Operations Board of Directors
February 25, 2026
Operations Board of Directors
Closed Session
Consent Calendar
3. Approve minutes from the January 14, 2026, meeting of the Operations Board of Directors
4. FY 2025-26 Energy Programs Update
5. CPUC Regulatory Update
6. Financial Report for the period of October 1, 2025, through November 30, 2025
7. Investment Performance Report for the period of October 1, 2025, through December 31, 2025
Item 2
Adopt Resolution No. PB-2026-01 approving the electric generation rates through April 2027 4 CEO Report
Community Advisory Council Report
State Legislative Update
5 Item 9
Adopt Resolution Nos. OB-2026-04 and OB-2026-05 approving and authorizing the CEO to execute:
(a) an Amendment to the Energy Storage Agreement (ESA) with MRP Pacifica Marketing II, LLC (MRP) for the Panoche Hybrid Project as well as any necessary ancillary documents to delay the Guaranteed Commercial Operation Date by 14 months for a new Guaranteed Commercial Operation Date of June 1, 2027, in an amount not to exceed $168,000,000; and, (b) an Amendment to the ESA with MRP for the Midway Hybrid Project as well as any necessary ancillary documents to delay the Guaranteed Commercial Operation Date by 14 months for a new Guaranteed Commercial Operation Date of June 1, 2027, in an amount not to exceed $368,000,000 6 Timelines
Project details and Proposed Amendment
Counterparty
MRP Pacifica Marketing LLC
SunZia Wind PowerCo LLC
Project Name
Panoche Hybrid
Midway Hybrid
Product
Existing Natural Gas Peaker Power Plants with new construction Battery Energy Storage Systems (BESS), providing Resource Adequacy (RA) benefits and dispatchable energy Natural Gas Peaker Power Plant with BESS, providing Resource Adequacy (RA) benefits and dispatchable energy Delivery Term
15 years
January 1, 2026 – December 31, 2040
15 years
January 1, 2026 – December 31, 2040
Contract Capacity
52 MW Natural Gas Simple Cycle Turbine
57 MW 1-hour discharge duration Lithium-Ion Battery Energy Storage System (BESS) 120 MW Natural Gas Simple Cycle Turbine
120 MW 1-hour discharge duration Lithium-Ion Battery Energy Storage System (BESS) % of 3CE RA Obligation
5%
13%
Location
Firebaugh, Fresno County
Firebaugh, Fresno County
Not to Exceed Amount
$168,000,000
$368,000,000
3CE staff have been able to negotiate a proposed amendment which does not modify the delivery term of the ESA but allows the BESS to be delayed until June 2027. 3CE receives a replacement financial product and a price reduction on the BESS of approximately 3%.
Staff Recommend Adoption of This Resolution to Amend the MRP Panoche and Midway ESAs Supports innovative repurposing of existing facilities and interconnection to reduce emissions Provides a high value RA product and reduces 3CE’s RA non-compliance risks Provides additional value by reducing BESS costs by approximately 3%
Item 10
Adopt Resolution No. OB-2026-06 approving and authorizing the CEO to execute an amendment to the power purchase agreement (PPA) with ORNI 50, LLC for the Mammoth Casa Diablo IV Geothermal Project as well as any necessary ancillary documents to extend the term five additional years to 2037 and to increase the Not-to-Exceed amount by $28,800,000 for a total term of fifteen years and a total not to exceed amount of $70,300,000 10 Proposed Amendment
Original PPA
Proposed Amendment
Counterparty
ORNI 50, LLC
No change
Parent Company
Ormat Technologies, Inc
No change
Product
Bucket 1 (PCC1) Renewable Energy, baseload geothermal
No change
Delivery Term
10 years
July 14, 2022 -
July 13, 2032
15 years
July 14, 2022 - July 13, 2037
Contract Capacity
7 MW
7.5 MW
Location
Mono County, CA
No Change
Percentage of Retail Load Served
~0.9%
No Change
Not to Exceed
$41,500,000
$70,300,000
Ormat proposed an extension in Dec 2025 and 3CE staff have been able to negotiate a proposed amendment extending the term by 5 years and including a capacity increase of 0.5 MW The effective date of the proposed amendment is October 2026, minimizing the impact to FY25-26.
Staff Recommend Adoption of This Resolution to Extend the Mammoth Casa Diablo PPA Baseload renewable geothermal resources provide unique cost-effective portfolio benefits for Resource Adequacy and renewable attributes CPUC has identified a need for “clean firm” resources as part of their 2021 Mid Term Reliability Procurement Order and their recent IRP Revised Proposed Decision that have increased the demand for geothermal generation.
In-state geothermal is limited and has a long lead time for development.
Helps maintain 3CE’s 100% clean board goal out to 2037.