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
July 18, 2024
3:00 PM REGULAR MEETING and PUBLIC HEARING
Pioneer Community Energy Board Room
2510 Warren Drive, Suite B, Rocklin, CA 95677
Remote Location
Nevada City – City Hall, Wetherall Conference Room
317 Broad Street, Nevada City, CA 95959
PUBLIC HEARING
(ITEM 4) AUTHORIZING A RATE ADJUSTMENT EFFECTIVE JULY 1, 2024 Any member of the public who wishes to provide comment regarding this item, may do so by one of the following methods: 1) Remit written comment no later than 1:00 PM on day of meeting to: [email protected]; 2) Attend the meeting in person; or, 3) by accessing the Zoom webinar link below.
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-Raising-your-hand-in-a-webinar Public Comment via telephone (Audio Only Option)
1. Dial 1 (699) 900-6833
2. When asked for the meeting ID, enter 890 2001 7279#
3. When asked for your participant ID, press # to continue.
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.
Plf)NEER
COMMUNITY ENERGY
I. GENERAL ADMINISTRATIVE FUNCTION – PART 1
A. CALL TO ORDER
1. Roll Call
B. AGENDA REVIEW
C. PRESENTATIONS BY THE PUBLIC ON MATTERS NOT ON THE AGENDA WITHIN THE
JURISDICTION OF THE BOARD
Persons may address the Board on items not this agenda. Please limit comments to 3 minutes per person.
According to State Law (the Brown Act), items must first be noticed on the agenda before any discussion or action. The Board is prohibited from discussing issues not on the agenda brought to them at this time.
II. CONSENT AGENDA
1) APPROVAL OF THE CONSENT AGENDA
All items on the Consent Agenda have been recommended for approval by the Chief Executive Officer. 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 the minutes of the June 20, 2024, regular meeting. (ECKERT) b) FINANCE & ADMINISTRATION
Receive Fiscal Year 2023-24 Draft Financial Reports through May 2024. (KOEHN) c) FINANCE & ADMINISTRATION
Adopt Resolution to Approve an Adjusted Salary Schedule, Approve a Cost-of-Living Adjustment, Authorize Health, Dental, Vision premium enhancements, Approve a 1% increase to the Employer Contribution to Employee Retirement accounts, and Authorize a Sick leave conversion to Vacation Administrative Policy. (KOEHN)
2) REGULAR AGENDA
2) LEGISLATIVE & REGULATORY AFFAIRS
Update on Legislative Activity and Strategy (ACTION-KANG) Receive an update on legislative activity and Pioneer Community Energy strategy. 3) POWER PROCUREMENT
Adopt Resolution authorizing the Chief Executive Officer to sign an Agreement with cQuant.IO Inc. for Energy Portfolio Optimization Services (ACTION-KANG) Adopt Resolution authorizing the Chief Executive Officer to sign an agreement with cQuant for portfolio optimization and slice-of-day compliance requirements support in an amount not-to-exceed $197,500.
PUBLIC HEARING
4) ADMINISTRATION
Adopt Resolution Authorizing a Rate Adjustment Effective July 1, 2024 (ACTION- ECKERT) Adopt Resolution Authorizing a Rate Adjustment Effective July 1, 2024. 5) POWER PROCUREMENT
Update on Power Markets and Energy Procurement (DISCUSSION-KANG) Receive an update on power markets and energy procurement. 6) ADMINISTRATION
Approve the 2024-2027 Strategic Plan (ACTION-ECKERT)
Approve Pioneer Community Energy’s 2024-2027 Strategic Plan. Subsequently, staff will develop a marketable strategic plan document over the summer to be adopted at the September Board meeting.
IV. GENERAL ADMINISTRATIVE FUNCTION – PART 2
A. BOARD MEMBER COMMUNICATIONS
B. CHIEF EXECUTIVE OFFICER COMMUNICATIONS
C. ITEMS FOR INFORMATION
1. Glossary of Terms
D. ADJOURNMENT
Upcoming Meeting of the Board:
September 19, 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 July 18, 2024 regular meeting of the Pioneer Community Energy Governing Board was posted and available for public review on July 12, 2024 at the offices of Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, CA 95677; at remote location in Nevada City – City Hall, Wetherall Conference Room, 317 Broad Street, Nevada City, CA 95959; 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://pioneercommunityenergy.org/about-us/meetings-and-agendas/.
All public materials related to an item on this agenda submitted to the Governing Board after distribution of the agenda packet are also made available for public inspection on Pioneer’s website at:
https://pioneercommunityenergy.org/about-us/meetings-and-agendas/. Any document provided at the meeting by staff or by the public will be provided by the Board Clerk upon request by phone at (916) 758-8946, or by email at: [email protected].
DRAFT
PIONEER COMMUNITY ENERGY
GOVERNING BOARD
MEETING MINUTES
June 20, 2024
Entry No. 1
Heard General Administration Functions, Part I.
Call to Order
On June 20, 2024, Chair Dowdin Calvillo opened the Pioneer Community Energy Board of Directors meeting at 2:31 PM; finding no quorum, the meeting was recessed until further notice.
Chair Dowdin Calvillo reopened the meeting at 2:42 PM with a quorum of Directors present.
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; remote location at 2200 Douglas Blvd., Bldg.
A, Suite 260, Roseville, California 95661; 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://pioneercommunityenergy.org/about-us/meetings-and-agendas/.
Roll Call
Present: City of Auburn (Dowdin Calvillo), City of Colfax (Lomen), County of El Dorado (Parlin), City of Grass Valley (Arbuckle), Nevada City (Petersen), County of Placer (Jones).
Absent: Town of Loomis (Ring), County of Placer (Holmes), City of Lincoln (Karleskint), City of Placerville (Yarbrough), and City of Rocklin (Janda).
Closed Session
Adjourned to Closed Session at 2:42 PM with expected time of 3:00 PM to reconvene Regular Session.
CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE §54957.6 1) Conference with Labor Negotiators - GC §54957.6
Agency Negotiator: Board Chair
Unrepresented Employee: Executive Director
2) Conference with Labor Negotiators - GC §54957.6
Unrepresented Employee: All Employees
County of Placer (Holmes) arrived and joined Closed Session at 2:50 PM.
Town of Loomis (Ring) arrived and joined Closed Session at 2:51 PM.
Reconvened in Regular Session at 3:12 PM.
Public Report of Closed Session
In the matter of Conference with Labor Negotiators pursuant to Government Code §54957.6 regarding modifications to the employee welfare and benefits, the Board took action recommending this Board to adopt recommendations made by the Employee Health and Welfare ad hoc committee which will be placed on the July 18, 2024 Board meeting agenda.
In the matter of Conference with Labor Negotiators pursuant to Government Code §54957.6 regarding the Executive Director Employment Agreement Amendment No. 4, the Board took action recommending this Board to approve an extension for the Executive Director for three years and to make changes to his medical, dental, and vision benefit package which will be voted on in today’s open session.
ITEM 1a
DRAFT – June 20, 2024 – page 2
Agenda Review
Reviewed and revised with no objection, the meeting agenda for June 20, 2024, by (1) removing Item 1f, Pioneer Community Energy’s 2024-2027 Strategic Plan, from this consent agenda to the regular agenda for July 18, 2024; and, (2) moving Item 2, Presentation from Dr. Ahmad Faruqui, to follow Items 3 and 4.
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 the Consent Agenda less (1) item 1e, adopting a resolution establishing a Board Member (Directors) Reimbursement Policy, which was pulled for separate consideration; and, (2) less item 1f, approving Pioneer Community Energy’s 2024-2027 Strategic Plan, which was pulled from this consent agenda to the regular agenda for July 18, 2024.
a) Approved the minutes of the May 16, 2024, special meeting. b) Received Fiscal Yar 2023-24 Draft Financial Reports through April 2024. c) Adopted Resolution 2024-18 approving and authorizing the Chief Executive Officer to execute a renewal agreement with Maher Accountancy for accounting services from July 1, 2024 through June 30, 2025 for an amount not to exceed $206,714.
d) Adopted Resolution 2024-19 approving Amendment No. 4 to the Employment Agreement for Executive Director/Chief Executive Officer between Pioneer Community Energy and Mr. Don Eckert.
MOTION: Holmes/Arbuckle. Vote: 8:0:3.
ROLL CALL: Arbuckle, Dowdin Calvillo, Holmes, Ivy, Jones, Parlin, Petersen, Ring.
No/Abstain: None.
Absent: Janda, Karleskint, Yarbrough.
Entry No. 3
Considered Consent Agenda Item 1e, Adopt resolution establishing a Board Member (Directors) Reimbursement Policy, which had been pulled for separate consideration.
Adopted Resolution 2024-20 establishing a Board Member (Directors) Reimbursement Policy, as presented.
MOTION: Holmes/Lomen. Vote: 8:0:3.
ROLL CALL: Arbuckle, Dowdin Calvillo, Holmes, Ivy, Jones, Parlin, Petersen, Ring.
No/Abstain: None.
Absent: Janda, Karleskint, Yarbrough.
DRAFT – June 20, 2024 – page 3
Entry No. 4
Adopt Resolution Approving Fiscal Year 2024-25 Budget
Adopted Resolution 2024-21 approving the recommended Fiscal Year 2024-25 Budget; approving the job descriptions for the Information Technology Analyst, Information Technology Administrator, and Project Development Manager; and approving the June 2024 Salary Schedule.
MOTION: Holmes/Petersen. Vote: 8:0:3.
ROLL CALL: Arbuckle, Dowdin Calvillo, Holmes, Ivy, Jones, Parlin, Petersen, Ring.
No/Abstain: None.
Absent: Janda, Karleskint, Yarbrough.
Entry No. 5
Revised Second Amended and Restated JPA Update
Adopted Resolution 2024-22 of the Governing Board of Pioneer Community Energy approving the Revised Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy with any changes requested by the Governing Body.
MOTION: Petersen/Lomen. Vote: 8:0:3.
ROLL CALL: Arbuckle, Dowdin Calvillo, Holmes, Ivy, Jones, Parlin, Petersen, Ring.
No/Abstain: None.
Absent: Janda, Karleskint, Yarbrough.
The Revised Second Amended and Restated JPA was approved by two-thirds majority of the Board of Directors, and will move forward to the Member Agencies for 100% approval. The Revised Second Amended and Restated JPA will be effective after all Member Agencies have formally approved.
Entry No. 6
Guest Presentation – Dr. Ahmad Faruqui
Received a presentation on How the Golden State Lost Its Way on the Road to Electrification. 4:00 PM - Directors Holmes and Jones dismissed themselves from the meeting due to scheduling conflicts.
Entry No. 7
Heard General Administration Functions, Part II.
Chief Executive Officer Communications
Chief Executive Officer (CEO) Eckert introduced two of Pioneer Community Energy’s new employees – Kelly Neuer, Customer Care Coordinator, and Jake Trumbull, Communications Coordinator.
CEO Eckert also informed the Board that Pioneer has been represented at El Dorado County Fair for the last two years, and will be at the Placer County Fair this week. Pioneer sponsored the Wheelbarrow Races and had banner opportunities at the El Dorado County Fair this past week.
CEO Eckert concluded by acknowledging and expressing appreciation for Patrick Enright, Inder Khalsa, and other members of Richards, Watson & Gershon (RWG) as General Counsel. Pioneer’s relationship with RWG began in 2021. This year, a Request for Proposals was issued, and Pioneer will be transitioning to a new General Counsel from the firm of Colantuono, Highsmith & Whatley in July.
DRAFT – June 20, 2024 – page 4
Informational Items
Received the Glossary of Terms.
Adjournment
The meeting adjourned at 4:44 PM.
Staff Report – Item 1b
To: The Governing Board
From: Eric Acedo, Sr. Financial Analyst
Item 1b: Receive Fiscal Year 2023-24 Draft Financial Reports Through May 2024 Date: 7/18/2024
RECOMMENDATION
Receive Fiscal Year 2023-24 Draft Financial Reports through May 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 May 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 eleven months of the fiscal year is $49.2 million.
ATTACHMENTS
1. Financial Reports through May 31, 2024
Plf)NEER
COMMUNITY ENERGY
1 ACCOUNTANTS’ COMPILATION REPORT
Management
Pioneer Community Energy
Management is responsible for the accompanying financial statements of the CCA Program of Pioneer Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of May 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 AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America in these interim financial statements. Pioneer Community Energy’s annual audited financial statements include the note disclosures and statement of cash flows omitted from these interim statements. If the omitted disclosures and the statement of cash flows were included in these financial statements, they might influence the user’s conclusions about Pioneer Community Energy’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Pioneer Community Energy because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
July 3, 2024
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com CCA Fund
ASSETS
Current assets
Cash and cash equivalents 11,985,096$
Investments 84,100,177
Accounts receivable, net of allowance 17,207,674
Accrued revenue 8,216,095
Other receivables 457,481
Interest receivable 445,750
Prepaid expenses 15,296,364
Deposits 2,655,652
Total current assets 140,364,289
Noncurrent assets
Capital assets, net of depreciation 216,672
Lease asset, net of amortization 1,020,020
Total noncurrent assets 1,236,692
Total assets 141,600,981
LIABILITIES
Current liabilities
Accrued cost of electricity 12,824,365
Accounts payable 618,968
Other accrued liabilities 678,374
Interest payable 15,040
Deposits 693,756
Note payable 762,013
Lease liability 115,942
Total current liabilities 15,708,458
Noncurrent liabilities
Note payable 3,774,703
Lease liability 904,078
Total noncurrent liabilities 4,678,781
Total liabilities 20,387,239
NET POSITION
Net investment (deficit) in capital assets 216,672
Unrestricted net position 120,997,070
Total net position $ 121,213,742
PIONEER COMMUNITY ENERGY
STATEMENT OF NET POSITION
As of May 31, 2024
CCA FUND
See accountants' compilation report. 2
CCA Fund
OPERATING REVENUES
Electricity sales, net 193,093,158$
Other income 243,608
Total operating revenues 193,336,766
OPERATING EXPENSES
Cost of electricity 136,121,500
Contract services 6,136,048
Staff compensation 3,190,038
Other operating expenses 1,054,189
Total operating expenses 146,501,775
Operating income (loss) 46,834,991
NONOPERATING REVENUES (EXPENSES)
Interest and investment returns 3,188,014
Interest and financing expense (794,670)
Nonoperating revenues (expenses), net 2,393,344
CHANGE IN NET POSITION 49,228,335
Net position at beginning of period 71,985,407
Net position at end of period 121,213,742$
PIONEER COMMUNITY ENERGY
Eleven Months Ended May 31, 2024
AND CHANGES IN NET POSITION
STATEMENT OF REVENUES, EXPENSES
CCA FUND
See accountants' compilation report. 3
Participation Rates – May 2024
Participation Rate March 2024 April 2024 May 2024
AUBURN INC 85.54% 85.68% 85.54%
COLFAX INC 88.36% 88.43% 88.08%
GRASS VALLEY INC 96.90% 95.79% 97.71%
LINCOLN INC 82.82% 82.87% 82.84%
LOOMIS INC 87.65% 87.77% 87.56%
NEVADA CITY INC 96.26% 96.26% 98.39%
PLACERVILLE INC 85.98% 85.80% 85.66%
ROCKLIN INC 90.61% 90.48% 90.69%
UNINC EL DORADO CO 80.44% 80.12% 79.99%
UNINC PLACER CO 84.89% 84.92% 84.81%
Grand Total 84.67% 84.51% 84.56%
4 5
ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Pioneer Community Energy
Management is responsible for the accompanying special purpose budgetary comparison schedule for the CCA Program of Pioneer Community Energy, a California Joint Powers Authority, for the period ended May 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.
Maher Accountancy
San Rafael, CA
July 3, 2024
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 2023/24 YTD
Amended
Budget
2023/24 YTD
Actual
2023/24 YTD
Variance
(Under) Over
2023/24
YTD
Actual/
Budget %
2023/24
Amended
Budget
2023/24
Amended
Budget
Remaining
ENERGY REVENUES
Energy Sales $ 202,669,256 $ 195,703,534 $ (6,965,722) 97% $ 225,938,000 $ 30,234,466 Green100 Sales 27,330 32,055 4,725 117% 30,000 (2,055)
Congestion Revenue Rights 4,554,923 7,873,513 3,318,591 173% 5,000,000 (2,873,513) Less Uncollectible Accounts (2,736,404) (2,642,430) 93,974 97% (3,050,568) (408,138) Total Operating Revenues 204,515,104 200,966,672 (3,548,432) 227,917,432 26,950,760
ENERGY EXPENSES
Power Supply 165,410,000 143,995,013 (21,414,987) 87% 183,919,000 39,923,987 OPERATING MARGIN 39,105,104 56,971,659 17,866,555 43,998,432 (12,973,227)
OPERATING EXPENSES
Administration
Compensation 720,822 566,488 (154,334) 79% 780,507 214,019 Contract services 321,631 96,284 (225,347) 30% 341,325 245,041 Operating expenses 750,439 596,488 (153,951) 79% 781,126 184,638 Total Administration expenses 1,792,892 1,259,260 (533,631) 70% 1,902,958 643,698 Finance
Compensation 760,711 745,674 (15,037) 98% 829,866 84,192 Contract services 535,983 381,346 (154,637) 71% 571,618 190,272 Operating expenses 241,344 211,899 (29,446) 88% 256,103 44,204 Total Finance expenses 1,538,038 1,338,919 (199,119) 87% 1,657,587 318,668 Power Procurement
Compensation 765,967 588,248 (177,719) 77% 829,237 240,989 Contract services 1,970,172 1,687,854 (282,318) 86% 2,120,341 432,487 Operating expenses 39,417 18,731 (20,686) 48% 43,000 24,270 Total Power Procurement expenses 2,775,556 2,294,833 (480,724) 83% 2,992,578 697,745 Customer Care
Compensation 665,111 446,580 (218,531) 67% 725,576 278,996 Contract services 2,677,923 2,473,430 (204,492) 92% 2,921,370 447,940 Operating expenses 16,729 19,365 2,636 116% 18,250 (1,115) Total Customer Care expenses 3,359,763 2,939,375 (420,388) 87% 3,665,196 725,821 Marketing & Communications
Compensation 254,905 226,490 (28,414) 89% 283,922 57,432 Contract services 1,014,163 1,051,151 36,987 104% 1,106,360 55,209 Operating expenses 348,898 297,018 (51,879) 85% 361,600 64,582 Total Marketing expenses 1,617,966 1,574,659 (43,307) 97% 1,751,882 177,223 Legislative & Regulatory
Compensation 529,588 445,213 (84,374) 84% 577,732 132,519 Contract services 210,017 119,233 (90,783) 57% 217,275 98,042 Operating expenses 5,775 8,265 2,490 143% 6,300 (1,965) Total Legislative expenses 745,379 572,712 (172,667) 77% 801,307 228,595 Programs
Compensation 192,759 159,072 (33,688) 83% 210,283 51,211 Contract services 282,839 259,335 (23,504) 92% 324,400 65,065 Operating expenses 1,357,735 1,757 (1,355,977) 0% 1,465,317 1,463,560 Total Programs expenses 1,833,333 420,164 (1,413,169) 23% 2,000,000 1,579,836 Total Operating Expenses 13,662,927 10,399,922 (3,263,005) 76% 14,771,508 4,371,586
NON-OPERATING REVENUES (EXPENSES)
Investment gains (losses) 2,020,833 3,188,014 1,167,180 2,500,000 (688,014) Term Loan Debt Service (870,833) (837,441) 33,392 96% (950,000) (112,559) Additional Term Loan Principal (2,100,000) (2,100,000) - (2,100,000) - Line/Letter of Credit Fees (600,000) (520,690) 79,310 87% (650,000) (129,310) Financial Security Requirement (360,000) - 360,000 0% (360,000) (360,000) Nonoperating revenues (expenses), net (1,910,000) (255,118) 1,654,882 (1,560,000) (1,304,882) Total Expenses and Non-Operating Activity 180,982,927 154,650,053 (26,332,874) 200,250,508 45,600,455 Contribution to/(from) Reserves 23,532,177$ 46,316,619$ 22,784,442$ 27,666,924$ (18,649,695)$
BUDGETARY COMPARISON SCHEDULE
Eleven Months Ended May 31, 2024
PIONEER COMMUNITY ENERGY
CCA FUND
Staff Report – Item 1c
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1c: Adopt Resolution to Approve an Adjusted Salary Schedule, Approve a Cost-of-Living Adjustment, Authorize Health, Dental, Vision premium enhancements, Approve a 1% increase to the Employer Contribution to Employee Retirement accounts, and Authorize a Sick leave conversion to Vacation Administrative Policy Date: 7/18/2024
RECOMMENDATION
Staff recommends the Board Adopt Resolution to Approve an Adjusted Salary Schedule, Approve a Cost-of-Living Adjustment, Authorize Health, Dental, Vision premium enhancements, Approve a 1% increase to the Employer Contribution to Employee Retirement accounts, and Authorize a Sick leave conversion to Vacation Administrative Policy.
BACKGROUND
Pioneer employees are not represented by a union or an employee association but instead are unrepresented.
This year the Board created an ad hoc Employee Health and Welfare committee consisting of Board members to review the employee salary and benefit package and possible adjustments and benefit enhancements. The committee met on May 8th, 2024, and June 6, 2024, and discussed the salary and benefit package with the Board at the closed session on June 20, 2024. The Employee Welfare and Benefit ad hoc committee recommended the below modifications to the employee salary and benefits package.
ANALYSIS & DISCUSSION
Salary Schedule: A 6% adjustment to the salary schedule. The salary schedule has fallen behind the change in the consumer price index since February 2021 by 8.9%. The 6% adjustment aligns the salary schedule more closely to the change in the index. Pioneer’s salary schedule is structured as a salary range rather than a salary step system. This means that even when the salary schedule is adjusted upward an employee will only advance in the range contingent on the employee receiving a satisfactory annual evaluation. The exception would be for employees that are at the salary schedule minimum who would then move up to the new salary schedule minimum. A couple employees are paid at the minimum salary range and the cost of those employees moving to the new minimum is $8,700. Employees who receive this increase would not receive a Cost-of-Living Adjustment.
Cost-of-Living Adjustment: A 3% Cost of Living increase to the current salary of all employees ($85,300). This change does not adjust the Salary Schedule adjustment discussed in the prior paragraph.
Retirement Benefits Enhancement: Unlike many California governments, Pioneer does not offer a defined retirement benefit plan, such as CalPERS or SCERS. However, Pioneer does provide a 401a compensation plan that is aligned with IRS contribution limits for a 457b plan. The current contribution is $23,000 for management staff and $14,260 for all other employees. In addition to this fixed contribution, Pioneer also provides a contribution based on a percentage of salary, currently 3%. This retirement benefit enhancement would increase the percentage by 1%, going from 3% to 4% of salary. The increased contribution would be a cost of $32,000.
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COMMUNITY ENERGY
Agenda Item: 1c Agenda Date: 7/18/2024
Dental/Vision Premium: Currently Pioneer provides employees with a Dental/Vision stipend for premium coverage. This benefit would be simplified so that the premium for an employee and dependents is 100% employer paid. This benefit would start with the premiums for the 2025 calendar year and would cost $250.
Health (medical) Premium: This benefit would reset the Health Stipend to equal the Special District Risk Management Authority January 2025 Platinum PPO A plan premium. Annual health stipend increases thereafter would be equal to the Medical Care index with a not-to-exceed increase cap of 5%. The Medical Care index changes since 2012 has fluctuated from (.06%) to 10.32%. This benefit would begin with the January 2025 premium and the cost is estimated to be $91,000.
Sick Leave conversion to Vacation Leave: This would allow employees to convert once a calendar year up to 20 hours of sick time to 20 hours of vacation time. This benefit would only be available to employees who after the leave conversion have a minimum sick leave balance of 240 hours. This benefit does not have a cost to Pioneer, but it does have a value estimated to be $12,000.
Jury Duty or Witness leave: This authorizes a correction to the Employee Handbook to ensure no loss of pay to employees when fulfilling their civic duty.
Summary: The overall goal of these changes is to maintain Pioneer’s competitiveness to recruit and attract qualified job candidates and retain our employees. With these proposed changes, labor costs will account for approximately 2% of the overall expense budget.
STRATEGIC PLAN
The recommended salary schedule and benefit changes support the 2024-2027 Strategic Plan which is to be a Great Place to Work.
FISCAL IMPACT
The Fiscal Year 2024-25 cost of providing the Cost-of-Living Adjustment and benefit enhancements is estimated to be $217,250 or 6.9% as a percentage of payroll. Staffing costs remain at 2% of the overall budget and don’t impact rates.
ATTACHMENTS
1. Resolution to Approve an Adjusted Salary Schedule, Approve a Cost-of-Living Adjustment, Authorize Health, Dental, Vision premium enhancements, Approve a 1% increase to the Employer Contribution to Employee Retirement accounts, and Authorize a Sick leave conversion to Vacation Administrative Policy Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held July 18, 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 Governing Board of Pioneer Community Energy (“Pioneer”) adopted the 2021- 2024 Strategic Plan that identifies that Pioneer is to be an Employer of Choice, and the 2024-27 Strategic Plan under development identifies that Pioneer would be a Great Place to Work; and WHEREAS, the Employee Welfare and Benefits ad hoc committee, consisting of Pioneer Board members reviewed and provided input on employee salary and benefit packages, adjustments, and additions; and
WHEREAS, employees only move up on the salary schedule with a satisfactory annual evaluation unless the Board directs a Cost of Living adjustment; and WHEREAS, the Salary Matrix adjustments compared to the United States Bureau of Labor Statistics consumer price index for all items in San Francisco-Oakland-Hayward since February 2021 has fallen 8.9% behind the index; and
In the matter of: ADOPT RESOLUTION TO
APPROVE AN ADJUSTED SALARY SCHEDULE,
APPROVE A COST-OF-LIVING ADJUSTMENT,
AUTHORIZE HEALTH, DENTAL, VISION PREMIUM
ENHANCEMENTS, APPROVE A 1% INCREASE TO
THE EMPLOYER CONTRIBUTION TO EMPLOYEE
RETIREMENT ACCOUNTS, AND AUTHORIZE A
SICK LEAVE CONVERSION TO VACATION
ADMINISTRATIVE POLICY
Resolution No. ___
2 WHEREAS, the Employee Health and Welfare ad hoc committees recommends a 6% increase to the minimum and maximum range in the salary schedule and employees at the minimum range will receive an increase, but not a Cost-of-Living adjustment; and WHEREAS, Pioneer’s member agencies have provided Cost-of-Living salary adjustments in a range of 2% to 5%; and
WHEREAS, the Employee Health and Welfare ad hoc committee recommends a Cost-of-Living salary adjustment that will increase employee current salaries by 3%; and WHEREAS, an enhanced Health/Dental/Vision employer premium contribution would assist Pioneer to both retain employees and attract exceptional future employees; and WHEREAS, the Employee Health and Welfare ad hoc committee recommends a 100% employer paid premium for Dental and Vision employee and dependent coverage; and WHEREAS, the Employee Health and Welfare ad hoc committee recommends that the employer health stipend would be reset to equal the January 2025 Platinum PPO A plan offered through the Small District Risk Management Authority (SDRMA) for employee and dependent coverage with an annual health stipend increase set to the Medical Care San Francisco-Oakland-Hayward index with a not to exceed 5% increase annually; and WHEREAS, the Employee Health and Welfare ad hoc committee recommends an increase of 1% from 3% to a 4% employer contribution to each employee retirement account as a retirement benefit enhancement; and
WHEREAS, the Employee Health and Welfare ad hoc committee recommends creating a sick leave conversion to vacation leave benefit that would be available to employees with a high level of accrued sick leave.
WHEREAS, an error in the Employee Handbook does not support keeping a non-management employee whole for serving on jury duty, the Employee Health and Welfare ad hoc committee recommends a correction to ensure no loss of pay to employees when fulfilling their civic duty.
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 a 6% increase to the minimum and maximum salary schedule effective July 15th, 2024, as presented in Attachment A.
3. All non-contract employees will receive a Cost-of-Living Salary adjustment of 3% of their salary effective July 15, 2024, the beginning of a pay period, unless the change in the minimum salary schedule causes an employee to receive a salary increase.
4. Resolution 2022-13 Health/Dental/Vision section is replaced with this Resolution.
5. 100% employer paid Dental and Vision premiums for employee and dependents effective January 2025.
Resolution No. ___
3 6. Reset the employer paid health stipend for employee and dependents to SDRMA January 2025 Platinum PPO A premium, with annual increases in each January thereafter based on the change in the United States Bureau of Labor Medical Care San Francisco-Oakland-Hayward index (or equivalent if replaced) increase (the annual increase will be measured each February to the prior year February) with a not to exceed 5% increase annually.
7. Resolution 2023-16 retirement benefit enhancement section is replaced with this Resolution.
8. Approve a retirement benefit enhancement for all employees by providing an employer contribution of 4% of employees base salary (excludes stipends such as auto allowances, health in lieu etc.) paid bi-weekly to each employee’s retirement account, effective July 15, 2024, the beginning of a pay period.
9. Direct the creation of a sick leave to vacation leave Administrative Policy with the parameters of a maximum 20 hours conversion of sick time to vacation leave once a calendar year, but only if a minimum of 240 hours of sick leave remains after the leave conversion.
10. Amend the Jury Duty or Witness Leave section of the Employee Handbook to ensure that all employees are able to fulfill their civic duty without a loss of pay or use of vacation leave.
11. This resolution shall take effect immediately.
Attachment A: Salary Schedule
Class/Position Title Minimum Maximum Minimum Maximum
Administrative Assistant $51,642 $77,206 $54,741 $81,838 Account Representative I $78,563 $117,453 $83,277 $124,500 Account Representative II $86,420 $129,197 $91,605 $136,949 Board Clerk/Executive Assistant $75,377 $112,689 $79,900 $119,450 Chief Executive Officer $239,314 $357,773 $253,673 $379,239 Chief Operating Officer $205,581 $307,344 $217,916 $325,785 Commercial Coordinator $89,143 $133,267 $94,492 $141,263 Communications Coordinator $72,483 $108,361 $76,832 $114,863 Community Outreach Manager $120,911 $180,760 $128,166 $191,606 Customer Care Coordinator $89,143 $133,267 $94,492 $141,263 Customer Care Manager $109,245 $163,321 $115,800 $173,120 Director of Finance and Administration $165,126 $246,852 $175,034 $261,663 Director of Communications $165,126 $246,852 $175,034 $261,663 Financial and Administrative Analyst I $72,483 $108,361 $76,832 $114,863 Financial and Administrative Analyst II $79,731 $119,197 $84,515 $126,349 Information Technology Administrator $115,934 $173,322 $122,890 $183,721 Information Technology Analyst $72,483 $108,361 $76,832 $114,863 Internal Operations Coordinator $102,515 $153,258 $108,666 $162,453 Key Accounts Manager $109,245 $163,321 $115,800 $173,120 Legislative and Regulatory Analyst I $91,647 $137,014 $97,146 $145,235 Legislative and Regulatory Analyst II $100,812 $150,715 $106,861 $159,758 Legislative and Regulatory Manager $120,910 $180,760 $128,165 $191,606 Management Analyst $91,647 $137,014 $97,146 $145,235
Manager, Quantitative Analysis and Modeling $115,934 $173,322 $122,890 $183,721 Power Resources Manager $115,934 $173,322 $122,890 $183,721 Power Resources Analyst I $91,112 $136,212 $96,579 $144,385 Power Supply Contract Manager $115,934 $173,322 $122,890 $183,721 Program Manager $102,515 $153,258 $108,666 $162,453
Program Specialist I $93,194 $139,326 $98,786 $147,686
Project Development Manager $115,934 $173,322 $122,890 $183,721 Residential Coordinator $89,143 $133,267 $94,492 $141,263 Senior Commercial Coordinator $102,515 $153,258 $108,666 $162,453 Senior Financial Analyst $101,300 $151,438 $107,378 $160,524 Senior Manager, Quantitative Analysis and
Modeling
$127,527 $190,654 $135,179 $202,093
Senior Residential Coordinator $102,515 $153,258 $108,666 $162,453 Attachment A
SALARY SCHEDULE 6% INCREASE
June 2024 FISCAL YEAR 2024-25
SALARY SCHEDULE PROPOSED
Class/Position Title Minimum Maximum Minimum Maximum
Administrative Assistant $51,642 $77,206 $54,741 $81,838 Account Representative I $78,563 $117,453 $83,277 $124,500 Account Representative II $86,420 $129,197 $91,605 $136,949 Board Clerk/Executive Assistant $75,377 $112,689 $79,900 $119,450 Chief Executive Officer $239,314 $357,773 $253,673 $379,239 Chief Operating Officer $205,581 $307,344 $217,916 $325,785 Commercial Coordinator $89,143 $133,267 $94,492 $141,263 Communications Coordinator $72,483 $108,361 $76,832 $114,863 Community Outreach Manager $120,911 $180,760 $128,166 $191,606 Customer Care Coordinator $89,143 $133,267 $94,492 $141,263 Customer Care Manager $109,245 $163,321 $115,800 $173,120 Director of Finance and Administration $165,126 $246,852 $175,034 $261,663 Director of Communications $165,126 $246,852 $175,034 $261,663 Financial and Administrative Analyst I $72,483 $108,361 $76,832 $114,863 Financial and Administrative Analyst II $79,731 $119,197 $84,515 $126,349 Information Technology Administrator $115,934 $173,322 $122,890 $183,721 Information Technology Analyst $72,483 $108,361 $76,832 $114,863 Internal Operations Coordinator $102,515 $153,258 $108,666 $162,453 Key Accounts Manager $109,245 $163,321 $115,800 $173,120 Legislative and Regulatory Analyst I $91,647 $137,014 $97,146 $145,235 Legislative and Regulatory Analyst II $100,812 $150,715 $106,861 $159,758 Legislative and Regulatory Manager $120,910 $180,760 $128,165 $191,606 Management Analyst $91,647 $137,014 $97,146 $145,235
Manager, Quantitative Analysis and Modeling $115,934 $173,322 $122,890 $183,721 Power Resources Manager $115,934 $173,322 $122,890 $183,721 Power Resources Analyst I $91,112 $136,212 $96,579 $144,385 Power Supply Contract Manager $115,934 $173,322 $122,890 $183,721 Program Manager $102,515 $153,258 $108,666 $162,453
Program Specialist I $93,194 $139,326 $98,786 $147,686
Project Development Manager $115,934 $173,322 $122,890 $183,721 Residential Coordinator $89,143 $133,267 $94,492 $141,263 Senior Commercial Coordinator $102,515 $153,258 $108,666 $162,453 Senior Financial Analyst $101,300 $151,438 $107,378 $160,524 Senior Manager, Quantitative Analysis and
Modeling
$127,527 $190,654 $135,179 $202,093
Senior Residential Coordinator $102,515 $153,258 $108,666 $162,453 Attachment A
SALARY SCHEDULE 6% INCREASE
June 2024 FISCAL YEAR 2024-25
SALARY SCHEDULE PROPOSED
Staff Report – Item 2
To: The Governing Board
From: Chau Pham, Legislative and Regulatory Analyst
Item 2: Update on Legislative Activity and Strategy
Date: 7/18/2024
RECOMMENDATION
Receive an update on legislative activity and Pioneer Community Energy (Pioneer) strategy.
BACKGROUND
Pioneer actively supports its member agencies through legislative and regulatory channels such as lobbying and participating in regulatory proceedings of importance to Pioneer. A key Pioneer Board initiative is to procure more biomass energy by making it more affordable. To that end, Pioneer was successful in 2021 to cosponsor and lead the passage of AB 843 (on a unanimous, bipartisan basis) which allowed community choice aggregators (CCAs) like Pioneer to participate in the Bioenergy Market Adjusting Tariff to help reduce biomass energy procurement costs.
Pioneer sponsored SB 488 in the 2023 legislative session that sought to allow CCAs access to the unused volumes from the previous Bioenergy Renewable Auction Mechanism program and was not successful mainly due to concerns about additional funding required. Rather than continue seeking funds ex post facto, Pioneer is now focusing on attaining funds ex ante through bills that seek to access funds designated specifically for biomass.
There is an active discussion in the legislature about how to supplant ratepayer funds with an alternative funding source to support energy policy goals, including climate goals and infrastructure needs. These alternative funding sources include the greenhouse gas reduction fund and potential climate bond funding for infrastructure costs. Pioneer will work with its lobbyist, Niemela Pappas and Associates (NPA), in developing and implementing a strategy to access state funding to support biomass development with the assistance of key biomass advocacy organizations and the agricultural community.
Since direct ratepayer funding and state general fund are improbable given ratepayer and fiscal outlook, Pioneer/NPA will specifically review the potential for biomass to be included in any leadership agreement around legislation designed to provide GGRF funding for wildfire management. Additionally, Pioneer/NPA will specifically review the potential for biomass infrastructure to be an eligible bond expense in any climate bond agreement or subsequent legislation expending climate bond proceeds.
ANALYSIS & DISCUSSION
NPA is a top 9 lobbying firm in California, with a decade of experience representing clients in front of the California Legislature, the Governor’s Administration, and State Agencies. NPA’s expansive network and diverse portfolio of clients allows them to have eyes and ears at every step of the legislative and regulatory process.
Pioneer’s lobbying efforts will be primarily led by Firm Partner Erin Niemela, along with Legislative Advocate Cassandra Mar, who combined, have a breadth of experience in energy legislation and advocacy. As our lobbyists, NPA will anticipate and identify key issues and opportunities relating to biomass, allowing Pioneer to effectively strategize and act swiftly to secure funding opportunities.
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COMMUNITY ENERGY
Agenda Item: 2 Agenda Date: 7/18/2024
Current Landscape of the State Capitol
As the State Capitol enters the last 30 days of its legislative year, California is faced with a $45 billion budget deficit, which represents approximately 1/6th of the General Fund. As a result, the State has eliminated many discretionary energy programs, such as distributed energy resources. This budget deficit is projected to occur on a similar scale next year and for the foreseeable future, which will require creative strategies to secure future funding for energy projects and programs. Two potential funding opportunities for energy infrastructure and programs include the recently passed $10 billion Climate Bond and the Senate’s upcoming “California Build Package.” However, as it currently stands with the limited days and funds left to enact legislation, the Capitol is not welcoming any new legislative ideas, unless they come from Capitol leadership.
Current Landscape of Energy Legislation
California is currently grappling with an energy ratepayer crisis, as electricity prices have soared in recent years and are expected to continue with the implementation of the new income-graduated fixed charge. While the Legislature uniformly agrees that utility bills are too expensive, they do not agree on a single solution to remedy the issue. In this year’s legislative session, multiple bills aimed at addressing energy affordability were introduced, with proposals ranging from cutting energy efficiency funds from the Public Purpose Program to using the “California Build Package” for energy infrastructure development. New Administration proposals regarding energy affordability are expected to soon arise, as discussions over the energy affordability crisis continue over the summer recess. However, any and all proposals that would result in additional costs for ratepayers will be considered dead on arrival, as legislators are currently extremely cautious about increasing the cost burden on ratepayers.
Current Landscape of Biomass Legislation
The key legislative challenges to biomass development include:
• Existing BioMAT program is limited in capacity and is perceived as not cost-effective (Feed-in Tariff) • The Governor and Legislature want to reduce the cost of utility bills • The current “least-cost; best fit” evaluation standard for procurement does not amply factor-in the cost of new Transmission and Distribution (T&D), the biggest driver for current utility bills – nor does it sufficiently reward the cost-effectiveness of baseload power • No General Fund flexibility for funding biomass
• No special fund flexibility for funding biomass, in funds such as the Public Interest Energy Research Program (PIER), California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA), and Greenhouse Gas Reduction Fund (GGRF)
• The California Infrastructure and Economic Development Bank (I-Bank) funding explicitly cannot apply to Biomass
• Environmental resistance to biomass, which results in banning “combustion” technologies The key legislative opportunities to the development of biomass include:
• Energy/Land Use Leadership-level discussion which is likely pending • Working with our constituency of key agricultural members with influence including Assembly Majority Leader Aguiar-Curry and Senator Alvarado-Gil, along with additional strong allies such as Senator Niello, Senator Dahle, and Assemblymember Dahle
• Potential partnerships with key stakeholders including CCAs (like Redwood Coast Energy & Orange County Power Authority), California Biomass Energy Alliance, Bioenergy Association of California, California Forestry Association (CalForest), Rural County Representatives of California (RCRC), League of California Cities, Local Air Quality Control Districts, Agricultural Associations (tree crops in particular)
Legislative Strategy
Pioneer will support legislation that allows it to develop and procure local energy generation resources to meet the needs of its electric customers, with a particular focus on funding for biomass and baseload resources. With support from NPA, Pioneer will build its brand in the Legislature by building allies with key stakeholder organizations and legislators, strengthening our existing relationships with our representatives, and expanding Agenda Item: 2 Agenda Date: 7/18/2024
our constituency of supporters for biomass. In the near term (within 1 year), Pioneer will aim to push statutory language to allow biomass access to the California Infrastructure and Economic Development Bank (IBank) funding. Currently, IBank statute includes a category for Climate Catalyst Projects fund, which explicitly excludes “combustion biomass conversion” from their definition of “clean energy production”. To access this funding source, Pioneer will coordinate with key stakeholders and legislators to secure a statutory fix in any remaining energy leadership deals to allow biomass to be eligible for IBank funding. In the long term (1+ year), Pioneer intends to introduce bill language to amend the “least-cost; best-fit” procurement criteria to benefit biomass, introduce bill language to give advantage to biomass in the 100% clean energy standard, and partner with the Department of Conservation (DOC) to access the $50 million in the Climate Bond, specifically allocated to the DOC for the development of new biofuels technology.
STRATEGIC PLAN
The recommendation supports the Operational Excellence priority.
FISCAL IMPACT
There is no fiscal impact with the recommendation.
ATTACHMENTS
There is no attachment to the report.
Staff Report – Item 3
To: The Governing Board
From: Nick Yurashku, Manager of Quantitative Analysis and Modeling Item 3: Adopt Resolution authorizing the Chief Executive Officer to sign an agreement with cQuant.IO Inc. (cQuant) for Energy Portfolio Optimization Services Date: 7/18/2024
RECOMMENDATION
Adopt Resolution authorizing the Chief Executive Officer to sign an Agreement with cQuant for portfolio optimization and slice-of-day (SOD) compliance requirements support in an amount not-to-exceed $197,500.
BACKGROUND
The California Public Utilities Commission (CPUC) has issued several critical decisions aimed at enhancing grid reliability and preventing rolling blackouts. Specifically, Decision 21-06-035 (Mid-term Reliability or MTR) and Decision 23-02-040 (Updating and Adding to D.21-06-035 MTR) mandated that all load-serving entities procure additional energy capacity. These decisions highlight the urgent need for advanced technology to manage and optimize energy portfolios effectively.
The CPUC has also most recently developed reforms to its processes, including a “slice-of-day” resource adequacy program designed to ensure that load-serving entities procure sufficient resources to meet peak demand and charge system batteries after solar energy declines at the end of the day. Specifically, the CPUC’s 24-hour slice-of-day framework requires each load-serving entity to demonstrate enough capacity to satisfy its specific gross load profile — including a planning reserve margin — in all 24 hours on the ISO’s “worst day” of each month. “Worst day” is defined as the day of the month that contains the hour with the highest peak load forecast. The SOD compliance requirement begins in 2025.
ANALYSIS & DISCUSSION
In its compliance efforts with the CPUC directives, Pioneer is committed to adopting cutting-edge solutions that assist in portfolio optimization and slice-of-day compliance. These capabilities are essential for selecting resources that best fit Pioneer’s portfolio, pricing the resource appropriately, balancing supply and demand, optimizing resource dispatch, and ensuring the reliability of the energy grid. The unique demands of our energy landscape require sophisticated tools that can handle the complexities of modern energy markets and regulatory requirements.
Pioneer’s decision to sole source cQuant is driven by the need for a solution that not only meets but exceeds these requirements. cQuant’s suite of products offers unparalleled capabilities in simulating spot and basis prices, optimizing plant dispatch, and forecasting weather and load. Its advanced battery storage optimization and renewable energy valuation tools are particularly valuable in aligning with the CPUC’s mandates and supporting Pioneer’s strategic goals. Most importantly, it is also the only vendor that currently offers the ability to analyze portfolios on an SOD basis, which is something that Pioneer needs for compliance reasons beginning in 2025. cQuant’s SOD model is designed to accurately account for resource adequacy obligations and calculate qualifying capacity from intermittent generation and battery storage resources and contracts according to the official slice of day framework outlined by the CPUC. Other community choice aggregators including AVA Community Energy, Clean Power SF, San Jose Clean Energy have all provided positive references for cQuant as well.
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COMMUNITY ENERGY
Agenda Item: 3 Agenda Date: 7/18/2024
Table 1: Example of SOD Chart Requirement and Portfolio Resources According to Pioneer’s Board-approved Procurement Policy Section VI.3, “[A] sole source may be designated when it is apparent that a needed product or service is uniquely available from the source, or for all practical purposes, it is justifiably in the best interest of Pioneer.” cQuant clearly fits in this category as they provide the critical portfolio optimization services Pioneer needs for CPUC MTR requirements and is currently the only vendor offering SOD analysis for compliance requirements.
cQuant offers unique and market-leading technology that stands out in several key areas:
1. User-Friendly Interface: The cQuant suite of products is highly user-friendly, enabling easier data uploads, downloads, and manipulation. It’s entirely web-based interface allows access from anywhere with internet connectivity. After a comprehensive hands-on workshop, our staff unanimously agreed that cQuant’s interface was the best available, significantly enhancing our operational efficiency.
2. Enhanced Connectivity: cQuant's superior connectivity capabilities allow Pioneer to natively access all raw data, ensuring seamless integration with our existing databases, Application Programming Interfaces (API), spreadsheets, and business intelligence platforms. This level of connectivity is unmatched by other solutions.
3. Modular Design: The modular design of cQuant allows for the efficient running of individual models, which can be linked together to form an analytical chain, significantly increasing the efficiency of commonly run processes.
4. Robust Error Handling: cQuant has an intuitive error handling system that clearly identifies where issues lie when incorrect data is inputted. This feature is critical for reducing downtime and ensuring accuracy, as other systems often fail to provide sufficient guidance for resolving input errors.
The following are the details of the services to be provided:
Agenda Item: 3 Agenda Date: 7/18/2024
• Spot Price Simulation: Simulate hourly and sub-hourly spot prices over a user-defined time horizon by parameterizing a stochastic simulation against historical data along with a liquid traded forward price curve.
• Basis Simulation: Simulate hourly and sub-hourly basis price spreads over a user-defined time horizon by parameterizing a stochastic simulation against spot price simulation outputs. • Plant Dispatch Optimization: Optimize plant dispatch of traditional resources such as natural gas, biomass (a resource Pioneer is advocating for in California), biogas, and geothermal. • Advanced Battery Storage Optimization: Value and optimize storage technology dispatch to simulated power and ancillary services prices while maintaining operational constraints. This is particularly valuable when used with simulated solar dispatch to value solar plus storage contracts.
The California Public Utilities Commission (CPUC) has mandated that all load-serving entities procure additional energy capacity to aid grid reliability and prevent rolling blackouts, making this feature indispensable.
• Weather and Load Forecasting: Forecast hourly or sub-hourly loads over a user-defined time horizon using a stochastic simulation model based on historical data. • ReAssure Renewable Energy Valuation: Compute the fair market value, forecast future energy production, and assess the risk for renewable energy contracts and production facilities. • Net Position at Risk Composite: Generate cash flow at risk (CFaR) and gross margin at risk (GMaR) reports for a portfolio of generation assets and financial positions, or for individual assets. Compute analytical value at risk (VaR) for a portfolio of financial contracts. • Retail Pricing: Add forecasted retail revenue to net position metrics and asset valuation reporting. • Slice of Day (SOD): cQuant’s Slice-of-Day (SOD) model is designed to accurately account for resource adequacy (RA) obligations and calculate qualifying capacity from intermittent generation and battery storage resources and contracts according to the CPUC's official slice-of-day framework. This model ensures that RA benefits for renewable generators and storage assets are computed accurately, reflecting actual compliance requirements. Users can explore their current RA net position for each hourly slice, run scenarios for portfolio modifications, and quantify associated RA benefits, ensuring compliance and optimal resource planning.
To ensure comprehensive coverage across our operations, Pioneer staff will retain three user licenses.
STRATEGIC PLAN
The recommendation supports the Operational Excellence Priority.
FISCAL IMPACT
This contract would have a fiscal impact of up to $197,500 from July 22, 2024, to July 21, 2025.
ATTACHMENTS
1. Resolution Authorizing the Chief Executive Officer to sign an Agreement with cQuant for Portfolio Optimization and Slice-of-Day Compliance Requirements Support in an Amount Not-to-Exceed $197,500.
Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held July 18, 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, Pioneer Community Energy (Pioneer) has placed Portfolio Optimization and Slice-of-Day Compliance Requirements Support as a high priority; WHEREAS, Pioneer has identified a firm with Slice-of-Day (SOD) and optimization algorithms provided by cQuant.IO Inc. (cQuant) that are unique, unparalleled and not provided anywhere else in the market, cQuant’s software is immediately needed for the following reasons:
• Spot Price Simulation: Simulate hourly and sub-hourly spot prices over a user-defined time horizon by parameterizing a stochastic simulation against historical data along with a liquid traded forward price curve.
• Basis Simulation: Simulate hourly and sub-hourly basis price spreads over a user-defined time horizon by parameterizing a stochastic simulation against spot price simulation outputs.
• Plant Dispatch Optimization: Optimize plant dispatch of traditional resources such as natural gas, biomass (a resource Pioneer is advocating for in California), biogas, and geothermal.
In the matter of: A RESOLUTION APPROVING AND
AUTHORIZING THE CHIEF EXECUTIVE OFFICER TO
SIGN AN AGREEMENT WITH CQUANT.IO INC. FOR
PORTFOLIO OPTIMIZATION AND SLICE-OF-DAY
COMPLIANCE REQUIREMENTS SUPPORT IN AN
AMOUNT NOT-TO-EXCEED $197,500
2 • Advanced Battery Storage Optimization: Value and optimize storage technology dispatch to simulated power and ancillary services prices while maintaining operational constraints. This is particularly valuable when used with simulated solar dispatch to value solar plus storage contracts. The California Public Utilities Commission (CPUC) has mandated that all load-serving entities procure additional energy capacity to aid grid reliability and prevent rolling blackouts, making this feature indispensable. • Weather and Load Forecasting: Forecast hourly or sub-hourly loads over a user-defined time horizon using a stochastic simulation model based on historical data. • ReAssure Renewable Energy Valuation: Compute the fair market value, forecast future energy production, and assess the risk for renewable energy contracts and production facilities.
• Net Position at Risk Composite: Generate cash flow at risk (CFaR) and gross margin at risk (GMaR) reports for a portfolio of generation assets and financial positions, or for individual assets. Compute analytical value at risk (VaR) for a portfolio of financial contracts.
• Retail Pricing: Add forecasted retail revenue to net position metrics and asset valuation reporting.
• Slice of Day (SOD): cQuant’s Slice-of-Day (SOD) model is designed to accurately account for resource adequacy (RA) obligations and calculate qualifying capacity from intermittent generation and battery storage resources and contracts according to the CPUC's official slice-of-day framework. This model ensures that RA benefits for renewable generators and storage assets are computed accurately, reflecting actual compliance requirements. Users can explore their current RA net position for each hourly slice, run scenarios for portfolio modifications, and quantify associated RA benefits, ensuring compliance and optimal resource planning.
WHEREAS, According to Pioneer’s Board-approved Procurement Policy Section VI.3, “[A] sole source may be designated when it is apparent that a needed product or service is uniquely available from the source, or for all practical purposes, it is justifiably in the best interest of Pioneer” and cQuant clearly fits in this category.
BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:
1. The above recitals are true and correct.
2. The Governing Board hereby approves and authorizes the Executive Director to execute an agreement with cQuant for portfolio and Slice-of-Day optimization services, in substantially the form attached, for one year (automatic 1 year renewal thereafter) from the date of “go-live” with any minor clerical or clarifying changes proposed by the Chief Executive Officer and approved by Special Counsel.
3. This Resolution shall take effect immediately upon its adoption.
Exhibit A: Contract with cQuant for Portfolio Optimization Services Resolution 2024-___
July 18, 2024
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CONSULTANT SERVICES AGREEMENT
THIS AGREEMENT is made at Rocklin, California, as of July 22, 2024, by and between Pioneer Community Energy, ("Pioneer"), and cQuant.IO Inc. (“cQuant”) ("Consultant"), who agree as follows:
1. Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide the services described in Exhibit A. Consultant shall provide said services at the time, place, and in the manner specified in Exhibit A.
2. Payment. Pioneer shall pay Consultant for services rendered pursuant to this Agreement at the time and in the amount set forth in Exhibit B. The payments specified in Exhibit B shall be the only payments made to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all billings for said services to Pioneer in the manner specified therein. As discussed in Exhibit B, the amount of this contract shall not exceed One Hundred Ninety Seven Thousand Five Hundred Dollars ($197,500) per year. The ($197,500) per year consisting of $157,500 base fee and a one-time implementation cost of $40,000.
3. Facilities, Equipment and Other Materials, and Obligations of Pioneer. Unless otherwise specified in Exhibit C, Consultant shall, at its sole cost and expense, furnish all facilities, equipment, and other materials which may be required for furnishing services pursuant to this Agreement.
4. Exhibits. All exhibits referred to herein will be attached hereto and by this reference incorporated herein.
5. Time for Performance. Time is of the essence. Failure of Consultant to perform any services within the time limits set forth in Exhibit A shall constitute material breach of this Agreement.
6. Independent Consultant. At all times during the term of this Agreement, Consultant shall be an independent Consultant and shall not be an employee of Pioneer. Pioneer shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement. Pioneer shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement.
7. Licenses, Permits, Etc. Consultant represents and warrants to Pioneer that it has all licenses, permits, qualifications, and approvals of whatsoever nature, which are legally required for Consultant to practice its profession. Consultant represents and warrants to Pioneer that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, and approvals which are legally required for Consultant to practice its profession at the time the services are performed.
8. Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for the satisfactory performance of Consultant's obligations pursuant to this Agreement. Neither party shall be considered in default of this Agreement to the extent performance is prevented or delayed by any cause, present or future, which is beyond the reasonable control of the party.
9. Hold Harmless and Indemnification Agreement. At all times during the performance of this agreement, Consultant agrees to protect, defend, and indemnify Pioneer in accordance with the provisions contained in Article 9 of Exhibit A.
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10. Insurance. Consultant shall file with Pioneer concurrently herewith a Certificate of Insurance, in companies acceptable to Pioneer, with a Best's Rating of no less than A-:VII, for the coverage shown in Exhibit D. All costs of complying with these insurance requirements shall be included in Consultant’s fee(s). These costs shall not be considered a “reimbursable” expense under any circumstances.
11. Consultant Not Agent. Except as Pioneer may specify in writing Consultant shall have no authority, express or implied, to act on behalf of Pioneer in any capacity whatsoever as an agent.
Consultant shall have no authority, express or implied pursuant to this Agreement to Bind Pioneer to any obligation whatsoever.
12. Assignment Prohibited. Consultant may assign its rights and obligations under this Agreement only upon the prior written approval of Pioneer, said approval to be in the sole discretion of Pioneer.
13. Personnel.
A. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that Pioneer, in its sole discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by Consultant to perform services pursuant to this Agreement, including those members of the Project Team as explained below, Consultant shall remove any such person immediately upon receiving notice from Pioneer of the desire of Pioneer for removal of such person or persons.
B. Notwithstanding the foregoing, if specific persons are designated as the “Project Team” in Exhibit A, Consultant agrees to perform the work under this Agreement with those individuals identified. Reassignment or substitution of individuals or subcontractors named in the Project Team by Consultant without the prior written consent of Pioneer shall be grounds for cancellation of the Agreement by Pioneer, and payment shall be made pursuant to Section 15 (Termination) of this Agreement only for that work performed by Project Team members.
14. Standard of Performance. Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession. All products of whatsoever nature which Consultant delivers to Pioneer pursuant to this Agreement shall be prepared in a substantial first class and workmanlike manner and conform to the standards or quality normally observed by a person practicing in Consultant's profession.
15. Termination.
A. Pioneer shall have the right to terminate this Agreement at any time by giving notice in writing of such termination to Consultant. In the event Pioneer shall give notice of termination, Consultant shall immediately cease rendering service upon receipt of such written notice, pursuant to this Agreement. In the event Pioneer shall terminate this Agreement:
1) Consultant shall deliver copies of all writings prepared by it pursuant to this Agreement to Pioneer. The term "writings" shall be construed to mean and includes: handwriting, typewriting, printing, Photostatting, photographing, and every other means of recording upon any tangible thing any form of communication or representation, including letters, words, pictures, sounds, or symbols, or combinations thereof. 2) Pioneer shall have full ownership and control of all such writings delivered by Consultant pursuant to this Agreement.
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3) Pioneer shall pay Consultant the reasonable value of services rendered by Consultant to the date of termination pursuant to this Agreement not to exceed the amount documented by Consultant and approved by Pioneer as work accomplished to date; provided, however, that in no event shall any payment hereunder exceed the amount of the Agreement specified in Exhibit B, and further provided, however, Pioneer shall not in any manner be liable for lost profits which might have been made by Consultant had Consultant completed the services required by this Agreement. In this regard, Consultant shall furnish to Pioneer such financial information as in the judgment of Pioneer is necessary to determine the reasonable value of the services rendered by Consultant. The foregoing is cumulative and does not affect any right or remedy, which Pioneer may have in law or equity.
B. Consultant may terminate its services under this Agreement upon thirty- (30) working days’ advance written notice to Pioneer.
16. Contract Term. This agreement shall remain in place until terminated pursuant to Section 15 of this Agreement.
17. Non-Discrimination. Consultant shall not discriminate in its employment practices because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, gender, age, or sexual orientation, gender identity, gender expression or veteran status in contravention of the California Fair Employment and Housing Act, Government Code section 12900 et seq. Consultant shall not discriminate, harass or retaliate against Pioneer, its appointed officials, officers, employees, agents, servants, volunteers, those Pioneer agents serving as independent contractors in the role of Pioneer officials, consultants, contractors, subcontractors, or subconsultants, on nay basis prohibited by law.
18. Records. Consultant shall maintain, at all times, complete detailed records with regard to work performed under this Agreement in a form acceptable to Pioneer, and Pioneer shall have the right to inspect such records at any reasonable time. Notwithstanding any other terms of this Agreement, no payments shall be made to Consultant until Pioneer is satisfied that work of such value has been rendered pursuant to this agreement. However, Pioneer shall not unreasonably withhold payment and, if a dispute exists, the withheld payment shall be proportional only to the item in dispute.
19. Ownership of Information. All professional and technical information developed under this Agreement and all work sheets, reports, and related data shall become the property of Pioneer, and Consultant agrees to deliver reproducible copies of such documents to Pioneer on completion of the services hereunder. Pioneer agrees to indemnify and hold Consultant harmless from any claim arising out of reuse of the information by Pioneer for other than this project.
20. Waiver. One or more waivers by one party of any major or minor breach or default of any provision, term, condition, or covenant of this Agreement shall not operate as a waiver of any subsequent breach or default by the other party.
21. Conflict of Interest. Consultant certifies that no official or employee of Pioneer, nor any business entity in which an official of Pioneer has an interest, has been employed or retained to solicit or aid in the procuring of this Agreement. In addition, Consultant agrees that no such person will be employed in the performance of this Agreement without immediately notifying Pioneer.
22. Entirety of Agreement. This Agreement contains the entire agreement of Pioneer and Consultant with respect to the subject matter hereof, and no other agreement, statement, or promise made by any party, or to any employee, officer or agent of any party, which is not contained in this Agreement, shall be binding or valid.
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23. Alteration. No waiver, alteration, modification, or termination of this Agreement shall be valid unless made in writing and signed by all parties, except as expressly provided in Section 15, Termination.
24. Governing Law. This Agreement is executed and intended to be performed in the State of California, and the laws of that State shall govern its interpretation and effect. Any legal proceedings on this agreement shall be brought under the jurisdiction of the Superior Court of County of Placer, State of California, and Consultant hereby expressly waives those provisions in California Code of Civil Procedure §394 that may have allowed it to transfer venue to another jurisdiction.
25. Notification. Any notice or demand desired or required to be given hereunder shall be in writing and deemed given when personally delivered or deposited in the mail, postage prepaid, and addressed to the parties as follows:
PIONEER COMMUNITY ENERGY: CONSULTANT:
Pioneer Community Energy cQuant.IO, Inc.
Attn: Eric Acedo Attn: David Leevan, CEO
2510 Warren Drive, Suite B Address: 357 South McCaslin Blvd., Suite 200 Louisville, CO 80027
Rocklin, CA 95677
[email protected] Email: [email protected] Phone: 916-758-8943 Phone: 303-916-1031
Any notice so delivered personally shall be deemed to be received on the date of delivery, and any notice mailed shall be deemed to be received five (5) days after the date on which it was mailed.
26. Corporate Authority. The person executing this Agreement on behalf of Consultant warrants the he or she is duly authorized to execute this Agreement on behalf of said party and that by his or her execution, the Consultant is formally bound to the provisions of this Agreement.
27. Conflicts. In the event that conflicting terms arise throughout this agreement, Exhibit A shall take precedence and prevail over any other terms.
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IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed this Agreement as of the date and year first above written.
PIONEER COMMUNITY ENERGY
By: _____________________________
Printed Name/Title: Don Eckert, Chief Executive Officer Approved as to Form – Special Counsel:
By: _____________________________
Printed Name/Title: Patrick Enright, Special Counsel
CONSULTANT
By: _____________________________
Printed Name/Title: David Leevan, Chief Executive Officer
*If Consultant is a corporation, this agreement must be signed by two corporate officers, one of which must be the secretary of the corporation, and the other may be either the President or Vice President, unless an authenticated corporate resolution is attached delegating authority to a single officer or other officers to bind the corporation.
Exhibits
A. Scope of Services
B. Payment for Services Rendered
C. Facilities, Equipment and Other Obligations of Pioneer D. Hold Harmless Agreement and Insurance Requirements
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EXHIBIT A
SCOPE OF SERVICES
Terms and Conditions
cQuant.IO
Terms and Conditions
These Standard Terms and Conditions (“Terms and Conditions”) apply to, and are incorporated by reference into, an order form (“Order Form”) that has been signed by cQuant.IO, Inc. (“cQuant”) and the cQuant customer identified in the Order Form (“Customer”). The signed Order Form, together with these Terms and Conditions, state the terms of a binding contract (this “Service Contract”) under which cQuant shall provide, and Customer shall purchase and pay for, the services described in the Order Form (the “Services”).
ARTICLE 1: Introductory Provisions
Services may consist of the following:
a. access to the hosted cQuant Analytics Platform (“Hosted Analytics Services”), which enable Customers to access and use a variety of models, including econometric, statistical, mathematical, problem solving, and logistical models (each a “Model”), that are hosted by or on behalf of cQuant in a proprietary web application; and
b. professional services (“Professional Services”), which are custom software development services or data-related services that have been negotiated by cQuant and Customer and have been specified in an Order Form.
ARTICLE 2: Definitions
The definitions stated in this Article will apply throughout this Service Contract. Other definitions are stated elsewhere in this Service Contract.
“Content” means, without limitation, any and all information, data, results, ideas, plans, sketches, texts, files, links, images, photos, video, sound, inventions (whether or not patentable), notes, works of authorship, articles, feedback, or other materials. Models are not included in “Content”. “cQuant Technology” means: (a) Intellectual Property contained in or otherwise related to one or more Models, to any Hosted Analytics Services, or to any other information or materials provided by cQuant to Customer; (b) Intellectual Property and proprietary technology owned by cQuant or its suppliers before the Effective Date; and (c) cQuant Work Product. For clarity, cQuant Technology does not include Customer Data.
“cQuant Work Product” means all work product, including Models (but excluding Customer Data incorporated into any Models), and all Intellectual Property embodied therein, that was created or developed by cQuant, alone or in concert with others, in the course of performing Professional Services.
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“Customer Data” means any Content provided for, imported into, or uploaded to the Site by Customer or on Customer’s behalf, and any information, data, or other materials generated from the Site based on such Content, in the course of Customer’s proper use of Hosted Analytics Services. Nothing herein grants or transfers title or ownership of any of Customer’s Data from Customer to cQuant. “Customer Work Product” means all work product, and the Intellectual Property therein, that was created or developed solely by Customer, including such work product that was created or developed by using Hosted Analytics Services.
“Documentation” means all specifications, user manuals, and other technical materials relating to the Services.
“Effective Date” of this Service Contract means the date on which the Order Form has been signed by cQuant and Customer.
“Intellectual Property” means any and all now known or hereafter existing (a) rights associated with works of authorship, including copyrights, mask work rights, and moral rights; (b) patents, patent applications, invention disclosures, and industrial property rights; (c) trade secrets and know-how; (d) trademarks, tradenames, service marks, domain names, and URLs; (e) trade dress, industrial design rights, and other design rights; (f) all other items commonly regarded as intellectual property anywhere in the world; (g) all registrations, applications, renewals, extensions, or reissues of any of the foregoing; and (h) all rights in, to, or under any of the foregoing arising under a license, lease, or other legal instrument. Nothing herein grants or transfer title or ownership to either party’s Intellectual Property rights to the party.
“License Term”, for a Hosted Analytics Services specified in the Order Form, if any, means the period during which a specified number of Users are permitted and licensed to use that Hosted Analytics Services. The License Term for any Hosted Analytics Services is stated in the Order Form. “Order Form” means the form for the initial subscription for the Service and any subsequent order forms submitted and accepted online or in written form and specifying among other things, the number of Users, the Models licensed, the applicable fees, the billing period, and other changes as agreed to between the parties, each of which becomes incorporated into and a part of these Terms. “Person”, whether or not capitalized, means any natural person and any corporation, limited liability company, government or governmental agency, or other legal entity. “Site” means the cQuant website through which Hosted Analytics Services are provided. “Third Party” means any person other than cQuant or Customer. “User” is a person authorized in accordance with this Service Contract to access, use, and execute Hosted Analytics Services.
ARTICLE 3: Hosted Analytics Services
3.1 License Grant. Subject to the terms and conditions of this Agreement, cQuant hereby grants to Customer a non-exclusive, non-transferable, non-sublicensable license (the “License”), which (a) permits Customer and Users to access, use, and execute the Hosted Analytics Services specified in the Order
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Form, and (b) is subject in all respects to the limitations stated in Section 3.2 and all other provisions of this Service Contract.
3.2 Limitations on the License
All rights not expressly granted to Customer are reserved to cQuant. Except as expressly stated to the contrary in this Service Contract, no express or implied license or right of any kind is granted to Customer regarding any Hosted Analytics Services, cQuant Technology, or any part of the foregoing, including the right to obtain possession of any source code, data, or Documentation relating to cQuant Technology. The Parties disclaim the existence or granting of any implied licenses.
The License permits access to and use of the Hosted Analytics Services ordered by Customer (i) only during the License Term, and (ii) only for Customer’s internal business purposes. Any other access or use is prohibited. Without limiting the generality of the foregoing, Customer may use, reproduce, distribute, create derivative works of, perform, display, or execute a Model solely in the course of Customer using the Hosted Analytics Services over the Internet, in the manner in which it was intended to be used, and not otherwise.
Customer will not remove any copyright or other proprietary notice applicable to any Model or Hosted Analytics Services. Nothing in this Service Contract restricts Customer’s use, distribution, or creation of derivative works with respect to any Customer Data.
3.3 Other Prohibited Acts. Customer shall not: (a) permit or suffer any person to access or use Hosted Analytics Services ordered by Customer, other than the specific Users for whom Customer has paid a fee and has received unique login credentials; (b) rent, lease, loan, or sell access to Hosted Analytics Services to any third party; (c) interfere with, disrupt, alter, translate, or modify any Hosted Analytics Services or any part thereof; (d) reverse engineer or access any Hosted Analytics Services in order to (i) build a competitive product or service, (ii) build a product using similar ideas, features, functions, or graphics of any Hosted Analytics Services; or (iii) copy any of the ideas, features, functions, or graphics embodied in any Hosted Analytics Services; (e) without cQuant’s express written permission, introduce software or automated agents or scripts to any Hosted Analytics Services so as (A) to produce multiple accounts, generate automated searches, requests, and queries, or (B) to strip or mine data from any Hosted Analytics Services; (f) perform or publish any performance or benchmark tests or analyses relating to any Hosted Analytics Services or the use thereof; or (g) cover or obscure any page or part of any Hosted Analytics Services via HTML/CSS, scripting, or any other means, if any.
3.4 Usernames and Passwords. cQuant shall furnish to each User (or shall allow each User to specify) a unique username and password to enable such User to access any Hosted Analytics Services specified in the Order Form. Customer will ensure that each username and password will be used only by the specific, named User to whom it was issued, i.e., this is not a software license of the type commonly referred to as a “concurrent use license”. Customer is responsible for maintaining the confidentiality of all Users’ usernames and passwords, and is solely responsible for all activities that occur under those usernames. Customer agrees (a) not to allow a third party to use Customer’s account, usernames or passwords at any time; and (b) to notify cQuant promptly of any actual or suspected (i) unauthorized use of Customer’s account, usernames or passwords, or (ii) other breach or suspected breach of this Service Contract. cQuant reserves the right to terminate any username and password, which cQuant reasonably determines may have been used by an unauthorized third party. A User license may not be
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shared or used by more than one User. Customer, upon notification to cQuant, may reassign a particular User’s rights with regard to the Hosted Analytics Services specified in the Order Form, if that User no longer requires access to the Hosted Analytics Services specified in the Order Form, e.g., because he or she has been reassigned to a different position within Customer’s organization or because his or her employment with Customer has terminated; such reassignment must include all the rights of the User in question.
3.5 Not a Sale. This is not an agreement of purchase or sale; computer software and other cQuant Technology involved in the provision of Hosted Analytics Services is not offered for sale to cQuant customers in the ordinary course of cQuant’s business.
ARTICLE 4. Intellectual Property
4.1 cQuant Technology. cQuant Technology, which term includes cQuant Work Product, is the exclusive property of cQuant or its suppliers. Customer shall assign and hereby does assign, convey, and quitclaim unto cQuant all Customer’s right, title, and interest in, to, and under cQuant Technology. Customer hereby assigns to cQuant any suggestions, ideas, enhancement requests, feedback, and recommendations, and all other Content provided by Customer, related to any Models, Hosted Analytics Services, or other cQuant Technology, except for Customer Data.
4.2 Customer Work Product. Customer Work Product is the sole and exclusive property of Customer.
4.3 Commingling of Work Product. The incorporation of any Customer Work Product into cQuant Work Product will not affect the ownership of such Customer Work Product or the cQuant Work Product.
4.4 Assistance in Perfecting Rights. Customer will perform all acts that are reasonably necessary or desirable to permit and assist cQuant in obtaining, perfecting, and enforcing cQuant’s rights and benefits in, to, and under Intellectual Property embodied in cQuant Technology. If cQuant is unable for any reason to secure the signature of Customer or any of Customer’s employees or contractors on any document necessary or desirable in connection with the filing, prosecution, registration, or memorialization of cQuant’s rights in any cQuant Technology, Customer hereby irrevocably designates and appoints cQuant and cQuant’s duly authorized officers and agents as Customer’s agents and attorneys-in-fact to do so in the name, place, and stead of Customer, all with the same legal force and effect as if the document or instrument in question were executed by Customer. The foregoing is deemed a power coupled with an interest and is irrevocable.
ARTICLE 5. Professional Services
5.1 Fees and Expense Reimbursement. cQuant’s fees and other charges for Professional Services will be as stated in the applicable Order Form. Unless otherwise stated in an Order Form, Customer will reimburse cQuant for all reasonable out-of-pocket expenses actually incurred by cQuant in performing Professional Services. cQuant will seek Customer approval before incurring reimbursable expenses. cQuant is solely responsible for, and must maintain adequate records of, expenses incurred in the course of performing Professional Services.
5.2 Work Orders. Each Order Form for Professional Services will contain, as an attachment, a full description of the Professional Services to be rendered by cQuant thereunder, which attachment is referred to in this Service Contract as a “Work Order”. Each Work Order will be deemed an integral part
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of the Order Form to which it is attached. Work Orders will include all material information regarding the Professional Services project, including, but not limited to: a reasonably detailed description of the Professional Services to be rendered; the price or compensation to be paid by Customer for the Professional Services, itemized in reasonable detail; any applicable deadlines, milestones, or special requirements; and any other material terms negotiated by the Parties.
5.3 Independent Contractor. With respect to the provision of Professional Services, cQuant is an independent contractor of Customer. Nothing in this Service Contract or any Order Form creates a partnership, agency, joint venture, employment, or similar relationship. cQuant will not be entitled to any of the benefits that Customer may make available to its employees, including, but not limited to, group health or life insurance, profit-sharing, or retirement benefits. cQuant is not authorized to make any representation, contract, or commitment on behalf of Customer unless specifically requested or authorized in writing to do so by a Customer manager.
ARTICLE 6. Customer Data
6.1 Customer’s Data Warranty. Customer represents and warrants that the use of Customer Data by Customer or cQuant will not violate the Intellectual Property, contractual, or other rights of any third party and will not contain any virus, worm or other malicious computer programming code capable of damaging any Hosted Analytics Services or the systems that provide the same (“Customer’s Data Warranty”).
6.2 Systems Use and Security. cQuant shall provide reasonable logical and physical security for Customer Data, which will include, but will not be limited to: (a) a defined security administration practice and process including account and password administration; and (b) ensuring that only cQuant employees and contractors who need to access Customer Data for cQuant to provide Hosted Analytics Services will have such access. cQuant may modify its security systems and procedures from time to time, in its discretion. Notwithstanding the foregoing provisions of this paragraph, cQuant may delegate and or all its obligations under this Section 6.2 to a reputable professional hosting provider, and cQuant will deemed released from performing any of the obligations so delegated.
6.3 Data Loss. cQuant endeavors to employ best industry practices, including backing up Customer Data, to avoid loss, corruption, or destruction of Customer Data (“Data Loss”). Customer shall archive, keep, and maintain a current copy of all Customer Data, at Customer’s sole cost and expense. If a Data Loss occurs because of cQuant’s negligence or greater fault, cQuant will engage a professional data recovery expert or firm, at cQuant’s expense, in an effort to recover the Customer Data; provided, however, that cQuant will not be required to expend more than $10,000 in such recovery efforts for any single Data Loss or series of related Data Losses. If a Data Loss occurs as the result of any cause other than cQuant’s negligence or greater fault, and Customer requests cQuant to perform recovery services with respect to that Data Loss: (a) Customer shall pay cQuant for such recovery services at cQuant’s then-current time and materials rates, regardless of whether cQuant’s recovery services are successful; and (b) cQuant’s recovery services will be without warranty of any kind. Except as expressly stated above in this paragraph, cQuant will incur no liability or obligation as a result of any Data Loss, regardless of whether the Data Loss results from the negligence or greater fault of cQuant.
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6.4 Access to Customer Data On Termination
Except as provided in subsection “(b)”, if Customer’s access to or subscription for Hosted Analytics Services is terminated, and if Customer requests an electronic copy of its Customer Data in writing within 30 days after such termination, cQuant shall comply with the request. cQuant may delete permanently all Customer Data at any time more than 30 days after Customer’s access to or subscription for Hosted Analytics Services is terminated, regardless of the circumstances of termination. cQuant may suspend Customer’s access to Customer Data throughout any period during which Customer is delinquent in paying any amount owing to cQuant for Hosted Analytics Services. If Customer remains delinquent for 10 days or more after receiving written notice of the delinquency from cQuant, cQuant in its discretion may delete all Customer Data and will not be required to retain or provide a copy of the Customer Data so deleted.
6.5 cQuant’s Collection and Use of Customer Data and Usage Data. cQuant will not disclose Customer Data to any third party except in anonymized and aggregated form and will not knowingly and intentionally use Customer Data for any purpose other than rendering Services to Customer. cQuant collects data regarding the usage of Hosted Analytics Services; the usage data so collected may include, without limitation, data set sizes, Model run-times, and frequency of Model runs. Customer hereby grants cQuant permission to disclose such usage data to third parties in anonymized and aggregated form.
6.6 Customer Logos. Customer hereby grants cQuant a non-exclusive, worldwide, royalty-free, and fully-paid license to display Customer’s logos, so long as no representation is made expressly or impliedly that Customer endorses cQuant or its products or services.
ARTICLE 7. Payment
7.1 Charges. Customer shall pay all fees to Customer’s account in accordance with the billing terms in effect at the time a fee is due and payable. Unless mutually agreed otherwise, payments must be made in advance. All payment obligations are non-cancelable, and all amounts paid or prepaid are nonrefundable. cQuant may require a valid credit card as a condition to signing up for a Hosted Analytics Services. An individual who is authorized to act as license administrator on behalf of Customer (“License Administrator”) may add license rights by executing an additional or supplemental Order Form and paying the applicable fees. cQuant reserves the right to modify its fees and charges and to introduce new charges at any time, upon 30 days’ prior notice to Customer, which notice may be provided by email, except that cQuant may not modify the fees applicable to any period for which Customer has prepaid with cQuant’s consent.
7.2 Billing
cQuant charges and collects in advance for Hosted Analytics Services. Professional Services will be billed as stated in the applicable Order Form or Work Order.
Any amounts not paid to cQuant when due will bear interest at the lesser of 1.5% per month or the maximum legal rate. Upon thirty (30) days written notice of any outstanding amount and cQuant intention to withhold performance and discontinue service to Customer, cQuant may suspend its
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performance and discontinue all services to Customer, including Services under this Service Contract and other services, until Customer’s account is brought current.
Customer shall provide cQuant with complete and accurate billing and contact information. This information includes Customer’s legal company name, street address, email address, and the name and telephone number of an authorized billing contact and License Administrator. Customer shall update its billing and contact information within 30 days after any change occurs. Customer’s furnishing of false billing or contact information constitutes grounds for cQuant’s termination of Services.
7.3 Taxes
cQuant’s fees are exclusive of all taxes, levies, or duties imposed by taxing authorities, and Customer shall be responsible for the payment of all such taxes, levies, or duties, excluding only United States taxes based solely on cQuant’s income.
No part of cQuant’s compensation will be subject to withholding by Customer for the payment of any taxes, including, without limitation, social security, federal, state, local, and payroll. Customer will regularly report all payments made to cQuant to the appropriate federal, state, and local agencies, if and as required by law.
cQuant is solely responsible for filing all tax returns and making all tax payments required in connection with the performance of Services.
ARTICLE 8. cQuant’s Warranties and Disclaimers
8.1 cQuant’s Limited Warranties, including Uptime Warranty. Subject to the disclaimers, limitations, and restrictions stated in this Service Contract, cQuant provides the following limited warranties: (a) that cQuant will provide Hosted Analytics Services in a manner consistent with general industry standards applicable to technical subscription services similar to the Hosted Analytics Services; and that the Hosted Analytics Services will materially conform to cQuant’s then-current Documentation when used under normal circumstances and in accordance with cQuant’s recommendations; (b) cQuant will perform Professional Services in a good and workmanlike manner; and (c) that Customer’s use of any cQuant Work Product or Hosted Analytics Services in a manner expressly authorized by cQuant in this Service Contract will not infringe the Intellectual Property rights of any third party (the limited warranty stated in subsection “(c)” being the “Noninfringement Warranty”). In addition to the warranties stated above in this paragraph, with respect to Hosted Analytics Services, cQuant provides the Uptime Warranty, as defined in cQuant’s standard Service Level Agreement, set forth below..
If Customer notices cQuant of a breach of the warranty in Section 8.1(a) or (b), cQuant will re-perform the nonconforming Service; if the nonconforming Service cannot be brought into compliance with the Limited Warranty to the mutual satisfaction of the parties after reasonable efforts, cQuant at its option may terminate the Agreement in whole or in part and refund fees paid with respect to the terminated portion for the remainder of the Term
8.2 Disclaimers. The limited warranties stated in Section 8.1 (collectively, “cQuant’s Limited Warranties”) are the sole and exclusive warranties made with respect to any Services and are made to Customer only; no other person may assert a claim for the breach of any of cQuant’s Limited Warranties. EXCEPT FOR CQUANT’S LIMITED WARRANTIES, THE SERVICES ARE PROVIDED “AS-IS” AND
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WITHOUT ANY WARRANTY WHATSOEVER. CQUANT DISCLAIMS ALL OTHER WARRANTIES, WHETHER
WRITTEN, ORAL, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, WITHOUT LIMITATION, THE IMPLIED
WARRANTIES OF MERCHANTABILITY, TITLE, NONINFRINGEMENT, AND FITNESS FOR A PARTICULAR PURPOSE. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING: CQUANT DOES NOT WARRANT THAT ANY SERVICE, INCLUDING ANY MODELS, WILL BE ERROR-FREE; AND EXCEPT AS EXPRESSLY
STATED IN THE UPTIME WARRANTY, CQUANT DOES NOT WARRANT THAT ANY HOSTED ANALYTICS SERVICES WILL BE CONTINUOUS OR UNINTERRUPTED. ALL SERVICES MAY BE SUBJECT TO
LIMITATIONS, DELAYS, AND OTHER PROBLEMS INHERENT IN THE USE OF THE INTERNET AND ELECTRONIC COMMUNICATIONS. CQUANT IS NOT RESPONSIBLE FOR, AND CQUANT’S LIMITED
WARRANTIES DO NOT COVER, ANY DELAYS, DELIVERY FAILURES, OR OTHER DAMAGES RESULTING FROM SUCH PROBLEMS.
ARTICLE 9. Indemnification
9.1 cQuant agrees, at its sole cost and expense, to indemnify, defend with counsel reasonably approved by Customer, and protect and hold harmless Customer, its officers, directors, employees, agents, attorneys, designated volunteers, successors and assigns, and those Customer agents serving as independent contractors in the role of Customer staff (collectively “Customer Indemnitees”) from and against any and all liabilities, damages, losses, judgments, fines, and expenses, including reasonable attorneys’ fees and costs, resulting from or incurred as a result of any action, suit, proceeding, or claim brought or made by a third party (a “Third-Party Claim”) arising out of or related to cQuant’s breach of this Agreement. Consultant agrees that its indemnity and defense obligations include all costs and expenses, including all attorney fees, expert fees, mediation, arbitration, or court costs in connection with the defense.
9.2 If a Third-Party Claim asserts or involves an allegation that cQuant violated the Noninfringement Warranty and the Software subject to the Third-Party Claim (the “Infringing Materials”) is held, or in cQuant’s opinion is reasonably likely to be held, by a court of competent jurisdiction to violate, infringe, or misappropriate a third party’s Intellectual Property rights, cQuant shall (in addition to providing indemnification under Section 9.2), at its sole option and expense, (a) procure for Customer the right to continue using the Infringing Materials; (b) replace or modify the Infringing Materials so that they become non-infringing (such modification or replacement shall be materially similar to the original); or, (c) if neither (a) nor (b) is practicable in cQuant’s sole discretion, terminate the Agreement and refund to Customer the fees paid with respect to the Infringing Materials (less the value that Customer received from the Infringing Materials prior to termination). This Section 9.2 is Customer’s exclusive remedy, and cQuant’s sole obligation, in the event of a breach of the Noninfringement Warranty.
9.3 cQuant shall have no obligation under Sections 9.1 and 9.2 to the extent that a Third-Party Claim arises out of or relates to: (a) Customer’s breach of the Agreement;(b) Customer’s breach of any other agreement to which it is subject, including license terms applicable to third-party software;(c) alteration of any Software or other materials provided by cQuant by any person other than cQuant; or (d) the combination of any portion of the Software or other materials provided by cQuant with any services, products, or other materials not provided by cQuant (unless expressly authorized in the Documentation).
9.4 The cQuant’s obligations under this Section 9 apply regardless of the existence or amount of insurance the cQuant carries or has made available to Customer.
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9.5 The Parties agree that this Section 9 survives the expiration or earlier termination of the Agreement.
9.6 By Customer. Customer will indemnify, defend, and hold harmless cQuant from and against any Third-Party Claim asserted against cQuant alleging facts that, if true, establish that (a) Customer used the Services in an unlawful, improper, or unauthorized manner; or (b) breached the Customer’s Data Warranty stated in Section 6.1.
9.7 Procedure. Each indemnifying party’s obligations as set forth above, with respect to any particular Claim, are conditioned upon each of the following: (a) the indemnified party shall promptly notify the indemnifying party in writing of the Claim; (b) the indemnifying party shall have sole control of the defense or settlement of the Claim; and (c) the indemnified party shall cooperate with the indemnifying party to facilitate the settlement or defense of the Claim; provided, however, that an indemnified party’s failure to notify an indemnifying party of a Claim promptly shall not relieve the indemnifying party of its indemnification obligations except to the extent that such failure caused actual prejudice or damage to the indemnifying party. An indemnifying party’s obligations under this Article include, without limitation, the payment of all damages, costs, and attorneys’ and experts’ fees, whether incurred in satisfaction of a judgment or in settlement; provided, however, that an indemnifying party will not be required to indemnify for any amount paid in settlement unless the settlement disposes of all Claims against the indemnifying party.
ARTICLE 10. Limitations on Damages
10.1 EXCLUSION OF CERTAIN TYPES OF DAMAGES. TO THE EXTENT PERMITTED UNDER APPLICABLE
LAW, IN NO EVENT SHALL CQUANT, OR ITS SUPPLIERS OR LICENSORS, BE LIABLE TO CUSTOMER FOR
ANY INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL, OR PUNITIVE OR EXEMPLARY DAMAGES,
INCLUDING DAMAGES FOR LOST PROFITS, DATA LOSS, LOSS OF USE, DIMINISHED GOODWILL OR REPUTATION, OR REPLACEMENT. IN NO EVENT WILL CQUANT BE LIABLE FOR THE COST OF PROCURING OR USING SUBSTITUTE PRODUCTS OR SERVICES, I.E., “COVER”. TO THE EXTENT
PERMITTED UNDER APPLICABLE LAW, CQUANT WILL NOT BE LIABLE FOR PERSONAL INJURY, BODILY
INJURY, OR PROPERTY DAMAGE RESULTING FROM THE PROVISION, PERFORMANCE, USE, INABILITY TO USE, OR MISUSE OF THE SERVICES. THE LIMITATIONS STATED ABOVE IN THIS PARAGRAPH APPLY
REGARDLESS OF THE CAUSE OF ACTION OR THE THEORY OF LIABILITY, WHETHER IN TORT, CONTRACT, OR OTHERWISE, EVEN IF CQUANT HAS BEEN NOTIFIED OF THE LIKELIHOOD OF SUCH DAMAGES.
10.2 CUSTOMER’S ASSUMPTION OF RISK. CUSTOMER ASSUMES ALL RISK OF DAMAGE, EXPENSE, OR LOSS RESULTING FROM ITS USE OF THE SERVICES. WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, CQUANT WILL NOT BE LIABLE UNDER ANY THEORY FOR DAMAGES, EXPENSES, OR LOSSES INCURRED OR SUSTAINED AS A RESULT OF ITS USE OF OR RELIANCE ON THE SERVICES, E.G., TRADING OR HEDGING LOSSES.
10.3 Certain Person Not Liable. In addition to the limitations stated elsewhere in this Article, in no event shall cQuant’s suppliers have any liability arising out of or in connection with any Service.
10.4 LIMITATION AS TO AMOUNT OF DAMAGES. THE MAXIMUM LIABILITY OF CQUANT OR ANY OF ITS
SUPPLIERS OR LICENSORS ARISING OUT OF OR IN CONNECTION WITH ANY SERVICES MAY NOT EXCEED THE FEES PAID BY CUSTOMER TO CQUANT FOR ANY SERVICES DURING THE 12 MONTHS IMMEDIATELY
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PRECEDING THE DATE ON WHICH THE CLAIM AROSE. THE EXISTENCE OF MULTIPLE CLAIMS WILL NOT INCREASE THE AFOREMENTIONED LIABILITY LIMIT.
10.5 Basis of the Bargain. The limitations and exclusions stated in this Article will survive and continue in full force and effect despite any failure of consideration or failure of an exclusive remedy. Both parties acknowledge that this Service Contract has been entered into in reliance upon these limitations of liability, which form an essential basis of the bargain between the parties.
ARTICLE 11. Confidentiality
11.1 Definition of Customer Confidential Information. “Customer Confidential Information” means (a) all technical and non-technical information related to the Customer’s business or its current, future, and proposed products or services, including trade secrets, financial results, and plans, marketing plans, and customer and vendor data; and (b) any information that Customer has received from others and is obligated by contract or otherwise by law to treat as confidential or proprietary. Notwithstanding the foregoing, “Customer Confidential Information” does not include any information that: (i) is or becomes known to members of the public, through no fault of cQuant; (ii) is provided to cQuant by a third party who, to cQuant’s actual knowledge, did not commit a breach of duty or other wrongful act in doing so; (iii) is independently developed by cQuant or is previously known to cQuant; (iv) is required to be disclosed by court order or legal process, but only if cQuant makes commercially reasonable efforts to inform Customer of such order or process in advance of disclosure.
11.2 Nondisclosure and Nonuse of Customer Confidential Information. cQuant shall not use, disseminate, or disclose Customer Confidential Information to any third party without the consent of Customer. cQuant shall use Customer Confidential Information solely to perform Work and otherwise to perform its obligations under this Service Contract. cQuant shall treat all Customer Confidential Information with the same degree of care as cQuant accords cQuant’s own confidential information, but in no case shall cQuant use less than reasonable care. cQuant shall disclose Customer Confidential Information only to those of cQuant’s employees and contractors who have a need to know such information in performing their employment or contracting responsibilities. Each such employee or contractor will have agreed to be bound by terms and conditions that at least as protective of Customer Confidential Information as the terms and conditions applicable to cQuant under this Article. cQuant shall return all Customer Confidential Information to Customer on demand at such time as it is no longer needed to perform Work; provided, however, that cQuant may retain a copy solely for archival purposes, for use or production pursuant to court order or legal process.
11.3 Confidentiality of cQuant Work Product. All cQuant Work Product is proprietary and confidential to cQuant. Except as expressly stated in the applicable Work Order, Customer shall not disclose cQuant Work Product to any third party or use it for any purpose other than the approved purposes stated in the applicable Work Order.
11.4 Prohibition against Reverse Engineering. Customer shall not reverse engineer any Hosted Analytics Services or cQuant Work Product. If Customer does so: (a) cQuant will own all rights in and to the results of such reverse engineering, including all Intellectual Property embodied therein; (b) all such results will be deemed cQuant Work Product; and (c) Customer will assign and transfer to cQuant, and hereby does assign and transfer to cQuant, all right, title, and interest in and to such results.
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11.5 Cooperation. In the event Customer gives cQuant written notice of a “litigation hold” or a request for records under the California Public Records Act (Gov. Code § 6250 et seq.), then as to all data identified in such notice, cQuant shall, at no additional cost to Customer, isolate and preserve all such data pending receipt of further direction from Customer.
11.6 Public Records Act. It is understood that Customer is subject to the California Public Records Act (Gov. Code § 6250 et seq.).
ARTICLE 12. Termination
12.1 Term
Hosted Analytics Services. The terms and conditions of this Service Contract will apply, as to any Hosted Analytics Services, throughout the applicable License Term, unless terminated earlier under another provision of this Service Contract. The License Term and Customer’s obligation to pay subscription fees will renew and continue automatically on a year-to-year basis after the expiration of the then-current License Term, unless Customer gives cQuant written notice of its desire not to renew the License Term, at least three business days before the end of the then-current License Term. The fees to be charged during the License Term as so renewed will not change upon renewal; provided, however, that if cQuant notifies Customer of a price increase, not to exceed five percent, at least ten business days before the end of the then-current License Term, the price increase will apply during the License Term as so renewed.
Professional Services. The terms and conditions of this Service Contract will apply, as to any Professional Services, until the final completion and acceptance of such Professional Services or until terminated under the terms of an applicable Order Form or Work Order.
Effect of Termination; Survival. Upon and after termination, cQuant will cease rendering Services under this Service Contract. Except as stated in the preceding sentence, the terms and conditions of this Service Contract will survive termination for so long as necessary to carry out the intent of the parties.
12.2 Termination of Hosted Analytics Services
By Customer. Customer may terminate any Hosted Analytics Service before its scheduled termination date, for convenience, by so notifying cQuant at any time. Termination will become effective three business days after notice, subject to any contrary provision stated in the applicable Order Form, e.g., a minimum License Term. Fees and other amounts prepaid by Customer will not be refunded upon termination under this paragraph, even if they relate to an unexpired portion of the License Term.
By cQuant. cQuant may terminate any Hosted Analytics Service before its scheduled termination date if (a) Customer has breached any provision of this Service Contract and has failed to cure such breach within 10 calendar days after cQuant notifies Customer of the breach; (b) cQuant is required to do so by law; (c) cQuant’s provision of the Hosted Analytics Services to Customer is, in cQuant’s opinion, no longer commercially viable; or (d) cQuant has elected to discontinue the Hosted Analytics Service.
Procedures upon Termination of Hosted Analytics Services. Upon termination of any Hosted Analytics Service: Customer will no longer have access to the terminated service and shall not attempt to access or use it; the terminated service will be deactivated; and the provisions of Section 6.4 regarding Customer Data will apply.
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ARTICLE 13. Contract Formation; Changes; Precedence
13.1 Acceptance by Customer. Customer will be deemed to have accepted this Service Contract and to have signed the Order Form if Customer receives and accepts any Services. Order Forms may be signed by electronic or digital means or by email correspondence indicating that assent or acceptance was intended.
13.2 Customer Responsible for Acts of Users. Customer is responsible for the acts or omissions of its Users and other employees and contractors occurring in connection with this Service Contract. This Service Contract will apply to all Users; provided, however, that Users’ rights derive entirely from Customer’s rights; Users have no independent rights to use or access any Services.
13.3 Representation of Authority to Bind Customer. An individual who signs the Order Form on behalf of Customer represents that he or she has the authority to do so.
13.4 Changes, Modifications, Amendments, and Waivers
Unilaterally. Except as otherwise provided in this Service Contract, cQuant may change any of these Terms and Conditions; any such change (“Change”) will take effect 30 days after cQuant sends Customer a notice describing the change, by email addressed to Customer’s email address as shown on cQuant’s records. If and only if a particular Change is intended to apply across-the-board to all of cQuant’s customers, it will be posted on the Site, but cQuant’s decision not to post a particular Change on the Site will not affect its applicability to Customer. If Customer continues to use the Service to which a particular Change applies, after the effective date of that Change, Customer will be deemed to have accepted that Change.
By Mutual Consent; Precedence of Order Form. Any provision of this Service Contract may be modified by mutual, written consent of the Parties. The Order Form may contain a modification of this Service Contract, and in such case the parties’ signatures on the Order Form will constitute their written consent to modify this Service Contract accordingly. In case of any inconsistency between this Service Contract and the Order Form, the Order Form will control and take precedence. No waiver of a breach of any provision of this Service Contract shall constitute a waiver of any other or subsequent breach.
ARTICLE 14. General
14.1 Governing Law and Venue. This Service Contract will be governed by and interpreted under the laws of the State of California, without giving effect to any conflict of laws principles that require the application of the law of a different jurisdiction, except that the laws of the United States will apply to questions of copyright, patents, and other exclusively federal matters. Customer hereby consents to the exclusive personal jurisdiction and venue of the state court in Placer County, California, or if appropriate, the federal courts located in the Eastern District of the State of California. The United Nations Convention on Contracts for the International Sale of Goods does not apply to this Service Contract. Customer shall comply at all times with all applicable laws, ordinances, regulations, and statutes, whether foreign or domestic. Without limiting the generality of the foregoing, Customer will not export, reexport, or transfer, directly or indirectly, any United States technical data acquired from cQuant, or any products utilizing such data, in violation of the United States export laws or regulations.
Customer, as a Joint Powers Authority, is a separate public entity from its constituent members and will be solely responsible for all debts, obligations and liabilities accruing and arising out of this Agreement.
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Consultant acknowledges that it will have no rights and agrees not to make any claims, take any actions or assert any remedies against any of Customer’s constituent members in connection with this Agreement.
14.2 Local Laws. cQuant and its suppliers make no representation that any Hosted Analytics Services is appropriate or available for use in countries other than the United States. If Customer uses any Hosted Analytics Services from outside the United States, Customer is solely responsible for compliance with all applicable laws, including without limitation export and import regulations of other countries. Neither party shall distribute or use any Content in a manner that violates United States law.
14.3 Certain Rules of Construction. Headings and titles in these Terms and Conditions are for reference only and will be ignored for purposes of construing and applying the terms hereof. The word “including” will be construed as though it is followed by the words “without limitation”. References to this Service Contract will be deemed to include and constitute references to all related Order Forms and Work Orders. References to an article or section of this Service Contract will be construed as references to that article or section and all its parts and subparts.
14.4 Successors and Assigns. cQuant may not subcontract or otherwise delegate cQuant’s Professional Services obligations under this Service Contract without Customer’s prior written consent. This Service Contract will inure to the benefit of, and will be binding upon, the heirs, successors, and permitted assigns of the parties, respectively.
14.5 Injunctive Relief. Injunctive relief will be available to either Party to prevent or stop a breach by the other Party of its confidentiality or nonsolicitation obligations, if any, or in any other appropriate circumstances.
14.6 Notices. Any required or permitted notice must be in writing, which includes email. Notice will be deemed given when it is actually received and will be presumed received and read within one business day after it is sent. Notice to cQuant must be sent to: [email protected]. Notice to Customer must be sent to Customer’s email addresses stated in the applicable Order Form or Work Order. Either party may change its email address for notice purposes by giving written notice of the change to the other party.
14.7 Severability. If any provision of this Service Contract is held invalid or unenforceable, the other provisions of this Service Contract will remain valid and enforceable, and the invalid or unenforceable provision will be deemed modified insofar as it necessary to render it valid, enforceable and conforming as closely as possible to the intent of the parties. The court is hereby given the authority to modify this Service Contract to effectuate the preceding sentence.
14.8 Entire Agreement. These Terms and Conditions and all related Order Forms and Work Orders, which together comprise this Service Contract, constitute the entire agreement between the parties relating to its subject matter and supersede all prior and contemporaneous agreements concerning such subject matter, whether written or oral.
14.9 Effectiveness. This Service Contract will be effective from and after the Effective Date and will continue in effect as stated in Section 12.1.
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SERVICE LEVEL AGREEMENT
Uptime Warranty
cQuant warrants that the Uptime percentage, as defined below, will equal or exceed 99.5% in each month throughout the Term (“Uptime Warranty”). The “Uptime Percentage”, during any calendar month, is equal to (x) the number of minutes that Customer is able to access the Service on a continuous basis during that calendar month divided by (y) the total number of available minutes during the same month. For purposes of the foregoing, the Customer will be considered able to access the Service on a continuous basis, and the Uptime calculation will not be affected, during any and all of the following circumstances; (a) planned outages outside of normal business hours where cQuant has provided Customer with a timely Notice of Downtime as described below ; or (b) any interruption in the ability of Customer to access the Service that continues for less than 10 minutes or results from causes beyond cQuant’s control, including, but not limited to (i) any failure in Customer’s own computer systems, telephone equipment, hardware, software or other equipment, (ii) a Force Majeure event; (iii) any act or omission by Customer or any of its users; and (iv) outage or downtime of the services of cQuant’s hosting provider, Amazon Web Service. For purposes of this definition the Service includes the complete operating environment, including the applications, data center and data network, as well as all integrated telecommunications equipment. Service does not include any of the following, if owned or operated by Customer: the data network, any data processing equipment, any telecommunications equipment or services, Internet or broadband service, or any other publicly available data communications facilities utilized by Customer.
Customer shall use, and shall provide to cQuant on demand, all log files, database records, audit logs, and other information reasonably available to enable cQuant to investigate fully all claims for breach of the Uptime Warranty (“Warranty Claims”) and to make a reasonably accurate, good faith judgment regarding the Customer’s due remedy, if any. At Customer’s request cQuant will make available to Customer all information used by cQuant in evaluating Customer’s Warranty Claims. cQuant may establish, and may modify from time to time, reasonable procedures for the submission of Warranty Claims.
NOTICE OF DOWNTIME. cQuant will use commercially reasonable efforts to provide Customer at least 48 hours’ notice of the date, start time, and completion time of any regularly scheduled data center downtime. cQuant will provide notification of downtime by email to Customer’s designated application administrators, and, if requested, to other users within Customer’s organization, provided that Customer has maintained a current email address for each such user in accordance with cQuant’s instructions.
Remedies
Customer’s sole and exclusive remedies for breach of the Uptime Warranty will be as stated below in this section.
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If Customer submits a valid Warranty Claim, cQuant will provide Customer with a refund of a portion of the subscription fees, calculated in accordance with the table below.
Uptime in any Calendar Month Remedy
Less than 99.5% but equal to or greater than 95.0% Refund or credit of 10% of one month’s subscription fee
Less than 95.0% but equal to or greater than 90.0% Refund or credit of 15% of one month’s subscription fee
Less than 90.0% Refund or credit of 25% of one month’s
subscription fee
If Customer submits one or more valid Warranty Claims for incidents occurring in each of three consecutive calendar months, then in lieu of the remedies stated in the above table, Customer may terminate its subscription for the Service on 30 days’ written notice, in which event Company will pay Customer a pro-rated refund of the fees paid but not yet earned, within 10 days after Company receives Customer’s demand for the same; provided, however, that any refunds previously paid under the above table will be credited in favor of cQuant.
Support
Severity Levels – Definitions
Severity Level Definition
1 System is completely unavailable or is inoperable; i.e. users cannot log into the system or the system performance is degraded such that users are unable to use the system.
2 System is available, but critical business processes and multiple users are substantially impacted. Some business operations can proceed. 3 System is available, but business processes and multiple users are moderately impacted. Severity 3 will also cover situations where a suitable workaround has been established for a Severity 1 or Severity 2 incident. Example: A user’s model run is not completing or is failing.
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4 System is available, and a fault is identified that has minor or no business impact. Example: usability issue, cosmetic fault, etc.
Severity Response Times
cQuant will manage incidents to the following severity timing and activity levels:
Severity Level Response Resolution
1 30 minutes Three Hours
2 Two hours 24 Hours
3 Four hours Five business days. If new code is
required, code fix may be scheduled for
next monthly release.
4 Within one business day Will be scheduled into a following major software release.
Support Procedures
Requests must be submitted during cQuant’s normal business hours, which are Monday through Friday, 7 AM – 5 PM Mountain Time, excluding bank holidays. cQuant’s standard support procedures are as follows:
a. Requests for support may be submitted by any of the following methods:
• Via a dedicated customer support email, provided to customers during their service, or • Via telephone at the number listed on the cQuant website, or • Via mail sent to the address listed on the cQuant website.cQuant will provide support for certain users via E-mail only, as specified in the appropriate Description of Service. b. All requests for support must be submitted by one of the specific named users who is licensed to access the Service.
c. Support requests should include as much detail as possible in order to facilitate the resolution process. Required detail includes such items as user name, issue description and urgency, application page being used, document and vendor numbers, number of users affected, date/time, etc.
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d. Customer’s application administrator or other contact must be available to assist with further information gathering or resolution testing.
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EXHIBIT B
PAYMENT FOR SERVICES RENDERED
Payment shall be made to Consultant on a Fixed Fee basis, and the outlined services shall not exceed One Hundred Ninety Seven Thousand Five Hundred Dollars ($197,500) per year consisting of $157,500 base fee and a one-time implementation cost of $40,000.
Submit all invoices to: Pioneer Community Energy
Attn: Sam Kang and Eric Acedo
[email protected]
[email protected]
2510 Warren Drive, Suite B
Rocklin, CA 95677
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EXHIBIT C
FACILITIES, EQUIPMENT, AND OTHER
MATERIALS, AND OBLIGATIONS OF PIONEER
NOT APPLICABLE
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EXHIBIT D
INSURANCE REQUIREMENTS
1.. INSURANCE:
CONSULTANT shall file with PIONEER concurrently herewith a Certificate of Insurance, in companies acceptable to PIONEER, with a Best's Rating of no less than A-:VII showing.
2.. WORKER'S COMPENSATION AND EMPLOYERS LIABILITY INSURANCE:
Worker's Compensation Insurance shall be provided as required by any applicable law or regulation.
Employer's liability insurance shall be provided in amounts not less than one million dollars ($1,000,000) each accident for bodily injury by accident, one million dollars ($1,000,000) policy limit for bodily injury by disease, and one million dollars ($1,000,000) each employee for bodily injury by disease.
If there is an exposure of injury to CONSULTANT'S employees under the U.S. Longshoremen's and Harbor Worker's Compensation Act, the Jones Act, or under laws, regulations, or statutes applicable to maritime employees, coverage shall be included for such injuries or claims.
Each Worker's Compensation policy shall be endorsed with the following specific language:
Cancellation Notice - “This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy”.
Waiver of Subrogation - The workers’ compensation policy shall be endorsed to state that the workers’ compensation carrier waives its right of subrogation against Pioneer, its officers, directors, officials, employees, agents or volunteers, which might arise by reason of payment under such policy in connection with performance under this agreement by the CONSULTANT.
CONSULTANT shall require all SUBCONTRACTORS to maintain adequate Workers' Compensation insurance. Certificates of Workers' Compensation shall be filed forthwith with Pioneer upon demand.
3.. GENERAL LIABILITY INSURANCE:
A. Comprehensive General Liability or Commercial General Liability insurance covering all operations by or on behalf of CONSULTANT, providing insurance for bodily injury liability and property damage liability for the limits of liability indicated below and including coverage for:
(1) Contractual liability insuring the obligations assumed by CONSULTANT in this Agreement.
B. One of the following forms is required:
(1) Comprehensive General Liability;
(2) Commercial General Liability (Occurrence); or
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(3) Commercial General Liability (Claims Made).
C. If CONSULTANT carries a Comprehensive General Liability policy, the limits of liability shall not be less than a Combined Single Limit for bodily injury, property damage, and Personal Injury Liability of:
→One million dollars ($1,000,000) each occurrence
→Two million dollars ($2,000,000) aggregate
D. If CONSULTANT carries a Commercial General Liability (Occurrence) policy:
(1) The limits of liability shall not be less than:
→One million dollars ($1,000,000) each occurrence (combined single limit for bodily injury and property damage)
→One million dollars ($1,000,000) for Products-Completed Operations →Two million dollars ($2,000,000) General Aggregate
(2) If the policy does not have an endorsement providing that the General Aggregate Limit applies separately, or if defense costs are included in the aggregate limits, then the required aggregate limits shall be two million dollars ($2,000,000).
E. Special Claims Made Policy Form Provisions:
CONSULTANT shall not provide a Commercial General Liability (Claims Made) policy without the express prior written consent of PIONEER, which consent, if given, shall be subject to the following conditions:
(1) The limits of liability shall not be less than:
→One million dollars ($1,000,000) each occurrence (combined single limit for bodily injury and property damage)
→One million dollars ($1,000,000) aggregate for Products Completed Operations →Two million dollars ($2,000,000) General Aggregate
(2) The insurance coverage provided by CONSULTANT shall contain language providing coverage up to one (1) year following the completion of the contract in order to provide insurance coverage for the hold harmless provisions herein if the policy is a claims-made policy.
Conformity of Coverages - If more than one policy is used to meet the required coverages, such as a separate umbrella policy, such policies shall be consistent with all other applicable policies used to meet these minimum requirements. For example, all policies shall be Occurrence Liability policies or all shall be Claims Made Liability policies, if approved by Pioneer as noted above. In no cases shall the types of polices be different.
4/. PROFESSIONAL LIABILITY (OR ERRORS AND OMISSIONS) LIABILITY INSURANCE: Consultant shall maintain professional liability (or errors and omissions liability)k insurance that covers the Services to be performed in connection with this Agreement, with minimum limits of $1,000,000 per claim/aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement. If a “claim made”
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policy is provided, then the policy shall be endorsed to provide an extended reporting period of not less than three years.
5.. ENDORSEMENTS:
Each Comprehensive or Commercial General Liability policy shall be endorsed with the following specific language:
A. "Pioneer Community Energy, its officers, agents, employees, and volunteers are to be covered as additional insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement." B. "The insurance provided by the Consultant, including any excess liability or umbrella form coverage, is primary coverage to Pioneer Community Energy with respect to any insurance or self-insurance programs maintained by Pioneer Community Energy and no insurance held or owned by Pioneer Community Energy shall be called upon to contribute to a loss." C. “This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy.
6. AUTOMOBILE LIABILITY INSURANCE:
Automobile Liability insurance covering bodily injury and property damage in an amount no less than one million dollars ($1,000,000) combined single limit for each occurrence.
Covered vehicles shall include owned, non-owned, and hired automobiles/trucks.
7. ADDITIONAL REQUIREMENTS:
Premium Payments - The insurance companies shall have no recourse against PIONEER and funding agencies, its officers and employees or any of them for payment of any premiums or assessments under any policy issued by a mutual insurance company.
Policy Deductibles - The CONSULTANT shall be responsible for all deductibles in all of the CONSULTANT’s insurance policies. The maximum amount of allowable deductible for insurance coverage required herein shall be $25,000.
CONSULTANT’s Obligations - CONSULTANT’s indemnity and other obligations shall not be limited by the foregoing insurance requirements and shall survive the expiration of this agreement.
Verification of Coverage - CONSULTANT shall furnish Pioneer with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by Pioneer by the time this Agreement is fully executed. However, failure to obtain the required documents prior to this time shall not waive the CONSULTANT’s obligation to provide them. Pioneer reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
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Material Breach - Failure of the CONSULTANT to maintain the insurance required by this agreement, or to comply with any of the requirements of this section, shall constitute a material breach of the entire agreement.
Staff Report – Item 4
To: The Governing Board
From: Donald Eckert, Chief Executive Officer
Item 4: Adopt Resolution Authorizing a Rate Adjustment Effective July 1, 2024 Date: 7/18/2024
RECOMMENDATION
Adopt Resolution approving implementation of Pioneer Community Energy’s (“Pioneer”) Customer Generation Rate changes effective July 1, 2024.
BACKGROUND
At the December 14, 2023, Governing Board meeting, the Board provided direction to staff on Pioneer’s rate adjustments to be effective on January 1, 2024. The rate adjustments resulted in the discounts compared to Pacific Gas & Electric’s (“PG&E”) customer generation rate as illustrated in the following table based on the Power Charge Indifference Adjustment (“PCIA”) vintage:
In late June 2024, PG&E announced temporary rates decrease for the summer months (see Attachment 1) effective July 1st. The primary reason was the completion of cost recovery of work during prior years. The revised tariffs were made available to Pioneer on July 1st, resulting in the following changes to Pioneer’s competitiveness:
ANALYSIS & DISCUSSION
Rate competitiveness is Pioneer’s mission and utmost priority. With the recent adjustments, staff recommend action to maintain rate competitiveness while reducing our rates during this excessive weather summer.
The following are options for the Board to consider in rate setting to be retroactive to July 1, 2024:
Service Territory Based on PCIA Vintage
Discount to
PG&E
Placer County (2017 PCIA Vintage) -10%
El Dorado County (2021 PCIA Vintage) -19%
Nevada City/Grass Valley (2023 PCIA Vintage) -12%
Service Territory Based on PCIA Vintage
Discount to
PG&E
Placer County* 2%
El Dorado County -9%
Nevada City/Grass Valley -1%
* Placer County would be at a premium to PG&E
Plf)NEER
COMMUNITY ENERGY
Agenda Item: 4 Agenda Date: 7/18/2024
Option 1 – ‘Seasonal Discount’
Pioneer would adjust rates to a minimum of 5% discount for Placer County for Summer Rates (end of September) compared to PG&E’s generation rate when the electricity usage is at its highest and then lower the discount to a minimum of 1% for Winter Rates. This option provides the most benefit when usage is at its highest while positioning Pioneer as competitive with the least fiscal impact.
The following table illustrates the discount to PG&E and the fiscal impact:
Option 2 – ‘Flat Discount’
Pioneer would adjust the rates to achieve at least a 3% discount for Placer County. That discount would be maintained throughout the Summer and Winter season. The following tables illustrates the discount to PG&E and the fiscal impact:
Option 3: ‘Maintain Current Discount’ (Not Recommended) Pioneer would adjust the rates to maintain the current discount as of June 30th. This option is not recommended as it would result in a significant decrease in revenues leading to a budget deficit. This summer has proven to be extraordinary with heat - ith three months remaining and the potential of additional heat related events and the uncertainty in the direction of PG&E rates for 2025. The table below illustrates the fiscal impact:
Programs
With Pioneer projected to end the fiscal year only slightly above our minimum expense coverage days with either Option 1 or 2, cost reduction strategies should be considered to partially mitigate the reduced revenue.
Staff recommends reducing the programs budget from 2% of operating revenues to 1% which partially mitigates reduced revenues by $2.6 million.
Service Territory Based on PCIA Vintage Summer Winter
Placer County -5% -1%
El Dorado County -15% -10%
Nevada City/Grass Valley -7% -2%
Fiscal Impact (in millions)
Discount to PG&E
$10.8
Service Territory Based on PCIA Vintage
Discount to
PG&E
Placer County -3%
El Dorado County -13%
Nevada City/Grass Valley -5%
Fiscal Impact (in millions) $11.5
Service Territory Based on PCIA Vintage
Discount to
PG&E
Placer County -10%
El Dorado County -19%
Nevada City/Grass Valley -12%
Fiscal Impact (in millions) $30.0
Agenda Item: 4 Agenda Date: 7/18/2024
Summary and Recommendation
Staff recommends the Seasonal Discount option as it provides the ratepayer with value at the time of the year it is needed most and maintains Pioneer’s financial stability. The following table illustrates the comparison of Option 1 and 2:
Customer Billing
Staff have been collaborating with Pioneer’s data management consultant, Calpine, to implement the new rates as soon as possible upon approval by the Board.
Since the rate changes will be implemented the week of July 22nd, there will be a significant share of our ratepayers that will have received bills already for July usage at the current rates. On the August bill, Pioneer will credit those ratepayers for the difference between the new rates and the current rates for usage in July. An extensive communications campaign to our ratepayers will commence upon Board approval of the new rates.
Further Rate Adjustments in 2024
While PG&E states in their press release the rate decreases are temporary, staff is applying a conservative approach by assuming the rates will stay in effect until the end of 2024. However, if rates are adjusted at the conclusion of the summer, staff will bring back proposed rate adjustments if appropriate.
Staff will still follow the end of year process where rates recommendations are presented to the Board based on anticipated movements by PG&E for 2025.
STRATEGIC PLAN
Approval of a rate adjustment is consistent with and supports two of Pioneer’s adopted Strategic Priorities:
• Quality in Service – Pioneer’s mission to power the communities we serve with competitive rates, reliable service, and a choice in energy options comes from the commitment to quality service. • Financial Stability & Strategic Growth – Pioneer operates in a manner that ensures financial stability and delivers customer value.
FISCAL IMPACT
The recommended ‘Seasonal’ option (Option #1) would maintain Pioneer’s competitiveness, benefit our ratepayers when electricity usage is at its highest, and support Pioneer’s financial stability. The fiscal impact would be an $8.2 million reduction in net position.
ATTACHMENTS
1. PG&E Press Release
2. Resolution authorizing implementation of Pioneer’s Customer Generation Rate changes effective July 1, 2024 Service Territory Based on PCIA Vintage Summer Winter Summer Winter Placer County -5% -1% -3% -3%
El Dorado County -15% -10% -13% -13%
Nevada City/Grass Valley -7% -2% -5% -5%
Fiscal Impact (in millions)
Less Programs reduction
Net Fiscal Impact
Projected Expense Coverage Days
(End of Fiscal Year)
180 days
$10.8
$2.6
$8.2
182 days
Seasonal Option Flat Option
Discount to PG&E Generation Rates
$11.5
$2.6
$8.9
1 PG&E Currents
| 6.26.24
Lower Electric Rates to Affect Bills in Hottest Summer Months PG&E electric rates will decrease by 9% on July 1—a temporary rate change that will help customers save on their bill during the hottest months of the year.
In parts of PG&E’s service area that experience extreme summer heat, such as the Central Valley, the rate decrease could provide an even bigger benefit because they tend to use more energy to cool their homes in the hotter summer months.
Residential customers who receive both energy supply and delivery from PG&E will see about a 9% decrease in electric rates through the summer. Customers who receive their energy supply through a Community Choice Aggregation program will see a decrease of 7% in PG&E’s rates for delivery service.
"We are always looking for ways we can help make energy service more affordable for customers,” said Vincent Davis, Senior Vice President of Customer Experience. “This is a temporary rate change, but we know it is coming at the right time, especially for customers who live in hotter climates and have higher bills during the summer months.”
2 Electric rates will temporarily decrease because in June, the company will finish collecting costs for important work completed in 2020 and 2021.
The California Public Utilities Commission approved the work in key areas including:
• Energy supply
• Wildfire prevention
• Storm response
The commission is considering PG&E’s request to collect costs for similar work completed in 2022 and 2023. The commission’s decision in that rate request could result in a rate increase later this year.
PG&E expects the combined bill impact of the July decrease and a potential increase in coming months to have little effect on customers’ average bills for the rest of 2024.
PG&E continues to look at dozens of ways to reduce operating costs without affecting safety, reliability or customer service.
The company is managing more than 150 projects systemwide to reduce costs including materials and labor.
Examples include:
• Reducing tree-trimming costs by $500 million in 2022 and 2023 through new efficiencies in contractor oversight and by bundling work to reduce visits to customers’ homes • Lowering costs to underground powerlines by $68 million with new construction methods • Saving $24 million in new-business connections by improving processes, while improving customer on-time delivery
PG&E also collaborated with customer advocates on an alternative to commercial insurance, saving customers up to $1.8 billion over four years.
We will keep our customers informed as we continue to find ways to reduce electric rates. 365814.1
Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held July 18, 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, Pioneer Community Energy (“Pioneer”) was formed for the purpose of providing local control of energy resources, to provide competitive and stable rates, and to provide programs to foster economic development, energy efficiency, and resource conservation; and WHEREAS, Pioneer has the authority to aggregate electric load to purchase and supply electricity for customers within its jurisdiction; and
WHEREAS, Pioneer has provided electric generation service to its customers since initiating service on February 1, 2018; and
WHEREAS, Pioneer has a need to adopt customer generation rates that are competitive and contribute to Pioneer’s cash reserves to allow Pioneer to respond to risk, and provide competitive and stable rates; and
WHEREAS, on December 14, 2023, the Governing Board adopted Resolution No. 2023-36 which approved the most recent customer generation rates that are currently in effect; and WHEREAS, due to the sudden generation rate decrease by PG&E effective July 1, 2024, the Board desires to maintain a rate discount compared to PG&E; and In the matter of: APPROVE IMPLEMENTATION OF
PIONEER GENERATION RATE CHANGES
EFFECTIVE JULY 1, 2024, AND AMENDED FISCAL
YEAR 2024-25 BUDGET
Resolution No. ___
July 18, 2024
2 365814.1
WHEREAS, funding allocation to the Program Fund was increased in Fiscal Year 2024-25 from 1% of electricity revenue (i.e. Energy Sale and Green 100 Sales) to 2% and Pioneer is in the early stages of program development; and
WHEREAS, the Resolution 2023-23 established a Special Fund known as the Program Fund for accounting purposes and directed unexpended funds in one fiscal year to ‘roll’ into the next fiscal year; and
WHEREAS, on July 18, 2024, the Board conducted a public hearing and reviewed, considered, discussed rate adjustment scenarios; and
WHEREAS, all the rate adjustment scenarios considered by the Board offered Pioneer customers savings compared to the PG&E generation rates effective July 1, 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 Chief Executive Officer is hereby authorized to amend Pioneer’s current Summer Electric Generation Rates Schedule authorized by Resolution 2023-36 so that Pioneer’s customer generation rates will be at least 5% lower than the sum of PG&E’s generation rates and the 2017 Vintage PCIA.
3. The Chief Executive Officer is hereby authorized to amend Pioneer’s current Winter Electric Generation Rates Schedule authorized by Resolution 2023-36 so that Pioneer’s customer generation rates will be at least 1% lower than the sum of PG&E’s generation rates and the 2017 Vintage PCIA.
4. Pioneer’s Summer Electric Generation Rates shall become effective on July 1, 2024.
5. Pioneer’s Winter Electric Generation Rates shall become effective on the same date as PG&E’s Winter Electric Generation Rates on October 1, 2024.
6. Fiscal Year 2024-25 projected revenues from Energy Sales and Green 100 Sales will be reduced by $10,793,000 and $9,200 respectively.
7. Fiscal Year 2024-25 Program Fund allocation will be decreased from 2% to 1% of the reduced electricity revenue from $4,901,007 to $2,343,940.
8. Fiscal Year 2024-25 anticipated contribution to Net Position will be reduced from $24,633,608 to $16,534,305.
9. In accordance with Resolution 2023-23, any unspent Fiscal Year 2023-24 Program Fund budget, as per the audited financial statements of Fiscal Year 2023-24, once completed, will ‘roll over’ to Fiscal Year 2024-25 and increase the Program Fund budget accordingly.”
Resolution No. ___
July 18, 2024
3 365814.1
10. The Amended Fiscal Year 2024-25 Budget Summary that reflects the above modifications as displayed in Exhibit A is approved.
Attachment: Exhibit A – Amended Fiscal Year 2024-25 Budget Summary
EXHIBIT A
Staff Report – Item 5
To: The Governing Board
From: Devin Reaves, Power Resources Manager
Item 5: Update on Power Markets and Energy Procurement
Date: 7/18/2024
RECOMMENDATION
Receive an update on power markets and energy procurement.
BACKGROUND
Energy Procurement accounts for over 90% of Pioneer Community Energy’s (Pioneer) operating costs and has been extremely volatile in the past couple of years. Staff has assembled this report in order to provide an update on the state of the power markets, to explain the reasons for the increased market volatility, and to provide updates on energy procurement including a bond prepay transaction and some biomass programs.
Some big drivers for increased demand in an already scarce California market are legislative and regulatory requirements brought on by California Senate Bills (SB) 350 and 100 (requiring minimum renewable energy purchases), and California Public Utilities Commission decisions on resource adequacy. SB 350 increased California's renewable electricity procurement goal from 33% by 2020 to 50% by 2030 with incremental increases on an annual basis and required that 65% of a load-serving entities’ (LSE) entire portfolio come from renewable resources on a compliance period basis.
• SB 350 formally defines three new Compliance Periods:
• Compliance Period 4: 2021-2024, four years
• Compliance Period 5: 2025-2027, three years
• Compliance Period 6: 2028-2030, three years
• SB 100 established a policy increasing renewable electricity procurement goal to 60% by 2030 and requiring renewable energy and zero-carbon resources supply 100 percent of electric retail sales to end-use customers by 2045.
• The California Public Utilities Commission (CPUC) requires all LSEs to procure their load share amount of resource adequacy on an annual basis.
• CPUC Decision 10-11-016 (Nov-2019) assigned an incremental 3,300 MW shared by all LSEs (18.5 MW for Pioneer)
• CPUC D.21-06-035 (June 2021) assigned an incremental 11,500 MW (70 MW for Pioneer) • Decision D.23-02-040 (February 2023) Updating and Adding to D.21-06-035 MTR Procurement Requirements assigned an incremental 4,000 MW (38 MW for Pioneer) • The CPUC has most recently developed reforms to its processes, including a “slice-of-day” resource adequacy program designed to ensure that load-serving entities procure sufficient resources to meet peak demand and charge system batteries after solar energy declines at the end of the day. Specifically, the CPUC’s 24-hour slice-of-day framework requires each load-serving entity to demonstrate enough capacity to satisfy its specific gross load profile — including a planning reserve margin — in all 24 hours on the ISO’s “worst day” of each month. “Worst day” is defined as the day of the month that contains the hour with the highest peak load forecast. The SOD compliance requirement begins in 2025.
Plf)NEER
COMMUNITY ENERGY
Agenda Item: 5 Agenda Date: 7/18/2024
Being compliant with legislative and regulatory requirements is very important to Pioneer, as it saves us tens of millions of dollars in avoided cost penalties. Even in these volatile market prices and scarce resource environment, Pioneer has managed to remain compliant in all categories.
In addition to being compliant, Pioneer continues to find ways to keep rates low for its customers. One key accomplishment was the issuance of prepayment bonds for four of Pioneer’s power purchase agreements that generated a 12% savings off those PPA payments. On an annual basis this equates to a $2.8MM savings, and over the initial period of the Prepay totals $16.8MM.
Finally, in line with the Pioneer Board’s directive prioritizing investments in biomass energy, important progress has been made on biomass procurement through the bioenergy market adjusting tariff (BioMAT) and Feed-in Tariff (FIT).
ANALYSIS & DISCUSSION
Pioneer procures three types of energy products, namely California Independent System Operator (CAISO) Energy (Energy), Renewable Energy Certificates (RECs) and Resource Adequacy (RA). The following are updates on the respective markets.
Energy Markets
After a mild summer in 2023, forward Energy Prices have been on a decline. The reasons for the decline of CAISO Energy includes:
• Mild Weather Continuing
• Above average hydro production
• Battery penetration onto grid
• Cheap Natural Gas and Gas Storage surplus
The table below shows the year over year change of the forward curve for the time frame of June 2024- May 2025, from snapshots taken between June 2023 – June 2024. The forward curve shows a decline in prices since the summer of 2023. The mild weather and strong supply stack, stated above, are the main drivers behind the decline in prices.
$120
$100
$80
$60
$40
$20
Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Oec-24 Jan-2S Feb-25 Mar-25 Apr-25 May-25 - Jun-23 - sep-23 - oec-23 Apr-24 - Jun-24
Agenda Item: 5 Agenda Date: 7/18/2024
Renewables Portfolio Standard (RPS) Market
The exponential increase in pricing has not slowed down over the last 2 years. The current broker marks for forward Portfolio Content Category (PCC) 1 bucket REC show that pricing is not forecasted to decline. In Q3 of 2022 the price for a PCC1 REC was approximately $20/MWh whereas now we are seeing prices anywhere from $80-$85/MWh as shown in the chart below.
The primary reason is due to the scarcity (project delays, etc.) of the RPS market and the demand from LSEs to meet their compliance obligations. Prices should start showing relief when delays from projects start to be resolved and come online.
RA Market
RA continues to be the biggest problem facing California. Prices have risen exponentially over the last few years, and the 2024 annual strip is priced over triple what it was in 2022 as shown in the chart below. $-
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2021 2022 2023 2024 2025
$/MWh
Year
PCC1 Prices, $/MWh
$-
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Year
Yearly RA Prices, $/kW-mo
Agenda Item: 5 Agenda Date: 7/18/2024
Q3 RA prices have increased significantly higher, with prices rising five-fold since 2022 as seen in the table below.
There are several factors driving the rise in RA prices:
• New resources have been delayed
• The West region, as a whole, has been constrained leading to lower imports • CPUC has greatly decreased the Net Qualifying Capacity (NQC) factor for solar and wind • CPUC has increased the planning margins for IOUs which has increased their RA requirements • Restrictive import RA program
Starting in 2025, the RA market will change to an hourly basis called Slice of Day (SOD) instead of a monthly or yearly RA compliance measurement. This makes Pioneer’s compliance targets more complicated as now there is an hourly compliance requirement each month. Currently Pioneer is compliant with the new SOD Structure based on this year’s (2024) test period, but there are some issues with the new structure that will need to be addressed for ease of future compliance such as not being able to trade RA on an hourly basis and uncertainty around counting of certain resources.
Regulatory Compliance
Pioneer works hard to be compliant with all the Legislative and Regulatory requirements from agencies such as the CPUC and California Energy Commission. Even under volatile market conditions, Pioneer has continued to stay in full compliance to save tens of millions of dollars in avoided cost penalties. Below is a listof the important compliance filings that Pioneer must complete:
Resource Adequacy
• Year Ahead Load Forecast
• Monthly Load Forecast Update
• Year Ahead Compliance Demonstration, System RA
• Year Ahead Compliance Demonstration, Flexible RA
• Historical load data, annual
• Monthly Compliance Demonstration, System and Flexible RA. 0 20
40 60
80 100
120
140
0 2 4 6 8 10 12 14
$/kW-mo
Month
Monthly RA Prices, $/kw-mo
2021
2022
2023
2024
-+-2025
~
Agenda Item: 5 Agenda Date: 7/18/2024
• Year Ahead RA Plan
• Monthly RA Plan
• Annual Flexible Capacity Needs Assessment
• MIC Expansion Request
• New Use Import Commitment
• Local RA participation in Central Procurement Entity (CPE) showings/auctions • CAISO Maximum Import Capability Allocation Process
Renewables Portfolio Standards
• Annual RPS Compliance Report
• WREGIS REC Retirement Report
• Periodic Certificate Retirement (ongoing; not specific to a compliance program) • Compliance Report Verification
• RPS Procurement Plan data templates and select portions of narrative • WREGIS account management, certificate transfer review and retirement.
Power Source Disclosure Program
• Annual Report: Power Source Disclosure Program
• Annual Power Source Disclosure Report and Power Content Label Attestation • Annual Power Content Label
Quarterly Fuels and Energy Reports (QFER)
• CEC-1306B - Load Serving Entity (LSE) Quarterly Report US Energy Information Agency
• EIA 861M
o EIA 861
Integrated Energy Policy Report (IEPR)
• IEPR Demand Forecast (Biennial)
• IEPR Resource Plans (Biennial)
Integrated Resource Plan
• Load forecast comments and adjustments
• IRP data templates and select portions of plan narrative • D.19-11-016 and D.21-06-035 Mid-Term Reliability Procurement data template updates Joint Rate Comparison
• Joint Rate Comparison
• Joint Rate Comparison and Joint Rate Mailer
PCIA Price Reporting
• PCIA Resource Adequacy Price Data Request
• PCIA RPS Price Data Request
Annual Emission Performance Standard Compliance Filing
• Contracts and compliance category for all contracts with terms of five years or longer Prepay Transaction
In its ongoing efforts to keep rates low for its customers, Pioneer identified a method to reduce its power purchase agreement payments (PPA) through the issuance of prepay bonds. Using four of its PPAs, Pioneer was able to take advantage of the tax-exempt status to issue tax-exempt green bonds that generated a 12% savings off those PPA payments. On an annual basis this equates to a $2.8MM savings, and over the initial period of the Prepay totals $16.8MM. J. Aron (Goldman Sachs subsidiary) was the banker on the transaction, and California Community Choice Financing Authority (where Pioneer is an Associate Member) is the conduit for the bond payments.
Agenda Item: 5 Agenda Date: 7/18/2024
BioMAT
Almost 2.5 years after passing the legislature, AB 843 has received CPUC approval and has been implemented, allowing CCAs to participate in the BioMAT program. Pioneer officially launched its BioMAT program in May of this year, and already has one candidate as its first participant.
Pioneer, on behalf of the City of Grass Valley, issued an RFP for a biomass project in Nevada County/Grass Valley in May 2024 and awarded the project in June 2024 to West Biofuels, an experienced biomass project developer with various projects in operation and upcoming. If all goes well, Pioneer expects the project to come online in 2026, helping to reduce fire-hazardous woody biomass from Grass Valley and the surrounding areas, providing much needed baseload renewable energy to the grid, and creating local jobs.
Pioneer continues to actively search for other potential biomass projects, especially in its service territory.
Feed In Tariff (FIT)
In November 2023, Pioneer’s Board approved a feed-in-tariff (FIT) specifically tailored towards local procurement of biomass and small hydro electricity in its service territory. A few biomass projects have shown promise, but issues including sizing and pricing remain a constraint based on the current FIT parameters for projects to move forward.
STRATEGIC PLAN
The recommendation supports the Operational Excellence priority.
FISCAL IMPACT
There is no fiscal impact with the report.
ATTACHMENTS
There is no attachment to the report.
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1 2 3 4 5 6
Millions
Year
Prepay Savings
Cumlavtive Savings Annual Savings
Staff Report – Item 6
To: The Governing Board
From: Donald Eckert, Chief Executive Officer
Item 6: Approve the 2024-2027 Strategic Plan
Date: 7/18/2024
RECOMMENDATION
Approve Pioneer Community Energy’s (“Pioneer”) 2024-2027 Strategic Plan. Subsequently, staff will develop a marketable strategic plan document over the summer to be adopted at the September Board meeting.
BACKGROUND
At the September 16, 2021, Board meeting, the Board adopted the FY 2021-2024 Strategic Plan.
At the March 21, 2024, Board meeting, staff reviewed progress on goals of each priority in the FY 2021-2024 Strategic Plan and a preview of schedule and expectations for the development of the FY 2024-2027 Strategic Plan.
At the April 29, 2024, Board meeting, the Board discussed and provided direction on the Strategic Priorities and goals supporting those priorities.
At the May 16, 2024, Board meeting, the Board discussed and provided direction on the Goals and Key Performance Indicators for measuring progress to those goals.
ANALYSIS & DISCUSSION
With the 2024-2027 Strategic Plan, Pioneer enters a third phase in its growth:
• Pioneer 1.0 (2018-2020) focused on launching the agency. • Pioneer 2.0 (2021-2024) focused on establishing the business.
Pioneer 3.0 is focused on building the accomplishments of the past six years and upgrading into becoming a partner to our members and customers on energy issues. When comparing the current plan to the new plan being proposed, there was not an overhaul in the mission, vision, or goals but an update to reflect the direction Pioneer is heading. Therefore, the mission (what we do) and the vision (where we want to be) are not changed.
For reference, the following is the mission and vision:
• 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 of energy options. • Vision Statement: A community partner in reliable energy solutions and positive local impact, powering today and empowering tomorrow.
The strategic goals along with objectives and measures to gauge success are covered on the following pages:
Plf)NEER
COMMUNITY ENERGY
Agenda Item: 6 Agenda Date: 7/18/2024
STRATEGIC GOAL: COMMUNITY PARTNER
OBJECTIVE: Community engagement
Task Measure Outcome
Engagement with our Placer County
and El Dorado County ratepayers
Maintain 85% participation rate for
Placer and El Dorado County
customers
Focus on maintaining relationships
with those that are participating in
Pioneer while building relationships
with those that are not currently in
Pioneer
Apply lessons learned in
communications to new members
joining after 2022
Target 95% participation rate for
members joining after 2022 Customer loyalty
OBJECTIVE: Community Advisory Committee representation
Task Measure Outcome
Active recruitment to diversify the
committee
75% of Members Agencies
represented on the Committee
Programs ideas that represents as
much of our territory as possible
OBJECTIVE: Support local energy procurement
Task Measure Outcome
Utilize BioMAT program and Local Feed-In Tariff to incentive investment in regional energy projects
Engage in three Power Purchase
Agreements with local sourced
renewable energy projects in the next
three years
Mitigates wildfire risk, provides reliable
energy, and creates regional jobs
OBJECTIVE: Advocate for our Members on energy issues
Task Measure Outcome
Advocate for our members through the
legislature and the CPUC
(1) Fund lobbyist to represent our
issues at the legislative area, with an
emphasis on support for biomass; (2)
Utilize our trade association CalCCA
Service territory feels Pioneer
represents them at the CPUC and in
Sacramento on the issues that are
important to them
OBJECTIVE: Build Regional partnerships
Task Measure Outcome
Representation with our Member
Agencies Chambers
100% participation in Member
Agencies Chambers of Commerce
Strengthens Pioneer with the
business community
Strategic partnerships with regional
organizations
Engage with Rural Counties
Representatives of California, League
of Cities, and similar organizations
Aligns Pioneer within the Region
Engage with Economic Development
organizations in our territory
Be part of the team that incentivized
the location of a business from outside
our service territory
Utilize Green100 and competitive and
stable rates to create local jobs
Agenda Item: 6 Agenda Date: 7/18/2024
STRATEGIC GOAL: GREAT PLACE TO WORK
OBJECTIVE: Position Pioneer as an employer of choice
Task Measure Outcome
Conduct triennial compensation study
All positions within Pioneer are
targeted to be at the 75th percentile
of the median
Attract & retain
Form an Ad Hoc Committee of Board
Members to review Salary Ranges,
COLA adjustments and evaluate
benefits enhancements
Compare salary ranges and COLA
adjustments based on the current
market
Maintains relevance of our health and
welfare packet
OBJECTIVE: Alignment of culture with employees
Task Measure Outcome
Conduct an annual survey of all
employees
Achieve an 80% of neutral to satisfied
score from employees
Gauge to determine if the culture or
management's objectives are aligning
with the employees
OBJECTIVE: Pioneer supports a culture of employee engagement Task Measure Outcome
Volunteer in the Community Achieve an agency wide minimum of 100 volunteer hours per year Supports community engagement Employee appreciation events
throughout the year
Host appreciation events of the
employees that supports at least 75%
of all employees participating
Supports a recognition of our
employees
OBJECTIVE: High Performing Workforce
Task Measure Outcome
Fund in the budget resources for
employees to further their
professional development
All employees engage in 10 hours per
year in industry related education
event
Establishes knowledge management
processes that align with official
policies and best practices to ensure
effective workforce planning
Employees continually learn and
become of aware of issues and skills
outside their set of responsibilities
Pioneer host at least one education
event available to all employees
related to our industry
Continuous improvement in employee
development and diversification of
skills
Agenda Item: 6 Agenda Date: 7/18/2024
STRATEGIC GOAL: FISCALLY STRONG & RESILIENT
OBJECTIVE: Maintain Investment Grade Credit Rating
Task Measure Outcome
Adopt budgets that maintains
Pioneer's A- Credit Rating
(1) Exceed minimum of 160 expense
coverage days; (2) Exceed Global
S&P's Fixed Coverage Ratio; (3)
Exceed Global S&P's Debt Ratio
Pioneer's credit rating is a mark of
pride but also very important in
negotiations for power supply. These
measures will not only maintain but
build the case for an upgrade to an A
rating in the future.
OBJECTIVE: Financial Integrity and Transparency
Task Measure Outcome
Annual financial audit from
Independent Auditor
Audit is free of material weaknesses
and significant deficiencies
Integrity with our stakeholders,
partners, and ratepayers
Annually review financial policies
Staff reports to the Audit & Finance
Committee annually on results of
review of financial policies
As our business continually changes,
ensures our policies are current
OBJECTIVE: Expansion of Pioneer's service territory
Task Measure Outcome
Research potential new members to
ensure there is agreement with
Pioneer's goals and objectives
Confirm potential new members
prioritize ratepayer savings, biomass,
and local economic development
Ensure expansion is not introducing
conflict to the Board
Conduct an Impact Assessment Study Projected revenues from new territory must cover projected costs to serve
Avoid current ratepayers subsidizing
expansion
OBJECTIVE: Community reinvestment
Task Measure Outcome
Fund sponsorships in the budget
Strategic approach to sponsorships
that improves Pioneer's brand and
impact to the community
Strengthen Pioneer's position as
community partner
Local investment through energy and
non-energy procurement
(1) Preference to suppliers located in
our service territory through the RFP
process; (2) Diversify procurement
through local partnerships when
feasible
Invest in the communities we serve
OBJECTIVE: Balanced approach to rate-setting
Task Measure Outcome
Annual review of Pioneer's rates with
the Board
When feasible, rate-setting should
provide value to the ratepayer
through a discount to PG&E and
equally improve reserves of Pioneer
Pioneer's rates support the long-term
health of the agency while providing
value to our ratepayers
Agenda Item: 6 Agenda Date: 7/18/2024
STRATEGIC GOAL: EXCEPTIONAL CUSTOMER EXPERIENCE
OBJECTIVE: Stable & Competitive Rates
Task Measure Outcome
Rate setting that covers cost of
service and is competitive to PG&E's
generation rate
Pioneer's rates are competitive to
PG&E's generation rate
Supports the mission of ratepayer
savings
Rate setting with a long-term view so
rates are adjusted as few times as
possible
Rates should be adjusted a maximum
of once per year
Supports our ratepayers, especially
business customers, with stability in
their rates
OBJECTIVE: Launch energy efficiency programs
Task Measure Outcome
Develop, fund, market and launch
programs
Programs should (1) Improve our
customers' lives; (2) Will not impact
rates; (3) Enhance the partnership
with our customers; (4) Supports grid
reliability
Programs is a channel to build value
with our customers beyond rate
savings
OBJECTIVE: Responsiveness to customer's needs
Task Measure Outcome
Hold Calpine and Customer Care staff
accountable to answering customer
inquiries
80% of all calls answered within 45
seconds Improved customer experience
Coordinate on messaging and provide
talking points to the Calpine call
center in response to various issues
Customer receives same information
from Pioneer staff and the Calpine call
center
Consistency in messaging that builds
trust
OBJECTIVE: Utilize technology to improve the customer experience Task Measure Outcome
Conduct data-driven update of the
website
Focus on website updates to the
areas where customers are visiting
the most
Hot topics are addressed
Expand Chatbot capabilities to provide
analytics on customer inquiries
Chatbot menu expands based on data
to answer our customers questions
online
Customers can avoid phone calls to
get the answers they want
Customer field days
Conduct in-person field days to
various organizations in the
community at least once per month
Relationships are built in-person
rather than online
Research additional technology tools
Collaborate with other Community
Choice Aggregators to explore
technology tools
Efficiency for the customer
OBJECTIVE: Stakeholders become our ambassadors
Task Measure Outcome
Communicate with our stakeholders
about Pioneer's achievements
Provide talking points after Board
meetings to our Board Members to
report out to their Councils Pioneer's
milestone achievements
Customers hear from their elected
officials about Pioneer which is
powerful
In-person reports to our Member
Agencies
Annually visit our Member Agencies at
their Council meetings to report on
Pioneer
Customers hear from us in their
community
Agenda Item: 6 Agenda Date: 7/18/2024
STRATEGIC GOAL: OPERATIONAL OPTIMIZATION
OBJECTIVE: Stable & Competitive Rates
Task Measure Outcome
Rate setting that covers cost of
service and is competitive to PG&E's
generation rate
Pioneer's rates are competitive to
PG&E's generation rate
Supports the mission of ratepayer
savings
Rate setting with a long-term view so
rates are adjusted as few times as
possible
Rates should be adjusted a maximum
of once per year
Supports our ratepayers, especially
business customers, with stability in
their rates
OBJECTIVE: Launch energy efficiency programs
Task Measure Outcome
Develop, fund, market and launch
programs
Programs should (1) Improve our
customers' lives; (2) Will not impact
rates; (3) Enhance the partnership
with our customers; (4) Supports grid
reliability
Programs is a channel to build value
with our customers beyond rate
savings
OBJECTIVE: Responsiveness to customer's needs
Task Measure Outcome
Hold Calpine and Customer Care staff
accountable to answering customer
inquiries
80% of all calls answered within 45
seconds Improved customer experience
Coordinate on messaging and provide
talking points to the Calpine call
center in response to various issues
Customer receives same information
from Pioneer staff and the Calpine call
center
Consistency in messaging that builds
trust
OBJECTIVE: Utilize technology to improve the customer experience Task Measure Outcome
Conduct data-driven update of the
website
Focus on website updates to the
areas where customers are visiting
the most
Hot topics are addressed
Expand Chatbot capabilities to provide
analytics on customer inquiries
Chatbot menu expands based on data
to answer our customers questions
online
Customers can avoid phone calls to
get the answers they want
Customer field days
Conduct in-person field days to
various organizations in the
community at least once per month
Relationships are built in-person
rather than online
Research additional technology tools
Collaborate with other Community
Choice Aggregators to explore
technology tools
Efficiency for the customer
OBJECTIVE: Stakeholders become our ambassadors
Task Measure Outcome
Communicate with our stakeholders
about Pioneer's achievements
Provide talking points after Board
meetings to our Board Members to
report out to their Councils Pioneer's
milestone achievements
Customers hear from their elected
officials about Pioneer which is
powerful
In-person reports to our Member
Agencies
Annually visit our Member Agencies at
their Council meetings to report on
Pioneer
Customers hear from us in their
community
Agenda Item: 6 Agenda Date: 7/18/2024
Core Values
STRATEGIC PLAN
The report supports the development of the 2024-2027 Strategic Plan.
FISCAL IMPACT
There is no fiscal impact with this report.
ATTACHMENTS
1. 2021-2024 Strategic Plan
INTEGRITY We honor our commitments and strive to maintain the trust of our community PROFESSIONALISM We execute our responsibilities with courtesy, efficiency, dedication, responsiveness, and accountability
RESPECT We value the diverse talents, rights, and perspectives of our customers and colleagues HUMOR We have fun and promote a positive work environment TEAMWORK We recognize that "Together Everyone Achieves More" and promote collaboration with employees, customers, and business partners
CONTINUOUS IMPROVEMENT We seek opportunities to enhance customers satisfaction, operational efficiency, and professional grow th
PIONEER CORE VALUES
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
Staff Report – Item IV-B
To: The Governing Board
From: Donald Eckert, Chief Executive Officer
Item IV-B: CEO Report
Date: 7/18/2024
PERSONNEL
The following are active recruitments:
1. Power Contracts Manager
2. Information Technology Analyst
3. Project Development Manager
CHIEF EXECUTIVE OFFICER AGREEMENTS EXECUTED (NON-POWER SUPPLY) The following agreements have been executed by the Chief Executive Officer, consistent with the authority delegated by the Board:
• Capital Network Solutions, Microsoft SQL Server Development related to Quants Modeling & Analysis work at a cost of $3,600 for project service labor and $850 monthly service for 12 months, effective June 21, 2024.
AUGUST IS DARK
A reminder that August will be “dark” with no Board or Committee meetings scheduled. A special meeting can always be called if emergency business arises.
RECENT HEAT WAVE
The recent heat wave experienced in Northern California was intense in both temperatures and duration. The increase in electricity demand resulted in exposure in the real-time market. However, a strong hydro year and moderate temperatures in Southern California did not stress the electric grid or cause extended volatile pricing.
There were no Public Safety Power Shut-Off events in our service territory. However, an equipment outage failure outage in Rocklin occurred on July 6th, affecting nearly 4,000 accounts and lasted approximately two hours. At least three short outages also affected service in El Dorado Hills.
EL DORADO IRRIGATION DISTRICT (“EDID”) HYDROELECTRIC TOUR EDID has offered Pioneer Board Members and staff a tour of their hydroelectric facilities during the last two weeks of October during their planned outage period. A poll will be sent out to the Board to gauge interest and determine the best time. Details to follow later this year.
BIOMASS SYMPOSIUMN
Staff also attended the Biomass Symposium hosted by Placer County Water Agency (“PCWA”). The event was informative and entertaining with excellent networking opportunities to further the biomass cause. We appreciate PCWA hosting the event as well as Vice-Chair Ivy and Alternate Director Parlin opening the event with comments and partaking in the first panel discussion.
Plf)NEER
COMMUNITY ENERGY
Agenda Item: IV-B Agenda Date: 7/18/2024
PLACER COUNTY FAIR
Staff were excited to be part of the Placer County Fair this year. It was well attended and a great channel to engage with the community. Pioneer also sponsored the Rib Cook-Off Event.
JOINT RATE MAILER
The CPUC granted an extension for completion of the annual Joint Rate Comparison mailer, which offers residential customers a side-by-side comparison of Pioneer and PG&E rates. The mailer usually has a July 1 deadline, but due to an industry-wide delay in receiving Renewable Energy Certificates (RECs) through the Western Renewable Energy Generation Information System (WREGIS), many CCAs (including Pioneer) are unable to accurately compute our respective generation portfolio contents. Staff is working closely with PG&E to prep the other information needed for the mailer so that this piece can be created quickly and efficiently completed once the needed information is received.
Agenda Item: IV-B Agenda Date: 7/18/2024
QUARTERLY SPONSORSHIP REPORT
The following table shows the sponsorship activity for the fiscal year:
CHIEF EXECUTIVE OFFICER POWER SUPPLY CONTRACTS EXECUTIED The following agreements have been executed by the Chief Executive Officer, consistent with the authority delegated by the Board:
Presentations and Relevant Meetings attended by the Chief Executive Officer
1. Participated in CalCCA Weekly/Monthly Board meetings.
2. Participated in Placer County Water Agency’s Biomass Symposium
3. Participated in Rocklin’s State of the City
4. Presented to the City of Sonora regarding expansion
5. Presented to the Town of Paradise regarding expansion
ATTACHMENTS
1. Agenda Planning Document
2. Legislative and Regulatory Report
3. Communications Report
4. Programs Report
Date
Member
Community Vendor Special Event Amount
7/1/2023 Grass Valley Grass Valley Chamber 2023 Independence Day $500 7/14/2023 Lincoln City of Lincoln
2nd Annual Lincoln Airport Open House &
Family Festival 750
9/14/2023 Auburn Mandarin Orange Education Foundry 2023 Annual Mountain Mandarin Festival 1,400 9/21/2023 Auburn Auburn Chamber of Commerce 2023 State of the Community 1,000 9/27/2023 Loomis Loomis Basin Chamber Of Commerce Loomis 2023 Eggplant Festival 750 1/31/2024 Rocklin Rocklin Area Chamber of Commerce
Government Relations Committee
Meeting 750
1/31/2024 El Dorado County El Dorado Hills Chamber of Commerce 2024 Annual Business Walk 1,000 2/6/2024 Loomis
League of California Cities - Sacramento
Valley Division March Division Meeting 1,400
2/29/2024 Lincoln Lincoln Potters Baseball Club, Inc. 2024 Season Partnership 2,000 3/28/2024 Grass Valley
Sierra Nevada Memorial Hospital
Foundation 2024 Starry Starry Nights 1,500
3/31/2024 Rocklin Rocklin Area Chamber of Commerce 2024 State of the City 1,000 4/8/2024 Nevada City Nevada City Chamber of Commerce Earth Fest 2024 250 4/22/2024 Lincoln Lincoln Area Chamber of Commerce
Business Roundtable - April District
Meeting 1,000
4/29/2024 Statewide
Mountain Counties Water Resources
Association 2024 Legislative Advocacy Day 250
4/30/2024 Rocklin Sierra College Foundation
2024 Sierra Workforce Summit -
Breakfast 2,500
5/16/2024 Statewide
Rural County Representatives of
California 2024 RCRC Annual Meeting 7,500
5/31/2024 El Dorado County El Dorado County Fair 2024 El Dorado County Fair 5,250 6/12/2024 Auburn Auburn Chamber of Commerce 2024 State of the Community 275 TOTAL FY 2024 EXPENSES: $29,075
Counterparty Name
Execution
Date Type Product Start Date End Date Notional Value
WGP Redwood Holdings, LLC 6/14/2024 Buy Pioneer South System 1/1/2026 12/31/2030 $42,307,800 Agenda Planning Document – Pioneer Community Energy Updated 7-12-2024
BOARD OF
DIRECTORS
JULY 18, 2024
REGULAR MEETING
3:00 PM
(Post Agenda: July 12)
SEPTEMBER 19, 2024
REGULAR MEETING
3:00 PM
(Post Agenda: September 13)
OCTOBER 24, 2024
REGULAR MEETING
3:00 PM
(Post Agenda: October 18)
IN THE FUTURE
General Function I EID tour
Agenda Review Agenda Review Agenda Review
Consent 1a Minutes for Approval-JUNE 20, 2024 Minutes for Approval-JULY 18, 2024 Minutes for Approval-SEPT 19, 2024 1b Receive Draft Financials: MAY 2024
(Koehn)
RES Power Content Label
(Stassi-Vanacore)
Receive Draft Financials: AUGUST 2024
(Koehn)
(DEC) RES Adopt 2025 Governing Board
Meeting Schedule (Eckert)
1c RES EE welfare & benefit
modifications (Koehn)
Annual Joint-Rate Mailer
(Stassi-Vanacore)
1d
1e
Regular 2 Pioneer Legislative Policy Update/
Lobbyist Introduction & Capitol Report
(action-Kang) guest
RES approving FY 2024-2027 Strategic
Plan (action-Eckert) Kim Tucker
RES Marketing Contract
(action - Stassi-Vanacore)
ICE Energy (Kang)
3 RES approving cQuant contract
(action-Kang) guest
Update on Expansion – approve 45-day
notice (NOV meeting)
(action-Eckert) PEA
RES Integrated Resource Plan (IRP)
(action-Kang)
AgFIT program (Stassi-Vanacore)
EV Energy programs (Stassi-Vanacore)
4 Summer Rates (action-Eckert) Participate.Energy / Pioneer Economic Review (action- Stassi-Vanacore) guest
RES Revised NEM Policy (action-Koehn) Community Choice Power membership (action-Eckert)
5 Power Supply-State of the Markets
(discussion-Kang)
Receive Financial Review for FY ending
June 30, 2024 (discussion-Koehn)
6 FY 2024-2027 Strategic Plan –
Approval in Form with formal
adoption in September (action-Eckert)
Revised 2nd Amended & Restated JPA
(Eckert)
7 (DEC) RES Board Member Recognition
(action-Eckert)
General Function II Chief Executive Officer’s Report
REG Reports: Leg/Reg; Programs;
Community Engagement; personnel intro;
QTRLY Updates: Strategic Plan,
Sponsorship Activity
Chief Executive Officer’s Report
REG Reports: Leg/Reg; Programs;
Community Engagement;
Chief Executive Officer’s Report
REG Reports: Leg/Reg; Programs;
Community Engagement;
QTRLY Updates: Sponsorship Activity
Chief Executive Officer’s Report
-QTRLY Updates requested by the Board
JAN – APR – JULY – OCT
Strategic Plan Objectives
Sponsorship Activity
Informational Items
Glossary of Terms
Informational Items
Glossary of Terms
Informational Items
Glossary of Terms
_CJ
-
-
C
Agenda Planning Document – Pioneer Community Energy Updated 7-12-2024 AUDIT/FINANCE COMMITTEE TO BE SCHEDULED – MID SEPTEMBER in-person & remote locations
IN THE FUTURE
Greg Janda, Chair
John Hidahl, Vice Chair
Gary Petersen
David Ring
Audit Kick Off
ENERGY PROCUREMENT REVIEW
AD HOC COMMITTEE TO BE SCHEDULED – OCTOBER
zoom only
IN THE FUTURE
Greg Janda, Chair
Gary Petersen, Vice Chair
Alice Dowdin Calvillo
John Hidahl
ICE Energy
Biomass projects
EXPANSION
AD HOC COMMITTEE TO BE SCHEDULED – EARLY SEPTEMBER
zoom only
IN THE FUTURE
Alice Dowdin Calvillo, Chair
David Yarbrough, Vice Chair
Jim Holmes
Impact Assessment Studies
COMMUNITY ADVISORY COMMITTEE
TO THE EXECUTIVE DIRECTOR AUGUST 28, 2024 IN THE FUTURE Meets on the 4th Wednesday
(even-numbered months)
OCTOBER 23
DECEMBER 11
=
FEBRUARY 26
APRIL 23
JUNE 25
Attachment 2: Legislative and Regulatory Update
Date: 7/18/2024
Legislative Affairs
• Pioneer submitted a letter of support for AB 2787 (Joe Patterson) which would ease the solar requirements for property owners that have lost their homes due to a wildfire. It has passed the Assembly and is currently in the Senate Committee on Appropriations. • Pioneer drafted a support letter for AB 2902 (Wood) which would, among other things, require CalRecycle to exclude residents included in department-issued low population or elevation waivers from the population in determining a local jurisdiction’s organic waste procurement target. The bill passed the Assembly and is currently in the Senate Committee on Environmental Quality. • Pioneer submitted a letter of support for SB 867 (Becker) which would provide funding for clean air and water infrastructure and programs, through a $10 billion Climate Bond. The bond contains $50 million specifically allocated to the Department of Conversation for an existing pilot program to convert forest biomass into carbon-negative biofuels. The bill has passed through the Assembly and Senate and has been approved by the Governor.
• CalCCA’s Legislative Committee has voted to send two bills to CalCCA’s Board to support:
o AB 3246 (Garcia) would streamline the approval process for advanced reconductoring of transmission lines. The current process for advanced reconductoring requires IOUs to go through a lengthy process to obtain a permit to construct. This bill would allow IOUs to receive expedited approval through the informal advice letter process. Advanced reconductoring involves switching out aluminum conductors for smaller composite core conductors which can operate at higher temperatures, reducing wildfire risk. o SB 59 (Skinner) would authorize the California Air Resources Board (CARB), in consultation with the CPUC and CEC, to require any weight class of battery electric vehicle (BEV) to be bidirectional capable, if their studies revealed a compelling use case that would benefit BEV operators and the electrical grid. This bill requires CARB to examine the effects of bidirectional charging on the electrical grid to determine technology requirements, and periodically update these requirements to account for future innovation.
Regulatory Proceedings
Below is a summary table of the key issues, followed by further detail on activities since our last Board Meeting on a few ongoing priority Pioneer regulatory Proceedings and matters. More updates will follow at future Board meetings as regulatory proceedings and matters evolve.
Proceeding Issue Pioneer Position
R.22-07-005 Order Instituting Rulemaking
(OIR) to advance Demand
Flexibility through electric rates
Limit negative impacts of the
Income Based Graduated Fixed
Charge and educate Pioneer
Board and customers prior to
the rollout.
R.22-10-010 Order Instituting Rulemaking to
Implement AB 843 (2022) –
The Bioenergy Adjusting Tariff
Program
Expeditiously implement AB
843 to allow CCA access to the
BioMAT program for future
subsidies for biomass
procurement
Plf)NEER
COMMUNITY ENERGY
Attachment: 2 Agenda Date: 7/18/2024
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 the implementation of AB 843. • April 28, 2023- Workshop held.
• 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 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).
• February 23, 2024- CalCCA submitted a 15-day extension until March 14 to meet the requirement for the central BioMAT Accion webpage and standard framework for individual CCA webpages within 90 days of the decision due to an issue raised by Accion in the third-party administrator Statement of Work that the CCAs, IOUs, and Accion are attempting to resolve.
Attachment: 2 Agenda Date: 7/18/2024
• February 25, 2024- RCRC submitted reply comments in support of the Joint CCAs proposal to consider extending the BioMAT program sunset date.
• 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 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. • On March 13, 2024- CalCCA submitted a second request for extension of time for an additional 15-day extension.
• March 20, 2024- CPUC granted CalCCA’s first request for a 15-day extension of time. • March 21, 2024- There was a meeting with CPUC staff on implementation of AB 843. Brad Hill will be moving over to Natural Resources Agency.
• March 28, 2024- Assembly Member Aguiar-Curry submitted a letter of support to the CPUC for the extension of the BioMAT program. This letter included the support of other legislators: Senator Alvarado-Gil, Senator Dahle, Senator Talamantes Eggman, and Assembly Member Dahle. • March 28, 2024- CalCCA submitted a third request for extension of time for an additional 31-day extension of time (until April 29) for the central BioMAT Accion webpage and standard framework for individual CCA webpages to be completed within 90 day of the effective date of the decision. Work has been delayed pending final agreement from all parties to revisions to the third-party administrator Statement of Work. • April 4, 2024- There was a prehearing conference to address the preliminary scope of issues in the OIR for IRP where the Joint CCAs are asking for an extension of the BioMAT program. During this conference, Scott Blaising represented the Joint CCAs and asked for 1) the CPUC to expedite the extension of the BioMAT program and 2) broadly review the program.
• May 1, 2024- CPUC approved the joint CCAs Tier 2 Advice Letter which approved the BioMAT standard program documentation which included the tariff, the pro-forma power purchase agreement, program participation request forms, BioMAT program website and portal development contracts, independent third-party contracts, initial balancing account statements, and non-bypassable charge rate scheduled. • Pioneer has completed the implementation of the BioMAT program. The website and all necessary documents for BioMAT are live.
• June 20, 2024- CPUC issued a Draft Resolution to approve participating CCAs’ forecast revenue requirements, which is $0 for 2024-2026 for all participating CCAs, since no BioMAT projects are forecasted to COD before then.
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.
Attachment: 2 Agenda Date: 7/18/2024
• 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 26, 2024- The CPUC approved the expanded pilots revised decision. In D.24-01-032 to Advance Demand Flexibility Through Electric Rates, the CPUC directed PG&E to expand the Valley Clean Energy Ag Real Time Pricing Pilot (VCE AgFIT Pilot). The decision orders PG&E to extend the duration and expand participation of the VCE AgFIT Pilot to agricultural customers throughout PG&E’s service territory. • 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. • 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). • March 25, 2024- PG&E submitted their Tier 2 AL for implementation plans for PG&E’s Expanded Ag Pilot. 5 CCAs have expressed an interest in participating in PG&E’s Ag Pilot in 2024 (Ava, SVCE, VCE, 3CE, and Pioneer). PG&E will launch the pilot in June of 2024. Participants will continue to pay their current bill and will receive the shadow bill, which they will not pay. The shadow bill will illustrate a customer’s potential savings under the dynamic pilot rate. There is also a $20 per unbundled kW per year incentive, subject to a $1.8 million cap for all CCA incentives.
• March 27, 2024- The CPUC issued a proposed decision addressing AB 205 (Income Graduated Fixed Charge) requirements for electric utilities. The earliest this proposed decision could be adopted is May 9, 2024. This decision authorizes all IOUs to shift the recovery of a portion of fixed costs from volumetric rates to a separate, fixed amount on bills without changing the total costs that utilities may recover from customers.
As a result, this decision reduces the volumetric price of electricity (in cents per kilowatt hour) for all residential customers of IOUs. The CPUC did not adopt the IOUs’ proposal and instead the proposal would have Tier 1 (customers enrolled in CARE) pay $5 a month, Tier 2 (customers enrolled in FERA or who live in affordable housing restricted to residents with incomes at or below 80% of Area Median Income) pay $12 a month, and Tier 3 (all other customers) pay $24.15 per month. This new billing structure would apply to all residential rates of the IOUs, except for master-meter rates that are not sub-metered. • May 9, 2024- CPUC approved implementation of the Income Graduated Fixed Charge without any changes to the structure described in the previous bullet.
Attachment: 2 Agenda Date: 7/18/2024
• June 12, 2024- CalCCA filed reply comments on the RA Track B Ruling, urging the CPUC to reconsider the process for updating marginal cost values and to clarify a cost recovery structure that ensures CCA customers do not get double-charged for being unbundled.
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. • Week of April 22, 2024- Pioneer will send a postcard to all customers impacted or potentially impacted by the Solar Billing Plan. Themed as “Top 5 Things to Know About the Sollar Billing Plan,” this mailer clarifies information provided in PG&E’s required mailers and will arrive before customers receive bills that reflect changes due to the Solar Billing Plan. Roughly 175 customers in Pioneer’s service area will be immediately affected. The mailer will go to all 723 customers with interconnection applications pending, as well as those who will see billing changes over the next year (about 1,800).
PG&E ERRA Compliance and ERRA Forecast:
• The ERRA Proceedings act as a review of an IOU’s prior year portfolio management and accounting and seeks to identify errors and discrepancies between PG&E’s revenue requirements vis-à-vis collected revenues through the IOUs’ General Rate Case (GRC) which ultimately affects CCA rates through the Power Charge Indifference Adjustment (PCIA).
• May 14, 2023- PG&E’s 2023 – 2024 ERRA Forecast and Testimony was released. • June 1, 2023- NewGen sent over the new rate forecast spreadsheet. The forecast looks good with the PCIA remaining negative over many vintages, but this will change before the October Update. • June 16, 2023- Keyes and Fox filed a Protest to PG&E's Forecast Application. • August 10, 2023- CalCCA filed a Protest to PG&E’s ERRA Trigger Application proposing a rate increase in November to correct and account for under-collections.
Attachment: 2 Agenda Date: 7/18/2024
• 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.
• March 21, 2024- There was a Preliminary Issue Review with Keyes and Fox. 2021 ERRA proceeding is still open but coming to an end, 2022 is still busy and 2023 is just starting up. Some of the big issues to watch include PG&E’s RA Sales and Accounting; DWR reimbursement to PG&E; and Retained, Sold and Unsold RPS. • June 12, 2024- The Assigned Commissioner issued the Scope Ruling in PG&E’s 2023 ERRA Compliance proceeding. The ruling does not adopt CalCCA’s recommendation to expressly clarify that the reasonableness of PG&E’s record year RA activities and sales is within the scope of this proceeding. It excludes the RA scoping issue out of this proceeding altogether, possibly in hopes the issue will be settled in PG&E’s 2022 ERRA Compliance proceeding. The Scope Ruling also lays out the procedural schedule. NewGen and Keyes & Fox will continue to work on discovery and reconvene with CalCCA before Intervenor testimony is due in September.
• June 17, 2024- CalCCA filed a protest to PG&E’s 2025 ERRA Forecast application. In this proceeding, the 2025 levels for the PCIA will be established. Due to forecasted low brown energy prices and high RA prices, the PCIA is expected to decrease, which will result in increased generation rates for PG&E’s bundled customers. PG&E’s 2025 ERRA Forecast application proposes a new ratemaking method to ensure reasonable rates for bundled ratepayers, by freezing the RA market price benchmark (MPB) at its 2024 forecast level, rather than using the 2025 forecast or the 2024 actual RA MPBs. CalCCA responded, urging the Commission against considering these broad policy questions, which fall outside the scope of the ERRA Forecast proceeding. CalCCA also argues that implementing an RA value cap would inappropriately inflate PCIA rates, shifting costs to unbundled customers, in violation of the PCIA ratemaking framework that has been established.
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.
Attachment: 2 Agenda Date: 7/18/2024
• June 19, 2023- CalCCA filed reply comments on June 19, 2023. • June 27, 2023- a Redlined PD was issued. The revisions included: adopting a one percent minimum threshold for RA deficiencies that would limit CCA expansions; clarifying that if an LSE “cures” its year-ahead RA deficiency in the month-ahead timeframe, the year-ahead deficiency will not be applied to the expansion requirement.
• June 29, 2023- The PD was adopted by the Commission.
• July 26, 2023- CalCCA and CCCE filed two Applications for Rehearing (AfR) of the decision to limit CCA expansion for two years due to uncured RA deficiencies. CalCCA’s PfR cited a lack of CPUC statutory authority to limit CCA expansion, and that it gives itself new unauthorized powers to needlessly discriminate against CCAs to prevent their growth; it also asserted, that without credible evidence, the CPUC determined that addition of new CCA load would be detrimental to grid reliability, and that the decision violates the CPUC’s legal requirement to apply RA enforcement measures in a nondiscriminatory manner, not just to CCAs.
• October 5, 2023- CalCCA filed a Petition for Writ of Review of Resolution E-5258 and D.23-08-052 over the decision with the First Appellate District.
• On September 19, 2023, PG&E and SCE submitted their annual CPE reports. PG&E is short RA for all months - up to 4,400 MW.
• October 12, 2023- The Commission opened the new RA proceeding through its Order Instituting Rulemaking (OIR). The OIR proposes the scope, schedule, and administration of this next RA proceeding. • November 9, 2023- CalCCA submitted comments recommending additional scoping items for the RA proceeding, including additional refinements to the RA program for the local RA CPE, compliance and penalty structure, SOD transactability, and RA import rules.
• 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 SOD implementation from 2025 until 2026 because the showing and compliance tools are not working properly. • March 22, 2024- CalCCA submitted comments on the RA Program with regards to considering RA reforms and refinements and establishing forward RA procurement obligations. CalCCA believes the focus should be to adopt proposals that protect customers against excessive RA costs and increase RA capacity availability. • March 22, 2024- The CPUC issued a response to CalCCA’s Writ Petition #2 and denied that a writ should be issued. Comments are due May 16.
• June 6, 2024- CalCCA filed comments on the CPUC’s RA Track 1 Proposed Decision (PD), regarding key issues with SOD implementation. CalCCA emphasized how customer affordability will be put at risk due to the hourly transactability issue, and the CPUC’s refusal to delay SOD implementation or offer system RA waivers. The comments also included a host of other issues including the CPUC’s insistence on using a higher than necessary planning reserve margin (PRM), exclusion of existing resources in cure period Attachment: 2 Agenda Date: 7/18/2024
extensions, restrictions on the amount of RA imports allowed, and concerns about the resource counting methodology.
• June 14, 2024- CalCCA filed comments on the Assigned Commissioner’s Scoping Memo and Ruling on Track 2, proposing an adjustment of the central procurement entity (CPE) timeline. Currently, the Commission authorizes the CPE to procure local RA until 2 months before LSEs must submit their year-ahead RA showings. This leaves LSEs with limited time to fill their shortages in response to CPE allocation. CalCCA’s proposal urges the Commission to require the CPE provide their LSEs with their local RA allocations at least 1 year prior to their year-ahead RA filings.
• June 20, 2024- The CPUC issued a decision to adopt local capacity requirements for 2025-2027, flexible capacity requirements for 2025, and refinements to the RA program as scoped in Track 1. The Commission maintains that the 2025 RA compliance year will be the first year for the new SOD framework, but remains open to considering hourly transactability after implementation, should any issues arise.
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
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.
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.
Attachment: 2 Agenda Date: 7/18/2024
• 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. • March 14, 2024- the CPUC came out with a proposed decision. April 18 is the first opportunity the CPUC could adopt the decision. The proposed decision has a mix of favorable and unfavorable decisions. For example, it rejected PG&E’s proposal to require FSR postings to reflect 2 months of POLR service, it maintains the ability to use service bonds, and it keeps confidential the information about LSEs that trigger financial monitoring. However, the proposed decision also approved using PG&E’s Administrative Fee ($4.24) without sufficient evidence of the costs, the CPUC should clarify that November 2024 FSR Calculation would be the earliest possible calculation under the new rules, and the CPUC should clarify the timing of the second tier of reporting requirements so CCAs know when to evaluate their metrics. The biggest issue the proposed decision addressed was updating the FSR requirements. The minimum remains $147,000, but now CCAs must use the IOU’s Administrative and multiply that figure by the number of accounts the CCA has.
The higher of that amount or the $147,000 will be the new FSR. For CCAs that are in PG&E’s territory the administrative fee is $4.24 per customer, while the other IOUs’ administrative fees are significantly less (around $.50 per customer). If the final decision requires CCAs within PG&E’s service territory to use PG&E’s administrative fee, all CCAs within PG&E’s service territory will likely be paying an FSR well over the $147,000 minimum.
• April 23, 2024- CPUC adopted a revised POLR Decision inclusive of several of CalCCA’s requests.
Specifically:
o Reducing RA costs in the FSR by accounting for returning CPE RA allocations, in addition to the CAM and DR RA allocations.
o Nets PCIA in the FSR whether the PCIA is positive or negative. o Affirms current timing for calculating FSRs.
o Provides CCAs with an additional 60 days to file first FSR following IOU tariffs implementing this decision.
o Requires CCAs to file the Tier 1 audited financial report to Energy Division once a year, in January or July, whichever comes earlier relative to the availability of the audited financial statement.
o Allows 90 days for CCAs to submit joint advice letter on new CCA registration process • July 1, 2024- CalCCA, on behalf of Pioneer, filed a Tier 2 AL to formalize the Financial Monitoring and Reporting Guidance document. The CPUC requires financial reporting to be done on a 2-tier system. Tier 1 requires every CCA to submit an annual audited financial report. Tier 2 requires CCAs to submit additional financial reporting, if certain trigger events such as a change in credit rating occur. This document clarifies the process and procedures CCAs must follow to comply with Tier 2 financial reporting conditions.
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. • March 26, 2024- Pioneer submitted the Board-approved LMS plan. • April 1, 2024- All large CCAs are required to file their plan for compliance with LMS regulations. • April 16, 2024- CEC held a scoping meeting to discuss development of the statewide rate access tool.
Attachment: 2 Agenda Date: 7/18/2024
Discussion on how the tool will be funded are ongoing.
• May 31, 2024- CPUC granted PG&E’s request to delay commencement of enrollment in its dynamic rates pilots from June 1, 2024 to November 1, 2024.
• July 15, 2024- The CEC requires LSEs to jointly develop and submit a Single Statewide Tool (SST) for their review by October 1, 2024. The joint IOUs, led by SDG&E, released a 50-page draft of a proposed model for the SST, and will host weekly workshops to receive input from CCAs and POUs.
Attachment 3: Communications and Outreach Updates
Date: 7/18/2024
Notable Achievements – June 2024:
June marked the conclusion of Pioneer’s 2023-24 paid Expansion and General Awareness campaigns.
Efforts yielded strong results, including:
• Advertising campaigns resulted in a combined 54 million impressions. • Our website experienced a 64% increase in new user traffic and a 61% increase in user sessions compared to FY 2022-23.
• Chatbot had 106,000 sessions, resulting in a steady decrease in calls to the call center. • We discovered that mailers are the top-performing tool for re-enrollment. Utilizing mailers has been the most effective (quickest conversion) means of boosting enrollment and direct contact with Pioneer.
• Successful expansion effort into Grass Valley and Nevada City, far exceeding expectations.
All strategies aligned with Board objectives and focused on building community trust, increasing brand recognition, and boosting community engagement.
Social Media Drives Interest in Programs
Social media posts supporting Pioneer’s newly launched HVAC program had the most impressions (24,001), reach (9,477) and engagement (247) for the month of June. Other top-performing posts included Pioneer’s participation at the Placer County Fair and sponsorship of the El Dorado County Fair Wheelbarrow Races.
Outreach and Engagement:
Staff continued its efforts to engage with customers, stakeholders, and members of the communities we serve through a variety of events, including:
• Retired Public Employees Association presentation: Nevada City • El Dorado County Fair Sponsor: “Wheelbarrow Races” and Fair Banner Sponsor • Lincoln Joint Government Relations Committee Meeting
• Sierra College Workforce Summit, Rocklin
• Retired Public Employees Association presentation: Auburn • Placer County Fair Booth and sponsor of the Rib Cook-Off Plf)NEER
COMMUNITY ENERGY
Come see us at the Placer County Fair! You'll find us inside the Roebbelen Center Building At The Grounds all weekend.
Come visit our Pioneer
booth at the Placer
County Fair inside the
Roebbelen Center!
And, don't miss the
Rib Cook-Off!
PIONEER COMMUNITY ENERGY
Team Pioneer loved seeing everyone at the El Dorado County Fair Wheelbarrow Race! Congralulations to everyone who participated. We hope you enjoyed it as much as we did Shout out to ORHS Cheer and STUNT for this awesome video!
• Attended Placer County Water Association Biomass Symposium • Rocklin Chamber of Commerce State of the City sponsor • Placer Regional Economic Development Stakeholder Call participant • Pioneer Field Days at the Auburn Senior Center
• Starry, Starry Night event sponsor for Sierra Nevada Memorial Hospital • Lincoln Potters 2024 sponsorship
Using Technology to Communicate with Customers:
Website
Traffic on the Pioneer website decreased in June, likely due to the end of our ad campaign, with the most visited pages being the home page, Programs HVAC tune up page and Residential page.
Chatbot
Chatbot activity was quiet in June, averaging just one conversation per day. The decrease in activity likely is due to a lull between NEM payments and high summer bills. # of interactions:
• 11,700
Total Conversations:
• 27
Average conversation length:
• 34 minutes
Customer satisfaction rating
• 5/5
Busiest days/hours:
• Tuesdays from 8-11am
• Thursdays from 12-3pm
Plf)NEER
COMMUNITY ENERGY
VIEWS USERS
10, 904 4,703
100% of 100% of
total total
Pioneer
Community 3,028 1,887
Energy
Pioneer
Community
Energy I 953 552
HVAC Tune-Up
Program
Pioneer ...
Community 367 206 Energy I
Residential
Attachment 4: Program Updates
Date: 7/18/2024
Community Advisory Committee
• The Community Advisory Committee met June 26th.
• The progress of current programs was reviewed along with discussion about what programs should be prioritized and prepared to launch next.
LED Discount
• Conversations with Dollar Tree have been paused due to internal changes within the company. Greenlite, our program partner, is continuing to monitor the changes with Dollar Tree and will resume efforts to enroll stores into the program when applicable.
• Six new stores have been added to the program:
STORE NAME STREET ADDRESS CITY ZIP
CODE
American Cancer Society Discovery Shop 2376 Grass Valley Hwy Auburn 95603 Colfax Thrift 130 N Main St. Colfax 95713
Goodwill 3868 Forni Rd. Placerville 95667
Mt. Aukum Store 8080 Mt. Aukum Rd. Mt Aukum 95656
Snowline Hospice Thrift Store 3300 Coach Ln Cameron Park 95682 Snowline Hospice Thrift Store 3961 El Dorado Rd Placerville 95667 Online Marketplace
• Nine (9) leads have been generated through the Electrum Marketplace; six (6) of the leads were for solar inquiries and three (3) leads were for a battery. • Pioneer has prepared and sent additional outreach materials to local solar contractors encouraging them to become a marketplace partner to increase use of the marketplace and support local businesses.
HVAC Tune-up
• Pioneer has received 143 applications for the tune-up program. • Paid social media ads targeted to our service area are running to promote the rebate program, and the program is being promoted at customer field days and local Chambers of Commerce events.
GridGen
• Layoffs at Tesla have impacted our contract review and approval processes. Consequently, the final contract has not been signed.
• The solar-plus-storage program with Participate.energy and Tesla is expected to launch in August. • A soft launch will target several zip codes in Pioneer’s service area for the first few weeks to identify and resolve any unforeseen issues. The program then will be open to all zip codes within Pioneer’s territory. • All marketing materials, including the webpage, ads, social media posts, flyers, and newsletter content are being drafted to ensure all items are ready at the start of the program.
Uplight/Flexsaver Rewards
• Pioneer’s behavioral demand response program with Uplight is expected to launch in August. • Pioneer and Uplight are working collaboratively to prepare the required data and materials necessary for the program to launch.
• All marketing materials, including the webpage, ads, social media posts, flyers, and newsletter content are being drafted to ensure all items are ready to go at the start of the program.
Plf)NEER
COMMUNITY ENERGY
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Pioneer Community Energy
Glossary of Terms
CAISO - California Independent System Operator - a non-profit independent system operator that oversees the operation of the California bulk electric power system, transmission lines and electricity market generated and transmitted by its members (~80% of California's electric flow). Its stated mission is to "operate the grid reliably and efficiently, provide fair and open transmission access, promote environmental stewardship and facilitate
effective markets and promote infrastructure development. CAISO is regulated by FERC and governed by a five-member governing board appointed by the governor.
CALCCA - California Community Choice Association -Association made up of Community Choice Aggregation {CCA) groups which represents the interests of California's community choice electricity providers.
CARB - California Air Resources Board - The CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change in California.
CEC- California Energy Commission
CPUC - California Public Utility Commission
C&I - Commercial and Industrial - Business customers
CP - Compliance Period -Time period to become RPS compliant, set by the CPUC {California Public Utilities Commission)
DA- Direct Access - An option that allows eligible customers to purchase their electricity directly from third party providers known as Electric Service Providers (ESP).
DA Cap- the maximum amount of electric usage that may be allocated to Direct Access customers in California, or more specifically, within an Investor-Owned Utility service territory.
DA Lottery - a random drawing by which DA waitlist customers become eligible to enroll in DA service under the currently-applicable Direct Access Cap.
DA Waitlist - customers that have officially registered their interest in becoming a DA customer but are not yet able to enroll in service because of DA cap limitations.
DAC - Disadvantaged Community
DASR - Direct Access Service Request - Request submitted by C&I to become direct access eligible.
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Demand - The rate at which electric energy is delivered to or by a system or part of a system, generally expressed in kilowatts {kW), megawatts {MW), or gigawatts {GW), at a given instant or averaged over any designated interval of time. Demand should not be confused with Load or Energy.
DER - Distributed Energy Resource -A small-scale physical or virtual asset {e.g., EV charger, smart thermostat, behind-the-meter solar/storage, energy efficiency) that operates locally and is connected to a larger power grid at the distribution level.
Distribution - The delivery of electricity to the retail customer's home or business through low voltage distribution lines.
DLAP- Default Load Aggregation Point- In the CAISO's electricity optimization model, DLAP is the node at which all bids for demand should be submitted and settled. Pioneer settles its CAISO load at the PG&E DLAP as Pioneer is in the PG&E transmission access charge area.
DR - Demand Response - An opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.
DWR - Department of Water Resources - DWR manages California's water resources, systems, and infrastructure in a responsible, sustainable way.
ELCC- Effective Load Carrying Capacity -The additional load met by an incremental generator while maintaining the same level of system reliability. For solar and wind resources the ELCC is the amount of capacity which can be counted for Resource Adequacy purposes.
EPIC - Electric Program Investment Charge -The EPIC program was created by the CPUC to support investments in clean energy technologies that provide benefits to the electricity ratepayers of PG&E, San Diego Gas & Electric Company {SDG&E), and Southern California Edison Company {SCE) ERRA - Energy Resource Recovery Account - ERRA proceedings are used to determine fuel and purchased power costs which can be recovered in rates. The utilities do not earn a rate of return on these costs, and only recover actual costs. The costs are forecast for the year ahead. If the actual costs are lower than forecast, then the utility gives money back, and vice versa.
ESP- Energy Service Provider - An energy entity that provides service to a retail or end-use customer.
EV - Electric Vehicle
GHG - Greenhouse gas - water vapor, carbon dioxide, tropospheric ozone, nitrous oxide, methane, and chlorofluorocarbons (CFCs). A gas that causes the atmosphere to trap heat radiating from the earth. The most common GHG is Carbon Dioxide, though Methane and others have this effect as well.
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GRC- General Rate Case - Proceedings used to address the costs of operating and maintaining the utility system and the allocation of those costs among customer classes. For California's three large IOUs, the GRCs are parsed into two phases. Phase I of a GRC determines the total amount the utility is authorized to collect, while Phase II determines the share of the cost each customer class is responsible and the rate schedules for each class. Each large electric utility files a GRC application every three years for review by the Public Advocates Office and interested parties and approval by the CPUC.
GWh - Gigawatt-hour - The unit of energy equal to that expended in one hour at a rate of one billion watts. One GWh equals 1,000 megawatt-hours.
IEP - Independent Energy Producers - California's oldest and leading nonprofit trade association, representing the interest of developers and operators of independent energy facilities and independent power marketers.
IOU - Investor Owned Utility- A private electricity and natural gas provider.
IRP- Integrated Resource Plan -A plan which outlines an electric utility's resource needs in order to meet expected electricity demand long-term.
kW - Kilowatt - Measure of power where power (watts)= voltage (volts) x amperage (amps) and 1 kW= 1000 watts
kWh - Kilowatt-hour - This is a measure of consumption. It is the amount of electricity that is used over some period of time, typically a one-month period for billing purposes. Customers are charged a rate per kWh of electricity used.
LCFS- Low Carbon Fuel Standard -A CARB program designed to encourage the use of cleaner low-carbon fuels in California, encourage the production of those fuels, and therefore, reduce greenhouse gas emissions.
LCR - Local (RA) Capacity Requirements -The amount of Resource Adequacy capacity required to be demonstrated in a specific location or zone.
LMP - Locational Marginal Price - Each generator unit and load pocket is assigned a node in the CAISO optimization model. The model will assign a LMP to the node in both the day- ahead and real time market as it balances the system using the least cost. The LMP is comprised of three components: the marginal cost of energy, congestion, and losses. The LMP is used to financially settle transactions in the CAISO.
Load - An end use device or customer that receives power from an energy delivery system. Load should not be confused with Demand, which is the measure of power that a load receives or requires.
See Demand.
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SE - Load-serving Entity- Entities that have been granted authority by state, local law, or regulation to serve their own load directly through wholesale energy purchases and have chosen to exercise that authority.
NEM - Net Energy Metering -A program in which solar customers receive credit for excess electricity generated by solar panels.
NRDC- Natural Resources Defense Council
OIR - Order Instituting Rulemaking - A procedural document that is issued by the CPUC to start a formal proceeding. A draft OIR is issued for comment by interested parties and made final by vote of the five Commissioners of the CPUC.
MW - Megawatt - measure of power. A megawatt equals 1,000 kilowatts or 1 million watts.
MWH - Megawatt-hour- measure of energy
NP-15 - North Path 15 - NP-15 is a CAISO pricing zone usually used to approximate wholesale electricity prices in northern California in PG&E's service territory.
PCCl - RPS Portfolio Content Category 1- Bundled renewables where the energy and REC are dynamically scheduled into a California Balancing Authority (CBA) such as the CAISO. Also known as "in-state" renewables.
PCC2 - RPS Portfolio Content Category 2 - Bundled renewables where the energy and REC are from out-of-state and not dynamically scheduled to a CBA.
PCC3 - RPS Portfolio Content Category 3 - Unbundled REC PCIA or "exit fee" - Power Charge Indifference Adjustment (PCIA) is an "exit fee" based on stranded costs of utility generation set by the California Public Utilities Commission. It is calculated annually and assessed to customers of CCAs and paid to the IOU that lost those customers as a result of the formation of a CCA.
PCL - Power Content Label - A user-friendly way of displaying information to California consumers about the energy resources used to generate the electricity they sell, as required by AB 162 (Statue of 2009) and Senate Bill 1305 (Statutes of 1997).
PD- Proposed Decision -A procedural document in a CPUC Rulemaking process that is formally commented on by Parties to the proceeding. A PD is a precursor to a final Decision voted on by the five Commissioners of the CPUC.
Pnode - Pricing Node - In the CAISO optimization model, it is a point where a physical injection or withdrawal of energy is modeled and for which a LMP is calculated.
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PPA- Power Purchase Agreement -A contract used to purchase the energy, capacity, and attributes from a renewable resource project.
RA - Resource Adequacy - Under its Resource Adequacy (RA) program, the California Public Utilities Commission (CPUC) requires load-serving entities-both independently owned utilities and electric service providers-to demonstrate in both monthly and annual filings that they have purchased capacity commitments of no less than 115% of their peak loads.
RE - Renewable Energy - Energy from a source that is not depleted when used, such as wind or solar power.
REC - Renewable Energy Certificate - A REC is the property right to the environmental benefits associated with generating renewable electricity. For instance, homeowners who generate solar electricity are credited with 1 solar REC for every MWh of electricity they produce. Utilities obligated to fulfill an RPS requirement can purchase these RECs on the open market.
RPS - Renewable Portfolio Standard - Law that requires CA utilities and other load serving entities (including CCAs) to provide an escalating percentage of CA qualified renewable power (culminating at 33% by 2020) in their annual energy portfolio.
SCE - Southern California Edison
SDG&E - San Diego Gas & Electric
SGIP - Self-Generation Incentive Program - A program which provides incentives to support existing, new, and emerging distributed energy resources (storage, wind turbines, waste heat to power technologies, etc.)
TCR EPS Protocol - The Climate Registry Electric Power Sector Protocol - Online tools and resources provided by The Climate Registry to assist organizations to measure, report, and reduce carbon emissions.
Time-of-Use (TOU) Rates - The pricing of delivered electricity based on the estimated cost of electricity during a particular time-block. Time-of-use rates are usually divided into three or four time-blocks per 24-hour period (on-peak, mid-peak, off-peak and sometimes super off peak) and by seasons of the year (summer and winter). Real time pricing differs from TOU rates in that it is based on actual (as opposed to forecasted) prices that may fluctuate many times a day and are weather sensitive, rather than varying with a fixed schedule.
TURN - The Utility Reform Network - A ratepayer advocacy group charged with ensuring that California IOUs implement just and reasonable rates.
Unbundled RECs - Renewable energy certificates that verify a purchase of a MWH unit of renewable power where the actual power and the certificate are "unbundled" and sold to different buyers.
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VPP - Virtual Power Plant - A cloud-based network that leverages an aggregation of distributed energy resources (DERs) to shift energy demand or provide services to the grid. For example, thousands of EV chargers could charge at a slower speed and hundreds of home batteries could discharge to the grid during a demand peak to significantly reduce the procurement of traditional supply resources.