Agenda packet — Coronado City Council, February 17, 2026 (part 2 of 2)

3. Timeline and Calendar
o What is the general timeline from Council action to enrollment of customers? o Are there specific annual enrollment windows tied to procurement cycles or CPUC requirements?
o If Coronado were to begin the process in early 2026, what would the earliest enrollment date likely be?

4. Solar Customer Considerations
o How does SDCP support customers with existing Net Energy Metering (NEM) agreements through SDG&E?
o Would Coronado’s solar customers retain their current NEM status and billing arrangements?
o Are there any differences in credits, rates, or True-Up timelines that we should be aware of, compared to SDG&E Nem 1.0, NEM 2.0 and NEM 3 .0/ Net Billing Tariff (NBT) Agreements?

5. Additional Guidance
o Are there sample staff reports, resolutions, or ordinance templates available for cities beginning this evaluation?
o Who would be our primary point of contact for technical, financial, and policy discussions moving forward?
The City of Coronado is committed to a careful and thorough review of CCA options, and we appreciate SDCP’s willingness to provide guidance at this early stage. Once we have more information, we anticipate further dialogue with your staff, as well as opportunities for public discussion and Council consideration.

Thank you in advance for your cooperation and assistance. Our goal is to report to the Council in early January. We look forward to learning more about the potential of partnering with San Diego Community Power.

Sincerely,
Carrie Downey
Carrie Downey Kelly Purvis
Mayor Pro Tem Council Member
CCA Subcommittee CCA Subcommittee
[email protected] [email protected]
(619) 507-3603 (619) 936-8337
Attachment 4
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February 17, 2026 City of Coronado Page 210
5857 Owens Ave, 3rd Floor | Carlsbad, CA | 760-209-6177 TheCleanEnergyAlliance.org
January 2, 2026
CCA Subcommittee
Carrie Downey, Mayor Pro Tem
Kelly Purvis, Councilmember
City of Coronado
RE: LETTER DATED NOVEMBER 24, 2025
Mayor Pro Temp Downey & Council Member Purvis,
Thank you for your interest in learning more about the process to become a member of Clean Energy Alliance (CEA). As you evaluate alternatives for exploring the City of Coronado’s clean-energy goals, enhancing local control, and reducing long-term energy costs for Coronado’s residents and businesses, we hope this information will be helpful.

CEA was formed in November 2019 for the primary purpose of meeting member agency Climate Action Plan (CAP) goals by reducing greenhouse gas emissions within our service territory through the procurement of clean energy, while offering rates competitive with San Diego Gas & Electric. CEA’s Board of Directors (Board) is comprised of one elected official from each of the member agencies, with each Board Member having an equal vote. The Board meets the last Thursday of each month at the Leucadia Wastewater Board Room (1960 La Costa Avenue, Carlsbad, CA 92009).

The Board has adopted a New Member Policy (Policy – Attachment A) that addresses and outlines the process for a city to join CEA and the requirements that must be met for CEA to consider approval of a city’s membership. Many of the questions posed in your letter are addressed in the Policy and our responses will refer you back to this Policy as appropriate.

The table below summarizes the steps required to join CEA and for CEA to initiate service within Coronado. The timeline and process for CCA service initiation have been established by the California Public Utilities Commission (CPUC) in Resolution No. E-4907 (Attachment B), approved by the CPUC on February 8, 2018. Based on this timeline, the earliest date that CEA could begin serving customers in Coronado is January 2028. While this is the earliest date, the actual date that CEA would begin service would be determined by CEA as part of the required Amendment to CEA’s Implementation Plan and would be based on financial considerations, impact to customers, and impact to CEA operations.

Attachment 5
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Steps to Join Clean Energy Alliance and CEA Service Initiation Q1 Q2 Q3 Q4
CY
2026
Coronado
Actions:

Authorize
SDG&E NonDisclosure
Agreement (NDA)
& Intent Forms
Notify CEA of
Interest and
Request Technical
Study
Payment to CEA
for technical
study costs
Request SDG&E
Load Data
CEA Actions:

Prepare Technical
Study
Evaluate Results
& share with
Coronado
Evaluate
financial and
operational
impacts of
Coronado joining
Coronado
Actions:

Adopt CCA
Ordinance and
Resolution
approving CEA
JPA execution
CEA Actions:

Adopt
Resolution
authorizing
Coronado joining
Prepare &
Approve
Implementation
Plan Amendment
CEA Actions:

File
Implementation
Plan Amendment
CY
2027
CPUC approval of
Implementation
Plan Amendment
CEA Actions:

Inclusion of
Coronado in YearAhead Resource
Adequacy Filing
CEA Actions:

Procurement for Energy needs
Coronado
Actions:

Selection of
default power
supply
CY
2028
CEA Actions:

Eligible to launch; Customer noticing; procurement activities; launch activities Attachment A Attachment 5
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February 17, 2026 City of Coronado Page 212
The following addresses the specific questions in the letter:

1. Membership Application Process
See above for a summary of the steps Coronado must take to initiate discussions with CEA regarding becoming a member agency. The Technical Study that CEA performs will analyze Coronado’s energy usage to determine the operational, cost and rate implications for CEA to serve Coronado residents and businesses.

Section 2.4.1 – 2.4.4 of CEA’s Joint Powers Authority (JPA) Agreement (Attachment C) establishes the requirements for a city to become a member of CEA, which includes:
• Adoption of a resolution by two-thirds vote of the entire CEA Board authorizing membership in CEA;
• Adoption of a CCA ordinance by the prospective member agency as required by Public Utilities Commission Section 366.2(c)(12) and approval and execution of the CEA JPA Agreement;
• Payment of any membership fee;
• Satisfaction of any other conditions established by the Board.

CEA will evaluate impacts of load, procurement requirements and resource adequacy needs to determine whether there are any challenges to accepting Coronado as part of the technical study.

2. Cost Structure and Financial Considerations
Per the New Member Policy, the new member is responsible for costs incurred by CEA in connection with adding the new agency. Examples of costs that may be incurred include:
• Preparation of the Technical Study
• Preparation of the Amended Implementation Plan and related activities of the expansion.

The costs are eligible for reimbursement to the new member agency within three years of CEA serving customers within the new member territory. The New Member Policy further states that CEA will consider using reserves to cover the new member agency costs, to the extent available, if the financial proforma in the technical study indicates sufficient revenue is generated within the new member territory to reimburse CEA for those costs within three years. For recent expansions, these costs have been less than $50,000.

Costs to operate CEA are fully the responsibility of CEA. Section 3.5 of the JPA establishes that the debts, liabilities and obligations are not the debts, liabilities or obligations of the Members, unless a Member agrees in writing to assume any debts Attachment 5
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liabilities or obligations of CEA. Section 7.6 of the JPA states that the Board shall endeavor to achieve a balanced distribution of program and project benefits substantially commensurate with each Member’s energy load.

3. Timeline and Calendar
See above table for information regarding timeline related to enrollment of customers.

4. Solar Customer Considerations
CEA enrolls all eligible customers, including customers served under SDG&E’s Net Energy Metering (NEM) programs. NEM customers retain their current NEM status and billing arrangements. Upon enrollment with CEA, NEM customers are served under CEA’s appropriate NEM program. Attached are the terms and conditions for CEA’s Personal Impact (Attachment D) and Solar Impact (Attachment E), which outlines program details under NEM 1.0 and NEM 2.0 (Personal Impact) and Net Billing Tariff (Solar Impact). CEA’s Net Surplus compensation ($0.06 per kWh) is typically higher, than what SDG&E pays. In addition, for those customers on Solar Billing Plan, CEA adds $0.01 per kWh for exported energy.

5. Additional Guidance
Sample staff reports, resolutions and/or ordinance templates can be provided as needed/requested. Rob Howard is the primary point of contact for Coronado moving forward.

CEA appreciates the opportunity to assist the City of Coronado as it evaluates options for achieving its clean energy goals.

Sincerely,
Greg Wade
Chief Executive Officer
Attachments
Attachment A – CEA Policy No. CEA-017New Member Policy
Attachment B – CPUC Resolution No. E-4907
Attachment C – Clean Energy Alliance Joint Powers Authority Agreement Attachment D – Personal Impact Terms and Conditions
Attachment E – Solar Impact Terms and Conditions
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CEA-017
New Member Addition Policy
Proposed May 27, 2021

NEW MEMBER ADDITION POLICY
Clean Energy Alliance (CEA) will consider the addition of any incorporated city or county within San Diego Gas & Electric territory if it meets the requirements as established in the following policy.

Authority
Section 2.4 of CEA’s Joint Powers Agreement (JPA) establishes the authority for CEA to add new agencies under the following conditions:

1. Adoption of a resolution by a two-thirds vote of the entire Board authorizing membership in CEA;

2. Adoption by the proposed member of a CCA ordinance, as required by Public Utilities Code Section 366.2(c)(12) and approval and execution of the CEA JPA and other necessary program agreements;

3. Payment of a membership fee, if any, as may be required by the Board to cover CEA costs incurred in connection with adding the new agency;

4. Satisfaction of any other conditions established by the Board.

Policy
CEA will consider membership of a city or county within SDG&E territory, pursuant to the conditions above, if:
• The analysis of the proposed member usage data results in a positive feasibility study using CEA’s financial pro forma model;
• The addition of the proposed member does not create an undue risk or financial burden to CEA;
• Does not create an undue risk to the achievement of the goals of CEA, including the achievement of the Climate Action Plan goals of the current Members.

Costs to New Members
Condition 3 above specifies that the proposed member may be required to cover CEA costs incurred in connection with adding the new agency. Examples of costs that may be incurred include:

Costs of adding new member:

Attachment 5
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New Member Addition Policy
Adopted May 27, 2021
2 • Cost of analysis of historical usage data using CEA’s financial pro forma model to determine impact to CEA of the proposed member; and
• Preparation of an Amended Implementation Plan and related activities of the expansion, as required by the California Public Utilities Commission.

The proposed member will be responsible to cover the CEA direct costs related to the addition of the proposed member and will be eligible for reimbursement of the costs paid by the proposed member within three years of CEA serving customers within the proposed member territory.

Costs of CCE implementation into new member territory:
• Direct costs related to the implementation of the CCE program in the proposed member territory, such as increased resource adequacy requirements and preparation and mailing of customer notices.

CEA will consider using reserves, to the extent available, or other financing sources for costs related to the implementation of CCE service in the new member territory, if the CEA pro forma reflects sufficient revenue is generated within the new member territory to reimburse CEA for those costs within three years.

The CEA Board may waive certain criteria or add additional requirements as it deems appropriate in considering the addition of a proposed member.

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Date of Issuance: February 9, 2018
210016662 1

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
ENERGY DIVISION RESOLUTION E-4907
February 8, 2018

R E S O L U T I O N
Resolution E-4907. Registration Process for Community Choice Aggregators.

PROPOSED OUTCOME:
 This resolution would publish and implement a registration process for Community Choice Aggregators.

SAFETY CONSIDERATIONS:
 There is no impact on safety.

ESTIMATED COST:
 Potential unquantifiable bundled ratepayer savings due to elimination of cost shifting of resource adequacy costs.

By the Commission’s own initiative.
__________________________________________________________

SUMMARY
The Commission through this Resolution proposes an informal process of review of Community Choice Aggregation (CCA) Implementation Plans pursuant to the requirements and directives of Public Utilities Code Section 366.21 and Decision (D.) 05-12-041. This process of review will coordinate with the timeline of the mandatory forecast filings of the Commission’s Resource Adequacy program to ensure that newly launched and expanding CCAs comply with Resource Adequacy requirements, as established by Section 380, before they serve customers.

This Resolution will require Community Choice Aggregators (CCAs) to submit to a process that includes a timeline for submission of Implementation Plans; a 1 All further references are to the Public Utilities Code unless otherwise specified.

Attachment B Attachment 5
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2 requirement to “meet and confer” between the CCA and the incumbent utility that can be triggered by either the CCA or the utility; a registration packet including a CCA’s service agreement and bond; and a Commission authorized date to begin service.

This resolution could delay the dates in which some CCAs serve customers but for a limited period of time in most circumstances no longer than one year and if a new or expanding CCA cannot comply with the new timelines the resolution creates a process where the CCA can still seek a waiver to serve customers within several months of approval of their implementation plans.

This Resolution, in part, is responsive to the directive of D.05-12-041 instructing the Executive Director to publish steps for the submission of Implementation Plans, and addresses the current rapid growth of CCA programs. The filing deadlines in this Resolution are intended to coordinate with the timeline for mandatory forecast filings in the Resource Adequacy program.

BACKGROUND
Overview of Community Choice Aggregation
In 2002 the State Legislature enacted Assembly Bill (AB) 117 (codified at Section 366.2), authorizing the creation of Community Choice Aggregators (CCAs). The Commission implemented the provisions of AB 117 in D.04-12-046, and D.05-12-041, among other Decisions.

D.05-12-041 directed the Executive Director to prepare and publish instructions for CCAs and utilities which would provide a forum for the CCA and the utility to understand the CCA’s implementation plans and to assure that the CCA is able to comply with utility tariffs. The instructions should include a timeline and descriptions of the procedures for submitting and certifying receipt of the Implementation Plan, notice to customers, and notice to CCAs of the appropriate Cost Responsibility Surcharge (CRS) and registration of CCAs.

After D.05-12-041, no CCA came into formation until 2010 with the launch of Marin Clean Energy. From 2010 to 2015, two CCAs launched serving approximately 135,000 customer accounts statewide. From 2016 to 2017, Attachment 5
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Resolution E-4907 / SC8 February 9, 2018
3 CCA formation accelerated and 12 more communities launched or submitted CCA Implementation Plans to the Commission. As a result of this rapid growth in CCAs, it is appropriate now to address the directives of D.05-12-041 to create and publish processes for CCA implementation and registration.

Overview of CCA Implementation Plan Requirements
Section 366.2 authorizes the aggregation of electric loads by CCAs and establishes the broad requirements for implementing a CCA program.

Section 366.2 grants the Commission authority over CCA implementation, and includes directives on the policy requirements of CCA programs, necessary implementation documents, timing requirements and deadlines for CCA implementation.

Section 366.2(c)(8) establishes the authority of the Commission to designate a CCA’s start date with consideration of the impact on the electrical corporation’s annual procurement:

2 Section 366.2(c)(8).

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4 treatment of all classes of customers, and fulfill requirements established by state law or by the commission concerning aggregated service.3 Section 366.2(c)(4) states:

A community choice aggregator establishing electrical load aggregation shall prepare a statement of intent with the implementation plan. Any community choice load aggregation established pursuant to this section shall provide for the following:
(A) Universal access.
(B) Reliability.
(C) Equitable treatment of all classes of customers.
(D) Any requirements established by state law or by the commission concerning aggregated service, including
those rules adopted by the commission pursuant to
paragraph (3) of subdivision (b) of Section 8341 for the application of the greenhouse gases emission performance standard to community choice aggregators.

Additionally, the implementation of a CCA program “shall not result in a shifting of costs between the customers of the community choice aggregator and the bundled service customers of an electrical corporation.”4 Implementation Documents and Requirements
Section 366.2 requires that CCAs submit an Implementation Plan and a Statement of Intent to the Commission and sets forth seven elements that Implementation Plans, and any subsequent changes to implementation plans, must contain.5
Section 394.25(e) also requires that “an electric

3 Section 366.2(c)(4).
4 Section 366.2(a)(4).
5 Section 366.2(c)(3) requires that Implementation Plans and any subsequent changes to implementation plans must be considered and adopted at a duly noticed public hearing and must contain all the following: (A)An organizational structure of the program, its operations, and its funding.(B)Ratesetting and other costs to participants, (C)Provisions for disclosure and due process in setting rates and allocating costs among participants.

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5 service provider or community choice aggregator shall post a bond or demonstrate insurance sufficient to cover those reentry fees” in the event of an involuntary return of CCA customers back to bundled service.6 Timing and Deadlines
The Public Utilities Code establishes requirements that direct the Commission how and when to respond to Implementation Plan filings. Within 10 days of an Implementation Plan filing, the Commission must notify the respective electrical cooperation of the filing.7 Additionally, within 90 days of the filing of an Implementation Plan, the commission must “certify that it has received the plan” as well as provide the CCA with its findings regarding cost recovery.8

(D)The methods for entering and terminating agreements with other entities. (E)The rights and responsibilities of program participants, including, but not limited to, consumer protection procedures, credit issues, and shutoff procedures. (F)Termination of the program. (G)A description of the third parties that will be supplying electricity under the program, including, but not limited to, information about financial, technical, and operational capabilities.
6 Regarding the bond requirement in Section 394.25(e), in 2007 the Commission established in Resolution E-4133 an interim bond amount of $100,000. Currently the Commission is examining the permanent CCA bond calculation methodology in R.03-10-003.
7 Section 366.2(c)(7) states:

Within 90 days after the community choice aggregator establishing load aggregation files its implementation plan, the commission shall certify that it has received the implementation plan, including any additional information necessary to determine a cost-recovery mechanism. After certification of receipt of the implementation plan and any additional information requested, the commission shall then provide the community choice aggregator with its findings regarding any cost recovery that must be paid by customers of the community choice aggregator to prevent a shifting of costs as provided for in subdivisions (d), (e), and (f).
8 Section 366.2(c)(7).

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6 Finally, the CCA “shall register with the Commission, which may require additional information to ensure compliance with basic consumer protection rules and other procedural matters.”9
Overview of CCA Resource Adequacy Requirements
As more CCAs launch, it is important to consider how a registration process interacts with a CCA’s compliance with its Resource Adequacy requirements.

All Load-Serving Entities (LSEs) are subject to Resource Adequacy (RA) requirements pursuant to Section 380. Section 380(k) defines LSEs to include CCAs. Additionally, D.05-12-041 in Conclusion of Law 19 states that “The utilities will not procure power on behalf of CCA customers as part of their resource adequacy planning.”
The Commission in D.04-10-035 adopted a protocol which required LSEs to submit load forecasts using their best estimates of future customers and their loads. The Commission established a preliminary load forecast submission timeline in D.05-10-042.10
There are two mandatory annual load forecast deadlines that an LSE must comply with in order to receive an annual RA obligation responsibility for the following year.11 First, an LSE must file a preliminary load forecast by mid-April for the following calendar year. An LSE then must file a revised forecast in

9 Section 366.2(c)(15).
10 D.05-10-042, page 83.
11 D.04-10-035 adopted a protocol whereby LSEs are required to submit load forecasts using their best estimates of future customers and their loads. D.05-10-042 at page 83 specified the preliminary load forecast submission timeline and set April 15 as the date for the submission of preliminary load forecasts. D.11-06-022 at page 38 modified the year-ahead forecast timeline to include optional revisions to be submitted by Aug. 19th of each year. D.17-06-027 ordered that the revised August forecast be mandatory.

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7 August.12 The August forecast was intended to refine and improve the accuracy of April forecast.
13 The timeline of RA load forecast submissions has practical implications for newly forming CCAs and expanding CCAs. If an existing or pre-operational CCA does not submit an annual load forecast, they are not allocated a year-ahead RA obligation for the following year. In this scenario, the incumbent utility remains responsible for that load and procures RA for those customers, even if those customers are about to be served by a CCA. This scenario is most likely to occur if a CCA launches or expands service to customers (or additional customers in the case of an existing, yet expanding CCA) after the RA annual load forecast deadlines without filing an annual load forecast.

As a result, the utilities incur short-term power purchase costs for the customers of CCAs in their launch or expansion year. Utilities procuring for CCAs in their first launch or expansion year creates a cost shifting challenge. D.11-12-018 excluded power purchase transactions less than a year in term from the total portfolio calculation of the Power Charge Indifference Adjustment (PCIA).

Consequently, Resource Adequacy contracts of over one year are captured by the PCIA, but Resource Adequacy contracts of less than one year are not captured by the PCIA. Therefore, such costs are borne by bundled customers, potentially resulting in millions of dollars annually of stranded costs and potentially in contravention of the indifference requirement of Section 366.2 Energy Division issued data requests to PG&E confirming the existence of stranded costs. Responses to these data requests were confidential because of the market-sensitive information they contain. The Commission does not rely on those responses in making the determinations made herein.

12 Although D.11-06-022 modified the year-ahead forecast timeline to include optional revisions to be submitted by Aug. 19th of each year, later D.17-06-027 (OP 7) ordered that the revised August forecast be mandatory. The exact date of the August deadline varies by year.
13 D.17-06-027, Finding of Fact 11.

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Resolution E-4907 / SC8 February 9, 2018
8 Public information illustrates the scale of load migration happening in the yearahead RA program. Existing and new CCAs that were not a part of the year ahead 2018 RA process but plan to serve load in 2018 would have been allocated a System Peak RA requirement of approximately 3,616 MW and a local RA requirement of approximately 1,793 MW. These year-ahead RA requirements were met by the utilities that currently serve these customers. Some of these costs are recovered by the PCIA, however, any contracts less than one year are not captured by the PCIA and are borne by remaining bundled customers. Due to the confidentiality of utility’s market position, the proportion of those contracts that are less than one year cannot be disclosed publicly.

In addition, if the California Independent System Operator (CAISO) procures back-stop capacity through its capacity procurement mechanism (CPM), it appears based on the CAISO’s tariff language these costs will be allocated only to those LSEs that exist at the time of the designation (annual designations would occur in December, before the compliance year). It is not yet clear if the PCIA addresses this potential cost-shifting issue.

DISCUSSION
D.05-12-041 ordered the Executive Director to develop and publish two distinct processes in Ordering Paragraphs (OP) 8 and 10 of that Decision.

D.05-12-041 Ordering Paragraph 8 Implementation
Ordering Paragraph 8 requires the Executive Director to develop and publish the steps of an informal process of review that provides a forum for the CCA and the utility to understand the CCA’s Implementation Plans and assures that the CCA is able to comply with the utility’s tariffs.

The goal of this “forum” is to “facilitate the smoother operation of the CCA where its policies, practices, and decisions may affect the utility and its customers.”14 The operation and launch of a CCA program inherently requires logistical coordination between the utility and the CCA, and many CCA-utility

14 OP 8, D.05-12-041.

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9 partnerships must engage in these kinds of information-sharing discussions to facilitate smooth transitions to CCA service.

In order to comply with the directive of Ordering Paragraph 8, at the request of either the CCA or the utility, the parties must “meet and confer” as soon as reasonably practical. If the first attempts at resolution are not successful, the parties are required to meet in person. Should the parties be unable to reach consensus after the in-person meeting(s), either party may request that Energy Division assist by sponsoring a moderated in-person discussion between the parties. Such a request should come in the form of a request to the Director of Energy Division explaining the general nature of any unresolved issues regarding CCA compliance with utility tariffs. During the “meet and confer” parties shall discuss the contents of the CCA’s Implementation Plan and any relevant issues with compliance with utility tariffs.

D.05-12-041 Ordering Paragraph 10 Implementation
Ordering Paragraph 10 of D.05-12-041 requires the Executive Director to prepare and publish instructions for CCAs and utilities that includes a timeline and describes the procedures for submitting and certifying receipt of the Implementation Plan, notice to customers, notice to CCAs of the appropriate Cost Responsibility Surcharges (CRS), and registration of CCAs.

Adopted Timeline for 2019 and Beyond
Appendices A and B of this Resolution include a timeline of the CCA registration process, including the timeline adopted by this Resolution.

The Prior Timeline in Appendix B reflects the current practice of CCA registration. The statutory deadlines in the Prior Timeline were established in Section 366.2. However, several milestones in the Registration process did not have deadlines defined by statute. These milestones are represented as “undefined” in the Prior Timeline. D.12-05.041 included an illustrative registration timeline based on statutory deadlines associated with CCA implementation.15

15 D.05-12-041, Attachment D.

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10 The Adopted Timeline modifies the Prior Timeline and the Illustrative Timeline (proposed in D.05-12-041 Attachment D) in several respects. First, the Adopted Timeline includes a deadline by which Implementation Plans must be received in order for CCAs to serve new load beginning January 1 of the following year. The goal of this requirement is to assist the proposed CCA in securing the certification and registration within enough time to file its preliminary load forecast by mid-April in order to serve load the following calendar year.

Second, the Adopted Timeline includes the Meet-and-Confer option for the CCA and the utility to discuss how the CCA will conform its operations to the utility’s tariff requirements. Third, the Adopted Timeline includes the deadlines for submission of CCA RA load forecasts in the year prior to a CCA beginning to serve load. Fourth, the Adopted Timeline includes a deadline by which the CCA must submit its Registration Packet and receive confirmation of registration.

In order to coordinate the launch of a new or expanding CCA with the RA requirements, the Implementation Plan and Statement of Intent must be submitted to the Commission on or before January 1 in order to serve load in the following year.16
These requirements are authorized by Section 366.2(c)(4), which requires a CCA to “provide for universal access, reliability, equitable treatment of all classes of customers, and any requirements established by state law or by the commission concerning aggregated service.”
17 Additionally, Load-Serving
Entities, including CCAs, must comply with RA requirements pursuant to Section 380(a). Current RA rules require all LSEs to file an annual load forecast if they plan to serve load in the following year. Additionally, Section 366.2(c)(8) also supports this action and compels the Commission to “designate the earliest possible effective date for implementation of a community choice aggregation program, taking into consideration the impact on any annual procurement plan of the electrical corporation that has been approved by the commission.”

16 For example, a new or expanding CCA intending to serve new load in 2020 must submit its Implementation Plan on or before January 1, 2019. 17 Section 366.2(c)(4), emphasis added.

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11 Thus, in order to comply with the year-ahead RA process, Implementation Plans, including Implementation Plans of an existing CCA that expands its territory, must be received by January 1 in order to serve load in the following year Adopted Timeline for Transition Year Only (2018)
a. CCAs that filed by December 8, 2017
Prior to the mailing of the draft of this Resolution on December 8, 2017, the following Implementation Plans were submitted to the Commission:

1. Los Angeles Community Choice Energy

2. East Bay Community Energy

3. Redwood Coast Energy Authority Expansion to the City of Ferndale

4. Monterey Bay Community Power

5. Pioneer Community Energy

6. City of Rancho Mirage

7. Valley Clean Energy Alliance

8. City of Solana Beach

9. City of San Jose

10. MCE’s expansion to the unincorporated areas of Contra Costa County; the cities of Concord, Martinez, Oakley, Pinole, Pittsburg and San Ramon; and the towns of Danville and Moraga
Collectively these Implementation Plans represent approximately 3,600 MW of new CCA load for 2018. This resolution has no effect on these 10 Implementation Plans or expansions
b. CCAs that filed after December 8, 2017
Following the mailing date of this Resolution on December 8, 2017, the following Implementation Plans have been submitted to the Commission:

1. Desert Community Energy

2. King City

3. Riverside CCA

4. Silicon Valley Clean Energy’s Expansion to Milpitas

5. Los Angeles Community Choice Energy’s Expansion to serve an additional 21 cities Collectively these additional Implementation Plans represent approximately 1700 MW of new CCA load that CCAs express a desire to serve in 2018. These five CCAs are impacted by the new timeline adopted in this resolution and may serve load no sooner than January 1, 2019, assuming all deadlines set forth below are met, unless these CCAs apply for a waiver from this resolution to serve customers in 2018 as set forth in section (c) below.

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12 Energy Division will complete an expedited review of the Implementation Plans submitted by the five CCAs above as well as any additional Implementation Plans and registration packages received on or before March 1, 2018. Energy Division will complete its review by April 13, 2018. CCAs certified by April 13, 2018 must submit their registration packets (including signed service agreements and bond) no later than April 20, 2018 so that those CCAs are certified and registered before the Resource Adequacy annual load forecast deadline in April 2018. This will allow these CCAs to serve load in 2019. c. Waiver Process
Any new or expanding CCA may request a waiver from the timelines set forth in this resolution in order to begin service in that new or expanded territory prior to January 1, 2019. To request a waiver either:

A. The CCA and utility in whose service territory the CCA intends to begin service shall jointly submit a Tier 1 Advice Letter no later than 75 days prior to the RA compliance month in which the CCA wishes to begin service. This Advice Letter shall provide notification that the utility and CCA mutually agree (via payment, allocation of RA or a combination thereof) that they have addressed RA requirements and cost responsibility concerns raised by the intra-year load migration for 2018.18 Notification of agreements must include what categories of RA for what periods are being satisfied; or,
B. If no agreement is reached, the CCA shall file a Tier 1 Advice Letter no later than 75 days prior to the RA compliance month in which the CCA wishes to begin service. This Advice Letter shall provide notification that the utility and the CCA are unable to reach agreement to address the RA requirements and cost responsibility concerns raised by the intra-year load migration for 2018, and shall state that the CCA agrees to be bound by a future Commission determination in the RA proceeding (R.17-09-020) regarding cost responsibility for intra-year load migration, subject to appellate rights under the Commission’s Rules. The CCA then shall file a

18 Any allocation of RA can be a portion of a contract, a group of contracts, a pro rata share of the portfolio, or a combination thereof in addition to other forms of payment not identified.

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13 motion in the RA proceeding seeking such a determination within 60 days of the submittal of the Advice Letter. Submittal of this Advice Letter allows the CCA to begin service in 75 days later and shifts RA responsibility from the utility to the CCA.

CCAs Forming in Small and Multi-Jurisdictional Utility Territories Should a CCA form in a Small and Multi-Jurisdictional Utility (SMJU) territory, various procedural, cost-shifting, and other potential issues will be presented.

Those issues are not being addressed in this Resolution, but the Commission expects to address these issues in an as yet determined forum.

Procedural Components for CCA Implementation Plans
Procedure for Submission and Certification of Receipt
This Resolution adopts a new deadline for submission of Implementation Plans.

Implementation Plans will be submitted to the Director of the Energy Division both via email and a hard copy on or before January 119 in order to serve load in the following year.20 Within 90 days of receiving an Implementation Plan, the Energy Division will certify that the plan assuming it meets all requirements.

Notice to Customers
This Resolution adopts no changes for Notice to Customers. Implementation Plans shall include the timing of notices sent to utility customers who will be transitioned to CCA service.

Notice to Customers of the Appropriate Cost Responsibility Surcharge (CRS) This Resolution adopts no changes for Notice to Customers of the Appropriate CRS. The current Cost Responsibility Surcharge (CRS) has three major components: the Department of Water Resources (DWR) Bond Charge, the Competitive Transition Charge, and the Power Charge Indifference Adjustment (PCIA).

19 Except for 2018, where plans may be submitted by March 1, 2018. 20 For 2018, Energy Division will certify plans by 4/13 if received by 3/1/18 as long as plans are reasonably complete and meet all requirements.

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Resolution E-4907 / SC8 February 9, 2018
14 CCAs shall include in their Implementation Plans how they will notify customers of the applicable CRS. The PCIA methodology is currently under reconsideration in R.17-06-026.

Registration of CCAs
This Resolution adopts two new deadlines for CCA registration. First, this Resolution requires that a CCA submit its registration packet to the CPUC within 90 days of filing its Implementation Plan. Second, this Resolution requires that if the Registration Packet is complete, the CPUC will confirm the CCA’s registration within 120 days of the CCA submittal of its Implementation Plan assuming it meets all requirements.

To register, a CCA must submit its registration packet including a signed service agreement with the utility and a bond pursuant to Section 394.25 (e). The interim bond amount was set to $100,000 in Resolution E-4133 (2007) and the amount of the bond is currently under consideration in R.03-10-003.

Once a bond has been submitted, Energy Division will issue a registration letter confirming completion of all registration requirements. After a potential or expanding CCA has fulfilled the above requirements, it may initiate service to its new customers no earlier than the service date authorized by this Resolution.

COMMENTS
Public Utilities Code section 311(g)(1) provides that this resolution must be served on all parties and subject to at least 30 days public review and comment prior to a vote of the Commission. The draft Resolution was mailed for Comments on December 8, 2017.

The deadline for comments was extended to January 11, 2018 and reply comments were allowed seven days later.

Over 60 comments and reply comments were received from the public, including numerous individual stakeholders as well as organizations. Of those comments, the majority opposed this resolution. The Joint Utilities (SDG&E, SCE and PG&E), TURN, ORA, and the Coalition of California Utility Employees generally Attachment 5
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15 supported Resolution E-4907, with some caveats. Comments primarily focused on the following topics: timing, policy effects, and due process.

Timing
Many comments expressed opposition to Draft Resolution E-4907 and urged the Commission to delay action on Resolution. Many comments stated that Commission consideration of the Resolution in January or February 2018 presented too short a time period for adequate review and analysis.

Resolution E-4907 was held from the January 11, 2018 Commission meeting and scheduled for the February 8, 2018 Commission meeting. The deadline for comments was extended from December 29, 2017 to January 11, 2018. Reply comments were accepted with a deadline of January 18, 2018. The Commission is satisfied that it has provided adequate time for comment and has the information that it needs to decide the issues presented by this resolution.

Policy Effects
Some opposing commenters cited the significant negative impact to nascent CCA programs and expanding CCAs for 2018 and for 2019. They asserted that Draft Resolution E-4907 places substantial and unnecessary burdens on newly forming CCAs. Numerous stakeholders stated that communities invested significant time and resources to launch CCA programs and that these communities would be unfairly harmed in delaying a CCA’s service date. Delay of service to new load represents a delay in associated revenues and program benefits according to some commenters. Many asserted that the proposed timeline was arbitrary.

Although Resolution E-4907 may delay some CCAs’ desired date to begin service, any such delay would be for a finite period and for the purpose of avoiding unlawful cost shifting. Section 366.2 (c) (8) requires:

No entity proposing community choice aggregation shall act to furnish electricity to electricity consumers within its boundaries until the commission determines the cost recovery that must be paid by the customers of that proposed community choice aggregation program, as provided for in subdivisions (d), (e), and (f). The commission shall designate the earliest possible effective date for implementation of a community choice aggregation program, taking into consideration the Attachment 5
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16 impact on any annual procurement plan of the electrical corporation that has been approved by the commission. [emphasis added.] Here, Resolution E-4907 designates the earliest possible effective date, taking into account the year-ahead requirements of the Resource Adequacy program in conjunction with our responsibility to avoid shifting costs onto bundled customers. Resource Adequacy is a key component of annual procurement planning and a responsibility of all Load-Serving Entities. The timeline requirements adopted by Resolution E-4907 are allowed by Section 366.2 (c) (8).

Revisions to the resolution adjust compliance dates to ensure that the new provisions are consistent with the requirements of Section 366.2(c)(8) that the commission designate the earliest possible effective date for implementation of a community choice aggregation program.

Due Process
Numerous commenters assert that the resolution violates their due process rights. We disagree. The changes in the CCA timeline made by this resolution are an exercise of authority the Commission has had since 2002. Section 366.2(c)(8) establishes the authority of the Commission to designate a CCA’s start date with consideration of the impact on the electrical corporation’s annual procurement. The Commission could have set a start date/timeline for a CCA in a letter certifying its Implementation Plan. There is no substantive difference here, where the Commission is simply setting that start date/timeline for all CCAs.

Ordering Paragraph 10 of D.05-12-041, moreover, requires the Executive Director to “prepare and publish instructions for CCAs and utilities that includes a timeline and describes the procedures for submitting and certifying receipt of the Implementation Plan, notice to customers, notice to CCAs of the appropriate CRS, and registration of CCAs.” This resolution effectuates that order.

Commenters assert that there was no opportunity to be heard. We disagree.

Comments on draft resolutions are normally afforded about 20 days to comment.21 Here, in response to requests from commenters, additional time was

21 Compare section 311(g)(1) with California Public Utilities Commission, Rules of Practice and Procedure (Rules), Rule 14.5.

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17 afforded for comments. In addition, reply comments, while not normally allowed, were allowed.

Finally, two additional changes were made in response to comments. First, the deadline to submit Implementation Plans in 2018 has been moved forward to March 1, 2018, allowing several additional CCAs to begin service in 2019.

Second, CCAs that desire to serve in may request a waiver if they reach an agreement with the incumbent utility to resolve RA cost-shifting concerns. These changes provide greater flexibility to CCAs on the date they can begin service.

FINDINGS AND CONCLUSIONS

1. Ordering Paragraph 8 of D.05-12-041 requires that the Executive Director develop and publish the steps of an informal process of review that provides a forum for the CCA and the utility to understand the CCA’s implementation plans and assures the CCA is able to comply with utility tariffs.

2. Ordering Paragraph 8 of D.05-12-041 requires that the forum be mandatory at the request of either the utility or the CCA and where the request is presented in writing with a recitation of disputed items or areas of concern. The process shall implicate no approvals, either formal or informal, from the Commission.

Utility tariffs shall describe the meet and confer process for resolving disputes over operational issues prior to initiation of services.

3. The Commission should develop and publish the steps of an informal process of review that provides a forum for CCAs and utilities as directed in Ordering Paragraph 8 of D.05-12-041.

4. Ordering Paragraph 10 of D.05-12-041 requires the Executive Director to prepare and publish instructions for CCAs and utilities that includes a timeline and describes the procedures for submitting and certifying receipt of the Implementation Plan, notice to customers, notice to CCAs of the appropriate

5. The Commission should prepare and publish instructions for CCAs and utilities that includes a timeline and describes the procedures for submitting and certifying receipt of the Implementation Plan, notice to customers, notice to CCAs of the appropriate Cost Responsibility Surcharge (CRS), and Attachment 5
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18 registration of CCAs. Cost Responsibility Surcharge (CRS), and registration of CCAs.

6. CCAs must comply with the Resource Adequacy requirements as set forth in Public Utilities Code Section 380 before beginning service.

THEREFORE IT IS ORDERED THAT:

1. Within 14 days of the effective date of this Resolution, Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas and Electric Company (SDG&E), shall update their tariffs and submit Tier 2 Advice Letters with the adopted timeline and procedures listed in Appendix A.

2. Prospective or expanding Community Choice Aggregators who have not yet submitted an Implementation Plan as of December 8, 2017 shall file their Implementation Plans pursuant to the adopted timeline and procedures listed in Appendices A and B and fulfill the Resource Adequacy portion of Appendices A and B prior to initiating service to customers unless they receive a waiver from the Commission as described in Paragraph 3 below.

This Resolution is not retroactive.

3. Any new or expanding CCA may request a waiver from the timelines set forth in this resolution in order to begin service prior to the deadlines in Appendices A and B. To request a waiver either:

A. The CCA and utility in whose service territory the CCA intends to begin service shall jointly submit a Tier 1 Advice Letter no later than 75 days prior to the RA compliance month in which the CCA wishes to begin service. This Advice Letter shall provide notification that the utility and CCA mutually agree (via payment, allocation of RA or a combination thereof) that they have addressed RA requirements and cost responsibility concerns raised by the intra-year load migration for 2018. Notification of agreements must include what categories of RA for what periods are being satisfied; or,
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19 B. If no agreement is reached, the CCA shall file a Tier 1 Advice Letter no later than 75 days prior to the RA compliance month in which the CCA wishes to begin service. This Advice Letter shall provide notification that the utility and the CCA are unable to reach agreement to address the RA requirements and cost responsibility concerns raised by the intra-year load migration for 2018, and shall state that the CCA agrees to be bound by a future Commission determination in the RA proceeding (R.17-09-020) regarding cost responsibility for intra-year load migration, subject to appellate rights under the Commission’s Rules. The CCA then shall file a motion in the RA proceeding seeking such a determination within 60 days of the submittal of the Advice Letter. Submittal of this Advice Letter allows the CCA to begin service in 75 days later and shifts RA responsibility from the utility to the CCA.

4. Commission staff will process Implementation Plans pursuant to the adopted timeline and procedures listed in Appendices A and B.

5. The Commission will revisit this process, if necessary, depending on the outcome of R.03-10-003 or successor proceedings.

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Resolution E-4907 / SC8 February 9, 2018
20 This Resolution is effective today.

I certify that the foregoing resolution was duly introduced, passed and adopted at a conference of the Public Utilities Commission of the State of California held on February 8, 2018; the following Commissioners voting favorably thereon:
/s/TIMOTHY J. SULLIVAN
TIMOTHY J. SULLIVAN
Executive Director

MICHAEL PICKER
President
CARLA J. PETERMAN
LIANE M. RANDOLPH

MARTHA GUZMAN ACEVES

CLIFFORD RECHTSCHAFFEN
Commissioners
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Resolution E-4907 / SC8 February 9, 2018
21 Appendix A: Adopted CCA Registration Timeline and Procedures

22 For Plans to be submitted in 2018 to serve load in 2019, this deadline is extended to March 1, 2018.
23 For Plans submitted by March 1, 2018, CPUC will complete review by April 13, 2018.

Date Action
Day 1, Year 1
(On or before January 1
Year 1)22
(1) The prospective or expanding CCA submits its Implementation Plan to Energy Division and serves it on the R.03-10-003 Service List, on the R.16-02-007 Service List, and on the R.17-09-020 Service List, or successor proceedings.

Day 1 – 10, Year 1 (1) The CPUC notifies the Utility servicing the customers that are proposed for aggregation that an implementation plan initiating their CCA program has been filed.

Day 1 – 60, Year 1 (1) The CCA provides a draft customer notice to CPUC’s Public advisor.
(2) Within 15 days of receipt of the draft notice, the Public Advisor shall finalize that notice and send it to the CCA.

DAY 1 – 90, Year 123 (1) The CPUC sends a letter confirming that it has received the Implementation Plan and certifying that the CCA has satisfied the requirements of an Implementation Plan pursuant to
Section 366.2(c) (3). This letter informs the CCA about the cost recovery mechanism as required by P.U. Code Section 366.2(c)(7).

If and when the CPUC requests additional information from a CCA, the CCA shall respond to CPUC staff within 10 days, or notify the staff of a date when the information will be available.
(2) The CPUC provides the CCA with its findings regarding any cost recovery that must be paid by customers of the CCA in order to prevent cost shifting. (P.U. Code Section 366.2 (c) (7).)
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22 24 For 2018, the bond and signed service agreement must be submitted by April 20, 2018. 25 For 2018, the CPUC will confirm registration by April 27, 2018. (3) The CCA and the Utility should Meet-and-Confer regarding the CCA’s ability to conform its operations to the Utility’s tariff requirements.

DAY 1 – 90, Year 124 (1) The CCA submits its registration packet to the CPUC, including:
a. Signed service agreement with the utility, and
b. CCA interim bond of $100,000 or as determined in
R.03-10-003
Day 90 – 120, Year 125 (1) If the registration packet is complete, the CPUC confirms Registration as a CCA.

April, Year 1 (1) The CCA submits its year ahead Resource Adequacy forecast (P.U. Code Section 380)
August, Year 1 (1) The CCA submits its updated year-ahead RA forecast October Year 1 (75 days
before service
commences)
(1) CCAs submit their Monthly load migration forecast for the Resource Adequacy program, filed about 75 days prior to the compliance month.

Within 60 days of the
CCA’s Commencement
of Customer Automatic
Enrollment
(1) The CCA shall send its first notice to the prospective customers describing the terms and conditions of the
services being offered and the customer’s opt-out
opportunity prior to commencing its automatic enrollment. (P.U. Code Section 366.2 (c) (13) (A))
Within 30 days of the
CCA’s Commencement
of Customer Automatic
Enrollment
(1) The CCA shall send a second notice to the prospective customers describing the terms and conditions of the
services being offered and the customer’s opt-out
opportunity prior to commencing its automatic enrollment. (P.U. Code Section 366.2 (c) (13) (A))
(2) Once notified of a CCA program, the Utility shall transfer all applicable accounts to the new supplier within a 30-day period from the date of the close of their normally
scheduled monthly metering and billing process. (P.U.

Code Section 366.2 (c) (16))
January 1, Year 2 (1) CCA begins service.

Following the CCA’s
Automatic Customer
Enrollment
(1) The CCA shall inform participating customers for no less than two consecutive billing cycles that:
a. They have been automatically enrolled into the CCA
program and that each customer has the right to opt out of the CCA program without penalty. (P.U. Code Section
366.2 (c) (13)(A)(i).)
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23 b. Terms and conditions of the services being offered. (P.U. Code Section 366.2 (c) (13)(A)(ii).)
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24 Appendix B: Schematic Comparison of Prior and Adopted Timelines for CCA Registration Process Prior Timeline
Adopted Timeline
CCA submits Implementation
Plan to CPUC
Day 1 Day 10 Day 60 Day 90
CPUC notifies the Utility that an
implementation plan has been filed.

CPUC certifies it has received the implementation plan and provides CCA with findings regarding cost recovery that must be paid by customers of the CCA in order to prevent cost shifting.

CCA provides draft customer notice to CPUC Public
Advisor. Within 15 days of CCA providing draft
notice, public advisor will finalize CCA notice
CCA submits its
registration packet (bond
and service agreement)
CCA files its annual
load forecasts
Undefined
CCA begins serving
load
Sometime after submitting bond, CCA becomes
registered, receives registration number
The following annual RA forecast
deadline (April or August)
CCA submits
Implementation Plan to
CPUC
Day 1, on or
before January 1,
Year 1
Day 10 Day 60 Day 90
CPUC notifies the Utility that an
implementation plan has been filed.

CCA provides draft customer notice to CPUC Public Advisor. Within 15 days of CCA providing draft notice, public advisor will finalize CCA notice
CCA files its
annual load
forecasts CCA submits its registration
packet (bond and service
agreement)
Day 120
CPUC confirms registration of a CCA, issues
the CCA registration number, and publishes
the Implementation Plan and Registration
number the CCA page of the website.

CCA
begins
serving
load
January,
Year 2
April,
Year 1
August,
Year 1
CCA files its
revised
annual load
forecasts
CPUC certifies it has received the implementation plan and provides CCA with findings regarding cost recovery that must be paid by customers of the CCA in order to prevent cost shifting.

No changes Undefined deadlines Proposed
change
s
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F Clean Energy Alliance Joint Powers Agreement
Effective: November 4, 2019
As amended by Resolution 2021-012 dated September 30, 2021 As further amended by Resolution 2021-014 dated November 18, 2021 and attached Amendment No. 1.

As further amended by Resolution 2021-015 dated December 17, 2021 1-3045-000 l\2606345vl.doc
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F

CLEAN ENERGY ALLIANCE JOINT POWERS AGREEMENT
This Joint Powers Agreement (the “Agreement”), effective as ofNovember 4, 2019, is made by the Parties ofthe Clean Energy Alliance and entered into pursuant to the provisions ofTitle 1, Division 7, Chapter 5, Article 1 (Section 6500 et seq.) ofthe California Government Code relating to the joint exercise ofpowers among the public agencies set forth in Exhibit B.

RECITALS

1. The Parties are public agencies sharing various powers under California law, including but not limited to the power to purchase, supply, and aggregate electricity for themselves and their customers.

2. SB 350, adopted in 2015, mandates a reduction in greenhouse gas emissions to 40 percent below 1990 levels by 2030 and to 80 percent below 1990 levels by 2050. In 2018, the State Legislature adopted SB 100, which directs the Renewable Portfolio Standard to be increased to 60% renewable by 2030 and establishes a policy for eligible renewable energy resources and zero-carbon resources to supply 100 percent of electricity retail sales to California end-use customers by 2045.

3. The purposes for the Founding Members (as such term is defined in Exhibit A) entering into this Agreement include procuring/developing electrical energy for customers in participatingjurisdictions, addressing climate change by reducing energy-related greenhouse gas emissions, promoting electrical rate price stability and cost savings, and fostering consumer choice and local economic benefits such asjob creation, local energy programs and local power development. It is the intent ofthis Agreement to promote the development and use of a wide range ofrenewable energy sources and energy efficiency programs, including but not limited to state, regional, and local solar and wind energy production and energy storage.

4. The Parties to this Agreement desire to establish a separate public agency, known as the Clean Energy Alliance (“Authority”), under the provisions ofthe Joint Exercise of Powers Act ofthe State ofCalifornia (Government Code Section 6500 et seq.) (“Act”) in order to collectively study, promote, develop, conduct, operate, and manage energy programs.

5. The Founding Members have each adopted an ordinance electing to implement through the Authority a Community Choice Aggregation program pursuant to California Public Utilities Code Section 366.2 (“CCA Program”). The first priority ofthe Authority will be the consideration ofthose actions necessary to implement the CCA Program on behalfof participating jurisdictions.

6. By establishing the Authority, the Parties seek to:
(a) Provide electricity service to residents and businesses located within the jurisdictional boundaries ofthe public agencies that are members ofthe Authority in a responsible, reliable, innovative, and efficient manner;
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F (b) Provide electric generation rates to all ratepayers that are competitive with those offered by the Investor Owned Utility, San Diego Gas & Electric (SDG&E), for similar products with a target generation rate at least 2 percent below SDG&E’s base product generation rate;
(c) Offer a mix of energy products for standard commodity electric service that provide a cleaner power portfolio than that offered by SDG&E for similar service and other options, including a 90 percent and a 100 percent renewable content options in which communities and customers may “opt-up” and voluntarily participate, with the ultimate objective of achieving— and sustaining—the Climate Action Plan goals of the Parties, at competitive rates;
(d) Develop an aggregate electric supply portfolio with overall lower greenhouse gas (GHG) emissions than SDG&E, and one that supports near-term achievement ofthe Parties’ greenhouse gas reduction goals and renewable electricity goals; (e) Promote an energy portfolio that incorporates energy efficiency and demand response programs and pursues ambitious energy consumption reduction goals; (f) Pursue the procurement oflocal generation ofrenewable power developed by or within memberjurisdictions with an emphasis on local jobs, where appropriate, without limiting fair and open competition for projects or programs implemented by the Authority;
(g) Provide a range of energy product and program options, available to all Parties and customers, that best serve their needs, their local communities, and support regional sustainability efforts;
(h) Support low-income households having access to special utility rates including California Alternative Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) programs;
(i) Use discretionary program revenues to support the Authority’s long-term financial viability, enhance customer rate stability, and provide all Parties and their customers with access to innovative energy programs, projects and services throughout the jurisdiction ofthe Authority; and
(j) Create an administering Authority that seeks to maximize economic benefits and is financially sustainable, well-managed and responsive to regional and local priorities.

AGREEMENT
NOW, THEREFORE, in consideration ofthe mutual promises, covenants, and conditions hereinafter set forth, it is agreed by and among the Parties as follows:
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F

1. DEFINITIONS AND EXHIBITS

1.1 Definitions. Capitalized terms used in this Agreement shall have the meanings specified in Exhibit A, unless the context requires otherwise.

1.2 Documents Included. This Agreement consists ofthis document and the following exhibits, all ofwhich are hereby incorporated into this Agreement:

Exhibit A: Definitions
Exhibit B: List ofFounding Members and Parties added on or after October 1, 2020, per Section 2.4

2. FORMATION OF THE COMMUNITY CHOICE ENERGY AUTHORITY

2.1 Effective Date and Term. This Agreement shall become effective and the Authority shall exist as a separate public agency on the date this Agreement is executed by at least three Founding Members after the adoption ofthe ordinances required by Public Utilities Code Section 366.2(c)(12). The Authority shall provide notice to the Parties ofthe Effective Date. The Authority shall continue to exist, and this Agreement shall be effective, until the Agreement is terminated in accordance with Section 8.4 (Mutual Termination), subject to the rights ofthe Parties to withdraw from the Authority under Section 8.1.

2.2 Formation ofthe Authority. Under the Act, the Parties hereby create a separate joint exercise ofpower agency named the Clean Energy Alliance. Pursuant to Sections 6506 and 6507 ofthe Act, the Authority is a public agency separate from the Parties. The jurisdiction ofthe Authority shall be all territory within the geographic boundaries ofthe Parties; however, the Authority may, as authorized under applicable law, undertake any action outside such geographic boundaries as is necessary to the accomplishment ofits purpose.

2.3 Purpose. The purpose ofthis Agreement is to establish the Authority, to provide for its governance and administration, and to define the rights and obligations of the Parties. This Agreement authorizes the Authority to provide opportunities by which the Parties can work cooperatively to create economies ofscale and implement sustainable energy initiatives that reduce energy demand, increase energy efficiency, and advance the use of clean, efficient, and renewable resources in the region for the benefit of all the Parties and their constituents, including, but not limited to, establishing and operating a CCA Program.

2.4 Addition ofParties. After the initial formation ofthe Authority and prior to October 1, 2020, any incorporated municipality, county, or other public agency authorized to be a community choice aggregator under Public Utilities Code Section 331.1 and located within the service territory of SDG&E may become a member ofthe Authority ifit has completed a positive CCE Feasibility Study, adopted a CCA ordinance pursuant to Public Utilities Code Section 366.2(c)( 12), approved and executed this Agreement, and paid or agrees to pay its share ofthe 13045-000l\2606345v1 .doc
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F Initial Costs pursuant to Section 7.3.2 ofthis Agreement. Notwithstanding the foregoing, such public agency may be denied membership in the Authority ifthe Board determines within 60 days after the submittal ofthe CCE Feasibility Study that the addition ofthe public agency would create an undue risk or financial burden to the Authority or to the achievement ofthe CAP goals ofthe Parties.

On or after October 1, 2020, any incorporated municipality, county, or other public agency authorized to be a community choice aggregator under Public Utilities Code Section 331.1 and located within the service territory of SDG&E may apply to and become a member ofthe Authority if all the following conditions are met:

2.4.1 Adoption ofa resolution by a two-thirds vote ofthe entire Board authorizing membership in the Authority;

2.4.2 Adoption by the proposed member of a CCA ordinance as required by Public Utilities Code Section 366.2(c)(12) and approval and execution of this Agreement and other necessary program agreements by the proposed member;

2.4.3 Payment of a membership fee, if any, as may be required by the Board to cover Authority costs incurred in connection with adding the new party; and

2.4.4 Satisfaction of any other conditions established by the Board.

2.5 Continuing Participation. The Parties acknowledge that membership in the Authority may change by the addition, withdrawal and/or termination ofParties.

The Parties agree to participate with such other Parties as may later be added by the Board, as described in Section 2.4 (Addition ofParties) ofthis Agreement.

The Parties also agree that the withdrawal or termination of a Party shall not affect this Agreement or the remaining Parties’ continuing obligations under this Agreement.

3. POWERS

3.1 General Powers. The Authority shall have the powers common to the Parties which are necessary or appropriate to the accomplishment ofthe purposes ofthis Agreement, subject to the restrictions set forth in Section 3.4 (Limitation on Powers) ofthis Agreement.

3.2 Specific Powers. Specific powers ofthe Authority shall include, but not be limited to, each ofthe following powers, which may be exercised at the discretion ofthe Board:

3.2.1 make and enter into contracts;
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F

3.2.2 employ agents and employees, including but not limited to a Chief Executive Officer;

3.2.3 acquire, own, contract, manage, maintain, and operate any buildings, public works, improvements or other assets including but not limited to public electric generation resources;

3.2.4 acquire property for the public purposes ofthe Authority by eminent domain, or otherwise, except as limited under Section 6508 ofthe Act and Sections 3.6 and 4.12.3 ofthis Agreement, and to hold or dispose of any property; provided, however, the Authority shall not exercise the power of eminent domain within the jurisdiction of a Party without its affirmative vote under Section 4.12.2;

3.2.5 lease any property;

3.2.6 sue and be sued in its own name;

3.2.7 incur debts, liabilities, and obligations, including but not limited to loans from private lending sources pursuant to its temporary borrowing powers authorized by law pursuant to Government Code Section 53850 et seq. and authority under the Act;

3.2.8 issue revenue bonds and other forms ofindebtedness;

3.2.9 apply for, accept, and receive all licenses, permits, grants, loans or other aids from any federal, state or local public agency;

3.2.10 form independent corporations or entities, ifnecessary, to carry out energy supply and energy conservation programs;

3.2.11 submit documentation and notices, register, and comply with applicable orders, tariffs and agreements for the establishment and implementation of the CCA Program and other energy programs;

3.2.12 adopt rules, regulations, policies, bylaws and procedures governing the operation ofthe Authority;

3.2.13 make and enter into service agreements relating to the provision of services necessary to plan, implement, operate and administer the CCA Program and other energy programs, including the acquisition of electric power supply and the provision ofretail and regulatory support services;

3.2.14 receive revenues from sale of electricity and other energy-related programs; and
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3.2.15 Partner or otherwise work cooperatively with other CCA’s on the acquisition of electric resources, joint programs, advocacy and other efforts in the interests ofthe Authority.

3.3 Additional Powers to be Exercised. In addition to those powers common to each ofthe Parties, the Authority shall have those powers that may be conferred upon it by law and by subsequently enacted legislation.

3.4 Limitation on Powers. As required by Section 6509 ofthe Act, the powers of the Authority are subject to the restrictions upon the manner of exercising power possessed by the City of Solana Beach and any other restrictions on exercising the powers ofthe Authority that may be adopted by the Board.

3.5 Obligations ofthe Authority. The debts, liabilities, and obligations ofthe Authority shall not be the debts, liabilities, and obligations of any ofthe Parties unless a Party agrees in writing to assume any ofthe debts, liabilities, and obligations ofthe Authority with the approval ofits Governing Body, in its sole discretion. A Party that has not agreed in writing, as duly authorized by its Governing Body, to assume an Authority debt, liability, or obligation shall not be responsible in any way for such debt, liability, or obligation, regardless of any action by the Board. Further, the debts, liabilities and obligations ofthe City of Solana Beach related to or arising from its existing CCA program, commonly known as the Solana Energy Alliance, shall not be the debts, liabilities or obligations ofthe Authority or any ofthe Parties except the City of Solana Beach unless the Board approves assuming specific contracts entered into by the City of Solana Beach. Any such contracts assumed by the Authority shall be obligations ofthe Authority only and not of any ofthe Parties. Notwithstanding Sections 4.12.1 and 9.8 ofthis Agreement, this Section 3.5 shall not be amended or its liability limitations otherwise modified by an amendment to another part of this Agreement unless such amendment is approved by the Governing Body of each Party.

3.6 Compliance with Local Zoning and Building Laws. Notwithstanding any other provisions ofthis Agreement or state law, any facilities, buildings, structures or other projects (the “project”) developed, constructed or installed or caused to be developed, constructed or installed by the Authority within the territory ofthe Authority (which consists ofthe territorial jurisdiction ofthe Parties) shall comply with the General Plan, zoning, land use regulations, building laws and any applicable local Coastal Plan ofthe local jurisdiction within which the project is located.

3.7 Compliance-with the Political Reform Act and Government Code Section 1090. The Authority and its officers and employees shall comply with the Political Reform Act (Government Code Section 81000 et seq.) and Government Code Section 1090 et seq. The Board shall adopt a Conflict of Interest Code pursuant to Government Code Section 87300. The Board may 13045-0001 \2606345v1 .doc
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F adopt additional conflict ofinterest regulations in the Operating Policies and Procedures.

4. GOVERNANCE

4.1 Board ofDirectors.

4.1.1 The Governing Body ofthe Authority shall be a Board ofDirectors (“Board”) consisting of one Director for each Party appointed in accordance with Section 4.2 (Appointment and Removal ofDirectors) of this Agreement.

4.1.2 Each Director must be a member ofthe Governing Body ofthe appointing Party. Each Director shall serve at the pleasure ofthe Governing Body of the Party that appointed such Director and may be removed as Director by such Governing Body at any time. If at any time a vacancy occurs on the Board, then a replacement shall be appointed to fill the position ofthe previous Director within 45 days after the date that position becomes vacant.

4.1.3 The Governing Body of each Party also shall appoint an alternate to serve in the absence ofthe primary Director. The alternate also shall be a member ofthe Governing Body ofthe appointing Party. The alternate shall have all the rights and responsibilities ofthe primary Director when serving in his/her absence.

4.1.4 Any change to the size and composition ofthe Board other than what is described in this section shall require an amendment ofthis Agreement in accordance with Section 4.12.

4.2 Appointment and Removal of Directors. The Directors shall be appointed and may be removed as follows:

4.2.1 The Governing Body of each Party shall appoint and designate in writing one regular Director, who shall be authorized to act for and on behalf of the Party on matters within the powers ofthe Authority. The Governing Body of each Party shall appoint and designate in writing one alternate Director who may vote on matters when the regular Director is absent from a Board meeting. The alternate Director may vote on matters in committee, chair committees, and fully participate in discussion and debate during meetings. All Directors and alternates shall be subject to the Board’s adopted Conflict ofInterest Code.

4.2.2 A Director may be removed by the Board for cause in accordance with procedures adopted by the Board. Cause shall be defined for the purposes ofthis section as follows:
a. Unexcused absences from three consecutive Board meetings. 13045-0001\2606345vl.doc
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F b. Unauthorized disclosure of confidential information or documents from a closed session or the unauthorized disclosure ofinformation or documents provided to the Director on a confidential basis and whose public disclosure may be harmful to the interests ofthe Authority.
c. Violation of any ethics policies or code of conduct adopted by the Board.

Notwithstanding the foregoing, no Party shall be deprived ofits right to seat a Director on the Board and any such Party for which its Director and/or alternate Director has been removed may appoint a replacement.

4.3 Director Compensation. The Board may adopt by resolution a policy relating to the compensation or expense reimbursement ofits Directors.

4.4 Terms of Office. Each Party shall determine the term of office for its regular and alternate Director.

4.5 Purpose ofBoard. The general purpose ofthe Board is to:

4.5.1 Provide structure for administrative and fiscal oversight;

4.5.2 Retain a ChiefExecutive Officer to oversee day-to-day operations ofthe Authority;

4.5.3 Retain legal counsel;

4.5.4 Identify and pursue funding sources;

4.5.5 Set policy;

4.5.6 Optimize the utilization of available resources; and

4.5.7 Oversee all Committee activities.

4.6 Specific Responsibilities ofthe Board. The specific responsibilities ofthe Board shall be as follows:

4.6.1 Formulate and adopt an annual budget prior to the commencement ofthe fiscal year;

4.6.2 Develop and implement a financing and/or funding plan for ongoing Authority operations and capital improvements, ifapplicable;

4.6.3 Retain necessary and sufficient staff and adopt personnel and compensation policies, rules and regulations;
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4.6.4 Adopt policies for procuring electric supply and operational needs such as professional services, equipment and supplies;

4.6.5 Develop and implement a Strategic Plan to guide the development, procurement, and integration ofrenewable energy resources consistent with the intent and priorities identified in this Agreement;

4.6.6 Establish standing and ad hoc committees as necessary;

4.6.7 Set retail rates for power sold by the Authority and set charges for any other category ofretail service provided by the Authority;

4.6.8 Wind down and resolve all obligations ofthe Authority in the event the Authority is terminated pursuant to Section 8.2;

4.6.9 Conduct and oversee Authority operational audits at intervals not to exceed three years including review of customer access to Authority programs and benefits, where applicable;

4.6.10 Arrange for an annual independent fiscal audit;

4.6.11 Adopt such bylaws, rules and regulations necessary or desirable for the purposes set forth in this Agreement and consistent with this Agreement;

4.6.12 Exercise the Specific Powers identified in Sections 3.2 and 4.6 except as those which the Board may elect to delegate to the ChiefExecutive Officer; and

4.6.13 Discharge other duties as appropriate or necessary under this Agreement or required by law.

4.7 Startup Responsibilities. The Authority shall promptly act on the following matters:

4.7.1 Oversee the preparation of, adopt, and update an implementation plan for electrical load aggregation pursuant to Public Utilities Code Section 366.2(c)(3);

4.7.2 Prepare a statement ofintent for electrical load aggregation pursuant to Public Utilities Code Section 366.2(c)(4);

4.7.3 Obtain financing and/or funding as is necessary to support start up and ongoing working capital for the CCA Program; and

4.7.4 Acquire and maintain insurance in accordance with Section 9.3.

4.8 Meetings and Special Meetings of the Board. The Board shall hold at least four regular meetings per year, but the Board may provide for the holding ofregular 13045-000l\2606345v 1 .doc
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F meetings at more frequent intervals. The date, hour, and place of each regular meeting shall be fixed annually by resolution ofthe Board. The location of regular meetings may rotate for the convenience ofthe Parties, subject to Board approval and availability of appropriate meeting space. Regular meetings may be adjourned to another meeting time. Special meetings ofthe Board may be called in accordance with the provisions ofGovernment Code Section 54956. Directors may participate in meetings telephonically, with full voting rights, only to the extent permitted by law. Board meeting agendas generally shall be set, in consultation with the Board Chair, by the ChiefExecutive Officer appointed by the Board pursuant to Section 5.5. The Board itselfmay add items to the agenda upon majority vote pursuant to Section 4.11.1.

4.9 Brown Act Applicable. All meetings ofthe Board shall be conducted in accordance with the provisions ofthe Ralph M. Brown Act (Government Code Section 54950, et seq.).

4.10 Quorum. A simple majority ofthe Directors shall constitute a quorum. No actions may be taken by the Board without a quorum ofthe Directors present.

4.11 Board Voting. Except for matters subject to Special Voting under Section 4.12, Board action shall require the affirmative votes ofa majority ofthe Directors on the entire Board. The consequence of a tie vote shall be “no action” taken.

4.12 Special Voting.

4.12.1 The affirmative vote oftwo-thirds ofthe Directors ofthe entire Board shall be required to take any action on the following:
a. Issuing bonds or other forms of debt;
b. Adding or removing Parties or removing Directors; and c. Amending or terminating this Agreement or adopting or amending the bylaws ofthe Authority except as provided in Sections 3.5 and

4.12.3. At least 30 days advance written notice to the Parties shall be provided for such actions. Such notice shall include a copy of any proposed amendment to this Agreement or the bylaws ofthe Authority. The Authority shall also provide prompt written notice to all Parties ofthe action taken and attach the adopted amendment, resolution or agreement.

4.12.2 An affirmative vote ofthree-fourths ofthe entire Board shall be required to initiate any action for Eminent Domain and no eminent domain action shall be approved within the jurisdiction of a Party without the affirmative vote ofsuch Party’s Director.

4.12.3 An unanimous vote ofthe entire Board shall be required to amend the following provisions in this Agreement:
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F a. Section 2.3 (Purpose ofAgreement)
b. Section 3.6 (Compliance with Local Zoning)
c. Sections 4.11 and 4.12 (Voting Requirements)
d. Section 4.12.2 (Eminent Domain)
e. Section 6.5 (Power Supply Requirements)
f. Section 6.6 (Solana Energy Alliance Transition)

5. INTERNAL ORGANIZATION

5.1 Elected and Appointed Officers. For each fiscal year, the Board shall elect a Chair and Vice Chair from among the Directors and shall appoint a Secretary and a Treasurer as provided in Government Code section 6505.5. No Director may hold more than one such office at any time. Appointed officers shall not be elected officers ofthe Board.

5.2 Chair and Vice Chair. For each fiscal year, the Board shall elect a Chair and Vice Chair from among the Directors. The term of office ofthe Chair and Vice Chair shall continue for one year, but there shall be no limit on the number of terms held by either the Chair or Vice Chair. The Chair shall be the presiding officer of all Board meetings, and the Vice Chair shall serve in the absence ofthe Chair. The Chair shall perform duties as may be required by the Board. In the absence ofthe Chair, the Vice-Chair shall perform all ofthe Chair’s duties. The office ofthe Chair or Vice Chair shall be declared vacant and a new selection shall be made if: (a) the person serving dies, resigns, or the Party that the person represents removes the person as its representative on the Board, or (b) the Party that he or she represents withdraws from the Authority pursuant to the provisions ofthis Agreement. Upon a vacancy, the position shall be filled at the next regular meeting ofthe Board held after such vacancy occurs or as soon as practicable thereafter.

5.3 Secretary. The Board shall appoint a qualified person who is not on the Board to serve as Secretary. The Secretary shall be responsible for keeping the minutes of all meetings ofthe Board and all other office records ofthe Authority. Ifthe appointed Secretary is an employee of any Party, such Party shall be entitled to reimbursement for any documented out ofpocket costs it incurs in connection with such employee’s service as Secretary ofthe Authority, and full cost recovery for any documented hours ofservice provided by such employee during such Party’s normal working hours.

5.4 Treasurer/ChiefFinancial Officer and Auditor. The Board ofDirectors shall appoint a Treasurer who shall function as the combined offices ofTreasurer and Auditor and shall strictly comply with the statutes related to the duties and responsibilities specified in Section 6505.5 ofthe Act. The Treasurer for the 13045-000l\2606345v1 .doc
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F Authority shall be the depository and have custody of all money ofthe Authority from whatever source and shall draw all warrants and pay demands against the Authority as approved by the Board. The Treasurer shall cause an independent audit(s) ofthe finances ofthe Authority to be made by a certified public accountant, or public accountant, in compliance with Section 6505 ofthe Act.

The Treasurer shall report directly to the Board and shall comply with the requirements oftreasurers ofincorporated municipalities. The Board may transfer the responsibilities ofTreasurer to any qualified person or entity as the law allows at the time. The duties and obligations ofthe Treasurer are further specified in Section 7. The Treasurer shall serve at the pleasure ofthe Board. If the appointed Treasurer is an employee of any Party, such Party shall be entitled to reimbursement for any documented out ofpocket costs it incurs in connection with such employee’s service as Treasurer ofthe Authority, and full cost recovery for any documented hours ofservice provided by such employee during such Party’s normal working hours.

5.5 ChiefExecutive Officer. The Board shall appoint a ChiefExecutive Officer for the Authority, who shall be responsible for the day-to-day operation and management ofthe Authority and the CCA Program. The ChiefExecutive Officer may not be an elected member ofthe Board or otherwise represent any Party to the Authority. The ChiefExecutive Officer may exercise all powers of the Authority, except those powers specifically reserved to the Board, including but not limited to those set forth in Section 4.6 (Specific Responsibilities ofthe Board) ofthis Agreement or the Authority’s bylaws, or those powers which by law must be exercised by the Board. The ChiefExecutive Officer may enter into and execute power purchase agreements and other contracts, in accordance with criteria and policies established by the Board.

5.6 General Counsel. The Board shall appoint a qualified person to act as the Authority’s General Counsel, who shall not be a member ofthe Board, or an elected official or employee of a Party.

5.7 Bonding of Persons Having Access to Property. Pursuant to the Act, the Board shall designate the public officer or officers or person or persons who have charge of, handle, or have access to any property ofthe Authority exceeding a value as established by the Board, and shall require such public officer or officers or person or persons to file an official bond in an amount to be fixed by the Board.

5.8 Privileges and Immunities from Liability. All ofthe privileges and immunities from liability, exemption from laws, ordinances and rules, all pension, relief, disability, workers’ compensation and other benefits which apply to the activities of officers, agents or employees of a public agency when performing their respective functions shall apply to the officers, agents or employees ofthe Authority to the same degree and extent while engaged in the performance of any ofthe functions and other duties ofsuch officers, agents or employees under this Agreement. None ofthe officers, agents or employees directly employed by the Board shall be deemed, by reason oftheir employment by the Authority to be 13045-000l\2606345v1 .doc
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F employed by the Parties or by reason oftheir employment by the Authority, to be subject to any ofthe requirements ofthe Parties.

5.9 Commissions, Boards and Committees. The Board may establish any advisory commissions, boards, and committees as the Board deems appropriate to assist the Board in carrying out its functions and implementing the CCA Program, related energy programs, and the provisions ofthis Agreement. To the extent possible, the commissions, boards, and committees should have equal representation from each Party. The Board may establish criteria to qualify for appointment on its commissions, boards, and committees. The Board may establish rules, regulations, policies, or procedures to govern any such commissions, boards, or committees and shall determine whether members shall be entitled to reimbursement for expenses. The meetings ofthe commissions, boards, or committees shall be held in accordance with the requirements ofthe Ralph M.

Brown Act, as applicable.

IMPLEMENTATION ACTION AND AUTHORITY DOCUMENTS

6.1 Preliminary Implementation ofthe CCA Program.

6.1.1 Enabling Ordinance. In addition to the execution ofthis Agreement, each Party shall adopt an ordinance in accordance with Public Utilities Code Section 366.2(c)(12) for the purpose ofspecifying that the Party intends to implement a CCA Program by and through its participation in the Authority.

6.1.2 Implementation Plan. The Authority shall secure Board approval of an Implementation Plan meeting the requirements ofPublic Utilities Code Section 366.2 and any applicable Public Utilities Commission regulations, and consistent with the terms ofthis Agreement, as soon after the Effective Date as reasonably practicable but no later than December 31, 2019.

6.2 Authority Documents. The Parties acknowledge and agree that the affairs ofthe Authority will be implemented through various documents duly adopted by the Board through Board resolution or minute action, including but not necessarily limited to operational procedures and policies, the annual budget, and specific plans such as a local renewable energy development and integration plan and other policies defined as the Authority Documents by this Agreement. All such Authority Documents shall be consistent with and designed to advance the goals and objectives ofthe Authority as expressed in this Agreement. The Parties agree to abide by and comply with the terms and conditions of all such Authority Documents that may be adopted by the Board, subject to the Parties’ right to withdraw from the Authority as described in Section 8 (Withdrawal and Termination) ofthis Agreement.
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6.3 Integrated Resource Plan and Regulatory Compliance. The Authority shall cause to be prepared an Integrated Resource Plan in accordance with California Public Utilities Commission regulations, and consistent with the terms ofthis Agreement, that will ensure the long-term development and administration of a variety of energy programs that promote local renewable resources, conservation, demand response, and energy efficiency, while maintaining compliance with other regulatory requirements including the State Renewable Portfolio Standard (RPS) and customer rate competitiveness.

6.4 Renewable Portfolio Standards. The Authority shall provide its customers energy primarily from Category 1 and Category 2 eligible renewable resources, as defined under the California RPS and consistentwith the goals ofthe CCA Program. The Authority shall avoid the procurement of energy from Category 3 eligible renewable resources (unbundled Renewable Energy Credits or RECs) to the extent feasible. The Authority’s ultimate objective shall be to achieve— and sustain—a renewable energy portfolio with 100 percent renewable energy availability and usage, at competitive rates, within the Authority service territory by no later than 2035, and then beyond.

6.5 Power Supply Requirements. The Authority’s power supply base product will be greater than or equal to 50% qualified renewable resources. The Board shall establish product options with higher renewable and/or GHG-free content that each Party may select (such as 75% or 100% renewable content). In no event will the Authority’s power supply base product contain a lesser amount ofrenewable resources than the base product provided by SDG&E to its customers. Power supply options established by the Board will allow each Party the flexibility to achieve its CAP goals without impeding any other Party from doing the same.

6.6 Continuation and Transition of City of Solana Beach’s Existing CCA Program. The City of Solana Beach has been operating a CCA program within itsjurisdiction since 2018. The City of Solana Beach shall be permitted to continue to operate its existing CCA program until the Authority’s CCA Program commences service to customers within the jurisdiction ofthe City of Solana Beach. The transition ofCCA customers within the City of Solana Beach to the Authority’s CCA Program shall be implemented in accordance with the Authority’s implementation plan approved by the Board and certified by the CPUC and any policies and requirements established by the Board.

7. FINANCIAL PROVISIONS

7.1 Fiscal Year. The Authority’s fiscal year shall be 12 months commencing July 1 and ending June 30. The fiscal year may be changed by Board resolution.

7.2 Depository.
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7.2.1 All funds ofthe Authority shall be held in separate accounts in the name ofthe Authority and not commingled with funds of any Party or any other person or entity.

7.2.2 All funds ofthe Authority shall be strictly and separately accounted for, and regular reports shall be rendered of all receipts and disbursements, at least quarterly during the fiscal year. The books and records ofthe Authority shall be open to inspection and duplication by the Parties at all reasonable times. Annual financial statements shall be prepared in accordance with Generally Accepted Accounting Principles ofthe United States ofAmerica within 6 months ofthe close ofthe fiscal year. The Board shall contract with a certified public accountant to make an annual audit ofthe financial statements ofthe Authority, which shall be conducted in accordance with the requirements of Section 6505 ofthe Act.

7.2.3 All expenditures shall be made in accordance with the approved budget and upon the approval of any officer so authorized by the Board in accordance with its policies and procedures.

7.3 Budget and Recovery Costs.

7.3.1 Budget. The initial budget shall be approved by the Board. The Board may revise the budget from time to time as may be reasonably necessary to address contingencies and unexpected expenses. All subsequent budgets ofthe Authority shall be prepared and approved by the Board in accordance with its fiscal management policies that should include a deadline for approval.

7.3.2 Funding ofInitial Costs. The Initial Costs of establishing the Authority and implementing its CCA Program shall be divided equally among the Founding Members. In the event that the CCA Program becomes operational, these Initial Costs paid by the Founding Members shall be included in the customer charges for electric services to the extent permitted by law. The Authority may establish a reasonable time period over which such costs are recovered and reimbursed to the Founding Members. In the event that the CCA Program does not become operational, the Founding Members shall not be entitled to any reimbursement ofthe Initial Costs they have paid from the Authority or any Party.

7.3.3 CCA Feasibility and Governance Report Costs. In the event that the CCA Program becomes operational, any costs incurred by the Parties in preparing CCA Feasibility or Governance Reports in connection with establishing the Authority shall be included in the customer charges for electric services to the extent permitted by law. The Authority may establish a reasonable time period over which such costs are recovered and reimbursed to the Parties that incurred such costs. In the event that the 13045-0001 \2606345v1 .doc
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F CCA Program does not become operational, no Party shall be entitled to any reimbursement ofthese costs from the Authority or any Party.

7.3.4 Program Costs. The Parties intend that all costs incurred by the Authority that are directly or indirectly attributable to the provision of electric or other services under the CCA Program, including the establishment and maintenance ofvarious reserve and performance funds, shall be recovered through appropriate charges to CCA customers receiving such services.

7.3.5 No Requirement for Contributions or Payments. Parties are not required under this Agreement to make any financial contributions or payments to the Authority, and the Authority shall have no right to require such a contribution or payment unless expressly set forth herein (for example, as provided in Section 2.4.3, with respect to Additional Members, Section 7.3.2 with respect to Initial Costs and Section 8.1, with respect to Withdrawal), or except as otherwise required by law.

Notwithstanding the foregoing, a Party may voluntarily enter into an agreement with the Authority to provide the following:
a. contributions ofpublic funds for the purposes set forth in this Agreement;
b. advances ofpublic funds for the purposes set forth in this Agreement, such advances to be repaid as provided by such written agreement; or
c. its personnel, equipment or property in lieu of other contributions or advances.

No Party shall be required, by or for the benefit ofthe Authority, to adopt any local tax, assessment, fee or charge under any circumstances.

7.4 Accounts and Reports. The Treasurer shall establish and maintain such funds and accounts as may be required by good accounting practice or by any provision of any trust agreement entered into with respect to the proceeds of any bonds issued by the Authority. The books and records ofthe Authority in the hands of the Treasurer shall be open to inspection and duplication at all reasonable times by duly appointed representatives ofthe Parties. The Treasurer, within 180 days after the close of each fiscal year, shall give a complete written report of all financial activities for such fiscal year to the Parties. The Treasurer shall cooperate with all audits required by this Agreement.

7.5 Funds. The Treasurer shall receive, have custody of and/or disburse Authority funds in accordance with the laws applicable to public agencies and generally accepted accounting practices, and shall make the disbursements required by this Agreement in order to carry out any ofthe purposes ofthis Agreement. 13045-0001\2606345vl.doc
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7.6 Discretionary Revenues. The Board shall establish policies concerning the expenditure ofdiscretionary revenues. As determined by the Board in such policies, discretionary revenues may be used to (1) provide programs and develop projects ofthe Authority or (2) allow Parties to direct funds into qualified Authority programs and projects, or provide other ratepayer benefits. The Board shall endeavor to achieve a balanced distribution ofprogram and project benefits substantially commensurate with each Party’s energy load (“balanced distribution”). The Board shall conduct periodic audits no less than every two years in order to verify the balanced distribution ofprogram and project benefits and take any corrective action necessary to achieve or continue to maintain a balanced distribution.

7.7 Rate Related Programs. The Authority will maintain residential net energy metering and low-income rate discount programs.

8. WITHDRAWAL AND TERMINATION

8.1 Withdrawal

8.1.1 Withdrawal by Parties. Any Party may withdraw its membership in the Authority, effective as ofthe beginning ofthe Authority’s fiscal year, by giving no less than one year advance written notice ofits election to do so, which notice shall be given to the Authority and each Party. The Board, in its discretion, may approve a shorter notice period on a case by case basis.

In addition, a Party may immediately withdraw its membership in the Authority upon written notice to the Board at any time prior to the Authority filing its first year-ahead load forecast with the CPUC that included the Party’s load (anticipated to occur in April 2020) without any financial obligation other than its share ofInitial Costs that shall not be reimbursed and any costs directly related to the resulting amendment of the Implementation Plan. Withdrawal of a Party shall require an affirmative vote ofthe Party’s Governing Body.

8.1.2 Amendment. Notwithstanding Section 8.1.1 (Withdrawal by Parties) of this Agreement, a Party may withdraw its membership in the Authority upon approval and execution of an amendment to this Agreement provided that the requirements ofthis Section 8.1.2 are strictly followed. A Party shall be deemed to have withdrawn its membership in the Authority effective one year (or earlier ifapproved by the Board) after the Board approves an amendment to this Agreement ifthe Director representing such Party has provided notice to the other Directors immediately preceding the Board’s vote ofthe Party’s intention to withdraw its membership in the Authority, should the amendment be approved by the Board.

8.1.3 Continuing Liability; Further Assurances. A Party that withdraws its membership in the Authority may be subject to certain continuing 13045-000l\2606345v1 .doc
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F liabilities, as described in Section 8.5 (Continuing Liability; Refund) of this Agreement, including, but not limited to, power purchase agreements and other Authority contracts and operational obligations. The withdrawing Party and the Authority shall execute and deliver all further instruments and documents and take any further action that may be reasonably necessary, as determined by the Board, to effectuate the orderly withdrawal ofsuch Party from membership in the Authority. The Board shall also consider, pursuant to Section 3.2.12, adoption of a policy that allows a withdrawing Party to negotiate assignment to the Party of costs of electric power or other resources procured on behalf ofits customers by the Authority upon its withdrawal. In the implementation of this Section 8.1.3, the Parties intend, to the maximum extent possible, without compromising the viability of ongoing Authority operations, that any claims, demands, damages, or liabilities covered hereunder, be funded from the rates paid by CCA Program customers located within the service territory ofthe withdrawing Party, and not from the general fund ofthe withdrawing Party itself.

8.2 Termination of CCA Program. Nothing contained in Section 6 or elsewhere in this Agreement shall be construed to limit the discretion ofthe Authority to terminate the implementation or operation ofthe CCA Program at any time in accordance with any applicable requirements ofstate law.

8.3 Involuntary Termination. This Agreement may be terminated with respect to a Party for material non-compliance with provisions ofthis Agreement or Authority Documents upon a two-thirds vote ofthe entire Board excluding the vote ofthe Party subject to possible termination. Prior to any vote to terminate this Agreement with respect to a Party, written notice ofthe proposed termination and the reason(s) for such termination shall be delivered to the Party whose termination is proposed at least 30 days prior to the regular Board meeting at which such matter shall first be discussed as an agenda item. The written notice ofproposed termination shall specify the particular provisions ofthis Agreement or the Authority Documents that the Party has allegedly violated. The Party, subject to possible termination, shall have the opportunity at the next regular Board meeting to respond to any reasons and allegations that may be cited as a basis for termination prior to a vote regarding termination. A Party that has had its membership in the Authority terminated may be subject to certain continuing liabilities, as described in Section 8.5 (Continuing Liability; Refund) ofthis Agreement.

8.4 Mutual Termination. This Agreement may be terminated by mutual agreement of all the Parties; provided, however, the foregoing shall not be construed as limiting the rights of a Party to withdraw its membership in the Authority, and thus terminate this Agreement with respect to such withdrawing Party, as described in Section 8.1 (Withdrawal) ofthis Agreement. 13045-000l\2606345v1 .doc
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8.5 Continuing Liability; Refund. Upon a withdrawal or involuntary termination of a Party, the Party shall be responsible for any claims, demands, damages, or liabilities attributable to the Party through the effective date ofits withdrawal or involuntary termination, it being agreed that the Party shall not be responsible for any claims, demands, damages, or liabilities commencing or arising after the effective date ofthe Party’s withdrawal or involuntary termination.

Notwithstanding the foregoing or any other provisions ofthis Agreement, such Party also shall be liable to the Authority for (a) any damages, losses, or costs incurred by the Authority which result directly from the Party’s withdrawal or termination, including but not limited to costs arising from the resale of capacity, electricity, or any attribute thereofno longer needed to serve such Party’s load; and (b) any costs or obligations associated with the Party’s participation in any program in accordance with the program’s terms, provided such costs or obligations were incurred prior to the withdrawal ofthe Party. From and after the date a Party provides notice ofits withdrawal or is terminated, the Authority shall reasonably and in good faith seek to mitigate any costs and obligations to be incurred by the withdrawing or terminated Party under this Section through measures reasonable under the circumstances, provided that this obligation to mitigate does not impose any obligation on the Authority to transfer any cost or obligation directly attributable to the membership and withdrawal or termination ofthe withdrawing or terminated party to the ratepayers ofthe remaining members. Further, the liability ofthe withdrawing or terminated Party shall be based on actual costs or damages incurred by the Authority and shall not include any penalties or punitive charges imposed by the Authority. The Authority may withhold funds otherwise owing to the Party or may require the Party to deposit sufficient funds with the Authority, as reasonably determined by the Authority, to cover the Party’s liability for the costs described above. The withdrawing or terminated Party agrees to pay any such deposit determined by the Authority.

Any amount ofthe Party’s funds held on deposit with the Authority above that which is required to pay any liabilities or obligations shall be returned to the Party. In the implementation ofthis Section 8.5, the Parties intend, to the maximum extent possible, without compromising the viability of ongoing Authority operations, that any claims, demands, damages, or liabilities covered hereunder, be funded from the rates paid by CCA Program customers located within the service territory ofthe withdrawing Party, and not from the general fund ofthe withdrawing Party itself. The liability of a withdrawing Party under this Section shall be only to the Authority and not to any other Party.

8.6 Disposition ofAuthority Assets. Upon termination ofthis Agreement and dissolution ofthe Authority by all Parties, after payment of all obligations ofthe Authority, the Board may sell or liquidate Authority property and shall distribute any remaining assets to the Parties in proportion to the contributions made by the existing Parties. Any assets provided by a Party to the Authority shall remain the asset ofthat Party and shall not be subject to distribution under this section.

9. MISCELLANEOUS PROVISIONS
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20 Attachment 5
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DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F

9.1 Dispute Resolution. The Parties and the Authority shall make reasonable efforts to settle all disputes arising out of or in connection with this Agreement. Before exercising any remedy provided by law, a Party or the Parties and the Authority shall engage in nonbinding mediation in the manner agreed upon by the Party or Parties and the Authority. The Parties agree that each Party may specifically enforce this section. In the event that nonbinding mediation is not initiated or does not result in the settlement of a dispute within 60 days after the demand for mediation is made, any Party and the Authority may pursue any remedies provided by law.

9.2 Liability of Directors, Officers, and Employees. The Directors, officers, and employees ofthe Authority shall use ordinary care and reasonable diligence in the exercise oftheir powers and in the performance oftheir duties pursuant to this Agreement. No current or former Director, officer, or employee will be responsible for any act or omission by another Director, officer, or employee.

The Authority shall defend, indemnify and hold harmless the individual current and former Directors, officers, and employees for any acts or omissions in the scope oftheir employment or duties in the manner provided by Government Code Section 995 et seq. Nothing in this section shall be construed to limit the defenses available under the law, to the Parties, the Authority, or its Directors, officers, or employees. In addition, pursuant to the Act, no Director shall be personally liable on the Authority’s bonds or be subject to any personal liability or accountability by reason ofthe issuance ofbonds.

9.3 Insurance and Indemnification of Parties. The Authority shall acquire such insurance coverage as is necessary to protect the interests ofthe Authority and the Parties. The Authority shall defend, indemnify and hold harmless the Parties and each oftheir respective governing board members, officers, agents and employees, from any and all claims, losses, damages, deductibles or self-insured retentions, costs, fines, penalties, injuries and liabilities of every kind arising directly or indirectly from the conduct, activities, operations, acts, errors, omissions or negligence ofthe Authority or its officers, employees, agents, contractors, licensees or volunteers.

9.4 No Third Party Beneficiaries. The provisions ofthis Agreement are for the sole benefit ofthe Parties and the Authority and not for the benefit of any other person or entity. No third party beneficiary shall be created by or arise from the provisions ofthis Agreement.

9.5 Notices. Any notice required or permitted to be made hereunder shall be in writing and shall be delivered in the manner prescribed herein at the principal place ofbusiness of each Party. The Parties may give notice by (1) personal delivery; (2) e-mail; (3) U.S. Mail, first class postage prepaid, or a faster delivery method; or (3) by any other method deemed appropriate by the Board.

Upon providing written notice to all Parties, any Party may change the designated address or e-mail for receiving notice.
13045-000l\2606345v1 .doc
21 Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 261
DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F All written notices or correspondence sent in the described manner will be deemed given to a party on whichever date occurs earliest: (1) the date of personal delivery; (2) the third business day following deposit in the U.S. mail, when sent by “first class” mail; or (3) the date oftransmission, when sent by email or facsimile.

9.6 Successors. This Agreement shall be binding upon and shall inure to the benefit ofthe successors of each Party.

9.7 Assignment. Except as otherwise expressly provided in this Agreement, the rights and duties ofthe Parties may not be assigned or delegated without the advance written consent of all ofthe other Parties, and any attempt to assign or delegate such rights or duties in contravention ofthis section shall be null and void. This Agreement shall inure to the benefit of, and be binding upon, the approved assigns ofthe Parties. This section does not prohibit a Party from entering into an independent agreement with another agency, person, or entity regarding the financing ofthat Party’s contributions to the Authority, or the disposition ofthe proceeds which that Party receives under this Agreement, so long as such independent agreement does not affect, or purport to affect, the rights and duties ofthe Authority or the Parties under this Agreement.

9.8 Amendment. This Agreement may be amended by a written amendment approved by the Board in accordance with the Special Voting requirements of Section 4.12.

9.9 Severability. If any one or more ofthe terms, provisions, promises, covenants, or conditions ofthis Agreement were adjudged invalid or void by a court of competentjurisdiction, each and all ofthe remaining terms, provisions, promises, covenants, and conditions ofthis Agreement shall not be affected thereby and shall remain in full force and effect to the maximum extent permitted by law.

9.10 Governing Law. This Agreement is made and to be performed in the State of California, and as such California substantive and procedural law shall apply.

9.11 Headings. The section headings herein are for convenience only and are not to be construed as modifying or governing the language ofthis Agreement.

9.12 Counterparts. This Agreement may be executed in any number of counterparts, and upon execution by all Parties, each executed counterpart shall have the same force and effect as an original instrument and as if all Parties had signed the same instrument. Any signature page ofthis Agreement may be detached from any counterpart ofthis Agreement without impairing the legal effect of any signatures thereon and may be attached to another counterpart ofthis Agreement identical in form hereto but having attached to it one or more signature pages.

The Parties hereto have executed this Joint Powers Agreement establishing the Clean Energy Alliance.
22 13045-0001\2606345vl.doc
Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 262
DATE:

ATTEST:

By:
£^_City Clerk
APPROVED AS TO FORM:
-23-
Oct. 8, 2019 Item #5 Page 32 of 42
Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 263
CITY OF t)^l
By:
. Huth, City Manager
DATE: Il
APPROVED AS TO FORM:
-23-
Oct. 8, 2019 Item #5 Page 33 of 42
Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 264
<«?« IA
DATE: //•“ 4~'~
ATTEST:

APPROVED AS TO FORM:
ttorney
*
’'rXH ^ri *y *f
ity Clerk
By:

By:
-23-
Oct. 8, 2019 Item #5 Page 34 of 42
Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 265

CLEAN ENERGY ALLIANCE JOINT POWERS AGREEMENT

CITY OF ESCONDIDO
Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 266
DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F

CLEAN ENERGY ALLIANCE JOINT POWERS AGREEMENT
',City Manager

CITYOMANMARCOS
By:

DATE: V13/2022
ATTEScPcu8|9ned by:

By: L —E1A8a91A83CA^5Q...--------------------------------------------- Phillip scol lick city Clerk
By:L
APWW’flS TO FORM:
■20127CB06AQA4C4...------------------------------------------------------- Helen Holmes pqgftyAttorney
Attachment 5
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February 17, 2026 City of Coronado Page 267
DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F Exhibit A: Definitions
“AB 117” means Assembly Bill 117 (Stat. 2002, Ch. 838, codified at Public Utilities Code Section 366.2), which created Community Choice Aggregation. “Act” means the Joint Exercise ofPowers Act ofthe State ofCalifornia (Chapter 5, Division 7, Title 1 ofthe Government Code commencing with Section 6500). “Agreement” means this Joint Powers Agreement.
“Authority” means the Clean Energy Alliance.
“Authority Document(s)” means document(s) duly adopted by the Board by resolution or motion implementing the powers, functions and activities ofthe Authority, including but not limited to the Operating Policies and Procedures, the annual budget, and plans and policies.
“Board” means the Board of Directors ofthe Authority.
“Community Choice Aggregation” or “CCA” means an electric service option available to cities, counties, and other public agencies pursuant to Public Utilities Code Section 366.2.
“CCA Program” means the Authority’s Community Choice Aggregation program established, conducted and operated under Public Utilities Code Section 366.2. “Days” shall mean calendar days unless otherwise specified by this Agreement. “Director” means a member ofthe Board representing a Party appointed in accordance with Sections 4.1 (Board ofDirectors) and 4.2 (Appointment and Removal ofDirectors) ofthis Agreement.
“Effective Date” means the date on which the Agreement shall become effective and the Authority shall exist as a separate public agency, as further described in Section 2.1 (Effective Date and Term) ofthis Agreement. “Founding Member” means any jurisdiction that becomes a member ofthe Authority before October 1, 2020, as identified in Exhibit B.
“Governing Body” means for any city, its City Council; and for any other public agency, the equivalent policy making body that exercises ultimate decision-making authority over such agency.
“Initial Costs” means reasonable and necessary implementation costs advanced by the Founding Members in support ofthe formation ofthe Authority and approved by the Board for reimbursement, which are (a) directly related to the establishment ofthe 13045-0001\2606345V1 .doc
23 Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 268
DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F Authority and its CCA program, and (b) incurred by the Authority or its Members relating to the initial operation ofthe Authority, such as the hiring ofthe executive and operations staff, any required accounting, administrative, technical and legal services in support ofthe Authority’s initial formation activities or in support ofthe negotiation, preparation and approval ofpower purchase agreements, and activities associated with drafting and obtaining approval ofthe Authority’s implementation plan. Initial Costs do not include costs associated with the investigation ofthe CCA model, attendance at routine planning meetings, or a Party’s pre-formation reports related to their decision to pursue CCA orjoin the Authority. Initial costs also do not include the costs incurred by the City of Solana Beach relating to the termination ofits CCA program. The Authority Board shall determine the repayment timing and termination date for the Initial Costs. “Investor Owned Utilities” means a privately-owned electric utility whose stock is publicly traded and is subject to CPUC regulation.
“Parties” means, collectively, the signatories to this Agreement that have satisfied the conditions as defined above for “Founding Members” or in Section 2.4 (Addition of Parties) ofthis Agreement, such that they are considered members ofthe Authority. “Party” means, singularly, a signatory to this Agreement that has satisfied the conditions as defined above for “Founding Members” or in Section 2.4 (Addition ofParties) of this Agreement, such that it is considered a member ofthe Authority. 13045-0001\2606345v 1 .doc
24 Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 269
DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F Exhibit B: List ofFounding Members and Parties added on or after October 1,2020, per Section 2.4
Any public agency that becomes a member by October 1, 2020 City of Carlsbad
City of Del Mar
City of Solana Beach
Any public agency that becomes a member after October 1, 2020 City ofEscondido
City of San Marcos
13045-000l\2606345v1 .doc
1 Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 270
DocuSign Envelope ID: B6417318-68FD-480D-8ADD-7A197A78682F AMENDMENT NO. 1 TO CLEAN ENERGY ALLIANCE JOINT POWERS

AGREEMENT
This Amendment No. 1 to the Clean Energy Alliance Joint Powers Agreement, dated November 4, 2019, by and among the Parties (hereinafter referred to as the “Agreement”) amends the Agreement as follows:

1. Section 5.1 Elected and Appointed Officers is hereby amended to amend the first sentence ofthis section to read:
“For each calendar year, the Board shall elect a Chair and Vice Chair from among the Directors and for each fiscal year shall appoint a Secretary and a Treasurer as provided in Government Code Section 6505.5.

2. Section 5.2 Chair and Vice Chair is hereby amended to amend the first sentence ofthis section to read:
“For each calendar year, the Board shall elect a Chair and Vice Chair from among the Directors.”

3. Except as specifically amended above, all other provisions ofthe Agreement shall remain in full force and effect.

This proposed Amendment No. 1 was presented to the Board ofDirectors ofthe Clean Energy Alliance on July 29, 2021, and was adopted as amended by the Board at its September 30,2021, meeting per Resolution 2021-012, attached hereto.
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February 17, 2026 City of Coronado Page 271
1 CLEAN ENERGY ALLIANCE
RESOLUTION NO. 2021-012

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CLEAN ENERGY ALLIANCE APPROVING AMENDMENT NO. 1 TO THE JOINT POWERS

AUTHORITY AGREEMENT REGARDING TERM OF CHAIR AND VICE CHAIR

WHEREAS, the Clean Energy Alliance (CEA) is a joint powers agency, formed in November 2019, by the founding member cities of Carlsbad, Del Mar, and Solana Beach; and WHEREAS, Sections 5.1 and 5.2 of the Clean Energy Alliance Joint Powers Agreement (JPA) provides that for each fiscal year, the Board shall elect a Chair and Vice Chair from among the Directors; and
WHEREAS, the calendar year aligns the term of Chair and Vice Chair to coincide with the term of elected office for each Board Director; and
WHEREAS, proposed Amendment No. 1 to the JPA was presented to the Board at its July 29, 2021, meeting for review and the Board directed that this amendment be presented to the Board for adoption at its September 30, 2021, meeting; and WHEREAS, the member cities were provided a minimum 30-days advance written notice of the proposed amendment, including a copy of the Amendment No. 1.

NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Clean Energy Alliance, as follows:

Section 1. The Board of Directors of the Clean Energy Alliance hereby adopts Amendment No. 1 to the Clean Energy Alliance Joint Powers Agreement amending Sections 5.1 and 5.2 as follows:
“Section 5.1. Elected and Appointed Officers. For each fiscal calendar year, the Board shall elect a Chair and Vice Chair from among the Directors and for each fiscal year shall appoint a Secretary and Treasurer as provided in Government Code section 6505.5. “ “Section 5.2. Chair and Vice Chair. For each fiscal calendar year, the Board shall elect a Chair and Vice Chair from among the Directors. “
DocuSign Envelope ID: 56D38309-50D4-488D-B04D-AAD0228E5BCF Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 272
2 The foregoing Resolution was passed and adopted this 30th day of September 2021, by the following vote:

AYES: Druker, Bhat-Patel, Becker
NOES: None
ABSENT: None

APPROVED:
________________________________________
Kristi Becker, Chair
ATTEST:
_______________________________
Sheila Cobian, Interim Board Secretary
DocuSign Envelope ID: 56D38309-50D4-488D-B04D-AAD0228E5BCF Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 273
CEA NEM Terms & Conditions
Adopted December 2020
1 CLEAN ENERGY ALLIANCE

NET ENERGY METERING

TERMS AND CONDITIONS OF SERVICE
A. PURPOSE
The Purpose of the Net Energy Metering (NEM) Program terms & conditions (T&C) is to provide a process for how Net Energy Metering (commonly referred to as rooftop solar) customers are enrolled with Clean Energy Alliance (CEA) and how the program is administered.

B. APPLICABILITY
Customers enrolled in San Diego Gas & Electric’s (SDG&E) Net Energy Metering Program (SDG&E NEM) are automatically enrolled in CEA’s NEM Program. The Program is applicable for all NEM customers who have Renewable Generation Facilities such as rooftop solar. The facility must be eligible under SDG&E’s Schedule NEM – Net Energy Metering or similar tariff option(s) focused on NEM, which may be amended or replaced by SDG&E from time to time. Each customer’s eligible Renewable Generating Facility must fall within the capacity limits described in SDG&E’s Schedule NEM and must be located on the customer’s owned, leased, or rented premises, must be interconnected and operated in parallel with SDG&E’s transmission and distribution systems, and must be intended primarily to offset part or all of the customer’s own electrical requirements.

This rate schedule will be available to customers that provide SDG&E with a completed SDG&E NEM Application and comply with all SDG&E NEM requirements as described in SDG&E’s Schedule NEM. This includes, but not limited to, customers served by NEM-V (Virtual Net Energy Metering), VNM-A (Virtual Net Energy Metering for Multifamily Affordable Housing), VNEM-SOMAH (Virtual Net Energy Metering - Solar on Multifamily Affordable Housing) and Multiple Tariff facilities as described by SDG&E’s Schedule NEM.

C. TERRITORY
Applicable in the CEA service area.

D. RATES
All rates charged under this schedule will be in accordance with the customer’s otherwise applicable CEA rate schedule (OAS). A customer served under this schedule is responsible for all charges from its OAS including monthly minimum charges, customer charges, meter charges, facilities charges, demand charges and surcharges, and all other charges owed to CEA or SDG&E. Charges for energy (kWh) supplied by CEA will be based on the net metered usage in accordance with this tariff.

E. BILLING

1. For a customer with Non-Time of Use (TOU) Rates. If the customer is a “Net Consumer,” having overall positive usage during a specific billing cycle, the customer will be billed in Attachment D Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 274
CEA NEM Terms & Conditions
Adopted December 2020
2 accordance with the customer’s OAS. If the customer is a “Net Generator,” having overall negative usage during a specific billing cycle, any net energy production shall be valued in consideration of the customer’s OAS. The calculated value of any net energy production shall be credited to the customer according to the OAS.

2. For a customer with TOU Rates. If the customer is a Net Consumer during any discrete TOU period reflected within a specific billing cycle, the net kWh consumed during such TOU period shall be billed in accordance with applicable TOU period-specific rates / charges, as described in the customer’s OAS. If the customer is a Net Generator during any discrete TOU period reflected within a specific billing cycle, any net energy production shall be valued in consideration of the customer’s OAS. The calculated value of such net energy production shall be credited to the customer according to the OAS.

3. CEA True-Up & Cash-Out Processes.
a. True-Up. At the end of each NEM customer’s 12-month relevant period, CEA will determine whether or not each customer has produced net surplus energy, as measured in kWh, over the most recent 12 billing cycles, or the period of time extending from the customer’s commencement of participation in CEA’s NEM program through the end of their relevant period, whichever is shorter (the “TrueUp Period”). If the customer has not produced net surplus NEM energy, as measured in kWh, during the True-Up Period, all NEM credits, if any, generated through participation in CEA’s NEM program in excess of currently applicable CEA charges shall be set to zero and any remaining balance will be due and payable.

However, if a customer has produced net surplus NEM energy, as measured in kWh, resulting in a credit balance in excess of currently applicable CEA charges, then CEA shall credit such customer a Net Surplus Compensation (NSC) amount equal to the CEA NSC Rate per kWh, as defined in the CEA Rate Schedule, multiplied by the quantity of net surplus NEM energy produced by the customer during the True-Up Period, consistent with CEA’s Cash-Out practice. All NEM accounts will be reset to zero kWh upon True-up.
b. Cash-Out. At the end of each customer’s relevant period, any current customer with a NSC Payment equal to or greater than $100, as determined during the applicable True-Up process, will be sent a direct payment by check. NSC payments less than $100 will be rolled over into the next relevant period and used to offset future charges.
c. Aggregated NEM. Pursuant to California Public Utilities Commission Section 2827(h)(4)(B), aggregated NEM customers are “permanently ineligible to receive net surplus electricity compensation.” Therefore, any excess accrued credits over the course of a year under an aggregated NEM account are ineligible for CEA’s Cash-Out as described in Section 5. All other NEM rules apply to aggregated NEM accounts.

Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 275
CEA NEM Terms & Conditions
Adopted December 2020
3 F. ACCOUNT CLOSURES
Customers who close their electric account through SDG&E or move outside of the CEA service area prior to the end of their relevant period and have produced net surplus NEM energy, as measured in kWh, resulting in a credit balance in excess of currently applicable CEA charges, shall receive a direct payment equal to the rate per kWh, as defined in the CEA Rate Schedule, multiplied by the net surplus NEM energy.

CEA reserves the right to work with customers on a case-by-case basis to transfer NEM credits.

G. SDG&E NEM SERVICES
Customers are subject to the conditions and billing procedures of SDG&E for their nongeneration services, as described in SDG&E’s applicable NEM tariffs and options addressing NEM service. Customers should be advised that while CEA may settle out balances for generation on a monthly basis, SDG&E will continue to assess charges for delivery, transmission and other services. Customers are encouraged to review SDG&E’s most up-todate NEM tariffs, which are available at www.sdge.com.

H. RETURN TO SDG&E BUNDLED SERVICE
Customers with NEM service may opt-out and return to SDG&E bundled service at any time, pursuant to SDG&E’s Rule 27. CEA will perform a true-up of their account (as described above), at the time of return to SDG&E bundled service, and customers will be subject to SDG&E’s then current rates, terms and conditions of service. For details, please visit www.sdge.com.

Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 276
CEA Solar Impact Terms & Conditions
Adopted October 2023
1 CLEAN ENERGY ALLIANCE

SOLAR IMPACT

TERMS AND CONDITIONS OF SERVICE
A. PURPOSE
The Purpose of the Clean Energy Alliance (CEA) Solar Impact (SI) Program Terms & Conditions (T&C) are to provide a process for how customers that install rooftop solar after April 14, 2023, or for customers whose Net Energy Metering (NEM) 1.0 or NEM 2.0 legacy period ends, are enrolled in CEA’s Solar Impact and how the program is administered.

B. APPLICABILITY
Customers that submit an interconnection application with San Diego Gas & Electric (SDG&E) after April 14, 2023, will be enrolled in SDG&E’s Solar Billing Plan (SBP) and are automatically enrolled in CEA’s SI Program. The Program is applicable for all SBP customers who have Renewable Generation Facilities such as rooftop solar. The facility must be eligible under SDG&E’s Schedule NBT – Net Billing Tariff – or similar tariff option(s), which may be amended or replaced by SDG&E from time to time. Each customer’s eligible Renewable Generating Facility must fall within the capacity limits described in SDG&E’s Schedule NBT, must be located on the customer’s owned, leased, or rented premises, must be interconnected and operated in parallel with SDG&E’s transmission and distribution systems, and must be intended primarily to offset part or all of the customer’s own electrical requirements.

This rate schedule will be available to customers that provide SDG&E with a completed SDG&E NBT Application and comply with all SDG&E NBT requirements as described in SDG&E’s Schedule NBT.

C. TERRITORY
Applicable in the CEA service area.

Charges for energy (kWh) supplied by CEA will be based on the net metered usage in accordance with this tariff.

E. BILLING
Attachment E Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 277
CEA Solar Impact Terms & Conditions
Adopted October 2023
2 1. SI billing is based on the time-of-use pricing structure, with customers paying the applicable rate for energy used (imported) and receiving a credit for energy sent back to the grid (exported). The per kWh credit for energy exported to the grid will be based on the value of the energy at the time the energy is exported. These values are based on the same export credit pricing as paid by SDG&E.
a. Solar Impact Premium. In addition to the export credit based on SDG&E’s pricing, SI pays customers an extra $0.01 per kWh for energy exported to the grid.

2. CEA True-Up & Cash-Out Processes.
a. Monthly True-Up. At the end of each monthly billing period, the customer’s charges and credits will be calculated. If there is a charge due, the charge will be due and payable on the SDG&E bill. If there is a credit balance, the credit will roll to the next month to be netted against any charges accrued.
b. Annual True-Up. At the end of the customer’s 12-month relevant period, the account goes through an annual true-up process. If there are any net credits remaining, the credits are forfeited, with the next 12-month relevant period starting with a zeroaccount balance. CEA will review the customer’s total energy used based on kWh and energy produced by the system, based on kWh. If the customer was a net generator, meaning the system produced more electricity than was used during the 12-month relevant period, then CEA shall calculate Net Surplus Compensation (NSC) based on CEA’s current NSC rate, as defined in the current CEA Rate Schedule. NSC is calculated by multiplying the kWh of net energy exported multiplied by the NSC Rate. c. Cash-Out. At the end of each customer’s relevant period, any current customer with a NSC Payment equal to or greater than $100, will be sent a direct payment by check.

NSC payments less than $100 will be rolled over into the next relevant period and accumulated until the total NSC reaches $100.

F. ACCOUNT CLOSURES
Customers who close their electric account through SDG&E or move outside of the CEA service area prior to the end of their relevant period and have produced net surplus NEM energy, as measured in kWh, resulting in a credit balance in excess of currently applicable CEA charges, shall receive a direct payment equal to the NSC rate per kWh, as defined in the CEA Rate Schedule, multiplied by the net surplus energy.

Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 278
CEA Solar Impact Terms & Conditions
Adopted October 2023
3 G. SDG&E NBT SERVICES
Customers are subject to the conditions and billing procedures of SDG&E for their nongeneration services, as described in SDG&E’s applicable NBT tariffs and options addressing NBT service. Customers should be advised that while CEA may settle out balances for generation on a monthly basis, SDG&E will continue to assess charges for delivery, transmission and other services. Customers are encouraged to review SDG&E’s most up-todate NBT program information, which can be found here:
https://www.sdge.com/solar/solar-billing-plan#plan
H. RETURN TO SDG&E BUNDLED SERVICE
Customers may opt-out and return to SDG&E bundled service at any time, pursuant to SDG&E’s Rule 27. CEA will perform a true-up of their account (as described above), at the time of the customer’s return to SDG&E bundled service, and customers will be subject to SDG&E’s then current rates, terms and conditions of service. For details, please visit www.sdge.com.

Attachment 5
Item 8.b
February 17, 2026 City of Coronado Page 279

SDG&E - SDCP
Joint Rate Comparisons
As a part of our shared commitment to provide energy options to our customers, San Diego Community Power (SDCP) and San Diego Gas & Electric® (SDG&E®) have jointly created a comparison of our typical electric rates, average monthly bills and electric generation power sources. SDG&E implemented adjustments to its electric rates effective June 1, 2025. SDCP updated its electric rates on February 1, 2025. The California Public Utilities Commission requires that this comparison be posted online within 60 days of each rate change.

To select the correct comparison to review, find the rate plan that applies to you in the chart below. Then scroll down to find your comparison.

TOU-ELEC
DM | DS | DT | DT-RV
EVTOU | EVTOU2 | EVTOU5
Small Commercial
TOU-A (Secondary) | TOU-A (Primary)
TOUA2
TOUA3
TOU-M
ATC
Medium/Large Commercial
AL-TOU (Secondary) | AL-TOU (Primary)
DGR (Secondary) I DGR (Primary)
OL-TOU
EV-HP
Agriculture PAT-1
TOU-PA | TOUPA2 I TOU-PA3
Lighting
LS1 | LS2 | LS3
OL1 | OL2
DWL
Attachment 6
Item 8.b
February 17, 2026 City of Coronado Page 280
SDG&E rates effective June 1, 2025 | SDCP rates effective February 1, 2025 Need help finding your rate?
Your rate can be found in My Energy Center – www.myenergycenter.com - under the “Billing” > “Pricing Plan” tab. It is also listed on your SDG&E bill under “Detail of Current Charges”, directly under Electric Service.

Definition of Terms
Power Source is the mix of energy resources for generating electricity. This makes up the electric power generation mix that is purchased or generated by your provider and delivered to you. Your electric power may be a mix of renewable energy, natural gas and other sources.

Generation Rate is the cost of generating and/or purchasing electricity to power your home or business. The generation rate varies based on your energy provider and the resources included in your energy provider’s generation power source.

SDG&E Delivery Rate is SDG&E’s charge to deliver electricity to your home or business. The electric delivery rate may vary depending on your rate and electricity use, however, it is charged equally to customers regardless of who provides their electric generation.

Power Charge Indifference Adjustment (PCIA) is a charge to ensure that both SDG&E customers and those who have left SDG&E service to purchase electricity from other providers pay the above market costs for generation resources that were procured by SDG&E on their behalf. “Above market” refers to the difference between what the utility pays for electric generation and current market prices for the sale of those resources.

Franchise Fees (FF) are the surcharges applied to electricity transported over SDG&E systems that are constructed in public streets and highways. SDG&E collects the surcharge from customers and remits them to the appropriate municipality. This is charged equally to customers regardless of who provides their electric generation.

The unbundled Renewable Energy Credits (RECs) retired in association with SDCP’s portfolio were produced by an eligible renewable wind resource. The resource was built before the state’s location-based renewable energy law took effect. SDCP received these RECs from SDG&E via a state-approved allocation process. Thus, the unbundled RECs are not reflected in the SDCP renewable %.

RESIDENTIAL
The residential rate comparisons exclude the California Climate Credit from the State of California which is issued twice a year to residential customers. This credit is applied equally to customers regardless of who provides their electric generation. For more information visit www.cpuc.ca.gov/climatecredit
Attachment 6
Item 8.b
February 17, 2026 City of Coronado Page 281
SDG&E rates effective June 1, 2025 | SDCP rates effective February 1, 2025 Standard – DR-Residential
Residential: DR SDG&E