing and reporting requirements, for evaluation, measurement, and verification protocols, or for performance metrics. ”

16. It is reasonable and appropriate to make a determination under Public Utilities Code Section 381.1(f)(2) as to whether a plan advances the public interest in maximizing cost-effective electricity savings and related benefits by referring to current Commission rules and policies governing energy efficiency cost-effectiveness.

17. The apparent purpose of the 2011 SB 790’s addition of subdivisions (e) – (g) to Section 381.1 is to give CCAs – and only CCAs – a simpler route to become the administrator of energy efficiency and conservation program funds collected by the electric utilities through non-bypassable charges. SB 790’s addition of the “election” option under subdivisions (e) – (g) to Section 381.1 thus stands in marked contrast with the preexisting, more discretionary opportunity for “any party” to “apply” to be an energy efficiency program administrator under subdivision (a).

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18. Pursuant to SB 790, the application option available to “any” prospective non-IOU third-party energy efficiency administrator is “subject to an aggregator’s [CCA’s] right to elect to become an administrator pursuant to [the election option under] subdivision (f).” (Section 381.1(a).)

19. Section 381.1(e)’s election provisions depend, not on the Public Goods Charge (PGC), but rather on the establishment of “a nonbypassable charge authorized by the commission” for energy efficiency programs.

20. As with plans under Section 381.1(a)-(d), some CCA programs under subsections (e)-(f) may have both electric and gas components. Gas funds should pay for gas efficiency programs, and electric funds should pay for electric efficiency programs. To fund programs under Section 381.1(a)-(d), CCA should only receive non-bypassable charges collected by electrical corporations.

21. CCAs should limit their requests to funding for electric energy efficiency programs.

22. Pursuant to Section 381.1(f), the Commission must certify that a CCA plan meets six criteria, specified in paragraph (f)(1)-(6) of the statute.

23. Section 381.1 encourages the administration of cost-effective energy efficiency and conservation programs by CCAs and other non-IOU administrators. Section 399.4(a) states that prudent energy efficiency investments should continue to be made in order to “produce cost-effective energy savings, reduce customer demand, and contribute to the safe and reliable operation of the electric distribution grid.”

24. Section 381.1(f)(2) requires this Commission to make a finding as to whether a CCA’s plan “advances the public interest in maximizing cost-effective electricity savings and related benefits,” in order to certify (or not) the plan on the basis of whether that condition is met.

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25. Section 381.1(f)(5) requires the CCA to establish its own EM&V protocols.

It is reasonable for CCAs to use the same CPUC EM&V standards that the Commission applies to other energy efficiency programs.

ORDER
IT IS ORDERED that:

1. Community Choice Aggregators that wish to administer conservation and/or energy efficiency programs under Cal. Pub. Util. Code § 381.1(a)-(d) shall file an application with the Commission to do so.

2. Community Choice Aggregators’ applications to administer conservation and/or energy efficiency programs under Cal. Pub. Util. Code § 381.1(a)-(d) must comply with the Commission’s prior decisions and resolutions regarding the content of investor owned utility applications to administer conservation and/or energy efficiency programs under Cal. Pub. Util. Code § 381.1(a)-(d), to the extent that this decision does not supersede them.

3. Community Choice Aggregators’ (CCAs) program portfolios must be cost-effective. A CCA, for three years from the date we approve its first application to administer conservation and/or energy efficiency programs under Cal. Pub. Util.

Code § 381.1(a)-(d), must meet a Total Resource Cost standard of 1.0. Thereafter, CCA’s subsequent portfolios must meet the same cost-effectiveness tests as investor-owned utility program administrators.

4. First-time Community Choice Aggregators (CCAs) applying to administer conservation and/or energy efficiency programs under Cal. Pub. Util. Code § 381.1(a)-(d) may file their applications at any time. Thereafter, CCAs will be R.09-11-014 ALJ/TOD/sbf
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subject to the same timing for applications to the Commission applies to the Investor-owned Utilities.

5. Commission staff shall include Community Choice Aggregators - administered programs under Section 381.1(a)-(d) within the scope of its evaluation, measurement, and verification activities.

6. Community Choice Aggregators (CCAs) that elect to administer conservation and/or energy efficiency programs for just their own customers pursuant to Section 381.1(e) and (f) shall file a proposed plan via an advice letter that conforms to the Tier 3 Advice Letter provisions of General Order 96-B. Such a proposed plan will thereafter be subject to the process applicable to Tier 3 Advice Letters as set out in General Order 96-B. The advice letter is not to be considered either effective or approved until a Commission resolution, or decision if necessary, actually approves the CCA’s plan. (See GO 96-B, General Rule 7.3.1.) CCAs shall serve their advice letters on the service list from the nearest Investor-owned Utilities pending energy efficiency plan application proceedings, or, if no such proceeding is pending, on the service list from the last such proceeding.

7. The Community Choice Aggregators (CCAs’) advice letter shall contain information sufficient for the Commission to certify that a CCA plan meets six criteria, specified in Section 381.1(f)(1)-(6).

8. The Community Choice Aggregators (CCAs) shall conduct financial and management audits of its energy efficiency programs and provide a copy of the audits to the Commission. The financial audit shall consist of a review of the financial statements of the CCA’s energy efficiency operations to determine that the statements are accurate, complete, and consistent with Commission policy and standard accounting practices. The management audit shall assess the R.09-11-014 ALJ/TOD/sbf
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CCA’s management procedures and the effective use of resources in implementing the energy efficiency portfolio.

9. Community Choice Aggregators submitting applications to administer programs pursuant to Section 381.1 shall receive funding only for electricity savings programs.

10. Rulemaking 09-11-014 is closed.

This order is effective today.

Dated January 16, 2014, at San Francisco, California.

MICHAEL R. PEEVEY
President

MICHEL PETER FLORIO
CATHERINE J.K. SANDOVAL
MARK J. FERRON
Commissioners
I dissent.
/s/ CARLA J. PETERMAN
Commissioner

Page 1 of 2 ends

Staff Report – Item 3
To: The Governing Board
From: Steve Lund, Internal Operations Coordinator
Brad Koehn, Director of Finance and Administrative Services Item 3: Cybersecurity Assessment and Information Technology Review Date: 5/25/2023

RECOMMENDATION
Receive a report on the annual Cybersecurity Assessment and Information Technology (IT) Review.

AUDIT & FINANCE COMMITTEE
Staff intends to review the report with the Audit & Finance Committee before the Board meeting. The Committee’s comments and concerns will be conveyed to the Board.

BACKGROUND
Pioneer Community Energy (Pioneer) places high priority on protecting our customer and employee information.

Consequently, this means that Pioneer must maintain efficient and secure Cybersecurity and IT practices. To ensure that Pioneer continues to meet or exceed technology expectations, Pioneer has committed to conduct Annual Cybersecurity and Information Technology assessments. To meet this commitment staff contracted Hutchinson & Bloodgood LLP (HB) to provide an in-depth Cybersecurity Assessment and IT Review.

ANALYSIS & DISCUSSION
In February of 2023, Pioneer hired HB to provide a multi-faceted testing approach including both an automated and manual review of IT systems, policies, and processes. The following approach was used for the audit:

1. Leverage the NIST CSF v1.1 framework in conjunction with CPUC Decision 12-08- 045 and other organizational grades to create the appropriate control assessment.

2. Work with Pioneer to complete the customized assessment, gather appropriate artifacts to evaluate control design and effectiveness, identify any gaps, and provide remediation guidance to satisfy the selected control frameworks.

3. Leverage existing computer resources or provide Pioneer with a customized audit-appliance for running the necessary technical scans and information security tools.

4. Work with Pioneer on identifying areas for immediate remediation and re-testing (such as vulnerabilities that can be patched) and identifying longer-term strategic plans.

5. Focus on the adoption and maturity of controls around SaaS platforms such as M365.

6. Focus on vendor due-diligence and risk management, particularly as it pertains to data exchange.

In order to preserve the integrity of Pioneer’s systems, this report will be a high-level summary of the Cybersecurity Assessment and IT Review. Overall, the Auditors found that Pioneer continues to exceed security controls compared to many other similar organizations. This is mainly due to the time invested to develop, implement, and maintain a secure IT environment. Through the use of a third-party risk ranking service, BitSight, HB found that Pioneer continues to rank between the top 5% and 10% of utility companies, highlighting Pioneer’s success in securing and maintaining the IT environment. Recommendations provided were limited to controls for increased security, with no items of critical concern. HB also found that the increased security of Plf)NEER

COMMUNITY ENERGY
Agenda Item: 3 Agenda Date: 5/25/2023

Page 2 of 2 ends

our new website has increased the success in managing external vulnerabilities. This is shown as a grade point average, which was a B+ last year and currently has increased to an A rating.

STRATEGIC PLAN
Strategic Priority 4: Operational Excellence
Reliability is central to our efforts and a core value of Pioneer. By prioritizing operational excellence, we retain our independence and agility as a provider while supporting our community by offering more options for reliable energy.

FISCAL IMPACT
No Fiscal Impact

ATTACHMENTS
None.

Page 1 of 6 ends

Staff Report – Item 4
To: The Governing Board
From: Devin Reaves, Power Resources Manager
Cianan Mauk, Power Supply Contracts Manager
Item 4: Update on California Market Prices for Pioneer’s Power Procurement Date: 5/25/2023

RECOMMENDATION
Receive an update from Pioneer Community Energy (Pioneer) staff regarding California market prices for Energy, Renewable Energy Certificates (RECs) and Resource Adequacy (RA).

BACKGROUND
Power Procurement accounts for over 90% of Pioneer’s operating costs and has been extremely volatile in the past couple of years. As part of the annual budget planning exercise, staff has assembled this report in order to better explain the reasons for the increased market volatility and prices.

Some big drivers for increased demand in an already scarce California market are legislative and regulatory requirements brought on by California Senate Bills 350 and 100 (requiring minimum renewable energy purchases), and California Public Utilities Commission decisions on resource adequacy. Senate Bill (SB) 350 increased California's renewable electricity procurement goal from 33 % by 2020 to 50 % by 2030 with incremental increases on an annual basis and required that 65% of a load-serving entities’ (LSE) entire portfolio come from renewable resources on a compliance period basis. • SB 350 formally defines three new Compliance Periods:
• Compliance Period 4: 2021-2024, four years
• Compliance Period 5: 2025-2027, three years
• Compliance Period 6: 2028-2030, three years
• SB 100 established a policy increasing renewable electricity procurement goal to 60% by 2030 and requiring renewable energy and zero-carbon resources supply 100 percent of electric retail sales to end-use customers by 2045.
• The California Public Utilities Commission (CPUC) requires all LSEs to procure their load share amount of resource adequacy on an annual basis.
• CPUC Decision 10-11-016 (Nov-2019) assigned an incremental 3,300 MW shared by all LSEs (18.5 MW for Pioneer)
• CPUC D.21-06-035 (June 2021) assigned an incremental 11,500 MW (70 MW for Pioneer) • Decision D.23-02-040 (February 2023) Updating and Adding to D.21-06-035 MTR Procurement Requirements assigned an incremental 4,000 MW (38 MW for Pioneer) Market Fundamentals also reflect a sharp increase in prices across the board due to low supply and high demand conditions for gas, and consequently power. Other drivers such as global supply chain bottleneck issues, Federal actions including photovoltaic import trade measures and the Uyghur Forced Labor Protection Act further exacerbate shortages and higher Prices.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 4 Agenda Date: 5/25/2023

Page 2 of 6 ends

ANALYSIS & DISCUSSION
Pioneer procures three types of energy products, namely California Independent System Operator (CAISO) Energy (Energy), Renewable Energy Certificates (RECs) and Resource Adequacy (RA). The following are updates on the respective markets.

Energy Markets
After jumping over 50% higher starting in 2021, forward Energy Prices remain elevated. Reasons for Forward curve movement:
• Weather forecasts
• Generation/transmission/Natural Gas pipeline outages
• Increased Natural Gas prices
• Fear of Previous Price Spikes
Hydro is expected to play a large role in the supply stack this year, which should provide some relief to the reliance on gas-powered power plants.

The table above shows the year over year change of the forward curve for the time frame of April 23 – June 24, from snapshots taken in May 2022 and April 2023. The forward curve shows a jump in the curve for Q3 and Q4 2023 and Q1 of 2024. This is due to the heat event in September of 2022 and the high gas prices experienced in December 2022 and early Q1 2024.

RPS Market
RPS pricing has become exponentially more expensive this year. In Q3 of 2022 the price for a Portfolio Content Category (PCC) 1 bucket Renewable Energy Certificate (REC) was approximately $20/MWh whereas now we are seeing prices anywhere from $40/MWh-$50/MWh.

The reasoning is due to the scarcity (project delays, etc.) of the RPS market and demand from LSEs to meet their obligations. Prices should start showing relief when delays from projects start to be resolved and come online in the 2024–2026-time frame.

NP-15 Shaped Forward Prices
$160 100%
$140
80%
$120
60%
$100
$80 40%
$60
20%
$40
0%
$20
$- -20%
- May-22 - Ap r-23 --% Change
Agenda Item: 4 Agenda Date: 5/25/2023

Page 3 of 6 ends

RA Market
Resource Adequacy (RA) has become the biggest problem facing California. Prices have risen exponentially over the last few years, and the Cal23 strip is over double the price of Cal22.

There are several factors for the rise in RA prices:
• Weather conditions have become more extreme, which has increased load and reduced generation output
• Hydro resource availability has decreased due to drought conditions (2023 is showing a very strong water year, which will help)
• New resources have been delayed for numerous reasons
• The West region has been constrained leading to lower imports • CPUC has greatly decreased the Net Qualifying Capacity (NQC) factor for solar and wind • CPUC has increased the planning margins for IOUs which has increased their RA requirements • Restrictive import RA program
0 10
20 30
40 50
2019 2020 2021 2022 2023
$/MWh
Year
PCC1 Prices, $/MWh
0 2
4 6
8 10
12 14
16 18
20 2019 2020 2021 2022 2023
$/kW-Mo
Year
Yearly RA Prices, $/kW-Mo
Agenda Item: 4 Agenda Date: 5/25/2023

Page 4 of 6 ends

2022 vs 2023 Market Comparison
The table below shows that it would cost Pioneer approximately $450 million more in 2023 than 2022 if Pioneer were to procure all its requirements based on 2022 market prices vs 2023 market prices.

RPS and RA prices are the biggest drivers of higher costs currently, but the energy price used in the table is a mix of year to date actual prices and a forward curve for the balance of the year. This means that if there is a heat event like in 2022, the energy price will go up, meaning even higher procurement costs for Pioneer. 0 10
20 30
40 50
60 70
0 2 4 6 8 10 12
$/kW-Mo
Month
Monthly RA Prices, $/kW-Mo
2019
2020
2021
2022
2023
r
2022 Market Price s 2023 Market Prices
Energy Price, $/MWh $ 88.66 Energy Price, $/MWh $ 75.76 PCC1 Price, $/MWh $ 22.00 PCC1 Price, $/MWh $ 45.00
RA Price, $/kW-Mo $ 9.29 RA Price, $/kW-Mo $ 18.40
2022 Energy Requirement, MWh 1,733,893 2022 Energy Requirement, MWh 1,733,893 2022 RPS Requ irement, MWh 656,749 2022 RPS Requ irement, MWh 656,749 2022 RA Requirement, MW 4,258 2022 RA Requirement, MW 4,258 2022 Energy Cost $ 153,726,943 2023 Energy Cost $ 131,359,725 2022 RPS Cost $ 14,448,478 2023 RPS Cost $ 29,553,705
2022 RA Cost $ 474,740,240 2023 RA Cost $ 939,900,520
Total $ 642,915,661 Total $ 1,100,813,950
Agenda Item: 4 Agenda Date: 5/25/2023

Page 5 of 6 ends

Other Drivers - Global Supply Chain Problems
In 2022, the US Department of Energy analyzed global supply chain vulnerabilities for the United States energy industry based on domestic manufacturing capacity for energy generator components. The statistics in the following charts show the unique vulnerabilities that US projects suffer from supply chain interruptions since most of the parts are manufactured overseas and are subject to supply chain issues and other trade measures. 30 5 - 0
2018 2019
3S
30 25
• 20
3 ,;, 15
0 5
0 $5,000
~$4,000
_g$3,000
E _$2,000
Q)
::,
~$1,000
$0
Solar
■ U.S. Manufa tu red • Imported
2016 2019 2020

3.0 ROW 2.5
N.America I 2.0
Rest of Asia "' .; Ch na u 1.5 "C
., . Korea 1::
0 Thailand
i 1.0
Vietnam 0.5
■ Malaysia

0.0 2020 2018 2019
u_s_ imports of wind-specific equipment
20 6 2017 20 8 20 9 2020
Chine
• Brazil
Spain
Canada
India Mexim ■ Denmark
• Indonesia • Itel~
Germany South ~ree • Vetnem
others
ROW
■ Philippines
■ India
■ Japan
■ Thailand
■ Taiwan
Vietnam
■ China
■ Malaysia
■ S. Korea
2020
Agenda Item: 4 Agenda Date: 5/25/2023

Page 6 of 6 ends

Battery/Lithium Ion
Other Drivers – Federal Trade and Legislative Actions
Anti-Circumvention Trade Measures: In 2022, a complaint was made to the Department of Commerce (DOC) alleging that solar components imported from companies based in several southeast Asian countries in fact originated from Peoples Republic of China (PRC). This would mean that those importers were circumventing tariffs placed on the PRC.
• If the importer was found to have circumvented the tariffs, they can be subject to a penalty of 250% of the declared value of the imported item which would be retroactively applied. • As a result of this complaint, the DOC initiated an investigation to determine whether the allegations in the complaint are true or not.
• This caused a dramatic slowdown in solar imports as entities were not willing to risk the possibility of being subject to high retroactively applied punitive tariffs. • In order to remedy the problem, the Biden administration waived any punitive tariffs on this for two years.

Uyghur Forced Labor Prevention Act: On December 23, 2021, Congress passed the Uyghur Forced Labor Protection Act (UFLPA). This law requires the Department of Homeland Security and US Customs and Border Patrol to enforce the 1930 Smoot-Hawley Tariff Act (which bans the importing of goods made with forced labor) specifically on goods originating from the area of the PRC where Uyghur’s are subject to forced labor.

These Federal trade and legislative actions resulted in price increases and project delays for some of our power purchase agreements. Although it seems the worst is over, it remains to be seen whether these projects will be delivered on time for compliance purposes.

FISCAL IMPACT
None.

Current Under Development
U.S. China U.S. China
Cathode 0.70% 63% 0% 84%
Anode 0.60% 84% 0% 91%
materials
Separator 3% 66% 0% 76%
Electrolyte 7% 69% 2% 75%

Page 1 of 8 ends

Staff Report – Item 5
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 5: Proposed Fiscal Year 2023-24 Budget
Date: 5/25/2023

RECOMMENDATION
Receive a presentation on the Proposed Fiscal Year 2023-24 Budget and provide direction as appropriate. The Recommended Budget will be brought to the Board for approval at the June 15, 2023 Board meeting.

AUDIT & FINANCE COMMITTEE REVIEW
The Audit & Finance Committee members received a presentation of the Proposed FY 2023-24 Budget from staff at the May 22, 2023 meeting. The members provided feedback on the presentation, and that feedback, along with Board feedback today, will be incorporated in the recommended budget that will be presented to the Board in June.

EMPLOYEE BENEFIT AND WELFARE AD HOC COMMITTEE REVIEW
The Committee met May 1st and reviewed the employee benefit package. The Committee will continue their review at a second meeting and any recommendations will be brought to the Board for consideration.

BACKGROUND
The Proposed Budget is a first view of the budget to the Governing Board (“Board”) with staff incorporating feedback and recommendations from this review into the FY 2023-24 Recommended Budget for adoption at the June Board meeting. The FY 2023-24 Budget is effective July 1, 2023.

ANALYSIS & DISCUSSION
The Proposed FY 2023-24 Budget is balanced and presents Pioneer Community Energy (“Pioneer”) in stable financial condition. The Proposed Budget projects total revenues of $228.67 million and total expenses at $204.43 million resulting in a projected contribution to reserves of $24.2 million. The table below summarizes the proposed budget at a high-level:

FY 2022-23 FY 2023-24 Variance
$ in Millions Midyear
Budget
Proposed
Budget $ %
Revenues $213.43 $228.67 $15.24 7.1%
Power Supply $177.98 $184.19 $6.20 3.5%
Contribution Margin $35.44 $44.48 $9.03 25.5%
Operating Expenses $11.03 $16.49 $5.45 49.4%
Operating Margin $24.41 $27.99 $3.58 14.7%
Non-Operating Net Expenses $3.66 $3.76 $0.10 2.8%
Contribution To Reserves $20.75 $24.23 $3.48 16.8%
Plf)NEER

COMMUNITY ENERGY
Agenda Item: 5 Agenda Date: 5/25/2023

Page 2 of 8 ends

Significant drivers impacting both revenues and expenses include:

1. The Proposed Budget includes division funding of $4 million with $3.7 million for the initiation of Programs that would fund refrigerator replacements, weatherization, HVAC tune-ups, LED lighting, EV chargers and partnership program with area High Schools.

2. Full year of increased outreach/marketing effort with the goal to increase the participation rate.

3. Increased Congestion Revenue Rights (“CRR”) expenses related to monetizing the CRRs.

4. Addition of one position - Senior Manager, Quantitative Analysis & Modeling.

5. The Proposed Budget incorporates six months of revenue and expense increases due to the expansion to Grass Valley and Nevada City.

6. Revenues reflect the rate change approved in December 2022. The budget assumes no changes to rates.

Revenues
Pioneer receives most of its revenues through rates with a small contribution from the CRR program through the California Independent System Operator (“CAISO”). CRRs are financial instruments that are issued to Pioneer from CAISO that are intended to offset/manage variability in congestion costs. CRRs are acquired primarily for offsetting integrated forward market congestion costs that occur in the day ahead market and are charged to Pioneer by CAISO. Interest earnings are the third revenue generator, although very small compared to other revenues.

Since March 2022, the Federal Reserve has increased the federal funds rate in multiple increments. This change will dramatically increase the earnings that Pioneer generates from its ‘cash on hand’ and $750,000 is projected.

Pioneer does not receive any subsidies from our member agencies. The chart below illustrates our cash inflow:

Revenue: $228. 7 million
Agenda Item: 5 Agenda Date: 5/25/2023

Page 3 of 8 ends

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

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

Notable Operating Expense Adjustments
Programs
Proposed in the Budget is the initiation of programs in the upcoming fiscal year. The overall program division is allocated $4 million with $3.7 million earmarked for program efforts such as refrigerator replacement, weatherization, electrical vehicle chargers, energy efficiencies for residential and small business, and partnerships with local high schools.

Congestion Revenue Rights Expense
Pioneer has a broker that assists Pioneer with monetizing CRR value and the broker costs are estimated to increase $400 thousand. The monetized value of the CRRs is expected to be $5 million.

Personnel
Fiscal Year 2022-23 authorized 17 full-time positions and one part-time position, and the proposed fiscal year 2023-24 Budget proposes an increase of one full-time position to a total of 18 full-time positions and one part-time position. This staffing increase has a salary and benefit cost of $258 thousand. This position, Senior Manager, Quantitative Analysis and Modeling’s responsibilities would include data analysis, modeling for energy RFP valuations, production cost modeling, integrated resource planning analytics and Monte Carlo simulations.

Expenses: $204.4 million
Agenda Item: 5 Agenda Date: 5/25/2023

Page 4 of 8 ends

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

Ctief Optrating
Officer
Sr. Manager, Q Llilnl
Analysis
& Modeling
PoVEr Resources
Manager
Power S141ply
Cortracts Manager
Board Clerk/
Executive Assistant
► 18 Full-time Positions
, 1 Added Position
► 1 Part-time Position
C0rTTIU1jf¥ Outreach
Manager
lnltrn (Part-time)
Director fl Finance &
Actninislration
Director of Public
Aff iirs, Milrlreti ng &
Programs
Senior Financial
Analyst.

Financial &
Amninislrative
Analyst I
Key Accolflts
Milmger/ Program
Milmger
Agenda Item: 5 Agenda Date: 5/25/2023

Page 5 of 8 ends

Sr Manager,
Q u;nt .~nalysi s
& Mcdehng
Power
Resources
ManagO"
PoUIEr Supply
Coruacts
Manager
Scheduing
Coordinator
Power
Procurerrent
Consulting
CRRBroler state Lobbyist
Board Clerk/
Executive
Assistart
CClffTIUmy
Ow-each
Manager
Int.em
(Part-tirre)
Director of
Finance&
Adrrinislntion
Human
Resources
(Employee
Relations)
Hurnm
Resources
(Recruitmeft)
IT Auditor
Controller
Serior
Financial
Analysl
Financial &
Alhinislralive
Analyst I
Financial
Advisor
lrl"armrtion
Technology
Senices
Custodial
Senices
► 18 Full-time Positi ons
► 1 Added Posi ion
► 1 Pa rt-time Positi on
► Key Cm sultant Serv·ces
Key Accomts
Manager
Key Accounts
Manager/
Program M amger
Cuslarner Care
Manager
Marketing
Senices
Cuslarner Call
Center
Agenda Item: 5 Agenda Date: 5/25/2023

Page 6 of 8 ends

Increased Outreach/Marketing Efforts
Mid-FY 2022-23, Pioneer increased outreach and marketing efforts to create visibility, build trust and re-engage potential customers who had chosen to opt out of Pioneer services and instead receive generation from PG&E.

This effort was largely funded by internal transfers from budget savings realized from delays in staff hiring. This budget proposes that this 6-month heightened effort would continue for the full fiscal year.

Division Comparisons
The budget comparison between Fiscal Year 2022-23 and Fiscal Year 2023-24 by Division and by Aggregate for Compensation, Consultant Services and Operating Expenses has significant swings in both the positive and negative directions. The Notable Operating Expense Adjustments that are discussed above are one of the drivers of those swings but there are other contributing factors as well.

The Fiscal Year 2022-23 budget had significant transfers between divisions and between functions (Compensation, Consultant Services and Operating Expenses). While Fiscal Year 2022-23 increased the authorized positions by 4 to a total of 17, Pioneer experienced challenges in finding qualified candidates in several recruitments. Pioneer shifted efforts to complete 6 separate and distinct recruitment efforts and will close the current fiscal year with one vacancy. Vacant positions throughout the year resulted in budget savings that were transferred to fund the needs in other functions and other divisions. For example, after an unsuccessful recruitment for the Senior Manager, Quantitative Analysis and Modeling (Power Division), the Board approved the Community Outreach Manager (Administration Division) and funding was transferred between the two Divisions to accommodate the shifted need. Another priority change was related to the increased outreach and marketing efforts to re-engage potential customers. This included a reallocation of staff time from other divisions to Customer Care and increased Consultant Services and Operating Expenses in the Marketing Division, funded by transfers from other functions and divisions. *Data
gathered Feb
2023
Pioneer
(Current)
Pioneer
(Proposed) VCE EBCE PCE SVCE MCE SCP RCEA
FTEs 17 18 8 68 37 49 89 41 35
TWh 1.76 1.76 0.77 6.20 3.28 3.60 5.50 2.10 0.66
Ratio 9.7 10.2 10.4 11.0 11.3 13.6 16.2 19.5 53.0
# of Full-Time Employees per TWh of Load
60 50
40 30
20 10
0 Pioneer Pioneer VCE EBCE PCE SVCE MCE SCP RCEA
(Current) (Proposed)
Agenda Item: 5 Agenda Date: 5/25/2023

Page 7 of 8 ends

Financing Highlights
In May 2021, Pioneer entered a 15-year $10.5 million term loan with Umpqua Bank that was used to pay in full Pioneer’s loan obligation with Placer County that had initially provided necessary start-up funding. The annual debt service is $950 thousand, and the terms of the loan allow Pioneer to pay up to $2.1 million annually in extra principal payments without being subject to a prepayment penalty. A $2.1 million extra principal payment was made January 2023 that is estimated to save over $1.16 million in interest costs and reduce the term by nearly 42 months. A similar payment is proposed in FY 23-24 that is estimated to save an additional $680 thousand in interest and reduce the term by an additional 3 years.

Pioneer has established with Umpqua Bank a Line of Credit for the purpose of issuing Letters of Credit to energy suppliers when collateral is required. The Letters of Credit allow Pioneer to avoid using cash as collateral thereby improving Pioneer’s liquidity position. The budget has programmed funding of $350 thousand for this purpose.

The California Public Utility Commission is contemplating a change to the Financial Security Requirement that is posted by CCAs, such as Pioneer. Although this process is preliminary, the budget includes funding of $360 thousand to meet this potential increase.

On October 20, 2022, the Board authorized Pioneer to enter into a 30-Year Energy Prepayment Transaction (“Prepay”), which enables tax-exempt entities like Pioneer to bundle certain long-term power agreements into a long-term financial transaction for a discount on the associated power costs. Pioneer’s Prepay discount is approximately 12% with an estimated average savings of $2.5 million each year. Since the different power agreements under the Prepay will be coming online gradually over the next couple of Fiscal Years, the estimated Prepay-related savings for FY 2023-24 are only $491 thousand but will increase in the fiscal year to follow.

Reserves
During Fall 2021, the Board approved a revised Reserve Policy that established a minimum target of 160 days of cash liquidity and a timeline to achieve that minimum target in 3 to 5 years. Staff estimates (assuming existing rates, power expenses, and avoidance of extreme weather events) that Pioneer should reach between 127 to 146 days of liquidity by June 2024 and achieve the minimum Reserve target of 160 days during Fiscal Year 2024-25.

The following chart illustrates Pioneer’s expectation for achieving the target:

RESERVES
195 Days
$100,000
160 Days (Target) 140 Days
$80,000 146 Days
Extreme
~ Weathe~
C: $60,000
105 Days Extreme Event .,,
1/) Weather Avoided ::i
0 Event ~
·==
Avoided
<'¼ $40,000
87 Days
$20,000
$0
FY22 FY23 FY24 FY25
Agenda Item: 5 Agenda Date: 5/25/2023

Page 8 of 8 ends

mPOWER
mPOWER was closed to new applications on August 31, 2021, and funding of the final applications at this point has not been finalized. Staff is working with the County to appropriately program a Fiscal Year 23-24 Budget for mPOWER. Ongoing assessment revenue, bond servicing costs and administration costs will continue until the last Bond is paid in full. The mPower budget will be included in the Recommended Budget to the Board in June.

FISCAL IMPACT
The Proposed FY 2023-24 Budget includes total revenues of $228.7 million and total expenses of $204.4 million resulting in a projected contribution to reserves of $24.2 million.

ATTACHMENTS

1. Draft Proposed Fiscal Year 2023-24 Budget Summary
Exhibit A
$ in Thousands Adopted Mid-Year Proposed
Revenues FY 2022-23 FY 2023-24 $ %
Energy Sales $210,160,000 $225,938,000 $15,778,000 7.5% Green100 Sales $30,000 $30,000 $0 0.0%
Congestion Revenue Rights $6,000,000 $5,000,000 ($1,000,000) -16.7% Less Uncollectable Accounts ($2,837,000) ($3,050,568) ($213,568) 7.5% Total Energy Revenues $213,353,000 $227,917,432 $14,564,432 6.8% Investment gains (losses) $75,000 $750,000 $675,000 900.0% Total Revenues $213,428,000 $228,667,432 $15,239,432 7.1% Energy Expenses
Power Supply $177,984,000 $184,189,000 $6,205,000 3.5%
Operating Margin $35,444,000 $44,478,432 $9,034,432 25.5% OPERATING EXPENSES Adopted Mid-Year Proposed
Administration FY 2022-23 FY 2023-24
Compensation $626,252 $894,843 $268,591 42.9%
Consultant Services $546,325 $381,325 ($165,000) -30.2% Operating Expenses $541,225 $791,126 $249,901 46.2%
Administration Total $1,713,802 $2,067,294 $353,492 20.6% Finance
Compensation $760,530 $855,726 $95,196 12.5%
Consultant Services $553,350 $591,618 $38,268 6.9%
Operating Expenses $278,983 $256,103 ($22,880) -8.2%
Finance Total $1,592,863 $1,703,447 $110,584 6.9%
Power Procurement
Compensation $617,886 $923,903 $306,017 49.5%
Consultant Services $1,485,426 $1,880,341 $394,915 26.6% Operating Expenses $35,450 $43,000 $7,550 21.3%
Power Procurement Total $2,138,762 $2,847,244 $708,482 33.1% Customer Care
Compensation $441,957 $745,694 $303,737 68.7%
Consultant Services $2,935,012 $2,921,370 ($13,642) -0.5% Operating Expenses $10,863 $18,250 $7,387 68.0%
Account Care Total $3,387,832 $3,685,314 $297,482 8.8%
Marketing
Compensation $154,388 $199,589 $45,201 29.3%
Consultant Services $556,240 $380,500 ($175,740) -31.6% Operating Expenses $408,050 $686,600 $278,550 68.3%
Marketing Total $1,118,678 $1,266,689 $148,011 13.2%
Legislative & Regulatory
Compensation $496,649 $593,827 $97,178 19.6%
Consultant Services $353,808 $317,275 ($36,533) -10.3%
Operating Expenses $5,250 $6,300 $1,050 20.0%
Legislative & Regulatory Total $855,707 $917,402 $61,695 7.2% Programs
Compensation $122,320 $164,724 $42,404 34.7%
Consultant Services $97,000 $142,000 $45,000 46.4%
Operating Expenses $6,500 $3,693,276 $3,686,776 56719.6% Programs Total $225,820 $4,000,000 $3,774,180 1671.3%
Aggregation of all Divisions
Compensation $3,219,982 $4,378,306 $1,158,324 36.0%
Consultant Services $6,527,161 $6,614,429 $87,268 1.3%
Operating Expenses $1,286,321 $5,494,655 $4,208,334 327.2% Total Operating Expenses $11,033,464 $16,487,390 $5,453,926 49.4% Debt Service
Term Loan Debt Services $950,000 $950,000 $0 0.0%
Addiitonal Term Loan Principal $2,100,000 $2,100,000 $0 0.0% Line/Letter of Credit Fees $250,000 $350,000 $100,000 40.0% Financial Security Requirement $356,000 $360,000 $4,000 1.1% Debt Service Total $3,656,000 $3,760,000 $104,000 2.8%
Total Expenses $192,673,464 $204,436,390 $11,762,926 6.1% Contribution to/(from) Reserves $20,754,536 $24,231,042 $3,476,506 16.8%

PIONEER COMMUNITY ENERGY (CCA)
Proposed Budget for FY 2023-2024
Variance

Page 1 of 2 ends

Staff Report – Item IV-B
To: The Governing Board
From: Donald Eckert, Executive Director
Item IV-B: Executive Director Report
Date: 5/25/2023

PERSONNEL
Pioneer has closed the recruitment for the Community Outreach Manager. An offer was accepted with a start date of June 19th. Our newest employee will be introduced to the Board at the July meeting.

With this hire, Pioneer currently has filled sixteen of seventeen approved positions. The remaining open position is Programs Manager. The recruitment will start once direction is given by the Board to implement Programs through the budget process.

EXECUTIVE DIRECTOR AGREEMENTS EXECUTED
The following agreements have been executed by the Executive Director, consistent with the authority delegated by the Board:

1. Law Office of David Peffer, Regulatory Assistance, not-to-exceed $14,000, term is to completion of services.

2. Ability Social Marketing, Marketing Consulting Services, not-to-exceed $6,300, term is to completion of services.

3. Ultimate Building Maintenance, Janitorial Services, not-to-exceed $50,000, term is to April 24, 2024.

4. Granicus, Video Software, not-to-exceed $14,755, term is to February 26, 2024.

EXECUTIVE DIRECTOR POWER SUPPLY CONTRACTS EXECUTED
There are no transactions to report.

BOARD WORKSHOP
A reminder to the Board that Pioneer will be hosting a board orientation workshop on June 1st at 3:00pm. We expect the workshop to be about an hour. All Board Members are welcome, but the workshop will focus on providing our new Members with an introduction to key terms and concepts to assist in their decision making.

UPDATE ON SENATE BILL (“SB”) 488 AND ASSEMBLY BILL (“AB”) 625 SB 488 (Alvarado-Gil)- This is the bill that would expand the BioRAM program to include CCAs. The bill was heard in the Senate Energy, Utilities and Communications Committee on April 24. We had opposition from PG&E and Edison. We met with all the members of the committee more than once. Pioneer was the lead testimony and we arranged to have a representative from Mt Lassen Power from Senator Dahle’s district testify as well. Ultimately, the Chair recommended a “no” vote on the bill based upon PG&E’s opposition to their ratepayers subsidizing CCA’s procurement choices. The bill failed 7-2. We needed 10 to get out of committee. The Vice-Chair and co-author of our bill, Senator Dahle was absent from committee that day, but we received support from Senators: Eggman, Caballero, Dodd, Becker, Wilk, Grove, and Seyarto. Senator Alvarado-Gil was fantastic in committee fighting for her district and the bill.

AB 625 (Aguiar-Curry)- This is the bill that would extend the sunset date for the BioMAT program. The Assembly Utilities and Energy Committee amended the bill to state that the program should be extended until implementation of AB 843 by the CPUC and CCAs have adequate time to participate in the program. The bill is Plf)NEER

COMMUNITY ENERGY
Agenda Item: IV-B Agenda Date: 5/25/2023

Page 2 of 2 ends

now in the Assembly Appropriations Committee Suspense File. The outcome of this committee won’t be known until May 18.

For more detail on these bills and other legislative and regulatory activities, please see the Monthly Legislative and Regulatory Report (Attachment 2).

WEBSITE UPDATE – CHATBOT
Pioneer has a new feature on our website called Chatbot. It launched April 17th. Chatbot provides answers to frequently asked questions and can direct customers to specific web pages based on the topic. However, live support is still available.

To date, Chatbot has been well received. Since its launch, over 3,400 visitors to our website have used Chatbot 4,800 instances. Chatbot allows customers speedy answers to their questions while reducing phone time for staff to allow more interaction in the community.

ANNUAL NET ENERGY METERING (“NEM”) CASHOUTS
The staff is processing payments for NEM customers for their net generation as part of our annual true-up process. This year is a new record for Pioneer with the expected payments of $1.1 million to 5,600 customers.

As a reminder to the Board, Pioneer compensates NEM customers with a ½ cent premium over Pacific Gas & Electric. A press release is forthcoming.

PUBLIC OUTREACH – UPCOMING EVENTS
Pioneer has been very active in the community but of particular note, Pioneer will have a booth at the Home Show in Auburn from May 19-21 and the El Dorado County Fair from June 15-18. For more information on our outreach, please see the Monthly Public Outreach Report (Attachment 3).

INCOME-BASED UTILITY RATE MAKING
Many Board Members have reached out to staff on the possible shift from cost-of-service rate setting to an income-based approach where a fixed fee on the utility bill is applied based on household income. The deadline for the California Public Utilities Commission to decide is July 2024. This is a significant issue and complicated.

Staff will keep the Board apprised as more information becomes available.

PRESENTATIONS and RELEVANT MEETING ATTENDED by the EXECUTIVE DIRECTOR

1. Participated in CalCCA Weekly/Monthly Executive Committee/Board meetings.

2. Participated in Biomass Project Development meeting with Wisewood Energy and Western Placer Waste Management Authority.

3. Presented the SB1383 Compliance Alternative to Loomis Town Council and Nevada City Council.

ATTACHMENTS

1. Agenda Planning Document

2. Monthly Legislative and Regulatory Report

3. Monthly Public Outreach Report
Agenda Planning Document – Pioneer Community Energy Updated 5/19/2023 C:\Users\TeresaWillock\Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates

BOARD OF

DIRECTORS
MAY 25, 2023
3:00 PM
(Post Agenda: May 19)
Special Meeting
Board Workshop
JUNE 1, 2023
3:00 PM
Post Notice of Special Meeting
Post Agenda no less than 24 hours prior
JUNE 15, 2023
3:00 PM
(Post Agenda: June 9)

IN THE FUTURE
(SEPT) Special Meeting- CAISO facility tour
General Function I Agenda Review Agenda Review
Consent
1a
Minutes for Approval
APR 20, 2023
Minutes for Approval
MAY 25 and JUNE 1, 2023
1b Receive Draft Financials: MAR 2023
(Koehn)
Receive Draft Financials: APR 2023
(Koehn)
1c CEC Midas Reporting Compliance
extension (Kang)
Contract renewals (Koehn)
1d Legislative Platform update (Kang) JRM information (Eckert) 1e Contract Renewal – Maher
Accountancy (Koehn)
Regular
2 Presentation on Public Purpose
Funding (Discussion-Eckert)
Frontier Energy-virtual presentation
JSR contract (Action-Eckert) Customer Participation (Riffey) 3 Annual Cybersecurity & IT Audit
(Discussion-Koehn)
H&B-virtual presentation
Update on Prepay Transaction
(Discussion-Eckert)
Contract Renewal -Calpine Data
Management
4 Update on Energy Procurement
Markets (Discussion-Kang)
RES approving Recommended FY 23-24
Budget (Action-Koehn)
RES-BCT rate
5 Overview of proposed FY 23-24
Budget (Discussion-Koehn)
RES approving EE Health & Welfare
Benefits (Action-Koehn)
Green75 – new hybrid renewable rate
(Action-Eckert/Kang)
6 Outreach Plans for Nevada City/Grass
Valley (Discussion-Eckert)
Outreach Efforts Summary (Discussion-Eckert)
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;
updates to SB 488 and AB 625;
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
I
Agenda Planning Document – Pioneer Community Energy Updated 5/19/2023 C:\Users\TeresaWillock\Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates

AUDIT/FINANCE COMMITTEE TBD DATE IN THE FUTURE
Greg Janda, Chair
Holly Andreatta
Wes Heathcock
John Hidahl

ENERGY PROCUREMENT REVIEW

AD HOC COMMITTEE TBD DATE IN THE FUTURE
John Hidahl, Chair
Greg Janda, Vice Chair
Amanda Cortez
Alice Dowdin Calvillo

EXPANSION

AD HOC COMMITTEE TBD DATE IN THE FUTURE
Jim Holmes, Chair
Alice Dowdin Calvillo, Vice Chair
David Yarbrough
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
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update Pioneer Community Energy Legislative and Regulatory Update May 25, 2023
Legislative Affairs
California Legislature and Capitol Update:

The California State Legislature reconvened from Spring Recess on April 10, 2023. Upon its return, Policy Committee hearings ramped-up through April, prior to the April 28, 2023 deadline to hear fiscal bills in the House of Origin; the deadline to hear non-fiscal bills in their House was May 5, 2023. Bills that did not get out of their respective Houses by these deadlines either died or became two-year bills. Bills with a fiscal impact were referred to Appropriations Committees in either House and must be heard by May 19, 2023 and reported to the floor of their respective Houses. The Senate and Assembly Suspense Hearings were held on May 18. This is the fiscal hearing that determines if bills are held, passed out with amendments, or pass without amendments.

Due to the unusually high volume of bill measures introduced this year, April was a very busy month at the Capitol. Thus far in the 2023 – 2024 Legislative Session there are several legislative areas of focus of interest to Pioneer: bills seeking to address electrical interconnection delays occurring throughout the State, bills seeking to expand the use of biomass through existing programs, a revived 2018 effort to regionalize the California/California Independent System Operator (CAISO) grid across the broader Western region, several Brown Act bills relating to meeting restrictions post-COVID-19 pandemic; and Governor Newsom’s Budget Change Proposal (BCP) which includes an Energy Reliability Proposal focusing on three important areas to Pioneer and CCAs: central procurement through the Department of Water Resources (DWR) or another identified entity, capacity payment penalties for Resource Adequacy (RA) deficiencies, and expanded Integrated Resource Planning (IRP) enforcement authority by the California Public Utilities Commission (CPUC). Pioneer staff and CalCCA staff are monitoring bills and engaging in these spaces. As bills are amended and the 2023-2024 Legislative Session evolves, the Board will be apprised of potential impacts to Pioneer and CCAs, as appropriate.

Related to the Governor’s Budget Change and Energy Reliability Proposals, an Assembly Budget Subcommittee #3 Hearing was held on May 10, 2023. The hearing focused on the Budget Trailer Bill, AB 1373 (E. Garcia), which is the policy vehicle for Newsom’s Energy Reliability Proposal. During the hearing Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update Legislators posed questions to representatives from the CPUC and DWR, and representatives from CalCCA and the California Municipal Utilities Association (CMUA) provided testimony. The hearing, legislators’ questions, and CalCCA and CMUA’s testimony revolved around how to ensure California can meet its long-term clean and reliable energy goals. Also discussed was whether there is a need for a Central Procurement Entity (CPE), via DWR or another entity, to reach those goals, and the impact the CPE could have on ratepayers, raising costs, and disruptions to the energy market, tightening capacity and the availability of resources for Load Serving Entities (LSEs).

Additionally, concerns were raised with providing the CPUC and the CPE with such broad authority over procurement that could erode LSEs’ procurement autonomy and the local governance autonomy of CCAs. Issues were also raised about what types of resources would be procured by the CPE, which is not clear in the bill language and would allow the CPE to procure whatever resources it determines necessary. During the hearing Legislators spoke out on many of the core concerns raised by CalCCA. The outcome of the trailer bill is still in flux, and it may be amended to address some of these concerns.

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’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 require the CPUC to continue the BioMAT program until implementation of the provisions authorizing Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update CCAs to participate in the program has been resolved and adequate time is given to CCAs to participate in the program.
• This bill was heard in the Assembly Utilities and Energy Committee and passed by a vote of 13-0 and the Assembly Natural Resources Committee where the bill passed by a vote of 10-0.
• Pioneer testified in support of the bill in both committees. • The bill is currently on the Assembly Appropriations Suspense File. • 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.
• This bill failed passage in the Senate Energy, Utilities, and Communications Committee by a vote of 7-2-9 and is dead. 2023 Pioneer Priority Bills to Support or Oppose Unless Amended:
• AB 50 (Wood): Support
• Establishes interim timelines for large electrical corporations to provide customer energization following a written commitment to service by the utility. Requires that a failure to energize customers by the date provided on a commitment to serve will entitle a customer to a utility bill credit. Requires the CPUC to determine criteria for timely service by 2025 that may replace or revise interim timelines.
• AB 538 (Holden): Support
• Delegates to the CEC the ability to authorize the transformation of the CAISO into a multistate regional transmission system if specified requirements are satisfied. Prohibits a California electrical transmission facility owner, a retail seller of electricity, or a local publicly owned electric utility from joining a multistate regional transmission system organization, if specified requirements are not met.
• AB 557 (Hart): Support
• Eliminates the sunset date on provisions of law allowing local agencies to use teleconferencing without complying with specified Brown Act requirements during a proclaimed state of emergency.

Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update • AB 643 (Berman): Support
• Requires the CPUC to commence the consideration of adopting mechanisms for distributed renewable generation interconnections to enforce timelines, reduce administrative burden, and provide transparency and certainty to customers. Requires the CPUC to create process improvements to, and potential timelines for, Electric Rule 21 to address certain types of delays.
• AB 704 (J. Patterson): Support
• This bill, until January 1, 2027, requires residential construction intended to repair, restore, or replace a residential building damaged or destroyed because of a disaster in an area in which a state of emergency has been proclaimed by the Governor to comply only with requirements regarding photovoltaic systems that were in effect at the time the damaged or destroyed residential building was originally constructed.
• AB 998 (Connolly): Support
• Requires the California Energy Commission (CEC) to issue a report on the utility-scale biomass combustion facilities still in operation as of January 1, 2024.
• Requires the report to include various assessments of biomass combustion facilities that considers impacts on disadvantaged, rural forested, and agricultural communities, impacts on the ability to maintain existing capacity for managing forest or other excess biomass, the cost of upgrading facilities and financing opportunities, and job creation or job loss that may result from the strategy. • AB 1373 (E. Garcia): Oppose Unless Amended
• Provides significant policy changes to electricity market structure and regulations proposed by the Newsom Administration’s 2023 budget energy trailer bill, including the creation of a central procurement entity at the Department of Water Resources; capacity payments for load-serving entities and local publicly owned electric utilities that are deficient in their reliability obligations and DWR’s Strategic Reliability Reserve was used to meet their reliability needs; and CPUC enforcement and subsequent penalty authority of load serving entities’ integrated resource plans.
• SB 83 (Wiener): Support
• Requires the CPUC to establish maximum energization time periods by when an electrical corporation would be required to energize a development project. Requires electrical corporations to energize development projects within the maximum time period established by Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update the CPUC. Requires electrical corporations to compensate development projects for failing to meet the deadline.
• SB 410 (Becker): Support
• Creates the Powering Up Californians Act and requires the CPUC to establish a working group to propose processes that would improve the ability of utilities to be informed well in advance of needed increases in distribution system capacity for future housing developments, building electrification, electric vehicle charging infrastructure, and other activities that require increased distribution system capacity.
• Requires the California Public Utilities Commission (CPUC) to establish reasonable average and maximum target interconnection time periods and certain reporting requirements so that utility performance can be tracked and improved. Requires the CPUC to require a utility to take any remedial actions necessary to achieve the CPUC's targets. • Requires each utility to include a detailed analysis of its current qualified staffing level and future required qualified staff level for each job classification. Requires each utility to upgrade a distribution circuit under specified circumstances.
• SB 529 (Gonzalez): Support
 Requires the CEC to establish a program to fund electric vehicle car share sites at affordable housing facilities.
• SB 537 (Becker): Support
• Allows a board, commission, or advisory body of a
multijurisdictional, cross county, local agency with appointed members that is subject to the Brown Act to use alternate teleconference provisions if specified conditions are met. Requires at least a quorum of members of the legislative body to participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction, require the legislative body to identify in the agenda each member who plans to participate remotely and to include the address of the publicly accessible building from each member will participate via teleconference and prohibits a member from participating remotely pursuant to these provisions unless the remote location is the member’s office or another location in a publicly accessible building and is more than 40 miles from the location of the in-person meeting. Repeals these alternative teleconferencing provisions on January 1, 2028.

Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update 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.23-01-007 Diablo Canyon Potential
Extension Order
Instituting Rulemaking
(OIR)
The OIR opened to
implement provisions of
SB 846 requiring the
CPUC to consider the
potential extension of
operations at the Diablo
Canyon Power Plant
(DCPP).

R.22-10-010 Order Instituting
Rulemaking (OIR) to
Implement AB 843
(2022) – The Bioenergy
Adjusting Tariff Program
Expeditiously implement
AB 843 to allow CCA
access to the BioMAT
program for future
subsidies for biomass
procurement and extend
sunset date indefinitely
until all MWs have been
filled
A.20-02-009; A.21-03-
008; A.21-06-001;
A.22-05-029
PG&E 2019 Energy
Resource Recovery
Account (ERRA)
Compliance Application;
PG&E 2020 ERRA
Compliance Application;
2021 ERRA Compliance
Application; 2022 ERRA
Compliance Application;
2023 ERRA Compliance
Application
Reduce the ERRA impact
on the PCIA; increase
data transparency from
the IOUs
R.20-08-020 Rulemaking to develop a Mitigate impacts to Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update successor to existing Net
Energy Metering (NEM)
tariffs and to review and
refine existing NEM
tariffs
Pioneer NEM customers
R.21-03-011 Provider of Last Resort
(POLR) Order Instituting
Rulemaking (OIR)
This OIR will implement
POLR requirements
directed by SB 520 and
will establish cost
allocation and recovery
for the POLR.

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
CEC - OIR – 21-OIR-03,
23-LMS-01
Load Management
Standards (LMS)
The objective of the LMS
rulemaking is to increase
statewide demand
flexibility through the
development of hourly
locational marginal cost-based rates.

Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update • 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, were 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 for this Proceeding to move quickly.
• A Scoping Memo and Ruling was issued by Commissioner John Reynolds on April 6, 2023. The Rulemaking omits from this proceeding issues relative to contract pricing and queuing requirements as well as amendments to the sunset date in order to expedite implementation of AB 843 and instead indicates that the CPUC will revise the BioMAT program in Rulemaking 18-07-003 or its successor proceeding.
• The ALJ will issue a Ruling requesting additional information from the parties in May. CalCCA will be formalizing its proposal for incorporating CCAs into the BioMAT program and will initiate meetings with both Energy Division and the IOUs for discussion.

Opening Comments in response to the May ALJ Ruling are due in June; Replies will also be due in June. Within 10 days of Reply Comments parties may request Evidentiary Hearings; a PD should be issued within 90 days of Reply Comments on the Ruling; a CalCCA Tiger Team will consider a potential Motion in the RPS proceeding on the BioMAT program sunset date as recommended by the CPUC.
• A Workshop was held on April 28, 2023 to provide a venue to discuss the process for administration of CCA BioMAT contract terms and conditions, tariffs, program queue coordination, cost recovery, contract management, and oversight. Energy Division, Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update CalCCA, CCA representatives, and the IOUs discussed
implementation of CCAs into the existing BioMAT program. • Net Billing Tariff (NBT)/ (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 Proposed Decision (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.
• NBT Working Group meetings are ongoing and the Joint CCA Working Group held a meeting on March 21, 2023. PG&E and SCE filed Advise Letters (ALs) regarding the Net Billing Tariff on March 27, 2023 to address protests to the NBT. A Scoping Memo and Ruling was filed on March 24, 2023 extending the Proceeding 90 days.
• Opening Comments on the ALJ Ruling seeking responses to questions on the Virtual Net Energy Metering (VNEM) tariff and the Net Energy Metering Aggregation (NEMA) sub-tariff were filed on March 21, 2023, and Replies were filed on April 4, 2023; many stakeholders filed Comments.
• On April 3, 2023, an ALJ Ruling was issued seeking comments on AB 2143 which mandates prevailing wages to all construction workers and apprentices for customer-sited renewable electrical generation facilities and any associated battery storage projects.

April 24, 2023 and May 4, 2023, Comments and Reply Comments were filed on the Ruling. May 18, 2023, Protests to IOUs’ advice letters establishing Net Billing tariffs due.
• NBT went into effect on April 15, 2023, but implementation is contingent upon the IOUs’ ability to get billing systems in place.

Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update • Environmental groups filed a petition with the California Court of Appeal last Wednesday, requesting a review of a new rooftop solar policy they fear could suppress the adoption of clean energy systems. The Commission’s new policy may violate California’s climate laws and could stifle rooftop solar growth. Under the new policy, existing solar producers can maintain their current arrangements for 20 years, but future customers will be subject to rates linked to how much electricity is worth at a given time of day, while also paying a fixed monthly fee. The policy, which took effect April 15, 2023, reduces the amount of payback new customers can receive when they sell excess electricity back to the grid. • 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 Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update 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 event. On March 21, 2023 the Commission issued an Order extending the statutory deadline for the Proceeding to June 1, 2023. The PD prohibits PG&E, SCE, and SDG&E from adjusting future rates to collect any revenue shortfalls recorded as under collections in their respective balancing accounts caused by the PSPS events in 2019. The PD also adopts a methodology to calculate the estimated unrealized revenues PG&E, SCE, and SDG&E incurred or will incur during future PSPS events. The item is set to be voted on at the May 18, 2023 Voting Meeting.
• 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. Protests and Responses to PG&E's Application were filed on March 31, 2023. Keyes and Fox prepared a Protest to PG&E's Application and filed it on March 31, 2023.
• 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 Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update 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. PG&E’s 2023 - 2024 ERRA Forecast Application will be filed in May 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 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 Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update aspects of the Decision that the AfR challenged. 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
Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update energy allocation process as administered by PG&E
and SCE, the staff’s proposed MPB is also a workable
solution; 3) The CPUC 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 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.
• On March 3, 2023 an ALJ Ruling was issued on staff's
GHG-free Proposal and Issues in Scope requesting
Comments on whether the Commission should
consider additional issues before closing this
proceeding: (a) whether GHG-Free resources are
under-valued in the PCIA, and if so, whether to adopt
an adder or allocation mechanism; (b) whether to
adopt a new method to include long-term fixed-price
transactions in calculating the RPS adder; and (c)
whether to modify the calculation of the PCIA energy
index MPB. Comments were filed on March 17, 2023;
Reply Comments were filed on March 24, 2023;
CalCCA took no position at that time on the request by
PG&E and SCE to place in scope the concept of a
PCIA/PABA trigger. PG&E CCAs are still awaiting a PD
on Energy Index MPB, RPS MPB, and GHG MPB.
• On May 4, 2023, a PD was issued on Energy Index
MPB, RPS MPB, and GHG MPB. The PD modifies the
calculation of the PCIA by establishing a MPB and
Plf)NEER

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2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update allocation mechanism to address the GHG-free
incremental value of large hydroelectric energy
resources above fossil fuel resources; the PD revises
the calculation of the Energy Index MPB to improve
accuracy and transparency but declines to modify the
calculation of the RPS MPB or modify access to
confidential data for ESPs.
• 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 (SOD) 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 in 2022 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, 2022. Implementation Track Proposals were filed on January 20, 2023. Opening and Reply Comments on Proposals were filed on February 17 and February 27, 2023. A PD was issued on March 3, 2023 on Phase 2 of the Reform Track dealing with RA slice of day proposals and the three Workstreams to address implementation. The PD declines to perform an assessment of whether the RA supply stack is sufficient to meet the new hourly requirements and declines to perform an assessment on the need for hourly transactability before the implementation of slice-of-day for RA year 2025. On March 3, 2023 CalCCA submitted Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update Comments and held ex partes with the Commissioners' offices opposing these aspects of the PD. Replies were filed on March 28, 2023. On April 4, 2023 a Revised Proposed Decision to the March 3, 2023 PD on Phase 2 of the Resource Adequacy Reform Track dealing with RA Slice of Day Proposals was issued; it primarily addresses the three “Workstreams” created to implement SOD which include: 1) compliance tools need for a SOD RA program, (2) how to count different resource types and conversion of the planning reserve margin (PRM) to an hourly SOD structure, and (3) coordinating the CAISO processes with the Commission’s SOD RA framework. The PD was held from the April 6, 2023 CPUC Voting Meeting. A Final Decision on RA Reform track is expected in April. • 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 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 Plf)NEER

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 are 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.
• The CPUC published the 2021 RA report at the end of March 2023.

The report shows RA prices and RA penalties rising and MWs of capacity shrinking, supporting CCAs' arguments about troubles in the RA market. The report states that in 2021, the weighted average price of system RA surpassed local RA, at $7.02/kW-month and $6.49/kW-month respectively. There were 21 citations for RA penalties in 2021 totaling $13,425,486 compared to $2,707,435 in 2020.
• The CAISO filed the Final 2024 Local Capacity Requirement Report on May 1, 2023. The filing included an update on the Flexible Capacity Report schedule,
indicating the CAISO will not be able to file the report on May 12, 2023, as originally scheduled. In response to this filing, the CPUC issued a Ruling modifying the schedule for the 2024 Flexible Capacity Requirement Report Comments. Comments on the report will be due two business days after the CAISO files the report. • 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 Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update 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 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 was held 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. The Workshop included Joint Parties, the IOUs, the CPUC, the CEC, and the Public Advocates Office (PAO). Each party provided a presentation on their fast trip programs, progress made, impacts of fast trip programs on customers and
communities, and steps moving forward. This was a big success for Pioneer as EPSS issues are being further considered by the CPUC.

Joint Parties are seeking more data on the fast trip programs to further identify issues and impacts, and to mitigate against the effects of the Programs.

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2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update o On April 10, 2023, the Joint Parties sent a data request to all three IOUs asking for specific information relating to each Fast Trip program. Pioneer has received responses on the data requests from all three IOUs; Pioneer staff will review and discuss amongst the Joint CCAs and report back.
• 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.
o Governor Newsom’s oil profits penalty bill, SBX 1-2 (Skinner), passed through an “Extraordinary Session” prior to the Spring Legislative Recess. The bill specifically gives the CEC the statutory authority to set a cap on profits and impose penalties through a regulatory process if it determines that oil companies are making excessive profits and that a penalty will not result in higher consumer prices.
o On March 16, 2023, the CPUC opened a public investigation to examine the root causes of last fall and winter’s price spikes on natural gas prices and the broader Western region’s energy markets. These spikes create higher prices for energy and translate to higher electricity costs impacting ratepayers.

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2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update • Provider of Last Resort (POLR):
o This OIR will implement provider of last resort (POLR) requirements directed by SB 520 and will establish cost allocation and recovery for the POLR.
o Phase 1- IOU as POLR
 Establish new policies to plan for and prevent catastrophic failures.
 Review and update existing procedures and policies for financial security requirements/reentry fees and LSE
deregistration process and compliance requirements.
 Last minute procurement in market conditions in which there is a shortfall of resource capacity could put the POLR at risk and increase the cost to returning customers and bundled customers.
 Advance indicators of financial instability could help provide orderly, less costly transitions. CPUC should implement monitoring of LSE financial health. Triggers induced financial reporting, and should hedging positions also be reported and reviewed?
 We are in Phase 1. This is the last round of comments. After this, the CPUC will determine if hearings are necessary, then briefs and a proposed decision is expected in Q3 or 4 in 2023.  Energy Division staff does not have a proposal for the FSR calculation itself. The only FSR proposals are from the IOUs and CalCCA, which were presented through the calculators during one of the workshops.
 Phase 2 will consider other LSEs acting as the POLR.
• CEC Load Management Standards (LMS):
 LMS/MIDAS: Joint IOUs and CCAs are seeking an extension of the July 1, 2023 MIDAS data upload deadline once the CEC finalizes the MIDAS protocols. CalCCA met with CEC
Commissioner McCallister to go over request for extension on April 10, 2023; the meeting reportedly went well but there was no conclusive result. Commissioner McAllister requested that the parties present a “sequenced compliance” plan with the minimum compliance each party can attain by July 1, 2023, and a plan for compliance over the next twelve
Plf)NEER

COMMUNITY ENERGY
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org May 25, 2023 – Pioneer Community Energy Legislative and Regulatory Update months. CalCCA is working with the IOUs, seeking an
extension of the LMS regulations requirement for LSEs to upload their existing time dependent rates to the CEC’s MIDAS. A joint IOU/CCA letter requesting an extension was filed in CEC Docket 23-LMS-01, and copies were provided to Commissioner McAllister and other CEC Staff, on April 28, 2023. IOUs/CCAs Extension Request: a Ruling on the
extension request may take up to a month; if the Pioneer Board authorizes an extension request, Pioneer should file their individual request, as Pioneer is unlikely to receive a ruling soon on the broad request; must submit individual extension request within 30 days after the Board has
authorized a request for extension.
• Diablo Canyon:
 Bill measure (AB 1533 – Assembly Utilities and Energy Committee) and a subsequent CPUC proceeding are moving
as PG&E is seeking to exclude RA and GHG-free renewable benefits from Diablo Canyon. CalCCA is arguing RA Benefits should be allocated to all jurisdictional LSEs and GHG-free attributes should be allocated to all LSEs on a voluntary basis.

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5/17/2023
1 Customer
Engagement
Report
May 2023
May 25, 2023
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
Types of
Customer
Engagement
1 2
5/17/2023
2 Direct Customer
Engagement
01 Phone Calls/Emails
• 712 Total Calls
• 63 Total Emails
• 93.6% Customer Sat
02 Customer Influence
• 2 Opt Outs Rescinded
• 17 Re-enrollments
• 39 Retained
03 Customer Engagement
• 309 Event Contacts
• 25 Small Business
Recapture Effort
04 Chatbot
• 3,100 Customer users
• 7 Direct staff engagement
Upcoming Customer &
Key Stakeholder Events
• Auburn Home Show
• El Dorado County Fair
• Horseshoe Bar-Penryn MAC
• Granite Bay MAC
• Joint Chambers Economic Development
and Govt. Relations Meeting
• Auburn Chamber GAED
• Ways to Save – EDC In-person workshop
3 4
5/17/2023
3 Social Media Activity
Facebook
• 566 Page Views
• 5 Items Posted
• 345 Post Impressions
LinkedIn
• 213 Followers
• 4 Items Posted
• 232 Post Impressions
Website Users
• 9,700 Total Users
• 18,500 Total Pages Views
• 3,100 Chatbot users
Instagram
• 36 Followers
• 4 Items Posted
• 52 Impressions
Other Media Social Media Ads
• 3 Campaigns
• 138 Engagements
• 17,835 Impressions
Google Ads
• 4 Campaigns
• 6,838 Clicks
• 1,371,506 Impressions
Radio
• 689 Radio Spots
• 12,964,532 Total Audience
Bus Shelters
• 2,206,200 Impressions
Print Media
• 1 Ad
• 119,700 Circulation
5 6
5/17/2023
4 Key Metrics
Green100
Total – 284
New - 7
Total Participation
Rate

84.6%
Total New
Customers
770
Non-Residential
Participation Rate

93.5%
7

Pioneer Community Energy Board of DirectorsMay 25, 2023

Pioneer Community Energy Board of Directors
May 25, 2023