Agenda packet — Central Coast Community Energy (3CE) Audit & Finance Committee, May 27, 2026

Audit and Finance Committee
May 27, 2026
10:30 AM
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 Committee members may also join the meeting from:

City of Watsonville
City Hall
275 Main Street
Watsonville, CA 95076
County Sheriff’s Felton Substation
6062 Graham Hill Road, Suite A
Felton, CA 95018
City of Salinas
City Hall
200 Lincoln Avenue
Salinas, CA 93901
City of Grover Beach
City Hall
154 South 8th Street
Grover Beach, CA 93433
City of Santa Maria
City Hall
110 East Cook Street, Council Chambers
Santa Maria, CA 93454
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 Committee, please provide 15 copies to a member of 3CE staff or the Board Clerk, who will distribute the information to the Committee members and staff.

The public may comment on the consent agenda and matters not listed on the agenda but within the Committee's jurisdiction at the opening of the meeting. The Committee 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 Committee 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 Committee, 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 Committee 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 Committee 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 Committee 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 Committee who have received, and applicants, contractors or their agents who have made, campaign contributions totaling more than $250 to a Committee 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 Committee 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 Items on the Consent Calendar and Items Not listed on the Agenda The public may address the Committee on the Consent Calendar and any matter within the jurisdiction of the Committee but not on the agenda.

CONSENT CALENDAR

1. Approve minutes from the March 18, 2026 meeting of the Audit and Finance Committee

2. Financial Report for the period of October 1, 2025, through March 31, 2026

3. Investment Performance Report for the period of October 1, 2025, through March 31, 2026

REGULAR AGENDA

4. Consider supporting the Policy Board’s approval of the FY 2026-27 Financial Policies

5. Presentation on the FY 2025-26 Mid-Year Budget Forecast Adjournment
Audit and Finance Committee
March 18, 2026
9:00 AM
Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA 93940
Marriott Marquis
Washington, DC
901 Massachusetts Ave NW,
Washington, DC, 20001
Santa Cruz County Sheriff’s
Felton Substation
6062 Graham Hill Road,
Suite A
Felton, CA 95018
City of Salinas
City Hall
200 Lincoln Avenue
Salinas, CA 93901
City of Grover Beach
City Hall
154 South 8th Street
Grover Beach, CA 93433
City of Santa Maria
City Hall
110 East Cook Street, Council Chambers
Santa Maria, CA 93454

MINUTES
The meeting was called to order at 9:01 AM with 5 members attending from 5 noticed locations and a quorum established.

Members Present: City of Grover Beach: Bronson
County of Santa Cruz: Martinez
City of Santa Maria: Rowlands
City of Salinas: Vice Chair Mendez
City of Watsonville: Chair Dutra
Members Absent: None
Chair called for corrections or additions to the agenda.

Clerk announced that there were no changes to the agenda.

Page 1 of 47 ends

CONSENT CALENDAR
Chair opened public comment period on the Consent Calendar and items not listed on the agenda.

No public comments received.

Chair closed public comment period.

MOTION: Moved by Vice Chair Mendez, seconded by Member Bronson, to approve the Consent Calendar as submitted
ACTION: The Motion Carried with a roll call vote: 5/0/0 AYES: Bronson, Martinez, Rowlands, Vice Chair Mendez, Chair Dutra NOES: None
ABSENT: None

1. Approved Minutes from the January 21, 2026, meeting of the Audit and Finance Committee as submitted.

2. Financial Report for the period of October 1, 2025, through December 31, 2025

REGULAR AGENDA

3. Received a presentation on 3CE’s FY 2024-25 audited financial statements The Chair opened the public comment period.

No public comment received.

The Chair Closed the public comment period.

MOTION: Moved by Member Martinez, seconded by Member Rowlands, to support staff recommendation ACTION: The Motion Carried with a roll call vote: 5/0/0 AYES: Bronson, Martinez, Rowlands, Vice Chair Mendez, Chair Dutra NOES: None
ABSENT: None

4. Provided Authorization to Proceed with Second Energy Prepayment Transaction (Estimated $800 Million – $1.2 Billion)
The Chair opened the public comment period.

No public comment received.

The Chair Closed the public comment period.

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MOTION: Moved by Member Bronson, seconded by Vice Chair Mendez ACTION: The Motion Carried with a roll call vote: 5/0/0 AYES: Bronson, Martinez, Rowlands, Vice Chair Mendez, Chair Dutra NOES: None
ABSENT: None

5. Supports seeking the Policy Board's approval to establish a temporary residential rate “3CFlex” to support customers impacted by the California Public Utilities Commission’s Power Charge Indifference Adjustment (PCIA) decisions. And supports seeking Policy Board approval of 3CFlex effective May 1, 2026, through December 31, 2026, with total residential enrollment capped at no more than 10% of residential load
The Chair opened the public comment period.

No public comment received.

The Chair Closed the public comment period.

MOTION: Moved by Member Martinez, seconded by Member Bronson, to support staff recommendation ACTION: The Motion Carried with a roll call vote: 5/0/0 AYES: Bronson, Martinez, Rowlands, Vice Chair Mendez, Chair Dutra NOES: None
ABSENT: None
Adjourned at 9:47 AM

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Staff Report Item 2
TO: 3CE Audit and Finance Committee
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Gina Urmatan, Senior Accountant
SUBJECT: Financial Report for the period of October 1, 2025, through March 31, 2026 DATE: May 27, 2026
RECOMMENDATION:

Receive a financial report for the period October 1, 2025, through March 31, 2026.

SUMMARY:

For the six-month period ended March 31, 2026, 3CE reported operating revenues of $289.8 million and operating expenses of $242.5 million, resulting in operating income of $47.3 million. Net non-operating revenue totaled $5.1 million, primarily driven by interest and investment returns, resulting in a total increase in net position of $52.4 million.

Year-to-date operating revenue was $9.2 million above budget, primarily due to stronger-than-anticipated performance across multiple customer classes. Non-operating revenue, consisting primarily of investment returns from assets held in operating and investment accounts and interest on collateral, exceeded budget by $0.6 million due to higher-than-anticipated investment yields. In total, year-to-date revenues and other sources were $9.8 million above budget, representing a favorable variance of 3%.

This favorable revenue variance is expected to narrow over the remainder of the fiscal year as the February 15, 2026, electric generation rate adjustment is reflected over a longer portion of the reporting period.

Year-to-date operating expenditures, excluding capital outlay, were $57.0 million below budget, representing a favorable variance of 19%. This variance was primarily attributable to lower-than-anticipated energy costs, which were $54.6 million under budget. The favorable energy cost variance reflects a combination of factors, including lower market prices, the timing of invoices for items such as Renewable Energy Credits (RECs) and annual net energy metering true-ups, and higher-than-planned

Page 4 of 47 ends

revenue from congestion revenue rights. These variances are expected to moderate over the remainder of the fiscal year as 3CE fulfills its energy-related obligations, including resource adequacy (RA) and REC purchases, and as costs increase during the higher-priced summer months.

Non-energy operating costs were $2.3 million below budget due to lower-than-planned costs for contracted services, staff vacancies, and energy programs. Capital outlay is $0.05 million below budget due to pending work on electric vehicle charging capital projects. Non-energy operating costs are projected to level out over the fiscal year as contracted services materialize and energy programs and capital projects continue to progress. Year-to-date total expenditure, including capital outlay, is $57.0 million lower than the budget, a favorable variance of 19%.

Net position as of March 31, 2026, totaled $315.1 million, representing an increase of $52.4 million from the prior fiscal year-end. This increase was primarily driven by growth in cash and investment balances, coupled with a decrease in accrued cost of electricity. Cash, cash equivalents, restricted cash, and investments totaled $282.5 million, an increase of $59.6 million from the start of the fiscal year. The favorable change in liquidity was primarily attributable to cash generated from operating revenues.

Overall, the year-to-date statement of net position reflects a strong financial position, with increased liquidity, reduced liabilities, and continued growth in net position compared to the prior fiscal year-end.

FISCAL IMPACT:

There is no financial impact associated with receiving this report.

ATTACHMENT(S):

1. March 31, 2026 Financial Report

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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 March 31, 2026

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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 March 31, 2026, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the six 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
May 4, 2026
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com

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ASSETS
Current assets
Cash and cash equivalents - unrestricted 170,824,661$
Cash - restricted 2,979,844
Accounts receivable, net of allowance 38,733,950
Accrued revenue 23,518,107
Other receivables 3,844,686
Investments 93,681,696
Prepaid expenses 223,715
Deposits 21,337,133
Loan receivable 196,118
Total current assets 355,339,910
Noncurrent assets
Investments 14,980,900
Deposits 36,204
Loan receivable 1,037,262
Capital assets, net of depreciation and amortization 6,677,719 Total noncurrent assets 22,732,085
Total assets 378,071,995

LIABILITIES
Current liabilities
Accrued cost of electricity 42,187,024
Accounts payable 1,658,302
Other accrued liabilities 3,535,395
User taxes and energy surcharges due to other governments 1,853,984 Security deposits - energy suppliers 1,116,000
Lease liability 365,298
Total current liabilities 50,716,003
Noncurrent liabilities
Security deposits - energy suppliers 11,950,650
Lease liability 303,990
Total noncurrent liabilities 12,254,640
Total liabilities 62,970,643

NET POSITION
Net investment in capital assets 5,906,509
Restricted for security collateral 2,979,844
Unrestricted 306,214,999
Total net position 315,101,352$
As of March 31, 2026

STATEMENT OF NET POSITION

CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report. 2 Page 8 of 47

OPERATING REVENUES
Electricity sales, net 289,688,772$
Other income 109,204
Total operating revenues 289,797,976

OPERATING EXPENSES
Cost of electricity 218,758,349
Contract services 6,635,568
Staff compensation 6,559,067
Program incentives 8,558,313
Other operating expenses 1,674,677
Depreciation and amortization 329,328
Total operating expenses 242,515,302
Operating income (loss) 47,282,674

NONOPERATING REVENUES (EXPENSES)
Investment income 5,142,617
Interest expense (17,344)
Nonoperating revenues (expenses) 5,125,273
CHANGE IN NET POSITION 52,407,947
Net position at beginning of period 262,693,405
Net position at end of period 315,101,352$
Six Months Ended March 31, 2026

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CENTRAL COAST COMMUNITY ENERGY
See accountants' compilation report. 3 Page 9 of 47

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 335,566,433$
Receipts from wholesale sales and other operating revenue 6,722,388 Receipts of deposits and collateral 49,898,884
Payments to suppliers for electricity (263,664,896)
Payments for other goods and services (8,139,638)
Payments of deposits and collateral (44,241,185)
Payments for program incentives (9,175,065)
Payments for staff compensation (6,254,639)
Payments of taxes and energy surcharges to other governments (5,693,743) Net cash provided by operating activities 55,018,539

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments of lease (189,747)
Purchases of capital assets (492,512)
Net cash provided (used) by capital and related financing activities (682,259)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 3,557,557
Proceeds from sales and maturities of investments 84,300,000 Loan principal received 96,699
Investment purchases (85,640,670)
Net cash provided (used) by investing activities 2,313,586 Net change in cash and cash equivalents 56,649,866
Cash and cash equivalents at beginning of year 117,154,639 Cash and cash equivalents at end of period 173,804,505$ Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted 170,824,661$
Cash - restricted 2,979,844
Cash and cash equivalents 173,804,505$
Change in fair value of investments 1,694,132$
Change in interest income receivable (109,072)$
Six Months Ended March 31, 2026

STATEMENT OF CASH FLOWS

CENTRAL COAST COMMUNITY ENERGY

NONCASH INVESTING ACTIVITIES
See accountants' compilation report. 4 Page 10 of 47
Operating income (loss) 47,282,674$
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation and amortization expense 329,328
(Increase) decrease in:

Accounts receivable, net of allowance 23,728,642
Accrued revenue 16,826,201
Other receivables 163,895
Prepaid expenses 230,565
Deposits 4,080,373
Increase (decrease) in:

Accrued cost of electricity (38,550,940)
Accounts payable (1,724,503)
Other accrued liabilities 1,445,905
User taxes and energy surcharges due to other governments (370,927) Security deposits - energy suppliers 1,577,326
Net cash provided by operating activities 55,018,539$

CENTRAL COAST COMMUNITY ENERGY
STATEMENT OF CASH FLOWS (continued)
Six Months Ended March 31, 2026

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY OPERATING ACTIVITIES
See accountants' compilation report. 5 Page 11 of 47
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 six months ended March 31, 2026, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

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

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

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

Maher Accountancy
San Rafael, CA
May 4, 2026
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com

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

REVENUES AND OTHER SOURCES
Electricity sales, net $ 38,788,386 $ 44,875,995 $ (6,087,609) -14% $ 289,688,772 $ 280,544,048 $ 9,144,724 3% $ 578,022,716 $ 288,333,944 Interest and investment returns 895,676 758,333 137,343 18% 5,142,617 4,549,998 592,619 13% 9,100,000 3,957,383 Other income 63,396 6,250 57,146 914% 109,204 37,500 71,704 191% 75,000 (34,204) Total revenues and other sources 39,747,458 45,640,578 (5,893,120) -13% 294,940,593 285,131,546 9,809,047 3% 587,197,716 292,257,123 EXPENDITURES AND OTHER USESCurrent Expenditures Cost of energy 36,513,674 39,637,388 3,123,714 8% 219,213,776 273,862,370 54,648,594 20% 534,776,256 315,562,480 Salaries and benefits 1,320,248 1,208,885 (111,363) -9% 6,559,067 7,032,658 473,591 7% 14,260,774 7,701,707 Services and supplies 3,307,153 3,590,750 283,597 8% 16,602,878 18,440,977 1,838,099 10% 38,160,686 21,557,808 Capital outlay 102,782 100,000 (2,782) -3% 550,011 600,000 49,989 8% 1,200,000 649,989 Total current expenditures 41,243,857 44,537,023 3,293,166 7% 242,925,732 299,936,005 57,010,273 19% 588,397,716 345,471,984 Surplus (deficit) (1,496,399)$ 1,103,555$ (2,599,954)$ 52,014,861$ (14,804,459)$ 66,819,320$ (1,200,000)$ (53,214,861)$ Favorable variances represent revenues exceeding budget or expenditures below budget.

Annual

CENTRAL COAST COMMUNITY ENERGY

BUDGETARY COMPARISON SCHEDULE
Current Month and Six Months Ended March 31, 2026
Current Month
Variance
Favorable
(unfavorable)
Year-To-Date
Variance
Favorable
(unfavorable)
See accountants' compilation report. 2 Page 13 of 47
CCA Program surplus/(deficit)
per budgetary comparison schedule: 52,014,861$
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 172,403 Subtract depreciation expense (329,328)
Add back capital asset acquisitions 550,011
Change in Net Position 52,407,947$

REVENUES, EXPENSES AND CHANGES IN NET POSITION

CENTRAL COAST COMMUNITY ENERGY

BUDGET RECONCILIATION TO STATEMENT OF
Six Months Ended March 31, 2026
See accountants' compilation report. 3 Page 14 of 47
Budget Item
YTD Variance -
Favorable
(Unfavorable) Comment
Electric Sales Revenue, net 3.3% 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 20.0% 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.

Salaries and Benefits 6.7% Staffing expenses are under budget due to the timing of new hires.

Services and Supplies 10.0% This category includes accounting, IT, technical and other consultants.

Budget Commentary for significant items

CENTRAL COAST COMMUNITY ENERGY
October 1, 2025 through March 31, 2026

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Return of Investments YTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CASH AND CASH EQUIVALENTSRiver City Bank / Chase / West Coast Community Bank - Money Market and other Interest Earning AccountsFunds Invested - Average Balance 96,624,568$ 99,293,298$ 108,525,583$ 110,254,298$ 124,052,493$ 126,672,529$ Gains/Losses/Interest 2,157,798$ 331,876$ 320,565$ 354,632$ 351,482$ 354,822$ 444,421$ Average APY 4.12% 3.87% 3.92% 3.83% 3.43% 4.21%INVESTMENTSSchwab/FidelityFunds Invested - Average Balance 131,114,341$ 131,499,666$ 131,948,441$ 132,208,888$ 132,677,578$ 133,044,877$ Gains/Losses/Interest 2,414,462$ 574,669.46 289,175.13 406,774.61 300,989.12 472,598.40 370,254.94 Average APY 5.26% 2.64% 3.70% 2.73% 4.27% 3.34%

CENTRAL COAST COMMUNITY ENERGY
Investment Summary
October 1, 2025 through September 30, 2026

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Current 0 - 30 Days 31 - 60 Days 61 - 90 Days > 91 Days A/R Balance 17,139,197$ 12,087,676$ 2,420,910$ 1,784,025$ 5,302,142$ 38,733,950$

CENTRAL COAST COMMUNITY ENERGY
Summary of Accounts Receivable, Net of Bad Debt Allowance As of March 31, 2026

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Staff Report Item 3
TO: 3CE Audit and Finance Committee
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Thomas White, Accountant
SUBJECT: Investment Performance Report for the period of October 1, 2025, through March 31, 2026
DATE: May 27, 2026
RECOMMENDATION:
3CE investment performance report for the period of October 1, 2025, through March 31, 2026.

BACKGROUND:

As of March 31, 2026, Central Coast Community Energy held $282.5 million across its operating and investment accounts. The agency’s investment strategy remains conservative and compliant with the Investment Policy and the California Government Code, prioritizing liquidity, preservation of capital, and a passive investment approach. The portfolio's structure is designed to support day-to-day operating needs, meet collateral calls, and maintain reserves for strategic and rate stabilization purposes.

In the fourth quarter of FY 2024-25, 3CE established a new operating account with West Coast Community Bank to further diversify its financial holdings. The selection of 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 March 31, 2026, 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 different 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

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funds. As of March 31, 2026, 3CE held $282.5 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 $120,711,413
cash (sweep) - $102.3M
money market - $11.5M
cash (operating) - $4.0M
letters of credit - $3.0M
Chase $14,030,532 cash (held for collateral)
West Coast Community Bank $14,796,272 money market
Investment
Schwab $65,791,612
Treasuries - $59.0M
cash (sweep) - $0.0M
money market - $6.8M
Fidelity $67,137,272 Treasuries - $61.7M
money market - $5.5M
Total $282,467,101
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 March 31, 2026, 3CE managed $132.9 million in investments across its Schwab and Fidelity brokerage accounts. Through the second quarter, Treasury yields averaged between

3.50% and 4.38%. Short-term Treasuries with maturities under one year represented approximately 88% of total holdings, while three longer-term Treasuries, each valued at $5.0 million, mature in the second and third quarters of 2027 and the first quarter of 2028. 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 March 31, 2026, 3CE held $120.3 million in cash and cash equivalents, $120.6 million in U.S. Treasuries, and $41.5 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 14.7%.

Cash and Investment Mix Holdings
Type Market Value
% of
Portfolio
Permitted by
CA Government Code
Cash and cash equivalents $120,316,327 42.6% 100%
Money Market Funds $41,514,450 14.7% 20%
U.S. Treasuries $120,636,324 42.7% 100%
Total $282,467,101 100.0%

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The FY 2025-26 Adopted Budget, with appropriations of $488.4 million, included estimated investment revenues of $9.1 million. Through the second quarter, investment earnings from operating and investment accounts netted $5.1 million, $2.8 million from interest on cash and money market accounts, and $2.5 million from short-term investments, mostly from Treasuries. Interest earned on 3CE collateral held by counterparties totaled $0.3 million. To date, the total investment and interest earnings from internal liquidity and counterparty collateral are $5.4 million. This first quarter estimate is higher than the $4.5 million estimated in the recommended budget.

As of March 31, 2026, 3CE has 175 days of cash on hand. This is based on the total cash and equivalents of $243.5 million divided by an average daily expense of $1.6 million. Total operating expenses for FY 2025-26, less depreciation, are $588.4 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.

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Staff Report Item 4
TO: 3CE Audit and Finance Committee
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Juan Lopez, Director of Finance
SUBJECT: Consider supporting the Policy Board’s approval of the FY 2026-27 Financial Policies
DATE: May 27, 2026
RECOMMENDATION:

Consider supporting the Policy Board’s approval of the FY 2026-27 Financial Policies.

BACKGROUND:

The Policy Board adopts 3CE’s Financial Policies (Policies) annually as part of the budget development process to ensure alignment between the agency’s fiscal framework and strategic objectives. This recurring adoption process keeps the Policy Board apprised of 3CE’s financial management practices and affirms the foundation for the annual recommended budget.

The Policies have undergone revisions, including the consolidation of administrative and accounting policies into a single, comprehensive framework. Notable updates included establishing reserve types, including the Strategic Reserve, Energy Rate Stabilization Reserve, Renewable Energy Innovation and Initiatives Reserve, and Capital Infrastructure Reserve. Further revisions clarified how those reserves are measured, moving from net position to readily available liquidity to more accurately reflect 3CE’s fiscal resiliency.

Staff seeks input from the Audit & Finance Committee on the proposed FY 2026-27 Financial Policies before recommending them to the Policy Board at its regular meeting on June 17, 2026.

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DISCUSSION/ANALYSIS:

Staff reviewed the Financial Policies to identify improvements in clarity, terminology, and policy completeness. The review incorporated credit rating methodology applicable to public electric utilities and comparable policies from peer California CCAs.

The proposed changes fall into four categories:

1. Energy Rate Stabilization Reserve. The most substantive policy change concerns the Energy Rate Stabilization Reserve. Revisions clarify that the central purpose of this reserve is to support rate smoothing and long-term rate stability, thus sustaining customer trust and mitigating opt-out risk during periods of market and regulatory volatility. New language also describes the reserve's accounting treatment under GASB Statements 62 and 63, the ability to defer inflows of resources (revenues) and their effect on net position. Transparency and replenishment expectations are also formalized: any material or sustained use of the reserve must be reflected in the Recommended Budget, accompanied by a long-term replenishment plan.

2. New Section: Credit Rating, Coverage, and Liquidity Targets. This new section is added, establishing formal targets for credit rating, liquidity, and access to capital markets. Key provisions include a Days Liquidity on Hand (DLOH) target of 180 days (mirroring the reserve target allocation based on expenditures), a long-term credit rating target of A+/A1 or higher with any nationally recognized rating organization, the ability to maintain a committed revolving liquidity facility with investment-grade financial institutions (with authority by the Policy Board), and a requirement for the CFO to report annually to the Audit & Finance Committee on the status of any liquidity facility. This section formalizes practices already implied by the agency's financial management approach and provides a policy foundation for credit-related decisions.

3. Capital Infrastructure Reserve and Capital Projects. Section 6.5 is updated to require that funding contributions to the Capital Infrastructure Reserve be established annually through the budget process or amended by Policy Board resolution, providing clearer governance over reserve funding. In the Capital Facilities section, the language has been updated to reference Resolution No. PB-2025-04, which delegates authority to the Executive Committee to approve capital projects up to $5.0 million per project, with CEO approval of associated contracts.

4. Structural Consolidation and Terminology Alignment. Three sections have been removed to eliminate redundancy: the standalone "Proprietary Fund" subsection (former 4.2), the "Establish 3CE Priorities" subsection (former 5.10), and the "Use of Unreserved Net Position" subsection (former 6.2), each of which is adequately addressed within other existing or updated provisions.

Throughout the document, "appropriations" is updated to "expenditures" and "programs" to "operations" to better align with enterprise fund terminology.

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FISCAL IMPACT:

Adopting the FY 2026-27 Financial Policies promotes financial sustainability by formalizing liquidity and credit-rating targets, strengthening reserve-replenishment requirements, and providing clear governance over capital and reserve decisions. These policies position 3CE to adapt to volatile market and regulatory conditions while pursuing stable customer rates.

CONCLUSION:

The FY 2026-27 Financial Policies reflect meaningful updates across multiple areas, most notably, the addition of formal credit rating and liquidity targets, a clarified and strengthened Energy Rate Stabilization Reserve policy, and structural consolidation to reduce redundancy. An annual update to the Financial Policies ensures that 3CE's Recommended Budget is developed within a practical, current, and transparent framework for fiscal planning and management.

ATTACHMENT(S):

1. FY 2026-27 Financial Policies – Redlined

2. FY 2026-27 Financial Policies

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Revised June 18, 2025DRAFT

REDLINED
Version 1.43.1
FY 2025-26 Financial Policies
Central Coast Community
EnergyFY 2026-27 Financial
Policies
Central Coast Community Energy

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1 1.0 Purpose and Background
The prudent and responsible stewardship of public assets is a principal obligation of Central Coast Community Energy (3CE) officials and managers. The development and maintenance of financial policies enable 3CE officials to protect those public assets, ensure transparency, and build public trust. Financial policies define a shared understanding of how 3CE administers its financial affairs and communicates how the agency manages its resources to provide deliver the highest value to the communities served.

This document centralizes 3CE’s financial policies and establishes a framework for overall fiscal planning, management, and decision-making related to public assets controlled by 3CE. These policies are reviewed, updated, and brought before the Policy Board as needed, but at least annually for adoption. This continued review and adoption promotes sound financial management and helps maintain 3CE’s stability, efficiency, and effectiveness by ensuring the Policy Board’s financial policy guidance is provided before 3CE takes any financial actions. The policies also offer guidelines for evaluating both current activities and proposals for future programs and direct 3CE’s financial resources toward meeting its objectives and strategic initiatives.

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

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

2.1 The Annual Budget
The Chief Executive Officer (CEO) will recommend a balanced budget that:
• Aligns annual expenditures with the revenue requirement established through a cost-of-Page 25 of 47 2 service methodology;
• Minimizes reliance on reserves and one-time funding sources for ongoing operations; and • Maintains competitive, marketcost-based rates while supporting 3CE’s renewable energy goals.

Through the CEO, the Chief Financial Officer (CFO) will consult with 3CE Officers and seek their input in developing the Recommended Budget through cooperative discussions and financial education. The CEO will keep the Policy Board apprised of the condition of 3CE’s finances and emerging fiscal issues. Through the CEO and Officers, 3CE will work with the California Community Choice Association (CalCCA), state representatives, legislative advocates in the State Capitol, and other local government organizations to ensure our community voice is heard regarding any state legislation or regulation affecting our stakeholders.

3.0 Roles and Functions

3.1 Role of Chief Executive Officer
The CEO serves as the chief policy advisor to the Policy Board, Operations Board, and the various Board committees. The CEO promotes responsible resource allocation, strives to protect 3CE’s financial position and integrity, and provides independent analysis on policy and financial issues.

The CEO is the fund manager for 3CE’s eEnterprise fFund and any other funds that may be created.

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

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3 • Developing and performing financial forecasts;
• Overseeing Middle Office responsibilities as identified in 3CE’s Energy Risk Management Policy;
• Monitoring monthly revenue, expenditure, and cash flow performance and conformance with the Adopted Budget;
• Meeting the Policy Board’s strategic financial initiatives and policies; and • Ensuring items brought before the Policy Board are transparent, accurate, complete, fully justified, and reviewed by all appropriate stakeholders.

3.4 Principal Functions of the Audit and Finance Committee The Audit and Finance Committee’s principal functions include receiving staff updates on financial issues affecting 3CE and providing oversight and direction to staff in developing and modifying the budget and audits.

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

4.0 Services and Fund Structure

4.1 Enterprise Fund
3CE operates as an enterprise fund. The enterprise fund accounts for revenues and

4.2 Proprietary Fund
Enterprise fund expenses and revenues will be established at sufficient levels to properly maintain the fund’s infrastructure and provide significant capital development.

4.34 Rate Structure and Net Position
The enterprise fund will maintain an adequate rate structure to cover the cost of all operations, including cash flow, capital replacement and maintenance, debt service if applicable, contingency funding, reserve contributions, and depreciation. Rates may be offset from the available unreserved net position, including the Energy Rate Stabilization Reserve, only after these requirements are met.

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4 5.0 Operating Budget

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

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

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

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

5.3 Ongoing Operations Needs
3CE will adequately fund ongoing maintenance and operational needs with ongoing annual revenue. Without prior direction and approval by from the Policy Board, the use of one-time revenues or short-term borrowing is not allowed as a resource to for financinge ongoing operational needs.

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

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

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5 5.6 Responsibility for Budget Management and Budgetary Control 3CE shall maintain a budgetary control system to help it adhere to the adopted budget. The CEO has budgetary control and authority over appropriationsexpenditures. The CFO shall administer and maintain the system utilized for budgetary control. As the administrator of the budgetary control system, the CFO shall notify the CEO when a department is reaching the departmentalapproaches its appropriation expenditure limit. The CFO shall seek guidance from the CEO on all issues relating to appropriations expenditures and controls. 3CE Officers, in coordination with the CFO, have primary responsibility for managing departmental
• Providing accurate and timely budget estimates;
• Monitoring revenues to ensure timely receipt in the amounts anticipated; • Ensuring that expenditures comply with the law, adopted resolutions, policies, and align appropriations relative to revenues;
• Providing prompt notification to the CEO when either revenues or expenditures are not as anticipated; and
• Preparing and justifying budget revisions when necessary

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

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

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

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

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

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

5.10 Establish 3CE Priorities
Modifications to the Adopted Budget require the approval of a majority of Policy Board members.

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

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

5.123 Capital Asset Definition
3CE defines capital assets as assets with initial, individual costs of $5,000 or more and an estimated useful life greater than one year, except infrastructure, for which the threshold is set at $100,000.

Capital assets include both tangible and intangible assets categorized by asset type for reporting purposes.

5.134 Appropriations for Contingencies
3CE annually adopts an appropriationbudgets for contingencies to provide sufficient working capital and a margin of safety for unplanned operational needs. The contingency appropriation is utilized only after all other budget resources have been examined. The appropriation budgeted amount for operational contingencies shall be equal to five percent (5%) of recommended

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7 appropriations, excluding cost of energy (COE), unless expressly modified by the Policy Board as part of the annual budget adoption.

6.0 Net Position and Reserve Policies

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

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

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

6.34 Energy Rate Stabilization Reserve
The agency shall maintain an energy rate stabilization reserve equal to twenty (20%) of the budgeted COE. This reserve serves as a financial buffer to absorb fluctuations in energy costs and respond to unforeseen changes in market conditions or regulatory requirements that may increase power procurement expenses that cannot be absorbed by changes to cover recovery effortsto respond to unforeseen changes in market conditions or regulatory requirements that may increase power procurement expenses beyond what rate adjustments can cover, such as electric generation rate adjustments.

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

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8 The reserve may be partially or fully accounted for under Government Accounting Standards Board (GASB) Statement 62 and GASB Statement 63, which govern the presentation of deferred outflows and inflows of resources and their effects on net position. A transfer into the reserve reduces revenue and the change in net position in the year of deferral by the same amount. A transfer from the reserve increases revenues and changes net position in the year the transfer occurs.

The reserve balance is recorded on the Statement of Net Position as unrestricted net position and, if deferred, in a separate section following liabilities, entitled Deferred Inflows of Resources.

Transfers to and from the reserve are recorded in the Statements of Revenues, Expenses, and Changes in Net Position under Operating Revenues.

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

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

6.56 Capital Infrastructure Reserve
The agency shall establish a capital infrastructure reserve sufficient to provide for the operation, routine scheduled maintenance, reasonably anticipated unplanned repair, and ultimate orderly replacement costs of 3CE’s capital infrastructure, including enterprise software, real estate, and electric generation and storage facilities. Funding contributions to this reserve shall be established annually through the budget process or otherwise amended by Policy Board resolution.

6.67 Measurement of Reserve Targets
Due to the nature of the agency's business, the mechanism to fund the four reserves shall be the use of for funding the four reserves shall be cash, cash equivalents, and short-term investments, including any balance in the Energy Rate Stabilization Reserve held as deferred inflows.. The reserves must be liquid and available to ensure the ability to use the reservesthey can be used for their intended purpose. Market fluctuations, operational continuity, competitive advantage, and regulatory compliance are risks that are mitigated with robust reserves as the agency transitions to a clean and renewable electric grid.

7.0 Capital Facilities and Improvement Policies

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

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9 Projects in excess of $100,000 that have an estimated useful life of at least five years and are non-recurring with an estimated useful life of at least 5 years and non-recurring costs are considered capital projects and should be evaluated against other uses and priorities. All capital expenditures projects should be included in the Adopted Budget or taken to the Policy Board for approval and amendment to the Adopted Budget.

Per Resolution No. PB-2025-04, the Executive Committee is delegated to approve capital projects that do not exceed $5,000,000 per project, with CEO approval of any necessary contracts or agreements to effectuate the approved projects within that limit.

8.0 Credit Rating, Coverage, and Liquidity Targets

8.1 Rationale
A strong credit profile reduces 3CE’s borrowing costs, expands access to power-supply counterparties without onerous collateral postings, and signals financial discipline to ratepayers and member agencies. 3CE manages its finances to achieve and sustain an investment-grade issuer credit rating, with the long-term objective of reaching and maintaining a rating in the A category or higher.

8.2 Financial-Metrics Targets
Reserves shall support a DLOH (Days Liquidity on hand) target equal to 180 days. The Financial Policies seek to achieve a long-term target of a strong investment-grade rating (A+/A1 or higher) or an equivalent rating from any nationally recognized rating organization.

8.3 Liquidity Facilities
3CE may maintain a committed liquidity facility (revolving credit agreement or equivalent) with one or more investment-grade financial institutions. The CFO shall report annually to the Audit and Finance Committee on the status of the liquidity facility, including pricing, covenants, available headroom, and any anticipated renewal or replacement activity.

8.4 Credit-Rating Maintenance
3CE shall maintain active relationships with at least one nationally recognized credit rating organization. The CFO shall provide the Policy Board with any updates to 3CE’s rating actions and outlook changes.

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

Formatted: Space Before: 18 pt

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DRAFT
Version 1.4.1
FY 2026-27 Financial Policies
Central Coast Community Energy

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1 1.0 Purpose and Background
The prudent and responsible stewardship of public assets is a principal obligation of Central Coast Community Energy (3CE) officials and managers. The development and maintenance of financial policies enable 3CE officials to protect those public assets, ensure transparency, and build public trust. Financial policies define a shared understanding of how 3CE administers its financial affairs and communicates how the agency manages its resources to deliver the highest value to the communities served.

This document centralizes 3CE’s financial policies and establishes a framework for overall fiscal planning, management, and decision-making related to public assets controlled by 3CE. These policies are reviewed, updated, and brought before the Policy Board as needed, but at least annually for adoption. This continued review and adoption promote sound financial management and help maintain 3CE’s stability, efficiency, and effectiveness by ensuring the Policy Board’s financial policy guidance is provided before 3CE takes any financial actions. The policies also offer guidelines for evaluating both current activities and proposals for future programs and direct 3CE’s financial resources toward meeting its objectives and strategic initiatives.

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

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2 • Minimizes reliance on reserves and one-time funding sources for ongoing operations; and • Maintains competitive, cost-based rates while supporting 3CE’s renewable energy goals.

3.0 Roles and Functions

The CEO is the fund manager for 3CE’s enterprise fund and any other funds that may be created.

3.2 Principal Functions of the Chief Executive Officer
Principal functions of the CEO include:
• Promoting continuous improvement of the structures, systems, processes, and effectiveness of operations;
• Preparing the annual financial plan (Recommended Budget); • Evaluating potential federal, state, and local budget impacts; • Developing financial forecasts;
• Monitoring revenues and expenditures for conformance with the annual budget; • Recommending effective fiscal policies to carry out the 3CE mission; • Verifying Policy Board policies are consistently applied; and • Ensuring items brought before the Policy Board are transparent, accurate, complete, fully justified, and reviewed by appropriate stakeholders.

3.3 Principal Functions of the Chief Financial Officer
The CFO is 3CE’s Policy Board-appointed Treasurer and considered the subject-matter expert for the financial management of the agency. The CFO is responsible for:
• Carrying out financial operations efficiently and cost-effectively while adhering to all 3CE, state, and federal laws, regulations, and policies;
• Preparing budgets and financial estimates with attention to accuracy based on financial expertise, state, and federal funding and regulatory changes, and economic indicators affecting revenues, expenditures, and service levels;
• Reviewing, evaluating, and assessing potential federal and state budget and regulatory issues that may impact the agency;
• Developing and performing financial forecasts;
• Overseeing Middle Office responsibilities as identified in 3CE’s Energy Risk Management Policy;
• Monitoring monthly revenue, expenditure, and cash flow performance and conformance with the Adopted Budget;
• Meeting the Policy Board’s strategic financial initiatives and policies; and

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3 • Ensuring items brought before the Policy Board are transparent, accurate, complete, fully justified, and reviewed by all appropriate stakeholders.

3.4 Principal Functions of the Audit and Finance Committee The Audit and Finance Committee’s principal functions include receiving staff updates on financial issues and providing oversight and direction to staff in developing and modifying the budget and audits.

4.0 Services and Fund Structure

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

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

4.3 Rate Structure and Net Position
The enterprise fund will maintain an adequate rate structure to cover the cost of all operations, including cash flow, capital replacement and maintenance, debt service if applicable, contingency funding, reserve contributions, and depreciation. Rates may be offset from the available unreserved net position, including the Energy Rate Stabilization Reserve, only after these requirements are met.

5.0 Operating Budget

Expenditures are recommended based on the relationship between expected expenditures and revenue. If revenues are estimated to fall below expected amounts, the agency will take all actions

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4 available to reestablish a revenue and expenditure relationship that conforms to the operating requirements.

The Recommended Budget shall be presented to the Policy Board for adoption in September of each year and clearly presented to a general audience of the public.

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

5.3 Ongoing Operations Needs
3CE will adequately fund ongoing maintenance and operational needs with ongoing annual revenue. Without prior direction and approval from the Policy Board, the use of one-time revenues or short-term borrowing is not allowed as a resource for financing ongoing operational needs.

5.5 Appropriations and Transfers
The agency enterprise fund is not constrained by appropriation controls. The CEO is charged with maintaining the relationship between financing uses and sources and shall report to the Policy Board any deviation exceeding the adopted budget. The CEO is authorized to make appropriation transfers between departments within the enterprise fund as necessary to adequately reflect the agency's expenditure needs.

5.6 Responsibility for Budget Management and Budgetary Control 3CE shall maintain a budgetary control system to help it adhere to the adopted budget. The CEO has budgetary control and authority over expenditures. The CFO shall administer and maintain the system utilized for budgetary control. As the administrator of the budgetary control system, the CFO shall notify the CEO when a department approaches its expenditure limit. The CFO shall seek guidance from the CEO on all issues relating to expenditures and controls. 3CE Officers, in coordination with the CFO, have primary responsibility for managing departmental budgets by:
• Providing accurate and timely budget estimates;
• Monitoring revenues to ensure timely receipt in the amounts anticipated; • Ensuring that expenditures comply with the law, adopted resolutions, policies, and align appropriations relative to revenues;
• Providing prompt notification to the CEO when either revenues or expenditures are not as

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5 anticipated; and
• Preparing and justifying budget revisions when necessary

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

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

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

5.9 Budget Development
Budget development is an annual process incorporating the Policy Board’s priorities and weighing competing requests for 3CE resources within expected fiscal constraints. The process begins with departments preparing “baseline” budgets proposing levels of service and staffing that can be carried out within expected resources (e.g., revenues). Departments may submit “augmentation requests” for additional resources to mitigate potential impacts, increase staffing/services, or invest in infrastructure. The CEO evaluates baseline budgets and augmentation requests within the constraints of a balanced budget and builds the annual Recommended Budget. Staff considers the following criteria in formulating recommendations for the annual budget and subsequent mid-year budget modifications:
• Mandated by current law, regulation, or Policy Board policy; • Alignment with 3CE’s strategic initiatives and priorities; • Necessary to maintain the current level of mission-critical services/operations; • Substantiation of compelling public need (e.g., health, safety, economic vitality, quality of life) that cannot be met within existing resources;
• Likelihood of success based on prior performance, degree of planning/specificity, requested resources, and assumed timeline;
• Leverages sustainable financial support from non-3CE sources; • Appropriate placement of responsibility (federal, state, or local); • Degree of urgency; and
• Critical infrastructure investment to ensure productivity and continuity of operations.

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

5.10 Amendments to the Adopted Budget
Modifications to the Adopted Budget require the approval of a majority of Policy Board members.

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

5.12 Capital Asset Definition
3CE defines capital assets as assets with initial, individual costs of $5,000 or more and an estimated useful life greater than one year, except infrastructure, for which the threshold is set at $100,000.

Capital assets include both tangible and intangible assets categorized by asset type for reporting purposes.

5.13 Appropriations for Contingencies
3CE annually budgets for contingencies to provide sufficient working capital and a margin of safety for unplanned operational needs. The contingency is utilized only after all other budget resources have been examined. The budgeted amount for operational contingencies shall be equal to five percent (5%) of recommended appropriations, excluding cost of energy (COE), unless expressly modified by the Policy Board as part of the annual budget adoption.

6.0 Net Position and Reserve Policies

6.2 Strategic Reserve
A strategic reserve is essential to provide an adequate financial backstop throughout the year. 3CE shall adopt a strategic reserve equal to twenty-five percent (25%) of budgeted appropriations. The

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7 strategic reserve will provide sufficient working capital (cash flow), fund settlements of legal judgments against 3CE in excess of reserves specifically designated for litigation, for natural disasters as determined by the CEO or Policy Board, and for one-time-only budget overruns that could not be addressed through the annual appropriations for contingencies.

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

6.3 Energy Rate Stabilization Reserve
The agency shall maintain an energy rate stabilization reserve equal to twenty (20%) of the budgeted COE. This reserve serves as a financial buffer to absorb fluctuations in energy costs and to respond to unforeseen changes in market conditions or regulatory requirements that may increase power procurement expenses beyond what rate adjustments can cover.

The central purpose of this reserve is to support rate smoothing and long-term rate stability. By strategically using this reserve, 3CE pursues stable customer rates even during periods of cost volatility, strengthening its position as a load-serving entity and sustaining customer trust.

The reserve may be partially or fully accounted for under Government Accounting Standards Board (GASB) Statement 62 and GASB Statement 63, which govern the presentation of deferred outflows and inflows of resources and their effects on net position. A transfer into the reserve reduces revenue and the change in net position in the year of deferral by the same amount. A transfer from the reserve increases revenues and changes net position in the year the transfer occurs.

The reserve balance is recorded on the Statement of Net Position as unrestricted net position and, if deferred, in a separate section following liabilities, entitled Deferred Inflows of Resources.

Transfers to and from the reserve are recorded in the Statements of Revenues, Expenses, and Changes in Net Position under Operating Revenues.

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

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8 6.5 Capital Infrastructure Reserve
The agency shall establish a capital infrastructure reserve sufficient to provide for the operation, routine scheduled maintenance, reasonably anticipated unplanned repair, and orderly replacement of 3CE’s capital infrastructure, including enterprise software, real estate, and electric generation and storage facilities. Funding contributions to this reserve shall be established annually through the budget process or otherwise amended by Policy Board resolution.

6.6 Measurement of Reserve Targets
Due to the nature of the agency's business, the mechanism for funding the four reserves shall be cash, cash equivalents, and short-term investments, including any balance in the Energy Rate Stabilization Reserve held as deferred inflows. The reserves must be liquid and available to ensure they can be used for their intended purpose.

7.0 Capital Facilities and Improvement Policies

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

Projects in excess of $100,000 with an estimated useful life of at least 5 years and non-recurring costs are considered capital projects and should be evaluated against other uses and priorities. All capital projects should be included in the Adopted Budget or taken to the Policy Board for approval and amendment to the Adopted Budget.

8.0 Credit Rating, Coverage, and Liquidity Targets

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9 8.3 Liquidity Facilities
3CE may maintain a committed liquidity facility (revolving credit agreement or equivalent) with one or more investment-grade financial institutions. The CFO shall report annually to the Audit and Finance Committee on the status of the liquidity facility, including pricing, covenants, available headroom, and any anticipated renewal or replacement activity.

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

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Staff Report Item 5
TO: 3CE Audit and Finance Committee
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Juan Lopez, Director of Finance
SUBJECT: Presentation on the FY 2025-26 Mid-Year Budget Forecast DATE: May 27, 2026
RECOMMENDATION:

Receive a presentation on the FY 2025-26 Mid-Year Budget Forecast.

BACKGROUND:

The Mid-Year Budget Forecast (Forecast) provides an updated assessment of 3CE’s financial position by comparing adopted budget assumptions with year-to-date performance, current market conditions, and projected operating needs. The Forecast supports informed decision-making by identifying revenue and expenditure trends that may affect 3CE’s financial health, rate stability, procurement planning, and strategic priorities. It also serves as a planning tool for the upcoming fiscal year’s budget and extends the analysis over multiple years to evaluate long-term risks, reserve needs, future funding requirements, and opportunities to strengthen organizational resilience.

On September 18, 2025, the Policy Board adopted Resolution No. PB-2025-06 approving the FY 2025-26 Recommended Budget. The adopted budget totaled $588.4 million in expenditures, financed by $587.2 million in estimated revenues and $1.2 million from the Capital Infrastructure Reserve (CIR), supporting continued operations, capital investments, and 59 full-time equivalent positions. The budget reflected a significant decrease from the prior year's adopted budget due to the cost of energy, primarily energy attributes; however, the cost of energy remained 3CE’s largest and most volatile expenditure at $534.8 million, or approximately 91% of total expenditures.

The adopted budget was developed within a conservative financial framework in response to ongoing regulatory and energy market uncertainty, particularly changes related to the Power Charge Indifference Adjustment (PCIA), IOU generation rates, and market price benchmarks. To preserve flexibility, the

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budget did not include a planned contribution to reserves. Overall, the Board’s action adopted a balanced budget intended to sustain core operations, maintain rate stability, support clean and renewable energy, and position 3CE to respond to evolving market and regulatory conditions.

DISCUSSION/ANALYSIS:

When adopting the FY 2025-26 budget, the Policy Board extended the CY 2025 electric generation rates into CY 2026, pending additional clarity on regulatory and IOU rate impacts, and directed staff to return in early 2026 with updated rates that align revenues with the adopted budget and remain consistent with 3CE’s financial policies. In response, on January 28, 2026, the Policy Board adopted Resolution No.

PB-2026-01 approving generation rates through April 2027. The action reduced 3CE’s systemwide average generation rate by approximately 25%, reflecting the lower cost structure included in the FY 2025-26 budget and year-to-date favorable actuals.

The rate adjustment shaped the FY 2025-26 financial outlook by lowering projected net electricity sales revenue for the remaining fiscal year and future years. While this reduced expected revenues, revenues remain sufficient to fund anticipated operating expenditures, support continued balance-sheet strength, and preserve flexibility to respond to market and regulatory volatility. Based on current forecasts and approved rates, 3CE estimates a favorable financial outcome relative to the adopted budget, primarily due to lower projected expenditures, particularly the cost of energy.

The Forecast estimates FY 2025-26 total expenditures of $507.6 million, a favorable variance of 14%, compared to the adopted budget. Operating expenditures are classified into two categories: energy and non-energy costs. Non-energy operating expenditures, consisting of personnel, and operating costs, are projected at $48.8 million compared to a budget of $52.4 million, a favorable variance of $3.6 million, or Mid-Year Forecast FY 2024-25
Actual
FY 2025-26
Adopted Budget
FY 2025-26
Mid-Year
Forecast
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
Net Electricity Sales 658,974,802 578,022,716 549,527,132 481,980,634 481,931,177 517,509,875 Deferred Revenue - - (39,527,962) - - -
Liquidated Damages 8,101,745 - - - - -
Other Income 159,518 75,000 136,849 50,500 50,000 50,000 Interest and Investment Returns 11,037,533 9,100,000 9,942,617 9,500,000 9,850,000 10,300,000 Sub-Total Revenues 678,273,598 587,197,716 520,078,636 491,531,134 491,831,177 527,859,875 Capital Infrastructure Reserve - 1,200,000 6,741,324 - - - Total Financing Sources $ 678,273,598 $588,397,716 $ 526,819,960 $491,531,134 $491,831,177 $ 527,859,875 Cost of Energy 591,911,994 534,776,256 452,043,477 428,189,003 425,815,688 463,720,606 Salaries and Benefits 10,765,707 14,260,774 12,601,420 17,824,929 19,894,394 22,141,915 Services and Supplies 31,067,935 38,160,686 36,220,044 35,917,201 36,521,095 37,197,354 Capital Assets - 1,200,000 6,741,324 9,600,000 9,600,000 4,800,000 Total Financing Uses $ 633,745,636 $588,397,716 $ 507,606,265 $491,531,134 $491,831,177 $ 527,859,875 Total Change to Net Position $ 44,527,962 $ 0 $ 19,213,695 $ 0 $ 0 $ 0

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7%. The lower non-energy operating costs are primarily attributable to lower-than-anticipated professional services that are moderately offset by higher-than-anticipated participation in energy programs and staffing vacancies, partially offset by higher healthcare premium costs. Forecasted years assume increased personnel costs based on full funding for all positions, higher salary and benefit costs reflecting competitive market trends, and growth trajectory across business units. Services and supplies assume sustained customer participation in energy programs and use of professional services.

The Forecast estimates the cost of energy for FY 2025-26 at $452.0 million, a favorable variance of or 16%, compared to the adopted budget. This favorable variance reflects a combination of lower-than-anticipated energy costs and improved internal forecasting. Staff refined current-year projections by incorporating year-to-date actuals, updated contract and market assumptions, and additional validation of energy attribute costs. These improvements provide a more accurate view of expected costs for the remainder of the fiscal year and better align the Forecast with 3CE’s portfolio obligations and market exposure.

Broader energy market conditions contributed to the lower projected cost of energy. Energy prices have softened relative to prior expectations, supported by lower natural gas prices, stronger output from renewables and storage, and reduced reliance on higher-cost market purchases as projects come online.

In addition, 3CE’s portfolio hedging and long-term procurement strategy have helped limit exposure to market volatility while allowing the agency to benefit from more favorable cost conditions.

While the Forecast reflects a strong improvement over the estimate used to develop the recommended budget, the cost of energy remains subject to uncertainty stemming from summer market conditions, Resource Adequacy (RA) costs under the Slice-of-Day framework, PPA timing and risks of delays, and retail load performance. In the forecasted years, the cost of energy is projected at $428.2 million in FY 2026-27, $425.8 million in FY 2027-28, and $463.7 million in FY 2028-29, reflecting lower near-term energy attribute costs and the expected benefits of new projects coming online, partially offset by market price exposure and future resource needs. 3CE is continually refining its modeling to capture the significant uncertainty of market and regulatory developments in financial forecasts. At this time, the forecasted financial performance remains highly volatile.

Capital asset expenditures are projected at $6.7 million, funded through the Capital Infrastructure Reserve, compared to the adopted budget of $1.2 million, primarily for office improvements, the EV Charger Asset Pilot, and planned land acquisition for 3CE’s future headquarters.

The Forecast estimates total revenues of $520.1 million, reflecting an unfavorable budget-to-forecast variance of 11%. Due to a favorable operating result in FY 2024-25 and the timing of the rate adjustment in 2026, staff estimates a $39.5 million deferral of electric revenue at year-end, to be applied to offset

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operating costs in future periods which will result in lower rates. Combined, net electricity sales and deferred revenue are projected at $510.0 million, approximately 12% below budget. Because forecasted out-year expenditures are lower than the currently adopted budget, the Forecast projects sufficient operating revenues to cover costs.

Interest and investment returns are projected at $9.9 million, approximately $842,600 above budget, supported by active treasury management and higher-than-budgeted investment earnings. Other income is projected at $136,849, approximately $61,800 above budget, due to external program funding and rental income. Forecasted years assume continued interest and investment earnings from the agency’s active treasury management and no adjustments to the current generation rate.

Reserve Targets
3CE is projected to improve its reserve position at year-end and move closer to meeting the reserve targets established in the Financial Policies. The forecast estimates reserves at year-end of $239.2 million, or 85% of the reserve target, compared to $219.9 million, or 78% of the adopted budget target.

While the current forecast reflects a stronger-than-expected financial position, reserve planning remains essential for managing future rate, regulatory, and market risks. As out-year expenditures are projected below the adopted budget, the Forecast anticipates the organization reaching its reserve targets within the forecast horizon.

FISCAL IMPACT:

The Forecast estimates total revenue of $520.1 million, a 11% lower revenue variance from the budget, and $507.6 million in total expenditures, equating to a 14% lower-than-budget variance, while maintaining growth in the estimated net position of $19.2 million, and using $6.7 million from the Capital Infrastructure Reserve for capital expenditures related to capital acquisition, asset development, and improvements. Because the Forecast is a mid-year estimate, unforeseen variables could increase or decrease net operating results in the coming months. These variables could include energy market volatility, especially in the summer months, higher-than-estimated energy attribute expenditures such as RA, retail load, and unforeseen regulatory impacts.

CONCLUSION:

The Forecast reflects 3CE’s continued focus on prudent financial stewardship and long-term planning.

The Operations Board will receive the Forecast at its May 27, 2026 special meeting, and the Policy Board will receive it at its June 17, 2026 meeting.

ATTACHMENT(S):

None.

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Central Coast Community Energy (3CE) Audit & Finance CommitteeMay 27, 2026

Central Coast Community Energy (3CE) Audit & Finance Committee
May 27, 2026