Board of
Directors
Regular Meeting
March 27, 2025
Welcome
and
Call to
Order
Roll
Call
4 Land
Acknowledgement
6 Finance and Risk Management Committee
Chair Ditas Yamane
City of National City
Vice Mayor
Director Michael Inzunza
City of Chula Vista
Councilmember
Vice Chair Genevieve Suzuki
City of La Mesa
Councilmember
Items to be
Added,
Withdrawn or
Reordered on
the Agenda
Non-Agenda
Public
Comment
9 Consent
Calendar
1. Approve February 27, 2025, Meeting Minutes
2. Receive and File Treasurer’s Report for Period Ending January 31, 2025
3. Receive and File Update on Programs
4. Receive and File Update on Power Services
5. Receive and File Update on Customer Operations
6. Receive and File Update on Human Resources
7. Receive and File Update on Marketing, Public Relations, and Local Government Affairs
8. Receive and File Update on Regulatory and Legislative Affairs
9. Receive and File Community Advisory Update
10. Approve Strategic Plan Goals for FY2026-2028
Public
Comment
on Consent
Calendar
11 Regular
Agenda
11. Approve Community Advisory Committee Member for
the City of La Mesa
12. Approve Contract with Power Settlements Consulting
and Software, LLC for Professional Services for Energy
Trading Risk Management in a not-to-exceed amount of
$4,115,956
13. Approve Resource Adequacy and TB4 Agreement with
Athos Storage, LLC
14. Approve Amended and Restated Renewable Power
Purchase Agreement with Yellow Pine Solar III, LLC
15. Approve Amendments to Long-Term Resource Adequacy
Agreements with EnerSmart
16. Approve Energy Consulting Services Agreement with
Pacific Energy Advisors, Inc. up to $775,000 for Energy Consulting Services through March 31, 2029
12 Item No. 11
Recommendation:
Approve the Appointment of Shaun Sumner to the Community Advisory Committee for the City of La Mesa.
Presenter:
Jack Clark, Chief Operating Officer
Approve Community Advisory Committee Member for the City of La Mesa 13 • The Community Advisory Committee (CAC) includes 2 members from each member agency.
• Appointments are to prioritize residents from diverse social, economic, and racial backgrounds that are representative of all residents within Community Power's service territory.
• A CAC vacancy opened for the City of La Mesa in December 2024. Staff promoted the vacancy via social media, the Board of Directors, the CAC and directly engaging with member agency staff and the public; and worked with Director Suzuki to review the process and determine a nomination for appointment based on Membership Terms & Criteria.
• Director Suzuki has nominated Shaun Sumner.
Membership Criteria & Selection Process
Public
Comment
for Item
No. 11
15 Item No. 12
Recommendation:
Approve a contract with Power Settlements Consulting and Software, LLC (“Power Settlements”) with a not-to-exceed amount of $4,115,956 over the initial term of five years, and a yearly automatic renewal after the initial term, until San Diego Community Power (Community Power) provides a notice of termination, for Energy Trading Risk Management Subscription Software, Update and Support Services, and Hosting Services, and authorize the Chief Executive Officer to execute the contract.
Presenter:
Kenny Key, Director of Power Contracts
Approve Contract with Power Settlements Consulting and Software, LLC for Professional Services for Energy Trading Risk Management in a not-to-exceed amount of $4,115,956
16 What is an Energy Trading Risk Management (ETRM) system? Front Office Middle Office Back Office
Deal Capture and Reporting Risk Modeling (VaR) Settlements & Shadow Settlements
Forecasting Credit Risk Invoicing
REC Management P&L Modeling and Reporting AP/AR Integrations 17 ETRM: Why / What / How
Why Community Power needs an ETRM system?
Critical to manage contracts and portfolio, settle invoices, report on positions, and to gauge and evaluate risk
What the new ETRM system will accomplish?
Power service strategic goal “Manage portfolio to manage risk, cost, and reliability objectives through risk management tools, sufficient staffing, and staff training” Allow SDCP to have direct access to its data, reporting, and risk models How the new ETRM system will reduce risk?
Advanced stochastic and simulation-based modeling at the project and portfolio level Reduce reliance on third party contractors
18 ETRM: RFP Background
• Community Power staff ran ETRM Request For Proposals (RFP) in 2024 • Shortlisted 2 finalists:
• Took primary vendor contract to Community Power Board for approval in Aug 2024 • One vendor was left on waitlist
• Challenges on delivery with Primary, Community Power staff is recommending to move to the waitlisted finalist
19 Power Settlements: Overview
• Software and services company dedicated to the power industry • Headquartered in Glendora, CA
• Founded in 2007
• Privately owned, stable & secure
• Wholly owned subsidiary of Yes Energy, LLC
• Organically developed software
• Approximately 40 employees & growing
• Approximately 50 customers
• 100% of Power Settlements customers are referenceable 20 Power Settlements: Overview
Capabilities
• End-to-end solution for structured
and non-structured markets
• Advance bidding
• Scheduling inside and outside of
markets with integrated e-tagging
• Best-in-class settlements for
markets, complex contracts &
transmission
• Direct data access & visualization
Features
• Best-in-class support
• Cloud capable
• Direct & API data access
• Daily processing
Vision
• PowerCore bridges the gap
between the Markets,
SCADA and the General
Ledger
21 BANC
Power Settlements: Partial Customer List
22 • Approve contract with Power Settlements
• Budget Impacts:
• Do Not Exceed limits: $4,115,956 over 5 years
• The proposed costs for ETRM vendor was included in the FY 2024-25 operating budget approved by the Board on June 27, 2024, as well as the budget update approved on February 27, 2025
• Community Power expects these contracts to be cost neutral to the approved operating budget based on the approved ETRM vendor budget and savings in other budget items that will result from bringing these services in-house
Staff Recommendation
Public
Comment
for Item
No. 12
24 Item No. 13
Recommendation:
Approve the proposed 15-year Resource Adequacy and TB4 Agreement with Athos Storage, LLC in substantially final form for a 200 MW (4-hour) battery energy storage facility and authorize the Chief Executive Officer to execute the agreement.
Presenter:
Andrea Torres, Associate Director of Origination
Approve Resource Adequacy and TB4 Agreement with Athos Storage, LLC 25 Athos Storage: Project Summary
• The Athos Storage LLC (Athos) project is a stand-alone battery storage project being developed by SB Energy (SBE)
• 200/800 MWh (4-hour) lithium-ion battery
• Location: Riverside
26 Athos: Key Terms
• Product: 200 MW/4-hr Resource Adequacy (RA) and TB4 hedge • Source: Replaces prior contract approved in January 2024 for a 5-year RA-only contract • Pricing: Fixed for a 15-year term
• Timeline: Guaranteed Commercial Operation Date is January 1, 2027 • TB4 (top-bottom 4): fixed monthly energy settlement rate from Community Power (Buyer) to Athos (Seller) netted against a daily energy settlement rate paid by Athos to Community Power based on the sum of the 4 highest hourly locational marginal prices (LMPs) at CAISO trading hub SP15 in the Day-Ahead Market for such day, minus the sum of the 4 lowest hourly SP15 LMPs
• Performance: Community Power would receive financial compensation in the event of Seller’s failure to successfully achieve certain development milestones as well as Seller’s failure to deliver guaranteed RA amounts once operational 27 SB Energy Developer Experience
• Founded in 2019, SBE is backed by SoftBank Group Corp. and Ares Climate Infrastructure, allowing SBE to finance 100% of the projects it develops, owns, and operates • SBE is a California-based solar and storage developer, owning and operating 1.4 GWac of solar projects in US, including 450 MWac of solar projects operating in California with 3 GWac of solar and 4.5 GWac of storage in its California pipeline, including the Pelicans Jaw project • In December 2023, SBE received "Renewables Deal of the Year" award from Project Finance International (PFI) for reaching financial close on 1.3 GWs of solar projects and being among the first to take advantage of the domestic content adder, a provision in the IRA designed to strengthen America’s manufacturing base
28 Athos: Staff Analysis
• Commencing in 2027, Athos will contribute 200 MW towards Community Power’s resource adequacy obligations
• TB4 hedge agreements maximize the energy arbitrage value over 4 hours of each day as well relieve Community Power of bidding and scheduling responsibilities, which is required for standard energy toll agreements
• Pricing is competitive with comparable product offerings received from Community Power’s 2024 All-Source RFO
• The long-term purchase of capacity and energy arbitrage value will provide cost certainty over the term of this agreement
29 Athos: Workforce Development and Community Benefits
• SBE is committed to using union labor at the project and has committed to entering into a Project Labor Agreement
• Project development will bring approximately 45-50 clean-energy jobs during construction and approximately 2 full-time equivalent jobs during operations • SBE will be providing a $200,000 contribution to the community benefits fund within 60 days of commercial operation
Public
Comment
for Item
No. 13
31 Item No. 14
Recommendation:
Approve the proposed Amended and Restated Renewable Power Purchase Agreement with Yellow Pine Solar III, LLC and authorize the Chief Executive Officer to execute the agreement.
Presenter:
Kenny Key, Director of Power Contracts
Approve Amended and Restated Renewable Power Purchase Agreement with Yellow Pine Solar III, LLC
32 Yellow Pine 3: Background
• Shortlisted from Community Power’s
October 2022 Renewable + Storage RFP
• Approved by Community Power BOD June
2023
• Project Details:
• Co-located 35 MWac solar + 35 MWac
4-hour battery energy
• Developer: NextEra
• Location: Clark County, NV
• GCOD: 10/1/2025
• Due to delays in network upgrades, viable
COD is no longer in 2025
33 Yellow Pine 3: Key Terms
• Product: Energy, RECs, Capacity, Ancillary Services and Resource Adequacy benefits • Pricing: Fixed for a 20-year term
• Timeline:
• Guaranteed Commercial Operation Date is June 1, 2027
• Guaranteed Resource Adequacy Date is June 1, 2028
• Community Power would receive financial compensation in the event of seller’s failure to successfully achieve certain development milestones as well as seller’s failure to meet guaranteed generation, storage capacity, availability, and efficiency rates 34 Yellow Pine 3: Amendment Scope
• Guaranteed Commercial Operations Date: 2027 vs. 2025
• Pricing reduction based on the modified COD
• Clean up edits for resource availability calculations and slice of day resource adequacy accounting
35 Yellow Pine 3: Project Summary – Battery Technology
• Industry testing:
• Batteries used in their facilities undergo rigorous industry testing and certification • This ensures that the cell and module designs are robust • Safety systems:
• Each container is equipped with fire protection and control systems to comply with National Fire Protection Association (NFPA) standards
• Temperature management:
• Each facility is equipped with its own thermal management system to ensure it operates within a prescribed temperature range
• Detection:
• Sensors that alarm when an abnormal condition arises
• Monitoring:
• Typically, each battery energy storage system is equipped with a battery management system, which can automatically shut down an affected unit
• Engaging first responders:
• NextEra works with and trains local first responders and fire officials to coordinate any response, in the unlikely event of a fire.
36 Yellow Pine 3: Workforce Development and Community Benefits • The project will provide 80 construction jobs and 2 permanent jobs • The project will use union labor. NextEra’s primary engineering and procurement contractor will execute a project labor agreement for the project
• Benefits to local communities:
• NextEra provides sole sponsorship of developing solar curriculum and research at University of Nevada Las Vegas, including mentoring the annual senior design project focused on solar energy systems • NextEra hosts a Renewable Energy Training (RET) simulation lab at University of Nevada Las Vegas and College of Southern Nevada
• NextEra provides presentations at local high schools in Southern Nevada that highlight the benefits of renewable energy and growing career opportunities within the state
• NextEra established an internship program that leads to career opportunities at NextEra solar and storage sites. • NextEra has offered Clark County Public Schools to apply for our $50,000 STEM Classroom Makeover Grant • NextEra contributes back-to-school supplies in Clark County Public Schools • NextEra contributes to the Three Square Food Bank in Clark County 37 Yellow Pine 3: Staff Analysis
• The Yellow Pine 3 project will contribute to Community Power’s 100% renewable by 2035 target, providing over 100,000 MWh of renewable energy per year, in addition to energy management and capacity benefits from battery energy storage • With commercial operations commencing in 2027, and a resource adequacy guarantee in 2028, the Yellow Pine 3 project will contribute to Community Power’s compliance requirements for mid-term reliability
• Pricing is competitive with comparable product offerings received from Community Power’s recent RFOs
• NextEra is highly experienced developer, owner, operator, among the world’s largest renewable generators and battery energy storage developers, with over 28 GWs of renewables in operation and another 18 GWs in development Public
Comment
for Item
No. 14
39 Item No. 15
Recommendation:
Approve the four proposed amendments to long-term Resource Adequacy Agreements with EnerSmart’s subsidiaries, set up as LLCs for each project, for a total purchase of
10.5 MW of Resource Adequacy (EnerSmart El Cajon BESS LLC 3.0 MW, EnerSmart Imperial Beach BESS LLC 3.0 MW, EnerSmart Mesa Heights BESS LLC 3.0 MW, EnerSmart Chula Vista BESS LLC 1.5 MW), with the amendment to require use of local labor, when possible, and union labor on portions of the project for the contracts with EnerSmart El Cajon BESS LLC and EnerSmart Imperial Beach BESS LLC, and authorize the Chief Executive Officer to execute the agreements.
Presenter:
Kenny Key, Director of Power Contracts
Approve Amendments to Long-Term Resource Adequacy Agreements with EnerSmart
40 Background
• Amendments to agreements needed to ensure
Community Power meets local procurement targets
• Community Power has a goal of 600 MW of local
capacity by 2035
• EnerSmart has a portfolio of projects in San Diego County • Community Power’s Board approved the four original
agreements in Q2 and Q3 of 2023
• Since then, the projects have faced deliverability and network upgrade delays, potentially pushing the project commercial operations into the 2030s
• These amendments are required to keep the projects
viable and financeable
41 EnerSmart Resource Adequacy Agreements: Overview
• Total of 10.5 MW NQC from lithium-ion battery energy systems • Project locations and sizing:
El Cajon
3 MW
Mesa Heights
3 MW
Imperial Beach
3 MW
Chula Vista
1.5 MW
*Online
42 EnerSmart Resource Adequacy Agreements: Key Terms
• Product: Local Resource Adequacy, 10.5 MW NQC in total • Pricing: Fixed pricing for resource adequacy which adjusts based on the year deliverability is obtained
• Guaranteed Initial Resource Adequacy Delivery Dates: Projects range between March 1, 2026, and Q4 2027
• Resource Adequacy would help with Community Power’s internal local procurement targets as well as external resource adequacy and mid-term reliability compliance requirements
• Community Power receives financial compensation for failure to meet certain performance requirements
43 EnerSmart Resource Adequacy Agreements: Amendment Overview • Amendments adjust term of Agreement from 10 years to 15 years for three of the four projects
• Amendments allow for interim deliverability status and provide Community Power with pricing protection depending on year deliverability is received • Amendments include addition of Slice of Day resource adequacy language and protections, pursuant to CPUC’s new requirements
• Amendments are required to keep the projects viable, allow for project financing, and will allow EnerSmart to continue to apply for local deliverability 44 EnerSmart Resource Adequacy Agreements: Workforce Development and Community Benefits
• EnerSmart plans to use local labor when possible and union labor on portions of the projects • Commitments to union-employed electrical contractors with a C-10 license for electrical work on the Imperial Beach and El Cajon projects
• Commitment on projects that are not yet in construction phase to use 80% local or union labor • EnerSmart commits to prevailing wages for all projects • Energy storage systems projects benefit the community by providing clean energy to the grid when it is needed the most, helping tor educe the local risk of brownouts and blackouts • Energy storage systems projects provide local storage which reduced the need for additional transmission to import necessary energy
45 EnerSmart Resource Adequacy Agreements: Battery Technology • EnerSmart abides by all state and local requirements for BESS projects, and provides full Hazard Mitigation Analysis Reports, along with Emergency Response Plans for each project • These reports are coordinated closely with the local fire department and obtain approval from the Fire Authority prior to installation
• All battery systems underwent UL 9540A testing, confirming no external flaming or explosions occurred during thermal runaway scenarios
• All battery systems contain integrated fire detection and suppression systems (smoke, heat, and gas detectors) which are standard and tested to activate during events • After installation, training is provided by the manufacturer to the local fire department 46 EnerSmart: Staff Analysis
• The EnerSmart projects will contribute to Community Power’s local capacity goals • Pricing is competitive with comparable product offerings received from Community Power’s recent RFOs
• Supports local projects and infill development
Public
Comment
for Item
No. 15
48 Item No. 16
Recommendation:
Approve Energy Consulting Services Agreement with Pacific Energy Advisors, Inc. for up to $775,000 for Energy Consulting Services through March 31, 2029, and subject to autorenewal at the same monthly rate with 3% annual increases until terminated and authorize the Chief Executive Officer to execute the Agreement in substantially the form attached hereto, with such changes as are approved by the Chief Executive Officer and reviewed and approved as to form by the General Counsel.
Presenter:
Byron Vosburg, Chief Commercial Officer
Approve Energy Consulting Services Agreement with Pacific Energy Advisors, Inc. up to $775,000 for Energy Consulting Services through March 31, 2029 49 Pacific Energy Advisors (PEA): Background
• Key consultant and contributor to Community Power success since 2020 • Have provided the following consulting services:
• Project planning
• Portfolio management
• Energy Trade and Risk Management (ETRM) platform
• Renewable energy and Resource Adequacy procurement
• Rate-making
• Load forecasting
• Regulatory compliance
• Financial modeling
• In 2023, Community Power and PEA revised the scope of services to reflect Community Power staffing and in-housing at the time.
• Given another two years of growth and evolution, it’s time to revisit again 50 Pacific Energy Advisors (PEA): Discussion
• Community Power expects PEA to remain a long-term partner but for the scope of services to reduce over time.
• The draft Energy Consulting Services Agreement allows for transition • PEA to provide parallel operations of the following during April through Sept 2025:
• Energy Trade and Risk Management (ETRM)
• Financial Modeling
• Long-term Load Forecasting
• Resource Adequacy procurement and compliance support
• After Sept 2025, PEA will continue to provide through March 2027:
• Specialized compliance support
• Trusted advisor services
51 Pacific Energy Advisors (PEA): Discussion
• Sept 2025 step-down in services allows for:
• Transition from PEA to in-house staff and new ETRM service provider • Significant reduction in Community Power fees to PEA
• To ensure continuous business operations, staff have negotiated an optional 3-month extension of critical services to protect against unlikely event of delays in replacement staffing and services
• Note: Do-not-exceed value includes potential exercise of this 3-month option and two potential annual renewals (through March 31, 2029)
Public
Comment
for Item
No. 16
Report by
Chief
Executive
Officer
54 Report by Chief Executive Officer
Updates
• Successful Festival of Science and
Engineering on March 1
• Regional Collaborative presentations in
o Chula Vista on March 11
o National City on March 12
o Imperial Beach on March 21
• Power100 Champion spotlight: Helix
Charter High School
Helix Charter High School Student Office of Sustainability 55 Report by Chief Executive Officer
Updates
• Record 55 applications submitted to
Community Clean Energy Grants
• CEO Presentation to National City Council
on March 4
• “Women in Power” panel discussion at
North San Diego Business Chamber’s
annual Women’s Week conference
Women's Week panel discussion: "Women in Power"
Directors'
Comments
Adjournment
Next Regular
Board of Directors Meeting
April 24, 2025