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AREAS OF CONCERN/UNCERTAINTYCITY OF SANTA ANA, PUBLIC WORKS AGENCY, 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702•Shrinking profit margins due to: ◦Resource Adequacy (RA) costs◦Power Cost Indifference Adjustment (PCIA)•Projected long-term cost of wholesale power for CCA and SCE•Regulatory/legislative proceedings/trends•JPA partners business model and policy compatibility7