Agenda packet — Central Coast Community Energy (3CE) Policy Board, September 18, 2025 (part 1 of 2)

Policy Board of Directors
September 18, 2025
9:00 AM
Hotel San Luis Obispo
877 Palm Street
Seven Sisters Ballroom
San Luis Obispo, CA 93401
If you have anything that you wish to be distributed to the Board, please provide 15 copies to a member of 3CE staff or the Board Clerk, who will distribute the information to the Board members and staff.

The public may comment on the consent agenda and matters not listed on the agenda but within the Board's jurisdiction at the opening of the meeting. The Board may not take action at this meeting on any item not listed on the agenda other than to refer the matter to staff or set it for a future meeting. The public may comment on a specific item listed on this agenda when the Board considers that item.

Speakers are limited to 3 minutes each.

If you choose not to attend the 3CE Operations Board of Directors meeting but wish to make a comment on a specific agenda item, you may please submit your comment as set out below. The timing of public comment shall be at the discretion of the Chair. Options for public comment are as follows:
a. To have your comments distributed to the Board prior to the meeting submit your comment via email by 5:00 p.m. on the Tuesday before the meeting. Please submit your comment to the Clerk of the Board at [email protected]. To assist the Clerk in identifying the agenda item relating to your public comment please indicate in the Subject Line, the meeting body (i.e. Operations Board of Directors Agenda) and item number (i.e. Item No. 3).

Your comment will be placed into the record at the Board meeting.

In addition, members of the public may request and receive copies without undue delay of any documents that are distributed to the Board, unless there is a specific exemption under the Public Records Act that prevents the disclosure of the record. (Cal. Gov’t Code Section 54957.5) In compliance with Government Code Section 54957.5, non-exempt writings that are distributed to a majority or all of the Board in advance of a meeting and that relate to an agenda item will be made available at 3CE’s offices located at 70 Garden Court, Suite 300, Monterey, CA 93940 during normal business hours and are also available on the 3CE website located at: https://3cenergy.org/meetings-agendas/ Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact Heather Vowell, Board Clerk, at 831-641-7216 or [email protected]. Requests should be made as soon as possible but at least 72 hours prior to the scheduled meeting.

DISCLOSURE OF CAMPAIGN CONTRIBUTIONS: Pursuant to Government Code section 84308, members of the Board are disqualified and not able to participate in any agenda item involving contracts (other than competitively bid, labor, or personal employment contracts), franchises, discretionary land use permits and other entitlements if the Board member received more than $250 in campaign contributions from the applicant or contractor, an agent of the applicant or contractor, or any financially interested participant who actively supports or opposes the decision on the agenda item since January 1, 2023.

Members of the Board who have received, and applicants, contractors or their agents who have made, campaign contributions totaling more than $250 to a Board member during the proceeding or for 12 months after a final decision is rendered in that proceeding, are required to disclose that fact for the official record of the subject proceeding. Disclosures must include the amount of the campaign contribution and identify the recipient Board member and may be made either in writing to the Clerk of the Board prior to the subject hearing or by verbal disclosure at the time of the hearing.

Welcome & Roll Call
Corrections or Additions
The Clerk will announce agenda corrections or proposed additions of emergency, urgency, or continued items, which will be acted on by the Board as provided in Section 54954.2 of the California Government Code.

Public Comment on Matters Not Listed on the Agenda
The public may provide comments on any item within the Board's jurisdiction but not on the Agenda. The Board may not take action at this meeting on any item not listed on the Agenda other than to refer the matter to staff or set if for a future meeting. Speakers are limited to 3 minutes each.

CONSENT CALENDAR

1. Approve minutes from the June 18, 2025, meeting of the Policy Board of Directors

2. Accept the Community Advisory Selection Committees' nominees and appoint John Freeman, Jeff Riley, and Ivor John to each serve a three (3) year term on 3CE's Community Advisory Council

3. Approve the 3CE Community Advisory Council's ("CAC") FY 2025-26 Workplan and Adopt Resolution No. PB-2025- 05 Establishing a Regular Meeting Schedule for the CAC

4. Renew Delegation of Investment Authority to the Treasurer

5. Update on 3CE's Energy Programs

6. Regulatory and Legislative Quarterly Update

7. Financial Report for the period of October 1, 2024, through June 30, 2025

8. Investment Performance Report for the period of October 1, 2024, through June 30, 2025

REGULAR AGENDA

9. CEO Report
a. Community Advisory Council Report
b. Statewide Load Management Standards
c. California Climate Credit
d. Bioenergy Market Adjusting Tariff Update
e. End of Legislation Session Report

10. Adopt Resolution No. PB-2025-06 approving the Fiscal Year 2025-26 Recommended Budget Board member reports and comments
Adjournment

Policy Board of Directors
June 18, 2025
Regular Meeting
1:30PM
Central Coast Community Energy
70 Garden Court,
Suite 300
Monterey, CA 93940
County of Santa Cruz
701 Ocean Street,
Fifth Floor Redwood Room
Santa Cruz, CA 95060
City of Scotts Valley
City Hall
1 Civic Center Dr
Scotts Valley, CA 95066
County of Monterey
168 West Alisal St,
3rd Floor
Salinas, CA 93901
City of Salinas
City Hall
200 Lincoln Ave,
CM Conference Room
Salinas, CA 93901
City of Greenfield
108 El Camino Real
Greenfield, CA 93927
County of San Luis Obispo
Katcho Achadjian
Government Center
1055 Monterey Street, Fourth Floor
BOS Conference Room
San Luis Obispo, CA 93408
County of Santa Barbara
County Administration Building
105 East Anapamu Street,
Fourth Floor
Santa Barbara, CA 93101
Garden Grove
11999 Harbor Blvd
Garden Grove, CA 92840
Visalia
Visalia Marriott at the Convention
Center 300 S Court St
Visalia, CA 93291

MINUTES
The meeting was called to order at 1:30 PM with 14 members attending from 10 noticed locations and a quorum established.

Director’s Present: Headquarters: Chair Keeley
County of Santa Cruz: Martinez
City of Scotts Valley: Timm
County of Monterey: Daniels
City of Salinas: Barajas
City of Greenfield: White
County of San Luis Obispo: Bourbeau, Guthrie (arrived at 1:44pm), Wixom (arrived at 1:44pm), Paulding
County of Santa Barbara: Hartmann, Reyes- Martin, Silva Garden Grove: Dutra
Visalia: Delgado
Directors Absent: Curro, Patino, Resendiz

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Chair called for Corrections or Additions to the agenda.

Clerk announced that there were no corrections or additions.

CONSENT CALENDAR
Chair called for public comment period on the Consent Calendar.

The following individual(s) addressed the Board.
 Becky Steinbruner
The Chair closed the public comment period.

MOTION: Moved by Director Dutra, seconded by Director Williamson to approve the consent calendar as submitted.

ACTION: Motion carried with a roll call vote: 15/0/3/1
AYES: Barajas, Bourbeau, Daniels, Delgado, Dutra, Guthrie, Hartmann, Martinez, Reyes-Martin, Silva, Timm, White, Williamson, Wixom, Chair Keeley
NOES: None
ABSENT: Curro, Patino, Resendiz
ABSTAIN: Paulding

1. Approved minutes from the March 19, 2025 meeting of the Policy Board

2. Adopted Resolution No. PB-2025-03 approving the FY 2025-26 Financial Policies

3. Adopted 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. Accepted 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
Chair called for public comment period on items not listed on the agenda The following individual(s) addressed the Board.
 Becky Steinbruner
 Brett Garrett
The Chair closed the public comment period.

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REGULAR AGENDA

9. CEO Report
a. Welcome Chief Operating Officer Byron Vosburg
b. 3CE's Future Leaders Internship Program Begins Second Year c. Reliable Clean Power Procurement Program
d. Power Charge Indifference Adjustment (PCIA) Proceeding Update e. Large Load Advocacy
f. Community Advisory Council Report
Chair opened public comment period.

The following individual(s) addressed the Board.
 Becky Steinbruner
Chair closed public comment period.

ACTION: Discussion item; no action required.

10. Updated on the FY 2024-25 Underserved Communities Outreach and Engagement Action Plan Chair opened public comment period.

The following individual(s) addressed the Board.
 Becky Steinbruner
 Brett Garrett
Chair closed public comment period.

ACTION: Discussion item; no action required.

11. a. Approved an Electric Vehicle charger capital improvement project at 3CE’s office located at 2601 Porter Street in Soquel; and b. Authorized 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
Chair opened public comment period.

The following individual(s) addressed the Board.
 Becky Steinbruner
Chair closed public comment period.

MOTION: Moved by Director Williams, seconded by Chair Keeley to approve ACTION: Motion carried with a roll call vote: 16/0/3
AYES: Barajas, Bourbeau, Daniels, Delgado, Dutra, Guthrie, Hartmann, Martinez, Reyes-Martin, Silva, Timm, White, Williamson, Wixom, Paulding, Chair Keeley
NOES: None

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ABSENT: Curro, Patino, Resendiz

12. Presentation on the FY 2024-25 Mid-Year Budget Forecast Chair opened public comment period.

The following individual(s) addressed the Board.
 Becky Steinbruner
Chair closed public comment period.

ACTION: Discussion item; no action required.

Adjourned at 3:20PM

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Staff Report Item 2
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Catherine Stedman, Chief Communications Officer SUBJECT: Accept the Community Advisory Selection Committees’ nominees and appoint John Freeman, Jeff Riley, and Ivor John to each serve a three (3) year term on 3CE’s Community Advisory Council
DATE: September 18, 2025
RECOMMENDATION:

Accept the Community Advisory Council Selection Committees’’ (the “Selection Committees”) nominations and appoint the following individuals to the Community Advisory Council (“CAC”), each for a three-year term.
 John Freeman (San Benito County) to an initial term ending September 30, 2028.  Jeff Riley (San Luis Obispo County) to an initial term ending September 30, 2028.  Ivor John (Santa Barbar County) to an initial term ending September 30, 2028.

BACKGROUND:

The CAC is a 15-member standing committee comprised of customers and stakeholders from Central Coast Community Energy’s service area. The CAC provides feedback on staff proposals, recommendations, and policies. As provided for in Article VII, Section 2 of the Central Coast Community Energy Operating Rules and Procedures (the “Operating Rules”), the Selection Committee shall submit nominations from a list of applicants of citizens that reside or work within the agency’s service area to the full Policy Board for its consideration and appointment.

Chair Keeley appointed separate Selection Committees for each county with a CAC vacancy. The appointed Selection Committees were comprised of San Benito, San Luis Obispo, and Santa Barbara County Policy Board members in accordance with previous practice.

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DISCUSSION/ANALYSIS:

Staff targeted outreach to communities throughout San Benito, San Luis Obispo, and Santa Barbara counties, including a diverse network of stakeholders, including member agencies, key chambers, business organizations, and community groups representing disadvantaged and underserved communities. The Selection Committees reviewed submitted materials and nominates the following candidates:
 John Freeman - An environmental consultant and experienced public official who has served on multiple boards including 3CE's Policy Board (2017-2020, 2022-2024) and AMBAG. He has extensive waste management and water treatment expertise spanning 40+ years, plus significant experience in municipal governance.
 Jeff Riley - A renewable energy sales professional and public affairs specialist with over $7.8M in clean energy sales and 20 years of government/advocacy experience. He currently works as an Energy Analyst at Solarponics and has advanced clean energy legislation at state and federal levels.
 Ivor John, PhD - A retired environmental consultant with 40+ years of experience in greenhouse gas emissions verification and energy sector analysis. He has extensive board experience including leadership roles with the Community Environmental Council and faith-based organizations.

All three candidates demonstrate relevant professional backgrounds and community engagement that align with 3CE's goals of maximizing greenhouse gas reduction, reducing customer costs, and investing in local energy projects.

FISCAL IMPACT:

There is no fiscal impact associated with this recommendation.

CONCLUSION:

The Policy Board’s appointment of John Freeman, Jeff Riley, and Ivor John will increase community representation on the CAC.

ATTACHMENT(S):

1. Community Advisory Council Candidate Application – San Benito County

2. Community Advisory Council Candidate– San Luis Obispo County

3. Community Advisory Council Candidate Applications – Santa Barbara County

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Central Coast Community Energy Community Advisory Council Application Central Coast Community Energy (3CE) seeks committed applicants for its volunteer Community Advisory Council (CAC). The CAC serves as an advisory body to 3CE’s Policy and Operations Boards and CAC members serve as important connections to the diverse communities 3CE serves.

The key goals of 3CE, as outlined in the Joint Powers Agreement, are:
 Maximize greenhouse gas reduction;
 Stabilize and reduce customer rates and costs; and
 Invest in local energy projects and programs.
3CE is soliciting CAC applicants to fill open seats on the council through the 3CE website, allied organizations, city and county partners, and others. The Authority’s staff shall accept and solicit nominations from citizens who reside or work within the Authority’s territory to become a member of the CAC. A list of all CAC member applicants by geography, skills and association, along with copies of all completed applications, shall be provided to an ad hoc subcommittee of the Policy Board comprised of the Policy Board’s members that represent each county within the area where the Authority is qualified to do business. The selection committee will present their recommendations to the Policy Board for their approval. Please note, this application is a public document and will be disclosed upon request.

Please return this application via email to [email protected] or by mail to:

Central Coast Community Energy
c/o Heather Vowell, Clerk of the Board
70 Garden Court, Suite 300
Monterey, CA 93940
If you have any questions, please contact [email protected]

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Your Information
Name:

Residence Address:

Email Address:

Primary Phone Number:

Alternate Phone Number (optional):

Occupation, or previous occupation if retired, or attach resume.

Employers, or previous employers if retired, or attach resume.

Resumes and letters of recommendation may be submitted as optional supplemental materials.

PO Box 1003 San Juan Bautista, CA 95045 [email protected] 831-236-7385 Environmental Consultant See attached Resume John Freeman

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Qualifications
Candidates must reside or work in 3CE’s service area and their city or county must be a JPA member agency.

Ideally, candidates will be business leaders, energy experts, community leaders and/or sustainability champions and will have a reasonable understanding of, or interest in, the energy business. 3CE seeks broad representation inclusive of the diverse people and communities of Monterey, Santa Cruz, San Benito, San Luis Obispo and Santa Barbara Counties. Applicants from all ethnicities, genders, sexual orientations, ages, and socio-economic backgrounds are encouraged to apply.

Experience and Expertise
Please limit responses to 300 words per question.

1. Please describe your experiences or involvement in your local community organizations.

2. Please describe your experience or involvement with local business organizations.

I have either been elected or appointed to following boards and commissions, San Juan Bautista City Council, Integrated Waste Management Commission of San Benito County, Associate of Monterey Bay Area Governments, Central Coast Community Power San Benito County Water District, and Water Resources Board of San Benito County. I have served as President of many of those commissions, AMBAG, Integrated Waste Management, and Water Resources Board. At all of the above organizations I helped staff agendisize meetings and implement the board goals. I have enjoyed my time with these boards and I am proud of the work that was accomplished while I was on those boards. I am currently President of the Board of "Balanced Access," an ISP devoted to improving the digital divide in both San Benito County and Monterey County. I was a founding member of the San Juan Bautista Strategic Planning Committee from 2021 to 2016.

I am an active member of the San Benito Business Council. I was president of the Integrated Waste Management Commission from 2020 to 2024. I worked closely with our trash hauler and landfill operator. Both are private companies whose relationship with the county is defined by contract. Through staff we developed long-term relationships that made recycling efforts for our citizens simpler and more effective in meeting state mandated diversion rates.

I also worked on developing additional broadband resources for our county. I actively aided in bringing two additional ISP's to San Benito County. Now citizens have more choices in Internet providers, creating lower prices and freedom from predatory pricing from incumbent ISP's. I am currently the president of Balanced Access, a non-profit organization dedicated to mitigating the digital divide in San Benito and Monterey Counties. We have started by subsidizing Internet access to farm-worker housing recently built in San Benito County.

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3. Please describe your experience in related energy, energy efficiency, transportation,

4. Please describe your experience participating in or being a member of an industry or trade association as it relates to 3CE’s mission to implement energy programs that maximize greenhouse gas reduction, reduce customer energy costs, and create local energy projects. environmental and/or other related fields.

My working life has been in the environmental field keeping our ecosystem clean and energy efficient. Since the early 1980's, I have participated in the power/energy industry as a Water Treatment Chemist and Service Technician for Calgon Corporation and Ecolab Water Services. Many of my clients were co-generation plants in the Sierra-Nevada foothills. My job was make sure the boilers ran as efficiently as possible to generate electrical power. I worked closely with plant personnel, particularly management, to reach their efficiency goals. In the 21st century I started working at Romic Environmental Technologies, which was a full service environmental and recycling company.
(Questions 3 and 4 are somehow tied together to force the same answer in both of them in your formatting.)
My working life has been in the environmental field keeping our ecosystem clean and energy efficient. Since the early 1980's, I have participated in the power/energy industry as a Water Treatment Chemist and Service Technician for Calgon Corporation and Ecolab Water Services. Many of my clients were co-generation plants in the Sierra-Nevada foothills. My job was make sure the boilers ran as efficiently as possible to generate electrical power. I worked closely with plant personnel, particularly management, to reach their efficiency goals. In the 21st century I started working at Romic Environmental Technologies, which was a full service environmental and recycling company.
(Questions 3 and 4 are somehow tied together to force the same answer in both of them in your formatting.)

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Commitment and Expectations
The CAC currently meets on the fourth Wednesday of the month at 4:00 p.m. Members will be required to attend a minimum of 75% of CAC meetings. Physical attendance is preferred. However, on occasion if all Brown-Act requirements are met, attendance via phone or computer may be allowed. The CAC Chair or appointed delegate will report CAC activities at the Operations and Policy Board meetings.

CAC members will be expected to support the mission and vision of 3CE, and to align their advice with the long-term success of the agency. CAC is a Brown-Act compliant group and all meetings will be publicly noticed and open to the public in an accessible location. CAC will be subject to all applicable conflict of interest laws.

Please complete the following form, or download the word document, save it to your desktop, complete it and email to [email protected] along with any supporting documents.

Expression of Interest
Please limit responses to 300 words.

1. Please describe why you are interested in serving on the 3CE CAC, and what you would like to achieve.

2. Please describe your ability to make the commitment described above.

3. Please describe your experience serving on public committees or boards. Please include lessons learned, achievements and challenges.

Thank you for your interest in Central Coast Community Energy I have always been interested in 3CE, and its promise to be a local power company that delivers a better experience for its customers. I would like to see that 3CE receives the recognition it deserves from the communities it serves. To accomplish this, we must make sure more people what we do for them.

I have the skills to add to the discussions that the CAC board has about energy policies. I understand public outreach. I have worked on campaigns for recycling in San Benito County. I have the experience to know what is needed and what can be accomplished.

Please see my attached resume ifor my extensive experience on public boards and commissions. Lessons I have learned are many, one you must work with everybody that you can to gain the concenus needed to move a intuitive along. Two do ever give up and don't b e surprised if some directors move in a direction that will surprise you.

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Resume of John C. Freeman
P.O. Box 1003, San Juan Bautista, CA 95045
(831) 236-7385, [email protected]
Elected Offices
Policy Board Director San Benito County Water District 2024 to Present The board sets policies for water purchases for three jurisdictions and the agricultural users in San Benito County.

San Juan Bautista City Council. Includes a year as Vice Mayor. 2016 to 2024 I brought a new level of professionalism to the council and provided the impetus to solve the water issues that have plagued San Juan Bautista for over 30 years.

Integrated Waste Management Committee President from 2020 to 2024. This is a JPA for the three jurisdictions in San Benito County. I oversaw and helped implement policies relating to recycling and disposal of municipal waste.

President of the San Benito County Water Resources Board. 2016 to 2018 I aided in developing strategies for water policy and conversation for the county of San Benito.

Member of the Board of Directors of the Association of Monterey Bay Governments (AMBAG), - 2016 to 2024, the metropolitan planning organization for the tri-county area. I was selected to be on the five-member executive counsel from 2018 to 2024. I was elected Board President for 2022.-2023.

Member of the Central Coast Community Power Board of Directors, 2017 to 2020 and 2022 to 2024. 3CE is a community choice aggregator for the Central Coast area. I was selected to be on the Audit Committee for 3CE from 2018 to 2020 and 2022 to 2024
Member of the Intergovernmental Committee of San Benito County from 2016 to 2019, serving as President in 2019. I coordinated policies of the various jurisdictions, including the city of Hollister, the County of San Benito, and the local school districts.

Founding Member of San Juan Bautista Strategic Planning Committee from 2012 to 2016
• I researched issues important to the city, presenting them to the city council to convince them that a resolution or ordinance is needed to improve or clarify various important situations.

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Chairperson of the San Juan Bautista Strategic Planning Committee 2014 to 2016, where I directed the activities of the committee and made many recommendations to the city council.

Non-Political career
• Balanced Access President 2025, a non-profit dedicated to helping close the digital divide for students and families in San Benito and Monterey Counties. • Freeman Environment Consulting
August 2014 to Present
Provides consulting services on Hazardous Waste Management and Water Treatment to clients in the Bay Area.
• General Environmental Management, Inc.

District Account Manager, July 2010 to 2014
Developed sales in South Bay area from zero dollars to over $ 1,000,00 in two years time. Helped to open the Hayward 10-day Transfer Center for GEM. • Romic Environmental Technologies Incorporated
Romic Full Service Specialist, June 2001 to July 2010
➢ Romic's Sales Representative of the Year 2005
➢ Developed sales in all related market areas, including lab packing, industrial services, tank and plant decommissioning, fuel blending and water treatment.
➢ Trained new sales representatives in both sales skills and knowledge of the hazardous waste market.
➢ Ran Internal Water treatment plant.
• Ecolab Water Care, St. Paul, MN
Senior Water Care Specialist, June 1991 to April 2001
Duties and Accomplishments:
➢ Established a new sales territory in Central and Northern California for this company.
➢ Introduced bubble flotation units to Central California for the handling of hazardous and non-hazardous waste products.
➢ Developed programs for handling water and waste that move through the systems.
➢ Trained new water treatment service personnel.
➢ Developed sales from zero to $ 650,000 per year in five years. • Calgon Corporation, St. Louis, MO
Sales and Service Representative, April 1981 to June 1991 ➢ Developed sales territory from $ 100,000 to over $ 500,000 per year.

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➢ Attended several comprehensive seminars on water treatment. ➢ Developed problem solving and customer relations skills. ➢ Developed waste water treatment experience, using polymers and flocculants to solve hazardous waste problems.

Education:
• 40 hour HAZWOPER Course Romic Environmental Inc. 2004 including updates to 2009. 40 hour certificate awarded 2004. Also profiling and hazardous materials classification courses were taken at this time. • Water Treatment classes at Calgon College Training courses for Water Treatment chemists and technicians.
• Cal Poly Pomona State University, Pomona, CA
B.A. Political Science, graduated June 1976, Minor in Economics, GPA 3.5 Professional Organizations:

Member of the Bay Area Environmental Safety Group (BAESG). A professional organization that meets monthly to hold seminars on the issues facing Environmental Professionals in the Silicon Valley. A contributing member since 2004.

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Please return this application via email to [email protected] or by mail to:

Central Coast Community Energy
c/o Heather Vowell, Clerk of the Board
70 Garden Court, Suite 300
Monterey, CA 93940
If you have any questions, please contact [email protected]

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Your Information
Name:

Residence Address:

Email Address:

Primary Phone Number:

Alternate Phone Number (optional):

Occupation, or previous occupation if retired, or attach resume.

Employers, or previous employers if retired, or attach resume.

Resumes and letters of recommendation may be submitted as optional supplemental materials. 1468 Marbella Ln., Templeton CA. 93465 [email protected] 805-458-3395 773-551-4335 Energy Analyst, Solarponics Inc. Resume attached. Jeff Riley

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Qualifications
Candidates must reside or work in 3CE’s service area and their city or county must be a JPA member agency.

Experience and Expertise
Please limit responses to 300 words per question.

1. Please describe your experiences or involvement in your local community organizations.

2. Please describe your experience or involvement with local business organizations.

As an Energy Analyst at Solarponics, I actively engage with homeowners to address their energy needs and represent the company at various community events, including home improvement shows and fundraisers for local schools and nonprofits. I've also been involved in advocating for initiatives like the adoption of Central Coast Community Energy as part of the SLO Climate Coalition. Beyond my professional role, I participate in annual golf outings, school fundraisers, and church events. My previous career in public affairs, government, and political campaigns also provided extensive community involvement, including outreach and organizing for campaigns, mobilizing support for clean energy and environmental legislation, and managing constituent services and ward events for the City of Chicago.

My involvement with local business starts with my engagement with small commercial customers, such as wineries, restaurants, and dental offices, on their energy needs. In this capacity, I work with the business owner to design a system to meet their needs as help ensure they take advantage of incentives such as the federal tax credit and depreciation. I also network with local business organizations in my current role as an Energy Analyst at Solarponics where I frequently participate in business-focused events hosted by local chambers of commerce such as mixers, breakfast events, and roundtables. I also attend events for the local chapters of the American Institute of Architects, the Home Builders Association of the Central Coast, and the SLO County Builders Exchange as well as participating as a member of a local business networking group in Paso Robles.

As a public affairs professional, I worked with a number of leading clean energy business organizations such as the Environmental Defense Fund, Pew Environment, the Clean Grid Alliance/Wind on the Wires, and the Energy Foundation.

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3. Please describe your experience in related energy, energy efficiency, transportation,

As a renewable energy sales and public affairs professional, I have extensive experience with industry and trade associations that directly relates to 3CE's mission to maximize greenhouse gas reduction, reduce customer energy costs, and create local energy projects. In my current role at Solarponics, I extensively utilize several of 3CE's existing rebate programs for battery storage, heat pump water heaters, and electric vehicle chargers with homeowners, commercial customers, and industry associations. I have also advocated for pro-solar policies on behalf of the California Solar Storage Association (CALSSA) and educated trade groups like the American Institute of Architects and the SLO County Builders Exchange on clean energy and electrification products and programs. As President of Riley Public Affairs, I advanced the interests of national clean energy industry advocacy organizations with very similar missions to 3CE, including the Environmental Defense Fund, Clean Grid Alliance/Wind on the Wires, Pew Environment Group, and the Energy Foundation.

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Please complete the following form, or download the word document, save it to your desktop, complete it and email to [email protected] along with any supporting documents.

Expression of Interest
Please limit responses to 300 words.

1. Please describe why you are interested in serving on the 3CE CAC, and what you would like to achieve.

2. Please describe your ability to make the commitment described above.

3. Please describe your experience serving on public committees or boards. Please include lessons learned, achievements and challenges.

Thank you for your interest in Central Coast Community Energy I want to join the Central Coast Community Energy Community Advisory Council to advance clean energy. My experience confirms that accessible incentives drive adoption, aligning with 3CE's mission.

I'll advocate for programs that meet community needs, support local projects, and promote clean energy benefits.

I'm fully committed to actively participating in the Community Advisory Council, with consistent attendance and wholehearted support for 3CE's mission. My employer, Solarponics, and my family both fully back my dedication to advancing clean energy in our community.

I have spent the past six years as a member of the SLO Climate Coalition, working on the Uniting the Central Coast subcommittee.

Previously, I served in Oak Park Illinois on the CCA Citizen Advisory Committee, helping launch their program. These roles taught me the power of collaboration and evidence-based advocacy in achieving cleaner energy options for communities. Page 20 of 173
Jeff Riley
Renewable energy sales and public affairs professional with experience in customer and community engagement, clean energy sales and deployment, stakeholder engagement, advocacy, communications, and project management. Successfully advanced the clean energy goals of California Central Coast residents and businesses, as well as national corporations, clean energy organizations, and government. c. 773.551.4335
[email protected]
linkedin.com/jpriley13
@Riley_PA
 Sold over $7.8M+ in residential and commercial clean energy products and services.
 20 years of public affairs, stakeholder engagement, and government experience. Advanced the clean energy interests of companies such as Exelon Corporation and organizations such as the Environmental Defense Fund, Clean Grid Alliance, Pew Environment, and the Energy Foundation.
 Certified in sustainability management, photovoltaics and technology from leading clean power companies such as Tesla, SolarEdge, Enphase, LONGI, Jinko, Canadian Solar, and Trina Solar.

PROFESSIONAL EXPERIENCE
Energy Analyst, Solarponics Atascadero, CA, 2019 – Present • Manage extensive customer base with $7.8M+ in sales of solar, battery storage, and other clean energy products and services. • Serve as primary point of contact for customers through lifecycle of service including install, system design, engineering, grid interconnection, inspections, commissioning, and ongoing customer retention.
• Represent the company at events including public hearings, conferences, and community meetings.

President, Riley Public Affairs Oak Park, IL, 2008–2018 • Founded boutique public affairs firm focused on advancing renewable energy policy and legislation, including the American Clean Energy and Security Act, the Future Energy Jobs Act, Mercury and Air Toxins Standards, and Corporate Average Fuel Economy Standards.
• Specialized in coalition management, grassroots advocacy and communications with a track record of developing productive relationships with key stakeholders in government, private sector, nonprofit, and the community.

Chief of Staff, Legislative Liaison, Field Director Illinois, 1999 –2008 • Directed operations as Chief of Staff for the Chicago’s 42nd Ward, including staff management, constituent services, media relations, policy development, and ward events.
• Led outreach to elected officials as Legislative Liaison for the Office of Banks and Real Estate and the Toll Highway Authority. • Directed field operations for state and national campaigns including voter outreach, events, and Get-Out-The-Vote.

CAREER HIGHLIGHTS
Secured energy independence for
hundreds of Californians.

Managed a coalition of clean energy
professionals to help secure passage of
the American Clean Energy and Security
Act in Congress.

Led advocacy efforts for Pew
Environment in support of stronger fuel
economy standards with current
Secretary of Energy, Jennifer Granholm.

Spearheaded community relations for
the Illinois Toll Highway Authority’s ten-year, $5.3 billion Congestion Relief Plan.

KEY SKILLS
Excellent interpersonal, communication,
and stakeholder engagement skills.

Proficient with Microsoft Office,
Customer Relations Management
software, Computer-Aided Design and
solar design software such as Solargraf,
OpenSolar and Aurora.

Highly organized, collaborative team
player, and proven project manager.

EDUCATION & TRAINING
CA Department of Consumer Services
Home Improvement Salesperson, 2024
North American Board of Certified
Energy Practitioners
Photovoltaic Associate, 2018
University of Chicago, Graham School
Certificate in Leadership in Sustainability
Management, 2014
Southern Illinois University, Carbondale
Bachelor of Arts, Political Science, 1993 Page 21 of 173 Central Coast Clean Energy (3CE)
Applica5on to Serve – Community Advisory Commi<ee (CAC) Ivor John, PhD
July 7, 2025
Your Informa5on
Name – Ivor John
Residence Address – 855 Estrella Dr, Santa Barbara CA 93110 Email address – [email protected]
Primary Phone Number – 805-451-8162
Alternate Phone Number (opConal – N/A
OccupaCon, or previous occupaCon if reCred, or aFach resume – see a<ached resume Employers, or previous employers if reCred, or aFach resume – see a<ached resume Qualifica5ons
Noted.

Experience and Exper5se

1. Please describe your experiences or involvement in your local community organiza9ons.

I have lived in Santa Barbara for nearly 40 years and during this Cme, I have been involved with numerous local community organizaCons in many different capaciCes. Of parCcular importance is my long-Cme involvement with the Community Environmental Council (CEC) – as a Board member (2004-2010), as Board president 2006-2008, and currently on the Presidents’ Council.

During my Cme on the Board, the organizaCon developed “A New Energy DirecCon – A Blueprint for Santa Barbara County” (aka Fossil Free by ’33). This effort demanded ongoing dialogue with residents, businesses, and local government. Central to this involvement has been a personal and organizaConal commitment to reducing and eliminaCng Greenhouse Gas (GH) emissions.

In addiCon, I have been involved in leadership posiCons with faith communiCes for over 20 years. For the Unitarian Society of Santa Barbara (USSB), I have served on the Board of trustees, and as Board president. I have been acCvely involved with EcoFaith of SB and the Interfaith IniCaCve of SBC serving in leadership posiCons for both organizaCons. My personal interest in this work is to engage with our congregaCons on issues involving care for the Earth, especially with climate change.

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2. Please describe your experience or involvement with local business organiza9ons.

As noted, the CEC’s Fossil Free by ’33 Campaign required acCve involvement with the local business community, and it was met some degree of concern and resistance as the degree of change needed became apparent. This is to be expected and appreciated, as new and different energy service models are implemented.

As a professional environmental consultant, I have also engaged with the local business community on a number of high-profile energy project EIRs and policy and strategy documents developed for local government agencies in the Tri-CounCes. Most EIRs were developed for air polluCon miCgaCon projects, but I also led the EIR developed for the Guadalupe Dunes cleanup project, working closely with staff at the County of San Luis Obispo and the local business community involving the fossil fuel industry and the clean energy business community.

I have worked with many local businesses and government organizaCons developing GHG emission inventories. These businesses included uCliCes (SCE, PG&E, LADWP and others), and energy companies (both fossil-based and alternaCve energy). I performed this work for the County and the City of Santa Barbara, among others.

I have facilitated community dialogue through contenCous public processes following a fatal accident and a succession of safety excursions at two separate refineries in the Bay Area.

3. Please describe your experience related to energy, energy efficiency, transporta9on, environmental and/or related fields.

AFached, I am including a list of the clients I served over my career that were directly relevant to energy and transportaCon. Through my career, I gained exposure to the full spectrum of energy producCon, delivery and use throughout the region, the State and across the United States. Invariably, there was an emphasis on energy baseline analysis (expressed in terms of GHG emissions), and studies to assess clean energy alternaCves.

HighlighCng two examples, (1) During the ten years I worked with Xcel Energy in the mid-conCnent, they reduced their total GHG emissions by 50%, mostly by closing a number of coal power generaCng staCons and developing extensive wind energy in the region, and (2) Working with City of LA and the LADWP on a Climate AcCon Plan at a Cme when coal power was predominant (Navajo and Intermountain), and establishing a framework for transiConing from coal to renewables.

I have personal experience with solar (15 years), and alternaCve fuel vehicles including a Ford Escape hybrid, Nissan Leaf (BEV), two Toyota Mirais (hydrogen), and a RAV4 plugin hybrid. I recognize that not every customer can afford to pursue such choices but the experience is valuable to comment from a personal perspecCve on what’s possible and the available choices.

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4. Please describe your experience par9cipa9ng in or being a member of an industry or trade associa9on as it related to 3CE’s mission to implement energy programs that maximize greenhouse gas reduc9on, reduce customer energy costs, and create local energy projects.

Of parCcular relevance to this quesCon is the work I did with the California Climate AcCon Registry and The Climate Registry (TCR) during the Cme they were developing the protocols and standards for reporCng GHG emissions. This protocols were based the GHG ReporCng Protocols developed by the World Resources InsCtute (WRI) and the World Business Council for Sustainable Development (WBCSD). For TCR, I led the development the Electric Power Sector reporCng protocol. This included methodologies for esCmaCng emissions from electric power producCon, emissions from Transmission and DistribuCon, and a range of performance metrics.

This work was closely related to the State of California’s annual RPS and Power Source Disclosure reporCng requirements.

For four years, I served as Chair of GHG Advisory CommiFee for the American NaConal Standards InsCtute (ANSI) from 2012-2015. The commiFee included representaCon from a broad range of industries that were voluntarily reporCng GHG emissions. At the Cme, I was also serving as a Lead Verifier for emissions reported into the California Cap and Trade program.

Commitment and Expecta5ons
Noted and Accepted
Expression of Interest

1. Please describe why you are interested in serving on the 3CE CAC, and what you would like to achieve.
• To ensure conCnuous improvement of community engagement and community relaCons. EssenCal to 3CE success as it involves changes to the electrical energy mix, and changes to the way electricity is delivered and billed to customers (from singular IOU provider to blended model).
• To advocate for more proacCve communicaCons with customers. The blended service has created extraordinary challenges with billing transparency, and with a solar array the bills are even more confusing. Even the low peak Time of Use period has switched during this Cme! As a customer, I have received only limited informaCon about what to expect along the way. Providing honest feedback and on how customers feel about the 3CE service a is one of the main reasons I wish to serve.
• To monitor and comment on proposed incenCves to customers (business and residenCal). This is essenCal for helping ciCes and counCes achieve their climate goals.

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Customer behavior is now the most important factor in accomplishing climate goals, and 3CE electricity is integral to that.
• To comment and advise on complementary technologies and strategies that can support the essenCal baFery storage model. For example, to maintain awareness of resilience opportuniCes associated with the development of microgrids, and the use of hydrogen for long-term storage.
• Finally, as a climate professional, I am passionate about the central mission to reduce and eliminate GHG emissions from the energy mix as quickly as possible, and being engaged with 3CE is one of the most effecCve ways to make a difference personally.

2. Please describe your ability to make the commitment described above.

I am reCred from full Cme employment and have flexibility about how I allocate my Cme. This assignment would become a priority, and I would schedule Cme accordingly. AFendance by Zoom would be helpful given the distance from SB to Monterey, but either way will work, and I understand the value of in-person meeCngs.

3. Please describe your experience serving on public commiJees or boards. Please include lessons learned, achievement and challenges.

See comments above and aFached resume.

Lessons learned – how to facilitate effecCve meeCngs, and decision-making processes. The best meeCngs have a clear agenda and all members commit to thorough preparaCon. It’s one thing to develop a plan or a strategy, but implementaCon is essenCal and its hard work. RecruiCng qualified candidates willing to do the work is essenCal Achievements – contributed to many throughout my career including:
• AcCvely supporCng CEC’s Fossil Free by ’33 planning and subsequent implementaCon • Board and commiFee leadership with USSB, CEC, Interfaith IniCaCve, and ANSI as examples
• Developing and using TCR GHG emissions inventory protocols, emissions verificaCon • Successfully compleCng the Guadalupe Dunes Oil Field cleanup EIR • FacilitaCng successful community engagement with Bay Area refinery safety issues Challenges – for ongoing commiFees like 3CE’s CAC, maintaining moCvaCon and a sense of purpose can be a challenge. MeeCngs can become mundane and ineffecCve unless run effecCvely with a sense of purpose. Ensuring that all members contribute can be a challenge, especially when the commiFee has individuals who like to talk a lot. Dealing with conflicCng opinions can be a challenge, but mulCple opinions need to be solicited for the best outcome.

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Ivor John, PhD
855 Estrella Dr
Santa Barbara, CA 93110
(805) 451-8162
Summary
For over 40 years, Ivor has worked on a wide range of environmental, safety and risk management services for multiple sectors including oil and gas, chemicals and petrochemicals, power generation, utilities, pipeline operations, wastewater treatment, and more. He has assisted numerous companies and agencies with risk assessment and risk management projects and participated in many safety and environmental audits and assessments.

Most recently, Ivor worked as an auditor for several major energy companies and utilities (including ExxonMobil, Chevron, Shell, General Electric, and Xcel Energy). This work involved third party assessments of operational integrity management systems and greenhouse gas emissions globally.

During the last ten years, he has verified more than 500 million tonnes of GHG emissions. He has worked closely with environmental agencies in California and the United States.

Qualifications
Academic • PhD Physics of the Atmosphere, University of Wales, Aberystwyth, 1977 • BSc Physics with Meteorology, University of Reading U.K., 1972 Professional • American Institute of Chemical Engineers, 1996-2019 • American Meteorological Society, 1987-2019
• Fellow of the Royal Meteorological Society, 1968-present Professional experience
Oct 2019 – present Independent Advisor - Hydrogen
• Advising on investments in technologies and companies focused on hydrogen and fuel cells
• Innovative approaches to hydrogen production through electrolysis, thermal conversion and pyrolysis
• Optimization of hydrogen infrastructure development for light and heavy duty applications
• Use of hydrogen for grid storage and industrial scale Jun 2013 – May 2020 Lloyds Register of London (part-time) and Independent Consultant Energy Integrity Assurance
• Attestation and certification of operations integrity assurance for major energy companies
• Global Coordinating Lead Verifier of GHG emissions for Shell • Audit and assessment activities of executive, business and asset level management systems used in complex processing industries including oil and gas, petrochemicals, utilities and power generation

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Feb 2009 – Jun 2013 Lloyds Register Quality Assurance, Americas Sustainability, Inc.

General Manager, Santa Barbara, CA
• Lead Verifier, GHG emissions verifications; California ARB, The Climate Registry
• Consultant, Greenhouse Gas emissions inventories, protocol development, sustainability
• Business Development
Mar 1999 – Feb 2009 Ryerson, Master and Associates, Inc.

Principal/Owner, Santa Barbara, CA
• Greenhouse gas (GHG) emissions – power generation and energy sector • Air emissions work for conventional and unconventional fueled vehicles • Performance evaluation of USPS electric vehicle fleet (500 CR vehicles) • Electric and natural gas refueling infrastructure
• Risk analysis, safety studies, reliability assessments Mar 1991 – Feb 1999 Arthur D. Little Inc.

Senior Consultant, Santa Barbara, CA
• Risk analysis, safety studies, reliability assessments • Risk Management and Process Safety Management program development • Consequence modeling for accidental releases
• Environmental assessments and Environmental Impact Reviews for energy and infrastructure projects
• Environmental audits for government and commercial clients including DOE National Laboratories and oil and gas majors
• Due diligence audits for industrial asset transactions • Safety Culture assessment at petroleum and chemical processing facilities • Development of Operations Integrity management systems Sep 1988 – Feb 1991 Santa Barbara County Air Pollution Control District Senior Engineer, Santa Barbara, CA
• Technical Support Group
• Air Quality Dispersion Modeling
• Acute Release Consequence Modeling
• Emergency Planning and Response for Santa Barbara County 1978-79 and 1983-87 Oceanroutes, Ltd (a John Swire Company) Meteorologist, Aberdeen, Scotland
• Weather forecasting for North Sea Oil and Gas Operations • Meteorological and Oceanographic Studies for Design Engineering Sep 1979 – May 1983 British Aerospace
Instructor of Meteorology, Riyadh, Saudi Arabia
• Instructor of meteorology at the King Faisal Air Academy • Promoted to senior instructor
1977-78 University of Kent at Canterbury, UK
• Tutorial Fellow lecturing in Environmental Sciences Program

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Professional experience – example projects
• Designated auditor for Chevron, ExxonMobil and General Electric providing attestation services that provide assurance that corporate operations integrity management systems include all elements of the ISO 14001 environmental standard, and provide an equivalent level of environmental protection and emphasis on continual improvement. Audit activities are performed globally. • Project Manager and Lead Verifier for Shell Oil Company GHG Emissions Verification. Currently managing LRQA verification activities for Shell Oil Company in the United States and other Shell assets in the Americas. Successfully verified more than 15 million metric tons for CY2010 through the TCR Program, and currently verifying CY 2011 emissions for major facilities in United States, Canada and Argentina. Assets include production facilities in the Gulf of Mexico, refineries and petrochemicals manufacturing.
• Project Coordinator for California Central Coast hydrogen infrastructure readiness planning project.

Project includes Ventura, Santa Barbara and San Luis Obispo Counties and involves siting analysis for hydrogen refuelling stations and training for local planners and first responders. Coordinating with OEMs offering Fuel Cell Electric Vehicles for sale in California. Client was Santa Barbara Air Pollution Control District, and work was funded by the California Energy Commission. • Member of Advisory Committee for Rand Corporation evaluation project of the California Energy Commission investment program for vehicle technologies and fuels. • Project manager for a two-year Life Cycle Cost and Performance Evaluation Study, which RMA conducted for the U.S. Postal Service on their fleet of 500 battery-electric mail delivery vehicles. Led the evaluation of vehicle efficiency, battery performance, and operating costs against comparable gasoline, flex fuel (ethanol) and natural gas vehicles. The project involved collection of vehicle cost and performance data including purchase price, fuel use and price, costs for maintenance and training, infrastructure technology evaluation and costs. • Chaired the American National Standards Institute Accreditation Committee for Greenhouse Gas emissions (ISO 14064) and Energy Management (ISO 50001 and DOE Superior Energy Management).
• Verification of GHG Inventories for California Oil and Gas Producers. Lead Verifier for emissions inventory verifications for Occidental of Elk Hills, THUMBS of Long Beach, Tidelands, and Signal Hill Petroleum. These emission inventories included emissions from the combustion of associated gas, process emissions from venting and flaring, and fugitive emissions from oil and gas gathering lines and processing equipment.
• Lead Verifier for an independent verification of greenhouse gas emissions for El Paso Pipeline and El Paso Exploration and Production Group (E&P). The inventory was prepared under the provisions of the United States Energy Policy Act, Section 1605(b) as an annual report to the US Department of Energy (DOE). The primary protocol used for verification was the US DOE1605(b) Technical Guidelines Voluntary Reporting of Greenhouse Gases 1605(b) Program (January 2007). • Verification of Entity Level Greenhouse Gas Emission Inventories. Lead Verifier for more than 100 entity and facility-level verifications performed for the California Climate Action Registry, The Climate Registry (TCR) and the California Air Resources Board (CARB). Clients included electric power generators, municipal and investor-owned utilities (power and water), natural gas utilities, mining industry, academic institutions, healthcare, and government agencies.

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• Lead author of the TCR’s Electric Power Sector Protocol (2009), and he participated as an Expert Reviewer with the California Climate Action Registry for the development of the Power Utilities Protocol.
• Directed the preparation of complex Greenhouse Gas emission inventory for the City of Los Angeles.

Reviewed organizational structure, determined most favorable basis for reporting, and established organizational boundaries. Collected data from multiple sources including the internal council-controlled departments as wells as the proprietary departments (Los Angeles International Airport, Los Angeles Harbor Department, and the Los Angeles Department of Water and Power). Compiled a comprehensive database with all emission sources for Calendar Year 2004. Entered data into CARROT and provided input on the City’s Climate Action Plan and emission reduction measures. • Project manager for the preparation of a Greenhouse Gas emission inventory for the City of Santa Barbara. Provided assistance in collecting, reviewing and compiling the data needed to prepare the CY 2005 emission inventory from over 500 facilities, including a municipal airport, waterfront facility and harbor, wastewater treatment plant. Developed a flow chart to determine the basis for reporting for leased facilities with operating and financial leases. Prepared inventory report and entered data into CARROT.
• Project manager for a risk assessment prepared by Arthur D. Little for a refinery in the Los Angeles area to compare offsite risks associated Hydrogen Fluoride (HF) and Sulfuric Acid alkylation processes. The study involved a lifecycle analysis of catalyst manufacturing, transportation, use in alkylation and regeneration.
• Project manager for a Facility Siting study prepared for a southern California refinery. This project involved the identification of potential explosion, fire and toxic hazards from refinery process units and the evaluation of occupancy criteria and structural features for more than 50 buildings. The study included risk screening using semi-quantitative analysis methods and the use of a Geographic Information System to manage the database of buildings, process units and hazard scenarios and to generate maps of hazard contours.
• Project manager for a Safety Evaluation of the Tosco Avon refinery. This evaluation was conducted for Contra Costa Health Services following a fatal accident that occurred in February, 1999. The evaluation focused on safety management systems, human factors, and safety culture. Public participation was a key element of the assignment. Presented at more than ten public meetings over the course of the project, including three to the Contra Costa County Board of Supervisors. • Project manager for an assignment with BP Exploration (Alaska) to prepare an audit participant handbook and a series of protocols to be used for assessing the Operations Integrity and Assurance System (OIAS) at BPXA Assets and Departments. The manual and protocols focus on management systems.
• Project manager for a three-year contract which Arthur D. Little held with the South Coast Air Quality Management District (SCAQMD) in Los Angeles. Under this contract, Arthur D. Little provided support services for environmental review of air pollution control projects required by the SCAQMD. Principal contact with the District and he managed the following projects: (1) reviews of the Draft Environmental Impact Report prepared by two refineries in the Los Angeles area for Clean Fuels project modifications (2) a review of the Federal Implementation Plan (FIP) proposed by EPA for certain California air basins; and (3) preliminary work on an EIR for the District’s proposed RECLAIM program for Volatile Organic Compounds (VOCs).

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• Team member for a comprehensive audit of air pollution control programs at a major refinery in the U.S. Virgin Islands. This audit was requested by the owner to evaluate the degree of compliance with the emerging regulations pursuant to the 1990 Clean Air Act Amendments. The scope of the audit included Prevention of Significant Deterioration (PSD) together with the local permit program, Hazardous Air Pollutants, the Inspection and Maintenance (I&M) program for fugitive emissions, continuous emissions monitoring programs, and programs to reduce or eliminate ozone depleting substances.
• Team member for comprehensive environmental audits conducted at refineries in Kentucky and Minnesota. Responsible for leading the assessment of air pollution control systems and compliance with federal, state and local air regulations. Topical areas for these audits included Leak Detection and Repair programs (NSPS, NESHAP and HON), Prevention of Significant Deterioration (PSD), and Title V permitting.
• Project manager for PSM and RMP program development work with the Monterey Regional Water Pollution Control Agency. This work was required to ensure that the MRWPCA had the required PSM and RMP programs in place prior to startup of the new Salinas Valley Reclamation Project. The new project required increased use of chlorine and sulfur dioxide at the Regional Treatment Plant, and the construction of new facilities. Both PSM and RMPP programs were finalized prior to startup of the reclamation facility in May 1998.
• Process Safety Management (PSM) compliance audits conducted for oil and gas production facilities on the North Slope of Alaska. Areas of responsibility included Mechanical Integrity, Contractors, Incident Investigation, Management of Change and Process Hazards Analysis. • Air specialist for comprehensive environmental audits conducted by Arthur D. Little for the Department of Energy (DOE) Tiger Team assessments. Facilities audited were Morgantown Energy Technology Center (coal), Idaho National Lab (nuclear), the Solar Energy Research Institute (renewable energy), the Stanford Linear Accelerator Center (high energy physics), the Naval Petroleum Reserves (oil production), the FermiLab Accelerator (high energy physics). These audits included assessment of facility compliance with applicable regulations, and an evaluation of process equipment and emission control technologies. Also served as team member for environmental management systems audits conducted at Fernald Feed Materials Environmental Program, Argonne National Laboratory, Stanford Linear Accelerator Center, and Sandia National Laboratory.

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Training and Certifications
• Lead Assessor, Environmental Management Systems, ISO 14001 • Lead Verifier, Greenhouse Gas Emissions, ISO 14064-3, LRQA • Lead Verifier, Greenhouse Gas Emissions Verification, California ARB • Lead Verifier, Greenhouse Gas Emissions Verification, The Climate Registry • ExxonMobil – Operations Integrity Management Systems Auditor • Certified Consulting Meteorologist, American Meteorological Society Professional Experience – Clients
• Chevron (Environmental Management Systems)
• ExxonMobil (Environmental Management Systems)
• General Electric (Environmental Management Systems)
• Shell (Global GHG Emissions Inventories – 10 years)
• California Central Coast Tri-Counties APCDs (hydrogen readiness planning) • Rand Corporation (Advisory Committee for CEC Technology Investment Evaluation) • U.S. Postal Service (BEV Fleet of 500 vehicles)
• Chair of ANSI’s Accreditation Committees for GHGs and Energy Management • Verification of GHG Inventories for California Oil and Gas Producers (Occidental of Elk Hills, THUMBS of Long Beach, Tidelands, and Signal Hill Petroleum), El Paso Pipeline and El Paso Exploration and Production Group (E&P)
• Verification of GHG Inventories for 50+ electric utilities and power generators (ARB and TCR) • Lead author, GHG emissions reporting protocol prepared for the Electric Power Sector by TCR • GHG emission inventories for the City of Los Angeles (4 years) including Harbors and Airport) • First GHG emission inventory for the City of Santa Barbara • Risk assessment/risk management – refineries, chemical plants and water treatment • Safety Evaluation of the Tosco Avon Refinery (fatal accident, environmental justice) • BP Exploration and ARCO (Alaska North Slope) (Process Safety Management) • SCAQMD (environmental review of air pollution control projects and RECLAIM) • Hess Corporation (air pollution control audit, St Croix Refinery) • DOE (environmental audits at eight national labs, air specialist) Community Involvement and Professional Affiliations
• Community Environmental Council – past Board Chair
• ECOFaith Coalition of Santa Barbara and Interfaith Initiative – current Chair • Unitarian Society – past Board President
• Certified Consulting Meteorologist, American Meteorological Society • Chair of local AMS Chapter (Santa Barbara, Ventura)
• Fellow of Royal Meteorological Society
• American Institute of Chemical Engineers
• Opinion letters submitted to local press on issues of energy and climate change.

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Ivor John – Sample List of Clients (1987-2025)
Energy, Oil and Gas
• ExxonMobil, Chevron – corporate auditor, opera<ons integrity, global scope • Shell Interna<onal – corporate verifier, global inventory of GHG emissions • bp, Arco – safety management systems, Prudhoe Bay and Kuparak, Alaska • Occidental Elk Hills (DOE Naval Petroleum Reserve) – Environmental audit, GHG verifica<on
• Occidental Colombia – risk assessment/risk management oil and gas pipelines • Hess Virgin Islands, Ashland Oil Kentucky – air pollu<on environmental audits • Ultramar, Tesoro, Valero – safety and risk assessments • Petrobras, Rio de Janeiro – comprehensive training course, air pollu<on control technologies
• Unocal – Project Manager, Guadalupe Dunes Oil Field Remedia<on • El Paso Explora<on and Produc<on, GHG emissions
• State of Alaska – statewide hazardous materials inventory development • Husky Energy, Western Canada – opera<ons integrity audits U<li<es – electricity, investor owned and municipal
• Xcel Energy – GHG emissions, corporate and facility level verifica<ons (10 years, 50% reduc<on)
• LADWP and SCPPA – GHG emissions, facility level verifica<ons (6 years) • PG&E, SCE, SDG&E – GHG emissions, facility level verifica<ons (6 years) • Salt River Project, Arizona – GHG emissions, facility level verifica<ons (6 years) • NV Energy, Nevada – GHG emissions, facility level verifica<ons (6 years) • Pacificorp (Berkshire Hathaway Company) – GHG emissions, facility verifica<ons (6 years) • Sea_le City Light – GHG emissions, facility level verifica<ons (6 years) Independent Power Producers
GHG emissions, facility level verifica<ons, mul<ple facili<es, mul<ple years • Dynegy
• Calpine
• Mesquite Genera<ng Sta<on, Arizona
• NRG Energy
• EDF
U<li<es – Natural Gas
• GHG emissions, facility level verifica<ons, mul<ple facili<es, mul<ple years • PG&E
• SoCal Gas
• PG&E
• Southwest Gas

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Water and Wastewater Treatment (chlorine risk management) • Metropolitan Water District,
• East Bay Municipal U<lity District, mul<ple facili<es, mul<ple years • Sonoma County Water Agency, mul<ple facili<es, mul<ple years • Monterey Bay Regional Treatment Plant, mul<ple facili<es, mul<ple years • City of Santa Barbara – desalina<on plant
Arthur D Li_le, Inc. – clients and standout projects
• Early technology development for vehicle hybrid technology (Chrysler) • Technology development for onboard fuel reformer for fuel cell vehicles (Exxon) • Pioneered methodologies for environmental audi<ng and environmental performance • Global chemical companies including Allied Signal, Dupont, Dow, Chemours, ICI • SCAQMD – contracted for EIR safety and risk management reviews (ammonia) • Engineering and Construc<on companies (Bechtel, Brown & Root, etc) – safety and risk management studies
• Thompson Reuters, technical writer for safety and risk management newsle_er • Federal Government agencies – Environmental and Safety Audits, notably DOE Tiger Team audits of all Na<onal Labs
Lloyds Register
• 250-year company
• Recognized Shipping Classifica<on Society, UK Charity • Energy Assurance, major project commissioning
• LRQA – Quality Assurance, management systems
• American Na<onal Standards Ins<tute

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Staff Report Item 3
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Catherine Stedman, Chief Communications Officer SUBJECT: Approve the 3CE Community Advisory Council’s (“CAC”) FY 2025-26 Workplan and Adopt Resolution No. PB-2025-05 Establishing a Regular Meeting Schedule for the CAC
DATE: September 18, 2025
RECOMMENDATION:

This recommends that the Policy Board of Directors approve the 3CE Community Advisory Council’s (“CAC”) FY 2025-26 Workplan and adopt Resolution No. PB-2025-05 establishing a regular meeting schedule for the CAC.

BACKGROUND:

FY 2025-26 is the fourth year in which 3CE, in coordination with the CAC Chair, submits an annual workplan directing the work of the CAC to the Policy Board for consideration and approval.

At its September 2, 2025 meeting, the CAC discussed and unanimously supported seeking Policy Board approval of the 3CE CAC FY 2025-26 Workplan (the “Workplan”).

The Brown Act requires 3CE’s board to provide a regular time and place for its meetings by resolution, ordinance, or other formal action. Resolution No. PB-2025-05 would set the CAC’s 2025-26 regular meeting schedule to facilitate the proposed Workplan.

DISCUSSION/ANALYSIS:

The Workplan identifies areas requiring CAC feedback and specifies a timeframe for the gathering of additional public input and for the CAC to formulate its recommendations.

The FY 2025-26 Workplan involves a review of the Agricultural Electrification program to identify barriers to increased program participation and effectiveness, and to recommend solutions. 3CE's Agricultural Electrification program offers rebates for customers replacing fossil fuel agricultural

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equipment with electric alternatives, including tractors, irrigation pumps, and farm tools. This focus is particularly critical given that California’s agricultural sector contributes roughly 8% of the state’s total greenhouse gas emissions. 3CE serves over 8,300 agricultural accounts representing more than 16% of total load demand.

Key goals include engaging the community to ensure programs meet actual needs, developing actionable recommendations based on thorough analysis, evaluating and enhancing the Agricultural Electrification program, and improving communications and marketing strategies to reduce confusion and encourage greater program participation.

Building on the success of the FY 2024-25 Electrify Your Home study sessions, the proposed FY 2025-26 Workplan is the inclusion of four community focus group meetings designed to gather direct customer feedback on energy programs’ design, related communication strategies, and to hear directly from ag industry stakeholders about their interest in, and barriers to, participation.

The proposed FY 2025-26 CAC regular meeting schedule, including workplan items, is as follows:

1. October 2025: Discuss CAC roles and responsibilities, community focus group meeting planning, and review of the Ag Electrification Program.

3. February 2026: Discuss feedback from community focus group meetings, examine impacts of electrification on priority populations, potential program enhancements, and prepare for second set of community focus group meetings.

5. June 2026: Discuss feedback from community focus group meetings, communications strategies, and begin drafting recommendations.

6. August 2026: Discuss and provide feedback on FY 2026-27 CAC workplan.

Community focus group meetings will be held in the northern and southern portions of the service area in both November 2025 and April 2026.

This year also provides an opportunity to re-evaluate and rebalance programs in the face of significant shifts in federal policy. Staff anticipate engaging with the CAC to explore the impacts of the federal policy shifts on program impact and evaluating recommendations to improve program design in furtherance of 3CE’s goals to balance decarbonization and rate affordability. Staff anticipate reviewing federal impacts as part of the portfolio evaluation along with supplemental reports and discussions with the CAC.

FISCAL IMPACT:

The financial impact of the proposed CAC Workplan is anticipated to not exceed $15,000 and will be included as part of the proposed FY 2025-26 budget for approval in September. The costs are associated with public community focus group meetings, along with the anticipated community education and engagement benefits.

CONCLUSION:

The Policy Board’s adoption of the proposed FY 2025-26 CAC Workplan and adoption of a meeting schedule to support the workplan will facilitate public input and provide an opportunity for CAC

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members to lend their individual expertise and community knowledge to the improvement of energy program design and communications efforts, increasing access to 3CE’s energy programs, advancing electrification, and achieving emission reductions on the Central Coast.

ATTACHMENT(S):

1. FY 2025-26 CAC Workplan

2. Draft Resolution No. PB-2025-05

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Community Advisory Council
FY 2025-26 Workplan
Purpose
Central Coast Community Energy (3CE) provides reliable, affordable, clean electricity and electrification programs to reduce greenhouse gas emissions and strengthen our local community.
3CE is governed by separate Policy and Operations Boards (the “Boards”). 3CE’s professional staff (“staff”) carries out the policy direction of the governing boards.

The Community Advisory Council (CAC) is comprised of 15 members who serve in an advisory capacity to the boards.

Role of 3CE’s CAC
Feedback Community Engagement Board Support
Provide feedback, as
requested by 3CE staff and
Boards, on staff proposals
and recommendations
Actively engage with 3CE's
communities to assist 3CE
operational and policy goals,
engagement, and community
education regarding 3CE's
programs and initiatives
Support the Boards and staff
with outreach in furtherance
of 3CE's operational and
policy goals
The CAC workplan specifies CAC work items as requested by the Boards or staff.

In addition to informational/work study sessions that facilitate the CAC’s support of 3CE’s goals, other matters may be presented including:
- Proposed Energy Programs Portfolio
- Energy Programs Annual Portfolio Evaluation
- Communications & Outreach Strategies in support of Energy Programs - Other matters identified by the Boards or 3CE’s staff

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FY 2025-26 Study Sessions
TOPIC: IDENTIFYING SOLUTIONS TO ADDRESS BARRIERS TO ELECTRIFICATION AND PROGRAM PARTICIPATION FOR 3CE’S AGRICULTURAL COMMUNITY
The 3CE CAC FY 2025-26 Workplan focuses on interaction with community and customer stakeholders operating in and supporting the agricultural community to identify barriers to electrification and program participation. The CAC will provide feedback to develop program enhancements that will increase program participation and impact from across all agricultural communities and customer segments while achieving quantifiable emission reductions. In addition, the CAC will seek to enhance community engagement to ensure input and feedback for consideration, incorporating the broadest possible agricultural community representation.

I. Overview
The CAC will hold four formal meetings and four community focus group meetings over FY 2025-26. The CAC will work with staff to examine 3CE’s Agricultural Electrification program. The Agricultural Electrification program provides rebates to 3CE customers who replace fossil fuel powered agricultural equipment with new, all-electric equipment. Eligible equipment includes tractors, irrigation pumps, farm tools, utility vehicles, and other equipment. The program also provides technical assistance for customers interested in installing Level 3, or Direct Current Fast Charging, to support the transition to electric vehicles for agricultural operations. The technical assistance service includes evaluating property, designing a charging station plan, helping with bids from contractors, guidance through construction, and support for rebate applications.

The Agricultural Electrification program is of particular importance because 3CE has over 8,300 agricultural customer accounts that represent over 16% of 3CE’s total load demand. Despite this significant representation of the agricultural industry within the 3CE service area, the program continues to experience low participation year over year.

The examination will consider projects undertaken, reasons for success, limitations of the current design and implementation, barriers to participation identified by community members, and consider ways of increasing effectiveness and participation for all customers. 3CE staff, with CAC guidance, will evaluate metrics related to the impacts of electrification on businesses in and supporting the agricultural industry, including small businesses and priority populations in the industry. CAC members will be responsible for identifying key stakeholders, facilitating community input, and providing feedback on outreach and program initiatives for staff’s consideration.

II. Goals

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 Engage with the community to gather input and ensure that programs are responsible to community needs and preferences
 Develop actionable recommendations for 3CE based on thorough analysis and community feedback
 Evaluate current energy programs with a focus on Agricultural Electrification and propose enhancements which better serve the community and increase program participation
 Evaluate communications and marketing to ensure effectiveness, reduce confusion, and encourage program participation
III. Timeline
In preparation for the FY 2025-26 CAC workplan, 3CE staff will conduct prior research of 3CE’s agricultural landscape and barriers to electrification. This will include conducting a landscape assessment, understanding of additional program offerings available to agricultural customers, and meeting with ag industry stakeholders to learn about electrification barriers and emerging technologies in the industry.

OCTOBER 2025
Community Advisory Council Regular Meeting
Guiding Question: What part(s) of the 3CE agricultural customer electrification journey should 3CE focus developing support for?
 Discuss goals and objectives of the workplan, roles and responsibilities of council members
 Review current Agricultural Electrification program design, review results of 3CE landscape assessment
 Learn about emerging agricultural electrification opportunities and technologies (Guest Speaker)
 Discuss plans for first set of community focus group meetings CAC action items:
 Understand workplan goals and responsibilities
 Discuss additional considerations to understanding ag landscape  Recommend outreach materials and additional logistics for community meetings to effectively reach the agricultural community and gather input 3CE action items:
 Present current program design and identify need for improvement  Develop results and recommendations from landscape assessment

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 Plan first set of community focus group meetings
NOVEMBER 2025
Understanding Ag Community Needs, Community Focus Group Meetings I (North) & II (South)
Guiding Question: What support does 3CE’s agricultural community need to successfully electrify their operations?
 Gather input from Agricultural Business owners, staff, and supporting members regarding electrification challenges and opportunities for support  Conduct research and analysis to inform program development, ensuring examples are data-driven and community-focused; Summarize findings and recommendations in a presentation and discussion at publicly noticed CAC meetings
 Understand barriers to accessing financial assistance and adopting electrification technologies
 Explore community perspectives on potential solutions to addressing electrification barrier in agricultural industry
CAC action items:
 Conduct outreach to local community and network to encourage workshop attendance from members of the ag industry with insights on electrification  Attend workshops, facilitate discussions and collect feedback 3CE action items:
 Organize community focus group workshops and develop presentation content  Document insights and prepare a summary report for the next council meeting FEBRUARY 2025
Community Advisory Council Regular Meeting
Guiding Question: Will the initial program design support electrification for 3CE’s agricultural community including the underserved community?
 Review feedback from the first set of community focus group meetings  Examine impact of electrification on priority populations in the industry (Guest Speaker)
 Discuss initial program concept
 Prepare for the second set of community focus group meetings CAC Action Items:
 Review 3CE’s initial program concept and provide feedback on additional considerations to inform a holistic program concept
 Discuss guidelines for ag industry’s underserved community

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 Recommend outreach materials and additional logistics for community focus group meetings to effectively reach the agricultural community and gather input 3CE Action Items:
 Compile feedback from CAC and community focus group workshops to inform an initial program concept
 Plan second set of community focus group meetings
APRIL 2025
Building Local Engagement, Community Focus Group Meetings III (North) & IV (South) Guiding Question: What potential program components will effectively support electrification for 3CE’s agricultural customers?
 Communicate 3CE’s program goals and benefits of electrification  Gather input from Agricultural Business owners, staff, and supporting members on potential design enhancements to 3CE’s Agricultural Electrification Program  Conduct research and analysis to inform program development, ensuring examples are data-driven and community-focused; Summarize findings and recommendations in a presentation and discussion at publicly noted, CAC meetings CAC Action Items:
 Conduct outreach to local ag community and network to encourage workshop attendance
 Attend workshops, facilitate discussions and collect feedback 3CE Action Items:
 Organize community focus group workshops and develop presentation content  Document insights and prepare a summary report for the next council meeting JUNE 2025
Community Advisory Council Regular Meeting
Guiding Question: How should 3CE effectively educate and inform the ag community on the benefits of electrification to ultimately encourage program participation?  Review feedback from the second set of community focus group meetings and revised program concept
 Explore communication, outreach and education strategies CAC Action Items:
 Discuss revised program concept and provide additional considerations for 3CE staff  Advise effective program marketing and education strategies to improve reach, relevancy, and channels of communication

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3CE Action Items:
 Refine program concept with CAC and community feedback  Develop draft plan for program marketing and outreach AUGUST 2025
Community Advisory Council Regular Meeting
Guiding Question: How can lessons learned from the FY 2025-26 Workplan, be applied to the next fiscal year’s workplan?
 Discuss lessons learned from current year’s CAC workplan process and outcome  Review recommendations for next fiscal year CAC workplan CAC Action Items:
 Review and provide feedback on current year’s workplan process and outcome  Prepare FY 2026-27 CAC workplan recommendation item 3CE’s September 2026 Policy Board Meeting
3CE Action Items:
 Finalize FY 2026-27 CAC workplan recommendation for Policy Board IV. Council Member Responsibilities
 Feedback to 3CE staff: CAC will provide input and feedback to support program enhancement and increase participation
 Identification of key stakeholders: CAC will work with community organizations, local government, and other relevant entities to identify key stakeholders for engagement
 Facilitation of ag community input: CAC will help organize community meetings, support discussions, and ensure inclusive participation V. Expected Outcomes
Through the topics highlighted in the CAC workplan, council members and 3CE staff will collaboratively:
 Develop an enhanced program design that supports agricultural electrification and promotes electrification in priority community including small businesses
 Discuss clear, actionable recommendations for 3CE that inform a program implementation plan

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RESOLUTION NO. PB-2025-05

A RESOLUTION OF THE POLICY BOARD OF DIRECTORS OF CENTRAL COAST COMMUNITY ENERGY

ESTABLISHING A REGULAR MEETING SCHEDULE FOR THE COMMUNITY ADVISORY COMMITTEE; AND SUPERSEDING ALL PREVIOUSLY ADOPTED RESOLUTIONS TO THE

EXTENT OF ANY INCONSISTENT MEETING SCHEDULE, LOCATION AND TIMES WHEREAS, Central Coast Community Energy is a Joint Powers Authority established and operated pursuant to California Government Code section 6500 et seq. to study, promote, develop, conduct, operate, and manage energy programs in the California Central Coast region of Santa Cruz, Monterey, San Benito, Santa Barbara, and San Luis Obispo Counties; and WHEREAS, pursuant to the Ralph M. Brown Act, Government Code Section 54950 et seq. the Policy Board of Directors of the Authority ("Board") may fix, by resolution, the date upon which, and the hour and place at which, regular meetings are to be held; and WHEREAS, on February 15, 2023, the Board voted to suspend the Community Advisory Committee’s Bylaws, including its meeting schedule, and to create an annual workplan to direct the work of the CAC members; and
WHEREAS, the meeting schedule below is designed to support the FY 2025-26 Community Advisory Committee Workplan, which was unanimously approved by the Community Advisory Committee on September 2, 2025; and
WHEREAS, the Authority desires to establish a regular meeting schedule by resolution and to supersede any prior resolutions related to the foregoing by this resolution; and NOW, THEREFORE, the POLICY Board of Directors of the Central Coast Community Energy does hereby resolve as follows:

1. The regular meetings of the Community Advisory Committee will be held according to the following table:

DATE TIME LOCATION WORKPLAN ITEM
October 1, 2025
1 st Wednesday
4:00 p.m.

Monterey
headquarters and
noticed remote
locations
Discuss CAC roles and responsibilities,
community focus group meeting
planning, and review of the Ag
Electrification Program
February 4, 2026
1 st Wednesday
4:00 p.m.

Monterey
headquarters and
Discuss feedback from community focus
group meetings, examine impacts of

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noticed remote
locations
electrification on priority populations,
potential program enhancements, and
prepare for second set of community
focus group meetings
June 3, 2026
1 st Wednesday
4:00 p.m.

Monterey
headquarters and
noticed remote
locations
Discuss feedback from community focus
group meetings, communications
strategies, and begin drafting
recommendations
August 5, 2026
1 st Wednesday
4:00 p.m.

Monterey
headquarters and
noticed remote
locations
Discuss and provide feedback on FY
2026-27 CAC workplan.

The Community Advisory Committee meetings will be held at Central Coast Community Energy’s Monterey headquarters.

1. If necessary, special Community Advisory Committee meetings will be convened and duly noticed consistent with Brown Act requirements.

2. This Resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED by the Policy Board of the Central Coast Community Energy this 18
th Day of September by the following vote:

AYES:

NOES:

ABSENT:

Chair, Fred Keeley
Attest:
____________________________________
Board Clerk, Heather Vowell

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Staff Report Item 4
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Thomas White, Accountant
SUBJECT: Renew Delegation of Investment Authority to the Treasurer DATE: September 18, 2025
RECOMMENDATION:

This memorandum recommends that the Policy Board accepts staff’s recommendation to renew the Delegation of Investment Authority to the Treasurer pursuant to California Government Code Section 53607.

BACKGROUND:

In June of 2023, the Policy Board appointed 3CE’s Chief Financial Officer, Dewayne Woods, to serve as treasurer, pursuant to California Government Code Section 6505, and section 3.3.3(h) of 3CE’s Joint Exercise of Powers Agreement.

Pursuant to California Government Code section 53607 the Policy Board may renew the delegation of investment authority to the Treasurer each year, subject to review.

DISCUSSION/ANALYSIS:
3CE requests the Policy Board of Directors renew the delegation of investment authority to the Treasurer, Dewayne Woods, 3CE’s Chief Finance Officer, for FY 2025-26 as prescribed by California Government Code Section 53607. Section 53607 allows a local agency’s governing body to delegate its investment authority to the treasurer for up to one year, subject to annual renewal and ongoing reporting and oversight.

Since the Board’s delegation, the CFO has invested the agency’s treasury in line with 3CE’s Investment Policy. Renewal of the delegation of investment authority will continue the ongoing investments that

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generate investment income for the agency. The investment performance report is provided on a regular quarterly basis to the Audit and Finance Committee and Operations and Policy boards.

Delegation does not relieve the Policy Board of ultimate responsibility and oversight but allows the Treasurer to manage day-to-day investment transactions in compliance with 3CE’s Investment Policy.

FISCAL IMPACT:

There is no fiscal impact associated with this delegation renewal.

CONCLUSION:

Renewing the Delegation of Investment Authority ensures continuity in investment management, maintains compliance with state law, and allows the Chief Financial Officer to continue fulfilling the Treasurer’s duties under 3CE’s Investment Policy.

ATTACHMENT(S):

1. 3CE Investment Policy

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1 FP11
Category: FINANCE

INVESTMENT POLICY
I. PURPOSE
This statement contains guidelines for the prudent investment of MBCP's cash balances in accordance with California Government Code sections 53600, et. seq. The overarching goal of MBCP’s Investment Policy is to protect MBCP's pooled cash while producing a reasonable rate of return on investments.

II. STANDARD OF CARE
The standard of prudence to be used by investment officials will be the “prudent investor” standard, which states that, “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” III. SCOPE
This Investment Policy applies to all funds and investment activities of MBCP. This Policy does not apply to the investment of bond proceeds, which would be governed by any applicable bond documents.

IV.OBJECTIVES
The primary objectives, in priority order, of the investment activities of MBCP are:

1. Safety of Principal – Preservation of principal is the foremost objective of MBCP.

2. Liquidity – MBCP’s portfolio will remain sufficiently liquid to enable MBCP to meet its cash flow requirements. It is important that the portfolio contain investments which provide the ability of being easily sold at any time with minimal risk of loss of principal or interest.

3. Return on Investment – MBCP’s investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and cash flow needs.

Delegation of Authority
Pursuant to California Government Code Section 53607, the Treasurer (and his/her designee, if necessary) is authorized to invest and reinvest money of MBCP, to sell or exchange securities so

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2 purchased, and to deposit such securities for safekeeping in accordance with and subject to this investment policy.

MBCP may engage the support services of outside investment advisors in regard to its investment program, so long as these services are likely to produce a net financial advantage or necessary financial protection of MBCP’s financial resources. Outside investment advisors must be approved by the Chief Executive Officer, the Treasurer and the Board of Directors. MBCP will be responsible for managing the investment advisors.

Conflict of Interest
The authorized employees involved in the investment process will refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions.

Pursuant to MBCP’s Conflict of Interest Code, the authorized employees will disclose any financial interests and investment holdings that could affect the performance of MBCP’s portfolio or the individual’s judgement or decisions regarding MBCP’s portfolio.

Authorized Financial Dealers and Institution
The purchase by MBCP of any investment other than those purchased directly from the issuer, will be purchased either from an institution licensed by the State as a broker-dealer, as defined in Section 25004 of the Corporations Code, which is a member of the Financial Industry Regulatory Authority (FINRA), or a member of a federally regulated securities exchange, a national or state chartered bank, a federal or state association (as defined by Section 5102 of the Financial Code), or a brokerage firm designated as a Primary Government Dealer by the Federal Reserve Bank.

The Treasurer is responsible for the evaluation of all institutions that wish to do business with MBCP, to determine if they are adequately capitalized, staffed by qualified investment professionals, and agree to abide by the conditions set forth in MBCP’s Investment Policy and any other guidelines that may be provided. This will be done annually by having the financial institutions:

1. Provide written notification that they have read, and will abide by, MBCP’s Investment Policy.

2. Submit their most recent audited Financial Statements within 120 days of the institution’s fiscal year end.

If MBCP has an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of MBCP.

Purchase and sale of securities will be made on the basis of best execution.

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3 Authorized Investments
Acceptable investments authorized for purchase or behalf of MBCP are:

1. Deposits at Bank(s) – Funds may be invested in non-interest-bearing depository accounts to meet MBCP’s operating and collateral needs. Funds not needed for these purposes will be invested in interest-bearing depository or investment accounts such as Public Fund Money Market and Insured Cash Sweep accounts, or Certificates of Deposit.

Banks eligible to receive deposits will be federally or state chartered and will confirm to California Government Code 53635.2.

2. U.S. Treasury obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest.

3. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.

4. Obligations of the State of California or any local agency within the state, including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state or any local agency, or by a department, board, agency or authority of the state or any local agency that is rated in a rating category of “A” or its equivalent or better by a nationally recognized statistical-rating organization (NRSRO). Purchases of the obligations described in this subdivision and in subdivision 4 (registered treasury notes or bonds of any of the other 49 states in addition to California) collectively may not exceed 20% of MBCP’s portfolio.

5. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state, or by a department, board, agency, or authority of any of these states that is rated in a rating category of “A” or its equivalent or better by an NRSRO.

Purchases of the obligations described in this subdivision and in subdivision 3 (obligations of the State of California or any local agency within the state) collectively may not exceed 20% of MBCP’s portfolio.

6. Commercial Paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper must meet all of the following conditions in either paragraph a or paragraph b:

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4 a. The entity meets the following criteria: (i) is organized and operating in the United States as a general corporation, (ii) has total assets in excess of five hundred million dollars ($500,000,000), and (iii) has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO. b. The entity meets the following criteria: (i) is organized within the United States as a special purpose corporation, trust, or limited liability company, (ii) has program-wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond, and (iii) has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO.

Eligible commercial paper will have a maximum maturity of 270 days or fewer. No more than 20% of MBCP’s portfolio may be invested in commercial paper. MBCP may purchase no more than 10% of the outstanding commercial paper of any single issuer. No more than 5% of the outstanding commercial paper investments can be invested in the Energy industry/sector.

7. Repurchase Agreements. Overnight Repurchase Agreements shall be used solely as short-term investments not to exceed 3 days.

8. Local Agency Investment Fund (State Pool) - An investment pool managed by the State Treasurer. MBCP can invest up to the maximum amount permitted by the State Treasurer.

9. County Investment Fund (County Pool) - Shares of beneficial interest issued by a joint powers authority (Local Government Investment Pools or “Pool”) organized pursuant to California Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions to (q) of California Government Code Section 53601, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the Joint Powers Authority. The Pool will be rated in a rating category “AAA” or its equivalent by a NRSRO. To be eligible under this section, the shares will maintain a stable net asset value (NAV) and the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria:
a. The adviser is registered or exempt from registration with the Securities and Exchange Commission.
b. The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q) California Government Code Section 53601, inclusive.
c. The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

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5 Restriction on Investment Policies and MBCP Constraints Section 53600 et. seq. of the State of California Government Code outlines the collateral requirements for certain types of investments and also limits the percentage of total investments which can be placed in certain classifications. Investments must meet the time schedules as indicated by the cash flow projections of MBCP. Investments will be purchased with the intent to hold until maturity, however this will not preclude the sale of securities prior to maturity in order to reposition the portfolio’s duration, credit quality, or enhance the rate of return.

Maturity Limit
State law requires that the maturity of any given instrument should not exceed five years unless specifically approved by MBCP Board of Directors at least three months before the investment is made. Maximum Maturity for MBCP’s investments shall be limited to 2 years.

Internal Control
The Treasurer is responsible for establishing and maintaining an internal control structure designed to provide reasonable assurance that the assets of MBCP are protected from loss, theft or misuse. The MBCP Treasurer or his/her designee shall arrange for an annual audit by an external CPA firm in compliance with the requirements of state law and generally accepted accounting principles as pronounced by the GASB (Governmental Accounting Standards Board).

As part of the audit, investment transactions will be tested. The annual audit will be an integral part, but not the sole part of management’s program of monitoring internal controls.

Performance Standards
MBCP’s portfolio shall be structured to achieve a market-average rate of return through various economic cycles, commensurate with the investment risk constraints and the cash flow needs.

Investment performance will be calculated on a gross basis before fees and expenses and tracked monthly for internal use and monitoring.

Reporting Requirements
The Treasurer will provide a year-to-date investment summary to the Board of Directors on a monthly basis. The summary will show the type of investment, the average balance of funds invested, and average annual percentage yield.

Policy Review
This Investment Policy will be reviewed at least annually to ensure its consistency with:

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6 1. The California Government Code sections that regulate the investment and reporting of public funds.

2. The overall objectives of preservation of principal, sufficient liquidity, and a market return.

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7 Glossary
Broker-Dealer is a person or a firm who can act as a broker or a dealer depending on the transaction. A broker brings buyers and sellers together for a commission. They do not take a position. A dealer acts as a principal in all transactions, buying and selling for his own account.

Collateral refers to securities, evidence of deposits, or other property that a borrower pledges to secure repayment of a loan. It also refers to securities pledged by a bank to secure deposits.

In California, repurchase agreements, reverse repurchase agreements, and public deposits must be collateralized.

Commercial Paper is a short term, unsecured, promissory note issued by a corporation to raise working capital.

Duration is a measure of the sensitivity of the price of a security or a portfolio of securities to a change in interest rates, typically stated in years.

Federal Agency Obligations are issued by U.S. Government Agencies or Government Sponsored Enterprises (GSE). Although they were created or sponsored by the U.S. Government, most Agencies and GSEs are not guaranteed by the United States Government. Examples of these securities are notes, bonds, bills and discount notes issued by Fannie Mae (FNMA), Freddie Mac (FHLMC), the Federal Home Loan Bank system (FHLB), and Federal Farm Credit Bank (FFCB). The Agency market is a very large and liquid market, with billions traded every day.

Issuer means any corporation, governmental unit, or financial institution that borrows money through the sale of securities.

Liquidity refers to the ease and speed with which an asset can be converted into cash without loss of value. In the money market, a security is said to be liquid if the difference between the bid and asked prices is narrow and reasonably sized trades can be done at those quotes.

Local Agency Investment Fund (LAIF) is a special fund in the State Treasury that local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum of $65 million for any California public agency. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly via direct deposit to the agency’s

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8 LAIF account. The State keeps an amount for reasonable costs of making the investments, not to exceed one-quarter of one per cent of the earnings.

Local Government Investment Pools (LGIP) are investment tools similar to money market funds that allow public entities to invest funds.

Maturity is the date upon which the principal or stated value of an investment becomes due and payable.

Money Market Fund is a type of investment comprising a variety of short-term securities with high quality and high liquidity. The fund provides interest to shareholders. Eligible money market funds must strive to maintain a stable net asset value (NAV) of $1 per share.

Net Asset Value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end or mutual funds, since shares of such funds registered with the U.S.

Securities and Exchange Commission are redeemed at their net asset value. Money Market funds that MBCP is authorized to invest in are required to maintain an NAV of $1.00 at all times.

Principal describes the original cost of a security. It represents the amount of capital or money that the investor pays for the investment.

Repurchase Agreements are short-term investment transactions. Banks buy temporarily idle funds from a customer by selling him U.S. Government or other securities with a contractual agreement to repurchase the same securities on a future date at an agreed upon interest rate.

Repurchase Agreements are typically for one to ten days in maturity. The customer receives interest from the bank. The interest rate reflects both the prevailing demand for Federal Funds and the maturity of the Repo. Repurchase Agreements must be collateralized.

U.S. Treasury Issues are direct obligations of the United States Government. They are highly liquid and are considered the safest investment security. U.S. Treasury issues include:

1. Treasury Bills which are non-interest-bearing discount securities issued by the U.S.

Treasury to finance the national debt. Bills are currently issued in one, three, six, and twelve-month maturities.

2. Treasury Notes that have original maturities of one to ten years.

3. Treasury Bonds that have original maturities of greater than 10 years.

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Staff Report Item 5
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Inaara Muhammad, Manager of Energy Programs SUBJECT: Update on 3CE’s Energy Programs
DATE: September 18, 2025
RECOMMENDATION:

Receive an update on 3CE’s Energy Programs.

BACKGROUND:
3CE’s Energy Programs have been administered since 2019 to support 3CE’s mission by serving the Central Coast community with incentives to engage in electrification initiatives, strengthen the local economy, and reduce greenhouse gas emissions. The Energy Programs portfolio has undergone several iterations to improve community-wide accessibility and strengthen participation for priority communities. Currently, 3CE offers 11 programs and two pilots to support residential, commercial, and public agency electrification efforts in the transportation, building, and agricultural sectors.

DISCUSSION/ANALYSIS:

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

The third quarter of FY 2024-25 included increased participation in 3CE's Energy Programs and led to 42% more incentives distributed than during the first three quarters of FY 2023-24. This is in part due to increased uptake in building electrification opportunities by underserved communities, urgency in residential electrification due to federal funding decisions, and new member agencies engaging in electrification planning. The Energy Programs Update for Q3 FY 2024-25 (Attachment 1) highlights the agency programs’ impact through the third quarter, as compared to the prior fiscal year’s third quarter.

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3Q FY23/24 3Q FY24/25
Total Funds Distributed $5.3 million $9.2 million
GHG Reductions 469 gas cars off the road 964 gas cars off the road Load Shifted 0kWh over 1,181 kWh daily
3CE’s Energy Programs Portfolio Analysis Update (Attachment 2) provides a more detailed look at individual Energy Programs in FY 2024-25, showing data collected through August 2025. The update shares a variety of program performance metrics, including equipment-incentivized, housing units electrified, dollars spent, and performance on equity (e.g., incentives and support for income-qualified customers). The update also describes strategic initiatives currently underway to enhance 3CE’s Energy Programs portfolio through pilots and new program offerings. Below are several ongoing strategic initiatives across Energy Programs’ focus areas.

Transportation Electrification
EV Charger Asset Pilot: Construction and activation of workplace charging at 3CE’s San Luis Obispo office are complete, including ADA upgrades, charger installation, and fire system improvements. The project is now in the EV charging implementation phase, with employee access scheduled to begin in September 2025. This pilot will provide staff with direct access to charging and support clean transportation adoption.

Building Electrification
Electrify Your Home: This fiscal year, the program expects to distribute almost $4 million in incentives, with 70% to income-qualified customers. On July 3rd, 3CE paused the program due to increased engagement, and will provide retroactive rebates for purchases made during the pause period. The program will relaunch in-house on October 1st with expanded new elements including additional rebates and expanded contractor eligibility. Additionally, 3CE is actively reviewing proposals for a facilitator for a single-family virtual home assessments pilot.

Dynamic Pricing Pilots
Hourly Flex Pricing Pilot: 3CE is enrolling eligible customers for its Hourly Flex Pricing Pilots (HFPP), which offers customers the opportunity for bill savings and operational benefits through load shifting in response to real-time, dynamic price signals. So far, six agricultural customers, 12 residential customers, and 56 commercial customers have enrolled in the pilot.

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Energy Optimization
Residential Battery Rebate Program: 3CE is actively engaging with battery installers to conduct outreach and education about the program’s requirements. 3CE recently released a program toolkit for installers to consult when discussing the program with customers. The toolkit includes information for installers on the program’s design, discharge requirements, and technical assistance. Since launching the program, 205 customers have received a rebate, which equates to 1.8 MWh of peak daily load shifting.
3CE’s customer relationship management system, which was implemented last fiscal year, has enabled energy programs to continue to remain open as 3CE transitions into FY 2025-26. 3CE’s website has been updated to communicate any changes to participation eligibility dates at the start of the fiscal year.

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 customers and economies.

ATTACHMENT(S):

1. Energy Programs Update for Q3 FY 2024-25

2. 3CE Energy Programs Portfolio Analysis Update

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diesel buses off the
road with support
of E-bus program
12 Energy Programs Updates
2025 Q3
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 3,203 MT CO2e avoided as of JULY 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 Sand City
• 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 San Luis Obispo.......1 EV & 8 L2s
County of San Luis Obispo...2 EVs
County of Santa Barbara .... 60 L2s
ag equipment
transitioned to electric
alternatives with
support of Agricltural 747 Electrification Program
Farm in Santa Barbara County
$50,499
Ag Electrification Program
Affordable Housing in Santa Cruz
$50,000
New Construction Elec. Program
Grape Farm in San Luis Obispo
$92,877
Ag Electrification Program
536
238
20 City of Goleta............17 L2s
City of Salinas............3 EVs
City of Santa Cruz....1 L3
City of Santa Maria...2 EVs

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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 August 2025. The Energy Programs Update for Q3 FY 2024- 25 (Attachment 1) highlights the agency programs’ impact through the third quarter (June 2025), as compared to the prior fiscal year’s Q3 (June 2024).
3Q FY23/24 3Q FY24/25
Total Funds Distributed $5.3mil $9.2mil
GHG reductions 469 gas cars off the road 747 gas cars off the road Load Shifted 0kWh over 1,181 kWh daily

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, 3CE has distributed over $4.0 million in EYR rebates across five counties, supporting over $45 million in EV and EV charger purchases. The EV purchases have resulted in over 4,073 MT CO2e avoided, which is equivalent to removing 950 gas cars off the road for one year.

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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

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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. The FY 2024-25 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 $1.3M in rebates for 13 electric buses and transit vans in five counties. These rebates have helped enable about $9.1M in electric bus purchases.

County Applicant
Type
Total # of
E-Buses
% of Funding to Title 1 School or
Low-Income Community
Monterey 1 School District 1 100%
San Benito 1 School District 1 100%
San Luis Obispo 1 Transit Agency 5 0%
Santa Barbara 2 School Districts 3 50%
Santa Cruz 2 School Districts 3 0%
TOTAL: 7 School Districts
& 1 Transit Agency 13 50%
Table 1 (above): FY 2-24-25 Electric Bus Program projects.

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. We are The following jurisdictions have engaged with the Plan Your Fleet program so far, this fiscal year:
 City of Capitola  City of Sand City
 City of Guadalupe  City of San Luis Obispo
 City of Monterey  City of Soledad
 City of Salinas  County of Santa Barbara

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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 Charger) EV chargers. Member Agencies are eligible for up to $150,000 in funding support each fiscal year. 3CE’s FY 2024-25 CYF budget totals $1 million.

In FY 2024-25, the program has incentivized 86 chargers totaling nearly $284k and is engaged with additional Member Agencies who are in the process of installing EV chargers. 3CE expects increased participation towards the end of the fiscal year and into the next fiscal year as Member Agencies who took part in the Plan Your Fleet program implement their plans.

Member Agency Equipment Type Quantity
CITY OF GOLETA Level 2 17
CITY OF SAN LUIS OBISPO Level 2 8
CITY OF SANTA CRUZ Level 3 1
COUNTY OF SANTA BARBARA Level 2 60
TOTAL 86
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 budgeted $1.1 million for EYF.

To date in FY 2024-25, 3CE has distributed $113k to incentivize the purchase and/or lease of 15 EVs. Staff are working with Member Agencies who are in the process of purchasing electric fleet vehicles including the City of Capitola, City of Guadalupe, City of San Juan Batista, City of Santa Cruz, and the City of Watsonville.

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Member Agency Equipment Type Quantity
CITY OF GOLETA Battery Electric Vehicle 1
CITY OF SALINAS Battery Electric Vehicle 3

CITY OF SAN LUIS OBISPO
Battery Electric Vehicle
Electric Equipment 7
CITY OF SANTA MARIA Battery Electric Vehicle 2
COUNTY OF SAN LUIS OBISPO Battery Electric Vehicle 2
TOTAL 15
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 and Soquel Offices On December 11, 2024, the Policy Board approved an EV charger capital project at 1026 Palm Street in San Luis Obispo as part of 3CE’s EV Charger Asset Pilot. Initial construction, including civil work and charger pedestal installation, was completed and highlighted during 3CE’s community open house on March 19, 2025. Final construction, including fire sprinkler upgrades and charger energization, was completed on July 14. Charger activation and operational readiness was completed on August 29, 2025. The project is now in the EV charging implementation phase, with employee access scheduled to begin in September 2025.

The project remains within the approved construction budget of $165,598 and is expected to realize additional cost savings through a $68,400 grant awarded by the San Luis Obispo APCD.

On June 18, 2025, the Policy Board approved a second EV charger project at 3CE’s Santa Cruz office located at 2601 Porter Street in Soquel as an additional workplace charging pilot site. The project is in the construction planning and procurement phase, with construction expected to begin in September and anticipated completion by year-end 2025.

Since the Board’s initial approval in December, EV ownership among San Luis Obispo office employees has increased by 50 percent, reinforcing the value of accessible workplace charging. Staff have applied

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lessons learned from the San Luis Obispo project to advance preliminary work at 3CE’s Soquel office, including engineering design and contractor pricing.

Picture 1 (above): EV Chargers at 3CE’s San Luis Obispo Office Future Pilot Sites
3CE staff are exploring additional pilot projects for workplace and public EV charging as part of the implementation of the EV Charging Master Plan. These potential sites will support 3CE’s strategy to expand access to EV charging along the Central Coast through agency-managed infrastructure.

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.

On April 9th, the Operation Board authorized Amendment No. 6 to 3CE’s agreement with Energy Solutions.

The Amendment revised the scope of work to bring incentive check processing in house, reducing the total not to exceed amount by $735,000 to 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 $3,498,705 in rebates to support the installation of 223 Heat Pump HVAC units and 823 Heat Pump Water Heater Units. On July 3rd, the program was paused to new applications due to a sharp increase in participation. The program is expected to distribute 65% of rebates this fiscal year to income qualified customers. The program will be relaunched on October 1st and

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include expanded eligibility guidelines to retroactively rebate customers who purchased appliances during the pause period.

County Heat Pump HVAC
Units Installed
Heat Pump Water Heater
Units Installed
MONTEREY 58 46
SAN BENITO 5 0
SAN LUIS OBISPO 13 50
SANTA BARBARA 10 714
SANTA CRUZ 137 13
Table 4 (above): FY 2024-25 Electrify Your Home installations by county. 3CE staff are collaborating with the agency’s Community Advisory Council (CAC) to design the next iteration of Electrify Your Home. On July 7th, 2025, 3CE published a request for proposals seeking a program facilitator to provide Virtual Home Assessments to 3CE’s residential customers.

New Construction Electrification Program
The New Construction Electrification Program (NCEP) provides housing developers and homeowners 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.

In FY 2024-25, the program has so far distributed $887,000 across four counties to support construction of 299 all-electric units.
3CE County
Market-Rate
Housing
Affordable
Housing
Accessory Dwelling
Units (ADUs)
Disaster
Rebuilds
Total Units
Incentivized
MONTEREY - 55 3 - 58

SAN BENITO - - - - -

SAN LUIS
OBISPO 2 34 18 - 54
SANTA
BARBARA - 5 - 5
SANTA CRUZ - 172 6 4 182
Table 5 (above): All-electric construction supported via NCEP in FY 2024-25.

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Reach Code Program
3CE’s Reach Code program launched October 1, 2022, providing local cities and counties with 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 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. The amendment also added additional services for code updates, and outreach to engage new member agencies with the program.

In FY 2024-25, 3CE provided 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 the Ag Electrification Program is $800,000.

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Rebates for equipment with higher estimated GHG emissions avoidance and more expensive equipment options, as well as those projects 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:
 Tier 1: Up to $15,000 for lower cost and GHG avoidance projects; and  Tier 2: Up to $75,000 for larger relative cost and GHG avoidance projects.

Program funds are offered as a post-purchase rebate, with up to two rebates per customer per fiscal year.

In FY 2024-25, 3CE has so far distributed $646,916 in rebates to support 20 equipment purchases. These rebates have helped enable over $1.5M in all-electric agricultural equipment. Eighty percent of incentives distributed in FY 2024-25 have been to small business customers.

County Equipment
Incentivized
% Incentives to
Small Businesses
Monterey
3 Standard tractors
1 Irrigation pump
1 Harvest equipment
80%
San Benito 1 Standard tractor
1 Forklift 100%
San Luis
Obispo 2 Standard tractors 100%
Santa
Barbara
4 Standard tractors
1 Excavator 80%
Santa Cruz
2 Standard tractors
1 Compact tractor
1 Excavator
1 Irrigation pump
1 Harvest equipment
1 Wine processing system
100%
Total: 21 All-electric equipment 80%
Table 7 (above): Agricultural electrification projects awarded in FY 2024-25.

ENERGY OPTIMIZATION
Residential Battery Rebate Program
3CE’s Residential Battery Rebate program launched on July 16, 2024, to promote the use of residential behind-the-meter battery storage systems. Rebates are provided for the purchase of eligible batteries, qualifying installation hardware, and labor directly related to the battery system's installation. 3CE has set

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a goal of issuing 400 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) rebate for customers. A $500 per kilowatt hour (kWh) rebate is offered to Net Energy Metering (NEM) 1.0 and NEM 2.0 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 rely on electricity to power medical devices. To promote adoption in disadvantaged and low-income communities, the program 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 meet the program’s requirements by setting their battery systems to discharge during the peak hours of 4 pm to 9 pm. One hundred-sixty-two customers have since signed up to receive assistance and have successfully met discharge requirements. Staff are conducting direct outreach to rebate applicants to facilitate their enrollment.

In FY 2024-25, 3CE has distributed $1.2 million in rebates to 194 customers. Since launch of the program, customers have shifted approximately 1,849 kWh, or 1.8 MWh, of load daily during peak hours.

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

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Hourly Flex Pricing Pilots 1 and 2
3CE is reaching out to eligible customers for the Hourly Flex Pricing Pilots (HFPP), which provides an opportunity for customer savings and operational benefits through load shifting in response to real-time, dynamic price signals. The pilots offer eligible agricultural, commercial, and residential customers a way to lower their energy costs by locking into hourly, market-based energy prices, forecasted up to one week in advance. The pricing incentivizes participants to shift energy use to lower priced hours.

Participants are charged monthly at their normal rate; however, a monthly “performance bill” based on the hourly rates is issued and at the end of each 12-month period, with any total cost savings achieved through hourly price-based load shifting paid to the customer by 3CE check.

The Hourly Flex Pricing Expanded Pilot 1 is for agricultural customers and includes the option to receive a one-time rebate for purchasing automation technology and software that responds to price signals, such as a smart 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 optimize load shifting.

To date, 3CE has 74 customers enrolled in HFP Pilots 1 or 2. Total enrolled load from these customers is just over 16 GWh; approximately 25% of 3CE’s total internal load enrollment goals for the pilot.

Pilot Customers Enrolled Total Enrolled Load
HFP Expanded Pilot 1 (Agricultural) 6 4.04 GWh
HFP Expanded Pilot 2 (Commercial) 56 13.49 GWh
HFP Expanded Pilot 2 (Residential) 12 0.103 GWh
TOTAL 74 17.63 GWh
Table 8 (above): 3CE customers enrolled in Hourly Flex Pricing Pilot

OTHER STRATEGIC INITIATIVES
Customer Relationship Management System
The new Customer Relationship Management (CRM) tool for program management and applications was successfully launched on October 1st, 2024. As a result, existing program applications were kept open during the transition from FY 2023-24 to FY 2024-25. Additional usability features are under development.

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Staff Report Item 6
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Jerri Strickland, Director of Regulatory Affairs & Compliance Das Williams, Senior Advisor of Policy and Legislative Affairs SUBJECT: Regulatory and Legislative Quarterly Update
DATE: September 18, 2025
RECOMMENDATION:

This memorandum provides the Policy Board with a fourth quarter Regulatory & Legislative Update.

DISCUSSION:

The Regulatory and Legislative Quarterly Updates prepare a summary of key proceedings and policy matters impacting 3CE’s customers, business operations, and climate goals.

FISCAL IMPACT:

There is no financial impact associated with receiving this report.

ATTACHMENT(S):

1. Quarterly Regulatory and Legislative Update

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Quarterly Regulatory & Legislative
Policy Board Update
September 18, 2025

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Table of Contents
Contents
REGULATORY UPDATE ..................................................................................................................................3 Resource Adequacy (RA) -.........................................................................................................................3 Bioenergy Market Adjustment Tariff (BioMAT) -......................................................................................3 New Power Charge Indifference Adjustment (PCIA) Rulemaking –..........................................................4 Integrated Resource Planning (IRP) -........................................................................................................4 Renewables Portfolio Standard ................................................................................................................5 Interconnections -.....................................................................................................................................6 Demand and Distributed Energy Market Integration -.............................................................................6 Provider of Last Resort (POLR) and Emergency Transition Planning –.....................................................7 PG&E Rule 30 Application for Transmission Service.................................................................................8 Improvements to the Climate Credit........................................................................................................8 Energy Resources Recovery Account (ERRA) Forecast .............................................................................9 General Rate Cases...................................................................................................................................9 Demand Flexibility ..................................................................................................................................10 Integrated Energy Policy Report 2025 – .................................................................................................11 3CE LEGISLATIVE REPORT – Summer 2025 .................................................................................................11 Federal Legislative Developments: .........................................................................................................11 State Legislative Developments:.................................................................................................................12 Community Relations Recap:......................................................................................................................13

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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
The Track 3 Decision, issued June 27, closed the RA proceeding but set workshops for the remainder of 2025 to consider accreditation of long-duration energy storage under the slice-of-day (SOD) framework and proposals for an unforced capacity (UCAP) methodology to account for historical forced outage rates in RA values of certain resources. On July 30, the CPUC held a workshop to discuss SOD Implementation updates for the 2026 compliance year, including changes resulting from the Track 2 and 3 RA Decisions. In mid-August, the CPUC issued its 2023 RA Report, which provides an overview of the 2023 RA compliance year and presents key takeaways including evidence of increasing RA prices and collective compliance of LSEs in meeting system obligations for all months. The report also demonstrates that out of all the CCAs, 3CE had the fourth-highest percentage of annual RA requirements met by eligible renewable and zero-emitting energy resources.

Next Steps
3CE will continue to attend the CPUC’s RA workshops to remain informed of any changes to the compliance program and will submit its Year-Ahead RA filing for 2026 by the October 31 deadline. In Q1 of 2026, the Energy Division will conduct a study to investigate whether transactability issues exist within the RA program. This will inform the Commission’s consideration of additional refinements to the SOD framework, including an hourly load obligation trading mechanism as proposed by CalCCA and supported by 3CE.

Bioenergy Market Adjustment Tariff (BioMAT) - R.22-10-010 Issue
BioMAT is a procurement program opened in 2015 to encourage the development of small bioenergy projects in California. The program is unique in that it allows load serving entities (LSEs) contracting with these projects to recover the costs from all California electricity users through the Public Purpose Programs (PPP) charge. In 2021, 3CE and other CCAs successfully lobbied legislators to reverse the exclusion of CCAs from BioMAT with the passage of AB 843. AB 843 was the first time CCAs gained access to PPP funding, setting a valuable policy precedent. The CPUC began implementation of AB 843 in October 2022 by opening of a new proceeding to work through the details of CCA participation. On August 14, 2024, 3CE’s Operations Board approved 3CE’s participation in the BioMAT program and authorized 3CE’s CEO to execute PPAs with BioMAT-eligible projects.

Status
On July 2, as authorized by the Operations Board, 3CE executed a PPA with an eligible BioMAT project that submitted an application to 3CE’s BioMAT program. As the only CCA to have an executed BioMAT

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PPA, 3CE submitted the first-ever CCA application for compliance review regarding 3CE’s administration of the BioMAT program on August 29. The application and supporting testimony describe 3CE’s compliance with the BioMAT program requirements and 3CE’s prudent management of its BioMAT PPA.

Separately, stakeholders including CCAs and bioenergy developers are currently advocating that the BioMAT program be extended past its current sunset date of December 31, 2025.

Next Steps
3CE will be engaged in its application proceeding and continue to demonstrate compliance with BioMAT program requirements in order to seek cost recovery for the project once it comes online, currently scheduled for 2027. 3CE will monitor the RPS proceeding for any changes to the BioMAT program including potential extension of the program.

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

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

Status
Track 1 of the proceeding concluded with a June 26 Decision that adopted changes to the calculation of the RA MPB, which will be utilized in the 2025 MPB true-up. On July 28, CalCCA filed an application for rehearing (AfR) of the Track 1 Decision, arguing that applying the new MPB methodology to final 2025 PCIA revenue requirements constitutes unlawful retroactive ratemaking and that the changes should only be applied prospectively. The Joint IOUs responded in opposition to the AfR on August 12, encouraging the Commission not to delay implementation of the revised RA MPB methodology. While a formal Track 2 scoping memo and schedule has not yet been issued, Track 2 will consider additional modifications to MPB methodologies and proposals for alternative long-term approaches to the current PCIA mechanism.

Next Steps
If the Commission does not respond to CalCCA’s AfR of the Track 1 Decision by November 25, CalCCA will have an additional 90 days to determine whether to file an appeal with the California Supreme Court. 3CE continues to monitor for a Track 2 scoping memo and will be engaged in developing proposals for broader PCIA reform.

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

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GHG emissions below an assigned benchmark while contributing to a resource fleet that meets sector-wide GHG targets and maintaining grid reliability. Previous IRP cycles have produced three procurement mandates, which apply to 3CE and other CCAs. On April 18, the CPUC issued an Amended Scoping Memo stating its intent to address additional issues in the IRP proceeding, including implementation of Assembly Bill (AB) 1373 which allows the Commission to request that the Department of Water Resources (DWR) serve as a central procurement entity (CPE) for certain long-lead time (LLT) resources, as well as 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 August 5, parties submitted reply comments on proposals for an RCPPP framework that would introduce new long-term reliability and greenhouse gas (GHG) reduction procurement requirements.

While many parties agree that RCPPP should use SOD counting rules to avoid misalignment with the RA program, positions vary significantly on the design for the GHG-reduction framework and several stakeholders support an interim procurement order while RCPPP is developed and finalized. Relatedly, American Clean Power – California filed a motion requesting the CPUC to direct IOUs to undertake immediate procurement of resources eligible for Investment and Production Tax Credits. CalCCA’s response to the motion emphasized that the CPUC cannot order procurement without identifying a reliability need, that CCAs are already procuring these resources, and that emergency procurement orders risk increasing ratepayer costs. Separately, on August 13, the CPUC issued a Proposed Decision (PD) that would eliminate the ability for LSEs to use short-term bridge contracts as an alternative compliance mechanism for mid-term reliability (MTR) procurement. 3CE collaborated with CalCCA to develop comments on the PD requesting modifications to reduce ambiguity, provide LSEs with more compliance certainty, and ensure affordability benefits.

New IRP Venue
On July 2, the CPUC opened a proceeding, R.25-06-019, as a new primary venue for oversight of the IRP process, including the next individual LSE IRP filings. The CPUC will also take up RCPPP development and implementation in the new proceeding after adopting a directional framework in the current IRP venue.

The preliminary scoping memo for the proceeding extends the next IRP filing deadline to December 1, 2025, and potentially even later given the Commission’s delay in providing filing materials. As an initial step for the upcoming IRP cycle, the Commission issued guidance on the process for LSEs to finalize their load forecasts that will serve as the basis for individual IRPs.

Next Steps
3CE will continue to monitor the two IRP proceedings for any interim procurement order or decision on the RCPPP framework and has begun preparation for upcoming IRP compliance requirements. Per the CPUC’s direction, 3CE will submit a response to finalize its load forecast by September 12. The prehearing conference to discuss the schedule and scope of the new IRP proceeding has been set for September 29.

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

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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 June 30, 3CE submitted its Draft 2025 RPS Procurement Plan. On August 22, 3CE submitted a separate RPS Compliance Report which provides additional information on the RPS contracts within 3CE’s Procurement Plan. Separately, there is a Joint CCA effort in the RPS proceeding to advocate for the extension of the BioMAT procurement for 5 years past its current sunset date of December 31, 2025.

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. The Commission will issue a Decision on Draft 2025 RPS Procurement Plans in Q4 of 2025.

Interconnections - IPE 5.0
Issue
The California Energy Commission’s (CEC) 2023 Integrated Energy Policy Report (IEPR) identifies interconnection delays as a significant barrier to achieving California’s electrification and decarbonization goals. Ongoing initiatives led by various entities are working to address this issue and streamline processes for connecting clean resources to the grid. One such effort is CAISO’s Interconnection Process Enhancements (IPE) 5.0 initiative, focused on modifications to recent interconnection reforms aiming to prioritize and accelerate the onboarding of viable projects capable of meeting near-term reliability needs and state policy objectives. .

Status
On July 8, the CAISO issued a scoping document for the fifth iteration of the interconnection process enhancements (IPE) initiative. The initial scope included exploration of opportunities for operational Energy Only (EO) projects to seek deliverability, an outlying issue from the previous IPE initiative that CalCCA previously identified. 3CE worked with CalCCA to draft comments in support of the initial scope; advocating that if a project enters the queue and comes online as EO, it should be allowed to submit a new interconnection request for deliverability. On August 11, the CAISO held a workshop reviewing its straw proposal, which does not propose significant changes to the current process and declines to re-open a pathway for operational EO projects to seek deliverability.

Next Steps
3CE will continue tracking the initiative and encourage reform to accelerate and streamline the interconnection process. A draft final proposal for the initiative will be posted in October, which the CAISO plans to take to its Board of Governors in March for approval.

Demand and Distributed Energy Market Integration - Initiative Issue
In January, CAISO launched its new Demand and Distributed Energy Market Integration (DDEMI) initiative to explore enhancements to or development of participation models and market rules for

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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 DER to provide resource adequacy.

Status
On June 13, the CAISO published a revised Discussion Paper on the DDEMI initiative and its goals, including improving performance evaluation methodologies, enhancing economic and reliability-based participation models, and increasing opportunities for DER market participation. 3CE helped CalCCA draft comments on the Discussion Paper recommending that the CAISO study device-level measurement to consider solutions that would improve measurement and evaluation of specific device types such as behind-the-meter (BTM) batteries. CAISO has held 3 subsequent workshops on various stakeholder proposals on issues in scope, including improvements to BTM storage participation in wholesale markets.

Next Steps
The DDEMI initiative is still in an early stage, as CAISO is refining the scope of issues that it will address in 2025. CAISO will issue an updated discussion paper on stakeholder proposals related to enhancing demand flexibility market options and DER market participation, with another workshop scheduled for September 9. The working group process will culminate with proposals anticipated to go to the CAISO Board of Governor for approval in 2026. 3CE will continue to monitor the proceeding through CalCCA and advocate for improvements that benefit 3CE’s programs and customers.

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

Status
In 2024, CalCCA filed an Advice Letter (AL) to clarify certain financial reporting requirements established by the Phase 1 POLR Decision, which adopted a two-tiered reporting structure whereby all CCAs must comply with a Tier 1 requirement to provide the CPUC with audited financial information once per year, and more stringent Tier 2 reporting requirements that CCAs must comply with if certain reporting triggers are met. 3CE is not subject to any of the additional Tier 2 requirements and submitted its most recent audited financial information to the CPUC on July 1. On July 24, the CPUC approved Resolution E-5406 and adopted many of the important clarifications within CalCCA’s AL related to Tier 2 trigger conditions and notification timelines.

Next Steps
The POLR proceeding is now in Phase 2, in which the Commission is considering procedural pathways for non-IOU LSEs to apply for POLR status. A Phase 2 Decision is expected by the end of 2025 or early 2026.

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3CE will continue to monitor the proceeding and advocate for the legislatively protected autonomy of non-IOU LSEs.

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. Due to the industry-wide implications, CalCCA has taken up this case that 3CE had initially spearheaded.

Status
On July 24, the Commission adopted a Decision partly granting interim implementation of Rule 30. In response to CalCCA’s advocacy, in which 3CE has been closely involved, the Decision requires PGE to submit applications for transmission interconnection to the affected CCA and directs PG&E to send notices to customers regarding the role of CCAs as default electric service providers. On August 8, PG&E filed an Advice Letter to implement the requirements of the Decision, including the sharing of interconnection applications with CCAs. The Rule 30 proceeding remains open to establish a permanent Rule 30 process that will replace the adopted interim solution.

Next Steps
3CE and CalCCA will continue to monitor this proceeding to ensure data transparency and equitable customer treatment are upheld throughout the development of the full Rule 30 framework. Surrebuttal testimony on PG&E’s proposal, including future information-sharing processes, is due September 8.

Improvements to the Climate Credit – R.25-07-013
Issue
The California Cap-and-Trade program requires power plants, fuel providers, and large industrial facilities that emit greenhouse gases (GHGs) to retire allowances to cover their emissions. The sale of these allowances is used to benefit Californian ratepayers by funding the California Climate Credit, a twice-per-year lump-sum bill credit automatically provided to all bundled and unbundled residential electric customers. On July 28, 2025, the Commission initiated a rulemaking to consider ways to improve the effectiveness of the Climate Credit in support of customer affordability.

Status
The preliminary scope of the rulemaking includes potential modifications to customer eligibility criteria, distribution timing, and customer outreach related to the Climate Credit. While 3CE is not currently a respondent to the proceeding, CCAs are interested in participating to ensure that any changes to the Climate Credit are equitable and clearly communicated to unbundled customers.

Next Steps
3CE will continue to monitor the proceeding and may consider participation, either through CalCCA or a joint CCA initiative, if necessary to advocate for equitable outcomes for 3CE customers. Comments on

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the initial rulemaking are due by September 26.

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
PG&E 2026 ERRA Forecast - A.25-05-011
The CPUC issued a Scoping Memo setting the scope and schedule for the proceeding, placing in scope consideration of PG&E’s proposal on how to value pre-2019 banked RECs and PG&E’s proposal on SOD RA. CalCCA recommended that these issues be addressed in Phase 2 of the PCIA OIR. CalCCA plans to respond to these issues in its Intervenor Testimony, due September 2, 2025.

SCE 2026 ERRA Forecast - A.25-05-008
CalCCA submitted Direct Testimony on August 15, 2025. CalCCA argues that SCE’s Slice of Day (SOD) RA proposal should be treated only as an interim approach and that a universal methodology must be developed in the PCIA proceeding. SCE’s SOD RA method adjusts RA quantities based on assumed baseload values, but CalCCA notes there is insufficient public data to support this assumption and the PCIA proceeding is the proper venue to resolve it. CalCCA also opposes SCE’s proposal to value Renewable Energy Credits (RECs) banked before 2019 at zero if used for future compliance. CalCCA argues these RECs should be valued at the current RPS MPB, ensuring unbundled customers receive the value they paid for when the RECs were bundled, rather than losing credit for benefits not previously used.

Next Steps
CalCCA is preparing Intervenor Testimony for PG&E’s 2026 ERRA Forecast (due September 2, 2025) and Party Rebuttal Testimony for SCE’s 2026 ERRA Forecast (due September 8, 2025).

General Rate Cases — A.24-09-014; 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 GRC Phase 1 – A.25-05-009
CalCCA attended the PHC for PG&E’s 2027 GRC on July 3, 2025. PG&E did not contest CalCCA’s proposed issues for the scope, which included consideration of proper vintaging for new investments in PG&E-owned hydro facilities and the certainty required for PG&E to include Pending Loads in its distribution cost recovery request.

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PG&E GRC Phase 2 – A.24-09-014
CalCCA is preparing Intervenor Testimony in PG&E’s Phase 2 GRC, opposing PG&E’s proposed 20% increase to CCA service fees and its plan to update fees through a Tier 2 Advice Letter. CalCCA also recommends a new cost study for the outdated POLR Administrative Fee and seeks formal commitments for hourly billing-quality interval data. After PG&E admitted errors in its Marginal Distribution Capacity Cost (MDCC) calculations, the ALJ suspended the schedule and directed PG&E to file corrected testimony and a revised schedule by October 1, 2025. The delay shifts Intervenor Testimony timing but is not expected to alter CalCCA’s arguments.

SCE GRC Phase 1 – A.23-05-010
The CPUC issued a Proposed Decision in SCE’s Phase 1 GRC that delivered several CCA wins, including rejecting major fee hikes, requiring phase-out of the Electronic Data Interchange Value-Added Network (EDI-VAN) charge by 2029, scrutinizing new Utility-Owned Generation (UOG) investments in Power Charge Indifference Adjustment (PCIA) vintages, and directing billing system improvements. The PD also requires SCE to apply Rule 17 equally to bundled and unbundled customers—this rule limits how far back an IOU can bill customers when under collection is caused by its own billing errors. CalCCA filed supportive Opening Comments on August 18, 2025, urging stronger requirements to address SCE billing errors and implement Code of Conduct Audit recommendations. CalCCA also filed Reply Comments on August 25, 2025, opposing SCE and PG&E’s claim that SCE’s exclusion of unbundled customers from Rule 17 protections was a “good faith” mistake. CCAs argue that SCE’s approach unfairly forces CCA customers to pay for its billing errors, unlike PG&E and SDG&E, which apply Rule 17 consistently.

Next Steps
Parties are awaiting a Scoping Memo for PG&E’s GRC Phase 1, a modified schedule for PG&E’s GRC Phase 2, and a Final Decision in SCE’s GRC Phase 1.

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.

Status
On August 28, 2025, the CPUC adopted a Track B Decision establishing guidelines for IOUs to design demand flexibility rates under the CEC’s Load Management Standards. The decision sets standards to ensure accurate price signals and customer options that encourage load shifting while limiting bill impacts. However, it leaves unresolved how unbundled customers can participate and what systems are needed for CCAs to offer their own dynamic rates. CalCCA continues to press for IOUs to share necessary customer data and coordinate with CCAs so that DF rates can be developed and billed fairly.

Next Steps
The adopted Decision closes this proceeding. However, it directed the IOUs to file supplemental testimony regarding final design of their demand flexible rates by October 27. 3CE staff will participate in a PG&E rate design working group to ensure the design and adopted billing structure does not inhibit a CCAs ability to set their own demand flexible rate.

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Integrated Energy Policy Report 2025 –25-IEPR-03
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 and make other considerations on the State’s energy policies and goals. The IEPR forecast is a key input in the electric system planning and is used by the CPUC to inform procurement obligations for LSEs. The report is developed through a collaborative process where the CEC hosts a series of workshops and solicits stakeholder feedback.

Status
Over the summer, 3CE staff attended multiple workshops and helped submit comments with CalCCA on August 20, following stakeholder and CEC presentations on the energy demand forecast. These comments emphasized the importance of accurate forecasting for determining LSE’s individual procurement obligations, especially in the light of increased uncertainty surrounding potential demand from data centers. The comments recommended that the Commission establish a dedicated procedural path to develop a more granular, transparent, and certain framework for demand forecasting, taking into account the unique challenges presented by these new large loads.

Next Steps
As the default providers in their service territories, CCAs are working together to determine how this load should be allocated amongst LSEs to ensure grid reliability while also keeping customer rates affordable. As the Commission develops the 2025 IEPR, 3CE will continue to work closely with CalCCA to advocate on behalf of CCAs and their customers. The final draft forecast will be released in November and adopted early next year.
3CE LEGISLATIVE REPORT – Summer 2025
Federal Legislative Developments:

The recent passage of H.R.1 coupled with Executive Orders has the potential to seriously impact the deployment of renewable energy:
 H.R.1 removes Investment and Production Tax Credits for wind and solar projects that are not online by December 31, 2027, (unless construction begins before July 4, 2026).  Solar, wind, and storage projects are being impacted by Executive Orders that require discretionary approval by the Secretary for routine permits if any Bureau of Land Management managed right-of-way is involved.
 The above will undoubtedly thwart projects that were slated to be in production post-2028.  Energy demand continues to rise, this supply/demand issue will almost certainly raise energy prices.

H.R.1 significantly cuts federal tax incentives for homes and businesses:
 The Clean Vehicle Credit ($7,500), Previously Owned Clean Vehicle Credit ($4,000), and Commercial Clean Vehicle Credit ($7,500/$40,000) will end for vehicles acquired after September 30, 2025. The IRS has issued guidance allowing delivery to occur after that date, provided the sale and contract are executed beforehand.  Tax credits for building electrification are set to expire after December 31, 2025, including the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit.

The California Attorney General is already challenging some federal actions, which has successfully preserved federal transportation funds allocated to charging infrastructure in highway projects.

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On a positive note:
 Despite the avalanche of federal policy changes intending to hobble renewable energy, it does not appear to have yet impacted near-term new production or, most conspicuously, investment.  While coal use went up an alarming 16.8% in the first half of 2025, solar boomed by 37.6%, and natural gas contracted (from the largest base) by 3.7%.  Renewables made up 25% of US electricity in that period, and if you include nuclear, carbon free energy is now up to 43%.
 Bloomberg recently reported that fossil fuel investment by the top six US banks fell by 25% thus far this year.

State Legislative Developments:

As the 2025–26 California legislative session enters its final stretch, significant negotiations and decisions remain ahead:
 The first week back from Summer Recess was dominated by the redistricting proposal and special election authorization.
 3CE’s top legislative priority, the establishment of a regional energy market called The Pathways Initiative (SB 540), still includes the “poison pill” amendment as of the end of August, but the Governor has made it a priority for his affordability and renewables agenda. Staff remains optimistic about the bill’s passage.
 Though this year has seen the most significant policy proposals in energy in many years, a complex mix of Pathways and each house’s affordability packages remain intertwined in negotiation, with two weeks to go.
3CE and CalCCA have been actively engaged in advocating for, proposing amendments to, and addressing the impacts of the following bills:
 AB-303 Battery energy storage facilities. - Staff continues to monitor this bill.  AB-825 Energy: electricity. - Staff continues to monitor this bill as a part of the Affordability Package.
 SB-254 Electricity: wildfire mitigation: rate assistance: Policy-Oriented and Wildfire Electric Reimbursement (POWER) Program. - Staff continues to advocate for the provisions of this bill as a part of the Affordability Package.
 SB-283 Energy storage systems. - 3CE supports this bill and the safety regulations it applies to battery energy storage systems.
 SB-540 Independent System Operator: independent regional organization: California Renewables Portfolio Standard Program. – The majority of staff advocacy efforts this year have focused on this bill, which aims to improve the long-term stability of customer bills, expand renewable energy use across participating states, and strengthen grid reliability. The proposal also includes safeguards for the state’s clean energy goals, earning the support of many labor and environmental groups that had previously opposed it.

Since June 1, staff has engaged with nine state-level elected officials and/or their representatives to advance our priority initiatives. Additional meetings are scheduled to occur prior to the end of session.

In addition, staff are monitoring legislation related to transmission and infrastructure streamlining, including:
 AB-745 Electricity: climate credits.

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 AB-854 California Environmental Quality Act: exemptions.  AB-941 California Environmental Quality Act: electrical infrastructure projects.  AB-1408 Electricity: interconnections.
 SB-330 Electrical transmission infrastructure: financing.

Community Relations Recap:

In 2025, the Community Relations team delivered Annual Updates to member agencies, highlighting 3CE’s progress toward 100% renewable energy, community-specific investments, and key legislative priorities. To date, presentations have been completed or scheduled with 31 member agencies.

Since June 1, staff have met with several key local and statewide stakeholder organizations, including:
 California Environmental Justice Alliance
 Community Environmental Council
 Ecology Action
 Indivisible Monterey
 The Monterey Peace and Justice Center
 Santa Barbara South Coast Chamber of Commerce Government Affairs Committee on Electricity Reliability and Quality
 Sierra Club Santa Lucia Chapter
 SLO Climate Coalition

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Staff Report Item 7
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Gina Urmatan, Senior Accountant
SUBJECT: Financial Report for the period of October 1, 2024, through June 30, 2025 DATE: September 18, 2025
RECOMMENDATION:

Receive a financial report for the period October 1, 2024, through June 30, 2025.

SUMMARY:

Over the nine months ending June 30, 2025, operating revenues amounted to $460.9 million, and operating expenses totaled $396.5 million for a net operating income of $64.3 million. Non-operating revenue of $8.3 million, driven by interest and investment returns, netted the month with a total net position increase of $72.6 million.

Year-to-date operating revenue is $58.8 million below budget, primarily due to a lower-than-expected retail load 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 variance of $3.0 million from higher-than-anticipated investment yields.

Year-to-date total revenue (operating & non-operating revenue) is $55.7 million lower than the budget, an unfavorable variance of 11%.

Year-to-date operating expenditures, excluding capital outlay, are $42.3 million below budget, a variance of 10%. This variance is primarily attributable to lower-than-anticipated energy costs, which came in $33.4 million under budget. The reduction in energy expenses compared to the budget reflects a convergence of factors, including lower market prices, higher-than-expected wholesale energy sales, and increased revenue from congestion revenue rights. Additionally, Renewable Portfolio Standard

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(RPS) compliance expenditures are below budget due to lower market prices for these attributes. Higher resource adequacy (RA) costs partially offset these favorable impacts because of elevated market prices.

Non-energy operating costs were $8.9 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 $10.0 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 expenditure, including capital outlay, is $52.2 million lower than the budget, a favorable variance of 12%.

The net position at the end of June 30, 2025, totaled $290.8 million, a $72.6 million increase from the start of the fiscal year. The increase is primarily due to higher deposits held by counterparties to meet collateral requirements, accrued revenue, accounts receivable, and capital assets. The increase is further supported by a reduction in accrued electricity costs, other accrued liabilities, and security deposits from counterparties. Cash, cash equivalents, and investments totaled $224.9 million, a $1.8 million decrease from the start of the fiscal year. The reduction in liquidity was largely attributed to the elevated cost of electricity invoices, including the prepayment of expenses for RA in the month of June.

FISCAL IMPACT:

There is no financial impact associated with receiving this report.

ATTACHMENT(S):

1. June 30, 2025 Financial Report

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FINANCIAL REPORT
Fiscal Year to Date
As of June 30, 2025

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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 June 30, 2025, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the nine 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
July 24, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com

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Current assets
Cash and cash equivalents $ 130,551,308
Accounts receivable, net of allowance 50,478,920
Accrued revenue 39,032,629
Other receivables 1,872,696
Investments 81,853,991
Prepaid expenses 9,190,100
Deposits 33,009,121
Loan receivable 194,301
Total current assets 346,183,066
Noncurrent assets
Investments 12,513,045
Deposits 21,055
Loan receivable 1,135,778
Capital assets, net of depreciation and amortization 6,444,386 Total noncurrent assets 20,114,264
Total assets 366,297,330
Current liabilities
Accrued cost of electricity 57,171,935
Accounts payable 3,677,493
Other accrued liabilities 1,935,385
User taxes and energy surcharges due to other governments 2,023,181 Security deposits - energy suppliers 759,299
Lease liability 344,859
Total current liabilities 65,912,152
Noncurrent liabilities
Security deposits - energy suppliers 9,050,025
Lease liability 580,208
Total noncurrent liabilities 9,630,233
Total liabilities 75,542,385
Net investment in capital assets 5,519,319
Unrestricted 285,235,626
Total net position $ 290,754,945

NET POSITION
As of June 30, 2025

STATEMENT OF NET POSITION

CENTRAL COAST COMMUNITY ENERGY
ASSETS

LIABILITIES

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OPERATING REVENUES
Electricity sales, net 452,709,844$
Liquidated damages 8,101,745
Other income 70,337
Total operating revenues 460,881,926

OPERATING EXPENSES
Cost of electricity 368,142,933
Contract services 10,620,624
Staff compensation 7,376,991
Program incentives 8,380,730
Other operating expenses 1,573,069
Depreciation and amortization 453,970
Total operating expenses 396,548,317
Operating income (loss) 64,333,609

NONOPERATING REVENUES (EXPENSES)
Investment income 8,291,701
Interest and financing costs (35,808)
Nonoperating revenues (expenses) 8,255,893
CHANGE IN NET POSITION 72,589,502
Net position at beginning of period 218,165,443
Net position at end of period $ 290,754,945
Nine Months Ended June 30, 2025

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CENTRAL COAST COMMUNITY ENERGY

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CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 446,383,985$
Receipts of liquidated damages 8,101,745
Other operating receipts 18,899,322
Receipts of deposits and collateral 47,109,302
Payments to suppliers for electricity (410,484,101)
Payments for other goods and services (10,652,552)
Payments for deposits and collateral (68,860,259)
Payments for program incentives (10,545,625)
Payments for staff compensation (6,932,007)
Payments of taxes and energy surcharges to other governments (7,753,232) Net cash provided by operating activities 5,266,578

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments of lease liability (277,693)
Purchases of capital assets (3,010,528)
Net cash provided (used) by capital and related financing activities (3,288,221)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 5,435,782
Proceeds from sales and maturities of investments 114,977,000 Principal payments received of loan receivable 190,718
Purchase of investments (142,570,230)
Net cash provided (used) by investing activities (21,966,730) Net change in cash and cash equivalents (19,988,373)
Cash and cash equivalents at beginning of year 150,539,681 Cash and cash equivalents at end of period $ 130,551,308 Unrealized appreciation (depreciation) and
timing differences in investment income $ 2,855,919
Nine Months Ended June 30, 2025

STATEMENT OF CASH FLOWS

CENTRAL COAST COMMUNITY ENERGY

NONCASH INVESTING ACTIVITES

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Operating income (loss) $ 64,333,609
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation and amortization expense 453,970
(Increase) decrease in:

Accounts receivable, net of allowance (6,041,025)
Accrued revenue (8,084,097)
Other receivables 4,624,734
Prepaid expenses (7,360,876)
Deposits (21,338,365)
Increase (decrease) in:

Accrued cost of electricity (19,601,311)
Accounts payable (1,226,603)
Other accrued liabilities 1,103,609
User taxes and energy surcharges due to other governments 46,033 Security deposits - energy suppliers (1,643,100)
Net cash provided by operating activities $ 5,266,578

CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
Nine Months Ended June 30, 2025

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY OPERATING ACTIVITIES

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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 nine months ended June 30, 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.

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

Maher Accountancy
San Rafael, CA
July 24, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com

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

REVENUES AND OTHER SOURCES
Electricity sales, net $ 62,433,645 $ 70,081,074 $ (7,647,429) -11% $ 452,709,844 $ 519,621,398 $ (66,911,554) -13% $ 745,962,356 $ 293,252,512 Revenue for damages - - - na 8,101,745 - 8,101,745 n/a - (8,101,745) Interest and investment returns 975,268 583,333 391,935 67% 8,291,701 5,249,997 3,041,704 58% 7,000,000 (1,291,701) Other income 6,016 5,700 316 6% 70,337 51,300 19,037 37% 68,400 (1,937) Total revenues and other sources 63,414,929 70,670,107 (7,255,178) -10% 469,173,627 524,922,695 (55,749,068) -11% 753,030,756 283,857,129 EXPENDITURES AND OTHER USESCurrent Expenditures
Cost of energy 54,009,103 56,665,561 2,656,458 5% 369,422,136 402,814,719 33,392,583 8% 665,267,116 295,844,980 Salaries and benefits 947,163 1,048,820 101,657 10% 7,376,991 9,439,381 2,062,390 22% 12,585,842 5,208,851 Services and supplies 2,752,390 2,931,483 179,093 6% 19,572,912 26,383,343 6,810,431 26% 35,177,798 15,604,886 Capital outlay 13,790 1,443,167 1,429,377 99% 3,043,468 12,988,500 9,945,032 77% 17,318,000 14,274,532 Total current expenditures 57,722,446 62,089,031 4,366,585 7% 399,415,507 451,625,943 52,210,436 12% 730,348,756 330,933,249 Surplus (deficit) $ 5,692,483 $ 8,581,076 $ (2,888,593) $ 69,758,120 $ 73,296,752 $ (3,538,632) $ 22,682,000 $ (47,076,120) Annual

CENTRAL COAST COMMUNITY ENERGY

BUDGETARY COMPARISON SCHEDULE
One Month and Nine Months Ended June 30, 2025
Month
Variance
Favorable
(unfavorable)
Year-To-Date
Variance
Favorable
(unfavorable)

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Budget Item YTD Variance Comment
Electric Sales Revenue (12.9%) 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 (8.3%) 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 (21.8%) Staffing expenses are under budget due to the timing of new hires.

Professional Services (26.6%) This category includes accounting, IT, technical and other consultants.

Legal Costs (54.5%) This category includes outside legal costs for regulatory and energy procurement needs.

Marketing and customer enrollment (20.1%) Variance is mostly due to the lower than anticipated costs of recent customer enrollments.

Data Management Services 0.6% These fees non-discretionary and are charged on a per customer basis.

Utility Service Fees (5.9%) These are PG&E and SCE fees charged on a per customer basis.

Other General & Administrative (62.0%) This category includes occupancy costs, industry membership dues, and other general and administrative costs.

Energy and Related Programs (19.2%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items

CENTRAL COAST COMMUNITY ENERGY
October 1, 2024 through June 30, 2025

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Return of Investments YTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CASH AND CASH EQUIVALENTSRiver City Bank/ Chase - Money Market and other Interest Earning AccountsFunds Invested - Average Balance 99,664,821$ 114,669,913$ 87,375,820$ 86,192,993$ 97,066,887$ 102,454,815$ 111,974,304$ 107,649,306$ 103,295,944$ Gains/Losses/Interest 3,269,816$ 380,768$ 421,162$ 324,104.99 317,642.68 320,213.20 371,348.25 391,318.15 386,324.48 356,934.61 Average APY 4.58% 4.41% 4.45% 4.42% 3.96% 4.35% 4.19% 4.31% 4.15%INVESTMENTSSchwab/FidelityFunds Invested - Average Balance 125,703,797$ 126,158,519$ 126,652,212$ 127,096,361$ 127,561,770$ 127,989,614$ 128,449,074$ 128,806,745$ 129,263,682$ Gains/Losses/Interest 3,868,280$ 451,482.54 308,267.24 504,316.11 576,572.23 414,554.41 494,803.49 379,880.26 240,759.17 497,644.42 Average APY 4.31% 2.93% 4.78% 5.44% 3.90% 4.64% 3.55% 2.24% 4.62%

CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2024 through June 30, 2025

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Current 0 - 30 Days 31 - 60 Days 61 - 90 Days > 91 Days A/R Balance $ 26,299,951 $ 12,875,559 $ 2,453,355 $ 2,373,041 $ 6,477,014 $ 50,478,920

CENTRAL COAST COMMUNITY ENERGY
Summary of Accounts Receivable, Net of Bad Debt Allowance As of June 30, 2025

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Staff Report Item 8
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Thomas White, Accountant
SUBJECT: Investment Performance Report for the period of October 1, 2024, through June 30, 2025
DATE: September 18, 2025
RECOMMENDATION:
3CE investment performance report for the period of October 1, 2024, through June 30, 2025.

BACKGROUND:

As of June 30, 2025, Central Coast Community Energy held $224.9 million across its operating and investment accounts. The agency’s investment strategy remains conservative and compliant with the Investment Policy and the California Government Code, prioritizing liquidity, preservation of capital, and a passive investment approach. The portfolio's structure is designed to support day-to-day operating needs, meet collateral calls, and maintain reserves for strategic and rate stabilization purposes.

DISCUSSION/ANALYSIS:
3CE ended the quarter on June 30, 2025, with investment holdings that followed the Investment Policy and the strategy of holding enough cash to meet operating costs, including counterparty collateral calls.

The strategy consists of holding three different classes of funds: cash to meet ongoing operating costs, liquidity reserves to meet collateral calls and unforeseen costs, and short-term investments to meet reserves, including the strategic reserve and energy rate stabilization funds. As of June 30, 2025, 3CE held $224.9 million in operating and investment accounts. The table below lists the cash and investment balances by account type.

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Cash and Investment Mix Holdings by Institution
Account Type Institution Balance Investment Mix
Operating
River City Bank $86,507,256
Cash (sweep) - $58.4M
money market - $23.9M
cash (operating) - $4.0M
Chase $9,258,690 cash (held for collateral)
Investment
Schwab $63,939,260
Treasuries - $58.6M
cash (sweep) - $5.0M
money market - $0.3M
Fidelity $65,201,585 Treasuries - $59.8M
money market - $5.4M
Total $224,906,792
The investment strategy is passive, where fixed-income holdings such as Treasury notes and bills are held to maturity, and 3CE receives the coupon income and discount. As of June 30, 2025, 3CE served as investment manager of the $129.1 million held in the Schwab and Fidelity brokerage accounts. The average annual percentage yield for Treasuries ranged from 3.75% to 4.56% over the third quarter.

Treasuries with a maturity date of less than one calendar year accounted for 85% of holdings. Three Treasuries with a combined market value of $12.3 million have a maturity date in Q3 of 2026. One Treasury with a market value of $5.0 million has a maturity date in Q2 of 2027. All investment holdings managed are high-grade rated investments or higher.
3CE’s investment mix aligns with the Investment Policy and California Government Code. As of June 30, 2025, 3CE held $76.9 million in cash and cash equivalents, $118.4 million in U.S. Treasuries, and $13.2 million in money market funds. Aside from money market funds, all other investment types do not have state investment limits. The State code limits money market funds to 20% of the portfolio. 3CE is within the State limit at 13.2%.

Cash and Investment Mix Holdings
Type Market Value
% of
Portfolio
Permitted by
CA Government Code
Cash and cash equivalents $76,904,389 34.2% 100%
Money Market Funds $29,582,953 13.2% 20%
U.S. Treasuries $118,418,474 52.7% 100%
Total $224,906,792 100.0%
The FY 2024-25 Adopted Budget, with appropriations of $730.3 million, included estimated investment revenues of $7.2 million. In the third quarter, investment earnings from operating and investment accounts netted $7.3 million, $3.3 million from interest on cash and money market accounts, and $3.9 million from short-term investments, mostly from Treasuries. Interest earned on 3CE collateral held by

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counterparties totaled $1.0 million. To date, the total investment and interest earnings from internal liquidity and counterparty collateral are $8.3 million. Based on the mid-year budget forecast, revenue from interest and investment earnings is estimated to total $10.8 million based on current market yields.

As of June 30, 2025, 3CE has 115 days of cash on hand. This is based on the total cash and equivalents of $224.9 million divided by an average daily expense of $1.9 million. Total operating expenses for FY 2024- 25, less depreciation, are $712.4 million.

FISCAL IMPACT:

There is no fiscal impact to receiving this report
CONCLUSION:
3CE proactively diversified its financial institutional partners while strategically deploying cash and short-term investments to capture favorable yields, while retaining liquidity for ongoing operating costs and collateral calls.

ATTACHMENT(S):

None.

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Staff Report Item 9
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: CEO Report
DATE: September 18, 2025

COMMUNITY ADVISORY COUNCIL REPORT
At a September 2, 2025 special meeting, the Community Advisory Council (CAC) received updates on federal policy impacts, ongoing energy program performance and pilot projects. Staff reported on the implications of HR 1’s passage, which reduces clean energy tax credits and federal incentives, likely increasing costs for customers. Staff also highlighted progress on the EV Charger Asset Pilot, noting completed installations and planned expansions, as well as a robust response to the RFP for a Virtual Home Energy Assessment program.

The Council also reviewed updates on 3CE’s Energy Programs portfolio, which showed strong growth in participation and incentives distributed, particularly in building electrification and underserved communities. Following discussion, the CAC unanimously approved its FY 2025–26 Workplan, which focuses on evaluating and enhancing the Agricultural Electrification Program through community focus groups, stakeholder engagement, and program design recommendations. The CAC also recommended adoption of the FY 2025–26 Energy Programs portfolio.

STATEWIDE LOAD MANAGEMENT STANDARDS
Pursuant to the California Energy Commission's (CEC) Load Management Standards (LMS), 3CE received approval from the Policy Board on February 21, 2024, to submit its plan for meeting the CEC's objectives of enhancing statewide demand flexibility and to make subsequent updates in alignment with the approved Load Management Standards. 3CE's LMS Plan, submitted on March 7, 2024, indicated that 3CE would evaluate the investor-owned utility dynamic rate pilots as a potential pathway for providing customers with marginal cost-based rates. As requested by the CEC, 3CE updated and resubmitted its LMS plan by September 17 to incorporate 3CE's participation in the California Public Utilities Commission’s expanded dynamic rate pilots and provide an update on 3CE’s engagement in the development of a Single Statewide Tool that will support customers' ability to link devices to electricity rates.

CALIFORNIA CLIMATE CREDIT
In the spring and fall of each year, millions of utility customers in California receive a Climate Credit on their electricity bills. The Climate Credit is a dividend from the state’s Cap-and-Trade program, which requires power plants, fuel suppliers, and other large industrial polluters to purchase carbon pollution allowances at auctions managed by the California Air Resources Board (CARB). The 2025 residential climate credit is $58.23 for 3CE customers in PG&E’s service territory and $56.00 for customers in SCE’s territory. The same credit amount was applied to customers’ bills in April of 2025.

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The California Public Utilities Commission has opened a new proceeding to explore potential approaches to maximize the effectiveness of the Cap-and-Trade Program for supporting customer affordability.

Proceeds from the program will continue to be available to electric and natural gas customers through at least 2030 but fluctuate from year to year depending on auction proceeds; the legislature is currently considering extension of the Cap-and-Trade Program past 2030 which could extend these ratepayer benefits further.

BIOENERGY MARKET ADJUSTING TARIFF UPDATE
On August 14, 2024, the Operations Board approved 3CE's participation in the California Public Utilities Commission's Bioenergy Market Adjusting Tariff program (BioMAT). The BioMAT program is a state-authorized procurement program initiated to encourage the development of small bioenergy projects by allowing load serving entities contracting with these projects to recover the costs from all California electricity users through the Public Purpose Programs (PPP) charge. On August 29, 3CE submitted an application for compliance review of its administration of the BioMAT program to the CPUC, including management of a BioMAT eligible contract that 3CE executed in July. This compliance filing is the first of its kind, as no other CCA has executed a BioMAT contract, and is an important initial step to ensuring 3CE's ability to seek cost recovery once the BioMAT project comes online.

END OF LEGISLATION SESSION REPORT
The 2025 legislative session is anticipated to end Saturday, September 13. Staff will provide a verbal report regarding the outcomes of energy policy matters.

ATTACHMENT(S):

1. Customer Outreach and Engagement Report

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Customer Outreach and
Engagement Report
Statistics and Activity
Central Coast Community Energy
Communications and Outreach
Submitted August 21, 2025

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2 Table of Contents
Community and Government Relations...................................................................................... 3 Key Accounts .............................................................................. Error! Bookmark not defined. 3CE Enrollment Profile............................................................................................................... 4 Call Center Statistics.................................................................................................................. 5 Opt-Outs .................................................................................................................................... 6 Media Outreach ......................................................................................................................... 7

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3 Community and Government Relations
In July, staff delivered an annual update at public meetings with the County of Santa Barbara, the City of Santa Maria, the City of Marina, the City of Greenfield, the City of Buellton, the City of Carpinteria, the City of San Luis Obispo, the City of Arroyo Grande, the City of Guadalupe, the City of Atascadero, and the City of Capitola. Staff also met one-on-one with 11 local elected officials.

State advocacy focused on SB 540, AB 306, SB 283, AB 825, and RA transactability, with meetings held with four legislative offices. Staff also sent letters to the Bureau of Land Management on oil and gas leases and to Senate Leadership on funding for the California Deepwater Offshore Wind Project (CADEMO).

Following the passage of H.R. 1 staff engaged public officials with a social media and newsletter toolkit to encourage constituents to take advantage of the EV purchase tax credit before its expiration on September 30th.

Community engagement included meetings with the Sierra Club Santa Lucia Chapter, the Monterey Peace and Justice Center, and a presentation to EcoSLO and the San Luis Obispo Chamber of Commerce.

The Community and Government Relations team held a 3-day staff meeting focused on three key areas: developing strategies for sponsorships and memberships, planning advocacy efforts, and defining team responsibilities. The team also attended various events with civic leaders, providing staff the chance to build cross-regional relationships.

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4 3CE Enrollment Profile
3CE Enrollment as of August 1, 2025 3CE Load by Rate Class Town or Territory Total Meters
Eligible
Accounts
Eligible
Load
%
AGR
%
COMM % RES
ARROYO GRANDE 8,142 93.9% 93.7% 0.5% 49.7% 49.8%
ATASCADERO 12,413 88.5% 89.5% 0.0% 47.3% 52.7%
BUELLTON 2,254 96.4% 94.9% 1.6% 73.5% 24.9%
CAPITOLA 5,810 96.1% 94.8% 0.0% 57.1% 42.9%
CARMEL 3,750 97.6% 98.2% 0.0% 51.6% 48.4%
CARPINTERIA, 5,841 94.8% 90.7% 1.1% 59.0% 39.8%
DEL REY OAKS 807 95.2% 97.0% 1.9% 38.0% 60.1%
GOLETA 13,344 94.1% 95.2% 0.7% 76.1% 23.2%
GONZALES 2,039 86.9% 97.7% 61.4% 24.3% 14.3%
GREENFIELD 4,277 87.3% 97.0% 58.2% 22.4% 19.4%
GROVER BEACH 6,371 96.1% 97.4% 0.1% 43.0% 57.0%
GUADALUPE 2,656 97.3% 99.3% 55.7% 19.7% 24.7%
HOLLISTE 13,254 88.7% 93.8% 7.5% 52.3% 40.3%
MARINA 9,123 93.7% 93.6% 0.0% 61.0% 39.0%
MONTEREY 14,617 95.9% 95.4% 0.0% 75.0% 25.0%
MONTEREY CO 45,294 92.3% 96.6% 42.3% 32.3% 25.4%
MORRO BAY 6,551 97.0% 96.3% 0.1% 46.1% 53.8%
PACIFIC GROVE 8,366 96.6% 97.7% 0.0% 42.7% 57.3%
PASO ROBLES 14,139 90.6% 91.0% 0.9% 60.9% 38.2%
PISMO BEACH 5,647 95.2% 96.7% 0.0% 64.3% 35.7%
SALINAS 43,060 89.2% 94.5% 17.3% 52.7% 30.0%
SAN BENITO CO 9,279 90.2% 95.8% 20.5% 50.2% 29.3%
SAN JUAN BAUTISTA 910 91.8% 94.8% 0.3% 34.4% 65.3%
SAN LUIS OBISPO 24,484 96.3% 97.3% 0.0% 69.7% 30.3%
SAN LUIS OBISPO CO 55,594 91.5% 94.8% 20.8% 37.0% 42.2% SAND CITY 413 96.0% 99.0% 0.0% 94.4% 5.6%
SANTA BARBARA CO 50,700 93.5% 79.4% 21.8% 42.5% 35.7%
SANTA CRUZ 23,492 96.6% 97.2% 0.7% 57.6% 41.6%
SANTA CRUZ CO 53,804 94.8% 95.8% 6.2% 27.7% 66.1%
SANTA MARIA 32,392 97.5% 91.5% 11.9% 56.2% 31.9%
SCOTTS VALLEY 5,155 96.4% 97.8% 0.0% 65.3% 34.7%
SEASIDE INC 10,861 94.0% 96.6% 0.0% 52.5% 47.5%
SOLEDAD INC 4,557 87.5% 94.4% 16.5% 45.0% 38.5%
SOLVANG 2,994 96.4% 96.4% 0.1% 61.4% 38.5%
WATSONVILLE 14,439 90.5% 94.3% 12.3% 59.9% 27.8%
TOTAL 516,829 93.2 92.70% 16.8% 47.3% 35.9%

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5 Call Center Statistics
July 2025
Call Volume: 1,261
Call volume has returned to normal levels since the enrollment of Atascadero and SLO County.

Spanish Language Calls: 72
22 calls taken by Spanish-speaking agents
50 calls assisted with translation services
Note: A call can be logged for multiple topics
Top 5 Call Topics Combined (SCE & PGE)
07/01/2025 – 0731/2025
Rebates 498 40%
Billing Inquiry 250 20%
Split Billing 218 17%
General Info 215 17%
Net Energy Metering 164 13%

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6 Opt-Outs
Reason Given AGR COM RES Total Percent
Decline to Provide 20 68 30 118 36.53%
Dislike Being Automatically Enrolled 1 8 78 87 26.93%
Rate or Cost Concerns 1 4 54 59 18.27%
Other 42 42 13.00%
Service or Billing Concerns 11 11 3.41%
Concerns about Government-Run Power
Agency 3 3 0.93%
Have Renewable Energy Reliability Concerns 3 3 0.93%
Grand Total 22 79 221 323 100%
Opt-Outs by Method
Method Count Percent
Spoke with Representative 66 19%
Interactive Voice Response 91 28%
Website 166 53%
Total 323 100%

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7 Media Outreach
July 2025
Facebook
 Followers: 2.18K
 Page Reach: 246K
 Page Impressions: 288K
 Post Reach: 2.56K
 New page followers: 27
 Top Performing Content: Clean energy isn’t just good for the planet—it’s good for your wallet, too. Solar and wind are now some of the most affordable sources of electricity in the U.S., and right here on the Central Coast, clean energy is already powering our homes, schools, and businesses.

Lower emissions
Stable, long-term costs
Local jobs and energy resilience
Renewable energy is working—today and for the future. #CleanEnergy #PowerForGood #3CE #Sustainability #EnergyIndependence

Facebook En Espanol
 Followers: 247
 Page Reach: 152
 Page Impressions: 601
Instagram
 Followers: 1.24K
 New Followers: 6
 Reach: 1.61K
 Top Performing Content: Charging Infrastructure Is Growing — and Better Than Ever The U.S. public charging network grew ~20% in 2024, reaching nearly 200,000 ports.

Apps help drivers easily plan trips, find chargers, and see station amenities and reviews — making the transition smoother than ever.

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8 Twitter (X)
 Followers: 1.1K
 New Followers: 7
 Top Performing Content: CCCFA is looking for a new General Manager! Lead strategy, programs & finance for this innovative energy JPA. Start: Fall 2025 Energy & bond market expertise preferred Learn more:
https://cccfa.org/news.html #CCCFA #EnergyJobs #Leadership LinkedIn
 Followers: 3.14K
 New Followers: 31
 Post Clicks: 210
 Top Performing Content: CCCFA is hiring a General Manager! The California Community Choice Financing Authority is seeking a dynamic leader to guide strategy, programs, and fiscal oversight — helping lower power costs for Community Choice Aggregators.
✅Expertise in energy & bond markets preferred
✅Independent contractor role
Apply now & learn more: https://lnkd.in/gDznE6iq
hashtag#CCCFA hashtag#JobOpening hashtag#EnergyLeadership hashtag#CleanEnergy hashtag#PublicPolicy

Earned Media
 Energy NewsData: 7/1/2025:
https://www.newsdata.com/california_energy_markets/news_in_brief/quick-bites-energy-news-roundup-for-july-1-2025/article_cc587669-e2e8-4770-9c4f-9804f3625a3c.html  Santa Barbara Independent: 7/1/2025:
https://www.independent.com/2025/07/01/looming-cuts-to-clean-energy-incentives-cast-shadow-over-santa-barbara-supervisors-meeting/  Santa Maria Times: 7/3/2025: https://santamariatimes.com/news/local/electric-off-road-landscape-equipment-demo-coming-to-hancock-college-next-week/article_a76db9c2-5a00-403b-920d-c93318580c9e.html  Santa Barbara Independent: 7/7/2025:
https://www.independent.com/2025/07/07/electric-off-road-landscape-equipment-demonstration-in-santa-maria/

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9  San Luis Obispo Chamber of Commerce:
7/16/2025:https://slochamber.org/member-news-central-coast-community-energy-hosts-a-power-up-your-property-webinar/  Santa Cruz Sentinel: 7/16/2025:
https://www.santacruzsentinel.com/2025/07/16/guest-commentary-we-need-battery-storage-but-california-must-lead-on-safety/  San Luis Obispo Tribune: 7/21/2025:
https://www.sanluisobispo.com/news/business/article310723840.html  Noozhawk: 7/27/2025: https://www.noozhawk.com/joan-hartmann-das-williams-seize-the-sun-store-the-power-defy-federal-setbacks/  Mojave Desert News: 7/29/2025:
https://www.desertnews.com/news/article_2a43bc1f-70f2-4a06-8e45- 421d20497721.html
 NewsBreak: 7/29/2025: https://www.newsbreak.com/news/4143462373962-op-ed-a-model-in-the-making-seize-the-sun-store-the-power-defy-the-setbacks

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Staff Report Item 10
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Juan Lopez, Director of Finance
SUBJECT: Adopt Resolution No. PB-2025-06 approving the Fiscal Year 2025-26 Recommended Budget
DATE: September 18, 2025
RECOMMENDATION:

It is recommended that the Policy Board adopt Resolution No. PB-2025-06 approving the Fiscal Year 2025-26 Recommended Budget.

BACKGROUND:

Annually, 3CE adopts a budget covering the fiscal year from October 1 through September 30. Attached to the memorandum is the Recommended Budget Book outlining detailed information on the Fiscal Year (FY) 2025-26 Recommended Budget, including an Executive Summary.

Over the past year, the Policy Board adopted staff recommendations through Financial Policies to guide the development of the Recommended Budget. These policies emphasize maintaining sufficient liquid reserves to support long-term operations, provide collateral for power procurement, sustain 3CE’s “A” credit rating, and mitigate the impacts of regulatory and market volatility on customer rates.

Grounded in these policy directives and 3CE’s mission, the Recommended Budget reaffirms the Agency’s commitment to serving the Central Coast with affordable, clean, and reliable electricity and electrification programs to reduce greenhouse gas emissions and strengthen our local economy. The Board’s Financial Policies and resulting Recommended Budget facilitate our mission while safeguarding rate stability in the face of evolving regulatory requirements and ongoing volatility in energy markets.

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DISCUSSION/ANALYSIS:

The FY 2025-26 Recommended Budget reflects the Agency’s eighth year of operation serving 515,000 customer accounts across all member agencies, with strong progress toward its mission of delivering 100% clean and renewable energy. At the same time, external market and regulatory conditions continue to create significant uncertainty, requiring a conservative financial approach.

Summary of the Recommended Budget
The Recommended Budget totals $588.4 million for operating and capital expenditures, funded by $587.2 million in revenues and $1.2 million from the Capital Infrastructure Reserve, supporting 59 full-time equivalent (FTE) positions. The most notable change in the budget is a $142.0 million decrease in total appropriations compared to the current year Adopted Budget, almost entirely due to reduced energy attribute costs. Cost of Energy (COE) remains 3CE’s largest and most volatile expense, representing 91% of all expenditures at $534.8 million. While lower Resource Adequacy (RA) and Renewable Portfolio Standard (RPS) energy attribute costs provide short-term relief, COE continues to be influenced by external factors such as legislative effects, supply constraints, and forward market prices. Longer-term Power Purchase Agreements (PPAs) remain an important strategy for reducing exposure to these fluctuations, with seven operational renewable projects now providing 36% of retail sales and additional projects scheduled to come online through 2029.

While the COE remains the dominant driver of 3CE’s budget, non-energy costs play a critical role in supporting operations, programs, and community engagement. The FY 2025-26 Recommended Budget allocates $14.3 million for salaries and benefits and $38.2 million for services, supplies, and community energy initiatives. Staffing investments include filling vacant positions and adding three FTEs: a Director of Legislative Affairs, an Energy Risk Analyst, and a Business Applications Developer. These positions Prior Year
Actuals
2023-24
Adopted
Budget
2024-25
Mid-Year
Estimate
2024-25
Requested Total
2025-26
Recommended
Budget
2025-26
Recommended
Change from
Adopted
Net Electricity Sales 544,358,419 745,962,355 660,909,347 620,920,150 578,022,716 (167,939,639) Interest and Investment
Returns 12,893,661 7,000,000 10,770,808 9,100,000 9,100,000 2,100,000 Other Income 98,215 68,400 8,182,430 74,592 75,000 6,600 Sub-Total Revenues 557,350,295 753,030,755 679,862,585 630,094,742 587,197,716 (165,833,039) Capital Infrastructure Reserve - 17,318,000 2,780,254 1,900,000 1,200,000 (16,118,000) Total Financing Sources 557,350,295 770,348,755 682,642,839 631,994,742 588,397,716 (181,951,039) Cost of Energy 547,248,240 665,267,116 600,074,023 534,776,255 534,776,256 (130,490,860) Salaries and Benefits 7,830,528 12,585,841 11,203,086 16,499,844 14,260,774 1,674,933 Services and Supplies 25,391,651 35,177,798 28,751,007 38,818,643 38,160,686 2,982,888 Capital Assets 585,758 17,318,000 2,780,254 1,900,000 1,200,000 (16,118,000) Total Financing Uses 581,056,177 730,348,755 642,808,370 591,994,742 588,397,716 (141,951,039) Total Budgeted Change to Net
Position (23,705,882) 40,000,000 39,834,469 40,000,000 - (40,000,000) FY 2025-26 Budget Summary

Page 112 of 173 ends

expand 3CE’s ability to influence state energy policy, strengthen financial risk management, and improve portfolio management tools.

The most significant financial risk in FY 2025-26 stems from the California Public Utilities Commission’s (CPUC) revised methodology for calculating the Power Charge Indifference Adjustment (PCIA) and significant fluctuations in year-over-year market price benchmarks for the value of energy attributes.

Initial forecasts suggest significant increases that could materially impact customer costs. To mitigate these uncertainties for customers, staff recommend maintaining current rates going into calendar year 2026 to provide enough time to monitor upcoming CPUC and IOU decisions. This cautious approach ensures that any adjustments are based on finalized information and that 3CE maintains fair and stable rates in the face of external cost pressures.

Hence, the Recommended Budget does not include a planned addition to reserves, reflecting the need to prioritize flexibility until PCIA and IOU generation rate outcomes are known. Even without new contributions, 3CE is projected to close FY 2025-26 with reserves at 43% of expenditures, an improvement driven by lower COE. Maintaining strong liquidity remains a cornerstone of financial resilience, supporting credit strength and enabling the Agency to manage unexpected market shifts. If fiscal conditions improve or there is a significant variance in the impact of the PCIA, staff will re-evaluate the potential for a mid-year reserve contribution.

Finally, the budget funds $1.2 million in capital projects through the Capital Infrastructure Reserve.

These include office improvements in San Luis Obispo and Santa Cruz to support operations and the second year of the EV Charger Asset Pilot that will expand charging infrastructure in the region. These projects align with 3CE’s broader sustainability goals while addressing community needs and operational efficiency.

The Audit and Finance Committee received a presentation on the Recommended Budget at its August 27, 2025 regular meeting. The Committee unanimously supported the Recommended Budget. The Operations Board will receive the presentation on the Recommended Budget at its September 17, 2025 regular meeting.

FISCAL IMPACT:

The Policy Board’s adoption of the 2025-26 Recommended Budget funds $588.4 million in appropriations financed by $587.2 million in estimated revenues and $1.2 million from the Capital Infrastructure Reserve, allowing 3CE to continue operations with a balanced budget.

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CONCLUSION:

It is recommended that the Operations Board support the Policy Board‘s approval and adoption of the FY 2025-26 Recommended Budget. The Recommended Budget provides financing to deliver clean and renewable energy, stabilize customer rates, and navigate evolving regulatory and energy market conditions.

ATTACHMENT(S):

1. FY 2025-26 Recommended Budget Book

2. Draft Resolution No. PB-2025-06

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RECOMMENDED BUDGET
2025-26 FISCAL
YEAR

Page 115 of 173 ends

2 About the cover: The selected images highlight the five county region 3CE serves, capturing the unique character of each county while creating a sense of collective impact. Clockwise from the upper left: Los Padres National Forest in Santa Barbara County; a vibrant agricultural field in Monterey County; the ribbon-cutting for 3CE’s new office in San Luis Obispo; the Santa Cruz Breakwater Lighthouse; and Pinnacles National Park in San Benito County. On the back cover, the theme “Powered by Community” is paired with a background of Monarch butterflies — symbolizing the truly transformational nature of our mission.

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Table of Contents
3 4
5 Leadership,
Community,
and Staff
Introduction
6 7
8 9
10 Policy Board
Operations Board
Community Advisory Council
About the Budget Process
Organization Chart
About 3CE
Our Boards
Executive Letter
Executive Summary
Financial Policies
3CE Staff Positions Schedule
Office of the CEO
Office of the General Counsel
Office of the CFO
• Finance
• Energy Risk Management
Office of the COO
• Regulatory & Compliance
• Power Supply Resources
• Data & Analytics
• Human Resources & Administrative Services
Office of the CCO
• Energy Programs
• Communications & Outreach
Annual Highlights 2024-25
Definition of Terms
FY 2025-26
Budget
Presentation
Office and
Department
Summaries
Appendices
12 14
18 26
28 30
32 33
34 36
37 38
39 40
42 43
44 48
54

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About 3CE
4 Central Coast Community Energy (3CE) is a Community Choice Aggregator (CCA) – a local public agency working to accelerate the transition to 100% clean and renewable energy.

Guided by our Boards and supported by professional staff, we serve customers across the Central Coast by providing reliable, clean, affordable electricity and electrification programs to reduce greenhouse gas emissions and strengthen our local economy.

With the successful enrollment of the City of Atascadero and the unincorporated areas of San Luis Obispo County in 2025, 3CE now includes 35 member agencies across five counties.

The agency serves over 1.2 million residents through more than 515,000 customer accounts representing approximately 93% of the region’s electricity load. In Fiscal Year 2025-26, 3CE’s projected peak load is 948 MW, and we expect to deliver approximately 5.57 million MWh of electricity to a mix of residential, commercial, and industrial customers. 3CE supports electrification in transportation, agriculture, and the built environment with our innovative, customer-focused energy programs, and invests in new renewable-energy projects to bring more clean energy onto the grid. In partnership with our customers, 3CE is strengthening grid resilience and advancing a cleaner, more sustainable future for the Central Coast.

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5 Our Boards
3CE is governed by two boards that work to guide the agency’s mission and operations: our Policy Board and Operations Board. Together, they provide oversight and leadership on behalf of our 35 member agencies, with each board composed of 19 appointed representatives.

The Policy Board of Directors is made up of local elected officials appointed by their respective jurisdictions. This board is responsible for setting the agency’s strategic direction, approving the annual budget, establishing customer rates, and authorizing major non-energy capital expenditures.

The Operations Board of Directors includes City Managers, County Administrative Officers, and other senior executives from 3CE’s member agencies. The Operations Board ensures policies are effectively implemented, provides guidance, and approves contracts and agreements.

This two-board structure ensures that both community priorities and operational expertise shape 3CE’s decisions and long-term planning. 5 Page 119 of 173
Policy Board
Dawn Ortiz-Legg
Vice Chair
County of San Luis Obispo
Fred Keeley
Chair
City of Santa Cruz
Bruce Delgado
City of Marina
Joan Hartmann
County of Santa
Barbara
Dolores Morales
City of Hollister
Alice Patino
City of Santa Maria
Kate Daniels
County of Monterey
Luz Reyes-Martin
City of Goleta
Jose Luis Barajas
City of Salinas
Monica Martinez
County of Santa Cruz
6 Angela Curro
County of San Benito
David Silva
City of Buellton
Tyller Williamson
City of Monterey
Robert White
City of Greenfield
Derek Timm
City of Scotts Valley
Carla Wixom
City of Morro Bay
Charles Bourbeau
City of Atascadero
Jim Guthrie
City of Arroyo Grande
Jimmy Dutra
City of Watsonville

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Operations Board
Jim Lewis
Vice Chair
City of Atascadero
Matt Huffaker
Chair
City of Santa Cruz
Matthew Downing
City of Arroyo
Grande
Scott Wolfe
City of Buellton
Sonia de la Rosa
County of Monterey
Mona Miyasato
County of Santa
Barbara
Carlos Palacios
County of Santa Cruz
Mali LaGoe
City of Scotts Valley
Hans Uslar
City of Monterey
David Mirrione
City of Hollister
Rene Mendez
City of Salinas
Matt Pontes
County of San Luis
Obispo
Layne Long
City of Marina
Andrea Lueker
City of Morro Bay
Megan Hunter
City of Soledad
Michael Ramirez
City of Carpinteria
Henie Ring
County of San Benito
David W. Rowlands
City of Santa Maria
Tamara Vides
City of Watsonville
7 Page 121 of 173
8 8
Community Advisory Council
Gine Johnson
Chair
County of Santa Cruz
Norman Tuitavuki
Vice Chair
County of Monterey
The Community Advisory Council (CAC) is composed of 15 community members serving three-year terms. The Council currently has five vacancies, with new appointments considered by the Policy Board at the annual meeting. The CAC provides valuable input on energy programs and outreach strategies, helping to strengthen the connection between 3CE and the diverse communities we serve across the Central Coast.

Lew Bauman
County of Monterey
Jason Sedano
County of Monterey
Rosemary Soto
County of Monterey
Richard Stedman
County of Monterey
Celina Stotler
County of San Benito
Devin Best
County of San Luis Obispo
Kris Damhorst
County of Santa Cruz
Dennis Osmer
County of Santa Cruz

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9 About the Budget Process
3CE’S ANNUAL BUDGET

IS DEVELOPED THROUGH

A FIVE-STAGE PROCESS

1. Budget Initiation
Mid-year Forecast 2.

Budget Development 3.

4. Budget Adoption
Budget Management 5.

Financial planning begins mid-year with
the development of a detailed three-year
forecast. Following this, departments
submit their proposed budgets for the
upcoming fiscal year, including a baseline
spending plan and any augmentation
requests.

The CEO reviews and prioritizes
these submissions based on accuracy,
demonstrated benefits, and alignment
with Policy Board priorities. The result is
a comprehensive and balanced budget
recommendation designed to responsibly
support 3CE’s mission and operations in
the year ahead.

The Recommended Budget for Fiscal Year
2025-26 will be presented to the Policy
Board at its annual meeting on
September 18, 2025.
• Departments
provide current-year estimates
and forecast
market outlook.
• Boards and
Audit & Finance
Committee
receive forecast.
• Departments
submit baseline
budget and
augmentation
requests.
• Policy Board
approves the
Financial Policies.
• Audit & Finance
Committee receives
the Recommended
Budget.
• Operations Board
receives the
Recommended
Budget.
• Policy Board
considers
adoption of the
Recommended
Budget.
• Management
monitors
expenditures
and estimated
revenues.
• Boards and
Audit & Finance
Committee
receive monthly
and quarterly
financial reports.

MID-YEAR

FORECAST
(MARCH-APRIL)
BUDGET

DEVELOPMENT
(MAY-AUGUST)
BUDGET

ADOPTION
(SEPTEMBER)
BUDGET

MANAGEMENT
(ONGOING)

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10 Policy Board
Chief Executive Officer
General Counsel
Board Clerk
Chief Operating Officer
Director of Human Resources
& Administrative Services
Manager of
Human Resources
Analyst
Administrative Specialist
Administrative Specialist
Director of Regulatory Affairs & Compliance
(2) Power Resources
Planners
Director of Power
Supply Resources
Manager of Energy Contracts & Settlements
Director of Data
& Analytics
(2) Policy Advisors
Manager of Energy Trading
Power Resources
Markets Manager
Power Supply Analyst
Data Engineer
Data Analyst
Manager of Information Technology
IT Specialist
Deputy
General Counsel
P
Energy Contracts & Compliance Manager
(2) Power
Settlement Analysts
Organization Chart

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11 Operations Board
Chief Communications
Officer
Chief Financial
Officer
Director of Communications
& Outreach
Director of Energy Programs
Manager of Energy Programs
Project Manager
Administrative
Specialist
(4) Energy Programs Analysts
Manager of Customer
Accounts & Services
Manager of Communications
(2) Communications Specialists
(2) Sr. Customer
Accounts Managers
(2) Customer Accounts
Managers
(2) Community Relations Managers
Director of Finance
Director of Energy
Risk Management
Energy Risk Analyst
Accountant
Senior Accountant
Sr. Billing Operations
& Rates Analyst
Billing Operations
& Rate Analyst
Principal Management
Analyst

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Executive Letter
12 To Our Esteemed Board Members, Customers,
and Community Members,
As we begin a new fiscal year, I want to express my
deep appreciation for your continued support and
leadership. Thanks to your guidance, Central Coast
Community Energy (3CE) remains steadfast in our
mission: serving our Central Coast communities by
providing reliable, clean, affordable electricity and
electrification programs to reduce greenhouse gas
emissions and strengthen our local economy.

The past year presented both opportunities and
challenges. We continued to navigate complex
regulatory developments, a monumental shift in
federal policy, a dramatic reimagining of the world
economy and ongoing volatility in energy markets. At
the same time, we celebrated meaningful progress
across all departments. Our team finalized critical
Power Purchase Agreements supporting our march
to 100% clean and renewable energy, we built the
foundation to support customers’ participation in
their energy consumption through flexible pricing and
demand-shifting pilots, and we launched new efforts
to modernize internal systems and improve customer
service. We also made great strides in supporting
customers’ efforts to reduce greenhouse gas emissions
through rebates for electric buses and cars, EV
charging infrastructure, home batteries, and new all-electric affordable housing.

As our service area expanded to include the City of
Atascadero and unincorporated San Luis Obispo
County, we emphasized community engagement and
collaboration every step of the way. Our enrollment
campaign combined direct outreach, bilingual
communications, and strong partnerships with local
leaders to ensure a smooth and informed transition for
new customers.

Internally, we’ve laid the groundwork for future growth and resiliency. This includes implementing a new
customer relationship management (CRM) system,
investing in cybersecurity upgrades, and advancing
our Energy Risk Management policies. We also
launched new training and leadership development
opportunities for staff to strengthen our organizational capacity in a competitive workforce environment.

Throughout it all, we remained transparent and fiscally responsible. We completed another successful
financial audit, maintained our “A” credit rating
with a stable financial outlook, and continued to
shape regulatory proceedings to drive outcomes
that support 3CE’s clean energy goals and all
Californian energy customers.

Since its founding, 3CE has met challenges
head-on — keeping our eyes on long-term goals
while maintaining disciplined fiscal responsibility
and a strong commitment to affordability. That
mindset will continue to guide us as we face the
road ahead. From evolving federal and state
energy policies to shifting market conditions, we
know the path forward requires vigilance. We
will continue pursuit of our goal of 100% clean
and renewable energy and the electrification
of everything while balancing customers’ need
for predicable, fair rates and the agency’s long-term financial health. We remain focused on identifying existing and emerging clean and
renewable generation resources that can meet
3CE’s goals in this highly volatile market. We
are committed to empowering our customers
through expanding access to innovative
energy programs that help households and
businesses take charge of their energy future.

The challenges are real, but so is our resolve.

With a nimble, forward-looking approach, we are
confident in our ability to adapt and thrive.

Looking ahead, we are optimistic. Our
communities are leading the way to the clean-energy future. With your continued partnership, we will build on this year’s momentum.

Thank you for your ongoing commitment to our
shared vision.

With gratitude,
September 2025
Robert M. Shaw
Chief Executive Officer
Central Coast Community Energy Page 126 of 173
13 Page 127 of 173
Executive Summary
14 Introduction
Fiscal Year (FY) 2025-26 marks 3CE’s seventh year of successfully serving Central Coast customers and its eighth year of operation. The Recommended Budget aligns with 3CE’s goals to meet 100% of retail energy demand with clean, renewable energy, deliver transformative community programs, and maintain fair and stable rates. This year is a milestone, reflecting the first fiscal year with a united Central Coast, including unincorporated San Luis Obispo County and the City of Atascadero, totaling 515,000 customer accounts. Guided by Financial Policies adopted annually by the Policy Board, 3CE prioritizes robust financial reserves, rate stability, risk management, and procurement strategies to reduce long-term customer costs.

The Recommended Budget totals $588.4 million for operating and capital expenditures, funded by $587.2 million in revenues and $1.2 million from the Capital Infrastructure Reserve, supporting 59 full-time equivalent (FTE) positions. Amid an uncertain regulatory and federal policy environment impacting energy markets, the budget adopts a conservative approach, maintaining current rates to ensure any adjustments proposed early in FY 2025-26 reflect finalized regulatory outcomes, expected to be published by October/ November 2025, preserving 3CE’s financial stability and sustainability.

FY 2025-26 Budget Summary
Prior Year
Actuals
2023-24
Adopted
Budget
2024-25
Mid-Year
Estimate
2024-25
Recommended
Total
2025-26
Recommended
Budget
2025-26
Recommended
Change from
Adopted
Net Electricity Sales 544,358,419 745,962,355 660,909,347 620,920,150 578,022,716 (167,939,639) Interest and Investment
Returns 12,893,661 7,000,000 10,770,808 9,100,000 9,100,000 2,100,000 Other Income 98,215 68,400 8,182,430 74,592 75,000 6,600 Sub-Total Revenues 557,350,295 753,030,755 679,862,585 630,094,742 587,197,716 (165,833,039) Capital Infrastructure Reserve - 17,318,000 2,780,254 1,900,000 1,200,000 (16,118,000) Total Financing Sources 557,350,295 770,348,755 682,642,839 631,994,742 588,397,716 (181,951,039) Cost of Energy 547,248,240 665,267,116 600,074,023 534,776,255 534,776,256 (130,490,860) Salaries and Benefits 7,830,528 12,585,841 11,203,086 16,499,844 14,260,774 1,674,933 Services and Supplies 25,391,651 35,177,798 28,751,007 38,818,643 38,160,686 2,982,888 Capital Assets 585,758 17,318,000 2,780,254 1,900,000 1,200,000 (16,118,000) Total Financing Uses 581,056,177 730,348,755 642,808,370 591,994,742 588,397,716 (141,951,039) Total Budgeted Change
to Net Position (23,705,882) 40,000,000 39,834,469 40,000,000 - (40,000,000) The recommended appropriations of $588.4 million represent a $142.0 million decrease from the prior year’s Adopted Budget, primarily due to reduced market-driven energy and attribute costs. Operating costs are divided between Cost of Energy (COE) and non-energy costs.

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Cost of Energy
The Cost of Energy (COE) drives the $130.5
million reduction in appropriations, yet
remains 3CE’s largest and most volatile
expense, comprising approximately 91% of
total expenditures. COE covers customer
electricity needs, regulatory compliance
products like Resource Adequacy (RA) and
Renewable Portfolio Standard (RPS) credits,
and grid operation services managed
by the California Independent System
Operator (CAISO). In recent years, delays
in new generation projects and surging
RA costs due to heightened demand and
constrained supply has amplified COE
volatility.

COE is calculated by applying contracted energy to the projected load and using forward market prices for unhedged energy. Volatility arises from external factors, including project delays, macroeconomic trends, and seasonal events like summer or fall heat waves that strain renewable sources and increase market prices. The FY 2025-26 COE decrease reflects lower RA and RPS costs resulting from both improved market conditions, implementation of 3CE’s RA hedging strategy, and new renewable generation projects coming online.

To stabilize rates and diversify its renewable portfolio, 3CE maintains long-term Power Purchase Agreements (PPAs) with seven operational renewable projects, meeting 31% of retail sales. Seven additional projects under development are expected online by 2029. 3CE plans to explore current tax-exempt PPA prepay opportunities to lock in discounted long-term power, as done in FY 2023-24, which is projected to save customers $33 million over seven years.

Non-COE Operating Costs
The budget allocates $14.3 million for salaries and benefits, up $1.7 million, driven by filling vacant positions, competitive market trends, and three new FTEs: Director of Legislative Affairs, Energy Risk Analyst, and Business Applications Developer. These roles enhance 3CE’s ability to navigate energy policies, strengthen financial resilience through risk modeling, and improve energy portfolio 15 2.4%
Capital Assets
Cost of Energy
Salaries and Benefits
Services and Supplies
FY 2025-26 Forecasted Expenses

AS A PERCENT OF TOTAL

91.1%

6.5%

0.2%

90.9%
COE Type as
% of total COE FY 2023-24
Actual
FY 2024-25
Adopted
FY 2024-25
Mid-Year
Estimate
FY 2025-26
Recommended
Energy 56% 60% 61% 80%
RA 33% 28% 33% 17%
RPS 11% 12% 6% 3%
Total 100% 100% 100% 100%

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Executive Summary (continued)
16 management via internal applications. Included are investments in professional development and Future Leadership Development programs which will foster a resilient, inclusive workplace.

Expenditures for services and supplies total $38.2 million, up $3.0 million, reflecting a 5% operating contingency per Financial Policies, enhanced data management, software needs, and external legal counsel for regulatory and contract negotiations. The budget supports 3CE’s leadership in California Community Choice Association (CalCCA) and California Community Power (CC Power), alongside community engagement through events, sponsorships, marketing, and website redesign. Energy program funding remains steady, with reallocations for new offerings and demand response initiatives, building on the Residential Battery Rebate Program’s success.

Operating Revenue
Revenues of $587.2 million, primarily from electricity sales, are $165.9 million lower than the current year’s Adopted Budget, reflecting lower COE and no planned reserve additions to counterbalance the predicted rate impacts of pending regulatory decisions. Net electricity sales of $578.0 million, down $167.9 million, are based on a 94% participation rate, a 1% uncollectable rate, and reduced retail load due to increased behind-the-meter solar, milder weather, and time-of-use pricing shifts. This reduced load increases per-unit electricity generation rates to cover Cost-of-Service (COS) requirements. Staff recommends maintaining current rates, pending clarity on Energy Resource Recovery Account (ERRA) proceedings and Power Charge Indifference Adjustment (PCIA) rates. Other revenues include $75,000 from San Luis Obispo office rentals and $9.1 million from interest and investments, up $2.1 million due to higher liquidity while expecting potential Federal Reserve rate adjustments.

Regulatory and Market Uncertainty
Maintaining stable and fair rates is central to 3CE’s mission to deliver reliable, clean energy, reduce emissions, and strengthen the local economy. The PCIA, set annually by the California Public Utilities Commission (CPUC) through ERRA proceedings is estimated to significantly impact unbundled Community Choice Aggregator (CCA) customers. In 2024, unexpected PCIA rate changes and load forecast deviations disrupted 3CE’s position in PG&E and SCE territories, necessitating staff assessment of final CPUC decisions and potential spring rate adjustments. In 2025, CPUC proceedings revised the PCIA methodology, adopting a multi-year average for the RA Market Price Benchmark (MPB). This average incorporates lower historical prices, reducing the MPB and increasing the PCIA charge. The CPUC’s decision changes in the MPB benchmark were implemented for 2026, severely limiting CCAs’ ability to plan and hedge around the dramatic changes significantly raising customer responsibility for IOU costs and challenging cost stability.

These changes are expected to provide IOU’s declining or smoothing MPBs for RA and RPS, while CCA’s have been required to be market participants paying full market prices without any benefit of smoothing. 3CE will monitor October ERRA updates and the CPUC’s final 2026 PCIA and IOU rate decisions before recommending adjusting rates, ensuring data-driven decisions. The PCIA’s unpredictability, driven by external benchmarks and IOU forecasts, poses a persistent risk to rate stability.

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Maintaining Liquidity to Meet Reserve Targets
Prudent financial management is core to 3CE’s ability to navigate market and regulatory uncertainty. The FY 2025-26 Recommended Budget does not include a planned addition to net position for the purpose of increasing cash reserves by September 30, 2026. This conservative approach reflects the current rate and market outlooks and the need to first evaluate the impacts of the CPUC’s final 2026 PCIA and IOU generation rate decisions before committing funds to reserves. If the final PCIA rates are lower — and IOU generation rates higher — than projected, staff will assess the resulting improvement in financial position and determine whether a mid-year reserve contribution is appropriate to recommend to the Board.

Absent a reserve contribution this year, 3CE is projected to close FY 2025-26 with reserves at 43% of expenditures, an improvement from the prior year driven primarily by lower Cost of Energy (COE) rather than new reserve funding. At its March 19, 2025 meeting, the Policy Board directed staff to take proactive steps to mitigate PCIA-related volatility, including collaboration with CalCCA and active engagement by the Executive Committee, Audit & Finance Committee, and Energy Risk Management Committee to develop both strategic and regulatory solutions.

Pursuing these strategies is essential to addressing near-term PCIA volatility and to offering fair and stable rates. Central to this effort is the continued growth of the Energy Rate Stability Reserve, which provides the financial capacity to absorb revenue impacts in challenging years while maintaining fair and stable rates for 3CE customers. By building this reserve alongside regulatory advocacy and market strategies, 3CE strengthens its ability to manage risk, stabilize rates, and protect the long-term interests of the communities it serves, all while ensuring a continued positive outlook by credit rating agencies which view strong liquidity as a key factor in assessing financial stability.

Capital Projects
Capital improvements enhance 3CE’s assets and operational efficiency. The Capital Infrastructure Reserve (CIR) funds $1.2 million in projects, including $500,000 for tenant improvements at the San Luis Obispo and Santa Cruz offices, supporting staff and Policy Board needs, and $700,000 for the EV Charger Asset Pilot. This pilot expands Level 2 and DC Fast Charging stations, addressing transportation emissions, with a potential site in downtown Santa Maria. These investments, pending Board approval, support long-term efficiency and sustainability.
17 Page 131 of 173
Financial Policies
18 1.0 Purpose and Background
The prudent and responsible stewardship of public assets is a principal obligation of 3CE officials and managers. The development and maintenance of financial policies enable 3CE officials to protect those public assets, ensure transparency, and build public trust. Financial policies define a shared understanding of how 3CE administers its financial affairs and communicates how the agency manages its resources to provide the highest value to the communities served.

This document centralizes 3CE’s financial policies and establishes a framework for overall fiscal planning, management, and decision-making related to public assets controlled by 3CE. These policies are reviewed, updated, and brought before the Policy Board as needed but at least annually for adoption.

This continued review and adoption promotes sound financial management and helps maintain 3CE’s stability, efficiency, and effectiveness by ensuring the Policy Board’s financial policy guidance is provided before 3CE takes any financial actions. The policies also offer guidelines for evaluating both current activities and proposals for future programs and direct 3CE’s financial resources toward meeting its objectives and strategic initiatives.

These policies provide general guidance in the management of 3CE’s fiscal affairs and are to be used by all 3CE employees to meet their obligation to operate in a financially prudent manner. The Recommended Budget is developed in accordance with this framework.

2.0 General Financial Policy
The cornerstone and highest priority of 3CE’s financial policies is fiscal integrity. It shall be the goal of 3CE to achieve a strong financial condition with the ability to:
• Sustain adequate financial liquidity to meet normal operating and contingent obligations; • Ensure a sufficient financial base is maintained to withstand local, regional, national, and global economic impacts;
• Foster the ability to adjust efficiently to the community’s changing service requirements; • Maintain and improve infrastructure and capital assets; • Regularly review programs and operational methods to improve processes that result in higher productivity and eliminate repetitive and duplicative functions; • Encourage collaboration with other government entities, the private sector, and public-private partnerships where cost and risk are minimized in the delivery of services within 3CE’s service area; • Promote sharing of costs and benefits by service users; • Ensure the legal use of financial resources through an effective system of internal controls; • Support sound financial management by providing accurate and timely information on 3CE’s financial condition; and
• Provide a framework for the wise and prudent use of debt financing and maintain a strong credit rating in the financial community.

2.1 THE ANNUAL BUDGET
The Chief Executive Officer (CEO) will recommend a balanced budget that:

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19 Subheader • Aligns annual expenditures with the revenue requirement established through a cost-of-service methodology;
• Minimizes reliance on reserves and one-time funding sources for ongoing operations; and • Maintains competitive, market-based rates while supporting 3CE’s renewable energy goals. • Through the CEO, the Chief Financial Officer (CFO) will consult with 3CE Officers and seek their input in developing the Recommended Budget through cooperative discussions and financial education. • The CEO will keep the Policy Board apprised of the condition of 3CE’s finances and emerging fiscal issues.
• Through the CEO and Officers, 3CE will work with the California Community Choice Association (CalCCA), state representatives, legislative advocates in the State Capitol, and other local government organizations to ensure our community voice is heard regarding any state legislation or regulation affecting our stakeholders.

3.0 Roles and Functions

3.1 ROLE OF CHIEF EXECUTIVE OFFICER
The CEO serves as the chief policy advisor to the Policy Board, Operations Board, and the various Board committees. The CEO promotes responsible resource allocation, strives to protect 3CE’s financial position and integrity, and provides independent analysis on policy and financial issues. The CEO is the fund manager for the 3CE Enterprise Fund and any other funds that may be created.

3.2 PRINCIPAL FUNCTIONS OF THE CHIEF EXECUTIVE OFFICER
Principal functions of the CEO include:
• Promoting continuous improvement of the structures, systems, processes, and effectiveness of programs;
• Preparing the annual financial plan (Recommended Budget); • Working with departments to evaluate potential federal, state, and local budget impacts; • Developing financial forecasts;
• Monitoring revenues and expenditures for conformance with the annual budget; • Recommending effective fiscal policies to carry out 3CE’s mission; • Verifying Policy Board policies are consistently applied; and • Ensuring items brought before the Policy Board are transparent, accurate, complete, fully justified, and reviewed by appropriate stakeholders.

3.3 PRINCIPAL FUNCTIONS OF THE CHIEF FINANCIAL OFFICER
The CFO is 3CE’s Policy Board-appointed Treasurer and considered the subject-matter expert for the financial management of the agency. The CFO is responsible for:
• Carrying out financial operations efficiently and cost-effectively while adhering to all 3CE, state, and federal laws, regulations, and policies;
• Preparing budgets and financial estimates with attention to accuracy based on financial expertise, 3CE, state, and federal funding changes, and economic indicators affecting revenues, expenditures, Page 133 of 173 20 Subheader and service levels;
• Reviewing, evaluating, and assessing potential federal and state budget issues that may impact the agency;
• Developing and performing financial forecasts;
• Overseeing Middle Office responsibilities as identified in 3CE’s Energy Risk Management Policy; • Monitoring monthly revenue, expenditure, and cash-flow performance and conformance with the Adopted Budget;
• Meeting the Policy Board’s strategic financial initiatives and policies; and • Ensuring items brought before the Policy Board are transparent, accurate, complete, fully justified, and reviewed by all appropriate stakeholders.

3.4 PRINCIPAL FUNCTIONS OF THE AUDIT AND FINANCE COMMITTEE The Audit and Finance Committee’s principal functions include receiving staff updates on financial issues affecting 3CE and providing oversight and direction to staff in developing and modifying the budget and audits.

3.5 PRINCIPAL FUNCTIONS OF THE ENERGY RISK MANAGEMENT COMMITTEE The Energy Risk Management Committee is formed by the CEO to implement and maintain the Energy Risk Management Policy, which requires 3CE to maintain sufficient financial reserves to:
• Establish long-term business sustainability;
• Build collateral for power procurement activities;
• Maintain an investment-grade credit rating;
• Develop funding sources for investment in generation and other local initiatives; and • Reduce the business and customer impact of year-to-year volatility in energy markets and procurement costs.

4.0 Services and Fund Structure

4.1 ENTERPRISE FUND
3CE operates as an enterprise fund. The enterprise fund accounts for revenues and expenditures for all 3CE activities. The fund’s operations are financed and operated like private business enterprises, where services provided are primarily funded through user charges (electric generation rates).

4.2 PROPRIETARY FUND
An enterprise fund is classified as a proprietary fund and is financed and operated like private business enterprises whose services are primarily funded through user charges.

4.3 EXPENSES
Enterprise-fund expenses and revenues will be established at sufficient levels to properly maintain the fund’s infrastructure and provide significant capital development.

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21 Subheader

4.4 RATE STRUCTURE AND NET POSITION
The enterprise fund will maintain an adequate rate structure to cover the cost of all operations, including cash flow, capital replacement and maintenance, debt service if applicable, contingency funding, reserve contributions, and depreciation. Rates may be offset from the available unreserved net position only after these requirements are met.

5.0 Operating Budget

5.1 THE BUDGET
The Recommended Budget is the central financial planning document that sets the agency’s goals, objectives, priorities, levels of service, and the associated operating revenue and expenditures.

Appropriations are recommended based on the relationship between expected expenditures and revenue. If revenues are estimated to fall below expected amounts, the agency will take all actions available to reestablish a revenue and expenditure relationship that conforms to the operating requirements.

The Recommended Budget shall be presented to the Policy Board for adoption in September of each year and clearly presented to a general audience of the public. The Recommended Budget may be modified as necessary by the Policy Board during the fiscal year.

5.2 BALANCE BUDGET
A budget is balanced when the total estimated financing sources (beginning fund balance plus revenues) equal the total appropriations (expenditures). At no time shall spending in a given year exceed total current estimated revenues plus any net positive position (reserved and non-reserved).

5.3 ONGOING OPERATIONS NEEDS
3CE will adequately fund ongoing maintenance and operational needs with ongoing annual revenue.

Without prior direction and approval by the Policy Board, the use of one-time revenues or short-term borrowing is not allowed as a resource to finance ongoing operational needs.

5.4 CAPITAL FACILITIES AND EQUIPMENT
3CE shall establish as a primary fiscal responsibility the acquisition, preservation, maintenance, improvement, and, when applicable, orderly replacement of 3CE’s capital facilities and equipment. 3CE shall endeavor to purchase a permanent headquarters and appropriate regional offices to provide continuity of location and operations while stabilizing and controlling facility costs into the future. 3CE will acquire and maintain high-quality equipment to maximize useful life and ensure efficient operations.

5.5 APPROPRIATIONS AND TRANSFERS
The agency enterprise fund is not constrained by appropriation controls. The CEO is charged with maintaining the relationship between financing uses and financing sources and shall report to the Policy Board any deviation in excess of the adopted budget. The CEO is authorized to make appropriation transfers between departments and divisions within the enterprise fund as necessary to adequately reflect the expenditure needs of the agency.

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22 Subheader 5.6 RESPONSIBILITY FOR BUDGET MANAGEMENT AND BUDGETARY CONTROL 3CE shall maintain a budgetary control system to help it adhere to the adopted budget. The CEO has budgetary control and authority over appropriations. The CFO shall administer and maintain the system utilized for budgetary control. As the administrator of the budgetary control system, the CFO shall notify the CEO when a department is reaching the departmental appropriation limit. The CFO shall seek guidance from the CEO on all issues relating to appropriations and controls. 3CE Officers in coordination with the CFO have primary responsibility for managing departmental budgets by:
• Providing accurate and timely budget estimates;
• Monitoring revenues to ensure timely receipt in the amounts anticipated; • Ensuring that expenditures comply with the law, adopted resolutions, policies, and align appropriations relative to revenues;
• Providing prompt notification to the CEO when either revenues or expenditures are not as anticipated; and
• Preparing and justifying budget revisions when necessary.

5.7 PREPARATION OF FINANCIAL REPORTS
The CEO annually prepares or causes to be prepared:
• An Annual Comprehensive Financial Report (ACFR) that reports on 3CE’s financial position and activities adhering to Generally Accepted Accounting Principles (GAAP) or state law requirements, to provide readers with a broader understanding of the agency’s financial operations; • A mid-year estimate to provide current-year performance and forward-looking perspective to advise the Policy Board on future challenges and provide a base for building the following year’s Recommended Budget; and
• Additional reports, as appropriate, to keep the Policy Board informed on current financial performance and developments.

The CEO has oversight and contract management over the external auditors reviewing the ACFR.

External auditors shall report to the CEO or designated officer on audit findings. The CEO will take the audit findings thereafter to the Policy Board.

5.8 PUBLICATION OF BUDGET
The CEO shall publish annually a Recommended Budget document that satisfies nationally recognized standards for effective budget presentation. The Recommended Budget will be provided to the Policy Board a minimum of two weeks in advance of the annual budget hearings.

5.9 BUDGET DEVELOPMENT
Budget development is an annual process incorporating the Policy Board’s priorities and weighing competing requests for 3CE resources within expected fiscal constraints. The process begins with departments preparing “baseline” budgets proposing levels of service and staffing that can be carried

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23 Subheader out within expected resources (e.g., revenues). Departments may submit “augmentation requests” for additional resources to mitigate potential impacts, increase staffing/services, or invest in infrastructure.

The CEO evaluates baseline budgets and augmentation requests within the constraints of a balanced budget and builds the annual Recommended Budget. Staff considers the following criteria in formulating recommendations for the annual budget and subsequent mid-year budget modifications:
• Mandated by current law, regulation, or Policy Board policy; • Alignment with 3CE’s strategic initiatives and priorities; • Necessary to maintain the current level of mission-critical services/operations; • Substantiation of compelling public need (e.g., health, safety, economic vitality, quality of life) that cannot be met within existing resources;
• Likelihood of success based on prior performance, degree of planning/specificity, requested resources, and assumed timeline;
• Leverages sustainable financial support from non-3CE sources; • Appropriate placement of responsibility (federal, state, or local); • Degree of urgency; and
• Critical infrastructure investment to ensure productivity and continuity of operations.

Criteria in the listing are not exhaustive or in any particular order, nor are they mutually exclusive; funding recommendations may align with more than one criterion.

5.10 ESTABLISH 3CE PRIORITIES
The Policy Board has a continuous process of establishing 3CE priorities for ensuing years. The Policy Board implements these priorities in the Recommended Budget. Understanding that elected officials, appointed officials, and agency officers are charged with the actual provision of services to the community, the Policy Board shall set broad priorities to ensure flexibility for the agency to concentrate on these priorities.

5.11 AMENDMENTS TO THE ADOPTED BUDGET
Modifications to the Adopted Budget require the approval of a majority of Policy Board members.

Amendments to the Adopted Budget will be made in compliance with Policy Board policies. As an enterprise fund, the relationship between financing uses and financing sources is the overriding principle; thus, appropriation controls are not required.

5.12 BUDGETARY BASIS
3CE uses the full accrual basis of accounting following GAAP. The budgetary basis is appropriation-based, beginning October 1 and ending the last day of September of each year. 3CE is an enterprise fund that is appropriation-based budgeted; however, accounting is on a full accrual basis.

5.13 CAPITAL ASSET DEFINITION
3CE defines capital assets as assets with initial, individual costs of $5,000 or more and an estimated useful life greater than one year, except infrastructure, for which the threshold is set at $100,000. Capital assets include both tangible and intangible assets categorized by asset type for reporting purposes.

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24 Subheader 5.14 APPROPRIATIONS FOR CONTINGENCIES
3CE annually adopts an appropriation for contingencies to provide sufficient working capital and a margin of safety for unplanned operational needs. The contingency appropriation is utilized only after all other budget resources have been examined. The appropriation for operational contingencies shall be equal to five percent (5%) of recommended appropriations, excluding cost of energy (COE), unless expressly modified by the Policy Board as part of the annual budget adoption.

6.0 Net Position and Reserve Policies

6.1 NET POSITION
Net position is a measurement of available financial resources. It is the difference between total assets and total liabilities. The Policy Board recognizes that maintaining a positive net position is essential to preserving 3CE’s financial integrity. Sufficient net position and reserve levels are a critical component of 3CE’s overall financial management strategy. They are key factors in the ability to sustain service delivery and obtain external financing. Rating agencies analyze net position when considering 3CE’s overall financial strength and creditworthiness. Adequate reserves enable flexible financial planning in developing rate structures, future capital projects, dealing with unforeseen emergencies, and changes in general economic conditions.

6.2 USE OF UNRESERVED NET POSITION
3CE’s goal is to only use unreserved net position as a source to finance one-time investments, reserves, and/or commitments. As a one-time financing source, any end-of-year positive net position will be used for non-recurring expenditures and only after confirmation of the yearly audit.

6.3 STRATEGIC RESERVE
A strategic reserve is essential to provide an adequate financial backstop throughout the year. 3CE shall adopt a strategic reserve equal to twenty-five percent (25%) of budgeted appropriations. The strategic reserve will provide sufficient working capital (cash flow), fund settlements of legal judgments against 3CE in excess of reserves specifically designated for litigation, for natural disasters as determined by the CEO or Policy Board, and for one-time-only budget overruns that could not be addressed through the annual appropriations for contingencies.

If the strategic reserve is utilized to provide temporary funding for unforeseen needs, 3CE shall take the measures necessary to prevent its use in the following fiscal year by increasing revenues and/or decreasing expenditures to regain balance. 3CE shall also restore the strategic reserve to the minimum level of twenty-five percent (25%) of budgeted appropriations within five fiscal years following the fiscal year in which the event occurred. The plan to restore the strategic reserve shall be included and highlighted in the Recommended Budget.

6.4 ENERGY RATE STABILIZATION RESERVE
The agency shall maintain an energy rate stabilization reserve equal to twenty percent (20%) of the budgeted COE. This reserve serves as a financial buffer to absorb fluctuations in energy costs and respond to unforeseen changes in market conditions or regulatory requirements that may increase power procurement expenses that cannot be absorbed by changes to cover recovery efforts, such as electric generation rate adjustments.

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25 Subheader A central purpose of this reserve is to support rate smoothing and long-term rate stability. By strategically using this reserve, 3CE may maintain consistent, competitive customer rates even during periods of cost volatility, strengthening its position as a load-serving entity and sustaining customer trust.

Any material or sustained use of the reserve shall be reflected in the Recommended Budget, including a long-term plan to replenish the reserve. This reserve may be utilized throughout the fiscal year at the direction of the CEO with subsequent reporting to the Energy Risk Management Committee and the Boards.

6.5 RENEWABLE ENERGY INNOVATION AND INITIATIVES RESERVE The agency shall maintain a renewable energy innovation and initiatives reserve equal to five percent (5%) of the budgeted COE. This reserve shall be utilized for investments in furtherance of the Boards’ goals to accelerate the utilization of 100% clean and renewable energy through the commitment to new or emerging, but scalable, technologies that can address the challenges of an intermittent renewable grid and reduce dependency on fossil fuels for electricity generation.

6.6 CAPITAL INFRASTRUCTURE RESERVE
The agency shall establish a capital infrastructure reserve sufficient to provide for the operation, routine scheduled maintenance, reasonably anticipated unplanned repair, and ultimate replacement costs of 3CE’s capital infrastructure, including enterprise software, real estate, and electric generation and storage facilities.

6.7 MEASUREMENT OF RESERVE TARGETS
Due to the nature of the agency’s business, the mechanism to fund the four reserves shall be the use of cash, cash equivalents, and short-term investments. The reserves must be liquid and available to ensure the ability to use the reserves for their intended purpose. Market fluctuations, operational continuity, competitive advantage, and regulatory compliance are risks that are mitigated with robust reserves as the agency transitions to a clean and renewable electric grid.

7.0 Capital Facilities and Improvement Policies

7.1 CAPITAL INVESTMENTS
3CE is responsible for investing in the preservation, maintenance, and improvement of owned assets, including buildings, equipment, and other capital infrastructure.

Projects in excess of $100,000 that have an estimated useful life of at least five years and are non-recurring are considered capital projects and should be evaluated against other uses and priorities.

All capital expenditures should be included in the Adopted Budget or taken to the Policy Board for approval and amendment to the Adopted Budget.

8.0 Debt Management
Due to its length and complexity, the Debt Management Policy is reviewed by the Policy Board separately from these policies.

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3CE Staff Positions Schedule
26 Office/Department Position Title FY
2023-24
FY
2024-25
FY
2025-26
Change from
Prior Year
Office of the
CEO
Chief Executive Officer 1 1 1 0
Board Clerk 1 1 1 0
Principal Management Analyst 0 0 1 1
To Be Determined 6 1 0 (1)
Total Positions 8 3 3 0
Office of the
General Counsel
General Counsel 1 1 1 0
Deputy General Counsel 0 1 1 0
Total Positions 1 2 2 0
Office of the CFO Chief Financial Officer 1 1 1 0
Finance Director of Finance 1 1 1 0
Accountants (P,S) 2 2 2 0
Billing Operations & Rates Analyst (P,S) 1 2 2 0
Subtotal 5 6 6 0
Energy Risk
Management
Director of Energy Risk Management 1 1 1 0
Energy Risk Analyst (P,S) 0 1 2 1
Subtotal 1 2 3 1
Total Positions 6 8 9 1
Office of the
COO
Chief Operating Officer 1 1 1 0
Administrative Specialist (P,S) 1 1 1 0
Power Supply Director of Power Supply Resources 1 1 1 0 Manager of Energy Trading 1 1 1 0
Manager of Energy Contracts & Settlements 0 1 1 0
Power Resources Planner 0 2 2 0
Power Resources & Markets Manager 1 1 1 0
Energy Contracts & Compliance Manager 1 1 1 0
Power Supply Analyst (P,S) 1 1 1 0
Settlements Analyst (P,S) 0 2 2 0
Subtotal 7 12 12 0

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27 Office/Department Position Title FY
2023-24
FY
2024-25
FY
2025-26
Change from
Prior Year
Regulatory &
Compliance
Director of Regulatory Affairs &
Compliance 1 1 1 0
Policy Advisor (P,S) 2 2 2 0
Subtotal 3 3 3 0
Data & IT Director of Data & Analytics 1 1 1 0
Data Analyst (P,S) 1 1 1 0
Data Engineer (P,S) 1 1 1 0
Business Applications Developer 0 0 1 1
Manager of Information Technology 1 1 1 0
Information Technology Specialist (P,S) 1 1 1 0
Subtotal 5 5 6 1
HR & Admin Director of Human Resources &
Administrative Services 1 1 1 0
Human Resources Analyst (P,S) 1 1 1 0
Administrative Specialist (P,S) 1 1 1 0
Subtotal 3 3 3 0
Total Positions 18 23 24 1
Office of the CCO Chief Communications Officer 1 1 1 0
Administrative Specialist (P,S) 1 1 1 0
Communications
& Outreach
Director of Communications & Outreach 1 1 1 0
Manager of Communications 1 1 1 0
Communications Specialist (P,S) 2 2 2 0
Manager of Customer Accounts & Services 1 1 1 0
Customer Accounts Manager (P,S) 4 4 4 0
Director of Legislative Affairs 0 0 1 1
Community Relations Manager (P,S) 2 2 2 0
Subtotal 13 13 14 1
Energy Programs Director of Energy Programs 1 1 1 0
Manager of Energy Programs 1 1 1 0
Project Manager 0 1 1 0
Energy Programs Analyst (P,S) 4 4 4 0
Subtotal 6 7 7 0
Total Positions 19 20 21 1
3CE GRAND TOTAL 52 56 59 3
*(P,S) indicates a flexible series including Principal and Senior levels Page 141 of 173 28 Office Summary
Office of the CEO
The Office of the Chief Executive Officer
provides leadership and directs the
implementation of 3CE’s business functions,
programs, and initiatives to ensure alignment
with the Policy Board’s strategic vision and
policies. An integral part of this work involves
communication and collaboration with
customers and stakeholders, the cultivation
of strong relationships with 3CE’s Member
Agencies, and the facilitation of programs
that advance the Board’s goals.

The Chief Executive Officer works to accelerate the adoption of renewable energy resources, overseeing the negotiation of Power Purchase Agreements (PPAs) and ensuring 3CE’s plans align with its mission to provide reliable, clean, affordable electricity and electrification programs to reduce greenhouse gas emissions and strengthen our local economy. At its heart, the focus of the Executive Office is to lead 3CE in a way that serves its customers, empowers its staff, and brings economic and environmental benefits to its communities.

The Recommended Budget for the Office of the CEO totals $1,167,085, with $1,034,085 allocated to salaries and benefits and $133,000 for services and supplies. This reflects a $67,811 decrease from the prior year, primarily due to the development of the Principal Management Analyst position, which was originally budgeted as a To Be Determined role in the current fiscal year. The office has a total of three staff.

FY 2025-26 Budget Summary - Office of the CEO
Prior Year
Actuals
2023-24
Adopted
Budget
2024-25
Mid-Year
Estimate
2024-25
Requested
Total
2025-26
Recommended
Budget
2025-26
Recommended
Change from
Adopted
Salaries and Employee Benefits 808,166 1,105,896 1,007,730 1,034,085 1,034,085 (71,811) Services and Supplies 1,168,907 129,000 111,901 133,000 133,000 4,000 Total Financing Uses 1,977,073 1,234,896 1,119,631 1,167,085 1,167,085 (67,811) Change in Net Position (1,977,073) (1,234,896) (1,119,631) (1,167,085) (1,167,085) 67,811 Principal Management
Analyst
Board Clerk

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29 Office of the CEO: Chief Executive Officer

ACCOMPLISHMENTS
• Led transformational agency growth building to 56
positions including the hiring of a new Director of
Power Supply and Chief Operating Officer. During this
time 3CE achieved a Great Place to Work certification,
solidifying the agency as a best-in-class employer
of choice. Additionally, expanded 3CE’s outreach
footprint and community support through office
openings in Santa Cruz and San Luis Obispo.
• Oversaw significant financial achievements including
retaining our “A” credit rating based on strong liquidity, high customer retention, and robust renewable energy
portfolio. At the same time, led the organization to
pursue innovative PPA hybrid projects that will reduce
emissions while utilizing existing interconnections,
elevated 3CE’s market presence, and successfully
managed energy costs while ensuring regulatory
compliance amid ongoing market shifts.
• Championed the development and implementation
of 3CE’s first Energy Trading and Risk Management
system (ETRM) providing an in-house, customizable
platform that consolidates all energy product
trades, contracts, load forecasts, market prices, and
supporting data. The ETRM serves as a transparent,
single source of information for reporting to users,
management, and the Boards, replacing multiple ad
hoc spreadsheet-based solutions.
• Guided the successful enrollment of the City of
Atascadero and unincorporated San Luis Obispo
County, achieving a 93+% enrollment rate. Further
positively impacted local communities by continued
investments in electrification through 3CE’s rebate
and incentive programs which continue to reduce
emissions.
• Engaged the boards and various committees to
thoughtfully and strategically assess a responsible
energy portfolio structure considering 3CE’s renewable
goals, market impact, utility rate pressures, reliability, and strategic approaches.

FY 2025-26 FOCUS AREAS
• Lead the organization and CCA industry in
navigating ongoing turbulent federal policy
changes, market challenges, and upcoming
regulatory changes, particularly Power
Charge Indifference Adjustment reforms
and implementation of the Reliable Clean
Power Procurement Program.
• Lead 3CE efforts to optimize 3CE’s power
portfolio through Energy Risk Management
and Executive Committee engagement to
review and drive enhancements in power
supply risk management, load forecasting,
and steadfast business-oriented contracting
principles.
• Spearhead initiatives like reorienting 3CE’s
customer support and engagement for
post-enrollment operations, supporting and
stabilizing new revenues through expanded
owned charging assets, and developing a
program portfolio that supports customer
electrification and empowerment.
• Champion the development of
innovative projects like the integration
of local generation resources into 3CE’s
procurement strategy.
• Continue 3CE’s commitment to a dynamic
workplace culture and designation as an
employer of choice to attract and retain the
best talent in the industry.

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30 Office Summary (continued)
Office of the General Counsel
The Office of the General Counsel manages 3CE’s legal affairs, compliance, contract review and negotiation, and dispute resolution. The department also coordinates with outside counsel on specialized legal matters such as PPAs, regulatory proceedings, and litigation.

The Recommended Budget for the General Counsel totals $2,769,108, with $698,108 allocated to salaries and benefits and $2,071,000 to services and supplies. The increase from the current adopted budget of $1,111,604 is primarily due to the expected need for additional specialized external legal services to support complex power supply and regulatory matters. The office is led by the General Counsel and includes a total of two staff.

ACCOMPLISHMENTS
• Advised and assisted in drafting new
contracts, negotiating contract amendments
impacting all offices.
• Advised on real property negotiations and
the purchase of the 3CE office in Santa Cruz
County.
• Advised Energy Programs team on Requests
for Proposals (RFPs), capital-improvement
projects, and electrification projects and
grants.
• Advised the boards on closed-session and
public-agenda agency business.
• Supported the agency’s development and
consideration of policy updates and advised
on advocacy and comments in CPUC
proceedings.
• Managed pending litigation in coordination
with outside counsel.

FY 2025-26 FOCUS AREAS
• Support the agency’s ongoing legal needs,
deliver timely and accurate professional
services, and provide appropriate
recommendations to staff and the Boards.
• Continue to respond to legal requests to
assist staff and the boards in achieving
their goals.
• Manage pending litigation, assist in the
creation and continued update of agency
policies, and advise on contracts and
regulatory developments impacting the
agency.
30 FY 2025-26 Budget Summary - Office of General Counsel Prior Year
Actuals
2023-24
Adopted
Budget
2024-25
Mid-Year
Estimate
2024-25
Requested
Total
2025-26
Recommended
Budget
2025-26
Recommended
Change from
Adopted
Salaries and Benefits - 611,504 469,212 961,020 698,108 86,604 Services and Supplies - 1,046,000 628,196 2,071,000 2,071,000 1,025,000 Total Financing Uses - 1,657,504 1,097,408 3,032,020 2,769,108 1,111,604 Change in Net Position - (1,657,504) (1,097,408) (3,032,020) (2,769,108) (1,111,604)

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3131 Page 145 of 173
32 Office Summary (continued)
Office of the CFO
Director of Finance
FY 2025-26 Budget Summary - Office of the CFO
Prior Year
Actuals
2023-24
Adopted
Budget
2024-25
Mid-Year
Estimate
2024-25
Requested
Total
2025-26
Recommended
Budget
2025-26
Recommended
Change from
Adopted
Interest and Investment Returns 12,703,132 7,000,000 10,255,526 9,100,000 9,100,000 2,100,000 Other Income 54,084 68,400 74,223 74,592 75,000 6,600
Sub-Total Revenues 12,757,216 7,068,400 10,329,749 9,174,592 9,175,000 2,106,600 Capital Infrastructure Reserve - 17,318,000 2,780,254 1,900,000 1,200,000 (16,118,000) Total Financing Sources 12,757,216 24,386,400 13,110,003 11,074,592 10,375,000 (14,011,400) Salaries and Employee Benefits 1,591,921 1,975,955 1,816,324 2,539,079 2,335,880 359,925 Services and Supplies 1,979,772 11,748,923 9,135,322 12,294,333 13,351,333 1,602,410 Capital Assets 585,758 17,318,000 2,780,254 500,000 500,000 (16,818,000) Total Financing Uses 4,157,451 31,042,878 13,731,900 15,333,412 16,187,213 (14,855,665) Change in Net Position 8,599,765 (6,656,478) (621,897) (4,258,820) (5,812,213) 844,265 The Office of the Chief Financial Officer
performs essential financial and energy-risk-management functions. The CFO leads financial planning and budgeting, reporting
and analysis, treasury and revenue
oversight, internal controls, compliance,
and cost management. The office also
provides financial strategy and decision
support to the CEO, staffs the Audit and
Finance Committee, and participates in the
Energy Risk Committee.
32 Director of Energy
Risk Managment
The Recommended Budget for the Office of the Chief Financial Officer totals $16,187,213, with $2,335,880 allocated to salaries and benefits, $13,351,333 to services and supplies. The office has a total of nine staff.

The Recommended Budget for the office is financed by $9,175,000 in estimated revenue from interest income on self-managed investments and rental income from the San Luis Obispo office building and $1,200,000 from the Capital Infrastructure Reserve for agencywide capital projects. Revenue projections are conservative due to expectations that interest rates may decline over the fiscal year.

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The Finance Department oversees financial planning and budgeting, financial reporting and analysis, electric generation rates, billing operations, investment management, internal controls and compliance, and financial strategy. Key duties include developing the annual Recommended Budget, setting annual electric generation rates, producing the mid-year budget forecast, auditing financial statements, and developing and monitoring financial policies. By aligning financial operations with regulatory and market dynamics, the department plays a central role in sustaining 3CE’s operational and programmatic success. 33 ACCOMPLISHMENTS
• Presented the agency’s financial position to S&P
and retained an “A” credit rating based on strong
liquidity, high customer retention, and robust
clean-energy portfolio.
• Implemented rate adjustments as part of the
annual ratemaking process to ensure operational
costs and reserves are covered by revenues.
• Automated the NEM validation and check-request
process to reduce manual validation for solar
customers.
• Successfully implemented a process for collection
on interest of collateral held by counterparties.

FY 2025-26 FOCUS AREAS
• Implement a Collections and Delinquent Accounts Policy for effective management of receivables.
• Create a load-forecast analysis process for ongoing long-term forecasting. • Implement a comprehensive enterprise resource-planning system for budgeting, financials, and payroll.
• Develop a revenue-mapping tool to outline all operational processes that have an impact on revenue to identify
areas for improvement.
• Continue improvement of net metering automation,
validation, and check-request processes.

FY 2025-26 Budget Summary - Finance
Prior Year
Actuals
2023-24
Adopted Budget
2024-25
Mid-Year
Estimate
2024-25
Requested
Total
2025-26
Recommended
Budget
2025-26
Recommended
Change from
Adopted
Interest and Investment Returns 12,703,132 7,000,000 10,255,526 9,100,000 9,100,000 2,100,000 Other Income 54,084 68,400 74,223 74,592 75,000 6,600
Sub-Total Revenues 12,757,216 7,068,400 10,329,749 9,174,592 9,175,000 2,106,600 Capital Infrastructure Reserve - 17,318,000 2,780,254 1,900,000 1,200,000 (16,118,000) Total Financing Sources 12,757,216 24,386,400 13,110,003 11,074,592 10,375,000 (14,011,400) Salaries and Employee Benefits 1,296,974 1,480,146 1,482,123 1,646,043 1,516,863 36,717 Services and Supplies 1,418,069 11,702,283 9,108,106 12,237,333 13,294,333 1,592,050 Capital Assets 585,758 17,318,000 2,780,254 500,000 500,000 (16,818,000) Total Financing Uses 3,300,801 30,500,429 13,370,483 14,383,376 15,311,196 (15,189,233) Change in Net Position 9,456,415 (6,114,029) (260,480) (3,308,784) (4,936,196) 1,177,833 Office of the CFO - Finance
The Recommended Budget for the Finance Department totals $15,311,196, including $1,516,863 in salaries and benefits, $13,294,33 in services and supplies, and $500,000 in capital assets for tenant improvements in existing office buildings. Total financing uses compared to the current year budget of $15,189,233 result from lower planned capital projects offset by an increase in operating costs from growth in the operation contin-gency to account for higher operating costs and higher data manager and IOU service fees.

The Recommended Budget also includes $9,100,000 in interest and investment returns from liquidity, $75,000 in rental income from the San Luis Obispo office building and $1,200,000 from the Capital Infrastructure Reserve for agencywide capital projects including tenant improvements in the second floor of the San Luis Obispo office and the Santa Cruz office buildings plus capital project costs for the Energy Program’s Vehicle Charger Asset Ownership pilot program. The department is led by the Director of Finance and has a total of five staff.

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34 Office of the CFO - Energy Risk Management
The Energy Risk Management Department independently monitors, measures, and reports risk exposures; oversees policy compliance; provides analytics and valuation; and serves as a control and check on procurement activities.

FY 2025-26 Budget Summary - Energy Risk Managemant
Prior Year
Actuals
2023-24
Adopted
Budget
2024-25
Mid-Year
Estimate
2024-25
Requested
Total
2025-26
Recommended
Budget
2025-26
Recommended
Change from
Adopted
Salaries and Employee Benefits 294,947 495,809 334,201 893,036 819,017 323,208 Services and Supplies 561,703 46,640 27,216 57,000 57,000 10,360 Total Financing Uses 856,650 542,449 361,417 950,036 876,017 333,568 Change in Net Position (856,650) (542,449) (361,417) (950,036) (876,017) (333,568) The Recommended Budget for the Energy Risk Management Department totals $876,017, including $819,017 in salaries and benefits and $57,000 in services and supplies. Personnel costs increased by $323,208 due to an additional energy risk analyst position and the reclassification of the department director position.

The services and supplies budget increased by $10,360 to account for additional professional development costs from the new energy risk analyst position. The department is led by the Director of Energy Risk Management and has a total of three staff.

ACCOMPLISHMENTS
• In partnership with Data & Analytics, built 3CE’s
first Energy Trading and Risk Management
(ETRM) system — a fully auditable and backed-up platform that consolidates all energy and related trades, contracts, load forecasts, market
prices, and supporting data. The ETRM serves as
a transparent, single source of information for
reporting to users, management, and the Board,
and has replaced multiple ad hoc, spreadsheet-based solutions. • Built 3CE’s first comprehensive counterparty
credit-management system by developing
processes and coded automation within our
ETRM to monitor, validate, and report collateral
requirements and exposures daily, enabling
efficient, reliable collateral management for the
first time.
• Developed revisions to the Energy Risk
Management Policy to align with current industry
and CCA best practices. This central policy
establishes agency-wide goals, defines group
responsibilities, and sets clear risk tolerances and
limits for wholesale energy and related products.

FY 2025-26 FOCUS AREAS
• Recruit, hire, and train staff —
particularly in quantitative and
qualitative risk analysis — to ensure
the group meets all functional
requirements and service levels.
• Develop and implement additional
policies and procedures to further
strengthen the transaction operational
lifecycle.
• Continue building agency intellectual
capital, with the goal of reducing
reliance on external consultants.

Office Summary (continued)

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35 35 Page 149 of 173
The Office of the Chief Operating Officer
oversees four departments: Power
Supply Resources, Regulatory Affairs
& Compliance, Data & Analytics, and
Human Resources & Administrative
Services. This office is responsible for
securing affordable, clean, and renewable
electricity for 3CE customers; ensuring
agency compliance with industry
regulations; overseeing customer
usage and transaction data, building,
maintaining, and defending 3CE’s IT
infrastructure; and developing, retaining,
and enabling staff. The Chief Operating
Officer also guides efforts to shape
the regulatory landscape and manages
the complex data systems essential to
serving 3CE’s customer base.

Office Summary (continued)
Office of the COO
s
FY 2025-26 Budget Summary - Office of the COO
Prior Year
Actuals
2023-24
Adopted Budget
2024-25
Mid-Year
Estimate
2024-25
Requested
Total
2025-26
Recommended
Budget
2025-26
Recommended
Change from
Adopted
Net Electricity Sales 544,358,419 745,962,355 660,909,347 620,920,150 578,022,716 (167,939,639) Interest and Investment Returns 190,529 - 514,887 - - - Other Income - - 8,108,207 - - -
Total Financing Sources 544,548,948 745,962,355 669,532,441 620,920,150 578,022,716 (167,939,639) Cost of Energy 547,248,240 665,267,116 600,074,023 534,776,255 534,776,256 (130,490,860) Salaries and Employee Benefits 2,805,179 5,251,727 4,487,541 7,468,377 5,907,288 655,561 Services and Supplies 9,265,695 4,709,822 3,853,283 5,656,240 5,556,240 846,418 Total Financing Uses 559,319,114 675,228,665 608,414,847 547,900,872 546,239,784 (128,988,881) Change in Net Position (14,770,166) 70,733,690 61,117,594 73,019,278 31,782,932 (38,950,758) Director of Power
Supply Resources
Director of Regulatory
Affairs & Compliance
Director of Human
Resources & Administration
Director of Data
& Analytics
The Recommended Budget for the Office of the Chief Operating Officer totals $546,239,784, with $534,776,256 in cost of energy, $5,907,288 allocated to salaries and benefits and $5,556,240 to services and supplies.

The Recommended Budget for the office is financed by $578,022,716 in net electricity sales. The office has a total of 24 staff.
36 Page 150 of 173
FY 2025-26 Budget Summary - Regulatory Affairs & Compliance Prior Year Actuals
2023-24
Adopted Budget
2024-25
Mid-Year Estimate
2024-25
Requested
Total
2025-26
Recommended
Budget
2025-26
Recommended
Change from
Adopted
Salaries and Employee Benefits 294,947 588,211 594,361 869,355 634,995 46,784 Services and Supplies 561,703 1,014,105 933,478 1,379,500 1,279,500 265,395 Total Financing Uses 856,650 1,602,316 1,527,839 2,248,855 1,914,495 312,179 Change in Net Position (856,650) (1,602,316) (1,527,839) (2,248,855) (1,914,495) (312,179) The Regulatory Affairs & Compliance Department ensures 3CE meets all regulatory requirements and actively engages with the agencies that oversee energy markets and Community Choice Aggregators. The department supports statewide goals related to reliability, clean energy, and equity through proceedings related to Integrated Resource Planning, Mid-Term Reliability, Resource Adequacy, Renewable Portfolio Standards, and the Power Charge Indifference Adjustment.

Office of the COO - Regulatory Affairs & Compliance
The Recommended Budget for the Regulatory Affairs & Compliance Department totals $1,914,495, with $634,995 allocated for salaries and benefits and $1,279,500 for services and supplies. This budget supports ongoing participation in regulatory proceedings and compliance with state energy mandates. The increase in the budget versus the prior year of $312,179 primarily results from additional staff augmentation costs through participation in CalCCA, the statewide trade association for CCAs, and additional funding for external regulatory expertise. The department is led by the Director of Regulatory Affairs & Compliance and has three staff.

ACCOMPLISHMENTS
• Monitored and participated in more than 30 active
proceedings spanning three regulatory bodies,
including proceedings related to utility ratemaking,
resource adequacy, and greenhouse-gas reduction
planning.
• Led a CCA coalition for improved access to critical
customer and load data.
• Individually submitted three rounds of comments in
support of customer affordability measures.
• Participated in new interconnection reform initiatives. • Facilitated 3CE’s participation in the CPUC’s Bioenergy Market Adjusting Tariff (BioMAT) program.

FY 2025-26 FOCUS AREAS
• Support CalCCA and industry stakeholders to
protect customers from rate shock and unfair cost
shifts caused by regulatory decisions impacting
the Power Charge Indifference Adjustment.
• Complete and submit 3CE’s 2025 Integrated
Resource Plan and narrative.
• Monitor and implement the CPUC’s new Reliable
and Clean Power Procurement Program.
• Continue to engage in regulatory policy
discussions to expedite the integration of new
resources and optimize load-shifting strategies in
alignment with 3CE’s goal of supplying 100% clean
and renewable energy to meet retail sales.
37 Page 151 of 173
Office Summary (continued)
The Power Supply Resources Department secures competitively priced, reliable, clean and renewable electricity for 3CE customers. This is achieved through a mix of short-term and long-term contracts designed to increase cost certainty and ensure compliance with all regulatory procurement requirements. Other departmental functions include power settlement and long-term resource planning, as well as continued participation in joint procurement efforts through California Community Power (CC Power).

Power Supply Resources staff operate within a dynamic and often volatile energy market, where prices can shift unpredictably and significantly. In addition to market variability, evolving regulatory and legislative frameworks may lead to structural changes that impact energy pricing and procurement obligations. To navigate these challenges, 3CE adheres to its Energy Risk Management Policy — helping to mitigate risk, promote rate stability, and support the agency’s commitment to securing clean and renewable energy resources.

The Recommended Budget for the Power Supply Resources Department totals $540,485,673, including $534,776,256 in Cost of Energy (COE), $3,293,777 in salaries and benefits, and $2,415,640 in services and supplies. The budget reflects procurement needs such as Renewable Energy Certificates (RECs), Resource Adequacy (RA), and energy to serve the Central Coast. The cost of energy is estimated to decrease $130.5 million from the current year budget from lower costs for energy attributes, RA and RECs. The $455,656 increase in personnel costs is primarily due to higher salary costs based on competitive market trends and the transfer of an administrative specialist position from the Administrative Services department. Compared to the prior year, the $495,631 increase in services and supplies is from technical consultant costs and further involvement with CC Power, as 3CE works with other CCAs to procure new, cost-effective clean energy and reliability resources.

The Recommended Budget also includes $578,022,716 in estimated revenues from the net sale of energy. The $167.9 million decrease from the current year results due to a lower retail demand forecast and decreasing cost of energy, primarily from lower energy attribute costs. The department is led by the Director of Power Supply Resources and has a total of eleven staff.

FY 2025-26 Budget Summary - Power Supply Resources
Prior Year
Actuals
2023-24
Adopted
Budget
2024-25
Mid-Year
Estimate
2024-25
Requested
Total
2025-26
Recommended
Budget
2025-26
Recommended
Change from
Adopted
Net Electricity Sales 544,358,419 745,962,355 660,909,347 620,920,150 578,022,716 (167,939,639) Interest and Investment Returns 190,529 - 514,887 - - - Other Income - - 8,108,207 - - -
Total Financing Sources 544,548,948 745,962,355 669,532,441 620,920,150 578,022,716 (167,939,639) Cost of Energy 547,248,240 665,267,116 600,074,023 534,776,255 534,776,256 (130,490,860) Salaries and Employee Benefits 1,302,215 2,838,121 2,494,661 4,420,056 3,293,777 455,656 Services and Supplies 1,341,924 1,920,009 1,469,335 2,415,640 2,415,640 495,631 Total Financing Uses 549,892,379 670,025,246 604,038,019 541,611,951 540,485,673 (129,539,573) Change in Net Position (5,343,431) 75,937,109 65,494,422 79,308,199 37,537,043 (38,400,066) Office of the COO - Power Supply Resources
38 Page 152 of 173

ACCOMPLISHMENTS
• Executed renewable Power Purchase Agreements to advance 3CE’s long-term retail demand. Executed two new Hybrid
Energy Storage Agreements to reduce existing emissions
from natural gas combustion generation sites while securing valuable resource adequacy for customers.
• Implemented the pre-pay financing structure, saving customers $32.9 million over the initial seven-year period of the bonds. • Maintained Slice of Day Resource Adequacy compliance
despite ongoing market shifts.
• Seamlessly transitioned scheduling coordination vendors with no issues or interruptions in CAISO bidding.

FY 2025-26 FOCUS AREAS
• Continue 3CE’s goals of advancing 100%
clean and renewable energy in a dynamic and
challenging market environment.
• Implement the Energy Transaction Risk
Management system to ensure efficient and
accurate reporting.
• Update procurement and portfolio-management strategies to facilitate transactions in alignment with Board goals.

The Data & Analytics Department oversees 3CE’s extensive customer usage and transaction data for 515,000 accounts, providing strategic analysis to inform business decisions. The department’s primary objective is to empower the organization with information and insights derived from a consolidated data environment that increases visibility into agency operations. The department also includes 3CE’s IT team, which builds and maintains the agency’s information-technology infrastructure and ensures data security The Recommended Budget for the Data & Analytics Department totals $2,393,239, with $1,318,739 in salaries and benefits and $1,074,500 in services and supplies. Personnel costs increased $328,413 from the prior year, mostly due to higher benefit and salary expenses based on competitive market trends and the addition of a business applications developer position that will assist with designing and building customer software solutions. Services and supplies increased by $85,392 from additional agencywide software and equipment needs. The department is led by the Director of Data & Analytics and has a total of six staff.

ACCOMPLISHMENTS
• Led the development of 3CE’s centralized Data Analytics Hub as a single source of data across departments.
• Designed, developed, and maintained more than 15 cross-departmental, interactive dashboards that provide insights into data such as individual customer attributes, agency-wide usage trends, and key performance indicators for specific Energy Programs.
• In partnership with Energy Risk Management, built and implemented a custom Energy Trading & Risk Management
(ETRM) system and portal to manage power purchase
agreements, energy hedges, Resource Adequacy, and
renewable attributes, while providing a platform for risk analytics and reporting.
• Led the integration of an advanced customer relationship management (CRM) system with 3CE’s data warehouse,
empowering customer accounts and energy programs
staff to efficiently track customer interactions and insights, FY 2025-26 FOCUS AREAS
• Expand the ETRM system to incorporate
settlement data and financial functions for end-to-end deal coverage. • Strengthen data governance and compliance,
including continued Covered Information and
AMI audit readiness.
• Foster cross-CCA data collaboration and
advance predictive analytics for energy-risk and
load-forecast tracking.

FY 2025-26 Budget Summary - Data & Analytics
Prior Year
Actuals
2023-24
Adopted
Budget
2024-25
Mid-Year
Estimate
2024-25
Requested
Total
2025-26
Recommended
Budget
2025-26
Recommended
Change from
Adopted
Salaries and Employee Benefits 768,111 990,326 973,700 1,318,739 1,318,739 328,413 Services and Supplies 7,099,919 989,108 716,780 1,074,500 1,074,500 85,392 Total Financing Uses 7,868,030 1,979,434 1,690,480 2,393,239 2,393,239 413,805 Change in Net Position (7,868,030) (1,979,434) (1,690,480) (2,393,239) (2,393,239) (413,805) Office of the COO - Data & Analytics
manage program applications and approvals, and
deliver enhanced reporting metrics.
• Conducted extensive customer-privacy audit to
ensure regulatory compliance.
• Collaborated across CCAs and departments on
data and ETRM best practices.

Page 153 of 173 ends

Central Coast Community Energy (3CE) Policy BoardSeptember 18, 2025

Central Coast Community Energy (3CE) Policy Board
September 18, 2025