Item 3
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 3
TO: Board of Directors
FROM: Alisa Lembke, Board Clerk / Administrative Analyst SUBJECT: Approval of Minutes from June 13, 2024 meeting DATE: July 11, 2024
RECOMMENDATION
Receive, review and approve the attached June 13, 2024 meeting Minutes.
Attachment: June 13, 2024 meeting Minutes
VCEA Minutes June 13, 2024 Board Meeting Page 1 of 3
MINUTES OF THE VALLEY CLEAN ENERGY ALLIANCE
BOARD OF DIRECTORS MEETING
THURSDAY, JUNE 13, 2024
The Board of Directors of the Valley Clean Energy Alliance duly noticed their regular meeting for Thursday, June 13, 2024 at 5:30 p.m. to be held at City of Davis Community Chambers located at 23 Russell Boulevard, Davis, California 95616. VCE Vice Chair Bapu Vaitla established that there was a quorum present and began the meeting at 5:34 p.m.
Board Members Present: Bapu Vaitla, Jim Provenza, Tania Garcia-Cadena, Richard Casavecchia, Will Arnold
Members Absent: Lucas Frerichs, Tom Stallard, Jesse Loren Welcome and
Approval of the
Agenda
Vice Chair Vaitla welcomed the Board members. Director Arnold made a motion to approve the Agenda, seconded by Director Garcia-Cadena.
Motion passed with Frerichs, Stallard and Loren absent.
Public Comment –
General and
Consent
Vice Chair Vaitla asked if any Board Members wished to move items off the Consent Agenda to the Regular Agenda for further discussion. There were no written or verbal public comments. The Board Clerk informed those present that the May 9, 2024 meeting Minutes have been corrected to indicate the correct vote on Item 12 – Approve VCE’s Load Management Standards (LMS) Plan.
Approval of Consent
Agenda /
Resolutions 2024-
007
Motion made by Director Arnold to approve the consent agenda items, seconded by Director Provenza. Motion passed with Frerichs, Stallard, and Loren absent. The following items were:
4. approved May 9, 2024 Board meeting Minutes as amended;
5. received 2024 long range calendar;
6. received financial update April 30, 2024 (unaudited) financial statement;
7. received May 2024 regulatory update dated June 5, 2024 provided by Keyes & Fox;
8. received final 2023 financial Audit report;
9. supported Administration’s proposed budget trailer bill language to raise statutory cap on the Energy Resources Program Account (ERPA);
10. approved Third (3rd) Amendment of the renewable power purchase agreement with Leeward Renewable Energy to address changes in the commercial operation date of the Willy 9 Chap 2 facility as Resolution 2024-007; and,
VCEA Minutes June 13, 2024 Board Meeting Page 2 of 3
11. reappointed Lorenzo Kristov, Keith Taylor and Danielle Ballard to the three (3) At-Large seats for a three (3) year term to expire in June 2027 (Class 3); appointed Ari Halberstadt to the vacant City of Davis jurisdiction seat for two (2) years to expire in June 2026 (Class 2); and, directed staff to continue to solicit candidates for vacant unincorporated Yolo County jurisdiction seat until filled.
VCE Executive Officer congratulated the reappointment/appointments of applicants to the Community Advisory Committee (CAC).
Item 12: Receive
legislative update
and presentation by
Pacific Policy Group.
(Information)
VCE Executive Officer Mitch Sears introduced this item and introduced Mark Fenstermaker of Pacific Policy Group. Mr. Fenstermaker reviewed legislative dates and deadlines, significant energy legislation over the past few years, budget problems impacting bill decisions, legislative bills being discussed, and California Public Utilities Commission’s (CPUC) decisions on Net Energy Metering (NEM) and Income-Graduated Fixed Charges (IGFC).
He briefly reviewed the budget deficit, projected budget deficit for fiscal year 2025-26, reduced and deferred energy, and future opportunities.
The Board briefly discussed how program monies are distributed.
There were no verbal or written public comments.
Item 13: Receive
VCE Power Purchase
Agreement
prepayment
presentation by
PFM Financial
Advisors.
(Information)
VCE Staff Edward Burnham introduced Michael Berwanger of PFM Financial Advisors, VCE’s consultant. Mr. Berwanger provided an overview of energy prepayment, background, the goals and how it works, including the prepayment structure, how savings are generated, and presented a risk analysis.
VCE Staff reiterated that this prepayment opportunity is not an investment credit rating requirement; that VCE will be issuing a Request for Proposals (RFP); and, Staff will be bringing options to the Board, possibly as soon as July.
There were no verbal or written public comments.
Item 14: Receive
Mid-Year 2024
financial update.
(Information)
Mr. Sears introduced this item. Mr. Burham provided a Mid-Year 2024 financial update. He reviewed the 2024 rates and budget background, long term outlook, and retail load forecast versus actual with 50% of load forecast is during peak season (May through September). Mr. Burnham continued to review the 2024/25 outlook, factors impacting forward power and Resource Adequacy (RA) costs, and the effects of PG&E 2025 PCIA and VCEA Minutes June 13, 2024 Board Meeting Page 3 of 3
rates proceedings. He reviewed 2025 Slice of Day (SOD) compliance outlook and other considerations, and mitigation strategies to reduce costs. Lastly, he reviewed next steps with Staff returning in September 2024 with possible power cost mitigation ideas and a financial forecast update.
Mr. Sears informed those present that VCE has been working with CalCCA on having Ex-parte meetings with CPUC Commissioner’s offices on Slice of Day and CCA’s inability to transact; and, asking to delay the compliance year, currently set for 2025.
The Board and Staff briefly discussed if there were any remedies for transactability and hour by hour versus “block” demand. There were no written public comments.
Verbal Public Comment: Christine Shewmaker reiterated VCE’s goals, emphasizing 100% renewable energy goal by 2030, impacts of Slice of Day to VCE’s portfolio, and the purchase of RECs impacts in the short term. She hopes that this will not deter VCE in reaching its long term goal of clean energy.
Item 15: Board
Member and Staff
Announcements
There were no Board Member announcements. Mr. Sears informed those present that the Celebrate Davis event held on Friday, May 17th was a success with many people visiting the VCE booth. VCE has an intern, Catherine Rowen, coming on board. She will be focusing on exploring virtual power plants. He and Board Member Will Arnold attended a day and a half energy efficiency conference, where Mr. Sears presented information on dynamic pricing. The conference covered a wide range of topics and focused on where energy efficiency and policies are headed.
Mr. Sears reminded those present that the Board’s July regular meeting will be held at the UC Davis – California Lighting Technology Center (CLTC) with a tour of the facility at 5 p.m. prior to the Board’s regular meeting.
Announcement /
Adjournment
The Board’s next regular meeting is scheduled for Thursday, July 11, 2024 at 6 p.m. with a tour of the facility starting at 5 p.m. to be held at the UC Davis – California Lighting Technology Center (CLTC) located at 633 Pena Drive, Davis, California 95618. There being no further business to discuss the meeting was adjourned at 6:43 p.m.
Alisa M. Lembke
VCEA Board Secretary