MEETING MINUTES
BOARD OF DIRECTORS MEETING
THURSDAY, JUNE 6, 2024
9:00 A.M.
___________________________________________________________
CALL TO ORDER
(9:01 a.m. - Video Time Stamp: 00:02:18)
Chair Hopkins called the meeting to order.
Board Members present: Chair Hopkins, Directors Lemus, Farrar-Rivas, Strong, Fudge, Gjerde, and Alternate Director Mauer. Vice Chair Barnacle and Directors Lands, Elward, and Rogers were absent with prior notice.
Staff present: Geof Syphers, Chief Executive Officer; Michael Koszalka, Chief Operating Officer; Stephanie Reynolds, Director of Internal Operations; Neal Reardon, Director of Regulatory Affairs; Kimberly Beltran, Technical Programs Manager; Brant Arthur, Programs Manager; and Miles Horton, Legislative Policy and Community Engagement Manager.
BOARD OF DIRECTORS CONSENT CALENDAR
(9:06 a.m. - Video Time Stamp: 00:07:42)
1. Approve May 2, 2024, Draft Board of Directors Meeting Minutes
2. Approve and Delegate Authority to the Chief Executive Officer or Designee to Execute a Professional Services Agreement with ReconMR, LLC with an Amount Not-to-Exceed $926,046 for a Three-Year Research Contract
3. Approve and Delegate Authority to the Chief Executive Officer or Designee to Execute a Professional Services Agreement with Studio PR LLC with an Amount Not-to-Exceed $350,000 for a Three-Year Public Relations Contract
4. Approve and Delegate Authority to the CEO or Designee to Execute a First Amendment to the Agreement for Professional Services with Maher Accountancy to add $292,800 for an Amount Not-to-Exceed $742,800, through June 30, 2025
Public Comment: None
Motion to approve the June 6, 2024, Board of Directors Consent Calendar by Director Fudge
Second: Director Farrar-Rivas
AYES: Lemus, Farrar-Rivas, Strong, Fudge, Gjerde, Hopkins ABSENT: Lands, Barnacle, Elward, Rogers
ABSTAIN: Mauer
BOARD OF DIRECTORS REGULAR CALENDAR
5. Receive Nominations and Appoint Community Advisory Committee Members to Fill Vacancies
(9:07 a.m. - Video Time Stamp: 00:08:11)
Geof Syphers, CEO, explained that SCP had run a solicitation for membership on the Community Advisory Committee (Committee) in late 2023 and, at that time, the Board of Directors (Board) had created an Ad Hoc Committee to review applications and recommend appointments to the Board. Since then, due to resignations, the Committee membership had been reduced to eight members. CEO Syphers stated that the number of members was sufficient to follow the rules as stated in the Joint Powers Authority (JPA) that defines SCP but suggested adding to the number in the interests of diversity and public representation from our service territory. CEO Syphers then invited Director Farrar-Rivas, a member of the Ad Hoc Committee that reviewed applications, to introduce new candidates for appointment to the Committee. Director Farrar-Rivas recommended that Crispin Hollinshead and Michael Heffler be appointed to the Committee.
Public Comment: None
Motion to Nominate and Appoint Crispin Hollinshead and Michael Heffler to the Community Advisory Committee to Fill Vacancies by Director Farrar-Rivas Second: Director Strong
AYES: Lemus, Mauer, Farrar-Rivas, Strong, Fudge, Gjerde, Hopkins ABSENT: Lands, Barnacle, Elward, Rogers
6. Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate
(9:12 a.m. - Video Time Stamp: 00:13:27)
Stephanie Reynolds, Director of Internal Operations, invited Kimberly Beltran, Technical Programs Manager, to give an update on GridSavvy and electric vehicle (EV) charging. Ms. Beltran noted that SCP had incentivized over 5,000 EV chargers and that the program provided by SCP will be ending because PG&E has an EV charging program and SCP does not want to overlap programs. She emphasized the program team is always looking for ways to bring equity to SCP’s programs.
Alternate Director Mauer asked about non-profit electric vehicle incentives, and Ms. Beltran replied that non-profits may be able to obtain up to $22,500 from SCP to purchase an electric vehicle. Director Lemus inquired about EV charging network impacts due to Tesla layoffs, and Brant Arthur, Programs Manager, stated that even though that has been in the news, Tesla is continuing to install EV chargers. Director Fudge asked if there are any issues with GridSavvy when a heat pump water heater goes into disabled mode and Ms. Beltran answered that there may be, but SCP does not dispatch to heat pump water heaters for GridSavvy.
Director Reynolds then discussed SCP’s financials and noted that the June Committee meeting had been canceled. CEO Syphers reminded the Board about the upcoming rate adjustment and mentioned that SCP had purchased an electric truck. He then announced that SCP’s new Chief Financial Officer (CFO), Garth Salisbury, will be starting soon.
Public Comment: None
7. Receive Legislative and Regulatory Updates, Approve Legislative Positions, and Provide Direction as Appropriate
(9:31 a.m. - Video Time Stamp: 00:32:16)
Neal Reardon, Director of Regulatory Affairs, gave a regulatory update in which he discussed that the CPUC denied PG&E’s attempted equity sell-off and the income graduated fixed charge. Director Reardon then introduced Adam Jorge as SCP’s new Senior Risk Manager.
Alternate Director Mauer asked how SCP customer’s billing would be different with or without the income graduated fixed charge and Director Reardon explained less of the total bill would be based on electrical usage with a fixed charge. Alternate Director Mauer then asked how it would affect customers who opted out of smart meters and CEO Syphers responded that it wouldn’t be any different for those customers. Director Fudge asked if SCP should share messaging with the public regarding the graduated fixed charge because it benefits electrified homes and Director Reardon responded that while yes, it does, it does not benefit those customers much.
Miles Horton, Legislative Policy and Community Engagement Manager, gave a legislative update. Mr. Horton discussed AB 1359 (Papan) which relates to geothermal permitting, and he mentioned that SCP had sponsored it to facilitate local permitting of geothermal exploration wells, and was recommending approval. He then discussed SB 1298 (Cortese) which applies to data center electrification backup generators and SCP was recommending opposing the bill.
Director Fudge asked if SB 1298 would apply to all generators and Mr. Horton replied that it would. Director Gjerde asked how the income graduated fixed charge would affect customers with low usage and Director Reardon answered that those customers would see the largest bill increases.
Public Comment: None
Motion to Approve Sonoma Clean Power Authority’s Legislative Positions by Director Farrar-Rivas
Second: Director Lemus
AYES: Lemus, Mauer, Farrar-Rivas, Strong, Fudge, Gjerde, Hopkins ABSENT: Lands, Barnacle, Elward, Rogers
8. Receive Mobility & Transportation Community Needs Assessment Final Report (9:59 a.m. - Video Time Stamp: 00:59:05)
Brant Arthur, Programs Manager, gave a presentation on the mobility and transportation needs assessment conducted by EVNoire on behalf of SCP.
Director Lemus recommended that SCP should consider a traveling roadshow to events in the Latino communities to raise awareness. Director Gjerde asked if SCP could provide this presentation to Mendocino County’s Transportation Board and Transportation Agency and Director Fudge added that the presentation should also be shared with Sonoma Couty’s Public Works Department. Director Farrar-Rivas mentioned that Sonoma Couty’s Human Resources Department was doing a mobility assessment and encouraged SCP to coordinate with them as well and Chair Hopkins added that the Sonoma County Transportation Authority should be looped in, too.
Public Comment: None
9. Approve and Delegate Authority to the Chief Executive Officer or Designee to Finalize Terms and Execute Agreements with Princeton University for a Contract Total of $350,000 and First Principles Advisory LLC for a Contract Total of $75,000 for the Transmission Planning Under Uncertainty Project (10:22 a.m. - Video Time Stamp: 01:22:14)
Ryan Tracey, Director of Planning and Analytics, discussed interconnectedness and discussed how these contracts would explore the root causes of transmission planning problems and transmission planning under uncertainty.
CEO Syphers further explained that the planning process for transmission is currently based around minimizing the cost of transmission construction, but this would focus on minimizing total costs and lowering the uncertainty of achieving SCP’s and California’s climate goals.
Director Fudge stated that she was proud SCP was working on this because what is learned will benefit the state and she encouraged all absent Board members to view this item. Director Lemus asked if other CCAs would join the contract and expand the scope and Director Tracey answered that the scope was set. Director Strong asked if the results of the study are to increase transmission, is SCP the right agency to do this work, and Director Tracey answered that this is a tool that SCP can use when studying transmission and SCP plans to share it with the agencies that do the planning. Director Tracey added that SCP needs to take a leadership role in transmission planning in order to see change.
Public Comment: None
Motion to Approve and Delegate Authority to the Chief Executive Officer or Designee to Finalize Terms and Execute Agreements with Princeton University for a Contract Total of $350,000 and First Principles Advisory LLC for a Contract Total of $75,000 for the Transmission Planning Under Uncertainty Project by Director Fudge
Second: Director Farrar-Rivas
AYES: Lemus, Mauer, Farrar-Rivas, Strong, Fudge, Gjerde, Hopkins ABSENT: Lands, Barnacle, Elward, Rogers
10.Receive Geothermal Opportunity Zone Update
(10:43 a.m. - Video Time Stamp: 01:43:37)
CEO Syphers stated that if SCP can deploy geothermal faster, there is potential to close gas plants more quickly and lower energy costs. He discussed how the US Department of Energy has developed a plan to expand Enhanced Geothermal Systems (EGS) and developed new safer approaches for borrowing the know-how from the oil and gas industry’s hydraulic fracturing (aka ‘fracking’) techniques that protect groundwater and eliminate surface pollution from hydrocarbons. He then explained that SCP has therefore partnered with Chevron New Energies because they have the necessary experience with the EGS technology. CEO Syphers explained that this is SCP’s chance to scale geothermal and he announced that on July 25, 2024, SCP would be hosting a GeoZone Townhall at the Customer Center.
Director Fudge asked if the fracking for the project comes from the drilling and CEO Syphers explained that the fracking happens when the vertical wells are connected and the bottom. Chair Hopkins asked where this technology could be deployed, and CEO Syphers responded there is potential in a lot of the Western United States.
Public Comment: Ashley Arax discussed the Clean Air Task Force’s (CATF) support for EGS.
11.Receive and Provide Feedback on Funding Opportunity for GridSavvy Rewards (11:02 a.m. - Video Time Stamp: 02:02:49)
Rebecca Simonson, Director of Programs, described feedback that SCP had received on funding opportunities for GridSavvy Rewards and encouraged the Board to give SCP their feedback.
Director Lemus expressed the need for more education on GridSavvy Rewards in the Latino community. Director Mauer asked how GridSavvy Rewards work for people not on smart meters and Director Simonson explained that the only way to pull the data on usage is with a smart meter, so SCP cannot see the data to offer the incentives, but these customers can still receive the alerts and conserve energy even without the incentives.
Public Comment: None
BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
(11:25 a.m. - Video Time Stamp: 02:25:34)
Director Lemus announced that Cotati would be holding a Cotati’s Kid’s Day Parade and Festival. Director Fudge announced that Windsor was taking over some of Sonoma Water’s wastewater treatment. Chair Hopkins congratulated Director Rogers on the birth of his first child.
PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
(11:28 a.m. - Video Time Stamp: 02:28:36)
Public Comment: None
ADJOURN
(11:29 a.m. - Video Time Stamp: 02:29:45)
The meeting was adjourned in the name of Sonya Bartow by unanimous consent.
Respectfully Submitted,
Darin A. Bartow, JD
Clerk of the Board