Pioneer Community Energy Board of Directors
June 15, 2023

Pioneer Community Energy
Board of Directors Agenda
June 15, 2023
2:30 PM - Closed Session
3:00 PM - Open Session
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.

How to Participate Using Zoom
You can join the meeting using the following link:
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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
2:30 PM Call to Order
1) Conference with Labor Negotiators - GC §54957.6
Unrepresented Employees: All Employees
3:00 PM Call to Order
I. GENERAL ADMINISTRATIVE FUNCTION – PART I
A. CALL TO ORDER

1. Roll Call
B. PUBLIC REPORT OF CLOSED SESSION
C. AGENDA REVIEW
D. PRESENTATIONS BY THE PUBLIC ON MATTERS NOT ON THE AGENDA WITHIN THE JURISDICTION OF THE BOARD Persons may address the Board on items not on this agenda. Please limit comments to 3 minutes per person. According to State Law (the Brown Act), items must first be noticed on the agenda before any discussion or action. The Board is prohibited from discussing issues not on the agenda brought to them at this time.

II. CONSENT AGENDA
1) APPROVAL OF THE CONSENT AGENDA
All items on the Consent Agenda have been recommended for approval by the Executive Director. All Consent items will be approved by a single vote. Anyone may ask to address Consent items prior to the Board acting, and the item may be moved for discussion. a) ADMINISTRATION
Approve minutes of the May 25, 2023 regular meeting and the June 1, 2023 special meeting. (ECKERT)
b) FINANCE & ADMINISTRATION
Receive Monthly Financial Reports through April 30, 2023. (KOEHN) c) POWER PROCUREMENT
Adopt a Resolution to Authorize the Executive Director to sign a two-year contract for technical support with Pacific Energy Advisors, Inc. (PEA) in an amount not to exceed$860,712. Monthly fixed payments over the 2-year period 9/1/2023 – 8/31/2025 average $32,113 (totaling $770,712), plus a $90,000 budget for expansion analyses and filings. (KANG)

REGULAR SESSION

CLOSED SESSION
d) ADMINISTRATION
Adopt a Resolution authorizing the Executive Director to execute a second amendment to the agreement with Richards, Watson & Gershon for legal services.(ECKERT)
e) FINANCE & ADMINISTRATION
Adopt a Resolution Adjusting the Salary Schedule, Approve a Cost-of-Living Adjustment, Authorize establishment of a Flexible Spending Account program, and an additional Employer Contribution to Employee Retirement accounts and direct a compensation study every three years. (KOEHN)
III. REGULAR AGENDA
2) ADMINISTRATION
Adopt a Resolution Commending Director Heathcock for His Dedicated Service to Pioneer Community Energy (ACTION- ECKERT)
RECOMMENDATION: Adopt Resolution commending Director Heathcock for his dedication and outstanding service in directing Pioneer Community Energy. 3) MARKETING & COMMUNICATIONS
Overview of Public Outreach (ACTION - ECKERT)
RECOMMENDATION: Provide direction on funding for public outreach and marketing activities for the remainder of 2023.
4) FINANCE & ADMINISTRATION
Adopt a Resolution Approving Fiscal Year 2023-24 Budget (ACTION-KOEHN) Recommendation: Receive a presentation on the Recommended Fiscal Year 2023-24 Budget and Adopt Resolution Approving Fiscal Year 2023-24 Budget.

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:

July 20, 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 June 15, 2023 regular meeting of the Pioneer Community Energy Governing Board was posted and available for public review on June 9, 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
May 25 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 May 25, 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.

Agenda Review
Reviewed and made no revision to the meeting agenda for May 25, 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 April 20, 2023, regular meeting.

Received Quarterly Financial Reports through March 31, 2023.

Adopted Resolution 2023-12 approving plan to delay compliance with Uploading Time Varying Rates to the Market Informed Demand Automation Server (MIDAS) database.

Received and approved 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.”
Adopted Resolution 2023-13 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.

MOTION: Holmes/Cortez Vote: 8:0:3
ROLL CALL: Andreatta, Cortez, Holmes, Ivy, Janda, Jones, Petersen, Dowdin Calvillo.

No/Abstain: None.

Absent: Heathcock, Hidahl, Yarbrough.

Vice Chair Hidahl, Director Heathcock, and Director Yarbrough joined the meeting immediately following the Consent Agenda.

Entry No. 3
Decision on Pursuit of Public Purpose Program Funding
Received a report from Nancy Barba of Frontier Energy and provided 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.

Directed staff to first wait and see the outcome of CalChoice Petition for Modification.

Entry No. 4
Cybersecurity Assessment and Information Technology Review Received a report from Chris White of Hutchinson & Bloodgood on the annual Cybersecurity Assessment and Information Technology Review.

Executive Director Eckert commented that this assessment proves that Pioneer’s customer data is well-protected.

Finance & Administration Director Koehn expressed appreciation for the presenter; and recognized Internal Operations Coordinator Lund as Pioneer’s point person for Information Technology.

Entry No. 5
Update on California Market Prices for Pioneer’s Power Procurement Received an update from Pioneer Community Energy staff regarding California market prices for Energy, Renewable Energy Certificates and Resource Adequacy.

Entry No. 6
Proposed Fiscal Year 2023-24 Budget
Received a presentation on the Proposed Fiscal Year 2023-24 Budget and provided direction as appropriate.

The Recommended Budget will be brought to the Board for approval at the June 15, 2023 Board meeting.

Requested CCA staff-to-load comparison to include added use of consultants in addition to Full-Time Employees.

Chief Operating Officer Kang commented that consultant use for all CCAs is very similar due to the nature of business.

Suggested building reserves and keeping rates lower rather than launching programs just yet.

Inclined to consider some programs, but maybe not $4M; suggested to raise efforts to increase the participation rates.

For the sake of bringing a complete Recommended Budget in June, Executive Director Eckert requested designating one percent ($2M) of the revenue to Programs.

Governing Board Minutes
May 25 2023
page 2
The Board agreed to the budget recommendation by consensus, and recommended program #3 (Residential EV), #6 (Residential EE); and #7 (High Schools); as programs with the greatest cost-benefit leverage.

Staff will incorporate feedback from the Audit & Finance Committee, Employee Health & Welfare ad hoc Committee, and the Board of Directors into a Recommended Budget for consideration on June 15, 2023.

Entry No. 7
Heard General Administration Functions, Part II.

Board Member Communications
Committee Chair Dowdin Calvillo reported that the Employee Health & Welfare ad hoc Committee met on May 1, and 22, 2023; and will convene with the Board in a Closed Session at 2:30 PM on June 15, 2023.

Committee Chair Janda reported that the Finance & Audit Committee met on May 22, 2023. The Committee received a Summary Findings and Recommendations presentation from Hutchinson and Bloodgood regarding the 2023 Cybersecurity Review. The Committee also received the FY 2023-24 Proposed Budget presentation from staff and the Committee provided budget input and feedback.

Executive Director Communications
Executive Director Eckert reported that Pioneer staff had processed the NEM Annual cash out of $1.1M to 5,600 customers.

Executive Director Eckert announced that a Board Workshop has been scheduled at 3:00 PM on Thursday, June 1; and that upcoming public outreach is scheduled for the Auburn Home Show and the El Dorado County Fair.

Executive Director Eckert informed the Board of the Income-Based Utility Rating which is based upon household income levels; and will continue to apprise the Board on findings.

Executive Director Eckert commented that Board Chair Dowdin Calvillo attended the CalCCA Annual Conference.

Informational Items
Received the Glossary of Terms.

Adjournment
The meeting adjourned at 5:21 PM.

ATTEST:

Minutes approved as presented by a majority vote of
the Governing Board on June 15, 2023.

Teresa Willock, Board Secretary
Governing Board Minutes
May 25, 2023
page 3

PIONEER COMMUNITY ENERGY

GOVERNING BOARD

SPECIAL MEETING
June 1, 2023
Minutes
Entry No. 1
Heard General Administrative Functions – Part I
Call to Order
Pioneer Community Energy Governing Board met in open session at 3:00 PM on June 1, 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; Nevada City – City Hall, Wetherall Conference Room, 317 Broad Street, Nevada City, California, 95959; and was accessible for viewer participation on the Zoom platform at the following link: https://us06web.zoom.us/j/86525891399; and, was live streamed for viewing on the Pioneer website at: https://pioneercommunityenergy.org/about-us/meetings-and-agendas/.

Roll Call
Chair Dowdin Calvillo presided over the meeting.

Public Comment
There were no comments from members of the public on items not listed on this agenda.

Entry No. 2
Pioneer Community Energy Governing Board Workshop
Received an overview of Pioneer Community Energy including governance, objectives, and responsibilities.

Adjournment
The meeting adjourned at 4:08 PM.

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 Vice Chair
John Hidahl
Lori Parlin
x City of Colfax 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 x 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 Greg Janda x David Bass
ATTEST:

Minutes approved as presented by a majority vote of
the Governing Board on June 15, 2023.

Teresa Willock, Board Secretary

Staff Report – Item 1b
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1b: Receive Draft Financial Reports Through April 2023 Date: 6/15/2023

RECOMMENDATION
Receive Monthly Financial Reports through April 30, 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 April 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.

STRATEGIC PLAN
Strategic Priority 5: Financial Stability & Strategic Growth

FISCAL IMPACT
The YTD change in net position through ten months of the fiscal year is $28.2 million.

ATTACHMENTS

1. Financial Reports through April 30, 2023
Plf)NEER

COMMUNITY ENERGY
MAHER

ACCOUNTANCY

ACCOUNTANTS' COMPILATION REPORT
Management
Pioneer Community Energy
Management is responsible for the accompanying financial statements of the CCA Program of Pioneer Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of April 30, 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 AICP A. 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.

HJv,,A~~
San Rafael, CA
May 31 , 2023
1101 Fifth Avenue, Suite 200 Son Rafae l, CA 94901 415 459 1249 rnahercpo.corn 1 PIONEER COMMUNITY ENERGY

CCAFUND

STATEMENT OF NET POSITION
As of April 30, 2023
ASSETS
Current assets
Cash and cash equivalents
Investments
Accounts receivable, net of allowance
Accrued revenue
Other receivables
Interest receivable
Prepaid expenses
Deposits
Total current assets
Non current assets
Lease asset, net of amortization
Total noncurrent assets
Total assets

LIABILITIES
Current liabilities
Accrued cost of electricity
Accounts payable
Other accrued liabilities
Interest payable
Deposits
Note payable
Lease liability
Total current liabilities
Noncurrent liabilities
Note payable
Lease liability
Total noncurrent liabilities
Total liabilities

NET POSITION
Net investment (deficit) in capital assets
Unrestricted net position
Total net position
See accountants' compilation report.

CCAFund
$ 13,177,950
33,877,433
20,217,919
8,769,548
1,619,725
54,000
72,443
5,280,478
83,069,496
1,469,578
1,469,577
84,539,073
9,993,753
500,884
273,918
23,634
393,756
650,980
74,470
11,911,395
6,711,934
1,578,952
8,290,886
20,202,281
(183,844)
64,520,636
$ 64,336,792
2 PIONEER COMMUNITY ENERGY

CCAFUND

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION
Ten Months Ended April 30, 2023

OPERATING REVENUES
Electricity sales, net
Other income
Total operating revenues

OPERATING EXPENSES
Cost of electricity
Contract services
Staff compensation
Other operating expenses
Total operating expenses
Operating income (loss)

NONOPERATING REVENUES (EXPENSES)
Grant income
Investment gains (losses)
Interest and financing expense
Nonoperating revenues (expenses), net

CHANGE IN NET POSITION
Net position at beginnii:ig of period
Net position at end of period
See accountants' compilation report.

CCAFund
$ 170,259,986
15,000
170,274,986
135,069,352
4,649,181
2,443,045
593,386
142,754,964
27,520,022
1,041,957
147,811
(516,737)
673,031
28,193,053
36,143,739
$ 64,336,792
3 PICf)NEER COMMUNITY ENERGY
Participation Rates - April 2023
AUBURN INC 85.72% 85.87% 86.22%
COLFAX INC 88.54% 89.07% 89.15%
LINCOLN INC 83.18% 83.08% 83.38% LOOMIS INC 88.70% 88.62% 89.06% PLACERVILLE INC 87.02% 86.82% 87.17% ROCKLIN INC 91.35% 90.96% 91.61% UNINC EL DORADO CO 81.20% 81.26% 81.45% UNINC PLACER CO 85.26% 85.22% 85.61% Grand Total 84.61% 84.53% 84.87%
4 MAHER

ACCOUNTANCY

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 April 30, 2023, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AI CPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

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

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

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

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

Hdv,,A~
San Rafael, CA
May 31, 2023
1101 Fifth Avenue , Suite 200 San Rafael , CA 94901 415 459 1249 mahercpa,com 5

PIONEER COMMUNITY ENERGY

CCAFUND

BUDGETARY COMPARISON SCHEDULE
Ten Months Ended April 30, 2023
2022/23 YTD 2022/23
Amended YTD 2022/23
2022/23 YTD Budget Actual/ 2022/23 Amended
Amended 2022/23 YTD Variance Amended Amended Budget
Budget Actual (Under) Over Budget% Budget Remaining

ENERGY REVENUES
Energy Sales $ 175,248,980 $ 173,571,108 $ (1,677,872) 99% $ 210,160,000 $ 36,588,892 Greenl00 Sales 25,268 22,269 (2,999) 88% 30,000 7,731
Congestion Revenue Rights 5,849,190 5,827,598 (21,592) 100% 6,000,000 172,402 Less Uncollectible Accounts (2,366,202) (2,291,433) 74,769 97% (2,837,000) (545,567) Total Operating Revenues 178,757,236 177,129,542 (1,627,694) 213,353,000 36,223,458

ENERGY EXPENSES
Power Supply 143,293,630 140,896,950 (2,396,680) 98% 177,984,000 37,087,050 OPERA TING MARGIN 35,463,606 36,232,593 768,986 35,369,000 (863,593)

OPERATING EXPENSES
Administration
Compensation 531,877 448,735 (83,142) 84% 626,252 177,517 Contract services 499,438 118,928 (380,509) 24% 546,325 427,397 Operating expenses 498,913 406,608 (92,305) 81% 541,225 134,617 Total Administration expenses 1,530,227 974,271 (555,956) 64% 1,713,802 739,531 Finance
Compensation 636,275 616,709 (19,566) 97% 760,530 143,821 Contract services 493,433 335,875 (157,558) 68% 553,350 217,475 Operating expenses 245,986 247,880 1,894 101% 278,983 31,103 Total Finance expenses 1,375,694 1,200,464 (175,230) 87% 1,592,863 392,399 Power Procurement
Compensation 514,905 492,402 (22,503) 96% 617,886 125,484 Contract services 1,332,022 1,164,212 (167,810) 87% 1,485,426 321,214 Operating expenses 31,542 16,468 (15,073) 52% 35,450 18,982 Total Power Procurement expense, 1,878,468 1,673,082 (205,386) 89% 2,138,762 465,680 Customer Care
Compensation 368,298 339,944 (28,353) 92% 441,957 102,013 Contract services 2,452,510 2,171,887 (280,623) 89% 2,935,012 763,125 Operating expenses 6,653 517 (6,135) 8% 10,863 10,346
Total Customer Care expenses 2,827,460 2,512,348 (315,112) 89% 3,387,832 875,484 Marketing & Communications
Compensation 128,657 81,038 (47,619) 63% 154,388 73,350 Contract services 457,322 444,181 (13,141) 97% 556,240 112,060 Operating expenses 367,542 176,885 (I 90,656) 48% 408,050 231,165 Total Marketing expenses 953,520 702,104 (251,416) 74% 1,118,678 416,574 Legislative & Regulatory
Compensation 405,541 396,501 (9,040) 98% 496,649 100,148 Contract services 299,685 170,777 (128,909) 57% 353,808 183,032 Operating expenses 4,375 2,272 (2,103) 52% 5,250 2,978
Total Legislative expense, 709,601 569,549 (140,052) 80% 855,707 286,158 Programs
Compensation 101,934 56,042 (45,891) 55% 122,320 66,278 Contract services 85,182 (85,182) 0% 97,000 97,000
Operating expenses 5,917 1,040 (4,877) 18% 6,500 5,460
Total Programs expenses 193,032 57,082 (135,950) 30% 225,820 168,738 Total Operating Expenses 9,468,002 7,688,901 (1,779,102) 81% 11,033,464 3,344,563

NON-OPERA TING REVENUES (EXPENSES)
Investment gains (losses) 62,500 147,811 85,311 236% 75,000 (72,811) Miscellaneous income 15,000 15,000 (15,000)
· Term Loan Debt Service (791,668) (760,572) 31,096 96% (950,000) (189,428) Additional Tenn Loan Principal (2,100,000) (2,100,000) (2, I 00,000) Line/Letter of Credit Fees (250,000) (171,287) 78,713 69% (250,000) (78,713) Financial Security Requirement (356,000) 356,000 0% (356,000) (356,000) Nonoperating revenues (expenses), ne1 (3,435,168) (2,869,048) 566,120 (3,581,000) (711,952) Total Expenses (Energy, Operating, Non-Operating) 156,196,800 151,454,898 (4,741,901) 192,598,464 41,143,566 Contribution to/(from) Reserves $ 22,560,436 $ 25,674,644 $ 3,114,208 $ 20,754,536 $ (4,920,108)

Staff Report – Item 1c
To: The Governing Board
From: Sam Kang, Chief Operating Officer
Item 1c: Adopt a Resolution Approving and Authorizing the Executive Director to sign a Two-year Contract for Technical Support with Pacific Energy Advisors, Inc. Not to Exceed $860,712
Date: 6/15/2023

RECOMMENDATION
Adopt a Resolution to Authorize the Executive Director to sign a two-year contract for technical support with Pacific Energy Advisors, Inc. (PEA) in an amount not to exceed $860,712. Monthly fixed payments over the 2- year period 9/1/2023 – 8/31/2025 average $32,113 (totaling $770,712), plus a $90,000 budget for expansion analyses and filings.

BACKGROUND
During its ordinary course of business, over 90% of Pioneer Community Energy’s (Pioneer) costs are attributable to procuring energy for its customers. With the limited staff available, Pioneer receives support from its technical consultant to help meet its regulatory requirements and Pioneer Board mandates. Due to the importance of energy procurement and compliance-related reporting requirements, it is critical that Pioneer hire an experienced and independent technical consultant that assists in pro forma and rate analyses, load forecasting, energy procurement, compliance reporting, and general position and risk monitoring and reporting (technical support). PEA has a long, and proven track record of providing technical assistance, having launched the first Community Choice Aggregator (CCA) in 2010 and successfully assisting over a dozen CCAs today.

ANALYSIS & DISCUSSION
PEA has been providing technical support to Pioneer since early 2018. The services provided will remain the same except with the addition of the third bullet and contain the following key items:

1. Technical Support & Regulatory Reporting Services
a. Working with Pioneer leadership and its designated Scheduling Coordinator, PEA will assist in managing Pioneer’s power resources portfolio in accordance with Pioneer’s adopted policies and applicable regulatory requirements. PEA will support Pioneer in the areas of resource planning, portfolio management, rate setting, energy procurement, and regulatory reporting activities related to electric power supply.

2. Regulatory Support & Other Services - this task includes as-needed regulatory and other consulting services not otherwise included in Task 1.
a. Provide technical expertise, analysis, and advice in relation to pertinent regulatory proceedings. Such services shall entail periodic reviews and editorial support during comment/brief drafting as well as coordination with Pioneer staff/advisors on such matters.
b. Provide support for other regulatory compliance filings and reports such as those that may relate to storage mandates or mandated resource plans. c. Update Implementation Plan as necessary to address any changes to Pioneer membership or service territory.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 1c Agenda Date: 6/15/2023

3. Ad hoc Expansion Analyses: Includes historical data evaluation and pro forma operating projections for new communities that may be added to Pioneer’s membership. CCA Expansion Analyses will also include assistance with the preparation of requisite CCA Implementation Plan & Statement of Intent Amendments/Addenda, as required by the State of California. PEA will coordinate with Pioneer’s management team prior to the completion of any CCA expansion analyses to develop a mutually agreeable schedule for completion and budget (which is currently estimated at 3 analyses at $30,000 per analysis).

The attached contract is for the continuation of services provided by PEA. The amount of the contract is directly related to the amount of time spent on technical support related to Pioneer’s needs.

FISCAL IMPACT
The recommendation results in a fiscal impact of up to $860,712 from September 1, 2023, through August 31, 2025.

ATTACHMENTS

1. Resolution Approving and Authorizing the Executive Director to Execute a Renewal Agreement with PEA.

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 June 15, 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, this Resolution Approving and Authorizing the Executive Director to Execute an Agreement with Pacific Energy Advisors, Inc. (PEA) has been brought before the Governing Board; and
WHEREAS, a competitive solicitation requirement is hereby dispensed and a sole source procurement with PEA is justifiably in the best interest of Pioneer for the following reasons:
• PEA and its founding principals have a long, and proven track record of providing consultancy work in pro forma and rate analyses, load forecasting, energy procurement, compliance reporting, and general position and risk monitoring and reporting (technical assistance) since 2006.
• PEA provides technical assistance to over a dozen CCAs today, having launched the first Community Choice Aggregator (CCA) in 2010.
• PEA has been successfully providing excellent technical assistance to Pioneer since 2018 and is the only vendor that can provide this level and type of service. • PEA has provided dozens of feasibility studies, impact assessments, and implementation plans for CCAs that have expanded throughout all investor-owned utilities’ service territories, including El Dorado County, City of Placerville, City of Grass Valley, Nevada City, and Nevada County on Pioneer’s behalf.

In the matter of: A Resolution Approving and
Authorizing the Executive Director to Execute
an Agreement with Pacific Energy Advisors,
Inc. for Technical Assistance
2 BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:

1. The above recitals are true and correct.

2. The Governing Board hereby approves and authorizes the Executive Director to Execute an Agreement with PEA for technical assistance, in substantially the form attached, from September 1, 2023, through August 31, 2025, for an amount not-to-exceed $860,712 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.

Exhibit A: Agreement between Pioneer Community Energy and Pacific Energy Advisors Resolution 2023-xx
June 15, 2023
3 CONSULTANT SERVICES AGREEMENT
THIS AGREEMENT is made at Auburn, California, as of September 1, 2023, by and between Pioneer Community Energy, ("Pioneer"), and Pacific Energy Advisors, Inc. ("Consultant" or “PEA”), which 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 in Exhibit B. The amount of the contract shall not exceed Eight Hundred Sixty Thousand Seven Hundred Twelve Dollars ($860,712).

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 incorporatedherein.

5. Time for Performance. Time is of the essence. Failure of Consultant to perform any serviceswithin 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 anindependent 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 Consultantshall, 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, whichis beyond the reasonable control of the party.

9. Hold Harmless And Indemnification Agreement. At all times during the performance of this Agreement, Consultant agrees to protect, defend, and indemnify Pioneer in accordance with the provisions contained in Exhibit D. 4 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 inExhibit D. All costs of complying with these insurance requirements shall be included in Consultant’s fee(s). These costsshall 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 Agreementonly 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 mannerand 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 and upon thirty (30) days advance written notice of such termination to Consultant. In the event Pioneer shall give notice of termination, Consultant shall immediately cease rendering service upon receipt of such written notice, pursuant to this Agreement. In the event Pioneer shall terminate this Agreement:
1) Consultant shall deliver copies of all writings prepared by it pursuant to this Agreement. The term "writings" shall be construed to mean and include:
handwriting, typewriting, printing, Photostatting, photographing, and every other means of recording upon any tangible thing any form of communication 5 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. This Agreement shall remain in place until August 31, 2025, unless terminated earlier pursuant to Section 15 of this Agreement.

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 theservices hereunder. Pioneer agrees to indemnify and hold Consultant harmless from any claim arising out of reuse of the information for other than this project. Notwithstanding the foregoing, Pioneer and Consultant recognize that certain spreadsheets and programs to be used by Consultant in connection with services provided under the Agreement are proprietary to Consultant, and such spreadsheets and programs shall not be subject to the provisions of this Section 19.

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 6 retained to solicit or aidin the procuring of this Agreement. In addition, Consultant agrees that no such person will be employed in the performance of this Agreement without immediately notifying Pioneer.

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

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

24. Governing Law. This Agreement is executed and intended to be performed in the State of California, and the laws of that State shall govern its interpretation and effect. Any legal proceedings on this Agreement shall be brought under the jurisdiction of the Superior Court of County of Placer, 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:
7 PIONEER COMMUNITY ENERGY: CONSULTANT:

Pioneer Community Energy Pacific Energy Advisors, Inc.

Attn: Don Eckert Attn: John Dalessi
2510 Warren Drive Suite B 1839 Iron Point Road, Suite #120 Rocklin, CA 95677 Folsom, CA 95630
Phone: 916/251-8575 Phone: 916/936-3301
Any notice so delivered personally shall be deemed to be received on the date of delivery, and anynotice mailed shall be deemed to be received five (5) days after the date on which it was mailed.

Executed as of the day first above stated:

PIONEER COMMUNITY ENERGY
By:

Print Name/Title: Don Eckert, Executive Director
Approved As to Form – General Counsel:

By:

Print Name/Title: Inder Khalsa, General Counsel

CONSULTANT
By:

Print Name/Title: Christian Kirby Dusel, Vice President & Secretary By:

Print Name/Title: John Dalessi, President
*If Consultant is a corporation, this Agreement must be signed by two corporate officers, one of which must be the secretary of the corporation, and the other may be either the President or Vice President, unless an authenticated corporate resolution is attached delegating authority to a single officer or other officers to bind the corporation.

Exhibits
A. Scope of Work
B. Payment for Services Rendered
C. Facilities, Equipment and Other Obligations of Pioneer D. Hold Harmless Agreement and Insurance Requirements
8 EXHIBIT A

SCOPE OF SERVICES
Task 1. Technical Support & Regulatory Reporting Services Working with Pioneer leadership and its designated Scheduling Coordinator, PEA will assist in managing Pioneer’s power resources portfolio in accordance with Pioneer’s adopted policies and applicable regulatory requirements. PEA will support Pioneer in the areas of resource planning, portfolio management, rate setting, electric procurement, and regulatory reporting activities related to electric power supply. The following tasks are included within this service area:
(a) Maintain Annual and Long-Term Sales Forecast:

1. Prepare and maintain Pioneer customer and electric sales forecasts including forecast of: 1) monthly enrolled accounts, megawatt hours (“MWh”) and megawatts (“MW”)by load profile group; and 2) monthly coincident peak MW and hourly MW for the Pioneer system.

2. Update long term sales forecasts biannually and more frequently as necessary; monitor accuracy of load forecast on monthly basis; consider adjustment if variance exceeds threshold of 5% forecast error. (b) Electric Supply Management:

1. Maintain load and resource balance model to identify incremental electric procurement needs in consideration of quantified open positions, Pioneer resource and risk management policies, and applicable regulatory requirements; coordinate with management to develop procurement strategies to address electric resource needs.

2. Monitor net open positions and provide monthly reporting of net open positions mark-to-market valuation, credit exposure, and value-at-risk pursuant to Pioneer risk management policies.

3. Support procurement and/or sales of energy, capacity and renewable products including preparing requisite solicitation documents, participating in supplier/developer communications, providing analytical support during proposal/bid evaluation, supporting contract negotiations, and other related, as-needed activities.

4. Annually, prepare and update internal resource plans, including ten-year load and resource projections.

5. Assist staff with the review and validation of periodic invoices received from Pioneer’s Scheduling Coordinator and electric suppliers to ensure charges are consistent with contract terms; bring any identified discrepancies to management’s attention; and support attempts to resolve issues with counterparties.

6. Monitor energy market activities, including pricing trends and forward curves relatedto market energy, renewable energy and capacity.

7. Prepare forecast of power supply expenses for annual budget.

8. Maintain/manage relationships with qualified suppliers of requisite energy products: participate in periodic calls, email exchanges and other communications with and/or on behalf of Pioneer.

9. Maintain deal tracking and energy risk management system for Pioneer’s energy and 9 capacity contracts.
(c) Regulatory Compliance:

1. Assist with management of renewable energy portfolio per state/program standards; prepare RenewablePortfolio Standards (“RPS”) compliance filings and serve as Pioneer’s liaison with pertinent regulatory agencies for matters related to RPS compliance.

2. Assist with management of Pioneer’s Western Renewable Energy Generation Information System (“WREGIS”) account and various subaccounts, including report preparation, certificate transfer review and retirement (to facilitate mandatory and regulatory compliance), as-needed generator registration (example:

Feed-In Tariff projects undercontract with Pioneer) and other account management activities. Provide support during third-party audit processes, if applicable (i.e. for a voluntary 100% renewable energy product, should Pioneer choose to pursue Green-e Energy certification for such a product option), including data gathering and analysis, reporting and liaison activities with Pioneer’s selected auditor and Green-e Energy staff.

3. Manage Resource Adequacy compliance activities per state/program standards; prepare year-ahead and month-ahead peak demand forecasts and resource adequacy compliance demonstration filings; coordinate with Pioneer’s Scheduling Coordinator and regulatory agencies to address and resolve possible discrepancies that may arise during compliance review.

4. Provide data analysis and assist in preparing reports related to the California’s Power Source Disclosure Program, including technical elements of Power Content Label development and review; such support may also entail regulatory liaison activities required to successfully complete applicable reports.

5. Prepare compliance filings pursuant to the California Energy Commission’s biennial Integrated Energy Policy Report, Quarterly Fuels and Energy Report, and the U.S. Energy Information Agency monthly EIA-826 and annual EIA-861 reports.

6. PEA will prepare required compliance documentation under this task and coordinate with Pioneer’s regulatory personnel or contractors, who will be responsible for formal submission of filings to the appropriate regulatory body. (d) Financial Modeling and Rate Setting:

1. Provide assistance to Pioneer in maintaining its financial models and support Pioneer staff in preparing annual budgets and conducting related scenario analyses.

2. As necessary, coordinate with Pioneer and its financial advisors with regard to matters that may impact Pioneer’s financial standing, debt levels, electric rates, annual budget, resource planning and other key concerns.

3. Assist with the development of proposed Pioneer rate schedules and PG&E rates benchmarking.

Task 2. Regulatory Support & Other Services
This task includes as-needed regulatory and other consulting services not otherwise included in Task 1. These services are generally expected to fall within the following support areas:
(a) Regulatory Support:
10 1. Provide technical expertise, analysis and advice in relation to pertinent regulatory proceedings. Such services shall entail periodic reviews and editorial support during comment/brief drafting as well as coordination with Pioneer staff/advisors on such matters.

2. Provide support for other regulatory compliance filings and reports such as those that may relate to storage mandates or mandated resource plans.

3. Update Implementation Plan as necessary to address any changes to Pioneer membership or service territory.
(b) Expert Witness Services: Includes preparing testimony and related expert witness services; representation in hearings and workshops; and lead/primary drafting responsibilities with regard to comments and briefs.
(c) CCA Expansion Analyses: Includes historical data evaluation and pro forma operating projections for new communities that may be added to Pioneer’s membership. CCA Expansion Analyses will also include assistance with the preparation of requisite CCA Implementation Plan & Statement of Intent Amendments/Addenda, as required by the State of California. PEA will coordinate with Pioneer’s management team prior to the completion of any CCA Expansion Analyses to develop a mutually agreeable schedule for completion and budget (which is currently estimated at $30,000 per expansion analysis).
(d) Other Implementation Support/Staff Augmentation, not included in Task 1, as requested. 11 EXHIBIT B

PAYMENT FOR SERVICES RENDERED
Maximum Limit
Total contract amount shall not exceed $860,712.

Billing Rates and Fee Schedule
Task 1. Technical Support & Regulatory Reporting Services For the period commencing September 1, 2023 through and including August 31, 2025, PEA will bill Pioneer a flat monthly fee for all services detailed in Task 1 as reflected in the following table:

Month of Service
Delivery Task 1 Flat Fee
Month of Service
Delivery Task 1 Flat Fee
Sep-23 $ 30,319 Sep-24 $ 31,835
Oct-23 $ 30,319 Oct-24 $ 31,835
Nov-23 $ 30,319 Nov-24 $ 31,835
Dec-23 $ 30,319 Dec-24 $ 31,835
Jan-24 $ 31,835 Jan-25 $ 33,427
Feb-24 $ 31,835 Feb-25 $ 33,427
Mar-24 $ 31,835 Mar-25 $ 33,427
Apr-24 $ 31,835 Apr-25 $ 33,427
May-24 $ 31,835 May-25 $ 33,427
Jun-24 $ 31,835 Jun-25 $ 33,427
Jul-24 $ 31,835 Jul-25 $ 33,427
Aug-24 $ 31,835 Aug-25 $ 33,427
12 Task 2. Regulatory Support & Other Services
All services performed by PEA on behalf of Pioneer under Task 2 shall be billed according to thefollowing PEA Rate Schedule:

PEA Rate Schedule
Staff Hourly
Rate*
Senior Executive
Staff
$360
Managing Director $340
Director $320
Associate Director $300
Managing
Consultant
$280
Senior Consultant $260
Consultant $240
Analyst $220
*PEA’s hourly rates will be increased by 3%
on January 1st of each year.

Invoices & Payment
Invoicing shall occur monthly. Invoices shall include a list of work performed as specified in Exhibit A. Work performed shall be subject to final acceptance by Pioneer. Pioneer shall issue payment to Consultant within thirty (30) days of invoice delivery.

Submit all invoices to: Pioneer Community Energy
Attn: Sam Kang, Chief Operating Officer 2510 Warren Drive, Suite B Rocklin, CA 95677
[email protected]
13 EXHIBIT C

FACILITIES, EQUIPMENT, AND OTHER MATERIALS,

AND OBLIGATIONS OF PIONEER
Not Applicable
14 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 COMMUNITY ENERGY 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 COMMUNITY ENERGY arising in favor of any party, including claims, liens, debts, personal injuries, death, or damages to property (including employees or property of PIONEER) and withoutlimitation 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 suchclaims, demand, or suit at the sole expense of the CONSULTANT. CONSULTANT also agrees tobear 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 thirdparty against CONSULTANT or PIONEER or to enlarge in any way the CONSULTANT'S liabilitybut is intended solely to provide for indemnification of PIONEER COMMUNITY ENERGY fromliability 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 COMMUNITY ENERGY means Pioneer Community Energy orits 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 lessthan A-:VIIshowing.

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) eachaccident 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”.
15 Waiver of Subrogation - The workers’ compensation policy shall be endorsed to state that the workers’ compensation carrier waives its right of subrogation against Pioneer, its officers, directors, officials, employees, agents or volunteers, which might arise by reason of payment under such policy in connection with performance under this Agreement by the CONSULTANT.

CONSULTANT shall require all SUBCONTRACTORS to maintain adequate Workers' Compensationinsurance. 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 thisAgreement.

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 liabilityshall 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 forbodily 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:
16 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:
→One million dollars ($1,000,000) each occurrence (combined single limit forbodily 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 thepolicy is a claims-made policy.

Conformity of Coverages - If more than one policy is used to meet the required coverages, suchas 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 followingspecific 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 namedinsured in the performance of this Agreement." B. "The insurance provided by the Consultant, including any excess liability or umbrella formcoverage, is primary coverage to Pioneer Community Energy with respect to any insurance or self-insurance programs maintained by Pioneer Community Energy and no insurance heldor 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 lessthan five hundred thousand dollars($1,000,000) combined single limit for each occurrence.

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

7. ADDITIONAL REQUIREMENTS:
17 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 requiredby this clause. All certificates and endorsements are to be received and approved by Pioneer before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONSULTANT’s obligation to provide them. Pioneer reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

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

Staff Report – Item 1d
To: The Governing Board
From: Donald Eckert, Executive Director
Item 1d: Adopt a Resolution Authorizing the Executive Director to Execute a Second Amendment to the Agreement with Richards, Watson & Gershon for Legal Services Date: 6/15/2023

RECOMMENDATION
Adopt a Resolution authorizing the Executive Director to execute a second amendment to the agreement with Richards, Watson & Gershon for legal services.

BACKGROUND
At the March 18, 2021 Governing Board meeting, the Pioneer Community Energy (“Pioneer”) Board approved Amendment No. 1 to Pioneer’s By-Laws removing the requirement the Placer County Counsel shall act as General Counsel for Pioneer. Subsequently, staff issued a Request for Proposal for legal services.

At the May 20, 2021 Governing Board meeting, the Board approved the contract with Richards, Watson & Gershon (“RWG”).

At the June 16, 2022 Governing Board meeting, the Board approved the first amendment to the agreement extending the contract term through Fiscal Year 2022-23 with the appropriate funding.

ANALYSIS & DISCUSSION
The amendment extends the contract for six additional months of legal services through the end of December 2023 for a total contract increase of $80,000. The original contract was for $160,000 with a contract term of May 2021 through June 2022. The first amendment extended the term through Fiscal Year 2022-23 for an additional $148,000. The second amendment results in a total contract value of $388,000.

All other terms of the contract and scope of services remain unchanged. Please reference attachment 3 for the original contract terms. The purpose of extending terms for six months compared to a full year is to allow staff the opportunity to revisit the scope and services over the next few months and bring a revised agreement to the Board at the end of 2023.

STRATEGIC PLAN
The recommendation supports the Operational Excellence priority.

FISCAL IMPACT
The fiscal impact of the recommendation is $80,000 and is included in the Recommended FY 2023-24 Operating Budget.

ATTACHMENTS

1. Resolution Authorizing the Executive Director to Execute a Second Amendment to the Agreement with Richards, Watson & Gershon for Legal Services

2. First amendment to the agreement between Pioneer and RWG

3. Original agreement between Pioneer and RWG
Plf)NEER

COMMUNITY ENERGY
Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held June 15, 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, Amendment No. 1 to the Pioneer Community Energy’s (“Pioneer”) By-Laws removed the requirement that the Placer County Counsel shall act as General Counsel for Pioneer Community Energy; and
WHEREAS. Richards, Watson & Gershon LLC, was selected as Pioneer’s General Counsel as a result of a Request for Proposal process; and
WHEREAS, Pioneer Community Energy and Richards Watson Gershon (“RWG”) entered a Consultant Services Agreement for general counsel services on May 20, 2021 (“Original Agreement”), wherein RWG agreed to provide general legal counsel services to Pioneer, with compensation not to exceed $160,000.00 with a contract term from June 1, 2021 to June 30, 2022; and
WHEREAS, Pioneer and RWG have amended the Original Agreement on June 28, 2022 to increase the total not-to-exceed amount to $308,000 and to extend the termination date to June 30, 2023; and
WHEREAS, Pioneer and JSR desire to further amend the Agreement to increase the total not-to-exceed amount by $80,000.00 to a total not-to-exceed amount to $388,000.00, and extend the termination date to December 31, 2023, as shown in Exhibit “A.” In the matter of: Resolution Authorizing
the Executive Director to Execute a
Second Amendment to the Agreement
with Richards, Watson & Gershon for
Legal Services
2 BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:

1. The above recitals are true and correct.

2. The Governing Board hereby approves the Second Amendment to the Consultant Services Agreement with RWG, as attached hereto as Exhibit “A,” and authorizes the Executive Director to execute the Second Amendment on behalf of Pioneer Community Energy 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.

Exhibit A: Second Amendment to Consultant Services Agreement with Richards Watson Gershon Resolution 2023-__
June 15, 2023
Administering Agency: Pioneer Community Energy
Contract Description: General Counsel Services

CONSULTANT SERVICES AGREEMENT
AMENDMENT NO. 2
THIS AGREEMENT, originally executed May 20, 2021 by and between the Pioneer Community Energy (“Pioneer”), and Richards Watson Gerson, a professional corporation (“Contractor”), is hereby amended as described below:
• Section 2 – Payment; and Exhibit B – Payment for Services Rendered:

The total amount of this contract is increased to Three Hundred Eighty-Eight Thousand dollars ($388,000), an increase of $80,000.
• Section 16 – Contract Term:

The contract term is hereby extended to terminate on December 31, 2023.

With the exception of the above, all other provisions of this contract are unchanged.

Executed as of the date indicated below:

Pioneer Community Energy:

By:_____________________________ Date: ______________
Name: Donald Eckert
Title: Executive Director
By:_____________________________ Date: ______________
Name: Inder Khalsa
Title:

Administering Agency:

Contract Description:

Pioneer Community Energy
General Counsel Services

CONSULTANT SERVICES AGREEMENT
AMENDMENT NO. 1
THIS AGREEMENT, originally executed May 20, 2021 by and between the Pioneer Community Energy ("Pioneer"), and Richards Watson Gerson, a professional corporation ("Contractor"), is hereby amended as described below:
• Section 2 - Payment; and Exhibit B - Payment for Services Rendered:

The total amount of this contract is increased to Three Hundred Eight Thousand dollars {$308,000), an increase of $148,000.
• Section 16 - Contract Term:

The contract term is hereby extended to terminate on June 30, 2023.

With the exception of the above, all other provisions of this contract are unchanged.

Executed as of the date indicated below:

Pioneer Community Energy:

ED by Donald Eckert
-06-28 15:40: 11 PDT
By: __ ;__;__;__ _____ _
Name: Donald Eckert
Title: Executive Director
By: __ _
Name: lnder Khalsa
Title: Acting General Counsel
June 28, 2022
Date:

Date:

June 28, 2022
Administering Agency:

Contract No.

Contract Description:

Pioneer Community Energy
General Connsel Services ·-------------

CONSULTANT SERVICES AGREEMENT
THIS AGREEMENT is made at Rocklin, California, as of }M.v. ·J-0 , 2021, by and between Pioneer Community Energy, ("Pioneer"), and Richards Watson Gershon! a professional corporation ("Consultant"), who agree as follows:

I. 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 amonnt of the contract shall not exceed One Hnndred and Sixty Thousand Dollars ($160,000).

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 perfonn any services within the time limits set forth in Exhibit A shall constitute material breach of this contract.

6. Independent Consnltant. 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 satisfacto1y performance of Consultant's obligations pursuant to this Agreement. Neither party shall be considered in default of this - I -
Agreement to the extent performance is prevented or delayed by any cause, present or future, which is beyond the reasonable control of the party.

9. Hold Harmless and Indemnification Agreement. At all times during the perfonnance 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. Consnltaut Not Agent. Except as Pioneer may specify in writing Consultant shall have no authority, express or implied, to act on behalf of Pioneer in any capacity whatsoever as an agent.

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

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

13. Personnel.

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

B. Notwithstanding the foregoing, if specific persons are designated as the "Project Team" in Exhibit A, Consultant agrees to perfonn the work under this agreement with those individuals identified. 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 oftennination, 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, -2-
typewriting, printing, Photostatting, photographing, and every other means ofrecording upon any tangible thing any fonn 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. This agreement shall commence on June 1 and terminate on June 30, 2022, unless terminated earlier pursuant to Section 15 of this agreement.

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~-

18. Records. Consultant shall maintain, at all times, complete detailed records with regard to work perfonned 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 oflnformation. All professional and technical information developed under this Agreement and all work sheets, reports, and related data shall become the property of Pioneer, and Consultant agrees to deliver reproducible copies of such documents to Pioneer on completion of the services hereunder. Pioneer agrees to indemnify and hold Consultant harmless from any claim arising out ofreuse of the information for other than this project.

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

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

22. Entirety of Agreement. This Agreement contains the entire agreement of Pioneer and Consultant with respect to the subject matter hereof, and no other agreement, statement, or promise made by - 3 -
any party, or to any employee, officer or agent of any party, which is not contained in this Agreement, shall be binding or valid.

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

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

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

PIONEER COMMUNITY ENERGY:

Pioneer Community Energy
Attn: Eric Acedo
2510 Warren Drive Suite B
Rocklin, CA 95677
[email protected]
Phone: 916-758-8943
CONSULTANT:

Phone: ( 415) 421-8484 _____ _
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. - 4 -
Executed as of the day first above stated:

PIONEER COMMUNITY ENERGY
Printed Name/Title: Don Eckert, Executive Director
Approved as to Form - General Counsel:

By:
,,, .

E-SIGNED by Elise Nelson
on2021c:os-14 12-53-13 PDT
Printed Name/Title: Elise Nelson, General Counsel

RICHARD WATSON GERSHON
By:

E-SIGNE:Dby Gregory W. Stepanicich May 14, 2021
on 2021 205-1411·20·18 PDT
Name: Greg Stepanicich
Title: Shareholder
By:

Name:

Title:

May 14, 2021
*if Consultant is a co1poration, this agreement must be signed by a corporate officer. either the President or Vice President, unless an authenticated co1porate resolution is attached delegating authority to a single officer or other officers to bind the c01poration.

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
- 5 -

EXHIBIT A

SCOPE OF SERVICES
As General Counsel for Pioneer, Consultant shall provide the general legal services typically required by a joint powers authority in addition to those general legal services related more specifically to the operation of a community choice aggregation program as described below. These legal services shall include the following:
~ Attendance at the monthly Pioneer Board of Directors ("Board) meetings and any special meetings, committee meetings and workshops as requested by the Executive Director or Chair of the Board.
• Brown Act, Conflict oflnterest and Public Records Act advice and representation. • Preparation or review of consultant and vendor contracts. • Advice and preparation of documents related to personnel matters. • Advice to the Executive Director and designated staff on administrative and operational matters and programs.
• Research and advice on legal questions asked by the Board, Executive Director and designated staff.
• Advice and assistance on other legal matters as may be assigned by the Board or Executive Director.

Legal services will not include matters in which Consultant has a conflict of interest the precludes the law firm from representing Pioneer. General Counsel services also will not include energy contracts or regulatory matters before the CPUC that require specialized legal services in these areas of law.

Page I of Exhibit A
to Consultant Services Agreement

EXHIBITB

PAYMENT FOR SERVICES RENDERED
Maximum Limit & Fee Schedule
The total amount for services rendered not to exceed $160,000.

And, if applicable
The maximum hourly rate shall not exceed $325 per hour for shareholders and senior attorneys and $275 per hour for associates.

Invoices
Invoices shall include a list of work performed by billable hour including date, hours and services provided.

Work performed by Consultant will be subject to final acceptance by Pioneer program manager(s).

Submit all invoices to:

Pagel of Exhibit B
Pioneer Community Energy
Attn: Eric Acedo
[email protected]
2510 Warren Drive, Suite B
Rocklin, CA 95677
to Consultant Services Agreement
Page I of Exhibit C

EXHIBITC

FACILITIES, EQUIPMENT, AND OTHER

MATERIALS, AND OBLIGATIONS OF PIONEER

NOT APPLICABLE
to Consultant Services Agreement
I.

EXHIBITD

HOLD HARMLESS AGREEMENT

AND INSURANCE REQUIREMENTS

HOLD HARMLESS AND INDEMNIFICATION AGREEMENT
The CONSULT ANT 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 patty, 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 negligence or willful misconduct of CONSULT ANT in the perfonnance of this 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 CONSULT ANT. CONSULT ANT also agrees to bear all other costs and expenses related thereto, even if the claim or claims alleged are groundless, false, or fraudulent. This provisi:m 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 arisbg from CONSULTANT'S negligence or willful misconduct in the performance of this Agreement.

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

2. INSURANCE:

CONSULTANT shall file with PIONEER concurrently herewith a Certificate of Insurance, in companies acceptable to PIONEER, with a Best's Rating ofno less than A-:VII showing.

3. WORKER'S COMPENSATION AND EMPLOYERS LIABILITY INSURANCE:

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

Employer's liability insurance shall be provided in amounts not less than one million dollars ($1,000,000) each accident for bcdily 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.

Ifthere 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 po:icy shall be endorsed with the following specific language:

Cancellation Notice - "This policy shall not be cancelled without first giving thirty (30) days prior written notice 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, Page I of Exhibit D
to Consultant Services Agreement

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

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

GENERAL LIABILITY INSURANCE:

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

B. One of the following forms is required:
(I) 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 CONSUL TANT carries a Commercial General Liability (Occurrence) policy:
(I) 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:
(I) The limits of liability shall not be less than:

to Consultant Services Agreement
One million dollars ($1,000,000) each occurrence ( combined single limit for bodily injury and property damage)
One million dollars ($1,000,000) aggregate for Products Completed Operations ➔ Two million dollars ($2,000,000) General Aggregate
(2) The insurance coverage provided by CONSULT ANT shall contain language providing coverage up to one (I) 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 perfonnance of this Agreement."
B. "The insurance provided by the Consultant, including any excess liability or umbrella form coverage, is primary coverage to Pioneer Community Energy with respect to any insurance or self-insurance programs maintained by Pioneer Community Energy and no insurance held or owned by Pioneer Community Energy shall be called upon to contribute to a loss." C. "This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy."

6. AUTOMOBILE LIABILITY INSURANCE:

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

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

ADDITIONAL REQUIREMENTS:

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

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

to Consultant Services Agreement
CONSULTANT's Obligations - CONSULTANT's indemnity and other obligations shall not be limited by the foregoing insurance requirements and shall survive the expiration of this agreement.

Verification of Coverage - 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 provided that any confidential information concerning the Consultant may be redacted from such copies of the insurance policies.

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

to Consultant Services Agreement

Staff Report – Item 1e
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1e: Approve Resolution Adjusting the Salary Schedule, Approve a Cost-of-Living Adjustment, Authorize Establishment of a Flexible Spending Account program, Approve an Additional Employer Contribution to Employee Retirement Accounts and Direct a completion of a Compensation Study every three years Date: 6/15/2023

RECOMMENDATION
Staff recommends the Board Adopt Resolution Adjusting the Salary Schedule, Approve a Cost-of-Living Adjustment, Authorize establishment of a Flexible Spending Account program, and an additional Employer Contribution to Employee Retirement accounts and direct a compensation study every three years.

BACKGROUND
Pioneer employees are not represented by a union or an employee association but instead are unrepresented.

In the past, the Executive Director and/or the Director of Finance and Administration have brought recommendations for salary adjustments and benefits for Board discussion. This year the Board created an ad hoc Employee Health and Welfare committee consisting of Board members to review the employee salary and benefit package and possible adjustments and benefit enhancements. The committee met on May 1st, 2023, and May 24, 2023, and discussed the salary and benefit package with the full Board at the closed session on June 15, 2023.

ANALYSIS & DISCUSSION
Salary Ranges: A 3% adjustment to the salary schedule is recommended. Pioneer’s salary schedule is structured as a salary range rather than a salary step system. This means that even when the salary schedule is adjusted upward an employee will only advance in the range contingent on the employee receiving a satisfactory annual evaluation. A compensation study was performed Spring 2022 by one of Pioneer’s Human Resources consultants that compared salary and benefits provided by municipal utilities and other Community Choice Aggregators.

The Board approved the study’s recommended salary adjustments but deferred action for the Director of Finance and Administration, Director of Public Affairs, Marketing and Programs and the Executive Director positions.

Those position salary range recommendations have been incorporated into the updated salary schedule.

Cost of Living Adjustment: A 1% Cost of Living increase to the current salary of all employees ($30,000). This change does not adjust the Salary Range adjustment discussed in the prior paragraph.

Flexible Spending Account: This would be a new benefit program available to employees and it would be solely funded by employee contributions with the administrative costs (FY23-24 $700 and FY24-25 $900) paid by Pioneer. The offering would include Health and Dependent Care options and the implementation date would be January 2024 to align with the health coverage year.

Retirement Benefits Enhancement: Unlike many California governments, Pioneer does not offer a defined retirement benefit plan, such as CalPERS or SCERS. However, Pioneer does provide a 401a compensation plan that is aligned with IRS contribution limits for a 457b plan. The current contribution is $22,500 for management staff and $13,950 for all other employees. This retirement benefit enhancement would provide an additional employer contribution. The contribution would be 3% of an employee’s salary ($91 thousand).

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 1e Agenda Date: 6/15/2023

Summary: The overall goal of these changes is to maintain Pioneer’s competitiveness to attract qualified job candidates and retain our employees. With these proposed changes, labor costs will account for approximately 2% of the overall expense budget.

STRATEGIC PLAN
The recommended salary schedule and benefit changes supports Strategic Priority 3 of the 2021-2024 Strategic Plan which is to be an Employer of Choice.

FISCAL IMPACT
The Cost-of-Living Adjustment and benefit enhancements are expected to cost approximately $120 thousand.

ATTACHMENTS

1. Resolution Approve an Adjusted Salary Schedule, Approve a Cost-of-Living Adjustment, Authorize offering Employee Flexible Spending Accounts, Approve an additional Employer Contribution to employee retirement accounts, and perform a compensation study every three years.

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 June 15, 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, the Governing Board of Pioneer Community Energy (“Pioneer”) adopted the 2021- 2024 Strategic Plan that includes Priority 3 in which Pioneer is to be an Employer of Choice; and
WHEREAS, the Employee Welfare and Benefits ad hoc committee reviewed and provided input on employee salary and benefit packages, adjustments, and additions; and WHEREAS, employees only move up on the salary schedule with a satisfactory annual evaluation unless the Board directs a Cost of Living adjustment; and WHEREAS, the United States Bureau of Labor Statistics consumer price index for all items in San Francisco-Oakland-Hayward from February 2022 to February 2023 demonstrates a 8.7% change in consumer prices; and
WHEREAS, the Employee Health and Welfare ad hoc committees recommended a 3% increase to the salary schedule; and
WHEREAS, a compensation study was performed Spring 2022 by Pioneer’s Human Resources consultant that compared salary and benefits provided by municipal utilities and other Community Choice Aggregators; and
WHEREAS, the Employee Health and Welfare ad hoc committee recommends Salary Schedule adjustments that were recommended by the compensation study for the Director of Finance and Administration (9.4%), Director of Public Affairs, Marketing and Programs (9.4%) and the Executive Director (7.9%) positions; and
In the matter of: Adopt Resolution to Approve an
Adjusted Salary Schedule, Approve a Cost-of-Living Adjustment, Authorize Establishment of a Flexible Spending Account program, Approve an
additional Employer Contribution to Employee
Retirement accounts, and direct a compensation
study every three years.

Resolution 2023-__
June 15, 2023
2 WHEREAS, the Employee Health and Welfare ad hoc committee recommends a Cost-of-Living salary adjustment that will increase employee current salaries by 1%; and WHEREAS, an employee Flexible Spending Account is fully funded by the employee and provides a tax free mechanism to pay health and dependent care expenses; and WHEREAS, Pioneer’s administrative costs to provide the Flexible Spending Account benefit is estimated to be $700 in fiscal year 2023-24; and
WHEREAS, the Employee Health and Welfare ad hoc committee recommends a 3% employer contribution to each employee retirement account as a retirement benefit enhancement; and WHEREAS, a biennial compensation and benefits study is a component of the Strategic Plan and the Employee Health and Welfare ad hoc committee recommend a triannual compensation and benefits study.

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 Salary Schedule will be increased by 9.4% for the Director of Finance and Administration and the Director of Public Affairs, Marketing and Programs; 7.9% for the Executive Director and 3% for all other positions as shown in Attachment A and effective July 1, 2023.

3. All employees will receive a Cost-of-Living Salary adjustment of 1% of their salary effective July 3, 2023, the beginning of the first full pay period of Fiscal Year 2023-24.

4. Authorize establishment of a voluntary employee funded Flexible Spending Account program for health and dependent care expenses to be available to employees in calendar year 2024.

5. Approve a retirement benefit enhancement for all employees by providing an employer contribution of 3% of employees base salary (excludes stipends such as auto allowances, health in lieu etc.) paid bi-weekly to each employee’s retirement account, effective July 3, 2023, the beginning of the first full pay period of Fiscal Year 2023-24.

6. Conduct a triannual compensation and benefits study, with the next study to be in 2025.

7. This resolution shall take effect immediately.

Attachment A: Salary Schedule
Class/Position Title Minimum Maximum Minimum Maximum
Administrative Assistant $50,138 $74,957 $51,642 $77,206 Account Representative I $76,275 $114,032 $78,563 $117,453 Account Representative II $83,903 $125,434 $86,420 $129,197 Board Clerk/Executive Assistant $73,182 $109,407 $75,377 $112,689 Chief Operating Officer $199,593 $298,392 $205,581 $307,344 Commercial Coordinator $86,547 $129,386 $89,143 $133,267 Community Outreach Manager $117,389 $175,495 $120,911 $180,760 Customer Care Coordinator $86,547 $129,386 $89,143 $133,267 Customer Care Manager $106,063 $158,564 $109,245 $163,321 Director of Finance and Administration * $150,919 $225,623 $165,126 $246,852 Director of Public Affairs, Marketing and Programs * $150,919 $225,623 $165,126 $246,852 Executive Director + $221,770 $331,548 $239,314 $357,773 Financial and Administrative Analyst I $70,372 $105,205 $72,483 $108,361 Financial and Administrative Analyst II $77,409 $115,726 $79,731 $119,197 Internal Operations Coordinator $99,529 $148,794 $102,515 $153,258 Key Accounts Manager $106,063 $158,564 $109,245 $163,321 Legislative and Regulatory Analyst I $88,978 $133,023 $91,647 $137,014 Legislative and Regulatory Analyst II $97,876 $146,325 $100,812 $150,715 Legislative and Regulatory Manager $117,389 $175,495 $120,910 $180,760 Management Analyst $88,978 $133,023 $91,647 $137,014
Power Resources Manager $112,557 $168,274 $115,934 $173,322 Power Resources Analyst I $88,458 $132,245 $91,112 $136,212 Power Supply Contract Manager $112,557 $168,274 $115,934 $173,322 Program Manager $99,529 $148,794 $102,515 $153,258
Program Specialist I $90,479 $135,268 $93,194 $139,326
Residential Coordinator $86,547 $129,386 $89,143 $133,267 Senior Commercial Coordinator $99,529 $148,794 $102,515 $153,258 Senior Financial Analyst $98,350 $147,027 $101,300 $151,438 Senior Manager, Quantitative Analysis and Modeling $123,813 $185,101 $127,527 $190,654 Senior Residential Coordinator $99,529 $148,794 $102,515 $153,258 * Salary Schedule adjusted 9.4% as recommended by the Spring 2022 Compensation Study + Salary Schedule adjusted 7.9% as recommended by the Spring 2022 Compensation Study Attachment A
SALARY SCHEDULE FISCAL YEAR 2023-24
Compensation Study Proposed Adjustment
Approved FY 22-23 Salary Schedule and 3% Salary Adjustment-Effective July 1, 2023

Staff Report – Item 2
To: The Governing Board
From: Donald Eckert, Executive Director
Item 2: Adopt Resolution Commending Director Heathcock for His Dedicated Service to Pioneer Community Energy
Date: 6/15/2023

RECOMMENDATION
Adopt Resolution commending Director Heathcock for his dedication and outstanding service in directing Pioneer Community Energy (“Pioneer”).

BACKGROUND
As City Manager of the City of Colfax, Director Heathcock was appointed to the Board in June 2021 and continued to serve through May 2023. Director Heathcock also served on the Audit & Finance Committee as of February 2023.

ANALYSIS & DISCUSSION
Director Heathcock has demonstrated outstanding commitment, representation, and leadership for Pioneer and its ratepayers.

STRATEGIC PLAN
The recommendation supports the Local Engagement Priority.

FISCAL IMPACT
There is no fiscal impact with the recommendation.

ATTACHMENTS

1. Resolution commending Director Heathcock for his dedicated service to Pioneer Community Energy.

Plf)NEER

COMMUNITY ENERGY
Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held June 15, 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, Pioneer Community Energy is a Community Choice Aggregation Program serving the cities of Auburn, Colfax, Lincoln, Rocklin, and Placerville, the town of Loomis, and unincorporated Placer and El Dorado County; and
WHEREAS, City of Colfax appointed Wes Heathcock as Director to the Pioneer Community Energy Governing Board beginning June 2021; and
WHEREAS, Wes Heathcock has served on the Pioneer Community Energy Audit & Finance Committee beginning February 2023; and
WHEREAS, Wes Heathcock has provided outstanding leadership, representation, and guidance for the ratepayers and staff of Pioneer Community Energy.

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

1. The above recitals are true and correct.

2. The Governing Board hereby commends Wes Heathcock for his dedication and outstanding public service in directing Pioneer Community Energy.

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

In the matter of: RESOLUTION IN APPRECIATION

OF DIRECTOR HEATHCOCK FOR OUTSTANDING

SERVICE TO PIONEER COMMUNITY ENERGY

Staff Report – Item 3
To: The Governing Board
From: Donald Eckert, Executive Director
Item 3: Update on Public Outreach and Marketing Activities and Provide Direction to Staff on Outreach Efforts for the remainder of 2023.

Date: 6/15/2023

ACTION REQUIRED
Provide direction on funding for public outreach and marketing activities for the remainder of 2023.

RECOMMENDATION
There is no recommendation in this report.

BACKGROUND
High level communication goals for 2023 include:
• Increase community understanding of the benefits of Pioneer Community Energy (“Pioneer”) and Community Choice Aggregators (“CCAs”).
• Build community trust and two-way conversations.
• Launch a successful campaign into Grass Valley and Nevada City. • Reach Pioneer’s participation rate goal of 92%.

Pioneer has a participation rate in the mid-eighty% range, which is good but below our target of 92%. The participation rate varies amongst our members. To achieve a 90% participation rate, staff would need to re-enroll approximately 8,000 accounts that were opted out. The discussion will be focused on the residential customers. Pioneer has a greater than 92% participation rate with Commercial and Industrial customers.

Entering 2023, the expansion into El Dorado County and City of Placerville was a year old and the Board placed Pioneer in a very favorable rate competitive position compared to Pacific Gas & Electric’s generation rate with a rates adjustment in December 2022.

Over the past six months, Pioneer has utilized a two-front approach to increase the participation rate with increased funding of paid media outreach and at the same time staff increasing our presence in the community.

After six months into the campaign, the results are mixed. Pioneer has achieved a much greater awareness and trust in the community, but it has not impacted on the participation rate.

ANALYSIS & DISCUSSION
Major marketing efforts year-to-date include:
• Out of Home (“OOH”) Ads focused on El Dorado County: supporting 4.4 million impressions. Includes bus stop advertising at high traffic areas.
• Radio Ads and Sponsorships: supporting 5.6 million impressions. Includes IHeart Radio and Capital Public Radio.
• Newsprint Ads: supporting two million impressions. Includes Mountain Democrat and Gold Country Media.
• Social Media/Google Ads: supporting seven million impressions. • Local Testimonials and Videos from our customers advocating Pioneer. This is the recent launch to our website.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 3 Agenda Date: 6/15/2023

• Community presence includes various Senior Centers, Home Show, Chamber events, etc.

Successes from these efforts include:
• Significant increase in website visitors. There has also been a healthy engagement with the launch of ChatBot in May and more of our ratepayers are referencing the website for answers to their energy questions.
• Shift with current customers from neutral to satisfied with Pioneer. • A growing number of champions in our rate base defend Pioneer on social media and recommend Pioneer to friends and colleagues.

Options to Consider
Paid Media Options include:

1. Slow-Down: Budget of $275,000. Reduction of media spend across all channels. Digital outreach can be targeted to specific communities.

2. Remain Steady: Budget of $375,000. Estimated thirty-four million impressions. Assumes continuation of Pioneer’s annual spend at the pace of the first half of 2023.

3. Increase Exposure: Budget of $530,050. Estimated fifty-four million impressions. Adds funds for Grass Valley and Nevada City. Slightly increases radio and newsprint, incorporates a billboard on Hwy 49 and OOH across El Dorado County.

4. Reach All Households: Budget of $696,000. Estimate eighty million impressions. Adds funds for a year of TV programming through KCRA, including Wildfire and Weather sponsorship and a Story Studio Package.

Staffing – Consider adding Community Outreach Specialist positions located in each County Pioneer serves that are focused on having a physical presence at point of contact for each County.

STRATEGIC PLAN
The report supports the Local Engagement priority.

FISCAL IMPACT
There is no fiscal impact with the report. However, once the Board provides direction on marketing options, the fiscal impact will be quantified through a new agreement with JSR and brought to the Board for approval at July’s Board meeting.

ATTACHMENTS
There are no attachments to the report.

Staff Report – Item 4
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 4: Adopt Resolution Approving Fiscal Year 2023-24 Budget Date: 6/15/2023

RECOMMENDATION
Staff recommends the Board receive a presentation on the Recommended Fiscal Year 2023-24 Budget and Adopt Resolution Approving Fiscal Year 2023-24 Budget.

AUDIT & FINANCE COMMITTEE REVIEW
An overview of the Proposed Fiscal Year 2023-24 Budget was presented, and input was received from the Audit & Finance Committee that met on May 22, 2023.

EMPLOYEE BENEFIT AND WELFARE AD HOC COMMITTEE REVIEW
The Employee Benefit and Welfare Ad Hoc Committee met May 1, 2023, and May 24, 2023 and reviewed the employee benefit package. The Committee recommendations are a separate agenda item for Board consideration.

BACKGROUND
The Board met on May 25, 2023, and received a presentation on the proposed budget. The Board provided input and direction that were incorporated in the Recommended Budget. The Fiscal Year 2023-24 Budget is effective July 1, 2023.

Modifications in the Recommended Budget
The recommended Budget has been modified from the proposed budget in several areas, those include:
• Power Supply was modified to recognize the higher NEM payouts that were realized in Fiscal Year 2022-23 and refined the discount expected from the prepay bond activity. (An overall net $270 thousand decrease.)
• Compensation was modified in response from input from the Employee Benefit and Welfare Ad Hoc Committee. (A $121 thousand decrease.)
• Program Division Budget was the most impactful with a new recommendation of $2 million rather than the $4 million in the proposed budget. (A $2 million decrease.) • These modifications flow to the anticipated contribution to reserves which increased almost $2.4 million to $26.6 million anticipated contribution.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 4 Agenda Date: 6/15/2023

ANALYSIS & DISCUSSION
The Recommended 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 $202.05 million resulting in a projected contribution to reserves of $26.6 million. The table below summarizes the proposed budget at a high-level:

FY 2022-23 FY 2023-24 Variance
$ in Millions Midyear
Budget
Recommended
Budget $ %
Revenues $213.43 $228.67 $15.24 7.1%
Power Supply $177.98 $183.91 $5.93 3.3%
Contribution Margin $35.44 $44.75 $9.31 26.3%
Operating Expenses $11.03 $14.37 $3.34 30.3%
Operating Margin $24.41 $30.38 $5.97 24.5%
Non-Operating Net Expenses $3.66 $3.76 $0.10 2.7%
Contribution To Reserves $20.75 $26.62 $5.87 28.3%
Significant drivers impacting both revenues and expenses include:

1. The Recommended Budget includes Program Division funding of $2 million with $1.7 million for the initiation of Programs that would fund residential programs such as electric vehicles and chargers, HVAC tune-up, LED lighting, whole house fans and window retrofits. Along with a 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.

Agenda Item: 4 Agenda Date: 6/15/2023

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

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:

Revenue: $228.7 million
Expenses: $202 million
Other Operating
Expenses
7%
Agenda Item: 4 Agenda Date: 6/15/2023

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 $2 million with $1.7 million for the initiation of Programs that would fund residential programs such as electric vehicles and chargers, HVAC tune-up, LED lighting, whole house fans and window retrofits. Along with a partnership program with area 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.

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

Ctief" Ope-ating
Office!'
Sr. Manager, Quant
.Analyss
& Modeling
PolM!I'" Resources
Manage!"
Power-S14Jply
Cortracts Manager
Board Clerk/
Executive Assistant
► 18 Full-time Positions
, 1 Added Position
► 1 Part-time Position
CClrfTIUljf¥ Outreach
Manager
lnte-n (Part-time)
Director af Finance&
Actriristration
Director af Public
Affairs, Mar1reti ng &
Programs
lrtet'nal Opel'ations
Coonimrtor
Senior Financial
Jlnalr.!t
Financial &
Amiristrative
.Analyst I
Key Accolllls
Manage!"/ Program
Manage!"
Agenda Item: 4 Agenda Date: 6/15/2023

Sr. Ma mger,
Quant. Amlys1s
& Mcdehng
Power
Resaurces
Manage'"
Power Supply
Cortracts
Manager
Scheduing
Coordinator
Power
ProcureffElll
Consulting
CRR Broler State Lobbyist
Board Clerk/
Executive
ASc!istart.

CClffTIUmy
Oweach
Manager
Intern
(Part-tirre)
Director of
Finance&
Adrrinislnt.ion
Human
Resources
(Employee
Rel:at1ons)
Humm
Resources
(Recruilmert)
IT Auditor
Controller
Serior
Financial
Analyst
Financial &
Am'irislrative
Analyst I
Financial
.Advisor
lrforrmtion
Technology
Services
Custodial
Services
► 18 Full-time Positions
► 1 Added Position
► 1 Part-time Position
► Key Co1 su ltant Serv·ces
KeyAccomts
Manager
Key Accounts
Mamger/
Program M amger
Customer Care I Manager
Marketing
Services
Customer Call
Center
Agenda Item: 4 Agenda Date: 6/15/2023

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: 4 Agenda Date: 6/15/2023

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 $861 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 128 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
178 Days
$100,000
145 Days
160 Days (Target) 146 Days
$80,000 Extreme
{l Weather
C: 110 Days Extreme Event cu
Cl) $60,000 Avoided ::J Weather 0 Event f:.
,5: Avoided
~ $40,000
87 Days
$20,000
$0
FY22 FY23 FY24 FY25
Agenda Item: 4 Agenda Date: 6/15/2023

mPOWER
mPOWER was closed to new applications on August 31, 2021. Placer County administers the mPOWER program on behalf of Pioneer, and County staff worked with Pioneer 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 is included in the Recommended Budget.

FISCAL IMPACT
The Proposed FY 2023-24 Budget includes total revenues of $228.7 million and total expenses of $202 million resulting in a projected contribution to reserves of $26.6 million.

ATTACHMENTS

1. Resolution Adopting Fiscal Year 2023-24 Budget
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 June 15, 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, the Executive Director has submitted the Fiscal Year 2023-24 Budget to the Board for consideration and comment; and
WHEREAS, the 2021-2024 Strategic Plan informed the Budget development; and WHEREAS, the Budget has been considered and comments were received from the Audit and Finance Committee on May 22, 2023; and
WHEREAS, the Budget has been considered and comments received from the Board at the May 25, 2023 Board meeting; and
WHEREAS, future power purchase costs, energy sales are uncertain; and weather-driven impacts, economic conditions, changes in wholesale energy market prices, changes in customer usage patterns are difficult to forecast and will impact actual revenues and expense; and
WHEREAS, the Board considers the Budget a ‘living’ document and will be informed by, actual usage, the closing of Energy Open Positions, and a mid-year Budget review; and In the matter of: Adoption of Fiscal Year 2023-24
Operating Budget
Resolution 2023-__
June 15, 2023
2 BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:

1. The above recitals are true and correct.

2. The Governing Board hereby approves and adopts the Pioneer Community Energy Fiscal Year 2023-24 Budget as presented in Attachment A.

3. The Executive Director is authorized to move budget authority between divisions and accounts, but not to increase or exceed the Board authorized total Budget.

4. The Executive Director is authorized to have flexibility to hire positions not originally anticipated in the Budget as long as the authorized positions of 18 is not exceeded and salary and benefit actuals do not exceed the salary and benefit Budget.

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

Exhibit A: Fiscal Year 2023-24 Budget

Staff Report – Item IV-B
To: The Governing Board
From: Donald Eckert, Executive Director
Item IV-B: Executive Director Report
Date: 6/15/2023

PERSONNEL
Our Community Outreach Manager will start on June 19th and will be introduced to the Board at the July meeting.

The Fiscal Year 2023/24 Operating budget supports $2 million of program funding. Once the budget is approved, the Board will be apprised of organizational changes to support Programs.

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

1. Zaiso Enterprises, support of records management, not-to-exceed amount of $11,040, through June 1, 2024.

2. API-Marketing, printing services to support rebranding efforts, not-to-exceed amount of $2,453.

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

EXPANSION
The following are recent developments in expansion opportunities:

1. Nevada County – Staff engaged in a kick-off meeting to discuss Pioneer with staff from Nevada County.

Both the County and Pioneer are aiming for a 2025 start date for service. The County also authorized their share of funding for an impact assessment study. The results of the study will be shared with the Board in September and upon approval of the Board, the expansion process will begin.

2. Tuolumne County – Staff participated in a meeting with Supervisor Brandon and County staff regarding joining Pioneer. The meeting was very positive. The County also would aim for a 2025 start date for service. Next step is for authorization of funding for their share of the impact assessment study.

Counterparty Name
Execution
Date Type Product Start Date End Date
Notional
Value
California Choice Energy Authority 5/15/2023 Buy Resource Adequacy - System 8/1/2023 8/31/2023 $605,000 California Choice Energy Authority 5/15/2023 Sell Resource Adequac - Local 9/1/2023 9/30/2023 ($1,056,000) Central Coast Community Energy 5/3/2023 Sell Resource Adequacy - System 7/1/2023 7/31/2023 ($210,000) Harper Solar, LLC 5/16/2023 Buy Renewable Energy 12/31/2024 12/31/2044 $13,477,149 Harper Solar, LLC 5/12/2023 Buy Resource Adequacy - System 12/31/2024 12/31/2044 $12,000,000 Lockhart Solar, LLC 5/12/2023 Buy Resource Adequacy - System 12/31/2024 12/31/2044 $12,000,000 Lockhart Solar, LLC 5/12/2023 Buy Renewable Energy 12/31/2024 12/31/2045 $13,477,149 Direct Energy Business Marketing, LLC 5/12/2023 Buy Resource Adequacy - System 7/1/2023 6/30/2033 $43,452,000 Direct Energy Business Marketing, LLC 5/12/2023 Sell Resource Adequacy - System 7/1/2023 12/31/2026 ($12,600,000) Plf)NEER

COMMUNITY ENERGY
Agenda Item: IV-B Agenda Date: 6/15/2023

EL DORADO FAIR
Pioneer will be present with a booth at the El Dorado County Fair from June 15-18.

Following the El Dorado County Fair, staff are planning for the Nevada County Fair in August followed by the Loomis Eggplant Festival in October and the Mandarin Festival in November.

BIOMASS PLANT TOUR
Pioneer is in the process of trying to set up a biomass tour either August 29th or August 30th at the Sierra Pacific Industries sawmill/biomass plant in Lincoln. The focus will be inviting our Legislative delegation as well as members of the Assembly and Senate Utilities Committee. The tour will likely start in the morning and conclude with lunch so that Legislators can head back to Sacramento around 1pm.

Once the schedule is finalized and certainty about which legislators will be attending, staff will ask the Board of interest to attend.

BIOMASS DEVELOPMENT UPDATE
Pioneer is working with Wisewood Energy and Western Placer Waste Management Authority (WPWMA) to develop a 3MW biomass combined heat-and-power (CHP) facility on a 5-acre site at WPWMA’s Eastern Property.

The project represents a collaboration to foster innovation and economic growth, reduce wildfire risk, enhance waste reduction, and invest in energy resilience in Placer County.

The system is estimated to use approximately 26,000 bone dry tons (BDT) of woody material per year, creating a dedicated outlet for 100% of the wood waste received and processed at WPWMA (estimated to be approximately 18,000 BDT/yr.), in addition to supplemental material sourced from fire mitigation activities in the surrounding area. Approximately 23,500 MWh per year will be sold to Pioneer under a long-term power purchase agreement, and waste thermal energy generated by the system will be made available to offset natural gas usage expected at the new neighboring 393-acre Buzz Oates Placer Commerce Center development.

Wisewood and Pioneer have signed an MOU with intent to execute a PPA, conceptual plant design and modeling has been completed, and a pre-application interconnection study has been completed. Wisewood is now working to advance a site lease with WPWMA, retain electrical engineering, submit an interconnection study, and secure project financing.

SB1383 SOLUTION UPDATE
Staff notified primary Board Members and appropriate staff of the revised contract template to use for negotiating with Desert View Power, LLC (Greenleaf Power) should the Member Agency decide to purchase SB 1383 procurement compliance attributes from them. The changes reflect notification and cure provisions related to notifications of violations from any regulatory authority such as the Environmental Protection Agency and extends the date of calculating volumes enrolled for discounted pricing purposes from June 30 till July 31, 2023. The following is a summary of the key updates from the previous contract template:
• Greenleaf now also represents and warrants that it has not received any notices of violation relating to the biomass facility, other than the disclosed notice of violation from EPA received on June 13, 2022. • Going forward, if Greenleaf receives a notice of violation (“N.O.V.”) from a Governmental Authority after the effective date of the agreement, Greenleaf must give notice of that N.O.V. to the buyers. Failure to provide such notice, after an opportunity to cure, is an event of default. • Going forward, if Greenleaf receives a written determination from a governmental authority that Greenleaf is not in material compliance with material terms of any agreed upon mitigation, settlement, restitution, or other requirements to remedy a N.O.V., Greenleaf must provide notice of that determination to the buyers. Failure to remedy the material non-compliance within 20 days of receipt of the written determination is an event of default.
• Greenleaf will also disclose as part of its annual reporting under the agreement whether it received in the reporting year any N.O.V.s or written determinations of material non-compliance with agreed upon terms.

Agenda Item: IV-B Agenda Date: 6/15/2023

• Finally, given the delay in finalizing the agreement, the PCA purchase prices shown in the schedules to the agreement will be based on the total volume signed up by July 31, 2023.

Our next presentation on this solution is with the El Dorado County Board of Supervisors on June 20th. As always, please reach out to staff with further questions.

PRESENTATIONS and RELEVANT MEETING ATTENDED by the EXECUTIVE DIRECTOR

1. Participated in CalCCA Weekly/Monthly Executive Committee/Board meetings. Also attended and was a speaker at CalCCA’s annual conference in San Diego.

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

3. Participated in a discussion with Supervisor Brandon and County staff from Tuolumne County regarding joining Pioneer.

4. Participated in a kick-off meeting with Nevada County staff on joining Pioneer.

ATTACHMENTS

1. Agenda Planning Document

2. Monthly Legislative and Regulatory Report

3. Monthly Public Outreach Report
Agenda Planning Document – Pioneer Community Energy Updated 6/9/2023 C:\Users\TeresaWillock\Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates

BOARD OF

DIRECTORS
JUNE 15, 2023
3:00 PM
(Post Agenda: June 9)
JULY 20, 2023
3:00 PM
(Post Agenda: July 14)
SEPTEMBER 21, 2023
3:00 PM
(Post Agenda: September 15)

IN THE FUTURE
(SEPT) Special Meeting- CAISO facility tour
Closed Session
2:30 PM
Conference with Labor Negotiators
pursuant to GC §54957.6
General Function I Agenda Review Agenda Review Agenda Review Consent
1a
Minutes for Approval
MAY 25 and JUNE 1, 2023
Minutes for Approval
JUNE 15, 2023
Minutes for Approval
JULY 20, 2023
1b Receive Draft Financials: APR 2023
(Koehn)
Receive Draft Financials: MAY 2023
(Koehn)
Receive Draft Financials: JUNE 2023
(Koehn)
1c + Contract renewals (Koehn) JSR contract (Action-Eckert) Joint Rate Mailer (JRM) information
(Eckert)
Regular
2 Recognition of Director Heathcock
(Action-Eckert) Heathcock
Budget Adjustment (Koehn) New Proposed Rates: RES-BCT; Green75 3 Overview of Public Outreach
(Discussion-Eckert) JSR
Update on Prepay Transaction
(Discussion-Eckert)
Contract Renewal -Calpine Data Mgmt
4 RES approving Recommended FY 23-
24 Budget (Action-Koehn)
Appoint Member to A&F Committee
vacancy (Action-Eckert)
(SEP) Power Content Label
5 RES approving EE Health & Welfare
Benefits (Action-Koehn)
Outreach Plans for Nevada City/Grass
Valley (Discussion-Eckert)
(SEP) 2023 Legislative Session in Review
6 (SEP) Expansion of Service Territory
Update
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;
Overview on WPWMA;
Executive Director’s Report
Reports: Leg/Reg; Community Engagement;
Quarterly Strategic Plan update;
Executive Director’s Report
Reports: Leg/Reg; Community Engagement;
Quarterly Strategic Plan update;
Executive Director Report - Quarterly
Update re: Strategic Plan objectives
JAN – APR – JULY - OCT
IV-C Informational Items
Glossary of Terms
Informational Items
Glossary of Terms
Informational Items
Glossary of Terms
•
J
Agenda Planning Document – Pioneer Community Energy Updated 6/9/2023 C:\Users\TeresaWillock\Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates

AUDIT/FINANCE COMMITTEE TBD - SEPTEMBER DATE IN THE FUTURE Greg Janda, Chair
Holly Andreatta
John Hidahl
vacancy

ENERGY PROCUREMENT REVIEW

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

EXPANSION

AD HOC COMMITTEE TBD - SEPTEMBER 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
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Pioneer Community Energy Legislative and Regulatory Update June 15, 2023
Legislative Affairs
California Legislature and Capitol Update:

The 2023 California State Legislative process is proceeding with bill hearings and negotiations ongoing.

The Legislature recently had two significant calendar deadlines. May 19, 2023, marked the last day for fiscal committees to hear and report to the Floor bills that were introduced in their house. June 2, 2023, marked the last day for each house to pass bills introduced in that house.

Listed below are Pioneer's bills of interest and their current statuses. 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 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.
• The bill was held in Assembly Appropriations.
• 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. 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update Plf)NEER

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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.
• Senate Rules.
• 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.
• Senate Governance and Finance Committee.
• AB 704 {Jim 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.
• Held under submission.
• 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. • Senate Rules Committee.
• AB 1533 {Committee on Utilities and Energy): Oppose Unless Amended
• This bill would exclude any energy, capacity, or attribute from the Diablo Canyon Power Plant after August 26, 2025, towards meeting the state's goals for renewable energy resources and zero-carbon 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update PICt)NEER

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resources supplying the retail sales of electricity to California end-use customers.
• Removing resource adequacy attributes reduced energy reliability and increases energy costs for all ratepayers. Customers are already paying to support the extension of the Diablo Canyon Power Plant and should therefore benefit from those costs. Removing the resource adequacy attributes from the power plant will simply result in customers needing to pay for additional resource adequacy resources needed to make up for this removal and forces customers to pay twice for the same benefit. Alternatively, retaining Diablo Canyon as a resource adequacy-eligible resource could improve the supply/demand balance for 2025-26.
• Senate Rules Committee.
• 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. • Assembly Utilities and Energy.
• 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 who will participate via teleconference and prohibits a member from participating remotely pursuant to these provisions unless the remote location is the 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update Plf)NEER

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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 Judiciary Committee.

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 Resource Adequacy (RA) Extension Order benefits from Diablo
Instituting Rulemaking Canyon should be
(OIR) allocated to all
jurisdictional LSEs and
GHG-free attributes
should be allocated to all
LSEs on a voluntary
basis
R.22-10-010 Order Instituting Expeditiously implement
Rulemaking (O_IR) to AB 843 to allow CCA
Implement AB 843 access to the BioMAT
(2022) - The Bioenergy program for future
Adjusting Tariff Program subsidies for biomass
procurement
A.20-02-009; A.21-03- PG&E 2019 Energy Reduce the ERRA impact 008; A.21-06-001; Resource Recovery on the PCIA; increase A.22-05-029 Account (ERRA) data transparency from
Compliance Application; the IOUs
PG&E 2020 ERRA
Compliance Application;
2021 ERRA Compliance
Application; 2022 ERRA
Compliance Application;
2023 ERRA Compliance
Application
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update PICf)NEER

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Application
R.20-08-020 Rulemaking to develop a Mitigate impacts to successor to existing Net Pioneer NEM customers
Energy Metering (NEM)
tariffs and to review and
refine existing NEM
tariffs
R.21-03-011 Provider of Last Resort Pioneer is working to (POLR) Order Instituting manage how this
Rulemaking (OIR) Proceeding will affect its
Financial Security
Requirement (FSR) and
to keep the FSR at the
minimum of $147,000
R.17-06-026 Power Charge Reduce the PCIA and
Indifference Adjustment rate volatility for CCA
(PCIA) customers; increase
data transparency from
the IOUs
R.17-09-020; R.19-11- Resource Adequacy (RA) Refine the current RA 009; R.21-10-002 Reform & Program construct;
. Implementation Tracks reduce volatility of RA
prices; increase RA
procurement availability
and grid reliability
R.18-12-005 Utility De-energization, Reduce impacts of PSPS Public Safety Power and EPSS events;
Shutoffs (PSPS), and increase coordination
Enhanced Powerline and communications
Safety Settings (EPSS) with IOUs to ensure
public safety during de-energization; limit PSPS
and EPSS impacts on
CCA load scheduling
CEC - OIR - 21-OIR-03, Load Management Pioneer is working to 23-LMS-01 Standards (LMS) extend the date of the
required rate upload and
make requirements
manageable for CCAs
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update Plf)NEEA

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• 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 Ql 2023 and a Proposed Decision (PD) in Q3 2023. Pioneer and CalCCA pushed 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 may revise the BioMAT program in Rulemaking 18-07-003 or its successor proceeding.
• The ALJ issued 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 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update Plf)NEER

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terms and conditions, tariffs, program queue coordination, cost recovery, contract management, and oversight. Energy Division, CalCCA, CCA representatives, and the IOUs discussed
implementation of CCAs into the existing BioMAT program.

A Ruling was issued on May 5, 2023 by the ALJ in the BioMAT proceeding. The ruling invites comments on various questions and a potential framework for CCA involvement in the BioMAT contracting process. Responses to the questions in the Ruling will guide how the CPUC frames the process. There appears to be enough in the Ruling to develop a CalCCA proposal/response.

Comments on the Ruling are due on June 15, 2023 and Replies are due on June 29, 2023. 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 BioMAT program sunset date as recommended by the CPUC.
• 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 Billing 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 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update Plf)NEER

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March 21, 2023, and Replies were filed on April 4, 2023; many stakeholders filed Comments.
• On April 3, 2023, an AU 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 the IOUs' advice letters establishing Net Billing tariffs were due. • NBT went into effect on April 15, 2023, but implementation is contingent upon the IOUs' ability to get billing systems in place. • Environmental groups filed a petition with the California Court of Appeal 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.
• On May 5, 2023 an AU Ruling invited comments on potential modifications to solar on the multifamily affordable housing program. June 2 and June 16, 2023, Opening and Reply Comments are due on AU Ruling. A Working Group Meeting was held on May 30, 2023.
• PG&E ERRA Compliance and ERRA Forecast:
• 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-a-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 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update Plf)NEER

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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 recommended: 1) the Commission should adopt the PD's exclusion of unrealized wholesale generation revenues as the PD correctly found that it would be overly punitive to include this category of revenues whose calculation is highly speculative, overly complicated, and prone to error; 2) the CCA Parties' Opening Comments merely relitigate past issues already adjudicated by the PD rather than demonstrating factual or legal error committed by the PD. The Utility Reform Network's (TURN) Reply Comments argue that the Commission should reject another attempt by the IOUs to reduce shareholder funding of _under collected balances caused by PSPS events. The PD further states that the IOUs shall forgo collection in rates from customers of all authorized revenue requirement equal to estimated unrealized volumetric sales and unrealized revenue resulting from PSPS events. The PD has already carefully considered the parties' positions regarding which rate components should be included in the calculation of the unrealized '
revenues, and TURN believes that the PD establishes a fair and reasonable set of criteria. Adopting the IOUS' position would result in a reduction in shareholder funding of under collected balances caused by a 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.

Item was held from the last several weeks' Voting Meetings, now scheduled to be heard on June 8, 2023; this vote will close the proceeding.
• 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 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update PICf)NEER

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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 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 was 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 customers. 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update Plf)NEER

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PG&E's 2024 ERRA Forecast and Testimony came out on May 15, 2023. Keyes and Fox and New Gen are reviewing the Application and PG&E's Public Testimony looking for any CCA specific issues. A meeting was held to discuss preliminary issues. The meeting discussed potential issues with the forecast. The main takeaways were that the forecast looks good now with PCIA remaining negative over many vintages, but this will change before the October Update. Many of the changes will revolve around CPUC decisions (GRC, PCIA Energy Index MPB, RPS MPB, and GHG MPB).

NewGen sent over rate forecast spreadsheet last week.
• 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 GrouR 3 (Portfolio ORtimization) 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 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 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update Plf)NEER

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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 a GHG-free MPB for PCIA calculations and to work with staff to develop the details of this approach. ED held a workshop on November 18, 2022 to discuss the Staff Proposal.
• CalCCA submitted Comments on the Staff Proposal on
November 7, 2022 addressing whether GHG-Free
Resources are under-valued in the PCIA methodology.

CalCCA supports the Staff Proposal to establish a MPB
for GHG-Free Resources. Replies were filed on
November 30, 2022. CalCCA filed Comments stating
that: 1) The CPUC should maintain the existing RPS
MPB methodology without change; Proposals to
incorporate long-term fixed-price contracts into the
RPS MPB calculation, while responsive to the
Commission's directive in D.19-10-020, do not align
with the determination of other MPBs and should be
rejected, as they are vulnerable to a wide range of
inaccuracy and impose an increased administrative
burden; 2) The CPUC should recognize GHG-Free value
in the IOUs' PCIA portfolios in a way that ensures all
customers - bundled and unbundled - share this value
in proportion to their responsibility for PCIA costs;
while CalCCA prefers the existing interim GHG-Free
energy allocation process as administered by PG&E
and SCE, the staff's proposed MPB is also a workable
solution; 3) The 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
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COMMUNITY ENERGY
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 AU 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.
• 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
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.
• The PD is favorable accepting many CalCCA requests.

CalCCA filed very limited Comments on the PD on May
24, 2023, and Reply Comments were filed on May 30,
2023. The PD is expected to be voted on at the June 8,
2023 Commission Voting Meeting.
• Resource Adequacy
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COMMUNITY ENERGY
• 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 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 needed 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) 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update Plf)NEER

COMMUNITY ENERGY
coordinating the CAISO processes with the Commission's SOD RA framework.
• 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 Change: CPEs to lock in procurement two years forward.

Regardless of unmet need, the CPE process would be complete at this point; CAISO conducts local backstop immediately after CPE procurement two years forward; CPE and backstop credits 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 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update PICt)NEER

COMMUNITY ENERGY
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.
• On May 25, 2023, the CPUC issued a PD adopting Local Capacity Obligations for 2024-2026, Flexible Capacity Obligations for 2024, and Program Refinements. The PD addresses outstanding issues in Phase 3 of the Implementation Track within the Resource Adequacy proceeding. The PD adopts CAISO's recommended 2024 - 2026 Local Capacity Requirements and 2024 Flexible Capacity
Requirements; it extends the Effective Planning Reserve Margin (PRM) through 2025 and retaining the 17% PRM for 2024-2025; the PD barred non-compliant LSEs from expansion for two calendar years following a system RA deficiency; the timeframe from which LSEs are barred from expanding needs clarification - it could be longer than two years; the PD also addressed issues around CPE transparency and reporting and CPE process enhancements, RA import rules, available transmission capacity, among other things.

Opening comments are due no later than June 14, 2023, and Replies are due on June 19, 2023.
• Utility Deenergization, PSPS, and EPSS:
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COMMUNITY ENERGY
• Pioneer staff is leading an effort among Joint CCAs and other stakeholders asking the CPUC for the consideration of Enhanced Powerline Safety Settings (EPSS) issues in the Deenergization or its own Proceeding. Pioneer, along with Joint CCAs, Joint Local Governments, and Rural County Representatives of California (RCRC), filed a motion with the CPUC on July 12, 2022, to consider EPSS issues in the Deenergization or its own Proceeding. The arguments in the motion are to treat EPSS events with the same regulations and oversight as PSPS events. Joint CCAs, Joint Local Governments, and RCRC held three ex parte meetings with Commissioners and staff from the CPUC. The meetings were overall successful; the parties seem to have gained some traction presenting their arguments. On November 7, 2022, Pioneer, along with the other Joint Parties, filed a letter with the CPUC regarding Fast Trip and EPSS issues and concerns; the letter was also sent to the Governor's Office and several others requesting that the Programs be regulated as the PSPS Program is. The letter contained signatures from Senator Dodd, Senator Laird, Senator Dahle, Senator Nielsen, Assembly Member Dahle, Assembly Member Gallagher, and Assembly Member Wood. PG&E quickly responded to the letter defending its EPSS 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.
• 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 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update Plc+)NEER

COMMUNITY ENERGY
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.
• 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.
• Fast Trip data requests received from all IOUs; a meeting with Joint Parties was held to discuss next steps. Joint Parties submitted Comments in the Wildfire Mitigation Plans Proceeding and are looking at a potential legislative hearing on the matter. • CPUC, CEC, and Legislative efforts to address the impacts of spiking natural gas prices:
• 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 was applied to residential utility customer bills beginning 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 bane 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.
• 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 ca p on profits and im pose penalties throu gh a 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update Plf)NEEA

COMMUNITY ENERGY
regulatory process if it determines that oil companies are making excessive profits and that a penalty will not result in higher consumer prices.
• 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. • Provider of Last Resort (POLR):
• This OIR will implement provider of last resort (POLR) requirements directed by SB 520 and will establish cost allocation and recovery for the POLR.
• 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.
■ The Proceeding is currently in Phase 1, with one last round of Comments. After Comments are filed, the CPUC will
determine if hearings are necessary. A Proposed Decision is expected in Q3 or Q4 of 2023.
■ The IOUs requested a delay for the Joint Case Management Statement from May 15, 2023 to May 26, 2023. This delay resulted in a Meet and Confer taking place on May 15, 2023 to discuss the need for evidentiary hearings and briefs. An additional Meet and Confer took place on May 23, 2023 and Parties determined evidentiary hearings were not necessary and that parties should file opening and reply briefs before the Commission issues a PD. The Joint Case Management
Statement was filed on May 26, 2023 reflecting this
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COMMUNITY ENEAGV
conclusion. On May 10, 2023, the IOUs filed their FSR
updates as Advice Letters . CCAs are evaluating the Advice Letters to determine whether or not there is a need to
protest, given it appears PG&E excluded PCIA revenues from their calculation. It does not appear that any CCAs will be filing protests to the ALs as all CCAs reported that their FSRs remain at the minimum $147,000.
■ 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 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.
• A Proposed Order was issued on May 19, 2023 which: 1) Denied the Joint Parties' request for a nine month extension; 2) Extends the MIDAS upload requirement for the time-dependent base rates from July 1, 2023 to August 1, 2023, and for the rate modifiers to October 1, 2023; 3) Finds that CCAs only have to upload their generation rates (and the IOUs will separately submit their transmission and distribution rates); and, 4) Finds that CCAs have no ability to seek an extension under the Load Management regulations. CalCCA filed comments on the Proposed Order on May 2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org June 15, 2023 - Pioneer Community Energy Legislative and Regulatory Update Plf)NEER

COMMUNITY ENERGY
26, 2023 recommending that the CEC: 1) Adopt the finding that CCAs are only required under the LMS regulations to upload their generation rates, and are not required to combine their generation rates with IOU transmission and distribution rates prior to upload to MIDAS; 2) To prevent legal error, modify the Proposed Order's finding that CCAs have no ability to request delays or other relief from the MIDAS upload requirement; and, 3) Modify the Proposed Order's findings to replace the term "unbundled" with "base" to fulfill the Commission's intent to require the CCAs and IOUs to upload on August 1, 2023 only those time-dependent base portions of rates that do not include modifiers or adders. On May 26, 2023 CalCCA held a meeting with CEC counsel; it was not a successful meeting; CEC council does not believe that CCAs can file for an extension as the IOUs can; there cannot be an interim plan and CCAs must comply will all requirements of the regulations; CCAs should not file requests for an extension unless it is a full plan for compliance. The Proposed Order was voted out at the May 31, 2023 CEC Business Meeting.
• 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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1 Customer
Engagement
Report
June 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
6/9/2023
2 Direct Customer
Engagement
01 Phone Calls/Emails
• 649 Total Calls
• 62 Total Emails
• 92.2 % Customer Sat
02 Customer Influence
• 7 Opt Outs Rescinded
• 20 Re-enrollments
• 29 Retained
03 Customer Engagement
• 277 Event Contacts
• 60 SMB Pilot Contacts
04 Chatbot
• 4,800 Customer users
• 36 Direct staff engagement
Upcoming Customer &
Key Stakeholder Events
• El Dorado County Fair
• Rocklin State of the City
• Loomis Chamber
• Auburn Chamber GAED
• Auburn Senior Center – Ways to Save
Presentation
3 4
6/9/2023
3 Social Media Activity
Facebook
• 428 Page Views
• 9 Items Posted
• 53,262 Post Impressions
LinkedIn
• 217 Followers
• 3 Items Posted
• 324 Post Impressions
Website Users
• 5,200 Total Users
• 12,370 Total Pages Views
Instagram
• 39 Followers
• 7 Items Posted
• 152 Impressions
Other Media Social Media Ads
• 7 Campaigns
• 62,290 Engagements
• 286,290 Impressions
Google Ads
• 7 Campaigns
• 757 Clicks
• 1,678,693 Impressions
Radio
• 498 Radio Spots
• 3,947,700 Impressions
• 614,366 Total Reach
Bus Shelters
• 2,206,200 Impressions
Print Media
• 4 Ad
• 119,700 Circulation
5 6
6/9/2023
4 Key Metrics
Total Participation
Rate

84.7%
Non-Residential
Participation Rate

93.6%
Green100
Total – 291
New - 5
7