Pioneer Community Energy Board of Directors
December 14, 2023

Board of Directors
Chair: Alice Dowdin Calvillo
Vice Chair: John Hidahl
City of Auburn
Alice Dowdin Calvillo
Rachel Radell-Harris, Alternate
City of Colfax
Sean Lomen
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
Pioneer Community Energy
Board of Directors
December 14, 2023
3:00 PM Call to Order
Pioneer Community Energy Board Room
2510 Warren Drive, Suite B, Rocklin, CA 95677
Remote Locations
Nevada City – City Hall, Wetherall Conference Room
317 Broad Street, Nevada City, CA 95959
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 participated 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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When you join the meeting, you will be muted by default. To inform the Clerk that you would like to make a public comment, you will use the “Raise Hand” feature.

Public Comment via Computer or Smartphone
If you would like to make a comment, you will use the “Raise Your Hand” feature. Please note that you should only raise your hand during the item to which you will comment. Instructions for using the “Raise Hand” feature when using a computer or mobile device can be found at the link:
https://support.zoom.us/hc/en-us/articles/205566129-Raising-your-hand-in-a-webinar Public Comment via telephone (Audio Only Option)

1. Dial 1 (699) 900-6833

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You will be muted by default. To inform the Clerk that you would like to make a comment, during each agenda item, dial *9 to “Raise your hand.” When it is your turn to speak, the Clerk will identify you by the last three digits of your phone number; at that time, dial *6 to unmute yourself and state your name and comment for the record. Please note that you should only raise your hand during the item to which you will comment.

PIG, NEER

COMMUNITY ENERGY
I. GENERAL ADMINISTRATIVE FUNCTION – PART 1
A. CALL TO ORDER

1. Roll Call
B. AGENDA REVIEW
C. PRESENTATIONS BY THE PUBLIC ON MATTERS NOT ON THE AGENDA WITHIN THE

JURISDICTION OF THE BOARD
Persons may address the Board on items not this agenda. Please limit comments to 3 minutes per person. According to State Law (the Brown Act), items must first be noticed on the agenda before any discussion or action. The Board is prohibited from discussing issues not on the agenda brought to them at this time.

II. CONSENT AGENDA
1) APPROVAL OF THE CONSENT AGENDA
All items on the Consent Agenda have been recommended for approval by the Executive Director. All Consent items will be approved by a single vote. Anyone may ask to address Consent items prior to the Board acting, and the item may be moved for discussion. a) ADMINISTRATION
Approve minutes of the November 16, 2023 regular meeting. (ECKERT) b) FINANCE & ADMINISTRATION
Receive Fiscal Year 2023-24 Draft Financial Reports through October 2023. (KOEHN) c) FINANCE & ADMINISTRATION
Adopt Resolution authorizing the Executive Director to execute a third amendment to the agreement with Richards, Watson & Gershon for legal services. (ECKERT) d) FINANCE & ADMINISTRATION
Adopt Resolution to approved and authorize the Executive Director to execute all documents deemed necessary to consummate the following modifications to the Line of Credit and Letter of Credit agreements with Umpqua Bank: (1) Increase existing Line of Credit limit from $20 million up to $30 million. (2) Expand the Line of Credit purpose to include Working Capital if a meaningful credit rating improvement can be realized. (KOEHN)
III. REGULAR AGENDA
2) FINANCE & ADMINISTRATION
Adopt Resolution to Establish a Solar Billing Plan-Net Billing Tariff and Approving the Solar Billing Plan-Net Billing Tariff Policy (ACTION – KOEHN) Recommendation: Adopt Resolution to establish a Solar Billing Plan-Net Billing Tariff and Approving the Solar Billing Plan-Net Billing Tariff Policy
3) PUBLIC HEARING
Public Hearing and Consideration of Adopting a Resolution Authorizing a Rate Adjustment in 2024 (ACTION – ECKERT)
Recommendation: 1) Conduct the Public Hearing; and 2) Adopt resolution approving implementation of Pioneer Community Energy’s Customer Generation Rate changes effective January 1, 2024.

Persons may address the Board in person, accessing the zoom webinar, or by remitting written comment to [email protected] no less than 24 hours prior to the meeting. Verbal comments are limited to three minutes.
4) PROCUREMENT
Update on Assembly Bill 843 Implementation Status (DISCUSSION – KANG) Recommendation: Receive an update on Assembly Bill 843 implementation status.

IV. GENERAL ADMINISTRATIVE FUNCTION – PART 2
A. BOARD MEMBER COMMUNICATIONS
B. EXECUTIVE DIRECTOR COMMUNICATIONS
C. ITEMS FOR INFORMATION

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

January 18, 2024 at 3:00 PM
Accommodations
Pioneer Community Energy is committed to ensuring that persons with disabilities are provided with the resources to participate fully in its public meetings. If you are hearing impaired, we have listening devices available. If you require additional disability-related modifications or accommodations, including auxiliary aids or services, please contact the Clerk of the Board. If requested, the agenda shall be provided in appropriate alternative formats to persons with disabilities. All requests must be in writing and must be received by the Clerk five business days prior to the scheduled meeting for which you are requesting accommodation. Requests received after such time will be accommodated only if time permits.

Affidavit of Posting
I, Teresa Willock, Board Secretary, declare under penalty of perjury that the foregoing agenda for the December 14, 2023 regular meeting of the Pioneer Community Energy Governing Board was posted and available for public review on December 8, 2023 at the offices of Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, CA 95677; at remote location Nevada City – City Hall, Wetherall Conference Room, 317 Broad Street, Nevada City, CA 95959; and, was available for viewing 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].

ITEM #1a
DRAFT

PIONEER COMMUNITY ENERGY

GOVERNING BOARD

REGULAR MEETING MINUTES
November 16, 2023
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 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; and 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://pioneercommunityenergy.org/about-us/meetings-and-agendas/.

Roll Call

Present: City of Auburn (Dowdin Calvillo), City of Colfax (Lomen), County of El Dorado (Hidahl), City of Grass Valley (Ivy), City of Lincoln (Andreatta), Town of Loomis (Cortez), County of Placer (Holmes), County of Placer (Jones), City of Placerville (Yarbrough), and City of Rocklin (Janda).

Absent: County of El Dorado (Hidahl), Nevada City (Petersen).

Chair Dowdin Calvillo presided over the meeting.

Agenda Review
Reviewed and made no revision to the meeting agenda for November 16, 2023.

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

Entry No. 2
Acted on the Consent Agenda as follows:

Approved minutes of the October 19, 2023 regular meeting.

Adopted Resolution 2023-30 approving an updated New Member Reserve Policy.

Approved the New Member Reserve amount of $5,300,000 for the cities of Grass Valley and Nevada City.

Adopted Resolution 2023-31 approving and authorizing the Executive Director to execute a renewal agreement with Granicus for GovDelivery email services effective November 25, 2023, for an amount not to exceed $130,000.

MOTION: Holmes. SECOND: Andreatta. Vote: 9:0:2.

ROLL CALL: Andreatta, Cortez, Dowdin Calvillo, Holmes, Ivy, Janda, Jones, Lomen, Yarbrough.

No/Abstain: None.

Absent: Hidahl, Petersen.

DRAFT November 16, 2023 – page 2
Entry No. 3
Second Amendment to the Agreement with Calpine Energy Solutions, LLC Adopted Resolution 2023-32 approving and authorizing the Executive Director to execute a Second Amendment to the Agreement with Calpine Energy Solutions, LLC for data management and warehousing, call center support, and billing services increasing the contract authority and extending the termination date to December 31, 2026.

MOTION: Holmes. SECOND: Cortez. Vote: 9:0:2.

ROLL CALL: Andreatta, Cortez, Dowdin Calvillo, Holmes, Ivy, Janda, Jones, Lomen, Yarbrough.

No/Abstain: None.

Absent: Hidahl, Petersen.

Entry No. 4
Feed-in-Tariff Program
Considered resolution approving and authorizing a local Feed-in-Tariff (FIT) program in an amount not to exceed twenty million dollars.

Discussed prioritization of projects relevant to member agency composition such as biomass and hydroelectric; and moved the item to remove geothermal, wind, and solar+storage projects in an amount not to exceed fifteen million dollars of existing funds toward incentivizing local projects providing economic benefits through the local Feed-in Tariff program beginning in the next fiscal year.

Adopted Resolution 2023-33 approving and authorizing a local feed-in-tariff program in an amount not to exceed $15 million dollars excluding geothermal, wind, and solar+storage projects.

MOTION: Holmes. SECOND: Janda. Vote: 9:0:2.

ROLL CALL: Andreatta, Cortez, Dowdin Calvillo, Holmes, Ivy, Janda, Jones, Lomen, Yarbrough.

No/Abstain: None.

Absent: Hidahl, Petersen.

Entry No. 5
Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy Authorized staff to notice member agencies and proceed with adopting the Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy with any changes requested by the Governing Board.

MOTION: Janda. SECOND: Yarbrough. Vote: 9:0:2.

ROLL CALL: Andreatta, Cortez, Dowdin Calvillo, Holmes, Ivy, Janda, Jones, Lomen, Yarbrough.

No/Abstain: None.

Absent: Hidahl, Petersen.

This item will be presented for a vote by the Governing Board on January 18, 2024.

Entry No. 6
Nevada City and Grass Valley Expansion Update
Received an update on the public outreach and marketing activities for expansion into Nevada City and Grass Valley by Pioneer Community Energy beginning January 1, 2024.

DRAFT November 16, 2023 – page 3
Entry No. 7
Quarterly Financial Reports through September 30, 2023
Received the Quarterly Financial Reports through September 30, 2023.

Entry No. 8
Heard General Administration Functions, Part II.

Board Member Communications
Chair Dowdin Calvillo informed the Board that the California Public Utilities Commission (CPUC) has approved PG&E increases for 2024 with an average residential increase of $22 for electricity only; and $32 for gas and electricity.

Executive Director Communications
Executive Director Eckert informed the Board that a rates discussion is scheduled for the December Board meeting; announced that Pioneer will be represented at the Mountain Mandarin Festival this weekend; that staff will be conducting a kick-off meeting with Standard and Poors regarding Pioneer’s credit rating; and that Pioneer received two awards from the Public Relations Society of America/Sacramento Chapter, Influencer Award for the Pioneer Website and Merit Award for the Pioneer Chatbot.

Executive Director Eckert also inquired as to the Board’s interest in participating in a tour of the California Independent System Operator (CAISO) facility; as there were interested members, staff will proceed with planning.

Executive Director Eckert announced that the next meeting is scheduled for December 14, 2023; and Director Andreatta confirmed that the Placer County Air Pollution Control District Board meeting had been cancelled so there is no scheduling conflict for that date.

In closing, Executive Director Eckert expressed appreciation for Board Members who participated at Pioneer’s Five-Year Anniversary Event; and recognized Gina Stassi-Vanacore and Paige Garcia for all their work in making the event a success.

Informational Items
Received the Glossary of Terms.

Adjournment
The meeting adjourned at 4:06 PM.

Staff Report – Item 1b
To: The Governing Board
From: Eric Acedo, Sr. Financial Analyst
Item 1b: Receive Fiscal Year 2023-24 Draft Financial Reports Through October 2023 Date: 12/14/2023

RECOMMENDATION
Receive Fiscal Year 2023-24 Draft Financial Reports through October 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 October 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.
• Budgetary Comparison Schedule (Budget to Actuals) – Comparison of budget to actuals on a YTD basis through the reporting period end date for the CCA program.

STRATEGIC PLAN
Strategic Priority 5: Financial Stability & Strategic Growth

FISCAL IMPACT
The YTD change in net position through four months of the fiscal year is $16.3 million.

ATTACHMENTS

1. Financial Reports through October 31, 2023
1 ACCOUNTANTS’ COMPILATION REPORT
Management
Pioneer Community Energy
Management is responsible for the accompanying financial statements of the CCA Program of Pioneer Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of October 31, 2023, and the related statement of revenues, expenses, and changes in net position for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.

Management has elected to omit substantially all of the disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America in these interim financial statements. Pioneer Community Energy’s annual audited financial statements include the note disclosures and statement of cash flows omitted from these interim statements. If the omitted disclosures and the statement of cash flows were included in these financial statements, they might influence the user’s conclusions about Pioneer Community Energy’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

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

Maher Accountancy
San Rafael, CA
December 6, 2023
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com MAHER

ACCOUNTANCY
CCA Fund
ASSETS
Current assets
Cash and cash equivalents 25,655,039 $
Investments 51,356,257
Accounts receivable, net of allowance 21,563,898
Accrued revenue 8,043,274
Other receivables 964,155
Interest receivable 140,000
Prepaid expenses 78,878
Deposits 4,205,730
Total current assets 112,007,231
Noncurrent assets
Lease asset, net of amortization 1,411,570
Total noncurrent assets 1,411,570
Total assets 113,418,801

LIABILITIES
Current liabilities
Accrued cost of electricity 14,804,966
Accounts payable 422,888
Other accrued liabilities 564,340
Interest payable 23,356
Deposits 693,756
Note payable 663,612
Lease liability 77,964
Total current liabilities 17,250,882
Noncurrent liabilities
Note payable 6,379,540
Lease liability 1,539,252
Total noncurrent liabilities 7,918,792
Total liabilities 25,169,674

NET POSITION
Net investment (deficit) in capital assets (205,646)
Unrestricted net position 88,454,773
Total net position 88,249,127 $

PIONEER COMMUNITY ENERGY

STATEMENT OF NET POSITION
As of October 31, 2023

CCA FUND
See accountants' compilation report. 2
CCA Fund

OPERATING REVENUES
Electricity sales, net 79,612,576 $
Total operating revenues 79,627,576

OPERATING EXPENSES
Cost of electricity 60,138,519
Contract services 1,974,836
Staff compensation 1,171,244
Other operating expenses 305,052
Total operating expenses 63,589,651
Operating income (loss) 16,037,925

NONOPERATING REVENUES (EXPENSES)
Interest and investment returns 620,123
Interest and financing expense (394,328)
Nonoperating revenues (expenses), net 225,795
CHANGE IN NET POSITION 16,263,720
Net position at beginning of period 71,985,407
Net position at end of period 88,249,127 $

PIONEER COMMUNITY ENERGY
Four Months Ended October 31, 2023

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CCA FUND
See accountants' compilation report. 3
Participation Rates – October 2023
Participation Rate August 2023 September 2023 October 2023 AUBURN INC 85.59% 85.51% 85.53%
COLFAX INC 88.42% 88.26% 88.49%
LINCOLN INC 82.77% 82.76% 82.82%
LOOMIS INC 88.11% 88.13% 88.08%
PLACERVILLE INC 87.11% 86.97% 86.95%
ROCKLIN INC 90.84% 90.85% 90.79%
UNINC EL DORADO CO 81.02% 80.90% 80.84%
UNINC PLACER CO 85.07% 85.08% 84.96%
Grand Total 84.33% 84.28% 84.23%
4 Plf)NEER

COMMUNITY ENERGY
5 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Pioneer Community Energy
Management is responsible for the accompanying special purpose budgetary comparison schedule for the CCA Program of Pioneer Community Energy, a California Joint Powers Authority, for the period ended October 31, 2023, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

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

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

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

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

Maher Accountancy
San Rafael, CA
December 6, 2023
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com MAHER

ACCOUNTANCY
2023/24 YTD
Amended
Budget
2023/24 YTD
Actual
2023/24 YTD
Variance
(Under) Over
2023/24
YTD
Actual/
Budget %
2023/24
Amended
Budget
2023/24
Amended
Budget
Remaining

ENERGY REVENUES
Energy Sales $ 90,618,061 $ 80,691,880 $ (9,926,181) 89% 225,938,000 $ $ 145,246,120 Green100 Sales 11,163 10,176 91% (988) 30,000 19,824
Congestion Revenue Rights 1,226,569 1,860,529 (633,961) 66% 5,000,000 3,773,431 Less Uncollectible Accounts (1,223,495) (1,089,478) 134,017 89% (3,050,568) (1,961,090) Total Operating Revenues 80,839,146 91,266,259 (10,427,113) 227,917,432 147,078,286

ENERGY EXPENSES
Power Supply 61,365,087 69,096,000 (7,730,913) 89% 183,919,000 122,553,913 OPERATING MARGIN 22,170,259 19,474,059 (2,696,200) 43,998,432 24,524,373

OPERATING EXPENSES
Administration
Compensation 221,020 290,169 (69,149) 76% 870,507 649,487 Contract services 170,442 23,345 (147,097) 14% 381,325 357,980 Operating expenses 359,793 230,743 (129,050) 64% 791,126 560,383 Total Administration expenses 820,403 475,108 (345,295) 58% 2,042,958 1,567,850 Finance
Compensation 278,561 276,622 1,939 101% 829,866 551,305 Contract services 161,873 70,837 (91,036) 44% 591,618 520,781 Operating expenses 81,034 65,527 (15,507) 81% 256,103 190,576 Total Finance expenses 519,529 414,925 (104,604) 80% 1,677,587 1,262,662 Power Procurement
Compensation 188,646 299,746 (111,099) 63% 899,237 710,591 Contract services 444,958 481,792 36,834 108% 1,880,341 1,398,549 Operating expenses 14,333 2,149 (12,184) 15% 43,000 40,851 Total Power Procurement expenses 672,588 759,037 (86,450) 89% 2,822,578 2,149,990 Customer Care
Compensation 208,466 241,859 (33,393) 86% 725,576 517,110 Contract services 973,790 872,653 (101,137) 90% 2,921,370 2,048,717 Operating expenses 6,083 - (6,083) 0% 18,250 18,250
Total Customer Care expenses 1,081,119 1,221,732 (140,613) 88% 3,665,196 2,584,077 Marketing & Communications
Compensation 27,906 64,641 (36,735) 43% 193,922 166,016 Contract services 368,787 333,689 (35,098) 90% 1,106,360 772,671 Operating expenses 209,481 155,833 (53,649) 74% 361,600 205,767 Total Marketing expenses 642,909 517,428 (125,481) 80% 1,661,882 1,144,454 Legislative & Regulatory
Compensation 181,248 192,577 (11,329) 94% 577,732 396,484 Contract services 110,788 53,580 (57,207) 48% 317,275 263,695 Operating expenses 2,100 921 (1,179) 44% 6,300 5,379
Total Legislative expenses 235,750 305,465 (69,715) 77% 901,307 665,557 Programs
Compensation 60,937 70,094 (9,158) 87% 210,283 149,346
Contract services 20,667 - (20,667) 0% 62,000 62,000
Operating expenses 575,906 - (575,906) 0% 1,727,717 1,727,717 Total Programs expenses 666,667 60,937 (605,730) 9% 2,000,000 1,939,063 Total Operating Expenses 4,935,742 3,457,853 (1,477,889) 70% 14,771,508 11,313,655

NON-OPERATING REVENUES (EXPENSES)
Investment gains (losses) 187,500 620,124 432,624 750,000 129,876 Term Loan Debt Service (316,667) (587,244) (270,578) 185% (950,000) (362,756) Additional Term Loan Principal - - - (2,100,000) (2,100,000) Line/Letter of Credit Fees (175,000) 175,000 - 0% (350,000) (350,000) Financial Security Requirement - - - (360,000) (360,000) Nonoperating revenues (expenses), net (304,167) 47,879 352,046 (3,010,000) (3,057,879) Total Expenses (Energy, Operating, Non-Operating) 74,335,909 64,775,061 (9,560,848) 201,700,508 136,925,447 Contribution to/(from) Reserves $ 16,930,350 $ 16,064,085 $ (866,265) $ 26,216,924 $ 10,152,839

BUDGETARY COMPARISON SCHEDULE
Four Months Ended October 31, 2023

PIONEER COMMUNITY ENERGY

CCA FUND

Staff Report – Item 1c
To: The Governing Board
From: Donald Eckert, Executive Director
Item 1c: Adopt a Resolution Authorizing the Executive Director to Execute a Third Amendment to the Agreement with Richards, Watson & Gershon for Legal Services Date: 12/14/2023

RECOMMENDATION
Adopt a Resolution authorizing the Executive Director to execute a third 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”) for a contract authority not-to-exceed $160,000 with a term through Fiscal Year 2021-22.

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 a contract authority increase of $148,000. On June 15, 2023, the Board approved the second amendment extending the term through December 31, 2023 and increasing the contract authority by $80,000 for a total contract value of $388,000.

ANALYSIS & DISCUSSION
The third amendment extends the contract for six additional months of legal services through the end of Fiscal Year 2023-24 and increases the contract authority by $80,000, the same as the previous amendment. The third amendment results in a total contract value of $468,000.

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 FY 2023-24.

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 FY 2023-24 Operating Budget.

ATTACHMENTS

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

2. Second amendment to the agreement between Pioneer and RWG

3. First amendment to the agreement between Pioneer and RWG

4. 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 December 14, 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 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 (“RWG”) was selected as Pioneer’s General Counsel as a result of a Request for Proposal process; and
WHEREAS, Pioneer and 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 RWG have further amended the Original Agreement on June 15, 2023 to increase the total not-to-exceed amount to $388,000 and to extend the termination date to December 31, 2023; and
In the matter of: Resolution Authorizing
the Executive Director to Execute a
Third Amendment to the Agreement
with Richards, Watson & Gershon for
Legal Services
2 WHEREAS, Pioneer and RWG desire to further amend the Original Agreement to increase the total not-to-exceed amount by $80,000.00 to a total of $468,000.00, and extend the termination date to June 30, 2024, as shown in Exhibit “A.”
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 Third Amendment to the Consultant Services Agreement with RWG, as attached hereto as Exhibit “A,” and authorizes the Executive Director to execute the Third 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: Third Amendment to Consultant Services Agreement with Richards Watson Gershon Resolution 2023-__
December 14, 2023
Administering Agency: Pioneer Community Energy
Contract Description: General Counsel Services

CONSULTANT SERVICES AGREEMENT
AMENDMENT NO. 3
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 Four Hundred Sixty-Eight Thousand dollars ($468,000), an increase of $80,000.
• Section 16 – Contract Term:

The contract term is hereby extended to terminate on June 30, 2024.

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

CONSUL TANT 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:

Name By~~ : Donald Eckert
Title: Executive Director
By: ~t:Led--
Name: lnder Khalsa
Title:

Date: 6 - /£,?~
Date: (,/I? I 2-023
Administering Agency:

Contract Description:

Pioneer Community Energy
General Counsel Services

CONSUL TANT 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:

E-SIGNED by Donald Eckert
on 2022-06-28 15:40: 11 PDT
By: ____ _______ _
Name: Donald Eckert
Title: Executive Director
E-SIGNED by lnder Khalsa
on 2022-06-28 21 :49:38 PDT
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 1d
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1d: Adopt Resolution to Modify Line of Credit and Letter(s) of Credit Agreements with Umpqua Bank
Date: 12/14/2023

RECOMMENDATION
Adopt Resolution to approve and authorize the Executive Director to execute all documents deemed necessary to consummate the following modifications to the Line of Credit and Letter(s) of Credit agreements with Umpqua Bank:

1. Increase existing Line of Credit limit from $20 million up to $30 million.

2. Expand the Line of Credit purpose to include Working Capital if a meaningful credit rating improvement can be realized.

BACKGROUND
Pioneer routinely and regularly solicits energy bids that are in accordance with the Energy Risk Management Policy. Over time, staff has observed that fewer energy suppliers are providing bid responses to the energy solicitations. It is to Pioneer’s advantage that multiple suppliers bid on Pioneer’s energy solicitations to ensure that Pioneer is receiving the benefit of competitive market pricing. In response, at the May 2022 Board meeting, the Board authorized Pioneer to execute a Line of Credit with Umpqua Bank for up to $20 million.

ANALYSIS & DISCUSSION
The Line of Credit has been a valuable financial tool for Pioneer to maintain and improve its cash position by preserving cash or reclaiming cash held as collateral. To date, Letters of Credit valued close to $10 million have been issued. However, as the cost of energy continues to increase, so do the negotiated contract values per routine solicitations resulting in the likelihood of higher collateral requirements. To meet these increased collateral requirements, Pioneer could benefit from a deeper Line of Credit reserve. The benefit of an increased Line of Credit allows the Letters of Credit to be timely and promptly issued instead of posting cash collateral first and then begin negotiating with the Bank an increased Line of Credit. The Bank approval process and the timing of Board meetings to obtain Board approval may delay the use of this important financial tool for weeks or even months.

Line of Credit and Letter of Credit
The finance structure that Pioneer and Umpqua Bank (Pioneer’s current banking partner) currently have in place is a Line of Credit of $20 million that would be used as security for issued Letter(s) of Credit that are provided to energy suppliers in case of default. Pioneer has initiated discussions with Umpqua Bank to increase the Line of Credit to as high as $30 million. The not to exceed costs are listed below and are unchanged compared to the resolution that approved the $20 million Line of Credit.

Line of Credit – Annual stand by fee of .75%
Line of Credit - Prime + .5% would only be applicable if Pioneer defaults on a Letter of Credit and the Line of Credit is used to support the Letter of Credit
Letter(s) of Credit – 2% per annum
12/14/2023
Plf)NEER

COMMUNITY ENERGY
Agenda Item: 1d Agenda Date: 12/14/2023

The final terms with Umpqua have not been approved as of yet by the banks credit department and the fee(s) are still subject to change. Understanding that the fee(s) are not final as of yet, the Resolution authorizes the Executive Director to execute the necessary documents to increase the Line of Credit and Letter(s) of Credit up to $30 million and provides a not-to-exceed fee authority.

FISCAL IMPACT
Pioneer will pay a Line of Credit fee and, if/when Letter(s) of Credit are issued, a fee based on the amount of the Letter(s) of Credit. The Fiscal Year 2023-24 budget did anticipate annual cost of these fees, but the active utilization of these financial instruments that is resulting in increased liquidity will need another review with the midyear budget review to ascertain if any adjustments may be needed. Although this financial tool has a cost, that resulting preserved cash is able to generate interest earnings that can be viewed as offsetting at least a portion of those Line of Credit and Letter of Credit fees.

ATTACHMENTS

1. Resolution Approving and Authorizing the Executive Director to Execute any and all documents and agreements to modify Line of Credit and Letter of Credit Agreements with Umpqua Bank 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 December 14, 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 (“Pioneer”) obtains energy provided by energy suppliers for its customers; and
WHEREAS, Pioneer routinely executes energy contracts and an energy supplier may require collateral either in the form of cash or a Letter of Credit in order to agree to an energy contract with Pioneer; and
WHEREAS, past indicative pricing for suppliers that require collateral have demonstrated cost of energy savings even after accounting for the cost of collateral; and WHEREAS, on May 19, 2022, the Governing Board authorized Pioneer to execute a Line of Credit agreement with Umpqua Bank for $20 million to allow Pioneer to offer collateral via Letter of Credit to potential power suppliers as a tool in negotiating favorable pricing and attract more creditworthy suppliers; and
WHEREAS, the use of a Line of Credit for collateral posting preserves Pioneer’s cash for liquidity purposes and for achieving the minimum Board-approved Reserves target; and WHEREAS, Pioneer has been able to reclaim cash collateral of almost $7 million to date by the issuance of Letters of Credit backed by the Line of Credit; and In the matter of: A Resolution Approving and
Authorizing the Executive Director to Execute
any and all documents and agreements to modify
Line of Credit and Letter of Credit Agreements
with Umpqua Bank
Resolution 2023-__
December 14, 2023
2 WHEREAS, an increased limit of the Line of Credit and Letter of Credit Agreement(s) up to $30 million would allow Pioneer additional collateral capacity for future energy contracts; and WHEREAS, expanding the purpose of the Line of Credit to include a Working Capital purpose may be viewed favorably by a national rating agency; and WHEREAS, Umpqua Bank is offering the same cost structure and terms for a Line of Credit and Letter(s) of Credit financial instruments as was approved by the Board in May 2022.

NOW THEREFORE, BE IT RESOLVED, the Governing Board of Pioneer Community Energy 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 a Line of Credit up to $30 million and Letter(s) of Credit with Umpqua Bank, provided that the term does not extend beyond 5 years, interest costs does not exceed Prime + 1%, and the annual Line of Credit fee does not exceed 1%, and the Letter(s) of Credit Fee does not exceed 3% per annum on the required credit amount.

3. The Governing Board hereby approves and authorizes the Line of Credit purpose to include Working Capital if a meaningful credit rating improvement can be realized.

4. The Governing Board hereby authorizes the Executive Director to execute all documents deemed necessary to consummate the Line of Credit and Letter(s) of Credit with Umpqua Bank.

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

Staff Report – Item 2
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 2: Adopt Resolution to Establish a Solar Billing Plan-Net Billing Tariff and Approving the Solar Billing Plan-Net Billing Tariff Policy
Date: 12/14/2023

RECOMMENDATION
Adopt Resolution to Establish a Solar Billing Plan-Net Billing Tariff and Approving the Solar Billing Plan-Net Billing Tariff Policy.

BACKGROUND
The California Public Utilities Commission (“CPUC”) directed the Investor-Owned Utilities (“IOU’s”) including Pacific Gas and Electric (“PG&E”) to implement a new billing structure for renewable system interconnection applications (i.e., solar, wind, fuel cells) received on and after April 15, 2023. PG&E billing systems were not prepared to implement that directive; and PG&E’s ‘go live’ date was planned for December 2023. PG&E has recently submitted a request to the CPUC to delay implementation until August 2024 for the new Solar Billing Plan (“SBP”, SBP also may be referred to as Net Billing Tariff, “NBT” or “NEM 3.0”). For the interim period before the PG&E SBP ‘go live’ date, customers subject to the SPB are billed as NEM 2.0 customers before transitioning to SBP.

This policy is separate from Pioneer’s Net Energy Metering (“NEM”) policy and is only applicable to customers enrolled in SBP. NEM 1.0 and NEM 2.0 customers are not subject to SBP and are not covered under this policy.

NEM 1.0 and NEM 2.0 customers are covered under Pioneer’s NEM policy.

In order to retain customers that will automatically be enrolled in PG&E’s SBP, Pioneer will need to adopt its own Solar Billing Plan Tariff and Policy in order to offer customers a SBP choice.

ANALYSIS & DISCUSSION
There are several components of the CPUC directed billing structure that affect customers regardless of Pioneer’s adoption of a SBP Policy and are more informative and provide additional context program. Those components include the billing cycle (monthly), Locked-in-EEC pricing, and Energy Export Bonus Credit.

MONTHLY BILL
All SBP customers will (including customers that receive generation from PG&E) will receive a monthly bill that will reflect the customer’s usage and generation. The energy exported to the grid will receive the Energy Export Credit (EEC) that is applied to the bill and will reduce the customer’s cost for electricity usage that was imported from the grid. The customer will be required to pay their monthly bill to remain in good standing. If the EEC exceeds the usage charges in a month, the unused EEC will roll to the next monthly bill and be a credit to the next month’s usage charges.

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Agenda Item: 2 Agenda Date: 12/14/2023

LOCKED-IN and NON LOCKED-IN
The CPUC program allows new SBP customers in the first 5 years of the program to receive a “Locked- In” EEC price for the customer’s initial 9 years in the program. A customer may choose to opt out of the Locked-In program and would then receive an EEC that is recalculated from time to time (expected to be updated at least annually). This will also cause customers in the Locked-In program to have a different calculated EEC depending on their enrollment in year 1, 2, 3, 4 or 5 in the program. Any NEM 1.0 or NEM 2.0 customers that transition to the SBP will not be eligible to receive the Locked-In pricing.

ENERGY EXPORT BONUS CREDIT
New solar systems installed by residential customers in 2023 to 2027 may be eligible for an Energy Export Bonus Credit for excess energy delivered to the grid. The credit is applied on a $/kWh basis as an adder to the standard EEC. Customers that are eligible for the bonus credit will continue to receive that increased compensation for the initial nine years after interconnection. The value of the credit declines each year of the program, such that customers that interconnect in subsequent years will receive a reduced bonus credit for their initial nine years. The bonus credit for eligible residential customers is calculated and credited by PG&E to both PG&E and Pioneer customers.

Other components of the Policy are structured for Pioneer customers specifically.

USAGE
A customer’s monthly electricity usage (i.e., imported energy from the grid) will be charged to the customer at Pioneer’s applicable generation rate charge, which has historically been at a discount to PG&E. This will occur when the customer’s electricity usage exceeds the generation in any time-of-use period.

ENERGY EXPORT CREDIT (“EEC”)
An EEC is a credit issued to the customer for the net generation that is exported to the grid from the customer’s system as measured on a real-time basis. Different hours have different EEC values, based on the historical value of energy to the grid at that specific time, and is calculated using a tool developed by the CPUC, called the “California Avoided Cost Calculator.” The total EEC value in each hour is the sum of two components: (1) “delivery,” which is the infrastructure-based components that reflect the value to PG&E’s distribution system, and (2) “generation,” which reflects the hourly value of generation to Pioneer. Under the SBP, the total EEC for Pioneer customers is the same as the total EEC for PG&E customers. The hourly EEC values for the generation EEC are available at PG&E’s website.

ANNUAL TRUE UP
The SBP is structured by the CPUC to strongly discourage the oversizing of electricity generating systems which results in excess energy generation. The expected outcome is that there will be no or very few customer systems that will generate more electricity than the customer’s usage. However, on an annual basis, typically in the March/April billing period, Pioneer will analyze customer annual kWh usage and annual kWh generation and if kWh generation exceeded usage, then the kWh difference will be converted and paid to the customer by using PG&E’s Net Surplus Compensation (“NSC”) rate plus $0.005/kWh.

Agenda Item: 2 Agenda Date: 12/14/2023

(The plus $0.995/kWh is also what is provided in the NEM Policy). The NSC rate is calculated to be comparable to the wholesale cost of electricity. For customers that had annual kWh usage that exceeded annual kWh generation and at the annual true up period also had an EEC that exceeded the last month of the annual true up period usage charges, the kWh’s represented by the unused EEC will be recalculated using the NSC rate plus $.005/kWh.

The NSC calculated amount will be first applied to any outstanding Pioneer charges and any remaining NSC balance if less than $100.00 will be issued in the form of a customer bill credit while payments of $100.00 or more will be issued as a payment directly to the customer. The maximum NSC amount payable shall be $5,000.00.

DOUBLE COMPENSATION
The SBP is structured by the CPUC to strongly discourage the oversizing (i.e., when energy generated exceeds usage over an annual period) of electricity generating systems. The expected outcome is that there will be no or very few customer systems that will generate more electricity than the customer’s usage. However, customers under NEM 1.0 and NEM

2.0, programs under which oversized systems are known to exist, will transition over time to the SBP rate typically at the end of the customer’s contract (e.g., typical 20-year contract term).

For SBP, in the case of a system that is oversized and generates more electricity than it uses on an annual basis, the customer would receive double compensation by receiving the EEC during the year and then an NSC payment on the excess generation. To eliminate this double compensation, the IOU’s are reversing the EEC value of the excess generated kWh before crediting the NSC to the customer’s account. Because of the expected minimal oversized systems in the next few years, minimal cost to Pioneer, and minimal customer benefit to an oversized system, Pioneer will not, at this time reverse the kWh value of the excess generated EEC before crediting the NSC to the customer’s account. This double compensation provision will be revisited by Pioneer when there is an increase in SBP accounts that are receiving double compensation.

A comparison summary table is on the following page.

Agenda Item: 2 Agenda Date: 12/14/2023

Pioneer and PG&E Comparison Table

Characteristic PG&E Pioneer
Customer
Benefit
SBP Rate - Usage SBP Rate SBP Rate Pioneer *
Generation Energy Export Credit Energy Export Credit Same Billing Monthly Monthly Same
Annual True Up -
Generation
Exceeds Usage
Reverses Energy Export
Credit for excess
energy generation No Reversal Pioneer +
Annual True Up -
Generation
Exceeds Usage Paid at the NSC rate
Paid at the NSC rate +
.005/kWh Pioneer
Locked-In EEC
pricing Offered Offered Same
Energy Export
Bonus Credit Yes
Yes-PG&E credits Pioneer
customers Same

* Historically Pioneer's generation rates have been at a discount to PG&E. + Pioneer may reconsider the 'No Reversal' option in the future.

CUSTOMERS RETURNING TO PG&E SERVICE AND ACCOUNTS CLOSURES Pioneer customers with SBP service may opt-out and return to PG&E service at any time, subject to Pioneer and PG&E’s terms and conditions for return to PG&E service. Customers are advised that PG&E may perform a True-Up of their account for any PG&E charges at the time of return to PG&E service. Customers returning to PG&E service or closing their PG&E account must request a review and reconciliation of their Pioneer account within 90 days of the end of their Pioneer service for a Cash-Out payment or payments will be subject to forfeiture. This reconciliation and settlement will follow Pioneer’s Annual True Up process and any reconciled Cash-Out payment resulting in a check issued to the address provided by the customer.

TRANSITION OF TEMPORARILY ASSIGNED NEM 2.0 CUSTOMERS
For the interim period before the PG&E SBP ‘go live’ customers subject to the SBP are billed as NEM 2.0 customers and will transition to SBP after the PG&E ‘go live’ date. The timing of that transition will be subject to the CPUC’s consideration and approval of PG&E’s implementation delay request. The annual true up for these NEM 2.0 customers that transition to SBP will occur at their date of transition to SPB or after their first 12 months of NEM 2.0 is completed, whichever is sooner. These customers will be reconciled at the NEM 2.0 (NEM Policy) true up process and then be enrolled at the SBP rate. Once active at the SBP rate these customers will also be included in the SBP annual true up process, typically in the March/April billing period.

Agenda Item: 2 Agenda Date: 12/14/2023

STRATEGIC PLAN
Establishment of a SBP Policy is consistent with the Strategic Priority of Quality in Service -- to keep rates stable and competitive.

FISCAL IMPACT
Adopting a SBP will allow Pioneer to offer a choice to existing customers that would transition to a PG&E SBP and thereby may retain those customers. The retention of customers is a stabilizing influence on the budget.

ATTACHMENTS

1. Resolution to Establish a Solar Billing Plan-Net Billing Tariff and Approving the Solar Billing Plan-Net Billing Tariff Policy
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 December 14, 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 California Public Utilities Commission (CPUC) directed the Investor-Owned Utilities, including PG&E to implement a new billing structure for renewable system interconnection applications (solar, wind, fuel cells) received on and after April 15, 2023, referred to as both a Solar Billing Plan and Net Billing Tariff; and WHEREAS, PG&E billing systems were not prepared to implement that directive, mid-December was the PG&E’s planned ‘go live’ for the new Solar Billing Plan and PG&E has submitted a request to the CPUC to delay implementation until August 2024; and WHEREAS, the Board of Pioneer Community Energy desires to retain customers that will be automatically enrolled in a Solar Billing Plan Tariff; and WHEREAS, the Board desires to establish both a Solar Billing Plan-Net Billing Tariff rate and a Policy that will govern the implementation of Pioneer’s Solar Billing Plan-Net Billing Tariff; and WHEREAS, the Solar Billing Plan-Net Billing Tariff rate and Policy is separate, distinct, and not applicable to customers enrolled in NEM 1.0 and NEM 2.0, and WHEREAS, the Board will consider any 2024 rate adjustments and establishing new rates in a separate agenda item.

In the matter of: Resolution Establish a Solar Billing
Plan-Net Billing Tariff and Approving the Solar Billing Plan-Net Billing Tariff Policy
Resolution 2023-__
December 14, 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 establishment of a Solar Billing Plan-Net Billing Tariff is authorized.

3. The Solar Billing Plan-Net Billing Tariff Policy as presented in Attachment A is approved.

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

Attachment A: Solar Billing Plan-Net Billing Tariff Policy

Solar Billing Plan (“SBP”) - (may be referred to as Net Billing Tariff “NBT”) BACKGROUND:

The California Public U�li�es Commission (“CPUC”) directed the Investor-Owned U�li�es (“IOU’s”) including Pacific Gas and Electric (“PG&E”) to implement a new billing structure for renewable system interconnec�on applica�ons (i.e., solar, wind, fuel cells) received on and a�er April 15, 2023. PG&E billing systems were not prepared to implement that direc�ve; and mid-December 2023 was PG&E’s an�cipated ‘go live’ date for the new SBP (SBP also may be referred to as Net Billing Tariff, “NBT” or “NEM 3.0”). PG&E has recently submited a request to the CPUC to delay the start of SBP un�l August 2024. For the interim period before the PG&E SBP ‘go live’ date, customers subject to the SPB are billed as NEM 2.0 customers before transi�oning to SBP.

This policy is separate from Pioneer’s Net Energy Metering (“NEM”) policy and is only applicable to customers enrolled in SBP. NEM 1.0 and NEM 2.0 customers are not subject to SBP and are not covered under this policy. NEM 1.0 and NEM 2.0 customers are covered under Pioneer’s NEM policy.

DEFINITIONS & POLICY:

ELECTRICITY GRID
An electricity grid (grid) is a network of power lines and associated equipment used to transmit and distribute electricity over a geographic area.

NET GENERATION
A customer’s genera�on of electricity that exceeds the customer’s usage (i.e., exported energy to the grid) as measured on a real-�me basis.

ENERGY EXPORT CREDIT (“EEC”)
An EEC is a credit issued to the customer for the net genera�on that is exported to the grid from the customer’s system as measured on a real-�me basis. Different hours have different EEC values, based on the historical value of energy to the grid at that specific �me, and is calculated using a tool developed by the CPUC, called the “California Avoided Cost Calculator.” The total EEC value in each hour is the sum of two components: (1) “delivery,” which is the infrastructure-based components that reflect the value to PG&E’s distribu�on system, and (2) “genera�on,” which reflects the hourly value of genera�on to Pioneer. Under the SBP, the total EEC for Pioneer customers is the same as the total EEC for PG&E customers. The hourly EEC values for the genera�on EEC are available at PG&E’s website.

SELF CONSUMPTION
When a customer’s electricity usage is solely supplied by the customer’s owned system; for solar systems, produc�on during solar genera�ng hours and then is either used by the customer immediately or is stored and used at a later �me. This energy is not supplied to the grid, nor is the customer charged for this electricity.

USAGE
A customer’s monthly electricity usage (i.e., imported energy from the grid) will be charged to PICf)NEER

COMMUNITY ENERGY

the customer at Pioneer’s applicable genera�on rate charge, which has historically been at a discount to PG&E. This will occur when the customer’s electricity usage exceeds the genera�on in any �me-of-use period.

MONTHLY BILL
A customer’s monthly bill will reflect the customer’s usage and genera�on. The energy exported to the grid will receive the EEC that is applied to the bill and will reduce the customer’s cost for electricity usage that was imported from the grid. The customer will be required to pay their monthly bill to remain in good standing with Pioneer. If the EEC exceeds the usage charges in a month, the unused EEC will roll to the next monthly bill and be a credit to the next month’s usage charges.

ANNUAL TRUE UP
The SBP is structured by the CPUC to strongly discourage the oversizing of electricity genera�ng systems which results in excess energy genera�on. The expected outcome is that there will be no or very few customer systems that will generate more electricity than the customer’s usage.

However, on an annual basis, typically in the March/April billing period, Pioneer will analyze customer annual kWh usage and annual kWh genera�on and if kWh genera�on exceeded usage, then the kWh difference will be converted and paid to the customer by using PG&E’s Net Surplus Compensa�on (“NSC”) rate plus $0.005/kWh. The NSC rate is calculated to be comparable to the wholesale cost of electricity. For customers that had annual kWh usage that exceeded annual kWh genera�on and at the annual true up period also had an EEC that exceeded the last month of the annual true up period usage charges, the kWh’s represented by the unused EEC will be recalculated using the NSC rate plus $.005/kWh.

The NSC calculated amount will be first applied to any outstanding Pioneer charges and any remaining NSC balance if less than $100.00 will be issued in the form of a customer bill credit while payments of $100.00 or more will be issued as a payment directly to the customer. The maximum NSC amount payable shall be $5,000.00.

DOUBLE COMPENSATION
As stated above, the SBP is structured by the CPUC to strongly discourage the oversizing (i.e., when energy generated exceeds usage over an annual period) of electricity genera�ng systems.

The expected outcome is that there will be no or very few customer systems that will generate more electricity than the customer’s usage. However, customers under NEM 1.0 and NEM 2.0, programs under which oversized systems are known to exist, will transi�on over �me to the SBP rate typically at the end of the customer’s contract (e.g., typical 20-year contract term).

For SBP, in the case of a system that is oversized and generates more electricity than it uses on an annual basis, the customer would receive double compensa�on by receiving the EEC during the year and then an NSC payment on the excess genera�on. To eliminate this double compensa�on, the IOU’s are reversing the EEC value of the excess generated kWh before credi�ng the NSC to the customer’s account. Because of the expected minimal oversized systems in the next few years, minimal cost to Pioneer, and minimal customer benefit to an oversized system, Pioneer will not, at this �me reverse the kWh value of the excess generated EEC before credi�ng the NSC to the customer’s account. This double compensa�on provision will be revisited by Pioneer when there is an increase in SBP accounts that are receiving double compensa�on.

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LOCKED-IN and NON LOCKED-IN
The CPUC program allows new SBP customers in the first 5 years of the program to receive a “Locked- In” EEC price for the customer’s ini�al 9 years in the program. A customer may choose to opt out of the Locked-In program and would then receive an EEC that is recalculated from �me to �me (expected to be updated at least annually). This will also cause customers in the Locked-In program to have a different calculated EEC depending on their enrollment in year 1, 2, 3, 4 or 5 in the program. Any NEM 1.0 or NEM 2.0 customers that transi�on to the SBP will not be eligible to receive the Locked-In pricing.

ENERGY EXPORT BONUS CREDIT
New solar systems installed by residen�al customers in 2023 to 2027 may be eligible for an Energy Export Bonus Credit for excess energy delivered to the grid. The credit is applied on a $/kWh basis as an adder to the standard EEC. Customers that are eligible for the bonus credit will con�nue to receive that increased compensa�on for the ini�al nine years a�er interconnec�on.

The value of the credit declines each year of the program, such that customers that interconnect in subsequent years will receive a reduced bonus credit for their ini�al nine years. The bonus credit for eligible residen�al customers is calculated and credited by PG&E to both PG&E and Pioneer customers.

Pioneer and PG&E Comparison Table
Characteristic PG&E Pioneer
Customer
Benefit
SBP Rate - Usage SBP Rate SBP Rate Pioneer *
Generation Energy Export Credit Energy Export Credit Same Billing Monthly Monthly Same
Annual True Up -
Generation
Exceeds Usage
Reverses Energy Export
Credit for excess energy
generation No Reversal Pioneer +
Annual True Up -
Generation
Exceeds Usage Paid at the NSC rate
Paid at the NSC rate +
.005/kWh Pioneer
Locked-In EEC
pricing Offered Offered Same
Energy Export
Bonus Credit Yes
Yes-PG&E credits Pioneer
customers Same
* Historically Pioneer's generation rates have been at a discount to PG&E. + Pioneer may reconsider the 'No Reversal' option in the future.

CUSTOMERS RETURNING TO PG&E SERVICE AND ACCOUNTS CLOSURES Pioneer customers with SBP service may opt-out and return to PG&E service at any �me, subject to Pioneer and PG&E’s terms and condi�ons for return to PG&E service. Customers are advised that PG&E may perform a True-Up of their account for any PG&E charges at the �me of return to PG&E service. Customers returning to PG&E service or closing their PG&E account must request a review and reconcilia�on of their Pioneer account within 90 days of the end of their Pioneer PICf)NEER

COMMUNITY ENERGY

service for a Cash-Out payment or payments will be subject to forfeiture. This reconcilia�on and setlement will follow Pioneer’s Annual True Up process and any reconciled Cash-Out payment resul�ng in a check issued to the address provided by the customer.

UNCLAIMED PAYMENTS
If Cash-out payments remain unclaimed, Pioneer will follow the requirements of Government Code Sec�on 50050-50057 et. seq. regarding the handling of unclaimed funds.

TRANSITION OF TEMPORARILY ASSIGNED NEM 2.0 CUSTOMERS
For the interim period before the PG&E SBP ‘go live’ customers subject to the SBP are billed as NEM 2.0 customers and will transi�on to SBP a�er the PG&E ‘go live’ date. The �ming of that transi�on will be subject to the CPUC’s considera�on and approval of PG&E’s implementa�on delay request. The annual true up for these NEM 2.0 customers that transi�on to SBP will occur at their date of transi�on to SPB or a�er their first 12 months of NEM 2.0 is completed, whichever is sooner. These customers will be reconciled at the NEM 2.0 (NEM Policy) true up process and then be enrolled at the SBP rate. Once ac�ve at the SBP rate these customers will also be included in the SBP annual true up process, typically in the March/April billing period.

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Staff Report – Item 3
To: The Governing Board
From: Donald Eckert Jr., Executive Director
Item 3: Adopt Resolution Authorizing a Rate Adjustment in 2024 Date: 12/14/2023

RECOMMENDATION
Adopt Resolution approving implementation of Pioneer Community Energy’s (“Pioneer”) Customer Generation Rate changes effective January 1, 2024.

AUDIT & FINANCE COMMITTEE RECOMMENDATION
At the December 6, 2023, Audit & Finance Committee meeting, the committee received a presentation from staff the current state of power supply market and expected changes in the Power Charge Indifference Adjustment (“PCIA”) and Pacific Gas & Electric’s (“PG&E”) generation rates for 2024 from the November Annual Electric True-up report. The committee then evaluated three options, as presented in this report, for Pioneer rate adjustments in 2024 and voted unanimously for the ‘Balance’ option.

BACKGROUND
Pioneer’s current rates were implemented in January 2023 based on the Board direction from the December 15, 2022, Board meeting.

There are three factors that will influence rate setting for Pioneer:

1. Power Supply Costs. Pioneer must set rates to cover its cost of service. As the Board was apprised through the presentation of the Impact Assessment Study when considering expansion into Nevada County, both Resource Adequacy and Renewable Energy are very expensive due to short supply and increasing demand. The following graphs illustrate those markets compared to last year:

Agenda Item: 3 Agenda Date: 12/14/2023

2. PG&E’s Generation Rate – PG&E’s generation rate is expected to increase by 20+% in 2024. PG&E experiences the same market pressures on resource adequacy and renewable energy as Pioneer or any other load serving entity in the state.

3. PCIA – The PCIA will be a non-factor in 2024 as the PCIA has an inverse relationship with market prices.

The PCIA is adjusted each year and benchmarked to the market. When power supply prices are high, the value of PG&E’s assets embedded in the exit fee are worth more resulting in downward pressure in the rate. The table below shows the PCIA for vintage year 2017 (“Placer”), 2021 (“El Dorado”), 2023 “Nevada City & Grass Valley”):

ANALYSIS & DISCUSSION
Rate setting for a Community Choice Aggregator (“CCA”) is unique from traditional utility ratemaking due to a CCA’s having a defined service territory but not a captive customer base.

Customers can opt out of our service territory, so rate setting includes consideration of not just the CCA’s revenue needs but also how competitive its rates are compared to the incumbent Investor-Owned-Utility.

Rate design principals should include:

1. Revenue sufficiency – Rates must cover operating expenses, any debt service requirements, and prudent reserves.

2. Rate competitiveness – Rates must allow Pioneer to successfully retain and attract customers.

3. Rate stability – Rate changes should be minimized to reduce customer bill impacts.

4. Customer understanding – Rates should be simple, transparent, and easily understood.

5. Equity among customers – Rate differences among customers should be justified by factors such as usage characteristics and cost of service.

The following are three options for the Board to consider in rate setting for 2024:

Option 1 – ‘Maintain Discount’
Pioneer’s current rates support at least a 15% discount compared to PG&E’s generation rate. Under this option, Pioneer would adjust their rates to maintain at least a 15% discount compared to PG&E’s generation rate in 2024. This option is not recommended. While this option does provide the most ratepayer savings compared to other options and is sustainable for Fiscal Year 2025, Vintage
Current Rates
($/kWh)
New Rates
($/kWh) Nominal Change % Change
Placer $0.00400 $0.01009 $0.00609 152%
El Dorado $0.00281 $0.00624 $0.00343 122%
NC/GV $0.01412 $0.00870 $0.00542 -38%
Agenda Item: 3 Agenda Date: 12/14/2023

Pioneer’s reserves begin to erode in Fiscal Year 2026 and beyond prompting a more server rate correction in the future.

The following table and graphs show the expected monthly bill with this option for a residential E-1 customer based on 500 kWh/month, the impact to operating income based on projected cost:

Option 2 – ‘Balance’
This option has followed the Board’s direction for the past two years in rate setting where a balance between ratepayer savings and contributions to reserves is achieved. The following table and graph will show significant ratepayer savings will be realized while the utility preserves its reserve over the next three years:

E-1 Residential
(Based on 500kWh/Month
Usage)
Placer El Dorado NC/GV PG&E
Bundled
Generation Rate ($/kWh) $0.14050 $0.14050 $0.14050 $0.16847 *PG&E Delivery Rate ($/kWh) $0.21515 $0.21515 $0.21515 $0.21515 PG&E PCIA/FF ($/kWh) $0.01009 ($0.00624) $0.00870 $0.00870 Total Electricity Cost ($/kWh) $0.36574 $0.34941 $0.36435 $0.39232 Average Monthly Bill ($) $182.87 $174.71 $182.18 $196.16 *PG&E Current Delivery Rate used for illustrative purposes $25,000
$20,000
$15,000
$10,000
$5,000
$0
$5,000
$10,000
$15,000
FY 25 FY26 FY27
$ in Millions
Contribution Margin
E-1 Residential
(Based on 500kWh/Month
Usage)
Placer El Dorado NC/GV PG&E
Bundled
Generation Rate ($/kWh) $0.15086 $0.15086 $0.15086 $0.16847 *PG&E Delivery Rate ($/kWh) $0.21515 $0.21515 $0.21515 $0.21515 PG&E PCIA/FF ($/kWh) $0.01009 ($0.00624) $0.00870 $0.00870 Total Electricity Cost ($/kWh) $0.37610 $0.35977 $0.37471 $0.39232 Average Monthly Bill ($) $188.05 $179.88 $187.35 $196.16 *PG&E Current Delivery Rate used for illustrative purposes Agenda Item: 3 Agenda Date: 12/14/2023

Option 3: ‘Balance Plus’
This option is more conservative than the ‘Balance’ option by setting a rate that shows Pioneer at a slightly better than break-even in Fiscal Year 2027 as the following table and graph will show:
$5,000
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
FY 25 FY26 FY27
$ in Millions
Contribution Margin
E-1 Residential
(Based on 500kWh/Month
Usage)
Placer El Dorado NC/GV PG&E
Bundled
Generation Rate ($/kWh) $0.15330 $0.15330 $0.15330 $0.16847 *PG&E Delivery Rate ($/kWh) $0.21515 $0.21515 $0.21515 $0.21515 PG&E PCIA/FF ($/kWh) $0.01009 ($0.00624) $0.00870 $0.00870 Total Electricity Cost ($/kWh) $0.37854 $0.36221 $0.37715 $0.39232 Average Monthly Bill ($) $189.27 $181.11 $188.58 $196.16 *PG&E Current Delivery Rate used for illustrative purposes $0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
FY 25 FY26 FY27
$ in Millions
Contribution Margin
Agenda Item: 3 Agenda Date: 12/14/2023

Summary and Recommendation
Staff does recommend Option 2 – ‘Balance’. This option is consistent with the Board strategy for the past few years and generates significant savings while also maintaining financial stability for Pioneer over the next three years. The table below summarized the options:

Next Steps
The direction given regarding rates are based on PG&E’s most recent filings. If the actual rates released by PG&E in late December land at or near the assumptions used for this discussion, then staff would proceed with the rate changes based on the Board’s direction and the rate adjustments would become effective January 1, 2024, or within thirty days of when the actual rates are released to give lead time for our data management consultant to implement. Subsequently, staff would present the new rate schedules at the following Board meeting.

If the actual rates are significantly different than expected, staff will not make any changes and apprise the Board at the January meeting and reset the direction.

STRATEGIC PLAN
Approval of a rate adjustment is consistent with and supports two of Pioneer’s adopted Strategic Priorities:
• Quality in Service – Pioneer’s mission to power the communities we serve with competitive rates, reliable service, and a choice in energy options comes from the commitment to quality service. • Financial Stability & Strategic Growth – Pioneer operates in a manner that ensures financial stability and delivers customer value.

FISCAL IMPACT
The recommended ‘Balance’ option (Option #2) would yield ratepayer savings of $40.2 million in 2024 while protecting the utility’s reserves through fiscal year 2027.

ATTACHMENTS

1. Resolution authorizing implementation of Pioneer’s Customer Generation Rate changes effective January 1, 2024
Option Placer El Dorado NC/GV Savings FY25 FY26 FY27
Maintain Discount 15% 24% 16% $57.6 $13.2 $12.0 $19.0
Balance 9% 19% 10% $40.2 $30.9 $5.9 $0.9
Balance Plus 8% 17% 9% $35.9 $35.3 $10.2 $3.5
$ in Millions
Discount to PG&E Contribution Margin
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 December 14, 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 (“Pioneer”) was formed for the purpose of providing local control of energy resources, to provide competitive and stable rates, and to provide programs to foster economic development, energy efficiency, and resource conservation; and WHEREAS, Pioneer has the authority to aggregate electric load to purchase and supply electricity for customers within its jurisdiction; and
WHEREAS, Pioneer has provided electric generation service to its customers since initiating service on February 1, 2018; and
WHEREAS, Pioneer has a need to adopt customer generation rates that are competitive and contribute to Pioneer’s cash reserves to allow Pioneer to respond to risk, and provide competitive and stable rates; and
WHEREAS, on December 15, 2022, the Governing Board adopted Resolution No. 2022-33 which approved the most recent customer generation rates that are currently in effect; and WHEREAS, due to the expected changes in the Power Charge Indifference Adjustment (“PCIA”), and the expected significant increase in PG&E’s customer generation rates, and the expected increase to power supply costs for Pioneer, and for the reasons described in more detail in the agenda report, an increase is necessary to Pioneer’s customer generation rates that also results in a significant discount to PG&E’s customer generation rate; and In the matter of: APPROVE IMPLEMENTATION OF

PIONEER GENERATION RATE CHANGES
EFFECTIVE JANUARY 1, 2024
Resolution 2023-___
December 14, 2023
2 WHEREAS, on October 21, 2021, the Governing Board adopted a Reserves Policy that considers operating costs, power supply expenses, power supply market fluctuations, and debt service to determine a Cash Reserve daily liquidity target of 160 days to be reached over three to five years; and
WHEREAS, the September 2022 heat wave resulted in Pioneer’s days of liquidity to decline 65 days in a one-week period, demonstrating the critical importance of an adequate Reserve; and WHEREAS, the Reserve Policy identifies that less than 90 days of cash liquidity should trigger a re-evaluation of rates until target cash balances are restored; and WHEREAS, the Audit and Finance Committee reviewed and discussed rate adjustment scenarios on December 6, 2023; and
WHEREAS, on December 14, 2023, the Board conducted a public hearing and reviewed, considered, discussed rate adjustment scenarios; and
WHEREAS, all the rate adjustment scenarios considered by the Board offered Pioneer customers savings compared to the PG&E Preliminary Annual Electric True-Up (AET) generation rates published November 15, 2023.

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. Upon the release of PG&E’s final Annual Electric True-Up customer generation rates, the Executive Director is hereby authorized to amend Pioneers’ current Electric Generation Rates Schedule authorized by Resolution 2022-33 so that Pioneer’s customer generation rates will be at least 9% lower than the sum of PG&E’s generation rates and the 2017 Vintage PCIA.

3. If the final approved PG&E customer generation rates result in Pioneer’s ability to offer a larger discount than stated in Section 2 above while maintaining the ‘Balance’ Scenario that balances customer savings and the contribution to Pioneer’s reserve, the Pioneer rate adjustment discount in Section 2 above will be increased accordingly.

4. If the final approved PG&E customer generation rates are material less than the estimated Annual Electric True-Up and it would cause the discount stated in Section 2 above to cause Pioneer’s 2023 customer generation rates to be adjusted downward, a Pioneer rate adjustment will be deferred until the Board is able to reconsider the rate adjustments.

5. Pioneer’s electric generation rates, as adjusted by the Executive Director per Sections above, shall become effective on January 1, 2024, or within 30 days after PG&E releases its final 2024 customer generation rates, whichever is later.

6. Pioneer’s adjusted electric generation rates shall be set forth in the 2024 Electric Generation Rates Schedule. The Executive Director shall provide a copy of the 2024 Electric Generation Rates Schedule to the Governing Board at its first meeting after the 2024 electric generation rates are implemented.

Resolution 2023-___
December 14, 2023
3 7. Resolution No. 2022-33 is hereby rescinded upon the effective date of the updated 2023 Electric Generation Rates Schedule.

Staff Report – Item 4
To: The Governing Board
From: Sam Kang, Chief Operating Officer
Item 4: Update on Assembly Bill 843 Implementation Status Date: 12/14/2023

RECOMMENDATION
Receive an update on Assembly Bill (AB) 843 implementation status.

BACKGROUND
Biomass energy is a key resource priority for Pioneer Community Energy (Pioneer) as evidenced in its 2022 Integrated Resource Plan1, as well as its Mission, Vision, and Values for providing reliable electric service2. In order to reduce the cost of purchasing biomass energy, Pioneer co-sponsored and led the effort to pass Assembly Bill 843 (on a unanimous, bipartisan basis) in the 2021 legislative session. AB 843 leveled the playing field by allowing community choice aggregators (CCAs) like Pioneer to participate in the Bioenergy Market Adjusting Tariff (BioMAT) program that only investor-owned utilities (IOUs) had access to. All load-serving entities (LSEs), including CCAs have been paying into this program that covers above-market costs related to biomass energy, yet none have been able to participate in it.

Since AB 843 passed in 2021, Pioneer has been working feverishly with the California Public Utilities Commission (CPUC), California Community Choice Association (CalCCA), and other CCAs to get the bill implemented so that Pioneer can purchase bioenergy pursuant to the BioMAT program. After almost two years after the bill was passed, the CPUC finally issued a “DECISION IMPLEMENTING ASSEMBLY BILL 843 - SETTING RULES TO ENABLE

COMMUNITY CHOICE AGGREGATORS TO PARTICIPATE IN THE BIOENERGY MARKET ADJUSTING TARIFF PROGRAM” (Decision 23-11-084) on November 30, 2023, for implementing AB 843.

ANALYSIS & DISCUSSION
AB 843 Overview
AB 843 allows CCAs to participate in the BioMAT program and seek cost recovery on the same terms as IOUs for procurement from bioenergy facility with an effective capacity of 5 MW (delivering no more than 3 MW to grid at any time).
• It remedies prior cost shift of unbundled CCA customers paying for program for which CCAs could not participate
• It allows CCAs to contract for the 202.5 MW of bioenergy that IOUs have not yet contracted for from the overall 250 MW allocation
• Requirements for CCA participation
o Open capacity exists within allocation category (PG&E had an initial allocation of 111 MW and has 72 MW still available)
o Standard tariff and contract consistent with IOU program documents o Payment based on pre-determined BioMAT market price
1 https://pioneercommunityenergy.org/about-us/key-documents/ 2 https://pioneercommunityenergy.org/about-us/ Plf)NEER

COMMUNITY ENERGY
Agenda Item: 4 Agenda Date: 12/14/2023

Final Decision Key Points
The key terms of Decision 23-11-084 were generally favorable to CCAs in that • CCAs participate on the same terms as IOUs
• The Accion website (currently used by the IOUs) is the platform for all participating LSEs • The third-party administrator (TPA) manages contracting que and other administrative tasks • CCA cost recovery (including power purchase agreement (PPA), Accion, and TPA costs) through IOU’s public purpose program charge
• CCA filings (Tier 3 Advice Letters/Rule 2 Applications) to ensure cost effectiveness/prudent contract management
Implementation Schedule from Decision
The implementation of the BioMAT program is on a very aggressive schedule with many things to deliver in a short amount of time. The following are the envisioned key dates and deliverables based on the decision:
• By 12/30/2023 (within 30 days of Final Decision):
• IOUs submit Tier 2 Advice Letter (AL) modifying their applicable tariffs to implement the decision
• By 1/29/2024 (within 60 days of Final Decision):
o CalCCA submits Tier 2 AL to request approval of pro forma program documents, including:
 Tariffs
 Power purchase agreement
 Program participation request forms
 BioMAT program website and portal development contract with Accion  Independent TPA contract
 Initial balancing account statements
 Non-bypassable charge rate schedules
• Each participating CCA will contract directly (1) with Accion to develop webpages and (2) directly with a TPA
• CalCCA consults with IOUs on behalf of CCAs to solicit contract terms and develop individual CCA BioMAT websites with Accion (and a central BioMAT page)  Each participating CCA will contract directly with Accion to develop their webpages • CalCCA consults with IOUs on behalf of CCAs to solicit contract terms to hire an independent TPA
 Each participating CCA will contract directly with TPA to support integration of such services with individual webpages
• CCAs submit joint CCA BioMAT implementation Tier 2 Advice Letter to request CPUC approval of standard CCA BioMAT documentation (see above), with redline comparing them with IOUs tariffs (as proposed to be modified by IOUs to implement the decision)  CCAs that elect to participate later shall submit a Tier 2 AL with the standard program documentation
• By 2/1/2024, and annually thereafter
• Each CCA participating in BioMAT submits Tier 3 Advice Letter seeking CPUC approval of forecasted revenue requirement reflecting BioMAT net costs (including PPA, Accion costs, TPA costs)
 CCAs and IOUs must meet and resolve any outstanding issues prior to filing Tier 3 AL  After Commission approval, IOUs include CCA costs in October update  If Commission Resolution approving CCA BioMAT costs is:
• Not issued within 20 days before IOUs file October update, IOUs will not include CCA BioMAT costs in Energy Resource Recovery Account (ERRA) forecast application;
• Issued at least 10 days before IOUs file annual year-end electric true-up or rate change advice letter, IOUs to include costs in ERRA forecast application; Agenda Item: 4 Agenda Date: 12/14/2023

• Not issued within 10 days before IOUs file annual year-end electric true-up or rate change advice letter, CCA BioMAT costs will be recorded in relevant IOU’s annual year-end electric rate change or true-up ALs but not reflected in rates until Commission approval of CCA BioMAT costs via Resolution. • By 2/28/2024 (within 90 days of Final Decision)
• Central Accion webpage and standard framework for CCA webpages completed • Individual CCA BioMAT Accion webpages completed within 90 days of a CCA’s election to participation in BioMAT program
• By 9/1/2024, and annually thereafter
• CCA files application to establish compliance with prudent manager standard • By 4/30/2025, and annually thereafter
• CCAs submit invoices to request payment for Commission-approved BioMAT revenue requirement (after approval of IOU ERRA Forecast application in December of prior year) Potential BioMAT Project
Pioneer is working with Wisewood Energy and Western Placer Waste Management Authority (WPWMA) in developing a 3-5 MW biomass facility on WPWMA premises and partially using WPWMA wood waste as feedstock.

Various approaches are being explored including net metering of behind-the-meter power sales to WPWMA facility combined with opportunities at the planned Buzz Oates Placer Commerce Center related to EV truck charging sales, thermal energy sales, and/or monetization of environmental attributes for SB 1383 organic procurement requirements.

Next Steps
Pioneer will be working closely with all interested parties including the CPUC, CalCCA, IOUs, and other CCAs in preparing and submitting all required information per the implementation schedule. Staff will come back to the Board in January for approval of the BioMAT tariff and associated pro forma contracts necessary for implementation.

In tandem, Pioneer will continue working with Wisewood and WPWMA in developing a biomass project at the WPWMA site pursuant to the requirements of AB 843.

FISCAL IMPACT
None

ATTACHMENTS
None

Staff Report – Item IV-B
To: The Governing Board
From: Donald Eckert, Executive Director
Item IV-B: Executive Director Report
Date: 12/14/2023

PERSONNEL
We are excited to welcome Lisa DeLaby to the team on November 27th as our new Community Outreach Manager. Lisa will be leveraging her extensive background in public relations, communications, community relations, marketing, and advertising.

With more than 20 years of experience as a director of public relations and marketing in higher education, she has a strong background serving diverse, local communities. Outside of work, she enjoys spending time with family and friends, playing pickleball, RVing, and paddle boarding. Lisa holds a bachelor’s degree from CSU, Chico in information and communication studies with a double major in public relations and journalism.

EXECUITVE DIRECTOR AGREEMENTS EXECUTED (NON-POWER SUPPLY) There are no items to report.

PLACER FOOD BANK
Pioneer staff used the afternoon of December 5th to volunteer at the Placer Food Bank. We received a tour of the facility and background information and helped prepare produce for shipping to various food distribution points. Staff left very impressed with the organization and look forward to volunteering again.

Agenda Item: IV-B Agenda Date: 12/14/2023

STANDARD & POORS (“S&P”)
Staff presented to representatives of S&P as part of the process for Pioneer to obtain an investment grade credit rating. A credit rating will help Pioneer in its power supply costs by avoiding collateral postings, assist in credit negotiations and attract more financially secure power suppliers resulting in better pricing. We anticipate receiving an indicative rating before the end of the year.

NEVADA CITY/GRASS VALLEY EXPANSION
Pioneer will be serving the City of Grass Valley and Nevada City at the start of the new year. As of the date of this report, we have a 99% participation rate.

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (“CAISO”) TOUR
We tentatively have January 31st as our tour date of CAISO with four Board Members confirming. If anyone else is interested in attending, please contact Teresa. Details of the tour will be sent out in early January.

COMMUNITY ADVISORY COMMITTEE (“CAC”)
The CAC convened on November 29th and received a presentation from staff on the recent Board passed Feed-In Tariff Program. The next scheduled CAC meeting will be in December before the holiday break.

OFFICE CLOSURE
As a reminder, Pioneer’s office will be closed during the week of Christmas to New Years. However, staff will be available for customer support in preparation for our launch into City of Grass Valley and Nevada City.

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

Presentations and Relevant Meetings attended by the Executive Director

1. Participated in CalCCA Weekly/Monthly Board meetings

2. Presented to Standard & Poor’s Credit Rating Agency

3. Participated in the Mountain Mandarin Festival in Auburn

ATTACHMENTS

1. Agenda Planning Document

2. Monthly Legislative and Regulatory Report

3. Monthly Public Outreach Report
Counterparty Name
Execution
Date Type Product Start Date End Date
Notional
Value
NRG Business Marketing 10/12/2023 Sell Import Allocation Rights 6/1/2024 9/30/2024 $ 216,000 Dynasty Power Inc. 10/17/2023 Sell Import Allocation Rights 9/1/2024 9/30/2024 $ 55,500 Agenda Planning Document – Pioneer Community Energy Updated 12-8-2023 C: Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates

BOARD OF

DIRECTORS
DECEMBER 14, 2023
3:00 PM
(Post Agenda: December 8)
JANUARY 18, 2024
3:00 PM
(Post Agenda: January 12)
FEBRUARY 15, 2024
3:00 PM
(Post Agenda: February 9)

IN THE FUTURE
General Function I Closed Session Closed Session CAISO facility tour (1/31/2024 – quorum?) Agenda Review Selection of Officers Agenda Review
Agenda Review
Consent
1a
Minutes for Approval
NOVEMBER 16, 2023
Minutes for Approval
DECEMBER 14, 2023
Minutes for Approval
JANUARY 18, 2024
1b Receive Draft Financials: OCT 2023
(Koehn)
Receive Draft Financials: NOV 2023
(Koehn)
Receive Draft Financials: DEC 2023
(Koehn)
1c RES Contract (RWG) (Koehn) RES Adopt 2024 Governing Board Meeting Schedule (Eckert)
1d Approve Updated Conflict of Interest
Code (Eckert)
1e
1f
Regular
2 RES Solar Billing Plan Tariff Policy
(Action-Koehn)
Annual Audit Report (Discussion-Koehn)
Pisenti&Brinker
LMS - Programs update (Action – Stassi-Vanacore)
WPWMA Biomass Plant update
(Discussion-Kang)
3 Public Hearing - RES Rates 2024
(Action-Eckert) PEA
RES 2nd Amended & Restated JPA
(Action-Eckert)
Mid-year Budget Review (Koehn) Electrum contract update Greenlite (list of locations > ED Report)
4 AB 843 Update (Discussion-Kang) Update on Prepay Transaction (Discussion-Eckert)
Strategic Plan (Discussion-Eckert)
5 RES BioMAT PPA (Action-Kang) Committees-affirm members (Action-Eckert)
6 RES Participate.Energy contract (Action – Stassi-Vanacore) Committees-fill any vacancies (Action – Eckert)
RES Amendment No. 3 to ED
Employment Agreement (Action-Eckert)
General Function II
IV-B
Executive Director’s Report
Reports: Leg/Reg; Community Engagement;
introduce new Community Outreach
Manager;
Executive Director’s Report
REG Reports: Leg/Reg; Community
Engagement;
Qtrly updates: Strategic Plan Objectives;
Sponsorship Activity; Income Graduated
Fixed Charge;
Executive Director’s Report
REG Reports: Leg/Reg; Community
Engagement;
Executive Director Report-QTRLY Updates
JAN – APR – JULY – OCT
 Strategic Plan Objectives
 Sponsorship Activity
 Income Graduated Fixed Charge
IV-C Informational Items
Glossary of Terms
Informational Items
Glossary of Terms
Informational Items
Glossary of Terms
Agenda Planning Document – Pioneer Community Energy Updated 12-8-2023 C: Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates

AUDIT/FINANCE COMMITTEE
WEDNESDAY, 1/3/2024
11:00 AM
in-person & remote locations
DATE
in-person & remote locations IN THE FUTURE
Greg Janda, Chair
Holly Andreatta
John Hidahl
Gary Petersen
Select Officers
Audit Update – Final Report
Post/Distribute on FRIDAY, 12/22

ENERGY PROCUREMENT REVIEW

AD HOC COMMITTEE
DATE
zoom only DATE IN THE FUTURE
John Hidahl, Chair
Greg Janda, Vice Chair
Amanda Cortez
Alice Dowdin Calvillo
2024 – Q1

EXPANSION

AD HOC COMMITTEE
DATE
zoom only DATE IN THE FUTURE
Jim Holmes, Chair
Alice Dowdin Calvillo, Vice Chair
David Yarbrough
2024 – Q1
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 (<6) Ad Hoc Member Limit fewer members than majority of board (<6)

Attachment: Legislative and Regulatory Update
Date: 12/14/2023
Legislative Affairs
On November 21, 2023, Assembly Speaker Robert Rivas announced changes to the Chairs of the Standing Committees for the 2023-24 Regular Session. These changes will be effective January 22, 2024. The most notable changes include:

Appropriations- Assembly Member Buffy Wicks (Oakland) will replace Assembly Member Chris Holden (Pasadena), who is termed out in 2024 and currently running for L.A County Supervisor.

Budget- Assembly Member Jesse Gabriel (San Fernando Valley) will replace Assembly Member Phil Ting (S.F.) who is termed out in 2024.

Natural Resources- Assembly Member Isaac Bryan will replace Assembly Member Luz Rivas, who is running for the 29th Congressional Seat to replace Tony Cardenas.

Utilities and Energy- Assembly Member Cottie Petrie-Norris (Irvine) will replace Assembly Member Eduardo Garcia (Coachella), who will become the Chair of Environmental Safety and Toxic Materials.

While the Senate made the decision that Senator Mike McGuire (Sonoma County) will replace Senator Toni Atkins (San Diego) as president pro tempore in August of this year, the transition will take place sometime in 2024. It is likely that any committee changes to the Senate Standing Committees will be announced after the transition.

As a reminder, the Legislature reconvenes on January 3.

Regulatory Proceedings
Below is a summary table of the key issues, followed by further detail on activities since our last Board Meeting on a few ongoing priority Pioneer regulatory Proceedings and matters. More updates will follow at future Board meetings as regulatory proceedings and matters evolve.

Proceeding Issue Pioneer Position
R.22-07-005 Order Instituting Rulemaking
(OIR) to advance Demand
Flexibility through electric rates
Limit negative impacts of the
Income Based Graduated Fixed
Charge and educate Pioneer
Board and customers prior to
the rollout
R.22-10-010 Order Instituting Rulemaking to
Implement AB 843 (2022) –
The Bioenergy Adjusting Tariff
Program
Expeditiously implement AB
843 to allow CCA access to the
BioMAT program for future
subsidies for biomass
procurement
A.20-02-009; A.21-03-008;
A.21-06-001; A.22-05-029
PG&E 2019 Energy Resource
Recovery Account (ERRA)
Compliance Application; PG&E
2020 ERRA Compliance
Application; 2021 ERRA
Compliance Application; 2022
ERRA Compliance Application;
Reduce the ERRA impact on the
PCIA; increase data
transparency from the IOUs
Attachment: 2 Agenda Date: 12/14/2023

2023 ERRA Compliance
Application; 2023 ERRA
Forecast Application; 2024
ERRA Forecast Application
R.20-08-020 Rulemaking to develop a
successor to existing Net
Energy Metering (NEM) tariffs
and to review and refine
existing NEM tariffs
Mitigate impacts to Pioneer NBT
customers and inform
customers of upcoming changes
to the program
R.21-03-011 Provider of Last Resort (POLR)
Order Instituting Rulemaking
Limit the impacts of changes to
the Financial Security
Requirement (FSR)
R.17-09-020; R.19-11-009;
R.21-10-002
Resource Adequacy (RA)
Reform & Implementation
Tracks
Refine the current RA Program
construct; reduce volatility of
RA prices; increase RA
procurement availability and
grid reliability
R.18-12-005 Utility De-energization, Public
Safety Power Shutoffs (PSPS),
and Enhanced Powerline Safety
Settings (EPSS)
Reduce impacts of PSPS and
EPSS events; increase
coordination and
communications with IOUs to
ensure public safety during de-energization; limit PSPS and EPSS impacts on CCA load
scheduling
CEC - OIR – 21-OIR-03, 23-
LMS-01
Load Management Standards
(LMS)
Ensure Pioneer Maintains
compliance with CEC mandates
and requirements
AB 843 OIR:
• October 20, 2022- The OIR was opened to examine issues in the implementation of AB 843 which Pioneer and other CCAs championed in 2021.
• April 28, 2023- Workshop held.
• August 28, 2023- Meeting between CalCCA and IOUs.
• October 10, 2023- Proposed Decision. Largely a win for CCAs. This decision is not final until the CPUC hears and votes to approve it.
• November 6, 2023- CalCCA, Joint IOUs, and Public Advocates Office filed reply comment to the PD. • November 9, 2023- CalCCA attended an ex parte meeting with Commissioner John Reynolds’ office concerning the BioMAT PD.
• November 16, 2023- The CPUC delayed the vote on a decision. • November 20, 2023- Possible vote and decision on the implementation of AB 843.

Demand Flexibility:
• June 30, 2022- AB 205 passed giving the CPUC the authority to approve a pricing structure that incorporates an Income Based Graduated Fixed Electricity Charge (IGFC). • July 14, 2022- The Commission issued an OIR to begin this proceeding to establish demand flexibility policies and modify electric rates to advance the following objectives: 1) enhance the reliability of California’s electric system; 2) make electric bills more affordable and equitable; 3) reduce the curtailment of renewable energy and greenhouse gas emissions associated with meeting the state’s future system load; 4) enable widespread electrification of buildings and transportation to meet the state’s climate goals; 5) reduce long-term system costs through more efficient pricing of electricity; and 6) to enable participation in demand flexibility by both bundled and unbundled customers.

Attachment: 2 Agenda Date: 12/14/2023

• July 31, 2023- Parties submitted Comments on the IGFC Implementation Pathways considering the ALJ Ruling’s questions.
• August 21, 2023- CalCCA submitted Reply Comments to refute parties’ arguments regarding including the PCIA or Competitive Transition Charge (CTC) as fixed costs eligible for inclusion in the IGFC. • November 3, 2023- Track A (IGFC)- CalCCA filed a reply brief continuing to refute party proposals that the PCIA be included in the IGFC and noting that the parties advocating for inclusion of the PCIA have not addressed the arguments put forth by CalCCA.
• December 2023- Track B (Demand Flexibility)– CPUC likely to issue a PD on expanded pilots. All comments and proposed budgets have been submitted in response to the Staff Proposal and ALJ Rulings regarding the expanded demand flexibility pilots.

Net Billing Tariff (NBT):
• December 15, 2022- The CPUC issued a PD that was voted out unanimously. New solar customers that sign up after April 14, 2023, will be placed on NBT. 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.
• August 2, 2023- The CPUC issued a Proposed Decision on the remaining issues in the NBT proceeding, including virtual NEM, enhanced consumer protection, and fuel cell participation. • August 8 ,2023- Comments were filed by Joint CCAs: SDCP, PCE, Pioneer, SCP, RCEA, and SJCE. The comments argued that the Proposed Decision, with some adjustments, can improve bill clarity for NEM customers and future NBT customers.
• September 14, 2023- A California appeals court will hear a lawsuit seeking to overturn the CPUC’s rooftop solar decision which would significantly reduce the credits customers receive. • September 16, 2023- There was a letter signed by members of the Legislature on the NEM program for agricultural users.
• October 26, 2023- Joint CCAs have held ex parte meetings with the CPUC, and President Reynolds, who recommended meeting with the Energy Division.
• October 30, 2023- Energy Division released a Proposed Resolution approving the IOUs NBTs, with modifications.
• November 2, 2023- CPUC has delayed their decision implementing Virtual Net Energy Metering (VNEM) and other aspects of NBT until November 16, 2023, at the earliest. • November 16, 2023- CPUC adopted revision 2 of the VNEM Decision.

PG&E ERRA Compliance and ERRA Forecast:
• The ERRA Proceedings act as a review of an IOU’s prior year portfolio management and accounting and seeks to identify errors and discrepancies between PG&E’s revenue requirements vis-à-vis collected revenues through the IOUs’ General Rate Case (GRC) which ultimately affects CCA rates through the Power Charge Indifference Adjustment (PCIA).
• May 14, 2023- PG&E’s 2023 – 2024 ERRA Forecast and Testimony was released. • June 1, 2023- NewGen sent over the new rate forecast spreadsheet. The forecast looks good with the PCIA remaining negative over many vintages, but this will change before the October Update. • June 16, 2023- Keyes and Fox filed a Protest to PG&E's Forecast Application. • August 10, 2023- CalCCA filed a Protest to PG&E’s ERRA Trigger Application proposing a rate increase in November to correct and account for under-collections.
• September 6, 2023- CalCCA provided Testimony on the 2024 PG&E ERRA Forecast case and touched upon the fixed generation cost issue.
• October 16, 2023- PG&E’s October Update to its 2024 ERRA Forecast came out. Energy prices have softened relative to PG&E’s original forecast (which would, all else equal, cause PCIA rates to increase), but RA and RPS benchmarks have increased significantly since PG&E's filing (dampening the impact of energy prices).

All told, forecast rates increased relative to the original forecast across the board, but forecast rates remain negative for vintages 2021 and later.

Attachment: 2 Agenda Date: 12/14/2023

• November 1, 2023- Keyes and Fox submitted comments on PG&E’s ERRA Trigger proposal and comments on PG&E’s October update.
• November 16, 2023- The CPUC unanimously approved the Alternate Proposed Decision and indicated that “the decision balances a myriad of competing interests- affordability, feasibility, safety, and reliability.” PG&E requested $15.4 billion for 2023 and the decision reduced that amount by $1.8 billion to $13.5 billion.

This is an 11% increase from the authorized 2022 revenue requirement. For the typical residential customer, their combined monthly electric and natural gas bill will increase by $32.62 or 12.8%, compared to PG&E’s request of $38.73 or 17.9% increase.
• January 2024- PG&E evidentiary hearings.

Resource Adequacy:
• May 25, 2023- The CPUC issued a PD barring non-compliant LSEs from expansion for two calendar years following a system RA deficiency.
• June 14, 2023- CalCCA filed Opening Comments recommending the CPUC fully reject the PD’s restrictions on LSE expansion due to RA deficiencies and modify the RA deficiency penalty. • June 19, 2023- CalCCA filed reply comments on June 19, 2023. • June 27, 2023- a Redlined PD was issued. The revisions included: adopting a one percent minimum threshold for RA deficiencies that would limit CCA expansions; clarifying that if an LSE “cures” its year-ahead RA deficiency in the month-ahead timeframe, the year-ahead deficiency will not be applied to the expansion requirement.
• June 29, 2023- The PD was adopted by the Commission.
• July 26, 2023- CalCCA and CCCE filed two Applications for Rehearing (AfR) of the decision to limit CCA expansion for two years due to uncured RA deficiencies. CalCCA’s PfR cited a lack of CPUC statutory authority to limit CCA expansion, and that it gives itself new unauthorized powers to needlessly discriminate against CCAs to prevent their growth; it also asserted, that without credible evidence, the CPUC determined that addition of new CCA load would be detrimental to grid reliability, and that the decision violates the CPUC’s legal requirement to apply RA enforcement measures in a nondiscriminatory manner, not just to CCAs.
• October 5, 2023- CalCCA filed a Petition for Writ of Review of Resolution E-5258 and D.23-08-052 over the decision with the First Appellate District.
• On September 19, 2023, PG&E and SCE submitted their annual CPE reports. PG&E is short RA for all months - up to 4,400 MW.
• October 12, 2023- The Commission opened the new RA proceeding through its Order Instituting Rulemaking (OIR). The OIR proposes the scope, schedule, and administration of this next RA proceeding. • November 9, 2023- CalCCA submitted comments recommending additional scoping items for the RA proceeding, including additional refinements to the RA program for the local RA CPE, compliance and penalty structure, SOD transactability, and RA import rules.

Utility Deenergization, PSPS, and EPSS:
• July 12, 2022-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 seek to treat EPSS events with the same regulations and oversight as Public Safety Power Shutoff (PSPS) events. • September 21, 2023- The CPUC approved a PSPS citation program for violations of the established PSPS guidelines.
• August 30-31, 2023- PG&E provided a post PSPS report. A total of 3,928 customers were deenergized. • October 10, 2023- The Joint CCAs, RCRC, and Joint Local Governments had a meeting with the Public Advocates Office to see if there is agreement on the need to further do more with regards to Fast Trips. The Public Advocates Office indicated that the CPUC and Office of Energy Infrastructure Safety are not inclined to act to regulate Fast Trips and that more data is needed. The Public Advocates Office is looking to submit a report at the end of the year showing the impact.

Attachment: 2 Agenda Date: 12/14/2023

Provider of Last Resort (POLR):
• October 2, 2019- SB 520 passed requiring the establishment of a Provider of Last Resort (POLR). As part of the proceeding to implement SB 520, the CPUC is seeking to establish new policies to plan for and prevent catastrophic failures in the event of an unplanned return en masse of CCA customers to IOU service.

Additionally, the CPUC will review and update existing procedures and policies for Financial Security Requirements (FSR), reentry fees, and LSE deregistration process and compliance requirements. • July 31, 2023- CalCCA's Reply Briefs were submitted and address PG&E’s proposal to modify the FSR to reflect two months of forecast energy costs, other parties’ recommendations on elements of the existing FSR calculation, mandatory contract assignments, financial monitoring, and the duration of POLR service. • December 2023- Possible decision to the proceeding. CalCCA is waiting for that expected PD. In anticipation of the PD, CalCCA will be holding ex partes with CPUC Commissioners' Offices to reiterate CalCCA’s position on financial monitoring to limit monitoring to LSEs for only those that are at financial risk of failure and to deny PG&E's proposal that the FSR be based on two months of energy costs. CalCCA has circulated their slide deck of issues to be discussed at the ex parte meetings.

CEC Load Management Standards (LMS):
• October 12, 2022- The CEC adopted the Load Management Standards regulation which requires the development of a statewide standard tool for authorized rate data access by third parties that is compatible with each IOU, large POUs, and large CCAs with the idea that electricity customers or their authorized third-party agents can look at rates that the customer is eligible to switch and allow the customer to change the customer’s current rate to rates they are eligible for. • June 8, 2023- CEC staff provided a schedule of the key LMS adoption and compliance dates. • August 1, 2023- Pioneer, through Calpine, uploaded its rates and will continue to work with Calpine on uploading all time dependent rates to meet deadlines.
• By April 1, 2024, all large CCAs are required to file their plan for compliance with all LMS regulations. • YubaNet
Marketing and Outreach Report
December 14, 2023
Notable Accomplishments
November marked the launch of Pioneer’s general awareness ad campaign that is running in tandem with the expansion campaign. Early indications are that site visit trends are shifting. Notably:
• 54% increase in visits to our home page
• New visitors to our website remained steady at 7,800. • Youtube videos that include our 5-year anniversary
motion graphic and multiple customer testimonials
increased visits to our site by more than 10,000%.

Our presence at the 30th Annual Mountain Mandarin Festival brought considerable customer interaction and positive
response to our expansion. During the course of the weekend, 6,500 premium items were given away, heightening our
visibility in the communities we serve.
• The November 1 5-Year Anniversary event was the place to be, with representation from area electeds, business partners, and other supporters.
• Our third mailer, encouraging customers to visit our
expansion page, answering frequently asked questions,
and providing additional information about billing was
delivered in November. The mailer drove readers to our
website, resulting in a 10% increase in visits to the “How to Read Your Bill” page.
• With the launch of our general awareness paid media we saw a large increase in impressions to over 4 million.
• Our Customer Care team had nearly 2,800 customer
interactions, always reaffirming our commitment to
excellent service.

November Highlights
Our team made significant progress in engaging and educating future customers. With just one month to go before service launch, the opt-out rate for Grass Valley and Nevada City is less than 1/10 of one percent, leading to optimism for a very participation rate.

Expansion
– Ads are running weekly in
multiple publications of
The Union newspaper.
– ~15,000 circulation
• Newsprint Ads
Google, paid social media and
banner ads with YubaNet are
running. Google and paid social
ads target our service area by zip
code and demographics of 18+
male and female.
• Paid Digital Advertising
– 225,781 impressions
– 61 clicks
VIEWS
17,667
100% of
total
USERS
7,773
100% of
total
Pioneer
Community
Energy |
Residential
3,070 1,831
Pioneer
Community
Energy |
Coming soon
to Grass Valley
& Nevada City
2,760 1,391
Understanding
your Bill 663 367
– Ads are running on
hyper-local KVMR radio,
which broadcasts to more than
50,000 listeners.
• Radio
• Mailer The third direct mailer was
sent to residents, businesses,
multifamily properties, mobile homes,
and mobile home parks.
– 182,540 impressions
– 1,336 clicks
• Google
– 245,086 impressions
– 1,406 clicks
• Paid Social Media
All efforts drive people to the
expansion webpage, the how to read
your bill page, or contact us. Each
page saw a notable increase in visits.

Notably, we experienced a 10%
increase to Understanding your Bill.

General Awareness
All elements of the general awareness campaign have launched. This is our largest investment in paid media Pioneer has made to date and includes newsprint, radio, television, out-of-home / bus shelters, Google Ads and paid social ads. Each component deployed at different intervals, and we will report in January after we have a full month of data with all channels working together. We continue to position Pioneer as committed to the community we serve with competitive rates, clear information and excellent customer service.
– Gold Country Media
Auburn Journal, Lincoln News
and Roseville Tribune
127,000 circulation
– The Mountain Democrat
55,000 circulation
• Newsprint Ads
Audacy Radio
Over the air
– KKDO 94.7
– KUDL 106.5 The End
– KSEG 96.9 The Eagle
– 792,000 impressions
Streaming
– 151,181 impressions

OTT/CTV
– 108,000 impressions
– 333 clicks/.31 CTR
iHeart Radio
– KFBK 93.1
– Talk 650 KSTE
– 230,000 impressions
Public Radio – Capital Public Radio
– 90.9 KXJZ
– 88.9 KXPR
– Banner Ads/App Ads/
Newsletter Ads
– 261,756 impressions
• Radio
• Out of Home
– Bus Shelters- El Dorado County
– 2.2 M impressions (beginning
December)
• Television
– KCRA 3
– 1.854 M Impressions
Google and paid social ads are
running
• Paid Digital Advertising
– 555,216 impressions
– 3,529 clicks
• Google
– 9,656 impressions
– 216 clicks
• Paid Social Media
Each ad in the series has new content
and drives customers to various
pages. December is the first full
month that all components will run
together. This month we drove to the
home page, and as a result, saw the
home page move back into the first
position in pages visited, We will
continue to track all website activity
and report each month on how our
ads impact visits to the website.
• Website Visits
VIEWS
17,667
100% of
total
USERS
7,773
100% of
total
Pioneer
Community
Energy |
Residential
3,026 1,826
Pioneer
Community
Energy |
Coming soon
to Grass Valley
& Nevada City
2,673 1,299
Pioneer
Community
Energy |
Green100
Renewable
1,553 809
The Pioneer team celebrated with our community at the
30th Annual Mountain Mandarin Festival held November
17-19. Customers enjoyed axe throwing and other
games. We distributed 6,500 premium items – getting
our name and logo out into the community. To receive a
give away customers engaged with our team in a
meaningful way.
• Grass Valley Community meeting
• Mountain Mandarin Festival
• Auburn Senior Center Field Day
Events Held or Attended
Our chatbot continues to consistently reduce the
monthly volume of calls to our call center. November
chatbot user sessions dropped slightly to 7,500
Integrating Digital Channels
October: 8,300 November: 7,500
Events Highlight
Pioneer at the Mountain Mandarin Festival
Website
Pioneer continues to see growth in the activity on our website. • We saw engagement with posts
featuring our staff actively involved
in local events, 5-years of savings,
local control and community
participations and captivating
content related to holidays or solar
events.

Social Media
Website Data
• 54% increase in visits to our home page
• Our mailer, inviting customers to visit the “how to read your bill” page resulted in a 10% increase in traffic.
• Our paid social ads are increasing visits to our website by 312% over last month.
• Our Youtube videos that include our 5-year anniversary motion graphic and multiple customer testimonials
increased visits to our site by over 10,000%.
– 1,344 Impressions
– 6 Clicks
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Pioneer Community Energy
Glossary of Terms
CAISO - California Independent System Operator - a non-profit independent system operator that oversees the operation of the California bulk electric power system, transmission lines and electricity market generated and transmitted by its members (~80% of California's electric flow). Its stated mission is to "operate the grid reliably and efficiently, provide fair and open transmission access, promote environmental stewardship and facilitate
effective markets and promote infrastructure development. CAISO is regulated by FERC and governed by a five-member governing board appointed by the governor.

CALCCA - California Community Choice Association -Association made up of Community Choice Aggregation {CCA) groups which represents the interests of California's community choice electricity providers.

CARB - California Air Resources Board - The CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change in California.

CEC- California Energy Commission
CPUC - California Public Utility Commission
C&I - Commercial and Industrial - Business customers
CP - Compliance Period -Time period to become RPS compliant, set by the CPUC {California Public Utilities Commission)
DA- Direct Access - An option that allows eligible customers to purchase their electricity directly from third party providers known as Electric Service Providers (ESP).

DA Cap- the maximum amount of electric usage that may be allocated to Direct Access customers in California, or more specifically, within an Investor-Owned Utility service territory.

DA Lottery - a random drawing by which DA waitlist customers become eligible to enroll in DA service under the currently-applicable Direct Access Cap.

DA Waitlist - customers that have officially registered their interest in becoming a DA customer but are not yet able to enroll in service because of DA cap limitations.

DAC - Disadvantaged Community
DASR - Direct Access Service Request - Request submitted by C&I to become direct access eligible.

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Demand - The rate at which electric energy is delivered to or by a system or part of a system, generally expressed in kilowatts {kW), megawatts {MW), or gigawatts {GW), at a given instant or averaged over any designated interval of time. Demand should not be confused with Load or Energy.

DER - Distributed Energy Resource -A small-scale physical or virtual asset {e.g., EV charger, smart thermostat, behind-the-meter solar/storage, energy efficiency) that operates locally and is connected to a larger power grid at the distribution level.

Distribution - The delivery of electricity to the retail customer's home or business through low voltage distribution lines.

DLAP- Default Load Aggregation Point- In the CAISO's electricity optimization model, DLAP is the node at which all bids for demand should be submitted and settled. Pioneer settles its CAISO load at the PG&E DLAP as Pioneer is in the PG&E transmission access charge area.

DR - Demand Response - An opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.

DWR - Department of Water Resources - DWR manages California's water resources, systems, and infrastructure in a responsible, sustainable way.

ELCC- Effective Load Carrying Capacity -The additional load met by an incremental generator while maintaining the same level of system reliability. For solar and wind resources the ELCC is the amount of capacity which can be counted for Resource Adequacy purposes.

EPIC - Electric Program Investment Charge -The EPIC program was created by the CPUC to support investments in clean energy technologies that provide benefits to the electricity ratepayers of PG&E, San Diego Gas & Electric Company {SDG&E), and Southern California Edison Company {SCE) ERRA - Energy Resource Recovery Account - ERRA proceedings are used to determine fuel and purchased power costs which can be recovered in rates. The utilities do not earn a rate of return on these costs, and only recover actual costs. The costs are forecast for the year ahead. If the actual costs are lower than forecast, then the utility gives money back, and vice versa.

ESP- Energy Service Provider - An energy entity that provides service to a retail or end-use customer.

EV - Electric Vehicle
GHG - Greenhouse gas - water vapor, carbon dioxide, tropospheric ozone, nitrous oxide, methane, and chlorofluorocarbons (CFCs). A gas that causes the atmosphere to trap heat radiating from the earth. The most common GHG is Carbon Dioxide, though Methane and others have this effect as well.

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GRC- General Rate Case - Proceedings used to address the costs of operating and maintaining the utility system and the allocation of those costs among customer classes. For California's three large IOUs, the GRCs are parsed into two phases. Phase I of a GRC determines the total amount the utility is authorized to collect, while Phase II determines the share of the cost each customer class is responsible and the rate schedules for each class. Each large electric utility files a GRC application every three years for review by the Public Advocates Office and interested parties and approval by the CPUC.

GWh - Gigawatt-hour - The unit of energy equal to that expended in one hour at a rate of one billion watts. One GWh equals 1,000 megawatt-hours.

IEP - Independent Energy Producers - California's oldest and leading nonprofit trade association, representing the interest of developers and operators of independent energy facilities and independent power marketers.

IOU - Investor Owned Utility- A private electricity and natural gas provider.

IRP- Integrated Resource Plan -A plan which outlines an electric utility's resource needs in order to meet expected electricity demand long-term.
kW - Kilowatt - Measure of power where power (watts)= voltage (volts) x amperage (amps) and 1 kW= 1000 watts
kWh - Kilowatt-hour - This is a measure of consumption. It is the amount of electricity that is used over some period of time, typically a one-month period for billing purposes. Customers are charged a rate per kWh of electricity used.

LCFS- Low Carbon Fuel Standard -A CARB program designed to encourage the use of cleaner low-carbon fuels in California, encourage the production of those fuels, and therefore, reduce greenhouse gas emissions.

LCR - Local (RA) Capacity Requirements -The amount of Resource Adequacy capacity required to be demonstrated in a specific location or zone.

LMP - Locational Marginal Price - Each generator unit and load pocket is assigned a node in the CAISO optimization model. The model will assign a LMP to the node in both the day- ahead and real time market as it balances the system using the least cost. The LMP is comprised of three components: the marginal cost of energy, congestion, and losses. The LMP is used to financially settle transactions in the CAISO.

Load - An end use device or customer that receives power from an energy delivery system. Load should not be confused with Demand, which is the measure of power that a load receives or requires.

See Demand.

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SE - Load-serving Entity- Entities that have been granted authority by state, local law, or regulation to serve their own load directly through wholesale energy purchases and have chosen to exercise that authority.

NEM - Net Energy Metering -A program in which solar customers receive credit for excess electricity generated by solar panels.

NRDC- Natural Resources Defense Council
OIR - Order Instituting Rulemaking - A procedural document that is issued by the CPUC to start a formal proceeding. A draft OIR is issued for comment by interested parties and made final by vote of the five Commissioners of the CPUC.

MW - Megawatt - measure of power. A megawatt equals 1,000 kilowatts or 1 million watts.

MWH - Megawatt-hour- measure of energy
NP-15 - North Path 15 - NP-15 is a CAISO pricing zone usually used to approximate wholesale electricity prices in northern California in PG&E's service territory.

PCCl - RPS Portfolio Content Category 1- Bundled renewables where the energy and REC are dynamically scheduled into a California Balancing Authority (CBA) such as the CAISO. Also known as "in-state" renewables.

PCC2 - RPS Portfolio Content Category 2 - Bundled renewables where the energy and REC are from out-of-state and not dynamically scheduled to a CBA.

PCC3 - RPS Portfolio Content Category 3 - Unbundled REC PCIA or "exit fee" - Power Charge Indifference Adjustment (PCIA) is an "exit fee" based on stranded costs of utility generation set by the California Public Utilities Commission. It is calculated annually and assessed to customers of CCAs and paid to the IOU that lost those customers as a result of the formation of a CCA.

PCL - Power Content Label - A user-friendly way of displaying information to California consumers about the energy resources used to generate the electricity they sell, as required by AB 162 (Statue of 2009) and Senate Bill 1305 (Statutes of 1997).

PD- Proposed Decision -A procedural document in a CPUC Rulemaking process that is formally commented on by Parties to the proceeding. A PD is a precursor to a final Decision voted on by the five Commissioners of the CPUC.

Pnode - Pricing Node - In the CAISO optimization model, it is a point where a physical injection or withdrawal of energy is modeled and for which a LMP is calculated.

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PPA- Power Purchase Agreement -A contract used to purchase the energy, capacity, and attributes from a renewable resource project.

RA - Resource Adequacy - Under its Resource Adequacy (RA) program, the California Public Utilities Commission (CPUC) requires load-serving entities-both independently owned utilities and electric service providers-to demonstrate in both monthly and annual filings that they have purchased capacity commitments of no less than 115% of their peak loads.

RE - Renewable Energy - Energy from a source that is not depleted when used, such as wind or solar power.

REC - Renewable Energy Certificate - A REC is the property right to the environmental benefits associated with generating renewable electricity. For instance, homeowners who generate solar electricity are credited with 1 solar REC for every MWh of electricity they produce. Utilities obligated to fulfill an RPS requirement can purchase these RECs on the open market.

RPS - Renewable Portfolio Standard - Law that requires CA utilities and other load serving entities (including CCAs) to provide an escalating percentage of CA qualified renewable power (culminating at 33% by 2020) in their annual energy portfolio.

SCE - Southern California Edison
SDG&E - San Diego Gas & Electric
SGIP - Self-Generation Incentive Program - A program which provides incentives to support existing, new, and emerging distributed energy resources (storage, wind turbines, waste heat to power technologies, etc.)
TCR EPS Protocol - The Climate Registry Electric Power Sector Protocol - Online tools and resources provided by The Climate Registry to assist organizations to measure, report, and reduce carbon emissions.

Time-of-Use (TOU) Rates - The pricing of delivered electricity based on the estimated cost of electricity during a particular time-block. Time-of-use rates are usually divided into three or four time-blocks per 24-hour period (on-peak, mid-peak, off-peak and sometimes super off­ peak) and by seasons of the year (summer and winter). Real time pricing differs from TOU rates in that it is based on actual (as opposed to forecasted) prices that may fluctuate many times a day and are weather sensitive, rather than varying with a fixed schedule.

TURN - The Utility Reform Network - A ratepayer advocacy group charged with ensuring that California IOUs implement just and reasonable rates.

Unbundled RECs - Renewable energy certificates that verify a purchase of a MWH unit of renewable power where the actual power and the certificate are "unbundled" and sold to different buyers.

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VPP - Virtual Power Plant - A cloud-based network that leverages an aggregation of distributed energy resources (DERs) to shift energy demand or provide services to the grid. For example, thousands of EV chargers could charge at a slower speed and hundreds of home batteries could discharge to the grid during a demand peak to significantly reduce the procurement of traditional supply resources.