Policy Board of Directors
June 18, 2025
Consent Calendar
1. Approve minutes from the March 19, 2025, meeting of the Policy Board
2. Adopt Resolution No. PB-2025-03 approving the FY 2025-26 Financial Policies
3. Adopt Resolution No. PB-2025-04 delegating authority to the Executive Committee to: (1) approve Capital Improvement Projects in an amount not to exceed $5,000,000, and (2) authorize the CEO to enter agreements to effectuate the projects
4. Accept FY 2023-24 Energy Programs Portfolio Evaluation report
5. Financial report for the period October 1, 2024, through March 31, 2025
6. Investment performance report for the period of October 1, 2024, through March 21, 2025
7. Energy Programs Update
8. Quarterly Regulatory and Legislative Update
CEO Report
Welcome Chief Operating Officer Byron Vosburg
3CE's Future Leaders Internship Program Begins Second Year Reliable Clean Power Procurement Program
Power Charge Indifference Adjustment (PCIA) Proceeding Update Large Load Advocacy
Community Advisory Council Report
ITEM 10
8. P8. Presentation on FY 2023-24 Energy Programs Portfolio Evaluation Draft Report Update on the FY 2024-25 Underserved Communities Outreach and Engagement Action Plan
2025 Update
Action Plan
1 Background
Underserved Communities
Action Plan Overview
Accomplishments
Next Steps
Discussion
2025 Action Plan Update
3 Underserved Communities
3CE considers communities to be underserved if they are under-represented in matters discussed by the agency and if their access to:
public investments
resources
education
and information about energy service is limited
5 Barriers to Access
Geographic Location
Language & Cultural Differences
Socio Economic Status
Health Risks
Position within the Digital Divide
Exposure to Environmental Hazards
6 Background
7 Action Plan Overview
Goal: Increase awareness about customer financial resources Goal: Increase awareness and access to energy programs
Goal: Collect customer feedback and implement changes to remove barriers and improve customer experience Goal: Launch reenrollment and customer awareness outreach campaign 8 Accomplishments
9 Goal: Increase awareness about customer financial resources Accomplishments
Bill Assistance Trifold
Customer Call Audits
Script Development
10 "Thank you for sharing! I've printed out the pamphlets and they are now accessible on our resource wall at our Department ☺️" - Caitlan Zamudio, Soledad Police Department
Goal: Increase awareness and access to energy programs
Accomplishments
Electrify Your Home Direct Install Pilot RFP
Exploring key partnerships
Improved program-related automated emails
Developing instructional video for program applicants
11 Goal: Collect customer feedback and improve customer experience Accomplishments
New internal processes for customer care
Adjustments to the Residential Battery rebate program
Continue to conduct our annual customer survey bi-lingually Implementation of the new CRM
12 Goal: Launch reenrollment and customer awareness outreach campaign Accomplishments
Farmworker -> sponsorships and PSAs
Social media
Infographics
Feature Spanish speakers
Spanish radio and media
13 Thank You!
16 ITEM 11
Approve an Electric Vehicle charger capital improvement project at 3CE’s office located at 2601 Porter Street in Soquel; and Authorize the Chief Executive Officer to execute necessary vendor contracts to implement the improvements at 2601 Porter Street in Soquel with a total budget not to exceed amount of $261,778
EV CHARGER ASSET PILOT
SOQUEL 3CE OFFICE
Need for EV Charging
Majority of GHG emissions in 3CE’s service area come from transportation California’s EV adoption continues to outpace public/shared EV charging infrastructure installation California EV Charging
Actual vs Targets*
*Based on CEC’s EV Infrastructure Assessment for number of public and shared charger ports, per AB2127 reporting requirements.
August 2024 Actual
2030 Target
2035 Target
152k chargers
1M chargers
2M chargers
February 2025 Actual
179k chargers
3CE’s EV Charger Asset Pilot Benefits and Scenarios
Pilot Testing:
Benefits of off-peak and super off-peak charging, including GHG reductions Usage of specific port types
Return-on-Investment (ROI) for charger installs based on rate and runtime EV adoption rate of employees and building tenants
EV Charger Asset Pilot
Public Charging
for
Low-Income Community Hubs
&
High Visibility Sites
Workplace Charging
during
More Affordable Hours with
More Renewable Energy
EV Charger Pilot Timelines
Santa Maria public site
(5 EV Chargers)
San Luis Obispo 3CE office
(3 EV Chargers)
2025
2024
2026
Design, Permit
& Contract
Analysis of Results
Soquel 3CE office
(3 EV Chargers)
Procurement & Construct
Design, Permit
& Contract
Procurement & Construct
Analysis of Results
Design, Permit
& Contract/License
PG&E Applications, Procurement & Construction
Analysis of Results
SLO office charging construction complete July 2025 Soquel office charging construction Q3 - Q4 2025
Santa Maria public charging application & construction Q3 2025 – Q2 2026
SLO Office EV Charger Pilot Project Update
The Project is on track to be completed by July 2025
On track to be within the board-approved NTE construction budget of $165,598 $68,400 in cost savings secured through San Luis Obispo APCD grant 50% of 3CE SLO employees purchased EVs since board approval *Sprinkler upgrade only if current system cannot meet EH2 requirements (0.40 GPM/SF)
3CE’s EV Charger Asset Pilot
Workplace Charging
2601 Porter Street, Soquel
PALM ST
MILL ST
SANTA ROSA ST
OSOS ST
5 parking spaces with 3 EV chargers
Level 2 charging, allowing for EV charge in approximately 3 to 6 hours Connectors for both J1772 and NACS
EV charger software consistent with 3CE’s San Luis Obispo site
Pilot Project Overview (cont’d) – 2601 Porter St. Soquel $177k base construction cost includes civil work, electrical wiring, and charger installs Additional $52k of undergrounding and civil work for remaining office parking spaces Reduce cost by utilizing existing 400 Amps panel, routing conduit along wall, and applying for grants
Recommendation
Approve an Electric Vehicle charger capital improvement project at 3CE’s office located at 2601 Porter Street in Soquel; and Authorize the Chief Executive Officer to execute necessary vendor contracts to implement the improvements at 2601 Porter Street in Soquel with a total budget not to exceed $261,778.
ITEM 12
Presentation on the FY 2024-25 Mid-Year Budget Forecast
Start of the Budget Development Process
27 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
28 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 29 The Mid-Year Budget Forecast - Summary
FY 2024-25 estimate: lower operating costs largely due to lower COE (12%), offset by lower than projected operating revenue (10%) 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 30 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 31 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 32 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
33 Key Forecast Risks and Strategic Uncertainties
The Forecast is a point-in-time tool to support budget planning, but is subject to evolving conditions Several external risks may impact actual results compared to forecasted expectations:
RA and REC (energy attributes) market volatility
Prices may rise sharply as compliance deadlines near
PPA Project Delays
Delays in timelines could impact supply planning and hedging Federal Policy Shifts
Potential changes to renewable energy incentives could affect procurement costs PCIA Regulation Uncertainty
Ongoing CPUC proceedings may significantly affect customer cost burdens 34 35
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
FY 2025-26 budget development continues
CEO meets with Officers to discuss budget requests
Continual refinement of next year’s COE and other operating costs Monitoring impacts of PCIA and IOU bundled rates to competitiveness 36 Questions
37 Supplemental Slide on Reserves
38 Supplemental Slide on Reserves
39 Supplemental Slide on Reserves + Forecast
40 Cost of Energy by Type per $/MWh
41 Historical and Forecast - COE
42 Total COE as % of Energy Cost Type
43