Entry No. 1
PIONEER COMMUNITY ENERGY
GOVERNING BOARD
MINUTES
SEPTEMBER 19, 2024
Heard General Administrative Functions - Part I
Call to Order
Pioneer Community Energy Governing Board met in regular session at 3:00 PM on September 19, 2024.
The Members convened in person and the meeting was accessible to the public at Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, California 95677; the meeting 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.orq/about-us/meetinqs-and-agendas/.
Roll Call
Present: City of Auburn (Dowdin Calvillo), City of Colfax (Lomen), County of El Dorado (Hidahl), City of Grass Valley (Ivy), City of Lincoln (Karleskint), Town of Loomis (Ring), County of Placer (Jones), City of Placerville (Yarbrough), and City of Rocklin (Bass).
Absent: Nevada City (Petersen), County of Placer (Holmes).
Chair Dowdin Calvillo presided over the meeting.
Agenda Review
Reviewed and made no revision to the meeting agenda for September 19, 2024.
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 minutes of the July 18, 2024, regular meeting.
Adopted Resolution 2024-26 approving the policy on the Legislative Body's Reasonable Accommodation for Remote Participation at Meetings Subject to the Brown Act.
Received an update on Pacific Gas & Electric winter rates.
Approved the Consent Agenda as presented.
MOTION: Hidahl / Karleskint. Vote: 9:0:2
ROLL CALL: Bass, Dowdin Calvillo, Hidahl, Ivy, Jones, Karleskint, Lomen, Ring, Yarbrough .
No/Abstain : None.
Absent: Holmes, Petersen.
September 19, 2024 - page 2
Entry No. 3
Update on Expansion
Received report on results of the Impact Assessment Study related to the expansion of Pioneer Community Energy's service territory.
CEO Eckert introduced this item by requesting the Board of Directors to consider the study results to determine (1) Does it make financial sense to allow new members into the JPA and avoid subsidization from existing rate payers? and, (2) Does Pioneer have the power supply resources needed to meet the requirements?
Alden Walden, consultant with Pacific Energy Advisors, presented the Impact Assessment Study covering prospective new member territories of Butte County, Cities of Chico, Oroville, and Town of Paradise; Nevada County; Sutter County, Cities of Live Oak and Yuba City; Tuolumne County and City of Sonora.
Expansion to customers in all ten prospective communities would represent an approximate 111% increase in Pioneer retail sales. The financials do not support an implementation in December 2024 for a 2026 launch.
Proposed adjusting the timing to support an implementation in March 2025 for a launch in October 2027 which would avoid the highest constraint in summer months and allow for an enrollment phasing schedule.
Proposed Next Steps
• September-October 2024: Staff to share results of the Impact Assessment Study with prospective Members and find if they are agreeable to wait for the later launch date in October 2027. • October-November 2024: Staff to analyze Resource Constraints and create an Enrollment Phasing Schedule.
• December 2024: Staff to bring Enrollment Phasing Schedule to the Expansion ad hoc Committee for Board recommendation; then to the Board of Directors for Approval of New Memberships and JPA Amendment.
■ January-February 2025: New Members to adopt Ordinances ■ March 2025: Implementation Plan Amendment submitted to the CPUC • June 2025: CPUC approval and Pioneer to start purchasing power With no objection, the Board directed staff to take the next steps as presented.
Director Karleskint requested the Board to discuss governance, being like-minded, and one seat - one vote at a future meeting.
Entry No. 4
Fiscal Year 2025-2027 Strategic Plan
Adopted Resolution 2024-27 approving Pioneer Community Energy's Fiscal Year 2025-2027 Strategic Plan; and directed staff to (1) reference the Plan in staff agenda reports; (2) resume quarterly progress reports in January 2025; and (3) review the Plan as a first step in the budget process.
MOTION: Karleskint/Lomen. Vote: 9:0:2
ROLL CALL: Bass, Dowdin Calvillo, Hidahl, Ivy, Jones, Karleskint, Lomen, Ring, Yarbrough.
No/Abstain: None.
Absent: Holmes, Petersen.
September 19, 2024 - page 3
Entry No. 5
Progress Report on Programs
Received a progress report on program efforts.
Entry No. 6
Draft Fiscal Year 2023-24 Year-End Financial Reports
Received draft Fiscal Year 2023-24 year-end Financial Reports through June 30, 2024.
Discussed and confirmed that energy market volatility and unexpected weather events continue to pose significant risks to Pioneer, however if an extreme weather event occurs the budget has a contingency to mitigate the impact; rates will be reviewed in December 2024; the midyear budget in February 2025 will provide for any critical budget adjustments per market conditions; and the minimum reserves target of 160 Days of Liquidity will be reached in Fiscal Year 2024-25.
Received comments and discussed the timing to increase the liquidity minimum to take the credit rating from "A-" to "A" but not to do so at the expense of keeping rates competitive.
Entry No. 7
Heard General Administrative Function - Part II
Board Member Communications
Committee Chair Dowdin Calvillo reported that the Expansion ad hoc Committee met on September 10, 2024, to review results from the Impact Assessment Study; and recommended staff to (1) meet with the prospective new members to confirm their continued interest if not launching until 2027; and, (2) continue fact-finding efforts regarding procurement strategies. The Committee will be scheduled to meet prior to the December 19, 2024 Board Meeting in order to consider findings and make a recommendation to the Board.
Committee Vice Chair Hidahl reported that the Audit & Finance Sub-Committee met with the independent auditor on September 16, 2024, regarding the audit kick-off. The Sub-Committee, comprised of less than a quorum of the Committee, included Committee Chair Janda and Committee Vice Chair Hidahl. Due to the nature of the conversation, the meeting remained private without staff or the public in attendance. The Audit & Finance Committee will be scheduled to meet prior to the December 19, 2024 Board Meeting to discuss the (1) Financial Audit and (2) Rates.
Members discussed how other like-minded counties and cities are becoming interested in Pioneer's commitment to offer competitive rates and high customer service, which comes from the Board Members and staff working together for the customers. Director Hidahl mentioned Calaveras County as they have recently added a biomass facility and are working to make it operational; CEO Eckert added that Amador County has also expressed interest in Pioneer; Board Chair Dowdin Calvillo also mentioned that the City of West Sacramento is considering alternatives to PG&E; and Director Jones mentioned that the Placer County Public Works Department is in process of contracting with a biomass company from Colorado for a biomass facility at Cabin Creek in the Tahoe Basin.
Board Chair Dowdin Calvillo informed the Board that she will be in Washington, D.C. attending the Placer Business Alliance DC Summit on behalf of Pioneer, to participate in a panel discussion regarding water and electricity.
September 19, 2024 - page 4
Chief Executive Officer Communications
Chief Executive Officer Eckert welcomed and introduced new members of the Pioneer Team: Taylor Smith, Communications Coordinator and Eric Ponce, Information Technology Analyst.
Chief Executive Officer Eckert also expressed appreciation for Board Chair Dowdin Calvillo joining Pioneer staff in August to attend Lobby Day at the State Capitol, meeting with our constituents' representatives, Senator Alvarado-Gil, Senator Dahle, Senator Niello, Assemblymember Gallagher, and Assemblymember Patterson.
Items for Information
Received the Glossary of Terms.
Adjournment
The meeting adjourned at 4:30 PM.
ATTEST:
Minutes approved as presented by a majority vote
of the Governing Board on October 24, 2024.
Teresa Willock, Board Secretary