HomeMy WebLinkAbout2022-02-24; Clean Energy Alliance JPA; MinutesDocuSign Envelope ID: 477486A5-9AD5-4C9F-9442-334CC3A5CD9B
Clean Energy Alliance -Board of Directors
Regular Meeting Minutes
February 24, 2022, 2:00 p.m.
Virtual Meeting
Teleconference Locations Per Government Code Section 54953(3) {Assembly Bill 361)
CALL TO ORDER: Cha ir Becker called to order the regular meeting of the Clean Energy Alliance at
2:02 p.m.
ROLL CALL: Vice Chair Druker, Board M embers: Inscoe, Musgrove, Acost a, Chair Becker
FLAG SALUTE: Vice Chair Druker led the flag salute.
BOARD COMMENTS & ANNOUNCEMENTS -None
PRESENTATIONS -Report on February 17, 2022, Community Advisory Committee (CAC) Meeting -Alternat e
Board Member/CAC Chair Worden
CAC Chair Worden commented that the full committee, CEA CEO Ba rbara Boswell, and represent ation from
Tripepi Smith & Associates attended the Community Advisory Committee meeting, and that the CAC reviewed
the CEA website in detail and generated a number of recommendations for enhancement of the websit e. In
addition, Chair Worden commented that the CAC is looking forward to additional CAC representation from San
Marcos and Escondido.
PUBLIC COMMENT -None
APPROVAL OF MINUTES
Minutes of the Special Meeting -Dece mber 17, 2021
Minutes of the Regular M eeting -December 30, 2021
Motion by Chair Becker, second by Vice Chair Druker, to approve the minutes of the special meeting
held December 17, 2021, and the regular meeting held December 30, 2021, as submitted.
Motion carried unanimously, 5/0.
Consent Calendar
Item 1: Reconsideration of the Circumstances of the COVID-19 State of Emergency to Determine
Whether the Legislative Bodies of Clean Energy Alliance will Continue to Hold Meetings Via
Teleconferencing and Making Findings Pursuant to Government Code Section 54943(e)
RECOMMENDATION
To continue meetings by teleconferencing pursuant to Government Code Section 54943(e),
finding that: (1) the Board has reconsidered the circumstances of the state of emergency
created by the COVID-19 pandemic; and (2) the state of emergency continues to directly impact
the ability of the members to meet safely in person.
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Item 2: Clean Energy Alliance Treasurer's Report
RECOMMENDATION
Receive and file Clea n Energy Alliance Treasurer's Report for January 2022 activity.
Motion by Vice Chair Druker, second by Board Member Inscoe to approve the consent calendar.
Motion carried unanimously, 5/0.
New Business
Item 3: Clean Energy Alliance Chief Executive Officer Operational, Administrative and Regulatory
Affairs Update
RECOMMENDATION
1) Receive and file Community Choice Aggregation Update Report from Chief Executive Officer.
2) Receive and file Community Choice Aggregation Regulatory Affairs Report from Special
Counsel.
CEO Barbara Boswell presented the Board with highlights from the CEO Update Report including
the expansion assessment currently underway for the Cities of Oceanside, Vista, and San
Clemente with target for service in 2024. Assuming positive impact reports, consideration to
join CEA by the prospective new members will take place May/June, with CEA Board approval
and direction to prepare the Implementation Plan Amendment scheduled for July 2022. The
Implementation Plan Amendment would be filed with the CPUC by December 31, 2022. CEO
Boswell commented regarding the return to in-person Board meetings and items to be
considered including geographic proximity, broadcast capabilities, and meeting space. CEO
Boswell commented regarding the opening of t he Community Advisory Committee Applications
for the cities of Escondido and San Marcos directing interested persons that live or own a
business in those cities to visit the CEA website at https://thecleanenergyalliance.org for more
information and application.
Board questions and comments included inquiry regarding the timing for the CEA potential
expansion cities and City of Oceanside agreement to join CEA, and support for rotating in-person
meetings. CEO Boswell indicated that that each city is fully aware of the anticipated schedule
and in agreement to the timing of the actions needed to join CEA and that the City of Oceanside
City Council would consider joining CEA if the other corridor cities joined.
Regulatory Counsel Ty Tosdal introduced Tosdal APC Associate Attorneys Samir Hafez, and
Chasity Hendren, and updated the Board on regulatory proceedings including Financia l Security
Requirements (FSRs) commenting that they are in place to protect against mass involuntary
return of CCA customers to the Utility. Existing rules requ ire 6-month advance procurements of
which costs have been heavily criticized for outdated inputs, and improper offsets. CPUC
proceedings are underway and increase to FSRs are likely. In addition, an Advice Letter (AL) was
submitted by SDG&E seeking approval for Renewables Portfolio Standard (RPS) transactions
with SDCP and CEA. A protest was filed by the Public Advocates Office (Cal Advocates) stating
that the CEA agreement did not appear to meet the 10-year RPS requirement and Direct Access
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(DA) parties are arguing the transaction was premature due to upcoming RPS voluntary
allocation and market offer (VAMO) implementation. Mr. Tosdal explained that as part of the
Energy Resource Recovery Account (ERRA) process the Investor-Owned Utilities (IOUs) will
finalize Community Choice Aggregation (CCAs) potential VAMO shares based on vintaged,
annual load forecasts. CCAs will inform IOUs of their interest in shares and IOUs and CCAs to
include proposed Voluntary Allocations in 2022 RPS Plans and the CPUC is expected to issue a
decision on RPS Plans and address VAMO in December 2022.
Vice Chair Druker inquired whether the VAMO would reduce exit fees and Special Counsel
Tosdal explained that it would not, but it does provide access to the resources within the utility
portfolio which allows for purchase of resources at a market rate.
Lastly, Mr. Tosdal reported on the Net Energy Metering (NEM) 3.0 proceeding commenting that
an email was received from an Administrative Law Judge indicating that the proposed decision
will not appear on the CPUC voting meeting agenda until further notice stating the CPUC has
reassigned Rulemaking 20-08-020 to President Alice Reynolds, who requested additional time to
analyze the record and consider revisions and to ensure al five Commissioners participate in oral
arguments.
CEA Board received and filed the report.
Item 4: Presentation on Power Charge Indifference Adjustment
RECOMMENDATION
Receive presentation on the Power Charge Indifference Adjustment.
CEO Barbara Boswell introduced the item and Keyes and Fox LLP Attorneys Jacob Schlesinger
and Lee Ewing, who gave a presentation of the Power Charge Indifference Adjustment (PCIA).
Mr. Ewing gave an overview of the PCIA commenting that the law requires remaining SDG&E
customers to be left economically indifferent to CEA's customers leaving SDG&E's service and
that the PCIA is the exit fee that is intended to ensure such indifference and explained how the
PCIA is calculated and brought before the CPUC as part of the Annual ERRA Compliance
Application. Mr. Ewing and Mr. Schlesinger commented on last year's ERRA Proceedings stating
that SDG&E used a sales forecast that ignored the formation of CCAs, therefore the proposed
rate that SDG&E was going to charge their customers was a lot lower than what they should
have been making those rates look more attractive than CEA's at the time of formation and
commented on the upcoming proceedings and possible challenges.
Board Member Musgrove inquired regarding the exit fees paid to SDG&E, where the power is
going and if CEA has the first right to that power at the negotiated rate. Mr. Ewing explained
that the value of the power gets assumed in the market value and should be used to reduce the
PCIA to the extent that SDG&E is recovering revenue. Excess Power could be sold into the
California Independent System Operator (CAISO) market and that revenue should be reducing
the PCIA.
Special Counsel Tosdal commented that the VAMO process allows for access to the power that
CEA is paying for part of through PCIA.
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Board Member Acosta commented regarding efforts and advocacy to ensure transparency and
fairness with ERRA proceedings.
CEA Board received and filed report.
Item 5: Consider Approval of Fiscal Year 2021/2022 Midyear Budget Adjustment
RECOMMENDATION
Approve Fiscal Year 2021/2022 Midyear Budget Adjustment.
CEO Barbara Boswell presented the Midyear Budget Adjustment commenting that the
development of the FY 2021/2022 Budget took place prior to serving customers and now are
ready to adj ust based on the first six months of service to customers and went over the details
of the recommended adjustment.
Motion by Chair Becker, second by Board Member Inscoe, to approve the recommended budget adjustment.
Motion carried unanimously, 5/0.
Item 6: Consider Board Subcommittee to Review Chief Executive Officer Contract and Salary
RECOMMENDATION
Appoint Board Subcommittee to Review Ch ief Executive Officer Contract and Salary.
Board consideration of appointment of Chair and Vice Chair as Subcommittee to review CEO contract and salary.
Motion by Chair Becker, second by Board Member Musgrove, to approve the appointment of Chair Becker and
Vice Chair Druker as the Subcommittee to review the CEO contract and salary.
Motion carried unanimously, 5/0.
Addressing the Board was Rob Howard regarding public comment and opt out customers.
BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS: None
ADJOURN: Chair Becker adjourned the meeting at 3:19 p.m.
Susan Caputo, MMC
Interim Board Clerk