Redwood Coast Energy Authority Board of Directors
July 24, 2025

STAFF REPORT
Agenda Item # 8.2
AGENDA DATE: July 24, 2025
TO: Board of Directors
PREPARED BY: Jaclyn Harr, TEA Account Director – California Richard Engel, Director of Power Resources
SUBJECT: 2025 California Summer Market Conditions Assessment

BACKGROUND
Early each summer, the California Independent System Operator (CAISO) publishes a Summer Loads and Resources Assessment to inform stakeholders on how well prepared the state’s grid is for this time of year that typically presents the greatest challenge to electric reliability. The Energy Authority (TEA) prepares an annual California Summer Market Conditions Assessment that summarizes key findings from the CAISO assessment as well as a brief summary of RCEA’s work in ensuring local and statewide grid reliability.

SUMMARY
TEA California Account Director Jaclyn Harr and RCEA staff will present RCEA’s “2025 California Summer Market Conditions Assessment.”
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
Not applicable.

EQUITY IMPACTS
Not applicable.

RECOMMENDED ACTION
Accept 2025 California Summer Market Conditions Assessment.

ATTACHMENT
Redwood Coast Energy Authority: 2025 California Summer Market Conditions Assessment. 117
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Redwood Coast Energy Authority
2025 California Summer Market Conditions Assessment
Prepared by The Energy Authority (TEA), June 2025
CAISO Grid Conditions Summary
The California Independent System Operator’s (CAISO) 2025 Summer Loads and Resources assessment indicates improved grid reliability due to accelerated resource development and capacity margins that exceed demand and reserve requirements.

California is expected to have sufficient capacity for this summer. This is mostly attributed to 5,534 MW of capacity of added solar, battery, and hybrid expected to be operational by June 30, 2025, as measured against a September 1, 2024 resource baseline. The forecasted peak load is 46,094 MW, which is minimally less than last year with the peak expected to occur in September at hour ending 18.

June through August expect above normal temperatures across the West especially in the Intermountain West. There is also an increased chance of above-normal temperatures through August and September. Previously moved into the state’s strategic reliability reserves pool, some gas-fired once-through cooling generators have had their retirements deferred to Dec 31, 2026, and will remain part of the strategic reliability reserve. Both probabilistic assessment and multi-hour stack assessment indicate there are sufficient resources to achieve a reasonable margin above the Planning Reserve Margin required to achieve a Loss of Load Expectation of 0.1.

The CAISO’s fleet of emergency resource programs, such as the State Power Augmentation Project and the Electricity Supply Strategic Reliability Reserve Program (ESSRRP) remain stable from last year. The ESSRRP combined with available emergency assistance on the interties remains constant, totaling approximately 3,450 megawatts (MW). These programs generally trigger based on various CAISO emergency notifications and add emergency capacity and reserve resources to support the grid specifically during extreme events, as outlined in CAISO’s Emergency Procedure 44201 . Additionally,
demand-side programs administered by the California Energy Commission (CEC) and California Public Utilities Commission (CPUC) like the Demand Side Grid Support Program and the Distributed Electricity Backup Assets program focus on load reduction as a means of ensuring grid reliability. These initiatives collectively contribute to improving grid conditions and enhancing overall system preparedness for the summer of 2025.

While TEA’s analysts generally support the CAISO’s observations included in its Summer 2025 Assessment, four key areas of uncertainty call for tempered confidence in the CAISO’s ability to maintain reliable operations during the summer 2025 season:
• Potential for coincident heat event or wildfires to stress inter-regional deliveries; 119
• Potential over-confidence in expected level of intertie imports, at up to 5,500 MW in hours ending 17-23, given west-wide capacity and energy market conditions, as well as ongoing challenges with CPUC Import Resource Adequacy (RA) policy; • Potential for the storage fleet to deliver sub-optimal dispatch over evening peak hours due to individual resource state-of-charge management; and
• Potential for uncertainty in Western Energy Imbalance Market (WEIM) transfers during tight regional or west-wide system conditions to challenge real-time market stability.

CAISO Grid Conditions – Deeper Dive
New Generation
The CAISO expects a total of 5,535 MW of installed capacity to be added to the grid by June 30, 2025 including about 3,600MW of battery and 1,100MW of solar since September 1, 2024. Of that, 2,163 MW are planned additions expected to reach commercial operation (COD) between April 1 and June 30 in 2025.
(Table 1.2, p. 5 - “Actual and expected additions from September 1, 2024 through June 30, 2025 (MW)”)
Particularly notable in 2025 is the addition of significant battery capacity. Battery storage resources can provide ancillary services and load following capabilities in both charging and discharging modes. As such, the CAISO’s model co-optimizes battery charging and discharging across time intervals to minimize system costs or meet specified objectives (such as minimizing depth verses duration of shortfalls), while adhering to operational constraints.
120
(Table 1.1, p. 2, Technical Appendix - “Existing resources by fuel type and deliverability status (excludes tie-generators)” (MW))
Hydro Generation
Weather conditions such as temperature, cloud cover, and precipitation directly affect system operations by influencing hydropower output, renewable generation, and load. National Weather Service (NWS) forecasts for summer 2025 indicate above normal temperatures across the Western US.

The Intermountain West and Pacific Northwest are most likely to be above average with a risk of heat dome conditions. This has a direct effect on the hydro generation in CA and the Pacific Northwest and the availability of surplus power to export into the CAISO. These weather patterns are expected to lead to below normal runoff volumes, and as a result less hydro generation, in eastern Washington, northern Idaho, and portions of the Upper Columbia River Basin. NWS’s 2025 National Hydrologic Assessment states that a series of atmospheric rivers in December through March led to above normal snow conditions and runoff volumes in southern Oregon and Northern California. However, central California and Nevada should expect near to below normal runoff volumes. Overall, an average water year can be expected in California with the potential for somewhat limited imports from the Pacific Northwest. For analysis purposes, the CAISO is using an average hydro profile based on the 2018 hydro year in its probabilistic study.

Figure 5: Snow Water Equivalent Percent of Median (NRCS) (NWS) Stack Analysis of Available CAISO Resources
The CAISO's 2025 summer multi-hour stack analysis evaluates the availability of all RA-eligible resources during peak hours across each summer month. It shows that the system maintains a healthy reserve 121
margin above the 22.67% planning threshold needed to meet reliability standards, even during the most stressed periods. The analysis uses realistic assumptions for each resource type, including historic wind and solar profiles, storage discharge limits, and demand response availability. September emerges as the most critical month due to high demand and reduced solar output, though the system still has adequate surplus that month. Overall, the analysis confirms that resource availability is sufficient to meet hourly peak loads and reserve requirements throughout the summer, assuming normal operating conditions.
(Figure 1.7, p. 11 – “Multi-hour stack analysis for September peak day”) Redwood Coast Energy Authority Summer 2025 Readiness
RCEA’s Energy Risk Management Policy (Risk Policy) requires annual review of summer energy hedges, RA compliance, and procured resource status. The following is a brief summary of RCEA’s work in ensuring local and statewide grid reliability.

Energy Hedging
RCEA utilizes a programmatic approach to hedging that incrementally fills energy deficits through bilateral procurement from market counterparties. The program is designed to ensure RCEA is appropriately hedged to levels set in RCEA’s Risk Policy for quarterly and monthly periods prior to the onset of summer. This approach means that RCEA’s exposure to volatile energy prices that may occur during summer heat events is significantly mitigated. Load variation is accounted for when determining the appropriate hedge volumes. As of late May 2025, RCEA met all its targeted procurement of energy hedges for Q3 2025, with more than the minimum 80% and less than the maximum 130% of its expected load contracted in each month. RCEA’s average around-the-clock hedge percentage in Q3 2025 is 113%.

The chart below shows RCEA’s heavy load hour (HLH) Q3 energy position. HLH is defined as Monday through Saturday, hour ending 0700 through hour ending 2200, excluding NERC holidays. 122
Resource Adequacy
RCEA actively monitors its RA position and pursues forward procurement of RA-only products or full offtake generation resources through Power Purchase Agreements (PPAs) to meet its assigned RA obligations. Like many load serving entities, RCEA has been impacted by delays in resource online dates that have made RA position management challenging. Further complicating this matter has been the extreme illiquidity in RA markets, which are opaque and require a combination of both formal and informal solicitation approaches to secure this product. Nonetheless, RCEA has met its RA requirements for Summer 2025 and the rest of the calendar year.

New Resources
RCEA continues to pursue development of new, clean resources and has contracted and brought online over 100 MW of new capacity. While different types of new resources provide varying degrees of load carrying capacity on the grid, RCEA’s renewable energy procurement goals will provide it with a substantial amount of clean peaking energy in the years to come. Sandrini Solar reached commercial operation at the end of 2024 and entered RCEA’s RA portfolio in February. Later this year the developer will bring a fully deliverable, co-located battery online to help optimize the solar generation and reduce exposure to negative pricing. Foster Clean Power A and B are expected to reach COD this summer, and North Coast Highway Solar later this winter, bringing a combined 9 MW of solar into the portfolio along with 2.5 MW of storage. Additionally, RCEA is preparing to enter contract negotiations for new distributed solar and storage resources that were shortlisted through a recent solicitation. RCEA plans to expand its renewable energy and storage portfolio in the coming years to provide additional dispatchable peaking energy when needed. This will not only support the power grid but will also reduce RCEA’s costs.

Existing Resources
The majority of RCEA’s existing fleet of resources are expected to provide summer capacity. Largest among them is Humboldt Sawmill Company’s (HSC) Scotia Cogeneration biomass plant, which has provided reliable capacity during peak hours and has a steady generation shape that allows it to have a RCEA Monthly Energy Position – Heavy Load Hours (MW)
123
relatively high load carrying capacity when compared to other types of renewables. RCEA’s Redwood Coast Airport Microgrid (RCAM) not only supplies solar energy during the summer but also serves as a source of emergency power to the airport, U.S. Coast Guard station and an animal shelter during grid outages. Cove Hydro, has gone offline for the summer, as reduced waterflow over the summer months eliminates the ability of the facility to generate meaningful amounts of electricity, which is typical for run-of-river hydro facilities. RCEA also contracts for resource adequacy from demand response resources that help ensure grid reliability during critical periods.

Public Safety Power Shutoffs (PSPS)
RCEA staff has developed protocols regarding communication with its scheduling coordinator, The Energy Authority (TEA), and with PG&E in anticipation of PSPS events that may impact Humboldt County. In the case of a PSPS event and other transmission outages, PG&E may island the Humboldt Local Capacity Area using its Humboldt Bay Generating Station (HBGS), reducing the risk of significant blackout events for most customers compared to previous years. An unfortunate consequence of this islanding is that PG&E deems it operationally necessary to disconnect other generators such as HSC and RCAM for local grid stability. These disconnections have lasted days or even weeks during past islanding events, having significant negative financial impact on both RCEA and HSC. However, the HBGS plant has sufficient capacity to meet local peak loads during islanded operation.

Volatile Incoming Pricing Event Response (VIPER)
RCEA and TEA have collaborated to codify staff protocols should an event occur that is expected to impact grid operations and/or RCEA’s costs. Events of this nature include unexpected outages by large generators or transmission lines, widespread wildfires or PSPS events, or high temperatures within California or west-wide, as occurred in the first half of July 2024. VIPER protocols include review of potential portfolio and/or financial risks during an event, mitigation measures where appropriate, and increased collaboration and communication between RCEA and TEA staff before, during, and after an event.
124
2025 RCEA SUMMER RISK ASSESSMENT
7/28/2025 2
Ca liforn ia 2025 Su m m e r Ove rview
o CAISO and CEC report an overall positive outlook for m eeting peak sum m er dem and o Peak load forecasted at 46,094 MW in Septem ber at HE18 (m inim ally less than last year) o Forecast is based on 1-in-2 weather year (also known as weather-norm alized) o 5,534 MW of added nam eplate capacity of solar, battery, and hybrid expected by June 30, 2025 o Surplus of 1,451 MW above peak forecasted sum m er needs o Warm er than norm al tem peratures are expected especially in Inland CA and PNW o California had an average water year, with reservoirs at healthy levels o Upper PNW has below norm al runoff volum es and therefore less hydro generation available o As always, there rem ain concerns regarding a west-wide heat events, wildfires, transm ission interruption, and unexpected unit outages 7/28/2025 3
Te m pe ra tu re Ou tlook
7/28/2025 4
Pre cipita tion Ou tlook
7/28/2025 5
We ste rn US Hydro Ou tlook
7/28/2025 6
Ca liforn ia Se a son a l Wa te r Stora ge
Mid-July Data
Current Level
Historical Median
7/28/2025 7
CAISO 2025 Se pte m be r Pe a k Loa d & Re sou rce s An a lysis 7/28/2025 8
RCEA Su m m e r Re a din e ss Ove rview
o RCEA has fully hedged its energy supply for Sum m er 2025 o RCEA’s Energy Risk Managem ent Policy hedging requirem ents for the sum m er are 80% to 130% in Q3.
o RCEA has fully procured all necessary RA to m eet com pliance for Q3 o RCEA has m ultiple years of sum m er operating history to inform decisions, including both challenging and relatively m ild sum m ers o RCEA and TEA have an established procedure for Volatile Incom ing Pricing Event Response (VIPER) to ensure alignm ent on CAISO m arket operations and reporting in the case of a sum m er pricing event caused by heat or other conditions
7/28/2025 9
RCEA Su m m e r En e rgy Position
o HSC Biom a ss
o Typ e : 18 MW (Biom ass Plant)
o St a t u s: Operating as expected
o Re d w ood Coa st Airp ort Microgrid
(RCAM)
o Typ e : 2.2 Solar + 7.2 MWh/2.3 MW Battery
o St a t u s: Operating as expected
o Cove Hyd ro
o Typ e : 5.6 MW Run-of-River Hydro
o St a t u s: Offline for sum m er (as expected)
o Sa n d rin i Sola r
o Typ e : 100 MW Solar
o St a t u s: Operating as expected; battery
com ponent under construction
o Fost e r Cle a n Pow e r A
o Typ e : 3 MW Solar + 5 MWh/1.25 MW
Battery
o St a t u s: Testing
o Fost e r Cle a n Pow e r B
o Typ e : 4 MW Solar + 5 MWh/1.25 MW
Battery
o St a t u s: Testing
7/28/2025 10
RCEA Con tra cte d Ge n e ra tion
7/28/2025 11
Ove ra rch in g Ca liforn ia En e rgy In du stry Procu re m e n t Con ce rn s o CPUC’s new Slice -of-Da y Re sou rce Ad e q u a cy is in it s first ye a r of ope ra t ion under the program redesign; m arket is overall functional but far from efficient o California Energy Com m ission’s (CEC’s) Pow e r Con t e n t La b e l will be sh ift in g t o h ou rly GHG (a n d p ossib ly REC) re p ort in g in the next two to three years; policy im plem entation discussions underway
o CPUC’s “Re lia b le a n d Cle a n Pow e r Procu re m e n t Progra m ” (RCPPP), a new fram ework that com bines long-term procurem ent m andates for reliability and clean energy into a single regulatory structure, is under discussion with possible im plem entation in 2026 o We st e rn orga n ize d m a rke t e xp a n sion underway with several entities in the broader west opting for either CAISO’s Extended Day Ahead Market or SPP Markets+ o New project developm en t h e a d win d s a t a ll t im e h igh due to federal policy (tariffs and potential elim ination of the IRA), supply chain (shortages of com ponent parts), significant interconnection delays, and perm itting challenges for resources and transm ission

STAFF REPORT
Agenda Item # 10.1
AGENDA DATE: July 24, 2025
TO: Board of Directors
PREPARED BY: Elizabeth Burks, Executive Director
SUBJECT: Humboldt Transit Authority Hydrogen Bus and Fuel Project Presentation

BACKGROUND
The Humboldt Transit Authority (HTA) is transitioning to a zero-emission fleet. Thanks in part to a $38.7 million California State Transportation Agency Transit and Intercity Rail Capital Program grant, HTA is adding 11 new hydrogen fuel cell electric buses to its fleet and installing a hydrogen fueling station at HTA’s Eureka facility that is kick starting a North Coast hydrogen fueling network and supply chain for the public’s cars and delivery vans. The new hydrogen buses will serve the Redwood Transit System as well as a new inter-city route to Ukiah, connecting riders to Mendocino County.

According to Humboldt County’s latest draft of the Regional Climate Action Plan, transportation produces 73% of Humboldt County’s greenhouse gas emissions. Roughly half of those emissions come from on-road passenger vehicles. A key part of RCEA’s strategic plan is to work with other local public entities to reduce vehicle miles traveled in Humboldt County by at least 25% by 2030, and to reduce greenhouse gas emissions from transportation by over 65% by 2030.

In March 2025, Director Arroyo requested a presentation for this Board by Humboldt Transit Authority on its hydrogen fuel project and recent hydrogen bus deployment.

SUMMARY
HTA’s Transit Planner Jerome Qiriazi will present information about the agency’s hydrogen fueling station and recent hydrogen bus deployment.

STAFF RECOMMENDATION
This is an information only presentation. No action is requested.

ATTACHMENTS
None
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126
Humboldt Transit Authority
HTA’s Hydrogen Fleet Transition
Progress to Date
Jerome Qiriazi
Transit Planner
707-443-0826 x112
[email protected]
July 24, 2025 RCEA Board Meeting 1
WHY CHOOSE HYDROGEN OVER BATTERY ELECTRIC?
July 24, 2025 RCEA Board Meeting 2
BEBs not an option because of one or
more of the following:
• High daily miles
• High % highway miles
• Vehicle type used
Vehicle
Blocks
Daily
Miles
100/101 366.46
112/115 358.57
104/105 341.4
106/107 338.44
401 318.45
501 305.15
102/116 296.98
108 222.6
118 210.7
702 201.33
701 180.09
120 165.14
503 158.17
504 158.14
302/352 152.11
304/354 138.29
203/253 131.02
201/251 130.27
205/255 127.24
110 126.66
351 120.32
204/254 116.25
301 98.77
123 96.03
901 74
902 74
903 74
904 74
905 74
BEBs challenging because of one or more
of the following:
• High daily operational hours
• Vehicle type used
BEBs can be used
• Currently run BEBs on a few of these
Can
confidently
use BEBs on
only 34% of
current
vehicle blocks

TRANSIT FLEET TRANSITION PLAN
July 24, 2025 RCEA Board Meeting 3
0 10
20 30
40 50
60 70 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Number of Vehicles iin Fleet Year
Hydrogen
Electric
Diesel
Gasoline
100% New Purchases
are Zero Emission
Starting 2029
25% New Purchases
are Zero Emission
Starting 2026
NEW FLYER EXTENDED RANGE XHE40
July 24, 2025 RCEA Board Meeting 4
46% Greater Fuel Capacity

PERFORMANCE TESTING RESULTS
July 24, 2025 RCEA Board Meeting 5
Test Weight / HVAC Miles
Avg Speed
(mph)
Min
Battery
SOC
Efficiency
@ BUL
(mi/kg)
Total Range
@ BUL
(miles)

1.1 Unweighted, HVAC Off 120 24 60% 12.1 641

1.2 Weighted (39 people), HVAC On – Heat 117 26 58% 9.7 514

2.1 Unweighted, HVAC Off 77 32 50% 10.4 551

2.2 Weighted (40 people), HVAC On – Heat 76 30 46% 9.2 488 3 Weighted (43 people), HVAC On – Heat 318 40 50% 8.2 435 Test 2 Elevation Profile Test 3 Elevation Profile
NEW FLYER EXTENDED RANGE XHE40
July 24, 2025 RCEA Board Meeting 6
BEBs not an option because of one or
more of the following:
• High daily miles
• High % highway miles
• Vehicle type used
XHE40
Xtnd Rng
H2Bus Type
Available?
Sufficient
H2Range?
Vehicle
Blocks
Daily
Miles
Y Y 100/101 366.46
Y Y 112/115 358.57
Y Y 104/105 341.4
Y Y 106/107 338.44
Y Not Really 401 318.45
501 305.15
Y Y 102/116 296.98
Y Y Y 108 222.6
Y Y Y 118 210.7
702 201.33
701 180.09
Y Y Y 120 165.14
503 158.17
504 158.14
Y Y 302/352 152.11
Y Y 304/354 138.29
Y Y 203/253 131.02
Y Y 201/251 130.27
Y Y 205/255 127.24
Y Y Y 110 126.66
Y Y 351 120.32
Y Y 204/254 116.25
Y Y 301 98.77
Y Y Y 123 96.03
901 74
902 74
903 74
904 74
905 74
BEBs challenging because of one or more
of the following:
• High daily operational hours
• Vehicle type used
BEBs can be used
• Currently run BEBs on a few of these
• Can
confidently use
BEBs on only
34% of current
vehicle blocks
• New extended
range XHE40
addresses 38%
of our vehicle
blocks
66% of blocks
now have a ZE
vehicle option
Extended range
bus can be
interlined across
more blocks even
though not all
necessarily need
a higher range

REMAINING VEHICLE CLASS NEEDS
July 24, 2025 RCEA Board Meeting 7
• Not all vehicle types are available with hydrogen
• Available hydrogen vehicles still don’t have the
required performance for all duty cycles
• Prototype over-the-road coach (state funding stalled) • Looking to fund prototype 26,000 GVWR cutaway
• Waiting for 11,000 – 14,000 GVWR cutaway performance results 19-passenger
300+ miles per day
Mostly highway miles
Winter chains
29-passenger
300+ miles per day
Mostly highway miles
Winter chains
HTA’S TEMPORARY FUELING INFRASTRUCTURE
July 24, 2025 RCEA Board Meeting 8
Temporary Fueling with Linde: Simple cascade fill, low power, few moving parts.

HTA’S PLANNED LIQUID FUELING INFRASTRUCTURE
July 24, 2025 RCEA Board Meeting 9
Equipment
Public Station: H70 Dispenser
1 st Street
V Street
Target
New DMV
HTA Yard
H35 Dispensers
Concept of what Public Fueling Station Will Look Like
AC Transit Public Station in Emeryville
HTA’S PLANNED LIQUID FUELING INFRASTRUCTURE
July 24, 2025 RCEA Board Meeting 10
• D/B, O&M and Fuel: Linde
Engineering North America
• Most equipment within
a ~50’x50’ area
• 18,000 gal tank
• ~4,000 kg usable
• 2 H35 dispensers
• Capable of ~150 kg/hour
• 42kg in 12 minutes
• HTA 2035 planned ~14,000kg
per month consumption
• One truck delivery per week AC Transit in-yard fueling station built in 2012 HTA’S PLANNED LIQUID FUELING INFRASTRUCTURE
July 24, 2025 RCEA Board Meeting 11
• 1 public H70 dispenser
(J2601/5 Category D)
• Up to 30kg fills at H70
• Open 24/7 with credit card
payment
• Can fuel light duty and future
medium duty vehicles
AC Transit Public Station in Emeryville
Built in 2012

NEAR TERM FUEL SOURCE
July 24, 2025 RCEA Board Meeting 12
Existing Industrial
H2 Producers
HTA
Linde

CATALYZING A REGIONAL HYDROGEN MARKET
July 24, 2025 RCEA Board Meeting 13
• Training a Zero Emission
Workforce
• HTA needs to train
current and future staff
• We need to train similar
occupations (i.e. auto
repair) to enable and
foster a hydrogen
market
• We need to train
supporting sectors (i.e.
industrial processes,
towing)
Planned North Coast Zero Emission Training Center
- First Phase is already funded

CATALYZING A REGIONAL HYDROGEN MARKET
July 24, 2025 RCEA Board Meeting 14
• Resiliency and redundancy is important
• We need 100% operational uptime (OK, >99%)
• Only way to do this is with redundant systems
• Our success will rely on regional adoption by other
fleets and industries
• Shared fueling network
• Offer public fueling
• Include MD H70 (J2601 Cat. D)
• Opportunities with local
industry development
Credit: AirProducts

CATALYZING A REGIONAL HYDROGEN MARKET
• HCAOG North State Hydrogen Network Siting Project
• Just awarded a contract to conduct a siting analysis
to determine how best to leverage transit
hydrogen projects to kickstart regional demand
• Identify opportunistic locations that can also
support trucking and freight on key corridors
• Develop a replicable
fueling station micrositing
methodology to support
investment decisions
July 24, 2025 RCEA Board Meeting 15
Project Area is
North State
Super Region
(NSSR)
WAIT, WHY ARE WE DOING THIS?
July 24, 2025 RCEA Board Meeting 16
Source:
https://fediscience.org/@ZLabe/1122
55457353089059
Data Source:
https://psl.noaa.gov/data/gridded/dat
a.noaa.ersst.v5.html

STAFF REPORT
Agenda Item 10.2
AGENDA DATE: July 24, 2025
TO: Board of Directors
PREPARED BY: Lori Biondini, Business Planning & Finance Director SUBJECT: Cost of Service and Rate Design Services Contract Award Background
In 2024, RCEA staff became concerned with issues around setting retail electricity rates stemming from new case law that established Community Choice Aggregators (CCAs) as subject to Proposition 26 which provides that “any levy, charge, or exaction of any kind imposed by a local government” is a tax and subject to voter approval. Although the revenue that RCEA collects through the CCA program is excepted from Prop. 26 because it is payment for a “benefit, privledge, service, or product,” the rates charged must capture no more than the costs of the provided service. An adequate rate study that establishes a factual basis of cost-of-service would support this exception, prompting staff to prepare a solicitation for such a study. A rate-setting approach that diverges from the current practice of closely following Pacific Gas & Electric Company rates may also better serve RCEA’s customers.

Summary
On April 11, 2025, RCEA issued a request for proposals (RFP) to assist, advise, and train RCEA staff in rate design and setting processes. Six firms submitted proposals in response to the solicitation:

Aspen Environmental Group, Atrium Economics, GDS Associates, MCR Corporate Services, MWR & Associates, and NewGen Strategies and Solutions.

A committee of staff members evaluated and scored the proposals using the following criteria: 1) knowledge of electric utility rate-setting practices, the California energy market, the CCA business model, and California laws and regulations affecting utility rate-setting, 2) experience providing similar services to other clients, particularly CCAs operating in California, 3) key staff’s qualifications and availability, 4) plan for providing training and support to RCEA staff, 5) degree of acceptance of RCEA’s Standard Agreement and 6) costs and fees. The highest-scoring proposal was from NewGen Strategies and Solutions, LLC (NewGen), a consulting firm based in Colorado that specializes in serving the utility industry. Per the RFP, significant weight was given to knowledge, experience, and cost. NewGen’s team has substantial experience navigating the energy market in California, primarily with CCAs and public power clients, and they offered the lowest total cost.

Staff is recommending RCEA enter into a Professional Services Agreement with NewGen for a not-to-exceed (NTE) amount of $116,900.

FINANCIAL IMPACTS
The estimated cost for these services was included in the adopted fiscal year 2025-2026 budget under Professional and Program Services - Accounting in the Power Resources category ($100,000).

The proposed NTE amount exceeds the budget by $16,900; staff anticipates that any overage 127

incurred this fiscal year would be allocated from the Accounting budget under the General and Administrative category.

EQUITY IMPACTS
Not applicable.

RECOMMENDED ACTIONS
Award professional services agreement with NewGen Strategies and Solutions, LLC for a not-to-exceed value of $116,900 for cost of service and rate design services through July 2026 and authorize the Executive Director to execute the agreement and all associated documents.

ATTACHMENTS
A. NewGen Strategies and Solutions Response to RFP-25-604 128
129
Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net
225 Union Blvd,
Suite 450
Lakewood, CO 80228
Phone: (720) 633-9514
Fax: (720) 633-9535
June 6, 2025
via email: [email protected]
Elizabeth Burks
Executive Director
Redwood Coast Energy Authority
633 3rd St,
Eureka, CA 95501
Subject: Executive Summary
Dear Ms. Burks:

Humboldt County, home of California’s Redwood Coast, offers a diverse setting rich in history, natural beauty, and opportunities for growth. The Redwood Coast Energy Authority (RCEA), a recently established community choice aggregator (CCA), was created to lead, coordinate, and integrate regional efforts to develop a cleaner, greener energy future for the community. RCEA’s role is to facilitate public policy goals by purchasing and delivering cleaner, renewable power for its customers, directly empowering local control over their energy choices. However, RCEA’s work extends beyond providing electricity and is focused on developing a long-term sustainable energy strategy, ensuring access to energy conservation, energy efficiency, and renewable energy programs. RCEA’s goal is to enhance the affordability and reliability of energy in Humboldt County while supporting local businesses and residents with innovative solutions. To assist with this goal, we are proposing to provide RCEA with a robust, detailed, and comprehensive Cost of Service (COS) and Rate Design Study (Study).

Our proposed Project Team is comprised of industry professionals who have served the public power industry throughout their careers. As described in our Statement of Qualifications, the Project Team will be led by me and supported by Carlo Bencomo-Jasso, Alanna Daley, Brody Liebler, and Brian Dickman.

We have developed cost of service and rate design studies for many of California’s CCAs, as well as publicly owned utilities across California and the country.

NewGen Strategies and Solutions, LLC (NewGen) is a management and economic consulting firm specializing in serving the utility industry and market. Established in August 2012, NewGen primarily serves public sector utilities and provides nationally recognized expertise in load forecasting, utility cost of service and rate design studies, financial feasibility studies, municipalization efforts, depreciation and appraisal studies, litigation support for state and federal regulatory proceedings, utility financial planning, and stakeholder engagement for electric, water, wastewater, solid waste, and natural gas utilities.

NewGen employs over 60 professional and administrative staff. Our current staff has the capability to work on simultaneous assignments, and we have the capacity to add staff and/or expand support from a network of teaming partners, if needed. NewGen has 14 offices located nationwide.

Understanding of Requested Services and Approach/Services to be Provided RCEA is committed to meeting the needs of its current and future CCA customers in its mission to support local businesses and residents using innovative energy solutions. This Study is designed to leverage our expertise working with the California energy markets and CCA business models to assist, advise, and train 130
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RCEA management and staff during its rate setting process. We will deliver detailed and comprehensive cost of service and rate design models and provide appropriate training on how to maintain these models for future RCEA analysis. NewGen is very familiar with TEA and California Community Choice Association (CalCCA), including their support for RCEA (and other CCAs) on policy matters impacting retail electric rates, such as the development of Power Charge Indifference Adjustment (PCIA) charge.

Task 1: Project Startup, Data Request, and Kickoff Meeting Immediately upon authorization to proceed, we will begin gathering detailed information related to RCEA’s operations and financials in support of the Study. NewGen will develop an initial data request to gather all supporting power supply contract costs, operating expenses, budgets and projections, customer class load data, and related data to support the development of the revenue requirement, COS, and eventual rate recommendations. NewGen will also collaborate with RCEA and their data provider to gather Pacific Gas & Electric (PG&E) advanced metering infrastructure (AMI) data to support COS allocations, strategic rate decisions, and related rate making.

NewGen will review initial data responses from RCEA and identify any gaps or additional data needs prior to the kickoff meeting. This kickoff meeting will also serve as an initial workshop to review current and desired RCEA rate-setting practices, discuss potential margins, and to facilitate a discussion on the overall rate strategy and objectives, project scope, and schedule. One of the key elements or goals of the kickoff meeting will be a thorough discussion on the overall rate and financial strategy. Initially, NewGen has assumed a three-year (Fiscal Year [FY] 2026–2028) financial forecast model with the intent of recommending rates for July 1, 2026; however, we will work with RCEA to develop a forecast period.

The financial forecast will be critical in projecting financial performance, annual cash requirements, reserve needs for rate stabilization, necessary rate changes, and related financial key performance indicators (KPIs) (e.g., minimum cash on hand, effective rates, etc.). This discussion will also include the definition or evaluation of different scenarios and sensitivities that RCEA wants to evaluate over the forecast period to better mitigate risks and understand impacts to rates and KPI performance.

Task 2: Development of RCEA’s Test Year Revenue Requirement The objective of the development of the revenue requirement is to identify the current and projected revenues and expenses for RCEA’s customer base. This will include the appropriate basis (cash vs. accrual) upon which the annual revenue requirement for RCEA will be developed.

NewGen will develop a multi-year Test Year Revenue Requirement; however, we will create a COS model that will allow for individual Test Years if significant variability in the load, annual expenses, or other key inputs are present or expected. The COS model will maintain the RCEA budgeting system, chart of accounts, and any existing RCEA specific accounting practices that should be tracked through the COS and allocation to customer classes or products offered. NewGen will work with RCEA to project or analyze specific system changes and refine specific cost projections as needed—such as current and projected power supply costs based on RCEA’s power contracts, agreements, and knowledge of wholesale rate levels during the Test Year period. The model will also review and develop appropriate reserve fund levels based on utility industry standards and our experience with CCAs and publicly owned utilities. The model will include the cost of operation and maintenance expenses—such as customer service and data management, taxes, debt service expenses, and policy-determined margins—along with all other necessary costs associated with RCEA’s operations. It will also incorporate current and projected customer program costs, PCIA, and/or other applicable non-bypassable generation charge projections, as well as specific Resource Adequacy (RA) costs applied to RCEA operations. 131
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Test Year Revenue Requirement
Using the financial model and any desired scenario analysis, NewGen will collaborate with RCEA staff to optimize cash reserves, rate stabilization strategies, rates, KPIs, and related goals to develop the Test Year Revenue Requirement based on a multi-year revenue requirement projection. This Test Year Revenue Requirement to be included in the COS analysis will encompass all costs RCEA must collect through rates for the desired period. It will also include any known and measurable adjustments necessary to account for material or significant changes to the RCEA power supply or delivery systems—such as a large, new customer addition or market fluctuations. This model will allow RCEA to see the impacts and results at a system and individual class level for any combination of Test Years.

Task 3: Cost of Service
The objective of the Cost of Service analysis is to determine an equitable allocation of the annual revenue requirements developed in Task 2 to RCEA‘s customer classes using generally accepted cost allocation methods. Projected costs will be functionalized by infrastructure investment (either individually or in appropriate groups) and related expenses into each function or business unit as defined by RCEA, including production, distribution, customer services, and general administration. As part of the COS analysis, NewGen will work with RCEA to review the appropriate number of rate classes it serves based on the services provided to ensure the proper rate classes are being considered. The review will focus on simplifying the current rate classes where feasible; a comparison of rate classes to those served by PG&E will be conducted. NewGen will work with RCEA to develop an appropriate analysis that preserves PG&E’s allocation of rates across different rate classes.

NewGen has experience revising and integrating large AMI data sets from California utilities and multiple CCAs to evaluate customer segmentation, load profiles, contributions to monthly system peak demands, and class load factors. Specific RCEA load profiles by class will be used to develop appropriate Time of Use (TOU) periods and the data used for assigning costs, in coordination with RCEA staff. Allocation factors will be applied to RCEA’s rate classes based on customer usage data, including both historical and projected load by rate class. Where data is not available, industry standard data will be applied in coordination with RCEA.

Average unit costs by functional category will be provided based on the allocated costs and billing determinants developed for each rate class. Unit costs will be presented for energy ($/kWh) and demand ($/kW). RCEA has indicated that it prefers that RA costs be allocated to large and medium customers based on their coincident peak (CP) demand characteristics and allocated to residential and small commercial classes based on a fixed minimum charge. NewGen will develop appropriate allocation factors for RA costs in coordination with RCEA for use in the COS model. As part of the COS analysis, revenues from current rates will be compared to the system-wide and individual customer class revenue requirements to determine if potential rate subsidies exist.

COS Results
This insight and our COS model structure will quickly and easily provide the detailed components to create eventual unbundled rates to support a delineation and the ability to communicate services and costs incurred by RCEA and those provided by PG&E. The COS and related Work Papers will also provide all the data required to evaluate and compare the fixed and variable costs (e.g., customer-, demand-, and energy-related costs) with the fixed and variable revenues by customer class. Our COS model integrates our experience as expert witnesses and provides a robust defense and compliance with California-related requirements. NewGen will develop a draft whitepaper with recommendations for potential changes to RCEA rate classes, which will include a comparison of PG&E’s different rate classes. 132
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NewGen will hold periodic virtual review meetings with the Project Team and RCEA staff to review the draft results at key milestones in the development of the COS model. This will include the revenue requirements, functionalization, and individual customer classes’ COS with comparisons to current rate revenues, including identification of subsidies, as appropriate. The COS results and RCEA policy input regarding rate strategies and incentives will guide rate design for Net Energy Metering (NEM), Electric Vehicle (EV), TOU, demand response, and other RCEA desired rates and policy objectives. Different rate options, based upon the policy objectives identified by RCEA, will be analyzed for adjustments to the COS results which may include both bundled and unbundled pricing to show the impacts of potential retail access.

Task 4: Rate Strategy and Design
Based on COS results, current rates, policy direction, and competitive position (including benchmarking with current and projected PCIA rates), NewGen will hold a virtual meeting with RCEA staff to discuss rate strategy for this assignment. The objective of the rate strategy is to develop rate options using a variety of approaches, ranging from the current rate design to strict COS-based rates.

This will entail understanding the COS and cost-based results for each customer class, current and future PCIA rates, PG&E generation rate benchmarking, and current RCEA competitive position and customer churn. This process will include the establishing of reasonable goals for the proposed rate design which includes the development of appropriate pricing signals for each class to reflect costs associated with current and future power supply and to meet the specific policy goals of RCEA. An analysis of revenues for each of the rate options will be compared to the system-wide and individual customer class revenue requirements. The results of the discussion will lead to the development of an informed rate setting approach considering expected margin contributions, cash reserve contributions, product offerings, and other RCEA considerations for final rate recommendations.

The final analytical step in the Study is developing the rate design model which will include design rates by class, customer average bill impacts, and benchmarking to PG&E rates. Rate design will include designing base rates and related adjustments, discounts, or riders (e.g., California Alternate Rates for Energy [CARE], Energy Cost Adjustment Charges) for each of the customer class rates.

The RCEA rates will be designed with consideration of PG&E delivery and non-bypassable charges.

NewGen will design rates for a period of one to three fiscal years to fully recover RCEA costs over that same period and ensure financial performance by tracking KPIs—such as annual over/under recovery, reserve levels, or fixed cost recovery. After completing the recommended rates, the revenue adequacy of the new rates will be proven by forecasting and calculating the annual rate revenue generated for each customer class by RCEA rate tariffs and comparing it to the class and total system COS (revenue requirements). NewGen will develop customer bill comparisons to determine the rate impacts on different customer classes for different rate alternatives in coordination with RCEA. New rates will also be compared to forecasted Investor-Owned Utility (IOU) rates to ensure the rate competitiveness of RCEA.

Average bills and related impacts for each class will automatically be calculated to compare existing, COS-based, PG&E, and recommended new RCEA rates. Based on feedback from the rate review, we will revise or provide an optional or alternative rate design scenario such as a phase-in of rate changes or adjustments in customer, demand, or energy rate components. 133
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Task 5: Stakeholder/Board Presentation and Implementation Plan NewGen will provide the draft presentation and report to RCEA staff for feedback and any refinements.

NewGen will be available for an in-person presentation to the RCEA Board as needed. NewGen will also develop a report outlining the proposed rate options with associated impacts to customer classes.

Based on feedback from RCEA Board, NewGen will prepare a Rate Implementation Plan, which will describe the deliverables and milestone dates for the new rates and/or rate structures, with the goal of implementing these by July 1, 2026. This plan may include a gradual implementation of rate and rate structure changes for individual customer classes over an appropriate period to reduce the potential for rate shock for customers. The plan will include information for customers to inform them of adopted rate design changes and expected impact to their bills (utilizing average users for each customer class). This report will also include graphics that can be incorporated into handouts to detail the proposed rate impact for each rate class for RCEA to use in community education material and public presentations. Information to be developed by NewGen (with input from RCEA) will include graphics, direct mailers, and other data applicable for the RCEA website and handouts.

Optional Task 6 Customer Bill Comparison Tool:

Upon request of RCEA, and as an optional task, NewGen will develop a tailored customer bill comparison tool to either be used internally or housed on RCEA’s website for staff and customers. The intent of this tool will be to compare generation rates as a CCA or PG&E customer within RCEA’s service territory that will allow the user to select the most cost-effective CCA rate option among those applicable to their customer class based on their usage data.

Schedule for Completing the Scope of Work
NewGen proposes to complete this assignment within a 6-month period from Notice to Proceed.

Estimated schedule for completion of the tasks identified herein is provided in the graphic below:

If you have questions concerning this proposal or would like additional information, please contact me directly at (720) 259-1762 or [email protected]. We look forward to working with RCEA.

Sincerely,
NewGen Strategies and Solutions, LLC
Scott Burnham
Partner
Docusign Envelope ID: 051DE881-77F9-4209-B21D-3CE3EA14386F 134

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Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net
Table of Contents
A. COMPANY INFORMATION.......................................................................................................... 1 List of Subcontractors...............................................................................................................................1 Firm’s Business Information .....................................................................................................................2 Organization and Staffing Chart................................................................................................................3 Project Team.............................................................................................................................................3 B. STATEMENT OF QUALIFICATIONS............................................................................................... 5 Qualifications and Experience (Firm and Personnel)................................................................................5 Firm’s Expertise.....................................................................................................................................5 Project Experience with Electric Utilities..............................................................................................6 Recent Experience.................................................................................................................................7 Resumes..............................................................................................................................................10 Qualifications, Licenses, and Affirmative Statement..........................................................................11 Availability...............................................................................................................................................11 References ..............................................................................................................................................12 C. COSTS AND FEES ....................................................................................................................... 13 D. CONTRACT EXECUTION ............................................................................................................ 14 © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC
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Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net
A. COMPANY INFORMATION
List of Subcontractors
NewGen Strategies and Solutions, LLC (NewGen) does not propose to use any subcontractors for this engagement. Exhibit A is Included below.
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EXHIBIT A – LIST OF SUBCONTRACTORS
Subcontractor Name: __________________________________________________________________ Services for which Subcontractor is being used: _____________________________________________ Subcontractor qualifications: ____________________________________________________________ ____________________________________________________________________________________ Subcontractor’s relevant experience (attach separate page(s), as needed): _______________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Subcontractor Name: __________________________________________________________________ Services for which Subcontractor is being used: ______________________________________________ Subcontractor qualifications: ____________________________________________________________ ____________________________________________________________________________________ Subcontractor’s relevant experience (attach separate page(s), as needed): _______________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ (ATTACH ADDITIONAL SHEETS IF MORE THAN TWO SUBCONTRACTORS ARE REQUIRED) N/A
N/A
N/A
N/A
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Firm’s Business Information
NewGen’s Exhibit B is included below.
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EXHIBIT B – FIRM’S BUSINESS INFORMATION
Length of time your firm has been in business:

Length of time at current location:

List types and business license number(s):

Names and titles of all officers of the firm:

Is your firm a sole proprietorship doing business
under a different name? If yes, please indicate
sole proprietorship name and the name you are
doing business under:
☐Yes ☐No
Please indicate your Federal Tax Number:

Is your firm incorporated? ☐Yes ☐No
Name and remittance address that will appear
on invoices:

Physical Address:

Over 12 years
Over 3 years at 225 Union Blvd., Ste. 450,
Lakewood, CO 80228
Gretchen Zimmerman
275 W. Campbell Rd., Ste. 440,
Richardson, TX 75080
225 Union Blvd., Ste. 450,
Lakewood, CO 80228
Dave Yanke, President/CEO
Chris Ekrut, Treasurer/CFO
Tony Georgis, Secretary

1.California Department of Industrial Relations:

Registration No. PW-LR-1000817140

2.California Secretary of State Business License:

Entity No. 201610410901
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Organization and Staffing Chart
NewGen’s company organizational and staffing chart is below.

Project Team
NewGen evaluates the needs of each project and responds by assembling a Project Team of knowledgeable professionals who are uniquely qualified to provide the services needed. Our Project Teams include experts in cost of service (COS) and rate design, distributed energy resource (DER) technologies, application of emerging technologies at utilities, transmission rates and tariffs, and analytical support needed to accurately execute the work. NewGen seeks to be a trusted advisor to all our clients, and our team is committed to completing the identified services in a timely and professional manner. Team members have significant and recent experience in the development of CCA rate strategies, analyzing and integrating system and customer load profiles, financial planning, standby rates, and litigation. A summary of our proposed project Team bios are provided below. 140

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Scott Burnham, Partner | Project Role: Project Manager
Scott Burnham, Partner at NewGen, offers over 25 years of experience in the areas of project management, cost of service and rate design, asset valuation, and financial feasibility analysis. Scott leads efforts to create financial models that develop revenue requirements, cost allocation, financing for strategic capital and operating objectives, and rate/rate structure alternatives, ensuring our clients have reliable and defensible results. Additionally, Scott routinely presents study findings and recommendations to utility management, boards, city councils, and other governing bodies. He has developed and reviewed pro forma financial models to determine projected revenue and costs associated with various projects and financing approaches for a variety of power generation facilities. Scott is well-versed in cost allocation theories and methodologies, rate design concepts, and approaches, and in providing summary analyses and recommendations to industry clients. Scott co-leads the semi-annual Cost of Service and Rate Design class through EUCI, an industry conference organization, which is routinely attended by all types of utility stakeholders.

Carlo Bencomo-Jasso, Manager | Project Role: Assistant Project Manager Carlo Bencomo-Jasso joined NewGen as a Manager in April 2022. Mr. Bencomo-Jasso has over ten years of experience in the energy industry, with prior experience working on regulatory and resource planning issues in California, including rate and feasibility analysis for CCAs.

Brody Liebler, Consultant | Project Role: Project Analyst Brody Liebler joined NewGen as a full-time consultant in July 2024. He assists on cost of service and rate design projects, emphasizing data-driven analytics and applying his econometric analysis skills. Brody’s experience includes financial modeling, rate calculation, cost allocation analysis, and Microsoft Excel.

Alanna Daley, Consultant | Project Role: Project Analyst Alanna Daley joined NewGen as a Consultant in September 2024, applying financial modeling skills to a broad range of rate design projects for clients. Alanna has extensive experience analyzing utility billing data to project cash flow and financing scenarios as a part of utility rate studies.

Brian Dickman, Partner | Project Role: CCA Liaison
Brian Dickman is a Partner in NewGen's Energy Practice with over 20 years of experience in the utility industry and with a focus on regulatory analytics. He has extensive experience preparing and evaluating utility revenue requirement and cost allocation studies, developing utility avoided costs, and evaluating the impact of new initiatives (including green tariffs) and transactions on a utility and its customers.

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mergers and acquisitions, variable production cost simulations, valuations of potential asset acquisitions and other commercial opportunities, and pricing for Qualifying Facilities under the Public Utility Regulatory Policies Act. In addition to his extensive technical experience, Brian understands the regulatory governance process and has personally testified as an expert witness before the public utility commissions of California, Idaho, Indiana, Oregon, Utah, Washington, and Wyoming. Brian has led utility regulatory teams in the development of cost recovery filings in multiple state jurisdictions and the Federal Energy Regulatory Commission.

B. STATEMENT OF QUALIFICATIONS
Qualifications and Experience (Firm and Personnel)
Firm’s Expertise
NewGen is well qualified to provide Redwood Coast Energy Authority (RCEA) with the services identified in their Request for Proposal (RFP). We have significant national and local California experience, including our previous work with RCEA; we have completed numerous COS and rate studies, financial planning and analysis, expert witness testimony filings, appraisals and depreciation studies, and strategic planning projects for electric utility clients in California as shown in the following graphic. We also have specific experience with Community Choice Aggregators (CCAs), having completed financial planning and COS studies for seven CCAs.

Our team has a long history of working with municipal entities in California and across the country on a variety of critical regulatory, financial, and economic issues. As a company, we routinely provide insight and analysis for electric, water, wastewater, solid waste, natural gas, and other municipal utility areas.

We also understand the nuances of California’s wholesale power market as we routinely provide financial and utility consulting services for the growing number of CCA entities. 142

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Our team members have substantial experience navigating the dynamic electric market in the state of California, primarily with CCAs and public power clients who maintain diligent benchmarking against the state’s investor-owned utilities. Our experience includes:
▪ A wide range of publicly owned power utilities in California such as CCAs, cities just beginning to offer service (e.g., Moreno Valley), established public power utilities (e.g., Alameda Municipal Utilities), and communities considering municipalization (e.g., San Francisco). ▪ Multiple COS analyses and rate studies completed for public power utilities and CCAs in California, as well as strategic planning efforts, depreciation studies, and performance benchmarking studies. ▪ Evaluating assets for possible acquisition from California IOUs. Our franchise, municipalization, and acquisition work includes the City of San Francisco, the City of San Diego, and South San Joaquin Irrigation District.
▪ Unique insight into CCA efforts and cost-related issues or concerns as we support CCAs’ intervention in IOU regulatory proceedings before the California Public Utilities Commission (CPUC). We have assisted CCAs with their review and protest of PCIA rate applications for PG&E, Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E). We have also evaluated each of the three IOU’s general rate cases on behalf of CCA clients, focusing on the functionalization or unbundling of costs and underlying issues that will further benefit the CCAs’ cost structure and strategic goals.

NewGen’s engagement with California public power clients often involves understanding the evolution of the California energy market as it pertains to increasing Renewable Portfolio Standards, DER impacts, NEM successor tariffs, and end-use customers’ desire for greater flexibility and control in choosing clean power resources for their energy consumption. We are also very aware of the issues surrounding Proposition 26 and have developed various strategies and solutions in coordination with internal and external counsel, including representatives from Colantuono, Highsmith & Whatley, P.C. We have supported our clients in navigating the convergence of multiple distributed energy resources including solar, fuel cells, energy storage, and electric vehicles as it pertains to their operations, financial condition, and planning efforts.

Project Experience with Electric Utilities
NewGen has national expertise and local California experience, having completed numerous COS and rate studies, appraisals and depreciation studies, and strategic planning projects for electric utility clients. We have had over 100 Municipal/Public Utility clients in various utility areas. ▪ Our specific CCA financial planning and COS experience includes studies for the following entities:
• Clean Power Alliance
• San Jose Clean Energy
• Central Coast Community Energy
• Peninsula Clean Energy
• Orange County Power Authority
• Clean Power San Francisco
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• San Diego Community Power
▪ NewGen was also engaged by San Diego Community Power to review the SDG&E forecast for the Energy Resource Recovery Account (ERRA), PCIA, and Portfolio Allocation Balancing Account (PABA). ▪ NewGen was retained by a confidential California CCA to assist with the development of initial analytics for AMI data.
▪ NewGen worked with CalCCA to build an analytical tool to dynamically project PCIA rates for multiple IOUs and to assist CCAs with their own financial planning and analysis, including potential impacts on customers’ rates.

In addition to the aforementioned CCA-specific experience, NewGen has completed more than 50 projects in the past five years in California. Specifically, members of the NewGen team were involved in COS and/or rate-related studies for the following California entities:
▪ City of Alameda (2015–2020)
▪ City of Anaheim (2016–2017 and 2019, 2023)
▪ City of Burbank (2022–2023)
▪ City of Banning (ongoing)
▪ City of Glendale (2017– Present)
▪ City of Pasadena (2018–Present)
▪ City of Redding (2016–2017, 2020, 2023, and ongoing)
▪ City of Riverside (2016–2018 and 2022-2023)
▪ City of Santa Clara (2020–2021)
▪ City of Vernon (2015–Present)
▪ Confidential Client (2017–2019)
▪ Imperial Irrigation District (2020–Present)
▪ Merced Irrigation District (2015–Present)
▪ Turlock Irrigation District (2015, 2024)
Recent Experience
The NewGen Project Team is well qualified to provide RCEA with the services identified in the RFP. As described above, we have worked with a large number of utilities and other entities in California. In addition, we have worked with other utilities and other entities around the country on issues for cost of service and rate issues, as well as load and load shape forecasting, distributed generation economic feasibility and electric bill savings, and AMI data analytics.

Following are five project descriptions related to client engagements that NewGen has completed which we believe are relevant to RCEA’s Study.
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Central Coast Community Energy – Cost-Based Retail Rate Study, Ongoing Rate Design Support, and AMI Data Analytics
Central Coast Community Energy (3CE) retained a separate consulting firm in 2019 to undertake a Cost of Service Analysis (COS) and rate design study with the intention of developing cost-based rates for certain customers. The COS and rate design study were completed in May 2020, but the convergence of several factors resulted in 3CE postponing adoption of cost-based rates. 3CE retained NewGen in August 2020 to conduct a peer review of the prior COS and rate design study, which resulted in recommendations in four main areas: 1) class cost allocation, 2) rate design, 3) competitiveness, and 4) net energy metering. Based on the peer review findings, 3CE requested that NewGen perform a new COS and rate design study to incorporate the recommendations, update financial projections, and develop new cost-based rates in collaboration with 3CE’s executive team.

In May 2020, NewGen was retained by 3CE to develop a cloud-based AMI data analytics platform. The platform combines over 20 billion data points from interval data, account data, billing data, geographic information, regional weather, and other datasets into a relational server. Users can access the server with near-instantaneous response through dashboarding tools (Power BI, Tableau, etc.), Microsoft Excel connections, and Python packages. The platform also incorporates machine learning for advanced load forecasting, anomaly detection, and customer segmentation.

NewGen has also provided ongoing rate making and rate analytics support for 3CE since 2022. This support has included the development of a rate calculator tool to calculate bill comparisons quickly and dynamically for existing or prospective 3CE customers to benchmark against PG&E’s and SCE’s current rates. The rate calculator tool includes the capacity to evaluate more than 100 meters, each with 15- minute interval data, to quantify the savings offered by 3CE as compared to the incumbent IOU. The tool was adopted and is currently used by 3CE staff to quantify the value of 3CE’s offerings. NewGen also provided quality control and assurance for 3CE rate and financial staff’s rate modifications or adjustments to 3CE rates in response to changes in the regulatory policy, IOU billing requirements, or IOU rates.

Clean Power Alliance – Community Choice Aggregator (CCA) Cost of Service Study NewGen worked with Clean Power Alliance (CPA) to complete its first full COS and Rate Design Study (Study) since forming as a CCA. CPA is one of the largest CCAs in the country with a revenue requirement approaching $1 billion. The objective of this Study was to quantify the cost to provide generation service to CPA’s various customer groups and to provide strategic insight into CPA’s competitive position relative to the incumbent IOU. NewGen designed a COS model that applied traditional COS methods to functionalize and classify costs for allocation to each customer class, while also considering CPA’s financial management targets. Detailed AMI and procurement cost data was analyzed to support defensible allocations of costs and to develop cost-based rate adders for CPA’s renewable energy program offerings.

Because CCA customers are allowed to return to IOU bundled service at any time, CCAs must view their rates through a competitive lens while ensuring adequate cost recovery and financial security. After determining the cost to serve CPA’s customers, NewGen first evaluated whether CPA’s current rates were 145

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adequate to recover projected costs by customer class. The project team then developed a rate comparison tool to analyze how CPA’s cost-based rates compared to rates customers would pay to the incumbent IOU. NewGen’s extensive experience representing CCAs in regulatory proceedings to review IOU generation rates and departing load exit fees enabled us to provide unique and timely insight into CPA’s competitive position and to develop a strategy that allowed CPA to set rates at a competitive level, increase operating reserves, and plan for future contingencies. NewGen also trained the CPA staff on the COS and rate tools for their future use. CPA has successfully maintained the COS model and updated it after the completion of our project.

Orange County Power Authority – Financial/Economic Consulting Orange County Power Authority (OCPA) is a joint powers authority located within Orange County, formed on November 20, 2020, for the purpose of implementing a community choice aggregation program for the municipalities of Buena Park, Fullerton, Huntington Beach, and Irvine as well as the County of Orange. In October 2021, OCPA engaged NewGen to provide support in development of OCPA’s implementation plan, stakeholder engagement, rate setting strategy, financial planning and analysis, and customer load/information analysis. In support of these tasks, NewGen developed several models for OCPA’s internal use including a 10-year budget and planning model, cost of service model, and rate design model.

Working with OCPA staff, NewGen engaged OCPA’s board and member city councils to present and provide scenario analysis, rate impacts, and industry knowledge to help in the selection of each entity’s default product choices. These engagements resulted in more than 90% of OCPA’s projected power mix coming from renewable resources at launch.

NewGen continues to work with OCPA to provide ad-hoc financial planning and analysis support, support of launch requirements, and customer data analytics.

Peninsula Clean Energy – Data Warehousing, Cost of Service, Rate Design, and Legislative Support Peninsula Clean Energy (PCE) is the community-led electricity provider for San Mateo County and, beginning in 2022, for the City of Los Banos.

PCE’s mission is to reduce greenhouse gas (GHG) emissions and reinvest in its community. To support this mission, PCE engaged NewGen to develop a data warehouse to support rapid, accurate, secure, and flexible analysis of large volumes of energy data and associated attributes. The warehouse currently provides users access to a wide range of pertinent datasets such as interval data, invoice data, customer information, weather patterns, California Independent System Operator (CAISO) market prices, and PCE power project performance and datasets to support electrification studies including housing stock, vehicle stock, and gas usage. The data warehouse architecture is based in Google Cloud Services and includes automated data pipelines to data sources, import and cleaning functions within the data warehouse, and linkage to a suite of analysis tools including but not limited to Excel, Tableau, BigQuery, Data Studio, specialized analysis systems, or custom-built analysis tools.

In 2022 and 2023, PCE contracted with NewGen for ongoing support of the data warehouse and to assist with various strategic studies in support of PCE’s customer and energy programs. NewGen also supported 146

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10 Thoughtful Decision Making for Uncertain Times
policy efforts to develop a new electrification incentive rate to support additional electrification efforts in the state. The innovative approach to rate designs evaluated options such as marginal pricing for additional or new electrification energy consumption above identified baselines.

In 2023, NewGen also began work on a COS and rate study. NewGen designed a COS model that applied traditional COS methods to functionalize and classify costs for allocation to each customer class, while also considering PCE’s desired financial performance and targets/goals. PCE’s territory is diverse from a weather and climate perspective; thus, NewGen evaluated the impacts of the coastal versus inland and warmer territories. PCE has utilized a strategy of remaining competitive with and tracking PG&E’s rate changes. The COS results informed the competitive position of PCE and eventual rate recommendations for each class. The COS was used to inform margins on the total revenues and by class for the rate recommendations while fully understanding their product’s competitive position with the IOU.

San Jose Clean Energy – Cost of Service and Rate Study
NewGen worked with San Jose Clean Energy (SJCE) to complete its first full COS and Rate Design Study (Study) since forming as a CCA. The goal of the Study was to quantify the cost to provide generation service to SJCE’s various customer groups and to provide strategic insight into SJCE’s competitive position with PG&E, the incumbent IOU generation services provider, while understanding different scenarios that would further contribute to the CCA’s financial stability. NewGen designed a COS model that applied traditional COS methods to functionalize and classify costs for allocation to each customer class while also considering SJCE’s financial performance and goals. As SJCE had utilized a strategy of aligning with and tracking PG&E’s rate changes, the CCA desired a more forward-looking, quantitative, and detailed analysis of their costs while fully understanding their product’s competitive position with the IOU.

Because CCA customers have the power to choose providers, CCAs must view their rates through a competitive lens while ensuring adequate cost recovery and financial security. After determining the cost to serve SJCE’s customers, NewGen then evaluated if current rates were adequate to recover projected costs overall and by each customer class. This benchmarking included scenario analyses to evaluate varying levels of overall margin contributions and additional contribution to cash reserves for the CCA.

Based on the scenario analyses, SJCE chose a rate strategy to take advantage of elevated IOU pricing to offer a higher value product at a lower cost than the competition, while simultaneously ensuring financial stability and performance in the current and subsequent years.

The project team then developed a rate model to analyze cost-based rates compared to rates customers would pay to the incumbent IOU. NewGen integrated its extensive experience with CCA-related regulatory proceedings to provide unique and timely insight into the trends for the PCIA rates and SJCE’s competitive position for each customer class. NewGen also trained the SJCE staff on the COS and rate tools for their future use.

Resumes
Full resumes for each of the proposed team members follow this section. 147
148
SCOTT H. BURNHAM
Partner
Thoughtful Decision Making for Uncertain Times 2
Additionally, he has facilitated citizen advisory groups and stakeholder processes to solicit input into rate design.

Mr. Burnham’s cost of service and rate design clients include:
 American Samoa Electric
Utility, American Samoa
 Arizona Public Service
Company, AZ
 Aurora, CO
 Austin Energy, TX
 Brenham, TX
 Brownfield, TX
 City of Longmont (CO) /
Longmont Power and
Communications (LPC)
 Colorado Springs Utilities, CO
 Dover Electric System, DE
 Farmington Electric Utility
System, NM
 Fayetteville Public Works
Commission (NC)
 Fort Collins Utilities, CO
 Georgetown Electric Utility, TX
 Lafayette Consolidated
Government, LA
 New England States
Committee on Electricity
(NESCOE)
 Peninsula Clean Energy, CA
(CCA)
 Pedernales Electric
Cooperative, Inc.
 Platte River Power
Authority, CO
 Port of Oakland, CA
 Redding Electric Utility, CA
 Riverside Public Utilities, CA
 San Francisco Public Utility
Commission, CA
 Silicon Valley Power, CA
 South Carolina Public Service
Authority (Santee Cooper), SC
 Turlock Irrigation District, CA
 Vermont Public Service
Department, VT
 Virgin Islands Water and
Power Authority, U.S. Virgin
Islands
Feasibility Studies and Financial Analyses
Mr. Burnham has developed financial models to inform clients’ decisions regarding the associated impacts of multiple technical and financial feasibility scenarios. Mr. Burnham reviews clients’ financial projections and structures. He also develops pro forma financial models to determine projected revenue and costs associated with various projects and financing approaches for power generation and distribution facilities. These financial models focus on developing operating results, debt service coverage ratios, and other applicable financial metrics within the terms of a proposed financing effort. His models and associated reports have been relied upon to assess investment decisions in capital markets. Mr. Burnham has developed projected operating results for consulting engineering reports and associated financing certifications. Further, he provided financial models that included the technical, financial, and economic input parameters to optimize the value of multiple generation sitting alternatives. He also developed a pro forma financial model for portfolio financing over 7,500 megawatts of generation capacity. Clients include:
 Arizona Public Service, AZ
 Black Hills Energy, CO
 Brownsville Public Utilities
Board, TX
 Central Electric
Cooperative, SC
 City of Ann Arbor, MI
 City of Chicago, IL
 City of Decorah, IA
 City of San Diego, CA
 City of Slayton, MN
 City of Valley Center, KS
 CORE Electric Company, CO
 Duke Energy, NC
 El Paso County, CO
 Ember Infrastructure LLC, NY
 Escalante H2 Power, TX
 Fortis Capital Corp.,
Santiago, Chile
 Lafayette Consolidated
Government, LA
 Vistra Energy
 Wyoming Municipal Power
Agency, WY
149
150

CARLO BENCOMO-JASSO
Manager
Thoughtful Decision Making for Uncertain Times 2
Energy Utility Industry Analyst
▪ Conduct economic impact and cost-benefit
analyses for energy projects, including
renewable energy development projects.
▪ Create project data analytics reports, discovery
requests, and case testimony.
▪ Perform collection, cleaning, and statistical
analysis of energy commodity pricing and power
data for various projects using Excel and R.
▪ Perform load forecasting and capacity market
modeling.

Solar Rooftop Program Analyst
▪ Aid in identifying and creating leasing
agreements with commercial property owners
for installing solar arrays 1 MW and larger in
size.
▪ Create presentations and weekly status reports
on site acquisitions and leasing agreements for
senior management.
▪ Help create marketing materials and emails for
program promotions and outreach.
▪ Maintained program databases and addressed
program inquiries.

PREVIOUSLY FILED TESTIMONY
▪ Rhode Island Public Utilities Commission Docket
No. 4692 and 4805 – Conclusions and Summary
of Opinions of Richard Hahn, Matthew Loiacono,
and Carlo Bencomo-Jasso on Behalf of the Rhode
Island Division of Public Utilities and Carriers.

March 19, 2018.
▪ Rhode Island Public Utilities Commission Docket
No. 4692 and 4805 – Testimony of Carlo
Bencomo-Jasso on Behalf of the Rhode Island
Division of Public Utilities and Carriers on
National Grid’s 2018 Annual Retail Rate Filing and
2018 Renewable Energy Standard Charge and
Reconciliation Filing. March 28, 2018
▪ CPUC Application 19-11-019 – Direct Testimony of
William A. Monsen and Carlo Bencomo-Jasso on
Behalf of the California Farm Bureau Federation
Concerning Revenue Allocation and Agricultural
Rate Design. November 20, 2020.
▪ CPUC Application 22-05-025 – Direct Testimony of
Carlo Bencomo-Jasso on Behalf of San Diego
Community Power and Clean Energy Alliance in
San Diego Gas and Electric Company’s 2023 ERRA
Forecast Proceeding. August 22, 2022.
▪ CPUC Application 22-06-001 – Direct Testimony of
Carlo Bencomo-Jasso on Behalf of San Diego
Community Power and Clean Energy Alliance in
◼ CPUC Application 22-05-023 – Direct Testimony
of Carlo Bencomo-Jasso on Behalf of San Diego
Community Power in San Diego Gas and Electric
Company’s 2022 Green Access Programs
Proceeding. January 20, 2023.
◼ CPUC Application 23-05-013 – Direct Testimony
of Carlo Bencomo-Jasso on Behalf of San Diego
Community Power and Clean Energy Alliance in
San Diego Gas and Electric Company’s 2024
ERRA Forecast Proceeding. August 18, 2023.
◼ CPUC Application 23-06-002 – Direct Testimony
of Carlo Bencomo-Jasso on Behalf of San Diego
Community Power and Clean Energy Alliance in
San Diego Gas and Electric Company’s 2022
ERRA Compliance Proceeding. December 22,
2023.
◼ CPUC Application 23-01-008 – Direct Testimony
of Carlo Bencomo-Jasso on Behalf of San Diego
Community Power and Clean Energy Alliance in
San Diego Gas and Electric Company’s 2024
General Rate Case Phase 2 Proceeding, January
8, 2024.
◼ CPUC Application 23-05-010 – Direct Testimony
of Carlo Bencomo-Jasso on Behalf of the
California Community Choice Association in
Southern California Edison’s 2025 General Rate
Case Proceeding, February 29, 2024.
151
152

BRODY LIEBLER
Consultant
Thoughtful Decision Making for Uncertain Times 2
Huron Capital Partners
Private Equity Intern
 Examined CIMs for potential platform and add on acquisitions for Flagship and Flex Equity Funds.  Engaged in calls with bankers regarding logistics of companies to better understand their investment thesis and value proposition.
 Conducted detailed diligence on prospective investments, including analysis of business model and assisted in financial modeling to value potential targets. 153
154
155

BRIAN DICKMAN
Partner
Thoughtful Decision Making for Uncertain Times 2
Electric Cost of Service, Rate Design, and Regulatory Analysis (cont.)  Lubbock Power and Light, TX
 Minnesota Power, MN
 New York Power Authority, NY
 Portland General Electric, OR
 San Diego Community
Power, CA
 San Jose Clean Energy, CA
 Silicon Valley Clean Energy
Authority, CA
 Vermont Gas Systems, VT
Non-Utility Clients
A sample of Mr. Dickman’s non-utility clients includes the following:
 Blackstone Group, NY
 California Community Choice
Association, CA
 Facebook, CA
 Hemlock Semiconductor, MI
 Newmont Mining, NV
 SABIC Innovative Plastics, IN
 Tri-County Metropolitan
Transportation District, OR
 Vistra Energy, TX
Expert Witness and Litigation Support
Mr. Dickman provides comprehensive expert witness testimony related to utility revenue requirements, cost of service, rate design, and other ratemaking issues before state and local regulatory bodies. He has provided litigation support in wholesale and retail jurisdictions, including California, Idaho, Indiana, Oregon, Washington, Wyoming, Utah, the Federal Energy Regulatory Commission, and Ontario Energy Board. Mr. Dickman offers expert witness testimony and litigation support in the following areas.

Revenue Requirement | Cost Allocation | Rate Design
Mr. Dickman prepared revenue requirements, inter-jurisdictional cost allocation, coincident peak allocation studies, and supporting testimony for PacifiCorp over many years. He now provides litigation support and expert testimony for clients wishing to review utility filings on revenue requirements, cost allocation, and rate design, including program-specific rate tariffs.

Power Supply Costs | Stranded Costs | Rate Adjustment Mechanisms Mr. Dickman has prepared and evaluated variable power supply cost forecasts, power supply cost balancing accounts and other rate mechanisms, stranded costs, and exit fees for departing loads. Since 2019, Mr. Dickman has actively participated in PCIA matters in California on behalf of CCA clients.

Avoided Costs | Resource Valuation
Mr. Dickman provided expert testimony for PacifiCorp on various components included in a proposed method for valuing solar generation resources, the calculation of Public Utility Regulatory Policies Act avoided costs for large resources and support of modifications to the avoided cost calculation for small resources.

WORKSHOPS AND PRESENTATIONS
Host organizations and the topics Mr. Dickman presented are displayed below.

Advanced Workshop in Regulation and Competition, Center for Research in Regulated Industries, 2018
Customer Choice at a Vertically Integrated Utility
Advanced Workshop in Regulation and Competition, Center for Research in Regulated Industries, 2018 156

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Thoughtful Decision Making for Uncertain Times 11
Qualifications, Licenses, and Affirmative Statement
All qualifications and licenses are described in the Project Team members’ resumes. NewGen affirms that our firm and all assigned key professional staff are licensed to practice in California.

Availability
NewGen is committed to remaining available and actively participating in meetings as outlined in the proposal requirements. We understand the significance of effective communication and collaboration in achieving successful project outcomes, and we are dedicated to ensuring that these aspects are upheld throughout our partnership.

Our Project Team recognizes that regular meetings are essential for establishing a solid working relationship, fostering transparency, and promoting progress. We are committed to being responsive, reliable, and accessible at all project stages. The following bullets outline our approach to maintaining availability:
▪ Prompt and Reliable Communication: During our kick-off meeting, we will establish clear communication channels to facilitate efficient communication exchange. Our team will promptly respond to emails, phone calls, or other preferred methods of communication and address urgent matters immediately.
▪ Regular Meeting Schedule: We will work closely to establish a meeting schedule accommodating the project’s needs. Our proposal includes regular check-ins to review project progress, address challenges, and align our efforts with the project requirements. ▪ Flexibility and Adaptability: We understand unforeseen circumstances may arise, requiring meeting schedule adjustments. In those instances, we will work to accommodate any necessary changes. Our team’s flexibility ensures that we can meet your needs and maintain progress without compromising the quality of our collaboration.

Prioritizing availability and regular meetings fosters a productive partnership based on open communication, shared insights, and timely decision-making. This collaborative approach will contribute to the achievement of project goals.
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References
NewGen encourages RCEA to contact any of the representative professional references below. These clients can speak to our ability to provide quality work similar to the services requested by the PLC. We are happy to provide additional references upon request.

Reference Details Principal Representative Details
Central Coast Community Energy
Project Name: Cost-Based Retail Rate Study, Ongoing Rate Design Support, and AMI Data Analytics
Approximate Cost of Project: $86,000 for 2022 Rate Study Address: 70 Garden Ct, Ste 300, Monterey, CA 93940
Completion Date: June 2023
Project description is included under Recent Experience.

Contact: Mary Federico, Billing Operations and Rates Analyst Orange County Power Authority
Project Name: Financial/Economic Consulting
Address: P.O. Box 54283, Irvine, CA 92619-4283
Approximate Cost of Project: $123,000 for 2021 Financial and Economic Consulting Services
Completion Date: Ongoing
Project description is included under Recent Experience.

Contact: Tiffany Law, Chief Financial Officer
San Jose Clean Energy
Project Name: Cost of Service and Rate Study
Address: 200 E. Santa Clara St., San José, CA 95113
Approximate Cost of Project: $50,000 for General Consulting Completion Date: 2023
Project description is included under Recent Experience.

Contact: Zachary Struyk, Assistant Director
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Thoughtful Decision Making for Uncertain Times 13
C. COSTS AND FEES
NewGen proposes to conduct the enclosed Scope of Services on a time-and-materials basis for an estimated not-to-exceed budget of $106,300, which includes all estimated labor and expenses (including reasonable travel-related expenses) but excludes the optional Rate Comparison Tool task. Table 1 below provides a summary of the estimated labor and expense-related costs by task to provide the scope of work described herein.

Table 1
Costs and Fees
Task
Labor
Estimate
Expense
Estimate Total
Task 1: Data Request/Kickoff Meeting $8,900 $1,600 $10,500 Task 2: Revenue Requirement $26,500 $0 $26,500
Task 3: COS Analysis $20,900 $0 $20,900
Task 4: Rate Strategy and Rate Design $24,600 $0 $24,600 Task 5: Report/Present Results $22,200 $1,600 $23,800
Total Without Optional Task $103,100 $3,200 $106,300
Rate Comparison Tool (Optional) $10,600 $0 $10,600
Total with Optional Task $113,700 $3,200 $116,900
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14 Thoughtful Decision Making for Uncertain Times
NewGen proposes to conduct this Study on a time-and-materials basis utilizing the hourly rates and estimated hours for staff, as indicated by task in Table 2 below. NewGen does not propose to work with any subcontractors.

Table 2
Estimated Hours and Rates
Tasks
Burnham
Bencomo-Jasso Daley Liebler Dickman Admin
Expenses Total (1)
Task 1: Data
Request/Kickoff Meeting
12 10 4 4 2 4 $1,600 $10,500
Task 2: Revenue
Requirement
16 16 48 48 2 0 $- $26,500
Task 3: Cost of Service
Analysis
16 16 32 32 2 0 $- $20,000
Task 4: Rate Strategy
and Rate Design
24 24 32 32 0 0 $- $24,000
Task 5: Report/Present
Results
24 24 16 16 2 18 $1,600 $23,800
Total Without Optional
Task
92 92 132 132 8 22 $3,200 $106,300
Rate Comparison Tool
(Optional)
4 4 24 24 0 0 $- $10,600
Total With Optional
Task
96 94 156 156 8 22 $3,200 $116,900
(1) Values may not add due to rounding.

D. CONTRACT EXECUTION
There are none.
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• A Request for Proposals was issued on April 11 for:
• Cost of Service Analysis
• Rate Design and Impact Analysis
• Rate Implementation Plan (if RCEA moves forward with changes) • Six proposals received June 6
•Due to planned time off and other delays, a
committee of three Staff Directors completed
proposal review on July 8
Cost of Service and Rate Design
Proposal Evaluation
• The proposal
from NewGen
Strategies &
Solutions scored
98 out of 100;
the second
highest score
was 82.

NewGen
Strategies & Solutions
• Completed Cost of Service
and rate studies for several CA
CCAs
• Provides financial and utility
consulting for CCAs
• Experience supporting CCA’s
intervention in regulatory
proceedings before the CPUC
• Understands CA energy
market and is aware of issues
surrounding Proposition 26
• Large team with seasoned
leaders
• Lowest cost
Image: NewGen’s proposed timeline

STAFF REPORT
Agenda Item # 11.1
AGENDA DATE: July 24, 2025
TO: Board of Directors
FROM: Elizabeth Burks, Executive Director
SUBJECT: Executive Director’s Report

SUMMARY
Executive Director Elizabeth Burks will provide updates on topics as needed.

RECOMMENDED ACTION
None. (Information only.)

ATTACHMENT
None.
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