PIG~NEER
COMMUNITY ENERGY
Board of Directors
Chair: Alice Dowdin Calvillo
Vice Chair: Tom Ivy
City of Auburn
Alice Dowdin Calvillo
Sandra Amara, 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
Dan Karleskint
Holly Andreatta, Alternate
Town of Loomis
David Ring
Danny Cartwright, Alternate
Nevada City
Gary Petersen
Lou Ceci, 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
March 21, 2024
3:00 PM REGULAR SESSION
Pioneer Community Energy Board Room
2510 Warren Drive, Suite B, Rocklin, CA 95677
This regular meeting will convene in person at the address printed above, be accessible on the Zoom platform at the following link:
https://us06web.zoom.us/j/89020017279; 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:
https: //us06web.zoom.us/j/89020017279.
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-Raisinq-vour-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.
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 revised minutes of the November 16, 2023, and January 18. 2024, regular meetings; and the minutes of the February 15, 2024, regular meeting. (ECKERT) b) FINANCE & ADMINISTRATION
Receive Fiscal Year 2023-24 Draft Financial Reports through January 2024. (KOEHN) c) ADMINISTRATION
Adopt Resolution approving Amendment No. 3 to the Employment Agreement for Executive Director between Pioneer Community Energy and Mr. Don Eckert. (ECKERT) d) FINANCE & ADMINISTRATION
Adopt Resolution approving the job description and salary range for the Communications Coordinator position. (KOEHN)
III. REGULAR AGENDA
2) ADMINISTRATION
Kick-Off of Fiscal Year 2024-2027 Strategic Planning Process (DISCUSSION-ECKERT) RECOMMENDATION: Receive report to kick-off the Fiscal Year 2024-2027 strategic planning process. 3) PROCUREMENT
Adopt a Resolution Approving Pioneer Community Energy's Load Management Standards Compliance Plan (ACTION- KANG)
RECOMMENDATION: Adopt Resolution approving Pioneer Community Energy's Load Management Standards (LMS) Compliance Plan and authorizing the Plan to be delivered to California Energy Commission. 4) PROGRAMS
Approval Authorizing the Executive Director to Launch a Heating Ventilation Air-Conditioning Tune-Up Program (ACTION- STASSI-VANACORE)
RECOMMENDATION: Approve to authorize the Executive Director to launch a Heating Ventilation Air-Conditioning ("HVAC") Tune-Up Program that enables Pioneer Community Energy to offer rebates to res1dential customers who receive a HVAC tune-up.
5) PROGRAMS
Programs Progress Report (DISCUSSION- STASSJ-VANACORE)
RECOMMENDATION: Receive a progress report on Board-approved programs and other related activity. 6) ADMINISTRATION
State of the Utility (DISCUSSION-E:CKERT)
RECOMMENDATION: Receive a report on the State of Pioneer Community Energy.
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:
April 25, 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 for persons with disabilities. All requests must be in writing and must be received by the Clerk five business days prior to the scheduled meeting for which you are requesting accommodation. Requests received after such time will be accommodated only if time permits.
Affidavit of Posting
I, Teresa Willock, Board Secretary, declare under penalty of perjury that the foregoing agenda for the March 21, 2024 regular meeting of the Pioneer Community Energy Governing Board was posted and available for public review on March 15, 2024 at the offices of Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, CA 95677; was accessible for viewer participation on the Zoom platform at the following link:
https://us06web.zoom.us/j/89020017279; and, was live streamed for viewing on the Pioneer website at, https://pioneercommunityenerqy.org/about-us/meetinqs-and-aqendas/.
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://pioneercommunityenerqy.orq/about-us/rneetlngs-and-aqendas/. Any document provided at the meeting by staff or by the public will be provided by the Board Clerk upon request by phone at (916) 758-8946, or by email at: [email protected],
PIONEER COMMUNITY ENERGY
GOVERNING BOARD
REGULAR MEETING MINUTES
November 16, 2023
REVISED – Red-lined version
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 20November 16, 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.
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 for biomass and small hydroelectric 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.
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 rate increases for 2024 with an average residential monthly billing 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.
Entry No. 1
PIONEER COMMUNITY ENERGY
GOVERNING BOARD
REGULAR MEETING MINUTES
January 18, 2024
REVISED - Red-lined version
Heard General Administration Functions, Part I.
Call to Order
Pioneer Community Energy Governing Board met in open session at 3: 00 PM on January 18, 2024. 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/i/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 (Ge-Fter Ring ), Nevada City (Petersen), County of Placer (Holmes), County of Placer (Jones), City of Placerville (Yarbrough), and City of Rocklin (Janda).
Absent: None.
Director Yarbrough arrived at 3:03 PM.
Director Holmes arrived at 3:08 PM.
Chair Dowd in Calvillo presided over the meeting.
Entry No. 2
Selection of Chair and Vice Chair of the Pioneer Governing Board for 2024 Elected Director Dowd in Calvillo to serve as Chair of the Pioneer Community Energy Governing Board for 2024, effective immediately.
MOTION: Hidahl. SECOND: Petersen. Vote: 10:0:1.
ROLL CALL: Andreatta, Dowdin Calvillo, Hidahl, Ivy, Janda, Jones, Lomen, Petersen, Ring, Yarbrough.
No/ Abstain: None.
Absent: Holmes.
Elected Director Ivy to serve as Vice Chair of the Pioneer Community Energy Governing Board for 2024, effective immediately.
MOTION: Dowd in Calvillo. SECOND: Hidahl. Vote: 10: 0: 1.
ROLL CALL: Andreatta, Dowdin Calvillo, Hidahl, Ivy, Janda, Jones, Lomen, Petersen, Ring, Yarbrough.
No/ Abstain: None.
Absent: Holmes.
Agenda Review
Reviewed and made no revision to the meeting agenda for January 18, 2024.
Public Comment
There were no comments from members of the public on items not listed on this agenda.
January 18, 2024 - page 2
Entry No. 3
Acted on the Consent Agenda as follows:
Received Fiscal Year 2023-24 Draft Financial Reports through November 2023.
MOTION: Andreatta. SECOND: Jones. Vote: 10:0:1.
ROLL CALL: Andreatta, Dowdin Calvillo, Hidahl, Ivy, Janda, Jones, Lomen, Petersen, Ring, Yarbrough.
No/ Abstain: None.
Absent: Holmes.
Entry No. 4
Receive Financial Audit Report from Pisenti & Brinker, LLP Received the Year-End Financial Statements and the Independent Auditor's Report for Fiscal Year 2022-23.
MOTION: Holmes. SECOND: Jones. Vote: 11:0:0.
ROLL CALL: Andreatta, Dowdin Calvillo, Hidahl, Holmes, Ivy, Janda, Jones, Lomen, Petersen, Ring, Yarbrough.
No/ Abstain: None.
Absent: None.
Entry No. 5
Adopt Resolution Approving the Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy with Any Changes Requested by the Governing Board Adopted Resolution 2024-1 approving the Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy with any changes requested by the Governing Board.
MOTION: Hidahl. SECOND: Janda. Vote: 11:0:0.
ROLL CALL: Andreatta, Dowdin Calvillo, Hidahl, Holmes, Ivy, Janda, Jones, Lomen, Petersen, Ring, Yarbrough.
No/ Abstain: None.
Absent: None.
Entry No. 6
Receive Update on Upcoming Programs
Received update on upcoming programs.
Entry No. 7
Adopt Resolution Approving the 2024 Governing Board Meeting Schedule Adopted Resolution 2024-2 approving the 2024 Governing Board Meeting Schedule.
MOTION: Petersen. SECOND: Lomen. Vote: 11 :0:0.
ROLL CALL: Andreatta, Dowdin Calvillo, Hidahl, Holmes, Ivy, Janda, Jones, Lomen, Petersen, Ring, Yarbrough.
No/ Abstain: None.
Absent: None.
Entry No. 8
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 January 18, 2024 - page 3
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
Adopted Resolution 2024-3 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 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.
MOTION: Holmes. SECOND: Andreatta. Vote: 11:0:0.
ROLL CALL: Andreatta, Dowdin Calvillo, Hidahl, Holmes, Ivy, Janda, Jones, Lomen, Petersen, Ring, Yarbrough.
No/ Abstain: None.
Absent: None.
Entry No. 9
Heard General Administration Functions, Part II.
Board Member Communications
Board Chair Dowdin Calvillo commended staff for an exemplary job with messaging for Grass Valley and Nevada City customers coming online January 1, 2024; and commented that there is a need for extra messaging because everyone will see a higher bill due to PG&E rate increase and colder weather, and not from joining Pioneer. And, suggested that Pioneer may also want to consider a later start date for future expansion territory, moving from January to April.
Chair Dowdin Calvillo also recommended it would be beneficial for Director Ivy (Grass Valley) and Director Peterson (Nevada City) to address this at their Council meetings, so that their constituency and customers hear directly from them that they still have a twelve percent rate reduction with Pioneer and eventhough they see the rate increase, it is not because of Pioneer.
Executive Director Eckert informed the Board that the focus this week has been more on getting the website updated with the new rates, then we will not only speak about the discount but also that it is still better with Pioneer and why bills may look higher. Then, looking for staff to attend each agency's board or council meetings in the coming weeks to provide public comment on this. - Chair Dmvdin Calvillo also recommended it would be beneficial for Director Ivy (Grass Valley) and Director Peterson (Nevada City) to address this at their Council meetings, so that their constituency and customers hear directly from them that they still have a twelve percent rate reduction with Pioneer and eventhough they see the rate increase, it is not because of Pioneer.
Clarifications were requested regarding the 99% participation rate and if customers are automatically opted in and then must opt out to not be a Pioneer customer; and to confirm that information on 'How to Read Your Bill' has been provided to the new customers.
Director Andreatta expressed her appreciation to Executive Director Eckert and staff for their kindness and care this past month and throughout the year; and informed the Board and staff that Alternate Director Karleskint will be returning to the Board as the primary member next month.
Committee Chair Janda reported that The Audit & Finance Committee met on January 3, 2024, to consider the following items:
January 18, 2024 - page 4
Received an audit report from Pisenti & Brinker, Pioneer's independent auditors. The auditor reported that the audit for years ended June 30, 2023 and 2022 financial statements is complete and reported an unmodified or 'clean' opinion that the financial statement presents fairly, in all material respects, the financial position of Pioneer Community Energy as of June 30, 2023 and 2022.
The committee conducted their annual selection of officers and selected as Chair Greg Janda and as Vice Chair John Hidahl.
Executive Director Communications
Executive Director Eckert reported that new rates at a 10% discount for Placer County, a 12% discount for Grass Valley and Nevada City, and a 19% discount for El Dorado County and City of Placerville. As for expansion, most complaints are coming from residents that are disappointed to not be joining Pioneer due to being residents of unincorporated Nevada County.
Executive Director Eckert informed the Board that the California Independent System Operator (CAISO) tour has been scheduled for January 3pt with four Board Members confirmed; and requested for any other interested Members to contact staff.
Informational Items
Received the Glossary of Terms.
Adjournment
The meeting adjourned at 3:56 PM.
DRAFT
PIONEER COMMUNITY ENERGY
GOVERNING BOARD
REGULAR MEETING MINUTES
February 15, 2024
Entry No. 1
Heard General Administration Functions, Part I.
Call to Order
Pioneer Community Energy Governing Board met in open session at 3:00 PM on February 15, 2024. The Members convened in person and the meeting was accessible to the public at Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, California 95677; at remote location Nevada City-City Hall, Wetherall Conference Room, 317 Broad Street, Nevada City, California 95959; was accessible for viewer participation on the Zoom platform at the following link: https://us06web.zoom.us/i/89020017279; and, was live streamed for viewing on the Pioneer website at: https://pioneercommunityenerqy.orq/about-us/meetinqs-and-aqendas/.
Roll Call
Present: City of Auburn (Dowdin Calvillo), County of El Dorado (Parlin), City of Grass Valley (Ivy), City of Lincoln (Karleskint), Nevada City (Petersen), County of Placer (Holmes), City of Placerville (Yarbrough), and City of Rocklin (Janda).
Absent: City of Colfax (Lomen), Town of Loomis (Ring), County of Placer (Jones).
Director Karleskint arrived at 3:05 PM.
Director Petersen informed the Board of a scheduling conflict causing an early departure from this meeting.
Chair Dowdin Calvillo presided over the meeting.
Public Report of Closed Session
Chair Dowd in Calvillo reported that immediately prior to this meeting, the Board met in Closed Session.
In the matter of Government Code Section 54957, a Public Employee Performance Evaluation of the Executive Director was conducted; and in the matter of Government Code Section 54957 .6, a Conference with Labor Negotiators was convened regarding the Executive Director, as an unrepresented employee.
No action was taken.
Agenda Review
Reviewed and revised the meeting agenda for February 15, 2024 as follows:
Pulled Item 3, Adopt Resolutions Commending Director Andreatta and Director Cortez for their Dedicated Service to Pioneer Community Energy, from the agenda to a future date.
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:
Item la, Approval of the revised minutes of the November 16, 2023 regular meeting; and the minutes of the December 14, 2023 and January 18, 2024 regular meetings, was pulled for separate consideration.
DRAFT February 15, 2024 - page 2
b) Adopted Resolution 2024-4 approving the Mid-Year Operating Budget Adjustments. c) Adopted Resolution 2024-5 approving Employee Recruitment Incentive Program. d) Affirmed existing committee members to the Audit & Finance Committee, the Energy Procurement Review ad hoc Committee, and the Expansion ad hoc Committee through January 2025. e) Appointed Director Petersen to Pioneer Community Energy's (Pioneer) Energy Procurement Review Committee to fill the vacancy created with the departure of Director Cortez; and Director Ring to the Audit & Finance Committee to fill the vacancy created with the departure of Director Andreatta. f) Received update regarding the Conflict of Interest Code Amendment for Pioneer Community Energy as a Multi-County Agency; and, next steps for filing Form 700-Statements of Economic Interests with the Fair Political Practices Commission.
Approved the Consent Agenda less Item la, Approval of the revised minutes of the November 16, 2023 regular meeting; and the minutes of the December 14, 2023 and January 18, 2024 regular meetings, which was pulled for separate consideration.
MOTION: Holmes. SECOND: Janda. Vote: 7:0:4.
ROLL CALL: Dowdin Calvillo, Holmes, Ivy, Janda, Parlin, Petersen, Yarbrough.
No/ Abstain: None.
Absent: Jones, Karleskint, Lomen, Ring.
Entry No. 3
Consent Agenda Item la, was amended to approve the minutes of the December 14, 2023 regular meeting; and to pull the minutes of the November 16, 2023 and January 18, 2024 regular meetings for revision and consideration at the March 21, 2024 meeting.
MOTION: Holmes. SECOND: Petersen. Vote: 7:0:4.
ROLL CALL: Dowdin Calvillo, Holmes, Ivy, Janda, Parlin, Petersen, Yarbrough.
No/Abstain: None.
Absent: Jones, Karleskint, Lomen, Ring.
Entry No. 4
Received report of Pioneer Community Energy receiving an investment grade credit rating from Standard & Poor's Global Ratings ("S&P") of A- with a long-term outlook of stable.
Entry No. S
Adopt Resolution Approving and Authorizing the Executive Director to Execute Any and All Documents and Agreements with Participate.Energy LLC and Tesla for Program Services Adopted Resolution 2024-6 approving and authorizing the Executive Director to execute any and all documents and agreements with Participate.Energy LLC and Tesla for program services.
MOTION: Holmes. SECOND: Janda. Vote: 7:0:4.
ROLL CALL: Dowdin Calvillo, Holmes, Ivy, Janda, Karleskint, Parlin, Yarbrough.
No/Abstain: None.
Absent: Jones, Lomen, Petersen, Ring.
DRAFT - February 15, 2024 - page 3
Entry No. 6
Update on the Implementation of Bioenergy Market Adjusting Tariff (BioMAT} Received update on the implementation of BioMAT.
Entry No. 7
Second Amended and Restated Joint Powers Authority Update Discussed as a follow-up to the resolution that approved the Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy at the January 18, 2024, Governing Board Meeting.
General Counsel Khalsa provided clarification regarding Section 14, concluding that Member Agency withdrawal or termination would not be amendment; Section 19, Member Agency approval of the addition of new members; and Section 4, Basic Powers, would require a vote by the Board. All amendments would still require a 30-day Notification to each Member Agency.
There were no suggestions or further changes requested at this time.
Director Janda confirmed that he would speak to his Council's concerns; and put the item back on the City of Rocklin Council agenda.
Entry No. 8
Heard General Administration Functions, Part II.
Board Member Communications
Chair Dowdin Calvillo informed the Board that in the five-year history of Pioneer Community Energy, it has not been represented at Cap-to-Cap; and announced that she will be representing Pioneer Community Energy at Cap-to-Cap on the Wildfire Committee regarding Biomass.
Executive Director Communications
Executive Director Eckert informed the Board of the CalCCA Annual Conference which will be held April 16- 18 in San Jose; and extended an invitation for any members who may be interested in attending.
Executive Director Eckert also announced and congratulated City of Grass Valley for moving up to Greenl00; introduced Patrick Enright as Pioneer's General Counsel point person, in addition to General Counsel Khalsa; and announced the retirement of Alexia Retallack, Customer Care Manager, with an invitation to join her celebration on February 27.
Informational Items
Received the Glossary of Terms.
Adjournment
The meeting adjourned at 4:45 PM.
Plf)NEER
COMMUNITY ENERGY
Staff Report - Item lb
To: The Governing Board
From: Eric Acedo, Sr. Financial Analyst
Item lb: Receive Fiscal Year 2023-24 Draft Financial Reports Through January 2024 Date: 3/21/2024
RECOMMENDATION
Receive Fiscal Year 2023-24 Draft Financial Reports through January 2024.
BACKGROUND
The Year-To-Date (YTD) financial reports are produced by Maher Accountancy for Board member and management review. Although these reports are unaudited, they provide the most up-to-date financial data for Pioneer Community Energy. The mPOWER program accepted its last application August 2021 and mPOWER activity is now limited to the administering the outstanding mPOWER Bonds. Financials for the mPOWER program will be included in the audited year end reports. For January 2024, 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 seven months of the fiscal year is $34.4 million.
ATTACHMENTS
1. Financial Reports through January 31, 2024
MAHER
/\ ~ , 1 11 ~J r A r r ✓
ACCOUNTANTS' COMPILATION REPORT
Management
Pioneer Community Energy
Management is responsible for the accompanying financial statements of the CCA Program of Pioneer Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of January 31 , 2024, and the related statement of revenues, expenses, and changes in net position for the period then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICP A. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America in these interim financial statements. Pioneer Community Energy's annual audited financial statements include the note disclosures and statement of cash flows omitted from these interim statements. If the omitted disclosures and the statement of cash flows were included in these financial statements, they might influence the user's conclusions about Pioneer Community Energy's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Pioneer Community Energy because we performed certain accounting services that impaired our independence.
H~A~
San Rafael, CA
March 6, 2024
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 1 PIONEER COMMUNITY ENERGY
CCAFUND
STATEMENT OF NET POSITION
As of January 31, 2024
ASSETS
Current assets
Cash and cash equivalents
Investments
Accounts receivable, net of allowance
Accrued revenue
Other receivables
Interest receivable
Prepaid expenses
Deposits
Total current assets
Non current assets
Capital assets, net of depreciation
Lease asset, net of amortization
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities
Accrued cost of electricity
Accounts payable
Other accrued liabilities
Interest payable
Deposits
Note payable
Lease liability
Total current liabilities
Noncurrent liabilities
Note payable
Lease liability
Total noncurrent liabilities
Total liabilities
NET POSITION
Net investment ( deficit) in capital assets
Unrestricted net position
Total net position
See accountants' compilation report.
CCAFund
$ 23,610,576
72,310,004
21,910,570
10,361,887
1,132,731
175,000
93,201
1,817,350
131,411,319
187,928
1,382,566
1,570,494
132,981,813
17,800,669
987,989
693,957
18,103
693,756
752,312
79,757
21,026,543
4,028,971
1,518,419
5,547,390
26,573,933
(27,682)
106,435,562
$ 106,407,880
2 PIONEER COMMUNITY ENERGY
CCAFUND
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Seven Months Ended January 31, 2024
OPERATING REVENUES
Electricity sales, net
Other income
Total operating revenues
OPERATING EXPENSES
Cost of electricity
Contract services
Staff compensation
Other operating expenses
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Interest and investment returns
Interest and financing expense
Nonoperating revenues (expenses), net
CHANGE IN NET POSITION
Net position at beginning of period
Net position at end of period
See accountants' compilation report.
CCAFund
$ 129,293,655
15,000
129,308,655
89,527,219
4,155,355
2,060,726
533,242
96,276,542
33,032,113
1,948,485
(558,125)
1,390,360
34,422,473
71,985,407
$ 106,407,880
3 PIC~)NEER COMMUNITY ENERGY
Participation Rates - January 2024
AUBURN INC 85.66% 85.53% 85.56%
COLFAX INC 88.39% 88.17% 88.32%
LINCOLN INC 82.86% 82.87% 82.89%
LOOMIS INC 87.99% 88.08% 88.00%
PLACERVILLE INC 86.63% 86.51% 86.41%
ROCKLIN INC 90.86% 90.84% 90.81%
UNINC EL DORADO CO 80.70% 80.69% 80.62%
UNINC PLACER CO 85.02% 85.07% 85.06%
Grand Total 84.20% 84.20% 84.16%
* Participation rates for Grass Valley and Nevada City are currently being assessed will be included in future reports; NEM customer enrollments are continuing to be processed.
4 MAHER
A l l J ,\ t J 'y
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 January 31 , 2024, 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.
H~A~
San Rafael, CA
March 6, 2024
1101 Fifth Avenue , Suite 200 San Rafael , CA 94901 415 459 1249 mahercpa .com 5
PIONEER COMMUNITY ENERGY
CCAFUND
BUDGETARY COMPARISON SCHEDULE
Seven Months Ended January 31, 2024
2023/24 2023/24
2023/24 YTD 2023/24 YTD YTD 2023/24 Amended
Amended 2023/24 YTD Variance Actual/ Amended Budget
Budget Actual (Under) Over Budget% Budget Remaining
ENERGY REVENUES
Energy Sales $ 142,617,130 $ 131,044,638 $ (11,572,492) 92% $ 225,938,000 $ 94,893,362 Green 100 Sales 18,774 18,368 (406) 98% 30,000 11,632
Congestion Revenue Rights 3,129,013 7,063,061 3,934,048 226% 5,000,000 (2,063,061) Less Uncollectible Accounts (I, 925,585) (1,769,350) 156,235 92% (3,050,568) (1,281,218) Total Operating Revenues 143,839,333 136,356,718 (7,482,615) 227,917,432 91,560,714
ENERGY EXPENSES
Power Supply 111,629,000 96,590,280 (15,038,720) 87% 183,919,000 87,328,720 OPERA TING MARGIN 32,210,333 39,766,438 7,556,105 43,998,432 4,231,994
OPERA TING EXPENSES
Administration
Compensation 482,082 367,858 (114,224) 76% 780,507 412,649 Contract services 242,856 44,042 (198,814) 18% 341,325 297,283 Operating expenses 540,189 375,983 (164,205) 70% 781,126 405,143 Total Administration expenses 1,265,126 787,883 (477,243) 62% 1,902,958 1,115,075 Finance
Compensation 484,089 485,783 1,695 100% 829,866 344,083 Contract services 393,444 192,925 (200,519) 49% 571,618 378,693 Operating expenses 182,310 136,845 (45,465) 75% 256,103 119,258 Total Finance expenses 1,059,842 815,553 (244,290) 77% 1,657,587 842,034 Power Procurement
Compensation 512,888 349,748 (163,140) 68% 829,237 479,489 Contract services 1,358,343 1,356,091 (2,253) 100% 2,120,341 764,250 Operating expenses 25,083 4,316 (20,767) 17% 43,000 38,684 Total Power Procurement expenses 1,896,315 1,710,155 (186,160) 90% 2,992,578 1,282,423 Customer Care
Compensation 423,253 322,839 (100,414) 76% 725,576 402,737 Contract services 1,704,133 1,547,366 (156,766) 91% 2,921,370 1,374,004 Operating expenses 10,646 379 (I 0,267) 4% 18,250 17,871 Total Customer Care expenses 2,138,031 1,870,584 (267,447) 87% 3,665,196 1,794,612 Marketing & Communications
Compensation 138,835 116,631 (22,204) 84% 283,922 167,291 Contract services 645,377 676,529 31,152 105% 1,106,360 429,831 Operating expenses 298,088 246,679 (51,409) 83% 361,600 114,921 Total Marketing expenses 1,082,300 1,039,839 (42,461) 96% 1,751,882 712,043 Legislative & Regulatory
Compensation 337,010 306,755 (30,255) 91% 577,732 270,977 Contract services 173,440 79,721 (93,719) 46% 217,275 137,554 Operating expenses 3,675 6,145 2,470 167% 6,300 155
Total Legislative expenses 514,125 392,620 (121,505) 76% 801,307 408,687 Programs
Compensation 122,665 103,305 (19,360) 84% 210,283 106,978 Contract services 36,167 41,520 5,353 115% 62,000 20,480 Operating expenses 1,007,835 124 (1,007,711) 0% 1,727,717 1,727,593 Total Programs expenses 1,166,667 144,949 (1,021,717) 12% 2,000,000 1,855,051 Total Operating Expenses 9,122,406 6,761,583 (2,360,823) 74% 14,771,508 8,009,925
NON-OPERA TING REVENUES (EXPENSES)
Investment gains (losses) 666,667 1,948,485 1,281,818 2,500,000 551,515 Term Loan Debt Service (554,167) (532,983) 21,184 96% (950,000) (417,017) Additional Term Loan Principal (2,100,000) (2,100,000) (2,100,000) Line/Letter of Credit Fees (312,500) (364,422) (51,922) 117% (650,000) (285,578) Financial Security Requirement (360,000) 360,000 0% (360,000) (360,000) N onoperating revenues (expenses), net (2,660,000) (1,033,920) 1,626,080 (1,560,000) (526,080) Total Expenses (Energy, Operating, Non-Operating) 123,411,406 104,385,783 (19,025,623) 200,250,508 95,864,725 Contribution to/(from) Reserves $ 20,427,927 $ 31,970,935 $ 11,543,008 $ 27,666,924 $ (4,304,011)
PIONEER COMMUNITY ENERGY
CCAFUND
BUDGETARY COMPARISON SCHEDULE
Seven Months Ended January 31, 2024
2023/24 2023/24
2023/24 YTD 2023/24 YTD YTD 2023/24 Amended
Amended 2023/24 YTD Variance Actual/ Amended Budget
Budget Actual (Under) Over Budget% Budget Remaining
ENERGY REVENUES
Energy Sales $ 142,617,130 $ 131,044,638 $ (11,572,492) 92% $ 225,938,000 $ 94,893,362 Greenl00 Sales 18,774 18,368 (406) 98% 30,000 11,632
Congestion Revenue Rights 3,129,013 7,063,061 3,934,048 226% 5,000,000 (2,063,061) Less Uncollectible Accounts (1,925,585) (1,769,350) 156,235 92% (3,050,568) (1,281,218) Total Operating Revenues 143,839,333 136,356,718 (7,482,615) 227,917,432 91,560,714
ENERGY EXPENSES
Power Supply 111,629,000 96,590,280 (15,038,720) 87% 183,919,000 87,328,720 OPERA TING MARGIN 32,210,333 39,766,438 7,556,105 43,998,432 4,231,994
OPERA TING EXPENSES
Administration
Compensation 482,082 367,858 (114,224) 76% 780,507 412,649 Contract services 242,856 44,042 (198,814) 18% 341,325 297,283 Operating expenses 540,189 375,983 (164,205) 70% 781,126 405,143 Total Administration expenses 1,265,126 787,883 (477,243) 62% 1,902,958 1,115,075 Finance
Compensation 484,089 485,783 1,695 100% 829,866 344,083 Contract services 393,444 192,925 (200,519) 49% 571,618 378,693 Operating expenses 182,310 136,845 (45,465) 75% 256,103 119,258 Total Finance expenses 1,059,842 815,553 (244,290) 77% 1,657,587 842,034 Power Procurement
Compensation 512,888 349,748 (163,140) 68% 829,237 479,489 Contract services 1,358,343 1,356,091 (2,253) 100% 2,120,341 764,250 Operating expenses 25,083 4,316 (20,767) 17% 43,000 38,684 Total Power Procurement expenses 1,896,315 1,710,155 (186,160) 90% 2,992,578 1,282,423 Customer Care
Compensation 423,253 322,839 (100,414) 76% 725,576 402,737 Contract services 1,704,133 1,547,366 (156,766) 91% 2,921,370 1,374,004 Operating expenses 10,646 379 (10,267) 4% 18,250 17,871 Total Customer Care expenses 2,138,031 1,870,584 (267,447) 87% 3,665,196 1,794,612 Marketing & Communications
Compensation 138,835 116,631 (22,204) 84% 283,922 167,291 Contract services 645,377 676,529 31,152 105% 1,106,360 429,831 Operating expenses 298,088 246,679 (51,409) 83% 361,600 114,921 Total Marketing expenses 1,082,300 1,039,839 (42,461) 96% 1,751,882 712,043 Legislative & Regulatory
Compensation 337,010 306,755 (30,255) 91% 577,732 270,977 Contract services 173,440 79,721 (93,719) 46% 217,275 137,554 Operating expenses 3,675 6,145 2,470 167% 6,300 155
Total Legislative expenses 514,125 392,620 (121,505) 76% 801,307 408,687 Programs
Compensation 122,665 103,305 (19,360) 84% 210,283 106,978 Contract services 36,167 41,520 5,353 115% 62,000 20,480 Operating expenses 1,007,835 124 (1,007,711) 0% 1,727,717 1,727,593 Total Programs expenses 1,166,667 144,949 (1,021,717) 12% 2,000,000 1,855,051 Total Operating Expenses 9,122,406 6,761,583 (2,360,823) 74% 14,771,508 8,009,925
NON-OPERA TING REVENUES (EXPENSES)
Investment gains (losses) 666,667 1,948,485 1,281,818 2,500,000 551,515 Term Loan Debt Service (554,167) (532,983) 21,184 96% (950,000) (417,017) Additional Term Loan Principal (2,100,000) (2,100,000) (2,100,000) Line/Letter of Credit Fees (312,500) (364,422) (51,922) 117% (650,000) (285,578) Financial Security Requirement (360,000) 360,000 0% (360,000) (360,000) Nonoperating revenues (expenses), net (2,660,000) (1,033,920) 1,626,080 (1,560,000) (526,080) Total Expenses (Energy, Operating, Non-Operating) 123,411,406 104,385,783 (19,025,623) 200,250,508 95,864,725 Contribution to/(from) Reserves $ 20,427,927 $ 31,970,935 $ 11,543,008 $ 27,666,924 $ (4,304,011) Plf)NEER
COMMUNITY ENERGY
To:
From:
Item le:
Date:
Staff Report - Item le
The Governing Board
Patrick Enright, General Counsel
Amendment No. 3 to the Employment Agreement for Executive Director/Chief Executive Officer
3/21/2024
RECOMMENDATION
Adopt Resolution Approving Amendment No. 3 to the Employment Agreement for Executive Director between Pioneer Community Energy ("Pioneer") and Mr. Don Eckert.
BACKGROUND
Pioneer executed an Employment Agreement with Mr. Eckert on July 13, 2020. The Agreement was amended by Amendment No. 1 on November 18, 2021, and by Amendment No. 2 on January 19, 2023.
After conducting Mr. Eckert's 2023 performance review, the Board found that Pioneer has made valuable advances in 2023 as Mr. Eckert has successfully navigated Pioneer to a value-driven organization that provides savings and excellent service to Pioneer's customers while expanding in deliverables that enhance brand image and strengthen Pioneer's commitment to the community, including but not limited to:
• Recommended rate options for 2023 resulting in ratepayer savings of $46 million compared to Pacific Gas & Electric's ("PG&E") generation rate.
• Shepherded Pioneer to receive an A- credit rating from Standard & Poor's with a stable long-term outlook. The operating budget supports significant ratepayer savings, $2 million for program development, and continued build-up of reserves towards Pioneer's policy target. • Secured procurement of powers supply and resource adequacy in a volatile market for the expansion into the City of Grass Valley and Nevada City. The result of the urgent procurement of powers supply allowed the new territory to receive the same generation rate as the current customers and, subsequently, a discount from PG&E. Public outreach and education over nine months resulted in an initial 99 percent participation rate. • Achieved 100 percent compliance with Resource Adequacy (capacity) procurement during a challenging market while many other Community Choice Aggregators fell short of their obligations.
• Negotiated contract for asset optimization for solar+ storage power purchase agreements that could result in several million dollars in revenue by timing energy storage with market signals. • Introduced a Feed-In Tariff to incentivize local biomass and small-hydro projects while continuing to push AB 843 through the California Public Utility Commission ("CPUC"), which supports local biomass projects by granting Pioneer access to Public Purpose Funding. • Collaborated with Member Agencies in the development and launch of a new program to promote their compliance with SB 1383 through the negotiated purchase of attributes. • Diversified the Pioneer workforce while retaining valuable employees.
Pursuant to Section 5 and Section 7 of the Employment Agreement, a performance evaluation and compensation review is to be conducted on at least an annual basis, prior to the employment anniversary date. The Board of
Agenda Item: le Agenda Date: 3/21/2024
Directors met with the designated negotiator, Board Chair Dowdin Calvillo, following the performance evaluation to provide direction on a compensation increase.
ANALYSIS & DISCUSSION
Amendment No. 3 to the Employment Agreement for Executive Director/Chief Executive Officer proposes the following changes:
1. Increases the Executive Director salary from $316,000 to $319,160 per year, retroactive to July 1, 2023 to reflect a one percent C:OI A inr.rerise rinci $1.1S, 118, effor.tive lc=inuc=iry 1, ?0?4 to n=-flPct n fivP rPrcPnt merit increase as a result of the Executive Director's 2023 performance review.
2. Changes Mr. Eckert's working title from Executive Director to Chief Executive Officer.
STRATEGIC PLAN
Strategic Priority 3: Employer of Choice
FISCAL IMPACT
Adequate appropriations exist in the current budget to fund the $18,118 increase in annual salary.
ATTACHMENTS
1. Resolution Approving Amendment No. 3 to the Employment Agreement for Executive Director/Chief Executive Officer
2. Redline Version of Employment Agreement and Amendments No. 1 and 2 showing changes for Amendment No. 3 to the Employment Agreement
Before the Governing Board of
Pioneer Community Energy
In the matter of: A Resolution Approving
Amendment No. 3 to the Employment
Agreement for Executive Director
Resolution No.: -----
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held March 21, 2024, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
Chair of the Governing Board
Attest:
Secretary
WHEREAS, on July 13, 2020, Pioneer Community Energy and Donald Eckert entered into an Employment Agreement for Executive Director; and
WHEREAS, the Agreement was amended by Amendment No. 1 on November 18, 2021, and Amendment No. 2 on January 19, 2023; and
WHEREAS, the pa1iies desire to amend the Employment Agreement to provide for an increase in the Executive Director salary effective on February 15, 2024, and to change the working title of Mr. Eckert's position of Chief Executive Officer.
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 Amendment No. 3 to the Employment Agreement for the Executive Director, as attached to this Resolution as Exhibit A
3. This Resolution shall take effect immediately upon its adoption.
Exhibit A
Amendment No. 3 to Employment Agreement for Executive Director 2 AMENDMENT NO. 3 TO EMPLOYMENT AGREEMENT FOR
EXECUTIVE DIRECTOR COMMONLY REFERRED TO AS CHIEF EXECUTIVE
OFFICER
The Employment Agreement, dated May 28, 2020, between Pioneer Community Energy (Pioneer) and Donald Eckert, an individual (Employee), is amended by this Amendment 3, dated March 21, 2024.
A. Whereas, Pioneer and Employee entered into an Employment Agreement (Agreement), as identified above, providing for the employment of Employee as Executive Director of Pioneer, commencing on July 13, 2020. The Agreement was amended by Amendment No. 1 on November 18, 2021, and Amendment No. 2 on January 19, 2023.
B. Whereas Employee has made valuable advances in 2023 as he successfully navigated Pioneer to a value-driven organization that provides savings and excellent service to Pioneer's customers while expanding in deliverables that enhance brand image and strengthen Pioneer's commitment to the community, including but not limited to:
• Recommended rate options for 2023 resulting in ratepayer savings of $46 million compared to Pacific Gas & Electric' s ("PG&E") generation rate. • Shepherded Pioneer to receive an A- credit rating from Standard & Poor's with a stable long-term outlook. The operating budget supports significant ratepayer savings, $2 million for program development, and continued build-up of reserves towards Pioneer's policy target.
• Secured procurement of powers supply and resource adequacy in a volatile market for the expansion into the City of Grass Valley and Nevada City. The result of the urgent procurement of powers supply allowed the new territory to receive the same generation rate as the current customers and, subsequently, a discount from PG&E. Public outreach and education over nine months resulted in an initial 99 percent participation rate.
• Achieved 100 percent compliance with Resource Adequacy ( capacity) procurement during a challenging market while many other Community Choice Aggregators fell short of their obligations.
• Negotiated contract for asset optimization for solar+ storage power purchase agreements that could result in several million dollars in revenue by timing energy storage with market signals.
• Introduced a Feed-In Tariff to incentivize local biomass and small-hydro projects while continuing to push AB 843 through the California Public Utility Commission ("CPUC"), which supports local biomass projects by granting Pioneer access to Public Purpose Funding.
• Collaborated with Member Agencies in the development and launch of a new program to promote their compliance with SB 1383 through the negotiated purchase of attributes.
• Diversified the Pioneer workforce while retaining valuable employees.
C. Whereas, the parties desire to amend the Agreement with this Amendment No. 3 to provide for a one percent cost of living adjustment ("COLA") retroactive to July 1, 2023, and a five percent merit increase effective January 1, 2024. This Amendment will also change the working title of Employee from Executive Director to Chief Executive Officer.
THEREFORE, the parties desire to amend the Agreement as follows:
1. Section 1, titled "DUTIES," is amended to read as follows:
"DUTIES
(a) Pioneer hereby agrees to employ Employee as Chief Executive Officer ("CEO") of Pioneer to perform the functions and duties as specified in the attached Executive Director Job Description (Attachment A), Pioneer policies, ordinances, and resolution to perform other legally permissible and proper duties and functions as the Board may from time to time assign. The change in title to CEO is consistent with the title of Chief Executive Officer of other Community Choice Aggregators. (b) Employee shall perform Employee's duties to the best of Employee's ability in accordance with the highest professional and ethical standards of the profession and shall comply with all general rules and regulations established by Pioneer.
2. Section 5, titled "SALARY," is amended to read as follows:
"SALARY.
Pioneer agrees to pay Employee a salary of $335,118 annually. This amount includes a one percent COLA increase as approved for all employees effective July 1, 2023, and a five percent merit increase effective January 1, 2024.
Annual salary adjustments will be based on Employee's performance evaluations and achievement of goals and objectives agreed upon with the Pioneer Board as described below. Salary is payable in accordance with Pioneer's standard payroll schedule (biweekly).
The applicable law and Pioneer policies, ordinances and resolutions relevant to managers and division directors, will control on all elements of payment and accrual of compensation, and as they may be amended from time to time." Except as expressly amended by this Amendment, all other provisions of the Agreement shall remain in full force and effect.
-2-
IN WITNESS WHEREOF, the parties have executed this Amendment No. 3.
Pioneer Community Energy
Chair, Board of Directors
DATE: -----------
ATTEST:
Board Clerk
Employee
Don Eckert
DATE: ---------
APPROVED AS TO FORM:
Patrick Enright
General Counsel
-3-
EMPLOYMENT AGREEMENT
THIS AGREEMENT is between Pioneer Community Energy ("Pioneer") and Donald Eckert ("Employee") and is dated this 28th day of May 2020.
A. Pioneer desires to employ Employee as its Executive Director.
B. Employee desires to serve as the Executive Director of Pioneer Community Ener~y be~inninQ July 13, 2020.
C. The Pioneer Community Energy Governing Board (hereinafter "Board") as appointing power, and Employee desire to agree in writing to the terms and conditions of Employee's employment as the Executive Director.
AGREEMENT
1. DUTIES.
(a) Pioneer hereby agrees to employ Employee as Chief Executive Officer ("CEO") Executive Director of Pioneer to perform the functions and duties as specified in the attached Executive Director Job Description (Attachment A}, Pioneer policies, ordinances and resolutions, and to perform other legally permissible and proper duties and functions as the Board may from time to time assign. The change in title to CEO is consistent with the title of Chief Executive Officer of other Community Choice Aggregators. (b) Employee shall perform Employee's duties to the best of Employee's ability in accordance with the highest professional and ethical standards of the profession and shall comply with all general rules and regulations established by Pioneer. (c) Employee shall not engage in any activity which is or may become a conflict of interest, prohibited contract, or which may create an incompatibility of office as defined under California law and agrees that Employee will not take any position, paid or otherwise, which may, in any degree conflict or appear to conflict with the duties inherent in the position of Pioneer Executive Director. Prior to performing any services under this Agreement and annually thereafter, the employee must complete disclosure forms required by law.
2. TERM.
(a) The term of this Agreement shall be four (4) years from July 13, 2020, to July 13, 2024 ("Term"}, unless terminated by either party in accordance with the provisions set forth in Paragraph 3, or unless terminated for cause, or in the event of death, or permanent disability of Employee.
(b) This Agreement may be renewed for additional terms of three (3) years per term upon written agreement of the parties. Negotiation of contract renewal is to commence 180 days prior to end of prior Term. Notice of non-renewal of this Agreement shall be provided to either party one hundred eighty (180) days prior to end of the Term. (c) Employee agrees to remain in the exclusive employ of Pioneer during the Term of this Agreement.
3. RESIGNATION AND TERMINATION.
(a) Employee may resign at any time and agrees to give Pioneer thirty (30) days advance written notice of the effective date of [mployee's resignation. (b) Pioneer may terminate Employee with or without cause upon thirty,(30) days written notice. If termination is without cause, paragraph 4 applies. (c) The parties recognize and affirm that: 1) Employee is an "at-will", exempt management employee whose employment may be terminated by Pioneer without cause; and 2) there is no express or implied promise made to Employee for any form of continued employment.
(d) At the discretion of the Board, the decision to terminate may be made in closed session in accordance with the Ralph M. Brown Act. (e) The Employee may choose to resign Employee's office instead of being terminated. In such an event, paragraph 4 remains applicable.
4. SEVERANCE PAY.
Except in the case of non-renewal of this Agreement, as described in 2.(b) or resignation as described in 3(a) above, if Employee is terminated by the Board without cause while still willing and able to perform the duties of Executive Director, Pioneer agrees to pay Employee a cash payment equal to six (6) months base salary (including any 30 day notice period provided) and no other cash compensation or benefits, defined as the Employees current salary.
Employee may at his election continue to receive benefits provided by Pioneer consistent with State or Federal law but the full costs of any such benefits shall be exclusively at the cost of the Employee. Pioneer will as required deduct appropriate employee costs for applicable Pioneer, State or Federal withholding for payroll taxes and other deductions and charges required by law.
Such payment will release Pioneer from any further obligations under this Agreement and any other provisions of law. Any unpaid, previously accrued leave, including but not limited to vacation, management leave, sick leave, floating holidays, or any other accruable leave that may in effect at the time of severance, will be dispersed in the same manner as then provided to management employees, and as they may be amended from time to time. This provision shall not apply to termination for cause.
In exchange for severance pay, Employee agrees that at the time of payment of the severance Employee will execute a release of all claims related to Employee's employment with Pioneer. If Employee is terminated for good cause consisting of acts of moral turpitude Pioneer, or if Employee is convicted of a crime involving abuse of office or position, as defined under Government Code Section 53243.4, Pioneer shall have no obligation to continue the employment of Employee or to pay the severance set forth in this paragraph.
5. SALARY.
Pioneer agrees to pay Employee a salary of $3345, 11815,562.50 annuallyoer year effective eR-J.Deeemeer ~ 6, 2022 u,e date the Beaf€1 oomme11oed the publio employee perrom1ance e11aluation.
This amount includes a one percent COLA increase as approved for all employees effective July 1, 2023, and a five percent merit increase effective January 1, 2024.
Annual salary adjustments will be based on Employee's performance evaluations and achievement of goals and objective agreed upon with the Pioneer Board. Salary is payable in accordance with Pioneer's standard payroll schedule (biweekly) The applicable law and Pioneer policies, ordinances and resolutions relevant to managers and division directors, will control on all elements of payment and accrual of compensation, and as they may be amended from time to time.
6. SUPPLEMENTAL BENEFITS.
Vacation. Employee will initially be eligible for 80 hours (two weeks) of paid vacation leave per year. The accrual of vacation will increase according to the schedule below. o 0-2 years = 1 0 days,
o 3-4 years = 12 days,
o 5-9 years = 15 days,
o 10-19 years = 20 days,
o 20 years or more = 25 days.
o Maximum accrual 480 hours
Accrued amounts of vacation time in excess of 480 will be cashed out at the end of each fiscal year.
Management Leave. Employee will receive 80 hours of management leave per year which shall be added to Employee's leave balances at the beginning of each fiscal year. Employee may take Management Leave as paid time-off, or Employee may cash-out any unused balances of management leave at any time during the year in lieu of taking management leave time off.
Cash-out amount shall be the number of hours requested to be cashed-out multiplied by the hourly rate at the time of the cash-out request. Employee shall make cash-out requests in writing and shall submit the request with payroll timekeeping. Any time which is cashed-out will not be available for time off. At the end of each fiscal year, any unused management leave will be cashed out.
If Employee terminates under any circumstance, Pioneer shall calculate the pro-rated amount earned by Employee as of the date of termination and Employee shall reimburse Pioneer for any unearned leave taken as time off or cashed out. The pro-rated amount shall be calculated by dividing the number of full-time hours elapsed to-date for the fiscal year, divided by 2080 multiplied by 80 hours. Any management hours used in excess of the pro-rated amount shall be then multiplied by the hourly rate at the time of termination to determine the amount Employee shall reimburse rionecr.
Sick Leave. Employee will accrue sick leave at the rate of per hour or 12 days per year.
Employee's unused sick balances leave will continue to accrue until Employee terminates employment with Pioneer. Unused balances at termination will be paid out based on the following formula.
((Sick Leave Balance Hours - 192 hours) * 0.5) * Hourly Rate= Pay Out Bereavement Leave. Three days of paid leave upon the death of an immediate family member.
Medical Insurance Plan. Employee will be required to participate in Pioneer's employee medical insurance program, unless Employee provides proof of coverage provided by a spouse or prior employment/service. Specific terms and conditions of medical coverage may change based upon insurance provider's determinations. Benefits offered, employer paid premiums and participation requirements are subject to change by determination of Pioneer's Governing Board.
Medical, dental and vision benefits are as follows:
o Medical coverage choice of Covered California Platinum, Gold or Silver coverage Pioneer pays a maximum of $1,755 for employee and dependent premiums o Pioneer provides employee and dependent dental coverage of $118 per month o Pioneer provides employee and one dependent vision coverage of $18 per month Retirement Plan. Pioneer provides a qualified 401 a deferred compensation plan and a 457b deferred compensation plan. In 2023, the annual contribution by Pioneer will be $22,500.
The annual contribution will escalate consistent with increases allowed by IRS Code.
Contributions shall be made on each pay-day. Employee may at his option election make contributions to a 457b plan up to the IRS limit. Employee's retirement benefit will be the maximum annual amount allowed by the IRS Code for a 457b plan (not including any catch-up provision amounts), contributed by Pioneer into a 401 a plan.
All actions taken by Pioneer relating to benefits for management employees in general shall be considered actions granting the same benefits to or imposing the same restrictions on Employee.
Automobile Allowance. Employee will be provided an annual automobile allowance of $6,600 per year. Automobile allowance will be payable as special pay on each biweekly pay in the amount of $253.85. Auto allowance is provided in lieu of mileage.
Tool and Training Employee shall be provided appropriate basic office tools, cell phone, computer, and travel and training costs, including membership in professional associations and attendance at industry conferences, consistent with the Pioneer's budget process.
Relocation Expense. Employee shall be provided up to $5,000.00 for reimbursement of relocation costs subject to verification of actual costs, including temporary housing for the period from July 13, 2020 to January 9, 2021 (100 day~).
7. PERFORMANCE EVALUATION.
The Board shall evaluate Employee's performance at least annually, and in any event thirty (30) to sixty (60) clays prior to employment anniversary date. Progress on the salary range set out in Paragraph 5 shall require action at a regular meeting and is expressly conditioned upon the Employee receiving a positive performance evaluation.
Employee may be eligible to be considered for a performance incentive each fiscal year. The performance incentive (if any) will be awarded based on objective or subjective criteria established by Pioneer's Governing Board. Employee's target performance incentive (if any) will be based on goals and objectives established during Employee's annual evaluation and the amount of performance incentive awarded will be determined annually at each subsequent annual evaluation. Any performance incentive for a fiscal year will be paid within six months after the close of that fiscal year, but only if Employee is still employed by Pioneer at the time of payment. The determinations of Pioneer's Governing Board with respect to Employee's performance incentive, if any, will be final and binding.
8. OTHER TERMS AND CONDITIONS OF EMPLOYMENT.
The Board, by resolution or ordinance, shall fix any other terms and conditions of employment as it may determine from time to time relating to the performance of Employee, provided that such terms and conditions are not inconsistent with provisions of this Agreement or other law.
Conditions precedent to employment are satisfactory completion of a background check, including credit check and health exam.
9. NOTICES.
Any notices required by this Agreement shall be in writing and either given in person or by First Class Mail with the postage prepaid and addressed as follows:
TO: Pioneer Community Energy Governing Board
c/o Chairperson
2510 Warren Drive, Suite B
Rocklin, CA 95677
TO EMPLOYEE:
10 ASSIGNMENT.
Donald Eckert
2510 Warren Drive, Suite B
Rocklin, CA 95677
This Agreement is not assignable by either Pioneer or Employee. Any assignment by either party shall be void.
11 COOPERATION.
Employee and Pioneer agree that at the time of severance they will cooperate fully in executing any and all further documents and taking any and all additional action necessary to carry out the intent of this Agreement.
12. SEVERABILITY.
In the event that any provision of this Agreement is finally held or determined to be Illegal or void by a court having jurisdiction over the parties, the remainder of the Agreement shall remain in full force and effect unless the parts found to be void are either wholly inseparable from or cause a failure of consideration regarding the remaining portion of the Agreement.
13. CONSULTATION WITH COUNSEL
Employee acknowledges he has had the opportunity to consult with his own legal counsel as to this Agreement prior_to execution thereof.
14. COUNTERPARTS.
This Agreement may be executed simultaneously in counterparts and each of which shall be deemed an original, but all of which together shall constitute one and the same Instrument.
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Staff Report - Item ld
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item ld: Adopt Resolution Approving the Job Description and Salary Range for the Communications Coordinator Position
Date: 3/21/2024
RECOMMENDATION
Adopt Resolution approving the job description and salary range for the Communications Coordinator position.
BACKGROUND
The Board has historically approved Pioneer job descriptions and has authorized the Executive Director to modify as needed over time. As a small organization that is growing and adjusting to best meet the service needs of Pioneer's customers, it is essential for Pioneer to respond with appropriate job descriptions that fulfill the service need.
ANALYSIS & DISCUSSION
Personnel
Fiscal Year 2023-24 authorized 18 full-time positions. Pioneer has recently experienced several vacancies that provide an opportunity to reevaluate and position the organization for the future, without increasing the number of full-time positions.
New Job Description
• Communications Coordinator - Position will work on a wide range of activities that support the ongoing development and execution of Pioneer's communications and outreach plan. The position will engage with a range of different contractors, consultants, and online service providers (e.g. website/graphics design, website development, online tools, social media platforms, and resource for customers and Pioneer's internal team).
FISCAL IMPACT
The approval of the job descriptions does not have a budgetary impact. The position's salary range of $71,000 - $117,000 is also less than the existing vacant position (Key Accounts Manager) it would replace. The annual savings are estimated to be $42,000.
ATTACHMENTS
1. Resolution Approving the Job Description and Salary Range for the Communications Coordinator.
Before the Governing Board of
Pioneer Community Energy
In the matter of: Approving the Job Description for
the Communications Coordinator and Salary Range Resolution No.: ____ _ The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held March 21, 2024, 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 Board has approved the Fiscal Year 2023-24 Budget; and WHEREAS, the 2021-2024 Strategic Plan informed the Budget development; and WHEREAS, the Budget programmed and funded 18 full-time positions staffing positions for Fiscal Year 2023-24; and
WHEREAS, recent vacancies provide an opportunity to reevaluate and position the organization for the future; and
WHEREAS, the approval of a new job description does not increase the approved number of positions;
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. Approve Job Description for Communications Coordinator and Salary Range; and authorize the Executive Director to modify as needed.
3. This Resolution shall take effect immediately upon its adoption.
Attachments:
A. Job Description for Communications Coordinator
B. Salary Matrix
Employee's Name:
Job Title:
Department:
Reports To:
FLSA Status:
Prepared By:
Prepared Date:
Pioneer Community Energy
Job Description
Communications Coordinator
Marketing
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Director of Public Affairs, Marketing and Programs
Non-exempt
3/05/2024
Summary: The Communications Coordinator works under the direction of the Director of Public Affairs, Marketing and Programs. This position works on a wide range of activities that support the ongoing development and execution of Pioneer's communications and outreach plan. This position will engage with a range of different contractors, consultants, and online service providers (e.g., website/graphics design, website development, online tools, social media platforms, and resources for customers and Pioneer's internal team).
Essential Duties and Responsibilities: include the following. Other duties may be assigned. • Assists in the planning and execution of Pioneer's communications and outreach plans to enhance Pioneer's mission and strategic goals.
• Supports Pioneer's leadership and staff in advancing programs through a variety of communications channels such as emailing, website management, social media monitoring and comment moderation and direct customer interaction, when needed. • Analyzes and tracks performance of communications campaigns. • Conducts quantitative research to identify and better understand specific audience segments.
• Supports Pioneer staff with partnerships with external parties to execute customer programs, including developing presentations for a variety of audiences including but not limited to community groups, trade associations, sponsored events, and local representatives.
• Participates in and helps organize events to distribute information about Pioneer and interact with members of the public.
• Assists with various communications efforts to support outreach such as collateral development, social media, video and event planning and management. • As assigned, assist with the implementation of Pioneer's Strategic Plan.
Supervisory Responsibilities: This job has no supervisory duties.
Measures of Performance: The Communications Coordinator shall be considered to be performing in an acceptable manner when the following have been accomplished:
1. Analytical Thinking - Synthesizes complex or diverse information; Collects and researches data; Uses intuition and experience to complement data; Makes a systematic comparison of two or more alternatives; Notices discrepancies and inconsistencies in available information; Approaches a complex task or problem by breaking it down into its PIG~NEER
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component parts and considering each part in detail; Weighs the cost, benefits, risks, and chances for success in making a decision; Designs work flows and procedures.
2. Problem Solving - Identifies and resolves problems in a timely manner; Gathers and analyzes information skillfully; Develops alternative solutions; Works well in group problem solving situations; Uses reason even when dealing with emotional topics.
3. Interpersonal Skills - Solution-oriented; Maintains confidentiality; Listens to others without interrupting; Keeps emotions under control; Remains open to others' ideas and tries new things.
4. Oral Communication - Speaks clearly and persuasively; Listens and gets clarification; Tailors the content of speech to the level and experience of the audience; Uses appropriate grammar and choice of words in oral speech; Organizes ideas clearly in oral speech; Responds well to questions; Demonstrates group presentation skills; Participates in meetings.
5. Written Communication - Writes clearly and informatively; Edits work for spelling and grammar; Varies writing style to meet needs; Presents numerical data effectively; Able to read and interpret written information.
6. Teamwork- Balances team and individual responsibilities; Exhibits objectivity and openness to others' views; Gives and welcomes feedback; Contributes to building a positive team spirit; Puts success of team above own interests; Able to build morale and group commitments to goals and objectives; Supports everyone's efforts to succeed; Listens and responds constructively to other team members' ideas; Offers support for others' ideas and proposals; Is open with other team members about his/her concerns; Expresses disagreement constructively.
7. Professionalism -Approaches others in a tactful manner; Reacts well under pressure; Treats others with respect and consideration regardless of their status or position; Accepts responsibility for own actions; Follows through on commitments.
8. Quality- Demonstrates accuracy and thoroughness; Looks for ways to improve and promote quality; Applies feedback to improve performance; Monitors own work to ensure quality.
9. Attendance/Punctuality- Is consistently at work and on time; Ensures work responsibilities are covered when absent; Arrives at meetings and appointments on time.
10. Dependability- Follows instructions, responds to management direction; Takes responsibility for own actions; Keeps commitments; Commits to long hours of work when necessary to reach goals. Completes tasks on time or notifies appropriate person with an alternate plan.
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Qualifications: To perform this job successfully, an individual must be able to perform each essential duty satisfactorily. The requirements listed below are representative of the knowledge, skill, and/or ability required. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.
Education and/or Experience: Bachelor's degree (BA) from four-year college or university in, communications, public relations, or a related field and two years of progressively responsible experience in communications, public relations or community outreach at a public agency, communications/advertising firm, or electric utility. Experience working in a public utility and/or a Community Choice Aggregate entity is desirable.
Language Skills: Ability to read and interpret documents. Ability to write routine reports, and correspondence. Ability to speak effectively before community groups, governing boards or employees of member and potential member organization.
Reasoning Ability: Ability to solve practical problems and deal with a variety of concrete variables in situations where only limited standardization exists. Ability to interpret a variety of instructions furnished in written, oral, diagram, or schedule form.
Computer Skills: To perform this job successfully, an individual should have knowledge of Internet software, Adobe suite for graphic design and the Microsoft Office Suite of products with experience in Excel; Web development tools such as Elementor, WordPress, Google Analytics, SEO tracking tools, and email communications software; Google Suite including Sheets, Docs, and Calendar.
Certificates, Licenses, Registrations: A current CA driver's license and proof of auto insurance are required.
Other Skills and Abilities:
• Ability to engage and coordinate with diverse stakeholders in person, on the phone, and through email to promote and explain Pioneer's services and programs • Establish and maintain working relationships with stakeholders and potential partners • Multitask on several projects while delivering a consistent, high-quality and timely work product
• Work independently to resolve issues quickly and effectively • Work as part of a collaborative team
• Adapt to changing priorities in a fast paced, dynamic environment • Demonstrate patience, tact, courtesy and flexibility
• Fully interpret and explain energy data and statistics to stakeholders in a simple and understandable manner
• Strong interpersonal communication skills
• Sound decision making and creative problem-solving skills • Professional and effective engagement with stakeholders and customers Work Environment: The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable Pl~~NEER
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accommodations may be made to enable individuals with disabilities to perform the essential functions.
Acknowledgements: I have reviewed and understand the above job description and believe it to be accurate and complete. I also understand that the company retains the right to change this job description at any time. I also understand that this job description is not a contract for work.
I certify that I possess all of the "Essential Requirements" of the job outlined herein, except as noted here (If none, so state): ____________________ _
I certify that I am fully capable (with or without a reasonable accommodation) of performing all of the essential functions documented herein, and I do not have a physical or mental disability that would jeopardize the health and or safety of my co-workers.
D I do not require an accommodation in order to perform the essential functions of this job as indicated in this job description.
D I require an accommodation in order to perform the essential function of this job as indicated on this job description. The accommodation I require is:
I understand, and fully agree, that this job description does not constitute a written or implied contract for employment and that my employment relationship with the company is "at will," for an unspecified duration, and may be terminated at any time by me or the company as specified by Section 2922 of the California Labor Code.
Employee's Signature Date
Supervisor's Signature Date
Exhibit B
SALARY SCHEDULE FISCAL VEAR 2023-24
Class/Position Title Minimum Maximum
Administrative Assistant $51,642 $77,206
Account Representative I $78,563 $117,453
Account Representative II $86,420 $129,197
Board Clerk/Executive Assistant $75,377 $112,689
Chief Operating Officer $205,581 $307,344
Commercial Coordinator $89,143 $133,267
Community Outreach Manager $120,911 $180,760
Communications Coordinator * $72,483 $108,361
Customer Care Coordinator $89,143 $133,267
Customer Care Manager $109,245 $163,321
Director of Finance and Administration $165,126 $246,852 Director of Public Affairs, Marketing and Programs $165,126 $246,852 Executive Director $239,314 $357,773
Financial and Administrative Analyst I $72,483 $108,361 Financial and Administrative Analyst 11 $79,731 $119,197 Internal Operations Coordinator $102,515 $153,258
Key Accounts Manager $109,245 $163,321
Legislative and Regulatory Analyst I $91,647 $137,014
Legislative and Regulatory Analyst II $100,812 $150,715 Legislative and Regulatory Manager $120,910 $180,760
Management Analyst $91,647 $137,014
Manager, Quantitative Analysis and Modeling $115,934 $173,322 Power Resources Manager $115,934 $173,322
Power Resources Analyst I $91,112 $136,212
Power Supply Contract Manager $115,934 $173,322
Program Manager $102,515 $153,258
Program Specialist I $93,194 $139,326
Residential Coordinator $89,143 $133,267
Senior Commercial Coordinator $102,515 $153,258
Senior Financial Analyst $101,300 $151,438
Senior Manager, Quantitative Analysis and Modeling $127,527 $190,654 Senior Residential Coordinator $102,515 $153,258
* New Position
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Staff Report - Item 2
To: The Governing Board
From: Donald Eckert, Executive Director
Item 2: Kick-Off of Fiscal Year 2024-2027 Strategic Planning Process Date: 3/21/2024
RECOMMENDATION
Receive report to kick-off the Fiscal Year ("FY") 2024-2027 strategic planning process.
BACKGROUND
Staff conducted workshops with the Governing Board ("Board") in May 2021 to reveal the priorities of the Board and set the foundation for the creation of Pioneer's inaugural strategic plan.
At the July 15, 2021, Board meeting, the Board adopted the Mission, Vision, and Priorities of the strategic plan.
At the September 16, 2021, Board meeting, the Board adopted the FY 2021-2024 Strategic Plan.
ANALYSIS & DISCUSSION
With Pioneer's current strategic plan nearing the end of its term, there is a need to review Pioneer's Mission, Vision and Priorities with the Board and set goals for the next three years. As staff begin to develop the FY 2024-25 Operating Budget, the timing is right to begin work on the strategic plan which is a significant input into the budget process.
Strategic planning is the process of documenting and establishing a direction of Pioneer by assessing Pioneer's current state and the vision of where the agency wants to be. The strategic plan provides staff with a reference point to remind them what the mission is, the vision of where we want to be, and the goals supporting the priorities that is the roadmap to reach the vision. The strategic planning process plays a pivotal role in Pioneer's success as it becomes a tool to help staff appropriately respond to opportunities and challenges.
Mission Statement: Pioneer Community Energy is a locally owned provider of electricity - powering the communities we serve with competitive rates, reliable service, and a choice in energy options.
Vision Statement: A community partner in reliable energy solutions and positive local impact, powering today and empowering tomorrow.
The following is a status of priorities and goals within those priorities:
Agenda Item: 2 Agenda Date: 3/21/2024
Local Enaaaement
Obiective Status Comment
While we have not yet achieved an overall participation rate of 92%, lessons were learned from the El Dorado
Reinforce community listening channels by increasing expansion and applied to Nevada City and Grass Valley engagement with current, returning, and future YELLOW that resulted in a 98% participation rate in those customers. Achieve an overall 92% participation rate. communities. The participation rate has stabilized and believe the education and marketing seeds planted in
2023 will contribute to improvements in participation in the future.
Residents and businesses are the backbone of our Pioneer has either directly or indirectly reached out to communities. Pioneer will work to strengthen GREEN our top 100 customers. Our participation rate in the comprehensive relationships, which includes engaging business sector is an overall 92% with >95% in the the top 20 commercial and industrial customers. larqe commercial and industrial accounts.
The Community Programs Advisory Committee
Launch a Community Program Advisory Committee GREEN launched in 2021. Sunset with a report to the Board in late 2022. Resumed as a Community Advisory
Committee in 2024.
Staff will increase the agency's presence within the Staff has been and will continue to be active in our GREEN communities by participating in forums, county fairs, communities we serve by participating in local events chamber events and other communitv oraanization.
Grow engagement and reach communications channels Pioneer has devoted resources to be very active in and ensure all platforms are providing engagement GREEN communications in both in-person events, social media, opportunities for residents and loca I businesses TV, radio and newspapers.
Emolover of Choice
Obiective Status Comment
Conduct a biennial compensation and benefits study to A study was done in 2022 to gauge our ensure competitive wages and enhance employee GREEN competitiveness and appropriate updates were retention. implemented. Will move to triennial studies with the next one in 2025.
(1) Annual surveys are conducted at the beginning of
the calendar year. Results of those surveys shape our
Uphold Pioneer's culture through internal benefits package by introducing effective hea Ith and communication channels and team engagement welfare changes; (2) Management does make good opportunities: (1) Conduct an annual staff survey; (2) GREEN effort to conduct quarterly appreciate lunches and Quarterly team building activities; (3) Invest in events and most recently supported a volunteer event professional development. at Placer Food Bank; (3) A tuition and professional development reimbursement policy was adopted in
2022 to support continuing education of our
employees.
Agenda Item: 2 Agenda Date: 3/21/2024
Financial Stabilitv & Strateaic Growth
Obiective Status Comment
Pursue expansion opportunities with like-minded Since the launch of the strategic plan in 2021, Pioneer communities by initiating conversations with leadership GREEN has added El Dorado County, Placerville, Nevada City, within the jurisdictions. and Grass Valley. Opportunities for expansion is being evaluated on an onaoina basis.
An expansion policy was adopted by the Board in 2022
that guides our growth. The requirements that Pioneer
Build policies and procedures that facilitate growth of GREEN expand with like-minded communities when it uur service d red. financially prudent was applied In 2023 with the deferral of allowing Nevada County to join due to the
state of the power supply markets.
Policies were developed and eventually adopted by the
Adopt policies that support the achievement of cash GREEN Board in late 2021. Those financial policies have been
reserve targets. the cornerstone in the rate setting process resulting in sustainable savings to ratepayers and a financially
stable utilitv.
Achieve an investment grade credit rating. GREEN Pioneer received an A- credit rating with a long-term outlook of stable from S&P Global in February 2024.
Maintain participation in legislative and regulatory Most of the PCIA issues have subsided but Pioneer is proceedings that positively impact the Power Charge Indifference Adjustment rate, advocate for cost- GREEN
active in the regulatory and legislative fronts through savings legislation and regulations, and work to hold education of legislators on the positive impacts of PG&E accountable through legislation including SB612, biomass generation, through the passing of AB843 and PCIA transparency efforts, and AB843. a nnua I legislative platforms introduced to the Boa rd.
Oualitv of Service
Obiective Status Comment
Providing excellent customer service is a priority for
Maintain the trust and responsiveness Pioneer Pioneer and it distinguishes us from our competitor. customers expect in their service experiences: (1) We hold our call center accountable and when a Ensure quick response times to customer service GREEN customer calls our office or visits us personally, they inquiries; (2) Monitor and evaluate Calpine call center always receive prompt, courteous service with accurate and billing services performance quarterly. answers to their questions. Staff has introduced website improvements and a ChatBot to improve the
customer exoerience.
Keep Pioneer's rates competitive through policies and
programs that ensure rate stability and a choice in The Board has been consistent that rates are the top power: (1) Commit to a policy that strengthens priority and by the end of 2024, Pioneer will have Pioneer's response to rate volatility in the energy GREEN delivered $120 million in utility bill savings since launch markets; (2) Develop a cost-effective, grid-resilient in 2018. The introduction of programs in 2024 will product to increase access for business community further support rate stability and grid resiliency. members interested in ioining Pioneer.
(1) Pioneer's competitive rates are economic
Prioritize community programs and develop new development rates but another way Pioneer can service programs; (1) Explore economic development incentive business growth is through the offering of rates to incentivize businesses to move to the territory GREEN the Greenl00 rate that allows businesses to meet that creates local jobs; (2) Explore rate programs that their environmental goals; (2) Board adopted a Feed-incentive local solar and biomass project development. In Tariff program that incentives local investment in biomass and sma II-hydro projects in our service
territorv.
Agenda Item: 2 Agenda Date: 3/21/2024
Ooerational Excellence
Obiective Status Comment
Pioneer is part of a joint CCA effort to introduce
Continue grid resiliency efforts to mitigate PSPS events oversight of PG&E's Fast Trip program that in our communities YELLOW disproportionally impacts our service territory. Pioneer will be launching a solar+ storage program for
residences this June will enhance reliability.
Position our business portfolio to be capable of With the near completion of AB843 through the CPUC divergification through the development of one YELLOW process and the introduction of the Feed-In Ta riff biomass project. program, Pioneer is well positioned to break ground on a biomass facility in the next twelve months.
Power procurement is 92% of the operating budget.
Pioneer's expertise in power procurement maintains
Diversify Pioneer's energy procurement by issuing RFPs our rate competitiveness. Staff continues to diversify to potential partners to procure energy at "least cost, GREEN the portfolio by not depending one one supplier or one best fit" for the portfolio. technology and recently introduced to the Boa rd a software optimization program that will create value
with a new solar+ storage project coming online in
2024.
Pioneer invest millions each year through purchases
Target diversification of Pioneer's power source GREEN with regional suppliers such as El Dorado Irrigation portfolio through procurement with regional suppliers. District, Placer County Water Agency and Renewable Enerav Certificates with SPI's biomass olant in Lincoln.
Maintain zero customer data breach incidents trough Pioneer conducts annual cybersecurity audits to investment in Information Technology resources: (1) protect both our customer and employee data. As part Conduct annual IT Cybersecurity audits and improve GREEN of the audits, we make improvements to our firewalls employee cybersecurity awareness through training and consistently train our employees on cybersecurity and consistent messaging. awareness through phishing tests. To date, Pioneer has had zero data breached events.
Next Steps
Pioneer is please to re-engage with Kim Tucker to facilitate the planning process. She did a wonderful job with our inaugural plan and look forward to her direction this year. The following table is a high-level schedule of the process:
Kick-Off the pla nninq process
Staff input on goals and objectives
In-dept discussion with the Board
Presentation of findings to the Board
Review final plan
Adopt FY 2024-2027 Strategic Plan
STRATEGIC PLAN
March March April
r-----1 [-----]
r-----1
The report supports all priorities of the strategic plan.
FISCAL IMPACT
There is no fiscal impact with this report.
ATTACHMENTS
1. FY 2021-2024 Strategic Plan
May lune September
[=====]
Strategic Plan
1 2021–2024
STRATEGIC PLAN
Prepared by JSR Strategies | September 8, 2021
Strategic Plan 2
A Letter to Our Pioneer Community
Planning Promotes Confidence
The 2021–2024 Strategic Plan identifies opportunities with which we stand to make the greatest improvement and those areas where we need to mitigate risk. Although we are in stable financial condition and our core business is sound, Pioneer’s work is not done.
During the coming three years, our adaptive strategies will focus on diversifying our energy supply portfolio using a comprehensive analysis process to develop and update our Integrated Resource Plan. We will seek opportunities to optimize our resources, focus on grid resiliency, and hone partnerships with our various stakeholders.
Decisions come with financial implications; hence the need for reasonable forecasting, scenario modeling, and risk management.
Relationships Matter
Through a focused employee engagement and strategic ownership process, Pioneer team members at every level are positioned to make meaningful contributions toward the initiatives and goals outlined in this document. The intrinsic understanding and alignment around Pioneer’s values and collective goals will help to better promote organizational success.
Externally, our focus will remain on our local communities and assisting them with their energy needs. Time and attention will be spent with regulators, legislators, and other key decision-makers to influence outcomes to help reduce costs and improve the quality of life for our customers. Through education, collaboration, and a willingness to do what is in the best interest of our customers, we will navigate the changing business environment with confidence.
Input from stakeholders gathered at strategic planning workshops held in May 2021 was crucial in developing the inaugural edition of the Strategic Plan. I want to express my sincere appreciation and thanks to the Board of Directors and our Pioneer team for their commitment to — and valuable support of — this important effort.
Embracing the Future
We know change will continue to accelerate, and while change often isn’t easy, it also brings opportunities. At Pioneer, we’re embracing the future with confidence. As a united team, Pioneer employees look forward to proudly serving the energy needs of our owner communities in a reliable, environmentally responsible, and competitively priced manner.
Here’s to the future,
Donald Eckert
Executive Director
Pioneer Community Energy
Being a community-owned, nonprofit utility means putting our customers and community at the heart of everything we do at Pioneer Community Energy. While change is transforming virtually every aspect of our business, Pioneer’s purpose won’t change.
We exist to enhance the quality of life for our customers and community. What will change is our need to deliver value in new ways to meet the evolving expectations of our customers and the communities we serve.
Actions Fuel Success
I’m proud to share significant successes in Fiscal Year 2021.
Some examples include:
• The Governing Board approved the expansion of Pioneer’s service territory to include unincorporated El Dorado
County and the City of Placerville. Representatives from the expansion territory joined the Board in March 2021, and Pioneer will begin service in January 2022.
• Pioneer conducted the inaugural customer survey to
residents and commercial and industrial customers. We
listened to our customers, and in June 2021, Pioneer
launched the Green100 rate that gives customers the option to meet their energy needs from 100% renewable sources. • Through fiscal management, Pioneer maintained its rates and has not changed them since 2019. Since Pioneer’s formation in 2018 through 2020, we have saved our communities $32.5 million on their utility bills compared with PG&E’s rates. • When Pioneer launched, it accumulated debt with Placer County Treasury in providing working capital. The debt to the County Treasury was paid in full in May 2021.
• Pioneer signed a contract with El Dorado Irrigation District (EID) for power generated by its hydroelectric facility over the next 10 years. The contract represents Pioneer’s commitment to investing in local projects focusing on renewable energy sources.
This partnership provides a mutually beneficial arrangement that meets EID’s hydroelectric generation goals while providing Pioneer with cost-effective, clean electricity for ratepayers. • Pioneer and Park Billing Company, Inc., signed a settlement agreement regarding electric generation rates charged to mobile home park (MHP) residents in the Pioneer service area, ensuring that MHP residents receive the benefits of Pioneer’s competitive rates. This issue was addressed by SB 1117, which was passed by the California Legislature and signed by Governor Newsom in September 2020. The new
law protects all MHP residents in the state.
Strategic Plan 3
Pioneer Board Members
Local representation of our region can be seen throughout Pioneer’s Joint Powers Authority and Board of Directors. With their leadership, Pioneer provides the communities we serve a choice in power. 80 80
50 50
45 45
89 89
267
Colfax
SMUD
Liberty Energy
Roseville Electric
Pioneer and PG&E
Auburn
Loomis
Rocklin
Lincoln
Roseville Placerville
Coloma
Tahoe City
Kings Beach
PLACER
UTILITY SERVICE AREAS
EL DORADO
JIM HOLMES
Chair, Placer County
Board of Supervisors
JEFF DUNCAN
Vice Chair, Mayor,
Loomis Town Council
JOHN HIDAHL
El Dorado County
Board of Suoervisors
SUZANNE JONES ALICE DOWDIN CALVILLO
Placer County
Board of Supervisors
Auburn City Council
GREG JANDA
Rocklin City Council
DAN KARLESKINT WES HEATHCOCK MICHAEL SARAGOSA
■
■
■
■
Lincoln City Council Colfax City Manager Placerville City Council Outreach Plan 4
Community Choice Aggregation and the delivery of reliable, independent electricity is a complex and constantly evolving field. To remain focused and effectively meet the needs of the region, Pioneer Community Energy developed the 2021–2024 Strategic Plan as a road map to continue its role as a leader in community-based power and guide the success of our current and future initiatives.
The Strategic Plan was developed through collaborative work with the Board of Directors and research across stakeholder groups. The process included several planning sessions in 2021 that garnered information regarding who Pioneer serves, clarity on our role, and distinguishing factors as a regional partner in Community Choice Aggregation. Our process confirmed organizational direction and established the foundational statements highlighted in this Strategic Plan.
Mission Statement
Pioneer Community Energy is a locally owned provider of electricity — powering the communities we serve with competitive rates, reliable service, and a choice in energy options.
Vision Statement
A community partner in reliable energy solutions and positive local impact, powering today and empowering tomorrow.
Values Statement
Pioneer Community Energy is powered by our values of reliability, excellence, independence and placing our community first. We put these values to work every day for our customers and our team members throughout our region.
Strategic Priorities will guide the goals of this plan and focus on initiatives that reinforce our commitment to local engagement, quality in service, being an employer of choice, upholding operational excellence, and ensuring financial stability and strategic growth.
To optimize outcomes for the strategic goals and objectives in this plan, key performance indicators will be monitored on an ongoing basis, with accountability reports on progress shared by staff. Adjustments to processes implementing the Strategic Plan will be made as needed by the appropriate department, and an end-of-year report will be published by Pioneer Community Energy as part of its Outreach Plan to share impact and community benefit over three years.
Pioneer is pleased to present the 2021–2024 Strategic Plan, as it marks a historic moment for our organization and will foster a period of remarkable growth and collaboration. This would not be possible without the support and shared commitment of our Board of Directors and dedicated staff. Thanks to the support of these stakeholders, Pioneer will be trailblazing renewable energy pathways and maintaining a strong foothold in the region.
Executive Summary
Strategic Plan 5
Since its launch in February 2018, Pioneer Community Energy has provided reliable electricity, competitive rates, and community-focused programs consistent with the needs of our service territory. One of 23 California Community Choice Aggregators, Pioneer is led by local representatives from a nine-member Board of Directors and currently serves over 93,000 meters (1,100,000 MWh) in Placer County. In order to extend the benefits of community choice to our neighboring cities and counties and protect competitive rates, Pioneer will add approximately 68,000 meters (739,000 MWh) once its expansion into Placerville and unincorporated El Dorado County is underway in early 2022.
Our Power. Our Choice.
To date, Pioneer’s programs focus on energy independence through long-term contracts managing megawatt costs and pursuing sustainability initiatives through hydroelectric, biomass, and other renewable energy sources. Offering customers a choice in power from 100% renewable sources, Pioneer’s Green100 Program received a strong response from the community and welcomed over 100 participants who opted-in during the program’s first 30 days in 2021.
Pioneer has become a leader in regional sustainability by pursuing renewable energy sources and negotiating contracts with like-minded partners in electricity generation. Operating in a constantly shifting environmental landscape, this local control of electrical power has helped mitigate the impacts of rolling blackouts and Public Safety Power Shutoff events in the communities we serve.
Providing Superior Value through Energy Independence
Pioneer customers have enjoyed benefits beyond having a choice in energy and independence from PG&E. Since the organization’s launch, residents, businesses, and agricultural customers have saved more than $32.5 million on electricity from 2018 through 2020.
Organizational Overview
& Historic Background
CCA CUSTOMERS OPERATING REVENUE AVERAGE RATE ($/MWh)
Central Coast Community Energy 265,923 $238.3 million $81.44 CleanPowerSF 311,777 $167.8 million $80.47
East Bay Community Energy 546,707 $463.4 million $80.72 MCE Clean Energy 473,826 $416.1 million $77.01
Peninsula Clean Energy 287,987 $278.1 million $77.87
Pioneer Community Energy 87,704 $72.5 million $69.02
San Jose Clean Energy 243,436 $337.0 million $89.71
Sonoma Clean Energy 225,973 $170.8 million $76.16
Silicon Valley Clean Energy 264,215 $292.5 million $75.75 Average 281,358 $246.8 million $79.76
Pioneer Community Energy maintains one of the lowest energy rates among California Community Choice Aggregators, according to financial statements consolidated by Goldman Sachs and audited data reported by CCA Review.
Pioneer Customers Total Savings | Feb. 2018 – Nov. 2020 Residental Customers
Total Savings
Commercial Customers
Total Savings
Agricultural Customers
Total Savings
$18,658,191 $10,924,457
Industrial Customers
Total Savings
$2,544,002
Average Annual Savings – $80,315 Average Annual Savings – $353 Average Annual Savings – $93 Average Annual Savings
Sm. $180; Med. $2,291; Lg. $2,781
$289,681
$32.5 Million
Pioneer Customers Total Savings | Feb. 2018 – Nov. 2020 Residental Customers
Total Savings
Commercial Customers
Total Savings
Agricultural Customers
Total Savings
$18,658,191 $10,924,457
Industrial Customers
Total Savings
$2,544,002
Average Annual Savings – $80,315 Average Annual Savings – $353 Average Annual Savings – $93 Average Annual Savings
Sm. $180; Med. $2,291; Lg. $2,781
$289,681
$32.5 Million
Pioneer Customers Total Savings | Feb. 2018 – Nov. 2020 Residental Customers
Total Savings
Commercial Customers
Total Savings
Agricultural Customers
Total Savings
$18,658,191 $10,924,457
Industrial Customers
Total Savings
$2,544,002
Average Annual Savings – $80,315 Average Annual Savings – $353 Average Annual Savings – $93 Average Annual Savings
Sm. $180; Med. $2,291; Lg. $2,781
$289,681
$32.5 Million
Pioneer was built to provide stable and competitive rates. To date, we have averaged an overall generation rate of 8.15% lower than PG&E. Pioneer has kept generation costs stable since October 2019 and has the lowest generation rate compared with other Community Choice Aggregators in the state.
Strategic Plan 6
In 2021, the Power Charge Indifference Adjustment (PCIA) imposed by PG&E increased, which added to customer costs. Despite these increased fees, Pioneer’s rates remained low and stable. PG&E’s PCIA fee fluctuates annually but will sunset as PG&E’s expensive contracts expire. Although some Pioneer rate classes remain lower than PG&E’s, the latest increase has caused other customer rate classes to be higher than PG&E’s.
The reliability and value of Pioneer’s services position the organization for its expansion into new markets. As Pioneer expands its service area, the increase in volume will shore up energy independence from PG&E and protect rates through growth in reserves.
Local Advocacy for the Region
Pioneer champions legislative and regulatory policies to power the communities we serve. Our commitment to providing stable rates and dependable service aligns with some of the region’s most pressing environmental and public safety needs. Reducing the risk of wildfire, mitigating impacts of Public Safety Power Shutoffs (PSPSs), and expanding access to renewable power sources are some of the complex and ever-changing issues we address through our organization’s current and future-focused initiatives.
Helping Create Wildfire-resistant Communities
Pioneer is progressing toward funding and infrastructure supporting a local biomass program. By co-authoring legislation and providing lead testimony on Assembly Bills AB 843, AB 332, and AB 1519, Pioneer has advocated for initiatives that help power substations during PSPS events, fund bioenergy projects, and pave the way for reducing wildfire fuels in the region’s forests.
Advocacy for funding from the California Energy Commission has garnered well-deserved funds for the region and promoted wildfire resilience through grants and programs supporting bioenergy projects.
CalFire Forest Health Grants
Pioneer secured funding to get
combustible materials out of forests in
Placer and El Dorado counties.
CalFire Wood Products Team
Pioneer is pursuing participation in this
program, which provides opportunities in
biomass resource recovery.
Local Advocacy for the Region
CalRecycle
Pioneer is investigating funding
opportunities through this program
related to organic waste recovery aligned
with California standards.
Western Placer County
Waste Management Authority
Pioneer is moving forward with biomass
agreements with regional partners at
Western Placer County Waste Management
Authority – preliminary site location
identified with conceptual design.
Sierra Pacific Industries (SPI)
Pioneer forged a 10-year partnership
agreement with SPI, ensuring the
purchase of locally produced energy
from renewable sources.
Outreach Plan 7
Powering Community Benefit
Pioneer invests in supporting the communities we serve with recession-proof, pandemic-resilient initiatives. The California energy industry is a $138 billion business, and we believe our region’s dollars should be reinvested in the local community, not distributed among shareholders.
Pioneer’s commitment to its community — not shareholders — can be seen in its customer savings and its work to advance the local economy and create local jobs.
• Pioneer introduced the Arrearage Management Plan (AMP) program to help customers during the pandemic. The AMP program helps qualifying residential customers reconcile unpaid balances on their bills by offering up to $8,000 in debt forgiveness for on-time payments. • In 2020 alone, Pioneer contributed $4.9 million locally:
» $3.5 million to the local economy.
» $1.4 million through the mPOWER program to local residents and businesses.
Community Benefit In Action
• Over $3.5 million contributed to the local/regional economy in 2020. • Arrearage Management Plan – Debt forgiveness program for customers utility debt accrued during the COVID-19 pandemic. • Participating in development of a Percentage Income Payment Plan to help customers maintain control over utility balances and conserve energy.
• Small Business Payment Plans to support regional businesses in taking on the impacts of the pandemic and bolstering their recovery.
• Pioneer’s agreement with El Dorado Irrigation District (EID) will be more than $40 million in economic development actualized over the next ten years and will provide locally sourced hydroelectric energy as one of many renewable options for customers.
Strategic Plan 8
Following a series of planning meetings, the Pioneer Board of Directors provided landmark organizational direction approving Pioneer’s mission, vision, and values statements. Our mission statement helps define us and what we do in service to the residents within our coverage territory and focuses on the work we do every day. Our vision statement identifies our commitment to partnering for the good of our community and describes the future we’re continually working toward.
Foundational Statements
Community First
We are powered by the communities
we serve — not corporate shareholders.
From the local Board of Directors
representing our region to local
customer service representatives who
are a phone call away, we provide energy
for the community, by the community.
Mission Statement Vision Statement
Values Statements
Our organizational values define how we behave in the delivery of our mission and in the achievement of our vision. We believe it is important to stand for something and be accountable to those we serve. The following four values guide the way we prioritize and deliver our work and help shape a dynamic culture where our people thrive.
Pioneer Community Energy is a locally owned
provider of electricity — powering the communities
we serve with competitive rates, reliable service, and
a choice in energy options.
A community partner in reliable energy solutions
and positive local impact, powering today and
empowering tomorrow.
Reliable
We know our customers depend on us, and
we go above and beyond to provide stable
and competitive rates while working to
minimize rotating outages and Public Safety
Power Shutoffs. The communities we serve
can rely on us to be a transparent and ethical
source of power.
Excellence
We instill excellence throughout
our service. This means delivering a
professional customer service experience
and focusing our work on providing
dependable sources of electricity.
Powering what matters most in our
community is our priority.
Independence
Independence distinguishes Pioneer
from investor-owned PG&E. Because we
are community-owned, we advocate for
the region and offer a choice in energy.
Pioneer invests in local businesses, grid
resiliency, and community well-being —
not corporate payouts.
Strategic Plan 9
Pioneer Community Energy was created to serve the needs of our region. As a steward of Placer County and El Dorado County resources, Pioneer strives to excel in each of its strategic priorities. These Strategic Priorities are actionable and are demonstrated throughout our work and organizational goals and objectives.
Strategic Priorities
Local
Engagement
Quality in
Service
Employer
of Choice
Financial
Stability &
Strategic
Growth
Operational
Excellence
Local Engagement
• Listen to our customers.
• Grow our relationships with
residents and businesses.
• Launch a Community Program
Advisory Committee.
Financial Stability &
Strategic Growth
• Pursue expansion
opportunities.
• Achieve an investment-grade credit rating.
• Participate in legislative and
regulatory proceedings that
support our customers.
Operation Excellence
• Continue grid resiliency
efforts to mitigate PSPS.
• Develop one
biomass project.
• Diversify Pioneer’s
energy procurement.
Quality in Service
• Ensure the highest quality
customer service.
• Keep rates stable
and competitive.
• Launch community
requested programs.
Employer of Choice
• Conduct biennial compensation
and benefits study.
• Uphold Pioneer’s company culture.
Outreach Plan 10
Strategic Priority 1: Local Engagement
Pioneer’s distinguishing feature compared with investor-owned utility companies is our ownership structure. Local control is significant to our region, and therefore local engagement is essential to fulfilling our mission. We know Pioneer customers want a choice, and it is incumbent upon us to establish and nurture relationships within our local communities. We don’t take our customers for granted, and we are committed to not only serving our customers but also representing them. We use the following strategies and tactics to achieve this goal.
Objective 1.1: Reinforce community listening channels by increasing engagement with current, returning, and future customers. Achieve a 92% participation rate by Dec. 31, 2023.
Objective 1.2: Residents and businesses are the backbone of our communities.
Pioneer will work to strengthen comprehensive relationships, which includes engaging the top 20 commercial and industrial customers in each county we serve by June 30, 2022.
Objective 1.3: Launch a Community Program Advisory Committee in 2021.
Objective 1.4: Pioneer staff will increase the organization’s presence within the communities we serve by participating in local events.
Objective 1.5: Grow engagement and reach of communications channels and ensure all platforms are providing engagement opportunities for residents and local businesses.
• In 2022, increase social media presence and followers on Facebook by 400%. • Conduct an annual customer survey in winter 2022.
• Increase presence in El Dorado County through targeted social media and digital ad buys.
Strategic Priority 2: 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 our commitment to quality service. This means we listen to our customers and respond to meet their needs.
Objective 2.1: Maintain the trust and responsiveness Pioneer customers expect in their service experiences.
• Ensure quick response times to customer service inquiries. • Monitor and evaluate Calpine call center and billing services performance quarterly.
Objective 2.2: Keep Pioneer’s rates competitive through policies and programs that ensure stability and a choice in power.
• Commit to a policy that strengthens Pioneer’s response to rate volatility in the energy market by Dec. 31, 2021.
• Develop a cost-effective, grid-resilient product to increase access for business community members interested in joining Pioneer.
Objective 2.3: Prioritize community programs and develop new service programs by Dec. 31, 2022.
• Begin exploring economic development rates to incentivize businesses to move to the territory, using subsidized rates that benefit the community. • Explore rate programs that incentivize local solar and biomass project development.
Outreach Plan 11
Strategic Priority 3: Employer of Choice
Pioneer team members are foundational to our success. We attract qualified staff and provide necessary training while fostering an environment that promotes workforce loyalty.
Objective 3.1: Conduct a biennial compensation and benefits study to ensure competitive wages and enhance employee retention.
Objective 3.2: Uphold Pioneer’s company culture through internal communication channels and team engagement opportunities.
• Conduct an annual all-staff survey.
• Lead quarterly team-building activities.
• Invest in employee professional development pathways.
Strategic Priority 4: Operational Excellence
Reliability is central to our efforts and a core value of Pioneer. By prioritizing operational excellence, we retain our independence and agility as a provider while supporting our community by offering more options for reliable energy.
Objective 4.1: Continue grid resiliency efforts to mitigate PSPS events in our communities.
Objective 4.2: Position our business portfolio to be capable of diversification through the development of one biomass project.
Objective 4.3: Diversify Pioneer’s energy procurement by issuing requests for proposals to potential partners to procure energy at “least cost, best fit” for the portfolio.
Objective 4.4: Target diversification of Pioneer’s power source portfolio through procurement with regional suppliers.
Objective 4.5: Maintain zero customer data breach incidents through investment in Information Technology (IT) resources.
• Conduct annual IT cybersecurity audits and improve employee cybersecurity awareness through training and consistent messaging.
Strategic Priority 5: Financial Stability & Strategic Growth Pioneer operates in a manner that ensures financial stability and delivers customer value. Service area expansion will allow us to leverage greater collective buying power for our communities, so we will pursue active agency growth to regions that share our values.
Objective 5.1: Pursue expansion opportunities with like-minded communities by initiating conversations with leadership within the jurisdictions.
Objective 5.2: Build policies and procedures that facilitate the growth of our service area.
Objective 5.3: Implement policies that support the achievement of cash reserve targets.
Objective 5.4: Achieve an investment-grade credit rating.
Objective 5.5: Maintain participation in legislative and regulatory proceedings that positively impact the Power Charge Indifference Adjustment (PCIA) rate, advocate for cost-savings legislation and regulations, and work to hold PG&E accountable through legislation including SB 612, OCIA transparency efforts and AB 843.
Outreach Plan 12
Conclusion
Strategic planning is a critical component of effective governance and management for any organization, especially Community Choice Aggregators. The 2021–2024 Strategic Plan outlines key initiatives of Pioneer Community Energy to sustain its success and growth for years to come and will guide fundamental decisions and actions that shape the organization. Thanks to the support and regional leadership of our Board of Directors, we can continue to implement strategies that improve the lives and well-being of people living and working in our region.
Strategic Plan 13
www.pioneercommunityenergy.ca.gov
PIC~NEEA
COMMUNITY ENERGY
Staff Report - Item 3
To: The Governing Board
From: Cianan Mauk, Power Supply Contracts Manager
Item 3: Adopt a Resolution Approving Pioneer Community Energy's Load Management Standards Compliance Plan
Date: March 21, 2024
RECOMMENDATION
Adopt a resolution approving Pioneer Community Energy's (Pioneer) Load Management Standards Compliance Plan (Plan) and authorizing the Plan to be delivered to the California Energy Commission (CEC).
BACKGROUND
In January of 2023, the CEC adopted new Load Management Standards to better align electricity consumption with generator schedules. These standards have the stated goals of encouraging the use of electricity at off-peak hours, encouraging the control of daily and seasonal peak loads to improve electric system efficiency and reliability, lessening, or delaying .the need for new electrical capacity, and reducing fossil fuel consumption and greenhouse gas emissions. These new standards make several requests of all load-serving entities (LSEs), including Pioneer. Among them is the request that Pioneer assess whether the implementation of a marginal cost-based rate will achieve the goals of the regulations and if found not likely to achieve these goals, to provide a list of load-shifting programs that will achieve the stated goals.
Per the requirements of the regulation, a marginal cost-based rate must be assessed under several factors (Cost Effectiveness, Technological Feasibility, Benefits to the Grid, Benefits to Customers, and Equity). This analysis must be conducted for each Pioneer rate class. CEC guidance provides a broad definition for "rate class," so for ease of understanding, Pioneer has divided its rates into two classes: Residential and Commercial/Industrial.
Due to the way the regulations are written and the provided CEC guidance, the Compliance Plan has redundant information . For this reason, a summary has been provided at the end of this document.
This plan is non-binding on Pioneer and all programs discussed on the roadmap will still require future Board authorization. Pioneer is using this opportunity to appraise the Board of its future program plans.
ANALYSIS & DISCUSSION
In weighing the factors prescribed by the regulation, Pioneer finds that marginal cost-based rates are not effective enough considering the associated cost of implementation to achieve the goals of the LMS regulations.
In analyzing studies with data from LSEs that implemented similar rates, Pioneer does not find that the rate leads to consistent load shifting. Pioneer currently has a staff of fourteen individuals with many necessary business functions handled by outside contractors. Implementing a new rate of this type would require significant investment of Pioneer money and staff time. Furthermore, Pioneer does not have access to real time meter data and cannot properly ascertain the costs associated with acquiring said data.
In the alternative of implementing a marginal cost-based rate, Pioneer has developed the following roadmap for programs which will achieve the stated goals of the regulations:
Agenda Item: 3 Agenda Date: 3/21/2024
Program Provider Program Description Progress Date of
Implementation
Participate Energy Pioneer customers Pioneer Board Second Quarter of contract with approved program 2024
Participate Energy for
leased home solar and
storage products.
These customers are
aggregated into a
virtual power plant. It
shifts energy usage by
charging the battery
when times are
cheapest (compared to
self-generation) and
then uses power from
the battery at high-cost hours.
Thule Energy Storage Pioneer customers Under Development Second Quarter of install Thule's 2025
proprietary technology
in line with the air
conditioning system at
low upfront cost to the
customer. This
technology freezes
water into ice during
periods of low demand
and then thaws the ice
as part of the air
conditioning system
during periods of high
demand.
Pioneer would need to Incentivization based Under Development Second Quarter of issue an RFO for a program which pays 2025
provider. Pioneer customers who
shift their energy
usage during peak
demand times.
Virtual Peaker Operates a Distributed Under Development Second Quarter of Energy Resource 2026
Management System
(DERMS) platform.
This platform connects
with customers smart
devices to help shift
energy habits to low-cost hours.
Pioneer would need to EV Charging Under Development Fourth Quarter of 2024 issue an RFO for a Optimization.
provider.
Agenda Item: 3 Agenda Date: 3/21/2024
Budget Considerations and Calculations
Since this plan is non-binding, and all discussed programs on the road map must be approved by the Pioneer Board before implementation, there are no budgetary considerations for this item.
ATTACHMENTS
1. Resolution Approving and Authorizing the Pioneer Load Management Standards Compliance Plan
Before the Governing Board of
Pioneer Community Energy
In the matter of: A Resolution Approving and
Authorizing the Pioneer Load Management
Standards Compliance Plan
Resolution No.: ____ _
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held March 21, 2024, by the following vote on roll call:
Ayes:
Noes:
Absent:
Signed and approved by me after its passage.
Chair of the Governing Board
Attest:
Secretary
WHEREAS, this Resolution approving and authorizing the Pioneer Load Management Standard Compliance Plan has been brought before the Governing Board; and WHEREAS, the California Energy Commission has requested Pioneer Community Energy (Pioneer) to analyze marginal cost-based rates under several factors; and WHEREAS, Pioneer has found that implementing a marginal cost- based rate will not achieve the goals of the Load Management Standards regulations; and WHEREAS, Pioneer has developed a road map of programs to achieve the goals of the Load Management Standards regulation; and
WHEREAS, this road map is non-binding on Pioneer and all programs discussed will require Governing Board approval at a later date before program implementation; and WHEREAS, there is no budgetary impact on the Board approving and adopting the Load Management Standards Compliance Plan.
Resolution 2024-_
March 21, 2024
BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:
1 . The above recitals are true and correct.
2. The Governing Board hereby approves and authorizes the Pioneer Community Energy Load Management Standards Plan.
3. The Governing Board hereby approves and authorizes the submission of the Pioneer Community Energy Load Management Standards Plan to the California Energy Commission.
4. This Resolution shall take effect immediately upon its adoption.
Exhibit A: Pioneer Community Energy's Load Management Standards Compliance Plan 2 Plf~NEER
COMMUNITY ENERGY
Load Management
Standards
Compliance Plan
1 Plf)NEER
COMMUNITY ENERGY
Contents
1. Introduction ............................................................................................................................ 4 I. About CEC & LMS ................................................................................................................ 4 II. About Pioneer ..................................................................................................................... 6 Ill. Format of Analysis .............................................................................................................. 7
2. Rates ....................................................................................................................................... 7 I. Marginal Cost-Based Rates ................................................................................................. 8 A. Cost Effectiveness ........................................................................................................... 8 B. Technological Feasibility ................................................................................................... 11 i. Discussion - Residential ................................................................................................ 12 ii. Discussion - Commercial/Industrial ............................................................................. 12 C. Benefits to the Grid ........................................................................................................... 12 i. Discussion - Residential ................................................................................................ 12 ii. Discussion - Commercial/Industrial ............................................................................. 13 D. Benefits to Customers ...................................................................................................... 13 i. Discussion - Residential & Commercial/Industrial ....................................................... 13 E. Equity ................................................................................................................................ 13 i. Discussion - Residential & Commercial/Industrial ....................................................... 13 F. Conclusion - Rates ............................................................................................................. 14
3. Load Flexibility Programs ...................................................................................................... 14 I. Hardware Programs .......................................................................................................... 15 A. Cost Effectiveness ......................................................................................................... 16 B. Technological Feasibility ............................................................................................... 16 C. Benefits to the Grid ....................................................................................................... 16 D. Benefits to Customers .................................................................................................. 17 E. Equity ............................................................................................................................ 17 F. Conclusion - Hardware Programs ................................................................................ 17
11. Incentive Based Program Paired with Software ............................................................... 17 A. Cost Effectiveness ......................................................................................................... 18 B. Technological Feasibility ............................................................................................... 19 C. Benefits to the Grid ....................................................................................................... 19 2 Pl~,NEER
COMMUNITY ENEAGV
D. Benefits to Customers .................................................................................................. 19 E. Equity ............................................................................................................................ 20 F. Conclusion - Incentive Based Program Paired with Software ...................................... 20 111. Existing Government Programs ........................................................................................ 20 A. Cost Effectiveness ......................................................................................................... 21 B. Technological Feasibility ............................................................................................... 21 C. Benefits to the Grid ....................................................................................................... 22 D. Benefits to Customers .................................................................................................. 22 E. Equity ............................................................................................................................ 22 F. Conclusion - Existing Government Programs ............................................................... 22
4. Summary ............................................................................................................................... 23 3 PIG~NEER
COMMUNITY ENERGY
1. Introduction
Pursuant to California Energy Commission's (CEC) amended Load Management Standards (LMS), this document (Plan) demonstrates how Pioneer Community Energy (Pioneer) intends to meet the articulated goals of the regulation. Pioneer does not accept CEC's belief that they hold jurisdiction over Community Choice Aggregators (CCAs ), and it is participating in this decision voluntarily.
I. About CEC & LMS
The CEC was established and granted specific load planning and management powers by the Warren-Alquist Act of 1974 (known as Load Management Standards). In 2022, LMS was amended, and new regulations were implemented with the broader goals of encouraging the use of electrical energy at off-peak hours, encouraging the control of daily and seasonal peak loads to improve electric system efficiency and reliability, lessening or delaying the need for new electrical capacity, and reducing fossil fuel consumption and greenhouse gas emissions 1 .
The following is Pioneer's roadmap for compliance in the form of a table listing the new requirements, their deadlines, and their respective statuses:
Relevant Section Requirement Deadline Status
§ 1623. l(c) Upload time-dependent July 1, 2023 Complete rates in the Market
Informed Demand
Automation Server
(MIDAS)
§ 1623.1 (a)(l) Evaluate and April 1, 2024 Addressed with this implement a marginal plan
cost-based rate or, in
the alternative, a plan
of programs designed
to achieve the same
goals
§ 1623.1 (a)(3)(A) Submit the plan to CEC 3 0 days after Pioneer In Progress within 30 days of Board approval
Board adoption.
Respond to any
requests for'additional
information or requests
for plan revisions
within 90 days.
§1623(c)(4) Within 1 year of the April 1, 2024 In Progress LMS effective date,
1 §1623.l(a)(l).
4 provide customers
access to their Rate
Identification Numbers
(RIN) on billing
statements and in
online accounts using
both and QR code.
§ 1623( c )(2)(A) Develop and submit to October 1, 2024 In Progress the CEC, in
conjunction with the
other obligated utilities,
a single statewide
standard tool for
authorized rate data
access by third parties
along with the terms
and conditions for use
of the tool. Upon CEC
approval, the tool will
be live and obligated
LSEs must maintain
and improve the tool.
§ 1623 .1 (b )(3) Submit to CEC a list of October 1, 2024 In Progress load flexibility
programs deemed cost-effective with at least
one option for
automating response to
MIDAS signals for
each customer class.
§ 1623.1 (a)(3)(C) Submit annual reports April 1, 2025, and In Progress to CEC demonstrating annually thereafter
implementation of the
Plan, as approved by
the Board.
§1623.l(b)(2) Submit at least one July 1, 2025 In Progress marginal cost-based
rate or program to the
Pioneer Board for
approval for any
customer class where
such a rate will
materially reduce peak
load.
§1623.l(b)(5) Conduct a public No deadline provided In Progress information campaign
to inform and educate
customers on why
marginal cost-based
rates or load flexibility
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programs are needed,
how they are used, and .
how these rates and
programs can save
customers money.
§ 1623.1 (a)(l )(C) Review the Plan at least Triennially Ongoing once every 3 years after
the Plan is adopted by
the Pioneer board.
Submit any updates of
the Plan to the Board if
there is a material
change.
II. About Pioneer
Pioneer is a CCA that serves unincorporated Placer and El Dorado County along with the Town of Loomis and the cities of Auburn, Colfax, Grass Valley, Lincoln, Nevada City, Placerville, and Rocklin2. Pioneer is governed by a Board of Directors made up of elected officials from its member agencies3
. It currently serves approximately 166,000 accounts consuming approximately 2,000 gigawatt hours annually. Pioneer has a relatively small staff compared to other CCAs4.
Currently, the staff is made up of fourteen individuals. Many necessary business functions are handled by outside contractors.
As mentioned previously, per the amended LMS regulations Pioneer must provide a plan that describes how Pioneer will meet the goals of encouraging the use of electrical energy at off-peak hours, encouraging the control of daily and seasonal peak loads to improve electric system efficiency and reliability, lessening or delaying the need for new electrical capacity, and reducing fossil fuel consumption and greenhouse gas emissions5. Specifically, the plan must evaluate marginal cost-based rates for each customer class in terms of cost effectiveness, equity, technological feasibility, benefits to the grid, and benefits to customers6. After weighing these factors, Pioneer may decide that marginal cost-based rates are not necessary and may instead propose programs that enable automated response to marginal cost signal(s) for each customer class and evaluate them based on the previously mentioned factors 7 .
2 Amendment No. 5 to the Amended and Restated Joint Exercise of Powers Agreement for Pioneer Community Energy, Res. No. 2022-26 (2022). 3 Id.
4 https:/lpioneercommunityenergy. org/. (last visited March 7, 2024). 5 §1623.l(a)(l). 6 §1623.l(a)(l)(A).
7 §1623.l(a)(l)(B).
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III. Format of Analysis
The LMS Regulation requires an analysis of marginal time-based rates and any subsequent programs for each customer class8
. In consideration of CEC guidance, Pioneer has
divided Customer Class into two distinct classes - residential and industrial/commercial.
Pursuant to the LMS regulations, marginal time-based rates and the subsequent programs will be analyzed under the following factors:
• Cost Effectiveness,
• Technological Feasibility,
• Benefits to the Grid,
• Benefits to Customers, and
• Equity.
Cost Effectiveness will be broken down individually into Cost and Effectiveness. Where analysis and discussion for each customer class is substantially the same, the sections will be combined.
2.Rates
CCA governing boards have jurisdiction over rate setting for their customers9 . This provides
CCAs with flexibility in how they want to procure energy and correspondingly set rates for the communities that they serve. With that concept in mind, Pioneer has a strong emphasis on keeping ratepayers' costs low.
Implementing new rates involve considerable costs to Pioneer. The Pioneer Board of Directors (Pioneer Board) is required to review rates annually10. However, staff can bring suggested rate changes first to the Finance Committee and then to the Board of Directors. In assessing rates, Pioneer has many considerations. These include traditional business costs such as operating expenses, paying for power supply and regulatory products, and maintaining creditworthiness.
However, unlike traditional utilities, CCAs must also consider the ability of a ratepayer to opt out of service. Because of this, Pioneer (like many other CC As) relies on a strategy of mirroring Large Investor-Owned Utility (IOU) rates with a targeted discount.
The LMS regulations requires the Pioneer Board to assess for approval at least one marginal cost-based rate by June 30, 202711 . Pioneer may apply for approval of a marginal cost-based rate 8 §1623.l(a)(l)(A).
9 Public Utilities Code Section 366.2(c)(3). 1° Financial Policies, (Oct. 21, 2021 ), https://pioneercommunityenergy.org/wp-content/uploads/2022/04/2021-10- 21-Financial-Policies.pdf. 11 § 1623 .1 (b )(2).
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offered by PG&E12. PG&E stated their intent to provide one marginal cost-based rate by January 2027 which Pioneer can mirror upon its implementation 13 . With that in mind, per the requirements of the regulations, Pioneer must assess developing a marginal cost-based rate outside of mirroring one developed by PG&E.
I. Marginal Cost-Based Rates
Marginal cost is calculated as "the sum of the marginal energy cost, the marginal capacity cost (generation, transmission, and distribution), and any other appropriate time- and location-dependent marginal costs, including the locational marginal cost of associated greenhouse gas emissions, on a time interval of no more than one hour 14. Energy cost computations shall reflect locational marginal cost pricing as determined by the associated balancing authority, such as the California Independent System Operator, the Balancing Authority ofNorthern California, or other balancing authority15 . Marginal capacity cost computations shall reflect the variations in the probability and value of system reliability of each component (generation, transmission, and distribution). 16" There is an immediate issue with the provided definition of marginal cost-based rates - Pioneer does not control the transmission and distribution in its service territory so it cannot accurately compute a marginal cost-based rate. Additionally, it is hard to quantify greenhouse gas emission costs. It appears that the regulations intend for these rates to be dynamic, responding to demand on the grid. For ease of reference, this Plan will refer to marginal cost-based rates as Dynamic Pricing.
A. Cost Effectiveness
As mentioned previously, Pioneer relies heavily on outside contractors. Any implementation of dynamic pricing would require amending contracts with multiple contractors. This means that overall cost will be unquantifiable, as the contract amendments will need to be negotiated. To weigh cost against effectiveness, Pioneer believes it is best to assess the effectiveness of Dynamic Pricing first in order to ascertain any unforeseen costs.
1. Effectiveness
Pioneer will analyze "Effectiveness" on whether the implemented rate will consistently lead to the desired load shifting outcome.
12 Id.
13 2023 COMPLIANCE PLAN for the LOAD MANAGEMENTS STANDARDS, D 23-LMS-0l. 14 § 1623. l(b )(1 ).
1s Id.
16 Id.
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In November of 2023, Lawrence Berkeley Lab released a report titled "The use of price-based demand response as a resource in electricity system planning. 17" This paper analyzed twelve utilities use of time-based rates. They included Time of Use Pricing, Real Time Pricing, Variable Peak Pricing, Critical Peak Pricing, and Critical Peak Rebate in their analysis of price-based demand response.
Approximately one-third of the utilities studied did not include price-based demand response in the Integrated Resource Plan (IRP) as they found that there was not sufficient participation to deem it significant in impacting demand 1
8 . Furthermore, of the customers that did participate, their response to price signals was often erratic and hard to predict 19.
In studying participation rate, one utility studied showed a five-fold increase in customer participation from an opt-out model compared to an opt-in model20 . This shows that these pricing schemes are generally unpopular for ratepayers. Consumer advocates have raised serious concerns about opt-out pricing as they can be especially burdensome for low-income ratepayers (See Equity). For CCAs, an opt-out approach presents serious business risks as the ratepayer may choose to opt out of the CCA completely if they are upset with the dynamic rate. A large amount of unexpected opt-outs of CCA service have credit implications which in tum leads to higher procurement costs. This in tum leads to higher rates in order to maintain the financial stability of the CCA.
For the opt-in model, participation ranged from three percent to thirty percent21 . Similarly, a 2016 Department of Energy sponsored study of several utilities found a fifteen percent opt-in rate for dynamic pricing rates22 . This is consistent with several other studies mentioned in the Lawrence Berkeley Lab report, with no dynamic pricing rate exceeding thirty percent enrollment for opt-in participation23 .
In the Lawrence Berkeley Lab study, only one utility reported load reduction for opt-in participation24 . Residential ratepayers of that utility showed load reduction levels eighty to ninety percent lower than other residential customers25 . However, for commercial and industrial ratepayers, the utility found only a ten percent higher load reduction compared to other commercial and industrial ratepayers26 .
As mentioned previously, studies show inconsistent results in using dynamic pricing to achieve consistent demand response. One study showed that automated demand response programs are 17 Juan Pablo Carvallo and Lisa Schwartz, The use of price-based demand response as a resource in electricity system planning, Energy Markets & Policy, Nov. 2023. 18 Id at Pg. 5 19 Id.
20 Id at Pg.7.
21 Id.
22 Dept. of Energy, Customer Acceptance, Retention, and Response to Time-Based Rates from the Consumer Behavior Studies, Electricity Delivery & Energy Reliability, Nov. 2016. 23 Carvallo, supra note 17. 24 Id.
2s Id.
26 Id.
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oven-idden on average 14% of the time27 . This study also found that the longer a demand response event lasts, the more likely automation will be overridden with events lasting from the two to four-hour range being oven-idden up to 30% of the time28 . a. Discussion - Residential
To offset any risk to Pioneer's business model, any dynamic pricing rate would need to be opt-in.
As mentioned above, an opt-out model could lead to a large number of unexpected opt-outs of CCA service. This would have credit implications which in turn would increase procurement costs for the CCA. These costs would then be passed on to the remaining ratepayers in future rate changes, which is a fundamentally inequitable result.
As the studies show, an opt-in model would lead to at best thirty percent participation. However, for this percentage to strongly show load reduction based on price signals, the participating ratepayers would need smaii thermostats29 . For ratepayers that do not have this technology, a method of providing notice (such as automated texts) would need to be developed.
In sum, current evidence does not show that Dynamic Pricing results in consistently shifting energy usage. Furthermore, it shows that that Dynamic Pricing is not popular with ratepayers, which means its aggregate effects may not be substantial. These conclusions mean that Cost should be comparably light for Pioneer to find the exercise a worthwhile endeavor. b. Discussion - Commercial/Industrial
Much of the same logic for residential holds true that any Dynamic Pricing that any program would need to be opt-in rather than opt-out. Depending on the size of the customer, serious automation investments would need to be made. Furthermore, the only datapoint available to determine if there would be actual load reductions and shifts to off-peak hours demonstrates only a ten percent reduction compared to opted out customers. This may be because many commercial/industrial accounts cannot, for business reasons, shift their energy consumption ( e.g.
Target could not shut off its HV AC from 4 p.m. to 9 p.m. without discouraging shoppers from spending time in their store). In sum, there is not enough evidence to show that Dynamic Pricing for commercial/industrial customers would be effective in shifting energy consumption to off-peak hours. 27 Pamela Jordan Wildstein, Quantifying the Impact of Override Behavior on the Performance of a Summer Direct load Control Program, Uni. Of Michigan, April 2022.
2s Id.
29 Carvallo, supra note 17, at Pg. 9
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n. Costs
Pioneer will assess "Costs" based on the actual financial cost to Pioneer.
In creating a new rate class, per regulatory requirements, Pioneer would need to develop the class from the ground up rather than mirroring PG&E classes. This would require first a rate study to determine the amount of ratepayers likely to enroll in the class and the cost the rate needs to be to recoup all expenses related to the rate. The latter factor becomes considerably harder to determine when the rate is dynamic rather than fixed which in turn makes the study more complicated and more expensive. This study would also have to assess the impact the new dynamic rate would have on enrollment in existing classes.
Pioneer is contracted with Calpine to handle billing matters. To institute a new rate class, Pioneer would then need to amend that contract. Outside of the negotiation period, Calpine estimates that instating a dynamic pricing rate would take approximately six months or more. Concurrent with this implementation would be a marketing and outreach campaign to educate ratepayers on the rate and their ability to opt-in to the rate. This would require amending Pioneer's contract with JSR Strategies, Pioneer's marketing consulting vendor.
A. Discussion - Residential & Commercial/Industrial
As mentioned above, process costs for this initiative are unquantifiable as it would require amending several contracts with outside contractors. However, in assessing staff time to renegotiate the contracts and to participate in the initiative itself, the cost would be especially burdensome. Time taken to initiate the dynamic pricing rate and related customer education campaign takes from other pressing matters that Pioneer's staff must handle. As mentioned above, Pioneer has a lean staff model, so staff generally have limited bandwidth outside of their normal job duties. Taking significant time away from core job functions could have unintended cascading effects which could impact Pioneer's business model. In sum, the process costs are especially high for Pioneer to implement a Dynamic Pricing rate at this time.
B. Technological Feasibility
Pioneer will assess "Technological Feasibility" based on whether the requisite technology is commercial and not experimental.
Pioneer is contracted with Calpine to handle billing matters. As a CCA, Pioneer does not have real time access to customer meters. Instead, meter data is handled by PG&E which is then transmitted to Calpine to generate customer invoices. In order to determine if it is technically feasible to implement hourly and sub-hourly rates, Pioneer would need to know if customer meters are capable of handling hourly and sub-hourly intervals in their service area (Advanced Metering Infrastructure). This information is not readily available and requires instituting a query through Calpine which Pioneer would have to pay for.
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The ability to react to price signals depends entirely on notice. It is fundamentally unfair to expect a ratepayer to react to price signals if they are unaware of them. That is why there must be sufficient technology to 1) provide notice to customers and 2) enable automation devises to react to said price signals.
i. Discussion - Residential
Pioneer would not be able to accurately determine total technological feasibility without incurring additional cost. Furthermore, to ensure that the initiative is a success, Pioneer would need to contract with a third party for the ability to text opt-in customers when they need to shift their load and would need to help ratepayers obtain a smart thermostat. Pioneer would also need to work with PG&E, and Calpine to create a way to access meter data in real time. In sum, Dynamic Pricing may be technologically feasible for residential customers, but Pioneer cannot make an accurate determination without incurring additional costs. ii. Discussion - Commercial/Industrial
Similarly, Pioneer cannot determine whether all Commercial/Industrial meters are capable of reading hourly and sub-hourly without incurring additional cost. Furthermore, Pioneer is not in a position to speculate on what technology upgrades for a Commercial/Industrial customer to be able to react and shift their energy consumption based on price signals. Also, as stated above, Pioneer would need to work with PG&E and Calpine to develop a way to access meter data in real time. In sum, Dynamic Pricing may be technically feasible for Commercial/Industrial customers, but Pioneer cannot make an accurate determination without incurring additional costs.
C. Benefits to the Grid
Pioneer will assess "Benefits to the Grid" on whether the proposed rate will reduce periods of high demand which constrain the grid.
An opt-in dynamic pricing rate may provide many benefits to the grid. CAISO energy prices are subject to supply and demand economic principles. Periods of high pricing are due to substantially greater demand than supply. A dynamic pricing rate would incentivize ratepayers to reduce their demand and there are supply constraints. Similarly, transmission costs are subject to supply and demand economic principles. To reduce demand for energy generation would also reduce demand for energy transmission. Finally, a dynamic pricing rate could reduce greenhouse gas emissions as times of high demand are when fossil fuels are generally used the most. i. Discussion - Residential
There are many theoretical benefits to the grid. If these benefits are realized, it would be in line with Pioneer's commitment to keep costs low for their ratepayers. However, these benefits are 12 Pl~~NEER
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purely speculative as there is no reliable data showing Dynamic Pricing has resulted in consistent reductions in peak demand.
ii. Discussion - Commercial/Industrial
The same logic also applies to Commercial/Industrial customers. The only reliable data point we have demonstrated a ten percent reduction during peak times. This is not enough data to draw a determination that Dynamic Pricing will provide consistent benefits to the grid.
D.Benefits to Customers
Pioneer will assess "Benefits to Customers" on whether the proposed rate will result in lower costs to Pioneer customers.
Dynamic Pricing provides an incentive for customers to shift their energy consumption to times when it cheaper. As mentioned above, this similarly impacts transmission prices. However, there are currently no available studies showing consistent energy savings when customers are on a Dynamic Pricing rate. Of the studies Pioneer reviewed, all were designed to show potential savings - not demonstrate actual savings.
i. Discussion - Residential & Commercial/Industrial
Any benefits to customers of either class are purely speculative. Pioneer has been unable to find any studies that show consistent energy consumption shifting due to Dynamic Pricing.
Furthermore, Pioneer has not found any studies demonstrating consistent savings to a ratepayer by utilizing a Dynamic Pricing rate.
E.Equity
Pioneer will assess "Equity" on whether the proposed rate will disproportionately burden certain populations.
Customers may see benefits on their bills. The ability to shift energy consumption to periods of lower costs would mean lower bills. However, as mentioned above, for the program to truly be successful it would require the ability of the ratepayer to receive notice and for them to have access to smart thermostat technology which can react to price signals. i. Discussion - Residential & Commercial/Industrial
The equitable benefits of a dynamic price rate are contingent on many factors. The evidence that these factors aligning will result in the desired behavior is so far not substantive. 13 Pl~~NEER
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As noted above, utility consumer advocates have noted that Dynamic Pricing is disproportionally burdensome on the poor. The poor are more likely to have less efficient appliances and would have to pay for text messages sent to them to receive notice of the price fluctuations. During heat wave events when air conditioning must be used for health reasons, the poor would be forced to choose between high rates or their own health. If a low-income customer mistakenly leaves an appliance on, the resulting bill could be catastrophic, having direct impacts on their budgetary considerations for food, health, and shelter30. In sum, the equitable benefits are hypothetical while the burden on the poor is concrete.
F. Conclusion - Rates
The LMS goals, articulate in § 1623 .1 (a)( 1) of the amended regulations, are to encourage the use of electricity at off-peak hours, encouraging the control of daily and seasonal peak loads to improve electric system efficiency and reliability, lessening, or delaying the need for new electrical capacity, and reducing fossil fuel consumption and greenhouse gas emissions. In weighing all the factors (Cost Effectiveness, Technological Feasibility, Benefits to the Grid, Benefits to Customers, and Equity), implementing a marginal cost-based rate would not be cost effective at achieving these goals. Studies show that at most thirty percent of residential ratepayers would utilize the program with the actual outcome in reducing demand being highly contingent on access to certain technologies. This outcome is also based solely on the reporting of one IOU. Furthermore, Pioneer has not seen any studies showing that Dynamic Pricing works in consistently shifting consumption. In contrast, Pioneer would need to invest significant money and staff time to ensure that the program is a success. Furthermore, Pioneer cannot ascertain the technological feasibility of instituting the rate without incurring additional cost. As noted above, a key issue with technological feasibility is that Pioneer does not have real time access to the meters in its service area. There may be benefits to the grid, but studies show that these benefits are not consistent. For customers, Dynamic Pricing could be beneficial, but it could equally be punitive and lead to inequitable results for lower income customers. For these reasons, Pioneer will not institute a marginal cost-based rate at this time. In the alternative, Pioneer will proceed with instituting the following load flexibility programs.
3. Load Flexibility Programs
As mentioned previously, Pioneer has a lean staff model. The Pioneer Programs Manager position was not filled until July 2023. Pioneer staff have developed the following roadmap for program implementation of programs the enable automated response to marginal cost signals.
These programs are analyzed under the same framework as Dynamic Pricing (Cost Effectiveness, Cost, Technological Feasibility, Benefits to the Grid, Benefits to Customers, and 30 Stephanie Kelly, Peter Szekely, Jennifer Hiller, Texas freeze raises concerns about 'ridiculous' variable rate bills, Reuter~ Fe. 22, 2021
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Equity). Effectiveness and Cost will be truncated. They will be broken down into the following categories and analyzed together:
• Programs that help customers obtain hardware that helps shift energy usage. • Programs that incentivize energy usage behaviors.
• Existing government programs not administered by Pioneer staff.
I. Hardware Programs
The following are programs that help customers obtain hardware that help customers shift their energy usage. The table has the name of the program, a brief description of the program, Pioneer staffs progress on the program, and the expected date of implementation:
Program Provider Program Description Progress Date of Implementation Participate Energy Pioner customers Pioneer Board Second Quarter of 2024 contract with approved program
Participate Energy for
leased home solar and
storage products. These
customers are
aggregated into a
virtual power plant. It
shifts energy usage by
charging the battery
when times are
cheapest ( compared to
self-generation) and
then uses power from
the battery at high-cost
hours.
Thule Energy Storage Pioneer customers Under Development Second Quarter of 2025 install Thule's
proprietary technology
in line with the air
conditioning system at
low upfront cost to the
customer. This
technology freezes
water into ice during
periods of low demand
and then thaws the ice
as part of the air
conditioning system
during periods of high
demand.
15 A. Cost Effectiveness
Pioneer will assess "Effectiveness" whether the program will consistently lead to the desired load shifting outcome. "Cost" will also be assessed based on the actual cost to Pioneer.
These are all programs that have demonstrated effectiveness in consistently shifting energy habits without incurring significant costs from Pioneer. Participate Energy's program to help customers install a battery on their home allows for customers to pull from their own reserve of power during high-cost times. Similarly, Thule Energy Storage would use periods of cheap grid energy to freeze ice, which in turn is used in conjunction with air conditioning to lessen the amount of energy needed by the air conditioning unit during periods of high energy cost. Pioneer believes that while none of these programs is a silver bullet in consistently reducing demand, when aggregated together they can provide consistent demand reduction. Furthermore, since these programs are done in partnership with a third party, Pioneer would not need to invest significant time and resources to get the programs running.
B. Technological Feasibility
Pioneer will assess "Technological Feasibility" based on whether the requisite technology is commercial and not experimental.
All listed programs in the section rely on proven technology. Participate Energy is partnered with Tesla to use Tesla's battery and photovoltaic technology. Thule Energy Storage's technology have logged more than 60 million operating hours at over 300 locations since 200531 . Thule Energy Storage has previously partnered with Southern California Edison for a successfully implemented load shifting program relying on their technology.
C. Benefits to the Grid
Pioneer will assess "Benefits to the Grid" on whether the proposed rate will reduce periods of high demand which constrain the grid.
The programs mentioned have a proven track record of providing benefits to the grid. Residential solar and storage helps reduce demand from the grid during high demand hours and residents can draw from their battery instead of the grid 3
2. Similarly, the Thule Ice Energy shifts energy use for air conditioning to low demand hours.
31 https://www.thuleenergystorage.com/projects/. last visited March 7, 2024. 32 Hou Sheng Zhou, A case study on the behavior of residential battery energy storage systems during network demand peaks, Renewable Energy, Dec. 2021.
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D. Benefits to Customers
Pioneer will assess "Benefits to Customers" on whether the proposed programs will result in lower costs to Pioneer customers.
These programs were specifically sought out due to their ability to help Pioneer customers. This program allows Pioneer customers to have solar and storage systems that normally would not be able to. As mentioned above, Participate Energy handles all maintenance and upkeep of the system and covers upfront installation costs. Thule Energy Storage would also be administered at low upfront cost to the customer.
E. Equity
Pioneer will assess "Equity" on whether the proposed program will disproportionately burden certain populations.
These programs are also structured to reduce upfront costs for customers which means that lower income individuals can take advantage of the program. This creates an equal opportunity for all populations to participate and realize the benefits of these load shifting programs.
F. Conclusion - Hardware Programs
The LMS goals, articulate in §1623.l(a)(l) of the amended regulations, are to encourage the use of electricity at off-peak hours, encouraging the control of daily and seasonal peak loads to improve electric system efficiency and reliability, lessening or delaying the need for new electrical capacity, and reducing fossil fuel consumption and greenhouse gas emissions. In weighing all the factors (Cost Effectiveness, Technological Feasibility, Benefits to the Grid, Benefits to Customers, and Equity), these programs will achieve the aims of the LMS regulations in a consistently effective manner without leading to inequitable results. They are cost effective as they rely on proven technologies and do not require substantial staff time to implement.
Similarly, they are technologically feasible as the technologies are commercially available and not experimental. Studies show they provide proven benefits to the grid. Customers are able to benefit as these programs are designed to be provided to customers with little or no upfront cost.
Finally, for the same rationale, these programs are equitable as lower income ratepayers can access the programs at little or no upfront cost.
II. Incentive Based Program Paired with Software
Pioneer believes that an incentive-based program would be more successful in consistently shifting energy usage than a punitive based one. With this in mind, Pioneer staff has been meeting with Sonoma Clean Power staff to implement a program similar to their GridSavvy program. This program offers customers that reduce their load during peak hours compensation 17 Plf~NEER
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that can be redeemed or donated to a participating nonprofit organization. An alert is sent to participating customers in advance of an anticipated peak load period. The compensation is based on kWh reduced during the event and there is no penalty if the customer decides to continue their usage as usual. This program is expected to launch by the second quarter of 2025.
In conjunction with this program, Pioneer is exploring leveraging software to automate smart appliances. As mentioned above, studies show that technology is required to consistently shift load for demand response. The software would also be combined with an EV charging optimization program.
The table has the name of the program, a brief description of the program, Pioneer staffs progress on the program, and the expected date of implementation:
Program Provider Program Description Progress Date of Implementation Pioneer would need to Incentivization based Under Development Second Quarter of 2025 issue an RFO for a program which pays
provider. Pioneer customers who
shift their energy usage
during peak demand
times.
Virtual Peaker Operates a Distributed Under Development Second Quarter of 2026 Energy Resource
Management System
(DERMS) platform.
This platform connects
with customers smart
devices to help shift
energy habits to low-cost hours.
Pioneer would need to EV Charging Under Development Fourth Quarter of 2024 issue an RFO for a Optimization.
provider.
A. Cost Effectiveness
Pioneer will assess "Effectiveness" whether the program will consistently lead to the desired load shifting outcome. "Cost" will also be assessed based on the actual cost to Pioneer.
Studies show that incentive-based approaches effectively reduce peak load during heatwave events without harm to vulnerable groups33 . Notably, in a study of incentive-based demand response in China, researchers found that the repeated and frequent implementation of the 33 Wang, Lu, Want, Qiu, Zhang, Li, Li, and Zhao, Incentive based emergency demand response effectively reduces peak load during heatwave without harm to vulnerable groups, Nature Communications, Oct. 2023 18 Plt,NEER
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program did not result in an attenuation of the effect34. This demonstrates that incentive-based demand response can lead to consistent results in shifting energy usage.
In order to gauge the complete financial cost and solicit competitive proposals, Pioneer would need to issue a Request for Offers. This process aims to assess the feasibility and pricing structures associated with implementing an incentive-based program to shift energy usage. At this current junction, in preliminary conversations with other CCAs with similar programs, costs are not presumed to be substantial.
B. Technological Feasibility
Pioneer will assess "Technological Feasibility" based on whether the requisite technology is commercial and not experimental or theoretical.
These programs have been shown to be technologically feasible in other CCA service areas35 .
These appliances and software have been on the market now for many years. If the program intends to make the periods of load shifting more granular (i.e sub-hourly) Pioneer would need to determine how many meters in our service area are AMI.
C. Benefits to the Grid
Pioneer will assess "Benefits to the Grid" on whether the proposed programs will reduce periods of high demand which constrain the grid.
These programs will help shift load during peak load hours which in tum reduces strain on the grid. As seen in the previously mentioned study, incentive-based programs result in consistent load reduction36. These load reductions, especially in periods of high demand, mean less price volatility and lowers the change of a brown out.
D. Benefits to Customers
Pioneer will assess "Benefits to Customers" on whether the proposed programs will result in lower costs to Pioneer customers.
This program will provide customers with the ability to either earn money from their shift in energy consumption or donate to a participating nonprofit. Rather than being punitive, these programs reward behavior with money that can go back into their account. Though this rebate program, Pioneer customers will realize lower costs.
34 Id.
35 https://sonomacleanpower.org/programs/gridsavvyrewards. last viewed March 7, 2024. 36 Wang, supra at note 34.
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E. Equity
Pioneer will assess "Equity" on whether the proposed program will disproportionately burden certain populations.
As mentioned above, studies show that these types of programs are more equitable than punitive based programs37. Rather than risk losing money, they can instead earn money by changing their habits. A customer will not have to worry about a large bill due to factors outside their control (say a medically necessary reason to keep an air conditioner running). Because of this model, no population can be disproportionately burdened with the costs of shifting energy usage.
F. Conclusion - Incentive Based Program Paired with Software The LMS goals, articulate in §1623.l(a)(l) of the amended regulations, are to encourage the use of electricity at off-peak hours, encouraging the control of daily and seasonal peak loads to improve electric system efficiency and reliability, lessening or delaying the need for new electrical capacity, and reducing fossil fuel consumption and greenhouse gas emissions. In weighing all the factors (Cost Effectiveness, Technological Feasibility, Benefits to the Grid, Benefits to Customers, and Equity), these programs will achieve the aims of the LMS regulations in a consistently effective manner without leading to inequitable results. They are cost effective as studies show incentive based cost shifting programs lead to consistent load shifting. The programs rely on commercially available technology which means they are technologically feasible. Studies show that these types of programs lead to consistent load shifting behavior which provides benefits to the grid. The programs are beneficial to customers as they are rewarded, rather than penalized for shifting their behavior. Finally, for the same reason, these programs are equitable as low-income individuals are able to avoid the risk of a catastrophic electricity bill.
III. Existing Government Programs
The table has the name of the government program, a brief description of the program, Pioneer staffs progress on the program, and the expected date of implementation:
Program Name Program Description Progress Date of Implementation AgFIT The Flexible Irrigation Pioneer must submit an The Second Quarter of Pilot Program for Advice Letter stating 2025
Agriculture (AgFIT) their intent to
was successfully participate by March
piloted by Valley Clean 2025
Energy. The D.24-01-
032 ruling expanded
the program to all
agricultural customers
37 Id.
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and allows all CCAs in
PG&E service territory
to participate until its
conclusion on
December 31, 2027.
This program would be
administered by PG&E
and would use
automation technology
and/or a notice to shift
agriculture pumping
times.
ELRP A program Currently ongoing Set to expire December administered by the 31,2025
IOUs which pays
customers who
voluntarily reduce
electricity demand
during a grid
emergency. The
program also pays
customers who produce
energy during a grid
emergency under
certain conditions.
A. Cost Effectiveness
Pioneer will assess "Effectiveness" whether these programs consistently lead to the desired load shifting outcome. "Cost" will also be assessed based on the actual cost to Pioneer.
These programs have been proven to be effective at shifting energy consumption to off-peak hours for irrigation. It is due to their effectiveness that CPUC expanded these programs38 . Since these programs are administered by the IOUs, they would be administered at no cost to Pioneer.
B. Technological Feasibility
Pioneer will assess "Technological Feasibility" based on whether the requisite technology is commercial and not experimental or theoretical.
Since these are programs that have already been piloted or are currently running, they have proven technological feasibility. Any requisite technology is commercially available. 38 Staff Proposal on Existing Dynamic Rate Pilot Expansion, R.22-07-005, Aug. 15, 2023. 21 Plf)NEER
COMMUNITY ENERGY
C. Benefits to the Grid
Pioneer will assess "Benefits to the Grid" on whether the proposed programs will reduce periods of high demand which constrain the grid.
The AgFIT program shifts load to times of low demand which reduces strain on the grid. The ELRP is a more traditional demand response program but is incentive based rather than punitive.
Both are designed to reduce demand from the grid which helps stabilize prices and reduce the risk of brown out.
D. Benefits to Customers
Pioneer will assess "Benefits to Customers" on whether the proposed programs will result in lower costs to Pioneer customers.
Both of these programs provide benefits to customers as they reduce demand during peak periods. Reductions like help stabilize costs which in tum helps keep Pioneer rates low.
Furthermore, Pioneer customers that are part of the ELRP program are compensated for the reductions in energy usage, which in tum means they realize lower energy costs.
E. Equity
Pioneer will assess "Equity" on whether the proposed program will disproportionately burden certain populations.
Both of these programs are opt-in incentive based rather than punitive, fostering a more balance and fair outcome. This approach not only encourages compliance but also promotes a positive and cooperative relationship between customers and the LSE, leading to outcomes seen as fairer and more equitable. As mentioned previously, incentive-based programs lead to more equitable outcomes39.
F. Conclusion - Existing Government Programs
The LMS goals, articulate in §1623.l(a)(l) of the amended regulations, are to encourage the use of electricity at off-peak hours, encouraging the control of daily and seasonal peak loads to improve electric system efficiency and reliability, lessening or delaying the need for new electrical capacity, and reducing fossil fuel consumption and greenhouse gas emissions. In weighing all the factors (Cost Effectiveness, Technological Feasibility, Benefits to the Grid, Benefits to Customers, and Equity), these programs will achieve the aims of the LMS regulations in a consistently effective manner without leading to. inequitable results. These programs are cost effective as the CPUC has found them to be effective at consistently shifting load. They are also not administered by Pioneer, so cost is negligible. As they are existing programs, they are shown to be technologically feasible. The programs provide proven benefits to the grid by shifting load 39 Wang, supra at note 34.
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times away from peak periods. Since these are incentive based, they provide benefits to customers as they see a gain from shifting behavior rather than a penalty. Finally, for a similar rationale, they are incentive based so the programs do not lead to inequitable outcomes.
4.Summary
The amended LMS regulations require Pioneer to assess implementing a marginal cost-based rate, and if that implementation would result in the goals of the regulation. These goals are to encourage the use of electricity at off-peak hours, encouraging the control of daily and seasonal peak loads to improve electric system efficiency and reliability, lessening, or delaying the need for new electrical capacity, and reducing fossil fuel consumption and greenhouse gas emissions.
In assessing the if the implementation will achieve these goals, Pioneer must weigh cost effectiveness, technological feasibility, benefits to the grid, benefits to customers, and equity. If, after weighing these factors, Pioneer chooses not to implement a marginal cost-based rate, Pioneer must instead provide load shifting programs designed to achieve the previously state goals.
Pioneer assessed the implementation of a marginal cost-based rate and found that the rate scheme is not cost effective in achieving the stated goals of the regulation. There is not substantive enough evidence that a marginal cost-based rate would lead to consistent energy shifting behavior for the large cost that would be incurred by Pioneer. Currently, Pioneer does not have access to real time meter data which is required for the implementation of a rate like this.
Accessing that data would require significant costs and staff time for Pioneer. The rate also may be punitive and lead to inequitable outcomes for lower income customers. With that in mind, Pioneer has developed the following list of programs which will achieve the goals of the regulation:
Program Provider Program Description Progress Date of Implementation Participate Energy Pioner customers Pioneer Board Second Quarter of 2024 contract with approved program
Participate Energy for
leased home solar and
storage products. These
customers are
aggregated into a
virtual power plant. It
shifts energy usage by
charging the battery
when times are
cheapest ( compared to
self-generation) and
then uses power from
the battery at high-cost
hours.
Thule Energy Storage Pioneer customers Under Development Second Quarter of 2025 install Thule's
proprietary technology
23 Plt,NEER
COMMUNITY ENERGY
in line with the air
conditioning system at
low upfront cost to the
customer. This
technology freezes
water into ice during
periods of low demand
and then thaws the ice
as part of the air
conditioning system
during periods of high
demand.
Pioneer would need to Incentivization based Under Development Second Quarter of 2025 issue an RFO for a program which pays
provider. Pioneer customers who
shift their energy usage
during peak demand
times.
Virtual Peaker Operates a Distributed Under Development Second Quarter of 2026 Energy Resource
Management System
(DERMS) platform.
This platform connects
with customers smart
devices to help shift
energy habits to low-cost hours.
Pioneer would need to EV Charging Under Development Fourth Quarter of 2024 issue an RFO for a Optimization.
provider.
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Staff Report - Item 4
To: The Governing Board
From : Paige Garcia, Programs Manager
Item 4 : Approval Authorizing the Executive Director to Launch a Heating Ventilation Air-Conditioning Tune-Up Program Date: 3/21/2024
RECOMMENDATION
Approve to authorize the Executive Director to launch a Heating Ventilation Air-Conditioning ("HVAC") Tune-Up Program that enables Pioneer Community Energy's ("Pioneer") to offer rebates to residential customers who receive a HVAC tune-up.
COMMUNITY ADVISORY COMMITTEE RECOMMENDATION
At the February 28, 2024 Community Advisory Committee meeting, the HVAC tune-up program was reviewed and discussed by the Committee resulting in a recommendation to present to the Board for adoption.
BACKGROUND
At the May 25, 2023, Governing Board Meeting, the Board reviewed the Proposed Fiscal Year 2023-24 Operating Budget and provided directions to focus on Programs that serve the residential sector.
ANALYSIS & DISCUSSION
Energy efficiency programs that help ratepayers save money while supporting grid stability is a priority for Pioneer Board. HVAC maintenance is an option for ratepayers to prepare their homes for the high energy usage summer months. A properly maintained HVAC system is more efficient, allowing customers to use less electricity, saving them money on their electricity bills.
Pioneer's neighboring municipal utility, Roseville Electric, has had a successful HVAC tune-up program for the past five years. As one of their most successful programs, the HVAC tune-up program provides a benefit to customers and supports local businesses by bringing in thousands of applications and many engaged contractors each year.
Pioneer's HVAC tune -up program would include a rebate of $75 per customer address. To receive the rebate, t he participant must be a Pioneer customer, must live in a single-family dwelling, and complete and submit the program application and supporting documentations to Pioneer within 90 days of service. The program will run from April ist through to October 31st .
STRATEGIC PLAN
The recommendation supports the Local Engagement and Quality in Service priorities.
FISCAL IMPACT
The Board previously approve a $2 million budget for programs. Program budget allocation would be capped at $500,000 with staff coming back to the Board for an increased budget if needed.
ATTACHMENTS
1. Overview of the Program.
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COMMUNITY ENERGY
Pioneer's HVAC Tune Up Program Plan
Program Summary
The HVAC tune-up program is a rebate program for Pioneer customers who receive a tune-up on their air conditioning unit between the months of April through October. A customer can find/use their preferred licensed contractor for the tune-up, then submit an application with supporting documentation and receive an $75 rebate for the service from Pioneer.
Requirements
• Must be a Pioneer Customer.
• Must be a single-family residential dwelling.
• HVAC Tune-Up program is a seasonal program valid only April 1st through October 1st. • One HVAC Tune-Up rebate per address every 12 months.
• Recommended services include ACCA Standard 4 endorsed set of inspection tasks for HVAC maintenance.
• Applications will be accepted on a first come, first served basis, until program funds are depleted.
• Applications must be postmarked no later than 90 days from tune-up date. • Required Documents
o Paid-in-full invoice(s) including receipts and any other supporting documentation readily available in a PDF, JPEG or Microsoft Word document format. o Tune Up Verification and Rebate Application (Contractor/Technician signature is required)
Program Process
1. Contractor finds customer OR Customer finds contractor.
2. Contractor completes work.
3. Customer pays contractor.
4. Customer submits program application and supporting documentation.
5. Pioneer reviews application and invoice documents.
6. Pioneer submits rebate for payment.
7. Customer receives check within 4-8 weeks from submission.
Program Budget
The program budget includes an incentive amount of $75 per customer, with an estimated participation of about 4,000-6,000 customers. The program budget also includes an allocation for marketing such as paid ads, e-blasts, targeted mailers, webpage development and additional marketing materials, as needed.
2510 Warren Drive, Suite B, Rocklin, CA 95677 (916) 758-8969 PioneerCommunityEnergy.org Plf)NEER
COMMUNITY ENERGY
Staff Report - Item 5
To: The Governing Board
From: Paige Garcia, Programs Manager
Ilern 5: Programs Progress Report
Date: 3/21/2024
RECOMMENDATION
Receive a progress report on Board approved Programs and other related activity.
BACKGROUND
The Board provided directions on future programs at the June 15, 2023, meeting. With a focus on the residential sector and with input from the Community Advisory Committee, Pioneer staff began reviewing potential program designs and program partnerships.
At the July 20, 2023, meeting, the Board approved the contract between Electrum and Pioneer to create an online solar and renewable energy marketplace. The contract was finalized November 20, 2023.
At the September 28, 2023, Board meeting, the Board approved the contract with Greenlite to partner with Pioneer to implement a discounted LED program with local hardware stores. The contract was finalized October 16, 2023.
At the February 15, 2024, Board meeting, the Board approved the contract between Participate.Energy and Pioneer to implement a solar-plus-storage program.
ANALYSIS & DISCUSSION
Greenlite Program
The Greenlite program launched at the end of January 2024. There are currently 14 stores enrolled in the program with orders to carry Pioneer-branded discounted LED products and display point-of-sale information.
Greenlite is continuing to recruit additional retailers in Pioneer service territory and working with existing retailers to place orders. Pioneer has a page on the website dedicated to the program which provides customers with a list of participating stores so they know where they can go to take advantage of the discounted products.
The program is being promoted through digital aqvertising and social media posts as well as flyers at community events that Pioneer is attending. The current stores participating are shown in the table on the following page:
Agenda Item: 5 Agenda Date: 3/21/2024
Store Name Address City
Do It Best 0118 Hills Flat Lumber
Habitat For Humanity Restore
Habitat for Humanity Restore
Sweet Life Thrift
True Value Hardware
Mt St Mary's Thrift Store
Swasey's Hardware & Hobbies
True Value Hardware
Ace Hardware Corp. 02/2013
Hospice Gift & Thrift Of Grass Valley
True Value Hardware
Goodwill
Goodwill
True Value Hardware
Electrum
1000 S Canyon Way
6168 Pleasant Valley Rd
12359 Loma Rica Drive
144 Hughes Rd Ste E
4S71 Missouri Flnt Rrl
410 S Church St
140 E McKnight Way# 11-14
6416 Pony Express Tri
10868 Combie Road
840 E Main St
4702 Marshall Rd
1145 Sutton Way
2460 Grass Valley Hwy
441 Main St
Colfax
El Dorado
Grass Valley
Grass Valley
Pln,Nvi IIP
Grass Valley
Grass Valley
Pollock Pines
Auburn
Grass Valley
Garden Valley
Grass Valley
Auburn
Placerville
Since the approval of the Electrum contract in November, Pioneer has been working with the Electrum staff to develop specific program elements and prepare both the Pioneer and Electrum websites for program launch.
Marketing materials are being created to support the program. The Electrum and Pioneer webpages are now finalized, and the program will be officially launched Friday, March 22, 2024. Pioneer will be promoting the program through marketing emails and direct mail to contractors, encouraging them to become verified vendors, as well as advertising the program to residents through social media, paid advertising, and newsletters.
Participate. Energy
The Participate.Energy program was approved by the Board at the February Board Meeting. Pioneer staff is working closely with Participate.Energy to prepare for launch, as well as with Calpine to address all billing requirements. The estimated launch date of this program is June 1, 2024. The program will be promoted through marketing emails, direct mailers, and online advertising.
Electric Vehicle Charging Stations
Pioneer participated in a Feasibility Study for the Placer County Transportation Planning Agency to review potential sites for truck alternative fueling. All suggested sites were in Roseville Electric territory, but Pioneer found it beneficial to support another local agency and be a part of the discussion about where the main site would be located. With the addition of a large alternative fueling station in Roseville, Pioneer is planning for future partnerships with PCTPA to support charging along I-80.
Community Advisory Committee
Staff meets bi-monthly with the Community Advisory Committee to discuss and evaluate program initiatives.
STRATEGIC PLAN
The recommendation supports local engagement and quality in service priorities.
FISCAL IMPACT
There is no fiscal impact with this report.
ATTACHMENTS
There is no attachment to this report.
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COMMUNITY ENERGY
Staff Report - Item 6
To: The Governing Board
From: Donald Eckert, Executive Director
Item 6: State of the Utility
Date : 3/21/2024
RECOMMENDATION
Receive a report on the State of Pioneer Community Energy ("Pioneer").
BACKGROUND
The state of the utility report is an annual report presented to the Governing Board ("Board") during the first quarter of the calendar year. The purpose of the report is to provide a status of the current state of Pioneer and expectations for 2024.
ANALYSIS & DISCUSSION
Pioneer enters 2024 in financially stable condition and in a strong position to continue to deliver value to our ratepayers.
Affordability
The Board set rates that supports double digit discounts compared to Pacific Gas & Electric's ("PG&E") generation rate for 2024 projected to create $41 million of savings with dollars that stay in the community while maintaining the financial health of Pioneer by contributing to reserves. The following are discounts based on Power Charge Indifference Adjustment ("PCIA") vintages:
• 2017 PCIA Vintage (Placer County): 10%
• 2021 PCIA Vintage (El Dorado County): 19%
• 2023 PCIA Vintage (Nevada City and Grass Valley): 12% Expansion
The outreach work in 2023 resulted in a successful launch into Nevada City and Grass Valley this year with a 98% participation rate.
Staff anticipates a busy expansion year with discussions restarting with Nevada County and new relationships developing with Sutter County, Tuolumne County, Plumas County and Fresno County. Staff will also explore opportunities with incorporated cities in those counties such as Yuba City, City of Live Oak, and City of Sonora .
Finance
Pioneer achieved an A- credit rating with a long-term outlook of stable from S&P Global. The credit rating will provide more options in power supply that results in lower power supply costs while exhibiting stability to our community.
Staff just closed on an increase to our line of credit that preserves our cash and Pioneer continues to make progress towards its cash reserve targets supporting rate stability and long-term sustainability.
Human Resources
Pioneer's employees are its greatest asset and the dual goals of attracting and retaining talent can never lose focus. Management will conduct an employee survey this spring to calibrate health and welfare offerings to
Agenda Item: 6 Agenda Date: 3/21/2024
maintain Pioneer's competitiveness. The results of the survey will be part of the new budget development. We will continue to make Pioneer a great place to work.
Power Supply
Power Supply comprises 92% of the operating budget and the staff's expertise in managing power supply supports rate savings and grid reliability. Staff will maintain focus on finding least cost-best fit solutions to Pioneer's power supply needs while staying compliant with Pioneer's energy risk management policy and the various regulations from thP- C:rllifornio Puhlic l ltilitiec; r.ommic;c;ion, r.olifornio Fneray Commission, and the California Independent System Operator.
A focus beyond the day-to-day operations is investment in long-term power purchase agreements in biomass projects that create good paying local jobs and benefit the community through reduced wildfire risk. With Pioneer's approval to be part of the BioMAT program by late Spring and the Feed-In Tariff approved by the Board in late 2023, staff are in a strong position to begin to explore opportunities.
Staff will be implementing a board approved software optimization product that couples with a long-term power purchase agreement for a solar+ storage online in 2024.
The power supply market is still in a state of price volatility with regards to renewable energy and resource adequacy. Staff were successful in navigating these markets last year and will continue to demonstrate their expertise this year.
Programs
2024 is shaping to be a very productive year with efforts in Programs. Pioneer began the year with Board approved programs with Greenlite and Electrum and early this year, Participate.Energy.
The Electrum program will be a guidance resource to ratepayers considering purchasing an energy efficiency system and protect them from the many bad actors in the industry. The expected launch is in March.
The Greenlite program launched in January and has been very successful. This is a subsidized LED lighting program that is currently in fourteen stores in the territory and growing. The response has been strong and with expansion of the program into Dollar Tree stores, we expect to burn through inventory well ahead of schedule.
Participate.Energy program is expected to launch in June. This is expected to be well received as it provides stability in both rates and reliability.
Staff will also be launching a Heating Ventilation Air-Conditioning Tune-Up program resulting in more efficient homes that helps reduce utility bills.
Staff will continue to collaborate with the Community Advisory Committee in evaluating programs and presenting recommendations to the Board.
Legislative & Regulatory Affairs
Pioneer focused on successful delivery of a biomass procurement product to assist our members with SB1383 compliance in 2023. The focus in 2024 will be concluding the regulatory process of implementing AB843 that allows Pioneer to participate in the BioMAT program and promote biomass projects with minimal impact to our rates. Pioneer expects to conclude the process by late Spring.
Staff will continue to build relationships with legislators in our territory. Staff participated in CalCCA Lobby Day in February that included discussions with Assemblymember Jim Patterson and Senator Brian Dahle. Staff collaborated with CalForest to support a tour of SPI's biomass facility in Lincoln early this year to educate legislators on biomass and build support.
Agenda Item: 6 Agenda Date: 3/21/2024
Staff will present its legislative platform for this year to the Board in April and conduct a Pioneer "Lobby Day" with Board Members and Legislators this Spring.
Staff will continue to collaborate with other Community Choice Aggregators ("CCAs") in support of increased oversight on PG&E's Fast Trips that are short in duration but frequent and without notice power outage events that disproportionately impacts our territory especially in El Dorado County.
Stc:iff will h~ mllc=ihornting with othN organirntions such as RCRC and the Bioenergy Association of California to extend the sunset date of the BioMAT program for at least until five years past 2025.
Outreach and Marketing
Pioneer will continue to devote resources to build upon brand awareness in 2023 with continued marketing campaigns in 2024. Efforts will continue in improving the customer experience on the website and through Chatbot.
With a Sponsorship Policy approved by the Board in Fall 2023, staff will utilize opportunities to build relationships with key community stakeholders. Pioneer is committed to maintaining visibility with a presence in community events such as County Fairs and Chamber events. Staff will build upon its reputation of providing excellent customer service.
Solar Billing Tariff (otherwise known as NEM 3.0) will launch in PG&E's billing system in mid-April. Staff will be active with messaging and education on how this will impact our customers. It is expected 1,800 customers are impacted out the gate with numbers only growing as new housing and other installations will fall under this tariff.
STRATEGIC PLAN
The report supports all the priorities of the strategic plan.
FISCAL IMPACT
There is no fiscal impact with this report.
ATTACHMENTS
There are no attachments to this report.
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Staff Report - Item IV-B
To: The Governing Board
From: Donald Eckert, Executive Director
Item IV-B: Executive Director Report
Date: 3/21/2024
PERSONNEL
The following are active recruitments:
• Sr. Manager of Quantitative Analysis and Modeling
• Customer Care Coordinator
• Legislative & Regulatory Analyst
• Communications Coordinator (contingent on approval from the Board) EXECUITVE DIRECTOR AGREEMENTS EXECUTED {NON-POWER SUPPLY} The following agreements have been executed by the Executive Director, consistent with the authority delegated by the Board:
• Karpel Associates, Executive Search Recruiter focused on the Sr. Manager of Quantitative and Modeling position, effective February 22nd until recruitment closes, not-to-exceed $15,000. • Amendment # 1 with Law Offices of David Peffer to extend term to end of the year, provides representation on Fast-Trips (frequent but short-duration power outage events) that has had a significant impact in the El Dorado County area.
• Amendment #2 with the Law Offices of David Peffer, regulatory and legislative legal services, Effective to the end of the year, not-to-exceed $14,000.
• Accion Group, LLC, website and portal development in support of the Bioenergy Market Adjustment Tariff (BioMAT) program, not-to-exceed $52,000 for the first year and not-to-exceed $12,500 in subsequent years. Of note, Pioneer's share of the cost is¼ or $13,000 in the first year. • Collection Bureau of America, Collection Services, Effective March 6, 2024 until completion, 25% of the principle amount collected prior to legal action filed, 35% of the principle amount collected after legal action is filed. The scope excludes residential and only large unpaid balances from Commercial accounts.
CALCCA LOBBY DAY
CalCCA, our trade association, hosted a "Lobby Day" event in Sacramento on February 21st . Over seventy CCA staff and elected officials attended fifty-seven meetings with legislators to discuss energy issues and help shape the future of California's electric grid. Don Eckert and Sam Kang represented Pioneer.
Agenda Item: IV-B Agenda Date: 3/21/2024
Staff look forward to working with our Pioneer Board Chair on developing a Pioneer Lobby Day to meet with legislatures from our service territory. Details to follow.
BIOMASS PLANT TOUR
Pioneer partnered CalForests, Sierra Pacific Industries (SPI), Placer County Air Quality Control District, and California Biomass Energy Alliance to host a legislative tour at the SPI's Lincoln facilities on February 14th . This educational tour provided lawmakers a chance to see firsthand how the site's sawmill, co-gen control room, log yard, and bark plants work synergistically to create biomass. Pioneer Chief Operating Officer Sam Kang participated in an hour-long roundtable discussion following the tour to provide additional information about the benefits of biomass and to dispel myths and misinformation.
The tour was attended by seven legislators: Senator Kelly Seyarto, Assemblymember Juan Alanis, Assemblymember Laurie Davies, Assemblymember Diane Dixen, Assemblymember Joe Patterson, Assemblymember Gail Pellerin, Assemblymember Tri Ta. Response to the event was overwhelmingly favorable.
Later this year, staff will work with the plant to host a tour for the Pioneer Board.
Agenda Item: IV-B Agenda Date: 3/21/2024
APRIL BOARD MEETING
A reminder that the April Board meeting will be on the 4th Thursday instead of the usual 3rd Thursday of the month. This is to accommodate staff to attend the CalCCA annual conference. If any Board Members are interested in attending, please let the Board Clerk know by end of March.
NEM 3.0 UPDATE
Solar Billing Plan (SBP - often referred to as NEM 3.0) will launch on April 15th in Pacific Gas & Electric's billing system. An anticipated 1,800 Pioneer customers will be affected by this policy change. Pioneer is working closely with PG&E to ensure consistent messaging and plans to run a public education campaign to assist customers and minimize "surprises." Messaging will provide customers with the "5 Things Customers Need to Know" about SBP and will be shared via direct mail, paid digital, and social media. Coordinating all timelines and implementation details with PG&E and Calpine continues on a weekly basis.
COMMUNITY ADVISORY COMMITTEE {"CAC")
The CAC convened on February 28th . The agenda included a discussion on the Income Graduated Fixed Charge issue and the HVAC program that is being brought to the Board for approval. The CAC will meet again in April.
EXECUTIVE DIRECTOR POWER SUPPLY CONTRACTS EXECUTIED
There is no activity to report this month.
Presentations and Relevant Meetings attended by the Executive Director
1. Participated in CalCCA Weekly/Monthly Board meetings.
2. Participated in discussions with leadership from Rural Counties Representatives of California regarding partnership potential.
3. Presented at the League of Cities quarterly meeting in Loomis.
ATTACHMENTS
1. Agenda Planning Document
2. Legislative and Regulatory Report
3. Marketing/Outreach Report
Agenda Planning Document - Pioneer Community Energy Updated 3-14-2024 MARCH 21, 2024 APRIL 25, 2024 MAY 16, 2024 3:00 PM
BOARD OF 3:00 PM FRIDAYI APRIL 12 3:00 PM IN THE FUTURE DIRECTORS (Post Agenda: March 15) All items due & approved prior to (Post Agenda: May 10) CalCCA conference week
[posting no later than April 19]
General Function I
Agenda Review Agenda Review Agenda Review
Consent Minutes for Approval Minutes for Approval Minutes for Approval 1a NOVEMBER 16, 2023 MARCH 21, 2024 APRIL 25, 2024
JANUARY 18, 2024
FEBRUARY 15, 2024
1b Receive Draft Financials: JAN 2024 Receive Draft Financials: FEB 2024 Receive Draft Financials: MAR 2024 (Koehn) (Koehn) (Koehn)
1c RES Amendment No. 3 to ED Joint-Rate Mailer
Employment Agreement (action- Power Content Label
Eckert)
1d RES approving job description JSR contract
(Marketing & Communications)
(Koehn)
Regular Strategic Plan (discussion-Eckert) RES recognizing Board Members for RES Strategic Plan (action-Eckert) WPWMA Biomass Plant update (action-2 Kim Tucker their dedicated service to Pioneer Kim Tucker Kang) Community Energy - Andreatta, Cortez
(action-Eckert)
3 RES LMS - Programs update (action- Leg Reg Platform (action-Kang) FY 2024-25 Operating Budget (JUNE) RES FY 2024-25 Operating Budget Kang/Stassi-Vanacore) (discussion-Koehn) (action-Koehn) 4 RES HVAC Program (action - Stassi- RES Grid Savvy program (action- Stassi- Update on Prepay Transaction Vanacore) Vanacore) (discussion-Eckert)
5 Electrum /Participate.Energy/ Strategic Plan (discussion-Eckert) IT Annual Audit (discussion-Koehn) Greenlite / 1-80 programs update & Kim Tucl<er
demo (discussion - Stassi-Vanacore)
6 State of the Utility (discussion-Eckert) Participate.Energy/ Pioneer Economic Review (action- Stassi-Vanacore)
7 8
General Function II Executive Director's Report Executive Director's Report Executive Director's Report Executive Director Report-QTRLY Updates IV-8 REG Reports: Leg/Reg; Programs; REG Reports: Leg/Reg; Programs; REG Reports: Leg/Reg; Programs; requested by the Board Community Engagement; Community Engagement; Community Engagement; JAN - APR -JULY-OCT QTR updates: Strategic Plan Objectives; ■ Strategic Plan Objectives Sponsorship Activity; Income Graduated ■ Sponsorship Activity Fixed Charge; ■ Income Graduated Fixed Charge
IV-C Informational Items Informational Items Informational Items Glossary of Terms Glossary of Terms Glossary of Terms
C: Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates Agenda Planning Document - Pioneer Community Energy Updated 3-14-2024 AUDIT/FINANCE COMMITTEE MAY - PRIOR TO 5/16 BOARD IN THE FUTURE in-person & remote locations Greg Janda, Chair FY 2024-25 Operational Budget
John Hidahl, Vice Chair IT Audit
Gary Petersen
David Ring
ENERGY PROCUREMENT REVIEW LATE APRIUEARLY MAY-TBD IN THE FUTURE AD HOC COMMITTEE zoom only John Hidahl, Chair Select Officers for 2024
Greg Janda, Vice Chair BioMAT
Alice Dowdin Calvillo TerraGEN Gary Petersen
Shell
EXPANSION LA TE APRIL - TO BE SCHEDULED IN THE FUTURE AD HOC COMMITTEE zoom only Jim Holmes, Chair Select Officers for 2024
Alice Dowdin Calvillo, Vice Chair Evaluation of Expansion Opportunities David Yarbrough COMMUNITY ADVISORY COMMITTEE APRIL 24, 2024 IN THE FUTURE TO THE EXECUTIVE DIRECTOR Meets on the 4th Wednesday JUNE 26
(even-numbered months) AUGUST 28
OCTOBER 23
DECEMBER 11
(FEBRUARY 26)
C: Pioneer Community Energy\Executive Director - General Documents\Board\Board Meeting Templates
Attachment 2: Legislative and Regulatory Update
Date: 3/21/2024
Legislative Affairs
• February 13, 2024, there was a Senate Energy, Utilities, and Communications Committee hearing regarding the CPUC and Public Advocates Office Annual Update to the Legislature: Keeping the Focus on Utility Bill Affordability.
• February 14, 2024, Pioneer hosted a Biomass Tour (along with Calforests and California Bioenergy Association) with 8 Legislators. Assembly Member Joe Patterson, Assembly Member Gail Pellerin, Assembly Member Laurie Davies, Assembly Member Tri Ta, Assembly Member Juan Alanis, Assembly Member Marie Waldron, and Senator Kelly Seyarto attended a tour at Sierra Pacific Industries mill and biomass facility in Lincoln.
• Friday, February 16th was the last day to introduce bills. There were 2,124 bills introduced (1,505 Assembly Bills and 619 Senate Bills). Bills that were introduced in January and February are being reviewed for their impact on Pioneer Community Energy. There are still many “spot bills” out there and staff are waiting for these bills are amended.
• Wednesday, February 21st CalCCA held a CalCCA Lobby Day. CalCCA set up meetings with Legislative Leaders and Administration officials. Both Don Eckert and Sam Kang attended. • The Assembly Utilities and Energy Committee had a hearing on March 6 on Affordability Concerns in the Electric Sector: Current Cost Drivers and Implications of Future Trends. Speakers included:
o Alice Reynold, President of the CPUC
o Linda Serizawa, Deputy Director Public Advocates Office o Grant Parks, California State Auditor
o Adam Pierce, Vice President, Energy Procurement and Rates, SDG&E o Michael Wara, Professor Stanford and Director of Climate and Energy Policy Program o Matthew Friedman, Staff Attorney for The Utility Reform Network o Stephanie Doyle, California State Affairs Director with the Solar Energy Industries Association • March 14, 2024, is CCA 101, put on by CalCCA. Intended for legislative staff in the Capitol to better understand CCAs.
• Primary elections in the State Legislature-o AD 1- Heather Hadwick (R) 36.6% vs. Tenessa Audette (R) 29.5% o AD 5- Incumbent Joe Patterson (R) 57.7% vs. Neva Parker (D) 29.8% o SD 1- Megan Dahle (R) 77.6% vs. David Fennell (R) 22.4% • March 18, 2024, Governor Newsom will give the State-of-the State address at 12:45pm. Expect the Governor to address the budget shortfall which in January the Governor indicated was a $38 billion deficit and by mid-February the LAO’s office placed at $73 billion deficit based upon the latest personal income tax returns.
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
Attachment: 2 Agenda Date: 3/21/2024
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;
2023 ERRA Compliance
Application; 2023 ERRA
Forecast Application; 2024
ERRA Forecast Application
Reduce the ERRA impact on the
PCIA; increase data
transparency from the IOUs
R.20-08-020 Rulemaking to develop a
successor to existing Net
Energy Metering (NEM) tariffs
and to review and refine
existing NEM tariffs
Mitigate impacts to Pioneer 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.
• November 28, 2023- CPUC issued a revised Proposed Decision. • November 30, 2023- CPUC voted to approve the revised Proposed Decision, which clarified many of the issues raised in the comments of the PD, while retaining the favorable outcome for CCAs. • January 2, 2024- the IOUs submitted their Tier 2 ALs modifying the BioMAT Tariff to incorporate CCAs. • January 29, 2024- 60 days from the Decision- CCAs finalized two provisions with Accion for website work Attachment: 2 Agenda Date: 3/21/2024
and third-party administrator. In addition, CCAs submitted a revised tariff, a program participation request, power purchase agreement, rate schedule, and balancing statement as part of a Tier II AL to the CPUC. • February 1, 2024, Tier III ALs were submitted by 4 CCAs indicating interest in participating in the BioMAT program (3CE, Pioneer, RCEA, and OCPA).
• March 1, 2024, A group of CCAs (Pioneer, RCEA, 3CE, OCPA, MCE, and VCE) submitted comments in the RPS proceeding asking the CPUC to consider expediting consideration of an extension to the BioMAT program beyond 2025.
• March 4, 2024 Assembly Member Aguiar-Curry drafted a letter of support for the extension of the BioMAT program. Letter is being circulated to add other Legislators as signatories. • March 5, 2024, there is an agreement with Accion as the Third-Party Administrator. The agreement has been reviewed and signed by Pioneer as well as the other 3 CCAs.
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. • 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. • October 27, 2023- 22 Democratic lawmakers sent a letter to the CPUC asking for an extension of the timeline for the proceeding and require public participation hearings before implementing an 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 15, 2023- Track B (demand flexibility)- The CPUC issued a PD which directs PG&E to expand the Valley Clean Energy Ag-Fit pilot program. CCAs that participate in the expanded pilot may receive $20/kW for each year of customer enrollment in the PGE Ag-Fit pilot as an incentive. The incentive is capped at $1.8 million for PG&E’s territory. The budgets are for all the CCAs wanting to participate to share. PG&E will be administering the pilot so there will be no administrative costs, but several of the CCAs want to have a say in how the pilot is administered and the education and outreach of the pilot. December 18, 2023- Track A (IGFC)- CPUC issued a ruling requesting implementation information from the IOUs on the IGFC. The ruling directs the IOUs to file additional information about the proposed budgets for implementing the first income-graduated fixed charges by January 24, 2024. • January 23, 2024-(Track B) There was a revised PD on the expanded pilots. Pioneer is considering offering the expanded Ag-Fit program to its customers. The pilot will be administered by PG&E so it will involve minimal work on behalf of Pioneer staff, but it will also bolster our Load Management Standards program and keep us competitive with PG&E.
• January 25, 2024- The CPUC approved the expanded pilots revised decision. • January 30, 2024- (Track A)- There was a press conference held by a group of 20 Democratic Legislators calling for the repeal of income-graduated fixed charge. AB 1999 would repeal the income-graduated fixed charge approved under AB 205 (2022) and replace it with a $5 fixed charge for CARE customers and a $10 fixed charge for all other residential customers.
• February 13, 2024 Pioneer staff sent PG&E an email indicating interest in possibly participating in the expanded pilot expansion program, particularly the Ag Pilot.
Attachment: 2 Agenda Date: 3/21/2024
• February 13, 2024 at the Senate Utilities, Energy and Communications hearing the IGFC was brought up by CPUC president, Alice Reynolds, who indicated the CPUC was working on an IGFC decision possibly by the end of Q1.
March 1, 2024 there is an expanded pilot workshop to address dual participation, since some demand flexibility programs are dual enrollment prohibited. Dual Participation is allowed for- Critical Peak Pricing:
(Peak Day Pricing and SmartRate), Electrification Rates: (E-ELEC), TOU Rates (E-TOU, E-TOU-D), Simple NEM and NBT, and ELRP Subgroup A: (A1-A6).
Dual Participation is Prohibited- Supply-Side DR Programs (BIP, CBP, ART, DRAM, non-DRAM DR RA Contracts, DSGS Option 2), Flex Market Pilot, DAHRTP, ELRP Subgroup B: B1-B2, and Other Event-Based Load-Modifying Programs (OBMC, SLRP).
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. • November 20, 2023- PG&E requested an extension of time to comply with the Residential Net Billing Tariff to August 31, 2024. Pioneer led a coalition of CCAs that submitted a letter to the CPUC in support of the extension request to allow for a more enhanced customer service process. • December 14, 2023- CPUC granted an extension for PG&E until April 15, 2024. • December 20, 2023- An appeals court in San Francisco upholds the CPUC decision on the vote to overhaul rooftop solar rules. Protect Our Communities Foundation, Center for Biological Diversity, and the Environmental Working Group filed the lawsuit. This decision could be taken to the Supreme Court. • April 22, 2024, Pioneer plans to contact customers impacted by the Solar Billing Plan. The initial analysis is about 1,800 customers will be impacted. Mailer should drop around April 22, which is after PG&E mailers and before customers receive bills that reflect any changes due to the Solar Billing Plan. Mailer will include general information about what the Solar Billing Plan is and the “Top 5 Things to Know About the Sollar Billing Plan.”
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).
Attachment: 2 Agenda Date: 3/21/2024
• 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.
• 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.
• November 30, 2023- The PD for the PG&E ERRA Forecast came out. There were a couple of disputed issues including whether to amortize the 2023 trigger balance over 6 months or 12. CalCCA was asking for 12 and PG&E was asking for 6 months. The CPUC adopted PG&E’s recommendation. The second issue was whether PG&E should apply a first-in-first-out methodology to the use of excess prior year RECs or a last-in-first-out methodology. The CPUC ruled with PG&E on a last-in-first-out methodology. • December 12, 2023- A revision to the proposed decision came out and CalCCA won its argument on first-in-first-out, meaning the CPUC is requiring PG&E to use a first-in-first-out methodology for RECs banked in or after 2019.
• December 29, 2023- PG&E submitted their Annual True-Up to change PG&E’s electric rates on January 1, 2024.
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 Attachment: 2 Agenda Date: 3/21/2024
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.
• December 14, 2023- CPUC denied CalCCA’s request for a rehearing of the decision on RA procurement obligations and the prohibition against CCA expansion for failure to comply. • January 17, 2024- Petition for Writ of Review prohibition of CCA expansion filed. Shell also filed a petition for somewhat different reasons. CPUC is seeking to consolidate since there are two filings. CalCCA did not oppose the motion.
• January 19, 2024- Proposals due in the RA proceeding for Track 1, addressing time-sensitive issues that must be resolved for the 2025 RA compliance year. CalCCA has identified 3 major problems that the RA proposals should address: RA market scarcity, the potential exercise of market power, and removing the economic incentives not to comply. CalCCA is seeking to remove the prohibition from CCA expansion in the event of noncompliance and add the ability for the CPUC to waive penalties if CCAs can show reasonable efforts to comply were unsuccessful. The RA proposal approved by CalCCA’s Board included a temporary waiver proposal for system and flexible RA from 2025 to 2027. Partial waivers would waive the penalty points and non-fiscal consequences and a full waiver would also be available that would waive financial penalties as well under certain circumstances. A slice of day waiver would also be available. • February 14, 2024, there was Proposal Workshop to discuss the various proposals. Since not everyone was able to make a presentation, there was a second workshop on February 28 where CalCCA presented its proposal.
• February 23, 2024, there was a SOD proposal workshop. CalCCA is asking for a delay in SOF implementation from 2025 until 2026 because the showing and compliance tools are not working properly.
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 in the beginning of 2024.
• January 16, 2024- The data for December’s Fast Trips and YTD data came out. These are the following circuits in Pioneer’s territory with 8 or more outages in 2023:
o Placerville 2106 (EDH)- 19
o Apple Hill 2102 (EDH)- 18
o Shingle Springs 2109 (EDH)- 11
o Mountain Quarries 2101 (EDH)- 11
o El Dorado PH 2101 (EDH)- 11
o Clarksville 2104 (EDH)- 9
o Apple Hill 2104 (EDH)- 9
o Lincoln 1101 (Placer)- 8
Attachment: 2 Agenda Date: 3/21/2024
o Penryn 1103 (Placer)- 8
o Penryn 1107 (Placer)- 8
o Brunswick 1105 (Nevada)- 17
o Brunswick 1106 (Nevada)- 15
• January 29, 2024- A data request was made by joint CCAs (including Pioneer) using the circuits listed above to PG&E requesting the number of customers served by each circuit, the number of life support customers, the number of medical baseline customers, and the number of critical facilities served by each circuit. • March 8, 2024 part of the information we were seeking regarding the data request came back. Pioneer staff will be reviewing this information over the next week.
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.
• January 17, 2024- Workshop on implementation of LMS. Comments on the workshop are due on January
31. • March 21, 2024- Pioneer’s LMS plan presented to the Pioneer’s Board for approval. • April 1, 2024, all large CCAs are required to file their plan for compliance with LMS regulations.
Marketing and Outreach Report
March 21, 2024
Notable Accomplishments
February was a short but extremely busy
month, marked by strong interest in our newly
launched LED discounted lights program,
increased Field Days, and new forms of
outreach.
In partnership with CalForests, Sierra Pacific
Industries, and California Biomass Energy
Associates, Pioneer hosted a tour at the Sierra
Pacific Industries plant in Lincoln and hosted
seven state lawmakers. Pioneer COO Sam Kang
was a panelist in a one-hour post tour
roundtable discussion. Response to the tour
was overwhelmingly positive.
• Field Days at the Auburn Senior Center, Lincoln
Chamber of Commerce, and Grass Valley City
Hall.
• Explored partnership opportunities at Sierra
Nevada Community Hospital in Grass Valley
• Met with Placer Business Alliance to discuss
shared interests and prospective partnerships
• Active participation in area Chambers of
Commerce, including sponsoring Government
Relations Committees and select events.
• Partnered with on a legislative tour at the SPI’s
Lincoln facilities.
• Attended Assemblymember Joe Patterson
Ribbon-Cutting event
February Outreach
Our paid general awareness and expansion campaigns continue to drive impressions through newsprint, out-of-home/bus shelters, Google ads and paid social media ads. Ad campaigns currently rotate to ensure updated messaging. In addition to the below, radio (hyper-local KVMR radio) and television ads (KCRA – Channel 3) also are running. Combined, all elements of the current campaigns resulted in in more than 6.4 million impressions and 15,585 click in February.
General Awareness & Expansion Campaigns Heighten Interest in Pioneer Print Ads are running
weekly in multiple
publications of The Union
newspaper
Google, paid social media, and
banner ads with YubaNet are
running. Google and paid social
ads target our service area by
zipcode and demographics of
18+ male and female.
Bus Shelters – also call
Out-Of-Home ads –
reinforce savings
messages and appear in
various locations
throughout El Dorado
County. This campaign
anticipates 2.2 million
impressions from
December - May
Social Media
Pioneer is implementing a new social media strategy for engagement - diversifying content with a mix of images, video, and infographics to cater to different user preferences.
During the past two months, we have increased engagement by 82%, and our reach has increased by 43%.
Staff is “listening” to social media conversations to understand user sentiments and preferences, and then crafting content that addresses these insights. We are also collaborating with influencers and sharing or tagging posts to amplify reach and engagement with audiences. We are monitoring and analyzing engagement metrics to understand what content resonates best with the target audience.
Website Traffic Supports Success of Discount LED Program Our paid ad campaigns continue to
effectively drive traffic to the website and
support newly launched programs. February
touts impressive statistics:
• Nearly 29,000 views
• More than 13,000 users
• LED Discounts page is decisively the most
visited page on the site, followed by the
home page
Given the impending launch of several new
programs, staff is currently working on
reorganizing the website navigation to make
information more accessible to customers
and site visitors.
Chatbot Interactions Top 13,000
Our website’s chatbot significantly aided
customer service efficiency during February,
which had a significant uptick in call center
activity, due in large part to expansion
customers receiving their first bill with Pioneer
and other billing issues.
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 eiigible.
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
Page I 2
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.
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. !RP- 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 Page I 3
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.
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).
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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.
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 Page I 5
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.
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.
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