Entry No. 1
PIONEER COMMUNITY ENERGY
GOVERNING BOARD
SPECIAL MEETING
September 28, 2023
Minutes
Heard General Administration Functions, Part I.
Notice of Cancellation
At the July 20, 2023 meeting, the September 21, 2023 meeting was cancelled and rescheduled to September 28, 2023, by Board consensus. A Cancellation Notice was posted on September 1, 2023.
Call to Order
Pioneer Community Energy Governing Board met in open session at 3:00 PM on July 20, 2023. 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; at Nevada City - City Hall, Wetherall Conference Room, 317 Broad Street, Nevada City, California 95959; was accessible for viewer participation on the Zoom platform at the following link: https://us06web.zoom .us/j/89967227073; and, was live streamed for viewing on the Pioneer website at: https: //pioneercommu n ityenergy. orq/about-us/meetings-and-agendas/.
Roll Call
p A Agency Primary Member or Alternate Member
X City of Auburn X Chair Rachel Radell-Harris
Alice Dowdin Calvillo
X County of El Dorado X Vice Chair Lori Parlin
John Hidahl
X City of Colfax Sean Lomen X Kim Douglass
X City of Grass Valley X Tom Ivy Jan Arbuckle
X City of Lincoln Holly Andreatta Dan Karleskint
X Town of Loomis X Amanda Cortez Danny Cartwright
X Nevada City X Gary Petersen vacant
X County of Placer X Jim Holmes Bonnie Gore
X County of Placer X Suzanne Jones
X City of Placerville David Yarbrough John Clerici
X City of Rocklin X Greg Janda David Bass
Chair Dowdin Calvillo presided over the meeting.
Director Holmes informed staff that he would excuse himself no later than 4: 30 PM due to a scheduling conflict.
Agenda Review
Reviewed and made no revision to the meeting agenda for September 28, 2023.
Public Comment
There were no comments from members of the public on items not listed on this agenda.
Director Ivy arrived prior to the Consent Agenda.
Entry No. 2
Acted on the Consent Agenda as follows:
Approved minutes of the July 20, 2023 regular meeting.
Minutes
September 28, 2023
Received Fiscal Year 2023-24 Draft Financial Reports through July 2023.
Adopted Resolution 2023-22 approving the Salary Range and Job Description for the Manager, Quantitative Analysis and Modeling position.
Adopted Resolution 2023-23 establishing a Special Program Fund (Budget) for Program purposes. (1) Adopted Resolution 2023-24 approving an attestation regarding the veracity of information reflected in Pioneer's 2022 Power Source Disclosure Report for Pioneer Standard ("Base Service") and the associated Power Content Label. (2) Adopted Resolution 2023-25 approving an attestation regarding the veracity of information reflected in Pioneer's 2022 Power Source Disclosure Report for Greenl00 and the associated Power Content Label. (3) Approved the Pioneer Power Content Label for distribution per Public Utilities Code Sections 398.4 and 398.5.
MOTION: Holmes/Hidahl. Vote: 9:0:2.
ROLL CALL: Cortez, Douglass, Dowdin Calvillo, Hidahl, Holmes, Ivy, Janda, Jones, Petersen.
No/Abstain: None.
Absent: Andreatta, Yarbrough.
Entry No. 3
Impact Assessment Study Results for the Expansion into Unincorporated Nevada County Received results of the Impact Assessment Study related to the expansion of Pioneer Community Energy service territory into Unincorporated Nevada County.
Executive Director Eckert introduced Sam Kang, Pioneer Community Energy Chief Operating Officer.
Heard a presentation from Pacific Energy Advisors which provided the following conclusions to the study:
1) Projected fiscal impacts are negative due to the currently high prices for renewable energy and resource adequacy.
2) Absent a sharp decrease in market prices, by more than 30%, or Pioneer rate adjustments, expansion would yield negative operating margins.
3) Wholesale power markets are volatile, and it is possible that market conditions could change before 2025 to make expansion fiscally beneficial.
Discussion of this item was held to hear the next item presentation regarding the Board's direction on moving forward with expansion efforts into unincorporated Nevada County.
Entry No. 4
Adopt Resolution Authorizing the Preparation of an Amendment to the Implementation Plan and Statement of Intent and to the Joint Exercise of Powers Agreement Allowing Expansion into Unincorporated Nevada County
Received presentation from Executive Director Eckert and discussed the Decision Point to:
A. Maintain Course with two conditions to continue:
1) Nevada County agrees to a rate-adder if needed to cover cost of service (incremental power cost) 2) Late 2025 start date to avoid summer procurement
PROS: continued momentum; JPA protected.
CONS: if abruptly ended, hard to start up again.
B. End the Process by voting "No" to the Resolution ending the process and we try again next year.
PROS: clean; ends process; pause deadline for filing Implementation Plan would be the same as waiting until next year.
CONS: qualitative; will need to start the process over again.
Minutes
September 28, 2023
Further discussion regarding the process timeline if moving forward confirmed that the Addendum to Pioneer's Implementation Plan would be remitted to the California Public Utilities Commission in December 2023 with an expected approval within 90 days (March 2024).
This coincides with the Sales Forecast for purchasing Resource Adequacy release in April 2024. Pioneer will need to decide at that time. After May 2024, it is binding, and Pioneer would be committed to procure at that forecasted rate.
Executive Director Eckert explained that we will have a better picture at the end of 2023 when PG&E releases their rates forecast, consider the market fluctuations, and then the hard offramp would be in spring 2024.
Executive Director Eckert committed to return to the Board in Spring 2024 to see actual costs and the adder rate. This will be the final 'offramp' if the Board declines moving forward.
General Counsel reminded the Board that the item before them today is to authorize staff to move forward with preparations to update the Implementation Plan Addendum, but not to file it; also, for General Counsel to work on documents for amending the JPA in each of the member agencies but not approving expansion until the November 16, 2023 Board meeting.
Next steps would include each of the member jurisdictions approving by resolution prior to the Board vote scheduled for November 16, 2023.
Adopted Resolution 23-26 as discussed including later effective date of April 2024 and two conditions: (1) Nevada County agrees to a rate-adder if needed to cover cost of service (incremental power cost); and (2) Late 2025 start date to avoid summer procurement.
Adopted Resolution 23-26 authorizing staff to prepare Addendum No. 3 to Pioneer Community Energy's Implementation Plan and Statement of Intent and Amendment No. 6 to the Joint Exercise of Powers Agreement to allow the addition of Unincorporated Nevada County as discussed.
MOTION: Holmes/Petersen. Vote: 9:0:2.
ROLL CALL: Cortez, Douglass, Dowdin Calvillo, Hidahl, Holmes, Ivy, Janda, Jones, Petersen.
No/Abstain: None.
Absent: Andreatta, Yarbrough.
Entry No. 5
Adopt a Resolution Approving and Authorizing the Executive Director to Execute an Agreement with NextEra Analytics, Inc. for Battery Optimization Services for an Amount Not to Exceed $300,000 Annually Only if Profitable
Adopted Resolution 23-27 authorizing the Executive Director to sign a three-year contract (automatic 1 year renewal thereafter) for battery optimization services with NextEra Analytics, Inc. (NEA) not to exceed $300,000 per year. Service fees are based on a shared-profit model on a graduated scale starting at zero, but not to exceed $300,000 per year. The three-year term will commence on the date in which the battery resource starts commercial operation in the California Independent System Operator (CAISO) market.
MOTION: Hidahl/Janda. Vote: 9:0:2.
ROLL CALL: Cortez, Douglass, Dowdin Calvillo, Hidahl, Holmes, Ivy, Janda, Jones, Petersen.
No/Abstain: None.
Absent: Andreatta, Yarbrough.
Director Holmes excused himself from the meeting following the vote on this item.
Minutes
September 28, 2023
Entry No. 6
Adopt a Resolution Approving and Authorizing the Executive Director to enter into a contract with Greenlite Lighting Corp. USA to execute LED Lighting Program Staff informed the Board that the contract negotiations are still in progress for the termination clauses; and, that terms already agreed upon include the scope of work, timeline, and the not-to-exceed amount of $262,400; and recommended the Board approve the contract in form; then, if there is a material change, staff will bring the contract back to the Board in October.
The original recommendation to adopt Resolution 23-28 approving and authorizing the Executive Director to enter into a contract with Greenlite Lighting Corp USA to execute an LED lighting program for an amount not to exceed $262,400 was moved and adopted by the Board of Directors.
MOTION: Cortez/Jones. Vote: 8:0:3.
ROLL CALL: Cortez, Douglass, Dowdin Calvillo, Hidahl, Ivy, Janda, Jones, Petersen.
No/Abstain: None.
Absent: Andreatta, Holmes, Yarbrough.
Per General Counsel direction, a second motion was made to authorize the Executive Director to finalize negotiations and execute an agreement with Greenlite Lighting Corp USA for Program services, pursuant to the terms described in the staff report and presentation associated with the item, for program services beginning October 1, 2023, for an amount not-to-exceed $262,400.00, subject to approval by General Counsel, which passed in approval of the updated item.
MOTION: Dowdin Calvillo/Cortez. Vote: 8:0:3.
ROLL CALL: Cortez, Douglass, Dowdin Calvillo, Hidahl, Ivy, Janda, Jones, Petersen.
No/Abstain: None.
Absent: Andreatta, Holmes, Yarbrough.
Requested staff to inform the Board as to which stores in the member jurisdictions will be offering the program.
Entry No. 7
Draft Fiscal Year 2022-23 Year-End Financial Reports
Received dralt Fiscal Year 2022-23 year-end Financial Reports through June 30, 2023.
Entry No. 8
Heard General Administration Functions, Part II.
Board Member Communications
Committee Chair Janda reported that the Audit & Finance Committee met on September 6, 2023. The Committee approved minutes from the December 8, 2022 and May 22, 2023 meetings; and received an overview of the Financial Audit Kick-Off from independent auditor, Pisenti & Brinker. The next Committee meeting has been scheduled for December 6, 2023.
Executive Director Eckert reported that the Expansion ad hoc Committee met on September 13, 2023.
The Committee heard presentation and discussed the Impact Assessment Study related to Nevada County joining Pioneer Community Energy. By consensus, the Committee agreed to recommend the Board of Directors approve moving forward with submitting an Implementation Plan Amendment in December 2023 with an expected start date of late 2025. The Committee supports a rate-adder to cover Nevada County's Cost of Service, but does not endorse impact to current ratepayers to subsidize potential new members.
Committee Chair Hidahl reported that on September 14, 2023, he attended the Energy Procurement Review ad hoc Committee along with Alice Dowdin Calvillo and Amanda Cortez. Pioneer staff and support including Commercial Counsel, General Counsel, and Technical Consultants were also in attendance. The Committee reviewed, discussed, asked questions, and approved the Executive Director's execution of a long Minutes
September 28, 2023
term capacity contract with Terra-Gen Power Holdings II, LLC that will help Pioneer meet its 2026-2041 resource adequacy requirements. The Committee also received information on a NextEra Energy analytics product for maximizing opportunities in battery storage.
Executive Director Communications
Executive Director Eckert informed the Board of the following items:
LOOMIS EGGPLANT FESTIVAL
Pioneer is excited to participate in the Loomis Eggplant Festival on October 7th once aga in. The community event promotes local businesses, organizations, and the citizens of Loomis. The event takes place at the historic Loomis Train Depot and Blue Anchor Park from 10am - 4pm. In addition to sharing information about Pioneer and answering customer questions, Pioneer is partnering with 4ever Yours Rescue, a non-profit dog rescue, to help find anima ls their forever home. State Senator Roger Nielo is expected to visit the booth.
FIVE-YEAR ANNIVERSARY EVENT
Pioneer Community Energy will host an event celebrating its 5-Year anniversary on Wednesday, November 1, from 5:00-7:00 p.m. at the Blue Goose in Loomis. The early evening reception will include food, beverages, and a scripted program that highlights the success of the past five years and pays tribute to those who made our success possible. "Save the Date" information was distributed in August, and a formal printed invitation will be mailed this week. The guest list includes current and former Board members, elected leaders, business partners, supporters, and expansion prospects.
Executive Director Eckert also informed the Board that the Participate.Energy program will be presented at the October 19, 2023 Board meeting.
Informational Items
Received the Glossary of Terms.
Adjournment
The meeting adjourned at 5: 04 PM
ATTEST:
Minutes approved as presented by a majority vote of
the Governing Board on October 19, 2023.
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Teresa Willock, Board Secretary