Andrew Braeger

The finance committee meeting covered the first quarter budget-to-actual report, which indicated a positive net position addition of $7.4 million, although revenues were below budget due to cooler September weather resulting in lower electricity use and power prices. The committee also discussed the process for securing a new banking agreement to replace the current JP Morgan agreement expiring on March 31, 2024. Four criteria for selecting a new bank were outlined: high investment grade, capacity for a $160 million line of credit, experience with Community Choice Aggregators (CCAs), and appetite for more business. The committee plans to solicit offers and bring a recommendation in early January, with final approval targeted for March. Discussion also touched upon comparisons of September weather and spot market expenditures between years and the hedging strategy relative to a competitor.

The meeting commenced with the roll call and confirmation of a quorum, noting one absent committee member. Following the closure of general public comment, the committee approved the minutes from the previous meeting via consent agenda. The regular agenda featured an oral update from the CEO regarding CPA operations. Key updates included the scheduling of ordinances for new prospective members in Port, La Puente, and Lynwood in early November. The CEO also announced that annual performance evaluations for the CEO and Nancy Wang would take place next month. A significant operational update involved the recent ribbon-cutting for the Daggett solar plus storage project near Barstow, which is now delivering renewable energy, and noting that the site has the highest solar potential in the continental United States according to NREL. Furthermore, the CEO mentioned an opportunity to potentially revisit San Bernardino County's ban on new utility-scale solar projects. The committee also reviewed the draft agenda for the November Board of Directors meeting, which will see a reorganization of reports to place committee chair updates first. Discussions also covered adding a temporary remote location in Simi Valley for the November meeting to accommodate attendees wishing to transition to the State of the County event. Previews were given for two items slated for the November Board agenda: the proposed Power Purchase Agreement (PPA) with Sunzia Wind, described as a historic, record-setting renewable energy project in New Mexico, and a review of the 2024 rate forecast based on the latest CPUC filings. The committee also noted the need to notice a public hearing regarding potential new city members joining CPA.

The 2025 Impact Report highlights Clean Power Alliance's (CPA) investments in workforce development for the green economy. CPA partners with community organizations to fund training programs for renewable energy jobs, including initiatives for microgrids, electric vehicles, and advanced lighting. Key programs include pre-apprentice training for justice-impacted individuals and women, and wildfire recovery training. The Voyager Scholarship also supports students in energy-focused careers, aiming to build a skilled workforce and foster climate-resilient communities.

The meeting was called to order to discuss the rate setting approach for fiscal year 2025-2026. The primary discussion centered on two rate setting options: the medium reserve option and the strengthened reserve option, the latter being recommended by the executive committee. Both options propose reducing rates for residential and small/medium business customers while maintaining competitiveness with peer utilities and achieving reserve targets. Key topics included setting reserve targets, updating subset rates for existing customers (like street lighting, pumping, and agriculture), and establishing subset rates for new member communities starting service in October. The discussion also addressed expected generation rate volatility due to the reversal of an ERA trigger on October 1st and potential future rate changes in January 2026 that might impact competitiveness, possibly necessitating an interim rate adjustment.

The executive committee meeting included the approval of the previous month's minutes via consent agenda. Key operational updates from the CEO covered scheduling the next executive committee meeting for December 12th and an off-cycle Finance Committee meeting on December 3rd to review bad debt and accounts receivable. Discussions also addressed the ongoing holding pattern regarding 2025 PCIA or SCCE rates. Furthermore, an administrative complaint was filed against Edison regarding changes to handling unpaid CPA charges from inactive accounts, which resulted in a postponement of Edison's planned changes. Updates were provided on securing approximately $1 million in federal/state/county funding over three years for electrification upgrades for low-income customers, and the completion of a fourth prepaid bond leading to nearly $1 million in annual savings. The committee also noted that a previously completed prepaid bond won the Green Bond deal of the year award. Progress on energized communities grants was noted, highlighting electrification assistance for Hawthorne's city hall and potential electric vehicle purchases for Carson. The meeting concluded with a review of the draft December 5th board agenda, which includes seeking board approval for the 2025 policy platform with two new advocacy areas (infrastructure financing and billing transparency), modifications to the Peak Management Pricing program, and the election of a Ventura County At Large nominee. Finally, the committee discussed the proposed rate-setting approach for three new member agencies joining in October 2025 to ensure competitive rates matching existing community targets.