DRAFT MEETING MINUTES
BOARD OF DIRECTORS MEETING
THURSDAY, DECEMBER 5, 2024
9:00 A.M.
___________________________________________________________
CALL TO ORDER
(9:04 a.m. - Video Time Stamp: 00:03:00)
Chair Hopkins called the meeting to order.
Board Members present: Chair Hopkins and Vice Chair Barnacle, Directors Lands, Elward, Zollman, Farrar-Rivas, Strong, and Alternate Director Fleming. Director Lemus, Fudge and Gjerde were absent with prior notice.
Staff present: Geof Syphers, Chief Executive Officer; Michael Koszalka, Chief Operating Officer; Garth Salisbury, Chief Financial Officer; Neal Reardon, Director of Regulatory Affairs; Chris Golik, Revenue Manager; Felicia Smith, Director of Programs; and Josh Nelson, Special Counsel.
Geof Syphers, CEO, thanked Director Strong for her service to SCP and Director Strong thanked SCP. CEO Syphers then thanked Director Rogers for his service and Director Rogers thanked SCP for all it has done for the community.
BOARD OF DIRECTORS CONSENT CALENDAR
(9:17 a.m. - Video Time Stamp: 00:16:25)
1. Approve November 7, 2024, Draft Board of Directors Meeting Minutes
2. Approve Resolution 2024-06 Adopting an Amended Conflict-of-Interest Code Pursuant to the Political Reform Act of 1974
3. Approve Revisions to the Net Billing Tarriff
4. Receive Geothermal Opportunity Zone Update
5. Approve and Delegate Authority to the Chief Executive Officer or His Designee to Execute a Legal Services Agreement with Best Best & Krieger LLP in the Amount Not-To-Exceed of $275,000 through December 31, 2027
6. Approve Proposed Scope of Work and Terms and Conditions, and Delegate Authority to the Chief Executive Officer to Negotiate Minor Revisions and Execute Contract with the California Energy Commission for Virtual Power Plant Approaches for Flexibility Grant Committing $1,091,000 in Sonoma Clean Power Match Funds Over Four Years
7. Approve and Delegate Authority to the Chief Executive Officer or His Designee to Execute an Agreement for Lobbying Services with the Brandenburg Group in the Amount Not-To-Exceed of $108,000 through December 31, 2025 Public Comment: None
Motion to approve the November 7, 2024, Board of Directors Consent Calendar by Director Lands
Second: Vice Chair Barnacle
Motion passed by roll call vote.
AYES: Lands, Barnacle, Elward, Flemming, Zollman, Farrar-Rivas, Strong, Hopkins
ABSENT: Lemus, Fudge, Gjerde
ABSTAIN: Hopkins on Item 1
BOARD OF DIRECTORS REGULAR CALENDAR
8. Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate
(9:19 a.m. - Video Time Stamp: 00:18:46)
Michael Koszalka, COO, introduced Garth Salisbury, CFO, who gave a presentation on pre-pay transactions.
Vice Chair Barnacle asked how the information regarding pre-pay transactions was getting out to the local community and Geof Syphers, CEO, stated that SCP was sending out a press release and would be further discussing it in item
11. Members Farrar-Rivas and Elward expressed gratitude for this accomplishment.
Public Comment: None
9. Receive Legislative and Regulatory Updates, Approve Legislative Positions, and Provide Direction as Appropriate
(9:28 a.m. - Video Time Stamp: 00:27:23)
Neal Reardon, Director of Regulatory Affairs, discussed that the CPUC concluded their multi-property microgrid tariffs proceedings and explained that it was determined that no costs could be avoided. Director Reardon then discussed the CPUC judge ruling that PG&E’s proposal to reduce financial credits for CCA Customers was out of scope. CEO Syphers added that this would cost customers an additional $120 million a year. Neal concluded with a brief legislative update and encouraged the Board to think of ideas for the next legislative session.
Public Comment: None
There were no legislative positions taken; therefore, no vote was necessary.
10.Accept the Independent Report for the Financial Statements from Fiscal Years Ending June 30, 2023, and June 30, 2024
(9:36 a.m. - Video Time Stamp: 00:35:47)
Kellin Gilbert of Pisenti & Brinker gave a presentation on the independent audit of SCP’s financial statements from fiscal years ending June 30, 2023, and June 30, 2024.
Public Comment: None
Motion to accept the Independent Report for the Financial Statements from Fiscal Years Ending June 30, 2023, and June 30, 2024, by Vice Chair Barnacle Second: Director Farrar-Rivas
Motion passed by roll call vote.
AYES: Lands, Barnacle, Elward, Flemming, Zollman, Farrar-Rivas, Strong, Hopkins
ABSENT: Lemus, Fudge, Gjerde
9:45 a.m. Alternate Director Flemming exited the meeting.
11.Approve the Parameters for Customer Rate Reductions Following Changes to Distribution Utility Rates and Fees on or After January 1, 2025, and Amendments to Financial Policy B.2
(9:46 a.m. - Video Time Stamp: 00:45:32)
Chris Golik, Revenue Manager, discussed the three requests that made up this item. First, he discussed how investments are defined by SCP and a change to the reserve target to assess risk. Secondly, he discussed SCP’s rate setting for January 1, 2025. Third, he discussed SCP’s local investment fund, and he gave the Board two recommendations on this topic, one option from the Community Advisory Committee (Committee) and the other option was a recommendation from SCP staff.
Chair Hopkins asked if the Board could split the difference between the two options and CEO Syphers answered that it could be done. Director Zollman stated that he respected the CAC decision, but he would like to split the difference. Director Lands asked where the recommended reserve amount came from, and CEO Syphers explained that SCP followed industry-wide practices to come up with the recommendation. Vice Chair Barnacle explained that cash in an account that SCP was not using doesn’t look good and asked what the Committee’s thinking behind that was. CEO Syphers explained that the thinking was, if you can’t add to it in a good year when can you add to a fund. Director Farrar-Rivas expressed appreciation with the Committee’s request to put $10 million in the fund. Director Lands stated that customers don’t want to see projects when their bills are high. Vice Chair Barnacle encouraged investment in local projects and Chair Hopkins agreed saying that no one knows what the future will hold. Directors Strong and Elward agreed that they wanted to see a split in the options.
Public Comment: Bob Anderson recommended the Board accept the recommendations from the Committee. The comment is attached.
Motion Approve the parameters for customer rate reductions following changes to distribution utility rates and fees on or after January 1, 2025, and Amendments to Financial Policy B. and on the 3rd point of the item to make an allocation of 2% of revenues to SCP’s Local Investment Fund in 2025, by Vice Chair Barnacle
Second: Director Zollman
Motion passed by roll call vote.
AYES: Lands, Barnacle, Elward, Zollman, Farrar-Rivas, Strong, Hopkins ABSENT: Lemus, Fudge, Gjerde, Flemming
12.Review Strategic Action Plan and Provide Direction as Appropriate (10:04 a.m. - Video Time Stamp: 01:03:08)
Felicia Smith, Director of Programs, gave a presentation regarding SCP’s Strategic Action Plan (Plan).
Director Zollman asked for a summary of the Committee’s review of the Plan, and Director Smith said that the Committee was supportive but there were questions around housing and energy billing. CEO Syphers added that the Committee’s Vice Chair Lipp said the Plan was very comprehensive. Director Zollman requested detailed input from the Committee going forward. Vice Chair Barnacle appreciated the work with GridSavvy and asked where the energy came from. Director Smith said that most of the energy comes from residential and EV customers. Vice Chair Barnacle stated that this was an opportunity to engage the local workforce and Director Smith added that SCP’s contractor network was a foundation to start with. Chair Hopkins stated that this was an opportunity to share SCP’s successes with other CCAs.
Director Zollman asked where he could send his constituency who have questions and Director Elward added there needs to be an education portion on the website. CEO Syphers agreed that more communication needs to be made. Director Strong said she would like to see consulting done with commercial customers. Chair Hopkins encouraged the Board to get the information out to their constituencies and Director Farrar-Rivas said she would like to see an Earth Day education event.
Public Comment: None
13.Adopt a Resolution 2024-07 Calling for a Credible and Definitive Plan to Close the Diablo Canyon Nuclear Power Plant by 2030
(10:34 a.m. - Video Time Stamp: 01:33:33)
CEO Syphers explained that this resolution was drafted in response to the Board’s request to call for a plan for the closing of the Diablo Canyon Nuclear Power Plant.
Chair Hopkins stated that she felt strongly that this Resolution was needed to show the Board’s frustration. Director Elward stated that California should not wait to shut the plant down due to the danger to customers.
Public Comment: None
Motion Adopt a Resolution 2024-07 calling for a credible and definitive plan to close the Diablo Canyon Nuclear Power Plant by 2030, by Director Farrar-Rivas Second: Director Elward
Motion passed by roll call vote.
AYES: Lands, Barnacle, Elward, Zollman, Farrar-Rivas, Strong, Hopkins ABSENT: Lemus, Fudge, Gjerde, Flemming
14.Receive Presentation and Provide Input on a Draft Policy on Selecting Energy Projects
(10:41 a.m. - Video Time Stamp: 01:40:24)
CEO Syphers thanked organized labor for all their input in drafting this policy and he mentioned that through discussions several CCAs have adopted different policies, and some do not have a policy but point to the already high criteria of the State of California.
10:50 a.m. the meeting was recessed due to an earthquake emergency. 10:57 a.m. the meeting was reconvened.
Item 14 was continued to the February 6, 2025, Board of Directors meeting.
ADJOURN
(10:58 a.m. - Video Time Stamp: 01:57:34)
The meeting was adjourned by unanimous consent due to the emergency caused by the Humboldt County Earthquake.
Respectfully Submitted,
Darin A. Bartow, JD
Clerk of the Board
December 3, 2024
Chair Hopkins and Honorable Directors
Sonoma Clean Power
431 E Street Santa Rosa,
CA 95404
RE Item 11 - Approve the Parameters for Customer Rate Reductions:
I support the CAC’s recommendation.
• On a 5-0-4 vote, the Committee recommended an alternate proposal to allocate 4% of Revenues in 2025 to SCP’s local investment fund. (Page 61 of 79) I attended the CAC’s meeting and can report theirs was a full and thorough discussion.
Staff made known their recommendation. Members had an opportunity to ask questions. The motion was clear, first acting on Items 1 & 2 then taking a separate vote on the third.
As a veteran of several citizen advisory boards, I’ve experienced many times where it is clear which is the easy and which is the hard path to take. Here the majority did it well.
The CAC members spoke with their votes, little was said favoring this or that next steps.
For me the focus is to make community-wide investments which will result in lower monthly utility bills.
As the Board considers its choice, I offer these excerpts from Item 12 – Strategic Plan:
1.1 Agency Mission
• turn the tide on the climate crisis through bold ideas and practical programs • provides incentives so customers can reduce their utility bills
2.1 Strategic Action
• set generation rates that stabilize bills and… help customers manage their bills
2.3 Design Objectives
• Need for both market transformation initiatives and avoided cost initiatives
6.1.6 ‘Duck Curve’ Challenge
• 6 Sonoma County schools participated…resulting in 33 submitted solutions https://sonomacleanpower.app.box.com/s/jyv06uuq1nfq60sj4hm7ml01151ucmfc