Central Coast Community Energy (3CE) Operations Board
May 14, 2025

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 Q2 FY 2024-25

2. 3CE Energy Programs Portfolio Analysis Update

diesel buses off the
road with support
of E-bus program
5 Energy Programs Updades
2025 Q2
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 1,189 MT CO2e avoided as of MARCH 2025
Plan Your Fleet Charge & Electrify Your Fleet
Reach Codes
*calculated using EPA and CARB reference data
gas cars off the
road with support
of Electrify Your
Ride
• City of Atascadero
• City of Capitola
• City of Carmel
• City of Guadalupe
• City of Monterey
• City of Salinas
• City of San Luis Obispo
• City of Soledad
• County of Santa Barbara
City of Goleta - New Construction (complete)
City of San Luis Obispo - Existing Buildings Multifamily (underway) City of Santa Cruz - Existing Buildings (underway)
City of Santa Maria.............................2 EVs
City of San Luis Obispo.....................8 L2s
County of Santa Barbara .................. 60 L2s
ag equipment
transitioned to electric
alternatives with
support of Agricltural 270 Electrification Program
9 School District in San Juan Bautista
$75,168
E-bus Program
Single Family Disaster Rebuild
in Santa Cruz
$15,000
New Construction Elec. Program
14kW battery in Paso Robles
$4,200
Residential Battery Rebate Program
247 196

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 April 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 $3,171,000 in rebates across five counties, supporting over $25 million in EV and EV charger purchases. The EV purchases have resulted in over 2,349 MT CO2e avoided, which is equivalent to removing 548 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 $580,978 in rebates for four electric school buses and one electric shuttle van in four counties. These rebates have helped enable over $2.1M 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 2 School Districts $243,254 2 0%
Total: 5 School Districts $580,978 5 50%
Table 1 (above): Electric Bus Program projects awarded funding 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 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.

Workplace charging at 3CE’s San Luis Obispo Office
On December 11, 2024, the Policy Board approved the launch of an EV Charger Asset Pilot at 3CE’s office located at 1026 Palm Street in San Luis Obispo. The project includes three Level 2 charging stations serving five parking spaces. These workplace chargers will allow 3CE to evaluate employee charging behaviors and explore potential synergies with innovative energy management strategies, such as vehicle-to-load (V2L) functionality.

As part of the project, staff secured a grant from the San Luis Obispo Air Pollution Control District (SLO APCD) to cover approximately 60% of the equipment purchase and installation costs. Phase one, which included ADA upgrades, and installation of pedestal and EV chargers, was successfully completed and highlighted during 3CE’s open house event on March 19, 2025. Final construction, including full commissioning and operational readiness, is scheduled for completion in Q3 2025.

Picture 1 (above): Phase 1 completion of EV Chargers at 3CE’s San Luis Obispo Office Future Pilot Sites
3CE staff is exploring additional pilot projects for workplace charging at 3CE’s newly acquired Soquel office, public charging in Santa Maria, and public charging in City of Monterey. These sites, if selected, will support 3CE’s strategy to make EV charging more accessible along the Central Coast through agency-managed EV charging solutions.

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.

On April 9th, the Operation Board authorized Amendment No. 6 to 3CE’s agreement with Cohen Ventures, DBA Energy Solutions. The Amendment revised the scope of work allowing the total agreement not to exceed amount to be reduced by $735,000 as a result of bringing incentive check processing in house. The execution of Amendment No. 6 will provide both program stability and budgetary flexibility through the end of the fiscal year.

In FY 2024-25, the EYH program has so far distributed $1,318,630 in rebates to support the installation of 104 Heat Pump HVAC units and 297 Heat Pump Water Heater Units. 3CE County Heat Pump HVAC Units Installed Heat Pump Water Heater Units Installed MONTEREY 32 24
SAN LUIS OBISPO 2 9
SANTA BARBARA 2 257
SANTA CRUZ 68 7
Table 4 (above): Electrify Your Home installations by county in FY 2024-25.

3CE staff are collaborating with the Community Advisory Council to gather feedback on the current Electrify Your Home Program and potential improvements for the program’s design. As part of this initiative, the final round of community workshops took place on April 10th and 17th and focused on education, marking, and outreach strategies for the next iteration of Electrify Your Home. Community feedback from the events will inform future program improvements for the Electrify Your Home.

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 $634,500 across four counties to support construction of 220 all-electric 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 9 - 35
SANTA BARBARA - - 5 - 5
SANTA CRUZ - 172 3 3 178
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.

On April 9
th, 2025, the Operations Board approved an amendment to 3CE’s contract with TRC Engineers, 3CE’s technical support vendor for Reach Codes. The amendment increased the not-to-exceed amount

listed in the contract by $385,000 and extended the term of the agreement by two years to allow for continued and uninterrupted services to support the Reach Codes program. Additionally, the amendment added additional services for code updates and outreach to engage new member agencies with the 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 Program 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 lower relative cost and GHG avoidance potential projects; “Tier 1”, and up to $75,000 for larger relative cost and GHG avoidance potential projects; “Tier 2”. 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 $461,062 in rebates to support twelve equipment purchases.

These rebates have helped enable over $1M in all-electric agricultural equipment. 100% of incentives distributed so far in FY 2024-25 have been to small businesses who are 3CE customers.

County Equipment Incentivized Total Incentives % Incentives to Small Businesses Monterey 2 Standard tractors
1 Irrigation pump $108,608 100%
San Benito 1 Standard tractor
1 Forklift $58,095 100%
San Luis Obispo - - -
Santa Barbara 2 Standard tractors
1 Excavator $157,908 100%
Santa Cruz
2 Standard tractors
1 Compact tractor
1 Excavator
$136,451 100%
Total: 12 All-electric equipment $461,062 100%
Table 7 (above): Agricultural Electrification projects awarded 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 the Solar Billing Plan (SBP), also known as the 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. 38 customers have signed up to receive assistance and have met program requirements. Staff are conducting direct outreach to rebate applicants to ensure they meet the program’s discharge requirements.

In FY 2024-25, 3CE has received 259 applications for the program. Since launch of the program in the fourth quarter of FY 2023-24, 3CE has distributed $506,500 in rebates to customers, with approximately 743 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 (HFP) Pilots.

The pilots offer 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 will be credited to the customer via a check from 3CE.

The Hourly Flex Pricing Expanded Pilot 1 is for agricultural customers and offers the option to receive a one-time rebate for purchasing automation technology and software that responds to price signals, such as a controller for an irrigation pump. The HFP Expanded Pilot 2 is for commercial and residential customers. All customer classes have access to Automation Service Providers (ASPs) to help manage load shifting and optimize cost savings.

To date, 3CE has 20 customers enrolled in HFP. Total enrolled load from these customers is nearly 8GWh; approximately 50% of 3CE’s internal load enrollment goals for the pilot.

Pilot Customers Enrolled Total Enrolled Load
HFP Expanded Pilot 1 (Agricultural) 3 4.03 GWh
HFP Expanded Pilot 2 (Commercial) 12 3.86 GWh
HFP Expanded Pilot 2 (Residential) 4 51.3 kWh
TOTAL 20 7.89 GWh
Table 8 (above): 3CE customers enrolled in Hourly Flex Pricing 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 5
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Jerri Strickland, Director of Regulatory Affairs & Compliance Kalia Mitchell-Silbaugh, Policy Advisor
Robert Wool, Policy Advisor
SUBJECT: Regulatory Update
DATE: May 14, 2025
RECOMMENDATION:

Regulatory Update to the Operations Board of Directors.

DISCUSSION/ANALYSIS:

Please find attached 3CE’s Regulatory Update, providing the latest information on the following:
 Resource Adequacy (RA)
 Distribution Planning
 New Power Charge Indifference Adjustment (PCIA) Rulemaking  Integrated Resource Planning (IRP)
 Renewables Portfolio Standard
 Diablo Canyon Power Plant Extension
 Demand and Distributed Energy Market Integration
 Integrated Energy Policy Report Update 2024
 PG&E Rule 30 Application for Transmission Service
 Energy Resources Recovery Account (ERRA) Compliance
 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

Operations Board Update
May 14, 2025

Table of Contents
REGULATORY UPDATE......................................................................................................................................................... 3 Resource Adequacy (RA) - R.23-10-011........................................................................................ 3 Distribution Planning – R.21-06-017.............................................................................................. 3 New Power Charge Indifference Adjustment (PCIA) Rulemaking – R.25-02-005 ....................... 4 Integrated Resource Planning (IRP) - R.20-05-003....................................................................... 5 Renewables Portfolio Standard - R.24-01-017 ............................................................................... 5 Diablo Canyon Power Plant Extension – R.23-01-007 .................................................................. 6 Demand and Distributed Energy Market Integration - Initiative.................................................... 7 Integrated Energy Policy Report Update 2024 – 24-IEPR-01...................................................... 7 PG&E Rule 30 Application for Transmission Service– A.24-11-007............................................ 8 Energy Resources Recovery Account (ERRA) Compliance .......................................................... 8 Energy Resources Recovery Account (ERRA) Forecast – A.24-05-009; A.24-05-007................. 9 General Rate Cases — A.24-09-014; A.24-03-019 ........................................................................ 9

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
On March 17, 3CE filed joint reply comments with San Jose Clean Energy on Track 3 proposals, focusing on party proposals related to the Planning Reserve Margin (PRM) for 2026 and refinements to the new 24-hour compliance paradigm called the Slice-of-Day (SOD) framework. 3CE’s comments recommend that the CPUC maintain the current 17% PRM, which is a buffer applied on top of RA procurement requirements to account for differences between actual and forecasted demand, as it represents the most prudent and affordable option under consideration. 3CE recommends the CPUC investigate errors in its PRM study methodology that may be unnecessarily inflating the PRM before adopting further increases to procurement requirements. 3CE’s comments also support modifications to the SOD framework that would facilitate compliance and decrease ratepayer costs without threatening reliability, including CalCCA’s proposal for hourly load obligation trading, and proposals that would enhance the availability of RA supply. Separately, on April 3, the California Independent System Operator (CAISO) issued its draft Local Capacity Technical Report, which will inform local RA requirements for 2026-2028. PG&E and SCE procure local RA, the capacity needed to ensure reliability in specific transmission constrained areas, and allocate portions of their procurement and the associated costs to LSEs in their service territory.

Next Steps
The CAISO will issue a final 2026 LCR Report on May 1. Draft results demonstrate an overall increase in local RA needs by about 1%. The CPUC will issue a Proposed Decision in May on Track 3 issues, including adoption of 2026-2028 local capacity requirements, a 2026 PRM, and refinements to the SOD Framework, with final adoption set for June.

Distribution Planning – R.21-06-017
Issue
In anticipation of extensive increases in Distributed Energy Resources (DER) due to California’s transportation electrification (TE) and climate goals, the CPUC initiated a Rulemaking to determine how to optimize DER integration within the distribution grid. This Rulemaking seeks to improve the transparency, accuracy, and efficacy of IOU distribution planning processes to better accommodate DER growth and mitigate the need for costly grid upgrades.

Status

Pursuant to a Decision adopted last fall, the IOUs must adopt several improvements to their distribution planning processes (DPP) for the 2025-2026 planning cycle. These improvements include increased community engagement, planning for several different scenarios of customer behavior, and incorporating a new load growth category for “pending loads” that are not associated with formal energization requests but otherwise anticipated to materialize. To implement these new requirements, the IOUs held a workshop on March 14 to present their proposals for developing the pending load categories. Separately, PG&E held a workshop on March 13 to address ongoing and planned changes to its DPP, including pending load data and community engagement strategies.

Next Steps
3CE will monitor the proceeding to remain informed of how the IOUs will engage with customers to facilitate proactive planning and timely customer energization. The IOUs will submit community engagement plans for their DPPs on May 1 and proposals for incorporating pending loads into their distribution planning process on June 30. The IOUs are also currently conducting an Electrification Impact Study to assess potential impacts of meeting electrification needs under multiple scenarios and will release a report in September to inform further distribution planning improvements.

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 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. Track 1 will consider potential modifications to the MPB calculations on an expedited timeline, targeting a June 2025 decision for incorporation in 2026 ERRA forecasts.

Status
On April 8, the CPUC issued a Scoping Memo for Track 1 limited to issues related to the calculation of the RA MPB. Modifications under consideration include changes to the transaction data used to calculate MPBs and consolidation of RA attributes within a single MPB rather than three distinct calculations for local, flexible, and system RA. These modifications seek to increase volumes used for the RA MPB, as data suggests reduced volumes resulted in the significantly increased 2025 RA MPB. On April 21, CalCCA filed an opening brief arguing that any modification to the RA MPB must only be applied prospectively to the 2026 RA Forecast MPB to avoid retroactive rulemaking. CalCCA argues the CPUC should first consolidate RA attributes within a single MPB and defer any additional change to Track 2 after full evaluation of the PCIA methodology. However, if the CPUC remains concerned about transaction volumes after consolidating the RA MPB, CalCCA suggests a narrow increase to the timeframe on RA transactions of no more than 3 years.

Next Steps
3CE will continue to inform CalCCA’s advocacy within the proceeding and will assist in drafting CalCCA’s Track 1 Reply Brief, due April 30. The CPUC anticipates issuing a Track 1 proposed decision in May for

adoption in June. Track 2 will consider broader and long-term improvements to ERRA and PCIA processes, IOU rate forecasts, and mitigation of rate volatility.

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 mid-term reliability (MTR) procurement mandates, which apply to 3CE and other CCAs. Last year, the CPUC issued an Amended Scoping Memo stating its intent to address additional issues in the IRP proceeding, including development of a long term procurement framework entitled the Reliable and Clean Power Procurement Program (RCPPP) that would replace the CPUC’s current ad hoc mandate structure.

Status
On March 21, Southern California Edison (SCE) filed a Petition for Modification (PFM) of CPUC’s decisions ordering MTR procurement. Currently, LSEs with delayed MTR contracts can procure short-term contracts to act as a “bridge” until the contracted resource comes online. SCE’s PFM seeks to permit compliance flexibility and reduce ratepayer costs by removing bridge requirements during non-summer months for LSEs that have met their RA requirements, arguing that additional resources are not needed for reliability during these lower-demand months.

Next Steps
3CE worked with CalCCA to develop supportive comments in response to SCE’s PFM, due April 21.

Internally, 3CE is initiating work on its next IRP filing, due to the CPUC on November 1, 2025.

Renewables Portfolio Standard - R.24-01-017
Issue
The CPUC’s Renewables Portfolio Standard (RPS) proceeding monitors compliance by retail sellers, including CCAs, within California’s RPS program which requires that 60% of all electricity retail sales be served by renewable resources by 2030 and at least 65% of the procurement a retail seller counts toward the RPS requirements be from long-term contracts. The CPUC initiated a new rulemaking to continue implementation of the RPS program, including reviewing RPS procurement plans, providing tools for RPS analysis and reporting, assessing RPS compliance, and integrating new legislative mandates into the RPS program.

Status
On January 23, 3CE submitted its final 2024 RPS Plan to the CPUC with minor revisions to its reported over procurement values, which represent 3CE’s exceedance of annual RPS requirements. The final RPS Plan shows that 3CE will exceed the state’s 2030 RPS target of 60% RPS eligible procurement requirements by 2025, 5 years ahead of the requirement. On April 3, the CPUC issued an approval of 3CE’s final 2024 RPS plan. The CPUC also issued a Ruling on April 17 identifying the filing requirements and schedule for 2025 RPS plans.

Next Steps

3CE will continue to track the RPS proceeding to remain updated on program requirements and monitor for a potential Amended Scoping Memo that would indicate whether the CPUC will consider extending the BioMAT program end date, currently set for December 2025. 3CE’s next RPS Procurement Plan is due June 30.

Demand Flexibility – R.22-07-005
Issue
Launched in 2022, this CPUC proceeding aims to enhance demand flexibility and grid reliability in California, mitigating costs from grid stress. To promote participation in demand flexibility by both bundled and unbundled customers, the CPUC issued a Decision in 2024 to expand two dynamic rate pilot programs to CCAs. As part of 3CE’s load management standards (LMS) plan and to gain experience with dynamic rates, 3CE elected to participate PG&E’s expanded pilots to offer hourly flex pricing to agricultural, commercial, or residential customers. On January 31, 2025, 3CE finalized a service agreement with PG&E, enabling 3CE to enroll customers in the Expanded Ag pilot.

Status
On April 2, PG&E filed an advice letter notifying the Commission that it has surpassed 50 MW of enrollment in its Expanded Ag Pilot and stating that it has paused pilot enrollment to evaluate changes to support additional participants, without providing any additional information on the timeline or process for recommencing enrollment. This pause comes as a surprise and frustration, as CCAs were delayed in enrolling customers in the pilot by PG&E’s request for a service agreement. PG&E also does not have explicit authority to pause pilot enrollment on behalf of bundled and unbundled customers.

Accordingly, 3CE initiated a Joint CCA effort to protest PG&E’s advice letter and advocate on behalf of CCA customers interested in participating in the expanded Ag Pilot.

Next Steps
The Joint CCAs, led by 3CE, will submit a protest to PG&E’s advice letter on April 22. The protest will argue that PG&E’s pilot administration has hindered CCA participation and request that PG&E submit additional details on the duration and process for recommencing program enrollment.

Diablo Canyon Power Plant Extension – R.23-01-007
Issue
SB 846 required the CPUC to consider the potential expansion of operations at the Diablo Canyon Power Plant (DCPP) for an additional five years beyond its retirement dates to improve system reliability while additional renewable energy and zero-carbon resources come online. DCPP is owned and operated by PG&E and was licensed by the Nuclear Regulatory Commission (NRC) to operate until November 2, 2024 (Unit 1) and August 26, 2025 (Unit 2). In 2023, the CPUC opened a new proceeding related to the potential extension of DCPP. Phase 1 of the proceeding concluded with a Decision that authorized extended operations of DCPP and allocated the costs and benefits to LSEs.

Status
On February 28, the CPUC issued a PD on party proposals in Phase 2, requiring PG&E to estimate and report how many customers participate in or benefit from each Volumetric Performance Fee (VPF) project in its annual filing. VPFs fund projects supporting state energy goals, like reducing GHG emissions, and should benefit as many customers as possible. CalCCA previously urged the Commission

to clarify that VPF revenues should only cover costs otherwise paid by PG&E’s electric customers and ensure proposals are thoroughly reviewed. PG&E later asked the Commission to remove the PD’s ongoing third-party audit, calling it unnecessary and not required by statute. In March 25 comments, CalCCA advocated against PG&E’s objections, backed the audit, and supported requiring PG&E to estimate customer benefits and address affordability. CalCCA also said VPF funds should prioritize electric distribution projects and not support PG&E’s generation assets. The Utility Reform Network filed comments recommended using VPFs for new energization and wildfire mitigation projects.

Next Steps
The parties await the Final Decision from the Commission and anticipate that PG&E will file a Tier 2 advice letter to implement changes to the Diablo Canyon Independent Safety Committee charter within 90 days of the Final Decision’s issuance.

Demand and Distributed Energy Market Integration - Initiative Issue
In January, CAISO launched its new Demand and Distributed Energy Market Integration initiative to explore enhancements to or development of participation models and market rules for distributed energy resources (DERs) to participate in the CAISO market. 3CE has been supportive of CAISO taking on this initiative to address barriers and inefficiencies that hinder the ability for DERs to provide resource adequacy.

Status
The CAISO held a meeting on April 7 to review current demand response (DR) market participation models, identify issues with current methods for estimating DR resource performance to a market dispatch, and discuss stakeholder ideas for enhancements or alternatives to the current Performance Methodology processes.

Next Steps
3CE will continue to monitor the proceeding through CalCCA’s engagement and advocate for solutions that enable more DER resources to participate in the wholesale market. Comments on the most recent meeting are due on May 1.

Integrated Energy Policy Report Update 2024 – 24-IEPR-01 Issue
The Integrated Energy Policy Report (IEPR) is the California Energy Commission’s biannual report, with an update every other year, to forecast energy demand, provide an assessment of California’s energy system, identify major trends and issues, and provide policy recommendations to advance state goals.

The IEPR forecast is a key input in the electric system planning conducted by the CPUC, CAISO, and IOUs.

Status
On April 14, the CEC issued an Order Instituting Informational Proceeding, directing the Executive Director to gather and assess the information needed and initiate a forum to discuss and develop this year’s report. The 2025 IEPR will address three major topics: Advancing Clean Energy deployment, the Electricity and Gas forecast, and a Load-Shift Goal update. The development of the IEPR forecast is a public process where the CEC solicits information, conducts workshops and hearings, and creates a docket for comment.

Next Steps

3CE will participate in upcoming workshops to help craft, develop, and implement the state’s energy plans. The next workshop on May 7 will design and develop the forms for LSEs complete so the CEC can assess resources and analyze progress towards energy efficiency and renewable energy goals. The data will also be used to develop CEC forecasts, which are used in the CPUC procurement and RA proceedings, as well as in transmission planning studies conducted by the CAISO. This information will also provide the CEC with a better understanding of LSE planning assumptions and supply resource commitments, allowing the CEC to assess current conditions in electric generation reliability.

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 does not negatively impact competition.

Status
On January 24, PG&E filed a motion urging the CPUC to expeditiously approve interim implementation of Rule 30. The Joint CCAs, led by 3CE, encouraged the Commission to deny this motion as PG&E has not provided sufficient evidence to justify interim implementation. On March 18, the CPUC issued a Ruling seeking additional information from PG&E to assess the reasonableness of interim implementation. After reviewing PG&E’s answers, the Joint CCAs submitted a response to highlight the need for PG&E to share information related to planned load growth with CCAs.

Next Steps
The next step within the proceeding is for intervenors to submit testimony, due to the Commission by June 30. 3CE will continue to engage with the Joint CCAs and PG&E to advocate for transparency and information-sharing on planned load growth so that CCAs can make informed procurement decisions.

Energy Resources Recovery Account (ERRA) Compliance–A.25-02-013; A.25-04-001 Issue
Energy Resource Recovery Account (ERRA) compliance filings are made annually by the Investor Owned Utilities (IOUs) for the approval of costs associated with Utility Owned Generation (UOG) operations and fuel procurement, Portfolio Allocation Balancing Account (PABA) entries, economic dispatch of electric resources, and contract administration. IOUs are required to demonstrate compliance with CPUC decisions and the California Public Utilities Code. All CCAs participate jointly in these proceedings through CalCCA to ensure unbundled customers are treated equitably in IOU rate-setting decisions.

PG&E Status
CalCCA participated in the PG&E 2024 ERRA Compliance Prehearing Conference on April 18, where scope and schedule for the proceeding were discussed. As in previous ERRA Compliance cases, CalCCA continues to advocate for review of issues related to PG&E’s RA sales practices. To avoid scoping

disputes CalCCA proposed in its protest to amend the scope to explicitly include details around how and when PG&E used its commercial practices (from its bundled procurement plan) to sell excess RA. PG&E still disagrees and argued the current scope is adequate.

SCE Status
SCE filed its 2024 ERRA Compliance Application on April 1, 2025. The CCAs will convene to review potential issues on May 5.

Next Steps
For PG&E’s 2024 ERRA Compliance case, parties now await a Scoping Ruling from the assigned commissioner. For SCE’s 2024 ERRA Compliance case, protests are due May 12.

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.

Status
A Proposed Decision (PD) is expected in the Consolidated Track 2 2024 ERRA Forecast case in April 2025.

The PD will determine whether changes should be made related to IOU fixed generation costs, which are generation costs that do not vary with consumption. CalCCA and parties generally agree no changes are necessary currently, nor are further reporting requirements around fixed generation costs needed.

Next Steps
Both PG&E and SCE will file their next ERRA Forecast Application 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 for authority 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
CalCCA filed a response in support of Cal Advocates’ Motion to Amend the Scoping Memo to include rate structure issues excluded from the scope of PG&E’s Rule 30 Application (A.24-11-007) on April 17, 2025. CalCCA agrees with Cal Advocates that large-load transmission tariff rate structures make sense to consider in PG&E’s current GRC Phase 2, where other cost allocation and rate design considerations are being discussed. Since the scope of PG&E’s Rule 30 Application explicitly excluded rate structures, the best place to address large-load transmission tariff rate structures now is the ongoing Phase 2 GRC.

Otherwise, consideration of those rate structures would need to be put off until the next Phase 2 GRC, which is years away at minimum.

SCE Status
The CPUC extended the statutory deadline of SCE’s Phase 1 GRC from May 12, 2025, to October 12, 2025, to provide more time for developing a Proposed Decision.

Next Steps
Parties are awaiting a PD in SCE’s Phase I GRC, which has no CCA contested issues and a response from the CPUC to Cal Advocates’ motion in PG&E’s Phase II Application.

Staff Report Item 6
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 February 28, 2025 DATE: May 14, 2025
RECOMMENDATION:

Receive a financial report for the period October 1, 2024, through February 28, 2025.

SUMMARY:

Over the five months ending February 28, 2025, operating revenues amounted to $247.8 million, and operating expenses totaled $187.8 million for a net operating income of $60.0 million. Non-operating revenue of $4.6 million, driven by interest and investment returns, netted the month with a net position increase of $64.6 million.

Year-to-date operating revenue is $25.0 million below budget, primarily due to a lower-than-expected retail load that is partially offset by settlement fund receipts. 3CE is actively monitoring retail load projections and has adjusted the forecast downward in March 2025 as part of the electric generation rate adjustments approved by the Policy Board effective April 1, 2025. Non-operating revenue from investment returns from assets held in operating, investment accounts, and interest on collateral exceeded the budget with a favorable variance of $1.7 million, resulting from a favorable short-term interest rate. Year-to-date total revenue is $23.3 million lower than budget, an unfavorable variance of 8%.

Year-to-date operating expenditures, excluding capital outlay, are $56.8 million below budget, a variance of 23%. The primary driver of this favorable variance is lower-than-expected energy costs.

Energy expenses came in $49.4 million under budget, largely due to a combination of lower market prices for energy and renewable energy attributes required for Renewable Portfolio Standard (RPS) compliance, stronger-than-anticipated congestion revenue rights income, and delays in invoicing for

Renewable Energy Certificate (REC) products. Non-energy operating costs were $7.4 million lower than budget due to less-than-planned costs for contracted services, energy programs, and staff vacancies.

The capital outlay was below budget by $4.5 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 following accounting principles. Year-to-date total expenditures, including capital outlay, are $61.3 million lower than the budget, a variance of 24%. These variances will decrease 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 February 28, 2025, totaled $282.8 million, a $64.6 million increase from the start of the fiscal year. The increase is primarily due to growth in accounts receivable, deposits held by counterparties to meet collateral obligations, and capital assets, offset by lower accrued cost of electricity and other accrued liabilities. Cash, cash equivalents, and investments totaled $226.4 million, a $0.4 million decrease from the start of the fiscal year. The minor decrease in liquidity was driven by increased collateral postings required by energy counterparties from exposure in certain energy transactions.

FISCAL IMPACT:

There is no financial impact associated with receiving this report.

ATTACHMENT(S):

1. February 28, 2025 Financial Report

Compiled Financial Statements
Compiled Budgetary Comparison Schedule
Budget Variance Commentary
Investment Summary
Accounts Receivable Aging Summary
Table of Contents

FINANCIAL REPORT
Fiscal Year to Date
as of February 28, 2025

ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Central Coast Community Energy
Management is responsible for the accompanying financial statements of Central Coast Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of February 28, 2025, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the five months then ended in accordance with accounting principles generally accepted in the United States of America. 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 statements 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, conclusion, nor provide any assurance on these financial statements.

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
San Rafael, CA
April 4, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com

Current assets
Cash and cash equivalents $ 145,845,377
Accounts receivable, net of allowance 49,746,808
Accrued revenue 32,480,597
Other receivables 2,061,465
Investments 73,024,910
Prepaid expenses 1,616,302
Deposits 44,234,323
Loan receivable 192,501
Total current assets 349,202,283
Noncurrent assets
Investments 7,511,112
Deposits 23,182
Loan receivable 1,233,381
Capital assets, net of depreciation and amortization 6,293,104 Total noncurrent assets 15,060,779
Total assets 364,263,062
Current liabilities
Accrued cost of electricity 51,005,977
Accounts payable 1,354,815
Other accrued liabilities 1,671,542
User taxes and energy surcharges due to other governments 1,863,594 Security deposits - energy suppliers 15,489,299
Lease liability 336,030
Total current liabilities 71,721,257
Noncurrent liabilities
Security deposits - energy suppliers 9,050,025
Lease liability 698,760
Total noncurrent liabilities 9,748,785
Total liabilities 81,470,042
Net investment in capital assets 5,134,284
Unrestricted 277,658,736
Total net position $ 282,793,020

NET POSITION
As of February 28, 2025

STATEMENT OF NET POSITION

CENTRAL COAST COMMUNITY ENERGY
ASSETS

LIABILITIES

OPERATING REVENUES
Electricity sales, net $ 239,686,009
Liquidated damages 8,101,745
Other income 38,374
Total operating revenues 247,826,128

OPERATING EXPENSES
Cost of electricity 174,191,086
Contract services 5,690,406
Staff compensation 3,782,099
Other operating expenses 809,607
Program incentives 3,063,972
Depreciation and amortization 246,448
Total operating expenses 187,783,618
Operating income (loss) 60,042,510

NONOPERATING REVENUES (EXPENSES)
Investment income 4,605,970
Interest and financing costs (20,903)
Nonoperating revenues (expenses) 4,585,067
CHANGE IN NET POSITION 64,627,577
Net position at beginning of period 218,165,443
Net position at end of period $ 282,793,020
Five Months Ended February 28, 2025

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CENTRAL COAST COMMUNITY ENERGY

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 237,200,678
Receipts of liquidated damages 8,101,745
Other operating receipts 10,620,039
Receipts of deposits and collateral 31,473,164
Payments to suppliers for electricity (206,832,516)
Payments for other goods and services (6,856,839)
Payments for deposits and collateral (49,771,004)
Payments for program incentives (5,630,967)
Payments for staff compensation (3,776,847)
Payments of taxes and energy surcharges to other governments (4,469,203) Net cash provided by operating activities 10,058,250

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments of lease liability (153,064)
Purchases of capital assets (2,576,420)
Net cash provided (used) by capital and related financing activities (2,729,484)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 2,720,142
Proceeds from sales and maturities of investments 64,112,000 Principal payments received of loan receivable 94,915
Purchase of investments (78,950,127)
Net cash provided (used) by investing activities (12,023,070) Net change in cash and cash equivalents (4,694,304)
Cash and cash equivalents at beginning of year 150,539,681 Cash and cash equivalents at end of period $ 145,845,377 Unrealized appreciation (depreciation) and
timing differences in investment income $ 1,885,828

NONCASH CAPITAL FINANCING ACTIVITIES
Capital acquisitions included in accounts payable
and other liabilities $ 124,030
Five Months Ended February 28, 2025

STATEMENT OF CASH FLOWS

CENTRAL COAST COMMUNITY ENERGY

NONCASH INVESTING ACTIVITES

Operating income (loss) $ 60,042,510
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation and amortization expense 246,448
(Increase) decrease in:

Accounts receivable, net of allowance (5,308,913)
Accrued revenue (1,532,067)
Other receivables 4,591,337
Prepaid expenses 212,922
Deposits (32,615,246)
Increase (decrease) in:

Accrued cost of electricity (25,767,269)
Accounts payable (3,632,203)
Other accrued liabilities 847,385
User taxes and energy surcharges due to other governments (113,554) Security deposits - energy suppliers 13,086,900
Net cash provided by operating activities $ 10,058,250

CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
Five Months Ended February 28, 2025

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY OPERATING ACTIVITIES

ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Central Coast Community Energy
Management is responsible for the accompanying special purpose budgetary comparison schedule of Central Coast Community Energy (a California Joint Powers Authority) for the one and five months ended February 28, 2025, 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
San Rafael, CA
April 4, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com

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

REVENUES AND OTHER SOURCES
Electricity sales, net $ 49,843,100 $ 56,363,862 $ (6,520,762) -12% $ 239,686,009 $ 272,813,174 $ (33,127,165) -12% $ 745,962,356 $ 506,276,347 Revenue for damages 3,600,000 - 3,600,000 na 8,101,745 - 8,101,745 n/a - (8,101,745) Interest and investment returns 883,537 583,333 300,204 51% 4,605,970 2,916,665 1,689,305 58% 7,000,000 2,394,030 Other income 5,665 5,700 (35) -1% 38,374 28,500 35% 9,874 68,400 30,026 Total revenues and other sources 54,332,302 56,952,895 (2,620,593) -5% 252,432,098 275,758,339 (23,326,241) -8% 753,030,756 500,598,658

EXPENDITURES AND OTHER USES
Current Expenditures
Cost of energy 37,184,177 43,566,866 6,382,689 15% 175,152,922 224,597,694 49,444,772 22% 665,267,116 490,114,194 Salaries and benefits 695,887 1,048,820 352,933 34% 3,782,099 5,244,100 1,462,001 28% 12,585,842 8,803,743 Services and supplies 2,135,670 2,931,483 795,813 27% 8,755,213 14,657,413 5,902,200 40% 35,177,798 26,422,585 Capital outlay 2,312,289 1,443,167 (869,122) -60% 2,722,520 7,215,833 4,493,313 62% 17,318,000 14,595,480 Total current expenditures 42,328,023 48,990,336 6,662,313 14% 190,412,754 251,715,040 61,302,286 24% 730,348,756 539,936,002 Surplus (deficit) $ 12,004,279 $ 7,962,559 $ 4,041,720 $ 62,019,344 $ 24,043,299 $ 37,976,045 $ 22,682,000 $ (39,337,344) Annual

CENTRAL COAST COMMUNITY ENERGY

BUDGETARY COMPARISON SCHEDULE
One Month and Five Months Ended February 28, 2025
Month
Variance
Favorable
(unfavorable)
Year-To-Date
Variance
Favorable
(unfavorable)

CCA Program surplus/(deficit)
per budgetary comparison schedule: $ 62,019,344
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 132,161 Subtract depreciation expense (246,448)
Add back capital asset acquisitions 2,722,520
Change in Net Position $ 64,627,577

REVENUES, EXPENSES AND CHANGES IN NET POSITION

CENTRAL COAST COMMUNITY ENERGY

BUDGET RECONCILIATION TO STATEMENT OF
Five Months Ended February 28, 2025

Budget Item YTD Variance Comment
Electric Sales Revenue (12.3%) 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 (22.0%) 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 (27.9%) Staffing expenses are under budget due to the timing of new hires.

Professional Services (52.6%) This category includes accounting, IT, technical and other consultants.

Legal Costs (46.9%) This category includes outside legal costs for regulatory and energy procurement needs.

Marketing and customer enrollment (4.4%) Variance is mostly due to the lower than anticipated costs of recent customer enrollments.

Data Management Services (3.2%) These fees non-discretionary and are charged on a per customer basis.

Utility Service Fees (14.2%) These are PG&E and SCE fees charged on a per customer basis.

Other General & Administrative (64.5%) This category includes occupancy costs, industry membership dues, and other general and administrative costs.

Energy and Related Programs (46.3%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items

CENTRAL COAST COMMUNITY ENERGY
October 1, 2024 through February 28, 2025

Return of Investments YTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

CASH AND CASH EQUIVALENTS
River City Bank/ Chase - Money Market and
other Interest Earning Accounts
Funds Invested - Average Balance $ 99,664,821 $ 114,669,913 $ 87,375,820 $ 86,192,993 $ 97,066,887 Gains/Losses/Interest $ 1,763,891 $ 380,768 $ 421,162 324,104.99 317,642.68 320,213.20 Average APY 4.58% 4.41% 4.45% 4.42% 3.96%

INVESTMENTS
Schwab/Fidelity
Funds Invested - Average Balance $ 125,703,797 $ 126,158,519 $ 126,652,212 $ 127,096,361 $ 127,561,770 Gains/Losses/Interest $ 2,255,193 451,482.54 308,267.24 504,316.11 576,572.23 414,554.41 Average APY 4.31% 2.93% 4.78% 5.44% 3.90%

CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2024 through February 28, 2025

Current 0 - 30 Days 31 - 60 Days 61 - 90 Days > 91 Days A/R Balance $ 25,520,539 $ 14,621,093 $ 2,537,573 $ 865,218 $ 6,202,385 $ 49,746,808

CENTRAL COAST COMMUNITY ENERGY
Summary of Accounts Receivable, Net of Bad Debt Allowance As of February 28, 2025

Staff Report Item 7
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: CEO Report
DATE: May 14, 2025

FUTURE LEADERS INTERNSHIP PROGRAM
We are excited to announce that Central Coast Community Energy (3CE) has officially launched another year of our highly successful Future Leaders Internship Program! The internship program aims to promote the Central Coast as a viable place to live and work. Future Leader interns will have the opportunity to work alongside 3CE staff in multiple departments. The initiative enables students to prepare for a career in clean energy and build skills in a professional setting while working on meaningful projects. Examples of projects include building a dynamic regulatory heat map and developing a policy framework for collections. Further, the internship program is crucial for building relationships and fostering a more diverse, innovative, and inclusive workforce. 3CE looks forward to learning from, mentoring, and providing a forum to foster the innovative ideas that college students and recent graduates will bring to the agency.

CALCCA ANNUAL CONFERENCE
Members of 3CE’s Policy Board of Directors, Operations Board, and staff attended the CalCCA Annual Conference April 28 – 30 in Irvine, California. The conference included industry experts and CCA staff in a variety of breakout sessions, and conference workshops dealing with energy market conditions, renewable technologies, regional markets, virtual power plants, and artificial intelligence. 3CE staff led a number of panels that helped demonstrate the innovative and professional approach of CCAs. Notable panels included:
 Mani Gutierrez, Director of Data and Analytics, presented on utilizing data to manage customer risk and optimizing portfolio management. His panel has sparked a dialogue with numerous CCAs about 3CE's success building an Energy Risk Trading platform tailored to our specific needs.

 Inaara Muhammad, Manager of Energy Programs presented a workshop on "implementing equity" which focused on engagement with at risk and underserved communities to gather and then utilize information to improve program options and delivery in those communities.  Mary Federico, Senior Billing Operations and Rates Analyst presented how customer rates could be designed to both encourage electrification and address the State's increasing affordability crisis.

The following Directors joined staff at the conference, participating in various breakout sessions and a local officials roundtable to share strategies and solutions to common issues facing CCAs and local governments.

Policy Board Directors Operations Board Directors
Jose Barajas (City of Salinas) Yvonne Kimball (City of Morro Bay) Kate Daniels (County of Monterey David Rowlands (City of Santa Maria) Jimmy Dutra (City of Watsonville) Scott Wolfe (City of Buellton) Monica Martinez (County of Santa Cruz)
David Silva (County of Buellton)
REGULATORY UPDATE – RELIABLE CLEAN POWER PROCUREMENT PROGRAM On April 29, the California Public Utilities Commission (CPUC) issued its long-awaited staff proposals detailing the Reliable Clean Power Procurement Program (RCPPP) – the purpose of which is to reduce CPUC reliance on ad hoc procurement orders. It details two options for long-term reliability procurement and separate option for GHG emission reduction procurement. As a load serving entity, 3CE will be subject to compliance requirements under the RCPPP, enforced by financial penalties. 3CE is hopeful the RCPPP can create a predictable management planning process for additional reliability resources.

LEGISLATIVE UPDATE
The legislative process continues to develop quickly. 3CE staff is working in coordination with CalCCA to monitor a number of bills.

The 3CE Policy Board Chair, pursuant to the Operating Rules and Procedures, has authorized support positions on the following bills.

Senate Bill 540 by Becker (passed with amendments from Senate Judiciary to the Senate Floor) Pathways, if successful could reduce the price of a largely renewable mix. It has forward momentum, but with amendments that could constrain how many other western areas are willing to participate in a common market with CA.

Senate Bill 283 by Laird (unanimous votes forwarded to Senate Floor) This bill requires battery systems to adhere to the newest NFPA 855 standards, essentially tightening up safety requirements, requires projects going through the CEC approval process to consult with local fire departments, and prohibits construction inside flammable buildings.

CalCCA is asking for amendments that clarify that it doesn’t apply to home/business behind the meter systems.

Senate Bill 254 by Becker (Senate Floor).

This is the attempt by Senate leadership to reduce the growth of electricity prices. As currently written, this bill:
 Creates the Clean Energy Infrastructure Authority to develop transmission and other infrastructure.
 Requires wildfire mitigation to be cost effective
 Prevents IOUs from rate basing a share of the fire risk mitigation expenses and energization expenses ordered by the Commission
 Increases a credit for income qualified customers in peak billing months.  Establishes a Policy-Oriented and Wildfire Electric Reimbursement (POWER) program that will use appropriated funds to reimburse some CPUC programs.  Modifies some reporting requirements for demand-side management programs, which would make it easier for CCAs to run such programs.
 Requires higher burden of proof for increasing costs in excess of inflation  Requires the CEC to prepare a program EIR to analyze the development of classes of facilities, including solar PV, wind, energy storage, and thermal generation so that other agencies considering approval of specific facilities within the class may rely and build on the program EIR.B
 Broadens the scope of projects that fall within the exclusive jurisdiction of the CEC for permitting by reducing the capital investment requirement for discretionary projects from $250 million to $100 million and extends eligibility to come within the CEC’s jurisdiction from mid-2029 to mid-2034.

ATTACHMENT(S):

1. 3CE Contracts under $200k

3CE Contracts under $200,000/FY
Vendor Total Engagement Amount From To Service Scope Remarks 1 Alvarez Technology Group, Inc.
$20,000 4/16/2025 1/31/2027 Agreement for IT-related software and services to provide security, backup, and management tools.
2 Worksite International, Inc. $5,000 4/18/2025 4/30/2026 Ergonomic Evaluations. 3 Action Janitorial Services
$25,000 4/7/2025 9/30/2025 Amendment No. 1 to Stop Janitorial Services at 71 Zaca Lane and Extend Services to the Entire
Building at 1026 Palm.

Staff Report Item 8
TO: 3CE Operations Board
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Christopher Cook, Director of Energy Programs Inaara Muhammad, Manager of Energy Programs
SUBJECT: Presentation on FY 2023-24 Energy Programs Portfolio Evaluation Draft Report DATE: May 14, 2025
RECOMMENDATION:

It is recommended that the Operations Board receive a presentation on the FY 2023-24 Energy Programs Portfolio Evaluation draft report.

BACKGROUND:

On September 14, 2023, the 3CE Policy Board of Directors approved its FY 2023-24 Operating Budget, including nearly $15 million for Energy Programs incentives. As part of 3CE’s commitment to continual improvement, 3CE has evaluated the performance of Energy Programs supported by the FY 2023-24 budget and compiled findings and recommendations for improvement in its annual Energy Programs Portfolio Evaluation report.

On February 5, 2025, staff presented the draft FY 2023-24 Energy Programs Portfolio Evaluation report to the 3CE Community Advisory Council and received feedback for the final report.

DISCUSSION/ANALYSIS:
3CE’s annual Energy Programs evaluation supports the agency in achieving its program goals and helps to identify additional opportunities to promote affordable access to electrification, reduction of greenhouse gas emissions, all for the benefit of 3CE customers.

The FY 2023-24 Energy Programs Portfolio Evaluation assessed all programs through key performance indicators across four criteria – Program Participation, Program Performance, Program Impact, and

Internal Resources. The evaluation framework aligned with 3CE’s broader efforts to implement energy programs that enable an accessible renewable energy transition for all 3CE customers and communities.

Criteria Key Performance Indicators
Program Participation
Where are 3CE’s
incentives being
distributed?
 Average $ funded per application
 % of funding distributed by county
 % of funding distributed by eligible customer type
Program Performance
Is the program being
utilized as predicted by FY
plan?
 $ incentives distributed
 % allocated budget utilized
 Achievement of FY 2023-24 program goals
Program Impact
Is the program making a
positive contribution to
the 3CE community?
 $ in all-electric purchases / support enabled
 % of purchase cost funded
 Greenhouse gas emissions reduced
 % of funding distributed to underserved communities
Internal Resources
Are 3CE resources being
used effectively?
 Conversion rate from vendors providing technical assistance  Average rebate cycle length including customer payout time  Customer Acquisition Costs (for programs with direct marketing) In FY 2023-24, 3CE offered 11 Energy Programs to residential, commercial, agricultural, and member agency customers. The incentives offered through these programs supported 3CE customers in transitioning their homes, workplaces, and transportation from fossil-fuel power to clean-energy solutions.

Fiscal Year
2023-24
Energy
Programs
Transportation Electrification
Electrify Your Ride
E-Bus Program
Plan Your Fleet
Charge Your Fleet
Electrify Your Fleet
Transportation Grants
Building Electrification
Electrify Your Home
New Construction Electrification
Reach Codes Program
Agricultural Electrification Ag Electrification Program Load Management / Demand Response Residential Battery Rebate Program

Over FY 2023-24, 3CE distributed $11 million in incentives across these 11 programs and support services, a $1.8M (12%) increase from FY 2022-23. Approximately $3.9 million, or 36% of the incentive funds distributed, were to projects in underserved communities – awarded to income-qualified customers, Title 1 schools, and small to medium-sized agricultural businesses. The electrification projects incentivized by 3CE’s Energy Programs resulted in a reduction of 3,758 metric tons of CO2e in FY 2023-24, equivalent to taking 968 gas-powered passenger vehicles off the road and avoiding nearly

10.5 million gas-powered miles driven, based on the average mileage for a passenger vehicle in California.

The attached report includes a program description, goals set at the start of the fiscal year, quantitative reporting on metrics, and key takeaways for each of 3CE’s 11 programs. The evaluation also provides portfolio-wide insights into evaluation results, including successes and opportunities for improvement.

These findings and recommendations will inform future and current energy programs’ design, as well as shape strategic initiatives under development to enhance 3CE’s Energy Programs portfolio, such as pilot projects and planned new program offerings.

FISCAL IMPACT:

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

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

The comprehensive evaluation of 3CE’s FY 2023-24 Energy Programs Portfolio supports 3CE’s mission by assessing program effectiveness in providing affordable access to electrification for all 3CE customers.

The evaluation report also informs future programs design to further the agency's commitment to greenhouse gas reductions. The CAC’s feedback on the draft evaluation report will improve the assessment of 3CE’s FY 2023-24 Energy Programs Portfolio.

ATTACHMENT(S):

1. FY 2023-24 Energy Programs Portfolio Evaluation Draft

Energy Programs Portfolio Evaluation
DRAFT
Fiscal Year 2023-2024 1

Cover Page ...............................................................................................................................................

Table of Contents ......................................................................................................................................

Executive Summary ..................................................................................................................................

Introduction ...............................................................................................................................................

Eval Approach & Methodology ..................................................................................................................

Energy Programs Overview.......................................................................................................................

Transportation Electrification .....................................................................................................................

Electrify Your Ride ...............................................................................................................................

E-Bus Program .....................................................................................................................................

Plan, Charge, and Electrify Your Fleet ...............................................................................................

Electrification Grants ...........................................................................................................................

Building Electrification ...............................................................................................................................

Electrify Your Home .............................................................................................................................

New Construction Electrification ........................................................................................................

Reach Codes .........................................................................................................................................

Agricultural Electrification ..........................................................................................................................

Ag Electrification Program ..................................................................................................................

Load Management / Demand Response ...................................................................................................

Residential Battery Rebate Program ..................................................................................................

Findings & Recommendations ..................................................................................................................

Transportation Electrification ..................................................................................................................

Building Electrification ............................................................................................................................

Agricultural Electrification........................................................................................................................

Load Management / Demand Response ................................................................................................

Looking Ahead & Conclusion ....................................................................................................................

Appendix B: Greenhouse Gas Emissions Sources ...................................................................................

Table of Contents
1 2
3 4
5 7
8 9
10 11
12 13
14 15
16 17
18 20
21 22
23 24
25 26
27 28
2

Central Coast Community Energy (3CE) serves the central coast by providing reliable, affordable, clean electricity and electrification programs to reduce greenhouse gas emissions and strengthen our local economy. As part of 3CE’s commitment to actively supporting regional climate action across 3CEs service areas in Monterey, San Benito, San Luis Obispo, Santa Cruz, and Santa Barbara counties, 3CE’s Energy Programs provide customers with tools to accelerate regional electrification through rebates, technical assistance, and optimization of energy use. This comprehensive evaluation of the agency’s fiscal year (FY) 2023-24 Energy Programs portfolio supports 3CE’s mission by assessing program effectiveness, informing future programmatic design, and delivering on the agency’s commitment to transparency and continual improvement. 3CE’s Energy Programs portfolio, through its multifaceted electrification efforts, promotes affordable electrification, inclusive opportunities, and greenhouse gas (GHG) reductions. In turn, 3CE’s evaluation metrics are structured around four key categories – program participation, program performance, program impact, and internal resources. Standardized Key Performance Indicators (KPIs) were developed within each category to uniformly analyze each program’s accessibility, opportunities for improvements, and barriers to participation.

At its September 2023 meeting, the 3CE Policy Board of Directors approved its FY 2023-24 Operating Budget, including nearly $15 million for energy programs incentives. Of the $15 million budgeted for incentives, $11 million, or 73%, was distributed to customers. This is a $1.8 million or 12% increase from the prior fiscal year. Approximately $3.9 million, or 36% of the incentive funds distributed, were for projects in underserved communities, awarded to income-qualified customers, Title 1 schools, and small to medium-sized agricultural businesses.

The electrification projects incentivized by 3CE’s Energy Programs resulted in a reduction of 3,758 metric tons of CO2e in FY 2023-24, equivalent to taking 968 gas-powered passenger vehicles off the road and avoiding nearly 10.5 million gas-powered miles driven, based on the average mileage for a passenger vehicle in California.

By helping customers take personal action to combat climate change through electrification, 3CE’s energy programs have contributed to reducing greenhouse gas emissions and other harmful pollutants in the region, helping to improve air quality. 3CE recognizes the need to continually enhance and refine its programs, and to expand their impact. This report aims to identify areas for improvement, and specifically, to drive better outcomes related to increased program access.

The analysis of data gathered from 3CE’s FY 2023-24 programs is helping to shape the agency’s proposals for future program offerings to better meet customer needs and explore innovative technologies in the renewable energy sector. In this report, design enhancements are recommended for each of 3CE’s 11 programs to increase impact and participation, with an emphasis on income qualified customers. Additionally, pilots are being recommended to test new technologies as a precursor to implementing new programs. These pilots are focused on to demand response and load management, where technologies like battery storage and real time pricing have the potential to empower customers by lowering their costs, and increasing their use of renewable energy.
3CE’s Energy Programs continue to support community resilience in a dynamic energy landscape, while striving toward 100% clean, renewable, and affordable energy.

Executive Summary

1. https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator 1 3

Introduction
4 Central Coast Community Energy (3CE) is a Joint Powers Authority (JPA) comprised of 35 local government agencies across jurisdictions throughout California’s Central Coast. These 35 agencies joined 3CE with a shared goal of gaining more control over their electricity needs to reduce greenhouse gas emissions, support the growth of clean and renewable energy, and access additional economic and environmental benefits. Currently, 3CE serves over 1.2 million customers across Monterey, San Benito, San Luis Obispo, Santa Cruz, and Santa Barbara counties.

In addition to procuring clean and renewable power, implementing sound financial policies, and engaging the community, managing 3CE’s Energy Programs Portfolio is a foundational component of meeting the agency’s core JPA goals. 3CE’s FY 2023-24 Energy Programs were designed to bring meaningful decarbonization and climate action throughout 3CE’s service area via transportation, building, and agricultural electrification along with load shifting / demand response initiatives.

This year’s evaluation focuses on various criteria to assess program design and access across 3CE’s service area. The recommendations made in this report include immediate and long-term improvements to program design, implementation, and outreach. Through annual evaluation, 3CE’s programs continue to empower customers in the Central Coast’s collective renewable energy transition.

Criteria Purpose KPIs
Program
Participation
Where are 3CE’s
incentives being
distributed?
Avg $ funded per application
% of funding distributed by county
% of funding distributed by eligible customer type
Program
Performance
Is the program being
utilized as predicted by
FY plan?
$ incentives distributed
% allocated budget utilized
Achievement of FY 2023-24 program goals
Program
Impact
Is the program making a
positive contribution to
the 3CE community?
$ in all-electric purchases / support enabled
% of purchase cost funded
Greenhouse gas emissions reduced
% of funding distributed to underserved communities
Internal
Resources
Are 3CE resources
being used effectively?
Conversion rate from vendors providing technical assistance Average rebate cycle length including customer payout time Customer Acquisition Costs (for programs with direct marketing) Eval Approach & Methodology
3CE’s FY 2023-24 Energy Programs Portfolio Evaluation assessed all programs according to four criteria – Program Participation, Program Performance, Program Impact, and Internal Resources. Evaluation criteria incorporated metrics from state energy reporting standards to accurately demonstrate program objectives across customers’ income levels and geographic areas. The evaluation framework aligns with 3CE’s broader efforts to implement energy programs that enable an accessible renewable energy transition for all 3CE customers and communities. Individual program evaluations include a program description, program goals, program key performance indicators, staff observations, and key takeaways.

Equity
Through our Energy Programs, 3CE continues to provide support and assistance to underserved communities to ensure equal access to energy programs for all customers. 3CE’s Underserved Communities Outreach and Engagement Plan defined communities as underserved if they face limited access to public investments, energy-related resources, and information. The report considered factors such as geographic location, cultural differences, socioeconomic status, health risks, the digital divide, and exposure to environmental hazards. As part of 3CE’s assessment of its programs’ impacts, 3CE tracked program utilization by underserved communities for all programs, excluding those designed for local government agency participation. A list of programs with equity design criteria are listed below:
5

Program Equipment Measured Type of Emission
Electrify Your Ride Passenger Vehicles On Road Gas
Electrify Your Fleet Passenger Vehicles On Road Gas
E-Bus Type A, C School Bus, Transit Bus On Road Diesel
Electrify Your Home Heat Pump Water Heaters BTU Natural Gas Ag Electrification UTVs, Compact & Standard Tractors Off Road Diesel, Mobile Source Res. Battery Rebate KWh daily load shifted N/A
GHG Accounting Methodology
For this evaluation, GHG emissions avoided were estimated based on emissions from conventional fuel-based systems compared with the electric-based alternatives and a set of calculations and conversion factors found in Appendix A. In accordance with best practices, all GHG emissions estimates are displayed using metric tons of carbon dioxide equivalent (CO2e) as the unit of measure.

GHG emission reductions were conservatively estimated for the following projects:

GHG emissions were not estimated for the following programs:

Plan Your Fleet
Charge Your Fleet
New Construction Electrification
Reach Codes
Stationary sources, Agricultural Electrification
EV charging equipnent, Electrify Your Ride
Communications & Outreach
Focused outreach, marketing, and communications are critical to driving awareness and participation in Energy Programs. 3CE’s strategies to build agency awareness and promote Energy Programs includes:

Community Engagement: 3CE is an active member of 65 local and diverse organizations throughout its service territory and in FY 2023-24 participated in over 114 community events and 70 meetings with City and County staff Customer Service & Education: 11,500 calls and 3,500 emails, 15 webinars and workshops focused on Energy Programs, rates, billing, and electrification topics, 28 Member Agency presentations, 16 Farmworker outreach events, 2500 Spanish speaking customers served
Marketing & Communications: $1.6 million dedicated to agency, $210k dedicated to Energy Programs, 332 posts on social media, 37,000 website views, 16% post engagement 6

Energy Programs Overview
3CE’s Energy Programs Portfolio provides customers incentives and technical assistance to encourage fuel-switching and the adoption of electric technologies in the transportation sector, building sector, and agricultural sector, along with supporting demand response initiatives to optimize energy use.

FY 2023-24 was 3CE’s fourth full year of administering and implementing energy programs. 3CE offered 11 Energy Programs as indicated below. The incentives available through these programs supported 3CE customers in transitioning their homes, workplaces, and transportation from fossil-fuel powered to clean-energy solutions. 7 FY 2023-24 Energy Programs Portfolio

Program Name
Unique Applications
Approved*
Incentive
Budget
Budget
Spent ($)
Budget Spent
(%)
GHG impact
(Avoided MT Co2e)
Electrify Your Ride 1,436
$3,950,000
$4,055,128 103% 3,000
E-Bus 10
$2,000,000
$1,866,761 93% 319
Plan Your Fleet 9
$250,000
$221,650 89% N/A
Charge Your Fleet 9
$1,240,000
$543,544 44% N/A
Electrify Your Fleet 17
$2,100,000
$907,000 43% 189
Electrify Your Home 297
$1,110,000
$1,300,974 117% 108
New Construction Electrification 23
$1,100,000
$1,108,250 101% N/A
Reach Codes 4
$100,000
$133,288 133% N/A
Agricultural Electrification 18
$1,830,000
$442,356 24% 142
Residential Battery Rebate ** 11
$0
$57,800 N/A 90 kWh load shifted daily
Grants 8
$1,155,459
$225,496 20% N/A
Total 1,842 $14,835,459 $10,862,247 73% 3,758 MT Co2e
Energy Programs Overview
8 FY 2023-24 Energy Programs Highlights
In FY 2023-24. 3CE distributed over $10.9 million in incentives across 11 programs and support services, a $1.8M increase from FY 2022-23.
*Some programs allow customers to receive multiple rebates within one application. Total rebates distributed for each program can be found on the program’s metrics page.
**The Residential Battery Rebate Program was not included in the original FY 2023-24 budget. *Excludes 3CE funding towards technical assistance
Program # Equity-Qualified Projects $ Equity-Qualified Projects % of Budget Distributed
to Equity Projects*
Electrify Your Ride 617 $1,393,259 35%
E-Bus 6 $1,354,422 72%
Electrify Your Home 17 $460,085 37%
New Construction Electrification 19 $513,750 46%
Ag Electrification 9 $207,213 50%
Res. Battery Rebate 1 $7,000 12%
TOTAL 6,698 $3,935,729 36%
Table 1: Energy Programs FY 2023-24 Portfolio Metrics
Table 2: Energy Programs FY 2023-24 Equity Metrics

Program Design Improvement
E-Bus Increased funding cap to $400,000 per applicant for the purchase of 5+ buses Plan Your Fleet Expanded program budget and scope to assist more agencies Program Features FY 2023-24 Impact
Technical assistance, including EV charger feasibility studies & designs, for commercial customers looking to electrify their operations
Engaged with 23 commercial customers
Technical assistance for comprehensive fleet electrification planning and charging infrastructure projects, including design and engineering consulting Engaged with 9 Member Agencies
Over 3,500 MT CO2e avoided in FY 2023-24
Equivalent to 393,834 gallons of gasoline consumption avoided Transportation Electrification
Program Design Improvements Implemented in FY 2023-24
9 Equipment Incentivized $ Incentives Distributed

G
O
A
L
S
Incentivize at least 600 EVs and 450 EV
Chargers
Distribute at least 40% of incentives to
income qualified customers
Key
Takeaways
Success: 21% increase in income qualified
customer participation this fiscal year
Opportunity: South Monterey & San Benito
Counties experienced low participation
relative to their population size.
>1% 0.1-0.9% <0.1%
County of Monterey
County of San
Luis Obispo
County of Santa
Barbara
County of
Santa Cruz
County of San
Benito
Electrify Your Ride
Residential & commerical incentives for electric vehicles, chargers, and infrastructure upgrades

PARTICIPATION PERFORMANCE
IMPACT
2,408 Total equipment & assistance approved across
1436 unique applicants in 3CE service area
$4M in incentives distributed
Over $52M in all-electric purchases enabled
Over 3,000 MT CO2e avoided in FY 2023-24
Over 35% incentives distributed to income
qualified applicants

INTERNAL
Customer acquisition
cost
Budget
variance
Eligible applicants
funded
Average days to
fund project
20 100%
$70
<1%
Figure 1: Unique Figure 2: $ Incentivized by County
applications by County
Figure 1: Heat map of rebate dollars per
zip code active accounts
Figure 2: % participation of
total active accounts per zip
Figure 5: Reasons for 211 denied applications
Green signifies large clusters of high
rebate $/zip
“A couple of days ago, I received and deposited the $4,000 check I received from you as a rebate for the lease of my 2025 Nissan Leaf all electric vehicle. I honestly want to let you know, that without that rebate, our family would not have been able to cover the cost of the new lease. On behalf of our household, and all other low income families, who want to do their part to ensure a sustainable energy economy, we are deeply grateful.” -EYR Participant
Figure 4: % Distribution of income-qualified rebates
by county
Figure 3: All-electric purchases enabled by equipment type 10

G
O
A
L
S
Incentivize at least 10 E-buses
Incentivize at least 5 E-buses serving a Title
1 school, low-income, or disadvantaged
community.

Key
Takeaways
Success: A decision to fund multiple buses, made
in July 2024, increased program participation by
over 40% in Q4 of 2024
Opportunity: Although San Benito County has
more than five Title 1 schools, participation in this
Program remains low.

County of Monterey
County of Santa
Barbara
County of Santa
Cruz
Monterey
Santa Cruz
Santa Barbara
E-Bus Program
Incentives for all-electric buses in public schools, school districts, farmworker transit organizations, and public transit agencies

PARTICIPATION PERFORMANCE
IMPACT
Figure 6: Applications by
County
Figure 7: $ Incentivized by County
Over $11.60M in all-electric purchases enabled for 18
buses & EV charging equipment
Equivalent to taking 7 diesel transit/shuttle and/or
school buses off the road in one year
of total incentives distributed to
disadvantaged communities
10 applications approved across 3CE service area $1.9M in incentives distributed Figure 9: Rebate funding profile by applicant type

INTERNAL
FY 23/24 Applicant to
rebate ratio
Average days to
fund project*
Budget
variance
Eligible applicants
funded
3 100%
50%
7%
*Following final document receival
Figure 8: % funding to a Title 1 School or
disadvantaged community, by County
of school bus incentives
distributed to Title 1 Schools
72%
79% Approximately 319 mT Co2 avoided
Average of 2.6 buses funded per unique appliant
46% average of total purchase cost covered
“The rebates we received through this program will allow us to transport kids to where they need to be, even from rural areas. We couldn’t have done this without the help of 3CE funds.” -Santa Cruz City Schools
County of Santa Cruz
17 buses & 1 EV charging equipment funded
11

G
O
A
L
S
Plan Deliver assistance to 5 member agencies
Charge
Incentivize 100 L2 chargers
Incentivize 5 DCFCs
Fund at least one publicly available project
Electrify
Incentivize 50 EVs
Fund at least one project within a low
income or disadvantaged community
PLAN:

Technical assistance for
zero emission fleet planning
ELECTRIFY:

Incentives for purchase of light,
medium, and heavy duty vehicles
Key
Takeaways
Success: Decision to divert unused CYF and
EYF funding to PYF resulted in a 3x increase in
participation of PYF
Opportunity: Popularity of PYF relative to CYF
and EYF demonstrates need to meet customers
where they are and provide assistance at each
stage of the process.
“These dollars are well spent and significantly help us to reduce both GHG and other vehicle exhaust emissions while at the same time increasing our overall operating efficiency and driver comfort. Truly, this has been a win-win engagement.” -Skip Grey, Assistant Director- General Services Department, County of Santa Barbara 3 Program
Engagements
2 Program
Engagements
1 Program
Engagement
Santa Cruz County
Monterey County
Santa Barbara County
Carmel
Greenfield
Marina
Monterey
Soledad
Capitola
Santa Cruz
Watsonville
San Luis
Obispo
Carpinteria
Goleta
Santa Maria
Figure 10: City names reflected on the map
colored by level of engagement
Application
submitted
Final document
receival
Incentive approved
for payment
145 DAYS 5 DAYS
CHARGE:

Incentives for purchase and
installation of EV chargers

PARTICIPATION
15 Member Agencies engaged across 3CE service area

PERFORMANCE
$221,650 in PYF program funds distributed
$504,544 in CYF incentives distributed
$798,000 in EYF incentives distributed
IMPACT
Over $5.6M in all-electric purchases enabled
$4.5M for 44 EVs $686k for 54 L2s $241k for 6 DCFCs
Plan, Charge, and
Electrify Your Fleet
3 Counties, 12 Cities

INTERNAL
PYF participants that also participated
in EYF and/or CYF this FY
Member Agencies hit $150k program
dollar cap
3 56%
Figure 11: Distribution of resources by equipment type
12

Grant
Completion
Key
Takeaways
Success: 3CE invested over $3.4 million in innovative
projects across 3CE’s service area including electrification education and digital equity initiatives
Opportunity: Long lag time between grant approval and
completion - Active grants have been pending for over 3 years, and it takes an average of 1.5 years to complete a grant
Grant Recipient /
Project Partner
Grant Purpose
Grant Approved
Amount ($)
Approval Date Grant Status
Center for Sustainable
Energy
California Vehicle Infrastructure Project -
Central Coast Incentive
$1,000,000 5/10/2019
Active (expected
completion 9/30/25)
Center for Sustainable
Energy
California Vehicle Infrastructure Project - South
Central Coast Incentive
$1,750,000 6/30/2021
Active (expected
completion 9/30/25)
City of Goleta Digital Equity Project $75,000 10/9/2023 Completed (9/30/2024) City of Santa Cruz Public
Works Dept
Municipal Transportation Electrification Plan $75,000 9/28/2022 Completed (1/16/2024) City of Watsonville
Development of an EV masterplan with building
electrification analysis
$150,000 9/28/2022 Active
County of Monterey
Development of a holistic, County-wide
decarbonization framework to electrify
Monterey County Facilities
$150,000 10/6/2022 Active
County of Santa Cruz
Admin Office
Grant funding for regional electrification
projects
$100,000 10/3/2022 Completed (5/1/2024)
Green Light Labs Inc Electrifyze platform $100,000 9/29/2022 Completed (5/30/2024) Electrification Grants
Grants for planning, implementation, and innovation projects in electrification & energy

PARTICIPATION

INTERNAL
8 active & completed grants across 3CE service area at FY-end

PERFORMANCE
$225,496 in funding distributed to
active and completed grants in
FY 2023-24
Grant Approval
504 Days (17 months)
Grant Approval FY-end
Completed Grants
Active Grants
1,154 Days (38 months)
4 2
IMPACT
Digital Equity Project
Students served
Cohorts of courses for digital
basics and fluency
Chromebooks distributed
California Vehicle
Infrastructure Project
Projects
13 Level 2 Chargers
DC Fast Chargers
106
8 63
13 Table 3: Active and Completed Grants in FY 2023-24
“Through the 3CE Planning Implementation Innovation Grant program, we have been able to explore more nimble and creative solutions to drive down carbon emissions and adapt to climate change. Our grant is funding an innovative combined approach to building and transport electrification synergies that can only be achieved when designed together. The program has been a key resource that unlike other, more cookie-cutter funding programs, allows for projects to change with real-world conditions.” -Toto Vu-Duc, Environmental Projects Manager, City of Watsonville

Program Features FY 2023-24 Impact
Process EYH applications, distribute rebate checks, maintain the enrolled contractor list Facilitated nearly 300 EYH
applications
Develops code language and facilitates Reach Code adoption for interested Member Agencies 4 Reach Codes adopted Program Design Improvement
Electrify Your Home
Ensured consistent operation of the EYH program by allowing 3CE staff to quickly and easily compensate for TECH budget shortages when desired New Construction Electrification Expanded program to include rebates for all-electric, market-rate housing Over 122 MT CO2e avoided in FY 2023-24*
Equivalent to powering 16 homes for a year
*avoided emissions from heat pump water heater installations only Building Electrification
Equipment Incentivized $ Incentives Distributed
Program Design Improvements Implemented in FY 2023-24
New Construction Elect. Electrify Your Home
14

G
O
A
L
S
Fund 250 rebates
Support 10 projects at income-qualified sites
Support at least 3 multifamily projects
Key
Takeaways
Success: 26% increase is
projects compared to FY 2022-23
Opportunity: 6% participation by
disadvantaged community
members and contractors
Electrify Your Home
Incentives for replacement of gas appliances with electric heat pump appliances

PARTICIPATION PERFORMANCE
IMPACT

INTERNAL
297 applications approved across 3CE service area
Figure 12: # Applications by Co. Figure 13: $ Incentives by Co. $1,218,885 in incentives distributed
Application Rebate
71 DAYS
Over $4,769,122 in all-electric purchases enabled...

Approx customer
acquisition cost:
54% total applications were eligible and received a rebate Monterey
County
San Luis
Obispo County
Santa Barbara
County
Santa Cruz
County
$233
Figure 15: Total funding by zip code, EYH 2023-24
Total rebate amount (USD)
6% of total applications were equity applications
15 Figure 14: Heat Pump Purchases Incentivized
Figure 16: Income Qualified Applications by County
Figure 17: Unsuccessful Applications

G
O
A
L
S
Support 200 new, all-electric housing units
Support 1 farmworker housing project
Incentivize projects in all five counties
“It was simple (building all electric). It was sustainable and offering the best product to the family. They can live a safe and clean life with no contaminants. This whole project has been built with efficiencies and the highest standard and we continue to build to that standard.” - Nick Rasmussen, CEO Habitat for Humanity SLO Key
Takeaways
Success: The program incentivized
234 affordable units, exceeding the
program goal by 34 units
Opportunity: Low applications for
designated Farmworker Housing
San Luis Obispo
County
Santa Cruz
County
Monterey
County
Santa Barbara
County
New Construction Electrification
Incentives for development of all-electric residential, multi-family, and agricultural housing

PARTICIPATION PERFORMANCE
IMPACT
23 applications approved across 3CE service area $1,103,250 in incentives distributed

INTERNAL
459 all-electric units incentivized
including 234 affordable units incentivized
10 Applications from
previous fiscal years
13 Applications from
FY 23-24
33%
Application to rebate rate for
FY 23-24 applicants
69%
Cancelled applications due to
delayed construction;
Applicants invited to reapply
post project completion.

Figure 21: Total funding by zip code, NCEP FY 2023-24
Total rebate amount (USD)
16 Figure 18: # Applications by Co. Figure 19: $ Incentivized by Co.

Figure 20: Units Incentivized by County
San Benito County participated with 24 units in FY 21/22 Figure 22: $ Incentivized by Type

GOAL
Provide support for 6
Member Agencies to
adopt Reach Codes
Key
Takeaways
Success: Inclusion of technical
assistance for code updates facilitated
re-adoption of 2 reach codes.

Opportunity: 4 reach codes adopted, 2
updated.

INTERNAL *
Interest Code passes
second reading &
is implemented
Code retired
or readopted
185 DAYS 298 DAYS
Technical Assistance
$133k towards implementing codes and updating
previously adopted
140 Permits impacted per year
100*
Anticipated charger projects
by 2030
*City of Goleta EVI code
Reach Codes
Technical assistance for Member Agencies to adopt and codify reach codes that promote building electrification and EV infrastructure

PARTICIPATION PERFORMANCE
IMPACT
4 new Reach Codes adopted across 3CE service area
$133,288 in program funds distributed
17 Figure 23: Number of code efforts across agencies
Figure 24: number of code efforts by code type
Code Type Impact
Existing
Building-Single Family
Flexible menu of energy efficiency
measures, electrification measures,
and electric readiness requirements for
major renovations
New
Construction
Flexible menu of energy efficiency
measures, electrification measures,
and electric readiness requirements for
new buildings
Electric
Vehicle
Infrastructure
Increases EV charging spaces for new
developments, remodel projects,
beyond CALGreen code requirements
Table 4: Description of each reach code type implemented this FY

Program Features FY 2023-24 Impact
Technical assistance, including EV charger feasibility studies & designs, for ag customers looking to electrify their operations
Engaged with 4 agricultural customers
Program Design Improvement
Agricultural Electrification
Increased the rebate cap to two projects per customer per fiscal year, as well as expanded technical assistance offerings to include more general resources on ag electrification and upcoming regulatory requirements
Over 142 MT CO2e avoided in FY 2023-24
Agricultural Electrification
Program Design Improvements Implemented in FY 2023-24
18

G
O
A
L
S
Support at least 1 DCFC EV project
Incentivize at least 13 electrification projects
Provide at least 60% of funds to small businesses
Key
Takeaways
Success: The program funded five (5)
compact tractors; an emerging technology
championed by local manufacturers
Opportunity: High density ag regions in the
Counties of Monterey and San Benito
continue to experience low program
participation
Most Funded Equipment:
5 5
Compact Tractors
Standard Tractors
County of Monterey
County of San
Luis Obispo
County of Santa
Barbara
County of
Santa Cruz
County of San
Benito
Figure 27: Small Business Applications by County
County of Monterey
County of San
Luis Obispo
County of Santa
Barbara
County of Santa
Cruz
Number of Ag
Accounts
Figure 26: $ Incentivized by County

INTERNAL
Ag Electrification Program
Incentives for the purchase of all-electric agricultural equipment for commercial businesses in, or directly supporting, the agriculture industry
IMPACT

PARTICIPATION
18 applications approved
Figure 25: Applications by
County

PERFORMANCE
$414,058 in incentives distributed
Over $1.28M in all-electric purchases enabled
Customer outreach -
acquisition cost
50% of incentives distributed to small businesses
Figure 28: Top Five (5) funded zip codes relative to Ag rate density in FY 2023-24
Average days to
fund project
Applicant to
rebate ratio:

Eligible applicants
funded
8 100%
$2.7k
69%
Top 5 ZIP: 95076, 93454, 93458, 93923, 93451
142 mT CO2e avoided by incentivizing electric
alternatives to off-road diesel equipment
Tier 1 Projects
10 Tier 2 Projects
8 “The Ag Electrification Program has been instrumental in allowing us to test, try, and purchase new electric equipment at a cheaper cost than a diesel alternative. Thank you!” -SuberBee Rescue
County of Santa Barbara
Tier 1: Smaller equipment, Tier 2: Larger equipment
Top 5 Zip
code
designation
19

Program Features FY 2023-24 Impact
Allow 3CE to track enrolled battery performance and load shifting to ensure program requirements are met.

Over 90 kWh of load shifted daily during 4 pm - 9 pm
peak hours; equivalent to 2.7 homes' electricity use
in a year.

Program Design Improvement
Demand Side Management
The Residential Battery Rebate Program will allow 3CE staff to gain valuable insights into the demand response space before expanding to a larger scale.

Over 90 kWh of residential battery storage capacity installed Load Management/Demand Response
Program Design Improvements Implemented in FY 2023-24
20

GOALS
Launch a new, residential battery
rebate program
Key
Takeaways
Success: 50 applications received; high interest in
program’s launch and first quarter
Opportunity: 30% of applications discharging
correctly; 1 income-qualified applicant paid
Over 90 kWh load shifted daily during 4 pm - 9 pm
peak hours
Residential Battery Rebate
Incentives to install residential, behind-the-meter battery storage systems

PARTICIPATION PERFORMANCE
IMPACT

INTERNAL
11 applications approved across 3CE service area $57,800 in incentives distributed Over $374,473 in battery purchases enabled
Average application received $5,255
20% of project cost covered
Figure 31: Added battery capacity
(kWh) by zip code, 180kWh total
Zip code with >25
kWh of added
capacity
(93908, Monterey
County and
95033, Santa Cruz
County)
Battery capacity in kWh
$7,000 distributed to CARE / FERA applicant
21 Figure 33: Applicants connected to load
tracking platform
*1 applicant’s battery manufacturer is unsupported by vendor Figure 32: kWh of load shifted daily during peak period (4-9 PM) per month
Figure 30: Applications received by applicant type
Figure 29: Applications by county

Findings & Recommendations
Program Participation
3CE’s Energy Programs served over 1,800 unique applicants across all five counties. The majority of applications are coming from the County of Monterey, County of Santa Cruz, and County of San Luis Obispo, where participation remains concentrated in urbanized areas small areas of the county. Five Energy Programs lacked participation from at least one county. While overall participation in 3CE’s Energy Programs is growing, there are continued needs for increased education, awareness, and outreach to improve accessibility for all customers. 3CE engaged 43% of Member Agencies in at least one fleet electrification program. The expansion of Plan Your Fleet enabled a 3x increase in program participation and 56% of participants converted to purchasing EVs and/or EV Chargers.

While the expansion of Plan Your Fleet is allowing 3CE to meet the immediate needs of Member Agencies, there are long-term opportunities to develop the Electrify and Charge Your Fleet offerings to provide continuous support from design to purchase and installation.

Overall, 3CE distributed a total of approximately $11 million in incentives and support across the 3CE community in FY 2023-24, a $1.8 million increase from last fiscal year. Preliminary findings and recommendations from the data collected for this Portfolio Evaluation signified a need for a greater focus on incentives for priority populations that lack access to electrification resources across all sectors, opportunities to incentivize behavior shifts through direct customer cost savings, and increased awareness and education about the long-term positive value of electrification. 22 Program Performance
In FY 2023-24, 3CE utilized 73% of the total Energy Programs budget, a 17% increase from the prior fiscal year. Moreover, the Electrify Your Ride, Electrify Your Home, New Construction Electrification, and Reach Codes programs exceeded budget expectations. 3CE’s Agricultural Electrification Program continued to experience the lowest performance, emphasizing opportunity to revise scope and design to better support 3CE’s agricultural community.

Cumulatively, the portfolio goals achieved in FY 2023-24 included:

Transportation Electrification: incentivizing over 1,039 EVs and 698chargers, distributing over 72% of E-bus funding to disadvantaged communities
Building Electrification: funding over 297 heat pump water heater and HVAC units, supporting all-electric construction of over 459 housing units
Ag Electrification: incentivizing over 18 agricultural projects Load Management / Demand Response: launching a residential battery rebate program Program Impact
36% of 3CE’s budget was distributed to equity-qualified projects, including customers enrolled in CARE or FERA programs, Title 1 schools, small businesses, and medical baseline customers. While the E-bus program distributed over 72% of incentives to equity projects, enhanced support is required for the Residential Battery Rebate Program and Electrify Your Home. 3CE is actively conducting listening sessions with stakeholders to gather feedback on various support opportunities. 3CE’s Electrify Your Ride Program distributed 7% of incentive funding to commercial customers, who often have larger and more expensive projects. The New Construction Electrification Program saw a lack of participation from designated farmworker housing project developers. While marketing and outreach will continue to programs’ primary customer segments, there is opportunity to explore support secondary customer segments through community feedback and research on electrification barriers throughout the service area.

Internal Resources
3CE currently offers various levels of technical assistance to commercial customers and Member Agencies through Electrify Your Ride’s concierge service, Plan Your Fleet, and Reach Codes programs. Plan Your Fleet and Reach Code technical assistance has remained beneficial to Member Agencies, with Plan Your Fleet’s vendor contract expanded this fiscal year to support more participants. Electrify Your Ride’s concierge service engaged with over 23 commercial customers, none of whom ultimately participated in the program. 3CE is actively working to improve assistance and expand services to agricultural customers.

The Energy Programs team grew to five staff members in the past fiscal year, with two additional recruits planned for FY 2024-25. As a result of staff dedication and agency-wide assistance, 3CE maintained program operations throughout the year, with 3CE customers receiving their rebates, on average, within 25 days after all final documents submitted. 3CEremains committed to maintaining proficient skills and expertise across the team through investment in staff’s professional development and through intentional hiring.

Transportation Electrification
Looking Ahead...

Electrify Your Ride
Electric Bus
Plan Your Fleet
Charge Your Fleet
Electrify Your Fleet
Transportation Grants
Electrify Your Ride
EV Charger Asset Program
Public Agency Fleet Electrification
Continue supporting Electrify Your Ride by refining incentive offerings, with continued focus on 3CE’s underserved communities.

Construct an EV Charging Asset Pilot that includes 3CE-owned and operated Level 2 and DC Fast EV chargers for both workplace and publicly available charging.

Develop a Public Agency Electrification Program that encompasses a continuous transition from electrification planning to electrification purchases.
3CE’s Electrify Your Ride Program remains 3CE’s flagship program, enabling over $52 million in transportation electrification purchases for 3CE customers in FY 2023-24. The program has proved successful in assisting residential customers with, on average, 8% of their combined EV and EV charger purchases, as well as assisting in costs required to make electrical upgrades to support EV charging. The program’s marketing and awareness through in-house advertising contributed to over 1,436 unique applicants and will continue with increased focus on South Monterey and San Benito Counties, which experienced the lowest normalized participation per eligible accounts.

Program awareness and electrification education should also continue for all customers, with enhanced support for 3CE customers in our underserved communities. The program was just 5% shy of meeting its goal of 40% funding distribution to income qualified residents. The discrepancy may result from the increasing costs associated with electrifying. EVs continue to become more expensive, with the purchase price of a new EV, on average, being 16% higher than the overall new car market average. This trend makes 3CE’s incentive programs all the more important in enabling affordable electrification to all customers.

With changes in market trends, it is important to continue refining incentive offerings including enhanced incentives for the underserved community.

While EV adoption in general and participation in programs like Electrify Your Ride is on the rise, EV purchases are significantly outpacing installation of new public and shared EV charging infrastructure. The California Energy Commission’s latest EV Infrastructure Assessment Report set a target of one million EV chargers by 2030 and two million EV chargers by 2035. However, at present, California only has 200,000 public and shared EV chargers, this continues to emphasize the lack of publicly accessible and workplace EV charging available. In response, 3CE has launched an EV Charging Asset Pilot that includes 3CE-owned and operated Level 2 and DC Fast EV chargers for both workplace and publicly available charging. This pilot will enable 3CE to learn the steps needed to take a more proactive stance in eliminating barriers to everyday charging accessibility across 3CE’s service area.
3CE’s E-bus Program was expanded in FY 2023-24 to allow incentives for multiple e-bus purchases, enabling over $11.6M in school and transit electrification for public and transit agencies across 3CE’s service area. 3CE’s Plan Your Fleet Program saw a 3x increase in participation from last fiscal year, expanding to support over nine Member Agencies in their fleet and charging infrastructure plans. Despite the increased assistance offered through Plan Your Fleet, only 56% of participants also purchased EVs and EV chargers through Electrify Your Fleet and/or Charge Your Fleet. While long implementation timelines do delay program participation in Electrify and Charge Your Fleet, there is an opportunity to create a continuous transition from electrification planning to electrification purchases, incorporating successes from the E-bus program expansion and extending technical assistance opportunities to all public agencies through a Public Agency Electrification Program.

2. https://www.coxautoinc.com/market-insights/kbb-atp-december-2023/ 2 23

3CE’s New Construction Electrification Program exceeded its incentive budget in FY 2023-24 by distributing over $1.1 million in incentives to support new, all-electric housing units across 3CE’s service area. The program design was enhanced this fiscal year to include incentives for market-rate housing, which represented 46% of total units incentivized. While the program funded 24% more affordable housing units in comparison to last FY, there was no participation from qualified farmworker housing developments. Through pursuing opportunities for feedback from housing developers, county planning departments, and key agricultural stakeholders, 3CE can better understand the farmworker housing landscape and regulations around farmworker housing to ultimately inform program design improvements that support opportunities for agricultural-employee housing electrification. 3CE’s Electrify Your Home Program continues to see participation grow resulting in a 49% increase in budget spend compared to the previous fiscal year. In FY2023-24 the program ddistributed396 heat pump rebates, resulting in an increase of 153 rebates distributed as compared to the prior fiscal year. Electrify Your Home Program’s partnership with TECH Clean California enables customers to take advantage of state and 3CE funds, but also restricts 3CE’s funding longevity for completed projects, and limits 3CE’s ability to explore fundamental program enhancements to improve access to the program. Income-qualified applicants in the Electrify Your Home Program remained low at 6% this fiscal year, and about 2% overall since the program launched in 2022. Furthermore, there was lack of participation from income-qualified customers in the County of Santa Cruz despite the availability of eligible contractors. In addition, there was a lack of participation from income qualified single-family projects, despite single family homes making up the majority of projects overall.

Given the need to address TECH Clean California funding deficit, lack of participation from income-qualified customers, and the narrowing of eligible contractors to only those enrolled in the TECH program, 3CE determined an overall review of the program, involving community input, was needed. In collaboration with 3CE’s Community Advisory Committee, the agency conducted a public outreach process beginning in October 2024 to improve the overall administration of the program, and explore prospective improvements such as direct install, home assessments, broaden contractor eligibility, and expand rebate offerings in an Electrify Your Home V2.0 Program.
3CE’s Reach Code Program supported four member agencies with technical assistance to develop and adopt four reach codes, anticipated to impact over 140 permits per year and result in construction of 100 EV charger projects by 2030.

Furthermore, 100% of the Reach Codes developed under 3CE’s program were approved unanimously by the governing boards of each jurisdiction. While the program received high participation in FY 2023-24, there continues to be concern about legal challenges to building codes that go beyond state requirements. Therefore, there is a continued need for education around Reach Code benefits, assistance in drafting and/or development of, and advocacy for implementation. Furthermore, Building Codes continue to update every three years and therefore Member Agencies require occasional limited assistance to update Reach Codes, including answering technical questions, developing customized reach codes, preparing proposals to councils, and developing implementation tools to help cities and counties enforce their reach codes. With various political, social, and environmental sensitivities around Reach Code adoption, assistance could be expanded to include marketing, outreach and education to assist member agencies in navigating the changing landscape.

Building Electrification
Looking Ahead...

Continue building relationships with developers to understand the building electrification landscape, and work with local planning departments to support opportunities for agricultural-employee housing electrification Review the Electrify Your Home Program with community input and participant feedback to improve the overall administration of the program, and explore prospective improvements such as direct install, home assessments, broaden contractor eligibility, and expand rebate offerings in an Electrify Your Home V2.0 Program.

Consider increasing investment in Reach Code adoption to include marketing, outreach and education to assist member agencies in navigating the changing landscape.

New Construction Electrification
Reach Codes
Electrify Your Home
New Construction Electrification
Reach Codes
Electrify Your Home v2.0
24

Agricultural Electrification
3CE's Ag Electrification Program enhanced offerings this fiscal year to allow up to 2 rebates per customer, resulting in over $1.28 million in all-electric purchases supported by rebates for ag customers. However, the Program continues to experience low participation, even in with high density ag regions such as Monterey and San Benito counties. This trend motivated 3CE staff to conduct listening sessions in FY 2023-24 to hear directly from the agricultural community in 3CE’s service area about the barriers to ag electrification. Key takeaways included: perceived lack of grid capacity for EV chargers, need for technical support, high upfront purchase cost with uncertainty of new technology benefit, and general need to minimize both operational and upfront capital risks associated with ag electrification.

An example of the electrification challenges in agricultural technologies can be seen with electric tractors. The electric tractor market is still new and expected to have a compounded annual growth rate (CAGR) of 13%, driven by improvements in battery energy density, charging infrastructure, and range. Furthermore, 3CE’s Ag Electrification focused listening session in Santa Maria included participant comments related to questions in reliability for new electrification technology and need for availability of infrastructure for charging. To improve support for customers that are navigating the lack of charging infrastructure for ag equipment, 3CE expanded the Ag Electrification program to include technical assistance for installing DC Fast Charging infrastructure for Ag operations, including development of a toolkit with resources for Ag customers expected to be completed in 2025.

T3CE sees an opportunity to better align the Ag Electrification program with customer needs by conducting outreach to gather input, and researching the ag electrification landscape and benefits of emerging technologies. 3CE plans to inform an improved Ag Electrification v2.0 Program that provides impactful support and assistance to 3CE ag customers in their electrification journeys. This would follow a similar community-based input process for enhancements being made to Electrify Your Home 2.0 and could begin as part of the FY2025-26 CAC workplan.

In addition to reducing the cost of electric ag equipment, 3CE has engaged in the Hourly Flex Pricing Expanded Pilot 1, which provides an opportunity for savings on customers’ monthly energy bills. The program encourages ag customers to proactively shift operations away from times with high grid demand and therefore more costly energy prices through real time pricing and hourly forecasts. Early participation in the pilot will inform opportunities to expand the offering to eligible 3CE residential and commercial customers.

The Hourly Flex Pricing Expanded Pilot 1 also provides technical support and automation rebates, allowing ag customers to work directly with an approved vendor to select and purchase an automation controller that will allow ag customers to shift load to lower cost and more renewable times of the day without manually turning on and off pumps. If this initial pilot is successful, 3CE will consider designing a dedicated 3CE Ag Automation Pilot, incorporating from the prior pilot’s successes.

Looking Ahead...

Continue awareness and education campaigns to ag customers around the benefits of electrification and resources available and explore methods that directly minimize the upfront capital burden on customers with limited funding resources.

Collect feedback from customers and conduct additional research on the ag electrification landscape and benefits of emerging technologies, to create an improved Ag Electrification v2.0 Program that provides impactful support and assistance to 3CE ag customers in their electrification journeys.

Enable ag customers to save energy costs directly through an Hourly Flex Pricing Expanded Pilot 1, which will facilitate the shifting of operations during peak times through real time pricing for week ahead hourly forecasts.

Ag Electrification Program
Hourly Flex Pricing Expanded Pilot 1
Ag Electrification v2.0
Ag Automation Pilot
3 3. https://www.coxautoinc.com/market-insights/kbb-atp-december-2023/ 25

The Residential Battery Rebate Program was launched in Q4 of 2024 to support customers in their adoption of residential battery storage systems. The program was positively received by the community, including positive media coverage from solar installers, and has added 180 kWh of battery storage capacity. However, the program saw low compliance with battery discharge requirements, resulting in only 30% of applications discharging their battery correctly and receiving the rebate. To address this customer adoption barrier, 3CE is working with the program vendor to offer the option of a simple opt-in link for battery discharge scheduling, which will allow customers to more easily meet discharge requirements during peak hours between 4 pm - 9 pm.

In the first six months of the Program’s launch, 46% of enrolled customers have a leased battery system. Of the CARE or FERA customers, 66% of applications were with leased battery systems. Consequently, allowing participation for leased battery systems will support customers’ upfront capital costs and align with the program’s goal of 15% participation by income-qualified customers.

While the Residential Battery Rebate Program has resulted in over 90 kWh load shifted daily during peak hours, there is opportunity to increase this number through a Battery Storage Demand Response (DR) Pilot that would include commercial scale offerings and engage with the California Energy Commission’s Demand Side Grid Support Program for event trigger incentives. Staff is considering a pilot that would allow 3CE to take active control of customers’ batteries within agreed to parameters. The batteries then have the potential to be aggregated into a larger Virtual Power Plant (VPP) to increase the impact in locations experiencing grid stress.

In Q1 2025, 3CE will participate in an Hourly Flex Pricing Expanded Pilot 2. will start in Q1 2025. This real-time pricing pilot will allow commercial and residential customers to review forecast rates a week ahead and modify their load to match the least cost hours. These dynamic rates will empower customers to both save money and use more renewable energy.

Finally, 3CE is researching technologies and vendors for a possible Bi-Directional Charging Pilot. This could be in partnership with 3CE’s EV Charger Asset Pilot, where one could charge their EV at work during the day when the power is lower cost and more renewable and then discharge a portion of their EV battery at home during peak hours, reducing cost and associated emissions.

Load Management / Demand Response
Looking Ahead...

Implement Hourly Flex Pricing Expanded Pilot 2 to test the impact of real time pricing to reduce customer cost and increase use of renewable energy.

Assist customers with meeting Residential Battery Storage Program requirements though an opt-in scheduling tool and customer-facing dashboard.

Explore further expanding demand response offerings through a Battery Storage Demand Response Pilot with active control of battery discharge and a Bi-Directional Charging Pilot for maximizing use of EV batteries.

Residential Battery Rebate
26 Battery Storage DR Pilot
Bi-Directional Charging Pilot
Hourly Flex Pricing Pilot 2

Electrify Your Ride
Electric Bus
Plan Your Fleet
Charge Your Fleet
Electrify Your Fleet
Transportation Grants
Looking Ahead & Conclusion
Central Coast Community’s Energy Programs invested $11 million to support customers in avoiding over 3,758 MT CO2e emissions. The portfolio evaluation emphasized 3CE’s continued efforts to improve accessibility of programs to all customers, strengthen support and technical assistance in electrification projects,and enhance opportunities for underserved communities.

Through further analyzing findings and implementing recommendations discussed in the evaluation, 3CE is solidly on a path to growing our impact on the Central Coast through energy programs that reduce greenhouse gas emissions and support 3CE’s local economy.

In the coming years, 3CE will continue to administer and enhance its Energy Programs portfolio to increase participation, improve performance, and expand impact. Below is a path for this portfolio enhancement based on the recommendations contained in this report. The forward view creates equivalent emphasis in each area of concentration and creates an avenue whereby our programs can directly support the agency’s core mission of reducing reliance of fossil fuels on our energy grid.

Current 3CE Energy Programs Portfolio
Transportation
Electrification
Building
Electrification
Agricultural
Electrification
Demand
Response
New Construction Elect.

Reach Codes
Electrify Your Home
Ag. Electrification Program Residential Battery Rebate
Electrify Your Ride
EV Charger Asset Program
Public Agency Fleet Elect.

Recommended 3CE Energy Programs Portfolio
Transportation
Electrification
Building
Electrification
Agricultural
Electrification
Demand
Response
New Construction Elect.

Reach Codes
Electrify Your Home v2.0
Battery Storage DR Pilot
Bi-Directional Charging Pilot
Hourly Flex Pricing Pilot 2
Hourly Flex Pricing Pilot 1
Ag. Electrification v2.0
Ag Automation Pilot
The ongoing success of 3CE’s Energy Programs relies on support and input from the community. Feedback from customers, community members, Member Agencies, and board and council members will inform future program design, implementation, outreach, budgeting, evaluation, and reporting. Each of these areas will evolve over time as a reflection of the agency’s commitment to continual learning and improvement.

Please direct comments and feedback to: [email protected] 27

Emissions Factors/Intensities Value Unit Source
Gasoline 8.78 kgCO2e/gal 1
Diesel 10.21 kgCO2e/gal 1
Average Emissions Intensity 1 0.247 tCO2e/MWh 2
Average Emissions Intensity 2 0.363 tCO2e/MWh 3
Passenger Vehicle Value Unit Source
Avg fuel economy 25 Miles per gallon 4, 5(2)
Miles driven per year 10000 Miles/year 5(1), 6
Metric tons CO2e/year
(passenger)

4.60 MTCO2e/year 6
Gallons gas per year 400 Gallons/year 5(3), 6
EV kWh per year 3460 kWh/year conversion
E-bus -Type A Value Unit Source
Avg fuel economy 6.2 MPG 5(2), 7
Miles driven per year 14302 Miles 5(1)
Gallons diesel per year 636 Gasoline Gallon Equivalent 5(3) EV Efficiency 2.84 kWh/mile 8
E-bus -Type C Value Unit Source
Avg fuel economy 6 MPG 5(2), 7
Miles driven per year 6993 Miles/year 5(1)
Gallons gasoline per year 2123 Gallons/year 5(3)
EV efficiency 42940 kWh/mile 8
Appendix A: Greenhouse Gas Emissions Calculations Inputs, Conversion Factors, and Sources
28 For transportation and agricultural electrification projects, the annual energy consumption in terms of kilowatt-hours (kWh) was calculated for both conventional and electric systems. The emissions associated with gasoline (passenger vehicles) and diesel (all Type A, C buses, transit buses, and off-road mobile agricultural equipment) were then converted to their CO2 equivalencies based on emissions factors and carbon intensity of the local grid. Building electrification projects included only those with a Heat Pump Water Heater incentive, utilizing previously determined energy usage and emissions avoidance by the New Buildings Institute for a more streamlined calculation. The overall approach used emissions factors specific to the 3CE service area and employed modified State protocols for emissions calculations to ensure conservative and transparent reporting.

E-bus -Transit Bus Value Unit Source
Avg fuel economy 3.40 MPG 5(2)
Miles driven per year 42940 Miles 5(1)
Gallons diesel per year 9605 Gasoline Gallon Equivalent 5(3) EV efficiency 3.6 kWh/mile 8
Water Heater Value Unit Source
Gas Water Heater 1433 Kg CO2e/yr 9
Heat Pump Water Heater 1219 kWh/yr 9
Ag equipment (50 HP equipment) Value Unit Source
Annual Hours used 1000 Hours/year 10
CO2e equivalent 32.9 lbs/hour CO2e 10
CO2e equivalent 14.92 Kg/hour CO2e conversion
1 HP equivalency 0.736 kW conversion
Energy Economy Ratio 3.8 n/a 11
Diesel Energy Content 11.6 kWh/kg 12

Source # Source Name Link
1 EPA https://www.epa.gov/system/files/documents/2022-04/ghg_emission_factors_hub.pdf 2 3CE Power Content
Label (2021)
https://www.energy.ca.gov/filebrowser/download/4606
3 3CE Power Content
Label (2024)
https://3cenergy.org/wp-content/uploads/2025/01/3CE-2024-PCL-R7-FINAL.pdf 4 United States
Department of
Transportation
https://www.bts.gov/content/average-fuel-efficiency-us-light-duty-vehicles 5 United States
Department of Energy
https://afdc.energy.gov/data/10309 https://afdc.energy.gov/data/10310 https://afdc.energy.gov/data/10308 6 EPA
https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle#:~:text=A%20typical%20passenger%20vehicle%20emits,of%20miles%20driven%20per%20year. 7 CARB ZEB Pilot
Deployment Project
https://ww2.arb.ca.gov/sites/default/files/2021-
10/sac%20ze%20school%20bus%20deployment%20project%20final%20report.pdf 8 CARB SDMTS ZEB
Transition
https://ww2.arb.ca.gov/sites/default/files/2020-12/SDMTS_ZEB_Fleet%20Transition%20StudyADA12072020.pdf 9 New Buildings Institute HPWH vs Gas Tank CO2e Calculator.xlsx 10 CARB Ag Equipment
Emissions Inventory
https://ww2.arb.ca.gov/sites/default/files/2021-
07/AG2021_Technical_Documentation_Final_DRAFT_ADA_PDFA.pdf 11 CARB GHG
Quantification
Methodology – Off
Road
https://ww2.arb.ca.gov/sites/default/files/auction-proceeds/carb_offatd_finalqm_16-17.pdf 12 US DOE Fuel Properties
comparison
https://afdc.energy.gov/fuels/properties
Appendix A: Greenhouse Gas Emissions Calculations Inputs, Conversion Factors, and Sources
29

CONTACT:
3CE NORTHERN OFFICE
70 Garden Court Suite 300
Monterey ,CA 93940
For all PG&E customers
Email: [email protected]
3CE SOUTHERN OFFICE
1026 Palm Street
San Luis Obispo ,CA 93401
For all SCE customers
Email: [email protected]

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: Presentation on the FY 2024-25 Mid-Year Budget Forecast DATE: May 14, 2025
RECOMMENDATION:

Receive a presentation on the FY 2024-25 Mid-Year Budget Forecast.

BACKGROUND:

The Mid-Year Budget Forecast (Forecast) is a critical management tool that evaluates financial performance and projections based on historical trends, current conditions, and future assumptions. It supports data-informed decision-making by identifying trends that may impact 3CE’s financial health, strategic goals, and procurement needs. The Forecast also serves as the starting point for developing the upcoming fiscal year’s budget and includes projections for the next two fiscal years.

On September 19, 2024, the Policy Board adopted the FY 2024-25 budget and 2025 electric generation rates with $730.3 million in appropriations, $770.3 million in estimated revenue, and a $40.0 million addition to reserves, reflecting a 23% increase in appropriations due to new community enrollments and higher energy costs. On March 19, 2025, the Board adopted adjustments to 2025 rates effective April 1, in response to impacts of significant changes to the Power Charge Indifference Adjustment (PCIA) implemented through the finalization of IOU rates in the Energy Resource Recovery Account (ERRA) proceeding and revised retail load based on an updated forecast based on historical performance. The rate adjustments were necessary to maintain financial stability, recover projected shortfalls, and ensure continued competitive rates across all customer classes. These developments underscore the value of a continuous forecasts as a proactive tool to assess fiscal conditions and guide timely adjustments that strengthen 3CE’s financial resilience heading into the next budget cycle.

DISCUSSION/ANALYSIS:

The Forecast estimates current year expenditures of $642.8 million, a $87.5 million (12%) variance to the adopted budget. Operating expenditures can be classified into two categories: energy and non-energy costs. Non-energy operating expenditures are projected at $42.7 million, compared to a budget of $65.1 million, a 34% variation. The lower non-energy operating costs are attributed primarily to lower capital assets expenditures for acquiring office locations in Monterey and Santa Cruz, with lower personnel costs from staffing vacancies, lower-than-expected professional services, and energy program incentive payments. The forecasted years of FY 2025-26 and FY 2026-27 assume higher costs for personnel based on full funding for all positions, higher benefit and salary expenses based on competitive market trends, increased customer participation in energy programs, and cost adjustments to ongoing service and supply costs.

The Forecast estimates cost of energy (COE) for the year to be $600.1 million, a $65.2 million (10%) favorable variance to the adopted budget. The variance compared to budget results from lower-than-anticipated Renewable Energy Certificates (REC) costs resulting from a drop in market prices, higher-than-anticipated revenues from participation in the congestion revenue right auctions, and higher sales of wholesale energy, partially offset by higher resource adequacy (RA) costs. FY 2025-26 and FY 2026-27 forecasted years assume lower COE compared to the current year due to lower energy attribute costs (RA and RECs) offset by higher energy costs based on increases to market prices. Lower energy attributes are forecasted as new projects come online, such as Panoche, Midway, and SunZia, which will reduce purchases of attributes compared to the current year. Variables that could impact COE projections in the outlying years include delays in PPAs, market prices for energy, energy attributes, and RA under the Slice-of-Day paradigm.

The Forecast estimates total revenue at $679.9 million, a $73.2 million (10%) variance compared to the adopted budget. Net revenue from the sale of electricity is projected at $660.9 million, $85.1 million under budget, or 11%. Lower-than-anticipated load is the primary factor for the variance in electric generation revenue. In late 2024, staff assessed the long-term forecast assumptions and adjusted them Projected Financials with Prior Year Actuals
FY 2023-24
Actual
FY 2024-25
Adopted Budget
FY 2024-25
Mid-Year Forecast
FY 2025-26
Forecast
FY 2026-27
Forecast
Net Electricity Sales 544,358,419 745,962,356 660,909,347 649,122,905 640,133,788 Interest and Investment Returns 12,893,661 7,000,000 10,770,808 8,000,000 8,200,000 Other Income 98,215 68,400 8,182,430 72,000 72,000
Sub-Total Revenues 557,350,295 753,030,756 679,862,585 657,194,905 648,405,788 Capital Infrastructure Reserve - 17,318,000 2,780,254 - - Total Financing Sources $ 557,350,295 $ 770,348,756 $ 682,642,839 $ 657,194,905 $ 648,405,788 Cost of Energy 548,776,152 665,267,116 600,074,023 569,605,897 556,528,447 Salaries and Benefits 7,830,528 12,585,841 11,203,086 13,574,919 15,056,766 Services and Supplies 24,749,921 35,177,798 28,751,007 34,014,088 36,820,576 Capital Assets - 17,318,000 2,780,254 - -
Total Financing Uses $ 581,356,601 $ 730,348,756 $ 642,808,370 $ 617,194,905 $ 608,405,788 Total Budgeted Change to Net Position $ (24,006,306) $ 40,000,000 $ 39,834,469 $ 40,000,000 $ 40,000,000

based on historical forecast accuracy and updated weather projections. The projected retail load for FY 2024-25 was revised to 5.5 million MWh. The retail load in the forecasted years assumes minor (0.5%) annual growth due to stabilizing customer base post 2025 enrollment of the City of Atascadero and County of San Luis Obispo. Staff will continue to oversee the performance of the long-term load forecast and will continue to implement tools to develop scenario planning for long-term forecasting.

Other income, primarily comprised of investment revenue, is estimated at $19.0 million, a $11.9 million (168%) variance from the adopted budget. The favorable variance is partially due to higher-than-anticipated interest and investment earnings and settlement fund receipts. The forecasted years of FY 2025-26 and FY 2026-27 assume continued interest and investment earnings from the agency’s active treasury management and minor rental income from tenants in the San Luis Obispo office.

Reserve Targets
3CE is working towards meeting its reserve targets set in the Financial Policies adopted by the Policy Board. Reserves are projected at $254.5 million in the current year, meeting 73% of Financial Policy targets. Projected lower expenditures in the next two years will help close the remaining reserve gap. 3CE will continue to monitor the forecast to actual to ensure that reserve targets are met. Maintaining robust reserves provides financial stability amid potential PCIA and market fluctuations, helps sustain a competitive rate structure that minimizes customer attrition, and supports a strong credit rating, reinforcing 3CE’s long-term financial resilience.

FISCAL IMPACT:

The Mid-Year Budget Forecast estimates total revenue of $679.9 million, a 10% lower revenue variance from budget, and $642.8 million in total expenditures, equating to a 12% lower-than-budget variance, while maintaining growth in net position of $39.8 million, while withdrawing $2.8 million from the Capital Infrastructure Reserve for capital expenditures related to capital acquisition and improvements.

Because the Forecast is a mid-year estimation, unforeseen variables could decrease or increase the net operating results in the coming months. These variables could include energy market volatility, especially in the summer months, higher-than-estimated RA expenditures, lower retail load, and unforeseen regulatory compliance impacts.

CONCLUSION:

The FY 2024-25 Mid-Year Budget Forecast reflects 3CE’s continued focus on prudent financial stewardship and long-term planning. The Audit and Finance Committee and Policy Board will receive the Mid-Year Budget Forecast at their May 21, 2025, and June 18, 2025 meetings, respectively.

ATTACHMENT(S):

None.