Central Coast Community Energy (3CE) Operations Board
April 9, 2025

processes, reflecting 3CE’s positions on key matters. These filings amounted to a total of 6,648 pages of documentation.

While not every legislative or regulatory engagement is a clear “win,” the tangible return from CalCCA is a significant reduction in 3CE costs and therefore direct savings to customers. In the past regulatory year alone, CalCCA’s advocacy supported nearly $800 million in avoided industry costs (see items in green below). Even those items which are not clear “wins,” CalCCA engagement initiated important conversations and set the framework for further work before the State legislature and CPUC. A critical policy area not reflected below is nearly $1 Billion in avoided cost shift in last year’s Energy Resource Recovery Accounting proceeding. That key issue is likely to resurface in the newly issued Power Charge Indifference Adjustment rulemaking, for which CalCCA’s expertise and engagement crucial.

FISCAL IMPACT: There is no fiscal impact as this regulatory expense was included in the Operating Budget for 3CE, which was approved by the Policy Board.

CONCLUSION: It is recommended that the Operations Board ratify CalCCA annual membership dues payments for 3CE’s Fiscal Year 2024-2025 and authorize the CEO to pay CalCCA dues in an amount not to exceed $540,000 annually through October 1, 2025 in order to protect and promote 3CE regulatory and legislative interests.

ATTACHMENT(S):

1. 3CE Operational Member Dues Fiscal Year 2024-2025

California Community Choice Association
1121 L Street, Suite 400, Sacramento, CA 95814 | cal-cca.org California Community Choice Association
Operational Member Dues
Fiscal Year 2024-2025
(July 1, 2024-June 30, 2025)
Central Coast Community Energy
Dear Director Shaw,
On March 14, 2024, the CalCCA Board unanimously approved the proposed FY 24-25 budget and corresponding changes to the Operational Membership dues methodology1.

Specifically, the Board agreed to change the dues methodology calculations to increase the rate from .138% to .145% of CCA revenue and increase the cap from $405,000 to $460,000.

Based on this, the annual contribution for your CCA will be $460,000 for the upcoming fiscal year.

Quarterly payment invoices will be sent at the beginning of each fiscal year quarter (July, October, January, and April) from the CalCCA QuickBooks system to your contact(s) on file.

Payments are due 30 days after receipt of the invoice.

Please do not hesitate to contact me if you have any questions or would like to discuss your membership. We sincerely appreciate your continued partnership and involvement in CalCCA as we celebrate our eighth year of operations.

Thank you,
/s/Martha Serianz
Martha Serianz
California Community Choice Association
510-290-4187
[email protected]
1 06_Proposed FY24-25 Budget and Dues.pdf Presentation of the FY 24-25 Budget and Dues Methodology provided to the CalCCA Board of Directors at the March 14, 2024 monthly meeting.

Staff Report Item 7
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Gina Urmatan, Senior Accountant
SUBJECT: Financial report for the period October 1, 2024 through January 31, 2025 DATE: April 9, 2025
RECOMMENDATION:

Receive a financial report for the period October 1, 2024, through January 31, 2025.

SUMMARY:

Over the four months ending January 31, 2025, operating revenues amounted to $194.4 million, and operating expenses totaled $147.8 million for a net operating income of $46.6 million. Non-operating revenue of $3.7 million, driven by interest and investment returns, netted the month with a total net position increase of $50.3 million.

Year-to-date operating revenue resulted in a $22.1 million negative variance compared to budget that is primarily due to a lower-than-expected retail load and partially offset by settlement fund receipts. 3CE is monitoring retail load projections and adjusted the load forecast downward as part of the proposed rate adjustment approved by the Policy Board at its March 19 meeting. This adjustment is based on the historical performance of the forecast versus actual as well as year-to-date actuals. Non-operating revenue from investment returns from assets and interest on collateral exceeded the budget by $1.4 million, resulting from a favorable short-term interest rate. Year-to-date total revenue is $20.7 million lower than budget, an unfavorable variance of 9%.

Year-to-date operating expenditures without capital outlay are lower than the budget by $49.3 million, a variance of 25%. The cost of energy was $43.1 million lower than the budget primarily due to energy costs and the timing of invoicing for regulatory compliance for renewable energy attributes (Renewable Energy Certificates or RECs). Non-energy operating costs were $6.2 million lower than budget due to less-than-planned costs for contracted services, energy programs, and staff vacancies. Capital outlay was

below budget by $5.4 million since capital projects are not recorded as direct expenditures. Instead, these projects are recorded as capital assets on the balance sheet and are expensed over time through depreciation in accordance with accounting principles. Year-to-date total expenditures are $54.6 million lower than budget, a variance of 27%. These variances are expected to level out over the fiscal year as 3CE fulfills its energy obligations, including resource adequacy (RA) and renewable energy credits (RECs).

The net position at the end of January 31, 2025, totaled $268.5 million, a $50.3 million increase from the start of the fiscal year. The increase is primarily due to a rise in collateral deposits held by counterparties and reduced accrued cost of electricity, offset by lower collateral receipts from suppliers. Cash, cash equivalents, and investments totaled $225.1 million, a $1.7 million decrease from the start of the fiscal year. The decrease is due to the net of collateral paid to energy counterparties partially offset by an increase in investments.

FISCAL IMPACT:

There is no financial impact associated with receiving this report.

ATTACHMENT(S):

1. January 31, 2025 Financial Report

Compiled Financial Statements
Centra I Coas
Commu
En rgy

FINANCIAL REPORT
Fiscal Year to Date
As of January 31, 2025
Table of Contents
Compiled Budgetary Comparison Schedule
Budget Variance Commentary
Investment Summary
Accounts Receivable Aging Summary
ity
1 6
8 9
10

1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com

1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com

Staff Report Item 8
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Thomas White, Accountant
SUBJECT: Investment Performance Report for the period of October 1, 2024 through December 31, 2024
DATE: April 9, 2025
RECOMMENDATION:

Receive the 3CE investment performance report for the period of October 1, 2024 through December 31, 2024.

BACKGROUND:
3CE Staff, consistent with the Audit and Finance Committee (“Committee”) recommendation, diversified its operating and investment financial partners to mitigate the risk of holding assets in a few concentrated financial institutions. Since the diversification was completed, staff has presented the investment performance report to the Committee quarterly and included the reports in the Operations and Policy board meetings.

DISCUSSION/ANALYSIS:
3CE ended the quarter on December 31, 2024, with investment holdings that followed the Investment Policy and the strategy of holding enough cash to meet operating costs, including counterparty collateral calls. The strategy consists of holding three different classes of funds: cash to meet ongoing operating costs, liquidity reserves to meet collateral calls and unforeseen costs, and short-term investments to meet reserves, including the strategic reserve and energy rate stabilization funds. As of December 31, 2024, 3CE held $216.4 million in operating and investment accounts. The table below lists the cash and investment balances by account type.

Cash and Investment Mix Holdings by Institution
Account Type Institution Balance Investment Mix
Operating
River City Bank $79,381,412
Cash (sweep) - $53.7M
money market - $20.4M
cash (operating) - $5.0M
Chase 10,385,434 cash (held for collaterals)
Investment
Schwab 62,694,171 Treasuries - $55.1M
cash (sweep) - $7.6M
Fidelity 63,958,041 Treasuries - $63.8M
money market - $0.1M
Total $216,419,059
The investment strategy is passive, where fixed-income holdings such as Treasury notes and bills are held to maturity, and 3CE receives the coupon income and discount. As of December 31, 2024, 3CE served as investment manager of the $126.7 million held in the Schwab and Fidelity brokerage accounts.

The average annual percentage yield for Treasuries ranged from 3.87% to 5.00% over the first quarter.

Treasuries with a maturity date of less than one calendar year accounted for 94% of holdings. Two Treasuries with a combined market value of $7.6 million have a maturity date in Q3 of 2026. All investment holdings managed are high-grade rated investments or higher. 3CE’s investment mix aligns with the Investment Policy and California Government Code. As of December 31, 2024, 3CE held $77.0 million in cash and cash equivalents, $119.0 million in U.S.

Treasuries, and $20.5 million in money market funds. Aside from money market funds, all other investment types do not have state investment limits. The State code limits money market funds to 20% of the portfolio. 3CE was within the State limit at 9.5%.

Cash and Investment Mix Holdings
Type Market Value
% of
Portfolio
Permitted by
CA Government Code
Cash and cash equivalents $76,992,553 35.5% 100%
Money Market Funds 20,471,967 9.5% 20%
U.S. Treasuries 118,954,538 55.0% 100%
Total $216,419,059 100.0%
The FY 2024-25 Adopted Budget, with appropriations of $730.3 million, included estimated investment revenues of $7.0 million. In the first quarter, investment earnings from operating and investment accounts netted $2.4 million in income, $1.1 million from interest on cash and money market accounts, and $1.3 million from short-term investments. Interest earned on 3CE collateral held by counterparties is estimated at $66,735 for total investment and interest earnings of $2.5 million.

As of December 31, 2024, 3CE has 111 days of cash on hand. This is based on the total cash, cash equivalents, and investments of $216.4 million, divided by an average daily expense of $1.95 million.

FISCAL IMPACT:

There is no fiscal impact to receiving this report.

CONCLUSION:
3CE proactively diversified its financial institutional partners while putting cash and short-term investments to work to take advantage of a continued high-interest environment while retaining cash for ongoing operating costs and collateral calls.

ATTACHMENT(S):

None.

Staff Report Item 9
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Juan Lopez, Director of Finance
SUBJECT: FY 2023-24 Audited Financials Report
DATE: April 9, 2025
RECOMMENDATION:

Receive the Policy Board approved FY 2023-24 Audited Financial Statements.

BACKGROUND:
3CE is responsible for the preparation and fair presentation of financial statements. The independent auditor performs tests to ensure the financial statements are free from material misstatement. 3CE worked diligently with its accounting vendor and external auditors over the past few months to ensure a proper review of financial controls and statements.

The FY 2023-24 financial statements consist of the following:
• Independent Auditors’ Report
• Management’s Discussion and Analysis
• Financial statements, including:
 Statements of Net Position
 Revenues and Expenses and Changes in Net Position
 Statements of Cash Flows
 Notes to the Financial Statements
The Audit and Finance Committee received a presentation on the FY 2023-24 audited financial statements at its February 27, 2025 special meeting. The Policy Board received and accepted the FY 2023-24 audited financial statements at its March 19, 2025 meeting.

DISCUSSION/ANALYSIS:

The Independent Auditors’ Report (Report) affirms that 3CE’s financial statements fairly present, in all material respects, the organization’s financial position as of September 30, 2023, and 2024, along with the respective changes in financial position and cash flows. The report includes an unqualified, or "clean," audit opinion, indicating that the financial statements are free from material misstatements and comply with applicable accounting standards. The report confirms that the auditors did not identify any internal control deficiencies classified as material weaknesses.

FY 2023-24 Financial Highlights
 The net position decreased by $23.7 million, down from a $34.7 million increase in the prior year. Cash, cash equivalents, and short-term investments decreased by $28.5 million over the prior year.
 Operating revenues grew over $92.8 million from the prior year, driven primarily by the rate adjustments that occurred on October 1, 2023 and January 1, 2024 to reflect the increased cost of energy.
 Growth in non-operating revenues resulting from higher interest income from a favorable rate environment and engaged investment management, resulting in $3.3 million in higher investment revenue than the prior year.
 The cost of energy increased by approximately $148.5 million due to rising energy attribute costs, with $122.4 million for Resource Adequacy (RA) and $55.3 million in Renewable Energy Certificates (RECs) offset by lower energy generation costs of $19.3 million.  Non-energy operating costs increased $6.0 million from the prior year, mainly from increased costs for higher participation in energy programs, personnel due to increased FTEs from the prior year, data manager fees, and increased community outreach.  Total assets decreased by $0.6 million from the prior year from an increase in accounts receivable, accrued revenue from increases in retail electricity rates, deposits held by counterparties for collateral, and capital assets from the purchase of the San Luis Obispo office building, offset by lower cash and cash equivalents.
 Liabilities increased by $23.2 million from the prior year primarily due to higher accrued cost of electricity, accounts payable, and funds held for executed Treasury trades, offset by a drop in deposits held for development security deposits.

FY 2023-24 Actuals Versus Budget
On May 29, 2024, the Audit and Finance Committee received the FY 2023-24 Mid-Year Budget Forecast.

The Forecast estimated expenditures of $574.1 million, 2% over the $562.8 million adopted budget. The increase in expenditures resulted from higher RA costs, partially offset by lower non-energy operating costs. The Forecast projected a $12.7 million decrease in net position by the end of the fiscal year.

However, actual results showed expenditures reaching $581.4 million, with revenues totaling $557.4 million, leading to a larger-than-anticipated operating shortfall of $24.0 million.

FY 2023-24 Actuals Versus Budget Highlights
Revenue vs. Budget
 Total revenue of $557.4 million reached 99% of the budget, $5.5 million short of the $562.8 million budget.
 Operating revenue from net electricity sales was $12.1 million below budget, primarily due to lower-than-expected retail volume, offset by reduced uncollectible accounts.  Non-operating income of $13.0 million exceeded budget by $6.6 million, driven by favorable interest rates and active investment management.

Expenditures vs. Budget
 Total expenditures of $581.4 million exceeded the budget by 3%, coming in $18.5 million above the $562.8 million budget.
 Cost of energy of $548.8 million was higher than budget by $28.5 million, a 5% variance. The increase is mainly attributed to a $15.1 million higher-than-budgeted cost for RECs to meet Renewables Portfolio Standard (RPS) compliance for the 2021-2024 multi-year compliance period.

Of the $15.1 million, $6.0 million were for RECs allocated for the two last months of Fiscal Year 2022-23 that were not recorded in that year due to the timing of the contract execution and invoicing. RA compliance costs exceed the budget by $13.4 million.  Non-energy operating costs of $32.5 million were 23% under budget due to lower spending on energy programs, unspent contingencies, contracted services, and personnel vacancies.

CONCLUSION:

As of September 30, 2024, the net position decreased by $23.7 million, primarily due to higher-than-forecasted costs for energy attributes. Like other load-serving entities, 3CE faced delays in Power Purchase Agreements (PPAs) due to interconnection issues, supply chain disruptions, rising project costs, and contract negotiations. These challenges led to a less robust renewable energy portfolio, requiring increased market REC purchases. Additionally, regulatory changes further tightened RA supply by restricting the RA value of renewables, introducing delivery requirements for imported RA, and increasing supply obligations.

FISCAL IMPACT:

There is no financial impact by receiving this report.

ATTACHMENT(S):

1. FY 2023-24 Audited Financial Statements

2. FY 2023-24 Supplemental Budgetary Schedule, Investment Summary, and Dashboard

FINANCIAL

STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023

INCLUDING REPORT OF INDEPENDENT AUDITORS

CENTRAL COAST COMMUNITY ENERGY
YEARS ENDED SEPTEMBER 30, 2024 AND 2023

TABLE OF CONTENTS
Independent Auditor’s Report ………………………………………………………................ 1 Management’s Discussion and Analysis ……………………………………………................ 4 Basic Financial Statements:

Statements of Net Position ……………………………………………………………. 10
Statements of Revenues, Expenses and Changes in Net Position ……………………. 11 Statements of Cash Flows …………………………………………………………….. 12
Notes to the Basic Financial Statements ……………………………………................ 14

Pisenti & Brinker LLP has joined practices with Kosmatka, Donnelly & Co., LLP (dba, KDP Certified Public Accountants, LLP). The former Pisenti & Brinker LLP Partners are now Partners of KDP Certified Public Accountants, LLP (KDP). KDP Certified Public accountants, LLP is a licensed CPA firm that provides attest services to its clients. Pisenti & Brinker Management LLC provides professional tax and business consulting services to its clients. Pisenti & Brinker Management, LLC and KDP Certified Public Accountants, LLP practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations, and professional standards. 3562 Round Barn Circle, Suite 200
Santa Rosa, CA 95403
(707) 542-3343  Office
(707) 527-5608  Fax
Independent Auditor’s Report
To the Board of Directors
Central Coast Community Energy
Opinion
We have audited the accompanying financial statements of Central Coast Community Energy (3CE), which comprise the statements of net position as of September 30, 2024 and 2023, the related statements of revenue, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of 3CE as of September 30, 2024 and 2023, and the results of its operations and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of 3CE and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about 3CE’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued, including any currently known information that may raise substantial doubt shortly thereafter.

Independent Auditor’s Report (continued)
Auditor’s Responsibilities for the Audits of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audits. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audits in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of 3CE’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about 3CE’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s discussion and analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Kosmatka, Donnelly & Co., LLP
Santa Rosa, California
February 12, 2025

CENTRAL COAST COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
4 The purpose of management’s discussion and analysis (MD&A) is to help stakeholders and other readers understand what the financial statements and notes in this report say about Central Coast Community Energy’s (3CE) financial health and why it has changed since last year. It contains information drawn from other parts of the report, accompanied by explanations informed by the finance staff’s knowledge of 3CE’s finances.

Overview of the Financial Statements
3CE’s financial report contains basic financial statements, which include:
o The Statements of Net Position include all of 3CE’s assets, liabilities, and net position and provides information about the nature and amount of resources and obligations at a specific point in time.
o The Statements of Revenues, Expenses, and Changes in Net Position report all of 3CE’s revenue and expenses for the years shown.
o The Statements of Cash Flows report the cash provided and used by operating activities, as well as other sources and uses, such as capital and investing activities. o The notes to the Basic Financial Statements provide additional details and information related to the basic financial statements.

CENTRAL COAST COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
5 Financial Summary
3CE’s Net Position
2024 2023 2022
Current assets $ 314,501,404 $ 324,238,888 $ 259,993,090 Noncurrent assets
Capital assets, net 3,817,033 2,008,218 219,319
Other noncurrent assets 8,916,927 1,543,979 1,731,180
Total noncurrent assets 12,733,960 3,552,197 1,950,499
Total assets 327,235,364 327,791,085 261,943,589
Current liabilities 97,925,104 54,996,528 45,601,781
Noncurrent liabilities 11,144,817 30,923,232 9,131,250
Total liabilities 109,069,921 85,919,760 54,733,031
Net position
Net investment in capital assets 2,650,082 520,678 219,319 Unrestricted 215,515,361 241,350,647 206,991,239
Total net position $ 218,165,443 $ 241,871,325 $ 207,210,558 As of September 30, 2024, 3CE’s total net position was approximately $218,000,000, a decrease of $24,000,000 as compared to September 30, 2023.
3CE’s Change in Net Position
2024 2023 2022
Operating revenues $ 544,456,634 $ 451,619,272 $ 401,698,835 Nonoperating revenues 12,893,661 9,635,091 3,800,219
Total income 557,350,295 461,254,363 405,499,054
Operating expenses 580,996,244 426,540,098 388,276,955
Nonoperating expenses 59,933 53,498 -
Total expenses 581,056,177 426,593,596 388,276,955
Change in net position (23,705,882) $ $ 34,660,767 $ 17,222,099 Electricity sales increased in 2024 as a result of price increases. Despite the increase in revenues, there was a decrease in net position in 2024 due to significant increases in the cost of electricity incurred by 3CE which were driven by market price increases for renewable energy and regulatory resource adequacy.

CENTRAL COAST COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
6 Detailed Analysis
Current assets decreased from $324,000,000 at the end of fiscal year 2023 to $315,000,000 at the end of fiscal year 2024. The decrease was primarily due to cash outflows to cover increasing energy costs. Current assets at the end of fiscal year 2024 were primarily comprised of cash and investments of $219,000,000, accounts receivable of $44,000,000, and accrued revenue of $31,000,000.

Capital assets are reported net of depreciation and amortization. Each year, the change is mostly due to capital asset acquisitions less depreciation and amortization expense. Capital assets include construction in progress, land, software, leasehold improvements, furniture, equipment, a vehicle, building and a leased asset. The increase from 2023 to 2024 was primarily the result of an office building purchased during the current year in the City of San Luis Obispo.

Other noncurrent assets consist of the long-term portion ($1,330,000) of a $2,000,000 loan made in 2022 to the County of Santa Cruz to acquire electric generation equipment.

The largest component of current liabilities is the cost of electricity delivered to customers that was not paid by 3CE at the end of the fiscal year. Current liabilities for the cost of energy increased each year due to changes in payment terms of certain energy products, as well as the prices of those products. Accrued cost of electricity was approximately $77,000,000 and $49,000,000 at the end of fiscal years 2024 and 2023, respectively. The primary driver of the increased cost of electricity was market price increases for renewable energy and resource adequacy resulting from constrained supply.

Noncurrent liabilities consist of supplier security deposits and the long-term portion of lease liability related to 3CE’s office premises. The reduction in noncurrent liabilities was a result of repayment of security deposits to suppliers that had been held by 3CE.

Operating revenues increased each year from fiscal years 2022 to 2024, primarily from increases in rates charged to customers. 3CE also receives revenues from sources other than retail customer sales. These sources include liquidated damage revenue resulting from electricity suppliers’ noncompliance with contract provisions and grant income used to assist with various customer programs.

CENTRAL COAST COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
7 Detailed Analysis (continued)
Grant income from the California Arrearage Payment Plan (CAPP) was included in nonoperating revenues for fiscal years 2022 and 2023. This grant was applicable for two years and did not recur in fiscal year 2024. Investment income increased each year due to changes in market interest rates as well as increases in invested assets.

Operating expenses increased each year primarily due to market forces that resulted in increases in the cost of electricity, 3CE’s largest expense. 3CE procures energy from a variety of sources to reduce market risk and to maintain a balanced renewable power portfolio. The primary driver of the increase in energy costs from 2023 to 2024 was the rising costs in the resource adequacy market and the timing of certain contracts that were executed to comply with the State’s Renewable Portfolio Standards (RPS) through its acquisition of Renewable Energy Certificates (RECs).

Significant Capital Asset and Long-Term Financing Activity Capital assets include office equipment, such as computers, furniture, a vehicle, leasehold improvements and a leased asset for 3CE’s office premises. Additionally, during fiscal year 2024, 3CE purchased real estate to be used for future office operations in the San Luis Obispo region.

Assets that are leased by 3CE, such as office premises, are recorded in the Statement of Net Position with a related liability for future obligations.

CENTRAL COAST COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
8 Currently Known Facts, Decisions, or Conditions
The fiscal year ended September 30, 2024 was a year of stable operations and growing cost pressures from increased costs of energy (COE), resource adequacy (RA) compliance and environmental attributes. Total revenue of $557.3 million is estimated at 99.0% of budget. Total expenditures of $581.1 million were over budget, representing a 3.3% variance. RA compliance and meeting Renewable Portfolio Standard (RPS) requirements for Compliance Period 4 contributed to higher COE. Like other load-serving entities (LSEs), 3CE faced delays in long-term PPAs caused by interconnection issues, supply chain disruptions, rising project costs, and contractual negotiations.

Infrastructure supply development remains constrained. These constraints are driven by the increased demand for renewable and other energy resources by urban electrification and the growth in technology data centers and associated artificial intelligence processing needs. 3CE views interconnection delays to existing or planned new build clean and renewable projects as the largest risk. The average wait time for projects entering the interconnection queue has increased to 5-8 years before becoming operational, whereas in the past, it took 2-3 years. Furthermore, a recent report indicated only 15% of projects within the California Independent System Operator (CAISO) queue were successful at coming online. CAISO, in coordination with the CPUC and CEC, has been endeavoring to reform the interconnection process, 3CE has a deep understanding of this challenging environment and will adjust business strategies as necessary to succeed. 3CE holds a portfolio of contracts that mitigate exposure to price spikes in the CAISO markets.

However, in the past fiscal year, CAISO market prices, as well as electricity futures prices in liquid forward markets, declined, leading to cost pressures for counterparty suppliers. At the same time, the overall market for electricity and related commodity products is experiencing a rising price environment. The rising price environment is driven by elevated costs to enter into long-term offtake agreements such as power purchase agreements (PPAs) and energy storage offtake agreements, elevated prices for RA, and environmental attributes such as Renewable Energy Certificates (RECs).

While the forward prices for energy indicate higher-than-normal wholesale prices for the foreseeable future, with every new fixed-price PPA project to come online, 3CE limits its exposure to these spot market prices.
3CE is working towards a 100% clean and renewable energy portfolio and is currently negotiating several agreements to add generation and energy storage to move closer to that goal. While the targeted timeline for achieving this goal is 2030, 3CE may choose to extend it to a later date, if interconnection wait times do not improve or customer affordability becomes a concern. 3CE has also taken steps to mitigate the elevated prices for RA. 3CE’s RA procurement strategy seeks long-term fixed-price contracts for RA that will help reduce our exposure to the spot market RA prices.

Beginning in 2026, 3CE has long-term contracts with two hybrid natural gas resources paired with energy storage that will provide valuable dispatchable energy and an RA benefit at fixed prices.

CENTRAL COAST COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
9 Currently Known Facts, Decisions, or Conditions (continued) 3CE is regularly reviewing its Energy Risk Management Policy (ERMP) to ensure it continues to meet 3CE’s business needs while maintaining sufficient risk tolerances. Purchases made at fixed contractual prices reduce the need to purchase energy in the volatile daily open market. Fixed price energy purchases provide for suppliers to deliver to 3CE at a fixed price. They are used to manage the electricity commodity price risk that 3CE faces as an LSE. Specific to 3CE’s customers, fixed price energy hedges are used to provide cost certainty and rate stability. The target hedge percentages depend on time and the hedge pricing relative to historical energy costs. In general, 3CE targets hedging 63-110% of its exposure in energy products on a short-duration basis of under a year. 3CE continues to comply with its ERMP and regularly updates its Energy Risk Committee on hedging.
3CE is participating in a joint procurement effort with CC Power (California Community Power), a joint action agency made up of member CCAs, to explore the possibility of entering into a build-transfer agreement. Currently, in its early stages, CC Power is soliciting developer bids for build-transfer projects and evaluating offers. If CC Power identifies a potential project, 3CE would have the option to participate in a portion of the project, the remainder of which would be shared by other CC Power members who opted to participate in the project. 3CE retains a strong customer and revenue base with low opt-out levels. 3CE will start serving the City of Atascadero and the County of San Luis Obispo beginning January 1, 2025. These two enrollments will add around 70,000 customer accounts, bringing the total customer count to about 515,000. 3CE continues prioritizing community outreach and communication efforts to ensure a strong local presence, establishing 3CE as the preferred renewable energy provider. 3CE serves approximately 94% of all eligible customers in the service area and that rate of participation is expected to remain stable.
3CE continues to actively engage in legislative and regulatory matters that can impact its energy procurement requirements and energy-related expenditures.

Requests for Information
This financial report is designed to provide 3CE’s board members, stakeholders, customers, and creditors with a general overview of 3CE’s finances and to demonstrate 3CE’s accountability for the funds under its stewardship.

Please address any questions about this report or requests for additional financial information to the finance department at 70 Garden Court, Suite 300, Monterey, CA 93940.

BASIC FINANCIAL STATEMENTS

CENTRAL COAST COMMUNITY ENERGY
The accompanying notes are an integral part of these financial statements. 10

STATEMENTS OF NET POSITION
SEPTEMBER 30, 2024 AND 2023
2024 2023
ASSETS
Current assets
Cash and cash equivalents $ 150,539,681 $ 196,033,869
Accounts receivable, net of allowance 44,437,895 32,759,275 Accrued revenue 30,948,530 24,865,108
Other receivables 6,363,531 4,273,462
Investments 68,632,549 59,245,668
Prepaid expenses 1,829,224 380,211
Deposits 11,559,276 6,494,094
Loan receivable 190,718 187,201
Total current assets 314,501,404 324,238,888
Noncurrent assets
Investments 7,563,666 -
Deposits 23,182 23,182
Loan receivable 1,330,079 1,520,797
Capital assets, net of depreciation and amortization 3,817,033 2,008,218 Total noncurrent assets 12,733,960 3,552,197
Total assets 327,235,364 327,791,085

LIABILITIES
Current liabilities
Accrued cost of electricity 76,773,246 48,922,476
Accounts payable 4,864,146 2,777,101
Due to broker 12,035,076 -
Other accrued liabilities 800,930 741,801
User taxes and energy surcharges due to other governments 1,977,148 1,753,727 Security deposits - energy suppliers 1,149,299 501,000
Lease liability 325,259 300,423
Total current liabilities 97,925,104 54,996,528
Noncurrent liabilities
Security deposits - energy suppliers 10,303,125 29,756,280 Lease liability 841,692 1,166,952
Total noncurrent liabilities 11,144,817 30,923,232
Total liabilities 109,069,921 85,919,760

NET POSITION
Net investment in capital assets 2,650,082 520,678
Unrestricted 215,515,361 241,350,647
Total net position $ 218,165,443 $ 241,871,325

CENTRAL COAST COMMUNITY ENERGY
The accompanying notes are an integral part of these financial statements. 11

STATEMENTS OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
2024 2023

OPERATING REVENUES
Electricity sales, net $ 544,358,419 $ 450,713,404
Liquidated damages - 750,000
Other income 98,215 155,868
Total operating revenues 544,456,634 451,619,272

OPERATING EXPENSES
Cost of electricity 547,248,240 398,746,769
Contract services 13,387,839 10,820,099
Staff compensation 7,830,528 6,200,592
Other operating expenses 1,695,758 1,869,295
Program incentives 10,248,121 8,484,775
Depreciation and amortization 585,758 418,568
Total operating expenses 580,996,244 426,540,098
Operating income (loss) (36,539,610) 25,079,174

NONOPERATING REVENUES (EXPENSES)
Investment income 12,893,661 8,184,122
Grant revenue 1,450,969 -
Interest and financing costs (59,933) (53,498)
Nonoperating revenues (expenses) 12,833,728 9,581,593
CHANGE IN NET POSITION (23,705,882) 34,660,767
Net position at beginning of year 241,871,325 207,210,558 Net position at end of year $ 218,165,443 $ 241,871,325

CENTRAL COAST COMMUNITY ENERGY
The accompanying notes are an integral part of these financial statements. 12

STATEMENTS OF CASH FLOWS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
2024 2023

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 536,022,766 $ 466,288,740
Other operating receipts 23,814,719 1,052,868
Receipts of deposits and collateral 49,873,965 53,684,900 Payments to suppliers for electricity (550,573,743) (392,088,215) Payments of deposits and collateral (69,256,483) (30,759,035) Payments for other goods and services (15,088,564) (12,022,290) Payments for program incentives (8,250,194) (7,797,967) Payments of staff compensation (7,654,438) (6,467,227)
Payments of taxes and energy surcharges to other governments (9,199,968) (8,274,859) Net cash provided (used) by operating activities (50,311,940) 63,616,915

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Grant revenue 1,450,969 -

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments of lease liability (360,354) (264,318)
Payments to acquire capital assets (2,413,580) (509,105) Net cash used by capital and related financing activities (2,773,934) (773,423)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 10,981,615 7,060,790
Proceeds from investment sales 127,312,461 111,223,174
Principal payments received of loan receivable 187,201 292,002 Purchase of investments (130,889,591) (137,227,427)
Net cash provided (used) by investing activities 7,591,686 (18,651,461) Net change in cash and cash equivalents (45,494,188) 45,643,000 Cash and cash equivalents at beginning of year 196,033,869 150,390,869 Cash and cash equivalents at end of year $ 150,539,681 $ 196,033,869

CENTRAL COAST COMMUNITY ENERGY
The accompanying notes are an integral part of these financial statements. 13

STATEMENTS OF CASH FLOWS (CONTINUED)
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
2024 2023
Operating income (loss) $ (36,539,610) $ 25,079,174
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities
Depreciation and amortization expense 585,758 418,568
(Increase) decrease in:

Accounts receivable, net of allowance (11,678,620) 14,348,325 Accrued revenue (6,083,425) (6,703,164)
Other receivables (1,775,892) (1,913,221)
Prepaid expenses (1,449,013) (71,792)
Deposits (4,805,654) 1,799,836
Increase (decrease) in:

Accrued cost of electricity 27,850,770 8,847,894
Accounts payable 2,106,052 1,167,725
Other accrued liabilities 59,129 (294,223)
User taxes and energy surcharges due to other governments 223,421 (188,237) Security deposits - energy suppliers (18,804,856) 21,126,030 Net cash provided (used) by operating activities $ (50,311,940) $ 63,616,915 Acquisition of lease asset $ 1,678,196 - $
Unrealized appreciation and timing differences in investment income 1,912,046 $ $ 1,123,332

NONCASH INVESTING ACTIVITES

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES

NONCASH CAPITAL AND RELATED FINANCING ACTIVITES

CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
14 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY
Central Coast Community Energy (3CE) is a Joint Powers Authority created on February 21, 2017, and its jurisdictions consist of the following local governments as of September 30, 2024:

Counties Cities and Towns
Monterey Arroyo Grande Morro Bay
San Benito Atascadero Pacific Grove
San Luis Obispo Buellton Paso Robles
Santa Barbara Capitola Pismo Beach
Santa Cruz Carmel-by-the-Sea Salinas
Carpinteria San Juan Bautista
Del Rey Oaks San Luis Obispo
Goleta Sand City
Gonzales Santa Cruz
Greenfield Santa Maria
Grover Beach Scotts Valley
Guadalupe Seaside
Hollister Soledad
Marina Solvang
Monterey Watsonville
3CE is separate from and derives no financial support from its members. 3CE is governed by two Governing Boards, a Policy Board and an Operations Board. Each Board is comprised of 19 members with 19 alternates representing the participating communities. Some of the 19 members represent more than one jurisdiction. Policy Board Members are elected officials from 3CE member communities. Operations Board Members are executives leading the member cities and counties. 3CE was formed to acquire retail electricity for the residents and businesses within its members’ jurisdictions, study, promote, conduct, operate, and manage energy and energy-related climate change programs, and to exercise all other powers necessary and incidental to accomplishing these objectives. A core function of 3CE is to provide electric service that includes the use of renewable sources under the Community Choice Aggregation Program under California Public Utilities Code (CPUC) Section 366.2.
3CE began its energy delivery operations in March 2018. Electricity is acquired from commercial suppliers and delivered through existing physical infrastructure and equipment managed by Pacific Gas and Electric Company (PG&E) and Southern California Edison (SCE).

CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
15 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

BASIS OF ACCOUNTING
3CE’s financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements. 3CE’s operations are accounted for as a governmental enterprise fund and are reported using the economic resources measurement focus and the accrual basis of accounting, similar to business enterprises. Accordingly, revenues are recognized when they are earned; and expenses are recognized at the time liabilities are incurred. Enterprise fund type operating statements present increases (revenues) and decreases (expenses) in total net position. Reported net position is segregated into three categories: Net investment in capital assets, restricted, and unrestricted.

When both restricted and unrestricted resources are available for use, it is 3CE’s policy to use restricted resources first, and then unrestricted resources as they are needed.

CASH AND CASH EQUIVALENTS
For purposes of the Statements of Cash Flows, 3CE defines cash and cash equivalents to include cash on hand, demand deposits and short-term investments with an original maturity of three months or less.

INVESTMENTS
Investments are stated at fair value based on prices listed on a national exchange for debt securities.

Certificates of deposits are stated at cost. 3CE intends to hold its securities to maturity. Investments with a maturity of less than one year are shown as current assets in the Statement of Net Position.

Investments with a maturity of one year or more are shown as noncurrent assets in the Statement of Net Position.
3CE’s Investment Policy permits the following types of investments:

U.S. Treasury obligations
Obligations of the State of California
Obligations of any local agency within California
Registered treasury notes or bonds of the other 49 states Commercial paper
Repurchase agreements
Local Agency Investment Fund (State Pool)
County Investment Fund (County Pool)

CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
16 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

PREPAID EXPENSES
Payments made to vendors that will benefit periods beyond the end of the current fiscal year are recorded as prepaid expenses.

DEPOSITS
Contracts to purchase energy may require 3CE to provide the supplier with advanced payments or security deposits. Deposits are generally held for the term of the contract and are classified as current or noncurrent assets depending on the length of time the deposits will be outstanding.

LEASE ASSET AND LEASE LIABILITY
3CE recognizes an asset and liability when it enters into certain leasing arrangements. The cost of the leased asset is amortized over the term of the lease. The lease liability is the present value of payments expected to be paid to the lessor during the lease term. 3CE’s only leased asset and liability relate to its office premises.

CAPITAL ASSETS AND DEPRECIATION
3CE’s policy is to capitalize furniture and equipment valued over $1,000 that is expected to be in service for over one year. Depreciation is computed according to the straight-line method over estimated useful lives of three years for electronic equipment, seven years for furniture, and six years for leasehold improvements. Buildings and improvements are depreciated over 30 years. 3CE does not own any electric generation, transmission or distribution assets.

DUE TO BROKER
Investments purchased before the end of the fiscal year, but settled after the fiscal year, are recorded as due to broker.

SECURITY DEPOSITS-ENERGY SUPPLIERS
Various energy purchase contracts entered into by 3CE require the supplier to provide 3CE with a security deposit. These deposits are generally held for the term of the contract or until the completion of certain benchmarks. Deposits are classified as current or noncurrent depending on the length of time the deposits will be held.

CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
17 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

NET POSITION
Net position is presented in the following components:

Net investment in capital assets: This component of net position consists of capital assets, net of accumulated depreciation and amortization, and reduced by outstanding borrowings that are attributable to the acquisition, construction, or improvement of those assets.

Unrestricted: This component of net position consists of net position that does not meet the definition of “net investment in capital assets”.

OPERATING AND NONOPERATING REVENUES
Operating revenues include energy sales to retail and wholesale customers, and liquidated damages from suppliers that fail to meet delivery commitments.

Investment income includes interest earned on bank deposits as well as unrealized gains and losses on its investment holdings. Interest and investment income are considered nonoperating revenues.

REVENUE RECOGNITION
3CE recognizes revenue according to the accrual basis. This includes invoices issued to customers during the reporting period and electricity estimated to have been delivered, but not yet billed at year-end. Management estimates that a portion of the billed amounts will be uncollectible. Accordingly, an allowance for uncollectible accounts has been recorded. Revenue is presented net of estimated uncollectible amounts.

OPERATING AND NONOPERATING EXPENSES
Operating expenses include the costs of electricity, contractor services, staffing, other operating expenses, program incentives, and depreciation and amortization of capital assets. Expenses not meeting this definition are reported as nonoperating expenses.

COST OF ELECTRICITY
During the normal course of business, 3CE purchases electrical power from numerous suppliers.

Electricity costs include the cost of energy and capacity arising from contracts with energy suppliers and generation credits, and load and other charges arising from 3CE’s participation in the California Independent System Operator’s (CAISO) centralized market. The cost of electricity and capacity is recognized as “Cost of Electricity” in the Statements of Revenues, Expenses and Changes in Net Position.

CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
18 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

ELECTRICAL POWER PURCHASED (CONTINUED)
To comply with the State of California’s Renewable Portfolio Standards (RPS), 3CE acquires RPS eligible renewable energy evidenced by Renewable Energy Certificates (Certificates) recognized by the Western Renewable Energy Generation Information System. 3CE obtains Certificates with the intent to retire them and does not sell or build surpluses of Certificates with a profit motive. An expense is recognized at the point that the cost of the Certificate is due and payable to the supplier. 3CE purchases capacity commitments from qualifying electricity generators to comply with the CPUC’s Resource Adequacy Program. The goals of the Resource Adequacy Program are to provide sufficient resources to the CAISO to ensure the safe and reliable operation of the electricity grid in real-time and to provide appropriate incentives for the siting and construction of new resources needed for reliability in the future.

STAFFING COSTS
3CE pays employees bi-weekly and fully pays its obligation for health benefits and contributions to its defined contribution retirement plan each month. 3CE is not obligated to provide post-employment healthcare or other fringe benefits, and accordingly, no related liability is recorded in these financial statements. 3CE provides compensated time off, and the related liability is recorded in these financial statements.

ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

RECLASSIFICATIONS
Certain amounts in the prior-year financial statements have been reclassified for comparative purposes to conform to the presentation of the current-year financial statements. These reclassifications did not result in any change in the previously reported net position or change in net position.

CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
19 2. CASH AND CASH EQUIVALENTS
3CE maintains its cash in both interest-bearing and non-interest-bearing deposit accounts in several banks. 3CE’s deposits are subject to California Government Code Section 16521, which requires banks to collateralize public funds in excess of the Federal Deposit Insurance Corporation (FDIC) limit of $250,000 by 110%. Certain short-term investments with original maturities of less than three months are classified as cash and cash equivalents, which are not subject to the collateral requirement or FDIC coverage previously mentioned. Accordingly, the amount of risk is not disclosed. 3CE monitors its risk exposure on an ongoing basis.

3. RECEIVABLES AND DEPOSITS

ACCOUNTS RECEIVABLE
Accounts receivable was as follows as of September 30:
2024 2023
Accounts receivable from customers $ 54,437,895 $ 43,313,058 Allowance for uncollectible accounts (10,000,000) (10,553,783) Net accounts receivable $ 44,437,895 $ 32,759,275
The majority of account collections occur within the first few months following customer invoicing. 3CE estimates that a portion of the invoiced accounts will not be collected. 3CE continues collection efforts on accounts in excess of de minimis balances regardless of the age of the account. Although collection success generally decreases with the age of the receivable, 3CE continues to have success in collecting older accounts. The allowance for uncollectible accounts at the end of a period includes reserves for amounts invoiced during the current and prior fiscal years. During 2024 and 2023, 3CE recorded $7,233,000 and $6,864,000, respectively, as an increase to the allowance in anticipation of uncollectible accounts. Amounts estimated to be uncollectible are reported as a reduction in electricity sales in the Statement of Revenues, Expenses and Changes in Net Position. Other changes in the allowance for uncollectible accounts from year-to-year are the result of account write-offs.

OTHER RECEIVABLES
Other receivables consist primarily of amounts due from energy suppliers, generally as a result of certain wholesale transactions for energy products.

DEPOSITS
Combined current and noncurrent deposits were approximately $11,582,000 and $6,517,000 as of September 30, 2024 and 2023, respectively. The majority of current deposits relate to collateral posted with the CAISO, which is determined based on 3CE’s market exposure at a given time and funds provided to an energy program implementer to issue customer incentive payments.

CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
20 4. INVESTMENTS
During the years ended September 30, 2024 and 2023, 3CE purchased investments with original maturities of three months or more. As of September 30, investments, presented at fair value, were as follows:
2024 2023
Current Investments:

U.S. Treasury Securities $ 68,632,549 $ 45,545,580
Commercial paper 3,700,088 -
Certificate of deposits 10,000,000 -
Total current investments $ 68,632,549 $ 59,245,668
2024 2023
Noncurrent Investments:

U.S. Treasury Securities $ 7,563,666 $ -

FAIR VALUE MEASUREMENT
GASB Statement No. 72, Fair Value Measurement and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are significant other observable inputs, and Level 3 inputs are significant unobservable inputs.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. 3CE’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.

As of September 30, 2024 and 2023, 3CE’s investments are considered Level 1 inputs, except for certificates of deposits, which are based on the nominal value which is materially consistent with fair value. Quoted prices in active markets were used for determining fair value measurement.

CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
21 4. INVESTMENTS (continued)

CREDIT RISK
Credit risk is the risk an issuer or other counterparty to an investment will not fulfill its obligations.

Certain investments, such as obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government, are not considered to have credit risk. Credit risk information for other investments is not available.
3CE’s investment policy addresses this risk. 3CE limits investments to those allowed by Section 53600 of the California Government Code that addresses the risk allowable for each investment.

CUSTODIAL CREDIT RISK – CERTIFICATE OF DEPOSITS
Custodial credit risk is the risk that in the event of a financial institution failure, 3CE’s deposits may not be returned to 3CE. 3CE’s deposits are subject to California Government Code Section 16521, which requires banks to collateralize public funds in excess of the Federal Deposit Insurance Corporation (FDIC) limit of $250,000 by 110%.

As of September 30, 2024 and 2023, none of 3CE’s bank balances are known to be individually exposed to custodial credit risk.

CUSTODIAL CREDIT RISK - INVESTMENTS
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, 3CE would not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. All of 3CE’s investments are exposed to custodial credit risk.
3CE’s investment policy addresses custodial credit risk. All investments owned by 3CE shall be held in safekeeping by a third-party custodian, acting as an agent for 3CE under the terms of a custody agreement.

CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
22 4. INVESTMENTS (continued)

INTEREST RATE RISK - INVESTMENTS
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Duration is a measure of the price sensitivity of a fixed income portfolio to changes in interest rates. It is calculated as the weighted average time to receive a bond’s coupon and principal payments. The longer the duration of a portfolio, the greater its price sensitivity to changes in interest rates. 3CE manages its exposure to declines in fair values by limiting the weighted average maturity of its investments. 3CE intends to hold investments to maturity.

Following is a summary of investment maturities as of September 30, 2024:

Investment Maturities
Investment Type Fair Value Less Than 1 Year 1-5 Years
U.S. Treasury Securities $ 76,196,215 $ 68,632,549 $ 7,563,666 All investments had a maturity of less than one year as of September 30, 2023.

5. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2024 was as follows:

Beginning
balance Increases
Ending
balance
Capital assets not being depreciated:

Building - construction in progress $ - $ 74,068 $ 74,068 Land - 898,658 898,658
Capital assets being depreciated and amortized:

Furniture and equipment 696,716 13,873 710,589
Leasehold improvements 90,661 90,661 -
Software 400,126 400,126 -
Building 1,407,974 - 1,407,974
Lease asset 1,678,196 1,678,196 -
Total capital assets being depreciated and amortized 2,865,699 1,421,847 4,287,546 Less accumulated depreciation and amortization:

Furniture, equipment and leasehold improvements (539,063) (116,743) (655,806) Software (66,688) (133,376) (200,064)
Lease asset (251,730) (335,639) (587,369)
Total accumulated depreciation and amortization (857,481) (585,758) (1,443,239) Total capital assets, net of depreciation and amortization 2,008,218 $ $ 1,808,815 $ 3,817,033

CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
23 5. CAPITAL ASSETS (continued)
Capital asset activity for the year ended September 30, 2023 was as follows:

Beginning
balance Increases
Ending
balance
Capital assets being depreciated and amortized:

Furniture and equipment $ 599,545 $ 97,171 $ 696,716
Leasehold improvements 58,687 31,974 90,661
Software 400,126 - 400,126
Lease asset 1,678,196 - 1,678,196
Total capital assets being depreciated and amortized 658,232 2,207,467 2,865,699 Less accumulated depreciation and amortization:

Furniture, equipment and leasehold improvements (438,913) (100,150) (539,063) Software (66,688) - (66,688)
Lease asset (251,730) - (251,730)
Total accumulated depreciation and amortization (438,913) (418,568) (857,481) Total capital assets, net of depreciation and amortization 219,319 $ $ 1,788,899 $ 2,008,218

6. LEASE
A lease asset is reported in accordance with GASB No. 87.

On October 27, 2022, 3CE entered into a 3-year non-cancelable lease for its office premises for a term commencing on January 1, 2023. The lease agreement includes an option to renew the lease for two additional one-year terms.

Rental payments under this lease were $360,000 and $330,000 for the years ended September 30, 2024 and 2023, respectively.

As of September 30, 2024, future minimum lease payments under this lease were projected as follows:

Principal Interest Total
Year ending September 30,
2025 $ 325,259 $ 45,905 $ 371,164
2026 351,568 30,731 382,299
2027 379,426 14,342 393,768
2028 110,698 878 111,576
Total $ 1,166,951 $ 91,856 $ 1,258,807

CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
24 7. GRANT REVENUE
3CE administered a grant from the California Arrearage Payment Program (CAPP) that offers financial assistance for California energy utility customers to help reduce past due energy account balances that increased during the COVID-19 pandemic. This program concluded in 2023.

8. DEFINED CONTRIBUTION RETIREMENT PLAN
3CE provides retirement benefits to eligible employees through a 401(a) Retirement Plan (Plan). The Plan is a defined contribution (Internal Revenue Code 401(a)) retirement plan established to provide benefits at retirement to employees of certain qualified employers admitted by the Plan. The Plan is administered by the Public Agency Retirement System (PARS). The number of Plan participants was 41 and 34 as of September 30, 2024 and 2023, respectively. 3CE is required to contribute 10% of covered payroll as a match to required employee contributions. 3CE contributed approximately $591,000 and $502,000 for the years ended September 30, 2024 and 2023, respectively. Plan provisions and contribution requirements as they apply to 3CE are established and may be amended by the Governing Board. 3CE elected out of the Social Security system for employees eligible for the Plan. 3CE also provides a 457(b) Retirement Plan where employees can make tax deferred contributions.

9. RISK MANAGEMENT
3CE is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; and errors and omissions. During the year, 3CE purchased insurance policies from investment-grade commercial carriers to mitigate risks that include those associated with earthquakes, theft, general liability, errors and omissions, and property damage. 3CE has general liability coverage of $1,000,000, with a deductible of $1,000.
3CE maintains risk management policies, procedures and systems that help mitigate credit, liquidity, market, operating, regulatory and other risks that arise from participation in the California energy market.

Credit guidelines include a preference for transacting with investment-grade counterparties, evaluating counterparties’ financial condition and assigning credit limits as applicable. These credit limits are established based on risk and return considerations under terms customarily available in the industry. In addition, 3CE enters into netting arrangements whenever possible and, where appropriate, obtains collateral and other performance assurances from counterparties.

25 CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023

10. PURCHASE COMMITMENTS

POWER AND ELECTRIC CAPACITY
In the ordinary course of business, 3CE enters into power purchase agreements to acquire energy and electric capacity. The price and volume of purchased power is largely fixed. Variable priced power, which is a small part of 3CE’s portfolio, is generally linked to the market price of either natural gas or power at the date of delivery. Variable volume is generally associated with contracts to purchase energy from resources with varying availability and production, such as solar, wind and hydroelectric facilities.
3CE enters into long-term power purchase agreements to ensure stable competitive rates for its customers and to comply with state law and voluntary targets for renewable and greenhouse gas (GHG) free products.

The following table represents the expected, undiscounted, contractual obligations outstanding as of September 30, 2024:

Year ending September 30,
2025 554,000,000$
2026 329,000,000
2027 265,000,000
2028 248,000,000
2029 270,000,000
2030-2053 3,299,000,000
Total $ 4,965,000,000

26 CENTRAL COAST COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023

11. JOINT VENTURE
3CE participates in a joint powers agreement (JPA) through the California Community Choice Financing Authority (CCCFA). CCCFA was formed as to assist its members by undertaking the financing or refinancing of energy prepayments through tax-advantaged bonds on behalf of one or more of the members by, among other things, issuing or incurring bonds and entering into related contracts with its members. Any debt or liability incurred by CCCFA on behalf of a member to prepay for renewable energy is not a debt or liability of that member. Furthermore, the assets of CCCFA in the form of prepaid energy or reserves held by the respective bond trustees for any prepayment transaction undertaken on behalf of a member does not constitute an asset or reserve of that member.

CCCFA issued the following bonds, excluding original issue premium, which are to be used to finance energy purchases that will be delivered to 3CE. No debt, liability, or obligation of CCCFA is a debt, liability, obligation of 3CE.

Deal Date issued Amount
2023F December 2023 647,750,000 $
3CE will purchase energy from CCCFA in the same manner as it purchases energy from other suppliers. 3CE purchased approximately $22,579,000 and $0 from CCCFA during fiscal years 2024 and 2023, respectively. The outstanding purchase commitments related to these financing facilities of $463,011,000 are included in Note 10. This amount represents executed energy contracts assigned to CCCFA at September 30, 2024. Additional contracts will be assigned throughout the full bond period.

Each member of CCCFA is responsible for paying an equal portion of CCCFA’s general and administrative operating costs as determined by its board. During the years ended September 30, 2024, and 2023, 3CE contributed approximately $30,000 and $18,000, respectively, to CCCFA to assist in its operating activities.

The financial statements of CCCFA are available online at http://www.cccfa.org/key-documents.html.

12. FUTURE GASB PRONOUNCEMENTS
The requirements of the following GASB Statements are effective for years ending after September 30, 2024:

GASB has approved GASB Statement No. 102, Certain Risk Disclosures, GASB Statement No. 103, Financial Reporting Model Improvements, and GASB Statement No. 104, Disclosure of Certain Capital Assets.

Management is evaluating the effect of implementation of these statements.

FY 2023-24 Supplemental Budgetary
Schedule, Investment Summary, and
Dashboard

1 ACCOUNTANTS’ COMPILATION REPORT

Board of Directors
Central Coast Community Energy
Management is responsible for the accompanying special purpose statements of Central Coast Community Energy (a California Joint Powers Authority) which comprise the budgetary comparison schedule for the periods ended September 30, 2024, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of the Authority.

Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.

Central Coast Community Energy’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.

Maher Accountancy
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com San Rafael, CA
November 26, 2024

Actual Budget Amount % Actual Budget Amount % Budget
Annual Budget
Less Actual
YTD

REVENUES AND OTHER SOURCES
Electricity sales $ 49,442,948 $ 51,386,828 $ (1,943,880) -4% $ 543,806,598 $ 563,933,447 $ (20,126,849) 96% $ 563,933,447 $ 20,126,849 Uncollectible accounts 7,126,858 (625,000) 7,751,858 -1240% 551,821 (7,500,000) 8,051,821 -7% (7,500,000) (8,051,821) Electricity sales, net 56,569,806 50,761,828 5,807,978 11% 544,358,419 556,433,447 (12,075,028) 98% 556,433,447 12,075,028 Investment and miscellaneous income 2,231,492 533,000 1,698,492 319% 12,991,876 6,400,000 6,591,876 203% 6,400,000 (6,591,876) Total revenues and other sources 58,801,298 51,294,828 7,506,470 15% 557,350,295 562,833,447 (5,483,152) 99% 562,833,447 5,483,152 EXPENDITURES AND OTHER USESCurrent Expenditures Cost of energy 94,239,267 77,293,336 (16,945,931) -22% 548,776,152 520,297,514 (28,478,638) 105% 520,297,514 (28,478,638) Salaries and benefits 769,615 794,756 25,141 3% 7,830,528 9,537,076 1,706,548 82% 9,537,076 1,706,548 Services and supplies 4,476,913 2,749,908 (1,727,005) -63% 24,749,921 32,998,857 8,248,936 75% 32,998,857 8,248,936 Total current expenditures 99,485,795 80,838,000 (18,647,795) -23% 581,356,601 562,833,447 (18,523,154) 103% 562,833,447 (18,523,154) Surplus (deficit) (40,684,497)$ (29,543,172)$ (11,141,325)$ 38% (24,006,306)$ -$ (24,006,306)$ -$ 24,006,306$ Annual

CENTRAL COAST COMMUNITY ENERGY

BUDGETARY COMPARISON SCHEDULE
Current Month and Year Ended September 30, 2024
Current Month Variance
Favorable
(unfavorable)
Year-To-Date Variance
Favorable
(unfavorable)

CCA Program surplus/(deficit)
per budgetary comparison schedule: (24,006,306)$
Adjustments needed to reconcile to the changes in net position in the Statement of Revenues, Expenses and Changes in Net Position:

Add back GASB 87 lease amortization not in operating budget 300,424 Change in Net Position (23,705,882)$

REVENUES, EXPENSES AND CHANGES IN NET POSITION

CENTRAL COAST COMMUNITY ENERGY

BUDGET RECONCILIATION TO STATEMENT OF
Year Ended September 30, 2024

Budget Item YTD Variance Comment
Electric Sales Revenue (3.6%) Sales revenue includes revenues actually billed to customers as well as estimated customer usage during the reporting period that is not yet billed.

Cost of Energy 5.5% Variances in this category are typically due to (1) timing difference between projected and actual REC deliveries, (2) variance from actual to anticipated market prices, and (3) variance from actual to expected volume used by customers. Cost of energy includes scheduling coordinator fees for budget purposes only.

Staffing (17.9%) Staffing expenses are under budget due to the timing of new hires.

Professional Services (56.3%) This category includes accounting, IT, technical and other consultants.

Legal Costs (20.9%) This category includes outside legal costs for regulatory and energy procurement needs.

Marketing and customer enrollment 37.4% Variance is mostly due to the lower than anticipated costs of recent customer enrollments.

Data Management Services 3.5% These fees non-discretionary and are charged on a per customer basis.

Utility Service Fees (3.2%) These are PG&E and SCE fees charged on a per customer basis.

Other General & Administrative (45.4%) This category includes occupancy costs, industry membership dues, and other general and administrative costs.

Energy and Related Programs (25.0%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items

CENTRAL COAST COMMUNITY ENERGY
October 1, 2023 through September 30, 2024

-66.6%
-52.3%
Act
Bud
$33.3
-$4.4
$62.7
$36.1
-$20.0
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
$544.4
$556.4
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual
Budget
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Actual (T48/T8) 422 393 409 399 358 367 360 388 389 434 434 402 Budget 452 459 444 420 402 416 419 383 386 405 423 427
0 50
100
150
200
250
300
350
400
450
500

CUSTOMERS

SALES VOLUME
402 GWh

STD MARGIN
-$26.5M (-67%)
Δ in NET ASSETS
-$40.7M
Cumulative YTD Electricity Sales
Cumulative YTD Direct Margin
(Electricity Sales less Cost of Energy)
Data Definitions:

CUSTOMERS: Count of active customers from Calpine.

REPORTED / SALES VOLUME: Best available estimate of actual meter volume. Currently based on T+8 SQMD Report and T+48 when available.

REVENUE: Total Operating Revenue, net of uncollectible, (excludes Interest income).

ELECTRICITY SALES: Sales from electricity (net of uncollectible).

STD MARGIN: Electricity Sales less cost of energy (Forecasting & scheduling included in Cost of Energy to match budget) ACTUAL: Same as sales volume above
BUDGET: Volumes from FY23/24 budget
Monthly Sales Volume (GWh)
Financial Dashboard: September 2024

CUSTOMERS
460,000
ACTIVE
September revenue of $58.8M accounts for
402 GWh in net retail consumption, 25 GWh
below budget.

YTD Electricity revenue is $544M compared
to budget of $556M. YTD Direct Margin
(defined as Electricity Sales less Cost of
Energy) of -$4.4M is below budget by
$40.1M driven by year-end REC and RA
activity.

The chart to the right shows volume
comparison to budgeted volume.

The charts below display cumulative
revenue and margin $ vs budget.
30%
47%
23%
36%
47%
17%
Res
Com
Ag
YTD Month
Revenue $58.8
C.O.E. $94.2
OpEx $5.2
Net Income -$40.7
-$37.7
-$26.5
Act
Bud
Margin $
10 33%
47%
21%
39%
45%
15%
Res
Com
Ag
YTD Month

REVENUE
$58.8M
Margin %

Return of Investments YTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CASH AND CASH EQUIVALENTSRiver City Bank/ Chase - Money Market and other Interest Earning AccountsFunds Invested - Average Balance 132,319,400$ 114,651,102$ 105,356,390$ 104,396,252$ 103,895,294$ 136,670,988$ 89,128,674$ 103,094,923$ 99,733,192$ 89,388,999$ 83,847,645$ 73,284,021$ Gains/Losses/Interest 4,143,997$ 406,536$ 345,045.39 356,733.82 348,153.12 328,669.77 467,310.22 292,100.83 359,957.02 342,604.48 323,544.31 306,632.12 266,709.39 Average APY 3.69% 3.61% 4.06% 4.00% 3.80% 4.10% 3.93% 4.19% 4.12% 4.34% 4.39% 4.37%INVESTMENTSRiver City Bank - Treasury-indexed productsFunds Invested - Average Balance 40,000,000$ 50,000,000$ 40,000,000$ 40,000,000$ 30,000,000$ 30,000,000$ 20,000,000$ 6,700,000$ -$ -$ -$ -$ Gains/Losses/Interest 1,277,633$ 178,385.54 213,485.85 236,035.13 205,868.28 193,103.80 116,602.81 103,270.38 30,881.04 - - - - Average APY 5.35% 5.12% 7.08% 6.18% 7.72% 4.66% 6.20% 5.53%RBC GAM / Principal Financal/ Schwab/FidelityFunds Invested - Average Balance 84,038,064$ 89,456,032$ 104,918,181$ 110,378,734$ 109,851,410$ 85,196,666$ 102,094,893$ 116,668,316$ 123,250,987$ 123,914,223$ 124,555,241$ 125,120,028$ Gains/Losses/Interest 6,246,237$ 351,852.83 417,968.37 462,148.76 463,382.88 411,214.03 409,319.23 398,176.83 488,291.25 481,788.55 572,560.60 582,989.80 1,206,544.05 Average APY 5.02% 5.61% 5.29% 5.04% 4.49% 5.77% 4.68% 5.02% 4.69% 5.54% 5.62% 11.57%

CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2023 through September 30, 2024

Current 0 - 30 Days 31 - 60 Days 61 - 90 Days > 91 Days A/R Balance 22,224,514$ 14,532,503$ 1,960,212$ 735,615$ 4,985,051$ 44,437,895$

CENTRAL COAST COMMUNITY ENERGY
Summary of Accounts Receivable, Net of Bad Debt Allowance As of September 30, 2024

Staff Report Item 10
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Inaara Muhammad, Manager of Energy Programs SUBJECT: Update on 3CE’s Energy Programs
DATE: April 9, 2025
RECOMMENDATION:

Receive an update on 3CE’s Energy Programs.

BACKGROUND:
3CE’s Energy Programs have been administered since 2019 to support 3CE’s mission by serving the Central Coast community with incentives to engage in electrification initiatives, strengthen the local economy, and reduce greenhouse gas emissions. The Energy Programs portfolio has undergone several iterations to improve community-wide accessibility and achieve parity for priority communities.

Currently, 3CE offers 11 programs and two pilots to support residential, commercial, and public agency electrification efforts in the transportation, building, and agricultural sectors.

DISCUSSION/ANALYSIS:

As part of 3CE’s commitment to customers, 3CE staff continually evaluate Energy Programs’ performance by tracking several key indicators and using this analysis to improve the impact of 3CE’s Energy Programs.

The first quarter of FY 2024-25 began with steady participation in 3CE's Energy Programs. This is in part due to the new Customer Relationship Management (CRM) system, which allowed for no disruption to the agency’s energy programs offerings during the transition to a new fiscal year. The Energy Programs Update for Q1 FY 2024-25 (Attachment 1) shows highlights of the agency’s programs’ impact in the first quarter.

3CE’s Energy Programs Portfolio Analysis Update (Attachment 2) gives a more detailed status update of the individual Energy Programs for FY 2024-25 with data collected through January 2025. These status updates share a variety of program performance metrics including equipment incentivized, housing units electrified, dollars spent, and performance on equity (e.g., incentives and support for income-qualified customers.) The update also describes strategic initiatives currently underway to enhance the Energy Programs portfolio through pilots and new program offerings. Below are highlights of several strategic initiatives across Energy Programs’ focus areas.  Transportation Electrification
- 3CE recently received a $68,000 grant from the San Luis Obispo County Air Pollution Control District for 3CE’s EV Charger Asset Pilot at its San Luis Obispo office. The grant will alleviate approximately 60% of the project’s equipment purchases and installation costs. The project is under construction with Level 2 chargers anticipated to be operational in Q2 of 2025.
 Building Electrification
- On February 5th, 3CE staff presented findings from its November community listening sessions concerning its Electrify Your Home Program to the Community Advisory Council (CAC), along with a preliminary improved program concept, which includes contractor education, home assessments, a direct install pilot, and additional rebates. The improved program concept will continue to be developed with feedback from a second round of listening sessions, which will be held on April 10th at the Watsonville Civic Plaza Community Room, and April 17th at the Goleta Valley Community Center.  Ag Electrification
- 3CE staff is actively conducting outreach to recruit participants in 3CE’s Hourly Flex Pricing Expanded Pilot 1. The pilot project is designed to enable significant customer savings and operational benefits to California’s electric grid through real-time, dynamic price signals and automated control of equipment for eligible agricultural customers. 3CE is also accepting applications for the Hourly Flex Expanded Pilot 2, which offers day-ahead price signals for residential and commercial customers.  Demand Response
- The Residential Battery Rebate Program introduced a new scheduling assistance service to help customers set their battery systems to discharge during peak hours. So far, 25 customers have successfully scheduled their battery systems. Staff are conducting direct outreach to rebate applicants to assist and ensure they meet the Program’s discharge requirements.

FISCAL IMPACT:

There is no fiscal impact associated with this report and update.

CONCLUSION:
3CE’s Energy Programs support California’s Central Coast communities by providing funding and services to accelerate regional electrification, reduce greenhouse gas emissions, and benefit local economies and customers.

ATTACHMENT(S):

1. Energy Programs Update for Q1 FY 2024-25

2. 3CE Energy Programs Portfolio Analysis Update

Energy Programs Updates
FY 2024-25 Q1
We serve our central coast community by providing reliable, affordable, clean electricity and electrification programs to reduce greenhouse gas emissions and strengthen our local economy.

Over 142 MT CO2e avoided as of 1Q25
82 gas cars off the road 4
with support of
Electrify Your Ride
ag equipment transitioned
to electric alternatives with
support of Agricultural
Electrification Program
*calculated using EPA and CARB reference data
• City of Salinas
• City of San Luis Obispo
• City of Soledad
• County of Santa Barbara
Plan Your Fleet
County of Santa Barbara .................. 60 L2s
Charge & Electrify Your Fleet
Bee Farm in Santa Barbara
$64,829
Ag Electrification Program
ADU in San Luis Obispo
$165,000
New Construction Elec. Program
13 kW battery in Monterey
$6,500
Residential Battery Rebate Program
Reach Codes
City of Goleta - New Construction (underway)
City of San Luis Obispo - Existing Buildings Update (underway) City of Santa Cruz - Existing Buildings (underway)
County of Monterey - EV Charging Infrastructure (underway)

3CE’s Energy Programs Portfolio Update
This report provides an update on participation in Central Coast Community Energy’s (3CE) Energy Programs Portfolio with data collected through February 2025.

TRANSPORTATION ELECTRIFICATION
Electrify Your Ride Program
3CE’s Electrify Your Ride (EYR) program incentivizes residential and commercial electrification through rebates for the purchase or lease of an electric vehicle (EV), for purchase of Level 2 and Direct Current Fast Chargers, and for electrical work necessary to install chargers. In addition, EYR provides technical assistance for EV infrastructure build-out at publicly accessible commercial sites and at multifamily residential properties. The FY 2024-25 budget for EYR is $4.1 million.

Incentives are available on a first-come, first-served basis until funding is fully awarded. To promote greater adoption of transportation electrification in disadvantaged and low-income communities, higher incentive amounts are available for income-qualified customers and multifamily-unit buildings.

In FY 2024-25, EYR has distributed over $1,215,371 in rebates across five counties, supporting over $16.1 million in EV and EV charger purchases. The EV purchases have resulted in over 1,102 MT CO2e avoided, which is equivalent to removing 257 gas cars off the road for one year.

Figure 1 (above): EYR funds distributed by county in FY 2024-25.

Figure 2 (above): EYR funds distributed by incentive type in FY 2024-25.

Figure 3 (above): EYR funds distributed to income-qualified applicants in FY 2024-25.

Tier 1 = 201 - 400% FPL; Tier 2 = < 200% FPL; Standard = Non-Income Qualified Applicants Electric Bus Program
3CE’s Electric Bus program provides public schools/school districts, farmworker transit organizations, and public transit agencies enrolled in 3CE service the opportunity to receive incentives to support the purchase of up to five all-electric buses. In FY 2024-25, the budget for the Electric Bus program is $1.4 million.

Applications are accepted until funds are fully distributed. Applicants are encouraged to apply for rebates following the purchase and delivery of an electric bus. Notices of Qualification (NOQ) may be requested to assure applicants of their eligibility status. Program recipients may elect for funds to be distributed directly from 3CE to the bus manufacturer upon receipt of the final invoice. Applicants are encouraged to stack/leverage other incentive funds and no matching fund restrictions apply.

To date, 3CE has distributed $537,723 in rebates for four electric school buses in four counties. These rebates have helped enable over $1.6M in electric bus purchases. 3CE staff continue to actively engage with the community to promote the program to interested schools, organizations, and transit authorities.

County Applicant Type Total Funding
Total # of
E-Buses
% of Funding to Title
1 School or Low-Income Community
Monterey 1 School District $200,000 1 100%
San Benito 1 School District $75,167.98 1 0%
San Luis Obispo N/A - - -
Santa Barbara 1 School District $62,555.17 1 100%
Santa Cruz 1 School District $200,000 1 0%
Total: 4 School Districts $537,723.15 4 50%
Table 1 (above): Electric Bus Program projects awarded in FY 2024-25.

Plan Your Fleet Program
3CE’s Plan Your Fleet (PYF) program provides planning, design, and engineering consulting to Member Agencies to accelerate fleet electrification and EV charging infrastructure development across the Central Coast. The FY 2024-25 budget for Plan Your Fleet is $650,000.

The following jurisdictions have engaged with the Plan Your Fleet program so far, this fiscal year:
 City of Atascadero
 City of Capitola
 City of Carmel-by-the-Sea
 City of Goleta
 City of Guadalupe
 City of Monterey
 City of Salinas
 City of San Luis Obispo
 City of Soledad

 County of Santa Barbara
Additional jurisdictions are planning to engage in the coming months and will be included in the report as each scope is finalized.

Charge Your Fleet Program
3CE’s Charge Your Fleet (CYF) program provides rebates for the purchase and installation of Level 2 or Level 3 (DC Fast Chargers) EV chargers. Member Agencies are eligible for up to $150,000 in funding support each fiscal year. 3CE’s 2024-25 CYF budget totals $1.0 million.

In FY 2024-25, the program has incentivized 68 chargers totaling nearly $173,000 and is actively engaging with additional Member Agencies who are in the process of installing EV chargers, including the City of Monterey and City of Carmel-by-the-Sea. 3CE expects increased participation later in the fiscal year as Member Agencies who participated in FY 2023-24's Plan Your Fleet program implement their plans.

Member Agency Equipment Type Quantity Total Incentive
CITY OF SAN LUIS OBISPO Level 2 8 $22,884.25
COUNTY OF SANTA BARBARA Level 2 60 $150,000.00
TOTAL 68 $172,884.25
Table 2 (above): Charge Your Fleet projects awarded in FY 2024-25.

Electrify Your Fleet Program
3CE’s Electrify Your Fleet (EYF) program incentivizes Member Agencies to purchase or lease electric fleet vehicles. Applications are accepted until program funds are spent. 3CE Member Agency applicants are eligible to be awarded up to $150,000 in EYF incentives in a single program year. In FY 2024-25, 3CE has budgeted $1.1 million for EYF.

In FY 2024-25, EYF has received two applications to date. Staff are actively engaging with Member Agencies who are in the process of purchasing electric fleet vehicles including the City of Carpinteria, City of Goleta, City of San Luis Obispo, City of San Juan Batista, City of Santa Cruz, City of Santa Maria, City of Watsonville, and County of Monterey. 3CE expects increased participation later in the fiscal year as Member Agencies who participated in FY 2023-24's Plan Your Fleet program implement their plans.

Member Agency Equipment Type Quantity Total Incentive

CITY OF SANTA MARIA Battery Electric Vehicle 2 $10,000.00 TOTAL 2 $10,000.00
Table 3 (above): Electrify Your Fleet projects awarded in FY 2024-25.

EV Charger Asset Pilot
The EV Charger Asset Pilot will improve access to public and workplace charging through 3CE owned and operated Level 2 EV chargers and Direct Current Fast Chargers.

On December 11, 2024, the Policy Board approved an EV Charger Asset Pilot at 3CE’s offices located at 1026 Palm Street in San Luis Obispo. The project will include five parking spaces serviced by three L2 charging stations. The EV charging stations at the 1026 Palm Street office parking lot will allow 3CE to evaluate workplace charging and possible synergies with innovative energy management approaches such as vehicle-to-load charging. Staff recently received a grant from the SLO APCD to cover approximately 60% of equipment purchase and installation costs. Construction is underway.

BUILDING ELECTRIFICATION
Electrify Your Home Program
The Electrify Your Home (EYH) program provides incentives to contractors enrolled in the TECH Clean California (TECH) program for installation of all-electric heat pump water heating and HVAC systems in existing single and multi-family buildings. EYH reduces purchase costs to 3CE customers, incentivizing making the switch to all-electric heat pump technology. The FY 2024-25 budget for EYH is $720,000.

Contractors enrolled in TECH are provided education and training on electrification design and specifications, heat pump installation, building science, and sales and marketing for electric heat pumps at no cost. There are currently 75 licensed contractors enrolled in the TECH program that work in 3CE’s service area.

On November 13, 2024, the Operations Board approved an amendment to 3CE’s contract with Energy Solutions, 3CE’s program administrator for Electrify Your Home. The amendment increased the not-to-exceed amount listed in the contract by $990,000 and extended the term of the agreement by eight

months to allow for continued and uninterrupted services to support Electrify Your Home through the end of FY 2024-25.

In FY 2024-25, the EYH program has so far distributed $428,250 in rebates to support the installation of 85 Heat Pump HVAC units and 44 Heat Pump Water Heater Units. 3CE County Heat Pump HVAC
Units Installed
Heat Pump Water
Heater Units Installed
MONTEREY 27 17
SAN LUIS OBISPO 1 9
SANTA BARBARA 1 13
SANTA CRUZ 56 5
Table 4 (above): Electrify Your Home installations by county in FY 2024-25. 3CE staff are actively collaborating with the Community Advisory Council to host community listening sessions to gather feedback on the current Electrify Your Home Program and potential improvements to the program’s design. Two listening sessions were hosted in November, and two additional listening sessions are scheduled in April. Community feedback from the events will inform future program improvements for the Electrify Your Home across five program design focus areas: Awareness, Evaluation, Installation, Rebates, and Post-Install Monitoring.

New Construction Electrification Program
The New Construction Electrification Program (NCEP) provides housing developers and homeowners with incentives to build all-electric single and multifamily housing, including market- rate, affordable, farmworker, and disaster -rebuild housing types as well as Accessory Dwelling Units (ADUs). Qualifying projects must be fully electric including appliances for space heating, water heating and cooking. The FY 2024-25 budget for NCEP is $1.0 million.

So far in FY 2024-25, the program has distributed $549,500 across four counties to support construction of 195 units.

3CE County
Market-Rate
Housing
Affordable
Housing
Accessory
Dwelling Units
(ADUs)
Disaster
Rebuilds
Total Units
Incentivized
MONTEREY - - 2 - 2

SAN BENITO - - - - -
SAN LUIS OBISPO 1 25 7 - 33
SANTA BARBARA - - 4 - 4
SANTA CRUZ - 152 2 2 156
Table 5 (above): All-electric construction supported via NCEP in FY 2024-25.

Reach Code Program
3CE’s Reach Code program launched October 1, 2022, providing local cities and counties no-cost technical assistance to help adopt and implement reach codes, including stakeholder outreach support. Services include presenting to key stakeholders, technical consultation, developing customized ordinances, reviewing staff presentations and reports, and developing implementation tools to help Member Agencies enforce reach codes. In FY 2024-25, 3CE has budgeted $150,000 for the Reach Code program.

So far in FY 2024-25, 3CE is providing Reach Code assistance to the following Member Agencies:

Member Agency Reach Code Type
City of Goleta New Construction (complete)
City of San Luis Obispo Existing Buildings (underway)
City of Santa Cruz Existing Buildings (underway)
Table 6 (above): Reach Codes participation in FY 2024-25.

AGRICULTURAL ELECTRIFICATION
Agricultural Electrification Program
3CE’s Agricultural (Ag) Electrification program provides rebates to agricultural customers for replacing fossil fuel powered equipment with electric powered alternatives including farm tools, irrigation pumps, vehicles, and more. Enhanced incentives are available for small businesses and for businesses replacing

equipment damaged or destroyed by a declared natural disaster. The program also offers technical assistance for EV infrastructure buildout at agricultural customer sites. The FY 2024-25 budget for Ag Electrification is $800,000.

Rebates for equipment with higher estimated GHG emissions avoidance and those benefiting small to medium sized agricultural businesses are supported with greater incentive levels. 3CE covers up to 50% of the cost for ag equipment, providing up to $15,000 for smaller “Tier 1” equipment and up to $75,000 for larger “Tier 2” equipment. Program funds are offered as a post-purchase rebate, with up to two rebates per customer per fiscal year.

So far in FY 2024-25, 3CE has distributed $302,870.55 in rebates to support eight equipment purchases.

These rebates have helped enable over $730,000 in all-electric agricultural equipment.

Electric Ag Equipment Qty Incentivized Recipients
Excavator 2  Bee Farm in Santa Barbara County
 Winery in Santa Cruz County
Tractor (standard) 4  Winery in Monterey County
 Flower Farm in Santa Barbara County
 Ranch in San Benito County
 Avocado Orchard in Santa Cruz County
Forklift 1  Farm in San Benito County
Irrigation Pump 1  Farm in Monterey County
Table 7 (above): Agricultural Electrification projects awarded in FY 2024-25. 100% of Agricultural Electrification Program incentives distributed so far in FY 2024-25 have been to small businesses who are 3CE customers.

County % of incentives distributed to small businesses
SAN BENITO 100%
SAN LUIS OBISPO 0%
SANTA BARBARA 100%
SANTA CRUZ 100%
MONTEREY 100%
TOTAL 100%
Table 8 (above): Agricultural Electrification projects awarded to small businesses in FY 2024-25.

DEMAND RESPONSE / LOAD MANAGEMENT
Residential Battery Rebate Program
3CE’s Residential Battery Rebate program launched on July 16, 2024, to incentivize use of residential behind-the-meter battery storage systems. Rebates are provided for purchase of eligible batteries, qualifying installation hardware, and labor directly related to the battery system's installation. 3CE has set a goal of issuing four hundred rebates per fiscal year, which equates to approximately 2.6 megawatts (MW) of load shifted, and an annual expenditure of $2M.

The program offers a $300 per kilowatt hour (kWh) base rebate for customers. A $500 per kilowatt hour (kWh) rebate is offered to Net Energy Metering (NEM) 1.0 and NEM 2.0 tariff customers who elect to transition to Net Billing Tariff (NBT) early. Additionally, the program offers a $500 per kilowatt hour (kWh) rebate for customers who are enrolled in the Medical Baseline program and are reliant on electricity to power medical devices. To promote adoption in disadvantaged and low-income communities, the program also offers a $500 per kilowatt hour (kWh) rebate for customers enrolled in CARE or FERA payment assistance programs.

In February 2025, staff introduced a new scheduling assistance service to help customers set their battery systems to discharge during peak hours of 4:00 pm to 9:00 pm. Twenty customers have signed up to receive assistance. Staff are conducting direct outreach to rebate applicants to ensure they meet the program’s discharge requirements.

Also as of February 2025, 3CE has received 167 applications for the program. Since launching, 3CE has distributed $254,600 in rebates to customers, with approximately 356 kWh of load shifted daily during the peak period of 4:00 pm to 9:00 pm.

Figure 4 (above): kWh of load shifted daily during the peak period of 4:00 pm to 9:00 pm per month.

Hourly Flex Pricing Pilots 1 and 2
3CE, in partnership with PG&E and its vendors, has officially launched its Hourly Flex Pricing Pilots. The program offers eligible agricultural, commercial, and residential customers a way to lower their energy costs by locking into hourly energy prices forecasted up to one week in advance, then shifting load accordingly, which will be tracked on a monthly performance bill. At the end of each 12-month participation period, any total cost savings through hourly price-based load shifting would be credited to the customer via a check from 3CE.

The Hourly Flex Pricing Pilot 1 will be for agricultural 3CE customers and will include a one-time rebate for purchasing automation technology and software that responds to price signals, such as a controller for an irrigation pump.

The Hourly Flex Pricing Expanded Pilot 2 will be for commercial and residential customers. To date, 3CE has received over 10 residential applications, six of which have been accepted to the expanded pilot.

OTHER STRATEGIC INITIATIVES
Customer Relationship Management System Integration
The new Customer Relationship Management (CRM) tool for program applications and management was successfully launched on October 1st, 2024. Existing program applications were kept open during the

transition from FY 2023-24 to the current fiscal year. Additional usability features for 3CE are under development.

Staff Report Item 11
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Jerri Strickland, Director of Regulatory Affairs & Compliance SUBJECT: Regulatory Update
DATE: April 9, 2025
RECOMMENDATION:

This recommends the Operations Board of Directors receive the Regulatory Update.

DISCUSSION/ANALYSIS:

Please find attached 3CE’s Regulatory Update, providing the latest information on the following:
 Resource Adequacy (RA)
 Provider of Last Resort (POLR and Emergency Transition Planning  Load Management Standards (LMS) and Real-Time Pricing  New Power Charge Indifference Adjustment (PCIA) Rulemaking  Integrated Resource Planning (IRP)
 Interconnections
 PG&E Rule 30 Application for Transmission Service
 Energy Resources Recovery Account (ERRA) Forecast
 General Rate Cases
FISCAL IMPACT:

No financial impact by receiving this report.

CONCLUSION:

This is an informational item only.

ATTACHMENT(S):

1. Regulatory Update

Regulatory Update
April 9, 2025

2 Table of Contents
REGULATORY UPDATE.................................................................................................................................................... 3 Resource Adequacy (RA) -.............................................................................................................................................. 3 Provider of Last Resort (POLR) and Emergency Transition Planning –...................................................... 3 Load Management Standards (LMS) and Real-Time Pricing -......................................................................... 4 New Power Charge Indifference Adjustment (PCIA) Rulemaking –.............................................................. 4 Integrated Resource Planning (IRP) -........................................................................................................................ 5 Interconnections - .............................................................................................................................................................. 6 PG&E Rule 30 Application for Transmission Service –....................................................................................... 6 Energy Resources Recovery Account (ERRA) Forecast – .................................................................................. 7 General Rate Cases —....................................................................................................................................................... 8

3 REGULATORY UPDATE
Resource Adequacy (RA) - R.23-10-011
Issue
The Resource Adequacy (RA) program is the California Public Utilities Commission’s (CPUC) main grid reliability planning program. All load serving entities (LSEs) under the CPUC’s jurisdiction, including CCAs, must demonstrate purchase of a specified amount of eligible RA generation capacity each month and year to comply with RA program requirements. Increasing demand for and a decreasing supply of eligible RA capacity over the past five years have resulted in sharply increased prices and unprecedented difficulty procuring sufficient RA to achieve compliance. Over the past year the CPUC has also sought to tie RA compliance to other, unrelated functions such as CCA expansion into new communities.

Status
Parties have submitted Track 3 RA proposals addressing a wide range of topics, including modifications to the new 24-hour requirement counting method called the Slice-of-Day framework, the Planning Reserve Margin (PRM) for 2026 and 2027 which is the amount of energy needed to be procured in excess for reliability called the, accreditation of long duration energy storage resources, and approaches to an unforced capacity (UCAP) methodology to account for historical forced outage rates in RA capacity values for certain resources. 3CE worked with CalCCA to develop Track 3 proposals to reintroduce hourly load obligation trading and formalize counting rules for co-located resources. 3CE and San Jose Community Energy, a fellow CCA, filed joint comments, on March 17, urging the Commission to support proposals that increase reliability and prioritize customer affordability, maintain the current PRM rather than increasing it without a robust analysis, and to revise its current study to address errors identified by stakeholders.

Next Steps
The CPUC will issue a proposed Track 3 decision in May, with a final adoption set for June.

Provider of Last Resort (POLR) and Emergency Transition Planning – R.21-03-011 Issue
The Provider of Last Resort (POLR) is the backstop entity that provides electric service to customers of a load serving entity if that LSE fails suddenly. This role has historically been held by the investor-owned utilities (IOUs, namely Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric), but this proceeding is establishing a process to allow CCAs and other non-IOU LSEs to become POLR in their service areas. 3CE does not aim to be the POLR but wants to ensure the process is fair for all LSEs and avoids competitive issues. This proceeding also considers rules designed to prevent LSE failures that have various implications for 3CE finances and operations. This includes changes to how much money CCAs must post as insurance against their own failure (called the Financial Security Requirement or FSR).

Status
On March 10, the California Public Utilities Commission (CPUC) approved CalCCA’s Tier 2 Advice Letter on requirements for newly forming CCA financial reporting requirements. During Phase 1 of the proceeding, 3CE had assisted in shaping the requirements to ensure they aligned with current statutory obligations and avoided expanding the CPUC’s authority when reviewing CCA implementation plans.

Phase 2 of the proceeding consist of two tracks: the first will address primary threshold questions regarding the authority of the CPUC and non-IOU POLRs, while the second will focus on the regulatory framework and application process for non-IOU entities to become POLRs. Party comments in Phase 2

4 have indicated that no non-IOU entity is currently interested in taking on the POLR role, so CalCCA is advocating that the CPUC defer decisions on granular issues until parties’ express interest in transferring POLR obligations. CalCCA opposes stakeholder arguments that propose broader CPUC authority over a non-IOU POLR and advocates that if the CPUC does intend to issue a decision on jurisdictional questions, legal briefs should be required.

Next Steps
3CE is monitoring the proceeding for the CPUC’s issuance of a Ruling on threshold issues and determination on whether legal briefs are needed in Q1 or Q2 of 2025. 3CE and CalCCA will continue to advocate for the legislatively protected autonomy of CCAs.

Load Management Standards (LMS) and Real-Time Pricing - 23-LMS-01 Issue
The California Energy Commission’s (CEC) updated Load Management Standard (LMS) regulations now require IOUs, municipal utilities, and CCAs with load greater than 700 GWh/year to upload time-dependent rates to the CEC’s Market Informed Demand Automation Server (MIDAS) platform, develop an LMS Compliance Plan (LMS Plan) by March 2024, and present to their governing bodies, for approval by the CEC, at least one hourly marginal cost based rate option (often referred to as a real-time rate) for their customers by 2025. The LMS requirements also request the LMS LSEs to create a Single-Statewide Tool (SST) for customers to be able to compare and change rates.

Status
In February 2024, 3CE’s Policy Board approved 3CE’s LMS Plan. In early February 2025, 3CE met with the CEC, which commended 3CE’s programs for shifting load to more affordable and lower-emission times.

The CEC has provided both informal and formal pathways for CCAs to update LMS Plan. 3CE expects a formal request for minor updates and revisions to the Plan by Q2 2025. 3CE’s CEO, along with other CCA CEOs, have had ongoing dialogue with CEC Commissioner J. Andrew McCallister to advocate for a measured approach to LMS regulations, cautioning that overly stringent requirements may hinder innovation.

Next Steps
3CE is monitoring for the formal request to update its LMS Plan, which will be issued within the CEC’s LMS docket. 3CE will respond with an update to its Plan within 90 days of the request.

New Power Charge Indifference Adjustment (PCIA) Rulemaking – R.25-02-005 Issue
On February 20, the CPUC opened a new proceeding to update policies and procedures related to the IOUs’ Energy Resource Recovery Accounts (ERRA) and the Power Charge Indifference Adjustment (PCIA).

The PCIA is a fee that all customers, bundled or unbundled, pay to ensure the IOUs remain indifferent to the loss of customers for legacy procurement done prior to customers having the choice to choose their energy provider. The rulemaking will address near- and long-term changes impacting the PCIA, a ratemaking element designed to ensure customer indifference to retail load departure. The CPUC calculates the PCIA using market price benchmarks (MPBs) to establish the market value of the IOUs’ PCIA-eligible portfolio. However, in recent ERRA proceedings, the IOUs have proposed new policies related to the calculation of MPBs, citing concerns with the accuracy and volatility of the current methodology.

5 Status
Track 1 is reviewing potential modifications to MPB calculations, aiming for a May 2025 decision for inclusion in 2026 ERRA forecasts. Proposed changes include adjusting transaction data, considering monthly or seasonal MPBs, and consolidating RA attributes into a single MPB calculation. Track 2 will focus on broader, long-term improvements to ERRA and PCIA processes, IOU rate forecasts, and mitigating rate volatility. CalCCA filed comments on the Order Instituting Rulemaking (OIR) on March 17.

The comments advocated that the Commission should approach the PCIA in the context of its obligation to ensure rate indifference for both CCA and IOU customers and support CPUC proposals that would increase the accuracy of the PCIA calculation. The IOUs also filed comments stating that the current PCIA methodology leaves them unable to hedge their portfolio and the MPB practices allow for market manipulation.

Next Steps
3CE is assisting CalCCA in drafting reply comments, due April 2. In response to the IOUs, the comments focus advocating that the rules governing the IOUs Bundled Procurement Plans and portfolio management need to support the effective implementation of a fair and equitable PCIA. The comments also urge the Commission to set the MPBs in a manner that accurately reflects the current market conditions, as they are intended to do. Additionally, the comments offer alternative solutions should the Commission choose a different approach: the MPBs should be based solely on the most recent year of transactions, but if an extension is necessary, it should be no longer than three years. Lastly, the comments emphasize the importance of maintaining the flexibility of the PCIA, allowing it to swing both positively and negatively, and stress that all utility-owned generation contracts in the PCIA portfolio should eventually phase out.

Integrated Resource Planning (IRP) - R.20-05-003
Issue
Integrated Resource Planning (IRP) is the CPUC’s greenhouse gas (GHG) reduction planning program.

LSEs must submit IRPs every two years demonstrating that planned future procurement will produce GHG emissions below an assigned benchmark while contributing to a resource fleet that meets sector wide GHG targets and maintaining grid reliability. Previous IRP cycles have produced three procurement mandates, which apply to 3CE and other CCAs. The CPUC’s Amended Scoping Memo outlines plans to address additional issues in the IRP proceeding, including the implementation of Assembly Bill (AB) 1373, which allows the Commission to request the Department of Water Resources (DWR) serve as a central procurement entity for long-lead time (LLT) resources, and the development of the Reliable and Clean Power Procurement Program (RCPPP) to replace the current ad hoc mandate structure.

Status
The CPUC voted to approve the 2025-2026 Transmission Plan Portfolios (TPPs) for use by CAISO in determining needed upgrades or additions to the transmission system. The Decision adopts two portfolios; a base case with approximately 63 GW of new storage and clean energy to come online by 2035 and a sensitivity portfolio that incorporates the maximum amount of long lead time (LLT) resources ordered for DWR procurement. The Decision requests that CAISO reserve deliverability for the full amount of geothermal, biomass, offshore wind, and non-battery long-duration energy storage (LDES) resources in the base case and recommends that CAISO study, but not yet implement, solutions to bring out-of-state wind resources into the CAISO balancing area. CPUC President Alice Reynolds also requested DWR to exercise its CPE function for LLT Resources with solicitations beginning in late 2026.

6 Separately, the LDES Council filed a Petition for Modification (PFM) to the CPUC’s mid-term reliability (MTR) decision (D. 21-06-035) that ordered procurement of LLT resources including LDES, requesting language to clarify that LSEs may not meet the LDES requirement by reducing the full potential maximum capacity of a storage resource and extending the delivery period. While the PFM would not impact 3CE’s compliance with the MTR order, 3CE worked with CalCCA to develop comments opposing the PFM given the original decision language is unambiguous and changes to a 2021 decision now would constitute retroactive rulemaking.

Next Steps
If the results of CAISO’s base case analysis show the need for additional transmission, CAISO will submit projects for approval by its Board of Governors in Spring of 2026. 3CE anticipates the Commission to respond to the LDES PFM and publish the RCPPP within Q1 or early Q2 of 2025. Internally, 3CE is initiating work on its next IRP filing, due to the CPUC on November 1, 2025. The IRP filing will outline 3CE’s procurement planning for the next 10 years and how 3CE will achieve or exceed mandated GHG-reduction targets.

Interconnections - IPE 2023
Issue
The California Energy Commission’s (CEC) 2023 Integrated Energy Policy Report (IEPR) identifies interconnection delays as a significant barrier to achieving California’s electrification and decarbonization goals. Ongoing initiatives led by various entities are working to address this issue and streamline processes for connecting clean resources to the grid. One such effort is CAISO’s 2023 Interconnection Process Enhancements (IPE) initiative, focused on enhancing coordination of resource procurement, interconnection, and transmission planning to achieve state reliability and policy needs.

Status
CAISO has published its final proposal for Track 3 of the IPE initiative, which modifies the process for allocating Transmission Plan Deliverability (TPD) to resources that support resource adequacy. The proposal prioritizes TPD for projects with signed Power Purchase Agreements (PPAs) and offers a pathway for projects without PPAs to receive conditional allocations. Despite stakeholder opposition, the proposal eliminates opportunities for energy-only (EO) projects to seek deliverability beyond pre-cluster 15 projects. In response to CalCCA’s request to allow EO projects to submit new interconnection requests after achieving commercial operation, CAISO defers this consideration to a future IPE initiative.

Next Steps
CAISO will seek approval for Track 3 IPE initiatives from the CAISO Board of Governors on March 27. If approved, the new TPD allocation process would begin in 2027.

PG&E Rule 30 Application for Transmission Service – A.24-11-007 Issue
On November 21, 2024, PG&E submitted an Application to the CPUC requesting approval of a new rule for non-residential customers requesting interconnection at transmission-level voltages, citing a recent increase in customers such as data centers requesting transmission-level interconnections. Current PG&E rules are focused on distribution-level interconnections. Under the proposed rule, the transmission-level customer would pay interconnection costs in advance until their forecasted load materializes, at which point the costs would be collected through rates. 3CE has spearheaded a joint CCA coalition to participate in the proceeding to ensure that any resulting rule change supports affordability, maintains competitive neutrality, and equitable treatment of all interconnection requests.

7 Status
3CE and 5 other CCAs (Joint CCAs) have engaged with PG&E’s Application to raise important issues for consideration within the proceeding, including safeguards against PG&E’s inherent market power advantages, collaboration with CCAs, affordability, and cost allocation. The Commission issued a scoping ruling setting an anticipated Decision by March 2026. Concurrently, PG&E has filed a Motion for an Interim Implementation of Rule 30 prior to a Final Decision on the original Application. The Joint CCAs have commented on the Motion that PG&E has not shown an extraordinary need to implement Rule 30 prior to a full Commission review.

Next Steps
Testimony will be due June 30. In the meantime, Joint CCAs continue to work with PG&E to address the primary concerns of customer equity considerations, competitiveness issues, and data sharing needs for grid reliability.

Energy Resources Recovery Account (ERRA) Forecast – A.24-05-009; A.24-05-007 Issue
ERRA forecast applications are filed annually by IOUs to look ahead at energy procurement-related revenue requirements, including the allocation of costs across Power Charge Indifference Adjustment (PCIA) vintages. CCAs participate through CalCCA to ensure: (1) accuracy of forecast account balances, rates, and cost calculations; (2) proper attribution of PCIA vintage; (3) proposer attribution between bundled and unbundled customers; (4) appropriateness of IOU proposals within the context of an ERRA forecast proceeding.

PG&E Status:

The CPUC approved the Revised PD in PG&E’s ERRA Forecast proceeding on December 19, 2024. The revisions did not impact the CCA’s key concerns, which were to prevent the adoption of PG&E’s RA and RPS market-price benchmark (MPB) mitigation proposals and to secure the CPUC's approval of CalCCA’s common cost allocation proposal. President Reynolds highlighted that IOU rate decreases would result in semi-annual climate credits for customers in 2025, ranging from $112 to $162. PG&E filed its final Annual Electric True-up (AET) Advice Letter on December 30, 2024, reflecting trued-up 2024 costs and the new rates effective January 1, 2025. The AET revealed a 0.7% decrease in PG&E's bundled system average rates and a 2.8% decrease in delivery rates. CalCCA has requested work papers from PG&E to further analyze the impacts on the PCIA and will share this information with PG&E CCAs.

CalCCA’s key issues in the proceeding were (1) avoid a structural change to MPBs for RA and RPS, and (2) advocating against the adoption of a common cost allocation proposal to distribute administrative generation costs across PCIA vintages by gross revenue requirement. The CPUC's first PD, issued on November 25, 2024, rejected structural changes to the MPBs, which would have added ~$1 billion in costs to the PCIA. The PD did adopt a common cost allocation proposal but agreed with CalCCA that it should not apply to 2024 costs. CalCCA filed Comments on December 2, 2024, supporting the rejection of MPB changes and opposing the approval of its common cost allocation proposal. CalCCA filed Reply Comments on December 5, 2024, refuting claims about cost shifts and reiterating its stance on excluding the new cost allocation methodology from 2024.

SCE Status:

The CPUC approved a revised PD for SCE’s ERRA Forecast at its December 19, 2024, voting meeting, with

8 President Reynolds noting IOU rate decreases and semi-annual climate credits for customers in 2025 ranging from $112 to $162. SCE submitted its final AET on December 30, 2024, implementing the Final Decision and new rates starting January 1, 2025. SCE’s bundled system average rate increased by 0.3%, and CalCCA is requesting workpapers to further analyze the impacts on the PCIA. The SCE CCAs’ and CalCCA’s key issues were the rejection of two SCE proposals: (1) the RA Categorization Proposal, which would categorize RA retained for system use at the lower local RA MPB, and (2) the SOD RA Valuation Proposal, which adjusts how RA quantity is calculated in valuing SCE’s PCIA RA portfolio.

The CPUC issued an initial PD on November 25, 2024, with mixed outcomes. While the CPUC sided with SCE on the RA Categorization Proposal, CalCCA argued that the categorization did not align with how RA is used, and the PD lacked analysis explaining the rationale behind the decision. The CPUC stated that further changes to RA MPBs would be considered in a future rulemaking. On the SOD RA Proposal, the CPUC adopted it, agreeing with CalCCA that it benefits CCA customers. CalCCA filed Comments on December 2, 2024, recommending that the RA Categorization Proposal be rejected, or if adopted, applied only prospectively or up to SCE’s CPE local procurement obligation. CalCCA did not file Reply Comments, while SCE responded by defending retroactive ratemaking in the RA Categorization Proposal, citing a 1978 case that may complicate future decisions on RA.

Next Steps
3CE and CalCCA will continue to address MPB reform proposals raised in the SCE & PG&E 2025 ERRA Forecast cases in the new PCIA Rulemaking (R. 25-02-005) at the CPUC. The 2025 ERRA Forecast Cases are now closed and PG&E and SCE will file their next Forecast Applications for their 2026 generation rates in May of 2025.

General Rate Cases — A.24-09-014; A.24-03-019
Issue
In four-year cycles, the IOUs submit General Rate Case (GRC) applications to adjust rates and charges for electric and gas service. The CPUC conducts GRCs in two phases, using Phase I to set the total amount each IOU is authorized to collect and Phase 2 to determine the cost allocation and rate schedules for each customer class. All CCAs participate jointly in GRCs through CalCCA to advocate for just and reasonable IOU rate design and transparent customer bill presentment.

PG&E Status
PG&E submitted its GRC Phase 2 Application which proposes to increase its fees for services provided for CCAs and requests the ability to update these fees more frequently through Tier 2 Advice Letters rather than within the four-year GRC cycle. Eight parties submitted protests to PG&E’s application. The primary CCA issues identified within PG&E’s proposal are the escalation of CCA service fee costs, PG&E’s POLR administrative cost, and a proposal to allow inter-GRC cycle applications for future changes to CCA service fees via Tier 2 advice letter. CalCCA and the PG&E CCAs will work with consultants to further investigate the method for increasing CCA service fees.

SCE Status
No update.

Next Steps
Parties are awaiting a PD in SCE’s Phase I GRC, which has no CCA contested issues, by Q1 2025 and an Initial Scoping Memo for PG&E’s Phase II Application. Once the scope is determined, 3CE will work with CalCCA to investigate the reasonableness for PG&E to increase CCA service fees.

Staff Report Item 12
TO: 3CE Policy Board of Directors
FROM: Jerri Strickland, Director of Regulatory Affairs & Compliance SUBJECT: Presentation on the Power Charge Indifference Adjustment DATE: April 9, 2025
RECOMMENDATION:

Receive a presentation on the Power Charge Indifference Adjustment (PCIA).

BACKGROUND:

Initially conceived in 2001, the PCIA was designed to prevent cost shifts between Investor-Owned Utility (IOU) customers and Direct Access (DA) customers.1 With the growth of CCAs across the state since 2010, it also now applies to customers who depart IOU service for a CCA electric generation provider.

California Public Utilities Code Section 365.1 mandates that utilities not be penalized for the departure of customers to other providers (unbundled customers) and calls upon the California Public Utilities Commission (CPUC) to establish a mechanism to ensure that the customers remaining with Investor Owned Utilities (IOUs) for generation service (bundled customers) remain indifferent to such departures.2 The PCIA is the CPUC’s response to this mandate, and is designed to ensure that customers who switch to a CCA or DA provider do not unfairly benefit by leaving bundled customers with a disproportionate share of the stranded costs resulting from their departure. The charge seeks to ensure that customers who leave IOUs for alternative generation providers still contribute to the costs of power procurement and other obligations previously incurred by the utility on their behalf. Importantly, both bundled and unbundled customers pay a portion of the stranded costs associated with the PCIA.

The PCIA and its implementation has been a subject of ongoing debate, with various revisions and regulatory actions occurring in 2018, 2019, and 2021 CPUC Decisions.3 Critics have argued that the PCIA is too high and

1 Decision (D.) 02-11-022
2 California Code, Public Utilities Code - PUC § 365.1
3 D.18-10-019; D19-10-011; D.21-05-030

unfairly burdens unbundled customers, preventing them from benefiting fully from the more localized and often lower-cost energy procurement strategies of their new energy providers. Others claim that the PCIA is not high enough and puts a cost shift onto bundled customers. There have been ongoing regulatory proceedings to reform the PCIA, with discussions focusing on how to fairly allocate costs among customers and whether changes to the methodology for calculating the adjustment are needed. These debates involve balancing the needs of IOU customers with those of CCA and DA customers and addressing concerns over fairness and transparency in the way stranded costs are allocated.

Annually, the PCIA is set through the Energy Resources Recovery Account (ERRA) Forecast Proceeding, which determines IOU generation rates for the next calendar year. Applications filed by the IOUs are submitted every May, with Commission decisions scheduled for December and resulting rate changes effective January 1.

The ERRA proceedings concern IOU accounting and portfolio management and are not intended as a forum to consider policy changes. However, because of the drastic increase in energy prices for Resource Adequacy (RA), which caused the PCIA to go negative for the first time and resulted in a credit to unbundled customers, the CPUC considered policy changes to the PCIA methodology as part of its 2024 ERRA forecast proceeding. 4 Some of the proposals considered by the CPUC included how various RA resources are valued – including impacts of the new 24-hour Slice of Day RA Paradigm and using a market price cap instead of actual market prices for certain attributes. Following the ERRA proceeding, the CPUC opened a new Rulemaking (R. 25-02-005) to further consider and evaluate both near- and long-term PCIA modifications and reforms. 5 In response to the new Rulemaking and volatility of the PCIA, 3CE’s Policy Board directed 3CE staff on March 19, 2025 to:

4 A.24-05-009; A.24-05-007
5 R. 25-02-005

1. Continue working with CalCCA and the Executive Committee to develop a strategic and thoughtful regulatory approach that seeks to reduce PCIA volatility; allows Load Serving Entities plan around PCIA fluctuations, while still working to benefit all Californians.

2. Staff should work closely with our Energy Risk Management Committee and the Operations Board to review procurement and risk management strategies in a manner to address and mitigate negative regulatory impacts from PCIA rulemaking.

3. Work closely with the Audit and Finance Committee and/or Executive Committee, as appropriate, to consider adjusting reserve levels necessary to build stable and predictable rate structures for customers.

DISCUSSION/ANALYSIS:

As directed by the Policy Board, 3CE is providing this presentation to the Operations board to level-set what the PCIA is and how its volatility impacts 3CE. This will prepare the Operations Board when reviewing procurement and risk management strategies to address and mitigate negative regulatory impacts from the PCIA rulemaking.

The methodology for PCIA calculation directly affects the competitive differential between IOUs and Community Choice Aggregation entities, such as 3CE. 3CE’s generation rate reflects its cost to serve customers, including operations, portfolio construction, and risk management – factors within the agency’s control. On the other hand, the PCIA, which is applied to 3CE customers’ bills, reflects IOU legacy costs and is set by the CPUC. A high PCIA reduces CCA competitiveness, and a low or negative PCIA enhances CCA’s competitive position.

The amount collected by the PCIA is the difference between the IOU’s Total Portfolio Costs (TPC) and their current portfolio’s market value. TPC is determined by the cost of Power Purchase Agreements (PPAs) and Utility-Owned Generation (UOG) costs, minus revenue from IOU sales of Resource Adequacy (RA) and Renewable Portfolio Standards (RPS) attributes. The portfolio’s current market value is calculated by applying a Market Price Benchmark (MPB) value to the IOU’s generation resources.

Overview of how PCIA is value is calculated:

The MPB is based on a model, specifically the Platts-ICE Forward Curve, which predicts electricity market prices for the upcoming year. The MPB for RPS, on the other hand, is derived from actual IOU transactions for bundled renewable energy credits (RECs). The Energy Index reflects the estimated market value of each unit of energy in a utility portfolio in dollars per megawatt-hour ($/MWh). The RPS Adder represents the incremental value of each unit of RPS-eligible energy due to its eligibility, also in $/MWh.

The RA MPB is a bit more complex in that it has three subcomponents, reflecting each type of RA product required for compliance with the RA program: System, Local, and Flexible.6 The RA MPB reflects the estimated value of each unit of capacity in a utility portfolio that can be used to satisfy Resource Adequacy obligations.

When System, Local and Flexible vary in cost, the categorization of resources can cause large swings in the PCIA.

The complexity of the PCIA is increased by its inconsistent application across traditional customer class distinctions (residential, commercial, and agricultural), with each IOU having its own PCIA classes. Additionally, the year a customer departs IOU service further affects the PCIA.

The CPUC’s current PCIA Rulemaking proceeding will focus on modifications to the MPB calculations, aiming for a May 2025 decision to be incorporated into the 2026 ERRA forecasts. Proposed changes include adjustments to the transaction data used for MPB calculations, the possibility of monthly or seasonal MPBs instead of annual values and the consolidation of calculations for Local, Flexible, and System RA into a single MPB. A second track of the proceeding will explore broader, long-term improvements to the ERRA and PCIA processes, including IOU rate forecasts and methods to mitigate rate volatility.

FISCAL IMPACT:

There is no financial impact by receiving this report.

CONCLUSION:

The PCIA is a volatile rate component influenced by market prices outside of 3CE's and other Load-Serving Entities’ control. This is crucial because it affects 3CE’s competitiveness when compared to SCE and PG&E. The volatility of the PCIA creates the need for strategies to achieve long-term rate-stability and insulate customers from unexpected rate fluctuations.

ATTACHMENT(S):

None.

6 D.19-10-001

Staff Report Item 13
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: CEO Report
DATE: April 9, 2025

COMMUNITY ADVISORY COUNCIL REPORT
3CE’s Community Advisory Council (CAC) held its regular meeting on Wednesday, February 5. The Council received a presentation on staff’s findings from community listening sessions held in November 2024 concerning proposed improvements to 3CE’s Electrify Your Home (EYH) program. Attendees of the listening sessions, which were held in Watsonville and Goleta, expressed strong support for the following improvements:
 Adding additional rebates to the EYH program for induction cooktops  Offering home assessments for customers to evaluate the impact of home electrification on gas and electricity bills
 Expanding eligibility to all licensed contractors
 Piloting a direct installation offering for income-qualified customers A second set of customer workshops have been scheduled for Thursday, April 10 at the Watsonville Civic Plaza Community Room and Thursday, April 17 at the Goleta Valley Community Center.

The Council also received a presentation on the first six months of operations for 3CE’s residential battery rebate program. Interest in the program has been high, with the number of applicants nearly reaching participation projections forecasted for a well-established program. However, applicants have struggled to meet the 50% battery discharge requirement during the peak hours of 4 p.m. to 9 p.m. Of the 123 applicants to the program between July and December 2024, only 26, or 21%, were able to meet the discharge requirements and receive a rebate. In response, staff has worked to develop a web-based scheduling assistant which allows customers, in one click, to set their batteries to meet program requirements. (Customers can also customize the days and hours of their discharge through the assistant.) Staff are reaching out individually to the remaining 97 applicants to help them comply with the program criteria and receive their rebate. The initial reaction to scheduling assistance has been overwhelmingly

positive. Also, during the program’s first six months, staff expanded eligibility criteria to include leased home battery systems to increase participation from income-qualified customers.

Finally, the CAC received a draft evaluation report on 3CE’s Energy Programs’ performance for fiscal year 2023-24. Highlights from the report include:
 During FY 2023-24, 3CE distributed $11 million in rebates and incentives – a 12% increase from the previous year.
 Across all 11 of the agency’s programs, 36% of funding was distributed to income-qualified customers and underserved communities.
 3,758 metric tons of CO2 was avoided because of the FY 2023-24 Energy Programs implementation, equivalent to taking 968 gas-powered vehicles off the road.

Staff gathered input on the evaluation and will present a final version of the report at the next regularly scheduled CAC meeting, which will be held on Wednesday, May 7 at 4:00 p.m.

EV CHARGER ASSET PILOT UPDATE
3CE’s EV Charger Asset Pilot is testing ways to help increase access to both workplace and public charging stations. For workplace charging, 3CE has begun installation of level 2 chargers at its new office in San Luis Obispo. This project is currently in the construction phase with anticipated completion in May 2025. As part of this pilot project, 3CE was awarded a $68,400 grant from the SLO Air Pollution Control District (APCD).

For the EV Charger Asset Pilot’s public facing chargers, 3CE is currently working with City of Santa Maria to install level 2 and level 3 chargers at South McCellan Street, across from the public library. This project is in the preliminary planning phase with the construction phase anticipated to begin in Q2 2025. As part of this pilot project, 3CE was awarded a $200,000 grant from the Santa Barbara APCD.

REQUEST FOR PROPOSALS ISSUED FOR CLEAN, RENEWABLE, AND RELIABLE PROJECTS 3CE anticipates issuing a new Request for Proposals (RFP) on March 19 to secure offers for new clean, renewable, and reliability projects. 3CE has nearly 70% of its demand covered by twenty-one long-term renewable and energy storage agreements, with seven online projects and the remainder still under development. This RFP will allow for the consideration and selection of additional cost-effective projects to meet regulatory requirements and move 3CE closer to its goal of serving 100% of our retail demand with clean and renewable resources. Bids will be due in April, with selections and contract negotiations to begin in late May or early June.

ATTACHMENT(S):

1. 3CE Contracts under $200k

3CE Contracts Under $200,000/fiscal year
Vendor Total Engagement Amount From To Service Scope Remarks 1 Abbott Stringham & Lynch $19,800.00 3/28/2025 8/31/2025 AMI Audit 2 Salesforce $91,009.78 4/1/2025 7/31/2027 Order agreement for 28 months: Salesforce Marketing Cloud for mass digital communications
3 Asap Movers, Inc. $3,532.00 2/20/2025 12/31/2025 Moving company for 71 Zaca Lane furniture move to 1026 Palm Street location
4 Peek Painting $5,168.00 2/21/2025 12/31/2025 Painting company for new SLO office - 1026 Palm Street Location
5 LK Graphics, Inc. d.b.a The Sign Place $3,325.36 3/3/2025 12/31/2025 Sign installation at 1026 Palm Street Location 6 Restorative Practices Integration Assoicates,
LLC
$5,000.00 3/21/2025 12/31/2025 Restorative Practices - Coaching/Training

Staff Report Item 14
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Inaara Muhammad, Manager of Energy Programs Griffin Boyle, Energy Program Analyst
SUBJECT: Approve and authorize the CEO to execute Amendment No. 6 to the Cohen Ventures, Inc., DBA Energy Solutions, amended and restated standard services agreement to revise the scope of work allowing 3CE to distribute incentive checks directly, and to reduce the Agreement’s amount by $735,000 to a total not-to-exceed amount of $4,080,000
DATE: April 9, 2025
RECOMMENDATION:

This recommends the Operations Board approve and authorize the CEO to execute Amendment No. 6 to the Cohen Ventures, Inc., DBA Energy Solutions, (Energy Solutions) Amended and Restated Standard Services Agreement to revise the scope of work allowing 3CE to distribute incentive checks directly, and to reduce the Agreement’s amount by $735,000 to a total not-to-exceed amount of $4,080,000.

BACKGROUND:
3CE executed an agreement in March 2022 with Energy Solutions to support implementation of 3CE’s Electrify Your Home Program (EYH). 3CE’s EYH program leverages state incentives available through the TECH Clean California initiative to accelerate residential electrification. The original agreement with Energy Solutions contained a total not-to-exceed amount of $1,760,000 for a term of March 11, 2022 through September 30, 2023.

On August 15, 2022, the Operations Board approved Amendment No. 1 to renew and extend the agreement for an additional twelve (12) months until September 30, 2023, with no change to the not-to-exceed amount, and modifications to the payment terms. As a result of TECH funding shortages in 3CE’s service area, Amendment No. 1 increased 3CE’s incentive contributions to ensure building electrification incentive levels remained unchanged for customers participating in the EYH program.

On August 24, 2023, the Operations Board approved Amendment No. 2 to the agreement to extend the term by an additional twelve (12) months until September 30, 2024, with no change in the not-to-exceed amount, and to modify the Scope of Work. The modification to the agreement included

enhanced incentives for victims of declared natural disasters, and reduced 3CE’s incentive contribution for heat pump water heater rebates for customers who had leveraged available funding from the State’s Self Generation Incentive Program (SGIP).

Later that year, on November 8, 2023, the Operations Board approved Amendment No. 3 to the agreement, adding $1,500,000 for a total not-to-exceed amount of $3,260,000 without changing the terms of the agreement. At that time, as a result of TECH Clean California’s release of more funding and increased marketing and outreach efforts, the EYH program had experienced a pronounced increase in applications and Energy Solutions had made funding reservations totaling 99% of 3CE’s available incentives.

The following year, on August 14, 2024, the Operations Board approved Amendment No. 4 to the agreement which included new terms to enhance customer engagement, and to renew and extend the expiration for an additional four (4) months, for a revised term of March 11, 2022 through January 31, 2025 and to increase the Agreement’s amount by an additional $565,000 for a total not-to-exceed amount of $3,825,000. The increase in funds allowed 3CE more flexibility to cover full rebate amounts during periods when TECH state funding was not available.

On November 13, 2024, the Operations Board approved Amendment No. 5 to the agreement to extend the contract term by nine (9) months, for a revised term of March 11, 2022, to September 30, 2025, and to increase the Agreement’s amount by $990,000 for a total not-to-exceed contract amount of $4,815,000. The extended contract terms and increase in funds allowed 3CE to continue the EYH program through the remainder of the current fiscal year.

DISCUSSION/ANALYSIS:
3CE’s Electrify Your Home (EYH) program provides incentives to local contractors who replace gas-powered appliances in existing single and multi-family buildings with all-electric heat pump water heating (HPWH) and heat pump heating, ventilation, and air conditioning (HP HVAC) technologies. These incentives directly reduce the upfront cost for 3CE residential customers who transition to all-electric heat pump technology.

EYH partners with the TECH Clean California Initiative (TECH), a statewide program, to leverage funds and to support contractor enrollment and application management. The partnership also allows TECH to offer workforce education and training on heat pump technology and installation, supporting the local workforce and community economic development.

During periods of TECH funding deficits throughout FY 2023-24 and FY 2024-25, 3CE has increased heat pump water heater rebate amounts to supplement TECH’s unavailable funding and ensure consistency in funding available to contractors. To avoid constantly changing the program’s incentives and to better manage the program’s available budget, 3CE updated incentive contribution amounts to the program in March 2025 to remain independent of TECH’s funding availability. The new incentive amounts are consistent with similar home electrification programs in California and provide stable incentives to 3CE customers in events of fluctuation to TECH’s budget. Contractors will continue to apply for incentives through TECH’s incentive portal to streamline their application and to allow stacking funds up to their total project cost in the event that TECH’s budget reopens.

The proposed Amendment No. 6 to the Agreement with Cohen Ventures Inc., DBA Energy Solutions will revise Energy Solutions’ scope of work to transition sending 3CE’s incentive checks directly from 3CE to

contractors. As a result, incentive payments will be excluded from the Agreement’s budgeted costs and reduce the total Agreement’s not-to-exceed amount to $4,080,000 to continue payment exclusively of administration fees through the end of the fiscal year. 3CE’s Community Advisory Council is working with 3CE staff and community stakeholders to understand existing residential building electrification incentive offerings and is conducting community listening sessions to inform enhancements to 3CE’s program’s scope and design. The proposed Amendment No. 6 will allow 3CE to continue working with Energy Solutions under the current EYH scope through the end of the fiscal year, while additional enhancement options are being analyzed.

FISCAL IMPACT:

The proposed revisions to the Cohen Venture, Inc., DBA Energy Solutions agreement will remain within the FY 2024-25 Energy Programs budget, approved by the Policy Board.

CONCLUSION:

The Board’s approval of the amended agreement with Energy Solutions will ensure 3CE continues operating the Electrify Your Home Program without interruption to accelerate residential electrification in 3CE’s service area.

ATTACHMENT(S):

1. Original Amendment with Cohen Ventures, Inc., DBA Energy Solutions

2. Amendment No. 1 to Agreement with Cohen Ventures, Inc., DBA Energy Solutions

3. Amendment No. 2 to Agreement with Cohen Ventures, Inc., DBA Energy Solutions

4. Amendment No. 3 to Agreement with Cohen Ventures, Inc., DBA Energy Solutions

5. Amendment No. 4 to Agreement with Cohen Ventures, Inc., DBA Energy Solutions

6. Amendment No. 5 to Agreement with Cohen Ventures, Inc., DBA Energy Solutions

7. Proposed Amendment No. 6 to the Standard Services Agreement

3/9/2022 1 Contract Number: ______________

CENTRAL COAST COMMUNITY ENERGY

STANDARD SERVICES AGREEMENT
This Agreement is made by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”), a California corporation with its principal place of business located at 449 15th Street, Suite 400, Oakland, CA . 3CE and CONTRACTOR may be individually referred to herein as “Party” or collectively as “Parties.” In consideration of the mutual covenants and conditions set forth in this Agreement, the Parties agree as follows:

1. GENERAL DESCRIPTION

1.1. 3CE hereby engages CONTRACTOR to perform, and CONTRACTOR hereby agrees to perform, the services described in Exhibits A in conformity with the terms of this Agreement. The goods and/or services are generally described as services to implement a Residential Electrification Program for CCCE customers.

2. PAYMENT PROVISIONS

2.1. 3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B, subject to the limitations set forth in this Agreement. The total amount payable by 3CE to CONTRACTOR under this Agreement shall not exceed the sum of $1,760,000.00.

3. TERM OF AGREEMENT

3.1. The term of this Agreement is from the date of execution until September 30th, 2022, unless sooner terminated pursuant to the terms of this Agreement. This Agreement is of no force or effect until signed by both the CONTRACTOR and 3CE, with 3CE’s execution to be last in time.

CONTRACTOR may not commence work under this Agreement before 3CE signs this Agreement.

3.2. 3CE reserves the right to cancel this Agreement, or any extension of this Agreement, without cause with thirty (30) days written notice, or with cause immediately.

4. SCOPE OF SERVICES AND ADDITIONAL PROVISIONS

4.1. The following attached exhibits are incorporated herein by reference and constitute a part of this Agreement:

4.1.1.Exhibit A: Scope of Services

4.1.2.Exhibit B: Payment Terms

4.1.3.Exhibit C: Procedures for Unauthorized Release of Covered Information DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

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5. PERFORMANCE STANDARDS

5.1. CONTRACTOR warrants that CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors performing services under this Agreement are specially trained, experienced, competent, and appropriately licensed to perform the work and deliver the services required under this Agreement and are not employees of 3CE or immediate family of an employee of 3CE.

5.2. CONTRACTOR and CONTRACTOR’s agents, employees and subcontractors shall perform all work in a safe and skillful manner and in compliance with all applicable laws and regulations. All work performed under this Agreement that is required by law to be performed or supervised by licensed personnel shall be performed in accordance with such licensing requirements.

5.3. CONTRACTOR shall furnish, at its own expense, all materials, equipment, and personnel necessary to carry out the terms of this Agreement, except as otherwise specified in this Agreement. CONTRACTOR shall not use 3CE premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement.

6. PAYMENT CONDITIONS

6.1. Prices shall remain firm for the initial term of the Agreement and, thereafter, may be adjusted annually as provided herein. 3CE does not guarantee any minimum or maximum amount of dollars to be spent under this Agreement.

6.2. Negotiations for rate changes shall be commenced, by CONTRACTOR, a minimum of ninety days (90) prior to the expiration of the Agreement. Rate changes are not binding unless mutually agreed upon in writing by 3CE and the CONTRACTOR.

6.3. Invoices shall be submitted monthly on a form acceptable to 3CE and provide sufficient detail, as determined by 3CE, of services rendered for the invoiced period.

6.4. 3CE shall certify the invoice for payment in either the amount requested, or in such other amount as 3CE determines is due in conformity with this Agreement. Invoices shall be certified and paid within 45 days of submission to 3CE.

7. TERMINATION

7.1. During the term of this Agreement, 3CE may terminate the Agreement for any reason by giving written notice of termination to the CONTRACTOR at least thirty (30) days prior to the effective date of termination. Such notice shall set forth the effective date of termination. In the event of such termination, the amount payable under this Agreement shall be reduced in proportion to the services provided prior to the date of termination.

7.2. Either Party may provide notice to the breaching Party of the non-breaching Party’s intent to cancel and terminate this Agreement for Good Cause (defined below). Termination shall occur DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

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if the Parties fail to agree on a plan for the breaching Party to cure within fifteen (15) days of the breaching Party’s receipt of such notice. “Good Cause” includes the failure of CONTRACTOR to perform the required services at the time and in the manner provided under this Agreement, or failure for 3CE to render payment for completed services following CONTRACTOR’s written demand for payment, in accordance with Exhibit B – Payment Conditions. If either Party terminates this Agreement for Good Cause, 3CE may be relieved of payment for work not performed and 3CE may proceed with the work in any manner, which 3CE deems proper.

8. INDEMNIFICATION

8.1. CONTRACTOR shall indemnify, defend, and hold harmless 3CE, its Directors, Board members, officers, agents and employees from any claim, liability, loss, injury or damage arising out of, or in connection with, performance of this Agreement by CONTRACTOR and/or its agents, employees or sub-contractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of personnel employed by 3CE. It is the intent of the parties to this Agreement to provide the broadest possible coverage for 3CE. The CONTRACTOR shall reimburse 3CE for all costs, attorneys’ fees, expenses and liabilities incurred with respect to any litigation in which the CONTRACTOR is obligated to indemnify, defend and hold harmless 3CE under this Agreement.

8.1.1.The CONTRACTOR’s selection of counsel to satisfy CONTRACTOR’s defense and hold harmless obligation as set forth in section 8.1 above, shall be subject to review and approval by 3CE.

8.1.2.Notwithstanding any other provision of this Agreement, 3CE shall be entitled to participate fully in the defense of any claim or action.

9. INSURANCE REQUIREMENTS

9.1. Prior to commencement of this Agreement, the CONTRACTOR shall provide a “Certificate of Insurance” certifying that coverage as required herein has been obtained. Individual endorsements executed by the insurance carrier shall accompany the certificate. In addition, the CONTRACTOR upon request shall provide a certified copy of the policy or policies. This verification of coverage shall be sent to 3CE.

9.2. Without limiting CONTRACTOR’s duty to defend and indemnify, CONTRACTOR shall maintain in effect throughout the term of this Agreement a policy or policies of insurance with the following minimum limits of liability:

9.2.1.1. Commercial General Liability Insurance, including but not limited to premises and operations, including coverage for Bodily Injury and Property Damage, Personal Injury, Contractual Liability, Broad form Property Damage, Independent Contractors, Products and Completed Operations, and cross-liability with a combined single limit for Bodily Injury and Property Damage of not less than $1,000,000 per occurrence, and $2,000,000 in the aggregate.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

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9.2.1.2. Business Automobile Liability Insurance, covering all motor vehicles, including owned, leased, non-owned, and hired vehicles, used in providing services under this Agreement, with a combined single limit for Bodily Injury and Property Damage of not less than $500,000 per occurrence.

9.2.1.3. Workers’ Compensation Insurance, if CONTRACTOR employs others in the performance of this Agreement, in accordance with California Labor Code section 3700 and with Employer’s Liability limits not less than $1,000,000 each person, $1,000,000 each accident and $1,000,000 each disease.

9.2.1.4. Professional Liability Insurance, if required for the professional services being provided, (e.g., those persons authorized by a license to engage in a business or profession regulated by the California Business and Professions Code), in the amount of not less than $1,000,000 per claim and $2,000,000 in the aggregate, to cover liability for malpractice or errors or omissions made in the course of rendering professional services. If professional liability insurance is written on a “claims-made” basis rather than an occurrence basis, the CONTRACTOR shall, upon the expiration or earlier termination of this Agreement, obtain extended reporting coverage (“tail coverage”) with the same liability limits. Any such tail coverage shall continue for at least three years following the expiration or earlier termination of this Agreement.

9.3. Unless otherwise specified by this Agreement, all such insurance shall be written on an occurrence basis, or, if the policy is not written on an occurrence basis, such policy with the coverage required herein shall continue in effect for a period of three years following the date CONTRACTOR completes its performance of services under this Agreement.

9.4. Commercial general liability and automobile liability policies shall provide an endorsement naming 3CE, its Directors, Board members, officers, agents, and employees as Additional Insureds with respect to liability arising out of the CONTRACTOR’S work, including ongoing and completed operations, and shall further provide that such insurance is primary insurance to any insurance or self-insurance maintained by 3CE and that the insurance of the Additional Insureds shall not be called upon to contribute to a loss covered by the CONTRACTOR’S insurance.

10. RECORD AND CONFIDENTIALITY

10.1. “Confidential Information” is defined as certain confidential, secret and proprietary information, disclosed either orally or in writing or in printed, graphic or electronically recorded materials, records, data, specifications, formulas, technology, inventions, devices, products, methods, know-how, processes, financial data, specific client data and requirements, client and potential client lists, information concerning each Parties employees, agents or divisions, pricing information, and other trade secrets which have been or will be developed and owned by either of the Parties or their respective client(s).

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

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10.1.1. Confidential Information specifically includes Covered Information (as defined in Exhibit C), including Protected Personal Information(“PPI”) that identifies, relates to, describes, or is capable of being associated with, or could reasonably be linked, directly or indirectly, with a consumer, household, or customer account. All such Covered Information and PPI must fully be protected from disclosure as set forth in California Public Utility Commission Decision D.12-08-045. In the event of an unauthorized release of Covered Information and PPI, CONTRACTOR shall comply with Exhibit C, Procedures for Unauthorized Release of Covered Information.

10.2. The Parties and their respective officers, employees, agents, and subcontractors shall comply with any and all federal, state, and local laws, which provide for the confidentiality of records and other information. A Party receiving Confidential Information (the “Receiving Party”) shall not disclose any confidential records or other Confidential Information received from the other Party (the “Disclosing Party”) or prepared in connection with the performance of this Agreement, unless the Disclosing Party specifically permits the Receiving Party to disclose such records or information. The Receiving Party shall promptly transmit to 3CE any and all requests for disclosure of any such confidential records or Confidential Information. The Receiving Party shall not use any Confidential Information gained by the Receiving Party in the performance of this Agreement except for the sole purpose of carrying out the Receiving Party’s obligations under this Agreement.

10.3. Upon expiration or termination of this Agreement, the Receiving Party shall return to the Disclosing Party any Disclosing Party records which the Receiving Party used or received from the Disclosing Party to perform services under this Agreement.

10.4. CONTRACTOR shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and local rules and regulations related to services performed under this Agreement. CONTRACTOR shall maintain such records for a period of at least three years after receipt of final payment under this Agreement. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the three-year period, then CONTRACTOR shall retain said records until such action is resolved.

10.5. 3CE shall have the right to examine, monitor and audit all records, documents, conditions, and activities of the CONTRACTOR and its subcontractors related to services provided under this Agreement. Pursuant to Government Code section 8546.7, if this Agreement involves the expenditure of public funds in excess of $10,000, the parties to this Agreement may be subject, at the request of 3CE or as part of any audit of 3CE, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

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10.6. CONTRACTOR shall not publish any and all original computer programs, writings, sound recordings, pictorial reproductions, drawings, and other works of similar nature without the prior written approval of 3CE.

11. INTELLECTUAL PROPERTY RIGHTS

11.1 “Iris Platform” is defined as the Iris online software and associated data, owned and maintained by CONTRACTOR and provided as a part of the services to 3CE under this Agreement, that functions as an incentive processing and program reporting platform for 3CE’s customers and other third parties.

11.2 Intellectual Property Rights to the Iris Platform. All right, title, and interest in and to the Iris Platform (including without limitation all intellectual property rights therein) and all modifications, improvements, extensions, customizations, scripts or other definitive works of the Iris Platform provided or developed by the CONTRACTOR, whether prior to or during the Term of this Agreement, are and shall remain at all times solely vested in the CONTRACTOR. The Iris Platform was developed in its entirety by CONTRACTOR prior to the term of this Agreement, is the sole and exclusive property of CONTRACTOR, and CONTRACTOR retains all intellectual property rights thereto, including but not limited to copyrights (including all registrations and applications therefor), trade secrets, service marks, trademarks, trade names, trade dress, trademark applications and registrations, internet domain names, and all other proprietary and intellectual property rights, including moral rights.

Use of the Iris Platform by 3CE, its customers or any third party as part of the services shall not convey any rights of ownership to the Iris Platform, express or implied, including any intellectual property rights thereto, to any such party. During the term of this Agreement, CONTRACTOR grants to 3CE a non-exclusive, non-assignable, royalty-free, worldwide limited right to access and use the Iris Platform in connection with the services. Except as expressly provided herein, Company agrees not to assign, sublicense, transfer, copy, reproduce, distribute, republish, display, post or transmit in any form or by any means, any part of the Iris Platform to any third party. 3CE agrees not to access the Iris Platform by any means other than through the interfaces that are provided by CONTRACTOR.

Notwithstanding any conflicting terms of this Agreement, the Iris Platform and any and all works, expressions, inventions, ideas, discoveries, improvements and developments made to the Iris Platform by any person during the term of this Agreement, are explicitly excluded as "work for hire" pursuant to this Agreement.

Any data provided by 3CE to CONTRACTOR on the Iris Platform remains the property of 3CE and, upon request, shall be exported and/or deleted from the Iris Platform.

11.3 Iris Platform Terms of Use. All users of the Iris Platform shall be required to comply with the Iris Platform's standard Terms of Use, including 3CE employees who accesses the Iris Platform in connection DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

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with the services; provided, however, that if any Terms of Use applicable to 3CE employees conflict with any provisions of this Agreement, with respect to 3CE's use of the Iris Platform in connection with the services, the provision of this Agreement shall control.

12. NON-DISCRIMINATION

12.1. During the performance of this Agreement, CONTRACTOR, and its subcontractors, shall not unlawfully discriminate against any person because of race, religious creed, color, sex, national origin, ancestry, physical disability, mental disability, medical condition, marital status, age (over 40), or sexual orientation, either in CONTRACTOR’s employment practices or in the furnishing of services to recipients. CONTRACTOR shall ensure that the evaluation and treatment of its employees and applicants for employment and all persons receiving and requesting services are free of such discrimination. CONTRACTOR and any subcontractor shall, in the performance of this Agreement, fully comply with all federal, state, and local laws and regulations which prohibit discrimination. The provision of services primarily or exclusively to such target population as may be designated in this Agreement shall not be deemed to be prohibited discrimination.

13. INDEPENDENT CONTRACTOR

13.1. In the performance of work, duties, and obligations under this Agreement, CONTRACTOR is at all times acting and performing as an independent contractor and not as an employee of 3CE. No offer or obligation of permanent employment with 3CE and CONTRACTOR shall not become entitled by virtue of this Agreement to receive from 3CE any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. CONTRACTOR shall be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of CONTRACTOR’s performance of this Agreement. In connection therewith, CONTRACTOR shall defend, indemnify, and hold 3CE harmless from any and all liability which 3CE may incur because of CONTRACTOR’s failure to pay such taxes.

14. NOTICES

14.1. Notices required under this Agreement shall be delivered personally, by email, or by first-class, postage pre-paid mail to 3CE and CONTRACTOR’S contract administrators at the addresses listed below. In the case of email, Notices are considered received upon the date of confirmation of receipt or read receipt:

Central Coast Community Energy CONTRACTOR
Chief Financial Officer Contract Services
70 Garden Court, Suite 300 449 15th Street, Suite 400
Monterey, Ca 93940 Oakland, CA 94612
Email: [email protected] Email: [email protected] DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

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15. MISCELLANEOUS PROVISIONS

15.1. Conflict of Interest. CONTRACTOR represents that it presently has no interest and agrees not to acquire any interest during the term of this Agreement, which would directly, or indirectly conflict in any manner or to any degree with the full and complete performance of the services required to be rendered under this Agreement.

15.2. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by CCCE and the CONTRACTOR.

15.3. Waiver. Any waiver of any terms and conditions of this Agreement must be in writing and signed by 3CE and the CONTRACTOR. A waiver of any of the terms and conditions of this Agreement shall not be construed as a waiver of any other terms or conditions in this Agreement.

15.4. Contractor. The term “CONTRACTOR” as used in this Agreement includes CONTRACTOR’s officers, agents, and employees acting on CONTRACTOR’s behalf in the performance of this Agreement.

15.5. Disputes. CONTRACTOR shall continue to perform under this Agreement during any dispute.

15.6. Assignment and Subcontracting. The CONTRACTOR shall not assign, sell, or otherwise transfer its interest or obligations in this Agreement without the prior written consent of 3CE None of the services covered by this Agreement shall be subcontracted without the prior written approval of 3CE. Notwithstanding any such subcontract, CONTRACTOR shall continue to be liable for the performance of all requirements of this Agreement.

15.7. Successors and Assigns. This Agreement and the rights, privileges, duties, and obligations of 3CE and CONTRACTOR under this Agreement, to the extent assignable or delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, and heirs.

15.8. Compliance with Applicable Law. The parties shall comply with all applicable federal, state, and local laws and regulations in performing this Agreement.

15.9. Headings. The headings are for convenience only and shall not be used to interpret the terms of this Agreement.

15.10. Time is of the Essence. Time is of the essence in each and all of the provisions of this Agreement.

15.11. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

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15.12. Non-exclusive Agreement. This Agreement is non-exclusive and both 3CE and CONTRACTOR expressly reserve the right to contract with other entities for the same or similar services.

15.13. Construction of Agreement. 3CE and CONTRACTOR agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement.

15.14. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.

15.15. Authority. Any individual executing this Agreement on behalf of 3CE or the CONTRACTOR represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement.

15.16. Integration. This Agreement, including the exhibits, represent the entire Agreement between 3CE and the CONTRACTOR with respect to the subject matter of this Agreement and shall supersede all prior negotiations, representations, or agreements, either written or oral, between 3CE and the CONTRACTOR as of the effective date of this Agreement, which is the date that 3CE signs the Agreement.

15.17. Interpretation of Conflicting Provisions. In the event of any conflict or inconsistency between the provisions of this Agreement and the Provisions of any exhibit or other attachment to this Agreement, the provisions of this Agreement shall prevail and control.

Energy Solutions Central Coast Community Energy
BY:__________________________________ BY:______________________________________ Title:_____________________________ Tom Habashi, CEO
Date: ____________________________ Date: ____________________________ Approved as to Form
BY:______________________________________
Brian Kimball, General Counsel
Date: ____________________________
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B Director, Energy Efficiency
3/9/2022
3/11/2022
3/11/2022

3/9/2022 10 Contract Number: ______________
Approved as to Financial Terms
BY:______________________________________
Jaya Bajpai, Chief Financial Officer
Date: ____________________________
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B 3/10/2022

3/9/2022 11 Contract Number: ______________
Exhibit A: Scope of Services
Task 1 - Program Administration
Consultant will collaborate with CCCE to develop, implement, and manage the Program with activities including, but not limited to program budget and tracking and representing CCCE’s interests with third parties and participating contractors. Consultant will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.

Activities:
• In Person meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
Consultant will provide reports to CCCE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, our software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit CCCE’s preferences.

Consultant will prepare a monthly report with a summary of current participation and performance indicators that are determined by Consultant and approved by CCCE.

These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and Consultant.

Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. Consultant will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.

Deliverables:
• Raw data provided ad hoc.

Task 3 - Contractor Outreach
Consultant will leverage trade ally outreach efforts of TECH to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. Consultant will work with contractors to create installs in CCCE territory and provide support on how to submit applications through the DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

3/9/2022 12 Contract Number: ______________
Incentive Clearinghouse. Contractors enrolled in TECH will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.

Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all TECH incentives. This feature will be used for statewide, pilot, and regional incentives offered by TECH, and will be essential to scale and integrate new initiatives as building electrification is more widely adopted. The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse is to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.

Consultant will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

Consultant will pay process, QA/QC and pay incentives for CCCE on the clearinghouse. Payments to contractors will combine both CCCE and TECH incentives into a single check paid to participants to simplify the payment process.

Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives • Processing and Payment of CCCE Incentive applications.

Estimated Percentage of Time Per Task:

Task Estimated Percent of Time
Task 1 – Program Administration 30%
Task 2 – Monthly Data Reports 20%
Task 3 – Contractor Outreach 20%
Task 4 – Incentive Clearinghouse 30%
Program Duration
Program duration is at the discretion of CCCE, but the current proposal assumes the program will run from July 1, 2022, through July 1st, 2025, or until the budget is spent.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

3/9/2022 13 Contract Number: ______________
Program Incentives and Implementation
Incentive Plan
The below tables show the incentive values for HP HVAC and HPWH measures. In all cases, the incentive is limited by the project cost, which will be a required application field. The incentives will be available throughout CCCE territory.

Single Family Incentives
Heat Pump HVAC Measures
TECH plans to offer baseline incentives of $3,000 per unit to all Gas IOU customers in California. TECH is seeking to partner with other program administrators that want to provide incentives to support quicker adoption by supporting an enhanced incentive structure that offers up to $3,600 in additional incentives. Consultant proposes that CCCE funds $1,500 per HP HVAC installation, which will allow the TECH to provide complementary incentives for the installation of higher efficiency equipment with higher installation quality. These CCCE funded incentives will be paid by the Consultant and dispersed through the Incentive Clearinghouse with the TECH funds to provide a seamless experience to market actors.

Table 1: Unitary/Split System Heat Pump HVAC Incentives *Incentives available for installations providing full-home heating/cooling. Load calculations showing the installed mini-/multi-split serves full home will be required as part of the application. **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

Table 2: Heat Pump HVAC Quality Installation Bonuses
Quality Installation Measure* Qualifier
CCCE
Incentive
per Unit
TECH
Incentive per
Unit**
Total
Incentive per
Unit
Manual J Completed Provide Calculations $0 $600 $600
Duct Testing and Sealing 5% Total leakage or less $0 $600 $600 Equipment
Type
Size
Category
Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
TECH
Incentive
per
Unit**
Total
Incentive
per Unit
Unitary Split
System and
mini/multi-split
< 5.4 tons Ducted
Baseline HP Replacement $1,500 $1,500 $3,000
1 16.0 SEER 9.5 $1,500 $2,400 $3,900
2 18.0 SEER 10.0 $1,500 $3,300 $4,800
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

3/9/2022 14 Contract Number: ______________
Field Measured Performance
(based on ASHRAE 221-2020)
Heating System Performance Ratio (HSPr)
or Cooling System Performance Ratio
(CSPr) = 80% or better
$0 $600 $600
*Incentives only available as add-on bonuses to heat pump installation. **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

The HP HVAC measures are for gas to heat pump conversion scenarios only. In all cases, the applicant must show that the gas equipment has either been fully decommissioned or setup to run in emergency scenarios only. In addition, the HP HVAC incentives are based on heat pumps that provide full-home heating and cooling. The incentives are available in cases when the customer does not have previous cooling.

CCCE would also be funding a low-income adder, with a flat rate of $1,000/unit.

Measure Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit
Total
Incentive
per Unit*
Low-Income Kicker CARE/FERA enrollment $1,000 $0 $1,000 Heat Pump Water Heater Measures
The Program will offer incentives for customers converting from a gas, propane, or electric resistance water heater to HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive. Like the HP HVAC measures, TECH plans to offer baseline incentives for HPWH’s but will offer an enhanced incentive structure (up to a total of $6,600) for partners that want to provide incentives for these technologies. The enhanced incentive structure will support additional incentives for replacing electric resistance water heaters and for panel upgrades needed in conjunction with HPWH installations. Consultant proposes that CCCE offer $1,500 for gas to electric conversions. These incentives will be funded by CCCE and distributed by the Consultant with the complimentary TECH incentives. This contribution of funding enables TECH to offer complimentary incentives that are more attractive for replacing electric resistance replacement, and enable electric panel upgrades, overcoming a major barrier to many installations.

Table 3: Heat Pump Water Heater Incentives
Previous WH Fuel
Type HPWH Capacity
CCCE
Incentive
per Unit
TECH
Incentive
per Unit*
Total
Incentive
per Unit
Natural Gas/Propane
< 55 Gallons $1,500 $1,600 $3,100
> 55 Gallons $1,500 $2,300 $3,800
Electric resistance All $0 $1,500 $1,500
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

3/9/2022 15 Contract Number: ______________
Table 4: Panel Upgrade/Smart Load Center Incentives
Measure Category Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit**
Total
Incentive
per Unit
Panel upgrade Up to 200 amps
$1,000 $1,800 $2,800
Smart Load Center* None
*Incentives only available as add-on bonuses to heat pump water heater installation **TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

The incentive rates for natural gas or propane to HPWH are differentiated to support upsizing HPWHs to ensure the units have capacity to run primarily in heat pump mode, while also having load available to shift out of peak demand periods.

TECH will offer panel upgrade incentives for customers sizing up to 200 amps or installing a smart load center if the smart load center increases the effective panel capacity to support the added electrical load from the HPWH.

CCCE would also be funding a low-income adder, with a flat rate of $1,000/unit Measure Qualifier
CCCE
Incentive
per Unit
TECH
Incentive
per Unit
Total
Incentive
per Unit
Low-Income Kicker CARE/FERA enrollment $1,000 $0 $1,000 Consultant will re-evaluate incentive levels and participation after the first year, 2022, to determine whether the incentive design should be updated to meet the needs of CCCE and TECH. The soon to be released 120-volt “plug-in” HPWHs will be eligible for the incentive amount associated with the previous water heater fuel type. Consultant may establish a future measure category specifically available for the 120-volt HPWHs once more data on unit install cost are collected.

Multi-Family Incentives
Multifamily incentives are proposed to be 50% of current TECH offering for market rate incentives and 100% of the TECH incentives for low income. These incentives reflect similar incentives offered by other Program Administrators in the state and can be layered directly with the TECH incentives. This format will ensure that there is little confusion with multifamily contractors.

Gas to Electric HPWH
DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

3/9/2022 16 Contract Number: ______________
Measure CCCE Market Rate
Incentives
CCCE Low
Income
Incentives
TECH
Layered
Incentives*
Gas/propane to HPWH - unitary $700 $1,400 $1,400
upsizing kicker Gas/propane to
HPWH - unitary
$350 $700 $700
non HPWH to HPWH - central $600 $1,200 $1,200
upsizing kicker non HPWH to
HPWH - central
$300 $600 $600
Panel/Electrical service upgrade $700 $1,400 $1,400
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

Gas to Electric HP HVAC Incentives
Measure CCCE Market Rate
Incentives
CCCE Low
Income
Incentives
TECH Layered
Incentives*
Split or Rooftop HP - individual apt. $1,000 $2,000 $2,000 PTHP, SPVHP, unitary through the
wall - individual apt.
$250 $500 $500
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$500 $1,000 $1,000
HP HVAC - multiple apts. $500 $1,000 $1,000
Split or Rooftop HP - common area $900 $1,800 $1,800
PTHP, SPVHP, unitary through the
wall - common area
$150 $300 $300
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$400 $800 $800
Panel/Electrical service upgrade $700 $1,400 $1,400
*TECH incentives are shown for display purposes and are subject to change based on TECH Program decisions.

Energy Solutions will inform CCCE of any potential changes to TECH incentives.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

3/9/2022 17 Contract Number: ______________
Exhibit B: Payment Terms
Incentive Reimbursement
Consultant will pay incentives and be reimbursed by CCCE to simplify payment process. Consultant will provide invoices with details of incentive payments as well as fixed price and performance payments in an agreed upon between Consultant and CCCE. Invoices will be submitted to CCCE by the 15th of each month.

Budget
Consultant will be compensated with an administration budget based on a fixed price (Fixed Price Start-Up Fee) and performance basis (Performance Payment). The Fixed Price Start-Up Fee and Performance Payment covers all the services in the Scope of Work. The Fixed Price Start-Up Fee covers costs associated with Program start-up, including 1) contractor outreach and enrollment across CCCE’s service area, 2) coordination with additional TECH activities, and 3) configuration of the Incentive Clearinghouse. The Program Implementation Fee covers ongoing services described in the Scope of Work. The Fixed Price Start-Up Fee shall be $50,000 and the Program Implementation Fee shall be 10% of all incentives paid out over $500,000. Associated with Program start-up, the Fixed Price Start-Up Fee will be invoiced upon receiving the Program’s first claim through the Incentive Clearinghouse and satisfactory demonstration of completed activities 1 – 3 above. Table 6 below provides the key performance indicators and budget for the Program.

Table 5: Budget and Participation Estimates
Key Metric Total
Estimated HP HVAC Units 667
Estimated HPWH Units 400
Incentive Reimbursement $1,600,000
Total Administration Costs $160,000
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $110,000
Total Costs $1,760,000
Table 6. Budget per Category
Category Minimum Budget Maximum Budget Per Project
Single Family (SF) $600,000 $100,000*
Multi-Family (MF) $400,000 $100,000
Low-Income (SF or MF) $200,000 $200,000
*Includes large group single family projects such as a military base.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

3/9/2022 18 Contract Number: ______________
These budgets per category are intended to promote geographic equity and diversity across the Program’s projects. Incentive caps per category may be changed through agreement with both parties and documented in email.

Exhibit C: Procedures for Unauthorized Release of Covered Information SCOPE
CONTRACTOR hereby agrees to adhere to these Procedures for detecting and reporting the unauthorized release of Covered Information, including Protected Personal Information (“PPI”).

These Procedures apply to the following unauthorized release activities:

1. Unauthorized access

2. Unauthorized destruction

3. Unauthorized use

4. Unauthorized modification

5. Disclosure to third parties for Secondary Purposes (see below)

DEFINITIONS
Covered Entity – (1) any Community Choice Aggregator or Electrical Service Provider (when providing service to residential or small commercial customers), or any third party that provides services to a Community Choice Aggregator or Electrical Service Provider (when providing service to residential or small commercial customers) under contract, (2) any third party who accesses, collects, stores, uses or discloses covered information pursuant to an order of the Commission, unless specifically exempted, who obtains this information from an electrical corporation, a Community Choice Aggregator or an Electrical Service Provider (when providing service to residential or small commercial customers), or (3) any third party, when authorized by the customer, that accesses, collects, stores, uses, or discloses covered information relating to 11 or more customers who obtains this information from an electrical corporation, a Community Choice Aggregator or an Electrical Service Provider (when providing service to residential or small commercial customers).

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

3/9/2022 19 Contract Number: ______________
Covered Information -- any usage information obtained through the use of the capabilities of Advanced Metering Infrastructure when associated with any information that can reasonably be used to identify an individual, family, household, residence, or non-residential customer, except that covered information does not include usage information from which identifying information has been removed such that an individual, family, household or residence, or non-residential customer cannot reasonably be identified or re-identified. Covered information, however, does not include information provided to the California Public Utilities Commission (the “Commission”) pursuant to its oversight responsibilities.

Primary Purposes – The “primary purposes” for the collection, storage, use, or disclosure of covered information, as outlined in Rule 1(c) of Attachment B, are to:

1. Provide or bill for electrical power or gas,

2. Provide for system, grid, or operational needs,

3. Provide services as required by state or federal law or as specifically authorized by an order of the Commission, or

4. Plan, implement, or evaluate demand response, energy management, or energy efficiency programs under contract with a Community Choice Aggregator or and Electrical Service Provider (when providing service to residential or small commercial customers), under contract with the Commission, or as part of a Commission authorized program conducted by a governmental entity under the supervision of the Commission.

Secondary Purposes – “Secondary purpose” means any purpose that is not a primary purpose.

Non-Covered Entity – “Non-Covered Entity” means any entity not defined as a Covered Entity.

Responsible Parties -- 3CE, CONTRACTOR, and any staff, employees, or sub consultants contracted by 3CE or CONTRACTOR.

PROCEDURE
Detecting and Reporting of Unauthorized Releases

1. All Responsible Parties are required to protect Covered Information from unauthorized release activities as set forth above.

2. Any request by any non-Covered Entities, for access to Covered Information must be reviewed and approved by an 3CE manager level employee to ensure no unauthorized or inadvertent release of Covered Information.

3. All authorized releases of Covered Information to Non-Covered Entities shall be logged and reported to 3CE on a quarterly basis.

4. Any discovery of any unauthorized release of Covered Information must be reported to 3CE within one week of detection.

Unauthorized Release Handling Procedure

1. The discovering party after detecting, or discovery of, the unauthorized release of Covered Information must contact 3CE’s Dir. of Finance and Administration (or another executive manager) immediately.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

3/9/2022 20 Contract Number: ______________

2. CONTRACTOR will quantify and validate the type and extent of unauthorized release and report that information to 3CE’s Dir. of Finance and Administration in writing with sufficient detail for 3CE to determine the extent and impact of the unauthorized release.

3. CONTRACTOR shall prepare a written annual report of all discoveries of unauthorized releases of Covered Information.

Review and Training

1. At least annually, CONTRACTOR will review these Procedures with its staff, employees, or sub consultants.

2. Any proposed changes to these Procedures shall be provided in writing to 3CE’s Dir. of Finance and Administration for their consideration.

DocuSign Envelope ID: D2DC84CA-DDED-44EC-B04E-3C8EFC07B99B

DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 1 AMENDMENT NO. 1

TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No.1 to the Services Agreement (“Agreement”) which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“CCCE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”); (CCCE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, CCCE and CONTRACTOR entered into the Agreement on March 11, 2022, to provide goods and/or services generally described as services to implement a Residential Electrification Program (“Program”) for CCCE customers; and WHEREAS, CCCE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining CCCE incentive funds with state incentive funds; and
WHEREAS, due to high demand, in May 2022, TECH Clean California Initiative funds became either fully reserved or substantially reserved throughout CCCE’s service area, impacting the Program’s ability to provide CCCE customers with incentives at the desired levels to accelerate electrification; and
WHEREAS, CCCE seeks to extend the term of the Agreement to September 30, 2023; and
WHEREAS, without changing the Not to Exceed amount of the Agreement, CCCE seeks to supplement incentive funds that were offered under the TECH Clean California Initiative to allow building electrification incentives to remain unchanged for CCCE customers.

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

The Agreement is hereby amended on the terms and conditions as set forth in the Agreement, except as specifically set forth below.

1. Amend the first sentence of Section 3.1 to read as follows:

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B

DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 2 The term of this Agreement is from the date of execution until September 30th, 2023, unless sooner terminated pursuant to the terms of this Agreement.

2. Replace Exhibit A with Exhibit A-1, attached and incorporated herein.

3. Replace Exhibit B with Exhibit B-1, attached and incorporated herein.

4. Except as provided herein, all remaining terms, conditions and provisions of the Agreement are unchanged and unaffected by this Amendment No. 1 and shall continue in full force and effect.

5. A copy of this Amendment No. 1 shall be attached to the Original Agreement.

6. This Amendment No. 1 shall be effective when signed by both parties.

IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

Cohen Ventures, Inc. Central Coast Community Energy
BY:

Title: Associate Director
BY:

Tom Habashi, CEO
Date: 8/2/2022 | 8:19 AM PDT Date:

Approved as to Form
BY:

Brian Kimball, General Counsel
Date:

Approved as to Financial Terms
BY:

Jaya Bajpai, Chief Financial Officer
Date:

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B 8/15/2022
8/15/2022
8/15/2022

DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 3 Contract Number:

Exhibit A-1: Scope of Services
Task 1 - Program Administration
CONTRACTOR will collaborate with CCCE to develop, implement, and manage the CCCE Electrify Your Home Program (“The Program”) with activities including, but not limited to processing applications, paying incentives, reporting, and representing CCCE’s interests with third parties and participating contractors. CONTRACTOR will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.

Activities:
• Meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
CONTRACTOR will provide reports to CCCE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, CONTRACTOR’S software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit CCCE’s preferences.

CONTRACTOR will prepare a monthly report with a summary of current participation and performance indicators that are determined by CONTRACTOR and approved by CCCE. These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and CONTRACTOR.

Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.

Deliverables:
• Raw data provided ad hoc.

Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. CONTRACTOR will work with contractors to create EP-2022-013
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installs in CCCE territory and provide support on how to submit applications through the Incentive Clearinghouse. Contractors previously enrolled in the TECH Clean California Initiative will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.

Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all Program incentives, including potential future incentives that may be integrated from other parties (e.g., TECH or other State incentives). The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse are to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.

CONTRACTOR will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

CONTRACTOR will process applications, conduct QA/QC, and pay incentives for CCCE on the Incentive Clearinghouse. If potential future incentives from third parties become available for program integration, payments to contractors will combine both CCCE and additional incentives into a single check paid to participants to simplify the payment process.

Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives. • Processing and Payment of CCCE Incentive applications.

Table 1: Estimated Percentage of Time Per Task
Task Estimated Percent of Time
Task 1 – Program Administration 30%
Task 2 – Monthly Data Reports 20%
Task 3 – Contractor Outreach 20%
Task 4 – Incentive Clearinghouse 30%
Program Incentives and Implementation
Incentive Plan
The tables below show incentive values for Heat Pump Heating, Ventilation, and Air Conditioning (HPHVAC) and Heat Pump Water Heater (HPWH) measures under the Program. In all cases, the incentive is limited by the project cost, which will be a required application field. The incentives will be available throughout CCCE service area and are subject to change based on CCCE’s discretion. The CCCE funded incentives will be paid by the CONTRACTOR and dispersed through the Contractor’s Incentive Clearinghouse to provide a seamless experience to market actors.

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B

DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 5 Contract Number:

Single Family Incentives
Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for single family homeowner customers converting from a gas or propane HVAC to all-electric HPHVAC.

Table 2: Unitary/Split System Heat Pump HVAC Incentives Equipment
Type* Size Category Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
Unitary Split Baseline HP Replacement $2,500
System and
mini/multi- < 5.4 tons Ducted 1 16.0 SEER 9.5 $3,000
split 2 18.0 SEER 10.0 $3,500
*Incentives available for installations providing full-home heating/cooling. Load calculations showing the installed mini-/multi-split serves full home will be required as part of the application.

The Program will provide an added incentive to income qualified applicants installing a HVAC measure.

The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.

Table 3: Income Qualified Kicker - HPHVAC
Measure Qualifier
CCCE
Incentive
per Unit
Low-Income Kicker CARE/FERA enrollment $1,000
Heat Pump Water Heater (HPWH) Measures
The Program will provide incentives for single family homeowner customers converting from a gas or propane water heater to all-electric HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive.

Table 4: Heat Pump Water Heater Incentives
Previous WH Fuel
Type HPWH Capacity
CCCE
Incentive
per Unit
Natural Gas/Propane < 55 Gallons $3,300
> 55 Gallons $3,800
The Program will provide an added incentive to income qualified applicants installing HPWH measure.

The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B

DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 6 Contract Number:

Table 5: Income Qualified Kicker - HPWH
Measure Qualifier
CCCE
Incentive
per Unit
Low-Income Kicker CARE/FERA enrollment $1,000
Panel Replacement Measures
The Program will offer incentives for panel replacements or upgrades to single family homeowner customers that increase the effective panel capacity to support additional electrical load related to the installation of HPHVAC or HPWH measures. This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.

Table 6: Panel Upgrade and Replacement Incentives
Measure Category
CCCE
Incentive per
Unit
Panel upgrade $2,000
Multi-Family Incentives
Gas to Electric HPWH
The Program will provide incentives for multifamily building owner customers converting from a gas or propane water heater to all-electric HPWH.

Table 7: Multifamily Unit HPWH Incentives
Measure Market Rate
Incentives per Unit
Low Income
Incentives per
Unit
Gas/propane to HPWH - unitary $2,100 $2,800
upsizing kicker Gas/propane to
HPWH - unitary $1,050 $1,400
non HPWH to HPWH - central $1,800 $2,400
upsizing kicker non HPWH to
HPWH - central $900 $1,200
Panel/Electricalservice
upgrade* $2,000 $2,800
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B

DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 7 Contract Number:

Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for multifamily building owner customers converting from a gas or propane HVAC to all-electric HPHVAC.

Table 8: Multifamily Unit HP HVAC Incentives
Measure Market Rate Incentives
per Unit
Low Income
Incentives per
Unit
Split or Rooftop HP - individual apt. $3,000 $4,000
PTHP, SPVHP, unitary through the
wall - individual apt. $750 $1,000
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$1,500 $2,000
HP HVAC - multiple apts. $1,500 $2,000
Split or Rooftop HP - common area $2,700 $3,600
PTHP, SPVHP, unitary through the
wall - common area $450 $600
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$1,200 $1,600
Panel/Electricalservice upgrade $2,000 $2,800
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.

TECH Clean California Data Sharing
CCCE acknowledges and agrees that over the course of CONTRACTOR carrying out its obligations under this agreement, customer program participation data may need to be disclosed to CONTRACTOR’S subcontractors and representatives carrying out their obligations under the TECH Clean California program. In its agreements with subcontractors and representatives, CONTRACTOR will require the same adherence to all confidentiality and data security measures described by this Agreement, including Section 10. Record and Confidentiality and Exhibit C: Procedures for Release of Covered Information. CONTRACTOR is solely responsible for any breach or non-compliance of these terms by its TECH Clean California subcontractors or CONTRACTOR representatives in safeguarding confidential information in accordance with this Agreement.

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B

DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-D5F1608CC7F6 8/1/2022 8 Contract Number:

Exhibit B-1: Payment Terms
Incentive Reimbursement
CONTRACTOR will pay incentives and be reimbursed by CCCE to simplify payment process.

CONTRACTOR will provide invoices with details of incentive payments as well as fixed price and performance payments in a format required by CCCE. Invoices will be submitted to CCCE by the 15th of each month.

Budget
CONTRACTOR will be compensated with an administration budget based on a fixed price (Fixed Price Start-Up Fee) and performance basis (Performance Payment). The Fixed Price Start-Up Fee and Performance Payment covers all the services in the Scope of Work. The Fixed Price Start-Up Fee covers costs associated with Program start-up, including 1) contractor outreach and enrollment across CCCE’s service area; 2) coordination with additional TECH Clean California Initiative activities, including but not limited to contractor outreach, contractor training, vendor engagement, data analysis, data reporting, marketing, and pilot activities; and 3) configuration of the Incentive Clearinghouse. The Program Implementation Fee covers ongoing services described in the Scope of Work. The Fixed Price Start-Up Fee shall be $50,000 and the Program Implementation Fee shall be 7% of all incentives paid out over $500,000. Associated with Program start-up, the Fixed Price Start-Up Fee will be invoiced upon receiving the Program’s first claim through the Incentive Clearinghouse and demonstration of completed activities 1 – 3 above, deemed satisfactory by CCCE. Tables 1 and 2 below provide a breakdown of the budget and budget thresholds for each building type.

Table 1: Budget Breakdown
Expense Type Total
Incentive Reimbursement $1,600,000
Administration Costs $160,000
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $110,000
Total Costs $1,760,000
Table 2. Budget per Category
Category Minimum Budget Maximum Budget Per Project
Single Family (SF) $600,000 $100,000*
Multi-Family (MF) $400,000 $100,000
Low-Income (SF or MF) $200,000 $200,000
*Includes large group single family projects such as a military base.

These budgets per category are intended to promote geographic equity and diversity across the Program’s projects. Incentive caps per category may be changed at CCCE's discretion and documented in email.

EP-2022-013
DocuSign Envelope ID: A7C3C8D0-7DAF-423A-95E2-3A470663F71B

Amendment No. 2 To Agreement Between Energy Solutions and 3CE 1 AMENDMENT NO. 2

TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No.2 to the Services Agreement (“Agreement”) which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”); (CCCE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of a residential electrification program (“Program”); and
WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining CCCE incentive funds with state incentive funds; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022; and
WHEREAS, without changing the Not to Exceed amount of the Agreement, 3CE and CONTRACTOR seek to extend the term of the Agreement to September 30, 2024; and WHEREAS, 3CE seeks to further support victims of declared natural disasters by providing enhanced incentives through the Electrify Your Home Program; and WHEREAS, 3CE seeks to leverage State funding available through the Self Generation Incentive Program to further support customers who choose to participate in Demand Response programs.

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

1. Amend the first sentence of Section 3.1 to read as follows:

The term of this Agreement is from the date of execution until September 30th, 2024, unless sooner terminated pursuant to the terms of this Agreement.

2. Replace Exhibit A-1 with Exhibit A-2, attached and incorporated herein.

3. Except as provided herein, all remaining terms, conditions and provisions of the EP-2023-019
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0

Amendment No. 2 To Agreement Between Energy Solutions and 3CE 2 Agreement Amendment No. 1 are unchanged and unaffected by this Amendment No. 2 and shall continue in full force and effect.

4. The terms and conditions in this Amendment No. 2 shall control over any inconsistent terms and conditions in the original Agreement and Amendment No. 1.

5. A copy of this Amendment No. 2 shall be attached to the Original Agreement.

6. This Amendment No. 2 shall be effective when signed by both parties.

IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

Cohen Ventures, Inc. DBA Energy Solutions
BY:_________________________________
Samuel Cohen, President
Date: ____________________________
Central Coast Community Energy
BY:___________________________________
Robert M. Shaw, Chief Executive Officer
Date: ____________________________
Approved as to Form
BY:___________________________________
Charles McKee, General Counsel
Date: ____________________________
Approved as to Financial Terms
BY:__________________________________
Dewayne Woods, Chief Financial Officer
Date: ____________________________
EP-2023-019
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0 8/17/2023
8/24/2023
8/24/2023
8/24/2023

8/14/2023 3 Contract Number: EP-2023-019_
Exhibit A-2: Scope of Services
Task 1 - Program Administration
CONTRACTOR will collaborate with CCCE to develop, implement, and manage the CCCE Electrify Your Home Program (“The Program”) with activities including, but not limited to processing applications, paying incentives, reporting, and representing CCCE’s interests with third parties and participating contractors. CONTRACTOR will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.

Activities:
• Meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
CONTRACTOR will provide reports to CCCE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, CONTRACTOR’S software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit CCCE’s preferences.

CONTRACTOR will prepare a monthly report with a summary of current participation and performance indicators that are determined by CONTRACTOR and approved by CCCE. These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and CONTRACTOR.

Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.

Deliverables:
• Raw data provided ad hoc.

Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. CONTRACTOR will work with contractors to create DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0

8/14/2023 4 Contract Number: EP-2023-019_
installs in CCCE territory and provide support on how to submit applications through the Incentive Clearinghouse. Contractors previously enrolled in the TECH Clean California Initiative will automatically be enrolled in the CCCE program through an amendment to the TECH Trade Partner Participation Agreement.

Activities:
• Support for contractors in CCCE
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all Program incentives, including potential future incentives that may be integrated from other parties (e.g., TECH or other State incentives). The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse are to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.

CONTRACTOR will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

CONTRACTOR will process applications, conduct QA/QC, and pay incentives for CCCE on the Incentive Clearinghouse. If potential future incentives from third parties become available for program integration, payments to contractors will combine both CCCE and additional incentives into a single check paid to participants to simplify the payment process.

Activities:
• Configuration of Incentive Clearinghouse with CCCE incentives. • Processing and Payment of CCCE Incentive applications.

Table 1: Estimated Percentage of Time Per Task
Task Estimated Percent of Time
Task 1 – Program Administration 30%
Task 2 – Monthly Data Reports 20%
Task 3 – Contractor Outreach 20%
Task 4 – Incentive Clearinghouse 30%
Program Incentives and Implementation
Incentive Plan
The tables below show incentive values for Heat Pump Heating, Ventilation, and Air Conditioning (HPHVAC) and Heat Pump Water Heater (HPWH) measures under the Program. In all cases, the incentive is limited by the project cost, which will be a required application field. The incentives will be available throughout CCCE service area and are subject to change based on CCCE’s discretion. The CCCE funded incentives will be paid by the CONTRACTOR and dispersed through the Contractor’s Incentive Clearinghouse to provide a seamless experience to market actors.

DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0

8/14/2023 5 Contract Number: EP-2023-019_
Single Family Incentives
Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for single family homeowner customers converting from a gas or propane HVAC to all-electric HPHVAC.

Table 2: Unitary/Split System Heat Pump HVAC Incentives Equipment
Type* Size Category Sub-Category Tier
Seasonal/Part-Load Cooling
Efficiency
HSPF
CCCE
Incentive
per Unit
Unitary Split
System and
mini/multi-split
< 5.4 tons Ducted
Baseline HP Replacement $2,500
1 16.0 SEER 9.5 $3,000
2 18.0 SEER 10.0 $3,500
*Incentives available for installations providing full-home heating/cooling. Load calculations showing the installed mini-/multi-split serves full home will be required as part of the application.

The Program will provide an added incentive to income qualified applicants installing a HVAC measure.

The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.

Table 3: Income Qualified Kicker - HPHVAC
Measure Qualifier
CCCE
Incentive
per Unit
Income Qualified Kicker CARE/FERA enrollment $1,000
The Program will provide added incentives for the installation of HPWH measures when (a) a customer certifies to Contractor they are located at a single-family home that was damaged by a Governor-proclaimed disaster occurring in or after February 2023, (b) Contractor passes this information on to 3CE and (c) 3CE thereafter notifies Contractor the customer is eligible for the added incentive. Contractor shall have no responsibility for determining eligibility for such added incentives and shall bear no costs or liabilities with respect to added incentives paid to customers subsequently determined to be ineligible.

Table 4: Equipment Replacement Disaster Kicker - HPHVAC Measure Qualifier
CCCE
Incentive
per Unit
Equipment Replacement
Disaster Kicker - HPHVAC
Damage to home resulting
from declared natural
disaster
$3,000
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0

8/14/2023 6 Contract Number: EP-2023-019_
Heat Pump Water Heater (HPWH) Measures
The Program will provide incentives for single family homeowner customers converting from a gas or propane water heater to all-electric HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive. For projects that leverage incentive funding from the California Public Utility Commission’s Self Generation Incentive Program (SGIP) under CPUC Decision 22-04-036, 3CE will provide a reduced incentive amount that can be combined with SGIP funds. Table 5: Heat Pump Water Heater Incentives
Previous WH Fuel Type HPWH Capacity
CCCE
Incentive per
Unit
CCCE
Incentive per
Unit for
Projects that
Leverage SGIP
funding
Natural Gas/Propane
< 55 Gallons $3,300 $1,500
> 55 Gallons $3,800 $1,500
The Program will provide added incentive for income qualified residential customers installing HPWH measures. The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.Table 6: Income Qualified Kicker - HPWH Measure Qualifier
CCCE
Incentive
per Unit
Income Qualified Kicker CARE/FERA enrollment $1,000
The Program will provide added incentives for the installation of HPWH measures when (a) a customer certifies to 3CE or Contractor a project is located at a single-family home that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later and (b) Contractor passes this information onto 3CE and (c) 3CE thereafter notifies Contractor the customer is eligible for the added incentive. Contractor shall have no responsibility for determining eligibility for such added incentives and shall bear no costs or liabilities with respect to added incentives paid to customers subsequently determined to be ineligible.

Table 7: Equipment Replacement Disaster Kicker - HPWH
Measure Qualifier
CCCE
Incentive
per Unit
Equipment Replacement
Disaster Kicker - HPWH
Damage to home resulting
from declared natural
disaster
$1,000
DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0

8/14/2023 7 Contract Number: EP-2023-019_
Panel Replacement Measures
The Program will offer incentives for panel replacements or upgrades to single family homeowner customers that increase the effective panel capacity to support additional electrical load related to the installation of HPHVAC or HPWH measures. This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.

Table 8: Panel Upgrade and Replacement Incentives
Measure Category
CCCE
Incentive per
Unit
Panel upgrade $2,000
Multi-Family Incentives
Gas to Electric HPWH
The Program will provide incentives for multifamily building owner customers converting from a gas or propane water heater to all-electric HPWH.

Table 9: Multifamily Unit HPWH Incentives
Measure Market Rate
Incentives per Unit
Income
Qualified
Incentives per
Unit
Gas/propane to HPWH - unitary $2,100 $2,800
Upsizing kicker Gas/propane to
HPWH - unitary $1,050 $1,400
Non HPWH to HPWH - central $1,800 $2,400
Upsizing kicker non HPWH to
HPWH - central $900 $1,200
Panel/Electrical service
upgrade* $2,000 $2,800
Disaster Replacement Kicker** $1,000 $1,000
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
** The incentive is determined by a project located at a multi-family dwelling that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later.

DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0

8/14/2023 8 Contract Number: EP-2023-019_
Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for multifamily building owner customers converting from a gas or propane HVAC to all-electric HPHVAC.

Table 10: Multifamily Unit HP HVAC Incentives
Measure Market Rate Incentives
per Unit
Income
Qualified
Incentives per
Unit
Split or Rooftop HP - individual apt. $3,000 $4,000
PTHP, SPVHP, unitary through the
wall - individual apt. $750 $1,000
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$1,500 $2,000
HP HVAC - multiple apts. $1,500 $2,000
Split or Rooftop HP - common area $2,700 $3,600
PTHP, SPVHP, unitary through the
wall - common area
$450 $600
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$1,200 $1,600
Panel/Electrical service upgrade $2,000 $2,800
Disaster Replacement Kicker** $2,000 $2,000
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
** The incentive is determined by a project located at a multi-family dwelling that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later.

TECH Clean California Data Sharing
CCCE acknowledges and agrees that over the course of CONTRACTOR carrying out its obligations under this agreement, customer program participation data may need to be disclosed to CONTRACTOR’S subcontractors and representatives carrying out their obligations under the TECH Clean California program. In its agreements with subcontractors and representatives, CONTRACTOR will require the same adherence to all confidentiality and data security measures described by this Agreement, including Section 10. Record and Confidentiality and Exhibit C: Procedures for Release of Covered Information.

CONTRACTOR is solely responsible for any breach or non-compliance of these terms by its TECH Clean California subcontractors or CONTRACTOR representatives in safeguarding confidential information in accordance with this Agreement.

DocuSign Envelope ID: 5FDA430E-4DEC-4E66-9B7E-79B06528BBA0

DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-AD41CA02CF33 Amendment No. 3 To Agreement Between Energy Solutions and 3CE 1 AMENDMENT NO. 3

TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No. 3 to the Services Agreement (“Agreement”) which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”); (3CE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of the Electrify Your Home Program (“Program”); and
WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining state incentive funds with the 3CE’s Program; and
WHEREAS, due to high demand, in May 2022, TECH Clean California Initiative funds became substantially reserved throughout CCCE’s service area, impacting the Program’s ability to provide CCCE customers with incentives at the desired levels to accelerate electrification; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022 to extend the Agreement, with no change to the Not to Exceed Amount, and to modify the Scope of Work to reflect changes in the TECH Clean California Initiative; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 2 to the Agreement on August 24, 2023 to extend the term of the Agreement to September 30, 2024, with no change to the Not to Exceed Amount, and to modify the Scope of Work to support victims of declared natural disasters and to more effectively leverage State Funds; and WHEREAS, in the Summer of 2023, the second release of TECH Clean California, combined with the Parties continued marketing and outreach efforts, and growing contractor participation led to rapid acceleration of Program applications, resulting in the substantial reservation of Program funds allowed under the contract; and WHEREAS, without changing the term of the Agreement, 3CE and CONTRACTOR seek to extend the Not to Exceed Amount of the Agreement by $1,500,000 for a total Not to Exceed Amount of $3,260,000 to further support building electrification and the DocuSign Envelope ID: 04EDE983-DB32-42B0-9231-2F12B0EDF8A9 DocuSign Envelope ID: 41EE1C8E-4470-4CA6-84F9-9E0D1871C8AC

DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-AD41CA02CF33 Amendment No. 3 To Agreement Between Energy Solutions and 3CE 2 Electrify Your Home Program throughout Fiscal Year 2023-24.

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

1. Amend Section 2.1 to read as follows:
3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B-1, subject to the limitations set forth in this Agreement. The total amount payable by 3CE to CONTRACTOR under this Agreement shall not exceed the sum of $3,260,000.00.

2. Amend Table 1: Budget Breakdown in Exhibit B-1 to read as follows:

Expense Type Total
Incentive Reimbursement $2,963,636
Administration Costs $296,634
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $246,364
Total Costs $3,260,000

3. The terms and conditions in this Amendment No. 3 shall control over any inconsistent terms and conditions in the original Agreement and Amendment No. 2.

4. A copy of this Amendment No. 3 shall be attached to the Original Agreement.

5. This Amendment No. 3 shall be effective when signed by both parties. [Signatures are on following page]
DocuSign Envelope ID: 04EDE983-DB32-42B0-9231-2F12B0EDF8A9 DocuSign Envelope ID: 41EE1C8E-4470-4CA6-84F9-9E0D1871C8AC

DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-AD41CA02CF33 IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

Energy Solutions Central Coast Community Energy
BY: BY:

Title:_Chief Operating Officer
Date: 10/25/2023 |_2:40 PM PDT
Robert M. Shaw, CEO
Date:

Approved as to Form
BY:

Charles McKee, General Counsel
Date:

Approved as to Financial Terms
BY:

Dewayne Woods, Chief Financial Officer
Date:
10/25/2023 3 Contract Number: EP-2023-024
DocuSign Envelope ID: 04EDE983-DB32-42B0-9231-2F12B0EDF8A9 10/26/2023
10/30/2023
DocuSign Envelope ID: 41EE1C8E-4470-4CA6-84F9-9E0D1871C8AC 11/8/2023

Docusign Envelope ID: C2C2ACBB-B798-4E7F-9169-213FE208CD8E 1 EP-2024-034
AMENDMENT NO. 5
TO SERVICES AGREEMENT BETWEEN COHEN VENTURES INC. dba Energy Solutions AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No. 5 to the Services Agreement (“Agreement”), which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions, a California corporation (hereinafter “CONTRACTOR”); (3CE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of the Electrify Your Home Program in a not to exceed contract amount of $1,760,000 (“Program”).

WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining state incentive funds with the 3CE’s Program; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022 to extend the Agreement, with no change to the Not to Exceed Amount, and to modify the Scope of Work to reflect changes in the TECH Clean California Initiative.

WHEREAS, 3CE and CONTRACTOR executed Amendment No. 2 to the Agreement on August 24, 2023 to extend the term of the Agreement to September 30, 2024, with no change to the Not to Exceed Amount, and to modify the Scope of Work to support victims of declared natural disasters and to more effectively leverage State Funds.

WHEREAS, 3CE and CONTRACTOR executed Amendment No. 3 to the Agreement on November, 8, 2023 to increase the Not to Exceed Amount by $1,500,000 for a total not to exceed contract amount of $3,260,000 without changing the terms of the Agreement to allow the Electrify Your Home Program to continue through Fiscal Year 2023-24.

WHEREAS, 3CE and CONTRACTOR executed Amendment No. 4 to the Agreement on August, 31, 2024 to increase the Not to Exceed Amount by $565,000 for a total not to exceed contract amount of $3,825,000, and extend the term of the agreement to January 31, 2025 to allow the Electrify Your Home Program to continue operation into fiscal year (“FY”) 2024-2025 and enhance customer engagement.

WHEREAS, 3CE and CONTRACTOR seek continued Electrify Your Home Program implementation, which will increase the total not to exceed amount by $990,000 for a total agreement not to exceed amount of $4,815,000, and will extend the term of the agreement to September 30, 2025.

AGREEMENT
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Envelope ID: C2C2ACBB-B798-4E7F-9169-213FE208CD8E 2 EP-2024-034
NOW, THEREFORE, in consideration of the mutual obligations of this Amendment, the Parties agree to amend the Agreement as follows:

1. Amend section 2.1 Payment Provisionsto read as follows:

2.1 3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B-2, subject to the limitations set forth in this Agreement. The total amount payable by CCCE to CONTRACTOR under this Agreement shall not exceed (the “NTE”) the sum of $4,815,000.

2. Amend the first sentence of Section 3.1, as follows:

3.1 The term of this Agreement is from the date of execution until September 30st, 2025, unless sooner terminated pursuant to the terms of this Agreement.

3. Section 14.1, NOTICES, shall be revised asfollows:

Notices required under this agreement shall be delivered personally, by email, or by first class, postage pre-paid mail to 3CE and CONTRACTORS contract administrators at the addresses listed below. In the case of email, NOTICES are considered received on the date of confirmation of receipt or read receipt:

Central Coast Community Energy CONTRACTOR
Christopher Cook Contract Services
70 Garden Ct. Suite 300 449 15th St Suite 400
Monterey, CA 93940 Oakland, CA 94612
Email: [email protected] Email: [email protected]

4. Exhibit B-1 shall be replaced with Exhibit B-2, attached.

5. A copy of this Amendment No. 5 shall be attached to the Original Agreement.

6. A copy of this Amendment No. 5 shall be effective upon the date of the last signature.

All provisions of the original agreement and subsequent amendments, except as modified by this Amendment No. 5, remain in full force and effect. In the event of any conflict, inconsistency, or incongruity between any provision of this Amendment and any provision of the original agreement, the provisions of this Amendment No. 5 shall govern and control. [Signature page to follow.]
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Envelope ID: C2C2ACBB-B798-4E7F-9169-213FE208CD8E 3 EP-2024-034
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 5 as of the date of last signature.

Cohen Ventures Inc.

BY:

Sam Cohen, President
10/31/2024 | 2:36 PM PDT
Date:

Central Coast Community Energy
BY:

Robert Shaw, Chief Executive Officer
Date: _____________________________________
Cohen Ventures Inc. Approved as to Form
BY: ________________________________
Marina Pantchenko, Deputy General Counsel
BY:

Angela Rodriguez, Chief Financial Officer
10/31/2024 | 3:25 PM PDT
Date: Date:

Approved asto Financial Terms
BY:

Dewayne Woods, Chief Financial Officer
Date:_____________________________________
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56 11/18/2024
11/18/2024
11/18/2024

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 2 EP-2024-030
Exhibit B-2: Payment Terms
Incentive Reimbursement
CONTRACTOR will pay incentives and be reimbursed by CCCE to simplify payment process. CONTRACTOR will provide invoices with details of incentive payments as well as fixed price and performance payments in a format required by CCCE. Invoices will be submitted to CCCE by the 15th of each month.

Budget
CONTRACTOR will be compensated with an administration budget based on a fixed price (Fixed Price Start-Up Fee) and performance basis (Performance Payment). The Fixed Price Start-Up Fee and Performance Payment covers all the services in the Scope of Work. The Fixed Price Start-Up Fee covers costs associated with Program start-up, including 1) contractor outreach and enrollment across CCCE’s service area; 2) coordination with additional TECH Clean California Initiative activities, including but not limited to contractor outreach, contractor training, vendor engagement, data analysis, data reporting, marketing, and pilot activities; and 3) configuration of the Incentive Clearinghouse. The Program Implementation Fee covers ongoing services described in the Scope of Work. The Fixed Price Start-Up Fee shall be $50,000 and the Program Implementation Fee shall be 7% of all incentives paid out over $500,000. Associated with Program start-up, the Fixed Price Start-Up Fee will be invoiced upon receiving the Program’s first claim through the Incentive Clearinghouse and demonstration of completed activities 1 – 3 above, deemed satisfactory by CCCE. Tables 1 and 2 below provide a breakdown of the budget and budget thresholds for each building type.

Table 1: Budget Breakdown
Expense Type Total
Incentive Reimbursement $4,363,636
Administration Costs $451,364
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $386,364
Outreach Events* $15,000
Total Costs $4,815,000
*Outreach Event described in Scope of Work Task 3, which are beyond those support by TECH, will require written approval from 3CE.

Table 2. Budget per Category
Category Minimum Budget Maximum Budget Per Project
Single Family (SF) $600,000 $100,000*
Multi-Family (MF) $400,000 $100,000
Low-Income (SF or MF) $200,000 $200,000
*Includes large group single family projects such as a military base.

These budgets per category are intended to promote geographic equity and diversity across the Program’s projects. Incentive caps per category may be changed at CCCE's discretion and documented in email.

Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Envelope ID: C2C2ACBB-B798-4E7F-9169-213FE208CD8E 1 EP-2024-034
AMENDMENT NO. 5
TO SERVICES AGREEMENT BETWEEN COHEN VENTURES INC. dba Energy Solutions AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No. 5 to the Services Agreement (“Agreement”), which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions, a California corporation (hereinafter “CONTRACTOR”); (3CE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of the Electrify Your Home Program in a not to exceed contract amount of $1,760,000 (“Program”).

WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining state incentive funds with the 3CE’s Program; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022 to extend the Agreement, with no change to the Not to Exceed Amount, and to modify the Scope of Work to reflect changes in the TECH Clean California Initiative.

WHEREAS, 3CE and CONTRACTOR executed Amendment No. 2 to the Agreement on August 24, 2023 to extend the term of the Agreement to September 30, 2024, with no change to the Not to Exceed Amount, and to modify the Scope of Work to support victims of declared natural disasters and to more effectively leverage State Funds.

WHEREAS, 3CE and CONTRACTOR executed Amendment No. 3 to the Agreement on November, 8, 2023 to increase the Not to Exceed Amount by $1,500,000 for a total not to exceed contract amount of $3,260,000 without changing the terms of the Agreement to allow the Electrify Your Home Program to continue through Fiscal Year 2023-24.

WHEREAS, 3CE and CONTRACTOR executed Amendment No. 4 to the Agreement on August, 31, 2024 to increase the Not to Exceed Amount by $565,000 for a total not to exceed contract amount of $3,825,000, and extend the term of the agreement to January 31, 2025 to allow the Electrify Your Home Program to continue operation into fiscal year (“FY”) 2024-2025 and enhance customer engagement.

WHEREAS, 3CE and CONTRACTOR seek continued Electrify Your Home Program implementation, which will increase the total not to exceed amount by $990,000 for a total agreement not to exceed amount of $4,815,000, and will extend the term of the agreement to September 30, 2025.

AGREEMENT
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Envelope ID: C2C2ACBB-B798-4E7F-9169-213FE208CD8E 2 EP-2024-034
NOW, THEREFORE, in consideration of the mutual obligations of this Amendment, the Parties agree to amend the Agreement as follows:

1. Amend section 2.1 Payment Provisionsto read as follows:

2.1 3CE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B-2, subject to the limitations set forth in this Agreement. The total amount payable by CCCE to CONTRACTOR under this Agreement shall not exceed (the “NTE”) the sum of $4,815,000.

2. Amend the first sentence of Section 3.1, as follows:

3.1 The term of this Agreement is from the date of execution until September 30st, 2025, unless sooner terminated pursuant to the terms of this Agreement.

3. Section 14.1, NOTICES, shall be revised asfollows:

Notices required under this agreement shall be delivered personally, by email, or by first class, postage pre-paid mail to 3CE and CONTRACTORS contract administrators at the addresses listed below. In the case of email, NOTICES are considered received on the date of confirmation of receipt or read receipt:

Central Coast Community Energy CONTRACTOR
Christopher Cook Contract Services
70 Garden Ct. Suite 300 449 15th St Suite 400
Monterey, CA 93940 Oakland, CA 94612
Email: [email protected] Email: [email protected]

4. Exhibit B-1 shall be replaced with Exhibit B-2, attached.

5. A copy of this Amendment No. 5 shall be attached to the Original Agreement.

6. A copy of this Amendment No. 5 shall be effective upon the date of the last signature.

All provisions of the original agreement and subsequent amendments, except as modified by this Amendment No. 5, remain in full force and effect. In the event of any conflict, inconsistency, or incongruity between any provision of this Amendment and any provision of the original agreement, the provisions of this Amendment No. 5 shall govern and control. [Signature page to follow.]
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Envelope ID: C2C2ACBB-B798-4E7F-9169-213FE208CD8E 3 EP-2024-034
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 5 as of the date of last signature.

Cohen Ventures Inc.

BY:

Sam Cohen, President
10/31/2024 | 2:36 PM PDT
Date:

Central Coast Community Energy
BY:

Robert Shaw, Chief Executive Officer
Date: _____________________________________
Cohen Ventures Inc. Approved as to Form
BY: ________________________________
Marina Pantchenko, Deputy General Counsel
BY:

Angela Rodriguez, Chief Financial Officer
10/31/2024 | 3:25 PM PDT
Date: Date:

Approved asto Financial Terms
BY:

Dewayne Woods, Chief Financial Officer
Date:_____________________________________
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56 11/18/2024
11/18/2024
11/18/2024

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 2 EP-2024-030
Exhibit B-2: Payment Terms
Incentive Reimbursement
CONTRACTOR will pay incentives and be reimbursed by CCCE to simplify payment process. CONTRACTOR will provide invoices with details of incentive payments as well as fixed price and performance payments in a format required by CCCE. Invoices will be submitted to CCCE by the 15th of each month.

Budget
CONTRACTOR will be compensated with an administration budget based on a fixed price (Fixed Price Start-Up Fee) and performance basis (Performance Payment). The Fixed Price Start-Up Fee and Performance Payment covers all the services in the Scope of Work. The Fixed Price Start-Up Fee covers costs associated with Program start-up, including 1) contractor outreach and enrollment across CCCE’s service area; 2) coordination with additional TECH Clean California Initiative activities, including but not limited to contractor outreach, contractor training, vendor engagement, data analysis, data reporting, marketing, and pilot activities; and 3) configuration of the Incentive Clearinghouse. The Program Implementation Fee covers ongoing services described in the Scope of Work. The Fixed Price Start-Up Fee shall be $50,000 and the Program Implementation Fee shall be 7% of all incentives paid out over $500,000. Associated with Program start-up, the Fixed Price Start-Up Fee will be invoiced upon receiving the Program’s first claim through the Incentive Clearinghouse and demonstration of completed activities 1 – 3 above, deemed satisfactory by CCCE. Tables 1 and 2 below provide a breakdown of the budget and budget thresholds for each building type.

Table 1: Budget Breakdown
Expense Type Total
Incentive Reimbursement $4,363,636
Administration Costs $451,364
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $386,364
Outreach Events* $15,000
Total Costs $4,815,000
*Outreach Event described in Scope of Work Task 3, which are beyond those support by TECH, will require written approval from 3CE.

Table 2. Budget per Category
Category Minimum Budget Maximum Budget Per Project
Single Family (SF) $600,000 $100,000*
Multi-Family (MF) $400,000 $100,000
Low-Income (SF or MF) $200,000 $200,000
*Includes large group single family projects such as a military base.

These budgets per category are intended to promote geographic equity and diversity across the Program’s projects. Incentive caps per category may be changed at CCCE's discretion and documented in email.

Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 3 EP-2024-030
AMENDMENT NO. 4
TO SERVICES AGREEMENT BETWEEN COHEN VENTURES INC. dba Energy Solutions AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No. 4 to the Services Agreement (“Agreement”), which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions, a California corporation (hereinafter “CONTRACTOR”); (3CE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of the Electrify Your Home Program in a not to exceed contract amount of $1,760,000 (“Program”), a copy of the Original Agreement, is attached to this Amendment as Exhibit D; and
WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining state incentive funds with the 3CE’s Program; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022 to extend the Agreement, with no change to the Not to Exceed Amount, and to modify the Scope of Work to reflect changes in the TECH Clean California Initiative. A copy of Amendment No. 1 is attached to this Amendment as Exhibit E; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 2 to the Agreement on August 24, 2023 to extend the term of the Agreement to September 30, 2024, with no change to the Not to Exceed Amount, and to modify the Scope of Work to support victims of declared natural disasters and to more effectively leverage State Funds. A copy of Amendment No. 2 is attached to this Amendment as Exhibit F; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 3 to the Agreement on November, 8, 2023 to increase the Not to Exceed Amount by $1,500,000 for a total not to exceed contract amount of $3,260,000 without changing the terms of the Agreement to allow the Electrify Your Home Program to continue through Fiscal Year 2023-24. A copy of Amendment No. 3 is attached to this Amendment as Exhibit G;
WHEREAS, 3CE now requires continued Electrify Your Home program implementation and enhanced customer engagement from CONTRACTOR in fiscal years (“FY”) 2024-2025, which will increase the total not to exceed amount by $565,000.00 for a total spend of $3,825,000, and extend the term of the agreement to January 31st, 2025.

Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 4 EP-2024-030

AGREEMENT
NOW, THEREFORE, in consideration of the mutual obligations of this Amendment, the Parties agree to amend the Agreement as follows:

1. Amend section 2.1 Payment Provisionsto read asfollows:

2.1 CCCE shall pay the CONTRACTOR in accordance with the payment provisions set forth in Exhibit B-1, subject to the limitations set forth in this Agreement. The total amount payable by CCCE to CONTRACTOR under this Agreement shall not exceed (the “NTE”) the sum of $3,825,000.

2. Amend the firstsentence of Section 3.1, asfollows:

The term of this Agreement is from the date of execution until January 31st, 2025, unless sooner terminated pursuant to the terms of this Agreement.

3. Replace Exhibit A-2 with Exhibit A-3, attached and incorporated herein.

4. Amend Table 1: Budget Breakdown in Exhibit B-1 to read asfollows:

Expense Type Total
Incentive Reimbursement $3,463,636
Administration Costs $361,364
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $296,364
Outreach Events* $15,000
Total Costs $3,825,000
*Outreach Event described in Scope of Work Task 3, which are beyond those support by TECH, will require written approval from 3CE.

Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 5 EP-2024-030
All provisions of the original agreement and subsequent amendments, except as modified by this Amendment No. 4,remain in full force and effect. In the event of any conflict, inconsistency, orincongruity between any provision of this Amendment and any provision of the original agreement, the provisions of this Amendment No. 4 shall govern and control.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 4 as of the date of last signature.

Cohen Ventures Inc. Central Coast Community Energy
BY: BY:

Chris Burmester, Chief Operating Officer Robert Shaw, Chief Executive Officer 8/2/2024 8/31/2024
Date: Date:

Cohen Ventures Inc.

BY:

Angela Rodriguez, Chief Financial Officer
Approved as to Form
BY:

Marina Pantchenko, Deputy General Counsel
Date: 8/2/2024 Date:
8/15/2024
Approved asto Financial Terms
BY:

Dewayne Woods, Chief Financial Officer
8/26/2024
Date:

Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 6 EP-2024-030
Exhibit A-1: Scope of Services
Task 1 - Program Administration
CONTRACTOR will collaborate with 3CE to develop, implement, and manage the 3CE Electrify Your Home Program (“The Program”) with activities including, but not limited to processing applications, paying incentives, reporting, and representing 3CE’s interests with third parties and participating contractors.

CONTRACTOR will host monthly calls to review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.

Activities:
• Meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
CONTRACTOR will provide reports to 3CE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, CONTRACTOR’S software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit 3CE’s preferences.

CONTRACTOR will prepare a monthly report with a summary of current participation and performance indicators that are determined by CONTRACTOR and approved by 3CE.

These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between 3CE and CONTRACTOR.

Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
Allsales data collected from participantsin claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR willreport on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.

Deliverables:
• Raw data provided ad hoc.

Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 7 EP-2024-030
Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in 3CE territory are aware of the higher incentives sponsored by 3CE. CONTRACTOR will work with contractors to create installs in 3CE territory and provide support on how to submit applications through the Incentive Clearinghouse. Contractors previously enrolled in the TECH Clean California Initiative will automatically be enrolled in the 3CE program through an amendment to the TECH Trade Partner Participation Agreement.

Activities:
• Support for contractors who operate in 3CE’s service territory. Support includes, but is not limited to, email and phone correspondence to discuss program issues, email newsletter updates regarding program changes/updates, maintenance of contractor facing resources, and review as needed of 3CE developed contractor resources
• Organize and participate in up to 8 in-person Distributor and Manufacturer supported events to support contractor awareness and enrollment at a fixed cost of $2,500 - $4,500 per event, depending on size. Potential distributor partnersinclude, but are not limited to: Ferguson, Slakey Brothers, Johnstone Supply, RSD and US Air Conditioning • Coordinate with 3CE’s Communication Team to Identify trade organizations supporting contractors along the Central Coast and organize and participate in-person or virtual eventsto inform their members about EYH
• Provide copywriting and messaging support for 3CE on direct to contractor mailers Deliverables:
• Report out of number of enrolled contractors asrequested • Monthly outreach activity summary
• Post-eventsummary writeup that includes overview of the event, any materials created forthe event, number of attendees, and any key takeaways
Tabel 1: Fixed PriceOutreach Fee for events notsupport by TECH Event Type Cost Per Event Activities covered by Cost
Event with lessthan 100 projected
attendees
$2,500
• Pre-event prep time
• Travel and labor to
attend event for 1
consultant
• Material
development
Event with more than 100 projected
attendees $4,500 • Pre-event prep time
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 8 EP-2024-030
• Travel and laborto
attend event for 1
consultant and 1
coordinator
• Material
development
Total NTE $15,000
Task 4 - Incentive Clearinghouse and Incentive Payments The Incentive Clearinghouse will be the central processing platform for all Program incentives, including potential future incentives that may be integrated from other parties (e.g., TECH or other State incentives). The Incentive Clearinghouse will have the functionality to layer incentives across multiple program administrators. The goals of the Incentive Clearinghouse are to 1) simplify the participant experience by standardizing application requirements and the application submittal process, and 2) create a more comprehensive project data set for public reporting purposes.

CONTRACTOR will configure the incentive clearinghouse with Single Family and Multi-Family Incentives.

CONTRACTOR will process applications, conduct QA/QC, and pay incentives for 3CE on the Incentive Clearinghouse. If potential future incentives from third parties become available for program integration, paymentsto contractors will combine both 3CE and additional incentives into a single check paid to participants to simplify the payment process.

Activities:
• Configuration of Incentive Clearinghouse with 3CE incentives. • Processing and Payment of 3CE Incentive applications.

Table 2: Estimated Percentage of Time Per Task
Task Estimated Percent of Time
Task 1 – Program Administration 30%
Task 2 – Monthly Data Reports 20%
Task 3 – Contractor Outreach 20%
Task 4 – Incentive Clearinghouse 30%
Program Incentives and Implementation
Incentive Plan
The tables below show incentive values for Heat Pump Heating, Ventilation, and Air Conditioning (HPHVAC) and Heat Pump Water Heater(HPWH) measures underthe Program. In all cases, the incentive is limited by the project cost, which will be a required application field. In cases where both TECH and 3CE are contributing to a measure, the base 3CE amount is listed in Table A while the combined TECH Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 9 EP-2024-030
and 3CE contributions are reflected in Table B. The incentives will be available throughout 3CE service area. Should TECH’s budget become depleted in any category, 3CE incentive contributions may increase up to the totals in Table B, upon 3CE discretion and written approval. The 3CE funded incentives will be paid by the CONTRACTOR and dispersed through the Contractor’s Incentive Clearinghouse to provide a seamless experience to market actors.

Single Family Incentives
Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentives for single family homeowner customers converting from a non-electric HVAC to all-electric HPHVAC. Per the language in the Incentive Plan section, 3CE reserves the right to adjust the contribution up to the combined TECH and 3CE incentive listed in Table 3B.

Table 3A: Air Source Heat Pump HVAC Incentives, 3CE Base Contribution Equipment Type* Doesthe Customer
Have Previous AC?
What is being done with previous
furnace?
3CE Base
Contribution per
Unit
EnergySTAR Listed Air Source HP
HVAC with compressor types of
either Continuously Variable or 2-
stage
Yes Fully Decommissioned $1,500
No Fully Decommissioned $1,000
Yes Remainsto be used as blower only $1,000
No Remainsto be used as blower only $1,000
*Incentives available for installations providing full-home heating/cooling.

Table 3B: Air Source Heat Pump HVAC Incentives, Combined TECH and 3CE Incentive Equipment Type* Doesthe Customer
Have Previous AC?
What is being done with previous
furnace?
3CE and TECH
Combined
Incentive per Unit
EnergySTAR Listed Air Source HP
HVAC with compressor types of
either Continuously Variable or 2-
stage
Yes Fully Decommissioned $3,000
No Fully Decommissioned $2,000
Yes Remainsto be used as blower only $2,000
No Remainsto be used as blower only $2,000
*Incentives available for installations providing full-home heating/cooling.

The Program will provide an added incentive to income qualified applicantsinstalling a HVAC measure.

The incentive is for customers below 150% AMI. The incentive is a flat rate of $1,000/project.

Qualification will be determined through the use of a customerincome verification tool provided by TECH Clean California.

Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 10 EP-2024-030
Table 4: Air Source Heat Pump Income Qualified Kicker
Measure Qualifier
3CE
Incentive
per
project
Income Qualified Kicker Below 150% AMI $1,000
The Program will provide added incentives for the installation of HP HVAC measures when (a) a customer certifies to Contractor they are located at a single-family home that was damaged by a Governor-proclaimed disaster occurring in or after February 2023, (b) Contractor passes this information on to 3CE and (c) 3CE thereafter notifies Contractor the customer is eligible for the added incentive. Contractor shall have no responsibility for determining eligibility forsuch added incentives and shall bear no costs or liabilities with respect to added incentives paid to customers subsequently determined to be ineligible.

Table 5: Air Source Heat Pump Disaster Rebuild Kicker
Measure Qualifier
3CE
Incentive
per
Project
Damage to home
Equipment Replacement
Disaster Kicker - HPHVAC
resulting from
declared natural $3,000
disaster
Heat Pump Water Heater (HPWH) Measures
The Program will provide incentives for single family homeowner customers converting from a non-electric water heater to all-electric HPWH. In all cases, the Program will require applicants to provide evidence of the previous unit’s fuel type to obtain the incentive. For projects that leverage incentive funding from the California Public Utility Commission’s Self Generation Incentive Program (SGIP) under CPUC Decision 22-04-036, 3CE will provide a reduced incentive amount that can be layered with SGIP funds. There will be two pathwaysfor 3CE customersto receive incentives – the Grid-Connected HPWH pathway that follows the SGIP rules, and the non-Connected HPWH that does not require demand response or TOU rate enrollment.

Grid-Connected Heat Pump Water Heater Incentives
This category is for customers who meet all of the following criteria: (1) Replace a non-electric unit with a HPWH with load-shifting capabilities; (2) Enroll in an eligible time-of-use rate; (3) Program HPWH to follow the time-of-use rate; and (4) Enroll in an eligible demand response (DR) program. A complete set Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 11 EP-2024-030
of installation requirements for TECH can be found here: https://frontierenergy-tech.my.site.com/contractorsupport/s/article/Heat-Pump-Water-Heater-Install-Requirements To qualify for equity rates, customers must be on a CARE/FERA rate.

Per the language in the Incentive Plan section, 3CE reserves the right to adjust the contribution up to the combined TECH and 3CE incentive listed in Tables 6B and 7B.

Table 6A: Grid-Connected HPWH Incentives, 3CE Base Contribution Previous Water Heater
Fuel Type
Customer’s
Electricity
Provider
Equity
Customer?
Installed HPWH
Capacity
(Gallons)
3CE Base
Contribution
per Unit
PG&E
No
<55 1,500
>=55 1,500
Yes
<55 1,500
Natural >=55 1,500
Gas/Propane/Other <55 1,500
SCE
No
>=55 1,500
Yes
<55 1,500
>=55 1,500
Table 6B: Grid-Connected HPWH Incentives, Combined TECH and 3CE Incentive Previous Water Heater
Fuel Type
Customer’s
Electricity
Provider
Equity
Customer?
Installed HPWH
Capacity
(Gallons)
TECH + 3CE
Combined
incentive per
unit
PG&E
No
<55 $4,600
>=55 $5,300
Yes
<55 $5,685
Natural >=55 $6,385
Gas/Propane/Other <55 $4,600
SCE
No
>=55 $5,300
Yes
<55 $5,685
>=55 $6,385
Table 7A: Grid-Connected HPWH Electrical and Pre-Electrification Kicker, 3CE Base Contribution Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 12 EP-2024-030
Incentive
Category Qualifier Equity Customer? 3CE Base Contribution Electrical/Pre-electrification
Please referto the following article for a detailed list of eligible costs per customer segment:
https://frontierenergy-tech.my.site.com/contractorsupport/s/article/ElectricalPanel-Upgrades Yes $0
No $0
Table 7B: Grid-Connected HPWH Electrical and Pre-Electrification Kicker, Combined TECH and 3CE Incentive
Incentive
Category Qualifier Equity Customer?
TECH+
3CE
Combined
Incentive
Electrical/Pre-electrification
Please referto the following article for a detailed list of eligible costs per customer segment:
https://frontierenergy-tech.my.site.com/contractorsupport/s/article/ElectricalPanel-Upgrades Yes $4,000*
No $0
*Capped at 100% of reported Electrical + Pre-Electrification costs Non-Connected HPWH Incentives
This category of incentive isfor customers who do not want to meet the full requirements of the "Connected HPWH" Category. This category of incentives will be fully funded by 3CE without a contribution from TECH:

Table 8: Non-Connected HPWH Incentives
Previous WH Fuel
Type HPWH Capacity
3CE
Incentive
per Unit
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 13 EP-2024-030
Natural Gas/Propane
< 55 Gallons $3,300
> 55 Gallons $3,800
The Program will provide added incentive for income qualified residential customers installing HPWH measures. The incentive is determined by active enrollment in the CARE or FERA programs. The incentive is a flat rate of $1,000/unit.

Table 9: Non-Connected HPWH Incentives Income Qualified Kicker Measure Qualifier
3CE
Incentive
per Unit
Income Qualified Kicker CARE/FERA
enrollment $1,000
The Program will provide added incentives for the installation of HPWH measures when (a) a customer certifies to 3CE or Contractor a project is located at a single-family home that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later and (b) Contractor passes this information onto 3CE and (c) 3CE thereafter notifies Contractor the customer is eligible for the added incentive. Contractorshall have no responsibility for determining eligibility forsuch added incentives and shall bear no costs or liabilities with respect to added incentives paid to customers subsequently determined to be ineligible.

Table 10: Non-Connected HPWH Incentives Disaster Kicker - HPWH Measure Qualifier
3CE
Incentive
per Unit
Damage to home
Equipment Replacement
Disaster Kicker - HPWH
resulting from
declared natural $1,000
disaster
Panel Replacement Measures
The Program will offer incentives for panel replacements or upgrades to single family homeowner customers that increase the effective panel capacity to support additional electrical load related to the installation of HPHVAC or HPWH measures. This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.

Table 11: Panel Upgrade and Replacement Incentives
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 14 EP-2024-030
Measure Category
3CE
Incentive
per Unit
Panel upgrade $2,000*
*Customers pursuing a Grid-Connected HPWH will deferto the electrical and pre-electrification incentive structure listed in Table 6.

Multi-Family Incentives
Gasto Electric HPWH
The Program will provide incentivesfor multifamily building owner customers converting from a gas or propane water heater to all-electric HPWH.

Table 12: Multifamily Unit HPWH Incentives
Measure Market Rate
Incentives per Unit
Income
Qualified
Incentives per
Unit
Gas/propane to HPWH - unitary $2,100 $2,800
Upsizing kicker Gas/propane to
HPWH - unitary $1,050 $1,400
Non HPWH to HPWH - central $1,800 $2,400
Upsizing kicker non HPWH to
HPWH - central $900 $1,200
Panel/Electricalservice
upgrade* $2,000 $2,800
Disaster Replacement Kicker** $1,000 $1,000
*Thisincludes materials and laborrelated to the panelreplacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
** The incentive is determined by a project located at a multi-family dwelling that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later.

Heat Pump Heating Ventilation and Air Conditioning (HVAC) Measures The Program will provide incentivesfor multifamily building owner customers converting from a gas or propane HVAC to all-electric HPHVAC.

Table 13: Multifamily Unit HP HVAC Incentives
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

Docusign Docusign Docusign Envelope Envelope ID: Envelope ID: B749D8B8 ID:85B9FFE7 C2C2ACBB-EC1A B25 -B798--4249 4EB2 -4E7F-BE2D -A747 -9169-986EAF6D6B7C A4F9DFD05859 -213FE208CD8E 15 EP-2024-030
Measure Market Rate Incentives
per Unit
Income
Qualified
Incentives per
Unit
Split or Rooftop HP - individual apt. $3,000 $4,000
PTHP, SPVHP, unitary through the
wall - individual apt. $750 $1,000
PTHP, SPVHP, unitary through the
wall - individual apt. (Variable
capacity/inverter driven (previous
heat source = all except PTHPs)
$1,500 $2,000
HP HVAC - multiple apts. $1,500 $2,000
Split or Rooftop HP - common area $2,700 $3,600
PTHP, SPVHP, unitary through the
wall - common area $450 $600
PTHP, SPVHP, unitary through the
wall - common area (Variable
capacity/inverter driven, previous
heat source = non HP systems)
$1,200 $1,600
Panel/Electrical service upgrade $2,000 $2,800
Disaster Replacement Kicker** $2,000 $2,000
*This includes materials and labor related to the panel replacement or upgrade and may include smart load center upgrades. Panel upgrade/replacement must be done in combination with a heat pump installation.
** The incentive is determined by a project located at a multi-family dwelling that was damaged by a Governor-proclaimed disaster occurring in February 2023 or later.

Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-

Docusign Docusign Envelope ID: Envelope ID:85B9FFE7 C2C2ACBB-EC1A -B798-4EB2 -4E7F-A747 -9169-A4F9DFD05859 -213FE208CD8E Amendment No. 3 To Agreement Between Energy Solutions and 3CE 1 AMENDMENT NO. 3

TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No. 3 to the Services Agreement (“Agreement”) which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”); (3CE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of the Electrify Your Home Program (“Program”); and
WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining state incentive funds with the 3CE’s Program; and
WHEREAS, due to high demand, in May 2022, TECH Clean California Initiative funds became substantially reserved throughout CCCE’s service area, impacting the Program’s ability to provide CCCE customers with incentives at the desired levels to accelerate electrification; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022 to extend the Agreement, with no change to the Not to Exceed Amount, and to modify the Scope of Work to reflect changes in the TECH Clean California Initiative; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 2 to the Agreement on August 24, 2023 to extend the term of the Agreement to September 30, 2024, with no change to the Not to Exceed Amount, and to modify the Scope of Work to support victims of declared natural disasters and to more effectively leverage State Funds; and WHEREAS, in the Summer of 2023, the second release of TECH Clean California, combined with the Parties continued marketing and outreach efforts, and growing contractor participation led to rapid acceleration of Program applications,resulting in the substantial reservation of Program funds allowed under the contract; and WHEREAS, without changing the term of the Agreement, 3CE and CONTRACTOR seek Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-

Docusign Docusign Envelope ID: Envelope ID:85B9FFE7 C2C2ACBB-EC1A -B798-4EB2 -4E7F-A747 -9169-A4F9DFD05859 -213FE208CD8E Amendment No. 3 To Agreement Between Energy Solutions and 3CE 2 to extend the Not to Exceed Amount of the Agreement by $1,500,000 for a total Not to Exceed Amount of $3,260,000 to further support building electrification and the Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-

Docusign Docusign Envelope ID: Envelope ID:85B9FFE7 C2C2ACBB-EC1A -B798-4EB2 -4E7F-A747 -9169-A4F9DFD05859 -213FE208CD8E Amendment No. 3 To Agreement Between Energy Solutions and 3CE 3 Electrify Your Home Program throughout Fiscal Year 2023-24.

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

1. Amend Section 2.1 to read asfollows:
3CE shall pay the CONTRACTOR in accordance with the payment provisionsset forth in Exhibit B-1, subject to the limitations set forth in this Agreement. The total amount payable by 3CE to CONTRACTOR under this Agreement shall not exceed the sum of $3,260,000.00.

2. Amend Table 1: Budget Breakdown in Exhibit B-1 to read as follows:

Expense Type Total
Incentive Reimbursement $2,963,636
Administration Costs $296,634
Fixed Price Start-Up Fee $50,000
Program Implementation Fee $246,364
Total Costs $3,260,000

3. The terms and conditions in this Amendment No. 3 shall control over any inconsistent terms and conditionsin the original Agreement and Amendment No. 2.

4. A copy of this Amendment No. 3 shall be attached to the Original Agreement.

5. This Amendment No. 3 shall be effective when signed by both parties. [Signatures are on following page]
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

DocuSign Envelope ID: F76999DD-B0E3-40C9-850B-

Docusign Docusign Envelope ID: Envelope ID:85B9FFE7 C2C2ACBB-EC1A -B798-4EB2 -4E7F-A747 -9169-A4F9DFD05859 -213FE208CD8E IN WITNESS WHEREOF, the parties hereto have set their handsthe day and year first above written.

Energy Solutions Central Coast Community Energy
BY: BY:

Title:_Chief Operating Officer Robert M. Shaw, CEO
Date: 10/25/2023 |_2:40 PM PDT Date: 11/8/2023
Approved asto Form
BY:

Charles McKee, General Counsel
Date: 10/26/2023
Approved as to Financial Terms
BY:

Dewayne Woods, Chief Financial Officer
Date: 10/30/2023
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

DocuSign Envelope ID: D2DC84CA Docusign Docusign Envelope ID: Envelope ID:85B9FFE7 C2C2ACBB-EC1A --B798 DDED-4EB2 -4E7F -44EC-A747 -9169 -B04E -A4F9DFD05859 -213FE208CD8E - 3/9/2022 5 Contract Number:

Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

DocuSign Envelope ID: 8EE70542-67A7-4684-A8D2-

Docusign Docusign Envelope ID: Envelope ID:85B9FFE7 C2C2ACBB-EC1A -B798-4EB2 -4E7F-A747 -9169-A4F9DFD05859 -213FE208CD8E 8/1/2022 6 Contract Number: EP-2022-013
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

DocuSign Envelope ID: 5FDA430E Docusign Docusign Envelope ID: Envelope ID:85B9FFE7 C2C2ACBB-EC1A --4DEC B798-4EB2 --4E7F 4E66-A747 --9169 9B7E-A4F9DFD05859 -213FE208CD8E - EP-2023-019
AMENDMENT NO. 2

TO SERVICES AGREEMENT BETWEEN ENERGY SOLUTIONS AND

CENTRAL COAST COMMUNITY ENERGY
This Amendment No.2 to the Services Agreement (“Agreement”) which was effective on March 11, 2022, is entered into by and between CENTRAL COAST COMMUNITY ENERGY (“3CE”) and Cohen Ventures, Inc. DBA Energy Solutions (hereinafter “CONTRACTOR”); (CCCE and CONTRACTOR are referred herein as “party,” or collectively, as the “Parties”), with respect to the following:

RECITALS
WHEREAS, 3CE and CONTRACTOR entered into an Agreement on March 11, 2022, to provide services for the implementation of a residential electrification program (“Program”); and
WHEREAS, 3CE sought to support and enhance the TECH Clean California Initiative, a statewide program to accelerate electrification, by combining CCCE incentive funds with state incentive funds; and
WHEREAS, 3CE and CONTRACTOR executed Amendment No. 1 to the Agreement on August 15, 2022; and
WHEREAS, without changing the Not to Exceed amount of the Agreement, 3CE and CONTRACTOR seek to extend the term of the Agreement to September 30, 2024; and WHEREAS, 3CE seeks to furthersupport victims of declared natural disasters by providing enhanced incentives through the Electrify Your Home Program; and WHEREAS, 3CE seeks to leverage State funding available through the Self Generation Incentive Program to furthersupport customers who choose to participate in Demand Response programs.

AGREEMENT
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

1. Amend the first sentence of Section 3.1 to read as follows:

The term of this Agreement is from the date of execution until September 30th, 2024, unless sooner terminated pursuant to the terms of this Agreement.

2. Replace Exhibit A-1 with Exhibit A-2, attached and incorporated herein.

3. Except as provided herein, all remaining terms, conditions and provisions of the Amendment No. 2 To Agreement Between Energy Solutions and 3CE 1 Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

DocuSign Envelope ID: 5FDA430E Docusign Docusign Envelope ID: Envelope ID:85B9FFE7 C2C2ACBB-EC1A --4DEC B798-4EB2 --4E7F 4E66-A747 --9169 9B7E-A4F9DFD05859 -213FE208CD8E - EP-2023-019
Agreement Amendment No. 1 are unchanged and unaffected by this Amendment No. 2 and shall continue in full force and effect.

4. The terms and conditions in this Amendment No. 2 shall control over any inconsistent terms and conditions in the original Agreement and Amendment No. 1.

5. A copy of this Amendment No. 2 shall be attached to the Original Agreement.

6. This Amendment No. 2 shall be effective when signed by both parties.

IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first above written.

Cohen Ventures, Inc. DBA Energy Solutions
BY:

Samuel Cohen, President
Central Coast Community Energy
BY:

Robert M. Shaw, Chief Executive Officer
Date: 8/17/2023 Date: 8/24/2023
Approved as to Form
BY:

Charles McKee, General Counsel
8/24/2023
Date:

Approved asto Financial Terms
BY:

Dewayne Woods, Chief Financial Officer
Date: 8/24/2023
Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

DocuSign Envelope ID: 5FDA430E Docusign Docusign Envelope ID: Envelope ID:85B9FFE7 C2C2ACBB-EC1A --4DEC B798-4EB2 --4E7F 4E66-A747 --9169 9B7E-A4F9DFD05859 -213FE208CD8E - EP-2023-019
Amendment No. 2 To Agreement Between Energy Solutions and 3CE 2 Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56

DocuSign Envelope ID: 5FDA430E Docusign Docusign Envelope ID: Envelope ID:85B9FFE7 C2C2ACBB-EC1A --4DEC B798-4EB2 --4E7F 4E66-A747 --9169 9B7E-A4F9DFD05859 -213FE208CD8E - 8/14/2023 3 Contract Number: EP-2023-019_
Exhibit A-2: Scope of Services
Task 1 - Program Administration
CONTRACTOR will collaborate with CCCE to develop, implement, and manage the CCCE Electrify Your Home Program (“The Program”) with activities including, but not limited to processing applications, paying incentives, reporting, and representing CCCE’s interests with third parties and participating contractors. CONTRACTOR will host monthly callsto review the status of goals, participant performance, and discuss potential issues and recommendations for improvement.

Activities:
• Meetings hosted once per month
Task 2 - Data Reports
Task 2a – Monthly Data Report
CONTRACTOR will provide reports to CCCE in a manner that enables confident decision-making and alleviates audit risk. To enable real-time reporting, CONTRACTOR’S software platform, Iris, is designed to provide secure integrated data collection, and reports may be downloaded from Iris at any time. The fields included in these reports are flexible and will be configured to suit CCCE’s preferences.

CONTRACTOR will prepare a monthly report with a summary of current participation and performance indicators that are determined by CONTRACTOR and approved by CCCE. These reports will be accessible either through the online application system, delivered via a secure file sharing website, or delivered based on agreed upon terms between CCCE and CONTRACTOR.

Deliverables:
• Monthly Report delivered once per month
Task 2b - Full Data Reports
All sales data collected from participants in claims, as well as all data documenting completed validation checks, eligible equipment specifications, and payments to participants, will be saved in Iris and will be available for use in all automated and manual QA/QC processes. CONTRACTOR will report on this data Program-to-date, which will include application-level fields such as equipment, installation, customer, and savings data.

Deliverables:
• Raw data provided ad hoc.

Task 3 - Contractor Outreach
CONTRACTOR will leverage trade ally outreach efforts to build and maintain a network of contractors, distributors, and manufacturers to support the Program and ensure contractors in CCCE territory are aware of the higher incentives sponsored by CCCE. CONTRACTOR will work with contractors to create Docusign Envelope ID: 557E04B1-2E08-4417-ADD2-18E88F886B56