Central Coast Community Energy (3CE) Policy Board
December 10, 2025

Policy Board of Directors
December 10, 2025
1:30 P.M.

Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940

REMOTE LOCATION VIA TELECONFERENCE
Any interested parties or community members may attend, and participate in, the meeting at the following addresses where Board members may also join the meeting from:

County of Santa Cruz
701 Ocean Street,
Fifth Floor Redwood Room
Santa Cruz, CA 95060
City of Watsonville
City Hall
275 Main Street
Watsonville, CA 95076
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,
BOS Conference Room, Fourth Floor
Santa Barbara, CA 93101
City of Santa Maria
City Hall
110 East Cook Street, Council Chambers
Santa Maria, CA 93454
Truckee
10869 Passage Place
Truckee, CA 96161
Public may participate through ZOOM. For ZOOM participation please join by computer audio at:
https://us02web.zoom.us/j/83507087702
Or join by phone:
+1 669 900 6833 or +1 669 219 2599
Enter this Webinar ID Number: 835 0708 7702 when prompted. Please note there is no Participant Code, you will press # again after the recording prompts you.

You will be placed in the meeting as an attendee. To make a public comment:
 If joined by computer, please press the button to raise your hand  If joined by phone, please push *9 on your keypad
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.

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://pub-3ce.escribemeetings.com/ REASONABLE ACCOMMODATIONS: In compliance with the Americans with Disabilities Act, any individuals who desire to request a reasonable accommodation or modification to observe or participate in the meeting may make such a request by sending an email to: [email protected] Copies of documents may be made in alternative formats, upon request. Requests for accommodations should be made no later than two (2) business days prior to the meeting to allow time for 3CE to address the request.

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 September 18, 2025, meeting of the Policy Board of Directors

2. FY 2024-25 Energy Programs Update

3. Quarterly Regulatory and Legislative Update

4. Financial Report for the period of October 1, 2024, through August 31, 2025

5. Investment Performance Report for the period of October 1, 2024, through September 30, 2025

REGULAR AGENDA

6. CEO Report
a. Community Advisory Council Report
b. Distributed Energy Resources Management System (DERMS) / Virtual Power Plant (VPP) c. Extension of 3CE MTR Procurement Order Obligation Granted d. Integrated Resource Planning Ruling Sets Timeline for Statewide Procurement Planning e. Operations Board Facilitates Development of Compressed Air Energy Storage System f. Santa Barbara Office Space

7. Receive an update on the investor-owned utilities’ Energy Resource Recovery Account proceedings and customer impacts of CPUC’s Power Charge Indifference Adjustment reformulation

CLOSED SESSION

8. Government Code Section 54956.8: Conference with Real Property Negotiators Property: Approximately 4 Acres located north of the Veteran’s Administration Hospital and south of Best Buy in The Dunes on Monterey Bay Development
3CE Negotiators: Robert M. Shaw, Dewayne Woods
Negotiating Parties: Marina Community Partners, LLC
Board member comments and reports
Adjournment

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

MINUTES
The meeting was called to order at 9:07AM with 19 members attending from 10 noticed locations and a quorum established.

Director’s Present: Barajas, Bourbeau, Curro, Daniels, Delgado, Dutra, Guthrie, Hartmann, Martinez, Morales, Patino, Reyes-Martin, Silva, Timm, White, Williamson, Wixom, Vice Chair Ortiz-Legg, Chair Keeley Directors Absent: None
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.

There were no public comments.

The Chair closed the public comment period.

MOTION: Moved by Director Timm, seconded by Director Hartmann to approve the consent calendar as submitted.

ACTION: Motion carried with a voice vote: 19/0/0
AYES: Barajas, Bourbeau, Curro, Daniels, Delgado, Dutra, Guthrie, Hartmann, Martinez, Morales, Patino, Reyes-Martin, Silva, Timm, White, Williamson, Wixom, Vice Chair Ortiz-Legg, Chair Keeley NOES: None
ABSENT: None.

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

2. Accepted 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. Approved 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 Chair called for public comment period on items not listed on the agenda There were no public comments.

The Chair closed the public comment period.

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
Chair called for public comment period on items not listed on the agenda The following individual(s) addressed the Board:
 Scott Murtishaw
The Chair closed the public comment period.

ACTION: Discussion item; no action required.

10. Adopted Resolution No. PB-2025-06 approving the Fiscal Year 2025-26 Recommended Budget Chair called for public comment period on items not listed on the agenda There were no public comments.

The Chair closed the public comment period.

MOTION: Moved by Director Williamson, seconded by Director Danielsto approve ACTION: Motion carried with a voice vote: 19/0/0
AYES: Barajas, Bourbeau, Curro, Daniels, Delgado, Dutra, Guthrie, Hartmann, Martinez, Morales, Patino, Reyes-Martin, Silva, Timm, White, Williamson, Wixom, Vice Chair Ortiz-Legg, Chair Keeley NOES: None
ABSENT: None
Adjourned at 11:00AM

Staff Report Item 2
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Inaara Muhammad, Manager of Energy Programs SUBJECT: FY 2024-25 Energy Programs Update
DATE: December 10, 2025
RECOMMENDATION:

Receive an update on Central Coast Community Energy’s FY 2024-2025 Energy Programs.

BACKGROUND:
3CE’s Energy Programs have been administered since 2019 to support the agency’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 10 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 fourth quarter of FY 2024-25 showed increased participation in 3CE's Energy Programs, due to growing interest in building electrification opportunities among underserved communities, the expiration of federal incentives for residential electrification, and member agencies’ electrification planning.

The table below highlights the 3CE’s impact through the start of Q4 2025, as compared to the prior fiscal year.

FY 2023-24 FY 2024-25
GHG reductions Over 3,700 MT CO2e Over 5,300 MT CO2e
Load shifted 0 kWh Over 2.3 MWh daily
Table 1: Energy Programs impact in FY 2023-24 and 2024-25 3CE’s Energy Programs Portfolio Analysis Update (Attachment 1) provides a detailed look at individual Energy Programs in FY 2024-25. The update shares a variety of program performance metrics, including customer participation, all-electric purchases and installations, reduced greenhouse gas emissions, 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 3CE’s Energy Programs’ focus areas. Complete data for FY 2024-25 will be finalized in Q1 of FY 2025-26 and presented in 3CE’s Annual Energy Programs portfolio evaluation. Data for FY 2025-26 will be included in the next staff report.

Transportation Electrification
EV Charger Asset Pilot: Workplace charging pilot projects at 3CE’s San Luis Obispo and Soquel office are constructed, and chargers are active. The Site Lease License Agreement for 3CE’s public charging pilot received approval from the City Council. With this approval in place, the project, which includes Level 2 and DCFC EV charging stations near the Santa Maria Public Library, is now moving into the construction phase.

Building Electrification
Electrify Your Home: On October 1st, 3CE relaunched its Electrify Your Home program which supports residential customers transitioning to all-electric heat pump technology for space and water heating. 3CE staff, in collaboration with the Community Advisory Council, developed several enhancements to the program including expanded contractor eligibility, newly eligible appliances, and a more customer-friendly application process. Moreover, bringing program administration in-house will leverage 3CE staff’s expertise to improve the customer experience and streamline program operations.

Agricultural Electrification
Ag Electrification Program: On October 1st, 3CE’s Community Advisory Council received a presentation on electrification challenges and opportunities in the agricultural sector. Staff are actively collecting feedback from agricultural stakeholders across 3CE’s service area on potential

program enhancements to support electrification. Presentations and focus group meetings are being held in all five counties served by 3CE during the months of November and December 2025.

Energy Optimization
Distributed Energy Resources Management System (DERMS) / Virtual Power Plant (VPP): On October 24th, 3CE published a Request for Proposals seeking a vendor to provide a DERMS platform and related implementation services. The DERMS will be a critical component of 3CE’s VPP and Distributed Energy Resources (DER) pilot programs. 3CE’s customer relationship management system, which was implemented last fiscal year, has enabled energy programs to remain open as 3CE transitions into FY 2025-26. 3CE’s website has been updated to reflect improvements to programs effective 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 customers and local economies.

ATTACHMENT(S):

1. 3CE Energy Programs Analysis Update

3CE’s Energy Programs Update
This report provides updates on Central Coast Community Energy’s (3CE) Energy Programs and Pilots. 3CE continually tracks energy programs’ growing participation and impact in reducing greenhouse gas emissions and supporting the local economies in which 3CE customers live and work. Complete data for FY 2024-25 will be finalized in Q1 of FY 2025-26 and presented in 3CE’s Annual Energy Programs portfolio evaluation.

The table below highlights the agency’s programs’ impact through the start of Q4 2025, as compared to the prior fiscal year.

IMPACT FY 2023-24 FY 2024-25
GHG reductions Over 3,700 MT CO2e Over 5,300 MT CO2e
Load Shifted 0kWh Over 2.3 MWh daily
Heat Pump Water Heater & HVAC
Units
396 units 1,104 units
All-Electric New Construction 460 units 302
E-Buses 18 E-buses 17 E-buses
Electric Vehicles 1,108 EVs 1,008 EVs
EV Chargers 819 EV Chargers 1,063 EV Chargers
Ag Equipment 18 rebates 22 rebates
Total Incentives Distributed $11 million $15 million
3CE’s energy programs’ impact continues to increase, serving 3CE’s mission to support all customers in their transition to renewable resources, to drive GHG emissions reductions, and to promote local economic growth across the Central Coast.

Transportation Electrification

1.Electrify Your Ride
Over 4,200 MTCO2e avoided
Equal to 980 gas cars off the road for one year
Program Purpose & Overview
Electrify Your Ride (EYR) is 3CE’s flagship transportation program, intended to reduce GHG emissions and increase EV adoption by providing residential and commercial customers with rebates for EV purchases and EV charger installations. Program funds are available first come, first served. Enhanced incentives are available for CARE/FERA customers, or income-qualified participants. Technical assistance is available for multifamily and commercial customers planning EV charging projects.

Over $47M in all-electric purchases
supported
Over 1,800 applications approved across
all 5 counties
Figure 1.1: % of applications across counties
Over 32% rebates to income-qualified customers
Figure 1.2: Incentive distribution to income-qualified
customers
2,811 EV, EV Charger, and Electrical
Upgrades supported this fiscal year
Figure 1.3: Rebates approved by incentive type
Over 26 commercial and multi-family
customers receiving technical assistance

Transportation Electrification

2.Electric Bus (E-bus) Program
Over 410 tCO2e avoided, equal to 17 Type A buses
off the road for one year
Program Purpose & Overview
3CE’s Electric Bus program enables public sector electrification by incentivizing all-electric buses throughout the 3CE service area. The program reduces GHG emissions and harmful pollutants from public transportation serving students, farmworkers, and community members. Program funds are available first come, first served, and can be assigned to a manufacturer. All funded E-buses must be domiciled and charged at 3CE-enrolled sites.
2 transit agencies & 6 school districts
supported across all five counties
Figure 2.2: % rebates distributed across counties
17 all electric buses supported
24% of buses to a Title 1 school or
disadvantaged community (DAC)
Figure 2.1: % buses for DAC/Title 1 School
$14.3M in all-electric
purchases enabled through
3CE’s E-Bus program
Figure 2.3: Rebates approved by e-bus type

Transportation Electrification

3.Plan, Charge, and Electrify Your Fleet
12 Member Agencies committed to zero-emission fleet planning and implementation
Program Purpose & Overview
3CE’s Fleet Electrification programs reduce GHG emissions from medium and heavy-duty fleets by providing Member Agencies with incentives and technical assistance for zero-emission fleet planning and implementation at 3CE-enrolled sites. Program funds are available first come, first served.

Incentive Offerings:
- PLAN: Plan Your Fleet (PYF) provides no-cost technical assistance including fleet replacement planning, project design and engineering, EV charging recommendations, and funding plans.
- CHARGE: Charge Your Fleet (CYF) provides rebates for Level 2 EV Chargers and Level 3 DC Fast Chargers purchase and installation.
- ELECTRIFY: Electrify Your Fleet (EYF) provides rebates for electric vehicle purchase or lease, covering light, medium, and heavy-duty vehicles, plus electric motorcycles.

Program Design Updates
Oct. 1st, 2025: To streamline access and expand funding opportunities, 3CE has combined fiscal-year rebate caps for the Electrify Your Fleet and Charge Your Fleet programs. Member Agencies are eligible for up to $300,000 in total funding for the purchase or installation of electric vehicles, EV supply equipment, and associated infrastructure.

Cities and Counties engaged in zero-emission fleet
planning and implementation include…
4 cities and
counties
Developing Fleet
Replacement
Plans
7 cities and
counties
Developing charging
infrastructure plans
and/or site designs
Over 900kW in EV charging capacity
installed this fiscal year
Over $2.4 million in all-electric purchases and
installations supported
Figure 3.1: rebates distributed by incentive type

Transportation Electrification

4.EV Charger Asset Pilot
Nine Level 2 and two DC Fast Chargers planned across three pilot sites Program Purpose & Overview
3CE’s EV Charger Asset Pilot addresses the need for additional Electric Vehicle Supply Equipment (EVSE) and infrastructure across the 3CE service area through the deployment of a phased EV Charger asset ownership program. The pilot examines charger asset ownership as a potential step in advancing equitable transportation electrification solutions across 3CE’s service area. The pilot encompasses Level 2 and Level 3 DC Fast Charger design, construction, and operation across three categories: community resilience hubs, corridor charging, and EVSE at Member Agency sites.

Board Decisions
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.

June 18, 2025: The Policy Board approved an EV charger project at 3CE’s Santa Cruz office located at 2601 Porter Street in Soquel as an additional workplace charging pilot site.

October 15, 2025: The Executive Committee approved a publicly accessible EV charging project at 421 South McClelland Street in Santa Maria.

Pilot Updates
Workplace Charging at 3CE’s San Luis Obispo Office: EV Charger installation and activation is complete for three Level 2 chargers, which offer a total of five charging ports. Employee access to charging began in September 2025. Since the Board’s initial approval in December 2024, EV ownership among San Luis Obispo office employees has increased by 50%, reinforcing the value of accessible workplace charging.

Workplace Charging at 3CE’s Soquel Office: EV Charger installation and activation is complete for installation of three, Level 2 charging stations serving five parking spaces. Employee access to charging began on November 1st.

Public Charging in Santa Maria: On October 21, the City of Santa Maria City Council approved the Site Lease License Agreement for 3CE’s Public EV Charger Asset Pilot. With this approval in place, the project, which includes Level 2 and DCFC EV charging stations located near the Santa Maria public library, is now moving into the construction phase, with completion anticipated by Q3 of FY 2025-26.

Future Pilot Sites: 3CE staff are exploring additional pilot locations for EV charging in consideration of designing and implementing an EV Charging Master Plan. Additional sites will further inform 3CE’s examination of agency-managed infrastructure to expand access to EV charging throughout the Central Coast.

Building Electrification

5.Electrify Your Home Program
Over 971 MT CO2e avoided, equal to over
130 homes’ energy use for one year
Program Purpose & Overview
3CE's Electrify Your Home Program (EYH) promotes residential building decarbonization by replacing fossil-fuel powered water heating and space heating equipment with high-efficiency electric and heat pump appliances for single family and multifamily properties. Contractors complete the application process and pass the full value of the rebate to the customer. Program funds are available first come, first served.

Board Decisions
April 9th, 2025: The Operations Board authorized the sixth amendment 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 $735k. The amendment enabled program stability and budgetary flexibility through the end of the fiscal year.

Program Design Updates
July 3rd, 2025: The EYH program was paused to new applications due to unusually high participation rates which exceeded available funding. EYH will relaunch on October 1st and include expanded eligibility guidelines to retroactively rebate customers who purchased appliances during the pause period. 3CE is incorporating recommendations from the agency’s Community Advisory Council (CAC) to expand Electrify Your Home offerings in FY 2025-26.

July 7th, 2025: 3CE published a request for proposals seeking a program facilitator for its Virtual Home Assessment pilot, which will launch in Spring 2026.

Figure 5.2: Income-qualified participants by county
60% of rebates distributed to income-qualified customers 1,390 rebates in fiscal year 2024-25
Figure 5.1: Rebates approved by incentive type
EYH supported over 45 unique, local installers across five counties to complete over $12.1 million in all-electric and heat pump installations

Building Electrification

6.New Construction Electrification Program
302 new, all-electric housing units built across 3CE’s service area Program Purpose & Overview
3CE’s New Construction Electrification Program (NCEP) reduces GHG emissions by incentivizing the development of all-electric housing in 3CE’s service area. NCEP provides housing developers incentives to build all-electric housing projects including water heating, space heating, and cooking appliances. Enhanced incentives are available for affordable housing projects and single-family disaster rebuilds. Program funds are available first come, first served.

Figure 6.1: all-electric housing units incentivized by county 44 applications across four counties for the construction of… NCEP supported over 16 local
contractors to build all-electric
housing across 3CE’s service area
All-electric
Accessory Dwelling
Units
All-electric
Disaster Rebuilds
All-electric Market
Rate Housing Units
All-electric
Affordable Housing
Units
2 5 34 261
183 59
55 5
Santa Cruz County
Monterey County
San Luis Obispo County
Santa Barbara County

Building Electrification

7.Reach Codes Program
Codes adopted by 3CE’s cities & counties are
anticipated to impact 310 permits per year
Program Purpose & Overview
3CE’s Reach Code program reduces GHG emissions from the built environment by providing technical assistance to 3CE Member Agency jurisdictions to adopt and codify “Reach Codes” that promote building electrification and EV infrastructure. Technical assistance includes customized code language development, staff presentations, board advocacy, and code enforcement tool creation.

Implemented reach codes update local building codes and ordinances for new residential and commercial construction, and major remodel projects, and align with the 2022 California statewide building code update.

Board Decisions
April 9th, 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.

Program Design Updates
3CE is closely monitoring impacts from recent legislative decisions and exploring available support opportunities.

CODE TYPE & IMPACT
Single Family Existing Buildings- Flexpath:

Flexible menu of energy efficiency, electrification, and electric readiness measures for major renovations
Single Family Existing Buildings- Air
Conditioning to Heat Pump: Property owners
follow energy efficiency measures or install heat
pump technology at time of replacement
Electric Vehicle Infrastructure: Increases EV
charging spaces for new developments and remodel
projects beyond CAL Green code requirements
0 1
2 City of San
Luis
Obispo
City of
Santa Cruz
City of
Goleta
# of Codes
5 Reach Codes adopted or
codified across 3 cities
Figure 7.2: Types of Reach Codes pursued
Figure 7.1: # of codes by city

Agricultural Electrification

8.Agricultural (Ag) Electrification Program
182.5 tCO2 avoided, equal to 12 tractors off the fields for one year Program Purpose & Overview
3CE’s Agricultural (Ag) Electrification program avoids GHG emissions associated with fossil fuel-powered agricultural equipment by incentivizing the purchase of all-electric equipment alternatives. The program provides rebates to 3CE customers in and/or supporting the agricultural industry for all-electric equipment purchases to support business operations. Enhanced incentives are available for small businesses and businesses that experienced loss/damage of equipment due to declared natural disasters. Customers are eligible for up to two rebates per fiscal year, and program funds are available first-come, first-served.
20 customers supported across all five
counties
Figure 8.1: % participation by county
90% of rebates to small businesses
Figure 8.2: % rebates to small businesses by county
3CE incentives leveraged for over $1.66 million in all-electric purchases including… 3CE incentives leveraged for over $1.66 million in all-electric purchases including…

Energy Optimization
13% 1%
54%
18%
14% Monterey County
San Benito County
San Luis Obispo County
Santa Barbara County
Santa Cruz County
2300
0 500
1000
1500
2000
2500
kWh of load shifted daily
(4-9 PM)
Month

9.Residential Battery Rebate Program
Over 3.6 MWh of battery capacity installed this
fiscal year across 3CE service area
Program Purpose & Overview
3CE’s Residential Battery Rebate Program achieves load shifting during peak hours through rebates for the purchase and installation of residential, behind-the-meter battery systems. The program helps solar and non-solar customers manage energy consumption, respond to price signals, and reduce demand during net peak hours. Program funds are available first-come, first-served.

Customers enrolled in NEM 2.0 who elect to transition to NBT early, CARE/FERA-enrolled customers, and customers designated as medical baseline are eligible for enhanced incentives.

Batteries must be programmed to discharge 50% of capacity daily between 4 p.m. and 9 p.m.

Program Design Updates
February 2025: Staff introduced a new scheduling assistance service to help customers meet the program’s discharge requirements. Staff are conducting direct outreach to rebate applicants to facilitate their enrollment.

Over 2.3 MWh load shifted daily during peak hours
Figure 9.1: daily load shift during peak hours
238 applications across all five counties
Figure 9.2: % participation by county
Over 14% of applications from CARE/FERA
or Medical Baseline enrolled customers
193 customers using scheduling
assistance
Over 52 local
contractors actively
installing battery systems
for 3CE customers

Energy Optimization

10. Hourly Flex Pricing Pilot 1 & 2
Over 17,000 MWh annual load enrolled
Program Purpose & Overview
3CE’s Hourly Flex Pricing (HFP) Pilot offers customer savings and operational benefits to agricultural, residential, and commercial 3CE customers through real-time, dynamic price signals.

In partnership with PG&E, both Pilot 1 (agricultural) and Pilot 2 (commercial and residential) offer a variety of Automation Service Providers (ASPs) to help enrolled customers optimize load in response to hourly price signals. Expanded Pilot 1, implemented in partnership with Polaris Energy Services, also includes system reliability benefits for agricultural customers through incentivized equipment automation. HFP Pilots 1 and 2 are currently in their first year of implementation. 73% of annual load enrolled from
commercial meters
Figure 10.1: load enrolled by customer type
70 meters across all three customer
classes
Figure 10.2: pilot participation by customer type

Staff Report Item 3
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Jerri Strickland, Director of Regulatory Affairs & Compliance Das Williams, Director of Legislative Affairs
SUBJECT: Quarterly Regulatory and Legislative Update
DATE: December 10, 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

Quarterly Regulatory & Legislative
Policy Board Update
December 10, 2025

Table of Contents
Contents
REGULATORY UPDATE......................................................................................................................................................... 3 Resource Adequacy (RA)................................................................................................................................................. 3 Demand Response (DR)................................................................................................................................................... 3 Bioenergy Market Adjustment Tariff (BioMAT).................................................................................................... 4 New Power Charge Indifference Adjustment (PCIA) Rulemaking................................................................. 5 Integrated Resource Planning (IRP)........................................................................................................................... 5 Renewables Portfolio Standard (RPS)....................................................................................................................... 6 Interconnections Process Enhancements (IPE)..................................................................................................... 6 PG&E Rule 30 Application for Transmission Service .......................................................................................... 7 Improvements to the Climate Credit.......................................................................................................................... 7 Energy Resources Recovery Account (ERRA) Forecast...................................................................................... 8 Integrated Energy Policy Report (IEPR)................................................................................................................... 9 Disconnections..................................................................................................................................................................... 9 3CE LEGISLATIVE REPORT– Fall 2025 ........................................................................................................................10 Federal Legislative Developments: ...........................................................................................................................10 State Legislative Developments:.................................................................................................................................10 Local & Community Developments:..........................................................................................................................11

REGULATORY UPDATE
Resource Adequacy (RA) - R.25-10-003
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.

Status
The Commission has opened a new proceeding to address the 2027 and 2028 RA compliance year and consider further refinements to the slice-of-day (SOD) framework. The preliminary scope of the proceeding, issued October 15, includes accreditation methodologies for long-duration energy storage resources, development of an unforced capacity (UCAP) framework to account for historical forced outage rates in the RA values of certain resources, and consideration of an hourly load obligation trading mechanism, which 3CE has strongly supported given its potential affordability benefits. The Commission held workshops on November 3 and 4 to initiate stakeholder conversations on items in scope, particularly on RA counting rules for long-duration energy storage and UCAP proposals. 3CE attended the workshop and worked with CalCCA to provide feedback on the Energy Division’s UCAP proposal, recommending continued consideration of impacts to existing contracts and the relationship between UCAP and the planning reserve margin (PRM), a buffer on top of load serving entities’ RA requirements that currently accounts for forced outages.

Next Steps
The Commission will issue a Ruling in December that formally sets the scope and schedule of the new RA proceeding. Party proposals on issues within scope will be due in late January. 3CE will continue working with CalCCA to advocate for refinements to the RA program that balance grid reliability with affordability.

Demand Response (DR) – R.25-09-004
Issue
Demand response (DR) refers to programs and rate structures that encourage customers to adjust or reduce their electricity usage in response to price signals, grid conditions, or market incentives. By shifting consumption away from peak periods or reducing load during times of grid stress, DR helps maintain system reliability, reduce the need for costly peaking resources, and integrate higher levels of renewable generation. Well-designed DR programs also empower customers to take a more active role in managing their energy use while contributing to California’s clean energy transition and greenhouse gas reduction goals. On September 29, 2025, the Commission opened a proceeding to enhance demand response in California, along with a staff report proposing to update demand response guiding principles based on predictability, reliability, consistency, cost-effectiveness, and to support the State's energy and environmental goals.

Status
The Commission plans to re-examine Key DR policies, including Dual Participation Policy, Valuation Methodologies, and Evaluation Metrics. The new proceeding states that the Commission will consider amendments to ensure continued alignment with the evolving DR landscape and the state’s policy goals and plans to bring new topics and proposals. The Energy Division staff proposal recommends a set of updated guiding principles to ensure demand response is predictable and reliable, standard and consistent, cost-effective, and supports California’s energy and environmental goals.

Next Steps
3CE worked with CalCCA to submit opening comments on November 13, 2025, which were supportive of the Commission’s overall goal in opening the rulemaking but highlighted the need to amend the scope of the proceeding and adopt DR principles that eliminate barriers and increase CCA customer participation. Despite the complexity and number of issues within the proceeding, the Commission intends to complete this effort within 24 months. The Pre-Hearing Conference is expected before the end of 2025 to determine the proceeding’s scope and schedule.

Bioenergy Market Adjustment Tariff (BioMAT) – R.22-10-010; A.25-08-015 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 with a 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 August 29, 3CE submitted the first-ever CCA application for compliance review regarding 3CE’s administration of the BioMAT program. The application and supporting testimony describe 3CE’s compliance with the BioMAT program requirements and 3CE’s prudent management of its BioMAT PPA.

The prehearing conference for 3CE’s application took place on November 19, at which parties discussed the scope and schedule of the proceeding.

Next Steps
Following the Prehearing Conference, the Commission will formally issue a scoping ruling and schedule for 3CE’s application proceeding. 3CE will continue to be engaged in the proceeding and demonstrate compliance with BioMAT program requirements to seek cost recovery for the project once it comes online, currently scheduled for 2027.

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 CPUC subsequently denied the AfR from CalCCA and the Joint CCAs, asserting that its prior findings were adequate—including referencing COL 9, which reiterates the Commission’s view that PCIA rate setting is not general ratemaking—and concluding that the evidentiary record supported the original determination.

Next Steps
On December 1, CalCCA filed a Writ of Review of the denial of the AfR at the California Appeals 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; R.25-06-019 Issue
Integrated Resource Planning (IRP) is the CPUC’s greenhouse gas (GHG) reduction planning program.

LSEs must submit IRPs every two years demonstrating that planned future procurement will produce GHG emissions below an assigned benchmark while contributing to a resource fleet that meets sector-wide GHG targets and maintaining grid reliability. Previous IRP cycles have produced three procurement mandates, which apply to 3CE and other CCAs. 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
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. On September 30, CPUC staff issued a Ruling recommending an additional procurement order during 2029-2032 of 1,500 MW annually for a total of 6,000 MW, allocated to all LSEs on a load-share basis. 3CE worked closely with CalCCA to develop comments

cautioning against a procurement order, given potential negative market and affordability impacts, significant barriers such as federal policy changes and interconnection delays, and the uncertainty of forecasted load growth, instead encouraging the Commission to prioritize the development of a predictable long-term procurement framework. The Commission recently issued the scope and schedule of the new IRP proceeding, indicating that a final decision on a potential procurement order will be issued by February 2026.

Next Steps
On December 2, 3CE will submit a compliance filing related to the Commission’s midterm reliability (MTR) procurement orders. The recent scoping memo for the new IRP proceeding establishes a May 5, 2026, deadline for individual LSE IRPs. 3CE continues to await a ruling containing final filing requirements and materials for individual integrated resource plans but has provided feedback on the Commission’s draft templates and initiated internal development in preparation for the next IRP cycle.

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

Status
On November 14, the Commission issued a Proposed Decision (PD) on the Draft 2025 RPS Procurement Plans submitted by LSEs on June 30. The PD finds that IOUs have near-term RPS needs and will be procuring RPS resources on a short- and long-term basis. The PD requests minor revisions to CCA draft plans, including 3CE’s plan, to add additional information on forecasted transportation electrification, remove unnecessary redactions, and update motions for confidentiality.

Next Steps
The Commission will vote on the proposed decision on December 18. Final RPS Procurement Plans are due 30 days after a final decision is issued, or as early as January 19. 3CE will work to update its draft RPS Procurement Plan with the requested modifications in preparation for this deadline.

Interconnections Process Enhancements (IPE) – 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 October 13, the CAISO posted a draft final proposal for the current IPE initiative, which includes a pathway to allow Energy-Only (EO) projects that have achieved commercial operations to seek deliverability. Without deliverability, resources cannot provide Resource Adequacy (RA) capacity. This represents a significant positive shift from CAISO’s initial proposal, which declined to open a pathway for EO projects to seek and receive deliverability, resulting from 3CE’s advocacy through CalCCA that it is crucial to widen the pool of resources that can provide RA value.

Next Steps
3CE will continue tracking the initiative and encourage reform to accelerate and streamline the interconnection process, including changes that will increase the availability of clean energy resources.

CAISO will issue a final proposal in late December, which it plans to take to its Board of Governors in March of 2026 for approval.

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 October 24, CalCCA submitted an Opening Brief in PG&E’s Rule 30 application advocating for permanent information-sharing requirements to ensure that CCAs receive timely notice of Rule 30 applications in their service areas, to enable the CCA to work with the customer and maximize the potential for efficient procurement. CalCCA’s Opening Brief opposes additional conditions that PG&E has sought that would slow the exchange of information and reduce customer optionality, including adoption of a new non-disclosure agreement to replace existing agreements, Privacy Risk Assessment and Third-Party Cyber-Security Reviews, and an expedited timeline for customers to provide notice of their choice of generation service provider.

Next Steps
The Commission will issue a proposed decision on PG&E’s application by late February 2026.

Improvements to the Climate Credit – R.25-07-013
Issue
The California Cap-and-Trade program, which was renamed Cap-and-Invest under AB-1207, 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. The preliminary scope of the rulemaking includes potential modifications to customer eligibility criteria, distribution timing, and customer outreach related to the Climate Credit.

Status
CalCCA filed Reply Comments on October 13, 2025, supporting recommendations regarding clear, cost-effective, and administratively simple Climate Credit messaging while requesting that all messaging be competitively neutral and developed in a way that does not advantage IOU over CCA customers. The comments, which were written with input from 3CE staff, also rejected SDG&E’s recommendation to consider the Credit’s distribution timing and eligibility in separate phases and supported PG&E’s recommendation to develop a formal process for residential master-meter configurations.

Next Steps
A Prehearing Conference was held on November 21, to determine potentially affected parties, issues within the scope, and develop a hearing schedule. 3CE staff will continue participating in the CalCCA working group and ensure the Climate Credit continues to provide 3CE customers with their share of benefits from California's Cap-and-Invest Program.

Energy Resources Recovery Account (ERRA) Forecast – A.25-05-011; A 25-05-008 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) propoer attribution between bundled and unbundled customers; (4) appropriateness of IOU proposals within the context of an ERRA forecast proceeding.

Status
At this stage in both PG&E’s and SCE’s ERRA proceedings, no new policy changes can be made—the Commission is simply confirming that the utilities followed existing rules and made no accounting or methodological errors. In PG&E’s case, CalCCA filed its Reply Brief on November 3, 2025, rebutting PG&E’s position that pre-2019 banked RECs should be valued at zero. PG&E argued that customers would “double pay” and that any credit constitutes a re-evaluation, but this conflates cost recovery with actual REC value. CalCCA maintained that customers who funded the RECs but later departed never received their benefit and therefore must receive a credit consistent with the RPS MPB. CalCCA also responded to PG&E’s arguments regarding the revised Slice-of-Day (SOD) RA proposal, reiterating that any SOD methodology changes should occur in Track 2 of the PCIA proceeding. If the CPUC declines to maintain the status quo, CalCCA recommended adopting SCE’s interim SOD method and again emphasized that applying the new RA MPB methodology to the Final 2025 RA MPB would constitute impermissible retroactive ratemaking.

In the SCE ERRA case, CalCCA identified significant unexplained shifts in SCE’s retained RA quantities, prompting data requests that confirmed two errors: incorrect inputs into SCE’s RA Optimizer and failure to apply the RA SOD effectiveness factor described in testimony. SCE corrected these issues through an amended October Update filed on October 27. CalCCA then filed its combined Opening Brief and Comments on October 29, highlighting the October Update issues and arguing that pre-2019 banked RECs used for 2026 compliance should be valued at the RPS MPB rather than at zero. As with PG&E, SCE claimed customers would be “double paying,” but CalCCA clarified that departed customers paid for— but never received—the REC benefits. CalCCA further reiterated that the new RA MPB methodology cannot be applied to the Final 2025 RA MPB without violating the prohibition on retroactive ratemaking.

Next Steps
A Proposed Decision is expected to be issued in each case before the end of November. The Final Decision will be issued by December 18.

Integrated Energy Policy Report (IEPR) –25-IEPR-03
Issue
The Integrated Energy Policy Report (IEPR) is the California Energy Commission’s (CEC) 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
The CEC continuously updates and improves the forecast to meet the state’s evolving energy planning needs. On October 8, 2025, the final 2024 IEPR Update was adopted to include analysis on how data center load was incorporated into the demand forecast and a description of the single managed forecast set for electricity planning. The specific elements of this forecast set will be used for planning and procurement in the California ISO’s Transmission Planning Process and the CPUC’s Integrated Resource Planning and is used to determine 3CE’s Resource Adequacy requirements.

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. 3CE staff attended a demand analysis working group hosted by the CEC on October 30, 2025, to discuss the load modifier draft results for the 2025 IEPR Forecast. 3CE is currently reviewing the draft report, which will be adopted early next year.

Disconnections – R. 18-07-005
Issue
The Commission opened the Disconnections proceeding in 2018 pursuant SB 598 to address disconnection rates across California’s electric and gas investor-owned utilities (IOUs) by adopting policies and rules that reduce disconnections and improve reconnection processes and outcomes for disconnected customers. Phase 1 of the proceeding adopted rules to reduce residential customer disconnections and implemented a program that helps eligible low-income customers pay down utility bill debt called the Arrearage Management Plan (AMP). Phase 2, which began in July 2022, seeks to consider additional solutions for reducing disconnection rates, implement SB 1142, which mandates utilities restore service to disconnected customers who agree to enroll in a payment plan, and considers disconnection protections for customers under extreme weather conditions.

Status
On October 13, in an Administrative Law Judge (ALJ) Ruling, the Commission provided parties the opportunity to comment on a procedural path forward for the Commission’s arrearage related assistance programs that were developed to assist customers in avoiding or paying down their past-due balances, including the Percentage of Income Payment Plan (PIPP) pilot program and the Arrearage Management Plan (AMP), which are administered by the IOUs but feature 3CE customer enrollment.

Following the program’s review from a non-profit research group, the ALJ requested parties address specific questions regarding the recommendations and potential modifications for each program.

Next Steps
CalCCA formed a working group of CCAs including 3CE to draft a response to the ALJ Ruling, which was submitted to the docket on November 14. The comments primarily focused on developing recommendations around improving CCA customer participation in the assistance programs and establishing measures to improve disconnections protections while managing customer arrears. CalCCA also recommended the Commission establish PIPP and AMP as permanent programs with modifications following the conclusion of the pilots. The deadline for the completion of this proceeding is March 2, 2026.
3CE LEGISLATIVE REPORT– Fall 2025
Federal Legislative Developments:

Recent Federal changes began to take effect, impacting 3CE’s customers:
 HR 1, the One Big Beautiful Bill Act, ended the Federal Clean Vehicle Tax Credit for individuals and businesses on September 30 and sunsets the Energy Efficiency Tax Credits on December 31, 2025.
 In response, staff developed a flier and social media toolkit for elected officials and partners to help customers maximize remaining federal savings by pairing these credits with 3CE’s Electrify Your Home and Residential Battery Rebate programs.

Growing 3CE’s Federal Presence
 Staff is working to strengthen 3CE’s capacity for federal advocacy. This quarter, meetings were held with energy developers that have active lobbyists including Pattern, Next Era, and 174 Power Global.
 Staff is in discussions with LEAN, the national CCA trade group, to explore membership.  Staff continued ongoing participation in the CalCCA Legislative Committee Federal Issues TIGER Team.

State Legislative Developments:

The California Legislative Session concluded on September 13, delivering the biggest overhaul of energy and climate policy in recent years:
 The Pathways Initiative (formerly SB 540, passed as AB 825), 3CE’s top priority, was included in the final legislative package and signed into law with previously added “poison-pill” language removed.
 SB 283, Senator Laird’s Clean Energy Safety Act, passed both houses and was signed into law, strengthening safety standards for battery energy storage systems (BESS).  Looking ahead to 2026, staff are working with CalCCA to develop joint 2026 legislative proposals focused on affordability and reliability initiatives. To that end, staff held meetings with Senate Pro Tempore Limón, Assembly Speaker Rivas, Senator Laird, Assemblymember Hart, and Assemblymember Pellerin.
3CE and CalCCA were actively engaged in advocating for, proposing amendments to, and addressing the impacts of the following bills:
 AB-303 Battery energy storage facilities. - Held in Committee.  AB-825 Energy: electricity. - Signed into law by the Governor.

 SB-254 Electricity: wildfire mitigation: rate assistance: Policy-Oriented and Wildfire Electric Reimbursement (POWER) Program. - Signed into law by the Governor.  SB-283 Energy storage systems. - Signed into law by the Governor.  SB-540 Independent System Operator: independent regional organization: California Renewables Portfolio Standard Program. – Folded into AB-825; signed into law.

In addition, staff were monitoring legislation related to transmission and infrastructure streamlining, including:
 AB-745 Electricity: climate credits. – Folded into AB-1207; signed into law by the Governor.  AB-854 California Environmental Quality Act: exemptions. – Signed into law by the Governor.  AB-941 California Environmental Quality Act: electrical infrastructure projects. – Held in committee.
 AB-1408 Electricity: interconnections. – Vetoed by the Governor.  SB-330 Electrical transmission infrastructure: financing. – Ongoing in 2026.

Local & Community Developments:

Staff wrapped up a series of 32 presentations to member agencies in 2025, highlighting progress toward achieving 100% renewable energy, outlining community-specific investments, and reviewing key legislative priorities.

In addition to this outreach, staff engaged with regional partners through a combination of meetings and presentations. Staff held meetings with the CCA Workforce & Environmental Justice Alliance, the Central Coast Climate Collaborative, the Food Bank of Santa Barbara County, and the SLO Diversity Coalition, and delivered presentations to the American Planning Association Annual Conference, Community Environmental Council’s Climate Stewards Program, Cannery Row Rotary, the Guadalupe Business Council, and varying organizations/classes of UC Santa Barbara and UC Santa Cruz.

Since October, staff provided public comment in support of clean energy and electrification at several public meetings.
 At County of Santa Cruz Supervisor Felipe Hernandez’s BESS Town Hall on October 27, 2025, staff provided expert testimony on the need for BESS systems during a community forum reviewing the County’s draft BESS ordinance.
 At the Watsonville City Council meeting on October 28, 2025, staff again provided testimony as to the system and rate-related need for BESS as the Council discussed a draft letter outlining concerns about the County’s proposed ordinance; after adding language expressing conditional support for a revised ordinance addressing those concerns, the Council voted to send the letter.  Staff provided supportive comments on REACH Code adoption before the San Luis Obispo City Council and the Goleta City Council on November 18, 2025.  Additionally, staff provided comment to the Port San Luis Harbor District in support of the Commission entering a grant agreement with the California Energy Commission.

That same day, staff delivered public comment to the Santa Cruz County Board of Supervisors as they reviewed the proposed BESS ordinance and offered direction for refinement; the Board instructed County staff to incorporate the Board’s feedback into the next draft for future consideration. Staff also

counseled the Monterey Board of Supervisors that a moratorium was not necessary in the path to prepare a BESS safety ordinance and the Board decided against a moratorium.

Regional Events
Staff participated in regional events, including the California State Association of Counties Annual Meeting, the Monterey Bay Economic Partnership State of the Region, the State of the State, and the Santa Barbara County Climate Collaborative ZEV & Clean Energy Working Group.

Community Sponsorships
3CE sponsored several community events that align with the agency’s mission, including the Building and Construction Trades Apprentice of the Year Awards, Carmel River Watershed Gala, Central Coast Sustainability Summit, Monterey Bay National Marine Sanctuary Foundation Gala, Santa Barbara Housing Conference, and the Siembra Latinos Celebration.

Community Benefits Program
Staff worked with Calpine Community Energy to launch the inaugural Community Benefits Program.

Calpine, one of 3CE’s vendor’s for data, billing, and customer support, provided a one-time grant of $160,000 to three community-based organizations (Ecology Action, SLO Climate Coalition, and Community Environmental Council) for EV purchase advising. The program utilized bilingual advisors to walk individuals through the process of purchasing an EV and applying for the rebates and tax credits to maximize savings. These outreach efforts aim to build trust that increases awareness and leads to action.

The program was launched in response to the Federal EV Tax Credit deadline, and the need to help income-qualified residents access EV savings. In a two-month period, it helped 84 3CE customers purchase EVs, 55 of whom were income qualified. In total, program advertisements reached 1.1 million customers and led to 265 sign ups. $240,000 of savings were achieved for customers through a combination of 3CE’s rebates, tax credits, and other incentives.

Staff Report Item 4
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 August 31, 2025 DATE: December 10, 2025
RECOMMENDATION:

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

SUMMARY:

Over the eleven months ending August 31, 2025, operating revenues amounted to $600.0 million, and operating expenses totaled $551.8 million for a net operating income of $48.2 million. Non-operating revenue of $10.1 million, driven by interest and investment returns, netted the month with a total net position increase of $58.3 million.

Year-to-date operating revenue is $71.9 million below budget, primarily due to a lower-than-expected retail load partially offset by settlement fund receipts. 3CE 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 and investment accounts, and interest on collateral exceeded the budget with a variance of $3.7 million due to higher-than-anticipated investment yields. Year-to-date total revenue (operating & non-operating revenue) is $68.2 million lower than the budget, an unfavorable variance of 10.0%.

Year-to-date operating expenditures excluding capital outlay are $72.9 million below budget, a variance of 11.7%. This variance is primarily attributable to lower-than-anticipated energy costs, which came in $64.8 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

(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 $8.1 million lower than budget due to less-than-planned costs for contracted services, staff vacancies, and energy programs. The capital outlay was below budget by $12.7 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 $85.6 million lower than the budget, a favorable variance of 13.4%.

The net position at the end of August 31, 2025, totaled $276.5 million, a $58.3 million increase from the start of the fiscal year. The increase is primarily due to prepaid expenses for RA, deposits held by counterparties to meet collateral requirements, and growth in accrued revenue, accounts receivable, and capital assets. The increase is further supported by reduced accounts payable, other accrued liabilities, and security deposits from counterparties. Cash, cash equivalents, and investments totaled $213.9 million, a $12.8 million decrease from the start of the fiscal year. The reduction in liquidity was primarily attributed to the elevated cost of electricity invoices, including the prepayment of expenses for RA.

FISCAL IMPACT:

There is no financial impact associated with receiving this report.

ATTACHMENT(S):

August 31, 2025 Financial Report

Compiled Financial Statements 1
Compiled Budgetary Comparison Schedule 6
Budget Variance Commentary 8
Investment Summary 9
Accounts Receivable Aging Summary 10
Table of Contents

FINANCIAL REPORT
Fiscal Year to Date
As of August 31, 2025

1 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 August 31, 2025, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the eleven 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
October 2, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com

Current assets
Cash and cash equivalents 118,029,196 $
Accounts receivable, net of allowance 58,196,911
Accrued revenue 43,631,896
Other receivables 2,325,198
Investments 90,876,892
Prepaid expenses 18,397,414
Deposits 30,063,348
Loan receivable 194,301
Total current assets 361,715,156
Noncurrent assets
Investments 5,005,300
Deposits 21,055
Loan receivable 1,135,778
Capital assets, net of depreciation and amortization 6,461,767 Total noncurrent assets 12,623,900
Total assets 374,339,056
Current liabilities
Accrued cost of electricity 80,085,390
Accounts payable 2,140,613
Other accrued liabilities 1,244,435
User taxes and energy surcharges due to other governments 2,012,394 Security deposits - energy suppliers 2,379,299
Lease liability 349,323
Total current liabilities 88,211,454
Noncurrent liabilities
Security deposits - energy suppliers 9,110,025
Lease liability 520,264
Total noncurrent liabilities 9,630,289
Total liabilities 97,841,743
Net investment in capital assets 5,519,964
Unrestricted 270,977,349
Total net position 276,497,313 $

NET POSITION
As of August 31, 2025

STATEMENT OF NET POSITION

CENTRAL COAST COMMUNITY ENERGY
ASSETS

LIABILITIES

OPERATING REVENUES
Electricity sales, net 591,790,598 $
Liquidated damages 8,101,745
Other income 85,968
Total operating revenues 599,978,311

OPERATING EXPENSES
Cost of electricity 514,491,001
Contract services 12,945,743
Staff compensation 9,447,004
Program incentives 12,422,142
Other operating expenses 1,900,665
Depreciation and amortization 559,127
Total operating expenses 551,765,682
Operating income (loss) 48,212,629

NONOPERATING REVENUES (EXPENSES)
Investment income 10,163,628
Interest and financing costs (42,642)
Gain (loss) on disposal of asset (1,745)
Nonoperating revenues (expenses) 10,119,241
CHANGE IN NET POSITION 58,331,870
Net position at beginning of period 218,165,443
Net position at end of period 276,497,313 $
Eleven Months Ended August 31, 2025

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CENTRAL COAST COMMUNITY ENERGY

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 575,215,262 $
Receipts of liquidated damages 8,101,745
Receipts from wholesale sales and other operating receipts 23,474,158 Receipts of deposits and collateral 52,686,774
Payments to suppliers for electricity (547,910,421)
Payments for other goods and services (15,226,743)
Payments of deposits and collateral (69,786,738)
Payments for program incentives (14,618,613)
Payments for staff compensation (9,342,136)
Payments of taxes and energy surcharges to other governments (9,831,800) Net cash provided by operating activities (7,238,512)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments of lease liability (340,007)
Purchases of capital assets (3,147,128)
Net cash provided (used) by capital and related financing activities (3,487,135)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 6,481,072
Proceeds from sales and maturities of investments 137,897,000 Principal payments received of loan receivable 190,718
Purchase of investments (166,353,628)
Net cash provided (used) by investing activities (21,784,838) Net change in cash and cash equivalents (32,510,485)
Cash and cash equivalents at beginning of year 150,539,681 Cash and cash equivalents at end of period 118,029,196 $ Change in fair value of investments 3,398,999 $
Change in interest income receivable 283,557 $

NONCASH CAPITAL FINANCING ACTIVITIES
Capital acquisitions included in accounts payable
and other liabilities 72,216 $
Eleven Months Ended August 31, 2025

STATEMENT OF CASH FLOWS

CENTRAL COAST COMMUNITY ENERGY

NONCASH INVESTING ACTIVITES

Operating income (loss) 48,212,629 $
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation and amortization expense 559,127
(Increase) decrease in:

Accounts receivable, net of allowance (13,759,016)
Accrued revenue (12,683,365)
Other receivables 4,321,890
Prepaid expenses (16,568,190)
Deposits (18,367,371)
Increase (decrease) in:

Accrued cost of electricity 3,312,144
Accounts payable (2,794,591)
Other accrued liabilities 456,085
User taxes and energy surcharges due to other governments 35,246 Security deposits - energy suppliers 36,900
Net cash provided by operating activities (7,238,512) $

CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
Eleven Months Ended August 31, 2025

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY OPERATING ACTIVITIES

1 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 eleven months ended August 31, 2025, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

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

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

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

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

Maher Accountancy
San Rafael, CA
October 2, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com

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

REVENUES AND OTHER SOURCES
Electricity sales, net $ 71,235,846 $ 76,188,025 $ (4,952,179) -6% $ 591,790,598 $ 671,830,632 $ (80,040,034) -12% $ 745,962,356 $ 154,171,758 Revenue for damages - - - na 8,101,745 - 8,101,745 n/a - (8,101,745) Interest and investment returns 1,002,316 583,333 418,983 72% 10,163,628 6,416,663 3,746,965 58% 7,000,000 (3,163,628) Other income 5,271 5,700 (429) -8% 84,223 62,700 21,523 34% 68,400 (15,823) Total revenues and other sources 72,243,433 76,777,058 (4,533,625) -6% 610,140,194 678,309,995 (68,169,801) -10% 753,030,756 142,890,562

EXPENDITURES AND OTHER USES
Current Expenditures
Cost of energy 78,619,721 89,623,952 11,004,231 12% 515,898,244 580,699,508 64,801,264 11% 665,267,116 149,368,872 Salaries and benefits 1,099,897 1,048,820 (51,077) -5% 9,447,004 11,537,021 2,090,017 18% 12,585,842 3,138,838 Services and supplies 2,999,527 2,931,483 (68,044) -2% 26,201,313 32,246,308 6,044,995 19% 35,177,798 8,976,485 Capital outlay 9,123 1,443,167 1,434,044 99% 3,167,033 15,874,833 12,707,800 80% 17,318,000 14,150,967 Total current expenditures 82,728,268 95,047,422 12,319,154 13% 554,713,594 640,357,670 85,644,076 13% 730,348,756 175,635,162 Surplus (deficit) (10,484,835) $ (18,270,364) $ 7,785,529 $ 55,426,600 $ 37,952,325 $ 17,474,275 $ 22,682,000 $ (32,744,600) $ Annual

CENTRAL COAST COMMUNITY ENERGY

BUDGETARY COMPARISON SCHEDULE
One Month and Eleven Months Ended August 31, 2025
Month
Variance
Favorable
(unfavorable)
Year-To-Date
Variance
Favorable
(unfavorable)

CCA Program surplus/(deficit)
per budgetary comparison schedule: 55,426,600 $
Adjustments needed to reconcile to the changes in net position in the Statement of Revenues, Expenses and Changes in Net Position:

Add back GASB 87 lease amortization not in operating budget 297,364 Subtract depreciation expense (559,127)
Add back capital asset acquisitions 3,167,033
Change in Net Position 58,331,870 $

REVENUES, EXPENSES AND CHANGES IN NET POSITION

CENTRAL COAST COMMUNITY ENERGY

BUDGET RECONCILIATION TO STATEMENT OF
Eleven Months Ended August 31, 2025

Budget Item YTD Variance Comment
Electric Sales Revenue (11.9%) 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 (11.2%) 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 (18.1%) Staffing expenses are under budget due to the timing of new hires.

Professional Services (31.2%) This category includes accounting, IT, technical and other consultants.

Legal Costs (50.5%) This category includes outside legal costs for regulatory and energy procurement needs.

Marketing and customer enrollment (25.0%) Variance is mostly due to the lower than anticipated costs of recent customer enrollments.

Data Management Services 1.6% These fees non-discretionary and are charged on a per customer basis.

Utility Service Fees (4.9%) These are PG&E and SCE fees charged on a per customer basis.

Other General & Administrative (62.4%) This category includes occupancy costs, industry membership dues, and other general and administrative costs.

Energy and Related Programs (1.3%) Programs expenses have generally been delayed until future periods Budget Commentary for significant items

CENTRAL COAST COMMUNITY ENERGY
October 1, 2024 through August 31, 2025

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

CASH AND CASH EQUIVALENTS
River City Bank/ Chase - Money Market and
other Interest Earning Accounts
Funds Invested - Average Balance $ 114,669,913 99,664,821 $ 87,375,820 $ 86,192,993 $ 97,066,887 $ 102,454,815 $ 111,974,304 $ 107,649,306 $ 103,295,944 $ 82,696,308 $ 90,158,778 $ Gains/Losses/Interest $ 380,768 3,882,039 $ 421,162 $ 324,104.99 317,642.68 320,213.20 371,348.25 391,318.15 386,324.48 356,934.61 292,737.82 319,484.99 Average APY 4.58% 4.41% 4.45% 4.42% 3.96% 4.35% 4.19% 4.31% 4.15% 4.25% 4.25%

INVESTMENTS
Schwab/Fidelity
Funds Invested - Average Balance $ 126,158,519 125,703,797 $ 126,652,212 $ 127,096,361 $ 127,561,770 $ 127,989,614 $ 128,449,074 $ 128,806,745 $ 129,263,682 $ 129,646,474 $ 130,201,722 $ Gains/Losses/Interest $ 451,482.54 4,903,361 308,267.24 504,316.11 576,572.23 414,554.41 494,803.49 379,880.26 240,759.17 497,644.42 464,926.16 570,155.31 Average APY 4.31% 2.93% 4.78% 5.44% 3.90% 4.64% 3.55% 2.24% 4.62% 4.30% 5.25%

CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2024 through August 31, 2025

Current 0 - 30 Days 31 - 60 Days 61 - 90 Days > 91 Days A/R Balance $ 14,615,893 31,900,132 $ 2,758,716 $ 814,379 $ 8,107,791 $ 58,196,911 $

CENTRAL COAST COMMUNITY ENERGY
Summary of Accounts Receivable, Net of Bad Debt Allowance As of August 31, 2025

Staff Report Item 5
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 September 30, 2025
DATE: December 10, 2025
RECOMMENDATION:
3CE investment performance report for the period of October 1, 2024, through September 30, 2025.

BACKGROUND:

As of September 30, 2025, Central Coast Community Energy held $222.9 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, capital preservation, 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.

In the fourth quarter, 3CE established a new account with West Coast Community Bank to further diversify its financial holdings. Selecting a local banking partner within 3CE’s service area supports community investment while providing a secure vehicle to hold funds designated for capital outlay from the Capital Infrastructure Reserve.

DISCUSSION/ANALYSIS:
3CE ended the quarter on September 30, 2025, with investment holdings that aligned with the Investment Policy and a strategy of maintaining sufficient cash to meet operating costs, including counterparty collateral calls. The strategy consists of holding three classes of funds: cash to meet ongoing operating costs, liquidity reserves to meet collateral calls, capital acquisition, and unforeseen costs, and short-term investments to meet reserves, including the strategic reserve and energy rate

stabilization funds. As of September 30, 2025, 3CE held $222.9 million in operating and investment accounts. The table below lists the cash and investment balances by account type.

Cash and Investment Mix Holdings by Institution
Account Type Institution Balance Investment Mix
Operating
River City Bank $76,322,375
Cash (sweep) - $69.0M
money market - $0.3M
cash (operating) - $4.0M
letters of credit - $2.9M
Chase
$11,451,091 cash (held for collateral)
West Coast Community Bank $4,554,975 money market
Investment
Schwab $64,631,557
Treasuries - $60.7M
cash (sweep) - $3.5M
money market - $0.5M
Fidelity $65,928,781 Treasuries - $64.5M
money market - $1.4M
Total $222,888,780
3CE employs a conservative, passive investment strategy in which fixed-income securities—primarily U.S. Treasury notes and bills—are held to maturity, allowing the agency to realize coupon income and discounts over time. As of September 30, 2025, 3CE managed $130.7 million in investments across its Schwab and Fidelity brokerage accounts. During the fourth quarter, Treasury yields averaged between

3.50% and 4.38%. Short-term Treasuries with maturities under one year represented approximately 92% of total holdings, while two longer-term Treasuries, each valued at $5.0 million, mature in the second and third quarters of 2027. All investments are rated high-grade or better, consistent with 3CE’s prudent investment policy.
3CE’s investment mix aligns with the Investment Policy and California Government Code. As of September 30, 2025, 3CE held $90.9 million in cash and cash equivalents, $126.6 million in U.S.

Treasuries, and $5.4 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 3.1%.

Cash and Investment Mix Holdings
Type Market Value
% of
Portfolio
Permitted by
CA Government Code
Cash and cash equivalents $90,914,600 40.8% 100%
Money Market Funds $6,833,221 3.1% 20%
U.S. Treasuries $125,140,959 56.1% 100%
Total $222,888,780 100.0%

The FY 2024-25 Adopted Budget, with appropriations of $730.3 million, included estimated investment revenues of $7.2 million. In the fourth quarter, investment earnings from operating and investment accounts netted $9.9 million, $4.9 million from interest on cash and money market accounts, and $4.9 million from short-term investments, mostly from Treasuries. Interest earned on 3CE collateral held by counterparties totaled $1.2 million. To date, the total investment and interest earnings from internal liquidity and counterparty collateral are $11.1 million. This year-end estimate is higher than the $10.8 million estimated in the mid-year budget forecast.

As of September 30, 2025, 3CE has 114 days of cash on hand. This is based on the total cash and equivalents of $222.9 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 continues to proactively diversify its financial institutional partnerships, including the recent addition of an operating account with West Coast Community Bank. The agency strategically deploys cash and short-term investments to capture favorable yields while maintaining sufficient liquidity to meet operating expenses and collateral requirements.

ATTACHMENT(S):

None.

Staff Report Item 6
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: CEO Report
DATE: December 10, 2025

COMMUNITY ADVISORY COUNCIL REPORT
At its October 1, 2025 meeting, the Community Advisory Council (CAC) received updates on Central Coast Community Energy’s (3CE) recent activities and provided input on agricultural electrification initiatives. Staff reported on highlights from 3CE’s Annual Meeting, including budget approval, new CAC appointments, and policy developments such as the Governor’s signing of the Pathways Bill and the implementation of IOU base service charges.

The CAC reviewed the performance of the Agricultural Electrification Program, which has supported over $4.9 million in all-electric ag equipment purchases but continues to face challenges with participation. Members also discussed plans for upcoming focus group meetings to identify barriers and opportunities for agricultural electrification, consistent with the CAC’s FY 2025–26 Workplan. Finally, staff presented an update on 3CE’s Energy Programs portfolio, noting strong participation growth, over 5,300 MT of GHG reductions achieved year-to-date, and continued expansion of residential, commercial, and agricultural electrification efforts.

DISTRIBUTED ENERGY RESOURCES MANAGEMENT SYSTEM (DERMS) / VIRTUAL POWER PLANT (VPP) On October 24th, 3CE published a Request for Proposals seeking a vendor to provide a DERMS platform and related implementation services. The DERMS will serve as a core platform for 3CE’s VPP and Distributed Energy Resources (DER) pilot programs.

EXTENSION OF 3CE MTR PROCUREMENT ORDER OBLIGATION GRANTED The CPUC approved 3CE’s request to extend the compliance deadline for Long Lead Time (LLT) resources from June 1, 2028, to June 1, 2031. This extension provides 3CE with flexibility to accommodate project development timelines and evolving market conditions, while preserving the long-term value of contracts, particularly those for zero-emitting and long-duration energy storage projects where 3CE was

an early actor. The Commission granted the extension based on 3CE’s demonstrated good-faith efforts to meet the original compliance deadline and the continued expectation that these vital clean energy projects will come online by June 1, 2031.

INTEGRATED RESOURCE PLANNING RULING SETS TIMELINE FOR STATEWIDE PROCUREMENT PLANNING The CPUC issued its 2025 Integrated Resource Planning Scoping Memo, which outlines the schedule and scope for the next statewide planning cycle. Load-Serving Entities, including 3CE, must file their Integrated Resource Plans (IRP) by May 5, 2026. The proceeding also establishes a February 2026 decision date for potential interim reliability procurement. Additionally, beginning December 1, 2025, the CPUC is enforcing compliance with prior procurement orders through this new proceeding. The Scoping Memo signals continued coordination on the Reliable Clean Power Procurement Program (RCPPP) and emphasizes development of the next Preferred System Plan portfolio that will guide long-term reliability, decarbonization, and affordability planning statewide.

OPERATIONS BOARD FACILIATES DEVELOPMENT OF COMPRESSED AIR ENERGY STORAGE SYSTEM At its November 12 meeting, the Operations Board unanimously approved an amendment to 3CE’s energy storage agreement with Hydrostor for a 25 year, 200MW advanced compressed air energy storage system. As the primary off taker of this innovative non-lithium energy storage project, 3CE is leading the California energy industry in scaling new battery storage technologies. The project is expected to be online in December 2030.

SANTA BARBARA OFFICE SPACE
3CE entered into a 5-year lease agreement for 2,500 square feet of office space at 820 State Street in Santa Barbara. 3CE currently has 3 employees that reside in Santa Barbara and routinely has interested qualified candidates for positions from Santa Barbara. The 820 State Street office location will support future recruitment while also providing a physical local presence in Santa Barbara and supporting our local Boardmembers and community engagement. We anticipate moving into the office by January 1, 2026.

ATTACHMENT(S):

1. Customer Outreach and Engagement Report

Customer Enrollment and
Engagement Report
StaƟsƟcs and AcƟvity
October 1 – 31, 2025
Central Coast Community Energy
CommunicaƟons and Outreach
November 2025

2 Community and Government Relations ........................................................................................ 3 Local Advocacy ............................................................................................................................ 3 3CE Enrollment Profile ................................................................................................................. 4 Call Center Statistics ................................................................................................................... 5 Monthly Opt-Outs ..................................................................................................................... 6 Media Outreach ........................................................................................................................... 7

3 Community and Government RelaƟons
Local Advocacy
In October, the Community and Government RelaƟons department delivered annual updates at public meeƟngs for the CiƟes of Solvang, Salinas, Sand City, and Watsonville. Staff held individual meeƟngs with five local elected officials.

AddiƟonal outreach included meeƟngs with the SLO Diversity CoaliƟon, the Food Bank of Santa Barbara County, and the CCA Workforce & Environmental JusƟce Alliance. Staff also delivered presentaƟons to the Guadalupe Business AssociaƟon, UCSB Campus Democrats, a class at the University of California, Santa Cruz, and the Cannery Row Rotary, providing a general update on 3CE’s energy programs and the upcoming sunset of federal tax credits.

Staff engaged in mulƟple community events, including a Santa Maria Valley Chamber of Commerce Talk with City Community Development Director Chinin Dow, the Santa Barbara County Climate CollaboraƟve ZEV/Clean Energy working group, Solvang State of the City, and the Central Coast Sustainability Summit. Staff also engaged in events in the Northern region of 3CE’s service area, including the Salinas Valley Chamber of Commerce’s Legacy of Leadership event, the Monterey Peninsula Chamber of Commerce’s Business Expo, and the Monterey Bay Economic Partnership State of the Region.

State Advocacy
The California State Legislature has adjourned unƟl Monday, January 5. During the final days of Session, bills supported and acƟvely advocated for by 3CE were signed by the Governor, including AB 825 (formerly SB 540, the Pathways IniƟaƟve) and SB 283, the Clean Energy Safety Act, authored by Senator Laird.

In October, staff aƩended Assemblymember Gregg Hart’s Sidewalk Office Hours in Nipomo.

Staff conƟnue to explore addiƟonal policy reforms that could help reduce customer energy bills and further advance the state’s transiƟon to renewable energy, parƟcipaƟng in CalCCA’s LegislaƟve CommiƩee, where several bill proposals were considered.

Federal Advocacy
Staff are preparing a flyer and social media toolkit to communicate the December 31st sunset of the Federal Energy Efficiency and ResidenƟal Clean Energy Tax Credit, and to support elected officials in promoƟng our energy programs.

4 3CE Enrollment Profile
As of November 1st, 2025
Member Agency 3CE Accounts % of Eligible Load Eligible Load % of Eligible Load ARROYO GRANDE 8,106 93.90% 51,716,606 94.12%
ATASCADERO 12,369 88.34% 84,290,707 89.88%
BUELLTON 2,298 96.51% 27,660,173 94.84%
CAPITOLA 5,761 96.18% 38,529,428 94.90%
CARMEL 3,719 97.53% 25,382,415 98.19%
CARPINTERIA 5,777 94.66% 44,537,739 90.66%
DEL REY OAKS 799 95.12% 4,566,121 97.02%
GOLETA 13,233 94.45% 181,368,277 95.53%
GONZALES 2,023 86.68% 43,433,944 97.76%
GREENFIELD 4,179 87.04% 60,700,276 97.21%
GROVER BEACH 6,417 96.09% 30,340,813 97.55%
GUADALUPE 2,661 97.29% 28,169,034 99.59%
HOLLISTER 13,237 88.76% 126,219,713 94.09%
MARINA 9,159 93.77% 69,650,401 93.60%
MONTEREY 14,547 95.87% 160,653,873 95.51%
MONTEREY CO 45,152 92.32% 822,929,233 96.54%
MORRO BAY 6,512 96.99% 35,830,825 96.39%
PACIFIC GROVE 8,323 96.64% 44,285,298 97.86%
PASO ROBLES 14,055 90.48% 121,902,457 90.84%
PISMO BEACH 5,617 95.17% 47,529,450 96.57%
SALINAS 42,871 89.16% 440,296,623 94.09%
SAN BENITO CO 9,280 90.22% 148,131,987 95.87%
SAN JUAN BAUTISTA 905 91.69% 5,157,474 94.95%
SAN LUIS OBISPO 24,652 96.20% 199,771,588 96.87%
SAN LUIS OBISPO CO 55,290 91.18% 443,994,212 94.94%
SAND CITY 413 96.05% 7,785,339 99.22%
SANTA BARBARA CO 50,337 93.58% 705,222,083 79.71%
SANTA CRUZ 23,453 96.67% 166,045,693 97.18%
SANTA CRUZ CO 53,629 94.80% 393,146,805 95.78%
SANTA MARIA 32,254 97.47% 307,507,468 91.68%
SCOTTS VALLEY 5,133 96.41% 62,806,247 97.91%
SEASIDE 10,841 93.96% 72,152,280 96.72%
SOLEDAD 4,551 87.55% 33,028,549 94.00%
SOLVANG 2,996 96.43% 27,242,061 96.55%
WATSONVILLE 14,388 90.55% 158,446,295 94.29%
Total 514,937 93.17% 5,220,431,488 92.72%

5 Call Center StaƟsƟcs
October 2025
Call Volume & Topics
Log
Monthly Call Stats for October 2025
SCE PG&E Total
Total Incoming Calls 198 910 1108
Calls Connected to Agents 195 905 1100
Average Seconds to Answer 8 secs 8 secs 8 secs
% Calls Answered within 45 Seconds 97.44% 96.37% 96.90% Abandon Rate 0% 0.33% 0.27%
ged Call Center Topics

Rebates
49%
Billing Inquiry
19%
Net Energy
Metering
11%
General Info
11%
Split Billing
10%
TOP 5 CALL CENTER TOPICS

6 Monthly Opt-Outs
Spoke with the
Representative
32%
Interactive Voice
Response
41%
Website
27%

OPT-OUTS BY METHOD

AGRICULTURE
1% COMMERCIAL
6%

RESIDENTIAL
93%

OPT-OUTS BY RATES CLASS
Concerns about
Government-Run
Power Agency
1%
Decline to Provide
9%
Dislike Being
Automatically
Enrolled
34%
Have Renewable
Energy Reliability
Concerns
2%
Other
15%
Rate or Cost
Concerns
30%
Service or Billing
Concerns
9%
Reason Given for Opt-Out

7 Media Outreach
October 2025
Facebook
• Followers: 2.24K
• Page Reach: 1.9K
• Page Impressions: 2.93K
• Post Reach: 1.61K
• New page followers: 4
• Top Performing Content:

Calling all 3CE members! We’re partnering with OhmConnect, a FREE service available to California residents that rewards members for reducing energy usage. Because of our partnership with OhmConnect, 3CE members get an exclusive offer at sign up! Join today, link in bio!

Facebook En Espanol
• Followers: 246
• Page Reach: 9
• Page Impressions: 27
Instagram
• Followers: 1.27K
• New Followers: 10
• Reach: 861
• Top Performing Content:

Hey Santa Barbara! Thinking about going electric? ⚡🚗
Join the Santa Barbara County Air PolluƟon Control District for a free, in-person workshop to learn how the Driving Clean Assistance Program (DCAP) can help income-qualified Californians afford a new or used EV.
💰 Earn up to $12,000 when you trade in your old gas car for an EV, plus $2,000 for charging opƟons! 📅 Wednesday, October 29 | 11AM–1PM
📍 260 N. San Antonio Rd, Suite A, Santa Barbara
Drop in any Ɵme to get help with your applicaƟon — no appointment needed! #CleanAir #DriveElectric #SantaBarbara #EVSavings #CentralCoast

8 TwiƩer (X)
• Followers: 1.1K
• New Followers: 0
• Top Performing Content:

Calling all 3CE members! We’re partnering with @ohmconnect, a FREE service available to California residents that rewards members for reducing energy usage. Because of our partnership with @ohmconnect, 3CE members get an exclusive offer at sign up! Join today, link in bio!

LinkedIn
• Followers: 3.24K
• New Followers: 45
• Post Clicks: 178
• Top Performing Content: 뢂뢃뢄뢅뢆뢇 Big news! Central Coast Community Energy’s Electrify Your Home program is BACK – and better than ever! 芢芣
Starting October 1st, homeowners and renters can access cash rebates to upgrade to clean, all-electric appliances like:
껠껡 Heat pump HVAC systems
겛 Heat pump water heaters
葘葙葚葛 Induction cooktops & ranges
脥腪腫腬腭 Portable heat pump space conditioners
These upgrades mean healthier homes, lower energy bills, and a cleaner future for our communities.
곸곹곺곻과곽 Learn more & apply after installation: https://lnkd.in/ggSAgZmM hashtag#ElectrifyYourHome hashtag#CleanEnergy hashtag#CentralCoast

Earned Media
• KSBY-TV: 10/3/2025: hƩps://hispanicbusinesstv.com/new-flights-out-of-slo-electric-rebates-and-check-out-this-corn-maze/ • Santa Barbara Independent: 10/15/2025:
hƩps://www.independent.com/2025/10/15/newsoms-energy-package-sparks-regional-momentum/

9 • Santa Maria Times: 10/18/2025: hƩps://santamariaƟmes.com/news/local/govt-and-poliƟcs/council-to-discuss-immigraƟon-ad-hoc-commiƩee-tuesday/arƟcle_47554df6- 1842-4fd2-9646-4dcae24f5b65.html
• Santa Barbara Independent: 10/22/2025:
hƩps://www.independent.com/2025/10/22/jackie-carrera-ashley-costa-and-das-williams-to-be-honored-at-2026-leap-awards/

Staff Report Item 7
TO: 3CE Policy Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: Receive an update on the investor-owned utilities’ Energy Resource Recovery Account proceedings and customer impacts of CPUC’s Power Charge Indifference Adjustment reformulation
DATE: December 10, 2025
RECOMMENDATION:

This recommends the Policy Board receive an update on the investor-owned utilities’ Energy Resource Recovery Account proceedings and customer impacts of CPUC’s Power Charge Indifference Adjustment reformulation
BACKGROUND:

The Power Charge Indifference Adjustment (PCIA) is a regulatory fee established by the California Public Utilities Commission (CPUC) for the benefit of investor-owned utilities (IOUs). The PCIA is intended make IOUs financially “indifferent” when a subset of customers receive generation services form a Community Choice Aggregator (CCA) or retail Electric Service Provider. The PCIA is collected by the IOUs and intended to compensate the IOUs for above-market costs related to their power contracts or resources that were acquired prior to a customer’s departure.

The CPUC sets the PCIA regulatory fee annually in the IOUs’ Energy Resource Recovery Account (ERRA) proceedings. The CPUC’s methodology sets a different “vintage” PCIA fee for every year, with the IOU bundled customers always being the current year. The main drivers of the PICA fee are the cost of the IOU generation portfolios minus its market value. The Market value is determined by CPUC-determined “market price benchmarks” (MPBs) for the values of energy, Resource Adequacy, and Renewable Portfolio System credits.

The PCIA fee has been highly volatile for all Californians and can swing dramatically from year-to-year due to the dynamic between fixed legacy procurement costs, fluctuating market prices, and how CPUC decisions and methodology impact various inputs to the PCIA. Since the IOU portfolio costs are

considered proprietary, only general information is provided to the actual input costs that are proved to the CPUC by the IOUs.

At its September meeting, staff advised the Policy Board that, while the precise impacts would remain unknown until the end of December 2025, the CPUC’s adoption of D.25-06-048 in June of 2025 could significantly alter MPBs and impact customers. The PCIA is still in a regulatory preliminary stage, recent proposed decisions are signaling a dramatic PCIA fee increase that will be allowed in 2026. If this change in methodology is allowed it will cause a shift in costs and in 2026 negatively impact financial “indifference” between bundled and unbundled customers. While over multiple years financial “indifference” may level out, unbundled customers are projected to carry a majority of costs upfront.

DISCUSSION/ANALYSIS:

The CPUC’s June decision to change methodology to setting the PCIA fee retroactively will inflate the PCIA for nearly 15 million CCA customers shifting significant cost responsibility from IOU customers to those served by CCAs.

The CPUC initially set MPBs for calculating its PCIA fee in 2025 in the December 2024 ERRA forecast decision. Utilizing an accelerated 4-month schedule, however, the CPUC adopted D.25-06-049 significantly revising how the MPB are determined and retroactively applying that decision back to its December 2024 ERRA forecast. This fast-tracked retroactive application of the MPBs meant that the PCIA would increase in 2026 and that the IOUS could shift costs allocated to IOU customers under the original 2025 ERRA forecast to CCA customers in the 2026 ERRA forecast.

PG&E PCIA MPB 2025 Forecast 2025 Revised 2026 Forecast Total YOY % Change
RA ($/kW-mo)
System RA
Local RA
Flex RA
$40.31
$13.29
$16.97
$11.21
$11.21
$11.21
$11.53
$11.53
$11.53
(71.4%)
(13.24%)
(32.06%)
RPS ($/MWh) $71.24 $63.86 $62.45 (12.34%)
System Power ($/MWh)
On Peak
Off Peak $55.02
$53.18
$50.20
$52.31
(8.76%)
(1.64%)

SCE PCIA MPB 2025 Forecast 2025 Revised 2026 Forecast Total % Change
RA ($/kW-mo)
System RA
Local RA
Flex RA
$40.31
$11.23
$16.47
$11.21
$11.21
$11.21
$11.53
$11.53
$11.53
(71.40%)

2.67%
(30.0%)
RPS ($/MWh) $71.24 $63.86 $62.45 (12.34%)
System Power ($/MWh)
On Peak
Off Peak $41.54
$47.84
$41.54
$47.84
$39.90
$48.48
(3.95%)

1.34%
PG&E advocated for the change to reduce PCIA volatility and notes the primary driver in the reduction of MPBs include the CPUC’s adoption of D.25-06-048 and significant reductions in CAISO market electricity prices and corresponding revenues.

The CPUC’s retroactive changes in MPBs are expected to be implemented as part of the IOU rates effective January 2026. A further PCIA proceeding is expected to begin in February 2026 and that proceeding contemplates more significant changes to the PCIA structure and calculations. 3CE is working proactively with CalCCA, the CCAs statewide trade association, to advocate for a stable, transparent approach to PCIA that promotes true “indifference” among customers and lower overall costs rather than the current paradigm of simply reallocating costs among different classes of customers.

On December 1, CalCCA filed a Petition for Writ of Review with the California Court of Appeal, Third District, challenging the CPUC’s adoption of D.25-06-048. The petition argues that that the CPUC’s rulemaking violates California’s prohibition of retroactive ratemaking, the record lacked evidence supporting revisions to the 2025 benchmark, and that the retroactive application creates a sudden cost impact for all Californian electric utility users that undermines the State’s affordability goals.

FISCAL IMPACT:

There is no direct financial impact on 3CE associated with this update. The PCIA is a CPUC regulatory fee that is charged and collected by the IOUs for their benefit, meaning there is no impact to 3CE costs.

Staff will continue evaluating the impact on customers.

CONCLUSION:

The CPUC’s retroactive changes to the PCIA MPBs is a significant departure from assumptions that informed the IOUs 2025 rates. The CPUC’s decision is effectively a significant shift away from financial “indifference” increasing 2026 regulatory fees to unbundled customers. Staff is working through CalCCA to advocate on behalf of all Californians to reduce the volatility and impact of the PCIA.

ATTACHMENT(S):

None.