MEETING MINUTES
BOARD OF DIRECTORS MEETING
THURSDAY, APRIL 6, 2023
9:00 A.M.
___________________________________________________________
CALL TO ORDER
(9:04 a.m. - Video Time Stamp: 00:02:54)
Chair Fudge called the meeting to order.
Board Members present: Chair Fudge, Vice Chair Hopkins, and Directors Bagby, Ford, Barnacle, Elward, Rogers, Zollman, Farrar-Rivas, Strong, and Gjerde.
Staff present: Geof Syphers, Chief Executive Officer; Michael Koszalka, Chief Operating Officer; Stephanie Reynolds, Director of Internal Operations; Neal Reardon, Director of Regulatory Affairs; Erica Torgerson, Director of Customer Service; Brytann Busick, Events Manager; Chris Golik, Finance Manager; and Josh Nelson, Special Counsel.
0. Receive Notice that Director Farrar-Rivas is Participating from a Remote Location for Just Cause
Director Farrar-Rivas noticed she was unable to attend in-person due to illness and she would be participating in the meeting via teleconference pursuant to AB 2449 teleconference rules.
BOARD OF DIRECTORS CONSENT CALENDAR
(9:05 a.m. - Video Time Stamp: 00:04:14)
1. Approve March 2, 2023, Draft Board of Directors Meeting Minutes
2. Receive Geothermal Opportunity Zone Update
3. Approve and Delegate Authority to the Chief Executive Officer or Designee to Execute Two Professional Services Agreements with Hiner & Partners, Inc.
With a Collective Amount Not-To-Exceed of $167,000 for Two Separate Research Efforts, the Customer Operations Satisfaction Survey and the Annual Brand Awareness Survey
4. Approve and Delegate Authority to the Chief Executive Officer or Designee to Execute an Amendment to the Contract with Keyes & Fox LLP for an Amount Not-to-Exceed $200,000 through June 30, 2023, for Procurement and Regulatory Affairs Purposes
5. Approve Revised Sonoma Clean Power Authority Energy Risk Management Policy
Motion to approve the April 6, 2023, Board of Directors Consent Calendar by Director Bagby
Second: Chair Elward
AYES: Bagby, Ford, Barnacle, Elward, Rogers, Zollman, Farrar-Rivas, Strong, Fudge, Gjerde, Hopkins
BOARD OF DIRECTORS REGULAR CALENDAR
6. Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate
(9:08 a.m. - Video Time Stamp: 00:07:25)
Geof Syphers, CEO, discussed two new power purchase agreements for projects located in the SCP service territory, the first being 4 MWs of solar with 4 MWhs of battery storage just outside of Ukiah and the second being a 4.99 MW solar project in Laytonville.
Brytann Busick, SCP’s Events Manager, discussed Calpine’s Community Grant Program. Ms. Busick stated the application is on SCP’s website and encouraged the Board to help spread awareness of the program.
Director Barnacle asked how “disadvantaged communities” was defined for the program and Director Reynolds responded that SCP would provide that information after the meeting.
Director Reynolds discussed SCP customer protections for disconnections relating to the COVID-19 emergency that ended March 31, 2023.
Chair Fudge asked if a customer is disconnected but still owes money will SCP receive those funds and Erica Torgerson, Director of Customer Service, clarified SCP’s noticing and transfer process.
Public Comment: None
7. Receive Legislative and Regulatory Updates, Provide Direction and Approve Positions on AB 643 (Berman) Electricity Interconnection Timelines, AB 1538 (Muratsuchi) Clean Energy Reliability, SB 410 (Becker) Powering Up Californians Act and Other Bills as Appropriate
(09:21 a.m. - Video Time Stamp: 00:20:33)
Neal Reardon, Director of Regulatory Affairs, mentioned that the California Public Utilities Commission (CPUC) opened an Order Instituting Investigation regarding natural gas pricing. He then discussed the status of PG&E’s Fast-Trip program to automatically shutoff power, and how SCP is trying to get more information from PG&E about where that system is used. He stated that SCP has requested PG&E supply customer area maps for those areas affected by Fast-Trips and that the Chair of the CPUC told PG&E to provide the data to SCP.
Director Rogers mentioned that the National League of Cities had discussed PG&E’s lack of transparency.
SCP’s legislative advocate Katherine Brandenburg gave a high-level overview of the bills that SCP supports. She stated that this has been a busy year for the legislature with over 2,800 bills introduced. She stated that several were being watched including bills on offshore wind, lithium batteries, and open meeting legislation, among other items.
CEO Syphers expressed support for AB 643 (Berman) which is an interconnection bill. He mentioned Gov. Newsom’s budget includes a lot of policy elements and he stated that SCP requested the Governor’s office investigate PG&E’s financial status, since he noted the utility appears unable to finance routine transmission and distribution projects. He discussed AB 538 (Holden) which proposes regionalization of California Independent System Operator (CAISO) and he recommended that SCP watch the bill. He also recommends SCP watch AB 914 (Freeman) which aims to streamline CEQA procedures. He recommended support if amended for AB 1538 (Muratsuchi) which would provide incentives for clean energy reliability projects, but the language needed to be changed from “zero carbon” to “renewable,” the author agreed, but the funding source for the bill has yet to be addressed. He stated SCP supports SB 410 (Becker) which would provide timelines for utilities to connect new projects.
Vice Chair Hopkins asked for an update on SB 411 and Ms. Brandenburg stated that it has not yet been scheduled for a hearing. Director Bagby mentioned that the League of California Cities was going to host a Legislation Day and asked staff for talking points. Director Barnacle discussed SB 527 and AB 593 and asked for support. CEO Syphers mentioned that the Board could take a stance on these bills in a motion.
Public Comment: Helen Sizemore of the Environmental Caucus stated she believed AB 538 was dangerous since there would be an inability for California to exit the framework once it has joined.
Motion to Receive Legislative and Regulatory Updates, Provide Direction and Approve Positions on AB 643 (Berman) Electricity Interconnection Timelines, AB 1538 (Muratsuchi) Clean Energy Reliability, SB 410 (Becker) Powering Up Californians Act with Direction to CEO Syphers to Research and Consider Supporting AB 527 and AB 593 by Director Rogers.
Second: Director Barnacle
AYES: Bagby, Ford, Barnacle, Elward, Rogers, Zollman, Farrar-Rivas, Strong, Fudge, Gjerde, Hopkins
8. Review and Provide Direction on the Draft Annual Budget for Fiscal Year 2023-2024
(10:15 a.m. - Video Time Stamp: 01:14:28)
Michael Koszalka, COO, discussed the Draft Annual Budget for FY 23/24 and stated it would be brought to the Community Advisory again before bringing it to the Board for final adoption. He mentioned there are no projected rate increases and that SCP should be reaching its fiscal reserve targets within FY 23/24. He stated that there was a 4.7% budget increase and pointed out that this is below inflation levels. He discussed the 5-year forecast and CEO Syphers stated that in 2014, he projected that SCP would hit its long-term financial goals in 10 years but now are planning to meet goals ahead of schedule, in 9 and a half years.
Chair Fudge asked if the savings would be the same for EverGreen Customers and CEO Syphers answered they would. Director Gjerde stated it was great that SCP will have 9 months of operating expenses. Director Barnacle mentioned he would like to help mobile home parks with energy savings in the future. Director Zollman said he would like to see spending at all levels, especially for the underserved communities.
Public Comment: None
BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
(10:43 a.m. - Video Time Stamp: 01:42:43)
Director Ford mentioned that the City of Cotati now had 4 electric cars in its police force. Director Strong mentioned that the City of Willits was applying for solar installations by the April 14, 2023, deadline. Chair Fudge mentioned that Windsor was again considering adding EverGreen in their budget.
PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
(10:46 a.m. - Video Time Stamp: 01:44:58)
Public Comment: Sunny Galbraith (see attached public comment)
ADJOURN
(10:50 a.m. - Video Time Stamp: 01:49:46)
The meeting was adjourned by unanimous consent.
Respectfully Submitted,
Darin A. Bartow, JD
Clerk of the Board