Operations Board of Directors
May 14, 2025
Consent Calendar
Approve the minutes from the April 9, 2025, meeting of the Operations Board Authorize the CEO to a) amend the Amended and Restated Renewable Power Purchase and Sale Agreement with SunZia Wind PowerCo LLC, to adjust nameplate capacity of the capacity, with no change to the total not-to exceed amount; and b) execute up to two future administrative amendments, subject to approval by the General Counsel, that do not change the total not-to-exceed amount Adopt Resolution No. OB-2025-01 Establishing a Claims Procedure Pursuant to Government Code Section 93, consistent with Policy Board approval of Resolution No. PB-2025-01 Approve and authorize the CEO to execute Task Order 2 with The Energy Authority (TEA) for $35,000 for the Preparation of the Integrated Resource Plan (IRP) Load Forecast in Compliance with California Public Utilities Commission's (CPUC) IRP Program
Consent Calendar Continued
Update on 3CE's Energy Programs
Regulatory Update
Financial report for the period of October 1, 2024 though February 28, 2025
CEO Report
Future Leaders Internship Program
CalCCA Annual Conference
Regulatory Update - Reliable Clean Power Procurement Program Legislative Update
ITEM 8
8. P8. Presentation on FY 2023-24 Energy Programs Portfolio Evaluation Draft Report Presentation on FY 2023-24 Energy Programs Portfolio Evaluation Draft Report
FY 2023-24 Energy ProgramsPortfolio Evaluation Draft
3CE Operations Board
Christopher Cook, PEDirector of Energy Programs May 14, 2025
Key Accomplishments
Implemented enhanced Customer Relationship Management System 3x more E-bus purchase enabled
Launched new Residential Battery Rebate Program
Over 1,800 applications funded
12% increase in distributed incentives and support
36% of funding distributed to equity projects ($3.9M)
$11M
$9M
$2M
$1M
Member Agency Engagement
$3.4k
$91k
$1.3M
$1.8M
15% more Member Agencies engaged in fleet planning & electrification
Approach & Methodology
Income-qualified customers
Title 1 schools
Low-income communities
Affordable housing projects
Small businesses
$3.9 million (36% of funding) distributed to Equity Projects Gas Passenger Vehicles (EPA)
Diesel E-buses (US DOE)
Natural Gas Water Heaters (NBI)
Diesel Ag Equipment (CARB)
Load reduction (Texture)
Over 3,758 MT CO2e reducedOver 90 kWh daily peak load reduction Community Engagement
Customer Service & Education
Marketing & Communications
59+ events & presentations$210k dedicated to Programs
EquityProjects
Emissions &
Load Reduction
Communications & Outreach
Approach & Methodology
Program ParticipationWhere are 3CE’s incentives being distributed? Program PerformanceIs the program being utilized as predicted by FY plan? Program ImpactIs the program making a positive contribution to the 3CE community? Internal ResourcesAre 3CE resources being used effectively? Evaluation Criteria
We serve our central coast by providing reliable, affordable, clean electricity and electrification programs to reduce greenhouse gas emissions and strengthen our local economy.
FY 2023-24 Energy Programs
$11 million in incentives & support across 11 programs $1.8 million increase from FY 2022-23 Transportation Electrification
Electrify Your Ride
E-bus Program
Plan, Charge, Electrify Your Fleet
Transportation Grants
Building Electrification
Electrify Your Home
New Construction Electrification Program
Reach Codes
Agricultural Electrification
Ag Electrification Program
Load Management / Demand Response
Residential Battery Rebate Program
Electrify
Your Ride
Residential
Commercial
E-Bus
School Districts
Transportation Agencies
Plan Your
Fleet
Member
Agencies
Electrify
Your Fleet
Member Agencies
Charge
Your Fleet
Member
Agencies
1,063 EVs
699 EV Chargers
35% Income-Qualified
18 E-Buses
10 Equity Projects
9 Member Agencies
54 L2 Chargers
6 DCFCs
1 Public Access
44 EVs
1 Equity Project
Transportation Electrification
Electrify
Your Home
Developers
Residential
New Construction Electrification
Residential
Reach Codes
Member Agencies
459 Units
2 Farmworker Projects
4 Counties
297 Rebates
17 Income-Based Apps
5 Multifamily Apps
4 Member Agencies
Building
Electrification
Electrify
Your Home
Ag Electrification
Commercial/Ag
18 Projects
0 DCFC EV Project
50% to Small Businesses
Agricultural Electrification
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!
SuperBee Rescue
Santa Barbara County
Load Management
Battery Rebate
Residential
Launch Program
Daily load shifted through RBRP program since launch, FY 2023-24
FY 2023-24 Accomplishments
1,800 unique applications across 5 counties
9 Member Agencies engaged in Plan Your Fleet
Program Participation
Program Performance
Program
Impact
Internal
Resources
3 programs offering Technical Assistance
25 days on average to receive a rebate
73% of incentive budget utilized
4 programs exceeded budget expectations
36% budget to equity projects
$52 million+ enabled in transportation electrification purchases
Thank You& Questions
“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
“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
“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
ITEM 9
Presentation on the FY 2024-25 Mid-Year Budget Forecast
FY 2024-25 Mid-Year Budget Forecast
Start of the Budget Development Process
20 The Mid-Year Budget Forecast
This Forecast provides a mid-year estimate and projections for the next two fiscal years FY 2024-25
FY 2025-26
FY 2026-27
21 Overview of the FY 2024-25 Adopted Budget
Appropriations - $730.3M
Revenue - $770.3M
Additions to reserves - $40M
One cost-based rate adjustment in the year to meet the higher cost of energy - January 1, 2025 Mid-Year Update
One rate adjustment due to changes in load forecast and competitiveness - April 1, 2025 22 The Mid-Year Budget Forecast - Summary
FY 2024-25 is seeing lower than expected operating costs largely due to lower COE, offset by lower than projected operating revenue The forecasted years project:
drops in the cost of energy largely from lower energy attributes costs personnel, contracted services, and energy programs assume minor increases The forecast projects additions to reserves based on the current three-year plan to reach reserve targets 23 Forecast – Cost of Energy
Mid-Year Forecast:
a $65.2 million (10%) favorable variance vs budget
Higher RA costs partially offset by lower energy costs and greatly offset by lower REC costs to meet RPS requirements Forecasted Years:
Minor increases in the cost of energy are offset by a drop in projected RA costs as new projects come online and market prices drop from a high in past two years Variables that could impact COE projections in the outlying years include delays in PPAs, increased market prices for energy and energy attributes, and RA under the Slice-of-Day paradigm 24 Forecast – Non-Energy Operating Costs
Mid-Year Forecast:
projected at $42.7 million, a 34% positive variance vs budget Personnel vacancies, lower professional services, less energy program expenditures, and lower capital asset acquisition costs Forecasted Years:
assume all positions are filled, 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 25 Forecast – Revenue
Mid-Year Forecast:
a $73.2 million (10%) unfavorable variance vs budget
Lower-than-anticipated load is the primary factor for the variance in electric generation revenue Load estimates changed with the April 1 rate adjustment, staff continues assessing the assumptions in the forecast Forecasted Years:
The annual retail load expected to increase slightly (0.5%) due to a stabilizing customer base post 2025 enrollment Assumes electric rate revenue that meets operating costs and additions to reserves Non-operating revenue expected to remain steady
26 27
Conclusion
FY 2024-25 is estimated to end the year with an increase in net position of $39.8 million, aligning with the goal to add $40 million to reserves Management will continue to monitor the financial operating results and variables that can impact net operating results such market volatility, energy attribute costs, retail load, and unforeseen regulatory compliance impacts
Next Steps
The Forecast presented to:
Audit & Finance Committee (May 21)
Policy Board (June 18)
FY 2025-26 budget development continues
Baseline and augmentation budget requests due in June
Continual refinement of next year’s COE and other operating costs 28 Questions
29 Supplemental Slide on Reserves
30 Supplemental Slide on Reserves + Forecast
31